Document:

<PAGE>
                                                                   Exhibit 10(i)

            This CHANGE IN CONTROL SEVERANCE AGREEMENT (as modified, extended or
supplemented from time to time, this "Agreement") is entered into as of the 3rd
day of April, 2002 by and between Sterling Bancorp, a New York corporation (the
"Company"), and ___________________ ("Executive").

                              W I T N E S S E T H:

            WHEREAS, the Company considers the establishment and maintenance of
a sound and vital management to be essential to protecting and enhancing the
best interests of the Company and its shareholders;

            WHEREAS, the Company recognizes that, as is the case with many
publicly held corporations, the possibility of a change in control may arise and
that such possibility may result in the departure or distraction of management
personnel to the detriment of the Company and its shareholders;

            WHEREAS, the Board (as defined in Section 1 of Appendix A) has
determined that it is in the best interests of the Company and its shareholders
to secure Executive's continued services and to ensure Executive's continued
dedication to his duties in the event of any threat or occurrence of a Change in
Control (as defined in Section 4 of Appendix A) of the Company; and

            WHEREAS, the Board has authorized the Company to enter into this
Agreement:

            NOW, THEREFORE, for and in consideration of the premises and the
mutual covenants and agreements herein contained, the Company and Executive
hereby agree as follows:

            1. Definitions. As used in this Agreement, capitalized terms will
have the respective meanings set forth in Appendix A.

            2. Obligation of Executive. In the event of a tender or exchange
offer, proxy contest, or the execution of any agreement which, if consummated,
would constitute a Change in Control, Executive agrees not to voluntarily leave
the employ of the Company, other than as a result of Disability, retirement or
an event which would constitute Good Reason if a Change in Control had occurred,
until the Change in Control occurs or, if earlier, such tender or exchange
offer, proxy contest, or agreement is terminated or abandoned.

            3. Term of Agreement.

                  (a) Subject to Section 3(b), this Agreement shall be effective
on the date hereof and shall continue in effect until the Company shall have
given three

                                       34
<PAGE>
                                                                   Exhibit 10(i)

(3) years written notice of cancellation; provided, that, notwithstanding the
delivery of any such notice, this Agreement shall continue in effect for a
period of two (2) years after a Change in Control, if such Change in Control
shall have occurred during the term of this Agreement.

                  (b) Notwithstanding Section 3(a), this Agreement shall
terminate if Executive or the Company terminates Executive's employment prior to
a Change in Control; provided that, if (1) Executive's employment is terminated
prior to a Change in Control for reasons that would have constituted a
Qualifying Termination if they had occurred following a Change in Control; (2)
Executive reasonably demonstrates (or the Company agrees) that such termination
(or Good Reason event) was at the request of a third party who had indicated an
intention or taken steps reasonably calculated to effect a Change in Control;
and (3) a Change in Control involving such third party (or a party competing
with such third party to effectuate a Change in Control) does occur, then (A)
for purposes of this Agreement, the date immediately prior to the date of such
termination of employment or event constituting Good Reason shall be treated as
a Change in Control and (B) for purposes of determining the timing of payments
and benefits to Executive under Section 4, the date of the actual Change in
Control shall be treated as Executive's Date of Termination.

            4. Payments Upon Termination of Employment. (a) If during the
Termination Period the employment of Executive shall terminate pursuant to a
Qualifying Termination, then the Company shall provide to Executive:

                        (1) Within ten (10) days following the Date of
      Termination a lump-sum cash amount equal to the sum of (A) Executive's
      base salary through the Date of Termination and any bonus amounts which
      have become payable, to the extent not theretofore paid or deferred, (B) a
      pro rata portion of Executive's annual bonus for the fiscal year in which
      Executive's Date of Termination occurs in an amount at least equal to (i)
      Executive's Bonus Amount multiplied by (ii) a fraction, the numerator of
      which is the number of days in the fiscal year in which the Date of
      Termination occurs through the Date of Termination and the denominator of
      which is three hundred sixty-five (365), and reduced by (iii) any amounts
      paid from the Company's annual incentive plan for the fiscal year in which
      Executive's Date of Termination occurs; plus

                        (2) Within ten (10) days following the Date of
      Termination, a lump-sum cash amount equal to (A) two (2) times Executive's
      highest annual rate of base salary during the 12-month period immediately
      prior to Executive's Date of Termination, plus (B) two (2) times
      Executive's Bonus Amount.

                  (b) If during the Termination Period the employment of
Executive shall terminate pursuant to a Qualifying Termination, the Company
shall continue to provide, for a period of two (2) years following Executive's
Date of Termination, Executive (and Executive's dependents, if applicable) with
the same level of medical, dental, accident, disability and life insurance
benefits upon substantially the

                                       35
<PAGE>
                                                                   Exhibit 10(i)

same terms and conditions (including contributions required by Executive for
such benefits) as existed immediately prior to Executive's Date of Termination
(or, if more favorable to Executive, as such benefits and terms and conditions
existed immediately prior to the Change in Control); provided that, if Executive
cannot continue to participate in the Company plans providing such benefits, the
Company shall otherwise provide such benefits on the same after-tax basis as if
continued participation had been permitted. Notwithstanding the foregoing, in
the event Executive becomes reemployed with another employer and becomes
eligible to receive welfare benefits from such employer, the welfare benefits
described herein shall be secondary to such benefits during the period of
Executive's eligibility, but only to the extent that the Company reimburses
Executive for any increased cost and provides any additional benefits necessary
to give Executive the benefits provided hereunder.

                  (c) If during the Termination Period the employment of
Executive shall terminate pursuant to a Qualifying Termination, the Company
shall pay to Executive, within 30 days following his Date of Termination, a lump
sum payment in an amount equal to the sum of:

                        (1) The excess, if any, of (A) the present value of the
      benefits to which Executive would be entitled under Company's pension and
      retirement plans (qualified and nonqualified), if Executive had continued
      in the employ of the Company for an additional two (2) years following his
      Date of Termination earning during such two-year period the rate of base
      salary and bonus in effect as of his Date of Termination, over (B) the
      present value of the benefit to which Executive is actually entitled under
      such pension and retirement plans as of his Date of Termination;

                        (2) The present value of the Company contributions
      (including any allocations of securities of the Company) that would have
      been made under all Company savings programs (qualified and nonqualified),
      if Executive had continued in the employ of the Company for an additional
      two (2) years following his Date of Termination earning during such
      two-year period the rate of base salary and bonus in effect as of his Date
      of Termination, assuming that the Company would have made the maximum
      contributions permitted under such savings programs, and assuming, for
      purposes of determining the amount of any Company matching contributions,
      that Executive would have contributed the amount necessary to receive the
      maximum matching contributions available under such savings programs); and

                        (3) If contributions to the Company's employee stock
      ownership plan (the "ESOP") will continue after the Date of Termination,
      the value of the allocations that would have been made to Executive under
      the ESOP, if Executive had continued in the employ of the Company for an
      additional two (2) years following his Date of Termination, determined by
      multiplying (A) two (2) times the number of shares of stock of the Company
      (or, if applicable, the Surviving Person or the Parent Corporation, as
      such terms are defined below) allocated to the Executive's account under
      the ESOP for the last full calendar year

                                       36
<PAGE>
                                                                   Exhibit 10(i)

      prior to the Date of Termination by (B) the fair market value of one share
      of such stock on the Date of Termination.

For purposes of the preceding sentence, "present value" shall be determined as
of the Date of Termination and shall be calculated based upon a discount rate of
the base rate referred to in Section 7 and without reduction for mortality.

                  (d) If during the Termination Period the employment of
Executive shall terminate other than by reason of a Qualifying Termination, then
the Company shall pay to Executive within thirty (30) days following the Date of
Termination, a lump-sum cash amount equal to the sum of (1) Executive's base
salary through the Date of Termination and any bonus amounts which have become
payable, to the extent not theretofore paid or deferred, and (2) any accrued
vacation pay, in each case to the extent not theretofore paid. The Company may
make such additional payments, and provide such additional benefits, to
Executive as the Company and Executive may agree in writing.

            5. Certain Additional Payments by the Company. (a) Anything in this
Agreement to the contrary notwithstanding in the event it shall be determined
that any payment, award, benefit or distribution (or any acceleration of any
payment, award, benefit or distribution) by the Company (or any of its
affiliated entities) or any entity which effectuates a Change in Control (or any
of its affiliated entities) to or for the benefit of Executive (whether pursuant
to the terms of this Agreement or otherwise, but determined without regard to
any additional payments required under this Section 5) (the "Payments") would be
subject to the excise tax imposed by Section 4999 of the Internal Revenue Code
of 1986, as amended (the "Code"), or any interest or penalties are incurred by
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Company shall pay to Executive an additional payment (a
"Gross-Up Payment") in an amount such that after payment by Executive of all
taxes (including any Excise Tax) imposed upon the Gross-Up Payment Executive
retains an amount of the Gross-Up Payment equal to the sum of (1) the Excise Tax
imposed upon the Payments and (2) the product of any deductions disallowed
because of the inclusion of the Gross-up Payment in Executive's adjusted gross
income and the highest applicable marginal rate of federal income taxation for
the calendar year in which the Gross-up Payment is to be made. For purposes of
determining the amount of the Gross-up Payment, the Executive shall be deemed to
(1) pay federal income taxes at the highest marginal rates of federal income
taxation for the calendar year in which the Gross-up Payment is to be made, (2)
pay applicable state and local income taxes at the highest marginal rate of
taxation for the calendar year in which the Gross-up Payment is to be made, net
of the maximum reduction in federal income taxes which could be obtained from
deduction of such state and local taxes and (3) have otherwise allowable
deductions for federal income tax purposes at least equal to those which could
be disallowed because of the inclusion of the Gross-up Payment in the
Executive's adjusted gross income. Notwithstanding the foregoing provisions of
this Section 5(a), if it shall be determined that Executive is entitled to a
Gross-Up Payment, but that the Payments would not be subject to the Excise Tax
if the Payments were reduced by an amount that is less than 5% of the portion of
the

                                       37
<PAGE>
                                                                   Exhibit 10(i)

Payments that would be treated as "parachute payments" under Section 280G of the
Code, then the amounts payable to Executive under this Agreement shall be
reduced (but not below zero) to the maximum amount that could be paid to
Executive without giving rise to the Excise Tax (the "Safe Harbor Cap"), and no
Gross-Up Payment shall be made to Executive. The reduction of the amounts
payable hereunder, if applicable, shall be made by reducing first the payments
under Section 4(a)(2), unless an alternative method of reduction is elected by
Executive. For purposes of reducing the Payments to the Safe Harbor Cap, only
amounts payable under this Agreement (and no other Payments) shall be reduced.
If the reduction of the amounts payable hereunder would not result in a
reduction of the Payments to the Safe Harbor Cap, no amounts payable under this
Agreement shall be reduced pursuant to this provision.

                  (b) Subject to the provisions of Section 5(a), all
determinations required to be made under this Section 5, including whether and
when a Gross-Up Payment is required, the amount of such Gross-Up Payment, the
reduction of the Payments to the Safe Harbor Cap and the assumptions to be
utilized in arriving at such determinations, shall be made by the public
accounting firm that is retained by the Company as of the date immediately prior
to the Change in Control (the "Accounting Firm") which shall provide detailed
supporting calculations both to the Company and Executive within fifteen (15)
business days of the receipt of notice from the Company or the Executive that
there has been a Payment or such earlier time as is requested by the Company
(collectively, the "Determination"). In the event that the Accounting Firm is
serving as accountant or auditor for the individual, entity or group effecting
the Change in Control, Executive may appoint another nationally recognized
public accounting firm to make the determinations required hereunder (which
accounting firm shall then be referred to as the Accounting Firm hereunder). All
fees and expenses of the Accounting Firm shall be borne solely by the Company
and the Company shall enter into any agreement requested by the Accounting Firm
in connection with the performance of the services hereunder. The Gross-up
Payment under this Section 5 with respect to any Payments shall be made no later
than thirty (30) days following such Payment. If the Accounting Firm determines
that no Excise Tax is payable by Executive, it shall furnish Executive with a
written opinion to such effect and to the effect that failure to report the
Excise Tax, if any, on Executive's applicable federal income tax return will not
result in the imposition of a negligence or similar penalty. In the event the
Accounting Firm determines that the Payments shall be reduced to the Safe Harbor
Cap, it shall furnish Executive with a written opinion to such effect. The
Determination by the Accounting Firm shall be binding upon the Company and
Executive. As a result of the uncertainty in the application of Section 4999 of
the Code at the time of the Determination, it is possible that Gross-Up Payments
which will not have been made by the Company should have been made
("Underpayment") or Gross-up Payments are made by the Company which should not
have been made ("Overpayment"), consistent with the calculations required to be
made hereunder. In the event that the Executive thereafter is required to make
payment of any Excise Tax or additional Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such
Underpayment (together with interest at the rate provided in Section
1274(b)(2)(B) of the Code) shall be promptly paid by the Company to or for the
benefit of Executive. In the event the amount of the Gross-up Payment exceeds
the amount necessary to reimburse

                                       38
<PAGE>
                                                                   Exhibit 10(i)

the Executive for his Excise Tax, the Accounting Firm shall determine the amount
of the Overpayment that has been made and any such Overpayment (together with
interest at the rate provided in Section 1274(b)(2) of the Code) shall be
promptly paid by Executive (to the extent he has received a refund if the
applicable Excise Tax has been paid to the Internal Revenue Service) to or for
the benefit of the Company. Executive shall cooperate, to the extent his
expenses are reimbursed by the Company, with any reasonable requests by the
Company in connection with any contests or disputes with the Internal Revenue
Service in connection with the Excise Tax.

            6. Withholding Taxes. The Company may withhold from all payments due
to Executive (or his beneficiary or estate) hereunder all taxes which, by
applicable federal, state, local or other law, the Company is required to
withhold therefrom.

            7. Reimbursement of Expenses. If any contest or dispute shall arise
under this Agreement involving termination of Executive's employment with the
Company or involving the failure or refusal of the Company to perform fully in
accordance with the terms hereof, the Company shall reimburse Executive, on a
current basis, for all reasonable legal fees and expenses, if any, incurred by
Executive in connection with such contest or dispute (regardless of the result
thereof), together with interest in an amount equal to the base rate of Sterling
National Bank (or any successor) from time to time in effect, but in no event
higher than the maximum legal rate permissible under applicable law, such
interest to accrue from the date the Company receives Executive's statement for
such fees and expenses through the date of payment thereof by the Company,
regardless of whether or not Executive's claim is by a court of competent
jurisdiction/arbitration panel; provided, however, Executive shall be required
to pay any such amounts to the Company to the extent that a court/arbitration
panel issues a final and non-appealable order setting forth the determination
that the position taken by Executive was frivolous or advanced by Executive in
bad faith.

            8. Scope of Agreement. Nothing in this Agreement shall be deemed to
entitle Executive to continued employment with the Company or its Subsidiaries,
and if Executive's employment with the Company shall terminate prior to a Change
in Control, Executive shall have no further rights under this Agreement (except
as otherwise provided hereunder); provided, however, that after termination of
Executive's employment during the Termination Period shall be subject to all of
the provisions of this Agreement.

            9. Successors; Binding Agreement. (a) This Agreement shall not be
terminated by any reorganization, merger or consolidation involving the Company
(each, a "Business Combination"). In the event of any Business Combination, the
provisions of this Agreement shall be binding upon the Person resulting from
such Business Combination (the "Surviving Person"), and the Surviving Person
shall be treated as the Company hereunder.

                  (b) The Company agrees that in connection with any Business
Combination, it will cause any successor entity to the Company unconditionally
to

                                       39
<PAGE>
                                                                   Exhibit 10(i)

assume (and, if applicable, the ultimate parent entity that directly or
indirectly has beneficial ownership of a majority of the voting securities
eligible to elect directors of the successor entity (the "Parent Corporation")
to guarantee), by written instrument delivered to Executive (or his beneficiary
or estate), all of the obligations of the Company hereunder. Failure of the
Company to obtain such assumption and guarantee prior to the effectiveness of
any such Business Combination that constitutes a Change in Control, shall be a
breach of this Agreement and shall constitute Good Reason hereunder and shall
entitle Executive to compensation and other benefits from the Company in the
same amount and on the same terms as Executive would be entitled hereunder if
Executive's employment were terminated following a Change in Control by reason
of a Qualifying Termination. For purposes of implementing the foregoing, the
date on which any such Business Combination becomes effective shall be deemed
the date Good Reason occurs, and shall be the Date of Termination if requested
by Executive.

                  (c) This Agreement shall inure to the benefit of and be
enforceable by Executive's personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. if
Executive shall die while any amounts would be payable to Executive hereunder
had Executive continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to such
person or persons appointed in writing by Executive to receive such amounts or,
if no person is so appointed, to Executive's estate.

            10. Notice. (a) For purposes of this Agreement all notices and other
communications required or permitted hereunder shall be in writing and shall be
deemed to have been duly given (1) on the date of delivery if delivered
personally or by telefacsimile upon confirmation of receipt, (2) on the first
business day following the date of dispatch if delivered by a recognized
next-day courier service or (3) five days after deposit in the United States
mail, certified and return receipt requested, postage prepaid. All such notices
and communications shall be delivered as set forth below.

                  If to the Executive:

                  -----------------------
                  ----------------
                  ---------, --------  -----

                  If to the Company:

                  Sterling Bancorp
                  650 Fifth Avenue, Fourth Floor
                  New York, N.Y.  10019
                  Attn:  Chairman of the Board

                  with a copy addressed to the attention of the General
                  Counsel of the Company at the above address.

                                       40
<PAGE>
                                                                   Exhibit 10(i)

or to such other address as either party may have furnished to the other in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

                  (b) A written notice of Executive's Date of Termination by the
Company or Executive, as the case may be, to the other, shall (1) indicate the
specific termination provision in this Agreement relied upon, (2) to the extent
applicable, set forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of Executive's employment under the provision
so indicated and (3) specify the termination date (which date shall be not less
than fifteen (15), if termination is by the Company for Disability) nor more
than sixty (60) days after the giving of such notice). The failure by Executive
or the Company to set forth in such notice any fact or circumstance which
contributes to a showing of Good Reason or Cause shall not waive any right of
Executive or the Company hereunder or preclude Executive or the Company from
asserting such fact or circumstance in enforcing Executive's or the Company's
rights hereunder.

            11. Full Settlement; Resolution of Disputes. In the event of a
Qualifying Termination, the Company's obligation to make any payments provided
for in this Agreement and otherwise to perform its obligations hereunder shall
be in lieu and in full settlement of all other severance payments to Executive
under any other severance or employment agreement between Executive and the
Company. The Company's obligations hereunder shall not be affected by any
set-off, counterclaim, recoupment defense or other claim, right or action which
the Company may have against Executive or others. In no event shall Executive be
obligated to seek other employment or take other action by way of mitigation of
the amounts payable to Executive under any of the provisions of this Agreement
and, except as provided in Section 4(b), such amounts shall not be reduced
whether or not Executive obtains other employment.

            12. Employment with Subsidiaries. Employment with the Company for
purposes of this Agreement shall include employment with any Subsidiary.

            13. Survival. The respective obligations and benefits afforded to
the Company and Executive as provided in Sections 4 (to the extent that payments
or benefits are owed as a result of a termination of employment that occurs
during the term of this Agreement), 5 (to the extent that Payments are made to
Executive as a result of a Change in Control that occurs during the term of this
Agreement), 6, 7, 9(c) and 11 shall survive the termination of this Agreement.

            14. GOVERNING LAW; VALIDITY. THE INTERPRETATION, CONSTRUCTION AND
PERFORMANCE OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD To THE
PRINCIPLE OF CONFLICTS OF LAWS. THE INVALIDITY OR UNENFORCEABILITY OF ANY
PROVISION OF THIS AGREEMENT SHALL NOT AFFECT THE VALIDITY OR ENFORCEABILITY OF
ANY OTHER PROVISION

                                       41
<PAGE>
                                                                   Exhibit 10(i)

OF THIS AGREEMENT, WHICH OTHER PROVISIONS SHALL REMAIN IN FULL FORCE AND EFFECT.

            15. Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed to be an original and all of which together shall
constitute one, and the same instrument.

            16. Miscellaneous. No provision of this Agreement may be modified or
waived unless such modification or waiver is agreed to in writing and signed by
Executive and by a duly authorized officer of the Company. No waiver by either
party hereto at any time of any breach by the other party hereto of, or
compliance with, any condition or provision of this Agreement to be performed by
such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time. Failure by Executive
or the Company to insist upon strict compliance with any provision of this
Agreement or to assert any right Executive or the Company may have hereunder,
including without limitation, the right of Executive to terminate employment for
Good Reason, shall not be deemed to be a waiver of such provision or right or
any other provision or right of this Agreement. Except as otherwise specifically
provided herein, the rights of, and benefits payable to, Executive, his estate
or his beneficiaries pursuant to this Agreement are in addition to any rights
of, or benefits payable to, Executive, his estate or his beneficiaries under any
other employee benefit plan or compensation program of the Company.

            IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed by a duly authorized officer of the Company and Executive has executed
this Agreement as of the day and year first above written.

                                    STERLING BANCORP

                                    By: /s/  LOUIS J. CAPPELLI
                                        -----------------------------------
                                        Name:  Louis J. Cappelli
                                        Title: Chairman of the Board

                                    /s/ EXECUTIVE
                                    ---------------------------------------
                                        Executive

                                       42
<PAGE>
                                                                   Exhibit 10(i)

                                   APPENDIX A

                             (CERTAIN DEFINED TERMS)

            As used in the Agreement the following terms shall have the
respective meanings set forth below:

            1. "Board" means the Board of Directors of the Company.

            2. "Bonus Amount" means the highest annual bonus earned by Executive
from the Company (and/or its affiliates) during the last three (3) completed
fiscal years of the Company immediately preceding Executive's Date of
Termination (annualized in the event Executive was not employed by the Company
(or its affiliates) for the whole of any such fiscal year).

            3. "Cause" means (a) the willful and continued failure of Executive
to perform substantially his duties with the Company (other than any such
failure resulting from Executive's incapacity due to physical or mental illness
or any such failure subsequent to Executive being delivered a Notice of
Termination without Cause by the Company or delivering a Notice of Termination
for Good Reason to the Company) after a written demand for substantial
performance is delivered to Executive by the Board which specifically identifies
the manner in which the Board believes that Executive has not substantially
performed Executive's duties, (b) the willful engaging by Executive in illegal
conduct or gross misconduct which is demonstrably and materially injurious to
the Company or its affiliates or (c) the final, non-appealable conviction of
Executive for a criminal violation of Title 12 or 18 of the United States Code.
For purpose of this definition, no act or failure to act by Executive shall be
considered "willful" unless done or omitted to be done by Executive in bad faith
and without reasonable belief that Executive's action or omission was in the
best interests of the Company or its affiliates. Any act, or failure to act (1)
based upon authority given pursuant to a resolution duly adopted by the Board,
(2) based upon the advice of counsel for the Company or (3) based upon the
instructions of the Company's chief executive officer or another senior officer
of the Company shall be conclusively presumed to be done, or omitted to be done,
by Executive in good faith and in the best interests of the Company. For purpose
of clauses (a) and (b) of the first sentence of this definition, "cause" shall
not exist unless and until the Company has delivered to Executive a copy of a
resolution duly adopted by three-quarters (3/4) of the entire Board (excluding
Executive if Executive is a Board member) at a meeting of the Board called and
held for such purpose (after reasonable notice to Executive and an opportunity
for Executive, together with counsel, to be heard before the Board), finding
that in the good faith opinion of the Board an event set forth in clauses (a) or
(c) has occurred and specifying the particulars thereof in detail. The Company
must notify Executive of any event constituting Cause within sixty (60) days
following the Company's knowledge of its existence or such event shall not
constitute Cause under this Agreement.

                                       43
<PAGE>
                                                                   Exhibit 10(i)

            4. "Change in Control" means the occurrence of any one of the
following events:

                  (a) The acquisition by any individual, entity or group (within
the meaning of section 13(d)(3) or 14(d)(1) of the Securities Exchange Act of
1934 (the "Exchange Act")) (a "Person") of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of voting securities
which together with the beneficial ownership of voting securities theretofore
held comprises 20% or more of either (1) the then outstanding common shares of
the Company (the "Outstanding Company Common Shares") or (2) the combined voting
power of the then outstanding voting securities of the Company entitled to vote
generally in the election of directors (the "Outstanding Company Voting
Securities"); provided, however, that the following acquisitions will not
constitute a Change in Control: (1) any acquisition directly from the Company
(other than acquisition by virtue of the exercise of a conversion privilege),
(2) any acquisition by the Company, (3) any acquisition by any employee benefit
plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company or (4) any acquisition by any corporation
pursuant to a reorganization, merger or consolidation, if, following such
reorganization, merger or consolidation, the conditions described in clauses
(1), (2) and (3) of subsection (c) of this definition are satisfied;

                  (b) Individuals who, as of the date hereof, constitute the
Board (the "Incumbent Board") cease for any reason to constitute at least
two-thirds of the Board; provided, however, that any individual becoming a
director subsequent to the date hereof whose election, or nomination for
election by the shareholders of the Company, was approved by a vote of at least
two-thirds of the Directors then comprising the Incumbent Board will be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of either an actual or threatened election contest (as
such terms are used in Rule 14a-11 of Regulations 14A promulgated under the
Exchange Act) or other actual or threatened solicitation of proxies or consents
by or on behalf of a Person other than the Board;

                  (c) A reorganization, merger or consolidation of the Company,
in each case, unless, following such reorganization, merger or consolidation,
(1) more than 60% of, respectively, the then outstanding shares of common stock
of the corporation resulting from such reorganization, merger or consolidation
and the combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of Directors is then
beneficially owned, directly or indirectly, by all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the
outstanding Company Common Shares and Outstanding Company Voting Securities
immediately prior to such reorganization, merger or consolidation, in
substantially the same proportions as their ownership, immediately prior to such
reorganization, merger or consolidation, in substantially the same proportions
as their ownership, immediately prior to such reorganization, merger or
consolidation, of the Outstanding Company Common Shares and Outstanding Company
Voting Securities, as the case may be, (2) no Person (excluding the Company, any

                                       44
<PAGE>
                                                                   Exhibit 10(i)

employee benefit plan (or related trust) of the Company or such corporation
resulting from such reorganization, merger or consolidation) beneficially owns,
directly or indirectly, (10% or more of, respectively, the then outstanding
shares of common stock of the corporation resulting from such reorganization,
merger or consolidation or the combined voting power of the then outstanding
voting securities of such corporation, entitled to vote generally in the
election of directors and (3) at least two-thirds of the members of the board of
directors of the corporation resulting from such reorganization, merger or
consolidation were members of the Incumbent Board at the time of the execution
of the initial agreement providing for such reorganization, merger or
consolidation;

                  (d) Approval by the shareholders of the Company of a complete
liquidation or dissolution of the Company; or

                  (e) The sale or other disposition of all or substantially all
of the assets or deposits of the Company, other than to a corporation, with
respect to which following such sale or other disposition, (A) more than 60% of,
respectively, the then outstanding shares of common stock of such corporation
and the combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors is then
beneficially owned, directly or indirectly, by all or substantially an of the
individuals and entities who were the beneficial owners, respectively, of the
Outstanding Company Common Shares and Outstanding Company Voting Securities
immediately prior to such sale or other disposition of the Outstanding Company
Common Stock and Outstanding Company Voting Securities, as the case may be, (B)
no Person (excluding the Company and any employee benefit plan (or related
trust) of the company or such corporation) beneficially owns, directly or
indirectly, 20% or more of, respectively, the then outstanding shares of common
stock of such corporation and the combined voting power of the then outstanding
voting securities of such corporation entitled to vote generally in the election
of directors and (C) at least two-thirds of the members of the board of
directors of such corporation were members of the Incumbent Board at the time of
the execution of the initial agreement or action of the Board providing for such
sale or other disposition of assets of the Company; or

                  (f) Reorganization, merger or consolidation of Sterling
National Bank or sale or other disposition of all or substantially all of the
assets or deposits of Sterling National Bank unless, in the case of a
reorganization, merger or consolidation, the resulting entity is wholly owned by
a corporation meeting the following requirements or, in the case of a sale or
disposition, the sale or disposition is a to a corporation meeting the following
requirements (in each case after giving effect to the reorganization, merger,
consolidation, sale or disposition and any related transactions): (A) more than
two-thirds of, respectively, the then outstanding shares of common stock of such
corporation and the combined voting power of the then outstanding voting
securities of such corporation entitled to vote generally in the election of
directors is then beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Shares and Outstanding
Company Voting Securities immediately prior to such reorganization, merger,
consolidation, sale or disposition, as

                                       45
<PAGE>
                                                                   Exhibit 10(i)

the case may be, (B) no Person (excluding the Company and any employee benefit
plan (or related trust) of the Company or such corporation) beneficially owns,
directly or indirectly, 20% or more of, respectively, the then outstanding
shares of common stock of such corporation and the combined voting power of the
then outstanding voting securities of such corporation entitled to vote
generally in the election of directors and (C) at least two-thirds of the
members of the board of directors of such corporation were members of the
Incumbent Board at the time of the execution of the initial agreement or action
of the Board providing for such reorganization, merger, consolidation, sale or
disposition.

            5. "Date of Termination" means (a) the effective date on which
Executive's employment by the Company terminates as specified in a prior written
notice by the Company or Executive, as the case may be, to the other, delivered
pursuant to Section 10 or (b) if Executive's employment by the Company
terminates by reason of death, the date of death of Executive.

            6. "Disability" means termination of Executives employment by the
Company due to Executive's absence from Executive's duties with the Company on a
full-time basis for at least one hundred eighty (180) consecutive days as a
result of Executive's incapacity due to physical or mental illness.

            7. "Good Reason" means, without Executive's express written consent,
the occurrence of any of the following events after a Change in Control:

                  (a) (1) Any change in the duties or responsibilities
(including reporting responsibilities) of Executive that is inconsistent in any
material and adverse respect with Executive's position(s), duties,
responsibilities or status with the Company immediately prior to such Change in
Control (including any material and adverse diminution of such duties or
responsibilities) or (2) a material and adverse change in Executive's titles or
offices (including, if applicable, membership on the Board) with the, Company or
its affiliates as in effect immediately prior to such Change in Control;

                  (b) A reduction by the Company in Executive's rate of annual
base salary, annual bonus or annual bonus opportunity (including any material
and adverse change in the formula for such annual bonus or bonus opportunity) as
in effect immediately prior to such Change in Control or as the same may be
increased from time to time thereafter;

                  (c) Any requirement of the Company that Executive (1) be based
anywhere other than the Company's principal executive offices (or the principal
executive office of a subsidiary or division of the Company, if Executive is
based at such office immediately prior to such Change in Control) or more than
ten (10) miles from the office where Executive is located at the time of the
Change in Control or (2) travel on Company business to an extent substantially
greater than the travel obligations of Executive immediately prior to such
Change in Control;

                                       46
<PAGE>
                                                                   Exhibit 10(i)

                  (d) The failure of the Company to (1) continue in effect any
employee, benefit plan, compensation plan, welfare benefit plan or material
fringe benefit plan in which Executive is participating immediately prior to
such Change in Control or the taking of any action by the Company which would
adversely affect Executive's participation in or reduce Executive's benefits
under any such plan, unless Executive is permitted to participate in other plans
providing Executive with substantially equivalent benefits (at substantially
equivalent cost with respect to welfare benefit plans), or (2) provide Executive
with paid vacation in accordance with the most favorable vacation policies of
the Company and its affiliated companies as in effect for Executive immediately
prior to such Change in Control, including the crediting of all service for
which Executive had been credited under such vacation policies prior to the
Change in Control;

                  (e) Any refusal by the Company to continue to permit Executive
to engage in activities not directly related to the business of the Company
which Executive was permitted to engage in prior to the Change in Control;

                  (f) Any purported termination of Executive's employment which
is not effectuated pursuant to Section 10(b) (and which will not constitute a
termination hereunder); or

                  (g) The failure of the Company to obtain the assumption (and,
if applicable, guarantee) agreement from any successor (and Parent Corporation)
as contemplated in Section 9(b).

            Notwithstanding anything herein to the contrary, termination of
employment by Executive for any reason during the 30-day period commencing one
(1) year after the date of a Change in Control shall constitute Good Reason.

            An isolated, insubstantial and inadvertent action taken in good
faith and which is remedied by the Company within ten (10) days after receipt of
notice thereof given by Executive shall not constitute Good Reason - Executive's
right to terminate employment for Good Reason shall not be affected by
Executive's incapacities due to mental or physical illness and Executive's
continued employment shall not constitute consent to, or a waiver of rights with
respect to, any event or condition constituting Good Reason.

            8. "Qualifying Termination" means a termination of Executive's
employment (a) by the Company other than for Cause or (b) by Executive for Good
Reason. Termination of Executive's employment on account of death, Disability or
Retirement shall not be treated as a Qualifying Termination, unless such death
or Disability shall occur during the 30-day period referred to in the second
paragraph of the definition of "Good Reason" (in which case it will constitute a
Qualifying Termination).

            9. "Retirement" means Executive's retirement (not including any
mandatory early retirement) in accordance with the Company's retirement policy
generally applicable to its salaried employees (if any), as in effect
immediately prior to

                                       47
<PAGE>
                                                                   Exhibit 10(i)

the Change in Control, or in accordance with any retirement arrangement
established with respect to Executive with Executive's written consent.

            10. "Subsidiary" means any corporation or other entity in which the
Company has a direct or indirect ownership interest of 50% or more of the total
combined voting power of the then outstanding securities or interests of such
corporation or other entity entitled to vote generally in the election of
directors or in which the Company has the right to receive 50% or more of the
distribution of profits or 50% of the assets on liquidation or dissolution.
consent.

            11. "Termination Period" means the period of time beginning with a
Change in Control and ending two (2) years following such Change in Control.

                                       48EX-10.16: CREDIT AGREEMENT

 

$175,000,000

CREDIT AGREEMENT,

Dated as of July 2, 2002

by and among

BOWNE & CO., INC.,

as the Parent Borrower,

THE SUBSIDIARIES OF THE PARENT BORROWER FROM

TIME TO TIME PARTY HERETO,

as Subsidiary Borrowers,

THE LENDING INSTITUTIONS FROM TIME TO TIME

PARTIES HERETO AS LISTED ON SCHEDULE 1 HERETO,

as the Lenders,

FLEET NATIONAL BANK,

as Agent,

JPMORGAN CHASE BANK,

as Documentation Agent,

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Syndication Agent,

and

FLEET SECURITIES, INC.,

as Arranger

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	PAGE NO.
	 	 	 	 	

