Document:

Exhibit 10.1

 

 

CREDIT AGREEMENT

 

Among

 

THE DAYTON POWER AND LIGHT
COMPANY

as Borrower

 

THE LENDING INSTITUTIONS NAMED
THEREIN

as Lenders

 

And

 

KEYBANK NATIONAL ASSOCIATION

as the Administrative Agent and

Lead Arranger

 

 

 

dated as of

May 31, 2005

 

 

$100,000,000 Revolving Facility

 

 

 

	
  ARTICLE I.

  	
  DEFINITIONS AND TERMS

  	
   

  
	
  Section 1.1

  	
  Certain
  Defined Terms

  	
   

  
	
  Section 1.2

  	
  Computation of Time Periods

  	
   

  
	
  Section 1.3

  	
  Accounting Terms

  	
   

  
	
  Section 1.4

  	
  Terms Generally

  	
   

  
	
  ARTICLE II.

  	
  AMOUNT
  AND TERMS OF LOANS

  	
   

  
	
  Section 2.1

  	
  Commitments
  for Loans

  	
   

  
	
  Section 2.2

  	
  Borrowing,
  Continuation or Conversion of Loans

  	
   

  
	
  Section 2.3

  	
  Disbursement of Funds

  	
   

  
	
  Section 2.4

  	
  Evidence of Obligations

  	
   

  
	
  Section 2.5

  	
  Interest

  	
   

  
	
  Section 2.6

  	
  Increased Costs; Illegality

  	
   

  
	
  Section 2.7

  	
  Breakage Compensation

  	
   

  
	
  Section 2.8

  	
  Change of Lending Office;
  Replacement of Lenders

  	
   

  
	
  ARTICLE III.

  	
  FEES;
  COMMITMENTS; extension of maturity

  	
   

  
	
  Section 3.1

  	
  Fees

  	
   

  
	
  Section 3.2

  	
  Increase in Commitments

  	
   

  
	
  Section 3.3

  	
  Voluntary Termination/Reduction of
  Commitments

  	
   

  
	
  Section 3.4

  	
  Termination of Commitments

  	
   

  
	
  Section 3.5

  	
  Extension Request..

  	
   

  
	
  ARTICLE IV.

  	
  PAYMENTS

  	
   

  
	
  Section 4.1

  	
  Repayment of Loans

  	
   

  
	
  Section 4.2

  	
  Voluntary Prepayments

  	
   

  
	
  Section 4.3

  	
  Mandatory Payments and
  Prepayments

  	
   

  
	
  Section 4.4

  	
  Method and Place of Payment

  	
   

  
	
  Section 4.5

  	
  Net Payments

  	
   

  
	
  ARTICLE V.

  	
  CONDITIONS
  PRECEDENT

  	
   

  
	
  Section 5.1

  	
  Conditions Precedent at Closing Date

  	
   

  
	
  Section 5.2

  	
  Conditions Precedent to the Making
  of Loans

  	
   

  
	
  Section 5.3

  	
  Conditions
  Precedent to the Conversion or Continuation of Loans

  	
   

  
	
  ARTICLE VI.

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  
	
  Section 6.1

  	
  Corporate
  Status

  	
   

  
	
  Section 6.2

  	
  Corporate
  Power and Authority

  	
   

  
	
  Section 6.3

  	
  No
  Violation

  	
   

  
	
  Section 6.4

  	
  Governmental Approvals

  	
   

  
				

 

 

	
  Section 6.5

  	
  Litigation, etc

  	
   

  
	
  Section 6.6

  	
  Use of Proceeds; Margin Regulations

  	
   

  
	
  Section 6.7

  	
  Financial Statements

  	
   

  
	
  Section 6.8

  	
  Solvency

  	
   

  
	
  Section 6.9

  	
  No Material Adverse Change

  	
   

  
	
  Section 6.10

  	
  Tax Returns and Payments

  	
   

  
	
  Section 6.11

  	
  Title to Properties

  	
   

  
	
  Section 6.12

  	
  Lawful Operations; Compliance
  with Agreements

  	
   

  
	
  Section 6.13

  	
  Environmental Matters

  	
   

  
	
  Section 6.14

  	
  ERISA

  	
   

  
	
  Section 6.15

  	
  Intellectual
  Property

  	
   

  
	
  Section 6.16

  	
  Investment
  Company Act; Federal Power Act; PUHCA

  	
   

  
	
  Section 6.17

  	
  True
  and Complete Disclosure

  	
   

  
	
  ARTICLE VII.

  	
  AFFIRMATIVE
  COVENANTS

  	
   

  
	
  Section 7.1

  	
  Reporting
  Requirements

  	
   

  
	
  Section 7.2

  	
  Books,
  Records and Inspections

  	
   

  
	
  Section 7.3

  	
  Insurance

  	
   

  
	
  Section 7.4

  	
  Payment
  of Taxes and Claims

  	
   

  
	
  Section 7.5

  	
  Preservation
  of Existence, etc

  	
   

  
	
  Section 7.6

  	
  Good
  Repair

  	
   

  
	
  Section 7.7

  	
  Compliance
  with Statutes, Regulations, Orders, Restrictions

  	
   

  
	
  Section 7.8

  	
  Fiscal
  Years, Fiscal Quarters

  	
   

  
	
  Section 7.9

  	
  Use
  of Proceeds

  	
   

  
	
  Section 7.10

  	
  Senior
  Debt

  	
   

  
	
  ARTICLE VIII.

  	
  NEGATIVE
  COVENANTS

  	
   

  
	
  Section 8.1

  	
  Changes
  in Business

  	
   

  
	
  Section 8.2

  	
  Merger,
  Consolidation, Asset Sales

  	
   

  
	
  Section 8.3

  	
  Liens

  	
   

  
	
  Section 8.4

  	
  Investments

  	
   

  
	
  Section 8.5

  	
  Financial
  Covenant

  	
   

  
	
  Section 8.6

  	
  Transactions
  with Affiliates

  	
   

  
	
  Section 8.7

  	
  Material
  Agreements

  	
   

  
	
  Section 8.8

  	
  Use
  of Proceeds/Margin Regulations

  	
   

  
	
  Section 8.9

  	
  No
  Dividend Restrictions

  	
   

  
	
  Section 8.10

  	
  Swap
  Agreements

  	
   

  
				

 

 

	
  ARTICLE IX.

  	
  EVENTS
  OF DEFAULT

  	
   

  
	
  Section 9.1

  	
  Events
  of Default

  	
   

  
	
  Section 9.2

  	
  Acceleration;
  Remedies

  	
   

  
	
  Section 9.3

  	
  Application
  of Liquidation Proceeds

  	
   

  
	
  ARTICLE X.

  	
  THE
  ADMINISTRATIVE AGENT

  	
   

  
	
  Section 10.1

  	
  Appointment

  	
   

  
	
  Section 10.2

  	
  Delegation
  of Duties

  	
   

  
	
  Section 10.3

  	
  Exculpatory
  Provisions

  	
   

  
	
  Section 10.4

  	
  Reliance
  by Administrative Agent

  	
   

  
	
  Section 10.5

  	
  Notice
  of Default

  	
   

  
	
  Section 10.6

  	
  Non-Reliance

  	
   

  
	
  Section 10.7

  	
  Indemnification

  	
   

  
	
  Section 10.8

  	
  The
  Administrative Agent in Individual Capacity

  	
   

  
	
  Section 10.9

  	
  Successor
  Administrative Agent

  	
   

  
	
  Section 10.10

  	
  Other Agents

  	
   

  
	
  ARTICLE XI.

  	
  MISCELLANEOUS

  	
   

  
	
  Section 11.1

  	
  Payment
  of Expenses

  	
   

  
	
  Section 11.2

  	
  Right
  of Setoff

  	
   

  
	
  Section 11.3

  	
  Notices

  	
   

  
	
  Section 11.4

  	
  Benefit
  of Agreement

  	
   

  
	
  Section 11.5

  	
  No
  Waiver; Remedies Cumulative

  	
   

  
	
  Section 11.6

  	
  Payments
  Pro Rata; Sharing of Setoffs

  	
   

  
	
  Section 11.7

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

  	
   

  
	
  Section 11.8

  	
  Counterparts

  	
   

  
	
  Section 11.9

  	
  Integration

  	
   

  
	
  Section 11.10

  	
  Headings Descriptive

  	
   

  
	
  Section 11.11

  	
  Amendment or Waiver

  	
   

  
	
  Section 11.12

  	
  Survival of Indemnities

  	
   

  
	
  Section 11.13

  	
  Domicile of Loans

  	
   

  
	
  Section 11.14

  	
  Confidentiality

  	
   

  
	
  Section 11.15

  	
  Lender Register

  	
   

  
	
  Section 11.16

  	
  General Limitation of Liability

  	
   

  
	
  Section 11.17

  	
  No Duty

  	
   

  
	
  Section 11.18

  	
  Lenders and Agent Not Fiduciary
  to Borrower

  	
   

  
	
  Section 11.19

  	
  Survival of Representations
  and Warranties

  	
   

  
				

 

 

	
  Section 11.20

  	
  Severability

  	
   

  
	
  Section 11.21

  	
  Independence of Covenants

  	
   

  
	
  Section 11.22

  	
  Interest Rate Limitation

  	
   

  
	
  Section 11.23

  	
  Treasury Regulations

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
  Revolving Note

  	
   

  
	
  Exhibit B

  	
  -

  	
  Notice of Borrowing, Continuation or
  Conversion

  	
   

  
	
  Exhibit C

  	
  -

  	
  Compliance Certificate

  	
   

  
	
  Exhibit D

  	
  -

  	
  Closing Certificate

  	
   

  
	
  Exhibit E

  	
  -

  	
  Assignment Agreement

  	
   

  
	
  Exhibit F

  	
  -

  	
  Legal Opinion of General Counsel of the
  Borrower

  	
   

  
	
  Exhibit G

  	
  -

  	
  Extension Request

  	
   

  
					

 

 

This CREDIT AGREEMENT,
dated as of May 31, 2005, is entered into by and among the following:

 

(i)            THE DAYTON POWER AND LIGHT COMPANY, an
Ohio corporation (the “Borrower”);

 

(ii)           the Lenders, defined below, from time to
time party hereto; and

 

(iii)          KEYBANK NATIONAL ASSOCIATION, a national
banking association, as the Administrative Agent, defined below, and Lead
Arranger.

 

RECITALS:

 

A.            The Borrower has applied to the Lenders
for a credit facility to replace its existing senior debt facility and to
provide working capital and funds for other lawful purposes.

 

B.            Subject to and upon the terms and
conditions set forth herein, the Lenders are willing to make available to the
Borrower the credit facility provided for herein.

 

AGREEMENT:

 

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

 

ARTICLE I.

 

DEFINITIONS AND TERMS

 

Section 1.1             Certain Defined Terms. 
As used herein, the following terms shall have the meanings herein
specified unless the context otherwise requires:

 

“Acquisition”
means any acquisition (a) on a going concern basis (whether by purchase,
lease or otherwise) of assets constituting a business or a division or line of
business of a Person that is not a Subsidiary of the Borrower, and (b) of
a majority of the outstanding equity or other similar interests in any such
Person (whether by merger, stock purchase or otherwise).

 

“Adjusted Eurodollar
Rate” means, with respect to each Interest Period for a Eurodollar Loan, (a) the
rate per annum appearing on the applicable electronic page of Reuters or
any successor to or substitute for such service, providing rate quotations
comparable to those currently provided by such service, as determined by the
Administrative Agent from time to time for purposes of providing quotations of
interest rates applicable to Dollar deposits in the London interbank market),
at approximately 11:00 a.m. (London time) two Business Days prior to the
commencement of such Interest Period, as the rate for Dollar deposits with a
maturity comparable to such Interest Period, divided (and rounded to the
nearest one one hundredth of 1%) by (b) a percentage equal to 100% minus
the then stated maximum rate of all reserve requirements (including, without
limitation, any marginal, emergency, supplemental, special or other reserves
and without benefit of credits for proration, exceptions or offsets that may be
available from time to time) applicable to any member bank of the Federal
Reserve System in respect of Eurocurrency liabilities as defined in Regulation
D (or any successor category of liabilities under Regulation D); provided, however, that if the rate referred to in clause (a) above
is not available at any such time for any reason, then the rate referred to in
clause (a) shall instead be the average (rounded to the nearest one one
hundredth of 1%) of the rates at which Dollar deposits of $5,000,000 are
offered to the Reference Banks in the London interbank market at approximately
11:00 a.m. (London time), two

 

 

Business Days
prior to the commencement of such Interest Period, for contracts that would be
entered into at the commencement of such Interest Period.

 

“Administrative Agent”
means KeyBank in its capacity as administrative agent for the Lenders, together
with any successor to the Administrative Agent appointed pursuant to Section 10.9.

 

“Affiliate” means,
with respect to any Person, any other Person directly or indirectly
controlling, controlled by, or under direct or indirect common control with
such Person, or, in the case of any Lender that is an investment fund, the
investment advisor thereof and any investment fund having the same investment
advisor.  A Person shall be deemed to
control a second Person if such first Person possesses, directly or indirectly,
the power (a) to vote 10% or more of the securities having ordinary voting
power for the election of directors or managers of such second Person or (b) to
direct or cause the direction of the management and policies of such second
Person, whether through the ownership of voting securities, by contract or
otherwise.  Notwithstanding the
foregoing, (i) a director, officer or employee of a Person shall not,
solely by reason of such status, be considered an Affiliate of such Person; and
(ii) neither the Administrative Agent nor any Lender shall in any event be
considered an Affiliate of the Borrower or any of its Subsidiaries.

 

“Agent Fee Letter”
means the Agent Fee Letter, dated as of the date hereof, between the
Administrative Agent and the Borrower, as the same may from time to time be
amended, restated, supplemented or otherwise modified.

 

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

 

“Applicable Facility
Fee Rate” means, on any date of determination, a rate that is determined
based upon the S&P Rating, the Moody’s Rating or the Fitch Rating, as
follows:

 

	
  S&P Rating

  	
   

  	
  Moody’s Rating

  	
   

  	
  Fitch Rating

  	
   

  	
  Applicable Facility

  Fee Rate

  
	
  A- or higher

  	
   

  	
  A3 or higher

  	
   

  	
  A- or higher

  	
   

  	
  10.00 basis
  points

  
	
  BBB+

  	
   

  	
  Baa1

  	
   

  	
  BBB+

  	
   

  	
  12.50 basis
  points

  
	
  BBB

  	
   

  	
  Baa2

  	
   

  	
  BBB

  	
   

  	
  15.00 basis
  points

  
	
  BBB–

  	
   

  	
  Baa3

  	
   

  	
  BBB–

  	
   

  	
  17.50 basis
  points

  
	
  BB+

  	
   

  	
  Ba1

  	
   

  	
  BB+

  	
   

  	
  20.00 basis
  points

  
	
  Lower than
  BB+

  	
   

  	
  Lower than
  Ba1

  	
   

  	
  Lower than
  BB+

  	
   

  	
  25.00 basis
  points

  

 

If at any time each
Rating Agency issues a different rating, then the Applicable Facility Fee Rate
shall be determined based on the intermediate rating at such time.  If at any time two Rating Agencies issue the
same rating, which is different than the other Rating Agency, the rating issued
by such other Rating Agency shall be disregarded, and the Applicable Facility
Fee Rate shall be determined based on the two identical ratings at such
time.  If there is no S&P Rating or
Fitch Rating, then the Applicable Facility Fee Rate shall be determined based
on the Moody’s Rating.  If there is no
Moody’s Rating or Fitch Rating, then the Applicable Facility Fee Rate shall be
determined based on the S&P Rating. 
If there is no Moody’s Rating or S&P Rating, then the Applicable
Facility Fee Rate shall be determined based on the Fitch Rating.  If at any time only two Rating Agencies issue
a rating and there is a difference of two or more rating levels between such
Rating Agencies, then the Applicable Facility Fee Rate shall
be

 

 

determined based
on the intermediate rating levels at the midpoint between the ratings issued by
such Rating Agencies at such time or, if there is no midpoint, based on the
higher intermediate level.  If (i) there
is no S&P Rating, Moody’s Rating and Fitch Rating or (ii) an Event of
Default has occurred and is continuing, the Applicable Facility Fee Rate shall
be the highest rate per annum indicated therefor in the above table.  The S&P Rating, Moody’s Rating and Fitch
Rating in effect on any date for purposes of determining the Applicable
Facility Fee Rate shall be that S&P Rating, Moody’s Rating and Fitch Rating
in effect at the close of business on such date.  Each change in the Applicable Facility Fee
Rate resulting from a publicly announced change in the S&P Rating, the
Fitch Rating and/or the Moody’s Rating shall be effective during the period
commencing on the date of the public announcement thereof and ending on the
date immediately preceding the effective date of the next change.

 

“Applicable Lending
Office” means, with respect to each Lender, the office or offices
designated by such Lender to the Administrative Agent as such Lender’s lending
office or offices for purposes of this Agreement.

 

“Applicable Margin”
means, on any date of determination, a rate that is determined, based upon the
S&P Rating, the Moody’s Rating or the Fitch Rating, as follows:

 

	
  S&P Rating

  	
   

  	
  Moody’s Rating

  	
   

  	
  Fitch Rating

  	
   

  	
  Applicable Margin for

  Eurodollar Loans

  	
   

  	
  Applicable Margin

  for Base Rate Loans

  
	
  A- or higher

  	
   

  	
  A3 or higher

  	
   

  	
  A- or higher

  	
   

  	
  27.50 basis
  points

  	
   

  	
  0.0 basis
  points

  
	
  BBB+

  	
   

  	
  Baa1

  	
   

  	
  BBB+

  	
   

  	
  35.00 basis
  points

  	
   

  	
  0.0 basis
  points

  
	
  BBB

  	
   

  	
  Baa2

  	
   

  	
  BBB

  	
   

  	
  42.50 basis
  points

  	
   

  	
  0.0 basis
  points

  
	
  BBB–

  	
   

  	
  Baa3

  	
   

  	
  BBB–

  	
   

  	
  57.50 basis
  points

  	
   

  	
  0.0 basis
  points

  
	
  BB+

  	
   

  	
  Ba1

  	
   

  	
  BB+

  	
   

  	
  80.00 basis
  points

  	
   

  	
  0.0 basis
  points

  
	
  Lower than
  BB+

  	
   

  	
  Lower than
  Ba1

  	
   

  	
  Lower than
  BB+

  	
   

  	
  100.00 basis
  points

  	
   

  	
  0.0 basis
  points

  

 

If at any time each
Rating Agency issues a different rating, then the Applicable Margin shall be
determined based on the intermediate rating at such time.  If at any time two Rating Agencies issue the
same rating, which is different than the other Rating Agency, the rating issued
by such other Rating Agency shall be disregarded, and the Applicable Margin
shall be determined based on the two identical ratings at such time.  If there is no S&P Rating or Fitch
Rating, then the Applicable Margin shall be determined based on the Moody’s
Rating.  If there is no Moody’s Rating or
Fitch Rating, then the Applicable Margin shall be determined based on the
S&P Rating.  If there is no Moody’s
Rating or S&P Rating, then the Applicable Margin shall be determined based
on the Fitch Rating.  If at any time only
two Rating Agencies issue a rating and there is a difference of two or more
rating levels between such Rating Agencies, then the Applicable Margin shall be
determined based on the intermediate rating levels at the midpoint between the
ratings issued by such Rating Agencies at such time or, if there is no
midpoint, based on the higher intermediate level.  If (i) there is no S&P Rating, Moody’s
Rating or Fitch Rating or (ii) an Event of Default has occurred and is
continuing, the Applicable Margin shall be the highest rate per annum indicated
therefor in the above table.  The S&P
Rating, Moody’s Rating and Fitch Rating in effect on any date for purposes of
determining the Applicable Margin shall be that S&P Rating, Moody’s Rating
and Fitch Rating in effect at the close of business on such date.  Each change in the Applicable Margin
resulting from a publicly announced change in the S&P Rating, the Fitch Rating
and/or the Moody’s Rating shall be effective during the period commencing on
the date of the public

 

 

announcement
thereof and ending on the date immediately preceding the effective date of the
next change.

 

“Approved Fund”
means a fund that is administered or managed by a Lender or an Affiliate of a
Lender.

 

“Asset Sale” means
the sale, transfer or other disposition (including by means of Sale and
Lease-Back Transactions, and by means of mergers, consolidations, and
liquidations of a corporation, partnership or limited liability company of the
interests therein of the Borrower or any of its Subsidiaries) by the Borrower
or any of its Subsidiaries to any Person of any of their respective assets, provided that the term Asset Sale specifically excludes any
sales, transfers or other dispositions of inventory, or obsolete or excess
furniture, fixtures, equipment or other Property, real or personal, tangible or
intangible, in each case in the ordinary course of business.

 

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

 

“Augmenting Lender”
has the meaning provided in Section 3.2(a).

 

“Authorized Officer”
means any of the following officers of the Borrower: the Chief Executive
Officer, the Chief Financial Officer, the President, the Executive Vice
President and Chief Operating Officer, any Group Vice President or any Vice
President or the Treasurer.

 

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

 

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

 

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

 

“Borrower” has the
meaning provided in the first paragraph of this Agreement.

 

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

 

“Business Day”
means, (a) for all purposes other than as covered by clause (b) below,
any day that is not a Saturday, Sunday or day on which commercial banks in the
city in which the Payment Office is located are authorized or required by law
or other governmental actions to close and (b) with respect to all notices
and determinations in connection with, and payments of principal and interest
on, Eurodollar Loans, any day that is a Business Day described in clause (a) and
that is also a day for trading by and between banks in Dollar deposits in the
London interbank market.

 

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

 

 

“Capitalized Lease
Obligations” means all obligations under Capital Leases of the Borrower or
any of its Subsidiaries in each case taken at the amount thereof accounted for
as liabilities and identified as “capital lease obligations” (or any similar
words) on a consolidated balance sheet of the Borrower and its Subsidiaries
prepared in accordance with GAAP.

 

“Cash Equivalents”
means any of the following:

 

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

 

(b)           Dollar denominated time deposits,
certificates of deposit and bankers’ acceptances of (i) any Lender or (ii) any
bank whose short-term commercial paper rating from S&P is at least A-1
or the equivalent thereof or from Moody’s is at least P-1 or the
equivalent thereof (any such bank, an “Approved Bank”), in each case
with maturities of not more than three months from the date of acquisition;

 

(c)           commercial paper issued by any Lender or
Approved Bank or by the parent company of any Lender or Approved Bank and
commercial paper issued by, or guaranteed by, any industrial or financial
company with a short- term commercial paper rating of at least A-1 or the
equivalent thereof by S&P or at least P-1 or the equivalent thereof
by Moody’s, or guaranteed by any industrial company with a long term unsecured
debt rating of at least A or A2, or the equivalent of each thereof, from
S&P or Moody’s, as the case may be, and in each case maturing within 90
days after the date of acquisition;

 

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

 

(e)           investments in money market funds
substantially all the assets of which are comprised of securities of the types
described in clauses (a) through (d) above;

 

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

 

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

 

(h)           investments in pooled funds or investment
accounts consisting of investments of the nature described in the foregoing
clause (g); and

 

(i)            other investments not specifically
described in any of clauses (a) through (h) above that have been
approved in writing by the Administrative Agent.

 

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

 

 

“Change of Control”
means any of the following:

 

(a)           during any 12-month period (or, if
less, during the period beginning on the Closing Date and ending on the date of
determination), individuals who at the beginning of such period constituted the
Parent’s Board of Directors (together with any
new directors whose election by the Parent’s Board of Directors or whose
nomination for election by the Parent’s shareholders
was approved by a vote of a majority of the directors who either were directors
at the beginning of such period or whose election or nomination was previously
so approved) cease for any reason to constitute a majority of the Board of
Directors of the Parent;

 

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

 

(c)           the Parent shall cease to own, free and
clear of all Liens and other encumbrances and on a fully diluted basis, 100% of
the outstanding shares of all classes of stock of the Borrower ordinarily
having the right to vote at an election of directors, or any contingency shall
occur that causes any class of stock of the Borrower, the shares of which are
not owned by the Parent, to have the right to vote at an election of directors.

 

“Closing Date”
means the date on which the conditions specified in Section 5.1 are
satisfied.

 

“Closing Fee Letter”
means the Closing Fee Letter, dated as of the date hereof, between the Borrower
and the Administrative Agent, for the benefit of the Lenders, as the same may
from time to time be amended, restated, supplemented or otherwise modified.

 

“Code” means the
Internal Revenue Code of 1986, as amended from time to time, and the
regulations promulgated thereunder.

 

“Commitment”
means, with respect to each Lender, its obligation to make Loans to the
Borrower from time to time pursuant to Section 2.1, in an aggregate
principal amount at any one time outstanding not to exceed the amount, if any,
set forth opposite such Lender’s name on Annex I as its “Commitment”
or in the case of any Lender that becomes a party hereto pursuant to an
Assignment Agreement, the obligation of such Lender to make Loans in an
aggregate principal amount at any one time outstanding not to exceed the amount
set forth as the “Amount of Assigned Share” in each Assignment Agreement to
which such Lender is a party thereto as the assignee, as any such Commitments
may be reduced from time to time pursuant to Section 3.3, 3.4 and/or 9.2,
increased from time to time pursuant to Section 3.2, and/or adjusted from
time to time as a result of assignments to or from such Lender pursuant to Section 11.4.

 

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

 

 

“Consolidated Net
Income” means, for any period, the net income (or loss), without deduction
for minority interests, of the Borrower and its Subsidiaries on a consolidated
basis for such period taken as a single accounting period determined in
conformity with GAAP.

 

“Consolidated Net
Worth” means, at any time, all amounts that, in conformity with GAAP, would
be included under the caption “total stockholders’ equity” (or any like
caption) on a consolidated balance sheet of the Borrower as of such time, provided that in no event shall Consolidated Net Worth
include any amounts in respect of Redeemable Stock.

 

“Consolidated Tangible
Assets” means at any time the consolidated total assets of the Borrower and
its Subsidiaries calculated on a consolidated basis as of such time, but
excluding therefrom goodwill, patents, patent applications, permits,
trademarks, trade names, copyrights, licenses, franchises, experimental
expense, organizational expense, unamortized debt discount and expense, the
excess of cost of shares acquired over book value of related assets and such
other assets that are properly classified as “intangible assets” in accordance
with GAAP.

 

“Consolidated Total
Capitalization” means the sum of Consolidated Total Debt and Consolidated
Net Worth and, to the extent not otherwise
included, preferred stock of the Borrower.

 

“Consolidated Total
Debt” means the sum (without duplication) of all Indebtedness of the
Borrower and of each of its Subsidiaries, all as determined on a consolidated
basis.

 

“Continue”, “Continuation”
and “Continued” each refers to a continuation of Eurodollar Loans for an
additional Interest Period as provided in Section 2.2.

 

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

 

“Convert”, “Conversion”
and “Converted” each refers to a conversion of Loans of one Type into
Loans of another Type, pursuant to Section 2.2.

 

“Credit Documents”
means this Agreement, the Notes, if any, the Agent Fee Letter and the Closing
Fee Letter.

 

“Credit Event”
means any Borrowing, Conversion or Continuation.

 

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

 

“Defaulting Lender”
means any Lender with respect to which a Lender Default is in effect.

 

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

 

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

 

 

“Energy-Related
Business” means any business engaged in or directly related to:  (a) the production, sale, brokerage, management,
transportation, delivery or other provision of energy products, including but
not limited to, electricity, natural gas, oil, coal, propane and renewable
energy producing materials, (b) the provision of energy conservation
services, including, but not limited to, energy audits, installation of energy
conservation devices, energy efficient equipment and related systems, (c) the
provision of services and equipment in connection with the procurement of such
energy products or conservation of energy, (d) engineering, consulting,
construction, operational or maintenance services in connection with such
energy products, the conservation of energy or with equipment utilizing such
energy products or (e) the manufacturing of equipment used in connection
with energy production or conservation.

 

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

 

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

 

“ERISA” means the
Employee Retirement Income Security Act of 1974, as amended from time to time,
and the regulations promulgated thereunder.

 

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

 

“Event of Default”
has the meaning provided in Section 9.1.

 

“Exemption Certificate”
has the meaning provided in Section 4.5(b)(ii).

 

“Existing Credit
Agreement” means the Credit Agreement, dated as of June 1, 2004, among
the Borrower, the lenders party thereto, and KeyBank, as administrative agent.

 

“Extended Termination
Date” has the meaning provided in Section 3.5.

 

 

“Extension Request”
means an Extension Request in the form of Exhibit G, with blanks
appropriately completed in conformity with Section 3.5.

 

“Facility Fees”
has the meaning provided in Section 3.1(a).

 

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

 

“Fees” means all
amounts payable pursuant to, or referred to in, Section 3.1, together with
any other fees payable pursuant to this Agreement or any other Credit Document.

 

“Final Termination
Date” means May 30, 2010.

 

“Fitch” means
Fitch Investors Service Inc. and its successors.

 

“Fitch Rating”
means, on any date of determination, the rating accorded the Borrower’s senior
unsecured long-term debt by Fitch (or if the Obligations are secured, the
rating accorded to the Borrower’s senior secured long-term debt by Fitch).

 

“FPA” means the
Federal Power Act, as amended, and all rules and regulations promulgated
thereunder.

 

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

 

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

 

“Guaranty Obligations”
means as to any Person (without duplication) any obligation of such Person
guaranteeing any Indebtedness (“primary Indebtedness”) of any other
Person (the “primary obligor”) in any manner, whether directly or
indirectly, including, without limitation, any obligation of such Person,
whether or not contingent, (a) to purchase any such primary Indebtedness
or any Property constituting direct or indirect security therefor, (b) to
advance or supply funds (i) for the purchase or payment of any such
primary Indebtedness or (ii) to maintain working capital or equity capital
of the primary obligor or otherwise to maintain the net worth or solvency of
the primary obligor, (c) to purchase Property, securities or services
primarily for the purpose of assuring the owner of any such primary
Indebtedness of the ability of the primary obligor to make payment of such
primary Indebtedness, or (d) otherwise to assure or hold harmless the
owner of such primary Indebtedness against loss in respect thereof, provided, however, that the term Guaranty Obligation shall
not include endorsements of instruments for deposit or collection in the
ordinary course of business.  The amount
of any Guaranty Obligation shall be deemed to be an amount equal to the stated
or determinable amount of the primary Indebtedness in respect of which such Guaranty
Obligation is made or, if not stated or determinable, the maximum reasonably
anticipated liability in respect thereof (assuming such Person is required to
perform thereunder) as determined by such Person in good faith.

 

 

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

 

“Increasing Lender”
has the meaning provided in Section 3.2(a).

 

“Indebtedness”
means, with respect to any Person, all of the following (without duplication):

 

(a)           all indebtedness of such Person for
borrowed money;

 

(b)           all bonds, notes, debentures and similar
debt securities of such Person;

 

(c)           the deferred purchase price of capital
assets or services that in accordance with GAAP would be shown on the liability
side of the balance sheet of such Person;

 

(d)           non-contingent obligations to reimburse
any other Person in respect of amounts paid under a letter of credit or similar
instrument to the extent that such reimbursement obligations remain outstanding
after such obligations become non-contingent;

 

(e)           all obligations, contingent or otherwise,
of such Person in respect of bankers’ acceptances;

 

(f)            all Indebtedness of a second Person
secured by any Lien on any Property owned by such first Person, whether or not
such Indebtedness has been assumed;

 

(g)           all Capitalized Lease Obligations of such
Person;

 

(h)           the present value, determined on the
basis of the implicit interest rate, of all basic rental obligations under all
Synthetic Leases of such Person;

 

(i)            the full outstanding balance of trade
receivables, notes or other instruments sold with full recourse (and the
portion thereof subject to potential recourse, if sold with limited recourse),
other than in any such case any thereof sold solely for purposes of collection
of delinquent accounts;

 

(j)            the stated value, or liquidation value if
higher, of all Redeemable Stock of such Person; and

 

(k)           all Guaranty Obligations of such Person;

 

provided, however, that (i) neither trade payables
nor other similar accrued expenses, in each case arising in the ordinary course
of business, nor obligations in respect of insurance policies or performance or
surety bonds that themselves are not guarantees of Indebtedness (nor drafts,
acceptances or similar instruments evidencing the same nor obligations in
respect of letters of credit supporting the payment of

 

 

the same), shall
constitute Indebtedness; and (ii) the Indebtedness of any Person shall in
any event include (without duplication) the Indebtedness of any other entity
(including any general partnership in which such Person is a general partner)
to the extent such Person is liable thereon as a result of such Person’s
ownership interest in or other relationship with such entity, except to the
extent the terms of such Indebtedness provide expressly that such Person is not
liable thereon.

 

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

 

“Investment” means
(a) any direct or indirect purchase or other acquisition by the Borrower
or any of its Subsidiaries of any of the capital stock or other equity interest
of any other Person, including any partnership or joint venture interest in
such Person; (b) any loan or advance to, guarantee or assumption of debt
or purchase or other acquisition of any other debt (other than accounts
receivable arising in the ordinary course of business on terms customary in the
trade) of, any Person by the Borrower or any of its Subsidiaries; or (c) any
purchase or other acquisition (in one transaction or a series of transactions)
of assets of another Person that constitute a business unit or all or a
substantial part of the business of, such Person.

 

“KeyBank” means
KeyBank National Association, a national banking association, together with its
successors and assigns.

 

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

 

“Lenders” means
the Persons listed on Annex I and any other Person that becomes a
party hereto pursuant to an Assignment Agreement, other than any such Person
that ceases to be a party hereto pursuant to an Assignment Agreement.

 

“Lender Default”
means (a) the refusal (which has not been retracted) of a Lender in
violation of the requirements of this Agreement to make available its portion
of any incurrence of Loans or (b) a Lender having notified the
Administrative Agent and/or the Borrower that it does not intend to comply with
its obligations under Section 2.1.

 

“Lender Register”
has the meaning provided in Section 11.15.

 

 

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

 

“Loan” has the
meaning provided in Section 2.1.

 

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

 

“Material Adverse
Effect” means any or all of the following: 
(a) a material adverse effect on the business, operations,
Property, assets, liabilities, financial or other condition, or prospects of
the Borrower and its Subsidiaries, taken as a whole, or when used with
reference to any other Person, such Person and its Subsidiaries, taken as a
whole, as the case may be; (b) a material adverse effect on the ability of
the Borrower to perform its obligations under the Credit Documents to which it
is a party; (c) a material adverse effect on the ability of the Borrower
and its Subsidiaries, taken as a whole, to pay their liabilities and
obligations as they mature or become due; or (d) a material adverse effect
on the validity, effectiveness or enforceability, as against the Borrower, of
any of the Credit Documents to which it is a party.

 

“Maturity Date”
means the earliest to occur of (a) the Final Termination Date, (b) the
Extended Termination Date, (c) the date on which (i) the Total
Commitment is terminated pursuant to Section 9.2(a) and/or (ii) all
Loans and other Obligations are declared due and payable pursuant to Section 9.2(b),
and (d) the date on which the PUCO Order then in effect is revoked or
terminated.

 

“Minimum Borrowing
Amount” means (a) for Base Rate Loans, $1,000,000, with minimum
increments thereafter of $500,000, and (b) for Eurodollar Loans,
$5,000,000, with minimum increments thereafter of $500,000.

 

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

 

“Moody’s Rating”
means, on any date of determination, the rating accorded the Borrower’s senior
unsecured long-term debt by Moody’s (or if the Obligations are secured, the
rating accorded to the Borrower’s senior secured long-term debt by Moody’s), or
if such rating is unavailable, the Borrower’s long-term issuer credit rating
accorded to it by Moody’s.

 

“Multiemployer Plan”
means a Plan maintained pursuant to a collective bargaining agreement or any
other arrangement as to which the Borrower or any member of the Controlled
Group is a party to which more than one employer is obligated to make
contributions.

 

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

 

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

 

“Non-Defaulting Lender”
means each Lender other than a Defaulting Lender.

 

“Non-Increasing Lender”
has the meaning provided in Section 3.2(b).

 

“Note” has the
meaning provided in Section 2.4(d).

 

“Notice of Borrowing,
Continuation or Conversion” has the meaning provided in Section 2.2(b).

 

 

“Notice Office”
means the office of the Administrative Agent at 127 Public Square, Cleveland,
Ohio 44114, Attention: Yvette M. Dyson-Owens (facsimile: (216) 689-5962),
or such other office of the Administrative Agent, as the Administrative Agent
may designate to the Borrower from time to time.

 

“Obligations”
means all amounts, direct or indirect, contingent or absolute, of every type or
description, and at any time existing, owing by the Borrower to the
Administrative Agent or any Lender pursuant to the terms of this Agreement or
any other Credit Document (including, without limitation, interest and fees
that accrue after the commencement by or against the Borrower of any insolvency
proceeding, regardless of whether such interest and fees are allowed claims in
such proceeding and any and all indemnification obligations hereunder).

 

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

 

“Parent” means DPL
Inc., an Ohio corporation.

 

“Payment Office”
means the office of the Administrative Agent at 127 Public Square, Cleveland,
Ohio 44114, Attention: Yvette M. Dyson-Owens (facsimile: (216) 689-5962),
or such other office of the Administrative Agent, as the Administrative Agent
may designate to the Borrower from time to time.

 

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

 

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

 

“Permitted Acquisition”
means and includes any Acquisition as to which all of the following conditions
are satisfied:  (a) such Acquisition
(i) involves a line or lines of an Energy-Related Business, and (ii) involves
a Person or a line or lines of business that are located and operated in the
United States; (b) no Default or Event of Default shall exist prior to or
immediately after giving effect to such Acquisition; (c) such Acquisition
is not being consummated on a hostile basis and has been approved by the Board
of Directors of the target Person and no material challenge to such Acquisition
shall be pending or threatened by any shareholder or director of the seller or
Person to be acquired, and (d) as of the date of the consummation of such
Acquisition, all approvals required in connection therewith shall have been
obtained.

 

“Permitted Liens”
means Liens permitted by Section 8.3.

 

“Permitted Restrictive
Covenant” means (a) any covenant or restriction contained in this
Agreement, (b) any covenant or restriction contained in any other
agreement that is less burdensome than any covenant or restriction contained in
this Agreement, (c) in the case of transfers by any Subsidiary of the
Borrower to the Borrower or another Subsidiary of the Borrower of any property
or assets, any agreement setting forth customary restrictions on the
subletting, assignment or transfer of any property or asset that is a lease,
license or conveyance of similar property or assets; (d) in the case of
transfers by any Subsidiary of the Borrower to the Borrower or another
Subsidiary of the Borrower of any property or assets, any agreement with the
holder of a Lien otherwise permitted to exist under Section 8.3(e)(ii) restricting
on customary terms the transfer of any property or assets subject thereto; (e) any
agreement evidencing or setting forth the terms of any refunding, refinancing
or replacement Indebtedness the

 

 

incurrence of
which is not prohibited by this Agreement that contains any such restrictions
to the extent such restrictions are no less favorable to the Borrower or any of
its Subsidiaries or to the rights or interest of the Lenders than the terms in
effect in the Indebtedness being so refunded, refinanced or replaced
immediately prior to such refunding, refinancing or replacement; (f) any
agreement that has been entered into by the Borrower or any of its Subsidiaries
for the sale, lease, transfer or other disposition of any of its property or
assets so long as such sale, lease, transfer or other disposition is otherwise
permitted to be made under Section 8.2; and (g) any agreement
evidencing Indebtedness outstanding on the date a Person first becomes a
Subsidiary of the Borrower; provided, that
such agreement was not created in contemplation of the purchase or other
acquisition of such Person by the Borrower or any of its Subsidiaries and does
not extend to or cover any property or assets other than the property or assets
of the Person becoming such Subsidiary.

 

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

 

“Plan” means an
employee pension benefit plan that is covered by Title IV of ERISA or subject
to minimum funding standards under Section 412 of the Code as to which the
Borrower or any member of the Controlled Group may have any liability.

 

“Property” means,
with respect to any Person, any and all property, whether real, personal,
tangible, intangible, or mixed, of such Person, or other assets owned, leased
or operated by such Person.

 

“PUCO Order” means
an order from The Public Utilities Commission of Ohio in form and substance
satisfactory to the Administrative Agent, authorizing the Borrower to incur
Loans hereunder in an amount equal to or greater than the amount of the Total
Commitment.

 

“PUHCA” means the
Public Utility Holding Company Act of 1935, as amended.

 

“Rating Agency”
means any of Fitch, Moody’s or S&P.

 

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

 

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

 

“Redeemable Stock”
means, with respect to any Person, any capital stock or similar equity
interests of such Person that (a) is by its terms subject to mandatory
redemption, in whole or in part, pursuant to a sinking fund, scheduled
redemption or similar provisions, at any time prior to the latest Maturity
Date; or (b) otherwise is required to be repurchased or retired on a
scheduled date or dates, upon the occurrence of any event or circumstance, at
the option of the holder or holders thereof, or otherwise, at any time prior to
the latest Maturity Date under this Agreement, other than any such repurchase
or retirement occasioned by a “change of control” or similar event.

 

“Reference Banks”
means (a) KeyBank and (b) any other Lender or Lenders selected as a
Reference Bank by the Administrative Agent.

 

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

 

 

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

 

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

 

“Reportable Event”
means a reportable event as defined in Section 4043 of ERISA and the
regulations issued under such section, with respect a Plan, excluding, however,
such events as to which the PBGC has by regulations waived the requirement of Section 4043(a) of
ERISA that it be notified within 30 days of the occurrence of such event; provided, however, that a failure to meet the minimum
funding standard of Section 412 of the Code and of Section 302 of
ERISA shall be a Reportable Event regardless of the issuance any such waiver of
the notice requirement in accordance with either Section 4043(a) of
ERISA or Section 412(d) of the Code.

 

“Required Lenders”
means, (a) if there are no more than two Lenders, both Lenders or, (b) if
there are more than two Lenders, Non-Defaulting Lenders whose outstanding Loans
and Unutilized Commitment constitute at least 66-2/3% of the sum of the
total outstanding Loans and Unutilized Commitments of Non-Defaulting Lenders.

 

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

 

“S&P Rating”
means, on any date of determination, the rating accorded to the Borrower’s
senior unsecured long-term debt by S&P (or if the Obligations are secured,
the rating accorded to the Borrower’s senior secured long-term debt by
S&P).

 

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

 

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

 

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

 

“Single Employer Plan”
means a Plan maintained by the Borrower or any member of the Controlled Group
for employees of the Borrower or any member of the Controlled Group.

 

“Standard Permitted
Liens” means the following:

 

(a)           Liens for taxes not yet delinquent or Liens
for taxes being contested in good faith and by appropriate proceedings for
which adequate reserves in accordance with GAAP have been established;

 

(b)           Liens in respect of Property or assets
imposed by law that were incurred in the ordinary course of business, such as
carriers’, warehousemen’s, materialmen’s and mechanics’ Liens and other similar
Liens arising in the ordinary course of business, that (i) do not secure
payment obligations more than 60 days past due; (ii) do not, in the
aggregate, materially detract from the value of such Property or assets or
materially

 

 

impair the use thereof in
the operation of the business of the Borrower or any of its Subsidiaries and do
not secure any Indebtedness; or (iii) are contested in good faith by
appropriate proceedings and for which adequate reserves shall have been set
aside on the books of the Borrower or its respective Subsidiary, as the case
may be;

 

(c)           bankers’
Liens and rights of setoff arising by operation of law and contractual rights
of setoff;

 

(d)           Liens
arising from judgments, decrees or attachments in circumstances not
constituting an Event of Default under Section 9.1(g);

 

(e)           Liens
(other than any Lien imposed by ERISA) incurred or deposits made in the
ordinary course of business in connection with workers’ compensation,
unemployment insurance and other types of social security; and mechanic’s
Liens, carrier’s Liens, and other Liens to secure the performance of tenders,
statutory obligations, contract bids, government contracts, performance and
return-of-money bonds and other similar obligations, incurred in the ordinary
course of business (exclusive of obligations in respect of the payment for
borrowed money), whether pursuant to statutory requirements, common law or
consensual arrangements;

 

(f)            Leases
or subleases granted in the ordinary course of business to others not
interfering in any material respect with the business of the Borrower or any of
its Subsidiaries and any interest or title of a lessor under any lease not in
violation of this Agreement;

 

(g)           easements,
rights-of-way, zoning or other restrictions, charges, encumbrances, defects in
title, prior rights of other Persons, and obligations contained in similar
instruments, in each case that do not involve, and are not likely to involve at
any future time, either individually or in the aggregate, (i) a substantial and
prolonged interruption or disruption of the business activities of the Borrower
and its Subsidiaries considered as an entirety, or (ii) a Material Adverse
Effect;

 

(h)           precautionary
filing of Uniform Commercial Code financing statements by lessors in connection
with Operating Leases;

 

(i)            Liens
arising from the rights of lessors under leases (including financing statements
regarding Property subject to lease) permitted under this Agreement, provided that such Liens are only in respect of the Property
subject to, and secure only, the respective lease (and any other lease with the
same or an affiliated lessor); and

 

(j)            rights
of consignors of goods, whether or not perfected by the filing of a financing
statement under the UCC.

 

“Subsidiary” means, with respect to any Person,
(a) any corporation more than 50% of whose stock of any class or classes having
by the terms thereof ordinary voting power to elect a majority of the directors
of such corporation (irrespective of whether at the time stock of any class or
classes of such corporation shall have or might have voting power by reason of
the happening of any contingency) is at the time owned by such Person directly
or indirectly through Subsidiaries and (b) any partnership, limited liability
company, association, joint venture or other entity in which such Person
directly or indirectly through Subsidiaries, has more than a 50% equity
interest at the time or in which the Borrower, one or more other Subsidiaries
of the Borrower, or the Borrower and one or more Subsidiaries of the Borrower,

 

 

directly or indirectly,
has the power to direct the policies, management and affairs thereof.  Unless otherwise expressly provided, all references herein to “Subsidiary” shall mean a
Subsidiary of the Borrower.

 

“Substantial Portion” means, with respect to
the Property of the Borrower and its Subsidiaries, Property that (a) represents
more than 10% of the Consolidated Tangible Assets of the Borrower and its
Subsidiaries as would be shown in the consolidated financial statements of the
Borrower and its Subsidiaries as at the beginning of the twelve-month period
ending with the month in which such determination is made or (b) is responsible
for more than 10% of the consolidated net sales or of the Consolidated Net Income
of the Borrower and its Subsidiaries as reflected in the financial statements
referred to in clause (a) above.

 

“Swap Agreement” means (a) any and all
rate swap transactions, basis swaps, credit derivative transactions, forward
rate transactions, commodity swaps, commodity options, forward commodity
contracts, equity or equity index swaps or options, bond or bond price or bond
index swaps or options or forward bond or forward bond price or forward bond
index transactions, interest rate options, forward foreign exchange
transactions, cap transactions, floor transactions, collar transactions,
currency swap transactions, cross-currency rate swap transactions, currency
options, spot contracts, or any other similar transactions or any combination
of any of the foregoing (including any options to enter into any of the
foregoing), irrespective of whether any such transaction is governed by or
subject to any master agreement, and (b) any and all transactions of any
kind, and the related confirmations, that are subject to the terms and
conditions of, or governed by, any form of master agreement published by the
International Swaps and Derivatives Association, Inc., any International
Foreign Exchange Master Agreement, or any other master agreement (any such master
agreement, together with any related schedules, a “Master Agreement”),
including any such obligations or liabilities under any Master Agreement.

 

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

 

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

 

“Total Commitment” means the sum of the
Commitments of the Lenders.

 

“Type” means any type of Loan determined with
respect to the interest option applicable thereto, i.e.,
a Base Rate Loan or Eurodollar Loan.

 

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

 

“Unfunded Liabilities” means the amount, if
any, by which the present value of all vested and unvested accrued benefits
under all Single Employer Plans exceeds the fair market value of all such Plan
assets allocable to such benefits, all determined as of the then most recent
valuation date for such Plans using PBGC actuarial assumptions for single
employer plan terminations.

 

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

 

“Unutilized Commitment” means, at any time,
with respect to any Lender, the excess of (a) such Lender’s Commitment at
such time over (b) the aggregate principal amount of outstanding Loans made by
such Lender.

 

 

“Unutilized Total Commitment” means, at any
time, the excess of (a) the Total Commitment at such time over (b) the
aggregate principal amount of all outstanding Loans.

 

“Utilization Fees” has the meaning provided in
Section 3.1(b).

 

“Wholly-Owned Subsidiary” means each Subsidiary
of the Borrower at least 95% of whose capital stock, equity interests and
partnership interests, other than director’s qualifying shares or similar
interests, are owned directly or indirectly by the Borrower.

 

Section 1.2             Computation of Time Periods. 
In this Agreement in the computation of periods of time from a specified
date to a later specified date, the word “from” means “from and including,” the
words “to” and “until” each means “to but excluding,” and the word “through”
means “through and including.”

 

Section 1.3             Accounting Terms. 
Except as otherwise specifically provided herein, all terms of an
accounting or financial nature shall be construed in accordance with GAAP, as
in effect from time to time.

 

Section 1.4             Terms
Generally. 
The definitions of terms herein shall apply equally to the singular and
plural forms of the terms defined. 
Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have
the same meaning and effect as the word “shall”.  Unless the context requires otherwise, (a) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring to such
agreement, instrument or other document as from time to time amended, restated,
supplemented or otherwise modified (subject to any restrictions on such
amendments, restatements, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed
to include such Person’s successors and assigns, (c)
the words “herein”, “hereof” and “hereunder”, and words of similar import,
shall be construed to refer to this Agreement in its entirety and not to any
particular provision hereof, (d) all references
herein to Sections, Annexes, Schedules and Exhibits shall be construed to refer
to Sections of, and Annexes, Schedules and Exhibits to, this Agreement, and (e) the words “asset” and “property” (or “Property”)
shall be construed to have the same meaning and effect and to refer to any and
all Real Property, tangible and intangible assets and properties, including
cash, securities, accounts and contract rights, and interests in any of the
foregoing.

 

ARTICLE
II.

AMOUNT AND TERMS OF LOANS

 

Section 2.1             Commitments for Loans. 
Subject to and upon the terms and conditions herein set forth, each
Lender severally agrees to make a revolving loan or revolving loans (each a “Loan”
and, collectively, the “Loans”) to the Borrower, which Loans (a) may be incurred by the Borrower at any time and from
time to time on and after the Closing Date and prior to the Maturity Date; (b) except as otherwise provided herein, may, at the
option of the Borrower, be incurred and maintained as, or Converted into, Loans
that are Base Rate Loans or Eurodollar Loans, in each case denominated in
Dollars, provided that all Loans made as part of
the same Borrowing shall, unless otherwise specifically provided herein,
consist of Loans of the same Type; (c) may be repaid
or prepaid and re-borrowed in accordance with the provisions hereof;
(d) may only be made if after giving effect thereto the aggregate
principal amount of outstanding Loans does not exceed the Total Commitment; and (e) shall not exceed for any Lender at any time
outstanding such Lender’s Commitment at such time.  In addition, no Loans

 

 

shall be incurred at any time if after giving effect
thereto the Borrower would be required to prepay Loans in accordance with
Section 4.3(a).

 

Section 2.2             Borrowing, Continuation or Conversion of
Loans.

 

(a)           Borrowings, Continuations and
Conversions.  The Borrower may, in
accordance with the provisions set forth in this Section and subject to the
other terms and conditions of this Agreement, (i) request Borrowings, (ii)
Convert all or a portion of the outstanding principal amount of Loans of one
Type into a Borrowing or Borrowings of another Type of Loans that can be made
pursuant to the terms of this Agreement and (iii) Continue a Borrowing of
Eurodollar Loans at the end of the applicable Interest Period as a new
Borrowing of Eurodollar Loans with a new Interest Period, provided
that (A) any Conversion of Eurodollar Loans into Base Rate Loans shall be
made on, and only on, the last day of an Interest Period for such Eurodollar
Loans, (B) Base Rate Loans may only be Converted into Eurodollar Loans if no
Default under Section 9.1(a) or Event of Default is in existence on the date of
the Conversion unless the Required Lenders otherwise agree, and (C) Base Rate
Loans may not be Converted into Eurodollar Loans during any period when such
Conversion is not permitted under Section 2.6.

 

(b)           Notice of Borrowings, Continuation
and Conversion.  Each Borrowing,
Continuation or Conversion of a Loan shall be made upon notice in the form
provided for below, which notice shall be provided by the Borrower to the
Administrative Agent at the Notice Office not later than (i) in the case of
each Borrowing of or Continuation of or Conversion into a Eurodollar Loan,
12:00 noon (local time at its Notice Office) at least three Business Days’
prior to the date of such Borrowing, Continuation or Conversion and (ii) in the
case of each Borrowing of or Conversion into a Base Rate Loan, 12:00 noon
(local time at its Notice Office) on the proposed date of such Borrowing or
Conversion.  Each such request shall be
made by an Authorized Officer delivering written notice of such request
substantially in the form of Exhibit B hereto (each such notice, a “Notice
of Borrowing, Continuation or Conversion”) or by telephone (to be confirmed
immediately in writing by delivery of an Authorized Officer of a Notice of
Borrowing, Continuation or Conversion), and in any event each such request
shall be irrevocable and shall specify (A) the aggregate principal amount of
the Loans to be made (which shall be in the Minimum Borrowing Amount) pursuant
to such Borrowing or, if applicable, the Borrowings to be Continued or
Converted, (B) the date of the Borrowing, Continuation or Conversion (which
shall be a Business Day), (C) whether the Borrowing will consist of Base
Rate Loans or Eurodollar Loans or, in the case of a Continuation or Conversion,
the Loans to be Continued or Converted, and (D) if applicable, the initial
Interest Period thereto or, in the case of a Continuation, the new Interest
Period.  Without in any way limiting the
obligation of the Borrower to confirm in writing any telephonic notice
permitted to be given hereunder, the Administrative Agent may act prior to
receipt of written confirmation without liability upon the basis of such
telephonic notice believed by the Administrative Agent in good faith to be from
an Authorized Officer entitled to give telephonic notices under this Agreement
on behalf of the Borrower.  In each such
case, the Administrative Agent’s record of the terms of such telephonic notice
shall be conclusive absent manifest error.

 

(c)           Minimum Borrowing Amount.  The aggregate principal amount of each
Borrowing by the Borrower shall not be less than the Minimum Borrowing
Amount.  No partial Conversion of a
Borrowing of Eurodollar Loans shall reduce the outstanding principal amount of
the Eurodollar Loans made pursuant to such Borrowing to less than the Minimum
Borrowing Amount applicable thereto.

 

(d)           Maximum Borrowings.  More than one Borrowing may be incurred by
the Borrower on any day, provided that (i) if there are two or
more Borrowings on a single day by the Borrower that consist of Eurodollar
Loans, each such Borrowing shall have a different initial Interest Period, and (ii) at no time shall
there be more than six Borrowings of Eurodollar Loans outstanding hereunder.

 

 

(e)           Notice to Lenders. The
Administrative Agent shall promptly give each Lender written notice (or
telephonic notice promptly confirmed in writing) of (i) each proposed Borrowing,
(ii) such Lender’s proportionate share thereof and (iii) the other matters
covered by the Notice of Borrowing, Continuation or Conversion relating
thereto.

 

Section 2.3             Disbursement
of Funds.

 

(a)           Loans to be Made Pro Rata.  The
obligation of each Lender to make Loans hereunder and the Commitment of each
Lender are several and not joint obligations. 
All Borrowings shall be made by the Lenders pro rata
on the basis of their respective Commitments. It is understood that no Lender
shall be responsible for any default by any other Lender in its obligation to
make Loans hereunder and that each Lender shall be obligated to make the Loans
provided to be made by it hereunder, regardless of the failure of any other
Lender to fulfill its Commitment.

 

(b)           Funding of Loans.  No later than 2:00 P.M. (local time at
the Payment Office) on the date specified in each Notice of Borrowing,
Continuation or Conversion, each Lender will make available its pro rata share, if any, of each Borrowing requested to be
made on such date in the manner provided below. 
All amounts shall be made available to the Administrative Agent in
Dollars and immediately available funds at the Payment Office and the
Administrative Agent promptly will make available to the Borrower by depositing
to its account at the Payment Office the aggregate of the amounts so made
available in the type of funds received.

 

(c)           Advance Funding.  Unless the Administrative Agent shall have
been notified by any Lender prior to the date of Borrowing that such Lender
does not intend to make available to the Administrative Agent its portion of
the Borrowing or Borrowings to be made on such date, the Administrative Agent
may assume that such Lender has made such amount available to the
Administrative Agent on such date of Borrowing, and the Administrative Agent,
in reliance upon such assumption, may (in its sole discretion and without any
obligation to do so) make available to the Borrower a corresponding
amount.  If such corresponding amount is
not in fact made available to the Administrative Agent by such Lender and the
Administrative Agent has made available same to the Borrower, the
Administrative Agent shall be entitled to recover such corresponding amount
from such Lender.  If such Lender does
not pay such corresponding amount forthwith upon the Administrative Agent’s
demand therefor, the Administrative Agent shall promptly notify the Borrower,
and the Borrower shall immediately pay such corresponding amount to the
Administrative Agent.  The Administrative
Agent shall also be entitled to recover from such Lender or the Borrower, as
the case may be, interest on such corresponding amount in respect of each day
from the date such corresponding amount was made available by the
Administrative Agent to the Borrower to the date such corresponding amount is
recovered by the Administrative Agent, at a rate per annum equal to (x) if paid
by such Lender, the overnight Federal Funds Effective Rate or (y) if paid by
the Borrower, the then applicable rate of interest, calculated in accordance
with Section 2.5, for the respective Loans (but without any requirement to pay
any amounts in respect thereof pursuant to Section 2.7).

 

(d)           Rights Not Prejudiced. Nothing
herein and no subsequent termination of the Commitments pursuant to Section 3.3
or 3.4 shall be deemed to relieve any Lender from its obligation to fulfill its
commitments hereunder and in existence from time to time or to prejudice any
rights that the Borrower may have against any Lender as a result of any default
by such Lender hereunder.

 

Section 2.4             Evidence of Obligations.

 

(a)           Loan Accounts of Lenders.  The Obligations of the Borrower owing to each
Lender shall be evidenced by, and each Lender shall maintain in accordance with
its usual practice, an account or 

 

 

accounts established by such Lender, which account or accounts
shall include the amounts of principal and interest payable and paid to such
Lender from time to time hereunder.

 

(b)           Loan Accounts of Administrative
Agent.  The Administrative Agent
shall maintain accounts in which it shall record (i)
the amount of each Loan made hereunder, the Type thereof and the Interest
Period and applicable interest rate if such Loan is a Eurodollar Loan, (ii) the amount of any principal due and payable or
to become due and payable from the Borrower to each Lender hereunder, and (iii) the amount of any sum received by the
Administrative Agent hereunder for the account of the Lenders and each Lender’s
share thereof.

 

(c)           Effect of Loan Accounts.  The entries made in the accounts maintained
pursuant to Section 2.4(a) and (b) shall be prima facie
evidence of the existence and amounts of the obligations recorded therein; provided, that the failure of any Lender or the
Administrative Agent to maintain such accounts or any error therein shall not
in any manner affect the obligation of the Borrower to repay or prepay the
Loans or any other amounts in accordance with the terms of this Agreement.

 

(d)           Notes.  Upon request of any Lender, the Borrower’s
obligation to pay the principal of, and interest on, the Loans made to it by
each Lender shall be evidenced by a promissory note
of the Borrower substantially in the form of Exhibit A with blanks
appropriately completed in conformity herewith (each a “Note” and,
collectively, the “Notes”), provided that
the decision of any Lender not to request a Note shall in no way detract from
the Borrower’s obligation to repay the Loans and other amounts owing by the
Borrower to such Lender.  Any Note issued
by the Borrower to a Lender shall:  (i) be executed by the Borrower; (ii) be payable to the order of such Lender and be dated
on or prior to the Closing Date; (iii) be payable in
the principal amount of the Loans evidenced thereby; (iv)
mature on the Maturity Date; (v) bear interest as
provided in Section 2.5 in respect of the Base Rate Loans or Eurodollar
Loans, as the case may be, evidenced thereby; (vi) be
subject to mandatory prepayment as provided in Section 4.3; and (vii) be entitled to the benefits of this Agreement and
the other Credit Documents.

 

Section 2.5             Interest.

 

(a)           Interest on Base Rate Loans.  During such periods as a Loan is a Base Rate
Loan, it shall bear interest at a fluctuating rate per annum that shall at all
times be equal to the Base Rate in effect from time to time plus the Applicable Margin in effect from time to time for
such Loan.

 

(b)           Interest on Eurodollar Loans.  During such periods as a Loan is a Eurodollar
Loan, it shall bear interest at a rate per annum that shall at all times during
an Interest Period therefor be the relevant Adjusted Eurodollar Rate for such
Eurodollar Loan for such Interest Period plus the
Applicable Margin in effect from time to time for such Loan.

 

(c)           Default Interest.  Notwithstanding the above provisions, if a
Default under Section 9.1(a) or an Event of Default has occurred and is
continuing, then, upon written notice by the Administrative Agent (which notice
the Administrative Agent shall give at the direction of the Required Lenders),
all outstanding amounts of principal and, to the extent permitted by law, all
overdue interest, in respect of each Loan shall bear interest, payable on
demand, at a rate per annum equal to 2% per annum above the interest rate that
is or would be applicable from time to time pursuant to Section 2.5(a).  If any amount (other than the principal of
and interest on the Loans) payable by the Borrower under the Credit Documents
is not paid when due, upon written notice by the Administrative Agent (which
notice the Administrative Agent shall give at the direction of the Required
Lenders), such amount shall bear interest, payable on demand, at a rate per
annum equal to 2% per annum above the interest rate that is or would be
applicable from time to time pursuant to Section 2.5(a).

