Document:

ex4_3.htm

    Exhibit
      4.3

    ____________________________________________________________________________________________________________

     

    Southern
      Indiana Gas and Electric Company

    d/b/a
      Vectren Energy Delivery of Indiana, Inc.

    

    with

    

    Deutsche
      Bank Trust Company Americas,

     

                                                                     as
      Trustee

     

    _______________

     

    Supplemental
      Indenture

     

    Relating
      to the

     

    First
      Mortgage Bonds

     

    Series
      2007 due 2041

     

    

     

    Dated
      as of December 1, 2007

     

    
      ____________________________________________________________________________________________________________

    

    

    Prepared
      by and upon

    recordation
      return to:

     

    William
      M. Libit

    Chapman
      and Cutler LLP

    111
      West Monroe Street

    Chicago,
      Illinois  60603

    

    
      
              

                  2338615_01_06.doc      
      

                  2131613
•
            WML •
2/14/08      
    

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    Supplemental
      Indenture, dated as of December 1, 2007 (this “Supplemental
      Indenture”), between Southern Indiana Gas and Electric Company d/b/a
      Vectren Energy Delivery of Indiana, Inc., a corporation organized and existing
      under the laws of the State of Indiana (hereinafter called the
“Company”), party of the first part, and Deutsche Bank Trust Company
      Americas, a corporation organized and existing under the laws of the State
      of
      New York, formerly known as Bankers Trust Company, as Trustee under the
      Mortgage hereinafter referred to, party of the second part.

     

    Whereas,
      the Company heretofore executed and delivered to Deutsche Bank Trust Company
      Americas, formerly known as Bankers Trust Company, as trustee (hereinafter
      called the “Trustee”), a certain Indenture of Mortgage and Deed of
      Trust dated as of April 1, 1932, to secure an issue of bonds of the
      Company, issued and to be issued in series, from time to time, in the manner
      and
      subject to the conditions set forth in the said Indenture, and the said
      Indenture has been amended and supplemented by Supplemental Indentures dated
      as
      of August 31, 1936, October 1, 1937, March 22, 1939, July 1,
      1948, June 1, 1949, October 1, 1949, January 1, 1951,
      April 1, 1954, March 1, 1957, October 1, 1965, September 1,
      1966, August 1, 1968, May 1, 1970, August 1, 1971, April 1,
      1972, October 1, 1973, April 1, 1975, January 15, 1977,
      April 1, 1978, June 4, 1981, January 20, 1983, November 1,
      1983, March 1, 1984, June 1, 1984, November 1, 1984, July 1,
      1985, November 1, 1985, June 1, 1986, November 15, 1986,
      January 15, 1987, December 15, 1987, December 13, 1990,
      April 1, 1993, May 1, 1993, June 1, 1993, July 1, 1999,
      March 1, 2000, August 1, 2004, October 1, 2004, April 1,
      2005 and March 1, 2006, which Indenture as so amended and supplemented is
      hereinafter referred to as the “Mortgage” and as further supplemented
      by this Supplemental Indenture is hereinafter referred to as the
“Indenture”; and

     

    Whereas,
      Section 108 of the Mortgage provides that the Company and the Trustee may,
      from
      time to time, enter into such indentures supplemental to the Mortgage as shall
      be deemed by them necessary or desirable; and

     

    Whereas,
      the Company has entered into a Loan Agreement dated as of December 1, 2007
      (the “Loan Agreement” or “Agreement”), with Warrick County,
      Indiana (the “Issuer”), pursuant to which the Issuer issued $17,000,000
      aggregate principal amount of its Environmental Improvement Revenue Bonds,
      Series 2007 (Southern Indiana Gas and Electric Company Projects) (the
“Issuer Bonds”) pursuant to and in accordance with the terms of an
      Indenture of Trust dated as of December 1, 2007 (the “Issuer
      Indenture”), between the Issuer and The Bank of New York Trust Company,
      N.A., as trustee (the “Issuer Trustee”), in order to provide funds to
      loan to the Company for the purpose of (i) financing a portion of the costs
      of acquisition, construction, installation and equipping of certain solid waste
      disposal facilities (collectively, the “Projects”) described in
Exhibit A to the Agreement; (ii) paying a portion of the
      interest accruing on the Issuer Bonds during construction of the Projects and
      (iii) paying certain costs of issuance relating to the Issuer Bonds;
      and

     

    Whereas,
      the Company has determined that it would be in its best interests to cause
      a
      bond insurance policy with respect to the Issuer Bonds to be issued by the
      bond
      insurer named in the Issuer Indenture to insure the payment of principal and
      interest on the Issuer Bonds when due and in connection therewith secure the
      Company’s obligations relating to the Issuer Bonds under the Loan Agreement with
      the Company’s first mortgage bonds; and

     

    
      
        
        

      

      
        
           

        

        
          

        

      

      
        
        

      

    

    Whereas,
      the Company by appropriate company action in conformity with the terms of the
      Indenture has duly determined to create a new series of bonds which shall be
      issued under the Indenture in an aggregate principal amount of $17,000,000
      and
      be designated as “First Mortgage Bonds, Series 2007 due 2041” (hereinafter
      sometimes referred to as “Bonds of the Forty-fourth Series”), the bonds
      of which series are to bear interest at the rate from time to time borne by
      the
      Issuer Bonds and are subject to certain optional and mandatory redemption rights
      and obligations set forth herein; and

     

    Whereas,
      all things necessary to make the Bonds of the Forty-fourth Series, when
      authenticated by the Trustee and issued as in the Indenture provided, the valid,
      binding and legal obligations of the Company, entitled in all respects to the
      security of the Indenture, have been done and performed, and the creation,
      execution and delivery of this Supplemental Indenture has in all respects been
      duly authorized; and

     

     Whereas,
      the Company and the Trustee deem it advisable to enter into this Supplemental
      Indenture for the purposes above stated and for the purpose of describing the
      Bonds of the Forty-fourth Series and of providing the terms and conditions
      of
      redemption thereof;

     

    Now,
      Therefore, This Supplemental Indenture Witnesseth:  That Southern
      Indiana Gas and Electric Company d/b/a Vectren Energy Delivery of Indiana,
      Inc.,
      in consideration of the premises and of one dollar to it duly paid by the
      Trustee at or before the ensealing and delivery of these presents, the receipt
      whereof is hereby acknowledged, and of the purchase and acceptance of the bonds
      issued or to be issued hereunder by the holders or registered owners thereof,
      and in order to secure the payment of the principal, premium, if any, and
      interest of all bonds at any time issued and outstanding under the Indenture,
      according to their tenor and effect, and the performance of all of the
      provisions hereof and of said bonds, hath granted, bargained, sold, released,
      conveyed, assigned, transferred, pledged, set over and confirmed and by these
      presents doth grant, bargain, sell, release, convey, assign, transfer, pledge,
      set over and confirm unto Deutsche Bank Trust Company Americas, formerly known
      as Bankers Trust Company, as Trustee, and to its successor or successors in
      said
      trust, and to its and their assigns forever, all the properties, real, personal
      and mixed, tangible and intangible of the character described in the granting
      clauses of the aforesaid Indenture of Mortgage and Deed of Trust dated as of
      April 1, 1932 or in any indenture supplemental thereto acquired by the
      Company on or after the date of the execution and delivery of said Indenture
      of
      Mortgage and Deed of Trust (except any in said Indenture of Mortgage and Deed
      of
      Trust or in any indenture supplemental thereto expressly excepted) and does
      hereby confirm that the Company will not cause or consent to a partition, either
      voluntary or through legal proceedings, of property, whether herein described
      or
      heretofore or hereafter acquired, in which its ownership shall be as a tenant
      in
      common, except as permitted by and in conformity with the provisions of the
      Indenture and particularly of Article X thereof.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    Together
      with all and singular the tenements, hereditaments and appurtenances belonging
      or in any wise appertaining to the aforesaid property or any part thereof,
      with
      the reversion and reversions, remainder and remainders and (subject to the
      provisions of Article X of the Indenture), the tolls, rents, revenues,
      issues, earnings, income, product and profits thereof, and all the estate,
      right, title, interest and claim whatsoever, at law as well as in equity, which
      the Company now has or may hereafter acquire in and to the aforesaid property
      and franchises and every part and parcel thereof.

     

    To
      Have
      and to Hold all such properties, real, personal and mixed, mortgaged, pledged
      or
      conveyed by the Company as aforesaid, or intended so to be, unto the Trustee
      and
      its successors and assigns forever.

     

    In
      Trust,
      Nevertheless, upon the terms and trusts of the Indenture, for those who shall
      hold the bonds and coupons issued and to be issued thereunder, or any of them,
      without preference, priority or distinction as to lien of any of said bonds
      and
      coupons over any others thereof by reason of priority in the time of the issue
      or negotiation thereof, or otherwise howsoever, subject, however, to the
      provisions in reference to extended, transferred or pledged coupons and claims
      for interest set forth in the Indenture (and subject to any sinking funds that
      may be created for the benefit of any particular series).

     

    Provided,
      However, and these presents are upon the condition that, if the Company, its
      successors or assigns, shall pay or cause to be paid, the principal of, premium,
      if any, and interest on said bonds, at the times and in the manner stipulated
      therein and herein, and shall keep, perform and observe all and singular the
      covenants and promises in said bonds and in the Indenture expressed to be kept,
      performed and observed by or on the part of the Company, then this Supplemental
      Indenture and the estate and rights hereby granted shall cease, determine and
      be
      void, otherwise to be and remain in full force and effect.

     

    It
      Is
      Hereby Covenanted, Declared and Agreed, by the Company, that all such bonds
      and
      coupons are to be issued, authenticated and delivered, and that all property
      subject or to become subject hereto is to be held, subject to the further
      covenants, conditions, uses and trusts in the Indenture set forth, and the
      Company, for itself and its successors and assigns, does hereby covenant and
      agree to and with the Trustee and its successor or successors in such trust,
      for
      the benefit of those who shall hold said bonds and interest coupons, or any
      of
      them, as follows:

     

    Part I

     

    

     

    Form
      of Bonds of the Forty-fourth Series

     

    The
      form
      of the definitive registered bond without coupons of the Bonds of the
      Forty-fourth Series and the Trustee’s certificate of authentication to be borne
      by such bonds are to be substantially in the following forms,
      respectively:

     

    

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    “[form
      of
      fully registered Bond of the Forty-fourth Series]

    

    [form
      of
      face of bond]

     

    Southern
      Indiana Gas and Electric Company

     

    

     

    First
      Mortgage Bond, Series 2007 Due 2041

     

    No. ______   
                                                                            $17,000,000

     

    Southern
      Indiana Gas and Electric Company d/b/a Vectren Energy Delivery of Indiana,
      Inc.,
      a corporation of the State of Indiana (hereinafter called the
“Company”), for value received, hereby promises to pay to
      ______________________________________ or registered assigns Seventeen Million
      dollars, on January 1, 2041 at the office or agency of the Company in the
      Borough of Manhattan, The City of New York, N.Y., in any coin or currency
      of the United States of America which at the time of payment is legal tender
      for
      the payment of public and private debts, and to pay to the registered owner
      hereof interest thereon at the same rate or rates of interest as the
      Environmental Improvement Revenue Bonds, Series 2007 (Southern Indiana Gas
      and
      Electric Company Projects) (the “Issuer Bonds”) due January 1,
      2041 and issued by the Warrick County, Indiana (the “Issuer”), under
      the Indenture of Trust dated as of December 1, 2007 (the “Issuer
      Indenture”), between the Issuer and The Bank of New York Trust
      Company, N.A., as trustee (the “Issuer Trustee”) (as determined in
      accordance with the Issuer Indenture); provided, however, that in no
      event shall the rate of interest borne by the bonds of this series exceed 15%
      per annum.  Such interest, in like coin or currency, payable at said
      office or agency on the same dates as interest on the Issuer Bonds, or if this
      bond shall be duly called for redemption, until the redemption date, or if
      the
      Company shall default in the payment of the principal hereof, until the
      Company’s obligation to pay principal shall be discharged as provided in the
      hereinafter defined Mortgage, is paid until the principal sum is paid in full
      discharge under the Mortgage.

     

    The
      Company has agreed to pay the principal of, premium, if any, and interest on
      the
      Issuer Bonds pursuant to a Loan Agreement dated as December 1, 2007 (the
“Agreement”) between the Company and the Issuer.  Pursuant to
      the Granting Clauses of the Issuer Indenture, this bond is issued to the Issuer
      Trustee to secure any and all obligations of the Company under the Agreement
      with respect to payment of the Issuer Bonds.  Payment of principal of,
      premium, if any, or interest on, the Issuer Bonds shall constitute payments
      on
      this bond as further provided herein and in the Issuer Indenture, pursuant
      to
      which this bond has been authorized.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    Upon
      any
      payment of the principal of, premium, if any, and interest on, all or any
      portion of the Issuer Bonds, whether at maturity or otherwise or upon provision
      for the payment thereof having been made in accordance with Section 8.01 of
      the Issuer Indenture, a principal amount of this bond equal to the principal
      amount of such Issuer Bonds shall, to the extent of such payment of principal,
      premium, if any, and interest, be deemed paid and the obligation of the Company
      thereunder to make such payment shall be discharged to such extent and, in
      the
      case of the payment of principal, such bonds shall be surrendered to the Trustee
      for cancellation as provided in Section 8.02 of the Issuer
      Indenture.  The Trustee (as hereinafter defined) may at any time and
      all times conclusively assume that the obligation of the Company to make
      payments under the Agreement with respect to the principal of, premium, if
      any,
      and interest on, the Issuer Bonds, so far as such payments at the time have
      become due, has been fully satisfied and discharged pursuant to the foregoing
      sentence unless and until the Trustee shall have received a written notice
      from
      the Issuer Trustee signed by one of its officers stating (i) that timely
      payment of principal of, or interest on, the Issuer Bonds has not been made,
      (ii) that the Company is in arrears as to the payments required to be made
      by it to the Issuer Trustee pursuant to the Agreement, and (iii) the amount
      of the arrearage.

     

    The
      provisions of this bond are continued on the reverse hereof and such continued
      provisions shall for all purposes have the same effect as though fully set
      forth
      at this place.

     

    This
      bond
      shall not become obligatory until Deutsche Bank Trust Company Americas, the
      Trustee under the Mortgage, or its successor thereunder, shall have signed
      the
      form of certificate endorsed hereon.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    In
      Witness Whereof, Southern Indiana Gas and Electric Company d/b/a Vectren Energy
      Delivery of Indiana, Inc. has caused this bond to be signed in its name by
      its
      President or a Vice President, by his signature or a facsimile thereof, and
      a
      facsimile of its corporate seal to be imprinted hereon, attested by its
      Secretary or an Assistant Secretary, by his signature or a facsimile
      thereof.

     

    Dated:  ______________

    

    
      	
               

            	
              Southern
                Indiana Gas and 

              Electric
                Company d/b/a 

              Vectren
                Energy Delivery of Indiana, Inc.

            

    

     

    
      	
               

            	
              By:
                __________________________________________

                    
                __________________________________________

            

    

    
      	
               

            	 

    

    Attest:

     

                            ___________________________________

            Secretary

    

    [Form
      of
      Trustee’s Certificate]

     

    This
      bond
      is one of the bonds of the series designated therein, described in the
      within-mentioned Mortgage.

    

    
      	
               

            	
              Deutsche
                Bank Trust 

                
                Company Americas, by 

                
                Deutsche Bank National Trust 

                
                Company, as Trustee

            

    

    

     

    
      	
               

            	
              By: 
                _________________________________

            

    

                 
      Authorized Officer

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    [form
      of
      reverse of bond]

     

    Southern
      Indiana Gas and Electric Company

     

    

     

    First
      Mortgage Bond, Series 2007 Due 2041

     

    This
      bond
      is one of an issue of First Mortgage Bonds of the Company, issuable in series,
      and is one of the series designated in the title hereof, all issued and to
      be
      issued under and equally secured (except as to any sinking fund established
      in
      accordance with the provisions of the Mortgage hereinafter mentioned for the
      bonds of any particular series) by an Indenture of Mortgage and Deed of Trust,
      dated as of April 1, 1932, executed by the Company to Deutsche Bank Trust
      Company Americas, formerly known as Bankers Trust Company, as Trustee (the
      “Trustee”), as amended and supplemented by indentures supplemental
      thereto (herein referred to as the “Mortgage”), reference is made for a
      description of the property mortgaged and pledged, the nature and extent of
      the
      security, the rights of the holders of the bonds in respect thereof and the
      terms and conditions upon which the bonds are secured.

