Document:

EX-10.1 CREDIT AGREEMENT

 

Exhibit 10.1

EXECUTION COPY

$405,000,000

CREDIT AGREEMENT

among

CARMIKE CINEMAS, INC.,

as Borrower,

The Several Lenders

from Time to Time Parties Hereto,

WELLS FARGO FOOTHILL, INC.,

as Documentation Agent,

and

BEAR STEARNS CORPORATE LENDING INC.,

as Administrative Agent

Dated as of May 19, 2005

BEAR, STEARNS & CO. INC., as Sole Lead Arranger and Sole Bookrunner

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 1. DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 
	1.1.
	 	Defined Terms	 	 	1	 
	1.2.
	 	Other Definitional Provisions	 	 	24	 
	 
	 	 	 	 	 	 
	SECTION 2. AMOUNT AND TERMS OF TERM COMMITMENTS	 	 	25	 
	 
	 	 	 	 	 	 
	2.1.
	 	Term Commitments	 	 	25	 
	2.2.
	 	Procedure for Term Loan Borrowing	 	 	25	 
	2.3.
	 	Repayment of Term Loans	 	 	26	 
	2.4.
	 	Termination or Reduction of Delayed-Draw Term Commitments	 	 	27	 
	 
	 	 	 	 	 	 
	SECTION 3. AMOUNT AND TERMS OF REVOLVING COMMITMENTS	 	 	27	 
	 
	 	 	 	 	 	 
	3.1.
	 	Revolving Commitments	 	 	27	 
	3.2.
	 	Procedure for Revolving Loan Borrowing	 	 	27	 
	3.3.
	 	Swingline Commitment	 	 	28	 
	3.4.
	 	Procedure for Swingline Borrowing; Refunding of Swingline Loans	 	 	28	 
	3.5.
	 	Commitment Fees, etc.	 	 	30	 
	3.6.
	 	Termination or Reduction of Revolving Commitments	 	 	31	 
	3.7.
	 	L/C Commitment	 	 	31	 
	3.8.
	 	Procedure for Issuance of Letter of Credit	 	 	31	 
	3.9.
	 	Fees and Other Charges	 	 	32	 
	3.10.
	 	L/C Participations	 	 	32	 
	3.11.
	 	Reimbursement Obligation of the Borrower	 	 	33	 
	3.12.
	 	Obligations Absolute	 	 	34	 
	3.13.
	 	Letter of Credit Payments	 	 	34	 
	3.14.
	 	Applications; L/C Issuance Side Letter	 	 	34	 
	 
	 	 	 	 	 	 
	SECTION 4. GENERAL PROVISIONS APPLICABLE TO LOANS AND LETTERS OF CREDIT	 	 	34	 
	 
	 	 	 	 	 	 
	4.1.
	 	Optional Prepayments	 	 	34	 
	4.2.
	 	Mandatory Prepayments and Commitment Reductions	 	 	35	 
	4.3.
	 	Conversion and Continuation Options	 	 	36	 
	4.4.
	 	Limitations on Eurodollar Tranches	 	 	37	 
	4.5.
	 	Interest Rates and Payment Dates	 	 	37	 
	4.6.
	 	Computation of Interest and Fees	 	 	37	 
	4.7.
	 	Inability to Determine Interest Rate	 	 	38	 
	4.8.
	 	Pro Rata Treatment and Payments	 	 	38	 
	4.9.
	 	Requirements of Law	 	 	40	 
	4.10.
	 	Taxes	 	 	41	 
	4.11.
	 	Indemnity	 	 	43	 
	4.12.
	 	Change of Lending Office	 	 	43	 

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	 	 	 	 	Page	 
	4.13.
	 	Replacement of Lenders	 	 	44	 
	4.14.
	 	Evidence of Debt	 	 	44	 
	4.15.
	 	Illegality	 	 	44	 
	4.16.
	 	Increase in Term Loans and Revolving Commitments	 	 	45	 
	 
	 	 	 	 	 	 
	SECTION 5. REPRESENTATIONS AND WARRANTIES	 	 	46	 
	 
	 	 	 	 	 	 
	5.1.
	 	Financial Condition	 	 	47	 
	5.2.
	 	No Change	 	 	47	 
	5.3.
	 	Corporate Existence; Compliance with Law	 	 	47	 
	5.4.
	 	Power; Authorization; Enforceable Obligations	 	 	48	 
	5.5.
	 	No Legal Bar	 	 	48	 
	5.6.
	 	Litigation	 	 	48	 
	5.7.
	 	No Default	 	 	49	 
	5.8.
	 	Ownership of Property; Liens	 	 	49	 
	5.9.
	 	Intellectual Property	 	 	49	 
	5.10.
	 	Taxes	 	 	49	 
	5.11.
	 	Federal Regulations	 	 	49	 
	5.12.
	 	Labor Matters	 	 	49	 
	5.13.
	 	ERISA	 	 	50	 
	5.14.
	 	Investment Company Act; Other Regulations	 	 	50	 
	5.15.
	 	Subsidiaries	 	 	50	 
	5.16.
	 	Use of Proceeds	 	 	50	 
	5.17.
	 	Environmental Matters	 	 	51	 
	5.18.
	 	Accuracy of Information, etc.	 	 	51	 
	5.19.
	 	Security Documents	 	 	52	 
	5.20.
	 	Solvency	 	 	53	 
	5.21.
	 	Senior Indebtedness	 	 	53	 
	5.22.
	 	Regulation H	 	 	53	 
	5.23.
	 	Certain Documents	 	 	53	 
	 
	 	 	 	 	 	 
	SECTION 6. CONDITIONS PRECEDENT	 	 	53	 
	 
	 	 	 	 	 	 
	6.1.
	 	Conditions to Initial Extension of Credit	 	 	53	 
	6.2.
	 	Conditions to Each Extension of Credit	 	 	56	 
	 
	 	 	 	 	 	 
	SECTION 7. AFFIRMATIVE COVENANTS	 	 	57	 
	 
	 	 	 	 	 	 
	7.1.
	 	Financial Statements	 	 	57	 
	7.2.
	 	Certificates; Other Information	 	 	57	 
	7.3.
	 	Payment of Obligations	 	 	59	 
	7.4.
	 	Maintenance of Existence; Compliance	 	 	59	 
	7.5.
	 	Maintenance of Property; Insurance	 	 	59	 
	7.6.
	 	Inspection of Property; Books and Records; Discussions	 	 	60	 
	7.7.
	 	Notices	 	 	60	 
	7.8.
	 	Environmental Laws	 	 	60	 
	7.9.
	 	Interest Rate Protection	 	 	61	 

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	 	 	 	 	Page	 
	7.10.
	 	Landlord Consents	 	 	61	 
	7.11.
	 	Additional Collateral, etc.	 	 	61	 
	7.12.
	 	Further Assurances	 	 	63	 
	7.13.
	 	Cash Management	 	 	63	 
	7.14.
	 	Mortgages, etc.	 	 	64	 
	 
	 	 	 	 	 	 
	SECTION 8. NEGATIVE COVENANTS	 	 	65	 
	 
	 	 	 	 	 	 
	8.1.
	 	Financial Condition Covenants	 	 	65	 
	8.2.
	 	Indebtedness	 	 	66	 
	8.3.
	 	Liens	 	 	68	 
	8.4.
	 	Fundamental Changes	 	 	70	 
	8.5.
	 	Disposition of Property	 	 	70	 
	8.6.
	 	Restricted Payments	 	 	71	 
	8.7.
	 	Capital Expenditures	 	 	71	 
	8.8.
	 	Investments	 	 	71	 
	8.9.
	 	Optional Payments and Modifications of Certain Debt Instruments	 	 	72	 
	8.10.
	 	Transactions with Affiliates	 	 	73	 
	8.11.
	 	Sales and Leasebacks	 	 	73	 
	8.12.
	 	Hedge Agreements	 	 	73	 
	8.13.
	 	Changes in Fiscal Periods	 	 	73	 
	8.14.
	 	Negative Pledge Clauses	 	 	73	 
	8.15.
	 	Clauses Restricting Subsidiary Distributions	 	 	74	 
	8.16.
	 	Lines of Business	 	 	74	 
	8.17.
	 	Amendments to Acquisition Documents	 	 	74	 
	8.18.
	 	Leases	 	 	74	 
	 
	 	 	 	 	 	 
	SECTION 9. EVENTS OF DEFAULT	 	 	75	 
	 
	 	 	 	 	 	 
	SECTION 10. THE AGENTS	 	 	78	 
	 
	 	 	 	 	 	 
	10.1.
	 	Appointment	 	 	78	 
	10.2.
	 	Delegation of Duties	 	 	78	 
	10.3.
	 	Exculpatory Provisions	 	 	78	 
	10.4.
	 	Reliance by Agents	 	 	79	 
	10.5.
	 	Notice of Default	 	 	79	 
	10.6.
	 	Non-Reliance on Agents and Other Lenders	 	 	79	 
	10.7.
	 	Indemnification	 	 	80	 
	10.8.
	 	Agent in Its Individual Capacity	 	 	80	 
	10.9.
	 	Successor Administrative Agent	 	 	80	 
	10.10.
	 	Agents Generally	 	 	81	 
	10.11.
	 	The Lead Arranger and Documentation Agent	 	 	81	 
	 
	 	 	 	 	 	 
	SECTION 11. MISCELLANEOUS	 	 	81	 
	 
	 	 	 	 	 	 
	11.1.
	 	Amendments and Waivers	 	 	81	 
	11.2.
	 	Notices and Communications	 	 	83	 

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	 	 	 	 	Page	 
	11.3.
	 	No Waiver; Cumulative Remedies	 	 	84	 
	11.4.
	 	Survival of Representations and Warranties	 	 	84	 
	11.5.
	 	Payment of Expenses and Taxes	 	 	84	 
	11.6.
	 	Successors and Assigns; Participations and Assignments	 	 	85	 
	11.7.
	 	Adjustments; Set-off	 	 	88	 
	11.8.
	 	Counterparts	 	 	89	 
	11.9.
	 	Severability	 	 	89	 
	11.10.
	 	Integration	 	 	89	 
	11.11.
	 	GOVERNING LAW	 	 	89	 
	11.12.
	 	Submission To Jurisdiction; Waivers	 	 	90	 
	11.13.
	 	Acknowledgments	 	 	90	 
	11.14.
	 	Releases of Guarantees and Liens	 	 	90	 
	11.15.
	 	Confidentiality	 	 	91	 
	11.16.
	 	WAIVERS OF JURY TRIAL	 	 	91	 
	11.17.
	 	Delivery of Addenda	 	 	91	 

	 	 	 
	ANNEX:
	 	 
	 
	 	 
	A

	 	Pricing Grid
	 
	 	 
	SCHEDULES:
	 	 
	 
	 	 
	1.1

	 	Mortgaged Property
	5.4

	 	Consents, Authorizations, Filings and Notices
	5.15

	 	Subsidiaries
	5.19(a)

	 	UCC Filing Jurisdictions
	5.19(b)(i)

	 	Mortgage Filing Jurisdictions
	5.19(b)(ii)

	 	Material Real Property
	8.2(d)

	 	Existing Indebtedness
	8.3(f)

	 	Existing Liens
	 
	 	 
	EXHIBITS:
	 	 
	 
	 	 
	A

	 	Form of Addendum
	B

	 	Form of Assignment and Assumption
	C

	 	Form of Compliance Certificate
	D

	 	Form of Guarantee and Collateral Agreement
	E

	 	Form of Mortgage
	F

	 	Form of Exemption Certificate
	G

	 	Form of Closing Certificate
	H-1

	 	Form of Legal Opinion of King & Spalding LLP
	H-2

	 	Form of Legal Opinion of Page, Scrantom, Sprouse, Tucker & Ford, P.C.
	I

	 	Form of Delayed-Draw Activation Notice

-iv-

 

                    CREDIT AGREEMENT, dated as of May 19, 2005, among CARMIKE CINEMAS, INC., a Delaware
corporation (the “Borrower”), the several banks and other financial institutions or
entities from time to time parties to this Agreement (the “Lenders”), BEAR, STEARNS & CO.
INC., as sole lead arranger and sole bookrunner (in such capacity, the “Lead Arranger”),
WELLS FARGO FOOTHILL, INC., as documentation agent (in such capacity, the “Documentation
Agent”), and BEAR STEARNS CORPORATE LENDING INC., as administrative agent (in such capacity,
the “Administrative Agent”).

                    The parties hereto hereby agree as follows:

SECTION 1. DEFINITIONS

     1.1. Defined Terms. As used in this Agreement, the terms listed in this
Section 1.1 shall have the respective meanings set forth in this Section 1.1.

                    “Acquisition”: the acquisition by the Borrower of all of the Capital Stock of the
Target pursuant to the Acquisition Agreement.

                    “Acquisition Agreement”: the Stock Purchase Agreement, dated April 19, 2005, between
the Borrower and the shareholders of the Target.

                    “Acquisition Documentation”: collectively, the Acquisition Agreement and all
schedules, exhibits and annexes thereto and all side letters and agreements among the parties
thereto affecting the terms thereof or entered into in connection therewith.

                    “Addendum”: an instrument, substantially in the form of Exhibit A, by which a Lender
becomes a party to this Agreement as of the Closing Date.

                    “Adjustment Date”: as defined in the Pricing Grid.

                    “Administrative Agent”: as defined in the recitals to this Agreement.

                    “Affiliate”: as to any Person, any other Person that, directly or indirectly, is in
control of, is controlled by, or is under common control with, such Person. For purposes of this
definition, “control” of a Person means the power, directly or indirectly, either to (a) vote 10%
or more of the securities having ordinary voting power for the election of directors (or persons
performing similar functions) of such Person or (b) direct or cause the direction of the management
and policies of such Person, whether by contract or otherwise.

                    “Agents”: the collective reference to the Documentation Agent, the Lead Arranger and
the Administrative Agent, which term shall include, for purposes of Section 10 only, the Issuing
Lender and the Swingline Lender.

                    “Aggregate Exposure”: with respect to any Lender at any time, an amount equal to (a)
until the Closing Date, the aggregate amount of such Lender’s Commitments at such time and (b)
thereafter, the sum of (i) the aggregate then unpaid principal amount of such Lender’s
Term Loans, (ii) the amount of such Lender’s Revolving Commitment then in effect or, if the
Revolving Commitments have been terminated, the amount of such Lender’s Revolving

 

 

2

Extensions of
Credit then outstanding and (iii) the amount of such Lender’s Available Delayed-Draw Term
Commitment then in effect.

                    “Aggregate Exposure Percentage”: with respect to any Lender at any time, the ratio
(expressed as a percentage) of such Lender’s Aggregate Exposure at such time to the Aggregate
Exposure of all Lenders at such time.

                    “Agreement”: this Credit Agreement.

                    “Applicable Margin”: for each Type of Loan, the rate per annum set forth under the
relevant column heading below, subject to Section 4.16(a):

	 	 	 	 	 	 	 	 	 
	 	 	Eurodollar Loans	 	 	Base Rate Loans	 
	Revolving Loans
	 	 	2.25	%	 	 	1.25	%
	Term Loans
(other than Other Term Loans)
	 	 	2.50	%	 	 	1.50	%

; provided, that, on and after the first Adjustment Date (as defined in the Pricing Grid)
occurring after the date which is six months after the Closing Date, the Applicable Margin with
respect to Revolving Loans and Swingline Loans will be determined pursuant to the Pricing Grid.

                    “Application”: an application, in such form as the Issuing Lender may specify from
time to time, requesting the Issuing Lender to issue a Letter of Credit.

                    “Approved Fund”: with respect to any Lender that is a fund that invests in commercial
loans, any other fund that invests in commercial loans in the ordinary course of its business and
is managed or advised by the same investment advisor as such Lender or by an Affiliate of such
investment advisor.

                    “Asset Sale”: any Disposition of Property or series of related Dispositions of
Property (excluding any such Disposition permitted by clause (a), (b), (c) or (d) of Section 8.5,
but including any Disposition pursuant to a sale and leaseback transaction permitted by Section
8.11) that yields gross proceeds to any Group Member (valued at the initial principal amount
thereof in the case of non-cash proceeds consisting of notes or other debt securities and valued at
fair market value (as determined in good faith by the Borrower) in the case of other non-cash
proceeds) in excess of $1,000,000.

                    “Assignee”: as defined in Section 11.6(b).

                    “Assignment and Assumption”: an Assignment and Assumption, substantially in the form
of Exhibit B.

                    “Available Delayed-Draw Term Commitment”: as to any Delayed-Draw Term Lender at any
time, an amount equal to the excess, if any, of (a) such Lender’s Delayed-Draw
Term Commitment then in effect over (b) such Lender’s Delayed-Draw Term Loans then
outstanding.

 

 

3

                    “Available Revolving Commitment”: as to any Revolving Lender at any time, an amount
equal to the excess, if any, of (a) such Lender’s Revolving Commitment then in effect over
(b) such Lender’s Revolving Extensions of Credit then outstanding; provided that, in
calculating any Lender’s Revolving Extensions of Credit for the purpose of determining such
Lender’s Available Revolving Commitment pursuant to Section 3.5, the aggregate principal amount of
Swingline Loans then outstanding shall be deemed to be zero.

                    “Base Rate”: for any day, a rate per annum (rounded upwards, if necessary, to the
next 1/16 of 1%) 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 0.50%. For purposes hereof: “Prime
Rate” shall mean the rate of interest per annum publicly announced from time to time by the
Reference Lender 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 the Reference Lender in
connection with extensions of credit to debtors). Any change in the Base Rate due to a change in
the Prime 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 Prime Rate or the Federal Funds Effective Rate,
respectively.

                    “Base Rate Loans”: Loans the rate of interest applicable to which is based upon the
Base Rate.

                    “Benefitted Lender”: as defined in Section 11.7(a).

                    “Board”: the Board of Governors of the Federal Reserve System of the United States
(or any successor).

                    “Borrower”: as defined in the preamble to this Agreement.

                    “Borrowing Date”: any Business Day specified by the Borrower as a date on which the
Borrower requests the relevant Lenders to make Loans hereunder.

                    “Business”: as defined in Section 5.17(b).

                    “Business Day”: a day other than a Saturday, Sunday or other day on which commercial
banks in New York City or, to the extent in connection with any Letter of Credit, Los Angeles,
California, are authorized or required by law to close, provided, that with respect to
notices and determinations in connection with, and payments of principal and interest on,
Eurodollar Loans, such day is also a day for trading by and between banks in Dollar deposits in the
interbank eurodollar market.

                    “Capital Expenditures”: for any period, with respect to any Person, the aggregate of
all expenditures by such Person and its Subsidiaries that, in accordance with GAAP, are or should
be included in “purchase of property and equipment” or similar items reflected in the consolidated
statement of cash flows of the Borrower.

                    “Capital Lease Obligations”: as to any Person, 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

 

 

4

classified and
accounted for as capital leases on a balance sheet of such Person under GAAP and, for the purposes
of this Agreement, the amount of such obligations at any time shall be the capitalized amount
thereof at such time determined in accordance with GAAP.

                    “Capital Stock”: any and all shares, interests, participations or other equivalents
(however designated) of capital stock of a corporation, any and all equivalent ownership interests
in a Person (other than a corporation) and any and all warrants, rights or options to purchase any
of the foregoing.

                    “Cash Equivalents”: (a) marketable direct obligations issued by, or unconditionally
guaranteed by, the United States Government or issued by any agency thereof and backed by the full
faith and credit of the United States, in each case maturing within one year from the date of
acquisition; (b) certificates of deposit, time deposits, eurodollar time deposits or overnight bank
deposits having maturities of six months or less from the date of acquisition issued by any Lender
or by any commercial bank organized under the laws of the United States or any state thereof having
combined capital and surplus of not less than $500,000,000; (c) commercial paper of an issuer rated
at least A-1 by Standard & Poor’s Ratings Services (“S&P”) or P-1 by Moody’s Investors
Service, Inc. (“Moody’s”), or carrying an equivalent rating by a nationally recognized
rating agency, if both of the two named rating agencies cease publishing ratings of commercial
paper issuers generally, and maturing within six months from the date of acquisition; (d)
repurchase obligations of any Lender or of any commercial bank satisfying the requirements of
clause (b) of this definition, having a term of not more than 30 days, with respect to securities
issued or fully guaranteed or insured by the United States government; (e) securities with
maturities of one year or less from the date of acquisition issued or fully guaranteed by any
state, commonwealth or territory of the United States, by any political subdivision or taxing
authority of any such state, commonwealth or territory or by any foreign government, the securities
of which state, commonwealth, territory, political subdivision, taxing authority or foreign
government (as the case may be) are rated at least A by S&P or A by Moody’s; (f) securities with
maturities of six months or less from the date of acquisition backed by standby letters of credit
issued by any Lender or any commercial bank satisfying the requirements of clause (b) of this
definition; or (g) shares of money market mutual or similar funds which invest exclusively in
assets satisfying the requirements of clauses (a) through (f) of this definition or money market
funds that (i) comply with the criteria set forth in Securities and Exchange Commission Rule 2a-7
under the Investment Company Act of 1940, as amended, (ii) are rated AAA by S&P and Aaa by Moody’s
and (iii) have portfolio assets of at least $5,000,000,000.

                    “Closing Date”: the date on which the conditions precedent set forth in Section 6.1
shall have been satisfied or waived, which date is May 19, 2005.

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

                    “Coke Agreement”: the Marketing, Advertising and Brand Presence Agreement, dated as
of January 1, 2004, between Coca-Cola North America, a division of The Coca-Cola Company, and the
Borrower, as amended through the date hereof.

 

 

5

                    “Collateral”: all property of the Loan Parties, now owned or hereafter acquired, upon
which a Lien is purported to be created by any Security Document.

                    “Commitment”: as to any Lender, the sum of the Initial Term Commitment, the
Delayed-Draw Term Commitment and the Revolving Commitment of such Lender.

                    “Commitment Fee Rate”: 0.50% per annum.

                    “Commonly Controlled Entity”: an entity, whether or not incorporated, that is under
common control with the Borrower within the meaning of Section 4001 of ERISA or is part of a group
that includes the Borrower and that is treated as a single employer under Section 414 of the Code.

                    “Compliance Certificate”: a certificate duly executed by a Responsible Officer
substantially in the form of Exhibit C.

                    “Conduit Lender”: any special purpose entity organized and administered by any Lender
for the purpose of making Loans otherwise required to be made by such Lender and designated by such
Lender in a written instrument, subject to the consent of the Administrative Agent and the Borrower
(which consent shall not be unreasonably withheld); provided, that the designation by any
Lender of a Conduit Lender shall not relieve the designating Lender of any of its obligations to
fund a Loan under this Agreement if, for any reason, its Conduit Lender fails to fund any such
Loan, and the designating Lender (and not the Conduit Lender) shall have the sole right and
responsibility to deliver all consents and waivers required or requested under this Agreement with
respect to its Conduit Lender, and provided, further, that no Conduit Lender shall
(a) be entitled to receive any greater amount pursuant to Section 4.9, 4.10, 4.11 or 11.5 than the
designating Lender would have been entitled to receive in respect of the extensions of credit made
by such Conduit Lender or (b) be deemed to have any Commitment.

                    “Confidential Information Memorandum”: the Confidential Information Memorandum dated
April 2005 and furnished to the Lenders, as supplemented and revised from time to time in writing
and delivered to the Lenders prior to the Closing Date.

                    “Consolidated Current Assets”: at any date, all amounts (other than cash and Cash
Equivalents) that would, in conformity with GAAP, be set forth opposite the caption “total current
assets” (or any like caption) on a consolidated balance sheet of the Borrower and its Subsidiaries
at such date.

                    “Consolidated Current Liabilities”: at any date, all amounts that would, in
conformity with GAAP, be set forth opposite the caption “total current liabilities” (or any like
caption) on a consolidated balance sheet of the Borrower and its Subsidiaries at such date, but
excluding (a) the current portion of any Funded Debt of the Borrower and its Subsidiaries and (b)
without duplication of clause (a) above, all Indebtedness consisting of Revolving Loans or
Swingline Loans to the extent otherwise included therein.

                    “Consolidated EBITDA”: for any period, Consolidated Net Income for such period
plus, without duplication and to the extent reflected as a charge in the statement of such
Consolidated Net Income for such period, the sum of (a) provisions for income tax, franchise tax

 

 

6

and net worth tax (including all single business tax expense imposed by state law, (b) 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 (including the Loans
and Letters of Credit), capitalized interest, the interest component of any deferred payment
obligation, and any interest on Indebtedness of another Person guaranteed by such Person or secured
by a Lien on its assets, (c) depreciation and amortization expense, (d) amortization of intangibles
(including, but not limited to, goodwill) and organization costs, (e) any extraordinary charges or
losses determined in accordance with GAAP, (f) non-cash compensation expenses arising from the
issuance of stock, options to purchase stock and stock appreciation rights to the management of the
Borrower, (g) restructuring charges (provided, that with respect to each such restructuring
charge the Borrower shall have delivered to the Administrative Agent an officer’s certificate
specifying and
quantifying such restructuring charge), (h) any asset impairment charges and other
non-cash charges, non-cash expenses or non-cash losses of the Borrower or any of its Subsidiaries
for such period (excluding any such charge, expense or loss incurred in the ordinary course of
business that constitutes an accrual of or a reserve for cash charges for any future period),
provided, however, that cash payments made in such period or in any future period
in respect of such restructuring charges, non-cash charges, expenses or losses (excluding any such
charge, expense or loss incurred in the ordinary course of business that constitutes an accrual of
or a reserve for cash charges for any future period) shall be subtracted from Consolidated Net
Income in calculating Consolidated EBITDA in the period when such cash payments are made, and (i)
transaction fees, costs, and expenses incurred in connection with the Acquisition, any other
Permitted Acquisitions, offerings of debt or equity securities, investments, mergers,
recapitalizations, option buyouts and asset sales, in each case to the extent expensed,
minus, to the extent included in the statement of such Consolidated Net Income for such
period, the sum of (a) interest income, (b) any extraordinary income or gains determined in
accordance with GAAP and (c) any other non-cash income (excluding any items that represent the
reversal of any accrual of, or cash reserve for, anticipated cash charges in any prior period that
are described in the parenthetical to clause (h) above), all as determined on a consolidated basis.
For the purposes of calculating Consolidated EBITDA for any period of four consecutive fiscal
quarters (each, a “Reference Period”) pursuant to any determination of the Consolidated
Leverage Ratio, (i) if at any time during such Reference Period the Borrower or any Subsidiary
shall have made any Material Disposition, the Consolidated EBITDA for such Reference Period shall
be reduced by an amount equal to the Consolidated EBITDA (if positive) attributable to the property
that is the subject of such Material Disposition for such Reference Period or increased by an
amount equal to the Consolidated EBITDA (if negative) attributable thereto for such Reference
Period and (ii) if during such Reference Period the Borrower or any Subsidiary shall have made a
Material Acquisition, Consolidated EBITDA for such Reference Period shall be calculated after
giving pro forma effect thereto as if such Material Acquisition occurred on the
first day of such Reference Period. Such pro forma calculations of Consolidated EBITDA in
connection with a Material Disposition or Material Acquisition (i) shall take into account any
related incurrence, assumption or repayment of Indebtedness, and (ii) may include operating and

other expense reductions and other adjustments for such period from the Acquisition or any
Permitted Acquisition that is being given pro forma effect to the extent such
reductions and adjustments would be permitted pursuant to Article XI or Regulation S-X under
the Securities Act of 1933; provided, that with respect to each such reduction and
adjustment the Borrower shall have delivered to the Administrative Agent an officer’s certificate
specifying and

 

 

7

quantifying such reduction or adjustment. As used in this definition, “Material
Acquisition” means the Acquisition and any other acquisition of property or series of related
acquisitions of property that (a) constitutes assets comprising all or substantially all of an
operating unit of a business or constitutes all or substantially all of the common stock of a
Person and (b) involves the payment of consideration by the Borrower and its Subsidiaries in excess
of $1,000,000; and “Material Disposition” means any Disposition of property or series of related
Dispositions of property that yields gross proceeds to the Borrower or any of its Subsidiaries in
excess of $1,000,000. Notwithstanding the foregoing, Consolidated EBITDA shall be deemed to be
$35,045,000, $24,796,000, $34,159,000 and $17,078,000 for the fiscal quarters ending June 30, 2004,
September 30, 2004, December 31, 2004 and March 31, 2005, respectively.

                    “Consolidated Interest Coverage Ratio”: for any period, the ratio of (a) Consolidated
EBITDA for such period to (b) Consolidated Interest Expense for such period.

                    “Consolidated Interest Expense”: for any period, total cash interest expense
(including that attributable to Capital Lease Obligations) of the Borrower and its Subsidiaries for
such period with respect to all outstanding Indebtedness of the Borrower and its Subsidiaries
(including all commissions, discounts and other fees and charges owed with respect to letters of
credit and bankers’ acceptance financing and net costs under Hedge Agreements in respect of
interest rates to the extent such net costs are allocable to such period in accordance with GAAP,
but excluding any prepayment premiums paid in connection with the repayment of the credit
facilities described in Section 6.1(b)(iii)).

                    “Consolidated Leverage Ratio”: at any time, the ratio of (a) Consolidated Total Debt
as of the last day of then most recently completed fiscal quarter to (b) Consolidated EBITDA for
the period of four consecutive fiscal quarters ended on such last day.

                    “Consolidated Net Income”: for any period, the consolidated net income (or loss) of
the Borrower and its Subsidiaries, determined on a consolidated basis in accordance with GAAP;
provided that there shall be excluded (a) the income (or deficit) of any Person accrued
prior to the date it becomes a Subsidiary of the Borrower or is merged into or consolidated with
the Borrower or any of its Subsidiaries, (b) the income (or deficit) of any Person (other than a
Subsidiary of the Borrower) in which the Borrower or any of its Subsidiaries has an ownership
interest, except to the extent that any such income is actually received by the Borrower or such
Subsidiary in the form of dividends or similar distributions and (c) the undistributed earnings of
any Subsidiary of the Borrower to the extent that the declaration or payment of dividends or
similar distributions by such Subsidiary is not at the time permitted by the terms of any
Contractual Obligation (other than under any Loan Document) or Requirement of Law applicable to
such Subsidiary.

                    “Consolidated Total Debt”: at any date, the aggregate principal amount of all
Indebtedness of the Borrower and its Subsidiaries at such date determined on a consolidated basis
in accordance with GAAP.

                    “Consolidated Working Capital”: at any date, Consolidated Current Assets on such date
minus Consolidated Current Liabilities on such date.

 

 

8

                    “Continuing Directors”: the directors of the Borrower on the Closing Date, after
giving effect to the Acquisition and the other transactions contemplated hereby, and each other
director, if, in each case, such other director’s nomination for election to the board of directors
of the Borrower is recommended by at least a majority of the then Continuing Directors.

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

                    “Control Investment Affiliate”: as to any Person, any other Person that (a) directly
or indirectly, is in control of, is controlled by, or is under common control with, such Person and
(b) is organized by such Person primarily for the purpose of making equity or debt investments in
one or more companies. For purposes of this definition, “control” of a Person means the power,
directly or indirectly, to direct or cause the direction of the management and policies of such
Person whether by contract or otherwise.

                    “Default”: any of the events specified in Section 9, whether or not any requirement
for the giving of notice, the lapse of time, or both, has been satisfied.

                    “Delayed-Draw Activation Notice”: a notice duly executed by a Responsible Officer
substantially in the form of Exhibit J and setting forth the amount of the requested Delayed-Draw
Term Commitment and the proposed Delayed-Draw Closing Date.

                    “Delayed-Draw Closing Date”: any date on which a Delayed-Draw Term Loan is funded.

                    “Delayed-Draw Term Commitment”: as to any Lender, the obligation of such Lender, if
any, to make a Delayed-Draw Term Loan to the Borrower hereunder in a principal amount not to exceed
the amount set forth under the heading “Delayed-Draw Term Commitment” under such Lender’s name on
such Lender’s Addendum, as such amount may be reduced pursuant to Section 4.1(b). The original
aggregate amount of the Delayed-Draw Term Commitments as of the Closing Date is $185,000,000.

                    “Delayed-Draw Term Lender”: each Lender that has a Delayed-Draw Term Commitment or
that holds a Delayed-Draw Term Loan.

                    “Delayed-Draw Term Loan”: as defined in Section 2.1.

                    “Delayed-Draw Term Percentage”: as to any Delayed-Draw Term Lender at any time, the
percentage which such Lender’s Delayed-Draw Term Commitment then constitutes of the aggregate
Delayed-Draw Term Commitments (or, at any time after the Closing Date, the percentage which the
aggregate principal amount of such Lender’s Delayed-Draw Term Loans then outstanding constitutes of
the aggregate principal amount of the Delayed-Draw Term Loans then outstanding).

                    “Deposit Account Control Agreement”: an agreement, in form and substance reasonably
satisfactory to the Administrative Agent, among the Borrower, the banking institution

 

 

9

where the
Borrower maintains its principal concentration deposit account and the Administrative Agent, with
respect to collection and control of all deposits and balances held in such account.

                    “Disposition”: with respect to any Property, any sale, lease, sale and leaseback,
assignment, conveyance, transfer or other disposition thereof. The terms “Dispose” and
“Disposed of” shall have correlative meanings.

                    “Documentation Agent”: as defined in the preamble to this Agreement.

                    “Dollars” and “$”: dollars in lawful currency of the United States.

                    “Domestic Subsidiary”: any Subsidiary of the Borrower organized under the laws of any
jurisdiction within the United States.

                    “Draw-Down Period”: the period from the Closing Date through and including the
earliest to occur of (i) the date on which the Available Delayed-Draw Commitment is zero, (ii) the
date which is 60 days after the first date on which the Available Delayed-Draw Commitment is
$35,000,000 or less or (iii) the second anniversary of the Closing Date.

                    “ECF Percentage”: 75%; provided, that, with respect to each fiscal year of
the Borrower ending on or after December 31, 2005, the ECF Percentage shall be reduced to 50% if
the Consolidated Leverage Ratio as of the last day of such fiscal year is not greater than 2.75 to
1.0, and shall be reduced to 0% if the Consolidated Leverage Ratio as of the last day of such
fiscal year is not greater than 2.00 to 1.0.

                    “Employment Agreement”: the Employment Agreement, dated as of January 31, 2002,
between the Borrower and Michael W. Patrick.

                    “Environmental Laws”: any and all foreign, Federal, state, local or municipal laws,
rules, orders, regulations, statutes, ordinances, codes, decrees, requirements of any Governmental
Authority or other Requirements of Law (including common law) regulating, relating to or imposing
liability or standards of conduct concerning protection of human health or the environment, as now
or may at any time hereafter be in effect.

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

                    “Eurocurrency Reserve Requirements”: for any day as applied to a Eurodollar Loan, the
aggregate (without duplication) of the maximum rates (expressed as a decimal fraction) of reserve
requirements in effect on such day (including basic, supplemental, marginal and emergency reserves
under any regulations of the Board or other Governmental Authority having jurisdiction with respect
thereto) dealing with reserve requirements prescribed for eurocurrency funding (currently referred
to as “Eurocurrency Liabilities” in Regulation D of the Board) maintained by a member bank of the
Federal Reserve System.

                    “Eurodollar Base Rate”: with respect to each day during each Interest Period
pertaining to a Eurodollar Loan, the rate per annum determined on the basis of the rate for
deposits in Dollars for a period equal to such Interest Period commencing on the first day of such

 

 

10

Interest Period appearing on Page 3750 of the Telerate screen as of 11:00 A.M., London time, two
Business Days prior to the beginning of such Interest Period. In the event that such rate does not
appear on Page 3750 of the Telerate screen (or otherwise on such screen), the “Eurodollar Base
Rate” shall be determined by reference to such other comparable publicly available service for
displaying eurodollar rates as may be selected by the Administrative Agent or, in the absence of
such availability, by reference to the rate at which the Administrative Agent is offered Dollar
deposits at or about 11:00 A.M., New York City time, two Business Days prior to the beginning of
such Interest Period in the interbank eurodollar market where its eurodollar and foreign currency
and exchange operations are then being conducted for delivery on the first day of such Interest
Period for the number of days comprised therein.

                    “Eurodollar Loans”: Loans the rate of interest applicable to which is based upon the
Eurodollar Rate.

                    “Eurodollar Rate”: with respect to each day during each Interest Period pertaining to
a Eurodollar Loan, a rate per annum determined for such day in accordance with the following
formula (rounded upward to the nearest 1/100th of 1%):

Eurodollar Base Rate

1.00 — Eurocurrency Reserve Requirements

                    “Eurodollar Tranche”: the collective reference to Eurodollar Loans under a particular
Facility the then current Interest Periods with respect to all of which begin on the same date and
end on the same later date (whether or not such Loans shall originally have been made on the same
day).

                    “Event of Default”: any of the events specified in Section 9, provided that
any requirement for the giving of notice, the lapse of time, or both, has been satisfied.

                    “Excess Cash Flow”: for any fiscal year of the Borrower, the excess, if any, of (a)
the sum, without duplication, of (i) Consolidated Net Income for such fiscal year, (ii) the amount
of all non-cash charges (including depreciation and amortization) deducted in arriving at such
Consolidated Net Income, (iii) decreases in Consolidated Working Capital for such fiscal year, and
(iv) the aggregate net amount of non-cash loss on the Disposition of Property by the Borrower and
its Subsidiaries during such fiscal year (other than sales of inventory in the ordinary course of
business), to the extent deducted in arriving at such Consolidated Net Income over (b) the
sum, without duplication, of (i) the amount of all non-cash income included in arriving at such
Consolidated Net Income, (ii) the aggregate amount actually paid by the Borrower and its
Subsidiaries in cash during such fiscal year on account of Capital Expenditures (excluding the
principal amount of Indebtedness incurred to finance such expenditures (but including repayments
of any such Indebtedness incurred during such period or any prior period) and any such expenditures
financed with the proceeds of any Reinvestment Deferred Amount), (iii) the aggregate amount
actually paid by the Borrower and its Subsidiaries in cash during such fiscal year on account of
Permitted Acquisitions (including, for the purpose of this definition
only, the Acquisition, but excluding the principal amount of Indebtedness incurred to finance
such Permitted Acquisitions (but including repayments of any such Indebtedness incurred during such
period or any prior period)), (iv) the aggregate amount of all prepayments of Revolving

 

 

11

Loans and
Swingline Loans during such fiscal year to the extent accompanying permanent optional reductions of
the Revolving Commitments and all optional prepayments of the Term Loans during such fiscal year,
(v) the aggregate amount of all regularly scheduled principal payments of Funded Debt (including
the Term Loans) of the Borrower and its Subsidiaries made during such fiscal year (other than in
respect of any revolving credit facility to the extent there is not an equivalent permanent
reduction in commitments thereunder), (vi) increases in Consolidated Working Capital for such
fiscal year, (vii) the aggregate net amount of non-cash gain on the Disposition of Property by the
Borrower and its Subsidiaries during such fiscal year (other than sales of inventory in the
ordinary course of business), to the extent included in arriving at such Consolidated Net Income,
(viii) the aggregate amount of mandatory prepayments made in respect of Indebtedness during such
period as a result of Asset Sales and Recovery Events, and the aggregate amount of proceeds
included in any Reinvestment Deferred Amounts realized during such period, to the extent such
amounts were included in arriving at Consolidated Net Income, and (ix) the aggregate amount of
Restricted Payments made in accordance with Section 8.6(b) (excluding amounts paid in reliance on
the proviso to such Section).

                    “Excess Cash Flow Application Date”: as defined in Section 4.2.

                    “Excluded Foreign Subsidiary”: any Foreign Subsidiary in respect of which either (a)
the pledge of all of the Capital Stock of such Subsidiary as Collateral or (b) the guaranteeing by
such Subsidiary of the Obligations, would, in the good faith judgment of the Borrower, result in
adverse tax consequences to the Borrower.

                    “Excluded Indebtedness”: all Indebtedness permitted by clauses (a), (b), (c), (d),
(e), (f), (g), (h), (i), (j), (k), (l), (m), (n) and (p) of Section 8.2.

                    “Facility”: each of (a) the Initial Term Commitments and the Initial Term Loans made
thereunder and any Incremental Term Loan made on the same terms as the Initial Term Loans (the
“Initial Term Facility”), (b) the Delayed-Draw Term Commitments and the Delayed-Draw Term
Loans made thereunder (the “Delayed-Draw Term Facility”); (c) the Revolving Commitments and
the extensions of credit made thereunder (the “Revolving Facility”) and (d) the Other Term
Loans (the “Other Term Facility”).

                    “Federal Funds Effective Rate”: for any day, the weighted average of the rates on
overnight federal funds transactions with members of the Federal Reserve System arranged by federal
funds brokers, as published 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 of the
quotations for the day of such transactions received by the Reference Lender from three federal
funds brokers of recognized standing selected by it.

                    “Foreign Subsidiary”: any Subsidiary of the Borrower that is not a Domestic
Subsidiary.

                    “Funded Debt”: as to any Person, all Indebtedness of such Person that matures more
than one year from the date of its creation or matures within one year from such date but is
renewable or extendible, at the option of such Person, to a date more than one year from such

 

 

12

date
or arises under a revolving credit or similar agreement that obligates the lender or lenders to
extend credit during a period of more than one year from such date, 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 Borrower,
Indebtedness in respect of the Loans.

                    “Funding Office”: the office of the Administrative Agent specified in Section 11.2 or
such other office as may be specified from time to time by the Administrative Agent as its funding
office by written notice to the Borrower and the Lenders.

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

                    “Governmental Authority”: any nation or government, any state or other political
subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank
or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative
functions of or pertaining to government, any securities exchange and any self-regulatory
organization (including the National Association of Insurance Commissioners).

                    “Group Members”: the collective reference to the Borrower and its Subsidiaries.

                    “Guarantee and Collateral Agreement”: the Guarantee and Collateral Agreement to be
executed and delivered by the Borrower and each Subsidiary Guarantor, substantially in the form of
Exhibit C.

                    “Guarantee Obligation”: as to any Person (the “guaranteeing person”), any
obligation of (a) the guaranteeing person or (b) another Person (including any bank under any
letter of credit) to induce the creation of which the guaranteeing person has issued a
reimbursement, counterindemnity or similar obligation, in either case guaranteeing or in effect
guaranteeing any Indebtedness, leases, dividends or other obligations (the “primary
obligations”) of any other third Person (the “primary obligor”) in any manner, whether
directly or indirectly, including any obligation of the guaranteeing person, whether or not
contingent, (i) to purchase any such primary obligation or any property constituting direct or
indirect security therefor, (ii) to advance or supply funds (1) for the purchase or payment of any
such primary obligation or (2) to maintain working capital or equity capital of the primary obligor
or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase
property, securities or services primarily for the purpose of assuring the owner of any such
primary obligation of the ability of the primary obligor to make payment of such primary obligation
or (iv) otherwise to assure or hold harmless the owner of any such primary obligation against loss
in respect thereof; provided, however, that the term Guarantee Obligation shall not
include endorsements of instruments for deposit or collection in the ordinary course of business.
The amount of any Guarantee Obligation of any guaranteeing person shall be deemed to be the lower
of (a) an amount equal to the stated or determinable amount of the primary obligation in respect of
which such Guarantee Obligation is made and (b) the maximum amount for which such guaranteeing
person may be
liable pursuant to the terms of the instrument embodying such Guarantee Obligation, unless
such primary obligation and the maximum amount for which such guaranteeing person may be liable are
not stated or determinable, in which case the amount of such Guarantee Obligation shall be

 

 

13

such
guaranteeing person’s maximum reasonably anticipated liability in respect thereof as determined by
the Borrower in good faith.

                    “Hedge Agreements”: 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 the Borrower or the Subsidiaries shall be a
Hedge Agreement.

                    “Increased Amount Date”: as defined in Section 4.16(a).

                    “Incremental Amount” shall mean, at any time, the excess, if any, of (a) $125,000,000
over (b) the aggregate amount of all Incremental Term Loans made plus all Incremental Revolving
Commitments established prior to such time pursuant to Section 4.16.

                    “Incremental Assumption Agreement”: an Incremental Assumption Agreement in form and
substance reasonably satisfactory to the Administrative Agent, among the Borrower, the
Administrative Agent and one or more Incremental Term Lenders and/or Incremental Revolving Lenders.

                    “Incremental Revolving Commitment”: the commitment of any Lender, established
pursuant to Section 4.16, to make Incremental Revolving Loans to the Borrower.

                    “Incremental Revolving Lender”: a Lender with an Incremental Revolving Commitment or
an outstanding Incremental Revolving Loan.

                    “Incremental Revolving Loans”: the Revolving Loans made by one or more Lenders to the
Borrower pursuant to Section 4.16.

                    “Incremental Term Lender”: each Lender which holds an Incremental Term Loan.

                    “Incremental Term Loans”: the Term Loans made by one or more Lenders to the Borrower
pursuant to Section 4.16.

                    “Indebtedness”: of any Person at any date, without duplication, (a) all indebtedness
of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase
price of property or services (other than trade payables incurred in the ordinary course of such
Person’s business which are current or are no more than 30 days delinquent), (c) all obligations of
such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all
indebtedness created or arising under any conditional sale or other title retention agreement with
respect to property acquired by such Person (even though the rights and
remedies of the seller or lender under such agreement in the event of default are limited to
repossession or sale of such property), (e) all Capital Lease Obligations of such Person, (f) all
obligations of such Person, contingent or otherwise, as an account party or applicant under or in

 

 

14

respect of acceptances, letters of credit, surety bonds or similar arrangements, (g) the
liquidation value of all preferred Capital Stock of such Person redeemable by its terms or at the
option of the holder prior to the Term Loan Maturity Date, (h) all Guarantee Obligations of such
Person in respect of obligations of the kind referred to in clauses (a) through (g) above, (i) all
obligations of the kind referred to in clauses (a) through (h) above secured by (or for which the
holder of such obligation has an existing right, contingent or otherwise, to be secured by) any
Lien on property (including accounts and contract rights) owned by such Person, whether or not such
Person has assumed or become liable for the payment of such obligation, and (j) for the purposes of
Sections 8.2 and 9(e) only, all obligations of such Person in respect of Hedge Agreements. 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 expressly provide that such Person is not liable
therefor.

                    “Initial Term Commitment”: as to any Lender, the obligation of such Lender, if any,
to make an Initial Term Loan to the Borrower hereunder in a principal amount not to exceed the
amount set forth under the heading “Initial Term Commitment” under such Lender’s name on such
Lender’s Addendum, as such amount may be increased pursuant to Section 4.16(a). The original
aggregate amount of the Initial Term Commitments is $170,000,000.

                    “Initial Term Lender”: each Lender that has an Initial Term Commitment or that holds
an Initial Term Loan.

                    “Initial Term Loan”: as defined in Section 2.1.

                    “Initial Term Percentage”: as to any Initial Term Lender at any time, the percentage
which such Lender’s Initial Term Commitment then constitutes of the aggregate Initial Term
Commitments (or, at any time after the Closing Date, the percentage which the aggregate principal
amount of such Lender’s Initial Term Loans then outstanding constitutes of the aggregate principal
amount of the Initial Term Loans then outstanding).

                    “Insolvency”: with respect to any Multiemployer Plan, the condition that such Plan is
insolvent within the meaning of Section 4245 of ERISA.

                    “Insolvent”: pertaining to a condition of Insolvency.

                    “Intellectual Property”: the collective reference to all rights, priorities and
privileges relating to intellectual property, whether arising under United States, multinational or
foreign laws or otherwise, including copyrights, copyright licenses, patents, patent licenses,
trademarks, trademark licenses, technology, know-how and processes, and all rights to sue at law or
in equity for any infringement or other impairment thereof, including the right to receive all
proceeds and damages therefrom.

                    “Interest Payment Date”: (a) as to any Base Rate Loan (other than any Swingline
Loan), the last day of each March, June, September and December to occur while such Loan is
outstanding and the final maturity date of such Loan, (b) as to any Eurodollar Loan having an
Interest Period of three months or less, the last day of such Interest Period, (c) as to any

 

 

15

Eurodollar Loan having an Interest Period longer than three months, each day that is three months,
or a whole multiple thereof, after the first day of such Interest Period and the last day of such
Interest Period, (d) as to any Loan (other than any Revolving Loan that is a Base Rate Loan and any
Swingline Loan), the date of any repayment or prepayment made in respect thereof and (e) as to any
Swingline Loan, the day that such Loan is required to be paid.

                    “Interest Period”: as to any Eurodollar Loan, (a) initially, the period commencing on
the borrowing or conversion date, as the case may be, with respect to such Eurodollar Loan and
ending one, two, three or six months thereafter, as selected by the Borrower in its notice of
borrowing or notice of conversion, as the case may be, given with respect thereto; and (b)
thereafter, each period commencing on the last day of the next preceding Interest Period applicable
to such Eurodollar Loan and ending one, two, three or six months thereafter, as selected by the
Borrower by irrevocable notice to the Administrative Agent no later than 11:00 A.M., New York City
time, on the date that is three Business Days prior to the last day of the then current Interest
Period with respect thereto; provided that, all of the foregoing provisions relating to
Interest Periods are subject to the following:

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

          (ii) the Borrower may not select an Interest Period under a particular Facility that
would extend beyond the Revolving Termination Date or beyond the Term Loan Maturity
Date, as the case may be;

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

          (iv) the Borrower shall select Interest Periods so as not to require a payment or
prepayment of any Eurodollar Loan during an Interest Period for such Loan.

                    “Investments”: as defined in Section 8.8.

                    “Issuing Lender”: Wells Fargo Foothill, Inc., or its Affiliate that is a commercial
bank in its capacity as issuer of any Letter of Credit.

                    “L/C Commitment”: $10,000,000.

                    “L/C Fee Payment Date”: the last day of each March, June, September and December and
the last day of the Revolving Commitment Period.

                    “L/C Issuance Side Letter”: the side letter dated as of even date with this
Agreement, by and between the Issuing Lender and the Administrative Agent and acknowledged by the
Borrower.

 

 

16

                    “L/C Obligations”: at any time, an amount equal to the sum of (a) the aggregate then
undrawn and unexpired amount of the then outstanding Letters of Credit, (b) the face amount of any
Letter of Credit for which an Application has been submitted and is pending but that has not yet
been issued, and (c) the aggregate amount of drawings under Letters of Credit that have not then
been reimbursed pursuant to Section 3.11.

                    “L/C Participants”: the collective reference to all the Revolving Lenders other than
the Issuing Lender.

                    “Lead Arranger”: as defined in the recitals to this Agreement.

                    “Lenders”: as defined in the preamble hereto; provided, that unless the
context otherwise requires, each reference herein to the Lenders shall be deemed to include any
Conduit Lender.

                    “Letters of Credit”: as defined in Section 3.7(a).

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

                    “Liquidity”: the sum of (a) cash and cash equivalents held by the Borrower and its
Subsidiaries, plus (b) so long as the Borrower is able to satisfy the conditions to
borrowing set forth in clauses (a) and (c) of Section 6.2 (including, but not limited to, pro forma
compliance with the financial covenants pursuant to Section 7.1), the Available Revolving
Commitment.

                    “Loan”: any loan made by any Lender pursuant to this Agreement.

                    “Loan Documents”: this Agreement, all Letters of Credit and Applications therefor,
the Security Documents, each Delayed-Draw Activation Notice, each Incremental Assumption Agreement
and the Notes.

                    “Loan Parties”: each Group Member that is a party to a Loan Document.

                    “Majority Facility Lenders”: with respect to any Facility, the holders of more than
50% of the aggregate unpaid principal amount of the Term Loans or the Total Revolving Extensions of
Credit, as the case may be, outstanding under such Facility (or, in the case of the Revolving
Facility, prior to any termination of the Revolving Commitments, the holders of more than 50% of
the Total Revolving Commitments).

