Document:

Exhibit 4.2

EXECUTION COPY

 

REGISTRATION RIGHTS
AGREEMENT

This REGISTRATION RIGHTS AGREEMENT dated Feburary 2,
2006 (the “Agreement”) is entered into by and among Indalex Holding Corp., a
Delaware corporation (the “Company”), the guarantors listed in Schedule 1
hereto (the “Guarantors”), J.P. Morgan Securities Inc. (“JPMorgan”), on behalf
of itself and as representative of Harris Nesbitt Corp., Credit Suisse First
Boston LLC, Piper Jaffray & Co. and Morgan Joseph & Co. Inc.
(collectively, and together with JPMorgan, the “Initial Purchasers”).

The Company, the Guarantors and JPMorgan, as
representative of the Initial Purchasers, are parties to the Purchase Agreement
dated January 30, 2006 (the “Purchase Agreement”), which provides for the sale
by the Company to the Initial Purchasers of $270,000,000 aggregate principal
amount of the Company’s Second-Priority Senior Secured Notes due 2014 (the “Securities”)
which will each be guaranteed on a second-priority secured senior basis by each
of the Guarantors.  As an inducement to
the Initial Purchasers to enter into the Purchase Agreement, the Company and
the Guarantors have agreed to provide to the Initial Purchasers and their
direct and indirect transferees the registration rights with respect to the
Securities set forth in this Agreement. 
The execution and delivery of this Agreement is a condition to the
closing under the Purchase Agreement.

In consideration of the foregoing, the parties hereto
agree as follows:

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

“Additional Interest” shall have the meaning set forth
in Section 2(d).

“Agreement” shall have the meaning set forth in the
preamble.

“Business Day” shall mean any day that is not a
Saturday, Sunday or other day on which commercial banks in New York City are
authorized or required by law to remain closed.

“Closing Date” shall mean the Closing Date as defined
in the Purchase Agreement.

“Company” shall have the meaning set forth in the
preamble and shall also include the Company’s successors.

“Exchange Act” shall mean the Securities Exchange Act
of 1934, as amended from time to time.

“Exchange Dates” shall have the meaning set forth in
Section 2(a)(ii) hereof.

 

“Exchange Offer” shall mean the exchange offer by the
Company and the Guarantors of Exchange Securities for Registrable Securities
pursuant to Section 2(a) hereof.

“Exchange Offer Registration” shall mean a
registration under the Securities Act effected pursuant to Section 2(a) hereof.

“Exchange Offer Registration Statement” shall mean an
exchange offer registration statement on Form S-4 (or, if applicable, on
another appropriate form) and all amendments and supplements to such
registration statement, in each case including the Prospectus contained
therein, all exhibits thereto and any document incorporated by reference
therein.

“Exchange Securities” shall mean second-priority
senior secured notes issued by the Company and guaranteed by the Guarantors
under the Indenture containing terms identical to the Securities (except that
the Exchange Securities will not be subject to restrictions on transfer or to
any increase in annual interest rate for failure to comply with this Agreement)
and to be offered to Holders of Securities in exchange for Securities pursuant to
the Exchange Offer.

“Guarantors” shall have the meaning set forth in the
preamble and shall also include any Guarantor’s successors.

“Holders” shall mean the Initial Purchasers, for so
long as they own any Registrable Securities, and each of their successors,
assigns and direct and indirect transferees who become owners of Registrable
Securities under the Indenture; provided that for purposes of Sections 4 and 5
of this Agreement, the term “Holders” shall include Participating
Broker-Dealers.

“Indemnified Person” and “Indemnifying Person” shall
have the meanings set forth in Section 5(c) hereof.

“Indenture” shall mean the Indenture relating to the
Securities dated as of the Closing Date among the Company, the Guarantors and
U.S. Bank National Association, as trustee, and as the same may be amended from
time to time in accordance with the terms thereof.

“Initial Purchasers” shall have the meaning set forth
in the preamble.

“Inspector” shall have the meaning set forth in
Section 3(a)(xiii) hereof.

“JPMorgan” shall have the meaning set forth in the
preamble.

“Majority Holders” shall mean the Holders of a
majority of the aggregate principal amount of the outstanding Registrable
Securities; provided that whenever the consent or approval of Holders of a
specified percentage of Registrable Securities is required hereunder, any
Registrable Securities owned directly or indirectly by the Company or any of
its affiliates shall not be counted in determining whether such consent

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or approval was given by the Holders of such required
percentage or amount (unless, in the event of any Shelf Registration Statement,
if the Company, any of its affiliates and any Initial Purchaser are the only
Holders of Registrable Securities that are covered under such Shelf
Registration Statement); and provided, further, that if the Company shall issue
any additional Securities under the Indenture prior to consummation of the
Exchange Offer or, if applicable, the effectiveness of any Shelf Registration
Statement, such additional Securities and the Registrable Securities to which
this Agreement relates shall be treated together as one class for purposes of
determining whether the consent or approval of Holders of a specified
percentage of Registrable Securities has been obtained.

“Participating Broker-Dealers” shall have the meaning
set forth in Section 4(a) hereof.

“Person” shall mean an individual, partnership,
limited liability company, corporation, trust or unincorporated organization,
or a government or agency or political subdivision thereof.

“Prospectus” shall mean the prospectus included in a
Registration Statement, including any preliminary prospectus, and any such
prospectus as amended or supplemented by any prospectus supplement, including a
prospectus supplement with respect to the terms of the offering of any portion
of the Registrable Securities covered by a Shelf Registration Statement, and by
all other amendments and supplements to such prospectus, and in each case
including any document incorporated by reference therein.

“Purchase Agreement” shall have the meaning set forth
in the preamble.

“Registrable Securities” shall mean the Securities;
provided that the Securities shall cease to be Registrable Securities (i) when
a Registration Statement with respect to such Securities has been declared
effective under the Securities Act and such Securities have been exchanged or
disposed of pursuant to such Registration Statement, (ii) when such Securities
are eligible to be sold pursuant to Rule 144(k) (or any similar provision then
in force, but not Rule 144A) under the Securities Act, (iii) when such
Securities are sold pursuant to Rule 144 under circumstances after which such
Securities are freely transferable under the Securities Act without
registration or (iv) when such Securities cease to be outstanding.

“Registration Default” shall have the meaning set
forth in Section 2(d).

“Registration Expenses” shall mean any and all
expenses incident to performance of or compliance by the Company and the
Guarantors with this Agreement, including without limitation: (i) all SEC,
stock exchange or National Association of Securities Dealers, Inc. registration
and filing fees, (ii) all fees and expenses incurred in connection with
compliance with state securities or blue sky laws (including reasonable fees
and disbursements of counsel for any Underwriters or Holders in connection with
blue sky qualification of any Exchange Securities or Registrable Securities),
(iii) subject to clause (vii) and the exclusion of fees and expenses of
Underwriters’ counsel referred to below, all expenses of any Persons in
preparing or assisting in preparing, word processing,

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printing and distributing any Registration Statement,
any Prospectus and any amendments or supplements thereto, any underwriting
agreements, securities sales agreements or other similar agreements and any
other documents relating to the performance of and compliance with this
Agreement, (iv) all rating agency fees, (v) all fees and disbursements relating
to the qualification of the Indenture under applicable securities laws, (vi)
the fees and disbursements of the Trustee and its counsel, (vii) the fees and
disbursements of counsel for the Company and the Guarantors and, in the case of
a Shelf Registration Statement, the fees and disbursements of one counsel for
the Holders (which counsel shall be selected by the Majority Holders and which
counsel may also be counsel for the Initial Purchasers) and (viii) the fees and
disbursements of the independent public accountants of the Company and the
Guarantors, including the expenses of any special audits or “comfort” letters
required by or incident to the performance of and compliance with this
Agreement, but excluding fees and expenses of counsel to the Underwriters
(other than fees and expenses set forth in clause (ii) above) or the Holders
and underwriting discounts and commissions, brokerage commissions and transfer
taxes, if any, relating to the sale or disposition of Registrable Securities by
a Holder.

“Registration Statement” shall mean any registration
statement of the Company and the Guarantors that covers any of the Exchange
Securities or Registrable Securities pursuant to the provisions of this
Agreement and all amendments and supplements to any such registration
statement, including post-effective amendments, in each case including the
Prospectus contained therein, all exhibits thereto and any document
incorporated by reference therein.

“SEC” shall mean the United States Securities and
Exchange Commission.

“Securities” shall have the meaning set forth in the
preamble.

“Securities Act” shall mean the Securities Act of
1933, as amended from time to time.

“Shelf Effectiveness Period” shall have the meaning
set forth in Section 2(b) hereof.

“Shelf Registration” shall mean a registration
effected pursuant to Section 2(b) hereof.

“Shelf Registration Statement” shall mean a “shelf”
registration statement of the Company and the Guarantors that covers all or a
portion of the Registrable Securities (but no other securities unless approved
by the Holders whose Registrable Securities are to be covered by such Shelf
Registration Statement) on an appropriate form under Rule 415 under the
Securities Act, or any similar rule that may be adopted by the SEC, and all
amendments and supplements to such registration statement, including
post-effective amendments, in each case including the Prospectus contained
therein, all exhibits thereto and any document incorporated by reference
therein.

“Staff” shall mean the staff of the SEC. 

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“Target Registration Date” shall have the meaning set
forth in Section 2(d) hereof.

“Registration Default” shall have the meaning set
forth in Section 2(d).

“Trust Indenture Act” shall mean the Trust Indenture
Act of 1939, as amended from time to time.

“Trustee” shall mean the trustee with respect to the
Securities under the Indenture.

“Underwriter” shall have the meaning set forth in
Section 3(e) hereof.

“Underwritten Offering” shall mean an offering in
which Registrable Securities are sold to an Underwriter for reoffering to the
public.

2.             Registration
Under the Securities Act.  (a)  To the extent not prohibited by any
applicable law or applicable interpretations of the Staff, the Company and the
Guarantors shall use their reasonable best efforts to (i) cause to be filed an
Exchange Offer Registration Statement covering an offer to the Holders to
exchange all the Registrable Securities for Exchange Securities and (ii) have
such Registration Statement declared effective and remain effective until the
earlier of such time as the Participating Broker-Dealers shall have disposed of
the Registrable Securities and 180 days after the closing of the Exchange
Offer.  The Company and the Guarantors
shall commence the Exchange Offer promptly after the Exchange Offer Registration
Statement is declared effective by the SEC and use their reasonable best
efforts to complete the Exchange Offer not later than 60 days after such
effective date.

The Company and the Guarantors shall commence the
Exchange Offer by mailing the related Prospectus, appropriate letters of
transmittal and other accompanying documents to each Holder stating, in
addition to such other disclosures as are required by applicable law,
substantially the following:

(i)            that
the Exchange Offer is being made pursuant to this Agreement and that all
Registrable Securities validly tendered and not properly withdrawn will be
accepted for exchange;

(ii)           the
dates of acceptance for exchange (which shall be a period of at least 20
Business Days from the date such notice is mailed) (the “Exchange Dates”);

(iii)          that
any Registrable Security not tendered will remain outstanding and continue to
accrue interest but will not retain any rights under this Agreement;

(iv)          that
any Holder electing to have a Registrable Security exchanged pursuant to the
Exchange Offer will be required to surrender such Registrable Security,
together with the appropriate letters of transmittal, to the institution and at
the address (located in the Borough of Manhattan, The City of New York) and in
the manner specified in the notice, prior to the close of business on the last
Exchange Date; and

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(v)           that
any Holder will be entitled to withdraw its election, not later than the close
of business on the last Exchange Date, by sending to the institution and at the
address (located in the Borough of Manhattan, The City of New York) specified
in the notice, a telegram, telex, facsimile transmission or letter setting
forth the name of such Holder, the principal amount of Registrable Securities
delivered for exchange and a statement that such Holder is withdrawing its
election to have such Securities exchanged.

As a condition to participating in the Exchange Offer,
a Holder will be required to represent to the Company and the Guarantors that
(i) any Exchange Securities to be received by it will be acquired in the
ordinary course of its business, (ii) at the time of the commencement of the
Exchange Offer it has no arrangement or understanding with any Person to
participate in the distribution (within the meaning of the Securities Act) of
the Exchange Securities in violation of the provisions of the Securities Act,
(iii) it is not an “affiliate” (within the meaning of Rule 405 under the
Securities Act) of the Company or any Guarantor and (iv) if such Holder is a
broker-dealer that will receive Exchange Securities for its own account in
exchange for Registrable Securities that were acquired as a result of
market-making or other trading activities, then such Holder will deliver a
Prospectus in connection with any resale of such Exchange Securities.

As soon as practicable after the last Exchange Date,
the Company and the Guarantors shall:

(i)            accept
for exchange Registrable Securities or portions thereof validly tendered and
not properly withdrawn pursuant to the Exchange Offer; and

(ii)           deliver,
or cause to be delivered, to the Trustee for cancelation all Registrable
Securities or portions thereof so accepted for exchange by the Company and
issue, and cause the Trustee to promptly authenticate and deliver to each
Holder, Exchange Securities equal in principal amount to the principal amount
of the Registrable Securities surrendered by such Holder.

The Company and the Guarantors shall use their
reasonable best efforts to complete the Exchange Offer as provided above and
shall comply with the applicable requirements of the Securities Act, the
Exchange Act and other applicable laws and regulations in connection with the
Exchange Offer.  The Exchange Offer shall
not be subject to any conditions, other than that the Exchange Offer does not
violate any applicable law or applicable interpretations of the Staff.

(b)           In the
event that (i) the Company and the Guarantors determine that the Exchange Offer
Registration provided for in Section 2(a) above is not available or may not be
completed as soon as practicable after the last Exchange Date because it would
violate any applicable law or applicable interpretations of the Staff, (ii) the
Exchange Offer is not for any other reason completed by the date that is 270
days after the Closing Date, (iii) upon the request of any Holder that is not
eligible to participate in the Exchange Offer or who participates in the
Exchange Offer but does not receive Exchange Securities on the Exchange Date
that may be freely transferred without restriction under

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federal securities laws or (iv) if, in the reasonable
opinion of counsel for the Initial Purchasers, a Registration Statement must be
filed and a Prospectus must be delivered by the Initial Purchasers in
connection with any offer or sale of Registrable Securities originally
purchased and still held by the Initial Purchasers, the Company and the
Guarantors shall use their reasonable best efforts to cause to be filed as soon
as practicable after such determination, date or request, as the case may be, a
Shelf Registration Statement providing for the sale of all the Registrable
Securities by the Holders thereof and to have such Shelf Registration Statement
declared effective by the SEC.

In the event that the Company and the Guarantors are
required to file a Shelf Registration Statement pursuant to clause (iv) of the
preceding sentence, the Company and the Guarantors shall use their reasonable
best efforts to file and have declared effective by the SEC both an Exchange
Offer Registration Statement pursuant to Section 2(a) with respect to all
Registrable Securities and a Shelf Registration Statement (which may be a
combined Registration Statement with the Exchange Offer Registration Statement)
with respect to offers and sales of Registrable Securities held by the Initial
Purchasers after completion of the Exchange Offer.

The Company and the Guarantors agree to use their
reasonable best efforts to keep the Shelf Registration Statement continuously
effective until the expiration of the period referred to in Rule 144(k) (or any
similar rule then in force, but not Rule 144A) under the Securities Act with
respect to the Registrable Securities or such shorter period that will
terminate when all the Registrable Securities covered by the Shelf Registration
Statement have been sold pursuant to the Shelf Registration Statement or are no
longer outstanding (the “Shelf Effectiveness Period”).  The Company and the Guarantors further agree
to supplement or amend the Shelf Registration Statement and the related
Prospectus if required by the rules, regulations or instructions applicable to
the registration form used by the Company for such Shelf Registration Statement
or by the Securities Act or by any other rules and regulations thereunder for
shelf registration or if reasonably and timely requested by a Holder of Registrable
Securities with respect to information relating to such Holder, and to use
their reasonable best efforts to cause any such amendment to become effective
and such Shelf Registration Statement and Prospectus to become usable as soon
as thereafter practicable; provided that in the case of amendments (but not
supplements) to the Shelf Registration Statement and the related Prospectus,
the Company and the Guarantors shall not be required to amend the Shelf
Registration Statement and related Prospectus to add additional Holders more
than three times per calendar quarter. 
The Company and the Guarantors agree to furnish to the Holders of
Registrable Securities copies of any such supplement or amendment promptly
after its being used or filed with the SEC.

(c)           The
Company and the Guarantors shall pay all Registration Expenses in connection
with any registration pursuant to Section 2(a) or Section 2(b) hereof.  Each Holder shall pay all underwriting
discounts and commissions, brokerage commissions and transfer taxes, if any,
relating to the sale or disposition of such Holder’s Registrable Securities
pursuant to the Shelf Registration Statement.

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(d)           An
Exchange Offer Registration Statement pursuant to Section 2(a) hereof or a
Shelf Registration Statement pursuant to Section 2(b) hereof will not be deemed
to have become effective unless it has been declared effective by the SEC.

In the event that the Exchange Offer is not completed
on or prior to the date that is 270 days after the Closing Date (or, if
required hereby, the Shelf Registration Statement is not declared effective on
or prior to the date that is 240 days after the Closing Date) (each such date,
the “Target Registration Date” and each such event a “Registration Default”),
the annual interest rate on the Registrable Securities will be increased by
0.25% per annum for the first 90-day period immediately following the Target
Registration Date and will increase by an additional 0.25% per annum with
respect to each subsequent 90-day period, in each case, until the Exchange
Offer is completed or the Shelf Registration Statement, if required hereby, is
declared effective by the SEC or the Securities become freely tradable under
the Securities Act; provided, however, that in no case shall such additional
interest exceed 1.0% per annum. 
Additional interest payable under this paragraph is referred to as “Additional
Interest”.  Such Additional Interest
shall be the Holders’ sole monetary remedy under this Agreement with respect to
any Registration Default.

If the Shelf Registration Statement, if required
hereby, has been declared effective and thereafter either ceases to be
effective or the Prospectus contained therein ceases to be usable at any time
during the Shelf Effectiveness Period, and such failure to remain effective or
usable exists for more than 30 days (whether or not consecutive) in any
12-month period, then the interest rate on the Registrable Securities will be
increased by 1.00% per annum commencing on the 31st day in such 12-month period
and ending on such date that the Shelf Registration Statement has again been
declared effective or the Prospectus again becomes usable.

Notwithstanding the foregoing, (1) the amount of
Additional Interest payable shall not increase because more than one
Registration Default has occurred and is pending and (2) a Holder of
Registrable Securities or Exchange Securities who is not entitled to the
benefits of the Shelf Registration Statement because such Holder has not
elected to furnish information to the Company in accordance with Section 3(b)
hereof shall not be entitled to Additional Interest with respect to a Shelf
Registration Default relating to a Shelf Registration Statement.

Anything herein to the contrary notwithstanding, no
Holder who (x) was eligible to exchange such Holder’s outstanding Securities at
the time that the Exchange Offer was pending and consummated and (y) failed to
validly tender such Securities for exchange pursuant to the Exchange Offer
shall be entitled to receive any Additional Interest that would otherwise
accrue subsequent to the date the Exchange Offer is consummated pursuant to
this Section 2(d).

(e)           Without
limiting the remedies available to the Initial Purchasers and the Holders, the
Company and the Guarantors acknowledge that any failure by the Company or the
Guarantors to comply with their obligations under Section 2(a) and Section 2(b)
hereof may result in material irreparable injury to the Initial Purchasers or
the Holders for

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which there is no adequate remedy at law, that it will
not be possible to measure damages for such injuries precisely and that, in the
event of any such failure, the Initial Purchasers or any Holder may obtain such
relief as may be required to specifically enforce the Company’s and the
Guarantors’ obligations under Section 2(a) and Section 2(b) hereof.

(f)            Any
amounts of Additional Interest due pursuant to this Section 2 will be payable
in addition to any other interest payable from time to time with respect to the
Registrable Securities in cash on the interest payment dates specified in the
Indenture (to the holders of record as specified in the Indenture), commencing
with the first such interest payment date occurring after any such Additional
Interest commence to accrue.  The amount
of Additional Interest will be determined in a manner consistent with the
calculation of interest under the Indenture.

3.             Registration
Procedures.  (a) In connection with
their obligations pursuant to Section 2(a) and Section 2(b) hereof, the Company
and the Guarantors shall:

(i)            prepare
and file with the SEC a Registration Statement on the appropriate form under
the Securities Act, which form (x) shall be selected by the Company and the
Guarantors, (y) shall, in the case of a Shelf Registration, be available for
the sale of the Registrable Securities by the selling Holders thereof and (z)
shall comply as to form in all material respects with the requirements of the
applicable form and include all financial statements required by the SEC to be
filed therewith; and use their reasonable best efforts to cause such
Registration Statement to become effective and remain effective for the
applicable period in accordance with Section 2 hereof;

(ii)           prepare
and file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary to keep such Registration Statement
effective for the applicable period in accordance with Section 2 hereof and
cause each Prospectus to be supplemented by any required prospectus supplement
and, as so supplemented, to be filed pursuant to Rule 424 under the Securities
Act; and keep each Prospectus current during the period described in Section
4(3) of and Rule 174 under the Securities Act that is applicable to
transactions by brokers or dealers with respect to the Registrable Securities
or Exchange Securities;

(iii)          in
the case of a Shelf Registration, furnish to each Holder of Registrable
Securities, to counsel for the Initial Purchasers, to counsel for such Holders
(if any has been identified in writing) and to each Underwriter of an Underwritten
Offering of Registrable Securities, if any, without charge, as many copies of
each Prospectus, including each preliminary Prospectus, and any amendment or
supplement thereto, in order to facilitate the sale or other disposition of the
Registrable Securities thereunder; and the Company and the Guarantors consent
to the use of such Prospectus and any amendment or supplement thereto in
accordance with applicable law and this Agreement by each of the Holders of
Registrable Securities and any such Underwriters in connection with the
offering and sale of the Registrable Securities covered by and in the manner
described in such Prospectus or any amendment or supplement thereto in
accordance with applicable law and this Agreement;

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(iv)          use their
reasonable best efforts to register or qualify the Registrable Securities under
all applicable state securities or blue sky laws of such jurisdictions as any
Holder of Registrable Securities covered by a Registration Statement shall
reasonably request in writing by the time the applicable Registration Statement
is declared effective by the SEC; cooperate with such Holders in connection
with any filings required to be made with the National Association of
Securities Dealers, Inc.; and do any and all other acts and things that may be
reasonably necessary or advisable to enable each Holder to complete the
disposition in each such jurisdiction of the Registrable Securities owned by
such Holder; provided that neither the Company nor any Guarantor shall be
required to (1) qualify as a foreign corporation or other entity or as a dealer
in securities in any such jurisdiction where it would not otherwise be required
to so qualify, (2) file any general consent to service of process in any such
jurisdiction or (3) subject itself to taxation in any such jurisdiction if it
is not so subject;

(v)           in the
case of a Shelf Registration, notify each Holder of Registrable Securities,
counsel for such Holders and counsel for the Initial Purchasers promptly and,
if requested by any such Holder or counsel, confirm such advice in writing (1)
when a Registration Statement has become effective and when any post-effective
amendment thereto has been filed and becomes effective, (2) of any request by
the SEC or any state securities authority for amendments and supplements to a
Registration Statement and Prospectus or for additional information after the
Registration Statement has become effective, (3) of the issuance by the SEC or
any state securities authority of any stop order suspending the effectiveness
of a Registration Statement or the initiation of any proceedings for that
purpose, (4) if, between the effective date of a Registration Statement and the
closing of any sale of Registrable Securities covered thereby, the
representations and warranties of the Company or any Guarantor contained in any
underwriting agreement, securities sales agreement or other similar agreement,
if any, relating to an offering of such Registrable Securities cease to be true
and correct in all material respects or if the Company or any Guarantor
receives any notification with respect to the suspension of the qualification
of the Registrable Securities for sale in any jurisdiction or the initiation of
any proceeding for such purpose, (5) of the happening of any event during the
period a Shelf Registration Statement is effective that makes any statement
made in such Registration Statement or the related Prospectus untrue in any
material respect or that requires the making of any changes in such
Registration Statement or Prospectus in order to make the statements therein
not misleading and (6) of any determination by the Company or any Guarantor
that a post-effective amendment to a Registration Statement would be
appropriate;

(vi)          use their
reasonable best efforts to obtain the withdrawal of any order suspending the
effectiveness of a Registration Statement as soon as possible and promptly
provide notice to each Holder of the withdrawal of any such order;

(vii)         in
the case of a Shelf Registration, furnish to each Holder of Registrable
Securities, without charge, at least one conformed copy of each Registration
Statement and any post-effective amendment thereto (without any documents
incorporated therein by reference or exhibits thereto, unless requested);

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(viii)        in
the case of a Shelf Registration, cooperate with the Holders of Registrable
Securities to facilitate the timely preparation and delivery of certificates
representing Registrable Securities to be sold and not bearing any restrictive
legends and enable such Registrable Securities to be issued in such
denominations and registered in such names (consistent with the provisions of
the Indenture) as such Holders may reasonably request at least one Business Day
prior to the closing of any sale of Registrable Securities;

(ix)           in the
case of a Shelf Registration, upon the occurrence of any event contemplated by
Section 3(a)(v)(5) hereof, use their reasonable best efforts to prepare and
file with the SEC a supplement or post-effective amendment to such Shelf Registration
Statement or the related Prospectus or any document incorporated therein by
reference or file any other required document so that, as thereafter delivered
to purchasers of the Registrable Securities, such Prospectus will not contain
any untrue statement of a material fact or omit to state a material fact
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading; and the Company and the Guarantors
shall notify the Holders of Registrable Securities to suspend use of the
Prospectus as promptly as practicable after the occurrence of such an event,
and such Holders hereby agree to suspend use of the Prospectus until the
Company and the Guarantors have amended or supplemented the Prospectus to
correct such misstatement or omission;

(x)            a
reasonable time prior to the filing of any Registration Statement, any
Prospectus, any amendment to a Registration Statement or amendment or
supplement to a Prospectus or of any document that is to be incorporated by
reference into a Registration Statement or a Prospectus after initial filing of
a Registration Statement, provide copies of such document to the Initial
Purchasers and their counsel (and, in the case of a Shelf Registration
Statement, to the Holders of Registrable Securities and their counsel) and make
such of the representatives of the Company and the Guarantors as shall be
reasonably requested by the Initial Purchasers or their counsel (and, in the
case of a Shelf Registration Statement, the Holders of Registrable Securities
or their counsel) available for discussion of such document; and the Company
and the Guarantors shall not, at any time after initial filing of a
Registration Statement, file any Prospectus, any amendment of or supplement to a
Registration Statement or a Prospectus, or any document that is to be
incorporated by reference into a Registration Statement or a Prospectus, of
which the Initial Purchasers and their counsel (and, in the case of a Shelf
Registration Statement, the Holders of Registrable Securities and their
counsel) shall not have previously been advised and furnished a copy or to
which the Initial Purchasers or their counsel (and, in the case of a Shelf
Registration Statement, the Holders of Registrable Securities or their counsel)
shall reasonably object within 48 hours of receipt;

(xi)           obtain a
CUSIP number for all Exchange Securities or Registrable Securities, as the case
may be, not later than the effective date of a Registration Statement;

(xii)          cause
the Indenture to be qualified under the Trust Indenture Act in connection with
the registration of the Exchange Securities or Registrable Securities, as

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the case may be; cooperate with the Trustee and the
Holders to effect such changes to the Indenture as may be required for the
Indenture to be so qualified in accordance with the terms of the Trust
Indenture Act; and execute, and use their reasonable best efforts to cause the
Trustee to execute, all documents as may be required to effect such changes and
all other forms and documents required to be filed with the SEC to enable the
Indenture to be so qualified in a timely manner;

(xiii)         in
the case of a Shelf Registration, make available for inspection by a
representative of the Holders of a majority in principal amount of the
Registrable Securities being sold (an “Inspector”), any Underwriter
participating in any disposition pursuant to such Shelf Registration Statement,
any attorneys and accountants designated by the Holders of a majority in
principal amount of Registrable Securities being sold and any attorneys and
accountants designated by such Underwriter, at reasonable times and in a
reasonable manner, all pertinent financial and other records, documents and
properties of the Company and the Guarantors, and cause the respective
officers, directors and employees of the Company and the Guarantors to supply
all information reasonably requested by any such Inspector, Underwriter,
attorney or accountant in connection with a Shelf Registration Statement;
provided that if any such information is identified by the Company or any
Guarantor as being confidential or proprietary, each Person receiving such
information shall take such actions as are reasonably necessary to protect the
confidentiality of such information (including such action as may be necessary
to ensure that such disclosures are made in a manner compliant with the
requirements of Regulation FD) to the extent such action (other than such
action necessary to ensure that such disclosures are made in a manner compliant
with the requirements of Regulation FD) is otherwise not inconsistent with, an
impairment of or in derogation of the rights and interests of any Inspector,
Holder or Underwriter;

(xiv)        in
the case of a Shelf Registration, use their reasonable best efforts to cause
all Registrable Securities to be listed on any securities exchange or any
automated quotation system on which similar securities issued or guaranteed by
the Company or any Guarantor are then listed if requested by the Majority
Holders, to the extent such Registrable Securities satisfy applicable listing
requirements;

(xv)         if
reasonably requested by any Holder of Registrable Securities covered by a Shelf
Registration Statement, promptly include in a Prospectus supplement or
post-effective amendment such information with respect to such Holder as such
Holder reasonably requests to be included therein and make all required filings
of such Prospectus supplement or such post-effective amendment as soon as the
Company has received notification of the matters to be so included in such
filing; provided that in the case of amendments (but not supplements) to the
Shelf Registration Statement and the related Prospectus, the Company and
Guarantors shall not be required to amend the Shelf Registration Statement and
related Prospectus to add additional Holders more than three times per calendar
quarter; and

(xvi)        in
the case of a Shelf Registration, enter into such customary agreements and take
all such other reasonable actions in connection therewith (including those
requested by the Holders of a majority in principal amount of the Registrable
Securities

 12
 

 

being sold) in order to expedite or facilitate the
disposition of such Registrable Securities including, but not limited to, not
more than one Underwritten Offering and in such connection, (1) to the extent
possible, make such representations and warranties to the Holders and any
Underwriters of such Registrable Securities with respect to the business of the
Company and its subsidiaries and the Registration Statement, Prospectus and
documents incorporated by reference or deemed incorporated by reference, if
any, in each case, in form, substance and scope as are customarily made by
issuers to underwriters in underwritten offerings, (2) obtain opinions of
counsel to the Company and the Guarantors (which counsel and opinions, in form,
scope and substance, shall be reasonably satisfactory to the Holders and such
Underwriters and their respective counsel) addressed to each selling Holder and
Underwriter of Registrable Securities, covering the matters customarily covered
in opinions requested in underwritten offerings, (3) obtain “comfort” letters
from the independent certified public accountants of the Company and the
Guarantors (and, if necessary, any other certified public accountant of any
subsidiary of the Company or any Guarantor, or of any business acquired by the
Company or any Guarantor for which financial statements and financial data are
or are required to be included in the Registration Statement) addressed to each
selling Holder and Underwriter of Registrable Securities, such letters to be in
customary form and covering matters of the type customarily covered in “comfort”
letters in connection with underwritten offerings and (4) deliver such
documents and certificates as may be reasonably requested by the Holders of a
majority in principal amount of the Registrable Securities being sold or the
Underwriters, and which are customarily delivered in underwritten offerings, to
evidence the continued validity of the representations and warranties of the
Company and the Guarantors made pursuant to clause (1) above and to evidence
compliance with any customary conditions contained in an underwriting
agreement.

(b)           In the
case of a Shelf Registration Statement, the Company may require each Holder of
Registrable Securities, as a condition to the inclusion of such Holder’s
Registrable Securities in a Shelf Registration Statement, to furnish to the
Company such information in writing within 20 days after receipt of a request
therefore regarding such Holder and the proposed disposition by such Holder of
such Registrable Securities as the Company and the Guarantors may from time to
time reasonably request in writing.  In
addition, each selling Holder agrees to promptly furnish additional information
required to be disclosed in order to make the information previously furnished
to the Company not materially misleading. 
For so long as the Holder fails to furnish such information in a
reasonably timely manner after receiving the request, the Company and the
Guarantors shall (i) have no obligation under this Agreement to provide for the
disposition of such Holder’s Registrable Securities in the Shelf Registration
Statement in respect to which such information was requested, (ii) not be
required to provide for the disposition of such Holder’s Registrable Securities
in any post-effective amendment to such Shelf Registration Statement or any
future Shelf Registration Statement that is not otherwise required to be filed
and (iii) not be required to pay any Additional Interest to such Holder as
provided in Section 2(d) hereof.

(c)           In the
case of a Shelf Registration Statement, each Holder of Registrable Securities
agrees that, upon receipt of any notice from the Company and the Guarantors of the
happening of any event of the kind described in Section 3(a)(v)(3) or
3(a)(v)(5)

 13
 

 

hereof, such Holder will forthwith discontinue
disposition of Registrable Securities pursuant to the Shelf Registration
Statement until such Holder’s receipt of the copies of the supplemented or
amended Prospectus contemplated by Section 3(a)(ix) hereof and, if so directed
by the Company and the Guarantors, such Holder will deliver to the Company and
the Guarantors all copies in its possession, other than permanent file copies
then in such Holder’s possession, of the Prospectus covering such Registrable
Securities that is current at the time of receipt of such notice.  Notwithstanding anything herein to the
contrary, the Company and the Guarantors may allow the Shelf Registration
Statement to cease to be effective if the board of directors of the Company
determines in good faith (and not for the purpose of avoiding or limiting the
obligations of the Company or Guarantors under this Agreement) that it is in
the best interests of the Company not to disclose the existence of facts
surrounding any proposed or pending material corporate transaction involving
the Company or the Guarantors, and the Company notifies the Holders of
Registrable Securities promptly after such board of directors makes such
determination; provided, however, that the period referred to in section 2(b)
during which the Company and the Guarantors agree to use their reasonable best
efforts to keep such Shelf Registration Statement effective shall be extended by
the number of days during which such Shelf Registration Statement was not
effective pursuant to the foregoing provision.

(d)           If the
Company and the Guarantors shall give any notice pursuant to Section 3(c)
hereof to suspend the disposition of Registrable Securities pursuant to a Shelf
Registration Statement, the Company and the Guarantors shall extend the period
during which such Shelf Registration Statement shall be maintained effective
pursuant to this Agreement by the number of days during the period from and
including the date of the giving of such notice to and including the date when
the Holders of such Registrable Securities shall have received copies of the
supplemented or amended Prospectus necessary to resume such dispositions. The
Company and the Guarantors may give any such notice only twice during any
365-day period, such suspensions shall not exceed 45 days for each suspension
and 75 days in the aggregate during any 365-day period.

(e)           The
Holders of Registrable Securities covered by a Shelf Registration Statement who
desire to do so may sell such Registrable Securities in an Underwritten
Offering.  In any such Underwritten
Offering, the investment bank or investment banks and manager or managers (each
an “Underwriter”) that will administer the offering will be selected by the
Holders of a majority in principal amount of the Registrable Securities
included in such offering.

 14
 

 

4.             Participation
of Broker-Dealers in Exchange Offer. 
(a)  The Staff has taken the
position that any broker-dealer that receives Exchange Securities for its own
account in the Exchange Offer in exchange for Securities that were acquired by
such broker-dealer as a result of market-making or other trading activities (a “Participating
Broker-Dealer”) may be deemed to be an “underwriter” within the meaning of the
Securities Act and must deliver a prospectus meeting the requirements of the
Securities Act in connection with any resale of such Exchange Securities.

The Company and the Guarantors understand that it is
the Staff’s position that if the Prospectus contained in the Exchange Offer
Registration Statement includes a plan of distribution containing a statement
to the above effect and the means by which Participating Broker-Dealers may
resell the Exchange Securities, without naming the Participating Broker-Dealers
or specifying the amount of Exchange Securities owned by them, such Prospectus
may be delivered by Participating Broker-Dealers to satisfy their prospectus
delivery obligation under the Securities Act in connection with resales of
Exchange Securities for their own accounts, so long as the Prospectus otherwise
meets the requirements of the Securities Act.

(b)           In light
of the above, and notwithstanding the other provisions of this Agreement, the
Company and the Guarantors agree to amend or supplement the Prospectus
contained in the Exchange Offer Registration Statement until the earlier of (i)
such time as the Participating Broker-Dealers shall have disposed of the
Registrable Securities and (ii) 180 days after the closing of the Exchange
Offer (as such period may be extended pursuant to Section 3(d) of this
Agreement), if requested by the Initial Purchasers or by one or more
Participating Broker-Dealers, in order to expedite or facilitate the
disposition of any Exchange Securities by Participating Broker-Dealers
consistent with the positions of the Staff recited in Section 4(a) above.  The Company and the Guarantors further agree
that Participating Broker-Dealers shall be authorized to deliver such
Prospectus during such period in connection with the resales contemplated by
this Section 4.

(c)           The
Initial Purchasers shall have no liability to the Company, any Guarantor or any
Holder with respect to any request that they may make pursuant to Section 4(b)
above.

5.             Indemnification
and Contribution.  (a)  The Company and each Guarantor, jointly and
severally, agree to indemnify and hold harmless each Initial Purchaser and each
Holder, their respective affiliates, directors and officers and each Person, if
any, who controls any Initial Purchaser or any Holder within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act, from and
against any and all losses, claims, damages and liabilities (including, without
limitation, reasonable legal fees and other expenses incurred in connection
with any suit, action or proceeding or any claim asserted, as such fees and
expenses are incurred), that arise out of, or are based upon, any untrue
statement or alleged untrue statement of a material fact contained in any Registration
Statement or any Prospectus or any omission or alleged omission to state
therein a material fact required to be stated therein or necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not

 15
 

 

misleading, except insofar as such losses, claims,
damages or liabilities arise out of, or are based upon, any untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in
conformity with any information relating to any Initial Purchaser or
information relating to any Holder furnished to the Company in writing through
JPMorgan or any selling Holder expressly for use therein; provided, that the
foregoing indemnity agreement shall not inure to the benefit of any Initial Purchaser
or Holder from whom the person asserting any such losses, claims, damages or
liabilities purchased Securities, or any person controlling such Initial
Purchaser or Holder, where it shall have been determined by a court of
competent jurisdiction by final and nonappealable judgment that (i) prior to
the time when sales of the Securities were first made (the “Time of Sale”), the
Company had notified such Initial Purchaser or Holder that the Registration
Statement or Prospectus contained an untrue statement of material fact or
omitted to state therein a material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading, (ii) such untrue statement or omission of a material fact was corrected
in a subsequent amendment or supplement to the Registration Statement or
Prospectus (the “Subsequent Time of Sale Information”) and such Subsequent Time
of Sale Information was provided to such Initial Purchaser or Holder
sufficiently in advance of the Time of Sale so that such Subsequent Time of
Sale Information could have been provided to such person prior to the Time of
Sale, (iii) the Initial Purchaser or Holder did not send or give such
Subsequent Time of Sale Information to such person at or prior to the Time of
Sale of the Securities to such person (other than in circumstances in which
such information was not required to be delivered pursuant to Rule 172 of the
Securities Act), and (iv) such loss, claim, damage or liability would not have
occurred had the Initial Purchaser or Holder delivered such Subsequent Time of
Sale Information to such person.  In
connection with any Underwritten Offering permitted by Section 3, the Company
and the Guarantors, jointly and severally, will also indemnify the
Underwriters, if any, selling brokers, dealers and similar securities industry
professionals participating in the distribution, their respective affiliates
and each Person who controls such Persons (within the meaning of the Securities
Act and the Exchange Act) to the same extent as provided above with respect to
the indemnification of the Holders, if requested in connection with any
Registration Statement.

(b)           Each
Holder agrees, severally and not jointly, to indemnify and hold harmless the
Company, the Guarantors, the Initial Purchasers and the other selling Holders,
the directors of the Company and the Guarantors, each officer of the Company
and the Guarantors who signed the Registration Statement and each Person, if
any, who controls the Company, the Guarantors, any Initial Purchaser and any
other selling Holder within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act to the same extent as the indemnity set forth in
paragraph (a) above, but only with respect to any losses, claims, damages or
liabilities that arise out of, or are based upon, any untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in
conformity with any information relating to such Holder furnished to the
Company in writing by such Holder expressly for use in any Registration
Statement and any Prospectus.

 16
 

 

(c)           If any
suit, action, proceeding (including any governmental or regulatory
investigation), claim or demand shall be brought or asserted against any Person
in respect of which indemnification may be sought pursuant to either paragraph
(a) or (b) above, such Person (the “Indemnified Person”) shall promptly notify
the Person against whom such indemnification may be sought (the “Indemnifying
Person”) in writing; provided that the failure to notify the Indemnifying
Person shall not relieve it from any liability that it may have under this
Section 5 except to the extent that it has been materially prejudiced (through
the forfeiture of substantive rights or defenses) by such failure; and
provided, further, that the failure to notify the Indemnifying Person shall not
relieve it from any liability that it may have to an Indemnified Person
otherwise than under this Section 5.  If
any such proceeding shall be brought or asserted against an Indemnified Person
and it shall have notified the Indemnifying Person thereof, the Indemnifying
Person shall retain counsel reasonably satisfactory to the Indemnified Person
to represent the Indemnified Person and any others entitled to indemnification
pursuant to this Section 5 that the Indemnifying Person may designate in such
proceeding and shall pay the fees and expenses of such counsel related to such
proceeding, as incurred.  In any such
proceeding, any Indemnified Person shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Person unless (i) the Indemnifying Person and the Indemnified
Person shall have mutually agreed to the contrary; (ii) the Indemnifying Person
has failed within a reasonable time to retain counsel reasonably satisfactory
to the Indemnified Person; (iii) the Indemnified Person shall have reasonably
concluded that there may be legal defenses available to it that are different
from or in addition to those available to the Indemnifying Person; or (iv) the
named parties in any such proceeding (including any impleaded parties) include
both the Indemnifying Person and the Indemnified Person and representation of
both parties by the same counsel would be inappropriate due to actual or
potential differing interests between them. 
It is understood and agreed that the Indemnifying Person shall not, in
connection with any proceeding or related proceeding in the same jurisdiction,
be liable for the reasonable fees and expenses of more than one separate firm
(in addition to any local counsel) for all Indemnified Persons, and that all
such fees and expenses shall be reimbursed as they are incurred.  Any such separate firm (x) for any Initial
Purchaser, its affiliates, directors and officers and any control Persons of
such Initial Purchaser shall be designated in writing by JPMorgan, (y) for any
Holder, its directors and officers and any control Persons of such Holder shall
be designated in writing by the Majority Holders and (z) in all other cases
shall be designated in writing by the Company. 
The Indemnifying Person shall not be liable for any settlement of any
proceeding effected without its written consent, but if settled with such
consent or if there be a final judgment for the plaintiff, the Indemnifying
Person agrees to indemnify each Indemnified Person from and against any loss or
liability by reason of such settlement or judgment.  Notwithstanding the foregoing sentence, if at
any time an Indemnified Person shall have requested that an Indemnifying Person
reimburse the Indemnified Person for fees and expenses of counsel as
contemplated by this paragraph, the Indemnifying Person shall be liable for any
settlement of any proceeding effected without its written consent if (i) such
settlement is entered into more than 30 days after receipt by the Indemnifying
Person of such request and (ii) the Indemnifying Person shall not have
reimbursed the Indemnified Person in accordance with such request prior to the
date of such settlement.

 17
 

 

No Indemnifying Person shall, without the written
consent of the Indemnified Person, effect any settlement of any pending or
threatened proceeding in respect of which any Indemnified Person is or could
have been a party and indemnification could have been sought hereunder by such
Indemnified Person, unless such settlement (A) includes an unconditional
release of such Indemnified Person, in form and substance reasonably
satisfactory to such Indemnified Person, from all liability on claims that are
the subject matter of such proceeding and (B) does not include any statement as
to or any admission of fault, culpability or a failure to act by or on behalf
of any Indemnified Person.

(d)           If the
indemnification provided for in paragraphs (a) and (b) above is unavailable to
an Indemnified Person or insufficient in respect of any losses, claims, damages
or liabilities referred to therein, then each Indemnifying Person under such
paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall
contribute to the amount paid or payable by such Indemnified Person as a result
of such losses, claims, damages or liabilities (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company and the
Guarantors from the offering of the Securities and the Exchange Securities, on
the one hand, and by the Holders from receiving Securities or Exchange
Securities registered under the Securities Act, on the other hand, or (ii) if
the allocation provided by clause (i) is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) but also the relative fault of the Company and the
Guarantors on the one hand and the Holders on the other in connection with the
statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations.  The relative fault of the Company and the
Guarantors on the one hand and the Holders on the other shall be determined by
reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company and the Guarantors
or by the Holders and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.

(e)           The
Company, the Guarantors and the Holders agree that it would not be just and
equitable if contribution pursuant to this Section 5 were determined by pro
rata allocation (even if the Holders were treated as one entity for such
purpose) or by any other method of allocation that does not take account of the
equitable considerations referred to in paragraph (d) above.  The amount paid or payable by an Indemnified
Person as a result of the losses, claims, damages and liabilities referred to
in paragraph (d) above shall be deemed to include, subject to the limitations
set forth above, any legal or other expenses incurred by such Indemnified
Person in connection with any such action or claim.  Notwithstanding the provisions of this
Section 5, in no event shall a Holder be required to contribute any amount in
excess of the amount by which the total price at which the Securities or
Exchange Securities sold by such Holder exceeds the amount of any damages that
such Holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission.  No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.

 18
 

 

(f)            The
remedies provided for in this Section 5 are not exclusive and shall not limit
any rights or remedies that may otherwise be available to any Indemnified
Person at law or in equity.

(g)           The
indemnity and contribution provisions contained in this Section 5 shall remain
operative and in full force and effect regardless of (i) any termination of
this Agreement, (ii) any investigation made by or on behalf of the Initial
Purchasers or any Holder or any Person controlling any Initial Purchaser or any
Holder, or by or on behalf of the Company or the Guarantors or the officers or
directors of or any Person controlling the Company or the Guarantors, (iii)
acceptance of any of the Exchange Securities and (iv) any sale of Registrable
Securities pursuant to a Shelf Registration Statement.

6.             General.

(a)           No Inconsistent Agreements.   The Company and the Guarantors represent,
warrant and agree that (i) the rights granted to the Holders hereunder do not
in any way conflict with and are not inconsistent with the rights granted to
the holders of any other outstanding securities issued or guaranteed by the
Company or any Guarantor under any other agreement and (ii) neither the Company
nor any Guarantor has entered into, or on or after the date of this Agreement
will enter into, any agreement that is inconsistent with the rights granted to
the Holders of Registrable Securities in this Agreement or otherwise conflicts
with the provisions hereof.

(b)           Amendments and Waivers.   The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given unless the Company and the Guarantors have obtained the written consent
of Holders of at least a majority in aggregate principal amount of the
outstanding Registrable Securities affected by such amendment, modification,
supplement, waiver or consent; provided that no amendment, modification,
supplement, waiver or consent to any departure from the provisions of Section 5
hereof shall be effective as against any Holder of Registrable Securities
unless consented to in writing by such Holder. 
Any amendments, modifications, supplements, waivers or consents pursuant
to this Section 6(b) shall be by a writing executed by each of the parties
hereto.

(c)           Notices. 
All notices and other communications provided for or permitted hereunder
shall be made in writing by hand-delivery, registered first-class mail, telex,
telecopier, or any courier guaranteeing overnight delivery (i) if to a Holder,
at the most current address given by such Holder to the Company by means of a
notice given in accordance with the provisions of this Section 6(c), which
address initially is, with respect to the Initial Purchasers, the address set
forth in the Purchase Agreement; (ii) if to the Company and the Guarantors,
initially at the Company’s address set forth in the Purchase Agreement and
thereafter at such other address, notice of which is given in accordance with
the provisions of this Section 6(c); and (iii) 
to such other persons at their respective addresses as provided in the
Purchase Agreement and thereafter at such other address, notice of which is
given in accordance with the provisions of this Section 6(c).  All such notices and communications shall be
deemed to have been duly

 19
 

 

given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when answered back, if telexed; when receipt is
acknowledged, if telecopied; and on the next Business Day if timely delivered
to an air courier guaranteeing overnight delivery.  Copies of all such notices, demands or other
communications shall be concurrently delivered by the Person giving the same to
the Trustee, at the address specified in the Indenture.

(d)           Successors and Assigns. This Agreement
shall inure to the benefit of and be binding upon the successors, assigns and
transferees of each of the parties, including, without limitation and without
the need for an express assignment, subsequent Holders; provided that nothing
herein shall be deemed to permit any assignment, transfer or other disposition
of Registrable Securities in violation of the terms of the Purchase Agreement
or the Indenture.  If any transferee of
any Holder shall acquire Registrable Securities in any manner, whether by
operation of law or otherwise, such Registrable Securities shall be held
subject to all the terms of this Agreement, and by taking and holding such
Registrable Securities such Person shall be conclusively deemed to have agreed
to be bound by and to perform all of the terms and provisions of this Agreement
and such Person shall be entitled to receive the benefits hereof.  The Initial Purchasers (in their capacity as
Initial Purchasers) shall have no liability or obligation to the Company or the
Guarantors with respect to any failure by a Holder to comply with, or any
breach by any Holder of, any of the obligations of such Holder under this
Agreement.

(e)           Third Party Beneficiaries.  Each Holder shall be a third party
beneficiary to the agreements made hereunder between the Company and the
Guarantors, on the one hand, and the Initial Purchasers, on the other hand, and
shall have the right to enforce such agreements directly to the extent it deems
such enforcement necessary or advisable to protect its rights or the rights of
other Holders hereunder.

(f)            Counterparts. This Agreement may be
executed in any number of counterparts and by the parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

(g)           Headings. 
The headings in this Agreement are for convenience of reference only,
are not a part of this Agreement and shall not limit or otherwise affect the
meaning hereof.

(h)           Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York.

(i)            Miscellaneous.  This Agreement contains the entire agreement
between the parties relating to the subject matter hereof and supersedes all
oral statements and prior writings with respect thereto.  If any term, provision, covenant or
restriction contained in this Agreement is held by a court of competent
jurisdiction to be invalid, void or unenforceable or against public policy, the
remainder of the terms, provisions, covenants and restrictions contained herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated.  The Company, the
Guarantors and the

 20

 

Initial Purchasers shall endeavor in good faith
negotiations to replace the invalid, void or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to
that of the invalid, void or unenforceable provisions.

IN WITNESS WHEREOF, the parties have executed this
Agreement as of the date first written above.

	
  

  	
  INDALEX HOLDING CORP.,

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Timothy R.J. Stubbs

  	
   

  
	
   

  	
   

  	
  Name: Timothy R.J.
  Stubbs

  
	
   

  	
   

  	
  Title:   President
  and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INDALEX HOLDINGS FINANCE, INC.,

  
	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Timothy R.J. Stubbs

  	
   

  
	
   

  	
   

  	
  Name: Timothy R.J.
  Stubbs

  
	
   

  	
   

  	
  Title:   President
  and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  INDALEX INC.,

  
	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Timothy R.J. Stubbs

  	
   

  
	
   

  	
   

  	
  Name: Timothy R.J.
  Stubbs

  
	
   

  	
   

  	
  Title:   President
  and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DOLTON ALUMINUM COMPANY, INC.,

  
	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Timothy R.J. Stubbs

  	
   

  
	
   

  	
   

  	
  Name: Timothy R.J.
  Stubbs

  
	
   

  	
   

  	
  Title:   President
  and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CARADON LEBANON INC.,

  
	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Timothy R.J. Stubbs

  	
   

  
	
   

  	
   

  	
  Name: Timothy R.J.
  Stubbs

  
	
   

  	
   

  	
  Title:   President
  and Chief Executive Officer

  

 21
 

 

 

	
  Confirmed and accepted as of the date first
  above written:

  
	
   

  
	
  J.P. MORGAN SECURITIES INC.

  
	
   

  
	
  For itself and on behalf of the

  
	
   several Initial Purchasers

  
	
   

  
	
  By

  	
    /s/ Benjamin
  Ben-Attar

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  

 

 22
 

 

Schedule
1

Guarantors

Indalex Holdings Finance,
Inc., a Delaware corporation

Indalex Inc., a Delaware
corporation

Dolton Aluminum Company,
Inc., a Wisconsin corporation

Caradon Lebanon Inc., a Tennessee corporation

 23Exhibit
10.1

EXECUTION COPY

 

 

CREDIT AGREEMENT

dated as of

February 2, 2006,

among

INDALEX HOLDINGS FINANCE,
INC.,

INDALEX HOLDING CORP.,

as Parent Borrower,

6461948 CANADA INC.,

as Canadian Subsidiary Borrower,

The Subsidiary Loan Parties Party Hereto,

The Lenders Party Hereto

and

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

J.P. MORGAN SECURITIES INC.,

as Sole Bookrunner and Sole Lead Arranger

 

[CS&M Ref. 6701-504]

TABLE OF
CONTENTS

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  
	
   

  	
   

  	
   

  
	
  Definitions

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  Defined Terms

  	
  1

  
	
  SECTION 1.02.

  	
  Classification of Loans and Borrowings

  	
  45

  
	
  SECTION 1.03.

  	
  Terms Generally

  	
  45

  
	
  SECTION 1.04.

  	
  Accounting Terms; GAAP

  	
  45

  
	
  SECTION 1.05.

  	
  Currency Translation

  	
  46

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
   

  	
   

  	
   

  
	
  The Credits

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  Commitments

  	
  47

  
	
  SECTION 2.02.

  	
  Loans and Borrowings

  	
  48

  
	
  SECTION 2.03.

  	
  Requests for Revolving Borrowings

  	
  49

  
	
  SECTION 2.04.

  	
  Swingline Loans

  	
  50

  
	
  SECTION 2.05.

  	
  Letters of Credit

  	
  51

  
	
  SECTION 2.06.

  	
  Canadian Bankers’ Acceptances

  	
  56

  
	
  SECTION 2.07.

  	
  Funding of Borrowings

  	
  58

  
	
  SECTION 2.08.

  	
  Interest Elections

  	
  59

  
	
  SECTION 2.09.

  	
  Termination and Reduction of Commitments

  	
  61

  
	
  SECTION 2.10.

  	
  Repayment of Loans and B/As; Evidence of Debt

  	
  62

  
	
  SECTION 2.11.

  	
  Prepayments

  	
  63

  
	
  SECTION 2.12.

  	
  Fees

  	
  64

  
	
  SECTION 2.13.

  	
  Interest

  	
  65

  
	
  SECTION 2.14.

  	
  Alternate Rate of Interest

  	
  66

  
	
  SECTION 2.15.

  	
  Increased Costs

  	
  67

  
	
  SECTION 2.16.

  	
  Break Funding Payments

  	
  67

  
	
  SECTION 2.17.

  	
  Taxes

  	
  68

  
	
  SECTION 2.18.

  	
  Payments Generally; Pro Rata Treatment; Sharing of
  Set-offs

  	
  70

  
	
  SECTION 2.19.

  	
  Mitigation Obligations; Replacement of Lenders

  	
  72

  
	
  SECTION 2.20.

  	
  Returned Payments

  	
  72

  
	
  SECTION 2.21.

  	
  Revolving Commitment Increases

  	
  73

  
	
  SECTION 2.22.

  	
  Delivery of a Borrowing Base Certificate

  	
  74

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  	
   

  
	
  Representations
  and Warranties

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Organization; Powers

  	
  74

  
	
  SECTION 3.02.

  	
  Authorization; Enforceability

  	
  74

  
	
  SECTION 3.03.

  	
  Governmental Approvals; No Conflicts

  	
  75

  
	
  SECTION 3.04.

  	
  Financial Condition; No Material Adverse Change

  	
  75

  

 

 

 

	
  SECTION 3.05.

  	
  Properties

  	
  76

  
	
  SECTION 3.06.

  	
  Litigation and Environmental Matters

  	
  76

  
	
  SECTION 3.07.

  	
  Compliance with Laws and Agreements

  	
  76

  
	
  SECTION 3.08.

  	
  Investment and Holding Company Status

  	
  77

  
	
  SECTION 3.09.

  	
  Taxes

  	
  77

  
	
  SECTION 3.10.

  	
  ERISA

  	
  77

  
	
  SECTION 3.11.

  	
  Disclosure

  	
  78

  
	
  SECTION 3.12.

  	
  Solvency

  	
  78

  
	
  SECTION 3.13.

  	
  Insurance

  	
  78

  
	
  SECTION 3.14.

  	
  Capitalization and Subsidiaries

  	
  79

  
	
  SECTION 3.15.

  	
  Labor Disputes

  	
  79

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  	
   

  	
   

  
	
  Conditions

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  Effective Date

  	
  79

  
	
  SECTION 4.02.

  	
  Each Credit Event

  	
  83

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
   

  	
   

  	
   

  
	
  Affirmative
  Covenants

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
  Financial Statements; Borrowing Base and Other
  Information

  	
  84

  
	
  SECTION 5.02.

  	
  Notices of Material Events

  	
  86

  
	
  SECTION 5.03.

  	
  Existence

  	
  87

  
	
  SECTION 5.04.

  	
  Payment of Obligations

  	
  87

  
	
  SECTION 5.05.

  	
  Maintenance of Properties

  	
  87

  
	
  SECTION 5.06.

  	
  Books and Records; Inspection Rights

  	
  87

  
	
  SECTION 5.07.

  	
  Compliance with Laws

  	
  88

  
	
  SECTION 5.08.

  	
  Use of Proceeds

  	
  88

  
	
  SECTION 5.09.

  	
  Insurance

  	
  89

  
	
  SECTION 5.10.

  	
  Depository Banks

  	
  89

  
	
  SECTION 5.11.

  	
  Additional Collateral; Further Assurances

  	
  89

  
	
  SECTION 5.12.

  	
  Purchase Price Adjustment

  	
  90

  
	
  SECTION 5.13.

  	
  Post-Closing Matters

  	
  90

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  	
   

  	
   

  
	
  Negative
  Covenants

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  Indebtedness

  	
  91

  
	
  SECTION 6.02.

  	
  Liens

  	
  94

  
	
  SECTION 6.03.

  	
  Fundamental Changes

  	
  96

  
	
  SECTION 6.04.

  	
  Investments, Loans, Advances, Guarantees and
  Acquisitions

  	
  97

  
	
  SECTION 6.05.

  	
  Asset Sales

  	
  99

  
	
  SECTION 6.06.

  	
  Sale and Leaseback Transactions

  	
  101

  
	
  SECTION 6.07.

  	
  Swap Agreements

  	
  101

  
	
  SECTION 6.08.

  	
  Restricted Payments; Certain Payments of
  Indebtedness

  	
  101

  
	
  SECTION 6.09.

  	
  Transactions with Affiliates

  	
  103

  
	
  SECTION 6.10.

  	
  Restrictive Agreements

  	
  104

  

 

 ii
 

 

 

	
  SECTION 6.11.

  	
  Amendment of Material Documents

  	
  104

  
	
  SECTION 6.12.

  	
  Fixed Charge Coverage Ratio

  	
  104

  
	
  SECTION 6.13.

  	
  Certain Equity Securities

  	
  105

  
	
  SECTION 6.14.

  	
  Changes in Fiscal Periods

  	
  105

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  	
   

  	
   

  
	
  Events of
  Default

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
   

  	
   

  	
   

  
	
  The
  Administrative Agent

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  
	
   

  	
   

  	
   

  
	
  Miscellaneous

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
  Notices

  	
  110

  
	
  SECTION 9.02.

  	
  Waivers; Amendments

  	
  111

  
	
  SECTION 9.03.

  	
  Expenses; Indemnity; Damage Waiver

  	
  114

  
	
  SECTION 9.04.

  	
  Successors and Assigns

  	
  116

  
	
  SECTION 9.05.

  	
  Survival

  	
  120

  
	
  SECTION 9.06.

  	
  Counterparts; Integration; Effectiveness

  	
  120

  
	
  SECTION 9.07.

  	
  Severability

  	
  120

  
	
  SECTION 9.08.

  	
  Right of Setoff

  	
  120

  
	
  SECTION 9.09.

  	
  Governing Law; Jurisdiction; Consent to Service of
  Process

  	
  121

  
	
  SECTION 9.10.

  	
  WAIVER OF JURY TRIAL

  	
  121

  
	
  SECTION 9.11.

  	
  Headings

  	
  121

  
	
  SECTION 9.12.

  	
  Confidentiality

  	
  122

  
	
  SECTION 9.13.

  	
  Several Obligations; Nonreliance; Violation of Law

  	
  122

  
	
  SECTION 9.14.

  	
  USA PATRIOT Act

  	
  122

  
	
  SECTION 9.15.

  	
  Disclosure

  	
  122

  
	
  SECTION 9.16.

  	
  Appointment for Perfection

  	
  123

  
	
  SECTION 9.18.

  	
  Quebec

  	
  123

  
	
  SECTION 9.19.

  	
  Judgment Currency

  	
  124

  
	
  SECTION 9.20.

  	
  Obligations of the Canadian Subsidiary Borrower and
  Foreign Subsidiary Loan Parties

  	
  124

  
	
  SECTION 9.21.

  	
  Residency for Tax Purposes

  	
  124

  
	
  SECTION 9.22.

  	
  Intercreditor Agreement

  	
  125

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  
	
   

  	
   

  	
   

  
	
  Loan Guaranty

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01.

  	
  Guaranty

  	
  125

  
	
  SECTION 10.02.

  	
  Guaranty of Payment

  	
  126

  
	
  SECTION 10.03.

  	
  No Discharge or Diminishment of Loan Guaranty

  	
  126

  
	
  SECTION 10.04.

  	
  Defenses Waived

  	
  127

  
	
  SECTION 10.05.

  	
  Rights of Subrogation

  	
  127

  

 

 iii
 

 

 

	
  SECTION 10.06.

  	
  Reinstatement; Stay of Acceleration

  	
  127

  
	
  SECTION 10.07.

  	
  Information

  	
  127

  
	
  SECTION 10.08.

  	
  Taxes

  	
  127

  
	
  SECTION 10.09.

  	
  Maximum Liability

  	
  128

  
	
  SECTION 10.10.

  	
  Contribution

  	
  128

  
	
  SECTION 10.11.

  	
  Liability Cumulative

  	
  129

  

 

SCHEDULES:

Commitment Schedule

Schedule 1.01 – Eligible Machinery and Equipment

Schedule 1.02 – Eligible Real Property 

Schedule 1.03 – Mortgaged Properties

Schedule 1.04 – Co-Investors

Schedule 1.05 – Fronting Co-Investors

Schedule 3.03 – No Conflicts

Schedule 3.05(a) – Real Property

Schedule 3.05(b) – Intellectual Property

Schedule 3.06 – Disclosed Matters

Schedule 3.09 – Taxes

Schedule 3.10(b) – Canadian Pension Plans

Schedule 3.13 – Insurance

Schedule 3.14 – Capitalization and Subsidiaries 

Schedule 6.01 – Existing Indebtedness

Schedule 6.02 – Existing Liens

Schedule 6.04 – Existing Investments

Schedule 6.09 – Transactions with Affiliates

Schedule 6.10 – Existing Restrictions

EXHIBITS:

Exhibit A – Form of Assignment and Assumption

Exhibit B-1 – Form of Opinion of Kirkland & Ellis LLP

Exhibit B-2 – Form of Opinion of Blake, Cassels & Graydon LLP

Exhibit B-3 – Form of Opinion of Allen & Overy LLP

Exhibit C – Form of Borrowing Base Certificate

Exhibit D – Form of Compliance Certificate

Exhibit E – Joinder Agreement

Exhibit F-1 – Form of Domestic Perfection Certificate

Exhibit F-2 – Form of Canadian Perfection Certificate

Exhibit G-1 – Form of Domestic Security Agreement

Exhibit G-2 – Form of Canadian Security Agreement

Exhibit G-3 – Form of U.K. Charge of Shares

Exhibit H – Form of Intercreditor Agreement

 iv

 

CREDIT AGREEMENT dated as of February 2, 2006
(as it may be amended or modified from time to time, this “Agreement”),
among INDALEX HOLDINGS FINANCE, INC., a Delaware corporation (“Holdings”),
INDALEX HOLDING CORP., a Delaware corporation and a wholly-owned subsidiary of
Holdings (the “Parent Borrower”), 6461948 CANADA INC., a Canadian
corporation and a wholly-owned subsidiary of the Parent Borrower (the “Canadian
Subsidiary Borrower”), the other Subsidiaries of the Parent Borrower party
hereto, the Lenders party hereto and JPMORGAN CHASE BANK, N.A., as
Administrative Agent.

