Document:

Exhibit 10.1

 

EIGHTEENTH AMENDMENT

TO

SECOND AMENDED AND RESTATED

LIMITED PARTNERSHIP AGREEMENT

OF

CORPORATE OFFICE PROPERTIES, L.P.

 

THIS EIGHTEENTH AMENDMENT (this “Amendment”) to the Second Amended and
Restated Limited Partnership Agreement of Corporate Office Properties, L.P., a
Delaware limited partnership (the “Partnership”) is made and entered into as of
April 18, 2005, by the undersigned.

 

Recitals

 

A.                                   The Partnership is a limited partnership
organized under the Delaware Revised Uniform Limited Partnership Act and
governed by that certain Second Amended and Restated Limited Partnership
Agreement dated as of December 7, 1999, as amended to the date hereof (as
amended, the “Partnership Agreement”).

 

B.                                     The sole general partner of the
Partnership is Corporate Office Properties Trust, a real estate investment
trust formed under the laws of the State of Maryland (the “General Partner”).

 

C.                                     Pursuant to Section 11.1(b)(iii),
the General Partner desires to amend the Partnership Agreement to reflect the
admission, substitution, termination and/or withdrawal of various limited
partners in accordance with the terms of the Partnership Agreement.

 

NOW THEREFORE, the General Partner, intending to be legally bound,
hereby amends the Partnership Agreement as follows, effective as of the date
set forth above.

 

1.                                       Exhibit
1, Schedule of Partners, as attached hereto and by this reference made a
part hereof, is hereby substituted for and intended to replace any prior
Exhibit 1 attached to a prior Amendment to the Partnership Agreement, and as
attached hereto shall be a full and complete listing of all the general and
limited partners of the Partnership as of the date of this Amendment, the same
being intended and hereby superceding all prior Exhibit 1 listings.

 

IN WITNESS WHEREOF, the General Partner has executed this Amendment as
of the day and year first above written.

 

	
   

  	
  CORPORATE OFFICE PROPERTIES TRUST, a

  Maryland Real Estate Investment Trust

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roger A. Waesche,
  Jr.

  	
   

  
	
   

  	
  Name: Roger A. Waesche,
  Jr.

  
	
   

  	
  Title:
  Executive Vice President

  

 

 

Exhibit 1

 

Schedule of Partners

 

	
   

  	
   

  	
  Common Units of

  Partnership Units

  	
   

  	
  Series E

  Preferred

  Units

  	
   

  	
  Series F

  Preferred

  Units

  	
   

  	
  Series G

  Preferred 

  Units

  	
   

  	
  Series H

  Preferred

  Units

  	
   

  	
  Series I

  Preferred

  Units

  	
   

  
	
  General Partner

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Corporate Office Properties Trust

  	
   

  	
  34,979,382

  	
   

  	
  1,150,000

  	
   

  	
  1,425,000

  	
   

  	
  2,200,000

  	
   

  	
  2,000,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Limited
  Partners and Preferred Limited Partners

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jay H. Shidler

  	
   

  	
  452,878

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shidler Equities, L.P.

  	
   

  	
  2,995,439

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Clay W. Hamlin, III

  	
   

  	
  566,492

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LBCW Limited Partnership

  	
   

  	
  3,031,107

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Robert L. Denton

  	
   

  	
  414,910

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  James K. Davis

  	
   

  	
  51,589

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  John E. De B. Blockey, Trustee of the John E. de B.
  Blockey Living Trust dated 9/12/88

  	
   

  	
  300,625

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Frederick K. Ito Trust

  	
   

  	
  29,140

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  June Y. I. Ito Trust

  	
   

  	
  29,135

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  RP Investments, LLC

  	
   

  	
  150,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Denise J. Liszewski

  	
   

  	
  28,333

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Samuel Tang

  	
   

  	
  4,389

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lawrence J. Taff

  	
   

  	
  13,733

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kimberly F. Aquino

  	
   

  	
  2,937

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M.O.R. XXIX Associates Limited Partnership

  	
   

  	
  148,381

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M.O.R. 44 Gateway Associates Limited Partnership

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  John Parsinen

  	
   

  	
  90,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M.O.R. Commons Limited Partnership

  	
   

  	
  7

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  John Edward De Burgh Blockey and Sanda Juanita
  Blockey

  	
   

  	
  10,476

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Anthony Muscatello

  	
   

  	
  90,905

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lynn Hamlin

  	
   

  	
  121,411

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Baldwin School

  	
   

  	
  200

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  National Prostate Cancer Coalition

  	
   

  	
  400

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Episcopal Academy

  	
   

  	
  250

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  University of Pennsylvania, Friends of Penn Tennis

  	
   

  	
  400

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Housing Affiliates, Inc.

  	
   

  	
  4,402

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Reingle Corp.

  	
   

  	
  730

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Joseph Tawil

  	
   

  	
  2,160

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Lovejoy Trust

  	
   

  	
  59,528

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Century Trust

  	
   

  	
  59,528

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A. Charles Wilson & Betty S. Wilson Trust

  	
   

  	
  5,908

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Harold & Renee Holland

  	
   

  	
  4,320

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Irwin Hoffman

  	
   

  	
  1,880

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Carl & Dolores Wright Revocable Trust

  	
   

  	
  2,160

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rouse 1988 Trust

  	
   

  	
  2,160

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TRC Associates Limited Partnership

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  352,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  43,655,296

  	
   

  	
  1,150,000

  	
   

  	
  1,425,000

  	
   

  	
  2,200,000

  	
   

  	
  2,000,000

  	
   

  	
  352,000Exhibit 10.1

 

EXECUTION COPY

 

$275,000,000

 

CREDIT
AGREEMENT

 

among

 

PROTECTION
ONE, INC.,

 

PROTECTION ONE
ALARM MONITORING, INC.,

 

as Borrower,

 

The Several
Lenders

 

from Time to
Time Parties Hereto,

 

LEHMAN
COMMERCIAL PAPER INC.,

 

as Syndication
Agent,

 

HARRIS NESBITT
FINANCING, INC., LASALLE BANK NATIONAL ASSOCIATION, and

U.S. BANK NATIONAL ASSOCIATION,

 

as Co-Documentation
Agents,

 

and

 

BEAR STEARNS
CORPORATE LENDING INC.,

 

as
Administrative Agent

 

 

Dated as of April 18,
2005

 

 

 

 

BEAR, STEARNS & CO. INC. and LEHMAN
BROTHERS INC.,

as Joint Lead Arrangers and Joint Bookrunners

 

 

TABLE OF CONTENTS

 

	
  SECTION 1. DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  1.1.

  	
  Defined
  Terms

  	
   

  
	
   

  	
  1.2.

  	
  Other
  Definitional Provisions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2. AMOUNT AND TERMS OF TERM
  COMMITMENTS

  	
   

  
	
   

  	
   

  
	
   

  	
  2.1.

  	
  Term
  Commitments

  	
   

  
	
   

  	
  2.2.

  	
  Procedure
  for Term Loan Borrowing

  	
   

  
	
   

  	
  2.3.

  	
  Repayment
  of Term Loans

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3. AMOUNT AND TERMS OF
  REVOLVING COMMITMENTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1.

  	
  Revolving
  Commitments

  	
   

  
	
   

  	
  3.2.

  	
  Procedure
  for Revolving Loan Borrowing

  	
   

  
	
   

  	
  3.3.

  	
  Swingline
  Commitment

  	
   

  
	
   

  	
  3.4.

  	
  Procedure
  for Swingline Borrowing; Refunding of Swingline Loans

  	
   

  
	
   

  	
  3.5.

  	
  Commitment
  Fees, etc.

  	
   

  
	
   

  	
  3.6.

  	
  Termination
  or Reduction of Revolving Commitments

  	
   

  
	
   

  	
  3.7.

  	
  L/C
  Commitment

  	
   

  
	
   

  	
  3.8.

  	
  Procedure for
  Issuance of Letter of Credit

  	
   

  
	
   

  	
  3.9.

  	
  Fees and
  Other Charges

  	
   

  
	
   

  	
  3.10.

  	
  L/C
  Participations

  	
   

  
	
   

  	
  3.11.

  	
  Reimbursement
  Obligation of the Borrower

  	
   

  
	
   

  	
  3.12.

  	
  Obligations
  Absolute

  	
   

  
	
   

  	
  3.13.

  	
  Letter of
  Credit Payments

  	
   

  
	
   

  	
  3.14.

  	
  Applications

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4. GENERAL PROVISIONS
  APPLICABLE TO LOANS AND LETTERS OF CREDIT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.1.

  	
  Optional
  Prepayments

  	
   

  
	
   

  	
  4.2.

  	
  Mandatory
  Prepayments and Commitment Reductions

  	
   

  
	
   

  	
  4.3.

  	
  Conversion
  and Continuation Options

  	
   

  
	
   

  	
  4.4.

  	
  Limitations
  on Eurodollar Tranches

  	
   

  
	
   

  	
  4.5.

  	
  Interest
  Rates and Payment Dates

  	
   

  
	
   

  	
  4.6.

  	
  Computation
  of Interest and Fees

  	
   

  
	
   

  	
  4.7.

  	
  Inability
  to Determine Interest Rate

  	
   

  
	
   

  	
  4.8.

  	
  Pro Rata
  Treatment and Payments

  	
   

  
	
   

  	
  4.9.

  	
  Requirements
  of Law

  	
   

  
	
   

  	
  4.10.

  	
  Taxes

  	
   

  

 

 

	
   

  	
  4.11.

  	
  Indemnity

  	
   

  
	
   

  	
  4.12.

  	
  Change of
  Lending Office

  	
   

  
	
   

  	
  4.13.

  	
  Replacement
  of Lenders

  	
   

  
	
   

  	
  4.14.

  	
  Evidence
  of Debt

  	
   

  
	
   

  	
  4.15.

  	
  Illegality

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5. REPRESENTATIONS AND
  WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.1.

  	
  Financial
  Condition

  	
   

  
	
   

  	
  5.2.

  	
  No Change

  	
   

  
	
   

  	
  5.3.

  	
  Corporate
  Existence; Compliance with Law

  	
   

  
	
   

  	
  5.4.

  	
  Power;
  Authorization; Enforceable Obligations

  	
   

  
	
   

  	
  5.5.

  	
  No Legal
  Bar

  	
   

  
	
   

  	
  5.6.

  	
  Litigation

  	
   

  
	
   

  	
  5.7.

  	
  No Default

  	
   

  
	
   

  	
  5.8.

  	
  Ownership
  of Property; Liens

  	
   

  
	
   

  	
  5.9.

  	
  Intellectual
  Property

  	
   

  
	
   

  	
  5.10.

  	
  Taxes

  	
   

  
	
   

  	
  5.11.

  	
  Federal
  Regulations

  	
   

  
	
   

  	
  5.12.

  	
  Labor
  Matters

  	
   

  
	
   

  	
  5.13.

  	
  ERISA

  	
   

  
	
   

  	
  5.14.

  	
  Investment
  Company Act; Other Regulations

  	
   

  
	
   

  	
  5.15.

  	
  Subsidiaries

  	
   

  
	
   

  	
  5.16.

  	
  Use of
  Proceeds

  	
   

  
	
   

  	
  5.17.

  	
  Environmental
  Matters

  	
   

  
	
   

  	
  5.18.

  	
  Accuracy
  of Information, etc.

  	
   

  
	
   

  	
  5.19.

  	
  Security
  Documents

  	
   

  
	
   

  	
  5.20.

  	
  Solvency

  	
   

  
	
   

  	
  5.21.

  	
  Designated
  Senior Debt

  	
   

  
	
   

  	
  5.22.

  	
  Regulation
  H

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6. CONDITIONS PRECEDENT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.1.

  	
  Conditions
  to Initial Extension of Credit

  	
   

  
	
   

  	
  6.2.

  	
  Conditions
  to Each Extension of Credit

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7. AFFIRMATIVE COVENANTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.1.

  	
  Financial
  Statements

  	
   

  
	
   

  	
  7.2.

  	
  Certificates;
  Other Information

  	
   

  
	
   

  	
  7.3.

  	
  Payment of
  Obligations

  	
   

  
	
   

  	
  7.4.

  	
  Maintenance
  of Existence; Compliance

  	
   

  
	
   

  	
  7.5.

  	
  Maintenance
  of Property; Insurance

  	
   

  
	
   

  	
  7.6.

  	
  Inspection
  of Property; Books and Records; Discussions

  	
   

  

 

 

	
   

  	
  7.7.

  	
  Notices

  	
   

  
	
   

  	
  7.8.

  	
  Environmental
  Laws

  	
   

  
	
   

  	
  7.9.

  	
  Interest
  Rate Protection

  	
   

  
	
   

  	
  7.10.

  	
  Additional
  Collateral, etc.

  	
   

  
	
   

  	
  7.11.

  	
  Further
  Assurances

  	
   

  
	
   

  	
  7.12.

  	
  Post-Closing
  Obligations

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8. NEGATIVE COVENANTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.1.

  	
  Financial
  Condition Covenants

  	
   

  
	
   

  	
  8.2.

  	
  Indebtedness

  	
   

  
	
   

  	
  8.3.

  	
  Liens

  	
   

  
	
   

  	
  8.4.

  	
  Fundamental
  Changes

  	
   

  
	
   

  	
  8.5.

  	
  Disposition
  of Property

  	
   

  
	
   

  	
  8.6.

  	
  Restricted
  Payments

  	
   

  
	
   

  	
  8.7.

  	
  Capital
  Expenditures; Net Cash Investment Costs

  	
   

  
	
   

  	
  8.8.

  	
  Investments

  	
   

  
	
   

  	
  8.9.

  	
  Optional
  Payments and Modifications of Certain Debt Instruments

  	
   

  
	
   

  	
  8.10.

  	
  Transactions
  with Affiliates

  	
   

  
	
   

  	
  8.11.

  	
  Sales and
  Leasebacks

  	
   

  
	
   

  	
  8.12.

  	
  Hedge
  Agreements

  	
   

  
	
   

  	
  8.13.

  	
  Changes
  in Fiscal Periods

  	
   

  
	
   

  	
  8.14.

  	
  Negative
  Pledge Clauses

  	
   

  
	
   

  	
  8.15.

  	
  Clauses
  Restricting Subsidiary Distributions

  	
   

  
	
   

  	
  8.16.

  	
  Lines of
  Business

  	
   

  
	
   

  	
  8.17.

  	
  Limitations
  on the Activities of Holdings

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9. EVENTS OF DEFAULT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10. THE AGENTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.1.

  	
  Appointment

  	
   

  
	
   

  	
  10.2.

  	
  Delegation
  of Duties

  	
   

  
	
   

  	
  10.3.

  	
  Exculpatory
  Provisions

  	
   

  
	
   

  	
  10.4.

  	
  Reliance
  by Agents

  	
   

  
	
   

  	
  10.5.

  	
  Notice of
  Default

  	
   

  
	
   

  	
  10.6.

  	
  Non-Reliance
  on Agents and Other Lenders

  	
   

  
	
   

  	
  10.7.

  	
  Indemnification

  	
   

  
	
   

  	
  10.8.

  	
  Agent in
  Its Individual Capacity

  	
   

  
	
   

  	
  10.9.

  	
  Successor
  Administrative Agent

  	
   

  
	
   

  	
  10.10.

  	
  Agents
  Generally

  	
   

  
	
   

  	
  10.11.

  	
  The Lead
  Arrangers

  	
   

  
	
   

  	
  10.12.

  	
  Withholding
  Tax

  	
   

  

 

 

	
  SECTION 11. MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.1.

  	
  Amendments
  and Waivers

  	
   

  
	
   

  	
  11.2.

  	
  Notices

  	
   

  
	
   

  	
  11.3.

  	
  No
  Waiver; Cumulative Remedies

  	
   

  
	
   

  	
  11.4.

  	
  Survival
  of Representations and Warranties

  	
   

  
	
   

  	
  11.5.

  	
  Payment
  of Expenses and Taxes

  	
   

  
	
   

  	
  11.6.

  	
  Successors
  and Assigns; Participations and Assignments

  	
   

  
	
   

  	
  11.7.

  	
  Adjustments;
  Set-off

  	
   

  
	
   

  	
  11.8.

  	
  Counterparts

  	
   

  
	
   

  	
  11.9.

  	
  Severability

  	
   

  
	
   

  	
  11.10.

  	
  Integration

  	
   

  
	
   

  	
  11.11.

  	
  GOVERNING
  LAW

  	
   

  
	
   

  	
  11.12.

  	
  Submission
  To Jurisdiction; Waivers

  	
   

  
	
   

  	
  11.13.

  	
  Acknowledgments

  	
   

  
	
   

  	
  11.14.

  	
  Releases
  of Guarantees and Liens

  	
   

  
	
   

  	
  11.15.

  	
  Confidentiality

  	
   

  
	
   

  	
  11.16.

  	
  WAIVERS
  OF JURY TRIAL

  	
   

  
	
   

  	
  11.17.

  	
  Delivery
  of Addenda

  	
   

  
	
   

  	
  11.18.

  	
  Subordination
  of Intercompany Indebtedness

  	
   

  
	
   

  	
  11.19.

  	
  USA
  PATRIOT Act

  	
   

  

 

	
  ANNEX:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  A

  	
   

  	
  Pricing Grid

  
	
   

  	
   

  	
   

  
	
  SCHEDULES:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1(a)

  	
   

  	
  Allotted Dispositions

  
	
  1.1(b)

  	
   

  	
  Mortgaged Intellectual Property

  
	
  1.1(c)

  	
   

  	
  Mortgaged Real Property

  
	
  5.4

  	
   

  	
  Consents, Authorizations, Filings and Notices

  
	
  5.15

  	
   

  	
  Subsidiaries

  
	
  5.19(a)

  	
   

  	
  UCC Filing Jurisdictions

  
	
  5.19(b)

  	
   

  	
  Mortgage Filing Jurisdictions

  
	
  8.3(f)

  	
   

  	
  Existing Liens

  
	
  8.8

  	
   

  	
  Closing Date Investments

  
	
   

  	
   

  	
   

  
	
  EXHIBITS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  A

  	
   

  	
  Form of Guarantee and Collateral Agreement

  
	
  B

  	
   

  	
  Form of Compliance Certificate

  
	
  C

  	
   

  	
  Form of Closing Certificate

  
	
  D

  	
   

  	
  Form of Mortgage

  

 

 

	
  E

  	
   

  	
  Form of Assignment and Assumption

  
	
  F

  	
   

  	
  Form of Legal Opinion of Kirkland & Ellis LLP

  
	
  G

  	
   

  	
  Form of Reinvestment Notice

  
	
  H

  	
   

  	
  Form of Exemption Certificate

  
	
  I-1

  	
   

  	
  Form of Term Note

  
	
  I-2

  	
   

  	
  Form of Revolving Note

  
	
  I-3

  	
   

  	
  Form Swingline Note

  
	
  J

  	
   

  	
  Form of Addendum

  
	
  K

  	
   

  	
  Form of Subordinated Intercompany Note

  
	
  L

  	
   

  	
  Form of Solvency Certificate

  
	
  M

  	
   

  	
  Form of Financial Status Certificate

  

 

 

CREDIT
AGREEMENT, dated as of April 18, 2005, among PROTECTION ONE, INC., a Delaware
corporation (“Holdings”), PROTECTION ONE ALARM MONITORING, INC., a Delaware
corporation (the “Borrower”), the several banks and other financial
institutions or entities from time to time parties to this Agreement (the “Lenders”),
BEAR, STEARNS & CO. INC. and LEHMAN BROTHERS INC., as joint lead
arrangers and joint bookrunners (in such capacity, collectively, the “Lead
Arrangers”), LEHMAN COMMERCIAL PAPER INC., as syndication agent (in such
capacity, and together with its successors in such capacity, the “Syndication
Agent”), HARRIS NESBITT FINANCING, INC., LASALLE BANK NATIONAL ASSOCIATION,
and U.S. BANK NATIONAL ASSOCIATION, as co-documentation agents (in such
capacity, and together with its successors in such capacity, the “Co-Documentation
Agents”), and BEAR STEARNS CORPORATE LENDING INC., as administrative agent
(in such capacity, and together with its successors in such capacity, the “Administrative
Agent”).

 

The parties
hereto hereby agree as follows:

 

SECTION 1. 
DEFINITIONS

 

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

 

“Acquired
Entity”:  as defined in the
definition of “Permitted Acquisition”.

 

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

 

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

 

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

 

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

 

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

 

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

 

1

 

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

 

“Agreement”:  this Credit Agreement.

 

“Allotted
Dispositions”:  (a) prior to the
first anniversary of the Closing Date, the Disposition of those customer
contracts or alarm monitoring operations that are described on Schedule 1.1(a);
and (b) during each year thereafter, Dispositions of customer contracts or
alarm monitoring operations for cash proceeds not to exceed $25,000,000 in any
one fiscal year; provided that no more than $50,000,000 of Allotted
Dispositions pursuant to this clause (b) shall be permitted in the
aggregate.

 

“Applicable
Margin”:  for each Type of Loan, the
rate per annum set forth under the relevant column heading below:

 

	
   

  	
   

  	
  Eurodollar Loans

  	
   

  	
  Base Rate Loans

  	
   

  
	
  Revolving
  Loans and Swingline Loans

  	
   

  	
  3.25

  	
  %

  	
  2.25

  	
  %

  
	
  Term Loans

  	
   

  	
  3.00

  	
  %

  	
  2.00

  	
  %

  

 

provided,
that, on and after the first Adjustment Date (as defined in the Pricing Grid)
occurring after the completion of two full fiscal quarters of the Borrower
after the Closing Date, the Applicable Margin with respect to Revolving Loans
and Swingline Loans will be determined pursuant to the Pricing Grid.

 

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

 

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

 

“Asset Sale”:  any Disposition of Property or series of
related Dispositions of Property (excluding any such Disposition permitted by Section 8.5)
that yields gross proceeds to any Group Member (valued at the initial principal
amount thereof in the case of non-cash proceeds consisting of notes or other
debt securities and valued at fair market value in the case of other non-cash
proceeds) in excess of $500,000.

 

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

 

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

 

2

 

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

 

“Base Rate”:  for any day, a rate per annum (rounded
upwards, if necessary, to the next 1/16 of 1%) equal to the greater of (a) the
Prime Rate in effect on such day and (b) the Federal Funds Effective Rate
in effect on such day plus 0.50%.  For
purposes hereof:  “Prime Rate”
shall mean the rate of interest per annum publicly announced from time to time
by the Reference Bank as its prime rate in effect at its principal office in
New York City (the Prime Rate not being intended to be the lowest rate of
interest charged by the Reference Bank in connection with extensions of credit
to debtors).  Any change in the Base Rate
due to a change in the Prime Rate or the Federal Funds Effective Rate shall be
effective as of the opening of business on the effective day of such change in
the Prime Rate or the Federal Funds Effective Rate, respectively.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Capital
Expenditures”:  for any period, with
respect to any Person, the aggregate of all expenditures by such Person and its
Subsidiaries for the acquisition or leasing (pursuant to a capital lease) of
fixed or capital assets or additions to equipment (including replacements,
capitalized repairs and improvements during such period) that should be
capitalized under GAAP on a consolidated balance sheet of such Person and its
Subsidiaries; provided, that Capital Expenditures shall not include expenditures
included in the definition of Net Cash Investment Costs.

 

3

 

 “Capital Lease Obligations”:  as to any Person, the obligations of such
Person to pay rent or other amounts under any lease of (or other arrangement
conveying the right to use) real or personal property, or a combination
thereof, which obligations are required to be classified and accounted for as
capital leases on a balance sheet of such Person under GAAP and, for the
purposes of this Agreement, the amount of such obligations at any time shall be
the capitalized amount thereof at such time determined in accordance with GAAP.

 

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

 

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

 

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

 

4

 

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

 

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

 

“Co-Documentation Agents”:  as defined in the preamble to this Agreement.

 

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

 

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

 

“Commitment
Fee Rate”:  0.50% per annum.

 

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

 

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

 

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

 

“Confidential
Information Memorandum”:  the
Confidential Information Memorandum dated March 2005 and furnished to the
Lenders.

 

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

 

“Consolidated
Current Liabilities”:  at any date,
all amounts that would, in conformity with GAAP, be set forth opposite the
caption “total current liabilities” (or any like caption) on a consolidated
balance sheet of Holdings and its Subsidiaries at such date, but

 

5

 

excluding (a) the
current portion of any Funded Debt of Holdings and its Subsidiaries and (b) without
duplication of clause (a) above, all Indebtedness consisting of Revolving
Loans or Swingline Loans to the extent otherwise included therein.