                    “Material Adverse Effect”: a material adverse effect on (a) the Acquisition, (b) the
business, assets, property, financial condition, results of operations or prospects of the
Borrower and its Subsidiaries taken as a whole or (c) the validity or enforceability of this
Agreement or any of the other Loan Documents or the rights or remedies of the Agents or the Lenders
hereunder or thereunder; provided, that, for the purposes of any use of this term
subsequent to the Closing Date, clause (a) above shall be deemed not to be in effect.

 

 

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                    “Material Group Member”: the Borrower and each Subsidiary that, during the period of
the most recent four full fiscal quarters of the Borrower for which financial statements are
available, had gross revenues representing more than one percent (1%) of the total consolidated
gross revenues of the Borrower for such period.

                    “Materials of Environmental Concern”: any gasoline or petroleum (including crude oil
or any fraction thereof) or petroleum products or any hazardous or toxic substances, materials or
wastes, defined or regulated as such in or under any Environmental Law, including asbestos,
polychlorinated biphenyls and urea-formaldehyde insulation.

                    “Mortgaged Properties”: the real properties listed on Schedule 1.1, and any property
which becomes subject to a Mortgage in accordance with Section 7.11(b), as to which the
Administrative Agent for the benefit of the Lenders shall be granted a Lien pursuant to the
Mortgages.

                    “Mortgages”: each of the mortgages, deeds of trust and deeds to secure debt made by
any Loan Party in favor of, or for the benefit of, the Administrative Agent for the benefit of the
Lenders, substantially in the form of Exhibit E (with such changes thereto as shall be advisable
under the law of the jurisdiction in which such mortgage or deed of trust is to be recorded).

                    “Multiemployer Plan”: a Plan that is a multiemployer plan as defined in Section
4001(a)(3) of ERISA.

                    “Net Cash Proceeds”: (a) in connection with any Asset Sale or any Recovery Event,
the proceeds thereof in the form of cash and Cash Equivalents (including any such proceeds received
by way of deferred payment of principal pursuant to a note or installment receivable or purchase
price adjustment receivable or by the Disposition of any non-cash consideration received in
connection therewith or otherwise, but only as and when received) of such Asset Sale or Recovery
Event, net of attorneys’ fees, accountants’ fees, investment banking fees, amounts required to be
applied to the repayment of Indebtedness secured by a Lien, or otherwise required by the terms
governing such Indebtedness, expressly permitted hereunder on any asset that is the subject of such
Asset Sale or Recovery Event (other than any Lien pursuant to a Security Document) and other
customary fees and expenses actually incurred in connection therewith (including, in the case of
Recovery Events, costs and expenses incurred in respect of legal proceedings, arbitration,
mediation and similar proceedings) and net of (x) taxes paid or reasonably estimated to be payable
as a result thereof (after taking into account any available tax credits or deductions and any tax
sharing arrangements) and (y) any reserves for liabilities (fixed or contingent) for
indemnification or purchase price adjustments in connection with any such transaction until such
reserves cease to be reflected in the relevant financial statement (to the extent not as a result
of disbursement) and (b) in connection with any issuance or sale of Capital Stock, any capital
contribution or any incurrence of Indebtedness, the cash proceeds received
from such issuance, contribution or incurrence, net of attorneys’ fees, investment banking
fees, accountants’ fees, underwriting discounts and commissions and other customary fees and
expenses actually incurred in connection therewith.

                    “Non-Excluded Taxes”: as defined in Section 4.10(a).

 

 

18

                    “Non-Guarantor Subsidiary”: any Subsidiary of the Borrower that is not a Subsidiary
Guarantor.

                    “Non-U.S. Lender”: as defined in Section 4.10(d).

                    “Notes”: the collective reference to any promissory note evidencing Loans.

                    “Obligations”: the unpaid principal of and interest on (including interest accruing
after the maturity of the Loans and Reimbursement Obligations and interest accruing after the
filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding, relating to the Borrower, whether or not a claim for post-filing or post-petition
interest is allowed in such proceeding) the Loans and all other obligations and liabilities of the
Borrower to any Agent or to any Lender (or, in the case of Specified Hedge Agreements, any
affiliate of any Lender), whether direct or indirect, absolute or contingent, due or to become due,
or now existing or hereafter incurred, which may arise under, out of, or in connection with, this
Agreement, any other Loan Document, the Letters of Credit, any Specified Hedge Agreement or any
other document made, delivered or given in connection herewith or therewith, whether on account of
principal, interest, reimbursement obligations, fees, indemnities, costs, expenses (including all
fees, charges and disbursements of counsel to any Agent or to any Lender that are required to be
paid by the Borrower pursuant hereto) or otherwise; provided, that (i) obligations of the
Borrower or any Subsidiary under any Specified Hedge Agreement shall be secured and guaranteed
pursuant to the Security Documents only to the extent that, and for so long as, the other
Obligations are so secured and guaranteed and (ii) any release of Collateral or Guarantors effected
in the manner permitted by this Agreement shall not require the consent of holders of obligations
under Specified Hedge Agreements.

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

                    “Other Term Loans”: as defined in Section 4.16.

                    “Participant”: as defined in Section 11.6(b).

                    “PBGC”: the Pension Benefit Guaranty Corporation established pursuant to Subtitle A
of Title IV of ERISA (or any successor).

                    “Permitted Acquisition”: any acquisition, whether by purchase, merger or otherwise,
of all or substantially all of the assets of, all of the Capital Stock of, or a business line or
unit or a division of, any Person; provided, (i) immediately prior to, and after giving effect
thereto, no Default or Event of Default shall have occurred and be continuing or would result
therefrom; (ii) all transactions in connection therewith shall be consummated, in all material
respects, in accordance with all applicable laws and in conformity with all applicable governmental
authorizations; (iii) in the case of the acquisition of Capital Stock, all of the Capital Stock
(except for any such Securities in the nature of directors’ qualifying shares required pursuant to
applicable law) acquired or otherwise issued by such Person or any newly formed Subsidiary of the
Borrower in connection with such acquisition shall be owned 100% by the

 

 

19

Borrower or a Subsidiary
Guarantor thereof, and the Borrower shall have taken, or caused to be taken, as of the date such
Person becomes a Subsidiary of the Borrower, each of the actions set forth in Sections 7.10 and
7.11, as applicable; (iv) the Borrower and its Subsidiaries shall be in compliance with the
financial covenants set forth in Section 8.1 on a pro forma basis after giving effect to such
acquisition as if such acquisition had occurred on the first day of the most recent period of four
consecutive fiscal quarters in respect of which the Consolidated Leverage Ratio has been tested in
accordance with Section 8.1(a) but utilizing the financial covenant levels set forth in Section 8.1
(including any adjustment thereto pursuant to the proviso to Section 8.1(a)) corresponding to the
period of four consecutive fiscal quarters ending at the conclusion of the fiscal quarter in which
such acquisition occurs, (v) immediately prior to, and after giving effect thereto, the Borrower
and its Subsidiaries shall have minimum Liquidity of $15,000,000, (vi) the Borrower shall have
delivered to the Administrative Agent at least ten (10) Business Days prior to such proposed
acquisition, a Compliance Certificate evidencing compliance with Section 8.1 as required under
clause (iv) above, together with all relevant financial information with respect to such acquired
assets, including, without limitation, the aggregate consideration for such acquisition, any other
information reasonably required to demonstrate compliance with Section 8.1 and, in the case of any
acquisition with aggregate consideration in excess of $50,000,000, appropriate revisions to the
projections included in the Confidential Information Memorandum, or, if Projections have been
provided pursuant to Section 7.2(c), appropriate revisions to such Projections, in each case after
giving effect to such acquisition (such revised projections or Projections to be accompanied by a
certificate of a Responsible Officer stating that such revised projections or Projections are based
on estimates, information and assumptions set forth therein and otherwise believed by such
Responsible Officer to be reasonable at such time (it being recognized that such revised
projections or Projections relate to future events and are not to be viewed as fact and that actual
results during the period covered thereby may differ from such revised projections or Projections
by a material amount)); and (vii) any Person or assets or division as acquired in accordance
herewith shall be in substantially the same business or lines of business in which the Borrower
and/or its Subsidiaries are engaged, or are permitted to be engaged as provided herein, as of the
time of such acquisition. Prior to the expiration of the Draw-Down Period, all Permitted
Acquisitions must be financed with borrowings under the Draw-Down Facility and may not be financed
with cash on hand.

                    “Person”: an individual, partnership, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint venture, Governmental
Authority or other entity of whatever nature.

                    “Plan”: at a particular time, any employee benefit plan that is covered by ERISA and
in respect of which the Borrower or a Commonly Controlled Entity is (or, if such plan were
terminated at such time, would under Section 4069 of ERISA be deemed to be) an “employer” as
defined in Section 3(5) of ERISA.

                    “Pricing Grid”: the pricing grid attached hereto as Annex A.

                    “Pro Forma Balance Sheet”: as defined in Section 5.1(a).

                    “Projections”: as defined in Section 7.2(c).

 

 

20

                    “Properties”: as defined in Section 5.17(a).

                    “Property”: any right or interest in or to property of any kind whatsoever, whether
real, personal or mixed and whether tangible or intangible, including, without limitation, Capital
Stock.

                    “Recovery Event”: any settlement of or payment in respect of any property, casualty
or title insurance claim or any condemnation proceeding relating to any asset of any Group Member.

                    “Reference Lender”: The Bank of New York.

                    “Refunded Swingline Loans”: as defined in Section 3.4.

                    “Refunding Date”: as defined in Section 3.4.

                    “Register”: as defined in Section 11.6(d).

                    “Regulation U”: Regulation U of the Board as in effect from time to time.

                    “Reimbursement Obligation”: the obligation of the Borrower to reimburse the Issuing
Lender pursuant to Section 3.11 for amounts drawn under Letters of Credit.

                    “Reinvestment Deferred Amount”: with respect to any Reinvestment Event, the aggregate
Net Cash Proceeds received by any Group Member in connection therewith that are not applied to
prepay the Term Loans or reduce the Revolving Commitments pursuant to Section 4.2(b) as a result of
the delivery of a Reinvestment Notice.

                    “Reinvestment Event”: any Asset Sale or Recovery Event in respect of which the
Borrower has delivered a Reinvestment Notice.

                    “Reinvestment Notice”: a written notice executed by a Responsible Officer stating
that no Event of Default has occurred and is continuing and that the Borrower (directly or
indirectly through a Subsidiary) intends and expects to use all or a specified portion of the Net
Cash Proceeds of an Asset Sale or Recovery Event to acquire, construct or repair fixed or capital
assets useful in its business.

                    “Reinvestment Prepayment Amount”: with respect to any Reinvestment Event, the
Reinvestment Deferred Amount relating thereto less any amount expended prior to the relevant
Reinvestment Prepayment Date to acquire, construct or repair fixed or capital assets useful in the
Borrower’s business.

                    “Reinvestment Prepayment Date”: with respect to any Reinvestment Event, the earlier
of (a) the date occurring twelve months after such Reinvestment Event and (b) the date on which the
Borrower shall have determined not to, or shall have otherwise ceased to, acquire, construct or
repair fixed or capital assets useful in the Borrower’s business with all or any portion of the
relevant Reinvestment Deferred Amount.

 

 

21

                    “Reorganization”: with respect to any Multiemployer Plan, the condition that such
plan is in reorganization within the meaning of Section 4241 of ERISA.

                    “Reportable Event”: any of the events set forth in Section 4043(b) of ERISA, other
than those events as to which the thirty day notice period is waived under subsections .27, .28,
..29, .30, .31, .32, .34 or .35 of PBGC Reg. § 4043.

                    “Required Lenders”: at any time, the holders of more than 50% of (a) until the
Closing Date, the Commitments then in effect and (b) thereafter, the sum of (i) the aggregate
unpaid principal amount of the Term Loans then outstanding, (ii) the Total Revolving Commitments
then in effect or, if the Revolving Commitments have been terminated, the Total Revolving
Extensions of Credit then outstanding, and (iii) the Total Delayed-Draw Term Commitments then in
effect.

                    “Requirement of Law”: as to any Person, the Certificate of Incorporation and By-Laws
or other organizational or governing documents of such Person, and any law, treaty, rule or
regulation or determination of an arbitrator or a 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.

                    “Responsible Officer”: the chief executive officer, president, chief financial
officer or controller of the Borrower, but in any event, with respect to financial matters, the
chief financial officer or controller of the Borrower.

                    “Restricted Payments”: as defined in Section 8.6.

                    “Revolving Commitment”: as to any Lender, the obligation of such Lender, if any, to
make Revolving Loans (including, if applicable, Incremental Revolving Loans) and participate in
Swingline Loans and Letters of Credit in an aggregate principal and/or face amount not to exceed
the amount set forth under the heading “Revolving Commitment” under such Lender’s name on such
Lender’s Addendum or in the Assignment and Assumption pursuant to which such Lender became a party
hereto, as the same may be increased pursuant to Section 4.16 or otherwise changed from time to
time pursuant to the terms hereof. The original amount of the Total Revolving Commitments is
$50,000,000.

                    “Revolving Commitment Period”: the period from and including the Closing Date to the
Revolving Termination Date.

                    “Revolving Extensions of Credit”: as to any Revolving Lender at any time, an amount
equal to the sum of (a) the aggregate principal amount of all Revolving Loans held by such Lender
then outstanding, (b) such Lender’s Revolving Percentage of the L/C Obligations at
such time and (c) such Lender’s Revolving Percentage of the aggregate principal amount of
Swingline Loans then outstanding.

                    “Revolving Lender”: each Lender that has a Revolving Commitment or that holds
Revolving Loans (including Incremental Revolving Commitments and Incremental Revolving Loans).

 

 

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                    “Revolving Loans”: as defined in Section 3.1(a).

                    “Revolving Percentage”: as to any Revolving Lender at any time, the percentage which
such Lender’s Revolving Commitment then constitutes of the Total Revolving Commitments (or, at any
time after the Revolving Commitments shall have expired or terminated, the percentage which the
aggregate principal amount of such Lender’s Revolving Loans then outstanding constitutes of the
aggregate principal amount of the Revolving Loans then outstanding).

                    “Revolving Termination Date”: May 19, 2010.

                    “SEC”: the Securities and Exchange Commission, any successor thereto and any
analogous Governmental Authority.

                    “Security Documents”: the collective reference to the Guarantee and Collateral
Agreement, the Mortgages and all other security documents hereafter delivered to the Administrative
Agent granting a Lien on any property of any Person to secure the obligations and liabilities of
any Loan Party under any Loan Document.

                    “Senior Subordinated Note Indenture”: the Indenture, dated as of February 4, 2004,
among the Borrower, certain of its Subsidiaries and Wells Fargo Bank Minnesota, National
Association, as Trustee, in connection with the issuance of the Senior Subordinated Notes, together
with all instruments and other agreements entered into by the Borrower or such Subsidiaries in
connection therewith.

                    “Senior Subordinated Notes”: the $150,000,000 aggregate principal amount 7.50% senior
subordinated notes of the Borrower issued on February 4, 2004, and due February 15, 2014, pursuant
to the Senior Subordinated Note Indenture.

                    “Showtime Agreement”: Agreement between the Borrower and Showtime Concession Supply
Co., effective November 1, 2003.

                    “Single Employer Plan”: any Plan that is covered by Title IV of ERISA, but that is
not a Multiemployer Plan.

                    “Solvent”: when used with respect to any Person, means that, as of any date of
determination, (a) the amount of the “present fair saleable value” of the assets of such Person
will, as of such date, exceed the amount of all “liabilities of such Person, contingent or
otherwise”, as of such date, as such quoted terms are determined in accordance with applicable
federal and state laws governing determinations of the insolvency of debtors, (b) the present fair
saleable value of the assets of such Person will, as of such date, be greater than the amount that
will be required to pay the liability of such Person on its debts as such debts become
absolute and matured, (c) such Person will not have, as of such date, an unreasonably small amount
of capital with which to conduct its business, and (d) such Person will be able to pay its debts as
they mature. For purposes of this definition, (i) “debt” means liability on a “claim”, (ii)
“claim” means any (x) right to payment, whether or not such a right is reduced to judgment,
liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal,
equitable, secured or unsecured or (y) right to an equitable remedy for breach of performance if
such

 

 

23

breach gives rise to a right to payment, whether or not such right to an equitable remedy is

reduced to judgment, fixed, contingent, matured or unmatured, disputed, undisputed, secured or
unsecured and (iii) “assets” shall include, in the case of any Group Member, all rights and claims
for contribution, subrogation and indemnification against any other Group Member.

                    “Specified Change of Control”: a “Change of Control” (or any other defined term
having a similar purpose) as defined in the Senior Subordinated Note Indenture.

                    “Specified Hedge Agreement”: any Hedge Agreement (a) entered into by (i) the Borrower
or any of its Subsidiaries and (ii) any Agent or Lender or any affiliate thereof, as counterparty
and (b) that has been designated by such Agent or Lender, as the case may be, and the Borrower, by
notice to the Administrative Agent, as a Specified Hedge Agreement. The designation of any Hedge
Agreement as a Specified Hedge Agreement shall not create in favor of the Agent, Lender or
affiliate thereof that is a party thereto any rights in connection with the management or release
of any Collateral or of the obligations of any Guarantor under the Guarantee and Collateral
Agreement.

                    “Subsidiary”: as to any Person, a corporation, partnership, limited liability company
or other entity of which shares of stock or other ownership interests having ordinary voting power
(other than stock or such other ownership interests having such power only by reason of the
happening of a contingency) to elect a majority of the board of directors or other managers of such
corporation, partnership or other entity are at the time owned, or the management of which is
otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such
Person. Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this
Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.

                    “Subsidiary Guarantor”: each Subsidiary of the Borrower other than (i) any Excluded
Foreign Subsidiary, (ii) any Subsidiary that is not a Material Group Member that the Borrower
elects to have excluded from being a Subsidiary Guarantor or (iii) any non-Wholly Owned Subsidiary
that is prohibited from becoming a Subsidiary Guarantor by the terms of any Requirement of Law
(including any duties owed thereunder) binding on or applicable to such non-Wholly Owned Subsidiary
or the holders of its Capital Stock.

                    “Swingline Commitment”: the obligation of the Swingline Lender to make Swingline
Loans pursuant to Section 3.3 in an aggregate principal amount at any one time outstanding not to
exceed $10,000,000.

                    “Swingline Lender”: Bear Stearns Corporate Lending Inc., or any other Lender
designated by the Borrower and approved by the Administrative Agent (such consent not to be
unreasonably withheld), in its capacity as the lender of Swingline Loans.

                    “Swingline Loans”: as defined in Section 3.3.

                    “Swingline Participation Amount”: as defined in Section 3.4.

 

 

24

                    “Syndication Date”: the date on which the Lead Arranger declares the syndication of
the Facilities to be complete (such period not to exceed 60 days after the Closing Date) and the
entities selected in such syndication process become parties to this Agreement.

                    “Target”: George G. Kerasotes Corporation.

                    “Term Lenders”: the collective reference to the Initial Term Lenders, the
Delayed-Draw Term Lenders and the Incremental Term Lenders.

                    “Term Loan Maturity Date”: May 19, 2012.

                    “Term Loans”: the collective reference to the Initial Term Loans, the Delayed-Draw
Term Loans and the Incremental Term Loans.

                    “Total Delayed-Draw Term Commitments”: at any time, the aggregate amount of the
Delayed-Draw Term Commitments then in effect.

                    “Total Revolving Commitments”: at any time, the aggregate amount of the Revolving
Commitments then in effect.

                    “Total Revolving Extensions of Credit”: at any time, the aggregate amount of the
Revolving Extensions of Credit of the Revolving Lenders outstanding at such time.

                    “Transferee”: any Assignee or Participant.

                    “Type”: as to any Loan, its nature as a Base Rate Loan or a Eurodollar Loan.

                    “United States”: the United States of America.

                    “Wholly Owned Subsidiary”: as to any Person, any other Person all of the Capital
Stock of which (other than directors’ qualifying shares required by law) is owned by such Person
directly and/or through other Wholly Owned Subsidiaries.

                    “Wholly Owned Subsidiary Guarantor”: any Subsidiary Guarantor that is a Wholly Owned
Subsidiary of the Borrower.

                    1.2. Other Definitional Provisions. (a) Unless otherwise specified therein, all
terms defined in this Agreement shall have the defined meanings when used in the other Loan
Documents or any certificate or other document made or delivered pursuant hereto or thereto.

          (b) As used herein and in the other Loan Documents, and any certificate or other document
made or delivered pursuant hereto or thereto, (i) accounting terms relating to any Group Member
not defined in Section 1.1 and accounting terms partly defined in Section 1.1, to the extent
not defined, shall have the respective meanings given to them under GAAP, (ii) the words
“include”, “includes” and “including” shall be deemed to be followed by the phrase “without
limitation”, (iii) the word “incur” shall be construed to mean incur, create, issue, assume,
become liable in respect of or suffer to exist (and the words “incurred” and “incurrence” shall
have correlative meanings), (iv) the words “asset” and “property”

 

 

25

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, Capital Stock, securities, revenues, accounts, leasehold interests
and contract rights, and (v) references to agreements or other Contractual Obligations shall,
unless otherwise specified, be deemed to refer to such agreements or Contractual Obligations as
amended, supplemented, restated or otherwise modified from time to time (subject to any
applicable restrictions hereunder) and (vi) references to the “Borrower and its Subsidiaries”
shall be deemed to include the Target and its Subsidiaries.

          (c) The words “hereof”, “herein” and “hereunder” and words of similar import when used in
this Agreement shall refer to this Agreement as a whole and not to any particular provision of
this Agreement, and Section, Schedule and Exhibit references are to this Agreement unless
otherwise specified.

          (d) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

          (e) Except as otherwise expressly provided herein, all terms of an accounting or financial
nature shall be construed in accordance with GAAP; provided that, if either the
Borrower notifies the Administrative Agent that such Borrower requests an amendment to any
provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP
or in the application thereof on the operation of such provision (or if the Administrative
Agent notifies the Borrowers that the Required Lenders request an amendment to any provision
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.

SECTION 2. AMOUNT AND TERMS OF TERM COMMITMENTS

                    2.1. Term Commitments. Subject to the terms and conditions hereof, (a) each Initial
Term Lender severally agrees to make a term loan (an “Initial Term Loan”) to the Borrower
on the Closing Date in an amount equal to the Initial Term Commitment of such Lender and (b) each
Delayed-Draw Term Lender severally agrees to make one or more term loans (each, a “Delayed-Draw
Term Loan”) to the Borrower from time to time during the Draw-Down Period in an aggregate
amount for all such term loans not to exceed the amount of the Delayed-Draw Term
Commitment of such Lender. The Term Loans may from time to time be Eurodollar Loans or Base
Rate Loans, as determined by the Borrower and notified to the Administrative Agent in accordance
with Sections 2.2 and 4.3.

                    2.2. Procedure for Term Loan Borrowing. (a) The Borrower shall give the
Administrative Agent irrevocable notice (which notice must be received by the Administrative Agent
prior to 10:00 A.M., New York City time, one Business Day prior to the anticipated Closing Date)
requesting that the Initial Term Lenders make the Initial Term Loans on the Closing Date and
specifying the amount to be borrowed. The Initial Term Loans made on the Closing Date shall
initially be Base Rate Loans and, unless otherwise agreed by the

 

 

26

Administrative Agent in its sole
discretion, no Initial Term Loan may be converted into or continued as a Eurodollar Loan having an
Interest Period in excess of one month prior to the Syndication Date. Upon receipt of such notice
the Administrative Agent shall promptly notify each Initial Term Lender thereof. Not later than
12:00 Noon, New York City time, on the Closing Date each Initial Term Lender shall make available
to the Administrative Agent at the Funding Office an amount in immediately available funds equal to
the Initial Term Loan to be made by such Lender. The Administrative Agent shall promptly make
available to the Borrower on the Closing Date, by wire transfer of immediately available funds to a
bank account designated in writing by the Borrower, the aggregate of the amounts made available to
the Administrative Agent by the Initial Term Lenders in immediately available funds.

          (b) The Borrower may request from time to time during the Draw-Down Period that the
Delayed-Draw Lenders shall make Delayed-Draw Term Loans by executing and delivering to the
Administrative Agent a Delayed-Draw Activation Notice (which notice must be received by the
Administrative Agent prior to 10:00 A.M., New York City time, five Business Days prior to the
proposed Delayed-Draw Closing Date) specifying (x) the amount of such Delayed-Draw Term Loans,
(y) the applicable Delayed-Draw Closing Date and (z) the Type of such Delayed-Draw Term Loans.
Upon receipt of such notice the Administrative Agent shall promptly notify each Delayed-Draw
Term Lender thereof. Not later than 12:00 Noon, New York City time, on the Delayed-Draw
Closing Date each Delayed-Draw Term Lender shall make available to the Administrative Agent at
the Funding Office an amount in immediately available funds equal to the Delayed-Draw Term Loan
to be made by such Lender. The Administrative Agent shall promptly make available to the
Borrower on the Delayed-Draw Closing Date, by wire transfer of immediately available funds to a
bank account designated in writing by the Borrower, the aggregate of the amounts made available
to the Administrative Agent by the Delayed-Draw Term Lenders in immediately available funds.

Notwithstanding the foregoing, without the consent of the Required Lenders, (i) the aggregate
amount of borrowings of Delayed-Draw Term Loans shall not exceed the Delayed-Draw Term Commitments
of all Delayed-Draw Term Lenders, (ii) no more than five Delayed-Draw Closing Dates may be selected
by the Borrower during the Draw-Down Period.

                    2.3. Repayment of Term Loans. (a) The principal amount of the Initial Term Loans of
each Initial Term Lender shall be repayable in 28 installments (each due on the last day of each
calendar quarter), commencing on September 30, 2005, each of which shall be in an amount equal to
such Lender’s Initial Term Percentage multiplied by (i) in the case of the first 24 such
installments, $425,000 and (ii) in the case of the final four such installments (which shall be due
on September 30, 2011, December 31, 2011, March 31, 2012 and the Term Loan Maturity Date),
$39,950,000.

          (b) The principal amount of each Delayed-Draw Term Loan of each Delayed-Draw Term Lender
shall be repayable, (i) for all fiscal quarters ending prior to September 30, 2011, in equal
consecutive quarterly installments beginning (with respect to each such Delayed-Draw Term Loan)
with the first full calendar quarter ending after the making of such Delayed-Draw Term Loan
(each due on the last day of each calendar quarter) of an amount equal to 0.25% of the initial
principal amount of such Lender’s Delayed-Draw Term

 

 

27

Loans and (ii) for the fiscal quarters
ending September 30, 2011, December 31, 2011 and March 31, 2012, and the payment to be made on
the Term Loan Maturity Date, in equal consecutive quarterly installments (each due on the last
day of each such calendar quarter, and on the Term Loan Maturity Date, as the case may be) of
an amount equal to the aggregate remaining principal balance of such Lender’s Delayed-Draw Term
Loans on September 29, 2011, divided by four.

          (c) In the event that any Incremental Term Loans are made on an Increased Amount Date, the
Borrower shall repay such Incremental Term Loans on the dates and in the amounts set forth in
the Incremental Assumption Agreement, provided that all Incremental Term Loans shall mature on
the Term Loan Maturity Date.

                    2.4. Termination or Reduction of Delayed-Draw Term Commitments. The Borrower shall
have the right, upon not less than three Business Days’ notice to the Administrative Agent, to
terminate the Delayed-Draw Term Commitments or, from time to time, to reduce the amount of the
Delayed-Draw Term Commitments; provided that no such termination or reduction of Delayed-Draw Term
Commitments shall be permitted if, after giving effect thereto and to any prepayments of the
Delayed-Draw Term Loans made on the effective date thereof, the aggregate Delayed-Draw Term Loans
then outstanding would exceed the Total Delayed-Draw Term Commitments. Any such reduction shall be
in an amount equal to $1,000,000, or a whole multiple thereof, and shall reduce permanently the
Delayed-Draw Term Commitments then in effect.

SECTION 3. AMOUNT AND TERMS OF REVOLVING COMMITMENTS

                    3.1. Revolving Commitments. (a) Subject to the terms and conditions hereof, each
Revolving Lender severally agrees to make revolving credit loans (such loans, together with any
Incremental Revolving Loans, the “Revolving Loans”) to the Borrower from time to time
during the Revolving Commitment Period in an aggregate principal amount at any one time outstanding
which, when added to such Lender’s Revolving Percentage of the sum of (i) the L/C Obligations then
outstanding and (ii) the aggregate principal amount of the Swingline Loans then outstanding, does
not exceed the amount
of such Lender’s Revolving Commitment. During the Revolving Commitment Period the Borrower
may use the Revolving Commitments by borrowing, prepaying and reborrowing the Revolving Loans in
whole or in part, all in accordance with the terms and conditions hereof. The Revolving Loans may
from time to time be Eurodollar Loans or Base Rate Loans, as determined by the Borrower and
notified to the Administrative Agent in accordance with Sections 3.2 and 4.3.

          (b) The Borrower shall repay all outstanding Revolving Loans on the Revolving Termination
Date.

                    3.2. Procedure for Revolving Loan Borrowing. The Borrower may borrow under the
Revolving Commitments during the Revolving Commitment Period on any Business Day, provided that the
Borrower shall give the Administrative Agent irrevocable notice (which notice must be received by
the Administrative Agent prior to 12:00 Noon, New York City time, (a) three Business Days prior to
the requested Borrowing Date, in the case of Eurodollar Loans, or (b) one Business Day prior to the
requested Borrowing Date, in the case of Base Rate Loans)

 

 

28

(provided that any such notice of a
borrowing of Base Rate Loans to finance payments required to be made pursuant to Section 3.5 may be
given not later than 10:00 A.M., New York City time, on the date of the proposed borrowing),
specifying (i) the amount and Type of Revolving Loans to be borrowed, (ii) the requested Borrowing
Date and (iii) in the case of Eurodollar Loans, the respective amounts of each such Type of Loan
and the respective lengths of the initial Interest Period therefor. Any Revolving Loans made on
the Closing Date shall initially be Base Rate Loans and, unless otherwise agreed by the
Administrative Agent in its sole discretion, no Revolving Loan may be made as, converted into or
continued as a Eurodollar Loan having an Interest Period in excess of one month prior to the
Syndication Date. Each borrowing under the Revolving Commitments shall be in an amount equal to
(x) in the case of Base Rate Loans, $1,000,000 or a whole multiple of $250,000 in excess thereof
(or, if the then aggregate Available Revolving Commitments are less than $1,000,000, such lesser
amount) and (y) in the case of Eurodollar Loans, $5,000,000 or a whole multiple of $1,000,000 in
excess thereof; provided, that (x) the Swingline Lender may request, on behalf of the Borrower,
borrowings under the Revolving Commitments that are Base Rate Loans in other amounts pursuant to
Section 3.4 and (y) borrowings of Base Rate Loans pursuant to Section 3.11 shall not be subject to
the foregoing minimum amounts. Upon receipt of any such notice from the Borrower, the
Administrative Agent shall promptly notify each Revolving Lender thereof. Each Revolving Lender
will make the amount of its pro rata share of each borrowing available to the Administrative Agent
for the account of the Borrower at the Funding Office prior to 12:00 Noon, New York City time, on
the Borrowing Date requested by the Borrower in funds immediately available to the Administrative
Agent. Such borrowing will then be made available to the Borrower by the Administrative Agent on
the Borrowing Date, by wire transfer of immediately available funds to a bank account designated by
the Borrower in writing, the aggregate of the amounts made available to the Administrative Agent by
the Revolving Lenders in immediately available funds. Not more than $10,000,000 of Revolving Loans
shall be made on the Closing Date.

                    3.3. Swingline Commitment. (a) Subject to the terms and conditions hereof, the Swingline Lender agrees to make a
portion of the credit otherwise available to the Borrower under the Revolving Commitments from time
to time during the Revolving Commitment Period by making swing line loans (“Swingline
Loans”) to the Borrower; provided that (i) the aggregate principal amount of Swingline Loans
outstanding at any time shall not exceed the Swingline Commitment then in effect (notwithstanding
that the Swingline Loans outstanding at any time, when aggregated with the Swingline Lender’s other
outstanding Revolving Loans hereunder, may exceed the Swingline Commitment then in effect) and (ii)
the Borrower shall not request, and the Swingline Lender shall not make, any Swingline Loan if,
after giving effect to the making of such Swingline Loan, the aggregate amount of the Available
Revolving Commitments would be less than zero. During the Revolving Commitment Period, the
Borrower may use the Swingline Commitment by borrowing, repaying and reborrowing, all in accordance
with the terms and conditions hereof. Swingline Loans shall be Base Rate Loans only.

          (b) The Borrower shall repay all outstanding Swingline Loans on the Revolving Termination
Date.

                    3.4. Procedure for Swingline Borrowing; Refunding of Swingline Loans. (a) Whenever
the Borrower desires that the Swingline Lender make Swingline Loans it shall give the Swingline
Lender irrevocable telephonic notice confirmed promptly in writing (which

 

 

29

telephonic notice must be
received by the Swingline Lender not later than 1:00 P.M., New York City time, on the proposed
Borrowing Date), specifying (i) the amount to be borrowed and (ii) the requested Borrowing Date
(which shall be a Business Day during the Revolving Commitment Period). Each borrowing under the
Swingline Commitment shall be in an amount equal to $500,000 or a whole multiple of $100,000 in
excess thereof. Not later than 3:00 P.M., New York City time, on the Borrowing Date specified in a
notice in respect of Swingline Loans, the Swingline Lender shall make available to the
Administrative Agent at the Funding Office an amount in immediately available funds equal to the
amount of the Swingline Loan to be made by the Swingline Lender. The Administrative Agent shall
make the proceeds of such Swingline Loan available to the Borrower on such Borrowing Date by wire
transfer of immediately available funds to a bank account designated by the Borrower in writing.

          (b) The Swingline Lender, at any time and from time to time in its sole and absolute
discretion may, on behalf of the Borrower (which hereby irrevocably directs the Swingline
Lender to act on its behalf), on one Business Day’s notice given by the Swingline Lender no
later than 12:00 Noon, New York City time, request each Revolving Lender to make, and each
Revolving Lender hereby agrees to make, a Revolving Loan, in an amount equal to such Revolving
Lender’s Revolving Percentage of the aggregate amount of the Swingline Loans (the “Refunded
Swingline Loans”) outstanding on the date of such notice, to repay the Swingline Lender.
Each Revolving Lender shall make the amount of such Revolving Loan available to the
Administrative Agent at the Funding Office in immediately available funds, not later than 10:00
A.M., New York City time, one Business Day after the date of such notice. The proceeds of such
Revolving Loans shall be immediately made available by the Administrative Agent to the
Swingline Lender for application by the Swingline Lender to the repayment of the Refunded
Swingline Loans. The Borrower irrevocably authorizes the Swingline Lender to charge the
Borrower’s accounts with the
Administrative Agent (up to the amount available in each such account) in order to
immediately pay the amount of such Refunded Swingline Loans to the extent amounts received from
the Revolving Lenders are not sufficient to repay in full such Refunded Swingline Loans.

          (c) If prior to the time a Revolving Loan would have otherwise been made pursuant to
Section 3.4(b), one of the events described in Section 9(f) shall have occurred and be
continuing with respect to the Borrower or if for any other reason, as determined by the
Swingline Lender in its sole discretion, Revolving Loans may not be made as contemplated by
Section 3.4(b), each Revolving Lender shall, on the date such Revolving Loan was to have been
made pursuant to the notice referred to in Section 3.4(b) (the “Refunding Date”),
purchase for cash an undivided participating interest in the then outstanding Swingline Loans
by paying to the Swingline Lender an amount (the “Swingline Participation Amount”)
equal to (i) such Revolving Lender’s Revolving Percentage times (ii) the sum of the
aggregate principal amount of Swingline Loans then outstanding that were to have been repaid
with such Revolving Loans.

          (d) Whenever, at any time after the Swingline Lender has received from any Revolving
Lender such Lender’s Swingline Participation Amount, the Swingline Lender receives any payment
on account of the Swingline Loans, the Swingline Lender will distribute to such Lender its
Swingline Participation Amount (appropriately adjusted, in the

 

 

30

case of interest payments, to
reflect the period of time during which such Lender’s participating interest was outstanding
and funded and, in the case of principal and interest payments, to reflect such Lender’s
pro rata portion of such payment if such payment is not sufficient to pay the
principal of and interest on all Swingline Loans then due); provided, however,
that in the event that such payment received by the Swingline Lender is required to be
returned, such Revolving Lender will return to the Swingline Lender any portion thereof
previously distributed to it by the Swingline Lender.

          (e) Each Revolving Lender’s obligation to make the Loans referred to in Section 3.4(b) and
to purchase participating interests pursuant to Section 3.4(c) shall be absolute and
unconditional and shall not be affected by any circumstance, including (i) any setoff,
counterclaim, recoupment, defense or other right that such Revolving Lender or the Borrower may
have against the Swingline Lender, the Borrower or any other Person for any reason whatsoever;
(ii) the occurrence or continuance of a Default or an Event of Default or the failure to
satisfy any of the other conditions specified in Section 6; (iii) any adverse change in the
condition (financial or otherwise) of the Borrower; (iv) any breach of this Agreement or any
other Loan Document by the Borrower, any other Loan Party or any other Revolving Lender; or (v)
any other circumstance, happening or event whatsoever, whether or not similar to any of the
foregoing.

                    3.5. Commitment Fees, etc. (a) The Borrower agrees to pay to the Administrative
Agent for the account of each Revolving Lender a commitment fee for the period from and including
the Closing Date to the last day of the Revolving Commitment Period, computed at the Commitment Fee
Rate on the average daily amount of the Available Revolving Commitment of such Lender during the
period
for which payment is made, payable quarterly in arrears on the last day of each March, June,
September and December and on the Revolving Termination Date, commencing on the first of such dates
to occur after the date hereof.

          (b) The Borrower agrees to pay to the Administrative Agent for the account of each
Delayed-Draw Term Lender a commitment fee for the period from and including the Closing Date to
the final day of the Draw-Down Period, computed on the average daily amount of the Available
Delayed-Draw Term Commitment of such Lender during the period for which payment is made,
payable quarterly in arrears on the last day of each March, June, September and December and on
the final day of the Draw-Down Period, commencing on the first of such dates to occur after the
date hereof, in each case at the rate per annum set forth below opposite such date.

	 	 	 
	 	 	Delayed-Draw Term
	 Fee Payment Date	 	Commitment Fee Rate
	June 30, 2005
	 	0.75%
	 
	 	 
	September 30, 2005
	 	0.75%
	 
	 	 
	December 31, 2005
	 	0.75%
	 
	 	 
	March 31, 2006
	 	1.00%
	 
	 	 
	June 30, 2006
	 	1.00%

 

 

31

	 	 	 	 	 
	 	 	Delayed-Draw Term
	 Fee Payment Date	 	Commitment Fee Rate
	September 30, 2006
	 	 	1.00	%
	 
	 	 	 	 
	December 31, 2006
	 	 	1.00	%
	 
	 	 	 	 
	March 31, 2007
	 	 	1.50	%
	 
	 	 	 	 
	Final Day of Draw-Down Period
	 	 	1.50	%

          (c) The Borrower agrees to pay to the Administrative Agent the fees in the amounts and on
the dates previously agreed to in writing by the Borrower and the Administrative Agent.

                    3.6. Termination or Reduction of Revolving Commitments. The Borrower shall have the
right, upon not less than three Business Days’ notice to the Administrative Agent, to terminate the
Revolving Commitments or, from time to time, to reduce the amount of the Revolving Commitments;
provided that no such termination or reduction of Revolving Commitments shall be permitted if,
after giving effect thereto and to any prepayments of the Revolving Loans and Swingline Loans made
on the effective date thereof, the Total Revolving Extensions of Credit would exceed the Total
Revolving Commitments. Any such reduction shall be in an amount equal to $1,000,000, or a whole
multiple thereof, and shall reduce permanently the Revolving Commitments then in effect.

                    3.7. L/C Commitment. (a) Subject to the terms and conditions hereof, the Issuing Lender, in reliance on the
agreements of the other Revolving Lenders set forth in Section 3.10(a), agrees to issue letters of
credit (“Letters of Credit”) for the account of the Borrower on any Business Day during the
Revolving Commitment Period in such form as may be approved from time to time by the Issuing
Lender; provided that the Issuing Lender shall have no obligation to issue any Letter of Credit if,
after giving effect to such issuance, (i) the L/C Obligations would exceed the L/C Commitment or
(ii) the aggregate amount of the Available Revolving Commitments would be less than zero. Each
Letter of Credit shall (i) be denominated in Dollars, (ii) have a face amount of at least $100,000
(unless otherwise agreed by the Issuing Lender) and (iii) expire no later than the earlier of (x)
the first anniversary of its date of issuance and (y) the date that is five Business Days prior to
the Revolving Termination Date, provided that any Letter of Credit with a term not greater than
one-year may provide for the renewal thereof for additional periods not greater than one year
(which shall in no event extend beyond the date referred to in clause (y) above or in the L/C
Issuance Side Letter).

          (b) The Issuing Lender shall not at any time be obligated to issue any Letter of Credit
hereunder if such issuance would conflict with, or cause the Issuing Lender or any L/C
Participant to exceed any limits imposed by, any applicable Requirement of Law.

                    3.8. Procedure for Issuance of Letter of Credit. The Borrower may from time to time
request that the Issuing Lender issue a Letter of Credit by delivering to the Administrative Agent
at its address for notices specified herein an Application therefor. Upon receipt of any
Application, the Administrative Agent will notify the Issuing Lender of the amount, the beneficiary
and the requested expiration of the requested Letter of Credit, and upon receipt of confirmation
from the Administrative Agent that after giving effect to the requested

 

 

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issuance, the Available
Revolving Commitments would not be less than zero, the Issuing Lender will process such Application
(in each case to be completed to the satisfaction of the Issuing Lender, and accompanied by such
other certificates, documents and other papers and information as the Issuing Lender may reasonably
request) and any certificate, document or other papers and information delivered to it in
connection therewith in accordance with its customary procedures and shall promptly cause the
Letter of Credit to be issued on the date (the “Issuing Date”) requested thereby (but in no
event shall the Issuing Lender be required to issue any Letter of Credit earlier than the time set
forth in the L/C Issuance Side Letter) by issuing the original of such Letter of Credit to the
beneficiary thereof or as otherwise may be agreed to by the Issuing Lender and the Borrower. The
Issuing Lender shall furnish a copy of such Letter of Credit to the Borrower (with a copy to the
Administrative Agent) promptly following the issuance thereof. The Issuing Lender shall promptly
furnish to the Administrative Agent, which shall in turn promptly furnish to the Lenders, notice of
the issuance of each Letter of Credit (including the amount thereof).

                    3.9. Fees and Other Charges. (a) The Borrower will pay a fee on all outstanding
Letters of Credit at a per annum rate equal to the Applicable Margin then in effect with respect to
Eurodollar Loans under the Revolving Facility, shared ratably among the Revolving Lenders and
payable quarterly in arrears on each L/C Fee Payment Date after the Issuance Date. In addition,
the Borrower shall pay to
the Issuing Lender for its own account a fronting fee on the undrawn and unexpired amount of
each Letter of Credit equal to 0.30% per annum, payable quarterly in arrears on each L/C Fee
Payment Date after the Issuance Date.

          (b) In addition to the foregoing fees, the Borrower shall pay or reimburse the Issuing
Lender for such normal and customary costs and expenses as are incurred or charged by the
Issuing Lender in issuing, negotiating, effecting payment under, amending or otherwise
administering any Letter of Credit.

                    3.10. L/C Participations. (a) The Issuing Lender irrevocably agrees to grant and
hereby grants to each L/C Participant, and, to induce the Issuing Lender to cause Letters of Credit
to be issued hereunder, each L/C Participant irrevocably agrees to accept and purchase and hereby
accepts and purchases from the Issuing Lender, on the terms and conditions set forth below, for
such L/C Participant’s own account and risk an undivided interest equal to such L/C Participant’s
Revolving Percentage in the Issuing Lender’s obligations and rights under and in respect of each
Letter of Credit issued hereunder and the amount of each draft paid by the Issuing Lender
thereunder. Each L/C Participant unconditionally and irrevocably agrees with the Issuing Lender
that, if a draft is paid under any Letter of Credit for which the Issuing Lender is not reimbursed
in full by the Borrower in accordance with the terms of this Agreement, such L/C Participant shall
pay to the Administrative Agent, for the account of the Issuing Lender, upon demand of the Issuing
Lender an amount equal to such L/C Participant’s Revolving Percentage of the amount of such draft,
or any part thereof, that is not so reimbursed. The Administrative Agent shall promptly forward
such amounts to the Issuing Lender.

          (b) If any amount required to be paid by any L/C Participant to the Administrative Agent
for the account of the Issuing Lender pursuant to Section 3.10(a) in respect of any
unreimbursed portion of any payment made by the Issuing Lender under any Letter of Credit is
paid to the Administrative Agent for the account of the Issuing Lender

 

 

33

within three Business
Days after the date such payment is due, such L/C Participant shall pay to the Administrative
Agent for the account of the Issuing Lender on demand an amount equal to the product of (i)
such amount, times (ii) the daily average Federal Funds Effective Rate during the period from
and including the date such payment is required to the date on which such payment is
immediately available to the Issuing Lender, times (iii) a fraction the numerator of which is
the number of days that elapse during such period and the denominator of which is 360. If any
such amount required to be paid by any L/C Participant pursuant to Section 3.10(a) is not made
available to the Administrative Agent for the account of the Issuing Lender by such L/C
Participant within three Business Days after the date such payment is due, the Issuing Lender
shall be entitled to recover from such L/C Participant, on demand, such amount with interest
thereon calculated from such due date at the rate per annum then applicable to Base Rate Loans
under the Revolving Facility. A certificate of the Issuing Lender submitted to any L/C
Participant with respect to any amounts owing under this Section shall be conclusive in the
absence of manifest error.

          (c) Whenever, at any time after the Issuing Lender has made payment under any Letter of
Credit and has received from any L/C Participant its pro rata share of
such payment in accordance with Section 3.10(a), the Administrative Agent or the Issuing
Lender receives any payment related to such Letter of Credit (whether directly from the
Borrower or otherwise, including proceeds of collateral applied thereto by the Issuing Lender),
or any payment of interest on account thereof, the Administrative Agent or the Issuing Lender,
as the case may be, will distribute to such L/C Participant its pro rata share
thereof; provided, however, that in the event that any such payment received by
Administrative Agent or the Issuing Lender, as the case may be, shall be required to be
returned by the Administrative Agent or the Issuing Lender, such L/C Participant shall return
to the Administrative Agent for the account of the Issuing Lender the portion thereof
previously distributed by the Administrative Agent or the Issuing Lender, as the case may be,
to it.

                    3.11. Reimbursement Obligation of the Borrower. The Borrower agrees to reimburse the
Issuing Lender on the Business Day next succeeding the Business Day on which the Issuing Lender
notifies the Borrower of the date and amount of a draft presented under any Letter of Credit and
paid by the Issuing Lender for the amount of (a) such draft so paid and (b) any taxes, fees,
charges or other costs or expenses incurred by the Issuing Lender in connection with such payment.
Each such payment shall be made to the Issuing Lender at its address for notices referred to herein
in Dollars and in immediately available funds. Interest shall be payable on any such amounts from
the date on which the relevant draft is paid until payment in full at the rate set forth in (i)
until the Business Day next succeeding the date of the relevant notice, Section 4.5(b) and (ii)
thereafter, Section 4.5(c). Each drawing under any Letter of Credit shall (unless an event of the
type described in clause (i) or (ii) of Section 9(f) shall have occurred and be continuing with
respect to the Borrower, in which case the procedures specified in Section 3.10 for funding by L/C
Participants shall apply) constitute a request by the Borrower to the Administrative Agent for a
borrowing pursuant to Section 3.2 of Base Rate Loans (or, at the option of the Administrative Agent
and the Swingline Lender in their sole discretion, a borrowing pursuant to Section 3.4 of Swingline
Loans) in the amount of such drawing. The Borrowing Date with respect to such borrowing shall be
the first date on which a borrowing of Revolving Loans (or, if applicable, Swingline Loans) could
be made, pursuant to Section 3.2 or, if applicable, Section 3.4), if the Administrative Agent had
received a notice of such borrowing

 

 

34

at the time the Administrative Agent receives notice from the
Issuing Lender of such drawing under such Letter of Credit.

                    3.12. Obligations Absolute. The Borrower’s obligations under Section 3.11 shall be
absolute and unconditional under any and all circumstances and irrespective of any setoff,
counterclaim or defense to payment that the Borrower may have or have had against the Issuing
Lender, any beneficiary of a Letter of Credit or any other Person. The Borrower also agrees with
the Issuing Lender that the Issuing Lender shall not be responsible for (except to the extent found
by a final and nonappealable decision of a court of competent jurisdiction to have resulted from
the gross negligence or willful misconduct of the Issuing Lender), and the Borrower’s Reimbursement
Obligations under Section 3.11 shall not be affected by, among other things, the validity or
genuineness of documents or of any endorsements thereon, even though such documents shall in fact
prove to be invalid, fraudulent or forged, or any dispute between or among the Borrower and
any beneficiary of any Letter of Credit or any other party to which such Letter of Credit may
be transferred or any claims whatsoever of the Borrower against any beneficiary of such Letter of
Credit or any such transferee. The Issuing Lender shall not be liable for any error, omission,
interruption or delay in transmission, dispatch or delivery of any message or advice, however
transmitted, in connection with any Letter of Credit, except for errors or omissions found by a
final and nonappealable decision of a court of competent jurisdiction to have resulted from the
gross negligence or willful misconduct of the Issuing Lender. The Borrower agrees that any action
taken or omitted by the Issuing Lender under or in connection with any Letter of Credit or the
related drafts or documents, if done in the absence of gross negligence or willful misconduct and
in accordance with the standards of care specified in the Uniform Commercial Code of the State of
New York, shall be binding on the Borrower and shall not result in any liability of the Issuing
Lender to the Borrower.

                    3.13. Letter of Credit Payments. If any draft shall be presented for payment under
any Letter of Credit, the Issuing Lender shall promptly notify the Borrower of the date and amount
thereof. The responsibility of the Issuing Lender to the Borrower in connection with any draft
presented for payment under any Letter of Credit shall, in addition to any payment obligation
expressly provided for in such Letter of Credit, be limited to determining that the documents
(including each draft) delivered under such Letter of Credit in connection with such presentment
are substantially in conformity with such Letter of Credit.

                    3.14. Applications; L/C Issuance Side Letter. To the extent that any provision of any
Application related to any Letter of Credit is inconsistent with the provisions of this Section 3,
the provisions of this Section 3 shall apply. To the extent that any provision of the L/C Issuance
Side Letter is inconsistent with the provisions of Sections 3.7, 3.8, 3.9, 3.10, 3.11, 3.12 or 3.13
the provisions of the L/C Issuance Side Letter shall apply.

