Document:

Exhibit 10.1

 

EXECUTION VERSION

 

 

 

 

ABL CREDIT AGREEMENT

 

Dated as of July 29, 2010

 

Among

 

ACCURIDE CORPORATION,

as Co-Borrower and Funds Administrator

 

THE INITIAL U.S. SUBSIDIARIES NAMED HEREIN,
as Co-Borrowers

 

DEUTSCHE BANK SECURITIES INC. and CREDIT SUISSE
SECURITIES (USA) LLC,

as Joint Lead Arrangers and Joint Book
Runners

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Administrative Agent and Security Agent

 

CREDIT
SUISSE SECURITIES (USA) LLC,

as
Syndication Agent

 

SUNTRUST BANK and WELLS FARGO CAPITAL FINANCE,
LLC,

as Documentation Agents

 

and

 

THE INITIAL LENDERS NAMED HEREIN,

as Initial Lenders

 

 

 

 

Table of Contents

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I Definitions and
  Accounting Terms

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
  Section 1.01 Certain Defined
  Terms

  	
   

  	
  2

  
	
  Section 1.02 Computation of
  Time Periods

  	
   

  	
  53

  
	
  Section 1.03 Accounting
  Terms

  	
   

  	
  53

  
	
  Section 1.04 FASB ASC 825

  	
   

  	
  54

  
	
  Section 1.05 Currency
  Equivalent

  	
   

  	
  54

  
	
  Section 1.06 Uniform
  Commercial Code

  	
   

  	
  54

  
	
   

  	
   

  	
   

  
	
  ARTICLE II Amounts and Terms
  of the Advances and the Letters of Credit

  	
   

  	
  54

  
	
   

  	
   

  	
   

  
	
  Section 2.01 Revolving
  Advances and Swingline Advances

  	
   

  	
  54

  
	
  Section 2.02 Making
  Revolving Advances and Swingline Advances

  	
   

  	
  56

  
	
  Section 2.03 Issuance of and
  Drawings and Reimbursements Under Letters of Credit

  	
   

  	
  60

  
	
  Section 2.04 Mandatory
  Repayment of Advances

  	
   

  	
  66

  
	
  Section 2.05 Termination or
  Reduction of Commitments

  	
   

  	
  66

  
	
  Section 2.06 Prepayments

  	
   

  	
  67

  
	
  Section 2.07 Interest

  	
   

  	
  68

  
	
  Section 2.08 Fees

  	
   

  	
  69

  
	
  Section 2.09 Conversion of
  Advances

  	
   

  	
  70

  
	
  Section 2.10 Increased
  Costs, Etc.

  	
   

  	
  71

  
	
  Section 2.11 Payments and
  Computations

  	
   

  	
  73

  
	
  Section 2.12 Taxes

  	
   

  	
  74

  
	
  Section 2.13 Sharing of
  Payments, Etc.

  	
   

  	
  77

  
	
  Section 2.14 Use of Proceeds

  	
   

  	
  78

  
	
  Section 2.15 Defaulting
  Lenders

  	
   

  	
  78

  
	
  Section 2.16 Incremental
  Loan Commitments

  	
   

  	
  81

  
	
   

  	
   

  	
   

  
	
  ARTICLE III Conditions of
  Effectiveness of Lending

  	
   

  	
  83

  
	
   

  	
   

  	
   

  
	
  Section 3.01 Conditions
  Precedent to Closing Date

  	
   

  	
  83

  
	
  Section 3.02 Conditions
  Precedent to Each Borrowing and Issuance

  	
   

  	
  89

  
	
  Section 3.03 Determinations
  Under Section 3.01

  	
   

  	
  90

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV Representations
  and Warranties

  	
   

  	
  90

  
	
   

  	
   

  	
   

  
	
  Section 4.01 Representations
  and Warranties of the Borrower

  	
   

  	
  90

  
	
   

  	
   

  	
   

  
	
  ARTICLE V Affirmative
  Covenants

  	
   

  	
  98

  
	
   

  	
   

  	
   

  
	
  Section 5           Affirmative Covenants

  	
   

  	
  98

  
	
  Section 5.01 Compliance with
  Laws, Etc.

  	
   

  	
  99

  
	
  Section 5.02 Payment of
  Taxes, Etc.

  	
   

  	
  99

  
	
  Section 5.03 Maintenance of
  Insurance

  	
   

  	
  99

  

 

i

 

Table
of Contents

(continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 5.04 Preservation of
  Corporate, Limited Liability Company and Partnership Existence, Etc.

  	
   

  	
  99

  
	
  Section 5.05 Conduct of
  Business

  	
   

  	
  100

  
	
  Section 5.06 Visitation Rights

  	
   

  	
  100

  
	
  Section 5.07 Appraisals and
  Field Exams

  	
   

  	
  100

  
	
  Section 5.08 Keeping of
  Books

  	
   

  	
  101

  
	
  Section 5.09 Maintenance of
  Properties, Etc.

  	
   

  	
  101

  
	
  Section 5.10 Transactions
  with Affiliates

  	
   

  	
  101

  
	
  Section 5.11 Covenant to
  Guarantee Obligations and to Give Security

  	
   

  	
  101

  
	
  Section 5.12 Compliance with
  Environmental Laws

  	
   

  	
  104

  
	
  Section 5.13 Preparation of
  Environmental Reports

  	
   

  	
  104

  
	
  Section 5.14 Know Your
  Customer Requests

  	
   

  	
  105

  
	
  Section 5.15 Restricted
  Accounts

  	
   

  	
  105

  
	
  Section 5.16 ABL Priority
  Collateral

  	
   

  	
  107

  
	
  Section 5.17 Designated
  Senior Indebtedness

  	
   

  	
  107

  
	
  Section 5.18 Use of Proceeds

  	
   

  	
  107

  
	
  Section 5.19 Permitted
  Acquisitions

  	
   

  	
  108

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI Negative
  Covenants

  	
   

  	
  109

  
	
   

  	
   

  	
   

  
	
  Section 6           Negative Covenants

  	
   

  	
  109

  
	
  Section 6.01
  Liens, Etc.

  	
   

  	
  109

  
	
  Section 6.02 Debt

  	
   

  	
  110

  
	
  Section 6.03
  Mergers, Etc.

  	
   

  	
  113

  
	
  Section 6.04
  Sales, Etc., of Assets

  	
   

  	
  113

  
	
  Section 6.05 Investments in
  Other Persons

  	
   

  	
  115

  
	
  Section 6.06
  Dividends, Etc.

  	
   

  	
  116

  
	
  Section 6.07
  Prepayments, Etc., of Debt

  	
   

  	
  117

  
	
  Section 6.08
  Amendment, Etc. of Documents

  	
   

  	
  118

  
	
  Section 6.09
  Partnerships, Etc.

  	
   

  	
  118

  
	
  Section 6.10 Negative Pledge

  	
   

  	
  118

  
	
  Section 6.11 No Additional
  Deposit Accounts, Etc.

  	
   

  	
  118

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII Reporting
  Requirements

  	
   

  	
  119

  
	
   

  	
   

  	
   

  
	
  Section 7           Reporting Requirements

  	
   

  	
  119

  
	
  Section 7.01 Annual
  Financials

  	
   

  	
  119

  
	
  Section 7.02 Quarterly
  Financials

  	
   

  	
  120

  
	
  Section 7.03 Monthly
  Financials

  	
   

  	
  121

  
	
  Section 7.04 Accounts
  Information

  	
   

  	
  121

  
	
  Section 7.05 Annual
  Forecasts

  	
   

  	
  121

  
	
  Section 7.06 ERISA

  	
   

  	
  121

  
	
  Section 7.07 Environmental
  Conditions

  	
   

  	
  122

  
	
  Section 7.08 Default or
  Litigation Notice

  	
   

  	
  123

  

 

ii

 

Table
of Contents

(continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 7.09 Amendment of
  Documents

  	
   

  	
  123

  
	
  Section 7.10 Management
  Letters

  	
   

  	
  123

  
	
  Section 7.11 Securities
  Reports/Other Information

  	
   

  	
  123

  
	
  Section 7.12 Borrowing Base
  Certificate

  	
   

  	
  123

  
	
  Section 7.13 Damage of
  Collateral

  	
   

  	
  124

  
	
  Section 7.14 Additional
  Information

  	
   

  	
  124

  
	
  Section 7.15 Delivery of
  Documents

  	
   

  	
  124

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII Financial
  Covenant

  	
   

  	
  125

  
	
   

  	
   

  	
   

  
	
  Section 8           Consolidated Fixed Charge Coverage
  Ratio

  	
   

  	
  125

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX Events of Default
  and Application of Funds

  	
   

  	
  125

  
	
   

  	
   

  	
   

  
	
  Section 9           Events of Default

  	
   

  	
  125

  
	
  Section 9.01 Non-payment

  	
   

  	
  125

  
	
  Section 9.02 Representations
  and Warranties

  	
   

  	
  125

  
	
  Section 9.03 Specific
  Covenants

  	
   

  	
  125

  
	
  Section 9.04 Other Defaults

  	
   

  	
  125

  
	
  Section 9.05 Cross Default

  	
   

  	
  125

  
	
  Section 9.06 Bankruptcy, Etc

  	
   

  	
  126

  
	
  Section 9.07 Judgments

  	
   

  	
  126

  
	
  Section 9.08 Invalidity of
  Loan Documents

  	
   

  	
  126

  
	
  Section 9.09 Collateral
  Documents

  	
   

  	
  127

  
	
  Section 9.10 Intercreditor
  Agreement

  	
   

  	
  127

  
	
  Section 9.11 Change of
  Control

  	
   

  	
  127

  
	
  Section 9.12 ERISA

  	
   

  	
  127

  
	
  Section 9.13 Failure of Debt
  to be Subordinated

  	
   

  	
  127

  
	
  Section 9.14 Application of
  Funds

  	
   

  	
  128

  
	
   

  	
   

  	
   

  
	
  ARTICLE X The Administrative
  Agent and the Co-Collateral Agents

  	
   

  	
  132

  
	
   

  	
   

  	
   

  
	
  Section 10.01 Authorization
  and Action

  	
   

  	
  132

  
	
  Section 10.02 Administrative
  Agent’s and Co-Collateral Agent’s Reliance, Etc.

  	
   

  	
  133

  
	
  Section 10.03 DBTCA and
  Affiliates

  	
   

  	
  134

  
	
  Section 10.04 Lender Party
  Credit Decision

  	
   

  	
  134

  
	
  Section 10.05
  Indemnification

  	
   

  	
  135

  
	
  Section 10.06 Successor
  Administrative Agents

  	
   

  	
  136

  
	
  Section 10.07 Lead
  Arrangers, Syndication Agent and Documentation Agent

  	
   

  	
  137

  
	
  Section 10.08 Collateral
  Matters

  	
   

  	
  137

  
	
  Section 10.09 Delivery of
  Information

  	
   

  	
  138

  
	
  Section 10.10 Co-Collateral
  Agents

  	
   

  	
  138

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI Miscellaneous

  	
   

  	
  139

  

 

iii

 

Table
of Contents

(continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 11.01 Amendments,
  Etc.

  	
   

  	
  139

  
	
  Section 11.02
  Notices, Etc.

  	
   

  	
  141

  
	
  Section 11.03 No Waiver;
  Remedies

  	
   

  	
  142

  
	
  Section 11.04 Costs,
  Expenses

  	
   

  	
  142

  
	
  Section 11.05 Right of
  Set-off

  	
   

  	
  144

  
	
  Section 11.06 Binding Effect

  	
   

  	
  144

  
	
  Section 11.07 Assignments
  and Participations

  	
   

  	
  144

  
	
  Section 11.08 Replacements
  of Lenders Under Certain Circumstances

  	
   

  	
  148

  
	
  Section 11.09 Execution in
  Counterparts

  	
   

  	
  148

  
	
  Section 11.10 No Liability
  of an Issuing Bank

  	
   

  	
  149

  
	
  Section 11.11
  Confidentiality

  	
   

  	
  149

  
	
  Section 11.12 Release of
  Collateral

  	
   

  	
  150

  
	
  Section 11.13 USA Patriot
  Act

  	
   

  	
  150

  
	
  Section 11.14 OTHER LIENS ON
  COLLATERAL; TERMS OF INTERCREDITOR AGREEMENT; ETC.

  	
   

  	
  150

  
	
  Section 11.15
  Jurisdiction, Etc.

  	
   

  	
  151

  
	
  Section 11.16 Judgment

  	
   

  	
  151

  
	
  Section 11.17 Governing Law

  	
   

  	
  152

  
	
  Section 11.18 Waiver of Jury
  Trial

  	
   

  	
  152

  
	
  Section 11.19 Approved Hedge
  Agreement Obligations

  	
   

  	
  152

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII Nature of
  Obligations

  	
   

  	
  153

  
	
   

  	
   

  	
   

  
	
  Section 12.01 Nature of
  Obligations

  	
   

  	
  153

  
	
  Section 12.02 Independent
  Obligation

  	
   

  	
  154

  
	
  Section 12.03 Authorization

  	
   

  	
  154

  
	
  Section 12.04 Reliance

  	
   

  	
  154

  
	
  Section 12.05 Contribution;
  Subrogation

  	
   

  	
  155

  
	
  Section 12.06 Waiver

  	
   

  	
  155

  
	
  Section 12.07 Rights and
  Obligations

  	
   

  	
  155

  

 

iv

 

Table of Contents

 

	
  SCHEDULES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule I

  	
  —

  	
  Commitments

  
	
  Schedule 1.01(a)

  	
  —

  	
  Concentration
  Limits

  
	
  Schedule 3.01(h)(xiii)

  	
  —

  	
  Mortgages

  
	
  Schedule 4.01(b)

  	
  —

  	
  Subsidiaries

  
	
  Schedule 4.01(n)

  	
  —

  	
  Environmental
  Issues

  
	
  Schedule 4.01(s)

  	
  —

  	
  Existing
  Debt

  
	
  Schedule 4.01(t)

  	
  —

  	
  Owned
  Real Property

  
	
  Schedule 4.01(u)

  	
  —

  	
  Leased
  Real Property

  
	
  Schedule 4.01(v)

  	
  —

  	
  Leases
  of Real Property

  
	
  Schedule 4.01(w)

  	
  —

  	
  Intellectual
  Property

  
	
  Schedule 6.01

  	
  —

  	
  Existing
  Liens

  
	
  Schedule 6.05(a)

  	
  —

  	
  Existing
  Investments

  
	
  Schedule 6.11

  	
  —

  	
  Existing
  Accounts

  

 

	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A-1

  	
  —

  	
  Form of
  Revolving Note

  
	
  Exhibit A-2

  	
  —

  	
  Form of
  Swingline Note

  
	
  Exhibit B

  	
  —

  	
  Form of
  Notice of Revolving Borrowing

  
	
  Exhibit C-1

  	
  —

  	
  Form of
  Notice of Swingline Borrowing

  
	
  Exhibit C-2

  	
  —

  	
  Form of
  Notice of Swingline Redemption

  
	
  Exhibit D

  	
  —

  	
  Form of
  Letter of Credit Request

  
	
  Exhibit E

  	
  —

  	
  Form of
  Assignment and Acceptance

  
	
  Exhibit F

  	
  —

  	
  Form of
  Mortgage

  
	
  Exhibit G

  	
  —

  	
  Form of
  Solvency Certificate

  
	
  Exhibit H-1

  	
  —

  	
  Form of
  Opinion of Latham & Watkins LLP

  
	
  Exhibit H-2

  	
  —

  	
  Form of
  Opinion of In-House Counsel of Borrower

  
	
  Exhibit H-3

  	
  —

  	
  [Reserved]

  
	
  Exhibit H-4

  	
  —

  	
  [Reserved]

  
	
  Exhibit I

  	
  —

  	
  Form of
  Guarantee and Collateral Agreement

  
	
  Exhibit J

  	
  —

  	
  Form of
  Borrowing Base Certificate

  
	
  Exhibit K

  	
  —

  	
  Form of
  Intercreditor Agreement

  
	
  Exhibit L

  	
  —

  	
  Form of
  Accuride Mexican Pledge Agreement

  
	
  Exhibit M

  	
  —

  	
  Form of
  Bostrom Mexican Pledge Agreement

  
	
  Exhibit N

  	
  —

  	
  [Reserved]

  
	
  Exhibit O

  	
  —

  	
  Form of
  Incremental Commitment Agreement

  
	
  Exhibit P

  	
  —

  	
  Form of
  Subordination Agreement

  

 

v

 

ABL CREDIT AGREEMENT

 

ABL CREDIT AGREEMENT, dated as of July 29, 2010 (this “Agreement”),
among ACCURIDE CORPORATION, a Delaware corporation (the “Borrower”),
each U.S. Subsidiary of the Borrower set forth on the signature pages hereto
(together with the Borrower and any other entity that becomes a Co-Borrower
pursuant to a joinder agreement, collectively, the “Co-Borrowers” and
each, a “Co-Borrower”), DEUTSCHE BANK SECURITIES INC. (“DBSI”)
and CREDIT SUISSE SECURITIES (USA) LLC as joint lead arrangers and joint book
runners (in such capacity, the “Lead Arrangers”) for the Lender Parties,
DEUTSCHE BANK TRUST COMPANY AMERICAS (“DBTCA”), as administrative agent
and security agent for the Secured Parties (as hereinafter defined) (in such
capacity, together with any successor appointed pursuant to Article X,
the “Administrative Agent”), DBTCA, SUNTRUST BANK and WELLS FARGO
CAPITAL FINANCE, LLC as co-collateral agents (in such capacity, collectively
the “Co-Collateral Agents” and each a “Co-Collateral Agent”), CREDIT
SUISSE SECURITIES (USA) LLC, as syndication agent (in such capacity, the “Syndication
Agent”), SUNTRUST BANK and WELLS FARGO CAPITAL FINANCE, LLC as
co-documentation agents (in such capacity, collectively the “Co-Documentation
Agents” and each a “Co-Documentation Agent”) and the banks and
financial institutions listed on the signature pages hereof as lenders.

 

PRELIMINARY STATEMENTS:

 

(1)   The Borrower and Accuride
Canada Inc., a corporation organized and existing under the law of the Province
of Ontario (together with the Borrower, the “Existing Borrowers”) are
party to a Fifth Amended and Restated Credit Agreement, dated as of February 26,
2010, with the banks, financial institutions and other institutional lenders
party thereto, Citibank, N.A. as the existing issuing bank, DBTCA as the
administrative agent and DBSI as the lead arranger (the “Existing Credit
Agreement”).

 

(2)   The Existing Borrowers
intend to repay in full all outstandings and terminate all commitments under
the Existing Credit Agreement.

 

(3)   The sources of funds needed
to effect the Refinancing and to pay all fees and expenses incurred in
connection with the Transaction and to provide for the working capital needs
and general corporate requirements of the Borrower and its subsidiaries after
giving effect to the Transaction shall be provided partially through (i) the
issuance and sale by the Borrower of approximately $310.0 million in aggregate
principal amount of senior secured notes in a Regulation S registered public
offering or a Rule 144A private placement and (ii) the Facility
provided under this Agreement.

 

Capitalized terms used but not defined in the foregoing Preliminary
Statements have the meanings ascribed to such terms in Section 1.01.

 

NOW, THEREFORE, IT IS AGREED:

 

 

ARTICLE I

 

Definitions
and Accounting Terms

 

Section 1.01 
Certain Defined Terms.  As used in this Agreement, the following
terms shall have the following meanings (such meanings to be equally applicable
to both the singular and plural forms of the terms defined):

 

“ABL Priority Collateral” means all “ABL Priority Collateral” as
defined in the Intercreditor Agreement and shall include, collectively, all of
the personal property in which first priority liens are granted or purported to
be granted pursuant to the Collateral Documents as security for the Obligations
of the Co-Borrowers under the Loan Documents including, without limitation, all
Accounts and Inventory of the Co-Borrowers.

 

“Account” means (i) any
“Account” as such term is defined in Article 9 of the UCC and (ii) any
other right to payment for the sale, lease, license, assignment or other
disposal of any Inventory or the performance of services (whether performed or
to be performed), in each case existing on the date of this Agreement or
hereafter arising, whether or not earned by performance.

 

“Account Debtor” means each Person who is obligated on an
Account.

 

“Accounts Formula Amount” means on any date of determination, (x) 85%
of the Eligible Accounts minus (y) the Dilution Reserve on such
date of determination.

 

“Accounts Information” has the meaning specified in Section 7.04.

 

“Accuride Canada” means Accuride Canada Inc.

 

“Accuride Mexican Pledge Agreement” means the Pledge of Shares
Agreement substantially in the form of Exhibit L attached hereto, dated
as of July 29, 2010, between the Borrower and the Security Agent, for the
benefit of the Secured Parties, as such may be amended, supplemented or
otherwise modified from time to time, and including any agreement entered into
by the Borrower and the Security Agent as a replacement thereof.

 

“Acquired Entity or Business” means either (a) the assets
constituting a business, division or product line of any Person not already a
Subsidiary of the Borrower or (b) 100% of the Equity Interests of any such
Person, which Person shall, as a result of the acquisition of such Equity
Interests, become a Wholly-Owned U.S. Subsidiary of the Borrower (or shall be
merged with and into the Borrower or another Wholly-Owned U.S. Subsidiary of
the Borrower that is a Co-Borrower, with the Borrower or such Co-Borrower being
the surviving or continuing Person).

 

“Adjustable Applicable Margins” has the meaning provided in the
definition of Applicable Margin.

 

“Adjusted Consolidated EBITDA” means, for any period,
Consolidated EBITDA for such period minus, to the extent any
Restructuring Charges or any non-cash charges pursuant to clauses (a)(iv), (a)(vii) or
(a)(viii) respectively of the definition of Consolidated EBITDA were added
back to Consolidated Net Income when computing Consolidated EBITDA for a prior
period (or that would have been added back had this Agreement been in effect
during such prior period), an amount equal to the difference between the amount
actually paid in cash during such 

 

2

 

period
on account of such Restructuring Charges or such other non-cash charges (except
to the extent otherwise already reflected in Consolidated Net Income for such
period) less an amount not to exceed, for each consecutive four Fiscal Quarter
period, $3,500,000 in aggregate (or for periods shorter than 12 months, an
amount equal to $3,500,000 multiplied by a fraction, the numerator of which is
the actual number of months in the period and the denominator of which is 12
months).

 

“Adjusted Total Commitment” means the amount equal to 85% of the
Total Commitment as in effect on the Closing Date.

 

“Administrative Agent” has the meaning specified in the first
paragraph of this Agreement.

 

“Administrative Agent’s Account” means the account of the
Administrative Agent maintained by the Administrative Agent at (a) its
office at 60 Wall Street, New York, New York 10005, Reference:  Accuride ABL Facility or (b) such other
office of the Administrative Agent located in the United States as may from time
to time hereafter be designated as such in a written notice delivered by the
Administrative Agent to the Funds Administrator and each Lender.

 

“Advance” means an Agent Advance, a Revolving Advance, a
Swingline Advance or a Letter of Credit Advance.

 

“Affiliate” means, as to any Person, any other Person that,
directly or indirectly, controls, is controlled by or is under common control
with such Person (or, in the case of any Lender which is an investment fund, (a) the
investment advisor thereof, and (b) any other investment fund having the
same investment advisor), or is a director or officer of such Person.  For purposes of this definition, the term “control”
(including the terms “controlling”, “controlled by” and “under common control
with”) of a Person means the possession, direct or indirect, of the power to
vote 10% or more of the Voting Stock of such Person or to direct or cause the
direction of the management and policies of such Person, whether through the
ownership of Voting Stock, by contract or otherwise.

 

“Affiliated Account Debtors” means, with respect to an Account
Debtor, an Affiliate of such Account Debtor which is also an Account Debtor.

 

“Agent Advance” has the meaning provided in Section 2.01(c).

 

“Agent Advance Amount” has the meaning provided in Section 2.01(c).

 

“Agent Advance Period” has the meaning provided in Section 2.01(c).

 

“Aggregate Exposure” at any time means the sum of (a) the
aggregate principal amount of all Revolving Advances outstanding at such time, (b) the
aggregate principal amount of all Swingline Advances outstanding at such time
(exclusive of Swingline Advances which are repaid with the proceeds of, and
simultaneously with the incurrence of, the respective incurrence of Revolving
Advances) and (c) the aggregate amount of all Letter of Credit
Outstandings at 

 

3

 

such
time (exclusive of Letter of Credit Outstandings that are repaid with the
proceeds of, and simultaneously with the incurrence of, the respective
incurrence of Revolving Advances).

 

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

 

“Anti-Terrorism Laws”
means:

 

(a)           the
Executive Order No. 13224 of September 23, 2001, Blocking Property
and Prohibiting Transactions With Persons Who Commit, Threaten To Commit, or
Support Terrorism (the “Executive Order”);

 

(b)           the
USA Patriot Act;

 

(c)           the
Money Laundering Control Act of 1986, Public Law 99-570;

 

(d)           the
International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq.,
and the Trading with the Enemy Act, 50 U.S.C. App. §§ 1 et  seq.,
and any Executive Order or regulation promulgated thereunder and administered
by the Office of Foreign Assets Control (“OFAC”) of the U.S. Department
of the Treasury; and

 

(e)           any
similar law enacted in the United States of America subsequent to the date of
this Agreement.

 

“Applicable Eligible Jurisdiction” means (i) in the case of
Eligible Accounts, the United States or Canada (subject to the proviso set
forth in clause (i) of the definition of “Eligible Accounts”) and (ii) in
the case of Eligible Inventory, (x) the United States and (y) each
Province of Canada and each other Canadian jurisdiction (other than Quebec),
where the Administrative Agent has a first priority lien on the Inventory of
the applicable Co-Borrower located in such jurisdiction.

 

“Applicable Margin” initially means a percentage per annum equal
to (i) in the case of Revolving Advances maintained as (A) Base Rate
Advances, 2.50% and (B) LIBOR Advances, 3.50%; and (ii) in the case
of Swingline Advances, 2.50%.  From and
after each day of delivery of any certificate delivered in accordance with the
first sentence of the following paragraph indicating an entitlement to a
different margin for any Borrowing than that described in the immediately
preceding sentence (each, a “Start Date”) to and including the
applicable End Date described below, the Applicable Margins for such Advances
(hereinafter, the “Adjustable Applicable Margins”) shall be those set
forth below opposite the Total Leverage Ratio indicated to have been achieved
in any certificate delivered in accordance with the following sentence:

 

	
  Total
  Leverage Ratio

  	
   

  	
  Revolving Advance

  LIBOR Margin

  	
   

  	
  Revolving Advance and Swingline

  Advance Base Rate Margin

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Greater than 4.00 to 1.0

  	
   

  	
  3.75

  	
  %

  	
  2.75

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Greater than 3.50 to 1.0 but less than or equal to
  4.00 to 1.0

  	
   

  	
  3.50

  	
  %

  	
  2.50

  	
  %

  

 

4

 

	
  Total
  Leverage Ratio

  	
   

  	
  Revolving Advance

  LIBOR Margin

  	
   

  	
  Revolving Advance and Swingline

  Advance Base Rate Margin

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Greater than 3.00 to 1.0 but less than or equal to
  3.50 to 1.0

  	
   

  	
  3.25

  	
  %

  	
  2.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less than or equal to 3.00 to 1.0

  	
   

  	
  3.00

  	
  %

  	
  2.00

  	
  %

  

 

The Total Leverage Ratio used in a determination of Adjustable
Applicable Margins shall be determined based on the delivery of a certificate
of the Borrower (each, a “Quarterly Pricing Certificate”) by a
Responsible Officer of the Borrower to the Administrative Agent (with a copy to
be sent by the Administrative Agent to each Lender, if requested by them),
concurrently with delivery of the financial statements required to be delivered
pursuant to Sections 7.01 or 7.02, which certificate shall set
forth the calculation of the Total Leverage Ratio as at the last day of the
Measurement Period ended immediately prior to the relevant Start Date (but
determined on a Pro Forma Basis solely
to give effect to all Permitted Acquisitions (if any) and all Significant Asset
Sales (if any) consummated on or prior to the date of delivery of such
certificate and any Debt incurred, assumed or permanently repaid in connection
therewith) and the Adjustable Applicable Margins which shall be thereafter
applicable (until the same are changed or cease to apply in accordance with the
following sentences); provided that at the time of the consummation of
any Permitted Acquisition or Significant Asset Sale, a Responsible Officer of
the Borrower shall deliver to the Administrative Agent a certificate setting
forth the calculation of the Total Leverage Ratio on a Pro Forma Basis (solely to give effect to all Permitted Acquisitions
(if any) and all Significant Asset Sales (if any) consummated on or prior to
the date of the delivery of such certificate and any Debt incurred or assumed
in connection therewith) as of the last day of the last Measurement Period
ended prior to the date on which such Permitted Acquisition or Significant
Asset Sale is consummated for which financial statements have been made
available (or were required to be made available) pursuant to Sections 7.01
or 7.02, as the case may be, and the date of such consummation shall be
deemed to be a Start Date and the Adjustable Applicable Margins which shall be
thereafter applicable (until the same are changed or cease to apply in
accordance with the following sentences) shall be based upon the Total Leverage
Ratio as so calculated.  The Adjustable
Applicable Margins so determined shall apply, except as set forth in the
succeeding sentence, from the relevant Start Date to the earliest of (x) the
date on which the next certificate is delivered to the Administrative Agent, (y) the
date on which the next Permitted Acquisition or Significant Asset Sale is
consummated or (z) the date on which financial statements are required to
be delivered pursuant to Sections 7.01 or 7.02 with respect to
the Measurement Period in which the previous Start Date occurred (such earliest
date, the “End Date”), at which time, if no certificate has been
delivered to the Administrative Agent indicating an entitlement to new
Adjustable Applicable Margins (and thus commencing a new Start Date), the
Adjustable Applicable Margins shall be those set forth in the first sentence of
this definition, provided that if at the time such certificate is not
delivered, the Adjustable Applicable Margins are higher than those set forth in
the first sentence of this definition, the Adjustable Applicable Margins will
remain at such higher rates. 
Notwithstanding anything to the contrary contained above in this
definition, the Adjustable Applicable Margins at all times (i) prior to
the date of delivery of the financial statements

 

5

 

pursuant
to Section 7.02 for the Fiscal Quarter of the Borrower ended September 30,
2010, shall be those set forth in the first sentence of this definition and (ii) during
which there shall exist any Default or Event of Default, shall be the highest
percentages set forth in the grid above.

 

Notwithstanding anything to the contrary contained above in this
definition or elsewhere in this Agreement, if it is subsequently determined
that the Total Leverage Ratio set forth in any Quarterly Pricing Certificate
delivered for any period is inaccurate for any reason and the result thereof is
that the Lenders received interest or fees for any period based on an Applicable
Margin that is less than that which would have been applicable had the Total
Leverage Ratio been accurately determined, then, for all purposes of this
Agreement, the “Applicable Margin” for any day occurring within the period
covered by such Quarterly Pricing Certificate shall retroactively be deemed to
be the relevant percentage as based upon the accurately determined Total
Leverage Ratio for such period, and any shortfall in the interest or fees
theretofore paid by the Borrower for the relevant period pursuant to Sections
2.07(a) and 2.08(a) as a result of the miscalculation of the
Total Leverage Ratio shall be deemed to be (and shall be) due and payable under
the relevant provisions of Section 2.07(a) or Section 2.08(a),
as applicable, at the time the interest or fees for such period were required
to be paid pursuant to said Section on the same basis as if the Total
Leverage Ratio had been accurately set forth in such Quarterly Pricing
Certificate (and shall remain due and payable until paid in full, together with
all amounts owing under Section 2.07(b), in accordance with the
terms of this Agreement).

 

“Applicable Percentage” means the percentage per annum set forth
below opposite the applicable daily average Total Unused Commitment for the
period for which commitment fees are payable pursuant to Section 2.08(a):

 

	
  Total
  Unused Commitment

  	
   

  	
  Applicable Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than or equal to 50% of the Total Commitment

  	
   

  	
  0.50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Greater than 50% of the Total Commitment

  	
   

  	
  0.75

  	
  %

  

 

“Appraisal Report” means any appraisal report reasonably
satisfactory to the Administrative Agent and prepared by independent
consultants selected by the Administrative Agent and reasonably satisfactory to
the Borrower.

 

“Approved Hedge Agreement Obligations” means all Secured Hedging
Obligations that have been designated to the Administrative Agent and the
Security Agent as an Approved Hedge Agreement Obligation by the Borrower and
acknowledged as such by the Administrative Agent and the Security Agent to the
Borrower in accordance with Section 11.19(a).

 

“Asset Sale” means any sale, transfer or other disposition by
the Borrower or any of its Subsidiaries to any Person (including by way of
redemption by such Person) other than to the Borrower or a Wholly-Owned
Subsidiary of the Borrower of any asset (including, without limitation, any
capital stock or other securities of, or Equity Interests in, another Person),
but excluding sales of assets pursuant to Sections
6.04(a), (d), (e) and (f).

 

6

 

“Assignment and Acceptance” means an assignment and acceptance
entered into by a Lender Party and an Eligible Assignee, and accepted by the
Administrative Agent and the Borrower, in accordance with Section 11.07(e) and
in substantially the form of Exhibit E hereto.

 

“Assumption Agreement” means an assumption agreement,
substantially in the form of Annex 1 to the Guarantee and
Collateral Agreement.

 

“Availability Condition” means (a) in the case of
determining whether a Dominion Period is in effect, the greater of (i) $10,000,000
and (ii) 15% of the Total Commitment as then in effect, and (b) in
the case of determining whether a Compliance Period is in effect, the greater
of (i) $10,000,000 and (ii) 15% of the Total Commitment as then in
effect.

 

“Availability Reserve” means, with respect to the Borrowing
Base, as of any date of determination, the sum (without duplication) of:

 

(a)                          the Hedging
Reserve; plus

 

(b)                         the Inventory
Reserve; plus

 

(c)                          the Rent
Reserve; plus

 

such
other events, conditions or contingencies (and in such amounts) in respect of
which the Co-Collateral Agents, in their Permitted Discretion, determine
additional reserves should be established from time to time.

 

“Available LC Amount” of any Letter of Credit means, at any time,
the maximum amount available to be drawn under such Letter of Credit at such
time, in each case determined (a) as if any future automatic increases in
the maximum amount available that are provided for in any such Letter of Credit
had in fact occurred at such time and (b) without regard to whether any
conditions to drawing could then be met but after giving effect to all previous
drawings made thereunder (assuming compliance at such time with all conditions
to drawing).

 

“Back-Stop Arrangements” means, collectively, the Letter of
Credit Back-Stop Arrangements and the Swingline Back-Stop Arrangements.

 

“Bankruptcy Code” means the United States Bankruptcy Code (11
U.S.C. § 101 et seq.), as
amended from time to time.

 

“Bankruptcy Proceedings” means, with respect to the Borrower and
each of its U.S. Subsidiaries, the voluntary cases commenced by them under
Chapter 11 of the Bankruptcy Code (Case Nos. 09-13450 through 09-13469,
inclusive, which were administratively consolidated as Chapter 11 Case No. 09-13449
(collectively, the “Bankruptcy Filings”)) in the United States Bankruptcy Court
for the District of Delaware, on October 8, 2009 and the subsequent entry,
on February 18, 2010, of a confirmation order confirming the Joint Plan of
Reorganization for Accuride Corporation.

 

“Base Rate” means, for any day, a rate per annum equal to the
greatest of (a) the Prime Rate in effect on such day, (b) the Federal
Funds Rate in effect on such day plus 1⁄2 of 1%

 

7

 

and
(c) the LIBOR for a LIBOR Advance denominated in U.S. Dollars with a
one-month interest period commencing on such day plus 1.0%.  For purposes of clause (c) of this
definition, the LIBOR shall be determined using the LIBOR as otherwise
determined by the Administrative Agent in accordance with the definition of
LIBOR, except that (x) if a given day is a Business Day, such
determination shall be made on such day (rather than on the second Business Day
prior to the first day of an Interest Period) or (y) if a given day is not
a Business Day, the LIBOR for such day shall be the rate determined by the
Administrative Agent pursuant to the preceding clause (x) for the most
recent Business Day preceding such day; provided that the determination
of the LIBOR shall disregard the rounding requirement set forth in the
definition of LIBOR.

 

“Base Rate Advance” means an Advance that bears interest as
provided in Section 2.07(a)(i).

 

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

 

“Borrower’s Account” means the account of the Funds
Administrator maintained by the Funds Administrator with the Administrative
Agent at its office at (i) 60 Wall Street, New York, New York 10005 or (ii) such
other office of the Administrative Agent as may from time to time hereafter be
designated as such in a written notice delivered by the Administrative Agent to
the Funds Administrator and each Lender as the case may be.

 

“Borrowing” means a Revolving Borrowing or a Swingline Advance.

 

“Borrowing Base” means, as of any date of calculation, an amount
equal to the sum of:

 

(a)           the Accounts Formula Amount; plus

 

(b)           the Inventory Formula Amount
(provided that, if applicable, the Inventory Formula Amount for the purposes of
this calculation shall be reduced to an amount that would not cause such
Inventory Formula Amount to exceed 50% of the sum of clause (a) above and
this clause (b); minus

 

(c)           the Availability Reserves.

 

The Co-Collateral Agents shall have the right (but shall not have any
obligation) to review such computations in consultation with the Funds
Administrator and if, in their Permitted Discretion, such computations have not
been calculated in accordance with the terms of this Agreement, the
Co-Collateral Agents shall have the right to correct any such errors in such
manner as they shall determine in their Permitted Discretion.

 

“Borrowing Base Certificate” means the Initial Borrowing Base
Certificate and each Bring Down Borrowing Base Certificate.

 

“Bostrom Mexican Pledge Agreement” means the Pledge of Shares
Agreement substantially in the form of Exhibit M attached hereto,
dated as of July 29, 2010, between Bostrom Seating, Inc. and the
Security Agent, for the benefit of the Secured Parties, as amended, 

 

8

 

supplemented
or otherwise modified from time to time, and including any agreement entered
into by Bostrom Seating, Inc. and the Security Agent as a replacement
thereof.

 

“Bring Down Borrowing Base Certificate” has the meaning
specified in Section 7.12.

 

“Business Day” means a day of the year on which banks are not
required or authorized by law to close in New York City or in the city in which
the office of the Core Concentration Account Bank is located, and if the
applicable Business Day relates to any LIBOR Advances, on which dealings are
carried on in the London interbank market.

 

“Capital Expenditures” means, for any Person for any period, all
expenditures by such Person which should be capitalized in accordance with GAAP
and, without duplication, the amount of the principal portion of all
Obligations under Capitalized Leases incurred by such Person.

 

“Capitalized Leases” means all leases that have been or should
be, in accordance with GAAP, recorded as capitalized leases.

 

“Cash Collateral Account” has the meaning specified in Section 5.15(d).

 

“Cash Equivalents” means (a) marketable securities (i) issued
or directly and unconditionally guaranteed as to interest and principal by the
United States government or (ii) issued by any agency of the United States
of America the obligations of which are backed by the full faith and credit of
the United States, in each case maturing within 24 months after the date of
acquisition thereof; (b) marketable direct obligations issued by any state
of the United States of America or any political subdivision of any such state
or any public instrumentality thereof, in each case maturing within 12 months
after the date of acquisition thereof and having, at the time of the
acquisition thereof, an investment grade rating generally obtainable from
either S&P or Moody’s; (c) commercial paper maturing no more than 12
months from the date of creation thereof and having, at the time of the
acquisition thereof, a rating of a least A-1 from S&P or at least P-1 from
Moody’s; (d) domestic and eurodollar certificates of deposit or bankers’
acceptances maturing within 12 months after the date of acquisition thereof and
issued or accepted by any Lender or by any other commercial bank organized or
doing business under the laws of the United States or any state thereof or the
District of Columbia that has combined capital and surplus of not less than
$500,000,000; (e) repurchase agreements with a term of not more than
thirty (30) days for underlying securities of the types described in clauses (a) and
(b) above entered into with any commercial bank meeting the requirements
specified in clause (d) above or with any securities dealer of recognized
national standing; (f) shares of investment companies that are registered
under the Investment Company Act of 1940 and that invest solely in one or more
of the types of investments referred to in clauses (a) through (e) above;
and (g) in the case of any Subsidiary which is not a U.S. Person, high
quality, short-term liquid Investments made by such Subsidiary in the ordinary
course of managing its surplus cash position in a manner consistent with past
practices.

 

“Cash Management Agreement” means any agreement to provide (a) cash
management services, including treasury, depository, overdraft, credit or debit
card, electronic 

 

9

 

funds
transfer and other cash management arrangements, (b) commercial credit
card and merchant and purchasing card services, or (c) other banking
products or services as may be requested by any Loan Party, other than Letters
of Credit.

 

“Cash Management Control Agreement” means a “control
agreement” entered into with respect to one or more Deposit Accounts
governed by a Cash Management Control Agreement by and among the Security
Agent, the Senior Secured Noteholder Collateral Agent (if applicable) and the
financial institution and the Loan Party or Loan Parties party to such Cash
Management Control Agreement, which control agreement shall (a) provide
the Security Agent “control” (as defined in Section 9-104 of the UCC) of
such Deposit Accounts, (b) be in form and substance reasonably acceptable
to the Administrative Agent and the Security Agent and (c) contain terms
regarding the treatment of all cash and other amounts on deposit in (or
credited to) such Deposit Account that are consistent with the requirements of Section 5.15.

 

“Cash
Management Creditors” means, collectively, each Lender and/or any Affiliate
thereof that has entered into one or more Secured Cash Management Agreements,
even if such Person is not or subsequently ceases to be a Lender under this
Agreement and/or an Affiliate of a Lender for any reason, together with such
Person’s or their Affiliate’s successors, if any, for so long as such Person or
their Affiliate (or successor thereof) participates in such Secured Cash
Management Agreement.

 

“Cash
Management Obligations” means all obligations and liabilities (other than
Debt) owing by any Loan Party to the Cash Management Creditors, whether now
existing or hereafter incurred under, arising out of or in connection with any
Secured Cash Management Agreement, whether such Secured Cash Management
Agreement is now in existence or hereinafter arising.

 

“CERCLA”
means the Comprehensive Environmental Response, Compensation and Liability Act
of 1980, as amended from time to time.

 

“Change
of Control” means, and shall be deemed to have occurred, if: (a) any “person”
or “group” (as such terms are used in Sections 13(d) and 14(d) of
the Exchange Act shall have 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
30% of the outstanding Voting Stock of the Borrower; and/or (b) at any
time Continuing Directors shall not constitute a majority of the Board of
Directors of the Borrower; and/or (c) a Specified Change of Control shall
occur.  For purposes of this definition, “Continuing
Director” means, as of any date of determination, an individual (i) who
is a member of the Board of Directors of the Borrower on the Closing Date, (ii) who,
as of such date of determination, has been a member of such Board of Directors
for at least the 12 preceding months (or, if such date of determination occurs
during the period comprising the first 12 months after the Closing Date, since
the Closing Date), or (iii) who is recommended by at least a majority of
the then Continuing Directors.

 

“Closing
Date” has the meaning specified in Section 3.01.

 

“Co-Collateral
Agent” and “Co-Collateral Agents” have the meanings specified in the
first paragraph of this Agreement.

 

10

 

“Collateral”
means all “Collateral” referred to in the Collateral Documents and all other
property that is or is intended to be subject to any Lien in favor of the
Administrative Agent for the benefit of the Secured Parties.

 

“Collateral
Documents” means the Intercreditor Agreement, the Guarantee and Collateral
Agreement, any Cash Management Control Agreements, the Mexican Collateral
Documents, the Mortgages and any other agreement that creates or purports to
create a Lien in favor of the Security Agent for the benefit of the Secured
Parties.

 

“Collection
Bank” means the Administrative Agent or any other financial institution
that is (a) selected by the Funds Administrator to act as a collection
bank and (b) reasonably acceptable to the Administrative Agent.

 

“Commingled
Inventory” means Inventory of a Loan Party that is commingled (whether
pursuant to a consignment, a toll manufacturing agreement or otherwise) with
Inventory of another Person (other than another Loan Party) at a location owned
or leased by a Loan Party to the extent that such Inventory of such Loan Party
is not readily identifiable.

 

“Commitment”
means, with respect to any Lender at any time, the amount set forth opposite
such Lender’s name on Schedule I hereto under the caption “Commitment”
or, if such Lender has entered into one or more Assignments and Acceptances,
set forth for such Lender in the Register maintained by the Administrative
Agent pursuant to Section 11.07(d) as such Lender’s “Commitment”,
as such amount may be reduced from time to time as provided herein.  The aggregate principal amount of the
Commitments on the Closing Date is $75,000,000.

 

“Compliance
Period” means any period (x) commencing on the date on which the
Excess Availability is less than or equal to the Availability Condition and (y) ending
on the first date thereafter on which the Excess Availability has been greater
than the Availability Condition for 45 consecutive days.

 

“Confidential
Information” has the meaning specified in Section 11.11(a).

 

“Consolidated”
means the consolidation of financial statements in accordance with GAAP.

 

“Consolidated
Cash Interest Expense” means, with respect to any Person for any period,
the Consolidated Interest Expense of such Person for such period less the sum
of, in each case to the extent included in the definition of Consolidated
Interest Expense, (a) the amortization of any deferred financing costs for
such period, (b) the amortized amount of debt discount and debt issuance
costs for such period, (c) any interest expense actually “paid in kind” or
accreted during such period, (d) charges relating to write-ups or
write-downs in the book or carrying value of existing Consolidated Total Debt
and (e) other non-cash interest.

 

“Consolidated
EBITDA” means, for any period, Consolidated Net Income for such period
(calculated without giving effect to (a) any extraordinary gains or
losses, (b) any gains or losses attributable to any sale, transfer or
other disposition or abandonment of assets (other than Inventory sold in the
ordinary course of business), (c) any income or loss for such

 

11

 

period
attributable to the early extinguishment of Debt or accounts payable, (d) any
non-cash gains or losses on foreign currency derivatives and any foreign
currency transaction non-cash gains or losses and any foreign currency exchange
translation gains or losses that arise on consolidation of integrated
operations, (e) any re-evaluation of Inventory or other assets or any
liabilities due to “fresh start” accounting adjustments upon the Borrower’s
emergence from the Bankruptcy Proceedings and (f) mark-to-market
adjustments in the valuation of derivative obligations resulting from the
application of Statement of Financial Accounting Standards No. 133, Accounting
for Derivative Instruments and Hedging Activities),

 

(a)         plus, in each case to the extent
deducted in determining such Consolidated Net Income, and without duplication,
the amount of:

 

(i)            total interest expense (inclusive of
amortization of deferred financing fees and other original issue discount and
banking fees, charges and commissions (e.g., letter of credit fees and
commitment fees)) of the Borrower and its Subsidiaries for such period;

 

(ii)           provision for taxes based on income
and foreign withholding taxes for the Borrower and its Subsidiaries for such
period;

 

(iii)          all depreciation and amortization
expense of the Borrower and its Subsidiaries for such period;

 

(iv)          restructuring charges or reserves for
such period relating to current or anticipated future cash expenditures
incurred or to be incurred by the Borrower or any Subsidiary in connection with
(A) plant closures and the consolidation, relocation or elimination of
operations and (B) related severance costs and other costs incurred in
connection with the termination, relocation and training of employees
(collectively, “Restructuring Charges”); provided that the
maximum amount of all restructuring charges or reserves that may be included in
EBITDA (x) during the term of this Agreement shall not exceed $25,000,000
in the aggregate or (y) in any consecutive four Fiscal Quarters shall not
exceed $15,000,000 in the aggregate;

 

(v)           any fees and expenses incurred during
such period and related to Investments permitted pursuant to Section 6.05
of this Agreement;

 

(vi)          any deduction for minority interest
expense during such period;

 

(vii)         non-cash charges and expenses (but
excluding any write-downs of current assets or additions to bad debt reserves
or bad debt expense) incurred during such period;

 

(viii)        other non-recurring charges limited to
$2,000,000 in the aggregate in any consecutive four Fiscal Quarters;

 

(ix)           costs and expenses related to the
Bankruptcy Proceedings, including in connection with the termination or
settlement of executory contracts, and professional and accounting fees, costs
and expenses, incurred during such period relating thereto;

 

(x)            upfront fees and expenses paid in
connection with any equity issuance or incurrence of Debt permitted by the
terms of this Agreement (whether or not successful), the 

 

12

 

proceeds
of which are applied (or if unsuccessful, were intended to be applied) to
consummate Permitted Acquisitions or applied towards refinancing of Debt in
accordance with the terms of this Agreement, incurred during such period; and

 

(xi)           the amount of all fees, costs,
expenses, commissions and other cash charges incurred in connection with the
Transaction, incurred during such period;

 

(b)        minus, in each case to the extent
added in determining such Consolidated Net Income, and without duplication,

 

(i)            the
amount of any non-cash income or gains for such period (excluding any non-cash
gain to the extent it represents the reversal of an accrual or reserve for a
potential cash item that reduced Consolidated EBITDA in any prior period); and

 

(ii)           any
credit for United States federal income taxes or other taxes measured by net
income received during such period,

 

in
each case of clauses (a) and (b), determined on a Consolidated basis in
accordance with GAAP.

 

“Consolidated
Fixed Charge Coverage Ratio” means, for any period, the ratio of (a)(i) Adjusted
Consolidated EBITDA for such period minus (ii) the
aggregate amount of all Capital Expenditures made by the Borrower and its Subsidiaries
during such period (other than Capital Expenditures to the extent financed with
the Net Cash Proceeds of any sale or issuance of Equity Interests, the Net Cash
Proceeds of any asset sale, the Net Cash Proceeds of any Recovery Event or the
Net Cash Proceeds of any incurrence of Debt (other than the incurrence of any
Advances), but including Capital Expenditures to the extent financed with
proceeds of Advances to (b) Consolidated Fixed Charges for such period.

 

“Consolidated
Fixed Charges” means, for any period, the sum of (a) any amortization
payments made during such period on all Debt of the Borrower and its
Subsidiaries for such period (including the principal component of all
obligations in respect of all Capitalized Leases) as determined on the first
day of such period (or, with respect to a given issue of Debt incurred
thereafter, on the date of the incurrence thereof) net of the proceeds of any
other Debt the proceeds of which are used to make such payment (other than with
proceeds of Advances), plus (b) Consolidated Cash Interest Expense
of the Borrower and its Subsidiaries for such period, plus (c) the
amount of all cash payments made by the Borrower and its Subsidiaries in
respect of income taxes or income tax liabilities (net of cash income tax
refunds) during such period (excluding such cash payments related to asset
sales not in the ordinary course of business), plus (d) without
duplication of any amounts included in clause (c) above, the aggregate
amount of all cash restricted payments paid by the Borrower as permitted under Section 6.06
for such period, plus (e) the greater of (i) the sum of (x) actual
cash pension funding payments made with respect to pension funding obligations
for such period, minus (y) the profit and loss statement charge (or
benefit) with respect to such pension funding obligations for such period and (ii) zero.

 

“Consolidated
Interest Expense” means, for any period, the sum of (i) the total
Consolidated interest expense of the Borrower and its Subsidiaries for such period
calculated in accordance with GAAP (and without regard to any limitations on
payment thereof), including all

 

13

 

commissions,
discounts and other commitment and banking fees and charges (e.g., fees
with respect to letters of credit, prepayment fees, premiums or discounts) for
such period, and after giving effect to the net amount of payments made or
received by the Borrower and its Subsidiaries with respect to any Hedge
Agreement for such period but excluding any gain or loss recognized under GAAP
that results from any mark-to-market valuation of any Hedge Agreement, (as
adjusted to exclude (to the extent the same would otherwise be included in the
calculation above in this clause (i)) (x) the amortization of any deferred
financing costs (including, without limitation, amortization of original issue
discount) for such period and (y) any interest expense actually “paid in
kind” or accreted during such period) plus (ii) without
duplication, (x) that portion of Capitalized Leases of the Borrower and
its Subsidiaries on a consolidated basis representing the interest factor for
such period and (y) the “deemed interest expense” (i.e., the
interest expense which would have been applicable if the respective obligations
were structured as on-balance sheet financing arrangements) with respect to all
Debt of the Borrower and its Subsidiaries of the type described in clause (viii) of
the definition of Debt contained herein (to the extent the same does not arise
from a financing arrangement constituting an operating lease) for such period.

 

“Consolidated
Net Income” means, for any period, the net income (or loss) of the Borrower
and its Subsidiaries determined on a Consolidated basis of such period (taken
as a single accounting period) in accordance with GAAP, provided that
the following items shall be excluded in computing Consolidated Net Income
(without duplication):  (i) the net
income (or loss) of any Person in which a Person or Persons other than the
Borrower and its Wholly-Owned Subsidiaries has an Equity Interest or Equity
Interests to the extent of such Equity Interests held by a Person or Persons
other than the Borrower and its Wholly-Owned Subsidiaries, (ii) except for
determinations expressly required to be made on a Pro Forma Basis, the net income (or loss) of any Person accrued
prior to the date it becomes a Subsidiary or all or substantially all of the
property or assets of such Person are acquired by a Subsidiary and (iii) the
net income of any Subsidiary to the extent that the declaration or payment of
cash dividends or similar cash distributions by such Subsidiary of such net
income is not at the time permitted by the operation of the terms of its
charter or any agreement, instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to such Subsidiary (except to the extent of
the amount of cash dividends or other cash distributions actually paid by such
Subsidiary during such period which the recipient thereof is legally entitled
to retain based on advice from the Borrower’s counsel, a summary of which is
provided to the Administrative Agent).

 

“Consolidated
Total Debt” means, on any date of determination, the sum of (without
duplication) (i) all Debt of the Borrower and its Subsidiaries (on a
Consolidated basis) that would be required to be reflected as debt or a
Capitalized Lease on the liability side of a consolidated balance sheet of the
Borrower and its Subsidiaries in accordance with GAAP, (ii) all Debt of
the Borrower and its Subsidiaries of the type described in clauses (f) (including
unpaid drawings thereof and reimbursement obligations relating thereto, but
excluding amounts available to be drawn (i.e., unfunded amounts) in respect
thereof, from any such determination) and (h) of the definition of “Debt”
and (iii) all Contingent Obligations of the Borrower and its Subsidiaries
in respect of Debt of any third Person of the type referred to in preceding
clauses (i) and (ii), provided that the amount of Debt in respect
of Hedge Agreements shall be at any time the unrealized net loss position, if
any, of the Borrower and/or its Subsidiaries thereunder on a marked-to-market
basis determined no more than one (1) month prior to such time.

 

14

 

“Contingent
Obligation” shall mean, as to any Person, any obligation of such Person as
a result of such Person being a general partner of any other Person, unless the
underlying obligation is expressly made non-recourse as to such general partner,
and any obligation of such Person guaranteeing or intended to guarantee any
Indebtedness, leases, dividends or other obligations (“primary obligations”)
of any other Person (the “primary obligor”) in any manner, whether
directly or indirectly, including, without limitation, any obligation of such
Person, whether or not contingent, (i) to purchase any such primary
obligation or any property constituting direct or indirect security therefor, (ii) to
advance or supply funds (x) for the purchase or payment of any such
primary obligation or (y) 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 holder of such
primary obligation against loss in respect thereof; provided, however,
that the term Contingent Obligation shall not include endorsements of
instruments for deposit or collection in the ordinary course of business.  The amount of any Contingent Obligation shall
be deemed to be an amount equal to the stated or determinable amount of the
primary obligation in respect of which such Contingent Obligation is made or,
if not stated or determinable, the maximum reasonably anticipated liability in
respect thereof (assuming such Person is required to perform thereunder) as
determined by such Person in good faith.

 

“Conversion”,
“Convert” and “Converted” each refer to a conversion of Advances
of one Type into Advances of the other Type pursuant to Section 2.09
or 2.10.

 

“Core
Concentration Account” has the meaning specified in Section 5.15(c).

 

“Core
Concentration Account Bank” has the meaning specified in Section 5.15(c).

 

“DBSI”
has the meaning specified in the first paragraph of this Agreement.

 

“DBTCA”
has the meaning specified in the first paragraph of this Agreement.

 

“Debt”
of any Person means, without duplication, (a) all indebtedness,
liabilities and obligations 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 and accrued expenses incurred in the
ordinary course of such Person’s business) that in accordance with GAAP would
be shown on the liability side of the balance sheet of such Person, (c) all
Obligations of such Person evidenced by notes, bonds, debentures or other
similar instruments, (d) all Obligations of such Person 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), it being understood that if such Person
has not assumed or otherwise become liable for such Obligations, the amount of
the Debt of such Person in connection therewith shall be limited to the lesser
of the face amount of the related Obligations or the fair market value of all
property of such Person securing such Obligations, (e) all Obligations of
such Person as lessee under Capitalized Leases, (f) all Obligations,
contingent or otherwise, of such Person under acceptance, letter of credit or
similar facilities issued for the account of such Person, (g) all
Obligations of

 

15

 

such
Person in respect of Hedge Agreements, (h) all Off-Balance Sheet
Liabilities of such Person, (i) all Disqualified Equity Interests issued
by such Person with the amount of Debt represented by such Disqualified Equity
Interests being equal to the greater of its voluntary or involuntary liquidation
preference and its maximum fixed repurchase price, but excluding accrued
dividends, if any, (j) all Debt of others referred to in clauses (a) through
(i) above or clause (k) below guaranteed directly or indirectly in
any manner by such Person, or in effect guaranteed directly or indirectly by
such Person through an agreement (i) to pay or purchase such Debt or to
advance or supply funds for the payment or purchase of such Debt, (ii) to
purchase, sell or lease (as lessee or lessor) property, or to purchase or sell
services, primarily for the purpose of enabling the debtor to make payment of
such Debt or to assure the holder of such Debt against loss, (iii) to
supply funds to or in any other manner invest in the debtor (including any
agreement to pay for property or services irrespective of whether such property
is received or such services are rendered) or (iv) otherwise to assure a
creditor against loss; provided that any such guaranteed Obligations
shall not include endorsements of instruments for deposit or collection in the
ordinary course of business, and (k) all Debt referred to in clauses (a) through
(j) above of another Person secured by (or for which the holder of such
Debt has an existing right, contingent or otherwise, to be secured by) any Lien
on property (including, without limitation, accounts and contract rights) owned
by such Person, even though such Person has not assumed or become liable for
the payment of such Debt; provided that the amount of Debt of such
Person under clauses (j) and (k) above shall (subject to any
obligation set forth therein) be deemed to be the principal amount of the Debt
guaranteed or secured thereby and, with respect to any Lien on property of such
Person as described in clause (k) above, if such Person has not assumed or
otherwise become liable for any such Debt, the amount of the Debt of such
Person in connection therewith shall be limited to the lesser of the face
amount of such Debt or the fair market value of all property of such Person
securing such Debt.

 

For
the purposes hereof, the “maximum fixed repurchase price” of any Disqualified
Equity Interests which do not have a fixed repurchase price shall be calculated
in accordance with the terms of such Disqualified Equity Interests as if such
Disqualified Equity Interests were purchased on any date on which Debt shall be
required to be determined pursuant to this Agreement, and if such price is
based upon, or measured by, the fair market value of such Disqualified Equity
Interests, such fair market value to be determined reasonably and in good faith
by the issuer of such Disqualified Equity Interests.  Notwithstanding the foregoing, “Debt” shall
not include trade payables and accrued liabilities incurred in the ordinary
course of business for the purchase of goods or services that are not secured
by a Lien other than a Permitted Lien or a Lien permitted under Section 6.01
and that are not overdue by more than 180 days.