 

“Consolidated
EBITDA”:  for any period,
Consolidated Net Income for such period

 

plus, without duplication and to the extent
reflected as a charge in the statement of such Consolidated Net Income for such
period (except in the case of (i) below), the sum of:

 

 (a) income tax expense (including,
without duplication, franchise and foreign withholding taxes and any state
single business unitary or similar tax, to the extent classified as income tax
expense on the consolidated income statement of Holdings and its Subsidiaries
in accordance with GAAP),

 

(b) interest
expense, amortization or write-off of debt discount and debt issuance costs and
commissions, discounts and other fees and charges associated with Indebtedness
(including the Loans),

 

(c) depreciation
and amortization expense,

 

(d) amortization
of intangibles (including, but not limited to, goodwill), deferred customer
acquisition costs and organization costs,

 

(e) any
extraordinary charges, expenses or losses determined in accordance with GAAP,

 

(f) non-cash
compensation expenses arising from the issuance, vesting or exercise of stock,
options to purchase stock, stock appreciation rights and other equity awards to
the management, directors, officers, consultants and other employees of
Holdings or any of its Subsidiaries,

 

(g) any
other noncash charges, noncash expenses or noncash losses of the Borrower or
any of its Subsidiaries for such period (excluding any such charge, expense or
loss incurred in the ordinary course of business that constitutes an accrual of
or a reserve for cash charges for any future period); provided, however,
that cash payments made in such period or in any future period in respect of
such noncash charges, expenses or losses incurred after the Closing Date
(excluding any such charge, expense or loss incurred in the ordinary course of
business that constitutes an accrual of or a reserve for cash charges for any
future period) shall be subtracted from Consolidated Net Income in calculating
Consolidated EBITDA in the period when such payments are made,

 

(h) all
reasonable one-time costs, fees, expenses and charges related to any permitted
Investment, Permitted Acquisition, issuance of equity, recapitalization,
reorganization or asset disposition,

 

(i) cash
proceeds of business interruption insurance,

 

6

 

(j) management
and transaction fees and related expenses paid under the Management Agreement substantially
in the form most recently delivered to the Administrative Agent prior to the
Closing Date, and without further modification thereto as to amounts payable
thereunder,

 

(k) any
non-recurring charges, expenses or losses not exceeding, together with expenses
under clause (l), $1.75 million in each of calendar years 2005 and 2006, and
$1.0 million in each calendar year thereafter, and

 

(l) expenses
incurred in work force reductions such as severance, key employee retention
plans, and unfavorable lease payments or accruals for such payments not
exceeding, together with amounts under clause (k), $1.75 million in each of calendar
years 2005 and 2006, and $1.0 million in each calendar year thereafter,

 

minus, to the extent included in the statement
of such Consolidated Net Income for such period, the sum of:

 

(i) interest
income,

 

(ii) any
extraordinary income or gains determined in accordance with GAAP, and

 

(iii) any other non-cash
income (excluding (x) any items that represent the reversal of any accrual of,
or cash reserve for, anticipated cash charges in any prior period that are
described in the parenthetical to clause (g) above and (y) items
representing ordinary course accruals of cash to be received in future periods),
all as determined on a consolidated basis.

 

For the
purposes of calculating Consolidated EBITDA for any period of four consecutive
fiscal quarters (each, a “Reference Period”) pursuant to any
determination of the Consolidated Leverage Ratio, (i) if at any time
during such Reference Period the Borrower or any Subsidiary shall have made any
Material Disposition, the Consolidated EBITDA for such Reference Period shall
be reduced by an amount equal to the Consolidated EBITDA (if positive)
attributable to the property that is the subject of such Material Disposition
for such Reference Period or increased by an amount equal to the Consolidated
EBITDA (if negative) attributable thereto for such Reference Period and (ii) if
during such Reference Period the Borrower or any Subsidiary shall have made a
Material Acquisition, Consolidated EBITDA for such Reference Period shall be
calculated after giving pro  forma effect thereto as if such
Material Acquisition occurred on the first day of such Reference Period.  As used in this definition, “Material
Acquisition” means any acquisition of property or series of related
acquisitions of property that (a) constitutes assets comprising all or
substantially all of an operating unit of a business or constitutes all or
substantially all of the common stock of a Person and (b) involves the
payment of consideration by the Borrower and its Subsidiaries in excess of $5,000,000;
and “Material Disposition” means any Disposition of property or series of
related Dispositions of property that yields gross proceeds to the Borrower or
any of its Subsidiaries in excess of $5,000,000.  Notwithstanding the foregoing, Consolidated
EBITDA for the third and fourth fiscal quarters of 2004 shall be deemed to be $22,900,000,
and $21,300,000, respectively.

 

7

 

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

 

“Consolidated
Interest Expense”:  for any period,
total cash interest expense (including that attributable to Capital Lease
Obligations) of Holdings and its Subsidiaries for such period with respect to
all outstanding Indebtedness of Holdings and its Subsidiaries (including all
commissions, discounts and other fees and charges owed with respect to letters
of credit and bankers’ acceptance financing and net costs under Hedge
Agreements in respect of interest rates to the extent such net costs are allocable
to such period in accordance with GAAP). 
Notwithstanding anything to the contrary contained herein, for purposes
of calculating Consolidated Interest Expense (a) for the period of four
consecutive fiscal quarters ending June 30, 2005, Consolidated Interest
Expense for such period shall be deemed to be an amount equal to Consolidated
Interest Expense for the fiscal quarter ending June 30, 2005 multiplied by
four, (b) for the period of four consecutive fiscal quarters ending September 30,
2005, Consolidated Interest Expense for such period shall be deemed to be an
amount equal to Consolidated Interest Expense for the period of two consecutive
fiscal quarters ending September 30, 2005 multiplied by two and (c) for
the period of four consecutive fiscal quarters ending December 31, 2005,
Consolidated Interest Expense for such period shall be deemed to be an amount
equal to Consolidated Interest Expense for the period of three consecutive
fiscal quarters ending December 31, 2005 multiplied by 1.333.

 

“Consolidated
Leverage Ratio”:  as of the last day
of any period, the ratio of (a) Consolidated Total Debt on such day to (b) Consolidated
EBITDA for such period.

 

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

 

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

 

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

 

“Continuing Directors”:  the directors of Holdings on the Closing
Date, after giving effect to the transactions contemplated hereby, and each
other director, if, in each case,

 

8

 

such other director’s
nomination for election to the board of directors of Holdings is recommended by
at least a majority of the then Continuing Directors or such other director
receives the vote of the Permitted Investors in his or her election by the shareholders
of Holdings.

 

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

 

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

 

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

 

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

 

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

 

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

 

“ECF
Percentage”:  with respect to any
fiscal year of Holdings ending on or after December 31, 2006, 75%; provided
that the ECF Percentage shall be reduced to 50% if the Consolidated Leverage
Ratio as of the last day of such fiscal year is less than 3.0 to 1.0, and the
ECF Percentage shall be further reduced to 25% if the Consolidated Leverage
Ratio as of the last day of such fiscal year is less than 2.0 to 1.0.

 

“Eligible
Assignee” : (a) a commercial bank organized under the laws of the
United States, or any state thereof, and having a combined capital and surplus
of at least $100,000,000; (b) a commercial bank organized under the laws
of any other country that is a member of the Organization for Economic
Cooperation and Development (the “OECD”), or a political subdivision of any
such country, and having a combined capital and surplus in a dollar equivalent
amount of at least $100,000,000; provided, however, that such
bank is acting through a branch or agency located in the country in which it is
organized or another country that is also a member of the OECD; (c) an
insurance company, mutual fund or other entity which is regularly engaged in
making, purchasing or investing in loans or securities, or any other financial
institution organized under the laws of the United States, any state thereof,
any other country that is a member of the OECD or a political subdivision of
any such country with assets, or assets

 

9

 

under
management, in a dollar equivalent amount of at least $100,000,000; (d) any
Affiliate of a Lender or an Approved Fund of a Lender; (e) any other
entity (other than a natural person) which is an “accredited investor” (as
defined in Regulation D under the Securities Act) which extends credit or buys
loans as one of its businesses or investing activities including, but not
limited to, insurance companies, mutual funds and investment funds; (f) any
other entity if at the time of the applicable assignment a Default or Event of
Default shall be continuing and (g) any other entity consented to by the
Administrative Agent and the Borrower.

 

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

 

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

 

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

 

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

 

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

 

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

 

10

 

	
   

  	
   

  	
  Eurodollar Base Rate

  	
   

  	
   

  
	
   

  	
  1.00 - Eurocurrency
  Reserve Requirements

  	
   

  

 

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

 

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

 

“Excess
Cash Flow”:  for any fiscal year of
Holdings, the excess, if any, of:

 

(a) the
sum, without duplication, of:

 

(i) Consolidated Net Income for such fiscal year,

 

(ii) the amount of all non-cash charges
deducted in arriving at such Consolidated Net Income, other than any charges
that represent an accrual of a reserve for cash charges for any future period,

 

(iii) depreciation and amortization
expense,

 

(iv) amortization of intangibles
(including, but not limited to, goodwill), deferred customer acquisition costs
and organization costs,

 

(v) the increase in long-term
liabilities excluding (a) the long-term portion of debt, (b) the
long-term portion of Capital Lease Obligations, and (c) deferred customer
acquisition revenues for such fiscal year,

 

(vi) the aggregate net amount of non-cash
loss on the Disposition of Property by Holdings and its Subsidiaries during such
fiscal year (other than sales of inventory in the ordinary course of business),
to the extent deducted in arriving at such Consolidated Net Income,

 

(v) cash proceeds of business
interruption insurance,

 

(vi) the decrease in Consolidated
Working Capital for such fiscal year, and

 

(vii) the decrease in long-term assets
excluding (a) property, plant and equipment, (b) purchased accounts, (c) goodwill,
(d) intangible assets, (e) debt issuance costs, and (f) deferred
customer acquisition costs for such fiscal year, minus

 

(b)                                 the
sum, without duplication, of:

 

11

 

(i) the amount of all non-cash credits
included in arriving at such Consolidated Net Income,

 

(ii) the amortization of deferred
customer acquisition revenue,

 

(iii) the aggregate amount actually paid
by Holdings and its Subsidiaries in cash, and expenditures for which payables
have been recorded but not yet paid, during such fiscal year on account of
Capital Expenditures (excluding the principal amount of Indebtedness incurred
to finance such expenditures (but including repayments of any such Indebtedness
incurring during such period or any prior period) and any such expenditures
financed with the proceeds of any Reinvestment Deferred Amount),

 

(iv) the aggregate amount of all
regularly scheduled principal payments of Funded Debt (including the Term
Loans) of Holdings and its Subsidiaries made during such fiscal year (other
than in respect of Revolving Loans and any other revolving credit facility to
the extent there is not an equivalent permanent reduction in commitments
thereunder),

 

(v) an amount equal to the deferred
customer acquisition costs during such fiscal year minus the deferred
customer acquisition revenue during such fiscal year,

 

(vi) the increase in Consolidated
Working Capital for such fiscal year,

 

(vii) the increase in long-term assets excluding
(a) property, plant and equipment, (b) purchased accounts, (c) goodwill,
(d) intangible assets, (e) debt issuance costs, and (f) deferred
customer acquisition costs for such fiscal year,

 

(viii) the aggregate net amount of
non-cash gain on the Disposition of Property by Holdings and its Subsidiaries
during such fiscal year (other than sales of inventory in the ordinary course
of business), to the extent included in arriving at such Consolidated Net
Income,

 

(ix) all reasonable one-time costs,
fees, expenses and charges and one-time payments constituting or related to any
permitted Investments, Permitted Acquisitions, or equity issuances to the
extent not deducted in arriving at such Consolidated Net Income,

 

(x) management and transaction fees and
related expenses paid under the Management Agreement (substantially in the form
most recently delivered to the Administrative Agent prior to the Closing Date,
and without further modification thereto as to amounts payable thereunder) to
the extent not deducted in arriving at such Consolidated Net Income,

 

(xi) Restricted Payments made in cash which
were permitted to be made under this Credit Agreement, and

 

12

 

(xii) the decrease in long-term liabilities
excluding (a) the long-term portion of debt, (b) the long-term
portion of Capital Lease Obligations, and (c) deferred customer
acquisition revenues for such fiscal year.

 

To the extent
any Person is disregarded from the definition of “Consolidated Net Income”
pursuant to the proviso thereto in any period, such Person shall be so
disregarded from the calculation of Excess Cash Flow hereunder during such
period.  The aggregate amount of optional
prepayments of the Term Loans, and prepayments of Revolving Loans and Swingline
Loans to the extent accompanied by permanent reductions in Revolving Commitments,
made during any fiscal year shall reduce on a dollar-for-dollar basis the
required amount of the mandatory prepayment to be made pursuant to Section 4.2(d) with
respect to the Excess Cash Flow for such fiscal year.

 

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

 

 “Excluded Indebtedness”:  all Indebtedness permitted by Section 8.2.

 

“Facility”:  each of (a) the Term Commitments and the
Term Loans made thereunder (the “Term Facility”), and (b) the
Revolving Commitments and the extensions of credit made thereunder (the “Revolving
Facility”).

 

“Federal Funds
Effective Rate”:  for any day, the
weighted average of the rates on overnight federal funds transactions with
members of the Federal Reserve System arranged by federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of
New York, or, if such rate is not so published for any day that is a
Business Day, the average of the quotations for the day of such transactions
received by the Reference Lender from three federal funds brokers of recognized
standing selected by it.

 

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

 

“Funded
Debt”:  as to any Person, all
Indebtedness of such Person that has a scheduled maturity (excluding any
mandatory prepayments) more than one year from the date of its creation or
matures within one year from such date but is renewable or extendible, at the
option of such Person, to a date more than one year from such date or arises
under a revolving credit or similar agreement that obligates the lender or
lenders to extend credit during a period of more than one year from such date,
including all current maturities and current sinking fund payments in respect
of such Indebtedness whether or not required to be paid within one year from
the date of its creation and, in the case of the Borrower, Indebtedness in
respect of the Loans.

 

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

 

13

 

“GAAP”:  generally accepted accounting principles in
the United States as in effect from time to time, except that for purposes of Section 8.1,
GAAP shall be determined on the basis of such principles in effect on the date
hereof and consistent with those used in the preparation of the most recent
audited financial statements referred to in Section 5.1(b).  In the event that any Accounting Change (as
defined below) shall occur and such change results in a change in the method of
calculation of financial covenants, standards or terms in this Agreement, then
the Borrower and the Administrative Agent agree to enter into negotiations in
order to amend such provisions of this Agreement so as to equitably reflect
such Accounting Changes with the desired result that the criteria for
evaluating the Borrower’s financial condition shall be the same after such
Accounting Changes as if such Accounting Changes had not been made.  Until such time as such an amendment shall
have been executed and delivered by the Borrower, the Administrative Agent and
the Required Lenders, all financial covenants, standards and terms in this
Agreement shall continue to be calculated or construed as if such Accounting
Changes had not occurred.  “Accounting
Changes” refers to changes in accounting principles required by the
promulgation of any rule, regulation, pronouncement or opinion by the Financial
Accounting Standards Board of the American Institute of Certified Public
Accountants or, if applicable, the SEC.

 

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

 

“Group
Members”:  the collective reference
to Holdings, the Borrower and their respective Subsidiaries.

 

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

 

“Guarantee
Obligation”:  as to any Person (the “guaranteeing
person”), any obligation of (a) the guaranteeing person or (b) another
Person (including any bank under any letter of credit) to induce the creation
of which the guaranteeing person has issued a reimbursement, counterindemnity
or similar obligation, in either case guaranteeing or in effect guaranteeing
any Indebtedness, leases, dividends or other obligations (the “primary
obligations”) of any other third Person (the “primary obligor”) in
any manner, whether directly or indirectly, including any obligation of the
guaranteeing person, whether or not contingent, (i) to purchase any such
primary obligation or any property constituting direct or indirect security
therefor, (ii) to advance or supply funds (1) for the purchase or
payment of any such primary obligation or (2) to maintain working capital
or equity capital of the primary obligor or otherwise to maintain the net worth
or solvency of the primary obligor, (iii) to purchase property, securities
or services primarily for the purpose of assuring the owner of any such primary
obligation of the ability of the primary obligor to make payment of such
primary obligation or (iv) otherwise to assure or hold harmless the owner
of any such primary obligation against loss in respect thereof; provided,
however, that the term Guarantee Obligation shall not include
endorsements of instruments for

 

14

 

deposit or
collection in the ordinary course of business. 
The amount of any Guarantee Obligation of any guaranteeing person shall
be deemed to be the lower of (a) an amount equal to the stated or
determinable amount of the primary obligation in respect of which such
Guarantee Obligation is made and (b) the maximum amount for which such
guaranteeing person may be liable pursuant to the terms of the instrument
embodying such Guarantee Obligation or, if recourse is limited to a specific
asset, the fair market value of such asset, unless such primary obligation and
the maximum amount for which such guaranteeing person may be liable are not
stated or determinable, in which case the amount of such Guarantee Obligation
shall be such guaranteeing person’s maximum reasonably anticipated liability in
respect thereof as determined by the Borrower in good faith.

 

“Guarantors”:  the collective reference to Holdings and the
Subsidiary Guarantors.

 

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

 

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

 

“Indebtedness”:  of any Person at any date, without
duplication, (a) all indebtedness of such Person for borrowed money, (b) all
obligations of such Person for the deferred purchase price of property or
services (other than current trade payables incurred in the ordinary course of
such Person’s business), (c) all obligations of such Person evidenced by
notes, bonds, debentures or other similar instruments, (d) all
indebtedness created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such Person (even
though the rights and remedies of the seller or lender under such agreement in
the event of default are limited to repossession or sale of such property), (e) all
Capital Lease Obligations of such Person, (f) all obligations of such
Person, contingent or otherwise, as an account party or applicant under or in
respect of acceptances, letters of credit, surety bonds or similar
arrangements, (g) all obligations of such Person, contingent or otherwise,
to purchase, redeem, retire or otherwise acquire for value any Capital Stock of
such Person, (h) all Guarantee Obligations of such Person in respect of
obligations of the kind referred to in clauses (a) through (g) above,
(i) all obligations of the kind referred to in clauses (a) through (h) above
secured by (or for which the holder of such obligation has an existing right,
contingent or otherwise, to be secured by) any Lien on property (including
accounts and contract rights) owned by such Person, whether or not such Person
has assumed or become liable for the payment of such obligation, and (j) for the
purposes of Sections 8.2 and 9(e) only, all obligations of such Person in
respect of Hedge Agreements; provided that Indebtedness shall not
include deferred revenue, deferred tax liabilities and unclaimed property.  The Indebtedness of any Person shall include
the Indebtedness of any other entity (including any partnership in which such
Person is a general

 

15

 

partner) to
the extent such Person is liable therefor as a result of such Person’s
ownership interest in or other relationship with such entity, except to the
extent the terms of such Indebtedness expressly provide that such Person is not
liable therefor.

 

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

 

“Insolvent”:  pertaining to a condition of Insolvency.

 

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

 

“Interest
Payment Date”:  (a) as to any
Base Rate Loan (other than any Swingline Loan), the last day of each March,
June, September and December to occur while such Loan is outstanding
and the final maturity date of such Loan, (b) as to any Eurodollar Loan
having an Interest Period of three months or less, the last day of such
Interest Period, (c) as to any Eurodollar Loan having an Interest Period
longer than three months, each day that is three months, or a whole multiple
thereof, after the first day of such Interest Period and the last day of such
Interest Period, (d) as to any Loan (other than any Revolving Loan that is
a Base Rate Loan and any Swingline Loan), the date of any repayment or
prepayment made in respect thereof and (e) as to any Swingline Loan, the
day that such Loan is required to be paid.

 

“Interest
Period”:  as to any Eurodollar Loan, (a) initially,
the period commencing on the borrowing or conversion date, as the case may be,
with respect to such Eurodollar Loan and ending one, two, three or six or (if available
to all Lenders under the relevant Facility) nine or twelve months thereafter,
as selected by the Borrower in its notice of borrowing or notice of conversion,
as the case may be, given with respect thereto; and (b) thereafter, each
period commencing on the last day of the next preceding Interest Period
applicable to such Eurodollar Loan and ending one, two, three or six or (if available
to all Lenders under the relevant Facility) nine or twelve months thereafter,
as selected by the Borrower by irrevocable notice to the Administrative Agent
no later than 2:00 P.M., New York City time, on the date that is three
Business Days prior to the last day of the then current Interest Period with
respect thereto; provided that, all of the foregoing provisions relating
to Interest Periods are subject to the following:

 

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

 

16

 

(ii)                                  the Borrower may not
select an Interest Period under a particular Facility that would extend beyond
the Revolving Termination Date or beyond the date final payment is due on the
Term Loans;

 

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

 

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

 

“Investments”:  as defined in Section 8.8.

 

“Issuing
Lender”:  LaSalle Bank National Association,
in its capacity as issuer of any Letter of Credit.

 

“L/C
Commitment”:  $10,000,000.

 

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

 

“L/C
Obligations”:  at any time, an amount
equal to the sum of (a) the aggregate then undrawn and unexpired amount of
the then outstanding Letters of Credit and (b) the aggregate amount of
drawings under Letters of Credit that have not then been reimbursed pursuant to
Section 3.11.

 

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

 

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

 

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

 

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

 

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

 

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

 

“Loan
Documents”:  this Agreement, the
Security Documents and the Notes.

 

17

 

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

 

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

 

“Management
Agreement”: collectively, those certain letter agreements, by and between (i) the
Borrower and Quadrangle Advisors LLC, and (ii) the Borrower and Quadrangle
Debt Recovery Advisors LLC, setting forth certain terms regarding payments from
the Borrower for management and advisory services rendered by such entities.

 

“Material
Adverse Effect”:  a material adverse
effect on (a) the business, assets, property, financial condition or results
of operations of the Borrower and its Subsidiaries taken as a whole or (b) the
validity or enforceability of the Loan Documents or the rights or remedies of
the Agents or the Lenders hereunder or thereunder or the validity, perfection
or priority of the Administrative Agent’s Liens on the Collateral.

 

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

 

 “Maturity Date”: April 18, 2011; provided
that the Maturity Date shall automatically become June 30, 2008 if the
Senior Subordinated Notes are not repaid (or refinanced pursuant to a Permitted
Refinancing) in full on or prior to such date.

 

“Mortgaged
Properties”:  the real properties
listed on Schedule 1.1(c), as to which the Administrative Agent for the
benefit of the Lenders shall be granted a Lien pursuant to the Mortgages.

 

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

 

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

 

“Net Cash
Investment Cost”: for any period, with respect to any Person and its
Subsidiaries, the excess of (a) the sum of (i) the aggregate amount
of direct and indirect installation expenses related to acquiring new
customers, (ii) the aggregate amount of direct and indirect selling
expenses related to acquiring new customers and (iii) the aggregate amount
paid, directly or indirectly, for acquisition of subscriber accounts from any
third party, minus (b) the aggregate system installation revenues
related to acquiring new customers; each of clause (a)(i),

 

18

 

(a)(ii) and
(b) determined without the inclusion of amortization of deferred costs or
amortization of deferred revenues, as appropriate, in that period, and with the
inclusion of costs deferred or revenues deferred, as appropriate, in that
period, and each amount herein in accordance with GAAP.

 

“Net Cash
Proceeds”:  (a) in connection
with any Asset Sale, Allotted Disposition, equity issuance of Holdings or
Recovery Event, the proceeds thereof in the form of cash and Cash Equivalents
(including any such proceeds received by way of deferred payment of principal
pursuant to a note or installment receivable or purchase price adjustment
receivable or by the Disposition of any non-cash consideration received in
connection therewith or otherwise, but only as and when received) of such Asset
Sale, Allotted Disposition or Recovery Event, net of attorneys’ fees,
accountants’ fees, investment banking fees, amounts required to be applied to
the repayment of Indebtedness secured by a Lien expressly permitted hereunder
on any asset that is the subject of such Asset Sale, Allotted Disposition or
Recovery Event (other than any Lien pursuant to a Security Document) and other
reasonable out of pocket fees and expenses actually incurred in connection
therewith and net of taxes paid or reasonably estimated to be payable as a
result thereof (after taking into account any available tax credits or
deductions and any tax sharing arrangements) and reasonable reserves required
to be taken in connection therewith pursuant to GAAP and (b) in connection
with any issuance or sale of Capital Stock or any incurrence of Indebtedness,
the cash proceeds received from such issuance or incurrence, net of attorneys’
fees, investment banking fees, accountants’ fees, underwriting discounts and
commissions and other customary fees and expenses actually incurred in
connection therewith.