The parties hereto agree as
follows:

ARTICLE I

Definitions

SECTION 1.01.  Defined Terms.  As used in this Agreement, the following
terms have the meanings specified below:

“AAG” means Asia
Aluminum Group Ltd.

“AAG Disposition”
means the sale, transfer or other disposition of any AAG Investment or the
Equity Interests of any AAG Entity.

“AAG Entity” means
any wholly-owned Subsidiary the only asset of which consists of all or a
portion of the AAG Investment.

“AAG Investment”
means the Equity Interests of AAG owned directly or indirectly by the Parent
Borrower or any Subsidiary as of the Effective Date.

“AAG Proceeds” means
the Net Proceeds from any AAG Disposition.

“AAG Shareholders Agreement”
means the Shareholders Agreement relating to AAG dated June 8, 2001, among
Asian Aluminum Holdings Limited, AAG Indalex UK Limited and Indalex Inc. as in
effect on the date hereof.

“ABR”, when used in
reference to any Loan or Borrowing, refers to whether such Loan, or the Loans
comprising such Borrowing, are bearing interest at a rate determined by
reference to the Alternate Base Rate.

“Acceptance Fee” has
the meaning assigned to such term in Section 2.12(c).

“Account” has the
meaning assigned to such term in the Security Agreements.

“Account Debtor”
means any Person obligated on an Account.

“Acquisition” means
the acquisition by the Parent Borrower, directly or indirectly, of all the
Equity Interests of the U.S. Company and the Canadian Company pursuant to the
Purchase Agreement.

 

“Acquisition Documents”
means the Purchase Agreement, all other agreements to be entered into in
connection with the Acquisition and all schedules, exhibits and annexes to each
of the foregoing and all side letters, instruments and agreements affecting the
terms of the foregoing or entered into in connection therewith.

“Additional Lender”
has the meaning assigned to such term in Section 2.21(b).

“Adjusted Eligible
Accounts” means, at any time, the Eligible Accounts of (x) the Parent
Borrower and the wholly-owned Domestic Subsidiary Loan Parties at such time, in
the case of the Domestic Borrowing Base, or (y) the Canadian Subsidiary
Borrower and the wholly-owned Canadian Subsidiary Loan Parties at such time, in
the case of the Canadian Borrowing Base, in each case minus the
applicable Dilution Reserve at such time.

“Adjusted LIBO Rate”
means, with respect to any Eurodollar Borrowing for any Interest Period, an
interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%)
equal to (a) the LIBO Rate for such Interest Period multiplied by
(b) the Statutory Reserve Rate.

“Administrative Agent”
means (x) JPMorgan Chase Bank, N.A., in its capacity as administrative agent
for the Lenders hereunder (or, as applicable, such Affiliates thereof as it
shall from time to time designate for the purpose of performing its obligations
hereunder in such capacity), and (y) with respect to Loans or Borrowings made
to, or B/A Drawings made by, the Canadian Subsidiary Borrower, or Letters of
Credit issued for the account of the Canadian Subsidiary Borrower or any
Foreign Subsidiary, JPMorgan Chase Bank, N.A., Toronto Branch (or, as
applicable, such Affiliates thereof as it shall from time to time designate for
the purpose of performing its obligations hereunder in such capacity), and, in
each case, its successors in such capacity as provided in Article VIII.

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

“Affiliate” means,
with respect to a specified 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; provided, however, that
for purposes of Section 6.09, the term “Affiliate” shall also include any
person that directly, or indirectly through one or more intermediaries, owns
10% or more of any class of Equity Interests of the Person specified or that is
an officer or director of the Person specified.

“Agreement” has the
meaning assigned to such term in the preamble to this Agreement.

“ALTA” means the
American Land Title Association.

“Alternate Base Rate”
means, for any day, a rate per annum equal to the greater of (a) the Prime
Rate in effect on such day and (b) the Federal Funds Effective Rate in
effect on such day plus 1⁄2 of 1%. 
Any change in the Alternate Base Rate due to a change in the Prime Rate
or the Federal Funds Effective Rate shall be effective from and including the
effective date of such change in the Prime Rate or the Federal Funds Effective
Rate, respectively.

“Applicable Percentage”
means, at any time with respect to any Lender, the percentage of the aggregate
Revolving Commitments at such time represented by such Lender’s Revolving
Commitment at such time.  If the
Revolving Commitments have terminated or expired, the Applicable Percentages
shall be determined based upon the Revolving Commitments most recently in
effect, giving effect to any assignments of Revolving Exposure that occur after
such termination or expiration.

 2
 

 

“Applicable Rate”
means, for any day, with respect to any Eurodollar Revolving Loan, ABR
Revolving Loan, U.S. Base Rate Revolving Loan or Canadian Base Rate Revolving
Loan, or with respect to the B/A Drawings and the Commitment Fees payable
hereunder, as the case may be, the applicable rate per annum set forth below
under the caption “Eurodollar Spread and B/A Rate”, “ABR, U.S. Base Rate and
Canadian Base Rate Spread” or “Commitment Fee Rate”, as the case may be, based
upon the Average Availability determined as of the date of the most recent
Borrowing Base Certificate delivered pursuant to Section 5.01(f) (calculated as
of the end of such day):

	
  Average Availability

  	
   

  	
  Eurodollar Spread

  and 

  B/A Rate

  	
   

  	
  ABR, U.S. Base Rate and

  Canadian Base Rate

  Spread

  	
   

  	
  Commitment

  Fee Rate

  	
   

  
	
  Category 1 3
  $130,000,000

  	
   

  	
  1.75

  	
  %

  	
  0.75

  	
  %

  	
  0.375

  	
  %

  
	
  Category 2 <
  $130,000,000 3 $65,000,000

  	
   

  	
  2.00

  	
  %

  	
  1.00

  	
  %

  	
  0.375

  	
  %

  
	
  Category 3 <
  $65,000,000

  	
   

  	
  2.25

  	
  %

  	
  1.25

  	
  %

  	
  0.375

  	
  %

  

 

Notwithstanding the
foregoing, the Applicable Rate with respect to any Loan or fee shall be deemed
to be in Category 3 (a) at any time that an Event of Default has
occurred and is continuing or (b) at the option of the Administrative Agent or
at the request of the Required Lenders if the Parent Borrower fails to deliver
any Borrowing Base Certificate required to be delivered by it pursuant to
Section 5.01(f), during the period from the expiration of the time for
delivery thereof until such Borrowing Base Certificate is delivered.

“Approved Fund” has
the meaning assigned to such term in Section 9.04(b).

“Assignment and
Assumption” means an assignment and assumption entered into by a Lender and
an assignee (with the consent of any party whose consent is required by
Section 9.04), and accepted by the Administrative Agent, substantially in
the form of Exhibit A or any other form approved by the
Administrative Agent.

“Availability” means,
at any time, an amount equal to (a) the Total Borrowing Base at such time, minus
(b) the aggregate Revolving Exposure at such time.

“Availability Block”
means an amount equal to $15,000,000.

“Availability Period”
means the period from and including the Effective Date to but excluding the
earlier of the Maturity Date and the date of termination of the Commitments.

“Average Availability”
means, on any day, an amount equal to the quotient of (a) the sum of the end of
day Availability for each day during the most recently ended period of three
consecutive full calendar months, divided by (b) the number of days in
such three-month period.  Notwithstanding
the foregoing, in the event the Borrowing Base Certificate is delivered on a
weekly basis pursuant to Section 5.01(f), Average Availability means, on any
day, an amount equal to the quotient of (a) the sum of the end of day Availability
for each day during the most recently ended period of twelve consecutive full
calendar weeks, divided by (b) the number of days in such twelve-week
period.

 3
 

 

“B/A” means
a bill of exchange, including a depository bill issued in accordance with the
Depository Bills and Notes Act (Canada), denominated in Canadian Dollars, drawn
by the Canadian Subsidiary Borrower and accepted by a Lender that is a Canadian
Resident in accordance with the terms of this Agreement.

“B/A Drawing” means B/As accepted and purchased on the same date and as to which a
single Contract Period is in effect, including any B/A Equivalent Loans made on
the same date and as to which a single Contract Period is in effect.  For greater certainty, all provisions of this
Agreement that are applicable to B/As are also applicable, mutatis mutandis, to B/A Equivalent Loans
and, with respect to any Non-B/A Lender, all references herein to B/As shall be
deemed to include references to B/A Equivalent Loans.

“B/A Equivalent Loan”
has the meaning assigned to such term in Section 2.06(k).

“Banking Services”
means each and any of the following bank services provided to any Loan Party by
any Lender or any of its Affiliates: (a) commercial credit cards, (b) stored
value cards and (c) treasury management services (including controlled
disbursement, currency, automated clearinghouse transactions, return items,
overdrafts and interstate depository network services), provided that
any Banking Services provided to the Canadian Subsidiary Borrower or any
Canadian Subsidiary Loan Party shall be provided by a Canadian Resident.

“Banking Services
Obligations” of the Loan Parties means any and all obligations of the Loan
Parties, whether absolute or contingent and howsoever and whensoever created,
arising, evidenced or acquired (including all renewals, extensions and
modifications thereof and substitutions therefor) in connection with Banking
Services.

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

“Borrowers” means,
collectively, the Parent Borrower and the Canadian Subsidiary Borrower.

“Borrowing” means (a)
Loans of the same Tranche and Type, made, converted or continued on the same
date and, in the case of Eurodollar Revolving Loans, as to which a single
Interest Period is in effect, or (b) a Swingline Loan.

“Borrowing Base
Certificate” means a certificate, signed and certified as accurate and
complete by a Financial Officer or any other officer of the Parent Borrower
reasonably acceptable to the Administrative Agent, in substantially the form of
Exhibit C or another form that is reasonably acceptable to the
Administrative Agent in its sole discretion, which shall include appropriate
exhibits, schedules, supporting documentation and additional reports (a) as
outlined in Schedule 1 to Exhibit C, (b) as reasonably requested by
the Administrative Agent and (c) as provided for in Section 5.01(f).

“Borrowing Request”
means a request by the applicable Borrower for a Revolving Borrowing in
accordance with Section 2.03.

“Business Day” means
any day that is not a Saturday, Sunday or other day on which commercial banks
in New York City are authorized or required by law to remain closed, provided
that (a) when used in connection with a Eurodollar Loan, the term “Business Day”
shall also exclude any day on which banks are not open for dealings in U.S.
Dollar deposits in the London interbank market, and (b) when used in
connection with a Loan made to, or a Letter of Credit issued for the account
of, the

 4
 

 

Canadian
Subsidiary Borrower or a B/A, the term “Business Day” shall also
(i) exclude any day on which banks are not open for dealings in deposits
in Toronto but (ii) include any day on which banks are open for dealings
in deposits in Toronto.

“Canadian Base Rate”
means, for any day, the rate of interest per annum equal to the greater of (a)
the interest rate per annum publicly announced from time to time by the
Administrative Agent as its prime rate in effect on such day at its principal
office in Toronto for determining interest rates applicable to commercial loans
denominated in Canadian Dollars in Canada and (b) the interest rate per annum
equal to the sum of (i) the CDOR Rate on such day and (ii) 1⁄2 of 1% per
annum.  Any change in such prime rate or
the CDOR Rate shall be effective as of the opening of business on the effective
date of such change in the reference rate or the CDOR Rate, respectively.

“Canadian Benefit Plans”
means all employee benefit plans maintained or contributed to by the Borrowers
or any Subsidiary that are not Canadian Pension Plans, including all profit
sharing, savings, post-retirement, supplemental retirement, retiring allowance,
severance, pension, deferred compensation, welfare, bonus, incentive
compensation, phantom stock, legal services, supplementary unemployment benefit
plans or arrangements and all life, health, dental and disability plans and
arrangements in which the employees or former employees of the Borrowers or any
Subsidiary employed in Canada participate or are eligible to participate.

“Canadian Borrowing Base”
means, at any time, the sum of (a) 85% of the U.S. Dollar Equivalent of the
aggregate Adjusted Eligible Accounts of the Canadian Subsidiary Borrower and
the wholly-owned Canadian Subsidiary Loan Parties at such time, plus (b)
the lesser of (i) 85% of the product of (x) the Net Recovery Liquidation Rate
in effect (based on the then most recent independent Inventory appraisal in
form, scope and substance reasonably satisfactory to the Administrative Agent)
at such time multiplied by (y) the U.S. Dollar Equivalent of the
aggregate amount of Inventory of the Canadian Subsidiary Borrower and the
wholly-owned Canadian Subsidiary Loan Parties at such time (as reported in
accordance with the applicable Loan Party’s Inventory records), and (ii) the
sum of (A) 75% of the U.S. Dollar Equivalent of the aggregate cost of Eligible
Aluminum Billets and (B) 65% of the U.S. Dollar Equivalent of the aggregate
cost of Other Eligible Inventory, in each case of the Canadian Subsidiary
Borrower and the wholly-owned Canadian Subsidiary Loan Parties at such time (in
the case of each of subclauses (i) and (ii) of this clause (b), with any
Inventory, Eligible Inventory, Eligible Aluminum Billets and Other Eligible
Inventory to be valued on a first-in, first-out basis), provided that
the aggregate amount determined pursuant to this clause (b) shall not
constitute more than 50% of the Canadian Borrowing Base at such time, plus (c) the PP&E Component at such time minus
(d) Reserves with respect to the Canadian Subsidiary Borrower and the
wholly-owned Canadian Subsidiary Loan Parties at such time.  The Administrative Agent may, in its
Permitted Discretion, from time to time, reduce the advance rates set forth
above or establish and revise ineligibles and Reserves reducing the amount of
Eligible Accounts, Inventory, Eligible Inventory, Eligible Aluminum Billets,
Other Eligible Inventory, Eligible Machinery and Equipment and Eligible Real
Property used in computing the Canadian Borrowing Base, with any such changes
to be effective five Business Days after delivery of notice thereof to the
Canadian Subsidiary Borrower and the Lenders (which notice shall describe in
reasonable detail the reasons for such changes), provided that any
Reserve established by the Administrative Agent shall not apply in respect of
items excluded from Eligible Accounts, Eligible Inventory, Eligible Aluminum
Billets, Other Eligible Inventory, Eligible Machinery and Equipment and
Eligible Real Property pursuant to the definitions thereof or covered by any
other Reserve in effect at the time such Reserve is established.  The Canadian Borrowing Base at any time shall
be determined by reference to the most recent Borrowing Base Certificate
delivered to the Administrative Agent pursuant to Section 5.01(f) of this
Agreement.

“Canadian Company”
means Indalex Limited, a Canadian corporation (Corporation No. 4214269).

 5
 

 

“Canadian Dollars” or
“C$” means the lawful money of Canada.

“Canadian GAAP” means
the generally accepted accounting principles in Canada.

“Canadian Hypothec”
means a trust deed of hypothec granted or to be granted by any Loan Party in
favor of the Administrative Agent on moveable or immoveable property pursuant
to the laws of the Province of Quebec, together with all bonds, debentures and
pledges or hypothecs thereof, as amended, supplemented or otherwise modified
from time to time.

“Canadian L/C
Disbursement” means a payment made by the Issuing Bank pursuant to a Letter
of Credit issued for the account of the Canadian Subsidiary Borrower or for the
account of any Foreign Subsidiary.

“Canadian L/C Exposure”
means, at any time, the sum of (a) the aggregate undrawn amount of all
outstanding Letters of Credit issued for the account of the Canadian Subsidiary
Borrower and the Foreign Subsidiaries at such time plus (b) the
aggregate amount of all Canadian L/C Disbursements that have not yet been
reimbursed (including by the making of Loans hereunder) by or on behalf of the
Canadian Subsidiary Borrower and the Foreign Subsidiaries at such time.  The Canadian L/C Exposure of any Lender at
any time shall be its Applicable Percentage of the Canadian L/C Exposure at
such time.

“Canadian Lending Office”
means, as to any Lender, the applicable branch, office or Affiliate of such
Lender designated by such Lender to make Canadian Revolving Loans to the
Canadian Subsidiary Borrower and to accept and purchase or arrange for the
purchase of B/As, provided that any such branch or office shall be
(a) of a bank named in Schedule I or Schedule II to the Bank Act
(Canada) or (b) a branch or office either (i) of a financial
institution or other entity that is not a “non-resident of Canada” (as
such term is defined in the Canadian Tax Act) or (ii) of a financial
institution that is named on Schedule III to the Bank Act (Canada) and
through which an “authorized foreign bank” (as such term is defined in the
Canadian Tax Act) carries on a Canadian banking business, but only to the
extent that such financial institution is deemed to be a resident of Canada for
purposes of Part XIII of the Canadian Tax Act in respect of all amounts paid or
credited hereunder by the Canadian Subsidiary Borrower or any Canadian
Subsidiary Loan Party.

“Canadian Mortgage”
means a mortgage, deed of trust, assignment of leases and rents, leasehold
mortgage or other security document (including any amendment, modification or
supplement thereto) granting a Lien on any Mortgaged Property located in Canada
or any province thereof to secure the Canadian Secured Obligations.  Each Canadian Mortgage shall be reasonably
satisfactory in form and substance to the Administrative Agent.

“Canadian Multi-Employer
Plan” means a multi-employer plan within the meaning of the Regulations
under the Canadian Tax Act and applicable pension standards legislation in
Canada.

“Canadian Obligations”
means (a) all unpaid principal of and accrued and unpaid interest on Loans made
to the Canadian Subsidiary Borrower, (b) all Canadian L/C Exposure in respect
of Letters of Credit issued for the account of the Canadian Subsidiary Borrower
and the Foreign Subsidiaries, (c) the aggregate face amount due in respect of
outstanding B/As and (d) all accrued and unpaid fees and all expenses,
reimbursements, indemnities and other obligations of the Canadian Subsidiary
Borrower and the Foreign Subsidiary Loan Parties owed to the Lenders or to any
Lender, the Administrative Agent, the Issuing Bank or any indemnified party
arising under the Loan Documents (including the Guarantees provided by the
Foreign Loan Guarantors pursuant to Article X).

 6
 

 

“Canadian Pension Plan”
means any “registered pension plan” as defined in the Income Tax Act (Canada)
established or maintained by either Borrower or any Subsidiary for their
employees or former employees employed in Canada and for greater certainty does
not include a Canadian Multi-Employer Plan.

“Canadian Perfection
Certificate” means, at any time, the certificate most-recently delivered to
the Administrative Agent (a) in the case of the Effective Date, pursuant to
Section 4.01(f) or (b) thereafter, pursuant to Section 3.03(c) of the Canadian
Security Agreement, in each case in the form of Exhibit F-2 or any other
form approved by the Administrative Agent.

“Canadian Resident”
means a Person that is (a) resident in Canada for purposes of the Canadian Tax
Act or (b) deemed to be resident in Canada for purposes of the Canadian Tax Act
in respect of all amounts paid or credited hereunder by the Canadian Subsidiary
Borrower and the Canadian Subsidiary Loan Parties.

“Canadian Revolving
Exposure” means, at any time, the sum of (a) the U.S. Dollar
Equivalent of the aggregate principal amount of Canadian Revolving Loans
denominated in Canadian Dollars outstanding at such time, (b) the aggregate
principal amount of the Canadian Revolving Loans denominated in U.S. Dollars outstanding
at such time, (c) the U.S. Dollar Equivalent of the aggregate face amount of
the B/As accepted by the Lenders and outstanding at such time, (d) the U.S.
Dollar Equivalent of the Canadian L/C Exposure at such time and (e) the U.S.
Dollar Equivalent of the Canadian Swingline Exposure at such time.  The Canadian Revolving Exposure of any Lender
at any time shall be such Lender’s Applicable Percentage of the Canadian
Revolving Exposure at such time.

“Canadian Revolving Loan”
means a Loan made by a Lender pursuant to Section 2.01(b).  Each Canadian Revolving Loan
(a) denominated in Canadian Dollars shall be a Canadian Base Rate
Revolving Loan and (b) denominated in U.S. Dollars shall be a U.S. Base
Rate Revolving Loan or a Eurodollar Revolving Loan.

“Canadian Revolving
Sub-Commitment” means, with respect to each Lender, the commitment of such
Lender to make Canadian Revolving Loans, acquire participations in Letters of
Credit and Swingline Loans and accept and purchase, or arrange for the purchase
of, B/As hereunder during the Availability Period, expressed as an amount
expressed in U.S. Dollars representing the maximum potential aggregate amount
of such Lender’s Canadian Revolving Exposure, as such commitment may be
(a) reduced from time to time pursuant to Section 2.09 or Section
2.19(b), (b) reduced or increased from time to time pursuant to
assignments by or to such Lender pursuant to Section 9.02(d), Section 9.02(e)
or Section 9.04 or (c) increased from time to time pursuant to Revolving Commitment
Increases made pursuant to Section 2.21. 
The initial amount of each Lender’s Canadian Revolving Sub-Commitment is
set forth opposite such Lender’s name in the Commitment Schedule directly below
the column entitled “Canadian Revolving Sub-Commitments” or in the Assignment
and Assumption or Commitment Increase Amendment pursuant to which such Lender
shall have assumed its Canadian Revolving Sub-Commitment, as applicable, and,
in any such case, shall be equal to such Lender’s Applicable Percentage of the
aggregate Canadian Revolving Sub-Commitments. 
The initial aggregate amount of the Lenders’ Canadian Revolving
Sub-Commitments is $80,000,000.

“Canadian Secured
Obligations” means all Canadian Obligations, together with (a) Banking
Services Obligations of the Canadian Subsidiary Borrower and the Foreign
Subsidiary Loan Parties and (b) Swap Obligations entered into by the Canadian
Subsidiary Borrower and the Foreign Subsidiary Loan Parties owing to one or
more Lenders or their respective Affiliates (but only if such Lender or
Affiliate qualifies as a Canadian Resident at the time such Swap Obligation is
entered into), provided that at or prior to the time that any
transaction relating to any such Swap Obligation is executed,

 7
 

 

the
Lender or Affiliate of such Lender, in each case party thereto (other than
JPMorgan Chase Bank, N.A., Toronto Branch, or any of its Affiliates) shall have
delivered written notice to the Administrative Agent that such a transaction
has been or will be entered into and that it constitutes a Canadian Secured
Obligation entitled to the benefits of the applicable Collateral Documents.

“Canadian Security
Agreement” means the Canadian Security Agreement, substantially in the form
of Exhibit G-2, among the Parent Borrower, the Canadian Subsidiary
Borrower, each Subsidiary Loan Party party thereto and the Administrative
Agent.

“Canadian Subsidiary
Borrower” has the meaning assigned to such term in the preamble to this
Agreement, provided that, upon the amalgamation of 6461948 Canada Inc.
with the Canadian Company, the entity resulting from such amalgamation (which
shall be named “Indalex Limited”) shall become the Canadian Subsidiary Borrower
for all purposes hereunder and under the other Loan Documents.

“Canadian Swingline
Exposure” means, at any time, the aggregate principal amount of all
Swingline Loans made to the Canadian Subsidiary Borrower at such time.  The Canadian Swingline Exposure of any Lender
at any time shall be its Applicable Percentage of the Canadian Swingline
Exposure at such time.

“Canadian Subsidiary Loan
Party” means any Subsidiary that is organized under the laws of Canada or
any territory or province thereof (other than the Canadian Subsidiary Borrower)
and that is a Foreign Subsidiary Loan Party.

“Canadian Tax Act”
means the Income Tax Act (Canada) or any successor law purported to cover the
same subject matter, as amended from time to time.

“Capital Expenditures”
means, for any period, (a) the additions to property, plant and equipment and
other capital expenditures of the Parent Borrower and the Subsidiaries that are
(or should be) set forth in a consolidated statement of cash flows of the
Parent Borrower for such period prepared in accordance with GAAP and (b)
Capital Lease Obligations incurred by the Parent Borrower and the Subsidiaries
during such period, but excluding in each case (i) any such expenditure
made by the Parent Borrower or the applicable Subsidiary as payment of the
consideration for a Permitted Acquisition, (ii) any reinvestments in
capital assets made by the Parent Borrower or the applicable Subsidiary to the
extent made or committed to be made (x) with the Net Proceeds of any
sales, transfers or other dispositions of capital assets permitted hereunder
(including any like-kind exchanges) or under the other Loan Documents
(including any award by condemnation) or the Net Proceeds of insurance relating
to the loss of or damage to any capital asset and (y) within 180 days of
the receipt by the Parent Borrower or such Subsidiary of such Net Proceeds,
(iii) expenditures made by the Parent Borrower or the applicable
Subsidiary to effect leasehold improvements to any property leased by the
Parent Borrower or such Subsidiary to the extent such expenditures are
reimbursed by the landlord in respect of such property, (iv) expenditures
actually paid for by a third party (excluding Holdings or any subsidiary
thereof) and for which no Loan Party has provided or is required to provide any
consideration to such third party, (v) research and development
expenditures that are treated as additions to property, plant and equipment or
other capital expenditures in accordance with GAAP and (vi) expenditures
made with the Net Proceeds of any issuances of Qualified Equity Interests by
Holdings or capital contributions to the Parent Borrower.

“Capital Lease
Obligations” of any Person means the obligations of such Person to pay rent
or other amounts under any lease of (or other arrangement conveying the right
to use) real or personal property, or a combination thereof, which obligations
are required to be classified and accounted for as

 8
 

 

capital
leases on a balance sheet of such Person under GAAP, and the amount of such
obligations shall be the capitalized amount thereof determined in accordance
with GAAP.

“CDOR Rate” means, on
any date, an interest rate per annum equal to the average discount rate
applicable to bankers’ acceptances denominated in Canadian Dollars with a term
of 30 days (for purposes of the definition of “Canadian Base Rate”) or with a
term equal to the Contract Period of the relevant B/As and a face amount
comparable to the face amount of the relevant B/As (for purposes of the
definition of “Discount B/A Rate”) appearing on the Reuters Screen CDOR Page
(or on any successor or substitute page of such Screen, or any successor to or
substitute for such Screen, providing rate quotations comparable to those
currently provided on such page of such Screen, as determined by the
Administrative Agent from time to time) at approximately 10:00 a.m., Toronto
time, on such date (or, if such date is not a Business Day, on the next
preceding Business Day) or, if such rate is not so reported, the average of the
rate quotes for bankers’ acceptances denominated in Canadian Dollars (expressed
as a decimal and rounded upward, if necessary, to the nearest 1/100 of 1%) with
a term of 30 days (for purposes of the definition of “Canadian Base Rate”) or
with a term equal to the Contract Period of the relevant B/As and a face amount
comparable to the face amount of the relevant B/As (for purposes of the
definition of “Discount B/A Rate”) received by the Administrative Agent at
approximately 10:00 a.m., Toronto time, on such date (or, if such date is not a
Business Day, on the next preceding Business Day) from the Schedule I Reference
Lenders.

“Change in Control” means
(a) the acquisition of ownership, directly or indirectly, beneficially or of
record, prior to an IPO (or after an IPO if Holdings is the Public Company
after such IPO) by any Person other than Holdings of any Equity Interests in
the Parent Borrower, (b) prior to an IPO, the failure by the Permitted Holders
to own, directly or indirectly through a wholly-owned subsidiary, beneficially
and of record, Equity Interests in Holdings representing at least a majority of
the aggregate ordinary voting power and 40% of the aggregate equity value
represented by the issued and outstanding Equity Interests in Holdings, (c)
after an IPO, (i) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the
Exchange Act and the rules of the SEC thereunder as in effect on the date
hereof) other than the Permitted Holders, of Equity Interests representing more
than 40% of the aggregate ordinary voting power represented by the issued and
outstanding Equity Interests of the Public Company, and (ii) the ownership,
directly or indirectly, beneficially or of record, by the Permitted Holders of
Equity Interests in the Public Company representing in the aggregate a lesser
percentage of either the aggregate ordinary voting power or the aggregate
equity value represented by the issued and outstanding Equity Interests in the
Public Company than such Person or group, (d) the occupation of a majority
of the seats (other than vacant seats) on the board of directors of Holdings
(prior to an IPO) or the Public Company (after an IPO) by Persons who were
neither (i) nominated by the board of directors of Holdings or the Public
Company, as the case may be (or nominated by a third party and approved by such
board of directors), or the Permitted Holders nor (ii) appointed by
directors so nominated or (e) the occurrence of a “Change of Control” (or
similar event, however denominated), as defined in any Senior Secured Notes
Documents, any indenture or agreement in respect of Material Indebtedness of
Holdings, the Parent Borrower or any Subsidiary or any certificate of
designations (or other provision of the organizational documents of Holdings)
relating to, or any other agreement governing the rights of the holders of, any
Disqualified Equity Interests.

“Change in Law” means
(a) the adoption of any law, rule or regulation after the date of this
Agreement, (b) any change in any law, rule or regulation or in the
interpretation or application thereof by any Governmental Authority after the
date of this Agreement or (c) compliance by any Lender or the Issuing Bank (or,
for purposes of Section 2.15(b), by any lending office of such Lender or by
such Lender’s or the Issuing Bank’s holding company, if any) with any request,
guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement.

 9
 

 

“CLO” has the meaning
assigned to such term in Section 9.04(b).

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

“Co-Investor Fronting
Loans” means the loans made to Holdings by the Sponsor on the Effective
Date in an aggregate amount not to exceed $1,500,000 in lieu of the Equity
Contribution to be made by the Fronting Co-Investors on the Effective Date.

“Co-Investors” means
the Persons listed on Schedule 1.04 and their successors and assigns.

“Collateral” means
all the “Collateral” as defined in any Collateral Document and shall also
include the Mortgaged Properties.

“Collateral Access
Agreement” has the meaning assigned to such term in the Security
Agreements.

“Collateral Documents”
means, collectively, the Security Agreements, the Canadian Hypothecs, the
Mortgages and any other documents granting a Lien upon the Collateral as
security for payment of the Secured Obligations specified therein.

“Commitment” means
(a) with respect to any Lender, such Lender’s Revolving Commitment or Canadian
Revolving Sub-Commitment or commitment in respect of any Revolving Commitment
Increase or any combination thereof (as the context requires) and (b) with
respect to the Swingline Lender, its Swingline Commitment.

“Commitment Fee” has
the meaning assigned to such term in Section 2.12(a).

“Commitment Increase
Amendment” has the meaning assigned to such term in Section 2.21(b).

“Commitment Schedule”
means the Schedule attached hereto identified as such.

“Consolidated Cash
Interest Expense” means, for any period, the excess of (a) the sum of
(i) the interest expense (including imputed interest expense in respect of
Capital Lease Obligations, but net of any interest income) of Holdings, the
Parent Borrower and the Subsidiaries for such period, determined on a
consolidated basis in accordance with GAAP, (ii) any interest accrued
during such period in respect of Indebtedness of Holdings, the Parent Borrower
or any Subsidiary that is required to be capitalized rather than included in
consolidated interest expense for such period in accordance with GAAP, and
(iii) any cash payments made during such period in respect of obligations
referred to in clause (b)(ii) below that were amortized or accrued in a
previous period, minus (b) the sum of (i) to the extent
included in such consolidated interest expense for such period in accordance
with GAAP, non-cash amounts attributable to amortization of financing
costs (including debt issuance fees) paid in a previous period, (ii) to
the extent included in such consolidated interest expense for such period in
accordance with GAAP, non-cash amounts attributable to amortization of
debt discounts or accrued non-cash interest payments for such period and (iii)
to the extent included in such consolidated interest expense for such period in
accordance with GAAP, any fees (including underwriting fees) and expenses paid
in connection with the consummation of the Transactions.

“Consolidated EBITDA”
means, for any period, Consolidated Net Income for such period plus
(a) without duplication and to the extent deducted in determining such
Consolidated Net

 10
 

 

Income,
the sum of (i) consolidated interest expense, amortization or write-off of
debt discount and debt issuance costs and commissions, discounts and other fees
and charges associated with Indebtedness for such period,
(ii) consolidated income tax expense (and expenses for franchise tax in
the nature of income tax) and foreign withholding tax expense for such period
and any expense for state single business, unitary, gross receipts or similar
taxes for such period, (iii) all amounts attributable to depreciation and
amortization (including amortization of intangibles (including goodwill and
organizational costs)) for such period (excluding any amortization expense
attributable to a prepaid cash item that was paid in a prior period), (iv) any
extraordinary, unusual or non-recurring non-cash charges for such period (but
excluding any such non-cash charge in respect of an item to the extent that it
was included in Consolidated Net Income in a prior period and any such charge
that results from the write-down or write-off of inventory), (v) fees and
expenses incurred during such period in connection with the Transactions in an
aggregate amount not to exceed $25,000,000, (vi) fees and expenses incurred
during such period in connection with any proposed or actual issuance of any
Indebtedness or Equity Interests, or any proposed or actual investments
(including Permitted Acquisitions), asset sales or divestitures, in each case
permitted hereunder, in an aggregate amount not to exceed (for each such
transaction, other than an IPO) 2.0% of the aggregate value of such transaction,
(vii) the amount of management, consulting and advisory fees, transaction fees
and the amount of out-of-pocket costs and expenses incurred in connection with
management, consulting and advisory services, in each case paid or payable to
the Sponsor or any Sponsor Affiliate during such period in accordance with
Section 6.09(f), (viii) non-cash expenses resulting from the grant of stock
options or other equity-related incentives to any director, officer or employee
of Holdings, the Parent Borrower or any Subsidiary pursuant to a written plan
or agreement approved by the board of directors of Holdings, (ix) non-cash
exchange, translation or performance losses relating to any foreign currency or
commodities hedging transactions or currency fluctuations, (x) to the extent
actually reimbursed to Holdings, the Parent Borrower or any Subsidiary,
expenses during such period that are covered by indemnification provisions in
any agreement entered into by Holdings, the Parent Borrower or such Subsidiary
in connection with the Acquisition or any Permitted Acquisition, (xi) any
non-cash losses during such period resulting from the application of Financial
Accounting Standards No. 142 (relating to changes in accounting for the
amortization of goodwill and certain other intangibles) and Financial
Accounting Standards No. 144 (relating to writedowns of long-lived assets),
(xii) payments by Holdings, the Parent Borrower or any Subsidiary in respect of
earn-outs to which the seller in any acquisition or disposition becomes entitled
during such period, (xiii) any loss during such period in respect of
post-retirement benefits as a result of the application of Financial Accounting
Standards No. 106, (xiv) any loss during such period from discontinued
operations and any restructuring charges during such period, together in an
aggregate amount not to exceed $8,000,000 in any four-fiscal-quarter period of
the Parent Borrower, (xv) any loss resulting from the disposition of any asset
of Holdings, the Parent Borrower or any Subsidiary not in the ordinary course
of business and (xvi) charges during such period in respect of legal, pension,
warranty and severance costs relating to discontinued businesses that are
unrelated to the business of the Parent Borrower and the Subsidiaries, minus
(b) without duplication and (except in the case of clause (i)) to the extent
included in determining such Consolidated Net Income, the sum of (i) any cash
disbursements during such period that relate to non-cash charges or losses
added to Consolidated Net Income pursuant to clause (a)(iv) or (a)(viii) of
this paragraph in any prior period, (ii) any extraordinary, unusual or
non-recurring non-cash gains for such period, (iii) any non-cash gains for such
period that represent the reversal of any accrual in a prior period for, or the
reversal of any cash reserves established in a prior period for, anticipated
cash charges, (iv) non-cash exchange, translation or performance gains relating
to any foreign currency or commodities hedging transactions or currency fluctuations,
(v) any non-cash gains during such period resulting from the application of
Financial Accounting Standards No. 142 (relating to changes in accounting for
the amortization of goodwill and certain other intangibles) and Financial
Accounting Standards No. 144 (relating to writedowns of long-lived assets),
(vi) any gain during such period in respect of post-retirement benefits as a
result of the application of Financial Accounting Standards No. 106, (vii) any
gain during such period from discontinued operations of the Parent Borrower and
(viii) any gain resulting from the disposition of any

 11
 

 

asset
of Holdings, the Parent Borrower or any Subsidiary not in the ordinary course
of business, all determined on a consolidated basis in accordance with GAAP.  For purposes of calculating Consolidated
EBITDA for periods prior to the Effective Date, all references to Holdings, the
Parent Borrower and the Subsidiaries in this definition shall be deemed
references to the U.S. Company, the Canadian Company and their respective
subsidiaries.

“Consolidated Net Income”
means, for any period, the net income (excluding interest income) or loss of
Holdings, the Parent Borrower and the Subsidiaries for such period determined
on a consolidated basis in accordance with GAAP, provided that there
shall be excluded (a) the income of any Subsidiary to the extent that the
declaration or payment of dividends or other distributions by such Subsidiary
of that income is not at the time permitted by a Requirement of Law or any
agreement or instrument applicable to such Subsidiary (other than the Loan
Documents and the Senior Secured Notes Documents), except to the extent of the
amount of cash dividends or other cash distributions actually paid to the
Parent Borrower or any Subsidiary (other than cash dividends or other cash
distributions that constitute Excluded Proceeds) (unless the income of such
Subsidiary would be excluded from Consolidated Net Income pursuant to
clause (b) of this proviso) during such period, (b) the income of any
Person (other than the Parent Borrower or any Subsidiary that is not accounted
for using the equity method of accounting) in which the Parent Borrower or any
Subsidiary owns an Equity Interest (including the AAG Investment), except to
the extent of the amount of cash dividends or other cash distributions actually
paid to the Parent Borrower or any Subsidiary (other than cash dividends or
other cash distributions that constitute Excluded Proceeds) (unless the income
of such Subsidiary would be excluded from Consolidated Net Income pursuant to
clause (a) of this proviso) during such period, (c) unrealized gains and
losses with respect to Swap Agreements during such period and (d) the effects
of purchase accounting or similar adjustments required or permitted by GAAP in
connection with the Acquisition or any Permitted Acquisition.  For purposes of calculating Consolidated
EBITDA for periods prior to the Effective Date, all references to Holdings, the
Parent Borrower and the Subsidiaries in this definition shall be deemed
references to the U.S. Company, the Canadian Company and their respective
subsidiaries.

“Contract Period”
means, with respect to any B/A, the period commencing on the date such B/A is
issued and accepted and ending on the date 30, 60, 90 or 180 days thereafter,
as the Canadian Subsidiary Borrower may elect (in each case subject to
availability), or any other number of days from 1 to 180 with the consent of
each applicable Lender, provided that if such Contract Period would end
on a day other than a Business Day, such Contract Period shall be extended to
the next succeeding Business Day.

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

“Default” means any
event or condition that constitutes an Event of Default or that upon notice,
lapse of time or both would, unless cured or waived, become an Event of
Default.

“Delivery Trigger Date”
has the meaning assigned to such term in Section 2.22.

“Deposit Account Control
Agreement” has the meaning assigned to such term in the Security
Agreements.

“Dilution Factors”
means, without duplication, with respect to any period, the aggregate amount of
all deductions, credit memos, returns, adjustments, allowances, bad debt
write-offs and other non-cash credits that are recorded during such period to
reduce (x) with respect to the Domestic

 12
 

 

Borrowing
Base, the Accounts of the Parent Borrower and the wholly-owned Domestic
Subsidiary Loan Parties in a manner consistent with current and historical
accounting practices of the Parent Borrower and such Domestic Subsidiary Loan
Parties, as the case may be, or (y) with respect to the Canadian Borrowing
Base, the Accounts of the Canadian Subsidiary Borrower and the wholly-owned
Canadian Subsidiary Loan Parties in a manner consistent with current and
historical accounting practices of the Canadian Subsidiary Borrower and such
Canadian Subsidiary Loan Parties, as the case may be.

“Dilution Ratio”
means, on any date, the quotient (expressed as a percentage) equal to (x) with
respect to the Domestic Borrowing Base, (i) the aggregate amount of the
Dilution Factors in respect of the Accounts of the Parent Borrower and the
wholly-owned Domestic Subsidiary Loan Parties for the twelve fiscal month
period most recently ended on or prior to such date divided by (ii) the
aggregate gross sales of the Parent Borrower and such Domestic Subsidiary Loan
Parties for such twelve fiscal month period, or (y) with respect to the
Canadian Borrowing Base, (i) the aggregate amount of the Dilution Factors in
respect of the Accounts of the Canadian Subsidiary Borrower and the
wholly-owned Canadian Subsidiary Loan Parties for the twelve fiscal month
period most recently ended on or prior to such date divided by (ii) the
aggregate gross sales of the Canadian Subsidiary Borrower and such Canadian
Subsidiary Loan Parties for such twelve fiscal month period.

“Dilution Reserve”
means, on any date, (x) with respect to the Domestic Borrowing Base, the
product of (i) the excess, if any, of the applicable Dilution Ratio over 5% multiplied
by (ii) the aggregate amount of Eligible Accounts of the Parent
Borrower and the wholly-owned Domestic Subsidiary Loan Parties, in each case as
of such date, or (y) with respect to the Canadian Borrowing Base, the product
of (i) the excess, if any, of the applicable Dilution Ratio over 5% multiplied
by (ii) the aggregate amount of Eligible Accounts of the Canadian
Subsidiary Borrower and the wholly-owned Canadian Subsidiary Loan Parties, in
each case as of such date.

“Disclosed Matters”
means the actions, suits and proceedings and the environmental matters
disclosed in Schedule 3.06.

“Discount B/A Rate”
means, with respect to a B/A being accepted and purchased on any day, (a) for a
Lender that is a Schedule I Lender, the CDOR Rate applicable to such B/A and
(b) for a Lender that is a Schedule II Lender or a Schedule III Lender, the
lesser of (i) the CDOR Rate applicable to such B/A plus 0.10% per annum
and (ii) the arithmetic average (as determined by the Administrative Agent) of
the percentage discount rates (expressed as a decimal and rounded upward, if
necessary, to the nearest 1/100 of 1%) quoted to the Administrative Agent by
the Schedule II Reference Lender as the percentage discount rate at which the
Schedule II Reference Lender would, in accordance with its normal practices, at
approximately 10:00 a.m., Toronto time, on such day, be prepared to purchase
bankers’ acceptances accepted by such bank having a face amount and term
comparable to the face amount and Contract Period of such B/A.

“Discount Proceeds”
means, with respect to any B/A, an amount (rounded upward, if necessary, to the
nearest C$.01) calculated by multiplying (a) the face amount of such B/A
by (b) the quotient obtained by dividing (i) one by (ii) the sum
of (A) one and (B) the product of (x) the Discount B/A Rate
(expressed as a decimal) applicable to such B/A and (y) a fraction of
which the numerator is the Contract Period applicable to such B/A and the
denominator is 365, with such quotient being rounded upward or downward to the
fifth decimal place and .000005 being rounded upward.

“Disqualified Equity
Interests” means Equity Interests that (a) require the payment of any
dividends (other than dividends payable solely in shares of Qualified Equity
Interests), (b) mature or are mandatorily redeemable or subject to
mandatory repurchase or redemption or repurchase at the option of the holders
thereof, in each case in whole or in part and whether upon the occurrence of
any event,

 13
 

 

pursuant
to a sinking fund obligation on a fixed date or otherwise, prior to the date
that is 180 days after the Maturity Date (other than (i) upon payment
in full of the Obligations (other than Unliquidated Obligations), reduction of
the Total L/C Exposure to zero (or cash collateralization or other support of
all outstanding Letters of Credit in a manner reasonably acceptable to the
Issuing Bank) and termination of the Commitments or (ii) upon a “change in
control” or the sale of all or substantially all the assets of the issuing
entity, provided that any payment required pursuant to this
clause (ii) is contractually subordinated in right of payment to the
Obligations on terms reasonably satisfactory to the Administrative Agent and
such requirement is applicable only in circumstances that are market on the date
of issuance of such Equity Interests), (c) require the maintenance or
achievement of any financial performance standards other than as a condition to
the taking of specific actions or provide remedies to holders thereof (other
than voting and management rights and increases in pay-in-kind dividends) or
(d) are convertible or exchangeable, automatically or at the option of any
holder thereof, into any Indebtedness, Equity Interests or other assets other
than Qualified Equity Interests.

“Document” has the
meaning assigned to such term in the Security Agreements.

“Domestic Applicable
Percentage” has the meaning assigned to such term in Section 10.10(a).

“Domestic Borrowing Base”
means, at any time, the sum of (a) 85% of the U.S. Dollar Equivalent of the aggregate
Adjusted Eligible Accounts of the Parent Borrower and the wholly-owned Domestic
Subsidiary Loan Parties at such time, plus (b) the lesser of (i) 85% of
the product of (x) the Net Recovery Liquidation Rate in effect (based on the
then most recent independent Inventory appraisal in form, scope and substance
reasonably satisfactory to the Administrative Agent) at such time multiplied
by (y) the aggregate amount of Inventory of the Parent Borrower and the
wholly-owned Domestic Subsidiary Loan Parties at such time (as reported in
accordance with the applicable Loan Party’s Inventory records), and (ii) the
sum of (A) 75% of the aggregate cost of Eligible Aluminum Billets and (B)
65% of the aggregate cost of Other Eligible Inventory, in each case of the Parent
Borrower and the wholly-owned Domestic Subsidiary Loan Parties at such time (in
the case of each of subclauses (i) and (ii) of this clause (b), with any
Inventory, Eligible Inventory, Eligible Aluminum Billets and Other Eligible
Inventory to be valued on a first-in, first-out basis), provided that
the aggregate amount determined pursuant to this clause (b) shall not
constitute more than 50% of the Domestic Borrowing Base at such time, plus (c) the PP&E Component at such time minus
(d) Reserves with respect to the Parent Borrower and the wholly-owned Domestic
Subsidiary Loan Parties at such time. 
The Administrative Agent may, in its Permitted Discretion, from time to
time, reduce the advance rates set forth above or establish and revise
ineligibles and Reserves reducing the amount of Eligible Accounts, Inventory,
Eligible Inventory, Eligible Aluminum Billets, Other Eligible Inventory,
Eligible Machinery and Equipment and Eligible Real Property used in computing
the Domestic Borrowing Base, with any such changes to be effective five
Business Days after delivery of notice thereof to the Parent Borrower and the
Lenders (which notice shall describe in reasonable detail the reasons for such
changes), provided that any Reserve established by the Administrative Agent
shall not apply in respect of items excluded from Eligible Accounts, Eligible
Inventory, Eligible Aluminum Billets, Other Eligible Inventory, Eligible
Machinery and Equipment and Eligible Real Property pursuant to the definitions
thereof or covered by any other Reserve in effect at the time such Reserve is
established.  The Domestic Borrowing Base
at any time shall be determined by reference to the most recent Borrowing Base
Certificate delivered to the Administrative Agent pursuant to Section 5.01(f) of
this Agreement.

“Domestic Perfection
Certificate” means, at any time, the certificate most-recently delivered to
the Administrative Agent (a) in the case of the Effective Date, pursuant to
Section 4.01(f) or (b) thereafter, pursuant to Section 3.03(c) of the Domestic
Security Agreement, in each case in the form of Exhibit F-1 or any other
form approved by the Administrative Agent.

 14
 

 

“Domestic Security
Agreement” means the Domestic Security Agreement, substantially in the form
of Exhibit G-1, among Holdings, the Parent Borrower, each Domestic
Subsidiary Loan Party and the Administrative Agent.

“Domestic Subsidiary”
means any Subsidiary that is organized under the laws of the United States of
America, any State thereof or the District of Columbia.

“Domestic Subsidiary Loan
Party” means any Domestic Subsidiary.

“Effective Date”
means the date on which the conditions specified in Section 4.01 are
satisfied (or waived in accordance with Section 9.02).

“Eligible Accounts”
means, at any time, the Accounts of (x) the Parent Borrower and the
wholly-owned Domestic Subsidiary Loan Parties at such time, in the case of the
Domestic Borrowing Base, or (y) the Canadian Subsidiary Borrower and the
wholly-owned Canadian Subsidiary Loan Parties at such time, in the case of the
Canadian Borrowing Base, but excluding any Account:

(a) that is not subject to a
first priority perfected security interest in favor of the Administrative Agent
or to which the applicable Loan Party does not have sole lawful and absolute
title;

(b) that is subject to any
Lien other than (i) a Lien in favor of the Administrative Agent and (ii) a
Permitted Encumbrance that does not have priority over the Lien in favor of the
Administrative Agent;

(c) with respect to which
the scheduled due date is more than 90 days after the original invoice date,
that is unpaid more than 120 days after the date of the original invoice
therefor or more than 60 days after the original due date, or that has been
written off the books of the Parent Borrower or the applicable Domestic
Subsidiary Loan Party, in the case of the Domestic Borrowing Base, or the
Canadian Subsidiary Borrower or the applicable Canadian Subsidiary Loan Party,
in the case of the Canadian Borrowing Base, or otherwise designated as
uncollectible;

(d) that is owing by an
Account Debtor for which more than 50% of the aggregate amount of Accounts
owing from such Account Debtor and its Affiliates are ineligible hereunder;

(e) that is owing by an
Account Debtor to the extent the aggregate amount of Accounts owing from such
Account Debtor and its Affiliates to (i) the Parent Borrower or any
wholly-owned Domestic Subsidiary Loan Party, in the case of the Domestic
Borrowing Base, exceeds 10% (or, in the case of Utility Trailer Manufacturing
Co. or Eastern Metal Supply, 15%) of the aggregate Eligible Accounts
attributable to the Domestic Borrowing Base, and (ii) the Canadian Subsidiary
Borrower or any wholly-owned Canadian Subsidiary Loan Party, in the case of the
Canadian Borrowing Base, exceeds 10% (or, in the case of Utility Trailer
Manufacturing Co. or Eastern Metal Supply, 15%) of the aggregate Eligible
Accounts attributable to the Canadian Borrowing Base;

(f) with respect to which
any covenant, representation or warranty contained in any Loan Document has
been breached or is not true;

(g) that (i) does not arise
from the sale of goods or performance of services in the ordinary course of
business, (ii) is not evidenced by an invoice or other documentation reasonably
satisfactory to the Administrative Agent that has been sent to the Account
Debtor, (iii) represents

 15

 

a
progress billing, (iv) is contingent upon (A) the Parent Borrower or any
Domestic Subsidiary Loan Party’s, in the case of the Domestic Borrowing Base,
or (B) the Canadian Subsidiary Borrower or any Canadian Subsidiary Loan Party’s,
in the case of the Canadian Borrowing Base, completion of any further
performance, (v) represents a sale on a bill-and-hold, guaranteed sale,
sale-and-return, sale on approval, consignment, cash-on-delivery or any other
repurchase or return basis (other than customary customer return rights) or
(vi) relates to payments of interest;

(h) (i) for which the goods
giving rise to such Account have not been shipped to the Account Debtor or its
designee, (ii) for which the services giving rise to such Account have not been
performed by (A) the Parent Borrower or the applicable Domestic Subsidiary Loan
Party, in the case of the Domestic Borrowing Base, or (B) the Canadian
Subsidiary Borrower or the applicable Canadian Subsidiary Loan Party, in the
case of the Canadian Borrowing Base, (iii) for which the associated income has
not been earned or (iv) if such Account was invoiced more than once;

(i) that is owed by an
Account Debtor that has (i) applied for, suffered or consented to the
appointment of any receiver, interim receiver, receiver manager, custodian,
trustee, or liquidator of its assets, (ii) has had possession of all or a
material part of its property taken by any receiver, interim receiver, receiver
manager, custodian, trustee or liquidator, (iii) filed, or had filed against
it, any request or petition for liquidation, reorganization, arrangement,
adjustment of debts, adjudication as bankrupt, winding-up or voluntary or
involuntary case under any federal, state, provincial or foreign bankruptcy or
insolvency laws, (iv) has admitted in writing its inability, or is generally
unable to, pay its debts as they become due, (v) become insolvent or (vi)
ceased operation of its business;

(j) that is owed by an
Account Debtor that (i) does not maintain its chief executive office in the
United States of America, any State thereof or the District of Columbia or
Canada or any province thereof, or (ii) is not organized under applicable law
of the United States of America or any state thereof or Canada or any province
thereof, in each case, unless such Account (or portion thereof that is
reasonably acceptable to the Administrative Agent) is backed by a letter of
credit, guarantee or eligible bankers’ acceptance acceptable to the
Administrative Agent and in which the Administrative Agent has a perfected
security interest;

(k) that is owed in any
currency other than U.S. Dollars or Canadian Dollars;

(l) that is owed by (i) the
government (or any department, agency, public corporation or instrumentality
thereof) of any country other than (A) the United States of America, in the
case of the Domestic Borrowing Base, or (B) the United States of America or
Canada, in the case of the Canadian Borrowing Base, in each case, unless such
Account (or portion thereof that is reasonably acceptable to the Administrative
Agent) is backed by a letter of credit, guarantee or eligible bankers’
acceptance acceptable to the Administrative Agent and in which the
Administrative Agent has a perfected security interest, (ii) the government of
the United States of America, or any department, agency, public corporation or
instrumentality thereof, unless the Federal Assignment of Claims Act of 1940,
as amended (31 U.S.C. §§ 3727 et seq. and 41 U.S.C. §§ 15 et seq.), and any
other steps necessary to perfect the Lien of the Administrative Agent in such
Account have been complied with to the Administrative Agent’s reasonable
satisfaction, or (iii) in the case of the Canadian Borrowing Base, the
government of Canada, or any department, agency, public corporation or
instrumentality thereof, unless the Financial Administration Act (Canada), as
amended, and any other steps necessary to perfect the Lien of the
Administrative Agent in such Account have been complied with to the
Administrative Agent’s reasonable satisfaction;

 16
 

 

(m) that is owed by any
Affiliate (other than any portfolio company directly or indirectly owned by the
Sponsor so long as such Account has terms comparable to those provided to third
parties on an arms length basis), employee, officer, director, agent or
stockholder of any Loan Party;

(n) that, for any Account
Debtor, exceeds a credit limit determined by the Administrative Agent in its
Permitted Discretion, to the extent of such excess;

(o) that is owed by an
Account Debtor or any Affiliate of such Account Debtor to which (i) the Parent
Borrower or any Domestic Subsidiary Loan Party, in the case of the Domestic
Borrowing Base, or (ii) the Canadian Subsidiary Borrower or any Canadian
Subsidiary Loan Party, in the case of the Canadian Borrowing Base, is indebted,
but only to the extent of such indebtedness, or is subject to any security,
deposit, progress payment, retainage or other similar advance made by or for
the benefit of an Account Debtor, in each case to the extent thereof;

(p) that is subject to any
counterclaim, deduction, defense, setoff or dispute (but only to the extent of
any such counterclaim, deduction, defense, setoff or dispute) or is subject to
offset related to actual or anticipated sales volume rebates (but only to the
extent of any such rebate);

(q) that is owed by an
Account Debtor located in any jurisdiction that requires filing of a “Notice of
Business Activities Report” or other similar report in order to permit (i) the
Parent Borrower or the applicable Domestic Subsidiary Loan Party, in the case
of the Domestic Borrowing Base, or (ii) the Canadian Subsidiary Borrower or the
applicable Canadian Subsidiary Loan Party, in the case of the Canadian
Borrowing Base, to seek judicial enforcement in such jurisdiction of payment of
such Account, unless the Parent Borrower, such Domestic Subsidiary Loan Party,
the Canadian Subsidiary Borrower or such Canadian Subsidiary Loan Party, as
applicable, has filed such report or qualified to do business in such
jurisdiction, unless such failure to file may be cured by the payment of a de
minimis amount;

(r) with respect to which
(i) the Parent Borrower or any Domestic Subsidiary Loan Party, in the case of
the Domestic Borrowing Base, or (ii) the Canadian Subsidiary Borrower or any
Canadian Subsidiary Loan Party, in the case of the Canadian Borrowing Base, has
made any agreement with the Account Debtor for any reduction thereof, other
than discounts and adjustments given in the ordinary course of business, or any
Account that was partially paid and the Parent Borrower, such Domestic
Subsidiary Loan Party, the Canadian Subsidiary Borrower or such Canadian
Subsidiary Loan Party, as applicable, created a new receivable for the unpaid
portion of such Account;

(s) that does not comply in
all material respects with the requirements of all applicable laws and
regulations, whether federal, state, provincial or local, including, where
applicable, the Federal Consumer Credit Protection Act, the Federal Truth in
Lending Act and Regulation Z of the Board;

(t) that is for goods that
have been sold under a purchase order or pursuant to the terms of a contract or
other agreement or understanding (written or oral) that indicates or purports
that any Person other than (i) the Parent Borrower or the applicable Domestic
Subsidiary Loan Party, in the case of the Domestic Borrowing Base, or (ii) the
Canadian Subsidiary Borrower or the applicable Canadian Subsidiary Loan Party,
in the case of the Canadian Borrowing Base, has or has had an ownership
interest in such goods, or that indicates any party other than (A) the Parent
Borrower or the applicable Domestic Subsidiary Loan Party, in the case of the
Domestic Borrowing Base, or (B) the Canadian Subsidiary Borrower or the
applicable Canadian Subsidiary

 17
 

 

Loan
Party, in the case of the Canadian Borrowing Base, as payee or remittance party
(it being understood and agreed that the transfer of a purchase order from the
Parent Borrower or any Domestic Subsidiary Loan Party to the Canadian
Subsidiary Borrower or any Canadian Subsidiary Loan Party, or from the Canadian
Subsidiary Borrower or any Canadian Subsidiary Loan Party to the Parent
Borrower or any Domestic Subsidiary Loan Party, as the case may be, for
capacity or other ordinary course business reasons shall not, in itself, result
in the Account created in respect of such purchase order being deemed
ineligible pursuant to this clause (t) for purposes of (1) the Domestic
Borrowing Base, if the transferee is the Parent Borrower or any Domestic
Subsidiary Loan Party, or (2) the Canadian Borrowing Base, if the transferee is
the Canadian Subsidiary Borrower or any Canadian Subsidiary Loan Party);

(u) that was created on cash
on delivery terms;

(v) that arises from sales
to third party processors to the extent that the underlying inventory will be
returned to the applicable Loan Party;

(w) that the Administrative
Agent determines in its Permitted Discretion may not be paid by reason of the
Account Debtor’s inability to pay; or

(x) that is deemed
ineligible by the Administrative Agent in its Permitted Discretion.

In addition to the
foregoing, Eligible Accounts shall not include any portion of Accounts related
to unreconciled variances between the accounts receivable aging and the general
ledger to the extent that the general ledger is less than the accounts receivable
aging.  In determining the amount of an
Eligible Account, the face amount of an Account shall be reduced by, without
duplication, to the extent not reflected in such face amount, (i) the amount of
all accrued and actual discounts, claims, credits or credits pending,
promotional program allowances, price adjustments, finance charges or other
allowances (including any amount that (A) the Parent Borrower or the applicable
Domestic Subsidiary Loan Party, in the case of the Domestic Borrowing Base, or
(B) the Canadian Subsidiary Borrower or the applicable Canadian Subsidiary Loan
Party, in the case of the Canadian Borrowing Base, may be obligated to rebate
to an Account Debtor pursuant to the terms of any agreement or understanding
(written or oral)) and (ii) the aggregate amount of all cash received in
respect of such Account but not yet applied by (A) the Parent Borrower or the
applicable Domestic Subsidiary Loan Party, in the case of the Domestic
Borrowing Base, or (B) the Canadian Subsidiary Borrower or the applicable
Canadian Subsidiary Loan Party, in the case of the Canadian Borrowing Base, to
reduce the amount of such Account.  In
determining the aggregate amount from the same Account Debtor that is unpaid
more than 120 days from the original invoice date or more than 60 days
from the original due date pursuant to clause (c) above, there shall be
excluded the amount of any net credit balances relating to Accounts due from
such Account Debtor with invoice dates more than 120 days from the
original invoice date or more than 60 days from the original due date, as the
case may be.

“Eligible Aluminum
Billets” means, at any time, the portion of Eligible Inventory of (x) the
Parent Borrower and the wholly-owned Domestic Subsidiary Loan Parties at such
time, in the case of the Domestic Borrowing Base, or (y) the Canadian
Subsidiary Borrower and the wholly-owned Canadian Subsidiary Loan Parties at
such time, in the case of the Canadian Borrowing Base, in each case that is
comprised of aluminum billets and logs as shown on the applicable Loan Party’s
Inventory records in accordance with such Loan Party’s current and historical
accounting practices.