 

 

(d)           Accrual and Payment of Interest.  Interest shall accrue from and including the
date of any Borrowing to but excluding the date of any prepayment or repayment
thereof and shall be payable:

 

(i)            in
respect of each Base Rate Loan, in arrears on the last Business Day of each
June, September, December and March and on the Maturity Date;

 

(ii)           in
respect of each Eurodollar Loan, on the last day of each Interest Period
applicable thereto and, in the case of an Interest Period in excess of three
months, on the dates that are successively 90 days after the commencement of
such Interest Period and on the Maturity Date;

 

(iii)          in
respect of any repayment or prepayment of any Loan (other than a prepayment of
a Base Rate Loan), on the date of such repayment or prepayment;

 

(iv)          in
respect of any Conversion of any Eurodollar Loan prior to the end of the
current Interest Period therefor, on the effective date of such Conversion; and

 

(v)           in
respect of any interest payment pursuant to Section 2.5(c), on demand.

 

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

 

(f)            Information as to Interest Rates.  The Administrative Agent upon determining the
interest rate for any Borrowing or any change in interest rate applicable to
any Borrowing as a result of a change in the Applicable Margin, a change in the
Base Rate, the implementation of the default rate or otherwise, shall promptly
notify the Borrower and the Lenders thereof, provided
that (i) any such change shall be immediately effective as and when such
change occurs without regard to when the Administrative Agent provides any such
notice, and (ii) the failure of the Administrative Agent to give any such
notice shall in no way detract from or affect the obligation of the Borrower to
pay interest at the changed rate.  If the
Administrative Agent is unable to determine the Adjusted Eurodollar Rate for
any Borrowing of Eurodollar Loans based on the quotation service referred to in
clause (i) of the definition of the term Adjusted Eurodollar Rate, it will promptly
so notify the Reference Banks and each Reference Bank will furnish the
Administrative Agent timely information for the purpose of determining the
Adjusted Eurodollar Rate for such Borrowing. 
If any one or more of the Reference Banks shall not timely furnish such
information, the Administrative Agent shall determine the Adjusted Eurodollar
Rate for such Borrowing on the basis of timely information furnished by the
remaining Reference Banks.

 

Section 2.6             Increased Costs; Illegality.

 

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

 

(i)            on
any date for determining the Adjusted Eurodollar Rate for any Interest Period
that, by reason of any changes arising after the Closing Date affecting the
London interbank market, adequate and fair means do not exist for ascertaining
the applicable interest rate on the basis provided for in the definition of
Adjusted Eurodollar Rate; or

 

 

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

 

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

 

then, and in each such event, such Lender (or the
Administrative Agent in the case of clause (i) above) shall (x) on or promptly
following such date or time and (y) within 10 Business Days of the date on
which such event no longer exists give notice (by telephone confirmed in
writing) to the Borrower and to the Administrative Agent of such determination
(which notice the Administrative Agent shall promptly transmit to each of the
other Lenders).  Thereafter (x) in
the case of clause (i) above, Eurodollar Loans shall no longer be available
until such time as the Administrative Agent notifies the Borrower and the
Lenders that the circumstances giving rise to such notice by the Administrative
Agent no longer exist, and any Notice of Borrowing, Continuation or Conversion
given by the Borrower with respect to Eurodollar Loans that have not yet been incurred,
Converted or Continued shall be deemed rescinded by the Borrower or, in the
case of a Notice of Borrowing, Continuation or Conversion, shall, at the option
of the Borrower, be deemed converted into a Notice of Borrowing, Continuation
or Conversion for Base Rate Loans to be made on the date of Borrowing contained
in such Notice of Borrowing, Continuation or Conversion, (y) in the case of
clause (ii) above, the Borrower shall pay to such Lender, upon written demand
therefor, such additional amounts (in the form of an increased rate of, or a
different method of calculating, interest or otherwise as such Lender shall
determine) as shall be required to compensate such Lender, for such increased
costs or reductions in amounts receivable hereunder (a written notice as to the
additional amounts owed to such Lender, showing the basis for the calculation
thereof, which basis must be reasonable, submitted to the Borrower by such
Lender shall, absent manifest error, be final and conclusive and binding upon
all parties hereto) and (z) in the case of clause (iii) above, the
Borrower shall take one of the actions specified in Section 2.6(b) as
promptly as possible and, in any event, within the time period required by law.

 

(b)           At any time that any Eurodollar Loan
is affected by the circumstances described in Section 2.6(a)(ii) or (iii),
the Borrower may (and in the case of a Eurodollar Loan affected pursuant to
Section 2.6(a)(iii) the Borrower shall) either (i) if
the affected Eurodollar Loan is then being made pursuant to a Borrowing, by
giving the Administrative Agent telephonic notice (confirmed promptly in
writing) thereof on the same date that the Borrower was notified by a Lender
pursuant to Section 2.6(a)(ii) or (iii), cancel such Borrowing, convert
the related Notice of Borrowing, Continuation or Conversion into one requesting
a Borrowing of Base Rate Loans or require the affected Lender to make its
requested Loan as a Base Rate Loan, or (ii) if
the affected Eurodollar Loan is then outstanding, upon at least one Business
Day’s notice to the Administrative Agent, require the affected Lender to
Convert each such Eurodollar

 

 

Loan into a Base Rate Loan, provided
that if more than one Lender is affected at any time, then all affected Lenders
must be treated the same pursuant to this Section 2.6(b).

 

(c)           If any Lender shall have determined
that after the Closing Date, the adoption of any applicable law, rule or
regulation regarding capital adequacy, or any change therein, or any change in
the interpretation or administration thereof by any governmental authority,
central bank or comparable agency charged by law with the interpretation or
administration thereof, or compliance by such Lender or its parent corporation
with any request or directive regarding capital adequacy (whether or not having
the force of law) of any such authority, central bank, or comparable agency, in
each case made subsequent to the Closing Date, has or would have the effect of
reducing by an amount reasonably deemed by such Lender to be material the rate
of return on such Lender’s or its parent corporation’s capital or assets as a
consequence of such Lender’s commitments or obligations hereunder to a level
below that which such Lender or its parent corporation could have achieved but
for such adoption, effectiveness, change or compliance (taking into
consideration such Lender’s or its parent corporation’s policies with respect
to capital adequacy), then from time to time, within 15 days after demand by
such Lender (with a copy to the Administrative Agent), the Borrower shall pay
to such Lender such additional amount or amounts as will compensate such Lender
or its parent corporation for such reduction. 
Each Lender, upon determining in good faith that any additional amounts
will be payable pursuant to this Section 2.6(c), will give prompt written
notice thereof to the Borrower, which notice shall set forth, in reasonable
detail, the basis of the calculation of such additional amounts, which basis
must be reasonable, although the failure to give any such notice shall not
release or diminish any of the Borrower’s obligations to pay additional amounts
pursuant to this Section 2.6(c) upon the subsequent receipt of such
notice.

 

(d)           Notwithstanding anything in this
Agreement to the contrary, no Lender shall be
entitled to compensation or payment or reimbursement of other amounts under
Section 2.6 or 4.5 for any amounts incurred or accruing prior to the
Closing Date or more than 270 days prior to the giving of notice to the
Borrower of additional costs or other amounts of the nature described in such
Sections.

 

Section 2.7             Breakage
Compensation. 
The Borrower shall compensate each applicable Lender, upon its written
request (which request shall set forth the detailed basis for requesting and
the method of calculating such compensation), for all reasonable losses, costs,
expenses and liabilities (including, without limitation, any loss, cost,
expense or liability incurred by reason of the liquidation or reemployment of
deposits or other funds required by such Lender to fund its Eurodollar Loans
that such Lender may sustain):  (i) if for any reason (other than a
default by such Lender or the Administrative Agent) a Borrowing of Eurodollar
Loans does not occur on a date specified therefor in a Notice of Borrowing,
Conversion or Continuation (whether or not withdrawn by the Borrower); (ii) if any repayment, prepayment, Conversion or
Continuation of any of its Eurodollar Loans occurs on a date that is not the
last day of an Interest Period applicable thereto;
(iii) if any prepayment of any of its Eurodollar Loans is not made
on any date specified in a notice of prepayment given by the Borrower; (iv) as a result of an assignment by a Lender of any
Eurodollar Loan other than on the last day of the Interest Period applicable
thereto pursuant to a request by the Borrower pursuant to Section 2.8(b);
or (v) as a consequence of (x) any other
default by the Borrower to repay or prepay its Eurodollar Loans when required
by the terms of this Agreement or (y) an election made pursuant to
Section 2.6(b).  The Borrower shall
pay such Lender the amount shown as due on any such request within 10 days
after receipt thereof.

 

Section 2.8             Change of Lending Office; Replacement of Lenders.

 

(a)           Each Lender agrees that, upon the
occurrence of any event giving rise to the operation of Section 2.6(a)(ii)
or (iii) or 2.6(c) with respect to such Lender, it will, if requested by the
Borrower, use reasonable efforts (subject to overall policy considerations of
such Lender) to designate another Applicable Lending Office for any Loans or
Commitment affected by such event, provided that
such

 

designation is made on such terms that such Lender and
its Applicable Lending Office suffer no economic, legal or regulatory
disadvantage, with the object of avoiding the consequence of the event giving
rise to the operation of any such Section.

 

(b)           If any Lender requests any
compensation, reimbursement or other payment under Section 2.6(a)(ii) or
(iii), 2.6(c) or 3.2(b) with respect to such Lender, or if any Lender is a
Defaulting Lender, then the Borrower may, at its sole expense and effort, upon
notice to such Lender and the Administrative Agent, require such Lender to
assign and delegate, without recourse (in accordance with the restrictions
contained in Section 11.4(c)), all its interests, rights and obligations
under this Agreement to an Eligible Assignee that shall assume such
obligations; provided that
(i) the Borrower shall have received the prior written consent of the
Administrative Agent, which consent shall not be unreasonably withheld, (ii) such Lender shall have received payment of an amount
equal to the outstanding principal of its Loans, accrued interest thereon,
accrued fees and all other amounts payable to it hereunder, from the assignee
(to the extent of such outstanding principal and accrued interest and fees) or
the Borrower (in the case of all other amounts, including any breakage
compensation under Section 2.7 and any amounts accrued and owing to such
Lender under Section 2.6(a)(ii) or (iii), 2.6(c) or 3.2(b)), and (iii) in the case of any such assignment resulting
from a claim for compensation, reimbursement or other payments required to be
made under Section 2.6(a)(ii) or (iii), 2.6(c) or 3.2(b) with respect to
such Lender, such assignment will result in a reduction in such compensation,
reimbursement or payments.  A Lender
shall not be required to make any such assignment and delegation if, prior
thereto, as a result of a waiver by such Lender or otherwise, the circumstances
entitling the Borrower to require such assignment and delegation cease to
apply.

 

(c)           Nothing in this Section 2.8
shall affect or postpone any of the obligations of the Borrower or the right of
any Lender provided in Section 2.6.

 

ARTICLE
III.

FEES; COMMITMENTS; EXTENSION OF MATURITY

 

Section 3.1             Fees.

 

(a)           Facility Fees.  The
Borrower agrees to pay to the Administrative Agent facility fees (“Facility
Fees”) for the account of each Non-Defaulting Lender that has a Commitment
for the period from the Closing Date to the Maturity Date, computed for each
day at a rate per annum equal to the Applicable Facility Fee Rate in effect for
such day on the amount of such Non-Defaulting Lender’s Commitment in effect on
such day.  Facility Fees shall be due and
payable in arrears on the last Business Day of each December, March, June and
September and on the Maturity Date.

 

(b)           Utilization Fee.  The Borrower agrees to pay to the
Administrative Agent utilization fees (the “Utilization Fees”) for the
account of each Non-Defaulting Lender that has a Commitment for each day on
which the aggregate principal amount of outstanding Loans made by all Lenders
exceeds 50% of the Total Commitment, computed for each such day at a rate per
annum equal to 0.125% times the aggregate principal amount of Loans made by
such Non-Defaulting Lender outstanding on such day.  Utilization Fees, if any, shall be due and
payable quarterly in arrears on the last Business Day of each December, March,
June and September and on the Maturity Date.

 

(c)           Other Fees.  The Borrower shall pay to the Administrative
Agent, on the Closing Date and thereafter, for its own account and/or for
distribution to the Lenders, such fees as heretofore agreed by the Borrower and
the Administrative Agent or the Lenders as set forth in the Agent Fee Letter,
the Closing Fee Letter or any other similar agreement.

 

 

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

 

Section 3.2             Increase in Commitments.

 

(a)           At any time after the Closing Date,
the Borrower may, by written notice to the Administrative Agent, request that
the Total Commitment be increased by an amount not to exceed $50,000,000 in the
aggregate for all such increases from the Closing Date until the Maturity Date,
provided that no Default or Event of
Default has occurred and is continuing at the time of such request and on the
date of any such increase.  The
Administrative Agent shall deliver a copy of such request to each Lender.  The Borrower shall set forth in such request
the amount of the requested increase in the Total Commitment (which shall be in
minimum increments of $10,000,000 and a minimum amount of $10,000,000) and the
date on which such increase is requested to become effective (which shall be
not less than 10 Business Days nor more than 60 days after the date of such
notice and that, in any event, must be at least 60 days prior to the Maturity
Date).  The Borrower may arrange for one
or more banks or other entities that are Eligible Assignees to provide a
Commitment hereunder pursuant to this Section 3.2(a) (each such Person so
agreeing being an “Augmenting Lender”) and/or the Borrower may offer to
each Lender the opportunity to increase its Commitment by its Percentage of the
proposed increased amount.  Each Lender
shall, by notice to the Borrower and the Administrative Agent given not more
than 10 days after the date of the Administrative Agent’s notice, either agree
to increase its Commitment by all or a portion of the offered amount (each such
Lender so agreeing being an “Increasing Lender”) or decline to increase
its Commitment (and any such Lender that does not deliver such a notice within
such period of 10 days shall be deemed to have declined to increase its
Commitment and each Lender so declining or being deemed to have declined being
a “Non-Increasing Lender”).  Each
Augmenting Lender shall execute all such documentation as the Administrative
Agent shall reasonably specify to evidence its Commitment and/or its status as
a Lender with a Commitment hereunder. 
Any increase in the Total Commitment may be made in an amount that is
less than the increase requested by the Borrower if the Borrower is unable to
arrange for, or chooses not to arrange for, Augmenting Lenders.

 

(b)           Each of the parties hereto agrees
that the Administrative Agent may take any and all actions as may be reasonably
necessary to ensure that after giving effect to any increase in the Total
Commitment pursuant to this Section 3.2(b), the outstanding Loans (if any) are
held by the Lenders with Commitments in accordance with their new Percentages.
This may be accomplished at the discretion of the Administrative
Agent:  (w) by requiring the outstanding Loans to be prepaid with the
proceeds of new Borrowings; (x) by causing the Non-Increasing Lenders to assign
portions of their outstanding Loans to Increasing Lenders and Augmenting
Lenders; (y) by permitting the Borrowings outstanding at the time of any
increase in the Total Commitment pursuant to this Section 3.2(b) to remain
outstanding until the last days of the respective Interest Periods therefor,
even though the Lenders would hold such Borrowings other than in accordance
with their new Percentages; or (z) by any combination of the
foregoing.  Any prepayment or assignment described in this paragraph
(ii) shall be subject to Section 2.7 hereof but otherwise without premium
or penalty.  In addition, in connection
with any increase in the Total Commitment pursuant to this Section the
Administrative Agent may, in consultation with the Borrower, appoint any Lender
as a Syndication Agent, Documentation Agent, Co-Agent or other similar title.

 

Section 3.3             Voluntary Termination/Reduction of
Commitments.  Upon at least three Business Days’ prior
irrevocable written notice (or telephonic notice confirmed in writing) to the
Administrative Agent at the Notice Office (which notice the Administrative
Agent shall promptly transmit to each of the Lenders), the Borrower shall have
the right to:

 

(a)           terminate in whole the Total
Commitment, provided that all
outstanding Loans are contemporaneously prepaid in accordance with
Section 4.2; or

 

 

(b)           partially and permanently reduce the
Unutilized Total Commitment, provided that (i) any such reduction shall apply to proportionately and
permanently reduce the Commitment of each of the Lenders;
and (ii) any partial reduction of the Unutilized Total Commitment
pursuant to this Section 3.3(b) shall be in the amount of at least
$10,000,000 (or, if greater, in integral multiples of $500,000).

 

Section 3.4             Termination of Commitments. 
The Total Commitment (and the Commitment of each Lender) shall terminate
on the Maturity Date.

 

Section 3.5             Extension Request. Upon the Borrower’s delivery of an Extension Request
to the Administrative Agent and provided no Default or Event of Default has
occurred and is continuing at the time of such delivery, the maturity of the
Loans shall immediately be extended to the date identified in such Extension
Request (such date, the “Extended Termination Date”), which date shall
be no later than (a) the date on which its then current PUCO Order that is in
full force and effect expires or terminates and (b) the Final Termination Date.

 

ARTICLE
IV.

PAYMENTS

 

Section 4.1             Repayment of Loans. 
The Borrower shall repay the aggregate principal amount of all
outstanding Loans to the Administrative Agent for the ratable account of the
Lenders on the Maturity Date.

 

Section 4.2             Voluntary Prepayments. 
The Borrower shall have the right to prepay any of its Loans, in whole
or in part, without premium or penalty (except as specified below), from time
to time on the following terms and conditions:

 

(a)           the Borrower shall give the
Administrative Agent at the Notice Office written or telephonic notice (in the
case of telephonic notice, promptly confirmed in writing if so requested by the
Administrative Agent) of its intent to prepay the Loans, the amount of such
prepayment and (in the case of Eurodollar Loans) the specific Borrowing(s)
pursuant to which made, which notice shall be received by the Administrative
Agent by (i) 12:00 noon (local time at the Notice Office) three Business Days
prior to the date of such prepayment, in the case of any prepayment of
Eurodollar Loans, or (ii) 12:00 noon (local time at the Notice Office) one
Business Day prior to the date of such prepayment, in the case of any
prepayment of Base Rate Loans, and which notice shall promptly be transmitted
by the Administrative Agent to each of the Lenders;

 

(b)           in the case of prepayment of any
Borrowings, each partial prepayment of any such Borrowing shall be in an
aggregate principal of at least $2,000,000 or an integral multiple of
$1,000,000 in excess thereof, in the case of Base Rate Loans, and at least
$1,000,000 or an integral multiple of $500,000 in excess thereof, in the case
of Eurodollar Loans;

 

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

 

(d)           each prepayment in respect of any
Loans made pursuant to a Borrowing shall be applied pro rata
among such Loans; and

 

 

(e)           each prepayment of Eurodollar Loans
pursuant to this Section 4.2 on any date other than the last day of the
Interest Period applicable thereto, in the case of Eurodollar Loans shall be
accompanied by any amounts payable in respect thereof under Section 2.7.

 

Section 4.3             Mandatory
Payments
and Prepayments.  The Loans shall be subject to mandatory
repayment or prepayment in accordance with the following provisions:

 

(a)           Mandatory Prepayment of Loans.  If on any date (after giving effect to any
other payments on such date) the aggregate outstanding principal amount of
Loans exceeds the Total Commitment as then in effect, then
the Borrower shall prepay on such date the principal amount of Loans in an
aggregate amount at least equal to such excess.

 

(b)           Particular Loans to be Prepaid.  With respect to each repayment or prepayment
of Loans required by this Section 4.3, the Borrower shall designate the
Types of Loans that are to be repaid or prepaid and the specific Borrowing(s)
pursuant to which such repayment or prepayment is to be made, provided that (i) the Borrower
shall first so designate all Loans that are Base Rate Loans and Eurodollar
Loans with Interest Periods ending on the date of repayment or prepayment prior
to designating any other Eurodollar Loans for repayment or prepayment, (ii) if the outstanding principal amount of Eurodollar
Loans made pursuant to a Borrowing is reduced below the applicable Minimum
Borrowing Amount as a result of any such repayment or prepayment, then all the
Loans outstanding pursuant to such Borrowing shall be Converted into Base Rate
Loans, and (iii) each repayment and prepayment of
any Loans made pursuant to a Borrowing shall be applied pro rata
among such Loans. In the absence of a designation by the Borrower as described
in the preceding sentence, the Administrative Agent shall, subject to the above,
make such designation in its sole discretion with a view, but no obligation, to
minimize breakage costs owing under Section 2.7. Any repayment or
prepayment of Eurodollar Loans pursuant to this Section 4.3 shall in all
events be accompanied by such compensation as is required by Section 2.7.

 

Section 4.4             Method and Place of Payment.

 

(a)           Except as otherwise specifically
provided herein, all payments under this Agreement shall be made to the
Administrative Agent for the ratable (based on its pro rata
share) account of the Lenders entitled thereto, not later than 12:00 noon
(local time at the Payment Office) on the date when due and shall be made at
the Payment Office in immediately available funds and in lawful money of the
United States of America, it being understood that written notice by the
Borrower to the Administrative Agent to make a payment from the funds in the
Borrower’s account at the Payment Office shall constitute the making of such
payment to the extent of such funds held in such account.  Any payments under this Agreement that are
made later than 12:00 noon (local time at the Payment Office) shall be deemed
to have been made on the next succeeding Business Day. Whenever any payment to
be made hereunder shall be stated to be due on a day that is not a Business
Day, the due date thereof shall be extended to the next succeeding Business Day
and, with respect to payments of principal, interest shall be payable during
such extension at the applicable rate in effect immediately prior to such extension.

 

(b)           If at any time insufficient funds are
received by and available to the Administrative Agent to pay fully all amounts
of principal, interest and Fees then due hereunder and an Event of Default is
not then in existence, such funds shall be applied (i)
first, towards payment of interest and
Fees then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of interest and Fees then due to such parties, and (ii)  second, towards
payment of principal then due hereunder, ratably among the parties entitled
thereto in accordance with the amounts of principal then due to such parties.

 

 

Section 4.5             Net Payments.

 

(a)           All payments made by the Borrower
hereunder, under any Note or any other Credit Document, will be made without
setoff, counterclaim or other defense. 
Except as provided for in Section 4.5(b), all such payments will be
made free and clear of, and without deduction or withholding for, any present
or future taxes, levies, imposts, duties, fees, assessments or other charges of
whatever nature now or hereafter imposed by any jurisdiction or by any
political subdivision or taxing authority thereof or therein with respect to
such payments (but excluding any tax imposed on or measured by the net income
or net profits of a Lender pursuant to the laws of the jurisdiction under which
such Lender is organized or the jurisdiction in which the Applicable Lending
Office of such Lender is located or any subdivision thereof or therein) and all
interest, penalties or similar liabilities with respect to such non-excluded
taxes, levies imposts, duties, fees, assessments or other charges (all such
non-excluded taxes, levies, imposts, duties, fees assessments or other charges
being referred to collectively as “Taxes”).  If any Taxes are so levied or imposed, the
Borrower agrees to pay the full amount of such Taxes and such additional
amounts as may be necessary so that every payment by it of all amounts due
hereunder, under any Note or under any other Credit Document, after withholding
or deduction for or on account of any Taxes, will not be less than the amount
provided for herein or in such Note or in such other Credit Document.  Subject to Section 2.6(d), the Borrower
will furnish to the Administrative Agent within 45 days after the date the
payment of any Taxes (or any withholding or deduction on account thereof) is
made, certified copies of tax receipts, or other evidence satisfactory to the
Lender, evidencing such payment by the Borrower.  The Borrower will indemnify and hold harmless
the Administrative Agent and each Lender, and reimburse the Administrative
Agent or such Lender upon its written request, for the amount of any Taxes
levied against, imposed on, or paid by the Administrative Agent or any Lender
within 30 days of any written request therefor.

 

(b)           Each Lender that is not incorporated
under the laws of the United States of America or any State thereof (each a “Non-U.S.
Lender”) agrees to provide to the Borrower and the Administrative Agent on
or prior to the Closing Date, or in the case of a Lender that is an assignee or
transferee of an interest under this Agreement pursuant to Section 11.4
(unless the respective Lender was already a Lender hereunder immediately prior
to such assignment or transfer and such Lender is in compliance with the
provisions of this Section 4.5(b)), on the date of such assignment or
transfer to such Lender, and from time to time thereafter if required by the
Borrower or the Administrative Agent: (i) an
accurate and complete original signed copy of Internal Revenue Service
Form W-8BEN, W-8ECI, W-8EXP or W-8IMY (or successor, substitute or other
appropriate form and, in the case of Form W-8IMY, any related
documentation necessary to establish the claimed exemption) certifying to such
Lender’s entitlement to a complete exemption from U.S. withholding tax with
respect to payments to be made under this Agreement, any Note or any other
Credit Document, and (ii) in the case of a Lender seeking to qualify for
the portfolio interest exemption, a certificate in form and substance
acceptable to the Administrative Agent (any such certificate, an “Exemption
Certificate”) certifying to such Lender’s entitlement to such
exemption.  In addition, each Lender
agrees that from time to time after the Closing Date, when a lapse in time or
change in circumstances renders the previous certification obsolete or
inaccurate in any material respect, it will deliver to the Borrower and the
Administrative Agent a new accurate and complete original signed copy of the
applicable Internal Revenue Service Form, including any related documentation
or Exemption Certificate, and such other forms as may be required to confirm or
establish the entitlement of such Lender to a continued exemption from U.S.
withholding tax with respect to payments under this Agreement, any Note or any
other Credit Document.  Notwithstanding
anything to the contrary contained in Section 4.5(a), but subject to
Section 11.4(c) and the immediately succeeding sentence, (x) the
Borrower shall be entitled, to the extent it is required to do so by law, to
deduct or withhold Taxes imposed by the United States (or any political
subdivision or taxing authority thereof or therein) from interest, fees or
other amounts payable hereunder for the account of any Non-U.S. Lender that has
not provided to the Borrower such forms or such Exemption Certificate and
related

 

 

documentation that establish a complete exemption from
such deduction or withholding and (y) the Borrower shall not be obligated
pursuant to Section 4.5(a) to gross-up payments to be made to a Lender in
respect of Taxes imposed by the United States or any additional amounts with
respect thereto (I) to the extent such Taxes result from a Lender’s
failure to provide the Borrower the Internal Revenue Service forms required to
be provided to the Borrower pursuant to this Section 4.5(b) or
(II) to the extent that such forms do not establish a complete exemption
from withholding of such Taxes at the time the Lender first became a Lender
under this Agreement.  The Borrower
agrees to pay additional amounts and indemnify each Lender in the manner set
forth in Section 4.5(a) (without regard to the identity of the
jurisdiction requiring the deduction or withholding) in respect of any Taxes
deducted or withheld by it as a result of any changes after the Closing Date in
any applicable law, treaty, governmental rule, regulation, guideline or order,
or in the interpretation thereof, relating to the deducting or withholding of
income or similar Taxes.

 

(c)           The Borrower will indemnify and hold
harmless the Administrative Agent and each Lender, and reimburse each upon its
written request within 30 days thereof, for the amount of any documentary,
excise, stamp, property or other similar taxes, duties, fees, assessments or
other charges imposed with respect to the execution, delivery, filing or
enforcement of any Credit Document.

 

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

 

(e)           If the Borrower is required to pay
additional amounts to the Administrative Agent or any Lender pursuant to this
Section 4.5, then the Administrative Agent or such Lender shall use reasonable
efforts (consistent with legal and regulatory restrictions) to change the
jurisdiction of its office, branch, subsidiary or affiliate, or take other
appropriate action, so as to eliminate any additional payment by the Borrower
that may thereafter accrue, if such change or other action, in the judgment of
the Administrative Agent or such Lender, as the case may be, is not otherwise
disadvantageous to the Administrative Agent or such Lender.

 

ARTICLE
V.

CONDITIONS PRECEDENT

 

Section 5.1             Conditions Precedent at Closing Date. 
This Agreement shall become effective upon the satisfaction of each of
the following conditions:

 

(a)           Credit Agreement.  This Agreement shall have been executed by
the Borrower, the Administrative Agent and each of the Lenders.

 

(b)           Notes.  The Borrower shall have executed and
delivered to the Administrative Agent a Note for the account of each Lender
that has requested a Note.

 

(c)           Fees and Expenses.  The Borrower shall have (i) executed and
delivered to the Administrative Agent the Agent Fee Letter and the Closing Fee
Letter and (ii) paid or caused to be paid

 

 

all Fees required to be paid by it on the Closing Date
pursuant to Section 3.1 and all reasonable fees and expenses of the
Administrative Agent and of special counsel to the Administrative Agent that
have been invoiced at least two Business Days prior to such date in connection
with the preparation, negotiation, execution and delivery of this Agreement and
the other Credit Documents and the consummation of the transactions
contemplated hereby and thereby.

 

(d)           Corporate Resolutions and
Approvals.  The Administrative Agent
shall have received certified copies of the resolutions of the Board of
Directors of the Borrower, approving the Credit Documents, and of all documents
evidencing other necessary corporate action, governmental approvals, if any,
and other consents or approvals with respect to the execution, delivery and
performance by the Borrower of the Credit Documents.

 

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

 

(f)            Corporate Charter and Good
Standing Certificates.  The
Administrative Agent shall have received: 
(i) an original certified copy of the Articles of Incorporation of the
Borrower and any and all amendments and restatements thereof, certified as of a
recent date by the relevant Secretary of State and certified by the Secretary
or an Assistant Secretary of the Borrower as being true, correct and complete
and in full force and effect as of the Closing Date; (ii) the code of
regulations of the Borrower and any and all amendments and restatements thereof
certified by the Secretary or an Assistant Secretary of the Borrower as being
true, correct, and complete and in full force and effect as of the Closing
Date; and (iii) an original good standing certificate from the Secretary of
State of the state of incorporation, dated as of a recent date, certifying as
to the good standing of the Borrower.

 

(g)           Opinions of Counsel.  The Administrative Agent shall have received
opinions of counsel, which shall be addressed to the Administrative Agent and
each of the Lenders and dated the Closing Date, from the General Counsel of the
Borrower, in substantially the form of Exhibit F.

 

(h)           Existing Credit Agreement.  The Borrower shall have terminated the
commitments of the lenders under each of the Existing Credit Agreement, repaid
any borrowings thereunder and terminated or released all Liens granted in
connection therewith and provided evidence, in form and substance satisfactory
to the Administrative Agent, of the same to the Administrative Agent.

 

(i)            Financial Statements.  The Administrative Agent and the Lenders
shall have received the financial statements referred to in Section 6.7(a),
which financial statements shall be acceptable to the Administrative Agent and
the Lenders.

 

(j)            Borrower’s Closing Certificate.  The Administrative Agent shall have received
a certificate in the form attached hereto as Exhibit D, dated the
Closing Date, of an Authorized Officer of the Borrower to the effect that, at
and as of the Closing Date and both before and after giving effect to the initial
Borrowings hereunder, if any, on the Closing Date, and the application of the
proceeds thereof:  (i) all
conditions set forth in Section 5.1 have been satisfied; (ii) no Default
or Event of Default has occurred or is continuing; and (iii) all representations
and warranties of the Borrower contained herein or in the other Credit
Documents are true and correct in all material respects with the same effect as
though such representations and warranties had been made on and as of the
Closing Date, except that as to any such representations and warranties that
expressly relate to an earlier specified date, such representations and
warranties are only represented as having been true and correct in all material
respects as of the date when made.

 

 

Section 5.2             Conditions Precedent to the Making of Loans.

 

(a)           The obligations of the Lenders to
make each Loan are subject, at the time thereof, to the satisfaction of the
following conditions:

 

(i)            Notice
of Borrowing, Continuation or Conversion. 
The Administrative Agent shall have received a Notice of Borrowing,
Continuation or Conversion meeting the requirements of Section 2.2 with
respect to the Borrowing of a Loan.

 

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

 

(b)           The acceptance of the benefits of
each Loan shall constitute a representation and warranty by the Borrower to
each of the Lenders that all of the applicable conditions specified in
Sections 5.1 and 5.2 have been satisfied as of the times referred to in
such Sections.  All of the certificates,
legal opinions and other documents and papers referred to in this
Article V, unless otherwise specified, shall be delivered to the
Administrative Agent for the account of each of the Administrative Agent and
the Lenders and, except for the Notes, in sufficient counterparts for the
Administrative Agent and the Lenders, and the Administrative Agent will
promptly distribute to the Lenders their respective Notes and the copies of
such other certificates, legal opinions and documents.

 

Section 5.3             Conditions Precedent to the Conversion or
Continuation of Loans.  The obligations of the Lenders
to Convert or Continue any Loan are subject, at the time thereof, to the
receipt by the Administrative Agent of a Notice of Borrowing, Continuation or
Conversion meeting the requirements of Section 2.2 with respect to the
Conversion or Continuation, as applicable, of a Loan.

 

ARTICLE
VI.

REPRESENTATIONS AND WARRANTIES

 

To induce the Lenders to enter into this Agreement and
to make the Loans, the Borrower makes the following representations and
warranties to, and agreements with, the Lenders, all of which shall survive the
execution and delivery of this Agreement and the making of each Loan:

 

Section 6.1             Corporate
Status.  Each of the Borrower and its
Subsidiaries (a) is a duly organized or formed and
validly existing corporation, partnership or limited liability company, as the
case may be, in good standing under the laws of the jurisdiction of its
formation and has the corporate, partnership or limited liability company power
and authority, as applicable, to own its Property and assets and to transact
the business in which it is engaged, and (b) has
been duly qualified and is authorized to do business in all jurisdictions where
it is required to be so qualified except where the failure to be so qualified
would not have a Material Adverse Effect. 
Each Subsidiary of the Borrower (and the direct and indirect ownership
interest of the Borrower therein) as of the date hereof and the jurisdiction of
incorporation of Borrower and each such Subsidiary as of the date hereof is
listed on Schedule 6.1.

 

 

Section 6.2             Corporate
Power and Authority.  The Borrower
has the corporate or other organizational power and authority to execute,
deliver and carry out the terms and provisions of the Credit Documents to which
it is party and has taken all necessary corporate or other organizational
action to authorize the execution, delivery and performance of the Credit
Documents to which it is party.  The
Borrower has duly executed and delivered each Credit Document to which it is
party and each Credit Document to which it is party constitutes the legal, valid
and binding agreement or obligation of the Borrower enforceable in accordance
with its terms, except to the extent that the enforceability thereof may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws generally affecting creditors’ rights and by equitable
principles (regardless of whether enforcement is sought in equity or at law).

 

Section 6.3             No
Violation.  Neither the execution,
delivery and performance by the Borrower of the Credit Documents to which it is
party nor compliance with the terms and provisions thereof
(a) will contravene any provision of any law, statute, rule,
regulation, order, writ, injunction or decree of any Governmental Authority
applicable to the Borrower or its properties and assets,
(b) will conflict with or result in any breach of, any of the
terms, covenants, conditions or provisions of, or constitute a default under,
or result in the creation or imposition of (or the obligation to create or
impose) any Lien upon any of the Property or assets of the Borrower pursuant to
the terms of any material promissory note, bond, debenture, indenture,
mortgage, deed of trust, credit or loan agreement, or any other agreement or
other instrument, to which the Borrower is a party or by which it or any of its
Property or assets are bound or to which it may be subject, or (c) will violate any provision of the certificate or
articles of incorporation, regulations or bylaws, or other charter documents of
the Borrower.

 

Section 6.4             Governmental Approvals.

 

(a)           Except as described in subsection (b)
below, no order, consent, approval, license, authorization, or validation of,
or filing, recording or registration with, or exemption by, any Governmental
Authority is required to authorize or is required as a condition to
(i) the execution, delivery and performance by the Borrower of any Credit
Document to which it is a party, or (ii) the legality, validity, binding effect
or enforceability of any Credit Document to which the Borrower is a party.

 

(b)           The Parent is a “public utility
holding company” within the meaning of PUHCA that is exempt from registration
and all other provisions thereof except for Sections 9(a)(2) and 32
thereof.  The Borrower is the only “subsidiary
company” or “affiliate” (within the meaning of PUHCA) of the Parent that is a “public
utility company” as defined in PUHCA.  No
report to or approval by the SEC under PUHCA is required for the incurrence of
Indebtedness or the execution and performance of the Credit Documents.  Other than the approval of The Public
Utilities Commission of Ohio, which approval is evidenced by a PUCO Order that
is in full force and effect, no further authorization or consent of any
Governmental Authority is legally required for the incurrence of Indebtedness
and/or the execution and performance of the Credit Documents by the Borrower.

 

Section 6.5             Litigation, etc.

 

(a)           There are no actions, suits or
proceedings pending or, to, the knowledge of the Borrower, threatened with
respect to the Borrower or any of its Subsidiaries (i) that
have, or could reasonably be expected to have, a Material Adverse Effect except
as set forth on Schedule 6.5, or (ii) that
question the validity or enforceability of any of the Credit Documents, or of
any action to be taken by any of the Borrower pursuant to any of the Credit
Documents.

 

(b)           No action, suit, proceeding or
investigation has been instituted, or to the knowledge of the Borrower or any
of its Subsidiaries, threatened, and no rule, regulation, order, judgment or
decree has

 

 

been issued or proposed to be issued by any
Governmental Authority that, solely as a result of the incurrence of
Indebtedness or the entering into this Agreement or any other Credit Document
or any transaction contemplated hereby or thereby, would cause or deem the
Administrative Agent or the Lenders or any Affiliate of any of them to be
subject to, or not exempted from, regulation under the FPA or PUHCA.

 

Section 6.6             Use of Proceeds; Margin Regulations.

 

(a)           The proceeds of all Loans will be
utilized to provide working capital and funds for general corporate and other
lawful purposes not inconsistent with the requirements of this Agreement
(including, without limitation, to backstop the issuance of commercial paper).

 

(b)           The Borrower is not engaged in the
business of extending credit for the purpose of purchasing or carrying any
Margin Stock.  At no time would more than
25% of the value of the assets of the Borrower or its consolidated Subsidiaries
that are subject to any “arrangement” (as such term is used in
Section 221.2(g) of such Regulation U) hereunder be represented by Margin
Stock.

 

Section 6.7             Financial Statements.  The Borrower has furnished to the
Lenders and the Administrative Agent complete and correct copies of (a) the audited consolidated balance sheets of the
Borrower and its consolidated Subsidiaries as of December 31, 2003 and
December 31, 2004 and the related audited consolidated statements of income,
shareholders’ equity, and cash flows of the Borrower and its consolidated
Subsidiaries for the fiscal years then ended, accompanied by the report thereon
of KPMG LLP; and (b) the condensed consolidated
balance sheets of the Borrower and its consolidated Subsidiaries as of March
31, 2005, and the related condensed consolidated statements of income and of
cash flows of the Borrower and its consolidated Subsidiaries for the fiscal
period then ended.  All such financial
statements have been prepared in accordance with GAAP, consistently applied
(except as stated therein), and fairly present in all material respects the
financial position of the entities described in such financial statements as of
the respective dates indicated and the consolidated results of their operations
and cash flows for the respective periods indicated, subject in the case of any
such financial statements that are unaudited, to normal audit adjustments, none
of which shall be material.  As of the
Closing Date, the Borrower and its Subsidiaries do not have any material or
significant contingent liability (other than any liability incident to any
litigation, arbitration or proceeding that could not reasonably be expected to
have a Material Adverse Effect) that is not reflected in the foregoing
financial statements or the notes thereto in accordance with GAAP.

 

Section 6.8             Solvency.  The Borrower
is not insolvent as defined in any applicable state or federal statute, nor
will the Borrower be rendered insolvent by the execution and delivery of this
Agreement or any of the Credit Documents to the Administrative Agent and the
Lenders.

 

Section 6.9             No
Material
Adverse Change.  At no time during the period from December
31, 2004 through the date of this Agreement has there been a change in the
financial or other condition, business, affairs or prospects of the Borrower
and its Subsidiaries taken as a whole, or their properties and assets
considered as an entirety, except for changes none
of which, individually or in the aggregate, has had or could reasonably be
expected to have, a Material Adverse Effect.

 

Section 6.10           Tax
Returns
and Payments.  The Borrower and each of its Subsidiaries has
filed all federal income tax returns and all other material tax returns,
domestic and foreign, required to be filed by it and has paid all material
taxes and assessments payable by it that have become due, other than those not
yet delinquent and except for those contested in good faith.  The Borrower and each of its Subsidiaries has
established on its books such charges, accruals and reserves in respect of
taxes, assessments, fees and other governmental charges for all fiscal periods
as are required by GAAP.  The Borrower
does not know

 

 

of any proposed assessment for additional federal,
foreign or state taxes for any period, or of any basis therefor, that,
individually or in the aggregate, taking into account such charges, accruals
and reserves in respect thereof as the Borrower and its Subsidiaries have made,
could reasonably be expected to have a Material Adverse Effect.

 

Section 6.11           Title
to Properties. 
The Borrower and each of its Subsidiaries has good and marketable title,
in the case of Real Property, and good title (or valid Leaseholds, in the case
of any leased Property), in the case of all other Property, to all of its
material properties and assets free and clear of Liens other than Liens permitted
under Section 8.3.  The interests of the
Borrower and each of its Subsidiaries in the properties reflected in the most
recent balance sheet referred to in Section 6.7, taken as a whole, were
sufficient, in the judgment of the Borrower, as of the date of such balance
sheet for purposes of the ownership and operation of the businesses conducted
by the Borrower and such Subsidiaries.

 

Section 6.12           Lawful
Operations;
Compliance with Agreements.  The Borrower
and each of its Subsidiaries:  (a) holds
all necessary federal, state and local governmental licenses, registrations,
certifications, permits and authorizations necessary to conduct its business; (b) is in full compliance with all material
requirements imposed by law, regulation or rule, whether federal, state or
local, that are applicable to it, its operations, or its properties and assets,
including without limitation, applicable requirements of Environmental Laws;
and (c) is in full compliance with all material terms, covenants and
conditions of any promissory note, bond, debenture, indenture, mortgage, deed
of trust, credit or loan agreement, or any other agreement or other instrument,
to which it is a party or by which it or any of its Property or assets are
bound or to which it may be subject, except in the case of clause (a), (b) or
(c) of this Section 6.12 for any failure to obtain and maintain in effect, or
noncompliance, that, individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect.

 

Section 6.13           Environmental Matters.  The Borrower and each of its
Subsidiaries is in compliance with all Environmental Laws governing its
business, except to the extent that any such failure to comply (together with
any resulting penalties, fines or forfeitures) would not reasonably be expected
to have a Material Adverse Effect.  All
licenses, permits, registrations or approvals required for the conduct of the
business of the Borrower and each of its Subsidiaries under any Environmental
Law have been secured and the Borrower and each of its Subsidiaries is in
substantial compliance therewith, except for such licenses, permits,
registrations or approvals the failure to secure or to comply therewith is not
reasonably likely to have a Material Adverse Effect.  Neither the Borrower nor any of its
Subsidiaries has received written notice, or otherwise knows, that it is in any
respect in noncompliance with, breach of or default under any applicable writ,
order, judgment, injunction, or decree to which the Borrower or such Subsidiary
is a party or that would affect the ability of the Borrower or such Subsidiary
to operate any Real Property and no event has occurred and is continuing that,
with the passage of time or the giving of notice or both, would constitute
noncompliance, breach of or default thereunder, except in each such case, such
noncompliance, breaches or defaults as would not reasonably be expected to, in
the aggregate, have a Material Adverse Effect. 
There are no Environmental Claims pending or, to the best knowledge of
the Borrower, threatened wherein an unfavorable decision, ruling or finding
would reasonably be expected to have a Material Adverse Effect.  There are no facts, circumstances, conditions
or occurrences on any Real Property now or at any time owned, leased or
operated by the Borrower or any of its Subsidiaries or on any Property adjacent
to any such Real Property, that are known by the Borrower or as to which the
Borrower or any such Subsidiary has received written notice, that could
reasonably be expected:  (i) to form the basis of an
Environmental Claim against the Borrower or any of its Subsidiaries or any Real
Property of the Borrower or any of its Subsidiaries; or
(ii) to cause such Real Property to be subject to any restrictions on
the ownership, occupancy, use or transferability of such Real Property under
any Environmental Law, except in each such case, such Environmental Claims or
restrictions that individually or in the aggregate would not reasonably be
expected to have a Material Adverse Effect.

 

Section 6.14                                ERISA.

 

(a)                                  As of the Closing Date, there are no
Unfunded Liabilities. Each Plan complies in all material respects with all
applicable requirements of law and regulations, no Reportable Event has
occurred with respect to any Plan, neither the Borrower nor any other member of
the Controlled Group has withdrawn from any Plan or initiated steps to do so,
and no steps have been taken to reorganize or terminate any Plan.

 

(b)                                 Neither the Borrower nor any of its
Subsidiaries is an entity deemed to hold “plan assets” within the meaning of 29
C.F.R. § 2510.3-101 of an employee benefit plan (as defined in Section 3(3) of
ERISA) which is subject to Title I of ERISA or any plan (within the meaning of Section 4975
of the Code), and neither the execution of this Agreement nor the making of
Loans hereunder gives rise to a prohibited transaction within the meaning of Section 406
of ERISA or Section 4975 of the Code.

 

Section 6.15                                Intellectual Property.  The Borrower
and each of its Subsidiaries has obtained or has the right to use all material
patents, trademarks, service marks, trade names, copyrights, licenses and other
rights with respect to the foregoing necessary for the present and planned
future conduct of its business, without any known conflict with the rights of
others, except for such patents, trademarks, service marks, trade names,
copyrights, licenses and rights, the loss of which, and such conflicts, that in
any such case individually or in the aggregate would not reasonably be expected
to have a Material Adverse Effect.

 

Section 6.16                                Investment Company Act; Federal Power Act; PUHCA. 
None of the Borrower or any of its Subsidiaries is subject to regulation
with respect to the creation or incurrence of Indebtedness under the Investment
Company Act of 1940, as amended.  None of
the Borrower or any of its Subsidiaries, or any Affiliate of any of them, is
subject to regulation under the FPA or PUHCA, or under applicable state or
other laws and regulations respecting the rates or the financial or organizational
regulation of electric utilities, as a result of the creation or incurrence of
the Obligations or the entering into this Agreement or any other Credit
Document or the consummation of any transaction contemplated hereby or thereby.

 

Section 6.17                                True and Complete Disclosure. 
All factual information (taken as a whole) heretofore or
contemporaneously furnished by or on behalf of the Borrower or any of its
Subsidiaries in writing to the Administrative Agent or any Lender for purposes
of or in connection with this Agreement or any transaction contemplated herein
is, and all other such factual information (taken as a whole) hereafter
furnished by or on behalf of such Person in writing to any Lender will be, true
and accurate in all material respects on the date as of which such information
is dated or certified and not incomplete by omitting to state any material fact
necessary to make such information (taken as a whole) not misleading at such
time in light of the circumstances under which such information was provided,
except that any such future information consisting of pro forma information and
financial projections prepared by the Borrower is only represented herein as
being based on good faith estimates and assumptions believed by such Persons to
be reasonable at the time made, it being recognized by the Lenders that such
projections as to future events are not to be viewed as facts and that actual
results during the period or periods covered by any such projections may differ
materially from the projected results.

 

ARTICLE VII.

AFFIRMATIVE COVENANTS

 

The Borrower hereby
covenants and agrees that on the Closing Date and thereafter so long as this
Agreement is in effect and until such time as the Total Commitment has been
terminated, no Notes

 

 

remain outstanding
and the Loans, together with interest, Fees and all other Obligations incurred
hereunder and under the other Credit Documents, have been paid in full:

 

Section 7.1                                      Reporting Requirements.

 

The Borrower will furnish
to each Lender and the Administrative Agent:

 

(a)                                  Annual Financial Statements. 
As soon as available and in any event within 90 days after the close of
each fiscal year of the Borrower, commencing with the fiscal year ending December 31,
2005, the consolidated and consolidating balance sheets of the Borrower and its
consolidated Subsidiaries as at the end of such fiscal year and the related
consolidated and consolidating statements of income, of stockholders’ equity
and of cash flows for such fiscal year, in each case setting forth comparative
figures for the preceding fiscal year, all in reasonable detail and accompanied
by an opinion with respect to such consolidated financial statements of
independent public accountants of recognized national standing selected by the
Borrower, which opinion shall be unqualified and shall (i) state
that such accountants audited such consolidated financial statements in
accordance with generally accepted auditing standards, that such accountants
believe that such audit provides a reasonable basis for their opinion, and that
in their opinion such consolidated financial statements present fairly, in all
material respects, the consolidated financial position of the Borrower and its
consolidated Subsidiaries as at the end of such fiscal year and the consolidated
results of their operations and cash flows for such fiscal year in conformity
with generally accepted accounting principles, or (ii) contain
such statements as are customarily included in unqualified reports of
independent accountants in conformity with the recommendations and requirements
of the American Institute of Certified Public Accountants (or any successor
organization).

 

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

 

(c)                                  Officer’s Compliance Certificates. 
At the time of the delivery of the financial statements provided for in
Sections 7.1(a) and (b), a Compliance Certificate signed by an
Authorized Officer, which shall include calculations of the financial covenants
set forth in Section 8.5.

 

(d)                                 Notice of Default, Litigation or Material
Adverse Effect.  Promptly, and in any event within three
Business Days, in the case of clause (i) below, or five Business Days,
after the Borrower or any of its Subsidiaries obtains knowledge thereof, notice
of (i) the occurrence of any event that constitutes a Default or Event of
Default, which notice shall specify the nature thereof, the period of existence
thereof and what action the Borrower has taken or proposes to take with respect
thereto, and (ii) the commencement of, or any other material development
concerning, any litigation, governmental or regulatory proceeding pending
against the Borrower or any of its Subsidiaries, or any other event that could
reasonably be expected to have a Material Adverse Effect.

 

(e)                                  ERISA.  As soon as
possible and in any event within ten days after the Borrower knows that any
Reportable Event has occurred with respect to any Plan, a statement, signed by
an Authorized Officer, describing such Reportable Event and the action that the
Borrower proposes to take with respect thereto.

 

 

(f)                                    Single Employer Plans. Within 270 days after the close of each
fiscal year of the Borrower, the Borrower will deliver to each of the Lenders a
statement of the Unfunded Liabilities, certified as correct by an actuary
enrolled under ERISA.

 

(g)                                 Environmental Notices. 
Promptly, and in any event within 10 days after receipt thereof by the
Borrower or any Subsidiary of the Borrower, a copy of (a) any notice or
claim to the effect that the Borrower or any of its Subsidiaries is or may be
liable to any Person as a result of the release by the Borrower, any of its
Subsidiaries, or any other Person of any Hazardous Materials into the
environment, and (b) any notice alleging any violation of any
Environmental Law by the Borrower or any of its Subsidiaries, which in the case
of either (a) or (b) above could reasonably be expected to have a
Material Adverse Affect.

 

(h)                                 Annual and Quarterly Reports, Proxy
Statements and other Reports Delivered to Stockholders Generally. 
Promptly after transmission thereof to its stockholders, copies of all
annual, quarterly and other reports and all proxy statements that the Borrower
furnishes to its stockholders generally.

 

(i)                                     Other Information. 
Promptly, but in any event within 10 Business Days upon request
therefor, such other information or documents (financial or otherwise) relating
to the Borrower or any of its Subsidiaries as the Administrative Agent or any
Lender (through the Administrative Agent) may reasonably request from time to
time.

 

Section 7.2                                      Books, Records and Inspections. 
The Borrower will, and will cause each of its Subsidiaries to, (a) keep proper books of record and account, in
which full and correct entries shall be made of all financial transactions and the
assets and business of the Borrower or such Subsidiaries, as the case may be,
in accordance with GAAP; and (b) permit, upon
at least two Business Days’ notice to the Chief Financial Officer of the
Borrower, officers and designated representatives of the Administrative Agent
or any of the Lenders to visit and inspect any of the properties or assets of
the Borrower and any of its Subsidiaries in whomsoever’s possession (but only
to the extent the Borrower or such Subsidiary has the right to do so to the extent
in the possession of another Person), to examine the books of account of the
Borrower and any of its Subsidiaries, and make copies thereof and take extracts
therefrom, and to discuss the affairs, finances and accounts of the Borrower
and of any of its Subsidiaries with, and be advised as to the same by, its and
their officers and independent accountants and independent actuaries, if any,
all at such reasonable times and intervals and to such reasonable extent as the
Administrative Agent or any of the Lenders may request. All costs and expenses
incurred by the Administrative Agent or any Lender in connection with any of
the foregoing shall be paid by the Administrative Agent or such Lender, as the
case may be, unless an Event of Default shall have occurred and be continuing
at the time such costs and/or expenses are incurred, in which case all such
costs and expenses shall be paid by the Borrower.

 

Section 7.3                                      Insurance.  The Borrower
will, and will cause each of its Subsidiaries to, (i) maintain
insurance coverage by such insurers and in such forms and amounts and against
such risks as are generally consistent with the insurance coverage maintained
by the Borrower and its Subsidiaries at the date hereof, and (ii) forthwith upon any Lender’s written request,
furnish to such Lender such information about such insurance as such Lender may
from time to time reasonably request, which information shall be prepared in
form and detail satisfactory to such Lender and certified by an Authorized
Officer.

 

Section 7.4                                      Payment of Taxes and Claims. 
The Borrower will pay and discharge, and will cause each of its
Subsidiaries to pay and discharge, all taxes, assessments and governmental
charges or levies imposed upon it or upon its income or profits, or upon any
properties belonging to it, prior to the

 

 

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

 

Section 7.5                                      Preservation of Existence, etc. 
The Borrower will, and will cause each of its Subsidiaries to, (a) preserve,
renew and maintain in full force and effect its legal existence and good
standing under the laws of the jurisdiction of its organization except in a
transaction permitted by Section 8.2; (b) take all reasonable action
to maintain all rights, privileges, permits, licenses and franchises necessary
or desirable in the normal conduct of its business, except to the extent that
failure to do so could not reasonably be expected to have a Material Adverse
Effect; and (c) preserve or renew all of its registered patents,
trademarks, trade names and service marks, the non-preservation of which could
reasonably be expected to have a Material Adverse Effect.

 

Section 7.6                                      Good Repair.  The Borrower
will, and will cause each of its Subsidiaries to, ensure that its material
properties and equipment used or useful in its business in whomsoever’s
possession they may be, are kept in good repair, working order and condition,
normal wear and tear excepted, and that from time to time there are made in
such properties and equipment all needful and proper repairs, renewals,
replacements, extensions, additions, betterments and improvements, thereto, to
the extent and in the manner customary for companies in similar businesses.

 

Section 7.7                                      Compliance with Statutes, Regulations, Orders,
Restrictions.  The Borrower will, and will cause each of its
Subsidiaries to, comply, in all material respects, with all applicable
statutes, regulations and orders of, and all applicable restrictions imposed
by, all Governmental Authorities, in respect of the conduct of its business and
the ownership of its Property, including, without limitation, ERISA and all
applicable Environmental Laws other than those the noncompliance with which
would not have, and that would not be reasonably expected to have, a Material
Adverse Effect.

 

Section 7.8                                      Fiscal Years, Fiscal Quarters. 
The Borrower shall not change any of its or any of its Subsidiaries’
fiscal years or fiscal quarters (other than the fiscal year or fiscal quarters
of a Person that becomes a Subsidiary, made at the time such Person becomes a
Subsidiary to conform to the Borrower’s fiscal year and fiscal quarters).

 

Section 7.9                                      Use of Proceeds.  The Borrower
will, and will cause each of its Subsidiaries to, use the proceeds of all Loans
for working capital and for general corporate and other lawful purposes not
inconsistent with the requirements of this Agreement (including, without
limitation, to backstop the issuance of commercial paper).

 

Section 7.10                                Senior Debt.  The Borrower
will at all times ensure that (a) the claims of
the Lenders in respect of the Obligations of the Borrower will not be
subordinate to, and will in all respects rank at least pari passu
with or senior to the claims of every unsecured creditor of the Borrower, and (b) any Indebtedness of the Borrower that is
subordinated in any manner to the claims of any other creditor of the Borrower
will be subordinated in like manner to such claims of the Lenders.

 

 

ARTICLE VIII.

NEGATIVE COVENANTS

 

The Borrower hereby
covenants and agrees that on the Closing Date and thereafter for so long as
this Agreement is in effect and until such time as the Total Commitment has
been terminated, no Notes remain outstanding and the Loans, together with
interest, Fees and all other Obligations incurred hereunder and under the other
Credit Documents, have been paid in full:

 

Section 8.1                                      Changes in Business.  Neither the
Borrower nor any of its Subsidiaries will engage in any business if, as a
result, the general nature of the business, taken on a consolidated basis, that
would then be engaged in by the Borrower and its Subsidiaries, would be
substantially changed from the general nature of the business engaged in by the
Borrower and its Subsidiaries on the Closing Date.

 

Section 8.2                                      Merger, Consolidation, Asset Sales. 
The Borrower will not, and will not permit any of its Subsidiaries to, (a) wind
up, liquidate or dissolve its affairs, (b) enter into any transaction of
merger or consolidation, (c) make or otherwise effect any Asset Sale, or (d) agree
to do any of the foregoing at any future time, except that the following shall
be permitted:

 

(i)                                     a Subsidiary of the Borrower may merge
with the Borrower, provided that
the surviving Person in any such merger shall be the Borrower;

 

(ii)                                  any Subsidiary of the Borrower may merge
with another Subsidiary of the Borrower;

 

(iii)                               any Subsidiary of the Borrower may merge with any
Person (other than the Borrower or any other Subsidiary of the Borrower), provided that (A) the surviving Person in any such
merger shall be such Subsidiary and (B) immediately before and after such
merger there shall not exist any Default or Event of Default;

 

(iv)                              the Borrower may merge with any Person
(other than a Subsidiary of the Borrower), provided that (A) the
surviving Person in any such merger shall be the Borrower and (B) immediately
before and after such merger there shall not exist any Default or Event of
Default;

 

(v)                                 any Subsidiary of the Borrower may make
or effect any Asset Sale to the Borrower or another Wholly-Owned Subsidiary of
the Borrower;

 

(vi)                              the Borrower may wind up, voluntarily
liquidate or dissolve any Subsidiary if (A) such Subsidiary is not a “Significant
Subsidiary” (as defined in Regulation S-X under the 1933 Act), and (B) the
winding up, voluntary liquidation or dissolution of such Subsidiary will not
result in an Event of Default hereunder or otherwise have a Material Adverse
Effect;

 

(vii)                           in addition to any Asset Sale permitted pursuant to
any other subpart in this Section 8.2, the Borrower and its Subsidiaries
may make or effect other Asset Sales so long as (A) the aggregate amount
(based upon the fair market value of the assets) of all Property sold or
otherwise disposed pursuant to all such Asset Sales on and after the Closing
Date does not constitute a Substantial Portion of the Property of the Borrower
and its Subsidiaries at the time of and after giving effect to any such Asset
Sale and (B) at least 80% of the total consideration received by the
Borrower or any of its Subsidiaries, as applicable, for such Asset Sale or
series of Asset Sales consists of cash or Cash Equivalents;

 

 

(viii)                        the Borrower and its Subsidiaries shall be permitted
to create, incur, assume and suffer to exist Liens permitted pursuant to Section 8.3;
and

 

(ix)                                the Borrower and its Subsidiaries shall
be permitted to make and dispose of the Investments permitted pursuant to Section 8.4.

 

Section 8.3                                      Liens.  The Borrower
will not, and will not permit any of its Subsidiaries to, create, incur, assume
or suffer to exist any Lien upon or with respect to any Property or assets of
any kind (real or personal, tangible or intangible) of the Borrower or any such
Subsidiary whether now owned or hereafter acquired, or sell any such Property
or assets subject to an understanding or agreement, contingent or otherwise, to
repurchase such Property or assets (including, without limitation, sales of
accounts receivable or notes with or without recourse to the Borrower or any of
its Subsidiaries, other than for purposes of collection of delinquent accounts
in the ordinary course of business) or assign any right to receive income, or
file or permit the filing of any financing statement under the UCC or any other
similar notice of Lien under any similar recording or notice statute, except
that the foregoing restrictions shall not apply to:

 

(a)                                  the Standard Permitted Liens;

 

(b)                                 Liens (i) in
existence on the Closing Date that are listed, and the Indebtedness secured
thereby and the Property subject thereto on the Closing Date described, on Schedule 8.3,
or (ii) arising out of the refinancing,
extension, renewal or refunding of any Indebtedness secured by any such Liens, provided that the principal amount of such Indebtedness is
not increased and such Indebtedness is not secured by any additional assets;

 

(c)                                  Liens on Property of the Borrower
securing the Borrower’s First Mortgage Bonds issued pursuant to the Indenture,
dated as of October 1, 1935, as amended, supplemented or otherwise
modified from time to time, between the Borrower and The Bank of New York;

 

(d)                                 Liens on Property of the Borrower in
connection with collateralized pollution control bonds;

 

(e)                                  any (i) Lien existing
on any Property at the time such Property is acquired by the Borrower or any of
its Subsidiaries or on any Property of any Person at the time such Person
becomes, or is merged into, a Subsidiary of the Borrower, provided
that (A) such Lien is not created in
contemplation of or in connection with such acquisition or such Person
becoming, or being merged into, such Subsidiary, as the case may be, (B) such Lien shall not attach or apply to any other
Property or assets of the Borrower or any of its Subsidiaries, and (C) such Lien shall secure only those
obligations that it secures on the date of such acquisition or the date such
Person becomes, or is merged into, such Subsidiary, as the case may be, and any
extension or refinancing thereof, so long as the aggregate principal amount so
extended or refinanced is not increased, and (ii) Lien securing
Indebtedness in respect of purchase money obligations for the acquisition,
lease, construction or improvement of fixed assets or Capital Lease
Obligations, provided that (A) such Lien
only attaches to such fixed assets being acquired, leased, constructed or
improved and (B) the Indebtedness secured by such Lien does not exceed the
cost or fair market value, whichever is lower, of the fixed assets being
acquired, leased, constructed or improved on the date of acquisition, lease,
construction or improvement; provided, however,
that the aggregate principal amount of Indebtedness at any time outstanding
secured by a Lien described in this subsection (e) shall not exceed
an amount equal to 5% of the Consolidated Tangible Assets at such time.