SECTION 4.   GENERAL PROVISIONS APPLICABLE

TO LOANS AND LETTERS OF CREDIT

                    4.1. Optional Prepayments. (a) The Borrower may at any time and from time to time
prepay the Loans, in whole or in part, without premium or penalty, upon irrevocable notice
delivered to the Administrative Agent no later than 12:00 Noon, New York City time, (x)

 

 

35

three
Business Days prior thereto, in the case of Eurodollar Loans, (y) one Business Day prior thereto,
in the case of Base Rate Loans, and (z) on the date of prepayment, in the case of Swingline Loans,
which notice shall specify the date and amount of prepayment and whether the prepayment is of
Eurodollar Loans or Base Rate Loans; provided, that if a Eurodollar Loan is prepaid on any day
other than the last day of the Interest Period applicable thereto, the Borrower shall also pay any
amounts owing pursuant to Section 4.11. Upon receipt of any such notice the Administrative Agent
shall promptly notify each relevant Lender thereof. If any such notice is given, the amount
specified in such notice
shall be due and payable on the date specified therein, together with (except in the case of
Revolving Loans that are Base Rate Loans and Swingline Loans) accrued interest to such date on the
amount prepaid. Partial prepayments of Term Loans and Revolving Loans shall be in an aggregate
principal amount of $1,000,000 or a whole multiple of $250,000 in excess thereof. Partial
prepayments of Swingline Loans shall be in an aggregate principal amount of $100,000 or a whole
multiple thereof.

          (b) Each optional prepayment in respect of the Initial Term Loans made prior to the second
anniversary of the Closing Date shall be accompanied by a pro rata reduction of the
Delayed-Draw Term Commitment of each Lender in effect at such time in the amount of such
optional prepayment.

                    4.2. Mandatory Prepayments and Commitment Reductions. (a) If any Capital Stock shall
be issued by any Group Member (other than any Capital Stock issued to any Group Member) or any
capital contribution is made to any Group Member (other than a capital contribution by any Group
Member), an amount equal to 50% of the Net Cash Proceeds thereof shall be applied on the date of
such issuance or contribution toward the prepayment of the Term Loans and the reduction of the
Revolving Commitments as set forth in Section 4.2(e).

          (b) If any Indebtedness shall be issued or incurred by any Group Member (other than
Excluded Indebtedness), an amount equal to 100% of the Net Cash Proceeds thereof shall be
applied on the date of such issuance or incurrence toward the prepayment of the Term Loans and
the reduction of the Revolving Commitments as set forth in Section 4.2(e).

          (c) If on any date any Group Member shall receive Net Cash Proceeds from any Asset Sale or
Recovery Event then, unless a Reinvestment Notice shall be delivered in respect thereof, 100%
of such Net Cash Proceeds shall be applied on such date toward the prepayment of the Term Loans
and the reduction of the Revolving Commitments as set forth in Section 4.2(e);
provided, that, notwithstanding the foregoing, (i) the aggregate Net Cash Proceeds of
Asset Sales and Recovery Events that may be excluded from the foregoing requirement pursuant to
a Reinvestment Notice shall not exceed $7,500,000 (in the case of Asset Sales) or $7,500,000
(in the case of Recovery Events) in any fiscal year of the Borrower and (ii) on each
Reinvestment Prepayment Date, an amount equal to the Reinvestment Prepayment Amount with
respect to the relevant Reinvestment Event shall be applied toward the prepayment of the Term
Loans and the reduction of the Revolving Commitments as set forth in Section 4.2(e).

          (d) If, for any fiscal year of the Borrower commencing with the fiscal year ending
December 31, 2005, there shall be Excess Cash Flow, the Borrower shall, on the

 

 

36

relevant Excess
Cash Flow Application Date, apply the ECF Percentage of such Excess Cash Flow toward the
prepayment of the Term Loans and the reduction of the Revolving Commitments as set forth in
Section 4.2(e). Each such prepayment and commitment reduction shall be made on a date (an
“Excess Cash Flow Application Date”) no later than five Business Days after the earlier
of (i) the date on which the financial statements of the
Borrower referred to in Section 7.1(a), for the fiscal year with respect to which such
prepayment is made, are required to be delivered to the Lenders and (ii) the date such
financial statements are actually delivered.

          (e) Amounts to be applied in connection with prepayments and Commitment reductions made
pursuant to Section 4.2 shall be applied, first, to the prepayment of the Term Loans
ratably between the Initial Term Loans, the Delayed-Draw Term Loans and the Incremental Term
Loans based on the outstanding principal amounts thereof at such time and, second, to
reduce permanently the Revolving Commitments. Any such reduction of the Revolving Commitments
shall be accompanied by prepayment of the Revolving Loans and/or Swingline Loans to the extent,
if any, that the Total Revolving Extensions of Credit exceed the amount of the Total Revolving
Commitments as so reduced, provided that if the aggregate principal amount of Revolving
Loans and Swingline Loans then outstanding is less than the amount of such excess (because L/C
Obligations constitute a portion thereof), the Borrower shall, to the extent of the balance of
such excess, replace outstanding Letters of Credit and/or deposit an amount equal to such
excess in cash in a cash collateral account established with the Administrative Agent for the
benefit of the Lenders on terms and conditions satisfactory to the Administrative Agent. The
application of any prepayment pursuant to Section 4.2 shall be made, first, to Base
Rate Loans and, second, to Eurodollar Loans. Each prepayment of the Loans under
Section 4.2 (except in the case of Revolving Loans that are Base Rate Loans and Swingline
Loans) shall be accompanied by accrued interest to the date of such prepayment on the amount
prepaid.

                    4.3. Conversion and Continuation Options. (a) The Borrower may elect from time to
time to convert Eurodollar Loans to Base Rate Loans by giving the Administrative Agent prior
irrevocable notice of such election no later than 11:00 A.M., New York City time, on the Business
Day preceding the proposed conversion date, provided that any such conversion of Eurodollar Loans
may only be made on the last day of an Interest Period with respect thereto. The Borrower may
elect from time to time to convert Base Rate Loans to Eurodollar Loans by giving the Administrative
Agent prior irrevocable notice of such election no later than 11:00 A.M., New York City time, on
the third Business Day preceding the proposed conversion date (which notice shall specify the
length of the initial Interest Period therefor), provided that no Base Rate Loan under a particular
Facility may be converted into a Eurodollar Loan when any Event of Default has occurred and is
continuing and the Administrative Agent or the Majority Facility Lenders in respect of such
Facility have determined in its or their sole discretion not to permit such conversions. Upon
receipt of any such notice the Administrative Agent shall promptly notify each relevant Lender
thereof.

          (b) Any Eurodollar Loan may be continued as such upon the expiration of the then current
Interest Period with respect thereto by the Borrower giving irrevocable notice to the
Administrative Agent, in accordance with the applicable provisions of the term “Interest
Period” set forth in Section 1.1, of the length of the next Interest Period to be applicable to

 

 

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such Loans, provided that no Eurodollar Loan under a particular Facility may be
continued as such when any Event of Default has occurred and is continuing and the
Administrative Agent has or the Majority Facility Lenders in respect of such Facility have
determined in its or their sole discretion not to permit such continuations, and
provided,
further, that if the Borrower shall fail to give any required notice as described
above in this paragraph or if such continuation is not permitted pursuant to the preceding
proviso such Loans shall be automatically converted to Base Rate Loans on the last day of such
then expiring Interest Period. Upon receipt of any such notice the Administrative Agent shall
promptly notify each relevant Lender thereof.

                    4.4. Limitations on Eurodollar Tranches. Notwithstanding anything to the contrary in
this Agreement, all borrowings, conversions and continuations of Eurodollar Loans hereunder and all
selections of Interest Periods hereunder shall be in such amounts and be made pursuant to such
elections so that, (a) after giving effect thereto, the aggregate principal amount of the
Eurodollar Loans comprising each Eurodollar Tranche shall be equal to $5,000,000 or a whole
multiple of $1,000,000 in excess thereof and (b) no more than ten Eurodollar Tranches shall be
outstanding at any one time prior to any increase pursuant to Section 4.16, and no more than twelve
Eurodollar Tranches shall be outstanding at any one time thereafter.

                    4.5. Interest Rates and Payment Dates. (a) Each Eurodollar Loan shall bear interest
for each day during each Interest Period with respect thereto at a rate per annum equal to the
Eurodollar Rate determined for such day plus the Applicable Margin.

          (b) Each Base Rate Loan shall bear interest at a rate per annum equal to the Base Rate
plus the Applicable Margin.

          (c) (i) If all or a portion of the principal amount of any Loan or Reimbursement
Obligation shall not be paid when due (whether at the stated maturity, by acceleration or
otherwise), such overdue amount shall bear interest at a rate per annum equal to (x) in the
case of the Loans, the rate that would otherwise be applicable thereto pursuant to the
foregoing provisions of this Section plus 2% or (y) in the case of Reimbursement
Obligations, the rate applicable to Base Rate Loans under the Revolving Facility plus
2%, and (ii) if all or a portion of any interest payable on any Loan or Reimbursement
Obligation or any commitment fee or other amount payable hereunder shall not be paid when due
(whether at the stated maturity, by acceleration or otherwise), such overdue amount shall bear
interest at a rate per annum equal to the rate then applicable to Base Rate Loans under the
relevant Facility plus 2% (or, in the case of any such other amounts that do not relate
to a particular Facility, the rate then applicable to Base Rate Loans under the Revolving
Facility plus 2%), in each case, with respect to clauses (i) and (ii) above, from the
date of such non-payment until such amount is paid in full (as well after as before judgment).

          (d) Interest shall be payable in arrears on each Interest Payment Date, provided
that interest accruing pursuant to paragraph (c) of this Section shall be payable from time to
time on demand.

                    4.6. Computation of Interest and Fees. (a) Interest and fees payable pursuant hereto shall be calculated on the basis of a
360-day year for the actual days elapsed, except that,

 

 

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with respect to Base Rate Loans the rate of
interest on which is calculated on the basis of the Prime Rate, the interest thereon shall be
calculated on the basis of a 365- (or 366-, as the case may be) day year for the actual days
elapsed. The Administrative Agent shall as soon as practicable notify the Borrower and the
relevant Lenders of each determination of a Eurodollar Rate. Any change in the interest rate on a
Loan resulting from a change in the Base Rate or the Eurocurrency Reserve Requirements shall become
effective as of the opening of business on the day on which such change becomes effective. The
Administrative Agent shall as soon as practicable notify the Borrower and the relevant Lenders of
the effective date and the amount of each such change in interest rate.

          (b) Each determination of an interest rate by the Administrative Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower and the Lenders in
the absence of manifest error. The Administrative Agent shall, at the request of the Borrower,
deliver to the Borrower a statement showing the quotations used by the Administrative Agent in
determining any interest rate pursuant to Section 4.5(a).

                    4.7. Inability to Determine Interest Rate. If prior to the first day of any Interest
Period:

          (a) the Administrative Agent shall have determined (which determination shall be
conclusive and binding upon the Borrower) that, by reason of circumstances affecting the
relevant market, adequate and reasonable means do not exist for ascertaining the Eurodollar
Rate for such Interest Period, or

          (b) the Administrative Agent shall have received notice from the Majority Facility
Lenders in respect of the relevant Facility that the Eurodollar Rate determined or to be
determined for such Interest Period will not adequately and fairly reflect the cost to such
Lenders (as conclusively certified by such Lenders) of making or maintaining their affected
Loans during such Interest Period,

the Administrative Agent shall give telecopy or telephonic notice thereof to the Borrower and the
relevant Lenders as soon as practicable thereafter. If such notice is given (x) any Eurodollar
Loans under the relevant Facility requested to be made on the first day of such Interest Period
shall be made as Base Rate Loans, (y) any Loans under the relevant Facility that were to have been
converted on the first day of such Interest Period to Eurodollar Loans shall be continued as Base
Rate Loans and (z) any outstanding Eurodollar Loans under the relevant Facility shall be converted,
on the last day of the then-current Interest Period, to Base Rate Loans. Until such notice has
been withdrawn by the Administrative Agent, no further Eurodollar Loans under the relevant Facility
shall be made or continued as such, nor shall the Borrower have the right to convert Loans under
the relevant Facility to Eurodollar Loans.

                    4.8. Pro Rata Treatment and Payments. (a) Each borrowing by the Borrower from the
Lenders hereunder, each payment by the Borrower on account of any commitment fee and any reduction
of the Commitments of the
Lenders shall be made pro rata according to the respective Initial Term Percentages,
Delayed-Draw Term Percentages or Revolving Percentages, as the case may be, of the relevant
Lenders.

 

 

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          (b) Each payment (including each prepayment) by the Borrower on account of principal of
and interest on the Term Loans shall be made pro rata according to the
respective outstanding principal amounts of the Term Loans then held by the Term Lenders. The
amount of each principal prepayment of the Term Loans shall be applied to reduce the then
remaining installments of the Initial Term Loans, the Delayed-Draw Term Loans and the
Incremental Term Loans, as the case may be, pro rata based upon the then
remaining principal amount thereof. Amounts prepaid on account of the Term Loans may not be
reborrowed.

          (c) Each payment (including each prepayment) by the Borrower on account of principal of
and interest on the Revolving Loans shall be made pro rata according to the
respective outstanding principal amounts of the Revolving Loans then held by the Revolving
Lenders.

          (d) All payments (including prepayments) to be made by the Borrower hereunder, whether on
account of principal, interest, fees or otherwise, shall be made without setoff or counterclaim
and shall be made prior to 12:00 Noon, New York City time, on the due date thereof to the
Administrative Agent, for the account of the Lenders, at the Funding Office, in Dollars and in
immediately available funds. The Administrative Agent shall distribute such payments to the
Lenders promptly upon receipt in like funds as received. If any payment hereunder (other than
payments on the Eurodollar Loans) becomes due and payable on a day other than a Business Day,
such payment shall be extended to the next succeeding Business Day. If any payment on a
Eurodollar Loan becomes due and payable on a day other than a Business Day, the maturity
thereof shall be extended to the next succeeding Business Day unless the result of such
extension would be to extend such payment into another calendar month, in which event such
payment shall be made on the immediately preceding Business Day. In the case of any extension
of any payment of principal pursuant to the preceding two sentences, interest thereon shall be
payable at the then applicable rate during such extension.

          (e) Unless the Administrative Agent shall have been notified in writing by any Lender
prior to a borrowing that such Lender will not make the amount that would constitute its share
of such borrowing available to the Administrative Agent, the Administrative Agent may assume
that such Lender is making such amount available to the Administrative Agent, and the
Administrative Agent may, in reliance upon such assumption, make available to the Borrower a
corresponding amount. If such amount is not made available to the Administrative Agent by the
required time on the Borrowing Date therefor, such Lender shall pay to the Administrative
Agent, on demand, such amount with interest thereon at a rate equal to the greater of (i) the
Federal Funds Effective Rate and (ii) a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation for the period until such
Lender makes such amount immediately available to the Administrative Agent. A certificate of
the Administrative Agent submitted to any Lender with respect to any amounts owing under this
paragraph shall be conclusive in the absence of manifest error. If such Lender’s share of such
borrowing is not made
available to the Administrative Agent by such Lender within three Business Days of such
Borrowing Date, the Administrative Agent shall also be entitled to recover such amount with
interest thereon at the rate per annum applicable to Base Rate Loans under the relevant

 

 

40

Facility, on demand, from the Borrower. Nothing in this paragraph shall be deemed to limit the
rights of the Borrower against any such Lender.

          (f) Unless the Administrative Agent shall have been notified in writing by the Borrower
prior to the date of any payment due to be made by the Borrower hereunder that the Borrower
will not make such payment to the Administrative Agent, the Administrative Agent may assume
that the Borrower is making such payment, and the Administrative Agent may, but shall not be
required to, in reliance upon such assumption, make available to the Lenders their respective
pro rata shares of a corresponding amount. If such payment is not made to the
Administrative Agent by the Borrower within three Business Days after such due date, the
Administrative Agent shall be entitled to recover, on demand, from each Lender to which any
amount which was made available pursuant to the preceding sentence, such amount with interest
thereon at the rate per annum equal to the daily average Federal Funds Effective Rate. Nothing
herein shall be deemed to limit the rights of the Administrative Agent or any Lender against
the Borrower.

                    4.9. Requirements of Law. (a) If the adoption of or any change in any Requirement of
Law or in the interpretation or application thereof or compliance by any Lender with any request or
directive (whether or not having the force of law) from any central bank or other Governmental
Authority made subsequent to the date hereof:

          (i) shall subject any Lender to any tax of any kind whatsoever with respect to this
Agreement, any Letter of Credit, any Application or any Eurodollar Loan made by it, or
change the basis of taxation of payments to such Lender in respect thereof (except for
Non-Excluded Taxes covered by Section 4.10 and changes in the rate of tax on the overall net
income of such Lender);

          (ii) shall impose, modify or hold applicable any reserve, special deposit, compulsory
loan or similar requirement against assets held by, deposits or other liabilities in or for
the account of, advances, loans or other extensions of credit by, or any other acquisition
of funds by, any office of such Lender that is not otherwise included in the determination
of the Eurodollar Rate hereunder; or

          (iii) shall impose on such Lender any other condition;

and the result of any of the foregoing is to increase the cost to such Lender, by an amount that
such Lender deems to be material, of making, converting into, continuing or maintaining Eurodollar
Loans or issuing or participating in Letters of Credit, or to reduce any amount receivable
hereunder in respect thereof, then, in any such case, the Borrower shall promptly pay such Lender,
upon its demand, any additional amounts necessary to compensate such Lender for such increased cost
or reduced amount receivable. If any Lender becomes entitled to claim any
additional amounts pursuant to this paragraph, it shall promptly notify the Borrower (with a copy
to the Administrative Agent) of the event by reason of which it has become so entitled.

          (b) If any Lender shall have determined that the adoption of or any change in any
Requirement of Law regarding capital adequacy or in the interpretation or application thereof
or compliance by such Lender or any corporation controlling such Lender with any

 

 

41

request or
directive regarding capital adequacy (whether or not having the force of law) from any
Governmental Authority made subsequent to the date hereof shall have the effect of reducing the
rate of return on such Lender’s or such corporation’s capital as a consequence of its
obligations hereunder or under or in respect of any Letter of Credit to a level below that
which such Lender or such corporation could have achieved but for such adoption, change or
compliance (taking into consideration such Lender’s or such corporation’s policies with respect
to capital adequacy) by an amount deemed by such Lender to be material, then from time to time,
after submission by such Lender to the Borrower (with a copy to the Administrative Agent) of a
written request therefor, the Borrower shall pay to such Lender such additional amount or
amounts as will compensate such Lender or such corporation for such reduction.

          (c) A certificate setting forth in reasonable detail any additional amounts payable
pursuant to this Section submitted by any Lender to the Borrower (with a copy to the
Administrative Agent) shall be conclusive in the absence of manifest error. Notwithstanding
anything to the contrary in this Section, the Borrower shall not be required to compensate a
Lender pursuant to this Section for any amounts incurred more than six months prior to the date
that such Lender notifies the Borrower of such Lender’s intention to claim compensation
therefor; provided that, if the circumstances giving rise to such claim have a
retroactive effect, then such six-month period shall be extended to include the period of such
retroactive effect. The obligations of the Borrower pursuant to this Section shall survive the
termination of this Agreement and the payment of the Loans and all other amounts payable
hereunder.

                    4.10. Taxes. (a) All payments made by the Borrower under this Agreement shall be
made free and clear of, and without deduction or withholding for or on account of, any present or
future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or
withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental
Authority, excluding net income taxes and franchise taxes (imposed in lieu of net income taxes)
imposed on any Agent or any Lender as a result of a present or former connection between such Agent
or such Lender and the jurisdiction of the Governmental Authority imposing such tax or any
political subdivision or taxing authority thereof or therein (other than any such connection
arising solely from such Agent or such Lender having executed, delivered or performed its
obligations or received a payment under, or enforced, this Agreement or any other Loan Document).
If any such non-excluded taxes, levies, imposts, duties, charges, fees, deductions or withholdings
(“Non-Excluded Taxes”) or Other Taxes are required to be withheld from any amounts payable
to any Agent or any Lender hereunder, the amounts so payable to such Agent or such Lender shall be
increased to the extent necessary to yield to such Agent or such Lender (after payment of all
Non-Excluded Taxes and Other Taxes) interest or any such other amounts payable hereunder at the
rates or in the amounts specified in this Agreement, provided, however,
that the Borrower shall not be required to increase any such amounts payable to any Lender
with respect to any Non-Excluded Taxes (i) that are attributable to such Lender’s failure to comply
with the requirements of paragraph (d) or (e) of this Section or (ii) that are United States
withholding taxes imposed on amounts payable to such Lender at the time such Lender becomes a party
to this Agreement, except to the extent that such Lender’s assignor (if any) was entitled, at the
time of assignment, to receive additional amounts from the Borrower with respect to such
Non-Excluded Taxes pursuant to this paragraph.

 

 

42

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

          (c) Whenever any Non-Excluded Taxes or Other Taxes are payable by the Borrower, as
promptly as possible thereafter the Borrower shall send to the Administrative Agent for its own
account or for the account of the relevant Agent or Lender, as the case may be, a certified
copy of an original official receipt received by the Borrower showing payment thereof. If the
Borrower fails to pay any Non-Excluded Taxes or Other Taxes when due to the appropriate taxing
authority or fails to remit to the Administrative Agent the required receipts or other required
documentary evidence, the Borrower shall indemnify the Agents and the Lenders for any
incremental taxes, interest or penalties that may become payable by any Agent or any Lender as
a result of any such failure.

          (d) Each Lender (or Transferee) that is not a “U.S. Person” as defined in Section
7701(a)(30) of the Code (a “Non-U.S. Lender”) shall deliver to the Borrower and the
Administrative Agent (or, in the case of a Participant, to the Lender from which the related
participation shall have been purchased) two copies of either U.S. Internal Revenue Service
Form W-8BEN or Form W-8ECI, or, in the case of a Non-U.S. Lender claiming exemption from U.S.
federal withholding tax under Section 871(h) or 881(c) of the Code with respect to payments of
“portfolio interest”, a statement substantially in the form of Exhibit F and a Form W-8BEN, or
any subsequent versions thereof or successors thereto, properly completed and duly executed by
such Non-U.S. Lender claiming complete exemption from, or a reduced rate of, U.S. federal
withholding tax on all payments by the Borrower under this Agreement and the other Loan
Documents. Such forms shall be delivered by each Non-U.S. Lender on or before the date it
becomes a party to this Agreement (or, in the case of any Participant, on or before the date
such Participant purchases the related participation). In addition, each Non-U.S. Lender shall
deliver such forms promptly upon the obsolescence or invalidity of any form previously
delivered by such Non-U.S. Lender. Each Non-U.S. Lender shall promptly notify the Borrower at
any time it determines that it is no longer in a position to provide any previously delivered
certificate to the Borrower (or any other form of certification adopted by the U.S. taxing
authorities for such purpose). Notwithstanding any other provision of this paragraph, a
Non-U.S. Lender shall not be required to deliver any form pursuant to this paragraph that such
Non-U.S. Lender is not legally able to deliver.

          (e) A Lender that is entitled to an exemption from or reduction of non-U.S. withholding
tax under the law of the jurisdiction in which the Borrower is located, or any treaty to which
such jurisdiction is a party, with respect to payments under this Agreement shall deliver to
the Borrower (with a copy to the Administrative Agent), at the time or times prescribed by
applicable law or reasonably requested by the Borrower, such
properly completed and executed documentation prescribed by applicable law as will permit
such payments to be made without withholding or at a reduced rate, provided that such
Lender is legally entitled to complete, execute and deliver such documentation and in such
Lender’s judgment such completion, execution or submission would not materially prejudice the
legal position of such Lender.

          (f) If any Agent or any Lender determines, in its sole discretion, that it has received a
refund of any Non-Excluded Taxes or Other Taxes as to which it has been

 

 

43

indemnified by the
Borrower or with respect to which the Borrower has paid additional amounts pursuant to this
Section 4.10, it shall pay over such refund to the Borrower (but only to the extent of
indemnity payments made, or additional amounts paid, by the Borrower under this Section 4.10
with respect to the Non-Excluded Taxes or Other Taxes giving rise to such refund), net of all
out-of-pocket expenses of such Agent or such Lender and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such refund);
provided, that the Borrower, upon the request of such Agent or such Lender, agrees to
repay the amount paid over to the Borrower (plus any penalties, interest or other charges
imposed by the relevant Governmental Authority) to such Agent or such Lender in the event such
Agent or such Lender is required to repay such refund to such Governmental Authority. This
paragraph shall not be construed to require any Agent or any Lender to make available its tax
returns (or any other information relating to its taxes which it deems confidential) to the
Borrower or any other Person.

          (g) The agreements in this Section shall survive the termination of this Agreement and the
payment of the Loans and all other amounts payable hereunder.

                    4.11. Indemnity. The Borrower agrees to indemnify each Lender and to hold each Lender
harmless from any loss or expense that such Lender may sustain or incur as a consequence of (a)
default by the Borrower in making a borrowing of, conversion into or continuation of Eurodollar
Loans after the Borrower has given a notice requesting the same in accordance with the provisions
of this Agreement, (b) default by the Borrower in making any prepayment of or conversion from
Eurodollar Loans after the Borrower has given a notice thereof in accordance with the provisions of
this Agreement or (c) the making of a prepayment of Eurodollar Loans on a day that is not the last
day of an Interest Period with respect thereto. Such indemnification may include an amount equal
to the excess, if any, of (i) the amount of interest that would have accrued on the amount so
prepaid, or not so borrowed, converted or continued, for the period from the date of such
prepayment or of such failure to borrow, convert or continue to the last day of such Interest
Period (or, in the case of a failure to borrow, convert or continue, the Interest Period that would
have commenced on the date of such failure) in each case at the applicable Eurodollar Rate for such
Loans provided for herein over (ii) the amount of interest (as reasonably determined by such
Lender) that would have accrued to such Lender on such amount by placing such amount on deposit for
a comparable period with leading banks in the interbank eurodollar market. A certificate as to any
amounts payable pursuant to this Section submitted to the Borrower by any Lender shall be
conclusive in the absence of manifest error. This covenant shall survive the termination of this
Agreement and the payment of the Loans and all other amounts payable hereunder.

                    4.12. Change of Lending Office. Each Lender agrees that, upon the occurrence of any
event giving rise to the operation of Section 4.9 or 4.10(a) with respect to such Lender, it will,
if requested by the Borrower, use reasonable efforts (subject to overall policy considerations of
such Lender) to designate another lending office for any Loans affected by such event with the
object of avoiding the consequences of such event; provided, that such designation is made
on terms that, in the sole judgment of such Lender, cause such Lender and its lending office(s) to
suffer no economic, legal or regulatory disadvantage, and provided, further, that nothing in this
Section shall affect or postpone any of the obligations of the Borrower or the rights of any Lender
pursuant to Section 4.9 or 4.10(a).

 

 

44

                    4.13. Replacement of Lenders. The Borrower shall be permitted to replace any Lender
that (a) requests reimbursement for amounts owing pursuant to Section 4.9 or 4.10(a), (b) is a
Non-Consenting Lender (as defined in Section 11.1) or (c) defaults in its obligation to make Loans
hereunder, with a replacement financial institution; provided that (i) such replacement does not
conflict with any Requirement of Law, (ii) no Event of Default shall have occurred and be
continuing at the time of such replacement, (iii) prior to any such replacement, such Lender shall
have taken no action under Section 4.12 so as to eliminate the continued need for payment of
amounts owing pursuant to Section 4.9 or 4.10(a), (iv) the replacement financial institution shall
purchase, at par, all Loans and other amounts owing to, or accrued for the benefit of, such
replaced Lender on or prior to the date of replacement, (v) the Borrower shall be liable to such
replaced Lender under Section 4.11 if any Eurodollar Loan owing to such replaced Lender shall be
purchased other than on the last day of the Interest Period relating thereto, (vi) the replacement
financial institution, if not already a Lender, shall be reasonably satisfactory to the
Administrative Agent and, in the case of any replacement Revolving Lender, the Issuing Lender,
(vii) the replaced Lender shall be obligated to make such replacement in accordance with the
provisions of Section 11.6 (provided that the Borrower shall be obligated to pay the registration
and processing fee referred to therein), (viii) until such time as such replacement shall be
consummated, the Borrower shall pay all additional amounts (if any) required pursuant to Section
4.9 or 4.10(a), as the case may be, and (ix) any such replacement shall not be deemed to be a
waiver of any rights that the Borrower, the Administrative Agent or any other Lender shall have
against the replaced Lender.

                    4.14. Evidence of Debt. (a) Each Lender shall maintain in accordance with its usual
practice an account or accounts evidencing indebtedness of the Borrower to such Lender resulting
from each Loan of such Lender from time to time, including the amounts of principal and interest
payable and paid to such Lender from time to time under this Agreement.

          (b) The Administrative Agent, on behalf of the Borrower, shall maintain the Register
pursuant to Section 11.6(a)(iv), and a subaccount therein for each Lender, in which shall be
recorded (i) the amount of each Loan made hereunder and any Note evidencing such Loan, the Type
of such Loan and each Interest Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and
payable from the Borrower to each Lender hereunder and (iii) both the amount of any sum
received by the Administrative Agent hereunder from the Borrower and each Lender’s share
thereof.

          (c) The entries made in the Register and the accounts of each Lender maintained pursuant
to Section 4.14(a) shall, to the extent permitted by applicable law, be prima
facie evidence of the existence and amounts of the obligations of the Borrower therein
recorded; provided, however, that the failure of any Lender or the
Administrative Agent to maintain the Register or any such account, or any error therein, shall
not in any manner affect the obligation of the Borrower to repay (with applicable interest) the
Loans made to the Borrower by such Lender in accordance with the terms of this Agreement.

                    4.15. Illegality. Notwithstanding any other provision herein, if the adoption of or
any change in any Requirement of Law or in the interpretation or application thereof shall make it
unlawful for any Lender to make or maintain Eurodollar Loans as contemplated by this Agreement, (a)
the commitment of such Lender hereunder to make Eurodollar Loans, continue

 

 

45

Eurodollar Loans as such
and convert Base Rate Loans to Eurodollar Loans shall forthwith be canceled and (b) such Lender’s
Loans then outstanding as Eurodollar Loans, if any, shall be converted automatically to Base Rate
Loans on the respective last days of the then current Interest Periods with respect to such Loans
or within such earlier period as required by law. If any such conversion of a Eurodollar Loan
occurs on a day which is not the last day of the then current Interest Period with respect thereto,
the Borrower shall pay to such Lender such amounts, if any, as may be required pursuant to Section
4.11.

                    4.16. Increase in Term Loans and Revolving Commitments. (a) The Borrower may, by
written notice to the Administrative Agent from time to time, request Incremental Term Loans and/or
Incremental Revolving Commitments in an aggregate amount not to exceed the Incremental Amount from
one or more Incremental Term Lenders and/or Incremental Revolving Lenders (which may include any
existing Lender) willing to provide such Incremental Term Loans and/or Incremental Revolving Loans,
as the case may be, in their own discretion; provided, that each Incremental Term Lender
and/or Incremental Revolving Lender, if not already a Lender hereunder, shall be subject to the
approval of the Administrative Agent and, in the case of Incremental Revolving Lenders only, the
Issuing Lender (which approval shall, in either case, not be unreasonably withheld). Such notice
shall set forth (i) the amount of the Incremental Term Loans and/or Incremental Revolving
Commitments being requested (which shall be in minimum increments of $15 million or equal to the
remaining Incremental Amount), (ii) the date on which such Incremental Term Loans are requested to
be made and/or Incremental Revolving Commitments are requested to become effective (the
“Increased Amount Date”), (iii) whether such Incremental Term Loans, if any, are to be term
loans on the same terms as the Initial Term Loans or term loans with terms different from the
outstanding Term Loans (“Other Term Loans”), (iv) the use of proceeds for such Incremental
Term Loan and (v) attaching pro forma financial statements demonstrating compliance on a pro forma
basis with the financial covenants set forth in Section 8.1 after giving effect to such Incremental
Term Loan and/or Incremental Revolving Commitments and the
Loans to be made thereunder and the application of the proceeds therefrom (including by giving
pro forma effect to any Permitted Acquisition financed thereby) as if made and applied on the date
of the most-recent financial statements of the Borrower delivered pursuant to Section 7.1.

          (b) The Borrower and each Incremental Term Lender and/or Incremental Revolving Lender
shall execute and deliver to the Administrative Agent an Incremental Assumption Agreement and
such other documentation as the Administrative Agent shall reasonably specify to evidence the
Incremental Term Loans of such Incremental Term Lender and/or Incremental Revolving Commitment
of such Incremental Revolving Lender. Each Incremental Assumption Agreement shall specify the
terms of the Incremental Term Loans to be made thereunder; provided, that, without the
prior written consent of the Required Lenders, (i) no Incremental Term Loans shall be permitted
to be made prior to the time that the Delayed-Draw Term Facility shall have been fully drawn,
(ii) the final maturity date of any Other Term Loans shall be no earlier than the Term Loan
Maturity Date and (iii) the average life to maturity of any Other Term Loans shall be no
shorter than the average life to maturity of the Term Loans and provided,
further, that if the interest rate margin in respect of any Other Term Loan exceeds the
Applicable Margin for the Term Loans by more than -1/4 of 1% (it being understood that any such
increase may take the form of original issue discount (“OID”), with OID being equated
to the interest rates in a manner

 

 

46

determined by the Administrative Agent based on an assumed
four-year life to maturity), such Applicable Margin shall be increased so that the interest
rate margin in respect of such Other Term Loan (giving effect to any OID issued in connection
with such Other Term Loan) is no more than -1/4 of 1% higher than the Applicable Margin for the
Term Loans. The Administrative Agent shall promptly notify each Lender as to the effectiveness
of each Incremental Assumption Agreement. Each of the parties hereto hereby agrees that, upon
the effectiveness of any Incremental Assumption Agreement, this Agreement shall be amended to
the extent (but only to the extent) necessary to reflect the existence and terms of the
Incremental Term Loans and/or Incremental Revolving Commitments evidenced thereby. Any such
deemed amendment may be memorialized in writing by the Administrative Agent with the Borrower’s
consent (not to be unreasonably withheld) and furnished to the other parties hereto.

          (c) Notwithstanding the foregoing, no Incremental Term Loan may be made and no Incremental
Revolving Commitment shall become effective under this Section 4.16 unless (i) on the date on
which such Loan is made or of such effectiveness, the conditions set forth in Section 6.2 shall
be satisfied and the Administrative Agent shall have received a certificate to that effect
dated such date and executed by a Responsible Officer of the Borrower, (ii) the Administrative
Agent shall have received legal opinions, board resolutions and other closing certificates and
documentation as required by the relevant Incremental Assumption Agreement and consistent with
those delivered on the Closing Date under Section 6.1 and such additional documents and filings
(including amendments to the Mortgages and other Security Documents and title endorsement bring
downs) as the Administrative Agent may reasonably require to assure that the Incremental Term
Loans and/or Incremental Revolving Loans are secured by the Collateral ratably with the
existing Term Loans and Revolving Loans and (iii) the Borrower and its Subsidiaries would be in
compliance with the financial covenants set forth in Section 8.1 on a pro forma basis after
giving effect to such Incremental Term Loans and/or Incremental Revolving Commitments
and the Loans to be made thereunder and the application of the proceeds therefrom as if
made and applied on such date.

          (d) Each of the parties hereto hereby agrees that the Administrative Agent may take any
and all action as may be reasonably necessary to ensure that all Incremental Term Loans (other
than Other Term Loans) and/or Incremental Revolving Loans, when originally made, are included
in each Borrowing of outstanding Term Loans or Revolving Loans on a pro rata basis, and the
Borrower agrees that Section 4.11 shall apply to any conversion of Eurocurrency Loans to Base
Rate Loans reasonably required by the Administrative Agent to effect the foregoing.

SECTION 5. REPRESENTATIONS AND WARRANTIES

                    To induce the Agents and the Lenders to enter into this Agreement and to make the Loans and
issue or participate in the Letters of Credit, the Borrower hereby represents and warrants to each
Agent and each Lender that:

 

 

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                    5.1. Financial Condition.

          (a) The unaudited pro forma consolidated balance sheet of the Borrower and its
consolidated Subsidiaries as at March 31, 2005 (including the notes thereto) (the “Pro
Forma Balance Sheet”), copies of which have heretofore been made available to each Lender,
has been prepared giving effect (as if such events had occurred on such date) to (i) the
consummation of the Acquisition, (ii) the Loans to be made on the Closing Date and the use of
proceeds thereof and (iii) the payment of estimated fees and expenses in connection with the
foregoing. The Pro Forma Balance Sheet has been prepared based on the best information
available to the Borrower as of the date of delivery thereof, and presents fairly in all
material respects on a pro forma basis the estimated financial position of Borrower and its
consolidated Subsidiaries as at March 31, 2005, assuming that the events specified in the
preceding sentence had actually occurred at such date.

          (b) (i) The audited consolidated balance sheets of each of the Borrower and the Target as
at December 31, 2002, December 31, 2003 and December 31, 2004, and the related consolidated
statements of income and of cash flows for the fiscal years ended on such dates, reported on by
and accompanied by unqualified reports from PricewaterhouseCoopers LLP or Ernst & Young LLP, as
the case may be (in the case of the Borrower) and Kerber, Eck and Braecael, LLP (in the case of
the Target), present fairly in all material respects the consolidated financial condition of
each of the Borrower and the Target, as the case may be, as at such dates, and the consolidated
results of their respective operations and its consolidated cash flows for the respective
fiscal years then ended.

      (ii) The unaudited consolidated balance sheet of each of the Borrower and the Target as
at March 31, 2005, and the related unaudited consolidated statements of income and cash
flows for the three-month period ended on such date, present fairly in all material respects
the consolidated financial condition of each of the Borrower and the Target, as the case may
be, as at such date, and the consolidated results of its operations
and its consolidated cash flows for the three-month period then ended (subject to
normal year-end audit adjustments).

All such financial statements, including the related schedules and notes thereto, have been
prepared in accordance with GAAP applied consistently throughout the periods involved (except as
approved by the aforementioned firm of accountants and disclosed therein). No Group Member has any
material Guarantee Obligations, contingent liabilities and liabilities for taxes, or any long-term
leases or unusual forward or long-term commitments, including any interest rate or foreign currency
swap or exchange transaction or other obligation in respect of derivatives, that are not reflected
in the most recent financial statements referred to in this paragraph. During the period from
December 31, 2004 to and including the date hereof there has been no Disposition by the Borrower or
the Target of any material part of its business or property.

                    5.2. No Change. Since December 31, 2004, there has been no development or event that
has had or could reasonably be expected to have a Material Adverse Effect.

                    5.3. Corporate Existence; Compliance with Law. Each Group Member (a) is duly
organized, validly existing and in good standing under the laws of the jurisdiction of its

 

 

48

organization, (b) has the power and authority, and the legal right, to own and operate its
property, to lease the property it operates as lessee and to conduct the business in which it is
currently engaged, (c) is duly qualified as a foreign corporation and in good standing under the
laws of each jurisdiction where its ownership, lease or operation of property or the conduct of its
business requires such qualification and (d) is in compliance with all Requirements of Law except,
in the case of clauses (c) and (d), to the extent that the failure to comply therewith could not,
in the aggregate, reasonably be expected to have a Material Adverse Effect.

                    5.4. Power; Authorization; Enforceable Obligations. Each Loan Party has the power and
authority, and the legal right, to make, deliver and perform the Loan Documents to which it is a
party and, in the case of the Borrower, to obtain extensions of credit hereunder. Each Loan Party
has taken all necessary organizational action to authorize the execution, delivery and performance
of the Loan Documents to which it is a party and, in the case of the Borrower, to authorize the
extensions of credit on the terms and conditions of this Agreement. No consent or authorization
of, filing with, notice to or other act by or in respect of, any Governmental Authority or any
other Person is required in connection with the Acquisition and the extensions of credit hereunder
or with the execution, delivery, performance, validity or enforceability of this Agreement or any
of the Loan Documents, except (i) consents, authorizations, filings and notices described in
Schedule 5.4, which consents, authorizations, filings and notices have been obtained or made and
are in full force and effect except as otherwise noted on such Schedule 5.4 and (ii) the filings
referred to in Section 5.19. Each Loan Document has been duly executed and delivered on behalf of
each Loan Party party thereto. This Agreement constitutes, and each other Loan Document upon
execution will constitute, a legal, valid and binding obligation of each Loan Party party thereto,
enforceable
against each such Loan Party in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
the enforcement of creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

                    5.5. No Legal Bar. The execution, delivery and performance of this Agreement and the
other Loan Documents, the issuance of Letters of Credit, the borrowings hereunder and the use of
the proceeds thereof will not violate any Requirement of Law or any Contractual Obligation of any
Group Member and will not result in, or require, the creation or imposition of any Lien on any of
their respective properties or revenues pursuant to any Requirement of Law or any such Contractual
Obligation (other than the Liens created by the Security Documents). No Requirement of Law or
Contractual Obligation applicable to the Borrower or any of its Subsidiaries could reasonably be
expected to have a Material Adverse Effect.

                    5.6. Litigation. No litigation, investigation or proceeding of or before any
arbitrator or Governmental Authority is pending or, to the knowledge of the Borrower, threatened by
or against any Group Member or against any of their respective properties or revenues (a) with
respect to any of the Loan Documents or any of the transactions contemplated hereby or thereby, or
(b) that could reasonably be expected to have a Material Adverse Effect.

 

 

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                    5.7. No Default. No Group Member is in default under or with respect to any of its
Contractual Obligations in any respect that could reasonably be expected to have a Material Adverse
Effect. No Default or Event of Default has occurred and is continuing.

                    5.8. Ownership of Property; Liens. Each Material Group Member has title in fee simple
to, or a valid leasehold interest in, all its material real property currently used in its
business, and good title to, or a valid leasehold interest in, all its other material property
currently used in its business, excluding minor defects in title that do not interfere with the use
of such real or personal property for their intended purposes and none of such property is subject
to any Lien except as permitted by Section 8.3.

                    5.9. Intellectual Property. Each Material Group Member owns, or is licensed to use,
all Intellectual Property necessary for the conduct of its business in all material respects as
currently conducted; no material claim has been asserted and is pending by any Person challenging
or questioning the use of any Intellectual Property, or the validity or effectiveness of any
Intellectual Property, material to its business, nor does the Borrower know of any valid basis for
any such claim; and the use of Intellectual Property by each Group Member does not infringe on the
rights of any
Person in any manner that would result in a claim against any Group Member that could
reasonably be expected to have a Material Adverse Effect.

                    5.10. Taxes. Each Group Member has filed or caused to be filed all Federal, state and
other material tax returns that are required to be filed and has paid all taxes shown to be due and
payable on said returns or on any assessments made against it or any of its property and all other
taxes, fees or other charges imposed on it or any of its property by any Governmental Authority
(other than any tax, fee or charge, the amount or validity of which is currently being contested in
good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP
have been provided on the books of the Borrower or its Subsidiaries, as the case may be); no tax
Lien has been filed, and, to the knowledge of the Borrower, no claim out of which a tax Lien could
reasonably be expected to arise is being asserted, with respect to any such tax, fee or other
charge, except any such Lien being contested as aforesaid as to which sale or other enforcement
action has been stayed as a result of such contest.

                    5.11. Federal Regulations. No part of the proceeds of any Loans, and no other
extensions of credit hereunder, will be used for “buying” or “carrying” any “margin stock” within
the respective meanings of each of the quoted terms under Regulation U as now and from time to time
hereafter in effect or for any purpose that violates the provisions of the Regulations of the
Board. If requested by any Lender or the Administrative Agent, the Borrower will furnish to the
Administrative Agent and each Lender a statement to the foregoing effect in conformity with the
requirements of FR Form G-3 or FR Form U-1, as applicable, referred to in Regulation U.

                    5.12. Labor Matters. Except as, in the aggregate, could not reasonably be expected to
have a Material Adverse Effect: (a) there are no strikes or other labor disputes against any Group
Member pending or, to the knowledge of the Borrower, threatened; (b) hours worked by and payment
made to employees of each Group Member have not been in violation of the Fair Labor Standards Act
or any other applicable Requirement of Law dealing with such matters; and (c) all payments due from
any Group Member on account of employee health and

 

 

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welfare insurance have been paid or accrued as a
liability on the books of the relevant Group Member.

                    5.13. ERISA. Neither a Reportable Event nor an “accumulated funding deficiency”
(within the meaning of Section 412 of the Code or Section 302 of ERISA) has occurred during the
five-year period prior to the date on which this representation is made or deemed made with respect
to any Plan, and each Plan has complied in all material respects with the applicable provisions of
ERISA and the Code. No termination of a Single Employer Plan has occurred, and no Lien in favor of
the PBGC or a Plan has arisen, during such five-year period. The present value of all accrued
benefits under each Single Employer Plan (based on those assumptions used to fund such Plans) did
not, as of the last annual valuation date prior to the date on which this representation is made or
deemed made, exceed the value of the assets of such Plan allocable to
such accrued benefits by a material amount. Neither the Borrower nor any Commonly Controlled
Entity has had a complete or partial withdrawal from any Multiemployer Plan that has resulted or
could reasonably be expected to result in a material liability under ERISA, and neither the
Borrower nor any Commonly Controlled Entity would become subject to any material liability under
ERISA if the Borrower or any such Commonly Controlled Entity were to withdraw completely from all
Multiemployer Plans as of the valuation date most closely preceding the date on which this
representation is made or deemed made. No such Multiemployer Plan is in Reorganization or
Insolvent.

                    5.14. Investment Company Act; Other Regulations. No Loan Party is an “investment
company”, or a company “controlled” by an “investment company”, within the meaning of the
Investment Company Act of 1940, as amended. No Loan Party is subject to regulation under any
Requirement of Law (other than Regulation X of the Board) that limits its ability to incur
Indebtedness.

                    5.15. Subsidiaries. Except as set forth on Schedule 5.15 or otherwise disclosed to
the Administrative Agent by the Borrower in writing from time to time after the Closing Date, (a)
Schedule 5.15 sets forth the name and jurisdiction of organization of each Subsidiary and, as to
each such Subsidiary, the percentage of each class of Capital Stock owned by any Loan Party and (b)
there are no outstanding subscriptions, options, warrants, calls, rights or other agreements or
commitments (other than stock options granted to employees or directors and directors’ qualifying
shares) of any nature relating to any Capital Stock of the Borrower or any Subsidiary, except as
created by the Loan Documents.

                    5.16. Use of Proceeds. The proceeds of the Initial Term Loans made on the Closing
Date shall be used to finance a portion of the Acquisition and to pay related fees and expenses.
The proceeds of the Delayed-Draw Term Loans and any Incremental Term Loans shall be used to finance
Permitted Acquisitions and to pay related fees and expenses; provided, that, the proceeds
of any Delayed-Draw Term Loan made after the first date on which the Available Delayed-Draw
Commitment is $35,000,000 or less shall be used for any general corporate purpose (including
Permitted Acquisitions). The proceeds of the Revolving Loans shall be used together with the
proceeds of the Swingline Loans and the Letters of Credit for any general corporate purposes;
provided, that such proceeds shall not be used to finance Permitted Acquisitions prior to
the termination of the Draw-Down Period unless the Delayed-Draw Term Loans shall have been fully
drawn.

 

 

51

                    5.17. Environmental Matters. Except as, in the aggregate, could not reasonably be
expected to have a Material Adverse Effect:

          (a) the facilities and properties owned, leased or operated by any Group Member (the
“Properties”) do not contain, and have not previously contained, any Materials of
Environmental Concern in amounts or concentrations or under
circumstances that constitute or constituted a violation of, or could give rise to
liability under, any Environmental Law;

          (b) no Group Member has received or is aware of any notice of violation, alleged
violation, non-compliance, liability or potential liability regarding environmental matters
or compliance with Environmental Laws with regard to any of the Properties or the business
operated by any Group Member (the “Business”), nor does the Borrower have knowledge
or reason to believe that any such notice will be received or is being threatened;

          (c) Materials of Environmental Concern have not been transported or disposed of from
the Properties in violation of, or in a manner or to a location that could give rise to
liability under, any Environmental Law, nor have any Materials of Environmental Concern been
generated, treated, stored or disposed of at, on or under any of the Properties in violation
of, or in a manner that could give rise to liability under, any applicable Environmental
Law;

          (d) no judicial proceeding or governmental or administrative action is pending or, to
the knowledge of the Borrower, threatened, under any Environmental Law to which any Group
Member is or will be named as a party with respect to the Properties or the Business, nor
are there any consent decrees or other decrees, consent orders, administrative orders or
other orders, or other administrative or judicial requirements outstanding under any
Environmental Law with respect to the Properties or the Business;

          (e) there has been no release or threat of release of Materials of Environmental
Concern at or from the Properties, or arising from or related to the operations of any Group
Member in connection with the Properties or otherwise in connection with the Business, in
violation of or in amounts or in a manner that could give rise to liability under
Environmental Laws;

          (f) the Properties and all operations at the Properties are in compliance, and have in
the last five years been in compliance, with all applicable Environmental Laws, and there is
no contamination at, under or about the Properties or violation of any Environmental Law
with respect to the Properties or the Business; and

          (g) no Group Member has assumed any liability of any other Person under Environmental
Laws.

                    5.18. Accuracy of Information, etc. No statement or information contained in this
Agreement, any other Loan Document, the Confidential Information Memorandum or any other document,
certificate or statement furnished by or on behalf of any Loan Party to the Administrative Agent or
the Lenders, or any of them, for use in connection with the transactions

 

 

52

contemplated by this
Agreement or the other Loan Documents, contained as of the date such statement, information,
document or certificate was so furnished (or, in the case of the Confidential Information
Memorandum, as of the date of this Agreement), any untrue statement of a material fact or omitted
to state a material fact necessary to make the statements contained herein or therein not
misleading. The projections and pro forma financial information contained in the materials
referenced above are based upon good faith estimates and assumptions believed by management of the
Borrower to be reasonable at the time made, it being recognized by the Lenders that such financial
information as it relates to future events is not to be viewed as fact and that actual results
during the period or periods covered by such financial information may differ from the projected
results set forth therein by a material amount. As of the date hereof, the representations and
warranties of the Borrower and, to the best knowledge of the Borrower, of the Seller, contained in
the Acquisition Documentation are true and correct in all material respects. There is no fact
known to any Loan Party that could reasonably be expected to have a Material Adverse Effect that
has not been expressly disclosed herein, in the other Loan Documents, in the Confidential
Information Memorandum or in any other documents, certificates and statements furnished to the
Administrative Agent and the Lenders for use in connection with the transactions contemplated
hereby and by the other Loan Documents.

                    5.19. Security Documents. (a) The Guarantee and Collateral Agreement is effective to
create in favor of the Administrative Agent, for the benefit of the Lenders, a legal, valid and
enforceable security interest in the Collateral described therein and proceeds thereof. In the
case of the Pledged Stock (as defined in the Guarantee and Collateral Agreement), when stock
certificates representing such Pledged Stock are delivered to the Administrative Agent, and in the
case of the other Collateral described in the Guarantee and Collateral Agreement, when financing
statements and other filings specified on Schedule 5.19(a) in appropriate form are filed in the
offices specified on Schedule 5.19(a), and the other actions specified in the Guarantee and
Collateral Agreement are taken, the Guarantee and Collateral Agreement shall constitute a fully
perfected Lien on, and security interest in, all right, title and interest of the Loan Parties in
such Collateral and the proceeds thereof as contemplated by the Guarantee and Collateral Agreement,
as security for the Obligations (as defined in the Guarantee and Collateral Agreement), in each
case prior and superior in right to any other Person (except, in the case of Collateral other than
Pledged Stock, Liens permitted by Section 8.3).