“Eligible Inventory”
means, at any time, the Inventory of (x) the Parent Borrower and the
wholly-owned Domestic Subsidiary Loan Parties at such time, in the case of the
Domestic Borrowing

 18
 

 

Base,
or (y) the Canadian Subsidiary Borrower and the wholly-owned Canadian
Subsidiary Loan Parties at such time, in the case of the Canadian Borrowing
Base, but excluding any Inventory:

(a) that is not subject to a
first priority perfected Lien in favor of the Administrative Agent, except to
the extent that this clause (a) would exclude any Inventory that is otherwise
expressly included pursuant to this definition;

(b) that is subject to any
Lien other than (i) a Lien in favor of the Administrative Agent and (ii) a
Permitted Encumbrance that does not have priority over the Lien in favor of the
Administrative Agent, except to the extent that this clause (b) would exclude
any Inventory that is otherwise expressly included pursuant to this definition;

(c) that is, in the
Administrative Agent’s reasonable opinion, seconds or thirds, stale,
slow-moving, obsolete, unmerchantable, defective, used, unfit for sale, not
salable in the ordinary course of business at prices approximating at least the
cost of such Inventory, or unacceptable due to age, type, category and/or
quantity, or that is identified by the applicable Loan Party as overstock or
excess;

(d) with respect to which
any covenant, representation or warranty contained in any Loan Document has
been breached or is not true and that does not conform to all standards imposed
by any Governmental Authority;

(e) in which any Person
other than (i) the Parent Borrower and the wholly owned Domestic Subsidiary
Loan Parties, in the case of the Domestic Borrowing Base, and (ii) the Canadian
Subsidiary Borrower and the wholly-owned Canadian Subsidiary Loan Parties, in
the case of the Canadian Borrowing Base, shall (A) have any direct or indirect
ownership, interest or title to such Inventory, except for any interest (and
any rights associated therewith, other than title) of such Person that arises
in respect of Inventory (1) (x) as identified goods pursuant to Section 2-501
of the Uniform Commercial Code or (y) pursuant to Section 2-716 of the Uniform
Commercial Code or (2) pursuant to any similar Canadian law or laws or (B) be
indicated on any purchase order or invoice with respect to such Inventory as
having or purporting to have an interest therein;

(f) that constitutes spare
or replacement parts, subassemblies, packaging and shipping material,
manufacturing supplies, samples, prototypes, displays or display items,
bill-and-hold goods, goods that are returned or marked for return, repossessed
goods, defective, damaged or rejected goods, goods held by any Loan Party on
consignment, or goods that are not of a type held for sale in the ordinary
course of business;

(g) that (i) is not located
in the United States of America (in the case of the Domestic Borrowing Base) or
Canada (in the case of the Canadian Borrowing Base) or (ii) is in transit with
a common carrier from vendors and suppliers (as opposed to in transit with a
common carrier between locations of Loan Parties, in which case such Inventory
shall not be excluded by virtue thereof) or (iii) is being held by a
Governmental Authority for purposes of customs clearance, except that any
Inventory excluded pursuant to subclause (ii) or (iii) of this clause (g)
having an aggregate Inventory Value not to exceed $15,000,000 at any time may
qualify as Eligible Inventory if (A) the applicable Loan Party has title to
such Inventory at such time and (B) such Inventory is insured in a manner that
is reasonably satisfactory to the Administrative Agent;

(h) that is located in any
location leased by (i) the Parent Borrower or any wholly-owned Domestic
Subsidiary Loan Party, in the case of the Domestic Borrowing Base, or (ii) the

 19
 

 

Canadian
Subsidiary Borrower or any wholly-owned Canadian Subsidiary Loan Party, in the
case of the Canadian Borrowing Base, in each case, unless (A) the lessor has delivered to the
Administrative Agent a Collateral Access Agreement or (B) a Reserve for up to
three months’ rent, charges and other amounts due or to become due with respect
to such facility has been established by the Administrative Agent in its
Permitted Discretion;

(i)
that is located in any third party warehouse or is in the possession of a
bailee (other than a third party processor) and is not evidenced by a Document,
unless (i) such warehouseman or bailee has delivered to the Administrative
Agent a Collateral Access Agreement and such other documentation as the
Administrative Agent may require or (ii) a Reserve has been established by the
Administrative Agent in its Permitted Discretion;

(j) that is being processed
offsite at a third party location or outside processor (unless the
Administrative Agent has (i) received a Collateral Access Agreement from such
location or processor with respect to such Inventory or (ii) a Reserve has been
established by the Administrative Agent in respect of such Inventory), or is
in-transit to or from said third party location or outside processor;

(k) that is a discontinued
product or component thereof;

(l) that is the subject of a
consignment by (i) the Parent Borrower or any Domestic Subsidiary Loan Party,
in the case of the Domestic Borrowing Base, or (ii) the Canadian Subsidiary
Borrower or any Canadian Subsidiary Loan Party, in the case of the Canadian
Borrowing Base, as consignor;

(m) that contains or bears
any intellectual property rights licensed to (i) the Parent Borrower or any
Domestic Subsidiary Loan Party, in the case of the Domestic Borrowing Base, or
(ii) the Canadian Subsidiary Borrower or any Canadian Subsidiary Loan Party, in
the case of the Canadian Borrowing Base, in each case, unless the
Administrative Agent is satisfied that it may sell or otherwise dispose of such
Inventory without (A) infringing the rights of such licensor,
(B) materially violating any contract with such licensor or (C) incurring
any liability with respect to payment of royalties other than royalties
incurred pursuant to sale of such Inventory under the current licensing
agreement;

(n) that is not reflected in
the current inventory records of (i) the Parent Borrower or any wholly-owned
Domestic Subsidiary Loan Party, in the case of the Domestic Borrowing Base, or
(ii) the Canadian Subsidiary Borrower or any wholly-owned Canadian Subsidiary
Loan Party, in the case of the Canadian Borrowing Base;

(o) any portion of the
Inventory Value that is attributable to intercompany profit among the
applicable Loan Party or its Affiliates; or

(p) that is deemed
ineligible by the Administrative Agent in its Permitted Discretion.

“Eligible Machinery and
Equipment” means the equipment listed on Schedule 1.01 and any
additional equipment acquired after the Effective Date, in each case that is
owned by (x) the Parent Borrower or any wholly-owned Domestic Subsidiary Loan
Party, in the case of the Domestic Borrowing Base, or (y) the Canadian
Subsidiary Borrower or any wholly-owned Canadian Subsidiary Loan Party, in the
case of the Canadian Borrowing Base, in each case (i) that is acceptable in the
Permitted Discretion of the Administrative Agent for inclusion in the
applicable Borrowing Base, (ii) in respect of which an appraisal report
has been delivered to the Administrative Agent in form, scope and substance
reasonably

 20
 

 

satisfactory
to the Administrative Agent and (iii) in respect of which the Administrative
Agent is satisfied that all actions necessary in order to create valid first
priority Liens on such equipment have been taken, and, in each case, meeting
each of the following requirements:

(a) (i) the Parent Borrower
or the applicable Domestic Subsidiary Loan Party, in the case of the Domestic
Borrowing Base, or (ii) the Canadian Subsidiary Borrower or the applicable
Canadian Subsidiary Loan Party, in the case of the Canadian Borrowing Base, in
each case has good title to such equipment and solely to the extent that no
other Person has any direct or indirect ownership, interest or title;

(b) (i) the Parent Borrower
or the applicable Domestic Subsidiary Loan Party, in the case of the Domestic
Borrowing Base, or (ii) the Canadian Subsidiary Borrower or the applicable
Canadian Subsidiary Loan Party, in the case of the Canadian Borrowing Base, has
the right to subject such equipment to a Lien in favor of the Administrative
Agent; and such equipment is subject to a first priority perfected Lien in
favor of the Administrative Agent and is free and clear of all other Liens of
any nature whatsoever (except for Permitted Encumbrances that do not have
priority over the Lien in favor of the Administrative Agent);

(c) the full purchase price
for such equipment has been paid by (i) the Parent Borrower or the applicable
Domestic Subsidiary Loan Party, in the case of the Domestic Borrowing Base, or
(ii) the Canadian Subsidiary Borrower or the applicable Canadian Subsidiary
Loan Party, in the case of the Canadian Borrowing Base;

(d) such equipment is located
on premises (i) owned by (A) the Parent Borrower or the applicable Domestic
Subsidiary Loan Party, in the case of the Domestic Borrowing Base, or (B) the
Canadian Subsidiary Borrower or the applicable Canadian Subsidiary Loan Party,
in the case of the Canadian Borrowing Base, and, in each case, subject to a
first priority perfected Lien in favor of the Administrative Agent, or (ii)
leased by (A) the Parent Borrower or the applicable Domestic Subsidiary Loan
Party, in the case of the Domestic Borrowing Base, or (B) the Canadian
Subsidiary Borrower or the applicable Canadian Subsidiary Loan Party, in the
case of the Canadian Borrowing Base, in each case, where (x) the lessor has
delivered to the Administrative Agent a Collateral Access Agreement or (y) a
Reserve for up to three months’ rent, charges and other amounts due or to
become due with respect to such facility has been established by the
Administrative Agent in its Permitted Discretion;

(e) such equipment is in
good working order and condition (ordinary wear and tear excepted);

(f) such equipment is not
subject to any agreement (other than the Loan Documents and the Senior Secured
Notes Documents) that restricts the ability of (i) the Parent Borrower or the
applicable Domestic Subsidiary Loan Party, in the case of the Domestic
Borrowing Base, or (ii) the Canadian Subsidiary Borrower or the applicable
Canadian Subsidiary Loan Party, in the case of the Canadian Borrowing Base, to
use, sell, transport or dispose of such equipment or that restricts the Administrative
Agent’s ability to take possession of, sell or otherwise dispose of such
equipment; and

(g) such equipment does not
constitute “fixtures” under the applicable laws of the jurisdiction in which
such equipment is located (unless the Administrative Agent is satisfied that
all actions necessary to create a perfected first priority Lien (subject to the
Liens described in clauses (a) and (b) (to the extent that (i) the applicable
warehouseman, bailee or other Person described in clause (b) of the definition
of “Permitted Encumbrance” has delivered to the

 21
 

 

Administrative
Agent a Collateral Access Agreement or (ii) a Reserve has been established by
the Administrative Agent in respect of such equipment) of the definition of “Permitted
Encumbrances”) in favor of the Administrative Agent on such fixtures have been
taken).

“Eligible
Real Property” means the real property listed on Schedule 1.02
owned by (x) the Parent Borrower or any wholly-owned Domestic Subsidiary
Loan Party, in the case of the Domestic Borrowing Base, or (y) the
Canadian Subsidiary Borrower or any wholly-owned Canadian Subsidiary Loan
Party, in the case of the Canadian Borrowing Base, and meeting each of the
following requirements:

(a) in respect of which an
appraisal report has been delivered to the Administrative Agent in form, scope
and substance reasonably satisfactory to the Administrative Agent;

(b) in respect of which the
Administrative Agent is satisfied that all actions necessary in order to create
a perfected first priority Lien (subject to Liens described in clauses (a), (b)
and (f) of the definition of “Permitted Encumbrances”) in favor of the
Administrative Agent on such real property have been taken, including the
filing, registration and recording of the applicable Mortgage (or the delivery
of the applicable Mortgage to the title insurance company for filing,
registration or recording);

(c) that is adequately
protected by valid title insurance with endorsements and in amounts reasonably
acceptable to the Administrative Agent, insuring that the Administrative Agent,
for the benefit of the Lenders, shall have a perfected first priority Lien
(subject to Liens described in clauses (a), (b) and (f) of the definition of “Permitted
Encumbrances”) on such real property, evidence of which shall have been
provided in form and substance reasonably satisfactory to the Administrative
Agent; and

(d) if reasonably required
by the Administrative Agent, (i) an ALTA survey (or equivalent Canadian or
other non-U.S. survey, as applicable) has been delivered for which all
necessary fees have been paid and which is dated no more than 30 days prior to
the date on which the applicable Mortgage is registered or recorded, certified
to Administrative Agent and the issuer of the title insurance policy in a
manner reasonably satisfactory to the Administrative Agent by a land surveyor
duly registered and licensed in the state or province in which such Eligible
Real Property is located and reasonably acceptable to the Administrative Agent,
and shows all buildings and other improvements, any material offsite
improvements, the location of any easements, parking spaces, rights of way,
building setback lines and other dimensional regulations and the absence of
encroachments, either by such improvements or on to such property, and other
defects, other than encroachments and other defects reasonably acceptable to
the Administrative Agent, (ii) in respect of which local counsel for the
applicable Loan Party in the state or province in which such Eligible Real Property
is located has delivered a letter of opinion with respect to the enforceability
and perfection of the applicable Mortgage and any related fixture filings in
form and substance reasonably satisfactory to the Administrative Agent, and
(iii) in respect of which (A) the Parent Borrower or the applicable
Domestic Subsidiary Loan Party, in the case of the Domestic Borrowing Base, or
(B) the Canadian Subsidiary Borrower or the applicable Canadian Subsidiary Loan
Party, in the case of the Canadian Borrowing Base, shall have used its
commercially reasonable efforts to obtain estoppel certificates executed by all
tenants of such Eligible Real Property and such other consents, agreements and
confirmations of lessors and third parties have been delivered as the Administrative
Agent may deem necessary or desirable, together with evidence that all other
actions that the Administrative Agent may deem necessary or desirable in order
to create perfected first priority Liens on the property described in the
applicable Mortgage have been taken.

 22
 

 

“Environmental Laws”
means all treaties, laws, rules, regulations, codes, ordinances, orders,
decrees, directives, judgments, injunctions, notices or binding agreements
issued, promulgated or entered into by or with any Governmental Authority,
relating in any way to the environment, the preservation or reclamation of
natural resources, the generation, management, Release of, or exposure to, any
Hazardous Material or to occupational health and safety matters.

“Environmental Liability”
means any liability, obligation, claim, action, suit, judgment or order under
or relating to any Environmental Law for any damages, injunctive relief,
losses, fines, penalties, fees, expenses (including reasonable fees and
expenses of attorneys and consultants) or costs, whether contingent or
otherwise, including those arising from or relating to (a) any actual or
alleged violation of any Environmental Law or permit, license or approval
issued thereunder, (b) the generation, use, handling, transportation,
storage, treatment or disposal of any Hazardous Materials, (c) exposure to
any Hazardous Materials, (d) the Release of any Hazardous Materials or the
presence of any Hazardous Materials in, on or under any real property 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 Contributions”
means, collectively, (a) the contribution by the Permitted Holders (or the
making of the Co-Investor Fronting Loans in lieu of such contribution) of an
aggregate amount not less than $111,250,000 in cash to Holdings as common
equity and (b) the further contribution by Holdings of all such cash
contribution proceeds to the Parent Borrower as common equity, the proceeds of
which will be used to consummate the Acquisition and pay fees and expenses
related to the Transactions.

“Equity Interests”
means shares of capital stock, partnership interests, membership interests in a
limited liability company, beneficial interests in a trust or other equity
ownership interests in a Person, and any warrants, options or other rights
entitling the holder thereof to purchase or acquire any such equity interest.

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

“ERISA Affiliate”
means any trade or business (whether or not incorporated) that, together with
the Parent Borrower, is treated as a single employer under Section 414(b)
or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section
412 of the Code, is treated as a single employer under Section 414 of the Code.

“ERISA Event” means
(a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder with respect to a Plan (other than an event
for which the 30-day notice period is waived), (b) the existence
with respect to any Plan of an “accumulated funding deficiency” (as defined in
Section 412 of the Code or Section 302 of ERISA), whether or not
waived, (c) the filing pursuant to Section 412(d) of the Code or
Section 303(d) of ERISA of an application for a waiver of the minimum
funding standard with respect to any Plan, (d) the incurrence by the
Parent Borrower or any of its ERISA Affiliates of any liability under
Title IV of ERISA with respect to the termination of any Plan,
(e) the receipt by the Parent Borrower or any ERISA Affiliate from the
PBGC or a plan administrator of any notice relating to an intention to
terminate any Plan or Plans or to appoint a trustee to administer any Plan, (f)
the incurrence by the Parent Borrower or any of its ERISA Affiliates of any
liability with respect to the withdrawal or partial withdrawal from any Plan or
Multiemployer Plan, or (g) the receipt by the Parent Borrower or any ERISA
Affiliate of any notice, or the receipt by any Multiemployer Plan from the
Parent Borrower or any ERISA Affiliate of any notice, concerning the imposition
of Withdrawal Liability or a determination that a Multiemployer Plan is, or is
expected to be, insolvent or in reorganization, within the meaning of
Title IV of ERISA.

 23
 

 

“Eurodollar”, when
used in reference to any Loan or Borrowing, refers to whether such Loan, or the
Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate.

“Event of Default”
has the meaning assigned to such term in Article VII.

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

“Exchange Rate”
means, on any day, for purposes of determining the U.S. Dollar Equivalent of
Canadian Dollars, the rate at which Canadian Dollars may be exchanged into U.S.
Dollars at the time of determination on such day on the Reuters WRLD Page for
Canadian Dollars.  In the event that such
rate does not appear on any Reuters WRLD Page, the Exchange Rate shall be
determined by reference to such other publicly available service for displaying
exchange rates as may be agreed upon by the Administrative Agent and the Parent
Borrower, or, in the absence of such an agreement, such Exchange Rate shall
instead be the arithmetic average of the spot rates of exchange of the
Administrative Agent in the market where its foreign currency exchange
operations in respect of Canadian Dollars are then being conducted, at or about
such time as the Administrative Agent shall elect after determining that such
rates shall be the basis for determining the Exchange Rate, on such date for
the purchase of U.S. Dollars for delivery two Business Days later, provided
that if at the time of any such determination, for any reason, no such spot
rate is being quoted, the Administrative Agent may use any reasonable method it
deems appropriate to determine such rate, and such determination shall be
conclusive absent manifest error.

“Excluded Proceeds”
means 100% of the Net Proceeds (or, in the case of clause (c) of this
definition, 50% of the Net Proceeds) received by the Parent Borrower or any
other Loan Party after the Effective Date from (a) any cash contributions made
to its common equity capital (other than contributions made by Holdings (unless
such cash contributions originate from the Sponsor), the Parent Borrower or any
Subsidiary), (b) any sale (other than to Holdings, any Subsidiary or any
management equity plan, stock option plan or any other management or employee
benefit plan or agreement of the Parent Borrower or any Subsidiary) of
Qualified Equity Interests, (c) any non-ordinary course asset sale permitted by
Section 6.05, (d) any dividends or distributions received with respect to
Equity Interests in AAG, (e) any AAG Proceeds required to be offered as a
prepayment to the holders of the Senior Secured Notes pursuant to the Senior
Secured Notes Indenture that are not accepted by such holders minus any
such AAG Proceeds distributed or paid to the Sponsor and (f) any AAG Proceeds
not required to be offered as a prepayment to the holders of the Senior Secured
Notes pursuant to the Senior Secured Notes Indenture minus any AAG
Proceeds distributed or paid to the Sponsor.

“Excluded Taxes”
means, with respect to the Administrative Agent, any Lender, the Issuing Bank
or any other recipient of any payment to be made by or on account of any
obligation of any Loan Party hereunder,

(a) income or franchise
taxes imposed on (or measured by) its net income by the United States of
America or Canada, or by the jurisdiction under the laws of which such
recipient is organized or in which its principal office is located or, in the
case of the Administrative Agent, the Issuing Bank or any Lender, in which its
applicable lending office is located;

(b) any branch profits taxes
imposed by the United States of America or Canada or any similar tax imposed by
any other jurisdiction described in clause (a) above;

(c) any withholding tax that
is attributable to the Administrative Agent’s, the Issuing Bank’s or a Lender’s
failure to comply with Section 2.17(e);

 24
 

 

(d) in the case of the
Administrative Agent, the Issuing Bank or any Lender (other than an assignee
pursuant to a request by a Borrower under Section 2.19(b)), any withholding tax
imposed by the United States of America that is in effect and would apply
to amounts payable to the Administrative Agent, the Issuing Bank or such Lender
at the time the Administrative Agent, the Issuing Bank or such Lender becomes a
party to this Agreement (or designates a new lending office), except to the
extent that (i) the Administrative Agent, the Issuing Bank or such Lender
(or its assignor, if any) was entitled, at the time of designation of a new
lending office (or assignment), to receive additional amounts from a Loan Party
with respect to any withholding tax pursuant to Section 2.17(a) or
(ii) such withholding tax shall have resulted from the making of any
payment to a location other than the office designated by the Administrative
Agent, the Issuing Bank or such Lender for the receipt of payments of the
applicable type; and

(e) any withholding tax
imposed under the laws of Canada or any province or territory therein, together
with any interest or penalty in respect thereof, except any such withholding
tax that would not have arisen but for (i) an assignment made pursuant to
a request by a Borrower under Section 2.19(b), (ii) a Change in Law
or (iii) the making of any payment to a location other than the office
designated by the Administrative Agent, the Issuing Bank or Lender, as the case
may be, for the receipt of payments of the applicable type.

“Fair Labor Standards Act”
means the Fair Labor Standards Act, 29 U.S.C. §§ 201 et seq.

“Federal Funds Effective
Rate” means, for any day, the weighted average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers, as published on the next succeeding 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 (rounded upwards, if necessary, to the next
1/100 of 1%) of the quotations for such day for such transactions received by
the Administrative Agent from three Federal funds brokers of recognized
standing selected by it.

“Financial Officer”
means, with respect to any Person, the chief financial officer, principal
accounting officer, vice president of finance, assistant treasurer, treasurer
or controller of such Person.  Unless
otherwise expressly indicated, “Financial Officer” shall mean a Financial
Officer of the Parent Borrower.

“Fixed Charges”
means, with reference to any period, without duplication, (a) Consolidated Cash
Interest Expense, plus (b) scheduled principal payments by a Loan Party
on Funded Indebtedness made during such period, plus (c) payments made
during such period or in any period prior to such period in respect of Funded
Indebtedness to the extent that such payments reduced any scheduled principal
payments referred to in clause (b) that would have become due during such
period, plus (d) expense for taxes paid in
cash during such period, plus (e) regularly-scheduled dividends or
distributions on preferred Equity Interests paid in cash during such period, plus
(f) Capital Lease Obligation payments made during such period, all calculated
for the Parent Borrower and the Subsidiaries on a consolidated basis.  Fixed Charges shall be deemed to be (a) for
the four fiscal quarter period ended on or about March 31, 2006, Fixed Charges for
the period from the Effective Date to and including the last day of such fiscal
quarter, multiplied by a fraction equal to (x) 365 divided by
(y) the number of days actually elapsed from the Effective Date to the
last day of such fiscal quarter, (b) for the four fiscal quarter period
ended on or about June 30, 2006, Fixed Charges for the period from the
Effective Date to and including the last day of such fiscal quarter, multiplied
by a fraction equal to (x) 365 divided by (y) the number
of days actually elapsed from the Effective Date to the last day of such fiscal
quarter, (c) for the four fiscal quarter period ended on or about September 30,
2006, Fixed Charges for the period from the Effective Date to and including the
last day of such fiscal quarter, multiplied by a fraction equal to
(x) 365 divided by (y) the

 25
 

 

number
of days actually elapsed from the Effective Date to the last day of such fiscal
quarter, and (d) for the four fiscal quarter period ended on or about December
31, 2006, Fixed Charges for the period from the Effective Date to and including
the last day of such fiscal quarter, multiplied by a fraction equal to
(x) 365 divided by (y) the number of days actually elapsed
from the Effective Date to the last day of such fiscal quarter.

“Fixed Charge Coverage
Ratio” means the ratio, determined as of the end of each fiscal quarter of
the Parent Borrower for the most-recently ended four fiscal quarters, of (a)
Consolidated EBITDA minus the unfinanced portion of Capital
Expenditures, to (b) Fixed Charges, all calculated for the Parent Borrower
and the Subsidiaries on a consolidated basis in accordance with GAAP.

“Foreign Applicable
Percentage” has the meaning assigned to such term in Section 10.10(b).

“Foreign Guaranteed
Obligations” has the meaning assigned to such term in
Section 10.01(b).

“Foreign Lender”
means any Lender that is organized under the laws of a jurisdiction other than
that in which the Parent Borrower is located except that in respect of the
Canadian Subsidiary Borrower or any Canadian Subsidiary Loan Party, “Foreign
Lender” means a Lender that is not a Canadian Resident.  For purposes of this definition, the United
States of America, each State thereof and the District of Columbia shall be
deemed to constitute a single jurisdiction.

“Foreign Loan Guarantor”
means each Foreign Subsidiary Loan Party.

“Foreign Mortgage”
means a mortgage, deed of trust, assignment of leases and rents, leasehold
mortgage or other security document (including any amendment, modification or
supplement thereto) granting a Lien on any Mortgaged Property located outside
the United States of America and Canada to secure the Canadian Secured
Obligations.  Each Foreign Mortgage shall
be reasonably satisfactory in form and substance to the Administrative Agent.

“Foreign Non-Paying
Guarantor” has the meaning assigned to such term in Section 10.10(b).

“Foreign Paying Guarantor”
has the meaning assigned to such term in Section 10.10(b).

“Foreign Security
Agreement” means a pledge or charge agreement with respect to the Collateral
that constitutes Equity Interests of a Foreign Subsidiary and/or a security
agreement with respect to the Collateral of a Foreign Subsidiary (other than
Collateral that constitutes Equity Interests of such Foreign Subsidiary), in
each case in form and substance reasonably satisfactory to the Administrative
Agent.

“Foreign Subsidiary”
means any Subsidiary that is organized under the laws of a jurisdiction other
than the United States of America, any State thereof or the District of
Columbia.

“Foreign Subsidiary Loan
Party” means any Foreign Subsidiary (other than the Canadian Subsidiary
Borrower), including any Canadian Subsidiary Loan Party but excluding any
Foreign Subsidiary (a) that is prohibited under mandatory provisions of
its organizational documents, applicable law or contractual restrictions in
existence on the date such Foreign Subsidiary became a Subsidiary (and not
created in anticipation thereof) from guaranteeing, providing Collateral to
secure, or otherwise becoming liable for, the Canadian Secured Obligations or
(b) in the event that any officer, director or

 26
 

 

employee
thereof would more likely than not incur liability under applicable law
(including, for the avoidance of doubt, any financial assistance laws of
England and Wales or the United Kingdom) in connection with such Foreign
Subsidiary being deemed a “Foreign Subsidiary Loan Party” under the Loan
Documents or from guaranteeing, providing Collateral to secure, or otherwise
becoming liable for, the Canadian Secured Obligations.

“Fostoria Plant”
means the real property owned by the U.S. Company commonly known as 930
Sandusky Street, Fostoria, Ohio 44830.

“Fronting Co-Investors”
means the Co-Investors listed on Schedule 1.05 and their successors and
assigns.

“Fronting Fee” has
the meaning assigned to such term in Section 2.12(b).

“Funded Indebtedness”
of any Person means the principal amount of Indebtedness (other than
Indebtedness described in clauses (f) and (j) of the definition thereof),
including all current maturities and current sinking fund payments in respect
of such Indebtedness (whether or not required to be paid within one year from
the date of its creation) and, in the case of the Borrowers, Indebtedness in
respect of the Loans.

“Funding Account” has
the meaning assigned to such term in Section 4.01(g).

“GAAP” means
generally accepted accounting principles in the United States of America.

“Governmental Authority”
means the government of the United States of America, any other nation or any
political subdivision thereof, whether state, provincial, territorial 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).

“Granting Lender” has
the meaning assigned to such term in Section 9.04(e).

“Guarantee” of or by
any Person (the “guarantor”) means any obligation, contingent or
otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any
obligation of the guarantor, direct or indirect, (a) to purchase or pay
(or advance or supply funds for the purchase or payment of) such Indebtedness
or other obligation or to purchase (or to advance or supply funds for the
purchase of) any security for the payment thereof, (b) to purchase or
lease property, securities or services for the purpose of assuring the owner of
such Indebtedness or other obligation of the payment thereof, (c) to
maintain working capital, equity capital or any other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party
in respect of any letter of credit or letter of guaranty issued to support such
Indebtedness or obligation, provided that the term Guarantee shall not
include endorsements for collection or deposit in the ordinary course of
business; and provided  further that the amount of any Guarantee
shall be deemed to be equal to the lesser of (i) an amount equal to the
stated or determinable amount of the primary obligation in respect of which
such Guarantee is made and (ii) (x) the maximum amount for which such
guarantor may be liable pursuant to the terms of the instrument embodying such
Guarantee or (y) if such Guarantee is not an unconditional guarantee of the
entire amount of the primary obligation in respect of which such Guarantee is
made and

 27
 

 

such
maximum amount is not stated or determinable, the amount of such guarantor’s
maximum reasonably-anticipated liability in respect thereof as determined by
such guarantor in good faith.

“Guaranteed Obligations”
has the meaning assigned to such term in Section 10.01(b).

“Guaranteed Parties”
has the meaning assigned to such term in Section 10.09.

“Hazardous Materials”
means (i) any petroleum products or byproducts and all other hydrocarbons, coal
ash, radon gas, asbestos, urea formaldehyde foam insulation, polychlorinated
biphenyls, chlorofluorocarbons and other ozone-depleting substances, and toxic
mold; and (ii) any chemical, material, substance or waste that is prohibited,
limited or regulated by or pursuant to any Environmental Law.

“Holdings” has the
meaning assigned to such term in the preamble to this Agreement.

“IAS Business” means the extrusion of and supply of engineered
aluminum components to the building and construction (residential and
commercial), consumer durables, electrical and cable, machinery and equipment,
transportation and distribution, and automotive industries, as such business is
conducted on the Effective Date under the “Indalex Aluminum Solutions” segment
of Novar USA Holdings Inc. and Novar Overseas Holdings B.V. and their
applicable subsidiaries.

“IAS Material Adverse
Effect” means a material adverse effect on the business, assets,
operations, results of operations, cash flow or financial condition of the IAS
Business, taken as a whole; provided, however, that such a
material adverse effect shall not constitute an IAS Material Adverse Effect if
it is caused by events, changes, effects or circumstances, alone or in
combination, that arise out of or result from (a) changes in economic
conditions or financial or securities markets in general or the industries and
markets in which the IAS Business operated (provided that such changes do not
disproportionately affect the IAS Business relative to the other participants
in its industry) or (b) the announcement of the Purchase Agreement and the
transactions contemplated thereby.

“Indebtedness” of any
Person means, without duplication, (a) all obligations of such Person for
borrowed money, (b) all obligations of such Person evidenced by bonds,
debentures, notes or similar instruments, (c) all obligations of such
Person under conditional sale or other title retention agreements relating to
property acquired by such Person, (d) all obligations of such Person in
respect of the deferred purchase price of property or services (excluding (x)
deferred compensation arrangements and (y) accounts payable that are not more
than 60 days past due, in each case entered into or incurred, as the case may
be, in the ordinary course of business), (e) all Indebtedness of others
secured by (or for which the holder of such Indebtedness has an existing right,
contingent or otherwise, to be secured by) any Lien on property owned or
acquired by such Person, whether or not the Indebtedness secured thereby has
been assumed, (f) all Guarantees by such Person of Indebtedness of others,
(g) all Capital Lease Obligations of such Person, (h) all
obligations, contingent or otherwise, of such Person as an account party in
respect of letters of credit and letters of guaranty, (i) all obligations,
contingent or otherwise, of such Person in respect of bankers’ acceptances and
(j) any other Off-Balance Sheet Liability. 
The Indebtedness of any Person shall include the Indebtedness of any
other entity (including any partnership in which such Person is a general
partner) to the extent such Person is liable therefor 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 that such Person is not
liable therefor.  Notwithstanding the
foregoing, in connection with any Permitted Acquisition or any acquisition by
the Parent Borrower or any Subsidiary, the term “Indebtedness” shall not
include (i) reimbursement obligations in respect of any letter of credit
assumed in such Permitted Acquisition or acquisition, the payment of which is
either (x) backed by a Letter of Credit or (y) cash collateralized, or (ii)
post-closing purchase price adjustments, earn-outs or

 28
 

 

similar
obligations that are dependent upon the performance of the acquisition target
after such closing to which the seller in such Permitted Acquisition or
acquisition may become entitled (except to the extent such post-closing
purchase price adjustments, earn-outs or similar obligations are overdue by
more than 30 days after the date on which the amount of the payments in respect
of such post-closing purchase price adjustments, earn-outs or similar obligations
become fixed).  The amount of
Indebtedness of any Person for purposes of clause (e) above shall (unless such
Indebtedness has been assumed by, or is otherwise recourse to, such Person) be
deemed to be equal to the lesser of (i) the aggregate unpaid amount of such
Indebtedness and (ii) the fair market value of the property encumbered thereby
as determined by such Person in good faith, and the amount of any contingent
Indebtedness of any Person shall be the maximum reasonably anticipated
liability in respect thereof as determined by such Person in good faith.

“Indemnified Taxes”
means Taxes other than Excluded Taxes.

“Indemnitee” has the
meaning assigned to such term in Section 9.03(b).

“Information Memorandum”
means the Confidential Information Memorandum dated November 2005, relating to
the Parent Borrower and the Transactions.

“Intercreditor Agent”
has the meaning assigned to such term in Section 9.22.

“Intercreditor Agreement”
means the Intercreditor Agreement dated as of the date hereof (as amended, amended
and restated, modified, supplemented or replaced from time to time in
accordance with this Agreement), among JPMorgan Chase Bank, N.A., as
Intercreditor Agent, U.S. Bank, National Association, as trustee, Holdings and
the Domestic Subsidiary Loan Parties party thereto, substantially in the form
of Exhibit H, or another intercreditor agreement that is no less
favorable to the Secured Parties than the Intercreditor Agreement, as
determined by the Administrative Agent in good faith.

“Interest Election Request”
means a request by the applicable Borrower to convert or continue a Revolving
Borrowing or a B/A in accordance with Section 2.08.

“Interest Payment Date”
means (a) with respect to any ABR, U.S. Base Rate or Canadian Base Rate
Loan (including a Swingline Loan), the last day of each March, June, September
and December and the Maturity Date and (b) with respect to any Eurodollar Loan,
the last day of the Interest Period applicable to the Borrowing of which such
Loan is a part and, in the case of a Eurodollar Borrowing with an Interest
Period of more than three months’ duration, each day prior to the last day of
such Interest Period that occurs at intervals of three months’ duration after
the first day of such Interest Period and the Maturity Date.

“Interest Period”
means, with respect to any Eurodollar Revolving Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically
corresponding day in the calendar month that is one, two, three or
six months thereafter (or nine or twelve months thereafter if, at the time
of the relevant Borrowing or conversion or continuation thereof, all Lenders
participating therein agree to make an interest period of such duration
available), as the applicable Borrower may elect, provided that (a) if
any Interest Period would end on a day other than a Business Day, such Interest
Period shall be extended to the next succeeding Business Day unless such next
succeeding Business Day would fall in the next calendar month, in which case
such Interest Period shall end on the next preceding Business Day and (b) any
Interest Period that commences on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the last
calendar month of such Interest Period) shall end on the last Business Day of
the last calendar month of such Interest Period.  For purposes hereof, the date of a Eurodollar
Revolving Borrowing initially shall be the date on which such

 29
 

 

Borrowing
is made and thereafter shall be the effective date of the most recent
conversion or continuation of such Borrowing.

“Inventory” has the
meaning assigned to such term in the Security Agreements.

“Inventory Value”
means, at any time, with respect to the Inventory of any Loan Party, the U.S.
Dollar Equivalent of the standard cost of such Inventory carried on the records
of such Loan Party at such time (valued on a first-in, first-out basis) less
any markup on any such Inventory received from an Affiliate, provided
that in the event variances under the standard cost method (a) are capitalized,
favorable variances shall be deducted from Inventory and unfavorable variances
shall not be added to Inventory, or (b) are expensed, a reserve shall be
determined in the Administrative Agent’s Permitted Discretion as appropriate in
order to adjust the standard cost of Inventory to approximate actual cost.

“IPO” means a bona
fide underwritten initial public offering of voting common Equity Interests of
Holdings (or, in the alternative, the Parent Borrower) newly issued by Holdings
(or, in the alternative, the Parent Borrower) or held in treasury as a direct
result of which at least 10% of the aggregate voting common Equity Interests of
Holdings (or, in the alternative, the Parent Borrower) (in each case,
calculated on a fully diluted basis taking into account all options or other
rights to acquire voting common Equity Interests of Holdings (or, in the
alternative, the Parent Borrower) then outstanding, regardless of whether such
options or other rights are then currently exercisable) will be beneficially
owned by Persons other than the Permitted Holders, Holdings and Affiliates of
Holdings (including all directors, officers and employees of Holdings, the
Parent Borrower or any of the Subsidiaries).

“Issuing Bank” means
JPMorgan Chase Bank, N.A., in its capacity as the issuer of Letters of Credit
hereunder, and its successors in such capacity as provided in
Section 2.05(i).  The Issuing Bank
may, in its discretion, arrange for one or more Letters of Credit to be issued
by Affiliates of the Issuing Bank and shall, in the case of Letters of Credit
issued for the account of the Canadian Subsidiary Borrower or any Foreign
Subsidiary, arrange for such Letters of Credit to be issued by JPMorgan Chase
Bank, N.A., Toronto Branch, in which case the term “Issuing Bank” shall include
JPMorgan Chase Bank, N.A., Toronto Branch, or any other such Affiliate with
respect to Letters of Credit issued by JPMorgan Chase Bank, N.A., Toronto
Branch, or any other such Affiliate.

“Joinder Agreement”
has the meaning assigned to such term in Section 5.11(a).

“Judgment Currency”
has the meaning assigned to such term in Section 9.19(a).

“Judgment Currency
Conversion Date” has the meaning assigned to such term in

Section 9.19(a).

“L/C Collateral Account”
has the meaning assigned to such term in Section 2.05(j).

“L/C Disbursement”
means a U.S. L/C Disbursement or Canadian L/C Disbursement, as the context may
require.

“Lenders” means the Persons listed on the Commitment Schedule
and any other Person that shall have become a party hereto pursuant to Section
2.21 or Section 9.04, other than any such Person that ceases to be a party
hereto pursuant to Section 9.02(d), Section 9.02(e) or Section 9.04.  Unless the context otherwise requires, the
term “Lenders” includes the Swingline Lender. 
References to any Lender in this Agreement or any other Loan Document
shall be deemed to mean such Lender’s affiliated Canadian Lending Office, where
applicable.

 30

 

“Letter of Credit”
means any letter of credit issued pursuant to this Agreement.

“LIBO Rate” means,
with respect to any Eurodollar Borrowing for any Interest Period, the rate
appearing on Page 3750 of the Dow Jones Market Service (or on any successor or
substitute page of such Service, or any successor to or substitute for such
Service, providing rate quotations comparable to those currently provided on
such page of such Service, as determined by the Administrative Agent from time
to time for purposes of providing quotations of interest rates applicable to
U.S. 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 U.S. Dollar deposits in an amount comparable to the
amount of such Eurodollar Borrowing and with a maturity comparable to such
Interest Period.  In the event that such
rate is not available at such time for any reason, then the “LIBO Rate” with
respect to such Eurodollar Borrowing for such Interest Period shall be the rate
at which U.S. Dollar deposits of an amount comparable to the amount of such
Eurodollar Borrowing and for a maturity comparable to such Interest Period are
offered by the principal London office of the Administrative Agent in
immediately available funds in the London interbank market at approximately
11:00 a.m., London time, two Business Days prior to the commencement of
such Interest Period.

“Lien” means, with
respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
hypothecation, encumbrance, charge or security interest in, on or of such
asset, (b) the interest of a vendor or a lessor under any conditional sale
agreement, capital lease or title retention agreement (or any financing lease
having substantially the same economic effect as any of the foregoing) relating
to such asset and (c) in the case of securities owned by the applicable
Person, any purchase option, call or similar right of a third party with
respect to such securities.

“LIFO Allowance” means,
as of any date, the amount by which (a) the book value of the Inventory of the
Parent Borrower as of such date (valued on a first-in, first-out basis) exceeds
(b) the book value of such Inventory as of such date as set forth on the
balance sheet of the Parent Borrower, which amount be may be a negative number.

“LIFO Allowance Variation”
means, for the twelve-month period ended October 2, 2005, an amount equal to
(a) the LIFO Allowance as of October 2, 2005 minus (b) the LIFO
Allowance as of September 26, 2004, which amount may be a negative number.

“Loan Documents”
means this Agreement, any promissory notes issued pursuant to the Agreement,
any Letter of Credit applications, the Collateral Documents, the Intercreditor
Agreement, the Loan Guaranty and all other agreements, instruments, documents
and certificates identified in Section 4.01 executed and delivered to, or
in favor of, the Administrative Agent or any Lenders and including all other
pledges, powers of attorney, consents, assignments, contracts and letter of
credit agreements whether heretofore, now or hereafter executed by or on behalf
of any Loan Party, or any employee of any Loan Party, and delivered to the
Administrative Agent or any Lender in connection with the Agreement or the
transactions contemplated thereby.  Any
reference in the Agreement or any other Loan Document to a Loan Document shall
include all appendices, exhibits or schedules thereto, and all amendments,
restatements, supplements or other modifications thereto, and shall refer to
the Agreement or such Loan Document as the same may be in effect at any and all
times such reference becomes operative. 
For purposes of clarity, “Loan Documents” shall be deemed not to include
the Senior Secured Notes Documents, the Acquisition Documents or any
documentation executed and delivered for the purpose of consummating the Equity
Contribution.

“Loan Guarantors”
means, collectively, the U.S. Loan Guarantors and the Foreign Loan Guarantors.

 31
 

 

“Loan Guaranty” means
Article X of this Agreement and, to the extent necessary, each separate
Guarantee, in form and substance reasonably satisfactory to the Administrative
Agent, delivered by each Loan Guarantor that is a Foreign Subsidiary (which
Guarantee shall be governed by the laws of the applicable jurisdiction in which
such Foreign Subsidiary is located), as it may be amended or modified and in
effect from time to time.

“Loan Parties” means
Holdings, the Parent Borrower, the Canadian Subsidiary Borrower, the Domestic
Subsidiary Loan Parties and the Foreign Subsidiary Loan Parties.

“Loans” means the
loans and advances made by the Lenders pursuant to this Agreement, including
Swingline Loans.

“Local Time” means
(a) with respect to a Loan or Borrowing made to the Parent Borrower or a
Letter of Credit issued for the account of the Parent Borrower or a Domestic
Subsidiary, New York City time, and (b) with respect to a Loan or
Borrowing made to the Canadian Subsidiary Borrower or a B/A accepted and
purchased by a Lender, or a Letter of Credit issued for the account of the
Canadian Subsidiary Borrower or a Foreign Subsidiary, Toronto time.

“Management Services
Agreement” means the Management Services Agreement dated as of February 2,
2006, between the Parent Borrower and the Sponsor.

“Material Adverse Effect”
means a material adverse effect on (a) the business, assets, results of
operations or financial condition of Holdings, the Parent Borrower and the
Subsidiaries, taken as a whole, (b) the ability of any Loan Party to
perform any of its material obligations under any Loan Document, (c) the
Collateral, taken as a whole, or the Administrative Agent’s Liens (on behalf of
itself and the Lenders) on the Collateral, taken as a whole, or the priority of
such Liens, or (d) the rights and remedies, taken as a whole, of the
Administrative Agent, the Issuing Bank or the Lenders under the Loan Documents.

“Material Indebtedness”
means Indebtedness (other than the Loans, Letters of Credit and B/As), or
obligations in respect of one or more Swap Agreements, of any one or more of
Holdings, the Parent Borrower and the Subsidiaries in an aggregate principal
amount exceeding $7,500,000.  For
purposes of determining Material Indebtedness, the “principal amount” of the
obligations of Holdings, the Parent Borrower or any Subsidiary in respect of
any Swap Agreement at any time shall be the maximum aggregate amount (giving
effect to any netting agreements) that Holdings, the Parent Borrower or such
Subsidiary would be required to pay if such Swap Agreement were terminated at
such time.

“Maturity Date” means
February 2, 2011 or any earlier date on which the Commitments are reduced to
zero or otherwise terminated pursuant to the terms hereof.

“Maximum Liability”
has the meaning assigned to such term in Section 10.09.

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

“Mortgage” means a
U.S. Mortgage, a Canadian Mortgage, a Foreign Mortgage or a Canadian Hypothec
in respect of Mortgaged Property, as the context may require.

“Mortgaged Property”
means, initially, each parcel of real property and the improvements thereto
owned by a Loan Party and identified on Schedule 1.04, and includes each
other parcel of real property and the improvements thereto owned by a Loan
Party with respect to which a Mortgage is granted pursuant to Section 5.11.

 32
 

 

“Multiemployer Plan”
means a multiemployer plan as defined in Section 4001(a)(3) of ERISA that
is contributed to by the Parent Borrower or any Domestic Subsidiary Loan Party
or any ERISA Affiliate.

“Net Orderly Liquidation
Value” means, at any time, with respect to Inventory, Eligible Real
Property or Eligible Machinery and Equipment of any Person, the orderly
liquidation value thereof (or, in the case of calculations made in respect of
the Canadian Borrowing Base, the U.S. Dollar Equivalent of the orderly liquidation
value thereof) as determined in a manner reasonably acceptable to the
Administrative Agent by an appraiser reasonably acceptable to the
Administrative Agent, net of all costs of liquidation thereof.

“Net Proceeds” means,
with respect to any event, (a) the cash proceeds received in respect of
such event, including (i) any cash received in respect of any non-cash
proceeds (including any cash payments received by way of deferred payment of
principal pursuant to a note or installment receivable or purchase price
adjustment receivable, earn-out or otherwise, but excluding any reasonable
interest payments), but only as and when received, (ii) in the case of a
casualty, cash insurance proceeds, and (iii) in the case of a condemnation
or similar event, cash condemnation awards and similar payments received in
connection therewith, minus (b) the sum of (i) all reasonable
fees and out-of-pocket expenses (including commissions and legal, accounting
and other professional and transaction fees) paid by Holdings, the Parent
Borrower and the Subsidiaries to third parties (other than Affiliates) in
connection with such event, (ii) in the case of a sale, transfer or other
disposition of an asset (including pursuant to a sale and leaseback transaction
or a casualty or a condemnation or similar proceeding), the amount of all
payments that are permitted hereunder and are made by Holdings, the Parent
Borrower and the Subsidiaries as a result of such event to repay Indebtedness
(other than Loans) secured by such asset or otherwise subject to mandatory
prepayment as a result of such event and (iii) the amount of all taxes
paid (or reasonably estimated to be payable) by Holdings, the Parent Borrower
and the Subsidiaries and the amount of any reserves established to fund contingent
liabilities reasonably estimated to be payable, in each case during the year
that such event occurred or the next succeeding year and that are directly
attributable to such event (as determined reasonably and in good faith by a
Financial Officer), provided that any reduction at any time in the
amount of any such reserves (other than as a result of payments made in respect
thereof) shall be deemed to constitute the receipt by the Parent Borrower at
such time of Net Proceeds in the amount of such reduction, but shall only then
be payable if otherwise required hereunder.

“Net Recovery Liquidation
Rate” means, at any time, with respect to Inventory of any Person, the
quotient (expressed as a percentage) of (i) the Net Orderly Liquidation Value
thereof divided by (ii) the Inventory Value thereof (or, in the case of
calculations made in respect of the Canadian Borrowing Base, the U.S. Dollar
Equivalent of the Inventory Value thereof), determined on the basis of the then
most recent independent Inventory appraisal in form, scope and substance
reasonably satisfactory to the Administrative Agent.

“Non-B/A Lender” has
the meaning assigned to such term in Section 2.06(k).

“Non-Paying
Guarantor” has the meaning assigned to such term in Section
10.10(b).

“Obligated
Party” has the meaning assigned to such term in Section 10.02.

“Obligation Currency”
has the meaning assigned to such term in Section 9.19(a).

“Obligations” means,
collectively, the U.S. Obligations and the Canadian Obligations.

 33
 

 

“Off-Balance Sheet
Liability” of a Person means (a) any repurchase obligation or liability of
such Person with respect to accounts or notes receivable sold by such Person to
the extent such amounts could reasonably be expected to become due, (b) any
indebtedness, liability or monetary obligation under any so-called “synthetic
lease” transaction entered into by such Person or (c) any indebtedness,
liability or obligation arising with respect to any other transaction that is
the functional equivalent of or takes the place of borrowing but that does not
constitute a liability on the balance sheets of such Person (other than
operating leases).

“Other Eligible Inventory”
means, at any time, the portion of Eligible Inventory of (x) the Parent
Borrower and the wholly-owned Domestic Subsidiary Loan Parties at such time, in
the case of the Domestic Borrowing Base, or (y) the Canadian Subsidiary
Borrower and the wholly-owned Canadian Subsidiary Loan Parties at such time, in
the case of the Canadian Borrowing Base, in each case that is comprised of
Inventory other than aluminum billets and logs as shown on the applicable Loan
Party’s Inventory records in accordance with such Loan Party’s current and
historical accounting practices.

“Other Taxes” means
any and all present or future recording, stamp or documentary taxes or any
other excise or property taxes, charges or similar levies arising from any
payment made under any Loan Document or from the execution, delivery or
enforcement of, or otherwise with respect to, any Loan Document, provided
that, for the avoidance of doubt, Other Taxes shall not include any income
taxes or withholding taxes.

“Parent Borrower” has
the meaning assigned to such term in the preamble to this Agreement.

“Participant” has the
meaning assigned to such term in Section 9.04(c)(i).

“Participation Fee”
has the meaning assigned to such term in Section 2.12(b).

“PBGC” means the
Pension Benefit Guaranty Corporation referred to and defined in ERISA and any
successor entity performing similar functions.

“Perfection Certificates”
means, collectively, the Domestic Perfection Certificate and the Canadian
Perfection Certificate.

“Permitted Acquisition”
means any acquisition by either Borrower or any wholly-owned Subsidiary Loan
Party of all the outstanding Equity Interests (other than directors’ qualifying
shares) in, all or substantially all the assets of, or all or substantially all
the assets constituting a division or line of business of, a Person if (a) such
acquisition was not preceded by, or consummated pursuant to, a hostile offer (including
a proxy contest), (b) to the knowledge of any Responsible Officer of any Loan
Party, no Default has occurred and is continuing or would result therefrom, (c)
such acquisition and all transactions related thereto are consummated in
accordance with applicable laws, (d) all actions required to be taken with
respect to such acquired or newly-formed Subsidiary or such acquired assets
under Section 5.11 shall have been taken (or simultaneously with the
consummation of such acquisition shall be taken), (e) after giving effect to
such acquisition, Reference Availability shall not be less than $35,000,000,
(f) the business of such Person or such assets, as the case may be, constitutes
a business permitted by Section 6.03(b), and (g) the Parent Borrower has delivered
to the Administrative Agent a certificate of a Financial Officer to the effect
set forth in clauses (a) through (f) above, together with all relevant
financial information for the Person or assets to be acquired as reasonably
requested by the Administrative Agent.

“Permitted Discretion”
means a determination made in good faith and in the exercise of reasonable
(from the perspective of a secured asset-based lender) business judgment.

 34
 

 

“Permitted Encumbrances”
means:

(a) Liens imposed by law for
Taxes (including customs duties), assessments or other governmental charges or
levies that are not yet due, are being contested in compliance with
Section 5.04 or are permitted to be due hereunder;

(b) carriers’, warehousemen’s,
mechanics’, materialmen’s, suppliers’, repairmen’s, construction, builders’,
landlords’ and other like Liens imposed by statutory or common law, arising in
the ordinary course of business and securing obligations that are not overdue
by more than 60 days or are being contested in compliance with Section 5.04;

(c) pledges and deposits
made in the ordinary course of business in compliance with workers’
compensation, unemployment insurance and other social security laws or
regulations;

(d) deposits to secure the
performance of bids, tenders, trade contracts, government contracts, leases,
statutory obligations, self-insurance or reinsurance obligations, stay customs,
surety and appeal or similar bonds, performance bonds, security deposits
(including (x) security deposits for import or customs duties and other amounts
that are being contested in compliance with Section 5.04 and (y) customary
security deposits for the payment of rent) and other obligations of a like
nature, in each case in the ordinary course of business;

(e) judgment liens in respect
of judgments that do not constitute an Event of Default hereunder;

(f) immaterial survey
exceptions, easements, zoning restrictions, rights-of-way, agreements with
Governmental Authorities disclosed by registered titles to the Mortgaged
Properties and similar encumbrances on real property imposed by law or arising
in the ordinary course of business that do not secure any monetary obligations
and that either (i) in the aggregate do not materially detract from the
value of the affected property or interfere with the ordinary conduct of
business of the Parent Borrower or any Subsidiary or (ii) are described in
a mortgage policy of the title insurance or surveys issued in favor of and
accepted by the Administrative Agent with respect to any property; and

(g) Liens arising from
Permitted Investments described in clause (d) of the definition of the term “Permitted
Investments”,

provided that the term “Permitted
Encumbrances” shall not include any Lien securing Indebtedness (other than
Indebtedness in respect of Permitted Investments described in clause (g)
above).

“Permitted Holders”
means the Sponsor, the Sponsor Affiliates and the Co-Investors.

“Permitted Investments”
means:

(a) direct obligations of,
or obligations the principal of and interest on which are unconditionally
guaranteed by, the United States of America (or by any agency thereof to the
extent such obligations are backed by the full faith and credit of the United
States of America), in each case maturing within one year from the date of
acquisition thereof;

(b) investments in
commercial paper maturing within 270 days from the date of acquisition thereof
and having, at such date of acquisition, the highest credit rating obtainable
from S&P or from Moody’s;

 35
 

 

(c) investments in
certificates of deposit, banker’s acceptances and time or demand deposits
maturing within 365 days from the date of acquisition thereof issued or
guaranteed by or placed with, and money market deposit accounts issued or
offered by, any domestic office of any commercial bank organized under the laws
of the United States of America or any State thereof which has a combined
capital and surplus and undivided profits of not less than $500,000,000;

(d) fully collateralized
repurchase agreements with a term of not more than 30 days for securities
described in clause (a) above and entered into with a financial
institution satisfying the criteria described in clause (c) above;

(e) investments in
securities with maturities of 365 days or less from the date of acquisition
thereof issued or fully guaranteed by any state, commonwealth or territory of
the United States of America, or by any political subdivision or taxing
authority thereof, and with a rating of A or higher by S&P and A2 or higher
by Moody’s;

(f) Indebtedness issued by
Persons (other than the Sponsor or any of Sponsor Affiliate) with a rating of A
or higher by S&P and A2 or higher by Moody’s;

(g) investments in any money
market fund that invests at least 95% of its assets in securities of the types
described in clauses (a) through (f) above; and

(h) in the case of the
Canadian Subsidiary Borrower or any Foreign Subsidiary, (i) investments of
the type and maturity described in clauses (a) through (g) above of foreign
obligors, which investments or obligors (or the parents of such obligors) have
ratings described in clause (b) above or equivalent ratings from
comparable foreign rating agencies or (ii) investments of the type and
maturity described in clauses (a) through (g) above of foreign obligors (or the
parents of such obligors), which investments or obligors (or the parents of
such obligors) are not rated as provided in such clauses or in clause (i) above
but which are, in the reasonable judgment of the Parent Borrower, comparable in
investment quality to such investments and obligors (or the parents of such
obligors).

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

“Plan”  means any employee pension benefit plan
(other than a Multiemployer Plan) subject to the provisions of Title IV of
ERISA or Section 412 of the Code or Section 302 of ERISA, and in
respect of which the Parent Borrower or any ERISA Affiliate is (or, if such
plan were terminated, would under Section 4069 of ERISA be deemed to be)
an “employer” as defined in Section 3(5) of ERISA.

“PP&E
Component” means, at the time of any determination, (a) with
respect to the Domestic Borrowing Base, an amount equal to the sum of (i) 85%
of the Net Orderly Liquidation Value of Eligible Machinery and Equipment of the
Parent Borrower and the wholly-owned Domestic Subsidiary Loan Parties at such
time, provided that the aggregate amount determined pursuant to this
subclause (a)(i) shall not constitute more than 20% of the aggregate Domestic
Borrowing Base at such time, and (ii) the lesser of (A) 50% of the fair
market value (as set forth in the then most recent independent appraisal in
form, scope and substance reasonably satisfactory to the Administrative Agent) of
Eligible Real Property of the Parent Borrower and the wholly-owned Domestic
Subsidiary Loan Parties at such time, and (B) $15,000,000, provided that
beginning on the first anniversary of the Effective Date such amount referred
to in this subclause (B) shall decrease by $3,000,000 per annum, and (b) with
respect to the Canadian Borrowing Base, an amount equal to the sum of (i) 85%
of the U.S. Dollar Equivalent of the Net Orderly

 36
 

 

Liquidation
Value of Eligible Machinery and Equipment of the Canadian Subsidiary Borrower
and the wholly-owned Canadian Subsidiary Loan Parties at such time, provided
that the aggregate amount determined pursuant to this subclause (b)(i) shall
not constitute more than 20% of the aggregate Canadian Borrowing Base at such
time, and (ii) the lesser of (A) 50% of the U.S. Dollar Equivalent of the fair
market value (as set forth in the then most recent independent appraisal in
form, scope and substance reasonably satisfactory to the Administrative Agent)
of Eligible Real Property of the Canadian Subsidiary Borrower and the
wholly-owned Canadian Subsidiary Loan Parties at such time, and (B) $5,000,000,
provided that beginning on the first anniversary of the Effective Date
such amount referred to in this subclause (B) shall decrease by $1,000,000 per
annum.  Notwithstanding the foregoing,
(x) at the time of any determination, the aggregate amount of the PP&E
Component with respect to the Domestic Borrowing Base and the Canadian
Borrowing Base, on a combined basis, shall not exceed $50,000,000 and (y) the
Parent Borrower shall have the option, at one time during the term of this
Agreement, to reallocate the amounts between clauses (a)(ii)(B) and (b)(ii)(B)
(so long as the aggregate amount under such clauses does not exceed $20,000,000
less the aggregate amount of decreases to the date of determination pursuant to
the provisos to clauses (a)(ii)(B) and (b)(ii)(B)) and the amounts of such
decreases set forth in the provisos to clauses (a)(ii)(B) and (b)(ii)(B) shall
be adjusted in a manner reasonably satisfactory to the Administrative Agent to
reflect such reallocation effected by the Parent Borrower.

“Prepayment Account”
means an account established by the Canadian Subsidiary Borrower with the
Administrative Agent and over which the Administrative Agent shall have
exclusive dominion and control, including the exclusive right of withdrawal for
application in accordance with Section 2.11(e).

“Prepayment Amount”
has the meaning assigned to such term in Section 5.12.

“Prime Rate” means
the rate of interest per annum publicly announced from time to time by JPMorgan
Chase Bank, N.A., as its prime rate in effect at its principal office in New
York City (the Prime Rate not being intended to be the lowest rate of interest
charged by JPMorgan Chase Bank, N.A., in connection with extensions of credit
to debtors).

“Pro Forma Combined
EBITDA” means, for the twelve-month period ended October 2, 2005 (which
period shall be deemed to have begun on September 27, 2004), the Consolidated
EBITDA (calculated on a combined basis for the U.S. Company, the Canadian
Company and their respective subsidiaries) for such period plus (a)
without duplication and to the extent deducted in determining Consolidated Net
Income (calculated on a combined basis for the U.S. Company, the Canadian
Company and their respective subsidiaries) for such period (and not otherwise
added to such Consolidated Net Income in calculating such Consolidated EBITDA
for such period), the sum of (i) non-recurring charges incurred during such
period in respect of restructurings, plant closings, headcount reductions or
other similar actions, including severance charges in respect of employee
terminations, (ii) losses resulting from the mark-to-market of derivative
instruments during such period, (iii) losses resulting from the sale, transfer
or other disposition of fixed assets during such period, (iv) impairment
charges during such period in respect of long-lived assets, (v) management,
consulting and advisory fees and related expenses, in each case paid during
such period to Novar USA Holdings Inc. or any of its Affiliates (net of
on-going stand-alone costs of the Parent Borrower and the Subsidiaries),
(vi) compensation charges during such period in respect of stock options
or other equity-related incentives granted to any director, officer or employee
of Holdings, the Parent Borrower or any Subsidiary pursuant to a written plan
or agreement of Novar USA Holdings Inc. or any of its Affiliates, (vii) charges
in respect of legal costs and pension costs incurred during such period
relating to discontinued businesses that are unrelated to the business of the
Parent Borrower and the Subsidiaries, (viii) operating expenses eliminated by
entering into the capital lease of the extrusion equipment located in Mississauga,
Ontario in an aggregate amount not to exceed

 37
 

 

$2,640,000,
(ix) purchase price adjustments relating to the acquisition of Novar plc and
its subsidiaries by Honeywell International Inc. in an aggregate amount not to
exceed $4,427,000 and (x) expenses resulting from manufacturing inefficiencies
arising from the undertaking of expansion initiatives at the Connersville,
Indiana and Pointe Claire, Quebec (Montreal) facilities in an aggregate amount
not to exceed $4,000,000, minus (b) without duplication and to the
extent included in determining such Consolidated Net Income during such period
(and not otherwise deducted from such Consolidated Net Income in calculating
such Consolidated EBITDA for such period), the sum of (i) gains resulting from
the mark-to-market of derivative instruments during such period and (ii) gains
resulting from the sale, transfer or other disposition of fixed assets during
such period.  In addition, the LIFO
Allowance Variation for such period shall be added to the Pro Forma Combined
EBITDA for such period.

“Projections” has the
meaning assigned to such term in Section 5.01(e).

“Proposed Change” has
the meaning assigned to such term in Section 9.04(d).

“Public Company”
means Holdings (or, if applicable, the Parent Borrower) after the consummation
of, and giving effect to, an IPO of such Person.

“Purchase Agreement”
means the Stock Purchase Agreement dated as of September 16, 2005, by and among
the Parent Borrower, Novar USA Holdings Inc., Novar Overseas Holdings B.V. and
Honeywell International Inc.

“Purchase Price” has
the meaning assigned to such term in the Purchase Agreement.

“Purchase Price
Adjustment Proceeds” means the proceeds, if any, received by either
Borrower in connection with any working capital adjustment to the Purchase Price
pursuant to the terms of the Purchase Agreement.

“Purchaser Material
Adverse Effect” means a material adverse change in or material adverse
effect on the ability of the Parent Borrower to perform its obligations under
the Purchase Agreement or to consummate the transactions contemplated thereby.

“Qualified Equity
Interests” means Equity Interests of Holdings other than Disqualified
Equity Interests.

“Reference Availability”
means, on any day, an amount equal to the lesser of (a) Average Availability as
of such date and (b) the end of day Availability on the immediately preceding
Business Day (or, for the purposes of any determination made under the
definition of “Permitted Acquisition” or Section 6.04(m) or Section 6.08(b)(vi)
or Section 6.08(b)(ix), an amount equal to the lesser of (x) Average
Availability and (y) Availability, in each case as determined on a pro forma
basis immediately after giving effect to any Loans incurred in connection with
the applicable acquisition, investment or purchase, as the case may be).

“Register” has the
meaning set forth in Section 9.04(b)(iv).

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

“Release” means any
actual or threatened release, spill, emission, leaking, dumping, injection,
pouring, deposit, disposal, discharge, dispersal, leaching or migration into or
through the

 38
 

 

environment
(including ambient air, surface water, groundwater, land surface or subsurface
strata) or within or upon any building, structure, facility or fixture.

“Report” means
reports prepared by the Administrative Agent or another Person showing the
results of appraisals, field examinations or audits pertaining to the Parent
Borrower or any Subsidiary’s assets from information furnished by or on behalf
of the Parent Borrower or any such Subsidiary, after the Administrative Agent
has exercised its rights of inspection pursuant to this Agreement, which
Reports may be distributed to the Lenders by the Administrative Agent.

“Required Lenders”
means, at any time, Lenders having Revolving Exposure and unused Revolving
Commitments representing more than 50% of the sum of the aggregate Revolving
Exposure and the aggregate unused Revolving Commitments at such time.

“Requirement of Law”
means, with respect to any Person, (a) the charter, articles or
certificate of organization or incorporation and bylaws or other organizational
or governing documents of such Person and (b) any statute, law, treaty,
rule, regulation, order, decree, writ, injunction or determination of any
arbitrator or court or other Governmental Authority, in each case applicable to
or binding upon such Person or any of its property or to which such Person or
any of its property is subject, and including Environmental Laws.

“Reserves” means any
and all reserves that the Administrative Agent deems necessary, in its
Permitted Discretion, to maintain (including, without duplication, reserves for
overdue or accrued and unpaid interest on the Secured Obligations, reserves for
up to three months’ rent at locations leased by any Loan Party and for
consignee’s, warehousemen’s and bailee’s charges (in each case to the extent
the Inventory located at such leased location or warehouse or subject to such
consignment or bailment is not covered by a Collateral Access Agreement),
reserves for lower of cost or market Inventory valuation, reserves for
Inventory shrinkage, reserves for customs charges and shipping charges related
to any Inventory in transit, reserves for Swap Obligations in excess of
$5,000,000 and any cash collateral posted with respect to any Swap Obligations,
reserves for contingent liabilities of any Loan Party that are reasonably
likely to become actual liabilities, reserves for uninsured losses of any Loan
Party, reserves for uninsured, underinsured, un-indemnified or
under-indemnified liabilities or potential liabilities with respect to any
litigation that are reasonably likely to become actual liabilities and reserves
for taxes, fees, assessments and other governmental charges and employee source
deductions, workers’ compensation obligations, vacation pay or pension fund
obligations) with respect to the Collateral or any Loan Party.  Any Reserve (including the amount of such
Reserve) shall bear a reasonable relationship to the events, conditions or
circumstances that are the basis for such Reserve.  The amount of any Reserve shall not be
duplicative of the amount of any other Reserve taken by any Loan Party with
respect to the same events, conditions or circumstances.  In the event that the Administrative Agent
determines in its Permitted Discretion that (a) the events, conditions or
circumstances underlying the maintenance of any Reserve shall cease to exist or
(b) the liability that is the basis for any Reserve has been reduced, then such
Reserve shall be rescinded or reduced in an amount as determined in the
Administrative Agent’s Permitted Discretion, as applicable, at the request of
the Parent Borrower.