     

    The
      bonds
      of this series are issued and to be issued in order to evidence and secure
      a
      loan made by the Issuer to the Company pursuant to the Agreement.  In
      order to provide moneys to fund such loan, the Issuer has issued the Issuer
      Bonds under and pursuant to the Issuer Indenture.  Payments made by
      the Company of principal, premium, if any, and interest on the bonds of this
      series are intended to be sufficient to permit payments of principal, premium,
      if any, and interest to be made on the Issuer Bonds.  Upon certain
      terms and conditions, moneys held under and pursuant to the Issuer Indenture,
      including moneys so held from the proceeds of the sale of the Issuer Bonds
      or
      earnings on the investment of such proceeds, or redemption of the Issuer Bonds
      shall be credited to or used for the payment of the bonds of this series and
      to
      the extent so credited or used shall satisfy a like amount otherwise due
      hereunder.

     

    The
      bonds
      of this series are subject to optional and mandatory redemption, in whole or
      in
      part, as the case may be, on each date that Issuer Bonds are to be
      redeemed.  The principal amount of the bonds of this series to be
      redeemed on any such date shall be equal to the principal amount of Issuer
      Bonds
      called for redemption on that date.  All redemptions of bonds of this
      series shall be at the redemption prices that correspond to the redemption
      prices for the Issuer Bonds.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    If
      and
      whenever the Trustee or the Company is notified that an event of default has
      occurred and is continuing under Section 9.01(e) of the Issuer Indenture,
      and provided that the principal of all Issuer Bonds then outstanding
      and the interest thereon shall have been declared immediately due and payable,
      then not later than two business days following the occurrence of the foregoing
      events, the Company shall, upon not less than 30 days’ and not more than 45
      days’ prior written notice given in the manner provided in the Mortgage, call
      for redemption on a redemption date selected by it not later than 45 days
      following the date of such notice, all of the bonds of this series then
      outstanding, and shall on such redemption date redeem the same at a price equal
      to 100% of the principal amount thereof together with accrued interest thereon
      to the redemption date, except that such requirement or redemption shall be
      deemed to be waived if, prior to the date fixed for such redemption of the
      bonds
      of this series, such event of default is waived or cured.

     

    In
      case a
      completed default, as defined in the Mortgage, shall occur, the principal of
      this bond and all other bonds of the Company at any such time outstanding under
      the Mortgage may be declared or may become due and payable, upon the conditions
      and in the manner and with the effect provided in the Mortgage.  The
      Mortgage provides that such declaration may in certain events be waived by
      the
      holders of a majority in principal amount of the bonds entitled to vote then
      outstanding.

     

    This
      bond, subject to the limitations with regard thereto contained in the Issuer
      Indenture, is transferable as prescribed in the Mortgage by the registered
      owner
      hereof in person, or by his duly authorized attorney, at the office or agency
      of
      the Company in the Borough of Manhattan, The City of New York, N.Y., upon
      surrender and cancellation of this bond, and thereupon, a new fully registered
      bond of the same series for a like principal amount will be issued to the
      transferee in exchange thereof as provided in the Mortgage, and upon payment,
      if
      the Company shall require it, of the charges therein prescribed.  The
      Company and the Trustee may deem and treat the person in whose name this bond
      is
      registered as the absolute owner for the purpose of receiving payment of or
      on
      account of the principal and interest due hereon and for all other
      purposes.

     

    As
      provided in Section 8.02 of the Issuer Indenture, from and after the
      Release Date (as defined in the Issuer Indenture), the obligations of the
      Company with respect to this bond shall be deemed to be satisfied and
      discharged, this bond shall cease to secure in any manner the 

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    Company’s
      obligations under the Agreement with respect to the payment of any Issuer Bonds
      outstanding under the Issuer Indenture, and, pursuant to Section 8.02 of
      the Issuer Indenture, the Issuer Trustee shall forthwith deliver this bond
      to
      the Trustee for cancellation.

     

    The
      bonds
      of this series are issuable as registered bonds without coupons in denominations
      of $1,000 and authorized multiples thereof.  In the manner and upon
      payment of the charges prescribed in the Mortgage, registered bonds without
      coupons of this series may be exchanged for a like aggregate principal amount
      of
      fully registered bonds without coupons of other authorized denominations of
      the
      same series, upon presentation and surrender thereof, for cancellation, to
      the
      Trustee at its principal corporate trust office in the Borough of Manhattan,
      The
      City of New York, N.Y.

     

    No
      recourse shall be had for the payment of the principal of or interest on this
      bond against any incorporator or any past, present or future subscriber to
      the
      capital stock, stockholder, officer or director of the Company or of any
      predecessor or successor corporation, either directly or through the Company
      or
      any predecessor or successor corporation, under any rule of law, statute or
      constitution or by the enforcement of any assessment or otherwise, all such
      liability of incorporators, subscribers, stockholders, officers and directors
      being released by the holder or owner hereof by the acceptance of this bond
      and
      being likewise waived and released by the terms of the Mortgage.

     

    [end
      of
      form of bond]”

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    Part II

    

    Description
      of Bonds of the Forty-fourth Series

     

    Bonds
      of
      the Forty-fourth Series shall mature, subject to prior redemption, on the date
      set forth in the form of bond relating hereto hereinbefore set forth, shall
      bear
      interest at the rate from time to time borne by the Issuer Bonds; provided,
      however, that in no event shall the rate of interest borne by the Bonds of
      the Forty-fourth Series exceed 15% per annum.  Such interest, payable
      on the same dates as interest on the Issuer Bonds, and all bonds of said series
      shall be designated as hereinbefore in the fifth Whereas clause set
      forth.  Principal of, premium, if any, and interest on said bonds
      shall be payable, to the extent specified in the form of bond hereinabove set
      forth, in any coin or currency of the United States of America which at the
      time
      of payment is legal tender for the payment of public and private debts, at
      the
      office or agency of the Company in the Borough of Manhattan, The City of
      New York, N.Y.  Definitive bonds of said series may be issued,
      originally or otherwise, only as registered bonds without coupons; and they
      and
      the Trustee’s certificate of authentication shall be substantially in the forms
      hereinbefore recited, respectively.  Definitive registered Bonds of
      the Forty-fourth Series may be issued in the denomination of $1,000 and in
      such
      other denominations (in multiples of $1,000) as the Board of Directors of the
      Company shall approve, and execution and delivery to the Trustee for
      authentication shall be conclusive evidence of such approval.  In the
      manner and upon payment of the charges prescribed in the Indenture, registered
      bonds without coupons of said series may be exchanged for a like aggregate
      principal amount of fully registered bonds without coupons of other authorized
      denominations of the same series, upon presentation and surrender thereof for
      cancellation to the Trustee at its principal corporate trust office in the
      Borough of Manhattan, The City of New York, N.Y.  However,
      notwithstanding the provisions of Section 12 of the Indenture, no charge
      shall be made upon any transfer or exchange of bonds of said series other than
      for any tax or taxes or other governmental charge required to be paid by the
      Company.  The form of the temporary bonds of said series shall be in
      substantially the form of the form of registered bond hereinbefore recited
      with
      such appropriate changes therein as are required on account of the temporary
      nature thereof.  Said temporary bonds of said series shall be in
      registered form without coupons, registrable as to principal, and shall be
      exchangeable for definitive bonds of said series when prepared.

     

    The
      person in whose name any registered bond without coupons of the Forty-fourth
      Series is registered at the close of business on any record date (as hereinbelow
      defined) with respect to any interest payment date shall be entitled to receive
      the interest payable on such interest payment date notwithstanding the
      cancellation of such registered bond upon any transfer or exchange thereof
      subsequent to the record date and prior to such interest payment date, except
      if
      and to the extent the Company shall default in the payment of the interest
      due
      on such interest payment date, in which case such defaulted interest shall
      be
      paid to the person in whose name such bond is registered either at the close
      of
      business on the day preceding the date of payment of such defaulted interest
      or
      on a subsequent record date for such payment if one shall have been established
      as hereinafter provided.  A subsequent record date may be established
      by or on behalf of the Company by notice mailed to the holders of bonds not
      less
      than ten days preceding such record date, which record date shall be not more
      than 30 days prior to the subsequent interest payment date.  The term
“record date” as used in this Section with respect to any regular interest
      payment date shall mean the Interest Payment Date (as defined in the Issuer
      Indenture).

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    Except
      as
      provided in this Section, every registered bond without coupons of the
      Forty-fourth Series shall be dated and shall bear interest as provided in
      Section 10 of the Indenture; provided, however, that so long as
      there is no existing default in the payment of interest on the bonds, the holder
      of any bond authenticated by the Trustee between the record date for any
      interest payment date and such interest payment date shall not be entitled
      to
      the payment of the interest due on such interest payment date and shall have
      no
      claim against the Company with respect thereto; and provided, further,
      that, if and to the extent the Company shall default in the payment of the
      interest due on such interest payment date, then any such bond shall bear
      interest from the interest payment date to which interest has been
      paid.

     

    Upon
      any
      payment of the principal of, premium, if any, and interest on, all or any
      portion of the Issuer Bonds, whether at maturity or otherwise or upon provision
      for the payment thereof having been made in accordance with Section 8.01 of
      the Issuer Indenture, the Bonds of the Forty-fourth Series in a principal amount
      equal to the principal amount of such Issuer Bonds shall, to the extent of
      such
      payment of principal, premium, if any, and interest, be deemed paid and the
      obligation of the Company thereunder to make such payment shall be discharged
      to
      such extent and, in the case of the payment of principal, such Bonds of the
      Forty-fourth Series shall be surrendered to the Trustee for cancellation as
      provided in and subject to the terms of Section 8.02 of the Issuer
      Indenture.  The Trustee may at any time and all times conclusively
      assume that the obligation of the Company under the Agreement to make payments
      with respect to the principal of, premium, if any, and interest on the Issuer
      Bonds, so far as such payments at the time have become due, has been fully
      satisfied and discharged pursuant to the foregoing sentence unless and until
      the
      Trustee shall have received a written notice from the Issuer Trustee signed
      by
      one of its officers stating (i) that timely payment of principal of,
      premium, if any, or interest on, the Issuer Bonds has not been made,
      (ii) that the Company is in arrears as to the payments required to be made
      by it to the Issuer Trustee pursuant to the Agreement, and (iii) the amount
      of the arrearage.

     

    Part III

     

    Redemption
      Provisions

     

    Section 1.     
      The Bonds of the Forty-fourth Series shall be subject to redemption by
      the
      Company prior to maturity in the events and in the manner and at the redemption
      prices set forth in the form of Bond contained in Part I hereof and not
      otherwise.

     

    Section 2.    
      In the manner provided by the provisions of Article IX of the
      Indenture, notice of redemption shall be mailed not less than 30 days and not
      more than 45 days prior to the date of redemption, to the registered owner
      of the Bonds of the Forty-fourth Series, at the address thereof as the same
      shall appear on the transfer register of the Company; provided,
      however, that the owners of all of the Bonds of the Forty-fourth Series may
      agree in writing with the Company to a shorter notice period with respect to
      their respective series, and such agreement, if filed with the Trustee, shall
      be
      binding on the Company.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    Part IV

     

    

     

    Miscellaneous

     

    Section 1.    
      The Company covenants that the provisions of Section 36A of the
      Indenture and of Section 1.02 of the Supplemental Indenture dated as of
      July 1, 1948, which are to remain in effect so long as any bonds of the
      series referred to in said Section shall be outstanding under the Indenture,
      shall remain in full force and effect so long as any Bonds of the Forty-fourth
      Series shall be outstanding under the Indenture.

     

    Section 2.    
      Except as herein otherwise expressly provided, no duties, responsibilities
      or liabilities are assumed, or shall be construed to be assumed, by the Trustee
      by reason of this Supplemental Indenture, other than as set forth in the
      Mortgage.  The Trustee shall not be responsible for the recitals
      herein or in the bonds (except the Trustee’s certificate of authentication), all
      of which are made by the Company solely.

     

    Section 3.    
      As supplemented and amended by this Supplemental Indenture, the Mortgage
      is
      in all respects ratified and confirmed, and the Mortgage and this Supplemental
      Indenture shall be read, taken and construed as one and the same
      instrument.

     

    Section 4.    
      This Supplemental Indenture may be executed in several counterparts and
      all
      such counterparts executed and delivered, each as an original, shall constitute
      but one and the same instrument.

    
      
              

                       

        

        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    In
      Witness Whereof, Southern Indiana Gas and Electric Company d/b/a Vectren Energy
      Delivery of Indiana, Inc., party of the first part hereto, and Deutsche Bank
      Trust Company Americas, party of the second part hereto, have caused these
      presents to be executed in their respective names by their respective Presidents
      or one of their Vice Presidents or Assistant Vice Presidents and their
      respective seals to be hereunto affixed and attested by their respective
      Secretaries or one of their Assistant Secretaries or Assistant Vice Presidents,
      all as of the day and year first above written.

     

    (Seal)

                                                            Southern
      Indiana Gas and Electric

                                                            Company
      d/b/a Vectren Energy Delivery

                                                            of
      Indiana, Inc.

    

    
      	
               

            	
                                          
                By ___________________________

            

    

                                                        Robert
      L.
      Goocher

                                                        Vice
      President and
      Treasurer

    Attest:

    

    

    __________________________________

                         Robert
      E.
      Heidorn

       
        Vice President, General Counsel and 

                        Assistant
      Secretary

    

    

    (Seal)

    
      	
               

            	
                                         
                Deutsche Bank Trust Company Americas, 

                                      by
                Deutsche Bank National Trust
                Company

            

    

    

    

    
      	
               

            	
                                                                                
                          By
                _________________________________

            

    

                                                                                                       
                     
David Contino

                                                                           
               Assistant Vice
      President

     

     

    
      	 	
                              
                 
                By_____________________________________

                                               
                         Irina
                Golovashchuk

                                           
                         Assistant Vice
                President

            

    

    Attest:

    

    

    
      	
              ____________________________________

                        Rodney
                Gaughan

                         Vice
                President

            	 

    

    

    
      
                   

        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    State
      of
      Indiana         
                )

    )
      SS

    County
      of
      Vanderburgh   
 )

    

     

    On
      this
      ___ day of _____________, 2007, before me, the undersigned, a notary public
      in
      and for the county and state aforesaid, personally came Robert L. Goocher,
      to me
      known, who being by me duly sworn, did depose and say that he resides at 6755
      River Ridge Drive, Newburgh, Indiana 47630; that he is Vice President and
      Treasurer of Southern Indiana Gas and Electric Company, one of the corporations
      described in and which executed the foregoing instrument; that he knows the
      seal
      of the said corporation; that the seal affixed to said instrument is such
      corporate seal; that it was so affixed by order of the Board of Directors of
      said corporation and that he signed his name thereto by like order; and the
      said
      Robert L. Goocher acknowledged the execution of the foregoing instrument on
      behalf of the said corporation as the voluntary act and deed of the said
      corporation for the uses and purposes therein set forth.

     

    In
      Witness Whereof, I have hereunto set my hand and seal the day and year first
      above written.

    

    

    

    
      	
               

            	
                                                                                                 
                _______________________________________

            

    

    
      	
               

            	
                                                           
                                            
                Notary Public

            

    

    (Seal)

    

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

    State
      of
      New Jersey           
       )

    )
      SS

    County
      of
      Union           
            )

    
 

     

    On
      this
      ___ day of __________, 2007, before me, the undersigned, a notary public in
      and
      for the county and state aforesaid, personally came David Contino, to me known,
      who being by me duly sworn, did depose and say that he resides at
      __________________________________ and personally came Irina Golovashchuk,
      to me
      known, who being by me duly sworn, did depose and say that she resides at
      __________________________________; that each is an Assistant Vice President
      of
      Deutsche Bank Trust Company Americas, one of the corporations described in
      and
      which executed the foregoing instrument; that each knows the seal of the said
      corporation; that the seal affixed to said instrument is such corporate seal;
      that it was so affixed by order of the Board of Directors of said corporation
      and that each signed his or her name thereto by like order; and the said David
      Contino and the said Irina Golovashchuk acknowledged the execution of the
      foregoing instrument on behalf of the said corporation as the voluntary act
      and
      deed of the said corporation for the uses and purposes therein set
      forth.