 

“Default”
means any Event of Default or any event that would constitute an Event of
Default but for the requirement that notice be given or time elapse or both.

 

“Defaulted
Advance” means, with respect to any Lender Party at any time, the portion
of any Advance (including any Mandatory Borrowing) required to be made by such
Lender Party to any Co-Borrower pursuant to Section 2.01 or 2.02
at or prior to such time that has not been made by such Lender Party or by the
Administrative Agent for the account of such Lender Party pursuant to Section 2.02(g) as
of such time.  In the event that a
portion of a Defaulted Advance shall be deemed made pursuant to Section 2.15(a),
the remaining portion of

 

16

 

such
Defaulted Advance shall be considered a Defaulted Advance originally required
to be made pursuant to Section 2.01 on the same date as the
Defaulted Advance so deemed made in part.

 

“Defaulted
Amount” means, with respect to any Lender Party at any time, any amount
required to be paid by such Lender Party to the Administrative Agent or any
other Lender Party hereunder or under any other Loan Document at or prior to
such time which has not been so paid as of such time, including, without
limitation, any amount required to be paid by such Lender Party to (a) the
Administrative Agent pursuant to Section 2.02(f) to reimburse
the Administrative Agent for the amount of any Advance made by the
Administrative Agent for the account of such Lender Party, (b) the
Swingline Bank pursuant to Section 2.02(b) to purchase a Pro
Rata Share of a participation in a Swingline Advance made by the Swingline
Bank, (c) an Issuing Bank, either (i) pursuant to Section 2.03(d)(i) to
purchase (as Participant) its Pro Rata Share in any Letter of Credit issued by
such Issuing Bank or (ii) pursuant to Section 2.03(d)(iii) to
fund (as Participant) its Pro Rata Share of any unreimbursed Letter of Credit
Advance made by such Issuing Bank pursuant to any Letter of Credit issued by
such Issuing Bank, (d) any other Lender Party pursuant to Section 2.13
to purchase any participation in Advances owing to such other Lender Party and (e) the
Administrative Agent, the Swingline Bank or an Issuing Bank pursuant to Section 10.05
to reimburse the Administrative Agent, the Swingline Bank or such Issuing Bank
for such Lender Party’s Pro Rata Share of any amount required to be paid by the
Lender Parties to the Administrative Agent, the Swingline Bank or such Issuing
Bank as provided therein.  In the event
that a portion of a Defaulted Amount shall be deemed paid pursuant to Section 2.15(b),
the remaining portion of such Defaulted Amount shall be considered a Defaulted
Amount originally required to be paid hereunder or under any other Loan
Document on the same date as the Defaulted Amount so deemed paid in part.

 

“Defaulting
Lender” means, at any time, any Lender Party that, at such time, (a) (i) owes
a Defaulted Advance or a Defaulted Amount or (ii) has notified the Funds
Administrator, the Administrative Agent, the Swingline Bank or any Issuing
Bank, or has made a general public statement, that it does not intend to comply
with its obligations under Sections 2.01(a), 2.01(b), 2.01(c) or
2.03(d) in circumstances where such non-compliance would constitute
a breach of such Lender’s obligations under the respective Section (other
than any circumstance where any such obligation is the subject of a good faith
dispute with the relevant counterparty to such obligation, until such time as
such dispute is no longer a good faith dispute or it is determined by a final
non-appealable judgment of a court or arbitral tribunal of competent
jurisdiction that the circumstances the subject of the good faith dispute
constitute a breach of obligation by the applicable Lender Party), (b) has
taken any action or become the subject of any action or proceeding of a type
described in Section 9.06 (replacing references therein to any “Subsidiary
of a Loan Party that is not a Debtor” with references to a “Lender”) or has
notified the Funds Administrator, the Administrative Agent, the Swingline Bank
or any Issuing Bank of the same or (c) has had appointed for it a
receiver, custodian, conservator, trustee, administrator, assignee for the
benefit of creditors or similar Person charged with reorganization or
liquidation of its business or assets, including the Federal Deposit Insurance
Corporation or any other Governmental Authority, or such Lender Party shall
notify the Funds Administrator, the Administrative Agent, the Swingline Bank or
any Issuing Bank of the same provided, that a Lender shall not be a Defaulting
Lender solely by virtue of the ownership or acquisition of any equity interest
in that Lender or any direct or indirect parent company thereof by a
Governmental Authority; provided that, for purposes of (and only for
purposes of) Section 2.03(d) and Section

 

17

 

2.15(e) and any
documentation entered into pursuant to the Back-Stop Arrangements (and the term
“Defaulting Lender” as used therein), the term “Defaulting Lender”
shall also include, as to any Lender, at such time (i) any Affiliate of such
Lender that has “control” (within the meaning provided in the definition
of “Affiliate”) of such Lender that is deemed to have, or has, become the
subject of any action or proceeding of a type described in Section 9.06
(replacing references therein to any “Subsidiary of a Loan Party that is not a
Debtor” with references to a “Lender”), or has had appointed for it a receiver,
custodian, conservator, trustee, administrator, assignee for the benefit of
creditors or similar Person charged with reorganization or liquidation of its
business or assets, including the Federal Deposit Insurance Corporation or any
other Governmental Authority, or does not meet a capital adequacy or liquidity
requirement applicable to such Affiliate as determined by the relevant Governmental
Authority provided, that a Lender shall not be a Defaulting Lender solely by
virtue of the ownership or acquisition of any equity interest in that Lender or
any direct or indirect parent company thereof by a Governmental Authority, (ii) that
Lender, if that Lender has previously cured a “Defaulted Advance” or a “Defaulted
Amount” under this Agreement, unless such “Defaulted Advance” or “Defaulted
Amount” has been cured and has subsequently ceased to exist for a period of
at least ninety (90) consecutive days prior to such time, (iii) that
Lender, if it is in default with respect to its obligations under any other
credit facility to which it is a party and which the Administrative Agent, the
Swingline Bank or any Issuing Bank believes in good faith has occurred and is
continuing, and (iv) that Lender, if that Lender has failed to make
available its portion of any Advance or to fund its portion of any unreimbursed
payment with respect to a Letter of Credit pursuant to Section 2.03(d)(iii) within
one (1) Business Day of the date (x) the Administrative Agent (in its
capacity as a Lender) or (y) Lenders constituting the Majority Lenders has
or have, as applicable, funded its or their portion thereof.

 

“Deposit
Account” means a demand, time, savings, passbook or like account
established by a Loan Party with a bank, savings and loan association, credit
union or like organization located in the United States or a state thereof or
the District of Columbia.

 

“Dilution”
means, as of any date of determination, as to the Accounts owned by the Loan
Parties, a percentage, based upon the experience of the immediately prior
twelve (12) consecutive months (provided that prior to April 2011, such
period shall be for the months commencing with April 2010 and ending with
the most recently ended month), that is the result of dividing the U.S. Dollar
amount (or the U.S. Dollar Equivalent of any amounts not denominated in U.S.
Dollars) of (a) bad debt write downs, discounts, advertising allowances,
credits, volume or other rebates, returns, chargebacks, aged credits or other
dilutive items with respect to such Accounts during such period, by (b) billings
with respect to such Accounts during such period.

 

“Dilution
Reserve” means, as of any date of determination, as to the Accounts owned
by the Co-Borrowers, an amount equal to the product of (a) the amount (if
positive), expressed as a percentage, by which Dilution of the Accounts owned
by the Co-Borrowers exceeds 5.00% and (b) the Eligible Accounts owned by
the Co-Borrowers.

 

“Disbursement
Account” means each Deposit Account maintained by a Loan Party for its
general corporate purposes, including for the purpose of paying trade payables
and other operating expenses (other than a disbursement account that is an
Excluded Account).

 

18

 

“Discharge
of Senior Secured Notes Obligations” has the meaning specified in the
Intercreditor Agreement.

 

“Disqualified
Equity Interest” means any Equity Interest which, by its terms (or by the
terms of any security into which it is convertible or for which it is
exchangeable), or upon the happening of any event (other than an event which
would constitute a Change of Control), (a) matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or is
redeemable at the sole option of the holder thereof, in whole or in part, on a
date on or prior to six months after the Termination Date, in each case, other
than a maturity or redemption that entitles the holder of such Equity Interest
to receive common stock of the Borrower as sole consideration upon maturity or
redemption, or (b) is convertible into or exchangeable for (whether at the
option of the issuer or the holder thereof) (i) debt securities or (ii) any
Equity Interests referred to in clause (a) above, in each case at any time
on a date on or prior to six months after the Termination Date; provided
that only the portion of Equity Interests that so matures or is mandatorily
redeemable, is so convertible or exchangeable or is so redeemable at the option
of the holder thereof prior to such date shall be deemed to be Disqualified
Equity Interests.

 

“Dominion
Period” means any period (a) commencing on the date on which
(i) an Event of Default has occurred and is continuing or (ii) the
Excess Availability is less than or equal to the Availability Condition and (b) ending
on the first date thereafter on which (i) no Event of Default exists and (ii) the
Excess Availability has been greater than the Availability Condition for 45
consecutive days.

 

“Eligible
Account” means, at any time, the Accounts originated by a Co-Borrower in
the ordinary course of its business, that arise out of its bona fide sale of
goods (other than promotional products) or rendition of services substantially
in accordance with the provisions of any purchase order, contract or other
document relating thereto, that comply in all material respects with each of
the representations and warranties relating to Eligible Accounts made in the
Loan Documents; provided, however, that Accounts originated by
Bostrom Seating, Inc. or Brillion Farms, a division of Brillion Iron Works, Inc.
shall only be included as “Eligible Accounts” upon the Co-Collateral Agents’
satisfaction with an auditor report in respect of the Accounts delivered to the
Co-Collateral Agents after the Closing Date. 
The Co-Collateral Agents shall have the right to establish, modify or
eliminate reserves against Eligible Accounts from time to time in their
Permitted Discretion including the right to modify or amend the exclusions set
forth below. Promptly after determining that any such exercise of their
Permitted Discretion is necessary or desirable, the Co-Collateral Agents shall
use commercially reasonable efforts to consult with the Funds Administrator as
to the need to take such action, it being understood that Co-Collateral Agents’
failure to consult shall not in any way restrict the Co-Collateral Agents from
taking such action or impose any liability on the Co-Collateral Agents as a
consequence of such failure.  Without
limiting the Co-Collateral Agents’ discretion provided herein, Eligible
Accounts shall not include any Account:

 

(a)                                  which is (i) not
subject to a first priority perfected Lien in favor of the Security Agent for
the benefit of the Secured Parties and (ii) subject to any Lien other than
(x) a second priority Lien in favor of the Senior Secured Noteholder
Collateral Agent on behalf of the Senior Secured Noteholders

 

19

 

and
(y) a Permitted Lien which does not have priority over the Lien in favor
of the Security Agent for the benefit of the Secured Parties or the Senior
Secured Noteholder Collateral Agent for the benefit of the Senior Secured
Noteholders;

 

(b)                                 (i) with respect to
which the scheduled due date is more than ninety (90) days after the original
invoice date (provided that the aggregate Accounts with a scheduled due
date more than ninety (90) days after the original invoice date shall not, at
any time, exceed $5,000,000), (ii) is unpaid more than sixty (60) days
after the original due date, or (iii) which has been written off the books
of the Co-Borrower or otherwise designated as uncollectible;

 

(c)                                  which is owing by an Account
Debtor for which more than 50% of the Accounts owing from such Account Debtor
(and its Affiliated Account Debtors) are ineligible under clause (b) above;

 

(d)                                 which (i) does not
arise from the sale of goods or performance of services in the ordinary course
of business, (ii) is not evidenced by an invoice or other documentation
which has been sent to the Account Debtor, (iii) represents a progress
billing, (iv) is contingent upon any Co-Borrower’s completion of any
further performance, (v) represents a sale on a bill-and-hold, guaranteed
sale, sale-and-return, sale on approval, consignment, cash-on-delivery or any
other repurchase or return basis, (vi) relates to payments of interest, or
(viii) includes any other terms by reason of which the payment by an
Account Debtor may be conditional;

 

(e)                                  for which the goods giving rise
to such Account have not been shipped (or have been shipped on terms such that
title to such goods has not passed to the Account Debtor) and billed to the
Account Debtor or for which the services giving rise to such Account have not
been performed and billed by a Co-Borrower or if such Account was invoiced more
than once;

 

(f)                                    with respect to which (i) any
check or other instrument of payment has been returned uncollected for any
reason or (ii) any return, rejection or repossession of any of the merchandise
giving rise to such Account has occurred, but only to the extent of the value
of the check returned uncollected or the goods returned, rejected or
repossessed;

 

(g)                                 which is owed by an Account
Debtor which has (i) applied for, suffered, or consented to the
appointment of any receiver, custodian, trustee, or liquidator of its assets, (ii) has
had possession of all or a material part of its property taken by any receiver,
custodian, trustee or liquidator, (iii) filed, or had filed against it,
any request or petition for liquidation, reorganization, arrangement,
adjustment of debts, adjudication as bankrupt, winding-up, or voluntary or
involuntary case under any state, provincial or federal bankruptcy laws, (iv) has
admitted in writing its

 

20

 

inability,
or is generally unable to, pay its debts as they become due, (v) become
insolvent or (vi) ceased operation of its business;

 

(h)                                 which is owed by any Account
Debtor which has sold all or a substantially all of its assets;

 

(i)                                     which is (i) owed by an
Account Debtor which is not a Governmental Authority, and which (A) does
not maintain its chief executive office in an Applicable Eligible Jurisdiction
(provided that with respect to Accounts owed by an Account Debtor which
maintains its chief executive office in Canada, the aggregate value of Accounts
which may be included in the Borrowing Base as Eligible Accounts shall not, at
any time, exceed $7,500,000) and (B) is not organized under applicable law
of the U.S., Canada or any political subdivision thereof or (ii) designated
for payment collection in Canada or any other jurisdiction outside the U.S.;

 

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

 

(k)                                  which is owed by (i) any
Governmental Authority of any country other than the U.S., unless (x) such
Account is supported by an irrevocable letter of credit satisfactory to the
Security Agent (as to form, substance and issuer or domestic confirming bank),
such letter of credit has been delivered to the Security Agent and may be drawn
directly by the Security Agent and the Security Agent has a first priority
perfected security interest in such letter of credit and the related
letter-of-credit rights and supporting obligations (each as defined in the UCC)
or (y) such Account is covered by credit insurance in form, substance, and
amount, and by an insurer, satisfactory to the Security Agent or (ii) any
Governmental Authority of the U.S., unless the Federal Assignment of Claims Act
of 1940, as amended (31 U.S.C. § 3727 et  seq. and 41 U.S.C. § 15 et
seq.) and any other steps necessary to perfect the Lien of the Security
Agent for the benefit of the Secured Parties in such Account have been complied
with to the Security Agent’s satisfaction;

 

(l)                                     which is owed by any
Affiliate, employee, officer, director or stockholder of any Co-Borrower;

 

(m)                               which (i) is owed by an
Account Debtor or any Affiliate of such Account Debtor which is a creditor of
any Co-Borrower or has disputed its obligation to pay all or any portion of the
Account or (ii) is subject to any security, deposit (including any pallet
deposit), progress payment, retainage, set-off, chargeback or other similar
advance made by or for the benefit of an Account Debtor, in each case only to
the extent (including, without limitation, with respect to rebates, including
cash rebates) of such creditor claim or amount in dispute or to the extent of
such security,

 

21

 

deposit
(including any pallet deposit), progress payment, retainage, set-off,
chargeback or other similar advance;

 

(n)                                 which is subject to any
counterclaim, deduction, defense, setoff or dispute but only to the extent of
any such counterclaim, deduction, defense, setoff or dispute;

 

(o)                                 which is evidenced by any
promissory note, chattel paper, or instrument;

 

(p)                                 which was partially paid and
the Co-Borrower to whom such Account was owed created a new receivable for the
unpaid portion of such Account, unless such new receivable is treated as having
been issued on the original invoice date;

 

(q)                                 which does not comply in all
material respects with the requirements of all applicable laws and regulations,
whether Federal, state or local, including without limitation the Federal
Consumer Credit Protection Act, the Federal Truth in Lending Act and Regulation
Z of the Board of Governors of the Federal Reserve System of the United States;

 

(r)                                    which is for goods that have
been sold under a purchase order or pursuant to the terms of a contract or other
agreement or understanding (written or oral) that indicates or purports that
any Person other than the Co-Borrower that originated such Account has or has
had an ownership interest in such goods, or which indicates any party other
than such Co-Borrower as payee or remittance party;

 

(s)                                  which was created on cash on
delivery terms;

 

(t)                                    with respect to which the
applicable Co-Borrower has made any agreement with any Account Debtor (i) for
any deduction therefrom, except for (x) volume discounts and discounts or
allowances for prompt payment, all of which discounts or allowances are
reflected in the calculation of the face value of each respective invoice
related thereto or such discount or allowances are paid on a regular periodic
basis and (y) returns, rebates or credits reflected in the calculation of
the face value of each such invoice (in each case, only to the extent of such
discount, allowance, return, rebate or credit) or (ii) for any adjustment,
extension, compromise or settlement thereof, except for adjustments,
extensions, compromises and settlements made in the ordinary course of business
(and not related to the creditworthiness of the Account Debtor);

 

(u)                                 which have not been invoiced
or which are not for a sum certain;

 

(v)                                 for which credit insurance
has been requested by a Co-Borrower and denied;

 

(w)                               which is not payable to any
Co-Borrower;

 

22

 

(x)                                   with respect to
which the agreements evidencing such Accounts are not governed by the laws of a
jurisdiction which is not an Applicable Eligible Jurisdiction for the Accounts
of such Co-Borrower;

 

(y)                                 which
represents service charges or late fees;

 

(z)                                   of any Account
Debtor (and its Affiliated Account Debtors) to the extent and only to the
extent whose Accounts in aggregate owing to the Co-Borrowers exceed 15% of the
aggregate amount of all Accounts of the Co-Borrowers (or, in the case of those
Account Debtors (collectively with their respective Affiliated Account Debtors)
listed on Schedule 1.01(a), the respective percentage of the aggregate
amount of all Accounts of the Co-Borrowers set forth opposite the names of such
Account Debtors (and their respective Affiliated Account Debtors) on Schedule
1.01(a), provided that any such percentages set forth in such
Schedule as applied to a particular Account Debtor (and its Affiliated Account
Debtors) is subject to reduction by the Co-Collateral Agents, in their
Permitted Discretion, if the creditworthiness of such Account Debtor (and its
Affiliated Account Debtors) materially deteriorates; provided, further
that at the request of the Funds Administrator, and with the consent of the
Co-Collateral Agents, the names of additional Account Debtors (and their
respective Affiliated Account Debtors) may be added to Schedule 1.01(a)
from time to time.

 

All
percentage limitations set forth above shall apply on an aggregate basis as
among all Accounts whether owing to the Borrower or any another
Co-Borrower.  In the event that an
Account which was previously an Eligible Account ceases to be an Eligible
Account hereunder, the Co-Borrower to whom such Account was owed or the Funds
Administrator shall notify the Administrative Agent, the Co-Collateral Agents
and the Security Agent thereof on and at the time of submission to the
Administrative Agent, the Co-Collateral Agents and the Security Agent of the
next Borrowing Base Certificate.

 

“Eligible
Assignee” means (a) (i) a Lender, (ii) an Affiliate of a Lender or a
Related Fund of a Lender, (iii) a commercial bank organized under the laws of
the United States, or any State thereof, and having total assets of at least
$3,000,000,000, (iv) a savings and loan association or savings bank organized
under the laws of the United States, or any State thereof, and having total
assets of at least $3,000,000,000, (v) a commercial bank organized under the
laws of any other country that is a member of the OECD or has concluded special
lending arrangements with the International Monetary Fund associated with its
General Arrangements to Borrow, or a political subdivision of any such country,
and having total assets in excess of $3,000,000,000, so long as such bank is
acting through a branch or agency located in the United States, (vi) the
central bank of any country that is a member of the OECD, (vii) a finance
company, insurance company or other financial institution or fund (whether a
corporation, partnership, trust or other entity) that is engaged in making,
purchasing or otherwise investing in commercial loans in the ordinary course of
its business and having total assets in excess of $250,000,000, and (viii) any
other Person approved by the Administrative Agent and, so long as no Event of
Default has occurred and is continuing, the Funds Administrator, in each case
such approval not to be unreasonably withheld or delayed and (b) with
respect to the Issuing Bank, a

 

23

 

Person
that is an Eligible Assignee under subclause (ii), (iii) or (v) of clause (a)
of this definition and is approved by the Administrative Agent and, so long as
no Event of Default has occurred and is continuing, the Funds Administrator, in
each case such approval not to be unreasonably withheld or delayed; provided,
however, that no Person that is a Loan Party or an Affiliate of a Loan
Party shall qualify as an Eligible Assignee under this definition.

 

“Eligible
Inventory” means, at any time, all of the Inventory owned by a Co-Borrower
reflected in the most recent Borrowing Base Certificate delivered by the Funds
Administrator to the Administrative Agent, the Co-Collateral Agents and the
Security Agent, that complies in all material respects with each of the
representations and warranties relating to Eligible Inventory made in the Loan
Documents; provided, however, that Inventory owned by either
Bostrom Seating, Inc. or Brillion Farms, a division of Brillion Iron Works,
Inc. shall only be included as “Eligible Inventory” upon the Co-Collateral
Agents’ satisfaction with an appraisal of Inventory and a field examination
report in respect of the Inventory delivered to the Co-Collateral Agents after
the Closing Date.  The Co-Collateral
Agents shall have the right to establish, modify or eliminate reserves against
Eligible Inventory from time to time in their Permitted Discretion including
the right to modify or amend the exclusions set forth below.  Promptly after determining that any such
exercise of their Permitted Discretion is necessary or desirable, the
Co-Collateral Agents shall use commercially reasonable efforts to consult with
the Funds Administrator as to the need to take such action, it being understood
that Co-Collateral Agents’ failure to consult shall not in any way restrict the
Co-Collateral Agents from taking such action or impose any liability on the
Co-Collateral Agents as a consequence of such failure.  Without limiting the Co-Collateral Agents’
discretion provided herein, Eligible Inventory shall not include any Inventory:

 

(a)                          which is (i)
not subject to a first priority perfected Lien in favor of the Security Agent
for the benefit of the Secured Parties and (ii) subject to any Lien other than
(x) a second priority Lien in favor of the Senior Secured Noteholder Collateral
Agent on behalf of the Senior Secured Noteholders and (y) a Permitted Lien
which does not have priority over the Lien in favor of the Security Agent for
the benefit of the Secured Parties or the Senior Secured Noteholder Collateral
Agent for the benefit of the Senior Secured Noteholders or otherwise is granted
in favor of bailees, landlords, suppliers, mechanics, carriers, freight
handlers, freight forwarders, shippers, materialmen, warehousemen and workmen
to the extent permitted by the provisions of this Agreement (it being
understood and agreed that the Co-Collateral Agents in their Permitted
Discretion may establish Availability Reserves for the estimated amount of any
claims secured by such Liens referred to in this clause (y));

 

(b)                         which is, based
upon the most recent Appraisal Report received by the Co-Collateral Agents,
slow moving, obsolete, unmerchantable, defective, used, unfit for sale, not
salable at prices approximating at least the cost of such Inventory in the
ordinary course of business or unacceptable due to age, type, category,
quantity and/or (without double-counting) subject to management reserves;

 

24

 

(c)                          which does not
conform to all standards imposed by any Governmental Authority;

 

(d)                         in which any
Person other than the applicable Co-Borrower shall (i) have any direct or
indirect ownership, interest or title to such Inventory or (ii) be indicated on
any purchase order or invoice with respect to such Inventory as having or
purporting to have an interest therein (including the rights of a purchaser
that has made progress payments and the rights of a surety that has issued a
bond to assure the applicable Co-Borrower’s performance with respect to that
Inventory);

 

(e)                          which is not
Finished Goods, Work-in-Process or Raw Materials, or which constitutes spare or
replacement parts, subassemblies, packaging and shipping material,
manufacturing supplies, samples, prototypes, displays or display items,
bill-and-hold goods, repossessed goods, defective or damaged goods, goods held
on consignment, or goods which are not of a type held for sale in the ordinary
course of business;

 

(f)                            which is not
located in the U.S. or Canada;

 

(g)                         which (i) is
located with a vendor, a customer of a Co-Borrower or its Affiliates or on a
property owned or leased by any of the foregoing, (ii) is not located on
premises owned, leased or rented by a Co-Borrower unless, in the case of leased
or rented premises, either (x) a Third Party Agreement has been delivered to the
Co-Collateral Agents and the Security Agent or (y) a Rent Reserve reasonably
satisfactory to the Co-Collateral Agents has been established with respect
thereto, (iii) is stored with a bailee at a leased location, unless, either (x)
a Third Party Agreement has been delivered to the Co-Collateral Agents and the
Security Agent or (y) a Rent Reserve reasonably satisfactory to the
Co-Collateral Agents has been established with respect thereto, (iv) is
stored with a bailee or warehouseman, unless, either (x) a Third Party
Agreement has been received by the Co-Collateral Agents and the Security Agent
or (y) a Rent Reserve reasonably satisfactory to the Co-Collateral Agents has
been established with respect thereto or (v) is located at an owned location
subject to a mortgage or other security interest in favor of a creditor other
than the Security Agent or the Senior Secured Noteholder Collateral Agent,
unless a Third Party Agreement has been delivered to the Co-Collateral Agents
and the Security Agent;

 

(h)                         is covered by a
negotiable document of title or warehouse receipt unless all actions have been
taken to create and perfect a first priority Lien in favor of the Security
Agent in such document of title or warehouse receipt and the Inventory covered
thereby, including, without limitation, the delivery to the Security Agent or
an agent thereof of such document of title and warehouse receipt with all
necessary endorsements;

 

25

 

(i)                             unless a Third
Party Agreement has been delivered to the Security Agent with respect to the
applicable location or processor, Inventory which is being processed offsite at
a third party location or outside processor;

 

(j)                             is in transit,
except for Inventory that is in transit (i) between locations in an Applicable
Eligible Jurisdiction owned, leased (provided a Third Party Agreement is in
place in respect of such leased location) or otherwise controlled by the
Co-Borrowers to the satisfaction of the Co-Collateral Agents in their Permitted
Discretion, to the extent included in current perpetual inventory reports of
any Co-Borrower or (ii) from an Account Debtor of a Co-Borrower to a location
in an Applicable Eligible Jurisdiction controlled by such Co-Borrower so long
as an Availability Reserve has been established by the Co-Collateral Agents in
their Permitted Discretion (or a contra account is established to reduce the
amount owed by such Account Debtor) for the accounts payable of such
Co-Borrower with respect to such Inventory in transit);

 

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

 

(l)                             which is the
subject of a consignment by a Co-Borrower as consignor;

 

(m)                       which contains
or bears any intellectual property rights licensed to a Co-Borrower unless the
Co-Collateral Agents are satisfied that such Co-Borrower may sell or otherwise
dispose of such Inventory without (i) infringing the rights of such licensor,
(ii) violating any contract with such licensor, or (iii) incurring any
liability with respect to payment of royalties other than royalties incurred
pursuant to sale of such Inventory under the current licensing agreement;

 

(n)                         which is not
reflected in a current perpetual inventory report of the applicable Co-Borrower
(unless such Inventory is reflected in a report to the Co-Collateral Agents as “in
transit” Inventory, provided that such Inventory shall be subject to the
requirements of paragraphs (j) of this definition);

 

(o)                         for which
reclamation rights have been asserted by the seller;

 

(p)                         which consists
of any gross profit mark-up in connection with the sale and distribution
thereof to any division of any Co-Borrower or to any Affiliate of any
Co-Borrower;

 

(q)                         which consists
of goods that have been returned or rejected by the buyer or marked for return
and which (x) are damaged or defective or (y) which are otherwise not in a
condition fit for re-sale as “new” upon being returned;

 

(r)                            which is
subject to any down payment or security deposit (to the extent of an amount
equal to the value of such down payment or security deposit, provided
that the value of such Inventory excluding the amount of such down payment or
security deposit shall be included in Eligible Inventory);

 

26

 

(s)                          which is not of
a type held for sale in the ordinary course of any Co-Borrower’s business;

 

(t)                            which is
Commingled Inventory;

 

(u)                         which is
subject to a license agreement, a private label agreement or other similar
arrangement with a third party which, in the Co-Collateral Agents’
determination, restricts the ability of the Security Agent to exercise its
rights under the Loan Documents with respect to such Inventory unless such
third party has entered into an agreement in form and substance reasonably
satisfactory to the Co-Collateral Agents permitting the Security Agent to
exercise its rights with respect to such Inventory or the Co-Collateral Agents
have otherwise agreed to allow such Inventory to be eligible in the
Co-Collateral Agents’ Permitted Discretion;

 

(v)                         which is not
covered by casualty insurance as required by the terms of this Agreement;

 

(w)                       which consists
of Hazardous Materials or goods that can be transported or sold only with
licenses that are not readily available;

 

(x)                           which (i) the
value of which on the Inventory is reduced by any ledger reserve or (ii) any
capitalized variance to standard cost is maintained with respect thereto, but
in each case, only to the extent of such reserve or variance which is in effect
with respect thereto;

 

(y)                         the
manufacturing or distribution of which was not in material compliance with
applicable law, including the FLSA; or

 

(z)                           which consists
of core (maintenance) inventory.

 

In
the event that Inventory which was previously Eligible Inventory ceases to be
Eligible Inventory hereunder, the Co-Borrower that owns such Inventory or the
Funds Administrator shall notify the Administrative Agent, the Co-Collateral
Agents and the Security Agent thereof on and at the time of submission to the
Administrative Agent, the Co-Colleteral Agents and the Security Agent of the
next Borrowing Base Certificate.

 

“Enforcement
Action” means, with respect to the Obligations to the Administrative Agent,
the Co-Collateral Agents, the Security Agent and the other Lender Parties under
the Loan Documents, any demand for payment or acceleration thereof, the
exercise of any rights and remedies with respect to any Collateral securing
such Obligations or the commencement or prosecution of enforcement of any of
the rights and remedies hereunder or under any other Loan Documents, or applicable
law, including without limitation the exercise of any rights of set-off or
recoupment, and the exercise of any rights or remedies of a secured creditor
under the UCC of any applicable jurisdiction or under the Bankruptcy Code.

 

“Environmental
Action” means any action, suit, demand, demand letter, claim, notice of
non-compliance or violation, notice of liability or potential liability,
investigation,

 

27

 

proceeding,
consent order or consent agreement relating in any way to any Environmental
Law, any Environmental Permit or Hazardous Material or arising from alleged
injury or threat to health, safety or the environment, including, without
limitation, (a) by any governmental or regulatory authority for enforcement,
cleanup, removal, response, remedial or other actions or damages and (b) by any
governmental or regulatory authority or third party for damages, contribution,
indemnification, cost recovery, compensation or injunctive relief.

 

“Environmental
Law” means any federal, state, local or foreign statute, law, ordinance,
rule, regulation, code, order, writ, judgment, injunction, decree or judicial
or agency interpretation, policy or guidance relating to pollution or
protection of the environment, health, safety or natural resources, including,
without limitation, those relating to the use, handling, transportation,
treatment, storage, disposal, release or discharge of Hazardous Materials.

 

“Environmental
Permit” means any permit, approval, identification number, license or other
authorization required under any Environmental Law.

 

“Equity
Interests” means, with respect to any Person, shares of capital stock of
(or other ownership or profit interests in) such Person, warrants, options or
other rights for the purchase or other acquisition from such Person of shares
of capital stock of (or other ownership or profit interests in) such Person,
securities convertible into or exchangeable for shares of capital stock of (or
other ownership or profit interests in) such Person or warrants, rights or
options for the purchase or other acquisition from such Person of such shares
(or such other interests), and other ownership or profit interests in such
Person (including, without limitation, partnership, member or trust interests
therein), whether voting or nonvoting, and whether or not such shares,
warrants, options, rights or other interests are authorized or otherwise
existing on any date of determination.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time
to time.  Section references to ERISA are
to ERISA as in effect at the date of this Agreement and any subsequent
provisions of ERISA amendatory thereof, supplemental thereto or substituted
therefor.

 

“ERISA
Affiliate” means each person (as defined in Section 3(9) of ERISA)
that together with any Loan Party would be deemed to be a “single employer”
within the meaning of Section 414(b) or (c) of the Internal
Revenue Code or, solely for purposes of Section 302 of ERISA and
Section 412 of the Internal Revenue Code, is treated as a single employer
under Section 414 of the Internal Revenue Code.

 

“Eurocurrency
Liabilities” has the meaning specified in Regulation D of the Board of
Governors of the Federal Reserve System, as in effect from time to time.

 

“Events
of Default” has the meaning specified in Section 9.

 

“Excess
Availability” means, as of any date of determination, the remainder of
(a) the lesser of (i) the Borrowing Base at such time (calculated by
reference to the most recent Borrowing Base Certificate delivered by the Funds
Administrator pursuant to Section 7.12, as the same may be subsequently
adjusted by (x) the establishment of any additional Availability Reserves or
the modification of any existing Availability Reserves, (y) any modification to

 

28

 

Eligible
Accounts or Eligible Inventory or (z) any other exercise by the Co-Collateral
Agents of their Permitted Discretion, in each case in accordance with the terms
of this Agreement after the date of such Borrowing Base Certificate, as
notified by the Co-Collateral Agents to the Funds Administrator) and (ii) the
Total Commitment at such time, minus (b) the Aggregate Exposure at such
time.

 

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

 

“Excluded
Accounts” means, collectively, (a) Deposit Accounts established solely for
(i) payroll, (ii) tax payments, (iii) employee benefit programs or (iv) payment
of medical and dental expenses in connection with health insurance programs for
employees of the Borrower and the other Loan Parties, (b) petty cash accounts
established (or otherwise maintained) by the Loan Parties that do not have cash
balances at any time exceeding $100,000 for any such petty cash account, (c)
fiduciary accounts and (d) trust accounts; provided that in no event
shall Excluded Accounts include any Cash Collateral Accounts, Disbursement
Accounts (other than those included in clause (a) above), Core Concentration
Accounts, Lockbox Accounts or any other account pursuant to which a Cash
Management Control Agreement or any other account control agreement has been
executed and delivered to the Security Agent pursuant to this Agreement or any
Collateral Document.

 

“Executive
Order” has the meaning set forth in the definition of “Anti-Terrorism Laws.”

 

“Existing
Borrowers” has the meaning set forth in the preliminary statement (1) to
this Agreement.

 

“Existing
Credit Agreement” means that certain Fifth Amended and Restated Credit
Agreement, dated as of February 26, 2010 among the Existing Borrowers, the
lenders party thereto from time to time, and DBTCA, as administrative agent.

 

“Existing
Debt” means all Debt of the Borrower and its Subsidiaries that is
identified on Schedule 4.01(s).

 

“Existing
Senior Convertible Notes” means the 7.5% Convertible Notes issued pursuant
to the Existing Senior Convertible Notes Indenture.

 

“Existing
Senior Convertible Notes Documents” means the Existing Senior Convertible
Notes, the Existing Senior Convertible Notes Indenture and all other documents
executed and delivered with respect to the Existing Senior Convertible Notes or
Existing Senior Convertible Notes Indenture, as in effect on the Closing Date
and as the same may be amended, modified and/or supplemented from time to time
in accordance with the terms hereof and thereof.

 

“Existing
Senior Convertible Notes Indenture” means the indenture, dated February 26,
2010, entered into by the Borrower in connection with the issuance of the
Existing Senior Convertible Notes, together with all instruments and other
agreements entered into by the Borrower and the Subsidiaries that are
guarantors of the Existing Senior Convertible Notes in

 

29

 

connection
therewith, as the same may be amended, supplemented or otherwise modified from
time to time in accordance with Section 6.08.

 

“Facility”
means the asset based revolving credit facility provided under this Agreement.

 

“FASB ASC 825” means Financial Accounting Standards Board Accounting
Standards Codification 825 (which replaces and supersedes FAS (“Financial
Accounting Standard”) 159).

 

“FATCA” means Section 1471 through 1474 of the Internal Revenue
Code, and any Treasury Regulation promulgated thereunder or published
administrative guidance implementing such Sections.

 

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

 

“Fee
Letters” means the letter agreements dated as of the date of this
Agreement, by and among the Lead Arrangers, the Administrative Agent and the
Borrower.

 

“Finished
Goods” means completed goods which require no additional processing or
manufacturing to be sold to third party customers by the Loan Parties in the ordinary
course of business.

 

“Fiscal
Quarter” means any fiscal quarter of the Borrower and its Consolidated
Subsidiaries that occurs within any Fiscal Year.

 

“Fiscal
Year” means a fiscal year of the Borrower and its Consolidated Subsidiaries
ending on December 31 in any calendar year.

 

“FLSA”
means the Fair Labor Standards Act of 1938, as amended from time to time.

 

“Foreign
Government Scheme or Arrangement” has the meaning specified in Section 4.01(m)(ii).

 

“Foreign
Plan” has the meaning specified in Section 4.01(m)(ii).

 

“Foreign
Subsidiary” means any Subsidiary of the Borrower that is a corporation
organized under the laws of any jurisdiction other than the United States or
any state thereof.

 

30

 

“Funds
Administrator” shall mean the Borrower in its capacity as borrowing agent
and funds administrator for the Co-Borrowers hereunder and under each of the
other Loan Documents.

 

“GAAP”
means generally accepted accounting principles in the United States set forth from
time to time in the opinions and pronouncements of the Accounting Principles
Board and the American Institute of Certified Public Accountants and statements
and pronouncements of the Financial Accounting Standards Board (or agencies
with similar functions of comparable stature and authority within the
accounting profession), which are applicable to the circumstances as of the
date of determination, subject to Section 1.03 hereof.

 

“Governmental
Authority” means the government of the United States of America, any other
nation or, in each case, any political subdivision thereof, whether state,
provincial or local, and any agency, authority, instrumentality, regulatory
body, court, central bank or other entity exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

 

“Guarantee
and Collateral Agreement” means the Guarantee and Collateral Agreement,
dated as of the date hereof, among the Borrower, each Subsidiary Guarantor and
the Security Agent, substantially in the form of Exhibit I, as such
agreement may be amended, supplemented or otherwise modified from time to time.

 

“Hazardous
Materials” means (a) petroleum or petroleum products, by-products or
breakdown products, radioactive materials, asbestos-containing materials,
polychlorinated biphenyls and radon gas and (b) any other chemicals, materials
or substances designated, classified or regulated as hazardous or toxic or as a
pollutant or contaminant under any Environmental Law.

 

“Hedge
Agreements” means interest rate swap, cap or collar agreements, interest
rate future or option contracts, currency swap agreements, currency future or
option contracts, commodities future or option contracts for materials used in
the ordinary course of business and other similar agreements.

 

“Hedging
Reserve” means a reserve established by the Co-Collateral Agents from time
to time in their Permitted Discretion in respect of any Approved Hedge
Agreement Obligations, which reserve shall be in the amount of the aggregate
marked to market exposure of the Borrower under the relevant Hedge Agreement as
calculated from time to time by such Secured Hedge Agreement Counterparty in
accordance with GAAP and notified to the Co-Collateral Agents (and acknowledged
by the Administrative Agent and Security Agent) (a) at the time such Hedge
Agreement is designated as an Approved Hedge Agreement Obligation and (b) from
time to time thereafter, in each case, in accordance with Section 11.19
(it being understood and agreed that a reserve with respect to any Hedge
Agreement designated as a Approved Hedge Agreement Obligation (i) once
established may only be decreased below the marked to market exposure of the
Borrower under the related Hedge Agreement with the consent of the Secured
Hedge Agreement Counterparty which is party to such Hedger Agreement and (ii)
may only be created or increased so long as the aggregate amount of all Hedging
Reserves does not exceed

 

31

 

(or
would not exceed following creation of, or increase in, such reserve)
$10,000,000 (or such greater amount with the consent of the Co-Collateral
Agents).

 

“Historical
Excess Availability” means for the purpose of the definition of “Payment
Conditions” with respect to any action or proposed action, an amount equal to
(i) the sum of Monthly Excess Availability for each month during the six (6)
month period immediately preceding such action or proposed action divided by
(ii) six (6).  Excess Availability shall
be determined on a Pro Forma Basis as if
such action or proposed action and any Advances incurred (or to be incurred),
Letters of Credit issued (or to be issued) or Debt repaid (or to be repaid) in
connection with such action or proposed action had occurred or been incurred,
issued or repaid, as the case may be, on the first day of the six (6) month
period immediately preceding such action or proposed action.

 

“Incremental
Commitment” means, for any Lender, any Commitment provided by such Lender
after the Closing Date in an Incremental Commitment Agreement delivered
pursuant to Section 2.16; it being understood, however, that on
each date upon which an Incremental Commitment of any Lender becomes effective,
such Incremental Commitment of such Lender shall be added to (and thereafter
become a part of) the Commitment of such Lender for all purposes of this
Agreement as contemplated by Section 2.16.

 

“Incremental
Commitment Agreement” means each Incremental Commitment Agreement in
substantially the form of Exhibit O (appropriately completed, and with
such modifications as may be reasonably satisfactory to the Administrative
Agent) executed and delivered in accordance with Section 2.16.

 

“Incremental
Commitment Date” means each date upon which an Incremental Commitment under
an Incremental Commitment Agreement becomes effective as provided in Section 2.16(b),
as applicable.

 

“Incremental
Commitment Requirements” means, with respect to any provision of an
Incremental Commitment on a given Incremental Commitment Date, the satisfaction
of each of the following conditions on the Incremental Commitment Date of the
respective Incremental Commitment Agreement: 
(i) no Default or Event of Default exists or would exist after giving
effect thereto; (ii) all of the representations and warranties contained in the
Loan Documents shall be true and correct in all material respects at such time
(unless stated to relate to a specific earlier date, in which case such
representations and warranties shall have been true and correct in all material
respects as of such earlier date); (iii) the delivery by the Funds
Administrator to the Administrative Agent of an acknowledgment, in form and
substance reasonably satisfactory to the Administrative Agent and executed by
each Co-Borrower and each Guarantor, acknowledging that such Commitment and all
Advances subsequently incurred, and Letters of Credit issued, as applicable,
pursuant to such Incremental Commitment shall constitute Obligations under the
Loan Documents and shall be (and are) secured on an equal and ratable basis
with the Obligations under the Collateral Documents; (iv) the delivery by the
Funds Administrator to the Administrative Agent of an opinion or opinions, in
form and substance reasonably satisfactory to the Administrative Agent, from
counsel to the Loan Parties reasonably satisfactory to the Administrative Agent
and dated such date, covering such matters incident to the transactions
contemplated thereby as the Administrative Agent may reasonably request; (v)

 

32

 

the
delivery by the Funds Administrator to the Administrative Agent of such other
officers’ certificates, board of director (or equivalent governing body)
resolutions and evidence of good standing (to the extent available under
applicable law) as the Administrative Agent shall reasonably request; (vi) the
incurrence of Advances in an aggregate principal amount equal to the aggregate
Incremental Commitments then being obtained shall be permitted at such time
under any indenture, loan agreement or other material agreement to which any
Loan Party is a party or by which it or any of its property or assets is bound
or to which it may be subject; (vii) the Funds Administrator shall have
delivered a certificate executed by a Responsible Officer of the Funds
Administrator, certifying to the best of such officer’s knowledge, compliance
with the requirements of preceding clauses (i), (ii) and (vi); and (viii) the
completion by each Loan Party of such other actions as the Administrative Agent
may reasonably request in connection with such Incremental Commitment in order
to create, continue or maintain the security interests of the Security Agent in
the Collateral and the perfection thereof (including, without limitation, any
amendments to Collateral Documents, additional Collateral Documents, any
mortgage amendments, title insurance policies and such other documents
(including legal opinions from the Loan Parties’ counsel) reasonably requested
by the Administrative Agent to be delivered in connection therewith).

 

“Incremental
Lender” has the meaning provided in Section 2.16(b).

 

“Indemnified
Party” has the meaning specified in Section 11.04(b).

 

“Individual
Exposure” of any Lender means, at any time, the sum of (a) the aggregate
principal amount of all Revolving Advances made by such Lender and then
outstanding, (b) such Lender’s Pro Rata Share in the aggregate amount of all
Swingline Advances outstanding at such time and (c) such Lender’s Pro Rata
Share in the aggregate amount of all Letter of Credit Outstandings at such
time.

 

“Initial
Borrowing Base Certificate” means a certificate showing the calculation of
the Borrowing Base as of the most recent month ended at least twenty (20) days
prior to the Closing Date together with all attachments and supporting
documentation in form and substance reasonably satisfactory to the
Co-Collateral Agents and certified as true, correct and complete in all
material respects by a Responsible Officer of the Funds Administrator.

 

“Initial
Issuing Bank” means DBTCA in its capacity as such.

 

“Initial
Lender” means each Lender identified as such on Schedule I hereto.

 

“Insolvency
Proceeding” means any proceeding in respect of bankruptcy, insolvency,
winding up, receivership, dissolution or assignment for the benefit of
creditors, in each of the foregoing events whether under the Bankruptcy Code or
any similar federal, state or foreign bankruptcy, insolvency, reorganization,
receivership or similar law.

 

“Intercreditor
Agreement” means the Intercreditor Agreement, dated as of the Closing Date,
substantially in the form of Exhibit K, as such agreement may be
amended, modified, restated and/or supplemented from time to time in accordance
with the terms hereof and thereof.

 

33

 

“Interest
Determination Date” means, with respect to any LIBOR Advance, the second
Business Day prior to the commencement of any Interest Period relating to such
LIBOR Advance.

 

“Interest
Period”  means, for each LIBOR
Advance comprising part of the same Borrowing to a Co-Borrower, the period
commencing on the date of such LIBOR Advance or the date of the Conversion of
any Base Rate Advance into such LIBOR Advance, and ending on the last day of
the period selected by the applicable Co-Borrower pursuant to the provisions
below and, thereafter, each subsequent period commencing on the last day of the
immediately preceding Interest Period and ending on the last day of the period
selected by the applicable Co-Borrower pursuant to the provisions below.  The duration of each such Interest Period
shall be one, two, three or six months, or, with the consent of all of the
Lenders, nine or twelve months, as the applicable Co-Borrower may, upon notice
received by the Administrative Agent not later than 11:00 A.M. (New York City
time) on the third (3rd) Business Day prior to the first day of such Interest
Period, select; provided, however, that:

 

(a)         Interest Periods commencing on the same
date for LIBOR Advances comprising part of the same Borrowing shall be of the
same duration;

 

(b)        whenever the last day of any Interest
Period would otherwise occur on a day other than a Business Day, the last day
of such Interest Period shall be extended to occur on the next succeeding
Business Day; provided, however, that, if such extension would
cause the last day of such Interest Period to occur in the next following
calendar month, the last day of such Interest Period shall occur on the next
preceding Business Day; and

 

(c)         whenever the first day of any Interest
Period occurs on a day of an initial calendar month for which there is no
numerically corresponding day in the calendar month that succeeds such initial
calendar month by the number of months equal to the number of months in such
Interest Period, such Interest Period shall end on the last Business Day of
such succeeding calendar month.

 

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

 

“Inventory”
means “inventory” as such term is defined in Article 9 of the UCC.

 

“Inventory
Formula Amount” means, on any date of determination for Eligible Inventory,
the lesser of (i) 65% of the Value of the Eligible Inventory; and (ii) 85% of
the sum of the Net Orderly Liquidation Values of the Eligible Inventory by
category.

 

“Inventory
Reserve” means reserves established by the Co-Collateral Agents in their
Permitted Discretion from time to time to reflect factors that may negatively
impact the Value of Inventory of the Co-Borrowers, including:

 

(a)                                  any book
reserves maintained by the Co-Borrowers in respect of Eligible Inventory
(excluding a LIFO reserve under GAAP);

 

34

 

(b)                                 any change in
salability, obsolescence, seasonality, theft, shrinkage, imbalance, change in
composition or mix, markdowns and vendor chargebacks;

 

(c)                                  discrepancies
that arise pertaining to inventory quantities on hand between a Co-Borrower’s
perpetual accounting system, and physical counts of the inventory which will be
equal to the greater of 2% or the results of the physical inventory counts
taken over the past 12 months with the variance expressed as a percentage of
Inventory;

 

(d)                                 discontinuance
or speed of turnover;

 

(e)                                  designation for
return to vendor

 

(f)                                    damage, quality
or failure to meet customer specifications;

 

(g)                                 revaluation for
deduction of capitalized favorable variances;

 

(h)                                 exclusion of
revaluation for addition of unfavorable variances;

 

(i)                                     to reflect
differences between a Co-Borrower’s actual cost to produce versus its selling
price to third parties, determined on a product line basis; and

 

(j)                                     any other
reserve established by the Co-Collateral Agents in their Permitted Discretion, from
time to time.

 

“Investment”
in any Person means any loan or advance to such Person, any purchase or other
acquisition of any capital stock or other ownership or profit interest,
warrants, rights, options, obligations or other securities of such Person, any
capital contribution to such Person or any other investment in such Person,
including, without limitation, any arrangement pursuant to which the investor
incurs Debt of the types referred to in clause (j) or (k) of the
definition of “Debt” in respect of such Person.

 

“Issuing
Bank” means the Initial Issuing Bank and any other Lender reasonably
acceptable to the Administrative Agent and the Borrower that agrees to issue
Letters of Credit hereunder.  Any Issuing
Bank may, in its discretion, arrange for one or more Letters of Credit to be
issued by one or more Affiliates of such Issuing Bank (and such Affiliate shall
be deemed to be an “Issuing Bank” for all purposes of the Loan Documents).

 

“L/C
Supportable Obligations” means (a) obligations of the Borrower or any
of its Subsidiaries with respect to workers compensation, surety bonds and
other similar statutory obligations and (b) such other obligations of the
Borrower or any of its Subsidiaries as are reasonably acceptable to the
respective Issuing Bank and otherwise permitted to exist pursuant to the terms
of this Agreement (other than obligations in respect of (i) the Senior
Secured Notes, (ii) the Existing Senior Convertible Notes, (iii) any
other Debt or other obligations that are subordinated in right of payment to
the Obligations and (iv) any Equity Interests).

 

35

 

“Lead
Arrangers” has the meaning specified in first paragraph of this Agreement.

 

“Leases”
has the meaning specified in Section 4.01(v).

 

“Lender
Party” means any Lender, the Swingline Bank and each Issuing Bank.

 

“Lenders”
means the Initial Lenders and each Person that shall become a Lender or a
successor Issuing Bank hereunder pursuant to Section 11.07.

 

“Lending
Office” means, with respect to any Lender Party, the office of such Lender
Party specified as its “Lending Office” opposite its name on Schedule I
hereto or in the Assignment and Acceptance pursuant to which it became a Lender
Party, as the case may be, or such other office of such Lender Party as such
Lender Party may from time to time specify to the Funds Administrator and the
Administrative Agent.

 

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

 

“Letter
of Credit Advance” means an advance made by an Issuing Bank pursuant to Section 2.03(e)(i).

 

“Letter
of Credit Back-Stop Arrangements” has the meaning specified in Section 2.15(d).

 

“Letter
of Credit Disbursement” has the meaning specified in Section 2.03(e)(v).

 

“Letter
of Credit Outstandings” means, at any time, the sum of (i) the
Available LC Amount of all outstanding Letters of Credit at such time and (ii) the
aggregate amount of all Letter of Credit Advances at such time.

 

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

 

“Letter
of Credit Sub-Limit” means $25,000,000.

 

“LIBOR”
means, for any Interest Period for all LIBOR Advances comprising part of the
same Borrowing, an interest rate per annum equal to the rate per annum
determined by the Administrative Agent at approximately 11:00 a.m. (London
time) on the date that is 2 Business Days prior to the commencement of such
Interest Period by reference to the Reuters Screen LIBOR01 for deposits in
Dollars (or such other comparable page as may, in the opinion of the
Administrative Agent, replace such page for the purpose of displaying such
rates) for a period equal to such Interest Period; provided that to the
extent that an interest rate is not ascertainable pursuant to the foregoing
provisions of this definition, the “LIBOR” shall be the interest rate per annum
determined by the Administrative Agent to be the average of the rates per annum
at which deposits in Dollars are offered for such relevant Interest Period to
major banks in the London interbank market in London, England by the
Administrative Agent at approximately 11:00 a.m. (London time) on the date
that is 2 Business Days prior to the beginning of such Interest Period,  divided by a percentage equal to 100% minus
the LIBOR Reserve Percentage for such period. 
The LIBOR for any Interest Period for each LIBOR Advance comprising part

 

36

 

of
the same Borrowing shall be determined by the Administrative Agent, subject,
however, to the provisions of Section 2.07.

 

“LIBOR
Advance” means an Advance (other than a Swingline Advance) that bears
interest as provided in Section 2.07(a)(ii).

 

“LIBOR
Reserve Percentage” for any Interest Period for all LIBOR Advances
comprising part of the same Borrowing means the reserve percentage applicable
two Business Days before the first day of such Interest Period under
regulations issued from time to time by the Board of Governors of the Federal
Reserve System (or any successor) for determining the maximum reserve
requirement (including, without limitation, any emergency, supplemental or
other marginal reserve requirement) for a member bank of the Federal Reserve
System in New York City with respect to liabilities or assets consisting of or
including Eurocurrency Liabilities (or with respect to any other category of
liabilities that includes deposits by reference to which the interest rate on
LIBOR Advances is determined) having a term equal to such Interest Period.

 

“Lien”
means any lien, security interest or other charge or encumbrance of any kind,
or any other type of preferential arrangement, including, without limitation,
any agreement to give any of the foregoing, any lien or retained security title
of a conditional vendor and any easement, right of way or other encumbrance on
title to real property.

 

“Loan
Documents” means (i) this Agreement, (ii) the Notes, (iii) the
Collateral Documents, (iv) after the execution and delivery thereof
pursuant to the terms of this Agreement, each additional Note, each additional
Collateral Document and each Incremental Commitment Agreement and (v) each
other document, instrument or agreement designated as a “Loan Document” by the
Administrative Agent and the Funds Administrator, in each case as amended,
supplemented or otherwise modified from time to time.

 

“Loan
Parties” means each Co-Borrower and each Subsidiary Guarantor and “Loan
Party” means any one of the Co-Borrowers or Subsidiary Guarantors.

 

“Lockbox
Account” means each Deposit Account established at a Collection Bank
subject to a Cash Management Control Agreement into which funds shall be
transferred as provided in Section 5.15(b).

 

“Majority
Lenders” means, at any time, Lenders owed or holding at least a majority in
interest of the sum of (a) the aggregate principal amount of the Revolving
Advances (other than Swingline Advances) outstanding at such time, (b) the
aggregate principal amount of the Swingline Advances outstanding at such time, (c) the
aggregate Available LC Amount of all Letters of Credit outstanding at such time
and (d) the aggregate Unused Commitments at such time; provided, however,
that if any Lender shall be a Defaulting Lender at such time, there shall be
excluded from the determination of Majority Lenders at such time (i) the
aggregate principal amount of the Revolving Advances (other than Swingline
Advances) owing to such Lender (in its capacity as Lender) and outstanding at
such time, (ii) such Lender’s Pro Rata Share of the aggregate principal
amount of the Swingline Advances outstanding at such time, (iii) such
Lender’s Pro Rata Share of the aggregate Available LC Amount of all Letters of
Credit issued and outstanding at such time, and (iv) the Unused Commitment
of such Lender at such time.  For

 

37

 

purposes
of this definition, the aggregate principal amount of Swingline Advances owing
to the Swingline Bank and the aggregate principal amount of Letter of Credit
Advances owing to the Issuing Bank and the Available LC Amount of each Letter
of Credit shall, in each case, be considered to be owed to the Lenders ratably
in accordance with their respective Commitments.

 

“Mandatory Borrowing” has the meaning
provided in Section 2.02(b).

 

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

 

“Material
Adverse Effect” means a material adverse effect on (a) the business,
financial condition, operations, assets or liabilities of the Borrower and its
Subsidiaries taken as a whole (b) the rights and remedies of the
Administrative Agent or any Lender Party under any Loan Document or (c) the
ability of any Loan Party to perform its Obligations under any Loan Document to
which it is or is to be a party.

 

“Maximum
Incremental Amount” means $25,000,000.

 

“Measurement
Period” means, as of any date of determination, the most recently completed
four consecutive Fiscal Quarters ending on or immediately prior to such date,
in each case taken as one accounting period.

 

“Mexican
Collateral Documents” means the Accuride Mexican Pledge Agreement, the
Bostrom Mexican Pledge Agreement and any other similar security agreements,
instruments and documents executed and delivered pursuant to Section 5.11
governed by Mexican law (or the laws of any state of Mexico).

 

“Minimum
Excess Availability Condition” means the first date following the Closing
Date that the Funds Administrator delivers a certificate in form and substance
reasonably satisfactory to the Administrative Agent and the Co-Collateral
Agents that the Borrower is in compliance with the financial covenant set forth
in Section 8 (determined for purposes of this definition only, as
if a Compliance Period is then in existence).

 

“Moody’s”
means Moody’s Investors Service, Inc. and any successor thereto.

 

“Monthly
Excess Availability” means for any month, the average Excess Availability
during such month based on utilization and on Borrowing Base Certificates
supplied by the Borrower from time to time.

 

“Mortgage”
means each of the mortgages and deeds of trust made by any Loan Party in favor
of, or for the benefit of, the Security Agent for the benefit of the Secured
Parties, substantially in the form of Exhibit F (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).

 

“Mortgage
Policy” means the fully paid title insurance policies, from a title
insurance company or companies reasonably acceptable to the Security Agent, in
form and substance, with endorsements and in amounts reasonably acceptable to
the Security Agent, issued, coinsured and reinsured by such title insurance
company or companies.

 

38

 

“Multiemployer
Plan” means a multiemployer plan within the meaning of Section 4001(a)(3) of
ERISA to which a Loan Party or an ERISA Affiliate has any obligation to
contribute or within the past five years has had an obligation to contribute.

 

“NAIC”
means the National Association of Insurance Commissioners.