 

Section 8.4                                      Investments.  The Borrower
will not, and will not permit any of its Subsidiaries to, make or hold any
Investments, except (a) Investments held by the Borrower or any of its
Subsidiaries

 

 

in cash or Cash Equivalents; (b) Investments of
the Borrower in any of its Subsidiaries; (c) Investments of a Subsidiary
of the Borrower in the Borrower or another Subsidiary of the Borrower; (d) Permitted
Acquisitions; (e) Investments by the Borrower and its Subsidiaries in
account debtors received in connection with the bankruptcy or reorganization,
or in settlement of the delinquent obligations of financially troubled
suppliers or customers, in the ordinary course of business; (f) promissory
notes, earn-outs, other contingent payment obligations and other non-cash
consideration received by Borrower or any of its Subsidiaries as partial
payment of the total consideration of any Asset Sale made in accordance with Section 8.2(vii);
(g) loans and advances by the Borrower and its Subsidiaries to their
respective employees in an aggregate amount not to exceed $1,000,000, at any
time outstanding; (h) Investments comprised of the purchase of receivables
from other energy marketers as required from time to time by one or more
applicable Governmental Authorities; (i) other Investments held by the
Borrower or its Subsidiaries on the Closing Date that are listed on Schedule 8.4;
and (j) Investments by the Borrower and its Subsidiaries not otherwise
permitted under this Section 8.4 in an aggregate amount not to exceed
$5,000,000, at any time.

 

Section 8.5                                      Financial Covenant.  The Borrower
will not at any time permit the ratio of (i) Consolidated
Total Debt to (ii) Consolidated Total
Capitalization to exceed 0.65 to 1.00.

 

Section 8.6                                      Transactions with Affiliates. 
The Borrower will not, and will not permit any of its Subsidiaries to,
enter into any transaction or series of transactions with any Affiliate (other
than, in the case of the Borrower, any Subsidiary of the Borrower, and in the
case of a Subsidiary of the Borrower, the Borrower or another Subsidiary of the
Borrower) other than in the ordinary course of business of and pursuant to the
reasonable requirements of the Borrower’s or such Subsidiary’s business and
upon fair and reasonable terms no less favorable to the Borrower or such
Subsidiary than would be obtained in a comparable arm’s-length transaction with
a Person other than an Affiliate, except (i) sales
of goods to an Affiliate for use or distribution outside the United States that
in the good faith judgment of the Borrower complies with any applicable legal
requirements of the Code, or (ii) agreements
and transactions with and payments to officers, directors and shareholders that
are either (A) entered into in the ordinary
course of business and not prohibited by any of the provisions of this
Agreement, or (B) entered into outside the
ordinary course of business, approved by the directors or shareholders of the
Borrower, and not prohibited by any of the provisions of this Agreement.

 

Section 8.7                                      Material Agreements.  Neither the
Borrower nor any Subsidiary of the Borrower shall default in the performance,
observance or fulfillment of any of the obligations, covenants or conditions
contained in any agreement, instrument or other document to which the Borrower
or such Subsidiary, as applicable, is a party, which default could reasonably
be expected to have a Material Adverse Effect.

 

Section 8.8                                      Use of Proceeds/Margin Regulations. 
The Borrower will not, and will not permit any of its Subsidiaries to,
use any part of the proceeds of any Borrowing, directly or indirectly, to
purchase or carry Margin Stock, or to extend credit to others for the purpose
of purchasing or carrying any Margin Stock, in violation of any of the
provisions of Regulation T, U or X of the Board of Governors of the Federal
Reserve System.

 

Section 8.9                                      No Dividend Restrictions. 
The Borrower shall not permit any of its Subsidiaries to enter into any
agreement or otherwise create or cause or permit to exist or become effective
any consensual restriction limiting the ability (whether by covenant, event of
default or otherwise) of such Subsidiary to (i) pay dividends or make any
other distributions on shares of such Subsidiary’s capital stock held by the
Borrower or any other Subsidiary of the Borrower or (ii) pay any
obligation owed to the Borrower or any other Subsidiary of the Borrower, provided, however, that
this clause (ii) shall not apply to Permitted Restrictive Covenants.

 

 

Section 8.10                                Swap Agreements.  The Borrower
will not, and will not permit any of its Subsidiaries to, enter into any Swap
Agreement other than Swap Agreements pursuant to which the Borrower or such
Subsidiary has hedged its reasonably estimated interest rate, foreign currency
or commodity exposure, and not for speculative purposes.

 

ARTICLE IX.

EVENTS OF DEFAULT

 

Section 9.1                                      Events of Default.  Any of the
following specified events shall constitute an Event of Default (each an “Event
of Default”):

 

(a)                                  Payments:  the Borrower
shall (i) default in the payment when due
(whether at maturity, on a date fixed for a scheduled repayment, on a date on
which a required prepayment is to be made, upon acceleration or otherwise) of
any principal of the Loans; or (ii) default,
and such default shall continue for five or more days, in the payment when due
of any interest on the Loans or any Fees or any other amounts owing hereunder
or under any other Credit Document;

 

(b)                                 Representations: 
any representation, warranty or statement made by the Borrower herein or
in any other Credit Document (other than pursuant to Section 6.14(b)) or
in any statement or certificate delivered or required to be delivered pursuant
hereto or thereto shall prove to be untrue in any material respect on the date
as of which made or deemed made;

 

(c)                                  Certain Covenants: 
the Borrower shall default in the due performance or observance by it of
any term, covenant or agreement contained in Sections 7.1, 7.2(b), 7.5,
7.9, 7.10, 7.11 or Article VIII of
this Agreement;

 

(d)                                 Other Covenants: 
the Borrower shall default in the due performance or observance by it of
any term, covenant or agreement contained in this Agreement or any other Credit
Document, other than those referred to in Section 9.1(a), (b) or (c) above,
and such default is not remedied within 30 days after the
date on which the Borrower receives written notice of such default from
the Administrative Agent or any Lender (any such notice to be identified as a “notice
of default” and to refer specifically to this paragraph);

 

(e)                                  Cross Default Under Other Agreements: 
the Borrower or any of its Subsidiaries shall (i) default
in any payment with respect to any Indebtedness (other than the Obligations),
and all grace periods applicable to such payment shall have expired,  in an aggregate amount in excess of
$10,000,000, regardless of whether the holder or holders of said Indebtedness
(or a trustee or agent on behalf of such holder or holders) exercises its
rights, if any, to cause such Indebtedness to become due and payable prior to
its stated maturity; or (ii) default in the
observance or performance of any agreement or condition relating to any such
Indebtedness or contained in any instrument or agreement evidencing, securing
or relating thereto (and all grace periods applicable to such observance,
performance or condition shall have expired), or any other event shall occur or
condition exist, the effect of which default or other event or condition is to
cause, or to permit the holder or holders of such Indebtedness (or a trustee or
agent on behalf of such holder or holders) to cause any such Indebtedness to
become due prior to its stated maturity, or any such Indebtedness of the
Borrower or any of its Subsidiaries shall be declared to be due and payable, or
shall be required to be prepaid (other than by a regularly scheduled required
prepayment or redemption, prior to the stated maturity thereof); provided, however, that, in the case of any default under any such
agreement relating to any such Indebtedness in excess of $10,000,000 that has
occurred as a result of the failure of the Borrower to deliver its audited
annual financial statements for the fiscal year ended December 31, 2003,
such default shall not constitute an Event of Default under this subpart (e)

 

 

until the expiration of any
applicable grace periods under such agreement governing such Indebtedness in
excess of $10,000,000.

 

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

 

(g)                                 Judgments: 
one or more judgments, orders or decrees shall be entered against
the Borrower and/or any of its Subsidiaries involving a liability (other than a
liability covered by insurance, as to which the carrier has adequate claims
paying ability and has not effectively reserved its rights) of $10,000,000 or
more in the aggregate for all such judgments, orders and decrees for the
Borrower and its Subsidiaries, and any such judgments or orders or decrees
shall not have been vacated, discharged or stayed or bonded pending appeal
within 30 days from the entry thereof;

 

(h)                                 Bankruptcy:  any of the
following shall occur:

 

(i)                                     the Borrower or any of its Subsidiaries
(the Borrower and each such Subsidiary, each a “Principal Party”) shall
commence a voluntary case concerning itself under the Bankruptcy Code;

 

(ii)                                  an involuntary case is commenced against
any Principal Party under the Bankruptcy Code and the petition is not dismissed
within 60 days after commencement of the case;

 

(iii)                               a custodian (as defined in the Bankruptcy Code) is
appointed for, or takes charge of, a Substantial Portion of the Property of any
Principal Party;

 

(iv)                              any Principal Party commences (including
by way of applying for or consenting to the appointment of, or the taking of
possession by, a rehabilitator, receiver, custodian, trustee, conservator or
liquidator (collectively, a “conservator”) of itself or all or a
Substantial Portion of its Property) any other proceeding under any reorganization,
arrangement, adjustment of debt, relief of debtors, dissolution, insolvency,
liquidation, rehabilitation, conservatorship or similar law of any jurisdiction
whether now or hereafter in effect relating to such Principal Party;

 

(v)                                 any such proceeding of the type set forth
in clause (iv) above is commenced against any Principal Party to the
extent such proceeding is consented to by such Person or remains undismissed
for a period of 60 days;

 

(vi)                              any Principal Party is adjudicated
insolvent or bankrupt;

 

(vii)                           any order of relief or other order approving any such
case or proceeding is entered;

 

(viii)                        any Principal Party suffers any appointment of any
conservator or the like for it or any Substantial Portion of its Property that
continues undischarged or unstayed for a period of 60 days;

 

 

(ix)                                any Principal Party makes a general
assignment for the benefit of creditors;

 

(x)                                   any Principal Party generally does not
pay its debts as such debts become due; or

 

(xi)                                any corporate (or similar organizational)
action is taken by any Principal Party for the purpose of effecting any of the
foregoing;

 

(i)                                     ERISA: 
(i) the Unfunded Liabilities of all Single Employer Plans
shall exceed in the aggregate $20,000,000 or any Reportable Event that would
reasonably be expected to have a Material Adverse Effect shall occur in
connection with any Plan; (ii) the Borrower or any member of the
Controlled Group shall have been notified by the sponsor of a Multiemployer
Plan that it has incurred withdrawal liability to such Multiemployer Plan in an
amount that, when aggregated with all other amounts required to be paid to
Multiemployer Plans by the Borrower or any other member of the Controlled Group
as withdrawal liability (determined as of the date of such notification), exceeds
$10,000,000 or requires payment exceeding $10,000,000 per annum; or (iii) the
Borrower or any other member of the Controlled Group shall have been notified
by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in
reorganization or is being terminated, within the meaning of Title IV of ERISA,
if as a result of such reorganization or termination the aggregate annual
contribution of the Borrower and the other members of the Controlled Group
(taken as a whole) to all Multiemployer Plans that are then in reorganization
or being terminated have been or will be increased over the amounts contributed
to such Multiemployer Plans for the respective plan years of each such
Multiemployer Plan immediately preceding the plan in year in which the reorganization
or termination occurs by an amount exceeding $10,000,000; or

 

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

 

Section 9.2                                      Acceleration; Remedies.  Upon the
occurrence of any Event of Default, and at any time thereafter, if any Event of
Default shall then be continuing, the Administrative Agent shall, upon the
written request of the Required Lenders, by written notice to the Borrower,
take any or all of the following actions, without prejudice to the rights of
the Administrative Agent or any Lender to enforce its claims against the
Borrower in any manner permitted under applicable law:

 

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

 

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

 

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

 

provided that, if an Event of Default specified
in Section 9.1(h) (other than Section 9.1(h)(x)) shall occur,
the result that would occur upon the giving of written notice by the
Administrative Agent as specified in clauses (a) and/or (b) above
shall occur automatically without the giving of any such notice.

 

Section 9.3                                      Application of Liquidation Proceeds. 
All monies received by the Administrative Agent or any Lender from the
exercise of remedies hereunder or under the other Credit Documents or under any
other documents relating to this Agreement shall, unless otherwise required by
the terms of the other Credit Documents or by applicable law, be applied as
follows:

 

 

(a)                                  first, to the payment of all expenses (to the
extent not otherwise paid by the Borrower) incurred by the Administrative Agent
and the Lenders in connection with the exercise of such remedies, including,
without limitation, all reasonable costs and expenses of collection, reasonable
documented attorneys’ fees, court costs and any foreclosure expenses;

 

(b)                                 second, to the payment pro rata
of interest then accrued on the outstanding Loans;

 

(c)                                  third, to the payment pro rata
of any fees then accrued and payable to the Administrative Agent or any Lender
under this Agreement in respect of the Loans;

 

(d)                                 fourth, to the payment pro rata
of the principal balance then owing on the outstanding
Loans;

 

(e)                                  fifth, to the payment to the Lenders of any
amounts then accrued and unpaid under Sections 2.6, 2.7, and 4.5, and if
such proceeds are insufficient to pay such amounts in full, to the payment of
such amounts pro rata;

 

(f)                                    sixth, to the payment pro rata
of all other amounts owed by the Borrower to the Administrative Agent or any
Lender under this Agreement or any other Credit Document; and

 

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

 

ARTICLE X.

THE ADMINISTRATIVE AGENT

 

Section 10.1                                Appointment.  Each Lender
hereby irrevocably designates and appoints KeyBank as Administrative Agent to
act as specified herein and in the other Credit Documents, and each such Lender
hereby irrevocably authorizes KeyBank as the Administrative Agent for such
Lender, to take such action on its behalf under the provisions of this
Agreement and the other Credit Documents and to exercise such powers and
perform such duties as are expressly delegated to the Administrative Agent by
the terms of this Agreement and the other Credit Documents, together with such
other powers as are reasonably incidental thereto. The Administrative Agent
agrees to act as such upon the express conditions contained in this Article X.  Notwithstanding any provision to the contrary
elsewhere in this Agreement, the Administrative Agent shall not have any duties
or responsibilities, except those expressly set forth herein or in the other
Credit Documents, nor any fiduciary relationship with any Lender, and no
implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or otherwise exist against the
Administrative Agent.  The provisions of
this Article X are solely for the benefit of the Administrative Agent, and
the Lenders, and neither the Borrower nor any of its Subsidiaries shall have
any rights as a third party beneficiary of any of the provisions hereof.  In performing its functions and duties under
this Agreement, the Administrative Agent shall act solely as agent of the
Lenders and does not assume and shall not be deemed to have assumed any
obligation or relationship of agency or trust with or for the Borrower or any
of its Subsidiaries.

 

Section 10.2                                Delegation of Duties.  The
Administrative Agent may execute any of its duties under this Agreement or any
other Credit Document by or through agents or attorneys-in-fact and shall be
entitled to advice of counsel concerning all matters pertaining to such duties.
The Administrative Agent shall not be responsible for the negligence or
misconduct of any agents or attorneys-in-fact selected by it with reasonable
care except to the extent otherwise required by Section 10.3.

 

 

Section 10.3                                Exculpatory Provisions.  Neither the
Administrative Agent nor any of its respective officers, directors, employees,
agents, attorneys-in-fact or affiliates shall be (i) liable for any action
lawfully taken or omitted to be taken by it or such Person under or in
connection with this Agreement or any other Credit Document (except for its or
such Person’s own gross negligence or willful misconduct) or (ii) responsible
in any manner to any of the Lenders for any recitals, statements,
representations or warranties made by the Borrower or any of its Subsidiaries
or any of their respective officers contained in this Agreement, any other
Credit Document or in any certificate, report, statement or other document
referred to or provided for in, or received by the Administrative Agent under
or in connection with, this Agreement or any other Credit Document or for any
failure of the Borrower or any Subsidiary of the Borrower or any of their
respective officers to perform its obligations hereunder or thereunder.  The Administrative Agent shall not be under
any obligation to any Lender to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this
Agreement, or to inspect the properties, books or records of the Borrower or
any of its Subsidiaries.  The
Administrative Agent shall not be responsible to any Lender for the
effectiveness, genuineness, validity, enforceability, collectability or
sufficiency of this Agreement or any Credit Document or for any representations,
warranties, recitals or statements made herein or therein or made in any
written or oral statement or in any financial or other statements, instruments,
reports, certificates or any other documents in connection herewith or
therewith furnished or made by the Administrative Agent to the Lenders or by or
on behalf of the Borrower or any of its Subsidiaries to the Administrative
Agent or any Lender or be required to ascertain or inquire as to the
performance or observance of any of the terms, conditions, provisions,
covenants or agreements contained herein or therein or as to the use of the
proceeds of the Loans or of the existence or possible existence of any Default
or Event of Default.

 

Section 10.4                                Reliance by Administrative Agent. 
The Administrative Agent shall be entitled to rely, and shall be fully
protected in relying, upon any note, writing, resolution, notice, consent,
certificate, affidavit, letter, cablegram, telegram, e-mail or other electronic
transmission, facsimile transmission, telex or teletype message, statement,
order or other document or conversation believed by it, in good faith, to be
genuine and correct and to have been signed, sent or made by the proper Person
or Persons and upon advice and statements of legal counsel (including, without
limitation, counsel to the Borrower or any of its Subsidiaries), independent
accountants and other experts selected by the Administrative Agent.  The Administrative Agent shall be fully
justified in failing or refusing to take any action under this Agreement or any
other Credit Document unless it shall first receive such advice or concurrence
of the Required Lenders as it deems appropriate or it shall first be
indemnified to its satisfaction by the Lenders against any and all liability
and expense that may be incurred by it by reason of taking or continuing to
take any such action.  The Administrative
Agent shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement and the other Credit Documents in accordance with
a request of the Required Lenders (or all of the Lenders, or all of the Lenders
(other than any Defaulting Lender), as applicable, as to any matter that,
pursuant to Section 11.11, can only be effectuated with the consent of all
Lenders, or all Lenders (other than any Defaulting Lender), as the case may
be), and such request and any action taken or failure to act pursuant thereto
shall be binding upon all the Lenders.

 

Section 10.5                                Notice of Default.  The
Administrative Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default hereunder unless the
Administrative Agent has received notice from a Lender or the Borrower
referring to this Agreement, describing such Default or Event of Default and
stating that such notice is a “notice of default.” If the Administrative Agent
receives such a notice, the Administrative Agent shall give prompt notice
thereof to the Lenders.  The
Administrative Agent shall take such action with respect to such Default or Event
of Default as shall be reasonably directed by the Required Lenders, provided that unless and until the Administrative Agent
shall have received such directions, the Administrative Agent may (but shall
not be obligated to) take such action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable in the
best interests of the Lenders.

 

 

Section 10.6                                Non-Reliance.  Each Lender
expressly acknowledges that neither the Administrative Agent nor any of its
officers, directors, employees, agents, attorneys-in-fact or Affiliates have
made any representations or warranties to it and that no act by the
Administrative Agent hereinafter taken, including any review of the affairs of
the Borrower or any of its respective Subsidiaries, shall be deemed to
constitute any representation or warranty by the Administrative Agent to any
Lender.  Each Lender represents to the
Administrative Agent that it has, independently and without reliance upon the
Administrative Agent, or any other Lender, and based on such documents and
information as it has deemed appropriate, made its own appraisal of and
investigation into the business, assets, operations, property, financial and
other conditions, prospects and creditworthiness of the Borrower and its
respective Subsidiaries and made its own decision to make its Loans hereunder
and enter into this Agreement.  Each
Lender also represents that it will, independently and without reliance upon
the Administrative Agent, or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action under
this Agreement, and to make such investigation as it deems necessary to inform
itself as to the business, assets, operations, property, financial and other
conditions, prospects and creditworthiness of the Borrower and its
Subsidiaries.  The Administrative Agent
shall not have any duty or responsibility to provide any Lender with any credit
or other information concerning the business, operations, assets, property,
financial and other conditions, prospects or creditworthiness of the Borrower
or any of its Subsidiaries that may come into the possession of the Administrative
Agent or any of its officers, directors, employees, agents, attorneys-in-fact
or Affiliates.

 

Section 10.7                                Indemnification.  The Lenders
agree to indemnify the Administrative Agent and its Related Parties ratably
according to their respective Loans and Percentages of the Unutilized Total
Commitment, from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, reasonable expenses or
disbursements of any kind whatsoever that may at any time (including, without
limitation, at any time following the payment of the Obligations) be imposed
on, incurred by or asserted against the Administrative Agent or such Related
Party in any way relating to or arising out of this Agreement or any other
Credit Document, or any documents contemplated by or referred to herein or the
transactions contemplated hereby or any action taken or omitted to be taken by
the Administrative Agent or such Related Party under or in connection with any
of the foregoing, but only to the extent that any of the foregoing is not paid
by the Borrower, provided that no Lender shall be
liable to the Administrative Agent or such Related Party for the payment of any
portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements to the extent resulting
solely from the Administrative Agent’s or such Related Party’s gross negligence
or willful misconduct.  If any indemnity
furnished to the Administrative Agent or any Related Party for any purpose
shall, in the opinion of the Administrative Agent, be insufficient or become
impaired, the Administrative Agent may call for additional indemnity and cease,
or not commence, to do the acts indemnified against until such additional
indemnity is furnished.  The agreements
in this Section 10.7 shall survive the payment of all Obligations.

 

Section 10.8                                The Administrative Agent in Individual Capacity. 
The Administrative Agent and its Affiliates may make loans to, accept
deposits from and generally engage in any kind of business with the Borrower,
its Subsidiaries and their Affiliates as though not acting as Administrative
Agent hereunder.  With respect to the
Loans made by it and all Obligations owing to it, the Administrative Agent
shall have the same rights and powers under this Agreement as any Lender and
may exercise the same as though it were not the Administrative Agent, and the
terms “Lender” and “Lenders” shall include the Administrative Agent in its
individual capacity.

 

Section 10.9                                Successor Administrative Agent. 
The Administrative Agent may resign at any time upon not less than 30
days notice to the Lenders and the Borrower. 
Upon receipt of any such notice of resignation, the Required Lenders
shall have the right to appoint a successor, provided
that, so long as

 

 

no Event of Default shall have occurred and be continuing, the Borrower
shall have the right to consent to any such successor Administrative Agent,
such consent not to be unreasonably withheld. 
If no such successor shall have been so appointed by the Required
Lenders and shall have accepted such appointment within 30 days after the
retiring Administrative Agent gives notice of its resignation, then the
retiring Administrative Agent may on behalf of the Lenders, appoint a successor
Administrative Agent, provided that
if the Administrative Agent shall notify the Borrower and the Lenders that no
such successor is willing to accept such appointment, then such resignation
shall nonetheless become effective in accordance with such notice and (i) the
retiring Administrative Agent shall be discharged from its duties and
obligations hereunder and under the other Credit Documents (except that in the
case of any collateral security held by the Administrative Agent on behalf of
the Lenders under any of the Credit Documents, the retiring Administrative
Agent shall continue to hold such collateral security for the benefit of the
Lenders until such time as a successor Administrative Agent is appointed) and (ii) all
payments, communications and determinations provided to be made by, to or
through the Administrative Agent shall instead be made by or to each Lender
directly, until such time as the Required Lenders (with the consent of the
Borrower, if applicable) appoint a successor Administrative Agent as provided
for above in this paragraph.  Upon the
acceptance of a successor’s appointment as Administrative Agent hereunder, such
successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring (or retired) Administrative Agent, and
the retiring Administrative Agent shall be discharged from all of its duties
and obligations hereunder or under the other Credit Documents (if not already
discharged therefrom as provided above in this paragraph).  The fees payable by the Borrower to a
successor Administrative Agent shall be the same as those payable to its
predecessor unless otherwise agreed between the Borrower and such
successor.  After the retiring
Administrative Agent’s resignation hereunder and under the other Credit
Documents, the provisions of this Article and Section 11.1 shall
continue in effect for the benefit of such retiring Administrative Agent, its
sub-agents and their respective Related Parties in respect of any actions taken
or omitted to be taken by any of them while the retiring Administrative Agent
was acting as Administrative Agent.

 

Section 10.10                          Other Agents.  Any Lender
identified herein as a Co-Agent, Syndication Agent, Documentation Agent,
Co-Documentation Agent, Managing Agent, Manager, Lead Arranger, Arranger or any
other corresponding title, other than “Administrative Agent,” shall have no
right, power, obligation, liability, responsibility or duty under this
Agreement or any other Credit Document except those applicable to all Lenders
as such. Each Lender acknowledges that it has not relied, and will not rely, on
any Lender so identified in deciding to enter into this Agreement or in taking
or not taking any action hereunder.

 

ARTICLE XI.

MISCELLANEOUS

 

Section 11.1                                Payment of Expenses.

 

(a)                                  Irrespective of whether the transactions
contemplated hereby are consummated, the Borrower agrees to pay (or reimburse
the Administrative Agent for) all reasonable out-of-pocket costs and expenses
of the Administrative Agent in connection with the negotiation, preparation,
syndication, administration and execution and delivery of the Credit Documents
and the documents and instruments referred to therein and the syndication of
the Commitments, including, without limitation, the reasonable fees and
disbursements of counsel to the Administrative Agent and its Affiliates.

 

(b)                                 The Borrower agrees to pay, or reimburse
the Administrative Agent for, all reasonable out-of-pocket costs and expenses
of the Administrative Agent in connection with any amendment, waiver,

 

 

consent or other modification of or relating to any of
the Credit Documents, including, without limitation, the reasonable fees and
disbursements of counsel to the Administrative Agent.

 

(c)                                  The Borrower agrees to pay, or reimburse
the Administrative Agent and the Lenders for, all reasonable out-of-pocket
costs and expenses of the Administrative Agent and the Lenders in connection
with the enforcement of any of the Credit Documents  or the other documents and instruments
referred to therein, including, without limitation, the
reasonable fees and disbursements of each counsel to the Administrative Agent
and any Lender (including allocated costs of internal counsel).

 

(d)                                 Without limitation of the preceding Section 11.1(c),
in the event of the bankruptcy, insolvency, rehabilitation or other similar
proceeding in respect of the Borrower or any of its Subsidiaries, the Borrower
agrees to pay all costs of collection and defense, including reasonable
attorneys’ fees in connection therewith and in connection with any appellate
proceeding or post-judgment action involved therein, which shall be due and
payable together with all required service or use taxes.

 

(e)                                  Without duplication of any of the
Borrower’s obligations under Section 4.5(c), the Borrower agrees to pay
and hold the Administrative Agent and each of the Lenders harmless from and
against any and all present and future stamp and other similar taxes with
respect to the foregoing matters and save the Administrative Agent and each of
the Lenders harmless from and against any and all liabilities with respect to
or resulting from any delay or omission (other than to the extent attributable
to any such indemnified Person) to pay such taxes.

 

(f)                                    The Borrower agrees to indemnify the
Administrative Agent, each Lender, and their respective Related Parties
(collectively, the “Indemnitees”) from and hold each of them harmless
against any and all losses, liabilities, claims, damages or expenses reasonably
incurred by any of them as a result of, or arising out of, or in any way
related to, or by reason of

 

(i)                                     any investigation, litigation or other
proceeding (whether or not any Lender is a party thereto) related to the
entering into and/or performance of any Credit Document or the use of the
proceeds of any Loans hereunder or the consummation of any transactions
contemplated in any Credit Document, other than any such investigation,
litigation or proceeding arising out of transactions solely between or among
one or more of the Lenders and/or the Administrative Agent, transactions solely
involving the assignment by a Lender of all or a portion of its Loans and
Commitments, or the granting of participations therein, as provided in this
Agreement, or arising solely out of any examination of a Lender by any regulatory
or other governmental authority having jurisdiction over it, or

 

(ii)                                  the actual or alleged presence of
Hazardous Materials in the air, surface water or groundwater or on the surface
or subsurface of any Real Property owned, leased or at any time operated by the
Borrower or any of its Subsidiaries, the release, generation, storage,
transportation, handling or disposal of Hazardous Materials at any location,
whether or not owned or operated by the Borrower or any of its Subsidiaries, if
the Borrower or any such Subsidiary could have or is alleged to have any
responsibility in respect thereof, the non-compliance of any such Real Property
with foreign, federal, state and local laws, regulations and ordinances
(including, without limitation, applicable permits thereunder) applicable
thereto, or any Environmental Claim asserted against the Borrower or any of its
Subsidiaries, in respect of any such Real Property,

 

including, in each case,
without limitation, the reasonable documented fees and disbursements of counsel
incurred in connection with any such investigation, litigation or other
proceeding (but excluding in each case under this clause (f) any such
losses, liabilities, claims, damages or expenses to the extent incurred

 

 

by reason of the gross
negligence or willful misconduct of the Person to be indemnified or of any
other Indemnitee who is such Person or an Affiliate of such Person). To the
extent that the undertaking to indemnify, pay or hold harmless any Person set
forth in the preceding sentence may be unenforceable because it is violative of
any law or public policy, the Borrower shall make the maximum contribution to
the payment and satisfaction of each of the indemnified liabilities that is
permissible under applicable law.

 

Section 11.2                                Right of Setoff.  In addition
to any rights now or hereafter granted under applicable law or otherwise, and
not by way of limitation of any such rights, upon the occurrence and during the
continuance of an Event of Default, each Lender is hereby authorized at any
time or from time to time, without presentment, demand, protest or other notice
of any kind to the Borrower or to any other Person, any such notice being
hereby expressly waived, to set off and to appropriate and apply any and all
deposits (general or special) and any other Indebtedness at any time held or
owing by such Lender (including, without limitation, by branches, agencies and
Affiliates of such Lender wherever located) to or for the credit or the account
of the Borrower against and on account of the Obligations and liabilities of
the Borrower to such Lender under this Agreement or under any of the other
Credit Documents, including, without limitation, all interests in Obligations
of the Borrower purchased by such Lender pursuant to Section 11.4(c), and
all other claims of any nature or description arising out of or connected with
this Agreement or any other Credit Document, irrespective of whether or not
such Lender shall have made any demand hereunder and although such Obligations,
liabilities or claims, or any of them, shall be contingent or unmatured.  Each Lender agrees promptly to notify the
Borrower after any such set off and application, provided,
however, that the failure to give such notice shall not affect the
validity of such set off and application.

 

Section 11.3                                Notices.

 

(a)                                  Generally.  Except in the
case of notices and other communications expressly permitted to be given by
telephone (and except as provided in subparagraph (c) below), all notices
and other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopier as follows:

 

(i)                                     if to the Borrower, to The Dayton Power
and Light Company, 1065 Woodman Drive, Dayton, Ohio  45432, Attention: John Gillen
(Telecopier No. (937) 259-7813; Telephone No. (937) 259-7210);

 

(ii)                                  if to the Administrative Agent, to
KeyBank National Association, 127 Public Square, Cleveland, Ohio 44114, Attention:
Yvette M. Dyson-Owens (Telecopier No. (216) 689-5962; Telephone
No.(216) 689-4358); and

 

(iii)                               if to a Lender, to it at its address (or telecopier
number) set forth on Annex I hereto or, in the case of any Lender
that becomes a party to this Agreement by way of assignment under Section 11.4
of this Agreement, to it at the address set forth in the Assignment Agreement
to which it is a party;

 

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

 

(c)                                  Electronic Communications. 
Notices and other communications to the Administrative Agent or any
Lender pursuant to Section 7.1(a), (b), (c), (h), (i) or (j) may be
delivered or furnished by

 

 

electronic communication (including e-mail and
Internet or intranet websites) pursuant to procedures approved by the
Administrative Agent.  The Administrative
Agent or the Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it, provided that approval of such procedures may be
limited to particular notices or communications. Unless the Administrative
Agent otherwise prescribes, (i) notices and other communications sent to
an e-mail address shall be deemed received upon the sender’s receipt of an
acknowledgement from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other written
acknowledgement), provided that if such notice or
other communication is not sent during the normal business hours of the
recipient, such notice or communication shall be deemed to have been sent at
the opening of business on the next business day for the recipient, and (ii) notices
or communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that
such notice or communication is available and identifying the website address
therefor.

 

(d)                                 Change of Address. 
Any party hereto may change its address or telecopier number for notices
and other communications hereunder by notice to each of the other parties
hereto.

 

Section 11.4                                Benefit of Agreement.

 

(a)                                  Successors and Assigns Generally. 
This Agreement shall be binding upon and inure to the benefit of and be
enforceable by the parties hereto and their respective successors and assigns, provided that the Borrower may not assign or transfer any of
its rights or obligations hereunder without the prior written consent of all
the Lenders (other than any Defaulting Lender), and, provided,
further, that any assignment by a Lender of its rights and
obligations hereunder shall be effected in accordance with Section 11.4(c).

 

(b)                                 Participations. 
Notwithstanding the foregoing, each Lender may at any time grant
participations in any of its rights hereunder or under any of the Notes to any
Person (other than the Borrower or any of its Affiliates or a natural Person), provided that in the case of any such participation,

 

(i)                                     the participant shall not have any rights
under this Agreement or any of the other Credit Documents, including, without
limitation, rights of consent, approval or waiver (the participant’s rights
against such Lender in respect of such participation to be those set forth in
the agreement executed by such Lender in favor of the participant relating
thereto),

 

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

 

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

 

(iv)                              such Lender shall remain the holder of
any Note for all purposes of this Agreement, and

 

(v)                                 the Borrower, the Administrative Agent,
and the other Lenders shall continue to deal solely and directly with the
selling Lender in connection with such Lender’s rights and obligations under
this Agreement, and all amounts payable by the Borrower hereunder shall be
determined as if such Lender had not sold such participation, except that the
participant shall be entitled to the benefits of Sections 2.6, 2.7 and 4.5
of this Agreement to the extent that such Lender would be entitled to such
benefits if the participation had not been entered into or sold

 

 

(provided that the participant shall only
be entitled to the benefits of Section 4.5 to the extent that it complies
with the requirements of that section as though it were a Lender),

 

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

 

(c)                                  Assignments by Lenders. 
Any Lender may assign all, or if less than all, a fixed portion, of its
Loans and/or Commitment and its rights and obligations hereunder to one or more
Eligible Assignees, each of which shall become a party to this Agreement as a
Lender by execution of an Assignment Agreement, provided
that

 

(i)                                     except in the case of (x) an assignment
of the entire remaining amount of the assigning Lender’s Loans and/or
Commitment or (y) an assignment to another Lender, an Affiliate of such Lender
or an Approved Fund with respect to such Lender, the aggregate amount of each
such assignment of such Commitment (which for this purpose includes the Loans
outstanding thereunder), shall not be less than $5,000,000 (or, if greater, in
integral multiples of $1,000,000),

 

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

 

(iii)                               upon surrender of the old Notes, if any, upon request
of the new Lender, new Notes will be issued, at the Borrower’s expense, to such
new Lender and to the assigning Lender, such new Notes to be in conformity with
the requirements of Section 2.4 (with appropriate modifications) to the
extent needed to reflect the revised Commitments,

 

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

 

and, provided
further, that such transfer or assignment will not be effective
until the Assignment Agreement in respect thereof is recorded by the
Administrative Agent on the Lender Register maintained by it as provided
herein.

 

To the extent of any
assignment pursuant to this Section 11.4(c) the assigning Lender
shall be relieved of its obligations hereunder with respect to its assigned
Commitments.

 

At the time of each
assignment pursuant to this Section 11.4(c) to a Person that is not
already a Lender hereunder and that is not a United States Person (as such term
is defined in Section 7701(a)(30) of the Code) for Federal income tax
purposes, the respective assignee Lender shall provide to the Borrower and the
Administrative Agent the appropriate Internal Revenue Service Forms (and, if
applicable, an

 

 

Exemption
Certificate) described in Section 4.5(b). 
To the extent that an assignment of all or any portion of a Lender’s
Commitment and related outstanding Obligations pursuant to this Section 11.4(c) would,
at the time of such assignment, result in increased costs under Section 4.5
from those being charged by the respective assigning Lender prior to such
assignment, then the Borrower shall not be obligated to pay such increased
costs (although the Borrower shall be obligated to pay any other increased
costs of the type described above resulting from changes after the date of the
respective assignment).

 

Nothing in this Section 11.4(c) shall
prevent or prohibit (i) any Lender that is a bank, trust company or other
financial institution from pledging its Notes or Loans to a Federal Reserve
Bank in support of borrowings made by such Lender from such Federal Reserve
Bank, or (ii) any Lender that is a trust, limited liability company,
partnership or other investment company from pledging its Notes or Loans to a
trustee or agent for the benefit of holders of certificates or debt securities
issued by it.  No such pledge, or any
assignment pursuant to or in lieu of an enforcement of such a pledge, shall
relieve the transferor Lender from its obligations hereunder.

 

(d)                                 No SEC Registration or Blue Sky
Compliance.  Notwithstanding any other provisions of this Section 11.4,
no transfer or assignment of the interests or obligations of any Lender
hereunder or any grant of participation therein shall be permitted if such
transfer, assignment or grant would require the Borrower to file a registration
statement with the SEC or to qualify the Loans under the “Blue Sky” laws of any
State.

 

(e)                                  Representations of Lenders. 
Each Lender initially party to this Agreement hereby represents, and
each Person that becomes a Lender pursuant to an assignment permitted by this Section 11.4
will, upon its becoming party to this Agreement, represent that it is a
commercial lender, other financial institution or other “accredited” investor
(as defined in SEC Regulation D) that makes or acquires loans in the ordinary
course of its business and that it will make or acquire Loans for its own
account in the ordinary course of such business, provided
that subject to the preceding Sections 11.4(b) and (c), the
disposition of any promissory notes or other evidences of or interests in
Indebtedness held by such Lender shall at all times be within its exclusive
control.

 

Section 11.5                                No Waiver; Remedies Cumulative. 
No failure or delay on the part of the Administrative Agent or any
Lender in exercising any right, power or privilege hereunder or under any other
Credit Document and no course of dealing between the Borrower and the
Administrative Agent or any Lender shall operate as a waiver thereof; nor shall
any single or partial exercise of any right, power or privilege hereunder or
under any other Credit Document preclude any other or further exercise thereof
or the exercise of any other right, power or privilege hereunder or
thereunder.  No notice to or demand on
the Borrower in any case shall entitle the Borrower to any other or further
notice or demand in similar or other circumstances or constitute a waiver of
the rights of the Administrative Agent or the Lenders to any other or further
action in any circumstances without notice or demand.  Without limiting the generality of the
foregoing, the making of a Loan shall not be construed as a waiver of any
Default or Event of Default, regardless of whether the Administrative Agent,
any Lender may have had notice or knowledge of such Default or Event of Default
at the time.  The rights and remedies herein
expressly provided are cumulative and not exclusive of any rights or remedies
that the Administrative Agent or any Lender would otherwise have.

 

Section 11.6                                Payments Pro Rata;
Sharing of Setoffs.

 

(a)                                  The Administrative Agent agrees that
promptly after its receipt of each payment from or on behalf of the Borrower in
respect of any Obligations, it shall distribute such payment to the Lenders
(other than any Lender that has expressly waived in writing its right to
receive its pro rata share thereof) pro rata based upon their respective shares, if any, of the
Obligations with respect to which such payment

 

 

was received. 
As to any such payment received by the Administrative Agent prior to
1:00 P.M. (local time at the Payment Office) in funds that are immediately
available on such day, the Administrative Agent will use all reasonable efforts
to distribute such payment in immediately available funds on the same day to
the Lenders as aforesaid.

 

(b)                                 Each of the Lenders agrees that, if it
should receive any amount hereunder (whether by voluntary payment, by
realization upon security, by the exercise of the right of setoff or banker’s
lien, by counterclaim or cross action, by the enforcement of any right under
the Credit Documents, or otherwise) that is applicable to the payment of the
principal of, or interest on, the Loans or Fees, of a sum that with respect to
the related sum or sums received by other Lenders is in a greater proportion
than the total of such Obligation then owed and due to such Lender bears to the
total of such Obligation then owed and due to all of the Lenders immediately
prior to such receipt, then such Lender receiving such excess payment shall
purchase for cash without recourse or warranty from the other Lenders an
interest in the Obligations to such Lenders in such amount as shall result in a
proportional participation by all of the Lenders in such amount, provided that (i) if all or
any portion of such excess amount is thereafter recovered from such Lender,
such purchase shall be rescinded and the purchase price restored to the extent
of such recovery, but without interest, and (ii) the
provisions of this Section 11.6(b) shall not be construed to apply to
any payment made by the Borrower pursuant to and in accordance with the express
terms of this Agreement, or any payment obtained by a Lender as consideration
for the assignment of or sale of a participation in any of its Loans to any
assignee or participant pursuant to Section 11.4, other than to the
Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of
this Section 11.6(b) shall apply). 
The Borrower consents to the foregoing and agrees, to the extent it may
effectively do so under applicable law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against the
Borrower rights of set-off and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of the Borrower in the amount
of such participation.

 

(c)                                  Notwithstanding anything to the contrary
contained herein, the provisions of the preceding Sections 11.6(a) and
(b) shall be subject to the express provisions of this Agreement that
require, or permit, differing payments to be made to Lenders that are not
Defaulting Lenders, as opposed to Defaulting Lenders.

 

(d)                                 If any Lender shall fail to make any
payment required to be made by it to the Administrative Agent pursuant to Section 2.3(b),
then the Administrative Agent may, in its discretion (notwithstanding any
contrary provision of this Agreement), apply any amounts thereafter received by
the Administrative Agent for the account of such Lender to satisfy such Lender’s
obligations to the Administrative Agent under such Sections until all such
unsatisfied obligations are fully paid.

 

Section 11.7                                Governing Law; Submission to
Jurisdiction; Venue; Waiver of Jury Trial.

 

(a)                                  THIS AGREEMENT AND THE OTHER CREDIT
DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND
THEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF
THE STATE OF OHIO, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. TO THE
FULLEST EXTENT PERMITTED BY LAW, THE BORROWER HEREBY UNCONDITIONALLY AND
IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY JURISDICTION OTHER
THAN THE STATE OF OHIO GOVERNS THIS AGREEMENT OR ANY OF THE OTHER CREDIT
DOCUMENTS.  Any legal action or
proceeding with respect to this Agreement or any other Credit Document may be
brought in the Court of Common Pleas of Cuyahoga County, Ohio, or of the United
States for the Northern District of Ohio, and, by execution and delivery of
this Agreement, the Borrower hereby irrevocably accepts for itself and in
respect of its Property, generally and

 

 

 

unconditionally, the jurisdiction of the aforesaid courts.  The Borrower hereby further irrevocably
consents to the service of process out of any of the aforementioned courts in
any such action or proceeding by the mailing of copies thereof by registered or
certified mail, postage prepaid, to the Borrower at its address for notices
pursuant to Section 11.3, such service to become effective 30 days after
such mailing or at such earlier time as may be provided under applicable law.  Nothing herein shall affect the right of the
Administrative Agent or any Lender to serve process in any other manner
permitted by law or to commence legal proceedings or otherwise proceed against
the Borrower in any other jurisdiction.

 

(b)           The Borrower hereby irrevocably
waives any objection that it may now or hereafter have to the laying of venue
of any of the aforesaid actions or proceedings arising out of or in connection
with this Agreement or any other Credit Document brought in the courts referred
to in Section 11.7(a) above and hereby further irrevocably waives and
agrees not to plead or claim in any such court that any such action or
proceeding brought in any such court has been brought in an inconvenient forum.

 

(c)           EACH OF THE PARTIES TO
THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY OF THE OTHER CREDIT DOCUMENTS (INCLUDING, WITHOUT LIMITATION, ANY
AMENDMENTS, WAIVERS OR OTHER MODIFICATIONS RELATING TO ANY OF THE FOREGOING),
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.  EACH PARTY HERETO HEREBY (A) CERTIFIES THAT
NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
PARAGRAPH.

 

Section 11.8           Counterparts.  This
Agreement may be executed in any number of counterparts and by the different
parties hereto on separate counterparts, each of which when so executed and
delivered shall be an original, but all of which shall together constitute one
and the same agreement.

 

Section 11.9           Integration.  This
Agreement, the other Credit Documents and any separate letter agreements with
respect to fees payable to the Administrative Agent, for its own account and
benefit and/or for the account, benefit of, and distribution to, the Lenders,
constitute the entire contract among the parties relating to the subject matter
hereof and thereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof or thereof.

 

Section 11.10         Headings Descriptive. 
The headings of the several sections and other portions of this
Agreement are inserted for convenience only and shall not in any way affect the
meaning or construction of any provision of this Agreement.

 

Section 11.11         Amendment or Waiver.

 

(a)           Neither this Agreement nor any other
Credit Document, nor the terms hereof or thereof, may be amended, changed,
waived or otherwise modified unless such amendment, change, waiver or other
modification is in writing and signed by the Borrower and the Administrative
Agent, and also signed (or consented to in writing by) the Required Lenders, provided that

 

 

(i)            no
change in, or waiver or other modification otherwise affecting, the amount or
time of any scheduled or mandatory reduction in or termination of the Total
Commitment provided for in Section 3.3 to which a Lender shall be
entitled, shall be made without the written consent of each Lender;

 

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

 

(A)          increase
(1) the Commitment of any Lender hereunder, without the written consent of such
Lender, or (2) the Total Commitment, without the consent of all of the Lenders;

 

(B)           extend
or postpone any Maturity Date provided for herein that is applicable to any
Loan of any Lender, or extend or postpone any scheduled expiration or
termination date provided for herein that is applicable to a Commitment of any
Lender, without the written consent of such Lender;

 

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

 

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

 

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

 

(A)          release
the Borrower from any obligations as a guarantor of its Subsidiaries’
obligations under any Credit Document, except in accordance with the express
terms of this Agreement;

 

(B)           amend,
modify or waive any provision of this Section 11.11, or Section 9.3,
10.7, 11.1, 11.4 or 11.6, or any other provision of any of the Credit Documents
pursuant to which the consent or approval of all Lenders, or a number or
specified percentage or other required grouping of Lenders is by the terms of
such provision explicitly required;

 

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

 

(D)          consent
to the assignment or transfer by the Borrower of any of its rights and
obligations under this Agreement, except in accordance with the express terms
of this Agreement.

 

Any waiver, consent, amendment or other modification
with respect to this Agreement given or made in accordance with this
Section 11.11 shall be effective only in the specific instance and for the
specific purpose for which it was given or made.

 

(b)           No provision of Article X may be
amended without the consent of the Administrative Agent.

 

 

Section 11.12         Survival
of
Indemnities.  All indemnities set forth herein including,
without limitation, in Section 2.6, 2.7, 4.5, 10.7 or 11.1 shall survive
the execution and delivery of this Agreement and the making and repayment of
Loans.

 

Section 11.13         Domicile of Loans. 
Each Lender may transfer and carry its Loans at, to or for the account
of any branch office, subsidiary or affiliate of such Lender, provided that the Borrower shall not be responsible for
costs arising under Section 2.6 resulting from any such transfer (other
than a transfer pursuant to Section 2.8) to the extent not otherwise
applicable to such Lender prior to such transfer.

 

Section 11.14         Confidentiality.

 

(a)           The Administrative Agent and the
Lenders each agrees to maintain the confidentiality of all Confidential
Information (as defined below), except that Confidential Information may be
disclosed (i) to its and its Affiliates’
directors, officers, employees and agents, including accountants, legal counsel
and other advisors (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such
Confidential Information and instructed to keep such Confidential Information
confidential), (ii) to any direct or indirect
contractual counterparty in any swap, hedge or similar agreement (or to any
such contractual counterparty’s professional advisor, so long as such
contractual counterparty (or such professional advisor) agrees to be bound by
the provisions of this Section 11.14, (iii) to
the extent requested by any regulatory authority, (iv) to
the extent required by applicable laws or regulations or by any subpoena or
similar legal process, (v) to any other party
to this Agreement, (vi) to any other creditor of the
Borrower that is a direct or intended beneficiary of any of the Credit
Documents, (vii) in connection with the exercise of
any remedies hereunder or under any of the other Credit Documents, or any suit,
action or proceeding relating to this Agreement or any of the other Credit
Documents or the enforcement of rights hereunder or thereunder, (viii) subject to an agreement containing provisions
substantially the same as those of this Section 11.14, to any assignee of
or participant in, or any prospective assignee of or participant in, any of its
rights or obligations under this Agreement, (ix)
with the consent of the Borrower, or (x) to the
extent such Confidential Information (A) becomes publicly available other
than as a result of a breach of this Section 11.14, or (B) becomes
available to the Administrative Agent or any Lender on a non-confidential basis
from a source other than the Borrower.

 

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

 

Section 11.15         Lender
Register. 
The Borrower hereby designates the Administrative Agent to serve as its
agent, solely for purposes of this Section 11.15, to maintain a register
(the “Lender Register”) on or in which it will record the names and
addresses of the Lenders, and the Commitments from time to time of each of the
Lenders, the Loans made to the Borrower by each of the Lenders and each
repayment and prepayment in respect of the principal amount of such Loans of
each such Lender.  Failure to make any
such recordation, or (absent manifest error) any error in such recordation,
shall not affect the Borrower’s obligations in respect of such Loans.  With respect to any Lender, the transfer of
the Commitment of such Lender and the rights to the principal of, and interest
on, any Loan made pursuant to such Commitment shall not be effective until such
transfer is recorded on the Lender Register maintained by the Administrative
Agent with respect to ownership of such Commitment and Loans and prior to such
recordation all amounts owing to the transferor with respect to such Commitment
and Loans shall remain owing to the transferor. 
The registration of assignment or transfer of all or part of any Commitments
and Loans shall be recorded by the Administrative Agent on the Lender Register
only upon the acceptance by 

 

 

the Administrative Agent of a properly executed and
delivered Assignment Agreement pursuant to Section 11.4(c).  The Borrower agrees to indemnify the
Administrative Agent from and against any and all losses, claims, damages and
liabilities of whatsoever nature that may be imposed on, asserted against or
incurred by the Administrative Agent in performing its duties under this
Section 11.15, except to the extent attributable to the gross negligence
or willful misconduct of the Administrative Agent. The Lender Register shall be
available for inspection by the Borrower or any Lender at any reasonable time
and from time to time upon reasonable prior notice.

 

Section 11.16         General
Limitation of Liability.  No claim
may be made by the Borrower, any Lender, the Administrative Agent or any other
Person against the Administrative Agent or any other Lender or the Affiliates,
directors, officers, employees, attorneys or agents of any of them for any
damages other than actual compensatory damages in respect of any claim for
breach of contract or any other theory of liability arising out of or related
to the transactions contemplated by this Agreement or any of the other Credit
Documents, or any act, omission or event occurring in connection therewith; and
the Borrower, each Lender and the Administrative Agent hereby, to the fullest
extent permitted under applicable law, waives, releases and agrees not to sue
or counterclaim upon any such claim for any special, consequential or punitive
damages, whether or not accrued and whether or not known or suspected to exist
in its favor.

 

Section 11.17         No
Duty. 
All attorneys, accountants, appraisers, consultants and other
professional Persons (including, without limitation, the firms or other
entities on behalf of which any such Person may act) retained by the
Administrative Agent or any Lender with respect to the transactions
contemplated by the Credit Documents shall have the right to act exclusively in
the interest of the Administrative Agent or such Lender, as the case may be,
and shall have no duty of disclosure, duty of loyalty, duty of care, or other
duty or obligation of any type or nature whatsoever to the Borrower, to any of
its Subsidiaries, or to any other Person, with respect to any matters within
the scope of such representation or related to their activities in connection
with such representation.  The Borrower
agrees, on behalf of itself and its Subsidiaries, not to assert any claim or
counterclaim against any such Persons with regard to such matters, all such
claims and counterclaims, now existing or hereafter arising, whether known or
unknown, foreseen or unforeseeable, being hereby waived, released and forever
discharged.

 

Section 11.18         Lenders
and Agent
Not Fiduciary to Borrower.  The relationship among the
Borrower and its Subsidiaries, on the one hand, and the Administrative Agent
and the Lenders, on the other hand, is solely that of debtor and creditor, and
the Administrative Agent and the Lenders have no fiduciary or other special
relationship with the Borrower and its Subsidiaries, and no term or provision
of any Credit Document, no course of dealing, no written or oral communication,
or other action, shall be construed so as to deem such relationship to be other
than that of debtor and creditor.

 

Section 11.19         Survival
of
Representations and Warranties.  All
representations and warranties herein shall survive the making of Loans, the
execution and delivery of this Agreement, the Notes and the other documents
(the forms of which are attached as Exhibits hereto), the issue and delivery of
the Notes, any disposition thereof by any holder thereof, and any investigation
made by the Administrative Agent or any Lender or any other holder of any of
the Notes or on its behalf.  All
statements contained in any certificate or other document delivered to the
Administrative Agent or any Lender or any holder of any Notes by or on behalf
of the Borrower or of its Subsidiaries pursuant hereto or otherwise
specifically for use in connection with the transactions contemplated hereby
shall constitute representations and warranties by the Borrower hereunder, made
as of the respective dates specified therein or, if no date is specified, as of
the respective dates furnished to the Administrative Agent or any Lender.

 

Section 11.20         Severability.  Any provision
of this Agreement held to be invalid, illegal or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such 

 

 

invalidity, illegality or unenforceability without
affecting the validity, legality and enforceability of the remaining provisions
hereof; and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate such provision in any other jurisdiction.

 

Section 11.21         Independence of Covenants. 
All covenants hereunder shall be given independent effect so that if a
particular action, event, condition or circumstance is not permitted by any of
such covenants, the fact that it would be permitted by an exception to, or
would otherwise be within the limitations or restrictions of, another covenant,
shall not avoid the occurrence of a Default or an Event of Default if such
action is taken or event, condition or circumstance exists.

 

Section 11.22         Interest
Rate Limitation. 
Notwithstanding anything herein to the contrary, if at any time the
interest rate applicable to any Loan, together with all fees, charges and other
amounts that are treated as interest on such Loan under applicable law (collectively
the “Charges”), shall exceed the maximum lawful rate (the “Maximum
Rate”) that may be contracted for, charged, taken, received or reserved by
the Lender holding such Loan in accordance with applicable law, the rate of
interest payable in respect of such Loan hereunder, together with all Charges
payable in respect thereof, shall be limited to the Maximum Rate and, to the
extent lawful, the interest and Charges that would have been payable in respect
of such Loan but were not payable as a result of the operation of this Section
shall be cumulated and the interest and Charges payable to such Lender in
respect of other Loans or periods shall be increased (but not above the Maximum
Rate therefor) until such cumulated amount, together with interest thereon at
the Base Rate to the date of repayment, shall have been received by such
Lender.

 

Section 11.23         Treasury Regulations. 
The Borrower acknowledges that the Administrative Agent and/or one or
more of the Lenders may treat the Loans as part of a transaction that is
subject to Treasury Regulation Section 1.6011-4 or Section 301.6112-1, and the
Administrative Agent and such Lender or Lenders, as applicable, may file such
IRS forms or maintain such lists and other records as they may determine is
required by such Treasury Regulations.

 

[Remainder of page intentionally left blank; signature
pages follow.]

 

 

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

	
   

  	
  THE DAYTON POWER AND LIGHT COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KEYBANK NATIONAL ASSOCIATION,

  as a Lender and as the Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LASALLE BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

 

Signature Page

to

The Dayton Power and Light Company Credit Agreement

 

 

ANNEX I

 

INFORMATION AS TO LENDERS

 

	
  Name
  of Lender

  	
   

  	
  Commitments

  	
   

  	
  Notice Address

  
	
  KeyBank National Association

  	
   

  	
  Commitment:

  

  $50,000,000

  	
   

  	
  KeyBank National Association

  127 Public Square

  Cleveland, Ohio 44114

  Facsimile: (216) 689-5962

  Attention: Yvette M. Dyson-Owens

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LaSalle Bank National Association

  	
   

  	
  Commitment:

  

  $50,000,000

  	
   

  	
  LaSalle Bank National Association

  135 South LaSalle Street

  Chicago, Illinois 60603

  Facsimile: (312) 904-0373

  Attention: Jeanette Lahart

  

 

E-1

 

EXHIBIT A

 

REVOLVING NOTE

 

	
  $                                        

  	
   

  	
  Cleveland, Ohio

  
	
   

  	
   

  	
                      ,
  20     

  

 

FOR VALUE RECEIVED, the undersigned, THE DAYTON POWER
AND LIGHT COMPANY, an Ohio corporation (herein, together with its successors
and assigns, the “Borrower”), hereby promises to pay to the order of                                       
(the “Lender”), in lawful money of the United States of America and in
immediately available funds, at the Payment Office (such term and certain other
capitalized terms used herein without definition shall have the meanings
ascribed thereto in the Credit Agreement referred to below) of KeyBank National
Association (the “Administrative Agent”), the principal sum of                               DOLLARS AND 00/100 ($                      )
or, if less, the then unpaid principal amount of all Loans made by the Lender
to the Borrower pursuant to the Credit Agreement, on the Maturity Date.

 

The Borrower promises also to pay interest in like
currency and funds at the Payment Office on the unpaid principal amount of each
Loan made by the Lender from the date of such Loan until paid at the rates and
at the times provided in Section 2.5 of the Credit Agreement.

 

This Note is one of the Notes referred to in the
Credit Agreement, dated as of May 31, 2005, among the Borrower, the lending
institutions from time to time party thereto (including the Lender), and the
Administrative Agent (as the same may from time to time be amended, restated,
supplemented or otherwise modified, the “Credit Agreement”), and is
entitled to the benefits thereof and of the other Credit Documents.  As provided in the Credit Agreement, this
Note is subject to mandatory prepayment prior to the Maturity Date, in whole or
in part.

 

In case an Event of Default shall occur and be
continuing, the principal of and accrued interest on this Note may be declared
to be due and payable in the manner and with the effect provided in the Credit
Agreement.

 

The Borrower hereby waives presentment, demand, protest or notice of
any kind in connection with this Note. 
No failure to exercise, or delay in exercising, any rights hereunder on
the part of the holder hereof shall operate as a waiver of any such rights.

 

THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE
LAW OF THE STATE OF OHIO, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.

 

IN WITNESS WHEREOF, the undersigned has duly executed this Note as of
the date first written above.

 

	
   

  	
  THE DAYTON POWER AND LIGHT COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

E-2

 

EXHIBIT B

 

NOTICE OF BORROWING,
CONTINUATION OR CONVERSION

                     ,
200      

KeyBank
National Association,

as Administrative Agent for the Lenders party

to the Credit Agreement referred to below

127 Public Square

Cleveland, Ohio 44114

Attention:  Yvette M. Dyson-Owens

 

Re:          Notice of Borrowing, Continuation
or Conversion

 

Ladies and Gentlemen:

 

[For a Borrowing:

 

The undersigned, The Dayton Power and Light Company,
an Ohio corporation (the “Company”), refers to the Credit Agreement,
dated as of May 31, 2005 (as amended, modified or supplemented from time to
time, the “Credit Agreement,” the terms defined therein being used
herein as therein defined), among the Company, as Borrower, the lending
institutions from time to time party thereto (the “Lenders”), and
KeyBank National Association, as Administrative Agent for such Lenders, and
hereby gives you notice, irrevocably, pursuant to Section 2.2(b) of the
Credit Agreement, that the undersigned hereby requests one or more Borrowings
under the Credit Agreement, and in that connection therewith sets forth in the
schedule attached hereto the information relating to each such Borrowing
(collectively the “Proposed Borrowing”) as required by Section 2.2(b) of
the Credit Agreement.

 

The undersigned hereby specifies that the Proposed
Borrowing will consist of Loans as indicated in the schedule attached hereto.

 

The undersigned hereby certifies that the following
statements are true on the date hereof, and will be true on the date of the
Proposed Borrowing:

 

(A)          the
representations and warranties of the Borrower contained in the Credit Agreement
and the other Credit Documents are and will be true and correct in all material
respects, before and after giving effect to the Proposed Borrowing and to the
application of the proceeds thereof, as though made on such date, except to the
extent that such representations and warranties expressly relate to an earlier
specified date, in which case such representations and warranties were true and
correct in all material respects as of the date when made; and

 

(B)           no
Default or Event of Default has occurred and is continuing, or would result
from such Proposed Borrowing or from the application of the proceeds thereof.

 

[For a Continuation:

 

The undersigned, The Dayton Power and Light Company,
an Ohio corporation (the “Company”), refers to the Credit Agreement,
dated as of May 31, 2005 (as amended, modified or supplemented from time to
time, the “Credit Agreement,” the terms defined therein being used
herein as therein defined), among the Company, as Borrower, the lending
institutions from time to time party thereto (the “Lenders”), and
KeyBank National Association, as Administrative Agent for such Lenders, and
hereby 

 

E-3

 

gives you notice,
irrevocably, pursuant to Section 2.2(b) of the Credit Agreement, that the
undersigned hereby requests one or more Continuations of Loans, consisting of
one Type of Loan, pursuant to Section 2.2(a) of the Credit Agreement, and
in that connection therewith sets forth in the schedule attached hereto the
information relating to each such Continuation.]

 

[For a Conversion:

 

The undersigned, The Dayton Power and Light Company,
an Ohio corporation (the “Company”), refers to the Credit Agreement,
dated as of May 31, 2005 (as amended, modified or supplemented from time to
time, the “Credit Agreement,” the terms defined therein being used
herein as therein defined), among the Company, as Borrower, the lending
institutions from time to time party thereto (the “Lenders”), and
KeyBank National Association, as Administrative Agent for such Lenders, and
hereby gives you notice, irrevocably, pursuant to Section 2.2(b) of the Credit
Agreement, that the undersigned hereby requests one or more Conversions of
Loans, consisting of one Type of Loan, into Loans of another Type, pursuant to
Section 2.2(a) of the Credit Agreement, and in that connection therewith sets
forth in the schedule attached hereto the information relating to each such
Conversion.]