“Responsible Officer”
means the chief executive officer or president of any Person or any Financial
Officer of such Person, and any other officer of such Person with
responsibility for the administration of the obligations of such Person under
this Agreement.  Unless otherwise
expressly indicated, “Responsible Officer” shall mean a Responsible Officer of
the Parent Borrower.

“Restricted Payment”
means any dividend or other distribution (whether in cash, securities or other
property) with respect to any Equity Interests in Holdings, the Parent Borrower
or any Subsidiary, or any payment (whether in cash, securities or other
property), including any sinking fund or

 39
 

 

similar
deposit, on account of the purchase, redemption, retirement, acquisition, cancelation
or termination of any Equity Interests in Holdings, the Parent Borrower or any
Subsidiary or any option, warrant or other right to acquire any such Equity
Interests in Holdings, the Parent Borrower or any Subsidiary, or any other
payment (including any payment under any Swap Agreement) that has a
substantially similar effect to any of the foregoing, other than compensation
in the ordinary course of business.

“Reuters Screen CDOR Page”
means the display designated as page CDOR on the Reuters Monitor Money Rates
Service or such other page as may, from time to time, replace that page on that
service for the purpose of displaying bid quotations for bankers’ acceptances
accepted by leading Canadian banks.

“Revolving Commitment”
means, with respect to each Lender, the commitment, if any, of such Lender to
make Revolving Loans and to acquire participations in Letters of Credit and
Swingline Loans and to accept and purchase, or arrange for the purchase of,
B/As hereunder during the Availability Period, expressed as an amount in U.S.
Dollars representing the maximum potential aggregate amount of such Lender’s
Revolving Exposure, as such commitment may be (a) reduced from time to time
pursuant to Section 2.09 or Section 2.19(b), (b) reduced or increased from time
to time pursuant to assignments by or to such Lender pursuant to Section
9.02(d), Section 9.02(e) or Section 9.04 and (c) increased from time to time
pursuant to Revolving Commitment Increases made pursuant to Section 2.21.  The initial amount of each Lender’s Revolving
Commitment is set forth on the Commitment Schedule directly below the column
entitled “Revolving Commitments” or in the Assignment and Assumption or
Commitment Increase Amendment pursuant to which such Lender shall have assumed
its Revolving Commitment, as the case may be. 
The initial aggregate amount of the Lenders’ Revolving Commitments is
$200,000,000.

“Revolving Commitment
Increase” has the meaning assigned to such term in Section 2.21(a).

“Revolving Exposure”
means, with respect to any Lender at any time, the sum of the outstanding
principal amount of such Lender’s U.S. Revolving Exposure and Canadian
Revolving Exposure at such time.  The
aggregate Revolving Exposure at any time shall be the aggregate amount of the
Revolving Exposure of all Lenders at such time.

“Revolving Loans”
means, collectively, the U.S. Revolving Loans and the Canadian Revolving Loans.

“S&P” means
Standard & Poor’s Ratings Group, Inc.

“Schedule I Lender” means any Lender named on Schedule I to
the Bank Act (Canada).

“Schedule I Reference
Lenders” means any one or
more of the Schedule I Lenders as may be agreed by the Canadian Subsidiary
Borrower and the Administrative Agent from time to time.

“Schedule II Lender”
means any Lender named on Schedule II to the Bank Act (Canada) or any Lender
that is a Canadian financial institution other than a Canadian chartered bank
and is not a Schedule III Lender.

“Schedule II Reference
Lender” means JPMorgan Chase Bank, N.A., Toronto Branch.

“Schedule III Lender” means any Lender named on Schedule III to
the Bank Act (Canada).

 40
 

 

“SEC” means the
Securities and Exchange Commission or any successor thereto.

“Secured Obligations”
means, collectively, the U.S. Secured Obligations and the Canadian Secured
Obligations.

“Secured Parties” has
the meaning assigned to such term in the Domestic Security Agreement.

“Security Agreements”
means, collectively, the Domestic Security Agreement, the Canadian Security
Agreement, the U.K. Charge of Shares and any Foreign Security Agreement.

“Senior Secured Notes”
means the 11.5% Second-Priority Senior Secured Notes due 2014 to be issued by
the Parent Borrower under the Senior Secured Notes Indenture on or prior to the
Effective Date, and any substantially identical second-priority senior secured
notes that are registered under the Securities Act of 1933, as amended, and
issued in exchange for the senior secured notes described in this definition.

“Senior Secured Notes
Documents” means the Senior Secured Notes Indenture, all side letters,
instruments, agreements and other documents evidencing or governing the Senior
Secured Notes, providing for any Guarantee or other right in respect thereof,
affecting the terms of the foregoing or entered into in connection therewith
and all schedules, exhibits and annexes to each of the foregoing.

“Senior Secured Notes
Indenture” means the Indenture dated as of February 2, 2006, among the
Parent Borrower, the Subsidiaries listed therein and U.S. Bank, National
Association, as trustee, in respect of the Senior Secured Notes.

“Sponsor” means Sun
Capital Partners, Inc.

“Sponsor Affiliate”
means any Affiliate of the Sponsor other than (a) Holdings, the Parent Borrower
and the Subsidiaries and (b) any other operating company or a Person controlled
by such an operating company.

“SPV” has the meaning
assigned to such term in Section 9.04(e).

“Statutory Reserve Rate”
means a fraction (expressed as a decimal), the numerator of which is the number
one and the denominator of which is the number one minus the aggregate
of the maximum reserve percentages (including any marginal, special, emergency
or supplemental reserves) expressed as a decimal established by the Board to
which the Administrative Agent is subject with respect to the Adjusted
LIBO Rate, for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board).  Such reserve percentages shall include those
imposed pursuant to such Regulation D. 
Eurodollar Revolving Loans shall be deemed to constitute eurocurrency
funding and to be subject to such reserve requirements without benefit of or
credit for proration, exemptions or offsets that may be available from time to
time to any Lender under such Regulation D or any comparable
regulation.  The Statutory Reserve Rate
shall be adjusted automatically on and as of the effective date of any change
in any reserve percentage.

“subsidiary” means,
with respect to any Person (the “parent”) at any date, any corporation,
limited liability company, partnership, association or other entity the
accounts of which would be consolidated with those of the parent in the parent’s
consolidated financial statements if such financial statements were prepared in
accordance with GAAP as of such date, as well as any other corporation, limited
liability company, partnership, association or other entity (a) of which
securities or

 41
 

 

other
ownership interests representing more than 50% of the equity or more than 50%
of the ordinary voting power or, in the case of a partnership, more than 50% of
the general partnership interests are, as of such date, owned, controlled or
held, or (b) that is, as of such date, otherwise Controlled, by the parent
or one or more subsidiaries of the parent or by the parent and one or more
subsidiaries of the parent.

“Subsidiary” means
any subsidiary of the Parent Borrower.

“Subsidiary Loan Parties”
means, collectively, the Domestic Subsidiary Loan Parties and the Foreign
Subsidiary Loan Parties.

“Swap Agreement”
means any agreement with respect to any swap, forward, future or derivative
transaction or option or similar agreement involving, or settled by reference
to, one or more rates, currencies, commodities, equity or debt instruments or
securities, or economic, financial or pricing indices or measures of economic,
financial or pricing risk or value or any similar transaction or any
combination of these transactions, provided that no phantom stock or
similar plan providing for payments only on account of services provided by
current or former directors, officers, employees or consultants of Holdings,
the Parent Borrower or the Subsidiaries shall be a Swap Agreement.

“Swap Obligations” of
a Person means any and all obligations of such Person, whether absolute or
contingent and howsoever and whensoever created, arising, evidenced or acquired
(including all renewals, extensions and modifications thereof and substitutions
therefor), under (a) any and all Swap Agreements and (b) any and all
cancellations, buy backs, reversals, terminations or assignments of any Swap
Agreement transaction.

“Swingline Commitment”
means the commitment of the Swingline Lender to make Swingline Loans.

“Swingline Lender”
means JPMorgan Chase Bank, N.A., in its capacity as lender of Swingline Loans
hereunder (or, with respect to Swingline Loans made to the Canadian Subsidiary
Borrower, JPMorgan Chase Bank, N.A., Toronto Branch).

“Swingline Loan”
means a Loan made pursuant to Section 2.04.

“Taxes” means any and
all present or future taxes, levies, imposts, duties, deductions, charges or
withholdings imposed by any Governmental Authority.

“Total Borrowing Base”
means, at any time, the aggregate of the Domestic Borrowing Base and the
Canadian Borrowing Base at such time.

“Total L/C Exposure”
means, at any time, the aggregate of the U.S. L/C Exposure and the U.S. Dollar
Equivalent of the Canadian L/C Exposure at such time.

“Total Swingline Exposure”
means, at any time, the aggregate of the U.S. Swingline Exposure and the U.S.
Dollar Equivalent of the Canadian Swingline Exposure at such time.  The Total Swingline Exposure of any Lender at
any time shall be its Applicable Percentage of the Total Swingline Exposure at
such time.

“Tranche” means a
category of Commitments utilized in making Loans, issuing Letters of Credit and
accepting and purchasing B/As hereunder, with there being three separate
Tranches, i.e., (a) U.S. Revolving Loans and Letters of Credit
issued to the Parent Borrower and the Domestic

 42
 

 

Subsidiaries,
(b) Canadian Revolving Loans, Letters of Credit issued to the Canadian
Subsidiary Borrower and the Foreign Subsidiaries and B/A Drawings and
(c) the Swingline Loans.

“Transactions” means,
collectively, (a) the Equity Contributions, (b) the Acquisition and
the other transactions contemplated by the Acquisition Documents, (c) the
execution, delivery and performance by each Loan Party of each Loan Document to
which it is a party and, in the case of the Borrowers, the making of the
initial Borrowings hereunder and, to the extent requested, the initial issuance
of Letters of Credit and the initial acceptance and purchase of B/As hereunder,
(d) the execution, delivery and performance by Holdings, the Parent
Borrower and each Domestic Subsidiary Loan Party of the Senior Secured Notes
Documents to which it is a party, (e) the issuance of the Senior Secured Notes
and the use of the proceeds thereof, (f) the consummation of the
amalgamation of the Canadian Subsidiary Borrower with the Canadian Company, (g)
the consummation of any other transactions in connection with the foregoing and
(h) the payment of the fees and expenses incurred in connection with any of the
foregoing.

“Type”, when used in
reference to any Loan or Borrowing, refers to whether the rate of interest on
such Loan, or on the Loans comprising such Borrowing, is determined by
reference to the Adjusted LIBO Rate, the Alternate Base Rate, the U.S. Base
Rate or the Canadian Base Rate.

“UCC” means the
Uniform Commercial Code as in effect from time to time in the State of New York
or any other state the laws of which are required to be applied in connection
with the issue of perfection of security interests.

“U.K. Charge of Shares”
means the U.K. Charge of Shares, substantially in the form of Exhibit G-3,
among the Canadian Subsidiary Borrower, each Subsidiary Loan Party party
thereto and the Administrative Agent.

“Unliquidated Obligations”
means, at any time, any Secured Obligations (or portion thereof) that are
contingent in nature or unliquidated at such time, including any Secured
Obligation that is (a) an obligation to reimburse a bank for drawings not yet
made under a letter of credit issued by it, (b) any other obligation
(including any guarantee or indemnity) that is contingent in nature at such
time or (c) an obligation to provide collateral to secure any of the foregoing
types of obligations.

“U.S. Base Rate”
means, for any day, the rate of interest per annum equal to the greater of
(a) the interest rate per annum publicly announced from time to time by
the Administrative Agent as its reference rate in effect on such day at its
principal office in Toronto for determining interest rates applicable to
commercial loans denominated in U.S. Dollars in Canada and (b) the Federal
Funds Effective Rate in effect on such day plus 1⁄2 of 1%.  Any change in the U.S. Base Rate due to a
change in such reference rate or the Federal Funds Effective Rate shall be
effective as of the opening of business on the effective day of such change in
the reference rate or the Federal Funds Effective Rate, respectively.

“U.S. Company” means
Indalex Inc., a Delaware corporation.

“U.S. Dollar Equivalent”
means, on any date of determination, (a) with respect to any amount in U.S.
Dollars, such amount, and (b) with respect to any amount in Canadian Dollars,
the equivalent in U.S. Dollars of such amount, determined by the Administrative
Agent pursuant to Section 1.05 using the Exchange Rate with respect to
such currency at that time in effect under the provisions of such Section.

“U.S. Dollars” or “$”
means lawful money of the United States of America.

 43
 

 

“U.S. Guaranteed
Obligations” has the meaning assigned to such term in Section 10.01(a).

“U.S. L/C Disbursement”
means a payment made by the Issuing Bank pursuant to a Letter of Credit issued
for the account of the Parent Borrower or for the account of any Domestic
Subsidiary.

“U.S. L/C Exposure”
means, at any time, the sum of (a) the aggregate undrawn amount of all
outstanding Letters of Credit issued for the account of the Parent Borrower and
the Domestic Subsidiaries at such time, plus (b) the aggregate amount of
all U.S. L/C Disbursements that have not yet been reimbursed (including by the
making of Loans hereunder) by or on behalf of the Parent Borrower and the
Domestic Subsidiaries at such time.  The
U.S. L/C Exposure of any Lender at any time shall be its Applicable Percentage
of the U.S. L/C Exposure at such time.

“U.S. Lending Office”
means, as to any Lender, the applicable branch, office or Affiliate of such
Lender designated by such Lender to make Loans to the Parent Borrower.

“U.S. Loan Guarantor”
means Holdings, each Domestic Subsidiary Loan Party and, with respect to the
Canadian Secured Obligations, the Parent Borrower.

“U.S. Mortgage” means
a mortgage, deed of trust, assignment of leases and rents, leasehold mortgage
or other security document (including any amendment, modification or supplement
thereto) granting a Lien on any Mortgaged Property located in the United States
of America or any state thereof to secure the U.S. Secured Obligations and/or
the Canadian Secured Obligations, as the case may be.  Each U.S. Mortgage shall be reasonably
satisfactory in form and substance to the Administrative Agent.

“U.S. Non-Paying
Guarantor” has the meaning assigned to such term in Section 10.10(a).

“U.S. Obligations”
means (a) all unpaid principal of and accrued and unpaid interest on the Loans
made to the Parent Borrower, (b) all U.S. L/C Exposure in respect of Letters of
Credit issued for the account of the Parent Borrower and the Domestic
Subsidiaries and (c) all accrued and unpaid fees and all expenses,
reimbursements, indemnities and other obligations of Holdings, the Parent
Borrower and the Domestic Subsidiary Loan Parties owed to the Lenders or to any
Lender, the Administrative Agent, the Issuing Bank or any indemnified party
arising under the Loan Documents (including the Guarantees provided by the U.S.
Loan Guarantors pursuant to Article X).

“U.S. Paying Guarantor”
has the meaning assigned to such term in Section 10.10(a).

“U.S. Revolving Exposure”
means, at any time, the sum of (a) the outstanding principal amount of U.S.
Revolving Loans at such time, (b) the U.S. L/C Exposure at such time and (c)
the U.S. Swingline Exposure at such time. 
The U.S. Revolving Exposure of any Lender at any time shall be such
Lender’s Applicable Percentage of the U.S. Revolving Exposure at such time.

“U.S. Revolving Loan”
means a Loan made by pursuant to Section 2.01(a).  Each U.S. Revolving Loan shall be an ABR
Revolving Loan or a Eurodollar Revolving Loan.

“U.S. Secured Obligations”
means all U.S. Obligations, together with (a) Banking Services Obligations of
Holdings, the Parent Borrower and the Domestic Subsidiary Loan Parties and (b)
Swap Obligations entered into by Holdings, the Parent Borrower and the Domestic
Subsidiary Loan Parties owing to one or more Lenders or their respective
Affiliates, provided that at or prior to the time

 44
 

 

that
any transaction relating to any such Swap Obligation is executed, the Lender or
applicable Affiliate, in each case party thereto (other than JPMorgan Chase
Bank, N.A. or any of its Affiliates) shall have delivered written notice to the
Administrative Agent that such a transaction has been or will be entered into
and that it constitutes a Secured Obligation entitled to the benefits of the
Collateral Documents.

“U.S. Swingline Exposure”
means, at any time, the aggregate principal amount of all Swingline Loans made
to the Parent Borrower at such time.  The
U.S. Swingline Exposure of any Lender at any time shall be its Applicable
Percentage of the U.S. Swingline Exposure at such time.

“wholly-owned subsidiary”
means, with respect to any Person at any date, a subsidiary of such Person of
which securities or other ownership interests representing 100% of the Equity
Interests (other than directors’ qualifying shares) are, as of such date,
owned, controlled or held by such Person or one or more wholly-owned
Subsidiaries of such Person or by such Person and one or more wholly-owned
Subsidiaries of such Person.  For
purposes of this Agreement, “wholly-owned Subsidiary” means a direct or
indirect wholly-owned subsidiary of the Parent Borrower.

“Withdrawal Liability”
means liability to a Multiemployer Plan as a result of a complete or partial
withdrawal from such Multiemployer Plan, as such terms are defined in
Part I of Subtitle E of Title IV of ERISA.

SECTION 1.02.  Classification
of Loans and Borrowings.  For
purposes of this Agreement, (a) Loans may be classified and referred to by
Tranche (e.g., a “U.S. Revolving Loan”) or by Type (e.g., a “Eurodollar
Loan”) or by Tranche and Type (e.g., a “Eurodollar U.S. Revolving Loan”).  Borrowings also may be classified and
referred to by Tranche (e.g., a “U.S. Revolving Borrowing”) or by Type (e.g.,
a “Eurodollar Borrowing”) or by Tranche and Type (e.g., a “Eurodollar
U.S. Revolving Borrowing”) and (b) “Revolving Borrowings” means the U.S.
Revolving Borrowings, the Canadian Revolving Borrowings or both, as the context
may require.

SECTION 1.03.  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, amended and restated, supplemented or
otherwise modified (subject to any restrictions on such amendments, 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 Articles, Sections, Exhibits and
Schedules shall be construed to refer to Articles and Sections of, and Exhibits
and Schedules to, this Agreement, (e) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, securities,
accounts and contract rights and (f) any reference to any Requirement of Law
shall, unless otherwise specified, refer to such Requirement of Law as amended,
modified or supplemented from time to time.

SECTION
1.04.  Accounting Terms; GAAP.  Except as otherwise expressly provided
herein, all terms of an accounting or financial nature shall be construed in
accordance with GAAP, as in effect from time to time, consistently applied, provided
that if the Parent Borrower notifies the Administrative Agent that the Parent
Borrower requests an amendment to any provision hereof (including any defined
term) to eliminate the effect of any change occurring after the date hereof in
GAAP or in the

 45

 

application
thereof on the operation of such provision (or if the Administrative Agent
notifies the Parent Borrower that the Required Lenders request an amendment to
any provision (including any definition) hereof for such purpose), regardless
of whether any such notice is given before or after such change in GAAP or in
the application thereof, then such provision shall be interpreted on the basis
of GAAP as in effect and applied immediately before such change shall have
become effective until such notice shall have been withdrawn or such
provision  amended in accordance
herewith.  Upon any such request for an
amendment, the Parent Borrower, the Required Lenders and the Administrative
Agent agree to consider in good faith any such amendment in order to amend the
provisions of this Agreement so as to reflect equitably such accounting changes
so that the criteria for evaluating the Parent Borrower’s financial condition
shall be the same after such accounting changes as if such accounting changes
had not occurred.  In no event shall any
capital stock be deemed to constitute Indebtedness or any payment of any
dividend or distribution thereon be deemed to constitute interest solely as a
result of the application of Financial Accounting Standards No. 150.

SECTION 1.05.  Currency
Translation.  (a)  Except as specifically provided in clause (b)
of this Section 1.05, for purposes of determining compliance as of any date
with the terms of any Loan Document (other than the limits and sublimits for
Revolving Exposure set forth in Article II of this Agreement), amounts incurred
or outstanding in Canadian Dollars shall be translated into U.S. Dollars at the
exchange rates in effect on the first Business Day of the fiscal quarter in
which such determination occurs or in respect of which such determination is
being made, as such exchange rates shall be determined in good faith by the
Parent Borrower.  No Default or Event of
Default shall arise as a result of any limitation or threshold set forth in
U.S. Dollars in any Loan Document (other than the limits and sublimits for
Revolving Exposure set forth in Article II of this Agreement) being exceeded
solely as a result of changes in currency exchange rates from those rates
applicable on the first day of the fiscal quarter in which such determination
occurs or in respect of which such determination is being made.

(b)  (i)The Administrative Agent
shall determine the U.S. Dollar Equivalent of any Letter of Credit denominated
in Canadian Dollars, as well as of each component of the Domestic Borrowing
Base and the Canadian Borrowing Base, as of each date (with such date to be
reasonably determined by the Administrative Agent) that is on or about the date
of each request for the issuance, amendment, renewal or extension of such
Letter of Credit, using the Exchange Rate for the applicable currency in
relation to U.S. Dollars in effect on the date of determination, and each such
amount shall be the U.S. Dollar Equivalent of such Letter of Credit (or such
Domestic Borrowing Base component or Canadian Borrowing Base component, as the
case may be) until the next required calculation thereof pursuant to this
paragraph (b)(i) (or, in the case of such Domestic Borrowing Base component or
Canadian Borrowing Base component, pursuant to paragraph (b)(ii) or (b)(v)) of
this Section 1.05.

(ii) The
Administrative Agent shall determine the U.S. Dollar Equivalent of any
Borrowing denominated in Canadian Dollars or any B/A accepted and purchased
under Section 2.06, as well as of each component of the Domestic Borrowing Base
and the Canadian Borrowing Base, as of each date (with such date to be
reasonably determined by the Administrative Agent) that is on or about the date
of a Borrowing Request, Interest Election Request or request for an acceptance
and purchase of B/As with respect to any such Borrowing or B/A, or as of each
date of any termination or reduction of Commitments hereunder or the prepayment
of Loans hereunder, in each case using the Exchange Rate for the applicable
currency in relation to U.S. Dollars in effect on the date of determination,
and each such amount shall be the U.S. Dollar Equivalent of such Borrowing or
B/A (or such Domestic Borrowing Base component or Canadian Borrowing Base
component, as the case may be) until the next required calculation thereof
pursuant to this paragraph (b)(ii) (or, in the case of such Domestic Borrowing
Base component or Canadian Borrowing Base component, pursuant to paragraph
(b)(i) or

 46
 

 

(b)(v)) of this Section 1.05.

(iii) The U.S.
Dollar Equivalent of any Canadian L/C Disbursement made by the Issuing Bank in
Canadian Dollars and not reimbursed by the Canadian Subsidiary Borrower shall
be determined as set forth in paragraphs (e) or (k) of Section 2.05,
as applicable.  In addition, the U.S.
Dollar Equivalent of the Canadian L/C Exposure shall be determined as set forth
in paragraph (k) of Section 2.05, at the time and in the
circumstances specified therein.

(iv) The
Administrative Agent shall notify the Borrowers, the applicable Lenders and the
Issuing Bank of each calculation of the U.S. Dollar Equivalent of each Letter
of Credit, Borrowing, B/A accepted and purchased hereunder and L/C
Disbursement.

(v) In
addition to the requirements set forth in paragraphs (b)(i) and (b)(ii) of this
Section 1.05, the Administrative Agent shall determine the U.S. Dollar
Equivalent of each applicable component of the Domestic Borrowing Base and the
Canadian Borrowing Base as of each date (with such date to be reasonably
determined by the Administrative Agent) that is on or about the date of
delivery of each Borrowing Base Certificate hereunder, in each case using the
Exchange Rate for the applicable currency in relation to U.S. Dollars in effect
on the date of determination, and each such amount shall be the U.S. Dollar
Equivalent of such Domestic Borrowing Base component or Canadian Borrowing Base
component until the next required calculation thereof pursuant to paragraph
(b)(i), (b)(ii) or (b)(v) of this Section 1.05.

ARTICLE II

The Credits

SECTION 2.01.  Commitments.  Subject to the terms and conditions set forth
herein,

(a)  each Lender agrees to make
Loans to the Parent Borrower in U.S. Dollars, from time to time during the
Availability Period, in an aggregate principal amount that will not result in
(i) such Lender’s Revolving Exposure exceeding such Lender’s Revolving
Commitment, (ii) the U.S. Revolving Exposure exceeding the Domestic Borrowing
Base then in effect or (iii) the aggregate Revolving Exposure exceeding the
lesser of (A) the aggregate Revolving Commitments and (B) an amount equal to
(x) the Total Borrowing Base then in effect minus (y) the Availability
Block; and

(b)  each Lender agrees to make
Loans to the Canadian Subsidiary Borrower in Canadian Dollars and/or U.S.
Dollars and/or to accept and purchase, or arrange for the acceptance and
purchase of, drafts drawn by the Canadian Subsidiary Borrower in Canadian
Dollars as B/As, from time to time during the Availability Period, in an
aggregate principal amount that will not result in (i) such Lender’s Canadian
Revolving Exposure exceeding such Lender’s Canadian Revolving Sub-Commitment,
(ii) such Lender’s Revolving Exposure exceeding such Lender’s Revolving
Commitment, (iii) the Canadian Revolving Exposure exceeding the lesser of (A)
the aggregate Canadian Revolving Sub-Commitments and (B) the Canadian Borrowing
Base then in effect or (iv) the aggregate Revolving Exposure exceeding the
lesser of (A) the aggregate Revolving Commitments and (B) an amount equal to
(x) the Total Borrowing Base then in effect minus (y) the Availability
Block, provided that all such Loans, or drafts drawn as B/As, as the
case may be, shall be made, or accepted and purchased, as the case may be, by
such Lender’s Canadian Lending Office, unless the applicable Lender has
delivered to the Canadian Subsidiary Borrower a notice pursuant to
Section 9.21 in respect thereof.

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Within the
foregoing limits and subject to the terms and conditions set forth herein, the
Borrowers may borrow, prepay and reborrow Revolving Loans.

SECTION 2.02.  Loans and
Borrowings.  (a)  Each Loan (other than a Swingline Loan) shall
be made as part of a Borrowing consisting of Loans of the same Tranche and Type
made by the Lenders (i) in the case of U.S. Revolving Borrowings, ratably in
accordance with their respective Revolving Commitments as of the date of
borrowing, and (ii) in the case of Canadian Revolving Borrowings, ratably in
accordance with their respective Canadian Revolving Sub-Commitment as of the
date of borrowing.  Any Swingline Loan
shall be made in accordance with the procedures set forth in Section 2.04.  Any failure of any Lender to make any Loan
required to be made by it shall not relieve any other Lender of its obligations
hereunder, provided that each of the Revolving Commitments and Canadian
Revolving Sub-Commitments of the Lenders are several and no Lender shall be
responsible for any other Lender’s failure to make Loans as required.

(b)  Subject to
Section 2.14, (i) each U.S. Revolving Borrowing shall be comprised
entirely of ABR Revolving Loans or Eurodollar Revolving Loans as the Parent
Borrower may request in accordance herewith and (ii) each Canadian Revolving
Borrowing (A) denominated in U.S. Dollars shall be comprised entirely of U.S.
Base Rate Revolving Loans or Eurodollar Revolving Loans, as the Canadian
Subsidiary Borrower may request in accordance herewith, and (B) denominated in
Canadian Dollars shall be comprised entirely of Canadian Base Rate Revolving
Loans, provided that all Revolving Borrowings made on the Effective Date
must be made as ABR Borrowings, U.S. Base Rate Borrowings or Canadian Base Rate
Borrowings, but may be converted into Eurodollar Borrowings (in the case of
U.S. Dollar-denominated Borrowings) or B/A Drawings (in the case of Canadian
Dollar-denominated Borrowings), in each case in accordance with
Section 2.08.  No B/A Drawing may be
made on the Effective Date.  Each
Swingline Loan (x) made to the Parent Borrower shall be an ABR Loan and (y)
made to the Canadian Subsidiary Borrower and denominated in (1) U.S. Dollars
shall be a U.S. Base Rate Loan and (2) Canadian Dollars shall be a Canadian
Base Rate Loan.  Subject to Section 2.19,
each Lender at its option may make any Eurodollar Loan by causing any domestic
or foreign branch or Affiliate of such Lender to make such Loan, provided
that any exercise of such option shall not affect the obligation of the
applicable Borrower to repay such Loan in accordance with the terms of this
Agreement.

(c)  At the commencement of each
Interest Period for any Eurodollar Revolving Borrowing, such Borrowing shall be
in an aggregate amount that is an integral multiple of $1,000,000 and not less
than $5,000,000.  At the time that (i)
each ABR Revolving Borrowing is made, such Borrowing shall be in an aggregate
amount that is an integral multiple of $500,000 and not less than $1,000,000,
(ii) each U.S. Base Rate Revolving Borrowing is made, such Borrowing shall be
in an aggregate amount that is an integral multiple of $500,000 and not less
than $1,000,000, and (iii) each Canadian Base Rate Revolving Borrowing is made,
such Borrowing shall be in an aggregate amount that is an integral multiple of
C$500,000 and not less than C$1,000,000. 
Each Swingline Loan shall be in an amount that is an integral multiple
of (x) in the case of Swingline Loans denominated in U.S. Dollars, $250,000 and
not less than $500,000 and (y) in the case of Swingline Loans denominated in
Canadian Dollars, C$250,000 and not less than C$500,000.  Borrowings of more than one Tranche and Type
may be outstanding at the same time, provided that there shall not at
any time be more than a total of eight Eurodollar Revolving Borrowings
outstanding.  Notwithstanding anything to
the contrary herein, (A) an ABR Revolving Borrowing or a Swingline Loan made to
the Parent Borrower may be in an aggregate amount that is equal to the entire
unused balance of the aggregate Revolving Commitments or that is required to
finance the reimbursement of an L/C Disbursement as contemplated by Section
2.05(e) and (B) a U.S. Base Rate Revolving Borrowing, Canadian Base Rate
Revolving Borrowing or a Swingline Loan made to the Canadian Subsidiary
Borrower may be in an aggregate amount which is equal to (or, in the case of a
Canadian Base Rate Revolving Borrowing or a Swingline Loan denominated in
Canadian Dollars, the U.S. Dollar Equivalent of which is equal to) the entire
unused balance of the aggregate Canadian

 48
 

 

Revolving
Sub-Commitments or that is required to finance the reimbursement of an L/C
Disbursement as contemplated by Section 2.05(e).

(d)  Notwithstanding any other
provision of this Agreement, the applicable Borrower shall not be entitled to
request, or to elect to convert or continue, any Revolving Borrowing if the
Interest Period requested with respect thereto would end after the Maturity
Date.

SECTION 2.03.  Requests for
Revolving Borrowings.  To request a
Revolving Borrowing, the applicable Borrower shall notify the Administrative
Agent of such request either in writing (delivered by hand or facsimile) in a
form approved by the Administrative Agent and signed by the applicable Borrower
or by telephone (a) in the case of a Eurodollar Revolving Borrowing, not later
than 12:00 noon, Local Time, three Business Days before the date of the
proposed Borrowing, (b) in the case of an ABR Revolving Borrowing, not
later than 12:00 noon, New York City time, one Business Day before the date of
the proposed Borrowing, provided that any such notice of an ABR
Revolving Borrowing to finance the reimbursement of an L/C Disbursement as
contemplated by Section 2.05(e) may be given not later than 11:00 a.m.,
New York City time, on the date of the proposed Borrowing, (c) in the case of a
Canadian Base Rate Revolving Borrowing, not later than 12:00 p.m., Toronto
time, one Business Day before the date of the proposed borrowing, provided
any such notice of a Canadian Base Rate Revolving Borrowing to finance the
reimbursement of an L/C Disbursement as contemplated by Section 2.05(e) may be
given not later than 11:00 a.m., Toronto time, on the date of the proposed
Borrowing, and (d) in the case of a U.S. Base Rate Revolving Borrowing, not
later than 12:00 noon, Toronto time, one Business Day before the date of the
proposed Borrowing.  Each such Borrowing
Request shall be irrevocable and, if telephonic, shall be confirmed promptly by
hand delivery or facsimile to the Administrative Agent of a written Borrowing
Request in a form approved by the Administrative Agent and signed by the
applicable Borrower.  Each such written
and telephonic Borrowing Request shall specify the following information:

(i) the
Borrower requesting such Borrowing;

(ii) whether
such Borrowing is to be a U.S. Revolving Borrowing or a Canadian Revolving
Borrowing;

(iii) the
currency and aggregate amount of such Borrowing;

(iv) the date
of such Borrowing, which shall be a Business Day;

(v) whether
such Borrowing is to be an ABR Revolving Borrowing, U.S. Base Rate Revolving
Borrowing, Canadian Base Rate Revolving Borrowing or Eurodollar Revolving
Borrowing;

(vi) in the
case of a Eurodollar Revolving Borrowing, the initial Interest Period to be
applicable thereto, which shall be a period contemplated by the definition of
the term “Interest Period”;

(vii) the
location and number of the applicable Borrower’s account to which funds are to
be disbursed, which shall comply with the requirements of Section 2.07; and

(viii) that as
of such date Section 4.02(a) is satisfied.

If no election as to the
Type of Revolving Borrowing is specified, then the requested Borrowing shall be
(A) in the case of a U.S. Revolving Borrowing, an ABR Revolving Borrowing, and
(B) in the case of a

 49
 

 

Canadian Revolving
Borrowing, a Canadian Base Rate Revolving Borrowing.  If no Interest Period is specified with
respect to any requested Eurodollar Revolving Borrowing, then the applicable
Borrower shall be deemed to have selected an Interest Period of one month’s
duration.  Promptly following receipt of
a Borrowing Request in accordance with this Section 2.03, the Administrative
Agent shall advise each Lender of the details thereof and the amount of such
Lender’s Loan to be made as part of the requested Borrowing.  If no currency is specified with respect to
any Canadian Revolving Borrowing, then the currency of such Canadian Revolving
Borrowing shall be Canadian Dollars (unless the applicable Borrowing Request
otherwise specified that such Borrowing shall be a U.S. Base Rate Canadian
Revolving Borrowing or a Eurodollar Canadian Revolving Borrowing, in which case
the currency of such Canadian Revolving Borrowing shall be U.S. Dollars).

SECTION 2.04.  Swingline
Loans.  (a)  Subject to the terms and conditions set forth
herein, the Swingline Lender agrees to make Swingline Loans to the Parent
Borrower and the Canadian Subsidiary Borrower, from time to time during the
Availability Period, in an aggregate principal amount at any time outstanding
that will not result in (i) the U.S. Dollar Equivalent of the aggregate
principal amount of outstanding Swingline Loans exceeding $5,000,000, (ii) the
U.S. Revolving Exposure exceeding the Domestic Borrowing Base then in effect,
(iii) the Canadian Revolving Exposure exceeding the lesser of (A) the aggregate
Canadian Revolving Sub-Commitments and (B) the Canadian Borrowing Base then in
effect or (iv) the aggregate Revolving Exposure exceeding the lesser of (A) the
aggregate Revolving Commitments and (B) an amount equal to (x) the Total
Borrowing Base then in effect minus (y) the Availability Block, provided
that the Swingline Lender shall not be required to make a Swingline Loan to
refinance an outstanding Swingline Loan. 
Within the foregoing limits and subject to the terms and conditions set
forth herein, the Parent Borrower may borrow, prepay and reborrow Swingline
Loans.

(b)  To request a Swingline Loan,
the applicable Borrower shall notify the Administrative Agent of such request by
telephone (confirmed by facsimile) not later than 12:00 noon, Local Time, on
the day of a proposed Swingline Loan. 
Each such telephonic request shall be irrevocable and shall specify the
requested date (which shall be a Business Day) and amount of the requested
Swingline Loan.  The Administrative Agent
will promptly advise the Swingline Lender of any such request received from the
applicable Borrower.  The Swingline
Lender shall make each Swingline Loan available to the applicable Borrower by
means of a credit to the applicable Funding Account (or, in the case of a
Swingline Loan made to finance the reimbursement of an L/C Disbursement as
provided in Section 2.05(e), by remittance to the Issuing Bank or, to the
extent that the Lenders have made payments pursuant to Section 2.05(e) to
reimburse the Issuing Bank, to such Lenders and the Issuing Bank as their
interests may appear, or, in the case of repayment of another Loan or fees or
expenses as provided by Section 2.18(c), by remittance to the Administrative
Agent to be distributed to the Lenders) by 3:00 p.m., Local Time, on the
requested date of such Swingline Loan.

(c)  The Swingline Lender may by
written notice given to the Administrative Agent not later than 12:00 noon,
Local Time, on any Business Day, require the Lenders to acquire participations
on such Business Day in all or a portion of the Swingline Loans
outstanding.  Such notice shall specify
the aggregate amount of Swingline Loans in which Lenders will participate.  Promptly upon receipt of such notice, the
Administrative Agent will give notice thereof to each Lender, specifying in
such notice such Lender’s Applicable Percentage of such Swingline Loan or
Loans.  Each Lender hereby absolutely and
unconditionally agrees, upon receipt of notice as provided above, to pay to the
Administrative Agent, for the account of the Swingline Lender, such Lender’s
Applicable Percentage of such Swingline Loan or Loans.  Each Lender acknowledges and agrees that its
obligation to acquire participations in Swingline Loans pursuant to this
paragraph is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including the occurrence and continuance of a Default
or reduction or termination of the Commitments, and that each such payment shall
be made without any offset, abatement, withholding or reduction
whatsoever.  Each Lender shall comply
with its obligation under this

 50
 

 

paragraph by
wire transfer of immediately available funds, in the same manner as provided in
Section 2.07 with respect to Loans made by such Lender (and
Section 2.07 shall apply, mutatis  mutandis, to the payment
obligations of the Lenders), and the Administrative Agent shall promptly pay to
the Swingline Lender the amounts so received by it from the Lenders.  The Administrative Agent shall notify the
applicable Borrower of any participations in any Swingline Loan acquired
pursuant to this paragraph and, thereafter, payments in respect of such
Swingline Loan shall be made to the Administrative Agent and not to the
Swingline Lender.  Any amounts received
by the Swingline Lender from a Borrower (or other party on behalf of such
Borrower) in respect of a Swingline Loan after receipt by the Swingline Lender
of the proceeds of a sale of participations therein shall be promptly remitted
to the Administrative Agent; any such amounts received by the Administrative
Agent shall be promptly remitted by the Administrative Agent to the Lenders
that shall have made their payments pursuant to this paragraph and to the
Swingline Lender, as their interests may appear, provided that any such
payment so remitted shall be repaid to the Swingline Lender or to the
Administrative Agent, as applicable, if and to the extent such payment is
required to be refunded to such Borrower for any reason.  The purchase of participations in a Swingline
Loan pursuant to this paragraph shall not relieve the applicable Borrower of
any default in the payment thereof.

SECTION 2.05.  Letters of
Credit.  (a)  General.  Subject to the terms and conditions set forth
herein, at any time and from time to time during the Availability Period, (i)
each Borrower may request the issuance of Letters of Credit for its own
account, (ii) the Parent Borrower may request the issuance of Letters of Credit
for the account of any Domestic Subsidiary (so long as the Parent Borrower and
such Domestic Subsidiary are co-applicants in respect of such Letter of Credit)
and (iii) the Canadian Subsidiary Borrower may request the issuance of
Letters of Credit for the account of any Foreign Subsidiary (so long as the
Canadian Subsidiary Borrower and such Foreign Subsidiary are co-applicants in
respect of such Letter of Credit), in each case, in a form reasonably
acceptable to the Administrative Agent and the Issuing Bank.  All Letters of Credit issued shall be
denominated in (A) U.S. Dollars, in the case of Letters of Credit issued for
the account of the Parent Borrower or any Domestic Subsidiary, and
(B) Canadian Dollars, in the case of Letters of Credit issued for the
account of the Canadian Subsidiary Borrower or any Foreign Subsidiary.  In the event of any inconsistency between the
terms and conditions of this Agreement and the terms and conditions of any form
of letter of credit application or other agreement submitted by the applicable
Borrower or Subsidiary to, or entered into by the applicable Borrower or
Subsidiary with, the Issuing Bank relating to any Letter of Credit, the terms
and conditions of this Agreement shall control.

(b)  Notice of Issuance,
Amendment, Renewal, Extension; Certain Conditions.  To request the issuance of a Letter of Credit
(or the amendment, renewal or extension of an outstanding Letter of Credit),
the applicable Borrower (and, as applicable, Subsidiary) shall hand deliver or
facsimile (or transmit by electronic communication, if arrangements for doing
so have been approved by the Issuing Bank) to the Issuing Bank and the
Administrative Agent (reasonably in advance of the requested date of issuance,
amendment, renewal or extension) a notice (i) requesting the issuance of a
Letter of Credit or identifying the Letter of Credit to be amended, renewed or
extended, (ii) specifying the date of such issuance, amendment, renewal or
extension (which shall be a Business Day), (iii) the date on which such Letter
of Credit is to expire (which shall comply with paragraph (c) of this
Section 2.05), (iv) the amount of such Letter of Credit, (v) the name and
address of the beneficiary thereof and (vi) such other information as shall be
necessary to prepare, issue, amend, renew or extend such Letter of Credit.  The applicable Borrower (and, as applicable,
Subsidiary) shall also submit a letter of credit application on the Issuing
Bank’s standard form in connection with any request for the issuance of a
Letter of Credit.  A Letter of Credit shall
be issued, amended, renewed or extended only if (and, upon issuance, amendment,
renewal or extension of each Letter of Credit, the applicable Borrower (and, as
applicable, Subsidiary) shall be deemed to represent and warrant that), after
giving effect to such issuance, amendment, renewal or extension (A) the
Total L/C Exposure shall not exceed $30,000,000, (B) the aggregate Revolving

 51
 

 

Exposure shall
not exceed the lesser of (1) the aggregate Revolving Commitments and (2) an
amount equal to (x) the Total Borrowing Base then in effect minus (y)
the Availability Block, (C) in respect of Letters of Credit issued for the
account of the Parent Borrower or any Domestic Subsidiary, the U.S.
Revolving Exposure shall not exceed the Domestic Borrowing Base then in effect,
and (D) in respect of Letters of Credit issued for the account of the Canadian
Subsidiary Borrower or any Foreign Subsidiary, the Canadian Revolving Exposure
shall not exceed the lesser of (1) the aggregate Canadian Revolving
Sub-Commitments and (2) the Canadian Borrowing Base then in effect.

(c)  Expiration Date.  Each Letter of Credit shall expire at or
prior to the close of business on the earlier of (i) the date that is one
year after the date of the issuance of such Letter of Credit (or, in the case
of any renewal or extension thereof (including any automatic renewal or
extension), one year after such renewal or extension) and (ii) the date
that is five Business Days prior to the Maturity Date, provided that a
Letter of Credit may, upon the request of the applicable Borrower (or, as
applicable, Subsidiary), include a provision whereby such Letter of Credit
shall be renewed automatically for additional consecutive periods of one year
or less (but not beyond the date that is five Business Days prior to the
Maturity Date) unless the Issuing Bank notifies the beneficiary thereof at
least 30 days (or such longer period as the Administrative Agent and the
Issuing Bank shall approve) prior to the then-applicable expiration date that
such Letter of Credit will not be renewed, and provided  further
that a Letter of Credit may, upon the request of the applicable Borrower (and,
as applicable, Subsidiary) and subject to the consent of the Issuing Bank,
acting in its sole discretion, be renewed for a period beyond the date that is
five Business Days prior to the Maturity Date on terms and conditions
acceptable to the Issuing Bank (for purposes of clarity, no Lender will be
required to acquire a participation in such Letter of Credit after the Maturity
Date).

(d)  Participations.  By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) for the account
of the Parent Borrower, the Canadian Subsidiary Borrower or any Subsidiary and
without any further action on the part of the Issuing Bank or the Lenders, the
Issuing Bank hereby grants to each Lender, and each Lender hereby acquires from
the Issuing Bank, a participation in such Letter of Credit equal to such Lender’s
Applicable Percentage of the aggregate amount available to be drawn under such
Letter of Credit, provided that in the case of a Letter of Credit for
the account of the Canadian Subsidiary Borrower or any Foreign Subsidiary, such
participation shall be held by the applicable Lender’s Canadian Lending Office,
unless the applicable Lender has delivered to the Canadian Subsidiary Borrower
a notice pursuant to Section 9.21 in respect of such participation.  In consideration and in furtherance of the
foregoing, (i) each Lender hereby absolutely and unconditionally agrees to pay
to the Administrative Agent, for the account of the Issuing Bank, such Lender’s
Applicable Percentage of each U.S. L/C Disbursement made by the Issuing Bank
and not reimbursed by the Parent Borrower or applicable Domestic Subsidiary on
the date due as provided in paragraph (e) of this Section 2.05 or of any
reimbursement payment required to be refunded to the Parent Borrower or
applicable Domestic Subsidiary for any reason and (ii) each Lender hereby
absolutely and unconditionally agrees to pay to the Administrative Agent, for
the account of the Issuing Bank, such Lender’s Applicable Percentage of each
Canadian L/C Disbursement made by the Issuing Bank and not reimbursed by the
Canadian Subsidiary Borrower or applicable Foreign Subsidiary on the date due
as provided in paragraph (e) of this Section 2.05 or of any reimbursement
payment required to be refunded to the Canadian Subsidiary Borrower or
applicable Foreign Subsidiary for any reason. 
Each Lender acknowledges and agrees that its obligation to acquire
participations pursuant to this paragraph in respect of Letters of Credit is
absolute and unconditional and shall not be affected by any circumstance
whatsoever, including any amendment, renewal or extension of any Letter of
Credit or the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made
without any offset, abatement, withholding or reduction whatsoever.

 52
 

 

(e)  Reimbursement.  If the Issuing Bank shall make any L/C
Disbursement in respect of a Letter of Credit, the applicable Borrower or
Subsidiary shall reimburse such L/C Disbursement by paying to the
Administrative Agent an amount equal to such L/C Disbursement not later than
3:00 p.m., Local Time, on the date that such L/C Disbursement is made, if the
applicable Borrower or Subsidiary shall have received notice of such L/C
Disbursement prior to 10:00 a.m., Local Time, on such date, or, if such notice
has not been received by the applicable Borrower or Subsidiary prior to such
time on such date, then not later than (i) 3:00 p.m., Local Time, on the
Business Day that the applicable Borrower or Subsidiary receives such notice,
if such notice is received prior to 10:00 a.m., Local Time, on the day of
receipt, or (ii) 12:00 noon, Local Time, on the Business Day immediately
following the day that the applicable Borrower or Subsidiary receives such
notice, if such notice is not received prior to 10:00 a.m., Local Time, on the
day of receipt, provided that, if such L/C Disbursement is not less than
$500,000, the applicable Borrower or Subsidiary may, subject to the conditions
to borrowing set forth herein, request in accordance with Section 2.03 or 2.04
that such payment be financed with (A) in the case of a Letter of Credit issued
for the account of the Parent Borrower or any Domestic Subsidiary, an ABR
Revolving Borrowing or Swingline Loan made to the Parent Borrower, or
(B) in the case of a Letter of Credit issued for the account of the
Canadian Subsidiary Borrower or any Foreign Subsidiary, a Canadian Base Rate
Revolving Loan or a Swingline Loan made to the Canadian Subsidiary Borrower and
denominated in Canadian Dollars, in each case, in an equivalent amount and, to
the extent so financed, the obligation of the applicable Borrower or Subsidiary
to make such payment shall be discharged and replaced by the resulting ABR
Revolving Borrowing, Canadian Base Rate Revolving Borrowing or Swingline Loan,
as the case may be.  If the applicable
Borrower or Subsidiary fails to make such payment when due, the Administrative
Agent shall notify each Lender of the applicable L/C Disbursement, the payment
then due from the applicable Borrower or Subsidiary in respect thereof and such
Lender’s Applicable Percentage thereof. 
Promptly following receipt of such notice, each Lender shall pay to the
Administrative Agent its Applicable Percentage of the payment then due from the
applicable Borrower or Subsidiary, in the same manner as provided in
Section 2.07 with respect to Loans made by such Lender (and
Section 2.07 shall apply (other than with respect to any time limits set
forth therein), mutatis  mutandis, to the payment obligations of
the Lenders), and the Administrative Agent shall promptly pay to the Issuing
Bank the amounts so received by it from the Lenders.  Promptly following receipt by the
Administrative Agent of any payment from the applicable Borrower or Subsidiary
pursuant to this paragraph, the Administrative Agent shall distribute such
payment to the Issuing Bank or, to the extent that Lenders have made payments
pursuant to this paragraph to reimburse the Issuing Bank, then to such Lenders
and the Issuing Bank as their interests may appear.  Any payment made by a Lender pursuant to this
paragraph to reimburse the Issuing Bank for any L/C Disbursement (other than
the funding of ABR Revolving Loans, Canadian Base Rate Revolving Loans or
Swingline Loans as contemplated above) shall not constitute a Loan and shall
not relieve the applicable Borrower or Subsidiary of its obligation to reimburse
such L/C Disbursement.

(f)  Obligations Absolute.  The applicable Borrower or Subsidiary’s
obligation to reimburse L/C Disbursements as provided in paragraph (e) of
this Section 2.05 shall be absolute, unconditional and irrevocable and shall be
performed strictly in accordance with the terms of this Agreement under any and
all circumstances whatsoever and irrespective of (i) any lack of validity or
enforceability of any Letter of Credit or this Agreement or any term or
provision therein or herein, (ii) any draft or other document presented under a
Letter of Credit proving to be forged, fraudulent or invalid in any respect or
any statement therein being untrue or inaccurate in any respect, (iii) payment
by the Issuing Bank under a Letter of Credit against presentation of a draft or
other document that does not comply with the terms of such Letter of Credit or
(iv) any other event or circumstance whatsoever, whether or not similar to any
of the foregoing, that might, but for the provisions of this Section 2.05,
constitute a legal or equitable discharge of, or provide a right of setoff
against, the obligations of the applicable Borrower or Subsidiary
hereunder.  Neither the Administrative
Agent, the Lenders nor the Issuing Bank, nor any of their Related Parties,
shall have any liability or responsibility by reason of or in connection with
the

 53
 

 

issuance or
transfer of any Letter of Credit or any payment or failure to make any payment
thereunder (irrespective of any of the circumstances referred to in the preceding
sentence) or any error, omission, interruption, loss or delay in transmission
or delivery of any draft, notice or other communication under or relating to
any Letter of Credit (including any document required to make a drawing
thereunder), any reasonable error in interpretation of technical terms or any
consequence arising from causes beyond the control of the Issuing Bank, provided
that the foregoing shall not be construed to excuse the Issuing Bank from
liability to the applicable Borrower or Subsidiary to the extent of any direct
damages (as opposed to consequential damages, claims in respect of which are
hereby waived by such Borrower or Subsidiary to the extent permitted by
applicable law) suffered by the such Borrower or Subsidiary that are caused by
the Issuing Bank’s failure to exercise care when determining whether drafts and
other documents presented under a Letter of Credit comply with the terms
thereof.  The parties hereto expressly
agree that, in the absence of gross negligence or wilful misconduct on the part
of the Issuing Bank (as finally determined by a court of competent
jurisdiction), the Issuing Bank shall be deemed to have exercised care in each
such determination.  In furtherance of
the foregoing and without limiting the generality thereof, the parties agree
that, with respect to documents presented which appear on their face to be in
substantial compliance with the terms of a Letter of Credit, the Issuing Bank
may, in its sole discretion, either accept and make payment upon such documents
without responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and make payment upon such
documents if such documents are not in strict compliance with the terms of such
Letter of Credit, and any such acceptance or refusal shall be deemed not to
constitute gross negligence or wilful misconduct.

(g)  Disbursement Procedures.  The Issuing Bank shall, promptly following
its receipt thereof, examine all documents purporting to represent a demand for
payment under a Letter of Credit.  The
Issuing Bank shall promptly notify the Administrative Agent and the applicable
Borrower or Subsidiary by telephone (confirmed by facsimile) of such demand for
payment and whether the Issuing Bank has made or will make an L/C Disbursement
thereunder, provided that any failure to give or delay in giving such
notice shall not relieve such Borrower or Subsidiary of its obligation to
reimburse the Issuing Bank and the Lenders with respect to any such L/C
Disbursement in accordance with Section 2.05(e).

(h)  Interim Interest.  If the Issuing Bank shall make any L/C
Disbursement, then, unless the applicable Borrower or Subsidiary shall
reimburse such L/C Disbursement in full on the date such L/C Disbursement is
made, the unpaid amount thereof shall bear interest, for each day from and
including the date such L/C Disbursement is made to but excluding the date that
such Borrower or Subsidiary reimburses such L/C Disbursement, at the rate per
annum then applicable to (i) ABR Revolving Loans, in the case of Letters
of Credit issued for the account of the Parent Borrower or any Domestic
Subsidiary, or (ii) Canadian Base Rate Revolving Loans, in the case of Letters
of Credit issued for the account of the Canadian Subsidiary Borrower or any
Foreign Subsidiary, provided that, if the applicable Borrower or
Subsidiary fails to reimburse such L/C Disbursement when due pursuant to
paragraph (e) of this Section 2.05, then Section 2.13(c) shall apply.  Interest accrued pursuant to this paragraph
shall be for the account of the Issuing Bank, except that interest accrued on
and after the date of payment by any Lender pursuant to paragraph (e) of this
Section 2.05 to reimburse the Issuing Bank shall be for the account of such
Lender to the extent of such payment.

(i)  Replacement of the
Issuing Bank.  The Issuing Bank may
be replaced at any time by written agreement among the Parent Borrower, the
Administrative Agent, the replaced Issuing Bank and the successor Issuing
Bank.  The Administrative Agent shall
notify the Lenders of any such replacement of the Issuing Bank.  At the time any such replacement shall become
effective, the applicable Borrower shall pay all unpaid fees accrued for the
account of the replaced Issuing Bank pursuant to Section 2.12(b).  From and after the effective date of any such
replacement, (i) the successor Issuing Bank shall have all the rights and
obligations of the Issuing Bank under this Agreement with respect to Letters of
Credit to be

 54
 

 

issued
thereafter and (ii) references herein to the term “Issuing Bank” shall be
deemed to refer to such successor or to any previous Issuing Bank, or to such
successor and all previous Issuing Banks, as the context shall require.  After the replacement of an Issuing Bank
hereunder, the replaced Issuing Bank shall remain a party hereto and shall
continue to have all the rights and obligations of an Issuing Bank under this
Agreement with respect to Letters of Credit issued by it prior to such
replacement, but shall not be required to issue additional Letters of Credit.

(j)  Cash Collateralization.   If any Event of Default shall occur and be
continuing, on the Business Day that the Parent Borrower receives notice from
the Administrative Agent or the Required Lenders (or, if the maturity of the
Loans has been accelerated, the Lenders with a Total L/C Exposure representing
greater than 50% of the Total L/C Exposure) demanding the deposit of cash
collateral pursuant to this paragraph, (i) the Parent Borrower and the Canadian
Subsidiary Borrower shall deposit in an account with the applicable
Administrative Agent, in the name of the Administrative Agent and for the
benefit of the Lenders (each, an “L/C Collateral Account”), an amount in
cash equal to 105% of the U.S. L/C Exposure and the Canadian L/C Exposure,
respectively, as of such date plus accrued and unpaid interest thereon, provided
that the obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due and payable, without
demand or other notice of any kind, upon the occurrence of any Event of Default
with respect to the Parent Borrower described in clause (h) or (i) of
Article VII.  Such deposit shall be
held by the Administrative Agent as collateral for the payment and performance
of the Secured Obligations.  The
Administrative Agent shall have exclusive dominion and control, including the
exclusive right of withdrawal, over such accounts and the Borrowers hereby
grant the Administrative Agent a security interest in the L/C Collateral
Accounts.  Other than any interest earned
on the investment of such deposits, which investments shall be made at the
option and sole discretion of the Administrative Agent and at the Borrowers’
risk and expense, such deposits shall not bear interest.  Interest or profits, if any, on such
investments shall accumulate in such accounts. 
Moneys in such accounts shall be applied by the Administrative Agent to
reimburse the Issuing Bank for L/C Disbursements for which it has not been
reimbursed and, to the extent not so applied, shall be held for the
satisfaction of the reimbursement obligations of the Borrowers for the Total
L/C Exposure at such time or, if the maturity of the Loans has been accelerated
(but subject to the consent of Lenders with a Total L/C Exposure representing
greater than 50% of the Total L/C Exposure), be applied to satisfy other
Secured Obligations.  If any Borrower is
required to provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default, such amount (to the extent not applied as
aforesaid) shall be returned to the applicable Borrower within three Business
Days after all such Events of Defaults have been cured or waived.

(k) Conversion.  In the event that the Loans become
immediately due and payable on any date pursuant to Article VII, all amounts
(i) that the Canadian Subsidiary Borrower or any Foreign Subsidiary is at the
time or thereafter becomes required to reimburse or otherwise pay to the
Administrative Agent in respect of Canadian L/C Disbursements (other than
amounts in respect of which the Canadian Subsidiary Borrower has deposited cash
collateral pursuant to paragraph (j) above, if such cash collateral was
deposited in Canadian Dollars to the extent so deposited or applied), (ii) that
the Lenders are at the time or thereafter become required to pay to the
Administrative Agent and that the Administrative Agent is at the time or
thereafter becomes required to distribute to the Issuing Bank pursuant to
paragraph (e) of this Section 2.05 in respect of any unreimbursed Canadian L/C
Disbursements and (iii) of each Lender’s participation in any Letter of Credit
issued for the account of the Canadian Subsidiary Borrower or any Foreign
Subsidiary under which a Canadian L/C Disbursement has been made shall,
automatically and with no further action required, be converted into the U.S.
Dollar Equivalent, calculated using the Exchange Rates on such date (or, in the
case of any Canadian L/C Disbursement made after such date, on the date such Canadian
L/C Disbursement is made), of such amounts. 
On and after such conversion, all amounts accruing and owed to the
Administrative Agent, the

 55
 

 

Issuing
Bank or any Lender in respect of the obligations described in this paragraph
shall accrue and be payable in U.S. Dollars at the rates otherwise applicable
hereunder.

SECTION 2.06.  Canadian
Bankers’ Acceptances.  (a)  Each acceptance and purchase of B/As of a
single Contract Period pursuant to Section 2.01(b) or Section 2.08 shall be
made ratably by the Lenders in accordance with the amounts of their Canadian
Revolving Sub-Commitments.  The failure
of any Lender to accept any B/A required to be accepted by it shall not relieve
any other Lender of its obligations hereunder, provided that the
Canadian Revolving Sub-Commitments are several and no Lender shall be
responsible for any other Lender’s failure to accept B/As as required.

(b) The B/As of a single
Contract Period accepted and purchased on any date shall be in an aggregate
amount that is an integral multiple of C$500,000 and not less than
C$1,000,000.  The face amount of each B/A
shall be C$100,000 or any whole multiple thereof.  If any Lender’s ratable share of the B/As of
any Contract Period to be accepted on any date would not be an integral
multiple of C$100,000, the face amount of the B/As accepted by such Lender may
be increased or reduced to the nearest integral multiple of C$100,000 by the
Administrative Agent in its sole discretion. 
B/As of more than one Contract Period may be outstanding at the same
time, provided that there shall not at any time be more than a total of
five B/A Drawings outstanding (or such greater number as the Administrative
Agent shall agree).

(c) To request an acceptance
and purchase of B/As, the Canadian Subsidiary Borrower shall notify the
Administrative Agent of such request in writing (delivered by hand or
facsimile) in a form approved by the Administrative Agent and signed by the
Canadian Subsidiary Borrower or by telephone not later than 12:00 noon.,
Toronto time, two Business Days before the date of such acceptance and
purchase.  Each such request shall be
irrevocable and, if telephonic, shall be confirmed promptly by hand delivery or
facsimile to the Administrative Agent of a written request in a form approved
by the Administrative Agent and signed by the Canadian Subsidiary
Borrower.  Each such written and
telephonic request shall specify the following information:

(i) the
aggregate face amount of the B/As to be accepted and purchased;

(ii) the date
of such acceptance and purchase, which shall be a Business Day;

(iii) the
Contract Period to be applicable thereto, which shall be a period contemplated
by the definition of the term “Contract Period” (and which shall in no event
end after the Maturity Date); and

(iv) the location
and number of the Canadian Subsidiary Borrower’s account to which any funds are
to be disbursed, which shall comply with the requirements of Section 2.07.

If no Contract Period is
specified with respect to any requested acceptance and purchase of B/As, then
the Canadian Subsidiary Borrower shall be deemed to have selected a Contract
Period of 30 days’ duration. 
Promptly following receipt of a request in accordance with this Section
2.06, the Administrative Agent shall advise each Lender of the details thereof
and the amount of B/As to be accepted and purchased by such Lender.

(d) The Canadian Subsidiary
Borrower hereby appoints each Lender as its attorney to sign and endorse on its
behalf, manually or by facsimile or mechanical signature, as and when deemed
necessary by such Lender, blank forms of B/As. 
It shall be the responsibility of each Lender to maintain an adequate
supply of blank forms of B/As for acceptance under this Agreement.  The Canadian Subsidiary Borrower recognizes
and agrees that all B/As signed and/or endorsed on its behalf by any

 56
 

 

Lender
shall bind the Canadian Subsidiary Borrower as fully and effectually as if
manually signed and duly issued by authorized officers of the Canadian
Subsidiary Borrower.  Each Lender is
hereby authorized to issue such B/As endorsed in blank in such face amounts as
may be determined by such Lender, provided that the aggregate face
amount thereof is equal to the aggregate face amount of B/As required to be
accepted by such Lender.  No Lender shall
be liable for any damage, loss or claim arising by reason of any loss or
improper use of any such instrument unless such loss or improper use results
from the bad faith, gross negligence or wilful misconduct of such Lender.  Each Lender shall maintain a record with
respect to B/As (i) received by it from the Administrative Agent in blank
hereunder, (ii) voided by it for any reason, (iii) accepted and
purchased by it hereunder and (iv) canceled at their respective maturities.  Each Lender further agrees to retain such
records in the manner and for the periods provided in applicable provincial or
Federal statutes and regulations of Canada and to provide such records to the
Canadian Subsidiary Borrower upon its request and at its expense.  Upon request by the Canadian Subsidiary
Borrower, a Lender shall cancel all forms of B/A that have been pre-signed or
pre-endorsed on behalf of the Canadian Subsidiary Borrower and that are held by
such Lender and are not required to be issued pursuant to this Agreement.

(e) Drafts of the Canadian
Subsidiary Borrower to be accepted as B/As hereunder shall be signed as set
forth in paragraph (d) above. 
Notwithstanding that any Person whose signature appears on any B/A may
no longer be an authorized signatory for any of the Lenders or the Canadian
Subsidiary Borrower at the date of issuance of such B/A, such signature shall
nevertheless be valid and sufficient for all purposes as if such authority had
remained in force at the time of such issuance and any such B/A so signed shall
be binding on the Canadian Subsidiary Borrower.