 

“Net
Cash Proceeds” means, with respect to any sale, lease, transfer or other
disposition of any asset, the sale or issuance of any Equity Interests, or the
incurrence or issuance of any Debt by any Person, or any Recovery Event, the
aggregate amount of cash received from time to time (whether as initial
consideration or through payment or disposition of deferred consideration, but
only as and when received) by or on behalf of such Person in connection with
such transaction or event after deducting therefrom (without duplication):

 

(a)           reasonable and customary fees,
commissions, expenses, issuance costs, discounts and other costs paid by the
Borrower or any of its Subsidiaries in connection with such transaction or
event;

 

(b)           the amount of taxes paid or estimated to be payable in
connection with or as a result of such transaction or event;

 

(c)           the amount of the outstanding principal amount of, premium
or penalty, if any, and interest on any Debt (other than Debt pursuant to this
Agreement) that is secured by a Lien on the stock or assets in question and
that is required to be repaid under the terms thereof as a result of any such
transaction or event;

 

(d)           the amount of any reasonable reserves established in
accordance with GAAP against any liabilities (other than taxes described in
clause (b) above) that are (i) associated with the assets that are
the subject of such transaction or event and (ii) retained by the Borrower
or any of its Subsidiaries;

 

(e)           in the case of any sale, lease, transfer or other
disposition of any assets (including any Asset Sale), if any part of the assets
sold, leased, transferred or otherwise disposed of form part of the ABL
Priority Collateral and such assets are pledged to secure the Obligations, a
portion of any cash, Cash Equivalents or marketable securities received in
payment for such assets in an amount equal to the book value of any such
assets; and

 

(f)            the amount of any proceeds received from the sale, lease,
transfer or other disposition of any asset pursuant to Section 6.04
or any Recovery Event to the extent that such proceeds are invested in the
business within one (1) year following such sale or Recovery Event, provided
that, from and after the Closing Date, the aggregate amount of proceeds (other
than proceeds of asset dispositions permitted pursuant to Sections 6.04(a) or
(d) and proceeds from Recovery Events) that may be so reinvested in
the business shall not exceed $10,000,000 in any Fiscal Year;

 

provided, however,
that in the event the amount of any estimated tax payable described in clause (b) above
exceeds the amount actually paid, or upon any subsequent reduction in the
amount of any reserve described in clause (d) above, the Borrower or its
applicable Subsidiary shall be deemed to have received Net Cash Proceeds in an
amount equal to such excess or reduction, at

 

39

 

the
time of payment of such taxes or on the date of such reduction, as the case may
be; provided  further that any portion of any proceeds received
from the sale, lease, transfer or other disposition of any asset pursuant to Section 6.04
or any Recovery Event that has not been invested in the business as permitted
under this Agreement within such one (1) year period shall (i) be
deemed to be Net Cash Proceeds of such a sale or Recovery Event occurring on
the last day of such one (1) year period and (ii) be applied to the
prepayment of Advances in accordance with Section 2.06(b); provided
further that, for purposes of the preceding proviso, such one (1) year
period shall be extended by up to six (6) additional months from the last
day of such initial one (1) year period so long as (A) such proceeds
are to be invested in the business as permitted under this Agreement within
such additional six (6) month period under the Borrower’s or any of its
Subsidiaries’ business plan as most recently adopted in good faith by its board
of directors and (B) such Person believes in good faith that such proceeds
will be so reinvested within such additional six (6) month period.

 

“Net
Orderly Liquidation Value” means the “net orderly liquidation value”
determined separately for raw materials, work-in-process and finished goods
Inventory by an unaffiliated valuation company reasonably acceptable to the
Co-Collateral Agents after performance of an inventory valuation to be done at
the Co-Collateral Agents’ request and the Co-Borrowers’ expense, less the
amount estimated by such valuation company for marshalling, reconditioning,
carrying, and sales expenses designated to maximize the resale value of such
Inventory on an “as is” basis and assuming that the time required to dispose of
such Inventory is customary with respect to such Inventory and expressed as a
percentage of the net book value of such raw materials, work-in-process and
finished goods Inventory.

 

“Note”
means a Revolving Note or a Swingline Note.

 

“Notice
of Revolving Borrowing” has the meaning specified in Section 2.02(a).

 

“Notice
of Swingline Borrowing” has the meaning specified in Section 2.02(b).

 

“Notice
of Swingline Redemption” has the meaning specified in Section 2.02(b).

 

“NPL”
means the National Priorities List under CERCLA.

 

“Obligation”
means, with respect to any Person, any payment, performance or other obligation
of such Person of any kind, including, without limitation, any liability of
such Person on any claim, whether or not the right of any creditor to payment
in respect of such claim is reduced to judgment, liquidated, unliquidated,
fixed, contingent, matured, disputed, undisputed, legal, equitable, secured or
unsecured, and whether or not such claim is discharged, stayed or otherwise
affected by any Insolvency Proceeding referred to in Section 9.06.
Without limiting the generality of the foregoing, the Obligations of the Loan
Parties under the Loan Documents include (a) the unpaid principal of and
interest on the Advances, reimbursement obligations in respect of Swingline
Advances, Letters of Credit, Letter of Credit Advances and other Letter of
Credit commissions, charges, expenses, fees, attorneys’ fees and disbursements,
indemnities and other amounts payable by any Loan Party under any Loan Document
(including, without limitation, interest accruing at the then applicable rate
provided herein after the maturity of the Advances and reimbursement
obligations in respect of Swingline Advances, Letter of

 

40

 

Credit
Advances and Letters of Credit and Post-Petition Interest and Expenses) to the
Administrative Agent, the Co-Collateral Agents, the Security Agent or any
Lender Party, 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, the other Loan Documents, any Letter
of Credit or any other document made, delivered or given in connection with any
of the foregoing, 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 Administrative
Agent, the Co-Collateral Agents, the Security Agent or to the Lender Parties
that are required to be paid by the Borrower pursuant to the terms of any of
the foregoing agreements) and (b) the obligation of any Loan Party to
reimburse any amount in respect of any of the foregoing that any Lender Party,
in its sole discretion, may elect to pay or advance on behalf of such Loan
Party.

 

“OECD”
means the Organization for Economic Cooperation and Development.

 

“OFAC” has the meaning set forth in the
definition of “Anti-Terrorism Laws.”

 

“Off-Balance
Sheet Liabilities” of any Person means (a) any repurchase obligation
or liability of such Person with respect to accounts or notes receivable sold
by such Person, (b) any liability of such Person under any sale and
leaseback transactions that does not create a liability on the balance sheet of
such Person (other than an operating lease), (c) any obligation under a
Synthetic Lease or (d) any obligation arising with respect to any other
transaction which is the functional equivalent of or takes the place of
borrowing but which does not constitute a liability on the balance sheet of
such Person.

 

“Other
Permitted Debt” has the meaning specified in Section 6.02(s).

 

“Other
Permitted Debt Documents” means all agreements, indentures and instruments
pursuant to which Other Permitted Debt is issued.

 

“Other
Taxes” has the meaning specified in Section 2.12(b).

 

“Participant”
has the meaning specified in Section 2.03(d)(i).

 

“Payment
Conditions” means that at the time of each action or proposed action and
after giving effect thereto each of the following conditions are satisfied:  (a) no Default or an Event of Default
shall have occurred and be continuing, (b) Excess Availability (on the
date of such action or proposed action after giving effect to any Advances
incurred (or to be incurred) or Letters of Credit issued (or to be issued) on
such date in connection with such action or proposed action) and Historical
Excess Availability, calculated on a pro forma basis in accordance with the
definition thereof, shall exceed the greater of (A) $15,000,000 and (B) 25%
of the Total Commitment as then in effect, (c) the Consolidated Fixed
Charge Coverage Ratio shall be not less than 1.25:1.00 for the Measurement
Period then most recently ended for which financial statements are available
calculated on a Pro Forma Basis as if such
action or proposed action had occurred on the first day of such Measurement
Period, and (d) the Funds Administrator shall have delivered to the
Administrative Agent, the Co-Collateral Agents and the Security Agent a
certificate of a Responsible Officer of the Funds Administrator certifying as
to compliance with

 

41

 

preceding
clauses (a) through (c) and demonstrating (in reasonable detail) the
calculations required by preceding clauses (b) and (c).

 

“PBGC”
means the Pension Benefit Guaranty Corporation (or any successor).

 

“Permitted
Acquired Debt” has the meaning given to it in Section 6.02(r).

 

“Permitted
Acquisition” means the acquisition by the Borrower or a Wholly-Owned
Subsidiary of the Borrower which is a Subsidiary Guarantor of an Acquired
Entity or Business (including by way of merger of such Acquired Entity or
Business with and into the Borrower (so long as the Borrower is the surviving
corporation) or a Wholly-Owned Subsidiary of the Borrower which is a Subsidiary
Guarantor (so long as the surviving Person is or becomes a Subsidiary
Guarantor)), provided that (in each case):

 

(a)         the consideration paid or to be paid by
the Borrower or such Wholly-Owned Subsidiary consists solely of cash (including
proceeds of Revolving Advances or Swingline Advances), the issuance or
incurrence of Debt otherwise permitted by Section 6.02 and the
assumption/acquisition of any Permitted Acquired Debt (calculated at face
value) which is permitted to remain outstanding in accordance with the
requirements of Section 6.02;

 

(b)        the Acquired Entity or Business acquired
pursuant to the respective Permitted Acquisition would not cause the Borrower
to be in breach of the covenant set forth in Section 5.05 (Conduct
of Business); and

 

(c)         all requirements of Sections 5.11
and 5.19 applicable to Permitted Acquisitions are satisfied.

 

Notwithstanding
anything to the contrary contained in this definition, an acquisition which
does not otherwise meet the requirements set forth above shall constitute a
Permitted Acquisition if, and to the extent, the Majority Lenders agree in
writing, prior to the consummation thereof, that such acquisition shall
constitute a Permitted Acquisition for purposes of this Agreement.

 

“Permitted
Discretion” means the exercise of the Administrative Agent’s, the
Co-Collateral Agents’ or the Security Agent’s good faith judgment, as the case
may be, (from the perspective of a secured asset-based lender) in consideration
of any factor which will or is reasonably likely to (a) adversely affect
the value of any ABL Priority Collateral, the enforceability or priority of the
Liens thereon or the amount that the Secured Parties would be likely to receive
(after giving consideration to delays in payment and costs of enforcement) in
the liquidation thereof, (b) suggest that any collateral report or
financial information delivered to the Administrative Agent, the Co-Collateral
Agents, the Security Agent or the Lenders by any Person on behalf of the
Borrower or any other Loan Party is incomplete, inaccurate or misleading in any
material respect, (c) materially increase the likelihood that the Lenders
would not receive payment in full in cash for all of the Obligations or (d) otherwise
materially adversely affect the interests of the Secured Parties.  In exercising such judgment, the
Administrative Agent, the Co-Collateral Agents or the Security Agent may
consider such factors already included in or tested by the definition of
Eligible Accounts or Eligible Inventory, as well as any of the following:  (a) the changes in collection history
and Dilution or collectability with respect 

 

42

 

to
the Accounts; (b) changes in demand for, pricing of, or product mix of
Inventory; (c) changes in any concentration of risk with respect to the
Borrower’s or any other Co-Borrower’s Accounts or Inventory; and (d) any
other factors that change the credit risk of lending to the Borrower or any
other Co-Borrower on the security of the Borrower’s or any other Co-Borrower’s
Accounts Accounts or Inventory.

 

“Permitted
Equity Documents” means all agreements, indentures and instruments pursuant
to which Equity Interests other than Disqualified Equity Interests are issued.

 

“Permitted
Liens” means such of the following as to which no enforcement, collection,
execution, levy or foreclosure proceeding shall have been commenced:  (a) Liens for taxes, assessments and
governmental charges or levies to the extent not required to be paid under Section 5.02
hereof; (b) Liens imposed by law, such as materialmen’s, mechanics’,
carriers’, workmen’s and repairmen’s Liens and other similar Liens arising in
the ordinary course of business outstanding at any time (i) that secure
indebtedness that is not overdue for a period of more than 45 days or (ii) which
are being contested in good faith by appropriate proceedings, provided
that (x) such proceedings have the effect of preventing or suspending any
proceedings for the forfeiture or sale of, or exercise of other enforcement
remedies with respect to, the property or assets subject to any such Lien and (y) full
provision for the payment of such Liens has been made on the books of such
Person if and to the extent required by GAAP; (c) Liens arising from
judgments or decrees in circumstances not constituting an Event of Default
under Section 9.07); (d) Liens incurred or deposits made in
connection with workers’ compensation, unemployment insurance and other types
of social security, or to secure the performance of tenders, statutory obligations,
surety and appeal bonds, bids, leases, government contracts, performance and
return-of-money bonds and other similar obligations incurred in the ordinary
course of business; (e) ground leases in respect of real property on which
facilities owned or leased by the Borrower or any of its Subsidiaries are
located; (f) easements, rights-of-way, restrictions, minor defects or
irregularities in title and other similar charges or encumbrances not
interfering in any material respect with the business of the Borrower and its
Subsidiaries taken as a whole; (g) any interest or title of a lessor or
secured by a lessor’s interest under any lease permitted by this Agreement and
any Liens arising from any financing statement filed in connection with such
lease; (h) 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; (i) Liens on goods the purchase price of which is
financed by a documentary letter of credit issued for the account of the
Borrower or any of its Subsidiaries; provided that such Lien secures
only the obligations of the Borrower or such Subsidiaries in respect of such
letter of credit to the extent permitted under Section 6.02(o); and
(j) leases or subleases granted to others not interfering in any material
respect with the business of the Borrower and its Subsidiaries, taken as a
whole.

 

“Permitted
Refinancing Debt” means any Debt of the Borrower and its Subsidiaries
issued or given in exchange for, or the proceeds of which are used to, extend,
refinance, renew, replace, substitute or refund Debt permitted under clause (ii) of
Section 6.02, or any Debt issued to so extend, renew, refinance,
replace, substitute or refund any such Debt, so long as (a) such Debt
matures no earlier than six months after the Termination Date and does not have
any mandatory prepayment obligations prior to such maturity date (other than
pursuant to customary asset sale and change of control provisions) and
otherwise contains terms and

 

43

 

conditions
which are similar to the Senior Secured Notes, (b) such Debt has a
weighted average life to maturity greater than or equal to the weighted average
life to maturity of the Debt being refinance, and (c) such refinancing or
renewal does not (i) increase the principal amount of such Debt
outstanding immediately prior to such refinancing or renewal other than as a
result of the refinancing of accrued unpaid interest, premiums (including applicable
prepayment premiums) or fees and the costs of issuing such refinancing Debt or (ii) add
guarantors, obligors or security from that which applied to such Debt being
refinance or renewed.

 

“Permitted
Subordinated Debt” has the meaning specified in Section 6.02(d).

 

“Person”
means an individual, partnership, corporation (including a business trust),
limited liability company, joint stock company, trust, unincorporated
association, joint venture or other entity, or a government or any political
subdivision or agency thereof.

 

“Plan”
means any multiemployer or single-employer plan, as defined in
Section 4001 of ERISA and subject to Title IV of ERISA, that is or was
within any of the preceding five plan years maintained or contributed to by (or
to which there is or was an obligation to contribute or to make payments of)
any Loan Party or an ERISA Affiliate.

 

“Post-Petition
Interest and Expenses” means interest accruing at the then applicable rate
provided herein after the filing of any petition in bankruptcy, or the
commencement of any Insolvency Proceeding, relating to any Co-Borrower, and
expenses reimbursable hereunder which are incurred after the filing of any
petition in bankruptcy or the commencement of any such Insolvency Proceeding,
whether or not a claim for such post-filing or post-petition interest or
expenses is allowed in such proceeding.

 

“Primary
Obligations” means (i) all Obligations under the Loan Documents other
than Secondary Obligations, including all other premiums, fees and interest on,
all Advances and all Letter of Credit Outstandings and (ii) Approved Hedge
Agreement Obligations (other than, indemnities, fees (including, without
limitation, attorneys’ fees) and similar obligations and liabilities) for which
a Hedging Reserve has been established in an aggregate amount not to exceed the
lesser of (a) the then current amount of all Hedging Reserves so
established and (b) $10,000,000.

 

“Prime
Rate” means the rate which the Administrative Agent announces from time to
time as its prime lending rate, the Prime Rate to change when and as such prime
lending rate changes.  The Prime Rate is
a reference rate and does not necessarily represent the lowest or best rate
actually charged to any customer by the Administrative Agent, which may make
commercial loans or other loans at rates of interest at, above or below the
Prime Rate.

 

“Pro
Forma Basis” means, in connection with any calculation of compliance with
any financial covenant or financial term, the calculation thereof after giving
effect on a pro  forma basis to (a) the incurrence of any
Debt (other than revolving Debt, except to the extent the same is incurred to
refinance other outstanding Debt or to finance a Permitted Acquisition) after
the first day of the relevant Measurement Period, as if such Debt had been
incurred (and the proceeds thereof applied) on the first day of such
Measurement Period, (b) the permanent repayment of any Debt (other than
revolving Debt, except to the extent accompanied by a

 

44

 

corresponding
permanent commitment reduction) after the first day of the relevant Measurement
Period, as if such Debt had been retired or repaid on the first day of such
Measurement Period, and (c) any Permitted Acquisition or any Significant
Asset Sale then being consummated as well as any other Permitted Acquisition or
any other Significant Asset Sale if consummated after the first day of the
relevant Measurement Period and on or prior to the date of the respective
Permitted Acquisition or Significant Asset Sale, as the case may be, then being
effected, with the following rules to apply in connection therewith:

 

(i)            all Debt (x) (other
than revolving Debt, except to the extent the same is incurred to refinance
other outstanding Debt or to finance Permitted Acquisitions) incurred or issued
after the first day of the relevant Measurement Period (whether incurred to
finance a Permitted Acquisition, to refinance Debt or otherwise) shall be
deemed to have been incurred or issued (and the proceeds thereof applied) on
the first day of such Measurement Period and remain outstanding through the
date of determination (and thereafter, in the case of projections pursuant to Section 5.19(a))
and (y) (other than revolving Debt, except to the extent accompanied by a
corresponding permanent commitment reduction) permanently retired or redeemed
after the first day of the relevant Measurement Period shall be deemed to have
been retired or redeemed on the first day of such Measurement Period and remain
retired through the date of determination (and thereafter, in the case of
projections pursuant to Section 5.19(a));

 

(ii)           all Debt assumed to
be outstanding pursuant to the preceding clause (i) shall be deemed to
have borne interest at (x) the rate applicable thereto, in the case of
fixed rate indebtedness, or (y) the rates which would have been applicable
thereto during the respective period when the same was deemed outstanding, in
the case of floating rate Debt (although interest expense with respect to any
Debt for periods while the same was actually outstanding during the respective
period shall be calculated using the actual rates applicable thereto while the
same was actually outstanding); provided that all Debt (whether actually
outstanding or deemed outstanding) bearing interest at a floating rate of
interest shall be tested on the basis of the rates applicable at the time the
determination is made pursuant to said provisions; and

 

(iii)          in making any
determination of Consolidated EBITDA on a Pro  Forma Basis, pro
forma effect shall be given to any Permitted Acquisition or any
Significant Asset Sale if effected during the relevant Measurement Period, as
applicable, (or thereafter, for purposes of determinations pursuant to Section 5.19
and the definition of “Applicable Margin” only) as if the same had occurred on
the first day of the relevant Measurement Period.

 

For
purposes of this definition, “relevant Measurement Period” means the
Measurement Period most recently ended prior to the date of such calculation,
or, as applicable, the Permitted Acquisition, Significant Asset Sale or other
event requiring such Pro Forma Basis calculation, for which financial
statements have been delivered to the Lenders pursuant to Section 7.01
or 7.02, as applicable.

 

“Pro
Rata Share” of any amount means the product of such amount times a
fraction the numerator of which is the amount of such Lender’s Commitment, at
such time and 

 

45

 

the
denominator of which is the Total Commitment; provided that if the Pro
Rata Share of any Lender is to be determined after the Total Commitment has
been terminated, then the Pro Rata Share of such Lender shall be determined
immediately prior (and without giving effect) to such termination but after
giving effect to any assignments and/or assumptions after such termination.

 

“Raw
Materials” means any items or materials used or consumed in the manufacture
of goods to be sold by the Loan Parties in the ordinary course of business.

 

“Recovery
Event” means any settlement of or payment in respect of any property or
casualty insurance claim or any condemnation proceeding relating to any asset
of the Borrower or any of its Subsidiaries.

 

“Refinancing”
means the refinancing transactions described in Section 3.01(c)(i) and
(ii).

 

“Register”
has the meaning specified in Section 11.07(d).

 

“Regulation
U” means Regulation U of the Board of Governors of the Federal Reserve
System, as in effect from time to time.

 

“Related
Documents” means the Existing Senior Convertible Notes Documents, the
Senior Secured Notes Documents and any Subordinated Debt Documents.

 

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

 

“Rent
Reserve” means a reserve established by the Co-Collateral Agents in respect
of rent payments made by the Borrower or a Co-Borrower for each location at
which Inventory of the Borrower or a Co-Borrower is located that is not subject
to a Third Party Agreement equal to three times the monthly gross rent or
warehouse payments for each such location, as adjusted from time to time by the
Co-Collateral Agents in their Permitted Discretion; provided that in lieu of
providing a Rent Reserve for any location, the Borrower or such other
Co-Borrower, as applicable, may elect to exclude all Inventory at that
location.

 

“Reportable
Event” means an event described in Section 4043 of ERISA and the
regulations thereunder.

 

“Requirements
of Law” means, with respect to any Person, all laws, constitutions,
statutes, treaties, ordinances, rules and regulations, all orders, writs,
decrees, injunctions, judgments, determinations or awards of an arbitrator, a
court or any other governmental authority, and all governmental authorizations,
binding upon or applicable to such Person or to any of its properties, assets
or businesses.

 

“Responsible
Officer” means any officer of any Loan Party or any of its Subsidiaries.

 

46

 

“Restricted”
means, when referring to cash or Cash Equivalents of the Borrower or any of its
Subsidiaries, that such cash or Cash Equivalents (a) appears (or would be
required to appear) as “restricted” on a Consolidated balance sheet of the
Borrower or of any such Subsidiary (unless such appearance is related to the
Loan Documents or Liens created thereunder), (b) are subject to any Lien
in favor of any Person other than the Administrative Agent for the benefit of
the Secured Parties or the Senior Secured Noteholder Collateral Agent for the
benefit of the Senior Secured Noteholder Secured Parties or (c) are not
otherwise generally available for use by the Borrower or such Subsidiary.

 

“Restricted Party” means any person listed:

 

(a)           in the Annex to the
Executive Order;

 

(b)           on the “Specially
Designated Nationals and Blocked Persons” list maintained by the OFAC;

 

(c)           in any successor
list to either of the foregoing; or

 

(d)           any person or entity
that commits, threatens or conspires to commit or supports “terrorism” as
defined in the Executive Order.

 

“Restructuring
Charges” has the meaning set forth in the definition of “Consolidated
EBITDA.”

 

“Revolving
Advance” has the meaning specified in Section 2.01(a).

 

“Revolving
Borrowing” means a borrowing consisting of simultaneous Revolving Advances
of the same Type made by the Lenders.

 

“Revolving
Note” means a promissory note of the applicable Co-Borrower payable to the
order of any Lender, in substantially the form of Exhibit A-1 hereto,
evidencing the aggregate indebtedness of the applicable Co-Borrower to such
Lender resulting from the Revolving Advance made by such Lender.

 

“S&P”
means Standard & Poor’s Ratings Services and any successor thereto.

 

“Secondary
Obligations” means all Cash Management Obligations under Secured Cash
Management Agreements and all Secured Hedging Obligations (other than Approved
Hedge Agreement Obligations not exceeding the limit set forth in clause (ii) of
the definition of “Primary Obligations”).

 

“Secured
Cash Management Agreement” means each Cash Management Agreement entered
into by a Loan Party with any Cash Management Creditor.

 

“Secured
Hedge Agreement Counterparty” means, collectively, each Lender and/or any
Affiliate thereof that has entered into one or more Hedge Agreements, even if
such Person is not or subsequently ceases to be a Lender and/or any Affiliate
thereof under this Agreement for any reason, together with such Person’s or
their Affiliate’s successors, if any, for 

 

47

 

so
long as such Person or their Affiliate (or successor thereof) participates in
such Hedge Agreement.

 

“Secured
Hedging Obligations” means all obligations and liabilities of the
Co-Borrowers to any Secured Hedge Agreement Counterparty, whether now existing
or hereafter incurred under, arising out of or in connection with such Hedge
Agreement, that are secured by the Collateral.

 

“Secured
Parties” means the Administrative Agent, the Co-Collateral Agents, the
Security Agent, the Lead Arrangers, the Lender Parties, the Secured Hedge
Agreement Counterparties and the Cash Management Creditors.

 

“Security
Agent” means the Administrative Agent acting as security agent for the
Secured Parties pursuant to the Collateral Documents.

 

“Senior
Secured Noteholder Collateral Agent” means Deutsche Bank Trust Company
Americas in its capacity as noteholder collateral agent under the Senior
Secured Notes Documents, and its successors and assigns in such capacity.

 

“Senior
Secured Noteholder Obligations” has the meaning specified in the
Intercreditor Agreement.

 

“Senior
Secured Noteholder Secured Parties” has the meaning specified in the
Intercreditor Agreement.

 

“Senior
Secured Noteholders” means the holders of the Senior Secured Notes.

 

“Senior
Secured Notes” means the Borrower’s 9.5% Senior Secured Notes due August 1,
2018, issued pursuant to the Senior Secured Note Indenture, as in effect on the
Closing Date and as the same may be amended, modified and/or supplemented from
time to time in accordance with the terms hereof and thereof.

 

“Senior
Secured Notes Documents” means the Senior Secured Notes, the Senior Secured
Notes Indenture, the Senior Secured Notes Security Documents and all other
documents executed and delivered with respect to the Senior Secured Notes or
Senior Secured Notes Indenture, as in effect on the Closing Date and as the
same may be amended, modified and/or supplemented from time to time in
accordance with the terms hereof and thereof.

 

“Senior
Secured Notes Indenture” means the Indenture, dated as of the date hereof,
among the Borrower as issuer, the Subsidiary Guarantors as guarantors and
Wilmington Trust FSB, as trustee, as in effect on the Closing Date and as
thereafter amended, modified and/or supplemented from time to time in
accordance with the terms hereof and thereof.

 

“Senior
Secured Notes Obligations Termination Date” means the date upon which the
Discharge of Senior Secured Notes Obligations shall have occurred with respect
to the Senior Secured Noteholder Obligations.

 

48

 

“Senior
Secured Notes Priority Collateral” means any and all Collateral other than
the ABL Priority Collateral.

 

“Senior
Secured Notes Security Documents” means the “Security Documents” as defined
in the Senior Secured Notes Indenture.

 

“Settlement
Date” has the meaning provided in Section 2.02(g)(i).

 

“Significant
Asset Sale” means each Asset Sale which generates Net Cash Proceeds of at
least $40,000,000.

 

“Solvent”
and “Solvency” mean, with respect to any Person on a particular date,
that on such date (a) the fair value of the property of such Person is
greater than the total amount of liabilities, including, without limitation,
contingent liabilities, of such Person, (b) the present fair salable value
of the assets of such Person is not less than the amount that will be required
to pay the probable liability of such Person on its debts as they become
absolute and matured, (c) such Person does not intend to, and does not
believe that it will, incur debts or liabilities beyond such Person’s ability
to pay such debts and liabilities as they mature and (d) such Person is
not engaged in business or a transaction, and is not about to engage in
business or a transaction, for which such Person’s property would constitute an
unreasonably small capital.  The amount
of contingent liabilities at any time shall be computed as the amount that, in
the light of all the facts and circumstances existing at such time, represents
the amount that can reasonably be expected to become an actual or matured
liability.

 

“Specified
Change of Control” means a “Change of Control” (or any other defined term
having a similar purpose), as defined in any Senior Secured Notes Document, any
Subordinated Debt Document or any Permitted Equity Document.

 

“Subordination
Agreement” has the meaning provided in Section 6.02(p).

 

“Subordinated
Debt” means (a) the Debt evidenced by the Existing Senior Convertible
Notes, (b) any other Debt of the Borrower containing terms substantially
similar to the Existing Senior Convertible Notes or containing covenants,
events of default and credit support that is reasonably customary for market
offerings of subordinated debt by issuers with a credit rating comparable to
the Borrower, that in each case is effectively subordinated to the Obligations
of the Borrower under the Loan Documents either (i) in a manner no less
favorable to the Lender Parties than the subordination applicable to the
Existing Senior Convertible Notes, or (ii) on customary terms for market
offerings of non-convertible subordinated debt by issuers with a credit rating
comparable to the Borrower, such terms to be reasonably acceptable to the
Administrative Agent (whose approval shall not be unreasonably withheld or
delayed) or (iii) otherwise on terms satisfactory to the Majority Lenders;
provided that any subordination terms previously agreed to or found
acceptable shall be deemed acceptable for future issuances of Subordinated Debt
and (c) guaranty Obligations of any Loan Party in respect of any such Debt
referred to in the foregoing clauses (a) and (b), so long as such guaranty
Obligations are effectively subordinated to the Obligations of such Loan Party
under the Loan Documents either in a manner no less favorable to the Lender
Parties than those applicable to the guaranty 

 

49

 

Obligations
of such Loan Party in respect of the Existing Senior Convertible Notes or
otherwise on terms satisfactory to the Majority Lenders.

 

“Subordinated
Debt Documents” means the Existing Senior Convertible Notes Indenture and
all other agreements, indentures and instruments pursuant to which Permitted
Subordinated Debt is issued.

 

“Subsidiary”
of any Person means any corporation, partnership, joint venture, limited
liability company, trust or estate of which (or in which) more than 50% of (a) the
issued and outstanding capital stock having ordinary voting power to elect a
majority of the Board of Directors of such corporation (irrespective of whether
at the time capital stock of any other class or classes of such corporation
shall or might have voting power upon the occurrence of any contingency), (b) the
interest in the capital or profits of such partnership, joint venture or
limited liability company or (c) the beneficial interest in such trust or
estate is at the time directly or indirectly owned or controlled by such
Person, by such Person and one or more of its other Subsidiaries or by one or
more of such Person’s other Subsidiaries.

 

“Subsidiary
Guarantors” means the Subsidiaries of the Co-Borrowers that are U.S.
Subsidiaries, and each other U.S. Subsidiary of any Co-Borrower that shall be
required to deliver an Assumption Agreement pursuant to this Agreement.

 

“Supermajority
Lenders” means those Lenders which are not Defaulting Lenders which would
constitute the Majority Lenders under, and as defined in, this Agreement, if
the reference to “a majority” contained therein were changed to “70.0%”.

 

“Swingline
Advance” has the meaning specified in Section 2.01(b).

 

“Swingline
Back-Stop Arrangements” has the meaning specified in Section 2.15(f).

 

“Swingline
Bank” means the Administrative Agent, in its capacity as Swingline Bank
hereunder.

 

“Swingline
Expiry Date” means that date which is five Business Days prior to the
Termination Date.

 

“Swingline
Note” means a promissory note of the Borrower payable to the order of the
Swingline Bank, in substantially the form of Exhibit A-2 hereto,
with blanks appropriately completed in conformity with this Agreement,
evidencing the aggregate indebtedness of the Borrower to the Swingline Bank
resulting from the Swingline Advances made by the Swingline Bank.

 

“Swingline
Sub-Limit” means $10,000,000.

 

“Syndication
Agent” means Credit Suisse Securities (USA) LLC.

 

“Synthetic
Lease” means a lease transaction under which the parties intend that (a) the
lease will be treated as an “operating lease” by the lessee and (b) the
lessee will be 

 

50

 

entitled
to various tax and other benefits ordinarily available to owners (as opposed to
lessees) of like property.

 

“Taxes”
has the meaning specified in Section 2.12(a).

 

“Termination
Date” means the earliest of (i) July 29, 2014, (ii) the date
on which the outstanding principal amount of the Advances become due and
payable, the Commitments of the Lenders and their obligations to make Advances
hereunder terminate, the obligation of any Issuing Bank to issue Letters of
Credit hereunder terminates and the cancellation and/or cash collateralization
of all outstanding Letters of Credit is required pursuant to Part I of Article IX
and (iii) the date of prepayment in full by the Borrower of the Advances
and the cancellation and/or cash collateralization of all outstanding Letters
of Credit and the permanent reduction of the Commitments to zero dollars ($0)
in accordance with Section 2.05.

 

“Third
Party Agreement” means (a) an agreement, in form and substance
reasonably acceptable to the Co-Collateral Agents and the Security Agent,
pursuant to which a landlord, warehouseman, processor, shipper, customs broker
or freight forwarder, repairman, mechanic, consignee, bailee or other third
party who stores, processes, maintains or holds Collateral acknowledges, among
other things, the Security Agent’s Lien on such Collateral, the Security Agent’s
ability to enforce its Lien on such Collateral and the subordination of any
Lien held by such landlord, warehouseman, processor, shipper, customs broker or
freight forwarder, repairman, mechanic, consignee, bailee or other third party
on such Collateral to the Security Agent’s Lien thereon or (b) an
agreement, in form and substance reasonably acceptable to the Co-Collateral
Agents, pursuant to which a holder of a Lien on premises of any Co-Borrower
where Eligible Inventory is located agrees and acknowledges, among other
things, that the Security Agent may without interference from such Lien holder (i) gain
access to, remove and exercise its rights against any Inventory located at such
premises after an Event of Default, and that such Lien holder may not remove or
exercise any remedies against such Inventory except as agreed, (ii) for a
period of time not less than ninety (90) days (or such shorter time period as
the Security Agent may agree in its sole discretion) after the Security Agent
shall have taken possession of such Inventory, (A) store such Inventory at
such premises and (B) conduct a sale of such Inventory at such premises
and (iii) examine and make copies of books and records of any Co-Borrower
located at such premises with respect to such Inventory.

 

“Total
Commitment” means, at any time, the sum of all Commitments of the Lenders
at such time.  The initial aggregate
amount of the Total Commitment of the Lenders on the Closing Date is
$75,000,000.

 

“Total
Leverage Ratio” means, on any date of determination, the ratio of (x) Consolidated
Total Debt of the Borrower on such date to (y) Consolidated EBITDA of the
Borrower for the Measurement Period most recently ended on or prior to such
date.

 

“Total
Unused Commitment” means at any time the amount equal to the remainder of (x) the
Total Commitment as in effect at such time minus (y) the Aggregate
Exposure at such time.

 

51

 

“Transaction”
means (a) the consummation of the Refinancing, (b) the execution,
delivery and performance by each Loan Party of the Loan Documents to which it
is to be a party, the making of Revolving Advances and the use of the proceeds
thereof and the issuance of Letters of Credit hereunder, in each case on the
Closing Date, (c) the execution, delivery and performance by each Loan
Party of the Senior Secured Notes Documents to which it is a party, the
issuance of the Senior Secured Notes and the use of proceeds thereof, in each
case, on the Closing Date and (d) the payment of all costs and expenses
associated with the foregoing.

 

“Type”
refers to the distinction between Advances bearing interest at the Base Rate
and Advances bearing interest at the LIBOR.

 

“UCC”
means the Uniform Commercial Code as from time to time in effect in the relevant
jurisdiction.

 

“Unfunded
Current Liability” of any Plan means the amount, if any, by which the
present value of the accumulated benefits under the Plan as of the close of its
most recent plan year, determined in accordance with Statement of Financial Accounting
Standards No. 87 as in effect on the date hereof, exceeds the fair market
value of the assets allocable thereto; provided that upon the direction
of the Administrative Agent (acting in its own discretion or at the request of
any Lender), the Unfunded Current Liability of each Plan shall be calculated as
set forth above but the present value of the accumulated benefits under such
Plan as of the close of its most recent plan year shall be based upon the
actuarial assumptions that would be used by the Plan’s actuary in a termination
of such Plan.

 

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

 

“Unmatured
Surviving Obligations” means Obligations under the Loan Documents which by
their terms survive the termination of this Agreement or any other Loan
Document, as applicable, and which, at the relevant time, are not then due and
payable.

 

“Unrestricted”
means, when referring to cash or Cash Equivalents of the Borrower or any of its
Subsidiaries, that such cash or Cash Equivalents are not Restricted.

 

“Unused
Commitment” means, with respect to any Lender at any time, (a) such
Lender’s Commitment at such time minus (b) the sum of (i) the
aggregate principal amount of all Revolving Advances, made by such Lender and
outstanding at such time, plus (ii) such Lender’s Pro Rata Share of
(A) the aggregate principal amount of all Swingline Advances made by the
Swingline Bank pursuant to Section 2.01(b) and outstanding at
such time, (B) the aggregate Available LC Amount of all Letters of Credit
outstanding at such time and (C) the aggregate principal amount of all
Letter of Credit Advances made by each Issuing Bank pursuant to Section 2.03(e) and
outstanding at such time.

 

“U.S.
Dollar Equivalent” of an amount denominated in a currency other than U.S.
Dollars means, at any time for the determination thereof, the amount of U.S.
Dollars which could be purchased with the amount of such currency involved in
such computation at the spot exchange rate therefor as quoted by the
Administrative Agent as of 11:00 A.M. (New York time) on the date two
Business Days prior to the date of any determination thereof for purchase on
such date.

 

52

 

“U.S.
Person” means any Person which is organized under the laws of a
jurisdiction of the United States.

 

“U.S.
Subsidiary” means each Subsidiary of the Borrower incorporated or organized
in the United States or any State or territory thereof.

 

“USA
Patriot Act” means USA PATRIOT Improvement and Reauthorization Act, Title
III of Pub. L. 109-177 (as signed into law March 9, 2009) (as amended from
time to time).

 

“Value”
means for Inventory, its value determined on the basis of the lower of cost or
market, calculated on a first-in, first out basis, and excluding any reserves
established by the Co-Borrowers and any portion of cost attributable to
intercompany profit among the Co-Borrowers.

 

“Voting
Stock” means capital stock issued by a corporation, or equivalent interests
in any other Person, the holders of which are ordinarily, in the absence of
contingencies, entitled to vote for the election of directors (or persons
performing similar functions) of such Person, even if the right so to vote has
been suspended by the happening of such a contingency.

 

“Wholly-Owned
Subsidiary” means, as to any Person, (i) any corporation 100% of whose
Equity Interests (other than director’s qualifying shares and/or other nominal
amounts of shares required by applicable law to be held by Persons other than
such Person) is at the time owned by such Person and/or one or more
Wholly-Owned Subsidiaries of such Person and (ii) any partnership,
association, joint venture or other entity in which such Person and/or one or
more Wholly-Owned Subsidiaries of such Person has a 100% Equity Interest at
such time.

 

“Wholly-Owned
U.S. Subsidiary” means, as to any Person, any Wholly-Owned Subsidiary of
such Person which is also a U.S. Subsidiary of such Person.

 

“Work-in-Process”
means Inventory which consists of work-in-process including, without
limitation, materials other than Raw Materials, or Finished Goods, title to
which and sole ownership of which is vested in a Co-Borrower.

 

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

 

Section 1.02  Computation of Time Periods.  In this Agreement, in the computation of
periods of time from a specified date to a later specified date, the word “from”
means “from and including” and the words “to” and “until” each mean “to but
excluding”.

 

Section 1.03  Accounting Terms.  The financial statements to be furnished to
the Lender Parties pursuant hereto shall be made and prepared in accordance
with GAAP and all computations and all definitions (including accounting
terms) used in determining compliance with Article VI and Article VIII
shall utilize GAAP; provided that if GAAP and related policies are not
in conformity with those used to prepare the financial statements referred to
in Section 4.01(f)(i), then either the Borrower or the Majority
Lenders may request an amendment to this Agreement to take into account such
changes in GAAP or related policies and until such amendment becomes effective
then such computations and definitions used in determining 

 

53

 

compliance
with Article VI and Article VIII shall utilize GAAP and
related policies in conformity with those used to prepare the financial
statements referred to in Section 4.01(f)(i).

 

Section 1.04  FASB ASC 825.  Notwithstanding any other provision contained
herein or in any other Loan Document, all terms of an accounting or financial
nature used herein or in any other Loan Document shall be construed, and all
computations of amounts and ratios referred to herein or in any other Loan
Document shall be made at all times hereafter, without giving effect to any
election under FASB ASC 825 (or any other accounting principle having a similar
result or effect) to value any Debt or other liabilities of any Loan Party or
any Subsidiary of any Loan Party at “fair value”, as defined therein.

 

Section 1.05  Currency Equivalent.  For purposes of construction of the terms
hereof, the equivalent in another currency of an amount in U.S. Dollars shall
be determined by using the quoted spot rate at which DBTCA’s principal office
in New York City offers to purchase such other currency with the equivalent in
dollars in New York City at 9:00 A.M. (New York City time) on the date on
which such equivalent is to be determined.

 

Section 1.06  Uniform Commercial Code.  Unless otherwise defined herein or in the
other Loan Documents, terms used herein which are defined in the UCC as in
effect in the State of New York from time to time are used herein as therein
defined.

 

ARTICLE II

 

Amounts
and Terms of the Advances and the Letters of Credit

 

Section 2.01  Revolving Advances and Swingline Advances.

 

(a)           Revolving Advances. 
Each Lender severally agrees, on the terms and conditions hereinafter
set forth, to make advances (each a “Revolving Advance”) to the
Co-Borrowers from time to time on any Business Day during the period from the
Closing Date until the Termination Date; provided that a Revolving
Advance shall not be made (and shall not be required to be made) by any Lender
in any instance where the incurrence thereof (after giving effect to the use of
the proceeds thereof on the date of the incurrence thereof to repay any amounts
theretofore outstanding pursuant to this Agreement) would cause (i) the
Individual Exposure of such Lender to exceed the amount of its Commitment at
such time, (ii) the Aggregate Exposure (after giving effect to the use of
the proceeds thereof on the date of the incurrence thereof to repay any amounts
theretofore outstanding pursuant to this Agreement) to exceed the lesser of the
Total Commitment at such time and the Borrowing Base at such time or (iii) until,
but not following, such time as the Minimum Excess Availability Condition is
satisfied, the Aggregate Exposure to exceed the Adjusted Total Commitment.  Each Borrowing shall be in an aggregate
amount of $1,000,000 or an integral multiple of $250,000 in excess thereof
(other than a Borrowing the proceeds of which shall be used solely to repay or
prepay in full outstanding Swingline Advances or Letter of Credit Advances) and
shall consist of Revolving Advances made simultaneously by the Lenders ratably
according to their Commitments.  The
Co-Borrowers may borrow under this Section 2.01, prepay pursuant to
Section 2.06(a) and reborrow under this Section 2.01
in accordance with the provisions of this Agreement.

 

54

 

(b)           Swingline Advances. 
The Funds Administrator may request the Swingline Bank to make, and the
Swingline Bank shall make, on the terms and conditions hereinafter set forth, a
revolving loan or revolving loans (each, a “Swingline Advance” and
collectively, the “Swingline Advances”) to the applicable Co-Borrowers
from time to time on any Business Day during the period from the Closing Date
until the Swingline Expiry Date in an aggregate amount not to exceed at any
time outstanding the lesser of (i) the Swingline Sub-Limit and (ii) an
amount that would not cause the Aggregate Exposure (after giving effect to the
use of the proceeds thereof on the date of the incurrence thereof to repay any
amounts theretofore outstanding pursuant to this Agreement) to exceed the
lesser of (x) until, but not following, such time as the Minimum Excess
Availability Condition is satisfied, the Adjusted Total Commitment, (y) the
Total Commitment at such time and (z) the Borrowing Base at such
time.  No Swingline Advance shall be used
for the purpose of funding the payment of principal of any other Swingline
Advance.  Each Swingline Advance shall be
in an amount of $500,000 or an integral multiple of $100,000 in excess thereof
and shall be made as a Base Rate Advance. 
Within the limits of the Swingline Sub-Limit and within the limits
referred to in clause (ii) above, the Co-Borrowers may borrow under this Section 2.01(b),
repay pursuant to Section 2.04(b) or prepay pursuant to Section 2.06(a) and
reborrow under this Section 2.01(b).

 

(c)           In the event that the Co-Borrowers are unable to comply
with the conditions precedent to the making of Revolving Advances set forth in Section 3.02
(including, without limitation, the Borrowing Base limitations set forth in Section 3.02(d)),
the Lenders, subject to the immediately succeeding proviso, hereby authorize
the Administrative Agent, for the account of the Lenders, to make Revolving
Advances to the applicable Co-Borrower solely in the event that the
Administrative Agent or the Security Agent in its respective Permitted
Discretion deems necessary or desirable (i) to preserve or protect the
Collateral, or any portion thereof, (ii) to enhance the likelihood of repayment
of the Obligations under the Loan Documents, or (iii) to pay any other
amount chargeable to the applicable Co-Borrower pursuant to the terms of this
Agreement; provided that such Revolving Advances may only be made as
Base Rate Advances, as determined by the Administrative Agent or Security Agent
(each, an “Agent Advance”), for a period commencing on the date the
Administrative Agent or Security Agent first receives a Notice of Revolving
Borrowing requesting an Agent Advance until the earliest of (x) the
twentieth (20th) Business Day after such date, (y) the date the respective
Co-Borrower is again able to comply with the applicable Borrowing Base
limitations and the conditions precedent to the making of Revolving Advances,
or obtain an amendment or waiver with respect thereto and (z) the date the
Majority Lenders instruct the Administrative Agent or the Security Agent, as
the case may be, to cease making Agent Advances (in each case, the “Agent
Advance Period”); provided  further that the Administrative
Agent and the Security Agent shall not make any Agent Advance to the extent
that at the time of the making of such Agent Advance, (I) the amount of
such Agent Advance when added to the aggregate outstanding amount of all other
Agent Advances made to, if such Agent Advance is a Revolving Advance, the
Borrower at such time, would exceed 5% of the Borrowing Base at such time
(each, an “Agent Advance Amount”), (II) until, but not following,
such time as the Minimum Excess Availability Condition is satisfied, the amount
of such Agent Advance (after giving effect to thereto) would cause the
Aggregate Exposure to exceed the Adjusted Total Commitment at such time or (III) the
amount of such Agent Advance (after giving effect to thereto) would cause the
Aggregate Exposure to exceed the Total Commitment at such time.  Agent Advances may be made by the
Administrative Agent or the Security Agent in its sole discretion and the Co-

 

55

 

Borrowers shall not have any right whatsoever to
require that any Agent Advances be made, provided that the
Administrative Agent or the Security Agent, as the case may be, shall promptly
notify the Funds Administrator following the occurrence of an Agent
Advance.  Agent Advances will be subject
to periodic settlement with the applicable Lenders pursuant to Section 2.02(g).

 

Section 2.02  Making Revolving Advances and Swingline
Advances.

 

(a)           Revolving Advances. 
Each Borrowing shall be made on notice, given not later than 12:00 P.M.
(New York City time) on the third (3rd) Business Day prior to the date of the
proposed Borrowing in the case of a Borrowing consisting of LIBOR Advances, or
the first Business Day prior to the date of the proposed Borrowing in the case
of a Borrowing consisting of Base Rate Advances (including Agent Advances, but
excluding for this purpose Swingline Advances and Revolving Advances made
pursuant to a Mandatory Borrowing) by the Funds Administrator (or, in the case
of Agent Advances, the Administrative Agent) to the Administrative Agent, which
shall give to each Lender prompt notice thereof by telecopier or electronic
mail.  Each such notice of a Borrowing (a
“Notice of Revolving Borrowing”) shall be by telephone, confirmed
immediately in writing by telecopier or electronic mail in PDF format, in
substantially the form of Exhibit B hereto, specifying therein the
requested (i) date of such Borrowing, (ii) Type of Advances
comprising such Borrowing (including whether the Revolving Advances made
pursuant to such Borrowing constitute Agent Advances (it being understood that
the Administrative Agent and the Security Agent shall be under no obligation to
make such Agent Advance)) and (iii) aggregate amount of such
Borrowing.  Each Lender shall, before
12:00 P.M. (New York City time) on the date of such Borrowing, make
available for the account of its Lending Office to the Administrative Agent at
the Administrative Agent’s Account, in same day funds, such Lender’s ratable
portion of such Borrowing in accordance with the respective Commitments of such
Lender and the other Lenders.  After the
Administrative Agent’s receipt of such funds and upon fulfillment of the
applicable conditions set forth in Article III, the Administrative Agent
will make such funds available to the applicable Co-Borrower by crediting the
Borrower’s Account, for onward transmission to the bank account notified to the
Administrative Agent by the Co-Borrower from time to time into which monies are
permitted to be deposited in accordance with the provisions of this Agreement; provided,
however, that the Administrative Agent shall first make a portion of
such funds equal to the aggregate principal amount of any Swingline Advances
made by the Swingline Bank or any Letter of Credit Advances made by any Issuing
Bank and outstanding on the date of such Borrowing, plus interest accrued and
unpaid thereon to and as of such date, available to the Swingline Bank or to
such Issuing Bank, as the case may be, for repayment of such Swingline Advances
or such Letter of Credit Advances.

 

(b)           Swingline Advances. Each Swingline Advance shall be
made on notice, given not later than 1:00 P.M. (New York City time) on the
date of the proposed Swingline Advance, by the Funds Administrator to the
Swingline Bank and the Administrative Agent. 
Each such notice of a Swingline Advance (a “Notice of Swingline
Borrowing”) shall be made by telephone, and confirmed immediately in
writing by telecopier or electronic mail in PDF format, in substantially the
form of Exhibit C-1 hereto, and shall specify in each case (i) the
date of such Swingline Advance, (ii) the amount of such Swingline Advance
and (iii) the maturity of such Swingline Advance (which maturity shall be
no later than the Swingline Expiry Date). 
The Swingline Bank will make the amount thereof available to the
Administrative Agent at the 

 

56

 

Administrative Agent’s Account, in same day
funds.  After the Administrative Agent’s
receipt of such funds and upon fulfillment of the applicable conditions set
forth in Article III, the Administrative Agent will make such funds
available to the applicable Co-Borrower by crediting the Borrower’s Account,
for onward transmission to the bank account notified to the Administrative
Agent by such Co-Borrower from time to time into which monies are permitted to
be deposited in accordance with the provisions of this Agreement.  On any Business Day, (x) the Swingline
Bank may, in its sole discretion, give notice to the Lenders, with a copy of
notice to the Administrative Agent, and (y) any Lender may, in its sole
discretion, give written notice (a “Notice of Swingline Redemption”) in
substantially the form of Exhibit C-2 hereto to the Administrative Agent,
with a copy of such notice to the Swingline Bank and to the other Lenders, that
the Swingline Bank’s outstanding Swingline Advances shall be funded with one or
more Borrowings of Revolving Advances (provided that such notice shall
be deemed to have been automatically given upon the occurrence of a Default or
an Event of Default under Part I of Article IX or upon the exercise
of any of the remedies provided in the last paragraph of Part I of Article IX),
in which case one or more Borrowings of Revolving Advances constituting Base
Rate Advances (each such Borrowing, a “Mandatory Borrowing”) shall be
made on the immediately succeeding Business Day by all Lenders pro rata based
on each such Lender’s Pro Rata Share as of the date of such demand (determined
before giving effect to any termination of the Commitments pursuant to the last
paragraph of Part I of Article IX) and the proceeds thereof shall be
applied directly by the Swingline Bank to repay the Swingline Bank for such
outstanding Swingline Advances.  Each
Lender hereby irrevocably agrees to make Revolving Advances upon one (1) Business
Day’s notice pursuant to each Mandatory Borrowing in the amount and in the
manner specified in the preceding sentence and on the date specified in writing
by the Swingline Bank or the applicable Lender, as the case may be, notwithstanding
(i) the amount of the Mandatory Borrowing may not comply with any minimum
borrowing amount otherwise required hereunder, (ii) whether any conditions
specified in Article III are then satisfied, (iii) whether a Default
or an Event of Default then exists, (iv) the date of such Mandatory
Borrowing, and (v) the amount of the Total Commitment at such time.  In the event that any Mandatory Borrowing
cannot for any reason be made on the date otherwise required above, then each
Lender hereby agrees that it shall forthwith purchase (as of the date the
Mandatory Borrowing would otherwise have occurred, but adjusted for any
payments received from the applicable Co-Borrower on or after such date and
prior to such purchase) from the Swingline Bank, and the Swingline Bank shall
sell and assign to each such other Lender, such participations in the
outstanding Swingline Advances as shall be necessary to cause the Lenders to
share in such Swingline Advances ratably based upon their respective Pro Rata
Share as of the date of such demand (determined before giving effect to any
termination of the Commitments pursuant to the last paragraph of Part I of
Article IX), by making available for the account of its Lending Office to
the Administrative Agent for the account of the Swingline Bank, by deposit to
the Administrative Agent’s Account, in same day funds, an amount equal to the
portion of the participation in the outstanding principal amount of such
Swingline Advance to be purchased by such Lender, provided that (x) all interest
payable on the Swingline Advances shall be for the account of the Swingline
Bank until the date as of which the respective participation is required to be
purchased and, to the extent attributable to the purchased participation, shall
be payable to the participant from and after such date and (y) at the time
any purchase of participations pursuant to this sentence is actually made, the
purchasing Lender shall be required to pay the Swingline Bank interest on the
principal amount of participation purchased for each day from 

 

57

 

and including the day upon which the Mandatory
Borrowing would otherwise have occurred to but excluding the date of payment
for such participation, at the overnight Federal Funds Rate for the first three
days and at the interest rate otherwise applicable to Revolving Advances
maintained as Base Rate Advances hereunder for each day thereafter.  Each Co-Borrower hereby agrees to each such
sale and assignment of participations in Swingline Advances.  Each Lender agrees to purchase its Pro Rata
Share of a participation in an outstanding Swingline Advance on (i) the
Business Day on which demand therefor is made by the Swingline Bank or the
applicable Lender, as the case may be; provided that notice of such
demand is given not later than 1:00 P.M. (New York City time) on such
Business Day or (ii) the first Business Day next succeeding such demand if
notice of such demand is given after such time. 
Upon any such assignment by the Swingline Bank to any other Lender of a
participation in a Swingline Advance, the Swingline Bank represents and
warrants to such other Lender that the Swingline Bank is the legal and
beneficial owner of such participation being assigned by it, but makes no other
representation or warranty and assumes no responsibility with respect to such
participation in such Swingline Advance, the Loan Documents or any Loan Party.

 

(c)           Mandatory Borrowings shall be made upon the notice
specified in Section 2.02(b) above, with the applicable
Co-Borrower irrevocably agreeing, by its incurrence of any Swingline Advance,
to the making of the Mandatory Borrowings as set forth in Section 2.02(b) above.

 

(d)           Anything in subsection (a) above to the contrary
notwithstanding, (i) a Co- Borrower may not select LIBOR Advances for any
Borrowing if the aggregate amount of such Borrowing is less than $1,000,000 or
if the obligation of the Lenders to make LIBOR Advances shall then be suspended
pursuant to Section 2.09 or Section 2.10 and (ii) the
Revolving Advances made on any date may not be outstanding on any date as part
of more than ten separate Borrowings.

 

(e)           Each Notice of Revolving Borrowing and Notice of Swingline
Borrowing shall be irrevocable and binding on the applicable Co-Borrower.  In the case of any Borrowing that the related
Notice of Revolving Borrowing specifies is to be comprised of LIBOR Advances,
the Co-Borrowers shall indemnify each Lender against any loss, cost or expense
incurred by such Lender as a result of any failure to fulfill on or before the
date specified in such Notice of Revolving Borrowing for such Borrowing, the
applicable conditions set forth in Article III, including, without
limitation, any loss (including loss of anticipated profits), cost or expense
incurred by reason of the liquidation or reemployment of deposits or other
funds acquired by such Lender to fund the LIBOR Advance to be made by such
Lender as part of such Borrowing when such LIBOR Advance, as a result of such
failure, is not made on such date, other than any such failure that results
from the Administrative Agent giving a notice under Section 2.07(d) or
a Lender giving notice pursuant to Section 2.10(c).

 

(f)            Unless the Administrative Agent shall have received
notice from a Lender prior to the date of any Borrowing that such Lender will
not make available to the Administrative Agent such Lender’s ratable portion of
such Borrowing, the Administrative Agent may assume that such Lender has made
such portion available to the Administrative Agent on the date of such
Borrowing in accordance with subsection (a) or (b) of this Section 2.02
and the Administrative Agent may, in reliance upon such assumption, make
available to the applicable Co-Borrower on 

 

58

 

such date a corresponding amount.  If and to the extent that such Lender shall
not have so made such ratable portion available to the Administrative Agent,
such Lender and each Co-Borrower severally agree to repay or pay to the
Administrative Agent forthwith on demand such corresponding amount and to pay
interest thereon, for each day from the date such amount is made available to
the applicable Co-Borrower until the date such amount is repaid or paid to the
Administrative Agent, at (i) in the case of the Co-Borrower, the interest
rate applicable at such time under Section 2.07 to Advances
comprising such Borrowing and (ii) in the case of the Lender, the Federal
Funds Rate.  If such Lender shall pay to
the Administrative Agent such corresponding amount, such amount so paid shall
constitute such Lender’s Revolving Advance as part of such Borrowing for all
purposes.

 

(g)           Agent Advances made pursuant to Section 2.01(c) shall
be subject to periodic settlement as follows:

 

(i)            The
amount of each Lender’s Pro Rata Share, as the case may be, of Revolving
Advances shall be computed weekly (or more frequently in the Administrative
Agent’s sole discretion) and shall be adjusted upward or downward on the basis
of the amount of outstanding Revolving Advances as of 5:00 P.M. (New York
City time) on the last Business Day of each week, or such other period
specified by the Administrative Agent (each such date, a “Settlement Date”).  The applicable Lenders shall transfer to the
Administrative Agent, or the Administrative Agent shall transfer to the
applicable Lenders, such amounts as are necessary so that (after giving effect
to all such transfers) the amount of Revolving Advances made by each Lender
shall be equal to such Lender’s Pro Rata Share, as the case may be, of the aggregate
amount of Revolving Advances outstanding as of such Settlement Date.  If a notice from the Administrative Agent of
any such necessary transfer is received by a Lender on or prior to 12:00 Noon
(New York City time) on any Business Day, then such Lender shall make transfers
described above in immediately available funds no later than 3:00 P.M.
(New York City time) on the day such notice was received; and if such notice is
received by a Lender after 12:00 Noon (New York City time) on any Business Day,
such Lender shall make such transfers no later than 1:00 P.M. (New York
City time) on the next succeeding Business Day. 
The obligation of each of the Lenders to transfer such funds shall be
irrevocable and unconditional and without recourse to, or without
representation or warranty by, the Administrative Agent.  Each of the Administrative Agent and each
Lender agrees and the Lenders agree to mark their respective books and records
on each Settlement Date to show at all times the dollar amount of their respective
Pro Rata Share, as the case may be, of the outstanding Revolving Advances on
such date.

 

(ii)           To
the extent that the settlement described in preceding clause (i) shall not
yet have occurred with respect to any particular Settlement Date, upon any repayment
of Revolving Advances by any Co-Borrower prior to such settlement, the
Administrative Agent may apply such amounts repaid directly to the amounts that
would otherwise be made available by the Administrative Agent pursuant to this Section 2.02(g).

 

(iii)          Because
the Administrative Agent on behalf of the Lenders may be advancing and/or may
be repaid Revolving Advances prior to the time when such Lenders will actually
advance and/or be repaid such Revolving Advances, interest with 

 

59

 

respect to such Revolving Advances shall be allocated by the
Administrative Agent as Base Rate Advances to each such Lender and the
Administrative Agent in accordance with the amount of such Revolving Advances
actually advanced by and repaid to each such Lender and the Administrative
Agent and shall accrue from and including the date such Revolving Advances are
so advanced to but excluding the date such Revolving Advances are repaid by any
Co-Borrower, in accordance with the terms of this Agreement or actually settled
by the Administrative Agent or the applicable Lender as described in this Section 2.02(g).

 

(h)           The failure of any Lender to make the Advance to be made
by it as part of any Borrowing shall not relieve any other Lender of its
obligation, if any, hereunder to make its Advance on the date of such
Borrowing, but no Lender shall be responsible for the failure of any other
Lender to make the Advance to be made by such other Lender on the date of any
Borrowing.

 

Section 2.03  Issuance of and Drawings and
Reimbursements Under Letters of Credit.