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  THE DAYTON POWER AND LIGHT COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

E-4

 

BORROWING SCHEDULE

Proposed Borrowing #1:

 

	
  Business
  Day

  of

  Proposed

  Borrowing

  	
   

  	
  Type of

  Loans

  	
   

  	
  Aggregate

  Amount

  of Loans

  	
   

  	
  Interest Period

  if Loans are

  Eurodollar

  Loans

  	
   

  
	
   

  	
   

  	
  Base Rate Loans

  	
   

  	
   

  	
   

  	
  One Month

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Eurodollar Loans

  	
   

  	
   

  	
   

  	
  Two Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Three Months

  	
   

  
	
        , 200      

  	
   

  	
  [Circle one of

  above]

  	
   

  	
  $

  	
         

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Six Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [Circle one of

  above]

  	
   

  
									

 

Proposed Borrowing #2:

 

	
  Business
  Day

  of

  Proposed

  Borrowing

  	
   

  	
  Type of

  Loans

  	
   

  	
  Aggregate

  Amount

  of Loans

  	
   

  	
  Interest Period

  if Loans are

  Eurodollar

  Loans

  	
   

  
	
   

  	
   

  	
  Base Rate Loans

  	
   

  	
   

  	
   

  	
  One Month

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Eurodollar Loans

  	
   

  	
   

  	
   

  	
  Two Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Three Months

  	
   

  
	
          , 200      

  	
   

  	
  [Circle one of

  above]

  	
   

  	
  $

  	
         

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Six Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [Circle one of 

  bove]

  	
   

  
									

 

E-5

 

CONTINUATION SCHEDULE

 

	
  Proposed
  Continuation #1

  
	
   

  	
  [of
  the Loans described in the first table below

  
	
   

  	
  Into
  the Loans described in the second table below]

  

 

	
  Date
  of Loans

  	
   

  	
  Type of Loans

  	
   

  	
  Aggregate

  Amount

  of Loans

  	
   

  	
  Interest Period

  of Loans

  	
   

  
	
   

  	
   

  	
  Eurodollar Loans

  	
   

  	
   

  	
   

  	
  One Month

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Two Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
         , 200       

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Three Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  $

  	
         

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Six Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [Circle one of

  above]

  	
   

  
									

 

	
  Date
  of Loans

  	
   

  	
  Type of Loans

  	
   

  	
  Aggregate

  Amount

  of Loans

  	
   

  	
  Interest Period

  of Loans

  	
   

  
	
   

  	
   

  	
  Eurodollar Loans

  	
   

  	
   

  	
   

  	
  One Month

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Two Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
        , 200      

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Three Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  $

  	
        

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Six Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [Circle one of

  above]

  	
   

  
									

 

E-6

 

	
  Proposed
  Continuation #2

  
	
   

  	
  [of
  the Loans described in the first table below

  
	
   

  	
  into
  the Loans described in the second table below]

  

 

	
  Date
  of Loans

  	
   

  	
  Type of Loans

  	
   

  	
  Aggregate

  Amount

  of Loans

  	
   

  	
  Interest Period

  of Loans

  	
   

  
	
   

  	
   

  	
  Eurodollar Loans

  	
   

  	
   

  	
   

  	
  One Month

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Two Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
        , 200      

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Three Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  $

  	
         

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Six Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [Circle one of

  above]

  	
   

  
									

 

	
  Date
  of Loans

  	
   

  	
  Type of Loans

  	
   

  	
  Aggregate

  Amount

  of Loans

  	
   

  	
  Interest Period

  of Loans

  	
   

  
	
   

  	
   

  	
  Eurodollar Loans

  	
   

  	
   

  	
   

  	
  One Month

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Two Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
         , 200       

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Three Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  $

  	
          

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Six Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [Circle one

  of above]

  	
   

  
									

 

E-7

 

CONVERSION SCHEDULE

 

	
  Proposed
  Conversion #1

  
	
   

  	
  [of
  the Loans described in the first table below

  
	
   

  	
  Into
  the Loans described in the second table below]

  

 

	
  Date
  of Loans

  	
   

  	
  Type of Loans

  	
   

  	
  Aggregate

  Amount

  of Loans

  	
   

  	
  Interest Period

  if Loans are

  Eurodollar Loans

  	
   

  
	
   

  	
   

  	
  Base Rate Loans 

  	
   

  	
   

  	
   

  	
  One Month

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Eurodollar Loans

  	
   

  	
   

  	
   

  	
  Two Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Three Months

  	
   

  
	
         , 200     

  	
   

  	
  [Circle one of

  Above]

  	
   

  	
  $

  	
         

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Six Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [Circle one of

  above]

  	
   

  
									

 

	
  Date
  of Loans

  	
   

  	
  Type of Loans

  	
   

  	
  Aggregate

  Amount

  of Loans

  	
   

  	
  Interest Period

  if Loans are

  Eurodollar Loans

  	
   

  
	
   

  	
   

  	
  Base Rate Loans 

  	
   

  	
   

  	
   

  	
  One Month

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Eurodollar Loans

  	
   

  	
   

  	
   

  	
  Two Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Three Months

  	
   

  
	
         , 200     

  	
   

  	
  [Circle one of

  Above]

  	
   

  	
  $

  	
        

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Six Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [Circle one of

  above]

  	
   

  
									

 

E-8

 

	
  Proposed
  Conversion #2

  
	
   

  	
  [of
  the Loans described in the first table below

  
	
   

  	
  into
  the Loans described in the second table below]

  

 

	
  Date
  of Loans

  	
   

  	
  Type of Loans

  	
   

  	
  Aggregate

  Amount

  of Loans

  	
   

  	
  Interest Period

  if Loans are

  Eurodollar Loans

  	
   

  
	
   

  	
   

  	
  Base Rate Loans 

  	
   

  	
   

  	
   

  	
  One Month

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Eurodollar Loans

  	
   

  	
   

  	
   

  	
  Two Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Three Months

  	
   

  
	
         , 200     

  	
   

  	
  [Circle one of

  Above]

  	
   

  	
  $

  	
         

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Six Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [Circle one of

  above]

  	
   

  
									

 

	
  Date
  of Loans

  	
   

  	
  Type of Loans

  	
   

  	
  Aggregate

  Amount

  of Loans

  	
   

  	
  Interest Period

  if Loans are

  Eurodollar Loans

  	
   

  
	
   

  	
   

  	
  Base Rate Loans 

  	
   

  	
   

  	
   

  	
  One Month

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Eurodollar Loans

  	
   

  	
   

  	
   

  	
  Two Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Three Months

  	
   

  
	
         , 200     

  	
   

  	
  [Circle one of

  Above]

  	
   

  	
  $

  	
        

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Six Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [Circle one of

  above]

  	
   

  
									

 

E-9

 

EXHIBIT C

COMPLIANCE CERTIFICATE

 

For Fiscal Quarter ended                                     

 

THE UNDERSIGNED HEREBY CERTIFIES THAT:

 

(1)           I am the duly elected                                  of
THE DAYTON POWER AND LIGHT COMPANY, an Ohio corporation (the “Borrower”);

 

(2)           I am familiar with the terms of that
certain Credit Agreement, dated as of May 31, 2005, among the undersigned, the
Lenders, as defined in the Credit Agreement, and KeyBank National Association,
as Administrative Agent (as the same may from time to time be amended,
restated, supplemented or otherwise modified, the “Credit Agreement”,
the terms defined therein being used herein as therein defined), and the terms
of the other Credit Documents, and I have made, or have caused to be made under
my supervision, a review in reasonable detail of the transactions and condition
of the Borrower and its Subsidiaries during the accounting period covered by
the attached financial statements;

 

(3)           The review described in paragraph (2)
above did not disclose, and I have no knowledge of, the existence of any
condition or event that constitutes or constituted a Default or Event of
Default, at the end of the accounting period covered by the attached financial
statements or as of the date of this Certificate;

 

(4)           The Borrower hereby represents that the
representations and warranties made by the Borrower contained in the Credit
Agreement and each other Credit Document are true and correct in all material
respects as though made on and as of the date hereof, except to the extent that
such representations and warranties expressly relate to an earlier specified
date, in which case such representations and warranties were true and correct
in all material respects as of the date when made; and

 

(5)           Set forth on Attachment I hereto
are calculations of the covenants set forth in Sections 8.5 of the Credit
Agreement, which calculations show compliance with the terms thereof.

 

IN WITNESS WHEREOF, I have signed this certificate the
      day of               ,
20      .

 

	
   

  	
  THE
  DAYTON POWER AND LIGHT COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

E-10

 

EXHIBIT D

CLOSING CERTIFICATE

 

Pursuant to Section 5.1(j) of the Credit
Agreement, dated as of May 31, 2005 (the “Credit Agreement”; all
capitalized terms used herein have the meaning given to them in the Credit
Agreement unless otherwise defined herein), among THE DAYTON POWER AND LIGHT
COMPANY, an Ohio corporation (the “Borrower”), the lending institutions
party thereto (collectively, the “Lenders”) and KEYBANK NATIONAL
ASSOCIATION, as administrative agent for the Lenders under the Credit Agreement
(“Agent”), the undersigned, being the duly elected, qualified and acting
                                          of
the Borrower hereby certifies on behalf of the Borrower as follows:

 

1.             all
conditions precedent set forth in Section 5.1 of the Credit Agreement have been
satisfied;

 

2.             both
before and after giving effect to any Borrowings made on the date hereof and
the application of the proceeds thereof, no Default or Event of Default has
occurred or is continuing; and

 

3.             both
before and after giving effect to any Borrowings made on the date hereof and
the application of the proceeds thereof, all representations and warranties of
the Borrower contained in the Credit Agreement and in the other Credit
Documents are true and correct in all material respects with the same effect as
though such representations and warranties had been made on and as of the date
hereof, except that, as to any such representations and warranties that
expressly relate to an earlier specified date, such representations and
warranties are only represented as having been true and correct in all material
respects as of the date when made.

 

IN WITNESS WHEREOF, the undersigned has executed this
Certificate on May 31, 2005.

 

	
   

  	
  THE
  DAYTON POWER AND LIGHT COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:
  

  	
   

  
					

 

E-11

 

EXHIBIT E

ASSIGNMENT AGREEMENT

DATE:               

 

Reference is made to the Credit Agreement described in
Item 2 of Annex I annexed hereto (as the same may from time to time be amended,
restated, supplemented or otherwise modified, the “Credit Agreement”).  Unless defined in Annex I attached hereto,
terms defined in the Credit Agreement are used herein as therein defined.

 

                        (the
“Assignor”) and                         (the
“Assignee”) hereby agree as follows:

 

1.             The
Assignor hereby sells and assigns to the Assignee without recourse and without
representation or warranty (other than as expressly provided herein), and the
Assignee hereby purchases and assumes from the Assignor, that interest in and
to all of the Assignor’s rights and obligations under the Credit Agreement as
of the date hereof that represents the percentage interest specified in Item 4
of Annex I (the “Assigned Share”) of all of Assignor’s outstanding
rights and obligations under the Credit Agreement indicated in Item 4 of Annex
I, including, without limitation, all rights and obligations with respect to
the Assigned Share of the Assignor’s Commitment and of the Loans and the Notes
held by the Assignor.  After giving
effect to such sale and assignment, the Assignee’s Commitment will be as set
forth in Item 4 of Annex I.

 

2.             The
Assignor (i) represents and warrants that it is duly authorized to enter into
and perform the terms of this Assignment Agreement, that it is the legal and
beneficial owner of the interest being assigned by it hereunder and that such
interest is free and clear of any liens or security interests; (ii) makes
no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the
Credit Agreement or the other Credit Documents or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Credit
Agreement or the other Credit Documents or any other instrument or document
furnished pursuant thereto; and (iii) makes no representation or warranty and
assumes no responsibility with respect to the financial condition of the
Borrower or any of its Subsidiaries or the performance or observance by the
Borrower of any of its obligations under the Credit Agreement or the other
Credit Documents or any other instrument or document furnished pursuant
thereto.

 

3.             The
Assignee (i) represents and warrants that it is duly authorized to enter into
and perform the terms of this Assignment Agreement; (ii) confirms that it has
received a copy of the Credit Agreement and the other Credit Documents,
together with copies of the financial statements referred to therein and such
other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Assignment Agreement; (iii)
agrees that it will, independently and without reliance upon the Administrative
Agent, the Assignor or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Credit Agreement;
(iv) appoints and authorizes each Agent to take such action as agent on its
behalf and to exercise such powers under the Credit Agreement and the other
Credit Documents as are delegated to such Agent by the terms thereof, together
with such powers as are reasonably incidental thereto; [and] (v) agrees that it
will perform in accordance with their terms all of the obligations that by the
terms of the Credit Agreement are required to be performed by it as a Lender[; and (vi) to the extent legally entitled to do so, attaches the forms
described in Section 4.5(b)(ii) of the Credit Agreement](1).

 

(1)           If the Assignee is
organized under the laws of a jurisdiction outside the United States.

 

E-12

 

4.             Following
the execution of this Assignment Agreement by the Assignor and the Assignee, an
executed original hereof (together with all attachments) will be delivered to
the Administrative Agent. The effective date of this Assignment Agreement shall
be the date of execution hereof by the Assignor, the Assignee and the consent
hereof by the Administrative Agent and the receipt by the Administrative Agent
of the administrative fee referred to in Section 11.4(c) of the Credit
Agreement, unless otherwise specified in Item 5 of Annex I hereto (the “Settlement
Date”).

 

5.             Upon
the delivery of a fully executed original hereof to the Administrative Agent,
as of the Settlement Date, (i) the Assignee shall be a party to the Credit
Agreement and, to the extent provided in this Assignment Agreement, shall have
the rights and obligations of a Lender thereunder and under the other Credit
Documents and (ii) the Assignor shall, to the extent provided in this
Assignment Agreement, relinquish its rights and be released from its
obligations under the Credit Agreement and the other Credit Documents.

 

6.             It
is agreed that upon the effectiveness hereof, the Assignee shall be entitled to
(x) all interest on the Assigned Share of the Loans at the rates specified
in Item 6 of Annex I, and (y) all Facility Fees (if applicable) on the
Assigned Share of the Commitment at the rate specified in Item 7 of Annex
I, that, in each case, accrue on and after the Settlement Date, such interest
and, if applicable, Facility Fees, to be paid by the Administrative Agent, upon
receipt thereof from the Borrower, directly to the Assignee. It is further
agreed that all payments of principal made by the Borrower on the Assigned
Share of the Loans that occur on and after the Settlement Date will be paid
directly by the Administrative Agent to the Assignee.  Upon the Settlement Date, the Assignee shall
pay to the Assignor an amount specified by the Assignor in writing that
represents the Assigned Share of the principal amount of the respective Loans
made by the Assignor pursuant to the Credit Agreement that are outstanding on
the Settlement Date, net of any closing costs, and that are being assigned
hereunder. The Assignor and the Assignee shall make all appropriate adjustments
in payments under the Credit Agreement for periods prior to the Settlement Date
directly between themselves on the Settlement Date.

 

7.             THIS
ASSIGNMENT AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF OHIO, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAWS.

 

*  *  *

 

IN WITNESS WHEREOF, the parties hereto have caused
this Assignment Agreement to be executed by their respective officers thereunto
duly authorized, as of the date first above written.

 

	
  [NAME OF ASSIGNOR],

  	
  [NAME OF ASSIGNEE],

  
	
  as Assignor

  	
  as Assignee

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
										

 

E-13

 

	
  [Consented
  to](2) and Accepted:

  	
   

  
	
   

  	
   

  
	
  KEYBANK
  NATIONAL ASSOCIATION,

  	
   

  
	
   

  	
  as
  Administrative Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  [Consented
  to:](3)

  	
   

  
	
   

  	
   

  
	
  THE DAYTON
  POWER AND LIGHT

  	
   

  
	
  COMPANY

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
								

 

(2)           To be added only if
the consent of the Administrative Agent is required by the terms of the Credit
Agreement.

 

(3)           To be added only if
the consent of the Borrower is required by the terms of the Credit Agreement.

 

14

 

ANNEX I

TO

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

1.             The Borrower:

 

THE DAYTON POWER AND LIGHT COMPANY

 

2.             Name and Date of Credit Agreement:

 

Credit Agreement, dated as of May 31, 2005, among The
Dayton Power and Light Company, the Lenders from time to time party thereto,
and KeyBank National Association, as Administrative Agent.

 

3.             Date of Assignment Agreement:

 

               
     ,        

 

4.             Amounts (as of date of item #3
above):

 

	
   

  	
   

  	
  Commitment

  	
   

  	
  Loans

  	
   

  
	
  Aggregate Amount for all Lenders

  	
   

  	
  $

  	
        

  	
   

  	
  $

  	
        

  	
   

  
	
  Assigned Share

  	
   

  	
   

  	
  %

  	
   

  	
  %

  
	
  Amount of Assigned Share

  	
   

  	
  $

  	
        

  	
   

  	
  $

  	
        

  	
   

  
	
  Amount Retained by Assignor

  	
   

  	
  $

  	
        

  	
   

  	
  $

  	
        

  	
   

  

 

5.             Settlement Date:

 

               
     ,        

 

6.             Rate of Interest

	
  to the Assignee:

  	
  As set forth in
  Section 2.5 of the Credit Agreement (unless otherwise agreed to by the
  Assignor and the Assignee).(4)

  

 

 

7.             Commitment

	
  Fee:

  	
  As set forth in
  Section 3.1(a) of the Credit Agreement (unless otherwise agreed to by
  the Assignor and the Assignee).(5)

  

 

(4)           The
Borrower and the Administrative Agent shall direct the entire amount of the
interest to the Assignee at the rate set forth in Section 2.5 of the
Credit Agreement, with the Assignor and Assignee effecting any agreed upon
sharing of interest through payments by the Assignee to the Assignor.

 

(5)           The Borrower and the
Administrative Agent shall direct the entire amount of the Facility Fees to the
Assignee at the rate set forth in Section 3.1(a) of the Credit Agreement, with
the Assignor and the Assignee effecting any agreed upon sharing of Facility
Fees through payment by the Assignee to the Assignor.

 

E-15

 

8.             Notices:

 

	
  ASSIGNOR:

  	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Attention:

  
	
  Telephone No.:

  	
   

  	
  Telephone No.:

  
	
  Facsimile No.:

  	
   

  	
  Facsimile No.:

  

 

9.             Payment Instructions:

 

	
  ASSIGNOR:

  	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABA No. 

  	
   

  	
  ABA No. 

  
	
  Account No.:

  	
   

  	
  Account No.:

  
	
  Reference:

  	
   

  	
  Reference:

  
	
  Attention:

  	
   

  	
  Attention:

  
	
  Telephone No.:

  	
   

  	
  Telephone No.:

  
	
  Facsimile No.:

  	
   

  	
  Facsimile No.:

  

 

E-16

 

EXHIBIT F

(Legal Opinion of General Counsel of the Borrower)

 

E-17

 

EXHIBIT G

EXTENSION REQUEST

 

                    ,
200       

 

KeyBank
National Association,

as Administrative Agent for the Lenders party

to the Credit Agreement referred to below

127 Public Square

Cleveland, Ohio 44114

Attention:  Yvette M. Dyson-Owens

 

Ladies and Gentlemen:

 

The undersigned, The Dayton Power and Light Company,
an Ohio corporation (the “Company”), refers to the Credit Agreement,
dated as of May 31, 2005 (as amended, modified or supplemented from time to
time, the “Credit Agreement,” the terms defined therein being used
herein as therein defined), among the Company, as Borrower, the lending
institutions from time to time party thereto (the “Lenders”), and
KeyBank National Association, as Administrative Agent for such Lenders, and
hereby requests that the maturity of Loans be extended to                                        ,
20       (the “Extended Maturity Date”).

 

The undersigned hereby certifies that the following
statements are true on the date hereof:

 

(A)          no Default or Event of Default has
occurred and is continuing; and

 

(B)           attached hereto as Annex 1 is a true,
correct and complete copy of the PUCO Order that is in full force and effect on
the date hereof and authorizes the Company to incur Loans in an amount equal to
or greater than the amount of the Total Commitment, in each case through the
Extended Maturity Date.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  THE
  DAYTON POWER AND LIGHT COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

E-18Exhibit
10.43

 

 

Published
CUSIP Number: 14745GAD7

 

AMENDED
AND RESTATED REVOLVING CREDIT AGREEMENT

 

Dated
as of April 28, 2005

 

among

 

CASELLA WASTE SYSTEMS, INC.

and its
Subsidiaries

(other
than Excluded Subsidiaries and the Non-Borrower Subsidiaries)

as
the Borrowers,

 

BANK OF
AMERICA, N.A.

as Administrative Agent, Swing Line Lender

and

L/C Issuer,

 

and

 

The
Other Lenders Party Hereto

 

BANC OF AMERICA SECURITIES LLC

as
Sole Lead Arranger and Sole Book Manager

 

CITIZENS BANK

as
Syndication Agent

 

and

 

SOVEREIGN BANK

WACHOVIA BANK

and

CALYON NEW YORK BRANCH

as
Co-Documentation Agents

 

 

 

TABLE
OF CONTENTS

 

	
  Section

  	
   

  	
   

  
	
   

  	
   

  
	
  AMENDED
  AND RESTATED REVOLVING CREDIT AGREEMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE I.

  	
  DEFINITIONS AND
  ACCOUNTING TERMS

  	
   

  
	
  1.01

  	
  Defined
  Terms.

  	
   

  
	
  1.02

  	
  Other Interpretive
  Provisions.

  	
   

  
	
  1.03

  	
  Accounting Terms.

  	
   

  
	
  1.04

  	
  Rounding.

  	
   

  
	
  1.05

  	
  Times
  of Day.

  	
   

  
	
  1.06

  	
  Letter of Credit Amounts.

  	
   

  
	
   

  	
   

  
	
  ARTICLE II.

  	
  THE COMMITMENTS
  AND CREDIT EXTENSIONS

  	
   

  
	
  2.01

  	
  Committed
  Loans.

  	
   

  
	
  2.02

  	
  Borrowings,
  Conversions and Continuations of Loans.

  	
   

  
	
  2.03

  	
  Letters of Credit.

  	
   

  
	
  2.04

  	
  Swing Line Loans.

  	
   

  
	
  2.05

  	
  Prepayments.

  	
   

  
	
  2.06

  	
  Termination
  or Reduction of Commitments.

  	
   

  
	
  2.07

  	
  Repayment of Loans.

  	
   

  
	
  2.08

  	
  Interest.

  	
   

  
	
  2.09

  	
  Fees.

  	
   

  
	
  2.10

  	
  Computation of
  Interest and Fees.

  	
   

  
	
  2.11

  	
  Evidence of Debt.

  	
   

  
	
  2.12

  	
  Payments
  Generally; Administrative Agent’s Clawback.

  	
   

  
	
  2.13

  	
  Sharing of
  Payments by Lenders.

  	
   

  
	
  2.14

  	
  Increase in
  Commitments; Term B Loan.

  	
   

  
	
  2.15

  	
  Currency of Account.

  	
   

  
	
   

  	
   

  
	
  ARTICLE III.

  	
  TAXES, YIELD
  PROTECTION AND ILLEGALITY

  	
   

  
	
  3.01

  	
  Taxes.

  	
   

  
	
  3.02

  	
  Illegality.

  	
   

  
	
  3.03

  	
  Inability to
  Determine Rates.

  	
   

  
	
  3.04

  	
  Increased Costs.

  	
   

  
	
  3.05

  	
  Compensation for Losses.

  	
   

  
	
  3.06

  	
  Mitigation
  Obligations; Replacement of Lenders.

  	
   

  
	
  3.07

  	
  Survival.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV.

  	
  CONDITIONS
  PRECEDENT TO CREDIT EXTENSIONS

  	
   

  
	
  4.01

  	
  Conditions
  of Initial Credit Extension.

  	
   

  
	
  4.02

  	
  Conditions to
  all Credit Extensions.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V.

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
   

  
	
  5.01

  	
  Corporate Authority.

  	
   

  
	
  5.02

  	
  Governmental Approvals.

  	
   

  
	
  5.03

  	
  Title to Properties;
  Leases.

  	
   

  
	
  5.04

  	
  Use of Proceeds.

  	
   

  
	
  5.05

  	
  Financial
  Statements; Solvency.

  	
   

  
	
  5.06

  	
  No Material Changes, Etc.

  	
   

  
	
  5.07

  	
  Permits,
  Franchises, Patents, Copyrights, Etc.

  	
   

  
						

 

i

 

	
  5.08

  	
  Litigation.

  	
   

  
	
  5.09

  	
  No Materially
  Adverse Contracts, Etc.

  	
   

  
	
  5.10

  	
  Compliance
  With Other Instruments, Laws, Etc.

  	
   

  
	
  5.11

  	
  Tax Status.

  	
   

  
	
  5.12

  	
  Employee Benefit Plans.

  	
   

  
	
  5.13

  	
  Subsidiaries;
  Equity Interests; Capitalization.

  	
   

  
	
  5.14

  	
  Holding
  Company and Investment Company Act.

  	
   

  
	
  5.15

  	
  Absence of
  Financing Statements, Etc.

  	
   

  
	
  5.16

  	
  Environmental
  Compliance.

  	
   

  
	
  5.17

  	
  Perfection of
  Security Interests.

  	
   

  
	
  5.18

  	
  Certain Transactions.

  	
   

  
	
  5.19

  	
  True
  Copies of Charter and Other Documents.

  	
   

  
	
  5.20

  	
  Disclosure.

  	
   

  
	
  5.21

  	
  Guarantees of
  Excluded Subsidiaries.

  	
   

  
	
  5.22

  	
  Obligations
  Constitute Senior Debt.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI.

  	
  AFFIRMATIVE COVENANTS

  	
   

  
	
  6.01

  	
  Punctual Payment.

  	
   

  
	
  6.02

  	
  Maintenance of Office.

  	
   

  
	
  6.03

  	
  Records and Accounts.

  	
   

  
	
  6.04

  	
  Financial
  Statements, Certificates and Information.

  	
   

  
	
  6.05

  	
  Legal
  Existence and Conduct of Business.

  	
   

  
	
  6.06

  	
  Maintenance of Properties.

  	
   

  
	
  6.07

  	
  Maintenance of Insurance.

  	
   

  
	
  6.08

  	
  Taxes.

  	
   

  
	
  6.09

  	
  Inspection
  of Properties, Books and Contracts.

  	
   

  
	
  6.10

  	
  Compliance
  with Laws, Contracts, Licenses and Permits; Maintenance of Material Licenses
  and Permits.

  	
   

  
	
  6.11

  	
  Environmental
  Indemnification.

  	
   

  
	
  6.12

  	
  Further Assurances.

  	
   

  
	
  6.13

  	
  Notice of
  Potential Claims or Litigation.

  	
   

  
	
  6.14

  	
  Notice
  of Certain Events Concerning Insurance and Environmental Claims.

  	
   

  
	
  6.15

  	
  Notice of Default.

  	
   

  
	
  6.16

  	
  Closure and
  Post Closure Liabilities.

  	
   

  
	
  6.17

  	
  Subsidiaries.

  	
   

  
	
  6.18

  	
  Interest Rate Protection.

  	
   

  
	
  6.19

  	
  Additional Borrowers.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII.

  	
  NEGATIVE COVENANTS

  	
   

  
	
  7.01

  	
  Liens.

  	
   

  
	
  7.02

  	
  Investments.

  	
   

  
	
  7.03

  	
  Indebtedness.

  	
   

  
	
  7.04

  	
  Mergers;
  Consolidation; Sales.

  	
   

  
	
  7.05

  	
  Reserved.

  	
   

  
	
  7.06

  	
  Restricted Payments.

  	
   

  
	
  7.07

  	
  Change in Nature of
  Business.

  	
   

  
	
  7.08

  	
  Transactions with
  Affiliates.

  	
   

  
	
  7.09

  	
  Burdensome
  Agreements; Negative Pledges.

  	
   

  
	
  7.10

  	
  Use of Proceeds.

  	
   

  
	
  7.11

  	
  Financial Covenants.

  	
   

  
	
  7.12

  	
  Sale and Leaseback.

  	
   

  
	
  7.13

  	
  No Other Senior Debt.

  	
   

  

 

ii

 

	
  7.14

  	
  Actions
  Otherwise Prohibited By Subordinated Debt.

  	
   

  
	
  7.15

  	
  Employee Benefit Plans.

  	
   

  
	
  7.16

  	
  Prepayments
  of Certain Obligations; Modifications of Subordinated Debt.

  	
   

  
	
  7.17

  	
  Upstream Limitations.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII.

  	
  EVENTS OF DEFAULT AND
  REMEDIES

  	
   

  
	
  8.01

  	
  Events of Default.

  	
   

  
	
  8.02

  	
  Remedies Upon Event
  of Default.

  	
   

  
	
  8.03

  	
  Application of Funds.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX.

  	
  ADMINISTRATIVE AGENT

  	
   

  
	
  9.01

  	
  Appointment and
  Authority.

  	
   

  
	
  9.02

  	
  Rights as a Lender.

  	
   

  
	
  9.03

  	
  Exculpatory Provisions.

  	
   

  
	
  9.04

  	
  Reliance by
  Administrative Agent.

  	
   

  
	
  9.05

  	
  Delegation of Duties.

  	
   

  
	
  9.06

  	
  Resignation
  of Administrative Agent.

  	
   

  
	
  9.07

  	
  Non-Reliance
  on Administrative Agent and Other Lenders.

  	
   

  
	
  9.08

  	
  No Other Duties, Etc.

  	
   

  
	
  9.09

  	
  Administrative
  Agent May File Proofs of Claim.

  	
   

  
	
  9.10

  	
  Collateral Matters.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X.

  	
  MISCELLANEOUS

  	
   

  
	
  10.01

  	
  Amendments, Etc.

  	
   

  
	
  10.02

  	
  Notices;
  Effectiveness; Electronic Communication.

  	
   

  
	
  10.03

  	
  No Waiver;
  Cumulative Remedies.

  	
   

  
	
  10.04

  	
  Expenses;
  Indemnity; Damage Waiver.

  	
   

  
	
  10.05

  	
  Payments Set Aside.

  	
   

  
	
  10.06

  	
  Successors and Assigns.

  	
   

  
	
  10.07

  	
  Treatment
  of Certain Information; Confidentiality.

  	
   

  
	
  10.08

  	
  Right of Setoff.

  	
   

  
	
  10.09

  	
  Interest Rate
  Limitation.

  	
   

  
	
  10.10

  	
  Counterparts;
  Integration; Effectiveness.

  	
   

  
	
  10.11

  	
  Survival
  of Representations and Warranties.

  	
   

  
	
  10.12

  	
  Concerning
  Joint and Several Liability of the Borrowers

  	
   

  
	
  10.13

  	
  Severability.

  	
   

  
	
  10.14

  	
  Replacement of Lenders.

  	
   

  
	
  10.15

  	
  Collateral Security.

  	
   

  
	
  10.16

  	
  Existing
  Credit Agreement Superseded

  	
   

  
	
  10.17

  	
  Governing Law;
  Jurisdiction; Etc.

  	
   

  
	
  10.18

  	
  Waiver of Jury Trial.

  	
   

  
	
  10.19

  	
  USA PATRIOT Act Notice.

  	
   

  
	
   

  	
   

  
	
  SIGNATURES

  	
   

  

 

iii

 

	
  SCHEDULES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1

  	
  Borrowers

  	
   

  
	
   

  	
  2.01

  	
  Commitments and Applicable
  Percentages

  	
   

  
	
   

  	
  5.08

  	
  Litigation

  	
   

  
	
   

  	
  5.13(a)

  	
  Subsidiaries; Equity
  Interests; Capitalization

  	
   

  
	
   

  	
  5.13(b)

  	
  Series A Holders

  	
   

  
	
   

  	
  5.13(c)

  	
  Options

  	
   

  
	
   

  	
  5.16

  	
  Environmental Compliance

  	
   

  
	
   

  	
  5.18

  	
  Certain Transactions

  	
   

  
	
   

  	
  7.01

  	
  Existing Liens

  	
   

  
	
   

  	
  7.02

  	
  Existing Investments

  	
   

  
	
   

  	
  7.03

  	
  Existing Indebtedness

  	
   

  
	
   

  	
  10.02

  	
  Administrative Agent’s
  Office; Certain Addresses for Notices

  	
   

  
	
   

  	
  10.06

  	
  Processing and Recordation
  Fees

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  
	
   

  	
   

  	
  Form
  of

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A

  	
  Loan Notice

  	
   

  
	
   

  	
  B

  	
  Swing Line Loan Notice

  	
   

  
	
   

  	
  C

  	
  Note

  	
   

  
	
   

  	
  D

  	
  Compliance Certificate

  	
   

  
	
   

  	
  E

  	
  Assignment and Assumption

  	
   

  
	
   

  	
  F

  	
  Subordination Agreement

  	
   

  
	
   

  	
  G

  	
  Joinder Agreement

  	
   

  
	
   

  	
  H

  	
  Instrument of Accession

  	
   

  
	
   

  	
  I

  	
  Existing Letters of Credit

  	
   

  
	
   

  	
  J

  	
  Perfection Certificate

  	
   

  
					

 

iv

 

AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT

 

This AMENDED AND RESTATED
REVOLVING CREDIT AGREEMENT (this “Agreement”) is entered into as of
April 28, 2005 by and among CASELLA
WASTE SYSTEMS INC., a Delaware
corporation (the “Parent”), its Subsidiaries (other than the Excluded
Subsidiaries and the Non-Borrower Subsidiaries) listed on Schedule 1
hereto (the Parent and such Subsidiaries herein collectively referred to as the
“Borrowers”), each lender from time to time party hereto (collectively,
the “Lenders” and individually, a “Lender”), and BANK OF AMERICA,
N.A., as Administrative Agent, Swing Line
Lender and L/C Issuer.

 

WHEREAS, the Borrowers, Fleet
National Bank as the Administrative Agent and certain lending institutions are
parties to that certain Second Amended and Restated Revolving Credit and Term
Loan Agreement dated as of January 24, 2003 (as amended, the “Existing
Credit Agreement”), pursuant to which the lenders thereunder have made
loans and other extensions of credit (the “Existing Loans”) to the
Borrowers;

 

WHEREAS, the Borrowers have
requested, among other things, that the Lenders amend and restate the Existing
Credit Agreement, and the Lenders are willing to do so on the terms and
conditions set forth herein;

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements herein contained and other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto covenant and agree that on the Closing
Date, the Existing Credit Agreement shall be amended and restated in its
entirety by this Agreement, the terms of which are as follows:

 

ARTICLE
I.

DEFINITIONS AND ACCOUNTING TERMS

 

1.01                        Defined Terms.   As used in this Agreement, the following
terms shall have the meanings set forth below:

 

“Acceding Lender” has the
meaning set forth in Section 2.14 hereof.

 

“Accountants”  has the meaning set forth in Section
5.05(a) hereof.

 

“Acquired Business”
means a business acquired by any Borrower, whether through asset or stock
purchases, merger, consolidation or otherwise, during the period reported in
the most recent financial statements delivered to the Lenders pursuant to Section
6.04 hereof.

 

“Administrative Agent”
means Bank of America in its capacity as administrative agent under any of the
Loan Documents, or any successor administrative agent.

 

“Administrative Agent’s
Office” means the Administrative Agent’s address and, as appropriate, account
as set forth on Schedule 10.02, or such other address or account as the
Administrative Agent may from time to time notify to the Borrowers and the
Lenders.

 

1

 

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

 

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

 

“Aggregate Commitments”
means the Commitments of the Lenders, as in effect from time to time, which
amount shall initially equal $350,000,000, as such amount may be reduced or
increased pursuant to the terms hereof.

 

“Agreement” means
this Amended and Restated Credit Agreement.

 

“Applicable Laws” has
the meaning set forth in Section 6.10.

 

“Applicable Percentage”
means, as the context requires, with respect to any Lender as of any date, such
Lender’s portion of and participating interest in, calculated as a percentage
(carried out to the ninth decimal place), of either (a) the sum of (i) the
outstanding principal amount of all Committed Loans on such date, plus
(ii) the aggregate principal amount of all Swing Line Loans on such date, plus
(iii) all L/C Obligations on such date (collectively, the “Revolving
Percentage”), or (b) if applicable, the outstanding principal amount of the
Term B Loan (the “Term B Loan Percentage”).  If the Commitment of any Lender to make
Committed Loans and the obligation of the L/C Issuer to make L/C Credit
Extensions have been terminated pursuant to Section 8.02 or if the
Aggregate Commitments have expired, then the Revolving Percentage of each
Lender shall be determined based on the Revolving Percentage of such Lender
most recently in effect, giving effect to any subsequent assignments.  The initial Applicable Percentage of each
Lender is set forth opposite the name of such Lender on Schedule 2.01 or
in the Assignment and Assumption or Instrument of Accession, as the case may
be, pursuant to which such Lender becomes a party hereto, as applicable.

 

“Applicable Rate”
means the following percentages per annum, based upon the Ratio of Consolidated
Total Funded Debt to Consolidated EBITDA as set forth in the most recent
Compliance Certificate received by the Administrative Agent pursuant to Section 6.04(c):

 

2

 

Applicable Rate

 

	
  Level

  	
   

  	
  Ratio of
  Consolidated

  Total Funded Debt to

  Consolidated

  EBITDA

  	
   

  	
  Base Rate

  Loans

  	
   

  	
  Eurodollar

  Rate Loans

  	
   

  	
  Commitment

  Fee

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I

  	
   

  	
  Less than 2.75:1.0

  	
   

  	
  0.00

  	
  %

  	
  1.50

  	
  %

  	
  0.375

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II

  	
   

  	
  Greater than or equal to
  2.75:1.0 and less than 3.25:1.0

  	
   

  	
  0.00

  	
  %

  	
  1.75

  	
  %

  	
  0.375

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III

  	
   

  	
  Greater than or equal to
  3.25:1.0 and less than 3.75:1.0

  	
   

  	
  0.25

  	
  %

  	
  2.00

  	
  %

  	
  0.500

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IV

  	
   

  	
  Greater than or equal to
  3.75:1.0 and less than 4.25:1.0

  	
   

  	
  0.50

  	
  %

  	
  2.25

  	
  %

  	
  0.500

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V

  	
   

  	
  Greater than or equal to
  4.25:1.0

  	
   

  	
  0.50

  	
  %

  	
  2.50

  	
  %

  	
  0.500

  	
  %

  

 

Any increase or decrease in
the Applicable Rate resulting from a change in the ratio of Consolidated Total
Funded Debt to Consolidated EBITDA shall become effective as of the first
Business Day immediately following the date a Compliance Certificate is
delivered pursuant to Section 6.04(c); provided, however,
that if a Compliance Certificate is not delivered within ten (10) days after
the time periods specified in such Section, then Pricing Level V shall apply as
of the first Business Day thereafter, subject to prospective adjustment upon
actual receipt of such Compliance Certificate. 
The Applicable Rate in effect from the Closing Date through the First
Business Day after receipt of the first Compliance Certificate required to be
delivered after the Closing Date shall be Pricing Level III.

 

“Approved Fund” means
any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a
Lender or (c) an entity or an Affiliate of an entity that administers or
manages a Lender.

 

“Arranger” means Banc
of America Securities LLC, in its capacity as sole lead arranger and sole book
manager.

 

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

 

“Assignment and
Assumption” means an assignment and assumption entered into by a Lender and
an Eligible Assignee (with the consent of any party whose consent is required
by Section 10.06(b)), and accepted by the Administrative Agent, in
substantially the form of Exhibit E or any other form approved by the
Administrative Agent.

 

3

 

“Attributable
Indebtedness” means, on any date, (a) in respect of any Capitalized Leases
of any Person, the capitalized amount thereof that would appear on a balance
sheet of such Person prepared as of such date in accordance with GAAP, and (b)
in respect of any obligations under Synthetic Leases, the capitalized amount of
the remaining lease payments under the relevant lease that would appear on a
balance sheet of such Person prepared as of such date in accordance with GAAP
if such lease were accounted for as a Capitalized Leases.

 

“Audited Financial
Statements” means the audited consolidated balance sheet of the Parent and
its Subsidiaries for the fiscal year ended April 30, 2004,
and the related consolidated statements of operations and cash flows for such
fiscal year, including the notes thereto.

 

“Availability
Period” means the period from and including the Closing Date to the
earliest of (a) the Maturity Date, (b) the date of termination of the Aggregate
Commitments in full pursuant to Section 2.06, and (c) the date of
termination of the Commitment of each Lender to make Loans and of the
obligation of the L/C Issuer to make L/C Credit Extensions pursuant to Section
8.02.

 

“Balance
Sheet Date” means April 30, 2004.

 

“Bank of America”
means Bank of America, N.A. and its successors.

 

“Base Rate”  means for any day a fluctuating
rate per annum equal to the higher of (a) the Federal Funds Rate plus 1/2 of 1%
and (b) the rate of interest in effect for such day as publicly announced from
time to time by Bank of America as its “prime rate.”  The “prime rate” is a rate set by Bank of
America based upon various factors including Bank of America’s costs and
desired return, general economic conditions and other factors, and is used as a
reference point for pricing some loans, which may be priced at, above, or below
such announced rate.  Any change in such
rate announced by Bank of America shall take effect at the opening of business
on the day specified in the public announcement of such change.

 

“Base Rate Committed Loan”
means a Committed Loan that is a Base Rate Loan.

 

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

 

“Benefit
Amount” has the meaning specified in Section 10.12(f) hereto.

 

“Borrowers” has the
meaning specified in the introductory paragraph hereto.

 

“Borrowers Materials”
has the meaning specified in Section 6.02.

 

“Borrowing” means a
Committed Borrowing, a Swing Line Borrowing, or the Term B Loan Borrowing, as
the context may require.

 

“Business Day” means
any day other than a Saturday, Sunday or other day on which commercial banks
are authorized to close under the Applicable Laws of, or are in fact closed in,
the state where the Administrative Agent’s Office is located and, if such day
relates to any Eurodollar Rate Loan, means any such day on which dealings in
Dollar deposits are conducted by and between banks in the London interbank
eurodollar market.

 

4

 

“Capital Assets”
means fixed assets, both tangible (such as land, buildings, fixtures, machinery
and equipment) and intangible (such as patents, copyrights, trademarks,
franchises and goodwill); provided that Capital Assets shall not include
any item customarily charged directly to expense or depreciated over a useful
life of twelve (12) months or less in accordance with GAAP.

 

“Capital Expenditures”
means amounts paid or Indebtedness incurred by any Person in connection with
(a) the purchase or lease by such Person of Capital Assets that would be
required to be capitalized and shown on the balance sheet of such Person in
accordance with GAAP or (b) the lease of any assets by such Person as lessee
under any Synthetic Lease to the extent that such assets would have been
Capital Assets had the Synthetic Lease been treated for accounting purposes as
a Capitalized Lease; provided  that solely for purposes of this
definition of Capital Expenditures, Capital Assets shall not include (a)
landfill operating and management leases (even if required to be capitalized
under GAAP), and (b) any item obtained through a
Permitted Acquisition.

 

“Capitalized Leases”
means leases under which any Borrower is the lessee or obligor, the discounted
future rental payment obligations under which are required to be capitalized on
the balance sheet of the lessee or obligor in accordance with GAAP.

 

“Cash Collateralize”
has the meaning specified in Section 2.03(g).

 

“Cellulose Joint Venture”
means the joint venture between U.S. Fiber and Greenstone Industries, Inc. with
respect to the cellulose fibers business, including the manufacturing,
marketing and selling of insulation and other cellulose-based products.

 

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

 

“Closing Date” means
the first date all the conditions precedent in Section 4.01 are
satisfied or waived in accordance with Section 10.01.

 

“Code” means the
Internal Revenue Code of 1986.

 

“Collateral” means
all of the property, rights and interests of the Borrowers that are or are
intended to be subject to the security interests and mortgages created by the
Security Documents.

 

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

 

5

 

“Committed Borrowing”
means a Borrowing consisting of simultaneous Committed Loans of the same Type
and, in the case of Eurodollar Rate Loans, having the same Interest Period,
made by the Lenders pursuant to Section 2.01 or Section 2.14.

 

“Committed Loan” has
the meaning specified in Section 2.01.

 

“Committed Loan Notice”
means a notice of (a) a Committed Borrowing, (b) a conversion of Committed
Loans from one Type to the other, or (c) a continuation of Eurodollar Rate
Loans, pursuant to Section 2.02(a), which, if in writing, shall be
substantially in the form of Exhibit A.

 

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

 

“Conforming Amendment”
has the meaning set forth in Section 2.14 hereof.

 

“Consolidated Adjusted
Net Income” means, for any period, Consolidated Net Income (or Loss) plus,
to the extent deducted and without duplication, (a) adjustments for non-cash,
non-recurring charges related to losses from asset impairment charges or
resulting from sales of the Specified Entities or their assets up to an
aggregate amount of $15,000,000, (b) the non-recurring, non-cash write-off of
debt issuance expenses related to the refinancing of Indebtedness under the
Existing Credit Agreement, such write-off not to exceed $4,000,000; and (c)
charges incurred by the Borrowers in connection with unsuccessful landfill
developments up to an aggregate of $3,000,000.

 

“Consolidated EBITDA”  means, for any period, Consolidated Adjusted
Net Income plus, to the extent that such charge was deducted in
determining Consolidated Adjusted Net Income in the relevant period and without
duplication, (a) interest expense for such period; (b) income taxes for such
period; (c) amortization expense for such period; and (d) depreciation expense
for such period.  For all purposes other
than calculating the financial covenant set forth in Section 7.11(a)
hereof, the Borrowers may include in Consolidated EBITDA the EBITDA for the
prior twelve (12) months of companies acquired by the Borrowers during the
respective reporting period (without duplication with respect to the
adjustments set forth above) only if (A) the financial statements of such
Acquired Business or New Subsidiary have been audited, for the period sought to
be included, by an independent accounting firm satisfactory to the
Administrative Agent, or (B) the Administrative Agent consents to such
inclusion after being furnished with other acceptable financial statements.
Furthermore, EBITDA may be further adjusted (other than when calculating the
financial covenant set forth in Section 7.11(a) hereof) to add-back
non-recurring private company expenses which are discontinued upon such
acquisition (such as owner’s compensation), as approved by the Administrative
Agent.  Simultaneously with the delivery
of the financial statements referred to in (A) and (B) above, a Responsible
Officer of the Borrowers shall deliver to the Administrative Agent a Compliance
Certificate and appropriate documentation certifying the historical operating
results, adjustments and balance sheet of the Acquired Business.

 

“Consolidated Net Income
(or Loss)” means the consolidated net income (or loss) of the Parent and
its Subsidiaries after deduction of all expenses, taxes, and other proper
charges determined in accordance with GAAP, less, to the extent included
therein, (i) gains from 

 

6

 

extraordinary items, (ii) any income from
discontinued operations, and (iii) income attributable to any Investment in any
Excluded Subsidiaries; provided, however, that consolidated net
income shall not be reduced pursuant to this clause (iii) by actual cash
dividends or distributions received from any Excluded Subsidiary.

 

“Consolidated Net Worth”
means the excess of Consolidated Total Assets over Consolidated Total
Liabilities plus, without duplication, the liquidation value of the
issued and outstanding Series A Preferred Stock less, to the extent
otherwise includable in the computations of Consolidated Net Worth, any
subscriptions receivable; provided that, commencing on the first day of
the second fiscal quarter of the Borrowers commencing on or about August 1,
2006, the liquidation value of the issued and outstanding Series A Preferred
Stock shall not be included in the calculation of Consolidated Net Worth.

 

“Consolidated Senior Funded Debt” means, at
any time of determination, (a) Consolidated Total Funded Debt minus (b)
Subordinated Debt outstanding as of such date plus (c) any and all
scheduled principal payments in respect of Seller Subordinated Debt that will
become due and payable during the next successive period of four fiscal
quarters.

 

“Consolidated Total
Assets” means the sum of all assets (“consolidated  balance  sheet
assets”) of the Parent and its Subsidiaries determined on a consolidated
basis in accordance with GAAP, exclusive, without duplication, of Equity
Interests in and the assets of the Excluded Subsidiaries.

 

“Consolidated Total
Funded Debt” means, at any time of determination with respect to the
Borrowers, collectively, without duplication, whether classified as
Indebtedness or otherwise on the consolidated balance sheet of the Borrowers,
(a) the aggregate amount of Indebtedness for (i) borrowed money or credit
obtained or other similar monetary obligations, direct or indirect, (including
any unpaid reimbursement obligations with respect to letters of credit, but
excluding any contingent obligations with respect to letters of credit
outstanding), (ii) all obligations evidenced by notes, bonds, debentures or
other similar debt instruments (other than Performance Bonds), (iii) the
deferred purchase price of assets (other than trade payables incurred in the
ordinary course of business and holdbacks), (iv) all obligations, liabilities
and Indebtedness under Capitalized Leases and Synthetic Leases which correspond
to principal, including, without limitation, Indebtedness with respect to
capitalization of landfill operating contract obligations, to the extent
capitalized under GAAP, plus (b) Indebtedness of the type referred to in
clause (a) of another Person guaranteed by the any of the Borrowers, plus
(c) commencing on the first day of the second fiscal quarter of the Borrowers
commencing on or about August 1, 2006, the liquidation value of the Series A
Preferred Stock.

 

“Consolidated Total Interest Expense” means,
for any period, the aggregate amount of interest expense required to be paid or
accrued by the Borrowers during such period on all Indebtedness of the
Borrowers outstanding during all or any part of such period, whether such
interest was or is required to be reflected as an item of expense or
capitalized, including payments consisting of interest in respect of any Capitalized
Lease or any Synthetic Lease, and including commitment fees, agency fees,
balance deficiency fees and similar fees or expenses for such period in
connection with the borrowing of money, but excluding therefrom (a) the
non-cash amortization of debt issuance costs and (b) the write-off of deferred
financing fees and

 

7

 

charges in connection with the repayment of
any Indebtedness and in connection with the Existing Credit Agreement, in each
case, that are classified as interest under GAAP.

 

“Consolidated Total Liabilities” means all
liabilities of the Parent and its Subsidiaries determined on a consolidated
basis in accordance with GAAP, exclusive of the liabilities of the Excluded
Subsidiaries which are non-recourse to the Borrowers.

 

“Consulting Engineer” means an environmental
consulting firm reasonably acceptable to the Administrative Agent.

 

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

 

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

 

“Credit Extension”
means each of the following: (a) a Borrowing and (b) an L/C Credit Extension.

 

“Debtor Relief Laws”
means the Bankruptcy Code of the United States, and all other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, reorganization, or similar
debtor relief laws of the United States or other applicable jurisdictions from
time to time in effect and affecting the rights of creditors generally.

 

“Default” means any
event or condition that constitutes an Event of Default or that, with the
giving of any notice, the passage of time, or both, would be an Event of
Default.

 

“Default Rate” means
(a) when used with respect to Obligations other than Letter of Credit Fees, an
interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate,
if any, applicable to Base Rate Loans plus (iii) 2% per annum; provided,
however, that with respect to a Eurodollar Rate Loan, the Default Rate
shall be an interest rate equal to the interest rate (including any Applicable
Rate) otherwise applicable to such Loan plus 2% per annum, and (b) when used
with respect to Letter of Credit Fees, a rate equal to the Applicable Rate plus
2% per annum.

 

“Defaulting Lender”
means any Lender that (a) has failed to fund any portion of the Committed
Loans, participations in L/C Obligations or participations in Swing Line Loans
required to be funded by it hereunder within one Business Day of the date
required to be funded by it hereunder, (b) has otherwise failed to pay over to
the Administrative Agent or any other Lender any other amount required to be
paid by it hereunder within one Business Day of the date when due, unless the
subject of a good faith dispute, or (c) has been deemed insolvent or become the
subject of a bankruptcy or insolvency proceeding.

 

8

 

“De Minimis Subsidiaries” means any
Subsidiary of the Parent whose assets and annual gross revenues do not, in each
case, exceed $1,000,000; provided that (i) the aggregate assets of all
such Subsidiaries taken as a whole shall not exceed $2,000,000, and (ii) the
aggregate annual gross revenues of all such Subsidiaries taken as a whole shall
not exceed $2,000,000.

 

“Disposition” or “Dispose”
means the sale, transfer, license, lease or other disposition (including any
sale and leaseback transaction) of any property by any Person, including any
sale, assignment, transfer or other disposal, with or without recourse, of any
notes or accounts receivable or any rights and claims associated therewith.

 

“Distribution” means
the declaration or payment of any dividend on or in respect of any shares of
any class of capital stock of any Person, other than dividends payable solely
in shares of common stock of such Person; the purchase, redemption, defeasance,
retirement or other acquisition of any shares of any class of capital stock of
such Person, directly or indirectly through a Subsidiary of such Person or
otherwise and whether in the form of increases in the liquidation value of such
shares or otherwise (including the setting apart of assets for a sinking or
other analogous fund to be used for such purpose); the return of capital by any
Person to its shareholders as such; or any other distribution on or in respect
of any shares of any class of capital stock of such Person.

 

“Dollar” and “$”
mean lawful money of the United States.

 

“Domestic Subsidiary”
means any Subsidiary that is organized under the laws of any political
subdivision of the United States.

 

“Eligible Assignee”
means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved Fund; and (d)
any other Person (other than a natural person) approved by (i) the
Administrative Agent, the L/C Issuer and the Swing Line Lender in the case of
clause (d) of this definition, and (ii) unless an Event of Default has occurred
or is continuing, the Borrower (A) with respect to clauses (a), (b) or (c) of
this definition (unless such assignment would not result in increased costs to
the Borrowers hereunder), or (B) with respect to clause (d) of this definition
(each such approval not to be unreasonably withheld or delayed); provided
that notwithstanding the foregoing, “Eligible Assignee” shall not include any
of the Borrowers or any of the Borrowers’ Affiliates or Subsidiaries.

 

“Employee Benefit Plan”
means any employee benefit plan within the meaning of §3(3) of ERISA maintained
or contributed to by any Borrower or any ERISA Affiliate, other than a
Guaranteed Pension Plan or a Multiemployer Plan.

 

“Environmental Compliance Certificate” means a certificate specifying
the nature of a Default or Event of Default relating to an Environmental
matter, the period of existence thereof and what action the Borrowers propose
to take with respect thereto.

 

“Environmental Laws”
has the meaning set forth in Section 5.16(a) hereof.

 

“Environmental Liability”
means any liability, contingent or otherwise (including any liability for
damages, costs of environmental remediation, fines, penalties or indemnities)
of any of the Borrowers directly or indirectly resulting from or based upon (a)
violation of any

 

9

 

Environmental Law, (b) the generation, use,
handling, transportation, storage, treatment or disposal of any Hazardous
Materials, (c) exposure to any Hazardous Materials, (d) the release or
threatened release of any Hazardous Materials into the environment or (e) any
contract, agreement or other consensual arrangement pursuant to which liability
is assumed or imposed with respect to any of the foregoing.

 

“Equity Interests”
means, with respect to any Person, all of the shares of capital stock of (or
other ownership or profit interests in) such Person, all of the warrants,
options or other rights for the purchase or acquisition from such Person of
shares of capital stock of (or other ownership or profit interests in) such
Person, all of the securities convertible into or exchangeable for shares of
capital stock of (or other ownership or profit interests in) such Person or
warrants, rights or options for the purchase or acquisition from such Person of
such shares (or such other interests), and all of the other ownership or profit
interests in such Person (including partnership, member or trust interests
therein), whether voting or nonvoting, and whether or not such shares,
warrants, options, rights or other interests are outstanding on any date of
determination.

 

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

 

“ERISA Affiliate” means any Person which is
treated as a single employer with any Borrower under §414 of the Code.

 

“ERISA Reportable Event”
means a reportable event with respect to a Guaranteed Pension Plan within the
meaning of §4043 of ERISA and the regulations promulgated thereunder as to
which the requirement of notice has not been waived.

 

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

 

“Eurodollar Rate Loan”
means a Loan that bears interest at a rate based on the Eurodollar Rate.

 

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

 

“Excluded Subsidiaries”
means any Subsidiary and any joint venture, partnership or other Person in
which the Parent or a Subsidiary has a minority ownership interest, which in
each case is designated as an “Excluded Subsidiary” and listed on Schedule 5.13(a) and any other Person

 

10

 

from time to time designated by the Parent as
an “Excluded Subsidiary;” provided, that the Parent may not designate a
Person as an “Excluded Subsidiary” if (a) the Investment made in such Person,
together with all Investments made in other Excluded Subsidiaries would exceed
that permitted by Section 7.02 hereof, or (b) such Person would be
required to be a guarantor of the Subordinated Debt.

 

“Excluded Taxes”
means, with respect to the Administrative Agent, any Lender, the L/C Issuer or
any other recipient of any payment to be made by or on account of any
obligation of the Borrowers hereunder, (a) taxes imposed on or measured by its
overall net income (however denominated), and franchise taxes imposed on it (in
lieu of net income taxes), by the jurisdiction (or any political subdivision
thereof) under the laws of which such recipient is organized or in which its
principal office is located or, in the case of any Lender, in which its
applicable lending office is located, (b) any branch profits taxes imposed by
the United States or any similar tax imposed by any other jurisdiction in which
any of the Borrowers is located and (c) in the case of a Non-U.S. Lender (other
than an assignee pursuant to a request by the Borrower under Section 10.14),
any withholding tax that is imposed on amounts payable to such Non-U.S. Lender
at the time such Non-U.S. Lender becomes a party hereto (or designates a new
lending office) or is attributable to such Non-U.S. Lender’s failure or
inability (other than as a result of a Change in Law after such Non-U.S. Lender
becomes a party hereto) to comply with Section 3.01(b).

 

“Existing Credit
Agreement” has the meaning specified in the introductory paragraph hereto.

 

“Existing Letters of
Credit” means all “Letters of Credit” (as defined in the Existing Credit
Agreement) set forth in Exhibit I hereto.

 

“FCR”  means FCR, Inc., a
Delaware corporation and a wholly-owned Subsidiary of KTI.

 

“Federal Funds Rate”
means, for any day, the rate per annum equal to the weighted average of the
rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers on such day, as published by
the Federal Reserve Bank of New York on the Business Day next succeeding such
day; provided that (a) if such day is not a Business Day, the Federal
Funds Rate for such day shall be such rate on such transactions on the next
preceding Business Day as so published on the next succeeding Business Day, and
(b) if no such rate is so published on such next succeeding Business Day, the
Federal Funds Rate for such day shall be the average rate (rounded upward, if
necessary, to a whole multiple of 1/100 of 1%) charged to Bank of America on
such day on such transactions as determined by the Administrative Agent.

 

“Fee Letter” means
the letter agreement, dated March 21, 2005, among the Borrowers, the
Administrative Agent and the Arranger.

 

“Financial L/C(s)”
means Letter(s) of Credit where the event which triggers payment is financial,
such as the failure to pay money, and not performance related, such as failure
to ship a product or provide a service, as set forth in greater detail in the letter
dated March 30, 1995 from

 

11

 

the Board of Governors of the Federal Reserve
System or in any applicable directive or letter ruling of the Board of
Governors of the Federal Reserve System issued subsequent thereto.

 

“Financial L/C Fee” has the meaning specified in Section
2.3(i)(i) hereto.

 

“Foreign Subsidiary”
means each Subsidiary of any Borrower (whether direct or indirect, existing on
the date hereof or acquired or formed hereafter in accordance with the
provisions hereof) which is incorporated under the laws of a jurisdiction other
than a State or other jurisdiction of the United States of America.

 

“FRB” means the Board
of Governors of the Federal Reserve System of the United States.

 

“Fronting Fee” has the
meaning specified in Section 2.03(i)(iii) hereto.

 

“Fund” means any
Person (other than a natural person) that is (or will be) engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar
extensions of credit in the ordinary course of its business.

 

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

 

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

 

“Greenfiber” means U.S. GreenFiber LLC, a
Delaware limited liability company in which U.S. Fiber owns a 50% Equity
Interest and through which the Cellulose Joint Venture is conducted.

 

“Guaranteed Pension Plan”
means any employee pension benefit plan within the meaning of §3(2) of ERISA
maintained or contributed to by any Borrower or any ERISA Affiliate the
benefits of which are guaranteed on termination in full or in part by the PBGC
pursuant to Title IV of ERISA, other than a Multiemployer Plan.

 

“Hazardous Materials”
means any hazardous waste, as defined by 42 U.S.C. §6903(5), any hazardous
substances as defined by 42 U.S.C. §9601(14), any pollutant or contaminant as
defined by 42 U.S.C. §9601(33) and any waste, hazardous waste, dangerous goods,
contaminants, pollutants, toxic substance, oil or hazardous materials or other
chemicals or substances regulated by any Environmental Laws.

 

12

 

“Increase Closing Date”
has the meaning set forth in Section 2.14 hereof.

 

“Indebtedness” means, as to any Person and
whether recourse is secured by or is otherwise available against all or only a
portion of the assets of such Person and whether or not contingent, but without
duplication:

 

(a)                                  every obligation of such Person for money
borrowed,

 

(b)                                 every obligation of such Person evidenced by
bonds, debentures, notes or other similar instruments, including obligations
incurred in connection with the acquisition of property, assets or businesses,

 

(c)                                  every reimbursement obligation of such Person
with respect to letters of credit, bankers’ acceptances or similar facilities
issued for the account of such Person,

 

(d)                                 every obligation of such Person issued or
assumed as the deferred purchase price of property or services (including
securities repurchase agreements but excluding (x) trade accounts payable or
accrued liabilities arising in the ordinary course of business which are not
overdue in accordance with their terms or the Borrowers’ normal or ordinary
business practices or which are being contested in good faith and holdbacks,
and (y) guaranteed or contingent royalty payments made in connection with the
purchase or operation of landfills and other types of disposal facilities),

 

(e)                                  every obligation of such Person under any
Capitalized Lease,

 

(f)                                    every obligation of such Person under any
Synthetic Lease,

 

(g)                                 all sales by such Person of (i) accounts or
general intangibles for money due or to become due, (ii) chattel paper,
instruments or documents creating or evidencing a right to payment of money or
(iii) other receivables (collectively “receivables”), whether pursuant
to a purchase facility or otherwise, other than in connection with the
disposition of the business operations of such Person relating thereto or a
disposition of defaulted receivables for collection and not as a financing
arrangement, and together with any obligation of such Person to pay any
discount, interest, fees, indemnities, penalties, recourse, expenses or other
amounts in connection therewith,

 

(h)                                 every obligation of such Person (an “equity related purchase obligation”) to
purchase, redeem, retire or otherwise acquire for value any Equity Interests of
any class issued by such Person, any warrants, options or other rights to
acquire any such shares, or any rights measured by the value of such shares,
warrants, options or other rights,

 

(i)                                     every obligation of such Person under Swap
Contracts,

 

(j)                                     every obligation in respect of Indebtedness
of any other entity (including any partnership in which such Person is a
general partner) to the extent that such Person is liable therefor as a result
of such Person’s ownership interest in or other relationship

 

13

 

with such entity, except to
the extent that the terms of such Indebtedness provide that such Person is not
liable therefor and such terms are enforceable under Applicable Law,

 

(k)                                  every obligation, contingent or otherwise, of
such Person guaranteeing, or having the economic effect of guarantying or otherwise
acting as surety for, any obligation of a type described in any of clauses (a)
through (j) (the “primary obligation”) of another Person (the “primary
obligor”), in any manner, whether directly or indirectly, and including,
without limitation, any obligation of such Person (i) to purchase or pay (or
advance or supply funds for the purchase of) any security for the payment of
such primary obligation, (ii) to purchase property, securities or services for
the purpose of assuring the payment of such primary obligation, or (iii) to
maintain working capital, equity capital or other financial statement condition
or liquidity of the primary obligor so as to enable the primary obligor to pay
such primary obligation.