(f) Upon acceptance of a B/A
by a Lender, such Lender shall purchase, or arrange the purchase of, such B/A
from the Canadian Subsidiary Borrower at the Discount B/A Rate for such Lender
applicable to such B/A accepted by it and provide to the Administrative Agent
the Discount Proceeds for the account of the Canadian Subsidiary Borrower as
provided in Section 2.07.  The
Acceptance Fee payable by the Canadian Subsidiary Borrower to a Lender under
Section 2.12(c) in respect of each B/A accepted by such Lender shall be
set off against the Discount Proceeds payable by such Lender under this
paragraph.  Notwithstanding the
foregoing, in the case of any B/A Drawing resulting from the conversion or
continuation of a B/A Drawing or Canadian Revolving Loan pursuant to Section
2.08, the net amount that would otherwise be payable to the Canadian Subsidiary
Borrower by each Lender pursuant to this paragraph will be applied as provided
in Section 2.08(d).

(g) Each Lender may at any
time and from time to time hold, sell, rediscount or otherwise dispose of any
or all B/As accepted and purchased by it, provided that no such sale or disposition shall cause the
amount payable by the Canadian Subsidiary Borrower under Section 2.17 to exceed
the amount that would have been payable thereunder in the absence of such sale
or disposition.

(h) Each B/A accepted and
purchased hereunder shall mature at the end of the Contract Period applicable
thereto.

(i) The Canadian Subsidiary
Borrower waives presentment for payment and any other defense to payment of any
amounts due to a Lender in respect of a B/A accepted and purchased by it
pursuant to this Agreement that might exist solely by reason of such B/A being
held, at the maturity thereof, by such Lender in its own right and the Canadian
Subsidiary Borrower agrees not to claim any days of grace if such Lender as
holder sues the Canadian Subsidiary Borrower on the B/A for payment of the
amounts payable by the Canadian Subsidiary Borrower thereunder.  On the specified maturity date of a B/A, or
such earlier date as may be required pursuant to the provisions of this
Agreement, the Canadian Subsidiary Borrower shall pay the Lender that has
accepted and purchased such B/A the full face amount of such B/A (or shall make
provision for the conversion or continuation of such B/A in accordance with

 57
 

 

Section 2.08)
in Canadian Dollars, and, after such payment, the Canadian Subsidiary Borrower
shall have no further liability in respect of such B/A and such Lender shall be
entitled to all benefits of, and be responsible for all payments due to third
parties under, such B/A.

(j) At the option of the
Canadian Subsidiary Borrower and any Lender, B/As under this Agreement to be
accepted by such Lender may be issued in the form of depository bills for
deposit with The Canadian Depository for Securities Limited pursuant to the
Depository Bills and Notes Act (Canada). 
All depository bills so issued shall be governed by the provisions of
this Section 2.06.

(k) If a Lender is not a
chartered bank under the Bank Act
(Canada) or if a Lender notifies the Administrative Agent in writing that it is
otherwise unable to accept B/As (each such Lender, a “Non-B/A Lender”),
such Lender will, instead of accepting and purchasing B/As, make a Loan (a “B/A
Equivalent Loan”) from its Revolving Lending Office to the Canadian
Subsidiary Borrower in the amount and for the same term as the draft that such
Lender would otherwise have been required to accept and purchase hereunder, provided
that no B/A Equivalent Loan may be made by a Lender that is not a Canadian
Resident unless the applicable Lender has delivered to the Canadian Subsidiary
Borrower a notice pursuant to Section 9.21 in respect of such B/A
Equivalent Loan.  Each such Lender may request
that such B/A Equivalent Loan be evidenced by a non-interest bearing promissory
note, in a form approved by the Parent Borrower and the Administrative
Agent.  Each such Lender will provide to
the Administrative Agent the Discount Proceeds of such B/A Equivalent Loan for
the account of the Canadian Subsidiary Borrower in the same manner as such
Lender would have provided the Discount Proceeds in respect of the draft that
such Lender would otherwise have been required to accept and purchase
hereunder.  Each such B/A Equivalent Loan
will bear interest at the same rate that would result if such Lender had
accepted (and been paid an Acceptance Fee) and purchased (on a discounted
basis) a B/A for the relevant Contract Period (it being the intention of the parties
that each such B/A Equivalent Loan shall have the same economic consequences
for the Lenders and the Canadian Subsidiary Borrower as the B/A that such B/A
Equivalent Loan replaces).  All such
interest shall be paid in advance on the date such B/A Equivalent Loan is made
and will be deducted from the principal amount of such B/A Equivalent Loan in
the same manner in which the Discount Proceeds of a B/A would be deducted from
the face amount of the B/A.  Subject to
the repayment requirements of this Agreement, on the last day of the relevant
Contract Period for such B/A Equivalent Loan, the Canadian Subsidiary Borrower
shall be entitled to convert each such B/A Equivalent Loan into another type of
Loan, or to roll over each such B/A Equivalent Loan into another B/A Equivalent
Loan, all in accordance with the applicable provisions of this Agreement.

(l) If the Administrative
Agent determines and promptly notifies the Parent Borrower that, by reason of
circumstances affecting the money market, there is no market for B/As,
(i) the right of the Canadian Subsidiary Borrower to request an acceptance
and purchase of B/As shall be suspended until the Administrative Agent
determines that the circumstances causing such suspension no longer exist and
so notifies the Parent Borrower, and (ii) any notice relating to an acceptance
and purchase of B/As that is outstanding at such time shall be deemed to be a
notice requesting a Canadian Base Rate Revolving Borrowing (as if it were a
notice given pursuant to Section 2.03).

SECTION 2.07.  Funding of
Borrowings.  (a)  Each Lender shall make each Loan to be made
by it and disburse the Discount Proceeds (net of applicable Acceptance Fees) of
each B/A to be accepted and purchased by it hereunder on the proposed date
thereof by wire transfer of immediately available funds by 1:00 p.m., Local
Time, to the account of the Administrative Agent most recently designated by it
for such purpose by notice to the Lenders, provided that Swingline Loans
shall be made as provided in Section 2.04. 
The Administrative Agent will make such Loans or Discount Proceeds (net
of applicable Acceptance Fees) available to the applicable Borrower by promptly
crediting the amounts so received, in like funds, to the such Borrower’s
Funding Account, provided that ABR Revolving Loans,

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U.S. Base Rate
Revolving Loans, Canadian Base Rate Revolving Loans and Swingline Loans made to
finance the reimbursement of an L/C Disbursement and reimbursements as provided
in Section 2.05(e) shall be remitted by the Administrative Agent to the Issuing
Bank or, to the extent that the Lenders have made payments to the Issuing Bank
pursuant to Section 2.05(e) to reimburse the Issuing Bank, then to such
Lenders and the Issuing Bank as their interests may appear.

(b)  Unless the Administrative
Agent shall have received notice from a Lender prior to the proposed date of
any Borrowing or acceptance and purchase of B/As that such Lender will not make
available to the Administrative Agent such Lender’s share of such Borrowing or
the applicable Discount Proceeds (net of the applicable Acceptance Fees), the
Administrative Agent may assume that such Lender has made such share available
on such date in accordance with paragraph (a) of this Section 2.07 and may, in
reliance upon such assumption, make available to the applicable Borrower a
corresponding amount.  In such event, if
a Lender has not in fact made its share of such Borrowing or Discount Proceeds
(net of the applicable Acceptance Fees) available to the Administrative Agent,
then the applicable Lender and the applicable Borrower severally agree to pay
to the Administrative Agent forthwith on demand such corresponding amount with
interest thereon, for each day from and including the date such amount is made
available to the applicable Borrower to but excluding the date of payment to
the Administrative Agent, at (i) in the case of such Lender, the greater of
(A)(1) if such amount corresponds to a Borrowing made by the Parent Borrower,
the Federal Funds Effective Rate, or (2) if such amount corresponds to a
Borrowing made by the Canadian Subsidiary Borrower, the rate reasonably
determined by the Administrative Agent to be the cost to it of funding such
amount, and (B) a rate determined by the Administrative Agent in accordance
with banking industry rules on interbank compensation, (ii) in the case of the
Parent Borrower, the interest rate applicable to ABR Revolving Loans, or (iii)
in the case of the Canadian Subsidiary Borrower, (A) if such amount corresponds
to a Borrowing made in U.S. Dollars, the interest rate applicable to U.S. Base
Rate Revolving Loans, and (B) if such amount corresponds to a B/A Drawing or a
Borrowing made in Canadian Dollars, the interest rate applicable to Canadian
Base Rate Revolving Loans.  If such
Lender pays such amount to the Administrative Agent, then such amount shall
constitute such Lender’s Loan included in such Borrowing or such Lender’s
acceptance and purchase of B/As.

SECTION 2.08.  Interest
Elections.  (a)  Each Revolving Borrowing initially shall be
of the Type specified in the applicable Borrowing Request and, in the case of a
Eurodollar Revolving Borrowing, shall have an initial Interest Period as
specified in such Borrowing Request. 
Each B/A Drawing shall have a Contract Period as specified in the applicable
request therefor.  Thereafter, the
Borrower may elect to convert such Revolving Borrowing or B/A Drawing to a
different Type or to continue such Revolving Borrowing or B/A Drawing and, in
the case of a Eurodollar Revolving Borrowing, may elect Interest Periods
therefor, all as provided in this Section 2.08, it being understood that no B/A
Drawing may be converted or continued other than at the end of the Contract
Period applicable thereto.  The
applicable Borrower may elect different options with respect to different
portions of the affected Revolving Borrowing or B/A Drawing, in which case each
such portion shall be allocated ratably among the Lenders holding the Loans
comprising such Revolving Borrowing or accepting B/As comprising such B/A
Drawing, as the case may be, and the Loans or B/As resulting from an election
made with respect to any such portion shall be considered a separate Revolving
Borrowing or B/A Drawing.  This Section
2.08 shall not apply to Swingline Borrowings, which may not be converted or
continued.

(b)  To make an election pursuant
to this Section 2.08, the applicable Borrower shall notify the Administrative
Agent of such election by telephone (i) in the case of an election that would
result in a Revolving Borrowing, by the time that a Borrowing Request would be
required under Section 2.03 if such Borrower were requesting a Revolving
Borrowing of the Type resulting from such election to be made on the effective
date of such election, and (ii) in the case of an election that would result in
a B/A

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Drawing or the
continuation of a B/A Drawing, by the time that a request would be required
under Section 2.06 if such Borrower were requesting an acceptance and purchase
of B/As to be made on the effective date of such election.  Each such telephonic Interest Election
Request shall be irrevocable and shall be confirmed promptly by hand delivery
or facsimile to the Administrative Agent of a written Interest Election Request
in a form approved by the Administrative Agent and signed by the applicable
Borrower.  Notwithstanding any other
provision of this Section 2.08, no Borrower shall be permitted to (i) change
the currency of any Revolving Borrowing, (ii) elect an Interest Period for
Eurodollar Revolving Loans that does not comply with Section 2.02(d) or a
Contract Period for B/As that does not comply with Section 2.06(c)(iii) or
(iii) convert any Revolving Borrowing or B/A Drawing to a Revolving Borrowing
or B/A Drawing not available under the Tranche of Commitments pursuant to which
such Revolving Borrowing or B/A Drawing was made.  Each such written and telephonic Interest
Election Request shall specify the following information:

(i) the
Revolving Borrowing or B/A Drawing to which such Interest Election Request
applies and, if different options are being elected with respect to different
portions thereof, the portions thereof to be allocated to each resulting
Revolving Borrowing or B/A Drawing (in which case the information to be
specified pursuant to clauses (iii), (iv) and (v) below shall be specified for
each resulting Revolving Borrowing or B/A Drawing);

(ii) the
effective date of the election made pursuant to such Interest Election Request,
which shall be a Business Day;

(iii) whether
the resulting outstanding credit extension is to be an ABR Revolving Borrowing,
U.S. Base Rate Revolving Borrowing, Canadian Base Rate Revolving Borrowing,
Eurodollar Revolving Borrowing or B/A Drawing;

(iv) if the
resulting Revolving Borrowing is a Eurodollar Revolving Borrowing, the Interest
Period to be applicable thereto after giving effect to such election, which
shall be a period contemplated by the definition of the term “Interest Period”;
and

(v) in the
case of an election of a B/A Drawing, the Contract Period to be applicable
thereto, which shall be a period contemplated by the definition of the term
Contract Period.

If any such Interest
Election Request requests a Eurodollar Revolving Borrowing or B/A Drawing but
does not specify an Interest Period or Contract Period, then the applicable
Borrower shall be deemed to have selected an Interest Period or Contract Period
of one month’s or 30 days’ duration, as applicable.  Promptly following receipt of an Interest
Election Request, the Administrative Agent shall advise each Lender of the
details thereof and of such Lender’s portion of each resulting Revolving
Borrowing or B/A Drawing.

(c)  If a Borrower fails to
deliver a timely Interest Election Request with respect to a Eurodollar
Revolving Borrowing or a B/A Drawing prior to the end of the Interest Period or
Contract Period applicable thereto, then, unless such Revolving Borrowing or
B/A is repaid as provided herein, at the end of such Interest Period such
Revolving Borrowing or B/A Drawing shall (i) in the case of a Eurodollar U.S.
Revolving Borrowing, be converted to an ABR Revolving Borrowing, (ii) in the
case of a Eurodollar Canadian Revolving Borrowing, be converted to a U.S. Base
Rate Revolving Borrowing, and (iii) in the case of a B/A Drawing, be converted
to a Canadian Base Rate Revolving Borrowing.  Notwithstanding any contrary provision hereof,
if an Event of Default has occurred and is continuing and the Administrative
Agent, at the request of the Required Lenders, so notifies the Parent Borrower,
then, so

 60
 

 

long as an
Event of Default is continuing, (i) no outstanding Revolving Borrowing may be
converted to or continued as a Eurodollar Revolving Borrowing or a B/A Drawing
and no B/A Drawing outstanding may be continued as a B/A Drawing, (ii) unless
repaid, each Eurodollar Revolving Borrowing shall (A) in the case of a
Eurodollar U.S. Revolving Borrowing, be converted to an ABR Revolving Borrowing
at the end of the Interest Period applicable thereto, and (B) in the case of
such a Eurodollar Canadian Revolving Borrowing, be converted to a U.S. Base Rate
Revolving Borrowing at the end of the Interest Period applicable thereto and
(iii) unless repaid, each B/A Drawing shall be converted to a Canadian Base
Rate Revolving Borrowing.

(d)  Upon the conversion of any
Canadian Revolving Borrowing (or portion thereof) to, or the continuation of
any B/A Drawing (or portion thereof) as, a B/A Drawing, the net amount that
would otherwise be payable to the Canadian Subsidiary Borrower by each Lender
pursuant to Section 2.06(f) in respect of such new B/A Drawing shall be applied
against the principal of the Canadian Revolving Loans made by each Lender as
part of such Canadian Revolving Borrowing (in the case of a conversion) or the
reimbursement obligation owed to such Lender under Section 2.06(i) in respect
of the B/As accepted by such Lender as part of such maturing B/A Drawing (in
the case of a continuation) and the Canadian Subsidiary Borrower shall pay to
such Lender an amount equal to the difference between the principal amount of
such Canadian Revolving Loans or the aggregate face amount of such maturing
B/As, as the case may be, and such net amount.

SECTION 2.09.  Termination and
Reduction of Commitments.  (a)  Unless previously terminated, all Commitments
shall terminate on the Maturity Date.

(b)  The Borrowers may at any
time terminate, or from time to time reduce, the Commitments of any Tranche, provided
that (i) each partial reduction of the Commitments of any Tranche shall be in
an amount that is an integral multiple of $1,000,000 and not less than
$2,000,000, (ii) the Borrowers shall not terminate or reduce the Revolving
Commitments if, after giving effect to any concurrent prepayment of the
Revolving Loans in accordance with Section 2.11, the aggregate Revolving
Exposure would exceed the lesser of (A) the aggregate Revolving Commitments and
(B) an amount equal to (x) the Total Borrowing Base then in effect minus
(y) the Availability Block, (iii) the Borrowers shall not terminate or reduce
the Revolving Commitments if, after giving effect to any concurrent prepayment
of the U.S. Revolving Loans in accordance with Section 2.11, the U.S. Revolving
Exposure would exceed the Domestic Borrowing Base then in effect, (iv) the
Borrowers shall not terminate or reduce the Canadian Revolving Sub-Commitments
if, after giving effect to any concurrent prepayment of the Canadian Revolving
Loans in accordance with Section 2.11, the Canadian Revolving Exposure would
exceed the lesser of (A) the aggregate Canadian Revolving Sub-Commitments and
(B) the Canadian Borrowing Base then in effect and (v) the Borrowers shall not
terminate or reduce the Revolving Commitments if, after giving effect to such
termination or reduction, the aggregate Canadian Revolving Sub-Commitments
would exceed the aggregate Revolving Commitments.

(c) The applicable Borrower shall notify the Administrative Agent of
any election to terminate or reduce the Revolving Commitments or Canadian
Revolving Sub-Commitments under paragraph (b) of this Section 2.09 at
least three Business Days prior to the effective date of such termination or
reduction, specifying such election and the effective date thereof.  Promptly following receipt of any notice, the
Administrative Agent shall advise the Lenders of the contents thereof.  Each notice delivered by a Borrower pursuant to
this Section 2.09 shall be irrevocable, provided that a notice of
termination of the Revolving Commitments or the Canadian Revolving
Sub-Commitments delivered by a Borrower may state that such notice is
conditioned upon consummation of an acquisition or sale transaction or upon the
effectiveness of other credit facilities or the receipt of proceeds from the
issuance of other Indebtedness, in which case such notice may be revoked by
such Borrower (by notice to the Administrative Agent on or prior to the specified
effective date) if such condition is not satisfied.  Any

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termination
or reduction of the Commitments of any Tranche shall be permanent.  Each reduction of the Commitments of any
Tranche shall be made ratably among the Lenders in accordance with their
respective Commitments of such Tranche.

SECTION 2.10.  Repayment of
Loans and B/As; Evidence of Debt. 
(a)  Each Borrower hereby
unconditionally promises to pay (i) to the Administrative Agent for the account
of each Lender the then unpaid principal amount of each Revolving Loan of such
Lender made to such Borrower on the Maturity Date and the face amount of each
B/A of such Borrower, if any, accepted by such Lender as provided in Section
2.06, and (ii) to the Swingline Lender the then unpaid principal amount of each
Swingline Loan on the earlier of the Maturity Date and the first date after
such Swingline Loan is made that is the 15th or last day of a calendar month
and is at least two Business Days after such Swingline Loan is made, provided
that on each date that a U.S. Revolving Loan is made, the Parent Borrower shall
repay all Swingline Loans then outstanding.

(b)  At all times that full cash
dominion is in effect pursuant to Section 3.06 of the Domestic Security
Agreement and the Canadian Security Agreement (or the applicable provisions, if
any, of the other Collateral Documents), on each Business Day, at or before
12:00 noon, Local Time, the Administrative Agent shall apply all immediately
available funds to prepay first, the Revolving Loans (including Swingline
Loans) and amounts owing in respect of B/A Drawings and second, subject to
Section 2.05(j), to cash collateralize outstanding Total L/C Exposure, provided
that such prepayments shall be applied in a manner that minimizes payments due
pursuant to Section 2.16.

(c)  Each Lender shall maintain
in accordance with its usual practice an account or accounts evidencing the
Indebtedness of each Borrower to such Lender resulting from each Loan made or
B/A accepted by such Lender, including the amounts of principal and interest
and amounts in respect of B/As payable and paid to such Lender from time to
time hereunder.

(d)  The Administrative Agent
shall maintain accounts in which it shall record (i) the amount of each Loan
made hereunder, the currency thereof, the Tranche and Type thereof and the
Interest Period (if any) applicable thereto, (ii) the amount of each B/A and
the Contract Period applicable thereto, (iii) the amount of any principal,
interest due or other amount due and payable or to become due and payable from
each Borrower to each Lender hereunder and (iv) the amount of any sum received
by the Administrative Agent hereunder for the account of the Lenders and each
Lender’s share thereof.

(e)  The entries made in the
accounts maintained pursuant to paragraph (c) or (d) of this Section 2.10 shall
be, absent manifest error, 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 any Borrower
to repay the Loans or amounts owing in respect of B/A Drawings in accordance
with the terms of this Agreement.

(f)  Any Lender may request that
Loans of any Tranche made by it be evidenced by a promissory note.  In such event, the applicable Borrower shall
prepare, execute and deliver to such Lender a promissory note payable to the
order of such Lender (or, if requested by such Lender, to such Lender and its
registered assigns) and in a form approved by the Administrative Agent unless the
applicable Borrower shall have already delivered a note representing such
Loans, in which case the applicable Borrower shall have the right to have such
note returned to it prior to delivering a new note.  Thereafter, the Loans evidenced by such
promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 9.04) be represented by one or more
promissory notes in such form payable to the order of the payee named therein
(or, if such promissory note is a registered note, to such payee and its
registered assigns).

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SECTION 2.11.  Prepayments.  (a) 
Each Borrower shall have the right at any time and from time to time to
prepay any Borrowing or amount owed in respect of outstanding B/As, in whole or
in part, without premium or penalty (but subject to Section 2.16), subject to
the requirements of this Section 2.11.

(b)  In the event and on such
occasion that (i) the aggregate Revolving Exposure exceeds the lesser of (A)
the aggregate Revolving Commitments and (B) an amount equal to (x) the Total
Borrowing Base then in effect minus (y) the Availability Block, (ii) the
U.S. Revolving Exposure exceeds the Domestic Borrowing Base then in effect or
(iii) the Canadian Revolving Exposure exceeds the lesser of (A) the aggregate
Canadian Revolving Sub-Commitments or (B) the Canadian Borrowing Base then in
effect, the applicable Borrower shall prepay the applicable Borrowings or
amounts owing in respect of outstanding B/A Drawings (or, if no such Borrowings
or B/A Drawings are outstanding, deposit cash collateral in the applicable L/C
Collateral Account pursuant to Section 2.05(j)) in an aggregate amount equal to
such excess within one Business Day after the day of such event or
occasion.  In addition, the Borrowers
shall make (1) any prepayments required by Section 5.12 and (2) any prepayments
required by the Senior Secured Notes Indenture as a condition to making an
Excess Cash Flow Offer (as defined in the Senior Secured Notes Indenture).

(c)  Prior to any optional or
mandatory prepayment of Borrowings or amounts owing in respect of outstanding
B/A Drawings, the applicable Borrower shall select the Borrowing or Borrowings
or the B/A Drawing or B/A Drawings to be prepaid and shall specify such
selection in the notice of such prepayment pursuant to paragraph (d) of this
Section 2.11.

(d)  The applicable Borrower
shall notify the Administrative Agent (and, in the case of prepayment of a
Swingline Loan, the Swingline Lender) by telephone (confirmed by facsimile) of
any prepayment hereunder (i) in the case of prepayment of a Eurodollar
Revolving Borrowing, not later than 12:00 noon, Local Time, three Business Days
before the date of prepayment, (ii) in the case of prepayment of any ABR
Revolving Borrowing, U.S. Base Rate Revolving Borrowing, Canadian Base Rate
Revolving Borrowing or B/A Drawing, not later than 12:00 noon, Local Time, one
Business Day before the date of prepayment or (iii) in the case of
prepayment of a Swingline Loan, not later than 1:00 p.m., New York City
time, on the date of prepayment.  Each
such telephonic notice shall be irrevocable and shall specify the prepayment
date, the principal amount of each Borrowing or portion thereof, or amount owed
in respect of an outstanding B/A Drawing or portion thereof, to be prepaid and,
in the case of a mandatory prepayment, a reasonably detailed calculation of the
amount of such prepayment, provided that if a notice of prepayment is
given in connection with a conditional notice of termination of the Revolving
Commitments or Canadian Revolving Sub-Commitments as contemplated by
Section 2.09, then such notice of prepayment may be revoked if such notice
of termination is revoked in accordance with Section 2.09.  In addition, a notice of optional prepayment
may state that such notice is conditional upon the consummation of an
acquisition or asset sale or upon the effectiveness of other credit facilities
or the receipt of proceeds from the issuance of other Indebtedness, in which
case such notice may be revoked if the applicable contingency has not
occurred.  Promptly following receipt of
any such notice, the Administrative Agent shall advise the Lenders of the
contents thereof.   Each partial
prepayment of any Borrowing or amounts owing in respect of an outstanding B/A
Drawing shall be in an amount that would be permitted in the case of an advance
of a Borrowing of the same Type as provided in Section 2.02 or an acceptance
and purchase of B/As as provided in Section 2.06, except as necessary to apply
fully the required amount of a mandatory prepayment.  Each prepayment of a Borrowing or amounts
owing in respect of an outstanding B/A Drawing shall be applied ratably to the
Loans included in such prepaid Borrowing or the B/As included in such B/A
Drawing.  Prepayments shall be
accompanied by accrued interest to the extent required by Section 2.12.

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(e)  Amounts to be applied
pursuant to this Section 2.11 or Article VII to prepay or repay amounts to
become due with respect to outstanding B/As shall be deposited in the
Prepayment Account.  On the last day of
the Contract Period of each B/A to be prepaid or repaid, the Administrative
Agent shall apply any cash on deposit in the Prepayment Account to amounts due
in respect of the relevant B/As until the aggregate face amount due in respect
of the relevant outstanding B/As has been reimbursed (with any remaining funds
being returned to the Canadian Subsidiary Borrower) or until all the allocable
cash on deposit has been exhausted.  The
Administrative Agent will, at the request of the Canadian Subsidiary Borrower,
use commercially reasonable efforts to invest amounts on deposit in the
Prepayment Account in short-term, cash equivalent investments selected by the
Administrative Agent in consultation with the Canadian Subsidiary Borrower that
mature prior to the last day of the applicable Contract Periods of the B/As to
be prepaid, provided that the Administrative Agent shall have no
obligation to invest amounts on deposit in the Prepayment Account if an Event
of Default shall have occurred and be continuing.  The Canadian Subsidiary Borrower shall
indemnify the Administrative Agent for any losses relating to the investments
made at the request or direction of the Canadian Subsidiary Borrower so that
the amount available to prepay amounts due in respect of B/As on the last day
of the applicable Contract Period is not less than the amount that would have
been available had no investments been made pursuant thereto.  Other than any interest earned on such
investments (which shall be for the account of the Canadian Subsidiary
Borrower, to the extent not necessary for the prepayment of B/As in accordance
with this Section 2.11), the Prepayment Account shall not bear interest.  Interest or profits, if any, on such
investments shall be deposited in the Prepayment Account and reinvested and
disbursed as specified above.  If the
maturity of the Loans and all amounts due hereunder has been accelerated
pursuant to Article VII, the Administrative Agent may, in its sole discretion,
apply all amounts on deposit in the Prepayment Account to satisfy the Canadian
Obligations (and the Canadian Subsidiary Borrower hereby grants to the
Administrative Agent a security interest in the Prepayment Account to secure
such Canadian Obligations).

SECTION 2.12.  Fees.  (a) 
The Parent Borrower agrees to pay to the Administrative Agent for the
account of each Lender a commitment fee (a “Commitment Fee”), which
shall accrue at the Applicable Rate on the average daily unused amount of the
Revolving Commitment of such Lender during the period from and including the
Effective Date to but excluding the date on which such Lender’s Revolving
Commitment terminates.  Commitment Fees
accrued through and including the last day of each March, June, September and
December shall be payable on the third Business Day following such last day,
commencing on the first such date to occur after the date hereof, provided
that all such accrued Commitment Fees shall be payable on the date on which the
Commitments terminate.  All Commitment
Fees shall be computed on the basis of a year of 360 days and shall be payable
for the actual number of days elapsed (including the first day but excluding
the last day).  For purposes of computing
Commitment Fees, a Revolving Commitment of a Lender shall be deemed to be used
to the extent of the outstanding Revolving Loans and Total L/C Exposure of such
Lender (and the Total Swingline Exposure of such Lender shall be disregarded
for such purpose).

(b)  The Parent Borrower agrees
to pay (i) to the Administrative Agent for the account of each Lender a
participation fee (a “Participation Fee”) with respect to its
participations in Letters of Credit, which shall accrue at the same Applicable
Rate used to determine the interest rate applicable to Eurodollar Revolving
Loans on the average daily amount of such Lender’s Total L/C Exposure
(excluding any portion thereof attributable to unreimbursed L/C Disbursements)
during the period from and including the Effective Date to but excluding the
later of the date on which such Lender’s Revolving Commitments terminate and
the date on which such Lender ceases to have any Total L/C Exposure, and (ii)
to the Issuing Bank a fronting fee (a “Fronting Fee”), which shall
accrue at the rate of 0.25% per annum on the average daily amount of the Total
L/C Exposure (excluding any portion thereof attributable to unreimbursed L/C
Disbursements) during the period from and including the Effective Date to but
excluding the later of the date of termination of the Revolving Commitments and
the date on which there

 64
 

 

ceases to be
any Total L/C Exposure, as well as the Issuing Bank’s standard fees with
respect to the issuance, amendment, renewal or extension of any Letter of
Credit or processing of drawings thereunder. 
Participation Fees and Fronting Fees accrued through and including the
last day of each March, June, September and December shall be payable on the
third Business Day following such last day, commencing on the first such date
to occur after the Effective Date, provided that all such accrued fees
shall be payable on the date on which the Revolving Commitments terminate and
any such fees accruing after the date on which the Commitments terminate shall
be payable on demand.  Any other fees
payable to the Issuing Bank pursuant to this paragraph shall be payable within
10 Business Days after written demand. 
All Participation Fees and Fronting Fees shall be computed on the basis
of a year of 360 days and shall be payable for the actual number of days
elapsed (including the first day but excluding the last day).

(c)  The Canadian Subsidiary
Borrower agrees to pay to the Administrative Agent, for the account of each
Lender, on each date on which B/As drawn by the Canadian Subsidiary Borrower
are accepted hereunder, in Canadian Dollars, an acceptance fee (an “Acceptance
Fee”) computed by multiplying the face amount of each such B/A by the
product of (i) the Applicable Rate for B/A Drawings on such date and (ii) a
fraction, the numerator of which is the number of days in the Contract Period
applicable to such B/A and the denominator of which is 365.

(d)  Each Borrower agrees to pay
to the Administrative Agent, for its own account, fees payable in the amounts
and at the times separately agreed upon between the Parent Borrower and the
Administrative Agent.

(e)  All fees payable hereunder
shall be paid on the dates due, in immediately available funds, to the
Administrative Agent (or to the Issuing Bank, in the case of fees payable to
it) for distribution, in the case of Commitment Fees, Participation Fees and
Acceptance Fees, to the Lenders entitled thereto.  Fees paid (other than any portion of such
fees that represent overpayments) shall not be refundable under any
circumstances.

SECTION 2.13.  Interest.  (a) 
(i) The Loans comprising each ABR Revolving Borrowing (including each
Swingline Loan made to the Parent Borrower) shall bear interest at the
Alternate Base Rate plus the Applicable Rate, (ii) the Loans comprising
each U.S. Base Rate Revolving Borrowing (including each Swingline Loan made to
the Canadian Subsidiary Borrower that is denominated in U.S. Dollars) shall
bear interest at the U.S. Base Rate plus the Applicable Rate and (iii)
the Loans comprising each Canadian Base Rate Revolving Borrowing (including
each Swingline Loan made to the Canadian Subsidiary Borrower that is
denominated in Canadian Dollars) shall bear interest at the Canadian Base Rate plus
the Applicable Rate.

(b)  The Loans comprising each
Eurodollar Revolving Borrowing shall bear interest at the Adjusted LIBO Rate
for the Interest Period in effect for such Borrowing plus the Applicable
Rate.

(c)  Notwithstanding the
foregoing, if any principal of or interest on any Loan or any fee or other
amount payable by any Borrower hereunder is not paid when due, whether at
stated maturity, upon acceleration or otherwise, such overdue amount shall bear
interest, after as well as before judgment, at a rate per annum equal to (i) in
the case of overdue principal of any Loan, 2.00% plus the rate otherwise
applicable to such Loan as provided in the preceding paragraphs of this Section
2.13 or (ii) in the case of any other amount, 2.00% plus the rate
applicable to (A) in the case of an amount owed by the Parent Borrower, an ABR
Loan, (B) in the case of an amount owed by the Canadian Subsidiary Borrower and
denominated in U.S. Dollars, a U.S. Base Rate Loan or (C) in the case of an
amount owed by the Canadian Subsidiary Borrower and denominated in Canadian
Dollars, a Canadian Base Rate Loan.

 65
 

 

(d)  Accrued interest on each
Loan shall be payable in arrears on each Interest Payment Date for such Loan
and, in the case of Loans in respect of any Tranche, upon termination of the
Commitments in respect of such Tranche, provided that (i) interest
accrued pursuant to paragraph (c) of this Section 2.13 shall be payable on
demand, (ii) in the event of any repayment or prepayment of any Loan (other
than a prepayment of an ABR Revolving Borrowing, U.S. Base Rate Revolving
Borrowing or Canadian Base Rate Revolving Borrowing prior to the end of the
Availability Period), accrued interest on the principal amount repaid or
prepaid shall be payable on the date of such repayment or prepayment, and (iii)
in the event of any conversion of any Eurodollar Loan prior to the end of the
current Interest Period therefor, accrued interest on such Loan shall be
payable on the effective date of such conversion.

(e)  All interest hereunder shall
be computed on the basis of a year of 360 days, except that interest computed
by reference to (i) the Alternate Base Rate at times when the Alternate Base
Rate is based on the Prime Rate and (ii) the U.S. Base Rate or the Canadian
Base Rate shall be, in each case, computed on the basis of a year of 365 days
(or 366 days in a leap year) and, in each case, shall be payable for the actual
number of days elapsed (including the first day but excluding the last
day).  The applicable Alternate Base
Rate, U.S. Base Rate, Canadian Base Rate and Adjusted LIBO Rate shall be
determined by the Administrative Agent and such determination shall be
conclusive absent manifest error.

(f) Solely for purposes of
the Interest Act (Canada), (i) whenever any interest or fee under this
Agreement is calculated using a rate based on a year of 360 days or 365 days,
as the case may be, the rate determined pursuant to such calculation, when
expressed as an annual rate, is equivalent to the applicable rate based on a
year of 360 days or 365 days, as the case may be, multiplied by a
fraction, the numerator of which is the actual number of days in the calendar
year in which the period for which such interest or fee is payable (or
compounded) ends and the denominator of which is 360 or 365, as the case may
be, (ii) the rates of interest under this Agreement are nominal rates and not
effective rates or yields and (iii) the principle of deemed reinvestment of
interest does not apply to any interest calculation under this Agreement.

SECTION 2.14.  Alternate Rate
of Interest.  If prior to the
commencement of any Interest Period for a Eurodollar Revolving Borrowing:

(a) the
Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for
ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such
Interest Period; or

(b) the
Administrative Agent is advised by the Required Lenders that the Adjusted LIBO
Rate or the LIBO Rate, as applicable, for such Interest Period will not
adequately and fairly reflect the cost to such Lenders (or Lender) of making or
maintaining their Loans (or its Loan) included in such Borrowing for such
Interest Period;

then the Administrative
Agent shall give notice thereof to the applicable Borrower and the Lenders by
telephone or facsimile as promptly as practicable thereafter and, until the
Administrative Agent notifies the applicable Borrower and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurodollar Revolving Borrowing shall be
ineffective, and (ii) if any Borrowing Request requests a Eurodollar Revolving
Borrowing, such Borrowing shall be made as (A) in the case of a Borrowing
Request made by the Parent Borrower, an ABR Revolving Borrowing, and (B) in the
case of a Borrowing Request made by the Canadian Subsidiary Borrower
denominated in U.S. Dollars, a U.S. Base Rate Revolving Borrowing.

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SECTION 2.15. 
Increased Costs.  (a)  If any Change in Law shall:

(i) impose,
modify or deem applicable any reserve, special deposit or similar requirement
against assets of, deposits with or for the account of, or credit extended by,
any Lender (except any such reserve requirement reflected in the Adjusted LIBO
Rate) or the Issuing Bank, or

(ii) impose on
any Lender or the Issuing Bank or the London interbank market any other
condition affecting this Agreement or Eurodollar Revolving Loans or B/A
Drawings 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 Loan or obtaining funds for the purchase of B/As (or of
maintaining its obligation to make any such Loan or to accept and purchase
B/As) or to increase the cost to such Lender or the Issuing Bank of participating
in, issuing or maintaining any Letter of Credit or to reduce the amount of any
sum received or receivable by such Lender or the Issuing Bank hereunder
(whether of principal, interest or otherwise), then the applicable Borrower
will pay to such Lender or the Issuing Bank, as the case may be, such
additional amount or amounts as will compensate such Lender or the Issuing
Bank, as the case may be, for such additional costs incurred or reduction
suffered.

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

(c)  A
certificate of a Lender or the Issuing Bank setting forth the amount or amounts
necessary to compensate such Lender or the Issuing Bank or its holding company
in reasonable detail, as the case may be, as specified in paragraph (a) or
(b) of this Section 2.15, shall be delivered to the applicable Borrower and
shall be conclusive absent manifest error. 
The applicable Borrower shall pay such Lender or the Issuing Bank, as
the case may be, the amount shown as due on any such certificate within
10 days after receipt thereof.

(d) 
Failure or delay on the part of any Lender or the Issuing Bank to demand
compensation pursuant to this Section 2.15 shall not constitute a waiver of
such Lender’s or the Issuing Bank’s right to demand such compensation, provided
that no Borrower shall be required to compensate a Lender or the Issuing Bank
pursuant to this Section 2.15 for any increased costs or reductions incurred
more than 180 days prior to the date that such Lender or the Issuing Bank, as
the case may be, notifies such Borrower of the Change in Law giving rise to
such increased costs or reductions and of such Lender’s or the Issuing Bank’s
intention to claim compensation therefor; provided  further that
if the Change in Law giving rise to such increased costs or reductions is
retroactive, then the 180-day period referred to above shall be extended to
include the period of retroactive effect thereof.

SECTION 2.16. 
Break Funding Payments.  In
the event of (a) the payment of any principal of any Eurodollar Loan other than
on the last day of an Interest Period applicable thereto

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(including as a result of an Event of Default), (b) the conversion of
any Eurodollar Loan other than on the last day of the Interest Period
applicable thereto, (c) the failure to borrow, convert, continue or prepay any
Eurodollar Loan or to issue B/As for acceptance and purchase on the date
specified in any notice delivered pursuant hereto (regardless of whether such
notice may be revoked under Section 2.11(d) and is revoked in accordance
therewith), or (d) the assignment of any Eurodollar Loan or right to
receive payment in respect of a B/A other than on the last day of the Interest
Period or Contract Period applicable thereto as a result of a request by the
applicable Borrower pursuant to Section 2.19, then, in any such event, the
applicable Borrower shall compensate each Lender for the loss, cost and expense
attributable to such event.  In the case
of a Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed
to include an amount determined by such Lender to be the excess, if any, of (i)
the amount of interest which would have accrued on the principal amount of such
Loan had such event not occurred, at the Adjusted LIBO Rate that would have
been applicable to such Loan, for the period from the date of such event to the
last day of the then current Interest Period therefor (or, in the case of a
failure to borrow, convert or continue, for the period that would have been the
Interest Period for such Loan), over (ii) the amount of interest which would
accrue on such principal amount for such period at the interest rate which such
Lender would bid were it to bid, at the commencement of such period, for dollar
deposits of a comparable amount and period from other banks in the Eurodollar
market.  A certificate of any Lender
setting forth any amount or amounts that such Lender is entitled to receive
pursuant to this Section 2.16 shall be delivered to the applicable Borrower and
shall be conclusive absent manifest error. 
The applicable Borrower shall pay such Lender the amount shown as due on
any such certificate within 10 Business Days after receipt thereof.

SECTION 2.17.  Taxes.  (a) 
Any and all payments by or on account of any obligation of any Loan
Party under any Loan Document shall be made free and clear of and without
deduction for any Indemnified Taxes or Other Taxes, provided that if any
Loan Party shall be required to deduct any Indemnified Taxes, Other Taxes or
Excluded Taxes from such payments, then (i) in the case of Indemnified Taxes
and Other Taxes, the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to
additional sums payable under this Section 2.17) the Administrative Agent, Issuing
Bank or Lender (as the case may be) receives an amount equal to the sum it
would have received had no such deductions been made, (ii) such Loan Party
shall make such deductions and (iii) such Loan Party shall pay the full
amount deducted to the relevant Governmental Authority in accordance with and
within the time required by applicable law.

(b)  In addition, the Loan
Parties shall timely pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.

(c)  Each Loan Party shall indemnify
the Administrative Agent, the Issuing Bank and each Lender, within 10 days
after written demand therefor, for the full amount of any Indemnified Taxes or
Other Taxes paid by the Administrative Agent, the Issuing Bank or such Lender,
as the case may be, on or with respect to any payment by or on account of any
obligation of such Loan Party under any Loan Document (including Indemnified
Taxes or Other Taxes imposed or asserted on or attributable to amounts payable
under this Section 2.17) and any penalties, interest and reasonable expenses
arising therefrom or with respect thereto, whether or not such Indemnified
Taxes or Other Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority.  A
certificate as to the amount of such payment or liability delivered to the
applicable Loan Party by the Issuing Bank or a Lender, or by the Administrative
Agent on its own behalf or on behalf of a Lender or the Issuing Bank, shall be
conclusive absent manifest error.

(d)  As soon as practicable after
any payment of Indemnified Taxes, Other Taxes or Excluded Taxes by the
applicable Loan Party to a Governmental Authority, such Loan Party shall
deliver to the Administrative Agent the original or a certified copy of a
receipt issued by such Governmental

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Authority
evidencing such payment, a copy of the return reporting such payment or other
evidence of such payment reasonably satisfactory to the Administrative Agent.

(e)  The Administrative Agent,
the Issuing Bank or any Lender that is entitled to an exemption from or
reduction of withholding tax under the law of the jurisdiction in which the
applicable Borrower is resident or has its lending office, or any treaty to
which such jurisdiction is a party, with respect to payments under this Agreement
shall deliver to such Borrower (in the case of the Issuing Bank or such Lender,
with a copy to the Administrative Agent), at the time or times prescribed by
applicable law, such properly completed and executed documentation prescribed
by applicable law, if any, or reasonably requested by such Borrower as will
permit such payments to be made without withholding or at a reduced rate, provided
that the Administrative Agent, the Issuing Bank or such Lender has received
written notice from such Borrower advising it of the availability of such
exemption and supplying all applicable documentation.  The Administrative Agent, the Issuing Bank or
such Lender, as the case may be, shall cooperate with the applicable Borrower
in good faith to identify the potential availability of such exemption or
reduction.

(f)  If
the Administrative Agent, the Issuing Bank or a Lender, as the case may be,
determines, in its sole discretion, that it has received a refund of any
Indemnified Taxes or Other Taxes as to which it has been indemnified by any
Loan Party or with respect to which any Loan Party has paid additional amounts
pursuant to this Section 2.17, it shall pay over such refund to such Loan Party
(but only to the extent of indemnity payments made, or additional amounts paid,
by such Loan Party under this Section 2.17 with respect to the Indemnified
Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket
expenses of the Administrative Agent, the Issuing Bank or such Lender and
without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund), provided that such Loan Party,
upon the request of the Administrative Agent, the Issuing Bank or such Lender,
as the case may be, agrees to repay the amount paid over to such Loan Party (plus
any penalties, interest or other charges imposed by the relevant Governmental
Authority) to the Administrative Agent, the Issuing Bank or such Lender in the
event the Administrative Agent, the Issuing Bank or such Lender, as the case
may be, is required to repay such refund to such Governmental Authority.  This Section 2.17 shall not be construed to
require the Administrative Agent, the Issuing Bank or any Lender to make
available its tax returns (or any other information relating to its taxes which
it deems confidential) to any Loan Party or any other Person.

(g) If the Canadian
Subsidiary Borrower or any Canadian Subsidiary Loan Party shall receive an
assessment, reassessment or similar document assessing taxes whereby the
Canadian Subsidiary Borrower or such Canadian Subsidiary Loan Party shall be
required to pay any Excluded Taxes referred to in paragraph (e) of the
definition of “Excluded Taxes” in Section 1.01 as a result of the Canadian
Subsidiary Borrower or such Canadian Subsidiary Loan Party having paid or
credited (or been deemed to have paid or credited) an amount hereunder to a
Lender or other Person that is not a Canadian Resident, and such taxes were not
withheld from payments made hereunder in accordance with applicable law, then
(x) if the applicable Lender shall have failed to deliver notice to the
Canadian Subsidiary Borrower in accordance with Section 9.21, such Lender
or other Person shall promptly upon written demand therefor reimburse the
Canadian Subsidiary Borrower or such Canadian Subsidiary Loan Party for the
full amount of such Excluded Taxes and (y) in any other case, such Lender
or other Person shall promptly upon written demand therefor reimburse the
Canadian Subsidiary Borrower or such Canadian Subsidiary Loan Party for the
full amount of such Excluded Taxes (less the amount of any related penalty or
interest assessed against the Canadian Subsidiary Borrower, such Canadian
Subsidiary Loan Party or Lender or other Person by the relevant taxing
authority).

(h) The Canadian Subsidiary
Borrower shall, upon request, cooperate in good faith with the Administrative
Agent, the Issuing Bank or the applicable Lender, as the case may be, in
seeking a

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recovery
of any Excluded Taxes remitted by the Canadian Subsidiary Borrower or any
Canadian Subsidiary Loan Party on behalf of such Persons to a Governmental
Authority in accordance with this Agreement.

SECTION 2.18. 
Payments Generally; Pro Rata Treatment; Sharing of Set-offs.  (a) 
Each Borrower shall make each payment required to be made by it under
any Loan Document (whether of principal, amounts owing in respect of B/A
Drawings, interest, fees or reimbursement of L/C Disbursements, or of amounts
payable under Section 2.15, 2.16 or 2.17, or otherwise) prior to the time
expressly required under such Loan Document for such payment (or, if no such
time is expressly required, prior to 12:00 noon, Local Time), on the date when
due, in immediately available funds, without set-off or
counterclaim.  Any amounts received after
such time on any date may, in the discretion of the Administrative Agent, be
deemed to have been received on the next succeeding Business Day for purposes
of calculating interest thereon.  All
such payments (other than those required to be made to the Prepayment Account)
shall be made to the Administrative Agent at its offices at 270 Park Avenue,
New York, New York 10017 (or, in the case of payments made in respect of the
Canadian Obligations, to the Administrative Agent at its offices at 200 Bay
Street, 18th Floor, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J2),
except payments to be made directly to the Issuing Bank or Swingline Lender as
expressly provided herein and except that payments pursuant to Sections 2.15,
2.16, 2.17 and 9.03 shall be made directly to the Persons entitled thereto and
payments pursuant to other Loan Documents shall be made directly to the Persons
specified therein.  The Administrative
Agent shall distribute any such payments received by it for the account of any
other Person to the appropriate recipient promptly following receipt
thereof.  If any payment under any Loan
Document shall be due on a day that is not a Business Day, the date for payment
shall be extended to the next succeeding Business Day, and, in the case of any
payment accruing interest, interest thereon shall be payable for the period of
such extension.  All payments under each
Loan Document of principal or interest in respect of any Loan or amounts owing
in respect of any B/A Drawing (or of any breakage indemnity in respect of any
Loan or B/A Drawing) shall be made in the currency of such Loan or B/A Drawing;
all other payments under each Loan Document shall be made in U.S. Dollars,
except as otherwise expressly provided therein. 
At all times that full cash dominion is in effect pursuant to Section
3.06 of the Domestic Security Agreement and the Canadian Security Agreement (or
the applicable provisions, if any, of the other Collateral Documents), solely
for purposes of determining the amount of Loans available for borrowing
purposes or B/As available for drawing, checks and cash or other immediately
available funds from collections of items of payment and proceeds of any
Collateral shall be applied in whole or in part against the Obligations, on the
day of receipt, subject to actual collection.

(b)  If
at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, amounts owing in
respect of B/A Drawings, unreimbursed L/C Disbursements, interest and fees then
due hereunder, 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 (based on the U.S. Dollar Equivalent of such amounts or the U.S. Dollar
amount thereof, as applicable), and (ii) second, towards the payment of
principal, amounts owing in respect of B/A Drawings and unreimbursed L/C
Disbursements then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of principal, face amounts of B/As and amounts of
unreimbursed L/C Disbursements then due to such parties (based on the U.S.
Dollar Equivalent of such amounts or the U.S. Dollar amount thereof, as applicable),
except that, in the case of any such payment of funds by a Foreign Loan
Guarantor on behalf of the Canadian Subsidiary Borrower, the application of
such funds set out in clauses (i) and (ii) of this Section 2.18(b) may be
reversed in the Administrative Agent’s sole discretion.

(c)  At
the election of the Administrative Agent, all payments of principal, interest,
amounts owing in respect of any B/A Drawing, L/C Disbursements, fees, premiums,
reimbursable

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expenses (including, without limitation, all reimbursement for fees and
expenses pursuant to Section 9.03), and other sums payable under the Loan
Documents, may be paid from the proceeds of Borrowings or B/A Drawings made
hereunder, whether made following a request by the applicable Borrower pursuant
to Section 2.03 or Section 2.06, as applicable, or deemed a request as provided
in this Section 2.18, or may be deducted from any deposit account of the
applicable Borrower maintained with the Administrative Agent.  Each Borrower hereby irrevocably authorizes
(i) the Administrative Agent to make a Borrowing for the purpose of paying each
payment of principal, interest, fees and any other amount as it becomes due
under any Loan Document and agrees that all such amounts charged shall
constitute Loans (including Swingline Loans) and that all such Borrowings shall
be deemed to have been requested pursuant to Sections 2.03, 2.04 or 2.05, as
applicable, and (ii) the Administrative Agent to charge any deposit account of
such Borrower maintained with the Administrative Agent for each payment of
principal, interest, fees and any other amount due under any Loan Document.

(d)  If
any Lender shall, by exercising any right of set-off or counterclaim or
otherwise, obtain payment in respect of any principal of or interest on any of
its Revolving Loans, amounts owing in respect of B/A Drawings or participations
in L/C Disbursements or Swingline Loans resulting in such Lender receiving
payment of a greater proportion of the aggregate amount of its Revolving Loans,
amounts owing in respect of B/A Drawings and participations in L/C
Disbursements and Swingline Loans and accrued interest thereon than the
proportion received by any other Lender, then the Lender receiving such greater
proportion shall purchase (for cash at face value) participations in the
Revolving Loans, amounts owing in respect of B/A Drawings and participations in
L/C Disbursements and Swingline Loans of other Lenders to the extent necessary
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 Revolving Loans, amounts owing in respect of B/A Drawings and
participations in L/C Disbursements and Swingline Loans, provided that
(i) if any such participations are purchased and all or any portion of the
payment giving rise thereto is recovered, such participations shall be
rescinded and the purchase price restored to the extent of such recovery,
without interest, (ii) the provisions of this paragraph shall not be
construed to apply to any payment made by any 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 or participations in L/C Disbursements to any assignee or
participant, other than to the Parent Borrower or any Subsidiary or Affiliate
thereof (as to which the provisions of this paragraph shall apply) and
(iii) to the extent such amounts constitute obligations of the Canadian
Subsidiary Borrower or any Foreign Subsidiary, each Lender shall purchase such
participations through its Canadian Lending Office unless the applicable Lender
has delivered to the Canadian Subsidiary Borrower a notice pursuant to a
Section 9.21 in respect of such participations.  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 set-off 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.

(e) 
Unless the Administrative Agent shall have received notice from the
applicable Borrower prior to the date on which any payment is due to the
Administrative Agent for the account of the Lenders or the Issuing Bank
hereunder that such Borrower will not make such payment, the Administrative
Agent may assume that such Borrower has made such payment on such date in
accordance herewith and may, in reliance upon such assumption, distribute to
the Lenders or the Issuing Bank, as the case may be, the amount due.  In such event, if the applicable Borrower has
not in fact made such payment, then each of the Lenders or the Issuing Bank, as
the case may be, severally agrees to repay to the Administrative Agent
forthwith on demand the amount so distributed to such Lender or Issuing Bank
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 (i)(A) in the case of Loans

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made to the Parent Borrower or U.S. L/C Disbursements, the Federal
Funds Effective Rate, or (B) in the case of Loans made to the Canadian
Subsidiary Borrower, Canadian L/C Disbursements or amounts owing in respect of
B/A Drawings, the rate reasonably determined by the Administrative Agent to be
the cost to it of funding such amount, and (ii) a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation.

(f)  If
any Lender shall fail to make any payment required to be made by it pursuant to
Section 2.04(c), Section 2.05(d) or (e), Section 2.06(f), Section 2.07(a)
or (b), Section 2.18(e) or Section 9.03(c), then the Administrative Agent may,
in its discretion (notwithstanding any contrary provision hereof), apply any
amounts thereafter received by the Administrative Agent for the account of such
Lender to satisfy such Lender’s obligations under such Sections until all such
unsatisfied obligations are fully paid.

SECTION 2.19.  Mitigation
Obligations; Replacement of Lenders. 
(a)  If any Lender requests
compensation under Section 2.15, or if any Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 2.17, 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 reasonable
judgment of such Lender, such designation or assignment (i) would eliminate or
reduce amounts payable pursuant to Section 2.15 or 2.17, as the case may be, in
the future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender.  Each Borrower hereby agrees to pay all
reasonable costs and expenses incurred by any Lender in connection with any
such designation or assignment.

(b)  If any Lender requests
compensation under Section 2.15, or if any Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 2.17, or if any Lender defaults in its
obligation to fund Loans hereunder, then the applicable Borrower may, at its
sole expense and effort, upon notice to the 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
Section 9.04), all its interests, rights and obligations under this
Agreement to an assignee that shall assume such obligations (which assignee may
be another Lender, if a Lender accepts such assignment), provided that
(i) the applicable Borrower shall have received the prior written consent of
the Administrative Agent and the Issuing Bank, which consent shall not
unreasonably be withheld, (ii) such Lender shall have received payment of an
amount equal to the outstanding principal amount of its Loans, amounts owing in
respect of B/A Drawings and participations in L/C Disbursements and Swingline
Loans, accrued interest thereon, accrued fees and all other amounts payable to
it under any Loan Document, from the assignee (to the extent of such
outstanding principal, amounts owing in respect of B/A Drawings and accrued
interest and fees) or the applicable Borrower (in the case of all other amounts)
and (iii) in the case of any such assignment resulting from a claim for
compensation under Section 2.15 or payments required to be made pursuant
to Section 2.17, such assignment will result in a reduction in such
compensation 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 applicable Borrower to require such assignment and delegation
cease to apply.

SECTION 2.20.  Returned
Payments.  If after receipt of any
payment which is applied to the payment of all or any part of the Obligations,
the Administrative Agent or any Lender is for any reason compelled to surrender
such payment or proceeds to any Person because such payment or application of
proceeds is invalidated, declared fraudulent, set aside, determined to be void
or voidable as a preference, impermissible setoff, or a diversion of trust
funds, or for any other reason, then the Obligations or part thereof intended
to be satisfied shall be revived and continued and this Agreement shall
continue in full force as if such payment or proceeds had not been received by
the Administrative

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Agent or such
Lender.  The provisions of this Section
2.20 shall be and remain effective notwithstanding any contrary action which
may have been taken by the Administrative Agent or any Lender in reliance upon
such payment or application of proceeds. 
The provisions of this Section 2.20 shall survive the termination of
this Agreement.

SECTION 2.21.  Revolving
Commitment Increases.  (a)  At any time and from time to time during the
Availability Period, but in any event, no more than two times during the
Availability Period, the Parent Borrower may, by notice to the Administrative
Agent (whereupon the Administrative Agent shall promptly deliver a copy of such
notice to each of the Lenders), request to add one or more increases in the
aggregate amount of the Revolving Commitments (each such increase, a “Revolving
Commitment Increase”) having terms identical to the existing Revolving
Commitments, provided that at the time of each such request and upon the
effectiveness of each Commitment Increase Amendment (as defined below), (a) no
Default has occurred and is continuing or shall result therefrom, (b) the
Parent Borrower shall be in compliance on a pro forma basis with the covenant
contained in Section 6.12 recomputed as of the last day of the most-recently
ended fiscal quarter of the Parent Borrower and (c) the Parent Borrower shall
have delivered a certificate of a Financial Officer to the effect set forth in
clauses (a) and (b) above, together with reasonably detailed calculations
demonstrating compliance with clause (b) above. 
Notwithstanding anything to contrary herein, the aggregate principal
amount of the Revolving Commitment Increases shall not exceed $40,000,000.  Each Revolving Commitment Increase shall be
in an integral multiple of $2,000,000 and be in an aggregate principal amount
that is not less than $15,000,000, provided that such amount may be less
than $15,000,000 if such amount represents all the remaining availability under
the aggregate principal amount of Revolving Commitment Increases set forth
above.

(b)  Each notice from the Parent
Borrower pursuant to this Section 2.21 shall set forth the requested
amount of the relevant Revolving Commitment Increases and shall provide that to
the extent any Revolving Commitment Increase relates to a Lender’s Canadian
Revolving Sub-Commitment, any Loans made pursuant thereto shall be made by the
Lender’s Canadian Lending Office unless the applicable Lender has delivered to
the Canadian Subsidiary Borrower a notice pursuant to Section 9.21 in
respect thereof.  Any additional bank,
financial institution, existing Lender or other Person that elects to extend an
Revolving Commitment Increase shall be reasonably satisfactory to the Parent
Borrower, the Administrative Agent and the Issuing Bank (any such bank,
financial institution, existing Lender or other Person being called an “Additional
Lender”) and, if not already a Lender, shall become a Lender under this
Agreement pursuant to an amendment (a “Commitment Increase Amendment”)
to this Agreement and, as appropriate, the other Loan Documents, executed by
Holdings, the Parent Borrower, such Additional Lender and the Administrative
Agent.  No Lender shall be obligated to
provide any Revolving Commitment Increase unless it so agrees.  Commitments in respect of any Revolving
Commitment Increase shall become Commitments (or in the case of any Revolving
Commitment Increase to be provided by an existing Lender, an increase in the
Revolving Commitment of such Lender) under this Agreement.  A Commitment Increase Amendment may, without
the consent of any other Lenders, effect such amendments to any Loan Documents
as may be necessary or appropriate, in the opinion of the Administrative Agent,
to effect the provisions of this Section 2.21. 
The effectiveness of any Commitment Increase Amendment shall, unless
otherwise agreed to by the Administrative Agent and the Additional Lenders, be
subject to the satisfaction of each of the conditions set forth in Section 4.02
on the date thereof.  The proceeds of any
Revolving Commitment Increases will be used only for working capital and
general corporate purposes and to finance any Permitted Acquisition.

(c)  Upon each Revolving
Commitment Increase pursuant to this Section 2.21, (i) each Lender immediately
prior to such increase will automatically and without further act be deemed to
have assigned to each Additional Lender, and each such Additional Lender will
automatically and without further act be deemed to have assumed, a portion of
such Lender’s (x) Canadian Revolving Sub-Commitment

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and (y)
participations hereunder in outstanding Letters of Credit and Swingline Loans
such that, after giving effect to such Revolving Commitment Increase and each
such deemed assignment and assumption, the percentage of the aggregate (A)
Canadian Revolving Sub-Commitments, (B) outstanding participations hereunder in
Letters of Credit and (C) outstanding participations hereunder in Swingline
Loans, in each case held by each Lender (including each such Additional Lender)
will equal such Lender’s Applicable Percentage and (ii) if, on the date of such
Revolving Commitment Increase, there are any Revolving Loans outstanding or
amounts owing in respect of outstanding B/A Drawings, such Revolving Loans and
amounts owing in respect of outstanding B/A Drawings shall on or prior to the
effectiveness of such Revolving Commitment Increase be prepaid from the
proceeds of additional Revolving Loans made and B/As accepted and purchased
hereunder (reflecting such Revolving Commitment Increase), which prepayment
shall (x) be accompanied by accrued interest on the Revolving Loans being
prepaid and any costs incurred by any Lender in accordance with Section 2.16
and (y) in the case of outstanding B/A Drawings, be done in accordance with
Section 2.11(e).  The Administrative
Agent and the Lenders hereby agree that the minimum borrowing, pro  rata
borrowing and pro  rata payment requirements contained elsewhere
in this Agreement shall not apply to the transactions effected pursuant to the
immediately preceding sentence.

SECTION 2.22.  Delivery of a
Borrowing Base Certificate. 
Notwithstanding any provision of this Agreement to the contrary,
subsequent to each date on which (x) the Average Availability or (y)
Availability for the preceding period of four consecutive Business Days, in
either case is less than $30,000,000 (each such date, a “Delivery Trigger
Date”), neither Borrower shall be permitted to make a Borrowing, request
the issuance of a Letter of Credit or request an acceptance and purchase of a
B/A pursuant to this Agreement unless such Borrower shall have delivered to the
Administrative Agent a Borrowing Base Certificate pursuant to Section 5.01(f)
as of a date no earlier than seven days prior to the date of such Borrowing; provided,
however, that after the date that is (i) in the case of the first
Delivery Trigger Date, 45 consecutive days after such Delivery Trigger Date, or
(ii) in the case of any subsequent Delivery Trigger Date, 180 consecutive days
after any such Delivery Trigger Date, neither Borrower shall be required to
deliver a Borrowing Base Certificate pursuant to this Section 2.22 if the Reference
Availability following such 45 or 180 consecutive days, as the case may be,
shall have exceeded $35,000,000 for a period of five consecutive Business Days
prior to the date of such Borrowing.

ARTICLE III

Representations
and Warranties

Each Loan Party represents
and warrants to the Lenders that:

SECTION 3.01. 
Organization; Powers.  Each
of the Loan Parties and each of its subsidiaries is duly organized, validly
existing and, to the extent such concept is applicable in the corresponding
jurisdiction, in good standing under the laws of the jurisdiction of its
organization, has all requisite power and authority to carry on its business as
now conducted and as proposed to be conducted, to execute, deliver and perform
its obligations under each Loan Document to which it is a party and to effect
the Transactions and, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect, is qualified to do business in, and is in good standing in, every
jurisdiction where the conduct of its business requires such qualification.

SECTION 3.02. 
Authorization; Enforceability. 
The Transactions are within each Loan Party’s corporate (or, to the
extent applicable, other organization) powers and have been duly authorized by
all necessary corporate (or, to the extent applicable, other organization)
action and, if required, stockholder action. 
The Loan Documents to which each Loan Party is a party have been duly
executed and delivered by such Loan Party and constitute a legal, valid and
binding obligation of such Loan Party,

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enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law.

SECTION 3.03. 
Governmental Approvals; No Conflicts.  Except as otherwise set forth in Schedule
3.03, the Transactions (a) do not require any material consent or approval of,
registration or filing with, or any other action by, any Governmental
Authority, except (i) such as have been obtained or made and are in full force
and effect and (ii) for filings necessary to perfect Liens created pursuant to
the Loan Documents, (b) will not violate any Requirement of Law applicable to
any Loan Party or any of its subsidiaries, (c) will not violate or result in a
default under any material indenture, agreement or other instrument binding
upon any Loan Party or any of its subsidiaries or its assets, or give rise to a
right thereunder to require any payment to be made by any Loan Party or any of
its subsidiaries or give rise to a right of, or result in, termination,
cancelation or acceleration of any obligation thereunder, and (d) will not
result in the creation or imposition of any Lien on any asset of any Loan Party
or any of its subsidiaries, except Liens created pursuant to the Loan
Documents.