 

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

 

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

 

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

 

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

 

19

 

manner
permitted by this Agreement shall not require the consent of holders of
obligations under Specified Hedge Agreements.

 

“Old Credit
Facility”:  the Borrower’s existing
revolving credit facility, pursuant to which approximately $78,000,000 is
outstanding on the Closing Date prior to the making of the Loans hereunder.

 

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

 

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

 

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

 

“Permitted Acquisitions”:  the acquisition by the Borrower or any of its
Subsidiaries of all or substantially all of the assets of a Person or line of
business of such Person, or all of the Capital Stock of a Person (in each case
referred to herein as the “Acquired Entity”); provided that (a) 
the Acquired Entity shall be a going concern and shall be in a related line of
business as that of the Borrower and its Subsidiaries as conducted during the
current and most recently concluded calendar year; (b) all of the assets
of the Acquired Entity shall be located in the United States (provided
that such acquisition may involve assets located outside the United States so
long as the sum of the aggregate value of such foreign assets acquired shall be
deemed to be an Investment for purposes of clause (p) of Section 8.8 and
shall be permissible under such clause of such Section); (c) such
acquisition shall be consensual and shall have been approved by the Acquired
Entity’s board of directors (or other applicable governing body); (d) either
(i) the consideration paid in connection with such acquisition shall be
funded solely with the Net Cash Proceeds from an Allotted Disposition with
respect to which a Reinvestment Notice shall have been delivered hereunder or (ii) the
cash consideration (net of any Net Cash Proceeds received from equity issuances
by Holdings or issuances of subordinated Indebtedness by Holdings to the
Sponsor pursuant to Section 8.2(p), in each case, to the extent such
proceeds are substantially simultaneously applied to fund such Permitted
Acquisition) paid in connection with such acquisition and any other
acquisitions under this definition that is not funded as described in clause (i) above
shall not in the aggregate exceed $15,000,000 during any fiscal year and $35,000,000
in the aggregate during the term of this Agreement; (e) at the time of
such transaction (i) both before and after giving effect thereto, no Event
of Default or Default shall have occurred and be continuing; and (ii) the
Borrower would be in compliance with the covenants set forth in Section 8.1,
in each case, as of the most recently completed period ending prior to such
transaction for which the financial statements and certificates required by Section 7.1(a) or
7.1(b) and Section 7.2 were required to be delivered after giving pro
forma effect to such transaction and to any other event occurring after
such period as to which pro forma recalculation is appropriate
(including any other transaction described in this definition occurring after
such period) as if such transaction (and the occurrence, refinancing or
assumption of any Indebtedness in connection therewith) had occurred as of the
first day of such period; (f)

 

20

 

at least five Business Days prior to the proposed date of the
consummation of such acquisition, the Borrower shall have delivered to the
Administrative Agent a Compliance Certificate demonstrating compliance with the
requirements of clause (e)(ii) above (which shall have attached thereto
reasonably detailed backup data and calculations showing such compliance); (g) Holdings,
the Borrower and the Subsidiaries of the Borrower shall not incur or assume any
Indebtedness in connection with such acquisition, except as permitted by Section 8.2;
and (h) the Borrower and its Subsidiaries shall comply, and shall cause
the Acquired Entity to comply, with the applicable provisions of Sections 7.10
and 7.11 and the Security Documents.

 

 “Permitted Investors”:  the collective reference to the Sponsor and
its Control Investment Affiliates.

 

“Permitted
Refinancing” the refinancing of 100% of the Senior Subordinated Notes with
the proceeds of Indebtedness of the Borrower or Holdings issued pursuant to
documentation (a) containing terms that provide for (i) a final
maturity at least six months after the Maturity Date, (ii) a fixed
interest rate consistent with then prevailing market conditions, or a floating
interest rate if the Borrower obtains interest rate hedging contracts on terms
which are reasonably satisfactory to the Administrative Agent that effectively
fix the interest rate on such indebtedness until at least the Maturity Date, (iii) no
amortization of the principal amount of such Indebtedness prior to the date
that is six months after the Maturity Date, (iv) subordination on terms no
less favorable (taken as a whole) to the Lenders than those in the indenture
for the Senior Subordinated Notes as in effect on the Closing Date, and (v) no
security or collateral with respect to the obligations thereunder or (b) on
terms otherwise acceptable to the Administrative Agent.

 

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

 

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

 

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

 

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

 

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

 

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

 

“Property”:  any right or interest in or to property of
any kind whatsoever, whether real, personal or mixed and whether tangible or
intangible, including Capital Stock.

 

21

 

 

“Qualified Counterparty”:  with respect to any Specified Hedge
Agreement, any counterparty thereto that, at the time such Specified Hedge
Agreement was entered into, was a Lender or an Affiliate of a Lender or an
Agent or an Affiliate of an Agent.

 

“Qualified PO”:  an underwritten public offering of common
stock of (and by) Holdings pursuant to an effective registration statement
filed with the Securities and Exchange Commission in accordance with the
Securities Act, which public offering results in gross cash proceeds to
Holdings of $50,000,000 or more.

 

“Recovery Event”:  any settlement of or payment in respect of
any property or casualty insurance claim or any condemnation proceeding
relating to any asset of any Group Member (excluding business interruption
insurance).

 

“Reference Bank”:  Deutsche Bank.

 

“Refinanced Indebtedness”:  the Senior Notes and the Old Credit Facility.

 

“Refinancing”:  the repayment in full, with the proceeds of
the Term Loans and approximately $3,200,000 of cash, of the Refinanced
Indebtedness.

 

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

 

“Refunding Date”:  as defined in Section 3.4(c).

 

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

 

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

 

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

 

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

 

“Reinvestment Event”:  any Asset Sale, equity issuance of Holdings,
Recovery Event or Allotted Disposition in respect of which the Borrower has
delivered a Reinvestment Notice.

 

“Reinvestment Notice”:  a written notice executed by a Responsible
Officer stating that no Event of Default has occurred and is continuing and
that the Borrower (directly or indirectly through a Subsidiary) intends and
expects to use all or a specified portion of the Net Cash Proceeds of an Asset
Sale, equity issuance of Holdings, Recovery Event or Allotted Disposition (i) to
acquire or repair assets useful in (or, pursuant to a Permitted Acquisition,
any Acquired Entity engaged in) the business of providing alarm monitoring
services, (ii) for 

 

22

 

expenditures
included in the definition of Net Cash Investment Costs, or (iii) solely
in the case of Net Cash Proceeds of any equity issuance of Holdings, to prepay
all or any portion of the Senior Subordinated Notes.

 

“Reinvestment Prepayment Amount”:  with respect to any Reinvestment Event, the
Reinvestment Deferred Amount relating thereto less any amount expended (and,
prior to the date that is 360 days following the receipt of Net Cash Proceeds
from the relevant Reinvestment Event, amounts subject to a binding commitment
(evidenced by documentation reasonably satisfactory to the Administrative
Agent) to be expended within such period as evidenced in the applicable
Reinvestment Notice) prior to the relevant Reinvestment Prepayment Date (i) to
acquire or repair assets useful in (or, pursuant to a Permitted Acquisition,
any Acquired Entity engaged in) the business of providing alarm monitoring
services, (ii) for expenditures included in the definition of Net Cash
Investment Costs, or (iii) solely in the case of Net Cash Proceeds of any
equity issuance of Holdings, to prepay all or any portion of the Senior
Subordinated Notes.

 

“Reinvestment Prepayment Date”:  with respect to any Reinvestment Event, the
earlier of (a) the date occurring 270 days after the Net Cash Proceeds
from such Reinvestment Event are received and (b) the date on which the
Borrower shall have determined not to, or shall have otherwise ceased to,
acquire or repair assets useful in (or any Acquired Entity engaged in) the
business of providing alarm monitoring services or for Net Cash Investment
Costs (or, in the case of Net Cash Proceeds of any equity issuance of Holdings,
to prepay all or any portion of the Senior Subordinated Notes) with all or any
portion of the relevant Reinvestment Deferred Amount; provided that, as to
amounts evidenced in any Reinvestment Notice to be committed for expenditure
within 360 days following the receipt of Net Cash Proceeds from the relevant
Reinvestment Event, the date set forth in clause (a) hereof shall be
extended from 270 to 360 days.

 

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

 

“Reportable Event”:  any of the events set forth in Section 4043(c) of
ERISA, other than those events as to which the thirty day notice period is
waived under applicable regulations or any successor thereto.

 

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

 

“Requirement of Law”:  as to any Person, the certificate of
incorporation and by-laws or other organizational or governing documents of
such Person, and any law, treaty, rule or regulation or determination of
an arbitrator or a court or other Governmental Authority, in each case
applicable to or binding upon such Person or any of its property or to which
such Person or any of its property is subject.

 

23

 

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

 

“Restricted Payments”:  as defined in Section 8.6.

 

“Revolving Commitment”:  as to any Lender, the obligation of such
Lender, if any, to make Revolving Loans and participate in Swingline Loans and
Letters of Credit in an aggregate principal and/or face amount not to exceed
the amount set forth under the heading “Revolving Commitment” under such Lender’s
name on such Lender’s Addendum or in the Assignment and Assumption pursuant to
which such Lender became a party hereto, as the same may be changed from time
to time pursuant to the terms hereof. 
The original amount of the Total Revolving Commitments is $25,000,000.

 

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

 

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

 

“Revolving Lender”:  each Lender that has a Revolving Commitment
or that holds Revolving Loans.

 

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

 

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

 

“Revolving Termination Date”:  April 18, 2010; provided that the
Revolving Termination Date shall automatically become June 30, 2008 if the
Senior Subordinated Notes are not repaid (or refinanced pursuant to a Permitted
Refinancing) in full on or before such date.

 

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

 

“Secured Parties”: as defined in the
Guarantee and Collateral Agreement.

 

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

 

24

 

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

 

“Senior Notes”:  the Borrower’s 7.375% Senior Notes due 2005,
of which an aggregate principal amount of approximately $164.3 million is
outstanding on the Closing Date (prior to the initial funding of the Loans and
the use of proceeds thereof).

 

“Senior Subordinated Notes”:  the Borrower’s outstanding 8.125% Senior
Subordinated Notes due 2009.

 

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

 

“Solvent”:  with respect to any Person, as of any date of
determination, (a) the amount of the “present fair saleable value” of the
assets of such Person will, as of such date, exceed the amount of all “probable
liabilities of such Person, contingent or otherwise”, as of such date, as such
quoted terms are determined in accordance with applicable federal and state
laws governing determinations of the insolvency of debtors, (b) the
present fair saleable value of the assets of such Person will, as of such date,
be greater than the amount that will be required to pay the liability of such
Person on its debts as such debts become absolute and matured, (c) such
Person will not have, as of such date, an unreasonably small amount of capital
with which to conduct its business, (d) such Person will generally be able
to pay its debts as they mature.  For
purposes of this definition, (i) “debt” means liability on a “claim”, and (ii) “claim”
means any (x) right to payment, whether or not such a right is reduced to
judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured,
disputed, undisputed, legal, equitable, secured or unsecured or (y) right to an
equitable remedy for breach of performance if such breach gives rise to a right
to payment, whether or not such right to an equitable remedy is reduced to
judgment, fixed, contingent, matured or unmatured, disputed, undisputed,
secured or unsecured, and (e) such Person has not executed any Loan
Documents with actual intent to hinder, delay or defraud either present or
future creditors; provided, that in computing the amount of any
contingent, unliquidated, unmatured or disputed claim at any time, it is
intended that such claims will be computed at the amount which, in light of all
facts and circumstances existing at such time, represents the amount that can
reasonably be expected to become an actual, liquidated or matured claim

 

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

 

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

 

25

 

any Collateral
or of the obligations of any Guarantor under the Guarantee and Collateral Agreement.

 

“Sponsor”:  Quadrangle Capital Partners LP, Quadrangle
Capital Partners-A LP, Quadrangle Select Partners LP, any other Persons managed
by Quadrangle GP Investors, LLC, Quadrangle Master Funding Ltd, any other
Persons managed by Quadrangle Debt Recovery Advisors LLC and their respective
affiliates.

 

 “Subordinated
Intercompany Note”:  with respect to
any Group Member as the maker thereof, a promissory note substantially in the
form of Exhibit K (with such modifications as the Administrative Agent may
agree to), which promissory note shall evidence all intercompany loans which
may be made from time to time by any payee thereunder (whether or not reflected
on the attached schedule thereto); provided that the amounts
reflected as owing pursuant to any such notes shall only be required to be
updated on a quarterly basis.

 

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

 

“Subsidiary Guarantor”:  each Domestic Subsidiary of the Borrower.

 

“Swingline Commitment”:  the obligation of the Swingline Lender to
make Swingline Loans pursuant to Section 3.3 in an aggregate principal
amount at any one time outstanding not to exceed $2,500,000.

 

“Swingline Lender”:  Bear Stearns Corporate Lending Inc., in its
capacity as the lender of Swingline Loans.

 

“Swingline Loans”:  as defined in Section 3.3.

 

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

 

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

 

“Syndication Date”:  the date on which the Syndication Agent and
the Lead Arrangers complete the syndication of the Facilities and the entities
selected in such syndication process become parties to this Agreement, which
date shall be no later than 90 days following the Closing Date.

 

“Term Commitment”:  as to any Lender, the obligation of such
Lender, if any, to make a Term Loan to the Borrower hereunder in a principal amount
not to exceed the amount set 

 

26

 

forth under
the heading “Term Commitment” under such Lender’s name on such Lender’s
Addendum.  The original aggregate amount
of the Term Commitments is $250,000,000.

 

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

 

“Term Loan”:  as defined in Section 2.1.

 

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

 

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

 

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

 

 “Transferee”:  any Assignee or Participant.

 

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

 

“United States”:  the United States of America.

 

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

 

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

 

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

 

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

 

27

 

contract rights, and (v) references to
agreements or other Contractual Obligations shall, unless otherwise specified,
be deemed to refer to such agreements or Contractual Obligations as amended,
supplemented, restated or otherwise modified from time to time (subject to any
applicable restrictions hereunder).

 

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

 

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

 

(e)                                  The
expressions, “payment in full,” “paid in full” and any other similar terms or
phrases when used herein with respect to the Obligations shall mean the payment
in full, in immediately available funds, of all the Obligations.

 

SECTION 2.  AMOUNT AND TERMS OF TERM COMMITMENTS

 

2.1.                              Term
Commitments.  Subject to the terms
and conditions hereof, each Term Lender severally agrees to make a term loan (a
“Term Loan”) to the Borrower on the Closing Date in an amount not to
exceed the amount of the Term Commitment of such Lender.  The Term Loans may from time to time be
Eurodollar Loans or Base Rate Loans, as determined by the Borrower and notified
to the Administrative Agent in accordance with Sections 2.2 and 4.3.

 

2.2.                              Procedure
for Term Loan Borrowing.  The
Borrower shall give the Administrative Agent irrevocable notice (which notice
must be received by the Administrative Agent prior to 10:00 A.M., New York
City time, one Business Day prior to the anticipated Closing Date) requesting
that the Term Lenders make the Term Loans on the Closing Date and specifying
the amount to be borrowed.  The Term
Loans made on the Closing Date shall initially be Base Rate Loans and, unless
otherwise agreed by the Administrative Agent in its sole discretion, no Term
Loan may be converted into or continued as a Eurodollar Loan having an Interest
Period in excess of one month prior to the Syndication Date.  Upon receipt of such notice the
Administrative Agent shall promptly notify each Term Lender thereof.  Not later than 12:00 Noon, New York City
time, on the Closing Date each Term Lender shall make available to the
Administrative Agent at the Funding Office an amount in immediately available
funds equal to the Term Loan or Term Loans to be made by such Lender.  The Administrative Agent shall credit the
account of the Borrower on the books of such office of the Administrative Agent
with the aggregate of the amounts made available to the Administrative Agent by
the Term Lenders in immediately available funds.

 

2.3.                              Repayment
of Term Loans.  The Term Loan of each
Term Lender shall mature in the following quarterly installments, commencing on
June 30, 2005, each of which shall be in an amount equal to such Lender’s
Term Percentage multiplied by the amount set forth below opposite such
installment:

 

28

 

	
  Installment

  	
   

  	
  Principal Amount

  
	
  June 30, 2005

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  September 30, 2005

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  December 31, 2005

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  March 31, 2006

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  June 30, 2006

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  September 30, 2006

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  December 31, 2006

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  March 31, 2007

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  June 30, 2007

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  September 30, 2007

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  December 31, 2007

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  March 31, 2008

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  June 30, 2008

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  September 30, 2008

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  December 31, 2008

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  March 31, 2009

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  June 30, 2009

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  September 30, 2009

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  December 31, 2009

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  March 31, 2010

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  June 30, 2010

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  September 30, 2010

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  December 31, 2010

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  March 31, 2011

  	
   

  	
  $

  	
  625,000

  	
   

  
	
  Maturity Date

  	
   

  	
  $

  	
  235,000,000

  	
   or remainder

  

 

 

SECTION 3.  AMOUNT AND TERMS OF REVOLVING
COMMITMENTS

 

3.1.                              Revolving
Commitments.  (a) Subject to the
terms and conditions hereof, each Revolving Lender severally agrees to make
revolving credit loans (“Revolving Loans”) to 

 

29

 

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

 

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

 

3.2.                              Procedure
for Revolving Loan Borrowing.  The
Borrower may borrow under the Revolving Commitments during the Revolving
Commitment Period on any Business Day, provided that the Borrower shall give
the Administrative Agent irrevocable notice (which notice must be received by
the Administrative Agent prior to 2:00 P.M., New York City time, (a) three
Business Days prior to the requested Borrowing Date, in the case of Eurodollar
Loans, or (b) one Business Day prior to the requested Borrowing Date, in
the case of Base Rate Loans) (provided that any such notice of a borrowing of
Base Rate Loans under the Revolving Facility to finance payments required to be
made pursuant to Section 3.5 may be given not later than 10:00 A.M.,
New York City time, on the date of the proposed borrowing), specifying (i) the
amount and Type of Revolving Loans to be borrowed, (ii) the requested
Borrowing Date and (iii) in the case of Eurodollar Loans, the respective
amounts of each such Type of Loan and the respective lengths of the initial
Interest Period therefor.  Any Revolving
Loans made prior to the Syndication Date shall initially be Base Rate Loans and,
unless otherwise agreed by the Administrative Agent in its sole discretion, no
Revolving Loan may be made as, converted into or continued as a Eurodollar Loan
having an Interest Period in excess of one month prior to the Syndication Date.  Each borrowing under the Revolving
Commitments shall be in an amount equal to (x) in the case of Base Rate Loans,
$1,000,000 or a whole multiple thereof (or, if the then aggregate Available
Revolving Commitments are less than $1,000,000, such lesser amount) and (y) in
the case of Eurodollar Loans, $1,000,000 or a whole multiple of $1,000,000 in
excess thereof; provided, that the Swingline Lender may request, on behalf of
the Borrower, borrowings under the Revolving Commitments that are Base Rate
Loans in other amounts pursuant to Section 3.4.  Upon receipt of any such notice from the
Borrower, the Administrative Agent shall promptly notify each Revolving Lender
thereof.  Each Revolving Lender will make
the amount of its pro rata share of each borrowing available to the
Administrative Agent for the account of the Borrower at the Funding Office
prior to 12:00 Noon, New York City time, on the Borrowing Date requested by the
Borrower in funds immediately available to the Administrative Agent.  Such borrowing will then be made available to
the Borrower by the Administrative Agent by crediting the account of the
Borrower on the books of such office with the aggregate of the amounts made
available to the Administrative Agent by the Revolving Lenders and in like
funds as received by the Administrative Agent.  No Revolving Loans shall be made on the
Closing Date.

 

30

 

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

 

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

 

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

 

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

 

31

 

Swingline Loans.  The Borrower irrevocably authorizes the
Swingline Lender to charge the Borrower’s accounts with the Administrative
Agent (up to the amount available in each such account) in order to immediately
pay the amount of such Refunded Swingline Loans to the extent amounts received
from the Revolving Lenders are not sufficient to repay in full such Refunded
Swingline Loans.

 

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

 

(d)                                 Whenever,
at any time after the Swingline Lender has received from any Revolving Lender
such Lender’s Swingline Participation Amount, the Swingline Lender receives any
payment on account of the Swingline Loans, the Swingline Lender will distribute
to such Lender its Swingline Participation Amount (appropriately adjusted, in
the case of interest payments, to reflect the period of time during which such
Lender’s participating interest was outstanding and funded and, in the case of
principal and interest payments, to reflect such Lender’s pro  rata
portion of such payment if such payment is not sufficient to pay the principal
of and interest on all Swingline Loans then due); provided, however,
that in the event that such payment received by the Swingline Lender is
required to be returned, such Revolving Lender will return to the Swingline
Lender any portion thereof previously distributed to it by the Swingline
Lender.

 

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

 

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

 

32

 

arrears on the last day of each March, June, September and December and
on the Revolving Termination Date, commencing on the first of such dates to
occur after the date hereof.

 

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

 

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

 

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

 

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

 

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

 

3.8.                              Procedure
for Issuance of Letter of Credit. 
The Borrower may from time to time request that the Issuing Lender issue
a Letter of Credit by delivering to the Issuing Lender at its address for
notices specified herein an Application therefor, completed to the reasonable satisfaction
of the Issuing Lender, and such other certificates, documents and other papers
and information as the Issuing Lender may reasonably request.  Upon receipt of any Application, the Issuing
Lender will notify the Administrative Agent of the amount, the beneficiary and
the requested expiration of the requested Letter of Credit, and upon receipt of

 

33

 

confirmation from the Administrative Agent that after giving effect to
the requested issuance, the Available Revolving Commitments would not be less
than zero, the Issuing Lender will process such Application and the
certificates, documents and other papers and information delivered to it in connection
therewith in accordance with its customary procedures and shall promptly issue
the Letter of Credit requested thereby (but in no event shall the Issuing
Lender be required to issue any Letter of Credit earlier than three Business
Days after its receipt of the Application therefor and all such other
certificates, documents and other papers and information relating thereto) by
issuing the original of such Letter of Credit to the beneficiary thereof or as
otherwise may be agreed to by the Issuing Lender and the Borrower.  The Issuing Lender shall furnish a copy of
such Letter of Credit to the Borrower (with, upon its request, a copy to the
Administrative Agent) promptly following the issuance thereof.  The Issuing Lender shall promptly furnish to
the Administrative Agent, which shall in turn promptly furnish to the
Administrative Agent, which shall in turn promptly furnish to the Lenders,
notice of the issuance of each Letter of Credit (including the amount thereof).

 

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

 

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

 

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

 

34

 

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

 

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

 

3.11.                        Reimbursement
Obligation of the Borrower.  The
Borrower agrees to reimburse the Issuing Lender on the Business Day next
succeeding the Business Day on which the Issuing Lender notifies the Borrower
of the date and amount of a draft presented under any Letter of Credit and paid
by the Issuing Lender for the amount of (a) such draft so paid and (b) any
taxes, fees, charges or other reasonable costs or expenses incurred by the
Issuing Lender in connection with such payment. 
Each such payment shall be made to the Issuing Lender at its address for
notices referred to herein in Dollars and in immediately available funds.  Interest shall be payable on any such amounts
from the date on which the relevant draft is paid until payment in full at the
rate set forth in (i) until the Business Day next succeeding the date of
the relevant notice, Section 4.5(b) and (ii) thereafter, Section 4.5(c).  To the extent not so reimbursed as set forth
above, each drawing under any Letter of Credit shall (unless an event of the
type described in clause (i) or (ii) of Section 9(f) shall
have occurred and be continuing with respect to the Borrower, in which case the
procedures specified in Section 3.10 for funding by L/C 

 

35

 

Participants shall apply) constitute a request by the Borrower to the
Administrative Agent for a borrowing pursuant to Section 3.2 of Base Rate
Loans in the amount of such drawing.  The
Borrowing Date with respect to such borrowing shall be the first date on which
a borrowing of Revolving Credit Loans could be made, pursuant to Section 3.2,
if the Administrative Agent had received a notice of such borrowing at the time
the Administrative Agent receives notice from the relevant Issuing Lender of
such drawing under such Letter of Credit.