 

The “amount” or “principal amount” of any Indebtedness
at any time of determination represented by (t) any Indebtedness, issued at a
price that is less than the principal amount at maturity thereof, shall be the
amount of the liability in respect thereof determined in accordance with GAAP,
(u) any Capitalized Lease shall be the principal component of the aggregate of
the rentals obligation under such Capitalized Lease payable over the term
thereof that is not subject to termination by the lessee, (v) any sale of
receivables shall be the amount of unrecovered capital or principal investment
of the purchaser (other than the Borrower or any of its wholly-owned
Subsidiaries) thereof, excluding amounts representative of yield or interest
earned on such investment, (w) any Synthetic Lease shall be the stipulated loss
value, termination value or other equivalent amount, (x) any Swap Contract on
any date shall be the Swap Termination Value thereof as of such date, (y) any
equity related purchase obligation shall be the maximum fixed redemption or
purchase price thereof that is payable upon a mandatory redemption or purchase
of such equity inclusive of any accrued and unpaid dividends to be comprised in
such redemption or purchase price and (z) any guarantee or other contingent
liability referred to in clause (k) shall be an amount equal to the stated or
determinable amount of the primary obligation in respect of which such guaranty
or other contingent obligation is made or, if not stated or determinable, the
maximum reasonably anticipated liability in respect thereof (assuming such
Person is required to perform thereunder) as determined by such Person in good
faith based upon the principles set forth in this paragraph.

 

“Indemnitees” has the
meaning specified in Section 10.04(b).

 

“Indenture” means the Indenture dated as of January 24, 2003 among
the Parent, certain of its Subsidiaries as guarantors and U.S. Bank National
Association as trustee, with respect to the Senior Subordinated Notes.

 

“Information” has the
meaning specified in Section 10.07.

 

“Instrument of Accession”
has the meaning set forth in Section 2.14 hereof.

 

“Insurance Subsidiary”
means Casella Insurance Company, a Vermont corporation and a wholly-owned
Subsidiary of the Parent.

 

14

 

“Interest Payment Date”
means, (a) as to any Loan other than a Base Rate Loan, the last day of each
Interest Period applicable to such Loan and the Maturity Date; provided,
however, that if any Interest Period for a Eurodollar Rate Loan exceeds
three months, the respective dates that fall every three months after the
beginning of such Interest Period shall also be Interest Payment Dates; and (b)
as to any Base Rate Loan (including a Swing Line Loan), the last Business Day
of each March, June, September and December and the Maturity Date.

 

“Interest Period”
means, as to each Eurodollar Rate Loan, the period commencing on the date such
Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar
Rate Loan and ending on the date one, two, three or six months thereafter, as
selected by the Borrowers in their Committed Loan Notice; provided that:

 

(i)                                     any Interest Period that would otherwise end
on a day that is not a Business Day shall be extended to the next succeeding
Business Day unless such Business Day falls in another calendar month, in which
case such Interest Period shall end on the next preceding Business Day;

 

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

 

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

 

“Investment” means
all expenditures made and all liabilities incurred (contingently or otherwise)
for the acquisition of stock or Indebtedness of, or the amount of loans,
advances, capital contributions or transfers of property to, or in respect of
any guarantees (or other commitments as described under Indebtedness), or
obligations of, any Person.  In
determining the aggregate amount of Investments outstanding at any particular
time: (a) the amount of any Investment represented by a guaranty shall be taken
at not less than the principal amount of the obligations guaranteed and still
outstanding; (b) there shall be included as an Investment all interest accrued
with respect to Indebtedness constituting an Investment unless and until such
interest is paid; (c) there shall be deducted in respect of each such
Investment any amount received as a return of capital (but only by repurchase,
redemption, retirement, repayment, liquidating dividend or liquidating
distribution); (d) there shall not be deducted in respect of any Investment any
amounts received as earnings on such Investment, whether as dividends, interest
or otherwise, except that accrued interest included as provided in the
foregoing clause (b) may be deducted when paid; and (e) there shall not be
deducted or (as the case may be) added from the aggregate amount of Investments
any decrease or increase in the value thereof.

 

“IRBs” means
industrial revenue bonds or solid waste disposal bonds issued by or at the
request of the Borrowers.

 

“ISP” means, with
respect to any Letter of Credit, the “International Standby Practices 1998”
published by the Institute of International Banking Law & Practice (or such
later version thereof as may be in effect at the time of issuance).

 

15

 

“Issuer Documents”
means with respect to any Letter of Credit, the Letter of Credit Application,
and any other document, agreement and instrument entered into by the L/C Issuer
and the Borrower (or any Subsidiary) or in favor the L/C Issuer and relating to
any such Letter of Credit.

 

“KTI” means KTI,
Inc., a New Jersey corporation and a wholly-owned Subsidiary of the Parent.

 

“L/C Advance” means,
with respect to any Lender, such Lender’s funding of its participation in any
L/C Borrowing in accordance with its Revolving Percentage.

 

“L/C Borrowing” means
an extension of credit resulting from a drawing under any Letter of Credit
which has not been reimbursed on the date when made or refinanced as a
Committed Borrowing.

 

“L/C Credit Extension”
means, with respect to any Letter of Credit, the issuance thereof or extension
of the expiry date thereof, or the increase of the amount thereof.

 

“L/C Issuer” means
Bank of America in its capacity as issuer of Letters of Credit hereunder, or
any successor issuer of Letters of Credit hereunder.

 

“L/C Obligations”
means, as at any date of determination, the aggregate Maximum Drawing Amount plus
the aggregate of all Unreimbursed Amounts, including all L/C Borrowings.

 

“L/C Supported IRBs”
means IRBs backed by Letters of Credit issued hereunder.

 

“Lender”
has the meaning specified in the introductory paragraph hereto and, as the
context requires, includes the Swing Line Lender.

 

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

 

“Letter of Credit”
means any standby letter of credit issued hereunder and
shall include the Existing Letters of Credit.

 

“Letter of Credit
Application” means an application and agreement for the issuance or
amendment of a Letter of Credit in the form from time to time in use by the L/C
Issuer.

 

“Letter of Credit
Expiration Date” means the day that is seven days prior to the Maturity
Date then in effect (or, if such day is not a Business Day, the next preceding
Business Day).

 

“Letter of Credit Fee”
has the meaning specified in Section 2.03(i).

 

“Letter of Credit
Percentage” means the percentage per annum equal to the Applicable Rate for
Eurodollar Rate Loans, as in effect from time to time, as set forth in the
column “Eurodollar Rate Loans” in the table set forth in the definition of “Applicable
Rate” above.

 

16

 

“Lien” means any
mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance,
lien (statutory or other), charge or other security interest or preferential
arrangement in the nature of a security interest of any kind or nature
whatsoever (including any conditional sale or other title retention agreement,
any easement, right of way or other encumbrance on title to real property, and
any financing lease having substantially the same economic effect as any of the
foregoing).

 

“Loan” means an
extension of credit by a Lender to the Borrower under Article II in the
form of a Committed Loan or a Swing Line Loan or, to the extent applicable, any
Term B Loan advanced pursuant to Section 2.14 hereof.

 

“Loan Documents”
means this Agreement, each Note, each Issuer Document, the Letters of Credit,
the Security Documents, the Subordination Agreements, and any documents,
instruments or agreements executed in connection with any of the foregoing,
each as amended, modified, supplemented, or replaced from time to time.

 

“Loan Notice” means a
Committed Loan Notice or a Term B Loan Notice.

 

“Material Adverse Effect”
means a material adverse change in, or material adverse effect upon the
operations, business, properties or financial condition of the Borrowers taken
as a whole.

 

“Maturity Date” means April 28, 2010.

 

“Maximum Drawing Amount”
means the maximum drawing amount that beneficiaries may at any time draw under
Letters of Credit, as such aggregate amount may be reduced from time to time
pursuant to the terms of such Letters of Credit.  For purposes of computing the amount
available to be drawn under any Letter of Credit, the amount of such Letter of
Credit shall be determined in accordance with Section 1.06.  For all purposes of this Agreement, if on any
date of determination a Letter of Credit has expired by its terms but any
amount may still be drawn thereunder by reason of the operation of Rule 3.14 of
the ISP, such Letter of Credit shall be deemed to be “outstanding” in the
amount so remaining available to be drawn.

 

“Multiemployer Plan”
means any multiemployer plan within the meaning of §3(37) of ERISA maintained
or contributed to by any Borrower or any ERISA Affiliate.

 

“NELS” means New
England Landfill Solutions, LLC.

 

“New Subsidiary”
means a Subsidiary acquired or formed by any Borrower during the period
reported in the most recent financial statements delivered to the Lenders
pursuant to Section 6.04.

 

“Non-Borrower Subsidiary”
means the Insurance Subsidiary, the De Minimis Subsidiaries, the Foreign
Subsidiaries and NELS, all of which are listed on Schedule 5.13(a)
hereto.

 

“Non-U.S. Lender” has
the meaning set forth in Section 3.01(d) hereof.

 

17

 

“Note” means a
promissory note made by the Borrower in favor of a Lender evidencing Loans made
by such Lender, substantially in the form of Exhibit C, or, to the
extent applicable, if requested by a Term B Lender, a promissory note
evidencing a portion of the Term B Loan.

 

“Obligations” means
all advances to, and debts, liabilities, obligations, covenants and duties of,
any Borrower arising under any Loan Document or otherwise with respect to any
Loan or Letter of Credit, whether direct or indirect (including those acquired
by assumption), absolute or contingent, due or to become due, now existing or
hereafter arising and including interest and fees that accrue after the
commencement by or against any Borrower or any Affiliate thereof of any
proceeding under any Debtor Relief Laws naming such Person as the debtor in such
proceeding, regardless of whether such interest and fees are allowed claims in
such proceeding and any Swap Contracts of any of the Borrowers to which a
Lender or its Affiliate is a party.

 

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

 

“Outstanding Amount”
means (i) with respect to Committed Loans and Swing Line Loans on any date, the
aggregate outstanding principal amount thereof after giving effect to any
borrowings and prepayments or repayments of Committed Loans and Swing Line
Loans, as the case may be, occurring on such date; (ii) with respect to any L/C
Obligations on any date, the aggregate amount of all L/C Obligations on such
date after giving effect to any L/C Credit Extension occurring on such date and
any other changes in the aggregate amount of the L/C Obligations as of such
date, including as a result of any reimbursements by the Borrower of
Unreimbursed Amounts; and (iii) to the extent applicable, the outstanding
principal amount of the Term B Loan on any date.

 

“Participant” has the
meaning specified in Section 10.06(d).

 

“PBGC” means the
Pension Benefit Guaranty Corporation.

 

“Performance Bonds”
has the meaning specified in Section 7.03(d) hereto.

 

“Performance L/C”
means a Letter of Credit which is not a Financial L/C.

 

“Performance L/C Fee” has the meaning specified in Section
2.3(i)(ii) hereto.

 

“Permitted Acquisitions”
has the meaning specified in Section 7.04 hereto.

 

“Permitted
Investments” has the meaning specified in Section 7.02 hereto.

 

18

 

“Permitted Liens” has
the meaning specified in Section 7.01 hereto

 

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

 

“Platform” has the
meaning specified in Section 6.04.

 

“Pledge Agreement”
means the Amended and Restated Pledge Agreement, dated as of the Closing Date,
among certain of the Borrowers and the Administrative Agent.

 

“Post-Closing Increase” has the meaning set forth in Section 2.14
hereof.

 

“Real Property” means
all real property heretofore, now, or hereafter owned or leased by the
Borrowers.

 

“Register” has the
meaning specified in Section 10.06(c).

 

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

 

“Release” means the
broader of (i) the meaning specified for the term “Release” (or “Released”) in
the Comprehensive Environmental Response, Compensation and Liability Act of
1980, 42 U.S.C. §§9601 et  seq. (“CERCLA”) and (ii) the meaning
specified for the term “Disposal” (or “Disposed”) in the Resource
Conservation and Recovery Act of 1976, 42 U.S.C. §§6901 et  seq. (“RCRA”)
and regulations promulgated thereunder; provided, that in the event either
CERCLA or RCRA is amended so as to broaden the meaning of any term defined
thereby, such broader meaning shall apply as of the effective date of such
amendment and provided further, to the extent that the laws of a state or
province (or the federal laws of Canada applicable therein) wherein the
property lies establishes a meaning for “Release” or “Disposal” or any
analogous term which is broader than specified in either CERCLA or RCRA, such
broader meaning shall apply.

 

“Reportable Event”
means any of the events set forth in Section 4043(c) of ERISA, other than
events for which the 30 day notice period has been waived.

 

“Request for Credit
Extension” means (a) with respect to a Borrowing, conversion or
continuation of Committed Loans, a Committed Loan Notice, (b) with respect to
an L/C Credit Extension, a Letter of Credit Application, and (c) with respect
to a Swing Line Loan, a Swing Line Loan Notice.

 

“Required Lenders”
means, as of any date of determination, any combination of Lenders having more
than fifty percent (50%) of the sum of (a) the Aggregate Commitments plus
(b) to the extent applicable, the outstanding principal amount of the Term B Loan
(with the aggregate amount of any Lender’s risk participation and funded
participation in L/C Obligations and Swing Line Loans being deemed “held” by
such Lender for purposes of this definition); provided that for purposes
of this definition,  “Lender” shall not
include any Defaulting Lender; and provided,

 

19

 

further, that if the Commitments have been
terminated or if the Maturity Date has occurred, any combination of Lenders
holding more than fifty percent (50%) of the Total Outstandings.

 

“Responsible Officer”
means the chief executive officer, president, chief financial officer,
treasurer or assistant treasurer of the Parent. 
Any document delivered hereunder that is signed by a Responsible Officer
shall be conclusively presumed to have been authorized by all necessary
corporate, partnership and/or other action on the part of any Borrower and such
Responsible Officer shall be conclusively presumed to have acted on behalf of
such Borrower.

 

“Restricted Payment”
means, in relation to the Borrowers and the Non-Borrower Subsidiaries, any (a)
Distribution, (b) payment by any Borrower or Non-Borrower Subsidiaries to (i)
such Borrower’s or such Non-Borrower Subsidiary’s shareholders (or other equity
holders), in each case, other than to another Borrower, or (ii) to any
Affiliate of such Borrower or such Non-Borrower Subsidiary or any Affiliate of
such Borrower’s or such Non-Borrower Subsidiary’s shareholders (or other equity
holders), in each case, other than to another Borrower or (c) derivatives or
other transactions with any financial institution, commodities or stock
exchange or clearinghouse (a “Derivatives Counterparty”) obligating such
Borrower or such Non-Borrower Subsidiary to make payments to such Derivatives
Counterparty as a result of any change in market value of any capital stock of
such Borrower or such Non-Borrower Subsidiary.

 

“Revolving Lenders”
means the Lenders making Committed Loans.

 

“Revolving Percentage”
has the meaning specified in the definition of Applicable Percentage.

 

“Sarbanes-Oxley”
means the Sarbanes-Oxley Act of 2002.

 

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

 

“Security Agreement” means the Amended and
Restated Security Agreement, dated as of the Closing Date, among the Borrowers
and the Administrative Agent.

 

“Security Documents”
means the Security Agreement, the Pledge Agreement each
as amended and in effect from time to time, and any additional documents
evidencing or perfecting the Administrative Agent’s Lien on the assets of the
applicable Borrowers for the benefit of the applicable Lenders (including
Uniform Commercial Code financing statements).

 

“Securities Laws”
means the Securities Act of 1933, the Securities Exchange Act of 1934,
Sarbanes-Oxley and the applicable accounting and auditing principles, rules,
standards and practices promulgated, approved or incorporated by the SEC or the
Public Company Accounting Oversight Board, as each of the foregoing may be
amended and in effect on any applicable date hereunder.

 

“Seller Subordinated Debt” means Indebtedness
of any of the Borrowers (other than the Senior Subordinated Debt) which has
been subordinated and made junior to the payment and performance in full in
cash of the Obligations, and evidenced as such by a subordination agreement
containing subordination provisions substantially in the form of Exhibit F
hereto (the

 

20

 

“Subordination Agreement”); provided that (a) at the time such Seller
Subordinated Debt is incurred, no Default or Event of Default has occurred or
would occur as a result of such incurrence, and (b) the documentation
evidencing such Seller Subordinated Debt shall have been delivered to the
Administrative Agent and shall contain all
of the following characteristics:  (i) it
shall be unsecured, (ii) it shall bear interest at a rate not to exceed the
market rate, (iii) it shall not require unscheduled principal repayments
thereof prior to the maturity date of such debt, (iv) if it has any covenants,
such covenants (including covenants relating to incurrence of indebtedness)
shall be meaningfully less restrictive than those set forth herein, (v) it
shall have no restrictions on the Borrower’s ability to grant liens securing
indebtedness ranking senior to such Seller Subordinated Debt, (vi) it shall
permit the incurrence of senior indebtedness under this Credit Agreement, (vii)
it may be cross-accelerated with the Obligations and other senior indebtedness
of the Borrowers (but shall not be cross-defaulted except for payment defaults
which the senior lenders have not waived) and may be accelerated upon
bankruptcy, (viii) it shall provide for the complete, automatic and
unconditional release of any and all guarantees of such Seller Subordinated
Debt granted by any Borrower in the event of the sale by any Person of such
Borrower or the sale by any Person of all or substantially all of such Borrower’s
assets (including in the case of a foreclosure), (ix) it shall provide that (A)
upon any payment or distribution of the assets of the Borrowers (including
after the commencement of a bankruptcy proceeding) of any kind or character,
all of the Obligations (including interest accruing after the commencement of
any bankruptcy proceeding at the rate specified for the applicable Obligation,
whether or not such interest is an allowable claim in any such proceeding)
shall be paid in full in cash prior to any payment being received by the
holders of the Seller Subordinated Debt and (B) until all of the Obligations
(including the interest described in subclause (A) above) are paid in full in
cash, any payment or distribution to which the holders of the Seller
Subordinated Debt would be entitled but for the subordination provisions of the
type described in clauses (x) and (xi) hereof shall be made to the holders of
the Obligations, (x) it shall provide that in the event of a payment default
under Section 8.01(a) hereof, the Borrowers shall not be required to pay
the principal of, or any interest, fees and all other amounts payable with
respect to the Seller Subordinated Debt until the Obligations have been paid in
full in cash, (xi) it shall provide that in the event of any other Event of
Default, the Lenders shall be permitted to block with respect to the Seller
Subordinated Debt for a period of 180 days (A) payments of principal, interest,
fees and all other amounts payable, and (B) enforcement of remedies for Seller
Subordinated Debt in excess of $1,000,000, and (xii) it shall acknowledge that
none of the provisions outlined in part (b) of this definition can be amended,
modified or otherwise altered without the prior written consent of the Required
Lenders.

 

“Senior Subordinated Debt” means (a) the
existing senior subordinated Indebtedness of the Borrowers evidenced by the
Senior Subordinated Debt Documents in the aggregate principal amount of
$195,000,000, and (b) any other senior subordinated debt permitted under Section
7.03 hereof which shall be on market terms and otherwise reasonably
acceptable to the Required Lenders in all respects.

 

“Senior Subordinated Debt Documents” means
the Indenture, the Senior Subordinated Notes and all other documents,
instruments and agreements entered into or executed in connection therewith or
in connection with other Senior Subordinated Debt.

 

21

 

“Senior Subordinated Notes” means the 9.75%
Senior Subordinated Notes due 2013 issued by the Parent pursuant to the
Indenture.

 

“SPC” has the meaning specified in Section
10.06(h)

 

“Series A Certificate” means that certain
Certificate of Designation of Series A Convertible Preferred Stock, dated as of
August 8, 2000, which sets forth the rights and obligations of the Series A
Holders and the Parent with respect to the Series A Preferred Stock.

 

“Series A Holders” means the holders of the
Series A Preferred Stock listed on Schedule 5.13(b) hereto.

 

“Series A Preferred Stock”
means the Series A Preferred Stock issued by the Parent to the Series A Holders pursuant to the Series A Certificate in the liquidation
value of $53,750,000 plus dividends as provided for in the Series A
Certificate.

 

“Specified Entities”
means (a) K-C International, Ltd., (b) the brokerage business of KTI Recycling
of New England, Inc., (c) the brokerage business of Pine Tree Waste, Inc., (d)
Greenfiber, (e) KTI New Jersey Fibers, Inc., (f) Atlantic Coast Fibers, Inc.,
(g) Casella NH Investors Co., LLC, (h) Casella NH Power Co., LLC, (i) Data
Destruction Services, Inc., (j) Natural Environmental, Inc., (k) Blasdell
Development Group, Inc., (l) Casella Waste Management of Pennsylvania, Inc.,
(m) KTI Specialty Waste Services, Inc., (n) Pine Tree Waste, Inc., (o) Resource
Recovery of Cape Cod, Inc., (p) Rochester Environmental Park, LLC and (q) the
companies and assets comprising the FCR operating segment, or the successors of
any of the foregoing only with respect to the businesses conducted by the
foregoing on the Closing Date.

 

“Spot Rate” means,
with respect to any “first currency” (as defined in Section 2.15), at
any date of determination thereof, the spot rate of exchange in London that
appears on the display page applicable to such first currency on the Reuters
System (or such other page as may replace such page on such service for the
purpose of displaying the spot rate of exchange in London) for the conversion
of such first currency into the “second currency” (as defined in Section
2.15); provided, however, that if there shall at any time no
longer exist such a page on such service, the Spot Rate shall be determined by
reference to another similar rate publishing service selected by the
Administrative Agent.

 

“Subsidiary” of a
Person means a corporation, partnership, joint venture, limited liability
company or other business entity of which a majority of the shares of
securities or other interests having ordinary voting power for the election of
directors or other governing body (other than securities or interests having
such power only by reason of the happening of a contingency) are at the time
beneficially owned by such Person. 
Unless otherwise specified, all references herein to a “Subsidiary” or
to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Parent.

 

“Subordination Agreement”
has the meaning specified in the definition of “Seller Subordinated Debt”.

 

“Subordinated Debt”
means, collectively, the Senior Subordinated Debt and the Seller Subordinated
Debt.

 

22

 

“Swap Contract” means
(a) any and all rate swap transactions, basis swaps, credit derivative
transactions, forward rate transactions, commodity swaps, commodity options,
forward commodity contracts, equity or equity index swaps or options, bond or
bond price or bond index swaps or options or forward bond or forward bond price
or forward bond index transactions, interest rate options, forward foreign
exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions,
currency options, spot contracts, or any other similar transactions or any
combination of any of the foregoing (including any options to enter into any of
the foregoing), whether or not any such transaction is governed by or subject
to any master agreement, and (b) any and all transactions of any kind, and the
related confirmations, which are subject to the terms and conditions of, or
governed by, any form of master agreement published by the International Swaps
and Derivatives Association, Inc., any International Foreign Exchange Master
Agreement, or any other master agreement (any such master agreement, together
with any related schedules, a “Master Agreement”), including any such
obligations or liabilities under any Master Agreement.

 

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

 

“Swing Line” means
the revolving credit facility made available by the Swing Line Lender pursuant
to Section 2.04.

 

“Swing Line Borrowing”
means a borrowing of a Swing Line Loan pursuant to Section 2.04.

 

“Swing Line Lender”
means Bank of America in its capacity as provider of Swing Line Loans, or any
successor swing line lender hereunder.

 

“Swing Line Loan” has
the meaning specified in Section 2.04(a).

 

“Swing Line Loan Notice”
means a notice of a Swing Line Borrowing pursuant to Section 2.04(b),
which, if in writing, shall be substantially in the form of Exhibit B
hereto.

 

“Swing Line Sublimit”
means an amount equal to the lesser of (a) $10,000,000 and (b) the Aggregate
Commitments.  The Swing Line Sublimit is
part of, and not in addition to, the Aggregate Commitments.

 

“Synthetic Lease”
means any lease of goods or other property, whether real or personal, which is
treated as an operating lease under GAAP and as a loan or financing for U.S.
income tax purposes.

 

23

 

“Term B Lender” means
the Lenders holding a portion of the Term B Loan as shall be set forth in
amended Schedule A to the Conforming Amendment, together with any other Person
who becomes an assignee of any rights and obligations of a Term B Lender.

 

“Term B Loan” has the
meaning specified in Section 2.14 hereof.

 

“Term B Loan Borrowing”
means a borrowing consisting of any portions of the Term B Loan of the same
Type.

 

“Term B Loan Date”
has the meaning specified in Section 2.14 hereof.

 

“Term B Loan Notice”
means a notice of (a) a Term B Loan Borrowing, (b) a conversion of any portion
of the Term B Loan from one Type to the other, or (c) a continuation of
Eurodollar Rate Loans, pursuant to Section 2.02(a) (as made applicable
pursuant to Section 2.14), which, if in writing, shall be substantially
in the form of Exhibit A.

 

“Term B Loan Percentage”
has the meaning specified in the definition of Applicable Percentage.

 

“Threshold Amount”
means $5,000,000.

 

“Total Outstandings”
means the aggregate Outstanding Amount of all Loans and all L/C Obligations.

 

“Total Revolving Outstandings”
means the aggregate Outstanding Amount of Committed Loans, Swing Line Loans and
L/C Obligations.

 

“Type” means, with
respect to a Loan, its character as a Base Rate Loan or a Eurodollar Rate Loan.

 

“United States” and “U.S.”
mean the United States of America.

 

“Unreimbursed Amount”
has the meaning specified in Section 2.03(c)(i).

 

“U.S. Fiber” means
U.S. Fiber, Inc., a North Carolina corporation.

 

1.02                        Other Interpretive Provisions.  With reference to this
Agreement and each other Loan Document, unless otherwise specified herein or in
such other Loan Document:

 

(a)                                  The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes”
and “including” shall be deemed to be followed by the phrase “without
limitation.”  The word “will”
shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise, (i)
any definition of or reference to any agreement, instrument or other document
(including any Organization Document) shall be construed as referring to such
agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on

 

24

 

such amendments, supplements
or modifications set forth herein or in any other Loan Document), (ii) any
reference herein to any Person shall be construed to include such Person’s
permitted successors and permitted assigns, (iii) the words “herein,” “hereof”
and “hereunder,” and words of similar import when used in any Loan
Document, shall be construed to refer to such Loan Document in its entirety and
not to any particular provision thereof, (iv) all references in a Loan Document
to Articles, Sections, Exhibits and Schedules shall be construed to refer to
Articles and Sections of, and Exhibits and Schedules to, the Loan Document in
which such references appear, (v) any reference to any law shall include all
statutory and regulatory provisions consolidating, amending, replacing or
interpreting such law and any reference to any law or regulation shall, unless
otherwise specified, refer to such law or regulation as amended, modified or
supplemented from time to time, and (vi) the words “asset” and “property”
shall be construed to have the same meaning and effect and to refer to any and
all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

 

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

 

(c)                                  Section headings herein and in the other Loan
Documents are included for convenience of reference only and shall not affect
the interpretation of this Agreement or any other Loan Document.

 

1.03                        Accounting Terms.
  (a)  Generally.  All accounting terms not specifically or
completely defined herein shall be construed in conformity with, and all
financial data (including financial ratios and other financial calculations)
required to be submitted pursuant to this Agreement shall be prepared in
conformity with, GAAP applied on a consistent basis, as in effect from time to
time, applied in a manner consistent with that used in preparing the Audited
Financial Statements, except as otherwise specifically prescribed
herein.

 

(b)                                 Changes in GAAP.  If
at any time any change in GAAP would affect the computation of any financial
ratio or requirement set forth in any Loan Document, and either the Borrowers
or the Required Lenders shall so request, the Administrative Agent and the
Borrowers shall negotiate in good faith to amend such ratio or requirement to
preserve the original intent thereof in light of 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) the Borrowers
shall provide to the Administrative 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.

 

1.04                        Rounding.   Any financial ratios
required to be maintained by the Borrowers pursuant to this Agreement shall be
calculated by dividing the appropriate component by the other component,
carrying the result to one place more than the number of places by which such
ratio is expressed herein and rounding the result up or down to the nearest number
(with a rounding-up if there is no nearest number).

 

25

 

1.05                        Times of Day.   Unless otherwise specified, all references herein to times
of day shall be references to Eastern time (daylight or standard, as
applicable).

 

1.06                        Letter of Credit Amounts.   Unless otherwise specified
herein, the amount of a Letter of Credit at any time shall be deemed to be the
stated amount of such Letter of Credit in effect at such time; provided,
however, that with respect to any Letter of Credit that, by its terms or
the terms of any Issuer Document related thereto, provides for one or more
automatic increases in the stated amount thereof, the amount of such Letter of
Credit shall be deemed to be the maximum stated amount of such Letter of Credit
after giving effect to all such increases, whether or not such maximum stated
amount is in effect at such time.

 

ARTICLE II.                            

THE COMMITMENTS AND CREDIT
EXTENSIONS

 

2.01                        Committed Loans.   Subject to the terms and conditions set forth herein, each
Lender severally agrees to make revolving loans (each such loan, a “Committed
Loan”) to the Borrowers from time to time, on any Business Day during the
Availability Period, in an aggregate amount not to exceed at any time
outstanding the amount of such Lender’s Commitment; provided, however,
that after giving effect to any Committed Borrowing, (i) the Total Revolving
Outstandings shall not exceed the Aggregate Commitments, and (ii) the aggregate
Outstanding Amount of the Committed Loans of any Lender, plus such
Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations
plus such Lender’s Applicable Percentage of the Outstanding Amount of
all Swing Line Loans shall not exceed such Lender’s Commitment.  Within the limits of each Lender’s
Commitment, and subject to the other terms and conditions hereof, the Borrowers
may borrow under this Section 2.01, prepay under Section 2.05,
and reborrow under this Section 2.01. 
Committed Loans may be Base Rate Loans or Eurodollar Rate Loans, as
further provided herein.

 

2.02                        Borrowings, Conversions and Continuations of
Loans.

 

(a)                                  Each Committed Borrowing, each conversion of
Loans from one Type to the other, and each continuation of Eurodollar Rate
Loans shall be made upon the Borrowers’ irrevocable notice to the
Administrative Agent, which may be given by telephone.  Each such notice must be received by the
Administrative Agent not later than 11:00 a.m. (i) three Business Days prior to
the requested date of any Borrowing of, conversion to or continuation of
Eurodollar Rate Loans or of any conversion of Eurodollar Rate Loans to Base
Rate Loans, and (ii) on the requested date of any Borrowing of Base Rate
Loans.  Each telephonic notice by the
Borrowers pursuant to this Section 2.02(a) must be confirmed promptly by
delivery to the Administrative Agent of a written Loan Notice, appropriately
completed and signed by a Responsible Officer or other signatories of the
Borrowers approved by the Borrowers and the Administrative Agent.  Each Borrowing of, conversion to or
continuation of Eurodollar Rate Loans shall be in a principal amount of
$5,000,000 or a whole multiple of $1,000,000 in
excess thereof. Except as provided in Sections 2.03(c) and 2.04(c),
each Borrowing of or conversion to Base Rate Loans shall be in a principal
amount of $500,000 or a whole multiple of $100,000 in excess thereof.  Each Loan Notice (whether telephonic or
written) shall specify (i) whether the Borrowers are requesting a Committed Borrowing,
a conversion of Loans from one Type to the other, or a continuation of
Eurodollar Rate Loans, (ii) the requested date of the Borrowing,

 

26

 

conversion or continuation, as the case may
be (which shall be a Business Day), (iii) the principal amount of Loans to be
borrowed, converted or continued, (iv) the Type of Loans to be borrowed or to
which existing Loans are to be converted, and (v) if applicable, the duration
of the Interest Period with respect thereto. 
If the Borrowers fail to specify a Type of Loan in a Loan Notice or if
the Borrowers fail to give a timely notice requesting a conversion or
continuation, then the applicable Loans shall be made as, or converted to, Base
Rate Loans.  Any such automatic
conversion to Base Rate Loans shall be effective as of the last day of the
Interest Period then in effect with respect to the applicable Eurodollar Rate
Loans.  If the Borrowers request a
Borrowing of, conversion to, or continuation of Eurodollar Rate Loans in any
such Loan Notice, but fail to specify an Interest Period, it will be deemed to
have specified an Interest Period of one month.

 

(b)                                 Following receipt of a Loan Notice, the
Administrative Agent shall promptly notify each Lender of the amount of its
Applicable Percentage of the applicable Loans, and if no timely notice of a
conversion or continuation is provided by the Borrowers, the Administrative
Agent shall notify each Lender of the details of any automatic conversion to
Base Rate Loans described in the preceding subsection.  In the case of a Committed Borrowing, each
Lender shall make the amount of its Committed Loan available to the
Administrative Agent in immediately available funds at the Administrative Agent’s
Office not later than 1:00 p.m. on the Business Day specified in the applicable
Committed Loan Notice.  Upon satisfaction
of the applicable conditions set forth in Section 4.02 (and, if such
Borrowing is the initial Credit Extension, Section 4.01), the
Administrative Agent shall make all funds so received available to the
Borrowers in like funds as received by the Administrative Agent either by (i)
crediting the account of the Borrowers on the books of Bank of America with the
amount of such funds or (ii) wire transfer of such funds, in each case in
accordance with instructions provided to the Administrative Agent by the
Borrowers; provided, however, that if, on the date the Committed
Loan Notice with respect to such Borrowing is given by the Borrowers, there are
L/C Borrowings outstanding, then the proceeds of such Borrowing, first,
shall be applied to the payment in full of any such L/C Borrowings, and second,
shall be made available to the Borrowers as provided above.

 

(c)                                  Except as otherwise provided herein, a
Eurodollar Rate Loan may be continued or converted only on the last day of an
Interest Period for such Eurodollar Rate Loan. 
During the existence of a Default, no Loans may be requested as,
converted to or continued as Eurodollar Rate Loans without the consent of the
Required Lenders.

 

(d)                                 The Administrative Agent shall promptly
notify the Borrowers and the Lenders of the interest rate applicable to any
Interest Period for Eurodollar Rate Loans upon determination of such interest
rate.  At any time that Base Rate Loans
are outstanding, the Administrative Agent shall notify the Borrowers and the
Lenders of any change in Bank of America’s prime rate used in determining the
Base Rate promptly following the public announcement of such change.

 

(e)                                  After giving effect to all Borrowings, all
conversions of Loans from one Type to the other, and all continuations of Loans
as the same Type, there shall not be more than ten (10) Interest Periods in
effect with respect to Loans.

 

27

 

2.03                        Letters of Credit.

 

(a)                                  The
Letter of Credit Commitment.

 

(i)                                     Subject to the terms and conditions set forth
herein, (A) the L/C Issuer agrees, in reliance upon the agreements of the
Lenders set forth in this Section 2.03, (1) from time to time on any
Business Day during the period from the Closing Date until the Letter of Credit
Expiration Date, to issue Letters of Credit for the account of the Borrowers,
and to amend or extend Letters of Credit previously issued by it, in accordance
with subsection (b) below, and (2) to honor drawings under the Letters of
Credit; and (B) the Lenders severally agree to participate in Letters of Credit
issued for the account of the Borrowers and any drawings thereunder; provided
that after giving effect to any L/C Credit Extension with respect to any Letter
of Credit, (x) the Total Revolving Outstandings shall not exceed the Aggregate
Commitments, and (y) the aggregate Outstanding Amount of the Committed Loans of
any Lender, plus such Lender’s Applicable Percentage of the Outstanding
Amount of all L/C Obligations, plus such Lender’s Applicable Percentage
of the Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s
Commitment.  Each request by the
Borrowers for the issuance or amendment of a Letter of Credit shall be deemed
to be a representation by the Borrower that the L/C Credit Extension so
requested complies with the conditions set forth in the proviso to the
preceding sentence.  Within the foregoing
limits, and subject to the terms and conditions hereof, the Borrowers’ ability
to obtain Letters of Credit shall be fully revolving, and accordingly the
Borrowers may, during the foregoing period, obtain Letters of Credit to replace
Letters of Credit that have expired or that have been drawn upon and
reimbursed.   All Existing Letters of
Credit shall be deemed to have been issued pursuant hereto, and from and after
the Closing Date shall be subject to and governed by the terms and conditions
hereof.

 

(ii)                                  The L/C Issuer shall not issue any Letter of
Credit, if:

 

(A)                              subject to Section 2.03(b)(iii), the expiry
date of such requested Letter of Credit would occur more than twelve months
after the date of issuance or last extension, unless the Required Lenders have
approved such expiry date; or

 

(B)                                the expiry date of such requested Letter of
Credit would occur after the Letter of Credit Expiration Date, unless all the
Lenders have approved such expiry date.

 

(iii)                               The L/C Issuer shall not be under any
obligation to issue any Letter of Credit if:

 

(A)                              any order, judgment or decree of any
Governmental Authority or arbitrator shall by its terms purport to enjoin or
restrain the L/C Issuer from issuing such Letter of Credit, or any Law
applicable to the L/C Issuer or any request or directive (whether or not having
the force of law) from any Governmental Authority with jurisdiction over the
L/C Issuer shall prohibit, or request that the L/C Issuer refrain from, the
issuance of letters of credit generally

 

28

 

or such Letter of Credit in
particular or shall impose upon the L/C Issuer with respect to such Letter of
Credit any restriction, reserve or capital requirement (for which the L/C
Issuer is not otherwise compensated hereunder) not in effect on the Closing
Date, or shall impose upon the L/C Issuer any unreimbursed loss, cost or
expense which was not applicable on the Closing Date and which the L/C Issuer
in good faith deems material to it;

 

(B)                                the issuance of such Letter of Credit would
violate one or more policies of the L/C Issuer;

 

(C)                                such Letter of Credit is to be denominated in
a currency other than Dollars; or

 

(D)                               a default of any Lender’s obligations to fund
under Section 2.03(c) exists or any Lender is at such time a Defaulting
Lender hereunder, unless the L/C Issuer has entered into satisfactory
arrangements with the Borrowers or such Lender to eliminate the L/C Issuer’s
risk with respect to such Lender.

 

(iv)                              The L/C Issuer shall not amend any Letter of
Credit if the L/C Issuer would not be permitted at such time to issue such
Letter of Credit in its amended form under the terms hereof.

 

(v)                                 The L/C Issuer shall be under no obligation
to amend any Letter of Credit if (A) the L/C Issuer would have no obligation at
such time to issue such Letter of Credit in its amended form under the terms
hereof, or (B) the beneficiary of such Letter of Credit does not accept the
proposed amendment to such Letter of Credit.

 

(vi)                              The L/C Issuer shall act on behalf of the
Lenders with respect to any Letters of Credit issued by it and the documents
associated therewith, and the L/C Issuer shall have all of the benefits and
immunities (A) provided to the Administrative Agent in Article IX
with respect to any acts taken or omissions suffered by the L/C Issuer in
connection with Letters of Credit issued by it or proposed to be issued by it
and Issuer Documents pertaining to such Letters of Credit as fully as if the
term “Administrative Agent” as used in Article IX included the L/C
Issuer with respect to such acts or omissions, and (B) as additionally provided
herein with respect to the L/C Issuer.

 

(b)                                 Procedures for Issuance and Amendment of
Letters of Credit; Auto-Extension Letters of Credit.

 

(i)                                     Each Letter of Credit shall be issued or
amended, as the case may be, upon the request of the Borrowers delivered to the
L/C Issuer (with a copy to the Administrative Agent) in the form of a Letter of
Credit Application, appropriately completed and signed by a Responsible Officer
of the Borrowers.  Such Letter of Credit
Application must be received by the L/C Issuer and the Administrative Agent not
later than 11:00 a.m. at least two Business Days (or such later date and time
as the Administrative Agent and the L/C Issuer may agree in a particular
instance in their sole discretion) prior to the proposed issuance date or date
of amendment, as the case may be.  In the
case of a request for an initial issuance of a Letter of Credit, such Letter of
Credit 

 

29

 

Application shall specify in
form and detail satisfactory to the L/C Issuer: (A) the proposed issuance date
of the requested Letter of Credit (which shall be a Business Day); (B) the
amount thereof; (C) the expiry date thereof; (D) the name and address of the
beneficiary thereof; (E) the documents to be presented by such beneficiary in
case of any drawing thereunder; (F) the full text of any certificate to be
presented by such beneficiary in case of any drawing thereunder; and (G) such
other matters as the L/C Issuer may reasonably require.  In the case of a request for an amendment of
any outstanding Letter of Credit, such Letter of Credit Application shall
specify in form and detail satisfactory to the L/C Issuer (A) the Letter of
Credit to be amended; (B) the proposed date of amendment thereof (which shall
be a Business Day); (C) the nature of the proposed amendment; and (D) such
other matters as the L/C Issuer may reasonably require.  Additionally, the Borrowers shall furnish to
the L/C Issuer and the Administrative Agent such other documents and
information pertaining to such requested Letter of Credit issuance or
amendment, including any Issuer Documents, as the L/C Issuer or the
Administrative Agent may require.

 

(ii)                                  Promptly after receipt of any Letter of
Credit Application, the L/C Issuer will confirm with the Administrative Agent
(by telephone or in writing) that the Administrative Agent has received a copy
of such Letter of Credit Application from the Borrowers and, if not, the L/C
Issuer will provide the Administrative Agent with a copy thereof.  Unless the L/C Issuer has received written
notice from any Lender, the Administrative Agent or any Borrower, at least one
Business Day prior to the requested date of issuance or amendment of the
applicable Letter of Credit, that one or more applicable conditions contained
in Article IV shall not then be satisfied, then, subject to the terms
and conditions hereof, the L/C Issuer shall, on the requested date, issue a
Letter of Credit for the account of the applicable Borrower or enter into the
applicable amendment, as the case may be, in each case in accordance with the
L/C Issuer’s usual and customary business practices.  Immediately upon the issuance of each Letter
of Credit, each Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the L/C Issuer a risk participation in
such Letter of Credit in an amount equal to the product of such Lender’s
Applicable Percentage times the amount of such Letter of Credit.

 

(iii)                               If the Borrowers so request in any applicable
Letter of Credit Application, the L/C Issuer may agree to issue a Letter of
Credit that has automatic extension provisions (each, an “Auto-Extension
Letter of Credit”); provided that any such Auto-Extension Letter of
Credit must permit the L/C Issuer to prevent any such extension at least once
in each twelve-month period (commencing with the date of issuance of such
Letter of Credit) by giving prior notice to the beneficiary thereof not later
than a day (the “Non-Extension Notice Date”) in each such twelve-month
period to be agreed upon at the time such Letter of Credit is issued.  Unless otherwise directed by the L/C Issuer,
the Borrowers shall not be required to make a specific request to the L/C Issuer
for any such extension.  Once an Auto-Extension
Letter of Credit has been issued, the Lenders shall be deemed to have
authorized (but may not require) the L/C Issuer to permit the extension of such
Letter of Credit at any time to an expiry date not later than the Letter of
Credit Expiration Date; provided, however, that the L/C Issuer
shall not permit any such extension if (A) the L/C Issuer has determined that
it would not be permitted, or would

 

30

 

have no obligation, at such
time to issue such Letter of Credit in its revised form (as extended) under the
terms hereof (by reason of the provisions of clause (ii) or (iii) of Section
2.03(a) or otherwise), or (B) it has received notice (which may be by
telephone or in writing) on or before the day that is five Business Days before
the Non-Extension Notice Date (1) from the Administrative Agent that the
Required Lenders have elected not to permit such extension or (2) from the
Administrative Agent, any Lender or the Borrowers that one or more of the
applicable conditions specified in Section 4.02 is not then satisfied,
and in each such case directing the L/C Issuer not to permit such extension.

 

(iv)                              If the Borrowers so request in any applicable
Letter of Credit Application, the L/C Issuer may, in its sole and absolute
discretion, agree to issue a Letter of Credit that permits the automatic
reinstatement of all or a portion of the stated amount thereof after any
drawing thereunder (each, an “Auto-Reinstatement Letter of Credit”).  Unless otherwise directed by the L/C Issuer,
the Borrowers shall not be required to make a specific request to the L/C
Issuer to permit such reinstatement. 
Once an Auto-Reinstatement Letter of Credit has been issued, except as
provided in the following sentence, the Lenders shall be deemed to have
authorized (but may not require) the L/C Issuer to reinstate all or a portion
of the stated amount thereof in accordance with the provisions of such Letter
of Credit.  Notwithstanding the foregoing,
if such Auto-Reinstatement Letter of Credit permits the L/C Issuer to decline
to reinstate all or any portion of the stated amount thereof after a drawing
thereunder by giving notice of such non-reinstatement within a specified number
of days after such drawing (the “Non-Reinstatement Deadline”), the L/C
Issuer shall not permit such reinstatement if it has received a notice (which
may be by telephone or in writing) on or before the day that is five Business
Days before the Non-Reinstatement Deadline (A) from the Administrative Agent
that the Required Lenders have elected not to permit such reinstatement or (B)
from the Administrative Agent, any Lender or the Borrower that one or more of
the applicable conditions specified in Section 4.02 is not then
satisfied (treating such reinstatement as an L/C Credit Extension for purposes
of this clause) and, in each case, directing the L/C Issuer not to permit such
reinstatement.

 

(v)                                 Promptly after its delivery of any Letter of
Credit or any amendment to a Letter of Credit to an advising bank with respect
thereto or to the beneficiary thereof, the L/C Issuer will also deliver to the
Borrower and the Administrative Agent a true and complete copy of such Letter
of Credit or amendment.

 

(c)                                  Drawings
and Reimbursements; Funding of Participations.

 

(i)                                     Upon receipt from the beneficiary of any
Letter of Credit of any notice of a drawing under such Letter of Credit, the
L/C Issuer shall notify the Borrowers and the Administrative Agent
thereof.  Not later than 11:00 a.m. on
the date of any payment by the L/C Issuer under a Letter of Credit, or within 2
hours after notice, if such notice occurs after 11:00 a.m. (each such date, an “Honor
Date”), the Borrowers shall reimburse the L/C Issuer through the
Administrative Agent in an amount equal to the amount of such drawing.  If the Borrowers fail to so reimburse the L/C
Issuer by such time, the Administrative Agent shall promptly notify each Lender
of the Honor Date, the amount of the unreimbursed drawing (the “Unreimbursed
Amount”), and the amount of such

 

31

 

Lender’s Applicable
Percentage thereof.  In such event, the
Borrowers shall be deemed to have requested a Committed Borrowing of Base Rate
Loans to be disbursed on the Honor Date in an amount equal to the Unreimbursed
Amount, without regard to the minimum and multiples specified in Section
2.02 for the principal amount of Base Rate Loans, but subject to the amount
of the unutilized portion of the Aggregate Commitments and the conditions set
forth in Section 4.02 (other than the delivery of a Committed Loan
Notice).  Any notice given by the L/C
Issuer or the Administrative Agent pursuant to this Section 2.03(c)(i)
may be given by telephone if immediately confirmed in writing; provided
that the lack of such an immediate confirmation shall not affect the
conclusiveness or binding effect of such notice.

 

(ii)                                  Each Lender shall upon any notice pursuant to
Section 2.03(c)(i) make funds available to the Administrative Agent for
the account of the L/C Issuer at the Administrative Agent’s Office in an amount
equal to its Applicable Percentage of the Unreimbursed Amount not later than
1:00 p.m. on the Business Day specified in such notice by the Administrative
Agent, whereupon, subject to the provisions of Section 2.03(c)(iii),
each Lender that so makes funds available shall be deemed to have made a Base
Rate Committed Loan to the Borrowers in such amount.  The Administrative Agent shall remit the
funds so received to the L/C Issuer.

 

(iii)                               With respect to any Unreimbursed Amount that
is not fully refinanced by a Committed Borrowing of Base Rate Loans because the
conditions set forth in Section 4.02 cannot be satisfied or for any
other reason, the Borrowers shall be deemed to have incurred from the L/C
Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is not so
refinanced, which L/C Borrowing shall be due and payable on demand (together
with interest) and shall bear interest at the Default Rate.  In such event, each Lender’s payment to the
Administrative Agent for the account of the L/C Issuer pursuant to Section
2.03(c)(ii) shall be deemed payment in respect of its participation in such
L/C Borrowing and shall constitute an L/C Advance from such Lender in
satisfaction of its participation obligation under this Section 2.03.

 

(iv)                              Until each Lender funds its Committed Loan or
L/C Advance pursuant to this Section 2.03(c) to reimburse the L/C Issuer
for any amount drawn under any Letter of Credit, interest in respect of such
Lender’s Applicable Percentage of such amount shall be solely for the account
of the L/C Issuer.

 

(v)                                 Each Lender’s obligation to make Committed
Loans or L/C Advances to reimburse the L/C Issuer for amounts drawn under
Letters of Credit, as contemplated by this Section 2.03(c), shall be
absolute and unconditional and shall not be affected by any circumstance,
including (A) any setoff, counterclaim, recoupment, defense or other right
which such Lender may have against the L/C Issuer, the Borrowers or any other
Person for any reason whatsoever; (B) the occurrence or continuance of a
Default, or (C) any other occurrence, event or condition, whether or not
similar to any of the foregoing; provided, however, that each
Lender’s obligation to make Committed Loans pursuant to this Section 2.03(c)
is subject to the conditions set forth in Section 4.02 (other than
delivery by the Borrowers of a Committed Loan Notice).  No such making of an L/C Advance shall
relieve or otherwise impair the obligation of the Borrowers to reimburse

 

32

 

the L/C Issuer for the
amount of any payment made by the L/C Issuer under any Letter of Credit,
together with interest as provided herein.

 

(vi)                              If any Lender fails to make available to the
Administrative Agent for the account of the L/C Issuer any amount required to
be paid by such Lender pursuant to the foregoing provisions of this Section
2.03(c) by the time specified in Section 2.03(c)(ii), the L/C Issuer
shall be entitled to recover from such Lender (acting through the Administrative
Agent), on demand, such amount with interest thereon for the period from the
date such payment is required to the date on which such payment is immediately
available to the L/C Issuer at a rate per annum equal to the greater of the
Federal Funds Rate and a rate determined by the L/C Issuer in accordance with
banking industry rules on interbank compensation.  A certificate of the L/C Issuer submitted to
any Lender (through the Administrative Agent) with respect to any amounts owing
under this clause (vi) shall be conclusive absent manifest error.

 

(d)                                 Repayment of Participations.

 

(i)                                     At any time after the L/C Issuer has made a
payment under any Letter of Credit and has received from any Lender such Lender’s
L/C Advance in respect of such payment in accordance with Section 2.03(c),
if the Administrative Agent receives for the account of the L/C Issuer any
payment in respect of the related Unreimbursed Amount or interest thereon
(whether directly from the Borrowers or otherwise, including proceeds of Cash
Collateral applied thereto by the Administrative Agent), the Administrative
Agent will distribute to such Lender its Applicable Percentage thereof
(appropriately adjusted, in the case of interest payments, to reflect the
period of time during which such Lender’s L/C Advance was outstanding) in the
same funds as those received by the Administrative Agent.

 

(ii)                                  If any payment received by the Administrative
Agent for the account of the L/C Issuer pursuant to Section 2.03(c)(i)
is required to be returned under any of the circumstances described in Section
10.05 (including pursuant to any settlement entered into by the L/C Issuer
in its discretion), each Lender shall pay to the Administrative Agent for the
account of the L/C Issuer its Applicable Percentage thereof on demand of the
Administrative Agent, plus interest thereon from the date of such demand to the
date such amount is returned by such Lender, at a rate per annum equal to the
Federal Funds Rate from time to time in effect. 
The obligations of the Lenders under this clause shall survive the
payment in full of the Obligations and the termination of this Agreement.

 

(e)                                  Obligations Absolute.  The obligation of the Borrowers to
reimburse the L/C Issuer for each drawing under each Letter of Credit and to repay
each L/C Borrowing shall be absolute, unconditional and irrevocable, and shall
be paid strictly in accordance with the terms of this Agreement under all
circumstances, including, without limitation, the following:

 

(i)                                     any lack of validity or enforceability of
such Letter of Credit, this Agreement, or any other Loan Document;

 

33

 

(ii)                                  the existence of any claim, counterclaim,
setoff, defense or other right that the Borrowers or any Subsidiary may have at
any time against any beneficiary or any transferee of such Letter of Credit (or
any Person for whom any such beneficiary or any such transferee may be acting),
the L/C Issuer or any other Person, whether in connection with this Agreement,
the transactions contemplated hereby or by such Letter of Credit or any
agreement or instrument relating thereto, or any unrelated transaction;

 

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

 

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

 

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

 

The Borrowers shall promptly
examine a copy of each Letter of Credit and each amendment thereto that is
delivered to it and, in the event of any claim of noncompliance with the
Borrowers’ instructions or other irregularity, the Borrowers will immediately
notify the L/C Issuer.  The Borrowers
shall be conclusively deemed to have waived any such claim against the L/C
Issuer and its correspondents unless such notice is given as aforesaid.

 

(f)                                    Role of L/C Issuer.  Each Lender and each of the
Borrowers agree that, in paying any drawing under a Letter of Credit, the L/C
Issuer shall not have any responsibility to obtain any document (other than any
sight draft, certificates and documents expressly required by the Letter of Credit)
or to ascertain or inquire as to the validity or accuracy of any such document
or the authority of the Person executing or delivering any such document.  None of the L/C Issuer, the Administrative
Agent, any of their respective Related Parties nor any correspondent,
participant or assignee of the L/C Issuer shall be liable to any Lender for (i)
any action taken or omitted in connection herewith at the request or with the
approval of the Lenders or the Required Lenders, as applicable; (ii) any action
taken or omitted in the absence of gross negligence or willful misconduct; or
(iii) the due execution, effectiveness, validity or enforceability of any
document or instrument related to any Letter of Credit or Issuer Document.  The Borrowers hereby assume all risks of the
acts or omissions of any beneficiary or transferee with respect to its use of
any Letter of Credit; provided, however, that this assumption is
not intended to, and shall not, preclude the Borrowers’ pursuing such rights
and remedies as they may have against the beneficiary or transferee at law or
under any other agreement.  None of the
L/C Issuer, the Administrative Agent, any of their respective Related Parties
nor any correspondent, participant

 

34

 

or assignee of the L/C Issuer shall be liable
or responsible for any of the matters described in clauses (i) through (v) of Section
2.03(e); provided, however, that anything in such clauses to
the contrary notwithstanding, the Borrowers may have a claim against the L/C
Issuer, and the L/C Issuer may be liable to the Borrowers, to the extent, but
only to the extent, of any direct, as opposed to consequential or exemplary,
damages suffered by the Borrowers which the Borrowers proves were caused by the
L/C Issuer’s willful misconduct or gross negligence or the L/C Issuer’s willful
failure to pay under any Letter of Credit after the presentation to it by the
beneficiary of a sight draft and certificate(s) strictly complying with the
terms and conditions of a Letter of Credit.  In furtherance and not in limitation of the
foregoing, the L/C Issuer may accept documents that appear on their face to be
in order, without responsibility for further investigation, regardless of any
notice or information to the contrary, and the L/C Issuer shall not be
responsible for the validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign a Letter of Credit or the rights
or benefits thereunder or proceeds thereof, in whole or in part, which may
prove to be invalid or ineffective for any reason.

 

(g)                                 Cash Collateral.  Upon
the request of the Administrative Agent, (i) if the L/C Issuer has honored any
full or partial drawing request under any Letter of Credit and such drawing has
resulted in an L/C Borrowing, or (ii) if, as of the Letter of Credit Expiration
Date, any L/C Obligation for any reason remains outstanding, the Borrowers
shall, in each case, immediately Cash Collateralize the then Outstanding Amount
of all L/C Obligations.  Sections 2.05
and 8.02(c) set forth certain additional requirements to deliver Cash
Collateral hereunder.  For purposes of
this Section 2.03, Section 2.05 and
Section 8.02(c), “Cash Collateralize” means to pledge and deposit
with or deliver to the Administrative Agent, for the benefit of the L/C Issuer
and the Lenders, as collateral for the L/C Obligations, cash or deposit account
balances pursuant to the Security Documents.

 

(h)                                 Applicability of ISP. Unless
otherwise expressly agreed by the L/C Issuer and the Borrowers when a Letter of
Credit is issued (including any such agreement applicable to an Existing Letter
of Credit), the rules of the ISP shall apply to each Letter of Credit.

 

(i)                                     Letter of Credit Fees.

 

(i)                                     The Borrowers jointly and severally in the
case of Letters of Credit which are Financial L/Cs agree to pay, at the times
specified in Section 2.03(i)(iii) below, a fee (a “Financial L/C Fee”) to the Administrative Agent for the
benefit of the Revolving Lenders, equal to the product of (A) the Letter of
Credit Percentage multiplied by (B) the
Maximum Drawing Amount of each Financial L/C on the date of calculation, to be
shared pro rata by each of such Lenders in accordance with their
respective Commitment Percentages.

 

(ii)                                  The Borrowers jointly and severally in the
case of Performance L/Cs agree to pay, at the times specified in Section
2.03(i)(iii) below, a fee (a “Performance L/C Fee”) to the Administrative Agent for the benefit of the Revolving
Lenders, equal to fifty percent (50%) of the product of (A) the Letter of
Credit Percentage multiplied by (B) the Maximum Drawing Amount of each such
Letter of Credit on the date of calculation, to be shared pro rata
by each of such Lenders in accordance with their respective Commitment
Percentages.

 

35

 

(iii)                               The Financial L/C Fee and Performance L/C Fee
(collectively, the “Letter of Credit Fees”) and the Fronting Fee (as
defined below) shall be payable quarterly in arrears on the tenth Business Day
after the end of each calendar quarter for the immediately preceding calendar
quarter and on the Maturity Date with respect to the daily Maximum Drawing
Amount of Letters of Credit outstanding during such calendar quarter or portion
thereof.  In addition, the Borrowers
jointly and severally agree to pay a fronting fee to the L/C Issuer for its
account in an amount equal to one eighth of one percent (0.125%) per annum of
the Maximum Drawing Amount of each Letter of Credit issued by the L/C Issuer
(the “Fronting Fee”), plus any customary issuance, amendment, negotiation or
document examination, and other standard costs, charges and administrative fees
of the L/C Issuer in effect from time to time. 
Notwithstanding anything to the contrary contained herein, upon the request
of the Required Lenders, while any Event of Default exists, all Letter of
Credit Fees shall accrue at the Default Rate.

 

(j)                                     Conflict with Issuer Documents.  In
the event of any conflict between the terms hereof and the terms of any Issuer
Document, the terms hereof shall control.

 

2.04                        Swing Line Loans.

 

(a)                                  The Swing Line. 
Subject to the terms and conditions set forth herein, the Swing Line
Lender agrees, in reliance upon the agreements of the other Lenders set forth
in this Section 2.04, to make loans (each such loan, a “Swing Line
Loan”) to the Borrowers from time to time on any Business Day during the
Availability Period in an aggregate amount not to exceed at any time
outstanding the amount of the Swing Line Sublimit, notwithstanding the fact that
such Swing Line Loans, when aggregated with the Applicable Percentage of the
Outstanding Amount of Committed Loans and L/C Obligations of the Lender acting
as Swing Line Lender, may exceed the amount of such Lender’s Commitment; provided,
however, that after giving effect to any Swing Line Loan, (i) the Total
Revolving Outstandings shall not exceed the Aggregate Commitments, and (ii) the
aggregate Outstanding Amount of the Committed Loans of any Lender, plus
such Lender’s Applicable Percentage of the Outstanding Amount of all L/C
Obligations, plus such Lender’s Applicable Percentage of the Outstanding
Amount of all Swing Line Loans shall not exceed such Lender’s Commitment, and provided,
further, that the Borrowers shall not use the proceeds of any Swing Line
Loan to refinance any outstanding Swing Line Loan.  Within the foregoing limits, and subject to
the other terms and conditions hereof, the Borrowers may borrow under this Section
2.04, prepay under Section 2.05, and reborrow under this Section
2.04.  Each Swing Line Loan shall be
a Base Rate Loan.

 

(b)                                 Borrowing Procedures.  Each
Swing Line Borrowing shall be made upon the Borrowers’ irrevocable notice to
the Swing Line Lender and the Administrative Agent, which may be given by
telephone.  Each such notice must be
received by the Swing Line Lender and the Administrative Agent not later than
2:30 p.m. on the requested borrowing date, and shall specify (i) the amount to
be borrowed, which shall be a minimum of $100,000, and (ii) the requested
borrowing date, which shall be a Business Day. 
Each such telephonic notice must be confirmed promptly by delivery to
the Swing Line Lender and the Administrative Agent of a written Swing Line Loan
Notice, appropriately completed and signed by a Responsible Officer or other
signatories of the Borrowers approved by the Borrowers and the Administrative
Agent.

 

36

 

Promptly after receipt by the Swing Line
Lender of any telephonic Swing Line Loan Notice, the Swing Line Lender will
confirm with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has also received such Swing Line Loan Notice and, if not,
the Swing Line Lender will notify the Administrative Agent (by telephone or in
writing) of the contents thereof.  Unless
the Swing Line Lender has received notice (by telephone or in writing) from the
Administrative Agent (including at the request of any Lender) prior to 2:30
p.m. on the date of the proposed Swing Line Borrowing (A) directing the Swing
Line Lender not to make such Swing Line Loan as a result of the limitations set
forth in the first proviso to the first sentence of Section 2.04(a), or
(B) that one or more of the applicable conditions specified in Article IV
is not then satisfied, then, subject to the terms and conditions hereof, the
Swing Line Lender will, not later than 3:00 p.m. on the borrowing date
specified in such Swing Line Loan Notice, make the amount of its Swing Line
Loan available to the Borrower.