SECTION 3.04. 
Financial Condition; No Material Adverse Change.  (a)  The
Parent Borrower has heretofore furnished to the Administrative Agent the
combined balance sheet and statements of income, stockholders equity and cash
flows of the U.S. Company, the Canadian Company and their respective
subsidiaries, in each case (i) as of and for the fiscal year ended December 31,
2004, reported on by Deloitte & Touche LLP, independent public accountants,
(ii) as of and for the three fiscal quarters ended September 26, 2004, the
fiscal quarter ended March 31, 2005 and the two fiscal quarters ended October
2, 2005, certified by a Financial Officer, and (iii) as of and for the fiscal
months ended on or about October 31, 2005 and 2004, certified by a Financial
Officer.  Such financial statements
present fairly, in all material respects, the financial position and results of
operations and cash flows of the U.S. Company, the Canadian Company and their
respective subsidiaries as of such dates and for such periods and, in the case
of the financial statements referred to in clause (i) above, were prepared in
accordance with GAAP, subject to year-end audit adjustments and the
absence of footnotes.

(b)  The Parent Borrower has
heretofore furnished to the Lenders its pro forma combined balance sheet as of
October 2, 2005, prepared giving effect to the Transactions as if the
Transactions had occurred on such date. 
Such pro forma combined balance sheet (i) has been prepared in good
faith based on the same assumptions used to prepare the pro forma financial
statements included in the Information Memorandum (which assumptions are
believed by Holdings and the Parent Borrower to be reasonable), (ii) accurately
reflects all adjustments necessary to give effect to the Transactions (it being
understood and agreed that purchase accounting adjustments will not have been
made on such pro forma combined balance sheet) and (iii) presents fairly, in
all material respects, the estimated pro forma financial position of the Parent
Borrower and the Subsidiaries as of September 30, 2005, as if the Transactions
had occurred on such date.

(c)  Except as disclosed in the
financial statements referred to in paragraphs (a) and (b) of this Section 3.04
or the notes thereto or in the Information Memorandum and except for the
Disclosed Matters, after giving effect to the Transactions, none of the Loan
Parties has, as of the Effective Date, any material direct or contingent
liabilities, unusual long-term commitments or unrealized losses.

(d)  With respect to any Borrowing, acceptance and
purchase of B/As and issuance, amendment, renewal or extension of Letters of
Credit following the Effective Date, no event, change, effect or circumstance
has occurred that, individually or in the aggregate, has had, or could
reasonably be expected to have, a Material Adverse Effect, since June 30, 2005.

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SECTION 3.05.  Properties.  (a)  As
of the date of this Agreement, Schedule 3.05(a) sets forth the address
of each parcel of real property that is owned or leased by each Loan Party
after giving effect to the Transactions. 
Each of such leases and subleases is valid and enforceable in accordance
with its terms and is in full force and effect, and no default by any party to
any such lease or sublease exists, except any such default that could not
reasonably be expected to result in a Material Adverse Effect.  Each of the Loan Parties and its subsidiaries
has good title to, or valid leasehold interests in, all its real and personal
property material to its business (including the Mortgaged Properties), except
for Permitted Encumbrances and minor defects in title that do not materially
interfere with its ability to conduct its business as currently conducted or
are described in a mortgage policy of the title insurance or surveys issued in
favor of, and accepted by, the Administrative Agent in respect of any property.

(b)  Each
Loan Party and its subsidiaries owns, or is licensed to use, all trademarks,
tradenames, copyrights, patents and other intellectual property material to its business as currently
conducted, a list  (correct and complete
in all material respects) of which, as of the date of this Agreement, is set
forth on Schedule 3.05(b), and the use thereof by the Loan
Parties and their respective subsidiaries does not infringe in any material
respect upon the rights of any other Person, and, as of the date of this
Agreement, the Loan Parties’ rights thereto are not subject to any licensing agreement or similar arrangement, except as
set forth on Schedule 3.05(b).

(c)  As of the Effective Date, no
Loan Party nor any of its subsidiaries has received notice of, or, to the
knowledge of any Responsible Officer of any Loan Party or any of its
subsidiaries, has knowledge of, any pending or contemplated condemnation or
expropriation proceeding affecting any Mortgaged Property or any sale or
disposition thereof in lieu of condemnation. 
Except in respect of any purchase agreement entered into for Mortgaged
Property that does not conflict with the terms hereof, neither any Mortgaged
Property nor any interest therein is subject to any right of first refusal,
option or other contractual right to purchase such Mortgaged Property or
interest therein.

SECTION 3.06.  Litigation and
Environmental Matters.  (a)  There are no actions, suits or proceedings by
or before any arbitrator or Governmental Authority pending against or, to the
knowledge of any Responsible Officer of any Loan Party or any of its
subsidiaries, threatened against or affecting the Loan Parties or any of their
respective subsidiaries (i) that could reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect (other
than the Disclosed Matters) or (ii) that involve any of the Loan Documents
or the Transactions.

(b)  Except for the Disclosed
Matters (i) no Loan Party nor any of its subsidiaries has received written
notice of any claim with respect to any Environmental Liability or, to the
knowledge of any Responsible Officer of any Loan Party or any of its
subsidiaries, knows of any basis for any Environmental Liability, in each case
that could reasonably be expected to result in a Material Adverse Effect and
(ii) and except with respect to any other matters that, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect, no Loan Party nor any of its subsidiaries (1) has failed to comply
with any Environmental Law or to obtain, maintain or comply with any permit,
license or other approval required under any Environmental Law or (2) has
become subject to any Environmental Liability.

SECTION 3.07.  Compliance with
Laws and Agreements.  Each Loan Party
and its subsidiaries is in compliance with (a) all Requirements of Law
applicable to it or its property and (b) all indentures, agreements and other
instruments binding upon it or its property, except, in the case of each of
clauses (a) and (b), where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

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SECTION 3.08.  Investment and
Holding Company Status.  No Loan
Party nor any of its subsidiaries is (a) an “investment company” as
defined in, or subject to regulation under, the Investment Company Act of 1940
or (b) a “holding company” as defined in, or subject to regulation under,
the Public Utility Holding Company Act of 1935, provided that the
representation and warranty set forth in clause (b) of this Section 3.08 shall
no longer be applicable on and after the date on which the Public Utility
Holding Company Act of 1935 is repealed.

SECTION 3.09.  Taxes.  Except as set forth on Schedule 3.09,
each Loan Party and its subsidiaries (a) has timely filed or caused to be filed
all Tax returns and reports required to have been filed, except to the extent
that failure to do so could not reasonably be expected to result in a Material
Adverse Effect and (b) has paid or caused to be paid all material Taxes
required to have been paid by it, except Taxes that are being contested in good
faith by appropriate proceedings, provided that such Loan Party or such
subsidiary, as applicable, has set aside on its books adequate reserves as
required by GAAP and the failure to pay such Taxes could not be expected to
result in a Material Adverse Effect.

SECTION 3.10.  ERISA.  (a)  No
ERISA Event has occurred or is reasonably expected to occur that, when taken
together with all other such ERISA Events for which liability is reasonably
expected to occur, could reasonably be expected to result in a Material Adverse
Effect.  The present value of all
accumulated benefit obligations under all Plans (based on the assumptions used
for purposes of Statement of Financial Accounting Standards No. 87) did
not, as of the date of the most recent financial statements reflecting such
amounts, exceed the fair market value of the assets of such Plans by an amount
that could reasonably be expected to result in a Material Adverse Effect, and
the present value of all accumulated benefit obligations of all underfunded
Plans (based on the assumptions used for purposes of Statement of Financial
Accounting Standards No. 87) did not, as of the date of the most recent financial
statements reflecting such amounts, exceed by more than $40,000,000 the fair
market value of the assets of all such underfunded Plans.  The minimum funding standards of ERISA and
the Code with respect to each Plan have been satisfied.

(b)  Canadian Benefit and
Pension Plans.  The Canadian Pension
Plans are duly registered in accordance with any Requirement of Law that
requires registration and no event has occurred which is reasonably likely to
cause the loss of such registered status. 
All material obligations of the Borrowers and each Subsidiary (including
fiduciary, funding, investment and administration obligations) required to be
performed in connection with the Canadian Pension Plans and the funding
agreements therefor have been performed in a timely fashion.  As of the Effective Date, there are no
outstanding disputes concerning the assets held under the funding agreements
for the Canadian Pension Plans or the Canadian Benefit Plans.  The funded status, on a partial wind-up or
full wind-up basis, as specified in the attached Schedule 3.10(b), of each of
the Canadian Pension Plans as determined in the actuarial valuations last filed
with the applicable Governmental Authorities prior to the Effective Date, which
were prepared in accordance with applicable law and based on methods and
assumptions that are consistent with generally accepted actuarial principles,
is set out in Schedule 3.10(b).  To the
knowledge of the Loan Parties, except as set out in Schedule 3.10(b), there has
been no full or partial terminations of any Canadian Pension Plan.  As of the Effective Date, except as set out
in Schedule 3.10(b), the Loan Parties have received no inquiries from any
Governmental Authority and no notice of any dispute with respect to the
potential application of the decision of the Supreme Court of Canada in
Monsanto Canada Inc. v. Superintendent of Financial Services (Ontario) [2004],
3 S.C.R. 152 to any Canadian Pension Plan. 
No promises of benefit improvements under the Canadian Pension Plans or
the Canadian Benefit Plans have been made except where such improvement could
not reasonably be expected to have a Material Adverse Effect.  All contributions or premiums required to be
made or paid by either Borrower or any Subsidiary to the Canadian Pension Plans,
any Canadian Multi-Employer Plan or the Canadian Benefit Plans have been made
or paid in a timely fashion in accordance with the terms of such plans and all
Requirements of Law.  All employee
contributions to the Canadian Pension Plans or the Canadian Benefit

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Plans by way
of authorized payroll deduction or otherwise have been properly withheld or
collected by each of the Borrowers and the Subsidiaries, as the case may be,
and fully paid into such plans in a timely manner.  Schedule 3.10(b) lists, as of the Effective
Date, all “participation agreements” entered into by either Borrower or any
Subsidiary and a labor union with respect to such Borrower or Subsidiary’s
participation in a Canadian Multi-Employer Plan and the most current executed
supplement thereto as of the Effective Date. 
The pension fund under each Canadian Pension Plan is exempt from the
payment of any income tax and, to the knowledge of the Loan Parties, there are
no taxes, penalties or interest owing in respect of any such pension fund.  All material reports and disclosures relating
to the Canadian Pension Plans required by such plans and any Requirement of Law
to be filed or distributed have been filed or distributed in a timely manner.

SECTION 3.11.  Disclosure.  Neither the Information Memorandum nor any of
the other reports, financial statements, certificates or other information
furnished by or on behalf of any Loan Party to the Administrative Agent or any
Lender in connection with the negotiation of this Agreement or any other Loan Document
(as modified or supplemented by other information so furnished and excluding
information of a general economic or industry-specific nature), when taken as a
whole, contains any material misstatement of fact or omits to state any
material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, provided that
with respect to projected financial information, the Parent Borrower and
Holdings represent only that such information was prepared in good faith based
upon assumptions believed to be reasonable at the time delivered and, if such
projected financial information was delivered prior to the Effective Date, as
of the Effective Date.

SECTION 3.12.  Solvency.  (a)  To
the knowledge of any Loan Party or any of its subsidiaries, immediately after
the consummation of the Transactions to occur on the Effective Date, (i) the
fair value of the assets of each Loan Party, at a fair valuation, will exceed
its debts and liabilities, subordinated, contingent or otherwise, (ii) the
present fair saleable value of the property of each Loan Party will be greater
than the amount that will be required to pay the probable liability of its
debts and other liabilities, subordinated, contingent or otherwise, as such
debts and other liabilities become absolute and matured, (iii) each Loan Party
will be able to pay its debts and liabilities, subordinated, contingent or
otherwise, as such debts and liabilities become absolute and matured and shall
not have ceased to pay its current obligations in the ordinary course of
business as they generally become due and (iv) each Loan Party will not
have unreasonably small capital with which to conduct the business in which it
is engaged as such business is now conducted and is proposed to be conducted
after the Effective Date, in each case after giving effect to any rights of
indemnification, contribution or subrogation arising among the Subsidiary Loan
Parties pursuant to any Loan Document or by law.

(b)  To the knowledge of any Loan
Party or any of its subsidiaries, no Loan Party intends to, or will permit any
of its subsidiaries to, and no Loan Party believes that it or any of its
subsidiaries will, incur debts beyond its ability to pay such debts as they
mature, taking into account the timing of and amounts of cash to be received by
it or any such subsidiary and the timing of the amounts of cash to be payable
on or in respect of its Indebtedness or the Indebtedness of any such subsidiary
and after giving effect to any rights of indemnification, contribution or
subrogation arising among the Subsidiary Loan Parties pursuant to any Loan
Document or by law.

SECTION 3.13.  Insurance.  Schedule 3.13 sets forth a
description of all insurance maintained by or on behalf of the Loan Parties and
their respective subsidiaries as of the Effective Date.  As of the Effective Date, all premiums then
due in respect of such insurance have been paid or have been satisfied by a
financing expressly permitted hereunder. 
Each Loan Party believes that the insurance maintained by or on behalf
of Loan Parties and its subsidiaries is in such amounts (with no greater risk
retention) and against such risks as is (i) customarily maintained by companies
of established repute

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engaged in the
same or similar businesses operating in the same or similar locations and (ii)
considered adequate by Holdings and the Parent Borrower.

SECTION 3.14.  Capitalization
and Subsidiaries.  Holdings does not
have any subsidiaries other than the Parent Borrower and the Subsidiaries.  As of the Effective Date, Schedule 3.14
sets forth (a) a correct and complete list of the name and relationship to the
Parent Borrower of each Subsidiary, (b) a true and complete listing of each
class of each of the Parent Borrower’s and each Subsidiary’s authorized Equity
Interests, of which all of such issued shares are validly issued, outstanding,
fully paid and non-assessable, and owned beneficially and of record by the
Persons identified on Schedule 3.14, and (c) the type of entity of the
Parent Borrower and each Subsidiary, in each case as of the Effective
Date.  All of the issued and outstanding
Equity Interests issued by any Subsidiary that are owned by any Loan Party have
been (to the extent such concepts are relevant with respect to such ownership
interests) duly authorized and issued and are fully paid and non-assessable.

SECTION 3.15.  Labor Disputes.  As of the Effective Date, there are no
strikes, lockouts or slowdowns or any other material labor disputes against any
Loan Party or any of its subsidiaries pending or, to the knowledge of any
Responsible Officer of any Loan Party or any of its subsidiaries,
threatened.  The hours worked by and
payments made to employees of the Loan Parties and their respective
subsidiaries have not been in violation of the Fair Labor Standards Act or any
other applicable federal, state, provincial, local or foreign law dealing with
such matters, except for any such violations that, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.  All payments due from any Loan
Party or any of its subsidiaries, or for which any claim may be made against
any Loan Party or any of its subsidiaries, on account of wages and employee
health and welfare insurance and other benefits, have been paid or accrued as a
liability on the books of the Loan Party or such subsidiary, except for any
such failures to do so that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.  There is no organizing activity involving any
Loan Party or any of its subsidiaries pending or, to the knowledge of any
Responsible Officer of any Loan Party or any of its subsidiaries, threatened by
any labor union or group of employees, except those that, in the aggregate,
could not reasonably be expected to have a Material Adverse Effect.  There are no representation proceedings
pending or, to the knowledge of any Loan Party or any of its subsidiaries,
threatened with the National Mediation Board, and no labor organization or
group of employees of any Loan Party or any of its subsidiaries has made a
pending demand for recognition, except those that, in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.  There are no material complaints or charges
against any Loan Party or any of its subsidiaries pending or, to the knowledge
of any Responsible Officer of any Loan Party or any of its subsidiaries,
threatened to be filed with any Governmental Authority or arbitrator based on,
arising out of, in connection with, or otherwise relating to the employment or
termination of employment by any Loan Party or any of its subsidiaries of any
individual, except those that, in the aggregate, could not reasonably be
expected to have a Material Adverse Effect. 
The consummation of the Transactions will not give rise to any right of
termination or right of renegotiation on the part of any union under any
collective bargaining agreement to which any Loan Party or any of its
subsidiaries is bound.

ARTICLE IV

Conditions

SECTION 4.01.  Effective Date.  The obligations of the Lenders to make Loans
and accept and purchase B/As hereunder and of the Issuing Bank to issue Letters
of Credit hereunder shall not become effective until the date on which each of the
following conditions is satisfied (or waived in accordance with Section 9.02):

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(a)  Credit Agreement and Loan
Documents.  The Administrative Agent
(or its counsel) shall have received (i) from each party hereto either
(A) a counterpart of this Agreement signed on behalf of such party or (B)
written evidence reasonably satisfactory to the Administrative Agent (which may
include facsimile transmission of a signed signature page of this Agreement)
that such party has signed a counterpart of this Agreement and (ii) duly
executed copies of the other Loan Documents and such other certificates,
documents, instruments and agreements as the Administrative Agent shall
reasonably request in connection with the transactions contemplated by this
Agreement and the other Loan Documents, including any promissory notes
requested by a Lender pursuant to Section 2.10(f) payable to the order of each
such requesting Lender.

(b)  Legal Opinions.  The Administrative Agent shall have received
a favorable written opinion (addressed to the Administrative Agent and the
Lenders and dated the Effective Date) of each of (i) Kirkland & Ellis
LLP, counsel for Holdings, the Parent Borrower and the Subsidiaries,
substantially in the form of Exhibit B-1, (ii) Blake, Cassels &
Graydon LLP, Canadian local counsel for the Canadian Subsidiary Borrower,
substantially in the form of Exhibit B-2, and (iii) Allen & Overy
LLP, United Kingdom local counsel for the Administrative Agent, substantially
in the form of Exhibit B-3.  Each
of Holdings and the Parent Borrower hereby requests such counsel to deliver
such opinions.

(c)  Closing Certificates;
Certified Certificate of Incorporation; Good Standing Certificates.  The Administrative Agent shall have received
(i) a certificate of each Loan Party, dated the Effective Date and executed by
its Secretary or Assistant Secretary, which shall (A) certify the resolutions
of its Board of Directors, members or other body authorizing the execution,
delivery and performance of the Loan Documents to which it is a party, (B)
identify by name and title and bear the signatures of the Financial Officers
and any other officers of such Loan Party authorized to sign the Loan Documents
to which it is a party, and (C) contain appropriate attachments, including the
certificate or articles of incorporation or organization of each Loan Party
certified by the relevant authority of the jurisdiction of organization of such
Loan Party and a true and correct copy of its by-laws or operating,
management or partnership agreement, and (ii) a long-form good standing
certificate for each Loan Party from its jurisdiction of organization, all in
form and substance reasonably satisfactory to the Administrative Agent and its
counsel.

(d)  No Default Certificate.  The Administrative Agent shall have received
a certificate, dated the Effective Date and signed by a Financial Officer, (i)
stating that, as of the Effective Date and after giving effect to the
Transactions, no Default has occurred and is continuing, (ii) stating that the
representations and warranties contained in Article III (other than the
representations and warranties set forth in Sections 3.04(d) and 3.06(a))
that are qualified by materiality shall be true and correct, and the
representations and warranties that are not so qualified shall be true and
correct in all material respects, as of the Effective Date, and (iii)
certifying any other factual matters as may be reasonably requested by the
Administrative Agent.

(e)  Fees.  The Lenders and the Administrative Agent
shall have received all fees required to be paid, and all expenses for which
invoices have been presented on or before the Effective Date (including the
reasonable fees and expenses of legal counsel). 
All such amounts will be paid with proceeds of Loans made on the Effective
Date and will be reflected in the funding instructions given by the Parent
Borrower to the Administrative Agent before the Effective Date.

(f)  Perfection Certificates;
Lien Searches.  The Administrative
Agent shall have received (i) completed Perfection Certificates, dated the
Effective Date and signed by a Financial Officer or legal officer of the Parent
Borrower or the Canadian Subsidiary Borrower, as applicable, together with all
attachments contemplated thereby, and (ii) the results of a recent lien search
in (A) each of the jurisdictions where assets of the Loan Parties are located
and (B) the jurisdiction of formation of each

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Loan Party,
and such search shall reveal no Liens on any of the assets of the Loan Parties
or their respective subsidiaries except for Liens permitted by Section 6.02 or
discharged on or prior to the Effective Date pursuant to documentation
reasonably satisfactory to the Administrative Agent.

(g)  Funding Account.  The Administrative Agent shall have received
a notice setting forth the deposit account of each Borrower (collectively, the “Funding
Accounts”) to which the Administrative Agent is authorized by such Borrower
to transfer the proceeds of any Borrowings by such Borrower requested or
authorized pursuant to this Agreement.

(h)  Collateral Access and
Control Agreements.  The
Administrative Agent shall have received each (i) Collateral Access Agreement
required to be provided pursuant to the Collateral Documents and (ii) Deposit
Account Control Agreement required to be provided pursuant to the Collateral
Documents, in each case as required to be delivered on the Effective Date.

(i)  Solvency.  The Administrative Agent shall have received
a solvency certificate from the chief financial officer of the Parent Borrower,
in form and substance reasonably satisfactory to the Administrative Agent,
together with such other evidence reasonably requested by the Lenders,
confirming the solvency of (i) the Parent Borrower and the Subsidiaries and
(ii) the Canadian Subsidiary Borrower and its subsidiaries, in each case on a
consolidated basis after giving effect to the Transactions.

(j)  Borrowing Base
Certificate.  The Administrative
Agent shall have received a Borrowing Base Certificate which calculates the
Borrowing Base for each Borrower as of January 27, 2006 (provided that for
purposes of such Borrowing Base Certificate, Eligible Inventory shall be
calculated as of December 31, 2005).

(k)  Closing Availability.  After giving effect to all Borrowings to be
made on the Effective Date and the issuance of any Letters of Credit and the
acceptance and purchase of any B/As, in each case, on the Effective Date and
payment of all fees and expenses due hereunder, and with all of the Loan
Parties’ indebtedness, liabilities, and obligations current, the Borrowers’
Availability shall not be less than $90,000,000.

(l)  Senior Secured Notes;
Equity Contribution.  The Parent
Borrower shall have received gross cash proceeds of not less than $266,562,900
from the issuance of the Senior Secured Notes.  The Administrative Agent shall have received
copies of the Senior Secured Notes Documents, certified by a Financial Officer
as being complete and correct.  In
addition, the Parent Borrower shall have received not less than $111,250,000 in
cash as a result of the Equity Contributions.

(m)  Pledged Stock; Stock
Powers; Pledged Notes.  The
Administrative Agent shall have received (i) the certificates representing the
Equity Interests to be pledged pursuant to the Collateral Documents, together
with an undated stock power for each such certificate executed in blank by a
duly authorized officer of the pledgor thereof and (ii) each promissory note
(if any) pledged to the Administrative Agent pursuant to the Collateral
Documents endorsed (without recourse) in blank (or accompanied by an executed
transfer form in blank) by the pledgor thereof.

(n)  Filings, Registrations
and Recordings.  Each document
(including any financing statement, fixture filing, mortgage, deed of trust or
other document) required by the Collateral Documents or under law or
reasonably requested by the Administrative Agent to be filed, registered or
recorded in order to create in favor of the Administrative Agent, for the
benefit of the Lenders, a perfected Lien on the Collateral described therein,
prior and superior in right to any other Person (other than with respect to
Liens expressly permitted by Section 6.02), shall be in proper form for filing,
registration or recordation.

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(o)  Mortgages, etc.  The Administrative Agent shall have received,
with respect to each Mortgaged Property, each of the following, in form and
substance reasonably satisfactory to the Administrative Agent:

(i) a Mortgage
on such property;

(ii) evidence
that a counterpart of the Mortgage has been recorded (or delivered to the title
insurance company to be recorded after the consummation of the Transactions) in
the place necessary, in the Administrative Agent’s judgment, to create a valid
and enforceable first priority Lien in favor of the Administrative Agent for
the benefit of itself and the Lenders;

(iii) ALTA
title policy (or equivalent Canadian or other non-U.S. title policy, as
applicable);

(iv) an ALTA
survey (or equivalent Canadian or other non-U.S. survey, as applicable)
prepared and certified to the Administrative Agent by a surveyor reasonably
acceptable to the Administrative Agent;

(v) an opinion
of counsel in the state or province in which such parcel of real property is
located in form and substance and from counsel reasonably satisfactory to the
Administrative Agent; and

(vi) such
other information, documentation, and certifications as may be reasonably
required by the Administrative Agent.

(p)  Material Adverse Effect.  The Administrative Agent shall be satisfied
that (i) no event, change, effect or circumstance has occurred that,
individually or in the aggregate, has had, or could reasonably be expected to
have, an IAS Material Adverse Effect since June 30, 2005, and (ii) a Purchaser
Material Adverse Effect has not occurred.

(q)  Consummation of
Transactions.  The Transactions shall
have been consummated or shall be consummated substantially simultaneously with
the initial funding of the Loans on the Effective Date in accordance with
applicable law, the Acquisition Documents and all other related documentation (without
giving effect to any amendments or waivers to or of such documents that are
materially adverse to the Lenders and not approved by the Administrative
Agent).  The Administrative Agent shall
have received copies of the Acquisition Documents, certified by a Financial
Officer as being complete and correct. 
The Transactions shall have been consummated in a manner consistent with
the sources and uses shown in the term sheet included in the Information
Memorandum.  The fees and expenses
incurred in connection with the Transactions shall not exceed $25,000,000 in
the aggregate.

(r)  Indebtedness.  After giving effect to the Transactions, none
of Holdings, the Parent Borrower nor any Subsidiary shall have outstanding any
Indebtedness or any shares of preferred stock, other than (a) the Loans
and other Indebtedness incurred under this Agreement and the other Loan
Documents, (b) the Senior Secured Notes, (c) Indebtedness set forth
on Schedule 6.01 and (d) the other Indebtedness permitted by Section
6.01.  The terms and conditions of all
Indebtedness listed on Schedule 6.01 (including terms and conditions
relating to interest rates, fees, amortization, maturity, redemption,
subordination, covenants, events of default and remedies) and all such
preferred stock to remain outstanding after the Effective Date (including terms
and conditions relating to dividend rates, the payment of cash dividends, fees,
redemption, covenants and remedies) shall be reasonably satisfactory in all
respects to the Administrative Agent.

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(s)  Litigation.  There shall not be any litigation,
arbitration, administrative proceeding or consent decree that could reasonably
be expected to have (i) an IAS Material Adverse Effect after giving effect to
the Transactions or (ii) a Purchaser Material Adverse Effect.

(t)  Consents and Approvals.  All requisite material Governmental
Authorities shall have approved or consented to the Transactions to the extent
required, all applicable waiting periods (including any extensions thereof)
shall have expired and there shall be no governmental or judicial action,
actual or threatened, that could reasonably be expected to restrain, prevent or
impose materially burdensome conditions on the Transactions.

(u)  Leverage Ratio.  After giving effect to the Transactions, the
Parent Borrower’s ratio of total combined Indebtedness (which shall be
determined on a combined basis for the Parent Borrower, the Canadian Subsidiary
Borrower and their respective subsidiaries and shall include a good faith
estimate, certified by a Financial Officer, of any anticipated adjustments to
the Purchase Price pursuant to the terms of the Purchase Agreement that will be
funded with proceeds of Loans made pursuant to this Agreement or the Senior
Secured Notes, which estimated adjustment shall not exceed $15,000,000, provided
that, solely for purposes of determining compliance with this Section 4.01(u),
Indebtedness shall be deemed not to include those obligations specified in
clauses (f), (h) and (j) of the definition of the term “Indebtedness”) to Pro
Forma Combined EBITDA for the twelve-month period ended on October 2, 2005,
shall not exceed 5.00 to 1.00, and the Lenders shall have received a
certificate of a Financial Officer to that effect.

(v)  Insurance.  The Administrative Agent shall have received
evidence of insurance coverage in form, scope and substance reasonably
satisfactory to the Administrative Agent and otherwise in compliance with the
terms of Section 5.09.

(w)  Other Documents.  The Administrative Agent shall have received
such other documents as the Administrative Agent, the Issuing Bank, any Lender
or their respective counsel may have reasonably requested.

(x)  Ratings of Senior Secured
Notes.  The Senior Secured Notes
shall have been rated not less than five days prior to the Effective Date by
S&P and Moody’s.

The Administrative Agent
shall notify the Parent Borrower and the Lenders of the Effective Date, and
such notice shall be conclusive and binding. 
Notwithstanding the foregoing, the obligations of the Lenders to make Loans
and to accept and purchase B/As and of the Issuing Bank to issue Letters of
Credit hereunder shall not become effective unless each of the foregoing
conditions is satisfied (or waived pursuant to Section 9.02) at or prior to
5:00 p.m., New York City time, on January 31, 2006 (and, in the event such
conditions are not so satisfied or waived, the Commitments shall terminate at
such time).

SECTION 4.02.  Each Credit
Event.  (a)  The obligation of each Lender to make a Loan
on the occasion of any Borrowing and accept and purchase any B/A and of the
Issuing Bank to issue, amend, renew or extend any Letter of Credit, is subject
to the satisfaction of the following conditions:

(i) the
representations and warranties of each of the Loan Parties set forth in the Loan
Documents (other than, on the Effective Date, the representations and
warranties set forth in Sections 3.04(d) and 3.06(a)) that are qualified by
materiality shall be true and correct, and the representations and warranties
that are not so qualified shall be true and correct in all material respects,
in each case on and as of the date of such Borrowing, the date of the
acceptance and purchase of such B/A or the date of issuance, amendment, renewal
or extension of such Letter of Credit, as applicable (other than with respect
to

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any representation and warranty that
expressly relates to an earlier date, in which case such representation and
warranty shall be true and correct, or true and correct in all material
respects, as the case may be, as of such earlier date); and

(ii) at the
time of and immediately after giving effect to such Borrowing, the acceptance
and purchase of such B/A or the issuance, amendment, renewal or extension of
such Letter of Credit, as applicable, no Default shall have occurred and be
continuing.

Each Borrowing, each
acceptance and purchase of a B/A and each issuance, amendment, renewal or
extension of a Letter of Credit shall be deemed to constitute a representation
and warranty by the applicable Borrower on the date thereof as to the matters
specified in this Section 4.02(a).

(b)  Prior to (i) the making of
each Loan (excluding Swingline Loans), the Administrative Agent shall have
received a Borrowing Request meeting the requirements of Section 2.03, (ii) the
making of each Swingline Loan, the Swingline Lender shall have received a
notice meeting the requirements of Section 2.04(b), (iii) the acceptance and
purchase of each B/A, the Administrative Agent shall have received a written
request meeting the requirements of Section 2.06(c), (iv) the issuance,
amendment, renewal or extension of each Letter of Credit, the Administrative
Agent and the Issuing Bank shall have received a notice meeting the
requirements of Section 2.05(b), and (v) the issuance of each Letter of Credit,
the Issuing Bank shall have received a properly completed letter of credit
application on the Issuing Bank’s standard form.

ARTICLE V

Affirmative
Covenants

Until the Commitments have
expired or been terminated and the principal of and interest on each Loan,
amounts owing in respect of B/A Drawings and all fees, expenses and other
amounts payable under any Loan Document shall have been paid in full (other
than Unliquidated Obligations) and all Letters of Credit shall have expired or
terminated (or shall have been cash collateralized or supported by a letter of
credit, in each case reasonably satisfactory to the Administrative Agent) and
all L/C Disbursements and the aggregate face amount due in respect of
outstanding B/As shall have been reimbursed, the Loan Parties covenant and
agree, jointly and severally, with the Lenders that:

SECTION 5.01.  Financial
Statements; Borrowing Base and Other Information.  Holdings and the Parent Borrower will furnish
to the Administrative Agent and each Lender:

(a) within 95
days after the end of each fiscal year of the Parent Borrower, the audited
consolidated balance sheet and related statements of income, stockholders’
equity and cash flows for the Parent Borrower and its consolidated subsidiaries
as of the end of and for such year, setting forth in each case in comparative
form the figures for the previous fiscal year, all reported on by Crowe Chizek
and Company LLC or other independent public accountants of recognized national
standing (without a “going concern” or like qualification or exception and
without any qualification or exception as to the scope of such audit) to the
effect that such consolidated financial statements present fairly in all
material respects the financial condition and results of operations of the
Parent Borrower and its consolidated subsidiaries on a consolidated basis in
accordance with GAAP consistently applied;

(b) within
45 days after the end of each of the first three fiscal quarters of each
fiscal year of the Parent Borrower, the unaudited consolidated balance sheet
and related statements of income, stockholders’ equity and cash flows for each
of the Parent Borrower and its consolidated

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subsidiaries, on the one hand, and the
Canadian Subsidiary Borrower and its consolidated subsidiaries, on the other
hand, in each case as of the end of and for such fiscal quarter and the then
elapsed portion of the fiscal year, setting forth in each case in comparative
form the figures for the corresponding period or periods of (or, in the case of
the balance sheet, as of the end of) the previous fiscal year, all certified by
a Financial Officer as presenting fairly in all material respects the financial
condition and results of operations of the Parent Borrower and its consolidated
subsidiaries or the Canadian Subsidiary Borrower and its consolidated
subsidiaries, as the case may be, on a consolidated basis in accordance with
GAAP (or, in the case of the financial statements of the Canadian Subsidiary
Borrower and its consolidated subsidiaries, Canadian GAAP) consistently applied,
subject to normal year-end audit adjustments and the absence of footnotes;

(c) within 30
days after the end of each of the first two fiscal months of each fiscal
quarter of the Parent Borrower, the unaudited consolidated balance sheet and
related statements of income, stockholders’ equity and cash flows for each of
the Parent Borrower and its consolidated subsidiaries, on the one hand, and the
Canadian Subsidiary Borrower and its consolidated subsidiaries, on the other
hand, in each case as of the end of and for such fiscal month and the then
elapsed portion of the fiscal year, setting forth in each case in comparative
form the figures for the corresponding period or periods of (or, in the case of
the balance sheet, as of the end of) the previous fiscal year, all certified by
a Financial Officer as presenting fairly in all material respects the financial
condition and results of operations of the Parent Borrower and its consolidated
subsidiaries or the Canadian Subsidiary Borrower and its consolidated
subsidiaries;

(d)
concurrently with any delivery of financial statements under clause (a),
(b) or (c) above, a certificate of a Financial Officer in substantially
the form of Exhibit D (i) certifying as to whether a Default has
occurred and, if a Default has occurred, specifying the details thereof and any
action taken or proposed to be taken with respect thereto, (ii) setting
forth reasonably detailed calculations of the Fixed Charge Coverage Ratio as of
the last day of the last fiscal period covered by such financial statements
(but only in the event the Fixed Charge Coverage Ratio is then being tested
pursuant to Section 6.12) and (iii) stating whether any change in
GAAP or in the application thereof has occurred since the date of the audited
financial statements referred to in Section 3.04 and, if any such change
has occurred, specifying the effect of such change on the financial statements
accompanying such certificate;

(e) as soon as
available, but in any event not more than 30 days after the end of each fiscal
year of the Parent Borrower, a copy of the plan and forecast (including a
projected consolidated and consolidating balance sheet, income statement and
funds flow statement) of the Parent Borrower and the Subsidiaries on a
consolidated basis for each month of the upcoming fiscal year (the “Projections”)
in form reasonably satisfactory to the Administrative Agent and, promptly when
available, any significant revisions of such Projections;

(f) as soon as
available but in any event within 10 Business Days following the end of each
calendar month, and at such other times as may be required pursuant to
Section 2.22 or as may be requested by the Administrative Agent, as of the
period then ended, a Borrowing Base Certificate and supporting information in connection
therewith, together with any additional reports with respect to each Borrowing
Base as the Administrative Agent may reasonably request, provided that
the Parent Borrower may, at its election and upon notice to the Administrative
Agent, deliver the Borrowing Base Certificate required by this Section 5.01(f)
on or before the first Friday following the end of each calendar week; provided
further that, following such election, the Parent Borrower shall deliver
the Borrowing Base Certificate on or before the first

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Friday following the end of each calendar
week until the date that is (i) in the case of the first of such elections, 45
days, or (ii) in the case of any other subsequent such election, 180 days,
after the date on which the first Borrowing Base Certificate delivered pursuant
to such election is delivered to the Administrative Agent;

(g) promptly after the same become publicly available, copies of all
periodic and other reports, proxy statements and other materials filed by
Holdings, the Parent Borrower or any Subsidiary with the SEC, or any
Governmental Authority succeeding to any or all of the functions of the SEC, or
with any national securities exchange, or distributed by Holdings to its
shareholders generally, as the case may be; and

(h) promptly
following any written request therefor from the Administrative Agent (on its
own behalf or on behalf of any Lender), such other information regarding the
operations, business affairs and financial condition of Holdings, the Parent
Borrower or any Subsidiary, or compliance with the terms of this Agreement, as
the Administrative Agent (on its own behalf or on behalf of such Lender) may
reasonably request (including any information required to be provided by the
Parent Borrower and the Canadian Subsidiary Borrower pursuant to
Section 9.14).

SECTION 5.02.  Notices of
Material Events.  Holdings and the
Parent Borrower will furnish to the Administrative Agent (for distribution to
each Lender) prompt written notice of a Responsible Officer’s obtaining knowledge
of any of the following:

(a) the
occurrence of any Default;

(b) receipt of
any notice of any governmental investigation or any litigation or proceeding
commenced or threatened against any Loan Party that (i) seeks material damages,
(ii) seeks material injunctive relief, (iii) is asserted or instituted
against any Plan, any Canadian Pension Plan, any Canadian Benefits Plan or, in
each case, its fiduciaries or its assets, (iv) alleges criminal misconduct by
any Loan Party, (v) alleges the material violation of any law regarding,
or seeks material remedies in connection with, any Environmental Laws, (vi)
contests any material tax, fee, assessment or other governmental charge, or
(vii) involves any product recall;

(c) any Lien
(other than Liens permitted hereunder) or claim made or asserted against any of
the Collateral;

(d) any loss,
damage or destruction to the Collateral in the amount of $5,000,000 or more,
whether or not covered by insurance, or the commencement of any action or
proceeding for the taking of any material portion of or material interest in
the Collateral under power of eminent domain or by condemnation or similar
proceeding;

(e) any and
all default notices received under or with respect to any leased location or
public warehouse where Collateral is located in excess of $500,000 (which shall
be delivered within five Business Days after receipt thereof);

(f) the
occurrence of any ERISA Event or any fact or circumstance that gives rise to a
reasonable expectation that any ERISA Event will occur that, in either case,
alone or together with any other ERISA Events that have occurred or are
reasonably expected to occur, could reasonably be expected to result in
material liability of Holdings, the Parent Borrower and the Subsidiaries;

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(g) any
failure of either Borrower or any Subsidiary to make any required contribution
to any Canadian Pension Plan or the receipt of any notice from the funding
agent for any Canadian Pension Plan or from any Governmental Authority to such
effect that could reasonably be expected to result in a material liability to
Holdings, the Parent Borrower and the Subsidiaries; and

(h) any other
development that results in, or could reasonably be expected to result in, a
Material Adverse Effect.

Each notice delivered under
this Section 5.02 shall be accompanied by a statement of a Financial Officer or
other executive officer of the Parent Borrower setting forth the details of the
event or development requiring such notice and any action taken or proposed to
be taken with respect thereto.

SECTION 5.03. 
Existence.  Each Loan Party
will, and will cause each of its subsidiaries to, do or cause to be done all
things necessary (a) to preserve, renew and keep in full force and effect (i)
its legal existence and (ii) the rights, qualifications, privileges, permits,
franchises, governmental authorizations, intellectual property rights, licenses
and permits material to the conduct of its business, except, in the case of
this subclause (ii), to the extent that failure to do so could not reasonably
be expected to result in a Material Adverse Effect, and (b) maintain all
requisite authority to conduct its business in each jurisdiction in which its
business is conducted, except, in the case of this clause (b), to the extent
that the failure to do so could not reasonably be expected to result in a
Material Adverse Effect, provided that the foregoing shall not prohibit
any merger, consolidation, liquidation or dissolution permitted under
Section 6.03.

SECTION 5.04. 
Payment of Obligations. 
Each Loan Party will, and will cause each of its subsidiaries to, pay or
discharge all Material Indebtedness, all material Taxes and all other material
liabilities and obligations that have resulted, or may result, in a Lien being
imposed on any Loan Party’s assets (other than Liens expressly permitted by
Section 6.02), in each case, before the same shall become delinquent or in
default, except where (a) the validity or amount thereof is being contested in
good faith by appropriate proceedings, (b) such Loan Party or such subsidiary
has set aside on its books adequate reserves with respect thereto in accordance
with GAAP, (c) such contest effectively suspends collection of the contested
obligation and the enforcement of any Lien securing such obligation and (d) the
failure to make payment pending such contest could not reasonably be expected
to result in a Material Adverse Effect.

SECTION 5.05. 
Maintenance of Properties. 
Each Loan Party will, and will cause each of its subsidiaries to, keep
and maintain all property material to the conduct of its business in good
working order and condition, ordinary wear and tear, casualty and condemnation
excepted.

SECTION 5.06. 
Books and Records; Inspection Rights.  (a) 
Each Loan Party will, and will cause each of its subsidiaries to, (i)
keep proper books of record and account in which full, true and correct entries
are made of all dealings and transactions in relation to its business and
activities and (ii) permit any representatives designated by the Administrative
Agent or any Lender (including employees of the Administrative Agent, any
Lender or any consultants, accountants, lawyers and appraisers retained by the
Administrative Agent), upon reasonable prior notice but not more than two times
in any twelve-month period (unless an Event of Default has occurred and is
continuing), to visit and inspect its properties during normal business hours,
to examine and make extracts from its books and records (including
environmental assessment reports and Phase I or Phase II studies), and to
discuss its affairs, finances and condition with its officers and independent
accountants, all at such reasonable times and as often as reasonably requested,
provided that a representative of the Loan Parties shall have the right
to be present.  After the occurrence and
during the continuance of any Event of Default, each Loan Party shall

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provide the Administrative Agent and each Lender with access to its
suppliers. The Loan Parties acknowledge that the Administrative Agent, after
exercising its rights of inspection, may prepare and distribute to the Lenders
certain Reports pertaining to the Loan Parties’ assets for internal use by the
Administrative Agent and the Lenders.

(b) 
Each Loan Party will, and will cause each of its subsidiaries to, permit
any representatives designated by the Administrative Agent (including any
consultants, accountants, lawyers and appraisers retained by the Administrative
Agent) to conduct periodic collateral examinations and periodic collateral
appraisals of the Parent Borrower’s and the Canadian Subsidiary Borrower’s
computation of their respective Borrowing Base and the assets included in each
such Borrowing Base, all at such reasonable times and as often as reasonably
requested by the Administrative Agent in its sole discretion; provided, however,
that so long as no Event of Default has occurred and is continuing, the
Administrative Agent shall be limited to (i) three collateral examinations in
any twelve month period and (ii) if the Reference Availability (A) is equal to
or less than $40,000,000 at any time, two collateral appraisals in the twelve
month period commencing at such time or (B) is otherwise, one collateral
appraisal in any twelve month period. 
The Parent Borrower shall pay the reasonable fees and expenses (including
internally allocated fees and expenses of employees of the Administrative
Agent) of any such representatives retained by the Administrative Agent as to
which invoices have been furnished to conduct any such examination or
appraisal, including the reasonable fees and expenses associated with
collateral monitoring services performed by the IB ABL Portfolio Mgmt Group of
the Administrative Agent.  The Loan
Parties acknowledge that the Administrative Agent, after exercising its rights
with respect to collateral examinations and collateral appraisals, may prepare
and distribute (and, upon the request of any Lender, will distribute) to the
Lenders certain Reports pertaining to the Loan Parties’ assets for internal use
by the Administrative Agent and the Lenders. 
Each of the Parent Borrower and the Canadian Subsidiary Borrower also
agrees to modify or adjust the computation of its Borrowing Base (which may
include maintaining additional reserves or modifying the eligibility criteria
for the components of the Borrowing Base) to the extent required by the
Administrative Agent or the Required Lenders as a result of any such collateral
examination or collateral appraisal or otherwise.

 (c)  In
the event that historical accounting practices, systems or reserves relating to
the components of either Borrowing Base are modified in a manner that is
adverse to the Lenders in any material respect, the Parent Borrower and the
Canadian Subsidiary Borrower, as applicable, shall agree to maintain such
additional reserves (for purposes of computing the applicable Borrowing Base)
in respect of the components of the applicable Borrowing Base and make such
other adjustments to its parameters for including the components of the
applicable Borrowing Base as the Administrative Agent in its Permitted
Discretion shall require based upon such modifications.

SECTION 5.07. 
Compliance with Laws.  Each
Loan Party will, and will cause each of its subsidiaries to, comply with all
Requirements of Law applicable to it or its property, except where the failure
to do so, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect.

SECTION 5.08. 
Use of Proceeds.  The
proceeds of the Loans, together with the proceeds of the Equity Contributions
and the issuance of the Senior Secured Notes, shall be used (i) to pay the fees
and expenses in connection with the Transactions, (ii) to pay the Purchase
Price and (iii) for working capital and general corporate purposes of the
applicable Borrower (including any Permitted Acquisition), provided that
no more than $15,000,000 in Loans may be made in respect of the payment of net
working capital adjustments to the Purchase Price required by the Purchase
Agreement.  No part of the proceeds of
any Loan will be used, whether directly or indirectly, for any purpose that
entails a violation of any of the Regulations of the Board, including
Regulations T, U and X.  Letters of
Credit and B/As will be used only for general corporate purposes.

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SECTION 5.09. 
Insurance.  Each Loan Party
will, and will cause each of its subsidiaries to, maintain with financially
sound and reputable carriers (a) insurance in such amounts (with no greater
risk retention) with customary deductibles and against such risks (including
loss or damage by fire and loss in transit; theft, burglary, pilferage,
larceny, embezzlement, and other criminal activities; business interruption;
and general liability) and such other hazards, as is (i) customarily
maintained by companies of established repute engaged in the same or similar
businesses operating in the same or similar locations and (ii) considered
adequate by Holdings and the Parent Borrower and (b) all insurance as may be
required by law.  Each Loan Party shall,
and shall cause each of its subsidiaries to, (A) cause all such property and
property casualty insurance policies to be endorsed or otherwise amended to
include a lender’s loss payable endorsement, in form and substance reasonably
satisfactory to the Administrative Agent; (B) deliver original or certified
copies of all such policies or a certificate of an insurance broker to the
Administrative Agent; (C) cause each such policy to provide that it shall
not be canceled, modified or not renewed upon less than 30 days’ prior written
notice (or 10 days’ prior written notice in the case of any failure to pay any
premium due thereunder) thereof by the insurer to the Administrative Agent; and
(D) deliver to the Administrative Agent, prior to the cancelation, modification
or nonrenewal of any such policy of insurance, a copy of a renewal or
replacement policy (or other evidence of renewal of a policy previously
delivered to the Administrative Agent), or insurance certificate with respect
thereto, together with evidence reasonably satisfactory to the Administrative
Agent of payment of the premium therefor. 
The Parent Borrower will furnish to the Lenders, upon request of the
Administrative Agent, information in reasonable detail as to the insurance so
maintained.  Notwithstanding the
foregoing, the provisions of this Section 5.09 shall not apply to Caradon
Lebanon, Inc.

SECTION 5.10.  Depository
Banks.  The Parent Borrower and each
Subsidiary will maintain the Administrative Agent, Bank of America, N.A., Royal
Bank of Canada or such other bank or banks that are reasonably satisfactory to
the Administrative Agent, as its principal depository bank, including for the
maintenance of operating, administrative, cash management, collection activity,
and other deposit accounts for the conduct of its business.

SECTION 5.11.  Additional
Collateral; Further Assurances. 
(a)  To the extent permitted by
applicable law, each Borrower and each Subsidiary Loan Party shall cause each
of its subsidiaries formed or acquired after the date of this Agreement to
become a Loan Party by executing the Joinder Agreement set forth as Exhibit
E hereto (the “Joinder Agreement”). 
Upon execution and delivery thereof, each such Person (i) shall
automatically become a U.S. Loan Guarantor or a Foreign Loan Guarantor, as
applicable, hereunder and thereupon shall have all of the rights, benefits,
duties, and obligations in such capacity under the Loan Documents and (ii) will
grant, by executing the applicable Collateral Documents (or supplements
thereto), Liens to the Administrative Agent, for the benefit of the
Administrative Agent and the Lenders, in any property of such Loan Party that
constitutes Collateral, including any parcel of real property owned by such
Loan Party having a fair market value in excess of $500,000.

(b)  To the extent permitted by
applicable law, Holdings, the Parent Borrower and each Domestic Subsidiary Loan
Party will cause (i) 100% of the issued and outstanding Equity Interests of
each Domestic Subsidiary and (ii) 65% (or such greater percentage that, due to
a change in applicable law after the date hereof, (A) could not reasonably be
expected to cause the undistributed earnings of such Foreign Subsidiary as
determined for U.S. Federal income tax purposes to be treated as a deemed
dividend to such Foreign Subsidiary’s U.S. parent and (B) could not reasonably
be expected to cause any material adverse tax consequences) of the issued and
outstanding Equity Interests entitled to vote (within the meaning of Treas.
Reg. Section 1.956-2(c)(2)) and 100% of the issued and outstanding Equity
Interests not entitled to vote (within the meaning of Treas. Reg. Section
1.956-2(c)(2)) of each Foreign Subsidiary (including the Canadian Subsidiary
Borrower), in each case directly owned by the Parent Borrower or any such
Domestic Subsidiary Loan Party, to be subject at all times to a first priority,
perfected Lien (subject to Permitted Encumbrances) in favor of the
Administrative Agent to secure the

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Secured
Obligations pursuant to the terms and conditions of the applicable Collateral
Document or other security documents as the Administrative Agent shall
reasonably request.

(c)  To the extent permitted by
applicable law, Holdings, the Parent Borrower, the Canadian Subsidiary Borrower
and each Subsidiary Loan Party will cause 100% of the issued and outstanding
Equity Interests (other than director’s qualifying shares) of each Foreign
Subsidiary (including the Canadian Subsidiary Borrower and to the extent not
otherwise pledged pursuant to paragraph (b) of this Section 5.11) to be subject
at all times to a first priority, perfected Lien (subject to Permitted
Encumbrances) in favor of the Administrative Agent to secure the Canadian
Secured Obligations pursuant to the terms and conditions of the applicable
Collateral Document or other security documents as the Administrative Agent
shall reasonably request.

(d)  Without limiting the
foregoing and to the extent permitted by applicable law, each Loan Party will,
and will cause each of its subsidiaries to, execute and deliver, or cause to be
executed and delivered, to the Administrative Agent such documents, agreements
and instruments, and will take or cause to be taken such further actions
(including the filing and recording of financing statements, fixture filings,
mortgages, deeds of trust and other documents and such other actions or
deliveries of the type required by Section 4.01, as applicable), which may be
required by law or which the Administrative Agent may, from time to time,
reasonably request to carry out the terms and conditions of this Agreement and
the other Loan Documents and to ensure perfection and priority of the Liens
created or intended to be created by the Collateral Documents, all at the
expense of the Loan Parties.

(e)  If any material assets
(including any real property having a fair market value in excess of $500,000
or improvements thereto or any interest therein) are acquired by any Loan Party
after the Effective Date (other than assets constituting Collateral under the
Collateral Documents that become subject to the Lien created by the applicable
Collateral Document upon acquisition thereof), such Loan Party will notify the
Administrative Agent and the Lenders thereof, and, if requested by the
Administrative Agent or the Required Lenders and to the extent permitted by
applicable law, such Loan Party will cause such assets to be subjected to a
Lien securing the Secured Obligations (in the case of assets of Holdings, the
Parent Borrower or any Domestic Subsidiary Loan Party) or the Canadian Secured
Obligations (in the case of assets of the Canadian Subsidiary Borrower or any
Foreign Subsidiary Loan Party) and will take such actions as shall be necessary
or reasonably requested by the Administrative Agent to grant and perfect such
Liens (subject to any exceptions set forth in the Collateral Documents),
including actions described in paragraph (d) of this Section 5.11, all at the
expense of the Loan Parties.

(f)  Notwithstanding the
foregoing, the Administrative Agent shall not take a security interest in those
assets as to which the Administrative Agent shall determine, in its reasonable
discretion, that the cost of obtaining such security interest (including any
mortgage, stamp, intangibles or other tax) are excessive in relation to the
benefit to the Lenders of the security afforded thereby.

SECTION 5.12.  Purchase Price
Adjustment.  Promptly upon the
receipt of Purchase Price Adjustment Proceeds, if any, each Borrower shall make
a prepayment pursuant to Section 2.11(a) in an amount equal to 75% of the
Purchase Price Adjustment Proceeds so received by such Borrower (such amount,
the “Prepayment Amount”) or such lesser amount as may be necessary to
prepay in full all outstanding Borrowings and amounts owed in respect of
outstanding B/As, as the case may be, in which case the Borrowers shall be
permitted to use the remaining portion of the Prepayment Amount for general
corporate purposes, including any Permitted Acquisitions.  The remaining 25% of Purchase Price
Adjustment Proceeds, if any, may be used by the Borrowers in accordance with
Section 6.08(a)(x).

SECTION
5.13.  Post-Closing Matters.  On or prior to the date that
is 90 days after the Effective Date (or such later date as is
acceptable to the Administrative Agent in its sole discretion),

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(a) Indalex
U.K. Ltd. shall have (i) obtained all the necessary consents and approvals to
become a Foreign Subsidiary Loan Party hereunder and (ii) complied with Section
5.11 as a Foreign Subsidiary Loan Party or (b) the Equity Interests of AAG
shall be owned directly by the Parent Borrower, any Domestic Subsidiary Loan
Party or the Canadian Subsidiary Borrower.

ARTICLE VI

Negative Covenants

Until the Commitments have
expired or been terminated and the principal of and interest on each Loan,
amounts owing in respect of B/As and all fees, expenses and other amounts
payable under any Loan Document have been paid in full (other than Unliquidated
Obligations) and all Letters of Credit have expired or terminated (or shall
have been cash collateralized or supported by a letter of credit, in each case
reasonably satisfactory to the Administrative Agent)and all LC Disbursements
and the aggregate face amount due in respect of outstanding B/As shall have
been reimbursed, the Loan Parties covenant and agree, jointly and severally,
with the Lenders that:

SECTION 6.01. 
Indebtedness.  No Loan
Party will, nor will it permit any of its subsidiaries to, create, incur or
suffer to exist any Indebtedness, except:

(a) the Secured Obligations;

(b) Indebtedness (i) existing on the date hereof and set forth in Schedule 6.01
and (ii) of the Parent Borrower in respect of the Senior Secured Notes in
an aggregate principal amount not to exceed $280,000,000 and, in each case,
extensions, refinancings, renewals and replacements of, or exchange for, any
such Indebtedness in accordance with clause (f) of this Section 6.01, provided
that any such refinancing Indebtedness, if secured, is secured on a
second-priority basis only by assets of Holdings, the Parent Borrower and the
Domestic Subsidiary Loan Parties that constitute Collateral for the Secured
Obligations and shall be subject to the Intercreditor Agreement;

(c) Indebtedness of the Parent Borrower to any Subsidiary and of any
Subsidiary to the Parent Borrower or any other Subsidiary, provided that
(i) Indebtedness of any Subsidiary that is not a Loan Party to the Parent
Borrower or any Subsidiary Loan Party shall be subject to Section 6.04 and
(ii) Indebtedness of the Parent Borrower to any Subsidiary and Indebtedness of
any Subsidiary that is a Loan Party to any Subsidiary that is not a Loan Party
shall be subordinated to the Secured Obligations on terms reasonably
satisfactory to the Administrative Agent;

(d) Guarantees by (i) the Parent Borrower of Indebtedness of any
Subsidiary and by any Subsidiary of Indebtedness of the Parent Borrower or any
other Subsidiary, provided that (A) the Indebtedness so Guaranteed is
permitted by this Section 6.01 (other than clauses (b)(i), (f), (l) and
(q) of this Section 6.01), (B) Guarantees by the Parent Borrower or any
Subsidiary Loan Party of Indebtedness of any Subsidiary that is not a Loan
Party shall be subject to Section 6.04, (C) Guarantees permitted under
this clause (d) shall be subordinated to the Secured Obligations of the
applicable Subsidiary on the same terms as the Indebtedness so Guaranteed is
subordinated to the Secured Obligations and (D) the Senior Secured Notes shall
not be Guaranteed by any Subsidiary unless such Subsidiary is a Loan Party that
has Guaranteed the Secured Obligations, (ii) Holdings of the Senior Secured
Notes to the extent required by the Senior Secured Notes Documents and (iii)
any Subsidiary of Indebtedness of AAG or any of its subsidiaries to the extent
such Guarantees are required by the AAG Shareholders Agreement, provided
that the aggregate

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principal
amount of the Indebtedness Guaranteed pursuant to this clause (iii) shall not
exceed $12,000,000 at any time outstanding;

(e) Indebtedness of the Parent Borrower or any Subsidiary incurred to
finance the acquisition, construction or improvement of any fixed or capital
assets (whether or not constituting purchase money Indebtedness), including
Capital Lease Obligations (other than Capital Lease Obligations permitted under
Section 6.01(j)) and any Indebtedness assumed by the Parent Borrower or any
Subsidiary in connection with the acquisition of any such assets or secured by
a Lien on any such assets prior to the acquisition thereof, and extensions,
refinancings, renewals and replacements of any such Indebtedness in accordance
with clause (f) of this Section 6.01, provided that (i) such
Indebtedness is incurred prior to or within 90 days after such acquisition or
the completion of such construction or improvement and (ii) the aggregate
principal amount of Indebtedness permitted by this clause (e) (including
extensions, refinancings, renewals, replacements and exchanges) shall not
exceed $15,000,000 at any time outstanding;

(f) Indebtedness which represents an extension, refinancing, renewal or
replacement of, or exchange for, any of the Indebtedness described in clauses
(b), (e), (i), (l) and (q) of this Section 6.01, provided that (i) the
principal amount of such Indebtedness does not exceed the principal amount
(plus any accrued but unpaid interest, premium, fees and expenses) of the
Indebtedness being extended, refinanced, renewed or replaced, (ii) any Liens
securing such Indebtedness are (A) in the case of Indebtedness of any
Subsidiary that is not a Loan Party, not extended to any additional property of
any Loan Party and (B) in the case of Indebtedness of a Loan Party, limited to
all or part of the same property that secured or, pursuant to the written
agreement under which the original Lien arose, was required to secure the
original Indebtedness, (iii) no Loan Party that is not originally obligated
with respect to repayment of such Indebtedness of a Person that is not a Loan
Party is required to become obligated with respect thereto, (iv) such
extension, refinancing, renewal, replacement or exchange does not result in a
shortening of the average weighted maturity of the Indebtedness so extended,
refinanced, renewed, replaced or exchanged, (v) the terms of any such
extension, refinancing, renewal, replacement or exchange are not materially
less favorable to the obligor thereunder than the original terms of such
Indebtedness and (vi) if the Indebtedness that is extended, refinanced,
renewed, replaced or exchanged was subordinated in right of payment to the
Secured Obligations, then the terms and conditions of the extension,
refinancing, renewal, replacement or exchange Indebtedness must include
subordination terms and conditions that are at least as favorable to the
Administrative Agent and the Lenders as those that were applicable to the
extended, refinanced, renewed or replaced Indebtedness;

(g) Indebtedness owed to any Person (including obligations in respect
of letters of credit for the benefit of such Person) providing workers’
compensation, health, disability or other employee benefits or property,
casualty or liability insurance, pursuant to reimbursement or indemnification
obligations to such person, in each case incurred in the ordinary course of
business;

(h) Indebtedness of the Parent Borrower or any Subsidiary in respect of
performance bonds, bid bonds, customs bonds, appeal bonds, surety bonds,
performance and completion guarantees and similar obligations (other than in
respect of other Indebtedness), in each case provided in the ordinary course of
business;

(i)
Indebtedness of any Person that becomes a Subsidiary after the date hereof,
Indebtedness assumed in connection with a Permitted Acquisition (other than
Indebtedness permitted under Section 6.01(c)) and, in each case, extensions,
refinancings, renewals and

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replacements of, and exchanges for, any such
Indebtedness in accordance with clause (f) of this Section 6.01, provided
that (i) such Indebtedness exists at the time such Person becomes a Subsidiary
or at the time such Permitted Acquisition is consummated and is not created in
contemplation of or in connection with such Person becoming a Subsidiary or the
consummation of such Permitted Acquisition and (ii) the aggregate principal
amount of Indebtedness permitted by this clause (i) (including extensions,
refinancings, renewals, replacements, and exchanges) shall not exceed
$9,000,000 at any time outstanding;

(j) Capital
Lease Obligations (other than Capital Lease Obligations permitted under Section
6.01(e)) arising from sale and leaseback transactions otherwise permitted
pursuant to Section 6.06 in an aggregate principal amount not to exceed
$10,000,000 at any time outstanding;

(k) other
unsecured Indebtedness (including any Guarantee of Indebtedness not permitted
by clause (d)(iii) of this Section 6.01) in an aggregate principal amount not
exceeding $13,000,000 at any time outstanding;

(l)
subordinated Indebtedness of Holdings incurred to repurchase Equity Interest in
a transaction permitted by Section 6.08(a)(iii);

(m)
Indebtedness in respect of insurance premium financings;

(n)
Indebtedness of the Loan Parties in respect of Swap Agreements to the extent
such Swap Agreements are permitted hereunder;

(o) to the
extent constituting Indebtedness, obligations of the Loan Parties and their
subsidiaries under operating leases;

(p)
Indebtedness arising from the honoring by a bank or other financial institution
of a check, draft or similar instrument drawn against insufficient funds in the
ordinary course of business and other Indebtedness arising in connection with
banking services provided by any Person that is not a Lender or an Affiliate of
a Lender to the extent such banking services are provided in the ordinary
course of business; provided, however, that such Indebtedness is
extinguished within five Business Days of its incurrence;

(q) (i)
unsecured subordinated Indebtedness of Holdings to holders of Equity Interests
in Holdings, or to financial institutions acting at the direction of such
holders, in an aggregate principal amount of $25,000,000, provided that
(A) prior to the Maturity Date, no interest shall be paid in respect of such
Indebtedness (other than interest payable solely in shares of Qualified Equity
Interests or additional payment-in-kind Indebtedness), (B) such Indebtedness
does not require any scheduled payment of principal (including pursuant to a sinking
fund obligation) or mandatory redemption or redemption at the option of the
holders thereof (except for redemptions in respect of asset sales and changes
in control on terms that are market terms on the date of issuance) prior to the
date that is 180 days after the Maturity Date and (C) such Indebtedness shall
otherwise be on terms reasonably satisfactory to the Administrative Agent, and
(ii) extensions, refinancings, renewals and replacements of, or exchanges for,
any such Indebtedness in accordance with clause (f) of this Section 6.01;

(r)
Indebtedness of Foreign Subsidiaries (other than Canadian Subsidiaries) not to
exceed an aggregate principal amount of $2,000,000 outstanding at any time;

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(s)
Indebtedness arising from agreements of the Parent Borrower or any Subsidiary
to provide indemnification or similar obligations in connection with the
disposition of any business or assets of, or the acquisition of any business or
assets by, the Parent Borrower or such Subsidiary, as the case may be, to the extent
such disposition or acquisition is permitted hereby, provided that (i)
such Indebtedness is not reflected on the balance sheet of the Parent Borrower
or any Subsidiary (it being understood and agreed that contingent obligations
referred to in a footnote to the financial statements of the Parent Borrower or
any Subsidiary shall not be deemed to be reflected on such balance sheet for
purposes of this clause (i)) and (ii) the maximum assumable liability in
respect of all such Indebtedness shall not exceed the gross proceeds actually
received by the Parent Borrower or the applicable Subsidiary in connection with
the applicable dispositions or the fair market value of the business or assets
acquired by the Parent Borrower or the applicable Subsidiary in connection with
the applicable acquisition, as the case may be;

(t)
Indebtedness owed to the Sponsor or any Sponsor Affiliate in respect of unpaid
fees and expenses referenced in Section 6.09(f); and

(u)
subordinated Indebtedness of Holdings in respect of the Co-Investor Fronting
Loans, provided that such Indebtedness is repaid within 90 days of the
Effective Date in accordance with Section 6.08(b)(x),

provided
that the aggregate principal amount of Indebtedness incurred pursuant to
clauses (e), (i), (j) and (k) of this Section 6.01 shall not exceed (x) in the
event that Reference Availability as of the applicable date of incurrence is
less than or equal to $50,000,000, $25,000,000 as of such date or (y) in the
event that Reference Availability as of the applicable date of incurrence is
greater than $50,000,000, $35,000,000 as of such date; and provided  further
that for purposes of complying with this Section 6.01, Holdings, the Parent
Borrower and the Subsidiaries will be entitled to divide and classify an item of
Indebtedness in more than one of the types of Indebtedness described above.