 

(a)           Letters of Credit.

 

(i)            Subject
to and upon the terms and conditions set forth herein, the Funds Administrator
may request that an Issuing Bank issue, at any time and from time to time on
and after the Closing Date and prior to the 5th Business Day prior to the
Termination Date, for the account of the applicable Co-Borrower and for the
benefit of (x) any holder (or any trustee, agent or other similar
representative for any such holders) of L/C Supportable Obligations, an
irrevocable standby letter of credit, in a form customarily used by such
Issuing Bank or in such other form as is reasonably acceptable to such Issuing
Bank, and (y) sellers of goods to the Co-Borrowers or any of their
Subsidiaries, an irrevocable trade letter of credit, in a form customarily used
by such Issuing Bank or in such other form as has been approved by such Issuing
Bank (each such letter of credit, a “Letter of Credit” and,
collectively, the “Letters of Credit”). 
All Letters of Credit shall be denominated in U.S. Dollars and shall be
issued on a sight basis only.

 

(ii)           Subject
to and upon the terms and conditions set forth herein, each Issuing Bank agrees
that it will, at any time and from time to time on and after the Closing Date
and prior to the 5th Business Day prior to the Termination Date, following its
receipt of the respective Letter of Credit Request, issue for the account of
the applicable Co-Borrower (or renew or extend), one or more Letters of Credit
as are permitted to remain outstanding hereunder without giving rise to a
Default or an Event of Default, provided that no Issuing Bank shall be
under any obligation to issue (or renew or extend) any Letter of Credit of the
types described and permitted above if at the time of such issuance (or renewal
or extension):

 

(A)          any order, judgment or decree of any Governmental Authority
or arbitrator shall purport by its terms to enjoin or restrain such Issuing
Bank from issuing such Letter of Credit or any requirement of law applicable to
such Issuing Bank or any request or directive (whether or not having the force
of law) from 

 

60

 

any Governmental Authority with jurisdiction
over such Issuing Bank shall prohibit, or request that such Issuing Bank
refrain from, the issuance of letters of credit generally or such Letter of
Credit in particular or shall impose upon such Issuing Bank with respect to
such Letter of Credit any restriction or reserve or capital requirement (for
which such Issuing Bank is not otherwise compensated hereunder) not in effect
with respect to such Issuing Bank on the date hereof, or any unreimbursed loss,
cost or expense which was not applicable or in effect with respect to such Issuing
Bank as of the date hereof and which such Issuing Bank reasonably and in good
faith deems material to it; or

 

(B)           such Issuing Bank shall have received from the applicable
Co-Borrower, any other Loan Party or the Majority Lenders prior to the issuance
of such Letter of Credit notice of the type described in the second sentence of
Section 2.03(c)(ii).

 

(b)           Maximum Letter of Credit Outstandings; Final Maturities.  Notwithstanding anything to the contrary
contained in this Agreement, (i) no Letter of Credit shall be issued the
Available LC Amount of which, when added to the Letter of Credit Outstandings
(exclusive of Letter of Credit Advances which are repaid on the date of, and
prior to the issuance of, the respective Letter of Credit) at such time would exceed
the lesser of (x) the Letter of Credit Sub-Limit at such time, (y) an
amount that would cause the Aggregate Exposure (after giving effect to such
issuance) to exceed the Total Commitment at such time and (z) until, but
not following, such time as the Minimum Excess Availability Condition is
satisfied, an amount that would cause the Aggregate Exposure (after giving
effect to such issuance) to exceed the Adjusted Total Commitment, (ii) no
Letter of Credit shall be issued (or required to be issued) at any time when
the Aggregate Exposure exceeds (or would after giving effect to such issuance
exceed) 100% of the Borrowing Base (or, during an Agent Advance Period, 105%)
at such time and (iii) each Letter of Credit (whether being issued for the
first time or being renewed or extended) shall by its terms terminate (x) in
the case of standby Letters of Credit, on or before the earlier of (A) the
date which occurs 12 months after the date of issuance (or renewal or
extension) thereof and (B) five Business Days prior to the Termination
Date and (y) in the case of trade Letters of Credit, on or before the
earlier of (A) the date which occurs 180 days after the date of issuance
(or renewal or extension) thereof and (B) five (5) Business Days
prior to the Termination Date. 
Notwithstanding anything to the contrary contained in this Section 2.03(b),
the Issuing Banks shall be permitted to issue standby Letters of Credit that
are automatically renewed (unless such Issuing Bank provides a notice of
non-renewal) for a period that ends on the earlier of (x) the date which
occurs 12 months after the date of such renewal and (y) five (5) Business
Days prior to the Termination Date.

 

(c)           Letter of Credit Requests, Minimum Stated Amount.

 

(i)            Whenever
a Co-Borrower desires that a Letter of Credit be issued for its account, the
Funds Administrator shall give the Administrative Agent and the respective
Issuing Bank at least five Business Days’ (or such shorter period as is
acceptable to such Issuing Bank) written notice thereof (including by way of
telecopier or email).  Each notice shall
be in the form of Exhibit D, appropriately completed (each, a “Letter
of Credit Request”).

 

61

 

(ii)           The
making of each Letter of Credit Request shall be deemed to be a representation
and warranty by the applicable Co-Borrower to the Lenders that such Letter of
Credit may be issued in accordance with, and will not violate the requirements
of, Section 2.03(b).  Unless
the respective Issuing Bank has received notice from the Funds Administrator,
any Co-Borrower, any other Loan Party or the Majority Lenders before it issues
a Letter of Credit that one or more of the conditions specified in Article III
are not then satisfied, or that the issuance of such Letter of Credit would
violate Section 2.03(b), then such Issuing Bank shall, subject to
the terms and conditions of this Agreement, issue the requested Letter of
Credit for the account of the applicable Co-Borrower in accordance with such
Issuing Bank’s usual and customary practices. 
Upon the issuance of any Letter of Credit, or modification or amendment
to any standby Letter of Credit, each Issuing Bank shall promptly notify the
Funds Administrator and the Administrative Agent, in writing of such issuance,
modification or amendment and such notice shall be accompanied by a copy of
such Letter of Credit or the respective modification or amendment thereto, as
the case may be.  Promptly after receipt
of such notice, the Administrative Agent shall notify the Participants, in
writing, of such issuance, modification or amendment.  On the first Business Day of each week, each
Issuing Bank shall furnish the Administrative Agent with a written (including
via telecopier or email) report of the daily aggregate outstandings of trade
Letters of Credit issued by such Issuing Bank for the immediately preceding
week.  The initial Available LC Amount of
each Letter of Credit shall not be less than $100,000  or such lesser amount as is acceptable to the respective
Issuing Bank.

 

(d)           Letters of Credit Participations.

 

(i)            Immediately
upon the issuance by an Issuing Bank of any Letter of Credit, such Issuing Bank
shall be deemed to have sold and transferred to each Lender, and each such
Lender (in its capacity under this Section 2.03(d), a “Participant”)
shall be deemed irrevocably and unconditionally to have purchased and received
from such Issuing Bank, without recourse or warranty, an undivided interest and
participation, to the extent of such Participant’s Pro Rata Share, in such
Letter of Credit, each drawing or payment made thereunder and the obligations
of the applicable Co-Borrower under this Agreement with respect thereto, and
any security therefor or guarantee pertaining thereto.  Upon any change in the Commitments or Pro
Rata Shares of the Lenders pursuant to Section 11.07, it is hereby
agreed that, with respect to all outstanding Letters of Credit and Letter of
Credit Advances relating thereto, there shall be an automatic adjustment to the
participations pursuant to this Section 2.03(d) to reflect the
new Pro Rata Shares of the assignor and assignee Lender, as the case may
be.  Further, if any Letter of Credit
expires without being drawn or replaced or if the original of any Letter of
Credit is returned to the Issuing Bank without such Letter of Credit being
drawn or replaced, then the aggregate amount of participations pursuant to this
Section 2.03(d) shall be automatically and permanently reduced
by the Available LC Amount of such Letter of Credit and each such reduction
shall be made ratably among the Participants.

 

(ii)           In
determining whether to pay under any Letter of Credit, no Issuing Bank shall
have any obligation relative to the other Lenders other than to confirm that
any documents required to be delivered under such Letter of Credit appear to
have been 

 

62

 

delivered and that they appear to substantially comply on their face
with the requirements of such Letter of Credit. 
Any action taken or omitted to be taken by an Issuing Bank under or in
connection with any Letter of Credit issued by it shall not create for such
Issuing Bank any resulting liability to any Co-Borrower, any other Loan Party,
any Lender or any other Person unless such action is taken or omitted to be
taken with gross negligence or willful misconduct on the part of such Issuing
Bank (as determined by a court of competent jurisdiction in a final and
non-appealable decision).

 

(iii)          In
the event that an Issuing Bank makes a Letter of Credit Advance under any
Letter of Credit issued by it and the applicable Co-Borrower shall not have
reimbursed such amount in full to such Issuing Bank pursuant to Section 2.03(e)(i),
such Issuing Bank shall promptly notify the Administrative Agent, which shall
promptly notify each Participant of such lack of reimbursement, and each
Participant shall promptly and unconditionally pay to such Issuing Bank the
amount of such Participant’s Pro Rata Share of such unreimbursed payment in
U.S. Dollars and in same day funds.  If the
Administrative Agent so notifies, prior to 12:00 Noon (New York City time) on
any Business Day, any Participant required to fund a payment under a Letter of
Credit, such Participant shall make available to the respective Issuing Bank in
U.S. Dollars such Participant’s Pro Rata Share of the amount of such payment on
such Business Day in same day funds.  If
and to the extent such Participant shall not have so made its Pro Rata Share of
the amount of such payment available to the respective Issuing Bank, such
Participant agrees to pay to such Issuing Bank, forthwith on demand, such
amount, together with interest thereon, for each day from such date until the
date such amount is paid to such Issuing Bank at the overnight Federal Funds
Rate for the first three days and at the interest rate applicable to Base Rate
Advances for each day thereafter.  The
failure of any Participant to make available to an Issuing Bank its Pro Rata
Share of any payment under any Letter of Credit issued by such Issuing Bank
shall not relieve any other Participant of its obligation hereunder to make
available to such Issuing Bank its Pro Rata Share of any payment under any
Letter of Credit on the date required, as specified above, but no Participant
shall be responsible for the failure of any other Participant to make available
to such Issuing Bank such other Participant’s Pro Rata Share of any such
payment.

 

(iv)          Whenever
an Issuing Bank receives a payment of a reimbursement obligation as to which it
has received any payments from the Participants pursuant to Section 2.03(d)(iii) above,
such Issuing Bank shall pay to each such Participant that has paid its Pro Rata
Share thereof, in U.S. Dollars and in same day funds, an amount equal to such
Participant’s share (based upon the proportionate aggregate amount originally
funded by such Participant to the aggregate amount funded by all Participants)
of the principal amount of such reimbursement obligation and interest thereon
accruing after the purchase of the respective participations.

 

(v)           Upon
the request of any Participant, each Issuing Bank shall furnish to such
Participant copies of any Letter of Credit issued by it and such other
documentation as may reasonably be requested by such Participant.

 

63

 

(vi)          The
obligations of the Participants to make payments to each Issuing Bank with
respect to Letters of Credit shall be irrevocable and not subject to any
qualification or exception whatsoever and shall be made in accordance with the
terms and conditions of this Agreement under all circumstances, including,
without limitation, any of the following circumstances:

 

(A)          any lack of validity or enforceability of this Agreement or
any of the other Loan Documents;

 

(B)           the existence of any claim, setoff, defense or other right
which any Co-Borrower or any of their Subsidiaries may have at any time against
a beneficiary named in a Letter of Credit, any transferee of any Letter of
Credit (or any Person for whom any such transferee may be acting), the Administrative
Agent, any Participant, or any other Person, whether in connection with this
Agreement, any Letter of Credit, the transactions contemplated herein or any
unrelated transactions (including any underlying transaction between any
Co-Borrower or any Subsidiary of any Co-Borrower and the beneficiary named in
any such Letter of Credit);

 

(C)           any draft, certificate or any other document presented
under any Letter of Credit proving to be forged, fraudulent, invalid or
insufficient in any respect or any statement therein being untrue or inaccurate
in any respect;

 

(D)          the surrender or impairment of any security for the
performance or observance of any of the terms of any of the Loan Documents; or

 

(E)           the occurrence of any Default or Event of Default.

 

(e)           Agreement to Repay Letter of Credit Advances.

 

(i)            Not
later than 12:00 Noon (New York City time) on the first Business Day (the “LC
Payment Date”) following receipt by the Funds Administrator of notice of
any payment or disbursement made by such Issuing Bank under any Letter of
Credit issued by it (each such amount, so paid until reimbursed by the
Borrower, a “Letter of Credit Advance”), either (x) the applicable
Co-Borrowers shall reimburse the Issuing Bank, by making payment in an amount
in U.S. Dollars equal to such Letter of Credit Advance to the Administrative
Agent in immediately available funds at its Lending Office on the LC Payment
Date, for the account of such Issuing Bank, or (y) to the extent such
reimbursement is not made prior to 12:00 Noon (New York City time) on the LC
Payment Date, the Funds Administrator shall be deemed to have given a timely
Notice of Revolving Borrowing to the Administrative Agent requesting Lenders
with Commitments to make Base Rate Advances on the LC Payment Date in an amount
in U.S. Dollars equal to the amount of such Letter of Credit Advance, and
Lenders with Commitments shall, on the LC Payment Date, make Base Rate Advances
in the amount of such Letter of Credit Advance, the proceeds of which shall be
applied directly by the Administrative Agent to reimburse such Issuing Bank for
the amount of such Letter of Credit Advance.

 

64

 

(ii)           Each
Lender hereby irrevocably agrees to make Base Rate Advances in the amount and
in the manner specified in the preceding clause (i) on the LC Payment Date (A)
notwithstanding that the amount of the Base Rate Advance may not comply with
any minimum borrowing amount otherwise required hereunder, (B) whether any
conditions specified in Section 3.02 are then satisfied, (C) whether a
Default or an Event of Default then exists and (D) notwithstanding any failure
by the Funds Administrator to provide any actual timely Notice of Revolving
Borrowing.

 

(iii)          In
the event that any Base Rate Advance cannot for any reason be made on the LC
Payment Date as required under clauses (i) and (ii) above, then each Lender
hereby agrees that it shall forthwith purchase a Participation in such Letter
of Credit Advance (as of the LC Payment Date) from the Issuing Bank in
accordance with the requirements set out in Section 2.03(d)(iii) but
adjusted for any payments received from the applicable Co-Borrower on or after
such date and prior to such purchase.

 

(iv)          Interest
on the amount paid or disbursed by the Issuing Bank, to the extent not
reimbursed to the Issuing Bank prior to 12:00 Noon (New York City time) on the
date of such payment or disbursement, shall accrue from and including the date
paid or disbursed to but excluding the date such Issuing Bank is reimbursed by
the Co-Borrowers or by the Administrative Agent therefor pursuant to clause (i)
or (ii) above, at a rate per annum equal to the Base Rate as in effect from time
to time plus the Applicable Margin as in effect from time to time for Base Rate
Advances and shall be payable by the Co-Borrowers on demand.  Each Issuing Bank shall give the Funds
Administrator prompt written notice of each Letter of Credit Disbursement (as
defined below) under any Letter of Credit issued by it, provided that the
failure to give any such notice shall in no way affect, impair or diminish the
Co-Borrowers’ obligations hereunder.

 

(v)           The
obligations of the Co-Borrowers under this Section 2.03(e) to reimburse
each Issuing Bank with respect to drafts, demands and other presentations for
payment under Letters of Credit issued by them (each, a “Letter of Credit
Disbursement”) (including, in each case, interest thereon) shall be
absolute and unconditional under any and all circumstances and irrespective of
any setoff, counterclaim or defense to payment that any Co-Borrower or any
Subsidiary of any Co-Borrower may have or have had against any Lender
(including in its capacity as an Issuing Bank or as a Participant), including,
without limitation, any defense based upon the failure of any drawing under a
Letter of Credit to conform to the terms of the Letter of Credit or any
non-application or mis-application by the beneficiary of the proceeds of such
Letter of Credit Disbursement; provided, however, that the
Co-Borrowers shall not be obligated to reimburse any Issuing Bank for any
wrongful payment made by such Issuing Bank under a Letter of Credit issued by
it as a result of acts or omissions constituting willful misconduct or gross
negligence on the part of such Issuing Bank (as determined by a court of
competent jurisdiction in a final and non-appealable decision).

 

(f)            Cash Collateralization.  If cash collateralization of any Letter of
Credit is required pursuant to Section 2.06(b), then the applicable
Co-Borrower will cash collateralize such Letter of Credit in the amount
required pursuant to Section 2.06(b).  If
any Letter of Credit remains outstanding on the Termination Date or an Event of
Default has occurred and is 

 

65

 

continuing, and arrangements satisfactory to the
Administrative Agent and the applicable Issuing Banks have not been made for a “backstop
letter of credit” facility, then the Funds Administrator shall, at each Issuing
Bank’s or the Administrative Agent’s request, on the next Business Day cause
the applicable Co-Borrower to cash collateralize the Available LC Amount of all
outstanding Letters of Credit by depositing in the Cash Collateral Account an
amount in cash equal to 105% of the Available LC Amount as of such date plus
any accrued and unpaid interest thereon; provided that the obligation to
deposit such cash collateral shall become effective immediately, and such
deposit shall become immediately due and payable, without demand or other
notice of any kind, if any Letters of Credit remain outstanding and undrawn on
the Termination Date and a “backstop letter of credit” reasonably acceptable to
each Issuing Bank shall not have been provided as collateral for such Letters
of Credit.  Such deposit shall be held by
the Security Agent as collateral for the payment and performance of the
Obligations of the Co-Borrowers under this Agreement.  The Security Agent shall have exclusive dominion
and control, including the exclusive right of withdrawal, over such Cash
Collateral Account.  Any funds standing
to the credit of such Cash Collateral Account shall be applied by the Security
Agent to reimburse the relevant Issuing Bank for Letter of Credit Disbursements
for which it has not been reimbursed and, to the extent not so applied, shall
be held for the satisfaction of the reimbursement obligations of the
Co-Borrowers for the Available LC Amount at such time. If the Co-Borrowers fail
to provide any cash collateral as required hereunder, the Lenders may (and
shall upon direction of the Administrative Agent) advance, as Revolving
Advances, the amount of the cash collateral required (whether or not the
Termination Date shall have occurred or the conditions in Article III are not
are satisfied).

 

Section
2.04  Mandatory Repayment of Advances.

 

(a)           Revolving Advances. 
Each Co-Borrower shall repay to the Administrative Agent for the ratable
account of the Lenders on the Termination Date the aggregate outstanding
principal amount of the Revolving Advances then outstanding.

 

(b)           Swingline Advances. 
Each Co-Borrower shall repay to the Administrative Agent for the account
of the Swingline Bank the outstanding principal amount of each Swingline Advance
made by it on the earlier of the maturity date specified in the applicable
Notice of Swingline Borrowing and the Termination Date.

 

Section
2.05  Termination or Reduction of
Commitments.

 

(a)           Optional. 
The Funds Administrator may, upon at least three Business Days’ notice
to the Administrative Agent, terminate in whole or reduce in part the Unused
Commitments; provided, however, that each partial reduction of
the Commitments (i) shall be in an aggregate amount of $1,000,000 or an
integral multiple of $500,000 in excess thereof and (ii) shall be made ratably
among the Lenders in accordance with their Commitments.

 

(b)           Mandatory. 
This Agreement (and the Commitment of each Lender) shall terminate in
its entirety on the Termination Date.

 

66

 

Section
2.06  Prepayments.

 

(a)           Optional. 
The Funds Administrator may, on one (1) Business Day’s notice in the
case of Base Rate Advances and three Business Day’s notice in the case of LIBOR
Advances, in each case to the Administrative Agent stating the proposed date
and aggregate principal amount of the prepayment, and if such notice is given
the applicable Co-Borrower shall, prepay the outstanding aggregate principal
amount of the Advances comprising part of the same Borrowing in whole or
ratably in part, together with accrued interest to the date of such prepayment
on the aggregate principal amount prepaid; provided, however,
that (i) each partial prepayment shall be in an aggregate principal amount of
$1,000,000 or an integral multiple of $500,000 in excess thereof, (ii) if any
prepayment of a LIBOR Advance is made on a date other than the last day of an
Interest Period for such Advance, the Borrower shall also pay any amounts owing
pursuant to Section 11.04(c) and (iii) if any prepayment is to be made
in connection with the closing of one or more transactions, such prepayment may
be conditioned on the closing of such transaction or transactions.

 

(b)           Mandatory. 
(i) On any day on which (A) (w) until, and only until, the Minimum
Excess Availability Condition is satisfied, the Aggregate Exposure at such time
exceeds the Adjusted Total Commitment, and/or (x) the Aggregate Exposure at
such time exceeds the Total Commitment at such time, and/or (y) the aggregate
Swingline Advances outstanding at such time exceeds the Swingline Sub-Limit
and/or (z) the aggregate Letter of Credit Outstandings at such time exceeds the
Letter of Credit Sub-Limit or (B) the Aggregate Exposure exceeds 100% of the
Borrowing Base at such time (or during an Agent Advance Period, 105%), the
Borrower shall repay the Advances in an amount equal to or greater than such
excess (and if the amount of such excess is greater than the then aggregate
outstanding principal amount of the Advances and the Letter of Credit
Outstandings, the Borrower shall cash collateralize outstanding Letters of
Credit in accordance with Section 2.03(f) to the extent necessary)
so that the Aggregate Exposure at such time no longer exceeds, until the
Minimum Excess Availability Condition is satisfied, the Adjusted Total
Commitment at such time, and thereafter, the Total Commitment at such time, the
aggregate Swingline Advances outstanding at such time no longer exceed the
Swingline Sub-Limit, the aggregate Letter of Credit Outstandings at such time
no longer exceed the Letter of Credit Sub-Limit or the Aggregate Exposure no
longer exceeds 100% of the Borrowing Base (or during an Agent Advance Period,
105%), as the case may be.

 

(ii)           Prepayments
made pursuant to clause (i) of this Section 2.06(b), and the
application of all collected amounts held in the Core Concentration Account
during any Dominion Period shall be applied, first, to prepay Swingline
Advances then outstanding until such Swingline Advances are paid in full, second,
to prepay Letter of Credit Advances then outstanding until such Letter of
Credit Advances are paid in full, third, ratably to prepay Revolving
Advances then outstanding comprising part of the same Borrowings until all
Revolving Advances are paid in full, fourth, to the Cash Collateral
Account until the Available LC Amount of all outstanding Letters of Credit is
cash collateralized to the extent required pursuant to Section 2.03(f),
and, fifth, unless an Event of Default is continuing, to the Funds
Administrator for use by the Co-Borrowers in accordance with Section 2.14.

 

(iii)          All
prepayments under this subsection (b) shall be made together with accrued
interest to the date of such prepayment on the principal amount prepaid.

 

67

 

(iv)          Notwithstanding
any of the other provisions of this Section 2.06(b), so long as no
Default under Section 9.01 or Event of Default shall have occurred and
be continuing, if any prepayment of LIBOR Advances is required to be made under
this Section 2.06(b) other than on the last day of the Interest Period
therefor, the Funds Administrator may, in its sole discretion, deposit the
amount of any such prepayment otherwise required to be made hereunder into a
Cash Collateral Account until the last day of such Interest Period, at which
time the Administrative Agent shall be authorized (without any further action
by or notice to or from the Funds Administrator) to apply such amount to the
prepayment of such Advances in accordance with this Section 2.06(b).

 

Section
2.07  Interest.

 

(a)           Scheduled Interest. 
The Co-Borrowers shall pay interest on the unpaid principal amount of
each Advance owing by it to each Lender from the date of such Advance until
such principal amount shall be paid in full, at the following rates per annum:

 

(i)            Base
Rate Advances.  During such periods
as such Advance is a Base Rate Advance, a rate per annum equal at all times to
the sum of (A) the Base Rate in effect from time to time plus (B) the
Applicable Margin in effect from time to time, payable (x) in arrears on
the first Business Day of each calendar quarter during such periods for the
interest accrued through the last day of the previous calendar quarter and (y)
at maturity (whether by acceleration or otherwise) and, after such maturity, on
demand, subject, however, to the provisions of subsection (b) of this Section
2.07.

 

(ii)           LIBOR
Advances.  During such periods as
such Advance is a LIBOR Advance, a rate per annum equal at all times during
each Interest Period for such Advance to the sum of (A) LIBOR for such Interest
Period for such Advance plus (B) the Applicable Margin in effect on the first
day of such Interest Period, payable in arrears on the last day of such
Interest Period and, if such Interest Period has a duration of more than three
months, on each day that occurs during such interest period every three months
from the first day of such Interest Period and on the date such LIBOR Advance
shall be Converted, subject, however, to the provisions of subsection (b) of this
Section 2.07.

 

(b)           Default Interest. 
At the election of the Majority Lenders, upon the occurrence and
continuation of an Event of Default, to the extent permitted by law, principal
and interest in respect of each Advance and any other amount payable hereunder
and under any other Loan Document shall, in each case, bear interest at a rate
per annum equal to the greater of (x) in the case of principal and interest in
respect of an Advance, the rate which is 2% in excess of the rate then borne by
such Advances or Letters of Credit and (y) in all other cases, the rate which
is 2% in excess of the rate otherwise applicable to Base Rate Advances from
time to time.  Interest that accrues
under this Section 2.07(b) shall be payable on demand.

 

(c)           Notice of Interest Rate.  Promptly after receipt of a Notice of
Revolving Borrowing pursuant to Section 2.02(a), the Administrative
Agent shall give notice to the Funds Administrator and each Lender to which
such Notice of Revolving Borrowing of the applicable 

 

68

 

interest rate determined by the Administrative Agent
for purposes of clause (a)(i) or (ii) of this Section 2.02.

 

(d)           Interest Rate Determination.  Upon each Interest Determination Date, the
Administrative Agent shall determine LIBOR for each Interest Period applicable
to the respective LIBOR Advances and shall promptly notify the Funds
Administrator and the Lenders thereof. 
Each such determination shall, absent manifest error, be final and
conclusive and binding on all parties hereto. 
If on any Interest Determination Date, the Administrative Agent
determines that, by reason of any changes arising after the date of this
Agreement affecting the interbank eurodollar market, adequate and fair means do
not exist for ascertaining the applicable interest rate on the basis provided
for in the definition of LIBOR, the Administrative Agent shall forthwith notify
the Funds Administrator and the Lenders that the interest rate cannot be
determined for such LIBOR Advances and (i) each such LIBOR Advance will
automatically, on the last day of the then existing Interest Period therefor,
convert into a Base Rate Advance (or if such Advance is then a Base Rate
Advance, will continue as a Base Rate Advance), and (ii) the obligation of the
Lenders to make, or to Convert Advances into, LIBOR Advances shall be suspended
until the Administrative Agent shall notify the Funds Administrator and the
Lenders that the circumstances causing such suspension no longer exist.

 

Section
2.08  Fees.

 

(a)           Commitment Fee. 
The Co-Borrowers shall pay to the Administrative Agent for the account
of each Lender having a Commitment a commitment fee, from the date hereof in
the case of each Initial Lender and from the Closing Date specified in the
Assignment and Acceptance pursuant to which it became a Lender in the case of
each other Lender until the Termination Date, payable in arrears on the first
Business Day of each calendar quarter for the fees accrued through the last day
of the previous calendar quarter and on the Termination Date, at the rate per
annum equal to the Applicable Percentage on the sum of the daily Unused
Commitment plus in respect of each Lender, other than the Swingline
Bank, its Pro Rata Share of the daily outstanding Swingline Advances during
such month; provided, however, that no commitment fee shall
accrue on any of the Commitments of a Defaulting Lender so long as such Lender
shall be a Defaulting Lender.

 

(b)           Letter of Credit Fees, Etc.  (i) The Co-Borrowers shall pay to the
Administrative Agent for the account of each Lender a commission, payable in
arrears on the first Business Day of each calendar quarter for the fees accrued
through the last day of the previous calendar quarter and on the Termination
Date, on such Lender’s Pro Rata Share of the daily aggregate Available LC
Amount of all Letters of Credit outstanding from time to time at a rate per
annum equal to the Applicable Margin for LIBOR Advances under this Agreement
then in effect.

 

(ii)           The
Co-Borrowers shall pay to each Issuing Bank, for its own account, (A) a
fronting fee, payable in arrears on the first Business Day of each calendar
quarter for the fees accrued through the last day of the previous calendar
quarter and on the Termination Date, on the daily aggregate Available LC Amount
of all Letters of Credit outstanding from time to time issued by it at the rate
of 0.25% per annum and (B) such other reasonable and customary commissions,
transfer fees and other fees and charges in 

 

69

 

connection with the issuance or administration of each Letter of Credit
as the Funds Administrator and such Issuing Bank shall agree.

 

(c)           Administrative Agent’s Fees.  The Co-Borrowers shall pay to the
Administrative Agent for its own account such fees as may from time to time be
agreed between the Funds Administrator and the Administrative Agent in the
amounts and at the times so specified. 
Such fees shall be fully earned when paid and shall not be refundable
for any reason whatsoever (except as expressly agreed between the Funds
Administrator and the Administrative Agent).

 

(d)           Other Fees. 
The Co-Borrowers shall pay to the Administrative Agent for the account
of the Lead Arrangers and the Initial Lenders entitled thereto, respectively,
such fees as may from time to time be agreed between the Funds Administrator
and the Lead Arrangers and the Initial Lenders in the amounts and at the times
so specified.  Such fees shall be fully
earned when paid and shall not be refundable for any reason whatsoever (except
as expressly agreed between the Funds Administrator and the Administrative
Agent).

 

Section
2.09  Conversion of Advances.  (a)  Optional.  The Funds Administrator may on any Business
Day, upon notice given to the Administrative Agent not later than 12:00 P.M.
(New York City time) on the third (3rd) Business Day prior to the date of the
proposed Conversion and subject to the provisions of Sections 2.07 and 2.10,
Convert all or any portion of the Advances of one Type owed by it comprising
the same Borrowing into Advances of the other Type (other than Swingline
Advances which may not be Converted pursuant to this Section 2.09); provided,
however, that (i) any Conversion of LIBOR Advances into Base Rate
Advances shall be made only on the last day of an Interest Period for such
LIBOR Advances, (ii) any Conversion of Base Rate Advances into LIBOR Advances
shall be in an amount not less than the minimum amount specified in Section
2.02(d), (iii) no Conversion of any Advances shall result in more separate
Borrowings than permitted under Section 2.02(d) and (iv) each Conversion
of Advances comprising part of the same Borrowing shall be made ratably among
the Lenders in accordance with their Commitments.  Each such notice of Conversion shall, within
the restrictions specified above, specify (i) the date of such Conversion, (ii)
the Advances to be Converted and (iii) if such Conversion is into LIBOR
Advances, the duration of the initial Interest Period for such Advances.  Each notice of Conversion shall be irrevocable
and binding on the applicable Co-Borrower.

 

(b)           Mandatory. 
(i) On the date on which the aggregate unpaid principal amount of LIBOR
Advances comprising any Borrowing shall be reduced, by payment or prepayment or
otherwise, to less than $1,000,000, such LIBOR Advances shall automatically
Convert into Base Rate Advances.

 

(ii)           Upon
the occurrence and during the continuance of any Default under Section 9.01,
(x) each LIBOR Advance will automatically, on the last day of the then existing
Interest Period therefor, Convert into a Base Rate Advance and (y) the
obligation of the Lenders to make, or to Convert Advances into, LIBOR Advances
shall be suspended.

 

70

 

(iii)          If
the Funds Administrator shall fail to select the duration of any Interest
Period for any LIBOR Advances in accordance with the provisions contained in
the definition of “Interest Period” in Section 1.01, the
Administrative Agent will forthwith so notify the Funds Administrator and the
Lenders, whereupon each such LIBOR Advance will automatically, on the last day
of the then existing Interest Period therefor, Convert into a Base Rate
Advance.

 

Section
2.10  Increased Costs, Etc.  (a)  In
the event that, due to either (i) the introduction of or any change (other than
any change by way of imposition or increase of reserve requirements included in
the LIBOR Reserve Percentage) in or in the interpretation or administration of
any applicable law or regulation after the Closing Date, (ii) the compliance
with any applicable guideline or request from the NAIC or any central bank or
other Governmental Authority (whether or not having the force of law) or (iii)
any other circumstance affecting the interbank Eurodollar market or the
position of any Lender Party in such market which leads such Lender Party to
reasonably determine that LIBOR for any Interest Period for any LIBOR Advance
made by such Lender Party will not adequately reflect the cost to such Lender
Party of making, funding or maintaining such LIBOR Advance for such Interest
Period, there shall be any increase in the cost to or reduction in the amount
received or receivable by any Lender Party as a result of agreeing to make or
of making, funding or maintaining LIBOR Advances or of agreeing to issue or of
issuing or maintaining Letters of Credit or of agreeing to make or of making or
maintaining Letter of Credit Advances (excluding for purposes of this Section
2.10 any such increased costs resulting from taxes as to which Section
2.12 shall govern), then the Co-Borrowers shall from time to time, upon
demand by such Lender Party (with a copy of such demand to the Administrative
Agent), pay to the Administrative Agent for the account of such Lender Party
additional amounts (in the form of an increased rate of, or a different method
of calculating, interest or otherwise as such Lender Party, in its reasonable
discretion, shall determine) sufficient to compensate such Lender Party for
such increased cost; provided, however, that a Lender Party
claiming additional amounts under this Section 2.10(a) agrees to use
reasonable efforts (consistent with its internal policy and legal and
regulatory restrictions) to designate a different Lending Office for any
Advances affected by such event if the making of such a designation would avoid
the need for, or reduce the amount of, such increased cost that may thereafter
accrue; provided that such designation is made on terms that such Lender Party
and its Lending Office suffer no economic, legal or regulatory disadvantage,
with the object of avoiding the consequence of the event giving rise to the
operation of this subsection (a).  A
certificate as to the amount of such increased cost and showing in reasonable
detail the basis for the calculation thereof, submitted to the Funds
Administrator by such Lender Party at the time of demand, shall be conclusive
and binding for all purposes, absent manifest error.

 

(b)           If, due to either (i) the introduction of or any change in
or in the interpretation or administration of any applicable law or regulation
after the Closing Date or (ii) the compliance with any applicable guideline or
request from any central bank or other governmental authority (whether or not
having the force of law), there shall be any increase in the amount of capital
required or expected to be maintained by any Lender Party or any corporation
controlling such Lender Party which has or would have the effect of reducing
the rate of return on such Lender Party’s capital or assets as a result of or
based upon the existence of such Lender Party’s commitments and obligations
under this Agreement to a level below that 

 

71

 

which such Lender Party could have achieved but for
such change or compliance (taking into consideration such Lender Party’s or any
corporation controlling such Lender Party’s policies with respect to capital
adequacy), then, upon demand by such Lender Party (with a copy of such demand
to the Administrative Agent), the applicable Co-Borrowers shall pay to the
Administrative Agent for the account of such Lender Party, from time to time as
specified by such Lender Party, additional amounts sufficient to compensate
such Lender Party in the light of such circumstances, it being understood and
agreed that a Lender Party shall not be entitled to such compensation as a
result of such Lender Party’s compliance with, or pursuant to any request or
directive to comply with, any such law, regulation, guideline or request in
effect on the Closing Date.  Any amount
payable pursuant to this Section 2.10(b) shall be payable only to the
extent that such Lender Party reasonably determines such increase in capital to
be allocable to the existence of such Lender Party’s commitment to lend or to
issue Letters of Credit hereunder or to the issuance or maintenance of any
Letters of Credit.  A certificate as to
such amounts and showing in reasonable detail the basis for the calculation
thereof submitted to the Funds Administrator by such Lender Party at the time
of demand shall be conclusive and binding for all purposes, absent manifest
error.

 

(c)           Notwithstanding any other provision of this Agreement, if
the introduction of or any change in or in the interpretation of any law or
regulation shall make it unlawful, or any central bank or other governmental
authority shall assert that it is unlawful, for any Lender or its Lending
Office to perform its obligations hereunder to make LIBOR Advances or to
continue to fund or maintain LIBOR Advances hereunder, with respect to any
LIBOR Advance affected by circumstances described in this subsection (c), the
Funds Administrator will, and with respect to any LIBOR Advance affected by
circumstances described in subsections (a) or (b) above, the Funds
Administrator may, either (i) on the last day of the then existing Interest
Period therefor, convert each LIBOR Advance affected by such circumstances into
a Base Rate Advance or (ii) if the affected LIBOR Advance is then being made
pursuant to a Borrowing, cancel such Borrowing by giving the Administrative
Agent telephonic notice (confirmed promptly in writing) thereof on the same
date that the Funds Administrator was notified by a Lender Party pursuant to
subsection (a) or (b) above or this subsection (c) (as applicable); provided
that if more than one Lender Party is affected at any time, then all affected
Lender Parties must be treated in the same manner pursuant to this Section
2.10(c).  In the event of an
illegality as described in this subsection (c) the obligation of the Lenders to
make, or to Convert Advances into, LIBOR Advances shall be suspended until the
Administrative Agent shall notify the Funds Administrator that such Lender has
determined that the circumstances causing such suspension no longer exist; provided,
however, that, before making any such demand, such Lender Party agrees
to use reasonable efforts (consistent with its internal policy and legal and
regulatory restrictions) to designate a different Lending Office for any
Advances affected by such event if the making of such a designation would allow
such Lender Party or its Lending Office to continue to perform its obligations
to make LIBOR Advances or to continue to fund or maintain LIBOR Advances; provided
that such designation is made on terms that such Lender Party and its Lending
Office suffer no economic, legal or regulatory disadvantage, with the object of
avoiding the consequence of the event giving rise to the operation of this
subsection.

 

(d)           Anything in this Agreement to the contrary
notwithstanding, to the extent any notice under Section 2.10, Section
2.12 or Section 11.04(c) is given by any Lender Party more than 180
days after such Lender Party has knowledge (or should have had knowledge) of 

 

72

 

the occurrence of the event giving rise to the
additional cost, reduction in amounts, loss, tax or other additional amounts
described in such Section 2.10, Section 2.12 or Section
11.04(c), as the case may be, such Lender Party shall not be entitled to
compensation under such Section for any such amounts incurred or accruing prior
to the giving of such notice to the Funds Administrator.

 

Section
2.11  Payments and Computations.  (a) 
Each Co- Borrower shall make each payment owed by it hereunder and under
the Notes, irrespective of any right of counterclaim or set-off (except as
otherwise provided in Section 2.15), not later than 12:00 P.M. (New York
City time) on the day when due in U.S. Dollars to the Administrative Agent at
the Administrative Agent’s Account in same day funds.  The Administrative Agent will promptly
thereafter cause like funds to be distributed (i) if such payment by such
Co-Borrower is in respect of principal, interest, commitment fees or any other
Obligation then payable hereunder and under the Notes to more than one Lender
Party, to such Lender Parties for the account of their respective Lending
Offices ratably in accordance with the amounts of such respective Obligations
then payable to such Lender Parties and (ii) if such payment by such
Co-Borrower is in respect of any Obligation then payable hereunder to one
Lender Party, to such Lender Party for the account of its Lending Office, in
each case to be applied in accordance with the terms of this Agreement.  Upon its acceptance of an Assignment and
Acceptance and recording of the information contained therein in the Register
pursuant to Section 11.07(d), from and after the effective date of such
Assignment and Acceptance, the Administrative Agent shall make all payments
hereunder and under the Notes in respect of the interest assigned thereby to
the Lender Party assignee thereunder, and the parties to such Assignment and
Acceptance shall make all appropriate adjustments in such payments for periods
prior to such effective date directly between themselves.

 

(b)           If the Administrative Agent or the Security Agent receives
funds for application to the Obligations under the Loan Documents under
circumstances for which the Loan Documents do not specify the Advances to
which, or the manner in which, such funds are to be applied, the Administrative
Agent or the Security Agent may, but shall not be obligated to, elect to
distribute such funds to each Lender Party ratably in accordance with such
Lender Party’s proportionate share of the principal amount of all outstanding
Advances and all Letter of Credit Outstandings, in repayment or prepayment of
such of the outstanding Advances or other Obligations owed to such Lender Party
as the Administrative Agent or the Security Agent shall direct.

 

(c)           Each Co-Borrower hereby authorizes each Lender Party, if
and to the extent payment owed to such Lender Party is not made when due
hereunder or, in the case of a Lender, under the Note held by such Lender, to
charge from time to time against any or all of such Co-Borrower’s accounts with
such Lender Party any amount so due.

 

(d)           All computations of interest, fees and commissions shall
be made by the Administrative Agent on the basis of a year of 360 days, in each
case for the actual number of days (including the first day but excluding the
last day) occurring in the period for which such interest, fees or commissions
are payable; provided that (i) interest in respect of which the rate of
interest is calculated on the basis of clause (a) of the definition of “Base
Rate” contained in Section 1.01, (ii) commitment fees payable pursuant
to Section 2.08(a) and (iii) Letter of Credit fees payable pursuant to Section
2.08(b) shall be calculated on the basis of a year of 365 (or 366, 

 

73

 

as the case may be) days for the actual number of
days elapsed.  Each determination by the
Administrative Agent of an interest rate, fee or commission hereunder shall be
conclusive and binding for all purposes, absent manifest error.

 

(e)           Whenever any payment hereunder or under the Notes shall be
stated to be due on a day other than a Business Day, such payment shall be made
on the next succeeding Business Day, and such extension of time shall in such
case be included in the computation of payment of interest or commitment fee,
as the case may be; provided, however, that, if such extension
would cause payment of interest on or principal of LIBOR Advances to be made in
the next following calendar month, such payment shall be made on the next
preceding Business Day.

 

(f)            Unless the Administrative Agent shall have received
notice from the Funds Administrator prior to the date on which any payment is
due to any Lender Party hereunder that a Co-Borrower will not make such payment
in full, the Administrative Agent may assume that such Co-Borrower has made
such payment in full to the Administrative Agent on such date and the
Administrative Agent may, in reliance upon such assumption, cause to be
distributed to each such Lender Party on such due date an amount equal to the
amount then due to such Lender Party.  If
and to the extent that any Co-Borrower shall not have so made such payment in
full to the Administrative Agent, each such Lender Party shall repay to the
Administrative Agent forthwith on demand such amount distributed to such Lender
Party together with interest thereon, for each day from the date such amount is
distributed to such Lender Party until the date such Lender Party repays such
amount to the Administrative Agent, at the Federal Funds Rate.

 

Section
2.12  Taxes.  (a)  Any and all payments by the Co-Borrowers
hereunder or under the Notes shall be made in accordance with Section 2.11,
free and clear of and without deduction for any and all present or future
taxes, levies, imposts, deductions, charges or withholdings, and all
liabilities with respect thereto, excluding (i) in the case of each
Lender Party and the Administrative Agent, (A) taxes that are imposed on its
net income, or net profits (and, in each case, franchise taxes imposed in lieu
thereof) and branch profits or similar taxes imposed by the United States or by
the state, province or other jurisdiction (or in each case, any political
subdivision thereof) under the laws of which such Lender Party or the
Administrative Agent (as the case may be) is organized or in which the
Administrative Agent or such Lender Party maintains its principal office or is
otherwise doing business, (B) other than in the case of an assignee pursuant to
a request by the Borrower under Section 11.08, any withholding tax that
is imposed on any payment by the Borrower hereunder or under the Notes to the
Administrative Agent or any Lender Party pursuant to any law in effect at the
time the Administrative Agent or such Lender Party becomes a party to this
Agreement (or designates a new Lending Office), except to the extent that the
Administrative Agent or such Lender Party (or its assignor, if any) was
entitled, at the time of designation of a new applicable Lending Office (or
assignment) to receive additional amounts with respect to such withholding tax
pursuant to this Section 2.12(a), (C) any United States federal
withholding tax that would not have been imposed but for a failure by such
recipient (or any financial institution through which any payment is made to
such recipient) to comply with the applicable requirements of FATCA. or (D) any
withholding tax (including backup withholding tax) that is attributable to such
Person’s failure to comply with Section 2.12(e) (unless such failure is
as a result of a change in law after the date such Person becomes a party to
this Agreement) and (ii) in the case of each Lender Party, taxes that are

 

74

 

imposed on its overall net
income or net profits (and in each case, franchise taxes imposed in lieu
thereof) by the state, province or other jurisdiction of such Lender Party’s
Lending Office (other than a Lending Office that became a Lending Office pursuant
to Section 2.12(h)) or any political subdivision thereof (all such
non excluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities in respect of payments hereunder or under the Notes being
hereinafter referred to as “Taxes”) unless the Co-Borrowers are required
by law or the interpretation or administration thereof to withhold or deduct
Taxes.  If the Co-Borrowers shall be
required by law or the interpretation or administration thereof by the relevant
taxing authority to deduct any Taxes from or in respect of any sum payable
hereunder or under any Note to any Lender Party or the Administrative Agent, (x) the
sum payable shall be increased as may be necessary so that after making all
required deductions (including deductions applicable to additional sums payable
under this Section 2.12) such Lender Party or the Administrative
Agent (as the case may be) receives an amount equal to the sum it would have
received had no such deductions been made, (y) the Co-Borrowers shall make
such deductions and (z) the Co-Borrowers shall pay the full amount
deducted to the relevant taxing or other authority in accordance with
applicable law.

 

(b)                                 In addition, the Co-Borrowers shall pay any present or future stamp,
documentary, excise, property or similar taxes, charges or levies that arise
from any payment made by any of them hereunder or under the Notes or from the
execution, delivery or registration of, performing under, or otherwise with
respect to, this Agreement or the Notes (hereinafter referred to as “Other
Taxes”).

 

(c)                                  The Co-Borrowers shall indemnify each Lender Party and the Administrative
Agent for and hold it harmless against the full amount of Taxes and Other
Taxes, and for the full amount of taxes of any kind imposed by any jurisdiction
on amounts payable under this Section 2.12, imposed on or paid by
such Lender Party or the Administrative Agent (as the case may be), and any
liability (including penalties, additions to tax, interest and expenses)
arising therefrom or with respect thereto that would not have arisen but for
the Co-Borrowers’ failure to pay any Taxes or Other Taxes when due to the
appropriate taxing authority .  This
indemnification shall be made within thirty (30) days from the date the
Borrower received from such Lender Party or the Administrative Agent (as the
case may be) a written demand setting forth in reasonable detail the basis for
such indemnification therefore.

 

(d)                                 Promptly after the date of any payment of Taxes, the Funds Administrator
shall furnish to the Administrative Agent, at its address referred to in Section 11.02,
the original or a certified copy of a receipt evidencing such payment or such
other evidence of payment that is reasonably satisfactory to the Administrative
Agent.

 

(e)                                  On or prior to the date of its execution and delivery of this Agreement
in the case of each Initial Lender or Initial Issuing Bank, as the case may be,
and on the date on which it becomes a Lender Party in the case of each other
Lender Party, and from time to time thereafter as requested in writing by the
Funds Administrator (but only so long thereafter as such Lender Party remains
lawfully able to do so), (I) each Lender Party organized under the laws of
a jurisdiction outside the United States shall provide each of the Administrative
Agent and the Funds Administrator with (A) two original properly completed
and duly executed Internal Revenue Service Forms W-8BEN or W-8ECI, or successor
form, or in the case of a Lender Party

 

75

 

that has certified in
writing to the Administrative Agent that it is not (i) a “bank” (as
defined in Section 881(c)(3)(A) of the Internal Revenue Code), (ii) a
10-percent shareholder (within the meaning of Section 871(h)(3)(B) of
the Internal Revenue Code) of any Co-Borrower or (iii) a controlled
foreign corporation related to any Co-Borrower (within the meaning of Section 864(d)(4) of
the Internal Revenue Code) (a “non-bank certification”), Internal Revenue
Service Form W-8BEN, or successor form, as appropriate or other form
prescribed by the Internal Revenue Service, certifying that such Lender Party
is exempt from or entitled to a reduced rate of United States withholding tax
on payments pursuant to this Agreement or the Notes or, in the case of a Lender
Party that has provided the non-bank certification, certifying that such Lender
Party is a foreign corporation, partnership, estate or trust and (B) will
use reasonable efforts (subject to the overall good faith policy considerations
of such Lender Party) to provide any other form prescribed by applicable law as
a basis for claiming exemption from or a reduction in United States withholding
tax duly completed together with such supplementary documentation as may be
prescribed by applicable law to permit the applicable Co-Borrower to determine
the withholding or deduction required to be made and (II) the
Administrative Agent and each Lender Party that is a “United States person”
(within the meaning of Section 7701(a)(30) of the Internal Revenue Code)
and is not an exempt recipient based on the indicators described by Treasury
Regulation Section 1.6049-4(c)(1)(ii), shall deliver to the Co-Borrowers
and the Administrative Agent two duly completed copies of United States
Internal Revenue Service Form W-9, or successor form.  Each such Lender Party hereby agrees, from
time to time after the initial delivery by such Lender Party of such forms or
certificates, whenever a lapse in time or change in circumstances renders such
forms or certificates obsolete or inaccurate in any material respect, that such
Lender Party shall promptly (i) deliver to the Funds Administrator and the
Administrative Agent two new original copies of Internal Revenue Service Forms
W-9, W-8BEN (together with a non-bank certificate, if applicable) or W-8ECI, as
appropriate, properly completed and duly executed by such Lender Party or (ii) notify
the Administrative Agent and the Funds Administrator of its inability to
deliver any such forms or certificates.

 

(f)                                    Notwithstanding any other provision of Section 2.12(e) or
this Section 2.12(f), a Lender shall not be required to deliver any
form that such Lender is not legally able to deliver.  In addition, if a payment made to a Lender
hereunder would be subject to U.S. federal withholding tax imposed by FATCA if
such Lender fails to comply with the reporting requirements of FATCA, such
Lender shall deliver to the Administrative Agent and Co-Borrowers such forms,
documentation, or other information as shall be prescribed by the Internal
Revenue Service to demonstrate that such Lender has complied with such
applicable reporting requirements.

 

(g)                                 If a Lender Party becomes subject to Taxes because of its failure to
deliver a form, certificate or other document required under Sections 2.12(e) and
(f), the Funds Administrator shall take such steps as such Lender Party
shall reasonably request to assist such Lender Party to recover such Taxes.

 

(h)                                 Any Lender Party claiming any additional amounts payable pursuant to this
Section 2.12 agrees to use reasonable efforts (consistent with its
internal policy and legal and regulatory restrictions) to change the
jurisdiction of its Lending Office or designate a different Lending Office if
the making of such a change or designation would eliminate, or reduce the
amount of, any such additional amounts that may thereafter accrue; provided
that such change or

 

76

 

designation is made on terms that such Lender
Party and its Lending Office suffer no economic, legal or regulatory disadvantage,
with the object of avoiding the consequence of the event giving rise to the
operation of subsection (a) or (c) above; provided  further
that nothing in this subsection (h) shall affect or postpone any of the
obligations of any Co-Borrower or the rights of any Lender Party pursuant to
this Section 2.12.

 

(i)                                     If any Lender Party or the Administrative Agent, as applicable, receives
a refund of a tax for which a payment has been made by any Co-Borrower pursuant
to this Section, then the Lender Party or the Administrative Agent, as the case
may be, shall remit such refund to the relevant Co-Borrower, net of all
out-of-pocket expenses of the Lender Party or the Administrative Agent, as the
case may be, and without interest (other than any interest paid by the relevant
taxing authority with respect to such refund). 
If a Lender Party or the Administrative Agent is required to return all
or a portion of any refund for which reimbursement was made under the preceding
sentence to the taxing authority that granted such refund, the Funds
Administrator shall pay over, or cause to be paid over by the applicable
Co-Borrower, to such Lender Party or the Administrative Agent, as the case may
be, such refund or portion of a refund, as applicable, plus any penalties, interest
or other charges imposed by the relevant taxing authority, to such Lender Party
or the Administrative Agent, as applicable. 
Notwithstanding any provision in this Agreement or any other Loan
Document, nothing in this Agreement or any other Loan Document shall interfere
with the right of a Lender or the Administrative Agent to arrange its tax
affairs in whatever manner it thinks fit nor oblige any Lender or the
Administrative Agent to disclose any information relating to its tax affairs or
any computations in respect thereof or require any Lender or the Administrative
Agent to do anything that would prejudice its ability to benefit from any other
reliefs, remissions or repayments to which it may be entitled.

 

Section 2.13 
Sharing of Payments, Etc.  Subject to the priority of payments
specifically set forth herein or in any other Loan Document and subject to the
provisions of Sections 2.15 and 11.07(g)(vi) hereof, if any
Lender Party shall obtain at any time any payment (whether voluntary,
involuntary, through the exercise of any right of set off, or otherwise) (a) on
account of Obligations due and payable to such Lender Party hereunder and under
the Loan Documents at such time in excess of its ratable share (according to
the proportion of (i) the amount of such Obligations due and payable to
such Lender Party at such time to (ii) the aggregate amount of the
Obligations due and payable to all Lender Parties hereunder and under the Loan
Documents at such time) of payments on account of the Obligations due and
payable to all Lender Parties hereunder and under the Loan Documents at such
time obtained by all the Lender Parties at such time or (b) on account of
Obligations owing (but not due and payable) to such Lender Party hereunder and
under the Loan Documents at such time in excess of its ratable share (according
to the proportion of (i) the amount of such Obligations owing to such
Lender Party at such time to (ii) the aggregate amount of the Obligations
owing (but not due and payable) to all Lender Parties hereunder and under the
Loan Documents at such time) of payments on account of the Obligations owing
(but not due and payable) to all Lender Parties hereunder and under the Loan
Documents at such time obtained by all of the Lender Parties at such time, such
Lender Party shall forthwith purchase from the other Lender Parties such
participations in the Obligations due and payable or owing to them, as the case
may be, as shall be necessary to cause such purchasing Lender Party to share
the excess payment ratably with each of them; provided, however,
that if all or any portion of such excess payment is thereafter

 

77

 

recovered from such purchasing Lender Party, such
purchase from each other Lender Party shall be rescinded and such other Lender
Party shall repay to the purchasing Lender Party the purchase price to the
extent of such Lender Party’s ratable share (according to the proportion of (i) the
purchase price paid to such Lender Party to (ii) the aggregate purchase
price paid to all Lender Parties) of such recovery together with an amount
equal to such Lender Party’s ratable share (according to the proportion of (i) the
amount of such other Lender Party’s required repayment to (ii) the total
amount so recovered from the purchasing Lender Party) of any interest or other
amount paid or payable by the purchasing Lender Party in respect of the total
amount so recovered.  Each Co-Borrower
agrees that any Lender Party so purchasing a participation from another Lender
Party pursuant to this Section 2.13 may, to the fullest extent
permitted by law, exercise all its rights of payment (including the right of
set-off) with respect to such participation as fully as if such Lender Party
were the direct creditor of the applicable Co-Borrowers in the amount of such
participation.

 

Section 2.14 
Use of Proceeds.  The
proceeds of the Revolving Advances, Swingline Advances and issuances of Letters
of Credit shall be available (and the Co-Borrowers agree that they shall use
the proceeds of such Advances and request the issuance of Letters of Credit):

 

(a)                                  on the Closing Date to pay fees and expenses incurred by the Loan Parties
in connection with the Transaction; provided that not more than
$15,000,000 of the Advances may be utilized on the Closing Date to pay amounts
owing to finance the Refinancing (including the issuance of letters of credit
to replace or support letters of credit outstanding under the Existing Credit
Agreement) or to pay fees and expenses incurred in connection with the
Transaction;

 

(b)                                 for working capital requirements and general corporate purposes relating
to the Borrower’s and each other Loan Party’s operations (and in the case of
issuance of Letters of Credit, to replace, or in substitution for, letters of credit
issued under the Existing Credit Agreement, and otherwise in accordance with
the requirements of Section 2.03), provided that no portion of any
Advance or any Letter of Credit shall be used directly or indirectly, to
purchase or carry any Margin Stock, directly or indirectly, or to extend credit
for the purpose of purchasing or carrying any such Margin Stock for the purpose
of reducing or retiring any indebtedness which was originally incurred to
purchase or carry any Margin Stock or for any other purpose which might cause
any Borrowing or the issuance of any Letter of Credit under this Agreement to
be considered a “purpose credit” within the meaning of Regulation T, U or X or
otherwise violate any of the Regulations of the Board.

 

Section 2.15 
Defaulting Lenders.  (a)  In the event that, at any one time,
(i) any Lender Party shall be a Defaulting Lender, (ii) such
Defaulting Lender shall owe a Defaulted Advance to any Co-Borrower and (iii) such
Co-Borrower shall be required to make any payment hereunder or under any other
Loan Document to or for the account of such Defaulting Lender, then such
Co-Borrower may, so long as no Default shall occur or be continuing at such
time and to the fullest extent permitted by applicable law, set off and
otherwise apply the Obligation of such Co-Borrower to make such payment to or
for the account of such Defaulting Lender against the obligation of such
Defaulting Lender to make such Defaulted Advance.  In the event that, on any date, such
Co-Borrower shall so set off and otherwise apply its obligation to make any
such

 

78

 

payment against the
obligation of such Defaulting Lender to make any such Defaulted Advance on or
prior to such date, the amount so set off and otherwise applied by such
Co-Borrower shall constitute for all purposes of this Agreement and the other
Loan Documents an Advance by such Defaulting Lender made on the date pursuant
to which such Defaulted Advance was originally required to have been made
pursuant to Section 2.01. 
Such Advance shall be a Base Rate Advance and shall be considered, for
all purposes of this Agreement, to comprise part of the Borrowing in connection
with which such Defaulted Advance was originally required to have been made
pursuant to Section 2.01, even if the other Advances comprising
such Borrowing shall be LIBOR Advances on the date such Revolving Advance is
deemed to be made pursuant to this subsection (a).  The Funds Administrator shall notify the
Administrative Agent any time that a Co-Borrower exercises its right of set-off
pursuant to this subsection (a) and shall set forth in such notice (A) the
name of the Defaulting Lender and the Defaulted Advance required to be made by
such Defaulting Lender and (B) the amount set off and otherwise applied in
respect of such Defaulted Advance pursuant to this subsection (a).  Any portion of such payment otherwise
required to be made by a Co-Borrower to or for the account of such Defaulting
Lender which is paid by such Co-Borrower, after giving effect to the amount set
off and otherwise applied by such Co-Borrower pursuant to this subsection (a),
shall be applied by the Administrative Agent as specified in subsection (b) or
(c) of this Section 2.15.

 

(b)                                 In the event that, at any one time, (i) any Lender Party shall be a
Defaulting Lender, (ii) such Defaulting Lender shall owe a Defaulted
Amount to the Administrative Agent or any of the other Lender Parties and (iii) any
Co-Borrower shall make any payment hereunder or under any other Loan Document
to the Administrative Agent for the account of such Defaulting Lender, then the
Administrative Agent may, on its behalf or on behalf of such other Lender
Parties and to the fullest extent permitted by applicable law, apply at such
time the amount so paid by that Co-Borrower to or for the account of such
Defaulting Lender to the payment of each such Defaulted Amount to the extent
required to pay such Defaulted Amount. 
In the event that the Administrative Agent shall so apply any such
amount to the payment of any such Defaulted Amount on any date, the amount so
applied by the Administrative Agent shall constitute for all purposes of this
Agreement and the other Loan Documents payment, to such extent, of such
Defaulted Amount on such date.  Any such
amount so applied by the Administrative Agent shall be retained by the
Administrative Agent or distributed by the Administrative Agent to such other
Lender Parties, ratably in accordance with the respective portions of such
Defaulted Amounts payable at such time to the Administrative Agent and such
other Lender Parties and, if the amount of such payment made by that
Co-Borrower shall at such time be insufficient to pay all such Defaulted
Amounts owing by each such Defaulting Lender at such time to the Administrative
Agent and the other Lender Parties, in the following order of priority.