          (b) Each of the Mortgages is effective to create in favor of the Administrative Agent, for
the benefit of the Lenders, a legal, valid and enforceable Lien on the Mortgaged Properties
described therein and proceeds thereof, and when the Mortgages are filed in the offices
specified on Schedule 5.19(b)(i), each such Mortgage shall constitute a fully perfected Lien
on, and security interest in, all right, title and interest of the Loan Parties in the
Mortgaged Properties and the proceeds thereof, as security for the Secured Indebtedness (as
defined in the relevant Mortgage), in each case prior and superior in right to any other Person
(except Liens permitted by Section 8.3). Schedule 5.19(b)(ii) lists, as of the Closing Date,
each parcel of owned real property and each leasehold interest in real property located in the
United States and held by the Borrower or any of its Subsidiaries that has a value, in the
reasonable opinion of the Borrower, in excess of $1,000,000 (in the case of any owned real
property) or aggregate payments in excess of $400,000 per annum (in the case of any
leased real property).

 

 

53

                    5.20. Solvency. Each Loan Party is, and after giving effect to the Acquisition and the incurrence of all
Indebtedness and obligations being incurred in connection herewith and therewith will be and will
continue to be, Solvent.

                    5.21. Senior Indebtedness. The Obligations constitute “Senior Debt” and “Designated
Senior Debt” of the Borrower under and as defined in the Senior Subordinated Note Indenture. The
obligations of each Subsidiary Guarantor under the Guarantee and Collateral Agreement constitute
“Senior Debt” of such Subsidiary Guarantor under and as defined in the Senior Subordinated Note
Indenture.

                    5.22. Regulation H. No Mortgage encumbers improved real property that is located in
an area that has been identified by the Secretary of Housing and Urban Development as an area
having special flood hazards and in which flood insurance has been made available under the
National Flood Insurance Act of 1968, unless flood insurance of the type described in Section
7.14(c) has been provided with respect to such property.

                    5.23. Certain Documents. The Borrower has delivered to the Administrative Agent a
complete and correct copy of the Acquisition Documentation, the Senior Subordinated Note Indenture,
the Coke Agreement, the Employment Agreement and the Showtime Agreement, including any amendments,
supplements or modifications with respect to any of the foregoing.

SECTION 6. CONDITIONS PRECEDENT

                    6.1. Conditions to Initial Extension of Credit. The agreement of each Lender to make
the initial extension of credit requested to be made by it is subject to the satisfaction, prior to
or concurrently with the making of such extension of credit on the Closing Date (but in any event
no earlier than May 19, 2005 and no later than June 15, 2005), of the following conditions
precedent:

          (a) Credit Agreement; Guarantee and Collateral Agreement. The Administrative
Agent shall have received (i) this Agreement, or, in the case of the Lenders, an Addendum,
executed and delivered by each Agent, the Borrower and each Person that is a Lender as of the
Closing Date, (ii) the Guarantee and Collateral Agreement, executed and delivered by the
Borrower and each Subsidiary Guarantor; (iii) an Acknowledgment and Consent in the form
attached to the Guarantee and Collateral Agreement, executed and delivered by each Issuer (as
defined therein), if any, that is not a Loan Party; and (iv) the Deposit Account Control
Agreement, executed and delivered by the Borrower, the Agent and the banking institution where
the Borrower’s principal concentration account is maintained.

          (b) Acquisition, etc. The following transactions shall have been or shall
concurrently be consummated, in each case on terms and conditions reasonably satisfactory to
each Agent and each Lender:

            (i) The Acquisition shall have been consummated for an aggregate purchase price not
exceeding $66,000,000 (subject to final post-closing adjustments in accordance with the
Acquisition Documentation) in accordance with the Acquisition Agreement and

 

 

54

applicable
requirements of law, and the Acquisition Documentation shall not have been amended, waived
or otherwise modified in any material respect adverse to the Borrower or the Lenders without
the prior written consent of the Administrative Agent and the Required Lenders;

            (ii) The Administrative Agent shall have received satisfactory evidence that the fees
and expenses to be incurred in connection with the Acquisition and the financing thereof
shall not exceed $10,000,000;

            (iii) All amounts outstanding under the Borrower’s existing Senior Secured First
Priority Credit Facility, dated as of February 4, 2004, and Senior Secured Second Priority
Credit Facility, dated as of February 4, 2004, shall have been repaid, all commitments
thereunder shall have been terminated and all liens securing such facilities shall have been
terminated, or agreed to be terminated pursuant to a pay-off letter in each case on terms
and conditions satisfactory to the Administrative Agent; and

            (iv) All of the Target’s outstanding debt (if any) shall have been paid, redeemed or
repurchased in full (subject to any exceptions to be agreed on), or arrangements for such
payment, redemption or repurchase shall have been made on terms and conditions satisfactory
to the Administrative Agent. The capital and ownership structure of the Borrower and its
subsidiaries shall be consistent with that described in the Confidential Information
Memorandum after giving effect to the Transaction. The consummation of the Transaction
shall not trigger any change of control put rights under any such indebtedness to remain
outstanding after the Closing Date.

          (c) Pro Forma Balance Sheet; Financial Statements. The Lenders shall have
received the financial statements described in Section 5.1, and such financial statements shall
not, in the reasonable judgment of the Lenders, reflect any material adverse change in the
consolidated financial condition of the Borrower, as reflected in the financial statements or
projections contained in the Confidential Information Memorandum.

          (d) Consolidated Leverage Ratio. The Administrative Agent shall have received
satisfactory evidence that the Consolidated Leverage Ratio of the Borrower (based on the pro
forma balance sheet described in Section 5.1(a), as of March 31, 2005) does not exceed 4.00 to
1.00.

          (e) Approvals. All governmental and third party approvals (including landlords’
and other consents) necessary in connection with the Acquisition, the continuing operations of
the Group Members and the transactions contemplated hereby shall have been obtained and be in
full force and effect (excluding consents of landlords where, despite the
commercially reasonable efforts of the Borrower, such consents and other documentation
required for collateral security to be granted in favor of the Administrative Agent in respect
of the relevant leased property shall not be obtained as of the Closing Date), and all
applicable waiting periods shall have expired without any action being taken or threatened by
any competent authority that would restrain, prevent or otherwise impose adverse conditions on
the Acquisition or the financing contemplated hereby.

 

 

55

          (f) Lien Searches. The Administrative Agent shall have received the results of a
recent lien search in each of the jurisdictions where assets of the Loan Parties are located,
and such search shall reveal no liens on any of the assets of the Loan Parties except for liens
permitted by Section 8.3 or discharged on or prior to the Closing Date pursuant to
documentation satisfactory to the Administrative Agent.

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

          (h) Closing Certificate. The Administrative Agent shall have received (i) a
certificate of each Loan Party, dated the Closing Date, substantially in the form of Exhibit G,
with appropriate insertions and attachments including the certificate or articles of
organization of each Loan Party certified by the relevant authority of the jurisdiction of
organization of such Loan Party, and (ii) a long form good standing certificate for each Loan
Party from its jurisdiction of organization.

          (i) Legal Opinions. The Administrative Agent shall have received the following
executed legal opinions:

            (i) the legal opinion of King & Spalding LLP, counsel to the Borrower and its
Subsidiaries, substantially in the form of Exhibit H-1;

            (ii) the legal opinion of Page, Scrantom, Sprouse, Tucker & Ford, P.C., counsel to the
Borrower and its Subsidiaries, substantially in the form of Exhibit H-2;

            (iii) to the extent consented to by the relevant counsel, each legal opinion, if any,
delivered in connection with the Acquisition Agreement, accompanied by a reliance letter in
favor of the Lenders; and

            (iv) the legal opinion of local counsel in each jurisdiction in which a Group Member is
organized and of such other special and local counsel as may be reasonably required by the
Administrative Agent.

Each such legal opinion shall cover such other matters incident to the transactions contemplated by
this Agreement as the Administrative Agent may reasonably require.

          (j) Pledged Stock; Stock Powers; Pledged Notes. The Administrative Agent shall
have received (i) the certificates representing the shares of Capital Stock pledged pursuant to
the Guarantee and Collateral Agreement, 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 Guarantee and
Collateral Agreement endorsed (without recourse) in blank (or accompanied by an executed
transfer form in blank) by the pledgor thereof.

 

 

56

          (k) Filings, Registrations and Recordings. Each document (including any Uniform
Commercial Code financing statement) required by the Security Documents 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 8.3), shall be in proper form for filing, registration or
recordation.

          (l) Solvency Certificate. The Administrative Agent shall have received a solvency
certificate from the chief financial officer of the Borrower.

          (m) Insurance. The Administrative Agent shall have received insurance
certificates satisfying the requirements of Section 5.2(b) of the Guarantee and Collateral
Agreement.

                    6.2. Conditions to Each Extension of Credit. The agreement of each Lender to make any
extension of credit requested to be made by it on any date (including its initial extension of
credit) is subject to the satisfaction of the following conditions precedent:

      (a) Representations and Warranties. Each of the representations and warranties
made by any Loan Party in or pursuant to the Loan Documents shall be true and correct on and
as of such date as if made on and as of such date, except to the extent such representations
and warranties specifically relate to an earlier date, in which case such representations
and warranties shall have been true and correct on and as of such earlier date, and except
as to changes otherwise expressly permitted by the terms of the Loan Documents.

      (b) Cash Balances. The cash balance on hand of the Borrower and its
Subsidiaries as of such date shall not exceed $25,000,000 (on the date of the initial
extension of credit) or $15,000,000 (on the date of any subsequent extension of credit), in
each case after giving effect to such extension of credit, the application of proceeds of
such borrowing and the use of cash on hand as consideration for any transaction contemplated
by such application of proceeds, which proceeds and cash on hand must be applied within a
reasonable period of time thereafter; provided, that the foregoing condition shall
not apply to any Delayed-Draw Term Loan made following the first date on which the Available
Delayed-Draw Commitment is $35,000,000 or less.

      (c) No Default. No Default or Event of Default shall have occurred and be
continuing on such date or after giving effect to the extensions of credit requested to be
made on such date.

Each borrowing by and issuance of a Letter of Credit on behalf of the Borrower hereunder shall
constitute a representation and warranty by the Borrower as of the date of such extension of credit
that the conditions contained in this Section 6.2 have been satisfied.

 

 

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SECTION 7. AFFIRMATIVE COVENANTS

                    The Borrower hereby agrees that, so long as the Commitments remain in effect, any Letter of
Credit remains outstanding or any Loan or other amount is owing to any Lender or Agent hereunder,
the Borrower shall and shall cause each of its Subsidiaries to:

                    7.1. Financial Statements. Furnish to the Administrative Agent and each Lender:

          (a) as soon as available, but in any event within 65 days after the end of each fiscal
year of the Borrower, a copy of the audited consolidated balance sheet of the Borrower and
its consolidated Subsidiaries as at the end of such year and the related audited
consolidated statements of income and of cash flows for such year, setting forth in each
case in comparative form the figures for the previous year, reported on without a “going
concern” or like qualification or exception, or qualification arising out of the scope of
the audit, by PricewaterhouseCoopers LLP or other independent certified public accountants
of nationally recognized standing; and

          (b) as soon as available, but in any event not later than 40 days after the end of each
of the first three quarterly periods of each fiscal year of the Borrower (45 days after the
end of the fiscal quarters ending June 30, 2005 and September 30, 2005), the unaudited
consolidated balance sheet of the Borrower and its consolidated Subsidiaries as at the end
of such quarter and the related unaudited consolidated statements of income and of cash
flows for such quarter and the portion of the fiscal year through the end of such quarter,
setting forth in each case in comparative form the figures for the previous year, certified
by a Responsible Officer as being fairly stated in all material respects (subject to normal
year-end audit adjustments).

All such financial statements shall be complete and correct in all material respects and shall be
prepared in reasonable detail and in accordance with GAAP applied consistently throughout the
periods reflected therein and with prior periods (except as approved by such accountants or
officer, as the case may be, and disclosed therein).

Documents required to be delivered pursuant to this Section 7.1 may be delivered electronically and
if so delivered, shall be deemed to have been delivered to each Lender on the date on which such
documents are posted on the Borrower’s behalf on IntraLinks or another relevant website, if any, to
which each Lender and the Administrative Agent have access (whether a commercial, third-party
website or whether sponsored by the Administrative Agent); provided that the
Borrower shall deliver paper copies of such documents to the Administrative Agent for further
distribution to each Lender upon written request of Administrative Agent or such Lender.

                    7.2. Certificates; Other Information. Furnish to the Administrative Agent and each
Lender (or, in the case of clause (g), to the relevant Lender):

          (a) concurrently with the delivery of the financial statements referred to in Section
7.1(a), a written statement of the independent certified public accountants reporting on
such financial statements stating that in making the examination necessary

 

 

58

therefor no
knowledge was obtained of the existence of any Default or Event of Default, except as
specified in such statement (it being understood that such examination will have extended
only to financial accounting matters and that no special or separate inquiry or review will
have been made with respect to the existence of any Defaults or Events of Default), unless
applicable professional standards or practices preclude such accountants from furnishing
such written statement;

          (b) concurrently with the delivery of any financial statements pursuant to Section 7.1,
(i) a Compliance Certificate containing all information and calculations necessary for
determining compliance by each Group Member with the provisions of this Agreement referred
to therein as of the last day of the fiscal quarter or fiscal year of the Borrower, as the
case may be, and, if applicable, for determining the Applicable Margins and Commitment Fee
Rate, and stating that, insofar as is known to the Responsible Officer signing such
Compliance Certificate, no Default or Event of Default has occurred and is continuing other
than as described in reasonable detail in such Compliance Certificate, and (ii) to the
extent not previously disclosed to the Administrative Agent, a listing of any material
Intellectual Property acquired by any Loan Party since the date of the most recent list
delivered pursuant to this clause (ii) (or, in the case of the first such list so delivered,
since the Closing Date);

          (c) as soon as available, and in any event no later than 45 days after the end of each
fiscal year of the Borrower, a detailed consolidated budget for the following fiscal year
(including a projected consolidated balance sheet of the Borrower and its Subsidiaries as of
the end of the following fiscal year, the related consolidated statements of projected cash
flow, projected changes in financial position and projected income and a description of the
underlying assumptions applicable thereto), and, as soon as available, significant
revisions, if any, of such budget and projections with respect to such fiscal year
(collectively, the “Projections”), which Projections shall in each case be
accompanied by a certificate of a Responsible Officer stating that such Projections are
based on estimates, information and assumptions set forth therein and otherwise believed by
such Responsible Officer to be reasonable at such time (it being recognized that such
Projections relate to future events and are not to be viewed as fact and that actual results
during the period covered thereby may differ from such Projections by a material amount);

          (d) if the Borrower is not then a reporting company or otherwise complying with
reporting company requirements under the Securities Exchange Act of 1934, as amended, within
35 days after the end of each fiscal quarter of the Borrower (40 days after the end of the
fiscal quarters ending June 30, 2005 and September 30, 2005), or 60 days, in the case of the
last fiscal quarter of any fiscal year, a narrative discussion and analysis of the financial
condition and results of operations of the Borrower and its Subsidiaries for such fiscal
quarter and for the period from the beginning of the then current fiscal year to the end of
such fiscal quarter, as compared to the portion of the Projections covering such periods and
to the comparable periods of the previous year;

          (e) no later than five Business Days prior to the effectiveness thereof, copies of
substantially final drafts of any proposed amendment, supplement, waiver or other

 

 

59

modification with respect to the Senior Subordinated Note Indenture or the Acquisition
Documentation;

          (f) within five Business Days after the same are sent, copies of all financial
statements and reports that the Borrower sends to the holders of any class of its debt
securities or public equity securities and, within three Business Days after the same are
filed, notice of the filing of all periodic reports that the Borrower may make to, or file
with, the SEC; and

          (g) promptly, such additional financial and other information as any Lender, through
the Administrative Agent, may from time to time reasonably request.

Documents required to be delivered pursuant to this Section 7.2 may be delivered electronically and
if so delivered, shall be deemed to have been delivered to each Lender on the date on which such
documents are posted on the Borrower’s behalf on IntraLinks or another relevant website, if any, to
which each Lender and the Administrative Agent have access (whether a commercial, third-party
website or whether sponsored by the Administrative Agent); provided that the Borrower shall deliver
paper copies of such documents to the Administrative Agent for further distribution to each Lender
upon written request of Administrative Agent or such Lender.

                    7.3. Payment of Obligations. Pay, discharge or otherwise satisfy at or before
maturity or before they become delinquent, as the case may be, all its material obligations of
whatever nature, except where the amount or validity thereof is currently being contested in good
faith by appropriate proceedings and reserves in conformity with GAAP with respect thereto have
been provided on the books of the relevant Group Member.

                    7.4. Maintenance of Existence; Compliance. (a) (i) Preserve, renew and keep in full
force and effect its organizational existence and (ii) take all reasonable action to maintain all
rights, privileges and franchises necessary or desirable in the normal conduct of its business,
except, in each case, as otherwise permitted by Section 8.4 and except, in the case of clause (ii)
above, to the extent that failure to do so could not reasonably be expected to have a Material
Adverse Effect; and

          (b) comply with all Contractual Obligations and Requirements of Law except to the extent
that failure to comply therewith could not, in the aggregate, reasonably be expected to have a
Material Adverse Effect.

                    7.5. Maintenance of Property; Insurance. (a) Keep all material property useful and
necessary in its business in good working order and condition, ordinary wear and tear excepted.

          (b) Maintain with financially sound and reputable insurance companies insurance on all its
property in at least such amounts and against at least such risks (but including in any event
public liability, product liability and business interruption) as are customarily insured
against in the same general area by companies engaged in the same or a similar business, in
each case giving effect to reasonable self-insurance levels and deductibles.

 

 

60

                    7.6. Inspection of Property; Books and Records; Discussions .(a) Keep proper
books of records and account in which full, true and correct entries in conformity with GAAP and
all Requirements of Law shall be made of all dealings and transactions in relation to its business
and activities.

          (b) Permit representatives of any Lender to visit and inspect any of its properties and
examine and make abstracts from any of its books and records at any reasonable time during
normal business hours upon reasonable prior notice and as often as may reasonably be desired
and to discuss the business, operations, properties and financial and other condition of the
Group Members with officers and employees of the Group Members and with their independent
certified public accountants.

                    7.7. Notices Promptly give notice to the Administrative Agent and each Lender of:

          (a) the occurrence of any Default or Event of Default;

          (b) any (i) default or event of default under any Contractual Obligation of any Group
Member or (ii) litigation, investigation or proceeding that may exist at any time between
any Group Member and any Governmental Authority, that in either case, if not cured or if
adversely determined, as the case may be, could reasonably be expected to have a Material
Adverse Effect;

          (c) any litigation or proceeding affecting any Group Member (i) in which the amount
involved is $1,000,000 or more and not covered by insurance, (ii) in which material
injunctive or similar relief is sought or (iii) which relates to any Loan Document;

          (d) the following events, as soon as possible and in any event within 30 days after the
Borrower knows or has reason to know thereof: (i) the occurrence of any Reportable Event
with respect to any Plan, a failure to make any required contribution to
a Plan, the creation of any Lien in favor of the PBGC or a Plan or any withdrawal from,
or the termination, Reorganization or Insolvency of, any Multiemployer Plan or (ii) the
institution of proceedings or the taking of any other action by the PBGC or the Borrower or
any Commonly Controlled Entity or any Multiemployer Plan with respect to the withdrawal
from, or the termination, Reorganization or Insolvency of, any Plan; and

          (e) any development or event that has had or could reasonably be expected to have a
Material Adverse Effect.

Each notice pursuant to this Section 7.7 shall be accompanied by a statement of a Responsible
Officer setting forth details of the occurrence referred to therein and stating what action the
Borrower or the relevant Subsidiary proposes to take with respect thereto.

                    7.8. Environmental Laws . (a) Comply with, in all material respects, and
ensure compliance in all material respects by all tenants and subtenants, if any, with, all
applicable Environmental Laws, and obtain and comply with and maintain, and ensure that all tenants
and subtenants obtain and comply in all material respects with and maintain, any and all

 

 

61

licenses,
approvals, notifications, registrations or permits required by applicable Environmental Laws.

          (b) Conduct and complete all investigations, studies, sampling and testing, and all
remedial, removal and other actions required under Environmental Laws and promptly comply with
all lawful orders and directives of all Governmental Authorities regarding Environmental Laws,
except where any such requirements or compliance is being contested in good faith by
appropriate proceedings.

                    7.9. Interest Rate Protection . In the case of the Borrower, within 60 days after the
Closing Date, enter into, and thereafter maintain, Hedge Agreements to the extent necessary to
provide that at least 50% of the aggregate principal amount of all Funded Debt of the Borrower and
its Subsidiaries is subject to either a fixed interest rate or interest rate protection for a
period of not less than three years, which Hedge Agreements shall have terms and conditions
reasonably satisfactory to the Administrative Agent.

                    7.10. Landlord Consents . Use its commercially reasonable efforts to obtain from
landlords of properties leased by such Loan Party consents and other documentation reasonably
satisfactory to the Administrative Agent for the grant of collateral Security interests in a number
of such properties equal to at least 33% of the total number of properties leased by the Borrower
or any of its Subsidiaries.

                    7.11. Additional Collateral, etc. (a) With respect to any property acquired
after the Closing Date by any Loan Party (other than (x) any property described in paragraph (b),
(c) or (d) below, (y) any property subject to a Lien expressly permitted by Section 8.3(g) and (z)
property acquired by any Excluded Foreign Subsidiary) as to which the Administrative Agent, for the
benefit of the Lenders, does not have a perfected Lien, promptly (i) execute and deliver to the
Administrative Agent such amendments to the Guarantee and Collateral Agreement or such other
documents as the Administrative Agent reasonably deems necessary or advisable to grant to the
Administrative Agent, for the benefit of the Lenders, a security interest
in such property and (ii) take all actions necessary or reasonably advisable to grant to the
Administrative Agent, for the benefit of the Lenders, a perfected first priority security interest
in such property, including the filing of Uniform Commercial Code financing statements in such
jurisdictions as may be required by the Guarantee and Collateral Agreement or by law or as may be
requested by the Administrative Agent.

          (b) With respect to (i) any fee interest in any real property having an aggregate fair
market value (together with improvements thereof) of at least $1,000,000 acquired in one or a
series of transactions after the Closing Date by any Borrower or any other Loan Party
(including any such real property owned by any new Subsidiary Guarantor acquired after the
Closing Date and excluding any such real property owned by an Excluded Foreign Subsidiary or
subject to a Lien expressly permitted by Section 8.3(g)) or (ii) subject to the related Loan
Party obtaining the required landlord consent (provided that each Loan Party shall use
commercially reasonable efforts to obtain such consent), any leasehold interest in any real
property requiring aggregate payments in excess of $400,000 per annum acquired or leased
(including any leasehold property interest owned by any new Subsidiary Guarantor acquired after
the Closing Date or any leasehold property interest with respect to

 

 

62

which a required landlord
consent is granted after the Closing Date) in one or a series of transactions after the Closing
Date by any Borrower or any other Loan Party, promptly (1) execute and deliver a first priority
Mortgage in favor of the Administrative Agent, for the benefit of the Secured Parties, covering
such real property, (2) deliver to the Administrative Agent an appraisal of such real property
from a firm reasonably satisfactory to the Administrative Agent, (3) if requested by the
Administrative Agent, provide the Lenders with (x) title and extended coverage insurance
covering such real property in an amount at least equal to the purchase price of such real
property (or such other amount as shall be reasonably specified by the Administrative Agent) as
well as a current ALTA survey thereof, together with a surveyor’s certificate and (y) any
consents, waivers or estoppels reasonably deemed necessary or advisable by the Administrative
Agent in connection with such Mortgage and that the Borrower can obtain using commercially
reasonable efforts, each of the foregoing in form and substance reasonably satisfactory to the
Administrative Agent and (4) if requested by the Administrative Agent, deliver to the
Administrative Agent legal opinions relating to the matters described above, which opinions
shall be in form and substance, and from counsel, reasonably satisfactory to the Administrative
Agent.

          (c) With respect to any new Subsidiary (other than (x) an Excluded Foreign Subsidiary, (y)
a new Subsidiary that, if it had been consolidated with the Borrower as of the first date of
the most-recent period of four consecutive fiscal quarters for which financial statements have
been delivered pursuant to Section 7.1, would not constitute a Material Group Member or (z) a
non-Wholly Owned Subsidiary which is prohibited from becoming a Subsidiary Guarantor by the
terms of any Requirement of Law (including any duty owed thereunder) binding on or applicable
to such non-Wholly Owned Subsidiary or the holders of its Capital Stock) created or acquired
after the Closing Date by any Group Member (which, for the purposes of this paragraph (c),
shall include any existing Subsidiary that ceases to be an Excluded Foreign Subsidiary), or any
other Subsidiary designated by the Borrower to become a Subsidiary Guarantor, promptly (i)
execute and deliver to the Administrative Agent such amendments to the Guarantee and Collateral
Agreement as the Administrative Agent reasonably deems necessary or advisable to grant to the
Administrative Agent, for the benefit of the Lenders, a perfected first priority security interest in the Capital Stock
of such new Subsidiary that is owned by any Group Member, (ii) deliver to the Administrative
Agent the certificates representing such Capital Stock, together with undated stock powers, in
blank, executed and delivered by a duly authorized officer of the relevant Group Member, (iii)
cause such new Subsidiary (A) to become a party to the Guarantee and Collateral Agreement, (B)
to take such actions necessary or advisable to grant to the Administrative Agent for the
benefit of the Lenders a perfected first priority security interest in the Collateral described
in the Guarantee and Collateral Agreement with respect to such new Subsidiary, including the
filing of Uniform Commercial Code financing statements in such jurisdictions as may be required
by the Guarantee and Collateral Agreement or by law or as may be requested by the
Administrative Agent and (C) to deliver to the Administrative Agent a certificate of such
Subsidiary, substantially in the form of Exhibit C, with appropriate insertions and
attachments, and (iv) if requested by the Administrative Agent, deliver to the Administrative
Agent legal opinions relating to the matters described above, which opinions shall be in form
and substance, and from counsel, reasonably satisfactory to the Administrative Agent.
Notwithstanding the foregoing, if at any time (x) the aggregate revenues represented by all
non-Material Group Members which are Non-Guarantor

 

 

63

Subsidiaries shall exceed 3% of the total consolidated gross revenues of the Borrower for the period of the most recent four full fiscal
quarters of the Borrower for which financial statements are available or (y) the aggregate book
value of the assets of all non-Material Group Members which are Non-Guarantor Subsidiaries
shall exceed $17,500,000, the Borrower shall cause a number of non-Material Group Members which
are Non-Guarantor Subsidiaries to comply with the terms of this paragraph sufficient to cause
the aggregate revenues and assets of such non-Material Group Members which are Non-Guarantor
Subsidiaries not to exceed the maximum amounts set forth in clauses (x) and (y), respectively.

          (d) With respect to any new Excluded Foreign Subsidiary created or acquired after the
Closing Date by any Group Member (other than by any Group Member that is an Excluded Foreign
Subsidiary), promptly (i) execute and deliver to the Administrative Agent such amendments to
the Guarantee and Collateral Agreement as the Administrative Agent reasonably deems necessary
or advisable to grant to the Administrative Agent, for the benefit of the Lenders, a perfected
first priority security interest in the Capital Stock of such new Subsidiary that is owned by
any such Group Member (provided that in no event shall more than 65% of the total outstanding
Capital Stock of any such new Subsidiary be required to be so pledged), (ii) deliver to the
Administrative Agent the certificates representing such Capital Stock, together with undated
stock powers, in blank, executed and delivered by a duly authorized officer of the relevant
Group Member, as the case may be, and take such other action as may be necessary or, as
reasonably determined by the Administrative Agent, desirable to perfect the Administrative
Agent’s security interest therein, and (iii) if requested by the Administrative Agent, deliver
to the Administrative Agent legal opinions relating to the matters described above, which
opinions shall be in form and substance, and from counsel, reasonably satisfactory to the
Administrative Agent.

                    7.12. Further Assurances . From time to time execute and deliver, or cause to be
executed and delivered, such additional instruments, certificates or documents, and take all such
actions, as the Administrative Agent may reasonably request for the purposes of implementing or
effectuating the provisions of this Agreement and the other Loan Documents, or of perfecting or
renewing the rights of the Administrative Agent and the Lenders with respect to the Collateral (or
with respect to any additions thereto or replacements or proceeds thereof or with respect to any
other property or assets hereafter acquired by the borrower or any Subsidiary which may be deemed
to be part of the Collateral) pursuant hereto or thereto. Upon the exercise by the Administrative
Agent or any Lender of any power, right, privilege or remedy pursuant to this Agreement or the
other Loan Documents which requires any consent, approval, recording qualification or authorization
of any Governmental Authority, the Borrower will execute and deliver, or will cause the execution
and delivery of, all applications, certifications, instruments and other documents and papers that
the Administrative Agent or such Lenders may be required to obtain from the Borrower or any of its
Subsidiaries for such governmental consent, approval, recording, qualification or authorization.

                    7.13. Cash Management . The Borrower shall cause all funds contained in each deposit
account maintained by it or any of its Subsidiaries for revenues to be swept not less frequently
than once per week into the deposit account subject to the Deposit Account Control Agreement.

 

 

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                    7.14. Mortgages, etc . Within 10 Business Days of the Closing Date:

          (a) The Administrative Agent shall have received a Mortgage with respect to each Mortgaged
Property, executed and delivered by a duly authorized officer of each party thereto.

          (b) The Administrative Agent shall have received in respect of each Mortgaged Property a
mortgagee’s title insurance policy (or policies) or marked up unconditional binder for such
insurance. Each such policy shall (A) be in an amount satisfactory to the Administrative
Agent; (B) be issued at ordinary rates; (C) insure that the Mortgage insured thereby creates a
valid first Lien on such Mortgaged Property free and clear of all defects and encumbrances,
except as disclosed therein; (D) name the Administrative Agent for the benefit of the Lenders
as the insured thereunder; (E) be in the form of ALTA Loan Policy — 1970 (Amended 10/17/70 and
10/17/84) (or equivalent policies); (F) contain such endorsements and affirmative coverage as
the Administrative Agent may reasonably request (including without limitation survey-related
endorsements, to the extent available, either based on an existing survey or a certificate
given by the relevant Loan Party) and (G) be issued by title companies (collectively, the
“Title Insurance Company”) satisfactory to the Administrative Agent (including any such title
companies acting as co-insurers or reinsurers, at the option of the Administrative Agent). The
Administrative Agent shall have received evidence satisfactory to it that all premiums in
respect of each such policy, all charges for mortgage recording tax, and all related expenses,
if any, have been paid or arrangements for payment satisfactory to the Administrative Agent
have been made.

          (c) If requested by the Administrative Agent, the Administrative Agent shall have received
(A) a policy of flood insurance that (1) covers any parcel of improved real property that is
encumbered by any Mortgage and is located in a “special flood hazard area”, (2) is written in
an amount not less than the outstanding principal amount of the indebtedness secured by such
Mortgage that is reasonably allocable to such real property or the maximum limit of coverage
made available with respect to the particular type of property under the National Flood
Insurance Act of 1968, whichever is less, and (3) has a term ending not later than the maturity
of the Indebtedness secured by such Mortgage and (B) confirmation that the Borrower has
received the notice required pursuant to Section 208(e)(3) of Regulation H of the Board.

          (d) The Administrative Agent shall have received a copy of all recorded documents referred
to, or listed as exceptions to title in, the title policy or policies referred to in clause
(iii) above and a copy of all other material documents affecting the Mortgaged Properties, in
each case as may have been requested by the Administrative Agent.

          (e) The Administrative Agent shall have received the executed legal opinion of local
counsel in each jurisdiction in which a Mortgaged Property is located.

 

 

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SECTION 8.   NEGATIVE COVENANTS

                    The Borrower hereby agrees that, so long as the Commitments remain in effect, any Letter of
Credit remains outstanding or any Loan or other amount is owing to any Lender or Agent hereunder,
the Borrower shall not, and shall not permit any of its Subsidiaries to, directly or indirectly:

                    8.1. Financial Condition Covenants . (a) 
Consolidated Leverage Ratio.
Permit the Consolidated Leverage Ratio (i) as of the Closing Date to exceed 5.00 to 1.00 or (ii) as
at the last day of any period of four consecutive fiscal quarters of the Borrower ending with any
fiscal quarter set forth below to exceed the ratio set forth below opposite such fiscal quarter:

	 	 	 
	 	 	Consolidated
	 Fiscal Quarters Ending	 	Leverage Ratio
	June 30, 2005 through June 30, 2006

	 	5.00 to 1.00
	 
	September 30, 2006 through
December 31, 2006

	 	4.75 to 1.00
	 
	March 31, 2007 and thereafter

	 	4.50 to 1.00

; provided, that, notwithstanding the foregoing, if the Borrower consummates any Permitted
Acquisition such that the aggregate consideration for all Permitted Acquisitions consummated during
the period from the Closing Date through December 31, 2005 exceeds $125,000,000, the Borrower shall
not permit the Consolidated Leverage Ratio as of the last day of each of the eight
succeeding periods of four consecutive fiscal quarters of the Borrower (beginning with and
including the period of four consecutive fiscal quarters of the Borrower ending on the last day of
the fiscal quarter during which such Permitted Acquisition is consummated (such fiscal quarter the
“Threshold Quarter”) to exceed the ratio set forth below opposite such fiscal quarter:

	 	 	 
	Period of Four Consecutive Fiscal	 	Consolidated
	 Quarters Ending on the last day of the:	 	Leverage Ratio
	Threshold Quarter

	 	5.50 to 1.00
	 
	Next Three Fiscal Quarters

	 	5.50 to 1.00
	 
	Next Two Fiscal Quarters

	 	5.00 to 1.00
	 
	Next Two Fiscal Quarters

	 	4.75 to 1.00
	 
	Thereafter

	 	4.50 to 1.00

          (b) Consolidated Interest Coverage Ratio. Permit the Consolidated Interest
Coverage Ratio for any period of four consecutive fiscal quarters of the Borrower (or, if less,

 

 

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the number of full fiscal quarters subsequent to the Closing Date) to be less than 2.00 to
1.00; provided, that for the purposes of determining the ratio described above for the
fiscal quarters of the Borrower ending June 30, 2005, September 30, 2005 and December 31, 2005,
Consolidated Interest Expense for the relevant period shall be deemed to equal Consolidated
Interest Expense for such fiscal quarter (and, in the case of the latter two such
determinations, each previous fiscal quarter commencing after the Closing Date) multiplied
by 4, 2 and 4/3, respectively; provided, further, that, for the fiscal
quarter of the Borrower ending June 30, 2005, Consolidated Interest Expense shall be adjusted
to give pro forma effect to the Acquisition, as if it had been consummated on the first day of
such fiscal quarter.

                    8.2. Indebtedness . Create, issue, incur, assume, become liable in respect of or
suffer to exist any Indebtedness, except:

          (a) Indebtedness of any Loan Party pursuant to any Loan Document;

          (b) Indebtedness (i) of the Borrower to any Subsidiary, (ii) of any Wholly Owned
Subsidiary Guarantor to the Borrower or any other Subsidiary, (iii) of any Foreign
Subsidiary or Non-Guarantor Subsidiary to any Foreign Subsidiary or Non-Guarantor Subsidiary
and (iv) subject to Section 8.8(h), of any Foreign Subsidiary or Non-Guarantor Subsidiary to
the Borrower or any Wholly Owned Subsidiary Guarantor;

          (c) Guarantee Obligations incurred in the ordinary course of business by the Borrower
or any of its Subsidiaries of obligations of the Borrower, any Wholly Owned
Subsidiary Guarantor and, subject to Section 8.8(h), of any Foreign Subsidiary or any
Non-Guarantor Subsidiary;

          (d) Indebtedness outstanding on the date hereof and listed on Schedule 8.2(d) and any
refinancings, refundings, renewals, extensions and replacements thereof (without increasing,
or shortening the maturity of, the principal amount thereof);

          (e) Indebtedness (excluding Capital Lease Obligations) secured by Liens permitted by
Section 8.3(g) in an aggregate principal amount not to exceed $5,000,000 at any one time
outstanding;

          (f) Capital Lease Obligations secured by Liens permitted by Section 8.3(g);
provided, that, the Borrower shall not enter into any Capital Lease Obligations if (i)
the pro forma Consolidated Leverage Ratio at the time of entry into any such proposed
Capital Lease Obligation (determined by reference to the most recently delivered Compliance
Certificate calculating the Consolidated Leverage Ratio and giving pro forma effect to the
proposed Capital Lease Obligation) exceeds 4.00 to 1.00 and (ii) the aggregate amount of
Capital Lease Obligations (after giving effect to such proposed Capital Lease Obligation)
entered into or assumed after the Closing Date would exceed $25,000,000;

          (g) (i) Indebtedness of the Borrower in respect of the Senior Subordinated Notes in an
aggregate principal amount not to exceed $150,000,000, (ii) Guarantee Obligations of any
Subsidiary Guarantor in respect of such Indebtedness, provided that

 

 

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such Guarantee Obligations are subordinated to the same extent as the obligations of the Borrower in
respect of the Senior Subordinated Notes and (iii) any refinancings, refundings, renewals,
extensions or replacements thereof (without shortening the maturity, increasing the
principal amount or increasing the interest payments in respect thereof);

          (h) Hedge Agreements permitted under Section 8.12 and

          (i) Indebtedness incurred by the Borrower or any of its Subsidiaries arising from
agreements providing for indemnification, adjustment of purchase price or similar
obligations, or from guarantees or letters of credit, surety bonds or performance bonds
securing the performance of the Borrower or any Subsidiary pursuant to such agreements, in
connection with Permitted Acquisitions or permitted dispositions of any business, assets or
Subsidiary of the Borrower or any of its Subsidiaries;

          (j) Indebtedness that may be deemed to exist pursuant to any guaranties, performance,
surety, statutory or appeal bonds or similar obligations, or workers’ compensation or
self-insurance obligations, incurred in the ordinary course of business;

          (k) Indebtedness in respect of netting services, overdraft protection and otherwise in
connection with deposit accounts;

          (l) Guarantees in the ordinary course of business of the obligations of suppliers,
customers, franchisees and licensees of the Borrower and its Subsidiaries;

          (m) Indebtedness (other than Capital Lease Obligations) of any Persons that become
Subsidiaries after the Closing Date, or that is secured by any property or assets acquired
after the Closing Date, in all cases pursuant to Permitted Acquisitions, in an aggregate
principal amount at any time outstanding not to exceed $10,000,000, together with all
extensions, renewals, replacements and refinancings of any such Indebtedness, in whole or in
part, that do not increase the outstanding principal amount thereof or shorten the maturity
thereof, provided that (x) such Indebtedness exists at the time of such Permitted
Acquisition and is not created in contemplation of or in connection with such Permitted
Acquisition, and (y) the Borrower and its Subsidiaries shall be in compliance with the
financial covenants set forth in Section 8.1 on a pro forma basis after giving effect to
such Indebtedness as if such Indebtedness had been incurred on the first day of the most
recent period of four consecutive fiscal quarters in respect of which the Consolidated
Leverage Ratio has been tested in accordance with Section 8.1(a) but utilizing the financial
covenant levels set forth in Section 8.1 (including any adjustment thereto pursuant to the
proviso to Section 8.1(a)) corresponding to the period of four consecutive fiscal quarters
ending at the conclusion of the fiscal quarter in which such acquisition occurs;

          (n) Capital Lease Obligations of any Persons that become Subsidiaries after the Closing
Date, or that are secured by any property or assets acquired after the Closing Date, in all
cases pursuant to Permitted Acquisitions, together with all extensions, renewals,
refinancings and replacements of any such Capital Lease Obligations, in whole

 

 

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or in part, that do not increase the payment obligations in respect thereof, provided that (x) such
Capital Lease Obligations exist at the time of such Permitted Acquisition and are not
created in contemplation of or in connection with such Permitted Acquisition, and (y) the
Borrower and its Subsidiaries shall be in compliance with the financial covenants set forth
in Section 8.1 on a pro forma basis after giving effect to such Capital Lease Obligations as
if such Capital Lease Obligations had been incurred on the first day of the most recent
period of four consecutive fiscal quarters in respect of which the Consolidated Leverage
Ratio has been tested in accordance with Section 8.1(a) but utilizing the financial covenant
levels set forth in Section 8.1 (including any adjustment thereto pursuant to the proviso to
Section 8.1(a)) corresponding to the period of four consecutive fiscal quarters ending at
the conclusion of the fiscal quarter in which such acquisition occurs;

          (o) Indebtedness of the Borrower that is subordinated in right of payment to the prior
payment in full of the Obligations pursuant to terms and conditions that are no less
favorable to the Lenders than the terms and conditions of subordination provided in the
Senior Subordinated Note Indenture or otherwise acceptable to the Administrative Agent,
provided that after giving effect to such Indebtedness and the Borrower’s
use of the proceeds thereof, the Borrower shall be in compliance with the financial
covenants set forth in Section 8.1; and

          (p) additional Indebtedness of the Borrower or any of its Subsidiaries in an aggregate
principal amount (for the Borrower and all Subsidiaries) not to exceed $5,000,000 at any one
time outstanding.

                    8.3. Liens . Create, incur, assume or suffer to exist any Lien upon any of its
property, whether now owned or hereafter acquired, except for:

          (a) Liens for federal and state income taxes and other material taxes not yet due or
that are being contested in good faith by appropriate proceedings, provided that
adequate reserves with respect thereto are maintained on the books of the Borrower or its
Subsidiaries, as the case may be, in conformity with GAAP;

          (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like
Liens arising in the ordinary course of business that are not overdue for a period of more
than 30 days or that are being contested in good faith by appropriate proceedings;

          (c) pledges or deposits in connection with workers’ compensation, unemployment
insurance and other social security legislation;

          (d) deposits to secure the performance of bids, trade contracts (other than for
borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds
and other obligations of a like nature incurred in the ordinary course of business;

          (e) easements, rights-of-way, restrictions and other similar encumbrances that, in the
aggregate, are not substantial in amount and that do not in any case materially

 

 

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detract from the value of the property subject thereto or materially interfere with the ordinary conduct
of the business of the Borrower or any of its Subsidiaries;

          (f) Liens in existence on the date hereof listed on Schedule 8.3(f), securing
Indebtedness permitted by Section 8.2(d), provided that no such Lien is spread to
cover any additional property after the Closing Date and that the amount of Indebtedness
secured thereby is not increased;

          (g) Liens securing Indebtedness of the Borrower or any other Subsidiary incurred
pursuant to (i) Section 8.2(e) or Section 8.2(n) or (ii) Section 8.2(f) or Section 8.2(m) to
finance the acquisition of fixed or capital assets, and any refinancings, refundings,
renewals, extensions and replacements thereof, provided that (i) such Liens shall be
created substantially simultaneously with the acquisition of such fixed or capital assets,
(ii) such Liens do not at any time encumber any property other than the property financed by
such Indebtedness and (iii) the amount of Indebtedness secured thereby is not increased;

          (h) Liens created pursuant to the Security Documents;

          (i) any interest or title of a lessor under any lease entered into by the Borrower or
any other Subsidiary in the ordinary course of its business and covering only the assets so
leased;

          (j) Liens solely on any cash earnest money deposits made by the Borrower or any of its
Subsidiaries in connection with any letter of intent or purchase agreement otherwise
permitted hereby;

          (k) purported Liens evidenced by the filing of precautionary UCC financing statements
relating to operating leases, bailments and consignments of personal property entered into
in the ordinary course of business;

          (l) Liens in favor of customs and revenue authorities arising as a matter of law to
secure payment of customs duties in connection with the importation of goods;

          (m) licenses of patents, trademarks, copyrights, and other intellectual property rights
granted by the Borrower or any of its Subsidiaries in the ordinary course of business and
not interfering in any material respect with the ordinary conduct of the business of the
Borrower or such Subsidiary;

          (n) Liens in effect as of the Closing Date on furniture, trade fixtures, equipment and
other tangible property in favor of landlords and lessors of theatre facilities to secure
obligations owing under the leases for such theatre facilities, provided that such
Liens apply only to tangible property located at such leased facilities;

          (o) Liens in respect of judgments or other legal process that do not constitute an
Event of Default pursuant to Section 9; and

 

 

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          (p) Liens not otherwise permitted by this Section so long as neither (i) the aggregate
outstanding principal amount of the obligations secured thereby nor (ii) the aggregate fair
market value (determined as of the date such Lien is incurred) of the assets subject thereto
exceeds (as to the Borrower and all Subsidiaries) $5,000,000 at any one time.

                    8.4. Fundamental Changes . Enter into any merger, consolidation or amalgamation, or
liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), or Dispose of,
all or substantially all of its property or business, except that:

          (a) any Subsidiary of the Borrower may be merged or consolidated with or into the
Borrower (provided that the Borrower shall be the continuing or surviving
corporation) or with or into any Wholly Owned Subsidiary Guarantor (provided that
the Wholly Owned Subsidiary Guarantor shall be the continuing or surviving corporation) or,
subject to Section 8.8(h), with or into any Foreign Subsidiary or Non-Guarantor Subsidiary;

          (b) any Subsidiary of the Borrower may Dispose of any or all of its assets (upon
voluntary liquidation or otherwise) to the Borrower or any Wholly Owned Subsidiary Guarantor
or, subject to Section 8.8(h), any Foreign Subsidiary or any Non-Guarantor Subsidiary;

          (c) any Subsidiary may merge with another Person to effect a transaction permitted
under Section 8.8; and

          (d) transactions permitted under Section 8.5 shall be permitted.

                    8.5. Disposition of Property . Dispose of any of its property, whether now owned or
hereafter acquired, or, in the case of any Subsidiary, issue or sell any shares of such
Subsidiary’s Capital Stock to any Person, except:

          (a) the Disposition of obsolete, worn out or surplus property in the ordinary course of
business;

          (b) the sale of inventory in the ordinary course of business;

          (c) Dispositions permitted by Section 8.4(a), (b) and (c);

          (d) the sale or issuance of any Subsidiary’s Capital Stock to the Borrower or any
Wholly Owned Subsidiary Guarantor;

          (e) Dispositions of other property having a fair market value not to exceed $10,000,000
in the aggregate for any fiscal year of the Borrower;

          (f) Dispositions permitted by Section 8.11; and

          (g) Dispositions of Cash Equivalents.

 

 

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                    8.6. Restricted Payments . Declare or pay any dividend (other than dividends payable
solely in common stock of the Person making such dividend) on, or make any payment on account of,
or set apart assets for a sinking or other analogous fund for, the purchase, redemption,
defeasance, retirement or other acquisition of, any common stock of any Group Member, whether now
or hereafter outstanding, or make any other distribution (other than distributions made solely in
common stock of the Person making such distribution) in respect thereof, either directly or
indirectly, whether in cash or property or in obligations of the Borrower or any Subsidiary
(collectively, “Restricted Payments”), except:

          (a) Restricted Payments by any Subsidiary to the Borrower or any Wholly Owned Subsidiary
Guarantor; and

          (b) so long as no Event of Default shall have occurred and be continuing or shall be
caused thereby, the Borrower may make Restricted Payments as follows: (i) if the pro forma
Consolidated Leverage Ratio at the time of such Restricted Payment (determined by reference to
the most recently delivered Compliance Certificate calculating the Leverage Ratio and giving
pro forma effect to the respective Restricted Payments) (x) is less than 2.50:1.00, then
Company shall be permitted to make those Restricted Payments that would be permitted under
Section 4.07 of the Senior Subordinated Note Indenture at the time of such Restricted Payments
or (y) is greater than 2.50:1.00, but less than 4.50:1.00, then the aggregate amount of such
Restricted Payments shall not exceed $12,000,000 in the aggregate in any fiscal year;
provided, that such amount may be increased in any fiscal year starting with the fiscal
year ending December 31, 2006 by the amount not utilized in the previous fiscal year if the pro
forma Consolidated Leverage Ratio at the time of such Restricted Payment (determined by
reference to the most recently delivered Compliance Certificate
calculating the Leverage Ratio and giving pro forma effect to the respective Restricted
Payments) is less than 4.00 to 1.00.

                    8.7. Capital Expenditures . Make or commit to make any Capital Expenditure if any
Default or Event of Default has occurred and is continuing or would result therefrom, or would have
occurred as a result of a breach of Section 8.1 if such Capital Expenditure were deemed to have
been made and any Indebtedness incurred to finance such Capital Expenditure was incurred on the
last day of the fiscal quarter most recently ended).

                    8.8. Investments . Make any advance, loan, extension of credit (by way of guaranty or
otherwise) or capital contribution to, or purchase any Capital Stock, bonds, notes, debentures or
other debt securities of, or any assets constituting a business unit of, or make any other
investment in, any Person (all of the foregoing, “Investments”), except:

          (a) extensions of trade credit in the ordinary course of business;

          (b) Investments in Cash Equivalents;

          (c) Guarantee Obligations permitted by Section 8.2;

          (d) loans and advances to employees of any Group Member of the Borrower in the ordinary
course of business (including for travel, entertainment and relocation

 

 

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expenses) in an aggregate amount for all Group Members not to exceed $100,000 at any one time outstanding;

          (e) the Acquisition;

          (f) Investments in assets useful in the business of the Borrower and its Subsidiaries
made by the Borrower or any of its Subsidiaries with the proceeds of any Reinvestment
Deferred Amount or which, to the extent constituting Capital Expenditures, are permitted by
Section 8.7;

          (g) intercompany Investments by any Group Member in the Borrower or any Person that,
prior to such Investment, is a Wholly Owned Subsidiary Guarantor;

          (h) Investments made after the Closing Date in non-Guarantor Subsidiaries and joint
ventures of any Loan Party in an amount not to exceed $10,000,000 at any one time
outstanding;

          (i) Permitted Acquisitions;

          (j) Investments (x) received in satisfaction or partial satisfaction from financially
troubled account debtors, and (y) deposits, prepayments and other credits to suppliers made
in the ordinary course of business consistent with the past practices of the Borrower and
its Subsidiaries;

          (k) Investments received as non-cash consideration for sales, transfers, leases and
other dispositions of assets otherwise permitted hereby;

          (l) Investments in Hedge Agreements permitted hereby; and

          (m) in addition to Investments otherwise expressly permitted by this Section,
Investments by the Borrower or any of its Subsidiaries in an aggregate amount (valued at
cost) not to exceed $2,500,000 during the term of this Agreement.

                    8.9. Optional Payments and Modifications of Certain Debt Instruments . (a) Make or
offer to make any optional or voluntary payment, prepayment, repurchase or redemption of or
otherwise optionally or voluntarily defease or segregate funds with respect to the Senior
Subordinated Notes; (b) amend, modify, waive or otherwise change, or consent or agree to any
amendment, modification, waiver or other change to, any of the terms of the Senior Subordinated
Notes if the effect of such amendment, modification, waiver or other change is to increase the
interest rate on the Senior Subordinated Notes, change (to earlier dates) any dates on which
payments of principal or interest are due thereon, change any event of default or condition to an
event of default with respect thereto (other than to eliminate any such event of default or
increase any grace period related thereto or otherwise make such event of default or condition less
restrictive or burdensome on the Borrower), change the redemption, prepayment or defeasance
provisions thereof, change the subordination provisions of the Senior Subordinated Notes (or any
Guarantee thereof), or to increase materially the obligations of the Company thereunder or to
confer any additional rights on the holders of the Senior Subordinated Notes (or a trustee or other
representative on their behalf) that would be adverse in any material respect to

 

 

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any Loan Party or the Lenders, or require the payment of a consent fee; or (c) designate any Indebtedness (other than
obligations of the Loan Parties pursuant to the Loan Documents) as “Designated Senior Debt” (or any
other defined term having a similar purpose) for the purposes of the Senior Subordinated Note
Indenture.