SECTION 6.02.  Liens.  No Loan Party will, nor will it permit any of
its subsidiaries to, create, incur, assume or permit to exist any Lien on any
property or asset now owned or hereafter acquired by it, or assign or sell any
income or revenues (including accounts receivable) or rights in respect of any
thereof, except:

(a) Liens
created pursuant to any Loan Document;

(b) Permitted
Encumbrances;

(c) any Lien
on any property or asset of the Parent Borrower or any Subsidiary existing on
the date hereof and set forth in Schedule 6.02, provided
that (i) such Lien shall not apply to any other property or asset of the Parent
Borrower or Subsidiary and (ii) such Lien shall secure only those obligations
which it secures on the date hereof and extensions, refinancings, renewals and
replacements thereof that do not increase the outstanding principal amount
thereof (plus any accrued but unpaid interest and premium);

(d) Liens on
fixed or capital assets acquired, constructed or improved (including any such
assets made the subject of a Capital Lease Obligation incurred) by the Parent
Borrower or any Subsidiary, provided that (i) such Liens secure
Indebtedness permitted by Section 6.01(e), (ii) such Liens and the Indebtedness
secured thereby (other than any such Indebtedness that represents interest or
an extension, refinancing, renewal or replacement of the Indebtedness described
in Section 6.01(e)) are incurred prior to or within 90 days after such
acquisition or the completion of such construction or improvement, (iii) the
Indebtedness secured thereby does not

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exceed $15,000,000 at any time outstanding
and (iv) such Liens shall not apply to any other property or assets of the
Parent Borrower or Subsidiary;

(e) any Lien
existing on any property or asset prior to the acquisition thereof by the
Parent Borrower or any Subsidiary or existing on any property or asset of any
Person that becomes a Loan Party after the date hereof prior to the time such Person
becomes a Loan Party, provided that (i) such Lien is not created in
contemplation of or in connection with such acquisition or such Person becoming
a Loan Party, as the case may be, (ii) such Lien shall not apply to any
other property or assets of the Loan Party and (iii) such Lien shall secure
only those obligations which it secures on the date of such acquisition or the
date such Person becomes a Loan Party, as the case may be, and extensions,
refinancings, renewals and replacements thereof that do not increase the
outstanding principal amount thereof (plus any accrued but unpaid interest,
premium, fees and expenses);

(f) Liens of a
collecting bank arising in the ordinary course of business under Section 4-208
of the Uniform Commercial Code in effect in the relevant jurisdiction covering
only the items being collected upon;

(g) Liens
arising out of sale and leaseback transactions permitted by Section 6.06;

(h) Liens
granted by (i) a Subsidiary in favor of the Parent Borrower or another Loan
Party in respect of Indebtedness or other obligations owed by such Subsidiary
to the Parent Borrower or such Loan Party and (ii) a Subsidiary that is not a
Loan Party in favor of another Subsidiary that is not a Loan Party in respect
of Indebtedness or other obligations owed by the first such Subsidiary to the
second such Subsidiary;

(i) Liens not
otherwise permitted by this Section 6.02 to the extent that neither (A) the
aggregate outstanding principal amount of the obligations secured thereby nor
(B) the aggregate fair market value (determined as of the date such Lien is
incurred) of the assets subject thereto exceeds $1,000,000 at any time
outstanding;

(j) Liens (i)
created by sales contracts documenting unconsummated asset dispositions
permitted hereby and (ii) in favor of consignors, provided that such
Liens attach only to those assets that are the subject of the applicable sales
contract or that are consigned to the applicable Loan Party or Subsidiary;

(k) Liens
arising by operation of law or contract on insurance policies and the proceeds
thereof to secure premiums thereunder;

(l) Liens
consisting of the interest of (i) the lessor or sublessor under any lease or
sublease entered into by any Loan Party or any of its subsidiaries in its
ordinary course of business and (ii) the lessee or sublessee under any lease or
sublease granted to others by any Loan Party or any of its subsidiaries in its
ordinary course of business;

(m) Liens that
are rights of set-off or that arise solely by virtue of any statutory or common
law provision relating to deposit accounts in favor of banks and other
depositary institutions arising in the ordinary course of business;

(n) Liens (i)
representing the interest of the licensor or sublicensor under any license or
sublicense entered into by any Loan Party or any of its subsidiaries in its
ordinary course of business and (ii) arising from the granting of a license to
any Person in the ordinary course of

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business of a Loan Party or any of its
subsidiaries, provided that (A) such Liens attach only to those
assets that are the subject of the applicable license and (B) in the case of
subclause (ii), the granting of such license is permitted hereunder;

(o) Liens
attaching solely to cash earnest money deposits in connection with Investments
permitted under Section 6.04;

(p) Liens on
the assets of Foreign Subsidiaries (other than Canadian Subsidiaries) in an
aggregate amount not to exceed $2,000,000;

(q) the filing
of UCC financing statements solely as a precautionary measure in connection
with operating leases entered into by the Parent Borrower or any Subsidiary in
its ordinary course of business;

(r) Liens in
favor of the issuers of surety bonds issued for the account of the Parent
Borrower or any Subsidiary in its ordinary course of business;

(s) Liens
created in connection with (i) banking services provided to any Loan Party or
any subsidiary of a Loan Party by any Person that is not a Lender or an
Affiliate of a Lender or (ii) Swap Agreements permitted by Section 6.07 and
entered into with any Person that is not a Lender or an Affiliate of a Lender,
in each case entered into in the ordinary course of business;

(t) Liens on
cash collateral for letters of credit excluded from the definition of “Indebtedness”
pursuant to clause (i)(y) of such definition, provided that such cash
collateral does not exceed $2,000,000 in the aggregate at any time outstanding;
and

(u) Liens
created under the Senior Secured Notes Documents, provided that the
Intercreditor Agreement has been executed by the parties thereto and delivered
to the Administrative Agent.

SECTION 6.03.  Fundamental
Changes.  (a)  No Loan Party will, nor will it permit any of
its subsidiaries to, merge into or amalgamate or consolidate with any other
Person, or permit any other Person to merge into or amalgamate or consolidate
with it, or liquidate or dissolve, except that, if at the time thereof and
immediately after giving effect thereto no Event of Default shall have occurred
and be continuing (i) any Subsidiary (other than Canadian Subsidiary Borrower)
may merge into the Parent Borrower or the Canadian Subsidiary Borrower in a
transaction in which the Parent Borrower or the Canadian Subsidiary Borrower,
as applicable, is the surviving corporation, (ii) any Subsidiary may amalgamate
with the Canadian Subsidiary Borrower in a transaction in which the resulting
entity becomes, and assumes the rights and obligations hereunder of, the
Canadian Subsidiary Borrower, (iii) 6461948 Canada Inc. may amalgamate
with the Canadian Company (as contemplated by the definition of “Canadian
Subsidiary Borrower”), (iv) any Subsidiary (other than the Canadian
Subsidiary Borrower) may merge into or amalgamate or consolidate with any
Subsidiary Loan Party in a transaction in which the surviving or resulting
entity is a Loan Party, (v) any Subsidiary that is not a Loan Party may
liquidate, dissolve or merge into or amalgamate or consolidate with another
Subsidiary that is not a Loan Party if the Parent Borrower determines in good
faith that such liquidation, dissolution, merger, amalgamation or consolidation
is in the best interests of the Parent Borrower and is not materially
disadvantageous to the Lenders, and (vi) any Subsidiary that is permitted to be
sold in accordance with Section 6.05(o) may effect such sale by way of merger
into or amalgamation or consolidation with another Person or may otherwise be
liquidated or dissolved, provided that any such merger, amalgamation or
consolidation involving a Person that is not a wholly-owned Subsidiary
immediately prior to such merger, amalgamation or consolidation shall not be
permitted unless also permitted by Section 6.04.

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(b)  The Parent Borrower and the
Loan Parties will not engage to any material extent in any business other than
businesses of the type conducted by the Parent Borrower and the Loan Parties on
the Effective Date and businesses reasonably related, complementary or
ancillary thereto.

(c)  Holdings will not engage in
any business or activity other than the ownership of all the outstanding shares
of capital stock of the Parent Borrower and activities incidental thereto and
compliance with its obligations under the Loan Documents and the Senior Secured
Notes Documents and other activities specifically permitted hereby.  Holdings will not own or acquire any assets (other
than Equity Interests of the Parent Borrower, the cash proceeds of any
Restricted Payments permitted by Section 6.08 and other de minimis assets held
in its ordinary course of business) or incur any liabilities (other than
liabilities under the Loan Documents, liabilities expressly permitted by the
terms hereof (including the Indebtedness of Holdings permitted by Sections
6.01(l), (q) and (u)), unsecured Guarantees of the Senior Secured Notes to the
extent required by the Senior Secured Notes Documents, liabilities imposed by
law, including tax liabilities, and liabilities reasonably incurred in
connection with its maintenance of its existence, including payment of
directors).

SECTION 6.04.  Investments,
Loans, Advances, Guarantees and Acquisitions.  No Loan Party will, nor will it permit any of
its subsidiaries to, purchase, hold or acquire (including pursuant to any
merger with any Person that was not a Loan Party and a wholly-owned Subsidiary
prior to such merger) any Equity Interests in or evidences of Indebtedness or
other securities (including any option, warrant or other right to acquire any
of the foregoing) of, make or permit to exist any loans or advances to,
Guarantee any obligations of, or make or permit to exist any investment or any
other interest in, any other Person, or purchase or otherwise acquire (in one
transaction or a series of transactions) any assets of any other Person
constituting a business unit (whether through purchase of assets, merger or
otherwise), except:

(a) cash and
Permitted Investments;

(b)
investments in existence on the date of this Agreement and described in Schedule 6.04
and any extension, modification or renewal of any such investments, but only to
the extent not involving additional advances, contributions or other
investments of cash or other assets or other increases thereof  (other than as a result of the accrual or
accretion of interest or original issue discount or the issuance of pay-in-kind
securities, in each case, pursuant to the terms of such investment as in effect
on the date of hereof);

(c)
investments by Holdings in the Parent Borrower and by the Parent Borrower and
the Subsidiaries in Equity Interests in their respective subsidiaries, provided
that (i) any such Equity Interests held by a Loan Party shall be pledged
pursuant to the applicable Collateral Document (subject to the limitations
applicable to Equity Interests of a Foreign Subsidiary pledged to secure the
U.S. Secured Obligations referred to in Section 5.11 and to the extent
permitted by applicable law) and (ii) the aggregate amount of investments
by Loan Parties in Subsidiaries that are not Loan Parties (together with
outstanding intercompany loans permitted under clause (ii) to the proviso
to Section 6.04(d) and outstanding Guarantees permitted under the proviso
to Section 6.04(e)) shall not exceed $7,500,000 at any time outstanding
(in each case determined without regard to any write-downs or write-offs);

(d) loans or
advances made by the Parent Borrower to any Subsidiary and made by any Subsidiary
to the Parent Borrower or any other Subsidiary, provided that
(i) any such loans and advances made by a Loan Party shall be evidenced by
a promissory note pledged pursuant to the applicable Collateral Document and
(ii) the amount of such loans and advances made by Loan Parties to
Subsidiaries that are not Loan Parties (together with outstanding investments
permitted

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under clause (ii) to the proviso to
Section 6.04(c) and outstanding Guarantees permitted under the proviso to
Section 6.04(e)) shall not exceed $7,500,000 at any time outstanding (in
each case determined without regard to any write-downs or write-offs);

(e) Guarantees
of Indebtedness that are permitted by Section 6.01, provided
that the aggregate principal amount of Indebtedness of Subsidiaries that
are not Loan Parties that is Guaranteed by any Loan Party (together with
outstanding investments permitted under clause (ii) to the proviso to
Section 6.04(c) and outstanding intercompany loans permitted under
clause (ii) to the proviso to Section 6.04(d)) shall not exceed
$7,500,000 at any time outstanding (in each case determined without regard to
any write-downs or write-offs);

(f) loans or
advances made by a Loan Party to its (i) directors, officers and employees
in the ordinary course of business for travel and entertainment expenses,
relocation costs and similar purposes up to a maximum of $1,000,000 in the
aggregate at any one time outstanding and (ii) directors, officers and
employees to finance the purchase of Equity Interests in a Loan Party up to a
maximum of $1,000,000 in the aggregate at any one time outstanding (in each
case determined without regard to any write-downs or write-offs);

(g)
investments in the form of Swap Agreements permitted by Section 6.07;

(h)
investments of any Person existing at the time such Person becomes a Subsidiary
or consolidates, amalgamates or merges with or into the Parent Borrower or any
Subsidiary so long as such investments were not made in contemplation of such
Person becoming a Subsidiary or of such consolidation, amalgamation or merger;

(i)
investments received in connection with the disposition of any asset permitted
by Section 6.05;

(j)
investments received (i) in exchange for any other investment or account
receivable in connection with or as a result of a bankruptcy, workout,
reorganization or recapitalization of the issuer of such other investment or
account receivable, (ii) as a result of a foreclosure by the Parent Borrower or
any Subsidiary with respect to any secured investment or other transfer of
title with respect to any secured investment in default or (iii) in settlement
or compromise of legal claims and delinquent accounts receivable;

(k)
investments constituting deposits described in clause (c) or (d) of the
definition of the term “Permitted Encumbrances” or clause (o), (s) or (t) of
Section 6.02;

(l) extensions
of trade credit in the ordinary course of business;

(m)
(i) investments in AAG either directly or indirectly after the Effective
Date in an aggregate amount not in excess of $30,000,000 (plus an amount
equal to any returns of capital or sale proceeds actually received in cash in
respect of such investment (which amount shall not exceed the amount of such
investment valued at cost at the time such investment was made)) and
(ii) investments in any other joint venture or similar entity in an
aggregate amount not in excess of $5,000,000 (plus an amount equal to
any returns of capital or sale proceeds actually received in cash in respect of
such investment (which amount shall not exceed the amount of such investment
valued at cost at the time such investment was made)); provided, however,
that after giving effect to any investment made pursuant to this clause (m),
Reference Availability shall be not less than $35,000,000;

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(n) (i) the
Acquisition and (ii) Permitted Acquisitions, provided that, except to
the extent that Permitted Acquisitions are made with Excluded Proceeds, the
aggregate purchase price of all such Permitted Acquisitions, which shall be
deemed to include, with respect to any such Permitted Acquisition, (A) a good
faith estimate by the applicable Loan Party of the post-closing payment
adjustments, earn-outs and non-compete payments to be made in connection with
such Permitted Acquisition and (B) the principal amount of Indebtedness
that is assumed pursuant to Section 6.01(i), shall not exceed $175,000,000
in the aggregate plus, in each case (without duplication), an amount
equal to any returns of capital or sale proceeds actually received in cash in
respect of any such Permitted Acquisition (which amount shall not exceed the
purchase price paid (including the principal amount of Indebtedness assumed
pursuant to Section 6.01(i) in connection therewith and the amount
estimated to be paid in respect of post-closing payment adjustments, earn-outs
and non-compete payments) in respect of such Permitted Acquisition);

(o) other
investments, loans and advances by the Parent Borrower or any Subsidiary
(including investments in any minority-owned joint venture) in an aggregate
amount, as valued at cost at the time each such investment, loan or advance is
made and including all related commitments for future investments, loans or
advances (and the principal amount of any Indebtedness that is assumed or
otherwise incurred in connection with such investment, loan or advance), not
exceeding $5,000,000 in the aggregate for all such investments made or
committed to be made from and after the Effective Date plus an amount
equal to any returns of capital or sale proceeds actually received in cash in
respect of any such investments (which amount shall not exceed the amount of
such investment valued at cost at the time such investment was made);

(p) to the
extent permitted by the Senior Secured Notes Indenture, investments made with
the AAG Proceeds, provided that such investments are made within twelve
months after the receipt by the Parent Borrower or any Subsidiary of such AAG
Proceeds; and

(q) other
investments (other than any acquisition of all the outstanding Equity Interests
(other than directors’ qualifying shares) in, or substantially all the assets
of, or all or substantially all the assets constituting a division or line of
business of, a Person) made with Excluded Proceeds.

SECTION 6.05.  Asset Sales.  No Loan Party will, nor will it permit any of
its subsidiaries to, sell, transfer, lease or otherwise dispose of any asset,
including any Equity Interest owned by it, nor will the Parent Borrower permit
any Subsidiary to issue any additional Equity Interest in such Subsidiary
(other than to the Parent Borrower or another Subsidiary in compliance with
Section 6.04(c)), except:

(a) sales,
transfers and dispositions of (i) inventory, (ii) used, obsolete,
worn out or surplus equipment or property, (iii) any asset in a like-kind
exchange and (iv) Permitted Investments, in each case in the ordinary
course of business;

(b) sales,
transfers and dispositions to the Parent Borrower or any Subsidiary, provided
that any such sales, transfers or dispositions involving a Subsidiary that is
not a Loan Party shall be made in compliance with Section 6.09;

(c)
(i) sales, transfers and dispositions of accounts receivable in connection
with the compromise, settlement or collection thereof consistent with past
practice and (ii) the settlement or compromise of any legal claims;

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(d) sales,
transfers and dispositions of investments permitted by clauses (h), (i) or
(j) of Section 6.04 or another asset received as consideration for the
disposition of any asset permitted by this Section 6.05 (in each case, other
than Equity Interests in a Subsidiary, unless all Equity Interests in such
Subsidiary are sold);

(e) sale and
leaseback transactions permitted by Section 6.06;

(f) (i) leases
or (ii) licenses, in each case entered into the ordinary course of business, to
the extent that they do not materially interfere with the business of Holdings,
the Parent Borrower or any Subsidiary;

(g) licenses
or sublicenses of intellectual property in the ordinary course of business, to
the extent that they do not materially interfere with the business of Holdings,
the Parent Borrower or any Subsidiary;

(h)
dispositions resulting from any casualty or other insured damage to, or any
taking under power of eminent domain or by condemnation or similar proceeding
of, any property or asset of the Parent Borrower or any Subsidiary;

(i) any AAG
Dispositions;

(j) the
abandonment or other disposition of intellectual property that is, in the
reasonable good faith judgment of Holdings or the Parent Borrower, no longer
economically practicable or commercially desirable to maintain or useful in the
conduct of the business of the Parent Borrower and the Subsidiaries;

(k) the
disposition of any investments existing on the date hereof and set forth on Schedule
6.04;

(l)
dispositions of non-core assets acquired in connection with the Acquisition or
any Permitted Acquisition;

(m) the sale
of the Fostoria Plant;

(n) the
provision of samples and displays to consumers or prospective customers; and

(o) sales,
transfers and other dispositions of assets (other than Equity Interests in a
Subsidiary unless all Equity Interests in such Subsidiary (other than the
Canadian Subsidiary Borrower) are sold) that are not permitted by any other
clause of this Section 6.05, provided that the aggregate fair market
value of all assets sold, transferred or otherwise disposed of in reliance upon
this paragraph (o) shall not exceed $7,500,000 during any fiscal year of the
Parent Borrower,

provided that all
sales, transfers, leases and other dispositions permitted hereby (other than
those permitted by clauses (a)(ii), (b), (c), (d) (solely with respect to
dispositions of investments permitted by clause (i) or (j) of Section 6.04),
(f)(ii), (g), (h), (j) and (n) above) shall be made for fair value and (other
than those permitted by clauses (a)(ii), (a)(iii), (b) (unless the
disposition is by a Loan Party to a Subsidiary that is not a Loan Party), (c),
(d), (f)(ii), (g), (h), (i), (j) or (n) above) for at least 75% cash
consideration payable at the time of such sale, transfer or other disposition; provided
further that any consideration in the form of (i) Permitted Investments
or cash equivalents, in each case that are disposed of for cash consideration
within 30 Business Days after such sale, transfer or other disposition or

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(ii) accounts receivable
that are payable in cash, have payment terms customary to the Borrowers and are
received in the ordinary course of business shall be deemed to be cash
consideration in an amount equal to the amount of such cash consideration for
purposes of this proviso.

SECTION 6.06. 
Sale and Leaseback Transactions. 
No Loan Party will, nor will it permit any of its subsidiaries to, enter
into any arrangement, directly or indirectly, whereby it shall sell or transfer
any property, real or personal, used or useful in its business, whether now
owned or hereafter acquired, and thereafter rent or lease such property or
other property that it intends to use for substantially the same purpose or
purposes as the property sold or transferred, except for (a) any such sale of any
fixed or capital assets by the Parent Borrower or any Subsidiary that is made
for cash consideration in an amount not less than the fair value of such fixed
or capital asset and is consummated within 180 days after the Parent
Borrower or such Subsidiary acquires or completes the construction of such
fixed or capital asset and (b) any such sale of real property by the Parent
Borrower or any Subsidiary in an aggregate amount not to exceed $5,000,000 that
is made for cash consideration in an amount not less than the fair value of the
applicable real property, provided that, in the case of each of
clause (a) and (b), if such sale and leaseback results in a Capital Lease
Obligation, such Capital Lease Obligation is permitted by Section 6.01(e)
or Section 6.01(j) and any Liens made the subject of such Capital Lease
Obligation is permitted by Section 6.02(g).

SECTION 6.07. 
Swap Agreements.  No Loan
Party will, nor will it permit any of its subsidiaries to, enter into any Swap
Agreement, except (a) Swap Agreements entered into to hedge or mitigate
risks to which the Parent Borrower or any Subsidiary are subject or the
management of the liabilities of the Parent Borrower or any Subsidiary and not
for speculative purposes (other than those in respect of Equity Interests of
the Parent Borrower or any Subsidiary), and (b)  Swap Agreements entered
into in order to effectively cap, collar or exchange interest rates (from fixed
to floating rates, from one floating rate to another floating rate or
otherwise) with respect to any interest-bearing liability or investment of the
Parent Borrower or any Subsidiary.

SECTION 6.08. 
Restricted Payments; Certain Payments of Indebtedness.  (a)  No
Loan Party will, nor will it permit any of its subsidiaries to, declare or
make, or agree to pay or make, directly or indirectly, any Restricted Payment,
or incur any obligation (contingent or otherwise) to do so, except (i) the
Subsidiaries may declare and pay dividends ratably with respect to their Equity
Interests, (ii) Holdings may declare and pay dividends with respect to its
Equity Interests payable solely in shares of Qualified Equity Interests,
(iii) Holdings may make (and the Parent Borrower may declare and make
dividends or other distributions to Holdings in amounts necessary to permit
Holdings to make) Restricted Payments in an aggregate amount not to exceed
$3,000,000 in any fiscal year of the Parent Borrower to cancel, redeem, acquire
or repurchase shares of its common or preferred stock held by, or stock options
granted to, directors and employees of the Loan Parties in the event of death,
disability, termination of employment or retirement of any such director or
employee (it being understood that such Restricted Payment may be in the form
of Indebtedness subordinated to the Obligations in a manner reasonably
acceptable to the Administrative Agent), (iv) Holdings may exchange its
Qualified Equity Interests for, and in repayment or prepayment of, any
subordinated Indebtedness permitted by Section 6.01(q) or refinance such
subordinated Indebtedness with other subordinated Indebtedness to the extent
permitted by Section 6.01(q), (v) Holdings may and the Parent Borrower
may, or may make Restricted Payments to Holdings so that Holdings may, make
Restricted Payments, not exceeding $1,000,000 during any fiscal year, pursuant
to and in accordance with stock option plans or other benefit plans approved by
the Parent Borrower’s board of directors for management or employees of
Holdings, the Parent Borrower and the Subsidiaries, (vi) the Parent
Borrower may make Restricted Payments to Holdings at such times and in such
amounts (A) not exceeding $500,000 during any fiscal year (or $4,000,000 in any
fiscal year of the Parent Borrower following the completion of an IPO where
Holdings is the Public Company), as shall be necessary to permit Holdings to
discharge its general corporate and overhead (including franchise taxes

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and directors fees) expenses incurred in the ordinary course and other
permitted liabilities and (B) as shall be necessary to pay the Tax liabilities
of Holdings directly attributable to (or arising as a result of) the operations
of the Parent Borrower and the Subsidiaries; provided, however,
that (1) the amount of Restricted Payments pursuant to clause (B) of
this clause (vi) shall not exceed the amount that the Parent Borrower and
the Subsidiaries would be required to pay in respect of federal, state,
provincial and local taxes were the Parent Borrower and the Subsidiaries to pay
such taxes as stand-alone taxpayers and (2) all Restricted Payments
made to Holdings pursuant to this clause (vi) are used by Holdings for the
purposes specified herein within five Business Days after Holdings’ receipt
thereof, (vii) the Parent Borrower may make Restricted Payments to the extent
necessary to permit Holdings to make, and Holdings may make, payments of or on
account of (A) management, consulting and advisory fees, (B) transaction
fees and (C) reimbursement of reasonable out-of-pocket costs and expenses
incurred in connection with management, consulting and advisory services, in
each case to the Sponsor and the Sponsor Affiliates to the extent permitted by
Section 6.09(f), provided that, solely with respect to Restricted
Payments made pursuant to subclause (A) of this clause (vii), no Event of Default
shall have occurred and be continuing or would result therefrom,
(viii) concurrently with any issuance of Qualified Equity Interests,
Holdings may redeem, purchase or retire any Equity Interests of Holdings using
the proceeds of, or convert or exchange any Equity Interests of Holdings for,
such Qualified Equity Interests, (ix) to the extent permitted by the Senior
Secured Notes Indenture, the Loan Parties may make Restricted Payments from
(and within one year of the receipt of) AAG Proceeds, (x) the Loan Parties
may make Restricted Payments comprised of no more than 25% of the Purchase
Price Adjustment Proceeds, if any, (xi) Holdings may make repurchases of Equity
Interests of Holdings deemed to occur upon exercise of stock options or
warrants if such Equity Interests represent a portion of the exercise price of
such options or warrants pursuant to and in accordance with stock option plans
or other benefit plans approved by the Holdings’s or the Parent Borrower’s
board of directors for management or employees of Holdings, the Parent Borrower
and the Subsidiaries, (xii) Holdings may and the Parent Borrower may, or may
make Restricted Payments to Holdings so that Holdings may, make cash payments
in lieu of the issuance of fractional shares in connection with the exercise of
warrants, options or other securities convertible into or exchangeable for
Equity Interests of Holdings or the Parent Borrower, as the case may be, and
(xiii) the Parent Borrower may make to Holdings, and Holdings may make,
Restricted Payments using Excluded Proceeds.

(b)  No
Loan Party will, nor will it permit any of its subsidiaries to, make or agree
to pay or make, directly or indirectly, any payment or other distribution
(whether in cash, securities or other property) of or in respect of principal
of or interest on any Indebtedness, or any payment or other distribution
(whether in cash, securities or other property), including any sinking fund or
similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any Indebtedness, or any other
payment (including any payment under any Swap Agreement) that has a
substantially similar effect to any of the foregoing, except:

(i) payment of Indebtedness created under the Loan Documents;

(ii) payment of regularly scheduled interest and principal payments
(and fees and expenses payable) as, in the form of payment and when due in
respect of any Indebtedness, other than payments in respect of any Indebtedness
subordinated to the Secured Obligations to the extent prohibited by the
subordination provisions thereof;

(iii) refinancings of Indebtedness to the extent permitted by
Section 6.01 and payments described in clause (a)(iv) of this Section
6.08;

(iv) payment of secured Indebtedness that becomes due as a result of
the voluntary sale or transfer of the property or assets securing such
Indebtedness;

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(v) payments and prepayments of Indebtedness made with Excluded
Proceeds;

(vi) to the extent permitted under the Senior Secured Notes Indenture,
(A) the purchase of Senior Secured Notes from the AAG Proceeds, (B) the
purchase of Senior Secured Notes in an aggregate amount not to exceed
$25,000,000 if, in the case of this clause (B), the Reference Availability
immediately after giving effect to any such purchase shall not be less than
$75,000,000, and (C) the purchase of Senior Secured Notes pursuant to an Excess
Cash Flow Offer (as defined in the Senior Secured Notes Indenture), provided
that, in the case of clause (C), immediately before and after giving effect to
such purchase of Senior Secured Notes, the amount equal to (x) the lesser of
(1) the Commitments at such time and (2) the Total Borrowing Base at such time
shall exceed (y) the Revolving Exposure at such time by at least $75,000,000;

(vii) payment
of obligations under Swap Agreements permitted by Section 6.07 in respect of
(A) any mandatory or involuntary termination thereof and (B) any voluntary
termination thereof in the ordinary course of business;

(viii) payment
of Indebtedness permitted by Section 6.01 to the extent necessary to avoid any
Default created by currency fluctuations caused by application of Section 1.05;

(ix) payments
and prepayments of Indebtedness permitted by Section 6.01(c), (d), (e), (g),
(i), (j), (k), (l), (m), (o) or (r), provided that, immediately after
giving effect to any such payment or prepayment, Reference Availability shall
not be less than $35,000,000; and

(x) repayment of the
Co-Investor Fronting Loans using the proceeds of the Equity Contributions made
by the Fronting Co-Investors.

SECTION 6.09.  Transactions
with Affiliates.  No Loan Party will,
nor will it permit any of its subsidiaries to, sell, lease or otherwise
transfer any property or assets to, or purchase, lease or otherwise acquire any
property or assets from, or otherwise engage in any other transactions with,
any of its Affiliates, except (a) transactions that (i) are in the
ordinary course of business and (ii) are at prices and on terms and
conditions not less favorable to the Parent Borrower or such Subsidiary than
could be obtained on an arm’s-length basis from unrelated third parties,
(b) transactions between or among the Parent Borrower and any Subsidiary
Loan Party not involving any other Affiliate, (c) transactions between or
among the Parent Borrower and any Affiliate that is not a Loan Party so long as
such transactions (other than transactions permitted pursuant to Section
6.05(b)) are expressly permitted hereby, (d) the payment of reasonable fees to
directors of Holdings, the Parent Borrower or any Subsidiary who are not
employees of Holdings, the Parent Borrower or any Subsidiary, and compensation
and employee benefit arrangements paid to, and indemnities provided for the
benefit of, and employment severance arrangements entered into with, directors,
officers or employees of Holdings, the Parent Borrower or the Subsidiaries in
the ordinary course of business, (e) any issuances of securities or other
payments, awards or grants in cash, securities or otherwise pursuant to, or the
funding of, employment agreements, stock options and stock ownership plans
approved by the Parent Borrower’s board of directors, (f) (A) so long as
no Event of Default has occurred and is continuing, the payment of management,
consulting and advisory fees to the Sponsor or any Sponsor Affiliate in an
amount not to exceed, in any fiscal year, the greater of (i) $1,000,000 and
(ii) 2.00% of EBITDA (as such term is defined in the Management Services
Agreement) for the immediately preceding fiscal year, (B) the payment of
transaction fees in respect of the Transaction to the Sponsor or any Sponsor
Affiliate on the Effective Date in an amount not to exceed $4,650,000 and
otherwise as set forth in the Management Services Agreement, a copy of which
has been delivered to the Administrative Agent prior to the

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Effective
Date, and (C) the reimbursement of reasonable out-of-pocket costs and expenses
of the Sponsor or any Sponsor Affiliate incurred in connection with management,
consulting and advisory services, provided that, to the extent that any
of the fees and expenses referenced in this clause (f) are not permitted to be
paid at any time as a result of a failure to meet the conditions set forth in
this clause (f), such fees and expenses may be accrued and paid at such time
when such conditions are, and continue to be, satisfied, (g) any
contribution to the capital of Holdings by the Permitted Holders or any
purchase of Equity Interests of Holdings by the Permitted Holders, (h) any
Restricted Payment permitted under Section 6.08 and (i) any
transactions described on Schedule 6.09.

SECTION 6.10.  Restrictive
Agreements.  No Loan Party will, nor
will it permit any of its subsidiaries to, directly or indirectly, enter into,
incur or permit to exist any agreement or other arrangement that prohibits,
restricts or imposes any condition upon (a) the ability of such Loan Party or
any of its subsidiaries to create, incur or permit to exist any Lien upon any
of its property or assets, or (b) the ability of any Subsidiary to pay
dividends or other distributions with respect to any shares of its Equity
Interests or to make or repay loans or advances to the Parent Borrower or any
other Subsidiary or to Guarantee Indebtedness of the Parent Borrower or any
other Subsidiary, provided that (i) the foregoing shall not apply to
restrictions and conditions imposed by law, by any Loan Document or by any
Senior Secured Notes Document, (ii) the foregoing shall not apply to
restrictions and conditions existing on the date hereof identified on Schedule
6.10 (but shall apply to any extension or renewal of, or any amendment or
modification expanding the scope of, any such restriction or condition), (iii)
the foregoing shall not apply to customary restrictions and conditions
contained in agreements relating to the sale of a Subsidiary or any assets
pending such sale, provided that such restrictions and conditions apply
only to the Subsidiary or the assets that is or are to be sold and such sale is
permitted hereunder, (iv) clause (a) of the foregoing shall not apply to restrictions
or conditions imposed by any agreement relating to secured Indebtedness
permitted by this Agreement if such restrictions or conditions apply only to
the property or assets securing such Indebtedness, (v) clause (a) of the
foregoing shall not apply to customary provisions in leases, intellectual
property licenses and other contracts restricting the assignment thereof, (vi)
clause (a) of the foregoing shall not apply to restrictions or conditions
imposed by any agreement relating to any Indebtedness of a Subsidiary permitted
by Section 6.01(i), (vii) clauses (a) and (b) of the foregoing shall not apply
to any subordinated Indebtedness of Holdings or the Parent Borrower permitted
hereby and (viii) clauses (a) and (b) of the foregoing shall not apply to
restrictions on net worth or cash or other deposits imposed by customers,
suppliers or landlords under contracts entered into by the Parent Borrower or
any Subsidiary in its ordinary course of business.

SECTION 6.11.  Amendment of
Material Documents.  No Loan Party
will, nor will it permit any of its subsidiaries to, amend, modify, waive or
release any of its rights under (a) any agreement relating to any
Indebtedness permitted under Section 6.01(b), (b) its certificate of
incorporation, by-laws, operating, management or partnership agreement or other
organizational documents, (c) any Acquisition Document, (d) any Senior Secured
Notes Documents, (e) the Management Services Agreement or (f) any agreement in
respect of any joint venture to which such Loan Party or subsidiary, as
applicable, is a party, in each case, to the extent any such amendment,
modification or waiver could reasonably be expected to be materially adverse to
the Lenders.

SECTION 6.12.  Fixed Charge
Coverage Ratio.  If, at any time, (x)
Average Availability or (y) Availability for the preceding period of four
consecutive Business Days, in either case is less than $25,000,000, then the
Borrowers will not permit the Fixed Charge Coverage Ratio at such time,
determined for the period of four consecutive fiscal quarters most recently
ended at or prior to such time, to be less than (a) for the period beginning on
the Effective Date and ending on the one-year anniversary of the Effective
Date, 1.05 to 1.00 and (b) thereafter, 1.10 to 1.00.

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SECTION 6.13.  Certain Equity
Securities.  No Loan Party will, nor
will it permit any of its subsidiaries to, issue any preferred Equity Interests
or any Disqualified Equity Interests, except, in the case of Holdings,
preferred Equity Interests that are Qualified Equity Interests.

SECTION 6.14.  Changes in
Fiscal Periods.  The Parent Borrower
will neither (a) permit its fiscal year or the fiscal year of any Subsidiary to
end on a day other than December 31, nor (b) change its method of determining
fiscal quarters.

ARTICLE VII

Events of Default

If any of the following
events (“Events of Default”) shall occur:

(a) either
Borrower shall fail to pay any principal of any Loan or the face amount of any
B/A or any reimbursement obligation in respect of any L/C Disbursement when and
as the same shall become due and payable, whether at the due date thereof or at
a date fixed for prepayment thereof or otherwise;

(b) either
Borrower shall fail to pay any interest on any Loan or any fee or any other
amount (other than an amount referred to in clause (a) of this Article)
payable under this Agreement, when and as the same shall become due and
payable, and such failure shall continue unremedied for a period of five
Business Days;

(c) any
representation or warranty made or deemed made by or on behalf of any Loan
Party or any of its subsidiaries in or in connection with this Agreement or any
Loan Document or any amendment or modification thereof or waiver thereunder, or
in any report, certificate, financial statement or other document furnished
pursuant to or in connection with this Agreement or any Loan Document or any
amendment or modification thereof or waiver thereunder, shall prove to have
been incorrect in any material respect when made or deemed made;

(d) any Loan
Party shall fail to observe or perform any covenant, condition or agreement
contained in Section 5.02, 5.03 (with respect to a Loan Party’s existence)
or 5.08 or in Article VI;

(e) any Loan
Party shall fail to observe or perform any covenant, condition or agreement contained
in this Agreement (other than those specified in clause (a), (b) or (d) of
this Article), and such failure shall continue unremedied for a period of (i)
10 days after notice thereof from the Administrative Agent (which notice
will be given at the request of any Lender) if such breach relates to terms or
provisions of Section 5.01, 5.03 through 5.07, 5.09, 5.10 or 5.12 of this
Agreement or (ii) 30 days after notice thereof from the Administrative Agent
(which notice will be given at the request of any Lender) if such breach
relates to terms or provisions of any other Section of this Agreement;

(f) any Loan
Party or any of its subsidiaries shall fail to make any payment (whether
of principal or interest and regardless of amount) in respect of any Material
Indebtedness, when and as the same shall become due and payable;

(g) any event or condition occurs that results in any Material
Indebtedness becoming due prior to its scheduled maturity or that enables or
permits (with all applicable grace periods having expired) the holder or
holders of any Material Indebtedness or any trustee or agent on its or their
behalf to cause any Material Indebtedness to become due, or to require the
prepayment,

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repurchase, redemption or defeasance thereof,
prior to its scheduled maturity, provided that this clause (g)
shall not apply to secured Indebtedness that becomes due as a result of the
sale, transfer or other disposition (including as a result of a casualty or
condemnation event) of the property or assets securing such Indebtedness (to
the extent such sale, transfer or other disposition is not prohibited under
this Agreement);

(h) an
involuntary case, action or proceeding shall be commenced or an involuntary
petition shall be filed seeking (i) liquidation, reorganization or other
relief in respect of any Loan Party or any of its subsidiaries or its debts, or
of a substantial part of its assets, under any federal, state, provincial or
foreign bankruptcy, insolvency, receivership or similar law now or hereafter in
effect or (ii) the appointment of a receiver, interim receiver, receiver
manager, trustee, custodian, sequestrator, conservator or similar official for
any Loan Party or any of its subsidiaries or for a substantial part of its
assets, and, in any such case, such case, action, proceeding or petition shall
continue undismissed for 60 days or an order or decree approving or
ordering any of the foregoing shall be entered;

(i) any Loan
Party or any of its subsidiaries shall (i) voluntarily commence any case,
action or proceeding or file any petition seeking liquidation, reorganization
or other relief under any federal, state, provincial or foreign bankruptcy,
insolvency, receivership or similar law now or hereafter in effect,
(ii) consent to the institution of, or fail to contest in a timely and
appropriate manner, any case, action, proceeding or petition described in
clause (h) of this Article, (iii) apply for or consent to the appointment
of a receiver, interim receiver, receiver manager, trustee, custodian,
sequestrator, conservator or similar official for such Loan Party or any of its
subsidiaries or for a substantial part of its assets, (iv) file an answer
admitting the material allegations of a petition filed against it in any such
case, action or proceeding, (v) make a general assignment for the benefit
of creditors or (vi) take any action for the purpose of effecting any of
the foregoing;

(j) any Loan
Party or any of its subsidiaries shall become unable, admit in writing its
inability or fail generally to pay its debts as they become due;

(k) one or
more judgments for the payment of money in an aggregate amount in excess of
$7,500,000 (excluding amounts covered by funded indemnities or insurance as to
which the applicable insurance company is solvent and has acknowledged
liability in respect thereof) shall be rendered against any Loan Party, any of
its subsidiaries or any combination thereof, and the same shall remain
undischarged for a period of 45 consecutive days during which execution
shall not be effectively stayed, or any action shall be legally taken by a
judgment creditor to attach or levy upon any assets of any Loan Party or any of
its subsidiaries (to the extent such assets attached or levied upon have an
aggregate fair market value in excess of $100,000) to enforce any such judgment
or any Loan Party or any of its subsidiaries shall fail within 45 days to
discharge one or more non-monetary judgments or orders which, individually or
in the aggregate, could reasonably be expected to have a Material Adverse
Effect, which judgments or orders, in any such case, are not stayed on appeal
or otherwise being appropriately contested in good faith by proper proceedings
diligently pursued;

(l) an ERISA
Event shall have occurred that, in the opinion of the Required Lenders, when
taken together with all other ERISA Events that have occurred, could reasonably
be expected to result in a Material Adverse Effect;

(m) a Change
in Control shall occur;

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(n) the
occurrence of any “default”, as defined in any Loan Document (other than this
Agreement) or the breach of any of the terms or provisions of any Loan Document
(other than this Agreement), which default or breach continues beyond any
period of grace therein provided, and if no grace period is provided, such
period shall be 30 days after notice to the Parent Borrower;

(o) the Loan
Guaranty shall fail to remain in full force or effect (except as permitted by
the Loan Documents) or any action shall be taken to discontinue or to assert
the invalidity or unenforceability of the Loan Guaranty, or any Loan Guarantor
shall fail to comply with any of the terms or provisions of the Loan Guaranty
to which it is a party, or any Loan Guarantor shall deny that it has any
further liability under the Loan Guaranty to which it is a party, or shall give
notice to such effect;

(p) any
Collateral Document shall for any reason fail to create a valid and perfected
first priority security interest in any Collateral purported to be covered thereby,
except as permitted by the terms of any Collateral Document, or any Collateral
Document shall fail to remain in full force or effect or any action shall be
taken to discontinue or to assert the invalidity or unenforceability of any
Collateral Document, or any Loan Party shall fail to comply with any of the
terms or provisions of any Collateral Document; or

(q) any
material provision of any Loan Document for any reason ceases to be valid,
binding and enforceable in accordance with its terms (or any Loan Party shall
challenge the enforceability of any Loan Document or shall assert in writing,
or engage in any action or inaction based on any such assertion, that any
provision of any of the Loan Documents has ceased to be or otherwise is not
valid, binding and enforceable in accordance with its terms);

then, and in every such
event (other than an event with respect to Holdings or either Borrower
described in clause (h) or (i) of this Article), and at any time thereafter
during the continuance of such event, the Administrative Agent may, and at the
request of the Required Lenders shall, by notice to the Parent Borrower, take
either or both of the following actions, at the same or different
times:  (i) terminate the Commitments, and thereupon the
Commitments shall terminate immediately, and (ii) declare the Loans and
the B/A Drawings then outstanding to be due and payable in whole (or in part,
in which case any principal not so declared to be due and payable may
thereafter be declared to be due and payable), and thereupon the principal of
the Loans, and the full face amount of all outstanding B/As, so declared to be
due and payable, together with accrued interest thereon and all fees and other
obligations of each Borrower accrued hereunder, shall become due and payable
immediately, without presentment, demand, protest or other notice of any kind,
all of which are hereby waived by each Borrower; and in case of any event with
respect to Holdings or either Borrower described in clause (h) or (i) of this
Article, the Commitments shall automatically terminate and the principal of the
Loans and the full face amount of B/As, in each case then outstanding, together
with accrued interest thereon and all fees and other obligations of each
Borrower accrued hereunder, shall automatically become due and payable, without
presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrower.  Upon the
occurrence and the continuance of an Event of Default, the Administrative Agent
may, and at the request of the Required Lenders shall, exercise any rights and
remedies provided to the Administrative Agent under the Loan Documents or at
law or equity, including all remedies provided under the UCC and other
applicable personal property security laws in the relevant jurisdictions.

Solely
for purposes of determining whether a Default has occurred under paragraph (h),
(i), (j) or (k) of Article VII, any reference in any such paragraph to any
Subsidiary shall be deemed not to include any Subsidiary affected by any event
or circumstance referred to in such paragraph that did not, as of the last day
of the fiscal quarter of the Parent Borrower most-recently ended, have assets
with a value

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equal to or greater than
3.75% of consolidated total assets of the Parent Borrower and its consolidated
subsidiaries as of such date, based on the consolidated balance sheet of the
Parent Borrower and its consolidated subsidiaries as of such date, provided
that if it is necessary to exclude more than one Subsidiary from paragraph (h),
(i), (j) or (k) of Article VII pursuant to this paragraph in order to
avoid a Default, the aggregate value of the assets of all such excluded
Subsidiaries as of such last day may not exceed 7.50% of consolidated total
assets of the Parent Borrower and its consolidated subsidiaries as of such
date, based on the consolidated balance sheet of the Parent Borrower and its
consolidated subsidiaries as of such date.

ARTICLE VIII

The Administrative
Agent

Each of the Lenders and the
Issuing Bank hereby irrevocably appoints the Administrative Agent as its agent
and authorizes the Administrative Agent to take such actions on its behalf,
including execution of the other Loan Documents, and to exercise such powers as
are delegated to the Administrative Agent by the terms of the Loan Documents,
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
Issuing Bank, and no Loan Party shall have rights as a third party beneficiary
of any of such provisions.

The bank 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 such bank and its Affiliates may accept
deposits from, lend money to and generally engage in any kind of business with
the Loan Parties or any Subsidiary of a Loan Party or other Affiliate thereof
as if it were not the Administrative Agent hereunder.

The Administrative Agent
shall not have any duties or obligations except those expressly set forth in
the Loan Documents.  Without limiting the
generality of the foregoing, (a) the Administrative Agent shall not be
subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing, (b) the Administrative Agent shall
not have any duty to take any discretionary action or exercise any
discretionary powers, except discretionary rights and powers expressly
contemplated by the Loan Documents that the Administrative Agent is required to
exercise in writing as directed by the Required Lenders (or such other number
or percentage of the Lenders as shall be necessary or believed by the Administrative
Agent in good faith to be necessary under the circumstances as provided in
Section 2.05(j), Section 9.02 or Section 9.04(e)), and (c) except as expressly
set forth in the Loan Documents, the Administrative Agent shall not have any
duty to disclose, and shall not be liable for the failure to disclose, any
information relating to any Loan Party or any of its subsidiaries that is
communicated to or obtained by the bank serving as Administrative Agent or any
of its Affiliates in any capacity.  The
Administrative Agent shall not be liable for any action taken or not taken by
it 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 believed by the
Administrative Agent in good faith to be necessary under the circumstances as
provided in Section 2.05(j), Section 9.02 or Section 9.04(e)) or in the
absence of its own gross negligence or wilful misconduct.  The Administrative Agent shall be deemed not
to have knowledge of any Default unless and until written notice thereof is
given to the Administrative Agent by the Parent Borrower or a Lender, and 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 any Loan Document, (ii) the contents of any
certificate, report or other document delivered under or in connection with any
Loan Document, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth in any Loan
Document or the occurrence of any Default, (iv) the validity,
enforceability, effectiveness or genuineness of any Loan Document or any other

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agreement,
instrument or document, (v) the creation, perfection or priority of Liens on
the Collateral or the existence of the Collateral, or (vi) the
satisfaction of any condition set forth in Article IV or elsewhere in any
Loan Document, other than to confirm receipt of items expressly required to be
delivered to the 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 or 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 be made by the proper Person, and
shall not incur any liability for relying thereon.  The Administrative Agent may consult with
legal counsel (who may be counsel for either Borrower), 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.

The Administrative Agent may
perform any and all its duties and exercise its rights and powers 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 its duties and exercise its rights and powers
through their respective Related Parties. 
The exculpatory provisions of the preceding paragraphs 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.

Subject to the appointment
and acceptance of a successor Administrative Agent as provided in this
paragraph, the Administrative Agent may resign at any time by notifying the
Lenders, the Issuing Bank and the Borrowers. 
Upon any such resignation, the Required Lenders shall have the right, in
consultation with the Borrowers, to appoint a successor.  If no 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 and the Issuing Bank, appoint a successor Administrative Agent which
shall be a bank with an office in New York, New York or an Affiliate of any
such bank.  Upon the acceptance of its
appointment as Administrative Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and
duties of the retiring Administrative Agent, and the retiring Administrative
Agent shall be discharged from its duties and obligations under the Loan
Documents.  The fees payable by the
Borrowers to a successor Administrative Agent shall be the same as those payable
to its predecessor unless otherwise agreed between the Borrowers and such
successor.  After the Administrative
Agent’s resignation hereunder, the provisions of this Article and
Section 9.03 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.

Each Lender and the Issuing
Bank 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 Issuing Bank 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 related
agreement or any document furnished hereunder or thereunder.

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Each Lender hereby agrees
that (a) it has requested a copy of each Report prepared by or on behalf of the
Administrative Agent, (b) the Administrative Agent (i) makes no representation
or warranty, express or implied, as to the completeness or accuracy of any Report
or any of the information contained therein or any inaccuracy or omission
contained in or relating to a Report and (ii) shall not be liable for any
information contained in any Report, (c) the Reports are not comprehensive
audits or examinations, and that any Person performing any field examination
will inspect only specific information regarding the Loan Parties and will rely
significantly upon the Loan Parties’ books and records, as well as on
representations of the Loan Parties’ personnel and that the Administrative
Agent undertakes no obligation to update, correct or supplement the Reports,
(d) it will keep all Reports confidential and strictly for its internal use,
not share the Report with any Loan Party or any other Person except as
otherwise permitted pursuant to this Agreement, and (e) without limiting the
generality of any other indemnification provision contained in this
Agreement, it will pay and protect, and indemnify, defend, and hold the
Administrative Agent and any such other Person preparing a Report harmless from
and against, the claims, actions, proceedings, damages, costs, expenses, and
other amounts (including reasonable attorney fees) incurred by as the direct or
indirect result of any third parties who might obtain all or part of any Report
through the indemnifying Lender.

Notwithstanding anything
herein to the contrary, none of the Bookrunners or Arrangers listed on the
cover page hereof shall any powers, duties or responsibilities under any Loan
Document, except in its capacity, as applicable, as the Administrative Agent, a
Lender or the Issuing Bank hereunder.

ARTICLE IX

Miscellaneous

SECTION 9.01.  Notices.  (a) 
Except in the case of notices and other communications expressly
permitted to be given by telephone (and subject to paragraph (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 facsimile, as follows:

(i)
if to any Loan Party, to the Parent Borrower at:

Indalex
Holding Corp.

75
Tri-State International, Suite 450

Lincolnshire,
IL 60069

Attention:  Mike Alger

Facsimile No:  (847) 295-3851

with
a copy to:

Sun
Capital Partners, Inc.

5200
Town Center Circle, Suite 420

Boca
Raton, FL  33486

Attention:  Marc J. Leder, Roger S. Krouse

                  and C. Deryl Couch, Esq.

Facsimile No.:  (561) 394-0550

and

Kirkland
& Ellis LLP

200
E. Randolph Drive

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Chicago,
IL  60601

Attention:
Douglas C. Gessner and Michael D. Wright

Facsimile No.: (312)
861-2200

(ii) if to the
Administrative Agent, the Issuing Bank or the Swingline Lender, to JPMorgan
Chase Bank, N.A. at:

Loan and Agency
Services Group

1111 Fannin
Street, 10th Floor

Houston, TX 77002

Attention: Andrew
Perkins

Facsimile No: (713) 750-2223

(iii)
if to any other Lender, to it at its address or facsimile number set forth in
its Administrative Questionnaire.

All such notices and other
communications (i) sent by hand or overnight courier service, or mailed by
certified or registered mail, shall be deemed to have been given when received
or (ii) sent by facsimile shall be deemed to have been given when sent, provided
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.

(b)  Notices and other
communications to the Lenders and the Issuing Bank hereunder may be delivered
or furnished by electronic communications (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 pursuant to
Article II or to compliance and no Event of Default certificates delivered
pursuant to Section 5.01(d) unless otherwise agreed by the Administrative Agent
and the applicable Lender or the Issuing Bank, as the case may be.  The Administrative Agent or the Parent
Borrower (on behalf of the Loan Parties) 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. All such notices and other communications (i) 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 not given during the normal
business hours of the recipient, such notice or communication shall be deemed
to have been given at the opening of business on the next Business Day for the
recipient, and (ii) 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 (b)(i) of notification that such
notice or communication is available and identifying the website address
therefor.

(c)  Any party hereto may change
its address or facsimile number for notices and other communications hereunder
by notice to the other parties hereto.

SECTION 9.02.  Waivers;
Amendments.  (a)  No failure or delay by the Administrative
Agent, the Issuing Bank or any Lender in exercising any right or power
hereunder or under any other Loan Document shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power.  The rights and remedies
of the Administrative Agent, the Issuing Bank and the Lenders hereunder and
under any other Loan Document are cumulative and are not exclusive of any
rights or remedies that they would otherwise have.  No waiver of any provision of any Loan
Document or consent to any departure by any Loan Party

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therefrom
shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section 9.02, and then such waiver or consent shall
be effective only in the specific instance and for the purpose for which
given.  Without limiting the generality
of the foregoing, the making of a Loan, the acceptance and purchase of a B/A or
the issuance, amendment, renewal or extension of a Letter of Credit shall not
be construed as a waiver of any Default, regardless of whether the
Administrative Agent, any Lender or the Issuing Bank may have had notice or
knowledge of such Default at the time. 
No notice or demand on Holdings or either Borrower in any case shall
entitle Holdings or such Borrower, as the case may be, to any other or further
notice or demand in similar or other circumstances.

(b)  Except as provided in
Section 2.21 in connection with any Commitment Increase Amendment, neither this
Agreement nor any other Loan Document nor any provision hereof or thereof may
be waived, amended or modified except in the case of this Agreement, pursuant
to an agreement or agreements in writing entered into by the Parent Borrower
and the Required Lenders or, in the case of any other Loan Document, pursuant
to an agreement or agreements in writing entered into by the Administrative
Agent and the Loan Party or Loan Parties that are parties thereto, in each case
with the consent of the Required Lenders, provided that no such
agreement shall (i) increase the Commitment of any Lender without the written
consent of such Lender (it being understood that a waiver of any condition
precedent in Section 4.01 or 4.02 or the waiver of a Default or an Event of Default
shall not constitute an increase of any Commitment of a Lender for purposes of
this clause (i)), (ii) reduce or forgive the principal amount of any Loan, B/A
or LC Disbursement or reduce the rate of interest thereon, or reduce or forgive
any interest or fees payable hereunder, without the written consent of each
Lender affected thereby (it being understood that neither (A) any amendment to
this Agreement that has the effect of increasing Availability or Reference
Availability and that is approved by the Required Lenders (or, if applicable,
the percentage of Lenders required under clause (v) or (ix) of this Section
9.02(b)) nor (B) any waiver or forgiveness of a Default or Event of Default
hereunder, shall constitute a reduction of the rate of interest or Commitment
Fees for purposes of this clause (ii)), (iii) postpone the maturity of any Loan
or any scheduled date of payment of the principal amount of any Loan, B/A or LC
Disbursement, or any date for the payment of any interest, fees or other Obligations
payable hereunder, or reduce the amount of, waive or excuse any such payment,
or postpone the scheduled date of expiration of any Commitment, without the
written consent of each Lender affected thereby, (iv) change Section 2.18(b) or
(d) in a manner that would alter the manner in which payments are shared,
without the written consent of each Lender, (v) increase the advance rates set
forth in the definition of either Borrowing Base, add new categories of
eligible assets or eliminate Reserves that were imposed by the Required Lenders
or by the Administrative Agent at the request of the Required Lenders, in each
case in respect of either Borrowing Base, without the written consent of
Lenders having Revolving Exposure and unused Revolving Commitments representing
more than 66 2/3% of the sum of the total Revolving Exposure and Revolving
Commitments at such time (it being understood and agreed that the rescission of
a Reserve by the Administrative Agent acting in its Permitted Discretion (as
opposed to at the request of the Required Lenders) shall not require the
consent of the Lenders under this clause (v)), (vi) change any of the
provisions of this Section 9.02 or the definition of “Required Lenders” or any
other provision of any Loan Document specifying the number or percentage of
Lenders required to waive, amend or modify any rights thereunder or make any
determination or grant any consent thereunder, without the written consent of
each Lender (it being understood that, with the consent of the Required Lenders,
additional extensions of credit pursuant to this Agreement may be included in
the determination of the Required Lenders on substantially the same basis as
the Revolving Commitments on the date hereof), (vii) release any Loan Guarantor
from its obligation under its Loan Guaranty or limit its liability with respect
to such Loan Guaranty (except as otherwise expressly permitted herein or in the
other Loan Documents), without the written consent of each Lender directly and
adversely affected thereby, (viii) except as expressly provided in this
Section 9.02 or in any Collateral Document, release all or substantially all
the Collateral, without the written consent of each Lender, (ix) eliminate
the ineligibility of any portion of the assets comprising either Borrower Base
(including the Availability Block), without the written consent of Lenders
having

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Revolving
Exposure and unused Revolving Commitments representing more than 66 2/3% of the
sum of the total Revolving Exposure and Revolving Commitments at such time or
(x) modify the protection afforded an SPV pursuant to the provisions of Section
9.04(e) without the written consent of such SPV; provided  further
that (A) no such agreement shall amend, modify or otherwise affect the rights
or duties of the Administrative Agent, the Issuing Bank or the Swingline Lender
hereunder without the prior written consent of the Administrative Agent, the
Issuing Bank or the Swingline Lender, as the case may be, and (B) if the terms
of any waiver, amendment or modification of any Loan Document provide that any
Tranche of Loans (together with all accrued interest thereon and all accrued
fees payable with respect to the Commitments of such Tranche) will be repaid or
paid in full, and the Commitments of such Tranche (if any) terminated, as a
condition to the effectiveness of such waiver, amendment or modification, then
so long as the Loans of such Tranche (together with such accrued interest and
fees) are in fact repaid or paid and such Commitments are in fact terminated,
in each case prior to or simultaneously with the effectiveness of such
amendment, then such Loans and Commitments shall not be included in the
determination of the Required Lenders with respect to such amendment.  The Administrative Agent may also amend the
Commitment Schedule to reflect assignments entered into pursuant to Section
9.04.

(c)  The Lenders hereby
irrevocably authorize the Administrative Agent, at its option and in its sole
discretion, to release any Liens granted to the Administrative Agent by the Loan
Parties on any Collateral (i) upon the termination of the all Commitments,
payment and satisfaction in full in cash of all Secured Obligations (other than
Unliquidated Obligations), and the cash collateralization (or support with a
letter of credit reasonably satisfactory to the Administrative Agent) of all
Unliquidated Obligations in a manner reasonably satisfactory to each affected
Lender, (ii) constituting property being sold or disposed of if the Loan
Party disposing of such property certifies to the Administrative Agent that the
sale or disposition is made in compliance with the terms of this Agreement (and
the Administrative Agent may rely conclusively on any such certificate, without
further inquiry), (iii) constituting property leased to a Loan Party under a
lease which has expired or been terminated in a transaction permitted under
this Agreement, or (iv) as required to effect any sale or other disposition of
such Collateral in connection with any exercise of remedies of the
Administrative Agent and the Lenders pursuant to Article VII.  Any such release shall not in any manner
discharge, affect, or impair the Obligations or any Liens (other than those
expressly being released) upon (or obligations of the Loan Parties in respect
of) all interests retained by the Loan Parties, including the proceeds of any
sale, all of which shall continue to constitute part of the Collateral.  The Liens on property described in
clauses (c)(i) and (c)(ii) of this paragraph shall be deemed to be
released with no action on the part of any Person upon the sale, transfer or
other disposition thereof.

(d)  In connection with any
proposed amendment, modification, waiver or termination (a “Proposed Change”)
requiring the consent of all Lenders or all affected Lenders, if the consent of
the Required Lenders to such Proposed Change is obtained, but the consent to
such Proposed Change of other Lenders whose consent is required is not obtained
(any such Lender whose consent is not obtained as described in paragraph (b) of
this Section being referred to as a “Non-Consenting Lender”), then, so
long as the Lender that is acting as Administrative Agent is not a
Non-Consenting Lender, the Parent Borrower may, at its sole expense and effort,
upon notice to such Non-Consenting Lender and the Administrative Agent, require
such Non-Consenting Lender to assign and delegate, without recourse (in
accordance with and subject to the restrictions contained in Section 9.04), all
its interests, rights and obligations under this Agreement to an assignee that
shall assume such obligations (which assignee may be another Lender, if a
Lender accepts such assignment), provided that (a) the Parent Borrower
shall have received the prior written consent of the Administrative Agent, the
Issuing Bank and the Swingline Lender, which consent shall not unreasonably be
withheld, (b) such Non-Consenting Lender shall have received payment of an
amount equal to the outstanding principal of its Loans and participations in
L/C Disbursements and Swingline Loans and all amounts due to such Lender in
respect of outstanding B/As, accrued interest thereon, accrued fees and all
other amounts payable to it hereunder from the assignee (to the extent of

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such
outstanding principal and accrued interest and fees) or the Borrowers (in the
case of all other amounts) and (c) the Parent Borrower or such assignee shall
have paid to the Administrative Agent the processing and recordation fee
specified in Section 9.04(b).

(e)  In the event that S&P,
Moody’s and Thompson’s BankWatch (or InsuranceWatch Ratings Service, in the
case of Lenders that are insurance companies (or Best’s Insurance Reports, if
such insurance company is not rated by Insurance Watch Ratings Service)) shall,
after the date that any Lender becomes a Lender, downgrade the long-term
certificate of deposit ratings of such Lender, and the resulting ratings shall
be below BBB-, Baa3 and C (or BB, in the case of a Lender that is an insurance
company (or B, in the case of an insurance company not rated by InsuranceWatch
Ratings Service)), then the Issuing Bank shall have the right, but not the
obligation, at its own expense, upon notice to such Lender and the
Administrative Agent and following consultation with the Parent Borrower, to
replace such Lender with an assignee (in accordance with and subject to the
restrictions contained in Section 9.04(b)), and such Lender hereby agrees to
transfer and assign without recourse (in accordance with and subject to the
restrictions contained in Section 9.04(b)) all its interests, rights and
obligations under this Agreement to such assignee; provided, however,
that (i) no such assignment shall conflict with any law, rule and
regulation or order of any Governmental Authority, (ii) such Lender shall
have received payment of an amount equal to the outstanding principal of its
Loans and participations in L/C Disbursements and Swingline Loans and all
amounts due to such Lender in respect of outstanding B/As, 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 Borrowers (in the case of all other amounts) and (iii) the
Parent Borrower or such assignee shall have paid to the Administrative Agent
the processing and recordation fee specified in Section 9.04(b).