 

(A)                              first, to the
Administrative Agent for any such Defaulted Amount then owing by each such
Defaulting Lender to the Administrative Agent; and

 

(B)                                second, to any other
Lender Parties for any such Defaulted Amounts then owing by each such
Defaulting Lender to such other Lender Parties, ratably in accordance with such
respective Defaulted Amounts then owing to such other Lender Parties.

 

79

 

Any portion of such amount
paid by such Co-Borrower for the account of such Defaulting Lender remaining,
after giving effect to the amount applied by the Administrative Agent pursuant
to this subsection (b), shall be applied by the Administrative Agent as
specified in subsection (c) of this Section 2.15.

 

(c)                                  In the event that, at any one time, (i) any Lender Party shall be a
Defaulting Lender, (ii) such Defaulting Lender shall not owe a Defaulted
Advance or a Defaulted Amount and (iii) any Co-Borrower, the
Administrative Agent or any other Lender Party shall be required to pay or
distribute any amount hereunder or under any other Loan Document to or for the
account of such Defaulting Lender, then such Co-Borrower or such other Lender
Party shall pay such amount to the Administrative Agent to be held by the
Administrative Agent, to the fullest extent permitted by applicable law, in
escrow or the Administrative Agent shall, to the fullest extent permitted by
applicable law, hold in escrow such amount otherwise held by it.  Any funds held by the Administrative Agent in
escrow under this subsection (c) shall be deposited by the Administrative
Agent in an account with DBTCA, in the name and under the control of the
Administrative Agent, but subject to the provisions of this subsection
(c).  The terms applicable to such
account, including the rate of interest payable with respect to the credit
balance of such account from time to time, shall be DBTCA’s standard terms
applicable to escrow accounts maintained with it.  Any interest credited to such account from
time to time shall be held by the Administrative Agent in escrow under, and
applied by the Administrative Agent from time to time in accordance with the
provisions of, this subsection (c).  The
Administrative Agent shall, to the fullest extent permitted by applicable law,
apply all funds so held in escrow from time to time to the extent necessary to
make any Advances required to be made by such Defaulting Lender and to pay any
amount payable by such Defaulting Lender hereunder and under the other Loan
Documents to the Administrative Agent or any other Lender Party, as and when
such Advances or amounts are required to be made or paid and, if the amount so
held in escrow shall at any time be insufficient to make and pay all such
Advances and amounts required to be made or paid at such time, in the following
order of priority:

 

(A)                              first, to the
Administrative Agent for any amount then due and payable by such Defaulting
Lender to the Administrative Agent hereunder;

 

(B)                                second, to any other
Lender Parties for any amount then due and payable by such Defaulting Lender to
such other Lender Parties hereunder, ratably in accordance with such respective
amounts then due and payable to such other Lender Parties; and

 

(C)                                third, to the Funds
Administrator for any Advance then required to be made by such Defaulting
Lender pursuant to the Commitment of such Defaulting Lender.

 

In the event that any
Lender Party that is a Defaulting Lender shall, at any time, cease to be a
Defaulting Lender, any funds held by the Administrative Agent in escrow at such
time with respect to such Lender Party shall be distributed by the
Administrative Agent to such Lender Party and applied by such Lender Party to
the Obligations owing to such Lender Party at such time under this Agreement
and the other Loan Documents ratably in accordance with the respective amounts
of such Obligations outstanding at such time.

 

80

 

(d)                                 Notwithstanding anything to the contrary contained in this Agreement, in
the event that any Lender is a Defaulting Lender, no Issuing Bank shall be
required to issue, renew, extend or amend any Letter of Credit, unless such
Issuing Bank has entered into arrangements satisfactory to it and the Borrower
to eliminate such Issuing Bank’s risk with respect to each Defaulting Lender’s
participation in Letters of Credit issued by such Issuing Bank (which
arrangements are hereby consented to by the Lenders), including by cash
collateralizing each Defaulting Lender’s Pro Rata Share of the Letter of Credit
Outstandings with respect to such Letters of Credit (such arrangements, the “Letter
of Credit Back-Stop Arrangements”).

 

(e)                                  If any Lender becomes a Defaulting Lender at any time that any Letter of
Credit issued by any Issuing Bank is outstanding, the Borrower shall enter into
the applicable Letter of Credit Back-Stop Arrangements with such Issuing Bank
no later than 10 Business Days after the date such Lender becomes a Defaulting
Lender.

 

(f)                                    Notwithstanding any provision to the contrary contained in Section 2.01(b),
(i) the Swingline Bank shall not be obligated to make any Swingline
Advances at a time when any Lender is a Defaulting Lender unless the Swingline
Bank has entered into arrangements satisfactory to it and the Borrower to
eliminate the Swingline Bank’s risk with respect to each Defaulting Lender’s
participation in such Swingline Advances, including by cash collateralizing
such Defaulting Lender’s Pro Rata Share of the outstanding Swingline Advances
(such arrangements, the “Swingline Back-Stop Arrangements”), and (ii) the
Swingline Bank shall not make any Swingline Advance after it has received
written notice from the Borrower, any other Loan Party or the Majority Lenders
stating that a Default or an Event of Default exists and is continuing until
such time as the Swingline Bank shall have received written notice (A) of
rescission of all such notices from the party or parties originally delivering
such notice or notices or (B) of the waiver of such Default or an Event of
Default.

 

(g)                                 The rights and remedies against a Defaulting Lender under this Section 2.15
are in addition to other rights and remedies that any Co-Borrower may have
against such Defaulting Lender with respect to any Defaulted Advance and that
the Administrative Agent or any Lender Party may have against such Defaulting
Lender with respect to any Defaulted Amount.

 

Section 2.16 
Incremental Loan Commitments.  (a)  The Funds Administrator shall have
the right, in consultation and coordination with the Administrative Agent as to
all of the matters set forth below in this Section 2.16, but
without requiring the consent of the Administrative Agent (except as otherwise
provided in this Section 2.16) or the Lenders, to request at any
time and from time to time after the Closing Date (or, if later, after the
satisfaction of any condition previously agreed to among the Administrative
Agent and the Funds Administrator) and prior to the Termination Date that one
or more Lenders (and/or one or more other Persons which are Eligible Assignees
and which will become Lenders) provide Incremental Commitments and, subject to
the applicable terms and conditions contained in this Agreement and the
relevant Incremental Commitment Agreement, make Advances and participate in
Letters of Credit and Swingline Advances pursuant thereto; provided that
(i) no Lender shall be obligated to provide an Incremental Commitment, and
until such time, if any, as such Lender has agreed in its sole discretion to provide
an Incremental Commitment and executed and delivered

 

81

 

to the Administrative Agent, the Funds Administrator
and the Co-Borrowers an Incremental Commitment Agreement as provided in clause (b) of
this Section 2.16, such Lender shall not be obligated to fund any
Advances in excess of its Commitment (if any) or participate in any Letters of
Credit or Swingline Advances in excess of its Pro Rata Share, in each case, as
in effect prior to giving effect to such Incremental Commitment provided
pursuant to this Section 2.16, (ii) any Lender (including any
Person which is an Eligible Assignee who will become a Lender) may so provide
an Incremental Commitment without the consent of the Administrative Agent or any
other Lender; provided that any Person that is not a Lender prior to the
effectiveness of its Incremental Commitment shall require the consent of the
Administrative Agent, the Swingline Bank and each Issuing Bank (which consents
shall not be unreasonably withheld) to provide an Incremental Commitment in
accordance with this Section 2.16, (iii) the aggregate amount
of each request (and provision therefor) for Incremental Commitments shall be
in a minimum aggregate amount for all Lenders which provide an Incremental
Commitment pursuant to a given Incremental Commitment Agreement pursuant to
this Section 2.16 (including Persons who are Eligible Assignees and
will become Lenders) of at least $10,000,000, or, if less, the remaining
unutilized balance of the Maximum Incremental Amount (or such lesser amount
that is acceptable to the Administrative Agent), (iv) the aggregate amount
of all Incremental Commitments permitted to be provided pursuant to this Section 2.16
shall not exceed the Maximum Incremental Amount, (v) the Funds
Administrator shall not increase the Commitment pursuant to this Section 2.16
more than 3 times, (vi) such Incremental Commitments shall have the same
terms (other than any arrangement fees, upfront fees or original issue
discount) payable at the time of and in connection with the applicable
Incremental Commitment Agreement) as the Commitments, (vii) all Advances
incurred pursuant to an Incremental Commitment (and all interest, fees and
other amounts payable thereon) shall be Obligations under this Agreement and
the other applicable Loan Documents and shall be secured by the relevant
Collateral Documents, and guaranteed under the Guarantee and Collateral
Agreement and each other relevant guarantee, on a pari  passu
basis with all other Advances secured by each relevant Collateral Document and
guaranteed under the Guarantee and Collateral Agreement and each other relevant
guarantee, and (viii) each Lender (including any Person which is an
Eligible Assignee who will become a Lender) agreeing to provide an Incremental
Commitment pursuant to an Incremental Commitment Agreement shall, subject to
the satisfaction of the relevant conditions set forth in this Agreement,
participate in Letters of Credit pursuant to Sections 2.03 and 2.04,
respectively, and make Advances as provided in Section 2.02 and
such Advances shall constitute Advances for all purposes of this Agreement and
the other applicable Loan Documents.

 

(b)                         At the time of the provision of Incremental Commitments pursuant to this Section 2.16,
(i) the Co-Borrowers, each Subsidiary Guarantor, the Administrative Agent
and each such Lender or other Eligible Assignee which agrees to provide an
Incremental Commitment (each, an “Incremental Lender”) shall execute and
deliver to the Funds Administrator and the Administrative Agent an Incremental
Commitment Agreement, appropriately completed (with the effectiveness of the
Incremental Commitment provided therein to occur on the date set forth in such
Incremental Commitment Agreement, which date in any event shall be no earlier
than the date on which (w) all fees required to be paid in connection
therewith at the time of such effectiveness shall have been paid, (x) all
Incremental Commitment Requirements have been satisfied, (y) all
conditions set forth in this Section 2.16 shall have been satisfied
and (z) all other conditions precedent that may be set forth in such
Incremental Commitment Agreement shall have been satisfied) and (ii) the
Co-Borrowers, each

 

82

 

Subsidiary
Guarantor and the Administrative Agent and each Incremental Lender (as
applicable) shall execute and deliver to the Administrative Agent such
additional Collateral Documents and/or amendments to the Collateral Documents
which are necessary to ensure that all Advances incurred pursuant to the
Incremental Commitments are secured by each relevant Collateral Document (the “Incremental
Collateral Documents”).  The
Administrative Agent shall promptly notify each Lender as to the effectiveness
of each Incremental Commitment Agreement and, at such time, Schedule I
shall be deemed modified to reflect the Incremental Commitments of such
Incremental Lenders.

 

(c)                          It is understood and agreed that the Incremental Commitments provided by
an Incremental Lender or Incremental Lenders, as the case may be, pursuant to
each Incremental Commitment Agreement shall constitute part of, and be added
to, the Total Commitment and each Incremental Lender shall constitute a Lender
for all purposes of this Agreement and each other applicable Loan Document.

 

(d)                         At the time of any provision of Incremental Commitments pursuant to this Section 2.16,
the Funds Administrator shall, in coordination with the Administrative Agent,
repay outstanding Advances of certain of the Lenders, and incur additional
Advances from certain other Lenders (including the Incremental Lenders), in
each case to the extent necessary so that all of the Lenders participate in
each outstanding Borrowing of Advances pro  rata on the basis of
their respective Commitments (after giving effect to any increase in the Total
Commitment pursuant to this Section 2.16) and with the Co-Borrowers
being obligated to pay to the respective Lenders any costs of the type referred
to in Section 2.10 in connection with any such repayment and/or
Borrowing.

 

ARTICLE III

 

Conditions
of Effectiveness of Lending

 

Section 3.01 
Conditions Precedent to Closing Date.  The obligation of each Lender to make an
Advance, the obligation of the Swingline Bank to make a Swingline Advance and
the obligation of the Initial Issuing Bank to issue one or more Letters of
Credit is subject to the satisfaction or waiver of the following conditions
precedent before or concurrently with the date (the “Closing Date”) when
the following conditions shall have been satisfied:

 

(a)                                  Executed Credit Agreement.  The Administrative Agent shall have received
this Agreement, executed and delivered by the Co-Borrowers, each of the Initial
Lenders, the Swingline Bank, the Initial Issuing Bank, the Administrative
Agent, the Co-Collateral Agents and the Security Agent.

 

(b)                                 Consummation of Financing Transactions; etc.  (i)  On or prior to the
Closing Date, the Borrower shall have (x) issued $310,000,000 of an
aggregate principal amount of the Senior Secured Notes and (y) utilized
(and caused its Subsidiaries to utilize) the full amount of the cash proceeds
received by it to pay fees and expenses incurred in connection with the
issuance of the Senior Secured Notes and to make payments owing in connection
with the

 

83

 

Transaction prior to the
utilization by the Borrower of any proceeds of Advances for such purpose.

 

(ii)                                  On the Closing Date, the issuance of the
Senior Secured Notes shall have been consummated in accordance with the terms
and conditions of the Senior Secured Notes Documents and all applicable
law.  On the Closing Date, (x) the
Administrative Agent shall have received true and correct copies of all Senior
Secured Notes Documents certified as such by a Responsible Officer of the
Borrower, (y) all such Senior Secured Notes Documents and all terms and
conditions thereof shall be in form and substance reasonably satisfactory to
the Administrative Agent and the Majority Lenders and (z) all such
Documents shall be in full force and effect. 
All conditions precedent to the consummation of the issuance of the
Senior Secured Notes, as set forth in the relevant documents therefor, shall
have been satisfied, and not waived unless consented to by the Administrative
Agent and the Majority Lenders, to the reasonable satisfaction of the
Administrative Agent and the Majority Lenders.

 

(c)                                  Consummation of the Refinancing.  (i)  On or prior to the Closing Date and
concurrently with the incurrence of any Advances and the use of any such
Advances to finance the Refinancing on such date, all Debt of the Borrower and
its Subsidiaries under the Existing Credit Agreement shall have been repaid in
full, together with all fees and other amounts owing thereon, all commitments
under the Existing Credit Agreement shall have been terminated, all guarantees
and security in respect thereof shall have been terminated and all letters of
credit issued pursuant to the Existing Credit Agreement shall have been
terminated or other arrangements satisfactory to the issuer of such letters of
credit shall have been made.

 

(ii)                                  On the Closing Date and concurrently with the
incurrence of any Advances on such date, all guarantees and security interests
in respect of, and Liens securing, the Debt under the Existing Credit Agreement
created pursuant to the security documentation relating to the Existing Credit
Agreement shall have been terminated and released, and the Administrative Agent
shall have received all such releases as may have been requested by the Administrative
Agent, which releases shall be in form and substance reasonably satisfactory to
the Administrative Agent.  Without
limiting the foregoing, there shall have been delivered to the Administrative
Agent (x) proper termination statements (Form UCC-3 or the
appropriate equivalent) for filing under the UCC or equivalent statute or
regulation of each jurisdiction where a financing statement or application for
registration (Form UCC-1 or the appropriate equivalent) was filed with
respect to the Borrower or any of its Subsidiaries in connection with the
security interests created with respect to the Existing Credit Agreement, (y) terminations
or reassignments of any security interest in, or Lien on, any patents,
trademarks, copyrights, or similar interests of  the Borrower or any of its Subsidiaries on
which filings have been made and (z) terminations of all mortgages,
leasehold mortgages, hypothecs and deeds of trust created with respect to
property of the Borrower or any of its Subsidiaries, in each case, to secure
the obligations under the Existing Credit Agreement, all of which shall be in
form and substance reasonably satisfactory to the Administrative Agent.

 

(iii)                               On the Closing Date and after giving effect to
the consummation of the Transaction, the Borrower and its Subsidiaries shall
have no outstanding Disqualified

 

84

 

Equity Interests or Debt, except for (i) Debt
pursuant to or in respect of the Loan Documents, (ii) the Senior Secured
Notes, (iii) the Existing Debt and (iv) intercompany Debt permitted
pursuant to Section 6.02.  On
and as of the Closing Date, all of the Existing Debt shall remain outstanding
after giving effect to the Transaction without any material breach, required
repayment, required offer to purchase, default, event of default or termination
rights existing thereunder or arising as a result of the Transaction.

 

(d)                                 No Litigation.  There shall exist no action, suit,
investigation, litigation or proceeding affecting any Loan Party or any of its
Subsidiaries pending or threatened before any court, governmental agency or
arbitrator that (i) would reasonably be likely to have a Material Adverse
Effect or (ii) purports to affect the legality, validity or enforceability
of this Agreement, any Note, the Existing Senior Convertible Notes Documents,
any other Loan Documents, the Senior Secured Notes Documents or the
consummation of the transactions contemplated hereby.

 

(e)                                  Consents and Approvals.  All governmental and third party consents and
approvals necessary in connection with the Transaction and the Loan Documents
and the transactions contemplated thereby shall have been obtained (without the
imposition of any conditions that are not reasonably acceptable to the
Administrative Agent) and shall remain in effect; all applicable waiting
periods shall have expired without any action being taken by any competent
authority; and no law or regulation shall be applicable in the reasonable
judgment of the Administrative Agent that restrains, prevents or imposes
materially adverse conditions upon the Transaction and the Loan Documents and
the transactions contemplated thereby.

 

(f)                                    Payment of Fees.  The Administrative Agent shall have received,
for its own account and for the account of the Initial Lenders, the fees owing
under the Fee Letters.

 

(g)                                 Payment of Costs and Expenses.  The Administrative Agent, White &
Case LLP, special New York counsel and Mexican counsel, and Stikeman Elliott
LLP, Canadian counsel, as legal advisors to the Administrative Agent, shall
each have received all reasonable and documented costs and expenses (including
reasonable fees for professional services incurred or rendered, as the case may
be, by any of them) required to be paid, and for which invoices have been
presented, before the Closing Date.

 

(h)                                 Corporate Documents; Officer’s
Certificates; Copies of Documents; Etc.  The Administrative Agent shall have received on or before the Closing
Date the following, each dated such day (unless otherwise specified), in form
and substance reasonably satisfactory to the Administrative Agent (unless
otherwise specified):

 

(i)                                     Notes.  A Note
payable to the order of the Swingline Bank or each Lender that has requested
the same.

 

(ii)                                  Resolutions.  Certified
copies of the resolutions of the board of directors (or other applicable
governing body) of the Borrower and each other Loan Party approving each Loan
Document to which it is or is to be a party and the transactions contemplated
thereby, and of all documents evidencing other necessary corporate action and
governmental and other third party approvals and consents, if any, with respect
to the Transaction, this Agreement, the Notes and each other Loan Document.

 

85

 

(iii)                               Good Standings.  (A) For
each Loan Party, a copy of a certificate of the Secretary of State of the
jurisdiction of its incorporation or formation dated reasonably near the
Closing Date, listing the charter (or other formation document) of such Loan Party
and each amendment thereto on file in his office and certifying that
(x) such amendments are the only amendments to such Loan Party’s charter
(or other formation document) on file in his office, (y) each Loan Party
has paid all franchise taxes to the date of such certificate and (z) each
Loan Party is duly incorporated or formed and in good standing under the laws
of the state of its incorporation or formation.

 

(iv)                              Officers’ Certificates.  A
certificate of the Borrower and each other Loan Party, signed on behalf of the
Borrower and such other Loan Party by its President or a Vice President and its
Secretary or any Assistant Secretary (or in the case of any Loan Party that is
a limited liability company or limited partnership, by a duly authorized officer
of either such Loan Party or the general partner, manager or managing member of
such Loan Party), dated the Closing Date (the statements made in which
certificate shall be true on and as of the Closing Date), certifying as to (A) the
absence of any amendments to the charter (or other formation document) of such
Loan Party since the date of the certificate referred to in Section 3.01(h)(iii),
(B) attaching the bylaws (or other organizational documents of such Loan
Party and certifying the absence of any amendments to such bylaws (or other
organizational document) of such Loan Party delivered to the Administrative
Agent and as in effect on the Closing Date, (C) the absence of any
proceeding for the dissolution or liquidation of such Loan Party, (D) the
truth and accuracy in all material respects of the representations and
warranties contained in the Loan Documents as though made on and as of the
Closing Date after giving effect to the Transaction and (E) the absence of
any event occurring and continuing, or resulting from the effectiveness of this
Agreement that constitutes a Default.

 

(v)                                 Incumbency.  A
certificate of the Secretary or an Assistant Secretary of each Loan Party (or
in the case of any Loan Party that is a limited liability company or limited partnership,
by a duly authorized officer of either such Loan Party or the general partner,
manager or managing member of such Loan Party) certifying the names and true
signatures of the directors and/or officers of such Loan Party (or in the case
of any Loan Party that is a limited liability company or limited partnership,
by a duly authorized officer of either such Loan Party or of the general
partner, manager or managing member of such Loan Party) authorized to sign this
Agreement, the Notes and each other Loan Document to which they are or are to
be parties and the other documents to be delivered hereunder and thereunder.

 

(vi)                              Guarantee and Collateral Agreement.  The
Guarantee and Collateral Agreement, duly executed by the Borrower and each
other Loan Party, together with:

 

(A)                              delivery to the
Senior Secured Noteholder Collateral Agent of the certificates representing the
issued and outstanding capital stock, limited liability company interests,
partnership interests or other ownership or profit interest owned by the Loan
Parties and required to be pledged under the Collateral Documents, accompanied
by undated stock powers executed in blank; provided that, no more than
66% of the issued and outstanding voting stock and 100% of

 

86

 

the non-voting stock of any
first-tier Foreign Subsidiaries of the Borrower or any Loan Party shall be
required to be pledged,

 

(B)                                copies of
proper financing statements thereto, to be duly filed on or before the Closing
Date under the UCC of all jurisdictions that the Security Agent may deem
necessary or desirable in order to perfect and protect the first priority liens
and security interests created under the Guarantee and Collateral Agreement,
covering the Collateral described therein,

 

(C)                                certified and
completed copies of requests for information, dated on or before the Closing
Date, listing all other effective financing statements filed in the
jurisdictions where the Loan Parties are incorporated and, to the extent that
perfection of security requires filing where assets are located, where the Loan
Parties’ assets are located that name the Borrower or any other Loan Party as
debtor, together with copies of such other financing statements,

 

(D)                               evidence of the
completion of recordings and filings, if any, of or with respect to the
Guarantee and Collateral Agreement that the Security Agent may reasonably deem
necessary or desirable in order to perfect and protect the Liens created
thereby, and

 

(E)                                 evidence that
all other action that the Security Agent may reasonably deem necessary or
desirable in order to perfect and protect the first priority liens and security
interests created under any of the Collateral Documents (including, without
limitation, any action so deemed necessary or desirable as a result of changes
in the names or corporate structure of any of the Borrower’s subsidiaries) has
been taken and remains in full force and effect.

 

(vii)                           Financial Statements.  True
and correct copies of the historical financial statements referred to in Section 4.01(f).

 

(viii)                        Borrowing Base Certificate.  The
Initial Borrowing Base Certificate in form and substance satisfactory to the
Co-Collateral Agents.

 

(ix)                                Appraisal Report and Collateral Examination.  (x) An
Appraisal Report in respect of the Inventory of the Loan Parties in a form
satisfactory to the Co-Collateral Agents, and (y) a field examination and
auditor report in respect of the Accounts and Inventory of the Loan Parties in
a form satisfactory to the Co-Collateral Agents.

 

(x)                                   Accuride Mexican Pledge Agreement.  A
duly authorized and executed Accuride Mexican Pledge Agreement dated as of the
date hereof together with evidence of the completion of all recordings, filings
and other actions necessary under Mexican law to perfect and protect the second
priority pledge created by the Accuride Mexican Pledge Agreement.

 

(xi)                                Bostrom Mexican Pledge Agreement.  A
duly authorized and executed Bostrom Mexican Pledge Agreement dated as of the
date hereof together with evidence of the completion of all recordings, filings
and other actions necessary under Mexican

 

87

 

law to perfect and protect the second priority
pledge created by the Bostrom Mexican Pledge Agreement.

 

(xii)                             [Reserved].

 

(xiii)                          Mortgages.  Fully
executed Mortgages covering the properties listed on Schedule 3.01(h)(xiii) hereto to
the extent necessary to secure the Obligations of the applicable Loan Parties
under this Agreement or any other Loan Document, together with:  (A) a policy of title insurance issue by
a nationally recognized title insurance company, insuring the Lien of each
Mortgage as a valid Lien on the property subject thereto, free of any Liens
other than Permitted Liens, in form and substance reasonably satisfactory to
the Security Agent, together with such endorsements, coinsurance and
reinsurance as reasonably requested by the Security Agent; (B) a survey
of  each 
property subject to a Mortgage in a form sufficient for the title
insurance company to delete the standard survey exception and issue all
survey-related endorsements requested by the Security Agent, (C) “life of
loan” Federal Emergency Management Standard Flood Hazard Determinations with
respect to each parcel of real property covered by a Mortgage (together with
notice about special flood hazard area status, duly executed by the applicable
Loan Party, and evidence of flood insurance, in the event any such real
property is located in a special flood hazard area), and (D) an opinion of
local counsel from each state where a Mortgage is being recorded, in form and
substance reasonably satisfactory to the Security Agent.

 

(xiv)                         Solvency Certificate.  A
certificate, in substantially the form of Exhibit G hereto,
attesting to the Solvency of the Loan Parties after giving effect to the
Transaction, from the Borrower’s chief financial officer.

 

(xv)                            Intercreditor.  The
Intercreditor Agreement, duly executed and delivered by the Loan Parties, the
Security Agent on behalf of the Secured Parties and the Senior Secured
Noteholder Collateral Agent on behalf of the Senior Secured Noteholders.

 

(xvi)                         Legal Opinions.  A
favorable opinion of (i) Latham and Watkins LLP, U.S. counsel, in
substantially the form of Exhibit H-1 hereto and (ii) internal
counsel of the Borrower, in substantially the form of Exhibit H-2
hereto.

 

(i)                                     Insurance.  The Administrative Agent shall be satisfied
that the insurance coverage in effect on the Closing Date pertaining to the
assets of the Borrower and each other Loan Party satisfies the requirements set
forth in Section 5.03.

 

(j)                                     Know Your Customer Documentation.  The Administrative Agent shall have received,
by the date which is three days prior to the Closing Date, all documentation
and other information mutually agreed to be required by regulatory authorities
under applicable “know your customer” and anti-money laundering rules and
regulations, including the USA Patriot Act, including the information described
in Section 11.13.

 

(k)                                  Excess Availability; Cash.  On the Closing Date, (x) after giving
effect to the Transaction, Excess Availability will be greater than $35,000,000
and (y) the Consolidated Unrestricted cash and Cash Equivalents of the
Borrower shall be greater than $35,000,000.

 

88

 

Section 3.02 
Conditions Precedent to Each Borrowing and Issuance.  Except as otherwise provided in this
Agreement, the obligation of each Lender to make an Advance (other than a
Letter of Credit Advance made by an Issuing Bank pursuant to Section 2.03(e)(i))
on the occasion of each Borrowing, the obligation of the Swingline Bank to make
a Swingline Advance and the obligation of each Issuing Bank to issue Letters of
Credit or renew or extend a Letter of Credit and the right of the Funds
Administrator to request a Swingline Advance, shall be subject to the further
conditions precedent that on the date of such Borrowing or issuance or renewal
or extension of a Letter of Credit:

 

(a)                                  Notice of Revolving Borrowing; Notice of Swingline Borrowing; Letter of
Credit Request.  The following statements shall be true in all
material respects (and each of the giving of the applicable Notice of Revolving
Borrowing, Notice of Swingline Borrowing or Letter of Credit Request, and the
acceptance by the applicable Co-Borrower of the proceeds of such Borrowing or
the issuance of such Letter of Credit or the renewal or extension of such
Letter of Credit shall constitute a representation and warranty by the
Co-Borrowers that both on the date of such notice or deemed notice and on the
date of such Borrowing or issuance or renewal such statements are true):

 

(i)                                     the representations and warranties contained
in each Loan Document are correct in all material respects on and as of such
date, before and after giving effect to such Borrowing or issuance or renewal
and to the application of the proceeds therefrom, as though made on and as of
such date, other than any such representations or warranties that, by their
terms, refer to a specific date other than the date of such Borrowing or issuance
or renewal, in which case, as of such specific date; and

 

(ii)                                  no event has occurred and is continuing, or
would result from such Borrowing or issuance or renewal or from the application
of the proceeds therefrom, that constitutes a Default.

 

(b)                                 Anti-Cash Hoarding Condition.  At the time of each Revolving Borrowing (but
not the time of each issuance or renewal or extension of any Letter of Credit),
and also after giving effect thereto, the aggregate amount of cash and Cash
Equivalents (excluding cash and Cash Equivalents held in Excluded Accounts and
Cash Collateral Accounts) owned or held by the Loan Parties and their
respective Subsidiaries (as reflected in the books and records of the Loan
Parties and their respective Subsidiaries and determined after giving pro forma
effect to the making of each such Revolving Advance and the application of the
proceeds from such Revolving Advance (to the extent that such proceeds are
actually utilized by the Borrower and/or any of its Subsidiaries)) shall not exceed
$20,000,000; provided that, notwithstanding the foregoing, until the
first anniversary of the Closing Date, the Borrower and its Subsidiaries may
hold cash and Cash Equivalents in an amount exceeding $20,000,000 so long as
the aggregate principal amount of all Advances outstanding under this Agreement
is less than or equal to 50% of the Borrowing Base in effect at such time.

 

(c)                                  Delivery of Borrowing Base Certificate.  The Administrative Agent and the
Co-Collateral Agents shall have received the most recent Borrowing Base
Certificate, as required under Section 7.12, except that the
Initial Borrowing Base Certificate shall be delivered no later than the Closing
Date.

 

89

 

(d)                                 Compliance with Borrowing Base.  Notwithstanding anything to the contrary set
forth herein, it shall be a condition precedent to each Revolving Borrowing, or
issuance or renewal of a Letter of Credit, that after giving effect thereto
(and the use of the proceeds thereof) the Aggregate Exposure would not exceed
the Borrowing Base at such time.

 

Section 3.03 
Determinations Under Section 3.01.  For purposes of determining compliance with
the conditions specified in Section 3.01, each Lender Party shall
be deemed to have consented to, approved or accepted or to be satisfied with
each document or other matter required thereunder to be consented to or
approved by or acceptable or satisfactory to the Lender Parties, in each case
upon such Lender Party’s release of its signature page to this Agreement
from escrow (which release may be made by written email confirmation or
telephone call from such Lender Party or through any counsel designated for
such Lender Party).

 

ARTICLE IV

 

Representations
and Warranties

 

Section 4.01 
Representations and Warranties of the Borrower.  The Borrower represents and warrants as
follows:

 

(a)                                  Loan Parties.
Due Organization and Formation; Good Standing; Corporate, Company and
Partnership Power and Authority; Capital Stock.  Each Loan Party (i) is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization, (ii) is duly qualified and in good standing as a foreign
entity in each other jurisdiction in which it owns or leases property or in
which the conduct of its business requires it to so qualify or be licensed,
except where the failure to be so qualified or in good standing has not had or
would not reasonably be likely to have a Material Adverse Effect and (iii) has
all requisite power and authority (including, without limitation, all material
governmental licenses, permits and other approvals) to own or lease and operate
its properties and to carry on its business as now conducted and as proposed to
be conducted.  All of the outstanding
capital stock of the Borrower has been validly issued and is fully paid and
non-assessable.

 

(b)                                 Loan Parties’
Subsidiaries;  Due Organization and
Formation; Good Standing; Corporate, Limited Liability Company or Partnership
Authorization and Authority; Capital Stock, Membership Interests, Partnership
Interests.  Set forth
on Schedule 4.01(b) hereto is a complete and accurate list of all
Subsidiaries of each Loan Party as of the date of such schedule, showing as of
the date thereof (as to each such Subsidiary) the jurisdiction of its incorporation
or formation, the number of limited liability company membership interests or
partnership interests or shares of each class of capital stock authorized, and
the number outstanding, on the date thereof and the percentage of the
outstanding limited liability company membership interests, partnership
interests and shares of each such class owned (directly or indirectly) by such
Loan Party and the number of limited liability company membership interests,
partnership interests or shares covered by all outstanding options, warrants,
rights of conversion or purchase and similar rights at the date hereof.  All of the outstanding capital stock, limited
liability company membership interests and partnership interests of all of such
Subsidiaries have been validly issued, are fully paid and non-assessable and
are owned by such Loan Party or one or more of its Subsidiaries free and clear
of all Liens, except those created

 

90

 

under the Loan Documents and those created under the
Senior Secured Notes Documents.  Each
such Subsidiary (i) is a corporation, limited liability company or
partnership (as applicable) duly organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation or formation, (ii) is
duly qualified and in good standing as a foreign corporation or other entity in
each other jurisdiction in which it owns or leases property or in which the
conduct of its business requires it to so qualify or be licensed, except where
the failure to be so qualified or in good standing has not had or would not
reasonably be likely to have a Material Adverse Effect and (iii) has all
requisite corporate, limited liability company or partnership (as
applicable)  power and authority (including,
without limitation, all material governmental licenses, permits and other
approvals) to own or lease and operate its properties and to carry on its
business as now conducted and as proposed to be conducted.

 

(c)                                  Due
Authorization of Loan Documents; Non-Contravention, Etc.  The execution, delivery and performance of
each Loan Document and each Senior Secured Notes Document have been duly
authorized by all necessary corporate, limited liability company or partnership
(as applicable) action on the part of each Loan Party that is a party thereto,
and do not (i) contravene such Loan Party’s charter or bylaws, partnership
agreement or limited liability company agreement, as the case may be, or any of
its other constitutive documents, (ii) violate any applicable provision of
any material law (including, without limitation, the Exchange Act and the
Racketeer Influenced and Corrupt Organizations Chapter of the Organized Crime
Control Act of 1970), rule, regulation (including, without limitation,
Regulation X of the Board of Governors of the Federal Reserve System), order,
writ, judgment, injunction, decree, determination or award applicable to the
Borrower or to its Subsidiaries, (iii) result in a breach of, or
constitute a default under, any loan agreement, indenture, mortgage, deed of
trust or other financial instrument, or any contract or agreement, binding on
or affecting any Loan Party, any of its Subsidiaries or any of their properties
except to the extent that such breach or default would not result in a Material
Adverse Effect or (iv) except for the Liens created under the Loan
Documents and the Senior Secured Notes Documents, result in or require the
creation or imposition of any Lien upon or with respect to any of the
properties of any Loan Party or any of its Subsidiaries.

 

(d)                                 Governmental
and Third Party Approvals. 
Other than those that would not reasonably be expected to have a
Material Adverse Effect, no authorization or approval or other action by, and
no notice to or filing with, any Governmental Authority or any other third
party is required for (i) the due execution, delivery, recordation, filing
or performance by any Loan Party of any Loan Document or any Senior Secured
Notes Document to which it is or is to be a party and (ii) the
consummation of the transactions contemplated by the Loan Documents and the
Senior Secured Notes Documents.

 

(e)                                  Due Execution
and Delivery; Binding Obligation.  Each of the Loan Documents has been duly
executed and delivered by each Loan Party thereto and is the legal, valid and
binding obligation of each Loan Party thereto, enforceable against such Loan
Party in accordance with its terms, except as may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar law affecting creditor’s
rights generally or by general principles of equity.

 

(f)                                    Historical
Financial Statements.  (i) 
The audited Consolidated balance sheet of the Borrower and its Subsidiaries as
at December 31, 2009, and the related Consolidated

 

91

 

statements of income and cash flow of the Borrower
and its Subsidiaries for the fiscal year then ended, accompanied by an opinion
of Deloitte & Touche LLP, independent public accountants and (ii) the
unaudited Consolidated balance sheet of the Borrower and its Subsidiaries as at
March 31, 2010, and the related Consolidated statements of income and cash
flow of the Borrower and its Subsidiaries for the nine month period then ended,
in each case certified by the chief financial officer of the Borrower, and
copies of which have been furnished to each Lender Party, fairly present in all
material respects, the Consolidated financial condition of the Borrower and its
Subsidiaries as at such dates and the Consolidated results of the operations of
the Borrower and its Subsidiaries for the periods ended on such dates.  All such financial statements have been
prepared in accordance with GAAP applied on a consistent basis (unless
otherwise expressly noted therein) subject, in the case of the unaudited
financial statements, to normal year-end and audit adjustments and the absence
of footnotes.

 

(g)                                 Anti-Terrorism
Laws.  To the best knowledge of the
Loan Parties, no such Loan Party nor any Subsidiary thereof: (i) is, or is
controlled by or is acting on behalf of, a Restricted Party; (ii) has
received funds or other property from a Restricted Party; or (iii) is in
breach of or is the subject of any action or investigation under any
Anti-Terrorism Law.

 

(h)                                 Forecasts.  The Consolidated forecasted balance sheets,
income statements and cash flows statements of the Borrower and its
Subsidiaries delivered to the Lender Parties prior to the Closing Date or
pursuant to Section 7.05 were prepared in good faith on the basis
of the estimates and assumptions stated therein, which estimates and
assumptions were believed to be reasonable and fair in the light of conditions
existing at the time made, it being understood by the Lender Parties that such
projections as to future events are not to be viewed as facts and that actual
results during the period or periods covered by any such projections may differ
from the projected results and such differences may be material.

 

(i)                                     No Material
Adverse Effect.  After
giving effect to the Transaction (but for this purpose assuming that the Transaction
and the related financing had occurred prior to December 31, 2009), since December 31,
2009, nothing has occurred that has had, or could reasonably be expected to
have, a Material Adverse Effect.

 

(j)                                     Other
Information.  No
information, exhibit or report furnished by any Loan Party to the
Administrative Agent or any Lender Party in writing in connection with the
negotiation of the Loan Documents or pursuant to the terms of the Loan
Documents contained any untrue statement of a material fact or omitted to state
a material fact necessary to make the statements made herein and therein, taken
as a whole, not misleading at such time in light of the circumstances in which
the same were made, it being understood that for purposes of this Section 4.01(j),
such factual information does not include projections and pro forma financial information.

 

(k)                                  Litigation, Etc.  There is no action, suit, investigation,
litigation or proceeding affecting any Loan Party or any of its Subsidiaries,
including any Environmental Action, pending or, to the knowledge of any
Co-Borrower, threatened before any court, governmental agency or arbitrator
that (i) could reasonably be expected to have a Material Adverse Effect or
(ii) purports to affect the legality, validity or enforceability of this
Agreement, any Note, any other Loan Document or any Related Document or the
consummation of the

 

92

 

transactions contemplated hereby.

 

(l)                                     Compliance with
Margin Regulations.  (i) No
Co-Borrower is engaged in the business of extending credit for the purpose of
purchasing or carrying Margin Stock, and no proceeds of any Advance or any
drawing under any Letter of Credit will be used to purchase or carry any Margin
Stock or to extend credit to others for the purpose of purchasing or carrying
any Margin Stock.

 

(ii)                                  Following
application of the proceeds of each Advance or drawing under each Letter of
Credit, not more than 25 percent of the value of the assets (either of any
Co-Borrower only or of any Co-Borrower and its Subsidiaries on a Consolidated
basis) subject to the provisions of Section 6.01 or 6.04 or
subject to any restriction contained in any agreement or instrument between any
Co-Borrower and any Lender or any Affiliate of any Lender relating to Debt and
within the scope of Section 9.05 will be Margin Stock.

 

(m)                               Employee
Benefit Plans and ERISA Related Matters.  (i)  Each Plan is in compliance with
ERISA, the Internal Revenue Code and any applicable Requirement of Law, except
to the extent that any non-compliance could not reasonably be expected to
result in material liability to any Loan Party; no Reportable Event has
occurred (or is reasonably likely to occur) with respect to any Plan other than
in connection with the Bankruptcy Proceedings; no Multiemployer Plan is
insolvent or in reorganization (or is reasonably likely to be insolvent or in
reorganization), and no written notice of any such insolvency or reorganization
has been given to the Borrower, any Subsidiary or any ERISA Affiliate; each
Plan is in compliance with the minimum funding standards of Section 412
and 430 of the Internal Revenue Code and Section 302 of ERISA, and has not
applied for or received a waiver of the minimum funding standard or an
extension of any amortization period, within the meaning of Section 412 of
the Internal Revenue Code or Section 303 or 304 of ERISA; neither any Loan
Party nor any ERISA Affiliate has incurred (or is reasonably expected to incur)
any liability to or on account of a Plan pursuant to Section 515, 4062,
4063, 4064 or 4069 of ERISA or Section 4971 or 4975 of the Internal
Revenue Code or has been notified in writing that it will incur any liability
under any of the foregoing Sections with respect to any Plan, and no Loan Party
has incurred (or is reasonably expected to incur) any liability to or on
account of a Plan pursuant to Section 409, 502(i) or 502(l) of
ERISA or Section 436(f) of the Internal Revenue Code or has been
notified in writing that it will incur any liability under any of the foregoing
Sections with respect to any Plan; no Loan Party or any ERISA Affiliate has
incurred (or is reasonably expected to incur) any liability under Sections
4201, 4204 or 4212 of ERISA to a Multiemployer Plan or has been notified in
writing that it will incur any liability under any of the foregoing sections
with respect to any Multiemployer Plan; no proceedings have been instituted (or
are reasonably likely to be instituted) to terminate or to reorganize any Plan
or to appoint a trustee to administer any Plan, and no written notice of any
such proceedings has been given to any Loan Party or any ERISA Affiliate; and
no lien imposed under the Internal Revenue Code or ERISA on the assets of any
Loan Party or any ERISA Affiliate exists on account of any Plan (or is
reasonably likely to exist) nor has any Loan Party or any ERISA Affiliate been
notified in writing that such a lien will be imposed on the assets of any Loan
Party or any ERISA Affiliate on account of any Plan, except to the extent that
a breach of any of the foregoing representations and warranties in this Section 4.01(m)(i) would
not result, individually or in the aggregate, in an amount of liability that
would be reasonably likely to have a Material Adverse Effect.  No Plan has an Unfunded Current

 

93

 

Liability that would be reasonably likely to have a
Material Adverse Effect.

 

(ii)                                  With respect to
each scheme or arrangement mandated by a government other than the United
States (a “Foreign Government Scheme or Arrangement”) and with respect
to each employee pension or benefit plan maintained or contributed to by any
Subsidiary of any Loan Party that is not subject to United States law (a “Foreign
Plan”), except as in the aggregate could not reasonably be expected to have
Material Adverse Effect:

 

(A)                              Any employer
and employee contributions required by law or by the terms of any Foreign
Government Scheme or Arrangement or any Foreign Plan have been made, or if
applicable, accrued, in accordance with normal accounting practices.

 

(B)                                The fair market
value of the assets of each funded Foreign Plan in Canada that is a registered
pension plan and each other funded Foreign Plan, together with any accrued
contributions, is sufficient, in the case of each Canadian funded Foreign Plan
that is a registered pension plan and each other funded Foreign Plan to provide
for the accrued benefits determined on a solvency basis, as of the date hereof,
with respect to all current and former participants in each such Foreign Plan
according to the actuarial assumptions and valuations most recently used to
determine employer contributions to such Foreign Plan.

 

(C)                                Each Foreign
Plan required to be registered has been registered and has been maintained in
good standing with applicable regulatory authorities.

 

(n)                                 Environmental
Matters.  (i) Other than instances
of non-compliance that could not reasonably be expected to have a Material
Adverse Effect: (A) the Borrower and its Subsidiaries are in compliance
with all Environmental Laws and all Environmental Permits in all jurisdictions
in which the Borrower and each of its Subsidiaries are currently doing business
(including, without limitation having obtained all material Environmental
Permits required under Environmental Laws); and (B) the Borrower will
comply and cause each of its Subsidiaries to comply, in all material
respects,  with all such Environmental Laws
(including, without limitation, all Environmental Permits required under
Environmental Laws).

 

(ii)                                  Neither the
Borrower nor any of its Subsidiaries has treated, stored, transported or
disposed of Hazardous Materials at or from any currently or formerly owned real
estate or facility relating to its business in a manner that could reasonably
be expected to result in a Material Adverse Effect.

 

(iii)                               Except for
non-compliance that could not reasonably be expected to result in a Material
Adverse Effect and except as disclosed in Schedule 4.01(n), all past
non-compliance with Environmental Laws and Environmental Permits has been
resolved without ongoing material obligations or costs, and no circumstances
exist to the knowledge of the Borrower or any of its Subsidiaries that could (A) form
the basis of an Environmental Action against the Borrower or any of its
Subsidiaries or any of the properties described in the Mortgages that could
reasonably be expected to result in a

 

94

 

Material Adverse Effect or (B) cause
any such property respectively owned by any of them to be subject to any
material restrictions on ownership, occupancy, current use or transferability
under any Environmental Law.

 

(iv)                              Except as
disclosed in Schedule 4.01(n), as of the Closing Date, none of the
properties currently or formerly owned or operated by the Borrower or any of
its Subsidiaries is listed or proposed for listing on the NPL or any analogous
foreign, state or local list or, to the knowledge of Borrower or any of its
Subsidiaries, is adjacent to any such property.

 

(v)                                 Except as
disclosed in Schedule 4.01(n) and except for events or conditions
that could not reasonably be expected to result in a Material Adverse Effect, (A) neither
the Borrower, any of its Subsidiaries nor, to the knowledge of the Borrower or
any of its Subsidiaries, any other Person has owned or operated any underground
or aboveground storage tanks or any surface impoundments, septic tanks, pits,
sumps or lagoons in which Hazardous Materials are being or have been treated,
stored or disposed on any property currently owned or operated by the Borrower
or any of its Subsidiaries or described in the Mortgages or, to their
knowledge, on any property formerly owned or operated by the Borrower or any of
its Subsidiaries, (B) there is no asbestos or asbestos-containing material
on any property currently owned or operated by the Borrower or any of its
Subsidiaries or described in the Mortgages, (C) there are no wetlands or
any areas subject to any legal requirement or restriction in any way related to
wetlands (including, without limitation, requirements or restrictions related
to buffer or transition areas or open waters) at or affecting any property
currently owned or operated by the Borrower or any of its Subsidiaries or
described in the Mortgages, and (D) neither the Borrower, any of its
Subsidiaries, nor, to the knowledge of the Borrower or any of its Subsidiaries,
any other Person has released or discharged Hazardous Materials on any property
currently or formerly owned or operated by the Borrower or any of its
Subsidiaries or described in any of the Mortgages.

 

(vi)                              Except as
disclosed in Schedule 4.01(n) and except for investigations,
assessments or actions that could not reasonably be expected to result in a
Material Adverse Effect, neither the Borrower nor any of its Subsidiaries is
undertaking, either individually or together with other potentially responsible
parties, any investigation or assessment or remedial or response action
relating to any actual or threatened release, discharge or disposal of material
quantities or concentrations of Hazardous Materials at any site, location or
operation, either voluntarily or pursuant to the order of any governmental or
regulatory authority or the requirements of any Environmental Law; and all
Hazardous Materials generated, used, treated, handled or stored at, or
transported to or from, any property currently or formerly owned or operated by
the Borrower or any of its Subsidiaries or described in the Mortgages have been
disposed of in a manner not reasonably expected to result in a Material Adverse
Effect.

 

(o)                                 Securities Laws.  Neither any Loan Party nor any of its
Subsidiaries is an “investment company,” or an “affiliated person” of, or “promoter”
or “principal underwriter” for, an “investment company,” as such terms are
defined in the Investment Company Act of 1940, as amended.

 

95

 

(p)                                 Solvency.  The Loan Parties are, taken as a whole on a
Consolidated basis, Solvent.

 

(q)                                 Taxes.  Each Loan Party has timely filed or caused to
be filed all tax returns and reports required to have been filed and has paid
or caused to be paid all taxes, assessments and governmental charges or levies
required to have been paid by it, except (i) taxes, assessments and
governmental charges or levies that are being contested in accordance with the
proviso to Section 5.02, or (ii) to the extent that the
failure to do so would not, in the aggregate, reasonably be expected to result
in a Material Adverse Effect. As of the date hereof, no Co-Borrower is a party
to any tax sharing or similar arrangement with any Subsidiary Guarantor or any
Affiliate of a Subsidiary Guarantor.

 

(r)                                    Labor Matters.  Except as, in the aggregate, could not
reasonably be expected to have a Material Adverse Effect:  (i) there are no strikes or other labor
disputes against the Borrower or any other Subsidiary pending or, to the
knowledge of the Borrower, threatened in writing; (ii) hours worked by and
payment made to employees of the Borrower or any other Subsidiary have not been
in violation of the FLSA or any other equivalent and applicable law dealing
with such matters; and (iii) all payments due from the Borrower or any
other Subsidiary on account of employee health and welfare insurance have been
paid or accrued as a liability on the books of the relevant Person.

 

(s)                                  Existing Debt.  Set forth on Schedule 4.01(s) hereto
is a complete and accurate list of all Existing Debt, showing as of the date of
such Schedule the principal amount outstanding thereunder, the maturity date
thereof and the amortization schedule therefor, and such principal amount has
not been increased from that amount shown on such Schedule.

 

(t)                                    Owned Real
Property.  Set forth
on Schedule 4.01(t) hereto is a complete and accurate list as
of the Closing Date of all real property owned by the Borrower or any of its
Subsidiaries, showing as of the Closing Date the street address, county or
other relevant jurisdiction, state and record owner thereof.  The Borrower or such Subsidiary has good,
marketable and insurable fee simple title to such real property, free and clear
of all Liens, other than Permitted Liens and Liens created under the Loan
Documents.  To the best of the Borrower’s
knowledge, except as set forth on Schedule 4.01(t), all of the
improvements located on the properties listed on Schedule 4.01(t) lie
entirely within the boundaries of such properties and none of such improvements
violate any minimum setback requirements, other dimensional regulations or
restrictions of record.

 

(u)                                 Leased Real
Property.  Set forth
on Schedule 4.01(u) hereto is a complete and accurate list as
of the Closing Date of all material leases of real property under which the
Borrower or any of its Subsidiaries is the lessee, showing as of the Closing
Date the street address, county or other relevant jurisdiction, state, lessor,
lessee, expiration date and annual rental cost thereof.  Each such lease is the legal, valid and
binding obligation of the lessor thereof, enforceable in accordance with its
terms, except to the extent that the enforceability thereof may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
generally affecting creditors’ rights and by equitable principles (regardless
of whether enforcement is sought in equity or at law).

 

96

 

(v)                                 Leases of Real
Property.  Set forth
on Schedule 4.01(v) hereto is a complete and accurate list as
of the Closing Date of all material leases (the “Leases”) of real
property under which the Borrower or any of its Subsidiaries is the landlord,
showing as of the Closing Date the street address, county or other relevant
jurisdiction, state, lessor, lessee, expiration date and annual rental cost
thereof.  Each such lease is the legal,
valid and binding obligation of the lessee thereof, enforceable in accordance
with its terms, except to the extent that the enforceability thereof may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws generally affecting creditors’ rights and by equitable principles
(regardless of whether enforcement is sought in equity or at law).

 

(w)                               Intellectual
Property.  Set forth
on Part A of Schedule 4.01(w) hereto is a complete and
accurate list as of the Closing Date of all U.S. registered patents,
trademarks, trade names, service marks and copyrights, and all applications
therefor and licenses thereof, of the Loan Parties, showing as of the Closing
Date the jurisdiction in which registered and the registration numbers.  Set forth on Part B of Schedule 4.01(w) hereto
is a list, which is complete and accurate in all material respects, as of the
Closing Date of all other registered patents, trademarks, trade names, service
marks and copyrights, and all applications therefor and licenses thereof, of
the Loan Party, showing as of the Closing Date the jurisdiction in which
registered and the registration numbers.

 

(x)                                   Senior
Indebtedness; Subordination.  (i) The Obligations of the Borrower
under the Loan Documents constitute “Senior Indebtedness” and “Designated
Senior Indebtedness” of the Borrower under and as defined in the Subordinated
Debt Documents.  The Obligations of each
Subsidiary Guarantor under the Guarantee and Collateral Agreement constitute “Guarantor
Senior Indebtedness” of such Subsidiary Guarantor under and as defined in the
Subordinated Debt Documents and (ii) the subordination provisions
contained in the Subordinated Debt Documents are enforceable against the
Borrower and/or the other Loan Parties, to the extent such provisions are
applicable to them, and the holders of such Debt, in each case except to the
extent that the enforceability thereof may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws generally affecting
creditors’ rights and by equitable principles (regardless of whether enforcement
is sought in equity or at law).

 

(y)                                 Collateral
Matters.

 

(i)                                     After taking
the actions specified for perfection therein, each Collateral Document, when
executed and delivered, will be effective under applicable law to create in
favor of the Security Agent for the ratable benefit of the Secured Parties a
valid and enforceable security interest in the Collateral subject thereto (the
enforceability of the security interest in which is subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law), and
will, constitute a fully perfected Lien on and security interest in all right,
title and interest of the Loan Parties in the Collateral subject thereto, prior
and superior to the rights of any other Person, except for rights and
obligations secured by Permitted Liens and subject to claims with a preference
as a matter of law (it being understood that no representation is made under
this clause as to the creation, perfection or priority of any

 

97

 

Lien to the extent that such
creation, perfection or priority is determined under the law of a jurisdiction
outside of the jurisdiction governing the laws of the applicable Collateral
Document purporting to create, perfect or establish the priority of any such
Liens).

 

(ii)                                  Each Mortgage,
upon execution and delivery by the parties thereto, will create in favor of the
Security Agent (or such other trustee as may be required or desired under local
law), for the ratable benefit of the Secured Parties, a legal, valid and
enforceable security interest in and mortgage lien on the all the applicable mortgagor’s
right, title and interest in and to the properties subject thereto and the
proceeds thereof, and when the Mortgages have been filed or registered in the
appropriate jurisdiction, the Mortgages will constitute a fully perfected
security interest in and mortgage lien on all right, title and interest of the
mortgagors in the properties and the proceeds thereof, prior and superior in
right to any other Person (but subject to (i) Liens or other encumbrances
for which exceptions are taken in the policies of title insurance delivered in
respect of the mortgaged properties and (ii) Permitted Lien.

 

(z)                                   Borrowing Base
Calculation.  The
calculation of the Borrowing Base pursuant to the most recent Borrowing Base
Certificate delivered pursuant to Section 7.12 and the valuation
thereunder is complete and accurate in all material respects.

 

(aa)                            Accounts.  The Administrative Agent may rely, in
determining which Accounts are Eligible Accounts, on all statements and
representations made by the Loan Parties with respect thereto.  Each Co-Borrower hereby warrants, with
respect to each Account at the time it is shown as an Eligible Account in a
Borrowing Base Certificate, that such Account is an Eligible Account.

 

(bb)                          Inventory.  The Administrative Agent may rely, in determining
which Inventory is Eligible Inventory, on all statements and representations
made by the Loan Parties with respect thereto. 
Each Co-Borrower hereby warrants, with respect to any Inventory at the
time it is shown as being Eligible Inventory in a Borrowing Base Certificate,
that such Inventory is Eligible Inventory.

 

(cc)                            Flood Insurance.  With respect to parcels of real property
covered by the Mortgages which lie in an area designated as having special
flood hazards by the Federal Emergency Management Agency or any successor
agency thereto, the Loan Parties maintain flood insurance in an amount which
complies with the National Flood Insurance Program, as set forth in the Flood
Disaster Protection Act of 1973, as amended from time to time.

 

ARTICLE V

 

Affirmative
Covenants

 

Section 5 
Affirmative Covenants.  So
long as any Advance shall remain unpaid, any Letter of Credit shall be
outstanding or any Lender Party shall have any Commitment hereunder, the
Borrower will:

 

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Section 5.01 
Compliance with Laws, Etc.  Comply, and cause each of its Subsidiaries to
comply, in all material respects, with all applicable laws, rules, regulations
and orders, such compliance to include, without limitation, compliance with
ERISA, and the Racketeer Influenced and Corrupt Organizations Chapter of the
Organized Crime Control Act of 1970, except such as may be contested in good
faith or as to which a bona fide dispute may exist and except to the extent
that noncompliance therewith could not reasonably be expected to have a
Material Adverse Effect.

 

Section 5.02 
Payment of Taxes, Etc.  Pay and discharge, and cause each of its
Subsidiaries to pay and discharge, before the same shall become delinquent, (i) all
material taxes, assessments and governmental charges or levies imposed upon it
or upon its property prior to the date on which material penalties attach
thereto, and (ii) all lawful material claims that, if unpaid, might by law
become a material Lien upon the property of the Borrower or its Subsidiaries
not otherwise expressly permitted under this Agreement; provided, however,
that neither the Borrower nor any of its Subsidiaries shall be required to pay
or discharge any such tax, assessment, charge or claim (x) that is being
contested in good faith and by proper proceedings and as to which appropriate
reserves (in the good faith judgment of its management) are being maintained in
accordance with GAAP or (y) to the extent the non-payment would not result
in a Material Adverse Effect.

 

Section 5.03 
Maintenance of Insurance.  (i) Maintain, and cause each of its
Subsidiaries to maintain, insurance with responsible and reputable insurance
companies or associations (at the time the relevant coverage is placed or
renewed) in such amounts and covering such risks as is usually carried by
companies engaged in the same or similar businesses and owning similar
properties in the same general areas in which the Borrower or such Subsidiary
operates and (ii) furnish to the Security Agent, upon its request
therefor, full information as to the insurance carried.  Such insurance shall include physical damage
insurance on all real and personal property (whether now owned or hereafter
acquired) and business interruption insurance. 
The provisions of this Section 5.03 shall be deemed
supplemental to, but not duplicative of, the provisions of any Collateral
Documents that require the maintenance of insurance.  If the Loan Parties shall fail to maintain
insurance in accordance with this Section 5.03, or if the Loan
Parties shall fail to so endorse and deposit all policies or certificates with
respect thereto, the Security Agent shall have the right (but shall be under no
obligation) to procure such insurance and each Co-Borrower jointly and severally
agrees to reimburse the Security Agent for all costs and expenses of procuring
such insurance.

 

Section 5.04 
Preservation of Corporate, Limited Liability Company and Partnership
Existence, Etc.  Preserve and
maintain, and cause each of its 
Subsidiaries to preserve and maintain, its existence, legal structure,
legal name, rights (charter and statutory), permits, licenses, approvals,
privileges and franchises, except to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect; provided, however,
that the Borrower and its Subsidiaries may consummate any merger or
consolidation or amalgamation permitted under Section 6.03 and provided
further that neither the Borrower nor any of its Subsidiaries shall be
required to preserve any right, permit, license, approval, privilege or
franchise if the Board of Directors of the Borrower or such Subsidiary shall
determine that the preservation thereof is no longer desirable in the conduct
of the business of the Borrower or such Subsidiary,

 

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as the case may be, and that the loss thereof is not
disadvantageous in any material respect to the Borrower or such Subsidiary, as
the case may be, or the Lender Parties.