 

(c)                                  Refinancing of Swing Line Loans.

 

(i)                                     The Swing Line Lender at any time in its sole
and absolute discretion may request, on behalf of the Borrowers (which hereby
irrevocably authorize the Swing Line Lender to so request on its behalf), that
each Lender make a Base Rate Committed Loan in an amount equal to such Lender’s
Applicable Percentage of the amount of Swing Line Loans then outstanding.  Such request shall be made in writing (which
written request shall be deemed to be a Committed Loan Notice for purposes
hereof) and in accordance with the requirements of Section 2.02, without
regard to the minimum and multiples specified therein for the principal amount
of Base Rate Loans, but subject to the unutilized portion of the Aggregate
Commitments and the conditions set forth in Section 4.02.  The Swing Line Lender shall furnish the
Borrowers with a copy of the applicable Committed Loan Notice promptly after
delivering such notice to the Administrative Agent.  Each Lender shall make an amount equal to its
Applicable Percentage of the amount specified in such Committed Loan Notice
available to the Administrative Agent in immediately available funds for the
account of the Swing Line Lender at the Administrative Agent’s Office not later
than 1:00 p.m. on the day specified in such Committed Loan Notice, whereupon,
subject to Section 2.04(c)(ii), each Lender that so makes funds
available shall be deemed to have made a Base Rate Committed Loan to the
Borrowers in such amount.  The
Administrative Agent shall remit the funds so received to the Swing Line
Lender.

 

(ii)                                  If for any reason any Swing Line Loan cannot
be refinanced by such a Committed Borrowing in accordance with Section
2.04(c)(i), the request for Base Rate Committed Loans submitted by the
Swing Line Lender as set forth herein shall be deemed to be a request by the
Swing Line Lender that each of the Lenders fund its risk participation in the
relevant Swing Line Loan and each Lender’s payment to the Administrative Agent
for the account of the Swing Line Lender pursuant to Section 2.04(c)(i)
shall be deemed payment in respect of such participation.

 

(iii)                               If any Lender fails to make available to the
Administrative Agent for the account of the Swing Line Lender any amount
required to be paid by such Lender pursuant to the foregoing provisions of this
Section 2.04(c) by the time specified in Section 2.04(c)(i), the
Swing Line Lender shall be entitled to recover from such Lender

 

37

 

(acting
through the Administrative Agent), on demand, such amount with interest thereon
for the period from the date such payment is required to the date on which such
payment is immediately available to the Swing Line Lender at a rate per annum
equal to the greater of the Federal Funds Rate and a rate determined by the
Swing Line Lender in accordance with banking industry rules on interbank
compensation.  A certificate of the Swing
Line Lender submitted to any Lender (through the Administrative Agent) with
respect to any amounts owing under this clause (iii) shall be conclusive absent
manifest error.

 

(iv)                              Each Lender’s obligation to make Committed
Loans or to purchase and fund risk participations in Swing Line Loans pursuant
to this Section 2.04(c) shall be absolute and unconditional and shall
not be affected by any circumstance, including (A) any setoff, counterclaim,
recoupment, defense or other right which such Lender may have against the Swing
Line Lender, the Borrowers or any other Person for any reason whatsoever, (B)
the occurrence or continuance of a Default, or (C) any other occurrence, event
or condition, whether or not similar to any of the foregoing; provided, however,
that each Lender’s obligation to make Committed Loans pursuant to this Section
2.04(c) is subject to the conditions set forth in Section 4.02.  No such funding of risk participations shall
relieve or otherwise impair the obligation of the Borrowers to repay Swing Line
Loans, together with interest as provided herein.

 

(d)                                 Repayment of Participations.

 

(i)                                     At any time after any Lender has purchased
and funded a risk participation in a Swing Line Loan, if the Swing Line Lender
receives any payment on account of such Swing Line Loan, the Swing Line Lender
will distribute to such Lender its Applicable Percentage of such payment
(appropriately adjusted, in the case of interest payments, to reflect the
period of time during which such Lender’s risk participation was funded) in the
same funds as those received by the Swing Line Lender.

 

(ii)                                  If any payment received by the Swing Line
Lender in respect of principal or interest on any Swing Line Loan is required
to be returned by the Swing Line Lender under any of the circumstances
described in Section 10.05 (including pursuant to any settlement entered
into by the Swing Line Lender in its discretion), each Lender shall pay to the
Swing Line Lender its Applicable Percentage thereof on demand of the
Administrative Agent, plus interest thereon from the date of such demand to the
date such amount is returned, at a rate per annum equal to the Federal Funds
Rate.  The Administrative Agent will make
such demand upon the request of the Swing Line Lender.  The obligations of the Lenders under this
clause shall survive the payment in full of the Obligations and the termination
of this Agreement.

 

(e)                                  Interest for Account of Swing Line Lender.  The
Swing Line Lender shall be responsible for invoicing the Borrowers for interest
on the Swing Line Loans.  Until each
Lender funds its Base Rate Committed Loan or risk participation pursuant to
this Section 2.04 to refinance such Lender’s Applicable Percentage of
any Swing Line Loan, interest in respect of such Applicable Percentage shall be
solely for the account of the Swing Line Lender.

 

38

 

(f)                                    Payments Directly to Swing Line Lender.  The
Borrowers shall make all payments of principal and interest in respect of the
Swing Line Loans directly to the Swing Line Lender.

 

2.05                        Prepayments.

 

(a)                                  The Borrowers may, upon notice to the
Administrative Agent, at any time or from time to time voluntarily prepay Loans
in whole or in part without premium or penalty; provided that (i) such
notice must be received by the Administrative Agent not later than 11:00 a.m.
(A) three Business Days prior to any date of prepayment of Eurodollar Rate
Loans and (B) on the date of prepayment of Base Rate Loans; and (ii) any
prepayment shall be in a principal amount of $250,000 or a whole multiple of
$250,000 in excess thereof or, if less, the entire principal amount thereof
then outstanding.  Each such notice shall
specify the date and amount of such prepayment and the Type(s) of Loans to be
prepaid and whether the Loan to be prepaid is a Committed Loan or Term B
Loan.  The Administrative Agent will
promptly notify each Lender of its receipt of each such notice, and of the
amount of such Lender’s Applicable Percentage of such prepayment.  If such notice is given by the Borrowers, the
Borrowers shall make such prepayment and the payment amount specified in such
notice shall be due and payable on the date specified therein.  Any prepayment of a Eurodollar Rate Loan
shall be accompanied by all accrued interest on the amount prepaid, together
with any additional amounts required pursuant to Section 3.05.  Each such prepayment shall be applied to the
Loans of the Lenders in accordance with their respective Applicable
Percentages.

 

(b)                                 The Borrowers may, upon notice to the Swing
Line Lender (with a copy to the Administrative Agent), at any time or from time
to time, voluntarily prepay Swing Line Loans in whole or in part without
premium or penalty; provided that (i) such notice must be received by
the Swing Line Lender and the Administrative Agent not later than 1:00 p.m. on
the date of the prepayment, and (ii) any such prepayment shall be in a minimum
principal amount of $100,000.  Each such
notice shall specify the date and amount of such prepayment.  If such notice is given by the Borrowers, the
Borrowers shall make such prepayment and the payment amount specified in such
notice shall be due and payable on the date specified therein.

 

(c)                                  If for any reason the Total Revolving
Outstandings at any time exceed the Aggregate Commitments then in effect, the
Borrowers shall immediately prepay the Committed Loans and/or Cash
Collateralize the L/C Obligations in an aggregate amount equal to such excess; provided,
however, that the Borrowers shall not be required to Cash Collateralize
the L/C Obligations pursuant to this Section 2.05(c) unless after the
prepayment in full of the Committed Loans the Outstanding Amount of L/C
Obligations exceed the Aggregate Commitments then in effect.

 

2.06                        Termination
or Reduction of Commitments.   The Borrower may, upon notice to the Administrative
Agent, terminate or reduce the Aggregate Commitments, or from time to time
permanently reduce the Aggregate Commitments; provided that (i) any such
notice shall be received by the Administrative Agent not later than 11:00 a.m.
five Business Days prior to the date of termination or reduction, (ii) any such
partial reduction shall be in an aggregate amount of $5,000,000 or any whole
multiple of $1,000,000 in excess thereof, (iii) the Borrowers shall not
terminate or reduce the Aggregate Commitments if, after giving effect thereto
and to any

 

39

 

concurrent prepayments hereunder, the Total Revolving Outstandings
would exceed the Aggregate Commitments, and (iv) if, after giving effect to any
reduction of the Aggregate Commitments, the Swing Line Sublimit exceeds the
amount of the Aggregate Commitments, such Sublimit shall be automatically
reduced by the amount of such excess. 
The Administrative Agent will promptly notify the Lenders of any such
notice of termination or reduction of the Aggregate Commitments.  Any reduction of the Aggregate Commitments shall
be applied to the Commitment of each Lender according to its Applicable
Percentage.  All fees accrued until the
effective date of any termination of the Aggregate Commitments shall be paid on
the effective date of such termination.

 

2.07                        Repayment of Loans.

 

(a)                                  The Borrower shall repay to the Lenders on
the Maturity Date the aggregate principal amount of Committed Loans outstanding
on such date.

 

(b)                                 The Borrower shall repay each Swing Line Loan
on the earlier to occur of (i) the date ten Business Days after such Loan is
made and (ii) the Maturity Date.

 

2.08                        Interest.

 

(a)                                  Subject to the provisions of subsection (b)
below, (i) each Eurodollar Rate Committed Loan shall bear interest on the
outstanding principal amount thereof for each Interest Period at a rate per
annum equal to the Eurodollar Rate for such Interest Period plus the
Applicable Rate; (ii) each Base Rate Committed Loan shall bear interest on the
outstanding principal amount thereof from the applicable borrowing date at a
rate per annum equal to the Base Rate plus the Applicable Rate; and
(iii) each Swing Line Loan shall bear interest on the outstanding principal
amount thereof from the applicable borrowing date at a rate per annum equal to
the Base Rate plus the Applicable Rate for Base Rate Committed Loans.

 

(b)                                 (i)                                     If any amount of principal of any Loan is not
paid when due (without regard to any applicable grace periods), whether at
stated maturity, by acceleration or otherwise, such amount shall thereafter
bear interest at a fluctuating interest rate per annum at all times equal to
the Default Rate to the fullest extent permitted by Applicable Laws.

 

(ii)                                  If any amount (other than principal of any
Loan) payable by the Borrowers under any Loan Document is not paid when due
(without regard to any applicable grace periods), whether at stated maturity,
by acceleration or otherwise, then upon the request of the Required Lenders,
such amount shall thereafter bear interest at a fluctuating interest rate per
annum at all times equal to the Default Rate to the fullest extent permitted by
Applicable Laws.

 

(iii)                               Accrued and unpaid interest on past due
amounts (including interest on past due interest) shall be due and payable upon
demand.

 

(c)                                  Interest on each Loan shall be due and
payable in arrears on each Interest Payment Date applicable thereto and at such
other times as may be specified herein. 
Interest hereunder shall be due and payable in accordance with the terms
hereof before and after

 

40

 

judgment, and before and after the
commencement of any proceeding under any Debtor Relief Law.

 

2.09                        Fees.   In addition to certain fees described in Section
2.03(i):

 

(a)                                  Commitment Fee.  The
Borrowers jointly and severally in accordance with Section 10.12 agree
(to the fullest extent permitted by law) to pay to the Administrative Agent for
the benefit of the Revolving Lenders in accordance with their respective
Applicable Percentages a commitment fee (the “Commitment
Fee”) calculated at the rate per annum equal to the Applicable Rate with
respect to the Commitment Fee as in effect from time to time on the daily
amount during each calendar quarter or portion thereof from the Closing Date to
the Maturity Date by which the Aggregate Commitments exceeds the sum of (i) the
Outstanding Amount of Committed Loans,  plus
(ii) the Outstanding Amount of L/C Obligations during such calendar
quarter.  The Commitment Fee shall be
payable quarterly in arrears on the last Business Day of each March, June,
September and December, with a final payment on the Maturity Date or any
earlier date on which the Commitments shall terminate.  If there is any change in the Applicable Rate
during any quarter, the actual daily amount shall be computed and multiplied by
the Applicable Rate separately for each period during such quarter that such
Applicable Rate was in effect.

 

(b)                                 Other Fees. The Borrowers jointly and severally in
accordance with Section 10.12 hereof shall pay to the Arranger and the
Administrative Agent for their own respective accounts fees in the amounts and
at the times specified in the Fee Letter. 
Such fees shall be fully earned when paid and shall not be refundable
for any reason whatsoever.

 

2.10                        Computation
of Interest and Fees.   All computations of interest for Base Rate Loans
when the Base Rate is determined by Bank of America’s “prime rate” shall be
made on the basis of a year of 365 or 366 days, as the case may be, and actual
days elapsed.  All other computations of
fees and interest shall be made on the basis of a 360-day year and actual days
elapsed (which results in more fees or interest, as applicable, being paid than
if computed on the basis of a 365-day year). 
Interest shall accrue on each Loan for the day on which the Loan is
made, and shall not accrue on a Loan, or any portion thereof, for the day on
which the Loan or such portion is paid, provided that any Loan that is
repaid on the same day on which it is made shall, subject to Section 2.12(a),
bear interest for one day.  Each
determination by the Administrative Agent of an interest rate or fee hereunder
shall be conclusive and binding for all purposes, absent manifest error.

 

2.11                        Evidence of Debt.

 

(a)                                  The Credit Extensions made by each Lender
shall be evidenced by one or more accounts or records maintained by such Lender
and by the Administrative Agent in the ordinary course of business.  The accounts or records maintained by the
Administrative Agent and each Lender shall be conclusive absent manifest error
of the amount of the Credit Extensions made by the Lenders to the Borrowers and
the interest and payments thereon.  Any
failure to so record or any error in doing so shall not, however, limit or
otherwise affect the obligation of the Borrowers hereunder to pay any amount
owing with respect to the Obligations. 
In the event of any conflict between the accounts and records maintained
by any Lender and the accounts and records of the

 

41

 

Administrative Agent in respect of such
matters, the accounts and records of the Administrative Agent shall control in
the absence of manifest error.  Upon the
request of any Lender made through the Administrative Agent, the Borrowers
shall execute and deliver to such Lender (through the Administrative Agent) a
Note, which shall evidence such Lender’s Loans in addition to such accounts or
records.  Each Lender may attach
schedules to its Note and endorse thereon the date, Type (if applicable),
amount and maturity of its Loans and payments with respect thereto.

 

(b)                                 In addition to the accounts and records
referred to in subsection (a), each Lender and the Administrative Agent shall
maintain in accordance with its usual practice accounts or records evidencing
the purchases and sales by such Lender of participations in Letters of Credit
and Swing Line Loans.  In the event of
any conflict between the accounts and records maintained by the Administrative
Agent and the accounts and records of any Lender in respect of such matters,
the accounts and records of the Administrative Agent shall control in the
absence of manifest error.

 

2.12                        Payments Generally; Administrative Agent’s
Clawback.

 

(a)                                  General.  All payments to be made by the
Borrowers shall be made without condition or deduction for any counterclaim,
defense, recoupment or setoff. Except as otherwise expressly provided herein,
all payments by the Borrowers hereunder shall be made to the Administrative
Agent, for the account of the respective Lenders to which such payment is owed,
at the Administrative Agent’s Office in Dollars and in immediately available
funds not later than 2:00 p.m. on the date specified herein.  The Administrative Agent will promptly
distribute to each Lender its Applicable Percentage (or other applicable share
as provided herein) of such payment in like funds as received by wire transfer
to such Lender’s Lending Office.  All
payments received by the Administrative Agent after 2:00 p.m. shall be deemed
received on the next succeeding Business Day and any applicable interest or fee
shall continue to accrue.  If any payment
to be made by the Borrowers shall come due on a day other than a Business Day,
payment shall be made on the next following Business Day, and such extension of
time shall be reflected in computing interest or fees, as the case may be.

 

(b)                                 (i)  Funding
by Lenders; Presumption by Administrative Agent.  Unless the Administrative Agent shall have
received notice from a Lender prior to the proposed date of any Committed
Borrowing of Eurodollar Rate Loans (or, in the case of any Committed Borrowing
of Base Rate Loans, prior to 12:00 noon on the date of such Committed
Borrowing) that such Lender will not make available to the Administrative Agent
such Lender’s share of such Committed Borrowing, the Administrative Agent may
assume that such Lender has made such share available on such date in
accordance with Section 2.02 (or, in the case of a Committed Borrowing
of Base Rate Loans, that such Lender has made such share available in
accordance with and at the time required by Section 2.02) and may, in
reliance upon such assumption, make available to the Borrowers a corresponding
amount.  In such event, if a Lender has
not in fact made its share of the applicable Committed Borrowing available to
the Administrative Agent, then the applicable Lender and the Borrowers
severally agree to pay to the Administrative Agent forthwith on demand, which,
in the case of the Borrower, shall be made no earlier than 3 Business Days
after the date of such Lender’s failure to fund, such corresponding amount in
immediately available funds with interest thereon, for each day from and
including the date such

 

42

 

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

 

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

 

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

 

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

 

(d)                                 Obligations of Lenders Several.  The
obligations of the Lenders hereunder to make Committed Loans, to fund
participations in Letters of Credit and Swing Line Loans and to make payments
pursuant to Section 10.04(c) are several and not joint.  The failure of any Lender to make any
Committed Loan, to fund any such participation or to make any payment under Section
10.04(c) on any date required hereunder shall not relieve any other Lender
of its corresponding obligation to do so on such date, and no Lender shall be
responsible for the failure of any other Lender to so make its Committed Loan,
to purchase its participation or to make its payment under Section 10.04(c).

 

43

 

(e)                                  Funding Source. 
Nothing herein shall be deemed to obligate any Lender to obtain the
funds for any Loan in any particular place or manner or to constitute a
representation by any Lender that it has obtained or will obtain the funds for
any Loan in any particular place or manner.

 

2.13                        Sharing
of Payments by Lenders.   If any Lender shall, by exercising any right of
setoff or counterclaim or otherwise, obtain payment in respect of any principal
of or interest on any of the Loans made by it, or the participations in L/C
Obligations or in Swing Line Loans held by it resulting in such Lender’s
receiving payment of a proportion of the aggregate amount of such Loans
(including any Loans advanced pursuant to Section 2.14) or participations
and accrued interest thereon greater than its pro  rata share of
the Total Outstandings as provided herein, then the Lender receiving such
greater proportion shall (a) notify the Administrative Agent of such fact, and
(b) purchase (for cash at face value) participations in the Loans and
subparticipations in L/C Obligations and Swing Line Loans of the other Lenders,
or make such other adjustments as shall be equitable, so that the benefit of
all such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective Loans
and other amounts owing them, provided that:

 

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

 

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

 

Each Borrower consents to the foregoing and agrees,
to the extent it may effectively do so under Applicable Law, that any Lender
acquiring a participation pursuant to the foregoing arrangements may exercise
against such Borrower rights of setoff and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of such
Borrower in the amount of such participation.

 

2.14                        Increase in Commitments; Term B Loan.

 

(a)                                  Request for Increase of Committed Loans; Term
B Loan.  Provided there exists no Default, upon notice
to the Administrative Agent (which shall promptly notify the Lenders as set
forth in this Section), and subject to the terms of this Section, the Borrowers
may from time to time, (i) request an increase in the Aggregate Commitments in
respect of Committed Loans by an amount not exceeding $100,000,000 less
any increases effected in connection with subparagraph (a)(ii) of this Section;
and (ii) request a term loan (the “Term B Loan”) in the maximum
principal amount of $100,000,000 less any increases effected pursuant to
subparagraph (a)(i) of this Section; provided that, after giving effect
to any such increase, the

 

44

 

Aggregate Commitments plus, if
applicable, the outstanding principal amount of the Term B Loan shall not
exceed in the aggregate $450,000,000 (minus any previously effected
reductions of the Commitment pursuant to Section 2.06).

 

(b)                                 Term B Loan Terms and Conditions. To the extent that a Term B Loan is
requested pursuant to the terms of this Agreement, such Term B Loan will, in
addition to compliance with other applicable terms of this Agreement, include
the following terms and conditions:

 

(i)                                     Amendment to Schedule A. 
Schedule A shall be amended in the Conforming Amendment referred to
below to set forth the amount of the Term B Loan and the respective Term B Loan
Percentages of each Term B Lender.

 

(ii)                                  Evidence of Indebtedness.

 

(A)                              Loan Accounts.  Each Term B Lender shall
maintain in accordance with its usual practice an account or accounts
evidencing indebtedness of the Borrowers to such Lender resulting from such
Lender’s Term B Loan Percentage of the Term B Loan of such Lender from time to
time, including the amounts of principal and interest payable and paid to such
Lender from time to time under this Agreement. 
The Administrative Agent shall maintain accounts in which it shall
record (i) the amount of the Term B Loan made hereunder and each Interest
Period applicable thereto, (ii) the amount of any principal or interest due and
payable or to become due and payable from the Borrowers to each Term B Lender
hereunder and (iii) both the amount of any sum received by the Administrative
Agent hereunder for the account of the Term B Lenders and each Term B Lender’s
share thereof (if any).  The entries made
in the accounts maintained by each Term B Lender pursuant to this Section
shall, to the extent permitted by Applicable Law, be prima facie evidence of the existence and amounts of the obligations
of the Borrowers therein recorded; provided, however, that the
failure of any Term B Lender or the Administrative Agent to maintain any such
accounts or Term B Note Record, or any error therein, shall not in any manner
affect the obligation of the Borrowers to repay (with applicable interest) the
Term B Loan made in accordance with the terms of this Agreement.  If requested by any Term B Lender, the
Borrowers shall execute a promissory note with respect to such Lender’s portion
of the Term B Loan.

 

(B)                                Scheduled Installment Payments of Principal
of Term B Loan.  The Borrowers jointly and severally promise
to pay to the Administrative Agent for the account of the Term B Lenders, in
accordance with their respective Term B Loan Percentages, the principal amount
of the Term B Loan in such amounts pursuant to the installment schedule to be
attached to the Conforming Amendment, provided that the final installment
payment shall be due and payable no earlier than the Maturity Date.

 

(iii)                               Mandatory Prepayments of Loans.  The
Term B Loan shall be subject to customary mandatory and optional prepayment
provisions as agreed upon by and among

 

45

 

the Borrowers,
the Term B Lenders and the Administrative Agent and set forth in the Conforming
Amendment.

 

(iv)                              Interest on Term Loan. 
Except as otherwise provided in Section 2.08 hereof, the Term B
Loan shall bear interest during each Interest Period relating to all or any
portion of the Term B Loan at a rate to be determined, based on prevailing
market rates for borrowers with similar credit profiles and ratings, and
otherwise acceptable to the Borrowers, the Administrative Agent and the Term B
Lenders, as set forth in the Conforming Amendment.  After the Term B Loan has been made, the
provisions of Section 2.02 hereof shall apply mutatis mutandis
with respect to all or any portion of the Term B Loan so that, to the extent
applicable, the Borrowers may have the same interest rate options with respect
to all or any portion of the Term B Loan as they would be entitled to with
respect to the Committed Loans, provided that the provisions of Article
III of this Agreement shall also apply to the Term B Loan.

 

(v)                                 Pari Passu Treatment of Term Loan.  The
Term B Loan (A) shall rank pari  passu in right of payment and of
security with all other Loans and (B) shall be governed by and subject to all
of the provisions, terms and conditions set forth in this Agreement and the
other Loan Documents in every respect as though such Term B Loan was an
original “Loan” referred to herein and will constitute an Obligation of the
Borrowers hereunder, including, without limitation, the provisions of Section
2.13 hereof.  To the extent
conforming changes to this Agreement must be made to effect the addition of a
Term B Loan made in accordance with this Section, such conforming amendment
(the “Conforming Amendment”) will not require the consent of any Lender
other than the Term B Lenders, as well as the consent of the Borrowers and the
Administrative Agent to be effective, but shall be subject to the satisfaction
of each of the conditions set forth in Article IV hereof; provided
that, upon execution of the Conforming Amendment, the Administrative Agent
shall distribute a copy thereof to all of the Lenders.

 

(c)                                  Lender Elections to Commitment Increase or
Fund Term B Loan.  The Administrative Agent will promptly notify
the Lenders following receipt of a request by the Borrowers of, as the case may
be, an increase in the Aggregate Commitments in respect of Committed Loans or
funding of the Term B Loan.  At the time
of making such request, the Borrowers (in consultation with the Administrative
Agent) shall specify the time period within which each Lender is requested to
respond (which shall not in any event be less than ten (10) Business Days from
the date of delivery of such notice to the Lenders).  Each Lender shall notify the Administrative
Agent within such time period whether or not it agrees, as the case may be, to
increase its Commitment or to fund a portion of the Term B Loan, and, if so,
(i) in the case of an increase in such Lender’s Commitment, whether by an
amount equal to, greater than, or less than its Revolving Percentage of such
requested increase, or (ii) in the case of the Term B Loan, the Term B Loan
Percentage of such Lender with respect to the requested Term B Loan.  Any Lender not responding within such time
period shall be deemed to have declined to increase its Commitment or to
participate in the Term B Loan, as the case may be.

 

46

 

(d)                                 Notification by Administrative Agent;
Acceding Lenders.  The Administrative Agent shall notify the
Borrowers and each Lender of the Lenders’ responses to each request made
hereunder.  To achieve the full amount of
a requested increase and subject to the approval of the Administrative Agent
(and the L/C Issuer only with respect to an increase in the Aggregate
Commitments), which approvals shall not be unreasonably withheld, the Borrowers
may also invite additional one or more commercial banks, other financial
institutions or other Persons (in each case, an “Acceding Lender”) to become party to this
Agreement as a Lender by entering into an Instrument of Accession in
substantially the form of Exhibit H hereto (an “Instrument of Accession”)
with the Borrowers and the Administrative Agent and assuming thereunder the rights
and obligations (as the case may be) of a Lender hereunder, including without
limitation, Commitments to make Committed Loans and participate in the risk
relating to Letters of Credit and/or of Term B Lender with respect to the
obligation to fund a portion of the Term B Loan subject to the terms of this
Section, and the Aggregate Commitments and (as the case may be) the Term B Loan
shall be funded (each such increase or funding, as the case may be, referred to
as a “Post-Closing Increase”) by the amount
of such Acceding Lender’s interest all in accordance with the provisions of
this Section. The Borrowers shall indemnify the Lenders and the Administrative
Agent for any cost or expense incurred as a consequence of the reallocation of
any Eurodollar Rate Loans to an Acceding Lender pursuant to the provisions of Section 3.05 hereof.

 

(e)                                  Closing Date and Allocations.  Upon
a request by the Borrower of an increase in the Aggregate Commitments or the
funding of the Term B Loan in accordance with this Section, the Administrative
Agent and the Borrowers shall determine, as applicable, the effective date of
any such increase (any such date, the “Increase Closing Date”) or the
effective date of funding of the Term B Loan (the “Term B Loan Date”)
and the final allocation, as the case may be, of any such increase or Term B
Loan.  The Administrative Agent shall
promptly notify the Borrowers and the Lenders and Acceding Lenders, if any, of
the final allocation of such increase or Term B Loan.  On the Term B Loan Date or any Increase
Closing Date, Schedule 2.01 hereto shall be deemed to be amended to
reflect, as the case may be, (x) the name, address, and, as the case may be,
the Commitment of the Lenders and/or the amount of the Term B Loan advanced or
to be advanced by each Term B Lender (and, if applicable, any Acceding Lender),
(y) the Aggregate Commitments (after giving effect to any Post-Closing
Increase) and the principal amount of the Term B Loan, and (z) the changes to
the respective Applicable Percentages of the Lenders.

 

(f)                                    Conditions to Effectiveness of Increase of
Committed Loans or Term B Loan.  As a condition precedent to such increase in
the Aggregate Commitments or funding of the Term B Loan, as the case may be,
the Borrowers shall deliver to the Administrative Agent a certificate dated as
of, as applicable, any Increase Closing Date or the Term B Loan Date signed by
a Responsible Officer of the Parent (i) certifying and attaching the
resolutions adopted by the Borrowers approving or consenting to such increase,
(ii) certifying that, before and after giving effect to such increase, (A) the
applicable conditions set forth in Section 4.02(a) and (b) will
be satisfied, and (B)(1)such increase or Term B Loan is permitted senior
Indebtedness under the existing Senior Subordinated Debt Documents, and (2) no
default under the existing Senior Subordinated Debt Documents has occurred and
is continuing or would result after giving effect to the transactions
contemplated by such Loans.  In addition,
the Borrowers shall prepay any Committed Loans outstanding on any Increase
Closing Date (and pay any additional amounts required under Article III
of this Agreement) to the extent necessary to keep the outstanding

 

47

 

Committed Loans ratable with any revised
Applicable Percentages in respect of Committed Loans arising from any
nonratable increase in the Commitments under this Section.

 

(g)                                 Conflicting Provisions.  This
Section shall supersede any provisions in Sections 2.13 or 10.01
to the contrary.

 

2.15                        Currency
of Account.   All of the Loans and Letters of Credit
hereunder shall be denominated and payable in Dollars.  If, for the purpose of obtaining judgment in
any court it is necessary to convert a sum due hereunder in one currency (the “first currency”) into any other currency (the “second currency”) the conversion shall be made
at the Spot Rate of exchange of the Administrative Agent (as conclusively
determined by the Administrative Agent absent manifest error) on the Business
Day preceding the day on which the final judgment is given.  If, however, on the Business Day following
receipt by the Administrative Agent in the second currency of any sum adjudged
to be due hereunder (or any proportion thereof) the Administrative Agent
purchases the first currency with the amount of the second currency so received
and the first currency so purchased falls short of the sum originally due
hereunder in the first currency (or the same proportion thereof) the Borrowers,
shall, as a separate obligation and notwithstanding any judgment, pay to the
Administrative Agent in the first currency an amount equal to such shortfall.

 

ARTICLE III.

TAXES, YIELD PROTECTION AND
ILLEGALITY

 

3.01                        Taxes.

 

(a)                                  No Offset, etc. 
Except as set forth below, all payments by the Borrowers hereunder and
under any of the other Loan Documents shall be made without setoff or
counterclaim and free and clear of and without deduction for any taxes, levies,
imposts, duties, charges, fees, deductions, withholdings, compulsory loans,
restrictions or conditions of any nature now or hereafter imposed or levied by
any jurisdiction or any political subdivision thereof or taxing or other
authority therein unless the Borrowers are compelled by law to make such
deduction or withholding.  Except as
otherwise provided in this Section, if any such obligation is imposed upon the
Borrowers with respect to any amount payable by them hereunder or under any of
the other Loan Documents, the Borrowers will pay to the Administrative Agent
for the account of, as the case may be, the applicable Lenders, L/C Issuer or
the Administrative Agent, on the date on which such amount is due and payable
hereunder or under such other Loan Document, such additional amount in Dollars
as shall be necessary to enable the applicable Lenders, L/C Issuer or the
Administrative Agent to receive the same net amount which such Lenders, L/C
Issuer or the Administrative Agent would have received on such due date had no
such obligation been imposed upon the Borrowers; provided, that
notwithstanding the foregoing, the Borrowers shall not be required to pay any
additional amounts to the Administrative Agent, any Lender or the L/C Issuer
for Excluded Taxes. The Borrowers will deliver promptly to the Lenders and the
L/C Issuer certificates or other valid vouchers for all taxes or other charges
deducted from or paid with respect to payments made by the Borrowers hereunder
or under such other Loan Document.

 

48

 

(b)                                 Non-U.S. Lenders.  Each Lender that is not a U.S. Person as
defined in Section 7701(a)(30) of the Code for federal income tax purposes (a “Non-U.S.
Lender”) agrees that, if and to the extent it is legally able to do so, it
shall, prior to the first date on which any payment is due to it hereunder,
deliver to the Borrowers and the Administrative Agent such certificates,
documents or other evidence, as and when required by the Code or Treasury
Regulations issued pursuant thereto, including, (a) in the case of a Non-U.S.
Lender that is a “bank” for purposes of Section 881(c)(3)(A) of the Code, two
(2) duly completed copies of Internal Revenue Service Form W-8BEN or W-8ECI or
successor applicable form, as the case may be, and any other certificate or
statement of exemption required by Treasury Regulations, establishing that,
with respect to payments of principal, interest or fees hereunder, such
Non-U.S. Lender is (i) not subject to United States federal withholding tax
under the Code because such payment is effectively connected with the conduct
by such Non-U.S. Lender of a trade or business in the United States or (ii)
totally exempt or partially exempt from United States federal withholding tax
under a provision of an applicable tax treaty and (b) in the case of a Non-U.S.
Lender that is not a “bank” for purposes of Section 881(c)(3)(A) of the Code, a
certificate in form and substance reasonably satisfactory to the Administrative
Agent and the Borrowers and to the effect that (i) such Non-U.S. Lender is not
a “bank” for purposes of Section 881(c)(3)(A) of the Code, is not subject to
regulatory or other legal requirements as a bank in any jurisdiction, and has
not been treated as a bank for purposes of any tax, securities law or other
filing or submission made to any Governmental Authority, any application made
to a rating agency or qualification for any exemption from any tax, securities
law or other legal requirements, (ii) is not a ten (10) percent
shareholder for purposes of Section 881(c)(3)(B) of the Code and (iii) is
not a controlled foreign corporation receiving interest from a related person
for purposes of Section 881(c)(3)(C) of the Code, together with a properly
completed Internal Revenue Service Form W-8 or W-9, as applicable (or successor
forms).  Each Lender agrees that it
shall, promptly upon a change of its lending office or the selection of any
additional lending office, to the extent the forms previously delivered by it
pursuant to this section are no longer effective, and promptly upon the
Borrowers’ or the Administrative Agent’s reasonable request after the
occurrence of any other event (including the passage of time) requiring the
delivery of a Form W-8BEN, Form W-8ECI, Form W-8 or W-9 in addition to or in
replacement of the forms previously delivered, deliver to the Borrowers and the
Administrative Agent, as applicable, if and to the extent it is properly
entitled to do so, a properly completed and executed Form W-8BEN, Form W-8ECI,
Form W-8 or W-9, as applicable (or any successor forms thereto).

 

(c)                                  The Borrowers shall not be required to pay
any additional amounts to any Non-U.S. Lender in respect of United States
federal withholding tax pursuant to Section 3.01(a) hereof to the extent
that (i) the obligation to withhold such amounts existed on the date such Non-U.S.
Lender became a party to this Agreement or, with respect to payments to a
different lending office designated by the Non-U.S. Lender as its applicable
lending office, the date such Non-U.S. Lender designated such new lending
office with respect to a Loan; or (ii) the obligation to pay such additional
amounts would not have arisen but for a failure by such Non-U.S. Lender to
comply with the provisions of paragraph (b) above.

 

(d)                                 In the event that the Borrowers are required
to make such deduction or withholding as a result of the fact that a Lender is
a Non-U.S. Lender, such Lender shall use its reasonable best efforts to
transfer its Loans to an affiliate that is a U.S. Lender if such transfer would
have no adverse effect on such Lender or the Loans.

 

49

 

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

 

3.02                        Illegality.   If any
Applicable Law has made it unlawful for any Lender or its applicable Lending
Office to make, maintain or fund Eurodollar Rate Loans, or to determine or
charge interest rates based upon the Eurodollar Rate, then, on notice thereof
by such Lender to the Borrowers through the Administrative Agent, any
obligation of such Lender to make or continue Eurodollar Rate Loans or to
convert Base Rate Loans to Eurodollar Rate Loans shall be suspended until such
Lender notifies the Administrative Agent and the Borrowers that the
circumstances giving rise to such determination no longer exist.  Upon receipt of such notice, the Borrowers
shall, upon demand from such Lender (with a copy to the Administrative Agent),
prepay or, if applicable, convert all Eurodollar Rate Loans of such Lender to
Base Rate Loans, either on the last day of the Interest Period therefor, if
such Lender may lawfully continue to maintain such Eurodollar Rate Loans to
such day, or immediately, if such Lender may not lawfully continue to maintain
such Eurodollar Rate Loans.  Upon any
such prepayment or conversion, the Borrowers shall also pay accrued interest on
the amount so prepaid or converted.

 

3.03                        Inability
to Determine Rates.   If the Required Lenders determine that for
any reason in connection with any request for a Eurodollar Rate Loan or a
conversion to or continuation thereof that (a) Dollar deposits are not
being offered to banks in the London interbank eurodollar market for the
applicable amount and Interest Period of such Eurodollar Rate Loan,
(b) adequate and reasonable means do not exist for determining the
Eurodollar Rate for any requested Interest Period with respect to a proposed
Eurodollar Rate Loan, or (c) the Eurodollar Rate for any requested Interest
Period with respect to a proposed Eurodollar Rate Loan does not adequately and
fairly reflect the cost to such Required Lenders of funding such Loan, the
Administrative Agent will promptly so notify the Borrowers and each Lender.  Thereafter, the obligation of the Lenders to
make or maintain Eurodollar Rate Loans shall be suspended until the
Administrative Agent (upon the instruction of the Required Lenders) revokes
such notice.  Upon receipt of such
notice, the Borrowers may revoke any pending request for a Borrowing of,
conversion to or continuation of Eurodollar Rate Loans or, failing that, will
be deemed to have converted such request into a request for a Committed
Borrowing of Base Rate Loans in the amount specified therein.

 

50

 

3.04                        Increased Costs.

 

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

 

(i)                                     impose, modify or deem applicable any
reserve, special deposit, compulsory loan, insurance charge or similar
requirement against assets of, deposits with or for the account of, or credit
extended or participated in by, any Lender (except any reserve requirement
contemplated by Section 3.04(e)) or the L/C Issuer;

 

(ii)                                  subject any Lender or the L/C Issuer to any
tax, levy, impost, duty, charge, fees, deduction or withholdings of any kind
whatsoever with respect to this Agreement, any Letter of Credit, any
participation in a Letter of Credit or any Eurodollar Rate Loan made by it, or
change the basis of taxation of payments to such Lender or the L/C Issuer in
respect thereof (except for taxes covered by section 3.01 and the
imposition of, or any change in the rate of, any Excluded Taxes of such Lender
or L/C Issuer); or

 

(iii)                               impose on any Lender or the L/C Issuer or the
London interbank market any other condition, cost or expense affecting this
Agreement or Eurodollar Rate Loans made by such Lender or any Letter of Credit
or participation therein;

 

and the result of any of the foregoing shall
be to increase the cost to such Lender of making or maintaining any Eurodollar
Rate Loan (or of maintaining its obligation to make any such Loan), or to
increase the cost to such Lender or the L/C Issuer of participating in, issuing
or maintaining any Letter of Credit (or of maintaining its obligation to
participate in or to issue any Letter of Credit), or to reduce the amount of
any sum received or receivable by such Lender or the L/C Issuer hereunder
(whether of principal, interest or any other amount) then, upon request of such
Lender or the L/C Issuer, the Borrowers shall pay to such Lender or the L/C
Issuer, as the case may be, such additional amount or amounts as will
compensate such Lender or the L/C Issuer, as the case may be, for such
additional costs incurred or reduction suffered.

 

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

 

(c)                                  Certificates for Reimbursement.  A
certificate of a Lender or the L/C Issuer setting forth the amount or amounts
necessary to compensate such Lender or the L/C Issuer or its

 

51

 

holding company, as the case may be, as
specified in subsection (a) or (b) of this Section and delivered to the
Borrowers shall be conclusive absent manifest error.  The Borrowers shall pay such Lender or the
L/C Issuer, as the case may be, the amount shown as due on any such certificate
within 30 days after receipt thereof.

 

(d)                                 Delay in Requests. 
Failure or delay on the part of any Lender or the L/C Issuer to demand
compensation pursuant to the foregoing provisions of this Section shall not
constitute a waiver of such Lender’s or the L/C Issuer’s right to demand such
compensation, provided that the Borrowers shall not be required to
compensate a Lender or the L/C Issuer pursuant to the foregoing provisions of
this Section for any increased costs incurred or reductions suffered more than
90 Days prior to the date that such Lender or the L/C Issuer, as the case may
be, notifies the Borrowers of the Change in Law giving rise to such increased
costs or reductions and of such Lender’s or the L/C Issuer’s intention to claim
compensation therefor (except that, if the Change in Law giving rise to such
increased costs or reductions is retroactive, then the 90-Day period referred
to above shall be extended to include the period of retroactive effect
thereof).

 

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

 

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

 

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

 

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

 

(c)                                  any assignment of a Eurodollar Rate Loan on a
day other than the last day of the Interest Period therefor as a result of a
request by the Borrowers pursuant to Section 10.14;

 

including any loss of
anticipated profits and any loss or expense arising from the liquidation or
reemployment of funds obtained by it to maintain such Loan or from fees payable
to terminate the deposits from which such funds were obtained.  The Borrowers shall also pay any customary
administrative fees charged by such Lender in connection with the foregoing.

 

52

 

For purposes of calculating
amounts payable by the Borrowers to the Lenders under this Section 3.05,
each Lender shall be deemed to have funded each Eurodollar Rate Loan made by it
at the Eurodollar Rate for such Loan by a matching deposit or other borrowing
in the London interbank eurodollar market for a comparable amount and for a
comparable period, whether or not such Eurodollar Rate Loan was in fact so
funded.

 

3.06                        Mitigation Obligations; Replacement of
Lenders.

 

(a)                                  Designation of a Different Lending Office.  If
any Lender requests compensation under Section 3.04, or the Borrowers
are required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, or if
any Lender gives a notice pursuant to Section 3.02, then such Lender
shall use reasonable efforts to designate a different Lending Office for
funding or booking its Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the
judgment of such Lender, such designation or assignment (i) would eliminate or
reduce amounts payable pursuant to Section 3.01 or 3.04, as the
case may be, in the future, or eliminate the need for the notice pursuant to Section
3.02, as applicable, and (ii) in each case, would not subject such Lender
to any unreimbursed cost or expense and would not otherwise be disadvantageous
to such Lender.  The Borrowers hereby
agree to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.

 

(b)                                 Replacement of Lenders.  If
any Lender requests compensation under Section 3.04 or is unable to lend
under Section 3.02, or if the Borrowers are required to pay any
additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 3.01, the Borrowers may replace such
Lender in accordance with Section 10.14.

 

3.07                        Survival.   All of the
Borrowers’ obligations under this Article III shall survive termination
of the Aggregate Commitments and repayment of all other Obligations hereunder.

 

ARTICLE IV.

CONDITIONS PRECEDENT TO
CREDIT EXTENSIONS

 

4.01                        Conditions
of Initial Credit Extension.  
The obligation of the L/C
Issuer and each Lender to make its initial Credit Extension hereunder is
subject to satisfaction of the following conditions precedent:

 

(a)                                  The Administrative Agent’s receipt of the
following, each of which shall be originals or telecopies (followed promptly by
originals) unless otherwise specified, each properly executed by a Responsible
Officer of the signing Borrowers, each dated the Closing Date (or, in the case
of certificates of governmental officials, a recent date before the Closing
Date) and each in form and substance satisfactory to the Administrative Agent
and each of the Lenders:

 

(i)                                     executed counterparts of this Agreement and
the Security Documents, sufficient in number for distribution to the
Administrative Agent, each Lender and the Borrower;

 

53

 

(ii)                                  such certificates of resolutions or other
action, incumbency certificates and/or other certificates of Responsible
Officers of each Borrower as the Administrative Agent may reasonably require
evidencing the identity, authority and capacity of each Responsible Officer
thereof authorized to act as a Responsible Officer in connection with this
Agreement, the Security Documents and the other Loan Documents to which such
Borrower is a party;

 

(iii)                               such documents and certifications as the
Administrative Agent may reasonably require to evidence that each Borrower is
duly organized or formed, and that each Borrower is validly existing, in good
standing and qualified to engage in business in each jurisdiction where its
ownership, lease or operation of properties or the conduct of its business
requires such qualification, except to the extent that failure to do so could
not reasonably be expected to have a Material Adverse Effect;

 

(iv)                              a favorable opinion of Wilmer, Cutler,
Pickering, Hale and Dorr, LLP, and other counsel or special counsel to the
Borrowers, as applicable, addressed to the Administrative Agent and each
Lender, in form and substance satisfactory to the Administrative Agent;

 

(v)                                 a certificate of a Responsible Officer of
each Borrower either (A) attaching copies of all consents, licenses and
approvals required in connection with the execution, delivery and performance
by such Borrower and the validity against such Borrower of the Loan Documents
to which it is a party, and such consents, licenses and approvals shall be in
full force and effect, or (B) stating that no such consents, licenses or
approvals are so required;

 

(vi)                              a certificate signed by a Responsible Officer
of the Borrowers certifying (A) that the conditions specified in Sections
4.02(a) and (b) have been satisfied, and (B) that there has been no
event or circumstance since the date of the Audited Financial Statements that
has had or would be reasonably expected to have, either individually or in the
aggregate, a Material Adverse Effect;

 

(vii)                           a certificate signed by a Responsible Officer
of the Borrowers, dated as of the Closing Date, and in form and detail
satisfactory to the Administrative Agent and the Lenders, demonstrating that
the ratio of (a) Consolidated Total Funded Debt on the Closing Date to (b)
Consolidated EBITDA for the period of four (4) consecutive fiscal quarters most
recently ended prior to the Closing Date, after giving effect on a pro forma
basis to the transactions contemplated by this Agreement, does not exceed
3.75:1.00;

 

(viii)                        evidence that all insurance required to be
maintained pursuant to the Loan Documents has been obtained and is in effect;

 

(ix)                                satisfactory evidence of the payment of
Indebtedness under the Existing Credit Agreement in accordance with Section
10.17 herein;

 

(x)                                   such other assurances, certificates,
documents, consents or opinions as the Administrative Agent, the L/C Issuer,
the Swing Line Lender or the Required Lenders reasonably may require;

 

54

 

(xi)                                a completed and fully-executed Perfection
Certificate in substantially the form attached hereto as Exhibit J for
each of the Borrowers, the results of UCC searches (and the equivalent thereof
in all applicable foreign jurisdictions) with respect to the Collateral,
indicating no Liens other than Permitted Liens and otherwise in form and
substance satisfactory to the Administrative Agent; and copies of duly filed
UCC-1 forms for each of the Borrowers in each appropriate jurisdiction and
office under the Uniform Commercial Code; and

 

(xii)                             a certificate signed by a Responsible Officer,
in form and substance reasonably satisfactory to the Administrative Agent,
certifying that (a) the Obligations are permitted senior Indebtedness under the
existing Senior Subordinated Debt Documents, and (b) no default under the
existing Senior Subordinated Debt Documents has occurred and is continuing or
would result after giving effect to the transactions contemplated by this
Agreement and the other Loan Documents.

 

(b)                                 Any fees required to be paid on or before the
Closing Date shall have been paid.

 

(c)                                  the Borrower shall have paid all fees,
charges and disbursements of counsel to the Administrative Agent to the extent
invoiced prior to or on the Closing Date.

 

Without limiting the
generality of the provisions of Section 9.04, for purposes of determining
compliance with the conditions specified in this Section 4.01, each
Lender that has signed this Agreement shall be deemed to have consented to,
approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its
objection thereto.

 

4.02                        Conditions
to all Credit Extensions.  
The obligation of each
Lender to honor any Request for a Credit Extension (other than a Loan Notice
requesting only a conversion of Loans to the other Type, or a continuation of
Eurodollar Rate Loans) is subject to the following conditions precedent:

 

(a)                                  The representations and warranties of the
Borrowers contained in Article V or any other Loan Document, or which
are contained in any document furnished at any time under or in connection
herewith or therewith, shall be true and correct on and as of the date of such
Credit Extension, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and
correct as of such earlier date and except to the extent of changes resulting
from transactions contemplated or permitted by this Agreement and changes
occurring in the ordinary course of business which singly or in the aggregate
do not have a Material Adverse Effect. 
For purposes of this Section 4.02, the representations and
warranties contained in Section 5.05(a) shall be deemed to refer to the
most recent statements furnished pursuant to Section 6.04(a).

 

(b)                                 No Default shall exist, or would result from
such proposed Credit Extension or from the application of the proceeds thereof.

 

55

 

(c)                                  The Administrative Agent and, if applicable,
the L/C Issuer or the Swing Line Lender shall have received a Request for
Credit Extension in accordance with the requirements hereof.

 

Each Request for Credit Extension
(other than a Loan Notice requesting only a conversion of Loans to the other
Type or a continuation of Eurodollar Rate Loans) submitted by the Borrowers
shall be deemed to be a representation and warranty that the conditions
specified in Sections 4.02(a) and/or (b), as applicable, have
been satisfied on and as of the date of the applicable Credit Extension.

 

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

 

The Borrowers jointly and
severally represent and warrant to the Lenders, the L/C Issuer and the Administrative
Agent that, on and as of the date of this Agreement (any disclosure on a
schedule pursuant to this Article V shall be deemed to apply to all
relevant representations and warranties, regardless of whether such schedule is
referenced in each relevant representation):

 

5.01                        Corporate Authority.

 

(a)                                  Incorporation; Good Standing.  Each
of the Borrowers (i) is a corporation (or similar business entity) duly
organized, validly existing and in good standing or in current status under the
laws of its respective jurisdiction of organization, (ii) has all requisite
corporate (or the equivalent company or partnership) power to own its property
and conduct its business as now conducted and as presently contemplated, and
(iii) is in good standing as a foreign corporation (or similar business entity)
and is duly authorized to do business in each jurisdiction in which its
property or business as presently conducted or contemplated makes such
qualification necessary except where a failure to be so qualified would not
have a material adverse effect on the business, assets or financial condition
of such Borrower.

 

(b)                                 Authorization.  The
execution, delivery and performance of the Loan Documents and the transactions
contemplated hereby and thereby (i) are within the corporate (or the equivalent
company or partnership) authority of each of the Borrowers, (ii) have been duly
authorized by all necessary corporate (or other) proceedings, (iii) do not
conflict with or result in any material breach or contravention of any provision
of law, statute, rule or regulation to which any of the Borrowers is subject or
any judgment, order, writ, injunction, license or permit applicable to any of
the Borrowers so as to materially adversely affect the assets, business or any
activity of the Borrowers, and (iv) do not conflict with any provision of the
corporate charter, articles or bylaws (or equivalent other company or
partnership documents) of the Borrowers or any agreement or other instrument
binding upon the Borrowers, including, without limitation, the Indenture.

 

(c)                                  Enforceability.  The
execution, delivery and performance of the Loan Documents will result in valid
and legally binding obligations of the Borrowers enforceable against each in
accordance with the respective terms and provisions hereof

 

56

 

and thereof, except as
enforceability is limited by bankruptcy, insolvency, reorganization, moratorium
or other laws relating to or affecting generally the enforcement of creditors’
rights and except to the extent that availability of the remedy of specific
performance or injunctive relief or other equitable remedy is subject to the
discretion of the court before which any proceeding therefor may be brought.

 

5.02                        Governmental
Approvals.   The
execution, delivery and performance by the Borrowers of the Loan Documents and
the transactions contemplated hereby and thereby do not require any approval or
consent of, or filing with, any governmental agency or authority other than
those already obtained.

 

5.03                        Title
to Properties; Leases.  
The Borrowers own all of
the assets reflected in the consolidated balance sheet as at the Balance Sheet
Date or acquired since that date (except property and assets sold or otherwise
disposed of in the ordinary course of business since that date), subject to no
mortgages, Capitalized Leases, conditional sales agreements, title retention
agreements or Liens (except for Permitted Liens).

 

5.04                        Use
of Proceeds.   The proceeds of the Loans shall be used (a)
to refinance the existing Indebtedness of the Borrowers under the Existing
Credit Agreement, (b) for the redemption of the Series A Preferred Stock as
permitted under Section 7.06(i), (c) for Capital Expenditures and (d)
for working capital, permitted acquisitions, permitted common stock redemption
and repurchases and other general corporate purposes.  No proceeds of the Loans are to be used, and
no portion of any Letter of Credit is to be obtained, in any way that will
violate Regulations U or X of the Board of Governors of the Federal Reserve
System.  The Borrowers will obtain
Letters of Credit solely for general corporate purposes.

 

5.05                        Financial Statements; Solvency.

 

(a)                                  Financial Statements. 
There has been furnished to the Lenders (i) consolidated balance sheets
of the Parent and its Subsidiaries dated the Balance Sheet Date and
consolidated statements of operations for the fiscal year then ended, certified
by Pricewaterhouse Coopers LLP or an independent accounting firm of national
standing (the “Accountants”). 
Said balance sheets and statements of operations have been prepared in
accordance with GAAP, fairly present in all material respects the financial
condition of the Parent and its Subsidiaries, on a consolidated basis as at the
close of business on the date thereof and the results of operations for the
period then ended.  There are no
contingent liabilities of the Borrowers as of such dates involving material
amounts, known to the officers of the Borrowers which have not been disclosed
in said balance sheets and the related notes thereto, as the case may be.

 

(b)                                 Solvency.  The Borrowers as a whole (both
before and after giving effect to the transactions contemplated by this
Agreement) are and will be solvent (i.e., they have assets having a fair value
in excess of the amount required to pay their probable liabilities on their
existing debts as they become absolute and matured) and have, and expect to
have, the ability to pay their debts from time to time incurred in connection
therewith as such debts mature.

 

57

 

5.06                        No
Material Changes, Etc.   Since
the Balance Sheet Date there have occurred no changes in the financial
condition or business of the Parent and its Subsidiaries (excluding Excluded
Subsidiaries) as shown on or reflected in the consolidated balance sheet of the
Parent and its Subsidiaries as at the Balance Sheet Date or the consolidated
statements of income for the periods then ended that have could reasonably be
expected to have Material Adverse Effect. 
Since the Balance Sheet Date there has not been any Restricted Payment
not otherwise permitted under this Agreement.

 

5.07                        Permits,
Franchises, Patents, Copyrights, Etc.   Each
of the Borrowers possesses all franchises, patents, copyrights, trademarks,
trade names, licenses and permits, and rights in respect of the foregoing,
adequate for the conduct of its business substantially as now conducted without
known conflict with any rights of others, except for such franchises, patents,
copyrights, trademarks, trade names, licenses and permits which the Borrowers’
failure to possess could not, individually or in the aggregate, be reasonably
expected to have a Material Adverse Effect.

 

5.08                        Litigation.   Except
as shown on Schedule 5.08 hereto, there are no actions, suits,
proceedings or investigations of any kind pending or, to the knowledge of the
Borrowers, threatened against any Borrower before any court, tribunal or
administrative agency or board which could be reasonably likely to have a Material
Adverse Effect, considered as a whole, or which question the validity of any of
the Loan Documents, or any action taken or to be taken pursuant hereto or
thereto and none of the scheduled matters individually or in the aggregate
could reasonably be expected to have a Material Adverse Effect.

 

5.09                        No
Materially Adverse Contracts, Etc.   None
of the Borrowers is subject to any charter, corporate or other legal
restriction, or any judgment, decree, order, rule or regulation which in the
judgment of the Borrowers’ officers has or is expected in the future to have a
Material Adverse Effect.  None of the
Borrowers is a party to any contract or agreement which in the judgment of the
Borrowers’ officers has or is expected to have any Material Adverse Effect.

 

5.10                        Compliance
With Other Instruments, Laws, Etc.   None
of the Borrowers is violating any provision of its charter documents or by-laws
(or equivalent company documents) or any agreement or instrument by which any
of them may be subject or by which any of them or any of their properties may
be bound or any decree, order, judgment, or any statute, license, rule or
regulation, in a manner which could result in the imposition of substantial
penalties or have a Material Adverse Effect.

 

5.11                        Tax
Status.   The Borrowers have made or filed all United States
federal and state income and all Canadian federal and provincial or territorial
income, as applicable, and all other tax returns, reports and declarations
required by any jurisdiction to which any of them are subject (unless and only
to the extent that any Borrower has set aside on its books provisions
reasonably adequate for the payment of all unpaid and unreported taxes), and
have paid all taxes and other governmental assessments and charges that are
material in amount, shown or determined to be due on such returns, reports and
declarations, except those being contested in good faith; and have set aside on
their books provisions reasonably adequate for the payment of all taxes for
periods subsequent to the periods to which such returns, reports or
declarations apply to the extent required in accordance with GAAP.  All tax returns, report and declarations
required by

 

58

 

any jurisdiction accurately disclose (except for discrepancies which
are not material) the amount of tax payable by the Borrowers in the relevant
jurisdiction except for the amounts being contested in good faith by the
Borrowers.  There are no unpaid taxes in
any material amount claimed to be due by the taxing authority of any
jurisdiction, and the officers of the Borrowers know of no basis for any such
claim.

 

5.12                        Employee Benefit Plans.

 

(a)                                  In General. 
Each Employee Benefit Plan and each Guaranteed Pension Plan has been
maintained and operated in compliance in all material respects with the
provisions of ERISA and, to the extent applicable, the Code, including but not
limited to the provisions thereunder respecting prohibited transactions and the
bonding of fiduciaries and other Persons handling plan funds as required by
§412 of ERISA.  Each Borrower has
heretofore delivered to the Administrative Agent the most recently completed
annual report, Form 5500, with all required attachments, and actuarial
statement required to be submitted under §103(d) of ERISA, with respect to each
Guaranteed Pension Plan.

 

(b)                                 Terminability of Welfare Plans.  No
Employee Benefit Plan, which is an employee welfare benefit plan within the
meaning of §3(1) or §3(2)(B) of ERISA, provides benefit coverage subsequent to
termination of employment, except as required by Title I, Part 6 of
ERISA or the applicable state insurance laws. 
A Borrower may terminate each such Plan at any time (or at any time
subsequent to the expiration of any applicable bargaining agreement) in the discretion
of such Borrower without liability to any Person other than for claims arising
prior to termination.

 

(c)                                  Guaranteed Pension Plans.  Each
contribution required to be made to a Guaranteed Pension Plan, whether required
to be made to avoid the incurrence of an accumulated funding deficiency, the
notice or lien provisions of §302(f) of ERISA, or otherwise, has been timely
made.  No waiver of an accumulated
funding deficiency or extension of amortization periods has been received with
respect to any Guaranteed Pension Plan, and no Borrower nor any ERISA Affiliate
is obligated to or has posted security in connection with an amendment to a
Guaranteed Pension Plan pursuant to §307 of ERISA or §401(a)(29) of the
Code.  No liability to the PBGC (other
than required insurance premiums, all of which have been paid) has been
incurred by any Borrower or any ERISA Affiliate with respect to any Guaranteed
Pension Plan and there has not been any ERISA Reportable Event (other than an
ERISA Reportable Event as to which the requirement of 30 days notice has been
waived), or any other event or condition which presents a material risk of
termination of any Guaranteed Pension Plan by the PBGC.  Based on the latest valuation of each Guaranteed
Pension Plan (which in each case occurred within twelve months of the date of
this representation), and on the actuarial methods and assumptions employed for
that valuation, the aggregate benefit liabilities of all such Guaranteed
Pension Plans within the meaning of §4001 of ERISA did not exceed the aggregate
value of the assets of all such Guaranteed Pension Plans, disregarding for this
purpose the

 

59

 

benefit liabilities and
assets of any Guaranteed Pension Plan with assets in excess of benefit
liabilities.

 

(d)                                 Multiemployer Plans.  No
Borrower nor any ERISA Affiliate has incurred any material liability (including
secondary liability) to any Multiemployer Plan as a result of a complete or
partial withdrawal from such Multiemployer Plan under §4201 of ERISA or as a
result of a sale of assets described in §4204 of ERISA.  No Borrower nor any ERISA Affiliate has been
notified that any Multiemployer Plan is in reorganization or insolvent under
and within the meaning of §4241 or §4245 of ERISA or is at risk of entering
reorganization or becoming insolvent, or that any Multiemployer Plan intends to
terminate or has been terminated under §4041A of ERISA.

 

5.13                        Subsidiaries; Equity Interests;
Capitalization.

 

(a)                                  Subsidiaries. Schedule 5.13(a) hereto sets forth a
complete and accurate list of the Parent’s Subsidiaries, and, with respect to
all Borrower Subsidiaries, including the name of such Subsidiary and its
jurisdiction of incorporation, together with the number of authorized and
outstanding Equity Interests of such Subsidiary.  Each Subsidiary (other than certain Excluded
Subsidiaries and NELS) is directly or indirectly wholly-owned by the
Parent.  The Parent or a Borrower
Subsidiary has good and marketable title to all of the Equity Interests it
purports to own of each Subsidiary (other than Excluded Subsidiaries), free and
clear in each case of any Lien.  All such
Equity Interests have been duly issued and are fully paid and non-assessable.

 

(b)                                 Equity Interests.  As
of the March 31, 2005, the authorized capital stock of the Parent consists of
(i) 100,000,000 shares of Class A common stock (par value $.01 per share)
authorized of which 22,739,148 shares are outstanding, (ii) 1,000,000 shares of
Class B common stock (par value $.01 per share) authorized of which 988,200
shares are outstanding, and (iii) 1,000,000 shares of preferred stock (par
value $.01 per share) authorized of which 53,750 shares of Series A Preferred
Stock are outstanding and held by the Series A Holders.  All such outstanding shares have been duly
issued and are fully paid and non-assessable. 
The Series A Holders are set forth in Schedule 5.13(b).

 

(c)                                  Options, Etc.  As
of March 31, 2005, except as set forth on Schedule 5.13(c), no Person
has outstanding any rights (either pre-emptive or other) or options (except for
the options for common stock or other forms of equity-based compensation issued
to employees, consultants or directors in accordance with a bona fide
compensation plan approved by the Board of Directors of the Parent) to
subscribe for or purchase from the Parent, or any warrants or other agreements
providing for or requiring the issuance by the Parent of, any Equity Interests
convertible into or exchangeable for its capital stock.

 

5.14                        Holding
Company and Investment Company Act.   None of the Borrowers is a “holding company”,
or a “subsidiary company” of a “holding company”, or an “affiliate” of a “holding
company”, as such terms are defined in the Public Utility Holding Company Act
of 1935; nor is any of them an “investment company”, or an “affiliated company”
or a “principal 

 

60

 

underwriter” of an “investment company”, as such terms are defined in
the Investment Company Act of 1940, as amended.