 

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

 

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

 

3.14.                        Applications.  To the extent that any provision of any
Application related to any Letter of Credit is inconsistent with the provisions
of this Section 3, the provisions of this Section 3 shall apply.

 

SECTION 4.  GENERAL
PROVISIONS APPLICABLE 

TO LOANS AND LETTERS OF CREDIT

 

4.1.                              Optional
Prepayments.  The Borrower may at any
time and from time to time prepay the Loans, in whole or in part, without
premium or penalty, upon irrevocable notice 

 

36

 

delivered to the Administrative Agent no later than 2:00 P.M., New
York City time, three Business Days prior thereto in the case of Eurodollar
Loans and no later than 2:00 P.M., New York City time, one Business Day
prior thereto in the case of Base Rate Loans, which notice shall specify the
date and amount of prepayment and whether the prepayment is of Eurodollar Loans
or Base Rate Loans; provided, that if a Eurodollar Loan is prepaid on any day
other than the last day of the Interest Period applicable thereto, the Borrower
shall also pay any amounts owing pursuant to Section 4.11.  Upon receipt of any such notice the
Administrative Agent shall promptly notify each relevant Lender thereof.  If any such notice is given, the amount
specified in such notice shall be due and payable on the date specified
therein, together with (except in the case of Revolving Loans that are Base
Rate Loans and Swingline Loans) accrued interest to such date on the amount
prepaid.  Partial prepayments of Term
Loans and Revolving Loans shall be in an aggregate principal amount of
$1,000,000 or a whole multiple thereof. 
Partial prepayments of Swingline Loans shall be in an aggregate
principal amount of $100,000 or a whole multiple thereof.

 

4.2.                              Mandatory
Prepayments and Commitment Reductions. 
(a) If any Capital
Stock shall be issued by Holdings on any date (other than issuances (a) to
the Sponsor and its Control Investment Affiliates, (b) to management, employees,
directors or consultants of Holdings or any of its Subsidiaries pursuant to any
employee stock option or stock purchase plan or other employee benefit plan in
existence from time to time, or (c) to other Persons to the extent the
proceeds of such issuances are concurrently applied to fund Permitted
Acquisitions), an amount equal to 50% of the Net Cash Proceeds thereof shall be
applied (unless a Reinvestment Notice shall be delivered in respect thereof) on
the date of such issuance toward the prepayment of the Term Loans and the
reduction of the Revolving Commitments as set forth in Section 4.2(f); provided
that (i) no such application of Net Cash Proceeds shall be required if, at
the time of such issuance of Capital Stock, the Borrower’s Consolidated Leverage
Ratio is less than 2.50:1.00 and (ii) notwithstanding the foregoing, on
each Reinvestment Prepayment Date, an amount equal to the Reinvestment
Prepayment Amount with respect to the relevant Reinvestment Event shall be
applied toward the prepayment of the Term Loans and the reduction of the
Revolving Commitments as set forth in Section 4.2(f).

 

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

 

(c)                                  If
on any date any Group Member shall receive Net Cash Proceeds from any Asset
Sale (including sales or issuances of Capital Stock of the Borrower or any of
its Subsidiaries) or Recovery Event in excess of $500,000 then, unless a
Reinvestment Notice shall be delivered in respect thereof, such Net Cash
Proceeds shall be applied on such date toward the prepayment of the Term Loans
and the reduction of the Revolving Commitments as set forth in Section 4.2(f);
provided, that, notwithstanding the foregoing, on each Reinvestment
Prepayment Date, an amount equal to the Reinvestment Prepayment Amount with
respect to the relevant Reinvestment Event shall be applied toward the
prepayment of the Term Loans and the reduction of the Revolving Commitments as
set forth in Section 4.2(f).

 

37

 

(d)                                 If,
for any fiscal year of the Borrower commencing with the fiscal year ending December 31,
2006, there shall be positive Excess Cash Flow, the Borrower shall, on the
relevant Excess Cash Flow Application Date, apply the ECF Percentage of such
Excess Cash Flow toward the prepayment of the Term Loans and the reduction of
the Revolving Commitments as set forth in Section 4.2(f).  Each such prepayment and commitment reduction
shall be made on a date (an “Excess Cash Flow Application Date”) no
later than five Business Days after the earlier of (i) the date on which
the financial statements of the Borrower referred to in Section 7.1(a),
for the fiscal year with respect to which such prepayment is made, are required
to be delivered to the Lenders and (ii) the date such financial statements
are actually delivered.

 

(e)                                  If
on any date a Group Member shall receive Net Cash Proceeds from any Allotted
Disposition, then, unless a Reinvestment Notice shall be delivered in respect
thereof, an amount equal to 100% of such Net Cash Proceeds shall be applied on
such date toward the prepayment of the Term Loans and the reduction of the
Revolving Commitments as set forth in Section 4.2(f); provided
that, notwithstanding the foregoing, on each Reinvestment Prepayment Date, an
amount equal to the Reinvestment Prepayment Amount with respect to the relevant
Reinvestment Event shall be applied toward the prepayment of the Term Loans and
the reduction of the Revolving Commitments as set forth in Section 4.2(f).

 

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

 

4.3.                              Conversion
and Continuation Options.  (a)  The
Borrower may elect from time to time to convert Eurodollar Loans to Base Rate
Loans by giving the Administrative Agent prior irrevocable notice of such
election no later than 2:00 P.M., New York City time, on the Business Day
preceding the proposed conversion date, provided that any such conversion of
Eurodollar Loans may only be made on the last day of an Interest Period with
respect thereto.  The Borrower may elect
from time to time to convert Base Rate Loans to Eurodollar Loans by giving the
Administrative Agent prior irrevocable notice of such election no later than 2:00 P.M.,
New York City time, on the Business Day preceding the proposed conversion date
(which notice shall specify the length of the initial Interest Period
therefor), provided that no Base Rate Loan under a particular Facility may be
converted into a Eurodollar Loan when any Event of Default 

 

38

 

has occurred and is continuing and the Administrative Agent or the
Majority Facility Lenders in respect of such Facility have determined in its or
their sole discretion not to permit such conversions and have given notice to
the Borrower of such determination.  Upon
receipt of any such notice the Administrative Agent shall promptly notify each
relevant Lender thereof.

 

(b)                                 Any
Eurodollar Loan may be continued as such upon the expiration of the then
current Interest Period with respect thereto by the Borrower giving irrevocable
notice to the Administrative Agent, in accordance with the applicable
provisions of the term “Interest Period” set forth in Section 1.1, of the
length of the next Interest Period to be applicable to such Loans, provided
that no Eurodollar Loan under a particular Facility may be continued as such
when any Event of Default has occurred and is continuing and the Administrative
Agent has or the Majority Facility Lenders in respect of such Facility have
determined in its or their sole discretion not to permit such continuations and
have given notice to the Borrower of such determination, and provided, further,
that if the Borrower shall fail to give any required notice as described above
in this paragraph or if such continuation is not permitted pursuant to the
preceding proviso such Loans shall be automatically converted to Base Rate
Loans on the last day of such then expiring Interest Period.  Upon receipt of any such notice the Administrative
Agent shall promptly notify each relevant Lender thereof.

 

4.4.                              Limitations
on Eurodollar Tranches. 
Notwithstanding anything to the contrary in this Agreement, all
borrowings, conversions and continuations of Eurodollar Loans hereunder and all
selections of Interest Periods hereunder shall be in such amounts and be made
pursuant to such elections so that, (a) after giving effect thereto, the
aggregate principal amount of the Eurodollar Loans comprising each Eurodollar
Tranche shall be equal to $500,000 or a whole multiple of $500,000 in excess
thereof and (b) no more than ten Eurodollar Tranches shall be outstanding
at any one time.

 

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

 

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

 

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

 

39

 

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

 

4.6.                              Computation
of Interest and Fees.  (a)  Interest
and fees payable pursuant hereto shall be calculated on the basis of a 360-day
year for the actual days elapsed, except that, with respect to Base Rate Loans
the rate of interest on which is calculated on the basis of the Prime Rate, the
interest thereon shall be calculated on the basis of a 365- (or 366-, as the
case may be) day year for the actual days elapsed.  The Administrative Agent shall as soon as
practicable notify the Borrower and the relevant Lenders of each determination
of a Eurodollar Rate.  Any change in the
interest rate on a Loan resulting from a change in the Base Rate or the
Eurocurrency Reserve Requirements shall become effective as of the opening of
business on the day on which such change becomes effective.  The Administrative Agent shall as soon as
practicable notify the Borrower and the relevant Lenders of the effective date
and the amount of each such change in interest rate.

 

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

 

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

 

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

 

(b)                                 the
Administrative Agent shall have received notice from the Majority Facility
Lenders in respect of the relevant Facility that the Eurodollar Rate determined
or to be determined for such Interest Period will not adequately and fairly
reflect the cost to such Lenders (as conclusively certified by such Lenders in
their reasonable discretion) of making or maintaining their affected Loans
during such Interest Period, the Administrative Agent shall give telecopy or
telephonic notice thereof to the Borrower and the relevant Lenders as soon as
practicable thereafter.  If such notice
is given (x) any Eurodollar Loans under the relevant Facility requested to be
made on the first day of such Interest Period shall be made as Base Rate Loans,
(y) any Loans under the relevant Facility that were to have been converted
on the first day of such Interest Period to Eurodollar Loans shall be continued
as Base Rate Loans and (z) any outstanding Eurodollar Loans under the relevant
Facility shall be converted, on the last day of the then-current Interest
Period, to Base Rate Loans.  Until such condition
no longer exists, as determined by the Administrative Agent, no further
Eurodollar Loans under the relevant Facility shall be made or continued as
such, nor shall the Borrower have the right to convert Loans under the relevant
Facility to Eurodollar Loans.

 

40

 

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

 

(b)                                 Each
payment (including each prepayment) by the Borrower on account of principal of
and interest on the Term Loans shall be made pro  rata according
to the respective outstanding principal amounts of the Term Loans then held by
the Term Lenders (except as otherwise provided in Section 4.2(f)).  The amount of each principal prepayment of
the Term Loans shall be applied to reduce the then remaining installments of
the Term Loans pro  rata based upon the then remaining principal
amount thereof.  Amounts prepaid on
account of the Term Loans may not be reborrowed.

 

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

 

(d)                                 All
payments (including prepayments) to be made by the Borrower hereunder, whether
on account of principal, interest, fees or otherwise, shall be made without
setoff or counterclaim and shall be made prior to 2:00 P.M., New York City
time, on the due date thereof to the Administrative Agent, for the account of
the Lenders, at the Funding Office, in Dollars and in immediately available
funds.  The Administrative Agent shall
distribute such payments to the Lenders promptly upon receipt in like funds as
received.  If any payment hereunder
(other than payments on the Eurodollar Loans) becomes due and payable on a day
other than a Business Day, such payment shall be extended to the next succeeding
Business Day.  If any payment on a Eurodollar
Loan becomes due and payable on a day other than a Business Day, the maturity
thereof shall be extended to the next succeeding Business Day unless the result
of such extension would be to extend such payment into another calendar month,
in which event such payment shall be made on the immediately preceding Business
Day.  In the case of any extension of any
payment of principal pursuant to the preceding two sentences, interest thereon
shall be payable at the then applicable rate during such extension.

 

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

 

41

 

paragraph shall be conclusive in the absence
of manifest error.  If such Lender’s
share of such borrowing is not made available to the Administrative Agent by
such Lender within three Business Days of such Borrowing Date, the
Administrative Agent shall also be entitled to recover such amount with
interest thereon at the rate per annum applicable to Base Rate Loans under the
relevant Facility, on demand, from the Borrower.

 

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

 

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

 

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

 

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

 

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

 

and the result
of any of the foregoing is to increase the cost to such Lender, by an amount
that such Lender reasonably deems to be material, of making, converting into,
continuing or maintaining Eurodollar Loans or issuing or participating in
Letters of Credit, or to reduce any amount receivable hereunder in respect
thereof, then, in any such case, the Borrower shall, within ten Business Days
after receiving written notice from such Lender setting forth in reasonable
detail such cost, pay such Lender, upon its demand, any additional amounts
necessary to compensate such Lender for such increased cost or reduced amount
receivable.  If any Lender becomes
entitled to claim any additional amounts pursuant to this paragraph, it shall
promptly 

 

42

 

notify the
Borrower (with a copy to the Administrative Agent) of the event by reason of
which it has become so entitled.

 

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

 

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

 

4.10.                        Taxes.  (a)  All payments made by or on behalf
of the Borrower under this Agreement or any other Loan Document shall be made
free and clear of, and without deduction or withholding for or on account of,
any present or future income, stamp or other taxes, levies, imposts, duties,
charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected,
withheld or assessed by any Governmental Authority, excluding net income taxes,
branch profit taxes imposed by the United States and franchise taxes (imposed
in lieu of net income taxes) imposed on any Agent or any Lender as a result of
a present or former connection between such Agent or such Lender and the
jurisdiction of the Governmental Authority imposing such tax or any political
subdivision or taxing authority thereof or therein (other than any such
connection arising solely from such Agent or such Lender having executed,
delivered or performed its obligations or received a payment under, or
enforced, this Agreement or any other Loan Document).  If any such non-excluded taxes, levies,
imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded
Taxes”) or Other Taxes are required to be withheld from any amounts payable
to any Agent or any Lender hereunder, the amounts so payable to such Agent or
such Lender shall be increased to the extent necessary to yield to such Agent
or such Lender (after payment of all Non-Excluded Taxes and Other Taxes)
interest or any such other amounts payable hereunder at the rates or in the
amounts specified in this Agreement, 

 

43

 

provided, however, that the Borrower shall not be required to increase
any such amounts payable to any Lender with respect to any Non-Excluded Taxes (i) that
are attributable to such Lender’s failure to comply with the requirements of
paragraph (e) or (f) of this Section or (ii) that are
United States withholding taxes imposed on amounts payable to such Lender at
the time such Lender becomes a party to this Agreement, except to the extent
that such Lender’s assignor (if any) was entitled, at the time of assignment,
to receive additional amounts from the Borrower with respect to such
Non-Excluded Taxes pursuant to this paragraph. 
The Borrower shall make (or cause to be made) any required deduction or
withholding and pay (or cause to be paid) the full amount deducted or withheld
to the relevant Governmental Authority in accordance with applicable law.

 

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

 

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

 

(d)                                 The
Borrower shall indemnify the Administrative Agent and any Lender for the full
amount of Non-Excluded Taxes (to the extent the Borrower would be required to
pay additional amounts with respect to such Non-Excluded Taxes pursuant to Section 4.10(a))
or Other Taxes arising in connection with payments made under this Agreement
(including, without limitation, any Non-Excluded Taxes or Other Taxes imposed
by any jurisdiction on amounts payable under this Section 4.10) or any
other Loan Document paid by such Agent or Lender or any of their respective
Affiliates and any liability (including penalties, additions to tax, interest
and expenses) arising therefrom or with respect thereto, whether or not such
Non-Excluded Taxes or Other Taxes were correctly or legally asserted.  Payment under this indemnification shall be
made within ten days from the date the Administrative Agent or any Lender or
any of their respective Affiliates makes written demand therefor; provided,
that the Borrower shall not be required to indemnify the Administrative Agent or
any Lender pursuant to this Section 4.10(d) for any amounts incurred
more than six months prior to the date the Administrative Agent or such Lender
makes such written demand therefor; provided  further that if the
circumstance giving rise to such claim have a retroactive effect, then such six
month period shall be extended to include such period of retroactive effect.

 

(e)                                  Each
Lender (or Transferee) that is not a “U.S. Person” as defined in Section 7701(a)(30)
of the Code (a “Non-U.S. Lender”) shall deliver to the Borrower and the
Administrative Agent (or, in the case of a Participant, to the Lender from
which the related participation shall have been purchased) two copies of either
U.S. Internal Revenue Service Form W-8BEN and/or Form W-8 IMY, as
applicable (claiming benefits of an applicable tax 

 

44

 

treaty) or Form W-8ECI, or, in the case
of a Non-U.S. Lender claiming exemption from U.S. federal withholding tax under
Section 871(h) or 881(c) of the Code with respect to payments of
“portfolio interest”, a statement substantially in the form of Exhibit H
and a Form W-8BEN, or in each case any subsequent versions thereof or
successors thereto, properly completed and duly executed by such Non-U.S.
Lender claiming complete exemption from, or a reduced rate of, U.S. federal
withholding tax on all payments by the Borrower under this Agreement and the
other Loan Documents.  Such forms shall
be delivered by each Non-U.S. Lender on or before the date it becomes a party
to this Agreement (or, in the case of any Participant, on or before the date
such Participant purchases the related participation).  In addition, each Non-U.S. Lender shall
deliver such forms promptly upon the obsolescence or invalidity of any form
previously delivered by such Non-U.S. Lender including, but not limited to, as
a result of any change in applicable law, regulation or treaty, or in any
official application or interpretation thereof. 
Each Non-U.S. Lender shall promptly notify the Borrower at any time it
determines that it is no longer in a position to provide any previously
delivered certificate to the Borrower (or any other form of certification
adopted by the U.S. taxing authorities for such purpose).  Notwithstanding any other provision of this
paragraph, a Non-U.S. Lender shall not be required to deliver any form pursuant
to this paragraph that such Non-U.S. Lender is not legally able to deliver.

 

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

 

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

 

45

 

(h)                                 For
purposes of this Section 4.10, in the case of any Lender that is treated
as a partnership for U.S. federal income tax purposes, any Non-Excluded Taxes
or Other Taxes required to be deducted and withheld by such Lender with respect
to payments made by the Borrower under any Loan Document shall be treated as
Non-Excluded Taxes or Other Taxes required to be deducted by the Borrower, but
only to the extent such Non-Excluded Taxes or Other Taxes would have been required
to be deducted and withheld by the Lender if the Lender were treated as a
corporation for U.S. federal income tax purposes making such payments under the
Loan Documents on behalf of the Borrower.

 

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

 

4.11.                        Indemnity.  The Borrower agrees to indemnify each Lender
and to hold each Lender harmless from any loss or expense that such Lender may
sustain or incur as a consequence of (a) default by the Borrower in making
a borrowing of, conversion into or continuation of Eurodollar Loans after the
Borrower has given a notice requesting the same in accordance with the
provisions of this Agreement (unless Eurodollar Loans are made unavailable to
the Borrower pursuant to Section 4.7 or 4.15), (b) default by the
Borrower in making any prepayment of or conversion from Eurodollar Loans after
the Borrower has given a notice thereof in accordance with the provisions of
this Agreement or (c) the making of a prepayment of Eurodollar Loans on a
day that is not the last day of an Interest Period with respect thereto.  Such indemnification may include an amount
equal to the excess, if any, of (i) the amount of interest that would have
accrued on the amount so prepaid, or not so borrowed, converted or continued,
for the period from the date of such prepayment or of such failure to borrow,
convert or continue to the last day of such Interest Period (or, in the case of
a failure to borrow, convert or continue, the Interest Period that would have
commenced on the date of such failure) in each case at the applicable rate of
interest for such Loans provided for herein (excluding, however, the Applicable
Margin included therein, if any) minus (ii) the amount of interest
(as reasonably determined by such Lender) that would have accrued to such
Lender on such amount by placing such amount on deposit for a comparable period
with leading banks in the interbank eurodollar market.  A certificate as to any amounts payable
pursuant to this Section submitted to the Borrower by any Lender shall
contain calculation of such amount in reasonable detail and shall be conclusive
in the absence of manifest error.  This
covenant shall survive the termination of this Agreement and the payment of the
Loans and all other amounts payable hereunder.

 

4.12.                        Change
of Lending Office.  Each Lender
agrees that, upon the occurrence of any event giving rise to the operation of Section 4.9,
4.10 or 4.15 with respect to such Lender, it will, if requested by the
Borrower, use reasonable efforts (subject to overall policy considerations of
such Lender) to designate another lending office for any Loans affected by such
event with the object of avoiding the consequences of such event; provided,
that such designation is made on terms that, in the reasonable judgment of such
Lender, cause such Lender and its lending office(s) to suffer no economic,
legal or regulatory disadvantage, and provided, further, that nothing in this Section shall
affect or postpone any of the obligations of the Borrower or the rights of any
Lender pursuant to Section 4.9, 4.10 or 4.15.

 

46

 

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

 

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

 

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

 

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

 

47

 

(d)                                 The
Borrower agrees that, upon the request to the Administrative Agent by any
Lender, the Borrower will execute and deliver to such Lender a promissory note of
the Borrower evidencing any Term Loans, Revolving Credit Loans or Swingline
Loans, as the case may be, of such Lender, substantially in the forms of Exhibit I-1,
I-2 or I-3, respectively, with appropriate insertions as to date and principal
amount.

 

4.15.                        Illegality.  Notwithstanding any other provision herein,
if the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof shall make it unlawful for any Lender to
make or maintain Eurodollar Loans as contemplated by this Agreement, (a) the
commitment of such Lender hereunder to make Eurodollar Loans, continue
Eurodollar Loans as such and convert Base Rate Loans to Eurodollar Loans shall
forthwith be suspended until such time as such condition no longer exists, as
determined by the Administrative Agent and (b) such Lender’s Loans then
outstanding as Eurodollar Loans, if any, shall be converted automatically to
Base Rate Loans on the respective last days of the then current Interest
Periods with respect to such Loans or within such earlier period as required by
law.  If any such conversion of a
Eurodollar Loan occurs on a day which is not the last day of the then current
Interest Period with respect thereto, the Borrower shall pay to such Lender
such amounts, if any, as may be required pursuant to Section 4.11.

 

SECTION 5.  REPRESENTATIONS AND WARRANTIES

 

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

 

5.1.                              Financial
Condition.  (a)  The unaudited
pro forma consolidated balance sheet of Holdings and its consolidated
Subsidiaries as at December 31, 2004 (including the notes thereto) (the “Pro
Forma Balance Sheet”), copies of which have heretofore been furnished to
each Lender, has been prepared giving effect (as if such events had occurred on
such date) to (i) the Loans to be made on the Closing Date and the use of
proceeds thereof and (ii) the payment of fees and expenses in connection
with the foregoing.  The Pro Forma
Balance Sheet presents fairly in all material respects on a pro forma basis the
estimated financial position of Holdings and its consolidated Subsidiaries as
at December 31, 2004, assuming that the events specified in the preceding
sentence had actually occurred at such date.

 

(b)                                 The
audited consolidated balance sheets of Holdings as at December 31, 2004
and December 31, 2003, and the related consolidated statements of income
and of cash flows for the fiscal years ended on such dates (including any
related schedules and notes thereto), reported on by and accompanied by a
report from Deloitte & Touche LLP, present fairly in all material
respects the consolidated financial condition of Holdings as at such date, and
the consolidated results of its operations and its consolidated cash flows for
the respective fiscal years then ended. 
All such financial statements, including any related schedules and notes
thereto, have been prepared in accordance with GAAP applied consistently
throughout the periods involved (except as disclosed therein). As of the
Closing Date, no Group Member has any material Guarantee Obligations,
contingent liabilities and liabilities for taxes, or any long-term leases or
unusual forward or long-term commitments, including any interest rate or
foreign currency swap or

 

48

 

exchange transaction or other
obligation in respect of derivatives, that are not reflected in the most recent
financial statements referred to in this paragraph.  During the period from December 31, 2004
to and including the date hereof there has been no Disposition by Holdings or
any of its Subsidiaries of any material part of its business or property.

 

5.2.                              No
Change.  As of the Closing Date, since
December 31, 2004, there has been no development, event or circumstance that,
individually or in the aggregate, has had or could reasonably be expected to
have a Material Adverse Effect.