	1. DEFINITIONS AND PRINCIPLES OF CONSTRUCTION
	 	 	1	 
	
	
	
	

	 	1.1. DEFINITIONS
	 	 	1	 
	
	
	
	

	 	1.2. PRINCIPLES OF CONSTRUCTION
	 	 	22	 
	
	
	
	

	2. AMOUNT AND TERMS OF LOANS
	 	 	22	 
	
	
	
	

	 	2.1. REVOLVING CREDIT LOANS
	 	 	22	 
	
	
	
	

	 	 	(a) Agreement to Make Revolving Credit Loans
	 	 	22	 
	
	
	
	

	 	 	(b) Types of Revolving Credit Loans
	 	 	23	 
	
	
	
	

	 	2.2. MINIMUM AMOUNT OF EACH BORROWING AND MAXIMUM AMOUNT OF FIXED RATE LOANS
	 	 	23	 
	
	
	
	

	 	 	(a) Minimum Amounts of Each Borrowing
	 	 	23	 
	
	
	
	

	 	 	(b) Maximum Number of Eurodollar Alternate and Currency Advances
	 	 	23	 
	
	
	
	

	 	2.3. BORROWING REQUEST — REVOLVING CREDIT LOANS
	 	 	24	 
	
	
	
	

	 	2.4. DISBURSEMENT OF FUNDS
	 	 	24	 
	
	
	
	

	 	 	(a) Revolving Credit Loans
	 	 	24	 
	
	
	
	

	 	 	(b) Failure to Fund
	 	 	24	 
	
	
	
	

	 	 	(c) Borrower Accounts
	 	 	25	 
	
	
	
	

	 	2.5. PAYMENTS
	 	 	25	 
	
	
	
	

	 	 	(a) Loans and Fees
	 	 	25	 
	
	
	
	

	 	 	(b) Late Payments
	 	 	25	 
	
	
	
	

	 	 	(c) Alternate Currencies
	 	 	26	 
	
	
	
	

	 	 	(d) Extension of Due Dates
	 	 	26	 
	
	
	
	

	 	2.6. TERMINATION OR REDUCTION OF COMMITMENTS
	 	 	26	 
	
	
	
	

	 	 	(a) Voluntary Reductions
	 	 	26	 
	
	
	
	

	 	 	(b) Mandatory Reduction
	 	 	26	 
	
	
	
	

	 	 	(c) In General
	 	 	26	 
	
	
	
	

	 	2.7. PREPAYMENTS OF THE LOANS
	 	 	26	 
	
	
	
	

	 	 	(a) Voluntary Prepayments
	 	 	26	 
	
	
	
	

	 	 	(b) Mandatory Prepayments
	 	 	27	 
	
	
	
	

	 	 	(c) In General
	 	 	27	 
	
	
	
	

	 	2.8. USE OF PROCEEDS
	 	 	27	 
	
	
	
	

	 	2.9. RECORDS
	 	 	27	 
	
	
	
	

	 	 	(a) Lender’s Records
	 	 	27	 
	
	
	
	

	 	 	(b) Agent’s Records
	 	 	28	 
	
	
	
	

	 	 	(c) Prima Facie Evidence
	 	 	28	 
	
	
	
	

	 	 	(d) Notes
	 	 	28	 
	
	
	
	

	 	2.10. ADDITIONAL ALTERNATE CURRENCIES
	 	 	28	 
	
	
	
	

	 	2.11. SWINGLINE LOANS
	 	 	28	 
	
	
	
	

	 	 	(a) Swingline Loans
	 	 	28	 
	
	
	
	

	 	 	(b) Procedure for Borrowing Swingline Loans
	 	 	28	 
	
	
	
	

	 	 	(c) Interest
	 	 	29	 
	
	
	
	

	 	 	(d) Swingline Loan Amount, Etc.
	 	 	29	 
	
	
	
	

	 	 	(e) Repayment and Participation of Swingline Loans
	 	 	29	 
	
	
	
	

	 	2.12. INCREASE OF COMMITMENTS
	 	 	30	 
	
	
	
	

	 	2.13. ADDITION AND REMOVAL OF SUBSIDIARY BORROWERS
	 	 	31	 
	
	
	
	

	 	 	(a) Addition of Subsidiary Borrowers
	 	 	31	 
	
	
	
	

	 	 	(b) Removal of Subsidiary Borrowers
	 	 	32	 

i

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	PAGE NO.
	 	 	 	 	

	
	
	
	

	3. INTEREST, FEES, CONVERSIONS AND YIELD PROTECTIONS
	 	 	32	 
	
	
	
	

	 	3.1. INTEREST RATES AND PAYMENT DATES
	 	 	32	 
	
	
	
	

	 	 	(a) Prior to Maturity
	 	 	32	 
	
	
	
	

	 	 	(b) Default Rate
	 	 	32	 
	
	
	
	

	 	 	(c) In General
	 	 	32	 
	
	
	
	

	 	 	(d) Substitution of Reference Lender
	 	 	33	 
	
	
	
	

	 	3.2. FEES
	 	 	33	 
	
	
	
	

	 	 	(a) Facility Fee
	 	 	33	 
	
	
	
	

	 	 	(b) Agent’s Fees
	 	 	33	 
	
	
	
	

	 	3.3. CONVERSIONS
	 	 	33	 
	
	
	
	

	 	 	(a) In General
	 	 	33	 
	
	
	
	

	 	 	(b) Conversions During an Event of Default
	 	 	34	 
	
	
	
	

	 	 	(c) Effecting Conversions
	 	 	34	 
	
	
	
	

	 	 	(d) Failure to Elect Conversion
	 	 	34	 
	
	
	
	

	 	3.4. INDEMNIFICATION FOR LOSS
	 	 	35	 
	
	
	
	

	 	3.5. CAPITAL ADEQUACY
	 	 	35	 
	
	
	
	

	 	3.6. REIMBURSEMENT FOR INCREASED COSTS
	 	 	36	 
	
	
	
	

	 	3.7. ILLEGALITY OF FUNDING
	 	 	36	 
	
	
	
	

	 	3.8. SUBSTITUTED INTEREST RATE
	 	 	37	 
	
	
	
	

	 	3.9. TAXES
	 	 	37	 
	
	
	
	

	 	 	(a) Payments to Be Free and Clear
	 	 	37	 
	
	
	
	

	 	 	(b) Other Indemnified Taxes
	 	 	38	 
	
	
	
	

	 	 	(c) U.S. Tax Certificates
	 	 	38	 
	
	
	
	

	 	 	(d) Other Tax Certificates
	 	 	39	 
	
	
	
	

	 	 	(e) Refunds
	 	 	39	 
	
	
	
	

	 	 	(f) Other Taxes
	 	 	39	 
	
	
	
	

	 	3.10. OPTION TO FUND
	 	 	39	 
	
	
	
	

	 	3.11. REPLACEMENT OF LENDERS
	 	 	40	 
	
	
	
	

	 	3.12. CHANGES OF LENDING OFFICES
	 	 	40	 
	
	
	
	

	 	 	(a) Borrower’s Request
	 	 	40	 
	
	
	
	

	 	 	(b) Lender’s Right
	 	 	41	 
	
	
	
	

	4. REPRESENTATIONS AND WARRANTIES
	 	 	41	 
	
	
	
	

	 	4.1. SUBSIDIARIES; JURISDICTIONS
	 	 	41	 
	
	
	
	

	 	4.2. EXISTENCE AND POWER
	 	 	41	 
	
	
	
	

	 	4.3. AUTHORITY AND EXECUTION
	 	 	42	 
	
	
	
	

	 	4.4. BINDING AGREEMENT
	 	 	42	 
	
	
	
	

	 	4.5. LITIGATION
	 	 	42	 
	
	
	
	

	 	4.6. REQUIRED CONSENTS
	 	 	42	 
	
	
	
	

	 	4.7. ABSENCE OF DEFAULTS; NO CONFLICTING AGREEMENTS
	 	 	42	 
	
	
	
	

	 	4.8. COMPLIANCE WITH APPLICABLE LAWS
	 	 	43	 
	
	
	
	

	 	4.9. TAXES
	 	 	43	 
	
	
	
	

	 	4.10. GOVERNMENTAL REGULATIONS
	 	 	43	 
	
	
	
	

	 	4.11. FEDERAL REGULATIONS; USE OF LOAN PROCEEDS
	 	 	43	 
	
	
	
	

	 	4.12. PLANS
	 	 	44	 
	
	
	
	

	 	4.13. FINANCIAL STATEMENTS
	 	 	44	 
	
	
	
	

	 	4.14. PROPERTY
	 	 	44	 
	
	
	
	

	 	4.15. AUTHORIZATIONS
	 	 	44	 

ii

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	PAGE NO.
	 	 	 	 	

	
	
	
	

	 	4.16. ENVIRONMENTAL MATTERS
	 	 	45	 
	
	
	
	

	 	4.17. FULL DISCLOSURE
	 	 	45	 
	
	
	
	

	 	4.18. EXISTING INDEBTEDNESS; LIENS
	 	 	46	 
	
	
	
	

	 	 	(a) Existing Indebtedness
	 	 	46	 
	
	
	
	

	 	 	(b) Liens
	 	 	46	 
	
	
	
	

	 	4.19. LOANS RANK PARI PASSU
	 	 	46	 
	
	
	
	

	 	4.20. GUARANTOR SUBSIDIARIES
	 	 	46	 
	
	
	
	

	 	4.21. BGS
	 	 	46	 
	
	
	
	

	5. CONDITIONS TO FIRST LOANS
	 	 	46	 
	
	
	
	

	 	5.1. EVIDENCE OF ACTION
	 	 	47	 
	
	
	
	

	 	5.2. ABSENCE OF LITIGATION
	 	 	47	 
	
	
	
	

	 	5.3. APPROVALS AND CONSENTS
	 	 	47	 
	
	
	
	

	 	5.4. OPINION OF COUNSEL TO CREDIT PARTIES
	 	 	47	 
	
	
	
	

	 	5.5. OPINION OF SPECIAL COUNSEL
	 	 	48	 
	
	
	
	

	 	5.6. FEES OF AGENT AND LENDERS
	 	 	48	 
	
	
	
	

	 	5.7. FEES AND EXPENSES OF SPECIAL COUNSEL
	 	 	48	 
	
	
	
	

	 	5.8. COUNTERPARTS TO AGREEMENT
	 	 	48	 
	
	
	
	

	 	5.9. NOTES
	 	 	48	 
	
	
	
	

	 	5.10. EXISTING LOAN AGREEMENT
	 	 	48	 
	
	
	
	

	 	5.11. COMPLIANCE CERTIFICATE
	 	 	48	 
	
	
	
	

	 	5.12. GUARANTIES
	 	 	48	 
	
	
	
	

	 	5.13. MATERIAL ADVERSE CHANGE IN FINANCIAL CONDITION
	 	 	49	 
	
	
	
	

	 	5.14. PROCEEDINGS AND DOCUMENTS
	 	 	49	 
	
	
	
	

	 	5.15. ADDITIONAL SUBSIDIARY INFORMATION
	 	 	49	 
	
	
	
	

	 	5.16. NOTE PURCHASE AGREEMENT
	 	 	49	 
	
	
	
	

	6. CONDITIONS OF LENDING — ALL LOANS
	 	 	49	 
	
	
	
	

	 	6.1. COMPLIANCE
	 	 	49	 
	
	
	
	

	 	6.2. BORROWING REQUEST
	 	 	50	 
	
	
	
	

	 	6.3. EXCHANGE LIMITATION
	 	 	50	 
	
	
	
	

	7. AFFIRMATIVE COVENANTS
	 	 	50	 
	
	
	
	

	 	7.1. FINANCIAL STATEMENTS AND INFORMATION
	 	 	50	 
	
	
	
	

	 	 	(a) Compliance Certificate
	 	 	50	 
	
	
	
	

	 	 	(b) Quarterly Statements
	 	 	50	 
	
	
	
	

	 	 	(c) Annual Statements
	 	 	51	 
	
	
	
	

	 	 	(d) SEC and Other Reports
	 	 	52	 
	
	
	
	

	 	 	(e) Projections; Annual Business Plans
	 	 	52	 
	
	
	
	

	 	 	(f) Management Letters
	 	 	52	 
	
	
	
	

	 	 	(g) Notice of Shareholder and Analyst Conference Calls
	 	 	52	 
	
	
	
	

	 	 	(h) Additional Subsidiary Information
	 	 	52	 
	
	
	
	

	 	7.2. CERTIFICATES; OTHER INFORMATION
	 	 	53	 
	
	
	
	

	 	 	(a) Notice of Certain Events
	 	 	53	 
	
	
	
	

	 	 	(b) Other Information
	 	 	54	 
	
	
	
	

	 	7.3. LEGAL EXISTENCE
	 	 	54	 
	
	
	
	

	 	7.4. TAXES
	 	 	55	 
	
	
	
	

	 	7.5. INSURANCE
	 	 	55	 
	
	
	
	

	 	7.6. CONDITION OF PROPERTY
	 	 	55	 

iii

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	PAGE NO.
	 	 	 	 	

	
	
	
	

	 	7.7. OBSERVANCE OF LEGAL REQUIREMENTS
	 	 	55	 
	
	
	
	

	 	7.8. INSPECTION OF PROPERTY; BOOKS AND RECORDS; DISCUSSIONS
	 	 	55	 
	
	
	
	

	 	7.9. NATURE OF BUSINESS
	 	 	56	 
	
	
	
	

	 	7.10. NOTES TO RANK PARI PASSU
	 	 	56	 
	
	
	
	

	 	7.11. ADDITIONAL GUARANTORS
	 	 	56	 
	
	
	
	

	8. NEGATIVE COVENANTS
	 	 	56	 
	
	
	
	

	 	8.1. CONSOLIDATED SHAREHOLDERS’ EQUITY
	 	 	56	 
	
	
	
	

	 	8.2. FIXED CHARGE COVERAGE RATIO
	 	 	57	 
	
	
	
	

	 	8.3. LEVERAGE RATIO
	 	 	57	 
	
	
	
	

	 	8.4. RATIO OF INDEBTEDNESS TO CAPITALIZATION
	 	 	57	 
	
	
	
	

	 	8.5. INDEBTEDNESS
	 	 	57	 
	
	
	
	

	 	8.6. LIENS
	 	 	58	 
	
	
	
	

	 	8.7. CONSOLIDATIONS AND MERGERS
	 	 	59	 
	
	
	
	

	 	8.8. ACQUISITIONS
	 	 	60	 
	
	
	
	

	 	8.9. DISPOSITIONS
	 	 	60	 
	
	
	
	

	 	8.10. INVESTMENTS
	 	 	61	 
	
	
	
	

	 	8.11. TRANSACTIONS WITH AFFILIATES
	 	 	62	 
	
	
	
	

	 	8.12. LIMITATION ON NEGATIVE PLEDGE CLAUSES
	 	 	62	 
	
	
	
	

	 	8.13. RESTRICTED DISTRIBUTIONS
	 	 	62	 
	
	
	
	

	 	8.14. RESTRICTIONS AFFECTING SUBSIDIARIES
	 	 	62	 
	
	
	
	

	 	8.15. CONTINGENT OBLIGATIONS
	 	 	63	 
	
	
	
	

	 	8.16. PAYMENTS AND PREPAYMENTS OF SUBORDINATED INDEBTEDNESS
	 	 	63	 
	
	
	
	

	9. DEFAULT
	 	 	63	 
	
	
	
	

	 	9.1. EVENTS OF DEFAULT
	 	 	63	 
	
	
	
	

	 	 	(a) Failure to Pay Principal
	 	 	63	 
	
	
	
	

	 	 	(b) Failure to Pay Interest, Fees and Other Amounts
	 	 	63	 
	
	
	
	

	 	 	(c) Failure to Perform Certain Covenants
	 	 	63	 
	
	
	
	

	 	 	(d) Other Covenants
	 	 	64	 
	
	
	
	

	 	 	(e) Misrepresentations
	 	 	64	 
	
	
	
	

	 	 	(f) Cross-Default
	 	 	64	 
	
	
	
	

	 	 	(g) Insolvency
	 	 	64	 
	
	
	
	

	 	 	(h) Involuntary Proceedings
	 	 	65	 
	
	
	
	

	 	 	(i) Judgments
	 	 	65	 
	
	
	
	

	 	 	(j) Enforceability of Loan Documents
	 	 	65	 
	
	
	
	

	 	 	(k) ERISA
	 	 	65	 
	
	
	
	

	 	 	(l) Change of Control
	 	 	65	 
	
	
	
	

	 	9.2. CONTRACT REMEDIES
	 	 	65	 
	
	
	
	

	 	 	(a) Termination of Commitment; Acceleration
	 	 	65	 
	
	
	
	

	 	 	(b) Application of Proceeds
	 	 	66	 
	
	
	
	

	10. THE AGENT
	 	 	67	 
	
	
	
	

	 	10.1. APPOINTMENT
	 	 	67	 
	
	
	
	

	 	10.2. DELEGATION OF DUTIES
	 	 	67	 
	
	
	
	

	 	10.3. EXCULPATORY PROVISIONS
	 	 	67	 
	
	
	
	

	 	10.4. RELIANCE BY THE AGENT
	 	 	68	 
	
	
	
	

	 	10.5. NOTICE OF DEFAULT
	 	 	68	 
	
	
	
	

	 	10.6. NON- RELIANCE ON THE AGENTS AND OTHER LENDERS
	 	 	69	 

iv

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	PAGE NO.
	 	 	 	 	

	
	
	
	

	 	10.7. INDEMNIFICATION
	 	 	69	 
	
	
	
	

	 	10.8. LENDERS IN THEIR RESPECTIVE INDIVIDUAL CAPACITIES
	 	 	70	 
	
	
	
	

	 	10.9. SUCCESSOR AGENTS
	 	 	70	 
	
	
	
	

	 	10.10. TITLED AGENTS
	 	 	71	 
	
	
	
	

	11. GUARANTY OF THE PARENT BORROWER
	 	 	71	 
	
	
	
	

	 	11.1. GUARANTY
	 	 	71	 
	
	
	
	

	 	11.2. ABSOLUTE OBLIGATION
	 	 	72	 
	
	
	
	

	 	11.3. REPAYMENT IN BANKRUPTCY
	 	 	73	 
	
	
	
	

	 	11.4. NO SUBROGATION
	 	 	73	 
	
	
	
	

	12. OTHER PROVISIONS
	 	 	73	 
	
	
	
	

	 	12.1. AMENDMENTS AND WAIVERS
	 	 	73	 
	
	
	
	

	 	12.2. NOTICES
	 	 	74	 
	
	
	
	

	 	 	(a) To Borrower or any other Borrower
	 	 	74	 
	
	
	
	

	 	 	(b) To a Lender
	 	 	74	 
	
	
	
	

	 	 	(c) To the Agent
	 	 	74	 
	
	
	
	

	 	 	(d) Effectiveness of Notice
	 	 	74	 
	
	
	
	

	 	12.3. NO WAIVER; CUMULATIVE REMEDIES
	 	 	75	 
	
	
	
	

	 	12.4. SURVIVAL OF REPRESENTATIONS AND WARRANTIES AND CERTAIN OBLIGATIONS
	 	 	75	 
	
	
	
	

	 	 	(a) Representations and Warranties
	 	 	75	 
	
	
	
	

	 	 	(b) Obligations
	 	 	75	 
	
	
	
	

	 	12.5. EXPENSES
	 	 	75	 
	
	
	
	

	 	12.6. ASSIGNMENTS AND PARTICIPATIONS
	 	 	76	 
	
	
	
	

	 	 	(a) Binding Effect
	 	 	76	 
	
	
	
	

	 	 	(b) Assignments
	 	 	76	 
	
	
	
	

	 	 	(c) Participations
	 	 	77	 
	
	
	
	

	 	 	(d) Relief from Obligations
	 	 	77	 
	
	
	
	

	 	 	(e) Federal Reserve Assignment
	 	 	77	 
	
	
	
	

	 	12.7. INDEMNITY
	 	 	77	 
	
	
	
	

	 	12.8. LIMITATION OF LIABILITY
	 	 	78	 
	
	
	
	

	 	12.9. COUNTERPARTS
	 	 	79	 
	
	
	
	

	 	12.10. ADJUSTMENTS; SET-OFF
	 	 	79	 
	
	
	
	

	 	 	(a) Adjustments
	 	 	79	 
	
	
	
	

	 	 	(b) Set-Off
	 	 	79	 
	
	
	
	

	 	12.11. CONSTRUCTION
	 	 	80	 
	
	
	
	

	 	12.12. GOVERNING LAW
	 	 	81	 
	
	
	
	

	 	12.13. JUDGMENT CURRENCY
	 	 	81	 
	
	
	
	

	 	 	(a) Conversion of Judgment Currency
	 	 	81	 
	
	
	
	

	 	 	(b) Indemnification
	 	 	81	 
	
	
	
	

	 	12.14. INTERNATIONAL BANKING FACILITIES
	 	 	81	 
	
	
	
	

	 	 	(a) Utilization of International Banking Facility by Lenders
	 	 	81	 
	
	
	
	

	 	 	(b) Use of Proceeds from International Banking Facility
	 	 	81	 
	
	
	
	

	 	12.15. HEADINGS DESCRIPTIVE
	 	 	82	 
	
	
	
	

	 	12.16. SEVERABILITY
	 	 	82	 
	
	
	
	

	 	12.17. INTEGRATION
	 	 	82	 
	
	
	
	

	 	12.18. CONSENT TO JURISDICTION
	 	 	82	 
	
	
	
	

	 	12.19. SERVICE OF PROCESS
	 	 	82	 
	
	
	
	

	 	12.20. NO LIMITATION ON SERVICE OR SUIT
	 	 	83	 

v

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	PAGE NO.
	 	 	 	 	

	
	
	
	

	 	12.21. WAIVER OF TRIAL BY JURY
	 	 	83	 
	
	
	
	

	 	12.22. EFFECTIVE DATE
	 	 	83	 
	
	
	
	

	 	12.23. TREATMENT OF CERTAIN INFORMATION
	 	 	84	 
	
	
	
	

	 	12.24. PARENT BORROWER AS AGENT FOR SUBSIDIARY BORROWERS
	 	 	84	 
	
	
	
	

	 	12.25. OPINION OF LOCAL COUNSEL WITH RESPECT TO INITIAL GUARANTOR SUBSIDIARIES
	 	 	84	 

vi

 

TABLE OF EXHIBITS AND SCHEDULES

	 	 	 
	EXHIBITS	 	 
	 	 	 
	Exhibit A	 	
List of Administrative Agent’s Address for Notices and Agent Payment Offices
	
	
	
	

	Exhibit B	 	
Form of Assignment and Acceptance Agreement
	
	
	
	

	Exhibit C	 	
Form of Borrowing Request — Revolving Credit Loans
	
	
	
	

	Exhibit D	 	
List of Commitment Amounts
	
	
	
	

	Exhibit E	 	
Form of Compliance Certificate
	
	
	
	

	Exhibit F	 	
Form of Currency Addendum
	
	
	
	

	Exhibit G	 	
Form of Notice of Conversion
	
	
	
	

	Exhibit H	 	
Form of Notice of Swingline Borrowing
	
	
	
	

	Exhibit I	 	
List of Borrowers’ Payment Accounts
	
	
	
	

	Exhibit J	 	
Form of Revolving Credit Note
	
	
	
	

	Exhibit K	 	
Form of Swingline Note
	
	
	
	

	Exhibit L-1	 	
Form of Opinion of Counsel to Borrower — Simpson Thacher & Bartlett
	
	
	
	

	Exhibit L-2	 	
Form of Opinion of Counsel to Parent Borrower — Philip E. Kucera, Esq.
	
	
	
	

	Exhibit M	 	
Form of Opinion of Special Counsel
	
	
	
	

	Exhibit N	 	
List of Lenders’ Addresses for Notices
	
	
	
	

	Exhibit O	 	
Form of Guaranty
	
	
	
	

	Exhibit P	 	
Form of Borrower Addendum
	
	
	
	

	Exhibit Q	 	
List of Borrowers’ Addresses for Notices

	 	 	 
	SCHEDULES	 	 
	 	 	 
	Schedule 1	 	
List of Lenders
	
	
	
	

	Schedule 4.1	 	
List of Subsidiaries; Jurisdictions of Formation
	
	
	
	

	Schedule 4.5	 	
List of Litigation
	
	
	
	

	Schedule 4.18	 	
List of Existing Indebtedness; Liens
	
	
	
	

	Schedule 8.6	 	
List of Liens
	
	
	
	

	Schedule 4.21	 	
Description of BGS

i

 

CREDIT AGREEMENT

         CREDIT AGREEMENT, dated as of July 2, 2002, by and among BOWNE & CO., INC., a
Delaware corporation (the “Parent Borrower”), the Subsidiaries party hereto or
which from time to time become party hereto (each a “Subsidiary Borrower” and
collectively, the “Subsidiary Borrowers”), FLEET NATIONAL BANK and the other
lending institutions listed on Schedule 1 attached hereto (each a “Lender” and,
collectively, the “Lenders”), FLEET NATIONAL BANK, as Agent for the Lenders,
JPMORGAN CHASE BANK, as Documentation Agent (the “Documentation Agent”),
WACHOVIA BANK, NATIONAL ASSOCIATION, as Syndication Agent (the “Syndication
Agent”), with FLEET SECURITIES, INC. having acted as the Arranger.

1. DEFINITIONS AND PRINCIPLES OF CONSTRUCTION

1.1. DEFINITIONS

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

ABR Advances: the Revolving Credit Loans (or any portions thereof), at such
time as they (or such portions) are made and/or being maintained at a rate of
interest based upon the Alternate Base Rate.

Accountants: KPMG LLP (or any successor thereto), or such other firm of
certified public accountants of recognized national standing selected by
Borrower.

Accumulated Funding Deficiency: as defined in Section 302 of ERISA.

Acquisition: with respect to any Person, the purchase or other acquisition by
such Person, by any means whatsoever (including through a merger, dividend or
otherwise and whether in a single transaction or in a series of related
transactions), of (a) any Voting Stock of any other Person if, immediately
thereafter, such other Person would be either a Subsidiary of such Person or
otherwise under the control of such Person, (b) any business, going concern or
divisions or segment of any other Person, or (c) any Property of any other
Person other than (i) in the ordinary course of business, provided, however,
that no acquisition of all or substantially all of the assets of such other
Person shall be deemed to be in the ordinary course of business; or (ii)
Property acquired for use in the ordinary course of business without any
associated goodwill or other intangible assets.

Advance: an ABR Advance, a Eurodollar Advance, or an Alternate Currency
Advance, as the case may be.

Agent: Fleet National Bank as contractual representative for the Lenders under
the terms of this Agreement, and any of its successors.

 

 

Affected Advance: as defined in Section 3.8.

Affiliate: at any time and with respect to any Person, any other Person that
would be considered to be an affiliate of such Person under Rule 144(a) under
the Securities Act of 1933, as amended, as in effect on the date of this
Agreement, if such Person were issuing securities.

Agent Payment Office: (a) with respect to all amounts owing under the Loan
Documents (other than in respect of Alternate Currency Loans), initially, the
office, branch, affiliate, or correspondent bank of the Agent designated as its
“Domestic Payment Office” in Exhibit A and, thereafter, such other office,
branch, affiliate, or correspondent bank thereof as it may from time to time
designate in writing as such to Parent Borrower and each Lender, and (b) with
respect to all amounts owing in respect of each Alternate Currency Loan,
initially, the office, branch, affiliate, or correspondent bank of the Agent
designated as its payment office for the applicable Alternate Currency in
Exhibit A and, thereafter, such other office, branch, affiliate, or
correspondent bank thereof as it may from time to time designate in writing as
such to Parent Borrower and each Lender.

Aggregate Commitment Amount: at any time, the sum at such time of the
Commitment Amounts of all Lenders.

Aggregate Credit Exposure: as of any date of determination, the sum as of such
date of the outstanding principal amount of the Loans of all Lenders
(determined, in the case of each Alternate Currency Loan, on the basis of the
Currency Equivalent in Dollars thereof).

Agreement: this Credit Agreement, as the same may be amended, supplemented or
otherwise modified from time to time.

Alternate Base Rate: on any date, a rate of interest per annum equal to the
greater of (a) the Federal Funds Rate in effect on such date plus 1/2 of 1% and
(b) the Prime Rate in effect on such date.

Alternate Currency: Canadian Dollars, Euros, Japanese Yen, Sterling Pounds,
and such other currencies as shall become Alternate Currencies in accordance
with Section 2.10.

Alternate Currency Advances: the Revolving Credit Loans (or any portions
thereof) at such time as they (or such portions) are made and/or being
maintained in an Alternate Currency at a rate of interest based upon the
applicable Alternate Currency Rate.

Alternate Currency Business Day: (a) with respect to any Alternate Currency
Advance (other than Euros) and any Eurodollar Advance, any Business Day which
is a day on which dealings in dollar deposits and other currencies and
exchange, between banks may be carried on in London, England, and is not a
legal holiday or a day on which banking institutions are authorized or required
by law or other government action to close in the national jurisdiction in
which the
Agent Payment Office with respect to such Currency is located or, if there is
no such Agent

2

 

Payment Office, the national jurisdiction of which such Currency
is the freely transferable lawful money; and (b) with respect to Euros, any
Business Day which is also a Target Day.

Alternate Currency Loan: each Revolving Credit Loan denominated in an Alternate
Currency.

Alternate Currency Rate:

         (a)  with respect to each Alternate Currency Advance not denominated in
Euros, a rate of interest per annum, as determined by the Agent, obtained by
dividing:

	 	 	 	(x) (i) the rate per annum for deposits having a maturity most nearly
comparable to the Euro Interest Period in respect of such Alternate
Currency Advance in the applicable Alternate Currency which appears on
page 3750 of the Telerate System (or any successor page) as of 11:00
a.m. London time on the date which is two Alternate Currency Business
Days prior to the first day of such Euro Interest Period; (ii) if on
such date no such offered rates are so displayed, the rate per annum
equal to the arithmetic average (and then rounding to the next higher
1/16 of 1%) of the respective offered quotations notified to the Agent
by the Reference Lenders, in each case as quoted by such Reference
Lender at approximately 11:00 a.m. London time (or as soon thereafter
as practicable) on the date which is two Alternate Currency Business
Days prior to the first day of such Euro Interest Period to leading
banks in the interbank eurocurrency market as the rate at which such
Reference Lender is offering deposits in such Alternate Currency in an
amount approximately equal to its Commitment Percentage of such
Alternate Currency Advance and having a period to maturity
approximately equal to such Euro Interest Period; or (iii) to the
extent required by Section 3.8, the rate per annum equal to the
arithmetic average of the respective rates reported to the Agent by
the Reference Lenders, in each case as the rate determined by such
Reference Lender to be reflective of the all-in cost of funds of such
Reference Lender to fund such Alternate Currency Advance in an amount
approximately equal to its Commitment Percentage of such Alternate
Currency Advance and having a period to maturity approximately equal
to such Euro Interest Period; by
	 
	 	 	 	(y) a number equal to 1.00 minus the Euro-Dollar Reserve Percentage.

         (b)  With respect to each Alternate Currency Advance denominated in Euros,
a rate of interest per annum, as determined by the Agent, obtained by dividing:

	 	 	 	(x) (i) the rate of interest for deposits having a maturity most
nearly comparable to the Euro Interest Period which appears on the
“EURIBOR01” page of the Reuters screen (or such other page on the
Reuters screen as may customarily be used from time to time to display
EURIBOR rates) at or about 11:00 a.m. Brussels time on the date which
is two Alternate Currency Business Days prior to the first day of such
Euro Interest Period; or (ii) if the relevant page is not displayed on
the Reuters screen, or
the Reuters screen is not operating at the relevant time, or if no
such offered rate

3

 

	 	 	 	appears on the Reuters screen for that period, the
rate of interest for such period which appears on page 248 of the
Telerate System (or such other page on the Telerate System as may
customarily be used from time to time to display EURIBOR rates) at or
about 11:00 a.m. Brussels time on the date which is two Alternate
Currency Business Days prior to the fist day of such Euro Interest
Period; or (iii) if the relevant rate of EURIBOR rate cannot be
determined in accordance with items (i) and (ii) above, the rate
determined by the Agent to be the arithmetic mean (rounded upwards if
necessary to the nearest 1/16 of 1%) of the rates respectively
notified to the Agent by the Reference Lenders (provided always that
at least two Reference Lenders shall have given such quotation) as
such Reference Lenders’ offered rates for deposits in an amount
approximately equal to its Commitment Percentage of such Alternate
Currency Advance to be denominated in Euros and having a period to
maturity approximately equal to such Euro Interest Period, to leading
banks in the interbank eurocurrency market at or about 11:00 a.m.
Brussels time on the date which is two Alternate Currency Business
Days prior to the first day of such Euro Interest Period; or (iv) to
the extent required by Section 3.8, the rate per annum equal to the
arithmetic average of the respective rates reported to the Agent by
the Reference Lenders, in each case as the rate determined by such
Reference Lender to be reflective of the all-in cost of funds of such
Reference Lender to fund such Alternate Currency Advance in Euros in
an amount approximately equal to its Commitment Percentage of such
Alternate Currency Advance and having a period to maturity
approximately equal to such Euro Interest Period; by
	 
	 	 	 	(y) a number equal to 1.00 minus the Euro-Dollar Reserve Percentage.

Applicable Fee Percentage: with respect to the Facility Fee, at all times
during which the applicable Pricing Level set forth below is in effect, the
percentage set forth below next to such Pricing Level:

	 	 	 	 	 
	Pricing Level	 	Applicable Fee Percentage
	I
	 	 	40	%
	
	
	
	

	II
	 	 	.350	%
	
	
	
	

	III
	 	 	.300	%
	
	
	
	

	IV
	 	 	.250	%
	
	
	
	

	V
	 	 	225	%
	
	
	
	

	VI
	 	 	.200	%

Changes in the Applicable Fee Percentage resulting from a change in a Pricing
Level shall be based upon the Compliance Certificate most recently delivered
pursuant to Section 7.1(a) and shall become effective on the date such
Compliance Certificate is delivered to the Agent and the Lenders.
Notwithstanding anything to the contrary contained in this definition, (a) if,
at any time and from time to time, Parent Borrower shall be in Default of its
obligations under Sections
7.1(a), (b) or (c), Pricing Level I shall apply until such Default is cured,
and (b) subject to the

4

 

preceding clause (a), during the period commencing on
the Effective Date and ending on the date of delivery thereafter of the first
Compliance Certificate pursuant to Section 7.1(a), Pricing Level II shall
apply.

Applicable Margin: with respect to Eurodollar Advances and Alternate Currency
Advances, in each case at all times during which the applicable Pricing Level
set forth below is in effect, the percentage set forth below next to such
Pricing Level:

	 	 	 	 	 
	Pricing Level	 	Applicable Margin
	I
	 	 	1.60	%
	
	
	
	

	II
	 	 	1.50	%
	
	
	
	

	III
	 	 	1.32	5**%
	
	
	
	

	IV
	 	 	1.00	%
	
	
	
	

	V
	 	 	.90	%
	
	
	
	

	VI
	 	 	.80	%

	**	 	provided if no Subordinated Indebtedness is then outstanding
the Applicable Margin for Pricing Level III shall be 1.20%.

Changes in the Applicable Margin resulting from a change in a Pricing Level
shall be based upon the Compliance Certificate most recently delivered pursuant
to Section 7.1(a) and shall become effective on the date such Compliance
Certificate is delivered to the Agent and the Lenders. Notwithstanding anything
to the contrary contained in this definition, (a) if, at any time and from time
to time, Parent Borrower shall be in Default of its obligations under Sections
7.1(a), (b) or (c), Pricing Level I shall apply until such Default is cured,
and (b) subject to the preceding clause (a), during the period commencing on
the Effective Date and ending on the date of delivery thereafter of the first
Compliance Certificate pursuant to Section 7.1(a), Pricing Level II shall
apply.

Approved Fund: (a) a CLO and (b) with respect to any Lender that is a fund
which invests in bank loans and similar extensions of credit, any other fund
that invests in bank loans and similar extensions of credit and is managed by
the same investment advisor as such Lender or by an Affiliate of such
investment advisor.

Assignment: as defined in Section 12.6(b).

Assignment and Acceptance Agreement: an assignment and acceptance agreement
executed by an assignor and an assignee, substantially in the form of Exhibit
B.

BGS: the assets and operations constituting the business segment known as
Bowne Global Solutions as further described on Schedule 4.21.

BGS Disposition: a Disposition of 10% or more of the Capital Stock (including,
without limitation, an original issuance or sales of treasury stock) of any of
the Persons constituting all or

5

 

a portion of BGS (and no other business segment) or
all or substantially all of the assets of BGS (and no other business segment);
provided that Parent Borrower has provided evidence satisfactory to the Agent
that, after giving effect to such Disposition, no Default or Event of Default
would exist; and, provided further, that (a) after giving effect to such
Disposition, the Consolidated EBITDA for the four fiscal quarters of Parent
Borrower immediately preceding such Disposition, determined on a pro forma
basis as if such Disposition had been consummated on the first day of such
period, shall be at least $75,000,000 or (b) if such Consolidated EBITDA is not
at least $75,000,000, then: (x) the Aggregate Commitment Amount shall be
reduced by a sum equal to the product of the Aggregate Commitment Amount
immediately preceding such Disposition multiplied by a fraction, the numerator
of which is $75,000,000 minus the Consolidated EBITDA for the four fiscal
quarters of Parent Borrower immediately preceding such Disposition, determined
on a pro forma basis as if such Disposition had been consummated on the first
day of such period and the denominator of which shall be $75,000,000; and (y)
simultaneously with the consummation of such Disposition, the Credit Parties
make a prepayment of the principal amount of the Obligations in an amount
sufficient to reduce the outstanding amount of the Loans to be no greater than
the Aggregate Commitment Amount as so reduced in accordance with the
immediately preceding clause (x).