 

Section 5.05 
Conduct of Business.  From and after the Closing Date, engage, and
cause its Subsidiaries (taken as a whole) to engage, primarily in (i) the
vehicle component business and any activity or business incidental, directly
related or similar thereto, or any other lines of business carried on by the
Borrower and its Subsidiaries on the Closing Date or utilizing the Borrower’s
or Subsidiaries’ manufacturing capabilities on the Closing Date and (ii) other
businesses or activities that constitute a reasonable extension, development or
expansion thereof or that are ancillary or reasonably related thereto.

 

Section 5.06 
Visitation Rights.  At any reasonable time and from time to time,
upon reasonable notice and during normal business hours, permit any authorized
representatives designated by the Co-Collateral Agents, the Security Agent or
any Lender (provided that, unless an Event of Default shall have occurred and
is continuing, no more than two such visits and inspections may be made in any
one year and provided further that, to the extent practicable, the
Co-Collateral Agents or the Security Agent, as applicable, will coordinate any
such visits and inspections with visits and inspections), to examine and make
copies of and abstracts from the records and books of account of, and visit the
properties, plants and facilities of, the Borrower and any of its Subsidiaries,
and to discuss the affairs, finances and accounts of the Borrower and any of
its Subsidiaries with any of their officers or directors and with their independent
certified public accountants; provided that the Borrower may, if it so chooses,
be present at or participate in any such discussion.

 

Section 5.07 
Appraisals and Field Exams.  Permit, and cause each Co-Borrower to permit,
employees and designated representatives of the Co-Collateral Agents, in each
case at the Co-Borrowers’ expense at reasonable times and (except during the
continuance of an Event of Default) upon reasonable notice, to conduct
appraisals of Inventory and field exams, in each case, at such times as the
Co-Collateral Agents reasonably deem necessary or appropriate (it being
acknowledged that a single field exam, appraisal or inspection may entail
visits to multiple locations of books, records and assets of the Co-Borrowers);
provided that during (A) the Fiscal Year ending December 31, 2010,
the Co-Collateral Agents shall not request that any appraisals of Inventory or
field exams be conducted unless an Event of Default exists and is continuing or
Excess Availability falls below $30,000,000 and (B) each Fiscal Year after
the Fiscal Year ending December 31, 2010, the Co-Collateral Agents shall
not request that more than two appraisals of Inventory and two field exams be
conducted; provided further that (x) if a Compliance Period exists, the Co-Collateral
Agents may request one additional appraisal of Inventory and one additional
field exam be conducted and (y) if an Event of Default exists and is
continuing, none of the foregoing limitations shall apply.  In connection with any such appraisal or
field exam, such employees and designated representatives of the Co-Collateral
Agents shall be permitted (i) to visit and inspect, in consultation with
officers of the Funds Administrator (other than during an Event of Default, in
which case, no such consultation shall be required) any properties or
facilities of any Co-Borrower, (ii) to examine the books of account of any
Co-Borrower and discuss the affairs, finances and accounts of any Co-Borrower
with, and be advised as to the same by, its officers and independent
accountants (provided that an officer of the Funds Administrator may attend
such discussions with such accountants) and (iii) to verify Eligible
Accounts and/or Eligible Inventory (subject to reasonable requirements of

 

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confidentiality, including requirements imposed by
law or contract).  The Co-Collateral
Agents shall have no duty to any Co-Borrower to make any inspection, or to
share any results of any inspection, appraisal or report with, the
Co-Borrowers.  The Co-Borrowers and each
of the Subsidiary Guarantors acknowledge that all inspections, appraisals and
reports are prepared by the Security Agent for the benefit of the Lenders and
for their purposes, and neither the Co-Borrowers nor any of the Subsidiary
Guarantors shall be entitled to rely upon them.

 

Section 5.08 
Keeping of Books.  Keep, and cause each of its Subsidiaries to
keep, proper books of record and account, in which full and correct entries
shall be made of all financial transactions and the assets and business of the
Borrower and each such Subsidiary in accordance with GAAP.

 

Section 5.09 
Maintenance of Properties, Etc.  Maintain and preserve, and cause each of its
Subsidiaries to maintain and preserve, all of its properties that are used or
useful in the conduct of its business (including intellectual property) in good
working order and condition, ordinary wear and tear excepted, in each case
consistent with past practice, and will from time to time make or cause to be made
all appropriate repairs, renewals and replacements thereof, except where the
failure to do so would not reasonably be likely to have a Material Adverse
Effect.

 

Section 5.10 
Transactions with Affiliates.  Conduct, and cause each of its Subsidiaries
to conduct, all transactions otherwise permitted under the Loan Documents with
any of their Affiliates on terms that are fair and reasonable and no less
favorable to the Borrower or such Subsidiary than it would obtain in a
comparable arm’s length transaction with a Person not an Affiliate, other than (i) transactions
between or among the Loan Parties and any Subsidiaries of the Borrower; (ii) reasonable
and customary fees paid to members of the Borrower’s board of directors; (iii) the
transactions permitted by Section 6.06; (iv) transactions
otherwise expressly permitted hereunder.

 

Section 5.11 
Covenant to Guarantee Obligations and to Give Security.  When (a) any new Subsidiary of the
Borrower is formed or acquired by the Borrower or any of its Subsidiaries, or (b) the
acquisition of any property, real or personal, by any Loan Party is made, and
such property, in the judgment of the Administrative Agent, shall not already
be subject to a perfected first priority security interest in favor of the
Security Agent for the benefit of the Secured Parties, then, in each case at
the expense of the Borrower:

 

(i)                                     within twenty (20) days after such formation or acquisition or such
longer period as the Security Agent may agree, in the case of a new Subsidiary
that is a U.S. Subsidiary of the Borrower or any of its Subsidiaries or a
Co-Borrower, cause each such Subsidiary to duly execute and deliver to the
Security Agent an Assumption Agreement under which such Subsidiary becomes a
Subsidiary Guarantor and a Grantor (as defined in the Guarantee and Collateral
Agreement) and/or a Co-Borrower; provided that no Subsidiary which is
not wholly-owned (directly or indirectly) by the Borrower and the
organizational documents or agreements with other shareholders of which
prohibit the execution, delivery or performance of any such Assumption
Agreement shall be required to execute, deliver or perform such Assumption
Agreement if, after using its

 

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reasonable
efforts, the Borrower has failed to obtain any necessary consents or approvals
for the issuance of such Assumption Agreement,

 

(ii)                                  within twenty (20) days after such formation or acquisition in the case
of a wholly-owned Subsidiary which is a first-tier Subsidiary of (x) the
Borrower or (y) any other Subsidiary that is a U.S. Subsidiary, cause the
Borrower (or other relevant Subsidiary) or such longer period as the Security
Agent may agree, to pledge the stock or other equity interests of each such
Subsidiary and to duly execute and deliver such amendments to the Guarantee and
Collateral Agreement or such other documents as the Security Agent deems
necessary or advisable to grant to the Security Agent, for the benefit of the
Secured Parties, a security interest in 100% of the issued and outstanding
stock or other equity interests of such Subsidiary owned by the Borrower or
such other Loan Party, together with delivery to the Senior Secured Notes
Collateral Agent of certificates representing such pledged stock or other
equity interests accompanied by undated stock powers or other appropriate
powers or assignments executed in blank; provided, in the case of a
first-tier Subsidiary which is a Foreign Subsidiary, the Borrower (or other
relevant Subsidiary) shall not be required to pledge more than 66% of the
issued and outstanding voting stock or other equity interests of such
Subsidiary, and provided  further that the stock of any Subsidiary
which is not wholly-owned (directly or indirectly) will be owned by a
wholly-owned Subsidiary of the Borrower whose stock or other equity interests
have been pledged in accordance with the Loan Documents,

 

(iii)                               within twenty (20) days after such request, formation or acquisition or
such longer period as the Security Agent may agree, furnish to the Security
Agent all necessary information with respect to such Subsidiary and its
Subsidiaries which may be required to update the applicable Schedules to this
Agreement and to the Collateral Documents, respectively,

 

(iv)                              within thirty (30) days after such request, formation or acquisition or
such longer period as the Security Agent may agree, in the case of a new
Subsidiary that is a U.S. Subsidiary of the Borrower or any of its
Subsidiaries, duly execute and deliver, and cause each such Subsidiary, and cause
each direct and indirect parent of such Subsidiary to duly execute and deliver
to the Security Agent Mortgages, pledges, proper financing statements,
assignments, assumption agreements and other security agreements, as specified
by and in form and substance reasonably satisfactory to the Security Agent,
securing payment of all the Obligations of the Loan Parties under the Loan
Documents and constituting Liens on all such properties in each case to the
extent permitted by, and in accordance with the terms of, the Intercreditor
Agreement; provided that, no Subsidiary which is not wholly-owned
(directly or indirectly) by the Borrower and the organizational documents or
agreements with other shareholders of which prohibit the execution, delivery or
performance of any such Mortgages, pledges, proper financing statements,
assignments, assumption

 

102

 

agreements
and other security agreements shall be required to execute, deliver or perform
such Mortgages, pledges, proper financing statements, assignments, assumption
agreements and other security agreements if, after using its reasonable
efforts, any Co-Borrower has failed to obtain any necessary consents or
approvals for the execution, delivery or performance of such Mortgages,
pledges, proper financing statements, assignments, assumption agreements and
other security agreements,

 

(v)                                 within thirty (30) days after such request, formation or acquisition or
such longer period as the Security Agent may agree, duly execute and deliver,
and cause each such Subsidiary, and cause each direct and indirect parent of
such Subsidiary (other than any Foreign Subsidiary) to take whatever action
(including, without limitation, the recording of mortgages, the filing of
Uniform Commercial Code financing statements, the giving of notices and the
endorsement of notices on title documents) may be necessary or advisable in the
opinion of the Security Agent to vest in the Security Agent (or in any
representative of the Security Agent designated by it) valid and subsisting
Liens on the properties purported to be subject to the mortgages, pledges,
assignments, assumption agreements and other security agreements delivered
pursuant to this Section 5.11, enforceable against all third
parties in accordance with their terms,

 

(vi)                              as promptly as practicable after such request, formation or acquisition,
deliver, upon the reasonable request of the Security Agent, to the Security
Agent with respect to each parcel of real property owned, leased or held by the
entity that has a fair market value in excess of $2,000,000 and is the subject
of such request, formation or acquisition a Mortgage, Mortgage Policy, survey
(if available), environmental assessment report (if available) and, to the
extent available, engineering, soils and other reports, each in scope, form and
substance reasonably satisfactory to the Security Agent in each case to the
extent permitted by, and in accordance with the terms of, the Intercreditor
Agreement and if any such real property lies in an area designated as having
special flood hazards by the Federal Emergency Management Agency or any
successor agency thereto, deliver to the Security Agent evidence in form and
substance reasonably satisfactory to the Security Agent that the applicable
Loan Party maintains flood insurance on such real property in an amount which
complies with the National Flood Insurance Program, as set forth in the Flood
Disaster Protection Act of 1973, as amended from time to time; provided,
however, that (1) to the extent that the Borrower or any of its
Subsidiaries shall have otherwise received any of the foregoing items with
respect to such real property, such items shall promptly after the receipt
thereof be delivered to the Security Agent, and (2) the Security Agent
may, in its sole discretion, waive any of the foregoing requirements with
respect to any such parcels of real property owned, leased or held (other than
the requirement to maintain flood insurance),

 

(vii)                           at any time and from time to time, promptly execute and deliver any and
all further instruments and documents and take all such other action as the
Security Agent may deem necessary or desirable in obtaining the full benefits
of, or in perfecting and preserving the Liens of, such guaranties, mortgages,
pledges, assignments, security agreements and assumption agreements,

 

103

 

(viii)                        cause any Subsidiary that guarantees the Borrower’s Obligations under the
Senior Secured Notes Documents or the Existing Senior Convertible Notes
Documents to take any and all actions under this Section 5.11 as
the Security Agent may deem necessary or advisable; and

 

(ix)                                within sixty (60) days after such request or such longer period as the
Security Agent may agree, deliver to the Administrative Agent, the
Co-Collateral Agents and the Security Agent a signed copy of a favorable
opinion, addressed to the Administrative Agent, the Co-Collateral Agents and
the Security Agent, of counsel for the Borrower reasonably acceptable to the
Security Agent as to the matters contained in this Section 5.11, as
to such guarantees and security agreements being legal, valid and binding
obligations of the Borrower and its Subsidiaries enforceable in accordance with
their terms and as to such other matters as the Security Agent may reasonably
request.

 

Section 5.12 
Compliance with Environmental Laws.  Comply, and cause each of its Subsidiaries
and all lessees and other Persons operating or occupying its properties to
comply, in all material respects, with all applicable Environmental Laws and
Environmental Permits; obtain and renew and cause each of its Subsidiaries to
obtain and renew all Environmental Permits necessary for its operations and
properties; and conduct, and cause each of its Subsidiaries to conduct, any
investigation, study, sampling and testing, and undertake any cleanup, removal,
remedial or other action necessary to remove and clean up all Hazardous
Materials from any of its properties in accordance, in all material respects,
with the requirements of all Environmental Laws; provided, however,
that neither the Borrower nor any of its Subsidiaries shall be required to
conduct any investigation, study, sampling and testing, or to undertake any
such cleanup, removal, remedial or other action to the extent that its
obligation to do so is being contested in good faith or as to which a bona fide
dispute may exist and except to the extent that non-compliance therewith could
not reasonably be expected to result in a Material Adverse Effect.

 

Section 5.13 
Preparation of Environmental Reports.  At the request of the Administrative Agent
from time to time if the Administrative Agent reasonably believes the Borrower
has failed to comply with the provisions of Section 5.12, provide
to the Lender Parties within sixty (60) days after such request, at the expense
of the Borrower, an environmental site assessment report for any of its or its
Subsidiaries’ properties described in such request, prepared by an
environmental consulting firm reasonably acceptable to the Administrative
Agent, indicating the presence or absence of Hazardous Materials and the
estimated cost of any compliance, removal or remedial action in connection with
any Hazardous Materials on such properties; without limiting the generality of
the foregoing, if the Administrative Agent determines at any time that a
material risk exists that any such report will not be provided within the time
referred to above, the Administrative Agent may retain an environmental
consulting firm to prepare such report at the expense of the Borrower, and the
Borrower hereby grants and agrees to cause any Subsidiary that owns any
property described in such request to grant at the time of such request, to the
Administrative Agent, the Lender Parties, such firm and any agents or
representatives thereof an irrevocable non-exclusive license, subject to the
rights of tenants, to enter upon reasonable notice onto its or their respective
properties to undertake such an assessment.

 

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Section 5.14 
Know Your Customer Requests.  If:

 

(a)                                  a change in any Requirement of Law occurs after the Closing Date;

 

(b)                                 any change in the status of a Loan Party or the composition of the
shareholders of a Loan Party after the Closing Date; or

 

(c)                                  a proposed assignment or transfer by a Lender of any of its rights and
obligations under this Agreement to a party that is not a Lender prior to such
assignment or transfer,

 

and this obliges the
Administrative Agent or any Lender (or, in the case of paragraph (c) above,
any prospective new Lender) to comply with “know your customer” or similar
identification procedures in circumstances where the necessary information is
not already available to it, promptly upon the request of the Administrative
Agent, in its capacity as a Lender or on behalf of any Lender, to the Funds
Administrator supply, or procure the supply of, such documentation and other
evidence as is reasonably requested in good faith by the Administrative Agent
(for itself or on behalf of any Lender, or, in the case of the event described
in paragraph (c) above, on behalf of any prospective new Lender) in order
for the Administrative Agent, such Lender or, in the case of the event
described in paragraph (c) above, any prospective new Lender to carry out
and be satisfied it has complied with all necessary “know your customer” or
other similar checks under all applicable laws and regulations pursuant to the
transactions contemplated in the Loan Documents.

 

Section 5.15 
Restricted Accounts.  At all times after the Closing Date, with
respect to the Loan Parties only, cause to be maintained a system of Deposit
Accounts complying with each of the requirements set forth below:

 

(a)                                  Cash Management Control Agreement.  With respect to each Deposit Account (other
than an Excluded Account), the Loan Parties shall deliver to the Security Agent
a Cash Management Control Agreement (and each such Cash Management Control
Agreement may cover more than one Deposit Account) with respect to such Deposit
Account, which Cash Management Control Agreement shall be delivered (i) with
respect to any such Deposit Account in existence on the Closing Date or opened
prior to the date thirty (30) days after the Closing Date, on or prior to such
thirtieth (30th) day, and (ii) with respect to any such Deposit Account
opened after such thirtieth (30th) day, on the date such new Deposit Account is
opened.

 

(b)                                 Lockbox Accounts.  Each Loan Party shall instruct all Account
Debtors of such Loan Party to remit all payments with respect to all Accounts
of such Account Debtor to the applicable “P.O. Boxes” or “Lockbox
Addresses” of a Collection Bank, which remittances shall be collected by the
applicable Collection Bank and deposited in the applicable Lockbox
Account.  All amounts received by any
Loan Party and any Collection Bank in respect of any Account shall upon receipt
be deposited into a Lockbox Account or directly into the Core Concentration
Account.  At the close of each Business Day,
the Funds Administrator will cause all credit balances in each Lockbox Account
to be transferred to the Core Concentration Account.  During a Dominion Period, the Cash

 

105

 

Management
Control Agreements with each Collection Bank shall provide that such Collection
Bank will follow instructions received from the Security Agent with respect to
its Lockbox Accounts.  The Funds
Administrator and each Loan Party agrees that it will not cause any proceeds of
any Lockbox Account to be otherwise redirected. 
The Security Agent agrees that it will not send notices of control to
any Collection Bank unless a Dominion Period exists or an Event of Default
exists and is continuing.

 

(c)                                  Core Concentration Account.  (A) The Borrower will maintain a Deposit
Account with DBTCA or a financial institution reasonably acceptable to the
Administrative Agent (DBTCA or such financial institution, the “Core
Concentration Account Bank”) in the name of the Borrower (the “Core
Concentration Account”), which shall be under the “control” (as defined in Section 9-104
of the UCC) of the Security Agent.  The
Loan Parties agree that (A) no amounts shall be deposited in the Core
Concentration Account except as expressly contemplated by Section 5.15(b) and
Section 5.15(e); (B) at any time in which no Dominion Period
exists or an Event of Default exists and is continuing, the Funds Administrator
may cause the amounts held in the Core Concentration Account to be withdrawn
and applied in accordance with this Agreement; (C) during any Dominion
Period, the Cash Management Control Agreement relating to the Core
Concentration Account shall provide that upon notice from the Security Agent to
the Core Concentration Account Bank, all collected amounts held in the Core
Concentration Account shall be sent by ACH or wire transfer no less frequently
than once per Business Day to an account maintained by the Administrative Agent
for application pursuant to the instructions of the Administrative Agent
towards repayment of Advances or towards satisfaction of the Obligations (but
not to cash collateralize Letters of Credit unless an Event of Default is
continuing) in all cases subject to and as required under Section 2.06(b)(ii);
and, so long as the Core Concentration Account Bank has not received notice that
any Event of Default shall then be continuing, any balance remaining after such
application shall be released to the Borrower subject to and in accordance with
Section 2.06(b)(ii); and (D) at any time when an Event of
Default exists and is continuing, the Cash Management Control Agreement
relating to the Core Concentration Account shall provide that upon notice from
the Security Agent to the Core Concentration Account Bank, all collected
amounts held in the Core Concentration Account shall be sent by ACH or wire
transfer no less frequently than once per Business Day to an account maintained
by the Administrative Agent for application pursuant to the instructions of the
Administrative Agent in accordance with the requirements set forth in this
Agreement and (to the extent applicable) the Intercreditor Agreement towards
repayment of Advances or towards satisfaction of the Obligations (including to
cash collateralize Letters of Credit). 
The Funds Administrator and each Loan Party agrees that it will not cause
any proceeds of the Core Concentration Account to be otherwise redirected.  The Security Agent agrees that it will not
send notices of control to any Core Concentration Account Bank unless a
Dominion Period exists or an Event of Default exists and is continuing.

 

(d)                                 Cash Collateral Account.  The Loan Parties will, on or prior to the
date thirty (30) days after the Closing Date, or such longer period as agreed
to by the Security Agent, establish one or more Deposit Accounts with DBTCA
(which shall be interest bearing accounts at market rates) (each a “Cash
Collateral Account” and collectively the

 

106

 

“Cash
Collateral Accounts”), under the “control” (as defined in Section 9-104
of the UCC) of the Security Agent, into which (i) all cash received
constituting payments in respect of Collateral (other than Accounts) received
after the exercise of remedies under this Agreement or any other Loan Document
or the taking of any Enforcement Action shall be deposited by the Borrower and (ii) amounts
shall be deposited by the Co-Borrowers as required pursuant to Section 2.03(f).

 

(e)                                  Other Amounts.  All amounts received in cash from any other
source that do not constitute payments in respect of Accounts of any Loan Parties
or payments in respect of other Collateral, shall upon receipt be deposited
into a Lockbox Account, directly into the Core Concentration Account or, to the
extent permitted hereunder in the case of amounts not constituting payments in
respect of Accounts of any Loan Parties or payments in respect of other
Collateral, an Excluded Account or a Disbursement Account.

 

(f)                                    Withdrawals.  At any time when no Dominion Period exists,
the Borrower and its Subsidiaries shall be permitted to withdraw amounts from any
Deposit Account (including any Core Concentration Account) in accordance with
the terms of any applicable Cash Management Control Agreement.  During a Dominion Period, upon payment of all
outstanding Advances and so long as no Event of Default is continuing, with
respect to each Deposit Account other than any Lockbox Accounts or any Core
Concentration Account, the operation of which are governed by Section 5.15(b) and
(c) above respectively, the Borrower and its Subsidiaries may
withdraw and apply any amount standing to the credit of any such Deposit
Account in accordance with the terms of any applicable Cash Management Control
Agreement and apply such amount in accordance with the terms of this Agreement.

 

(g)                                 Excluded Accounts.  Notwithstanding anything to the contrary set
forth above in clauses (a) through (f), inclusive, no Co-Borrower shall be
permitted to transfer amounts to any Excluded Account that is a petty cash
account or to any other Excluded Account in an amount that would cause the
balance in such Excluded Accounts that are petty cash accounts to exceed
$2,500,000 in the aggregate for all such accounts.

 

Section 5.16 
ABL Priority Collateral.  Cause all proceeds received by any Loan Party
in cash or Cash Equivalents in respect of (a) any Recovery Event relating
to ABL Priority Collateral or (b) any sale, transfer, disposition or
assignment of any ABL Priority Collateral not giving rise to an Account to be
deposited directly upon receipt in a Lockbox Account or the Core Concentration
Account.

 

Section 5.17 
Designated Senior Indebtedness.  The Borrower hereby designates the
Obligations to be “Designated Senior Indebtedness” under the Existing Senior
Convertible Notes Indenture.

 

Section 5.18 
Use of Proceeds.  The
proceeds of the issuance of the Senior Secured Notes will be used to (a) repay
in full in cash all outstandings and terminate all commitments under the
Existing Credit Agreement and (b) to the extent any proceeds from the
issuance of the Senior Secured Notes remain after the application of such
proceeds per clause (a)

 

107

 

of this paragraph, to pay fees and expenses incurred
in connection with the Transaction and (c) to the extent any proceeds from
the issuance of the Senior Secured Notes remain after the application of such
proceeds per clauses (a) and (b) of this paragraph, to provide
working capital for the Borrower and its Subsidiaries and for other general
corporate purposes.

 

Section 5.19 
Permitted Acquisitions.  (a)  Subject to the provisions of this Section 5.19
and the requirements contained in the definition of Permitted Acquisition, the
Borrower and each Wholly-Owned Subsidiary of the Borrower which is a Subsidiary
Guarantor may from time to time effect Permitted Acquisitions, so long as (in
each case except to the extent the Majority Lenders otherwise specifically
agree in writing in the case of a specific Permitted Acquisition):  (A) the Payment Conditions are satisfied
at the time of the consummation of the proposed Permitted Acquisition and
immediately after giving effect thereto and (B) the Funds Administrator
shall have given to the Administrative Agent and the Lenders at least 10
Business Days’ prior written notice of any Permitted Acquisition (or such
shorter period of time as may be reasonably acceptable to the Administrative
Agent), which notice shall describe in reasonable detail the principal terms
and conditions of such Permitted Acquisition; (C) all representations and
warranties contained herein and in the other Loan Documents shall be true and
correct in all material respects with the same effect as though such
representations and warranties had been made on and as of the date of such
Permitted Acquisition (both before and after giving effect thereto), unless
stated to relate to a specific earlier date, in which case such representations
and warranties shall be true and correct in all material respects as of such
earlier date; and (D) the Funds Administrator shall have delivered to the
Administrative Agent and each Lender a certificate executed by its chief
financial officer, certifying to the best of such officer’s knowledge,
compliance with the requirements of preceding clauses (A) through (C),
inclusive, and containing the calculations (in reasonable detail) required by
preceding clause (A).

 

(b)                         At the time of each Permitted Acquisition involving the creation or
acquisition of a Subsidiary, or the acquisition of capital stock or other
Equity Interest of any Person, the capital stock or other Equity Interests
thereof created or acquired in connection with such Permitted Acquisition shall
be pledged for the benefit of the Secured Parties pursuant to (and to the
extent required by) the Guarantee and Collateral Agreement, to the extent
required pursuant to Section 5.11.

 

(c)                          The Borrower will cause each Subsidiary which is formed to effect, or is
acquired pursuant to, a Permitted Acquisition to comply with, and to execute
and deliver all of the documentation as and to the extent required by, Section 5.11,
to the reasonable satisfaction of the Security Agent.

 

(d)                         The consummation of each Permitted Acquisition shall be deemed to be a
representation and warranty by the Borrower that the certifications pursuant to
this Section 5.19 are true and correct and that all conditions thereto
have been satisfied and that the same is permitted in accordance with the terms
of this Agreement, which representation and warranty shall be deemed to be a
representation and warranty for all purposes hereunder, including, without
limitation, Article IV and Article IX.

 

108

 

ARTICLE VI

 

Negative
Covenants

 

Section 6 
Negative Covenants.  So
long as any Advance shall remain unpaid, any Letter of Credit shall be
outstanding or any Lender Party shall have any Commitment hereunder, no
Co-Borrower will, at any time:

 

Section 6.01  Liens, Etc.  Create, incur, assume or suffer to exist, or
permit any of its Subsidiaries to create, incur, assume or suffer to exist, any
Lien on or with respect to any of its properties of any character (including,
without limitation, accounts) whether now owned or hereafter acquired, except:

 

(a)                                  (x) Liens created under the Loan Documents and (y) Liens on
Collateral owned by the Loan Parties and created by or pursuant to the Senior
Secured Notes Security Documents (in each case subject to the terms of the
Intercreditor Agreement);

 

(b)                                 Permitted Liens;

 

(c)                                  Liens existing on the date hereof and described on Schedule 6.01
hereto;

 

(d)                                 (i) purchase money Liens upon or in real property or equipment
acquired or held by the Borrower or any of its Subsidiaries in the ordinary
course of business to secure the purchase price of such property or equipment
or to secure Debt incurred solely for the purpose of financing the acquisition,
construction or improvement of any such property or equipment to be subject to
such Liens, or Liens existing on any such property or equipment at the time of
acquisition (other than any such Liens created in contemplation of such
acquisition that do not secure the purchase price), or extensions, renewals or
replacements of any of the foregoing for the same or a lesser amount and (ii) Liens
to secure Debt incurred within 270 days of the acquisition, construction or
improvement of fixed or capital assets to finance the acquisition, construction
or improvement of such fixed or capital assets or otherwise incurred during
such 270 day period in respect of Capital Expenditures; provided, however,
that no such Lien shall extend to or cover any property other than the property
or equipment being acquired, constructed or improved, and no such extension,
renewal or replacement shall extend to or cover any property not theretofore
subject to the Lien being extended, renewed or replaced; and provided  further,
however, that the aggregate principal amount of the Debt secured by Liens
permitted by this clause (d) shall not exceed the aggregate amount
permitted under Section 6.02(h)) at any time outstanding and that
any such Debt shall not otherwise be prohibited by the terms of the Loan
Documents;

 

(e)                                  Liens arising in connection with Capitalized Leases permitted under Section 6.02(h));
provided that no such Lien shall extend to or cover any Collateral or
assets other than the assets subject to such Capitalized Leases;

 

(f)                                    Liens on property of a Person existing at the time such Person becomes a
Subsidiary of the Borrower or is merged into or consolidated with the Borrower
or any

 

109

 

Subsidiary
of the Borrower in accordance with Section 6.03; provided
that such Liens were not created in contemplation of such merger, consolidation
or investments and do not extend to any assets other than those of the Person
merged into or consolidated with the Borrower or such Subsidiary or acquired by
the Borrower or such Subsidiary;

 

(g)                                 the replacement, extension or renewal of any Lien permitted hereunder
upon or in the same property theretofore subject thereto or the replacement,
extension or renewal (without increase in the amount or change in any direct or
contingent obligor) of the Debt secured thereby;

 

(h)                                 Liens on the assets of Foreign Subsidiaries to secure Debt permitted to
be incurred under Section 6.02(j);

 

(i)                                     Liens on property acquired pursuant to a Permitted Acquisition, provided
that the Debt secured by such Liens is permitted pursuant to Section 6.02(r) and
such Liens are not incurred in connection with, or in contemplation or
anticipation of, such Permitted Acquisition and do not attached to any asset of
the Borrower or any other asset of its Subsidiaries;

 

(j)                                     other Liens on non-ABL Priority Collateral securing Obligations of the
Borrower and its Subsidiaries not otherwise permitted by Section 6.01
that (x) do not materially impair the use of such assets in the operation
of the business of the Borrower and any of its Subsidiaries and (y) do not
secure Obligations in an aggregate principal amount exceeding $5,000,000 at any
time outstanding; and

 

(k)                                  Liens on non-ABL Priority Collateral securing Debt incurred pursuant to Section 6.02(t) so
long as the Payment Conditions are satisfied both before and after giving
effect to such Liens.

 

Section 6.02 
Debt.  Create,
incur, assume or suffer to exist, or permit any of its Subsidiaries to create,
incur, assume or suffer to exist, any Debt other than:

 

(a)                                  Debt under the Loan Documents;

 

(b)                                 the Senior Secured Notes in an aggregate principal amount outstanding as
of the Closing Date (as subsequently reduced by the amount of any payments or
prepayments of principal thereof made after the Closing Date) and any Permitted
Refinancing Debt in respect thereof;

 

(c)                                  the Existing Senior Convertible Notes in an aggregate principal amount
outstanding as of the Closing Date (and any additions of paid in kind interest
to the outstanding principal amount thereof) (as subsequently reduced by the
amount of any payments or prepayments of principal thereof made after the
Closing Date);

 

(d)                                 in the case of the Borrower only, Subordinated Debt that is (i) additional
senior convertible notes issued on terms that are identical to the Existing
Senior Convertible Notes or (ii) other Subordinated Debt, in each case
that (x) is unsecured and subordinated to the Obligations of the
Co-Borrowers hereunder on the terms required by

 

110

 

the
definition of “Subordinated Debt” and (y) has a scheduled maturity that is
later than six (6) months following the scheduled final maturity date of
the Facility (all Subordinated Debt satisfying the foregoing, “Permitted
Subordinated Debt”) in each case so long as the Payment Conditions are
satisfied both before and after giving effect to the incurrence of such Debt;

 

(e)                                  in the case of Subsidiary Guarantors only, guaranty Obligations in
respect of (i) the Senior Secured Notes, (ii) Permitted Subordinated
Debt of the Borrower or (iii) Other Permitted Debt; provided that
such guaranty Obligations of Permitted Subordinated Debt are unsecured and
subordinated on the same terms as the Obligations of the Borrower in respect of
such Permitted Subordinated Debt are subordinated;

 

(f)                                    the Existing Debt and any Debt extending the maturity of, or refunding or
refinancing, in whole or in part, any Existing Debt; provided that the
terms of any such extending, refunding or refinancing Debt, and of any
agreement entered into and of any instrument issued in connection therewith,
are not prohibited by the Loan Documents; provided  further that
the principal amount of such Existing Debt shall not be increased above the
principal amount thereof outstanding immediately prior to such extension,
refunding or refinancing plus the amount of fees and expenses incurred in
connection with such extension, refunding or refinancing, and the direct and
contingent obligors therefor shall not be changed, as a result of or in
connection with such extension, refunding or refinancing;

 

(g)                                 in the case of Accuride Canada only, Debt incurred on the Closing Date in
the form of an intercompany loan made by the Borrower, the proceeds of which
are to be used to repay outstanding obligations of Accuride Canada under the
Existing Credit Agreement, provided that the conditions in the proviso to Section 6.02(p) are
satisfied;

 

(h)                                 Debt secured by Liens permitted by Section 6.01(d) and
Capitalized Leases not to exceed an aggregate principal amount equal to
$15,000,000 at any time outstanding;

 

(i)                                     Debt in respect of Hedge Agreements incurred in the ordinary course of
business and providing protection to the Borrower and its Subsidiaries against
fluctuations in currency values or commodity prices in connection with the
Borrower’s or its Subsidiaries’ operations, in either case; provided
that such Hedge Agreements are bona fide
hedging activities and are not entered into for speculative purposes;

 

(j)                                     in the case of any Foreign Subsidiary only,  Debt in an aggregate principal amount, when
aggregated with any Debt incurred by all other Foreign Subsidiaries pursuant to
this clause (j), not to exceed $10,000,000 at any time outstanding;

 

(k)                                  Debt consisting of an undertaking by the Borrower to guaranty the
obligations of Foreign Subsidiaries  with
respect to Debt in an aggregate principal amount not to exceed the amount of
Debt permitted to be incurred by such Foreign Subsidiaries pursuant to Section 6.02(j);

 

111

 

(l)                                     Debt consisting of promissory notes issued with respect to any repurchase
of capital stock (and/or options or warrants in respect thereof) permitted to
be purchased pursuant to Section 6.06(c) in an aggregate
principal amount not to exceed $1,000,000 during the term of the Facility; and

 

(m)                               endorsement of negotiable instruments for deposit or collection or
similar transactions in the ordinary course of business;

 

(n)                                 Debt consisting of guaranty Obligations in the ordinary course of
business of the obligations of suppliers, customers, franchisees and licensees
of the Borrower and its Subsidiaries;

 

(o)                                 Debt in respect of any bankers’ acceptance, letter of credit, warehouse
receipt or similar facilities entered into in the ordinary course of business;
and

 

(p)                                 (i) Debt owed by any Loan Party to any other Loan Party, (ii) Debt
owed by any non-Loan Party to any other non-Loan Party, (iii) Debt owed by
any Loan Party to any non-Loan Party and (iv) Debt owed to any Loan Party
by any non-Loan Party in an amount not exceeding the amount of any Investment
made pursuant to, and permitted under, Section 6.05(g) and/or Section 6.05(h),
provided that, (x) to the extent that the Administrative Agent
requires that an intercompany loan is evidenced by a promissory note, such
promissory note shall be in form and substance reasonably satisfactory to the
Administrative Agent, (y) each intercompany loan owed by a Loan Party to a
non-Loan Party shall be subject to subordination provisions or a subordination
agreement substantially in the form attached hereto as Exhibit P or
otherwise in form and substance reasonably satisfactory to the Administrative
Agent (such agreement, the “Subordination Agreement”), subordinating the
obligations of such Loan Party thereunder to the Obligations of such Loan Party
under this Agreement and the other Loan Documents and (z) each
intercompany loan owed to a Loan Party shall be pledged by that Loan Party as
security under the Collateral Documents;

 

(q)                                 Debt of any Person existing at the time such Person is merged into or
consolidated or amalgamated with the Borrower or any Subsidiary or becomes a
Subsidiary of the Borrower or any other Loan Party in accordance with the
provisions of Section 6.05(l); provided that (x) such
Debt was not incurred in contemplation of such merger, consolidation,
amalgamation or investment and (y) the aggregate principal amount of all
Debt incurred under this clause (q) shall in no event exceed $10,000,000
in the aggregate at any time outstanding;

 

(r)                                    Debt of any Person acquired pursuant to a Permitted Acquisition (or Debt
assumed at the time of a Permitted Acquisition) (any such Debt, “Permitted
Acquired Debt”), provided that (x) neither the Borrower nor any
Subsidiary which consummated such Permitted Acquisition is liable for such
Debt, (y) such Debt was not incurred in connection with, or in
anticipation or contemplation of, such Permitted Acquisition and (z) Payment
Conditions are satisfied both before and after giving effect to the incurrence
of such Debt;

 

112

 

(s)                                  other Debt outstanding in an aggregate principal amount not to exceed
$20,000,000 at any time outstanding (such Debt incurred pursuant to this clause
(s), “Other Permitted Debt”); and

 

(t)                                    Debt of any Person incurred in order to finance a Permitted Acquisition
so long as the Payment Conditions are satisfied both before and after giving
effect to the incurrence of such Debt.

 

Section 6.03 
Mergers, Etc.  Merge into or consolidate or amalgamate with
any Person or permit any Person to merge into or consolidate or amalgamate with
it, or permit any of its Subsidiaries to do so, except that:

 

(a)                                  any Subsidiary of the Borrower may merge into or amalgamate with or
consolidate with any other Subsidiary of the Borrower; provided that, in
the case of any such merger, amalgamation or consolidation involving a
Subsidiary which is a Loan Party, the Person formed by such merger or
consolidation or the amalgamated entity shall be a Loan Party;

 

(b)                                 any Subsidiary of the Borrower may merge into or amalgamate with or
consolidate with the Borrower; provided that such Subsidiary shall have
no Debt, other than Debt permitted to be incurred by the Borrower under Section 6.02
and provided  further the Borrower shall be the surviving entity
in any such merger or consolidation;

 

(c)                                  Permitted Acquisitions may be consummated in accordance with Section 5.19;
and

 

(d)                                 in connection with any Investment permitted under Section 6.05,
the Borrower or any Loan Party may merge into or amalgamate with or consolidate
with any other Person or permit any other Person to merge into or amalgamate
with or consolidate with it; provided that (w) in the case of any
such merger, amalgamation or consolidation involving a Loan Party, the Person
surviving such merger, amalgamation or consolidation shall be the Borrower or a
Loan Party, as the case may be, or shall assume all obligations of the Borrower
or such Loan Party, as the case may be, under the Loan Documents in a manner
reasonably satisfactory to the Administrative Agent, (x) such merger,
amalgamation or consolidation shall not result in a Change of Control, (y) immediately
after such transaction no Event of Default or Default exists and (z) the
Person surviving such merger or consolidation or the amalgamated entity shall
have no Debt other than Debt permitted to be incurred under Section 6.02.

 

Section 6.04 
Sales, Etc., of Assets.  Sell, lease, transfer or otherwise dispose
of, or permit any of its Subsidiaries to sell, lease, transfer or otherwise
dispose of, any assets, or grant any option or other right to purchase, lease
or otherwise acquire any assets, except:

 

(a)                                  sales, transfers or other dispositions of used or surplus equipment,
vehicles, inventory or other assets in the ordinary course of its business;

 

(b)                                 sales or contributions of equipment or other personal property or all or
part of any business to Subsidiaries; provided that (x) in the case
of any transfer to a

 

113

 

Subsidiary
that is a Loan Party, any security interests granted to the Security Agent for
the benefit of the Secured Parties pursuant to the Collateral Documents in the
assets so transferred shall remain in full force and effect and perfected (to
at least the same extent as in effect immediately prior to such transfer) and
all actions required to maintain such perfected status have been taken, (y) that
the aggregate fair market value of the assets so sold or contributed to Foreign
Subsidiaries by the Borrower or any Domestic Subsidiary (determined, in each
case, at the time of such sale or contribution) does not exceed $5,000,000
during the term of this Agreement and (z) for such sales generating Net
Cash Proceeds in excess of $2,500,000 or for such sales or contributions
comprised of assets in the Borrowing Base, the Borrower delivers to the Administrative
Agent a pro forma Borrowing Base Certificate showing the effects of such
transaction on the Borrowing Base;

 

(c)                                  sales or contributions of equipment or other personal property or all or
part of any business to joint ventures; provided that (x) the aggregate
fair market value of the assets so sold or contributed to joint ventures by the
Borrower or any Domestic Subsidiary (determined, in each case, at the time of
such sale or contribution) does not exceed $5,000,000 during the term of this
Agreement and (y) for such sales generating Net Cash Proceeds in excess of
$2,500,000 or for sales or contributions comprised of assets in the Borrowing
Base, the Borrower delivers to the Administrative Agent a pro forma Borrowing
Base Certificate showing the effects of such transaction on the Borrowing Base;

 

(d)                                 any lease (as lessee) or license (as licensee) of real or personal
property (so long as any such lease or license does not create a Capitalized
Lease except to the extent permitted by Section 6.02(h));

 

(e)                                  any grant of any licenses, sublicenses, leases or subleases to other
Persons not materially interfering with the conduct of the business of the
Borrower or any of its Subsidiaries, in each case so long as no such grant
otherwise affects the Security Agent’s security interest in the asset or
property subject thereto;

 

(f)                                    any liquidation or other disposal of Cash Equivalents in the ordinary
course of business, in each case for cash at fair market value; and

 

(g)                                 sales of assets for fair value in an aggregate amount not to exceed
$50,000,000 during the term of this Agreement; provided that (x) immediately
before and after giving effect to such sale, no Default shall have occurred and
be continuing or would result therefrom and (y) no sale or other
disposition of assets shall be permitted by this clause (g) unless such
disposition is for at least 75% cash consideration; provided that any
liabilities (as shown on the Borrower’s or any Subsidiary’s most recent balance
sheet or in the footnotes thereto) of the Borrower or such Subsidiary, other
than liabilities that are by their terms subordinated to the Obligations under
this Agreement, that are assumed by the purchaser of such assets and for which
the Borrower and each other Loan Party have been validly released by all
creditors in writing shall be deemed to be cash for purposes of this clause (g) and
for no other purpose.

 

114

 

Section 6.05 
Investments in Other Persons.  Make or hold, or permit any of its Subsidiaries
to make or hold, any Investment in any Person other than:

 

(a)                                  Investments existing on the Closing Date and described on Schedule 6.05(a),
and any extensions, renewals or reinvestments thereof, so long as the aggregate
amount of all Investments pursuant to this clause (measured by the amount
actually invested) is not increased at any time above the amount of such
Investments existing on the Closing Date;

 

(b)                                 loans and advances to employees in the ordinary course of business
of  the Borrower and its Subsidiaries as
presently conducted in an aggregate amount not to exceed $2,000,000 at any time
outstanding and other loans and advances to employees solely for the purchase
of capital stock of the Borrower not to exceed $2,500,000 at any time
outstanding, provided that each such loan and advance shall be evidenced by a
promissory note which shall be pledged to the Security Agent for the benefit of
the Secured Parties pursuant to the Guarantee and Collateral Agreement as
security for the Obligations of such pledgor thereunder;

 

(c)                                  Investments by the Borrower and its Subsidiaries in Cash Equivalents;

 

(d)                                 Investments by the Borrower in Hedge Agreements permitted under Section 6.02(i);

 

(e)                                  Investments consisting of intercompany Debt permitted under Section 6.02(g) and
Section 6.02(p);

 

(f)                                    Investments received in connection with the bankruptcy or reorganization
of suppliers or customers and in settlement of delinquent obligations of, and
other disputes with, customers arising in the ordinary course of business;

 

(g)                                 Investments in a Foreign Subsidiary, provided that (x) immediately
before and after giving effect thereto, the Payment Conditions are satisfied
and (y) the aggregate amount of all such Investments in such Foreign
Subsidiary as permitted by this clause (g) and made after the Closing
Date, when aggregated with all other Investments in any other Foreign
Subsidiaries, shall not exceed $20,000,000 in the aggregate at any time
outstanding plus the aggregate fair market of assets contributed to such
Foreign Subsidiaries as permitted by Section 6.04(b);

 

(h)                                 Investments to the extent that payment for such Investment is made solely
with Equity Interests (other than Disqualified Equity Interests) of the
Borrower;

 

(i)                                     Investments constituting non-cash proceeds of sales, transfers and other
dispositions of assets permitted pursuant to Section 6.04(g);

 

(j)                                     Investments that constitute a Permitted Acquisition consummated in
accordance with Section 5.19;

 

115

 

(k)                                  in addition to the investments permitted by clauses (a) through (j) and
(l) of this Section 6.05, the Borrower and its Subsidiaries
may make additional Investments to or in another Person in an aggregate amount
for all Investments made pursuant to this clause (k) (determined without
regard to any write-downs or write-offs thereof), net of cash repayments of
principal in the case of loans, sale proceeds in the case of Investments in the
form of debt instruments and cash equity returns (whether as a distribution, dividend,
redemption or sale) in the case of equity Investments, not to exceed
$5,000,000; and

 

(l)                                     in addition to the Investments permitted by clauses (a) through (k) of
this Section 6.05, additional Investments by the Borrower and the
other Loan Parties not otherwise permitted by this Section 6.05 so
long as the Payment Conditions would be satisfied both before and after giving
effect to such additional Investments and any other Investments permitted under
this Section 6.05, in aggregate; provided that to the extent
any Investment made pursuant to this clause (l) would constitute a “Permitted
Acquisition”, the requirements of Section 5.l9 must be met at the
time of such Investment.

 

Section 6.06 
Dividends, Etc.  In the case only of the Borrower, declare or
pay any dividends, purchase, redeem, retire, defease or otherwise acquire for
value any of its capital stock or any warrants, rights or options to acquire
such capital stock, now or hereafter outstanding, return any capital to its
stockholders as such, make any distribution of assets, capital stock, warrants,
rights, options, obligations or securities to its stockholders as such, or
permit any of its Subsidiaries to purchase, redeem, retire, defease or
otherwise acquire for value any capital stock of the Borrower or any warrants,
rights or options to acquire such capital stock or to issue or sell any such
capital stock or any warrants, rights or options to acquire such capital stock,
except that, so long as no Default shall have occurred and be continuing at the
time of any action described below or would result therefrom, (a) the
Borrower may declare and pay dividends and distributions payable only in Equity
Interests (other than Disqualified Equity Interests) of the Borrower, (b) the
Borrower may redeem in whole or in part any capital stock of the Borrower for
another class of capital stock or rights to acquire capital stock of the
Borrower or with proceeds from substantially concurrent equity contributions or
issuances of new shares of capital stock; provided that such other class
of capital stock contains terms and provisions at least as advantageous to the
Lender Parties as those contained in the capital stock redeemed thereby, (c) the
Borrower may repurchase shares of its capital stock (and/or options or warrants
in respect thereof) held by its officers, directors and employees, so long as
such repurchase is pursuant to, and in accordance with the terms of any
management and/or employee stock plans, stock subscription agreements or
shareholder agreements; provided that aggregate amount of cash paid
(including cash paid on promissory notes issued pursuant to Section 6.02(l))
in respect of any such repurchases pursuant to this clause (c) does not
exceed $500,000 in any calendar year (or such greater amount as the
Administrative Agent may agree), and (d) the Borrower may make cash
payments in lieu of issuing fractional shares in connection with any exchange
of any Subordinated Debt for preferred or common stock of the Borrower, provided,
however, that the aggregate payment under this clause (d) does not
exceed in any calendar year $5,000,000 (or such greater amount as the
Administrative Agent may agree); provided  further that such
$5,000,000 amount (or such greater amount agreed to by the Administrative
Agent) in any calendar year may be increased by an amount not to exceed (i) the
cash proceeds from the sale of

 

116

 

capital stock of the Borrower to members of
management, directors or consultants (or their heirs or estates) of Borrower
and its Subsidiaries that occurs after the date hereof plus (ii) the
cash proceeds of key man life insurance policies received by the Borrower and
any of its Subsidiaries after the date hereof. 
Notwithstanding anything herein to the contrary, cancellation of Debt
owing to the Borrower from members of management in connection with a purchase
of capital stock of the Borrower by such members of management (in an amount
not less than such Debt and financed from a source other than such Debt) will
not be deemed to constitute a payment in violation of this Section 6.06
or any other provision hereof. 
Notwithstanding the foregoing, the Borrower may declare and pay cash
dividends and make other distributions so long as the Payment Conditions are
satisfied both before and after giving effect to such payment.

 

Section 6.07 
Prepayments, Etc., of Debt.  Prepay, redeem, purchase, defease or
otherwise satisfy prior to the scheduled maturity thereof in any manner, or
make any payment in violation of any subordination terms of, any Existing
Senior Convertible Note, any Senior Secured Note, or any Permitted Subordinated
Debt, other than (a) any prepayment of Debt owed by any Loan Party to any
other Loan Party, (b) any prepayment or redemption of outstanding Senior
Secured Notes as required by the Senior Secured Notes Documents as a result of
any asset sale, recovery event, change of control or similar event and to the
extent permitted by this Agreement and/or the Intercreditor Agreement, (c) any
prepayment or redemption of outstanding Senior Secured Notes in full pursuant
to an issuance of Permitted Refinancing Debt relating thereto, (d) any
exchange of Permitted Subordinated Debt (including exchanges or conversions of
Existing Senior Convertible Notes) for preferred or common stock of the
Borrower, (e) cash payments in lieu of issuing fractional shares in
connection with any exchange of Permitted Subordinated Debt (including
exchanges or conversions of Existing Senior Convertible Notes) for preferred or
common stock of the Borrower and (f) prepayments, redemptions, defeasances
and other satisfactions of Permitted Subordinated Debt with the proceeds of
other Permitted Subordinated Debt or of Equity Interests (other than
Disqualified Equity Interests) of the Borrower, provided, however,
that (i) in the case of the preceding clause (b), such exchange shall not
result in any Change of Control, (ii) in the case of the preceding clause
(c), (d) or (e), such exchange (x) is made in satisfaction of any
Obligations owed by the Borrower under, or in connection with, such Permitted
Subordinated Debt and (y) shall not result in any Change of Control and (iii) in
the case of the preceding clause (d), such cash payment does not exceed in any
calendar year $2,500,000; provided  further that such $2,500,000
amount in any calendar year may be increased by an amount not to exceed (x) the
cash proceeds from the sale of capital stock of the Borrower to members of
management, directors or consultants (or their heirs or estates) of Borrower
and its Subsidiaries that occurs after the date hereof plus (y) the
cash proceeds of key man life insurance policies received by the Borrower and
any of its Subsidiaries after the date hereof. 
The foregoing will not restrict any other prepayment, repurchase,
redemption, defeasance or other satisfaction of Debt so long as the Payment
Conditions are satisfied both before and after giving effect to such
prepayment, repurchase, redemptions, defeasance or other satisfaction, as the
case may be.  Notwithstanding anything
herein to the contrary, cancellation of Debt owing to the Borrower from members
of management in connection with a purchase of capital stock of the Borrower by
such members of management (in an amount not less than such Debt and financed
from a source other than such Debt) will not be deemed to constitute a payment
in violation of this Section 6.07 or any other provision hereof.

 

117

 

Section 6.08 
Amendment, Etc. of Documents.  (a) Amend, modify or change (or permit
any of Subsidiary to amend, modify or change) its certificate or articles of
incorporation (including, without limitation, by the filing or modification of
any certificate or articles of designation), certificate of formation, limited
liability company agreement or by-laws (or the equivalent organizational
documents), as applicable, or any agreement entered into by it with respect to
its capital stock or other Equity Interests (including any Disqualified Equity
Interest), or enter into any new agreement with respect to its capital stock or
other Equity Interests, unless such amendment, modification, change or other
action contemplated by this clause (a) could not reasonably be expected to
be adverse to the interests of the Lender Parties in any material respect and
the terms of any such amendment, modification, change or other action will not
violate any of the other provisions of this Agreement or any other Loan
Document, (b) amend or otherwise change, or consent to any amendment or
change of, any of the terms of any Existing Senior Convertible Notes Document
or any Subordinated Debt Document, in each case, in a manner that would (i) be
adverse to the Lender Parties in any material respect or (ii) result in
such Subordinated Debt ceasing to qualify as Permitted Subordinated Debt as
provided for in the definition thereof, or permit any of its Subsidiaries to do
any of the foregoing, (c) amend or otherwise change or consent to any
amendment or change of any of the terms of any Senior Secured Notes Document in
a manner which is adverse to the interests of the Lenders in any material
respect or in a manner which is prohibited by the terms of the Intercreditor
Agreement, (d) designate any Debt (other than the Obligations of the Loan
Parties pursuant to the Loan Documents and the Obligations of the Senior
Secured Noteholders pursuant to the Senior Secured Notes Documents) as “Designated
Senior Indebtedness” (or any other defined term having a similar meaning) for
purposes of the Existing Senior Convertible Notes Indenture or any other
Subordinated Debt Document.

 

Section 6.09 
Partnerships, Etc.  Become a general partner in any general or
limited partnership or joint venture which is not a limited liability entity,
or permit any of its Subsidiaries to do so, other than any Subsidiary the sole
assets of which consist of its interest in such partnership or joint venture.

 

Section 6.10 
Negative Pledge. 
Enter into or suffer to exist, or permit any of its Subsidiaries to
enter into or suffer to exist, any agreement prohibiting or conditioning the
creation or assumption of any Lien upon any of its property or assets to
securing the Obligations to the Secured Parties other than (a) in favor of
the Secured Parties or (b) in connection with (i) any Existing Debt, (ii) any
Permitted Subordinated Debt or (iii) the Senior Secured Notes or (c) customary
restrictions in Subordinated Debt Documents requiring equal and ratable liens
if other Permitted Subordinated Debt is secured, provided that the
foregoing (x) shall not apply to customary restrictions and conditions
contained in agreements relating to the sale of a Subsidiary pending such sale
so long as such restrictions and conditions only apply to the Subsidiary that
is to be sold and such sale is permitted hereunder and (y) shall not apply
to restrictions or conditions imposed by any agreement relating to secured Debt
permitted hereunder if such restrictions or conditions apply only to the
property or assets securing such Debt.

 

Section 6.11 
No Additional Deposit Accounts, Etc.  With respect to the Loan Parties, open,
maintain or otherwise have, any checking, savings, deposit, securities or other
accounts at any bank or other financial institution where cash or Cash
Equivalents are or may be deposited or maintained with any Person, other than (a) the
Core Concentration Accounts set

 

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forth on Part A of Schedule 6.11, (b) the
Lockbox Accounts set forth on Part B of Schedule 6.11, (c) the
Disbursement Accounts set forth on Part C of Schedule 6.11 and (d) the
Excluded Accounts set forth on Part D of Schedule 6.11; provided
that any Co-Borrower or any other Loan Party may open a new Core Concentration
Account, Lockbox Account, Disbursement Account, Excluded Accounts or other
Deposit Accounts not set forth in such Schedule 6.11, so long as (i) prior
to opening any such account (other than Excluded Accounts) (A) the Funds
Administrator shall give the Administrative Agent at least ten (10) days’
prior notice of any such account to be opened, (B) the Funds Administrator
has delivered an updated Schedule 6.11 to the Administrative Agent
listing such new account and (C) the financial institution with which such
account is opened, together with the Funds Administrator or the other Loan
Party that has opened such account and the Security Agent, have executed and
delivered to the Security Agent a Cash Management Control Agreement reasonably
acceptable to the Security Agent and (ii) in respect of any account that
is an Excluded Account, the Borrower notifies the Administrative Agent and the
Security Agent that it has opened such Excluded Account.

 

ARTICLE VII

 

Reporting
Requirements

 

Section 7 
Reporting Requirements.  So
long as any Advance shall remain unpaid, any Letter of Credit shall be
outstanding or any Lender Party shall have any Commitment hereunder, the Funds
Administrator will furnish to the Administrative Agent for distribution to the
Co-Collateral Agents and the Lender Parties:

 

Section 7.01 
Annual Financials.  As soon as available and in any event within
ninety (90) days after the end of each Fiscal Year, a Consolidated balance
sheet of the Borrower and its Subsidiaries as of the end of such Fiscal Year
and the related Consolidated statements of income and cash flow for such Fiscal
Year setting forth in each case in comparative form the corresponding figures
for the previous Fiscal Year, accompanied by an opinion which shall be
unqualified as to the scope of the audit and as to the going concern status of
the Borrower and its Subsidiaries, taken as a whole, of Deloitte &
Touche LLP or other independent public accountants of recognized standing
reasonably acceptable to the Administrative Agent, together with:

 

(a)                                  management’s discussion and analysis of the important operational and
financial developments during such Fiscal Year,

 

(b)                                 a certificate of such independent public accountants to the Lender
Parties stating that in the course of the regular audit of the business of the
Borrower and its Subsidiaries which audit was conducted by such independent
public accountants in accordance with generally accepted auditing standards,
such independent public accountants obtained no knowledge that a Default has
occurred and is continuing, or if, in the opinion of such independent public
accountants, a Default or Event of Default has occurred and is continuing, a
statement as to the nature thereof,

 

119

 

(c)                                  if applicable, a schedule in form reasonably satisfactory to the Administrative
Agent of the computations used by the Borrower in determining, as of the end of
such Fiscal Year, compliance with the covenant contained in Section 8
(including, for purposes of determining compliance with Section 8,
the aggregate amount of Restructuring Charges incurred as of the end of such
Fiscal Year); provided that in the event of any change in GAAP used in
the preparation of such financial statements, the Borrower shall also provide,
if required pursuant to Section 1.03, a statement of reconciliation
which reconciles such financial statements to GAAP used to prepare the
financial statements referred to in Section 4.01(f)(i), and

 

(d)                                 a certificate of the chief financial officer of the Borrower stating
that no Default has occurred and is continuing or, if a default has occurred
and is continuing, a statement as to the nature thereof and the action that the
Borrower and its Subsidiaries have taken and propose to take with respect
thereto.

 

Section 7.02 
Quarterly Financials.  As soon as available and in any event within
forty-five (45) days after the end of each of the first three Fiscal Quarters
of each Fiscal Year, a Consolidated balance sheet of the Borrower and its
Subsidiaries as of the end of such Fiscal Quarter and the related Consolidated
statements of income and cash flow for the period commencing at the end of the
previous Fiscal Quarter and ending with the end of such Fiscal Quarter and for
the period commencing at the end of the previous Fiscal Year and ending with
the end of such Fiscal Quarter, setting forth in each case in comparative form
the corresponding figures for the corresponding period of (a) the
preceding Fiscal Year, and (b) the applicable annual forecast delivered
pursuant to Section 7.05, all in reasonable detail and duly
certified (subject to normal year-end and audit adjustments and the absence of
footnotes) by the chief financial officer of the Borrower as fairly presenting
in all material respects in accordance with GAAP the financial position or
results of operations of the Borrower and its Subsidiaries for such Fiscal
Quarter, together with:

 

(i)                                     a certificate of such officer stating that no Default has occurred and is
continuing or, if a Default has occurred and is continuing, a statement as to
the nature thereof and the action that the Borrower and its Subsidiaries have
taken and propose to take with respect thereto,

 

(ii)                                  management’s discussion and analysis of the important operational and
financial developments during such Fiscal Quarter,

 

(iii)                               if applicable, a schedule in form reasonably satisfactory to the
Administrative Agent of the computations used by the Borrower in determining
compliance with the covenant contained in Section 8; provided
that in the event of any change in GAAP used in the preparation of such
financial statements, the Borrower shall also provide, if required pursuant to Section 1.03,
a statement of reconciliation which reconciles such financial statements to
GAAP used to prepare the financial statements referred to in Section 4.01(f)(i);
and

 

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(iv)                              a certificate of such officer attaching a schedule in form reasonably
satisfactory to the Co-Collateral Agents setting forth all existing locations
at which any assets included in the Borrowing Base are located.