 

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

 

5.4.                              Power;
Authorization; Enforceable Obligations. 
Each Loan Party has the power and authority, and the legal right, to
make, deliver and perform the Loan Documents to which it is a party and, in the
case of the Borrower, to obtain extensions of credit hereunder.  Each Loan Party has taken all necessary
organizational action to authorize the execution, delivery and performance of
the Loan Documents to which it is a party and, in the case of the Borrower, to
authorize the extensions of credit on the terms and conditions of this
Agreement.  No consent or authorization
of, filing with, notice to or other act by or in respect of, any Governmental
Authority or any other Person is required in connection with the extensions of
credit hereunder or with the execution, delivery, performance, validity or
enforceability of this Agreement or any of the Loan Documents, except (i) consents,
authorizations, filings and notices described in Schedule 5.4, which
consents, authorizations, filings and notices have been obtained or made and are
in full force and effect, (ii) the filings referred to in Section 5.19
and (iii) those consents, authorizations, filings and notices the failure
of which to make or obtain, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.  Each Loan Document has been duly executed and
delivered on behalf of each Loan Party thereto. 
This Agreement constitutes, and each other Loan Document upon execution
will constitute, a legal, valid and binding obligation of each Loan Party
thereto, enforceable against each such Loan Party in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

 

5.5.                              No
Legal Bar.  The execution, delivery
and performance of this Agreement and the other Loan Documents, the issuance of
Letters of Credit, the borrowings hereunder and the use of the proceeds thereof
will not violate any Requirement of Law or any 

 

49

 

material Contractual Obligation of any Group Member and will not result
in, or require, the creation or imposition of any Lien on any of their
respective properties or revenues pursuant to any Requirement of Law or any
such Contractual Obligation (other than the Liens created by the Security
Documents).  No Requirement of Law or
Contractual Obligation (assuming no defaults thereunder) applicable to the
Borrower or any of its Subsidiaries could, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect.

 

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

 

5.7.                              No
Default.  No Group Member is in default
under or with respect to any of its Contractual Obligations in any respect that
could, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

 

5.8.                              Ownership
of Property; Liens.  Each Group Member has good
and marketable title in fee simple to, or a valid leasehold interest in, all
its real property, including the Properties, and good title to, or a valid
leasehold interest in, all its other material property, and none of such
property is subject to any Lien except as permitted by Section 8.3.

 

5.9.                              Intellectual
Property.  Except as could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect, each Group Member owns, or is licensed to use, all Intellectual
Property necessary for the conduct of its business as currently conducted. No
material claim has been asserted and is pending by any Person challenging or
questioning the use of any Intellectual Property or the validity or
effectiveness of any Intellectual Property, nor does Holdings or the Borrower
know of any valid basis for any such claim. 
The use of Intellectual Property by each Group Member does not infringe
on the rights of any Person in any material respect.

 

5.10.                        Taxes.  Each Group Member has filed or caused to be
filed all Federal and State income tax returns and all other material tax
returns that are required to be filed and has paid all taxes shown to be due
and payable on said returns or on any assessments made against it or any of its
Property and all other taxes, fees or other charges imposed on it or any of its
property by any Governmental Authority (other than (a) any the amount or
validity of which are currently being contested in good faith by appropriate
proceedings and with respect to which reserves in conformity with GAAP have
been provided on the books of Holdings, the Borrower or its Subsidiaries, as
the case may be or (b) if the failure to pay would not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect).

 

5.11.                        Federal
Regulations.  No part of the proceeds
of any Loans, and no other extensions of credit hereunder, will be used for “buying”
or “carrying” any “margin stock” within the respective meanings of each of the
quoted terms under Regulation U as now and from time to time hereafter in
effect or for any purpose that violates the provisions of the Regulations 

 

50

 

of the Board.  If requested by
any Lender or the Administrative Agent, the Borrower will furnish to the
Administrative Agent and each Lender a statement to the foregoing effect in
conformity with the requirements of FR Form G-3 or FR Form U-1, as
applicable, referred to in Regulation U.

 

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

 

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

 

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

 

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

 

51

 

directors’ qualifying shares)
of any nature relating to any Capital Stock of the Borrower or any Subsidiary,
except as created by the Loan Documents.

 

5.16.                        Use of
Proceeds.  The proceeds of the Term
Loans shall be used to repay in full the Refinanced Indebtedness and to pay
related fees and expenses.  The proceeds
of the Revolving Loans shall be used, together with the proceeds of the
Swingline Loans and the Letters of Credit, for general corporate purposes.

 

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

 

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

 

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

 

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

 

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

 

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

 

5.18.                        Accuracy
of Information, etc.  No statement or
information contained in this Agreement, any other Loan Document, the
Confidential Information Memorandum or any other document, certificate or
statement (excluding any projections, proforma financial information or estimates)
furnished by or on behalf of any Loan Party to the Administrative Agent or the
Lenders, or any of them, for use in connection with the transactions
contemplated by this Agreement or the other Loan Documents, taken as a whole,
contained as of the date such statement, information, document or certificate
was so furnished (or, in the case of the Confidential Information Memorandum,
as of the date of this Agreement), any untrue statement 

 

52

 

of a material fact or omitted to state a material fact necessary to
make the statements contained herein or therein not misleading.  The projections and pro forma financial
information contained in the materials referenced above are based upon good
faith estimates and assumptions believed by management of the Borrower to be
reasonable at the time made, it being recognized by the Lenders that such
financial information as it relates to future events is not to be viewed as
fact and that actual results during the period or periods covered by such
financial information may differ from the projected results set forth therein
by a material amount.  As of the Closing
Date, there is no fact known to any Loan Party that could, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect that
has not been expressly disclosed herein, in the other Loan Documents, in the
Confidential Information Memorandum or in any other documents, certificates and
statements furnished to the Administrative Agent and the Lenders for use in
connection with the transactions contemplated hereby and by the other Loan
Documents.

 

5.19.                        Security
Documents.  (a)  The Guarantee
and Collateral Agreement is effective to create in favor of the Administrative
Agent, for the benefit of the Secured Parties, a legal, valid and enforceable (except
as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law)) security interest in
the Collateral described therein and proceeds and products thereof.  In the case of the Pledged Stock described in
the Guarantee and Collateral Agreement, when stock certificates representing
such Pledged Stock are delivered to the Administrative Agent, and in the case
of the other Collateral described in the Guarantee and Collateral Agreement,
when financing statements and other filings specified on Schedule 5.19(a) in
appropriate form are filed in the offices specified on Schedule 5.19(a),
the Guarantee and Collateral Agreement shall constitute a fully perfected Lien
on, and security interest in, all right, title and interest of the Loan Parties
in such Collateral and the proceeds thereof, as security for the Obligations
(as defined in the Guarantee and Collateral Agreement), in each case prior and
superior in right to any other Person (except, in the case of Pledged Stock,
Liens arising as a matter of law that do not detract from the value thereof in
any material respect, and in the case of Collateral other than Pledged Stock,
Liens permitted by Section 8.3).

 

(b)                                 Each
of the Mortgages is effective to create in favor of the Administrative Agent,
for the benefit of the Secured Parties, a legal, valid and enforceable (except
as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law)) Lien on the
Mortgaged Properties described therein and proceeds and products thereof, and
when the Mortgages are filed in the offices specified on Schedule 5.19(b),
each such Mortgage shall constitute a fully perfected Lien on, and security
interest in, all right, title and interest of the Loan Parties in the Mortgaged
Properties and the proceeds thereof, as security for the Obligations (as
defined in the relevant Mortgage), in each case prior and superior in right to
any other Person, subject to Liens permitted by Section 8.3.

 

(c)                                  Each
Intellectual Property Security Agreement is effective to create in favor of the
Administrative Agent, for the benefit of the Secured Parties, a legal, valid
and enforceable (except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization,

 

53

 

moratorium or similar laws
affecting the enforcement of creditors’ rights generally and by general
equitable principles (whether enforcement is sought by proceedings in equity or
at law)) security interest in the Intellectual Property Collateral described
therein and the proceeds and products thereof. 
Upon the filing of (i) each Intellectual Property Security
Agreement in the appropriate indexes of the United States Patent and Trademark
Office relative to patents and trademarks, and the United States Copyright
Office relative to copyrights, together with provision for payment of all
requisite fees, and (ii) financing statements in appropriate form for
filing in the offices specified on Schedule 5.19(a), each Intellectual
Property Security Agreement shall constitute a fully perfected Lien on, and
security interest in, all right, title and interest of the Loan Parties in the
Intellectual Property Collateral and the proceeds and products thereof, as
security for the Obligations (as defined in the Guarantee and Collateral
Agreement), in each case prior and superior in right to any other Person
(except Liens permitted by Section 8.3). 
Schedule 1.1(b) lists, as of the Closing Date, each parcel of federally
registered or recorded Intellectual Property, including Intellectual Property
for which an application or filing has been made or is pending in the United
States, held by the Borrower and any of its Subsidiaries.

 

5.20.                        Solvency.  The Loan Parties are, on a consolidated
basis, and after giving effect to the incurrence of all Indebtedness and
obligations being incurred in connection herewith will be and will continue to
be, Solvent.

 

5.21.                        Designated
Senior Debt.  The Obligations of the
Loan Parties hereunder and under the other Loan Documents constitutes “Designated
Senior Indebtedness” for purposes of the Senior Subordinated Notes, and
following the consummation of the Refinancing, no other Indebtedness shall
constitute “Designated Senior Indebtedness” thereunder.

 

5.22.                        Regulation
H.  No Mortgage encumbers improved
real property that is located in an area that has been identified by the
Secretary of Housing and Urban Development as an area having special flood
hazards and in which flood insurance has been made available under the National
Flood Insurance Act of 1968 (except any Mortgaged Properties as to which
such flood insurance as required by Regulation H has been obtained and is in
full force and effect as required by this Agreement).

 

SECTION 6.  CONDITIONS
PRECEDENT

 

6.1.                              Conditions
to Initial Extension of Credit.  The
agreement of each Lender to make the initial extension of credit requested to
be made by it is subject to the satisfaction or waiver, prior to or
concurrently with the making of such extension of credit on the Closing Date,
of the following conditions precedent:

 

(a)                                  Credit
Agreement; Guarantee and Collateral Agreement.  The Administrative Agent shall have received (i) this
Agreement, or, in the case of the Lenders, an Addendum, executed and delivered
by each Agent, Holdings, the Borrower and each Person that is a Lender on the
Closing Date, (ii) the Guarantee and Collateral Agreement, executed and
delivered by Holdings, the Borrower and each Subsidiary Guarantor, (iii) Intellectual
Property Security Agreements executed by the Borrower and any applicable
Guarantor and (iv) an 

 

54

 

Acknowledgment and Consent in the form attached to the Guarantee and
Collateral Agreement, executed and delivered by each Issuer (as defined
therein), if any, that is not a Loan Party.

 

In the event
that any one or more Persons have not executed and delivered an Addendum on the
date scheduled to be the Closing Date (each such Person being referred to
herein as a “Non-Executing Person”), the condition referred to in clause (i) above
shall nevertheless be deemed satisfied if on such date the Borrower and the
Administrative Agent shall have designated one or more Persons (the “Designated
Lenders”) to assume, in the aggregate, all of the Commitments that would
have been held by the “Non-Executing Persons” (subject to each such
Designated Lender’s consent and its execution and delivery of an Addendum).

 

(b)                                 Concurrent
Transactions.  The Administrative
Agent shall have received satisfactory evidence that (i) the Old Credit
Facility shall have been terminated and all amounts thereunder shall have been
paid in full, (ii) an amount of proceeds of the Term Loans sufficient to
repay the Senior Notes in full (together with all required premiums, penalties
and fees) shall have been irrevocably (other than as to the return of any
excess amounts) placed with the trustee for the holders of the Senior Notes solely
for such purpose, and (iii) no Liens shall exist in favor of the holders
of any Refinanced Indebtedness.

 

(c)                                  Pro
Forma Balance Sheet; Financial Statements. 
The Lenders shall have received (i) the Pro Forma Balance Sheet, (ii) audited
consolidated financial statements of Holdings for the 2004 and 2003 fiscal
years and (iii) unaudited interim consolidated financial statements of Holdings
for each quarterly period ended subsequent to the date of the latest applicable
financial statements delivered pursuant to clause (ii) of this paragraph
as to which such financial statements are available, and such financial
statements shall not reflect any material adverse change in the consolidated
financial condition of Holdings, as reflected in the financial statements or
projections contained in the Confidential Information Memorandum.

 

(d)                                 Approvals.  All governmental and material third party
approvals necessary, or in the discretion of the Administrative Agent,
advisable in connection with the Refinancing, the continuing operations of the
Group Members and the transactions contemplated hereby, and the consent of each
landlord of the leased Mortgaged Properties listed on Schedule 1.1(c),
shall have been obtained and be in full force and effect, and all applicable
waiting periods shall have expired without any action being taken or threatened
by any competent authority that would restrain, prevent or otherwise impose
adverse conditions on the Refinancing or the financing contemplated hereby.

 

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

 

(f)                                    Fees.  The Lenders and the Agents shall have
received all fees required to be paid, and all expenses for which invoices have
been presented (including the reasonable fees and expenses of legal counsel),
on or before the Closing Date.  All such
amounts will be paid with 

 

55

 

proceeds of Loans made on the
Closing Date and will be reflected in the funding instructions given by the
Borrower to the Administrative Agent on or before the Closing Date.

 

(g)                                 Closing
Certificate.  The Administrative
Agent shall have received a certificate of each Loan Party, dated the Closing
Date, substantially in the form of Exhibit C, with appropriate insertions
and attachments including the certificate of incorporation of each Loan Party
that is a corporation certified by the relevant authority of the jurisdiction
of organization of such Loan Party and a long form good standing certificate
for each Loan Party from its jurisdiction of organization.

 

(h)                                 Legal
Opinions.  The Lead Arrangers shall
have received the following executed legal opinions:

 

(i)                                     the legal opinion
of Kirkland & Ellis LLP, counsel to the Borrower and its Subsidiaries,
substantially in the form of Exhibit F-1; and

 

(ii)                                  the legal opinion of
local counsel in each of Kansas, Florida and Maine.

 

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

 

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

 

(j)                                     Filings,
Registrations and Recordings.  Each
document (including any Uniform Commercial Code financing
statement) required by the Security Documents or under law or reasonably
requested by the Administrative Agent to be filed, registered or recorded in
order to create in favor of the Administrative Agent, for the benefit of the
Lenders, a perfected Lien on the Collateral described therein, prior and
superior in right to any other Person (other than with respect to Liens
expressly permitted by Section 8.3), shall be in proper form for filing,
registration or recordation.

 

(k)                                  Mortgages,
etc.

 

(i)                                     The Administrative
Agent shall have received a Mortgage with respect to each Mortgaged Property,
executed and delivered by a duly authorized officer of each party thereto in
recordable form in the applicable state in which such Mortgaged Property is
located.

 

(ii)                                  If
requested by the Administrative Agent, the Administrative Agent shall have
received, and the title insurance company issuing the policy referred to 

 

56

 

in clause (iii) below (the “Title Insurance Company”) shall
have received, maps or plats of an as-built survey of the sites of the owned Mortgaged
Properties (it being understood that no surveys shall be required for any of
the leased Mortgaged Properties) certified to the Administrative Agent and the
Title Insurance Company in a manner reasonably satisfactory to them, dated a
date reasonably satisfactory to the Administrative Agent and the Title
Insurance Company by an independent professional licensed land surveyor reasonably
satisfactory to the Administrative Agent and the Title Insurance Company, which
maps or plats and the surveys on which they are based shall be made in
accordance with the Minimum Standard Detail Requirements for Land Title Surveys
jointly established and adopted by the American Land Title Association and the
American Congress on Surveying and Mapping in 1992, and, without limiting the
generality of the foregoing, there shall be surveyed and shown on such maps,
plats or surveys the following: (A) the locations on such sites of all the
buildings, structures and other improvements and the established building
setback lines; (B) all exceptions set forth on Schedule B of the
title insurance policies delivered in clause (iii) below; (C) the
lines of streets abutting the sites and width thereof; (D) all access and
other easements appurtenant to the sites; (E) all roadways, paths,
driveways, easements, encroachments and overhanging projections and similar
encumbrances affecting the site, whether recorded, apparent from a physical
inspection of the sites or otherwise known to the surveyor; (F) any
encroachments on any adjoining property by the building structures and
improvements on the sites; (G) if the site is described as being on a
filed map, a legend relating the survey to said map; and (H) the flood
zone designations, if any, in which the Mortgaged Properties are located.

 

(iii)                               The
Administrative Agent shall have received in respect of each owned Mortgaged
Property (it being understood that no mortgagee’s title insurance policy or
policies shall be required for any of the leased Mortgaged Properties) a
mortgagee’s title insurance policy (or policies) or marked up unconditional
commitment or proforma for such insurance. 
Each such policy shall (A) be in an amount reasonably satisfactory
to the Administrative Agent; (B) be issued at ordinary rates; (C) insure
that the Mortgage insured thereby creates a valid first Lien on such Mortgaged
Property free and clear of all defects and encumbrances, except as disclosed
therein and as reasonably acceptable to the Administrative Agent; (D) name
the Administrative Agent for the benefit of the Lenders as the insured
thereunder; (E) be in the form of ALTA Loan Policy - 1970 (Amended
10/17/70 and 10/17/84) (or equivalent policies); (F) contain such
endorsements and affirmative coverage as the Administrative Agent may
reasonably request and (G) be issued by title companies reasonably satisfactory
to the Administrative Agent (including any such title companies acting as
co-insurers or reinsurers, at the option of the Administrative Agent).  The Administrative Agent shall have received
evidence reasonably satisfactory to it that all premiums in respect of each
such policy, all charges for mortgage recording tax, and all related expenses,
if any, have been paid.

 

(iv)                              The Administrative Agent
shall have received (A) a policy of flood insurance that (1) covers
any parcel of improved owned real property located in a federally recognized
flood zone that is encumbered by any Mortgage, (2) is written in an 

 

57

 

amount not less than the outstanding principal amount of the
indebtedness secured by such Mortgage that is reasonably allocable to such owned
real property or the maximum limit of coverage made available with respect to
the particular type of property under the National Flood Insurance Act
of 1968, whichever is less, and (3) has a term ending not later than
the maturity of the Indebtedness secured by such Mortgage and (B) confirmation
that the Borrower has received the notice required pursuant to Section 208(e)(3) of
Regulation H of the Board.

 

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

 

(l)                                     Solvency
Certificate.  The Lead Arrangers shall
have received and shall be reasonably satisfied with a solvency certificate of
the chief financial officer of the Borrower substantially in the form of Exhibit L,
which shall document the solvency of the Loan Parties after giving effect to
the Refinancing and other transactions contemplated hereby.

 

(m)                               Insurance.  The Administrative Agent shall have received
insurance certificates satisfying the requirements of Section 5.3 of the
Guarantee and Collateral Agreement.

 

(n)                                 Senior
Debt.  An officer of the Borrower shall
certify in writing to the Administrative Agent that the incurrence of
Indebtedness on the Closing Date and at any time thereafter under this
Agreement is permitted under the indenture governing the Senior Subordinated
Notes and that the debt so incurred will constitute Senior Debt and Designated
Senior Debt under and as defined in such indenture.

 

(o)                                 Miscellaneous.  The Administrative Agent shall have received
such other documents, agreements, certificates and information as it shall
reasonably request.

 

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

 

(a)                                  No
Default.  No Default or Event of
Default shall have occurred and be continuing (both prior to, and after giving
effect to such extension of credit).

 

(b)                                 Representations
and Warranties.  Each of the
representations and warranties made by any Loan Party in or pursuant to the
Loan Documents shall be true and correct in all material respects on and as of
such date as if made on and as of such date, and after giving effect to the
extensions of credit requested to be made on such date, except for
representations and warranties which specifically relate to an earlier specific
date, in which case such representations and warranties shall be true and
correct in all material respects as of such earlier date.

 

58

 

(c) 
No Change.  Since December 31,
2004, there has been no development, event or circumstance that, individually
or in the aggregate, has had or could reasonably be expected to have a Material
Adverse Effect.

 

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

 

SECTION 7.  AFFIRMATIVE COVENANTS

 

Holdings and
the Borrower hereby jointly and severally agree that, so long as the
Commitments remain in effect, any Letter of Credit remains outstanding (unless
cash collateralized) or any Loan or other amount (excluding contingent
indemnification obligations for which no claims have been made or obligations with
respect to Hedge Agreements) is owing to any Lender or Agent hereunder, each of
Holdings and the Borrower shall and shall cause each of its Subsidiaries to:

 

7.1.                              Financial
Statements.  Furnish to the Administrative
Agent:

 

(a)                                  as
soon as available, but in any event within 90 days after the end of each
fiscal year of Holdings a copy of the audited consolidated balance sheet of Holdings
and its consolidated Subsidiaries as at the end of such year and the related
audited consolidated statements of income and of cash flows for such year,
setting forth in each case in comparative form the figures for the previous
year, reported on without a “going concern” or like qualification or exception,
or qualification arising out of the scope of the audit, by Deloitte and Touche
LLP or other independent certified public accountants of nationally recognized
standing;

 

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

 

(c)                                  as
soon as available, but in any event not later than 30 days after the end of
each month occurring during each fiscal year of Holdings, calculations showing
the consolidated financial status of Holdings and its consolidated Subsidiaries,
substantially in the form of Exhibit M, as at the end of such month and
the portion of the fiscal year through the end of such month.

 

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

 

59

 

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

 

(a)                                  concurrently
with the delivery of the financial statements referred to in Section 7.1(a),
a certificate of the independent certified public accountants reporting on such
financial statements stating that in making the examination necessary therefor
no knowledge was obtained of any Default or Event of Default, except as
specified in such certificate;

 

(b)                                 concurrently
with the delivery of any financial statements pursuant to Section 7.1(a) or
(b), (i) a certificate of a Responsible Officer stating that such
Responsible Officer has obtained no knowledge of any Default or Event of
Default except as specified in such certificate and (ii) (x) a Compliance
Certificate containing all information and calculations necessary for
determining compliance by each Group Member with the provisions of Sections 8.1
and 8.7 of this Agreement referred to therein as of the last day of the fiscal
quarter or fiscal year of the Borrower, as the case may be, and, if applicable,
for determining the Applicable Margins, and (y) to the extent not previously
disclosed to the Administrative Agent, a listing of any federally registered or
recorded Intellectual Property, including Intellectual Property for which an
application or filing has been made or is pending in the United States,
acquired by any Loan Party since the date of the most recent list delivered
pursuant to this clause (y) (or, in the case of the first such list so
delivered, since the Closing Date);

 

(c)                                  as
soon as available, and in any event no later than 45 days after the end of each
fiscal year of the Borrower, a detailed consolidated budget for the following
fiscal year (including a projected consolidated balance sheet of Holdings and
its Subsidiaries as of the end of the following fiscal year, the related
consolidated statements of projected cash flow, projected income and a
description of the underlying assumptions applicable thereto, collectively, the
“Projections”), which Projections shall in each case be accompanied by a
certificate of a Responsible Officer stating that such Projections are based on
reasonable estimates, information and assumptions believed by the Borrower to
have been reasonable when made, it being recognized that such Projections are
not to be viewed as fact and that actual results during the periods covered by
such Projections may differ from the projected results set forth therein by a
material amount;

 

(d)                                 if
the Borrower or Holdings is not then a reporting company under the Securities
Exchange Act of 1934, as amended, within 90 days after the end of each fiscal
year of the Borrower and within 45 days after the end of each of the first
three fiscal quarters of the Borrower, a narrative discussion and analysis of
the financial condition and results of operations of the Borrower and its
Subsidiaries for such fiscal quarter and for the period from the beginning of
the then current fiscal year to the end of such fiscal quarter, as compared to
the portion of the Projections covering such periods and to the comparable
periods of the previous year;

 

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

 

60

 

(f)                                    promptly,
such additional financial and other information as any Lender may from time to
time reasonably request.

 

7.3.                              Payment
of Obligations.  Except as could not,
individually or in the aggregate, reasonably be expected to cause a Material
Adverse Effect, pay, discharge or otherwise satisfy at or before maturity or
before they become delinquent, as the case may be, all its contractual
obligations of whatever nature, except where the amount or validity thereof is
currently being contested in good faith by appropriate proceedings and reserves
in conformity with GAAP with respect thereto have been provided on the books of
the relevant Group Member.

 

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

 

7.5.                              Maintenance
of Property; Insurance.  (a)  Keep
all property necessary in its business in good working order and condition,
ordinary wear and tear and casualty excepted and (b) maintain with
reputable insurance companies insurance on all its property in at least such
amounts and against at least such risks (but including in any event public
liability, product liability and business interruption) as are usually insured
against in the same general area by similarly situated companies engaged in the
same or a similar business with respect to similar property.