     

    In
      Witness Whereof, I have hereunto set my hand and seal the day and year first
      above written.

    

    

    

    
      	
               

            	
                                                                                                
                _______________________________________

            

    

    
      	
               

            	
                                                                                               
                Notary Public

            

    

    (Seal)

    

    

    My
      Commission Expires:  __________ ___, 20__

    

    My
      County
      of Residence is:_________________________

                                                     
      _________________________Exhibit 10.1

 

CREDIT AGREEMENT

 

DATED AS OF FEBRUARY 6, 2008

 

AMONG

 

FESTIVAL FUN PARKS, LLC,

 

MERRILL LYNCH BUSINESS FINANCIAL SERVICES
INC.,

as Administrative Agent, as a Lender and

as Sole Bookrunner and Joint Lead Arranger

 

THE GOVERNOR AND COMPANY OF THE BANK OF
IRELAND,

as a Lender and

as Joint Lead Arranger and

Co-Syndication Agent,

 

NATIXIS,

as a Lender and as Co-Syndication Agent

 

GENERAL ELECTRIC CAPITAL CORPORATION,

as a Lender and as Co-Documentation Agent,

 

CHURCHILL FINANCIAL LLC,

as Co-Documentation Agent

 

AND

 

THE ADDITIONAL LENDERS

FROM TIME TO TIME PARTY HERETO

 

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  1. DEFINITIONS

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.1

  	
   

  	
  CERTAIN DEFINED TERMS

  	
   

  	
  2

  
	
  SECTION 1.2

  	
   

  	
  ACCOUNTING TERMS AND
  DETERMINATIONS

  	
   

  	
  22

  
	
  SECTION 1.3

  	
   

  	
  OTHER DEFINITIONAL
  PROVISIONS AND REFERENCES

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  2. LOANS AND LETTERS OF CREDIT

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.1

  	
   

  	
  TERM LOAN B

  	
   

  	
  23

  
	
  SECTION 2.2

  	
   

  	
  SCHEDULED REPAYMENTS

  	
   

  	
  23

  
	
  SECTION 2.3

  	
   

  	
  MANDATORY PREPAYMENTS

  	
   

  	
  24

  
	
  SECTION 2.4

  	
   

  	
  OPTIONAL PREPAYMENTS OF
  TERM LOAN B

  	
   

  	
  26

  
	
  SECTION 2.5

  	
   

  	
  ALL PREPAYMENTS

  	
   

  	
  26

  
	
  SECTION 2.6

  	
   

  	
  REVOLVING LOANS AND
  BORROWINGS

  	
   

  	
  26

  
	
  SECTION 2.7

  	
   

  	
  [RESERVED]

  	
   

  	
  27

  
	
  SECTION 2.8

  	
   

  	
  ADVANCING REVOLVING LOANS

  	
   

  	
  27

  
	
  SECTION 2.9

  	
   

  	
  MANDATORY REVOLVING LOAN
  REPAYMENTS AND PREPAYMENTS

  	
   

  	
  28

  
	
  SECTION 2.10

  	
   

  	
  OPTIONAL PREPAYMENTS OF
  REVOLVING LOANS

  	
   

  	
  28

  
	
  SECTION 2.11

  	
   

  	
  SWINGLINE LOANS

  	
   

  	
  28

  
	
  SECTION 2.12

  	
   

  	
  INTEREST, INTEREST
  CALCULATIONS AND CERTAIN FEES

  	
   

  	
  30

  
	
  SECTION 2.13

  	
   

  	
  NOTES

  	
   

  	
  33

  
	
  SECTION 2.14

  	
   

  	
  LETTERS OF CREDIT AND
  LETTER OF CREDIT FEES

  	
   

  	
  33

  
	
  SECTION 2.15

  	
   

  	
  GENERAL PROVISIONS
  REGARDING PAYMENT

  	
   

  	
  36

  
	
  SECTION 2.16

  	
   

  	
  LOAN ACCOUNT

  	
   

  	
  36

  
	
  SECTION 2.17

  	
   

  	
  MAXIMUM INTEREST

  	
   

  	
  37

  
	
  SECTION 2.18

  	
   

  	
  TAXES

  	
   

  	
  37

  
	
  SECTION 2.19

  	
   

  	
  CAPITAL ADEQUACY

  	
   

  	
  39

  
	
  SECTION 2.20

  	
   

  	
  MITIGATION OBLIGATIONS

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  3. REPRESENTATIONS AND WARRANTIES 

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.1

  	
   

  	
  EXISTENCE AND POWER

  	
   

  	
  40

  
	
  SECTION 3.2

  	
   

  	
  ORGANIZATION AND
  GOVERNMENTAL AUTHORIZATION; NO CONTRAVENTION

  	
   

  	
  40

  
	
  SECTION 3.3

  	
   

  	
  BINDING EFFECT

  	
   

  	
  41

  
	
  SECTION 3.4

  	
   

  	
  CAPITALIZATION

  	
   

  	
  41

  
	
  SECTION 3.5

  	
   

  	
  FINANCIAL INFORMATION

  	
   

  	
  41

  
	
  SECTION 3.6

  	
   

  	
  LITIGATION

  	
   

  	
  42

  
	
  SECTION 3.7

  	
   

  	
  OWNERSHIP OF PROPERTY

  	
   

  	
  42

  
	
  SECTION 3.8

  	
   

  	
  NO DEFAULT

  	
   

  	
  42

  
	
  SECTION 3.9

  	
   

  	
  LABOR MATTERS

  	
   

  	
  42

  
	
  SECTION 3.10

  	
   

  	
  REGULATED ENTITIES

  	
   

  	
  43

  
	
  SECTION 3.11

  	
   

  	
  MARGIN REGULATIONS

  	
   

  	
  43

  
	
  SECTION 3.12

  	
   

  	
  COMPLIANCE WITH LAWS; ANTI-TERRORISM
  LAWS

  	
   

  	
  43

  
	
  SECTION 3.13

  	
   

  	
  TAXES

  	
   

  	
  43

  

 

 

	
  SECTION 3.14

  	
   

  	
  COMPLIANCE WITH ERISA

  	
   

  	
  44

  
	
  SECTION 3.15

  	
   

  	
  BROKERS

  	
   

  	
  44

  
	
  SECTION 3.16

  	
   

  	
  RELATED TRANSACTIONS

  	
   

  	
  45

  
	
  SECTION 3.17

  	
   

  	
  MATERIAL CONTRACTS

  	
   

  	
  45

  
	
  SECTION 3.18

  	
   

  	
  ENVIRONMENTAL COMPLIANCE

  	
   

  	
  45

  
	
  SECTION 3.19

  	
   

  	
  INTELLECTUAL PROPERTY

  	
   

  	
  46

  
	
  SECTION 3.20

  	
   

  	
  REAL PROPERTY INTERESTS

  	
   

  	
  47

  
	
  SECTION 3.21

  	
   

  	
  SOLVENCY

  	
   

  	
  47

  
	
  SECTION 3.22

  	
   

  	
  FULL DISCLOSURE

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  4. AFFIRMATIVE COVENANTS  47

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.1

  	
   

  	
  FINANCIAL STATEMENTS AND
  OTHER REPORTS

  	
   

  	
  47

  
	
  SECTION 4.2

  	
   

  	
  PAYMENT AND PERFORMANCE OF
  OBLIGATIONS

  	
   

  	
  51

  
	
  SECTION 4.3

  	
   

  	
  MAINTENANCE OF EXISTENCE

  	
   

  	
  51

  
	
  SECTION 4.4

  	
   

  	
  MAINTENANCE OF PROPERTY;
  INSURANCE

  	
   

  	
  51

  
	
  SECTION 4.5

  	
   

  	
  COMPLIANCE WITH LAWS

  	
   

  	
  53

  
	
  SECTION 4.6

  	
   

  	
  INSPECTION OF PROPERTY,
  BOOKS AND RECORDS

  	
   

  	
  53

  
	
  SECTION 4.7

  	
   

  	
  USE OF PROCEEDS

  	
   

  	
  53

  
	
  SECTION 4.8

  	
   

  	
  LENDERS’ MEETINGS

  	
   

  	
  53

  
	
  SECTION 4.9

  	
   

  	
  REQUIRED SWAP CONTRACTS

  	
   

  	
  54

  
	
  SECTION 4.10

  	
   

  	
  HAZARDOUS MATERIALS;
  REMEDIATION

  	
   

  	
  54

  
	
  SECTION 4.11

  	
   

  	
  FURTHER ASSURANCES

  	
   

  	
  54

  
	
  SECTION 4.12

  	
   

  	
  CLEAN DOWN

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  5. NEGATIVE COVENANTS

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.1

  	
   

  	
  DEBT

  	
   

  	
  56

  
	
  SECTION 5.2

  	
   

  	
  LIENS

  	
   

  	
  57

  
	
  SECTION 5.3

  	
   

  	
  CONTINGENT OBLIGATIONS

  	
   

  	
  58

  
	
  SECTION 5.4

  	
   

  	
  RESTRICTED DISTRIBUTIONS

  	
   

  	
  58

  
	
  SECTION 5.5

  	
   

  	
  RESTRICTIVE AGREEMENTS

  	
   

  	
  59

  
	
  SECTION 5.6

  	
   

  	
  PAYMENTS AND MODIFICATIONS
  OF SUBORDINATED DEBT

  	
   

  	
  59

  
	
  SECTION 5.7

  	
   

  	
  CONSOLIDATIONS, MERGERS
  AND SALES OF ASSETS

  	
   

  	
  60

  
	
  SECTION 5.8

  	
   

  	
  PURCHASE OF ASSETS,
  INVESTMENTS

  	
   

  	
  60

  
	
  SECTION 5.9

  	
   

  	
  TRANSACTIONS WITH
  AFFILIATES

  	
   

  	
  64

  
	
  SECTION 5.10

  	
   

  	
  MODIFICATION OF
  ORGANIZATIONAL DOCUMENTS

  	
   

  	
  64

  
	
  SECTION 5.11

  	
   

  	
  MODIFICATION OF CERTAIN
  AGREEMENTS

  	
   

  	
  65

  
	
  SECTION 5.12

  	
   

  	
  FISCAL YEAR

  	
   

  	
  65

  
	
  SECTION 5.13

  	
   

  	
  CONDUCT OF BUSINESS

  	
   

  	
  65

  
	
  SECTION 5.14

  	
   

  	
  INVESTOR FEES

  	
   

  	
  65

  
	
  SECTION 5.15

  	
   

  	
  [RESERVED]

  	
   

  	
  65

  
	
  SECTION 5.16

  	
   

  	
  LIMITATION ON SALE AND
  LEASEBACK TRANSACTIONS

  	
   

  	
  65

  
	
  SECTION 5.17

  	
   

  	
  BANK ACCOUNTS

  	
   

  	
  65

  
	
  SECTION 5.18

  	
   

  	
  COMPLIANCE WITH
  ANTI-TERRORISM LAWS

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  6. FINANCIAL COVENANTS

  	
   

  	
  66

  

 

ii

 

	
  SECTION 6.1

  	
   

  	
  CAPITAL EXPENDITURES

  	
   

  	
  66

  
	
  SECTION 6.2

  	
   

  	
  FIXED CHARGE COVERAGE
  RATIO

  	
   

  	
  67

  
	
  SECTION 6.3

  	
   

  	
  TOTAL DEBT TO EBITDA RATIO

  	
   

  	
  67

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  7. CONDITIONS

  	
   

  	
  68

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.1

  	
   

  	
  CONDITIONS TO CLOSING

  	
   

  	
  68

  
	
  SECTION 7.2

  	
   

  	
  CONDITIONS TO EACH LOAN,
  SUPPORT AGREEMENT AND LENDER LETTER OF CREDIT

  	
   

  	
  69

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  8. EVENTS OF DEFAULT

  	
   

  	
  70

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.1

  	
   

  	
  EVENTS OF DEFAULT

  	
   

  	
  70

  
	
  SECTION 8.2

  	
   

  	
  ACCELERATION AND SUSPENSION
  OR TERMINATION OF REVOLVING LOAN COMMITMENT

  	
   

  	
  72

  
	
  SECTION 8.3

  	
   

  	
  CASH COLLATERAL

  	
   

  	
  73

  
	
  SECTION 8.4

  	
   

  	
  DEFAULT RATE OF INTEREST
  AND SUSPENSION OF LIBOR RATE OPTIONS

  	
   

  	
  73

  
	
  SECTION 8.5

  	
   

  	
  SETOFF RIGHTS

  	
   

  	
  73

  
	
  SECTION 8.6

  	
   

  	
  APPLICATION OF PROCEEDS

  	
   

  	
  73

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  9. EXPENSES AND INDEMNITY

  	
   

  	
  75

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.1

  	
   

  	
  EXPENSES

  	
   

  	
  75

  
	
  SECTION 9.2

  	
   

  	
  INDEMNITY

  	
   

  	
  75

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  10. ADMINISTRATIVE AGENT

  	
   

  	
  76

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.1

  	
   

  	
  APPOINTMENT AND AUTHORIZATION

  	
   

  	
  76

  
	
  SECTION 10.2

  	
   

  	
  ADMINISTRATIVE AGENT AND
  AFFILIATES

  	
   

  	
  77

  
	
  SECTION 10.3

  	
   

  	
  ACTION BY ADMINISTRATIVE
  AGENT

  	
   

  	
  77

  
	
  SECTION 10.4

  	
   

  	
  CONSULTATION WITH EXPERTS

  	
   

  	
  77

  
	
  SECTION 10.5

  	
   

  	
  LIABILITY OF
  ADMINISTRATIVE AGENT

  	
   

  	
  77

  
	
  SECTION 10.6

  	
   

  	
  INDEMNIFICATION

  	
   

  	
  78

  
	
  SECTION 10.7

  	
   

  	
  RIGHT TO REQUEST AND ACT
  ON INSTRUCTIONS

  	
   

  	
  78

  
	
  SECTION 10.8

  	
   

  	
  CREDIT DECISION

  	
   

  	
  78

  
	
  SECTION 10.9

  	
   

  	
  COLLATERAL MATTERS

  	
   

  	
  79

  
	
  SECTION 10.10

  	
   

  	
  AGENCY FOR PERFECTION

  	
   

  	
  79

  
	
  SECTION 10.11

  	
   

  	
  NOTICE OF DEFAULT

  	
   

  	
  79

  
	
  SECTION 10.12

  	
   

  	
  SUCCESSOR ADMINISTRATIVE
  AGENT

  	
   

  	
  80

  
	
  SECTION 10.13

  	
   

  	
  DISBURSEMENTS OF REVOLVING
  LOANS; PAYMENT AND SHARING OF PAYMENT

  	
   

  	
  80

  
	
  SECTION 10.14

  	
   

  	
  RIGHT TO PERFORM, PRESERVE
  AND PROTECT

  	
   

  	
  83

  
	
  SECTION 10.15

  	
   

  	
  ADDITIONAL TITLED AGENTS

  	
   

  	
  84

  
	
  SECTION 10.16

  	
   

  	
  FUNDING AND SETTLEMENT
  PROVISIONS APPLICABLE WHEN NON-FUNDING REVOLVING LENDERS EXIST

  	
   

  	
  84

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  11. MISCELLANEOUS

  	
   

  	
  86

  

 

 

iii

 

	
  SECTION 11.1

  	
   

  	
  SURVIVAL

  	
   

  	
  86

  
	
  SECTION 11.2

  	
   

  	
  NO WAIVERS

  	
   

  	
  86

  
	
  SECTION 11.3

  	
   

  	
  NOTICES

  	
   

  	
  86

  
	
  SECTION 11.4

  	
   

  	
  SEVERABILITY

  	
   

  	
  87

  
	
  SECTION 11.5

  	
   

  	
  AMENDMENTS AND WAIVERS

  	
   

  	
  87

  
	
  SECTION 11.6

  	
   

  	
  ASSIGNMENTS; PARTICIPATIONS;
  REPLACEMENT OF LENDERS

  	
   