BGS Entities: as defined in Section 8.9(c).

Borrowers: collectively, the Parent Borrower and the Subsidiary Borrowers.

Borrower Addendum: an Addendum, duly completed and executed by each of the
Parent Borrower and the relevant Subsidiary thereof, substantially in the form
of Exhibit P.

Borrower Obligations: as defined in Section 11.1.

Borrowing Date: any Business Day on which (a) the Lenders make ABR Advances in
accordance with a Borrowing Request, or (b) any Alternate Currency Business
Day on which the Lenders make Eurodollar Advances or Alternate Currency
Advances, as the case may be, in accordance with a Borrowing Request.

Borrowing Request: a request for Revolving Credit Loans, substantially in the
form of Exhibit C.

Business Day: any day except Saturday, Sunday or a day which in New York City
or New Jersey is a legal holiday or a day on which banking institutions are
authorized or required by law or other government action to close.

Canadian Borrower: any Borrower which is organized under the laws of, and has
its principal office in, Canada.

Canadian Dollars: freely transferable lawful money of Canada.

6

 

Capital Lease: at any time, a lease with respect to which the lessee is
required concurrently to recognize the acquisition of an asset and the
incurrence of a liability in accordance with GAAP.

Capital Lease Obligations: with respect to any Person, obligations of such
Person with respect to Capital Leases.

Capital Stock: as to any Person, all shares, interests, partnership interests,
limited liability company interests, participations and other rights in, or
other equivalents (however designated) of, such Person’s equity (however
designated), and any rights, warrants or options exchangeable for, or
convertible into, such shares, interests, participations, rights or other
equivalents.

Change of Control: one or both of the following events:

	 	 	 	(a) any person or group shall have become the beneficial owner of shares
entitled to exercise more than 30% of the total voting power of all
outstanding shares of Voting Stock of Parent Borrower (including any
Voting Stock which is not then outstanding of which such person or group
is the beneficial owner), and, in addition, a change in the composition
of the Board of Directors of Parent Borrower shall have occurred in
which the individuals who constituted the Board of Directors of Parent
Borrower at the beginning of the two year period immediately preceding
such change (together with any other director whose election to the Board
of Directors of Parent Borrower or whose nomination for election by the
shareholders of Parent Borrower was approved by a vote of at least
two-thirds of the members of such Board of Directors then in office who
either were members of such Board of Directors at the beginning of such
period or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority of the members of
such Board of Directors then in office; or
	 
	 	 	 	(b) any person or group shall have become the beneficial owner of voting
shares entitled to exercise more than 50% of the total voting power of
all outstanding shares of Voting Stock of Parent Borrower (including any
shares of Voting Stock which are not then outstanding of which such
person or group is the beneficial owner).

For purposes of this definition, (i) the terms “person” and “group” shall have
the respective meanings ascribed thereto in Sections 13(d) and 14(d)(2) of the
Exchange Act, and (ii) the term “beneficial owner” shall have the meaning
ascribed thereto in Rule 13d-3 under the Exchange Act.

CLO: any entity (whether a corporation, partnership, trust or otherwise) that
is engaged in making, purchasing, holding or otherwise investing in bank loans
and similar extensions of credit in the ordinary course of its business and is
administered or managed by a Lender or an Affiliate of such Lender.

Code: the Internal Revenue Code of 1986, as the same has been and may be
amended from time to time, or any successor thereto, and the rules and
regulations issued thereunder, as from time to time in effect.

7

 

Commitment: in respect of any Lender, such Lender’s undertaking during the
Commitment Period to make Revolving Credit Loans, subject to the terms and
conditions hereof, in an aggregate outstanding principal amount not exceeding
the Commitment Amount of such Lender.

Commitment Amount: as of any date and with respect to any Lender, the amount
set forth adjacent to its name under the heading “Commitment Amount” in Exhibit
D on such date or, in the event that such Lender is not listed in Exhibit D,
the “Commitment Amount” which such Lender shall have assumed from another
Lender in accordance with Section 12.6 on or prior to such date, in each case
as the same may be adjusted from time to time pursuant to Sections 2.6, 2.12
and 12.6.

Commitment Percentage: as to any Lender in
respect of such Lender’s Commitment, the percentage equal to
such Lender’s Commitment Amount divided by the Aggregate
Commitment Amount (or, if no Commitments then exist, the percentage
equal to such Lender’s Commitment Amount on the last day upon
which Commitments
did exist divided by the Aggregate Commitment Amount on such day).

Commitment Period: the period commencing on
the Effective Date and ending on
the Commitment Termination Date, or such earlier date upon which the
Commitments shall have been terminated in accordance herewith.

Commitment Termination Date: the Business
Day immediately preceding the third
anniversary of the Effective Date.

Compliance Certificate: a certificate substantially in the form of Exhibit E.

Consolidated: Parent Borrower and its Subsidiaries on a consolidated basis in
accordance with GAAP; provided however, if Parent Borrower makes the election
set forth in Section 8.9(c) of this Agreement, the selected BGS Entities will
not be considered Consolidated with the Parent Borrower for any purpose under
this Agreement, including, without limitation, the financial statement delivery
requirements set forth in Section 7.1 of this Agreement.

Consolidated EBITDA: for any period, the Consolidated Net Income from
continuing operations and before extraordinary items for such period, plus the
sum of, without duplication, each of the following with respect to Parent
Borrower and its Subsidiaries, to the extent utilized in determining such
Consolidated Net Income: (a) Interest Expense, (b) provision for federal, state
and local income taxes, and (c) depreciation and amortization (other than
amortization of debt discount); provided, however, all non-cash income,
expense, gains and losses to the extent included in Consolidated Net Income for
such period shall be excluded from the foregoing computation. Notwithstanding
the foregoing, if during any period for which Consolidated EBITDA is being
determined, Parent Borrower or any of its Subsidiaries shall have consummated
any Acquisition or Disposition then, for all purposes of this Agreement,
Consolidated EBITDA shall be determined on a pro forma basis as if such
Acquisition or Disposition had been made or consummated on the first day of
such period.

8

 

Consolidated EBITDAR: for any period, means the Consolidated EBITDA for such
period plus all Rentals to the extent utilized in determining Consolidated Net
Income for such period.

Consolidated Fixed Charges: for any period means the sum of (a) all Rentals for
such period, and (b) all Interest Expense on all Consolidated Indebtedness for
such period.

Consolidated Indebtedness: all Indebtedness of Parent Borrower and its
Subsidiaries, determined on a Consolidated basis.

Consolidated Net Income: with reference to any period, the net income (or loss)
of Parent Borrower and its Subsidiaries, determined on a Consolidated basis in
accordance with GAAP.

Consolidated Shareholders’ Equity: as of the date of any determination thereof
the aggregate amount of the capital stock accounts (net of treasury stock, at
cost, but including paid-in capital) plus (or minus in the case of a deficit)
the surplus in retained earnings of Parent Borrower and its Subsidiaries as
determined on a Consolidated basis in accordance with GAAP.

Consolidated Total Capitalization: as of the date of any determination thereof,
the sum of (a) Consolidated Indebtedness plus (b) Consolidated Shareholders’
Equity.

Contingent Obligation: as to any Person (a “secondary obligor”), any obligation
of such secondary obligor (a) guaranteeing or in effect guaranteeing any return
on any investment made by another Person, or (b) guaranteeing or in effect
guaranteeing any Indebtedness, lease, dividend or other obligation (a “primary
obligation”) of any other Person (a “primary obligor”) in any manner, whether
directly or indirectly, including any obligation of such secondary obligor,
whether contingent, (i) to purchase any primary obligation or any Property
constituting direct or indirect security therefor, (ii) to advance or supply
funds (A) for the purchase or payment of any primary obligation or (B) to
maintain working capital or equity capital of the primary obligor or otherwise
to maintain the net worth or solvency of a primary obligor, (iii) to purchase
Property, securities or services primarily for the purpose of assuring the
beneficiary of any primary obligation of the ability of a primary obligor to
make payment of a primary obligation, (iv) otherwise to assure or hold harmless
the beneficiary of a primary obligation against loss in respect thereof, and
(v) in respect of the liabilities of any partnership in which a secondary
obligor is a general partner, except to the extent that such liabilities of
such partnership are nonrecourse to such secondary obligor and its separate
Property, provided, however, that the term “Contingent Obligation” shall not
include the endorsement of instruments for deposit or collection in the
ordinary course of business. The amount of any Contingent Obligation of a
Person shall be deemed to be an amount equal to the stated or determinable
amount of a primary obligation in respect of which such Contingent Obligation
is made or, if not stated or determinable, the maximum reasonably anticipated
liability in respect thereof as determined by such Person in good faith.

Control Person: as defined in Section 3.5.

Conversion Date: any date on which (a) a Eurodollar Advance is converted to an
ABR Advance or a new Eurodollar Advance, as the case may be, (b) an ABR Advance
is converted to a

9

 

Eurodollar Advance, or (c) an Alternate Currency Advance is converted to a new
Alternate Currency Advance, as the case may be.

Credit Party: each Borrower and each other party (other than the Agent, the
Titled Agents and the Lenders) to a Loan Document.

Currencies: collectively, Dollars and the Alternate Currencies.

Currency Addendum: an addendum, duly completed and executed by Parent Borrower,
substantially in the form of Exhibit F.

Currency Equivalent: on any date of determination thereof, the amount in one
Currency which shall be equivalent on any particular date to a specified amount
in another Currency and shall be that amount (as conclusively ascertained by
the Agent by its normal banking practices, absent manifest error) in the first
Currency which is or could be purchased by the Agent (in accordance with normal
banking practices) with such specified amount in the second Currency in any
recognized interbank eurocurrency market selected by the Agent in good faith
for delivery on such date at the spot rate of exchange prevailing at 11:00 a.m.
(or as soon thereafter as practicable) on such date.

Default: any event or condition which constitutes an Event of Default or which,
with the giving of notice, the lapse of time, or any other condition, would,
unless cured or waived, become an Event of Default.

Disposition: with respect to any Person, any sale, assignment, transfer or
other disposition by such Person, by any means, of (a) the Capital Stock of any
other Person, (b) any business, going concern or division or segment thereof,
or (c) any other Property of such Person other than in the ordinary course of
business; provided, however, that no such sale, assignment, transfer or other
disposition of Property (other than inventory, except to the extent subject to
a bulk sale) shall be deemed to be in the ordinary course of business if it is
the sale, assignment, transfer or disposition of (i) all or substantially all
of the Property of such Person, or (ii) any Operating Entity.

Dollar Revolving Credit Loan: a Revolving Credit Loan made in Dollars.

Dollars and $: lawful currency of the United States.

Domestic Borrower: any Borrower which is organized under the laws of the
United States or any state thereof and, which has its principal place of
business in the United States.

Domestic Subsidiary: any Subsidiary of Borrower which is organized under the
laws of the United States or any state thereof.

Effective Date: as defined in Section 12.22.

Eligible Assignee: as defined in Section 12.6(b).

10

 

Employee Benefit Plan: an employee benefit plan within the meaning of Section
3(3) of ERISA maintained, sponsored or contributed to by Parent Borrower, any
of its Subsidiaries or any ERISA Affiliate.

ERISA: the Employee Retirement Income Security Act of 1974, as amended from
time to time, and the rules and regulations issued thereunder, as from time to
time in effect.

ERISA Affiliate: any trade or business (whether or not incorporated) that is
treated as a single employer together with Parent Borrower or any of its
Subsidiaries under Section 414(b) or (c) of the Code.

EURO: the single currency of Participating Member States.

EURO Interest Period: with respect to any Eurodollar Advance or Alternate
Currency Advance requested by any Borrower, or if such Borrower is a Subsidiary
Borrower, the Parent Borrower on behalf of such Subsidiary Borrower, the period
commencing on the Borrowing Date or Conversion Date, as the case may be, with
respect to such Advance and ending one, two, three or six or, if made available
by all of the Lenders, nine or twelve months thereafter, as selected by such
Borrower, or, if such Borrower is a Subsidiary Borrower, the Parent Borrower,
on behalf of such Subsidiary Borrower, in the applicable Borrowing Request or
Notice of Conversion, as the case may be, therefor; provided, however, that (a)
if any Euro Interest Period would otherwise end on a day which is not an
Alternate Currency Business Day, such Euro Interest Period shall be extended to
the next succeeding Alternate Currency Business Day unless (i) such next
succeeding Alternate Currency Business Day would be a date on or after the
Commitment Termination Date or such earlier date upon which the Commitments
shall have been voluntarily terminated by Parent Borrower in accordance with
Section 2.6, in which event such Euro Interest Period shall end on the next
preceding Alternate Currency Business Day, or (ii) the result of such extension
would be to carry such Euro Interest Period into another calendar month, in
which event such Euro Interest Period shall end on the immediately preceding
Alternate Currency Business Day; (b) any Euro Interest Period that begins on
the last Alternate Currency 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 Euro Interest Period) shall end on the last Alternate Currency
Business Day of a calendar month; and (c) no Euro Interest Period shall end
after the Commitment Termination Date or such earlier date upon which the
Commitments shall have been voluntarily terminated by Parent Borrower in
accordance with Section 2.6. Interest shall accrue from and including the first
day of a Euro Interest Period to, but excluding, the last day of such Euro
Interest Period.

Eurodollar Advances: the Revolving Credit Loans (or any portions thereof), at
such time as they (or such portions) are made and/or being maintained in
Dollars at a rate of interest based upon the Eurodollar Rate.

Eurodollar Rate: with respect to each Eurodollar Advance, a rate of interest
per annum, as determined by the Agent, obtained by dividing:

11

 

         (a)  (i) the rate per annum as determined on the basis of the offered rates
for deposits in Dollars having a maturity most nearly comparable to the Euro
Interest Period in respect of such Eurodollar Advance which appears on page
3750 of the Telerate System (or any successor page) as of 11:00 a.m. London
time on the date that is two Alternate Currency Business Days prior to the
first day of such Euro Interest Period; or (ii) or if on such date no such rate
does appear on page 3750 of the Telerate System, the rate per annum equal to
the arithmetic average (and then rounding to the next higher 1/16 of 1%) of the
respective offered quotations notified to the Agent by the Reference Lenders,
in each case as quoted by such Reference Lender at approximately 11:00 a.m.
London time (or as soon thereafter as practicable) two Alternate Currency
Business Days prior to the first day of such Euro Interest Period to leading
banks in the interbank eurodollar market as the rate at which such Reference
Lender is offering Dollar deposits in an amount approximately equal to its
Commitment Percentage of such Eurodollar Advance and having a period to
maturity approximately equal to such Euro Interest Period; by

         (b)  a number equal to 1.00 minus the Euro-Dollar Reserve Percentage.

Euro-Dollar Reserve Percentage: means the aggregate of the then stated maximum
rates during such Euro Interest Period of all reserve requirements (including
marginal, emergency, supplemental and special reserves), expressed as a
decimal, established by the Board of Governors of the Federal Reserve System
and any other United States banking authority to which Fleet and other major
United States money center banks are subject in respect of eurocurrency funding
(currently referred to as “Eurocurrency Liabilities” in Regulation D), without
benefit of credits for pro ration, exceptions or offsets which may be available
from time to time to Fleet.

Event of Default: as defined in Section 9.1.

Exchange Act: the Securities Exchange Act of 1934, as amended.

Existing Loan Agreement: the Credit Agreement dated as of July 7, 1997, by and
among Parent Borrower, Fleet and certain others, as amended.

Facility Fee: as defined in Section 3.2(a).

Federal Funds Rate: for any day, a rate per annum (expressed as a decimal,
rounded upwards, if necessary, to the next higher 1/100 of 1%) equal to the
weighted average of the rates on overnight federal funds transactions with
members of the Federal Reserve System arranged by federal funds brokers on such
day, as published by the Federal Reserve Bank of New York on the Business Day
next succeeding such day, provided that (a) if the day for which such rate is
to be determined is not a Business Day, the Federal Funds Rate for such day
shall be such rate on such transactions on the next preceding Business Day as
so published on the next succeeding Business Day, and (b) if such rate is not
so published on such next succeeding Business Day, the Federal Funds Rate for
such day shall be the average rate quoted to the Agent by federal funds dealers
selected by the Agent on such day on such transaction as determined by the
Agent.

12

 

Financial Officer: as to any Person, the chief financial officer or the
treasurer thereof, or any other financial officer thereof designated by such
chief financial officer.

Financial Statements: as defined in Section 4.13.

Fixed Rate Loan: any Eurodollar Advance or any Alternate Currency Advance, as
the case may be.

Fleet: Fleet National Bank.

Funded Debt: at any date of determination, an amount equal to the sum, without
duplication, of each of the following: (a) the aggregate funded Indebtedness
for borrowed money on such date of Parent Borrower and its Subsidiaries,
determined on a Consolidated basis in accordance with GAAP, plus (b) the
aggregate Capital Lease Obligations on such date of Parent Borrower and its
Subsidiaries, determined on a Consolidated basis in accordance with GAAP, plus
(c) the aggregate guaranty obligations on such date of Parent Borrower and its
Subsidiaries, determined on a Consolidated basis in accordance with GAAP,
solely in respect of any funded indebtedness for borrowed money and any Capital
Lease Obligations.

GAAP: generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and in the statements and pronouncements of the
Financial Accounting Standards Board or in such other statement by such other
entity as may be approved by a significant segment of the accounting
profession, which are applicable to the circumstances as of the date of
determination, consistently applied.

Governmental Authority: any foreign, federal, state, municipal or other
government, or any department, commission, board, central bank, or other
fiscal, monetary or other authority, bureau, agency, public authority or
instrumentality thereof, or any court or arbitrator.

Guarantor Subsidiary: a Domestic Subsidiary of Borrower that has executed and
delivered to the Agent a Guaranty.

Guaranty: the Guaranty in substantially the form of Exhibit O hereto.

Indebtedness: as to any Person, at a particular time, all items which
constitute, without duplication, (a) indebtedness for borrowed money, (b)
indebtedness in respect of the deferred purchase price of Property (other than
trade payables incurred in the ordinary course of business), (c) indebtedness
evidenced by notes, bonds, debentures or similar instruments, (d) obligations
with respect to any conditional sale or title retention agreement, (e)
indebtedness arising under acceptance facilities and the amount available to be
drawn under all letters of credit issued for the account of such Person and,
without duplication, all drafts drawn thereunder to the extent such Person
shall not have reimbursed the issuer in respect of the issuer’s payment
thereof, (f) all liabilities secured by any Lien on any Property owned by such
Person even though such Person has not assumed or otherwise become liable for
the payment thereof (other than carriers’, warehousemen’s, mechanics’,
repairmen’s or other like non-consensual statutory Liens arising in

13

 

the ordinary course of business), (g) Capital Lease Obligations, and (h) all
Contingent Obligations of such Person in respect of any of the foregoing.

Indemnified Liabilities: as defined in Section 12.5.

Indemnified Person: as defined in Section 12.7.

Indemnified Tax: as to any Person, any Tax imposed on such Person, including
any interest, fees or penalties for late payment of such Tax, provided,
however, that, for purposes of this definition, “Indemnified Tax” shall not
include any Tax on the income imposed on such Person, including any interest,
fees or penalties for late payment of such Tax on the income

Indemnified Tax Person: Agent or any Lender, as the case may be.

Inter-Company Disposition: a Disposition by Parent Borrower or any of its
Subsidiaries to Parent Borrower or any of its Subsidiaries.

Inter-Company Indebtedness: loans or advances which are made by Parent Borrower
or any of its direct or indirect Subsidiaries to Parent Borrower or any of its
direct or indirect Subsidiaries.

Intercreditor Agreement: the Intercreditor Agreement dated as of June      ,
2002, among the Agent on behalf of the Lenders and the parties to the Note
Purchase Agreement other than Parent Borrower, as same may be amended, modified
or supplemented, from time to time.

Interest Expense: with respect to any Person means all amounts which would, in
accordance with GAAP, be deducted in computing net income on account of
interest on Indebtedness, included imputed interest in respect of Capital Lease
Obligations, amortization of debt discount and expense, fees and commissions
for letters of credit and bankers acceptance financing and the net interest
cost of interest rate swaps and hedges.

Interest Payment Date: (a) as to each ABR Advance, the last day of each March,
June, September and December commencing on the first of such days to occur
after such ABR Advance is made or any Eurodollar Advance is converted to an ABR
Advance, (b) as to each Eurodollar Advance and each Alternate Currency Advance,
the last day of the Euro Interest Period applicable thereto, and, without
duplication, (c) as to each Eurodollar Advance and each Alternate Currency
Advance in respect of which the Euro Interest Period is greater than three
months, the last day of each three month interval occurring during such Euro
Interest Period.

Investments: as defined in Section 8.10.

Japanese Borrower: any Borrower which is organized under the laws of, and has
its principal office in, Japan.

Japanese Yen: freely transferable lawful money of Japan.

Judgment Currency: as defined in Section 12.13.

14

 

Judgment Currency Conversion Date: as defined in Section 12.13.

Lender: as defined in the preamble, and which term shall include the Swingline
Lender and each Eligible Assignee which becomes a Lender pursuant to Sections
2.12 or 12.6 and each of their respective successors.

Leverage Ratio: at any date of determination, the ratio of (a) Funded Debt on
such date to (b) Consolidated EBITDA for the period of the four fiscal quarters
of Parent Borrower ending on such date or, if such date is not the last day of
a fiscal quarter of Parent Borrower, for the period of the immediately
preceding four fiscal quarters of Parent Borrower.

Lien: any mortgage, pledge, hypothecation, assignment, deposit or preferential
arrangement, encumbrance, lien (statutory or other), or other security
agreement or security interest of any kind or nature whatsoever, including any
conditional sale or other title retention agreement and any capital or
financing lease having substantially the same economic effect as any of the
foregoing.

Loan and Loans: any Revolving Credit Loan or Swingline Loan as well as such
loans collectively, as the context requires.

Loan Documents: collectively, this Agreement and all agreements, certificates,
instruments and other documents executed or delivered in connection therewith,
including any promissory notes executed and delivered pursuant to Section
2.9(d) and Section 2.11(d) and the Guaranties, the Intercreditor Agreement, in
each case as amended, supplemented or otherwise modified from time to time.

Managing Person: with respect to any Person that is (a) a corporation, its
board of directors, (b) a limited liability company, its board of managers,
managing member or members, (c) a limited partnership, its general partner, (d)
a general partnership or a limited liability partnership, its managing partner
or executive committee, or (e) any other Person, the managing body thereof or
other Person analogous to the foregoing.

Margin Stock: any “margin stock”, as defined in Regulation U of the Board of
Governors of the Federal Reserve System, as amended, supplemented or otherwise
modified from time to time.

Material Adverse Change: a material adverse change in (a) the condition
(financial or otherwise), operations, business or Property of Parent Borrower
and its Subsidiaries, taken as a whole, (b) the ability of Credit Parties,
taken as a whole, to perform their obligations under the Loan Documents or (c)
the ability of Agent or any Lender to enforce any Loan Document.

Material Adverse Effect: a material adverse effect on (a) the condition
(financial or otherwise), operations, business or Property of Parent Borrower
and its Subsidiaries, taken as a whole, (b) the ability of Credit Parties,
taken as a whole, to perform their obligations under the Loan Documents or (c)
the ability of Agent or any Lender to enforce any Loan Document.

15

 

Material Subsidiary: means any Subsidiary of Parent Borrower whose assets
constitute more than 3% of Consolidated Total Capitalization or which
contributes more than 3% of Consolidated Net Income, in any such case, as of
the then most recent fiscal year-end and, for purposes of Schedule 4.1 only,
for which the relevant financial statements have been delivered pursuant to
Section 7.1(c).

Multiemployer Plan: a Pension Plan which is a multiemployer plan as defined in
Section 4001(a)(3) of ERISA.

Notice of Conversion: a notice substantially in the form of Exhibit G.

Notes: collectively, the promissory notes delivered to the Lenders pursuant to
Section 2.9(d) and the Swingline Lender pursuant to Section 2.11(d).

Note Purchase Agreement: the Note Purchase Agreement, dated January 30, 2002,
between Parent Borrower, on the one hand, and certain purchasers, on the other
hand, and relating to the sale by Parent Borrower of: $25,000,000 aggregate
principal amount of its 6.90% Senior Notes, Series A, due January 30, 2007;
$28,000,000 aggregate principal amount of its 7.31% Senior Notes, Series B, due
January 30, 2012; and $22,000,000 aggregate principal amount of its 7.85%
Senior Notes, Series C, due January 30, 2012.

Notice of Swingline Borrowing: a notice in the form of Exhibit H to be
delivered to the Agent pursuant to Section 2.11 evidencing a request for a
borrowing of Swingline Loans.

Obligations: means any and all obligations of Credit Parties to the Agent or
the Lenders under, or in connection with, the Loan Documents of every kind and
description (including obligations in respect of fees), direct or indirect,
absolute or contingent, primary or secondary, due or to become due, now
existing or hereafter arising, regardless of how they arise or by what
agreement or instrument, if any, and including obligations to perform acts and
refrain from taking action as well as obligations to pay money.

Obligation Currency: as defined in Section 12.13.

Operating Entity: any Person or any business or operating unit of a Person
which is, or could be, operated separate and apart from (a) the other
businesses and operations of such Person, or (b) any other line of business or
business segment.

Organizational Documents: as to any Person which is (a) a corporation, the
certificate or articles of incorporation and by-laws of such Person, (b) a
limited liability company, the certificate of formation, articles of
organization, and the operating agreement or similar agreement of such Person,
(c) a partnership, the certificate of partnership, the partnership agreement or
similar agreement of such Person, or (d) any other form of entity or
organization, the organizational documents analogous to the foregoing.

Parent Borrower: Bowne & Co., Inc., a Delaware corporation.

16

 

Parent Guarantor Obligations: as defined in Section 11.1.

Participating Member State: a member state of the European Communities that
adopted a single currency in accordance with the Treaty.

PBGC: the Pension Benefit Guaranty Corporation referred to and defined in ERISA
or any successor thereto.

Pension Plan: at any date of determination, any Employee Benefit Plan
(including a Multiemployer Plan) subject to Section 302 of ERISA or Section 412
of the Code, the funding requirements of which (under such Section 302 or such
Section 412) are, or at any time within the six years immediately preceding
such date, were in whole or in part, the responsibility of the Parent Borrower,
any of its Subsidiaries or any ERISA Affiliate.

Permitted Lien: a Lien permitted to exist under Section 8.6.

Person: any individual, firm, partnership, limited liability company, joint
venture, corporation, association, business enterprise, joint stock company,
unincorporated association, trust, Governmental Authority or any other entity,
whether acting in an individual, fiduciary or other capacity, and for the
purpose of the definition of “ERISA Affiliate”, a trade or business.

Pricing Level: Pricing Level I, Pricing Level II, Pricing Level III, Pricing
Level IV, Pricing Level V or Pricing Level VI, as applicable.

Pricing Level I: any time when the Leverage Ratio is greater than or equal to
2.75 to 1.00; provided, however, if Subordinated Indebtedness is outstanding,
then Pricing Level I shall be any time when the Senior Leverage Ratio is
greater than or equal to 2.25 to 1.00.

Pricing Level II: any time when the Leverage Ratio is greater than or equal to
2.50 to 1.00 but less than 2.75 to 1.00; provided, however, if Subordinated
Indebtedness is outstanding, then Pricing Level II shall be any time when the
Senior Leverage Ratio is greater than or equal to 1.75 to 1.00 but less than
2.25 to 1.00.

Pricing Level III: any time when the Leverage Ratio is greater than or equal to
2.00 to 1.00 but less than 2.50 to 1.00; provided, however, if Subordinated
Indebtedness is outstanding, then Pricing Level III shall be any time when the
Senior Leverage Ratio is greater than or equal to 1.25 to 1.00 but less than
1.75 to 1.00.

Pricing Level IV: any time when the Leverage Ratio is greater than or equal to
1.50 to 1.00 but less than 2.00 to 1.00; provided, however, if Subordinated
Indebtedness is outstanding, then Pricing Level IV shall be any time when the
Senior Leverage Ratio is greater than or equal to .75 to 1.00 but less than
1.25 to 1.00.

Pricing Level V: any time when there is no Subordinated Indebtedness
outstanding and the Leverage Ratio is greater than or equal to 1.00 to 1.00 but
less than 1.50 to 1.00.

17

 

Pricing Level VI: any time when the Leverage Ratio is less than 1.00 to 1.00;
provided, however, if Subordinated Indebtedness is outstanding, then Pricing
Level VI shall be any time when the Senior Leverage Ratio is less than .75 to
1.00.

Prime Rate: the variable per annum rate of interest so designated from time to
time by the Lender acting as Agent as its prime rate. The Prime Rate is a
reference rate and does not necessarily represent the lowest or best rate being
charged to any customer.

Prohibited Transaction: a transaction which is prohibited under Section 4975 of
the Code or Section 406 of ERISA and not exempt under Section 4975 of the Code
or Section 408 of ERISA.

Property: all types of real, personal, tangible, intangible or mixed property.

Proposed Lender: as defined in Section 3.11.

Reference Lenders: collectively, Fleet National Bank, JPMorgan Chase Bank and
Wachovia Bank, National Association.

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

Regulatory Change: (a) the introduction of any law, rule or regulation after
the Relevant Date, (b) the issuance or promulgation after the Relevant Date of
any directive, guideline or request from any Governmental Authority (whether or
not having the force of law), or (c) any change after the Relevant Date in the
interpretation of any existing law, rule, regulation, directive, guideline or
request by any Governmental Authority charged with the administration thereof.

Relevant Date: (a) in the case of each Lender listed on the signature pages
hereof, the Effective Date and (b) in the case of each other Lender, the
effective date of the Assignment and Acceptance Agreement or other document
pursuant to which it became a Lender.

Rentals: for any period the aggregate amount of fixed or contingent rentals
payable by Parent Borrower and its Subsidiaries, determined on a Consolidated
basis, for such period with respect to leases of real and personal Property,
other than Capital Leases.

Reportable Event: with respect to any Pension Plan, any event set forth in
Section 4043(b) of ERISA or the regulations thereunder (other than a Reportable
Event as to which the 30 day notice requirement is waived by the PBGC under
applicable regulations).

Required Lenders: at any time prior to the Commitment Termination Date, Lenders
having Commitment Amounts greater than or equal to 51% of the Aggregate
Commitment Amount and, at all other times, Lenders having Loans outstanding
greater than or equal to 51% of the Aggregate Credit Exposure.

Required Payment: as defined in Section 3.9.

18

 

Responsible Officer: any Financial Officer, principal accounting officer,
comptroller or any other officer of Parent Borrower with responsibility for the
administration of the relevant portion of this Agreement.

Restricted Distribution: (a) any retirement, redemption, purchase, or other
acquisition or retirement for value of any Capital Stock (except if effectuated
by the issuance of Capital Stock acquired upon the conversion or exercise
thereof), (b) the declaration or payment of any dividend or distribution in
cash or property on or with respect to any Capital Stock (other than dividends
payable solely by the issuance of shares of such issuer’s Capital Stock),
excluding, however, (i) any such dividend, distribution, or payment on or with
respect to the Voting Stock of a Subsidiary with respect to which Parent
Borrower or one or more of its Subsidiaries participates in the same proportion
as its ownership percentage of all outstanding Voting Stock of such issuer;
(ii) any such dividend, distribution, payment on or with respect to, or an
acquisition of the publicly-traded common stock of Parent Borrower; (iii) any
such dividend, distribution, payment on or with respect to Capital Stock of
Parent Borrower which is not publicly traded, provided the aggregate amount of
such distributions, dividends and payments pursuant to this item (iii) during
any fiscal year of Parent Borrower shall not exceed $10,000,000, and (iv) a BGS
Disposition.

Revolving Credit Exposure: with respect to any Lender, as of any date of
determination, the sum as of such date of the outstanding principal amount of
such Lender’s Revolving Credit Loans (determined, in the case of each Alternate
Currency Loan, on the basis of the Currency Equivalent in Dollars thereof).

Revolving Credit Loan and Revolving Credit Loans: as defined in Section 2.1.

SEC: the Securities and Exchange Commission or any Governmental Authority
succeeding to the functions thereof.

Senior Indebtedness: with respect to each Borrower, all Indebtedness of such
Borrower which is not expressed to be subordinate or junior in rank to other
Indebtedness of such Borrower.

Senior Leverage Ratio: the Leverage Ratio recalculated by excluding
Subordinated Indebtedness from the Funded Debt component thereof.

Significant Subsidiary: any Domestic Subsidiary that meets any of the following
conditions, computed for, and as of the end of, the most recently completed
four fiscal quarters of Parent Borrower for which financial statements have
been delivered pursuant to Section 7.1: (a) such Subsidiary’s proportionate
share of the total assets of Parent Borrower and its Domestic Subsidiaries is
at least ten percent (10%); (b) such Subsidiary’s proportionate share of the
total revenues of Parent Borrower and its Domestic Subsidiaries is at least ten
percent (10%); or (c) such Subsidiary’s proportionate share of the total net
income of Parent Borrower and its Domestic Subsidiaries from continuing
operations and before extraordinary items and income taxes is at least ten
percent (10%). All such computations shall be determined on a Consolidated

19

 

basis, with respect to Parent Borrower and its Domestic Subsidiaries only, in
accordance with GAAP.

Special Counsel: St. John & Wayne, L.L.C., special counsel to the Agent.

Sterling Borrower: any Borrower which is organized under the laws of, and has
its principal office in, the United Kingdom.

Sterling Pounds: freely transferable lawful money of the United Kingdom.

Subordinated Indebtedness: Any unsecured Indebtedness of Parent Borrower or any
of its Subsidiaries (a) no part of the principal of which is stated to be
payable or is required to be paid (whether by way of mandatory sinking fund,
mandatory redemption, mandatory prepayment or otherwise) prior to the
expiration of six months after the Commitment Termination Date and the payment
of the principal of and interest on which and other obligations of the obligor
or obligors in respect thereof are subordinated to the prior payment in full of
the Obligations on terms and conditions first approved in writing by the
Required Lenders, and (b) otherwise containing terms, covenants and conditions
satisfactory in form and substance to the Required Lenders, as evidenced by
their prior written approval thereof.

Subsidiary: as to any Person, any corporation, association, partnership, joint
venture or other business entity of which such Person or any Subsidiary of such
Person, directly or indirectly, owns at least a majority (by number of votes)
of the outstanding Voting Stock. Unless the context otherwise clearly requires
any reference to a “Subsidiary” is a reference to a Subsidiary of Parent
Borrower. Notwithstanding the foregoing, this definition may be modified as
provided in Section 8.9.

Subsidiary Borrower: as defined in the preamble of this Agreement.

Subsidiary Borrower Obligations: at any time with respect to any Subsidiary
Borrower, the principal amount outstanding at such time of the Loans made to
such Subsidiary Borrower, together with all accrued interest thereon and all
other sums due and owing at such time from such Subsidiary Borrower under the
Loan Documents.

Swingline Commitment: Swingline Lender’s obligation to make Swingline Loans
pursuant to Section 2.11, in an aggregate outstanding principal amount, not to
exceed $5,000,000, as such amount may be reduced from time to time in
accordance with the terms hereof.

Swingline Lender: Fleet, together with its respective successors and assigns.

Swingline Loan: a loan, made by Swingline Lender to Parent Borrower pursuant
to Section 2.11.

Target Day: a day on which the Trans-European Automated Real time Gross
Settlement Express Transfer System (TARGET) is operating.