                    8.10. Transactions with Affiliates . Enter into any transaction, including any
purchase, sale, lease or exchange of property, the rendering of any service or the payment of any
management, advisory or similar fees, with any Affiliate (other than the Borrower or any Wholly
Owned Subsidiary Guarantor) unless such transaction is (a) otherwise permitted under this
Agreement, (b) in the ordinary course of business of the relevant Group Member and (c) upon fair
and reasonable terms no less favorable to the relevant Group Member, than it would obtain in a
comparable arm’s length transaction with a Person that is not an Affiliate; provided that the
foregoing restriction shall not apply to (x) reasonable and customary fees paid to members of the
board of directors of the Borrower and its Subsidiaries and (y) compensation arrangements for
officers and other employees of the Borrower and its Subsidiaries entered into in the ordinary
course of business.

                    8.11. Sales and Leasebacks . Enter into any arrangement with any Person providing for
the leasing by any Group Member of real or personal property that has been or is to be sold or
transferred by such Group Member to such Person or to any other Person to whom funds have been or
are to be advanced by such Person on the security of such property or rental obligations of such
Group Member, except to the extent the aggregate book value of all such properties that are subject
to such transactions does not exceed $10,000,000.

                    8.12. Hedge Agreements . Enter into any Hedge Agreement, except (a) Hedge Agreements
entered into to hedge or mitigate risks to which the Borrower or any Subsidiary has actual exposure
(other than those in respect of Capital Stock or the Senior Subordinated Notes) and (b) Hedge
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 Borrower or any Subsidiary.

                    8.13. Changes in Fiscal Periods . Permit the fiscal year of the Borrower to end on a
day other than December 31 or change the Borrower’s method of determining fiscal quarters.

                    8.14. Negative Pledge Clauses . Enter into or suffer to exist or become effective any
agreement that prohibits, limits or imposes any condition upon the ability of any Group Member to
create, incur, assume or suffer to exist any Lien upon any of its property or revenues, whether now
owned or hereafter acquired, other than (a) this Agreement and the other Loan Documents, (b) any
agreements governing any purchase money Liens or Capital Lease Obligations otherwise permitted
hereby (in which case, any prohibition or limitation shall only be effective against the assets
financed thereby), (c) binding agreements providing for the sale of property within 45 days of the
attachment of such restriction which are otherwise permitted hereby (in which case, any prohibition
or limitation shall only be effective against the property to be sold, directly or indirectly,
thereby), (d) restrictions by reason of customary provisions restricting Liens, assignments,
subletting, or other transfers contained in joint venture agreements, leases, licenses, and similar
agreements entered into in the ordinary course of

 

 

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business (in which case, any prohibition or
limitation shall only be effective against the property and rights subject to such agreements)
consistent with past practice and (e) restrictions imposed by Section 4.12 of the Senior
Subordinated Note Indenture.

                    8.15. Clauses Restricting Subsidiary Distributions . Enter into or suffer to exist or
become effective any consensual encumbrance or restriction on the ability of any Subsidiary of the
Borrower to (a) make Restricted Payments in respect of any Capital Stock of such Subsidiary held
by, or pay any Indebtedness owed to, the Borrower or any other Subsidiary of the Borrower, (b) make
loans or advances to, or other Investments in, the Borrower or any other Subsidiary of the Borrower
or (c) transfer any of its assets to the Borrower or any other Subsidiary of the Borrower, except
for such encumbrances or restrictions existing under or by reason of (i) any restrictions existing
under the Loan Documents; (ii) any restrictions with respect to a Subsidiary imposed pursuant to an
agreement that has been entered into in connection with the Disposition of all or substantially all
of the Capital Stock or assets of such Subsidiary, (iii) any restrictions by reason of customary
provisions in joint venture agreements, leases, licenses and similar agreements entered into in the
ordinary course of business consistent with past practice, (iv) any restrictions imposed by
agreements governing any purchase money Liens or Capital Lease Obligations otherwise permitted
hereby (in which case, any prohibition or limitation shall only be effective against the assets
financed thereby) or (v) any restrictions existing under Sections 4.07 and 4.11 of the Senior
Subordinated Note Indenture.

                    8.16. Lines of Business . Enter into any business, either directly or through any
Subsidiary, except for those businesses in which the Borrower and its Subsidiaries are engaged on
the date of this Agreement (after giving effect to the Acquisition) or that are reasonably related
thereto.

                    8.17. Amendments to Acquisition Documents . (a) Amend, supplement or
otherwise modify (pursuant to a waiver or otherwise) the terms and conditions of the indemnities
and licenses furnished to the Borrower or any of its Subsidiaries pursuant to the Acquisition
Documentation such that after giving effect thereto such indemnities or licenses shall be
materially less favorable to the interests of the Loan Parties or the Lenders with respect thereto.

          (b) Otherwise amend, supplement or otherwise modify the terms and conditions of the
Acquisition Documentation except for any such amendment, supplement or modification that (i)
becomes effective after the Closing Date and (ii) could not reasonably be expected to have a
Material Adverse Effect.

                    8.18. Leases . Enter into any material lease with respect to real property unless the
Board of Directors or a Responsible Officer of the Borrower has determined that the economic and
other terms of such lease would result in positive cash flow to the Borrower and its Subsidiaries.

 

 

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SECTION 9.   EVENTS OF DEFAULT

          If any of the following events shall occur and be continuing:

          (a) the Borrower shall fail to pay any principal of any Loan or Reimbursement
Obligation when due in accordance with the terms hereof; or the Borrower shall fail to pay
any interest on any Loan or Reimbursement Obligation, or any other amount payable hereunder
or under any other Loan Document, within five days after any such interest or other amount
becomes due in accordance with the terms hereof; or

          (b) any representation or warranty made or deemed made by any Loan Party herein or in
any other Loan Document or that is contained in any certificate, document or financial or
other written statement furnished by it at any time under or in connection with this
Agreement or any such other Loan Document shall prove to have been inaccurate in any
material respect on or as of the date made or deemed made; or

          (c) (i) any Loan Party shall default in the observance or performance of any agreement
contained in clause (i) or (ii) of Section 7.4(a) (with respect to the Borrower only),
Section 7.7(a), Section 7.14 or Section 8 of this Agreement or Sections 5.5 and 5.7(b) of
the Guarantee and Collateral Agreement or (ii) an “Event of Default” under and as defined in
any Mortgage shall have occurred and be continuing; or

          (d) any Loan Party shall default in the observance or performance of any other
agreement contained in this Agreement or any other Loan Document (other than as provided in
paragraphs (a) through (c) of this Section), and such default shall continue unremedied for
a period of 30 days after notice to the Borrower from the Administrative Agent or the
Required Lenders; or

          (e) any Group Member (i) defaults in making any payment of any principal of any
Indebtedness (including any Guarantee Obligation, but excluding the Loans) on the scheduled
or original due date with respect thereto; or (ii) defaults in making any payment of any
interest on any such Indebtedness beyond the period of grace, if any, provided in the
instrument or agreement under which such Indebtedness was created; or (iii) defaults in the
observance or performance beyond any applicable grace period of any other agreement or
condition relating to any such Indebtedness or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event shall occur or condition exist
beyond any applicable grace period, the effect of which default or other event or condition
is to cause, or to permit the holder or beneficiary of such Indebtedness (or a trustee or
agent on behalf of such holder or beneficiary) to cause, with the giving of notice if
required, such Indebtedness to become due prior to its stated maturity or to become subject
to a mandatory offer to purchase by the obligor thereunder or (in the case of any such
Indebtedness constituting a Guarantee Obligation) to become payable; provided, that
a default, event or condition described in clause (i), (ii) or (iii) of this paragraph (e)
shall not at any time constitute an Event of Default unless, at such time, one or more
defaults, events or conditions of the type described in clauses (i), (ii) and (iii) of this
paragraph (e) shall have occurred and be continuing with respect to Indebtedness the
outstanding principal amount of which exceeds in the aggregate $5,000,000; or

 

 

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          (f) (i) any Material Group Member shall commence any case, proceeding or other action
(A) under any existing or future law of any jurisdiction, domestic or foreign, relating to
bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for
relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or
seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution,
composition or other relief with respect to it or its debts, or (B) seeking appointment of a
receiver, trustee, custodian, conservator or other similar official for it or for all or any
substantial part of its assets, or any Material Group Member shall make a general assignment
for the benefit of its creditors; or (ii) there shall be commenced against any Material
Group Member any case, proceeding or other action of a nature referred to in clause (i)
above that (A) results in the entry of an order for relief or any such adjudication or
appointment or (B) remains undismissed, undischarged or unbonded for a period of 60 days; or
(iii) there shall be commenced against any Material Group Member any case, proceeding or
other action seeking issuance of a warrant of attachment, execution, distraint or similar
process against all or any substantial part of its assets that results in the entry of an
order for any such relief that shall not have been vacated, discharged, or stayed or bonded
pending appeal within 60 days from the entry thereof; or (iv) any Material Group Member
shall take any action in furtherance of, or indicating its consent to, approval of, or
acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above; or (v) any
Material Group Member shall generally not, or shall be unable to, or shall admit in writing
its inability to, pay its debts as they become due; or

          (g) (i) any Person shall engage in any “prohibited transaction” (as defined in Section
406 of ERISA or Section 4975 of the Code) involving any Plan, (ii) any “accumulated funding
deficiency” (as defined in Section 302 of ERISA), whether or not waived, shall exist with
respect to any Plan or any Lien in favor of the PBGC or a Plan
shall arise on the assets of any Group Member or any Commonly Controlled Entity, (iii)
a Reportable Event shall occur with respect to, or proceedings shall commence to have a
trustee appointed, or a trustee shall be appointed, to administer or to terminate, any
Single Employer Plan, which Reportable Event or commencement of proceedings or appointment
of a trustee is, in the reasonable opinion of the Required Lenders, likely to result in the
termination of such Plan for purposes of Title IV of ERISA, (iv) any Single Employer Plan
shall terminate for purposes of Title IV of ERISA, (v) any Group Member or any Commonly
Controlled Entity shall, or in the reasonable opinion of the Required Lenders is likely to,
incur any liability in connection with a withdrawal from, or the Insolvency or
Reorganization of, a Multiemployer Plan or (vi) any other event or condition shall occur or
exist with respect to a Plan; and in each case in clauses (i) through (vi) above, such event
or condition, together with all other such events or conditions, if any, could, in the sole
judgment of the Required Lenders, reasonably be expected to have a Material Adverse Effect;
or

          (h) one or more judgments or decrees shall be entered against any Material Group Member
involving in the aggregate a liability (to the extent not paid or covered by insurance as to
which the relevant insurance company has acknowledged coverage) of $5,000,000 or more, and
all such judgments or decrees shall not have been vacated, discharged, stayed or bonded
pending appeal within 30 days from the entry thereof; or

 

 

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          (i) any of the Security Documents shall cease, for any reason, to be in full force and
effect, or any Loan Party or any Affiliate of any Loan Party shall so assert, or any Lien
created by any of the Security Documents shall cease to be enforceable and of the same
effect and priority purported to be created thereby; or

          (j) the guarantee contained in Section 2 of the Guarantee and Collateral Agreement
shall cease, for any reason, to be in full force and effect or any Loan Party or any
Affiliate of any Loan Party shall so assert; or

          (k) (i) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) shall become,
or obtain rights (whether by means or warrants, options or otherwise) to become, the
“beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act),
directly or indirectly, of more than forty percent (40%) of the outstanding common stock of
the Borrower; (ii) the board of directors of the Borrower shall cease to consist of a
majority of Continuing Directors; or (iii) a Specified Change of Control shall occur; or

          (l) the Senior Subordinated Notes or the guarantees thereof shall cease, for any
reason, to be validly subordinated to the Obligations or the obligations of the Subsidiary
Guarantors under the Guarantee and Collateral Agreement, as the case may be, as provided in
the Senior Subordinated Note Indenture, or any Loan Party, any Affiliate of any Loan Party,
the trustee in respect of the Senior Subordinated Notes or the holders of at least 25% in
aggregate principal amount of the Senior Subordinated Notes shall so assert on reasonable
grounds;

then, and in any such event, (A) if such event is an Event of Default specified in clause (i) or
(ii) of paragraph (f) above with respect to the Borrower, automatically the Commitments shall
immediately terminate and the Loans hereunder (with accrued interest thereon) and all other amounts
owing under this Agreement and the other Loan Documents (including all amounts of L/C Obligations
(to the extent not cash collateralized), other than any L/C Obligation arising solely from a Letter
of Credit for which an Application has been submitted and is pending, but which has not been
issued, whether or not the beneficiaries of the then outstanding Letters of Credit shall have
presented the documents required thereunder) shall immediately become due and payable, and (B) if
such event is any other Event of Default, either or both of the following actions may be taken: (i)
with the consent of the Required Lenders, the Administrative Agent may, or upon the request of the
Required Lenders, the Administrative Agent shall, by notice to the Borrower declare the Commitments
to be terminated forthwith, whereupon the Commitments shall immediately terminate; and (ii) with
the consent of the Required Lenders, the Administrative Agent may, or upon the request of the
Required Lenders, the Administrative Agent shall, by notice to the Borrower, declare the Loans
hereunder (with accrued interest thereon) and all other amounts owing under this Agreement and the
other Loan Documents (including all amounts of L/C Obligations (to the extent not cash
collateralized), other than any L/C Obligation arising solely from a Letter of Credit for which an
Application has been submitted and is pending, but which has not been issued, whether or not the
beneficiaries of the then outstanding Letters of Credit shall have presented the documents required
thereunder) to be due and payable forthwith, whereupon the same shall immediately become due and
payable. With respect to all Letters of Credit with respect to which presentment for honor shall
not have

 

 

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occurred at the time of an acceleration pursuant to this paragraph, the Borrower shall at
such time deposit in a cash collateral account opened by the Administrative Agent an amount equal
to 105% of the aggregate then undrawn and unexpired amount of such Letters of Credit. Amounts held
in such cash collateral account shall be applied by the Administrative Agent to the payment of
drafts drawn under such Letters of Credit, and the unused portion thereof after all such Letters of
Credit shall have expired or been fully drawn upon, if any, shall be applied to repay other
obligations of the Borrower hereunder and under the other Loan Documents. After all such Letters
of Credit shall have expired or been fully drawn upon, all Reimbursement Obligations shall have
been satisfied and all other obligations of the Borrower hereunder and under the other Loan
Documents shall have been paid in full, the balance, if any, in such cash collateral account shall
be returned to the Borrower (or such other Person as may be lawfully entitled thereto). Except as
expressly provided above in this Section, presentment, demand, protest and all other notices of any
kind are hereby expressly waived by the Borrower.

SECTION 10.   THE AGENTS

                    10.1. Appointment . Each Lender hereby irrevocably designates and appoints each Agent
as the agent of such Lender under this Agreement and the other Loan Documents, and each such Lender
irrevocably authorizes such Agent, in such capacity, to take such action on its behalf under the
provisions of this Agreement and the other Loan Documents and to exercise such powers and perform
such duties as are expressly delegated to such Agent by the terms of this Agreement and the other
Loan Documents, together with such other powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary elsewhere in this Agreement, no Agent shall have any
duties or responsibilities, except those expressly set forth herein, or any fiduciary relationship
with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Agreement or any
other Loan Document or otherwise exist against any Agent.

                    10.2. Delegation of Duties . Each Agent may execute any of its duties under this
Agreement and the other Loan Documents by or through agents or attorneys-in-fact and shall be
entitled to advice of counsel concerning all matters pertaining to such duties. No Agent shall be
responsible for the negligence or misconduct of any agents or attorneys in-fact selected by it with
reasonable care.

                    10.3. Exculpatory Provisions . Neither any Agent nor any of their respective
officers, directors, employees, agents, attorneys-in-fact or affiliates shall be (i) liable for any
action lawfully taken or omitted to be taken by it or such Person under or in connection with this
Agreement or any other Loan Document (except to the extent that any of the foregoing are found by a
final and nonappealable decision of a court of competent jurisdiction to have resulted from its or
such Person’s own gross negligence or willful misconduct) or (ii) responsible in any manner to any
of the Lenders for any recitals, statements, representations or warranties made by any Loan Party
or any officer thereof contained in this Agreement or any other Loan Document or in any
certificate, report, statement or other document referred to or provided for in, or received by the
Agents under or in connection with, this Agreement or any other Loan Document or for the value,
validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other
Loan Document or for any failure of any Loan Party a party thereto to perform its obligations
hereunder or thereunder. The Agents shall not be under any obligation to

 

 

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any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or
conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or
records of any Loan Party.

                    10.4. Reliance by Agents . Each Agent shall be entitled to rely, and shall be fully
protected in relying, upon any instrument, writing, resolution, notice, consent, certificate,
affidavit, letter, telecopy, telex or teletype message, statement, order or other document or
conversation believed by it to be genuine and correct and to have been signed, sent or made by the
proper Person or Persons and upon advice and statements of legal counsel (including counsel to the
Borrower), independent accountants and other experts selected by such Agent. The Administrative
Agent may deem and treat the payee of any Note as the owner thereof for all purposes unless a
written notice of assignment, negotiation or transfer thereof shall have been filed with the
Administrative Agent. Each Agent shall be fully justified in failing or refusing to take any
action under this Agreement or any other Loan Document unless it shall first receive such advice or
concurrence of the Required Lenders (or, if so specified by this Agreement, all Lenders) as it
deems appropriate or it shall first be indemnified to its satisfaction by the Lenders against any
and all liability and expense that may be incurred by it by reason of taking or continuing to take
any such action. The Agents shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement and the other Loan Documents in accordance with a request of the
Required Lenders (or, if so specified by this Agreement, all Lenders), and such request and any
action taken or failure to act pursuant thereto shall be binding upon all the Lenders and all
future holders of the Loans.

                    10.5. Notice of Default . No Agent shall be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default hereunder unless such Agent has received notice from
a Lender, the Borrower referring to this Agreement, describing such Default or Event of Default and
stating that such notice is a “notice of default”. In the event that the Administrative Agent
receives such a notice, the Administrative Agent shall give notice thereof to the Lenders. The
Administrative Agent shall take such action with respect to such Default or Event of Default as
shall be reasonably directed by the Required Lenders (or, if so specified by this Agreement, all
Lenders or any other instructing group of Lenders specified by this Agreement); provided that
unless and until the Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from taking such action,
with respect to such Default or Event of Default as it shall deem advisable in the best interests
of the Lenders.

                    10.6. Non-Reliance on Agents and Other Lenders . Each Lender expressly acknowledges
that neither the Agents nor any of their respective officers, directors, employees, agents,
attorneys-in-fact or affiliates have made any representations or warranties to it and that no act
by any Agent hereafter taken, including any review of the affairs of a Loan Party or any affiliate
of a Loan Party, shall be deemed to constitute any representation or warranty by any Agent to any
Lender. Each Lender represents to the Agents that it has, independently and without reliance upon
any Agent or any other Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Loan Parties and their affiliates and
made its own decision to make its Loans hereunder and enter into this Agreement. Each Lender also
represents that it will, independently and without reliance

 

 

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upon any Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit analysis, appraisals and decisions in taking or not taking action under this
Agreement and the other Loan Documents, and to make such investigation as it deems necessary to
inform itself as to the business, operations, property, financial and other condition and
creditworthiness of the Loan Parties and their affiliates. Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the Administrative Agent hereunder,
the Administrative Agent shall not have any duty or responsibility to provide any Lender with any
credit or other information concerning the business, operations, property, condition (financial or
otherwise), prospects or creditworthiness of any Loan Party or any affiliate of a Loan Party that
may come into the possession of the Administrative Agent or any of its officers, directors,
employees, agents, attorneys-in-fact or affiliates.

                    10.7. Indemnification . The Lenders agree to indemnify each Agent in its capacity as
such (to the extent not reimbursed by the Borrower and without limiting the obligation of the
Borrower to do so), ratably according to their respective Aggregate Exposure Percentages in effect
on the date on which indemnification is sought under this Section (or, if indemnification is sought
after the date upon which the Commitments shall have terminated and the Loans shall have been paid
in full, ratably in accordance with such Aggregate Exposure
Percentages immediately prior to such date), from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind whatsoever that may at any time (whether before or after the payment of
the Loans) be imposed on, incurred by or asserted against such Agent in any way relating to or
arising out of, the Commitments, this Agreement, any of the other Loan Documents or any documents
contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby
or any action taken or omitted by such Agent under or in connection with any of the foregoing;
provided that no Lender shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements that are found by a final and nonappealable decision of a court of competent
jurisdiction to have resulted from such Agent’s gross negligence or willful misconduct. The
agreements in this Section shall survive the payment of the Loans and all other amounts payable
hereunder.

                    10.8. Agent in Its Individual Capacity . Each Agent and its affiliates may make loans
to, accept deposits from and generally engage in any kind of business with any Loan Party as though
such Agent were not an Agent. With respect to its Loans made or renewed by it and with respect to
any Letter of Credit issued or participated in by it, each Agent shall have the same rights and
powers under this Agreement and the other Loan Documents as any Lender and may exercise the same as
though it were not an Agent, and the terms “Lender” and “Lenders” shall include each Agent in its
individual capacity.

                    10.9. Successor Administrative Agent . The Administrative Agent may resign as
Administrative Agent upon 20 days’ notice to the Lenders and the Borrower. If the Administrative
Agent shall resign as Administrative Agent under this Agreement and the other Loan Documents, then
the Required Lenders shall appoint from among the Lenders a successor agent for the Lenders, which
successor agent shall (unless an Event of Default shall have occurred and be continuing) be subject
to approval by the Borrower (which approval shall not be

 

 

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unreasonably withheld or delayed), whereupon such successor agent shall succeed to the rights, powers and duties of the Administrative
Agent, and the term “Administrative Agent” shall mean such successor agent effective upon such
appointment and approval, and the former Administrative Agent’s rights, powers and duties as
Administrative Agent shall be terminated, without any other or further act or deed on the part of
such former Administrative Agent or any of the parties to this Agreement or any holders of the
Loans. If no successor agent has accepted appointment as Administrative Agent by the date that is
20 days following a retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become effective and the Lenders
shall assume and perform all of the duties of the Administrative Agent hereunder until such time,
if any, as the Required Lenders appoint a successor agent as provided for above. After any
retiring Administrative Agent’s resignation as Administrative Agent, the provisions of this Section
10 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement and the other Loan Documents.

                    10.10. Agents Generally . Except as expressly set forth herein, no Agent shall have
any duties or responsibilities hereunder in its capacity as such.

                    10.11. The Lead Arranger and Documentation Agent . Neither the Lead Arranger nor the
Documentation Agent, in their capacities as such, shall have any duties or responsibilities, or
incur any liability, under this Agreement and other Loan Documents.

SECTION 11.   MISCELLANEOUS

                    11.1. Amendments and Waivers . Neither this Agreement, any other Loan Document, nor
any terms hereof or thereof may be amended, supplemented or modified except in accordance with the
provisions of this Section 11.1. The Required Lenders and each Loan Party party to the relevant
Loan Document may, or, with the written consent of the Required Lenders, the Administrative Agent
and each Loan Party party to the relevant Loan Document may, from time to time, (a) enter into
written amendments, supplements or modifications hereto and to the other Loan Documents for the
purpose of adding any provisions to this Agreement or the other Loan Documents or changing in any
manner the rights of the Lenders or of the Loan Parties hereunder or thereunder or (b) waive, on
such terms and conditions as the Required Lenders or the Administrative Agent, as the case may be,
may specify in such instrument, any of the requirements of this Agreement or the other Loan
Documents or any Default or Event of Default and its consequences; provided, however, that no such
waiver and no such amendment, supplement or modification shall (i) forgive the principal amount or
extend the final scheduled date of maturity of any Loan, extend the scheduled date of any
amortization payment in respect of any Term Loan, reduce the stated rate of any interest or fee
payable hereunder (except (x) in connection with the waiver of applicability of any post-default
increase in interest rates, which waiver shall be effective with the consent of the Majority
Facility Lenders of each adversely affected Facility) and (y) that any amendment or modification of
defined terms used in the financial covenants in this Agreement shall not constitute a reduction in
the rate of interest or fees for purposes of this clause (i)) or extend the scheduled date of any
payment thereof, or increase the amount or extend the expiration date of any Lender’s Revolving
Commitment, in each case without the written consent of each Lender directly affected thereby; (ii)
eliminate or reduce the voting rights of any Lender under this Section 11.1 without the written
consent of

 

 

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such Lender; (iii) reduce any percentage specified in the definition of Required
Lenders, consent to the assignment or transfer by the Borrower of any of its rights and obligations
under this Agreement and the other Loan Documents, release all or substantially all of the
Collateral or release all or substantially all of the Subsidiary Guarantors from their obligations
under the Guarantee and Collateral Agreement, in each case without the written consent of all
Lenders; (iv) amend, modify or waive any condition precedent to any extension of credit under the
Revolving Facility set forth in Section 6.2 (including in connection with any waiver of an existing
Default or Event of Default) without the written consent of the Majority Facility Lenders with
respect to the Revolving Facility; (v) amend, modify or waive any provision of Section 4.8 without
the written consent of the Majority Facility Lenders in respect of each Facility adversely affected
thereby; (vi) amend, modify or waive any provision which disproportionately (when compared to the
effect of such amendment, modification or waiver on any other Facility) and adversely affects any
Facility without the written consent of the Majority Facility Lenders with respect to such
Facility; (vii) reduce the amount of Net Cash Proceeds or Excess Cash Flow required to be applied
to prepay Loans under this Agreement without the written consent of the Majority Facility Lenders
with respect to each Facility; (viii) reduce the percentage specified in
the definition of Majority Facility Lenders with respect to any Facility without the written
consent of all Lenders under such Facility; (ix) amend, modify or waive any provision of Section 10
without the written consent of each Agent adversely affected thereby; (x) amend, modify or waive
any provision of Section 3.3 or 3.4 without the written consent of the Swingline Lender; or (xi)
amend, modify or waive any provision of Sections 3.7 to 3.14 without the written consent of the
Issuing Lender. Any such waiver and any such amendment, supplement or modification shall apply
equally to each of the Lenders and shall be binding upon the Loan Parties, the Lenders, the Agents
and all future holders of the Loans. In the case of any waiver, the Loan Parties, the Lenders and
the Agents shall be restored to their former position and rights hereunder and under the other Loan
Documents, and any Default or Event of Default waived shall be deemed to be cured and not
continuing; but no such waiver shall extend to any subsequent or other Default or Event of Default,
or impair any right consequent thereon.

                    In addition, notwithstanding the foregoing, this Agreement may be amended with the written
consent of the Administrative Agent, the Borrower and the Lenders providing the relevant
Replacement Term Loans (as defined below) to permit the refinancing of all outstanding Initial Term
Loans or all outstanding Delayed-Draw Term Loans (“Refinanced Term Loans”) with a
replacement term loan tranche hereunder (“Replacement Term Loans”), provided that
(a) the aggregate principal amount of such Replacement Term Loans shall not exceed the aggregate
principal amount of such Refinanced Term Loans, (b) the Applicable Margin for such Replacement Term
Loans shall not be higher than the Applicable Margin for such Refinanced Term Loans, (c) the
weighted average life to maturity of such Replacement Term Loans shall not be shorter than the
weighted average life to maturity of such Refinanced Term Loans at the time of such refinancing and
(d) all other terms applicable to such Replacement Term Loans shall be substantially identical to,
or not materially more favorable to the Lenders providing such Replacement Term Loans than, those
applicable to such Refinanced Term Loans, except to the extent necessary to provide for covenants
and other terms applicable to any period after the latest final maturity of the Term Loans in
effect immediately prior to such refinancing.

                    If, in connection with any proposed amendment, modification, waiver or termination requiring
the consent of all Lenders (including all Lenders under a single Facility),

 

 

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the consent of the Required Lenders (or Majority Facility Lenders, as the case may be) is obtained, but the consent of
other Lenders whose consent is required is not obtained (any such Lender whose consent is not
obtained being referred to as a “Non-Consenting Lender”), then, so long as the
Administrative Agent is not a Non-Consenting Lender, the Administrative Agent or a Person
reasonably acceptable to the Administrative Agent shall have the right to purchase from such
Non-Consenting Lenders, and such Non-Consenting Lenders agree that they shall, upon the
Administrative Agent’s request, sell and assign to the Administrative Agent or such Person, all of
the Initial Term Loans, Delayed-Draw Term Loans and/or Incremental Term Loans of such
Non-Consenting Lenders for an amount equal to the principal balance of all Initial Term Loans,
Delayed-Draw Term Loans and/or Incremental Term Loans held by such Non-Consenting Lenders and all
accrued interest and fees with respect thereto through the date of sale, such purchase and sale to
be consummated pursuant to an executed Assignment and Assumption. In addition to the foregoing,
the Borrower may replace any Non-Consenting Lender pursuant to Section 4.13.

                    11.2. Notices and Communications . All notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by telecopy), and, unless
otherwise expressly provided herein, shall be deemed to have been duly given or made when
delivered, or three Business Days after being deposited in the mail, postage prepaid, or, in the
case of telecopy notice, when received, addressed as follows in the case of the Borrower and the
Agents, and as set forth in an administrative questionnaire delivered to the Administrative Agent
in the case of the Lenders, or to such other address as may be hereafter notified by the respective
parties hereto:

	 	 	 	 	 
	

	 	The Borrower:
	 	Carmike Cinemas, Inc.
	

	 	 	 	1301 First Avenue
	

	 	 	 	Columbus, Georgia 31901
	

	 	 	 	Attention:      Martin A. Durant
	

	 	 	 	Telecopy:      (706) 324-0470
	

	 	 	 	Telephone:      (706) 576-3415
	 
	 	 	 	 
	

	 	The Administrative Agent:
	 	Bear Stearns Corporate Lending Inc.
	

	 	 	 	383 Madison Avenue
	

	 	 	 	New York, New York 10179
	

	 	 	 	Attention:      Kevin Cullen
	

	 	 	 	Telecopy:      (212) 272-9184
	

	 	 	 	Telephone:      (212) 272-5724

provided that any notice, request or demand to or upon any Agent, the Issuing Lender or the
Lenders shall not be effective until received.

                    Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative Agent;
provided that the foregoing shall not apply to notices pursuant to Section 2 unless
otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent
or the Borrower may, in its discretion, agree to accept notices and other communications

 

 

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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.

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

                    11.4. Survival of Representations and Warranties . All representations and warranties
made hereunder, in the other Loan Documents and in any document, certificate or statement delivered
pursuant hereto or in connection herewith shall survive the execution and delivery of this
Agreement and the making of the Loans and other extensions of credit hereunder.

                    11.5. Payment of Expenses and Taxes . The Borrower agrees (a) to pay or reimburse
each Agent for all its reasonable out-of-pocket costs and expenses incurred in connection with the
development, preparation and execution of, and any amendment, supplement or modification to, this
Agreement and the other Loan Documents and any other documents prepared in connection herewith or
therewith, and the consummation of the transactions contemplated hereby and thereby, including the
reasonable fees and disbursements of counsel to such Agent and filing and recording fees and
expenses, with statements with respect to the foregoing to be submitted to the Borrower prior to
the Closing Date (in the case of amounts to be paid on the Closing Date) and from time to time
thereafter on a quarterly basis or such other periodic basis as such Agent shall deem appropriate,
(b) to pay or reimburse each Lender and Agent for all its costs and expenses incurred in connection
with the enforcement or preservation of any rights under this Agreement, the other Loan Documents
and any such other documents, including the fees and disbursements of counsel (including the
allocated fees and expenses of in-house counsel) to each Lender and of counsel to such Agent
(including all such amounts incurred in any bankruptcy or other insolvency proceeding), (c) to pay,
indemnify, and hold each Lender and Agent harmless from, any and all recording and filing fees and
any and all liabilities with respect to, or resulting from any delay in paying, stamp, excise and
other taxes, if any, that may be payable or determined to be payable in connection with the
execution and delivery of, or consummation or administration of any of the transactions
contemplated by, or any amendment, supplement or modification of, or any waiver or consent under or
in respect of, this Agreement, the other Loan Documents and any such other documents, and (d) to
pay, indemnify, and hold each Lender and Agent and their respective officers, directors, employees,
affiliates, agents, attorneys and controlling persons (each, an “Indemnitee”) harmless from and
against any and all other liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the
execution, delivery, enforcement, performance and administration of this Agreement, the other Loan
Documents (regardless of whether any Loan Party is or is not a party to any such actions or suits)
and any such other documents, including any of the foregoing relating to the use of proceeds of the
Loans or the violation of, noncompliance with or liability under, any Environmental Law applicable
to the operations of any Group Member or any of the Properties and the reasonable fees and expenses
of legal counsel in connection with claims, actions or proceedings by any Indemnitee

 

 

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against any Loan Party under any Loan Document (all the foregoing in this clause (d), collectively, the
“Indemnified Liabilities”), provided, that the Borrower shall have no obligation hereunder to any
Indemnitee with respect to Indemnified Liabilities to the extent such Indemnified Liabilities are
found by a final and nonappealable decision of a court of competent jurisdiction to have resulted
from the gross negligence or willful misconduct of such Indemnitee. Without limiting the
foregoing, and to the extent permitted by applicable law, the Borrower agrees not to assert and to
cause its Subsidiaries not to assert, and hereby waives and agrees to cause its Subsidiaries to
waive, all rights for contribution or any other rights of recovery with respect to all claims,
demands, penalties, fines, liabilities, settlements, damages, costs and expenses of whatever kind
or nature, under or related to Environmental Laws, that any of them might have by statute or
otherwise against any Indemnitee. All amounts due under this
Section 11.5 shall be payable not later than 10 days after written demand therefor.
Statements payable by the Borrower pursuant to this Section 11.5 shall be submitted to Martin A.
Durant (Telephone No. (706) 576-3415) (Telecopy No. (706) 324-0470), at the address of the Borrower
set forth in Section 11.2, or to such other Person or address as may be hereafter designated by the
Borrower in a written notice to the Administrative Agent. The agreements in this Section 11.5
shall survive the termination of this Agreement and repayment of the Loans and all other amounts
payable hereunder.

                    11.6. Successors and Assigns; Participations and Assignments . (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 Lender that issues any Letter of Credit), except that (i) the Borrower may not 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 the 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.

          (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may
assign to one or more assignees (each, an “Assignee”) all or a portion of its rights
and obligations under this Agreement (including all or a portion of its Commitments and the
Loans at the time owing to it) with the prior written consent (such consent not to be
unreasonably withheld) of:

          (A) the Borrower, provided that no consent of the Borrower shall be
required for an (x) assignment to a Lender, an affiliate of a Lender or, if an Event
of Default has occurred and is continuing, any other Person, (y) any assignment by
the Administrative Agent (or its affiliates) or (z) any assignment of Term Loans or
Commitments in respect of Term Loans; and

          (B) the Administrative Agent, provided that no consent of the Administrative
Agent shall be required for (x) an assignment to an Assignee that is a Lender
immediately prior to giving effect to such assignment, except in the case of an
assignment of a Revolving Commitment to an Assignee that does not already have a
Revolving Commitment, (y) any assignment by the Administrative Agent (or its
affiliates) or (z) any assignment of Term Loans; and

 

 

86

          (C) in the case of any assignment of a Revolving Commitment, the Issuing Lender
and the Swingline Lender.

          (ii) Assignments shall be subject to the following additional conditions:

          (A) except in the case of an assignment to a Lender, an affiliate of a Lender
or an Approved Fund (as defined below) or an assignment of the entire remaining
amount of the assigning Lender’s Commitments or Loans under any Facility, the amount
of the Commitments 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 $2,500,000 (or, in the case of the Initial Term
Facility, the Delayed-Draw Term Facility or the Other Term Facility or any
assignment to a Lender, an affiliate of a Lender or an Approved Fund, $1,000,000)
unless each of the Borrower and the Administrative Agent otherwise consent,
provided that (1) no such consent of the Borrower shall be required if an
Event of Default has occurred and is continuing and (2) such amounts shall be
aggregated in respect of each Lender and its affiliates or Approved Funds, if any;

          (B) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption;

          (C) the Assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an administrative questionnaire; and

          (D) in the case of an assignment to a related CLO (as defined below), the
assigning Lender shall retain the sole right to approve any amendment, modification
or waiver of any provision of this Agreement and the other Loan Documents, provided
that the Assignment and Assumption between such Lender and such CLO may provide that
such Lender will not, without the consent of such CLO, agree to any amendment,
modification or waiver that (1) requires the consent of each Lender directly
affected thereby pursuant to the proviso to the second sentence of Section 11.1 and
(2) directly affects such CLO.

          For the purposes of this Section 11.6, the terms “Approved Fund” and
“CLO” have the following meanings:

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

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

 

 

87

          (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) below,
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 4.9, 4.10, 4.11 and 10.5). Any
assignment or transfer by a Lender of rights or obligations under this Agreement that does
not comply with this Section 11.6 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.

          (iv) The Administrative Agent, acting for this purpose as an agent of the Borrower,
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
Commitments of, and principal amount of the Loans and L/C Obligations owing to, each Lender
pursuant to the terms hereof from time to time (the “Register”). The entries in the
Register shall be conclusive, and the Borrower, the Administrative Agent, the Issuing Lender
and the Lenders may treat each Person whose name is recorded in the Register pursuant to the
terms hereof as a Lender hereunder for all purposes of this Agreement, absent written notice
to the contrary demonstrating manifest error.

          (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
(unless the Assignee shall already be a Lender hereunder), and any written consent to such
assignment required by paragraph (b) of this Section, the Administrative Agent shall accept
such Assignment and Assumption and record the information contained therein in the Register.
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 the Borrower or the Administrative Agent,
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 Commitments 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
Borrower, the Administrative Agent, the Issuing Lender 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 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 may provide that such Lender will not, without
the consent of the Participant, agree to any amendment,

 

 

88

modification or waiver that (1)requires the consent of each Lender directly affected thereby pursuant to the proviso to the
second sentence of Section 11.1 and (2) directly affects such Participant. Subject to
paragraph (c)(ii) of this Section, the Borrower agrees that each Participant shall be entitled
to the benefits of Sections 4.9, 4.10 and 4.11 to the same extent as if it were a Lender and
had acquired its interest by assignment pursuant to paragraph (b) of this Section. To the
extent permitted by law, each Participant also shall be entitled to the benefits of Section
11.7(b) as though it were a Lender, provided such Participant shall be subject to Section
11.7(a) as though it were a Lender.

          (ii) A Participant shall not be entitled to receive any greater payment under Section
4.9 or 4.10 than the applicable Lender would have been entitled to receive with
respect to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrower’s prior written consent. Any
Participant that is a Non-U.S. Lender shall not be entitled to the benefits of Section 4.10
unless such Participant complies with Section 4.10(d).

                      (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 any pledge
or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not 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) The Borrower, upon receipt of written notice from the relevant Lender, agrees to issue
Notes to any Lender requiring Notes to facilitate transactions of the type described in
paragraph (d) above.

                      (f) Notwithstanding the foregoing, any Conduit Lender may assign any or all of the Loans
it may have funded hereunder to its designating Lender without the consent of the Borrower or
the Administrative Agent and without regard to the limitations set forth in Section 11.6(b).
Each of the Borrower, each Lender and the Administrative Agent hereby confirms that it will not
institute against a Conduit Lender or join any other Person in instituting against a Conduit
Lender any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding under
any state bankruptcy or similar law, for one year and one day after the payment in full of the
latest maturing commercial paper note issued by such Conduit Lender; provided, however,
that each Lender designating any Conduit Lender hereby agrees to indemnify, save and hold
harmless each other party hereto for any loss, cost, damage or expense arising out of its
inability to institute such a proceeding against such Conduit Lender during such period of
forbearance.

                    11.7. Adjustments; Set-off . (a) Except to the extent that this Agreement
expressly provides for payments to be allocated to a particular Lender or to the Lenders under a
particular Facility, if any Lender (a “Benefitted Lender”) shall receive any payment of all or part
of the Obligations owing to it, or receive any collateral in respect thereof (whether voluntarily
or involuntarily, by set-off, pursuant to events or proceedings of the nature referred to in
Section 9(f), or otherwise), in a greater proportion than any such payment to or collateral
received by any other Lender, if any, in respect of the Obligations owing to such other Lender,

 

 

89

such Benefitted Lender shall purchase for cash from the other Lenders a participating interest in
such portion of the Obligations owing to each such other Lender, or shall provide such other
Lenders with the benefits of any such collateral, as shall be necessary to cause such Benefitted
Lender to share the excess payment or benefits of such collateral ratably with each of the Lenders;
provided, however, that if all or any portion of such excess payment or benefits is thereafter
recovered from such Benefitted Lender, such purchase shall be rescinded, and the purchase price and
benefits returned, to the extent of such recovery, but without interest.

          (b) In addition to any rights and remedies of the Lenders provided by law, each Lender
shall have the right, without prior notice to the Borrower, any such notice being expressly
waived by the Borrower to the extent permitted by applicable law, upon any
amount becoming due and payable by the Borrower hereunder (whether at the stated maturity,
by acceleration or otherwise), to set off and appropriate and apply against such amount any and
all deposits (general or special, time or demand, provisional or final), in any currency, and
any other credits, indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or owing by such
Lender or any branch or agency thereof to or for the credit or the account of the Borrower, as
the case may be. Each Lender agrees promptly to notify the Borrower and the Administrative
Agent after any such setoff and application made by such Lender, provided that the
failure to give such notice shall not affect the validity of such setoff and application.

                    11.8. Counterparts . This Agreement may be executed by one or more of the parties to
this Agreement on any number of separate counterparts, and all of said counterparts taken together
shall be deemed to constitute one and the same instrument. Delivery of an executed signature page
of this Agreement by facsimile transmission shall be effective as delivery of a manually executed
counterpart hereof. A set of the copies of this Agreement signed by all the parties shall be
lodged with the Borrower and the Administrative Agent.

                    11.9. Severability . Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

                    11.10. Integration . This Agreement and the other Loan Documents represent the entire
agreement of the Borrower, the Agents and the Lenders with respect to the subject matter hereof and
thereof, and there are no promises, undertakings, representations or warranties by any Agent or any
Lender relative to subject matter hereof not expressly set forth or referred to herein or in the
other Loan Documents.

                    11.11. GOVERNING LAW . THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE
LAW OF THE STATE OF NEW YORK.

 

 

90

                    11.12. Submission To Jurisdiction; Waivers . The Borrower hereby irrevocably and
unconditionally:

          (a) submits for itself and its property in any legal action or proceeding relating to
this Agreement and the other Loan Documents to which it is a party, or for recognition and
enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of
the courts of the State of New York, the courts of the United States for the Southern
District of New York, and appellate courts from any thereof;

          (b) consents that any such action or proceeding may be brought in such courts and
waives any objection that it may now or hereafter have to the venue of any such
action or proceeding in any such court or that such action or proceeding was brought in
an inconvenient court and agrees not to plead or claim the same;

          (c) agrees that service of process in any such action or proceeding may be effected by
mailing a copy thereof by registered or certified mail (or any substantially similar form of
mail), postage prepaid, to the Borrower, as the case may be at its address set forth in
Section 11.2 or at such other address of which the Administrative Agent shall have been
notified pursuant thereto;

          (d) agrees that nothing herein shall affect the right to effect service of process in
any other manner permitted by law or shall limit the right to sue in any other jurisdiction;
and

          (e) waives, to the maximum extent not prohibited by law, any right it may have to claim
or recover in any legal action or proceeding referred to in this Section any special,
exemplary, punitive or consequential damages.

          11.13. Acknowledgments . The Borrower hereby acknowledges that:

          (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Loan Documents;

          (b) no Agent or Lender has any fiduciary relationship with or duty to the Borrower
arising out of or in connection with this Agreement or any of the other Loan Documents, and
the relationship between the Agents and Lenders, on one hand, and the Borrower, on the other
hand, in connection herewith or therewith is solely that of debtor and creditor; and

          (c) no joint venture is created hereby or by the other Loan Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Lenders or among the
Borrower and the Lenders.

                    11.14. Releases of Guarantees and Liens . (a) Notwithstanding anything to
the contrary contained herein or in any other Loan Document, the Administrative Agent is hereby
irrevocably authorized by each Lender (without requirement of notice to or consent of any Lender
except as expressly required by Section 11.1) to take any action requested by the Borrower having
the effect of releasing any Collateral or guarantee obligations (i) to the extent

 

 

91

necessary to permit consummation of any transaction not prohibited by any Loan Document or that has been
consented to in accordance with Section 11.1 or (ii) under the circumstances described in paragraph
(b) below.

          (b) At such time as the Loans, the Reimbursement Obligations and the other Obligations
(other than Obligations under or in respect of Hedge Agreements) shall have been paid in full,
the Commitments have been terminated and no Letters of Credit shall be outstanding, the
Collateral shall be released from the Liens created by the Security Documents, and the Security
Documents and all obligations (other than those expressly stated to survive such termination)
of the Administrative Agent and each Loan Party under
the Security Documents shall terminate, all without delivery of any instrument or
performance of any act by any Person.

                    11.15. Confidentiality . Each Agent and each Lender agrees to keep confidential all
non-public information provided to it by any Loan Party pursuant to this Agreement that is
designated by such Loan Party as confidential; provided that nothing herein shall prevent any Agent
or any Lender from disclosing any such information (a) to any Agent, any other Lender or any Lender
Affiliate, (b) subject to an agreement to comply with the provisions of this Section, to any actual
or prospective Transferee or any direct or indirect counterparty to any Hedge Agreement (or any
professional advisor to such counterparty), (c) to its employees, directors, agents, attorneys,
accountants and other professional advisors or those of any of its affiliates who are advised by
the Agent or Lender as to the confidential nature of such information, (d) upon the request or
demand of any Governmental Authority, (e) in response to any order of any court or other
Governmental Authority or as may otherwise be required pursuant to any Requirement of Law, (f) if
requested or required to do so in connection with any litigation or similar proceeding, (g) that
has been publicly disclosed (other than as a result of a breach of confidentiality known by the
Agent or Lender to have occurred), (h) to the National Association of Insurance Commissioners or
any similar organization or any nationally recognized rating agency that requires access to
information about a Lender’s investment portfolio in connection with ratings issued with respect to
such Lender, or (i) in connection with the exercise of any remedy hereunder or under any other Loan
Document.

                    11.16. WAIVERS OF JURY TRIAL . THE BORROWER, THE AGENTS AND THE LENDERS HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

                    11.17. Delivery of Addenda . Each initial Lender (other than any Agent that is also a
Lender) shall become a party to this Agreement by delivering to the Administrative Agent an
Addendum duly executed by such Lender.

 

 

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

	 	 	 	 	 
	 	CARMIKE CINEMAS, INC.

 	 
	 	By:  	     /s/ Martin A. Durant
 	 
	 	 	Name:  	Martin A. Durant 	 
	 	 	Title:  	Senior Vice President – Finance

     Treasurer and Chief Financial Officer 	 

Signature Page to the Credit Agreement for Carmike Cinemas, Inc.

 

	 	 	 	 	 

	 	 	 	 	 
	 	BEAR, STEARNS & CO. INC.,

as Sole Lead Arranger and Sole Bookrunner

 	 
	 	By:  	     /s/   Victor F. Bulzacchelli
 	 
	 	 	Name:  	Victor F. Bulzacchelli 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	BEAR STEARNS CORPORATE LENDING INC., as

Administrative Agent and as a Lender

 	 
	 	By:  	     /s/   Victor Bulzacchelli
 	 
	 	 	Name:  	Victor Bulzacchelli 	 
	 	 	Title:  	Vice President 	 

Signature Page to the Credit Agreement for Carmike Cinemas, Inc.

 

	 	 	 	 	 

	 	 	 	 	 
	 	WELLS FARGO FOOTHILL, INC., as Documentation Agent,
as Issuing Lender
and as a Lender

 	 
	 	By:  	     /s/   Kevin S. Fong
 	 
	 	 	Name:  	Kevin S. Fong 	 
	 	 	Title:  	Vice President 	 

Signature Page to the Credit Agreement for Carmike Cinemas, Inc.

 

	 	 	 	 	 

	 	 	 	 	 
	 	THE FOOTHILL GROUP, INC.,

as a Lender

 	 
	 	By:  	     /s/   Sean T. Dixon
 	 
	 	 	Name:  	Sean T. Dixon 	 
	 	 	Title:  	Vice President 	 

Signature Page to the Credit Agreement for Carmike Cinemas, Inc.

 

	 	 	 	 	 

Annex A

PRICING GRID FOR REVOLVING LOANS AND SWINGLINE LOANS

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Applicable Margin	 	 	 	 
	 	 	 	 	for Eurodollar	 	 	Applicable Margin for	 
	 	Pricing Level	 	 	Loans	 	 	Base Rate Loans	 
	 	I
	 	 	2.25%	 	 	1.25%	 
	 	II
	 	 	1.75%	 	 	0.75%	 
	 	III
	 	 	1.50%	 	 	0.50%	 
	 

The Applicable Margin for Revolving Loans and Swingline Loans shall be adjusted, on and after the
first Adjustment Date (as defined below) occurring after the date which is six months after the
Closing Date, based on changes in the Consolidated Leverage Ratio, with such adjustments to become
effective on the date (the “Adjustment Date”) that is three Business Days after the date on
which the relevant financial statements are delivered to the Lenders pursuant to Section 7.1 and to
remain in effect until the next adjustment to be effected pursuant to this paragraph. If any
financial statements referred to above are not delivered within the time periods specified in
Section 7.1, then, until the date that is three Business Days after the date on which such
financial statements are delivered, the highest rate set forth in each column of the Pricing Grid
shall apply. On each Adjustment Date, the Applicable Margin for Revolving Loans and Swingline
Loans shall be adjusted to be equal to the Applicable Margins opposite the Pricing Level determined
to exist on such Adjustment Date from the financial statements relating to such Adjustment Date.

                    As used herein, the following rules shall govern the determination of Pricing Levels on each
Adjustment Date:

                    “Pricing Level I” shall exist on an Adjustment Date if the Consolidated Leverage Ratio
for the relevant period is greater than 3.50 to 1.00.

                    “Pricing Level II” shall exist on an Adjustment Date if the Consolidated Leverage
Ratio for the relevant period is less than or equal to 3.50 to 1.00 but greater than 2.50 to 1.00.

                    “Pricing Level III” shall exist on an Adjustment Date if the Consolidated Leverage
Ratio for the relevant period is less than or equal to 2.50 to 1.00.

 

 

EXHIBIT A

FORM OF ADDENDUM

          Reference is made to the Credit Agreement, dated as of May 19, 2005 (as amended, supplemented
or otherwise modified from time to time, the “Credit Agreement”), among Carmike Cinemas,
Inc., a Delaware corporation (the “Borrower”), the banks, financial institutions and other
entities from time to time parties thereto, Bear, Stearns & Co. Inc., as sole lead arranger and
sole bookrunner, Wells Fargo Foothill, Inc., as Documentation Agent, and Bear Stearns Corporate
Lending Inc., as Administrative Agent. Unless otherwise defined herein, terms defined in the
Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

          Upon execution and delivery of this Addendum by the parties hereto as provided in Section
11.17 of the Credit Agreement, the undersigned hereby becomes a Lender thereunder having the
Commitments set forth in Schedule 1 hereto, effective as of the Closing Date.

          THIS ADDENDUM SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK.

          This Addendum may be executed by one or more of the parties hereto on any number of separate
counterparts, and all of said counterparts taken together shall be deemed to constitute one and the
same instrument. Delivery of an executed signature page hereof by facsimile transmission shall be
effective as delivery of a manually executed counterpart hereof.

          IN WITNESS WHEREOF, the parties hereto have caused this Addendum to be duly executed and
delivered by their proper and duly authorized officers as of this ___day of ___, 2005.

	 	 	 	 	 
	 	Name of Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Accepted and agreed:

CARMIKE CINEMAS, INC.