 

7.6.                              Inspection
of Property; Books and Records; Discussions.  (a)  Keep proper books of records and
account in which entries that are full, true and correct in all material
respects in conformity with GAAP and all Requirements of Law shall be made of
all dealings and transactions in relation to its business and activities and (b) at
least once every fiscal year of the Borrower or at any time while an Event of
Default shall have occurred and be continuing, permit representatives of any
Lender (coordinated through the Administrative Agent) to visit and inspect any
of its properties and examine and make abstracts from any of its books and
records during regular business hours and to discuss the business, operations,
properties and financial and other condition of the Group Members with officers
and employees of the Group Members and with their independent certified public
accountants; provided that relevant officers and employees of the Group
Members shall have the right to be present during such discussions.  Nothing in this Section 7.6 shall be
construed to cause the Borrower to divulge any materials covered by an
attorney-client privilege that has not been waived.

 

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

 

61

 

(a)                                  the
occurrence of any Default or Event of Default hereunder or any default or
event of default under the Senior Notes or the Senior Subordinated Notes;

 

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

 

(c)                                  any
litigation or proceeding affecting any Group Member (i) in which the
amount involved is $ 5,000,000 or more (excluding amounts covered by insurance),
(ii) in which injunctive or similar relief is sought with respect to
material operations or (iii) which relates to any Loan Document;

 

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

 

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

 

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

 

7.8.                              Environmental
Laws.  Except as the failure to do so
could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect:

 

(a)                                  Comply in all
material respects with, and ensure compliance in all material respects by all
tenants and subtenants, if any, with, all applicable Environmental Laws, and
obtain and comply in all material respects with and maintain, and ensure that
all tenants and subtenants obtain and comply in all material respects with and
maintain, any and all licenses, approvals, notifications, registrations or
permits required by applicable Environmental Laws.

 

(b)                                 Conduct
and complete all investigations, studies, sampling and testing, and all
remedial, removal and other actions required under Environmental Laws and
promptly comply in all material respects with all lawful orders and directives
of all Governmental Authorities regarding Environmental Laws.

 

7.9.                              Interest
Rate Protection.  In the case of the
Borrower, within 90 days after the Closing Date, enter into, and thereafter
maintain, Hedge Agreements to the extent necessary 

 

62

 

to provide that at least $70,000,000 in aggregate principal amount of the
Term Loans are subject to either a fixed interest rate or interest rate
protection for a period of not less than two years after the Closing Date,
which Hedge Agreements shall have terms and conditions reasonably satisfactory
to the Administrative Agent.

 

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

 

(b)                                 With
respect to (1) any fee interest in any real property having a value (together
with improvements thereof) of at least $2,000,000 acquired after the Closing
Date by any Group Member (other than (x) any such real property subject to a
Lien expressly permitted by Section 8.3(f) and (y) real property
acquired by any Foreign Subsidiary) and (2) any leasehold interest in any
real property acquired after the Closing Date by any Group Member as a
replacement site for the Borrower’s operations currently conducted at 4221 W.
John Carpenter, Irving, TX 75063, following the termination of the existing Lease
of such site, promptly (i) execute and deliver a first priority Mortgage,
in favor of the Administrative Agent, for the benefit of the Secured Parties,
covering such real property, (ii) if requested by the Administrative
Agent, provide the Secured Parties with (x) title and extended coverage
insurance covering such real property in an amount at least equal to the
purchase price of such real property (or such other amount as shall be
reasonably specified by the Administrative Agent) as well as a current ALTA
survey thereof, together with a surveyor’s certificate, all in accordance with
the requirements set forth in Section 6.1(k) and (y) any consents or
estoppels reasonably deemed necessary or advisable by the Administrative Agent
in connection with such Mortgage, each of the foregoing in form and substance
reasonably satisfactory to the Administrative Agent and (iii) if requested
by the Administrative Agent, deliver to the Administrative Agent legal opinions
relating to the matters described above, which opinions shall be in form and
substance, and from counsel, reasonably satisfactory to the Administrative
Agent.  Notwithstanding the foregoing, no
Loan Party shall be deemed in violation of this Section 7.10(b) for
failure to deliver documentation required under clause (2) above if the
Borrower has used all commercially reasonable efforts to do so.

 

(c)                                  With
respect to any new Subsidiary (other than a Foreign Subsidiary) created or
acquired after the Closing Date by any Group Member, promptly (i) execute
and deliver to the Administrative Agent such amendments to the Guarantee and
Collateral Agreement as the 

 

63

 

Administrative Agent reasonably
deems necessary or advisable to grant to the Administrative Agent, for the
benefit of the Secured Parties, a perfected first priority security interest in
the Capital Stock of such new Subsidiary that is owned by any Group Member, (ii) deliver
to the Administrative Agent the certificates representing such Capital Stock,
together with undated stock (or other transfer) powers, in blank, executed and
delivered by a duly authorized officer of the relevant Group Member and (iii) cause
such new Subsidiary (A) to become a party to the Guarantee and Collateral
Agreement, (B) to take such actions necessary or advisable to grant to the
Administrative Agent for the benefit of the Secured Parties a perfected first
priority security interest, subject to, in the case of Capital Stock, Liens
arising as a matter of law that do not detract from the value thereof in any
material respect, and (other than as to the Capital Stock of or held by such
new Subsidiary) Liens permitted by Section 8.3, in the Collateral
described in the Guarantee and Collateral Agreement with respect to such new
Subsidiary, including the filing of Uniform Commercial Code financing
statements in such jurisdictions as may be required by the Guarantee and
Collateral Agreement or by law or as may be requested by the Administrative
Agent and (C) to deliver to the Administrative Agent a certificate of such
Subsidiary, substantially in the form of Exhibit C, with appropriate
insertions and attachments, and (iv) if reasonably requested by the
Administrative Agent, deliver to the Administrative Agent legal opinions
relating to the matters described above, which opinions shall be in form and
substance, and from counsel, reasonably satisfactory to the Administrative
Agent.

 

(d)                                 With
respect to any new Foreign Subsidiary created or acquired after the Closing
Date by any Group Member (other than by any Group Member that is a Foreign
Subsidiary), promptly (i) execute and deliver to the Administrative Agent
such amendments to the Guarantee and Collateral Agreement as the Administrative
Agent deems necessary or advisable to grant to the Administrative Agent, for
the benefit of the Secured Parties, a perfected first priority security
interest in the Capital Stock of such new Subsidiary that is owned by any such
Group Member (provided that in no event shall more than 65% of the total
outstanding voting Capital Stock and 100% of the total outstanding non-voting
Capital Stock of any such new Subsidiary be required to be so pledged) and (ii) deliver
to the Administrative Agent the certificates representing such Capital Stock,
together with undated stock powers, in blank, executed and delivered by a duly
authorized officer of the relevant Group Member, as the case may be, and take
such other action as may be necessary or, in the opinion of the Administrative
Agent, desirable to perfect the Administrative Agent’s security interest
therein, and (iii) if reasonably requested by the Administrative Agent,
deliver to the Administrative Agent legal opinions relating to the matters
described above, which opinions shall be in form and substance, and from
counsel, reasonably satisfactory to the Administrative Agent.

 

7.11.                        Further
Assurances.  From time to time
execute and deliver, or cause to be executed and delivered, such additional
instruments, certificates or documents, and take all such actions, as the
Administrative Agent may reasonably request for the purposes of implementing or
effectuating the provisions of this Agreement and the other Loan Documents, or
of more fully perfecting or renewing the rights of the Administrative Agent and
the Secured Parties with respect to the Collateral (or with respect to any
additions thereto or replacements or proceeds thereof or with respect to any
other property or assets hereafter acquired by the borrower or any Subsidiary
which may be deemed to be part of the Collateral) pursuant hereto or
thereto.  Upon 

 

64

 

the exercise by the
Administrative Agent or any Secured Party of any power, right, privilege or
remedy pursuant to this Agreement or the other Loan Documents which requires
any consent, approval, recording qualification or authorization of any
Governmental Authority, the Borrower will execute and deliver, or will cause
the execution and delivery of, all applications, certifications, instruments and
other documents and papers that the Administrative Agent or such Secured
Parties may be required to obtain from the Borrower or any of its Subsidiaries
for such governmental consent, approval, recording, qualification or
authorization.

 

7.12.                        Post-Closing
Obligations.

 

(a)                                  To
the extent not completed prior to the Closing Date and waived by the Lenders on
such date, deliver to the Administrative Agent on or before the date that is 45
days after the Closing Date any documentation required to be delivered pursuant
to Section 6.1(k)(ii).

 

(b)                                 Furnish
to the Administrative Agent and each Lender, as soon as obtained, a Certificate
and Release for Environmental Conditions issued to the Borrower by the City of
Wichita, Kansas with respect to the Borrower’s property located at 120 E. First
Street, Wichita, Kansas, provided that the Borrower shall use
commercially reasonable efforts to obtain such Certificate and Release on or
before the date that is 360 days after the Closing Date.

 

(c)                                  Within
10 Business Days following the exercise of and conveyance of land under
Borrower’s purchase option with respect to any portion of land related to the
Mortgaged Property located at 800 E. Waterman, Wichita, Kansas, furnish to the
Administrative Agent a modification to the Mortgage thereon delivered on the
Closing Date evidencing Agent’s mortgage lien on such portion of land and an
endorsement from the Title Insurance Company insuring Agent’s first priority
lien in such portion of land, in each case, reasonably satisfactory to Agent.

 

SECTION 8.  NEGATIVE
COVENANTS

 

Holdings and
the Borrower hereby jointly and severally agree that, so long as the
Commitments remain in effect, any Letter of Credit remains outstanding (unless
cash collateralized) or any Loan or other amount is owing (excluding contingent
indemnification obligations for which no claim has been made or obligations
with respect to Hedge Agreements) to any Lender or Agent hereunder, each of
Holdings and the Borrower shall not, and shall not permit any of its
Subsidiaries to, directly or indirectly:

 

8.1.                              Financial
Condition Covenants

 

(a)                                  Consolidated
Leverage Ratio.  Permit the
Consolidated Leverage Ratio as at the last day of any period of four
consecutive fiscal quarters of Holdings ending with any fiscal quarter set forth
below to exceed the ratio set forth below opposite such fiscal quarter:

 

65

 

	
  Fiscal Quarter

  	
   

  	
  Consolidated 

  Leverage Ratio

  	
   

  
	
  Q2 2005

  	
   

  	
  5.25

  	
  x 

  
	
  Q3 2005

  	
   

  	
  5.25

  	
  x 

  
	
  Q4 2005

  	
   

  	
  5.25

  	
  x 

  
	
  Q1 2006

  	
   

  	
  5.25

  	
  x 

  
	
  Q2 2006

  	
   

  	
  5.25

  	
  x 

  
	
  Q3 2006

  	
   

  	
  5.25

  	
  x 

  
	
  Q4 2006

  	
   

  	
  5.00

  	
  x 

  
	
  Q1 2007

  	
   

  	
  5.00

  	
  x 

  
	
  Q2 2007

  	
   

  	
  5.00

  	
  x 

  
	
  Q3 2007

  	
   

  	
  5.00

  	
  x 

  
	
  Q4 2007

  	
   

  	
  4.75

  	
  x 

  
	
  Q1 2008

  	
   

  	
  4.75

  	
  x 

  
	
  Q2 2008

  	
   

  	
  4.75

  	
  x 

  
	
  Q3 2008

  	
   

  	
  4.75

  	
  x 

  
	
  Q4 2008

  	
   

  	
  4.50

  	
  x 

  
	
  Q1 2009

  	
   

  	
  4.50

  	
  x 

  
	
  Q2 2009

  	
   

  	
  4.50

  	
  x 

  
	
  Q3 2009

  	
   

  	
  4.50

  	
  x 

  
	
  Q4 2009

  	
   

  	
  4.25

  	
  x 

  
	
  Q1 2010

  	
   

  	
  4.25

  	
  x 

  
	
  Q2 2010

  	
   

  	
  4.25

  	
  x

  
	
  Q3 2010

  	
   

  	
  4.25

  	
  x

  
	
  Q4 2010 and
  thereafter

  	
   

  	
  4.00

  	
  x

  

 

(b)                                 Consolidated
Interest Coverage Ratio.  Permit the
Consolidated Interest Coverage Ratio for any period of four consecutive fiscal
quarters of Holdings ending with any fiscal quarter set forth below to be less
than the ratio set forth below opposite such fiscal quarter:

 

66

 

	
  Fiscal Quarter

  	
   

  	
  Consolidated Interest

  Leverage Ratio

  	
   

  
	
  Q2 2005

  	
   

  	
  2.35

  	
  x

  
	
  Q3 2005

  	
   

  	
  2.35

  	
  x 

  
	
  Q4 2005

  	
   

  	
  2.35

  	
  x 

  
	
  Q1 2006

  	
   

  	
  2.35

  	
  x 

  
	
  Q2 2006

  	
   

  	
  2.35

  	
  x 

  
	
  Q3 2006

  	
   

  	
  2.35

  	
  x 

  
	
  Q4 2006

  	
   

  	
  2.35

  	
  x 

  
	
  Q1 2007

  	
   

  	
  2.35

  	
  x 

  
	
  Q2 2007

  	
   

  	
  2.35

  	
  x 

  
	
  Q3 2007

  	
   

  	
  2.35

  	
  x 

  
	
  Q4 2007

  	
   

  	
  2.50

  	
  x 

  
	
  Q1 2008

  	
   

  	
  2.50

  	
  x 

  
	
  Q2 2008

  	
   

  	
  2.50

  	
  x 

  
	
  Q3 2008

  	
   

  	
  2.50

  	
  x 

  
	
  Q4 2008

  	
   

  	
  2.50

  	
  x 

  
	
  Q1 2009

  	
   

  	
  2.50

  	
  x 

  
	
  Q2 2009

  	
   

  	
  2.50

  	
  x 

  
	
  Q3 2009

  	
   

  	
  2.50

  	
  x 

  
	
  Q4 2009 and
  thereafter

  	
   

  	
  2.75

  	
  x 

  

 

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

 

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

 

(b)                                 Indebtedness
(i) of the Borrower to any Subsidiary, (ii) of any Wholly Owned
Subsidiary Guarantor to the Borrower or any other Subsidiary, (iii) of any
Foreign Subsidiary to any Foreign Subsidiary and (iv) subject to Section 8.8(p),
of any Foreign Subsidiary to the Borrower or any Subsidiary Guarantor; provided
that such Indebtedness shall be evidenced by a Subordinated Intercompany Note,
which Subordinated Intercompany Note shall (to the extent representing
Obligations of a Loan Party) be pledged to the Administrative Agent;

 

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

 

(d)                                 the
Senior Subordinated Notes outstanding on the Closing Date and any Permitted
Refinancing thereof;

 

(e)                                  Indebtedness
(including Capital Lease Obligations) secured by Liens permitted by Section 8.3(f) in
an aggregate principal amount not to exceed $ 10,000,000 at any one time
outstanding;

 

(f)                                    Hedge
Agreements permitted under Section 8.12;

 

67

 

(g)                                 to
the extent the Loan Parties demonstrate pro forma covenant compliance after
giving effect to the incurrence thereof, Indebtedness of any Subsidiary of the
Borrower that was not a Subsidiary on the Closing Date existing at the time
such other Person became a Subsidiary of the Borrower; provided such
Indebtedness was not incurred in connection with, or in contemplation of, such
other Person becoming such a Subsidiary;

 

(h)                                 Indebtedness
arising from agreements providing for indemnification, adjustment of purchase
price or similar obligations, or from guarantees or letters of credit, securing
the performance of such Loan Party or any Subsidiary pursuant to such
agreements, in connection with Permitted Acquisitions or Dispositions permitted
hereunder of any business, assets or Subsidiary of such Loan Party or any of
its Subsidiaries;

 

(i)                                     Indebtedness
incurred in the ordinary course of business in connection with the financing of
insurance premiums;

 

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

 

(k)                                  Indebtedness
of Foreign Subsidiaries not to exceed a principal amount of $5,000,000 at any
one time outstanding;

 

(l)                                     Indebtedness
in respect of taxes, assessments or governmental charges to the extent that
payment thereof shall not at the time be required to be made hereunder;

 

(m)                               until
April 21, 2005, up to $164,300,000 of the Senior Notes;

 

(n)                                 to
the extent permitted by applicable law, Indebtedness consisting of deferred
purchase price or notes issued to officers, directors, consultants and
employees to purchase or redeem equity interests (or option or warrants or
similar instruments) of a Loan Party or its Subsidiaries;

 

(o)                                 to
the extent constituting Indebtedness, obligations under incentive, non-compete,
consulting, deferred compensation or other similar arrangements satisfactory to
the Administrative Agent;

 

(p)                                 unsecured
Indebtedness issued in connection with Permitted Acquisitions or to Sponsor
and/or its Control Investment Affiliates, which Indebtedness (and any
guarantees thereof) is subordinated to the Loans (and the guarantees thereof
pursuant to the Guarantee and Collateral Agreement) and on terms reasonably
acceptable to the Administrative Agent, including but not limited to PIK
treatment of any interest and the tenor of such Indebtedness;

 

(q)                                 Indebtedness
consisting of letters of credit for the account of the Borrower in existence on
the Closing Date with a face amount of up to $2,000,000; and

 

(r)                                    other
Indebtedness incurred in the ordinary course of business in an aggregate
principal amount which shall not exceed $15,000,000 at any one time
outstanding.

 

68

 

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

 

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

 

(b)                                 carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s landlord’s or other like
Liens arising in the ordinary course of business that are not overdue for a
period of more than 90 days or that are being contested diligently in good
faith and by appropriate proceedings;

 

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

 

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

 

(e)                                  easements,
rights-of-way, restrictions and other similar encumbrances incurred in the
ordinary course of business that, in the aggregate, are not substantial in
amount and that do not in any case materially detract from the value of the
property subject thereto or materially interfere with the ordinary conduct of
the business of the Borrower or any of its Subsidiaries;

 

(f)                                    Liens
securing Indebtedness of the Borrower or any other Subsidiary incurred pursuant
to Section 8.2(e) to finance the acquisition of fixed or capital
assets, provided that (i) such Liens shall be created within 90
days after the acquisition of such fixed or capital assets, and (ii) such
Liens do not at any time encumber any property other than the property financed
by such Indebtedness;

 

(g)                                 Liens
created pursuant to the Security Documents;

 

(h)                                 judgment
Liens securing judgments not constituting an Event of Default under Section 9(h);

 

(i)                                     purported
Liens evidenced by the filing of precautionary UCC financing statements
relating solely to operating leases of personal property entered into in the
ordinary course of business;

 

(j)                                     Liens
securing Indebtedness in an amount of not more than $5,000,000 in the aggregate
at any time outstanding permitted by Section 8.2(g); provided such
Liens were not granted in connection with, or in contemplation of, the obligor
on such Indebtedness becoming such a Subsidiary and do not exceed the value of
the assets acquired when such obligor became a Subsidiary;

 

69

 

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

 

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

 

(m)                               Liens
deemed to exist in connection with permitted repurchase obligations or set-off
rights;

 

(n)                                 replacement,
extension or renewal of any Lien permitted herein in the same property
theretofore subject thereto; provided the amount of Indebtedness secured
thereby is not increased;

 

(o)                                 Liens
securing reimbursement obligations in respect of documentary letters of credit
or bankers’ acceptances; provided that such Liens attach only to the documents,
the goods covered thereby and the proceeds thereof;

 

(p)                                 rights
of setoff or bankers’ Liens upon deposits of cash in favor of banks or other
depository institutions and Liens associated with overdraft protection and
netting services;

 

(q)                                 Liens
in connection with the financing of insurance premiums, provided such Liens
shall not exceed the amount of such premiums so financed;

 

(r)                                    Liens
arising as a matter of law encumbering customary initial deposits and margin
deposits, and similar Liens and margin deposits, and similar Liens attaching to
commodity trading accounts or other brokerage accounts incurred in the ordinary
course of business;

 

(s)                                  Liens
in favor of collecting banks arising under Section 4-210 of the UCC;

 

(t)                                    Liens
on the assets of Foreign Subsidiaries, to the extent securing Indebtedness
permitted hereunder; and

 

(u)                                 other
Liens not specifically listed above securing Indebtedness not to exceed $5,000,000
outstanding at any one time in the aggregate.

 

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

 

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

 

70

 

(b)                                 any
Subsidiary of the Borrower may Dispose of any or all of its assets (upon
voluntary liquidation or otherwise) to the Borrower or any Subsidiary Guarantor
or, subject to Section 8.8(p), any Foreign Subsidiary; and

 

(c)                                  POI
Acquisition I, Inc. may be merged into Holdings; provided that
Holdings shall be the continuing or surviving corporation and shall take on no
additional liabilities or operations as a result of such merger.

 

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

 

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

 

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

 

(c)                                  Dispositions
permitted by Section 8.4(b);

 

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

 

(e)                                  Allotted
Dispositions;

 

(f)                                    Dispositions
of Property, in any transaction or series of related transactions, that do not yield
gross proceeds to any Group Member (valued at the initial principal amount
thereof in the case of non-cash proceeds consisting of notes or other debt
securities and valued at fair market value in the case of other non-cash
proceeds) in excess of $500,000;

 

(g)                                 The
granting of discounts or forgiveness of account receivables in the ordinary
course of business or in connection with collection or compromise thereof;

 

(h)                                 any
Loan Party and its Subsidiaries may sell or otherwise dispose of cash and Cash
Equivalents;

 

(i)                                     any
Loan Party and its Subsidiaries may sell, for fair market value, non-core
assets acquired in connection with permitted Investments;

 

(j)                                     any
Loan Party and its Subsidiaries may incur Liens permitted under Section 8.3;
and

 

(k)                                  any
Loan Party may sell or otherwise dispose of Investments set forth on Schedule 8.8.

 

8.6.                              Restricted
Payments.  Declare or pay any
dividend (other than dividends payable solely in common stock of the Person
making such dividend) on, or make any payment on account of, or set apart
assets for a sinking or other analogous fund for, the purchase,

 

71

 

redemption, defeasance, retirement or other acquisition of, any Capital
Stock of any Group Member, whether now or hereafter outstanding, or make any
other distribution in respect thereof, either directly or indirectly, whether
in cash or property or in obligations of Holdings, the Borrower or any
Subsidiary (collectively, “Restricted Payments”), except that:

 

(a)                                  any
Subsidiary may make Restricted Payments to the Borrower or any Subsidiary
Guarantor;

 

(b)                                 so
long as no Default or Event of Default shall have occurred and be continuing or
would result therefrom, the Borrower may pay dividends to Holdings to permit
Holdings to (i) purchase Holdings’ common stock or common stock options from
present or former officers, directors, consultants or employees of any Group
Member (or the respective estates, spouses or family members) upon the death,
disability or termination of employment of such officer or employee to repay
Indebtedness previously issued to such Person, provided, that the
aggregate amount of cash payments under this clause (i) after the date
hereof (net of any proceeds received by Holdings and contributed to the
Borrower after the date hereof in connection with (a) resales of any
common stock or common stock options so purchased or (b) equity issuances
by Holdings (to the extent not required to be otherwise applied pursuant to Section 4.2(a))
shall not exceed $2,000,000 in any calendar year or $5,000,000 in the aggregate
and (ii) pay fees expressly permitted by Section 8.10(e); and

 

(c)                                  the
Borrower may pay dividends to Holdings to permit Holdings to (i) pay
corporate overhead expenses incurred in the ordinary course of business, (ii) pay
any taxes that are due and payable by Holdings as the parent of a consolidated
or combined group that includes the Borrower, in an amount not to exceed the
lesser of (x) the relevant amount of any taxes (including any penalties and
interest) that the Borrower would owe if the Borrower were filing a separate
tax return (or a separate consolidated or combined return with its Subsidiaries
that are members of the consolidated or combined group), taking into account
any carryovers or carrybacks of tax attributes (such as operating losses) of
the Borrower and such Subsidiaries from other taxable years and (y) the net
amount of the relevant tax that Holdings actually owes to the appropriate
taxing authority; provided that any such payment in respect of taxes
received by Holdings shall be paid over to the appropriate taxing authority
within 30 days of Holdings’ receipt of such payments or shall be refunded to
the Borrower, (iii) pay expense reimbursements pursuant to the Management
Agreement substantially in the form most recently delivered to the
Administrative Agent prior to the Closing Date, and without further
modification thereto as to amounts payable thereunder, and (iv) so long as
no Default or Event of Default has occurred and is continuing, pay amounts due
and owing on preferred equity of Holdings issued to refinance the Senior
Subordinated Notes provided that the coupon on such preferred equity shall be
no higher than the rate of interest on the Senior Subordinated Notes.