20

 

Tax: any present or future tax, levy, impost, duty, charge, fee, deduction or
withholding of any nature and whatever called, by a Governmental Authority, on
whomsoever and wherever imposed, levied, collected, withheld or assessed.

Termination Event: with respect to any Pension Plan, (a) a Reportable Event,
(b) the termination of a Pension Plan, or the filing of a notice of intent to
terminate a Pension Plan, or the treatment of a Pension Plan amendment as a
termination under Section 4041(c) of ERISA, (c) the institution of proceedings
to terminate a Pension Plan under Section 4042 of ERISA, or (d) the appointment
of a trustee to administer any Pension Plan under Section 4042 of ERISA.

Titled Agents: the Syndication Agent, the Documentation Agent and the Arranger.

Treaty: the Treaty establishing the European Economic Community being the
Treaty of Rome of March 25, 1957, as amended by the Single European Act 1986
and the Maastricht Treaty (which was signed on February 7, 1992 and came into
force on November 1, 1993), as amended, varied or supplemented from time to
time.

Unfunded Pension Liabilities: with respect to any Pension Plan, at any date of
determination, the amount determined by taking the accumulated benefit
obligation, as disclosed in accordance with Statement of Accounting Standards
No. 87, “Employers’ Accounting for Pensions”, over the fair market value of
Pension Plan assets.

United States: the United States of America (including the states thereof and
the District of Columbia).

Unrecognized Retiree Welfare Liability: with respect to any Employee Benefit
Plan that provides postretirement benefits other than pension benefits, the
amount of the transition obligation, as determined in accordance with Statement
of Financial Accounting Standards No. 106, “Employers’ Accounting for
Postretirement Benefits Other Than Pensions,” as of the most recent valuation
date, that has not been recognized as an expense in an income statement of the
Parent Borrower and its Consolidated Subsidiaries, provided that prior to the
date such Statement is applicable to the Parent Borrower, such amount shall be
based on an estimate made in good faith of such transition obligation.

Voting Stock: Capital Stock or similar interests, of any class or classes
(however designated), the holders of which are at the time entitled, as such
holders, to vote for the election of a majority of the members of the Managing
Person, whether or not the right to vote exists by reason of the happening of a
contingency.

21

 

	1.2.	 	PRINCIPLES OF CONSTRUCTION

         (a)  All terms defined in a Loan Document shall have the meanings given
such terms therein when used in the other Loan Documents or any certificate,
opinion or other document made or delivered pursuant thereto, unless otherwise
defined therein.

         (b)  As used in the Loan Documents and in any certificate, opinion or other
document made or delivered pursuant thereto, accounting terms not defined in
Section 1.1, and accounting terms partly defined in Section 1.1, to the extent
not defined, shall have the respective meanings given to them under GAAP. If at
any time any change in GAAP would affect the computation of any financial ratio
or requirement set forth in this Agreement, the Agent, the Lenders and Parent
Borrower shall negotiate in good faith to amend such ratio or requirement to
reflect such change in GAAP (subject to the approval of the Required Lenders),
provided that, until so amended, (i) such ratio or requirement shall continue
to be computed in accordance with GAAP prior to such change therein and (ii)
Parent Borrower shall provide to the Agent and the Lenders financial statements
and other documents required under this Agreement or as reasonably requested
hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP.

         (c)  The words “hereof”, “herein”, “hereto” and “hereunder” and similar
words when used in a Loan Document shall refer to such Loan Document as a whole
and not to any particular provision thereof, and Section, schedule and exhibit
references contained therein shall refer to Sections thereof or schedules or
exhibits thereto unless otherwise expressly provided therein.

         (d)  The phrase “may not” is prohibitive and not permissive.

         (e)  Unless the context otherwise requires, words in the singular number
include the plural, and words in the plural include the singular.

         (f)  Unless specifically provided in a Loan Document to the contrary, any
reference to a time shall refer to such time in New York.

         (g)  Unless specifically provided in a Loan Document to the contrary, in
the computation of periods of time from a specified date to a later specified
date, the word “from” means “from and including” and the words “to” and “until”
each means “to but excluding”.

         (h)  The words “include” and “including”, when used in each Loan Document,
shall mean that the same shall be included “without limitation”, unless
otherwise expressly provided therein.

	2.	 	AMOUNT AND TERMS OF LOANS
	 
	2.1.	 	REVOLVING CREDIT LOANS

         (a)  Agreement to Make Revolving Credit Loans. Subject to the terms and
conditions hereof, each Lender severally agrees from time to time during the
Commitment Period to make revolving credit loans to one or more of the
Borrowers in Dollars or in an Alternate Currency

22

 

(each a “Revolving Credit
Loan” and, as the context may require, collectively with all other Revolving
Credit Loans of such Lender and with the Revolving Credit Loans of all other
Lenders, the “Revolving Credit Loans”); provided, however, that (i) immediately
after giving effect thereto, (A) the Aggregate Credit Exposure shall not
exceed the Aggregate Commitment Amount, and (B) with respect to each Lender,
such Lender’s Revolving Credit Exposure shall not exceed such Lender’s
Commitment Amount and (ii) such Revolving Credit Loan, (A) if to be made in
Euros or if a Dollar Revolving Credit Loan, shall be made to any Borrower, (B)
if to be made in Sterling Pounds, shall be made to a Sterling Borrower or any
Domestic Borrower, (C) if to be made in Canadian Dollars, shall be made to a
Canadian Borrower or any Domestic Borrower, (D) if to be made in Japanese Yen,
shall be made in to a Japanese Borrower or any Domestic Borrower, and (v) if to
be made in any other Currency that becomes an Alternate Currency pursuant to
Section 2.10, shall be made to any Domestic Borrower or to any other Borrower
which is organized under the laws, and has its principal office in, the
national jurisdiction of such Currency. During the Commitment Period,
Borrowers may borrow, prepay in whole or in part and reborrow Revolving Credit
Loans under the Commitments, all in accordance with the terms and conditions of
this Agreement.

         (b)  Types of Revolving Credit Loans. Subject to the provisions of
Sections 2.3 and 3.3, Revolving Credit Loans may be made as (i) one or more ABR
Advances, (ii) one or more Eurodollar Advances, (iii) Alternate Currency
Advances, or (iv) a combination thereof. Each Revolving Credit Loan, together
with all accrued and unpaid interest thereon, shall mature and be due and
payable on the Commitment Termination Date or such earlier date upon which the
Commitments shall have been terminated in accordance herewith.

	2.2.	 	MINIMUM AMOUNT OF EACH BORROWING AND MAXIMUM AMOUNT OF FIXED RATE LOANS

         (a)  Minimum Amounts of Each Borrowing. Notwithstanding anything to the
contrary contained herein, (i) each ABR Advance made on a Borrowing Date shall
not be less than $1,000,000 or such amount plus a whole multiple of $1,000,000
in excess thereof, (ii) each Eurodollar Advance made on a Borrowing Date, when
aggregated with all amounts to be converted to a Eurodollar Advance on such
date and having the same Euro Interest Period as such first Eurodollar Advance
shall not be less than $5,000,000 or such amount plus a whole multiple of
$1,000,000 in excess thereof, and (iii) each Alternate Currency Advance made on
a Borrowing Date, when aggregated with all amounts to be converted to an
Alternate Currency Advance on such date and having the same Euro Interest
Period, and being denominated in the same Currency, as such first Alternate
Currency Advance shall not be less than an amount in such Currency having a
Currency Equivalent of approximately $5,000,000 or such amount plus an amount
in such Currency
having a Currency Equivalent of a whole multiple of approximately
$1,000,000 in excess thereof.

         (b)  Maximum Number of Eurodollar and Alternate Currency Advances. At no
time shall the aggregate outstanding number (whether as a result of borrowings
or conversions) of all Eurodollar and Alternate Currency Advances exceed ten.

23

 

	2.3.	 	BORROWING REQUEST – REVOLVING CREDIT LOANS

Whenever a Borrower desires to borrow Revolving Credit Loans hereunder, such
Borrower, or, if such Borrower is a Subsidiary Borrower, the Parent Borrower,
on behalf of such Subsidiary Borrower, shall notify the Agent, which notice
shall be irrevocable, no later than (i) 10:00 a.m. on the proposed Borrowing
Date, in the case of ABR Advances, (ii) 11:00 a.m. three Alternate Currency
Business Days prior to the proposed Borrowing Date, in the case of Eurodollar
Advances, and (iii) 11:00 a.m. three Alternate Currency Business Days prior to
the proposed Borrowing Date, in the case of Alternate Currency Advances,
specifying (A) the proposed Borrowing Date, (B) whether the borrowing is to be
of one or more ABR Advances, one or more Eurodollar Advances, one or more
Alternate Currency Advances, or a combination thereof, and the amount of each
thereof (stated in the applicable Currency), and (C) the Euro Interest Period
for each Eurodollar Advance and each Alternate Currency Advance, which notice
shall be promptly confirmed by delivery to the Agent of a Borrowing Request.
The Agent shall promptly notify each Lender (by telephone or otherwise, such
notice to be confirmed by facsimile or other writing) of such Borrowing
Request.

	2.4.	 	DISBURSEMENT OF FUNDS

         (a)  Revolving Credit Loans. No later than 12:00 noon (local time in the
city in which the proceeds thereof are to be made available in accordance with
the terms hereof, in the case of an Alternate Currency Loan, and New York City
time, in the case of a Dollar Revolving Credit Loan) on the Borrowing Date
specified in the Borrowing Request therefor, each Lender will make available
its Commitment Percentage of the Revolving Credit Loans requested to be made on
such Borrowing Date in the applicable Currencies. All such Revolving Credit
Loans shall be made available in immediately available funds at the applicable
Agent Payment Office, and the Agent will make available to the applicable
Borrower at such Agent Payment Office, in the applicable Currencies, and in
immediately available funds, the aggregate of the amounts so made available by
the Lenders prior to 2:00 p.m. (local time in the city in which the proceeds
thereof are to be made available in accordance with the terms hereof, in the
case of an Alternate Currency Loan, and New York City time, in the case of a
Dollar Revolving Credit Loan) on such Borrowing Date and to the extent of funds
actually received by the Agent.

         (b)  Failure to Fund. Unless the Agent shall have received prior notice
from a Lender (by telephone or otherwise, such notice to be confirmed by
facsimile or other writing) that such Lender will not make available to the
Agent the amount of such Lender’s Commitment Percentage of the Revolving
Credit Loans to be made on a Borrowing Date, the Agent may assume that such
Lender has made such amount available to the Agent on such Borrowing Date,
provided that such Lender received notice thereof from the Agent in accordance
with the terms hereof, and the Agent may, in reliance upon such assumption,
make available to the applicable Borrower on such Borrowing Date a
corresponding amount. If and to the extent such Lender shall not have so made
such amount available to the Agent, such Lender and such Borrower severally
agree to pay to the Agent, forthwith on
demand, such corresponding amount (to the extent not previously paid by
the other), together with interest thereon for each day from the date such
amount is made available to such Borrower until the date such amount is paid to
the Agent,

24

 

at a rate per annum equal to, in the case of such Borrower, the
applicable interest rate set forth in Section 3.1 and, in the case of such
Lender, the Federal Funds Rate (or, in the case of each Alternate Currency
Loan, a rate determined by the Agent to be reflective of the all-in cost of
funds of the Agent to fund such Alternate Currency Loan). Any such payment by
such Borrower shall be without prejudice to its rights against such Lender. If
such Lender shall pay to the Agent such corresponding amount, such amount so
paid shall constitute such Lender’s Revolving Credit Loan as part of such
Revolving Credit Loans for purposes of this Agreement, which Revolving Credit
Loan shall be deemed to have been made by such Lender on the applicable
Borrowing Date. The Agent shall be entitled to recover any and all actual
losses and damages (including, without limitation, reasonable attorneys’ fees)
from any Lender failing to so repay on demand of the Agent. The Agent may set
off the obligations of a Lender under this Section against any distributions or
payments in respect of Loans which the Agent would otherwise make available to
such Lender at any time. To the extent and during the time period in which any
Lender fails to provide or delays in providing its respective payment to the
Agent pursuant to Section 2.4(a) or this Section 2.4(b), such Lender’s
percentage of all payments in respect of Revolving Credit Loans (but not its
Commitment with respect to future Loans) shall decrease to reflect the actual
percentage which its actual Revolving Credit Exposure bears to the Aggregate
Credit Exposure for all Revolving Credit Loans.

         (c)  Borrower Accounts. Each Loan made to a Borrower shall be made to the
applicable payment account specified on Exhibit I or the Borrower Addendum, if
any, executed and delivered with respect to such Borrower pursuant to Section
2.13, as the case may be, or such other account which it may from time to time
specify by written notice to the Agent and the Lenders.

	2.5.	 	PAYMENTS

         (a)  Loans and Fees. Except as otherwise specifically provided herein, each
payment, including each prepayment, of principal and interest on the Revolving
Credit Loans and the Facility Fee shall be made by Borrowers to the Agent at
the applicable Agent Payment Office in Dollars immediately available to the
Agent at such office (without counterclaim, setoff or other defense and free
and clear of, without any deduction or withholding for, taxes or other
payments) by 12:00 noon (local time in the city in which such Agent Payment
Office is located) on the due date for such payment. Subject to Section
9.2(b), promptly upon receipt by the Agent of each payment, including each
prepayment, pursuant to this Section, the Agent shall remit such payment in
like funds as received as follows: (i) in the case of the Facility Fee, to each
Lender according to its Commitment Percentage, and (ii) in the case of
principal and interest on the Revolving Credit Loans, to each Lender pro rata
according to the amount of principal or interest on Revolving Credit Loans, as
the case may be, which is then due and payable.

         (b)  Late Payments. The failure of the applicable Borrower to make any
such payment by such time shall not constitute a Default hereunder, provided
that such payment is made on such due date, but any such payment made after
2:00 p.m. (local time in the city in which such payment is to be made in
accordance with the terms hereof) on such due date shall be deemed to have been
made on the next Business Day or Alternate Currency Business Day, as the case
may

25

 

be, for the purpose of calculating interest on amounts outstanding on the
applicable Revolving Credit Loans.

         (c)  Alternate Currencies. Notwithstanding anything to the contrary
contained in any Loan Document, each payment (including each prepayment) of
principal and interest on each Alternate Currency Loan shall be made solely in
the Currency in which such Alternate Currency Loan is denominated.

         (d)  Extension of Due Dates. If any payment hereunder or under the Loans
shall be due and payable on a day which is not a Business Day or an Alternate
Currency Business Day, as the case may be, the due date thereof (except as
otherwise provided herein) shall be extended to the next Business Day or
Alternate Currency Business Day, as the case may be, and (except with respect
to payments in respect of the Facility Fee) interest shall be payable at the
applicable rate specified herein during such extension.

	2.6.	 	TERMINATION OR REDUCTION OF COMMITMENTS

         (a)  Voluntary Reductions. Parent Borrower shall have the right, upon at
least five Business Days’ prior written notice to the Agent, (i) at any time
when there shall be no Loans outstanding, to terminate the Commitments of all
Lenders and the Swingline Commitment of the Swingline Lender, or (ii) at any
time and from time to time when the Aggregate Commitment Amount shall exceed
the aggregate outstanding principal amount of all Loans (determined, in the
case of each Alternate Currency Loan, on the basis of the Currency Equivalent
in Dollars thereof) to reduce permanently the Aggregate Commitment Amount by a
sum not greater than the amount of such excess; provided, however, that each
partial reduction shall be in an amount equal to $5,000,000 or such amount plus
a whole multiple of $1,000,000 in excess thereof.

         (b)  Mandatory Reduction. The Aggregate Commitment Amount shall be reduced
as necessary to satisfy the conditions of a BGS Disposition.

         (c)  In General. Each reduction of the Aggregate Commitment Amount shall be
made by reducing each Lender’s Commitment Amount by a sum equal to such
Lender’s Commitment Percentage of the amount of such reduction.

	2.7.	 	PREPAYMENTS OF THE LOANS

         (a)  Voluntary Prepayments. Each Borrower may, at its option, prepay the
Revolving Credit Loans made to such Borrower, without premium or penalty (but
subject to Section 3.4), in full at any time or in part from time to time, in
each case by notifying, or, if such Borrower is a Subsidiary Borrower, causing
the Parent Borrower, on behalf of such Subsidiary Borrower, to notify, the
Agent in writing at least one
Business Day, in the case of a prepayment of an ABR Advance, and three
Alternate Currency Business Days, in the case of a prepayment of a Eurodollar
Advance or an Alternate Currency Advance, in each case prior to the proposed
prepayment date, specifying, with respect to each Advance to be prepaid, the
amount to be prepaid (stated in the applicable Currency) and the date of
prepayment. Each such notice given by a Borrower or the Parent Borrower, on
behalf of such Borrower, pursuant to this Section 2.7(a) shall be irrevocable.
Upon receipt of each such notice, the Agent shall promptly notify

26

 

 each Lender
thereof. Each partial prepayment pursuant to this Section 2.7(a) shall be (i)
in the case of ABR Advances, in a minimum amount of $1,000,000 or such amount
plus a whole multiple of $1,000,000 in excess thereof, and (ii) in the case of
Eurodollar Advances, in a minimum amount of $5,000,000 or such amount plus a
whole multiple of $1,000,000 in excess thereof, and (iii) in the case of
Alternate Currency Advances, in a minimum amount in the applicable Currency
having a Currency Equivalent of approximately $5,000,000 or such amount plus an
amount in the applicable Currency having a Currency Equivalent of a whole
multiple of approximately $1,000,000 in excess thereof.

         (b)  Mandatory Prepayments. If at any time the Aggregate Credit Exposure
shall exceed the Aggregate Commitment Amount, then Borrowers shall prepay the
Loans on such day such that, immediately after giving effect thereto, the
Aggregate Credit Exposure shall not exceed the Aggregate Commitment Amount;
provided, however, to the extent any excess of Aggregate Credit Exposure over
Aggregate Commitment Amount is attributable to changes in the Currency
Equivalent in Dollars of an Alternate Currency Advance occurring after the
applicable Borrowing Date thereof, such excess shall be repaid by Borrowers on
the last day of each calendar quarter to the extent such excess exceeds 5% of
the Aggregate Commitment Amount. Additionally, a mandatory prepayment shall be
made as necessary to satisfy the conditions of a BGS Disposition.

         (c)  In General. Simultaneously with each prepayment hereunder, Borrowers
shall prepay all accrued and unpaid interest on the amount prepaid through the
date of prepayment.

	2.8.	 	USE OF PROCEEDS

Each Borrower agrees that the proceeds of the Loans shall be used solely,
directly or indirectly, (a) to repay the Indebtedness under the Existing Loan
Agreement, and (b) for the general corporate purposes of Parent Borrower and
its Subsidiaries. Notwithstanding anything to the contrary contained in any
Loan Document, each Borrower agrees that no part of the proceeds of any Loan
will be used, directly or indirectly, for a purpose which violates any law,
rule or regulation of any Governmental Authority, including the provisions of
Regulations T, U or X of the Board of Governors of the Federal Reserve System,
as amended.

	2.9.	 	RECORDS

         (a)  Lender’s Records. Each Lender is hereby authorized to record on the
schedule annexed to and constituting part of the promissory note referred to in
Section 2.9(d) that is delivered to it by a Borrower, with respect to each Loan
made by it to such Borrower: (i) the date of such Loan, (ii) whether the
Revolving Credit Loan to such
Borrower is comprised of one or more ABR Advances, one or more Eurodollar
Advances, one or more Alternate Currency Advances, or a combination thereof,
and the amount of each thereof (stated in the applicable Currency), (iii) the
interest rate (without regard to the Applicable Margin) and the Euro Interest
Period applicable to each Eurodollar Advance and each Alternate Currency
Advance extended to such Borrower, and (iv) each payment and prepayment of the
principal of such Loan.

27

 

         (b)  Agent’s Records. The Agent shall keep records regarding the Loans and
the Loan Documents in accordance with its customary procedures for agented
credits.

         (c)  Prima Facie Evidence. The entries made in the records maintained
pursuant to Sections 2.9(a) and (b) shall, to the extent not prohibited by
applicable law, be prima facie evidence of the existence and amount of the
obligations of Borrowers recorded therein; provided that the failure of the
Agent or any Lender, as the case may be, to make any notation on its records
shall not affect the respective obligations of the Credit Parties in respect of
the Loan Documents.

         (d)  Notes. The Revolving Loans made by each Lender shall, in addition to
this Agreement, also be evidenced by a promissory note of each Borrower,
substantially in the form of Exhibit J, payable to the order of such Lender in
a principal amount equal to the amount of such Lender’s Commitment as
originally in effect and otherwise duly completed.

	2.10.	 	ADDITIONAL ALTERNATE CURRENCIES

Provided that no Default or Event of Default has occurred and is then
continuing, Parent Borrower may from time to time request that any currency
which is not then an Alternate Currency become an Alternate Currency by
submitting a Currency Addendum, with respect to such currency to the Agent.
Upon receipt of such Currency Addendum, the Agent shall confirm such Currency
Addendum by signing a copy thereof and shall deliver a copy thereof to Parent
Borrower, each Lender and each Reference Lender. In the event that all of the
Lenders consent to such currency becoming an Alternate Currency in writing
delivered to the Agent and Parent Borrower, then such currency shall become an
Alternate Currency.

	2.11.	 	SWINGLINE LOANS

         (a)  Swingline Loans. Subject to the terms and conditions hereof, during
the period from the Effective Date to but excluding the Commitment Termination
Date, the Swingline Lender agrees to make Swingline Loans to the Parent
Borrower in Dollars in an aggregate principal amount at any one time
outstanding up to, but not exceeding, the amount of the Swingline Commitment.
If at any time the aggregate principal amount of the Swingline Loans
outstanding at such time exceeds the Swingline Commitment in effect at such
time, Parent Borrower shall immediately pay the Agent for the account of the
Swingline Lender the amount of such excess. Notwithstanding anything to the
contrary contained herein,
(immediately after each such Loan is made and after giving effect to any
substantially concurrent application of the proceeds thereof to repay
outstanding Revolving Credit Loans), the Aggregate Credit Exposure shall not
exceed the Aggregate Commitment Amount. Subject to conditions of this
Agreement, Parent Borrower may borrow, repay and reborrow Swingline Loans
hereunder.

         (b)  Procedure for Borrowing Swingline Loans. Whenever Parent Borrower
desires to borrow a Swingline Loan hereunder, Parent Borrower shall give the
Agent and the Swingline Lender notice pursuant to a Notice of Swingline
Borrowing or telephone notice of each borrowing of a Swingline Loan. Each
Notice of Swingline Borrowing shall be delivered to the Swingline Lender no
later than 2:00 p.m. on the proposed date of such borrowing. Any such

28

 

telephone notice shall include all information to be specified in a written
Notice of Swingline Borrowing and shall be promptly confirmed in writing by
Parent Borrower pursuant to a Notice of Swingline Borrowing sent to the
Swingline Lender by telecopy on the same day of the giving of such telephone
notice. Not later than 3:00 p.m. on the date of the requested Swingline Loan
the Swingline Lender shall make available such Swingline Loan in immediately
available funds to the Agent. After the Agent’s receipt of such funds and upon
fulfillment of the applicable conditions set forth in Sections 5 and 6, the
Agent will, and Parent Borrower hereby, irrevocably authorizes the Agent to,
disburse the proceeds of such Swingline Loan by making such funds available to
Parent Borrower by wire transfer to such account of Parent Borrower as Parent
Borrower and Agent may agree from time to time.

         (c)  Interest. Swingline Loans shall bear interest at a per annum rate
equal to the Alternate Base Rate (and shall not be entitled to be converted
into Fixed Rate Loans), which will be subject to increase if there is an Event
of Default in accordance with the terms and provisions of Section 3.1(b).
Interest payable on Swingline Loans is solely for the account of the Swingline
Lender. All accrued and unpaid interest on Swingline Loans shall be payable on
the dates and in the manner provided in Section 3.1 with respect to interest on
ABR Advances.

         (d)  Swingline Loan Amount, Etc. Each Swingline Loan shall be in the
minimum amount of $500,000 and integral multiples thereof or such other minimum
amounts agreed to by the Swingline Lender and Parent Borrower. Any voluntary
prepayment of a Swingline Loan must be in integral multiples $500,000 or the
aggregate principal amount of all outstanding Swingline Loans (or such other
minimum amounts upon which the Swingline Lender and Parent Borrower may agree)
and in connection with any such prepayment, Parent Borrower must give the
Swingline Lender prior written notice thereof no later than 10:00 a.m. on the
date of such prepayment. The Swingline Loans shall, in addition to this
Agreement, be evidenced by the Swingline Note to be duly and validly executed
and delivered by Parent Borrower substantially in the form of Exhibit K.

         (e)  Repayment and Participation of Swingline Loans. Parent Borrower
agrees to repay each Swingline Loan to the Swingline Lender within one Business
Day of demand therefore by the Swingline Lender and in any event, within thirty
days after the date such Swingline Loan was made. Notwithstanding the
foregoing, Parent Borrower shall repay the entire outstanding principal
amount of, and all accrued but unpaid interest on the Swingline Loans on
the Commitment Termination Date (or such earlier date as the Swingline Lender
and Parent Borrower may agree in writing). Unless both the Swingline Lender
and Parent Borrower notify the Agent to the contrary, Parent Borrower shall be
deemed to have requested a borrowing of Revolving Credit Loans (which shall be
ABR Advances) from the Lenders, in an amount equal to the principal balance of
each Swingline Loan, on the date such Swingline Loan is required to be repaid
in accordance with the terms of this Section 2.11(e). The limitations of
Section 2.2 shall not apply to any ABR Advances made pursuant to this
subsection. The Swingline Lender shall give notice to the Agent of any such
demand for repayment of a Swingline Loan not later than 12:00 noon on the date
that such repayment is due. No later than 1:00 p.m. on the date repayment of a
Swingline Loan is due (whether as a result of demand for repayment or as a
result of the expiration of 30 days from the date such Loan was made), each
Lender will make available to the Agent for the account of Swingline Lender,
in immediately

29

 

available funds, the proceeds of the ABR Advance to be made by
such Lender. The Agent shall pay the proceeds of such ABR Advance to the
Swingline Lender, which shall apply such proceeds to repay such Swingline Loan,
together with accrued but unpaid interest thereon. If the Lenders are
prohibited from making Loans required to be made under this subsection for any
reason, including without limitation, the occurrence of any of the Events of
Default described in Sections 9.1(g) or 9.1(h), each Lender shall purchase from
the Swingline Lender, without recourse or warranty, an undivided interest and
participation to the extent of such Lender’s Commitment Percentage of such
Swingline Loan, by directly purchasing a participation in such Swingline Loan
in such amount (regardless of whether the conditions precedent thereto set
forth in Section 6 are then satisfied, whether or not Parent Borrower has
submitted a Borrowing Request and whether or not the Commitments are then in
effect, any Event of Default exists or all the Loans have been accelerated) and
paying the proceeds thereof to the Agent for the account of the Swingline
Lender in Dollars and in immediately available funds. If such amount is not in
fact made available to the Swingline Lender by any Lender, the Swingline Lender
shall be entitled to recover such amount on demand from such Lender together
with accrued interest thereon for each day from the date of demand thereof, at
the Federal Funds Rate. If such Lender does not pay such amount forthwith upon
the Swingline Lender’s demand therefor and until such time as such Lender makes
the required payment, the Swingline Lender shall be deemed to continue to have
outstanding Swingline Loans in the amount of such unpaid participation
obligation for all purposes of the Loan Documents (other than those provisions
requiring the other Lenders to purchase a participation therein). Further,
such Lender shall be deemed to have assigned any and all payments made of
principal and interest on its Loans, and any other amounts due to it hereunder,
to the Swingline Lender to fund Swingline Loans in the amount of the
participation in Swingline Loans that such Lender failed to purchase pursuant
to this Section until such amount has been purchased (as a result of such
assignment or otherwise). A Lender’s obligation to purchase such a
participation in a Swingline Loan shall be absolute and unconditional and shall
not be affected by any circumstance whatsoever, including, without limitation,
(i) any claim of setoff, counterclaim, recoupment, defense or other right which
such Lender or any other Person may have or claim against the Agent, the
Swingline Lender or any other Person whatsoever, (ii) the occurrence or
continuation of a Default or Event of Default (including without limitation,
any of the Defaults or Events of Default described in Sections 9.1(g) or 9.1
(h)) or the termination of any Lender’s Commitment, (iii) the existence (or
alleged existence) of an event or condition which has had or could have a
Material Adverse Effect, (iv) any breach of any Loan Document
by the Agent, any Lender or any Credit Party or (v) any other
circumstance, happening or event whatsoever, whether or not similar to any of
the foregoing.

	2.12.	 	INCREASE OF COMMITMENTS

Parent Borrower shall have the right to request increases in the Aggregate
Commitment Amount (provided that the aggregate amount of increases in the
Commitments pursuant to this Section shall not exceed $50,000,000 so that the
Aggregate Commitment Amount of all Lenders shall not exceed $225,000,000 as so
increased) by providing written notice to the Agent, which notice shall be
irrevocable once given. Such increase in the Aggregate Commitment Amount must
be in the amount of $10,000,000 or any integral multiple of $5,000,000 in
excess thereof, or the then unused balance of the increase of the Aggregate
Commitment Amount permitted under this Section. The Agent shall promptly
notify each Lender of any such request. Each existing

30

 

Lender shall have the
right to increase its Commitment by an amount so that such Lender’s Commitment
Percentage shall not be decreased as a result of such requested increase in the
Aggregate Commitment Amount. Each Lender shall notify the Agent within 10
Business Days after receipt of the Agent’s notice whether such Lender wishes to
increase the amount of its Commitment. If a Lender fails to deliver any such
notice to the Agent within such time period, then such Lender shall be deemed
to have declined to increase its Commitment. No Lender shall be required to
increase its Commitment and any new Lender becoming a party to this Agreement
in connection with any such requested increase must be an Eligible Assignee and
comply with Section 12.6, including, without limitation, obtaining the consent
of the Agent to its so becoming a Lender. In the event a new Lender becomes a
party to this Agreement, or if any existing Lender agrees to increase its
Commitment, such Lender shall on the date it becomes a Lender hereunder (or
increases its Commitment, in the case of an existing Lender) (and as a
condition thereto) purchase from the other Lenders its Commitment Percentage
(as determined after giving effect to the increase of Commitments) of any
outstanding Revolving Credit Loans, by making available to the Agent for the
account of such other Lenders, in same day funds, an amount equal to the sum of
(x) the portion of the outstanding principal amount of such Revolving Credit
Loans to be purchased by such Lender plus (y) interest accrued and unpaid to
and as of such date on such portion of the outstanding principal amount of such
Revolving Credit Loans. Borrowers shall pay to the Lenders amounts payable, if
any, to such Lenders under Section 3.4 as a result of the prepayment of any
such Revolving Credit Loans. No increase of the Commitments may be effected
under this Section if either (i) a Default or Event of Default shall be in
existence on the effective date of such increase or (ii) any representation or
warranty made or deemed made by any Credit Party in any Loan Document is not
(or would not be) true or correct on the effective date of such increase
(except for representations or warranties which expressly relate solely to an
earlier date). In connection with any increase in the aggregate amount of the
Commitments pursuant to this Section 2.12, (A) any Lender becoming a party
hereto shall execute such documents and agreements as the Agent may reasonably
request, and (B) Borrowers shall make appropriate arrangements so that each new
Lender, and any existing Lender increasing its Commitment, receives a new or
replacement Note, as appropriate, in the amount of such Lender’s Commitment
within two Business Days of the effectiveness of the applicable increase in the
Aggregate Commitment Amount.

	2.13.	 	ADDITION AND REMOVAL OF SUBSIDIARY BORROWERS

         (a)  Addition of Subsidiary Borrowers. Provided that no Default or Event of
Default has occurred and is then continuing, the Parent Borrower may from time
to time direct that any of its Subsidiaries which is not then a Subsidiary
Borrower become a Subsidiary Borrower by submitting a Borrower Addendum to the
Agent with respect to such Subsidiary, together with (i) a certificate, dated
the date of such Borrower Addendum, of the Secretary or Assistant Secretary of
such Subsidiary and substantially in the form of, and with substantially the
same attachments as, the certificate which would have been required under
Section 5.1 if such Subsidiary had become a party hereto on the Effective Date,
and (ii) an opinion of counsel (including, in the case of a foreign Subsidiary,
an opinion of foreign local counsel) to such Subsidiary in all respects
reasonably satisfactory to the Agent, provided that, to the extent that any
such certificate, attachment or opinion is not in English, it shall be
accompanied by a certified English translation thereof. Upon receipt of such
Borrower Addendum and all of the supporting items

31

 

referred to in clauses (i)
and (ii) of this Section 2.13(a), the Agent shall confirm such Borrower
Addendum by signing a copy thereof and shall deliver a copy thereof to the
Parent Borrower and each Lender, at which time such Subsidiary shall become a
“Subsidiary Borrower” hereunder.

         (b)  Removal of Subsidiary Borrowers. The Parent Borrower may from time to
time direct that any Subsidiary Borrower cease to be a Subsidiary Borrower by
submitting written notice thereof to the Agent. Upon receipt of such notice,
the Agent shall confirm such notice by signing a copy thereof and shall deliver
a copy thereof to the Parent Borrower and each Lender, at which time such
Subsidiary Borrower shall cease to be a “Subsidiary Borrower” hereunder,
provided that, immediately after giving effect thereto, the Subsidiary Borrower
Obligations of such Subsidiary Borrower shall have been paid in full.

	3.	 	INTEREST, FEES, CONVERSIONS AND YIELD PROTECTIONS
	 
	3.1.	 	INTEREST RATES AND PAYMENT DATES

         (a)  Prior to Maturity. Except as otherwise provided in Section 3.1(b),
prior to maturity, the Revolving Credit Loans shall bear interest on the
outstanding principal amount thereof at the applicable interest rate or rates
per annum set forth below:

	 	 	 
	REVOLVING CREDIT LOANS	 	RATE
	
	 	

	Each ABR Advance	 	
Alternate Base Rate
	
	
	
	

	Each Eurodollar Advance	 	
Eurodollar Rate applicable thereto plus
the Applicable Margin
	
	
	
	

	Each Alternate Currency Advance	 	
Alternate Currency Rate applicable thereto
plus the Applicable Margin

         (b)  Default Rate. Upon the occurrence and during the continuance of an
Event of Default under Section 9.1(a) or (b), the unpaid principal amount of
any overdue Loans shall bear interest payable on demand at a rate per annum
(whether before or after the entry of a judgment thereon) equal to 2% plus the
rate which would otherwise be applicable under Section 3.1(a) or 2.11(c), as
the case may be, and any overdue interest or other overdue amount payable under
the Loan Documents shall bear interest (whether before or after the entry of a
judgment thereon) payable on demand at a rate per annum equal to 2% plus the
Alternate Base Rate.

         (c)  In General. Interest on all Loans shall be calculated on the basis of
a 360-day year, except that interest on Alternate Currency Advances denominated
in Sterling Pounds shall be calculated on the basis of a 365 or 366-day year
(as the case may be), in each case for the actual number of days elapsed.
Except as otherwise provided in Section 3.1(b), interest shall be payable in
arrears on each Interest Payment Date and upon each payment (including
prepayment) of the Loans. Any change in the interest rate on the Loans
resulting from a change in the Alternate Base Rate or reserve requirements
shall become effective as of the opening of business on the day on which such
change shall become effective. Each determination of a rate of interest by the
Agent, or any Reference Lender, as the case may be, pursuant to the Loan
Documents shall be conclusive and binding on all parties hereto absent manifest
error. Interest payments in respect

32

 

of Alternate Currency Loans shall be
payable in the same respective Alternate Currency as such Loans.