	 	 	 	 	 
	By:  	
 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

 

 

2

BEAR STEARNS CORPORATE LENDING INC., as

Administrative Agent

	 	 	 	 	 
	By:  	
 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

 

 

Schedule 1

COMMITMENTS AND NOTICE ADDRESS

	 	 	 	 	 	 	 
	1.

	 	Name of Lender:
	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Notice Address:
	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	Attention:
	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Telephone:
	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Facsimile:
	 	 	 	 
	 
	 	 	 	 	 	 
	2.	 	Revolving Commitment:	 	 
	 
	 	 	 	 	 	 
	3.	 	Initial Term Commitment:	 	 
	 
	 	 	 	 	 	 
	4.	 	Delayed-Draw Term Commitment:	 	 

 

 

EXHIBIT B

FORM OF

ASSIGNMENT AND ASSUMPTION

          Reference is made to the Credit Agreement, dated as of May 19, 2005 (as amended, supplemented
or otherwise modified from time to time, the “Credit Agreement”), among Carmike Cinemas,
Inc., a Delaware corporation (the “Borrower”), the several banks, financial institutions
and other entities from time to time parties to the Credit Agreement (the “Lenders”), Bear,
Stearns & Co. Inc., as sole lead arranger and sole bookrunner, Wells Fargo Foothill, Inc., as
Documentation Agent, and Bear Stearns Corporate Lending Inc., as administrative agent for the
Lenders (in such capacity, the “Administrative Agent”). Unless otherwise defined herein,
terms defined in the Credit Agreement and used herein shall have the meanings given to them in the
Credit Agreement.

          1. The Assignor identified on Schedule l hereto (the “Assignor”) and the Assignee
identified on Schedule l hereto (the “Assignee”) agree as follows:

          2. The Assignor hereby irrevocably sells and assigns to the Assignee without recourse to the
Assignor, and the Assignee hereby irrevocably purchases and assumes from the Assignor without
recourse to the Assignor, as of the Effective Date (as defined below), the interest described in
Schedule 1 hereto (the “Assigned Interest”) in and to the Assignor’s rights and obligations
under the Credit Agreement with respect to those credit facilities contained in the Credit
Agreement as are set forth on Schedule 1 hereto (individually, an “Assigned Facility”;
collectively, the “Assigned Facilities”), in a principal amount for each Assigned Facility
as set forth on Schedule 1 hereto.

          3. The Assignor (a) makes no representation or warranty and assumes no responsibility with
respect to any statements, warranties or representations made in or in connection with the Credit
Agreement or with respect to the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Credit Agreement, any other Loan Document or any other instrument or
document furnished pursuant thereto, other than that the Assignor has not created any adverse claim
upon the interest being assigned by it hereunder and that such interest is free and clear of any
such adverse claim; (b) makes no representation or warranty and assumes no responsibility with
respect to the financial condition of the Borrower, any of its Subsidiaries or any other obligor or
the performance or observance by the Borrower, any of its Subsidiaries or any other obligor of any
of their respective obligations under the Credit Agreement or any other Loan Document or any other
instrument or document furnished pursuant hereto or thereto; and (c) attaches any Notes held by it
evidencing the Assigned Facilities and (i) requests that the Administrative Agent, upon request by
the Assignee, exchange the attached Notes for a new Note or Notes payable to the Assignee and (ii)
if the Assignor has retained any interest in the Assigned Facility, requests that the
Administrative Agent exchange the attached Notes for a new Note or Notes payable to the Assignor,
in each case in amounts which reflect the assignment being made hereby (and after giving effect to
any other assignments which have become effective on the Effective Date).

 

 

 2 

          4. The Assignee (a) represents and warrants that it is legally authorized to enter into this
Assignment and Assumption; (b) confirms that it has received a copy of the Credit Agreement,
together with copies of the financial statements delivered pursuant to Section 5.1 thereof and such
other documents and information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and Assumption; (c) agrees that it will, independently and
without reliance upon the Assignor, the Agents or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Credit Agreement, the other Loan Documents or any other
instrument or document furnished pursuant hereto or thereto; (d) appoints and authorizes the Agents
to take such action as agent on its behalf and to exercise such powers and discretion under the
Credit Agreement, the other Loan Documents or any other instrument or document furnished pursuant
hereto or thereto as are delegated to the Agents by the terms thereof, together with such powers as
are incidental thereto; and (e) agrees that it will be bound by the provisions of the Credit
Agreement and will perform in accordance with its terms all the obligations which by the terms of
the Credit Agreement are required to be performed by it as a Lender including, if it is organized
under the laws of a jurisdiction outside the United States, its obligations pursuant to Section
4.10 of the Credit Agreement.

          5. The effective date of this Assignment and Assumption shall be the Effective Date of
Assignment described in Schedule 1 hereto (the “Effective Date”). Following the execution
of this Assignment and Assumption, it will be delivered to the Administrative Agent for acceptance
by it and recording by the Administrative Agent pursuant to the Credit Agreement, effective as of
the Effective Date (which shall not, unless otherwise agreed to by the Administrative Agent, be
earlier than five Business Days after the date of such acceptance and recording by the
Administrative Agent).

          6. Upon such acceptance and recording, from and after the Effective Date, the Administrative
Agent shall make all payments in respect of the Assigned Interest (including payments of principal,
interest, fees and other amounts) to the Assignor for amounts which have accrued to the Effective
Date and to the Assignee for amounts which have accrued subsequent to the Effective Date.

          7. From and after the Effective Date, (a) the Assignee shall be a party to the Credit
Agreement and, to the extent provided in this Assignment and Assumption, have the rights and
obligations of a Lender thereunder and under the other Loan Documents and shall be bound by the
provisions thereof and (b) the Assignor shall, to the extent provided in this Assignment and
Assumption, relinquish its rights and be released from its obligations under the Credit Agreement.

          This Assignment and Assumption shall be governed by and construed in accordance with the laws
of the State of New York.

          IN WITNESS WHEREOF, the parties hereto have caused this Assignment and Assumption to be executed as
of the date first above written by their respective duly authorized officers on Schedule 1
hereto.

 

 

Schedule 1

to Assignment and Assumption

Name of Assignor:                                                             

Name of Assignee:                                                             

Effective Date of Assignment:                              , 20   

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Commitment	 
	Credit	 	Principal	 	 	Percentage	 
	Facility Assigned	 	Amount Assigned	 	 	Assigned1	 
	_____________________________________
	 	$	____________	 	 	 	___._______	%

	 	 	 	 	 	 	 
	[NAME OF ASSIGNEE]	 	[NAME OF ASSIGNOR]
	 
	 	 	 	 	 	 
	By:

	 	 
	 	By:
	 	 
	

	 	Title:
	 	 	 	Title:
	 
	 	 	 	 	 	 
	Accepted:	 	Consented To:
	 
	 	 	 	 	 	 
	BEAR STEARNS CORPORATE
LENDING 
     INC.,
as Administrative Agent	 	CARMIKE CINEMAS, INC.,2

     as Borrower
	 
	 	 	 	 	 	 
	By:

	 	 
	 	By:
	 	 
	

	 	Title:
	 	 	 	Title:
	 
	 	 	 	 	 	 
	 	 	 	 	BEAR STEARNS CORPORATE
LENDING
      INC., as
Administrative Agent
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	 
	

	 	 	 	Title:	 	 

	1	 	Calculate the Commitment Percentage that is
assigned to at least 15 decimal places and show as a percentage of the
aggregate commitments of all Lenders.
	 
	2	 	The Borrower’s consent may not be required.
Typically, the Credit Agreement provides that the consent of the Borrower is
required unless the assignee already is a Lender under the Credit Agreement.
Check the Credit Agreement to determine what is needed.

 

 

EXHIBIT C

FORM OF COMPLIANCE CERTIFICATE

          This Compliance Certificate is delivered to you [pursuant to Section 7.2(b)(i) of the Credit
Agreement][in connection with the consummation of a Permitted Acquisition under the Credit
Agreement], dated as of May 19, 2005, as amended, supplemented or modified from time to time (the
“Credit Agreement”), among Carmike Cinemas, Inc., a Delaware corporation (the
“Borrower”), the several banks, financial institutions and other entities from time to time
parties thereto (the “Lenders”), Bear, Stearns & Co. Inc., as sole lead arranger and sole
bookrunner (in such capacity, the “Arranger”), Wells Fargo Foothill, Inc., as documentation
agent (in such capacity, the “Documentation Agent”), and Bear Stearns Corporate Lending
Inc., as administrative agent (in such capacity, the “Administrative Agent”). Terms
defined in the Credit Agreement and not otherwise defined herein are used herein with the meanings
so defined.

          1. I am the duly elected, qualified and acting [Chief Financial Officer][Controller] of the
Borrower.

          2. I have reviewed and am familiar with the contents of this Certificate.

          3. I have reviewed the terms of the Credit Agreement and the Loan Documents and have made or
caused to be made under my supervision, a review in reasonable detail of the transactions and
condition of the Borrower and its consolidated Subsidiaries during the accounting period covered by
the financial statements attached hereto as Attachment 1 (the “Financial
Statements”). Such review did not disclose the existence during or at the end of the
accounting period covered by the Financial Statements, and I have no knowledge of the existence, as
of the date of this Certificate, of any condition or event which constitutes a Default or Event of
Default [, except as set forth below].

          4. Attached hereto as Attachment 2 are the computations showing [pro forma] compliance
by the Group Members with the covenants set forth in Section 8.1 of the Credit Agreement.

          IN WITNESS WHEREOF, I execute this Certificate this ___day of ___, 20___.

	 	 	 	 	 
	 	CARMIKE CINEMAS, INC.

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 

 

 

Attachment 1

to

Exhibit C

[Financial Statements]

 

 

Attachment 2

to

Exhibit C

     The information described herein is as of _________ ___, 20___, and pertains to the period from
_________ ___, 20___, to _________ ___, 20___.

[Set forth Covenant Calculations]

[Set forth information and calculations for determining Applicable Margin for Revolving Loans]

 

 

EXHIBIT D

GUARANTEE AND COLLATERAL AGREEMENT

made by

CARMIKE CINEMAS, INC.

and certain of its Subsidiaries

in favor of

BEAR STEARNS CORPORATE LENDING INC.,

as Administrative Agent

Dated as of May 19, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 1. DEFINED TERMS	 	 	1	 
	1.1.
	 	Definitions	 	 	1	 
	1.2.
	 	Other Definitional Provisions	 	 	5	 
	 
	 	 	 	 	 	 
	SECTION 2. GUARANTEE	 	 	5	 
	2.1.
	 	Guarantee	 	 	5	 
	2.2.
	 	Right of Contribution	 	 	6	 
	2.3.
	 	No Subrogation	 	 	6	 
	2.4.
	 	Amendments, etc. with respect to the Borrower Obligations	 	 	7	 
	2.5.
	 	Guarantee Absolute and Unconditional	 	 	7	 
	2.6.
	 	Reinstatement	 	 	8	 
	2.7.
	 	Payments	 	 	8	 
	 
	 	 	 	 	 	 
	SECTION 3. GRANT OF SECURITY INTEREST	 	 	8	 
	 
	 	 	 	 	 	 
	SECTION 4. REPRESENTATIONS AND WARRANTIES	 	 	9	 
	4.1.
	 	Representations in Credit Agreement	 	 	9	 
	4.2.
	 	Title; No Other Liens	 	 	10	 
	4.3.
	 	Perfected First Priority Liens	 	 	10	 
	4.4.
	 	Jurisdiction of Organization; Chief Executive Office	 	 	10	 
	4.5.
	 	Inventory and Equipment	 	 	11	 
	4.6.
	 	Farm Products	 	 	11	 
	4.7.
	 	Investment Property	 	 	11	 
	4.8.
	 	Receivables	 	 	11	 
	4.9.
	 	Contracts	 	 	11	 
	4.10.
	 	Intellectual Property	 	 	12	 
	4.11.
	 	Commercial Tort Claims	 	 	13	 
	 
	 	 	 	 	 	 
	SECTION 5. COVENANTS	 	 	13	 
	5.1.
	 	Covenants in Credit Agreement	 	 	13	 
	5.2.
	 	Delivery of Instruments, Certificated Securities and Chattel Paper	 	 	13	 
	5.3.
	 	Maintenance of Insurance	 	 	13	 
	5.4.
	 	Payment of Obligations	 	 	14	 
	5.5.
	 	Maintenance of Perfected Security Interest; Further Documentation	 	 	14	 
	5.6.
	 	Changes in Name, etc.	 	 	14	 
	5.7.
	 	Notices	 	 	15	 
	5.8.
	 	Investment Property	 	 	15	 
	5.9.
	 	Contracts	 	 	16	 
	5.10.
	 	Intellectual Property	 	 	16	 
	5.11.
	 	Commercial Tort Claims	 	 	18	 
	5.12.
	 	Aircraft	 	 	18	 

-i-

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 6. REMEDIAL PROVISIONS	 	 	18	 
	6.1.
	 	Certain Matters Relating to Receivables	 	 	18	 
	6.2.
	 	Communications with Obligors; Grantors Remain Liable	 	 	19	 
	6.3.
	 	Pledged Stock	 	 	19	 
	6.4.
	 	Proceeds to be Turned Over to Administrative Agent	 	 	20	 
	6.5.
	 	Application of Proceeds	 	 	20	 
	6.6.
	 	Code and Other Remedies	 	 	21	 
	6.7.
	 	Registration Rights	 	 	22	 
	6.8.
	 	Waiver; Deficiency	 	 	23	 
	 
	 	 	 	 	 	 
	SECTION 7. THE ADMINISTRATIVE AGENT	 	 	23	 
	7.1.
	 	Administrative Agent’s Appointment as Attorney-in-Fact, etc.	 	 	23	 
	7.2.
	 	Duty of Administrative Agent	 	 	25	 
	7.3.
	 	Execution of Financing Statements	 	 	25	 
	7.4.
	 	Authority of Administrative Agent	 	 	25	 
	 
	 	 	 	 	 	 
	SECTION 8. MISCELLANEOUS	 	 	25	 
	8.1.
	 	Amendments in Writing	 	 	25	 
	8.2.
	 	Notices	 	 	25	 
	8.3.
	 	No Waiver by Course of Conduct; Cumulative Remedies	 	 	26	 
	8.4.
	 	Enforcement Expenses; Indemnification	 	 	26	 
	8.5.
	 	Successors and Assigns	 	 	26	 
	8.6.
	 	Set-Off	 	 	26	 
	8.7.
	 	Counterparts	 	 	27	 
	8.8.
	 	Severability	 	 	27	 
	8.9.
	 	Section Headings	 	 	27	 
	8.10.
	 	Integration	 	 	27	 
	8.11.
	 	GOVERNING LAW	 	 	27	 
	8.12.
	 	Submission To Jurisdiction; Waivers	 	 	27	 
	8.13.
	 	Acknowledgements	 	 	28	 
	8.14.
	 	Additional Grantors	 	 	28	 
	8.15.
	 	Releases	 	 	28	 
	8.16.
	 	WAIVER OF JURY TRIAL	 	 	29	 

-ii-

 

SCHEDULES

	 	 	 
	Schedule 1

	 	Notice Addresses
	Schedule 2

	 	Investment Property
	Schedule 3

	 	Perfection Matters
	Schedule 4

	 	Jurisdictions of Organization and Chief Executive Offices
	Schedule 5

	 	Inventory and Equipment Locations
	Schedule 6

	 	Intellectual Property
	Schedule 7

	 	Contracts
	Schedule 8

	 	Existing Prior Liens

ANNEXES

	 	 	 
	Annex 1

	 	Form of Assumption Agreement
	Annex 2

	 	Form of Acknowledgement and Consent

-iii-

 

          GUARANTEE AND COLLATERAL AGREEMENT, dated as of May 19, 2005, made by each of the
signatories hereto (together with any other entity that may become a party hereto as provided
herein, the “Grantors”), in favor of BEAR STEARNS CORPORATE LENDING INC., as Administrative
Agent (in such capacity, the “Administrative Agent”) for the banks, financial institutions
and other entities (the “Lenders”) from time to time parties to the Credit Agreement, dated
as of May 19, 2005 (as amended, supplemented or otherwise modified from time to time, the
“Credit Agreement”), among Carmike Cinemas, Inc., a Delaware corporation (the
“Borrower”), the Lenders, Bear, Stearns & Co. Inc., as sole lead arranger and sole
bookrunner (in such capacity, the “Arranger”), Wells Fargo Foothill, Inc., as documentation
agent (in such capacity, the “Documentation Agent”), and the Administrative Agent.

W I T N E S S E T H:

          WHEREAS, pursuant to the Credit Agreement, the Lenders have severally agreed to make
extensions of credit to the Borrower upon the terms and subject to the conditions set forth
therein;

          WHEREAS, the Borrower is a member of an affiliated group of companies that includes each other
Grantor;

          WHEREAS, the proceeds of the extensions of credit under the Credit Agreement will be used in
part to enable the Borrower to make valuable transfers to one or more of the other Grantors in
connection with the operation of their respective businesses;

          WHEREAS, the Borrower and the other Grantors are engaged in related businesses, and each
Grantor will derive substantial direct and indirect benefit from the making of the extensions of
credit under the Credit Agreement; and

          WHEREAS, it is a condition precedent to the obligation of the Lenders to make their respective
extensions of credit to the Borrower under the Credit Agreement that the Grantors shall have
executed and delivered this Agreement to the Administrative Agent for the ratable benefit of the
Lenders;

          NOW, THEREFORE, in consideration of the premises and to induce the Agents and the Lenders to
enter into the Credit Agreement and to induce the Lenders to make their respective extensions of
credit to the Borrower thereunder, each Grantor hereby agrees with the Administrative Agent, for
the ratable benefit of the Agents and the Lenders, as follows:

SECTION 1. DEFINED TERMS

     1.1. Definitions. (a) Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit Agreement, and the
following terms which are defined in the Uniform Commercial Code in effect in the State of New York
on the date hereof are used herein as so defined: Accounts, Certificated Security, Chattel Paper,
Commercial Tort Claims, Documents, Equipment, Farm Products, General Intangibles, Goods,
Instruments, Inventory, Letter-of-Credit Rights and Supporting Obligations.

          (b) The following terms shall have the following meanings:

 

 

2

          “Agreement”: this Guarantee and Collateral Agreement, as the same may be amended,
supplemented or otherwise modified from time to time.

          “Borrower Credit Agreement Obligations”: the collective reference to the unpaid
principal of and interest on the Loans and Reimbursement Obligations and all other obligations and
liabilities of the Borrower (including, without limitation, interest accruing at the then
applicable rate provided in the Credit Agreement after the maturity of the Loans and Reimbursement
Obligations and interest accruing at the then applicable rate provided in the Credit Agreement
after the filing of any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding, relating to the Borrower, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding) to any Agent or any Lender,
whether direct or indirect, absolute or contingent, due or to become due, or now existing or
hereafter incurred, which may arise under, out of, or in connection with, the Credit Agreement,
this Agreement, the other Loan Documents, any Letter of Credit or any other document made,
delivered or given in connection therewith, in each case whether on account of principal, interest,
reimbursement obligations, fees, indemnities, costs, expenses or otherwise (including, without
limitation, all fees and disbursements of counsel to the Agents or to the Lenders that are required
to be paid by the Borrower pursuant to the terms of any of the foregoing agreements).

          “Borrower Hedge Agreement Obligations”: the collective reference to all obligations
and liabilities of the Borrower (including, without limitation, interest accruing at the then
applicable rate provided in any Specified Hedge Agreement after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to
the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such
proceeding) to any Lender or any affiliate of any Lender, whether direct or indirect, absolute or
contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out
of, or in connection with, any Specified Hedge Agreement or any other document made, delivered or
given in connection therewith, in each case whether on account of principal, interest,
reimbursement obligations, fees, indemnities, costs, expenses or otherwise (including, without
limitation, all fees and disbursements of counsel to the relevant Lender or affiliate thereof that
are required to be paid by the Borrower pursuant to the terms of any Specified Hedge Agreement).

          “Borrower Obligations”: the collective reference to (i) the Borrower Credit Agreement
Obligations, (ii) the Borrower Hedge Agreement Obligations, but only to the extent that, and only
so long as, the Borrower Credit Agreement Obligations are secured and guaranteed pursuant hereto,
and (iii) all other obligations and liabilities of the Borrower, whether direct or indirect,

absolute or contingent, due or to become due, or now existing or hereafter incurred, which may
arise under, out of, or in connection with, this Agreement (including, without limitation, all fees
and disbursements of counsel to the Agents or to the Lenders that are required to be paid by the
Borrower pursuant to the terms of this Agreement).

          “Collateral”: as defined in Section 3.

          “Collateral Account”: any collateral account established by the Administrative Agent
as provided in Section 6.1 or 6.4.

 

 

3

          “Contracts”: the contracts and agreements listed in Schedule 7, as the same
may be amended, supplemented or otherwise modified from time to time, including, without
limitation, (i) all rights of any Grantor to receive moneys due and to become due to it thereunder
or in connection therewith, (ii) all rights of any Grantor to damages arising thereunder and (iii)
all rights of any Grantor to perform and to exercise all remedies thereunder.

          “Copyrights”: (i) all copyrights arising under the laws of the United States, any
other country or any political subdivision thereof, whether registered or unregistered and whether
published or unpublished (including, without limitation, those listed in Schedule 6), all
registrations and recordings thereof, and all applications in connection therewith, including,
without limitation, all registrations, recordings and applications in the United States Copyright
Office, and (ii) the right to obtain all renewals thereof.

          “Copyright Licenses”: any written agreement naming any Grantor as licensor or
licensee (including, without limitation, those listed in Schedule 6), granting any right
under any Copyright, including, without limitation, the grant of rights to manufacture, distribute,
exploit and sell materials derived from any Copyright.

          “Deposit Account”: as defined in the Uniform Commercial Code of any applicable
jurisdiction and, in any event, including, without limitation, any demand, time, savings, passbook
or like account maintained with a depositary institution.

          “Foreign Subsidiary”: any Subsidiary organized under the laws of any jurisdiction
outside the United States of America.

          “Foreign Subsidiary Voting Stock”: the voting Capital Stock of any Foreign
Subsidiary.

          “Guarantor Obligations”: with respect to any Guarantor, all obligations and
liabilities of such Guarantor which may arise under or in connection with this Agreement
(including, without limitation, Section 2) or any other Loan Document to which such Guarantor is a
party, in each case whether on account of guarantee obligations, reimbursement obligations, fees,
indemnities, costs, expenses or otherwise (including, without limitation, all fees and
disbursements of counsel to the Agents or to the Lenders that are required to be paid by such
Guarantor pursuant to the terms of this Agreement or any other Loan Document).

          “Guarantors”: the collective reference to each Grantor other than the Borrower.

          “Intellectual Property”: the collective reference to all rights, priorities and
privileges relating to intellectual property, whether arising under United States, multinational or
foreign laws or otherwise, including, without limitation, the Copyrights, the Copyright Licenses,
the Patents, the Patent Licenses, the Trademarks and the Trademark Licenses, and all rights to sue
at law or in equity for any infringement or other impairment thereof, including the right to
receive all proceeds and damages therefrom.

          “Intercompany Note”: any promissory note evidencing loans made by any Grantor to any
Group Member.

 

 

4

          “Investment Property”: the collective reference to (i) all “investment property” as
such term is defined in Section 9-102(a)(49) of the New York UCC (other than any Foreign Subsidiary
Voting Stock excluded from the definition of “Pledged Stock”) and (ii) whether or not constituting
“investment property” as so defined, all Pledged Notes and all Pledged Stock.

          “Issuers”: the collective reference to each issuer of any Investment Property.

          “New York UCC”: the Uniform Commercial Code as from time to time in effect in the
State of New York.

          “Obligations”: (i) in the case of the Borrower, the Borrower Obligations, and (ii) in
the case of each Guarantor, its Guarantor Obligations.

          “Patents”: (i) all letters patent of the United States, any other country or any
political subdivision thereof, all reissues and extensions thereof and all goodwill associated
therewith, including, without limitation, any of the foregoing referred to in Schedule 6,
(ii) all applications for letters patent of the United States or any other country and all
divisions, continuations and continuations-in-part thereof, including, without limitation, any of
the foregoing referred to in Schedule 6, and (iii) all rights to obtain any reissues or
extensions of the foregoing.

          “Patent License”: all agreements, whether written or oral, providing for the grant by
or to any Grantor of any right to manufacture, use or sell any invention covered in whole or in
part by a Patent, including, without limitation, any of the foregoing referred to in Schedule
6.

          “Pledged Notes”: all promissory notes listed on Schedule 2, all Intercompany
Notes at any time issued to any Grantor and all other promissory notes issued to or held by any
Grantor (other than promissory notes issued in connection with extensions of trade credit by any
Grantor in the ordinary course of business).

          “Pledged Stock”: the shares of Capital Stock listed on Schedule 2, together
with any other shares, stock certificates, options, interests or rights of any nature whatsoever in
respect of the Capital Stock of any Person that may be issued or granted to, or held by, any
Grantor while this Agreement is in effect; provided that (i) in no event shall more than
65% of the total outstanding Foreign Subsidiary Voting Stock of any Foreign Subsidiary be required
to be pledged hereunder and (ii) in no event shall the 24 shares of Capital Stock of Loews
Corporation or the one share of Capital Stock of each of AMC Entertainment Inc., The Marcus
Corporation, The Neiman Marcus Group, Inc. and Trans-Lux Corporation owned by the Borrower on the
Closing Date be deemed to be Pledged Stock hereunder.

          “Proceeds”: all “proceeds” as such term is defined in Section 9-102(a)(64) of the New
York UCC on the date hereof and, in any event, shall include, without limitation, all dividends or
other income from the Investment Property, collections thereon or distributions or payments with
respect thereto.

          “Receivable”: any right to payment for goods sold or leased or for services rendered,
whether or not such right is evidenced by an Instrument or Chattel Paper and whether or not it has
been earned by performance (including, without limitation, any Account).

 

 

5

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

          “Trademarks”: (i) all trademarks, trade names, corporate names, company names,
business names, fictitious business names, trade styles, service marks, logos and other source or
business identifiers, and all goodwill associated therewith, now existing or hereafter adopted or
acquired, all registrations and recordings thereof, and all applications in connection therewith,
whether in the United States Patent and Trademark Office or in any similar office or agency of the
United States, any State thereof or any other country or any political subdivision thereof, or
otherwise, and all common-law rights related thereto, including, without limitation, any of the
foregoing referred to in Schedule 6, and (ii) the right to obtain all renewals thereof.

          “Trademark License”: any agreement, whether written or oral, providing for the grant
by or to any Grantor of any right to use any Trademark, including, without limitation, any of the
foregoing referred to in Schedule 6.

          “Vehicles”: all cars, trucks, tractors, trailers, vans and other motor vehicles and
automotive equipment covered by a certificate of title law of any state and all tires and other
appurtenances to any of the foregoing.

     1.2. Other Definitional Provisions. (a) The words “hereof,” “herein”, “hereto” and
“hereunder” and words of similar import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement, and Section and Schedule
references are to this Agreement unless otherwise specified.(a) The meanings given to terms defined
herein shall be equally applicable to both the singular and plural forms of such terms.

          (c) Where the context requires, terms relating to the Collateral or any part thereof, when
used in relation to a Grantor, shall refer to such Grantor’s Collateral or the relevant part
thereof.

          (d) Where the context requires, any affiliate of a Lender which is party to a Specified Hedge
Agreement shall be deemed to be a “Lender” for purposes of this Agreement and such affiliate shall
only be required to be an affiliate of a Lender at the time the relevant Hedge Agreement is entered
into in order for such Hedge Agreement to be eligible to be designated as a “Specified Hedge
Agreement”.

SECTION 2. GUARANTEE

     2.1. Guarantee. (a) Each of the Guarantors hereby, jointly and severally, unconditionally and irrevocably,
guarantees to the Administrative Agent, for the ratable benefit of the Agents and the Lenders and
their respective successors, indorsees, transferees and assigns, the prompt and complete payment
and performance by the Borrower when due (whether at the stated maturity, by acceleration or
otherwise) of the Borrower Obligations.

          (b) Anything herein or in any other Loan Document to the contrary notwithstanding, the maximum
liability of each Guarantor hereunder and under the other Loan Documents shall in no event exceed
the amount which can be guaranteed by such Guarantor

 

 

6

under applicable federal and state laws
relating to the insolvency of debtors (after giving effect to the right of contribution established
in Section 2.2).

          (c) Each Guarantor agrees that the Borrower Obligations may at any time and from time to time
exceed the amount of the liability of such Guarantor hereunder without impairing the guarantee
contained in this Section 2 or affecting the rights and remedies of any Agent or any Lender
hereunder.

          (d) The guarantee contained in this Section 2 shall remain in full force and effect until all
the Borrower Obligations and the obligations of each Guarantor under the guarantee contained in
this Section 2 shall have been satisfied by payment in full, no Letter of Credit shall be
outstanding and the Commitments shall be terminated, notwithstanding that from time to time during
the term of the Credit Agreement the Borrower may be free from any Borrower Obligations.

          (e) No payment made by the Borrower, any of the Guarantors, any other guarantor or any other
Person or received or collected by any Agent or any Lender from the Borrower, any of the
Guarantors, any other guarantor or any other Person by virtue of any action or proceeding or any
set-off or appropriation or application at any time or from time to time in reduction of or in
payment of the Borrower Obligations shall be deemed to modify, reduce, release or otherwise affect
the liability of any Guarantor hereunder which shall, notwithstanding any such payment (other than
any payment made by such Guarantor in respect of the Borrower Obligations or any payment received
or collected from such Guarantor in respect of the Borrower Obligations), remain liable for the
Borrower Obligations up to the maximum liability of such Guarantor hereunder until the Borrower
Obligations are paid in full, no Letter of Credit shall be outstanding and the Commitments are
terminated.

     2.2. Right of Contribution. Each Guarantor hereby agrees that to the extent that a
Guarantor shall have paid more than its proportionate share of any payment made hereunder, such
Guarantor shall be entitled to seek and receive contribution from and against any other Guarantor
hereunder which has not paid its proportionate share of such payment. Each Guarantor’s right of
contribution shall be subject to the terms and conditions of Section 2.3. The provisions of this
Section 2.2 shall in no respect limit the obligations and liabilities of any Guarantor to the
Agents and the Lenders, and each Guarantor shall remain liable to the Agents and the Lenders for
the full amount guaranteed by such Guarantor hereunder.

     2.3. No Subrogation. Notwithstanding any payment made by any Guarantor hereunder or any
set-off or application of funds of any Guarantor by any Agent or any Lender, no Guarantor shall be
entitled to be subrogated to any of the rights of any Agent or any Lender against the Borrower or
any other Guarantor or any collateral security or guarantee or right of offset held by any Agent or
any Lender for the payment of the Borrower Obligations, nor shall any Guarantor seek or be entitled
to seek any contribution or reimbursement from the Borrower or any other Guarantor in respect of
payments made by such Guarantor hereunder, until all amounts owing to the Agents and the Lenders by
the Borrower on account of the Borrower Obligations are paid in full, no Letter of Credit shall be
outstanding and the Commitments are terminated. If any amount shall be paid to any Guarantor on
account of such subrogation rights at any time when all of the Borrower Obligations shall not have
been paid in full, such amount

 

 

7

shall be held by such Guarantor in trust for the Agents and the
Lenders, segregated from other funds of such Guarantor, and shall, forthwith upon receipt by such
Guarantor, be turned over to the Administrative Agent in the exact form received by such Guarantor
(duly indorsed by such Guarantor to the Administrative Agent, if required), to be applied against
the Borrower Obligations, whether matured or unmatured, in such order as the Administrative Agent
may determine.

     2.4. Amendments, etc. with respect to the Borrower Obligations. Each Guarantor shall
remain obligated hereunder notwithstanding that, without any reservation of rights against any
Guarantor and without notice to or further assent by any Guarantor, any demand for payment of any
of the Borrower Obligations made by any Agent or any Lender may be rescinded by such Agent or such
Lender and any of the Borrower Obligations continued, and the Borrower Obligations, or the
liability of any other Person upon or for any part thereof, or any collateral security or guarantee
therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be
renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by
any Agent or any Lender, and the Credit Agreement and the other Loan Documents and any other
documents executed and delivered in connection therewith may be amended, modified, supplemented or
terminated, in whole or in part, as the Administrative Agent (or the requisite Lenders or all
Lenders, as the case may be) may deem advisable from time to time, and any collateral security,
guarantee or right of offset at any time held by any Agent or any Lender for the payment of the
Borrower Obligations may be sold, exchanged, waived, surrendered or released. No Agent or Lender
shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as
security for the Borrower Obligations or for the guarantee contained in this Section 2 or any
property subject thereto.

     2.5. Guarantee Absolute and Unconditional. Each Guarantor waives any and all notice of the
creation, renewal, extension or accrual of any of the Borrower Obligations and notice of or proof
of reliance by any Agent or any Lender upon the guarantee contained in this Section 2 or acceptance
of the guarantee contained in this Section 2; the Borrower Obligations, and any of them, shall
conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended
or waived, in reliance upon the guarantee contained in this Section 2; and all dealings between the
Borrower and any of the Guarantors, on the one hand, and the Agents and the Lenders, on the other
hand, likewise shall
be conclusively presumed to have been had or consummated in reliance upon the guarantee contained
in this Section 2. Each Guarantor waives diligence, presentment, protest, demand for payment and
notice of default or nonpayment to or upon the Borrower or any of the Guarantors with respect to
the Borrower Obligations. Each Guarantor understands and agrees that the guarantee contained in
this Section 2 shall be construed as a continuing, absolute and unconditional guarantee of payment
without regard to (1) the validity or enforceability of the Credit Agreement or any other Loan
Document, any of the Borrower Obligations or any other collateral security therefor or guarantee or
right of offset with respect thereto at any time or from time to time held by any Agent or any
Lender, (2) any defense, set-off or counterclaim (other than a defense of payment or performance)
which may at any time be available to or be asserted by the Borrower or any other Person against
any Agent or any Lender, or (3) any other circumstance whatsoever (with or without notice to or
knowledge of the Borrower or such Guarantor) which constitutes, or might be construed to
constitute, an equitable or legal discharge of the Borrower for the Borrower Obligations, or of
such Guarantor under the guarantee contained in this Section 2, in bankruptcy

 

 

8

or in any other
instance. When making any demand hereunder or otherwise pursuing its rights and remedies hereunder
against any Guarantor, any Agent or any Lender may, but shall be under no obligation to, make a
similar demand on or otherwise pursue such rights and remedies as it may have against the Borrower,
any other Guarantor or any other Person or against any collateral security or guarantee for the
Borrower Obligations or any right of offset with respect thereto, and any failure by any Agent or
any Lender to make any such demand, to pursue such other rights or remedies or to collect any
payments from the Borrower, any other Guarantor or any other Person or to realize upon any such
collateral security or guarantee or to exercise any such right of offset, or any release of the
Borrower, any other Guarantor or any other Person or any such collateral security, guarantee or
right of offset, shall not relieve any Guarantor of any obligation or liability hereunder, and
shall not impair or affect the rights and remedies, whether express, implied or available as a
matter of law, of any Agent or any Lender against any Guarantor. For the purposes hereof “demand”
shall include the commencement and continuance of any legal proceedings.

     2.6. Reinstatement. The guarantee contained in this Section 2 shall continue to be
effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of
any of the Borrower Obligations is rescinded or must otherwise be restored or returned by any Agent
or any Lender upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the
Borrower or any Guarantor, or upon or as a result of the appointment of a receiver, intervenor or
conservator of, or trustee or similar officer for, the Borrower or any Guarantor or any substantial
part of its property, or otherwise, all as though such payments had not been made.

     2.7. Payments. Each Guarantor hereby guarantees that payments hereunder will be paid to
the Administrative Agent without set-off or counterclaim in Dollars at the Funding Office specified
in the Credit Agreement.

SECTION 3. GRANT OF SECURITY INTEREST

          Each Grantor hereby assigns and transfers to the Administrative Agent, and hereby grants to
the Administrative Agent, for the ratable benefit of the Agents and the Lenders (and any affiliates
of any Lender to which Borrower Hedge Agreement Obligations are owing), a security interest in, all
of the following property now owned or at any time hereafter acquired by such Grantor or in which
such Grantor now has or at any time in the future may acquire any right, title or interest
(collectively, the “Collateral”), as collateral security for the prompt and complete
payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of
such Grantor’s Obligation:

          (a) all Accounts;

          (b) all Chattel Paper;

          (c) all Contracts;

          (d) all Deposit Accounts;

          (e) all Documents (other than title documents with respect to Vehicles);

 

 

9

          (f) all Equipment (other than Vehicles);

          (g) all General Intangibles;

          (h) all Instruments;

          (i) all Intellectual Property;

          (j) all Inventory;

          (k) all Investment Property;

          (l) all Letter-of-Credit Rights;

          (m) all other property not otherwise described above above (except for any property
specifically excluded from any clause in this section above, and any property specifically excluded
from any defined term used in any clause of this section above);

          (n) all books and records pertaining to the Collateral; and

          (o) to the extent not otherwise included, all Proceeds, Supporting Obligations and products of
any and all of the foregoing and all collateral security and guarantees given by any Person with
respect to any of the foregoing;

provided, however, that notwithstanding any of the other provisions set forth in this
Section 3, this Agreement shall not constitute a grant of a security interest in any property to
the extent that such grant of a security interest is prohibited by any Requirements of Law of a
Governmental Authority, requires a consent not obtained of any Governmental Authority pursuant to
such
Requirement of Law or is prohibited by, or constitutes a breach or default under or results in the
termination of or requires any consent not obtained under, any contract, license, lease, mortgage,
deed to secure debt, deed of trust, security agreement or other agreement, instrument or other
document evidencing, giving rise to or encumbering such property or, in the case of any Investment
Property, Pledged Stock or Pledged Note, any applicable shareholder or similar agreement, except to
the extent that such Requirement of Law or the term in such contract, license, lease, mortgage,
deed to secure debt, deed of trust, security agreement or other agreement, instrument or other
document or shareholder or similar agreement providing for such prohibition, breach, default or
termination or requiring such consent is ineffective under applicable law.

SECTION 4. REPRESENTATIONS AND WARRANTIES

          To induce the Administrative Agent and the Lenders to enter into the Credit Agreement and to
induce the Lenders to make their respective extensions of credit to the Borrower thereunder, each
Grantor hereby represents and warrants to the Administrative Agent and each Lender that:

     4.1. Representations in Credit Agreement. In the case of each Guarantor, the
representations and warranties set forth in Section 5 of the Credit Agreement as they relate to

 

 

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such Guarantor or to the Loan Documents to which such Guarantor is a party, each of which is hereby
incorporated herein by reference, are true and correct, and each Agent and each Lender shall be
entitled to rely on each of them as if they were fully set forth herein, provided that each
reference in each such representation and warranty to the Borrower’s knowledge shall, for the
purposes of this Section 4.1, be deemed to be a reference to such Guarantor’s knowledge.

     4.2. Title; No Other Liens. Except for the security interest granted to the Administrative
Agent for the ratable benefit of the Agents and the Lenders pursuant to this Agreement and the
other Liens permitted to exist on the Collateral by the Credit Agreement and Liens which will be
terminated as of the Closing Date, such Grantor owns each item of the Collateral free and clear of
any and all Liens or claims of others. No financing statement or other public notice with respect
to all or any part of the Collateral is on file or of record in any public office, except such as
have been filed in favor of the Administrative Agent, for the ratable benefit of the Agents and the
Lenders, pursuant to this Agreement or as are permitted by the Credit Agreement, and financing
statements, mortgages, deeds of trust, deeds to secure debt and other documents and instruments
filed of record that evidence Liens that are being terminated in accordance with the requirements
of the Credit Agreement. For the avoidance of doubt, it is understood and agreed that any Grantor
may, as part of its business, grant licenses to third parties to use Intellectual Property owned or
developed by a Grantor. For purposes of this Agreement and the other Loan Documents, such
licensing activity shall not constitute a “Lien” on such Intellectual Property. Each of the
Administrative Agent and each Lender understands that any such licenses may be exclusive to the
applicable licensees, and such exclusivity provisions may limit the ability of the Administrative
Agent to
utilize, sell, lease or transfer the related Intellectual Property or otherwise realize value from
such Intellectual Property pursuant hereto.

     4.3. Perfected First Priority Liens. The security interests granted pursuant to this
Agreement upon completion of the filings and other actions specified on Schedule 3 (which, in the
case of all filings and other documents referred to on said Schedule, have been delivered to the
Administrative Agent in completed and duly executed form) will constitute valid perfected security
interests in favor of the Administrative Agent, for the ratable benefit of the Lenders, in all
Collateral in which a security interest can be perfected by making such filings or taking such
other actions described in Schedule 3, as collateral security for such Grantor’s Obligations,
enforceable in accordance with the terms hereof against all creditors of such Grantor and any
Persons purporting to purchase any Collateral from such Grantor and are prior to all other Liens on
the Collateral in existence on the date hereof except for (i) unrecorded Liens permitted by the
Credit Agreement which have priority over the Liens on the Collateral by operation of law, (ii)
Liens permitted to exist on the Collateral pursuant to the Credit Agreement and (iii) Liens
described on Schedule 8.

     4.4. Jurisdiction of Organization; Chief Executive Office. On the date hereof, such
Grantor’s jurisdiction of organization, identification number from the jurisdiction of organization
(if any), and the location of such Grantor’s chief executive office or sole place of business or
principal residence, as the case may be, are specified on Schedule 4. Such Grantor has furnished
to the Administrative Agent a certified charter, certificate of incorporation or other organization
document and long-form good standing certificate from its state of incorporation or other
organization as of a date which is recent to the date hereof.

 

 

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     4.5. Inventory and Equipment. On the date hereof, the Inventory and the Equipment (other
than mobile goods) are kept at the locations listed on Schedule 5.

     4.6. Farm Products. None of the Collateral constitutes, or is the Proceeds of, Farm
Products.

     4.7. Investment Property. (a) The shares of Pledged Stock pledged by such Grantor
hereunder constitute (i) all the issued and outstanding shares of all classes of the Capital Stock

of each Issuer owned by such Grantor or (ii) in the case of Foreign Subsidiary Voting Stock, 65% of
the outstanding Foreign Subsidiary Voting Stock of each relevant Issuer.

          (b) All the shares of the Pledged Stock have been duly and validly issued and are fully paid
and nonassessable.

          (c) Each of the Pledged Notes constitutes the legal, valid and binding obligation of the
obligor with respect thereto, enforceable in accordance with its terms, subject to
the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
other similar laws relating to or affecting creditors’ rights generally, general equitable
principles (whether considered in a proceeding in equity or at law) and an implied covenant of good
faith and fair dealing.

          (d) Such Grantor is the record and beneficial owner of, and has good and marketable title to,
the Investment Property pledged by it hereunder, free of any and all Liens or options in favor of,
or claims of, any other Person, except the security interest created by this Agreement.

     4.8. Receivables. (a) No amount payable to such Grantor under or in connection with any
Receivable is evidenced by any Instrument or Chattel Paper which has not been delivered to the
Administrative Agent, to the extent required by Section 5.2.

          (b) None of the obligors on any Receivables is a Governmental Authority.

          (c) The amounts represented by such Grantor to the Lenders from time to time as owing to such
Grantor in respect of the Receivables will at such times be accurate in all material respects.

     4.9. Contracts. (a) No consent of any party (other than such Grantor) to any Contract
(other than any such consent required to effectuate the assignment of such agreement to any third
party or to the Administrative Agent upon the exercise of the Administrative Agent’s rights
following an Event of Default) is required, or purports to be required, in connection with the
execution, delivery and performance of this Agreement, except as has been obtained.

          (b) Each Contract is in full force and effect and constitutes a valid and legally enforceable
obligation of the parties thereto, subject to the effects of bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’
rights generally, general equitable principles (whether considered in a proceeding in equity or at
law) and an implied covenant of good faith and fair dealing.

 

 

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          (c) No consent or authorization of, filing with or other act by or in respect of any
Governmental Authority is required in connection with the execution, delivery, performance,
validity or enforceability of any of the Contracts by any party thereto other than those which have
been duly obtained, made or performed, are in full force and effect and do not subject the scope of
any such Contract to any material adverse limitation, either specific or general in nature.

          (d) Neither such Grantor nor (to the best of such Grantor’s knowledge) any of the other
parties to the Contracts is in default in any material respect in the performance or observance of
any of the terms thereof.

          (e) The right, title and interest of such Grantor in, to and under the Contracts are not
subject to any defenses, offsets, counterclaims or claims.

          (f) Such Grantor has delivered to the Administrative Agent a complete and correct copy of each
Contract, including all amendments, supplements and other modifications thereto.

          (g) No amount payable to such Grantor under or in connection with any Contract is evidenced by
any Instrument or Chattel Paper which has not been delivered to the Administrative Agent, to the
extent required by Section 5.2.

          (h) None of the parties to any Contract is a Governmental Authority.

     4.10. Intellectual Property. (a) Schedule 6 lists all Intellectual Property owned by
such Grantor in its own name on the date hereof necessary for the conduct of its business in all
material respects as currently conducted.

          (b) On the date hereof, all Intellectual Property of such Grantor described on Schedule
6 is valid, subsisting, unexpired and enforceable, has not been abandoned and does not infringe
the intellectual property rights of any other Person.

          (c) Except as set forth in Schedule 6, on the date hereof, none of the Intellectual
Property necessary for the conduct of such Grantor’s business in all material respects as currently
conducted is the subject of any licensing or franchise agreement pursuant to which such Grantor is
the licensor or franchisor.

          (d) No holding, decision or judgment has been rendered by any Governmental Authority which
would limit, cancel or question the validity of, or such Grantor’s rights in, any Intellectual
Property in any respect that could reasonably be expected to have a Material Adverse Effect.

          (e) No action or proceeding is pending, or, to the knowledge of such Grantor, threatened, on
the date hereof (1) seeking to limit, cancel or question the validity of any Intellectual Property
necessary for the conduct of its business in all material respects as currently conducted or such
Grantor’s ownership interest therein, or (2) which, if adversely determined, would have a material
adverse effect on the value of any Intellectual Property necessary for the conduct of its business
in all material respects as currently conducted.

 

 

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     4.11. Commercial Tort Claims. On the date hereof, except to the extent listed in Section 3
above, no Grantor has rights in any Commercial Tort Claim with potential value in excess of
$250,000.

SECTION 5. COVENANTS

          Each Grantor covenants and agrees with the Agents and the Lenders that, from and after the
date of this Agreement until the Obligations shall have been paid in full, no Letter of Credit
shall be outstanding and the Commitments shall have terminated:

     5.1. Covenants in Credit Agreement. In the case of each Guarantor, such Guarantor shall
take, or shall refrain from taking, as the case may be, each action that is necessary to be taken
or not taken, as the case may be, so that no Default or Event of Default is caused by the failure
to take such action or to refrain from taking such action by such Guarantor or any of its
Subsidiaries.

     5.2. Delivery of Instruments, Certificated Securities and Chattel Paper. If any amount
payable under or in connection with any of the Collateral shall be or become evidenced by any
Instrument, Certificated Security or Chattel Paper, such Instrument, Certificated Security or
Chattel Paper shall be immediately delivered to the Administrative Agent, duly indorsed in a manner
satisfactory to the Administrative Agent, to be held as Collateral pursuant to this Agreement;
provided that the Grantors shall not be obligated to deliver to the Administrative Agent any
Instruments or Chattel Paper held by any Grantor at any time to the extent that the aggregate face
amount of all such Instruments, Certificated Securities and Chattel Paper held by all Grantors at
such time does not exceed $250,000.

     5.3. Maintenance of Insurance. (a) Such Grantor will maintain, with financially sound
and reputable companies, insurance policies (i) insuring the Inventory and Equipment against loss
by fire, explosion, theft and such other casualties as may be reasonably satisfactory to the
Administrative Agent and (ii) insuring such Grantor, the Administrative Agent and the Lenders
against liability for personal injury and property damage relating to such Inventory and Equipment,
such policies to be in such form and amounts (subject to reasonable self-insurance levels and
deductibles) and having such coverage as may be reasonably satisfactory to the Administrative Agent
and the Lenders.

          (b) All such insurance shall (i) provide that no cancellation, material reduction in amount or
material change in coverage thereof shall be effective until at least 30 days after receipt by the
Administrative Agent of written notice thereof, (ii) name the Administrative Agent as insured party
or loss payee and (iii) be reasonably satisfactory in all other respects to the Administrative
Agent.

          (c) The Borrower shall deliver to the Administrative Agent and the Lenders a report of a
reputable insurance broker with respect to such insurance substantially concurrently with the
delivery by the Borrower to the Administrative Agent of its audited financial statements for each
fiscal year and such supplemental reports with respect thereto as the Administrative Agent may from
time to time reasonably request.

 

 

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     5.4. Payment of Obligations. Such Grantor will pay and discharge or otherwise satisfy at
or before maturity or before they become delinquent, as the case may be, all taxes, assessments and
governmental charges or levies imposed upon the Collateral or in respect of income or profits
therefrom, as well as all material claims of any kind (including, without limitation, claims for
labor, materials and supplies) against or with respect to the Collateral, except that no such
charge need be paid if the amount or validity thereof is currently being contested in good faith by
appropriate proceedings,
reserves in conformity with GAAP with respect thereto have been provided on the books of such
Grantor and such proceedings could not reasonably be expected to result in the sale, forfeiture or
loss of any material portion of the Collateral or any interest therein.

     5.5. Maintenance of Perfected Security Interest; Further Documentation (a) Such Grantor
shall maintain the security interest created by this Agreement as a perfected security interest
having at least the priority described in Section 4.3 and shall defend such security interest
against the claims and demands of all Persons whomsoever, subject to the rights of such Grantor
under the Loan Documents to dispose of the Collateral.

          (b) Such Grantor will furnish to the Administrative Agent and the Lenders from time to time
statements and schedules further identifying and describing the assets and property of such Grantor
and such other reports in connection with the Collateral as the Administrative Agent may reasonably
request, all in reasonable detail.

          (c) At any time and from time to time, upon the written request of the Administrative Agent,
and at the sole expense of such Grantor, such Grantor will promptly and duly execute and deliver,
and have recorded, such further instruments and documents and take such further actions as the
Administrative Agent may reasonably request for the purpose of obtaining or preserving the full
benefits of this Agreement and of the rights and powers herein granted, including, without
limitation, (1) the filing of any financing or continuation statements under the Uniform Commercial
Code (or other similar laws) in effect in any appropriate jurisdiction with respect to the security
interests created hereby and (2) in the case of Investment Property in excess of $250,000, any
Deposit Account that constitutes such Grantor’s “concentration account” and Letter-of-Credit
Rights, taking any actions necessary to enable the Administrative Agent to obtain “control” (within
the meaning of the applicable Uniform Commercial Code) with respect thereto.

     5.6. Changes in Name, etc. Such Grantor will not, except upon 15 days’ prior written
notice to the Administrative Agent and delivery to the Administrative Agent of all additional
executed financing statements and other documents reasonably requested by the Administrative Agent
to maintain the validity, perfection and priority of the security interests provided for herein:

          (a) change its jurisdiction of organization from that referred to in Section 4.4; or

          (b) change its name, identity or corporate structure to such an extent that any financing
statement filed by the Administrative Agent in connection with this Agreement would become
misleading.

 

 

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     5.7. Notices. Such Grantor will advise the Administrative Agent and the Lenders promptly,
in reasonable detail, of:

          (a) any Lien (other than security interests created hereby or Liens permitted under the Credit
Agreement) on any of the Collateral which would adversely affect the ability of the Administrative
Agent to exercise any of its remedies hereunder; and

          (b) of the occurrence of any other event which could reasonably be expected to have a material
adverse effect on the aggregate value of the Collateral or on the security interests created
hereby.