SECTION 9.03.  Expenses;
Indemnity; Damage Waiver.  (a)  The Borrowers, as applicable, 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 and distribution (including, without limitation, via the
internet or through a service such as Intralinks) of the credit facilities
provided for herein, the preparation and administration of the Loan Documents
or any amendments, modifications or waivers of the provisions of the Loan
Documents (whether or not the transactions contemplated hereby or thereby shall
be consummated), (ii) all reasonable out-of-pocket expenses incurred by the
Issuing Bank 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, the Issuing Bank
or any Lender, including the reasonable fees, charges and disbursements of one
counsel for the Administrative Agent, the Issuing Bank and the Lenders (in
addition to one local counsel in each relevant jurisdiction, including Canadian
local counsel), in connection with the enforcement, collection or protection of
its rights in connection with the Loan Documents, including its rights under
this Section 9.03, or in connection with the Loans made, B/As accepted and
purchased 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, B/As or Letters of
Credit.  Expenses being reimbursed by the
Borrowers under this Section 9.03 include, without limiting the generality of
the foregoing, reasonable costs and expenses incurred in connection with:

(i) appraisals
(limited to specified per diem costs and expenses);

(ii) field
examinations and the preparation of Reports based on the fees charged by a
third party retained by the Administrative Agent or the internally allocated
fees for each Person employed by the Administrative Agent with respect to each
field examination (limited to specified per diem costs and expenses);

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(iii) lien and
title searches and title insurance;

(iv) taxes,
fees and other charges for recording the Mortgages, filing financing statements
and continuations, and other actions to perfect, protect, and continue the
Administrative Agent’s Liens;

(v) sums paid
or incurred to take any action required of any Loan Party under the Loan
Documents that such Loan Party fails to pay or take; and

(vi)
forwarding loan proceeds, collecting checks and other items of payment, and
establishing and maintaining the accounts and lock boxes, and costs and
expenses of preserving and protecting the Collateral.

All of the foregoing costs
and expenses may be charged to the Parent Borrower as Revolving Loans or to
another deposit account, all as described in Section 2.18(c).  The above list shall not be construed to
negate any specific limitation on the Loan Parties’ obligations to reimburse
items hereunder.

(b) 
The Borrowers, as applicable, shall indemnify the Administrative Agent,
the Issuing Bank and each Lender, 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,
penalties, liabilities and related expenses, including the reasonable fees,
charges and disbursements of one counsel for the Indemnitees (in addition to
one local counsel in each relevant jurisdiction, including Canadian local
counsel), except in the case where there is a divergent or conflicting interest
between the Administrative Agent and the Lenders, in which case there shall be
one separate counsel for the Administrative Agent, on the one hand, and the
Lenders as a group, on the other hand, incurred by or asserted against any
Indemnitee arising out of, in connection with, or as a result of (i) the
execution or delivery of any Loan Document or any agreement or instrument
contemplated thereby, the performance by the parties to the Loan Documents of
their respective obligations thereunder or the consummation of the Transactions
or any other transactions contemplated thereby, (ii) any Loan, B/A or
Letter of Credit or the use of the proceeds therefrom (including any refusal by
the Issuing Bank 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, but subject to Section 2.05(f)),
(iii) any actual or alleged presence or Release of Hazardous Materials on
or from any property currently or formerly owned or operated by Holdings, the
Parent Borrower or any Subsidiary, or any Environmental Liability related in
any way to Holdings, the Parent Borrower or any Subsidiary, or (iv) any actual
or prospective claim, litigation, investigation or proceeding relating to any
of the foregoing, whether based on contract, tort or any other theory, whether
brought by a third party or by Holdings, the Parent Borrower or any Subsidiary
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, penalties, liabilities or related expenses
are determined by a court of competent jurisdiction by final judgment to have
resulted from the gross negligence, bad faith or wilful misconduct of such
Indemnitee or any of its Related Parties.

(c)  To
the extent that either Borrower fails to pay any amount required to be paid by
it to the Administrative Agent, the Issuing Bank or the Swingline Lender under
paragraph (a) or (b) of this Section 9.03, each Lender severally agrees to pay
to the Administrative Agent, the Issuing Bank or the Swingline Lender, 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, penalty, liability or related expense, as the
case may be, was incurred by or asserted against the Administrative Agent, the
Issuing Bank or the Swingline Lender in its capacity as such.

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(d)  To
the extent permitted by applicable law, no Loan Party shall assert, and each
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, any
Loan Document or any agreement or instrument contemplated hereby, the
Transactions, any Loan, B/A or Letter of Credit or the use of the proceeds
thereof.

(e) 
All amounts due under this Section 9.03 shall be payable not later than
five Business Days after written demand therefor.

SECTION 9.04. 
Successors and Assigns. 
(a)  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 (including any
Affiliate of the Issuing Bank that issues any Letter of Credit), except that
(i) except in connection with the amalgamation contemplated by Section
6.03(a)(iii), neither Borrower may assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of each
Lender (and any attempted assignment or transfer by either Borrower without
such consent shall be null and void) and (ii) no Lender may assign or otherwise
transfer its rights or obligations hereunder except in accordance with this
Section 9.04.  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
(including any Affiliate of the Issuing Bank that issues any Letter of Credit),
Participants (to the extent provided in paragraph (c) of this Section 9.04)
and, to the extent expressly contemplated hereby, the Related Parties of each
of the Administrative Agent, the Issuing Bank and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

(b) 
(i)  Subject to the conditions set
forth in paragraph (b)(ii) below, any Lender may assign to one or more
assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Revolving Commitment and the Loans at the
time owing to it) with the prior written consent (such consent not to be
unreasonably withheld or delayed or withheld on grounds that an assignee is not
a Canadian Resident unless, in the case of Loans to, or other Canadian
Obligations of, the Canadian Subsidiary Borrower or any Canadian Subsidiary
Loan Party, the Canadian Subsidiary Borrower or applicable Canadian Subsidiary
Loan Party would be obligated to pay additional amounts to such assignee under
Section 2.17(a) immediately after the assignment) of:

(A) the Parent Borrower, provided that no consent of the Parent
Borrower shall be required for an assignment to a Lender, an Affiliate of a
Lender, an Approved Fund or, if an Event of Default has occurred and is
continuing, any other assignee;

(B) the Administrative Agent; and

(C) the Issuing Bank.

(ii) Assignments shall be subject to the following additional
conditions:

(A) except in the case of an assignment to a Lender or an Affiliate of
a Lender or an assignment of the entire remaining amount of the assigning
Lender’s Revolving Commitment or Loans of any Tranche, the amount of the
Revolving Commitment or 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) shall not
be less than $5,000,000 unless each of the Parent Borrower and the
Administrative Agent otherwise consent, provided that no such consent of
the Parent Borrower shall be required if an Event of Default has occurred and
is continuing;

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(B) 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;

(C) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with a processing
and recordation fee of $3,500, provided that assignments made pursuant
to Section 2.19(b) or 9.02(d) shall not require the signature of the
assigning Lender to become effective;

(D) the assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire and any tax forms required
by Section 2.17(e); and

(E) any assignment of all or a portion of a Lender’s Revolving
Commitment shall be accompanied by a simultaneous assignment of a pro rata
portion of such Lender’s Canadian Revolving Sub-Commitment.

For the purposes of this
paragraph (b) of this Section 9.04, the term “Approved Fund” has the
following meaning:

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

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

(iii) Subject
to acceptance and recording thereof pursuant to paragraph (b)(iv) of this
Section 9.04, from and after the effective date specified in each Assignment
and Assumption the assignee thereunder shall be a party hereto 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 2.15, 2.16, 2.17 and 9.03).  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
Section 9.04 shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with
paragraph (c) of this Section 9.04.

(iv) The
Administrative Agent, acting for this purpose as an agent of the Borrowers,
shall maintain at one of its offices a copy of each Assignment and Assumption
delivered to it and a register for the recordation of the names and addresses
of the Lenders, and the Commitment of, and principal amount of the Loans,
amounts in respect of B/A Drawings and L/C Disbursements 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, the Issuing Bank and
the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for

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all purposes of this Agreement,
notwithstanding notice to the contrary. 
The Register shall be available for inspection by the Borrowers, the
Issuing Bank and any Lender, at any reasonable time and from time to time upon
reasonable prior notice.

(v) Upon its
receipt of a duly completed Assignment and Assumption executed by an assigning
Lender and an assignee, the assignee’s completed Administrative Questionnaire
and any tax forms required by Section 2.17(e) (unless the assignee shall
already be a Lender hereunder), the processing and recordation fee referred to
in paragraph (b) of this Section 9.04 and any written consent to such
assignment required by paragraph (b) of this Section 9.04, the Administrative
Agent shall accept such Assignment and Assumption and record the information
contained therein in the Register, provided that if either the assigning
Lender or the assignee shall have failed to make any payment required to be
made by it pursuant to Section 2.05, Section 2.06(d), Section 2.06(e), Section
2.07(b), Section 2.18(d) or Section 9.03(c), the Administrative Agent shall
have no obligation to accept such Assignment and Assumption and record the
information therein in the Register unless and until such payment shall have
been made in full, together with all accrued interest thereon.  No assignment shall be effective for purposes
of this Agreement unless it has been recorded in the Register as provided in
this paragraph.

(c)  (i) Any Lender may, without
the consent of any Loan Party, the Administrative Agent, the Issuing Bank or
the Swingline Lender, sell participations to one or more banks or other
entities (a “Participant”) in all or a portion of such Lender’s rights
and obligations under this Agreement (including all or a portion of its
Commitment and the Loans owing to it), provided that (A) such
Lender’s obligations under this Agreement shall remain unchanged, (B) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (C) the Borrowers, the Administrative
Agent, the Issuing Bank and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement.  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, modification or waiver described in clauses (i), (ii),
(iii), (vii) and (viii) of the first proviso to Section 9.02(b) (to the extent
such amendment, modification or waiver directly and adversely affects such
Participant).  Subject to paragraph
(c)(ii) of this Section 9.04, each Borrower agrees that each Participant shall
be entitled to the benefits of Sections 2.15, 2.16 and 2.17 to the same extent
as if it were a Lender and had acquired its interest by assignment pursuant to
paragraph (b) of this Section 9.04.  To
the extent permitted by law, each Participant also shall be entitled to the benefits
of Section 9.08 as though it were a Lender, provided such
Participant agrees to be subject to Section 2.18(c) as though it were a Lender.

(ii) A
Participant shall not be entitled to receive any greater payment under Section
2.15 or 2.17 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 Parent Borrower’s prior
written consent.  A Participant that
would be a Foreign Lender if it were a Lender shall not be entitled to the
benefits of Section 2.17 unless the Parent Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the
benefit of the Borrowers, to comply with Section 2.17(e) as though it were
a Lender.

(d)  Any Lender may at any time
pledge or assign a security interest in all or any portion of its rights under
this Agreement to secure obligations of such Lender, including without
limitation any pledge or assignment to secure obligations to a Federal Reserve
Bank, and this Section 9.04 shall not

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apply to any
such pledge or assignment of a security interest, provided that no such
pledge or assignment of a security interest shall release a Lender from any of
its obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

(e)  (i) Notwithstanding anything
to the contrary contained herein, any Lender (a “Granting Lender”) may
grant to a special purpose funding vehicle organized and administered by such
Lender (an “SPV”), identified as such in writing from time to time by
such Granting Lender to the Administrative Agent and the Parent Borrower, the
option to provide to the applicable Borrower all or any part of any Loan that
such Granting Lender would otherwise be obligated to make to such Borrower
pursuant to this Agreement, provided that (i) nothing herein shall
constitute a commitment by any SPV to make any Loan, (ii) if an SPV elects
not to exercise such option or otherwise fails to provide all or any part of
such Loan, such Granting Lender shall be obligated to make such Loan pursuant
to the terms hereof, (iii) such Granting Lender’s other obligations under this
Agreement shall remain unchanged, (iv) such Granting Lender shall remain solely
responsible to the other parties hereto for the performance of such
obligations, (v) the Borrowers, the Administrative Agent, the Issuing Bank and
the other Lenders shall continue to deal solely and directly with the Granting
Lender in connection with such Granting Lender’s right and obligations under
this Agreement and (vi) an SPV shall not be entitled to receive any greater
payment under Section 2.15 or Section 2.17 than the applicable Granting Lender
would have been entitled to receive.  The
making of a Loan by an SPV hereunder shall utilize the Commitment of the
Granting Lender to the same extent, and as if, such Loan were made by such
Granting Lender.  Any agreement or
instrument pursuant to which the Granting Lender grants such an option to an
SPV shall provide that such 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, provided that such agreement or
instrument may provide that such Granting Lender will not, without the consent
of such SPV, agree to any amendment, modification or waiver described in
clauses (i), (ii), (iii), (vii) and (viii) of the first proviso to Section
9.02(b) (to the extent such amendment, modification or waiver directly and
adversely affects such SPV).  Subject to
paragraph (e)(ii) of this Section 9.04, each Borrower agrees that each SPV
shall be entitled to the benefits of Sections 2.15, 2.16 and 2.17 to the same
extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (b) of this Section 9.04. 
To the extent permitted by law, each SPV also shall be entitled to the
benefits of Section 9.08 as though it were a Lender, provided such
SPV agrees to be subject to Section 2.18(c) as though it were a Lender.

(ii) An SPV
that would be a Foreign Lender if it were a Lender shall not be entitled to the
benefits of Section 2.17 unless such SPV agrees, for the benefit of the
Borrowers, to comply with Section 2.17(e) as though it were a Lender.

(iii) Each
party hereto hereby agrees that no SPV shall be liable for any 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 payment in full of all outstanding commercial
paper or other senior indebtedness of any SPV, such party will not institute
against, or join any other person in instituting against, such SPV any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
under the laws of the United States or any state thereof or Canada or any
province thereof.

(iv) In
addition, notwithstanding anything to the contrary contained in this Section
9.04, any SPV may (i) with notice to, but without the prior written
consent of, the Parent Borrower and the Administrative Agent and without paying
any processing fee therefor, assign all or a portion of its interests in any
Loans to the Granting Lender or to any financial institutions (consented to by
the Borrower and Administrative Agent) providing

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liquidity or credit support to or for the
account of such SPV to support the funding or maintenance of Loans and
(ii) subject to Section 9.12, disclose on a confidential basis any
non-public information relating to its Loans to any rating agency, commercial
paper dealer or provider of any surety, guarantee or credit or liquidity
enhancement to such SPV.

SECTION 9.05.  Survival.  All covenants, agreements, representations
and warranties made by the Loan Parties in the Loan Documents and in the
certificates or other instruments 
delivered in connection with or pursuant to this Agreement or any other
Loan Document shall be considered to have been relied upon by the other parties
hereto and shall survive the execution and delivery of the Loan Documents and
the making of any Loans and issuance of any Letters of Credit, regardless of
any investigation made by any such other party or on its behalf and
notwithstanding that the Administrative Agent, the Issuing Bank or any Lender
may have had notice or knowledge of any Default or incorrect representation or
warranty at the time any credit is extended hereunder, and shall continue in
full force and effect as long as the principal of or any accrued interest on
any Loan or any amount due in respect of any B/A or any fee or any other amount
payable under this Agreement is outstanding and unpaid or any Letter of Credit
is outstanding and so long as the Commitments have not expired or
terminated.  The provisions of
Sections 2.15, 2.16, 2.17, 9.03 and 9.12 and Article VIII shall
survive and remain in full force and effect regardless of the consummation of
the transactions contemplated hereby, the repayment of the Loans and amounts
due in respect of B/As, the expiration or termination of the Letters of Credit
and the Commitments or the termination of this Agreement or any provision
hereof.

SECTION 9.06.  Counterparts;
Integration; Effectiveness.  This
Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract.  This Agreement, the other Loan Documents and
any separate letter agreements with respect to fees payable to the
Administrative Agent  or the syndication
of the Loans and Commitments 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, and thereafter shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.  Delivery of an executed counterpart of a
signature page of this Agreement by facsimile shall be effective as delivery of
a manually executed counterpart of this Agreement.

SECTION 9.07.  Severability.  Any provision of any Loan Document 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 thereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

SECTION
9.08.  Right of Setoff.  If an Event of Default shall have occurred
and be continuing, each Lender, the Issuing Bank and each of its Affiliates is
hereby authorized at any time and from time to time, to the fullest extent
permitted by 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 Issuing Bank or any such Affiliate to or for the credit or the
account of either Borrower or any Loan Guarantor against any of and all the
Secured Obligations held by such Lender or the Issuing Bank, irrespective of
whether or not such Lender or the Issuing Bank shall have made any demand under
the Loan Documents and although such obligations may be unmatured.  The applicable Lender and the Issuing Bank
shall notify the Parent

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Borrower and
the Administrative Agent of such set-off or application, provided that
any failure to give or any delay in giving such notice shall not affect the
validity of any such set-off or application under this Section 9.08.  The rights of each Lender, the Issuing Bank
and their respective Affiliates under this Section 9.08 are in addition to
other rights and remedies (including other rights of setoff) which such Lender,
the Issuing Bank and their respective Affiliates may have.

SECTION 9.09.  Governing Law;
Jurisdiction; Consent to Service of Process.  (a) 
The Loan Documents (other than those containing a contrary express
choice of law provision) shall be governed by and construed in accordance with
the laws of the State of New York.

(b)  Each Loan Party hereby irrevocably and unconditionally submits,
for itself and its property, to the nonexclusive jurisdiction of any U.S.
Federal or New York State court sitting in New York, New York in any action or
proceeding arising out of or relating to any Loan Documents, or for recognition
or enforcement of any judgment, and each of the parties hereto hereby
irrevocably and unconditionally agrees that all claims in respect of any such
action or proceeding may be heard and determined in such New York State or, to
the extent permitted by law, in such Federal court.  Each of the parties hereto agrees that a
final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.  Nothing in this
Agreement or any other Loan Document shall affect any right that the
Administrative Agent, the Issuing Bank or any Lender may otherwise have to
bring any action or proceeding relating to this Agreement or any other Loan
Document against any Loan Party or its properties in the courts of any
jurisdiction.

(c)  Each Loan Party hereby
irrevocably and unconditionally waives, to the fullest extent it may legally
and effectively do so, any objection which it may now or hereafter have to the
laying of venue of any suit, 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 9.09.  Each of the
parties hereto hereby irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

(d)  Each party to this Agreement
irrevocably consents to service of process in the manner provided for notices
in Section 9.01.  Nothing in this
Agreement or any other Loan Document will affect the right of any party to this
Agreement to serve process in any other manner permitted by law.

SECTION 9.10.  WAIVER OF JURY
TRIAL.  EACH PARTY HERETO HEREBY
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, 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 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 SECTION 9.10.

SECTION 9.11.  Headings.  Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of
this Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

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SECTION 9.12.  Confidentiality. Each of the Administrative Agent, the
Issuing Bank and the Lenders agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed
(a) 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 Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority, provided
that, other than in connection with routine regulatory examinations, the
Administrative Agent, the Issuing Bank or the applicable Lender, as the case
may be, shall use commercially reasonable efforts to give prior notice of such
disclosure to the Parent Borrower to the extent permitted by applicable
Requirements of Law, (c) to the extent required by Requirement of Law or
by any subpoena or similar legal process, (d) to any other party to this Agreement,
provided that the Administrative Agent, the Issuing Bank or the
applicable Lender, as the case may be, shall use commercially reasonable
efforts to give prior notice of such disclosure to the Parent Borrower to the
extent permitted by applicable Requirements of Law, (e) in connection with the
exercise of any remedies hereunder or any suit, 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 9.12, 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 the Loan Parties and their obligations, (g) with the consent of the Parent
Borrower or (h) to the extent such Information (i) becomes publicly
available other than as a result of a breach of this Section 9.12 or
(ii) becomes available to the Administrative Agent, the Issuing Bank or
any Lender on a nonconfidential basis from a source other than the Parent
Borrower, provided that the source is not actually known by such
disclosing party to be bound by an agreement containing provisions
substantially the same as those contained in this Section 9.12.  For the purposes of this Section 9.12, “Information”
means all information received from the Parent Borrower relating to the Parent
Borrower or its business, other than any such information that is available to
the Administrative Agent, the Issuing Bank or any Lender on a nonconfidential
basis prior to disclosure by the Parent Borrower.  Any Person required to maintain the
confidentiality of Information as provided in this Section 9.12 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.

SECTION 9.13.  Several
Obligations; Nonreliance; Violation of Law. 
The respective obligations of the Lenders hereunder are several and not
joint and the failure of any Lender to make any Loan or perform any of its
obligations hereunder shall not relieve any other Lender from any of its
obligations hereunder. Each Lender hereby represents that it is not relying on
or looking to any margin stock for the repayment of the Borrowings provided for
herein.  Anything contained in this Agreement
to the contrary notwithstanding, neither the Issuing Bank nor any Lender shall
be obligated to extend credit to the Borrower in violation of any Requirement
of Law.

SECTION 9.14.  USA PATRIOT
Act.  Each Lender that is subject to
the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed
into law October 26, 2001)) (the “Act”) hereby notifies each Borrower
that pursuant to the requirements of the Act, it is required to obtain, verify
and record information that identifies such Borrower, which information
includes the name and address of such Borrower and other information that will
allow such Lender to identify such Borrower in accordance with the Act.

SECTION 9.15.  Disclosure.  Each Loan Party and each Lender hereby
acknowledges and agrees that the Administrative Agent and/or its Affiliates
from time to time may hold investments in, make other loans to or have other
relationships with any of the Loan Parties and their respective Affiliates.

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SECTION 9.16.  Appointment for
Perfection.  Each Lender hereby
appoints each other Lender as its agent for the purpose of perfecting Liens,
for the benefit of the Administrative Agent and the Lenders, in assets which,
in accordance with Article 9 of the UCC or any other applicable law can be
perfected only by possession.  Should any
Lender (other than the Administrative Agent) obtain possession of any such
Collateral, such Lender shall notify the Administrative Agent thereof, and,
promptly upon the Administrative Agent’s request therefor shall deliver such
Collateral to the Administrative Agent or otherwise deal with such Collateral
in accordance with the Administrative Agent’s instructions.

SECTION 9.17.  Interest Rate Limitation.  Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan or B/A
Drawing, together with all fees, charges and other amounts which are treated as
interest on such Loan or B/A Drawing under applicable law (collectively the “Charges”),
shall exceed the maximum lawful rate (the “Maximum Rate”) which may be
contracted for, charged, taken, received or reserved by the Lender holding such
Loan or B/A Drawing in accordance with applicable law, the rate of interest
payable in respect of such Loan or B/A Drawing 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 or B/A Drawing but were not payable as a result of the
operation of this Section 9.17 shall be cumulated and the interest and Charges
payable to such Lender in respect of other Loans or B/A Drawings or periods
shall be increased (but not above the Maximum Rate therefor) until such
cumulated amount, together with interest thereon at the Federal Funds Effective
Rate to the date of repayment, shall have been received by such Lender.

SECTION 9.18.  Quebec.  For greater certainty, and without limiting
the powers of the Administrative Agent or any other Person acting as an agent,
attorney-in-fact or mandatary for the Administrative Agent under this Agreement
or under any other Loan Document, each Lender and Administrative Agent hereby
(a) irrevocably constitutes, to the extent necessary, the Administrative
Agent as the holder of an irrevocable power of attorney (fondé  de
pouvoir within the meaning of Article 2692 of the Civil Code of Québec) for the purposes of
holding any Liens, including hypothecs, granted or to be granted by any Loan
Party on movable or immovable property pursuant to the laws of the Province of
Quebec to secure obligations of a Loan Party under any bond issued by a Loan
Party; and (b) appoints and agrees that the Administrative Agent, acting
as agent for the Lenders, may act as the bondholder and mandatary with respect to
any bond that may be issued and pledged from time to time for the benefit of
the Lenders the Administrative Agent.

The said
constitution of the Administrative Agent as fondé  de  pouvoir (holder of an 
irrevocable power of attorney within the meaning of Article 2692 of the Civil Code of Québec) and as bondholder and mandatary with
respect to any such bond shall be deemed to have been ratified and confirmed by
any assignee pursuant to Section 9.04 by the execution of the applicable
Assignment and Assumption.

Notwithstanding
the provisions of Section 32 of An Act respecting the special powers of
legal persons (Quebec), the Administrative Agent may purchase, acquire and
be the holder of any bond issued by any Loan Party.  Each Loan Party hereby acknowledges that any
such bond shall constitute a title of indebtedness, as such term is used in
Article 2692 of the Civil Code of Québec.

The Administrative
Agent herein appointed as fondé  de  pouvoir shall have the
same rights, powers and immunities of the Administrative Agent as stipulated in
Article VIII, which shall apply mutatis  mutandis.  Without limitation, the provisions of Article
VIII of this Agreement shall apply mutatis  mutandis to the
resignation and appointment of a successor to the Administrative Agent acting
as fondé  de  pouvoir.

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SECTION 9.19.  Judgment Currency.  (a) 
The obligations of any Loan Party under this Agreement and the other
Loan Documents to make payments in U.S. Dollars or in Canadian Dollars (in any
such case, the “Obligation Currency”) shall not be discharged or
satisfied by any tender or recovery pursuant to any judgment expressed in or
converted into any currency other than the Obligation Currency, except to the
extent that such tender or recovery results in the effective receipt by the Administrative
Agent, the Issuing Bank or the respective Lender, as the case may be, of the
full amount of the Obligation Currency expressed to be payable to the
Administrative Agent, the Issuing Bank or such Lender, as the case may be,
under this Agreement or the other Loan Documents.  If, for the purpose of obtaining or enforcing
a judgment against any Loan Party in any court or in any jurisdiction, it
becomes necessary to convert into or from any currency other than the
Obligation Currency (such other currency, the “Judgment Currency”) an
amount due in the Obligation Currency, the conversion shall be made at the rate
of exchange quoted by the Administrative Agent, determined, in each case, as of
the business day immediately preceding the day on which the judgment is given
(such business day, the “Judgment Currency Conversion Date”).

(b)  If there is a change in the
rate of exchange prevailing between the Judgment Currency Conversion Date and
the date of actual payment of the amount due, each Loan Party covenants and
agrees to pay, or cause to be paid, such additional amounts, if any (but in any
event not a lesser amount), as may be necessary to ensure that the amount paid
in the Judgment Currency, when converted at the rate of exchange prevailing on
the actual date of payment, will produce the amount of the Obligation Currency
that could have been purchased with the amount of the Judgment Currency
stipulated in the judgment or judicial award at the rate of exchange prevailing
on the Judgment Currency Conversion Date.

(c)  For purposes of determining
any rate of exchange for this Section 9.19, such amounts shall include any
premium and costs payable in connection with the purchase of the Obligation
Currency.

SECTION 9.20.  Obligations of
the Canadian Subsidiary Borrower and Foreign Subsidiary Loan Parties.  Notwithstanding anything contained herein or
in the other Loan Documents to the contrary, none of the Canadian Subsidiary
Borrower or any Foreign Subsidiary Loan Party shall be liable for any U.S.
Secured Obligations, and none of the Collateral pledged by the Canadian
Subsidiary Borrower or any Foreign Subsidiary Loan Party shall secure any U.S.
Secured Obligations.  In addition, any
insurance proceeds from any Collateral pledged by the Canadian Subsidiary Borrower
or any Foreign Subsidiary Loan Party shall not be available to pay any U.S.
Secured Obligations.

SECTION 9.21.  Residency for
Tax Purposes.  (a)  Where at any time an interest in a Loan to
the Canadian Subsidiary Borrower or other Canadian Obligation of the Canadian
Subsidiary Borrower or any Canadian Subsidiary Loan Party becomes held by a
Lender or other Person that is not a Canadian Resident, the applicable Lender
shall forthwith deliver to the Canadian Subsidiary Borrower a notice in writing
(i) stating that an interest in such Loan or such Canadian Obligation is
held by a Person that is not a Canadian Resident, (ii) indicating the
portion of any payment made after that time in respect of such Loan or such
Canadian Obligation that will be subject to Canadian withholding tax and the
applicable rate of such withholding tax and (iii) acknowledging the
Canadian Subsidiary Borrower’s or applicable Canadian Subsidiary Loan Party’s
obligation to withhold and remit such tax to the applicable tax authorities.  Such notice shall be delivered to the
Canadian Subsidiary Borrower no later than five Business Days prior to the date
on which the Canadian Subsidiary Borrower or the applicable Canadian Subsidiary
Loan Party is first obligated to make a payment in respect of the Loan or other
Canadian Obligation for the benefit of a Person who is not a Canadian Resident.

(b)  Where at any time the
interest of a Lender or Person described in Section 9.21(a) changes, the
applicable Lender shall forthwith deliver to the Canadian Subsidiary Borrower
an additional

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notice in
writing (i) stating whether or not an interest in such Loan or other
Canadian Obligation is held by a Person that is not a Canadian Resident,
(ii) indicating the portion of any payment made after that time in respect
of such Loan or other Canadian Obligation that will be subject to Canadian
withholding tax and the applicable rate of such withholding tax and
(iii) acknowledging the Canadian Subsidiary Borrower’s or applicable
Canadian Subsidiary Loan Party’s obligation to withhold and remit such tax to
the applicable tax authorities.  Such
notice shall be delivered to the Canadian Subsidiary Borrower no later than
five Business Days prior to the date on which the Canadian Subsidiary Borrower
or applicable Canadian Subsidiary Loan Party is first obligated to make a
payment in respect of the Loan or other Canadian Obligation following such
change in interest.

(c)  Where at any time, by virtue
of a Change in Law or otherwise, the withholding tax rate applicable in respect
of a Lender or Person described in Section 9.21(a) or (b) changes, the
applicable Lender shall forthwith deliver to the Canadian Subsidiary Borrower
an additional notice in writing stating such revised applicable withholding tax
rate.  Such notice shall be delivered to
the Canadian Subsidiary Borrower no later than five Business Days prior to the
date on which the Canadian Subsidiary Borrower or applicable Canadian
Subsidiary Loan Party is first obligated to make a payment in respect of the
Loan or other Canadian Obligation following such change in applicable
withholding tax rates.

(d)  The Canadian Subsidiary
Borrower shall, absent manifest error, be entitled to rely upon all notices
delivered to it in accordance with this Section 9.21 and shall take
commercially reasonable steps to comply with such notices.

SECTION 9.22.  Intercreditor
Agreement.  Each Lender hereby
appoints JPMorgan Chase Bank, N.A. to act as intercreditor agent (the “Intercreditor
Agent”) under the Intercreditor Agreement and authorizes the Intercreditor
Agent to execute the Intercreditor Agreement in the name of and for the benefit
of the Lenders.  Each Lender further
expressly accepts and agrees to the terms and provisions of the Intercreditor
Agreement.

ARTICLE X

Loan Guaranty

SECTION 10.01.  Guaranty.  (a) 
Each U.S. Loan Guarantor hereby agrees that it is jointly and severally
liable for, and, as primary obligor and not merely as surety, absolutely and
unconditionally guarantees to the Lenders the prompt payment when due, whether
at stated maturity, upon acceleration or otherwise, and at all times
thereafter, of the Secured Obligations and all costs and expenses including,
without limitation, all court costs and attorneys’ and paralegals’ fees and
expenses paid or incurred by the Administrative Agent, the Issuing Bank and the
Lenders in endeavoring to collect all or any part of the Secured Obligations
from, or in prosecuting any action against, either Borrower, any Loan Guarantor
or any other guarantor of all or any part of the Secured Obligations (such
costs and expenses, together with the Secured Obligations, collectively the “U.S.
Guaranteed Obligations”).  Each U.S.
Loan Guarantor further agrees that the U.S. Guaranteed Obligations may be
extended or renewed in whole or in part without notice to or further assent
from it, and that it remains bound upon its guarantee notwithstanding any such
extension or renewal.

(b)  Each Foreign Loan Guarantor
hereby agrees that it is jointly and severally liable for, and, as primary
obligor and not merely as surety, absolutely and unconditionally guarantees to
the Lenders the prompt payment when due, whether at stated maturity, upon
acceleration or otherwise, and at all times thereafter, of the Canadian Secured
Obligations and all costs and expenses including, without limitation, all court
costs and attorneys’ and paralegals’ fees and expenses paid or incurred by the
Administrative Agent, the Issuing Bank and the Lenders in endeavoring to
collect all or any part of the

 125
 

 

Canadian
Secured Obligations from, or in prosecuting any action against, either
Borrower, any Loan Guarantor or any other guarantor of all or any part of the
Canadian Secured Obligations (such costs and expenses, together with the
Canadian Secured Obligations, collectively the “Foreign Guaranteed
Obligations” and, together with the U.S. Guaranteed Obligations, the “Guaranteed
Obligations”).  Each Foreign Loan
Guarantor further agrees that the Foreign Guaranteed Obligations may be
extended or renewed in whole or in part without notice to or further assent
from it, and that it remains bound upon its guarantee notwithstanding any such
extension or renewal.

(c)  All terms of this Loan
Guaranty apply to and may be enforced by or on behalf of any domestic or
foreign branch or Affiliate of any Lender that extended any portion of the
Guaranteed Obligations.

SECTION 10.02.  Guaranty of
Payment.  This Loan Guaranty is a
guaranty of payment and not of collection. 
Each Loan Guarantor waives any right to require the Administrative
Agent, the Issuing Bank or any Lender to sue either Borrower, any Loan
Guarantor, any other guarantor, or any other person obligated for all or any
part of the Guaranteed Obligations (each, an “Obligated Party”), or
otherwise to enforce its payment against any collateral securing all or any
part of the Guaranteed Obligations.

SECTION 10.03.  No Discharge or Diminishment of Loan Guaranty.  (a)  Except as otherwise provided for
herein, the obligations of each Loan Guarantor hereunder are unconditional and
absolute and not subject to any reduction, limitation, impairment or
termination for any reason (other than the payment in full in cash of the U.S.
Guaranteed Obligations or the Foreign Guaranteed Obligations, as the case may
be), including:  (i) any claim of waiver,
release, extension, renewal, settlement, surrender, alteration, or compromise
of any of the Guaranteed Obligations, by operation of law or otherwise; (ii)
any change in the corporate existence, structure or ownership of either
Borrower or any other guarantor of or other person liable for any of the
Guaranteed Obligations; (iii) any insolvency, bankruptcy, reorganization or
other similar proceeding affecting any Obligated Party, or their assets or any
resulting release or discharge of any obligation of any Obligated Party; or
(iv) the existence of any claim, setoff or other rights which any Loan
Guarantor may have at any time against any Obligated Party, the Administrative
Agent, the Issuing Bank, any Lender, or any other person, whether in connection
herewith or in any unrelated transactions.

(b)  The obligations of each Loan
Guarantor hereunder are not subject to any defense or setoff, counterclaim,
recoupment, or termination whatsoever by reason of the invalidity, illegality,
or unenforceability of any of the Guaranteed Obligations or otherwise, or any
provision of applicable law or regulation purporting to prohibit payment by any
Obligated Party, of the Guaranteed Obligations or any part thereof.

(c)  Further, the obligations of
any Loan Guarantor hereunder are not discharged or impaired or otherwise
affected by: (i) the failure of the Administrative Agent, the Issuing Bank or
any Lender to assert any claim or demand or to enforce any remedy with respect
to all or any part of the Guaranteed Obligations; (ii) any waiver or
modification of or supplement to any provision of any agreement relating to the
Guaranteed Obligations; (iii) any release, non-perfection, or invalidity of any
indirect or direct security for the obligations of either Borrower for all or
any part of the Guaranteed Obligations or any obligations of any other
guarantor of or other person liable for any of the Guaranteed Obligations; (iv)
any action or failure to act by the Administrative Agent, the Issuing Bank or
any Lender with respect to any collateral securing any part of the Guaranteed
Obligations; or (v) any default, failure or delay, willful or otherwise, in the
payment or performance of any of the Guaranteed Obligations, or any other
circumstance, act, omission or delay that might in any manner or to any extent
vary the risk of

 126
 

 

such Loan
Guarantor or that would otherwise operate as a discharge of any Loan Guarantor
as a matter of law or equity (other than the payment in full in cash of the
Guaranteed Obligations).

SECTION 10.04.  Defenses
Waived.  To the fullest extent
permitted by applicable law, each Loan Guarantor hereby waives any defense
based on or arising out of any defense of either Borrower or any Loan Guarantor
or the unenforceability of all or any part of the Guaranteed Obligations from
any cause, or the cessation from any cause of the liability of either Borrower
or any Loan Guarantor, other than the payment in full in cash of the Guaranteed
Obligations. Without limiting the generality of the foregoing, each Loan Guarantor irrevocably waives acceptance
hereof, presentment, demand, protest and, to the fullest extent permitted by
law, any notice not provided for herein, as well as any requirement that at any
time any action be taken by any person against any Obligated Party, or any other person.  The Administrative Agent may, at its
election, foreclose on any Collateral held by it by one or more judicial or
nonjudicial sales, accept an assignment of any such Collateral in lieu of
foreclosure or otherwise act or fail to act with respect to any collateral
securing all or a part of the Guaranteed Obligations, compromise or adjust any
part of the Guaranteed Obligations, make any other accommodation with any
Obligated Party or exercise any other right or remedy available to it against any
Obligated Party, without affecting or impairing in any way the liability of
such Loan Guarantor under this Loan Guaranty except to the extent the
Guaranteed Obligations have been fully paid in cash.  To the fullest extent permitted by applicable
law, each Loan Guarantor waives any defense arising out of any such election
even though that election may operate, pursuant to applicable law, to impair or
extinguish any right of reimbursement or subrogation or other right or remedy
of any Loan Guarantor against any Obligated Party or any security.

SECTION 10.05.  Rights of Subrogation.  No Loan Guarantor will assert any right,
claim or cause of action, including, without limitation, a claim of
subrogation, contribution or indemnification that it has against any Obligated
Party, or any collateral, until the Loan Parties and the Loan Guarantors have
fully performed all their obligations (other than Unliquidated Obligations) to
the Administrative Agent, the Issuing Bank and the Lenders.

SECTION 10.06.  Reinstatement; Stay of
Acceleration.  If at any time any
payment of any portion of the Guaranteed Obligations is rescinded or must
otherwise be restored or returned upon the insolvency, bankruptcy, or
reorganization of either Borrower or otherwise, each Loan Guarantor’s
obligations under this Loan Guaranty with respect to that payment shall be
reinstated at such time as though the payment had not been made and whether or
not the Administrative Agent, the Issuing Bank and the Lenders are in
possession of this Loan Guaranty. If
acceleration of the time for payment of any of the Guaranteed Obligations is
stayed upon the insolvency, bankruptcy or reorganization of either Borrower,
all such amounts otherwise subject to acceleration under the terms of any
agreement relating to the Guaranteed Obligations shall nonetheless be payable
by the Loan Guarantors forthwith on demand by the Lender.

SECTION 10.07.  Information.  Each Loan Guarantor assumes all
responsibility for being and keeping itself informed of the applicable Borrower’s
financial condition and assets, and of all other circumstances bearing upon the
risk of nonpayment of the applicable Guaranteed Obligations and the nature,
scope and extent of the risks that each Loan Guarantor assumes and incurs under
this Loan Guaranty, and agrees that neither the Administrative Agent, the
Issuing Bank nor any Lender shall have any duty to advise any Loan Guarantor of
information known to it regarding those circumstances or risks.

SECTION 10.08.  Taxes.  All payments of the Guaranteed Obligations
will be made by each Loan Guarantor free and clear of and without deduction for
any Indemnified Taxes or Other Taxes, provided that if any Loan
Guarantor shall be required to deduct any Indemnified Taxes or Other Taxes from
such payments, then (i) the sum payable shall be increased as necessary so
that after making all required deductions (including deductions applicable to
additional sums payable under this Section 10.08)

 127
 

 

the
Administrative Agent, Lender or Issuing Bank (as the case may be) receives an
amount equal to the sum it would have received had no such deductions been
made, (ii) such Loan Guarantor shall make such deductions and
(iii) such Loan Guarantor shall pay the full amount deducted to the
relevant Governmental Authority in accordance with applicable law.

SECTION 10.09.  Maximum Liability.  The provisions of this Loan Guaranty are
severable, and in any action or proceeding involving any state, provincial or
foreign corporate law, or any federal, state, provincial or foreign bankruptcy,
insolvency, reorganization or other law affecting the rights of creditors
generally, if the obligations of any Loan Guarantor under this Loan Guaranty
would otherwise be held or determined to be avoidable, invalid or unenforceable
on account of the amount of such Loan Guarantor’s liability under this Loan
Guaranty, then, notwithstanding any other provision of this Loan Guaranty to
the contrary, the amount of such liability shall, without any further action by
the Loan Guarantors or the Lenders, be automatically limited and reduced to the
highest amount that is valid and enforceable as determined in such action or
proceeding (such highest amount determined hereunder being the relevant Loan
Guarantor’s “Maximum Liability”). 
This Section 10.09 with respect to the Maximum Liability of each Loan
Guarantor is intended solely to preserve the rights of the Lenders to the
maximum extent not subject to avoidance under applicable law, and no Loan
Guarantor nor any other person or entity shall have any right or claim under
this Section 10.09 with respect to such Maximum Liability, except to the extent
necessary so that the obligations of any Loan Guarantor hereunder shall not be
rendered voidable under applicable law. Each
Loan Guarantor agrees that the Guaranteed Obligations may at any time and from
time to time exceed the Maximum Liability of each Loan Guarantor without
impairing this Loan Guaranty or affecting the rights and remedies of the
Lenders hereunder, provided that nothing in this sentence shall be
construed to increase any Loan Guarantor’s obligations hereunder beyond its
Maximum Liability.

As an original and
independent obligation under this Guaranty, each U.S. Loan Guarantor or Foreign
Loan Guarantor, as the case may be, shall indemnify each of the Administrative
Agent, the Issuing Bank and each Lender (together with its Affiliates, if
applicable; such Persons, the “Guaranteed Parties”) and keep each of
them indemnified against all costs, losses, expenses and liabilities of
whatever kind resulting from the failure by any of the U.S. Loan Guarantors or
Foreign Loan Guarantors, as the case may be, to make due and punctual payment
of any of the U.S. Guaranteed Obligations or Foreign Guaranteed Obligations, as
the case may be, or resulting from any of the U.S. Guaranteed Obligations or
Foreign Guaranteed Obligations, as the case may be, being or becoming void,
voidable, unenforceable or ineffective against such U.S. Loan Guarantors or
Foreign Loan Guarantors, as the case may be (including all legal and other costs,
charges and expenses incurred by the Guaranteed Parties, or any of them, in
connection with preserving or enforcing, or attempting to preserve or enforce,
its rights under this Guaranty) and pay on demand the amount of such costs,
losses, expenses and liabilities whether or not any of the Guaranteed Parties
have attempted to enforce any rights against any other Loan Guarantor or any
other Person or otherwise.

SECTION 10.10.  Contribution.  (a)  In the event any U.S. Loan Guarantor
(a “U.S. Paying Guarantor”) shall make any payment or payments under
this Loan Guaranty or shall suffer any loss as a result of any realization upon
any collateral granted by it to secure its obligations under this Loan
Guaranty, each other U.S. Loan Guarantor (each a “U.S. Non-Paying Guarantor”)
shall contribute to such U.S. Paying Guarantor an amount equal to such U.S.
Non-Paying Guarantor’s Domestic Applicable Percentage (as defined below) of
such payment or payments made, or losses suffered, by such U.S. Paying
Guarantor.  For purposes of this
paragraph (a) of this Section 10.10, each U.S. Non-Paying Guarantor’s “Domestic
Applicable Percentage” with respect to any such payment or loss by a U.S.
Paying Guarantor shall be determined as of the date on which such payment or
loss was made by reference to the ratio of (i) such U.S. Non-Paying Guarantor’s
Maximum Liability as of such date (without giving effect to any right to
receive, or obligation to make, any contribution hereunder) or, if such U.S.
Non-Paying

 128
 

 

Guarantor’s Maximum Liability has not been determined, the aggregate
amount of all monies received by such U.S. Non-Paying Guarantor from the Parent
Borrower after the date hereof (whether by loan, capital infusion or by other
means) to (ii) the aggregate Maximum Liability of all U.S. Loan Guarantors
hereunder (including such U.S. Paying Guarantor) as of such date (without
giving effect to any right to receive, or obligation to make, any contribution
hereunder), or to the extent that a Maximum Liability has not been determined
for any U.S. Loan Guarantor, the aggregate amount of all monies received by
such U.S. Loan Guarantors from the Parent Borrower after the date hereof
(whether by loan, capital infusion or by other means).  Nothing in this provision shall affect any
U.S. Loan Guarantor’s several liability for the entire amount of the U.S.
Guaranteed Obligations (up to such U.S. Loan Guarantor’s Maximum Liability).

(b)  In
the event any Foreign Loan Guarantor (a “Foreign Paying Guarantor”)
shall make any payment or payments under this Loan Guaranty or shall suffer any
loss as a result of any realization upon any collateral granted by it to secure
its obligations under this Loan Guaranty, each other Foreign Loan Guarantor
(each a “Foreign Non-Paying Guarantor” and, collectively together with
the Domestic Non-Paying Guarantors, the “Non-Paying Guarantors”) shall
contribute to such Foreign Paying Guarantor an amount equal to such Foreign
Non-Paying Guarantor’s Foreign Applicable Percentage (as defined below) of such
payment or payments made, or losses suffered, by such Foreign Paying
Guarantor.  For purposes of this
paragraph (b) of this Section 10.10, each Foreign Non-Paying Guarantor’s “Foreign
Applicable Percentage” with respect to any such payment or loss by a
Foreign Paying Guarantor shall be determined as of the date on which such
payment or loss was made by reference to the ratio of (i) such Foreign
Non-Paying Guarantor’s Maximum Liability as of such date (without giving effect
to any right to receive, or obligation to make, any contribution hereunder) or,
if such Foreign Non-Paying Guarantor’s Maximum Liability has not been
determined, the aggregate amount of all monies received by such Foreign
Non-Paying Guarantor from the Canadian Subsidiary Borrower after the date
hereof (whether by loan, capital infusion or by other means) to (ii) the
aggregate Maximum Liability of all Foreign Loan Guarantors hereunder (including
such Foreign Paying Guarantor) as of such date (without giving effect to any
right to receive, or obligation to make, any contribution hereunder), or to the
extent that a Maximum Liability has not been determined for any Foreign Loan
Guarantor, the aggregate amount of all monies received by such Foreign Loan
Guarantors from the Canadian Subsidiary Borrower after the date hereof (whether
by loan, capital infusion or by other means). 
Nothing in this provision shall affect any Foreign Loan Guarantor’s
several liability for the entire amount of the Foreign Guaranteed Obligations
(up to such Foreign Loan Guarantor’s Maximum Liability).

(c) 
Each of the Loan Guarantors covenants and agrees that its right to
receive any contribution under this Loan Guaranty from a Non-Paying Guarantor
shall be subordinate and junior in right of payment to the payment in full in
cash of the Guaranteed Obligations (other than Unliquidated Obligations).  This provision is for the benefit of both the
Administrative Agent, the Issuing Bank, the Lenders and the Loan Guarantors and
may be enforced by any one, or more, or all of them in accordance with the
terms hereof.

SECTION 10.11.  Liability Cumulative.  The liability of each Loan Party as a Loan
Guarantor under this Article X is in addition to and shall be cumulative with
all liabilities of each Loan Party to the Administrative Agent, the Issuing
Bank and the Lenders under this Agreement and the other Loan Documents to which
such Loan Party is a party or in respect of any obligations or liabilities of
the other Loan Parties, without any limitation as to amount, unless the
instrument or agreement evidencing or creating such other liability
specifically provides to the contrary.

[The
remainder of this page is blank. 
Signature pages follow.]

 129
 

 

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

	
  

  	
  INDALEX HOLDINGS FINANCE, INC.,

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Michael Alger

  	
   

  
	
   

  	
   

  	
  Name:  Michael
  Alger

  
	
   

  	
   

  	
  Title:    CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INDALEX HOLDING CORP., as Parent Borrower,

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Michael Alger

  	
   

  
	
   

  	
   

  	
  Name:  Michael
  Alger

  
	
   

  	
   

  	
  Title:    CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  6461948 CANADA INC., as Canadian Subsidiary

  Borrower,

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Michael Alger

  	
   

  
	
   

  	
   

  	
  Name:  Michael
  Alger

  
	
   

  	
   

  	
  Title:    CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INDALEX INC., as a Subsidiary Loan Party,

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Michael Alger

  	
   

  
	
   

  	
   

  	
  Name:  Michael
  Alger

  
	
   

  	
   

  	
  Title:    CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DOLTON ALUMINUM COMPANY, INC., as a

  Subsidiary Loan Party,

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Michael Alger

  	
   

  
	
   

  	
   

  	
  Name:  Michael
  Alger

  
	
   

  	
   

  	
  Title:    CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CARADON LEBANON, INC., as a Subsidiary Loan Party,

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Michael Alger

  	
   

  
	
   

  	
   

  	
  Name:  Michael
  Alger

  
	
   

  	
   

  	
  Title:    CFO

  

 

 130
 

 

 

	
  

  	
  INDALEX LIMITED, as a Subsidiary Loan Party,

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Michael Alger

  	
   

  
	
   

  	
   

  	
  Name:  Michael
  Alger

  
	
   

  	
   

  	
  Title:    CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INDALEX HOLDINGS (B.C.) LTD., as a Subsidiary

  Loan Party,

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Michael Alger

  	
   

  
	
   

  	
   

  	
  Name:  Michael
  Alger

  
	
   

  	
   

  	
  Title:    CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  6326765 CANADA INC., as a Subsidiary Loan Party,

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Michael Alger

  	
   

  
	
   

  	
   

  	
  Name:  Michael
  Alger

  
	
   

  	
   

  	
  Title:    CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NOVAR INC., as a Subsidiary Loan Party,

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Michael Alger

  	
   

  
	
   

  	
   

  	
  Name:  Michael
  Alger

  
	
   

  	
   

  	
  Title:    CFO

  

 

 131
 

 

 

	
  

  	
  JPMORGAN CHASE BANK, N.A., individually, as

  Administrative Agent, Issuing Bank and Swingline

  Lender,

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Peter S. Predun

  	
   

  
	
   

  	
   

  	
  Name:  Peter
  S. Predun

  
	
   

  	
   

  	
  Title:    Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A., TORONTO

  BRANCH, as Canadian Lending Office for the

  Administrative Agent, Issuing Bank and Swingline

  Lender,

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Christine Chan

  	
   

  
	
   

  	
   

  	
  Name:  Christine
  Chan

  
	
   

  	
   

  	
  Title:    Vice
  President

  

 

 132
 

 

 

	
  

  	
  SIGNATURE PAGE TO CREDIT AGREEMENT

  DATED AS OF FEBRUARY 2, 2006, AMONG

  INDALEX HOLDINGS FINANCE, INC., INDALEX

  HOLDING CORP., 6461948 CANADA INC., THE

  SUBSIDIARIES OF INDALEX HOLDING CORP.

  PARTY THERETO, THE LENDERS PARTY

  THERETO, JPMORGAN CHASE BANK, N.A.,

  AS ADMINISTRATIVE AGENT, AND JPMORGAN 

  CHASE BANK, N.A., TORONTO BRANCH, AS 

  CANADIAN LENDING OFFICE OF THE 

  ADMINISTRATIVE AGENT, ISSUING BANK AND SWINGLINE LENDER.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name of
  Institution:

  
	
   

  	
   

  
	
   

  	
  Bank of America, N.A.

  
	
   

  	
  (acting through
  its Canada branch)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ L.M. Junior
  Del Brocco

  
	
   

  	
   

  	
  Name:  L.M.
  Junior Del Brocco

  
	
   

  	
   

  	
  Title:    Senior
  Vice President

  

 

 133
 

 

 

	
  

  	
  SIGNATURE PAGE TO CREDIT AGREEMENT DATED
  AS OF FEBRUARY 2, 2006, AMONG INDALEX HOLDINGS FINANCE, INC., INDALEX HOLDING
  CORP., 6461948 CANADA INC., THE SUBSIDIARIES OF INDALEX HOLDING CORP. PARTY
  THERETO, THE LENDERS PARTY THERETO, AND JPMORGAN CHASE BANK, N.A., AS
  ADMINISTRATIVE AGENT, AND JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, AS
  CANADIAN LENDING OFFICE OF THE ADMINISTRATIVE AGENT, ISSUING BANK AND
  SWINGLINE LENDER.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name of
  Institution:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LASALLE BUSINESS CREDIT, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Thomas J. Brennan

  
	
   

  	
   

  	
  Name:  Thomas J. Brennan

  
	
   

  	
   

  	
  Title:     First Vice President

  

 134
 

 

 

	
  

  	
  SIGNATURE PAGE TO CREDIT AGREEMENT DATED
  AS OF FEBRUARY 2, 2006, AMONG INDALEX HOLDINGS FINANCE, INC., INDALEX HOLDING
  CORP., 6461948 CANADA INC., THE SUBSIDIARIES OF INDALEX HOLDING CORP. PARTY
  THERETO, THE LENDERS PARTY THERETO, AND JPMORGAN CHASE BANK, N.A., AS
  ADMINISTRATIVE AGENT, AND JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, AS
  CANADIAN LENDING OFFICE OF THE ADMINISTRATIVE AGENT, ISSUING BANK AND
  SWINGLINE LENDER.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name of
  Institution:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Bank of Montreal

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Ben Ciallella

  
	
   

  	
   

  	
  Name:  Ben Ciallella

  
	
   

  	
   

  	
  Title:    Vice President

  

 135
 

 

 

	
  

  	
  SIGNATURE PAGE TO CREDIT AGREEMENT DATED
  AS OF FEBRUARY 2, 2006, AMONG INDALEX HOLDINGS FINANCE, INC., INDALEX HOLDING
  CORP., 6461948 CANADA INC., THE SUBSIDIARIES OF INDALEX HOLDING CORP. PARTY
  THERETO, THE LENDERS PARTY THERETO, AND JPMORGAN CHASE BANK, N.A., AS
  ADMINISTRATIVE AGENT, AND JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, AS
  CANADIAN LENDING OFFICE OF THE ADMINISTRATIVE AGENT, ISSUING BANK AND
  SWINGLINE LENDER.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name of
  Institution:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Bank of Montreal

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Lynne Ciaccia

  
	
   

  	
   

  	
  Name:  Lynne Ciaccia

  
	
   

  	
   

  	
  Title:    Director

  

 136
 

 

 

	
  

  	
  SIGNATURE PAGE TO CREDIT AGREEMENT DATED
  AS OF FEBRUARY 2, 2006, AMONG INDALEX HOLDINGS FINANCE, INC., INDALEX HOLDING
  CORP., 6461948 CANADA INC., THE SUBSIDIARIES OF INDALEX HOLDING CORP. PARTY
  THERETO, THE LENDERS PARTY THERETO, AND JPMORGAN CHASE BANK, N.A., AS
  ADMINISTRATIVE AGENT, AND JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, AS
  CANADIAN LENDING OFFICE OF THE ADMINISTRATIVE AGENT, ISSUING BANK AND
  SWINGLINE LENDER.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name of
  Institution:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  The CIT Group/Business Credit, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ [Illegible]

  
	
   

  	
   

  	
  Name:  [Illegible]

  
	
   

  	
   

  	
  Title:    Senior Vice President

  
	
   

  	
   

  	
   

  

 137
 

 

 

	
  

  	
  SIGNATURE PAGE TO CREDIT AGREEMENT DATED
  AS OF FEBRUARY 2, 2006, AMONG INDALEX HOLDINGS FINANCE, INC., INDALEX HOLDING
  CORP., 6461948 CANADA INC., THE SUBSIDIARIES OF INDALEX HOLDING CORP. PARTY
  THERETO, THE LENDERS PARTY THERETO, AND JPMORGAN CHASE BANK, N.A., AS
  ADMINISTRATIVE AGENT, AND JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, AS
  CANADIAN LENDING OFFICE OF THE ADMINISTRATIVE AGENT, ISSUING BANK AND
  SWINGLINE LENDER.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name of
  Institution:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CIT Financial Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ [Illegible]

  	 

	
   

  	
   

  	
  Name:  [Illegible]

  	 

	
   

  	
   

  	
  Title:    President

  	 

 138
 

 

 

	
  

  	
  SIGNATURE PAGE TO CREDIT AGREEMENT DATED
  AS OF FEBRUARY 2, 2006, AMONG INDALEX HOLDINGS FINANCE, INC., INDALEX HOLDING
  CORP., 6461948 CANADA INC., THE SUBSIDIARIES OF INDALEX HOLDING CORP. PARTY
  THERETO, THE LENDERS PARTY THERETO, AND JPMORGAN CHASE BANK, N.A., AS
  ADMINISTRATIVE AGENT, AND JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, AS
  CANADIAN LENDING OFFICE OF THE ADMINISTRATIVE AGENT, ISSUING BANK AND SWINGLINE
  LENDER.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name of
  Institution:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LaSalle Business Credit, a division of
  ABN Amro 

  Bank N.V., Canada Branch

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Darcy Mack

  	 

	
   

  	
   

  	
  Name:  Darcy Mack

  	 

	
   

  	
   

  	
  Title:    First Vice President

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  By

  	
  /s/ Barry Walsh

  	 

	
   

  	
   

  	
  Name:  Barry Walsh

  	 

	
   

  	
   

  	
  Title:    Vice President

  	 

	
   

  	
   

  	
   

  	 

 139
 

 

 

	
  

  	
  SIGNATURE PAGE TO CREDIT AGREEMENT DATED
  AS OF FEBRUARY 2, 2006, AMONG INDALEX HOLDINGS FINANCE, INC., INDALEX HOLDING
  CORP., 6461948 CANADA INC., THE SUBSIDIARIES OF INDALEX HOLDING CORP. PARTY THERETO,
  THE LENDERS PARTY THERETO, AND JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE
  AGENT, AND JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, AS CANADIAN LENDING
  OFFICE OF THE ADMINISTRATIVE AGENT, ISSUING BANK AND SWINGLINE LENDER.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name of
  Institution:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Wachovia Capital Finance Corporation
  (Central)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Gerard C. Wordell

  
	
   

  	
   

  	
  Name:  Gerard C. Wordell

  
	
   

  	
   

  	
  Title:    Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:  

  
	
   

  	
   

  	
  Title:    

  
	
   

  	
   

  	
   

  

 140
 

 

 

	
  

  	
  SIGNATURE PAGE TO CREDIT AGREEMENT DATED
  AS OF FEBRUARY 2, 2006, AMONG INDALEX HOLDINGS FINANCE, INC., INDALEX HOLDING
  CORP., 6461948 CANADA INC., THE SUBSIDIARIES OF INDALEX HOLDING CORP. PARTY
  THERETO, THE LENDERS PARTY THERETO, AND JPMORGAN CHASE BANK, N.A., AS
  ADMINISTRATIVE AGENT, AND JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, AS
  CANADIAN LENDING OFFICE OF THE ADMINISTRATIVE AGENT, ISSUING BANK AND
  SWINGLINE LENDER.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name of
  Institution:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Wachovia Capital Finance Corporation
  (Canada)

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Niali Hamilton

  
	
   

  	
   

  	
  Name:  Niali Hamilton

  
	
   

  	
   

  	
  Title:    Senior Vice President

  
	
   

  	
   

  	
   

  
				

 141
 

 

 

	
  

  	
  SIGNATURE PAGE TO CREDIT AGREEMENT DATED
  AS OF FEBRUARY 2, 2006, AMONG INDALEX HOLDINGS FINANCE, INC., INDALEX HOLDING
  CORP., 6461948 CANADA INC., THE SUBSIDIARIES OF INDALEX HOLDING CORP. PARTY
  THERETO, THE LENDERS PARTY THERETO, AND JPMORGAN CHASE BANK, N.A., AS
  ADMINISTRATIVE AGENT, AND JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, AS
  CANADIAN LENDING OFFICE OF THE ADMINISTRATIVE AGENT, ISSUING BANK AND
  SWINGLINE LENDER.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name of
  Institution:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Bank of America, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Blair K. Mertens

  
	
   

  	
   

  	
  Name:  Blair K. Mertens

  
	
   

  	
   

  	
  Title:    VP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ James Belanger

  
	
   

  	
   

  	
  Name:  James Belanger

  
	
   

  	
   

  	
  Title:    VP

  
	
   

  	
   

  	
   

  

 142
 

 

 

	
  

  	
  SIGNATURE PAGE TO CREDIT AGREEMENT DATED
  AS OF FEBRUARY 2, 2006, AMONG INDALEX HOLDINGS FINANCE, INC., INDALEX HOLDING
  CORP., 6461948 CANADA INC., THE SUBSIDIARIES OF INDALEX HOLDING CORP. PARTY
  THERETO, THE LENDERS PARTY THERETO, AND JPMORGAN CHASE BANK, N.A., AS
  ADMINISTRATIVE AGENT, AND JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, AS
  CANADIAN LENDING OFFICE OF THE ADMINISTRATIVE AGENT, ISSUING BANK AND
  SWINGLINE LENDER.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name of
  Institution:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ [Illegible]

  
	
   

  	
   

  	
  Name:  [Illegible]

  
	
   

  	
   

  	
  Title:    Its Duly Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Jack F. Morrone

  
	
   

  	
   

  	
  Name:  Jack F. Morrone

  
	
   

  	
   

  	
  Title:    Senior Vice President, GE Canada Finance

  Holding Company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 143
 

 

 

	
  

  	
  SIGNATURE PAGE TO CREDIT AGREEMENT DATED
  AS OF FEBRUARY 2, 2006, AMONG INDALEX HOLDINGS FINANCE, INC., INDALEX HOLDING
  CORP., 6461948 CANADA INC., THE SUBSIDIARIES OF INDALEX HOLDING CORP. PARTY
  THERETO, THE LENDERS PARTY THERETO, AND JPMORGAN CHASE BANK, N.A., AS
  ADMINISTRATIVE AGENT, AND JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, AS
  CANADIAN LENDING OFFICE OF THE ADMINISTRATIVE AGENT, ISSUING BANK AND
  SWINGLINE LENDER.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name of
  Institution:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Wells Fargo Foothill, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Rina Shinoda

  
	
   

  	
   

  	
  Name:  Rina Shinoda

  
	
   

  	
   

  	
  Title:    Vice President

  

 

 144
 

 

 

	
  

  	
  SIGNATURE PAGE TO CREDIT AGREEMENT DATED
  AS OF FEBRUARY 2, 2006, AMONG INDALEX HOLDINGS FINANCE, INC., INDALEX HOLDING
  CORP., 6461948 CANADA INC., THE SUBSIDIARIES OF INDALEX HOLDING CORP. PARTY
  THERETO, THE LENDERS PARTY THERETO, AND JPMORGAN CHASE BANK, N.A., AS
  ADMINISTRATIVE AGENT, AND JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, AS
  CANADIAN LENDING OFFICE OF THE ADMINISTRATIVE AGENT, ISSUING BANK AND
  SWINGLINE LENDER.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name of Institution:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Wells Fargo Financial Corporation
  Canada

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Nick Scarfo

  
	
   

  	
   

  	
  Name:  Nick Scarfo

  
	
   

  	
   

  	
  Title:    Vice President

  

 

 145

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]