         (d)  Substitution of Reference Lender. If at any time a Reference Lender
shall for any reason cease to be a Lender, such Reference Lender shall
thereupon cease to be a Reference Lender, and Parent Borrower shall promptly
appoint from among the Lenders a successor Reference Lender reasonably
acceptable to the Agent. Upon the acceptance of any appointment as Reference
Lender by a successor Reference Lender, such successor Reference Lender shall
automatically become a “Reference Lender”, and Parent Borrower shall promptly
notify the other Borrowers and Lenders thereof. Each Reference Lender shall use
its best efforts to furnish all quotations and other information, and to make
all determinations, in each case as contemplated to be furnished or made by it
under the Loan Documents, on a timely basis. To the extent that, for any
reason, such information shall not have been furnished, and such determinations
shall not have been made, by any Reference Lender, then the other Reference
Lenders (or, in the event that there is no other Reference Lender or Reference
Lenders, the Agent) shall furnish such information and make such
determinations, and the Agent shall promptly notify Borrowers and the Lenders
thereof.

	3.2.	 	FEES

         (a)  Facility Fee. Parent Borrower agrees to pay to the Agent, for the
account of each of the Lenders in accordance with each Lender’s Commitment
Percentage, a fee (the “Facility Fee”), during the Commitment Period, at a rate
per annum equal to the Applicable Fee Percentage on the average daily Aggregate
Commitment Amount, regardless of usage. The Facility Fee shall be payable (i)
quarterly in arrears on the last day of
each March, June, September and December during the Commitment Period,
commencing on the first such day following the Effective Date, (ii) on the date
of any reduction in the Aggregate Commitment Amount (to the extent of the
amount which shall have accrued on the amount of such reduction), and (iii) on
the Commitment Termination Date. The Facility Fee shall be calculated on the
basis of a 360-day year for the actual number of days elapsed.

         (b)  Agent’s Fees. Parent Borrower agrees to pay to the Agent for its own
account, such fees as have been agreed to in writing by Parent Borrower and
Agent.

	3.3.	 	CONVERSIONS

         (a)  In General. Each applicable Borrower may elect from time to time to
convert one or more Eurodollar Advances to ABR Advances by giving, or, if such
Borrower is a Subsidiary Borrower, by causing the Parent Borrower, on behalf of
such Subsidiary Borrower, to give, the Agent at least two Business Days’ prior
irrevocable notice of such election, specifying the amount to be converted,
provided, that any such conversion of Eurodollar Advances shall only be made on
the last day of the Euro Interest Period applicable thereto, except as
otherwise provided in Section 3.7. In addition, each applicable Borrower may
elect from time to time to convert (i) ABR Advances to Eurodollar Advances,
(ii) Eurodollar Advances to new Eurodollar Advances by selecting a new Euro
Interest Period therefor, and (iii) Alternate Currency Advances to new
Alternate Currency Advances in the same Currency by selecting a new Euro

33

 

Interest Period therefor, in each case by giving, or, if such Borrower is a
Subsidiary Borrower, by causing the Parent Borrower, on behalf of such
Subsidiary Borrower, to give the Agent at least three Alternate Currency
Business Days’ prior irrevocable notice of such election, specifying the amount
to be so converted and the initial Euro Interest Period relating thereto,
provided that any such conversion of ABR Advances to Eurodollar Advances shall
only be made on an Alternate Currency Business Day and, except as otherwise
provided in Section 3.7, any such conversion of Eurodollar Advances to new
Eurodollar Advances or Alternate Currency Advances to new Alternate Currency
Advances, as the case may be, shall only be made on the last day of the Euro
Interest Period applicable to the Eurodollar Advances or Alternate Currency
Advances, as the case may be, which are to be converted to such new Eurodollar
Advances or such new Alternate Currency Advances, as the case may be. Each such
notice shall be irrevocable and shall be promptly confirmed by delivery to the
Agent of a Notice of Conversion. The Agent shall promptly notify each Lender
(by telephone or otherwise, such notice to be confirmed by facsimile or other
writing) of each such election. Advances may be converted pursuant to this
Section in whole or in part, provided that (x) the amount to be converted to
each Eurodollar Advance, when aggregated with any Eurodollar Advance to be made
on such date in accordance with Section 2.3 and having the same Euro Interest
Period as such first Eurodollar Advance, shall equal no less than $5,000,000 or
such amount plus a whole multiple of $1,000,000 in excess thereof, and (y) the
amount to be converted to each Alternate Currency Advance, when aggregated with
any Alternate Currency Advance to be made on such date in accordance with
Section 2.3 and having the same Euro Interest Period, and being denominated in
the same applicable Currency, as such first Alternate Currency Advance, shall
equal no less than an amount in such Currency having a Currency Equivalent of
approximately
$5,000,000 or such amount plus an amount in such Currency having a
Currency Equivalent of a whole multiple of approximately $1,000,000 in excess
thereof.

         (b)  Conversions During an Event of Default. Notwithstanding anything in
this Agreement to the contrary, upon the occurrence and during the continuance
of an Event of Default, no Borrower shall have the right to elect to convert
any existing ABR Advance to a new Eurodollar Advance or to convert any existing
Eurodollar Advance to a new Eurodollar Advance. In such event, except as
otherwise provided in Section 3.7, (i) each ABR Advance shall be automatically
continued as an ABR Advance, (ii) each Eurodollar Advance shall be
automatically converted to an ABR Advance on the last day of the Euro Interest
Period applicable thereto, and (iii) each Alternate Currency Advance shall, on
the last day of the Euro Interest Period applicable thereto, be automatically
converted to a new Alternate Currency Advance in the same applicable Currency
with a one month Euro Interest Period.

         (c)  Effecting Conversions. Each conversion shall be effected by each
Lender by applying the proceeds of its new ABR Advance, new Eurodollar Advance
or new Alternate Currency Advance, as the case may be, to its Advances (or
portion thereof) being converted (it being understood that any such conversion
shall not constitute a borrowing for purposes of Sections 5 or 6).

         (d)  Failure to Elect Conversion. Notwithstanding anything to the contrary
contained in any Loan Document, if the applicable Borrower and, if such
Borrower is a Subsidiary Borrower, the Parent Borrower, on behalf of such
Subsidiary Borrower, shall have failed, for any

34

 

reason, to elect a Eurodollar
Advance or Alternate Currency Advance, as the case may be, under Section 2.3 or
this Section 3.3, as the case may be, in connection with any borrowing of new
Loans or expiration of a Euro Interest Period with respect to any existing
Eurodollar Advance or Alternate Currency Advance, as the case may be, the
amount of the Loans subject to such borrowing or such existing Eurodollar
Advance or Alternate Currency Advance, as the case may be, shall, except as
otherwise provided in Section 3.7, thereafter be (i) in the case of a
Eurodollar Advance, an ABR Advance, and (ii) in the case of an Alternate
Currency Advance, a new Alternate Currency Advance in the same applicable
Currency with a one month Euro Interest Period, in each case until such time,
if any, as such Borrower shall elect a new Eurodollar Advance or Alternate
Currency Advance, as the case may be, pursuant to this Section 3.3.

	3.4.	 	INDEMNIFICATION FOR LOSS

Notwithstanding anything contained herein to the contrary, (i) if any Borrower
shall fail for any reason to borrow or convert from or into any Fixed Rate Loan
on the date specified therefor in the applicable Borrowing Request or Notice of
Conversion, as the case may be, or (ii) if any Fixed Rate Loan to such
Borrower shall terminate for any reason prior to the last day of the Euro
Interest Period applicable thereto, or (iii) if such Fixed Rate Loan is repaid
or prepaid, in whole or in part, for any reason (including, without limitation,
an acceleration of the Loans pursuant to Section 9.2 herein) prior to the last
day of the Euro Interest Period applicable thereto, such Borrower agrees to
indemnify each applicable Lender against, and to pay on demand directly to
such Lender the amount (which demand shall be accompanied by a statement
setting forth the calculations of such amount in reasonable detail which
statement shall be conclusive absent manifest error) equal to any reasonable
loss or out-of-pocket expense (excluding loss of margin) suffered by such
Lender as a result of such failure to borrow or convert or such termination,
repayment or prepayment, including any loss, cost or expense suffered by such
Lender in liquidating or employing deposits acquired to fund or maintain the
funding of its Fixed Rate Loans to such Borrower, or redeploying funds prepaid
or repaid, in amounts which correspond to such Fixed Rate Loans, and any
internal processing charge customarily charged by such Lender in connection
therewith.

	3.5.	 	CAPITAL ADEQUACY

If the amount of capital required to be maintained by any Lender or any Person
directly or indirectly owning or controlling such Lender (each a “Control
Person”), shall be affected by the occurrence of a Regulatory Change and such
Lender shall have determined that such Regulatory Change shall have had or will
thereafter have the effect of reducing (a) the rate of return on such Lender’s
or such Control Person’s capital, or (b) the asset value to such Lender or such
Control Person of the Loans or Commitments made or maintained by such Lender to
a level below that which such Lender or such Control Person could have achieved
or would thereafter be able to achieve but for such Regulatory Change (after
taking into account such Lender’s or such Control Person’s policies regarding
capital adequacy) by an amount deemed by such Lender to be material to such
Lender or Control Person, then Parent Borrower agrees to pay to such Lender or
such Control Person, as the case may be, within 10 days after demand by such
Lender, such additional amount or amounts as shall be sufficient to compensate
such Lender or such Control Person, as the case may be, for such reduction
(which demand shall be accompanied by a

35

 

 statement setting forth the
calculations of such additional amount or amounts in reasonable detail which
statement shall be conclusive absent manifest error). Notwithstanding anything
to the contrary herein, no amount shall be required to be paid pursuant to this
Section to the extent that such amount shall have been incurred by the
applicable Lender or applicable Control Person, as the case may be, or shall
otherwise relate to any reduction which shall have become effective, more than
270 days prior to the date on which such Lender shall have made demand therefor
pursuant to this Section.

	3.6.	 	REIMBURSEMENT FOR INCREASED COSTS

If any Lender shall determine that a Regulatory Change shall impose, modify or
make applicable any reserve, special deposit, compulsory loan, assessment,
increased cost or similar requirement against assets held by, or deposits of,
or advances or loans by, or other credit extended by, or any other acquisition
of funds by, any office of such Lender in respect of its Fixed Rate Loans which
is not otherwise included in the determination of a Eurodollar Rate or
Alternate Currency Rate, as the case may be, and the result of any of the
foregoing is to increase the cost to such Lender of making, renewing,
converting or maintaining its Fixed Rate Loans or its commitment to make such
Fixed Rate Loans, or to reduce any amount receivable under the Loan Documents
in respect of its Fixed Rate Loans, then, in any such case, Parent Borrower
agrees to pay such Lender, within 10 days after demand therefor, such
additional amounts as is sufficient to compensate
such Lender for such additional cost or reduction in such amount receivable
which such Lender deems to be material as determined by such Lender (which
demand shall be accompanied by a statement setting forth the calculations of
such additional amounts in reasonable detail which statement shall be
conclusive absent manifest error). Notwithstanding anything to the contrary
herein, no amount shall be required to be paid pursuant to this Section to the
extent that such amount shall have been incurred by the applicable Lender more
than 270 days prior to the date on which such Lender shall have made demand
therefor pursuant to this Section.

	3.7.	 	ILLEGALITY OF FUNDING

Notwithstanding any other provision hereof, if any Lender shall reasonably
determine that any law, regulation, treaty or directive, or any change therein
or in the interpretation or application thereof, shall make it unlawful for
such Lender to make or maintain any Fixed Rate Loan as contemplated by this
Agreement, such Lender shall promptly notify Parent Borrower and the Agent
thereof, and (a) the commitment or other obligation of such Lender to make such
Fixed Rate Loans or convert ABR Advances to Eurodollar Advances or Alternate
Currency Advances to new Alternate Currency Advances, as the case may be, shall
forthwith be suspended, (b) such Lender shall fund its portion of each
requested Eurodollar Advance as an ABR Advance, (c) such Lender’s Loans then
outstanding as such Eurodollar Advances, if any, shall be converted
automatically to an ABR Advance on the last day of the then current Euro
Interest Period applicable thereto or at such earlier time as may be required,
and (d) in the case of each Alternate Currency Advance, the applicable Borrower
shall take such action as such Lender may reasonably request with a view to
minimizing the obligations of such Borrower under Section 3.4. If the
commitment of any Lender with respect to Eurodollar Advances or Alternate
Currency Advances, as the case may be, is suspended pursuant to this Section
and such Lender shall have obtained actual knowledge that it is once again
legal for such Lender to make or maintain

36

 

 Eurodollar Advances or Alternate
Currency Advances, as the case may be, such Lender shall promptly notify the
Agent and Parent Borrower thereof and, upon receipt of such notice by each of
the Agent and Parent Borrower, such Lender’s commitment to make or maintain
Eurodollar Advances or Alternate Currency Advances, as the case may be, shall
be reinstated.

	3.8.	 	SUBSTITUTED INTEREST RATE

In the event that (x) the Agent or any Reference Lender shall have determined
(which determination shall be conclusive and binding upon Borrowers) that by
reason of circumstances affecting the interbank eurodollar market either
adequate or reasonable means do not exist for ascertaining the Eurodollar Rate
or Alternate Currency Rate, as the case may be, applicable pursuant to Section
3.1 or (y) the Required Lenders shall have notified the Agent that they have
determined (which determination shall be conclusive and binding on Borrowers)
that the applicable Eurodollar Rate or Alternate Currency Rate, as the case may
be, will not adequately and fairly reflect the cost to such Lenders of
maintaining or funding loans bearing interest based on such Eurodollar Rate or
Alternate Currency Rate, as the case may be, with respect to any portion of the
Loans that any Borrower has requested be made as Eurodollar Advances or
Alternate Currency Advances, as the case may be, or Eurodollar Advances or
Alternate Currency Advances, as the case may be, that will result from the
requested conversion of any portion of
the Advances into or of Eurodollar Advances or Alternate Currency Advances, as
the case may be (each an “Affected Advance”), the Agent shall promptly notify
Parent Borrower and the Lenders (by telephone or otherwise, to be promptly
confirmed in writing) of such determination, on or, to the extent practicable,
prior to the requested Borrowing Date or Conversion Date for such Affected
Advances. If the Agent shall give such notice, (a) in the case of Eurodollar
Advances, (i) such Affected Advances shall be made as ABR Advances, (ii) the
Advances (or any portion thereof) that were to have been converted to Affected
Advances shall be converted to ABR Advances, and (iii) any outstanding Affected
Advances shall be converted, on the last day of the then current Euro Interest
Period with respect thereto, to ABR Advances, and (b) in the case of Alternate
Currency Advances, the interest rate for such Affected Advances shall be
determined pursuant to clause (a)(x)(iii) and (b)(x)(iv) of the definition of
Alternate Currency Rate. Until any notice under clause (a) or (b), as the case
may be, of this Section has been withdrawn by the Agent (by notice to Parent
Borrower) upon either (1) the Agent having determined that such circumstances
affecting the interbank market no longer exist and that adequate and reasonable
means do exist for determining the Eurodollar Rate or Alternate Currency Rate,
as the case may be, pursuant to Section 3.1 or (2) the Agent having been
notified by such Required Lenders that circumstances no longer render the
Advances (or any portion thereof) Affected Advances, then (A) no further
Eurodollar Advances shall be required to be made by the Lenders, (B) no
Borrower shall have the right to convert all or any portion of the Loans to or
as Eurodollar Advances, and (C) the interest rate for Alternate Currency
Advances shall be determined pursuant to clause (a)(xi)(iii) and (b)(x)(iv) of
the definition of Alternate Currency Rate.

	3.9.	 	TAXES

         (a)  Payments to Be Free and Clear. All payments by each Borrower under the
Loan Documents shall be made free and clear of, and without any deduction or
withholding for, any

37

 

Indemnified Tax. If any Borrower or any other Person is
required by any law, rule, regulation, order, directive, treaty or guideline to
make any deduction or withholding (which deduction or withholding would
constitute an Indemnified Tax) from any amount required to be paid by any
Borrower to or on behalf of any Indemnified Tax Person under any Loan Document
(each a “Required Payment”), then:

		
	 	         (i) such Borrower shall notify the Agent and such Indemnified Tax
Person of any such requirement or any change in any such requirement as
soon as such Borrower becomes aware thereof;
	 
	 	         (ii) such Borrower shall pay such Indemnified Tax prior to the date
on which penalties attach thereto, such payment to be made (to the extent
that the liability to pay is imposed on such Borrower) for its own
account or (to the extent that the liability to pay is imposed on such
Indemnified Tax Person) on behalf and in the name of such Indemnified Tax
Person;
	 
	 	         (iii) such Borrower shall pay to such Indemnified Tax Person an
additional amount such that such Indemnified Tax Person shall receive on
the due date therefor an
amount equal to the Required Payment had no such deduction or
withholding been required; and
	 
	 	         (iv) such Borrower shall, within 30 days after paying such
Indemnified Tax, deliver to the Agent and such Indemnified Tax Person
satisfactory evidence of such payment to the relevant Governmental
Authority.

         (b)  Other Indemnified Taxes. If any Indemnified Tax Person or any
affiliate thereof is required by any law, rule, regulation, order, directive,
treaty or guideline to pay any Indemnified Tax (excluding an Indemnified Tax
which is subject to Section 3.9(a)) with respect to any sum paid or payable by
any Borrower to such Indemnified Tax Person under the Loan Documents, then,
within five days after such Indemnified Tax Person shall have notified such
Borrower thereof, such Borrower shall pay to such Indemnified Tax Person the
amount of such Indemnified Tax.

         (c)  U.S. Tax Certificates. Each Lender that is organized under the laws
of any jurisdiction other than the United States or any political subdivision
thereof shall deliver to the Agent for transmission to Parent Borrower, on or
prior to the Relevant Date, and at such other times, as may be necessary in the
determination of Parent Borrower, or the Agent (each in the reasonable exercise
of its discretion), such certificates, documents or other evidence, properly
completed and duly executed by such Lender (including Internal Revenue Service
forms W-8BEN and W-8ECI or other applicable and successor forms as may be
adopted by the relevant taxing authorities of the United States to document a
claim to which such form(s) relate) to establish that such Lender is not
subject to deduction or withholding of United States federal income tax or
otherwise (or under any comparable provisions of any successor statute) with
respect to any payments to such Lender of principal, interest, fees or other
amounts payable under the Loan Documents. No Borrower shall be required to pay
any additional amount to any such Lender under Section 3.9(a)(iii) if such
Lender shall have failed to satisfy the requirements

38

 

of the immediately
preceding sentence; provided that if such Lender shall have satisfied such
requirements on the Relevant Date, nothing in this Section 3.9(c) shall relieve
any Borrower of its obligation to pay any additional amounts pursuant to
Section 3.9(a)(iii) in the event that, as a result of any change in applicable
law (including any change in the interpretation thereof), such Lender is no
longer properly entitled to deliver certificates, documents or other evidence
at a subsequent date establishing the fact that such Lender is not subject to
withholding as described in the immediately preceding sentence.

         (d)  Other Tax Certificates. Each Indemnified Tax Person agrees to use
reasonable efforts to deliver to any Borrower promptly upon any reasonable
request therefor from time to time by such Borrower, such forms, documents and
information as may be required by applicable law, regulation or treaty from
time to time and to file all appropriate forms to obtain a certificate or other
appropriate documents from the appropriate Governmental Authorities to
establish that payments made in respect of any Alternate Currency Loan by such
Borrower can be made without (or at a reduced rate of) withholding of Taxes,
provided, however, that if such Indemnified Tax Person is or becomes unable by
virtue of any applicable law, regulation or treaty, to establish such exemption
or reduction, such Borrower shall nonetheless remain obligated under Section
3.9(a) to pay the
amounts described therein, and provided further that no Indemnified Tax
Person shall be required to take any action under this Section 3.9(d) which, in
the sole discretion of such Indemnified Tax Person, would cause such
Indemnified Tax Person or any affiliate thereof to suffer a material economic,
legal or regulatory disadvantage.

         (e)  Refunds. If any Lender or the Agent, on behalf of such Lender,
receives a refund which, in the good faith judgment of such Lender, constitutes
a refund of any Indemnified Tax paid by any Borrower from the applicable
Governmental Authority which shall have imposed such Indemnified Tax and which
such Lender or Agent can readily identify as such, such Lender or the Agent, on
behalf of such Lender, as the case may be, shall promptly pay to such Borrower
an amount equal to (i) the amount of such refund, minus (ii) the amount of all
out-of-pocket expenses, if any, incurred by such Lender or the Agent, on behalf
of such Lender, as the case may be, in obtaining such refund; provided,
however, that, notwithstanding anything to the contrary contained herein, such
Borrower shall promptly return such refund to such Lender or the Agent, for the
benefit of such Lender, as the case may be, if such Borrower shall have
received notice from such Lender or the Agent, on behalf of such Lender, to
the effect that such Lender or the Agent, on behalf of such Lender, as the case
may be, is required to repay such refund.

         (f)  Other Taxes. Each Borrower agrees to pay any current or future stamp
or documentary taxes or any other excise or property taxes, charges or similar
levies that arise from any payment made hereunder or from the execution,
delivery or registration of, or any amendment, supplement or modification of,
or any waiver or consent under or in respect of, the Loan Documents or
otherwise with respect to, the Loan Documents.

	3.10.	 	OPTION TO FUND

Each Lender has indicated that, if any Borrower requests a Eurodollar Advance
or an Alternate Currency Advance, such Lender may wish to purchase one or more
deposits in order to fund or

39

 

 maintain its funding of its Commitment Percentage
of such Eurodollar Advance or Alternate Currency Advance, as the case may be,
during the Euro Interest Period applicable thereto; it being understood that
the provisions of this Agreement relating to such funding are included only for
the purpose of determining the rate of interest to be paid in respect of such
Eurodollar Advance or Alternate Currency Advance, as the case may be, and any
amounts owing under Sections 3.4 and 3.6. Each Lender shall be entitled to fund
and maintain its funding of all or any part of each Eurodollar Advance and each
Alternate Currency Advance, as the case may be, in any manner it sees fit, but
all such determinations under Sections 3.4 and 3.6 shall be made as if each
Lender had actually funded and maintained its Commitment Percentage of each
such Eurodollar Advance or such Alternate Currency Advance, as the case may be,
during the applicable Euro Interest Period, through the purchase of deposits in
an amount equal to the amount of its Commitment Percentage of such Eurodollar
Advance or such Alternate Currency Advance having a maturity corresponding to
such Euro Interest Period. Any Lender may fund its Commitment Percentage of
each Eurodollar Advance or Alternate Currency Advance, as the case may be, from
or for the account of any branch, office, affiliate, or correspondent bank of
such Lender as such Lender may choose from time to time.

	3.11.	 	REPLACEMENT OF LENDERS

Notwithstanding the foregoing, if (a) any Lender shall request compensation
pursuant to Section 3.5 or 3.6, (b) any Lender shall give any notice to Parent
Borrower or the Agent pursuant to Section 3.7, or (c) any Borrower shall be
required to pay any additional amounts pursuant to Section 3.9 in respect of
any Lender, then, in each such case, so long as no Default or Event of Default
then exists, Parent Borrower may require that such Lender transfer all of its
right, title and interest under the Loan Documents to any lender identified by
Parent Borrower (a “Proposed Lender”) if such Proposed Lender agrees to assume
all of the obligations of such Lender for consideration equal to the
outstanding principal amount of such Lender’s Loans, together with interest
thereon to the date of such transfer and all other amounts payable under the
Loan Documents to such Lender on or prior to the date of such transfer
(including any fees accrued hereunder and any amounts which would be payable
under Section 3.4 as if all of such Lender’s Loans were being prepaid in full
on such date). Subject to the execution and delivery of an instrument of
assignment and assumption, and such other documents as such Lender may
reasonably require, such Proposed Lender shall be a “Lender” for all purposes
hereunder. Without prejudice to the survival of any other agreement of
Borrowers under the Loan Documents, the agreements of Borrowers contained in
Sections 3.4, 3.5, 3.6, 12.5 and 12.7 (without duplication of any payments made
to such Lender by any Borrower or the Proposed Lender) shall survive for the
benefit of any Lender replaced under this Section 3.11 with respect to the time
prior to such replacement.

	3.12.	 	CHANGES OF LENDING OFFICES

         (a)  Borrower’s Request. With respect to any Loan of any Lender, such
Lender agrees that upon the occurrence of any event giving rise to the
operation of Section 3.4, 3.5, 3.6, 3.7 or 3.9 with respect to such Loan, it
will, if requested by the applicable Borrower, or if such Borrower is a
Subsidiary Borrower, the Parent Borrower, on behalf of such Subsidiary
Borrower, so long as no Default or Event of Default then exists, use reasonable
efforts (subject to overall

40

 

policy considerations of such Lender) to designate
another office of such Lender for such Loan affected by such event, provided
that such designation is made on such terms that such Lender suffers no
economic, legal or regulatory disadvantage, with the object of avoiding the
consequence of the event giving rise to the operation of such Section. Nothing
in this Section shall affect or postpone any of the obligations of any Borrower
or the right of any Lender provided in Sections 3.4, 3.5, 3.6, 3.7 and 3.9.

         (b)  Lender’s Right. Each Lender shall have the right at any time and from
time to time to transfer any of its Loans to a different office thereof,
provided that such Lender shall promptly notify the Agent and Parent Borrower
of any such change of office, provided, however, that such Lender shall not be
entitled to receive any greater amount under Sections 3.4, 3.5, 3.6, 3.7 or 3.9
as a result of such transfer than it would be entitled to immediately prior
thereto unless such claim would have arisen even if such transfer had not
occurred.

	4.	 	REPRESENTATIONS AND WARRANTIES

         In order to induce the Agent and the Lenders to enter into this Agreement,
and the Lenders to make the Loans, Parent Borrower makes the following
representations and warranties to the Agent and each Lender:

	4.1.	 	SUBSIDIARIES; JURISDICTIONS

As of the most recent date on which financial statements were delivered to the
Agent and each Lender pursuant to Sections 7.1(b) or 7.1(c): (a) Parent
Borrower has only the Subsidiaries set forth on, and the jurisdiction of
formation of each such Subsidiary is as set forth on, Schedule 4.1; (b)
Schedule 4.1 also accurately denotes each Material Subsidiary and Credit Party
and sets forth the percentage of shares of each class of Capital Stock thereof
which is owned by Parent Borrower and each other Subsidiary on an outstanding
and fully diluted basis; and (c) all of the outstanding shares of Capital Stock
of each Subsidiary have been validly issued, are fully paid and nonassessable,
and are owned by Parent Borrower or another Subsidiary free and clear of any
Lien, warrants, options and rights of others of any kind whatsoever (except as
otherwise disclosed in Schedule 4.1) other than Liens permitted by Section 8.6.

	4.2.	 	EXISTENCE AND POWER

Each Material Subsidiary and each Credit Party is a corporation or other legal
entity duly organized and validly existing in good standing under the laws of
the jurisdiction of its organization, has all requisite power and authority to
own its Property and to carry on its business as now conducted, and is in good
standing and authorized to do business in each jurisdiction in which the nature
of the business conducted therein or the Property owned by it therein makes
such qualification necessary, in each case except where such failure to qualify
could not reasonably be expected to have a Material Adverse Effect.

41

 

	4.3.	 	AUTHORITY AND EXECUTION

Each Credit Party has full legal power and authority to enter into, execute,
deliver and perform the terms of the Loan Documents to which it is a party, all
of which have been duly authorized by all proper and necessary corporate,
partnership or other applicable action and are in full compliance with its
Organizational Documents. Each Credit Party has duly executed and delivered
the Loan Documents to which it is a party.

	4.4.	 	BINDING AGREEMENT

The Loan Documents constitute the valid and legally binding obligations of each
Credit Party, in each case to the extent it is a party thereto, enforceable in
accordance with their respective terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization or other similar
laws affecting the enforcement of creditors’ rights generally.

	4.5.	 	LITIGATION

Except as set forth on Schedule 4.5, there are no actions, suits or proceedings
at law or in equity or by or before any Governmental Authority (whether
purportedly on behalf of Parent Borrower or any of its Subsidiaries) pending
or, to the knowledge of Parent Borrower, threatened against Parent Borrower or
any of its Subsidiaries or maintained by Parent Borrower or any of its
Subsidiaries or which may affect any of their respective Properties or rights,
which individually or in the aggregate could reasonably be expected to have a
Material Adverse Effect.

	4.6.	 	REQUIRED CONSENTS

No consent, authorization or approval of, filing with, notice to, or exemption
by, stockholders or holders of any other equity interest, any Governmental
Authority or any other Person, is required to be obtained or made by Parent
Borrower or any of its Subsidiaries in order to authorize, or is required to be
obtained or made by Parent Borrower or any of its Subsidiaries in connection
with, the execution, delivery or performance of, the Loan Documents, or is
required to be obtained or made by Parent Borrower or any of its Subsidiaries
as a condition to the validity or enforceability of the Loan Documents. Each
Borrower, prior to each borrowing by it hereunder in any jurisdiction, has
obtained all necessary approvals and consents of, and has filed or caused to be
filed all reports, applications, documents, instruments and information
required to be filed pursuant to all applicable laws, rules, regulations and
requests of, all Governmental Authorities in connection with such borrowing in
such jurisdiction.

	4.7.	 	ABSENCE OF DEFAULTS; NO CONFLICTING AGREEMENTS

None of Parent Borrower or any of its Subsidiaries is in default (a) under any
mortgage, indenture, contract, instrument or agreement to which it is a party
or by which it or any of its Property is bound, or (b) with respect to any
judgment, order, writ, injunction, decree or decision of any Governmental
Authority; the effect of which default, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect. The execution,
delivery or carrying out of the terms of the Loan Documents will not constitute
a default under, or result in

42

 

 the creation or imposition of, or obligation to
create, any Lien upon any Property of Parent Borrower or any of its
Subsidiaries or result in a breach of (or require the mandatory repayment of or
other acceleration of payment under or pursuant to the terms of) any such
mortgage, indenture, note, contract, instrument, agreement, judgment, order,
writ, injunction, decree or decision of any Governmental Authority.

	4.8.	 	COMPLIANCE WITH APPLICABLE LAWS

Parent Borrower and each of its Subsidiaries is complying in all material
respects with all statutes, regulations, rules and orders of all Governmental
Authorities which are applicable to it, a violation of which, individually or
in the aggregate, could reasonably be expected to have a Material Adverse
Effect.

	4.9.	 	TAXES

Parent Borrower and each of its Subsidiaries has filed or caused to be filed
all material tax returns required to be filed and has paid, or has made
adequate provision for the payment of, all taxes shown to be due and payable on
said returns or in any assessments made against it (other than those being
contested as required under Section 7.4) which would be material to Parent
Borrower and its Subsidiaries, taken as a whole, and no tax Liens have been
filed with respect thereto. The charges, accruals and reserves on the books of
Parent Borrower and each of its Subsidiaries with respect to all taxes are, to
the best knowledge of Parent Borrower, adequate for the payment of such taxes,
and Parent Borrower knows of no unpaid assessment which is due and payable
against Parent Borrower or any of its Subsidiaries or any claims being asserted
which, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect, except such thereof as are being contested as required
under Section 7.4, and for which adequate reserves have been set aside in
accordance with GAAP.

	4.10.	 	GOVERNMENTAL REGULATIONS

Neither Parent Borrower, any of its Subsidiaries nor any Person controlled by,
controlling, or under common control with, Parent Borrower or any of its
Subsidiaries, is subject to regulation under the Public Utility Holding Company
Act of 1935, as amended, the Federal Power Act, as amended, the ICC Termination
Act of 1995, as amended, or the Investment Company Act of 1940, as amended, or
is subject to any statute or regulation which prohibits or restricts the
incurrence of Indebtedness, including statutes or regulations relative to
common or contract carriers or to the sale of electricity, gas, steam, water,
telephone, telegraph or other public utility services.

	4.11.	 	FEDERAL REGULATIONS; USE OF LOAN PROCEEDS

Neither Parent Borrower nor any of its Subsidiaries is engaged principally, or
as one of its important activities, in the business of extending credit for the
purpose of purchasing or carrying any Margin Stock. The execution, delivery
and performance of the Loan Documents, including, without limitation, the
funding and use of proceeds of the Loans, will not violate the Trading with the
Enemy Act, as amended, or any regulation or executive order promulgated
thereunder or relating thereto.

43

 

	4.12.	 	PLANS

Except as could not reasonably be expected to have a Material Adverse Effect,
(i) each Employee Benefit Plan is in compliance with ERISA and the Code, where
applicable, and (ii) no liability to the PBGC has been, or is expected by
Parent Borrower, any of its Subsidiaries or any ERISA Affiliate to be, incurred
by Parent Borrower, any such Subsidiary or any ERISA Affiliate. Liability, as
referred to in this Section includes any joint and several liability.

	4.13.	 	FINANCIAL STATEMENTS

Parent Borrower has previously delivered to the Agent and the Lenders true,
correct and complete copies of its (a) Annual Report on Form 10-K for the
fiscal year of Parent Borrower ending December 31, 2001, containing the audited
Consolidated balance sheets of Parent Borrower and its Subsidiaries as of
December 31, 2001, and the related Consolidated statements of operations,
stockholders’ equity and cash flows for the such fiscal year, and (b) quarterly
report on Form 10-Q for the fiscal quarter of Parent Borrower ended March 31,
2002, containing the unaudited Consolidated balance sheet of Parent Borrower
and its Subsidiaries for such fiscal quarter, together with related
Consolidated statements of operations, stockholders’ equity and cash flows for
such fiscal quarter (with the applicable related notes and schedules, and
collectively with the financial statements referred to in item (a) above (the
“Financial Statements”). The Financial Statements fairly present in all
material respects the Consolidated financial condition and results of the
operations of Parent Borrower and its Subsidiaries as of the dates and for the
periods indicated therein and have been prepared in conformity with GAAP.
Except as reflected in the Financial Statements or in the footnotes thereto,
neither Parent Borrower nor any of its Subsidiaries has any material obligation
or liability of any kind (whether fixed, accrued, contingent, unmatured or
otherwise) which, in accordance with GAAP, should have been shown in the
Financial Statements and was not. Since December 31, 2001, there has been no
Material Adverse Change.

	4.14.	 	PROPERTY

Parent Borrower and each of its Subsidiaries has good and marketable title to,
or a valid leasehold interest in, all of its real Property, and is the owner
of, or has a valid lease of, all personal property, in each case except where
the failure so to have or so to be could not reasonably be expected to have a
Material Adverse Effect, subject to no Liens, except Permitted Liens.

	4.15.	 	AUTHORIZATIONS

Except, in each case with respect to the matters referred to in this sentence,
as could not reasonably be expected to have a Material Adverse Effect, Parent
Borrower and each of its Subsidiaries possesses or has the right to use all
franchises, licenses and other rights as are material and necessary for the
conduct of its business, and with respect to which it is in compliance, with no
known conflict with the valid rights of others. No event has occurred which
permits or, to the best knowledge of Parent Borrower, after notice or the lapse
of time or both, or

44

 

any other condition, could reasonably be expected to permit, the revocation or
termination of any such franchise, license or other right which revocation or
termination could reasonably be expected, individually or in the aggregate, to
have a Material Adverse Effect.

	4.16.	 	ENVIRONMENTAL MATTERS

Neither Parent Borrower nor any of its Subsidiaries (a) has received written
notice or otherwise learned of any claim, demand, action, event, condition,
report or investigation indicating or concerning any potential or actual
liability which individually or in the aggregate could reasonably be expected
to have a Material Adverse Effect, arising in connection with (i) any
non-compliance with or violation of the requirements of any applicable federal,
state, local or foreign environmental health or safety statute or regulation,
or (ii) the release or threatened release of any toxic or hazardous waste,
substance or constituent, or other substance into the environment, (b) to the
best knowledge of Parent Borrower, has any threatened or actual liability in
connection with the release or threatened release of any toxic or hazardous
waste, substance or constituent, or other substance into the environment which
individually or in the aggregate could reasonably be expected to have a
Material Adverse Effect, (c) has received notice of any federal, state, local
or foreign investigation evaluating whether any remedial action is needed to
respond to a release or threatened release of any toxic or hazardous waste,
substance or constituent or other substance into the environment for which
Parent Borrower or any of its Subsidiaries is or would be liable, which
liability could reasonably be expected to have a Material Adverse Effect, or
(d) has received notice that Parent Borrower or any of its Subsidiaries is or
may be liable to any Person under the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section 9601 et
seq., or any analogous state law, which liability could reasonably be expected
to have a Material Adverse Effect. Parent Borrower and each of its Subsidiaries
is in compliance with the financial responsibility requirements of federal,
state, local and foreign environmental laws to the extent applicable, including
those contained in 40 C.F.R., parts 264 and 265, subpart H, and any analogous
state law, except in those cases in which the failure so to comply would not
reasonably be expected to have a Material Adverse Effect.