     5.8. Investment Property. (a) If such Grantor shall become entitled to receive or shall
receive any stock certificate (including, without limitation, any certificate representing a stock
dividend or a distribution in connection with any reclassification, increase or reduction of
capital or any certificate issued in connection with any reorganization), option or rights in
respect of the Capital Stock of any Issuer, whether in addition to, in substitution of, as a
conversion of, or in exchange for, any shares of the Pledged Stock, or otherwise in respect
thereof, such Grantor shall accept the same as the agent of the Agents and the Lenders, hold the
same in trust for the Agents and the Lenders and deliver the same forthwith to the Administrative
Agent in the exact form received, duly indorsed by such Grantor to the Administrative Agent, if
required, together with an undated stock power covering such certificate duly executed in blank by
such Grantor, to be held by the Administrative Agent, subject to the terms hereof, as additional
collateral security for the Obligations. Any sums paid upon or in respect of the Investment
Property upon the liquidation or dissolution of any Issuer shall be paid over to the Administrative
Agent to be held by it hereunder as additional collateral security for the Obligations, and in case
any distribution of capital shall be made on or in respect of the Investment Property or any
property shall be distributed upon or with respect to the Investment Property pursuant to the
recapitalization or reclassification of the capital of any Issuer or pursuant to the reorganization
thereof, the property so distributed shall, unless otherwise subject to a perfected security
interest in favor of the Administrative Agent, be delivered to the Administrative Agent to be held
by it hereunder as additional collateral security for the Obligations. If any sums of money or
property so paid or distributed in respect of the Investment Property shall be received by such
Grantor, such Grantor shall, until such money or property is paid or delivered to the
Administrative Agent, hold such money or property in trust for the Agents and the Lenders,
segregated from other funds of such Grantor, as additional collateral security for the Obligations.
Notwithstanding the foregoing, the Grantors shall not be required to pay over to the
Administrative Agent or deliver to the Administrative Agent as Collateral any proceeds of any
liquidation or dissolution of any Issuer, or any distribution of capital or property in respect of
any Investment Property, to the extent that (i) such liquidation, dissolution, payment or
distribution is permitted by the Credit Agreement and (ii) the proceeds thereof are used or applied
in accordance with the terms of the Credit Agreement including any prepayment required thereby.

     (b) Without the prior written consent of the Administrative Agent, such Grantor will not (i)
vote to enable, or take any other action to permit, any Issuer to issue any stock or other equity
securities of any nature or to issue any other securities convertible into or granting the right to
purchase or exchange for any stock or other equity securities of any nature of any Issuer, (ii)
sell, assign, transfer, exchange, or otherwise dispose of, or grant any option

 

 

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with respect to, the
Investment Property or Proceeds thereof (except pursuant to a transaction
expressly permitted by the Credit Agreement), (iii) create, incur or permit to exist any Lien
or option in favor of, or any claim of any Person with respect to, any of the Investment Property
or Proceeds thereof, or any interest therein, except for the security interests created by this
Agreement or (iv) enter into any agreement or undertaking restricting the right or ability of such
Grantor or the Administrative Agent to sell, assign or transfer any of the Investment Property or
Proceeds thereof, except in each case as permitted under the terms of the Loan Documents.

          (c) In the case of each Grantor which is an Issuer, such Issuer agrees that (i) it will be
bound by the terms of this Agreement relating to the Investment Property issued by it and will
comply with such terms insofar as such terms are applicable to it, (ii) it will notify the
Administrative Agent promptly in writing of the occurrence of any of the events described in
Section 5.8(a) with respect to the Investment Property issued by it and (iii) the terms of Sections
6.3(c) and 6.7 shall apply to it, mutatis mutandis, with respect to all actions
that may be required of it pursuant to Section 6.3(c) or 6.7 with respect to the Investment
Property issued by it.

     5.9. Contracts. (a) Such Grantor will perform and comply in all material respects with
all its obligations under the Contracts.

          (b) Such Grantor will not amend, modify, terminate or waive any provision of any such Contract
in any manner which could reasonably be expected to materially adversely affect the value of such
Contract as Collateral.

          (c) Such Grantor will exercise promptly and diligently each and every material right which it
may have under each such Contract (other than any right of termination).

          (d) Such Grantor will deliver to the Administrative Agent a copy of each material demand,
notice or document received by it relating in any way to any Contract that questions the validity
or enforceability of such Contract.

     5.10. Intellectual Property. (a) Such Grantor (either itself or through licensees) will:
(i) continue to use each material Trademark on each and every trademark class of goods applicable
to its current line as reflected in its current catalogs, brochures and price lists in order to
maintain such Trademark in full force free from any claim of abandonment for non-use, (ii) maintain
as in the past the quality of products and services offered under such Trademark, (iii) use such
Trademark with the appropriate notice of registration and all other notices and legends required by
applicable Requirements of Law, (iv) not adopt or use any mark which is confusingly similar or a
colorable imitation of such Trademark unless the Administrative Agent, for the ratable benefit of
the Agents and the Lenders, shall obtain a perfected security interest in such mark pursuant to
this Agreement, and (v) not (and not permit any licensee or sublicensee thereof to) do any act or
knowingly omit to do any act whereby such Trademark may become invalidated or impaired in any way.

          (b) Such Grantor (either itself or through licensees) will not do any act, or omit to do any
act, whereby any material Patent may become forfeited, abandoned or dedicated to the public.

 

 

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          (c) Such Grantor (either itself or through licensees): (i) will employ each material Copyright
and (ii) will not (and will not permit any licensee or sublicensee thereof to) do any act or
knowingly omit to do any act whereby any material portion of the Copyrights may become invalidated
or otherwise impaired. Such Grantor will not (either itself or through licensees) do any act
whereby any material portion of the Copyrights may fall into the public domain.

          (d) Such Grantor (either itself or through licensees) will not do any act that knowingly uses
any material Intellectual Property to infringe the intellectual property rights of any other
Person.

          (e) Such Grantor will notify the Administrative Agent and the Lenders immediately if it knows
that any application or registration relating to any material Intellectual Property may become
forfeited, abandoned or dedicated to the public, or of any adverse determination or development
(including, without limitation, the institution of, or any such determination or development in,
any proceeding in the United States Patent and Trademark Office, the United States Copyright Office
or any court or tribunal in any country) regarding such Grantor’s ownership of, or the validity of,
any material Intellectual Property or such Grantor’s right to register the same or to own and
maintain the same.

          (f) Whenever such Grantor, either by itself or through any agent, employee, licensee or
designee, shall file an application for the registration of any Intellectual Property with the
United States Patent and Trademark Office, the United States Copyright Office or any similar office
or agency in any other country or any political subdivision thereof, such Grantor shall report such
filing to the Administrative Agent within 45 days after the last day of the fiscal quarter in which
such filing occurs. Upon request of the Administrative Agent, such Grantor shall execute and
deliver, and have recorded, any and all agreements, instruments, documents, and papers as the
Administrative Agent may request to evidence the Agents’ and the Lenders’ security interest in any
Copyright, Patent or Trademark and the goodwill and general intangibles of such Grantor relating
thereto or represented thereby.

          (g) Such Grantor will take all reasonable and necessary steps, including, without limitation,
in any proceeding before the United States Patent and Trademark Office, the United States Copyright
Office or any similar office or agency in any other country or any political subdivision thereof,
to maintain and pursue each application (and to obtain the relevant registration) and to maintain
each registration of the material Intellectual Property, including, without limitation, filing of
applications for renewal, affidavits of use and affidavits of incontestability.

          (h) If any Grantor has knowledge that any material Intellectual Property is infringed,
misappropriated or diluted by a third party, such Grantor shall (i) take such actions as such
Grantor shall reasonably deem appropriate under the circumstances to protect such Intellectual
Property and (ii) if such Intellectual Property is of material economic value, promptly
notify the Administrative Agent after it learns thereof and sue for infringement,
misappropriation or dilution, to seek injunctive relief where appropriate and to recover any and
all damages for such infringement, misappropriation or dilution.

 

 

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     5.11. Commercial Tort Claims. (a) If such Grantor shall obtain an interest in any
Commercial Tort Claim with a potential value in excess of $250,000, such Grantor shall within 30
days of obtaining such interest sign and deliver documentation acceptable to the Administrative
Agent granting a security interest under the terms and provisions of this Agreement in and to such
Commercial Tort Claim. Upon the filing of a financing statement covering such Commercial Tort
Claim against such Grantor in the jurisdiction specified in Schedule 3 hereto, the security
interest granted in such Commercial Tort Claim will constitute a valid perfected security interest
in favor of the Administrative Agent, for the ratable benefit of the Lenders, as collateral
security for such Grantor’s Obligations, enforceable in accordance with the terms hereof against
all creditors of such Grantor and any Persons purporting to purchase such Collateral from Grantor,
which security interest shall be prior to all other Liens on such Collateral except for unrecorded
liens permitted by the Credit Agreement which have priority over the Liens on such Collateral by
operation of law.

     5.12. Aircraft. Within 60 days of the Closing Date, the Administrative Agent shall have
received in respect of any aircraft owned by any Grantor security documents granting a Lien on such
aircraft to the Administrative Agent for the benefit of the Lenders and shall take such other
action as may be necessary, or, as reasonably determined by the Administrative Agent, desirable to
perfect the Administrative Agent’s first priority security interest in such aircraft.

SECTION 6. REMEDIAL PROVISIONS

     6.1. Certain Matters Relating to Receivables. (a) The Administrative Agent shall have
the right, at any time after the occurrence and during the continuance of an Event of Default, to
make test verifications of the Receivables in any manner and through any medium that it reasonably
considers advisable, and each Grantor shall furnish all such assistance and information as the
Administrative Agent may require in connection with such test verifications. At any time and from
time to time, at any time after the occurrence and during the continuance of an Event of Default,
upon the Administrative Agent’s request and at the expense of the relevant Grantor, such Grantor
shall cause independent public accountants or others satisfactory to the Administrative Agent to
furnish to the Administrative Agent reports showing reconciliations, aging and test verifications
of, and trial balances for, the Receivables.

          (b) After the occurrence and during the continuance of an Event of Default, each Grantor shall
collect such Grantor’s Receivables, subject to the Administrative Agent’s direction and control,
and the Administrative Agent may curtail or terminate said authority at any time. If required by
the Administrative Agent at any time after the occurrence and during the
continuance of an Event of Default, any payments of Receivables, when collected by any
Grantor, (i) shall be forthwith (and, in any event, within five Business Days) deposited by such
Grantor in the exact form received, duly indorsed by such Grantor to the Administrative Agent if
required, in a Collateral Account maintained under the sole dominion and control of the
Administrative Agent, subject to withdrawal by the Administrative Agent for the account of the
Lenders only as provided in Section 6.5, and (ii) until so turned over, shall be held by such
Grantor in trust for the Administrative Agent and the Lenders, segregated from other funds of such
Grantor. Each such deposit of Proceeds of Receivables shall be accompanied by a report identifying
in reasonable detail the nature and source of the payments included in the deposit.

 

 

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          (c) At any time after the occurrence and during the continuance of an Event of Default, at the
Administrative Agent’s request, each Grantor shall deliver to the Administrative Agent all original
and other documents evidencing, and relating to, the agreements and transactions which gave rise to
the Receivables, including, without limitation, all original orders, invoices and shipping
receipts.

     6.2. Communications with Obligors; Grantors Remain Liable. (a) The Administrative Agent
in its own name or in the name of others may at any time after the occurrence and during the
continuance of an Event of Default communicate with obligors under the Receivables and parties to
the Contracts to verify with them to the Administrative Agent’s satisfaction the existence, amount
and terms of any Receivables or Contracts.

          (b) Upon the request of the Administrative Agent at any time after the occurrence and during
the continuance of an Event of Default, each Grantor shall notify obligors on the Receivables and
parties to the Contracts that the Receivables and the Contracts have been assigned as collateral to
the Administrative Agent for the ratable benefit of the Agents and the Lenders and that payments in
respect thereof shall be made directly to the Administrative Agent.

          (c) Anything herein to the contrary notwithstanding, each Grantor shall remain liable under
each of the Receivables and Contracts to observe and perform all the conditions and obligations to
be observed and performed by it thereunder, all in accordance with the terms of any agreement
giving rise thereto. No Agent or Lender shall have any obligation or liability under any
Receivable (or any agreement giving rise thereto) or Contract by reason of or arising out of this
Agreement or the receipt by any Agent or any Lender of any payment relating thereto, nor shall any
Agent or any Lender be obligated in any manner to perform any of the obligations of any Grantor
under or pursuant to any Receivable (or any agreement giving rise thereto) or Contract, to make any
payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or
as to the sufficiency of any performance by any party thereunder, to present or file any claim, to
take any action to enforce any performance or to collect the payment of any amounts which may have
been assigned to it or to which it may be entitled at any time or times.

     6.3. Pledged Stock. (a) Unless an Event of Default shall have occurred and be continuing
and the Administrative Agent shall have given notice to the relevant Grantor of the Administrative
Agent’s intent to
exercise its corresponding rights pursuant to Section 6.3(b), each Grantor shall be permitted to
receive all cash dividends paid in respect of the Pledged Stock and all payments made in respect of
the Pledged Notes, in each case paid in the normal course of business of the relevant Issuer and
consistent with past practice, to the extent permitted in the Credit Agreement, and to exercise all
voting and corporate rights with respect to the Investment Property; provided, however, that no
vote shall be cast or corporate or other organizational right exercised or other action taken
which, in the Administrative Agent’s reasonable judgment, would impair the Collateral or which
would be inconsistent with or result in any violation of any provision of the Credit Agreement,
this Agreement or any other Loan Document.

          (b) If an Event of Default shall occur and be continuing and the Administrative Agent shall
give notice of its intent to exercise such rights to the relevant Grantor or Grantors, (i) the
Administrative Agent shall have the right to receive any and all cash

 

 

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dividends, payments or other
Proceeds paid in respect of the Investment Property and make application thereof to the Obligations
in the order set forth in Section 6.5, and (ii) any or all of the Investment Property shall be
registered in the name of the Administrative Agent or its nominee, and the Administrative Agent or
its nominee may thereafter exercise (1) all voting, corporate and other rights pertaining to such
Investment Property at any meeting of shareholders of the relevant Issuer or Issuers or otherwise
and (2) any and all rights of conversion, exchange and subscription and any other rights,
privileges or options pertaining to such Investment Property as if it were the absolute owner
thereof (including, without limitation, the right to exchange at its discretion any and all of the
Investment Property upon the merger, consolidation, reorganization, recapitalization or other
fundamental change in the corporate structure of any Issuer, or upon the exercise by any Grantor or
the Administrative Agent of any right, privilege or option pertaining to such Investment Property,
and in connection therewith, the right to deposit and deliver any and all of the Investment
Property with any committee, depositary, transfer agent, registrar or other designated agency upon
such terms and conditions as the Administrative Agent may determine), all without liability except
to account for property actually received by it, but the Administrative Agent shall have no duty to
any Grantor to exercise any such right, privilege or option and shall not be responsible for any
failure to do so or delay in so doing.

          (c) Each Grantor hereby authorizes and instructs each Issuer of any Investment Property
pledged by such Grantor hereunder to (i) comply with any instruction received by it from the
Administrative Agent in writing that (1) states that an Event of Default has occurred and is
continuing and (2) is otherwise in accordance with the terms of this Agreement, without any other
or further instructions from such Grantor, and each Grantor agrees that each Issuer shall be fully
protected in so complying, and (ii) unless otherwise expressly permitted hereby, pay any dividends
or other payments with respect to the Investment Property directly to the Administrative Agent.

     6.4. Proceeds to be Turned Over to Administrative Agent. In addition to the rights of the
Agents and the Lenders specified in Section 6.1 with respect to payments of Receivables, if an
Event of Default shall occur and be continuing, all Proceeds received by any Grantor consisting of
cash, checks and other Instruments shall be held by such Grantor in trust for the Agents and the
Lenders, segregated from other funds of such Grantor, and shall, forthwith upon receipt by such
Grantor, be turned over to the Administrative Agent in the
exact form received by such Grantor (duly indorsed by such Grantor to the Administrative Agent, if
required). All Proceeds received by the Administrative Agent hereunder shall be held by the
Administrative Agent in a Collateral Account maintained under its sole dominion and control. All
Proceeds while held by the Administrative Agent in a Collateral Account (or by such Grantor in
trust for the Administrative Agent and the Lenders) shall continue to be held as collateral
security for all the Obligations and shall not constitute payment thereof until applied as provided
in Section 6.5.

     6.5. Application of Proceeds. At such intervals as may be agreed upon by the Borrower and
the Administrative Agent, or, if an Event of Default shall have occurred and be continuing, at any
time at the Administrative Agent’s election, the Administrative Agent may apply all or any part of
Proceeds constituting Collateral, whether or not held in any Collateral Account, and any proceeds
of the guarantee set forth in Section 2, in payment of the Obligations in the following order:

 

 

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     First, to pay incurred and unpaid fees and expenses of the Agents under the
Loan Documents;

     Second, to the Administrative Agent, for application by it towards payment of
amounts then due and owing and remaining unpaid in respect of the Obligations, pro
rata among the Lenders according to the amounts of the Obligations then due and
owing and remaining unpaid to the Lenders;

     Third, to the Administrative Agent, for application by it towards prepayment of
the Obligations, pro rata among the Lenders according to the amounts of the
Obligations then held by the Lenders; and

     Fourth, any balance of such Proceeds remaining after the Obligations shall have
been paid in full, no Letters of Credit (other than those that have been cash
collateralized) shall be outstanding and the Commitments shall have terminated shall be paid
over to the Borrower or to whomsoever may be lawfully entitled to receive the same.

     6.6. Code and Other Remedies. If an Event of Default shall occur and be continuing, the
Administrative Agent, on behalf of the Lenders, may exercise, in addition to all other rights and
remedies granted to them in this Agreement and in any other instrument or agreement securing,
evidencing or relating to the Obligations, all rights and remedies of a secured party under the New
York UCC or any other applicable law. Without limiting the generality of the foregoing, the
Administrative Agent, without demand of performance or other demand, presentment, protest,
advertisement or notice of any kind (except any notice required by law referred to below) to or
upon any Grantor or any other Person (all and each of which demands, defenses, advertisements and
notices are hereby waived), may in such circumstances forthwith collect, receive, appropriate and
realize upon the Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give
option or options to purchase, or otherwise dispose of and deliver the Collateral or any part
thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale
or sales, at any exchange, broker’s board or office of any Agent or any Lender or elsewhere upon
such terms and
conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit
or for future delivery without assumption of any credit risk. Any Agent or any Lender shall have
the right upon any such public sale or sales, and, to the extent permitted by law, upon any such
private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any
right or equity of redemption in any Grantor, which right or equity is hereby waived and released.
Each Grantor further agrees, at the Administrative Agent’s request, to assemble the Collateral and
make it available to the Administrative Agent at places which the Administrative Agent shall
reasonably select, whether at such Grantor’s premises or elsewhere. The Administrative Agent shall
apply the net proceeds of any action taken by it pursuant to this Section 6.6, after deducting all
reasonable costs and expenses of every kind incurred in connection therewith or incidental to the
care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights
of the Administrative Agent and the Lenders hereunder, including, without limitation, reasonable
attorneys’ fees and disbursements, to the payment in whole or in part of the Obligations, in such
order as the Administrative Agent may elect, and only after such application and after the payment
by the Administrative Agent of any other amount required by any provision of law, including,
without limitation, Section 9-615(a)(3) of the New York UCC, need the Administrative Agent account

 

 

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for the surplus, if any, to any Grantor. To the extent permitted by applicable law, each Grantor
waives all claims, damages and demands it may acquire against any Agent or any Lender arising out
of the exercise by them of any rights hereunder. If any notice of a proposed sale or other
disposition of Collateral shall be required by law, such notice shall be deemed reasonable and
proper if given at least 10 days before such sale or other disposition.

     6.7. Registration Rights. (a) If the Administrative Agent shall determine to exercise
its right to sell any or all of the Pledged Stock pursuant to Section 6.6, and if in the opinion of
the Administrative Agent it is necessary or advisable to have the Pledged Stock, or that portion
thereof to be sold, registered under the provisions of the Securities Act, the relevant Grantor
will cause the Issuer thereof to (i) execute and deliver, and cause the directors and officers of
such Issuer to execute and deliver, all such instruments and documents, and do or cause to be done
all such other acts as may be, in the opinion of the Administrative Agent, necessary or advisable
to register the Pledged Stock, or that portion thereof to be sold, under the provisions of the
Securities Act, (ii) use its best efforts to cause the registration statement relating thereto to
become effective and to remain effective for a period of one year from the date of the first public
offering of the Pledged Stock, or that portion thereof to be sold, and (iii) make all amendments
thereto and/or to the related prospectus which, in the opinion of the Administrative Agent, are
necessary or advisable, all in conformity with the requirements of the Securities Act and the rules
and regulations of the Securities and Exchange Commission applicable thereto. Each Grantor agrees
to cause such Issuer to comply with the provisions of the securities or “Blue Sky” laws of any and
all jurisdictions which the Administrative Agent shall designate and to make available to its
security holders, as soon as practicable, an earnings statement (which need not be audited) which
will satisfy the provisions of Section 11(a) of the Securities Act.

          (b) Each Grantor recognizes that the Administrative Agent may be unable to effect a public
sale of any or all the Pledged Stock, by reason of certain prohibitions contained in the Securities
Act and applicable state securities laws or otherwise, and may be compelled to
resort to one or more private sales thereof to a restricted group of purchasers which will be
obliged to agree, among other things, to acquire such securities for their own account for
investment and not with a view to the distribution or resale thereof. Each Grantor acknowledges
and agrees that any such private sale may result in prices and other terms less favorable than if
such sale were a public sale and, notwithstanding such circumstances, agrees that any such private
sale shall be deemed to have been made in a commercially reasonable manner. The Administrative
Agent shall be under no obligation to delay a sale of any of the Pledged Stock for the period of
time necessary to permit the Issuer thereof to register such securities for public sale under the
Securities Act, or under applicable state securities laws, even if such Issuer would agree to do
so.

          (c) Each Grantor agrees to use its best efforts to do or cause to be done all such other acts
as may be necessary to make such sale or sales of all or any portion of the Pledged Stock pursuant
to this Section 6.7 valid and binding and in compliance with any and all other applicable
Requirements of Law. Each Grantor further agrees that a breach of any of the covenants contained
in this Section 6.7 will cause irreparable injury to the Agents and the Lenders, that the Agents
and the Lenders have no adequate remedy at law in respect of such breach and, as a consequence,
that each and every covenant contained in this Section 6.7 shall be specifically enforceable
against such Grantor, and such Grantor hereby waives and agrees not to

 

 

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assert any defenses against
an action for specific performance of such covenants except for a defense that no Event of Default
has occurred under the Credit Agreement.

     6.8. Waiver; Deficiency. Each Grantor shall remain liable for any deficiency if the
proceeds of any sale or other disposition of the Collateral are insufficient to pay its Obligations
and the fees and disbursements of any attorneys employed by the Administrative Agent or any Lender
to collect such deficiency.

SECTION 7. THE ADMINISTRATIVE AGENT

     7.1. Administrative Agent’s Appointment as Attorney-in-Fact, etc. (a) Each Grantor
hereby irrevocably constitutes and appoints the Administrative Agent and any officer or agent
thereof, with full power of substitution, as its true and lawful attorney-in-fact with full
irrevocable power and authority in the place and stead of such Grantor and in the name of such
Grantor or in its own name, for the purpose of carrying out the terms of this Agreement, to take
any and all appropriate action and to execute any and all documents and instruments which may be
necessary or desirable to accomplish the purposes of this Agreement, and, without limiting the
generality of the foregoing, each Grantor hereby gives the Administrative Agent the power and
right, on behalf of such Grantor, without notice to or assent by such Grantor, to do any or all of
the following:

	 	(i)  	      in the name of such Grantor or its own name, or otherwise, take
possession of and indorse and collect any checks, drafts, notes, acceptances or
other instruments for the payment of moneys due under any Receivable or
Contract or with respect to any other Collateral and file any claim or take any
other action or proceeding in any court of law or equity or otherwise
deemed appropriate by the Administrative Agent for the purpose of collecting
any and all such moneys due under any Receivable or Contract or with respect
to any other Collateral whenever payable;
	 
	 	(ii)  	      in the case of any Intellectual Property, execute and deliver,
and have recorded, any and all agreements, instruments, documents and papers as
the Administrative Agent may request to evidence the Agents’ and the Lenders’
security interest in such Intellectual Property and the goodwill and general
intangibles of such Grantor relating thereto or represented thereby;
	 
	 	(iii)  	      pay or discharge taxes and Liens levied or placed on or
threatened against the Collateral, effect any repairs or any insurance called
for by the terms of this Agreement and pay all or any part of the premiums
therefor and the costs thereof;
	 
	 	(iv)  	     execute, in connection with any sale provided for in Section
6.6 or 6.7, any indorsements, assignments or other instruments of conveyance or
transfer with respect to the Collateral; and
	 
	 	(v)  	      (1) direct any party liable for any payment under any of the
Collateral to make payment of any and all moneys due or to become due

 

 

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	 	   	thereunder directly to the Administrative Agent or as the Administrative Agent
shall direct; (2) ask or demand for, collect, and receive payment of and
receipt for, any and all moneys, claims and other amounts due or to become due
at any time in respect of or arising out of any Collateral; (3) sign and
indorse any invoices, freight or express bills, bills of lading, storage or
warehouse receipts, drafts against debtors, assignments, verifications, notices
and other documents in connection with any of the Collateral; (4) commence and
prosecute any suits, actions or proceedings at law or in equity in any court of
competent jurisdiction to collect the Collateral or any portion thereof and to
enforce any other right in respect of any Collateral; (5) defend any suit,
action or proceeding brought against such Grantor with respect to any
Collateral; (6) settle, compromise or adjust any such suit, action or
proceeding and, in connection therewith, give such discharges or releases as
the Administrative Agent may deem appropriate; (7) assign any Copyright, Patent
or Trademark (along with the goodwill of the business to which any such
Copyright, Patent or Trademark pertains), throughout the world for such term or
terms, on such conditions, and in such manner, as the Administrative Agent
shall in its sole discretion determine; and (8) generally, sell, transfer,
pledge and make any agreement with respect to or otherwise deal with any of the
Collateral as fully and completely as though the Administrative Agent were the
absolute owner thereof for all purposes, and do, at the Administrative Agent’s
option and such Grantor’s expense, at any time, or from time to time, all acts
and things which the Administrative Agent deems necessary to protect, preserve
or realize upon the Collateral and the Administrative Agent’s and
the Lenders’ security interests therein and to effect the intent of this
Agreement, all as fully and effectively as such Grantor might do.

     Anything in this Section 7.1 (a) to the contrary notwithstanding, the Administrative Agent
agrees that it will not exercise any rights under the power of attorney provided for in this
Section 7.1(a) unless an Event of Default shall have occurred and be continuing.

          (b) If any Grantor fails to perform or comply with any of its agreements contained herein, the
Administrative Agent, at its option, but without any obligation so to do, may perform or comply, or
otherwise cause performance or compliance, with such agreement.

          (c) The expenses of the Administrative Agent incurred in connection with actions undertaken as
provided in this Section 7.1, together with interest thereon at a rate per annum equal to the rate
per annum at which interest would then be payable on past due Revolving Loans that are Base Rate
Loans under the Credit Agreement, from the date of payment by the Administrative Agent to the date
reimbursed by the relevant Grantor, shall be payable by such Grantor to the Administrative Agent on
demand.

          (d) Each Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done
by virtue hereof. All powers, authorizations and agencies contained in this Agreement are coupled
with an interest and are irrevocable until this Agreement is terminated and the security interests
created hereby are released.

 

 

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     7.2. Duty of Administrative Agent. The Administrative Agent’s sole duty with respect to
the custody, safekeeping and physical preservation of the Collateral in its possession, under
Section 9-207 of the New York UCC or otherwise, shall be to deal with it in the same
manner as the Administrative Agent deals with similar property for its own account. Neither the
Administrative Agent, any Lender nor any of their respective officers, directors, employees or
agents shall be liable for failure to demand, collect or realize upon any of the Collateral or for
any delay in doing so or shall be under any obligation to sell or otherwise dispose of any
Collateral upon the request of any Grantor or any other Person or to take any other action
whatsoever with regard to the Collateral or any part thereof. The powers conferred on the Agents
and the Lenders hereunder are solely to protect the Agents’ and the Lenders’ interests in the
Collateral and shall not impose any duty upon any Agent or any Lender to exercise any such powers.
The Agents and the Lenders shall be accountable only for amounts that they actually receive as a
result of the exercise of such powers, and neither they nor any of their officers, directors,
employees or agents shall be responsible to any Grantor for any act or failure to act hereunder,
except for their own gross negligence or willful misconduct.

     7.3. Execution of Financing Statements. Pursuant to any applicable law, each Grantor
authorizes the Administrative Agent to file or record financing statements and other filing or
recording documents or instruments with respect to the Collateral without the signature of such
Grantor in such form and in such offices as the Administrative Agent determines appropriate to
perfect the security interests of the Administrative Agent under this Agreement. Each Grantor
authorizes the Administrative Agent
to use the collateral description “all personal property” in any such financing statements. Each
Grantor hereby ratifies and authorizes the filing by the Administrative Agent of any financing
statement with respect to the Collateral made prior to the date hereof.

     7.4. Authority of Administrative Agent. Each Grantor acknowledges that the rights and
responsibilities of the Administrative Agent under this Agreement with respect to any action taken
by the Administrative Agent or the exercise or non-exercise by the Administrative Agent of any
option, voting right, request, judgment or other right or remedy provided for herein or resulting
or arising out of this Agreement shall, as between the Agents and the Lenders, be governed by the
Credit Agreement and by such other agreements with respect thereto as may exist from time to time
among them, but, as between the Administrative Agent and the Grantors, the Administrative Agent
shall be conclusively presumed to be acting as agent for the Agents and the Lenders with full and
valid authority so to act or refrain from acting, and no Grantor shall be under any obligation, or
entitlement, to make any inquiry respecting such authority.

SECTION 8. MISCELLANEOUS

     8.1. Amendments in Writing. None of the terms or provisions of this Agreement may be
waived, amended, supplemented or otherwise modified except in accordance with Section 11.1 of the
Credit Agreement.

     8.2. Notices. All notices, requests and demands to or upon the Administrative Agent or any
Grantor hereunder shall be effected in the manner provided for in Section 11.2 of the Credit
Agreement; provided that any such notice, request or demand to or upon any Guarantor shall be
addressed to such Guarantor at its notice address set forth on Schedule 1.

 

 

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     8.3. No Waiver by Course of Conduct; Cumulative Remedies. No Agent or Lender shall by any
act (except by a written instrument pursuant to Section 8.1), delay, indulgence, omission or
otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any
Default or Event of Default. No failure to exercise, nor any delay in exercising, on the part of
any Agent or any Lender, any right, power or privilege hereunder shall operate as a waiver thereof.
No single or partial exercise of any right, power or privilege hereunder shall preclude any other
or further exercise thereof or the exercise of any other right, power or privilege. A waiver by
any Agent or any Lender of any right or remedy hereunder on any one occasion shall not be construed
as a bar to any right or remedy which such Administrative Agent or such Lender would otherwise have
on any future occasion. The rights and remedies herein provided are cumulative, may be exercised
singly or concurrently and are not exclusive of any other rights or remedies provided by law.

     8.4. Enforcement Expenses; Indemnification. (a) Each Guarantor agrees to pay, or reimburse each Lender and Agent for, all its costs and
expenses incurred in collecting against such Guarantor under the guarantee contained in Section 2
or otherwise enforcing or preserving any rights under this Agreement and the other Loan Documents
to which such Guarantor is a party, including, without limitation, the fees and disbursements of
counsel to each Lender and of counsel to the Administrative Agent.

          (b) Each Guarantor agrees to pay, and to save the Agents and the Lenders harmless from, any
and all liabilities with respect to, or resulting from any delay in paying, any and all stamp,
excise, sales or other taxes which may be payable or determined to be payable with respect to any
of the Collateral or in connection with any of the transactions contemplated by this Agreement.

          (c) Each Guarantor agrees to pay, and to save the Agents and the Lenders harmless from, any
and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Agreement to the extent the Borrower would be
required to do so pursuant to Section 11.5 of the Credit Agreement.

          (d) The agreements in this Section shall survive repayment of the Obligations and all other
amounts payable under the Credit Agreement and the other Loan Documents.

     8.5. Successors and Assigns. This Agreement shall be binding upon the successors and
assigns of each Grantor and shall inure to the benefit of the Administrative Agent and the Lenders
and their successors and assigns; provided that no Grantor may assign, transfer or delegate any of
its rights or obligations under this Agreement without the prior written consent of the
Administrative Agent.

     8.6. Set-Off. In addition to any rights and remedies of the Lenders provided by law, each
Lender shall have the right, without prior notice to the Grantors, any such notice being expressly
waived by the Grantors to the extent permitted by applicable law, upon any amount becoming due and
payable by any such Grantor hereunder (whether at the stated maturity, by acceleration or
otherwise), to set off and appropriate and apply against such amount any and all

 

 

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deposits (general
or special, time or demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or
contingent, matured or unmatured, at any time held or owing by such Lender or any branch or agency
thereof to or for the credit or the account of such Grantor, as the case may be. Each Lender
agrees promptly to notify such Grantor and the Administrative Agent after any such setoff and
application made by such Lender, provided that the failure to give such notice shall not
affect the validity of such setoff and application.

     8.7. Counterparts. This Agreement may be executed by one or more of the parties to this Agreement on any number of
separate counterparts (including by telecopy), and all of said counterparts taken together shall be
deemed to constitute one and the same instrument.

     8.8. Severability. Any provision of this Agreement which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition
or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

     8.9. Section Headings. The Section headings used in this Agreement are for convenience of
reference only and are not to affect the construction hereof or be taken into consideration in the
interpretation hereof.

     8.10. Integration. This Agreement and the other Loan Documents represent the agreement of
the Grantors, the Agents and the Lenders with respect to the subject matter hereof and thereof, and
there are no promises, undertakings, representations or warranties by any Agent or any Lender
relative to subject matter hereof and thereof not expressly set forth or referred to herein or in
the other Loan Documents.

     8.11. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

     8.12. Submission To Jurisdiction; Waivers. Each Grantor hereby irrevocably and
unconditionally:

          (a) submits for itself and its property in any legal action or proceeding relating to this
Agreement and the other Loan Documents to which it is a party, or for recognition and enforcement
of any judgment in respect thereof, to the non-exclusive general jurisdiction of the Courts of the
State of New York, the courts of the United States of America for the Southern District of New
York, and appellate courts from any thereof;

          (b) consents that any such action or proceeding may be brought in such courts and waives any
objection that it may now or hereafter have to the venue of any such action or proceeding in any
such court or that such action or proceeding was brought in an inconvenient court and agrees not to
plead or claim the same;

          (c) agrees that service of process in any such action or proceeding may be effected by mailing
a copy thereof by registered or certified mail (or any substantially similar

 

 

28

form of mail), postage
prepaid, to such Grantor at its address referred to in Section 8.2 or at such other address of
which the Administrative Agent shall have been notified pursuant thereto;

          (d) agrees that nothing herein shall affect the right to effect service of process in any
other manner permitted by law or shall limit the right to sue in any other jurisdiction; and

          (e) waives, to the maximum extent not prohibited by law, any right it may have to claim or
recover in any legal action or proceeding referred to in this Section any special, exemplary,
punitive or consequential damages.

     8.13. Acknowledgements. Each Grantor hereby acknowledges that:

          (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Loan Documents to which it is a party;

          (b) no Agent or Lender has any fiduciary relationship with or duty to any Grantor arising out
of or in connection with this Agreement or any of the other Loan Documents, and the relationship
between the Grantors, on the one hand, and the Agents and Lenders, on the other hand, in connection
herewith or therewith is solely that of debtor and creditor; and

          (c) no joint venture is created hereby or by the other Loan Documents or otherwise exists by
virtue of the transactions contemplated hereby among the Lenders or among the Grantors and the
Lenders.

     8.14. Additional Grantors. Each Subsidiary of the Borrower that is required to become a
party to this Agreement pursuant to Section 7.11 of the Credit Agreement shall become a Grantor for
all purposes of this Agreement upon execution and delivery by such Subsidiary of an Assumption
Agreement in the form of Annex 1 hereto.

     8.15. Releases. (a) At such time as the Loans, the Reimbursement Obligations and the
other Obligations (other than Borrower Hedge Agreement Obligations) shall have been paid in full,
the Commitments have been terminated and no Letters of Credit shall be outstanding, the Collateral
shall be released from the Liens created hereby, and this Agreement and all obligations (other than
those expressly stated to survive such termination) of the Administrative Agent and each Grantor
hereunder shall terminate, all without delivery of any instrument or performance of any act by any
party, and all rights to the Collateral shall revert to the Grantors. At the request and sole
expense of any Grantor following any such termination, the Administrative Agent shall deliver to
such Grantor any Collateral held by the Administrative Agent hereunder, and execute and deliver to
such Grantor such documents as such Grantor shall reasonably request to evidence such termination.

          (b) If any of the Collateral shall be sold, transferred or otherwise disposed of by any
Grantor in a transaction not prohibited by any Loan Documents or that has been consented to in
accordance with Section 11.1 of the Credit Agreement, then the Administrative Agent, at the request
and sole expense of such Grantor, shall execute and deliver to such Grantor
all releases or other documents reasonably necessary or desirable for the release of the Liens
created hereby on such Collateral. At the request and sole expense of the Borrower, a Subsidiary
Guarantor shall be released from its obligations hereunder in the event that all the Capital Stock

 

 

29

of such Subsidiary Guarantor shall be sold, transferred or otherwise disposed of in a transaction
not prohibited by any Loan Documents or that has been consented to in accordance with Section 11.1
of the Credit Agreement; provided that the Borrower shall have delivered to the
Administrative Agent, at least ten Business Days prior to the date of the proposed release, a
written request for release identifying the relevant Subsidiary Guarantor and the terms of the sale
or other disposition in reasonable detail, including the price thereof and any expenses in
connection therewith, together with a certification by the Borrower stating that such transaction
is in compliance with the Credit Agreement and the other Loan Documents.

     8.16. WAIVER OF JURY TRIAL. EACH GRANTOR AND, BY ACCEPTANCE OF THE BENEFITS HEREOF, EACH
AGENT AND EACH LENDER, HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM
THEREIN.

          IN WITNESS WHEREOF, each of the undersigned has caused this Guarantee and Collateral Agreement
to be duly executed and delivered as of the date first above written.

	 	 	 	 	 
	 	CARMIKE CINEMAS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	[EACH OTHER GRANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

Annex I

to

Guarantee and Collateral Agreement

     ASSUMPTION AGREEMENT, dated as of ___, 20___, made by
___, a ___corporation (the “Additional Grantor”), in
favor of Bear Stearns Corporate Lending Inc., as administrative agent (in such capacity, the
“Administrative Agent”) for the banks and other financial institutions (the
“Lenders”) parties to the Credit Agreement referred to below. All capitalized terms not
defined herein shall have the meaning ascribed to them in such Credit Agreement.

W I T N E S S E T H:

          WHEREAS, Carmike Cinemas, Inc. (the “Borrower”), the Lenders and the Administrative
Agent have entered into a Credit Agreement, dated as of May 19, 2005 (as amended, supplemented or
otherwise modified from time to time, the “Credit Agreement”);

          WHEREAS, in connection with the Credit Agreement, the Borrower and certain of its Affiliates
(other than the Additional Grantor) have entered into the Guarantee and Collateral Agreement, dated
as of May 19, 2005 (as amended, supplemented or otherwise modified from time to time, the
“Guarantee and Collateral Agreement”) in favor of the Administrative Agent for the benefit
of the Agents and the Lenders;

          WHEREAS, the Credit Agreement requires the Additional Grantor to become a party to the
Guarantee and Collateral Agreement; and

          WHEREAS, the Additional Grantor has agreed to execute and deliver this Assumption Agreement in
order to become a party to the Guarantee and Collateral Agreement;

          NOW, THEREFORE, IT IS AGREED:

          1. Guarantee and Collateral Agreement. By executing and delivering this Assumption
Agreement, the Additional Grantor, as provided in Section 8.14 of the Guarantee and Collateral
Agreement, hereby becomes a party to the Guarantee and Collateral Agreement as a Grantor thereunder
with the same force and effect as if originally named therein as a Grantor and, without limiting
the generality of the foregoing, hereby expressly assumes all obligations and liabilities of a
Grantor thereunder. The information set forth in Annex 1-A hereto is hereby added to the
information set forth in Schedules 1 through 8 to the Guarantee and Collateral Agreement. The
Additional Grantor hereby represents and warrants that each of the representations and warranties
contained in Section 4 of the Guarantee and Collateral Agreement is true and correct on and as the
date hereof (after giving effect to this Assumption Agreement) as if made on and as of such date.

          2. GOVERNING LAW. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

 

2

          IN WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed
and delivered as of the date first above written.

	 	 	 	 	 
	 	[ADDITIONAL GRANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

Annex II

to

Guarantee and Collateral Agreement

ACKNOWLEDGEMENT AND CONSENT

     The undersigned hereby acknowledges receipt of a copy of the Guarantee and Collateral
Agreement dated as of May 19, 2005 (the “Agreement”), made by the Grantors parties thereto
for the benefit of Bear Stearns Corporate Lending Inc., as Administrative Agent. The undersigned
agrees for the benefit of the Agents and the Lenders as follows:

          5. The undersigned will be bound by the terms of the Agreement and will comply with such terms
insofar as such terms are applicable to the undersigned.

          6. The undersigned will notify the Administrative Agent promptly in writing of the occurrence
of any of the events described in Section 5.8(a) of the Agreement.

          7. The terms of Sections 6.3(a) and 6.7 of the Agreement shall apply to it, mutatis
mutandis, with respect to all actions that may be required of it pursuant to Section 6.3(a)
or 6.7 of the Agreement.

	 	 	 	 	 
	 	[NAME OF ISSUER]

 	 
	 	By  	 	 
	 	Title 	 	 
	 	
Address for Notices:
 	 
	 	 	 
	 	 	 
	 	Fax: 	 	 

 

 

EXHIBIT E

The aggregate principal amount of the Secured Indebtedness that is secured by this Instrument shall
not exceed $530,000,000.

	 	 	 
	Prepared By, Recording Requested By,

	 	Jefferson County, Alabama
	and After Recording Return To:
	 	 

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, NY 10017-3954

Attn: Cynthia Parker

MORTGAGE, ASSIGNMENT OF RENTS AND LEASES,

AND SECURITY AGREEMENT

(ALABAMA)

by and from

Eastwynn Theatres, Inc., “Mortgagor”,

to

Bear Stearns Corporate Lending Inc., as Administrative Agent, “Mortgagee”

Dated as of May 19, 2005

THE SECURED PARTY (MORTGAGEE) DESIRES THIS FIXTURE FILING

TO BE INDEXED AGAINST THE RECORD OWNER OF THE REAL ESTATE

DESCRIBED HEREIN

NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, THIS MORTGAGE SHALL SECURE INDEBTEDNESS
AND OBLIGATIONS OWED BY THE MORTGAGOR TO THE MORTGAGEE ONLY TO THE EXTENT OF $5,020,000 (THE
“MAXIMUM AMOUNT”) AT ANY ONE TIME OUTSTANDING. THE MAXIMUM AMOUNT SHALL BE DEEMED THE FIRST SUCH
INDEBTEDNESS AND OBLIGATIONS INCURRED AND THE LAST TO BE REPAID.

 

 

1

     THIS MORTGAGE, ASSIGNMENT OF RENTS AND LEASES, AND SECURITY AGREEMENT (this “Instrument”)
is made and entered into as of this 19th day of May, 2005, by EASTWYNN THEATRES, INC.,
an Alabama corporation (“Mortgagor”) having an address of c/o Carmike Cinemas, Inc., 1301 First
Avenue, Columbus, Georgia 31901-2109, in favor of Bear Stearns Corporate Lending Inc., as
Administrative Agent (in such capacity,“Administrative Agent”) for the benefit of lenders
(“Lenders”) from time to time parties to the Credit Agreement (as hereinafter defined) and all
successor Administrative Agents, and assigns, in such capacity (“Mortgagee”), having an address of
383 Madison Avenue, New York, NY 10179

W I T N E S S E T H:

     WHEREAS, Mortgagor is the owner of a fee simple interest in the real property described on
Exhibit A attached hereto and incorporated herein by reference;

     WHEREAS, Carmike Cinemas, Inc., a Delaware corporation (“Borrower”), Mortgagee, the Lenders
and certain other parties have entered into that certain Credit Agreement dated as of May 19, 2005
(as the same may be amended, supplemented, restated or otherwise modified from time to time,
including, but not limited to, any extension, refinancing, replacement, increase or other
restructuring thereof, the “Credit Agreement”) (all capitalized terms used herein and not otherwise
defined shall have the same meanings given to such terms in the Credit Agreement);

     WHEREAS, in connection with and as a condition to their entering into the Credit Agreement,
Mortgagee and the Lenders have required Mortgagor guaranty certain obligations of Borrower under
the Credit Agreement pursuant to the terms thereof;

     WHEREAS, Mortgagor is a Subsidiary (as defined in the Credit Agreement) and will benefit
directly and indirectly from the extension of credit from the Lenders to Borrower pursuant to the
terms of the Credit Agreement;

     WHEREAS, Mortgagor intends these Recitals to be a material part of this Instrument; and

     WHEREAS, Mortgagee has required the execution of this Instrument as a condition to the making
of the Loans.

     NOW, THEREFORE, Mortgagor, in consideration of the Secured Indebtedness herein recited and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, irrevocably grants, mortgages, remises, aliens, assigns, and conveys to Mortgagee and
Mortgagee’s successors and assigns, subject to the further terms of this Instrument, all of the
Mortgagor’s right, title, and interest (thereunder or otherwise) in and to the following (all of
the following being hereinafter referred to as the “Secured Property”):

     ALL THOSE TRACTS OR PARCELS OF LAND being more particularly described in Exhibit A
attached hereto; together with all right, title, and interest of Mortgagor, including any
after-acquired title or reversion, in and to the rights-of-ways, streets, and alleys adjacent
thereto, all easements, and licenses, appertaining thereto, all strips and gores of land adjacent
thereto, all vaults, sewers, sewer rights, waters, water courses, water rights and powers, pumps,
pumping plants, pipes, flumes, and ditches appertaining thereto, all oil, gas, and other minerals
located thereunder, all shrubs, crops, trees, timber and other emblements now or hereafter located

 

 

2

thereon, and all estates, rights, titles, interests, privileges, liberties, tenements,
hereditaments, and appurtenances whatsoever, in any way belonging, relating to, or appertaining to
any of the foregoing (collectively hereinafter referred to as the “Land”);

     TOGETHER WITH all fixtures, buildings, structures, parking areas, landscaping, and other
improvements of every nature now or hereafter situated, erected, or placed on the Land and all
appurtenances and additions thereto and substitutions or replacements thereof, including, but not
limited to, all building materials, screens, awnings, shades, blinds, curtains, draperies, carpets,
rugs, furniture and furnishings, heating, lighting, plumbing, ventilating, air conditioning,
refrigerating, incinerating and elevator plants, vacuum cleaning systems, call systems, sprinkler
systems and other fire prevention and extinguishing apparatus and materials, motors, machinery,
pipes, appliances, and fittings (collectively hereinafter referred to as the “Improvements”);

     TOGETHER WITH all right, title and interest of Mortgagor in and to all policies of insurance
and all condemnation proceeds, which in any way now or hereafter belong, relate, or appertain to
the Land, or the Improvements, or any part thereof;

     TOGETHER WITH all present and future leases, tenancies, occupancies, and licenses, and
guaranties thereof, whether written or oral (“Leases”), of the Land or the Improvements or any part
thereof, and all income, rents, accounts receivable, issues, royalties, profits, revenues, security
deposits, and other benefits of the Land or the Improvements, from time to time accruing,
(hereinafter collectively referred to as the “Revenues”);

     TOGETHER WITH all proceeds, products, substitutions, and accessions of the foregoing of every
type.

     TO HAVE AND TO HOLD the Secured Property and all parts, rights, members, and appurtenances
thereof in fee simple, unto Mortgagee and its successors and assigns forever.

     THIS INSTRUMENT is given to secure the following obligations (collectively, the “Secured
Indebtedness”) in such order of priority as may be determined pursuant to the Credit Agreement:

          (i) all obligations and liabilities of every nature of Borrower now or hereafter existing
under or arising out of or in connection with the Credit Agreement and the other Loan Documents;

          (ii) all obligations and liabilities of every nature of Mortgagor now or hereafter existing
under or arising out of or in connection with the Credit Agreement and the other Loan Documents to
which it may become a party;

          (iii) any and all future advances made pursuant to the Credit Agreement by the Lenders to or
for the benefit of Borrower, Mortgagor or any other Guarantor, direct or indirect, together with
interest, fees, costs, and other amounts hereafter arising;

          (iv) the full and prompt payment and performance of any and all other “Guarantor Obligations”
(as defined in the Guarantee and Collateral Agreement) and covenants of Borrower, Mortgagor and the
other Guarantors to Mortgagee and the Lenders under the terms of any other agreements, assignments
or other instruments now or hereafter evidencing, securing

 

 

3

or otherwise relating to the indebtedness evidenced by the Credit Agreement, including,
without limitation, any assignment of rents and leases given by Borrower, Mortgagor or any other
Guarantor to Mortgagee;

          (v) any and all additional advances made by the Lenders to protect or preserve the Secured
Property or the lien hereof on the Secured Property, or to pay taxes, to pay premiums on insurance
on the Secured Property or to repair or maintain the Secured Property, or to complete improvements
on the Secured Property (whether or not the original Mortgagor remains the owner of the Secured
Property at the time of such advances and whether or not the original Lenders remain the owner of
the Secured Indebtedness and this Instrument); and

          (vi) any and all expenses incident to the collection of the Secured Indebtedness and the
foreclosure hereof by action in any court or by exercise of the power of sale herein contained,
including, without limitation, reasonable attorneys’ fees and costs of collection actually
incurred.

     Pursuant to the Credit Agreement, the Lenders have agreed to provide Borrower with a revolving
credit facility which permits Borrower to borrow certain principal amounts, repay all or a portion
of such principal amounts, and reborrow the amounts previously paid to the Lenders, all upon
satisfaction of certain conditions stated in the Credit Agreement. The amount of such revolving
credit facility may increase or decrease from time to time as the Lenders advance, Mortgagor
repays, and the Lenders re-advance sums on account of the revolving credit, all as more fully
described in the Credit Agreement. The term “Secured Indebtedness” includes without limitation all
advances and re-advances under the revolving credit feature of the Credit Agreement.

The aggregate principal amount of the Secured Indebtedness that is secured by this Instrument shall
not exceed Five Hundred Thirty Million Dollars ($530,000,000).

     THIS INSTRUMENT is given for the purpose of creating a lien on real property in order to
secure future advances under the Credit Agreement, whether such advances are obligatory or to be
made at the option of the Lenders, or otherwise, and whether made before or after default or
maturity or other similar events, to the same extent as if such future advances were made on the
date of the execution hereof, even if no advance was made at the time of such execution. The lien
of this Instrument, as to third persons, with or without actual knowledge hereof, shall be valid as
to all such indebtedness and such future advances, from the date of recordation of this Instrument,
shall have priority.