  	
  89

  
	
  SECTION 11.7

  	
   

  	
  HEADINGS

  	
   

  	
  92

  
	
  SECTION 11.8

  	
   

  	
  CONFIDENTIALITY

  	
   

  	
  92

  
	
  SECTION 11.9

  	
   

  	
  WAIVER OF CONSEQUENTIAL AND OTHER DAMAGES

  	
   

  	
  92

  
	
  SECTION 11.10

  	
   

  	
  MARSHALING; PAYMENTS SET
  ASIDE

  	
   

  	
  93

  
	
  SECTION 11.11

  	
   

  	
  GOVERNING LAW; SUBMISSION
  TO JURISDICTION

  	
   

  	
  93

  
	
  SECTION 11.12

  	
   

  	
  WAIVER OF JURY TRIAL

  	
   

  	
  93

  
	
  SECTION 11.13

  	
   

  	
  PUBLICATION; ADVERTISEMENT

  	
   

  	
  94

  
	
  SECTION 11.14

  	
   

  	
  COUNTERPARTS; INTEGRATION

  	
   

  	
  94

  
	
  SECTION 11.15

  	
   

  	
  NO STRICT CONSTRUCTION

  	
   

  	
  95

  
	
  SECTION 11.16

  	
   

  	
  USA PATRIOT ACT
  NOTIFICATION

  	
   

  	
  95

  

 

 

iv

 

ANNEXES, EXHIBITS AND SCHEDULES

 

	
  ANNEXES

  	
   

  	
   

  
	
  Annex A

  	
  -

  	
  Commitment Annex

  
	
  Annex B

  	
  -

  	
  Closing Checklist

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
  Assignment Agreement

  
	
  Exhibit B

  	
  -

  	
  Excess Cash Flow Certificate

  
	
  Exhibit C

  	
  -

  	
  Compliance Certificate

  
	
  Exhibit D

  	
  -

  	
  [Reserved]

  
	
  Exhibit E

  	
  -

  	
  Notice of Borrowing

  
	
  Exhibit F

  	
  -

  	
  Payment Notification

  

 

	
   

  	
   

  	
   

  
	
  SCHEDULES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 1.1(A)

  	
  -

  	
  Designated Leased Facilities

  
	
  Schedule 1.1(B)

  	
  -

  	
  Existing Letters of Credit

  
	
  Schedule 3.1

  	
  -

  	
  Existence, Organizational Identification Numbers, Foreign
  Qualification, Prior Names

  
	
  Schedule 3.4

  	
  -

  	
  Capitalization

  
	
  Schedule 3.6

  	
  -

  	
  Litigation

  
	
  Schedule 3.15

  	
  -

  	
  Brokers

  
	
  Schedule 3.17

  	
  -

  	
  Material Contracts

  
	
  Schedule 3.18

  	
  -

  	
  Environmental Compliance

  
	
  Schedule 3.19

  	
  -

  	
  Intellectual Property

  
	
  Schedule 3.20

  	
  -

  	
  Owned Real Estate

  
	
  Schedule 5.1

  	
  -

  	
  Debt

  
	
  Schedule 5.2

  	
  -

  	
  Liens

  
	
  Schedule 5.3

  	
  -

  	
  Contingent Obligations

  
	
  Schedule 5.8

  	
  -

  	
  Investments

  
	
  Schedule 5.9

  	
  -

  	
  Affiliate Transactions

  
	
  Schedule 5.13

  	
  -

  	
  Business Description

  

 

v

 

CREDIT AGREEMENT

 

CREDIT
AGREEMENT dated as of February 6, 2008 among FESTIVAL FUN PARKS, LLC, a
Delaware limited liability company, as Borrower, the financial institutions or
other entities from time to time parties hereto, each as a Lender, MERRILL
LYNCH BUSINESS FINANCIAL SERVICES INC., individually as a Lender, as
Administrative Agent and as Sole Bookrunner and Joint Lead Arranger, THE
GOVERNOR AND COMPANY OF THE BANK OF IRELAND, individually as a Lender and as
Joint Lead Arranger and Co-Syndication Agent, NATIXIS, individually as a Lender
and as Co-Syndication Agent, and GENERAL ELECTRIC CAPITAL CORPORATION,
individually as a Lender and as Co-Documentation Agent, and CHURCHILL FINANCIAL
LLC, as Co-Documentation Agent.

 

RECITALS:

 

WHEREAS,
Centaur Holdings United States, Inc., a Delaware corporation (“Purchaser”),  was organized
for the purpose of acquiring (the “Acquisition”)
all of the outstanding Capital Stock of Palace Entertainment Holdings, Inc.,
a Delaware corporation (“Holdings”),
from Palace Holdings Group, LLC, a Delaware limited liability company (“Seller”); and

 

WHEREAS, the
Acquisition was consummated pursuant to the terms of that certain Stock
Purchase and Contribution Agreement dated as of July 31, 2007 among
Seller, Holdings and Purchaser (as amended or otherwise modified to the date
hereof, and including all exhibits and schedules thereto, the “Purchase Agreement”); and

 

WHEREAS,
Borrower desires that Lenders extend certain term credit and working capital
facilities to Borrower to provide funds necessary to fund the Existing Notes
Tender Offer, the repayment of Debt under the Existing Credit Agreement and
related costs and expenses and to provide working capital financing for
Borrower; and

 

WHEREAS,
Borrower desires to secure all of the Obligations by granting to Administrative
Agent, for the benefit of Administrative Agent and Lenders, a first priority
perfected Lien upon substantially all of its personal and real property,
including without limitation all outstanding Capital Stock of each Subsidiary;
and

 

WHEREAS,
Holdings is willing to guaranty all of the Obligations, and to grant to
Administrative Agent, for the benefit of Administrative Agent and Lenders, a
first priority perfected Lien upon all of its personal and real property,
including without limitation, all outstanding Capital Stock of Borrower; and

 

WHEREAS,
subject to the limitations set forth herein, each Subsidiary is willing to
guaranty all of the Obligations, and to grant to Administrative Agent, for the
benefit of Administrative Agent and Lenders, a first priority perfected Lien
upon all of its personal and real property;

 

NOW,
THEREFORE, in consideration of the premises and the agreements, provisions and
covenants herein contained, Borrower, Lenders and Administrative Agent agree as
follows:

 

 

ARTICLE 1.

DEFINITIONS

 

Section 1.1            Certain Defined Terms.

 

The following
terms have the following meanings:

 

“Acceleration Event” means the occurrence of
an Event of Default (i) in respect of which Administrative Agent has
declared all or any portion of the Obligations to be immediately due and
payable pursuant to Section 8.2, (ii) pursuant to Section 8.1(a),
and in respect of which Administrative Agent has suspended or terminated the
Revolving Loan Commitment pursuant to Section 8.2 and/or (iii) pursuant
to either Section 8.1(f) and/or Section 8.1(g).

 

“Account Debtor” means “account debtor”, as
defined in Article 9 of the UCC.

 

“Accounts” means “accounts”, as defined in Article 9
of the UCC.

 

“Acquisition” has the meaning set forth in the Recitals to
this Agreement.

 

“Acquisition Documents” means the Purchase Agreement and all
agreements, documents and instruments executed and/or delivered pursuant
thereto or in connection therewith.

 

“Acquisition Pro Forma” has the meaning set forth in Section 5.8(b).

 

“Acquisition Projections” has the meaning set forth in Section 5.8(b).

 

“Additional Titled Agents” has the meaning set forth in Section 10.15.

 

“Adjusted EBITDA” has the meaning set forth in the Compliance
Certificate.

 

“Administrative Agent” means Merrill Lynch in its capacity as
administrative agent for itself and for Lenders hereunder, as such capacity is
established in, and subject to the provisions of, Article 10, and the
successors of Merrill Lynch in such capacity.

 

“Affected Lender” has the meaning set forth
in Section 11.6(c).

 

“Affiliate” means with respect to any Person (i) any
Person that directly or indirectly controls such Person, (ii) any Person
which is controlled by or is under common control with such controlling Person
and (iii) each of such Person’s (other than, with respect to any Lender,
any Lender’s) officers or directors (or Persons functioning in substantially
similar roles) and the spouses, parents, descendants and siblings of such
officers, directors or other Persons.  As
used in this definition, the term “control” of a
Person means the possession, directly or indirectly, of the power to vote five
percent (5%) or more of any class of voting Capital Stock of such Person or to
direct or cause the direction of the management or policies of a Person,
whether through the ownership of voting Capital Stock, by contract or
otherwise.

 

2

 

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

 

“Anti-Terrorism Laws” means any Laws
relating to terrorism or money laundering, including Executive Order No. 13224
(effective September 24, 2001), the USA PATRIOT Act, the Laws comprising
or implementing the Bank Secrecy Act, and the Laws administered by OFAC.

 

“Approved Fund” means any (i) investment
company, fund, trust, securitization vehicle or conduit that is (or will be)
engaged in making, purchasing, holding or otherwise investing in commercial
loans and similar extensions of credit in the ordinary course of its business
or (ii) any Person (other than a natural person) which temporarily
warehouses loans for any Lender or any entity described in the preceding clause
(i) and that, with respect to each of the preceding clauses (i) and
(ii), is administered or managed by (a) a Lender, (b) an Affiliate of
a Lender or (c) a Person (other than a natural person) or an Affiliate of
a Person (other than a natural person) that administers or manages a Lender.

 

“Asset Disposition” means any sale, lease, license, transfer,
assignment or other consensual disposition by any Credit Party of any asset,
but excluding (i) dispositions of Inventory or used, obsolete, worn-out or
surplus Equipment, all in the Ordinary Course of Business, (ii) dispositions
of Cash Equivalents for cash or in exchange for other Cash Equivalents, (iii) sales,
transfers and other dispositions of accounts receivable in connection with the
compromise, settlement or collection thereof in the Ordinary Course of
Business, (iv) the lease, assignment, license, sub-license or sub-lease of
any real or personal property in the Ordinary Course of Business to the extent
the same does not materially interfere with the business of Borrower or any Subsidiary
and  (v) any disposition of property
or assets or issuance of Capital Stock by Borrower or any Domestic Subsidiary
to Borrower or any other Domestic Subsidiary.

 

“Assignment Agreement” means an agreement
substantially in the form of Exhibit A hereto, or in the event
Administrative Agent institutes a Settlement Service pursuant to Section 11.6(a)(v),
such other agreement as may be prescribed by such Settlement Service.

 

“Bank of Ireland” means The Governor and Company of the Bank
of Ireland.

 

“Bankruptcy Code” means Title 11 of the
United States Code entitled “Bankruptcy”.

 

“Base Rate” means a
variable per annum rate, as of any date of determination, equal to the greater
of (i) the Federal Funds Rate plus one-half of one percent (0.50%)
per annum and (ii) the rate of interest which is identified and normally
published by Bloomberg Professional Service Page Prime as the “Prime Rate”
(or, if more than one rate is published as the Prime Rate, then the highest of
such rates).  Any change in the Base Rate
will become effective as of the date the rate of interest which is so
identified as the “Prime Rate” is different from that published on the
preceding Business Day.  If Bloomberg
Professional Service no longer reports the Prime Rate, or if such Page Prime
no longer exists, or Administrative Agent determines in good faith that the
rate so reported no longer accurately reflects an accurate determination of the
prevailing 

 

3

 

Prime Rate, Administrative Agent may select a reasonably comparable
index or source to use as the basis for the Base Rate.

 

“Base Rate Loans” means Loans which accrue
interest by reference to the Base Rate, in accordance with the terms of this
Agreement.

 

“Base Rate Margin” means 3.50% per annum.

 

“Blocked Person” means any Person:  (i) listed in the annex to, or is
otherwise subject to the provisions of, Executive Order No. 13224, (ii) owned
or controlled by, or acting for or on behalf of, any Person that is listed in
the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224,
(iii) with which any Lender is prohibited from dealing or otherwise
engaging in any transaction by any Anti-Terrorism Law, (iv) that commits,
threatens or conspires to commit or supports “terrorism” as defined in
Executive Order No. 13224; or (v) that
is named a “specially designated national” or “blocked person” on the most
current list published by OFAC or other similar list.

 

“Borrower” means Festival Fun Parks, LLC, a Delaware limited
liability company.

 

“Borrower’s Account” means the account specified on the
signature pages hereof below Borrower’s name into which Loans shall,
absent other instructions, be made, or such other account as Borrower may
specify by notice to Administrative Agent.

 

“Business Day” means any day except a Saturday, Sunday or
other day on which either the New York Stock Exchange is closed, or on which
commercial banks in Chicago and New York City are authorized by Law to close
and, in the case of a Business Day which relates to a LIBOR Loan, a day on
which dealings are carried on in the London interbank eurodollar market.

 

“Capital Expenditures” has the meaning provided in the
Compliance Certificate; provided,
that, solely for purposes of Article 6, no expenditures to acquire assets
pursuant to a Permitted Acquisition shall constitute Capital Expenditures.

 

“Capital Lease” of any Person means any lease of any property
by such Person as lessee which would, in accordance with GAAP, be required to
be accounted for as a capital lease on the balance sheet of such Person.

 

“Capital Stock” means 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” means any Investment in (i) direct
obligations of the United States or any agency thereof, or obligations
guaranteed by the United States or any agency thereof with a maturity date of
no more than one (1) year from the date of acquisition, (ii) commercial
paper with a duration of not more than nine (9) months rated at least A-1
by Standard & Poor’s Ratings Service and P-1 by Moody’s Investors
Services, Inc., which is issued by a Person (other than any Credit Party
or an Affiliate of any Credit Party) organized under the 

 

4

 

laws of any state of the United States or of the District of Columbia, (iii) time
deposits, certificates of deposit and banker’s acceptances with a duration of
not more than six (6) months issued by any office located in the United
States of any bank or trust company which is organized under the laws of the
United States or any state thereof, or is licensed to conduct a banking
business in the United States, and has capital, surplus and undivided profits
of at least $500,000,000 and which issues (or the parent of which issues)
certificates of deposit or commercial paper with a rating described in clause (ii) above,
(iv) repurchase agreements and reverse repurchase agreements with a
duration of not more than 30 days with respect to securities described in
clause (i) above entered into with an office of a bank or trust company
meeting the criteria specified in clause (iii) above, or (v) any
money market or mutual fund which invests only in the foregoing types of
investments, has portfolio assets in excess of $5,000,000,000 and is rated AAA
by Standard & Poor’s Ratings Service and Aaa by Moody’s Investors
Services, Inc.

 

“CERCLA” means the Comprehensive
Environmental Response, Compensation and Liability Act of 1980.

 

“Change of Control” means any of the events referred to in Section 8.1(j).

 

“Chattel Paper” means “chattel paper”, as defined
in Article 9 of the UCC.

 

“Closing Checklist” means Annex B to this
Agreement.

 

“Closing Date” means the date upon which the initial Loans
are funded hereunder.

 

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

 

“Collateral” means all property, now existing or hereafter
acquired, mortgaged or pledged to, or purported to be subjected to a Lien in
favor of, Administrative Agent, for the benefit of Administrative Agent and
Lenders, pursuant to the Security Documents.

 

“Commitment Annex” means Annex A to this Agreement.

 

“Commitment Expiry Date” means December 31, 2013.

 

“Compliance Certificate” means a
certificate, duly executed by a Responsible Officer, appropriately completed
and substantially in the form of Exhibit C hereto.

 

“Consolidated Subsidiary” means at any date any Subsidiary
the accounts of which would be consolidated with those of Holdings (or any other Person, as the
context may require hereunder) in its consolidated financial statements if such
statements were prepared as of such date.

 

“Contingent Obligation” means, with respect to any Person,
any direct or indirect liability of such Person:  (i) with respect to any debt, lease,
dividend or other obligation of another Person if the purpose or intent of such
Person incurring such liability, or the effect thereof, is to provide assurance
to the obligee of such liability that such liability will be paid or
discharged, or that any agreement relating thereto will be complied with, or
that any holder of 

 

5

 

such liability will be protected, in whole or in part, against loss
with respect thereto, (ii) with respect to any undrawn portion of any
letter of credit issued for the account of such Person or as to which such
Person is otherwise liable for the reimbursement of any drawing, (iii) under
any Swap Contract, to the extent not yet due and payable, (iv) to make
take-or-pay or similar payments if required regardless of nonperformance by any
other party or parties to an agreement; or (v) for any obligations of
another Person pursuant to any agreement to purchase, repurchase or otherwise
acquire any obligation or any property constituting security therefor, to
provide funds for the payment or discharge of such obligation or to preserve
the solvency, financial condition or level of income of another Person.  The amount of any Contingent Obligation shall
be equal to the amount of the obligation so guaranteed or otherwise supported
or, if not a fixed and determinable amount, the maximum amount so guaranteed or
otherwise supported.