 

5.15                        Absence
of Financing Statements, Etc.   Except with respect to Permitted Liens and
as set forth on Schedule 7.01 hereto, there is no effective financing
statement, security agreement, chattel mortgage, real estate mortgage or other
document filed or recorded with any filing records, registry, or other public
office, which covers, affects or gives notice of any present or possible future
Lien on any assets or property of any of the Borrowers or rights thereunder.

 

5.16                        Environmental Compliance.

 

The Borrowers have taken all
necessary steps to investigate the past and present condition and usage of the
Real Properties and the operations conducted thereon and, based upon such
diligent investigation, have determined that, except as shown on Schedule 5.16:

 

(a)                                  none of the Borrowers or Non-Borrower
Subsidiaries, nor any operator of their properties, is in violation, or alleged
violation, of any judgment, decree, order, law, permit, license, rule or
regulation pertaining to environmental matters, including without limitation, those
arising under RCRA, CERCLA, the Superfund Amendments and Reauthorization Act of
1986 (“SARA”), the Federal Clean Water Act, the Federal Clean Air Act,
the Toxic Substances Control Act, or any state or local or Canadian federal or
provincial statute, regulation, ordinance, order or decree relating to health,
safety or the environment (the “Environmental Laws”), which violation
would have a Material Adverse Effect; and

 

(b)                                 except where it would not have a Material
Adverse Effect, no portion of the Real Property has been used for the handling,
processing, storage or disposal of Hazardous Materials and no underground tank
or other underground storage receptacle for Hazardous Materials is located on
such properties; (ii) in the course of any activities conducted by the
Borrowers or Non-Borrower Subsidiaries, or, to the Borrowers’ knowledge by any
other operators of the Real Property, no Hazardous Materials have been
generated or are being used on such properties; and (iii) to the Borrowers’
knowledge, there have been no unpermitted Releases or threatened Releases of
Hazardous Materials on, upon, into or from the Real Property.

 

5.17                        Perfection
of Security Interests.   All
filings, assignments, pledges and deposits of documents or instruments have
been made or will be made and all other actions have been taken or will be
taken that are necessary under Applicable Law, or reasonably requested by the
Administrative Agent or any of the Lenders, to establish and perfect the
Administrative Agent’s security interests (as collateral agent for the Lenders
and the Agents) in the Collateral to the extent required pursuant to Section
10.15 hereof.  The Collateral and the
Administrative Agent’s rights (as collateral agent for the Lenders and the
Agents) with respect to the Collateral are not subject to any setoff, claims,
withholdings or other defenses, except for Permitted Liens.  The Borrowers are the owners of the
Collateral free from any lien, security interest, encumbrance and any other
claim or demand, except for Permitted Liens.

 

61

 

5.18                        Certain
Transactions.   Except as set forth on Schedule 5.18
or as permitted in Section 7.08, and except for arm’s length
transactions pursuant to which the Borrowers make payments in the ordinary
course of business upon terms no less favorable than the Borrowers could obtain
from third parties, none of the officers, directors, or employees of the
Borrowers are presently a party to any transaction with the Borrowers (other
than for services as employees, officers and directors), including any contract,
agreement or other arrangement providing for the furnishing of services to or
by, providing for rental of real or personal property to or from, or otherwise
requiring payments to or from any officer, director or such employee or, to the
knowledge of the Borrowers, any corporation, partnership, trust or other entity
in which any officer, director, or any such employee has a substantial interest
or is an officer, director, trustee or partner, the value of such transaction,
when aggregated with all other such transactions occurring during the term of
this Agreement, exceeds the Threshold Amount.

 

5.19                        True
Copies of Charter and Other Documents.   The Borrowers have furnished the
Administrative Agent copies, in each case true and complete as of the Closing
Date, of (a) all charter and other incorporation or constituent documents
(together with any amendments thereto) and (b) by-laws (or equivalent company
documents) (together with any amendments thereto).

 

5.20                        Disclosure.   No
representation or warranty made by the Borrowers in this Agreement or in any
agreement, instrument, document, certificate, statement or letter furnished to
the Lenders or the Administrative Agent by or on behalf of or at the request of
the Borrowers in connection with any of the transactions contemplated by the
Loan Documents contains any untrue statement of a material fact or omits to
state a material fact necessary in order to make the statements contained
therein not misleading in light of the circumstances in which they are made.

 

5.21                        Guarantees
of Excluded Subsidiaries.   Except as permitted under Section 7.03,
no Borrower has guaranteed Indebtedness or other financial obligations of any
Excluded Subsidiary.

 

5.22                        Obligations
Constitute Senior Debt.   The Obligations of the Borrowers hereunder
are and will continue to be “Senior Debt” and “Designated Senior Debt” under
and as defined in the Indenture.

 

ARTICLE VI.

AFFIRMATIVE COVENANTS

 

The
Borrowers covenant and agree that, so long as any Obligation or any Letter of
Credit is outstanding or the Lenders have any obligation to make Loans or the
L/C Issuer has any obligation to issue, extend or renew any Letters of Credit
hereunder, or the Lenders have any obligations to reimburse the L/C Issuer for
drawings honored under any Letter of Credit hereunder:

 

6.01                        Punctual
Payment.   The Borrowers will duly and punctually pay
or cause to be paid the principal and interest on the Loans, all reimbursement
obligations under Section 2.03(c), and all fees and other amounts
provided for in this Agreement and the other Loan Documents for which they are
liable, all in accordance with the terms of this Agreement and such other Loan
Documents.

 

62

 

6.02                        Maintenance
of Office.   The Borrowers will maintain their chief
executive offices at the locations set forth on the Perfection Certificates
delivered pursuant to Section 4.01(a)(xi), or at such other place in the
United States of America as each Borrower shall designate upon thirty (30) days’
prior written notice to the Administrative Agent.

 

6.03                        Records
and Accounts.   Each of the Borrowers and the Non-Borrower
Subsidiaries will (a) keep true and accurate records and books of account in
which full, true and correct entries will be made in accordance with GAAP and
with the requirements of all regulatory authorities, (b) maintain adequate
accounts and reserves for all taxes (including income taxes), depreciation,
depletion, obsolescence and amortization of its properties, all other
contingencies, and all other proper reserves and (c) at all times engage the
Accountants as the independent certified public accountants of the Parent and
its Subsidiaries.

 

6.04                        Financial
Statements, Certificates and Information.   The Borrowers will deliver to the
Administrative Agent and each of the Lenders the following:

 

(a)                                  as soon as practicable, but, in any event not
later than ninety (90) days after the end of each fiscal year of the Borrowers,
the consolidated balance sheets of the Parent and its Subsidiaries as at the end
of such year, statements of cash flows, and the related consolidated statements
of operations, setting forth in comparative form the figures for the previous
fiscal year, all such consolidated financial statements to be in reasonable
detail, prepared, in accordance with GAAP and Certified by the
Accountants.  In addition, simultaneously
therewith, the Borrowers will use their best efforts to provide the Lenders
with a written statement from such Accountants to the effect that the Borrowers
are in compliance with the financial covenants set forth in Section 7.11
hereof, and that, in making the examination necessary to said certification,
nothing has come to the attention of such Accountants that would indicate that
any Default or Event of Default exists, or, if such Accountants shall have
obtained knowledge of any then existing Default or Event of Default they shall
disclose in such statement any such Default or Event of Default; provided,
that such Accountants shall not be liable to the Lenders for failure to obtain
knowledge of any Default or Event of Default;

 

(b)                                 as soon as practicable, but in any event not
later than forty-five (45) days after the end of each fiscal quarter of the
Borrowers, copies of the consolidated balance sheets and statement of operations
of the Parent and its Subsidiaries as at the end of such quarter, subject to
year end adjustments, and the related statement of cash flows, all in
reasonable detail and prepared in accordance with GAAP with a certification by
the principal financial or accounting officer of the Borrowers (the “CFO”) that such consolidated financial
statements were prepared in accordance with GAAP and fairly present the
consolidated financial condition of the Borrowers and their Subsidiaries as at
the close of business on the date thereof and the results of operations for the
period then ended;

 

(c)                                  simultaneously with the delivery of the
financial statements referred to in (a) and (b) above, (i) a Compliance
Certificate certified by the CFO that the Borrowers are in compliance with the
covenants contained in Article VI and Article VII of this
Agreement as of the end of the applicable period setting forth in reasonable
detail

 

63

 

computations evidencing such
compliance, provided that, if the Borrowers shall at the time of
issuance of such certificate or at any other time obtain knowledge of any
Default or Event of Default, the Borrowers will include in such Compliance
Certificate or otherwise deliver forthwith to the Lenders a certificate
specifying the nature and period of existence thereof and what action the
Borrowers propose to take with respect thereto and attaching, in the event such
Default or Event of Default relates to Environmental Matters, an Environmental
Compliance Certificate;

 

(d)                                 contemporaneously with, or promptly
following, the filing or mailing thereof, copies of all material of a financial
nature filed with the Securities and Exchange Commission or sent to the
stockholders of the Parent or any of the Borrowers to the extent the same are
not available on EDGAR;

 

(e)                                  as soon as practicable, but in any event not
later than thirty (30) days after the commencement of each fiscal year of the
Borrowers and the Non-Borrower Subsidiaries, a copy of the annual budget,
projections and business plan for the Borrowers and the Non-Borrower
Subsidiaries for such fiscal year; and

 

(f)                                    from time to time such other financial data
and other information (including accountants’ management letters) as the
Lenders may reasonably request.

 

The Borrowers hereby
authorize the Lenders to disclose any information obtained pursuant to this
Agreement to all appropriate governmental regulatory authorities where required
by Applicable Law; provided, however, that the Lenders shall, to
the extent practicable and allowable under Applicable Law, notify the Borrowers
within a reasonable period prior to the time any such disclosure is made; and provided
further, this authorization shall not be deemed to be a waiver of any
rights to object to the disclosure by the Lenders of any such information which
any Borrower has or may have under the federal Right to Financial Privacy Act
of 1978, as in effect from time to time.

 

Documents required to be
delivered pursuant to this Section (to the extent any such documents are
included in materials otherwise filed with the SEC and available in EDGAR) may
be delivered electronically and if so delivered, shall be deemed to have been
delivered on the date (i) on which the Borrowers post such documents, or provide
a link thereto on the Borrowers’ website on the Internet at the website address
listed on Schedule 10.02; or (ii) on which such documents are posted on
the Borrowers’ behalf on an Internet or intranet website, if any, to which each
Lender and the Administrative Agent have access (whether a commercial,
third-party website or whether sponsored by the Administrative Agent); provided
that: (i) the Borrowers shall deliver paper copies of such documents to the
Administrative Agent or any Lender that requests the Borrowers to deliver such
paper copies until a written request to cease delivering paper copies is given
by the Administrative Agent or such Lender and (ii) the Borrowers shall notify
the Administrative Agent and each Lender (by telecopier or electronic mail) of
the posting of any such documents and provide to the Administrative Agent by
electronic mail electronic versions (i.e., soft copies) of such
documents.  Notwithstanding anything
contained herein, in every instance the Borrowers shall be required to provide
paper copies of the Compliance Certificates required by this Section to the
Administrative Agent.  Except for such
Compliance Certificates, the Administrative Agent shall have no obligation to 

 

64

 

request the delivery or to maintain copies of
the documents referred to above, and in any event shall have no responsibility
to monitor compliance by the Borrowers with any such request for delivery, and
each Lender shall be solely responsible for requesting delivery to it or
maintaining its copies of such documents.

 

The Borrowers hereby
acknowledge that (a) the Administrative Agent and/or the Arranger will make
available to the Lenders and the L/C Issuer materials and/or information
provided by or on behalf of the Borrowers hereunder (collectively, “Borrowers
Materials”) by posting the Borrowers Materials on IntraLinks or another
similar electronic system (the “Platform”) and (b) certain of the
Lenders may be “public-side” Lenders (i.e., Lenders
that do not wish to receive material non-public information with respect to the
Borrower or its securities) (each, a “Public Lender”).  The Borrowers hereby agree that (w) all
Borrowers Materials that are to be made available to Public Lenders shall be
clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that
the word “PUBLIC” shall appear prominently on the first page thereof; (x) by
marking Borrowers Materials “PUBLIC,” the Borrowers shall be deemed to have
authorized the Administrative Agent, the Arranger, the L/C Issuer and the
Lenders to treat such Borrowers Materials as not containing any material
non-public information with respect to the Borrowers or their securities for
purposes of United States Federal and state securities laws (provided, however,
that to the extent such Borrowers Materials constitute Information, they shall
be treated as set forth in Section 10.07); (y) all Borrowers Materials
marked “PUBLIC” are permitted to be made available through a portion of the
Platform designated “Public Investor;” and (z) the Administrative Agent and the
Arranger shall be entitled to treat any Borrowers Materials that are not marked
“PUBLIC” as being suitable only for posting on a portion of the Platform not
designated “Public Investor.”  Notwithstanding
the foregoing, the Borrowers shall be under no obligation to mark any Borrowers
Materials “PUBLIC.”

 

6.05                        Legal
Existence and Conduct of Business.   Except where the failure of a Borrower or
Non-Borrower Subsidiary to remain so qualified would not have a Material
Adverse Effect, each Borrower and each Non-Borrower Subsidiary will do or cause
to be done all things necessary to preserve and keep in full force and effect
its legal existence, legal rights and franchises; effect and maintain its foreign
qualifications, licensing, domestication or authorization except as terminated
by its Board of Directors in the exercise of its reasonable judgment; use its
best efforts to comply with all Applicable Laws; and shall not become obligated
under any contract or binding arrangement which, at the time it was entered
into would have a Materially Adverse Effect on the Borrowers and Non-Borrower
Subsidiaries taken as a whole.  Each
Borrower and each Non-Borrower Subsidiary will continue to engage primarily in
the businesses now conducted by it and in related businesses.

 

6.06                        Maintenance
of Properties.   The Borrowers and the Non-Borrower
Subsidiaries will cause all material properties used or useful in the conduct
of their businesses to be maintained and kept in good condition, repair and
working order and supplied with all necessary equipment and will cause to be
made all necessary repairs, renewals, replacements, betterments and
improvements thereof, all as in the judgment of the Borrowers and Non-Borrower
Subsidiaries may be necessary so that the businesses carried on in connection
therewith may be properly and advantageously conducted at all times; provided,
however, that nothing in this section shall prevent any Borrower or
Non-Borrower Subsidiary from discontinuing the operation and maintenance of any
of its properties if such discontinuance is, in the judgment of

 

65

 

such Borrower or Non-Borrower Subsidiary, desirable in the conduct of
its or their business and which does not in the aggregate have a Material
Adverse Effect.

 

6.07                        Maintenance
of Insurance.   The Borrowers and the Non-Borrower
Subsidiaries will maintain with financially sound and reputable insurance
companies, funds or underwriters’ insurance, including self-insurance, of the
kinds, covering the risks and in the relative proportionate amounts usually
carried by reasonable and prudent companies conducting businesses similar to
that of the Borrowers and Non-Borrower Subsidiaries.  In addition, the Borrowers and the
Non-Borrower Subsidiaries will furnish from time to time, upon the
Administrative Agent’s request, a summary of the insurance coverage of each of
the Borrowers and Non-Borrower Subsidiaries, which summary shall be in form and
substance satisfactory to the Administrative Agent and, if requested by the
Administrative Agent, will furnish to the Administrative Agent copies of the
applicable policies of the Borrowers naming the Administrative Agent as a loss
payee thereunder.

 

6.08                        Taxes.   The Borrowers
and the Non-Borrower Subsidiaries will each duly pay and discharge, or cause to
be paid and discharged, before the same shall become overdue, all material
taxes, assessments and other governmental charges (other than taxes,
assessments and other governmental charges imposed by jurisdictions other than
the United States or Canada or a political division thereof which in the
aggregate are not material to the business or assets of any Borrower or
Non-Borrower Subsidiary on an individual basis or of the Borrowers and
Non-Borrower Subsidiaries taken as a whole) imposed upon it and its real
properties, sales and activities, or any part thereof, or upon the income or
profits therefrom, as well as all claims for labor, materials, or supplies,
which if unpaid might by law become a lien or charge upon any of its property; provided,
however, that any such tax, assessment, charge, levy or claim need not
be paid if the validity or amount thereof shall currently be contested in good
faith by appropriate proceedings and if such Borrower or Non-Borrower
Subsidiary shall have set aside on its books adequate reserves with respect
thereto; and provided, further, that such Borrower and
Non-Borrower Subsidiary will pay all such taxes, assessments, charges, levies
or claims forthwith upon the commencement of proceedings to foreclose any lien
which may have attached as security therefor.

 

6.09                        Inspection
of Properties, Books and Contracts.   The Borrowers shall permit the Lenders, the
Administrative Agent or any of their designated representatives, upon
reasonable notice, to visit and inspect any of the properties of the Borrowers,
to examine the books of account of the Borrowers (including the making of
periodic accounts receivable reviews), or contracts (and to make copies thereof
and extracts therefrom), and to discuss the affairs, finances and accounts of
the Borrowers with, and to be advised as to the same by, their officers, all at
such times and intervals as the Lenders or the Agents may reasonably request.

 

6.10                        Compliance
with Laws, Contracts, Licenses and Permits; Maintenance of Material Licenses
and Permits.   Each Borrower will, and will cause the
Non-Borrower Subsidiaries to, except where noncompliance would not have a
Material Adverse Effect (a) comply with the provisions of its charter
documents, articles of incorporation, other constituent documents and by-laws
and all agreements and instruments by which it or any of its properties may be
bound; (b) comply with all Applicable Laws and regulations (including Environmental
Laws), decrees, orders, judgments, licenses and permits, including, without
limitation, all 

 

66

 

environmental permits hereto (“Applicable Laws”); (c) comply in
all material respects with all agreements and instruments by which it or any of
its properties may be bound; (d) maintain all material operating permits for
all landfills now owned or hereafter acquired; and (e) dispose of hazardous
waste only at licensed disposal facilities operating, to the best of such
Borrower’s knowledge after reasonable inquiry, in compliance with Environmental
Laws.  If at any time while any Loan or
Letter of Credit is outstanding or any Lender, the L/C Issuer or the
Administrative Agent has any obligation to make Loans or issue Letters of
Credit hereunder, any authorization, consent, approval, permit or license from
any officer, agency or instrumentality of any government shall become necessary
or required in order that any Borrower may fulfill any of its obligations hereunder,
such Borrower will immediately take or cause to be taken all reasonable steps
within the power of such Borrower to obtain such authorization, consent,
approval, permit or license and furnish the Lenders with evidence thereof.

 

6.11                        Environmental
Indemnification.   The Borrowers covenant and agree that they will
jointly and severally, in accordance with Section 10.12, indemnify and
hold the Agents, the L/C Issuer and the Lenders, and their respective
affiliates, agents, directors, officers and shareholders, harmless from and
against any and all claims, expense, damage, loss or liability incurred by such
indemnified parties (including all costs of legal representation incurred by
such indemnified parties) relating to (a) any Release or threatened Release of
Hazardous Materials on the Real Property; (b) any violation of any
Environmental Laws with respect to conditions at the Real Property or the
operations conducted thereon; or (c) the investigation or remediation of
offsite locations at which the Borrowers, or their predecessors are alleged to
have directly or indirectly Disposed of Hazardous Materials.  It is expressly acknowledged by the Borrowers
that this covenant of indemnification shall survive any foreclosure or any
modification, release or discharge of any or all of the Security Documents or
the payment of the Loans and shall inure to the benefit of the Agents and the
Lenders and their respective successors and assigns.

 

6.12                        Further
Assurances.   The Borrowers will cooperate with the
Lenders and the Administrative Agent and execute such further instruments and
documents as the Lenders or the Administrative Agent shall reasonably request
to carry out to their satisfaction the transactions contemplated by this
Agreement.

 

6.13                        Notice
of Potential Claims or Litigation.   The Borrowers shall deliver to the Lenders
and the Administrative Agent, within thirty (30) days of receipt thereof,
written notice of the initiation of any action, claim, complaint, or any other
notice of dispute or potential litigation (including without limitation any
alleged violation of any Environmental Law), wherein the potential liability is
in excess of $2,500,000, or could otherwise reasonably be expected to have a
Material Adverse Effect, together with a copy of each such notice received by
any Borrower.

 

6.14                        Notice of Certain Events Concerning Insurance
and Environmental Claims.

 

(a)                                  The Borrowers will provide the Lenders and
the Agents with written notice as to any material cancellation or material
adverse change in any insurance of any of the Borrowers within ten (10)
Business Days after such Borrower’s receipt of any notice (whether formal or
informal) of such material cancellation or material change by any of its
insurers.

 

67

 

(b)                                 The Borrowers will promptly notify the
Lenders and the Agents in writing of any of the following events:

 

(i)                                     upon any Borrower’s obtaining knowledge of
any violation of any Environmental Law which violation could have a Material
Adverse Effect;

 

(ii)                                  upon any Borrower’s obtaining knowledge of
any potential or known Release, or threat of Release, of any Hazardous
Materials at, from, or into the Real Property which could have a Material
Adverse Effect;

 

(iii)                               upon any Borrower’s receipt of any notice of
any material violation of any Environmental Law or of any Release or threatened
Release of Hazardous Materials, including a notice or claim of liability or
potential responsibility from any third party (including any federal, state,
provincial, territorial or local governmental officials) and including notice
of any formal inquiry, proceeding, demand, investigation or other action with
regard to (A) any Borrower’s or any Person’s operation of the Real Property,
(B) the presence or Release of Hazardous Materials on, from, or into the Real
Property, or (C) investigation or remediation of offsite locations at which any
Borrower or its predecessors are alleged to have directly or indirectly
Released Hazardous Substances, and, in each case, with respect to which the
liability associated therewith could be reasonably expected to exceed the
Threshold Amount; or

 

(iv)                              upon any Borrower’s obtaining knowledge that
any expense or loss which individually or in the aggregate exceeds the
Threshold Amount has been incurred by such Governmental Authority in connection
with the assessment, containment, removal or remediation of any Hazardous
Materials with respect to which any Borrower may be liable or for which a Lien
may be imposed on the Real Property.

 

6.15                        Notice
of Default.   The Borrowers will promptly notify the
Lenders and the Administrative Agent in writing of the occurrence of any
Default or Event of Default.  If any
Person shall give any notice or take any other action in respect of a claimed
default (whether or not constituting an Event of Default) under this Agreement
or any other note, evidence of Indebtedness, indenture or other obligation
evidencing Indebtedness in excess of the Threshold Amount (including, without
limitation, the Indenture) as to which any Borrower is a party or obligor,
whether as principal or surety, the Borrowers shall forthwith give written
notice thereof to the Lenders and the Administrative Agent, describing the
notice of action and the nature of the claimed default.

 

6.16                        Closure
and Post Closure Liabilities.   The Borrowers shall at all times adequately
accrue, in accordance with GAAP, and fund, as required by applicable
Environmental Laws, all closure and post closure liabilities with respect to
the operations of the Borrowers and the Non-Borrower Subsidiaries.

 

68

 

6.17                        Subsidiaries.   The Parent
shall at all times directly or indirectly through a Subsidiary own all of the
Equity Interests of each Subsidiary (other than the Excluded Subsidiaries and
NELS).

 

6.18                        Interest
Rate Protection.   The Borrowers will, within ninety (90) days
of the Closing Date, have a minimum aggregate amount of not less than 30% of
the notional amount of Consolidated Total Funded Debt as of the Effective Date
on a fixed rate long term basis (whether through Swap Contracts or as a result
of having a fixed rate of interest by its terms) on terms and conditions
reasonably acceptable to the Administrative Agent.

 

6.19                        Additional
Borrowers.   To the extent that such creation or
acquisition is permitted under this Agreement, all newly-created or
newly-acquired Subsidiaries (other than Excluded Subsidiaries and Non-Borrower
Subsidiaries) shall become Borrowers hereunder by, if applicable, signing
allonges to the Notes, entering into a joinder and affirmation to this
Agreement in substantially the form of Exhibit G attached hereto (a “Joinder
Agreement”) providing that such Subsidiary shall become a Borrower
hereunder, and providing such other documentation as the Lenders or the
Administrative Agent may reasonably request including, without limitation,
documentation with respect to conditions noted in Section 4.01 and 4.02
hereof.  In such event, the
Administrative Agent is hereby authorized by the parties to amend Schedule 1
hereto to include such Subsidiary as a Borrower hereunder.

 

ARTICLE
VII.

NEGATIVE COVENANTS

 

So long as any Lender shall
have any Commitment hereunder, any Loan or other Obligation hereunder shall
remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding:

 

7.01                        Liens.   None of the
Borrowers or the Non-Borrower Subsidiaries shall, directly or indirectly,
create or incur or suffer to be created or incurred or to exist any Lien, of
any kind upon any property or assets of any character (including, without
limitation, any of the Collateral), whether now owned or hereafter acquired, or
upon the income or profits therefrom; or transfer any of such property or
assets or the income or profits therefrom for the purpose of subjecting the
same to the payment of Indebtedness or performance of any other obligation in
priority to payment of its general creditors; or acquire, or agree or have an
option to acquire, any property or assets upon conditional sale or other title
retention or purchase money security agreement, device or arrangement; or
suffer to exist for a period of more than thirty (30) days after the same shall
have become payable any Indebtedness or claim or demand against it which if
unpaid might by law or upon bankruptcy or insolvency, or otherwise, be given
any priority whatsoever over its general creditors; or sell, assign, pledge or
otherwise transfer any accounts, contract rights, general intangibles or
chattel paper, with or without recourse, except as follows (the “Permitted Liens”):

 

(a)                                  Liens on property to secure Indebtedness
permitted under Section 7.03(e) hereof, provided that such Liens (i)
shall encumber only the specific equipment being

 

69

 

financed or leased, (ii) shall
not exceed the fair market value thereof and (iii) shall not encumber property
with an aggregate value in excess of $40,000,000;

 

(b)                                 Liens to secure taxes, assessments and other
government charges or claims for labor, material or supplies in respect of
obligations not overdue and government liens in existence less than 90 days
from the date of creation thereof to secure taxes, assessments, charges, levies
or claims being contested in good faith by appropriate proceedings if the
applicable Borrower shall have set aside on its books adequate reserves with
respect thereto;

 

(c)                                  Deposits or pledges made in connection with,
or to secure payment of, workmen’s compensation, unemployment insurance, old
age pensions or other social security obligations;

 

(d)                                 Liens of carriers, warehousemen, mechanics
and materialmen, and other like liens, in existence less than 120 days from the
date of creation thereof in respect of obligations not overdue;

 

(e)                                  Encumbrances consisting of easements, rights
of way, zoning restrictions, restrictions on the use of Real Property and
defects and irregularities in the title thereto, landlord’s or lessor’s liens
under leases to which any Borrower is a party, and other minor liens or
encumbrances none of which in the opinion of the respective Borrower interferes
materially with the use of the property affected in the ordinary conduct of the
business of such Borrower, which defects do not individually or in the
aggregate have a material adverse effect on the business of such Borrower individually
or of the Borrowers on a consolidated basis;

 

(f)                                    Liens existing as of the date hereof securing
Indebtedness permitted under Section 7.03 hereof and listed on Schedule
7.01 hereto;

 

(g)                                 Liens granted pursuant to the Security
Documents to secure the Obligations (including secured Obligations hereunder
with respect to Fuel Derivatives Obligations with Lenders);

 

(h)                                 Liens granted to secure Indebtedness with
respect to IRBs permitted pursuant to Section 7.03(o) only with respect
to assets acquired and/or financed by such IRBs; and

 

(i)                                     Liens on the Equity Interests of the Excluded
Subsidiaries.

 

7.02                        Investments.   None of the
Borrowers or the Non-Borrower Subsidiaries (other than the Insurance
Subsidiary) shall, directly or indirectly, make or permit to exist or to remain
outstanding any other Investment other than (collectively, “Permitted
Investments”):

 

(a)                                  Investments in obligations of the United
States of America or Canada and agencies thereof and obligations guaranteed by
the United States of America or Canada that are due and payable within one (1)
year from the date of acquisition;

 

70

 

(b)                                 certificates of deposit, time deposits,
bankers’ acceptances or repurchase agreements which are fully insured or are
issued by commercial banks organized under the laws of the United States of
America or any state thereof or Canada and having total assets in excess of
$1,000,000,000;

 

(c)                                  commercial paper maturing not more than nine
(9) months from the date of issue, provided that, at the time of
purchase, such commercial paper is not rated lower than “P-1” by Moody’s or “A-1”
by S&P;

 

(d)                                 Investments associated with insurance
policies required or allowed by state or provincial law to be posted as
financial assurance for landfill closure and post-closure liabilities;

 

(e)                                  Investments by any Borrower in any other
Borrower;

 

(f)                                    Investments existing on the Closing Date and
listed on Schedule 7.02 hereto;

 

(g)                                 any money market account, short-term asset
management account or similar investment account maintained with one of the
Lenders;

 

(h)                                 loans made to employees of any of the
Borrowers in an aggregate amount not to exceed $2,000,000 at any time
outstanding;

 

(i)                                     Investments in the form of Permitted
Acquisitions permitted pursuant to Section 7.04(a) hereof and
Indebtedness permitted under Section 7.03 hereof; and

 

(j)                                     Investments after the Closing Date in
Excluded Subsidiaries not to exceed in the aggregate $75,000,000 outstanding at
any time;

 

(k)                                  Investments in the Insurance Subsidiary not
to exceed $10,000,000 at any time outstanding; and

 

(l)                                     temporary Investments in De Minimis
Subsidiaries made solely in connection with their liquidation or dissolution.

 

provided; that none of the Borrowers or Non-Borrower
Subsidiaries shall make any Investment in any Excluded Subsidiary unless both
before and after giving effect thereto there does not exist a Default or Event
of Default and no Default or Event of Default would be created by the making of
such Investment.

 

7.03                        Indebtedness.   None of the
Borrowers or the Non-Borrower Subsidiaries shall, directly or indirectly,
become in any way obligated under a guarantee or become or be a surety of, or
otherwise create, incur, assume, or be or remain liable, contingently or
otherwise, with respect to any Indebtedness, or become or be responsible in any
manner (whether by agreement to purchase any obligations, stock, assets, goods
or services, or to supply or advance any funds, assets, goods or services or
otherwise) with respect to any undertaking or Indebtedness of any other Person,
or incur any Indebtedness other than:

 

71

 

(a)                                  Indebtedness of the Borrowers to the Lenders,
the L/C Issuer and the Administrative Agent arising under this Agreement and
the Loan Documents;

 

(b)                                 Subject to Section 7.09, Seller
Subordinated Debt not to exceed $15,000,000 in aggregate outstanding principal
amount at any time;

 

(c)                                  Existing Indebtedness of the Borrowers with
respect to loans and Capitalized Leases listed on Schedule 7.03
hereto, on the terms and conditions in effect as of the date hereof, together
with any renewals, extensions or refinancings thereof on terms which are not
materially different than those in effect as of the Closing Date;

 

(d)                                 Endorsements for collection, deposit or
negotiation and warranties of products or services (including unsecured
performance and payment bonds (“Performance Bonds”)), in each case
incurred in the ordinary course of business;

 

(e)                                  Indebtedness of the Borrowers incurred in
connection with the acquisition or lease of any equipment by the Borrowers
under any Synthetic Lease, Capitalized Lease or other lease arrangement or
purchase money financing; provided that the
aggregate outstanding principal amount of such Indebtedness of the Borrowers
(including Indebtedness of such type listed on Schedule 7.03) shall not exceed $40,000,000 at
any time (excluding Indebtedness with respect to any Capital Leases that are
landfill operating and management leases);

 

(f)                                    Indebtedness of the Borrowers to any of the
Lenders or any of their Affiliates under fuel price swaps, fuel price caps, and
fuel price collar or floor agreements, and similar agreements or arrangements
designed to protect against or manage fluctuations in fuel prices with respect
to fuel purchased in the ordinary course of business of the Borrowers (“Fuel Derivatives Obligations”), provided that the maturity of such agreements
do not exceed thirty-six (36) months and the terms thereof are consistent with
past practices of the Borrowers;

 

(g)                                 Indebtedness of the Borrowers in respect of
non-speculative Swap Contracts on terms consistent with past practices of the
Borrowers (other than those described in subsection (f) above);

 

(h)                                 Other unsecured Indebtedness incurred in
connection with the acquisition by the Borrowers of real or personal property,
including any Indebtedness incurred with respect to non-compete payments in
connection with such acquisition(s), provided that the aggregate
outstanding principal amount of such Indebtedness of the Borrowers shall not
exceed $15,000,000 at any time;

 

(i)                                     Intercompany Indebtedness among the Borrowers
and the Non-Borrower Subsidiaries;

 

(j)                                     Indebtedness with respect to mandatory
redemption obligations as set forth in the Series A Certificate and accrued
dividends on the Borrower’s preferred stock; provided
that no Restricted Payments shall be made with respect to such Indebtedness

 

72

 

during the term of this
Agreement except as set forth in Section 7.06 hereof, or as otherwise
permitted by the prior written consent of the Required Lenders;

 

(k)                                  Senior Subordinated Debt not to exceed
$350,000,000 in aggregate principal amount;

 

(l)                                     Surety and similar bonds and completion bonds
and bid guarantees provided by or issued on behalf of the Borrowers with
respect to the closure, final-closure and post-closure liabilities related to
landfills owned or operated by the Borrowers; provided that the
aggregate amount of such Indebtedness shall not exceed $150,000,000 at any time
outstanding;

 

(m)                               Indemnification, adjustment of purchase price
or similar obligations, in each case, incurred or assumed in connection with
the Permitted Acquisitions or permitted dispositions of Equity Interests or
assets of the Borrowers; provided that the maximum aggregate liability
in respect of all such obligations shall at no time exceed the gross proceeds,
including non-cash proceeds, (the fair market value of such non-cash proceeds
being measured at the time received or paid and without giving effect to any
subsequent changes in value) actually received or paid by the Borrowers in
connection with such Permitted Acquisition or disposition;

 

(n)                                 [Reserved]

 

(o)                                 Indebtedness with respect to IRBs, provided
that, other than with respect to L/C Supported IRBs, such Indebtedness shall
not exceed $100,000,000 at any time outstanding;

 

(p)                                 Guarantees of Indebtedness permitted pursuant
to this Section 7.03(a) to (o) made by any of the Borrowers, provided
that the amount of such guarantees does not exceed the amount of the underlying
Indebtedness and that any guarantees of Subordinated Debt are equally
subordinated; and

 

(q)                                 Guarantees of Indebtedness of the Excluded
Subsidiaries not exceeding $35,000,000 in the aggregate.

 

7.04                        Mergers; Consolidation; Sales.

 

(a)                                  Mergers and Acquisitions. None of the Borrowers or Foreign
Subsidiaries shall, directly or indirectly, become a party to any merger,
amalgamation, or consolidation, or agree to or effect any asset acquisition or
stock acquisition (other than the acquisition of assets in the ordinary course
of business consistent with past practices or the acquisition of Excluded
Subsidiaries permitted under Section 7.02(j)) except the merger or
consolidation of, or asset or stock acquisitions between Borrowers and except
as otherwise provided in this Section 7.04(a).  The Borrowers and the Foreign Subsidiaries
may purchase or otherwise acquire all or substantially all of the assets or
stock or other equity interests of any other Person (a “Permitted Acquisition”) provided  that:

 

73

 

(i)                                     the Borrowers are in current compliance with
and, giving effect to the proposed acquisition (including any borrowings made
or to be made in connection therewith), will continue to be in compliance with
all of its covenants and agreements contained in this Agreement, including the
financial covenants in Section 7.11 hereof on a pro forma historical
combined basis as if the transaction occurred on the first day of the period of
measurement;

 

(ii)                                  at the time of such acquisition, no Default
or Event of Default has occurred and is continuing, and such acquisition will
not otherwise create a Default or an Event of Default hereunder;

 

(iii)                               the business to be acquired is predominantly
in the same lines of business as the Borrowers, or businesses reasonably
related or incidental thereto (e.g., non-hazardous solid waste collection,
transfer, hauling, recycling, or disposal);

 

(iv)                              the business to be acquired operates predominantly
in the United States or Canada;

 

(v)(A)
in the case of an asset acquisition, all of the assets acquired shall be
acquired by an existing Borrower or a newly-created wholly-owned Subsidiary of
the Parent, which, if it is a U.S. Subsidiary, shall become a Borrower
hereunder in accordance with Section 6.19, and 100% of its Equity
Interests and its assets shall be pledged simultaneously with such acquisition
to the Administrative Agent for the benefit of the Lenders and the Agents, (B)
in the case of an acquisition of Equity Interests of a U.S. company, the
acquired company, simultaneously with such acquisition, shall become a Borrower
in accordance with Section 6.19 and 100% of its Equity Interests and its
assets shall be pledged simultaneously with such acquisition to the
Administrative Agent for the benefit of the Lenders and the Administrative
Agent or the acquired company shall be merged or amalgamated with and into a
wholly-owned Subsidiary that is a Borrower and such newly-acquired or
newly-created Subsidiary shall otherwise comply with the provisions of Section
6.19 hereof; or (C) in the case of acquisition of Equity Interests of a
foreign Person that, in connection therewith, becomes a Foreign Subsidiary, the
acquiring Borrower shall pledge 65% of the Equity Interests of such Foreign
Subsidiary simultaneously with such acquisition to the Administrative Agent for
the benefit of the Lenders and the Administrative Agent.

 

(vi)                              if the total consideration in connection with
any such acquisition, including the aggregate amount of all liabilities
assumed, but excluding the payment of all fees and expenses relating to such
purchase, exceeds the Threshold Amount (a “Material
Acquisition”), then not later than seven (7) days prior to the proposed
acquisition date, the Borrowers shall furnish the Administrative Agent with (i)
a copy of the purchase agreement, (ii) its audited (if available, or otherwise
unaudited) financial statements for the preceding two (2) fiscal years or such
shorter period of time as such entity or division has been in existence, (iii)
a summary of the Borrowers’ results of their standard due diligence review,
(iv) in the case of a landfill acquisition or if the target company owns a
landfill, a review by a Consulting Engineer and a copy of the Consulting
Engineer’s report, (v) a Compliance Certificate demonstrating compliance with Section 7.11

 

74

 

hereof on a pro forma
historical combined basis as if the transaction occurred on the first day of
the period of measurement, (vi) written evidence that the board of directors
and (if required by Applicable Law) the shareholders, or the equivalent
thereof, of the business to be acquired have approved such acquisition, and
(vii) such other information as the Administrative Agent may reasonably
request, which in each case shall be in form and substance acceptable to the
Administrative Agent;

 

(vii)                           the board of directors and (if required by
Applicable Law) the shareholders, or the equivalent thereof, of the business to
be acquired shall have approved such acquisition;

 

(viii)                        if such acquisition is made by a merger or
amalgamation, a Borrower, or a wholly-owned Subsidiary of the Parent (which may
be the acquired company) which shall become a Borrower in connection with such
merger, shall be the surviving entity, except with respect to an Excluded
Subsidiary or Non-Borrower Subsidiary; provided, that if the surviving
entity is a Foreign Subsidiary, the applicable Borrower shall pledge 65% of the
Equity Interests of such Foreign Subsidiary simultaneously with such merger or
amalgamation to the Administrative Agent for the benefit of the Lenders and the
Administrative Agent; and

 

(ix)                                cash consideration to be paid by any Borrower
in connection with any acquisition or series of related acquisitions (including
cash deferred payments, contingent or otherwise, and the aggregate amount of
all Indebtedness assumed or, in the case of an acquisition of Equity Interests,
including all Indebtedness of the target company) shall not exceed $20,000,000
without the consent of the Administrative Agent and the Required Lenders.

 

(b)                                 Dispositions of Assets. Except as otherwise provided in this
Section, none of the Borrowers or the Foreign Subsidiaries shall, directly or
indirectly, become a party to or agree to or effect any disposition of assets; provided
that, subject to any mandatory repayment provisions in respect of the Term B
Loan set forth in the Conforming Amendment, so long as no Default or Event of
Default has occurred and is continuing, during the term of this Agreement, the
Borrowers and the Foreign Subsidiaries may (i) sell or transfer assets
(including in connection with an asset swap) or Equity Interests having an
aggregate fair market value not in excess of 5% of Consolidated Total Assets
(the “Basket”), for fair and reasonable value, as determined by the
board of directors of the Parent in good faith and evidenced by a resolution of
such directors which shall be delivered by the Parent to the Administrative
Agent prior to the consummation of such sale or transfer, and, in the case of
an asset swap, so long as such asset swap in the reasonable business judgment
of the Parent does not have a Material Adverse Effect and (ii) sell the Equity
Interests or assets of the Specified Entities. 
Notwithstanding the foregoing, the sale of inventory, the licensing of
intellectual property and the disposition of obsolete assets or assets that are
no longer useful, in each case in the ordinary course of business consistent
with past practices, are permitted hereunder without being charged against the
Basket.

 

(c)                                  Notwithstanding anything to the contrary in
this Section 7.04, the Borrowers and the Foreign Subsidiaries may merge,
amalgamate or liquidate any De Minimis Subsidiaries.

 

75

 

7.05                        Reserved.

 

7.06                        Restricted
Payments.   None of the Borrowers or the Non-Borrower
Subsidiaries (other than the Insurance Subsidiary) shall, directly or
indirectly, make any Restricted Payments except that, (a) any Subsidiary may
declare or pay Distributions to the Parent or its own parent, (b) the Parent
may cause quarterly Distributions on its preferred stock (including the Series
A Preferred Stock) to accrue and be added to the liquidation value of such
preferred stock, (c) the Parent may convert all or a portion of the Series A
Preferred Stock into shares of its common stock; provided, however, that
such conversion shall not be made unless permitted under the terms of the
Senior Subordinated Debt Documents, (d) NELS may make ratable distributions to
its equity holders and make payments under contracts or other arrangements
entered into with any of its equity holders, and (e) provided no Default or
Event of Default shall have occurred and be continuing, the Parent may pay cash
Distributions not to exceed $3,500,000 per fiscal year in connection with the
Series A Preferred Stock.  In addition,
except as otherwise expressly permitted in this Section, the Borrowers shall
not prepay, redeem, convert, retire, repurchase or otherwise acquire shares of
any class of Equity Interests of the Borrowers or Non-Borrower Subsidiaries
without the prior written consent of the Administrative Agent and the Required
Lenders, provided that, so long as no Default or Event of Default shall
have occurred and be continuing, the Parent shall be permitted to:

 

(i)                                     redeem the Series A Preferred Stock for a
price not to exceed $77,000,000 so long as, after giving effect to the
redemption and any Borrowing incurred to accomplish such redemption on a pro
forma basis, the ratio of (A) Consolidated Total Funded Debt as of such date to
(B) Consolidated EBITDA for the period of four (4) consecutive fiscal quarters
ending prior to such date shall not exceed 4.50:1.00; and

 

(ii)                                  repurchase its common stock for a maximum
aggregate amount of $30,000,000 during the period from the Closing Date to the
Maturity Date (or such earlier date as the Commitments are terminated pursuant
to the terms hereunder) so long as, after giving effect to any Borrowing
incurred to accomplish such repurchase on a pro forma basis, the ratio of (A)
Consolidated Total Funded Debt as of such date to (B) Consolidated EBITDA for
the period of four (4) consecutive fiscal quarters ending prior to such date
shall not exceed 4.00:1.00.

 

7.07                        Change
in Nature of Business.   None of the Borrowers or the Non-Borrower
Subsidiaries shall, directly or indirectly, engage in any material line of
business substantially different from those lines of business conducted by the
Borrower and Non-Borrower Subsidiaries on the date hereof or any business
substantially related or incidental thereto.

 

7.08                        Transactions
with Affiliates.   None of the Borrowers or the Non-Borrower
Subsidiaries shall, directly or indirectly, enter into any transaction of any
kind with any Affiliate (other than for services as employees, officers and
directors of any of the Borrowers or Non-Borrower Subsidiaries), whether or not
in the ordinary course of business, other than on fair and reasonable terms
substantially as favorable to the Borrowers or Non-Borrower Subsidiaries as
would be obtainable by the Borrowers or Non-Borrower Subsidiaries at the time
in a comparable arm’s length transaction with a Person other than an Affiliate.

 

76

 

7.09                        Burdensome
Agreements; Negative Pledges.   None of the Borrowers or the Non-Borrower
Subsidiaries shall, directly or indirectly, enter into any Contractual
Obligation (other than this Agreement, any other Loan Document or the Senior Subordinated
Debt Documents) that limits the ability (a) of any Subsidiary (other than the
Excluded Subsidiaries or the Insurance Subsidiary) to make Restricted Payments
to the Parent or to otherwise transfer property to the Parent, or (b) of any of
the Borrowers or Non-Borrower Subsidiaries (other than the Insurance
Subsidiary) to create, incur, assume or suffer to exist Liens in favor of the
Administrative Agent on property of such Person; provided, however,
that this clause (ii) shall not prohibit any negative pledge incurred or
provided in favor of any holder of Indebtedness permitted under Section
7.03(e) hereof solely to the extent any such negative pledge relates to the
property financed by or the subject of such Indebtedness.

 

7.10                        Use
of Proceeds.   None of the Borrowers shall use the proceeds
of any Credit Extension, whether directly or indirectly, and whether
immediately, incidentally or ultimately, to purchase or carry margin stock
(within the meaning of Regulation U of the FRB), except as set forth in section
5.04 (provided it is not in violation of Regulation U of the FRB), or to
extend credit to others for the purpose of purchasing or carrying margin stock
or to refund indebtedness originally incurred for such purpose or for any
purpose other than as set forth in Section 5.04 hereof.

 

7.11                        Financial Covenants.

 

For the avoidance of doubt,
notwithstanding anything to the contrary in the Agreement, it is understood
that the following financial covenants shall be calculated exclusive of the
assets, liabilities (except for liabilities of the Excluded Subsidiaries that
are recourse to the Borrowers), net worth and operations of the Excluded
Subsidiaries.

 

(a)                                  Interest Coverage Ratio.  As
at the end of any fiscal quarter, the Borrowers shall not permit the ratio of
(a) Consolidated EBITDA for the period of four (4) consecutive fiscal quarters
then ending to (b) Consolidated Total Interest Expense for such period to be
less than 2.75:1.00.

 

(b)                                 Consolidated Total Funded Debt to
Consolidated EBITDA.  As at the end of any fiscal quarter, the
Borrowers shall not permit the ratio of (a) Consolidated Total Funded Debt as
of such date to (b) Consolidated EBITDA for the period of four (4) consecutive
fiscal quarters then ending to exceed 4.75:1.00.

 

(c)                                  Consolidated Senior Funded Debt to
Consolidated EBITDA.  As at the end of any fiscal quarter, the
Borrowers shall not permit the ratio of (a) Consolidated Senior Funded Debt as
of such date to (b) Consolidated EBITDA for the period of four (4) consecutive
fiscal quarters then ending to exceed 3.00:1.00.

 

(d)                                 Consolidated Net Worth. The Borrowers shall not permit Consolidated
Net Worth at any time to be less than the sum of (a) $152,000,000 plus
(b) on a cumulative basis, fifty percent (50%) of positive Consolidated Adjusted
Net Income (after the payment of dividends with respect to Series A Preferred
Stock) for each fiscal quarter beginning with the fiscal quarter ended April
30, 2005, plus (c) one hundred percent (100%) of the proceeds of any
sale by the

 

77

 

Borrowers after the Closing Date of (i)
Equity Interests issued by the Borrowers (other than to a Borrower), or (ii)
warrants or subscription rights for Equity Interests issued by the Borrowers
(other than to a Borrower).  The parties
hereto agree that this covenant shall be adjusted by the Administrative Agent
upon the occurrence of any of the following events or dates, as applicable, to
account for the reduction, if any, in Consolidated Net Worth resulting from such
transaction or occurrence, as applicable: (A) the earlier to occur of (i) the
first day of the second fiscal quarter of the Borrowers commencing on or about
August 1, 2006, or (ii) the Borrowers’ redemption of the Series A Preferred
Stock, or (B) any repurchases by the Parent of its common stock as permitted
pursuant to Section 7.06 hereof, to reflect the change in
Consolidated Net Worth as a result of any such occurrence.

 

(e)                                  Capital Expenditures. 
Permit, as at the end of any fiscal year, the amount of Capital
Expenditures (excluding any Permitted Acquisitions) made by the Borrowers for
the period of 12 consecutive months then ended to exceed 1.75 multiplied by the sum of depreciation and landfill amortization expense for
such 12-month period (calculated in accordance with GAAP).

 

7.12                        Sale
and Leaseback.   None of the Borrowers or the Non-Borrower
Subsidiaries (other than the Insurance Subsidiary) shall, directly or
indirectly, enter into any arrangement, directly or indirectly, whereby any
Borrower or any such Non-Borrower Subsidiary shall sell or transfer any
property owned by it in order then or thereafter to lease such property or
lease other property which such Borrower or any such Non-Borrower Subsidiary
intends to use for substantially the same purpose as the property being sold or
transferred, without the prior written consent of the Required Lenders.

 

7.13                        No
Other Senior Debt.   None of the Borrowers or the Non-Borrower
Subsidiaries (a) have designated, or will designate, any Indebtedness of the
Borrowers or the Non-Borrower Subsidiaries as “Designated Senior Debt” for
purposes of (and as defined in) the Indenture, other than the Obligations, and
(b) have “Senior Debt” as such term is defined in the Indenture other than the
Obligations and any Indebtedness permitted under Section 7.03 which
ranks pari passu with the Obligations.

 

7.14                        Actions
Otherwise Prohibited By Subordinated Debt.   Notwithstanding anything contained in this Article
VII that permits the Borrowers or any of their Subsidiaries to enter into
transactions or take certain actions, the Borrowers shall not enter into such
transactions or take such actions if otherwise prohibited from so doing by the
terms of the Senior Subordinated Debt outstanding from time to time.

 

7.15                        Employee
Benefit Plans.   None of the Borrowers or any ERISA Affiliate
shall, directly or indirectly:

 

(a)                                  engage in any “prohibited transaction” within
the meaning of §406 of ERISA or §4975 of the Code which could result in a
material liability for any Borrower; or

 

(b)                                 permit any Guaranteed Pension Plan to incur
an “accumulated funding deficiency”, as such term is defined in §302 of ERISA,
whether or not such deficiency is or may be waived; or

 

78

 

(c)                                  fail to contribute to any Guaranteed Pension
Plan to an extent which, or terminate any Guaranteed Pension Plan in a manner
which, could result in the imposition of a lien or encumbrance on the assets of
any Borrower pursuant to §302(f) or §4068 of ERISA; or

 

(d)                                 amend any Guaranteed Pension Plan in
circumstances requiring the posting of security pursuant to §307 of ERISA or
§401(a)(29) of the Code; or

 

(e)                                  permit or take any action which would result
in the aggregate benefit liabilities (with the meaning of §4001 of ERISA) of
all Guaranteed Pension Plans exceeding the value of the aggregate assets of
such Plans, disregarding for this purpose the benefit liabilities and assets of
any such Plan with assets in excess of benefit liabilities.

 

The Borrowers will (i)
promptly upon filing the same with the Department of Labor or Internal Revenue
Service, furnish to the Lenders a copy of the most recent actuarial statement
required to be submitted under §103(d) of ERISA and Annual Report, Form 5500,
with all required attachments, in respect of each Guaranteed Pension Plan and
(ii) promptly upon receipt or dispatch, furnish to the Lenders any notice,
report or demand sent or received in respect of a Guaranteed Pension Plan under
§§302, 4041, 4042, 4043, 4063, 4065, 4066 and 4068 of ERISA, or in respect of a
Multiemployer Plan, under §§4041A, 4202, 4219, or 4245 of ERISA.

 

7.16                        Prepayments
of Certain Obligations; Modifications of Subordinated Debt.   None of the
Borrowers or the Non-Borrower Subsidiaries shall, directly or indirectly, (a)
amend, supplement or otherwise modify the terms of any Subordinated Debt; provided,
that the Borrowers may amend, supplement or otherwise modify the terms of any
Seller Subordinated Debt with the consent of the Administrative Agent if, in
the judgment of the Administrative Agent, such amendments, supplements or
modifications do not adversely effect the rights of the Lenders, (b) prepay,
redeem or repurchase or issue any notice or offer of redemption with respect
to, elect to make, or effect, a defeasance with respect to, or take any other
action which would require the Borrowers or any of their Subsidiaries to,
prepay, redeem or repurchase any of the Subordinated Debt, (c) make any
payments with respect to any Seller Subordinated Debt other than scheduled
payments of principal and interest as and to the extent permitted under the
applicable Subordination Agreements, provided that no Default or Event
of Default shall have occurred or be continuing on the date of such payment,
nor would be created by the making of such payment, or (d) make any payments
with respect to any Senior Subordinated Debt other than (i) scheduled payments
of interest as and to the extent permitted under the Indenture or (ii) payments
of principal made from the proceeds of equity offerings after the Closing Date,
provided, in each case, that no Default or Event of Default shall have
occurred or be continuing on the date of such payment, nor would be created by
the making of such payment.

 

7.17                        Upstream
Limitations.   None of the
Borrowers shall enter into any agreement, contract or arrangement (excluding
this Agreement, the other Loan Documents and the Indenture) restricting the
ability of (i) the Borrowers to amend or modify this Agreement or any other
Loan Document, or (ii) any Borrower to pay or make dividends or distributions
in cash or kind to any Borrower or to make loans, advances or other payments of
whatsoever nature to any Borrower or to make transfers or distributions of all
or any part of such Borrower’s assets to a Borrower; in each case other than
(x) restrictions on specific assets which assets are the subject

 

79

 

of purchase money security interests to the extent permitted under Section
7.03(e), and (y) customary anti-assignment provisions contained in leases
and licensing agreements entered into by such Borrower in the ordinary course
of its business.

 

ARTICLE VIII.

EVENTS OF DEFAULT AND REMEDIES

 

8.01                        Events
of Default.   If any of
the following events (“Events of Default”) shall occur:

 

(a)                                  if the Borrowers shall fail to pay any
principal of the Loans or any L/C Obligation hereunder when the same shall
become due and payable, whether at the Maturity Date or any accelerated date of
maturity or at any other date fixed for payment;

 

(b)                                 if the Borrowers shall fail to pay any
interest or fees or other amounts owing hereunder within five (5) Business Days
after the same shall become due and payable whether at the Maturity Date or any
accelerated date of maturity or at any other date fixed for payment;

 

(c)                                  if the Borrowers shall fail to comply with
any of the covenants contained in Sections 6.01, 6.04, 6.05,
6.10, 6.11, 6.13, 6.15, 6.19 or Article
VII hereof;

 

(d)                                 if the Borrowers shall fail to perform any
term, covenant or agreement contained herein or in any of the other Loan
Documents (other than those specified in subsections (a), (b), and (c) above)
within thirty (30) days after written notice of such failure has been given to
the Borrowers by the Lenders;

 

(e)                                  if any representation or warranty contained
in this Agreement or in any document or instrument delivered pursuant to or in
connection with this Agreement shall prove to have been false in any material
respect upon the date when made or repeated;

 

(f)                                    if any Borrower or Non-Borrower Subsidiary
shall fail to pay at maturity, or within any applicable period of grace, any
and all obligations for borrowed money or any guaranty with respect thereto or
credit received or in respect of any Capitalized Leases, Synthetic Leases or Swap
Contracts, in each case, in an aggregate amount greater than the Threshold
Amount (including, without limitation, the Indebtedness evidenced by the
Indenture), or fail to observe or perform any material term, covenant or
agreement contained in any agreement by which it is bound, evidencing or
securing borrowed money or credit received or in respect of any Capitalized
Leases in an aggregate amount greater than the Threshold Amount (including,
without limitation, the Indenture) for such period of time as would permit,
assuming the giving of appropriate notice if required, the holder or holders
thereof or of any obligations issued thereunder to accelerate the maturity
thereof;

 

(g)                                 if any Borrower or Non-Borrower Subsidiary
makes an assignment for the benefit of creditors, or admits in writing its
inability to pay or generally fails to pay its debts as they mature or become
due, or petitions or applies for the appointment of a

 

80

 

trustee or other custodian,
liquidator, receiver or receiver/manager of any Borrower or Non-Borrower
Subsidiary or of any substantial part of the assets of any Borrower or
Non-Borrower Subsidiary or commences any case or other proceeding relating to
any Borrower or Non-Borrower Subsidiary under any bankruptcy, reorganization,
arrangement, insolvency, readjustment of debt, dissolution or liquidation or
similar law of any jurisdiction, now or hereafter in effect, or takes any
action to authorize or in furtherance of any of the foregoing, or if any such
petition or application is filed or any such case or other proceeding is
commenced against any Borrower or Non-Borrower Subsidiary and any Borrower or
Non-Borrower Subsidiary indicates its approval thereof, consent thereto or
acquiescence therein;

 

(h)                                 a decree or order is entered appointing any
such trustee, custodian, liquidator, receiver or receiver/manager or
adjudicating any Borrower or Non-Borrower Subsidiary bankrupt or insolvent, or
approving a petition in any such case or other proceeding, or a decree or order
for relief is entered in respect of any Borrower or Non-Borrower Subsidiary in
an involuntary case under federal bankruptcy laws as now or hereafter
constituted, and such decree or order remains in effect for more than sixty (60)
days, whether or not consecutive;

 

(i)                                     if there shall remain in force, undischarged,
unsatisfied and unstayed, for more than forty-five (45) days, whether or not
consecutive, any final judgment against any Borrower or Non-Borrower Subsidiary
which, with other outstanding final judgments, against the Borrowers and
Non-Borrower Subsidiaries exceeds in the aggregate the Threshold Amount after
taking into account any undisputed insurance coverage;

 

(j)                                     any Borrower or Non-Borrower Subsidiary or
any ERISA Affiliate incurs any liability to the PBGC or similar Canadian
authorities or a Guaranteed Pension Plan (or any corresponding plan described
in any Applicable Canadian Pension Legislation) pursuant to Title IV of ERISA
in an aggregate amount exceeding the Threshold Amount, or any Borrower or
Non-Borrower Subsidiary or any ERISA Affiliate is assessed withdrawal liability
pursuant to Title IV of ERISA by a Multiemployer Plan requiring aggregate
annual payments exceeding the Threshold Amount, or any of the following occurs
with respect to a Guaranteed Pension Plan (or any corresponding plan described
in any Applicable Canadian Pension Legislation): (i) an ERISA Reportable
Event or similar event under Applicable Canadian Pension Legislation, or a
failure to make a required installment or other payment (within the meaning of
§302(f)(1) of ERISA), provided that the
Administrative Agent determines in its reasonable discretion that such event
(A) could be expected to result in liability of any Borrower or
Non-Borrower Subsidiary to the PBGC, similar Canadian authorities or such Plan
in an aggregate amount exceeding the Threshold Amount and (B) could
constitute grounds for the termination of such Plan by the PBGC or similar
Canadian authorities, for the appointment by the appropriate United States
District Court or Canadian Court of a trustee to administer such Plan or for
the imposition of a lien in favor of such Plan; or (ii) the appointment by
a United States District Court or Canadian Court of a trustee to administer such
Plan; or (iii) the institution by the PBGC or similar Canadian authorities
of proceedings to terminate such Plan;

 

81

 

(k)                                  if any of the Loan Documents shall be
cancelled, terminated, revoked or rescinded otherwise than in accordance with
the terms thereof or with the express prior written agreement, consent or
approval of the Lenders, or any action at law, suit or in equity or other legal
proceeding to cancel, revoke or rescind any of the Loan Documents shall be
commenced by or on behalf of the Borrowers or any of their respective
stockholders, or any court or any other governmental or regulatory authority or
agency of competent jurisdiction shall make a determination that, or issue a
judgment, order, decree or ruling to the effect that, any one or more of the
Loan Documents is illegal, invalid or unenforceable in accordance with the
terms thereof;

 

(l)                                     any Person or group of Persons (within the
meaning of Section 13 or 14 of the Securities Exchange Act of 1934, as amended)
shall have acquired beneficial ownership (within the meaning of Rule 13d-3
promulgated by the Securities and Exchange Commission under said Act) of 25% or
more of the outstanding shares of common stock of the Parent (other than
Berkshire Partners LLC); or, during any period of twelve consecutive calendar
months, individuals who were directors of the Parent on the first day of such
period shall cease to constitute a majority of the board of directors of the
Parent;

 

(m)                               a “Change of
Control” as defined in the Series A Certificate shall occur; or

 

(n)                                 a “Change of
Control” as defined in the Indenture or other Senior Subordinated Debt
Document shall occur;

 

then, and in any such event,
so long as the same may be continuing, the Administrative Agent shall upon the
request of the Required Lenders, by notice in writing to the Borrowers, declare
all amounts owing with respect to this Agreement and the other Loan Documents
to be, and they shall thereupon forthwith become, immediately due and payable
without presentment, demand, protest or other notice of any kind, all of which
are hereby expressly waived by the Borrowers; provided that in the event
of any Event of Default specified in Section 8.01(g) or (h), all
such amounts shall become immediately due and payable automatically and without
any requirement of notice from the Administrative Agent or any Lender.

 

8.02                        Remedies
Upon Event of Default.   If any Event of Default occurs and is
continuing, the Administrative Agent shall, at the request of, or may, with the
consent of, the Required Lenders, take any or all of the following actions:

 

(a)                                  declare the commitment of each Lender to make
Loans and any obligation of the L/C Issuer to make L/C Credit Extensions to be
terminated, whereupon such commitments and obligation shall be terminated;

 

(b)                                 declare the unpaid principal amount of all
outstanding Loans, all interest accrued and unpaid thereon, and all other
amounts owing or payable hereunder or under any other Loan Document to be
immediately due and payable, without presentment, demand, protest or other
notice of any kind, all of which are hereby expressly waived by the Borrower;

 

(c)                                  require that the Borrowers Cash Collateralize
the L/C Obligations (in an amount equal to the then Outstanding Amount thereof);
and

 

82

 

(d)                                 exercise on behalf of itself and the Lenders
all rights and remedies available to it and the Lenders under the Loan
Documents;

 

provided, however, that upon the occurrence of
an actual or deemed entry of an order for relief with respect to the Borrowers
under the Bankruptcy Code of the United States, the obligation of each Lender
to make Loans and any obligation of the L/C Issuer to make L/C Credit
Extensions shall automatically terminate, the unpaid principal amount of all
outstanding Loans and all interest and other amounts as aforesaid shall
automatically become due and payable, and the obligation of the Borrowers to
Cash Collateralize the L/C Obligations as aforesaid shall automatically become
effective, in each case without further act of the Administrative Agent or any
Lender.