 

Section 7.03 
Monthly Financials. As soon as available and
in any event within thirty (30) days after the end of each calendar month
ending (a) during the initial 12-month period ended on the first
anniversary of the Closing Date or (b) during a Compliance Period (in each
case excluding the last calendar month in any Fiscal Quarter during any such
period), a Consolidated management internally generated balance sheet of the
Borrower and its Subsidiaries as of the end of such month and the related
Consolidated statements of income and cash flow for the period commencing at
the end of the previous month and ending with the end of such month, setting
forth in comparative form the corresponding figures for the corresponding
period of (i) the preceding Fiscal Year, and (ii) the applicable
annual forecast delivered pursuant to Section 7.05, all in
reasonable detail and duly certified (subject to normal year-end and audit
adjustments and the absence of footnotes) by the chief financial officer of the
Borrower as being prepared on a consistent basis with its accounting and
bookkeeping practices and fairly presenting in all material respects the
financial position or results of operations of the Borrower and its
Subsidiaries for such month.

 

Section 7.04 
Accounts Information.  The following information (the “Accounts
Information”):  at any time upon the
Administrative Agent’s request, on the date of occurrence of any Compliance
Period or on the date of occurrence of any Event of Default and, thereafter, on
the fifteenth (15th) day of each month while such Compliance Period or Event of
Default is continuing, summary accounts payable and accounts receivable aging
reports (including the names and, if reasonably requested from time to time by
the Co-Collateral Agents, addresses of all account debtors, and with such
accounts receivable and accounts payable divided into such time intervals as
the Co-Collateral Agents may reasonably request) of the Co-Borrowers and any
Subsidiary of the Co-Borrowers.

 

Section 7.05 
Annual Forecasts.  As soon as available and in any event no
later than sixty (60) days after the beginning of each Fiscal Year, forecasts
prepared by management of the Borrower, in reasonable detail and in form
customarily prepared by management of the Borrower for its internal use and
setting forth an explanation for the principal assumptions on which such
forecasts were based, of balance sheets, income statements and cash flow
statements on a quarterly basis for the Fiscal Year following such Fiscal Year
then ended and on an annual basis for each of the four Fiscal Years thereafter.

 

Section 7.06 
ERISA.  Promptly
after any Loan Party or any ERISA Affiliate obtains knowledge, or has reason to
know, of the occurrence of any of the following events that individually or in
the aggregate (including in the aggregate such events previously disclosed or
exempt from disclosure hereunder, to the extent the liability therefor remains
outstanding), would be reasonably likely to have a Material Adverse Effect, a
certificate of a Responsible Officer of the Borrower setting forth details as
to such occurrence and the action, if any, that any Loan Party or any ERISA
Affiliate is required or proposes to take, together with any notices (required,
proposed or otherwise) given to or filed with or by or received by any Loan Party,
any ERISA Affiliate, the PBGC, a Plan participant (other than notices relating
to an individual participant’s benefits) or 
the Plan administrator with respect thereto:  that a Reportable Event 

 

121

 

has occurred; that a Plan has failed to satisfy the
minimum funding standard, within the meaning of Section 412 of the
Internal Revenue Code or Section 302 of ERISA, or an application has been
or is to be made to the Secretary of the Treasury for a waiver or modification
of the minimum funding standard (including any required installment payments)
or an extension of any amortization period under Section 412 of the
Internal Revenue Code with respect to a Plan; that a Plan has been or is to be
terminated under Title IV of ERISA (including the giving of written notice
thereof); that a Plan has an Unfunded Current Liability; that a Multiemployer
Plan is in reorganization, liquidation or in endangered or critical status
within the meaning of Section 432 of the Internal Revenue Code or Section 305
of ERISA; that proceedings are reasonably expected to be or have been
instituted to terminate a Plan (including the giving of written notice
thereof); that a proceeding has been instituted by the PBGC against any Loan Party
or any ERISA Affiliate pursuant to Section 515 of ERISA to collect a
delinquent contribution to a Multiemployer Plan; that the PBGC has notified any
Loan Party or any ERISA Affiliate of its intention to appoint a trustee to
administer any Plan; that any Loan Party or any ERISA Affiliate has failed to
make a required installment or other payment pursuant to Section 412 of
the Internal Revenue Code with respect to a Plan; that any Loan Party or any
ERISA Affiliate has incurred or is reasonably expected to incur (or has been
notified in writing that it will incur) any liability (including any contingent
or secondary liability) to or  on account
of a Plan pursuant to Section 515, 4062, 4063, 4064 or 4069 of ERISA or Section 4971
or 4975 or the Internal Revenue Code , or that any Loan Party has incurred or
is reasonably expected to incur (or has been notified in writing that it will
incur) any liability (including any contingent or secondary liability) to or on
account of a Plan pursuant to Section 409, 502(i) or 502(l) of
ERISA or Section 436(f) of the Internal Revenue Code; or that any
Loan Party or any ERISA Affiliate has incurred or is reasonably expected to
incur (or has been notified in writing that it will incur) any liability
(including any contingent or secondary liability) to or on account of any
Multiemployer Plan pursuant to Sections 4201, 4204 or 4212 of ERISA.

 

Section 7.07 
Environmental Conditions.  Promptly after obtaining knowledge of any one
or more of the following environmental matters, unless such environmental
matters would not reasonably be expected to result in a Material Adverse
Effect:

 

(a)                                  notice of any pending or threatened Environmental Action against the
Borrower or any of its Subsidiaries or any Real Estate (as defined below);

 

(b)                                 notice of any condition or occurrence on any Real Estate that (x) results
in noncompliance by the Borrower or any of its Subsidiaries with any applicable
Environmental Law or (y) could reasonably be anticipated to form the basis
of an Environmental Action against the Borrower or any of its Subsidiaries or
any Real Estate;

 

(c)                                  notice of any condition or occurrence on any Real Estate that could
reasonably be anticipated to cause such Real Estate to be subject to any
material restrictions on the ownership, occupancy, current use or
transferability of such Real Estate under any Environmental Law; and

 

(d)                                 notice of the taking of any removal or remedial action in response to the
actual or alleged presence of any Hazardous Material on any Real Estate.

 

122

 

All such notices shall describe in reasonable detail
the nature of the claim, investigation, condition, occurrence or removal or
remedial action and the Borrower’s response thereto.  The term “Real Estate” as used in this
Section shall mean land, buildings and improvements owned or leased by the
Borrower or any of its Subsidiaries, but excluding all operating fixtures and
equipment, whether or not incorporated into improvements.

 

Section 7.08 
Default or Litigation Notice.  Promptly upon any Responsible Officer of the
Borrower or any of its Subsidiaries obtaining knowledge thereof, notice of (a) the
commencement of a Dominion Period or a Compliance Period, (b) the
occurrence of any event that constitutes a Default or an Event of Default,
which notice shall specify the nature thereof, the period of existence thereof
and what action the Funds Administrator proposes to take with respect thereto,
and (c) any litigation or governmental proceeding pending against the Borrower
or any of its Subsidiaries that could reasonably be expected to result in a
Material Adverse Effect.

 

Section 7.09 
Amendment of Documents.  Promptly after the same shall become
effective, copies of any amendment or supplement to, or other modification of,
any Senior Secured Notes Document, any Subordinated Debt Document or any Other
Permitted Debt Document.

 

Section 7.10 
Management Letters.  Promptly after the Borrower’s or any of its
Subsidiaries’ receipt thereof, a copy of any “management letter” received from
its independent public accountants and management’s response thereto.

 

Section 7.11 
Securities Reports/Other Information.  Promptly after the sending or filing thereof,
copies of all proxy statements, financial statements and reports that any Loan
Party or any of its Subsidiaries sends to its stockholders or the trustee
and/or the holders of the Senior Secured Notes or the Existing Senior
Convertible Notes, and copies of all regular, periodic and special reports, and
all registration statements or prospectuses, that any Loan Party or any of its
Subsidiaries files with the Securities and Exchange Commission or any
governmental authority that may be substituted therefor, or with any national,
state or provincial securities regulator (in each case to the extent not
theretofore delivered to the Lender Parties pursuant to this Agreement).

 

Section 7.12 
Borrowing Base Certificate.  (a) On the Closing Date, the Initial
Borrowing Base Certificate and (b) thereafter (i) by 9:00 A.M.
(New York City time) on the twentieth (20th) day of each calendar month (or
more frequently, but not more frequently than once per week, as either the
Co-Collateral Agents may reasonably request or as the Borrower may elect, as
the case may be), (ii) at any time during a Compliance Period, by 9:00 A.M.
(New York City time) on the third (3rd) Business Day of the next succeeding
calendar week after the week in which such Compliance Period commences and the
third (3rd) Business Day of the next succeeding calendar week after each week
thereafter while such Compliance Period continues, (iii) on the date on
which any Collateral included in the Borrowing Base with a value in excess of
$5,000,000 is sold or disposed of in any non-ordinary course of business sale
or disposition to any Person other than a Loan Party concurrently with such
sale or disposal and (iv) during the continuance of an Event of Default,
as frequently as the Co-Collateral Agents may request, in each case a
certificate substantially in the form of Exhibit J setting forth
the Borrowing Base

 

123

 

(with supporting calculations) in form and substance
reasonably satisfactory to the Co-Collateral Agents, appropriately completed
(with such modifications as to format and presentation as may be reasonably
requested by the Co-Collateral Agents upon five (5) Business Days’ notice)
together with all attachments and supporting documentation as contemplated
thereby and certified as true, correct and complete in all material respects by
a Responsible Officer of the Borrower (each, a “Bring Down Borrowing Base
Certificate”).  The Borrowing Base
Certificates shall be prepared (1) as of June 30, 2010, in the case
of the Initial Borrowing Base Certificate, (2) in the case of the Bring
Down Borrowing Base Certificate to be delivered monthly, as of the last
Business Day of the preceding month (or, in the case of any more frequent
delivery of a Bring Down Borrowing Base Certificate, a subsequent date no more
than five (5) Business Days prior to the date of such Bring Down Borrowing
Base Certificate), (3) in the case of the Bring Down Borrowing Base
Certificate to be delivered every week, as of the last Business Day of the
preceding week, (4) in the case of any Bring Down Borrowing Base Certificate
to be delivered at the request of the Co-Collateral Agents or at the election
of the Borrower, as of the Business Day specified in the request (provided
that such date shall be no more than five (5) Business Days prior to the
date of such Bring Down Borrowing Base Certificate) and (5) in the case of
any Bring Down Borrowing Base Certificate to be delivered after any
non-ordinary course of business sale or disposal of Collateral included in the
Borrowing Base in excess of $5,000,000, as of the last Business Day of the week
in which such sale or disposal is completed. 
Each such Borrowing Base Certificate shall include such other supporting
information as may be reasonably requested from time to time by the Co-Collateral
Agents including information concerning the amount, composition and manner of
calculation of the Borrowing Base.

 

Section 7.13 
Damage of Collateral.  The Borrower shall promptly notify the
Administrative Agent, the Co-Collateral Agents and the Security Agent if any
material portion of the ABL Priority Collateral is damaged or destroyed.

 

Section 7.14 
Additional Information.  Promptly following any request therefor, such
other information regarding the operations, business affairs and financial
condition of the Borrower or any of its Subsidiaries, or compliance with the
terms of any Loan Document, as the Administrative Agent, the Co-Collateral
Agents and the Security Agent (each on behalf of itself or any Lender) may
reasonably request.

 

Section 7.15 
Delivery of Documents.  Documents required to be delivered pursuant
to Article VII may be delivered electronically and if so delivered,
shall be deemed to have been delivered on the date (a) on which the
Borrower posts such documents, or provides a link thereto on the Borrower’s
website on the internet at accuridecorp.com, or (b) on which such
documents are posted on the Borrower’s behalf on an internet or intranet
website, if any, to which each Lender Party, the Administrative Agent and the
Co-Collateral Agents have access (whether a commercial, third-party website or
whether sponsored by the Administrative Agent or any Co-Collateral Agent)
including, to the extent the Lender Parties, the Administrative Agent and the
Co-Collateral Agents have access thereto and such documents are available thereon,
the EDGAR database and sec.gov.  Except
for the Borrowing Base Certificates, the Administrative Agent shall have no
obligation to request the delivery of or to maintain copies of the documents
referred to above, and in any event shall have no responsibility to monitor
compliance by the Borrower with any such request for delivery, and each Lender
Party shall be solely responsible for requesting delivery to it or maintaining
its copies of such documents.

 

124

 

ARTICLE VIII

 

Financial
Covenant

 

Section 8 
Consolidated Fixed Charge Coverage Ratio.  During each Compliance Period, the Borrower
shall not permit (i) the Consolidated Fixed Charge Coverage Ratio for the
most recent Measurement Period ended prior to the beginning of such Compliance
Period for which financial statements are required to be delivered pursuant to Section 7.01
or 7.02 to be less than 1.10:1.00 or (ii) the Consolidated Fixed
Charge Coverage Ratio for any Measurement Period for which financial statements
are  required to be delivered pursuant to
Section 7.01 or 7.02 during such Compliance Period to be
less than 1.10:1.00.

 

ARTICLE IX

 

Events
of Default and Application of Funds

 

PART I

 

Events of Default

 

Section 9 
Events of Default.  If any
of the following events (“Events of Default”) shall occur and be
continuing:

 

Section 9.01 
Non-payment.  any
Co-Borrower shall (a) fail to pay any principal of any Advance owing by it
when the same shall become due and payable or (b) fail to pay any interest
on any Advance owing by it, or any fees payable pursuant to Section 2.08,
or any other amounts owing by it under any Loan Document, in each case with
respect to this clause (b) only within five days after the due date
thereof; or

 

Section 9.02 
Representations and Warranties.  any representation or warranty made by any
Loan Party in any Loan Document or any certificate delivered or required to be
delivered pursuant thereto shall prove to have been untrue in any material
respect on the date as of which made or deemed made; or

 

Section 9.03 
Specific Covenants.  any Loan Party shall default in the due
performance or observance by it of any term, covenant or agreement required to
be performed or observed by it contained in Section 2.14, 5.11,
5.15, 5.16, 5.19, 7.01, 7.02, 7.08, 7.12
or Articles VI or VIII; or

 

Section 9.04 
Other Defaults.  any
Loan Party shall default in the due performance or observance by it of any
other term, covenant or agreement contained in any Loan Document on its part to
be performed or observed if such failure shall remain unremedied for thirty
(30) days after written notice thereof shall have been given to the Funds
Administrator by the Administrative Agent or the Majority Lenders; or

 

Section 9.05 
Cross Default.  any
Loan Party or any of its Subsidiaries shall fail to pay any principal of,
premium or interest on or any other amount payable in respect of any Debt

 

125

 

that is outstanding in a principal amount of at
least $10,000,000 (or its equivalent in another currency) either individually
or in the aggregate (but excluding Debt outstanding hereunder) of such Loan
Party or such Subsidiary (as the case may be), when the same becomes due and
payable (whether by scheduled maturity, required prepayment, acceleration,
demand or otherwise), and such failure shall continue after the applicable
grace period, if any, specified in the agreement or instrument relating to such
Debt; or any other event shall occur or condition shall exist under any
agreement or instrument relating to any such Debt and shall continue after the
applicable grace period, if any, specified in such agreement or instrument, if
the effect of such event or condition is to accelerate, or to permit the
acceleration of, the maturity of such Debt or otherwise to cause, or to permit
the holder thereof to cause, such Debt to mature; or any such Debt shall be
declared to be due and payable or required to be prepaid or redeemed (other
than by a regularly scheduled required prepayment or redemption), purchased or
defeased, or an offer to prepay, redeem, purchase or defease such Debt shall be
required to be made other than in connection with a sale of assets permitted by
Section 6.04, in each case prior to the stated maturity thereof; or

 

Section 9.06 
Bankruptcy, Etc.  any Loan Party or any of its Subsidiaries
shall make a general assignment for the benefit of creditors; or any proceeding
shall be instituted by or against any Loan Party or any of its Subsidiaries
seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation,
winding up, reorganization, compromise, arrangement, adjustment, protection,
relief, or composition of it or its debts under any law (including, without
limitation, any corporate laws) relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a receiver, interim receiver, receiver and
manager, monitor, trustee, or other similar official for it or for any
substantial part of its property and, in the case of any such proceeding
instituted against it (but not instituted by it) that is being diligently
contested by it in good faith, either such proceeding shall remain undismissed
or unstayed for a period of sixty (60) days or any of the actions sought in
such proceeding (including, without limitation, the entry of an order for
relief against, or the appointment of a receiver, trustee, custodian or other
similar official for, it or any substantial part of its property) shall occur;
or any Loan Party or any of its Subsidiaries shall take any corporate action to
authorize any of the actions set forth above in this Section 9.06;
or

 

Section 9.07 
Judgments.  one or more
judgments or decrees shall be entered against the Borrower or any of its
Subsidiaries involving a liability of $10,000,000 or more in the aggregate for
all such judgments and decrees for the Borrower and its Subsidiaries (to the
extent not paid or fully covered by insurance provided by a carrier not
disputing coverage) and any such judgments or decrees shall remain unsatisfied,
unvacated, undischarged or unstayed or not bonded pending appeal for a period
of thirty (30) consecutive days following the entry thereof; or

 

Section 9.08 
Invalidity of Loan Documents.  any provision of any Loan Document after
delivery thereof pursuant to Sections 3.01 or 5.11 hereof shall
for any reason cease to be valid and binding on or enforceable against any Loan
Party to it, or any such Loan Party shall so state in writing or any of the
Loan Parties shall so assert in any pleading filed in any court; or

 

126

 

Section 9.09 
Collateral Documents.  any Collateral Document after delivery
thereof pursuant to Sections 3.01 or 5.11 hereof shall for any
reason (other than pursuant to the terms thereof) cease to create a valid and
perfected lien on and security interest in the 
Collateral purported to be covered thereby, superior to and prior to the
rights of all third Persons (except as provided for pursuant to the
Intercreditor Agreement and the Senior Secured Notes Documents and except as
otherwise permitted by Section 6.01), and subject to no other Liens
(except as permitted by Section 6.01); or

 

Section 9.10 
Intercreditor Agreement.  the Intercreditor Agreement or any provision
thereof shall cease to be in full force or effect (except in accordance with
its terms in all material respects), any parties thereto shall deny or
disaffirm their respective obligations thereunder or any parties thereto shall default
in the due performance or observance of any term, covenant or agreement on
their part to be performed or observed pursuant to the terms thereof; or

 

Section 9.11 
Change of Control.  any Change of Control shall occur; or

 

Section 9.12 
ERISA.  (a) a
Reportable Event shall occur; (b) any Plan is or shall have been
terminated by the PBGC or is the subject of termination proceedings by the PBGC
under ERISA (including the giving of written notice thereof); an event shall
have occurred or a condition shall exist in either case entitling the PBGC to
terminate any Plan or to appoint a trustee to administer any Plan (including
the giving of written notice thereof); (c) any Plan shall fail to satisfy
the minimum funding standards of Section 412 or 430 of the Code or
Sections 302 and 303 of ERISA or a waiver of such standard or extension of any
amortization period is sought or granted under Section 412 of the Internal
Revenue Code; (d) any Loan Party or any ERISA Affiliate has incurred or is
likely to incur a liability to or on account of a Plan under Section 515,
4062, 4063, 4064 or 4069 of ERISA or Section 4971 or 4975 of the Internal
Revenue Code (including the giving of written notice thereof), or that any Loan
Party has incurred or is likely to incur a liability to or on account of a Plan
under Section 409, 502(i) or 502(l) of ERISA or Section 436(f) of
the Internal Revenue Code (including the giving of written notice thereof), or (e) any
Loan Party or any ERISA Affiliate has incurred or is likely to incur a
liability to a Multiemployer Plan under Sections 515, 4201, 4204 or 4212 of
ERISA, and each of the events set forth in clauses (a) through (e) would
reasonably likely result in the imposition of a lien, the granting of a
security interest, or a liability, or the reasonable likelihood of incurring a
lien, security interest or liability, and such lien, security interest or
liability will or would be reasonably likely to result in a liability on any
Loan Party or any ERISA Affiliate, which, either individually or in the
aggregate, would reasonably be expected to have a Material Adverse Effect; or

 

Section 9.13 
Failure of Debt to be Subordinated.  the Permitted Subordinated Debt or Existing
Senior Convertible Notes shall cease, for any reason, to be validly subordinated,
to the extent required by this Agreement, to the Obligations of the
Co-Borrowers and the Subsidiary Guarantors under the Loan Documents,

 

then,
and in any such event referred to in Section 9.01 through Section 9.13,
inclusive, the Administrative Agent shall at the request, or may with the
consent, of the Majority Lenders, take any or all of the following actions,
without prejudice to the rights of the Administrative Agent, any Lender or the
holder of any Note to enforce its claim against any Loan Party:  (a) declare the

 

127

 

obligation
of each Lender to make Advances (other than Letter of Credit Advances by an
Issuing Bank pursuant to Section 2.03(e)(i)) and the obligations of
the Swingline Bank to make Swingline Advances) and of any Issuing Bank to issue
Letters of Credit to be terminated, whereupon the same shall forthwith
terminate, (b) by notice to the Borrower, declare the Notes, all interest
thereon and all other amounts payable under this Agreement and the other Loan
Documents to be forthwith due and payable, whereupon the Notes, all such
interest and all such amounts shall become and be forthwith due and payable,
without presentment, demand, protest or further notice of any kind, all of which
are hereby expressly waived by the Borrower, (c) by notice to each party
required under the terms of any agreement in support of which a standby Letter
of Credit is issued, request that all Obligations under such agreement be
declared to be due and payable, (d) direct the Borrower to cash
collateralize Letters of Credit in accordance with Section 2.03(f)(iii), (e) set
off amounts in the Cash Collateral Account or any other accounts maintained
with the Administrative Agent or the Security Agent and apply such amounts to
the obligations of the Loan Parties hereunder and in the other Loan Documents
and (f) exercise any and all remedies under the Loan Documents and under
applicable law available to the Administrative Agent, the Security Agent and
the Lender Parties; provided, however, that in the event of an
actual or deemed entry of an order for relief with respect to any Loan Party or
any of its Subsidiaries under the Bankruptcy Code, the Notes, all such interest
and all such amounts shall automatically become and be due and payable, without
presentment, demand, protest or any notice of any kind, all of which are hereby
expressly waived by each Co-Borrower.

 

PART II

 

Application of Funds

 

Section 9.14 
Application of Funds.  (a) (I) Subject to the terms of the
Intercreditor Agreement, on or after the exercise of any of the remedies
provided in the last paragraph of Part I of Article IX, and subject
to Section 9.14(a)(II) (x) all moneys collected by the
Administrative Agent (or, to the extent any Collateral Document executed by a
Loan Party requires proceeds of Collateral thereunder which constitutes ABL
Priority Collateral, to be applied in accordance with the provisions of this
Agreement, by the Security Agent or other pledgee, assignee, mortgagee or other
corresponding party under such Collateral Document) upon any sale or other
disposition of the ABL Priority Collateral and (y) all other moneys
received by the Administrative Agent hereunder (or, to the extent any
Collateral Document executed by a Loan Party requires proceeds of collateral
thereunder to be applied in accordance with the provisions of this Agreement,
by the Security Agent or other pledgee, assignee, mortgagee or other
corresponding party under such Collateral Document) upon any exercise of remedies
hereunder, in each case on account of the Obligations, the Secured Hedging
Obligations or the Cash Management Obligations, shall be applied by the
Administrative Agent or the Security Agent in the following order:

 

(i)                             First, to payment of any and all sums advanced by the
Administrative Agent or the Security Agent in order to preserve the Collateral
or preserve its security interest in the Collateral;

 

(ii)                          Second, to the extent proceeds remain after the
application pursuant to the preceding clause, in the event of any proceeding
for the collection or enforcement of

 

128

 

any Obligations pursuant to the Loan Documents or
Secured Hedging Obligations, after an Event of Default shall have occurred and
be continuing, the expenses of retaking, holding, preparing for sale or lease,
selling or otherwise disposing of or realizing on the Collateral, or of any
exercise by the Administrative Agent or the Security Agent of its respective
rights hereunder or under the applicable Loan Document, together with
reasonable attorneys’ fees and court costs;

 

(iii)                       Third, to the extend proceeds remain after the
application pursuant to the preceding clause, all amounts owing to the
Administrative Agent in its capacity as such, any Co-Collateral Agent in its
capacity as such or to the Security Agent in its capacity as such;

 

(iv)                      Fourth, to the extent proceeds remain after the
application pursuant to the preceding clause, to payment of that portion of the
Obligations pursuant to the Loan Documents that are Primary Obligations
constituting fees, indemnities, expenses and other amounts (other than
principal and interest, but including fees and expenses of counsel to the
Administrative Agent, the Co-Collateral Agents, the Security Agent and the
Lender Parties) payable to the Secured Parties (other than the Cash Management
Creditors and the Secured Hedge Agreement Counterparties) ratably among them in
proportion to the amounts described in this clause Fourth payable to
them;

 

(v)                         Fifth, to the extent proceeds remain after the
application pursuant to the preceding clause, to payment of that portion of the
Obligations pursuant to the Loan Documents constituting accrued and unpaid
interest on the Advances that are Primary Obligations, ratably among the
Secured Parties (other than the Cash Management Creditors and the Secured Hedge
Agreement Counterparties) in proportion to the respective amounts described in
this clause Fifth payable to them;

 

(vi)                      Sixth, to the extent proceeds remain after the application
pursuant to the preceding clause, (i) to payment of that portion of the
Obligations pursuant to the Loan Documents constituting unpaid principal of the
Advances, (ii) to payment of that portion of the Secured Hedging
Obligations constituting unpaid principal and (iii) to cash collateralize
the aggregate Available LC Amount of all outstanding Letters of Credit in
accordance with the requirements of Section 2.03(f), in each case
that are Primary Obligations, ratably among the Secured Parties (other than the
Cash Management Creditors) in proportion to the respective amounts described in
this clause Sixth payable to them;

 

(vii)                   Seventh, to the extent proceeds remain after the
application pursuant to the preceding clause, to the payment of all other Obligations
pursuant to the Loan Documents and Secured Hedging Obligations (other than
Unmatured Surviving Obligations) of the Loan Parties owing under or in respect
of the Loan Documents and/or the Hedge Agreements that are due and payable to
the Administrative Agent, the Co-Collateral Agents, the Security Agent and the
other Secured Parties on such date, in each case that are Primary Obligations,
ratably based upon the respective aggregate amounts of all such Obligations
pursuant to the Loan Documents and Secured Hedging Obligations (other than
Unmatured Surviving Obligations) owing to the Administrative

 

129

 

Agent, the Co-Collateral Agents, the Security Agent
and the other Secured Parties (other than the Cash Management Creditors) on
such date;

 

(viii)                Eighth, to the extent proceeds remain after the
application pursuant to the preceding clause, to payment of that portion of the
Cash Management Obligations and Secured Hedging Obligations that are Secondary
Obligations constituting fees, indemnities, expenses and other amounts (other
than principal and interest, but including fees and expenses of counsel to the
respective Cash Management Creditors and the respective Secured Hedge Agreement
Counterparties) payable to the respective Cash Management Creditors and the
respective Secured Hedge Agreement Counterparties ratably among them in
proportion to the amounts described in this clause Eighth payable to
them;

 

(ix)                        Ninth, to the extent proceeds remain after the application
pursuant to the preceding clause, to payment of that portion of the Cash
Management Obligations and the Secured Hedging Obligations that are Secondary
Obligations constituting accrued and unpaid interest, ratably among the
respective Cash Management Creditors and the respective Secured Hedge Agreement
Counterparties in proportion to the respective amounts described in this clause
Ninth payable to them;

 

(x)                           Tenth, to the extent proceeds remain after the
application pursuant to the preceding clause, to payment of that portion of the
Cash Management Obligations constituting unpaid principal and payments of
Secured Hedging Obligations, that are Secondary Obligations, ratably among the
respective Cash Management Creditors and the respective Secured Hedging
Agreement Counterparties in proportion to the respective amounts described in
this clause Tenth payable to them;

 

(xi)                        Eleventh, to the extent proceeds remain after the
application pursuant to the preceding clause, to the payment of all other Cash
Management Obligations (other than Unmatured Surviving Obligations) of the Loan
Parties owing under or in respect of the Secured Cash Management Agreements and
all other Secured Hedging Obligations (other than Unmatured Surviving
Obligations) in respect of Hedge Agreements due and payable to the respective
Cash Management Creditors and the respective Secured Hedge Agreement
Counterparties on such date, that are Secondary Obligations, ratably based upon
the respective aggregate amounts of all such Cash Management Obligations and
all such Secured Hedging Obligations (other than Unmatured Surviving
Obligations) owing to the respective Cash Management Creditors and the
respective Secured Hedge Agreement Counterparties on such date;

 

(xii)                     Twelfth, to the extent proceeds remain after the
application pursuant to the preceding clause (xi), if the Senior Secured Notes
Obligations Termination Date has not occurred prior to such time, amounts equal
to the outstanding Senior Secured Noteholder Obligations shall be paid to the
Senior Secured Noteholder Collateral Agent for application to the Senior
Secured Noteholder Obligations in accordance with section 4.1 of the
Intercreditor Agreement; and

 

130

 

(xiii)      Last,
to the extent proceeds remain after the application pursuant to the preceding
clause, the balance, if any, after all of the Obligations pursuant to the Loan
Documents, all of the Secured Hedging Obligations and all of the Cash
Management Obligations (other than Unmatured Surviving Obligations) have been
indefeasibly paid in full, no Letters of Credit shall be outstanding that have
not been cash collateralized in a manner reasonably satisfactory to the
Administrative Agent and each Issuing Bank that issued them and the Commitments
shall have been terminated, to the Co-Borrowers or other Loan Parties or as
otherwise required by law.

 

(II) 
Subject to the terms of the Intercreditor Agreement, on or after the exercise
of any of the remedies provided in the last paragraph of Part I of Article IX
all moneys collected by the Administrative Agent (or, to the extent any other
Collateral Document requires proceeds of any Collateral thereunder that
constitutes Senior Secured Notes Priority Collateral to be applied in
accordance with the provisions of this Agreement, by the Security Agent or
other pledgee, assignee, mortgagee or other corresponding party under such
Collateral Document) upon any sale or other disposition of the Senior Secured
Notes Priority Collateral, together with all other moneys received by the
Administrative  Agent hereunder (or by
the Security Agent or other pledge, assignee, mortgagee or other corresponding
party thereunder respectively) with respect to, or derived from, any such
Senior Secured Notes Priority Collateral, shall be applied as follows:

 

(i)            first, in
accordance with article IV of the Intercreditor Agreement, to the Senior
Secured Notes Collateral Agent for application to the Senior Secured Notes
Obligations until the same have been repaid in full;

 

(ii)           second, to
the extent proceeds remain after the application pursuant to the preceding
clause (i), as otherwise provided in Section 9.14(a)(I).

 

(b)           Each of the Secured Parties, by their
acceptance of the benefits hereof and of the Collateral Documents executed by a
Loan Party, agrees and acknowledges that if the Secured Parties receive a
distribution on account of undrawn amounts with respect to Letters of Credit
issued under this Agreement (which shall only occur after all Letter of Credit
Advances have been paid in full), such amounts shall be paid to the Security
Agent and held by it, for the equal and ratable benefit of the Secured Parties,
as cash security for the repayment of Obligations owing by the Loan Parties to
the Secured Parties as such.  If any
amounts are held as cash security pursuant to the immediately preceding
sentence, then upon the termination of all outstanding Letters of Credit under
this Agreement, and after the application of all such cash security to the
repayment of all other Obligations owing by the Loan Parties to the Secured
Parties after giving effect to the termination of all such Letters of Credit,
if there remains any excess cash, such excess cash shall be returned by the
Security Agent to the Administrative Agent for distribution in accordance with Section 9.14(a).

 

(c)           Subject to the terms of the
Intercreditor Agreement, all payments required to be made hereunder shall be
made (x) if to the Lender Parties, to the Administrative Agent for the account
of the Lender Parties, (y) if to the Secured Hedge Agreement
Counterparties, to the trustee, paying agent or other similar representative
(each, a “Representative”) for the Secured Hedge Agreement
Counterparties or, in the absence of such a Representative, directly to the 

 

131

 

Secured Hedge Agreement
Counterparties and (z) if to the Cash Management Creditors, directly to
the Cash Management Creditors.

 

(d)           For the purposes of applying payments
received in accordance with this Section 9.14 and subject to the
terms of the Intercreditor Agreement, the Administrative Agent and the Security
Agent shall be entitled to rely upon (i) the Cash Management Creditors and
(ii) the Representative or, in the absence of such a Representative, the
Secured Hedge Agreement Counterparties for a determination (which each Cash
Management Creditor and each Secured Hedge Agreement Counterparty agrees (or
shall agree) to provide upon request of the Administrative Agent and the
Security Agent) of the outstanding Cash Management Obligations and/or the
Secured Hedging Obligations, as the case may be, of the Loan Parties owed to
the Cash Management Creditors and/or the Secured Hedge Agreement
Counterparties.  Unless it has received
written notice from a Cash Management Creditor and/or the Representative or, in
the absence of such a Representative, a Secured Hedge Agreement Counterparty to
the contrary, the Administrative Agent and the Security Agent, in acting
hereunder, shall be entitled to assume that no Secured Cash Management
Agreements or Approved Hedge Agreement Obligations are in existence.

 

(e)           Subject to the other limitations (if
any) set forth herein and in the other Loan Documents, the Hedge Agreements and
the Secured Cash Management Agreements, it is understood that the Loan Parties
shall remain liable (as and to the extent set forth in the Loan Documents, the
Hedge Agreements and the Secured Cash Management Agreements) to the extent of
any deficiency between the amount of the proceeds of the Collateral and the
aggregate amount of the Obligations, the Secured Hedging Obligations and the
Cash Management Obligations of the Loan Parties.

 

(f)            It is understood and agreed by all
parties hereto that the Administrative Agent and the Security Agent shall have
no liability for any determinations made by it in this Section 9.14
(including, without limitation, as to whether given Collateral constitutes
Senior Secured Notes Priority Collateral or ABL Priority Collateral), in each
case except to the extent resulting from the gross negligence or willful
misconduct of the Administrative Agent or the Security Agent (as determined by
a court of competent jurisdiction in a final and non-appealable decision).  The parties also agree that the Administrative
Agent and the Security Agent may (but shall not be required to), at any time
and in its sole discretion, and with no liability resulting therefrom, petition
a court of competent jurisdiction regarding any application of Collateral in
accordance with the requirements hereof and of the Intercreditor Agreement, and
the Administrative Agent and the Security Agent shall be entitled to wait for,
and may conclusively rely on, any such determination.

 

ARTICLE X

 

The
Administrative Agent and the Co-Collateral Agents

 

Section 10.01  Authorization and Action.  Each Lender Party (in its capacities as a
Lender, the Swingline Bank (if applicable) and an Issuing Bank (if applicable))
hereby irrevocably appoints and authorizes the Administrative Agent (for purposes
of this Article X and Section 11.04, the term “Administrative
Agent” also shall include Deutsche Bank Trust 

 

132

 

Company
Americas in its capacity as Security Agent pursuant to the Collateral Documents)
and each Co-Collateral Agent to take such action as agent on its behalf and to
exercise such powers and discretion under this Agreement and the other Loan
Documents as are delegated to the Administrative Agent or, as the case may be,
the Co-Collateral Agents by the terms hereof and thereof, together with such
powers and discretion as are reasonably incidental thereto.  Neither the Administrative Agent nor the
Co-Collateral Agents shall have any duties or responsibilities except those
expressly set forth in this Agreement and in the other Loan Documents, and the
Administrative Agent or, as the case may be, the Co-Collateral Agents may
perform any of its or their respective duties hereunder by or through its or
their officers, directors, agents, employees or affiliates.  The duties of the Administrative Agent shall
be mechanical and administrative in nature. Neither the Administrative Agent
nor the Co-Collateral Agents shall have by reason of this Agreement or any other
Loan Document a fiduciary relationship in respect of any Lender Party or the
holder of any Note. Nothing in this Agreement or in any other Loan Document,
expressed or implied, is intended to or shall be so construed as to impose upon
the Administrative Agent or, as the case may be, any Co-Collateral Agent any
obligations in respect of this Agreement or any other Loan Document except as
expressly set forth herein or therein. As to any matters not expressly provided
for by the Loan Documents (including, without limitation, enforcement or collection
of the Notes), neither the Administrative Agent nor the Co-Collateral Agents
shall be required to exercise any discretion or take any action, but the
Administrative Agent shall be required to act or to refrain from acting (and
shall not incur any liability to any Lender Party and shall be fully protected
in so acting or refraining from acting) upon the instructions of the Majority
Lenders, and such instructions shall be binding upon all Lender Parties and all
holders of Notes; provided, however, that neither the
Administrative Agent nor the Co-Collateral Agents shall be required to take any
action that exposes the Administrative Agent or, as the case may be, the
applicable Co-Collateral Agent to personal liability or that is contrary to
this Agreement or applicable law. 
Without limiting the foregoing, neither any Lender Party nor the holder
of any Note shall have any right of action whatsoever against the
Administrative Agent or any Co-Collateral Agent as a result of the
Administrative Agent or such Co-Collateral Agent acting or refraining from
acting hereunder or under any other Loan Document in accordance with the
instructions of the Majority Lenders (or, if so specified by this Agreement,
any applicable greater percentage of Lenders). 
The Administrative Agent agrees to give to each Lender Party prompt
notice of each notice given to it by the Borrower pursuant to the terms of this
Agreement.

 

Section 10.02  Administrative Agent’s and Co-Collateral
Agent’s Reliance, Etc.  Neither the Administrative Agent nor any
Co-Collateral Agent, nor any of their respective directors, officers, agents or
employees shall be liable for any action taken or omitted to be taken by it or
them under or in connection with the Loan Documents, except for its or their
own gross negligence or willful misconduct (as determined by a court of
competent jurisdiction in a final and non-appealable decision).  Without limitation of the generality of the
foregoing, the Administrative Agent and each Co-Collateral Agent:  (a) may deem and treat the payee of any
Note as the holder thereof until the Administrative Agent receives and accepts
an Assignment and Acceptance entered into by the Lender that is the payee of
such Note, as assignor, and an Eligible Assignee, as assignee, as provided in Section 11.07;
(b) with respect to any request, authority or consent of any Person who,
at the time of making such request or giving such authority or consent, is the
holder of any Note, may consider as conclusive and binding any such request,
authority or consent of  such Person, as
applicable, on any subsequent holder, transferee, 

 

133

 

assignee
or endorsee, as the case may be, of such Note or of any Note or Notes issued in
exchange therefore; (c) may consult with legal counsel (including counsel
for any Loan Party), independent public accountants and other experts selected
by it and shall not be liable for any action taken or omitted to be taken in
good faith by it in accordance with the advice of such counsel, accountants or
experts; (d) makes no warranty or representation to any Lender Party and
shall not be responsible to any Lender Party for any recitals, statements,
information, warranties or representations (whether written or oral) made in or
in connection with the Loan Documents; (e) shall not have any duty to
ascertain or to inquire as to (x) the performance or observance of any of
the terms, provisions, covenants or conditions of this Agreement or any Loan
Document on the part of any Loan Party, (y) the financial condition of any
Loan Party or (z) the existence or possible existence of any Default; (f) shall
not have any duty to inspect the property (including the books and records) of
any Loan Party; (g) shall not be responsible to any Lender Party for the
due execution, legality, validity, enforceability, genuineness, collectability,
sufficiency or value of any Loan Document, the financial condition of the
Borrower or any of its Subsidiaries or the perfection or priority of any lien
or security interest created or purported to be created under or in connection
with, any Loan Document or any other instrument or document furnished pursuant
thereto; and (h) shall incur no liability under or in respect of any Loan
Document by acting upon any notice, statement, consent, order, certificate or
other instrument or writing (which may be by telegram, telecopy, telex,
cablegram or electronic mail) or telephone message believed by it to be genuine
and signed, sent or made by the proper party or parties.

 

Section 10.03  DBTCA and Affiliates.  With respect to its Commitments, the Advances
made or required to be made by it and the Notes issued to it, DBTCA shall have
the same rights and powers under the Loan Documents as any other Lender Party
and may exercise the same as though it were not the Administrative Agent; and
the term “Lender Party” or “Lender Parties” or any similar terms
shall, unless otherwise expressly indicated, include DBTCA in its individual
capacity.  DBTCA and its Affiliates may
accept deposits from, lend money to, act as trustee under indentures of, accept
investment banking engagements from and generally engage in any kind of
banking, investment banking, trust or other business with, or provide debt
financing, equity capital or other services (including financial advisory
services) to, any Loan Party, any of its Subsidiaries and any Person who may do
business with or own securities of any Loan Party or any such Subsidiary, all
as if DBTCA were not the Administrative Agent and without any duty to account
therefor to the Lender Parties.  DBTCA
may accept fees and other consideration from any Loan Party or any Affiliate of
any Loan Party for services in connection with this Agreement and otherwise
without having to account for the same to the Lender Parties.

 

Section 10.04  Lender Party Credit Decision.  Each Lender Party acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other
Lender Party and based on the financial statements referred to in Section 4.01(f) and
such other documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement.  Each Lender Party also acknowledges that it
will, independently and without reliance upon the Administrative Agent or any
other Lender Party 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 this Agreement. 
Except as expressly provided in this Agreement, the Administrative Agent
shall not have any duty or responsibility, either initially or on a continuing
basis, to provide any Lender Party or the holder 

 

134

 

of
any Note with any credit or other information with respect thereto, whether
coming into its possession before the making of the Advances or at any time or
times thereafter.

 

Section 10.05  Indemnification.  (a)  Each Lender Party severally agrees
to indemnify the Administrative Agent and each Co-Collateral Agent (to the
extent not promptly reimbursed by the Borrower) from and against such Lender
Party’s ratable share (determined as provided below) of any and all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever that
may be imposed on, incurred by, or asserted against the Administrative Agent or
any Co-Collateral Agent (or any affiliate thereof) in performing its duties
hereunder or under any other Loan Document or in any way relating to or arising
out of the Loan Documents or any action taken or omitted by the Administrative
Agent or any Co-Collateral Agent under the Loan Documents; provided, however,
that no Lender Party shall be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from the Administrative Agent’s or any
Co-Collateral Agent’s gross negligence or willful misconduct (as determined by
a court of competent jurisdiction in a final and non-appealable decision).  Without limitation of the foregoing, each
Lender Party agrees to reimburse the Administrative Agent and each
Co-Collateral Agent, as applicable, promptly upon demand for its ratable share
of any costs and expenses (including, without limitation, reasonable fees and
expenses of counsel) payable by the Borrower under Section 11.04,
to the extent that the Administrative Agent or such Co-Collateral Agent is not
promptly reimbursed for such costs and expenses by the Borrower.  For purposes of this Section 10.05,
the Lender Parties’ respective ratable shares of any amount shall be
determined, at any time, according to the sum of (i) the aggregate
principal amount of the Advances outstanding at such time and owing to the
respective Lender Parties, (ii) their respective Pro Rata Shares of the
aggregate principal amount of all Swingline Advances outstanding at such time
made by the Swingline Bank, (iii) their respective Pro Rata Shares of the
aggregate Available LC Amount of all Letters of Credit outstanding at such time
and (iv) their respective Unused Commitments at such time; provided
that the aggregate principal amount of Swingline Advances owing to the
Swingline Bank and the aggregate principal amount of Letter of Credit Advances
owing to each Issuing Bank shall be considered to be owed to the Lenders
ratably in accordance with their respective Commitments.  In the event that any Defaulted Advance shall
be owing by any Defaulting Lender at any time, such Lender Party’s Commitment
shall be considered to be unused for purposes of this Section 10.05(a) to
the extent of the amount of such Defaulted Advance.  The failure of any Lender Party to reimburse
the Administrative Agent or any Co-Collateral Agent promptly upon demand for
its ratable share of any amount required to be paid by the Lender Party to the
Administrative Agent or such Co-Collateral Agent as provided herein shall not
relieve any other Lender Party of its obligation hereunder to reimburse the
Administrative Agent or such Co-Collateral Agent for its ratable share of such
amount, but no Lender Party shall be responsible for the failure of any other
Lender Party to reimburse the Administrative Agent or any Co-Collateral Agent
for such other Lender Party’s ratable share of such amount.  Without prejudice to the survival of any
other agreement of any Lender Party hereunder, the agreement and obligations of
each Lender Party contained in this Section 10.05 shall survive the
payment in full of principal, interest and all other amounts payable hereunder
and under the other Loan Documents.

 

(b)           Each Lender severally agrees to
indemnify the Swingline Bank and each Issuing Bank (to the extent not promptly
reimbursed by the Borrower) from and against such 

 

135

 

Lender Party’s ratable
share (determined as provided below) of any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever that may be imposed on, incurred
by, or asserted against the Swingline Bank and each Issuing Bank in any way
relating to or arising out of the Loan Documents or any action taken or omitted
by the Swingline Bank and each Issuing Bank under the Loan Documents; provided,
however, that no Lender Party shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from the Swingline Bank’s or
such Issuing Bank’s gross negligence or willful misconduct (as determined by a
court of competent jurisdiction in a final and non-appealable decision).  Without limitation of the foregoing, each
such Lender Party agrees to reimburse the Swingline Bank and each Issuing Bank
promptly upon demand for its ratable share of any costs and expenses
(including, without limitation, reasonable fees and expenses of counsel)
payable by the Borrower under Section 11.04, to the extent that the
Swingline Bank or such Issuing Bank is not promptly reimbursed for such costs
and expenses by the Borrower.  For
purposes of this Section 10.05(b), the Lender Parties’ respective
ratable shares of any amount shall be determined, at any time, according to the
sum of (i) the aggregate principal amount of the Advances outstanding at
such time and owing to the respective Lender Parties, (ii) their
respective Pro Rata Shares of the aggregate principal amount of all Swingline
Advances outstanding at such time made by the Swingline Bank, (iii) their
respective Pro Rata Shares of the aggregate Available LC Amount of all Letters
of Credit outstanding at such time issued by such Issuing Bank and (iv) their
respective Unused Commitments at such time; provided that the aggregate
principal amount of Swingline Advances owing to the Swingline Bank and the
aggregate principal amount of Letter of Credit Advances owing to such Issuing
Bank shall be considered to be owed to the Lenders ratably in accordance with
their respective Commitments.  In the event
that any Defaulted Advance shall be owing by any Defaulting Lender at any time,
such Lender Party’s Commitment shall be considered to be unused for purposes of
this Section 10.05(b) to the extent of the amount of such
Defaulted Advance.  The failure of any
such Lender Party to reimburse the Swingline Bank or any Issuing Bank promptly
upon demand for its ratable share of any amount required to be paid by the
Lender Parties to the Swingline Bank or such Issuing Bank as provided herein
shall not relieve any other Lender Party of its obligation hereunder to
reimburse the Swingline Bank or such Issuing Bank for its ratable share of such
amount, but no Lender Party shall be responsible for the failure of any other
Lender Party to reimburse the Swingline Bank or such Issuing Bank for such
other Lender Party’s ratable share of such amount.  Without prejudice to the survival of any
other agreement of any Lender Party hereunder, the agreement and obligations of
each such Lender Party contained in this Section 10.05(b) shall
survive the payment in full of principal, interest and all other amounts
payable hereunder and under the other Loan Documents.

 

Section 10.06  Successor Administrative Agents.  The Administrative Agent may resign at any
time by giving written notice thereof to the Lender Parties and the
Borrower.  Any such resignation by the
Administrative Agent shall also constitute its resignation as the Swingline
Bank and as an Issuing Bank, in which case the resigning Administrative Agent (x) shall
not be required to make any additional Swingline Advances or issue any further
Letters of Credit hereunder and (y) shall maintain all of its rights as
Swingline Bank, as the case may be, with respect to any Swingline Advances made
by it, or any Letters of Credit issued by it, prior to the date of such
resignation.  Upon any such resignation,
the Majority Lenders shall, with the consent of the Borrower (such consent not
to be unreasonably withheld or delayed and such 

 

136

 

consent
not to be required if an Event of Default then exists) have the right to
appoint a successor Administrative Agent. 
Such successor Administrative Agent shall serve until such time, if any,
as the Majority Lenders appoint a new successor Administrative Agent as
provided above.  If no successor
Administrative Agent has been appointed by the twentieth (20th) Business Day
after the date such notice of resignation was given by the retiring
Administrative Agent, such retiring Administrative Agent’s resignation shall
become effective and the Majority Lenders shall thereafter perform all the
duties of the Administrative Agent hereunder and/or under any other Loan
Document until such time, if any, as the Majority Lenders appoint a successor
Administrative Agent as provided above. 
If no successor Administrative Agent shall have been so appointed by the
Majority Lenders and consented to by the Borrower, and shall have accepted such
appointment, within fifteen (15) Business Days after the retiring Administrative
Agent’s giving of notice of resignation, then the retiring Administrative Agent
may, on behalf of the Lender Parties and with the consent of the Borrower (such
consent not to be unreasonably withheld or delayed and such consent not to be
required if an Event of Default then exists) appoint a successor Administrative
Agent, which shall be a commercial bank or trust company organized under the
laws of the United States or of any State thereof and having a combined capital
and surplus of at least $250,000,000. 
Upon the acceptance of any appointment as the Administrative Agent
hereunder by a successor Administrative Agent and upon the execution and filing
or recording of such financing statements, or amendments thereto, and such
other instruments or notices, as may be necessary or desirable, or as the
Majority Lenders may request, in order to continue the perfection of the Liens
granted or purported to be granted by the Collateral Documents, such successor
Administrative Agent shall succeed to and become vested with all the rights,
powers, discretion, privileges and duties of the retiring Administrative Agent,
and the retiring Administrative Agent shall be discharged from its duties and
obligations under the Loan Documents. 
Notwithstanding the foregoing, the retiring Administrative Agent shall
be discharged from its duties and obligations hereunder and under the other
Loan Documents upon the effectiveness of its resignation pursuant to the fourth
sentence of this Section 10.06. 
After any retiring Administrative Agent’s resignation hereunder as
Administrative Agent, such retiring Administrative Agent shall remain
indemnified to the extent provided in this Agreement and the other Loan
Documents, and the provisions of this Article X and Section 11.04
(and the analogous provisions of the other Loan Documents) 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.

 

Section 10.07  Lead Arrangers, Syndication Agent and
Documentation Agent.  Neither the
Lead Arrangers, nor the Syndication Agent nor the Documentation Agents shall
have any duties or obligations under this Agreement or the other Loan Documents
in their capacities as Lead Arrangers, Syndication Agent or Documentation
Agents respectively.

 

Section 10.08  Collateral Matters.  (a)  Each Lender Party authorizes and
directs the Security Agent to enter into the Collateral Documents and the
Intercreditor Agreement for the benefit of the Lender Parties and the other
Secured Parties.  Each Lender Party
hereby agrees, and each holder of any Note by the acceptance thereof will be
deemed to agree, that, except as otherwise set forth herein, any action taken
by the Majority Lenders in accordance with the provisions of this Agreement,
the Collateral Documents or the Intercreditor Agreement, and the exercise by
the Majority Lenders of the powers set forth herein or therein, together with
such other powers as are reasonably incidental thereto, shall be authorized and
binding upon all of the Lender Parties. 
The Security Agent is hereby authorized on behalf of all of the Lender
Parties, 

 

137

 

without
the necessity of any notice to or further consent from any Lender Party, from
time to time prior to an Event of Default, to take any action with respect to
any Collateral, Collateral Documents or the Intercreditor Agreement which may
be necessary to perfect and maintain perfected the security interest in and
liens upon the Collateral granted pursuant to the Collateral Documents.

 

(b)           The Security Agent shall have no
obligation whatsoever to the Lender Parties or to any other Person to assure
that the Collateral exists or is owned by any Loan Party or is cared for,
protected or insured or that the Liens granted to the Security Agent herein or
pursuant hereto have been properly or sufficiently or lawfully created,
perfected, protected or enforced or are entitled to any particular priority, or
to exercise or to continue exercising at all or in any manner or under any duty
of care, disclosure or fidelity any of the rights, authorities and powers
granted or available to the Security Agent in this Section 10.08,
in any of the Collateral Documents or the Intercreditor Agreement, it being
understood and agreed that in respect of the Collateral, or any act, omission
or event related thereto, the Security Agent may act in any manner it may deem
appropriate, in its sole discretion, given the Security Agent’s own interest in
the Collateral as one of the Lender Parties and that the Security Agent shall
have no duty or liability whatsoever to the Lender Parties, except for its
gross negligence or willful misconduct (as determined by a court of competent
jurisdiction in a final and non-appealable decision).

 

Section 10.09  Delivery of Information.  The Administrative Agent shall not be
required to deliver to any Lender Party originals or copies of any documents,
instruments, notices, communications or other information received by the
Administrative Agent from any Loan Party, any Subsidiary of any Loan Party, the
Majority Lenders, any Lender Party or any other Person under or in connection
with this Agreement or any other Loan Document except (i) as specifically
provided in this Agreement or any other Loan Document and (ii) as
specifically requested from time to time in writing by any Lender Party with
respect to a specific document, instrument, notice or other written
communication received by and in the possession of the Administrative Agent at
the time of receipt of such request and then only in accordance with such
specific request.

 

Section 10.10  Co-Collateral Agents.  (a)  Any Co-Collateral Agent may resign
at any time upon written notice to the Borrower, the Administrative Agent and
each Lender and the resignation of such Co-Collateral Agent shall become
effective immediately upon the delivery of such written notice.

 

(b)           Upon a resignation of any
Co-Collateral Agent pursuant to Section 10.10(a), any Co-Collateral
Agent shall remain indemnified to the extent provided in this Agreement and the
other Loan Documents and the provisions of this Section 10.10 (and
the analogous provisions of the other Loan Documents) shall continue in effect
for the benefit of such Co-Collateral Agent for all of its actions and
inactions while serving as such Co-Collateral Agent hereunder and under the
other Loan Documents.

 

(c)           (i) If the Commitments of
SunTrust Bank are less than $15,000,000 or SunTrust Bank is a Defaulting
Lender, SunTrust Bank may be removed as a Co-Collateral Agent by the Borrower
or the Majority Lenders upon written notice to it as Co-Collateral Agent and
with such removal to become effective immediately upon the delivery of such
written notice, 

 

138

 

(ii) if the
Commitments of Wells Fargo Capital Finance, LLC are less than $15,000,000 or
Wells Fargo Capital Finance, LLC is a Defaulting Lender, Wells Fargo Capital
Finance, LLC may be removed as a Co-Collateral Agent by the Borrower or the
Majority Lenders upon written notice to it as Co-Collateral Agent and with such
removal to become effective immediately upon the delivery of such written
notice.

 

(d)           Notwithstanding anything to the
contrary contained in this Agreement, no Co-Collateral Agent may assign its
role and responsibilities in connection with any assignment permitted by Section 11.07.

 

(e)           If a Co-Collateral Agent proposes an
adjustment or revision to Borrowing Base eligibility standards, advance rates
applicable to the Borrowing Base or reserves, or makes any other proposal
regarding a determination or action which may be made by the Co-Collateral
Agents pursuant to this Agreement or any other Loan Document, the other
Co-Collateral Agents shall respond to such proposal within three Business Days
of their receipt of such written proposal. 
In the event that the Co-Collateral Agents cannot agree on Borrowing
Base eligibility standards, advance rates applicable to the Borrowing Base or
reserves or any other action or determination which may be made by the
Co-Collateral Agents pursuant to this Agreement or any other Loan Document, the
consenting vote of 2 of the 3 Co-Collateral Agents shall be required; provided
that if there are only two Co-Collateral Agents at the time of such
determination, the determination shall be made by the individual Co-Collateral
Agent either asserting the more conservative credit judgment, the numerically
larger reserve or declining to permit the requested action for which consent is
being sought by the relevant Co-Borrowers, as applicable; provided  further
in the event an issue cannot be resolved by either the more conservative credit
judgment, the numerically larger reserve or declining to permit a requested
action by the Co-Borrowers (such as the selection or replacement of an
appraisal firm), then the decision of the Security Agent shall be final.

 

ARTICLE XI

 

Miscellaneous

 

Section 11.01  Amendments, Etc.  (a)  General.  No amendment or waiver of any provision of
this Agreement or the Notes or any other Loan Document, nor consent to any
departure by the Funds Administrator therefrom, shall in any event be effective
unless the same shall be in writing and signed (or, in the case of the
Collateral Documents, consented to) by (i) the Funds Administrator (or in
the case of any Collateral Document, the Loan Party or Loan Parties party to
such Collateral Document), (ii) the Majority Lenders and (iii) any
other Lender Party, the consent of which is required pursuant to any of Section 11.01(b) through
(f), and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

 

(b)           All Lenders.  No amendment, waiver or consent shall, unless
in writing and signed by all of the Lenders (other than any such Lender that
is, at such time, a Defaulting Lender), do any of the following at any time:

 

(i)            waive any of the conditions
specified in Section 3.01 or, in the case of the 

 

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initial Borrowings
under this Agreement, Section 3.02,

 

(ii)           change the percentage of (x) the
Commitments, (y) the aggregate unpaid principal amount of the Revolving
Advances or (z) the aggregate Available LC Amount of outstanding Letters
of Credit that, in each case, shall be required for the Lenders or any of them
to take any action hereunder,

 

(iii)          amend the definition of “Majority
Lenders” or “Supermajority Lenders”,

 

(iv)          amend, waive or modify any provision
this Section 11.01,

 

(v)           increase the advance rate used in the
calculation of Inventory Formula Amount or Accounts Formula Amount,

 

(vi)          (other than pursuant to any
transaction permitted under Section 6.04 or except as expressly
provided for in any Loan Document), release all or substantially all of the
Collateral in any transaction or series of related transactions,

 

(vii)         (other than pursuant to any transaction
permitted under Section 6.03 or Section 6.04 or except
as expressly provided for in any Loan Document), release all or substantially
all of the Loan Parties (other than the Borrower) from their obligations as
guarantors under the Collateral Documents in any transaction or series of
related transactions, or

 

(viii)        (other than pursuant to any transaction
permitted under Section 6.03 or Section 6.04 or except
as expressly provided for in any Loan Document), otherwise release the Borrower
or all or substantially all of the Co-Borrowers (other than the Borrower) from
their liability with respect to the Obligations owing to the Administrative
Agent, the Co-Collateral Agents, the Security Agent and the Lender Parties
under any of the Loan Documents in any transaction or series of related
transactions.