	4.17.	 	FULL DISCLOSURE

As of the Effective Date, no fact is known to Parent Borrower which has had, or
is reasonably likely in the future to have a Material Adverse Effect, which has
not been set forth in the Financial Statements. No information contained in
this Agreement, any of the other Loan Documents, any projections, financial
statements or other reports from time to time delivered hereunder or in any
written statement furnished by or on behalf of any Credit Party to Agent or any
of the Lenders pursuant to the terms of this Agreement contains or will contain
any untrue statement of material fact or omits or will omit to state a material
fact necessary to make the statements contained herein or therein, taken as a
whole, not misleading in light of the circumstances under which they were made.
Parent Borrower has complied with all of its material reporting obligations
under the Exchange Act, and all of Parent Borrower’s reports filed with the SEC
under Exchange Act comply with all applicable provisions thereof and all
applicable rules and regulations promulgated thereunder.

45

 

	4.18.	 	EXISTING INDEBTEDNESS; LIENS

         (a)  Existing Indebtedness. As of the Effective Date, Schedule 4.18 sets
forth a complete and correct list of all outstanding Indebtedness of Parent
Borrower and its Subsidiaries. As of the Effective Date, neither Parent
Borrower nor any of its Subsidiaries is in default, and as of such date no
waiver of default is in effect, in the payment of any principal or interest on
any Indebtedness of Parent Borrower or such Subsidiary and no event or
condition exists with respect to any Indebtedness of Parent Borrower or any
Subsidiary that would permit (or that with notice or the lapse of time, or
both, would permit and without giving effect to any waiver) one or more Persons
to cause such Indebtedness to become due and payable before its stated maturity
or before its regularly scheduled dates of payment.

         (b)  Liens. Except as disclosed in Schedule 4.18, as of the Effective
Date, neither Parent Borrower nor any Subsidiary has agreed or consented to
cause or permit in the future (upon the happening of a contingency or
otherwise) any of its Property, whether now owned or hereafter acquired, to be
subject to a Lien not permitted by Section 8.6.

	4.19.	 	LOANS RANK PARI PASSU

The Indebtedness of each Borrower under the Loan Documents ranks at least pari
passu in right of payment with all other unsecured Senior Indebtedness (actual
or contingent) of such Borrower.

	4.20.	 	GUARANTOR SUBSIDIARIES

The Domestic Subsidiaries that are not Guarantor Subsidiaries, do not
individually or in the aggregate (considered as a single Subsidiary),
constitute a Significant Subsidiary.

	4.21.	 	BGS

As of the Effective Date, as of the most recent date on which financial
statements were delivered pursuant to Sections 7.1(b) or 7.1(c), and as of the
other dates and during the time periods that Schedule 4.21 is required to be
revised in accordance with Section 7.2(c), Schedule 4.21 completely and
accurately describes the assets and operations constituting the business
segment known as “Bowne Global Solutions”.

	5.	 	CONDITIONS TO FIRST LOANS

In addition to the conditions precedent set forth in Section 6, the obligation
of each Lender to make Loans on the first Borrowing Date shall be subject to
the fulfillment of the following conditions precedent:

46

 

	5.1.	 	EVIDENCE OF ACTION

The Agent shall have received a certificate, dated the first Borrowing Date, of
the Secretary of Parent Borrower and the Secretary or other analogous
counterpart of each other Credit Party (a) attaching a true and complete copy
of the resolutions of its Managing Person and of all documents evidencing all
necessary corporate, limited liability company, partnership or similar action
(in form and substance satisfactory to the Agent) taken by it to authorize the
Loan Documents to which it is a party and the transactions contemplated
thereby, (b) attaching a true and complete copy of its Organizational
Documents, (c) setting forth the incumbency of its officer or officers or other
authorized Persons who may sign the Loan Documents, including therein a
signature specimen of such officer or officers or other authorized Persons and
(d) attaching a certificate of good standing of the Secretary of State of the
jurisdiction of its formation and of each other jurisdiction in which it is
qualified to do business, except, in the case of such other jurisdiction, when
the failure to be in good standing in such jurisdiction would not have a
Material Adverse Effect.

	5.2.	 	ABSENCE OF LITIGATION

There shall be no injunction, writ, preliminary restraining order or other
order of any nature issued by any Governmental Authority in any respect
affecting the transactions provided for in the Loan Documents and no action or
proceeding by or before any Governmental Authority has been commenced and is
pending or, to the knowledge of Parent Borrower, threatened, (a) seeking to
prevent or delay the transactions contemplated by the Loan Documents or
challenging any other terms and provisions hereof or thereof or seeking any
damages in connection therewith, or (b) in the good faith judgment of the
Agent and the Lenders, that could reasonably be expected to have a Material
Adverse Effect. The Agent shall have received a certificate, in all respects
satisfactory to the Agent, of an executive officer of Parent Borrower to the
foregoing effects.

	5.3.	 	APPROVALS AND CONSENTS

All approvals and consents of all Persons required to be obtained in connection
with the consummation of the transactions contemplated by the Loan Documents
shall have been obtained (without the imposition of any conditions which are
not acceptable to the Agent and the Lenders) and shall be in full force and
effect, and all required notices shall have been given and all required waiting
periods shall have expired, and no law or regulation shall be applicable, in
the good faith judgment of the Agent and the Lenders, that restrains, prevents
or imposes materially adverse conditions with respect to the Loans or the
Agent’s or Lenders’ rights and remedies under the Loan Documents. The Agent
shall have received a certificate, in all respects satisfactory to the Agent,
of an executive officer of Parent Borrower to the foregoing effect.

	5.4.	 	OPINION OF COUNSEL TO CREDIT PARTIES

The Agent shall have received an opinion of (a) Simpson Thacher & Bartlett,
counsel to the Credit Parties, dated the first Borrowing Date, substantially in
the form of Exhibit L-1; and (b)

47

 

Philip E. Kucera, Esq., General Counsel of Parent Borrower, substantially in
the form of Exhibit L-2.

	5.5.	 	OPINION OF SPECIAL COUNSEL

The Agent shall have received an opinion of Special Counsel, dated the first
Borrowing Date, substantially in the form of Exhibit M.

	5.6.	 	FEES OF AGENT AND LENDERS

All fees payable to the Agent and to each Lender on or prior to the first
Borrowing Date in connection with this Agreement as have been agreed to by
Parent Borrower in writing shall have been paid.

	5.7.	 	FEES AND EXPENSES OF SPECIAL COUNSEL

The reasonable fees and expenses of Special Counsel in connection with the
preparation, negotiation and closing of the Loan Documents, to the extent
invoiced in reasonable detail, shall have been paid.

	5.8.	 	COUNTERPARTS TO AGREEMENT

The Agent shall have received counterparts to this Agreement duly executed and
delivered by Parent Borrower and each of the Subsidiary Borrowers and Lenders.

	5.9.	 	NOTES

The Agent shall have received the Notes, dated the Effective Date, and duly
executed and delivered by each Borrower.

	5.10.	 	EXISTING LOAN AGREEMENT

The Agent shall have received, in all respects satisfactory to it, a letter
from the Administrative Agent under the Existing Loan Agreement to the effect
that such agreement has been terminated and all amounts outstanding thereunder
have been paid.

	5.11.	 	COMPLIANCE CERTIFICATE

The Agent shall have received, in all respects satisfactory to it, a Compliance
Certificate.

	5.12.	 	GUARANTIES

The Agent shall have received a Guaranty, dated the Effective Date, duly
executed and delivered by each Subsidiary such that, immediately thereafter the
representation set forth in Section 4.20 will be true and correct.

48

 

	5.13.	 	MATERIAL ADVERSE CHANGE IN FINANCIAL CONDITION

In the good faith judgment of the Agent and the Lenders, there shall have not
have occurred or become known to the Agent or any of the Lenders any event,
condition, situation or status (including, without limitation, any change in
the corporate or other organizational structure and capitalization of Parent
Borrower or any of its Subsidiaries) since December 31, 2001 that has had, or
could reasonably be expected to result in, (a) a Material Adverse Effect; or
(b) a material adverse effect on the business or financial prospects of Parent
Borrower and its Subsidiaries, taken as a whole.

	5.14.	 	PROCEEDINGS AND DOCUMENTS

All corporate and other proceedings in connection with the transactions
contemplated by this Agreement and all documents and instruments incident to
such transactions shall be reasonably satisfactory to Agent and its Special
Counsel, and Agent and its Special Counsel shall have received all such
counterpart originals or certified or other copies of such documents as Agent
or such counsel may reasonably request.

	5.15.	 	ADDITIONAL SUBSIDIARY INFORMATION

A certificate of a Financial Officer of Parent Borrower setting forth the
information required under Section 7.1(h) for the fiscal year ended and as of
December 31, 2001.

	5.16.	 	NOTE PURCHASE AGREEMENT

Evidence satisfactory to the Agent that the Note Purchase Agreement has been
amended to permit the provision of the Guaranty by the Subsidiary Guarantors.

	6.	 	CONDITIONS OF LENDING — ALL LOANS

The obligation of each Lender to make any Loan on a Borrowing Date, and on each
date that a Swingline Loan is requested to be funded, is subject to the
satisfaction of the following conditions precedent as of the date of such Loan.

	6.1.	 	COMPLIANCE

On each Borrowing Date or Swingline Loan proposed funding date, as the case may
be, and after giving effect to the Loans to be made thereon (a) there shall
exist no Default or Event of Default, (b) the representations and warranties
made by each Credit Party, or by an officer (or other authorized Person) on its
behalf, contained in the Loan Documents, or in any certificate, report,
opinion or other document delivered pursuant or incident thereto, shall be true
and correct in all material respects with the same effect as though such
representations and warranties had been made on such date except to the extent
such representations and warranties specifically relate to an earlier date, in
which case such representations and warranties shall have been true and correct
in all material respects on and as of such earlier date, and (c) if any Loan or
Loans being

49

 

so extended are being extended to a Subsidiary Borrower, then
Parent Borrower shall deliver to the Agent, simultaneously with the delivery to
the Agent of a Borrower Request with respect to such Loan or Loans, a
certificate (in a form reasonably acceptable to Agent) of a Financial Officer
of Parent Borrower demonstrating (to the reasonable satisfaction of Agent)
compliance with Section 10.4 of the Note Purchase Agreement, or any successor
provision relating to “Priority Indebtedness” (as defined in the Note Purchase
Agreement) or any concept similar thereto after giving pro forma effect to the
funding of such Loan or Loans, and agreeing that the representation included in
such certificate will remain true on the date such Loan or Loans are funded.
Each borrowing requested by the Parent Borrower (including, without limitation,
each borrowing requested by the Parent Borrower on behalf of a Subsidiary
Borrower) shall constitute a certification by Parent Borrower as of such
Borrowing Date or Swingline Loan proposed funding date, as the case may be,
that each of the foregoing matters is true and correct in all respects.

	6.2.	 	BORROWING REQUEST

With respect to the Revolving Credit Loans to be made on each Borrowing Date,
the Agent shall have received a Borrowing Request duly executed by the
applicable Borrower or, if such Borrower is a Subsidiary Borrower, the Parent
Borrower, on behalf of such Subsidiary Borrower.

	6.3.	 	EXCHANGE LIMITATION

There exists no reason whatsoever, including, without limitation, by reason of
the application of any so-called “currency exchange laws or regulations” which
could reasonably be expected to interfere with any Borrower satisfying any of
its obligations hereunder in full at such time as such obligations become due
and payable pursuant to the terms hereof.

	7.	 	AFFIRMATIVE COVENANTS

Parent Borrower agrees that, so long as this Agreement is in effect, any Loan
remains outstanding and unpaid, or any other amount is owing under any Loan
Document to any Lender or Agent, Parent Borrower shall:

	7.1.	 	FINANCIAL STATEMENTS AND INFORMATION

Maintain a standard system of accounting in accordance with GAAP, and furnish
or cause to be furnished to the Agent and each Lender:

         (a)  Compliance Certificate. Simultaneously with the delivery of each set
of financial statements pursuant to Section 7.1(b)
and 7.1(c), a Compliance Certificate, as of the end of the fiscal period
for which such financial statements are being provided, certified by a
Financial Officer of Parent Borrower.

         (b)  Quarterly Statements. As soon as available, but in any event within
50 days after the end of each of the first three fiscal quarters in each fiscal
year of Parent Borrower, copies of:

50

 

	 	(i)	 	a Consolidated balance sheet of Parent Borrower
and its Subsidiaries as at the end of such quarter; and
	 
	 	(ii)	 	Consolidated statements of income, changes in
stockholders’ equity and cash flows of Parent Borrower and its
Subsidiaries for such quarter and (in the case of the second
and third quarters) for the portion of the fiscal year ending
with such quarter, setting forth in each case in comparative
form the figures for the corresponding periods in the previous
fiscal year, all in reasonable detail, prepared in accordance
with GAAP applicable to quarterly financial statements
generally together with a certificate of a Financial Officer
of Parent Borrower stating that the financial statements
described in clause (i) above and this clause (ii), fairly
present, in all material respects, the Consolidated financial
position of the companies being reported on and their results
of operations and cash flows, subject to changes resulting
from year-end adjustments.

provided that, so long as Parent Borrower has not made the election set forth
in Section 8.9(c) in connection with a BGS Disposition, delivery within the
time period specified above of copies of Parent Borrower’s Quarterly Report on
Form 10-Q for such fiscal quarter prepared in compliance with the Exchange Act
requirements therefor and filed with the SEC, together with the certificate
from the Financial Officer described in clause (ii) above, shall be deemed to
satisfy the financial statement delivery requirement set forth in clause (i)
and (ii) above.

         (c)  Annual Statements. As soon as available, but in any event within 105
days after the end of each fiscal year of Parent Borrower, copies of:

	 	(i)	 	a Consolidated balance sheet of Parent Borrower
and its Subsidiaries, as at the end of such year, and
	 
	 	(ii)	 	Consolidated statements of income, changes in
stockholders’ equity and cash flows of Parent Borrower and its
Subsidiaries, for such year, setting forth in each case in
comparative form the figures for the previous fiscal year, all
in reasonable detail, prepared in accordance with GAAP,
together with: (A) an unqualified opinion thereon of
Accountants, which opinion shall state that such financial
statements present fairly, in all material respects, the
financial position of the companies being reported upon and
their results of operations and cash flows and have been
prepared in conformity with GAAP, and that the examination of
such accountants in connection with such financial statements
has been made in accordance
with generally accepted auditing standards, and that such
audit provides a reasonable basis for such opinion in the
circumstances; and (B) a certificate of such Accountants
stating that they have reviewed this Agreement and stating
further that, in making their audit, they had not become
aware of any condition or event that then constitutes a
Default or an Event of Default with respect to Sections 8.1,
8.2, 8.3 and 8.4, and, if they are aware that any such
condition or event then exists, specifying the 

51

 

	 	 	 	nature and
period of the existence thereof (it being understood that
such Accountants shall not be liable directly or indirectly,
for any failure to obtain knowledge of any Default or Event
of Default unless such Accountants should have obtained
knowledge thereof in making an audit in accordance with
generally accepted auditing standards or did not make such an
audit).

provided that, so long as Parent Borrower has not made the election set forth
in Section 8.9(c) in connection with a BGS Disposition, delivery within the
time period specified above of Parent Borrower’s Annual Report on Form 10-K for
such fiscal year prepared in accordance with the requirements of the Exchange
Act therefor and filed with the SEC, together with the certificate from such
Accountants described in clause (ii)(B) above shall be deemed to satisfy the
requirements of this Section 7.1(c).

         (d)  SEC and Other Reports. Simultaneously upon their becoming available,
copies of (i) each financial statement, notice, proxy statement, regular,
periodic or other report, registration statement (and each prospectus and all
amendments thereto) other than registration statements on Form S-8, filed by
Parent Borrower, or any Subsidiary with the SEC or other analogous foreign
Governmental Authority, and (ii) all press releases and other statements,
reports or notices published, transmitted to holders of publicly traded
securities issued by a Credit Party or otherwise made generally available by
Parent Borrower or any Subsidiary to the public.

         (e)  Projections; Annual Business Plans. As soon as available, but in any
event within 105 days after the end of each fiscal year of Parent Borrower,
copies of the projected Consolidated balance sheets and Consolidated statements
of income, stockholders’ equity and cash flows, in each case of Parent Borrower
and its Subsidiaries, for the next fiscal year of Parent Borrower, together
with any business plan adopted by Parent Borrower or any Material Subsidiary
(all prepared on the same basis in similar detail as that on which operating
results are reported) and (in the case of cash flow projections, representing
management’s good faith estimates of future financial performance based on
historical performance) and which will include a statement of all of the
material assumptions on which such projections and plan are based.

         (f)  Management Letters. Copies within five Business Days of receipt
thereof by Parent Borrower and any Subsidiary, of all management letters,
exception reports or similar letters or reports received by Parent Borrower or
any of its Subsidiaries from its Accountants.

         (g)  Notice of Shareholder and Analyst Conference Calls. Reasonable
advance notice of all meetings (including, without limitation, Internet
accessible meetings) and conference calls to which members of the public or
shareholders of Parent Borrower or securities analysts are invited.

         (h)  Additional Subsidiary Information. As soon as available, but in any
event within 105 days after the end of each fiscal year of Parent Borrower, a
certificate of a Financial Officer of Parent Borrower setting forth (i) a list
of the Material Subsidiaries within each reporting segment (as defined in GAAP)
of Parent Borrower as of the end of such fiscal year; and (ii) a

52

 

 schedule of
Consolidated income and Consolidated assets for and as of the end of such
fiscal year attributable to each Domestic Subsidiary in sufficient detail to
demonstrate compliance with Section 4.20.

	7.2.	 	CERTIFICATES; OTHER INFORMATION

         (a)  Notice of Certain Events.

Furnish to the Agent, promptly and in any event within five days of a
Responsible Officer becoming aware of the following, written notice of the
following:

		
	 	         (i) if: (A) any Indebtedness of Parent Borrower or any of its
Subsidiaries in an aggregate amount in excess of $5,000,000 is declared or
shall become due and payable prior to its stated maturity, or any such
Indebtedness or Contingent Obligation is called and not paid when due, (B)
any event shall have occurred which, with or without the passage of time,
the giving of notice, or both, would permit the holders of any notes
(other than any Notes), certificate, security or other evidence of
Indebtedness, or any obligees with respect to any other Indebtedness of
Parent Borrower or any of its Subsidiaries or any beneficiaries of
Contingent Obligations, to accelerate the maturity of such Indebtedness or
cause any such amount of Contingent Obligations to become payable in an
aggregate amount in excess of $5,000,000 or require any such amount of
Indebtedness to be prepaid or repurchased prior to its stated maturity, or
cause any such amount of Contingent Obligations to become payable
regardless of whether any such default may have been waived or (C) there
shall occur and be continuing a Default;

		
	 	         (ii) Prompt written notice of: (A) any citation, summons, subpoena,
order to show cause or other document naming Parent Borrower or any of
its Subsidiaries a party to any proceeding before any Governmental
Authority which could reasonably be expected to have a Material Adverse
Effect or which calls into question the validity or enforceability of any
of the Loan Documents, and include with such notice a copy of such
citation, summons, subpoena, order to show cause or other document; (B)
any lapse or other termination of any license, permit, franchise or other
authorization issued to Parent Borrower or any of its Subsidiaries by any
Person or Governmental Authority which could reasonably be expected to
have a Material Adverse Effect; and (C) any refusal by any Person or
Governmental Authority to renew or extend any such material license,
permit, franchise or other authorization, which refusal could
reasonably be expected to have a Material Adverse Effect;

		
	 	         (iii) Parent Borrower, any of its Subsidiaries or any ERISA
Affiliate knows, or has reason to know, of any of the following events
which could reasonably be expected to have a Material Adverse Effect: (A)
any Termination Event with respect to a Pension Plan has occurred or will
occur, (B) any condition exists with respect to a Pension Plan which
presents a material risk of termination of the Pension Plan, imposition
of an excise tax, requirement to provide security to the Pension Plan or
other liability of Parent Borrower, any of its Subsidiaries or any ERISA
Affiliate, (C) Parent Borrower, any of its Subsidiaries or any ERISA
Affiliate has applied for a waiver of the minimum funding 

53

 

		
	 	standard under
Section 412 of the Code with respect to a Pension Plan, (D) Parent
Borrower, any of its Subsidiaries or any ERISA Affiliate has engaged in a
Prohibited Transaction with respect to an Employee Benefit Plan, or (E)
the assessment of a civil penalty under Section 502(c) of ERISA, together
with a certificate of a Financial Officer of Parent Borrower setting
forth the details of such event and the action which Parent Borrower,
such Subsidiary or such ERISA Affiliate proposes to take with respect
thereto, together with a copy of all notices and filings with respect
thereto;

		
	 	         (iv) Parent Borrower, any of its Subsidiaries or any ERISA Affiliate
shall receive a demand letter from the PBGC notifying Parent Borrower,
such Subsidiary or such ERISA Affiliate of any final decision finding
liability which could reasonably be expected to have a Material Adverse
Effect and the date by which such liability must be paid, together with a
copy of such letter and a certificate of a Financial Officer of Parent
Borrower setting forth the action which Parent Borrower, such Subsidiary
or such ERISA Affiliate proposes to take with respect thereto;

		
	 	         (v) Any default or event of default under any contractual obligation
(unrelated to Indebtedness for which notice is required pursuant to
Section 7.2(a)(i)) of Parent Borrower or any of its Subsidiaries, which
if not cured would have a Material Adverse Effect; and

		
	 	         (vi) The occurrence of any other event having a Material Adverse
Effect.

         (b)  Other Information. Furnish to the Agent or any Lender such other
information as the Agent or any such Lender shall reasonably request from time
to time.

         (c)  Schedules 4.1 and 4.21 Update. Together with each set of financial
statements delivered pursuant to Section 7.1(b) and 7.1(c), provide to the
Agent and each Lender: (a) a revised version of Schedule 4.1 so as to make
the representations set forth in clauses (a), (b) and (c) of Section 4.1
accurate; and (b) a revised version of Schedule 4.21 so as to make the
representation set forth in Section 4.21 accurate. Parent Borrower shall also
promptly provide to Agent and each Lender a revised version of Schedule 4.21
at least ten (10) days prior to a BGS Disposition and, if earlier, on the date
of any election pursuant to Section 8.9(c), which shall be revised as needed
so that the representation contained in Section 4.21 is accurate at all
times from the date such revised version of Schedule 4.21 is first
required to be so delivered through the date of such BGS Disposition.

	7.3.	 	LEGAL EXISTENCE

At all times preserve and keep in full force and effect its corporate
existence, and subject to Sections 8.7 and 8.9, Parent Borrower will at all
times preserve and keep in full force and effect the corporate or other
organizational existence of each of its Subsidiaries and all rights, licenses,
permits and authorizations and franchises of Parent Borrower and its
Subsidiaries unless, the termination of or failure to preserve and keep in full
force and effect such corporate or other organizational existence, right,
license, permit, authorization or franchise could not, individually or in the
aggregate, have a Material Adverse Effect.

54

 

	7.4.	 	TAXES

Will, and will cause each of its Subsidiaries to, file all Tax returns required
to be filed in any jurisdiction and to pay and discharge all Taxes shown to be
due and payable on such returns and all other Taxes imposed on them or any of
their Properties, income or franchises, to the extent such Taxes have become
due and payable and before they have become delinquent and all claims for which
sums have become due and payable that have or might become a Lien on Properties
of Parent Borrower or any Subsidiary; provided that neither Parent Borrower nor
any Subsidiary need pay any such Tax or claims or file any such Tax return if
(a) in the case of the failure to pay any such Tax, the amount, applicability
or validity of such Tax is contested by Parent Borrower or such Subsidiary on a
timely basis in good faith and in appropriate proceedings, and Parent Borrower
or such Subsidiary has established adequate reserves therefor in accordance
with GAAP on the books of Parent Borrower or such Subsidiary or (b) in the case
of the failure to pay Taxes or file a Tax return, the nonpayment of all such
Taxes in the aggregate or the failure to file such Tax return could not
reasonably be expected to have a Material Adverse Effect.

	7.5.	 	INSURANCE

Maintain, and cause each of its Subsidiaries to maintain, with financially
sound and reputable insurance companies, or pursuant to self-insurance (if
adequate reserves are maintained with respect thereto) insurance on all its
Property and businesses in at least such amounts and against at least such
risks as are usually insured against in the same general area by companies of
established reputations engaged in the same or a similar business; and furnish
to the Agent, upon written request, full information as to the insurance
carried.

	7.6.	 	CONDITION OF PROPERTY

At all times, maintain, protect and keep in good repair, working order and
condition (ordinary wear and tear excepted), and cause each of its Subsidiaries
so to do, all Property necessary to the operation of Parent Borrower’s or such
Subsidiary’s business, except where the failure so to do could not reasonably
be expected, individually or in the aggregate, to have a Material Adverse
Effect.

	7.7.	 	OBSERVANCE OF LEGAL REQUIREMENTS

Observe and comply in all respects, and cause each of its Subsidiaries so to
do, with all laws, ordinances, orders, judgments, rules, regulations,
certifications, franchises, permits, licenses, directions and requirements of
all Governmental Authorities, which now or at any time hereafter may be
applicable to it, a violation of which could reasonably be expected,
individually or in the aggregate with other violations, to have a Material
Adverse Effect.

	7.8.	 	INSPECTION OF PROPERTY; BOOKS AND RECORDS; DISCUSSIONS

At all reasonable times, upon reasonable prior notice (delivered as provided in
Section 12.2), permit representatives of the Agent and each Lender to visit the
offices of Parent Borrower and

55

 

each of its Subsidiaries, to examine the books
and records thereof and Accountants’ financial reports relating thereto, and to
make copies or extracts therefrom, to discuss the affairs of Parent Borrower
and each such Subsidiary with the respective officers thereof and with the
Accountants, and to examine and inspect the Property of Parent Borrower and
each such Subsidiary.

	7.9.	 	NATURE OF BUSINESS

Continue, and cause each of its Subsidiaries to continue to engage in the same
lines of business as conducted by Parent Borrower and its Subsidiaries on the
Effective Date and not engage or permit any of its Subsidiaries to engage, in
any other lines of business if, as a result, the general nature of the business
of Parent Borrower and its Subsidiaries, taken as a whole would change in any
material way from that conducted on the Effective Date.

	7.10.	 	NOTES TO RANK PARI PASSU.

Maintain, and cause each of the Subsidiary Borrowers to maintain, at all times,
the rank of such Borrower’s obligations under the Loan Documents as at least
pari passu in right of payment with all other present and future unsecured
Senior Indebtedness (actual or contingent) of such Borrower which is not
expressed to be subordinate or junior in rank to any other unsecured Senior
Indebtedness of such Borrower.

	7.11.	 	ADDITIONAL GUARANTORS

Immediately cause, if at any time the Domestic Subsidiaries of Parent Borrower
that are not Guarantor Subsidiaries shall in the aggregate (considered as a
single subsidiary) constitute a Significant Subsidiary, such number of Domestic
Subsidiaries, that are not then Guarantor Subsidiaries, to become Guarantor
Subsidiaries such that the Domestic Subsidiaries that are not Guarantor
Subsidiaries will not, in the aggregate, constitute a Significant Subsidiary.
Each Domestic Subsidiary becoming a Guarantor Subsidiary shall, execute and
deliver to the Agent a Guaranty, which shall be accompanied by such
resolutions, incumbency certificates, and legal opinions as are reasonably
required by the Agent.

	8.	 	NEGATIVE COVENANTS

Parent Borrower agrees that, so long as this Agreement is in effect, any Loan
remains outstanding and unpaid, or any other amount is owing under any Loan
Document to any Lender or Agent, Parent Borrower shall not, directly or
indirectly:

	8.1.	 	CONSOLIDATED SHAREHOLDERS’ EQUITY

Permit its Consolidated Shareholders’ Equity at any time to be an amount less
than the sum of (a) $250,000,000 plus (b) an aggregate amount equal to 25% of
Consolidated Net Income (but, in each case, only if a positive number) for each
completed fiscal quarter commencing with the fiscal quarter ending March 31,
2002.

56

 

	8.2.	 	FIXED CHARGE COVERAGE RATIO

Permit as at the end of each fiscal quarter the ratio of (a) Consolidated
EBITDAR for the four immediately preceding fiscal quarters (taken as a single
accounting period) to (b) Consolidated Fixed Charges for such fiscal period to
be less than 2.0 to 1.0; provided, however, that, notwithstanding the
foregoing, for the four fiscal quarter periods ended March 31, 2002 and ending
June 30, 2002 such ratio shall not be less than 1.85 to 1.00.

	8.3.	 	LEVERAGE RATIO

Permit the Leverage Ratio at any time to be more than 2.75 to 1.0; provided,
however, if Subordinated Indebtedness is then outstanding, permit the Senior
Leverage Ratio to be more than 2.5 to 1 or the Leverage Ratio to be more than
3.25 to 1.

	8.4.	 	RATIO OF INDEBTEDNESS TO CAPITALIZATION

Permit the ratio of Consolidated Indebtedness to Consolidated Total
Capitalization at any time to be greater than 0.55 to 1.00.

	8.5.	 	INDEBTEDNESS

Create, incur, assume or suffer to exist any liability for Indebtedness, or
permit any of its Subsidiaries so to do, except:

	 	(a)	 	Indebtedness due under the Loan Documents;
	 
	 	(b)	 	Indebtedness existing on the Effective Date as set forth on
Schedule 4.18 (other than the Indebtedness under the Existing Loan
Agreement which is to be repaid on the Effective Date), together
with any refinancings thereof which do not have the effect of
increasing the principal amount thereof or changing the amortization
thereof (other than to extend same) and which are otherwise on terms
and conditions no less favorable to Parent Borrower or its
Subsidiaries than the terms of the Indebtedness being refinanced;
	 
	 	(c)	 	Inter-Company Indebtedness that is incurred within the
limitations contained in Section 8.10(c);
	 
	 	(d)	 	Subordinated Indebtedness not to exceed $100,000,000
outstanding at any one time;
	 
	 	(e)	 	A guaranty or guaranties by Subsidiaries of the Indebtedness
issued pursuant to, and arising under, the Note Purchase Agreement
and which is described in and subject to the Intercreditor
Agreement; and
	 
	 	(f)	 	Other Indebtedness, provided that, (i) no Default or Event of
Default would exist as a result of the incurrence thereof, (ii) the
Lien, if any, securing such 

57

 

	 	 	 	Indebtedness is permitted by Section 8.6
and (iii) the aggregate amount of Indebtedness permitted under this
Section 8.5(f) shall not exceed $50,000,000 outstanding at any one
time.

	8.6.	 	LIENS

Create, incur, assume or suffer to exist any Lien upon any of its Property,
whether now owned or hereafter acquired, or permit any of its Subsidiaries so
to do, except:

	 	(a)	 	Liens for Taxes in the ordinary course of business which, in
the case of Liens which are material, are not delinquent or which
are being contested in accordance with Section 7.4, provided that
enforcement of such Liens is stayed pending such contest;
	 
	 	(b)	 	Liens in connection with workers’ compensation, unemployment
insurance or other social security obligations (but not ERISA);
	 
	 	(c)	 	deposits or pledges to secure bids, tenders, contracts (other
than contracts for the payment of Indebtedness of the type described
in clauses (a) through (e) of the definition thereof), leases,
statutory obligations, surety and appeal bonds and other obligations
of like nature arising in the ordinary course of business;
	 
	 	(d)	 	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 materially interfere with the ordinary conduct of the
business of Parent Borrower or such Subsidiary, as the case may be;
	 
	 	(e)	 	Liens arising by operation of law such as statutory liens in
favor of lessors and mechanics’, materialmen’s, carriers’ and
warehousemen’s liens incurred in the ordinary course of business
which are not delinquent or which are being contested in good faith
and by appropriate proceedings diligently conducted by Parent
Borrower or the applicable Subsidiary, as the case may be, and
provided that such reserve or other appropriate provision as shall
be reasonably required by the Accountants in accordance with GAAP
shall have been made therefor, and provided further that enforcement
of such Liens is stayed pending such contest;
	 
	 	(f)	 	Liens arising out of judgments or decrees which are being
contested in good faith and by appropriate proceedings diligently
conducted by Parent Borrower or the applicable Subsidiary, as the
case may be, and provided that such reserve or other
appropriate provision as shall be reasonably required by the
Accountants in accordance with GAAP shall have been made therefor,
and provided further that enforcement of such Liens is stayed
pending such contest;
	 
	 	(g)	 	Liens under Capital Leases and Liens on Property (including,
in the event such Property constitutes Capital Stock of a newly
acquired Subsidiary, Liens on the 

58

 

	 	 	 	Property of such Subsidiary)
either existing on such Property when acquired, or created
substantially contemporaneously with such acquisition to secure the
payment or financing of the purchase price thereof, provided that
(i) such Liens attach only to the Property so purchased or acquired,
(ii) on the later of the Effective Date or at the time of
acquisition or purchase of such Property, the aggregate amount
remaining unpaid on all Indebtedness secured by Liens on such
Property, whether or not assumed by Parent Borrower or a Subsidiary,
shall not exceed an amount equal to one hundred percent (100%) of
the lesser of the total purchase price or fair market value of such
Property, (iii) with respect to such Liens on Property acquired
after the Effective Date, at the time of creation, issuance,
assumption, guarantee or incurrence of the Indebtedness secured by
such Liens and after giving effect thereto and to the application of
the proceeds thereof, no Default or Event of Default would exist,
and (iv) the Indebtedness secured by such Liens is permitted under
Section 8.5;
	 
	 	(h)	 	Liens on Property of Parent Borrower and its Subsidiaries
existing on the Effective Date as set forth on Schedule 8.6, as
renewed from time to time, but not any increases in the amounts
secured thereby or extensions thereof to additional Property; and
	 
	 	(i)	 	other Liens on Property of Parent Borrower and its
Subsidiaries securing Indebtedness provided such Indebtedness is
permitted under Section 8.5, and provided that such Liens are not on
inventory or accounts receivable.