 

8.03                        Application
of Funds.   After the
exercise of remedies provided for in Section 8.02 (or after the Loans
have automatically become immediately due and payable and the L/C Obligations
have automatically been required to be Cash Collateralized as set forth in the
proviso to Section 8.02), any amounts received on account of the
Obligations shall be applied by the Administrative Agent in the following
order:

 

First, to the payment of, or (as the case may be)
the reimbursement of the Administrative Agent for or in respect of all
reasonable costs, expenses, disbursements and losses which shall have been
incurred or sustained by the Administrative Agent in connection with the
collection of such monies by the Administrative Agent, for the exercise,
protection or enforcement by the Administrative Agent of all or any of the
rights, remedies, powers and privileges of the Administrative Agent under this
Agreement or any of the other Loan Documents or in respect of the Collateral or
in support of any provision of adequate indemnity to the Administrative Agent
against any taxes or liens which by law shall have, or may have, priority over
the rights of the Administrative Agent to such monies;

 

Second, to all other Obligations pari passu among
the Administrative Agent and the Lenders; provided, however, that
(i) distributions shall be made with respect to each type of Obligation owing
to the Lenders, such as interest, principal, fees and expenses, among the
Lenders on a pro rata basis, and (ii) the Administrative Agent shall
make proper allowance to take into account any L/C Obligations not then due and
payable;

 

Third, upon payment and satisfaction in full or
other provisions for payment in full satisfactory to the Lenders and the
Administrative Agent of all of the Obligations, to the payment of any
obligations required to be paid pursuant to §9-608(a)(1)(C) or 9-615(a)(3) of
the Uniform Commercial Code of the Commonwealth of Massachusetts; and

 

Fourth, the excess, if any, after all Obligations
have been indefeasibly paid in full, shall be returned to the Borrowers or to
such other Persons as are entitled thereto.

 

Subject to Section 2.03(c), any
amounts used to Cash Collateralize the aggregate Maximum Drawing Amount shall
be applied to satisfy drawings under such Letters of Credit as they occur.  If any amount remains on deposit as Cash
Collateral after all Letters of Credit have either been

 

83

 

fully drawn or expired, such remaining amount
shall be applied to the other Obligations, if any, in the order set forth
above.

 

ARTICLE IX.

ADMINISTRATIVE AGENT

 

9.01                        Appointment
and Authority.   Each of the
Lenders and the L/C Issuer hereby irrevocably appoints Bank of America to act
on its behalf as the Administrative Agent hereunder and under the other Loan
Documents and authorizes the Administrative Agent to take such actions on its
behalf and to exercise such powers as are delegated to the Administrative Agent
by the terms hereof or thereof, together with such actions and powers as are
reasonably incidental thereto.  The
provisions of this Article are solely for the benefit of the Administrative Agent,
the Lenders and the L/C Issuer, and the Borrowers shall not have rights as a
third party beneficiary of any of such provisions.

 

9.02                        Rights
as a Lender.   The Person
serving as the Administrative Agent hereunder shall have the same rights and
powers in its capacity as a Lender as any other Lender and may exercise the
same as though it were not the Administrative Agent and the term “Lender” or “Lenders”
shall, unless otherwise expressly indicated or unless the context otherwise
requires, include the Person serving as the Administrative Agent hereunder in
its individual capacity.  Such Person and
its Affiliates may accept deposits from, lend money to, act as the financial
advisor or in any other advisory capacity for and generally engage in any kind
of business with the Borrowers or any Affiliate thereof as if such Person were
not the Administrative Agent hereunder and without any duty to account therefor
to the Lenders.

 

9.03                        Exculpatory
Provisions.   The
Administrative Agent shall not have any duties or obligations except those
expressly set forth herein and in the other Loan Documents.  Without limiting the generality of the
foregoing, the Administrative Agent:

 

(a)                                  shall not be subject to any fiduciary or
other implied duties, regardless of whether a Default has occurred and is
continuing;

 

(b)                                 shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby or by the other Loan Documents
that the Administrative Agent is required to exercise as directed in writing by
the Required Lenders (or such other number or percentage of the Lenders as
shall be expressly provided for herein or in the other Loan Documents), provided
that the Administrative Agent shall not be required to take any action that, in
its opinion or the opinion of its counsel, may expose the Administrative Agent
to liability or that is contrary to any Loan Document or law; and

 

(c)                                  shall not, except as expressly set forth
herein and in the other Loan Documents, have any duty to disclose, and shall
not be liable for the failure to disclose, any information relating to the
Borrowers or any of their Affiliates that is communicated to or obtained by the
Person serving as the Administrative Agent or any of its Affiliates in any
capacity.

 

84

 

The Administrative Agent
shall not be liable to the Lenders for any action taken or not taken by it (i)
with the consent or at the request of the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary, or as the
Administrative Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Sections 10.01 and 8.02) or (ii) in
the absence of its own gross negligence or willful misconduct.  The Administrative Agent shall be deemed not
to have knowledge of any Default unless and until notice describing such
Default is given to the Administrative Agent by the Borrowers, a Lender or the
L/C Issuer.

 

The Administrative Agent
shall not be responsible for or have any duty to ascertain or inquire into (i)
any statement, warranty or representation made in or in connection with this
Agreement or any other Loan Document, (ii) the contents of any certificate,
report or other document delivered hereunder or thereunder or in connection
herewith or therewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth herein or therein
or the occurrence of any Default, (iv) the validity, enforceability, effectiveness
or genuineness of this Agreement, any other Loan Document or any other
agreement, instrument or document or (v) the satisfaction of any condition set
forth in Article IV or elsewhere herein, other than to confirm receipt
of items expressly required to be delivered to the Administrative Agent.

 

9.04                        Reliance
by Administrative Agent.   The
Administrative Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing (including any electronic
message, Internet or intranet website posting or other distribution) believed
by it to be genuine and to have been signed, sent or otherwise authenticated by
the proper Person.  The Administrative
Agent also may rely upon any statement made to it orally or by telephone and
believed by it to have been made by the proper Person, and shall not incur any
liability for relying thereon.  In
determining compliance with any condition hereunder to the making of a Loan, or
the issuance of a Letter of Credit, that by its terms must be fulfilled to the
satisfaction of a Lender or the L/C Issuer, the Administrative Agent may
presume that such condition is satisfactory to such Lender or the L/C Issuer
unless the Administrative Agent shall have received notice to the contrary from
such Lender or the L/C Issuer prior to the making of such Loan or the issuance
of such Letter of Credit.  The
Administrative Agent may consult with legal counsel (who may be counsel for the
Borrowers), independent accountants and other experts selected by it, and shall
not be liable for any action taken or not taken by it in accordance with the
advice of any such counsel, accountants or experts.

 

9.05                        Delegation
of Duties.   The
Administrative Agent may perform any and all of its duties and exercise its
rights and powers hereunder or under any other Loan Document by or through any
one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such sub-agent
may perform any and all of its duties and exercise its rights and powers by or
through their respective Related Parties. 
The exculpatory provisions of this Article shall apply to any such sub-agent
and to the Related Parties of the Administrative Agent and any such sub-agent,
and shall apply to their respective activities in connection with the
syndication of the credit facilities provided for herein as well as activities
as Administrative Agent.

 

9.06                        Resignation
of Administrative Agent.   The
Administrative Agent may resign at any time by giving sixty (60) days’ prior
written notice thereof to the Lenders and the Borrowers.

 

85

 

Upon any such resignation, the Required Lenders shall have the right to
appoint a successor Administrative Agent. 
If no successor Administrative Agent shall have been so appointed by the
Required Lenders and shall have accepted such appointment within thirty (30)
days after the retiring Administrative Agent’s giving of notice of resignation,
then the retiring Administrative Agent may, on behalf of the Lenders, appoint a
successor Lender Agent, which shall be a financial institution which shall be a
financial institution having a rating of not less than “A” or its equivalent by
S&P.  Upon the acceptance of any
appointment as Administrative Agent hereunder by a successor Administrative
Agent, such successor Administrative Agent shall thereupon succeed to and
become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent, and the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder.  After any retiring Administrative Agent’s
resignation, the provisions of this Agreement shall continue in effect for its
benefit in respect of any actions taken or omitted to be taken by it while it
was acting as Administrative Agent.  Any
new Administrative Agent appointed pursuant to this Section shall immediately
issue new Letters of Credit in place of Letters of Credit previously issued by
the resigning Administrative Agent, or otherwise make arrangements to Cash
Collateralize or to provide a backing Letter of Credit to the satisfaction of
the resigning Administrative Agent.

 

9.07                        Non-Reliance
on Administrative Agent and Other Lenders.   Each Lender and the L/C Issuer
acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender or any of their Related Parties and
based on such documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement.  Each Lender and the L/C Issuer also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender or any of their Related Parties and
based on such documents and information as it shall from time to time deem
appropriate, continue to make its own decisions in taking or not taking action
under or based upon this Agreement, any other Loan Document or any related
agreement or any document furnished hereunder or thereunder.

 

9.08                        No
Other Duties, Etc.   Anything
herein to the contrary notwithstanding, none of the Bookrunners or Arranger
listed on the cover page hereof shall have any powers, duties or
responsibilities under this Agreement or any of the other Loan Documents,
except in its capacity, as applicable, as the Administrative Agent, a Lender or
the L/C Issuer hereunder.

 

9.09                        Administrative
Agent May File Proofs of Claim.   In case of
the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to any Borrower, the Administrative Agent (irrespective of
whether the principal of any Loan or L/C Obligation shall then be due and
payable as herein expressed or by declaration or otherwise and irrespective of
whether the Administrative Agent shall have made any demand on the Borrower)
shall be entitled and empowered, by intervention in such proceeding or
otherwise

 

(a)                                  to file and prove a claim for the whole
amount of the principal and interest owing and unpaid in respect of the Loans,
L/C Obligations and all other Obligations that are owing and unpaid and to file
such other documents as may be necessary or advisable in order to have the
claims of the Lenders, the L/C Issuer and the Administrative Agent (including
any claim for the reasonable compensation, expenses, disbursements and

 

86

 

advances of the Lenders, the
L/C Issuer and the Administrative Agent and their respective agents and counsel
and all other amounts due the Lenders, the L/C Issuer and the Administrative
Agent under Sections 2.03, 2.09 and 10.04) allowed in such
judicial proceeding; and

 

(b)                                 to collect and receive any monies or other
property payable or deliverable on any such claims and to distribute the same;

 

and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such
judicial proceeding is hereby authorized by each Lender and the L/C Issuer to
make such payments to the Administrative Agent and, in the event that the
Administrative Agent shall consent to the making of such payments directly to
the Lenders and the L/C Issuer, to pay to the Administrative Agent any amount
due for the reasonable compensation, expenses, disbursements and advances of
the Administrative Agent and its agents and counsel, and any other amounts due
the Administrative Agent under Sections 2.09 and 10.04.

 

Nothing contained herein
shall be deemed to authorize the Administrative Agent to authorize or consent
to or accept or adopt on behalf of any Lender or the L/C Issuer any plan of
reorganization, arrangement, adjustment or composition affecting the
Obligations or the rights of any Lender or to authorize the Administrative
Agent to vote in respect of the claim of any Lender in any such proceeding.

 

9.10                        Collateral
Matters.   The Lenders
and the L/C Issuer irrevocably authorize the Administrative Agent,

 

(a)                                  to release any Lien on any property granted
to or held by the Administrative Agent under any Loan Document (i) upon
termination of the Aggregate Commitments and payment in full of all Obligations
(other than contingent indemnification obligations) and the expiration or
termination of all Letters of Credit, (ii) that is sold or to be sold as part
of or in connection with any sale permitted hereunder or under any other Loan
Document, or (iii) subject to Section 10.01, if approved, authorized or
ratified in writing by the Required Lenders;

 

(b)                                 to subordinate any Lien on any property
granted to or held by the Administrative Agent under any Loan Document to the
holder of any Lien on such property that is permitted by Section 7.01(a);

 

(c)                                  to release any Borrower from its Obligations
hereunder if such Person ceases to be a Subsidiary as a result of a transaction
permitted hereunder.

 

Upon request by the
Administrative Agent at any time, the Required Lenders will confirm in writing
the Administrative Agent’s authority to release or subordinate its interest in
particular types or items of property or to release a Borrower or its property
from its obligations hereunder pursuant to this Section; provided, however,
that such confirmation shall not be a condition to such release.

 

87

 

ARTICLE X.

MISCELLANEOUS

 

10.01                 Amendments,
Etc.   No
amendment or waiver of any provision of this Agreement or any other Loan
Document, and no consent to any departure by any Borrower therefrom, shall be
effective unless in writing signed by the Required Lenders and the Borrowers or
applicable Borrower, as the case may be, and acknowledged by the Administrative
Agent, and each such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given; provided, however,
that no such amendment, waiver or consent shall:

 

(a)                                  waive any condition set forth in Section
4.01(a) without the written consent of each Lender;

 

(b)                                 extend or increase the Commitment of any
Lender (or reinstate any Commitment terminated pursuant to Section 8.02)
without the written consent of such Lender;

 

(c)                                  postpone any date fixed by this Agreement or
any other Loan Document for any payment or mandatory prepayment of principal,
interest, fees or other amounts due to the Lenders (or any of them) or any
scheduled or mandatory reduction of the Aggregate Commitments hereunder or
under any other Loan Document without the written consent of each Lender
directly affected thereby (it being understood that any vote to rescind any
acceleration of amounts owing with respect to the Loans and other Obligations
shall only require the approval of the Required Lenders);

 

(d)                                 reduce the principal of, or the rate of
interest specified herein on, any Loan or L/C Borrowing, or (subject to clause
(v) of the second proviso to this Section 10.01) any fees or other
amounts payable hereunder or under any other Loan Document, without
the written consent of each Lender directly affected thereby; provided, however,
that only the consent of the Required Lenders shall be necessary (i) to amend
the definition of “Default Rate” or to waive any obligation of any of the
Borrowers to pay interest or Letter of Credit Fees at the Default Rate or (ii)
to amend any financial covenant hereunder (or any defined term used therein)
even if the effect of such amendment would be to reduce the rate of interest on
any Loan or L/C Borrowing or to reduce any fee payable hereunder;

 

(e)                                  change Section 2.13, section 2.14
or Section 8.03 in a manner that would alter the pro rata sharing of
payments required thereby without the written consent of each Lender;

 

(f)                                    change any provision of this Section or the
definition of “Required Lenders” or any other provision hereof specifying the
number or percentage of Lenders required to amend, waive or otherwise modify
any rights hereunder or make any determination or grant any consent hereunder
without the written consent of each Lender; and

 

(g)                                 other than pursuant to a transaction
permitted by the terms of this Agreement, release (A) all or substantially all
of the Collateral (excluding, if any Borrower
becomes a debtor under the federal Bankruptcy Code, the release of “cash
collateral”, as defined in Section 363(a) of the federal Bankruptcy Code
pursuant to a cash collateral stipulation with the debtor approved by the
Required Lenders) or (B) any Borrower from its Obligations.

 

88

 

and, provided  further,
that (i) no amendment, waiver or consent shall, unless in writing and signed by
the L/C Issuer in addition to the Lenders required above, affect the rights or
duties of the L/C Issuer under this Agreement or any Issuer Document relating
to any Letter of Credit issued or to be issued by it; (ii) no amendment, waiver
or consent shall, unless in writing and signed by the Swing Line Lender in
addition to the Lenders required above, affect the rights or duties of the
Swing Line Lender under this Agreement; (iii) no amendment, waiver or consent
shall, unless in writing and signed by the Administrative Agent in addition to the
Lenders required above, affect the rights or duties of the Administrative Agent
under this Agreement or any other Loan Document; (iv) Section 10.06(h)
may not be amended, waived or otherwise modified without the consent of each
Granting Lender all or any part of whose Loans are being funded by an SPC at
the time of such amendment, waiver or other modification; and (v) the Fee
Letter may be amended, or rights or privileges thereunder waived, in a writing
executed only by the parties thereto. 
Notwithstanding anything to the contrary herein, no Defaulting Lender
shall have any right to approve or disapprove any amendment, waiver or consent
hereunder, except that the Commitment of such Lender may not be increased or
extended without the consent of such Lender.

 

10.02                 Notices; Effectiveness; Electronic
Communication.

 

(a)                                  Notices Generally. 
Except in the case of notices and other communications expressly
permitted to be given by telephone (and except as provided in subsection (b)
below), all notices and other communications provided for herein shall be in
writing and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by telecopier as follows, and all notices
and other communications expressly permitted hereunder to be given by telephone
shall be made to the applicable telephone number, as follows:

 

(i)                                     if to the Borrowers, the Administrative
Agent, the L/C Issuer or the Swing Line Lender, to the address, telecopier
number, electronic mail address or telephone number specified for such Person
on Schedule 10.02; and

 

(ii)                                  if to any other Lender, to the address,
telecopier number, electronic mail address or telephone number specified in its
Administrative Questionnaire.

 

Notices sent by hand or overnight courier
service, or mailed by certified or registered mail, shall be deemed to have
been given when received; notices sent by telecopier shall be deemed to have
been given when sent (except that, if not given during normal business hours
for the recipient, shall be deemed to have been given at the opening of
business on the next business day for the recipient).  Notices delivered through electronic
communications to the extent provided in subsection (b) below, shall be effective
as provided in such subsection (b).

 

(b)                                 Electronic Communications. 
Notices and other communications to the Lenders and the L/C Issuer
hereunder may be delivered or furnished by electronic communication (including
e-mail and Internet or intranet websites) pursuant to procedures approved by
the Administrative Agent, provided that the foregoing shall not apply to
notices to any Lender or the L/C Issuer pursuant to Article II if such
Lender or the L/C Issuer, as applicable, has notified the Administrative Agent
that it is incapable of receiving notices under such Article by electronic
communication.  The Administrative Agent
or the Borrowers may, in their discretion, agree to 

 

89

 

accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it, provided
that approval of such procedures may be limited to particular notices or
communications.

 

Unless the Administrative
Agent otherwise prescribes, (i) notices and other communications sent to an
e-mail address shall be deemed received upon the sender’s receipt of an
acknowledgement from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other written
acknowledgement), provided that if such notice or other communication is
not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on
the next business day for the recipient, and (ii) notices or communications
posted to an Internet or intranet website shall be deemed received upon the
deemed receipt by the intended recipient at its e-mail address as described in
the foregoing clause (i) of notification that such notice or communication
is available and identifying the website address therefor.

 

(c)                                  The Platform.  THE
PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.”  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT
WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY
OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS
FROM THE BORROWER MATERIALS.  NO WARRANTY
OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD
PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY
AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM.  In no event shall the Administrative Agent or
any of its Related Parties (collectively, the “Agent Parties”) have any liability
to the Borrowers, the Excluded Subsidiaries, any Lender, the L/C Issuer or any
other Person for losses, claims, damages, liabilities or expenses of any kind
(whether in tort, contract or otherwise) arising out of the Borrowers’ or the
Administrative Agent’s transmission of Borrowers Materials through the
Internet, except to the extent that such losses, claims, damages, liabilities
or expenses are determined by a court of competent jurisdiction by a final and
nonappealable judgment to have resulted from the gross negligence, breach in
bad faith of the Administrative Agent’s obligations under this subsection (c)
or willful misconduct of such Agent Party; provided, however,
that in no event shall any Agent Party have any liability to the Borrowers, the
Excluded Subsidiaries, any Lender, the L/C Issuer or any other Person for
indirect, special, incidental, consequential or punitive damages (as opposed to
direct or actual damages).

 

(d)                                 Change of Address, Etc.  Each
of the Administrative Agent, the L/C Issuer, the Swing Line Lender and each of
the Borrowers may change its address, telecopier or telephone number for
notices and other communications hereunder by notice to the other parties
hereto.  Each other Lender may change its
address, telecopier or telephone number for notices and other communications
hereunder by notice to the Borrowers, the Administrative Agent, the L/C Issuer
and the Swing Line Lender.  In addition,
each Lender agrees to notify the Administrative Agent from time to time to
ensure that the Administrative Agent has on record (i) an effective address,
contact name, telephone number, telecopier number and electronic mail address
to which notices and other communications may be sent and (ii) accurate wire
instructions for such Lender.

 

90

 

(e)                                  Reliance by Administrative Agent, L/C Issuer
and Lenders.  The Administrative
Agent, the L/C Issuer and the Lenders shall be entitled to rely and act upon
any notices (including telephonic Committed Loan Notices and Swing Line Loan
Notices) purportedly given by or on behalf of the Borrowers even if (i) such
notices were not made in a manner specified herein, were incomplete or were not
preceded or followed by any other form of notice specified herein, or (ii) the
terms thereof, as understood by the recipient, varied from any confirmation
thereof.  The Borrowers, jointly and
severally, shall indemnify the Administrative Agent, the L/C Issuer, each
Lender and the Related Parties of each of them from all losses, costs, expenses
and liabilities resulting from the reliance by such Person on each notice
purportedly given by or on behalf of the Borrowers.  All telephonic notices to and other
telephonic communications with the Administrative Agent may be recorded by the
Administrative Agent, and each of the parties hereto hereby consents to such
recording.

 

10.03                 No
Waiver; Cumulative Remedies.   No failure
by any Lender, the L/C Issuer or the Administrative Agent to exercise, and no
delay by any such Person in exercising, any right, remedy, power or privilege
hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power
or privilege.  The rights, remedies,
powers and privileges herein provided are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law.

 

10.04                 Expenses; Indemnity; Damage Waiver.

 

(a)                                  Costs and Expenses.  The
Borrowers shall pay (i) all reasonable out-of-pocket expenses incurred by
the Administrative Agent and its Affiliates (including the reasonable fees,
charges and disbursements of counsel for the Administrative Agent), in
connection with the syndication of the credit facilities provided for herein,
the preparation, negotiation, execution, delivery and administration of this
Agreement and the other Loan Documents or any amendments, modifications or
waivers of the provisions hereof or thereof (whether or not the transactions
contemplated hereby or thereby shall be consummated), (ii) all reasonable
out-of-pocket expenses incurred by the L/C Issuer in connection with the
issuance, amendment, renewal or extension of any Letter of Credit or any demand
for payment thereunder and (iii) all out-of-pocket expenses incurred by
the Administrative Agent, any Lender or the L/C Issuer (including the fees,
charges and disbursements of any counsel for the Administrative Agent, any
Lender or the L/C Issuer), and shall pay all fees and time charges for
attorneys who may be employees of the Administrative Agent, any Lender or the
L/C Issuer, in connection with the enforcement or protection of its rights
(A) in connection with this Agreement and the other Loan Documents,
including its rights under this Section, or (B) in connection with the
Loans made or Letters of Credit issued hereunder, including all such out-of-pocket
expenses incurred during any workout, restructuring or negotiations in respect
of such Loans or Letters of Credit.

 

(b)                                 Indemnification by the Borrowers.  The
Borrowers, jointly and severally, shall indemnify the Administrative Agent (and
any sub-agent thereof), each Lender and the L/C Issuer, and each Related Party
of any of the foregoing Persons (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses (including the fees, charges and
disbursements of any counsel for any Indemnitee), and shall indemnify and hold
harmless each Indemnitee from all

 

91

 

fees and time charges and disbursements for
attorneys who may be employees of any Indemnitee, incurred by any Indemnitee or
asserted against any Indemnitee arising out of, in connection with, or as a
result of (i) the execution or delivery of this Agreement, any other Loan
Document or any agreement or instrument contemplated hereby or thereby, the
performance by the parties hereto of their respective obligations hereunder or
thereunder, the consummation of the transactions contemplated hereby or
thereby, or, in the case of the Administrative Agent (and any sub-agent
thereof) and its Related Parties only, the administration of this Agreement and
the other Loan Documents, (ii) any Loan or Letter of Credit or the use or
proposed use of the proceeds therefrom (including any refusal by the L/C Issuer
to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms
of such Letter of Credit), (iii) any actual or alleged presence or release
of Hazardous Materials on or from any property owned or operated by any of the
Borrowers, or any Environmental Liability related in any way to any of the
Borrowers, or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory, and regardless of whether any Indemnitee is
a party thereto; provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses (x) are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of such Indemnitee or (y) result
from a claim brought by any of the Borrowers against an Indemnitee for breach
in bad faith of such Indemnitee’s obligations hereunder or under any other Loan
Document, if such Borrower has obtained a final and nonappealable judgment in
its favor on such claim as determined by a court of competent jurisdiction.

 

(c)                                  Reimbursement by Lenders.  To
the extent that the Borrowers for any reason fail to indefeasibly pay any amount
required under subsection (a) or (b) of this Section to be paid by it
to the Administrative Agent (or any sub-agent thereof), the L/C Issuer or any
Related Party of any of the foregoing, each Lender severally agrees to pay to
the Administrative Agent (or any such sub-agent), the L/C Issuer or such
Related Party, as the case may be, such Lender’s Applicable Percentage
(determined as of the time that the applicable unreimbursed expense or
indemnity payment is sought) of such unpaid amount, provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against the
Administrative Agent (or any such sub-agent) or the L/C Issuer in its capacity
as such, or against any Related Party of any of the foregoing acting for the
Administrative Agent (or any such sub-agent) or L/C Issuer in connection with
such capacity.  The obligations of the
Lenders under this subsection (c) are subject to the provisions of Section 2.12(d).

 

(d)                                 Waiver of Consequential Damages, Etc.  To
the fullest extent permitted by Applicable Law, none of the parties hereto
shall assert, and each of the parties hereto hereby waives, any claim against
any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, this Agreement, any
other Loan Document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby, any Loan or Letter of Credit or
the use of the proceeds thereof.  No
Indemnitee referred to in subsection (b) above shall be liable for any damages
arising from the use by unintended recipients of any information or other
materials distributed by it through telecommunications, electronic or other

 

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information transmission systems in
connection with this Agreement or the other Loan Documents or the transactions
contemplated hereby or thereby.

 

(e)                                  Payments.  All amounts due under this
Section shall be payable not later than ten Business Days after demand
therefor.

 

(f)                                    Survival.  The agreements in this Section
shall survive the resignation of the Administrative Agent and the L/C Issuer,
the replacement of any Lender, the termination of the Aggregate Commitments and
the repayment, satisfaction or discharge of all the other Obligations.

 

10.05                 Payments
Set Aside.   To the
extent that any payment by or on behalf of the Borrowers is made to the
Administrative Agent, the L/C Issuer or any Lender, or the Administrative
Agent, the L/C Issuer or any Lender exercises its right of setoff, and such
payment or the proceeds of such setoff or any part thereof is subsequently
invalidated, declared to be fraudulent or preferential, set aside or required
(including pursuant to any settlement entered into by the Administrative Agent,
the L/C Issuer or such Lender in its discretion) to be repaid to a trustee,
receiver or any other party, in connection with any proceeding under any Debtor
Relief Law or otherwise, then (a) to the extent of such recovery, and to the
extent permitted by law, the obligation or part thereof originally intended to
be satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such setoff had not occurred, and (b) each Lender
and the L/C Issuer severally agrees to pay to the Administrative Agent upon
demand its applicable share (without duplication) of any amount so recovered
from or repaid by the Administrative Agent, plus interest thereon from the date
of such demand to the date such payment is made at a rate per annum equal to
the Federal Funds Rate from time to time in effect.  The obligations of the Lenders and the L/C
Issuer under clause (b) of the preceding sentence shall survive the payment in
full of the Obligations and the termination of this Agreement.

 

10.06                 Successors and Assigns.

 

(a)                                  Successors and Assigns Generally.  The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted
hereby, except that no Borrower may assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of the
Administrative Agent and each Lender and no Lender may assign or otherwise
transfer any of its rights or obligations hereunder except (i) to an Eligible
Assignee in accordance with the provisions of subsection (b) of this Section,
(ii) by way of participation in accordance with the provisions of subsection
(d) of this Section, (iii) by way of pledge or assignment of a security
interest subject to the restrictions of subsection (f) of this Section, or (iv)
to an SPC in accordance with, and subject to the limitations in, the provisions
of subsection (h) of this Section (and any other attempted assignment or
transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby, Participants
to the extent provided in subsection (d) of this Section and, to the extent
expressly contemplated hereby, the Related Parties of each of the
Administrative Agent, the L/C Issuer and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

 

93

 

(b)                                 Assignments by Lenders.  Any
Lender may at any time assign to one or more Eligible Assignees all or a
portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans (including for purposes of this
subsection (b), participations in L/C Obligations and in Swing Line Loans) at
the time owing to it); provided that

 

(i)                                     except in the case of an assignment of the
entire remaining amount of the assigning Lender’s Commitment and the Loans at
the time owing to it or in the case of an assignment to a Lender or an
Affiliate of a Lender or an Approved Fund with respect to a Lender, the
aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) or, if the Commitment is not then in effect, the
principal outstanding balance of the Loans of the assigning Lender subject to
each such assignment, determined as of the date the Assignment and Assumption
with respect to such assignment is delivered to the Administrative Agent or, if
“Trade Date” is specified in the Assignment and Assumption, as of the Trade
Date, shall not be less than $5,000,000 unless each of
the Administrative Agent and, so long as no Event of Default has occurred and
is continuing, the Borrowers otherwise consent (each such consent not to be
unreasonably withheld or delayed); provided, however, that
concurrent assignments to members of an Assignee Group and concurrent
assignments from members of an Assignee Group to a single Eligible Assignee (or
to an Eligible Assignee and members of its Assignee Group) will be treated as a
single assignment for purposes of determining whether such minimum amount has
been met;

 

(ii)                                  each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and
obligations under this Agreement with respect to the Loans or the Commitment
assigned, except that this clause (ii) shall not apply to rights in respect of
Swing Line Loans;

 

(iii)                               the parties to each assignment shall execute
and deliver to the Administrative Agent an Assignment and Assumption, together
with a processing and recordation fee in the amount, if any, required as set
forth in Schedule 10.06, and the Eligible Assignee, if it shall not be a
Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire.

 

Subject to acceptance and recording thereof
by the Administrative Agent pursuant to subsection (c) of this Section, from
and after the effective date specified in each Assignment and Assumption, the
Eligible Assignee thereunder shall be a party to this Agreement and, to the
extent of the interest assigned by such Assignment and Assumption, have the
rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto) but shall continue to be entitled to the
benefits of Sections 3.01, 3.04, 3.05, and 10.04
with respect to facts and circumstances occurring prior to the effective date
of such assignment.  Upon request, the
Borrowers (at their expense) shall execute and deliver a Note to the assignee
Lender.  Any assignment or transfer by a
Lender of rights or obligations under this Agreement that does not comply with
this subsection shall be treated for purposes of

 

94

 

this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with subsection (d) of this Section.

 

(c)                                  Register.  The
Administrative Agent, acting solely for this purpose as an agent of the
Borrowers, shall maintain at the Administrative Agent’s Office a copy of each
Assignment and Assumption delivered to it and a register for the recordation of
the names and addresses of the Lenders, and the Commitments of, and principal
amounts of the Loans and L/C Obligations owing to, each Lender pursuant to the
terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive and the Borrowers, the Administrative Agent and the Lenders may
treat each Person whose name is recorded in the Register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. 
The Register shall be available for inspection by each of the Borrowers
and the L/C Issuer at any reasonable time and from time to time upon reasonable
prior notice.  In addition, at any time
that a request for a consent for a material or substantive change to the Loan
Documents is pending, any Lender may request and receive from the Administrative
Agent a copy of the Register.

 

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

 

Any agreement or instrument pursuant to which a Lender
sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or
waiver of any provision of this Agreement; provided that such agreement
or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in Section
10.01 (other than under Section 10.10(a) and (b)) that affects such
Participant.  Subject to subsection (e)
of this Section, the Borrowers agree that each Participant shall be entitled to
the benefits of Sections 3.01, 3.04 and 3.05 to the same extent as if it were a Lender and had acquired
its interest by assignment pursuant to subsection (b) of this Section.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 10.08 as though it were a Lender, provided such
Participant agrees to be subject to Section 2.13 as though it were a
Lender.

 

(e)                                  Limitations upon Participant Rights. 
A Participant shall not be entitled to receive any greater payment under
Section 3.01, 3.04 or 3.05
than the applicable Lender would have been entitled to receive with respect to
the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrowers’ prior written
consent.

 

95

 

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

 

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

 

(h)                                 Special Purpose Funding Vehicle. 
Notwithstanding anything to the contrary contained in this Section, any
Lender (a “Granting Lender”) may grant to a
special purpose funding vehicle (an “SPC”)
of such Granting Lender, identified as such in writing from time to time
delivered by the Granting Lender to the Administrative Agent and the Borrowers,
the option to provide to the Borrowers all or any part of any Loan that such
Granting Lender would otherwise be obligated to make to the Borrowers pursuant
to this Agreement, provided that (a)
nothing herein shall constitute a commitment to make any Loan by any SPC, (b)
the Granting Lender’s obligations under this Agreement shall remain unchanged,
(c) the Granting Lender shall retain the sole right to enforce this Agreement
and to approve any amendment, modification or waiver of any provision of this
Agreement and (d) if an SPC elects not to exercise such option or otherwise
fails to provide all or any part of such Loan, the Granting Lender shall be
obligated to make such Loan pursuant to the terms hereof.  The making of a Loan by an SPC hereunder
shall utilize the Commitment of the Granting Lender to the same extent, and as
if, such Loan were made by the Granting Lender. 
Each party hereto hereby agrees that no SPC shall be liable for any
expense reimbursement, indemnity or similar payment obligation under this
Agreement (all liability for which shall remain with the Granting Lender).  In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the later
of (i) the payment in full of all outstanding senior indebtedness of any SPC
and (ii) the Maturity Date, (or, as applicable, any maturity date relating to
the Term B Loan), it will not institute against, or join any other person in
instituting against, such SPC any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings or similar proceedings under the laws of
the United States of America or any State thereof.  In addition, notwithstanding anything to the
contrary contained in this Section, any SPC may (A) with notice to, but (except
as specified below) without the prior written consent of, the Borrowers or the
Administrative Agent and without paying any processing fee therefor, assign all
or a portion of its interests in any Loans to its Granting Lender or to any
financial institutions (consented to by the Administrative Agent and, so long as
no Default or Event of Default has occurred and is continuing, the Borrowers,
which consents shall not be unreasonably withheld or delayed) providing
liquidity and/or credit facilities to or for the account of such SPC to fund
the Loans made by such SPC or to support the securities (if any) issued by such
SPC to fund such Loans and (B) disclose on a confidential basis any non-public

 

96

 

information relating to its Loans (other than financial statements
referred to in Sections 5.05 and 6.04) to any rating agency,
commercial paper dealer or provider of a surety, guarantee or credit or
liquidity enhancement to such SPC.  In no
event shall the Borrowers be obligated to pay to an SPC that has made a Loan any
greater amount than the Borrowers would have been obligated to pay under this
Agreement if the Granting Lender had made such Loan.  An amendment to this Section 10.06(h)
without the written consent of an SPC shall be ineffective insofar as it alters
the rights and obligations of such SPC.

 

10.07                 Treatment of Certain
Information; Confidentiality.   Each of the Administrative Agent, the
Lenders and the L/C Issuer agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to
its Affiliates and to its and its Affiliates’ respective partners, directors,
officers, employees, agents, advisors and representatives in connection with
this Agreement (it being understood that the Persons to whom such disclosure is
made will be informed of the confidential nature of such Information and
instructed to keep such Information confidential), (b) to the extent requested
by any regulatory authority purporting to have jurisdiction over it (including
any self-regulatory authority, such as the National Association of Insurance
Commissioners), (c) to the extent required by Applicable Laws or regulations or
by any subpoena or similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies hereunder or under any other Loan
Document or any action or proceeding relating to this Agreement or any other
Loan Document or the enforcement of rights hereunder or thereunder, (f) subject
to an agreement containing provisions substantially the same as those of this
Section, to (i) any assignee of or Participant in, or any prospective assignee
of or Participant in, any of its rights or obligations under this Agreement or
(ii) any actual or prospective counterparty (or its advisors) to any swap or derivative
transaction relating to any of the Borrowers and its obligations, (g) with the
consent of the Borrowers or (h) to the extent such Information (x) becomes
publicly available other than as a result of a breach of this Section or (y)
becomes available to the Administrative Agent, any Lender, the L/C Issuer or
any of their respective Affiliates on a nonconfidential basis from a source
other than the Borrowers.

 

For purposes of this
Section, “Information” means all information received from the Borrowers
relating to the Borrowers or any of their respective businesses, other than any
such information that is available to the Administrative Agent, any Lender or
the L/C Issuer on a nonconfidential basis prior to disclosure by the Borrowers.  Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered
to have complied with its obligation to do so if such Person has exercised the
same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

 

Each of the
Administrative Agent, the Lenders and the L/C Issuer acknowledges that (a) the
Information may include material non-public information concerning the
Borrowers or a Excluded Subsidiary, as the case may be, (b) it has developed
compliance procedures regarding the use of material non-public information and
(c) it will handle such material non-public information in accordance with
Applicable Laws, including Federal and state securities laws.

 

Notwithstanding the
foregoing, unless specifically prohibited by Applicable Law or court order,
each of the Lenders, the L/C Issuer and the Administrative Agent shall, prior
to disclosure

 

97

 

thereof, notify the
Borrowers of any request for disclosure of any such non-public information by
any governmental agency or representative thereof (other than any such request
in connection with an examination of the financial condition of such Lender,
the L/C Issuer or the Administrative Agent by such governmental agency) or
pursuant to legal process.

 

10.08                 Right of Setoff.   If an Event of Default shall have occurred
and be continuing, each Lender, the L/C Issuer and each of their respective
Affiliates is hereby authorized at any time and from time to time, to the
fullest extent permitted by Applicable Law, to set off and apply any and all
deposits (general or special, time or demand, provisional or final, in whatever
currency) at any time held and other obligations (in whatever currency) at any
time owing by such Lender, the L/C Issuer or any such Affiliate to or for the
credit or the account of any of the Borrowers against any and all of the
obligations of any of the Borrowers now or hereafter existing under this Agreement
or any other Loan Document to such Lender or the L/C Issuer, irrespective of
whether or not such Lender or the L/C Issuer shall have made any demand under
this Agreement or any other Loan Document and although such obligations of any
of the Borrowers may be contingent or unmatured or are owed to a branch or
office of such Lender or the L/C Issuer different from the branch or office
holding such deposit or obligated on such indebtedness.  The rights of each Lender, the L/C Issuer and
their respective Affiliates under this Section are in addition to other rights
and remedies (including other rights of setoff) that such Lender, the L/C
Issuer or their respective Affiliates may have. 
Each Lender and the L/C Issuer agrees to notify the Borrowers and the
Administrative Agent promptly after any such setoff and application, provided
that the failure to give such notice shall not affect the validity of such
setoff and application.

 

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

 

10.10                 Counterparts; Integration;
Effectiveness.   This Agreement may be executed
in counterparts (and by different parties hereto in different counterparts),
each of which shall constitute an original, but all of which when taken
together shall constitute a single contract. 
This Agreement and the other Loan Documents constitute the entire
contract among the parties relating to the subject matter hereof and supersede
any and all previous agreements and understandings, oral or written, relating
to the subject matter hereof.  Except as
provided in Section 4.01, this Agreement shall become effective when it
shall have been executed by the Administrative Agent and when the
Administrative Agent shall have received counterparts hereof that, when taken
together, bear the signatures of each of the other parties hereto.  Delivery

 

98

 

of an
executed counterpart of a signature page of this Agreement by telecopy shall be
effective as delivery of a manually executed counterpart of this Agreement.

 

10.11                 Survival of Representations
and Warranties.   All representations and
warranties made hereunder and in any other Loan Document or other document
delivered pursuant hereto or thereto or in connection herewith or therewith
shall survive the execution and delivery hereof and thereof.  Such representations and warranties have been
or will be relied upon by the Administrative Agent and each Lender, regardless
of any investigation made by the Administrative Agent or any Lender or on their
behalf and notwithstanding that the Administrative Agent, the Lender or any
Term B Lender may have had notice or knowledge of any Default at the time of
any Credit Extension unless notice of Default in accordance with Section
6.15 has been received and shall continue in full force and effect as long
as any Loan or any other Obligation hereunder shall remain unpaid or
unsatisfied or any Letter of Credit shall remain outstanding.

 

10.12                 Concerning Joint and Several Liability of the
Borrowers

 

(a)                                  Each of the Borrowers is accepting joint
and several liability for all of the Obligations in consideration of the
financial accommodations to be provided by the Administrative Agent, the L/C
Issuer and the Lenders under this Agreement, for the mutual benefit, directly
and indirectly, of each of the Borrowers and in consideration of the
undertakings of each other Borrower to accept joint and several liability for
the Obligations of the Borrowers.

 

(b)                                 Each of the Borrowers, jointly and
severally, hereby irrevocably and unconditionally accepts, not merely as a
surety but also as a co-debtor, joint and several liability with the other
Borrowers with respect to the payment and performance of all of the Obligations
of the Borrowers (including, without limitation, any Obligations arising under
this Section), it being the intention of the parties hereto that all of the
Obligations shall be the joint and several obligations of each of the Borrowers
without preferences or distinction among them.

 

(c)                                  If and to the extent that any of the
Borrowers shall fail to make any payment with respect to any of the Obligations
as and when due or to perform any of the Obligations in accordance with the
terms thereof, then in each such event the other Borrowers will make such
payment with respect to, or perform, such Obligation.

 

(d)                                 The Obligations of each of the Borrowers
under the provisions of this Section 10.12 constitute full recourse
obligations of each such Borrower enforceable against each such Borrower to the
full extent of its properties and assets, to the fullest extent permitted by
Applicable Law, irrespective of the validity, regularity or enforceability of
this Agreement against any other Borrower or any other circumstance whatsoever.

 

(e)                                  Except as otherwise expressly provided in
this Agreement, each of the Borrowers, to the fullest extent permitted by
Applicable Law, hereby waives notice of acceptance of its joint and several
liability, notice of any Loans made under this Agreement, notice of any action
at any time taken or omitted by the Administrative Agent, the L/C Issuer or the
Lenders under or in respect of any of the Obligations, and, generally, to the
extent permitted by Applicable Law and except as to notices expressly provided
for in the Loan Documents, all demands, notices and

 

99

 

other formalities of every kind in connection with this Agreement.  Each Borrower, to the fullest extent
permitted by Applicable Law, hereby waives all defenses which may be available
by virtue of any valuation, stay, moratorium law or other similar law now or
hereafter in effect, any right to require the marshaling of assets of the
Borrowers and any other entity or Person primarily or secondarily liable with
respect to any of the Obligations, and all suretyship defenses generally.  Each of the Borrowers, to the fullest extent
permitted by Applicable Law, hereby assents to, and waives notice of, any
extension or postponement of the time for the payment of any of the
Obligations, the acceptance of any payment of any of the Obligations, the
acceptance of any partial payment thereon, any waiver, consent or other action
or acquiescence by the Lenders, the Administrative Agent or the L/C Issuer at
any time or times in respect of any default by any of the Borrowers in the
performance or satisfaction of any term, covenant, condition or provision of
this Agreement, any and all other indulgences whatsoever by the Lenders, the
Administrative Agent or the L/C Issuer in respect of any of the Obligations,
and the taking, addition, substitution or release, in whole or in part, at any
time or times, of any security for any of the Obligations or the addition,
substitution or release, in whole or in part, of any of the Borrowers.  Without limiting the generality of the
foregoing, to the fullest extent permitted by law, each of the Borrowers
assents to any other action or delay in acting or failure to act on the part of
the Lenders, the Administrative Agent or the L/C Issuer with respect to the
failure by any of the Borrowers to comply with any of its respective
Obligations including, without limitation, any failure strictly or diligently
to assert any right or to pursue any remedy or to comply fully with Applicable
Laws or regulations thereunder, which might, but for the provisions of this
Section, afford grounds for terminating, discharging or relieving any of the
Borrowers, in whole or in part, from any of its Obligations under this Section,
it being the intention of each of the Borrowers that, so long as any of the
Obligations hereunder remain unsatisfied, the Obligations of such Borrowers
under this Section shall not be discharged except by performance and then only
to the extent of such performance.  The
Obligations of each of the Borrowers under this Section shall not be diminished
or rendered unenforceable by any winding up, reorganization, arrangement,
liquidation, re-construction or similar proceeding with respect to any of the
other Borrowers, the Lenders, the Administrative Agent or the L/C Issuer.  The joint and several liability of the
Borrowers hereunder shall continue in full force and effect notwithstanding any
absorption, merger, amalgamation or any other change whatsoever in the name,
membership, constitution or place of formation of any of the other Borrowers,
the Lenders, the Administrative Agent or the L/C Issuer.

 

(f)                                    To the extent any Borrower makes a
payment hereunder in excess of the aggregate amount of the benefit received by
such Borrower in respect of the extensions of credit under the Credit Agreement
(the “Benefit Amount”), then such Borrower,
after the payment in full, in cash, of all of the Obligations, shall be
entitled to recover from each other Borrower such excess payment, pro rata, in accordance with the ratio of the
Benefit Amount received by each such other Borrower to the total Benefit Amount
received by all Borrowers, and the right to such recovery shall be deemed to be
an asset and property of such Borrower so funding; provided, that each of the Borrowers hereby agrees that it will not
enforce any of its rights of contribution or subrogation against the other
Borrowers with respect to any liability incurred by it hereunder or under any
of the other Loan Documents, any payments made by it to any of the Lenders or
the Administrative Agent with respect to any of the Obligations or any
collateral security therefor until such time as all of the Obligations have
been irrevocably paid in full in cash. 
Any claim which any Borrower may have against any other Borrower with
respect to any payments to the

 

100

 

Lenders or the Administrative Agent hereunder or under any other Loan
Document are hereby expressly made subordinate and junior in right of payment,
without limitation as to any increases in the Obligations arising hereunder or
thereunder, to the prior payment in full of the Obligations and, in the event
of any insolvency, bankruptcy, receivership, liquidation, reorganization or
other similar proceeding under the laws of any jurisdiction relating to any
Borrower, its debts or its assets, whether voluntary or involuntary, all such
Obligations shall be paid in full before any payment or distribution of any
character, whether in cash, securities or other property, shall be made to any
other Borrower therefor.

 

(g)                                 Each of the Borrowers hereby agrees that
it will not enforce any of its rights of contribution or subrogation against
the other Borrowers with respect to any liability incurred by it hereunder or
under any of the other Loan Documents, any payments made by it to any of the
Lenders, the L/C Issuer or the Administrative Agent with respect to any of the
Obligations or any collateral security therefor until such time as all of the
Obligations have been irrevocably paid in full in cash.  Any claim which any Borrower may have against
any other Borrower with respect to any payments to the Lenders, the L/C Issuer
or either Agent hereunder or under any other Loan Document are hereby expressly
made subordinate and junior in right of payment, without limitation as to any
increases in the Obligations arising hereunder or thereunder, to the prior
payment in full of the Obligations and, in the event of any insolvency,
bankruptcy, receivership, liquidation, reorganization or other similar
proceeding under the laws of any jurisdiction relating to any Borrower, its
debts or its assets, whether voluntary or involuntary, all such Obligations
shall be paid in full before any payment or distribution of any character,
whether in cash, securities or other property, shall be made to any other
Borrower therefor.

 

(h)                                 Each of the Borrowers hereby agrees that
the payment of any amounts due with respect to the Indebtedness owing by any
Borrower to any other Borrower is hereby subordinated to the prior payment in
full in cash of the Obligations.  Each
Borrower hereby agrees that after the occurrences and during the continuance of
any Default or Event of Default, such Borrower will not demand, sue for or
otherwise attempt to collect any Indebtedness of any other Borrower owing to
such Borrower until the Obligations shall have been paid in full in cash.  If, notwithstanding the foregoing sentence,
such Borrower shall collect, enforce or receive any amounts in respect of such
Indebtedness before payment in full in cash of the Obligations, such amounts
shall be collected, enforced, received by such Borrower as trustee for the
Administrative Agent and be paid over to the Administrative Agent for the pro rata accounts of the relevant Lenders (in accordance
with each such Lender’s Commitment) to be applied to repay (or be held as
security for the repayment of) the Obligations.

 

(i)                                     The provisions of this Section 10.12
are made for the benefit of the Administrative Agent, the L/C Issuer and the
Lenders and their successors and assigns, and may be enforced in good faith by
them from time to time against any or all of the Borrowers as often as the
occasion therefor may arise and without requirement on the part of the
Administrative Agent, the L/C Issuer or the Lenders first to marshal any of
their claims or to exercise any of their rights against any other Borrower or
to exhaust any remedies available to them against any other Borrower or to
resort to any other source or means of obtaining payment of any of the
Obligations hereunder or to elect any other remedy.  The provisions of this Section 10.12
shall remain in effect until all of the Obligations shall have been paid in
full or otherwise fully satisfied.  If at
any time, any payment, or any part thereof, made in respect of any of the

 

101

 

Obligations, is rescinded or must otherwise be restored or returned by
the Administrative Agent, the L/C Issuer or the Lenders upon the insolvency,
bankruptcy or reorganization of any of the Borrowers or is repaid in good faith
settlement of a pending or threatened avoidance claim, or otherwise, the
provisions of this Section 10.12 will forthwith be reinstated in effect,
as though such payment had not been made.

 

(j)                                     Each of the Borrowers hereby appoints the
Parent, and the Parent hereby agrees, to act as its representative and
authorized signor with respect to any notices, demands, communications or
requests under this Agreement or the other Loan Documents, including, without
limitation, with respect to Committed Loan Notice, Letter of Credit Application
and Compliance Certificates and pursuant to Section 10.02 of this
Agreement.

 

(k)                                  It is the intention and agreement of the
Borrowers and the Lenders that the obligations of the Borrowers under this
Agreement shall be valid and enforceable against the Borrowers to the maximum
extent permitted by Applicable Law. 
Accordingly, if any provision of this Agreement creating any obligation
of the Borrowers in favor of the Lenders shall be declared to be invalid or unenforceable
in any respect or to any extent, it is the stated intention and agreement of
the Borrowers and the Lenders that any balance of the obligation created by
such provision and all other obligations of the Borrowers to the Lenders
created by other provisions of this Credit Agreement shall remain valid and
enforceable.  Likewise, if by final order
a court of competent jurisdiction shall declare any sums which the Lenders may
be otherwise entitled to collect from the Borrowers under this Credit Agreement
to be in excess of those permitted under any law (including any federal or
state fraudulent conveyance or like statute or rule of law) applicable to the
Borrowers’ obligations under this Agreement, it is the stated intention and
agreement of the Borrowers and the Lenders that all sums not in excess of those
permitted under such Applicable Law shall remain fully collectible by the
Lenders from the Borrowers.

 

10.13                 Severability.   If any provision of this Agreement or the
other Loan Documents is held to be illegal, invalid or unenforceable, (a) the
legality, validity and enforceability of the remaining provisions of this
Agreement and the other Loan Documents shall not be affected or impaired
thereby and (b) the parties shall endeavor in good faith negotiations to
replace the illegal, invalid or unenforceable provisions with valid provisions
the economic effect of which comes as close as possible to that of the illegal,
invalid or unenforceable provisions.  The
invalidity of a provision in a particular jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

 

10.14                 Replacement of Lenders.   If any Lender requests compensation under Section
3.04 or is unable to lend under Section 3.02, or if the Borrowers
are required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, or if
any Lender is a Defaulting Lender, then the Borrowers may, at their sole
expense and effort, upon notice to such Lender and the Administrative Agent,
require such Lender to assign and delegate, without recourse (in accordance
with and subject to the restrictions contained in, and consents required by, Section
10.06), all of its interests, rights and obligations under this Agreement
and the related Loan Documents to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment), provided that:

 

102

 

(a)                                  the Borrowers shall have paid to the
Administrative Agent the assignment fee specified in Section 10.06(b);

 

(b)                                 such Lender shall have received payment
of an amount equal to the outstanding principal of its Loans and L/C Advances,
accrued interest thereon, accrued fees and all other amounts payable to it hereunder
and under the other Loan Documents (including any amounts under Section 3.05)
from the assignee (to the extent of such outstanding principal and accrued
interest and fees) or the Borrowers (in the case of all other amounts);

 

(c)                                  in the case of any such assignment
resulting from a claim for compensation under Section 3.04 or payments
required to be made pursuant to Section 3.01, such assignment will
result in a reduction in such compensation or payments thereafter; and

 

(d)                                 such assignment does not conflict with
Applicable Laws.

 

A Lender shall not be required to make any such
assignment or delegation if, prior thereto, as a result of a waiver by such
Lender or otherwise, the circumstances entitling the Borrowers to require such
assignment and delegation cease to apply.

 

10.15                 Collateral Security.

 

(a)                                  The Obligations shall be secured by (a) a
perfected (except in Real Property and motor vehicles) first-priority security
interest (subject to Permitted Liens entitled to priority under Applicable Law)
in all assets of each Borrower, whether now owned or hereafter acquired,
pursuant to the terms of the Security Agreement to which each Borrower is a
party; (b) a pledge of 100% of the capital stock or other Equity Interests of
such Borrowers (other than the Parent) and of the Non-Borrower Subsidiaries
(other than NELS) to the Administrative Agent on behalf of the Lenders and the
Agents pursuant to the Pledge Agreement; and (c) a pledge of 65% of the capital
stock or other Equity Interests of each Foreign Subsidiary; provided
that the Borrowers hereby agree, upon the request of the Administrative Agent
and the Required Lenders, to deliver, as promptly as practicable, but in any
event within sixty (60) days, titles to motor vehicles and mortgages with
respect to Real Property and take such other steps as may be reasonably
requested (including, without limitation, the delivery of legal opinions,
Consulting Engineer’s reports and title insurance) so as to provide the
Administrative Agent, for the benefit of the Lenders and the Agents, a
perfected first-priority security interest in such assets.

 

(b)                                 The Borrowers hereby acknowledge that (i)
any and all Uniform Commercial Code financing statements (together with all
rights thereunder) filed in connection with the Existing Credit Agreement
naming Fleet National Bank, as secured party, and such Borrower, as debtor,
have been, or simultaneously herewith are being, assigned to the Administrative
Agent and shall be effective to perfect the Administrative Agent’s security interest
granted by such Borrower pursuant to the Loan Documents to the extent that such
security interest may be perfected by the filing of Uniform Commercial Code
financing statements and (ii) such prior filings represent pre-filings of
Uniform Commercial Code financing statements for purposes of so perfecting the
security interest granted by the Borrowers under the Loan Documents.  Until all of the Obligations have been
finally paid and satisfied in full, the provisions of this Section shall
continue to apply, and such filings shall continue to be effective and not
subject to any right of 

 

103

 

termination in
respect of the security interests granted herein, whether any obligations under
the Existing Credit Agreement are to be discharged with the proceeds of any of
the Loans or are to continue independently or otherwise.

 

(c)                                  In the event the Borrowers dispose of any
assets as permitted hereunder, the Administrative Agent will, at the Borrowers’
sole cost and expense, execute and deliver all such forms, releases,
discharges, assignments, termination statements, and similar documents as the
Borrowers may reasonably request in order to release the Liens granted to the
Administrative Agent with respect to such assets.

 

10.16                 Existing Credit Agreement Superseded.

 

(a)                                  Existing Credit Agreement Superseded. 
On the Closing Date, this Agreement shall supersede the Existing Credit
Agreement in its entirety, except as provided in this Section.  On the Closing Date, the rights and
obligations of the parties hereto evidenced by the Existing Credit Agreement
shall be evidenced by this Agreement and the other Loan Documents, the “Loans”
as defined in the Existing Credit Agreement shall be converted to Loans as
defined herein and the Existing Letters of Credit issued by the Issuing Lender
(as defined in the Existing Credit Agreement) for the account of the Borrowers
prior to the Closing Date shall be deemed to be Letters of Credit under this
Credit Agreement, and shall bear interest and be subject to such other fees as
set forth in this Agreement.

 

(b)                                 Interest and Fees under Superseded
Agreement.  All interest and
fees and expenses, if any, owing or accruing under or in respect of the
Existing Credit Agreement through the Closing Date (including any breakage fees
in respect of Eurodollar Rate Loans as defined therein) shall be calculated as
of the Closing Date (pro rated in the case of any fractional periods), and
shall be paid on the Closing Date.

 

10.17                 Governing Law; Jurisdiction; Etc.

 

(a)                                  GOVERNING LAW. 
THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAW OF THE COMMONWEALTH OF MASSACHUSETTS.

 

(b)                                 SUBMISSION TO JURISDICTION. 
EACH OF THE BORROWERS IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR
ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE
COMMONWEALTH OF MASSACHUSETTS SITTING IN SUFFOLK COUNTY AND OF THE UNITED
STATES DISTRICT COURT OF THE DISTRICT OF MASSACHUSETTS, AND ANY APPELLATE COURT
FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF
ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY
AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD
AND DETERMINED IN SUCH MASSACHUSETTS STATE COURT OR, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO

 

104

 

AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT
OR IN ANY OTHER MANNER PROVIDED BY LAW. 
NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY
RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE
HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT AGAINST ANY OF THE BORROWERS OR THEIR PROPERTIES IN THE COURTS OF
ANY JURISDICTION.

 

(c)                                  WAIVER OF VENUE. 
EACH OF THE BORROWERS IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR
HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT
REFERRED TO IN PARAGRAPH (B) OF THIS SECTION.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH
COURT.

 

(d)                                 SERVICE OF PROCESS. 
EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE
MANNER PROVIDED FOR NOTICES IN SECTION 10.02.  NOTHING IN THIS AGREEMENT WILL AFFECT THE
RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
APPLICABLE LAW.

 

10.18                 Waiver of Jury Trial.   EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY).  EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

10.19                 USA PATRIOT Act Notice.   Each Lender that is subject to the Act (as
hereinafter defined) and the Administrative Agent (for itself and not on behalf
of any Lender) hereby notifies the Borrowers that pursuant to the requirements
of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October
26, 2001)) (the “Act”), it is required to obtain, verify and record
information that identifies the Borrowers, which information includes the name
and

 

105

 

address
of each of the Borrowers and other information that will allow such Lender or
the Administrative Agent, as applicable, to identify the Borrowers in
accordance with the Act.

 

106

 

IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed as a sealed instrument as of the date first above
written.

 

 

[BORROWERS]

 

 

	
   

  	
  BANK OF AMERICA, N.A., as

  
	
   

  	
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  BANK OF AMERICA, N.A., as a Lender,
  L/C

  
	
   

  	
  Issuer and Swing Line
  Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

[OTHER
LENDERS]

 

 

	
   

  	
  Bank of America, N.A., as
  Administrative

  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Carol Alm

  	
   

  
	
   

  	
  Name:

  	
  Carol Alm

  
	
   

  	
  Title:

  	
  Assistant Vice President

  
					

 

Signature
Page to Amended and Restated Credit Agreement

for Casella Waste Systems, Inc. and Certain of its Subsidiaries

 

 

	
   

  	
  BANK OF AMERICA, N.A., as a Lender,

  L/C Issuer and Swing Line Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Maria F. Maia

  	
   

  
	
   

  	
  Name:

  	
  Maria F. Maia

  
	
   

  	
  Title:

  	
  Managing Director

  
					

 

 

	
   

  	
  Citizens Bank of Massachusetts

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Cindy Chen

  	
   

  
	
   

  	
  Name:

  	
  Cindy Chen

  
	
   

  	
  Title:

  	
  Vice President

  
					

 

 

	
   

  	
  Sovereign Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Walter J. Marullo

  	
   

  
	
   

  	
  Name:

  	
  Walter J. Marullo

  
	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

 

	
   

  	
  CALYON NEW YORK BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Dianne M. Scott

  	
   

  
	
   

  	
  Name:

  	
  Dianne M. Scott

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ F. Frank Herrera

  	
   

  
	
   

  	
  Name:

  	
  F. Frank Herrera

  
	
   

  	
  Title:

  	
  Director

  
								

 

 

	
   

  	
  Wachovia Bank, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ John G. Taylor

  	
   

  
	
   

  	
  Name:

  	
  John G. Taylor

  
	
   

  	
  Title:

  	
  Vice President

  
					

 

 

	
   

  	
  JPMorgan Chase Bank, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ William C. Dehmer

  	
   

  
	
   

  	
  Name:

  	
  William C. Dehmer

  
	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

 

	
   

  	
  LASALLE BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Shaun R. Klienman

  	
   

  
	
   

  	
  Name:

  	
  Shaun R. Kleinman

  
	
   

  	
  Title:

  	
  Vice President

  
					

 

 

	
   

  	
  Banknorth, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ E. Kirke Hart

  	
   

  
	
   

  	
  Name:

  	
  E. Kirke Hart

  
	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

 

	
   

  	
  NATIONAL CITY BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Laura J. Rowley

  	
   

  
	
   

  	
  Name:

  	
  Laura J. Rowley

  
	
   

  	
  Title:

  	
  Vice President

  
					

 

 

	
   

  	
  Merrill Lynch Capital, a division of Merrill

  Lynch Business Financial Services Inc. 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Kelli O’Connell

  	
   

  
	
   

  	
  Name:

  	
  Kelli O’Connell

  
	
   

  	
  Title:

  	
  Vice President

  
					

 

 

	
   

  	
  Raymond James Bank, FSB

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Thomas F. Macina

  	
   

  
	
   

  	
  Name:

  	
  Thomas F. Macina

  
	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

 

	
   

  	
  Comerica Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Claudia
  Cassa

  	
   

  
	
   

  	
  Name:

  	
  Claudia Cassa

  
	
   

  	
  Title:

  	
  Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]