 

(c)           Affected Lenders.  No amendment, waiver or consent shall, unless
in writing and signed by the Majority Lenders and by each affected Lender
(other than any such Lender that is, at such time, a Defaulting Lender, provided
that the consent of each affected Defaulting Lender shall be required in
connection with any matter requiring any consent or approval under clause (iii) below):

 

(i)            reduce, postpone or change the order
of application of, or right to decline to receive, any repayment or prepayment
of principal required to be paid pursuant to Sections 2.04 or 2.06,

 

(ii)           amend, waive or modify Section 9.14
if such amendment, waiver or modification would adversely affect such Lender,

 

(iii)          increase the Commitment of any Lender
or subject any Lender to any additional obligations,

 

(iv)          postpone any date fixed for any
payment of principal or interest on the

 

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Notes or any
reimbursement obligation in respect of any Swingline Advance or Letter of
Credit or Letter of Credit Advance or any fees or other amounts payable
hereunder or postpone the final maturity date of the Facility, or

 

(v)           reduce the principal of, or interest
(other than a waiver of increased interest following a Default pursuant to Section 2.07(b))
on, the Notes or any reimbursement obligation in respect of any Swingline
Advance or Letter of Credit or Letter of Credit Advance or any fees or other amounts
payable hereunder.

 

(d)           Supermajority Lenders.  No amendment, waiver or consent shall, unless
in writing and signed by the Supermajority Lenders amend or expand any of
the following definitions, in each case the effect of which would be to
increase the amounts available for borrowing hereunder: “Availability Reserves”, “Borrowing Base”, “Eligible
Accounts” and “Eligible Inventory” (including, in each
case, the defined terms used therein), provided that the Co-Collateral Agents can in accordance with the terms hereof
introduce new criteria the effect of which would be to reduce the
amounts available for borrowing hereunder and, following such introduction, may modify or eliminate such new criteria, in each case with respect to “Availability
Reserves”, “Eligible Accounts” and “Eligible Inventory” and any such change
will not be deemed to require a Supermajority Lender consent.

 

(e)           Swingline Bank, Issuing Bank,
Administrative Agent, Security Agent and Co-Collateral Agents.  No amendment, waiver or consent shall, unless
in writing and signed by the Swingline Bank and each affected Issuing Bank, as
the case may be, in addition to the Lenders required above to take such action,
affect the rights or obligations of the Swingline Bank or such Issuing Bank, as
the case may be, under this Agreement; and no amendment, waiver or consent
shall, unless in writing and signed by the Administrative Agent in addition to
the Lenders required above to take such action, affect the rights or duties of
the Administrative Agent under this Agreement; and no amendment, waiver or
consent shall, unless in writing and signed by the Security Agent in addition
to the Lenders required above to take such action, affect the rights or duties
of the Security Agent under this Agreement; and no amendment, waiver or consent
shall, unless in writing and signed by any Co-Collateral Agent in addition to
the Lenders required above to take such action, affect the rights or duties of
such Co-Collateral Agent under this Agreement.

 

(f)            Notwithstanding anything to the
contrary contained in this Section 11.01, the Funds Administrator,
the Administrative Agent and each Incremental Lender may, in accordance with
the provisions of Section 2.16, as applicable, enter into an
Incremental Commitment Agreement, provided
that after the execution and delivery by the Funds Administrator, the
Administrative Agent and each such Incremental Lender of such Incremental
Commitment Agreement, such Incremental Commitment Agreement may thereafter only
be modified in accordance with the requirements of this Section 11.01.

 

Section 11.02  Notices, Etc.  All notices and other communications provided
for hereunder shall be in writing (including telecopy or electronic mail
communication) and mailed, or transmitted by telecopier or electronic mail, or
delivered, if to the Funds Administrator, to its address at P.O. Box
15600, 7140 Office Circle, Evansville, IN 47715, Attn:  Office of General Counsel; if to any Initial
Lender or the Initial Issuing Bank, to its Lending Office specified 

 

141

 

opposite
its name on Schedule I hereto; if to any other Lender, to its
Lending Office specified in the Assignment and Acceptance pursuant to which it
became a Lender; if to the Administrative Agent or DBTCA as Co-Collateral
Agent, to its address at Deutsche Bank Trust Company Americas, 60 Wall Street,
MS NYC60-0208, New York, New York 10005, Attention: Omayra Laucella; if to
SunTrust Bank as Co-Collateral Agent, to its address at SunTrust Bank, 303
Peachtree Street, 23rd Fl. GA-Atlanta-1981, Atlanta, Georgia 30303, Attention:
B. Earl Garris; if to Wells Fargo Capital Finance, LLC as Co-Collateral Agent,
to its address at Wells Fargo Capital Finance, LLC, 301 S. College Street MAC
D1053-221, Charlotte, North Carolina 28202, Attention: Brian Mobley; or, as to
the Funds Administrator or the Administrative Agent, to such other address as
shall be designated by such party in a written notice to the other parties and,
as to each other party, at such other address as shall be designated by such
party in a written notice to the Funds Administrator and the Administrative
Agent pursuant to this Section 11.02; provided that
materials required to be delivered pursuant to Sections 7.02, 7.03
and 7.11 shall be delivered to the Administrative Agent in an electronic
medium in a format reasonably acceptable to the Administrative Agent.  All such notices and communications shall,
when mailed, or transmitted by telecopier or electronic mail, be effective when
deposited in the mail, transmitted by telecopier or confirmed by e-mail,
respectively, except that notices and communications to the Administrative
Agent pursuant to Sections 2.03(a) and 2.06(a) and
with respect to selected Interest Periods in respect of LIBOR Advances shall
not be effective until received by the Administrative Agent.  Delivery by telecopier, electronic mail in
PDF format or other electronic format of an executed counterpart of any
amendment or waiver of any provision of this Agreement or the Notes or of any Exhibit hereto
to be executed and delivered hereunder shall be effective as delivery of a
manually executed counterpart thereof.

 

Section 11.03  No Waiver; Remedies.  No failure on the part of any Lender Party,
the Administrative Agent or any Co-Collateral Agent to exercise, and no delay
in exercising, any right hereunder or under any Note shall operate as a waiver
thereof; nor shall any single or partial exercise of any such right preclude
any other or further exercise thereof or the exercise of any other right.  The remedies herein provided are cumulative
and not exclusive of any remedies provided by law.

 

Section 11.04  Costs, Expenses. (a) 
Each Co-Borrower agrees to pay on demand (i) all costs and expenses of the
Administrative Agent and each Co-Collateral Agent in connection with the
preparation, execution, delivery, administration, modification and amendment of
the Loan Documents (including, without limitation, (A) all reasonable due
diligence, collateral review, syndication, transportation, computer,
duplication, appraisal, audit, insurance, consultant, search, filing and
recording fees and expenses, (B) the reasonable fees and expenses of White &
Case LLP, special New York counsel and Mexican counsel, and Stikeman Elliott
LLP, Canadian counsel for the Administrative Agent with respect thereto and one
other local counsel acting in each other material jurisdiction, in each case
acting jointly for the Administrative Agent and the Co-Collateral Agents, and (C) the
reasonable fees and expenses of one counsel to the Administrative Agent (acting
jointly for the Administrative Agent and the Co-Collateral Agents) (and in the
event of any conflict of interest not more than one additional counsel) with
respect to advising the Administrative Agent as to its rights and
responsibilities, or the perfection, protection or preservation of rights or
interests, under the Loan Documents, with respect to negotiations with any Loan
Party or with other creditors of any Loan Party or any of its Subsidiaries
arising out of any Default or any events or circumstances that may give rise to
a 

 

142

 

Default
and with respect to presenting claims in or otherwise participating in or
monitoring any bankruptcy, insolvency or other similar proceeding involving
creditors’ rights generally and any proceeding ancillary thereto), (ii) all
costs and expenses of the Administrative Agent, the Co-Collateral Agents and
the Lender Parties in connection with the enforcement of the Loan Documents,
whether in any action, suit or litigation, any bankruptcy, insolvency or other
similar proceeding affecting creditors’ rights generally (including, without
limitation, the reasonable fees and expenses of one counsel for the
Administrative Agent and each Co-Collateral Agent and in the event of any
conflict of interest not more than one additional counsel) and (iii) all
reasonable costs and expenses of the Swingline Bank and each Issuing Bank in
connection with the Back-Stop Arrangements entered into by such Persons.

 

(b)           Each Co-Borrower agrees to indemnify
and hold harmless the Administrative Agent, each Co-Collateral Agent, each
Lender Party and each of their Affiliates and their officers, directors,
trustees, employees, agents and advisors (each, an “Indemnified Party”)
from and against any and all claims, damages, losses, liabilities and expenses
(including, without limitation, reasonable fees and expenses of counsel) that
may be incurred by or asserted or awarded against any Indemnified Party, in
each case arising out of or in connection with or by reason of (including,
without limitation, in connection with any investigation, litigation or
proceeding or preparation of a defense in connection therewith) (i) the
Facility, any real property owned by, leased by or leased to any Loan Party,
the actual or proposed use of the proceeds of the Advances or the Letters of
Credit, the Loan Documents or any of the transactions contemplated thereby or (ii) the
actual or alleged presence of Hazardous Materials on any property of any Loan
Party or any of its Subsidiaries or any Environmental Action relating in any
way to any Loan Party or any of its Subsidiaries, except to the extent, in each
case, such claim, damage, loss, liability or expense is found in a final, non-appealable
judgment by a court of competent jurisdiction to have resulted from such
Indemnified Party’s gross negligence or willful misconduct.  In the case of an investigation, litigation
or other proceeding to which the indemnity in this Section 11.04(b) applies,
such indemnity shall be effective whether or not such investigation, litigation
or proceeding is brought by any Loan Party, its directors, shareholders or
creditors or an Indemnified Party or any Indemnified Party is otherwise a party
thereto and whether or not the transactions contemplated hereby are
consummated.

 

(c)           If any payment of principal of, or
Conversion of, any LIBOR Advance is made by any Co-Borrower to or for the
account of a Lender Party other than on the last day of the Interest Period for
such Advance, as a result of a payment or Conversion pursuant to Sections 2.03,
2.06(b)(i) or 2.07(c), acceleration of the maturity of the
Notes pursuant to Part I of Article IX or for any other reason (other
than as a result of  the Administrative
Agent giving notice under Section 2.07(d), or any Lender giving
notice under Section 2.07(d)) the applicable Co-Borrower shall,
upon demand by such Lender Party (with a copy of such demand to the
Administrative Agent), pay to the Administrative Agent for the account of such
Lender Party any amounts required to compensate such Lender Party for any
additional losses, costs or expenses that it may reasonably incur as a result
of such payment, including, without limitation, any loss (including loss of
anticipated profits), cost or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by any Lender Party to fund or
maintain such Advance.

 

143

 

(d)           If any Loan Party fails to pay when
due any costs, expenses or other amounts payable by it under any Loan Document,
including, without limitation, fees and expenses of counsel and indemnities,
such amount may be paid on behalf of such Loan Party by the Administrative
Agent, any Co-Collateral Agent or any Lender Party, in its sole discretion.

 

(e)           Without prejudice to the survival of
any other agreement of any Loan Party hereunder or under any other Loan
Document, the agreements and obligations of the Co-Borrowers contained in Sections 2.07
and 2.09 and this Section 11.04 shall survive the payment in
full of principal, interest and all other amounts payable hereunder and under
any of the other Loan Documents.

 

Section 11.05  Right of Set-off.  Upon (a) the occurrence and during the
continuance of any Event of Default and (b) the making of the request or
the granting of the consent specified by Part I of Article IX to
authorize the Administrative Agent to declare the Notes due and payable
pursuant to the provisions of Part I of Article IX, each Lender Party
and each of its respective Affiliates is hereby authorized at any time and from
time to time, to the fullest extent permitted by law, to set-off and otherwise
apply any and all deposits (general or special, time or demand, provisional or
final) at any time held and other indebtedness at any time owing by such Lender
Party or such Affiliate to or for the credit or the account of any Co-Borrower
against any and all of the Obligations of the Co-Borrowers now or hereafter
existing under this Agreement and the Note or Notes (if any) held by such
Lender Party, irrespective of whether such Lender Party shall have made any
demand under this Agreement or such Note or Notes and although such obligations
may be unmatured.  Each Lender Party agrees
promptly to notify the Funds Administrator after any such set-off and
application; provided, however, that the failure to give such
notice shall not affect the validity of such set-off and application.  The rights of each Lender Party and its
respective Affiliates under this Section are in addition to other rights
and remedies (including, without limitation, other rights of set-off) that such
Lender Party and its respective Affiliates may have.

 

Section 11.06  Binding Effect.  This Agreement shall become effective
when it shall have been executed by the Funds Administrator, each
Co-Borrower, the Administrative Agent and each Co-Collateral Agent
and when the Administrative Agent shall have been notified by each
Initial Lender, the Swingline Bank and the Initial Issuing Bank that such
Person has executed it and thereafter shall be binding upon and inure to the
benefit of the Funds Administrator, each Co-Borrower, the Administrative Agent,
each Co-Collateral Agent and each Lender Party and their respective successors
and assigns, except that neither the Funds Administrator nor any Co-Borrower
shall have the right to assign its rights or Obligations hereunder or any
interest herein without the prior written consent of the Lender Parties.

 

Section 11.07  Assignments and Participations.  (a)  Each Lender may, with
the consent of the Administrative Agent (and, regardless of the identity of the
assignee each Issuing Bank), and, so long as no Event of Default has occurred
and is continuing, with the consent of the Funds Administrator (in each case,
such consent not to be unreasonably withheld or delayed), assign to one or more
Eligible Assignees all or a portion of its rights and obligations under this
Agreement (including, without limitation, all or a portion of its Commitment or
Commitments, its obligation to purchase a participation in any Letter of Credit
pursuant to Section 2.03(d), the Advances owing to it and the Note
or Notes held by it); provided, however, that no consent by 

 

144

 

the Funds Administrator or the Administrative Agent
shall be required for an assignment to any Person who is an Affiliate or a
Related Fund of such Lender, and provided  further that (i) each
such assignment shall be of a uniform, and not a varying, percentage of all
rights and obligations under and in respect of the Facility, (ii) except
in the case of an assignment to a Person that, immediately prior to such
assignment, was a Lender, an Affiliate of any Lender or a Related Fund of any Lender
or an assignment which will result in a group of Lenders which are managed by
the same Person holding a Commitment, an obligation to purchase a participation
in a Letter of Credit pursuant to Section 2.03(d) or an
Advance (as the case may be) of not less than $5,000,000 or an assignment of
all of a Lender’s rights and obligations under this Agreement, the amount of
the Commitment, or the obligation to purchase a participation in a Letter of
Credit pursuant to Section 2.03(d), or the participation in the
Advances, in each case of the assigning Lender being assigned pursuant to each
such assignment (determined as of the date of the Assignment and Acceptance
with respect to such assignment) shall in no event be less than $5,000,000 (or
integral multiples of $200,000 in excess thereof), (iii) each such
assignment shall be to an Eligible Assignee and (iv) the parties to each
such assignment shall execute and deliver to the Administrative Agent, for its
acceptance and recording in the Register, an Assignment and Acceptance,
together with any Note or Notes subject to such assignment and, other than in
the case of an assignment to an Affiliate of such Lender, a processing and
recordation fee of $3,500, provided that only one such fee shall be
payable in connection with simultaneous assignments by or to two or more
Related Funds.

 

(b)           Upon such execution, delivery,
acceptance and recording, from and after the effective date specified in such
Assignment and Acceptance, (x) the assignee thereunder shall be a party hereto
and, to the extent that rights and obligations hereunder have been assigned to
it pursuant to such Assignment and Acceptance, have the rights and obligations
of a Lender or Issuing Bank, as the case may be, hereunder and (y) the
Lender or Issuing Bank assignor thereunder shall, to the extent that rights and
obligations hereunder have been assigned by it pursuant to such Assignment and
Acceptance, relinquish its rights and be released from its obligations under
this Agreement (and, in the case of an Assignment and Acceptance covering all
or the remaining portion of an assigning Lender’s or Issuing Bank’s rights and
obligations under this Agreement, such Lender or Issuing Bank shall cease to be
a party hereto but shall continue to be entitled to the benefits of Sections 2.07,
2.09 and 11.04).

 

(c)           By executing and delivering an
Assignment and Acceptance, the Lender Party assignor thereunder and the
assignee thereunder confirm to and agree with each other and the other parties
hereto as follows:  (i) other than
as provided in such Assignment and Acceptance, such assigning Lender Party
makes no representation or warranty and assumes no responsibility with respect
to any statements, warranties or representations made in or in connection with
this Agreement or any other Loan Document or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of, or the perfection or
priority of any lien or security interest created or purported to be created
under or in connection with, this Agreement or any other Loan Document or any
other instrument or document furnished pursuant hereto or thereto; (ii) such
assigning Lender Party makes no representation or warranty and assumes no
responsibility with respect to the financial condition of the Borrower or any
other Loan Party or the performance or observance by any Loan Party of any of
its obligations under any Loan Document or any other instrument or document
furnished pursuant thereto; (iii) such assignee confirms that it has
received a copy of this Agreement, together with copies of the financial 

 

145

 

statements referred to in Section 4.01(f) and
the most recent financial statements delivered pursuant to Sections 7.01,
7.02 and 7.03, and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
such Assignment and Acceptance; (iv) such assignee will, independently and
without reliance upon the Administrative Agent, such assigning Lender Party or
any other Lender Party 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 this Agreement; (v) such assignee
confirms that it is an Eligible Assignee; (vi) such assignee appoints and
authorizes the Administrative Agent to take such action as agent on its behalf
and to exercise such powers and discretion under the Loan Documents as are
delegated to the Administrative Agent by the terms hereof, together with such
powers and discretion as are reasonably incidental thereto; and (vii) such
assignee agrees that it will perform in accordance with their terms all of the
obligations which by the terms of this Agreement are required to be performed
by it as a Lender or Issuing Bank, as the case may be.

 

(d)           The Administrative Agent, acting for
this purpose (but only for this purpose) as the agent of the Co-Borrowers,
shall maintain at its address referred to in Section 11.02 a copy
of each Assignment and Acceptance delivered to and accepted by it and a
register for the recordation of the names and addresses of the Lender Parties
and the Commitment of, and principal amount of the Advances owing under each
Facility to each Lender Party from time to time (the “Register”).  Any provision of Incremental Commitments
pursuant to Section 2.16 shall be recorded by the Administrative
Agent on the Register only upon the acceptance of the Administrative Agent of a
properly executed and delivered Incremental Commitment Agreement.  The entries in the Register shall be
conclusive and binding for all purposes, absent manifest error, and the
Co-Borrowers, the Administrative Agent and the Lender Parties shall treat each
Person whose name is recorded in the Register as a Lender Party hereunder for
all purposes of this Agreement.  The
Register shall be available for inspection by the Funds Administrator or any
Lender Party at any reasonable time and from time to time upon reasonable prior
notice.

 

(e)           Upon its receipt of an Assignment and
Acceptance executed by an assigning Lender Party and an assignee, together with
any Note or Notes subject to such assignment, the Administrative Agent shall,
if such Assignment and Acceptance has been completed and is in substantially the
form of Exhibit E hereto, (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the Register
and (iii) give prompt notice thereof to the Funds Administrator.  In the case of any assignment by a Lender,
within five Business Days after its receipt of such notice, the Funds
Administrator, at its own expense, shall execute and deliver to the
Administrative Agent in exchange for the surrendered Note or Notes a new Note
to the order of such Eligible Assignee in an amount equal to the Commitment,
Advances, or obligations to purchase a participation in any Letter of Credit
pursuant to Section 2.03(d) assumed by it under the Facility
pursuant to such Assignment and Acceptance and, if the assigning Lender has
retained a Commitment, a participation in any Advances or any obligation to
purchase a participation in any Letter of Credit pursuant to Section 2.03(d) hereunder,
a new Note to the order of the assigning Lender in an amount equal to the
Commitment, participation in such Advances or obligations to purchase a
participation in any Letter of Credit pursuant to Section 2.03(d) retained
by it hereunder.  Such new Note or Notes
shall be in an aggregate principal amount equal to the aggregate principal
amount of such surrendered Note or Notes, 

 

146

 

shall be dated the Closing
Date of such Assignment and Acceptance and shall otherwise be in substantially
the form of Exhibit A-1 or A-2 hereto, as the case may be.

 

(f)            The Issuing Bank may, with the
consent of the Administrative Agent, and, so long as no Event of Default shall
have occurred and be continuing, with the consent of the Funds Administrator
(such consent not to be unreasonably withheld), assign to an Eligible Assignee
all of its rights and obligations under this Agreement with respect to the
Letters of Credit; provided, however, that (i) each such
assignment shall be to an Eligible Assignee and (ii) the parties to
each such assignment shall execute and deliver to the Administrative
Agent, for its acceptance and recording in the Register, an Assignment and
Acceptance, together with a processing and recordation fee of $3,500.

 

(g)           Each Lender Party may sell
participations to one or more Persons (other than any Loan Party or any of its
Affiliates) in or to all or a portion of its rights and obligations under this
Agreement (including, without limitation, all or a portion of its Commitment,
the Advances owing to it and the Note or Notes (if any) held by it); provided,
however, that (i) such Lender Party’s rights and obligations under
this Agreement (including, without limitation, its Commitments) shall remain
unchanged, (ii) such Lender Party shall remain solely responsible to the
other parties hereto for the performance of such obligations, (iii) such
Lender Party shall remain the holder of any such Note for all purposes of this
Agreement, (iv) the Funds Administrator, the Administrative Agent and the
other Lender Parties shall continue to deal solely and directly with such
Lender Party in connection with such Lender Party’s rights and obligations
under this Agreement, (v) no participant under any such participation
shall have any right to approve any amendment or waiver of any provision of any
Loan Document, or any consent to any departure by any Loan Party therefrom,
except to the extent that such amendment, waiver or consent would reduce the
principal of, or interest (other than increased interest following Default
pursuant to Section 2.07(b)) on, the Notes or any fees or other
amounts payable hereunder, in each case to the extent subject to such
participation, postpone any Termination Date or date fixed for payment of
interest on, the Notes or any fees or other amounts payable hereunder, in each
case to the extent subject to such participation, or release the any   Co-Borrower from its Obligations under Article IX
hereof, and (vi) no Co-Borrower shall 
be subject to any increased liability to any Lender Party pursuant to
this Agreement by virtue of such participation.

 

(h)           Any Lender Party may, in connection
with any assignment or participation or proposed assignment or participation
pursuant to this Section 11.07, disclose to the assignee or
participant or proposed assignee or participant, any information relating to
the Co-Borrowers furnished to such Lender Party by or on behalf of the Funds
Administrator; provided, however, that, prior to any such
disclosure, the assignee or participant or proposed assignee or participant
shall agree to preserve the confidentiality of any Confidential Information
received by it from such Lender Party.

 

(i)            Notwithstanding any other provision
set forth in this Agreement, any Lender Party may at any time create a security
interest in all or any portion of its rights under this Agreement (including,
without limitation, the Advances owing to it and the Note or Notes held by it)
in favor of any Federal Reserve Bank in accordance with Regulation A of the
Board of Governors of the Federal Reserve System.

 

147

 

(j)            Notwithstanding anything to the
contrary contained herein, any Lender that is a fund that invests in bank loans
may create a security interest in all or any portion of the Advances owing to
it and the Note or Notes held by it to the trustee or other representative for
holders of obligations owed, or securities issued, by such fund as security for
such obligations or securities, provided that, unless and until such
trustee or other representative actually becomes a Lender in compliance with
the other provisions of this Section 11.07, (i) no such pledge
shall release the pledging Lender from any of its obligations under the Loan
Documents and (ii) such trustee or representative shall not be entitled to
exercise any of the rights of a Lender under the Loan Documents even though
such trustee or representative may have acquired ownership rights with respect
to the pledged interest through foreclosure or otherwise.

 

Section 11.08  Replacements of Lenders Under Certain
Circumstances.  The Funds
Administrator shall be permitted to replace any Lender that (a) requests
reimbursement for amounts owing pursuant to Section 2.03(g) or
2.10, (b) is affected in the manner described in Section 2.10(c) and
as a result thereof any of the actions described in such Section is required
to be taken, (c) becomes a Defaulting Lender or (d) does not consent
to any proposed change, waiver, discharge or termination of or to any
provisions of this Agreement as contemplated by Sections 11.01(b), 11.01(c) or
11.01(d) and the consent of the Majority Lenders is obtained for
such proposed change, waiver, discharge or termination of or to such provision
of this Agreement, with a replacement bank or other 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) (A) the replacement bank or institution shall
purchase at par all Advances and accrued and unpaid fees and interest thereon
and (B) the Funds Administrator shall pay all other amounts (other than
any disputed amounts) required to be paid to such Lender pursuant to this
Agreement, in each case under this clause (iii) through the date of such
replacement, (iv) the replacement bank or institution shall pay to the
Swingline Bank an amount equal to such replaced Lender’s Pro Rata Share of any
Mandatory Borrowing to the extent that such amount was not previously made
available by the replaced Lender to the Swingline Bank in accordance with Section 2.02(c)),
in each case prior to the date of replacement, (v) the replacement bank or
institution shall pay to each Issuing Bank an amount equal to such replaced
Lender’s participation in Letter of Credit Outstandings (to the extent that at
such time any Letter of Credit Advances have not been reimbursed in accordance
with Section 2.03(e)(i) by such replaced Lender), in each case
prior to the date of replacement, (vi) the replacement bank or
institution, if not already a Lender, shall be reasonably satisfactory to the
Administrative Agent, (vii) the replaced Lender shall be obligated to make
such replacement in accordance with the provisions of Section 11.07
(provided that the Borrower shall be obligated to pay or cause to be
paid the registration and processing fee referred to therein) and (viii) any
such replacement shall not be deemed to be a waiver of any rights that the
Funds Administrator, any Co-Borrower, the Administrative Agent, the
Co-Collateral Agents, the Security Agent, the Swingline Bank, any Issuing Bank
or any other Lender shall have against the replaced Lender.

 

Section 11.09  Execution in Counterparts.  This Agreement may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a
signature page to this Agreement by telecopier shall be effective as
delivery of a manually executed counterpart of this Agreement.

 

148

 

Section 11.10  No Liability of an Issuing Bank.  The Co-Borrowers assume all risks of the acts
or omissions of any beneficiary or transferee of any Letter of Credit with
respect to its use of such Letter of Credit. 
Neither any Issuing Bank nor any of its officers or directors shall be
liable or responsible for:  (a) the
use that may be made of any Letter of Credit or any acts or omissions of any
beneficiary or transferee in connection therewith; (b) the validity,
sufficiency or genuineness of documents, or of any endorsement thereon, even if
such documents should prove to be in any or all respects invalid, insufficient,
fraudulent or forged; (c) payment by any Issuing Bank against presentation
of documents that do not comply with the terms of a Letter of Credit, including
failure of any documents to bear any reference or adequate reference to the
Letter of Credit; or (d) any other circumstances whatsoever in making or
failing to make payment under any Letter of Credit, except that each
Co-Borrower shall have a claim against an Issuing Bank, and such Issuing Bank
shall be liable to such Co-Borrower, to the extent of any direct, but not
consequential, damages suffered by that Co-Borrower which it proves were caused
by such Issuing Bank’s willful misconduct or gross negligence (as determined in
a final, non appealable judgment by a court of competent jurisdiction) in
determining whether documents presented under any Letter of Credit comply with
the terms of the Letter of Credit or willful failure (as determined in a final,
non appealable judgment by a court of competent jurisdiction) to make lawful
payment under a Letter of Credit after the presentation to it of a draft and
certificates strictly complying with the terms and conditions of the Letter of
Credit.  In furtherance and not in
limitation of the foregoing, an Issuing Bank may accept documents that appear
on their face to be in order, without responsibility for further investigation,
regardless of any notice or information to the contrary.

 

Section 11.11  Confidentiality.  (a)  The Administrative Agent, each
Co-Collateral Agent and each Lender Party shall hold all non-public information
furnished by or on behalf of the Co-Borrowers by the Funds Administator in
connection with such Lender Party’s evaluation of whether to become a Lender
Party hereunder or obtained by such Lender Party, any Co-Collateral Agent or
the Administrative Agent pursuant to the requirements of this Agreement (“Confidential
Information”), in accordance with its customary procedure for handling
confidential information of this nature and (in the case of a Co-Collateral
Agent or a Lender Party that is a bank) in accordance with safe and sound
banking practices.  The Administrative
Agent, the Co-Collateral Agents and the Lender Parties shall not disclose any
Confidential Information to any Person without the consent of the Funds
Administrator, other than (i) to the Administrative Agent’s, such
Co-Collateral Agent’s or such Lender Party’s Affiliates and their officers,
directors, trustees, employees, agents and advisors, to pledgees under Section 11.07(i) and
to actual or prospective Eligible Assignees and participants, and then only on
a confidential basis, (ii) as required by any law, rule or regulation
or judicial process and (iii) as requested or required by any state,
federal or foreign authority or examiner regulating such Lender Party, such
Co-Collateral Agent or the Administrative Agent.

 

(b)           The Funds Administrator, each
Co-Borrower, the Administrative Agent, each Co-Collateral Agent and each Lender
Party (and each of their respective officers, directors, employees,
accountants, attorneys and other advisors, agents and representatives) may
disclose to any and all persons, without limitation of any kind, the U.S. tax
treatment and U.S. tax structure of the transactions contemplated by this
Agreement or any other Loan Document and all materials of any kind (including
opinions and other tax analyses) that are provided to any of them  relating to such U.S. tax treatment and U.S.
tax structure.

 

149

 

Section 11.12  Release of Collateral.  (a)  Upon the sale, lease, transfer or
other disposition of any item of Collateral of any Loan Party (including,
without limitation, as a result of the sale, in accordance with the terms of
the Loan Documents, of the Loan Party that owns such Collateral) in accordance
with the terms of the Loan Documents, the Security Agent will, at the
Co-Borrower expense, execute and deliver to such Loan Party such documents as
such Loan Party may reasonably request to evidence the release of such item of
Collateral from the assignment and security interest granted under the
Collateral Documents in accordance with the terms of the Loan Documents.

 

(b)           Upon the sale, lease, transfer or
other disposition of all of the capital stock of any Loan Party that is a
Subsidiary Guarantor in accordance with the terms of the Loan Documents, the
Security Agent will, at the Co-Borrowers’ expense, execute and deliver to such
Loan Party such documents as such Loan Party may reasonably request to evidence
its release as a Subsidiary Guarantor from its Obligations under the Guarantee
and Collateral Agreement in accordance with the terms of the Loan Documents.

 

Section 11.13  USA Patriot Act.  Each Lender Party and each Co-Collateral
Agent that
is subject to the USA Patriot Act and the Administrative Agent (for itself and
not on behalf of any Lender Party) hereby notifies each Loan Party that,
pursuant to the requirements of the USA Patriot Act, it is required to obtain,
verify and record information that identifies such Loan Party, which
information includes the name, address and tax identification number of such
Loan Party and other information regarding such Loan Party that will allow such
Lender Party, such Co-Collateral Agent or the Administrative Agent, as applicable,
to identify such Loan Party in accordance with the USA Patriot Act.  This notice is given in accordance with the
requirements of the USA Patriot Act and is effective as to the Lender Parties
and the Administrative Agent.

 

Section 11.14  OTHER LIENS ON COLLATERAL; TERMS OF
INTERCREDITOR AGREEMENT; ETC.  (a) EACH LENDER PARTY UNDERSTANDS,
ACKNOWLEDGES AND AGREES THAT LIENS SHALL BE CREATED ON THE COLLATERAL PURSUANT
TO THE SENIOR SECURED NOTES DOCUMENTS, WHICH LIENS SHALL BE SUBJECT TO TERMS
AND CONDITIONS OF THE INTERCREDITOR AGREEMENT. 
PURSUANT TO THE EXPRESS TERMS OF THE INTERCREDITOR AGREEMENT, IN
THE EVENT OF ANY CONFLICT BETWEEN THE TERMS OF THE INTERCREDITOR AGREEMENT AND
ANY OF THE LOAN DOCUMENTS, THE PROVISIONS OF THE INTERCREDITOR AGREEMENT SHALL
GOVERN AND CONTROL.

 

(b)           EACH LENDER PARTY AUTHORIZES AND
INSTRUCTS THE SECURITY AGENT TO ENTER INTO THE INTERCREDITOR AGREEMENT ON
BEHALF OF THE LENDER PARTIES IN ACCORDANCE WITH THIS AGREEMENT, AND TO TAKE ALL
ACTIONS (AND EXECUTE ALL DOCUMENTS) REQUIRED (OR DEEMED ADVISABLE) BY IT IN
ACCORDANCE WITH THE TERMS OF THE INTERCREDITOR AGREEMENT.

 

(c)           THE PROVISIONS OF THIS SECTION 11.14
ARE NOT INTENDED TO SUMMARIZE ALL RELEVANT PROVISIONS OF THE INTERCREDITOR 

 

150

 

AGREEMENT, THE FORM OF
WHICH IS ATTACHED AS AN EXHIBIT TO THIS AGREEMENT.  REFERENCE MUST BE MADE TO THE INTERCREDITOR
AGREEMENTS ITSELF TO UNDERSTAND ALL TERMS AND CONDITIONS THEREOF.  EACH LENDER PARTY IS RESPONSIBLE FOR MAKING
ITS OWN ANALYSIS AND REVIEW OF THE INTERCREDITOR AGREEMENT AND THE TERMS AND
PROVISIONS THEREOF, AND NEITHER THE ADMINISTRATIVE AGENT, THE SECURITY AGENT
NOR ANY OF THEIR RESPECTIVE AFFILIATES MAKES ANY REPRESENTATION TO ANY LENDER
PARTY AS TO THE SUFFICIENCY OR ADVISABILITY OF THE PROVISIONS CONTAINED IN THE
INTERCREDITOR AGREEMENT.

 

Section 11.15  Jurisdiction, Etc.  (a)  Each of the parties hereto hereby
irrevocably and unconditionally submits, for itself and its property, to the
exclusive jurisdiction of any New York State court or federal court of the
United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this
Agreement or any of the other Loan Documents to which it is a party, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in any such New York
State court or, to the extent permitted by law, in such federal court.  Each Co-Borrower irrevocably consents to the
service of any and all process in any such action or proceeding by the mailing
of copies of such process by registered or certified mail (or any substantially
similar form of mail), postage prepaid, to the Funds Administrator at its
address specified in Section 11.02 and 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.  Each of the parties hereto
agrees that a final judgment in any such action or proceeding shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any
other manner provided by law.  Nothing in
this Agreement shall affect any right that the Administrative Agent, the
Security Agent or any Lender Party may otherwise have to bring any action or
proceeding relating to this Agreement or any of the other Loan Documents in the
courts of any other jurisdiction.

 

(b)           Each of the parties hereto
irrevocably and unconditionally waives, to the fullest extent it may legally
and effectively do so, any objection that it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Agreement or any of the other Loan Documents to which it is a party in any
New York State or federal court.  Each of
the parties hereto hereby irrevocably waives, to the fullest extent permitted
by law, the defense of an inconvenient forum to the maintenance of such action
or proceeding in any such court.

 

Section 11.16  Judgment.  (a)  If for the purposes of obtaining
judgment in any court it is necessary to convert a sum due hereunder or under
any of the other Loan Documents in U.S. Dollars into another currency, the
parties hereto agree, to the fullest extent that they may effectively do so,
that the rate of exchange used shall be that at which in accordance with normal
banking procedures the Administrative Agent could purchase U.S. Dollars with
such other currency at DBTCA on the Business Day preceding that on which final
judgment is given.

 

(b)           The obligation of each Co-Borrower in
respect of any sum due from it to any Lender Party, the Administrative Agent,
the Co-Collateral Agents or the Security Agent 

 

151

 

hereunder
or under any of the other Loan Documents held by such Lender Party shall,
notwithstanding any judgment in a currency other than U.S. Dollars, be
discharged only to the extent that on the Business Day of receipt by such
Lender Party, or the Administrative Agent or Co-Collateral Agents or the
Security Agent (as the case may be) of any sum adjudged to be so due in such
other currency such Lender Party, or the Administrative Agent or the
Co-Collateral Agents or the Security Agent (as the case may be) may in
accordance with normal banking procedures purchase U.S. Dollars with such other
currency; if the U.S. Dollars so purchased are less than the sum originally due
by such Co-Borrower to such Lender Party, or the Administrative Agent
Co-Collateral Agents or the Security Agent (as the case may be) in U.S.
Dollars, such Co-Borrower agrees, as a separate obligation and notwithstanding
any such judgment, to indemnify such Lender Party, or the Administrative Agent
or Co-Collateral Agents or the Security Agent (as the case may be) against such
loss, and if the U.S. Dollars so purchased exceed the sum originally due by the
Borrower to any Lender Party, or the Administrative Agent or Co-Collateral
Agents or the Security Agent (as the case may be) in U.S. Dollars, such Lender
Party, or the Administrative Agent or Co-Collateral Agents or the Security Agent
(as the case may be) agrees to remit to such Co-Borrower such excess.

 

Section 11.17  Governing Law.  THIS AGREEMENT AND THE
LENDER NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK, UNITED STATES.

 

Section 11.18  Waiver of Jury Trial.  EACH OF THE CO-BORROWERS,
THE ADMINISTRATIVE AGENT, THE CO-COLLATERAL AGENTS, THE SECURITY AGENT AND THE
OTHER LENDER PARTIES IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF OR RELATING TO ANY OF THE LOAN DOCUMENTS, THE
ADVANCES OR THE ACTIONS OF THE ADMINISTRATIVE AGENT, THE CO-COLLATERAL AGENTS,
THE SECURITY AGENT OR ANY OTHER LENDER PARTY IN THE NEGOTIATION,
ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF.

 

Section 11.19  Approved Hedge Agreement Obligations.  (a)  At any time after the Borrower
enters into a Hedge Agreement permitted by this Agreement with a Secured Hedge
Agreement Counterparty, if the Borrower and the Secured Hedge Agreement
Counterparty desire that the monetary obligations in respect of such Hedge
Agreement shall be designated and treated as “Approved Hedge Agreement
Obligations” hereunder having rights in respect of the payment of proceeds of
the Collateral in accordance with the waterfall provisions set forth in Section 9.14
(each such monetary obligation in respect of such Hedge Agreement, so
designated, an “Approved Hedge Agreement Obligation”), (i) the
Borrower shall notify the Administrative Agent in writing (which notice the
Administrative Agent shall promptly provide to the Collateral Agent) (to be
acknowledged by the Administrative Agent and the Security Agent) that it
desires such Hedge Agreement to be treated as an Approved Hedge Agreement Obligation,
(ii) the Secured Hedge Agreement Counterparty shall have delivered written
notice thereof to the Administrative Agent and the Security Agent (to be
acknowledged by the Administrative Agent and the Security Agent) stating the
maximum amount of the Borrower’s liabilities in respect thereof and the then
aggregate marked to market exposure of the Borrower thereunder, and (iii) 

 

152

 

the
Co-Collateral Agents shall establish the Hedging Reserve with respect thereto
and agree to respond promptly to inquiries from any Secured Hedge Agreement
Counterparty with respect to the amount of such Hedging Reserves.

 

(b)        Until such time as the Borrower and the
Secured Hedge Agreement Counterparty deliver (and the Administrative Agent and
the Security Agent acknowledge) such notices as described in Section 11.19(a) above,
such Hedge Agreement shall not constitute an Approved Hedge Agreement
Obligation.

 

(c)         Notwithstanding any such designation of
a Hedge Agreement as an Approved Hedge Agreement Obligation, no counterparty in
respect of any such Approved Hedge Agreement Obligations shall have any voting
or approval rights hereunder (or be deemed a Lender) solely by virtue of its
status as the provider of such Hedge Agreement or the beneficiary of the
Secured Hedging Obligations owing thereunder, nor shall its consent be required
(other than in its capacity as a Lender to the extent applicable) for any
matter hereunder or under any of the other Loan Documents, including, without
limitation, as to any matter relating to the Collateral or the release of
Collateral or any Loan Parties.  The
Administrative Agent and the Security Agent accept no responsibility and shall
have no liability for the calculation of the exposure owing by the Borrower
under any such Hedge Agreement, and shall be entitled in all cases to rely on
the applicable counterparty and the Borrower party to such Hedge Agreement for
the calculation thereof.

 

(d)        Each Secured Hedge Agreement
Counterparty party to a Hedge Agreement designated as an Approved Hedge
Agreement Obligation hereunder and the Borrower party to any such Hedge
Agreement each agrees to provide the Administrative Agent and the Security
Agent with the calculations of all such exposures and reserves, if any, at such
times as the Administrative Agent or the Security Agent shall reasonably
request, and in any event, not less than quarterly (unless otherwise agreed to
by the Administrative Agent and the Security Agent).

 

ARTICLE XII

 

Nature
of Obligations

 

Section 12.01  Nature of Obligations.  Notwithstanding anything to the contrary
contained elsewhere in this Agreement, it is understood and agreed by the
various parties to this Agreement that all Obligations pursuant to the Loan
Documents to repay principal of, interest on, and all other amounts with
respect to, all Revolving Advances, Swingline Advances, Letter of Credit
Advances, Agent Advances, Letters of Credit and all other Obligations pursuant
to this Agreement and each other Loan Document (including, without limitation,
all fees, indemnities, taxes and other Obligations in connection therewith or
in connection with the related Commitments) shall constitute the joint and
several obligations of each of the Co-Borrowers.  In addition to the direct (and joint and
several) obligations of the Co-Borrowers with respect to the Obligations as
described above, all such Obligations shall be guaranteed pursuant to, and in
accordance with the terms of, the Guarantee and Collateral Agreement, provided
that the obligations of a Co-Borrower with respect to the Obligations as
described above shall not be 

 

153

 

limited
by any provision of the Guarantee and Collateral Agreement entered into by such
Co-Borrower.

 

Section 12.02  Independent Obligation.  The Obligations of each Co-Borrower are
independent of the Obligations pursuant to the Loan Documents of each other
Co-Borrower or any other Loan Party under its guarantee under the Guarantee and
Collateral Agreement of such Obligations under the Loan Documents, and a
separate action or actions may be brought and prosecuted against each
Co-Borrower, whether or not any other Co-Borrower or any other Loan Party is
joined in any such action or actions. 
Each Co-Borrower waives, to the fullest extent permitted by law, the
benefit of any statute of limitations affecting its liability hereunder or the
enforcement thereof.  Any payment by any
Co-Borrower or other circumstance which operates to toll any statute of
limitations as to any Co-Borrower shall, to the fullest extent permitted by
law, operate to toll the statute of limitations as to each Co-Borrower.

 

Section 12.03  Authorization.  Each of the Co-Borrowers authorizes the
Administrative Agent, the Security Agent, the Swingline Bank, the Co-Collateral
Agents, each Issuing Bank and the Lenders without notice or demand (except as
shall be required by applicable statute and cannot be waived), and without
affecting or impairing its liability hereunder, from time to time to, to the maximum
extent permitted by applicable law and the Loan Documents to:

 

(a)         exercise or refrain from exercising any
rights against any other Co-Borrower or any other Loan Party or others or
otherwise act or refrain from acting;

 

(b)        release or substitute any other
Co-Borrower, endorsers, other Loan Parties or other obligors;

 

(c)         settle or compromise any of the
Obligations under the Loan Documents of any other Co-Borrower or any other Loan
Party, any security therefor or any liability (including any of those hereunder)
incurred directly or indirectly in respect thereof or hereof, and may
subordinate the payment of all or any part thereof to the payment of any
liability (whether due or not) of any Co-Borrower to its creditors other than
the Lenders;

 

(d)        apply any sums paid by any other
Co-Borrower or any other Person, howsoever realized to any liability or
liabilities of such other Co-Borrower or other Person regardless of what
liability or liabilities of such other Co-Borrower or other Person remain
unpaid; and/or

 

(e)         consent to or waive any breach of, or
act, omission or default under, this Agreement or any of the instruments or
agreements referred to herein, or otherwise, by any other Co-Borrower or any
other Person.

 

Section 12.04  Reliance.  It is not necessary for the Administrative
Agent, the Security Agent, the Swingline Bank, any Issuing Bank, any
Co-Collateral Agent or any Lender to inquire into the capacity or powers of any
Co-Borrower or any other U.S. Subsidiary or the officers, directors, members, partners
or agents acting or purporting to act on behalf of any Co-Borrower, and any
Obligations made or created in reliance upon the professed exercise of such 

 

154

 

powers
shall constitute the joint and several obligations of the respective
Co-Borrowers hereunder.

 

Section 12.05  Contribution; Subrogation.  No Co-Borrower shall exercise any rights of
contribution or subrogation with respect to any other Co-Borrower as a result
of payments made by it hereunder, in each case unless and until (i) the
Total Commitment and all Letters of Credit have been terminated and (ii) all
of the Obligations pursuant to the Loan Documents have been paid in full in
cash.  To the extent that any Loan Party
shall be required to pay a portion of the Obligations pursuant to the Loan
Documents which shall exceed the amount of loans, advances or other extensions
of credit received by such Loan Party and all interest, costs, fees and
expenses attributable to such loans, advances or other extensions of credit,
then such Loan Party shall be reimbursed by the other Loan Parties for the
amount of such excess, subject to the restrictions of the previous
sentence.  This Section 12.05
is intended only to define the relative rights of the Loan Parties, and nothing
set forth in this Section 12.05 is intended to or shall impair the
obligations of each Loan Party to pay the Obligations pursuant to the Loan
Documents as and when the same shall become due and payable in accordance with
the terms hereof.

 

Section 12.06  Waiver.  Each Co-Borrower waives any right to require
the Administrative Agent, the Security Agent, the Swingline Bank, the
Co-Collateral Agents, any Issuing Bank or the Lenders to (i) proceed
against any other Co-Borrower, any other Loan Party or any other party, (ii) proceed
against or exhaust any security held from any Co-Borrower, any other Loan Party
or any other party or (iii) pursue any other remedy in the Administrative
Agent’s, the Security Agent’s, the Swingline Bank’s, any Co-Collateral Agent’s,
any Issuing Bank’s or any Lender’s power whatsoever.  Each Co-Borrower waives any defense based on
or arising out of suretyship or any impairment of security held from any
Co-Borrower, any other Loan Party or any other party or on or arising out of
any defense of any other Co-Borrower, any other Loan Party or any other party
other than payment in full in cash of its Obligations, including, without
limitation, any defense based on or arising out of the disability of any other
Co-Borrower, any other Loan Party or any other party, or the unenforceability
of its Obligations or any part thereof from any cause, or the cessation from
any cause of the liability of any other Co-Borrower, in each case other than as
a result of the payment in full in cash of its Obligations.

 

Section 12.07  Rights and Obligations.  The obligations of the Swingline Bank, each
Issuing Bank and each Lender under this Agreement bind each of them
severally.  Failure by the Swingline
Bank, any Issuing Bank or any Lender, as the case may be, to perform its
obligations under this Agreement does not affect the obligations of any other
party under this Agreement.  The
Swingline Bank, each Issuing Bank and each Lender is not responsible for the
obligations of the Swingline Bank, any other Issuing Bank or any other Lender,
as the case may be, under this Agreement. 
The rights, powers and remedies of the Swingline Bank, each Issuing Bank
and each Lender in connection with this Agreement are separate and independent
rights, powers and remedies and any debt arising under this Agreement to or for
the account of the Swingline Bank, any Issuing Bank or any Lender from a Loan
Party is a separate and independent debt.

 

*     *     *

 

155

 

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

 

	
   

  	
  ACCURIDE CORPORATION, as Co-Borrower and as Funds
  Administrator

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  William M. Lasky

  
	
   

  	
   

  	
  Name:
  William M. Lasky

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
  ACCURIDE
  CUYAHOGA FALLS, INC.

  
	
   

  	
  ACCURIDE
  DISTRIBUTING, LLC

  
	
   

  	
  ACCURIDE
  EMI, LLC

  
	
   

  	
  AOT
  INC.

  
	
   

  	
  ERIE
  LAND HOLDING, INC.

  
	
   

  	
  BOSTROM
  HOLDINGS, INC.

  
	
   

  	
  BOSTROM
  SEATING, INC.

  
	
   

  	
  BOSTROM
  SPECIALTY SEATING, INC.

  
	
   

  	
  BRILLION
  IRON WORKS, INC.

  
	
   

  	
  FABCO
  AUTOMOTIVE CORPORATION

  
	
   

  	
  GUNITE
  CORPORATION

  
	
   

  	
  IMPERIAL
  GROUP HOLDING CORP. - 1

  
	
   

  	
  IMPERIAL
  GROUP HOLDING CORP. - 2

  
	
   

  	
  JAII
  MANAGEMENT COMPANY

  
	
   

  	
  TRANSPORTATION
  TECHNOLOGIES INDUSTRIES, INC.

  
	
   

  	
  TRUCK
  COMPONENTS INC.,

  
	
   

  	
  each
  as a Co-Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William M. Lasky

  
	
   

  	
   

  	
  Name:
  William M. Lasky

  
	
   

  	
   

  	
  Title:
  Authorized Officer

  

 

 

	
   

  	
  ACCURIDE
  ERIE L.P.,

  
	
   

  	
  as
  a Co-Borrower

  
	
   

  	
   

  
	
   

  	
  By:
  AKW GENERAL PARTNER L.L.C.,

  
	
   

  	
   

  	
  as
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:
  ACCURIDE CORPORATION,

  
	
   

  	
   

  	
   

  	
  as
  Sole Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/
  William M. Lasky

  
	
   

  	
   

  	
   

  	
   

  	
  Name:
  William M. Lasky

  
	
   

  	
   

  	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  ACCURIDE
  HENDERSON LIMITED LIABILITY COMPANY

  
	
   

  	
  AKW
  GENERAL PARTNER L.L.C.,

  
	
   

  	
  each
  as a Co-Borrower

  
	
   

  	
   

  
	
   

  	
  By:
  ACCURIDE CORPORATION,

  
	
   

  	
   

  	
  as
  Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  William M. Lasky

  
	
   

  	
   

  	
   

  	
  Name:
  William M. Lasky

  
	
   

  	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  IMPERIAL
  GROUP, L.P.,

  
	
   

  	
  as
  a Co-Borrower

  
	
   

  	
   

  	
   

  
	
   

  	
  By: IMPERIAL GROUP HOLDING CORP. - 1, its General
  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  William M. Lasky

  
	
   

  	
   

  	
   

  	
  Name:
  William M. Lasky

  
	
   

  	
   

  	
   

  	
  Title:
  President

  

 

 

	
   

  	
  DEUTSCHE
  BANK TRUST COMPANY AMERICAS, as Administrative Agent, Security Agent,
  Co-Collateral Agent, Swingline Bank, Initial Issuing Bank and Initial
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Omayra Laucella

  
	
   

  	
   

  	
  Name:
  Omayra Laucella

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Paul O’Leary

  
	
   

  	
   

  	
  Name:
  Paul O’Leary

  
	
   

  	
   

  	
  Title:
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as
  Initial Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Bill O’Daly

  
	
   

  	
   

  	
  Name:
  Bill O’Daly

  
	
   

  	
   

  	
  Title:
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Christopher Reo Day

  
	
   

  	
   

  	
  Name:
  Christopher Reo Day

  
	
   

  	
   

  	
  Title:
  Associate

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SUNTRUST
  BANK,

  
	
   

  	
   

  	
  as
  Co-Collateral Agent and Initial Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Mark Bohntinsky

  
	
   

  	
   

  	
  Name:
  Mark Bohntinsky

  
	
   

  	
   

  	
  Title:
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS
  FARGO CAPITAL FINANCE, LLC,

  
	
   

  	
   

  	
  as
  Co-Collateral Agent and Initial Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Jeff Royston

  
	
   

  	
   

  	
  Name:
  Jeff Royston

  
	
   

  	
   

  	
  Title:
  Vice PresidentExhibit 10.2

 

CONSULTING EMPLOYEE AGREEMENT

 

THIS CONSULTING EMPLOYEE AGREEMENT (this “Agreement”) is made
and entered into as of June 30, 2010 by and between Craig E. Paylor (“Consulting
Employee”), and Oshkosh Corporation, a Wisconsin corporation, together with its
successors, assigns and Affiliates (the “Company”) (the Company, together with
Consulting Employee, referred to as the “Parties”), as follows:

 

1.                                       Consulting
Employee Services.  Commencing on May 1,
2011 and for the Term of Consulting Employee’s engagement under this Agreement,
Consulting Employee agrees to perform such duties and services for or on behalf
of the Company or any of its affiliates as may be reasonably requested of him
by the Chairman and Chief Executive Officer and President and Chief Operating
Officer of the Company, relating to the Company and its affiliates (the “Services”).  Consulting Employee shall devote his best
efforts and such time as is necessary to accomplish the Services requested of
him under this Agreement, provided, however, that Consulting Employee shall not
render services for more than a total of thirty (30) business days during the
Term of this engagement.

 

2.                                       Term.  The Term of Consulting Employee’s engagement
under this Agreement shall commence as of May 1, 2011, and terminate on April 30,
2013.  The term may be renewed or
extended only by the written agreement of the Company and Consulting Employee.

 

3.                                       Compensation.  In exchange for Consulting Employee providing
Services to the Company and/or its affiliates during the Term, and absent any
material breach of this Agreement by Consulting Employee, the Company agrees to
pay Consulting Employee fees based on the following schedule:

 

A.                                   For the period
of May 1, 2011 through April 30, 2012, at an annual rate of $300,000.00
(Three Hundred Thousand and No/100 Dollars), less applicable local, state and
federal tax withholding.  Payment of said
consulting fees shall be in accordance with the customary accounts pay
practices of the Company.

 

B.                                     For the period
of May 1, 2012 through April 30, 2013, at an annual rate of
$225,000.00 (Two Hundred Twenty-Five Thousand and No/100 Dollars), less
applicable local, state and federal tax withholding.   Payment of said consulting fees shall be in
accordance with the customary accounts pay practices of the Company.

 

C.                                     The Company
shall promptly reimburse  reasonable,
documented travel and other out-of-pocket expenses incurred by Consulting
Employee in the performance of the Services.

 

4.                                       Relationship.  Both the Company and Consulting Employee
acknowledge and agree that Consulting Employee’s engagement and performance of
services for the Company shall be performed in a manner consistent with
generally-recognized facilities and methods of performance utilized by
independent contractors, including, without limitation, providing his/her own
place of work, office equipment, and any other tools or facilities required to
perform the duties of Consulting Employee. 
Consulting Employee, therefore, shall not have access to, or use

 

1

 

of, Company office facilities, computer systems,
communications systems (including, without limitation, email, mobile phone,
facsimile and other such systems) and other such facilities and tools.  Employee further acknowledges and agrees
that, as a result of providing the Services, he has no right or entitlement to,
and shall make no claim for coverage, awards, service credit(s) or other
credit(s), or benefits which the Company makes available to any of its regular
employees (e.g., non-Consulting employees), under:

 

A.                                   Any medical,
dental, vision or other health care benefit under any plan offered by the
Company to its employees;

 

B.                                     Any type or
form of flexible spending account used for any purpose;

 

C.                                     Any qualified
or non-qualified retirement or pension plan(s); or

 

D.                                    Any bonus plan,
deferred compensation plan, severance plan, employee stock ownership plan,
vacation policy, sick leave policy, travel insurance policy, death benefit plan
or policy, workers compensation benefit plan or policy, life insurance plan or
policy, employee assistance program, motor vehicle insurance plan or policy,
general liability insurance policy, coverage or plan, or any other fringe
benefits, rights, insurance, incentives, or benefit policy or plan applicable
to regular common law employees (e.g., non-Consulting Employees) of the
Company.

 

Notwithstanding subsections A through D of this
Section, Consulting Employee shall continue to remain eligible for and receive
any benefits to which he is entitled as a result of his previous service as
regular employee of the Company and his retirement from the Company, as
provided by the applicable Plan Documents.

 

5.                                       Authority.  Consulting Employee  shall not have any right or authority to bind
the Company or any of its affiliates in any manner, nor assume or create any
obligation or responsibility, express or implied, on behalf of or in the name
of the Company or any of its affiliates, and Consulting Employee shall not make
any contrary representation to any third party.

 

6.                                       Restrictive
Covenants; Confidentiality.  Consulting Employee agrees to abide by the
Restrictive Covenants and Confidentiality provisions set forth in the
Confidentiality and Loyalty Agreement between the parties, dated June 30,
2010 which is incorporated herein by reference. 
To the extent that the restrictive covenants contained in the
Confidentiality and Loyalty Agreement have expired as of the date of this
Agreement or will expire during the Term of this Agreement, the parties agree that
such restrictive covenants shall be binding on Consulting Employee until the
expiration of the Term of this Agreement or any subsequent extensions of this
Agreement.

 

7.                                       Return
of Property; Cooperation in Third-Party Disputes.    Consulting Employee shall deliver to the
Company all originals and copies of any Company writings, data, software, or
equipment, if any, that may be in his possession, by request of  the Company, at any time.  During the Term, Consulting Employee shall
cooperate with the Company, its affiliates and each of their respective
attorneys or other legal representatives in connection with any claim,
litigation, or legal proceeding which is now pending or may hereafter be
brought against the Company and/or any of its affiliates, by any third
party.  The Company shall promptly
reimburse

 

2

 

Consulting Employee for Consulting Employee’s
reasonable, documented travel and other out-of-pocket expenses that Consulting
Employee may incur in performing these obligations.

 

8.                                       Notice.  Any and all notice given hereunder shall be
in writing and shall be deemed to have been duly given when deposited, postage
paid, with a generally recognized overnight delivery service or the U.S. Postal
Service.   In each case notice will be
sent :

 

	
  If to the Company:

  	
   

  	
  If to Consulting Employee:

  
	
   

  	
   

  	
   

  
	
  Oshkosh Corporation

  	
   

  	
  Mr. Craig E. Paylor

  
	
  ATTN: General Counsel

  	
   

  	
   

  
	
  2307 Oregon Street

  	
   

  	
   

  
	
  Oshkosh, WI 54902

  	
   

  	
   

  

 

Any
Party may change its address for notice purposes by duly giving notice to the
other Party pursuant to this Section 8.

 

9.                                       Entire
Agreement; Amendment.  This
Agreement, and any other agreement specifically incorporated by reference
herein, represents the entire agreement and understanding between the Parties
regarding their consulting relationship, and this Agreement supersedes any
representations, negotiations, discussions or prior agreements between the
parties regarding the subject matter of this Agreement.  Any amendment of this Agreement must be in
writing signed by Consulting Employee and an authorized representative of the
Company.

 

10.                                 Governing
Law; Waiver; Assignment.  This
Agreement shall be governed and construed under the laws of the State of
Wisconsin, without regard to its conflict of laws rules.  No waiver of any breach of any term or
provision of this Agreement shall be construed to be, nor shall be, a waiver of
any other breach of this Agreement. 
Consulting Employee may not assign any of his obligations or duties
under this Agreement.

 

11.                                 Survival;
Severability.  The rights
and obligations contained in this Agreement shall survive the expiration or
termination of this Agreement or of Consulting Employee’s consulting
relationship with the Company. The Parties understand and agree that if any
provision of this Agreement is adjudicated to be invalid or unenforceable, a
court of competent jurisdiction may reform such provision(s), and the remainder
of this Agreement shall remain fully enforceable.

 

IN WITNESS WHEREOF, this Agreement is entered into
by the Parties hereto effective as of the date first indicated above.

 

	
  OSHKOSH COPORATION

  	
   

  	
  CRAIG E. PAYLOR

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Charles L. Szews

  	
   

  	
  /s/ Craig E. Paylor

  
	
   

  	
   

  	
   

  
	
  Its: President and Chief Operating Officer

  	
   

  	
   

  
				

 

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