	8.7.	 	CONSOLIDATIONS AND MERGERS

Consolidate or merge into or with any Person, or enter into any binding
agreement to do so or permit any of its Subsidiaries to consolidate or merge
into or with any Person or enter into any binding agreement to do so which is
not contingent on obtaining the consent of the Required Lenders, except:

	 	(a)	 	Parent Borrower may merge or be consolidated with any Person
so long as Parent Borrower is the continuing or surviving
corporation; and
	 
	 	(b)	 	A Subsidiary of Borrower may merge or be consolidated with
any Person so long as the continuing or surviving Person is a
Subsidiary of Parent Borrower (except to the extent such merger or
consolidation is with Parent Borrower, in which event Parent
Borrower shall be the continuing or surviving corporation);

provided, that such merger or consolidation may not be effected unless: (i) if
such merger or consolidation would constitute an Acquisition, it would comply
with the requirements of Section 8.8; (ii) after giving effect thereto, no
Default or Event of Default would exist; (iii) if a Guarantor Subsidiary is
merging or consolidating with another Subsidiary, the surviving Person is a
Guarantor Subsidiary; (iv) if a Subsidiary Borrower is merging or consolidating
with another Subsidiary, (A) (x) such Subsidiary Borrower is the survivor
thereof or (y) immediately after giving effect thereto, the Subsidiary Borrower
Obligations of such Subsidiary Borrower shall have been paid in full, or (B)
(x) such other Subsidiary shall also be a Subsidiary Borrower, (y)

59

 

 such other
Subsidiary Borrower shall be organized under the laws of, and have its
principal office in, the same national jurisdiction as such Subsidiary Borrower
and (z) such other Subsidiary Borrower shall have assumed in a manner in all
respects reasonably satisfactory to the Agent all of the obligations and
liabilities of such Subsidiary Borrower under the Loan Documents, in each case
whether fixed, contingent, then existing or thereafter arising, created,
assumed, incurred or acquired; and (v) if a Domestic Subsidiary is merging or
consolidating with another Subsidiary that is not a Domestic Subsidiary, the
surviving Person is a Domestic Subsidiary, or if the surviving Person is not a
Domestic Subsidiary, then after giving effect to the proposed merger or
consolidation, that portion of the Consolidated Shareholders’ Equity and that
portion of the Consolidated Net Income attributable to the Domestic
Subsidiaries that were parties to such a merger or consolidation during the
same fiscal year shall not exceed more than 5% of either the Consolidated
Shareholders’ Equity or Consolidated Net Income, respectively, all as
determined in accordance with the most recent annual financial statements
delivered pursuant to Section 7.1(c) preceding the proposed merger or
consolidation. Additionally, Parent Borrower may permit one or more of its
Subsidiaries to merge or consolidate with another Person if, and to the extent
(x) such consolidation or merger would constitute a Disposition permitted under
Section 8.9, and (y) the conditions set forth in items (ii) through (v) of this
paragraph are satisfied.

	8.8.	 	ACQUISITIONS

Make any Acquisition, or enter into any binding agreement to make any
Acquisition which is not contingent on obtaining the consent of the Required
Lenders, or permit any of its Subsidiaries so to do, except:

	 	(a)	 	Acquisitions by Parent Borrower or any of its Subsidiaries of
Investments permitted by Section 8.10; and
	 
	 	(b)	 	An Acquisition of one or more Operating Entities (including,
without limitation, Acquisitions of Capital Stock of an Operating
Entity or as a result of a merger or consolidation with an
Operating Entity which is not Parent Borrower or a Subsidiary of
Parent Borrower), provided that (i) such Operating Entity is in the
same line or lines of business as Parent Borrower and its
Subsidiaries, (ii) Parent Borrower has provided evidence
satisfactory to the Agent that after giving effect to such
Acquisition no Default or Event of Default would exist, (iii) such
Acquisition does not involve a “hostile” transaction, and (iv) the
aggregate consideration paid by Parent Borrower and its Subsidiaries
for such Acquisition,
including, assumption of Indebtedness and the transfer of Property
(other than the Capital Stock of Parent Borrower) does not exceed
$100,000,000.

	8.9.	 	DISPOSITIONS

Make any Disposition, or permit any of its Subsidiaries so to do, except:

	 	(a)	 	Inter-Company Dispositions, provided that no Disposition by a
Domestic Subsidiary shall be permitted to a Subsidiary that is not a
Domestic Subsidiary, if, after giving effect to such Disposition,
the aggregate net book value of Property

60

 

	 	 	 	which is the subject of
such Dispositions during any fiscal year would exceed 5% of
Consolidated Shareholders’ Equity, all as determined in accordance
with the most recent annual financial statements delivered pursuant
to Section 7.1(c) preceding the proposed Disposition;
	 
	 	(b)	 	Dispositions of Property other than Inter-Company
Dispositions provided that (i) such Disposition will not have a
Material Adverse Effect, (ii) after giving effect to such
Disposition no Default or Event of Default would exist, and (iii)
after giving effect to such Disposition, the aggregate net book
value of Property which is the subject of Dispositions during any
fiscal year, less capital expenditures made during such fiscal year
by Parent Borrower and its Subsidiaries for tangible operating
assets to be used in the business of Parent Borrower and its
Subsidiaries does not exceed $25,000,000; and
	 
	 	(c)	 	A BGS Disposition. If Parent Borrower delivers to the Agent
on or before ten days prior to the consummation of a BGS
Disposition, an irrevocable election to have one or more of the
Subsidiaries of Parent Borrower included within BGS and no other
business segments of Parent Borrower and its Subsidiaries on a
Consolidated basis (collectively, the “BGS Entities”) considered as
an unrestricted Subsidiary then, upon consummation of the BGS
Disposition, (i) the selected BGS Entities shall not be considered
Subsidiaries of Parent Borrower for purposes of Sections 4, 7, 8,
and 9 of this Agreement, (ii) without limiting the generality of the
foregoing, the financial statements of the selected BGS Entities and
investments in the selected BGS Entities by Parent Borrower and
Parent Borrower’s other Subsidiaries, shall be excluded from the
Consolidated financial statements delivered thereafter under Section
7.1 of this Agreement, and from the computations of the financial
covenants set forth in Sections 8.1, 8.2, 8.3 and 8.4 of this
Agreement (to the extent the selected BGS Entities would otherwise
have remained Consolidated with Parent Borrower upon consummation of
a BGS Disposition), and (iv) the selected BGS Entities shall be
released from its obligations, if any, under the Guaranty.

	8.10.	 	INVESTMENTS

At any time on or after the date hereof, purchase or otherwise acquire or
invest in the Capital Stock of, or any other interest in, any Person, or make
any loan or advance to, or enter into any
arrangement for the purpose of providing funds or credit to, or make any other
investment, whether by way of capital contribution, time deposit or otherwise,
in or with any Person (all of which are sometimes referred to herein as
“Investments”), or permit any of its Subsidiaries so to do, except:

	 	(a)	 	Investments in direct obligations of Governmental Authorities
and financial institutions organized under the laws of the United
States or a state thereof and having capital, surplus and undivided
profits of at least $100,000,000;
	 
	 	(b)	 	Extensions of trade credit in the ordinary course of
business;

61

 

	 	(c)	 	Investments in Parent Borrower or Subsidiaries of Parent
Borrower (including entities which as a result of an Acquisition,
consolidation or merger permitted hereunder, become a Subsidiary);
provided, that, immediately after giving effect to such Investment,
the aggregate outstanding principal balance at such time of all such
Investments constituting debt Investments in Subsidiaries that are
not Domestic Subsidiaries, plus the aggregate consideration paid for
such Investments constituting equity Investments in Subsidiaries
that are not Domestic Subsidiaries, shall not at any time exceed an
amount equal to (i) $35,000,000, plus (ii) gains on such Investments
realized under GAAP after the Effective Date, minus (iii) losses on
such Investments realized under GAAP after the Effective Date; and
	 
	 	(d)	 	Any other Investment that, immediately after giving effect to
such Investment, the aggregate outstanding principal balance at such
time of all such Investments constituting debt Investments, plus the
aggregate consideration paid for such Investments constituting
outstanding equity Investments, shall not at any time exceed an
amount equal to (i) $25,000,000, plus (ii) gains on such Investments
realized under GAAP after the Effective Date, minus (iii) losses on
such Investments realized under GAAP after the Effective Date.

	8.11.	 	TRANSACTIONS WITH AFFILIATES

Enter, or permit any Subsidiary to enter, into any transaction, including,
without limitation, any purchase, sale, lease or exchange of property or the
rendering of any service, with any Affiliate unless such transaction is (a)
otherwise permitted under this Agreement, (b) in a manner consistent with the
general nature of Parent Borrower’s or such Subsidiary’s business, and (c) upon
fair and reasonable terms no less favorable to Parent Borrower or such
Subsidiary, as the case may be, than it would obtain in a comparable
arm’s-length transaction with a Person which is not an Affiliate.

	8.12.	 	LIMITATION ON NEGATIVE PLEDGE CLAUSES

From and after the Effective Date enter into, or permit any Subsidiary to enter
into, any agreement with any Person other than the Lenders pursuant to the Loan
Documents which prohibits or limits the ability of Parent Borrower or any of
its Subsidiaries to create, incur, assume or suffer to exist any Lien upon any
of its Properties, assets or revenues, whether now owned or hereafter acquired;
provided, that Parent Borrower or its Subsidiaries may enter into such an
agreement in connection with any Lien permitted by this Agreement, when such
prohibition or limitation is by its terms effective only against the Property
subject to such Lien.

	8.13.	 	RESTRICTED DISTRIBUTIONS

Make or permit any of its Subsidiaries to make any Restricted Distribution.

	8.14.	 	RESTRICTIONS AFFECTING SUBSIDIARIES

62

 

Enter into or suffer to exist, any agreement with any Person, other the Loan
Documents, which prohibits or limits the ability of any Subsidiary to (a) pay
dividends or make other distributions or pay any Indebtedness to Parent
Borrower or any Subsidiary, (b) make loans or advances to Parent Borrower or
any Subsidiary, or (c) transfer any of its Property to Parent Borrower or any
Subsidiary.

	8.15.	 	CONTINGENT OBLIGATIONS

Create, incur, assume or suffer to exist, or permit any Subsidiary to create,
incur, assume or suffer to exist, any Contingent Obligation except: (a) the
Guaranty; (b) Contingent Obligations made in the ordinary course of business by
Parent Borrower or any of its Subsidiaries with respect to obligations of
Parent Borrower or any of its Subsidiaries, provided such obligations of Parent
Borrower or its Subsidiaries are otherwise permitted under this Agreement; and
(c) Contingent Obligations with respect to or constituting Indebtedness
permitted pursuant to Section 8.5 hereof.

	8.16.	 	PAYMENTS AND PREPAYMENTS OF SUBORDINATED INDEBTEDNESS

Purchase, redeem, retire or otherwise acquire for value, other than by issuance
of shares of Capital Stock of a Credit Party, or set apart any money for a
sinking, defeasance or other analogous fund (or permit any Subsidiary to do any
of the foregoing) for the purchase, redemption, retirement or other acquisition
of, or make (or permit any Subsidiary to make) any voluntary payment or
prepayment of the principal of or interest on, or any other amount owing in
respect of, any Subordinated Indebtedness except for regularly scheduled
payments of principal and interest in respect thereof required pursuant to the
instruments evidencing such Subordinated Indebtedness to the extent expressly
approved by the Required Lenders.

	9.	 	DEFAULT
	 
	9.1.	 	EVENTS OF DEFAULT

The following shall each constitute an “Event of Default” hereunder:

         (a)  Failure to Pay Principal. Any payment of principal with respect to
any Loan shall not be made on the date when due and payable (whether upon
demand, at maturity, by reason of acceleration or otherwise);

         (b)  Failure to Pay Interest, Fees and Other Amounts. Any payment of
interest, fees, expenses or other amounts payable under any Loan Document or
otherwise to Agent with respect to the loan facility established hereunder
shall not be made within three Business Days of the date when due and payable;

         (c)  Failure to Perform Certain Covenants. The failure of any Borrower to
observe or perform any covenant or agreement contained in Section 2.8,
7.2(a)(i)(C), 7.3 or Section 8 or the breach of any representation,
certification or agreement contained in a certificate delivered pursuant to
clause (c) of Section 6.1;

63

 

         (d)  Other Covenants. The failure of any Credit Party to observe or
perform any other term, covenant, or agreement contained in any Loan Document
(other than as provided in Sections 9.1(a), (b), (c) or (e)) and such failure
shall have continued unremedied, and, if remediable such failure shall have
continued for a period of 30 days after the Agent or any Lender has notified
Parent Borrower in writing thereof;

         (e)  Misrepresentations. Any representation or warranty made by any Credit
Party (or by an officer thereof on its behalf) in any Loan Document or in any
certificate, report, opinion (other than an opinion of counsel) or other
document delivered or to be delivered pursuant thereto, shall prove to have
been incorrect or misleading (whether because of misstatement or omission) in
any material respect when made;

         (f)  Cross-Default. Indebtedness or any Contingent Obligation of Parent
Borrower (other than Indebtedness under the Loan Documents) or any of its
Subsidiaries, in an aggregate amount in excess of $10,000,000 shall not be paid
when due or within any grace period for the payment thereof; or Parent Borrower
or any of its Subsidiaries shall default in the observance or performance of
any other agreement or condition relating to any such Indebtedness or
Contingent Obligation or contained in any instrument or agreement evidencing,
securing or relating thereto, or any other event shall occur or condition exist
with respect to any such Indebtedness, the effect of which default with respect
to any such Indebtedness or Contingent Obligation or other event or condition
with respect to Indebtedness is (with or without the passage of time, the
giving of notice, or both, and without giving effect to any waiver or amendment
with respect thereto) to cause, or to permit the holder or holders of such
Indebtedness or beneficiary or beneficiaries of such Contingent Obligation (or
trustee or agent on behalf of such holder or holders or beneficiary or
beneficiaries) to cause, such
Indebtedness to become due prior to its stated maturity or to require such
Indebtedness to be purchased or repaid before its regular maturity or before
its regularly scheduled dates of payment or to cause such Contingent Obligation
to become payable;

         (g)  Insolvency. Any Credit Party or Material Subsidiary shall (i) suspend
or discontinue its business (except as may otherwise be permitted hereunder),
(ii) make an assignment for the benefit of creditors, (iii) generally not be
paying its debts as such debts become due, (iv) admit in writing its inability
to pay its debts as they become due, (v) file a voluntary petition in
bankruptcy, (vi) become insolvent (however such insolvency shall be evidenced),
(vii) file any petition or answer seeking for itself any reorganization,
arrangement, composition, readjustment of debt, liquidation or dissolution or
similar relief under any present or future statute, law or regulation of any
jurisdiction, domestic or foreign, (viii) petition or apply to any tribunal for
any receiver, custodian or any trustee (or other officer with similar powers)
with respect to it or any substantial part of its Property, (ix) be the subject
of any such proceeding filed against it which remains undismissed for a period
of 60 days, (x) file any answer admitting or not contesting the material
allegations of any such petition filed against it or any order, judgment or
decree approving such petition in any such proceeding, (xi) seek, approve,
consent to, or acquiesce in any such proceeding, or in the appointment of any
trustee, receiver, sequestrator, custodian, liquidator, or fiscal agent for it,
or any substantial part of its Property, or an order is entered appointing any
such trustee, receiver, custodian, liquidator or fiscal agent and such order
remains in effect for 60 days, or (xii) take any formal action for the

64

 

purpose
of effecting any of the foregoing or looking to the liquidation or dissolution
of such Credit Party or Material Subsidiary (except as may otherwise be
permitted hereunder);

         (h)  Involuntary Proceedings. An order for relief is entered under the
bankruptcy or insolvency laws of any jurisdiction (domestic or foreign) or any
other decree or order is entered by a court having jurisdiction (domestic or
foreign) (i) adjudging any Credit Party or Material Subsidiary bankrupt or
insolvent, (ii) approving as properly filed a petition seeking reorganization,
liquidation, arrangement, adjustment or composition of or in respect of any
Credit Party or Material Subsidiary under the bankruptcy or insolvency laws of
any jurisdiction, (iii) appointing a receiver, liquidator, assignee, trustee,
custodian, sequestrator (or other similar official) of any Credit Party or
Material Subsidiary or of any substantial part of the Property of any Credit
Party or Material Subsidiary, or (iv) ordering the winding up or liquidation of
the affairs of any Credit Party or Material Subsidiary, and any such decree or
order continues unstayed and in effect for a period of 60 days;

         (i)  Judgments. Judgments or decrees against Parent Borrower or any of its
Subsidiaries (excluding for purposes of such determination such amount of any
insurance proceeds paid to or on behalf of Parent Borrower or any of its
Subsidiaries in respect of such judgment or judgments or unconditionally
acknowledged in writing to be payable by the insurance carrier that issued the
related insurance policy) aggregating in excess of $10,000,000 shall remain
unpaid, unstayed on appeal, undischarged, unbonded or undismissed for a period
of 30 days;

         (j)  Enforceability of Loan Documents. Any Loan Document shall cease, for
any reason, to be in full force and effect, or any Credit Party shall so assert
in writing or shall disavow any of its obligations thereunder;

         (k)  ERISA. Any Termination Event shall occur; (ii) any Accumulated
Funding Deficiency, whether or not waived, shall exist with respect to any
Pension Plan; (iii) any Person shall engage in any Prohibited Transaction
involving any Employee Benefit Plan; (iv) Parent Borrower, any of its
Subsidiaries or any ERISA Affiliate shall fail to pay when due an amount which
is payable by it to the PBGC or to a Pension Plan under Title IV of ERISA; or
(v) any other event or condition shall occur or exist with respect to an
Employee Benefit Plan, which, in the case of clauses (i) through (v) of this
Section 9.1(k), would, individually or in the aggregate, have a Material
Adverse Effect; or

         (l)  Change of Control. The occurrence of a Change of Control.

	9.2.	 	CONTRACT REMEDIES

         (a)  Termination of Commitment; Acceleration. Upon the occurrence of an
Event of Default or at any time thereafter during the continuance thereof,

		
	 	         (i) if such event is an Event of Default specified in Section 9.1(g)
or 9.1(h) above with respect to any Domestic Borrower, the Commitments of
all of the Lenders and the Swingline Commitment of the Swingline Lender,
shall immediately and automatically terminate and the Loans, all accrued
and unpaid interest thereon and all other amounts 

65

 

		
	 	owing under the Loan
Documents shall immediately become due and payable, and the Agent may,
and, upon the direction of the Required Lenders shall, exercise any and
all remedies and other rights provided in the Loan Documents,

		
	 	         (ii) if such event is an Event of Default specified in Section 9.1(g)
or 9.1(h) above with respect to any other Borrower, the Commitments of all
of the Lenders with respect to Loans to be made to such Borrower shall
immediately and automatically terminate and the Subsidiary Borrower
Obligations of such Borrower shall immediately become due and payable,
and, in each case, the Agent may, and, upon the direction of the Required
Lenders shall, exercise any and all remedies and other rights provided in
the Loan Documents, and
	 
	 	         (iii) if such event is any other Event of Default (or an Event of
Default specified in Section 9.1(g) or 9.1(h) with respect to a Borrower
other than a Domestic Borrower), any or all of the following actions may
be taken: (A) with the consent of the Required Lenders, the Agent may,
and upon the direction of the Required Lenders shall, by notice to Parent
Borrower, declare the Commitments and the Swingline Commitment terminated
forthwith, whereupon such Commitments shall immediately terminate, and
(B) with the consent of the Required Lenders, the Agent may, and upon the
direction of the Required Lenders shall, by notice of default to Parent
Borrower, declare the Loans,
all accrued and unpaid interest thereon and all other amounts owing
under the Loan Documents to be due and payable forthwith, whereupon the
same shall immediately become due and payable, and the Agent may, and
upon the direction of the Required Lenders shall, exercise any and all
remedies and other rights provided in the Loan Documents.

Except as otherwise provided in this Section, presentment, demand, protest and
all other notices of any kind are hereby expressly waived. Each Borrower
hereby further expressly waives and covenants not to assert any appraisement,
valuation, stay, extension, redemption or similar laws, now or at any time
hereafter in force which might delay, prevent or otherwise impede the
performance or enforcement of any Loan Document.

         (b)  Application of Proceeds. In the event that any Commitments shall have
been terminated, or any Loans, any accrued and unpaid interest thereon or any
other amounts owing under the Loan Documents shall have been declared due and
payable, in each case pursuant to the provisions of this Section any funds
received by the Agent and the Lenders from or on behalf of Parent Borrower
(including, without limitation, from any Credit Party, other than a Subsidiary
Borrower that is not also a Guarantor Subsidiary) shall be applied by the Agent
and the Lenders in liquidation of the Loans and the other Obligations in the
following manner and order: (i) to the payment of interest on, and then the
principal portion of, any Loans which the Agent, in its capacity as Agent, may
have advanced on behalf of any Lender for which the Agent has not then been
reimbursed by such Lender or Parent Borrower; (ii) to the payment of any fees
or expenses due Agent from Parent Borrower, (iii) to reimburse the Agent, the
Lenders and the Swingline Lender for any expenses (to the extent not paid
pursuant to clause (ii) above) due from Parent Borrower pursuant to the
provisions of Section 12.5; (iv) to the payment of accrued Facility Fees and
all other fees, expenses and amounts due under the Loan Documents (other than
principal

66

 

and interest on the Loans); (v) to the payment of interest on
Swingline Loans; (vi) to the payment, pro rata according to the outstanding
principal amount of the Loans (other than Swingline Loans), of interest due on
such Loans of each Lender; (vii) to the payment of principal of Swingline
Loans; (viii) to the payment, pro rata according to the outstanding principal
amount of the Loans (other than Swingline Loans), of principal outstanding on
such the Loans; and (ix) to the payment of any other amounts owing to the Agent
and the Lenders under any Loan Document. Any funds received by the Agent and
the Lenders from a Credit Party that is a Subsidiary Borrower but not a
Guarantor Subsidiary shall be applied by the Agent and the Lenders in
liquidation of the Obligations of such Subsidiary Borrower in the same order as
the immediately preceding clauses (i) through (ix), to the extent applicable.

	10.	 	THE AGENT
	 
	10.1.	 	APPOINTMENT

Each Lender hereby irrevocably designates, appoints and authorizes Agent to
take such action as contractual representative on such Lender’s behalf under
the provisions of the Loan Documents and to exercise such powers and perform
such duties as are expressly delegated to such Agent by the terms of the Loan
Documents, together with such other powers as are reasonably incidental
thereto. Not in limitation of the foregoing, each Lender authorizes and directs
the Agent to enter
into the Loan Documents for the benefit of the Lenders. Notwithstanding any
provision to the contrary contained elsewhere in this Agreement or in any other
Loan Document, Agent shall not have any duties or responsibilities except those
expressly set forth herein or in the Loan Documents, or any fiduciary
relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into the
Loan Documents or otherwise exist against Agent.

	10.2.	 	DELEGATION OF DUTIES

The Agent may execute any of its duties under the Loan Documents by or through
agents or attorneys-in-fact and shall be entitled to rely upon and shall be
fully protected in, and shall not be under any liability for, relying upon, the
advice of counsel concerning all matters pertaining to such duties.

	10.3.	 	EXCULPATORY PROVISIONS

Neither the Agent nor any of its respective officers, directors, employees,
agents, attorneys-in-fact or affiliates shall be (a) liable for any action
lawfully taken or omitted to be taken by it or such Person under or in
connection with the Loan Documents (except for its own gross negligence or
willful misconduct), or (b) responsible in any manner to any of the Lenders for
any recitals, statements, representations or warranties made by any Credit
Party contained in the Loan Documents or in any certificate, report, statement
or other document referred to or provided for in, or received by Agent under or
in connection with, the Loan Documents or for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of any of the Loan
Documents or for any failure of any Credit Party or any other Person to perform
its obligations thereunder. Agent shall be under no obligation to any Lender to
ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, the Loan

67

 

Documents, or to inspect
the Property, books or records of Parent Borrower or any of its Subsidiaries.
The Lenders acknowledge that Agent shall not be under any duty to take any
discretionary action permitted under the Loan Documents unless Agent shall be
instructed in writing to do so by the Required Lenders and such instructions
shall be binding on all Lenders; provided, however, that Agent shall not be
required to take any action which exposes it to personal liability or is
contrary to law or any provision of the Loan Documents. Agent shall have no
liability or responsibility whatsoever, as Agent, to any Credit Party or any
other Person as a consequence of any failure or delay in performance, or any
breach, by any Lender of any of its obligations under any of the Loan
Documents.

	10.4.	 	RELIANCE BY THE AGENT

Agent shall be entitled to rely, and shall be fully protected in relying, upon
any writing, resolution, notice, consent, certificate, affidavit, opinion,
letter, cablegram, telegram, telecopy, telex or teletype message, statement,
order or other document or conversation believed by it to be genuine and
correct and to have been signed, sent or made by a proper Person or Persons and
upon advice and statements of legal counsel (including counsel to any Credit
Party), independent accountants and other experts selected by such Agent.
Agent may treat each Lender or the Person designated in the last notice filed
with the Agent under this Section, as the holder of all of
the interests of such Lender in its Loans, until written notice of transfer,
signed by such Lender (or the Person designated in the last notice filed with
the Agent) and by the Person designated in such written notice of transfer, in
form and substance satisfactory to the Agent and otherwise in accordance
herewith, shall have been filed with the Agent. Agent shall be under no duty
to examine or pass upon the validity, effectiveness, enforceability or
genuineness of the Loan Documents or any instrument, document or communication
furnished pursuant thereto or in connection therewith, and Agent shall be
entitled to assume that the same are valid, effective and genuine, have been
signed or sent by the proper parties and are what they purport to be. Agent
shall be fully justified in failing or refusing to take any action under the
Loan Documents unless it shall first receive such advice or concurrence of the
Required Lenders as it deems appropriate. Agent shall in all cases be fully
protected in acting, or in refraining from acting, under the Loan Documents in
accordance with a request or direction of the Required Lenders, and such
request or direction and any action taken or failure to act pursuant thereto
shall be binding upon all the Lenders and all future holders of the Loans.

	10.5.	 	NOTICE OF DEFAULT

Agent shall not be deemed to have knowledge or notice of the occurrence of any
Default unless Agent has received written notice thereof from a Lender or
Parent Borrower describing with reasonable specificity such Default and stating
that such notice is a “notice of default.” In the event that Agent receives
such a notice, Agent shall promptly give notice thereof to each Lender and
Parent Borrower. Subject to the terms and conditions contained herein, Agent
shall take such action with respect to such Default as shall be directed by the
Required Lenders, provided, however, that unless and until such Agent shall
have received such directions, such Agent may (but shall not be obligated to)
take such action, or refrain from taking such action, with respect to such
Default as it shall deem to be in the best interests of the Lenders.

68

 

10.6.   NON-RELIANCE ON THE AGENTS AND OTHER LENDERS

Each Lender expressly acknowledges that neither Agent nor any of its respective
officers, directors, employees, agents, attorneys-in-fact or affiliates has
made any representations or warranties to it and that no act by Agent
hereinafter, including any review of the affairs of Parent Borrower or any of
its Subsidiaries, shall be deemed to constitute any representation or warranty
by Agent to any Lender. Each Lender represents to Agent that it has,
independently and without reliance upon Agent or any Lender, and based on such
documents and information as it has deemed appropriate made its own evaluation
of and investigation into the business, operations, Property, financial and
other condition and creditworthiness of each Credit Party and the value and
Lien status of any collateral security and made its own decision to enter into
this Agreement. Each Lender also represents that it will, independently and
without reliance upon Agent or any Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, evaluations and decisions in taking or not taking action under
any Loan Document, and to make such investigation as it deems necessary to
inform itself as to the business, operations, Property, financial and other
condition and creditworthiness of each Credit Party and the value and Lien
status of any collateral security. Except for notices, reports and other
documents expressly required to be furnished to the Lenders by Agent hereunder,
Agent shall not have any duty or responsibility to provide any Lender with any
credit or other information concerning the business, operations, Property,
financial and other condition or creditworthiness of any Credit Party which at
any time may come into the possession of Agent or any of its officers,
directors, employees, agents, attorneys-in-fact or affiliates. Each Lender
acknowledges that the Agent“s legal counsel in connection with the transactions
contemplated by this Agreement is only acting as counsel to the Agent and is
not acting as counsel to such Lender.

10.7.   INDEMNIFICATION

Each Lender agrees to indemnify and hold harmless Agent in its capacity as such
(to the extent not promptly reimbursed by Parent Borrower and without limiting
the obligation of Parent Borrower to do so), pro rata according to (a) at any
time prior to the Commitment Termination Date, its Commitment Percentage, and
(b) at all other times, (i) if no Loan is outstanding, its Commitment
Percentage, and (ii) if any Loan is outstanding, the percentage equal to the
fraction, the numerator of which is the outstanding principal amount of the
Loans of such Lender (determined, in the case of each Alternate Currency Loan,
on the basis of the Currency Equivalent in Dollars thereof), and the
denominator of which is the Aggregate Credit Exposure, from and against any and
all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind whatsoever, including any
amounts paid to the Lenders (through Agent) by any Credit Party pursuant to
the terms of the Loan Documents, that are subsequently rescinded or avoided, or
must otherwise be restored or returned) which may at any time (including at any
time following the payment of the Loans) be imposed on, incurred by or asserted
against Agent in any way relating to or arising out of the Loan Documents or
any other documents contemplated by or referred to therein or the transactions
contemplated thereby or any action taken or omitted to be taken by Agent under
or in connection with any of the foregoing; provided, however, that no Lender
shall be liable to Agent for the payment of any portion of such liabilities,
obligations, losses, damages, penalties,

69

 

actions, judgments, suits, costs, expenses or disbursements to the extent resulting
primarily from the finally adjudicated gross negligence or willful misconduct
of the Agent. Without limitation of the foregoing, each Lender agrees to
reimburse Agent promptly upon demand for its pro rata share (calculated as set
forth in the first sentence of this Section) of any costs and expenses
(including reasonable fees and expenses of counsel) payable by any Borrower
under Section 12.5, to the extent that Agent has not been reimbursed for such
costs and expenses by a Credit Party, provided, however, that, in the event of
such reimbursement by such Credit Party, Agent shall promptly remit to each
Lender which shall have reimbursed Agent for such costs and expenses under this
Section 10.7 its pro rata share (according to the amount of such reimbursement
by such Lender) of the amount of such reimbursement by any Credit Party. The
failure of any Lender to reimburse Agent promptly upon demand for its pro rata
share (as so calculated) of any amount required to be paid by the Lenders to
such Agent as provided in this Section shall not relieve any other Lender of
its obligation hereunder to reimburse Agent for its pro rata share (as so
calculated) of such amount, but no Lender shall be responsible for the failure
of another Lender to reimburse the Agent for such other Lender’s pro rata share
(as so calculated) of such amount. The agreements in this Section shall survive
the termination of the Commitments of all of the Lenders and the payment of all
amounts payable under the Loan Documents.

10.8.   LENDERS IN THEIR RESPECTIVE INDIVIDUAL CAPACITIES

Fleet and each Lender and the respective affiliates thereof may make secured or
unsecured loans to, accept deposits from, issue letters of credit for the
account of, act as trustee under indentures of, and generally engage in any
kind of business with, Parent Borrower and its Subsidiaries as though Fleet was
not the Agent hereunder, and each Lender was not a Lender hereunder. With
respect to the Commitments made or renewed by Fleet and the Loans made it, it
shall have the same rights and powers under the Loan Documents as any Lender
and may exercise the same as though it were not the Agent, and the terms
“Lender” and “Lenders” shall in each case include Fleet. Further, the Agent
and any of its affiliates may accept fees and other consideration from Parent
Borrower and its Subsidiaries for services in connection with this Agreement or
otherwise without having to account for the same to the other Lenders.

10.9.   SUCCESSOR AGENTS

If at any time Agent deems it advisable, in its sole discretion, it may submit
to each of the Lenders a written notification of its resignation as such Agent
under this Agreement, such resignation to be effective on the earlier to occur
of (i) the thirtieth day after the date of such notice, and (ii) the date upon
which any successor to such Agent, in accordance with the provisions of this
Section 10.9, shall have accepted in writing its appointment as such successor
Agent. Upon any such resignation, the Required Lenders shall have the right,
with the consent of Parent Borrower, which consent shall not be unreasonably
withheld and shall not be required upon the occurrence and during the
continuance of an Event of Default, to appoint from among the Lenders a
successor Agent. If no such successor Agent shall have been so appointed by the
Required Lenders and accepted such appointment within 30 days after the
retiring Agent’s giving of notice of resignation, then the retiring Agent may,
with the consent of Parent Borrower, which consent shall not be unreasonably
withheld and shall not be required upon the occurrence and

70

 

during the continuance of an Event of Default, on behalf of the Lenders,
appoint a successor Agent therefor. Upon the written acceptance of any appointment as an Agent
hereunder by a successor Agent, such successor Agent shall automatically become
a party to this Agreement and shall thereupon succeed to and become vested with
all the rights, powers, privileges and duties of the retiring Agent, and the
retiring Agent’s rights, powers, privileges and duties as an Agent under this
Agreement shall be terminated. Parent Borrower and the Lenders shall execute
such documents as shall be necessary to effect such appointment. After any
retiring Agent’s resignation as Agent, the provisions of this Section 10 shall
inure to its benefit as to any actions taken or omitted to be taken by it while
it was an Agent under this Agreement. If at any time there shall not be a duly
appointed and acting Agent, upon notice duly given, each Borrower agrees to
make each payment when due hereunder and the other Loan Documents directly to
the Lenders entitled thereto during such time. Any such successor Agent shall
be a commercial bank organized under the laws of the United States or of any
State thereof.

10.10.   TITLED AGENTS

Each of the Titled Agents in each such respective capacity, assumes no
responsibility or obligation hereunder, including, without limitation, for
servicing, enforcement or collection of any of the Loans, nor any duties as an
agent hereunder for the Lenders. The titles of Arranger, Syndication Agent and
Documentation Agent are solely honorific and imply no fiduciary responsibility
on the part of the Titled Agents to the Agent, or any Borrower or any Lender
and the use of such titles does not impose on the Titled Agents any duties or
obligations greater than those of any other Lender or entitle the Titled Agents
to any rights other than those to which any other Lender is entitled.

11.   GUARANTY OF THE PARENT BORROWER

In order to induce the Agent and the Lenders to enter into this Agreement, and
the Lenders to make the Loans, Parent Borrower hereby agrees as follows:

11.1.   GUARANTY

Parent Borrower hereby absolutely, irrevocably and unconditionally guarantees
the full and prompt payment when due in the applicable Currency, whether at
stated maturity, by acceleration, by mandatory prepayment, by notice of
intention to prepay or otherwise, of all of the obligations and liabilities of
each Subsidiary Borrower under the Loan Documents, in each case whether fixed,
contingent, now existing or hereafter arising, created or assumed, incurred or
acquired, and whether before or after the occurrence of any Event of Default
under Sections 9.1(g) or (h), including any obligation or liability in respect
of any breach of any representation or warranty, and all post-petition
interest, funding losses and make-whole premiums, whether or not allowed as a
claim in any proceeding arising in connection with any Event of Default under
Sections 9.1(g) or (h) (collectively, the “Borrower Obligations”). This Section
11 constitutes a guaranty of payment, and neither the Agent nor any of the
Lenders shall have any obligation to enforce any Loan Document or exercise any
right or remedy with respect to any collateral security thereunder by any
action, including making or perfecting any claim against any Person or any
collateral security for any of the Borrower Obligations prior to being entitled
to the

71

 

benefits of this Section 11. The Agent may, at its option, proceed against the Parent
Borrower, in the first instance, to enforce any of the obligations and
liabilities of the Parent Borrower under this Section 11, whether fixed,
contingent, now existing or hereafter arising, created, assumed, incurred or
acquired (collectively, the “Parent Guarantor Obligations”) without first
proceeding against any Subsidiary Borrower or any other Person, and without
first resorting to any other rights or remedies, as the Agent may deem
advisable. In furtherance hereof, if the Agent or any Lender is prevented by
law from collecting or otherwise hindered from collecting or otherwise
enforcing any Obligation in accordance with its terms, the Agent or such
Lender, as the case may be, shall be entitled to receive hereunder from the
Parent Borrower after demand therefor, the sums which would have been otherwise
due had such collection or enforcement not been prevented or hindered.