     THIS INSTRUMENT shall be voided only upon (i) the complete repayment and satisfaction of all
Secured Indebtedness and (ii) the termination of the Credit Agreement pursuant to the terms thereof
or the written agreement of the Lenders and Mortgagor.

     All the personal property which comprises a part of the Secured Property shall, as far as
permitted by law, be deemed to be affixed to the aforesaid Land and conveyed therewith. To the
extent any portion of the Secured Property is not or may not be deemed to be affixed to the Land,
this Instrument shall be considered to be a security agreement which creates a security interest in
such items for the benefit of the Mortgagee. In that regard, to secure the Secured Indebtedness
the Mortgagor grants to the Mortgagee such a security interest with all of the rights and remedies

 

 

4

of a secured party under the Uniform Commercial Code of the State in which the Land is located
(“Uniform Commercial Code”).

     Mortgagor further covenants and agrees with Mortgagee as follows:

ARTICLE 1

Covenants of Mortgagor

     Section 1.1 Title to the Secured Property. Mortgagor warrants that: (i) it has title
to the Secured Property in fee simple subject only to such encumbrances approved and permitted by
Mortgagee in Schedule B, Section 2 of the Commitment for Title Insurance issued by Commonwealth
Land Title Insurance Company with respect to the Secured Property (the “Permitted Encumbrances”);
(ii) it has full power and lawful authority to encumber the Secured Property in the manner and form
herein set forth; (iii) it owns or will own all Improvements; (iv) this Instrument creates a valid
and enforceable security title, security interest, and lien on the Secured Property; and (v) it
will preserve such title, and will forever warrant and defend the same to Mortgagee and will
forever warrant and defend the validity and priority of the lien hereof against the claims of all
persons and parties whomsoever.

     Section 1.2 Maintenance of the Secured Property. Except as permitted by the Credit
Agreement, Mortgagor shall maintain the Secured Property in good repair (normal wear and tear
excepted) and shall comply with the requirements of any governmental authority claiming
jurisdiction over the Secured Property. Mortgagor shall not, without the prior written consent of
Mortgagee, threaten, commit, permit, or suffer to occur any waste, material alteration, demolition,
or removal of the Secured Property or any part thereof, except as permitted by the Credit
Agreement.

     Section 1.3 Insurance; Restoration. Mortgagor shall maintain insurance with respect
to the Secured Property in accordance with the requirements set forth in the Credit Agreement, with
Mortgagee named as loss payee and additional insured. All proceeds of insurance policies
maintained hereunder shall be applied in accordance with the terms of the Credit Agreement.

     Section 1.4 Taxes and Other Charges. Except as otherwise provided by the Credit
Agreement, including, without limitation, Mortgagor’s right to contest charges, taxes and claims
contained in Section 7.3 of the Credit Agreement, Mortgagor shall pay and discharge prior to the
delinquency date thereof all taxes of every kind and nature, all water charges, sewer rents and
assessments, levies, permits, inspection and license fees, and all other charges imposed upon or
assessed against the Secured Property or any part thereof or upon the revenues, rents, issues,
income, and profits of the Secured Property and, unless Mortgagor is making monthly deposits with
Mortgagee in accordance with Section 1.11 hereof, Mortgagor shall exhibit to Mortgagee validated
receipts (or other commercially reasonable evidence of payment) showing the payment of such taxes,
assessments, water charges, sewer rents, levies, fees, and other charges which may be or become a
lien on the Secured Property within ten (10) days after Mortgagee’s request therefor. Should
Mortgagor default in the payment of any of the foregoing taxes, assessments, water charges, sewer
rents, or other charges, Mortgagee may, but shall not be obligated to, pay the same or any part
thereof, and amounts so paid shall be secured by this Instrument, and Mortgagor shall, on demand,
reimburse Mortgagee for all amounts so paid.

 

 

5

     Section 1.5 Mechanics’ and Other Liens. Except as otherwise provided by the Credit
Agreement, Mortgagor shall pay, from time to time when the same shall become due, all lawful claims
and demands of mechanics, materialmen, laborers, and others which, if unpaid, might result in, or
permit the creation of, a lien or claim of lien on the Secured Property or any part thereof and, in
general, Mortgagor shall do, or cause to be done, at the cost of Mortgagor and without expense to
Mortgagee, everything necessary to fully preserve the lien of this Instrument. In the event
Mortgagor fails to make payment of such claims and demands, Mortgagee may, but shall not be
obligated to, make payment thereof, and all sums so expended shall be secured by this Instrument,
and Mortgagor shall, on demand, reimburse Mortgagee for all sums so expended.

     Section 1.6 Condemnation Awards. Mortgagor, immediately upon written notice of the
institution of any proceedings for the condemnation of the Secured Property or any portion thereof,
will notify Mortgagee of the pendency of such proceedings. Mortgagee may participate in any such
proceedings and Mortgagor from time to time will deliver to Mortgagee all instruments requested by
it to permit such participation. All awards and compensation for condemnation or other taking or
purchase in lieu thereof, of the Secured Property or any part thereof, are hereby assigned to and
shall be paid to Mortgagee. Mortgagor hereby authorizes Mortgagee to collect and receive such
awards and compensation; and, to give proper receipts and acquittances therefor. All such awards
and compensation shall be applied in the same manner as provided in the Credit Agreement relating
to insurance proceeds. Mortgagor, upon request by Mortgagee, shall make, execute, and deliver any
and all instruments requested for the purpose of confirming the assignment of the aforesaid awards
and compensation to Mortgagee free and clear of any liens, charges, or encumbrances of any kind or
nature whatsoever.

     Section 1.7 Costs of Defending and Upholding the Lien. If any action or proceeding is
commenced to which action or proceeding Mortgagee is made a party or in which it becomes necessary
for Mortgagee to defend or uphold the lien of this Instrument, Mortgagor shall, on demand,
reimburse Mortgagee for all reasonable expenses (including, without limitation, reasonable
attorneys’ fees and appellate attorneys’ fees) actually incurred by Mortgagee in any such action or
proceeding and all such expenses shall be secured by this Instrument. In any action or proceeding
to foreclose this Instrument or to recover or collect the Secured Indebtedness, the provisions of
law relating to the recovering of costs, disbursements and allowances shall prevail unaffected by
this covenant, provided that any such recovery shall not exceed Mortgagee’s reasonable, actual
out-of-pocket fees and expenses.

     Section 1.8 Additional Advances and Disbursements. Mortgagor shall pay when due all
payments and charges on all mortgages, deeds of trust, deeds to secure debt, security agreements,
liens, encumbrances, ground and other leases, and security interests which may be or become
superior or inferior to the lien of this Instrument, and in default thereof, Mortgagee shall have
the right, but shall not be obligated, to pay, without notice to Mortgagor, such payments and
charges, and Mortgagor shall, on demand, reimburse Mortgagee for amounts so paid. In addition,
upon default of Mortgagor in the performance of any other terms, covenants, conditions, or
obligations by it to be performed under any such prior or subordinate lien, encumbrance, lease, or
security interest, Mortgagee shall have the right, but shall not be obligated, to cure such default
in the name and on behalf of Mortgagor. All sums advanced and expenses incurred at any time by
Mortgagee pursuant to this Section 1.8 or as otherwise provided under the terms and provisions of
this Instrument or under applicable law shall bear interest from

 

 

6

the date that such sum is advanced or expense incurred, to and including the date of
reimbursement, computed at the “Default Rate” as provided in the Credit Agreement (herein called
the “Default Rate”).

     Section 1.9 Costs of Enforcement. Mortgagor agrees to bear and pay all expenses
(including reasonable attorneys’ fees and all costs of collection) of or incidental to the
perfection and enforcement of any provision hereof, or the enforcement, compromise, or settlement
of this Instrument or the Secured Indebtedness, and for the curing thereof, or for defending or
asserting the rights and claims of Mortgagee in respect thereof, by litigation or otherwise. All
rights and remedies of Mortgagee shall be cumulative and may be exercised singly or concurrently.
Notwithstanding anything herein contained to the contrary, Mortgagor: (a) will not (i) at any time
insist upon, or plead, or in any manner whatsoever claim or take any benefit or advantage of any
stay or extension or moratorium law, any exemption from execution or sale of the Secured Property
or any part thereof, wherever enacted, now or at any time hereafter in force, which may affect the
covenants and terms of performance of this Instrument, nor (ii) claim, take, or insist upon any
benefit or advantage of any law now or hereafter in force providing for the valuation or appraisal
of the Secured Property, or any part thereof, prior to any sale or sales thereof which may be made
pursuant to any provision herein, or pursuant to the decree, judgment, or order of any court of
competent jurisdiction, nor (iii) after any such sale or sales, claim or exercise any right under
any statute heretofore or hereafter enacted to redeem the property so sold or any part thereof; (b)
hereby expressly waives all benefit or advantage of any such law or laws; and (c) covenants not to
hinder, delay, or impede the execution of any power herein granted or delegated to Mortgagee, but
to suffer and permit the execution of every power as though no such law or laws had been made or
enacted. Mortgagor, for itself and all who may claim under it, waives, to the extent that it
lawfully may, all right to have the Secured Property marshaled upon any foreclosure hereof.

     Section 1.10 Intangible and Other Taxes. Mortgagor shall pay any and all taxes,
charges, filing, registration and recording fees, excises, and levies imposed upon Mortgagee by
reason of its ownership of this Instrument and the other Loan Documents, or by reason of the
recording or filing thereof, or any security instrument supplemental hereto, any security
instrument or Uniform Commercial Code financing statement with respect to any fixtures or personal
property owned by Mortgagor at the Secured Property and any instrument of further assurance (other
than income, franchise and doing business taxes), and shall pay all stamp or intangible taxes and
other taxes required to be paid on any of the Loan Documents. In the event Mortgagor fails to make
such payment after demand by Mortgagee then Mortgagee shall have the right, but shall not be
obligated, to pay the amount due, and Mortgagor shall, on demand, reimburse Mortgagee for said
amount, and until so paid said amount shall become part of the Secured Indebtedness. The
provisions of this Section shall survive the repayment of the Secured Indebtedness.

     Section 1.11 Escrow Deposits. At Mortgagee’s request at any time after an Event of
Default (as hereinafter defined) has occurred, Mortgagor shall deposit with Mortgagee, monthly, one
twelfth (1/12th) of the insurance premiums and real estate taxes, assessments, water, sewer, and
other charges which might become a lien upon the Secured Property. In addition, if required by
Mortgagee at any time after an Event of Default has occurred, Mortgagor shall simultaneously
therewith deposit with Mortgagee a sum of money which together with the monthly installments
aforementioned will be sufficient to make each of the payments

 

 

7

aforementioned at least thirty (30) days prior to the date such payments are deemed
delinquent. Should said charges not be ascertainable at the time any deposit is required to be
made with Mortgagee, the deposit shall be made on the basis of the charges for the prior year, and
when the charges are fixed for the then current year, Mortgagor shall deposit any deficiency with
Mortgagee. All funds so deposited with Mortgagee shall be held by it without interest, may be
commingled by Mortgagee with its general funds and shall be applied in payment of the charges
aforementioned when and as payable, to the extent Mortgagee shall have such funds on hand. If
deposits are being made with Mortgagee, Mortgagor shall furnish Mortgagee with bills for the
charges for which such deposits are required to be made hereunder and/or such other documents
necessary for the payment of same, at least fifteen (15) days prior to the date on which the
charges first become payable. In the event Mortgagor fails to pay any such amount, Mortgagee may,
but shall not be obligated to, make payment thereof, and Mortgagor shall, on demand, reimburse
Mortgagee for all sums so expended, and until Mortgagee has been so reimbursed, such amount shall
be added to the Secured Indebtedness.

     Section 1.12 TRANSFER OF THE SECURED PROPERTY. EXCEPT AS PERMITTED BY THE CREDIT
AGREEMENT, MORTGAGOR SHALL NOT SELL, TRANSFER, PLEDGE, ENCUMBER, CREATE A SECURITY INTEREST IN, OR
OTHERWISE HYPOTHECATE, ALL OR ANY PORTION OF THE SECURED PROPERTY, OR ANY ASSETS INCLUDED THEREIN,
WITHOUT THE PRIOR WRITTEN CONSENT OF MORTGAGEE. THE CONSENT BY MORTGAGEE TO ANY SALE, TRANSFER,
PLEDGE, ENCUMBRANCE, CREATION OF A SECURITY INTEREST IN, OR OTHER HYPOTHECATION OF, ANY PORTION OF
THE SECURED PROPERTY SHALL NOT BE DEEMED TO CONSTITUTE A NOVATION OR A CONSENT TO ANY FURTHER SALE,
TRANSFER, PLEDGE, ENCUMBRANCE, CREATION OF A SECURITY INTEREST IN OR OTHER HYPOTHECATION, OR TO
WAIVE THE RIGHT OF MORTGAGEE, AT ITS OPTION, TO DECLARE THE SECURED INDEBTEDNESS IMMEDIATELY DUE
AND PAYABLE, WITHOUT NOTICE TO MORTGAGOR OR ANY OTHER PERSON OR ENTITY, UPON ANY SUCH SALE,
TRANSFER, PLEDGE, ENCUMBRANCE, CREATION OF A SECURITY INTEREST OR OTHER HYPOTHECATION TO WHICH
MORTGAGEE SHALL NOT HAVE CONSENTED.

     Section 1.13 Leases, Contracts, Etc. In addition to, and cumulatively with, all
assignments, rights, and remedies granted by Mortgagor to Mortgagee in any assignment of leases and
rents now or hereafter executed by Mortgagor to Mortgagee in respect of the Secured Property,
Mortgagor hereby further agrees as follows:

          (a) Mortgagor does hereby assign to Mortgagee, the Leases and Revenues (reserving only to
Mortgagor the right to collect currently due and payable Revenues so long as no Event of Default
has occurred and is continuing hereunder), and Mortgagor agrees to execute and deliver to Mortgagee
such additional instruments, in form and substance reasonably satisfactory to Mortgagee, as may
hereafter be requested by Mortgagee further to evidence and confirm said assignment; provided,
however, that acceptance of any such assignment shall not be construed to impose upon Mortgagee any
obligation with respect to any Lease (including, without limitation, any liability under the
covenant of quiet enjoyment contained in any lease or in any law of any applicable state in the
event that any lessee shall have been joined as a party defendant in any action to foreclose this
Instrument and shall have been barred and foreclosed thereby of all right, title, and interest and
equity of redemption in the Secured Property).

 

 

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Mortgagor shall not cancel or permit the cancellation of any Lease, or materially modify or
amend any Lease affecting the Secured Property, or accept, or permit to be made, any prepayment of
any installment of rent or fees thereunder (except for security deposits and the usual prepayment
of rent which results from the acceptance by a landlord on the first day of each month of the rent
for that month). Mortgagor shall faithfully keep and perform, or cause to be kept and performed,
all of the covenants, conditions and agreements contained in each of said instruments, now or
hereafter existing, on the part of Mortgagor to be kept and performed and shall at all times do all
things reasonably necessary to compel performance by each other party to said instruments of all
obligations, covenants and agreements by such other party to be performed thereunder.

          (b) Mortgagor shall not execute an assignment of the Leases or Revenues, or any part thereof
unless Mortgagee shall first consent to such assignment and unless such assignment shall expressly
provide that it is subordinate to the collateral assignment contained in this Instrument and any
collateral assignment executed pursuant hereto or concerning the Secured Indebtedness.

          (c) Mortgagor shall furnish to Mortgagee, within twenty (20) days after a written request by
Mortgagee to do so, a sworn statement setting forth the names of all lessees and tenants of the
Secured Property, the terms of their respective Leases, the space occupied, and the rentals payable
thereunder, and stating to Mortgagor’s best knowledge whether any material defaults, off-sets or
defenses exist in connection with any of said Leases. Any and all Leases, entered into after the
date of this Instrument shall provide for giving by the lessees or tenants thereunder of
certificates with respect to the status of such Leases and Mortgagor shall exercise Mortgagor’s
right to request such certificates promptly upon any demand therefor by Mortgagee. Mortgagor shall
provide Mortgagee with a copy of any written notice of default received by it from any tenant under
any Lease.

          (d) Mortgagee shall have the absolute and continuing right, at all times hereafter, to review
and approve any and all Leases and any other contracts, licenses or permits which, pursuant to
their operation and effect, will (or are reasonably likely to) affect, the Secured Property, or any
part thereof, and any and all modifications to existing agreements, licenses, and permits which
are proposed to be entered into subsequent to the date of this Instrument prior to their execution
and delivery by Mortgagor. Without limiting the generality of the foregoing, and in any event,
each such Lease, shall contain a provision that the rights of the parties thereunder are expressly
subordinate to all of the rights and title of Mortgagee under this Instrument.

     Section 1.14 Estoppel Certificates. Mortgagor, within twenty (20) days after receipt
of written request, shall furnish to Mortgagee a written statement, duly acknowledged, setting
forth to its knowledge the amount due under this Instrument, the terms of payment and maturity date
related to all amounts advanced pursuant to or outstanding under the Credit Agreement, the date to
which interest has been paid, whether any offsets or defenses exist against the Secured
Indebtedness and, if any are alleged to exist, the nature thereof shall be set forth in detail.

     Section 1.15 Security Deposits. To the extent required by law or, after an Event of
Default has occurred and during its continuance, if required by Mortgagee, all security deposits of
tenants of the Secured Property shall be treated as trust funds not to be commingled with any other
funds of Mortgagor. Within twenty (20) days after request by Mortgagee, Mortgagor shall

 

 

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furnish satisfactory evidence of compliance with this Section 1.15, as necessary, together
with a statement of all security deposits deposited by the tenants and copies of all Leases not
theretofore delivered to Mortgagee, certified by Mortgagor.

     Section 1.16 Indemnity. Mortgagor shall indemnify and hold Mortgagee harmless from
and against any and all suits, actions, claims, proceedings (including third party proceedings),
damages, losses, liabilities, and expenses (including, without limitation, reasonable attorneys’
fees) which may be incurred by or asserted against Mortgagee as the result of its having made loans
and advances to Mortgagor, including, but not limited to, claims for brokerage commissions or
finder’s fees for arranging such loans and advances, claims of persons claiming mechanics’ or
similar liens, claims of tenants of the Secured Property, claims for recording taxes, filing fees,
transfer taxes and similar claims relating to this Instrument, claims for the actual or threatened
release of any “Materials of Environmental Concern” (as defined in the Credit Agreement) from, on,
under, or to any of the Secured Property (occurring or arising from events occurring prior to the
cancellation of or sale under this Instrument) or the violation by Mortgagor of any law or
regulation related to the manufacture, handling, treatment, storage, or disposal of any Materials
of Environmental Concern. The foregoing indemnities shall survive full payment of the Secured
Indebtedness, the foreclosure of this Instrument, any transfer of the Secured Property, and any and
all other events relating to the foregoing.

ARTICLE 2

Default and Remedies

     Section 2.1 Events of Default. The occurrence of an “Event of Default” (as that term
is defined in the Credit Agreement) under the Credit Agreement shall constitute an “Event of
Default” hereunder.

Section 2.2 Remedies.

          (a) Upon the occurrence of any Event of Default and during its continuance, Mortgagee may take
such action, without notice or demand, as it deems advisable to protect and enforce its rights
against Mortgagor and in and to the Secured Property. Without limitation of the foregoing,
Mortgagee may take any of the following actions, each of which may be pursued concurrently or
otherwise, at such time and in such order as Mortgagee may determine, in its sole discretion,
without impairing or otherwise affecting the other rights and remedies of Mortgagee hereunder,
under the other Loan Documents, and at law: (1) declare the entire unpaid Secured Indebtedness to
be immediately due and payable; or (2) notify all tenants of the Secured Property and all others
obligated on the Leases that all rents and other sums owing on the Leases have been assigned to
Mortgagee and are to be paid directly to Mortgagee, and to enforce payment of all obligations owing
on the Leases, by suit, ejectment, cancellation, releasing, reletting, or otherwise, whether or not
Mortgagee has taken possession of the Secured Property, and to exercise whatever rights and
remedies Mortgagee may have under any assignment of rents and leases; or (3) enter into or upon the
Secured Property, either personally or by its agents, nominees or attorneys and dispossess
Mortgagor and its agents and servants therefrom, and thereupon Mortgagee may (i) use, operate,
manage, control, insure, maintain, repair, restore, and otherwise deal with all and every part of
the Secured Property and conduct business thereat; (ii) complete any construction on the Secured
Property in such manner and form as Mortgagee

 

 

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deems advisable in the reasonable exercise of its judgment; (iii) exercise all rights and
power of Mortgagor with respect to the Secured Property, whether in the name of Mortgagor, or
otherwise, including, without limitation, the right to make, cancel, enforce, or modify leases,
obtain and evict tenants, and demand, sue for, collect, and receive all Revenues, which rights
shall not be in limitation of Mortgagee’s rights under any assignment of rents and leases securing
the Secured Indebtedness; and (iv) apply the Revenues to the payment of the Secured Indebtedness,
after deducting therefrom all expenses incurred in connection with the aforesaid operations
(including reasonable attorney fees and just and reasonable compensation for the services of
Mortgagee and its agents and employees) and all amounts necessary to pay the taxes, assessments,
insurance, and other charges in connection with the Secured Property; or (4) institute proceedings
for the complete foreclosure of this Instrument either at law, or equity, in which case Mortgagee
may bid upon and purchase the Secured Property and the Secured Property may be sold for cash or
upon credit in one or more parcels; or (5) with or without entry, to the extent permitted and
pursuant to the procedures provided by applicable law, institute proceedings for the partial
foreclosure of this Instrument for the portion of the Secured Indebtedness then due and payable (if
Mortgagee shall have elected not to declare the entire Secured Indebtedness to be immediately due
and owing), subject to the continuing lien of this Instrument for the balance of the Secured
Indebtedness not then due; or (6) sell for cash or upon credit the Secured Property or any part
thereof and all estate, claim, demand, right, title, and interest of Mortgagor therein and rights
of redemption thereof, pursuant to power of sale or otherwise, at one or more sales, as an entity
or in parcels, at such time and place, upon such terms and after such notice thereof as may be
required or permitted by law, and in the event of a sale, by foreclosure or otherwise, of less than
all of the Secured Property, this Instrument shall continue as a lien on the remaining portion of
the Secured Property it being the intent to give the Mortgagee a POWER TO SELL the Secured Property
to the fullest extent permitted under applicable law, including without limitation, under §35-10-12
of the Code of Alabama; or (7) institute an action, suit or proceeding in equity for the specific
performance of any covenant, condition or agreement contained herein or in any Credit Document; or
(8) to the extent permitted by applicable law, recover judgment on the Credit Agreement either
before, during or after any proceedings for the enforcement of this Instrument; or (9) as a matter
of strict right, obtain from any court of competent jurisdiction the appointment of a trustee,
receiver, liquidator, or conservator of the Secured Property, without regard for the adequacy of
the security for the Secured Indebtedness and without regard for the solvency of Mortgagor, or any
other person, firm or other entity liable for the payment of the Secured Indebtedness, and without
regard for any other statutory or common law requirements otherwise applicable to the appointment
of a trustee, receiver, liquidator, or conservator; or (10) pay or perform any default in the
payment, performance, or observance of any term, covenant or condition of this Instrument, and all
payments made or costs or expenses incurred by Mortgagee in connection therewith, shall be secured
hereby and shall be, without demand, immediately repaid by Mortgagor to Mortgagee with interest
thereon the necessity for any such actions and of the amounts to be paid to be in the sole judgment
of Mortgagee, and Mortgagee may enter and authorize others to enter upon the Secured Property or
any part thereof for the purpose of performing or observing any such defaulted term, coven
ant, or
condition without thereby becoming liable to Mortgagor or any person in possession holding under
Mortgagor; or (11) pursue any remedy with respect to the Secured Property available to a secured
party under the Uniform Commercial Code; or (12) pursue such other remedies as Mortgagee may have
under applicable law, in equity or under this Instrument, the Credit Agreement, or any of the other
Loan Documents.

 

 

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          (b) The purchase money proceeds or avails of any sale made under or by virtue of this Article
2, together with any other sums which then may be held by Mortgagee under this Instrument, whether
under the provisions of this Article 2 or otherwise, shall be applied to the Secured Indebtedness
in the order provided in Section 6.5 of the Guarantee and Collateral Agreement.

          (c) Mortgagee may adjourn from time to time any sale by it to be made under or by virtue of
this Instrument by announcement at the time and place appointed for such sale or for such adjourned
sale or sales; and, except as otherwise provided by any applicable provision of law, Mortgagee,
without further notice or publication, may make such sale at the time and place to which the same
shall be so adjourned.

          (d) Upon the completion of any sale or sales made by Mortgagee under or by virtue of this
Article 2, Mortgagee, or an officer of any court empowered to do so, shall execute and deliver to
the accepted purchaser or purchasers a good and sufficient instrument, or good and sufficient
instruments, conveying, assigning, and transferring all estate, right, title, and interest in and
to the property and rights sold. Mortgagee is hereby irrevocably appointed the true and lawful
attorney of Mortgagor, such appointment being coupled with an interest, in its name and stead, to
make all necessary conveyances, assignments, transfers, and deliveries of the Secured Property and
rights so sold and for that purpose Mortgagee may execute all necessary instruments of conveyance,
assignment, and transfer, and may substitute one or more persons with like power, Mortgagor hereby
ratifying and confirming all that its said attorney or such substitute or substitutes shall
lawfully do by virtue hereof. Any such sale or sales made under or by virtue of this Article 2,
whether made under the power of sale herein granted or under or by virtue of judicial proceedings
or of a judgment or decree of foreclosure and sale, shall operate to divest all the estate, right,
title, interest, claim, and demand whatsoever, whether at law or in equity, of Mortgagor in and to
the properties and rights so sold, and shall be a perpetual bar both at law and in equity against
Mortgagor and against any and all persons claiming or who may claim the same, or any part thereof
from, through or under Mortgagor.

          (e) In the event of any sale made under or by virtue of this Article 2 (whether made by virtue
of judicial proceedings or of a judgment or decree of foreclosure and sale) the entire Secured
Indebtedness, if not previously due and payable, immediately thereupon shall, anything in the
Credit Agreement, this Instrument, or any other Credit Document to the contrary notwithstanding,
become due and payable.

          (f) Upon any sale made under or by virtue of this Article 2 (whether made by virtue of
judicial proceedings or of a judgment or decree of foreclosure and sale), Mortgagee, may bid for
and acquire the Secured Property or any part thereof and in lieu of paying cash therefor may make
settlement for the purchase price by crediting upon the Secured Indebtedness the net sales price
after deducting therefrom the expenses of the sale and the costs of the action and any other sums
which Mortgagee is authorized to deduct under this Instrument.

          (g) No recovery of any judgment by Mortgagee and no levy of an execution under any judgment
upon the Secured Property or upon any other property of Mortgagor shall affect in any manner or to
any extent, the lien and title of this Instrument upon the Secured Property or any part thereof, or
any liens, titles, rights, powers or remedies of Mortgagee

 

 

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hereunder, but such liens, titles, rights, powers and remedies of Mortgagee shall continue
unimpaired as before.

          (h) Mortgagor agrees, to the fullest extent permitted by law, that upon the occurrence of an
Event of Default, neither Mortgagor nor anyone claiming through or under it shall or will set up,
claim or seek to take advantage of any appraisement, valuation, stay, extension, homestead,
exemption or redemption laws now or hereafter in force, in order to prevent or hinder the
enforcement or foreclosure of this Instrument, or the absolute sale of the Secured Property, or the
final and absolute putting into possession thereof, immediately after such sale, of the purchasers
thereat, and Mortgagor, for itself and all who may at any time claim through or under it, hereby
waives to the full extent that it may lawfully so do, the benefit of all such laws, and any and all
right to have the assets comprised in the security intended to be created hereby marshaled upon any
foreclosure of the lien or title hereof.

          (i) The failure to make any such tenants of the Secured Property party to any such foreclosure
proceedings and to foreclose their rights will not be, nor be asserted to be by Mortgagor, a
defense to any proceedings instituted by Mortgagee to collect the sums secured hereby.

     Section 2.3 Possession of the Secured Property. Upon any foreclosure of the Secured
Property, it is agreed that the then owner of the Secured Property, if it is the occupant of the
Secured Property or any part thereof, shall immediately surrender possession of the Secured

Property so occupied to Mortgagee, and if such occupant is permitted to remain in possession, the
possession shall be as tenant of Mortgagee and, on demand, such occupant (a) shall pay to Mortgagee
monthly, in advance, a reasonable rental for the space so occupied, and (b) in default thereof may
be dispossessed by the usual summary proceedings. The covenants herein contained may be enforced
by a receiver of the Secured Property or any part thereof. Nothing in this Section 2.3 shall be
deemed to be a waiver of the provisions of this Instrument prohibiting the sale or other
disposition of the Secured Property without Mortgagee’s consent.

     Section 2.4 Mortgagor’s Actions After Default. Nothing herein shall be deemed to
require the commencement of a suit or the consent of Mortgagor as a condition precedent for
Mortgagee’s right to the appointment of a receiver or the exercise of any other rights or remedies
available to Mortgagee.

     Section 2.5 Control by Mortgagee After Default. Notwithstanding the appointment of
any receiver, liquidator, or trustee of Mortgagor, or of any of its property, or of the Secured
Property or any part thereof, Mortgagee shall be entitled to retain possession and control of all
property now and hereafter covered by this Instrument.

     Section 2.6 WAIVER OF MORTGAGOR’S RIGHTS. BY EXECUTION OF THIS INSTRUMENT, MORTGAGOR
EXPRESSLY: (A) ACKNOWLEDGES THE RIGHT OF MORTGAGEE TO ACCELERATE THE SECURED INDEBTEDNESS
EVIDENCED BY THE CREDIT AGREEMENT; (B) TO THE EXTENT ALLOWED BY APPLICABLE LAW, WAIVES ANY AND ALL
RIGHTS WHICH MORTGAGOR MAY HAVE UNDER THE CONSTITUTION OF THE UNITED STATES, THE VARIOUS PROVISIONS
OF THE CONSTITUTIONS FOR THE SEVERAL STATES, OR BY REASON OF ANY OTHER APPLICABLE LAW, TO NOTICE
AND TO JUDICIAL HEARING PRIOR TO THE

 

 

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EXERCISE BY MORTGAGEE OF ANY RIGHT OR REMEDY HEREIN PROVIDED TO MORTGAGEE; (C) ACKNOWLEDGES
THAT MORTGAGOR HAS READ THIS INSTRUMENT AND ITS PROVISIONS HAVE BEEN EXPLAINED FULLY TO MORTGAGOR
AND MORTGAGOR HAS CONSULTED WITH LEGAL COUNSEL OF MORTGAGOR’S CHOICE PRIOR TO EXECUTING THIS
INSTRUMENT; AND (D) ACKNOWLEDGES THAT ALL WAIVERS OF THE AFORESAID RIGHTS OF MORTGAGOR HAVE BEEN
MADE KNOWINGLY, INTENTIONALLY AND WILLINGLY BY MORTGAGOR AS PART OF A BARGAINED FOR LOAN
TRANSACTION.

ARTICLE 3

Miscellaneous

     Section 3.1 Credits Waived. Mortgagor will not claim nor demand nor be entitled to
any credit or credits against the Secured Indebtedness for so much of the taxes assessed against
the Secured Property or any part thereof as is equal to the tax rate applied to the amount due on
this Instrument or any part thereof, and no deductions shall otherwise be made or claimed from the
taxable value of the Secured Property or any part thereof by reason of this Instrument or the
Secured Indebtedness.

     Section 3.2 No Release. Mortgagor agrees, that in the event the Secured Property is
sold with the written consent of Mortgagee and Mortgagee enters into any agreement with the then
owner of the Secured Property extending the time of payment of the Secured Indebtedness, or
otherwise modifying the terms hereof, Mortgagor shall continue to be liable to pay the Secured
Indebtedness according to the tenor of any such agreement unless expressly released and discharged
in writing by Mortgagee.

     Section 3.3 Notices. All notices hereunder shall be in writing, and shall be deemed
to have been sufficiently given, or served for all purposes when delivered in accordance with the
terms of the Credit Agreement in regard to the giving of notice.

     Section 3.4 Binding Obligations. The provisions and covenants of this Instrument
shall run with the land, shall be binding upon Mortgagor and shall inure to the benefit of
Mortgagee, subsequent holders of this Instrument and their respective successors and assigns. For
the purpose of this Instrument, the term “Mortgagor” shall mean Mortgagor named herein, any
subsequent owner of the Secured Property, and their respective heirs, executors, legal
representatives, successors and assigns. If there is more than one Mortgagor, all their
undertakings hereunder shall be deemed joint and several.

     Section 3.5 Captions. The captions of the Sections of this Instrument are for the
purpose of convenience only and are not intended to be a part of this Instrument and shall not be
deemed to modify, explain, enlarge or restrict any of the provisions hereof.

     Section 3.6 Further Assurances. Mortgagor shall do, execute, acknowledge and deliver,
at the sole cost and expense of Mortgagor, all and every such further acts, deeds, conveyances,
assignments, estoppel certificates, notices of assignment, transfers and assurances as Mortgagee
may reasonably require from time to time in order to better assure, convey, assign, transfer and
confirm unto Mortgagee, the rights now or hereafter intended to be granted to

 

 

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Mortgagee under this Instrument, any other instrument executed in connection with this
Instrument or any other instrument under which Mortgagor may be or may hereafter become bound to
convey, transfer or assign to Mortgagee for carrying out the intention of facilitating the
performance of the terms of this Instrument.

     Section 3.7 Severability. Any provision of this Instrument which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof or
affecting the validity or enforceability of such provisions in any other jurisdiction.

     Section 3.8 General Conditions.

          (a) All covenants hereof shall be construed as affording to Mortgagee rights additional to and
not exclusive of the rights conferred under the provisions of applicable laws of the State in which
the Land is located.

          (b) This Instrument cannot be altered, amended, modified or discharged orally and no agreement
shall be effective to modify or discharge it in whole or in part, unless it is in writing and
signed by the party against whom enforcement of the modification, alteration, amendment or
discharge is sought.

          (c) No remedy herein conferred upon or reserved to Mortgagee is intended to be exclusive of
any other remedy or remedies, and each and every such remedy shall be cumulative, and shall be in
addition to every other remedy given hereunder or now or hereafter existing at law or in equity or
by statute. No delay or omission of Mortgagee in exercising any right or power accruing upon any
Event of Default shall impair any such right or power, or shall be construed to be a waiver of any
such Event of Default, or any acquiescence therein. Acceptance of any payment after the occurrence
of an Event of Default shall not be deemed to waive or cure such Event of Default; and every power
and remedy given by this Instrument to Mortgagee may be exercised from time to time as often as may
be deemed expedient by Mortgagee. Nothing in this Instrument, in the Credit Agreement or in any
other Credit Document shall affect the obligation of Mortgagor to pay the Secured Indebtedness in
the manner and at the time and place therein respectively expressed.

          (d) No waiver by Mortgagee will be effective unless it is in writing and then only to the
extent specifically stated. Without limiting the generality of the foregoing, any payment made by
Mortgagee for insurance premiums, taxes, assessments, water rates, sewer rentals or any other
charges affecting the Secured Property, shall not constitute a waiver of Mortgagor’s default in
making such payments and shall not obligate Mortgagee to make any further payments.

          (e) Mortgagee shall have the right to appear in and defend any action or proceeding, in the
name and on behalf of Mortgagor which Mortgagee, in its discretion, feels may adversely affect the
Secured Property or this Instrument. Mortgagee shall also have the right to institute any action
or proceeding which Mortgagee, in its discretion, feels should be brought to protect its interest
in the Secured Property or its rights hereunder. All costs and expenses incurred by Mortgagee in
connection with such actions or proceedings, including,

 

 

15

without limitation, attorneys’ fees and appellate attorneys’ fees, shall be paid by Mortgagor,
on demand.

          (f) In the event of the passage after the date of this Instrument of any law of any
governmental authority having jurisdiction, deducting the Secured Indebtedness from the value of
the Secured Property for the purpose of taxation, affecting any lien thereon or changing in any way
the laws of the taxation of mortgages or debts secured by mortgages for federal, state or local
purposes, or the manner of the collection of any such taxes, so as to affect this Instrument,
Mortgagor shall promptly pay to Mortgagee, on demand, all taxes, costs and charges for which
Mortgagee is or may be liable as a result thereof, provided said payment shall not be prohibited by
law or render any obligations under the Credit Agreement usurious, in which event Mortgagee may
declare the Secured Indebtedness to be immediately due and payable.

          (g) Mortgagor acknowledges that it has received a true copy of this Instrument.

          (h) For the purposes of this Instrument, all defined terms and personal pronouns contained
herein shall be construed, whenever the context of this Instrument so requires, so that the
singular shall be construed as the plural and vice versa and so that the masculine, feminine or
neuter gender shall be construed to include all other genders.

          (i) No provision of this Instrument shall be construed against or interpreted to the
disadvantage of Mortgagor or Mortgagee by any court or other governmental or judicial authority by
reason of such party having or being deemed to have drafted, prepared, structured or dictated such
provision.

          (j) Upon receipt of evidence reasonably satisfactory to Mortgagor of the loss, theft,
destruction or mutilation of any note or instrument evidencing a portion of the Secured
Indebtedness, and in the case of any such loss, theft or destruction, upon delivery of an indemnity
agreement reasonably satisfactory to Mortgagor or, in the case of any such mutilation, upon
surrender and cancellation of such note or instrument, Mortgagor shall execute and deliver, in lieu
thereof, a replacement note or instrument, identical in form and substance to the original note or
instrument and dated as of the date of the original note or instrument and upon such execution and
delivery all references in this Instrument and the other Loan Documents to the original note or
instrument shall be deemed to refer to such replacement note or instrument.

          (k) Time is of the essence with respect to each and every covenant, agreement and obligation
of Mortgagor under the Credit Agreement, this Instrument, and the other Loan Documents.

          (l) Whenever the Credit Agreement, this Instrument, or any other Credit Document requires the
consent, approval, waiver, acceptance, satisfaction or expression of opinion of, or the taking of
any discretionary act by Mortgagee, the right, power, privilege and option of Mortgagee to withhold
or grant its consent shall not be exhausted by the exercise thereof on one or more occasions, but
shall be a continuing right, power, privilege and option of Mortgagee with respect to any such
matters.

     Section 3.9 LEGAL CONSTRUCTION. THE ENFORCEMENT OF THIS INSTRUMENT SHALL BE
GOVERNED, CONSTRUED AND INTERPRETED BY THE

 

 

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LAWS OF THE STATE IN WHICH THE LAND IS LOCATED. NOTHING IN THIS INSTRUMENT, THE CREDIT
AGREEMENT OR IN ANY OTHER AGREEMENT AMONG MORTGAGOR AND MORTGAGEE SHALL REQUIRE MORTGAGOR TO PAY,
OR MORTGAGEE TO ACCEPT, INTEREST IN AN AMOUNT WHICH WOULD SUBJECT MORTGAGEE TO ANY PENALTY UNDER
APPLICABLE LAW. IN THE EVENT THAT THE PAYMENT OF ANY INTEREST DUE HEREUNDER OR UNDER THE CREDIT
AGREEMENT OR ANY SUCH OTHER AGREEMENT WOULD SUBJECT MORTGAGEE TO ANY PENALTY UNDER APPLICABLE LAW,
THEN AUTOMATICALLY THE OBLIGATIONS OF MORTGAGOR TO MAKE SUCH PAYMENT SHALL BE REDUCED TO THE
HIGHEST RATE AUTHORIZED UNDER APPLICABLE LAW.

     Section 3.10 WAIVER OF JURY TRIAL. MORTGAGOR AND MORTGAGEE, ON BEHALF OF THEMSELVES
AND THEIR RESPECTIVE SUCCESSORS AND ASSIGNS, WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS OR REMEDIES UNDER THE CREDIT AGREEMENT, THIS INSTRUMENT,
OR UNDER ANY OF THE OTHER LOAN DOCUMENTS OR RELATING THERETO.

     Section 3.11 Attorney’s Fees. Any and all references in this instrument to the
recovery of attorney’s fees by agent or the lenders shall be deemed to refer to reasonable, actual
attorney’s fees.

     Section 3.12 Secured Property in Multiple Counties. This Instrument may describe
Secured Property in more than one county in the State in which the Land is located, but will be
recorded in the real estate records of each such county. The Mortgagor acknowledges and agrees
that upon the occurrence of an Event of Default and during its continuance, Mortgagee shall have
the right, at its option, to foreclose this Instrument pursuant to the power of sale granted herein
against all or any portion of the Secured Property it chooses in any such county or counties in the
State in which any of the Land is located.

[EXECUTION ON FOLLOWING PAGE]

 

 

     IN WITNESS WHEREOF, Mortgagor has executed this Instrument under seal, as of the day and year
first above written.

	 	 	 	 	 
	 	EASTWYNN THEATRES, INC., an Alabama corporation

 	 
	 	By:  	 	 
	 	 	Name:  	Martin A. Durant 	 
	 	 	Title:  	Senior Vice President - Finance 	 

	 	 	 	 	 
	 	Attest:

 	 
	 	 	Name:  	Anthony J. Rhead 	 
	 	 	Title:  	Secretary 	 
	 

(CORPORATE SEAL)

 

 

	 	 	 
	 

	 	STATE OF ___:
	

	 	COUNTY OF ___:

     I, the undersigned, a Notary Public in and for said County and State, hereby certify that
___and ___, whose names as ___
___and ___, respectively, of ___, a
corporation, are signed to the foregoing instrument and who are known to me, acknowledged before me
on this day that, being informed of the contents of the said instrument, they as such officers and
with full authority, executed the same voluntarily for and as the act of said corporation on the
date the same bears date.

     Given under my hand and official notarial seal this _______ day of May, 2005

	 	 	 	 
	 

	 	Notary Public
	 
	 	
My Commission Expires:	 

 

 

EXHIBIT A

LEGAL DESCRIPTION

 

 

EXHIBIT F

FORM OF EXEMPTION CERTIFICATE

     Reference is made to the Credit Agreement, dated as of May 19, 2005 (as amended, supplemented
or otherwise modified from time to time, the “Credit Agreement”) among Carmike Cinemas,
Inc., a Delaware corporation (the “Borrower”), the several banks, financial institutions or
other entities from time to time parties to the Credit Agreement (the “Lenders”), Bear,
Stearns & Co. Inc., as sole lead arranger and sole bookrunner (in such capacity, the
“Arranger”), Wells Fargo Foothill, Inc., as documentation agent (in such capacity, the
“Documentation Agent”) and Bear Stearns Corporate Lending Inc., as administrative agent (in
such capacity, the “Administrative Agent”). Capitalized terms used herein that are not
defined herein shall have the meanings ascribed to them in the Credit Agreement.
___(the “Non-U.S. Lender”) is providing this certificate pursuant to
subsection 4.10(d) of the Credit Agreement. The Non-U.S. Lender hereby represents and warrants
that:

	 	I.  	The Non-U.S. Lender is the sole record and beneficial owner of the
Loans or the obligations evidenced by Note(s) in respect of which it is
providing this certificate.
	 
	 	II.  	The Non-U.S. Lender is not a “bank” for purposes of Section
881(c)(3)(A) of the Internal Revenue Code of 1986, as amended (the
“Code”). In this regard, the Non-U.S. Lender further represents and
warrants that:

(a) the Non-U.S. Lender is not subject to regulatory or other legal requirements as
a bank in any jurisdiction;

(b) the Non-U.S. Lender has not been treated as a bank for purposes of any tax,
securities law or other filing or submission made to any Governmental Authority, any
application made to a rating agency or qualification for any exemption from tax,
securities law or other legal requirements;

(d) The Non-U.S. Lender is not a 10-percent shareholder of the Borrower within the
meaning of Section 881(c)(3)(B) of the Code; and

(e) The Non-U.S. Lender is not a controlled foreign corporation receiving interest
from a related person within the meaning of Section 881(c)(3)(C) of the Code.

 

 

     IN WITNESS WHEREOF, the undersigned has duly executed this certificate.

	 	 	 	 	 
	 	[NAME OF NON-U.S. LENDER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Date: ____________________

 

 

EXHIBIT G

FORM OF CLOSING CERTIFICATE

          Pursuant to Section 6.1(h) of the Credit Agreement dated as of May 19, 2005 (the “Credit
Agreement”; terms defined therein being used herein as therein defined), among Carmike Cinemas,
Inc., a Delaware corporation (the “Borrower”), the several banks, financial institutions
and other entities from time to time parties to the Credit Agreement (the “Lenders”), Bear,
Stearns & Co. Inc., as sole lead arranger and sole bookrunner (in such capacity, the
“Arranger”), Wells Fargo Foothill, Inc., as documentation agent (in such capacity, the
“Documentation Agent”), and Bear Stearns Corporate Lending Inc., as administrative agent
(in such capacity, the “Administrative Agent”), the undersigned [INSERT TITLE OF OFFICER]
of [INSERT NAME OF COMPANY] (the “Company”) hereby certifies as follows:

     1. The representations and warranties of the Company set forth in each of the Loan Documents
to which it is a party or which are contained in any certificate furnished by or on behalf of the
Company pursuant to any of the Loan Documents to which it is a party are true and correct in all
material respects on and as of the date hereof with the same effect as if made on the date hereof,
except for representations and warranties expressly stated to relate to a specific earlier date, in
which case such representations and warranties were true and correct in all material respects as of
such earlier date.

     2. ___is the duly elected and qualified Corporate Secretary of the Company
and the signature set forth for such officer below is such officer’s true and genuine signature.

     3. No Default or Event of Default has occurred and is continuing as of the date hereof or
after giving effect to the Loans to be made on the date hereof. [Borrower only]

     4. The conditions precedent set forth in Section 6.1 of the Credit Agreement were satisfied
as of the Closing Date. [Borrower only]

          The undersigned Corporate Secretary of the Company certifies as follows:

     1. There are no liquidation or dissolution proceedings pending or to my knowledge threatened
against the Company, nor has any other event occurred adversely affecting or threatening the
continued corporate existence of the Company.

     2. The Company is a corporation duly incorporated, validly existing and in good standing
under the laws of the jurisdiction of its organization.

     3. Attached hereto as Annex 1 is a true and complete copy of resolutions duly adopted
by the Board of Directors of the Company on ___; such resolutions have not in any way
been amended, modified, revoked or rescinded, have been in full force and effect since their
adoption to and including the date hereof and are now in full force and effect and are the

 

 

2

only corporate proceedings of the Company now in force relating to or affecting the matters
referred to therein.

     4. Attached hereto as Annex 2 is a true and complete copy of the By-Laws of the
Company as in effect on the date hereof.

     5. Attached hereto as Annex 3 is a true and complete copy of the Certificate of
Incorporation of the Company as in effect on the date hereof, and such certificate has not been
amended, repealed, modified or restated.

     6. The following persons are now duly elected and qualified officers of the Company holding
the offices indicated next to their respective names below, and the signatures appearing opposite
their respective names below are the true and genuine signatures of such officers, and each of such
officers is duly authorized to execute and deliver on behalf of the Company each of the Loan
Documents to which it is a party and any certificate or other document to be delivered by the
Company pursuant to the Loan Documents to which it is a party:

	 	 	 	 	 
	Name
	 	Office
	 	Signature
	 
	 	 
	 	 
	 
	 	 
	 	 

          IN WITNESS WHEREOF, the undersigned have hereunto set our names as of the date set forth
below.

	 	 	 
	 

	 	 
	Name:

	 	Name:
	Title:

	 	Title:

Date: May __, 2005

 

 

ANNEX 1

[Board Resolutions]

 

 

ANNEX 2

[By-Laws]

 

 

ANNEX 3

[Certificate of Incorporation]

 

 

EXHIBIT H-1

Omitted

 

 

EXHIBIT H-2

Omitted

 

 

EXHIBIT I

FORM OF DELAYED-DRAW ACTIVATION NOTICE

		
	To: 	BEAR STEARNS CORPORATE LENDING INC., as Administrative

Agent under the Credit Agreement referred to below

          Reference is hereby made to the Credit Agreement, dated as of May 19, 2005 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”), among
Carmike Cinemas, Inc. (the “Borrower”), the Lenders from time to time parties thereto,
Wells Fargo Foothill, Inc., as Documentation Agent, and Bear Stearns Corporate Lending Inc., as
Administrative Agent. Terms defined in the Credit Agreement shall have their defined meanings when
used herein.

          This notice is a Delayed-Draw Activation Notice referred to in the Credit Agreement. Pursuant
to Section 2.2(b) of the Credit Agreement, the Borrower hereby gives you irrevocable notice that it
requests the following Delayed-Draw Term Loan under the Credit Agreement, and sets forth below the
required information relating to such Delayed-Draw Term Loan (the “Proposed Delayed-Draw Term
Loan”):

	 	1.  	The proposed Delayed-Draw Closing Date is ___.
	 
	 	2.  	The Proposed Delayed-Draw Term Loan shall include $___of Base Rate
Loans and $___of Eurodollar Loans having an initial Interest Period of ___
month[s].
	 
	 	3.  	The undersigned hereby certifies to the Administrative Agent and each Lender
that the following statements are true on the date hereof, and will be true on the
proposed Delayed-Draw Closing Date:

 

 

	 	(a)  	the representations and warranties made by any Credit Party in
the Credit Agreement or in the other Loan Documents are true and correct in all
material respects with the same effect as though such representations and
warranties had been made on and as of the date hereof (except where such
representations and warranties expressly relate to an earlier date, in which
case such representations and warranties shall have been true and correct in
all material respects as of such earlier date, and except as to changes
otherwise expressly permitted by the terms of the Loan Documents);
	 
	 	(b)  	the cash balance on hand of the Borrower and its Subsidiaries
does not exceed $15,000,000 after giving effect to the Proposed Delayed-Draw
Term Loan, the application of proceeds of the Proposed Delayed-Draw Term Loan
and the use of cash on hand as consideration for any transaction contemplated
by such application of proceeds, which proceeds and cash on hand must be
applied within a reasonable period of time thereafter;3
	 
	 	(c)  	no event has occurred and is continuing, or would result from
such Proposed Delayed-Draw Term Loan or from the application of the proceeds
therefrom, which constitutes or would constitute a Default or an Event of
Default; and
	 
	 	(d)  	all of the other conditions to the Proposed Delayed-Draw Term
Loan set forth in the Credit Agreement have been fulfilled.

          IN WITNESS WHEREOF, the undersigned has executed this Delayed-Draw Activation Notice this ___
day of ___, 20___.

	 	 	 	 	 
	 	CARMIKE CINEMAS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	3	 	This condition shall not apply to any Delayed-Draw
Term Loan made following the first date on which the Available Delayed-Draw
Commitment is $35,000,000 or less.EX-10.2 2005 CASH BONUS TARGETS

 

Exhibit 10.2

CARMIKE CINEMAS, INC.

2005 CASH BONUS TARGETS FOR THE NAMED EXECUTIVE OFFICERS

	 	 	 	 	 
	Named Executive Officer	 	2005 Bonus Target
	Michael W. Patrick

     President, Chief Executive Officer and Chairman of

     the Board of Directors

	 	 	425,000 	(1)
	 
	 	 	 	 
	Fred W. Van Noy

     Senior Vice President and Chief Operating Officer

	 	 	125,000	 
	 
	 	 	 	 
	Martin A. Durant

     Senior Vice President – Finance, Treasurer and

     Chief Financial Officer

	 	 	125,000	 
	 
	 	 	 	 
	Anthony J. Rhead

     Senior Vice President – Film and Secretary

	 	 	125,000	 
	 
	 	 	 	 
	Gary F. Krannacker

     Vice President – Operations

	 	 	67,500	 

	(1)	 	Amount is based upon Mr. Patrick’s employment agreement.

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