 

“Controlled Group” means all members of a
group of corporations and all members of a group of trades or businesses
(whether or not incorporated) under common control which, together with
Borrower, are treated as a single employer under Section 414(b), (c), (m) or
(o) of the Code or Section 4001(b) of ERISA.

 

“Credit Exposure” means any period of time during which the
Revolving Loan Commitment is outstanding or any Loan, Reimbursement Obligation
or other Obligation remains unpaid, or any Letter of Credit or Support
Agreement not supported with cash collateral required by this Agreement remains
outstanding; provided, that no
Credit Exposure shall be deemed to exist solely due to the existence of
contingent indemnification liability, absent the assertion of a claim, or the
known existence of a claim reasonably likely to be asserted, with respect
thereto.

 

“Credit Party” means any of Holdings, Borrower, Palace
Finance and any Subsidiary of Borrower, whether now existing or hereafter
acquired or formed; and “Credit Parties”
means all such Persons, collectively.

 

“Debt” of a Person means at any date, without duplication, (i) all
obligations of such Person for borrowed money, (ii) all obligations of
such Person evidenced by bonds, debentures, notes or other similar instruments,
(iii) all obligations of such Person to pay the deferred purchase price of
property or services, except trade accounts payable arising and paid on a
timely basis and in the Ordinary Course of Business, (iv) all Capital
Leases of such Person, (v) all non-contingent obligations of such Person
to reimburse any bank or other Person in respect of amounts paid under a letter
of credit, banker’s acceptance or similar instrument, (vi) all Capital
Stock of such Person subject to repurchase or redemption otherwise than at the
sole option of such Person, (vii) all obligations secured by a Lien on any
asset of such Person, whether or not such obligation is otherwise an obligation
of such Person, (viii) “earnouts” and similar payment obligations of such
Person, and (ix) all Debt of others Guaranteed by such Person.  Without duplication of any of the foregoing,
Debt of Borrower shall include any and all Loans.

 

“Default” means any condition or event which with the giving
of notice or lapse of time or both would, unless cured or waived, become an
Event of Default.

 

“Defaulted Lender” means, so long as such
failure shall remain in existence and uncured, any Lender which shall have
failed to make any Loan or other credit accommodation, 

 

6

 

disbursement, settlement or reimbursement required pursuant to the
terms of any Financing Document.

 

“Designated Leased Facilities” means the leased facilities
listed on Schedule 1.1(A).

 

“Domestic Subsidiary” means a Subsidiary
organized, incorporated or otherwise formed under the laws of the United States
or Canada or any state or province thereof.

 

“EBITDA” has the meaning set forth in the Compliance
Certificate.

 

“Eligible Assignee” means (i) a Lender,
(ii) an Affiliate of a Lender, (iii) an Approved Fund, and (iv) any
other Person (other than a natural person, a Credit Party or an Affiliate of a
Credit Party) approved by (A) Administrative Agent (such approval not to
be unreasonably withheld), (B) in the case of any assignment of any
portion of the Revolving Loan Commitment, Swingline Lender (such approval not
to be unreasonably withheld), and (C) unless either (w) Administrative Agent has not notified Borrower that
Administrative Agent has completed a successful syndication of the Loans and/or
(x) an Event of Default has occurred and is continuing, Borrower
(such approval not to be unreasonably withheld, and shall be deemed provided
unless expressly withheld by Borrower within five (5) Business Days of
request therefor); provided that
notwithstanding the foregoing, (y) “Eligible
Assignee” shall not include Borrower or any of Borrower’s Affiliates or
Subsidiaries and (z) no proposed assignee intending to assume all or any
portion of the Revolving Loan Commitment shall be an Eligible Assignee unless
such proposed assignee either already holds a portion of the Revolving Loan
Commitment, or has been approved as an Eligible Assignee by Administrative
Agent and Swingline Lender.

 

“Eligible Swap Counterparty” means
Administrative Agent, any Affiliate of Administrative Agent, any Lender and/or
any Affiliate of any Lender that (i) at any time it occupies such role or
capacity (whether or not it remains in such capacity) enters into a Swap
Contract permitted hereunder with Borrower or any Subsidiary and (ii) in
the case of a Lender or an Affiliate of a Lender (other than an Affiliate of
Administrative Agent), maintains a reporting system acceptable to
Administrative Agent with respect to Swap Contract exposure and agrees with
Administrative Agent to provide regular reporting to Administrative Agent in
form and substance reasonably satisfactory to Administrative Agent, with
respect to such exposure.  In addition
thereto, any Affiliate of a Lender shall, upon Administrative Agent’s request,
execute and deliver to Administrative Agent a letter agreement pursuant to
which such Affiliate designates Administrative Agent as its agent and agrees to
share, pro rata, all expenses relating to liquidation of the Collateral for the
benefit of such Affiliate.

 

“Environmental Laws” means any and all Laws relating to the
environment or the effect of the environment on human health or to emissions,
discharges or releases of pollutants, contaminants, Hazardous Materials or
wastes into the environment, including ambient air, surface water, ground water
or land, or otherwise relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport or handling of pollutants,
contaminants, Hazardous Materials or wastes or the clean-up or other
remediation thereof.

 

7

 

 “Equipment”
means, collectively, “equipment” and “fixtures” (as each term is defined in Article 9
of the UCC).

 

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

 

“ERISA Plan” means any “employee benefit plan”, as such term is
defined in Section 3(3) of ERISA (other than a Multiemployer Plan),
which Borrower maintains, sponsors or contributes to, or, in the case of an
employee benefit plan which is subject to Section 412 of the Code or Title
IV of ERISA, to which Borrower or any member of the Controlled Group may have
any liability, including any liability by reason of having been a substantial
employer within the meaning of Section 4063 of ERISA at any time during
the preceding five years, or by reason of being deemed to be a contributing
sponsor under Section 4069 of ERISA.

 

“Event of
Default” has the meaning set forth in Section 8.1.

 

“Excess Cash
Flow” has the meaning provided in the Excess Cash Flow Certificate.

 

“Excess Cash
Flow Certificate” means a certificate, duly executed by a
Responsible Officer, appropriately completed and substantially in the form of Exhibit B
hereto.

 

“Existing
Credit Agreement” means the Credit Agreement dated as of April 12,
2006 among Holdings, Borrower, certain of Borrower’s Subsidiaries and GE
Capital.

 

“Existing
Letters of Credit” means the “Letters of Credit” (as defined in the
Existing Credit Agreement) identified on Schedule 1.1(B).

 

“Existing
Notes Indenture” means that Indenture dated as of April 12,
2006, among Holdings, Palace Finance, certain Subsidiaries of Borrower and
Wells Fargo Bank, N.A.

 

“Existing
Notes” means those certain 10-7/8%
Senior Notes due 2014 in an aggregate original principal amount of $150,000,000
issued pursuant to the Existing Notes Indenture.

 

“Existing
Notes Tender Offer” means the offer by
Borrower and Palace Finance to purchase all of the outstanding Existing Notes
on the terms set forth in the Offer to Purchase.

 

“Existing RBS
Debt” means Debt of Purchaser incurred under the Bridge Facility
Agreement dated as of August 23, 2007 among Purchaser, Monkwood Luxco
S.A.R.L. and The Royal Bank of Scotland PLC.

 

“Extraordinary Receipts” means any cash received by or paid to
or for the account of any Credit Party not in the Ordinary Course of Business
((and not consisting of proceeds described in any of Section 2.3(b), (c) and
(d)) including without limitation amounts received in respect of foreign,
United States, state or local tax refunds to the extent not included in the
calculation of EBITDA, pension plan reversions, purchase price and other
monetary adjustments made pursuant to any Acquisition Document and/or
indemnification payments made pursuant to any Acquisition Document (other than
such indemnification payments to the extent 

 

8

 

that
the amounts so received are applied by a Credit Party for the purpose of
replacing, repairing or restoring any assets or properties of a Credit Party,
thereby satisfying the condition giving rise to the claim for indemnification,
or otherwise covering any out-of-pocket expenses incurred by any Credit Party
in obtaining such payments); provided
that Extraordinary Receipts shall exclude any single or related series of
amounts received in an aggregate amount less than $1,000,000.

 

“Family
Entertainment Centers Division” means the operating division of
Borrower and its Subsidiaries engaged in operating family entertainment
centers, together with all other operating divisions of Borrower and its
Subsidiaries, but excluding the Waterparks Division.

 

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

 

“Fee Letter”
means the letter agreement of even date herewith between Borrower and Merrill
Lynch, as amended from time to time.

 

“Financing
Documents” means this Agreement, any Notes, the Security Documents,
any fee letter between Merrill Lynch and Borrower relating to the transactions
contemplated hereby, the Subordination Agreement, any subordination or
intercreditor agreement (other than the Subordination Agreement) pursuant to
which any Debt (other than the Subordinated Debt) and/or any Liens securing
such Debt is subordinated to all or any portion of the Obligations, and all
other documents, instruments and agreements (other than any Swap Contract)
contemplated herein or thereby and heretofore executed, executed concurrently
herewith or executed at any time and from time to time hereafter, as any or all
of the same may be amended, supplemented, restated or otherwise modified from
time to time.

 

“Fiscal Year”
means a fiscal year of Borrower, ending on September 30 of each calendar
year.

 

“Fixed Charge Coverage Ratio” has the meaning set forth in the
Compliance Certificate.

 

“Foreign Lender” has the meaning set forth in Section 2.18(c).

 

“Foreign Subsidiary” means
any Subsidiary other than a Domestic Subsidiary.

 

“GAAP”
means generally accepted accounting principles set forth from time to time in
the opinions and pronouncements of the Accounting Principles Board and the
American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board (or agencies with
similar functions of comparable stature and 

 

9

 

authority
within the United States accounting profession), which are applicable to the
circumstances as of the date of determination.

 

“GE Capital”
means General Electric Capital Corporation.

 

“Governmental Authority” means any nation or government, any
state or other political subdivision thereof, and any agency, department or
Person exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government and any corporation or
other Person owned or controlled (through stock or capital ownership or
otherwise) by any of the foregoing, whether domestic or foreign.

 

“Guarantee”
by any Person means any obligation, contingent or otherwise, of such Person
directly or indirectly guaranteeing any Debt or other obligation of any other
Person and, without limiting the generality of the foregoing, any obligation,
direct or indirect, contingent or otherwise, of such Person (i) to
purchase or pay (or advance or supply funds for the purchase or payment of)
such Debt or other obligation (whether arising by virtue of partnership
arrangements, by agreement to keep-well, to purchase assets, goods, securities
or services, to take-or-pay, or to maintain financial statement conditions or
otherwise) or (ii) entered into for the purpose of assuring in any other
manner the obligee of such Debt or other obligation of the payment thereof or
to protect such obligee against loss in respect thereof (in whole or in part), provided that the term Guarantee shall not include
endorsements for collection or deposit in the Ordinary Course of Business.  The term “Guarantee” used as a verb has a
corresponding meaning.

 

“Hazardous
Materials” means (i) any “hazardous substance” as defined in
CERCLA, (ii) any “hazardous waste” as defined by the Resource Conservation
and Recovery Act, (iii) asbestos, (iv) polychlorinated biphenyls, (v) petroleum,
its derivatives, by-products and other hydrocarbons, (vi) mold and (vii) any
other pollutant, toxic, radioactive, caustic or otherwise hazardous substance
regulated under Environmental Laws.

 

“Hazardous
Materials Contamination” means contamination (whether now existing
or hereafter occurring) of the improvements, buildings, facilities, soil,
groundwater, air or other elements on or of the relevant property by Hazardous
Materials, or any derivatives thereof, or on or of any other property as a
result of Hazardous Materials, or any derivatives thereof, generated on,
emanating from or disposed of in connection with the relevant property.

 

“Holdings”
has the meaning set forth in the Recitals to this Agreement.

 

“Indemnitees”
has the meaning set forth in Section 9.2.

 

“Instrument” means “instrument”, as defined in Article 9
of the UCC.

 

“Intellectual Property” means, with respect to any Person, all
patents, trademarks, trade names, trade styles, trade dress, service marks,
logos and other business identifiers, copyrights, technology, know-how and
processes, computer hardware and software and all applications and licenses
therefor, used in or necessary for the conduct of business by such Person.

 

10

 

“Interest Period” means, as to any LIBOR Loan, the period
commencing on the date such Loan is borrowed or continued as, or converted
into, a LIBOR Loan and ending on the date one (1), two (2), three (3), six (6) months
or, if all applicable Lenders are
capable thereof, nine (9) or twelve (12) months thereafter (or,
prior to the earlier of 90 days after the Closing Date and the completion of a
Successful Syndication (as defined in the Fee Letter), ending on the date one (1) Business
Day thereafter), as selected by Borrower pursuant to Section 2.12(f); provided, that:  (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 following 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 preceding Business Day, (ii) any
Interest Period that begins on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period
shall end on the last Business Day of the calendar month at the end of such
Interest Period, (iii) Borrower may not select any Interest Period for a
Revolving Loan which would extend beyond the Commitment Expiry Date; and (iv) Borrower
may not select any Interest Period for Term Loan B if, after giving effect to
such selection, the aggregate principal amount of Term Loan B having Interest
Periods ending after any date on which an installment of Term Loan B is
scheduled to be repaid would exceed the aggregate principal amount of Term Loan
B scheduled to be outstanding after giving effect to such repayment.

 

“Inventory”
means “inventory”, as defined in Article 9 of the UCC.

 

“Investment”
means any investment in any Person, whether by means of acquiring (whether for
cash, property, services, Capital Stock or otherwise), making or holding Debt
securities, Capital Stock, capital contributions, loans, time deposits,
advances, Guarantees or otherwise.  The
amount of any Investment shall be the original cost of such Investment plus
the cost of all additions thereto, without any adjustments for increases or
decreases in value, or write-ups, write-downs or write-offs with respect
thereto.

 

“Investors”
means Candover investments plc, Candover 2005 Fund US No.1 LLP, Candover 2005
Fund US No.2 LLP, Candover 2005 Fund US No.3 LLP, Candover 2005 Fund US No.4
LLP, Candover 2005 Fund UK No.1 LLP, Candover 2005 Fund UK No.2 LLP, Candover
2005 Fund UK No.3 LLP, Candover (Trustees) Ltd acting on behalf of Candover
2005 Fund Direct Co-Investment Plan, Candover (Trustees) Ltd acting on behalf
of Candover 2005 Fund Direct Co-Investment Scheme and Northern Trust Fiduciary
Services (Guernsey) Ltd.

 

“Laws” means any and all federal, state, local and foreign statutes,
laws, judicial decisions, regulations, guidances, guidelines, ordinances,
rules, judgments, orders, decrees, codes, plans, injunctions, permits,
concessions, grants, franchises, governmental agreements and governmental
restrictions, whether now or hereafter in effect.

 

“LC Issuer”
means one or more banks, trust companies or other Persons in each case
expressly identified by Administrative Agent from time to time, in its sole
discretion, as an LC Issuer for purposes of issuing one or more Letters of Credit
hereunder.  Without limitation of
Administrative Agent’s discretion to identify any Person as an LC Issuer, no
Person shall be designated as an LC Issuer unless such Person maintains
reporting systems acceptable to Administrative Agent with respect to letter of
credit exposure and agrees to provide regular reporting to Administrative Agent
satisfactory to it with respect to such exposure.