11.2.   ABSOLUTE OBLIGATION

Subject to Section 11.4, Parent Borrower shall not be released from liability
hereunder unless and until the Commitment Termination Date shall have occurred
and either (a) each Subsidiary Borrower shall have paid in full the outstanding
principal amount of the Loans made to it, together with all accrued interest
thereon and all other sums then due and owing by it under the Loan Documents,
or (b) the Parent Guarantor Obligations shall have been paid in full. The
Parent Borrower acknowledges and agrees that (i) neither the Agent nor any of
the Lenders has made any representation or warranty to the Parent Borrower with
respect to any Subsidiary Borrower, the other Subsidiaries of the Parent
Borrower, any Loan Document, or any agreement, instrument or document executed
or delivered in connection therewith, or any other matter whatsoever, and (ii)
the Parent Borrower shall be liable hereunder, and such liability shall not be
affected or impaired, irrespective of (A) the validity or enforceability of any
Loan Document or any agreement, instrument or document executed or delivered in
connection therewith, or the collectability of any of the Borrower Obligations,
(B) the preference or priority ranking with respect to any of the Borrower
Obligations, (C) the existence, validity, enforceability or perfection of any
security interest or collateral security under any Loan Document or the
release, exchange, substitution or loss or impairment of any such security
interest or collateral security, (D) any failure, delay, neglect or omission by
the Agent or any Lender to realize upon or protect any direct or indirect
collateral security, indebtedness, liability or obligation, any Loan Document
or any agreement, instrument or document executed or delivered in connection
therewith, or any of the Borrower Obligations, (E) the existence or exercise of
any right of set-off by the Agent or any Lender, (F) the existence, validity or
enforceability of any other guaranty with respect to any of the Borrower
Obligations, the liability of any other Person in respect of any of the
Borrower Obligations, or the release of any such Person or any other guarantor
of any of the Borrower Obligations, (G) any act or omission of the Agent or any
Lender in connection with the administration of any Loan Document or any of the
Borrower Obligations, (H) the bankruptcy, insolvency, reorganization or
receivership of, or any other proceeding for the relief of debtors commenced by
or against, any Person, (I) the disaffirmance or rejection, or the purported
disaffirmance or purported rejection, of any of the Borrower Obligations, any
Loan Document or any agreement, instrument or document executed or delivered in
connection therewith, in any bankruptcy, insolvency, reorganization or
receivership, or any other proceeding for the relief of debtor, relating to any
Person, (J) any law, regulation or decree now or hereafter in effect which
might in any manner affect any of the terms or provisions of any Loan Document

72

 

or any agreement, instrument or document executed or delivered in connection
therewith or any of the Borrower Obligations, or which might cause or permit to
be invoked any alteration in the time, amount, manner or payment or performance
of any of the obligations and liabilities of any Subsidiary Borrower (including
the Borrower Obligations), (K) the merger or consolidation of any Subsidiary
Borrower into or with any Person, (L) the sale by any Subsidiary Borrower of
all or any part of its assets, (M) the fact that at any time and from time to
time none of the Borrower Obligations may be outstanding or owing to the Agent
or any Lender, (N) any amendment or modification of, or supplement to, any Loan
Document, or (O) any other reason or circumstance which might otherwise
constitute a defense available to or a discharge of any Subsidiary Borrower in
respect of its obligations or liabilities (including the Borrower Obligations)
or of the Parent Borrower in respect of any of the Parent Guarantor Obligations
(other than by the performance in full thereof).

11.3.   REPAYMENT IN BANKRUPTCY

If, at any time or times subsequent to the payment of all or any part of the
Borrower Obligations or the Parent Guarantor Obligations, the Agent or any
Lender shall be required to repay any amounts previously paid by or on behalf
of any Subsidiary Borrower or the Parent Borrower in reduction thereof by
virtue of an order of any court having jurisdiction in the premises, including
as a result of an adjudication that such amounts constituted preferential
payments or fraudulent conveyances, the Parent Borrower unconditionally agrees
to pay to the Agent within 10 days after demand a sum in cash equal to the
amount of such repayment, together with interest on such amount from the date
of such repayment by the Agent or such Lender, as the case may be, to the date
of payment to the Agent at the applicable after-maturity rate set forth in
Section 3.1.

11.4.   NO SUBROGATION

The Parent Borrower expressly waives any and all rights of subrogation,
reimbursement, indemnity, exoneration, contribution or any other claim which
Parent Borrower may now or hereafter have against any Subsidiary Borrower, any
other Guarantor or any other Person directly or contingently liable for the
Borrower Obligations, or against or with respect to such Subsidiary Borrower’s
or such other Guarantor’s Property, arising from the existence or performance
of this Section 11 until the Borrower Obligations have been indefeasibly paid
in full and the Commitments shall have been irrevocably terminated.

12   OTHER PROVISIONS

12.1.   AMENDMENTS AND WAIVERS

Notwithstanding anything to the contrary contained in any Loan Document, with
the written consent of the Required Lenders, the Agent, on the one hand, and
Borrower or any Guarantor Subsidiary, as the case may be, on the other hand
may, from time to time, enter into written amendments, supplements or
modifications thereof and, with the consent of the Required Lenders, the Agent
on behalf of the Lenders may execute and deliver to Borrower or any
Guarantor Subsidiary, as the case may be, a written instrument waiving or
consenting to the departure from, on such terms and conditions as the Agent may
specify in such instrument, any

73

 

 of the requirements of the Loan Documents or any Default or Event of Default
and its consequences; provided, however, that no such amendment, supplement,
modification, waiver or consent shall (a) increase the amount or length of any
Lender’s Commitment, reduce the amount or extend the maturity of any Loan, or
reduce the rate of interest or extend the time of payment of interest thereon,
or reduce any fee (including the Facility Fee) payable to any Lender under the
Loan Documents, in each case without the prior written consent of the Lender
directly affected thereby, (b) amend, modify or waive any provision of Section
2.1(a) or this Section 12.1, amend or modify the definition of “Alternate
Currency,” reduce the percentage specified in the definition of Required
Lenders, consent to the assignment or transfer by any Credit Party of its
rights and obligations under the Loan Documents, in each case without the prior
written consent of each Lender, (c) amend, modify or waive any provision of
Section 10 without the prior written consent of Agent, or (d) amend Section
12.10 or any other provision hereof in a manner to alter the pro rata sharing
of payments among the Lenders. Any such amendment, supplement, modification,
waiver or consent shall apply equally to each of the Lenders and shall be
binding upon the parties to the applicable agreement or document, the Lenders,
the Agent and all future holders of the Loans. In the case of any waiver, the
parties to the applicable agreement or document, the Lenders and Agent shall be
restored to their former position and rights hereunder and under the other Loan
Documents, and any Default or Event of Default waived shall not extend to any
subsequent or other Default or Event of Default, or impair any right consequent
thereon.

12.2.   NOTICES

All notices and other communications under the Loan Documents shall be given to
each party hereto, initially, at the following address, and, thereafter, to
such other address through which it may from time to time be accepting notices,
as designated by it in writing to Agent and Parent Borrower:

         (a)   To Parent Borrower or any other Borrower. if to Parent Borrower or any other
Borrower, the office, branch or affiliate thereof designated as its address for
notices on Exhibit Q or the Borrower Addendum, if any, executed and delivered
with respect to such Borrower pursuant to Section 2.13;

         (b)   To a Lender. if to any Lender, the office, branch, affiliate, or correspondent
bank thereof designated as its address for notices in Exhibit N;

         (c)   To the Agent. if to the Agent, the office, branch, affiliate, or
correspondent bank thereof designated as its address for notices in Exhibit A;
and

         (d)   Effectiveness of Notice. Such notices and other communications will be
effective only if and when given in writing, and shall be deemed to have been
given three days after deposit in the mail, designated as certified mail,
return receipt requested, postage-prepaid, at the applicable address specified
above, or when delivered at the applicable address specified above, or when
sent by telecopy addressed to the party to which such notice is directed at its
address determined
as provided above and receipt is confirmed, except that any notice, request or
demand by any Borrower to or upon Agent or the Lenders pursuant to Sections
2.3, 2.6, 2.7 or

74

 

3.3 shall not be effective until received. Any party to a Loan Document may
rely on signatures of the parties thereto which are transmitted by fax or other
electronic means as fully as if originally signed.

12.3.   NO WAIVER; CUMULATIVE REMEDIES

No failure to exercise and no delay in exercising, on the part of Agent or any
Lender, any right, remedy, power or privilege under any Loan Document shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy, power or privilege under any Loan Document preclude any other or
further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges under the Loan Documents
are cumulative and not exclusive of any rights, remedies, powers and privileges
provided by law.

12.4.   SURVIVAL OF REPRESENTATIONS AND WARRANTIES AND CERTAIN OBLIGATIONS

         (a)   Representations and Warranties. All representations and warranties made under
the Loan Documents and in any document, certificate, instrument or statement
delivered pursuant thereto or in connection therewith shall survive the
execution and delivery of the Loan Documents.

         (b)   Obligations. The obligations of Borrowers under Sections 3.4, 3.5, 3.6, 3.7,
3.8, 3.9, 3.10, 12.5, 12.7 and 12.13(b) shall survive the termination of the
Commitments and the payment of the Loans and all other amounts payable under
the Loan Documents.

12.5.   EXPENSES

Parent Borrower agrees, promptly upon presentation of a statement or invoice
therefor, and whether any Loan is made (a) to pay or reimburse the Agent for
all its reasonable out-of-pocket costs and expenses reasonably incurred in
connection with the development, preparation and execution of, the Loan
Documents and any amendment, supplement or modification thereto (whether or not
executed or effective), any documents prepared in connection therewith and the
consummation of the transactions contemplated thereby, including the reasonable
fees and disbursements of Special Counsel, (b) to pay or reimburse the Agent
and the Lenders for all of their respective costs and expenses, including
reasonable fees and disbursements of counsel, incurred in connection with (i)
any enforcement or collection proceedings resulting from any Default or Event
of Default or in connection with the negotiation of any restructuring or
“work-out” (whether consummated or not) of the obligations of any Credit Party
under any of the Loan Documents, including any amendment, supplement or
modification thereto or any waiver or consent thereunder (in each case whether
or not executed or effective) in connection therewith, and (ii) the enforcement
of this Section, (c) to pay, indemnify, and hold each of the Lenders and the
Agent harmless from and against, any and all recording and filing fees and any
and all liabilities with respect to, or resulting from any delay in paying,
stamp, excise and other similar taxes, if any, which may be payable or
determined to be payable in connection with the execution and delivery of, or
consummation of any of the transactions contemplated by, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of,
the

75

 

Loan Documents and any such other documents, and (d) to pay, indemnify and hold
each of the Lenders and the Agent and each of their respective affiliates,
officers, directors and employees harmless from and against any and all other
liabilities, obligations, claims, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever (including reasonable counsel fees and disbursements) with respect
to the enforcement and performance of the Loan Documents, the use of the
proceeds of the Loans and the enforcement and performance of the provisions of
any subordination agreement involving the Agent and the Lenders (all the
foregoing, collectively, the “Indemnified Liabilities”), and, if and to the
extent that the foregoing indemnity may be unenforceable for any reason, Parent
Borrower agrees to make the maximum payment not prohibited under applicable
law; provided, however, that Parent Borrower shall have no obligation to pay
Indemnified Liabilities to Agent or any Lender, as the case may be, arising
from the gross negligence or willful misconduct of Agent or such Lender, as
the case may be, or claims between one indemnified party and another
indemnified party. The agreements in this Section shall survive the termination
of the Commitments and the payment of all amounts payable under the Loan
Documents.

12.6.   ASSIGNMENTS AND PARTICIPATIONS

         (a)   Binding Effect. The Loan Documents shall be binding upon and inure to the
benefit of Parent Borrower, the other Borrowers, the Lenders, the Agent, all
future holders of the Loans, and their respective successors and assigns,
except that neither Parent Borrower nor any other Borrower may assign, delegate
or transfer any of its rights or obligations under the Loan Documents without
the prior written consent of the Agent and each Lender.

         (b)   Assignments. In addition to its rights under Section 12.6(e), each Lender
shall have the right to sell, assign, transfer or negotiate (each an
“Assignment”) one hundred percent, or any lesser percentage, of its rights and
obligations under the Loan Documents to any Subsidiary or affiliate of such
Lender, to any other Lender, or to any other bank, insurance company, financial
institution, pension fund, mutual fund or other similar fund (including,
without limitation, an Approved Fund or CLO) (each an “Eligible Assignee”),
provided that (i) each such Assignment shall be of a constant, and not a
varying, percentage of all of the assignor Lender’s rights and obligations
under the Loan Documents, (ii) the Commitment assigned shall be not less than
$5,000,000, or the full Commitment Amount of such assignor Lender’s Commitment,
(iii) unless the assignee is another Lender or a Subsidiary or an Affiliate of
any Lender (in which case no claims may be made by such assignee pursuant to
Section 3.5, 3.6, 3.7, 3.8 or 3.9, in each case except to the extent that the
assignor Lender would otherwise have the right to do so), Parent Borrower and
the Agent shall have consented thereto in writing (which consents shall not be
unreasonably withheld or delayed and, in the case of Parent Borrower, shall not
be required (x) upon the occurrence and during the continuance of an Event of
Default, or (y) for a proposed assignment to an Approved Fund with respect to
the assignor Lender; for avoidance of doubt, it shall not be unreasonable for
Parent Borrower to withhold such consent if Parent Borrower reasonably believes
that assignee could assert a claim pursuant to Section 3.9 based on applicable
law existing on the proposed date of such assignment that the assignor Lender
could not similarly assert if it remained as a Lender), and (iv) the assignor
Lender and such assignee shall deliver to the Agent three copies of an Assignment and Acceptance Agreement executed by
each of them, along with an assignment fee in the sum of $3,500 for the

76

 

account of the Agent. Upon receipt of such number of executed copies of each
such Assignment and Acceptance Agreement, together with the assignment fee
therefor and Parent Borrower’s and the Agent’s consents to such Assignment, if
required, the Agent shall record the same and execute not less than two copies
of such Assignment and Acceptance Agreement in the appropriate place, deliver
one such copy to the assignor and one such copy to the assignee, and deliver
one photocopy thereof, as executed, to Parent Borrower. From and after the
effective date specified in such Assignment and Acceptance Agreement, the
assignee thereunder shall be a party hereto and shall for all purposes of this
Agreement and the other Loan Documents be deemed a “Lender” and, to the extent
provided in such Assignment and Acceptance Agreement, the assignor Lender
thereunder shall be released from its obligations under this Agreement and the
other Loan Documents. The Agent shall be entitled to rely upon the
representations and warranties made by the assignee under each Assignment and
Acceptance Agreement. Notwithstanding the foregoing, in the case of an
assignment to a CLO, the assignor Lender shall retain the sole right to approve
any amendment, modification or waiver of any provision of this Agreement,
provided that the Assignment and Assumption between such Lender and such CLO
may provide that such Lender will not, without the consent of such CLO, agree
to any amendment, modification or waiver described in clause (a) of Section
12.1 that affects such CLO.

         (c)   Participations. In addition to the participations provided for in Section
12.10 (a) and Section 2.11(e), each Lender may grant participations in all or
any part of its rights under the Loan Documents to one or more Persons,
provided that (i) such Lender’s obligations under this Agreement and the other
Loan Documents shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties to this Agreement and the other Loan Documents
for the performance of such obligations, (iii) Borrowers, the Agent and the
other Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement and
the other Loan Documents, (iv) the granting of such participation does not
require that any additional loss, cost or expense be borne by any Borrower at
any time, and (v) the voting rights of any holder of any participation shall be
limited to the voting rights of such Lender under Section 12.1(a).

         (d)   Relief from Obligations. No Lender shall, as between and among Credit Parties,
the Agent and such Lender, as the case may be, be relieved of any of its
obligations under the Loan Documents as a result of any Assignment or the
granting of any participation in all or any part of its rights under the Loan
Documents, except that it shall be relieved of its obligations to the extent of
any such Assignment of all or any part of its rights and obligations under the
Loan Documents pursuant to Section 12.6(b).

         (e)   Federal Reserve Assignment. Any Lender may at any time pledge or assign all or
any portion of its rights under the Loan Documents to any of the twelve Federal
Reserve Banks organized under Section 4 of the Federal Reserve Act, 12 U.S.C.
Section 341. No such pledge or assignment or enforcement thereof shall release
such assignor from its obligations under any of the Loan Documents.

12.7.   INDEMNITY

77

 

Parent Borrower agrees to defend, protect, indemnify, and hold harmless Agent,
and each and all of the Lenders, each of their respective affiliates and each
of the respective officers, directors, employees and agents of each of the
foregoing (each an “Indemnified Person”) from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, claims, costs, expenses and disbursements of any kind or nature
whatsoever (including the reasonable fees and disbursements of counsel to such
Indemnified Persons in connection with any investigative, administrative or
judicial proceeding, whether direct, indirect or consequential and whether
based on any federal or state laws or other statutory regulations of any
jurisdiction, including securities and commercial laws and regulations, under
common law or at equitable cause, or on contract or otherwise, including any
liabilities and costs under Environmental Laws, federal, state or local health
or safety laws, regulations, or common law principles, arising from or in
connection with the past, present or future operations of Parent Borrower or
any of its Subsidiaries or their respective predecessors in interest, or the
past, present or future environmental condition of the Property of Parent
Borrower or any of its Subsidiaries, the presence of asbestos-containing
materials at any such Property, or the release or threatened release of any
hazardous substance into the environment from any such Property) in any manner
relating to or arising out of the Loan Documents, any commitment letter or fee
letter executed and delivered by Parent Borrower or any of its Subsidiaries
and/or the Agent, the capitalization of Parent Borrower or any of its
Subsidiaries, the Commitments, the making of, management of and participation
in the Loans, or the use or intended use of the proceeds of the Loans
hereunder, provided that Parent Borrower shall have no obligation under this
Section to an Indemnified Person with respect to any of the foregoing to the
extent resulting primarily out of the gross negligence or willful misconduct of
such Indemnified Person or arising solely from claims between one such
Indemnified Person and another such Indemnified Person. The indemnity set forth
herein shall be in addition to any other obligations or liabilities of Parent
Borrower to each Indemnified Person under the Loan Documents or at common law
or otherwise, and shall survive any termination of the Loan Documents, the
expiration of the Commitments and the payment of all Indebtedness under the
Loan Documents.

12.8.   LIMITATION OF LIABILITY

No claim may be made by Parent Borrower, any of its Subsidiaries, any Lender or
other Person against Agent, any Lender, or any directors, officers, employees,
or agents of any of them for any special, indirect, consequential or punitive
damages in respect of any claim for breach of contract or any other theory of
liability arising out of or related to the transactions contemplated by any
Loan Document, or any act, omission or event occurring in connection therewith,
and Parent Borrower, each of its Subsidiaries, each Lender and each such other
Person hereby waives, releases and agrees not to sue upon any claim for any
such damages, whether or not accrued and whether or not known or suspected to
exist in its favor.

78

 

12.9.   COUNTERPARTS

This Agreement may be executed by one or more of the parties hereto on any
number of separate counterparts and all of said counterparts taken together
shall be deemed to constitute one and the same document. It shall not be
necessary in making proof of any Loan Document to produce or account for more
than one counterpart signed by the party to be charged. A counterpart of any
Loan Document or to any document evidencing, and of any an amendment,
modification, consent or waiver to or of any Loan Document transmitted by
telecopy shall be deemed to be an originally executed counterpart. A set of the
copies of the Loan Documents signed by all the parties thereto shall be
deposited with Parent Borrower and Agent. Any party to a Loan Document may rely
upon the signatures of any other party thereto which are transmitted by
telecopy or other electronic means to the same extent as if originally signed.

12.10.   ADJUSTMENTS; SET-OFF

         (a)   Adjustments. If a Lender shall obtain payment of any principal of, or interest
on, any Loan made by it to a Borrower under this Agreement, or shall obtain
payment on any other Obligation owing by a Credit Party through the exercise of
any right of set-off, banker’s lien or counterclaim or similar right or
otherwise or through voluntary prepayments directly to a Lender or other
payments made by a Credit Party to a Lender not in accordance with the terms of
this Agreement or other Loan Documents and such payment should be distributed
to the Lenders pro rata or on the basis of their Commitment Percentages in
accordance with Section 2.5(a) or Section 9.2(b), as applicable, such Lender
shall promptly purchase from the other Lenders participations in the Loans made
by the other Lenders or other Obligations owed to such other Lenders in such
amounts, and make such other adjustments from time to time as shall be
equitable, to the end that all the Lenders shall share the benefit of such
payment (net of any reasonable expenses which may be incurred by such Lender in
obtaining or preserving such benefit) pro rata or in accordance with their
Commitment Percentages, as applicable, in accordance with Section 2.5(a) or
Section 9.2(b). To such end, all the Lenders shall make appropriate
adjustments among themselves (by the resale of participations sold or
otherwise) if such payment is rescinded or must otherwise be restored. Each
Lender shall include in any arrangement or agreement it enters into with any
participant in such Lender’s interests hereunder, an undertaking by such
participant substantially similar to the foregoing provisions of this Section
12.10(a). Each Borrower expressly consents to the foregoing arrangements and
agrees that any holder of a participation in any Obligation so purchased or
otherwise acquired may exercise any and all rights of banker’s lien, set-off or
counterclaim with respect to any and all monies owing by such Borrower to such
holder as fully as if such holder were a holder of such Obligation in the
amount of the participation held by such holder. Nothing contained herein
shall require any Lender to exercise any such right of set-off, counterclaim or
banker’s lien or shall affect the right of any Lender to exercise, and retain
the benefit of exercising, any such right with respect to any other
indebtedness or obligation of a Credit Party.

         (b)   Set-Off. In addition to any rights and remedies provided by law, upon and
during the continuance of an Event of Default, the Agent, each Lender, any
participant with such Lender in the Loans and each Affiliate of each Lender and
the Agent shall have the right, without prior

79

 

notice to any Credit Party, any such notice being expressly waived by Borrowers
to the extent not prohibited by applicable law, to set-off and to appropriate
and to apply any and all deposits (general or special, including, but not
limited to, indebtedness evidenced by certificates of deposit, whether matured
or unmatured) and any other indebtedness at any time held or owing by the
Agent, such Lender, any Affiliate of the Agent or such Lender or any
participant to or for the credit or the account of any Borrower against and on
account of the Obligations, irrespective of whether or not the Agent or any
Lender, shall have made demand under this Agreement or any of the other Loan
Documents or the Agent or any Lender shall have declared any or all of the
Obligations to be due and payable as permitted by Section 9.2 of this Agreement
and although such Obligations shall be contingent or unmatured. To the extent
not prohibited by applicable law, the aforesaid right of set-off may be
exercised by the Agent and each Lender and participant in the Loans and by each
Affiliate of a Lender or the Agent against any Borrower or against any trustee
in bankruptcy, custodian, debtor in possession, assignee for the benefit of
creditors, receiver, or execution, judgment or attachment creditor of any
Borrower or against anyone else claiming through or against any Borrower or
such trustee in bankruptcy, custodian, debtor in possession, assignee for the
benefit of creditors, receiver, or execution, judgment or attachment creditor,
notwithstanding the fact that such right of set-off shall not have been
exercised by any such Person prior to the making, filing or issuance, or
service upon such Person of, or of notice of, any such petition, assignment for
the benefit of creditors, appointment or application for the appointment of a
receiver, or issuance of execution, subpoena, order or warrant. Each Lender
agrees promptly to notify Parent Borrower and the Agent after any such set-off
and application made by such Lender, any of its Affiliates or any of its
participants in the Loans or any exercise of similar set-off rights that any of
them exercises against deposits or other indebtedness to or for the credit of
any Borrower which is applied against the Obligations (and the Agent shall
promptly notify all of the other Lenders thereof), provided that the failure to
give such notice to Parent Borrower or Agent shall not affect the validity of
such set-off and application. Agent shall also promptly notify the Parent
Borrower after any such set-off and application made by it or any of its
Affiliates, provided that the failure to give such notice shall not affect the
validity of such set-off and application. Each Borrower hereby grants to
Agent, each Lender and Affiliate of each Lender and Agent and each participant
in the Loans a continuing lien, security interest and right of setoff as
security for all Obligations upon and against all deposits, credits, collateral
and property, now or hereafter in the possession, custody, safekeeping or
control of such Persons and each of their respective successors and assigns or
in transit to any of them. ANY AND ALL RIGHTS TO REQUIRE ANY OF THE LENDERS OR
AGENT, ANY OF THEIR AFFILIATES OR ANY PARTICIPANT IN THE LOANS TO EXERCISE
THEIR RESPECTIVE RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH
SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SET-OFF WITH RESPECT
TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWERS ARE HEREBY KNOWINGLY,
VOLUNTARILY AND IRREVOCABLY WAIVED.

12.11.  CONSTRUCTION

Each party to a Loan Document represents that it has been represented by
counsel in connection with the Loan Documents and the transactions contemplated
thereby and that the principle that agreements are to be construed against the
party drafting the same shall be inapplicable.

80

 

12.12.  GOVERNING LAW

The Loan Documents and the rights and obligations of the parties thereunder
shall be governed by, and construed and interpreted in accordance with, the
internal laws of the State of New York, without regard to principles of
conflict of laws.

12.13.  JUDGMENT CURRENCY

         (a)      Conversion of Judgment Currency. Each Borrower’s obligations under
the Loan Documents to make payments in the applicable Currency (the “Obligation
Currency”) shall not be discharged or satisfied by any tender or recovery
pursuant to any judgment expressed in or converted into any currency other than
the Obligation Currency, except to the extent that, on the Business Day
immediately following the date of such tender or recovery, Agent or the
applicable Lender, as the case may be, may, in accordance with normal banking
procedures, purchase the Obligation Currency with such other currency. If for
the purpose of obtaining or enforcing judgment against any Borrower in any
court or in any jurisdiction, it becomes necessary to convert into any currency
other than the Obligation Currency (such other currency being hereinafter
referred to as the “Judgment Currency”) an amount due in the Obligation
Currency, the conversion shall be made at the rate of exchange at which, in
accordance with normal banking procedures in the relevant jurisdiction, the
Obligation Currency could be purchased with the Judgment Currency as of the day
immediately preceding the day on which the judgment is given (such Business Day
being hereinafter referred to as the “Judgment Currency Conversion Date”).

         (b)      Indemnification. If the amount of Obligation Currency purchased
pursuant to the last sentence of Section 12.13(a) is less than the sum
originally due in the Obligation Currency, the applicable Borrower covenants
and agrees to indemnify the applicable recipient against such loss, and if the
Obligation Currency so purchased exceeds the sum originally due to such
recipient, such recipient agrees to remit to the applicable Borrower such
excess.

12.14.  INTERNATIONAL BANKING FACILITIES

         (a)      Utilization of International Banking Facility by Lenders. Borrowers
acknowledge that some or all of the Lenders may, in connection with the Loan
Documents, utilize an International banking facility (as defined in Regulation
D).

         (b)      Use of Proceeds from International Banking Facility. Each Borrower
which is an entity located outside the United States (i) understands that it is
the policy of the Board of Governors of the Federal Reserve System that
deposits received by International banking facilities may be used only to
support the non-U.S. operations of a depositor (or its foreign affiliates)
located outside the United States and that extensions of credit by
International banking facilities may be used only to finance the non-U.S.
operations of a customer (or its foreign affiliates) located outside the United
States, and (ii) acknowledges that the proceeds of its borrowings hereunder
from an international banking facility will be used solely to finance its
operations outside the United States, or that of its foreign affiliates.

81

 

12.15.  HEADINGS DESCRIPTIVE

Section headings have been inserted in the Loan Documents for convenience only
and shall not be construed to be a part thereof.

12.16.  SEVERABILITY

Every provision of the Loan Documents is intended to be severable, and if any
term or provision thereof shall be invalid, illegal or unenforceable for any
reason, the validity, legality and enforceability of the remaining provisions
thereof shall not be affected or impaired thereby, and any invalidity,
illegality or unenforceability in any jurisdiction shall not affect the
validity, legality or enforceability of any such term or provision in any other
jurisdiction.

12.17.  INTEGRATION

All exhibits to a Loan Document shall be deemed to be a part thereof. Except
for agreements between the Agent and Parent Borrower with respect to certain
fees, the Loan Documents embody the entire agreement and understanding among
Borrowers, the Agent and the Lenders with respect to the subject matter thereof
and supersede all prior agreements and understandings among Borrowers, the
Agent and the Lenders with respect to the subject matter thereof.

12.18.  CONSENT TO JURISDICTION

EACH PARTY TO A LOAN DOCUMENT HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF
ANY NEW YORK STATE OR FEDERAL COURT SITTING IN THE CITY OF NEW YORK OVER ANY
SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE LOAN DOCUMENTS.
EACH PARTY TO A LOAN DOCUMENT HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED OR NOT PROHIBITED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT
IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT
IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH BORROWER HEREBY
AGREES THAT A FINAL JUDGMENT IN ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN
SUCH A COURT, AFTER ALL APPROPRIATE APPEALS, SHALL BE CONCLUSIVE AND BINDING
UPON IT.

12.19.  SERVICE OF PROCESS

Each party to a Loan Document hereby irrevocably consents to the service of
process in any suit, action or proceeding by sending the same by first class
mail, return receipt requested or by overnight courier service, to the address
of such party set forth in Section 12.2 or in the applicable Loan Document
executed by such party. Each party to a Loan Document hereby agrees that any
such service (a) shall be deemed in every respect effective service of process
upon it in any such suit, action, or proceeding, and (b) shall to the fullest
extent enforceable by law, be taken and held to be valid personal service upon
and personal delivery to it.

82

 

12.20.  NO LIMITATION ON SERVICE OR SUIT

Nothing in the Loan Documents or any modification, waiver, consent or amendment
thereto shall affect the right of Agent or any Lender to serve process in any
manner permitted by law or limit the right of Agent or any Lender to bring
proceedings against any Credit Party in the courts of any jurisdiction or
jurisdictions in which such Credit Party may be served

12.21.  WAIVER OF TRIAL BY JURY

THE AGENT AND EACH OF THE LENDERS AND BORROWERS HEREBY KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVE ANY AND ALL RIGHTS THAT THEY MAY NOW OR HEREAFTER HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED HEREON, ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS AGREEMENT, ANY OF THE OTHER LOAN DOCUMENTS
CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS
(WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING, WITHOUT
LIMITATION, ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS OR ACTIONS
RELATING TO THE ADMINISTRATION OF THE LOAN FACILITY UNDER THIS AGREEMENT OR
ENFORCEMENT OF THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS, AND (ii) AGREE THAT
NONE OF THE BORROWERS, ANY LENDER OR THE AGENT WILL SEEK TO CONSOLIDATE ANY
SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT
BEEN WAIVED. EXCEPT AS PROHIBITED BY APPLICABLE LAW, EACH BORROWER HEREBY
WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION ANY SPECIAL,
EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN
ADDITION TO, ACTUAL DAMAGES. EACH BORROWER HEREBY CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF THE AGENT OR ANY LENDER HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT THE AGENT OR THE LENDERS WOULD NOT, IN THE EVENT
OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS. THIS WAIVER CONSTITUTES
A MATERIAL INDUCEMENT FOR THE AGENT AND THE LENDERS TO ENTER INTO THIS
AGREEMENT AND FOR THE LENDERS TO MAKE LOANS AVAILABLE TO THE BORROWERS. IT IS
INTENDED THAT SAID WAIVERS SHALL APPLY TO ANY AND ALL DEFENSES, RIGHTS, AND/OR
COUNTERCLAIMS IN ANY ACTION OR PROCEEDING.

12.22.  EFFECTIVE DATE

This Agreement shall be effective at such time (the “Effective Date”) as (a)
executed counterparts hereof shall have been delivered to the Agent by Parent
Borrower and each Lender and the Agent shall have executed and delivered a
counterpart hereof to Parent Borrower and each Lender, and (b) all fees payable
to the Agent and the Lenders in connection herewith on or prior to the
Effective Date shall have been paid.

83

 

12.23.  TREATMENT OF CERTAIN INFORMATION

The Agent and each of the Lenders agrees to use reasonable precautions to keep
confidential, in accordance with its customary procedures for handling
confidential information of the same nature, all non-public information (a)
provided to it by or on behalf Parent Borrower or any of its Subsidiaries
pursuant to or in connection with any Loan Document or (b) obtained by it based
on a review of the books and records of Parent Borrower or any of its
Subsidiaries; provided, however, that nothing herein shall limit the disclosure
of any such information (c) to the extent required by statute, rule, regulation
or judicial process, (d) on a confidential basis, to counsel for any of the
Lenders or of the Agent, (e) to bank examiners, auditors or accountants, and
any analogous counterpart thereof, (f) to Agent or any Lender, (g) in
connection with any litigation to which any one or more of the Lenders or the
Agent is a party, (h) to any assignee or participant (or prospective assignee
or participant) so long as such assignee or participant (or prospective
assignee or participant) agrees to keep such information confidential on
substantially the same basis as set forth in this Section, or (i) to affiliates
of Agent or any Lender.

12.24.  PARENT BORROWER AS AGENT FOR SUBSIDIARY BORROWERS

Each Subsidiary Borrower hereby irrevocably designates and appoints the Parent
Borrower as its agent under the Loan Documents and such Subsidiary Borrower
hereby irrevocably authorizes the Parent Borrower to take such action on its
behalf under the provisions of the Loan Documents and to exercise such powers
and perform such duties as are expressly delegated to the Parent Borrower by
the terms of the Loan Documents, together with such other powers as are
reasonably incidental thereto.

12.25.  OPINION OF LOCAL COUNSEL WITH RESPECT TO INITIAL GUARANTOR  SUBSIDIARIES.

Within thirty (30) days of the Effective Date, Parent Borrower shall deliver
opinions of local counsel in Georgia, Massachusetts, Arizona and Ohio
(reasonably satisfactory to the Agent in all respects) with respect to the
Guarantor Subsidiaries incorporated within said states.

84

 

IN WITNESS WHEREOF, the parties hereto have caused this Credit Agreement to be
duly executed and delivered by their proper and duly authorized officers as of
the day and year first above written.

	 	 	 
	 	 	
BOWNE & CO., INC
	
	
	
	

	
	
	
	

	
	
	
	

	 	 	
By: /s/ C. CODY COLQUITT
	 	 	
Name: C. Cody Colquitt
	 	 	
Title: Senior Vice President and
Chief Financial Officer
	
	
	
	

	
	
	
	

	
	
	
	

	 	 	
FLEET NATIONAL BANK,
	 	 	
as a Lender and as Agent
	
	
	
	

	
	
	
	

	
	
	
	

	 	 	
By: /s/ JOHN T. HARRISON
	 	 	
Name: John T. Harrison
	 	 	
Title: Senior Vice President
	
	
	
	

	
	
	
	

	
	
	
	

	  	 	
JPMORGAN CHASE BANK, 
	  	 	
as a Lender and
as Documentation Agent
	
	
	
	

	
	
	
	

	
	
	
	

	 	 	
By: /s/ LOUIS MASTRIANNI 
	 	 	
Name: Louis Mastrianni
	 	 	
Title: Vice President
	
	
	
	

	
	
	
	

	
	
	
	

	 	 	
WACHOVIA BANK, NATIONAL ASSOCIATION,
	 	 	
as a Lender and
as Syndication Agent
	
	
	
	

	
	
	
	

	
	
	
	

	 	 	
By: /s/ KARIN E. SAMUEL 
	 	 	
Name: Karin E. Samuel
	 	 	
Title: Vice President
	
	
	
	

	
	
	
	

	
	
	
	

	  	 	
HSBC BANK USA, as a Lender
	
	
	
	

	
	
	
	

	
	
	
	

	 	 	
By: /s/ BRUCE WICKS 
	 	 	
Name: Bruce Wicks
	 	 	
Title: Vice President

85

 

	 	 	 
	
	
	
	

	 	 	
THE ROYAL BANK OF SCOTLAND PLC, as a Lender
	
	
	
	

	
	
	
	

	
	
	
	

	 	 	
By: /s/ JULIAN DAKIN
	 	 	
Name: Julian Dakin
	 	 	
Title: Senior Vice President
	
	
	
	

	
	
	
	

	
	
	
	

	 	 	
FIRSTAR BANK, N.A., as a Lender
	
	
	
	

	
	
	
	

	
	
	
	

	 	 	
By: /s/ RICHARD NELTNER 
	 	 	
Name: Richard Neltner
	 	 	
Title: Senior Vice President
	
	
	
	

	
	
	
	

	
	
	
	

	 	 	
THE BANK OF NEW YORK, as a Lender
	
	
	
	

	
	
	
	

	
	
	
	

	 	 	
By: /s/ JAMES J. DUCEY
	 	 	
Name: James J. Ducey
	 	 	
Title: Vice President

86

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]