 

8.7.                              Capital
Expenditures; Net Cash Investment Costs. 
(a) Make any Capital Expenditure, except (i) Capital
Expenditures of the Borrower and its Subsidiaries not exceeding, for the 2005 fiscal
year, $15,000,000, and $10,000,000 for each subsequent fiscal year; provided,
that (A) up to 50% of any such amount referred to above (but in no event
more than $2,500,000 in any fiscal year), if not so expended in the fiscal year
for which it is permitted, may be carried over for expenditure in the next
succeeding fiscal year and (B) Capital Expenditures made 

 

72

 

pursuant to this clause (i) during any fiscal year shall be deemed
made, first, in respect of amounts carried
over from the prior fiscal year pursuant to subclause (A) above, and second, to amounts permitted for such fiscal year as
provided above, (ii) Capital Expenditures made with the proceeds of any
Reinvestment Deferred Amount, (iii) Capital Expenditures made as a tenant
in leasehold improvements to the extent reimbursable by landlord pursuant to
evidence satisfactory to the Administrative Agent, (iv) Capital
Expenditures that are Permitted Acquisitions, and (v) Capital Expenditures
made with the proceeds of (x) equity issuances of Holdings concurrently with
the issuance thereof, to the extent the Net Cash Proceeds thereof are not
required to be applied to mandatory prepayments pursuant to Section 4.2(a) or
(y) issuances of subordinated Indebtedness permitted under Section 8.2(p).

 

(b)   Incur any Net Cash Investment Costs, except (i) Net
Cash Investment Costs of the Borrower and its Subsidiaries in the ordinary
course of business not exceeding for any fiscal year the following amount with
respect to such fiscal year:

 

	
  Fiscal Year

  	
   

  	
  Net Cash Investment Costs

  	
   

  
	
  2005

  	
   

  	
  $

  	
  53,000,000

  	
   

  
	
  2006

  	
   

  	
  $

  	
  58,000,000

  	
   

  
	
  2007

  	
   

  	
  $

  	
  62,500,000

  	
   

  
	
  2008

  	
   

  	
  $

  	
  66,000,000

  	
   

  
	
  2009

  	
   

  	
  $

  	
  70,000,000

  	
   

  
	
  2010 and
  each fiscal year thereafter

  	
   

  	
  $

  	
  72,500,000

  	
   

  

 

provided
that (A) up to 50% of any such amount referred to above (but in no event
more than $5,000,00 in any fiscal year), if not so expended in the fiscal year
for which it is permitted, may be carried over for expenditure in the next
succeeding fiscal year, and (B) Net Cash Investment Costs incurred
pursuant to this clause (i) during any fiscal year shall be deemed made, first, in respect of amounts carried over from the prior
fiscal year pursuant to subclause (A) above, and second,
to amounts permitted for such fiscal year as provided above; and (ii) Net
Cash Investment Costs made with the proceeds of any Reinvestment Deferred
Amount.

 

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

 

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

 

(b)                                 Investments
in Cash Equivalents;

 

(c)                                  Guarantee
Obligations permitted by Section 8.2;

 

73

 

(d)                                 loans
and advances to employees of any Group Member in the ordinary course of
business (including for travel, entertainment and relocation expenses) in an
aggregate amount for all Group Members not to exceed $1,000,000 at any one time
outstanding;

 

(e)                                  Investments
in assets useful in the business of the Borrower and its Subsidiaries made by
the Borrower or any of its Subsidiaries with the proceeds of any Reinvestment
Deferred Amount (provided that any such Investments constituting Investments in
Foreign Subsidiaries shall be included in the maximum amount permitted under Section 8.8(p),
notwithstanding the exclusion in such clause regarding proceeds of Reinvestment
Deferred Amounts);

 

(f)                                    intercompany
Investments by any Group Member in the Borrower or any Person that, prior to
such Investment, is a Subsidiary Guarantor; provided that any such Investment
in the form of loans or advances shall be evidenced by a Subordinated
Intercompany Note which shall (to the extent representing obligations owed to a
Loan Party) be pledged to the Administrative Agent;

 

(g)                                 Permitted
Acquisitions and Capital Expenditures permitted under this Agreement;

 

(h)                                 Hedge
Agreements entered into for non-speculative purposes and otherwise permitted
under this Agreement;

 

(i)                                     earnest
money deposits required in connection with Permitted Acquisitions;

 

(j)                                     any
Loan Party may capitalize or forgive any Indebtedness owed to it by any other
Loan Party;

 

(k)                                  Investments
acquired in connection with Permitted Acquisitions;

 

(l)                                     Investments
acquired in connection with the settlement of accounts, bankruptcy or
reorganization of suppliers or customers;

 

(m)                               Investments
received as the non-cash portion of consideration received in connection with
Dispositions permitted under this Agreement;

 

(n)                                 to
the extent permitted by applicable law, any Loan Party and its Subsidiaries may
accept notes from officers, directors and employees in exchange for equity
interests purchased by such officers, directors or employees pursuant to a
stock ownership or purchase plan or compensation plan of such Loan Party or
Subsidiary;

 

(o)                                 the
Borrower or any of its Subsidiaries may make a loan to, or an Investment in,
Holdings that could otherwise be made as a Restricted Payment;

 

(p)                                 in
addition to Investments otherwise expressly permitted by this Section,
Investments by the Borrower or any of its Subsidiaries in an aggregate amount (valued
at cost) not to exceed $10,000,000 during the term of this Agreement (excluding
any Investment made 

 

74

 

 

with the proceeds of (x) any
Reinvestment Deferred Amount or (y) equity issuances of Holdings not otherwise
required to be applied pursuant to Section 4.2(a)); and

 

(q)                                 Investments
existing on the Closing Date set forth on Schedule 8.8.

 

The amount of any Investment shall be the initial
amount of such Investment less all repayments, returns, dividends and
distributions received in respect of such Investment and less all liabilities
expressly assumed by another person in connection with the sale of such Investment.

 

8.9.                              Optional
Payments and Modifications of Certain Debt Instruments.  (a)  Make any optional or voluntary
payment, prepayment, repurchase or redemption of or otherwise optionally or
voluntarily defease or segregate funds with respect to any Indebtedness the
payment of principal and interest of which and other obligations of the
Borrower or any of its Subsidiaries in respect of which are subordinated to the
prior payment in full of the obligations hereunder (other than the Senior
Subordinated Notes, which may be refinanced with the proceeds of a Permitted
Refinancing or an equity issuance of Holdings pursuant to the terms hereof), (b) amend,
modify, waive or otherwise change, or consent or agree to any amendment,
modification, waiver or other change to, any of the terms of any Indebtedness
described in clause (a) (including the Senior Subordinated Notes) (other
than any such amendment, modification, waiver or other change that (i) would
extend the maturity or reduce the amount of any payment of principal thereof or
reduce the rate or extend any date for payment of interest thereon or (ii) could
not reasonably be expected to increase the obligations of the obligor or confer
additional rights on the holder of such subordinated Indebtedness, in each case,
in a manner reasonably expected to be materially adverse to the interests of
the Lenders; or (c) designate any Indebtedness (other than obligations of
the Loan Parties pursuant to the Loan Documents) as “Designated Senior Indebtedness”
(or any other defined term having a similar purpose) for the purposes of the indenture
governing the Senior Subordinated Notes or any Permitted Refinancing thereof.

 

8.10.                        Transactions
with Affiliates.  Enter into any
transaction, including any purchase, sale, lease or exchange of property, the
rendering of any service or the payment of any management, advisory or similar
fees, with any Affiliate (other than Holdings, the Borrower or any Wholly Owned
Subsidiary Guarantor) unless such transaction is (a) otherwise permitted under
this Agreement or (b) upon fair and reasonable terms no less favorable to
the relevant Group Member than it would obtain in a comparable arm’s length
transaction with a Person that is not an Affiliate.  Notwithstanding the foregoing, (i) Holdings
may enter into the merger with POI Acquisition I, Inc. as permitted by Section 8.4(c) (which
merger may be accomplished by an exchange of the existing shares of Holdings
held by such entity for identical shares of Holdings which are concurrently
distributed to the equityholders of POI Acquisition I, Inc. in accordance
with their interests therein and immediately followed by the dissolution of POI
Acquisition I, Inc.), and (ii) the Borrower and its Subsidiaries may:

 

(a)                                  pay compensation, expense reimbursement and indemnities to
officers and directors of the Loan Parties and their Subsidiaries in the
ordinary course of business;

 

75

 

(b)                                 enter into employment contracts with officers and management
of the Loan Parties and their Subsidiaries;

 

(c)                                  engage in transactions solely among Foreign Subsidiaries;

 

(d)                                 pay
expense reimbursements pursuant to the Management Agreement substantially in
the form most recently delivered to the Administrative Agent prior to the Closing
Date, and without further modification thereto as to amounts payable thereunder;
and

 

(e)                                  so
long as no Default or Event of Default shall have occurred and be continuing,
pay to the Sponsor and its Control Investment Affiliates monitoring and
transactions fees pursuant to the Management Agreement substantially in the
form most recently delivered to the Administrative Agent prior to the Closing
Date, and without further modification thereto as to amounts payable thereunder;
provided that the aggregate amount of monitoring fees paid in cash shall
not to exceed $1,500,000 in any fiscal year of Holdings; provided  further,
that such fees not paid shall accrue and be paid when the applicable Default or
Event of Default has been cured or waived and no additional Default or Event of
Default has occurred and is continuing or would arise as a result of such
payment.

 

8.11.                        Sales
and Leasebacks.  Enter into any
arrangement with any Person providing for the leasing by any Group Member of
real or personal property that has been or is to be sold or transferred by such
Group Member to such Person or to any other Person to whom funds have been or
are to be advanced by such Person on the security of such property or rental
obligations of such Group Member.

 

8.12.                        Hedge
Agreements.  Enter into any Hedge
Agreement, except Hedge Agreements entered into in order to effectively cap,
collar or exchange interest rates (from fixed to floating rates, from one
floating rate to another floating rate or otherwise) with respect to any interest-bearing
liability or investment of the Borrower or any Subsidiary.

 

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

 

8.14.                        Negative
Pledge Clauses.  Enter into or suffer
to exist or become effective any agreement that prohibits or limits the ability
of any Group Member to create, incur, assume or suffer to exist any Lien upon
any of its property or revenues, whether now owned or hereafter acquired, other
than (a) this Agreement and the other Loan Documents, (b) any
agreements governing any purchase money Liens or Capital Lease Obligations
otherwise permitted hereby (in which case, any prohibition or limitation shall
only be effective against the assets financed thereby), (c) the
documentation evidencing the Senior Subordinated Notes and any Permitted
Refinancing thereof, (d) contained in agreements relating to the sale of a
Subsidiary permitted hereunder pending such sale and only with respect to the
specific property subject to sale, (e) contained in agreements evidencing
Indebtedness permitted under Section 8.2(k), solely with respect to
property of Foreign Subsidiaries and (f) contained in licenses or leases
entered into in the ordinary course of business.

 

76

 

8.15.                        Clauses
Restricting Subsidiary Distributions. 
Enter into or suffer to exist or become effective any consensual
encumbrance or restriction on the ability of any Subsidiary of the Borrower to (a) make
Restricted Payments in respect of any Capital Stock of such Subsidiary held by,
or pay any Indebtedness owed to, the Borrower or any other Subsidiary of the
Borrower, (b) make loans or advances to, or other Investments in, the
Borrower or any other Subsidiary of the Borrower or (c) transfer any of
its assets to the Borrower or any other Subsidiary of the Borrower, except for
such encumbrances or restrictions existing under or by reason of (i) any
restrictions existing under the Loan Documents, (ii) any restrictions with
respect to a Subsidiary imposed pursuant to an agreement that has been entered
into in connection with the Disposition of all or substantially all of the
Capital Stock or assets of such Subsidiary, (iii) contained in the
documentation evidencing the Senior Subordinated Notes and any Permitted
Refinancing thereof, (iv) contained in licenses or leases entered into in the
ordinary course of business, (v) contained in agreements relating to the
sale of assets permitted hereunder pending such sale and only with respect to
the specific property subject to sale, and (vi) contained in agreements
evidencing Indebtedness permitted under Section 8.2(k), solely with
respect to property of Foreign Subsidiaries.

 

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

 

8.17.                        Limitations
on the Activities of Holdings.  In the case of Holdings,
notwithstanding anything to the contrary in this Agreement or any other Loan
Document, (a) conduct, transact or otherwise engage in, or commit to
conduct, transact or otherwise engage in, any material business or operations
other than those incidental to its ownership of the Capital Stock of the
Borrower and activities incidental to the maintenance of its corporate
existence, (b) incur, create, assume or suffer to exist any material Indebtedness
or other liabilities or financial obligations, except (i) nonconsensual
obligations imposed by operation of law, (ii) pursuant to the Loan
Documents to which it is a party and (iii) obligations with respect to its
Capital Stock, or (c) own, lease, manage or otherwise operate any material
properties or assets (including cash (other than cash received in connection
with dividends made by the Borrower in accordance with Section 8.6 pending
application in the manner contemplated by said Section or cash to be
contributed to the Borrower) and cash equivalents) other than the ownership of
shares of Capital Stock of the Borrower.

 

SECTION 9.  EVENTS OF DEFAULT

 

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

 

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

 

77

 

(b)                                 any
representation or warranty made or deemed made by any Loan Party herein or in
any other Loan Document or that is contained in any certificate, document or
financial or other statement furnished by it at any time under or in connection
with this Agreement or any such other Loan Document shall prove to have been
inaccurate in any material respect on or as of the date made or deemed made
except for representations and warranties which specifically relate to an
earlier specific date, in which case such representations and warranties shall
have been inaccurate in any material respect as of such earlier date; or

 

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

 

(d)                                 any
Loan Party shall default in the observance or performance of any other agreement
contained in this Agreement or any other Loan Document (other than as provided
in paragraphs (a) through (c) of this Section), and such default
shall continue for a period of 30 days after the earlier of (i) an officer
of such Loan Party becoming aware of such default or (ii) receipt by the
Borrower of notice from the Administrative Agent or any Lender of such default;
or

 

(e)                                  any
Group Member shall (i) default in making any payment of any principal of
any Indebtedness (including any Guarantee Obligation, but excluding the Loans)
on the scheduled or original due date with respect thereto; or (ii) default
in making any payment of any interest on any such Indebtedness beyond the
period of grace, if any, provided in the instrument or agreement under which such
Indebtedness was created; or (iii) default in the observance or
performance of any other agreement or condition relating to any such
Indebtedness or contained in any instrument or agreement evidencing, securing
or relating thereto, or any other event shall occur or condition exist, the
effect of which default or other event or condition is to cause, or to permit
the holder or beneficiary of such Indebtedness (or a trustee or agent on behalf
of such holder or beneficiary) to cause, with the giving of notice if required,
such Indebtedness to become due prior to its stated maturity or to become
subject to a mandatory offer to purchase by the obligor thereunder or (in the
case of any such Indebtedness constituting a Guarantee Obligation) to become
payable; provided, that a default, event or condition described in
clause (i), (ii) or (iii) of this paragraph (e) shall not at any
time constitute an Event of Default unless, at such time, one or more defaults,
events or conditions of the type described in clauses (i), (ii) and (iii) of
this paragraph (e) shall have occurred and be continuing with respect to
Indebtedness the outstanding principal amount of which exceeds in the aggregate
$15,000,000; or

 

(f)                                    (i) any
Group Member shall commence any case, proceeding or other action (A) under
any existing or future law of any jurisdiction, domestic or foreign, relating
to bankruptcy, insolvency, reorganization, administration or relief of debtors,
seeking to have an order for relief entered with respect to it, or seeking to
adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement,
adjustment, winding-up, liquidation, dissolution, composition, receivership or
other relief with respect to it or its debts, or (B) seeking appointment
of a receiver, trustee, custodian, conservator or other similar official for it
or for all

 

78

 

or any substantial part of its
assets, or any Group Member shall make a general assignment for the benefit of
its creditors; or (ii) there shall be commenced against any Group Member
any case, proceeding or other action of a nature referred to in clause (i) above
that (A) results in the entry of an order for relief or any such
adjudication or appointment or (B) remains undismissed, undischarged or
unbonded for a period of 60 days; or (iii) there shall be commenced
against any Group Member any case, proceeding or other action seeking issuance
of a warrant of attachment, execution, distraint or similar process against all
or any substantial part of its assets that results in the entry of an order for
any such relief that shall not have been vacated, discharged, or stayed or
bonded pending appeal within 60 days from the entry thereof; or (iv) any
Group Member shall take any action in furtherance of, or indicating its consent
to, approval of, or acquiescence in, any of the acts set forth in clause (i),
(ii), or (iii) above; or (v) any Group Member shall generally not, or
shall be unable to, or shall admit in writing its inability to generally, pay
its debts as they become due; or

 

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

 

(h)                                 one
or more judgments or decrees shall be entered against any Group Member
involving in the aggregate a liability (excluding amounts covered by insurance
as to which the relevant insurance company has not denied coverage, after
reaching a final decision regarding such coverage) of $15,000,000 or more, and
all such judgments or decrees shall not have been vacated, discharged, stayed
or bonded pending appeal within 45 days from the entry thereof; or

 

(i)                                     any
of the Security Documents (except those that relate solely to an immaterial
portion of the Collateral) shall cease, for any reason, to be in full force and
effect, or any Loan Party or any Affiliate of any Loan Party shall so assert,
or any Lien created by any of the Security Documents (other than any such Lien
on an immaterial portion of the Collateral) shall cease to be enforceable and
of the same effect and priority purported to be created thereby; or

 

79

 

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

 

(k)                                  (i) at
any time prior to a Qualified PO, the Permitted Investors shall fail to own
directly or indirectly, beneficially and of record, Capital Stock representing
at least 51% of the aggregate ordinary voting power and aggregate equity value
represented by the issued and outstanding Capital Stock of Holdings; (ii) after
a Qualified PO, any “person” or “group” (within the meaning of Rule 13d-5
of the Securities Exchange Act of 1934 as in effect on the date hereof) other
than the Permitted Investors shall own directly or indirectly, beneficially or
of record, Capital Stock representing either (A) more than 35% of either
the aggregate ordinary voting power or the aggregate equity value represented
by the issued and outstanding Capital Stock of Holdings or (B) a greater
percentage of either the aggregate ordinary voting power or the aggregate
equity value represented by the issued and outstanding Capital Stock of
Holdings then held, directly or indirectly, beneficially and of record, by the
Permitted Investors; (iii) a majority of the seats (other than vacant
seats) on the board of directors of Holdings shall at any time be occupied by
persons who are not Continuing Directors; (iv) Holdings shall at any time
fail to own directly or indirectly, beneficially and of record, 100% of each
class of issued and outstanding Capital Stock of the Borrower free and clear of
all Liens (other than Liens created by the Guarantee and Collateral Agreement
and Liens arising as a matter of law that do not detract from the value thereof
in any material respect); or (v) a Specified Change of Control shall
occur; or

 

(l)                                     the
Senior Subordinated Notes, any Permitted Refinancing thereof or the guarantees
thereof shall cease, for any reason, to be validly subordinated to the
Obligations or the obligations of the Subsidiary Guarantors under the Guarantee
and Collateral Agreement, as the case may be, as provided in the documentation
governing such Senior Subordinated Notes or Permitted Refinancing thereof, as
the case may be, or any Loan Party, any Affiliate of any Loan Party, the
trustee in respect of the Senior Subordinated Notes (or such Permitted
Refinancing thereof) or the holders of at least 25% in aggregate principal
amount of the Senior Subordinated Notes (or Indebtedness comprising such
Permitted Refinancing thereof) shall so assert; then, and in any such event, (A) if
such event is an Event of Default specified in clause (i) or (ii) of
paragraph (f) above with respect to the Borrower, automatically the
Commitments shall immediately terminate and the Loans hereunder (with accrued
interest thereon) and all other amounts owing under this Agreement and the
other Loan Documents (including all amounts of L/C Obligations, whether or not
the beneficiaries of the then outstanding Letters of Credit shall have
presented the documents required thereunder) shall immediately become due and
payable, and (B) if such event is any other Event of Default, either or
both of the following actions may be taken: 
(i) with the consent of the Required Lenders, the Administrative
Agent may, or upon the request of the Required Lenders, the Administrative
Agent shall, by notice to the Borrower declare the Revolving Commitments to be
terminated forthwith, whereupon the Revolving Commitments shall immediately
terminate; and (ii) with the consent of the Required Lenders, the
Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall, by notice to the Borrower, declare the Loans
hereunder (with accrued interest thereon) and all other amounts owing under this
Agreement and the other Loan Documents 

 

80

 

(including all amounts of L/C Obligations, whether or not the
beneficiaries of the then outstanding Letters of Credit shall have presented
the documents required thereunder) to be due and payable forthwith, whereupon
the same shall immediately become due and payable.  With respect to all Letters of Credit with
respect to which presentment for honor shall not have occurred at the time of
an acceleration pursuant to this paragraph, the Borrower shall at such time
deposit in a cash collateral account opened by the Administrative Agent an
amount equal to the aggregate then undrawn and unexpired amount of such Letters
of Credit.  Amounts held in such cash
collateral account shall be applied by the Administrative Agent to the payment
of drafts drawn under such Letters of Credit, and the unused portion thereof
after all such Letters of Credit shall have expired or been fully drawn upon,
if any, shall be applied to repay other obligations of the Borrower hereunder
and under the other Loan Documents. 
After all such Letters of Credit shall have expired or been fully drawn
upon, all Reimbursement Obligations shall have been satisfied and all other
obligations of the Borrower hereunder and under the other Loan Documents shall
have been paid in full, the balance, if any, in such cash collateral account
shall be returned to the Borrower (or such other Person as may be lawfully
entitled thereto).  Except as expressly
provided above in this Section, presentment, demand, protest and all other
notices of any kind are hereby expressly waived by the Borrower.

 

SECTION 10.  THE AGENTS

 

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

 

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

 

10.3.                        Exculpatory
Provisions.  Neither any Agent nor
any of their respective officers, directors, employees, agents,
attorneys-in-fact or Affiliates shall be (i) liable for any action
lawfully taken or omitted to be taken by it or such Person under or in
connection with this Agreement or any other Loan Document (except to the extent
that any of the foregoing are found by a final and nonappealable decision of a
court of competent jurisdiction to have resulted from its or such Person’s own
gross negligence or willful misconduct) or (ii) responsible in any manner
to any of the Lenders for any recitals, statements, representations or
warranties made by any Loan Party or any officer thereof contained in this
Agreement or any other Loan Document 

 

81

 

or in any certificate, report, statement or other document referred to
or provided for in, or received by the Agents under or in connection with, this
Agreement or any other Loan Document or for the value, validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Loan
Document or for any failure of any Loan Party a party thereto to perform its
obligations hereunder or thereunder.  The
Agents shall not be under any obligation to any Lender to ascertain or to
inquire as to the observance or performance of any of the agreements contained
in, or conditions of, this Agreement or any other Loan Document, or to inspect
the properties, books or records of any Loan Party.

 

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

 

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

 

10.6.                        Non-Reliance
on Agents and Other Lenders.  Each
Lender expressly acknowledges that neither the Agents nor any of their
respective officers, directors, employees, agents, attorneys-in-fact or
Affiliates have made any representations or warranties to it and that no act by
any Agent hereafter taken, including any review of the affairs of a Loan Party
or any Affiliate of a Loan Party, shall be deemed to constitute any
representation or warranty by any 

 

82

 

Agent to any Lender.  Each Lender represents to the Agents that it
has, independently and without reliance upon any Agent or any other Lender, and
based on such documents and information as it has deemed appropriate, made its
own appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Loan Parties and
their Affiliates and made its own decision to make its Loans hereunder and
enter into this Agreement.  Each Lender
also represents that it will, independently and without reliance upon any Agent
or any other Lender, and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement
and the other Loan Documents, and to make such investigation as it deems
necessary to inform itself as to the business, operations, property, financial
and other condition and creditworthiness of the Loan Parties and their
Affiliates.  Except for notices, reports
and other documents expressly required to be furnished to the Lenders by the
Administrative Agent hereunder, the Administrative Agent shall not have any
duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, property, condition (financial
or otherwise), prospects or creditworthiness of any Loan Party or any Affiliate
of a Loan Party that may come into the possession of the Administrative Agent
or any of its officers, directors, employees, agents, attorneys-in-fact or
Affiliates.