 

11

 

“Lender”
means each of (i) Merrill Lynch, (ii) each other Person party hereto
in its capacity as a lender, (iii) each other Eligible Assignee that
becomes a party hereto pursuant to Section 11.6, (iv) Administrative
Agent, to the extent of any Revolving Loans made by Administrative Agent which
have not been settled among Lenders pursuant to Section 10.13, and (v) the
respective successors of all of the foregoing, and “Lenders” means all of the
foregoing.  In addition to the foregoing,
solely for the purpose of identifying the Persons entitled to share in payments
and collections from the Collateral as more fully set forth in this Agreement
and the Security Documents, the term “Lender” shall include Eligible Swap
Counterparties.  In connection with any
such distribution of payments and collections, Administrative Agent shall be
entitled to assume that no amounts are due to any Eligible Swap Counterparty
unless such Eligible Swap Counterparty has notified Administrative Agent of the
amount of any such liability owed to it prior to such distribution.

 

“Lender Letter of Credit” means a Letter of Credit issued by an
LC Issuer that is also, at the time of issuance of such Letter of Credit, a
Lender.

 

“Letter of
Credit” means a standby or documentary (trade) letter of credit
issued for the account of Borrower by an LC Issuer which expires by its terms
within one year after the date of issuance and in any event at least thirty
(30) days prior to the Commitment Expiry Date. 
Notwithstanding the foregoing, a Letter of Credit may provide for
automatic extensions of its expiry date for one or more successive one (1) year
periods provided that the LC Issuer that issued such Letter of Credit has the
right to terminate such Letter of Credit on each such annual expiration date
and no renewal term may extend the term of the Letter of Credit to a date that
is later than the thirtieth (30th) day prior to the Commitment
Expiry Date.  Each Letter of Credit shall
be either a Lender Letter of Credit or a Supported Letter of Credit.  All Existing Letters of Credit shall be
deemed Letters of Credit hereunder.

 

“Letter of
Credit Liabilities” means, at any time of calculation, the sum of (i) without
duplication, the amount then available for drawing under all outstanding Lender
Letters of Credit and all Supported Letters of Credit, in each case without
regard to whether any conditions to drawing thereunder can then be met plus (ii) without duplication, the aggregate unpaid
amount of all reimbursement obligations in respect of previous drawings made
under all such Lender Letters of Credit and Supported Letters of Credit.

 

“LIBOR” means, with respect to any LIBOR Loan for any Interest
Period, a rate per annum (rounded upwards, if necessary, to the nearest 1/100
of 1%) equal to (i) the rate of interest which is identified and normally
published by Bloomberg Professional Service Page BBAM 1 as the offered
rate for loans in United States dollars for the applicable Interest Period
under the caption British Bankers Association LIBOR Rates as of 11:00 a.m.
(London time), on the second full Business Day next preceding the first day of
such Interest Period (unless such date is not a Business Day, in which event
the next succeeding Business Day will be used); divided by (ii) the sum of
one minus the daily average during such Interest Period of the aggregate maximum
reserve requirement (expressed as a decimal) then imposed under Regulation D of
the Board of Governors of the Federal Reserve System (or any successor thereto)
for “Eurocurrency Liabilities” (as defined therein).  If Bloomberg Professional Service no longer
reports the LIBOR or Administrative Agent determines in good faith that the
rate so reported no longer accurately reflects the rate available to
Administrative Agent in the London Interbank Market or if such index no longer
exists or if Page BBAM 1 no longer exists or 

 

12

 

accurately
reflects the rate available to Administrative Agent in the London Interbank
Market, Administrative Agent may select a replacement index or replacement
page, as the case may be.

 

“LIBOR Loans” means any Loans, other than Swingline Loans,
which accrue interest by reference to the LIBOR, in accordance with the terms
of this Agreement.

 

“LIBOR Margin” means 4.50% per annum.

 

“Lien”
means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind, or any other type of preferential
arrangement that has the practical effect of creating a security interest, in
respect of such asset.  For the purposes
of this Agreement and the other Financing Documents, a Credit Party shall be
deemed to own subject to a Lien any asset which it has acquired or holds
subject to the interest of a vendor or lessor under any conditional sale
agreement, Capital Lease or other title retention agreement relating to such
asset.

 

“Litigation” means any action, suit or proceeding before any
court, mediator, arbitrator or Governmental Authority.

 

“Loan Account”
has the meaning set forth in Section 2.16.

 

“Loans”
means Term Loan B, the Revolving Loans and the Swingline Loans, or any
combination of the foregoing, as the context may require.

 

“Major
Casualty Proceeds” means (i) the aggregate insurance proceeds
received in connection with one or more related events under any Property
Insurance Policy or (ii) any award or other compensation with respect to
any eminent domain, condemnation of property or similar proceedings (or any
transfer or disposition of property in lieu of condemnation), if the amount of such aggregate insurance
proceeds or award or other compensation exceeds $3,000,000.

 

“Margin Stock”
has the meaning assigned thereto in Regulation U of the Federal Reserve Board.

 

“Material
Adverse Effect” means, with respect to any event, act, condition or
occurrence of whatever nature (including any adverse determination in any
litigation, arbitration, or governmental investigation or proceeding), whether
singly or in conjunction with any other event or events, act or acts, condition
or conditions, occurrence or occurrences, whether or not related, a material
adverse change in, or a material adverse effect upon, any of (i) the
financial condition, operations, business or properties of the Credit Parties, taken as a whole, (ii) the
material rights and remedies of Administrative Agent or Lenders under any
Financing Document, or the ability of the Credit Parties, taken as a whole, to
perform any of their obligations under the Financing Documents, (iii) the
legality, validity or enforceability of any material provision of any Financing
Document, or (iv) the existence, perfection or priority of any security
interest granted in any Financing Document or the value of any material
Collateral.

 

“Material Contracts” has the meaning set forth in Section 3.17.

 

“Maximum Lawful Rate” has the meaning set forth in Section 2.17(b).

 

13

 

“Merrill Lynch” means Merrill Lynch Business Financial Services
Inc. and its successors.

 

“Multiemployer Plan” means a multiemployer plan, that is
intended to meet the definition set forth in Section 4001(a)(3) of
ERISA, to which Borrower or any member of the Controlled Group has any
liability.

 

“Net Cash
Proceeds” means, with respect to any transaction or event, an amount
equal to the cash proceeds received by any Credit Party from or in respect of
such transaction or event (including proceeds of any non-cash proceeds of such
transaction), less (i) any out-of-pocket expenses paid to a Person that
are reasonably incurred by such Credit Party in connection therewith and (ii) in
the case of an Asset Disposition, the amount of any Debt (other than the
Obligations) secured by a Lien on the related asset and discharged from the
proceeds of such Asset Disposition and any taxes (including transfer taxes)
paid or reasonably estimated by the applicable Credit Party to be payable by
such Person or its Affiliates in respect of such Asset Disposition (provided, that if the actual amount of
taxes paid is less than the estimated amount, the difference shall immediately
constitute Net Cash Proceeds).

 

“Net
Revolving Facility Usage” means, as of any date of calculation, an
amount (expressed as a positive or negative number, as applicable) equal to (i) the
sum of the Revolving Loan Outstandings (excluding Letter of Credit Liabilities)
plus the Swingline Loan Outstandings on such date minus (ii) the
aggregate amount of unrestricted cash and Cash Equivalents of the Credit
Parties on such date (reconciled for outstanding checks and similar items), in
each case held in a depository account or investment account subject to a first
priority Lien in favor of Administrative Agent and a springing blocked account
or control agreement in favor of Administrative Agent.

 

“Non-Funding
Revolving Lender” has the meaning set forth in Section 10.16.

 

“Notes”
means the Term Notes B, the Revolving Loan Notes and the Swingline Loan Note,
or any combination of the foregoing, as the context may require.

 

“Notice of
Borrowing” means a notice of a Responsible Officer, appropriately
completed and substantially in the form of Exhibit E hereto.

 

“Notice of LC
Credit Event” means a notice from a Responsible Officer to
Administrative Agent with respect to any issuance, increase or extension of a
Letter of Credit specifying (i) the date of issuance or increase of a
Letter of Credit, (ii) the identity of LC Issuer with respect to such
Letter of Credit, (iii) the expiry date of such Letter of Credit, (iv) the
proposed terms of such Letter of Credit, including the face amount; and (v) the
transactions that are to be supported or financed with such Letter of Credit or
increase thereof.

 

“Obligations” means all obligations, liabilities and
indebtedness (monetary (including post-petition interest, whether or not
allowed) or otherwise) of each Credit Party under this Agreement or any other
Financing Document, in each case howsoever created, arising or evidenced,
whether direct or indirect, absolute or contingent, now or hereafter existing,
or due or to become due.  In addition to,
but without duplication of, the foregoing, the Obligations shall include,
without limitation, all obligations, liabilities and indebtedness arising from
or in 

 

14

 

connection
with (i) all Support Agreements, (ii) all Lender Letters of Credit
and (iii) all Swap Contracts entered into with any Eligible Swap
Counterparty.

 

“OFAC” means the U.S. Department of Treasury Office of Foreign
Assets Control.

 

“OFAC Lists” means, collectively, the Specially Designated
Nationals and Blocked Persons List maintained by OFAC pursuant to Executive
Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) and/or any other list
of terrorists or other restricted Persons maintained pursuant to any of the rules and
regulations of OFAC or pursuant to any other applicable Executive Orders.

 

“Offer to
Purchase” means the Offer to Purchase and Consent Solicitation
Statement dated December 20, 2007, delivered by Borrower and Palace
Finance to the holders of the Existing Notes.

 

“Operative
Documents” means the Financing Documents, the Acquisition Documents,
the Offer to Purchase and the Subordinated Debt Documents.

 

“Ordinary Course of Business” means, in respect of any
transaction involving any Credit Party, the ordinary course of such Credit
Party’s business, as conducted by such Credit Party in accordance with past
practices or in a manner reasonably related thereto.

 

“Organizational
Documents” means, with respect to any Person other than a natural
person, the documents by which such Person was organized (such as a certificate
of incorporation, certificate of limited partnership or articles of
organization, and including, without limitation, any certificates of
designation for preferred stock or other forms of preferred equity) and which
relate to the internal governance of such Person (such as by-laws, a
partnership agreement or an operating, limited liability company or members
agreement).

 

“Palace
Finance” means Palace Finance, Inc., a Delaware corporation and
a direct wholly-owned Subsidiary of Borrower.

 

“Park” means any
water park or family entertainment center now or hereafter owned and operated
by Borrower or any of its Subsidiaries.

 

“Parent”
means Centaur Luxco S.A.R.L., a Luxembourg entity.

 

“Participant” has the meaning set forth in Section 11.6(b).

 

“Payment
Account” means the account specified on the signature pages hereof
into which all payments by or on behalf of Borrower to Administrative Agent
under the Financing Documents shall be made, or such other account as
Administrative Agent shall from time to time specify by notice to Borrower.

 

“Payment Notification” means a written notification
substantially in the form of Exhibit F hereto.

 

15

 

“PBGC” means the Pension Benefit Guaranty Corporation and any
Person succeeding to any or all of its functions under ERISA.

 

“Pension Plan” means any ERISA Plan that is subject to Section 412
of the Code or Title IV of ERISA.

 

“Permits” has the meaning set forth in Section 3.1.

 

“Permitted Acquisition” has the meaning
set forth in Section 5.8(b).

 

“Permitted
Contest” means a contest maintained in good faith by appropriate
proceedings promptly instituted and diligently conducted and with respect to
which such reserve or other appropriate provision, if any, as shall be required
in conformity with GAAP shall have been made; provided that
compliance with the obligation that is the subject of such contest is
effectively stayed during such challenge.

 

“Permitted
Liens” means Liens permitted pursuant to Section 5.2.

 

“Person”
means any natural person, corporation, limited liability company, professional
association, limited partnership, general partnership, joint stock company,
joint venture, association, company, trust, bank, trust company, land trust,
business trust or other organization, whether or not a legal entity, and any
Governmental Authority.

 

“Pro Forma Acquisition
EBITDA” has the meaning provided in the Compliance
Certificate.

 

“Property
Insurance Policy” means any insurance policy maintained by any
Credit Party covering losses with respect to tangible real or personal property
or improvements or losses from business interruption.

 

“Pro Rata Share” means (i) with respect to a Lender’s
right to receive payments of principal and interest with respect to Term
Loan B, the Term Loan B Commitment Percentage of such Lender, (ii) with
respect to a Lender’s obligation to make Revolving Loans (including without
limitation Overadvance Revolving Loans), to purchase interests and
participations in Letters of Credit and related Support Agreement liabilities
and obligations pursuant to Section 2.14(f), such Lender’s right to
receive the unused line fee described in Section 2.12(b), and such Lender’s
obligation to share in Letter of Credit Liabilities and to receive the related
Letter of Credit fee described in Section 2.14(b), the Revolving Loan
Commitment Percentage of such Lender, (iii) with respect to a Lender’s
right to receive payments of principal and interest with respect to Revolving
Loans, such Lender’s Revolving Loan Exposure with respect thereto and (iv) for
all other purposes (including without limitation the indemnification
obligations arising under Section 10.6) with respect to any Lender, the
percentage obtained by dividing (A) the sum of the Revolving Loan
Commitment Amount of such Lender (or, in the event the Revolving Loan
Commitment shall have been terminated, such Lender’s then existing Revolving
Loan Outstandings), plus such Lender’s then outstanding principal amount of
Term Loan  B by (B) the sum of the Revolving
Loan Commitment (or, in the event the Revolving Loan Commitment shall have been
terminated, the then existing Revolving Loan Outstandings) of all Lenders, plus
the then outstanding principal amount of Term Loan  B
of all Lenders.

 

16

 

“Purchase Agreement” has the meaning set forth in the Recitals
to this Agreement.

 

“Purchaser”
has the meaning set forth in the Recitals to this Agreement.

 

“RBS
Restricted Distribution” has the meaning set forth in Section 5.4.

 

“Reimbursement
Obligations” means, at any date, the obligations of Borrower then
outstanding to reimburse (i) Administrative Agent for payments made by
Administrative Agent under a Support Agreement and/or (ii) any LC Issuer,
for payments made by such LC Issuer under a Lender Letter of Credit.

 

“Replacement Lender” has the meaning set forth in Section 11.6(c).

 

“Required
Lenders” means, subject to the provisions of Section 10.13(d),
at any time Lenders holding (i) more than sixty-six and two-thirds percent
(66-2/3%) of the sum of the Revolving Loan Commitment and the outstanding principal
balance of Term Loan B(or, at any time prior to the funding of Term Loan B, the
aggregate Term Loan B commitments set forth on the Commitment Annex) (provided,
that such percentage shall be reduced from “sixty-six and two-thirds percent
(66-2/3%)” to “fifty percent (50%)” at any time if, at such time, no Lender,
together with its Affiliates and Approved Funds, holds more than thirty-eight
percent (38%) of the foregoing sum) or (ii) if the Revolving Loan
Commitment has been terminated, more than sixty-six and two-thirds percent
(66-2/3%) of the sum of (A) the then aggregate outstanding principal
balance of the Loans plus (B) the then aggregate amount of Letter of
Credit Liabilities (provided, that such percentage shall be reduced from
“sixty-six and two-thirds percent (66-2/3%)” to “fifty percent (50%)” at any
time if, at such time, no Lender, together with its Affiliates and Approved
Funds, holds more than thirty-eight percent (38%) of the foregoing sum).

 

“Required Revolving Lenders” means, subject to the provisions
of Section 10.13(d), at any time Revolving Lenders holding (i) more
than sixty-six and two-thirds percent (66-2/3%) of the Revolving Loan
Commitment (provided, that such percentage shall be reduced from “sixty-six
and two-thirds percent (66-2/3%)” to “fifty percent (50%)” at any time if, at
such time, no Lender, together with its Affiliates and Approved Funds, holds
more than thirty-eight percent (38%) of the foregoing sum) or (ii) if the
Revolving Loan Commitment has been terminated, more than sixty-six and
two-thirds percent (66-2/3%) of the sum of (A) the then aggregate
outstanding principal balance of the Revolving Loans plus (B) the then
aggregate amount of Letter of Credit Liabilities (provided, that such
percentage shall be reduced from “sixty-six and two-thirds percent (66-2/3%)”
to “fifty percent (50%)” at any time if, at such time, no Lender, together with
its Affiliates and Approved Funds, holds more than thirty-eight percent (38%)
of the foregoing sum).

 

“Required Swap Contract”  means any Swap
Contract entered into to comply with the requirements of Section 4.9
regardless of whether such Swap Contract exceeds the minimum requirements set
forth in Section 4.9.

 

“Responsible Officer” means any of the Chief Executive Officer,
Chief Financial Officer or any other officer of Borrower acceptable to
Administrative Agent.

 

17

 

“Restricted
Distribution” means as to any Person (i) any dividend or other
distribution (whether in cash, Capital Stock or other property) on any equity
interest in such Person (except those payable solely in Capital Stock of the
same class) or (ii) any payment by such Person on account of (A) the
purchase, redemption, retirement, defeasance, surrender, cancellation, termination
or acquisition of any Capital Stock in such Person or any claim respecting the
purchase or sale of any equity interest in such Person or (B) any option,
warrant or other right to acquire any Capital Stock in such Person.

 

“Revolving Lender” means each Lender having a Revolving Loan
Commitment Amount in excess of zero (or, in the event the Revolving Loan
Commitment shall have been terminated at any time, each Lender at such time
having Revolving Loan Outstandings in excess of zero).

 

“Revolving Loan Borrowing”
means a borrowing of a Revolving Loan.

 

“Revolving Loan Commitment”
means, as of any date of determination, the aggregate Revolving Loan Commitment
Amounts of all Lenders as of such date.

 

“Revolving Loan Commitment Amount” means, as to any Lender, the
dollar amount set forth opposite such Lender’s name on the Commitment Annex
under the column “Revolving Loan Commitment Amount” (if such Lender’s name is
not so set forth thereon, then the dollar amount on the Commitment Annex for
the Revolving Loan Commitment Amount for such Lender shall be deemed to be
zero), as such amount may be adjusted from time to time by any “Amounts
Assigned” (with respect to such Lender’s portion of Revolving Loans outstanding
and its commitment to make Revolving Loans) pursuant to the terms of any and
all effective Assignment Agreements to which such Lender is a party.

 

“Revolving Loan Commitment Percentage”
means, as to any Lender, (i) on the Closing Date, the percentage set forth
opposite such Lender’s name on the Commitment Annex under the column “Revolving
Loan Commitment Percentage” (if such Lender’s name is not so set forth thereon,
then, on the Closing Date, such percentage for such Lender shall be deemed to
be zero) and (ii) on any date following the Closing Date, the percentage
equal to the Revolving Loan Commitment Amount of such Lender on such date divided by the aggregate Revolving Loan
Commitment Amounts of all Lenders on such date.

 

“Revolving
Loan Exposure” means, with respect to any Lender on any date of
determination, the percentage equal to the amount of such Lender’s Revolving
Loan Outstandings on such date divided by the aggregate Revolving Loan
Outstandings of all Lenders on such date.

 

“Revolving Loan Limit” means,
as of any date of calculation, the Revolving Loan Commitment minus the
amount of Swingline Loan Outstandings.

 

“Revolving  Loan Note” has the meaning set forth in Section 2.13.

 

“Revolving Loan Outstandings”
means at any time of calculation (i) the sum of the then existing
aggregate outstanding principal amount of Revolving Loans plus
the then existing Letter of Credit Liabilities and (ii) when used with
reference to any single Lender, the 

 

18

 

sum
of the then existing outstanding principal amount of Revolving Loans advanced
by such Lender plus the then existing Letter of
Credit Liabilities for the account of such Lender.

 

“Revolving Loans” has the
meaning set forth in Section 2.6.

 

“Security
Documents” means any agreement, document or instrument executed
concurrently herewith or at any time hereafter pursuant to which one or more
Credit Parties or any other Person either (i) Guarantees payment or
performance of all or any portion of the Obligations and/or (ii) provides,
as security for all or any portion of the Obligations, a Lien on any of its
assets in favor of Administrative Agent for its own benefit and the benefit of
Lenders, as any or all of the same may be amended, supplemented, restated or
otherwise modified from time to time.

 

“Seller” has the meaning set forth in the Recitals to this
Agreement.

 

“Senior Debt” means, as of any date, Total Debt as of such date
(but excluding Subordinated Debt).

 

“Senior Debt
to EBITDA Ratio” means, as of any date, the ratio of Senior Debt as
of such date to Adjusted EBITDA for the twelve-month period then ended.

 

“Settlement Date” has the meaning set forth in Section 10.13(a).

 

“Settlement Service” has the meaning set forth in Section 11.6(a).

 

“Solvent” means, with respect to any Person, that such Person (i) owns
and will own assets the fair saleable value of which are (A) greater than
the total amount of its liabilities (including the reasonably expected amount
of Contingent Obligations) and (B) greater than the amount that will be
required to pay the probable liabilities of its then existing debts as they
become absolute and matured considering all financing alternatives and
potential asset sales reasonably available to it, (ii) has capital that is
not unreasonably small in relation to its business as presently conducted or
after giving effect to any contemplated transaction and (iii) does not
intend to incur and does not believe that it will incur debts beyond its
ability to pay such debts as they become due.

 

“Stated Rate” has the meaning set forth in Section 2.17(b).

 

“Subordinated Debt” means Debt of Borrower owing to the
Subordinated Debt Holders in an original principal amount of $61,500,000
(together with capitalized interest, fees, costs and other amounts) incurred
pursuant to the terms of the Subordinated Debt Documents.

 

“Subordinated
Debt Holders” means the holders of the Subordinated Notes (and their
respective successors and assigns).

 

“Subordinated Debt Documents” means the Investment Agreement of
even date herewith among Borrower and the Subordinated Debt Holders (the “Subordinated
Purchase Agreement”), the Subordinated Notes issued thereunder and all
guaranties issued thereunder, in each case as amended, supplemented or
otherwise modified from time to time in accordance with the terms hereof.

 

19

 

“Subordinated Notes” means those Senior Subordinated Notes in
the initial aggregate principal amount of $61,500,000 issued pursuant to the
Subordinated Purchase Agreement.

 

“Subordination Agreement” means that certain
Subordination and Intercreditor Agreement dated as of the Closing Date among
Administrative Agent, the Credit Parties and the Subordinated Debt Holders, as
the same may be amended, supplemented, restated or otherwise modified from time
to time in accordance with the terms thereof.

 

“Subsidiary” means, with respect to any Person, (i) any
corporation of which an aggregate of more than 50% of the outstanding Capital
Stock having ordinary voting power to elect a majority of the board of
directors of such corporation (irrespective of whether, at the time, Capital
Stock of any other class or classes of such corporation shall have or might
have voting power by reason of the happening of any contingency) is at the
time, directly or indirectly, owned legally or beneficially by such Person or
one or more Subsidiaries of such Person, or with respect to which any such
Person has the right to vote or designate the vote of more than 50% of such
Capital Stock whether by proxy, agreement, operation of Law or otherwise, and (ii) any
partnership or limited liability company in which such Person and/or one or
more Subsidiaries of such Person shall have an interest (whether in the form of
voting or participation in profits or capital contribution) of more than 50% or
of which any such Person is a general partner or may exercise the powers of a
general partner.  Unless the context
otherwise requires, each reference to a Subsidiary shall be a reference to a
Subsidiary of Borrower.

 

“Support Agreement” has the meaning set forth in Section 2.14(a).

 

“Supported Letter of Credit” means a Letter
of Credit issued by an LC Issuer in reliance on one or more Support Agreements
(for purposes hereof, each Existing Letter of Credit shall be deemed a
Supported Letter of Credit).

 

“Swap Contract” means any “swap agreement”,
as defined in Section 101 of the Bankruptcy Code.

 

“Swingline Lender” means Merrill Lynch or
any Lender expressly identified by Merrill Lynch as the Swingline Lender or, if
Merrill Lynch shall at any time resign as Swingline Lender, a Lender other than
Merrill Lynch selected by Administrative Agent in its sole discretion and
reasonably acceptable to Borrower.

 

“Swingline Loan” has the meaning set forth
in Section 2.11(a).

 

“Swingline Loan Borrowing” means a borrowing
of a Swingline Loan.

 

“Swingline Loan Limit” means, as of any date of calculation,
the smaller of the following amounts: (i) $5,000,000 and (ii) the
Revolving Loan Commitment minus the amount of Revolving Loan
Outstandings.

 

“Swingline Loan Note” has the meaning set
forth in Section 2.13.

 

“Swingline Loan Outstandings” means, at any
time of calculation, the then existing aggregate outstanding principal amount
of Swingline Loans.

 

20

 

“Target” has
the meaning set forth in Section 5.8(b).

 

“Taxes” has the meaning set forth in Section 2.18.

 

“Term Loan B” has the meaning set forth in Section 2.1.

 

“Term Loan B Commitment Percentage” means, as to any Lender, (i) on
or prior to the Closing Date, the percentage set forth opposite such Lender’s
name on the Commitment Annex under the column “Term Loan B
Commitment Percentage” (if such Lender’s name is not so set forth
thereon, then, on or prior to the Closing Date, such percentage for such Lender
shall be deemed to be zero) and (ii) on any date following the Closing
Date, the percentage equal to the principal amount of Term Loan B held by such
Lender on such date divided by
the aggregate principal amount of Term Loan B on such date.

 

“Term Note B” has the meaning set forth in Section 2.13.

 

“Termination Date” has the meaning set forth in Section 2.9(a).

 

“Threshold
Amount” means, in connection with an Asset Disposition
of a Park, an amount equal to the product of (i) EBITDA contributed by
such Park for the most recent four quarter period preceding the date of such Asset
Disposition for which information is available (calculated by Borrower in a
manner reasonably satisfactory to Administrative Agent) (if a negative number,
such amount shall be deemed to be zero) multiplied by (ii) the
maximum Total Debt to EBITDA ratio permitted under Section 6.3 as of the
last day of such four quarter period; provided, that for purposes of this
clause (ii), the maximum Total Debt to EBITDA ratio at such time pursuant to Section 6.3
shall be deemed to be the maximum ratio at such time minus 0.25.

 

“Total Debt” has the meaning provided in the Compliance
Certificate.

 

“Total Debt to EBITDA Ratio” has the meaning
provided in the Compliance Certificate.

 

“UCC” means the Uniform Commercial Code of
the State of New York or of any
other state the Laws of which are required to be applied in connection with the
perfection of security interests in any Collateral.

 

“Unapplied Excess Cash Flow” means, with respect to any
Fiscal Year, the amount of Excess Cash Flow for such Fiscal Year less
the portion thereof required to be applied as a prepayment of the Loans in
accordance with Section 2.3(a).

 

“United States” means the United States of
America.

 

“Wholly-Owned Domestic Subsidiary” means any Domestic
Subsidiary which is a Wholly-Owned Subsidiary.

 

“Waterparks Division” means the operating division of
Borrower and its Subsidiaries engaged in operating water parks.

 

21

 

“Wholly-Owned Subsidiary” means, with
respect to any Person, any Subsidiary of such Person of which all of the
Capital Stock (other than, in the case of a corporation, directors’ qualifying
shares, to the extent legally required) are directly or indirectly owned and
controlled by such Person or one or more Wholly-Owned Subsidiaries of such Person.

 

Section 1.2            Accounting Terms and Determinations.

 

Unless
otherwise specified herein, all accounting terms used herein shall be
interpreted, all accounting determinations hereunder (including without
limitation determinations made pursuant to the exhibits hereto) shall be made,
and all financial statements required to be delivered hereunder shall be
prepared on a consolidated basis in accordance with GAAP applied on a basis
consistent with the most recent audited consolidated financial statements of Holdings and its Consolidated
Subsidiaries delivered to Administrative Agent and Lenders.  If at any time any change in GAAP would
affect the computation of any financial ratio or financial requirement set
forth in any Financing Document, and either Borrower or Required Lenders shall
so request, Administrative Agent, Lenders and Borrower shall negotiate in good
faith to amend such ratio or requirement to preserve the original intent
thereof in light of such change in GAAP (subject to the approval of Required
Lenders); provided that, until so
amended, (i) such ratio or requirement shall continue to be computed in
accordance with GAAP prior to such change therein and (ii) Borrower shall
provide to Administrative Agent and Lenders financial statements and other
documents required under this Agreement which include a reconciliation between
calculations of such ratio or requirement made before and after giving effect
to such change in GAAP.

 

Section 1.3            Other Definitional Provisions and
References.

 

References in this
Agreement to “Articles”, “Sections”, “Annexes”, “Exhibits” or “Schedules” shall
be to Articles, Sections, Annexes, Exhibits or Schedules of or to this
Agreement unless otherwise specifically provided.  Any term defined herein may be used in the
singular or plural.  “Include”, “includes”
and “including” shall be deemed to be followed by “without limitation”.  Except as otherwise specified or limited
herein, references to any Person include the successors and assigns of such
Person.  References “from” or “through”
any date mean, unless otherwise specified, “from and including” or “through and
including”, respectively.  Unless
otherwise specified herein, the settlement of all payments and fundings
hereunder between or among the parties hereto shall be made in lawful money of
the United States and in immediately available funds.  Time is of the essence in Borrower’s and each
other Credit Party’s performance under this Agreement and all other Financing
Documents.  All amounts used for purposes
of financial calculations required to be made herein shall be without
duplication.  References to any statute
or act shall include all related current regulations and all amendments and any
successor statutes, acts and regulations. 
References to any statute or act, without additional reference, shall be
deemed to refer to federal statutes and acts of the United States.  References to any agreement, instrument or
document shall include all schedules, exhibits, annexes and other attachments
thereto.

 

22

 

ARTICLE 2.

LOANS AND LETTERS OF CREDIT

 

Section 2.1            Term Loan B.

 

On the terms
and subject to the conditions set forth herein, Lenders hereby agree to make a
term loan to Borrower on the Closing Date in an original principal amount equal
to $101,500,000 (“Term Loan B”).

 

Each Lender’s
obligation to fund Term Loan B shall be limited to such Lender’s Term Loan B
Commitment Percentage of Term Loan B, and no Lender shall have any obligation
to fund any portion of Term Loan B required to be funded by any other Lender,
but not so funded.  Borrower shall not
have any right to reborrow any portion of Term Loan B which is repaid or
prepaid from time to time.

 

Section 2.2            Scheduled Repayments.

 

There shall
become due and payable, and Borrower shall repay Term Loan B through, scheduled
payments on each date set forth below, each equal to the applicable installment
amount set forth below (or, if less, the outstanding amount of Term Loan B):

 

Term Loan  B

 

	
  Date

  	
   

  	
  Installment Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  June 30,
  2008

  	
   

  	
  $

  	
  253,750

  	
   

  
	
  September 30,
  2008

  	
   

  	
  $

  	
  253,750

  	
   

  
	
  December 31,
  2008

  	
   

  	
  $

  	
  253,750

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31,
  2009

  	
   

  	
  $

  	
  253,750

  	
   

  
	
  June 30,
  2009

  	
   

  	
  $

  	
  253,750

  	
   

  
	
  September 30,
  2009

  	
   

  	
  $

  	
  253,750

  	
   

  
	
  December 31,
  2009

  	
   

  	
  $

  	
  253,750

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31,
  2010

  	
   

  	
  $

  	
  253,750

  	
   

  
	
  June 30,
  2010

  	
   

  	
  $

  	
  253,750

  	
   

  
	
  September 30,
  2010

  	
   

  	
  $

  	
  253,750

  	
   

  
	
  December 31,
  2010

  	
   

  	
  $

  	
  253,750

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31,
  2011

  	
   

  	
  $

  	
  253,750

  	
   

  
	
  June 30,
  2011

  	
   

  	
  $

  	
  253,750

  	
   

  
	
  September 30,
  2011

  	
   

  	
  $

  	
  253,750

  	
   

  
	
  December 31,
  2011

  	
   

  	
  $

  	
  253,750

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31,
  2012

  	
   

  	
  $

  	
  253,750

  	
   

  
	
  June 30,
  2012

  	
   

  	
  $

  	
  253,750

  	
   

  
	
  September 30,
  2012

  	
   

  	
  $

  	
  253,750

  	
   

  
	
  December 31,
  2012

  	
   

  	
  $

  	
  253,750

  	
   

  

 

23

 

Term Loan  B

 

	
  Date

  	
   

  	
  Installment Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31,
  2013

  	
   

  	
  $

  	
  253,750

  	
   

  
	
  June 30,
  2013

  	
   

  	
  $

  	
  253,750

  	
   

  
	
  September 30,
  2013

  	
   

  	
  $

  	
  253,750

  	
   

  
	
  December 31,
  2013

  	
   

  	
  $

  	
  95,917,500

  	
   

  

 

Notwithstanding the payment
schedule set forth above, the outstanding principal amount of Term Loan B shall
become immediately due and payable on the Termination Date.