 

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

 

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

 

83

 

may exercise the
same as though it were not an Agent, and the terms “Lender” and “Lenders” shall
include each Agent in its individual capacity.

 

10.9.                        Successor
Administrative Agent.  The
Administrative Agent may resign as Administrative Agent upon 10 Business Days’
notice to the Lenders and the Borrower. 
If the Administrative Agent shall resign as Administrative Agent under
this Agreement and the other Loan Documents, then the Required Lenders shall
appoint from among the Lenders a successor agent for the Lenders, which
successor agent shall (unless an Event of Default under Section 9(a) or
Section 9(f) with respect to the Borrower shall have occurred and be
continuing) be subject to approval by the Borrower (which approval shall not be
unreasonably withheld or delayed), whereupon such successor agent shall succeed
to the rights, powers and duties of the Administrative Agent, and the term “Administrative
Agent” shall mean such successor agent effective upon such appointment and
approval, and the former Administrative Agent’s rights, powers and duties as
Administrative Agent shall be terminated, without any other or further act or
deed on the part of such former Administrative Agent or any of the parties to
this Agreement or any holders of the Loans. 
If no successor agent has accepted appointment as Administrative Agent
by the date that is 10 Business Days following a retiring Administrative Agent’s
notice of resignation, the retiring Administrative Agent’s resignation shall
nevertheless thereupon become effective and the Lenders shall assume and
perform all of the duties of the Administrative Agent hereunder until such
time, if any, as the Required Lenders appoint a successor agent as provided for
above.  The Syndication Agent may, at any
time, by notice to the Lenders and the Administrative Agent, resign as
Syndication Agent hereunder, whereupon the duties, rights, obligations and responsibilities
of the Syndication Agent hereunder shall automatically be assumed by, and inure
to the benefit of, the Administrative Agent, without any further act by the
Syndication Agent, the Administrative Agent or any Lender.  After any retiring Administrative Agent’s
resignation as Administrative Agent, the provisions of this Section 10
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent under this Agreement and the other Loan
Documents.

 

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

 

10.11.                  The Lead
Arrangers.  Each Lead Arranger, in
its capacity as such, shall have no duties or responsibilities, and shall incur
no liability, under this Agreement and other Loan Documents.

 

10.12.                  Withholding
Tax.  To the extent required by any
applicable law, the Administrative Agent may withhold from any interest payment
to any Lender an amount equivalent to any applicable withholding tax.  If any Governmental Authority asserts a claim
that the Administrative Agent did not properly withhold tax from amounts paid
to or for the account of any Lender because the appropriate form was not
delivered or was not properly executed or because such Lender failed to notify
the Administrative Agent of a change in circumstance which rendered the
exemption from, or reduction of, withholding tax ineffective or for any other
reason, such Lender shall indemnify the Administrative Agent fully for all
amounts paid, directly or indirectly, by the Administrative Agent as tax or
otherwise, including any penalties or interest 

 

84

 

and together with
all expenses (including legal expenses, allocated internal costs and
out-of-pocket expenses) incurred.

 

SECTION 11.  MISCELLANEOUS

 

11.1.                        Amendments
and Waivers.  Neither
this Agreement, any other Loan Document, nor any terms hereof or thereof
may be amended, supplemented or modified except in accordance with the
provisions of this Section 11.1. 
The Required Lenders and each Loan Party party to the relevant Loan
Document may, or, with the written consent of the Required Lenders, the
Administrative Agent and each Loan Party party to the relevant Loan Document
may, from time to time, (a) enter into written amendments, supplements or
modifications hereto and to the other Loan Documents for the purpose of adding
any provisions to this Agreement or the other Loan Documents or changing in any
manner the rights of the Lenders or of the Loan Parties hereunder or thereunder
or (b) waive, on such terms and conditions as the Required Lenders or the
Administrative Agent, as the case may be, may specify in such instrument, any
of the requirements of this Agreement or the other Loan Documents or any
Default or Event of Default and its consequences; provided, however,
that no such waiver and no such amendment, supplement or modification shall (i) forgive
any principal amount or extend the final scheduled date of maturity of any
Loan, extend the scheduled date of any amortization payment in respect of any
Term Loan, reduce the stated rate of any interest or fee payable hereunder
(except (x) in connection with the waiver of applicability of any post-default
increase in interest rates, which waiver shall be effective with the consent of
the Required Lenders) and (y) that any amendment or modification of defined
terms used in the financial covenants in this Agreement shall not constitute a
reduction in the rate of interest or fees for purposes of this clause (i)) or
extend the scheduled date of any payment thereof, or increase the amount or
extend the expiration date of any Lender’s Revolving Commitment, in each case
without the written consent of each Lender directly affected thereby;  (ii) eliminate or reduce the voting
rights of any Lender under this Section 11.1 without the written consent
of such Lender; (iii) reduce any percentage specified in the definition of
Required Lenders, consent to the assignment or transfer by the Borrower of any
of its rights and obligations under this Agreement and the other Loan
Documents, release all or substantially all of the Collateral or release any
Subsidiary Guarantor from its obligations under the Guarantee and Collateral Agreement
(except as otherwise expressly permitted hereunder or under the other Loan
Documents), in each case without the written consent of all Lenders; (iv) amend,
modify or waive any condition precedent to any extension of credit under the
Revolving Facility set forth in Section 6.2 (including in connection with
any waiver of an existing Default or Event of Default) without the written
consent of the Majority Facility Lenders with respect to the Revolving
Facility; (v) amend, modify or waive any provision of Section 4.8
without the written consent of the Majority Facility Lenders in respect of the
Facility adversely affected thereby; (vi) reduce the percentage specified
in the definition of Majority Facility Lenders with respect to any Facility
without the written consent of all Lenders under such Facility; (vii) reduce
the amounts required to be applied to prepay the Loans pursuant to section 4.2,
or amend any of the defined terms herein in such a manner as to create a
similar result without the written consent of the Majority Facility Lenders of
each adversely affected facility; (viii) amend, modify or waive any
provision of Section 10 without the written consent of each Agent
adversely affected thereby; (ix) amend, modify or waive any provision of Section 3.3
or 3.4 without the written

 

85

 

consent of the
Swingline Lender; or (x) amend, modify or waive any provision of Sections 3.7
to 3.14 without the written consent of the Issuing Lender.  Any such waiver and any such amendment,
supplement or modification shall apply equally to each of the Lenders and shall
be binding upon the Loan Parties, the Lenders, the Agents and all future
holders of the Loans.  In the case of any
waiver, the Loan Parties, the Lenders and the Agents shall be restored to their
former position and rights hereunder and under the other Loan Documents, and
any Default or Event of Default waived shall be deemed to be cured and not
continuing; but no such waiver shall extend to any subsequent or other Default
or Event of Default, or impair any right consequent thereon.

 

Notwithstanding
the foregoing, this Agreement may be amended (or amended and restated) with the
written consent of the Required Lenders, the Administrative Agent and the
Borrower (a) to add one or more additional credit facilities to this
Agreement and to permit the extensions of credit from time to time outstanding
thereunder and the accrued interest and fees in respect thereof (collectively,
the “Additional Extensions of Credit”) to share ratably in the benefits
of this Agreement and the other Loan Documents with the Term Loans and
Revolving Extensions of Credit and the accrued interest and fees in respect
thereof and (b) to include appropriately the Lenders holding such credit
facilities in any determination of the Required Lenders and Majority Facility
Lenders; provided, that no such amendment shall permit the Additional
Extensions of Credit to share ratably with or with preference to the Term Loans
in the application of mandatory prepayments without the consent of the Majority
Facility Lenders under the Term Loan Facility or otherwise to share ratably
with or with preference to the Revolving Extensions of Credit without the
consent of the Majority Facility Lenders under the Revolving Facility.

 

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

 

11.2.                        Notices.  All notices, requests and demands to or upon
the respective parties hereto to be effective shall be in writing (including by
telecopy), and, unless otherwise expressly provided herein, shall be deemed to
have been duly given or made when delivered, or three Business Days after being
deposited in the mail, postage prepaid, or, in the case of telecopy notice,
when received, addressed as follows in the case of Holdings, the Borrower and
the 

 

86

 

Agents, and as set forth in an administrative questionnaire delivered
to the Administrative Agent in the case of the Lenders, or to such other
address as may be hereafter notified by the respective parties hereto:

 

Holdings:                                                                                                                                                                                            Protection
One, Inc.

1035 N. 3rd Street, Suite 101

Lawrence, KS  66044

Attention: Darius Nevin

Telecopy: (877) 299-0111

Telephone: (305) 594-0231

 

The Borrower:                                                                                                                                                                    Protection
One Alarm Monitoring, Inc.

1035 N. 3rd Street, Suite 101

Lawrence, KS  66044

Attention: Darius Nevin

Telecopy: (877) 299-0111

Telephone: (305) 594-0231

 

with a copy to:

 

                                                                                                                                                                                                                                                Kirkland &
Ellis LLP

Attention: Louis R. Hernandez

200 East Randolph Drive

Chicago, Illinois 60601-6636

Telecopy: (312)861-2200

Telephone: (312)-861-2029

 

The Administrative
Agent:                                                                                                 Bear
Stearns Corporate Lending Inc.

383 Madison Avenue

New York, NY  10179

Attention:  Stephen O’Keefe

Telecopy:  (212) 272-9743

Telephone:  (212) 272-9430

 

with a copy to:

 

                                                                                                                                                                                                                                                Latham &
Watkins LLP

Attention: Michele O. Penzer

885 Third Avenue, Suite 1000

New York, New York 10022

Telecopy: (212) 751-4864

Telephone: (212)-906-1200

 

87

 

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

 

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

 

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

 

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

 

11.5.                        Payment
of Expenses and Taxes.  The Borrower
agrees (a) to pay or reimburse each Agent for all its reasonable
out-of-pocket costs and expenses incurred in connection with the development,
preparation and execution of, and any amendment, supplement or modification to,
this Agreement and the other Loan Documents and any other documents prepared in
connection herewith or therewith, and the consummation and administration of
the transactions contemplated hereby and thereby, including the reasonable fees
and disbursements of one counsel to such Agents (together with such other
special or local counsel as such Agents may deem appropriate) and filing and
recording fees and expenses, with statements with respect to the foregoing to
be submitted to the Borrower prior to the Closing Date (in the case of amounts
to be paid on the Closing Date) and from time to time thereafter on a monthly
basis or such other periodic basis as such Agent shall deem appropriate, provided,
however, that the Borrower shall have received an invoice or similar writing
setting forth such charges in reasonable detail prior to the date such amounts
are due, (b) to pay or reimburse each Lender and Agent for all its
out-of-pocket costs and expenses incurred in connection with the enforcement or
preservation of any rights under this Agreement, the other Loan Documents and
any such other documents, including the fees and disbursements of counsel to
each Lender and of counsel to such Agent, (c) to pay, indemnify, and hold
each Lender and Agent harmless from, any and all recording and filing fees and
any and all liabilities with respect to, or resulting from any delay in paying,
stamp, excise and other taxes, if any, that may be payable or determined to be
payable in connection with the execution and delivery of, or consummation or
administration of any of the transactions contemplated by, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of,
this Agreement, the other Loan Documents and any such other

 

88

 

documents, and (d) to pay, indemnify, and hold each Lender and
Agent and their respective officers, directors, employees, Affiliates, agents
and controlling persons (each, an “Indemnitee”) harmless from and
against any and all other liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever with respect to the execution, delivery, enforcement,
performance and administration of this Agreement, the other Loan Documents and
any such other documents, including any of the foregoing relating to the use of
proceeds of the Loans or the violation of, noncompliance with or liability
under, any Environmental Law applicable to the operations of any Group Member
or any of the Properties or the unauthorized use by Persons of information or
other materials sent through electronic, telecommunications or other
information transmission systems that are intercepted by such Persons and the
reasonable fees and expenses of one legal counsel (in addition to such local
and special counsel as the Indemnitees shall deem appropriate) in connection
with claims, actions or proceedings by any Indemnitee against any Loan Party
under any Loan Document (all the foregoing in this clause (d), collectively,
the “Indemnified Liabilities”); provided, that the Borrower shall
have no obligation hereunder to any Indemnitee with respect to (i) Indemnified
Liabilities to the extent such Indemnified Liabilities are found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted
from the gross negligence or willful misconduct of such Indemnitee (or any of
its officers, directors, or employees acting within the scope of their duties),
(ii) claims brought solely by one Indemnitee against another, or (iii) special,
exemplary, consequential or punitive damages arising out of the transactions
contemplated hereunder; provided  further, that it is understood
the provisions of clause (d) as to each Lender are not intended to grant
additional rights to Lenders similar to those granted to the Agents under
clause (a) above, the reimbursement of which is intended to be controlled
solely by such clause.  Without limiting
the foregoing, and to the extent permitted by applicable law, the Borrower
agrees not to assert and to cause its Subsidiaries not to assert, and hereby
waives and agrees to cause its Subsidiaries to waive, all rights for
contribution or any other rights of recovery with respect to all claims,
demands, penalties, fines, liabilities, settlements, damages, costs and
expenses of whatever kind or nature, under or related to Environmental Laws,
that any of them might have by statute or otherwise against any
Indemnitee.  All amounts due under this Section 11.5
shall be payable not later than 10 days after written demand therefor.  Statements payable by the Borrower pursuant
to this Section 11.5 shall be submitted to Darius Nevin (Telephone No. (305) 599-0231) (Telecopy No. (877) 299-0111),
at the address of the Borrower set forth in Section 11.2, or to such other
Person or address as may be hereafter designated by the Borrower in a written
notice to the Administrative Agent.  The
agreements in this Section 11.5 shall survive repayment of the Loans and
all other amounts payable hereunder.

 

11.6.                        Successors
and Assigns; Participations and Assignments.  (a)  The provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby (including any Affiliate of
the Issuing Lender that issues any Letter of Credit), except that (i) the
Borrower may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by the Borrower without such consent shall be null and
void) and (ii) no Lender may assign or otherwise transfer its rights or
obligations hereunder except in accordance with this Section.

 

89

 

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

 

(A) the Borrower, provided that no consent
of the Borrower shall be required for an assignment (i) to a Lender, an
Affiliate of a Lender, an Approved Fund or, if an Event of Default has occurred
and is continuing, any other Person or (ii) of Term Loans; and

 

(B) the Administrative
Agent, provided that no consent of the Administrative Agent shall be
required for an assignment to an Assignee that is a Lender immediately prior to
giving effect to such assignment, except in the case of an assignment of a
Revolving Commitment to an Assignee that does not already have a Revolving
Commitment.

 

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

 

(A) except in the case of an assignment to a
Lender, an Affiliate of a Lender or an Approved Fund or an assignment of the
entire remaining amount of the assigning Lender’s Commitments or Loans under
any Facility, the amount of the Commitments or Loans of the assigning Lender
subject to each such assignment (determined as of the date the Assignment and
Assumption with respect to such assignment is delivered to the Administrative
Agent) shall not be less than $1,000,000 unless each of the Borrower and the
Administrative Agent otherwise consent, provided that (1) no such
consent of the Borrower shall be required if an Event of Default has occurred
and is continuing and (2) such amounts shall be aggregated in respect of
each Lender and its Affiliates or Approved Funds, if any;

 

(B) the Assignee, if it shall not be a Lender,
shall deliver to the Administrative Agent an administrative questionnaire and
all appropriate tax forms required under Section 4.10; and

 

(C) in the case of an assignment to a CLO, the
assigning Lender shall retain the sole right to approve any amendment,
modification or waiver of any provision of this Agreement and the other Loan
Documents, provided that the Assignment and Assumption between such
Lender and such CLO may provide that such Lender will not, without the consent
of such CLO, agree to any amendment, modification or waiver that (1) requires
the consent of each Lender directly affected thereby pursuant to the proviso to
the second sentence of Section 10.1 and (2) directly affects such
CLO.

 

(iii) Subject to acceptance and
recording thereof pursuant to paragraph (b)(iv) below,
from and after the effective date specified in each Assignment and Assumption
the Assignee thereunder shall be a party hereto and, to the extent of the
interest assigned 

 

90

 

by such Assignment and Assumption, have the rights and obligations of a
Lender under this Agreement, and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Assumption, be released
from its obligations under this Agreement (and, in the case of an Assignment
and Assumption covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto but shall
continue to be entitled to the benefits of Sections 4.9, 4.10, 4.11 and
11.5).  Any assignment or transfer by a
Lender of rights or obligations under this Agreement that does not comply with
this Section 10.6 shall be treated for purposes of this Agreement as a
sale by such Lender of a participation in such rights and obligations in
accordance with paragraph (c) of this Section.

 

(iv)  The Administrative Agent, acting for this
purpose as an agent of the Borrower, shall maintain at one of its offices a
register for the recordation of the names and addresses of the Lenders, and the
Commitments of, and principal amount of the Loans and L/C Obligations owing to,
each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent, the Issuing Lender and
the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary.  The Register shall be available for
inspection by the Borrower, the Issuing Lender and any Lender, at any
reasonable time and from time to time upon reasonable prior notice.

 

(v)  Upon its receipt of a duly completed
Assignment and Assumption executed by an assigning Lender and an Assignee, the
Assignee’s completed administrative questionnaire (unless the Assignee shall
already be a Lender hereunder), and any written consent to such assignment
required by paragraph (b) of this Section, the Administrative Agent shall
accept such Assignment and Assumption and record the information contained
therein in the Register.  No assignment
shall be effective for purposes of this Agreement unless it has been recorded
in the Register as provided in this paragraph.

 

(c)                                  (i)  Any Lender
may, without the consent of the Borrower or the Administrative Agent, sell
participations to one or more banks or other entities (a “Participant”)
in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Commitments and the Loans owing to
it); provided that (A) such Lender’s obligations under this
Agreement shall remain unchanged, (B) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (C) the Borrower, the Administrative Agent, the Issuing Lender and the
other Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement.  Any agreement pursuant to which a Lender
sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or
waiver of any provision of this Agreement; provided that such agreement
may provide that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver that (1) requires the
consent of each Lender directly affected thereby pursuant to the proviso to the
second sentence of 

 

91

 

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

 

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

 

(d)                                 Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal
Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest; provided that no such pledge or
assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

 

(e)                                  The
Borrower, upon receipt of written notice from the relevant Lender, agrees to
issue Notes to any Lender requiring Notes to facilitate transactions of the
type described in paragraph (d) above.

 

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

 

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

 

92

 

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

 

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

 

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

 

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

 

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

 

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

 

93

 

11.12.                  Submission
To Jurisdiction; Waivers.  Each of Holdings and the Borrower hereby
irrevocably and unconditionally:

 

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

 

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

 

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

 

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

 

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

 

11.13.                  Acknowledgments.  Each of Holdings and the Borrower hereby
acknowledges that:

 

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

 

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

 

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

 

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

 

94

 

Borrower having the effect of releasing any Collateral or guarantee
obligations (i) to the extent necessary to permit consummation of any
transaction not prohibited by any Loan Document or that has been consented to
in accordance with Section 11.1 or (ii) under the circumstances
described in paragraph (b) below.

 

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

 

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

 

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

 

11.17.                  Delivery
of Addenda.  Each initial Lender
shall become a party to this Agreement by delivering to the Administrative
Agent an Addendum duly executed by such Lender.

 

95

 

11.18.                  Subordination
of Intercompany Indebtedness

 

Each
of the Borrower and Holdings agrees that it will not become obligated or
otherwise liable for any intercompany Indebtedness that is owed to any
Subsidiary, unless such Subsidiary agrees that (a) such Indebtedness is
completely subordinated to the Obligations and subject in rights of payment to
the prior payment in full of the Obligations (other than contingent indemnity
obligations for which no claim has been made), (b) if an Event of Default
has occurred and is continuing, no payment on any such Indebtedness shall be
made until the payment in full of the Obligations, and (c) such Indebtedness
shall be evidenced by a Subordinated Intercompany Note, which note, if
evidencing obligations owed to a Loan Party, shall be pledged as Collateral to
the Administrative Agent.

 

11.19.                  USA
PATRIOT Act.  Each Lender hereby
notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act
(Title III of Publ. L. 107-56 (signed into law October 26, 2001)),
(the “Patriot Act”), and the Lenders’ policies and practices, it is
required to obtain, verify and record information that identifies the Borrower,
which information includes the name and address of the Borrower and other
information that will allow such Lender to identify the Borrower in accordance
with the Patriot Act.

 

96

 

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

 

	
   

  	
  PROTECTION ONE, INC.,

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/
  Richard Ginsburg

  	
   

  
	
   

  	
  Name:  Richard Ginsburg

  
	
   

  	
  Title:  President and CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PROTECTION ONE ALARM MONITORING, 

  INC.,

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/
  Richard Ginsburg

  	
   

  
	
   

  	
  Name:  Richard Ginsburg

  
	
   

  	
  Title:  President and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BEAR,
  STEARNS & CO. INC., as Joint Lead

  Arranger and Joint Bookrunner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ R.
  Bram Smith

  	
   

  
	
   

  	
  Name:  R. Bram Smith

  
	
   

  	
  Title:  VP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LEHMAN
  BROTHERS INC., as Joint Lead 

  Arranger and Joint Bookrunner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ V.
  Paul Arzouian

  	
   

  
	
   

  	
  Name:  V. Paul Arzouian

  
	
   

  	
  Title:  Senior VP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BEAR STEARNS
  CORPORATE LENDING INC., 

  as Administrative Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ R.
  Bram Smith

  	
   

  
	
   

  	
  Name:  R. Bram Smith

  
	
   

  	
  Title:  VP

  

 

 

	
   

  	
  LEHMAN
  COMMERCIAL PAPER INC., as 

  Syndication Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ V.
  Paul Arzouian

  	
   

  
	
   

  	
  Name:  V. Paul Arzouian

  
	
   

  	
  Title:  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HARRIS
  NESBITT FINANCING, INC., as Co-

  Documentation Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/
  Juliet Barnes

  	
   

  
	
   

  	
  Name:  Juliet Barnes

  
	
   

  	
  Title:  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LASALLE BANK
  NATIONAL ASSOCIATION, 

  as Co-Documentation Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ ILLEGIBLE

  	
   

  
	
   

  	
  Name:  ILLEGIBLE

  
	
   

  	
  Title:  VP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  U.S. BANK
  NATIONAL ASSOCIATION, as 

  Co-Documentation Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/
  Gail F. Scannell

  	
   

  
	
   

  	
  Name:  Gail F. Scannell

  
	
   

  	
  Title:  VP

  

 

 

Annex A

 

PRICING GRID FOR REVOLVING LOANS AND SWINGLINE
LOANS

 

	
  Pricing 

  Level

  	
   

  	
  Applicable Margin

  for Eurodollar Loans

  	
   

  	
  Applicable Margin for Base

  Rate Loans

  	
   

  
	
  I

  	
   

  	
  3.25

  	
  %

  	
  2.25

  	
  %

  
	
  II

  	
   

  	
  3.00

  	
  %

  	
  2.00

  	
  %

  
	
  III

  	
   

  	
  2.75

  	
  %

  	
  1.75

  	
  %

  
	
  IV

  	
   

  	
  2.50

  	
  %

  	
  1.50

  	
  %

  
	
  V

  	
   

  	
  2.25

  	
  %

  	
  1.25

  	
  %

  

 

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

 

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

 

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

 

“Pricing
Level II”  shall
exist on an Adjustment Date if the Consolidated Leverage Ratio for the relevant
period is less than 3.50 to 1.00 but greater than or equal to 3.00 to 1.00.

 

“Pricing
Level III”  shall
exist on an Adjustment Date if the Consolidated Leverage Ratio for the relevant
period is less than 3.00 to 1.00 but greater than or equal to 2.50 to 1.00.

 

“Pricing
Level IV”  shall
exist on an Adjustment Date if the Consolidated Leverage Ratio for the relevant
period is less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00.

 

 

“Pricing
Level V”  shall
exist on an Adjustment Date if the Consolidated Leverage Ratio for the relevant
period is less than 2.00 to 1.00.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]