 

Section 2.3            Mandatory Prepayments.

 

There shall
become due and payable and Borrower shall prepay Term Loan B (and the Revolving
Loans and Swingline Loans, to the extent required by Section 2.5(a)) in
the following amounts and at the following times:

 

(a)           Excess
Cash Flow.  On the one hundred
twenty-fifth (125th) day following the last day of each Fiscal Year, beginning
with the Fiscal Year ending September 30, 2008, an amount equal to fifty
percent (50%) of Excess Cash Flow for such Fiscal Year (or, if shorter, for the
period from October 1, 2007 through the last day of such Fiscal Year);  provided that, during any Fiscal
Year in which the Total  Debt to EBITDA
Ratio (determined for such Fiscal Year by reference to the most recent
Compliance Certificate delivered pursuant to Section 4.1(b)) shall be less
than 3.00:1.0, Borrower shall make prepayment in an amount equal to 25% of
Excess Cash Flow for such Fiscal Year; provided,
further, that no prepayment shall be required under this clause (a) in
respect of any Fiscal Year for which Excess Cash Flow is less than $1,000,000; provided,
further, that if Excess Cash Flow for any Fiscal Year is greater than
$1,000,000 but less than $2,000,000, such prepayment shall be reduced (if
necessary) to an amount such that Unapplied Excess Cash Flow for such Fiscal
Year shall not be less than $1,000,000 after giving effect to such prepayment.

 

(b)           Casualty
and Other Insurance Proceeds.  On the
date on which any Credit Party (or Administrative Agent as loss payee or
assignee) receives any Major Casualty Proceeds, an amount equal to one hundred
percent (100%) of such Major Casualty Proceeds; provided, that, so long as no Default or Event of Default
has occurred and is continuing, the recipient (other than Administrative Agent)
of any Major Casualty Proceeds may reinvest the amount of such Major Casualty
Proceeds within three hundred sixty (360) days of the receipt thereof (or
within such longer period as may be agreed to in writing by Administrative
Agent in its sole discretion), in replacement assets comparable to the assets
giving rise to such Major Casualty Proceeds so long as (i) Borrower
notifies Administrative Agent of such recipient’s intent to reinvest at the
time such proceeds are received and (ii) such proceeds are paid to
Administrative Agent and (1) are applied by Administrative Agent against
the outstanding balance of the Revolving Loans (with a reserve in such amount
to be established against the Revolving Loan Commitment until such time as
Borrower reinvests such proceeds) and (2) at any time when the Revolving
Loan balance has been reduced to zero, are held by Administrative Agent in a
cash collateral account maintained (pursuant to documentation reasonably
satisfactory to 

 

24

 

Administrative
Agent) by Borrower with, and under the sole dominion and control of,
Administrative Agent (at the request of Borrower, amounts so deposited shall be
invested by Administrative Agent in Cash Equivalents and any earnings on such
Cash Equivalents will be for the account of Borrower) until such time as
Borrower reinvests such proceeds; provided,
further, that the aggregate amount which
may be reinvested by Borrower and its Subsidiaries pursuant to the preceding
proviso may not exceed $5,000,000 in any Fiscal Year; provided, further,
that if the applicable Credit Party does not intend to fully reinvest such
Major Casualty Proceeds, or if the time period set forth in this sentence
expires without such Credit Party having reinvested such Major Casualty
Proceeds, Borrower shall prepay the Loans in an amount equal to such Major
Casualty Proceeds (to the extent not reinvested or intended to be reinvested
within such time period);

 

(c)           Debt
and Equity Proceeds.  Upon receipt by
any Credit Party of the proceeds from the incurrence of Debt or issuance of any
Debt securities or Capital Stock (including for purposes hereof a contribution
of additional paid-in capital) (so long as no Change of Control would result
therefrom, other than (i) proceeds of Debt expressly permitted pursuant to
Section 5.1, (ii) proceeds of the issuance of Capital Stock received
on or before the Closing Date, (iii) proceeds from the issuance of Capital
Stock to members of the management of any Credit Party or, so long as no Event
of Default is then in existence, to any Person that on the Closing Date owns
Capital Stock of Parent,  (iv) proceeds
of the issuance of Capital Stock to Borrower or any Wholly-Owned Subsidiary and  (v) proceeds
of the issuance of Capital Stock concurrently used to finance the consummation
of a Permitted Acquisition), an amount equal to one hundred percent (100%) of
the Net Cash Proceeds of such incurrence or issuance;

 

(d)           Asset
Disposition Proceeds.  Upon receipt
by any Credit Party of the proceeds of any Asset Disposition, an amount equal
to one hundred percent (100%) of the Net Cash Proceeds of such Asset
Disposition; provided, that no
prepayment shall be required pursuant to this Section 2.3(d) (i) unless
and until the aggregate Net Cash Proceeds received during any Fiscal Year from Asset
Dispositions exceeds $5,000,000 (in which case all Net Cash Proceeds in excess
of such amount shall be used to make prepayments pursuant to this Section 2.3(d))
and (ii) in the case of an Asset Disposition of a Park, to the extent that
the Net Cash Proceeds received from such Asset Disposition exceed the Threshold
Amount (in which case, subject to clause (i) above, all Net Cash Proceeds
from such Asset Disposition up to the Threshold Amount shall be used to make
prepayments pursuant to this Section 2.3(d)), and provided, that, so long as no Default or
Event of Default has occurred and is continuing, the recipient of such Net Cash
Proceeds may reinvest the amount of such Net Cash Proceeds within three hundred
sixty (360) days of the receipt thereof (or within such longer period as may be
agreed to in writing by Administrative Agent in its sole discretion), in
replacement fixed assets of a kind then used or usable in the business of such
Credit Party (or to fund a Permitted Acquisition) so long as (i) Borrower
notifies Administrative Agent of its intent to reinvest at the time such
proceeds are received and (ii) such proceeds are paid to Administrative
Agent and (1) are applied by Administrative Agent against the outstanding
balance of the Revolving Loans (with a reserve in such amount to be established
against the Revolving Loan Commitment until such time as Borrower reinvests
such proceeds) and (2) at any time when the Revolving Loan balance has
been reduced to zero, are held by Administrative Agent in a cash collateral
account maintained (pursuant to documentation reasonably satisfactory to
Administrative Agent) by Borrower with, and under the sole dominion and control
of, Administrative Agent (at the request of Borrower, amounts so deposited
shall be invested by Administrative Agent in Cash

 

25

 

 Equivalents and any earnings on such Cash
Equivalents will be for the account of Borrower) until such time as Borrower
reinvests such proceeds.  If the
applicable Credit Party does not intend to so reinvest such Net Cash Proceeds,
or if the time period set forth in the immediately preceding sentence expires
without such Credit Party having reinvested such Net Cash Proceeds, Borrower
shall prepay the Loans in an amount equal to such Net Cash Proceeds; and

 

(e)           Extraordinary
Receipts.  Upon receipt by any Credit
Party of any Extraordinary Receipts, an amount equal to one hundred percent
(100%) of such Extraordinary Receipts.

 

Section 2.4            Optional Prepayments of Term Loan B.

 

Subject to the
provisions of Section 2.5(a) and Section 2.12(f)(iv), Borrower
may from time to time, with at least two (2) Business Days (or such
shorter period as may be agreed to by Administrative Agent in its sole
discretion) prior delivery to Administrative Agent of an appropriately
completed Payment Notification, prepay Term Loan B in whole or in part; provided that any such partial prepayment shall be in an
amount equal to $100,000  or a higher
integral multiple of $25,000.

 

Section 2.5            All Prepayments.

 

(a)           General
Provisions.  Any prepayment of a
LIBOR Loan on a day other than the last day of an Interest Period therefor
shall include interest on the principal amount being repaid and shall be
subject to Section 2.12(f)(iv).  All
prepayments of a Loan shall be applied first to that portion of such Loan
comprised of Base Rate Loans and then to that portion of such Loan comprised of
LIBOR Loans, in direct order of Interest Period maturities.  All prepayments of Term Loan B shall be
applied to the remaining installments thereof in inverse order of
maturity.  Following the payment in full
of Term Loan B, any remaining amounts required by Section 2.3 to be used
to prepay Term Loan  B shall
instead be applied first, as a repayment of the outstanding Revolving Loans and as a concurrent equivalent reduction of
the Revolving Loan Commitment,  pro
rata among all Revolving Lenders in accordance with the applicable Revolving
Loan Exposures and second, at any time the Revolving Loans have been repaid in
full, as a repayment of the outstanding Swingline Loans.

 

Section 2.6            Revolving Loans and Borrowings.

 

On the terms
and subject to the conditions set forth herein, each Lender severally agrees to
make Loans to Borrower from time to time as set forth herein (each a “Revolving Loan”, and collectively, “Revolving
Loans”) equal to such Lender’s Revolving Loan Commitment Percentage
of Revolving Loans requested by Borrower hereunder, provided that after giving
effect thereto, the Revolving Loan Outstandings shall not exceed the Revolving
Loan Limit.  Within the foregoing limits,
Borrower may borrow under this Section 2.6, may prepay or repay Revolving
Loans from time to time and may reborrow Revolving Loans pursuant to this Section 2.6.

 

26

 

Section 2.7            [Reserved]

 

Section 2.8            Advancing Revolving Loans.

 

(a)           Notice
of Borrowing.  Borrower shall deliver
to Administrative Agent a Notice of Borrowing with respect to each proposed
Revolving Loan Borrowing (other than Revolving Loans made pursuant to Section 2.8(b) below),
such Notice of Borrowing to be delivered no later than noon (Chicago time) (i) on the day of such proposed borrowing, in the case of
Base Rate Loans in an aggregate principal amount equal to or less than
$5,000,000, (ii) on the Business Day prior to such proposed borrowing, in
the case of Base Rate Loans in an aggregate principal amount greater than
$5,000,000 and (iii) on the third (3rd) Business Day prior to such
proposed borrowing, in the case of all LIBOR Loans.  Once given, except as provided in Section 2.12(f)(ii),
a Notice of Borrowing shall be irrevocable and Borrower shall be bound thereby.

 

(b)           Authority
on Notice. Borrower hereby authorizes Lenders and Administrative Agent to
make Revolving Loans (other than LIBOR Loans) based on telephonic notices made
by any Person which Administrative Agent, in good faith, believes to be acting
on behalf of Borrower.  Borrower agrees
to deliver to Administrative Agent a Notice of Borrowing in respect of each
Revolving Loan requested by telephone no later than one Business Day following
such request.  If the Notice of Borrowing
differs in any respect from the action taken by Administrative Agent and
Lenders, the records of Administrative Agent and Lenders shall govern absent
manifest error.  Borrower further hereby
authorizes Lenders and Administrative Agent to make Revolving Loans based on
electronic notices made by any Person which Administrative Agent, in good
faith, believes to be acting on behalf of Borrower, but only after
Administrative Agent shall have established procedures acceptable to
Administrative Agent for accepting electronic Notices of Borrowing, as
indicated by Administrative Agent’s written confirmation thereof.

 

(c)           Authority
to Advance Revolving Loans. Borrower and each Revolving Lender hereby
authorizes Administrative Agent to make Revolving Loans (which shall be Base
Rate Loans) on behalf of Revolving Lenders, at any time in its sole discretion,
(i) as provided in Section 2.11(b), with respect to obligations of
Revolving Lenders arising in respect of Swingline Loans, (ii) as provided
in Section 2.14(c), with respect to obligations arising under Support
Agreements and/or Lender Letters of Credit, and (iii) to pay principal
owing in respect of the Loans (excluding principal payments in respect of the
Term Loans, commencing one Business Day
following receipt by Administrative Agent of a written notice from any Lender,
in accordance with the provisions of Section 10.11, of the occurrence of
an Event of Default) and interest, fees, expenses and other charges payable by
any Credit Party from time to time under this Agreement or any other Financing
Document, so long as, in each case, after giving effect to any such Revolving
Loans pursuant to this clause (iii), the Revolving Loan Outstandings do not
exceed the Revolving Loan Limit; provided, that
Administrative Agent shall have no obligation at any time to make any Revolving
Loan pursuant to the provisions of the preceding clause (iii).  Administrative Agent shall have the right to
make Revolving Loans pursuant to the provisions of this clause Section 2.8(c) regardless
of whether the conditions precedent set forth in Section 7.2 are then
satisfied, including the existence of any Default or Event of Default either before
or after giving effect to the making of such Revolving Loans.

 

27

 

Section 2.9            Mandatory Revolving Loan Repayments and Prepayments.

 

(a)           Repayment
Upon Termination Date. The Revolving Loan Commitment shall terminate upon
the earlier to occur of (i) the Commitment Expiry Date and (ii) any
date on which Administrative Agent or Required Lenders elect to terminate the
Revolving Loan Commitment pursuant to Section 8.2 (such earlier date being
the “Termination Date”).  On the Termination Date, there shall become
due, and Borrower shall pay the entire outstanding principal amount of each
Revolving Loan and of each Swingline Loan, together with accrued and unpaid
Obligations pertaining thereto.

 

(b)           Repayment
of Overadvances.  If at any time the
Revolving Loan Outstandings exceed the Revolving Loan Limit, then, on the next
succeeding Business Day, Borrower shall repay the Revolving Loans and/or
Swingline Loans, cash collateralize Letter of Credit Liabilities in the manner
specified in Section 2.14(e) or cause the cancellation of outstanding
Letters of Credit, or any combination of the foregoing, in an aggregate amount
equal to such excess.

 

Section 2.10         Optional Prepayments of Revolving Loans.

 

Subject to the
provisions of Section 2.12(f)(iv), Borrower may from time to time prepay
the Revolving Loans and/or Swingline Loans in whole or in part (without
reduction of the Revolving Loan Commitment); provided
that any such partial prepayment shall be in an amount equal to $100,000 or a
higher integral multiple of $25,000.

 

Section 2.11         Swingline Loans.

 

(a)           Advances
of Swingline Loans.  Swingline Lender
may, from time to time,  at its
sole election and without prior notice to or consent by any Lender or Borrower,
convert any request or deemed request by Borrower for a Revolving Loan that is
a Base Rate Loan into a request for an advance made by, and for the account of,
Swingline Lender in accordance with the terms of this Agreement (each such
advance, a “Swingline Loan”).  Each Swingline Loan shall be a Base Rate
Loan, and shall be advanced by Swingline Lender in the same manner as Revolving
Loans are advanced hereunder, in accordance with the provisions of Section 2.8(b).  Swingline Lender shall have the right (but
not the obligation) to advance Swingline Loans regardless of whether the
conditions precedent set forth in Section 7.2 are then satisfied,
including the existence of any Default or Event of Default either before or
after giving effect to the making of such Swingline Loan;  provided, that Swingline Lender
shall not advance any Swingline Loan if, to the knowledge of Swingline Lender,
the Swingline Loan Outstandings exceed the Swingline Loan Limit, either before
or after giving effect to the making of any proposed Swingline Loan.  If at any time the Swingline Loan
Outstandings exceed the Swingline Loan Limit, then, on the next succeeding
Business Day, Borrower shall repay Revolving Loans and/or Swingline Loans, cash
collateralize Letter of Credit Liabilities in the manner specified in Section 2.14(e) or
cause the cancellation of outstanding Letters of Credit, or any combination of
the foregoing, in an aggregate amount equal to such excess.

 

(b)           Settlement
of Swingline Loans. Swingline Lender shall give Administrative Agent prompt
notice of each Swingline Loan advanced by Swingline Lender.  In the event that on any Business Day
Swingline Lender desires that all or any portion of the

 

28

 

outstanding
Swingline Loans should be reduced, in whole or in part, Swingline Lender shall
notify Administrative Agent to that effect and indicate the portion of the
Swingline Loan to be so reduced.  Swingline Lender hereby agrees that it shall
notify Administrative Agent to reduce the Swingline Loan to zero at least once
every month.  Administrative Agent
agrees to transmit to Revolving Lenders the information contained in each
notice received by Administrative Agent from Swingline Lender regarding the
reduction of outstanding Swingline Loans and shall concurrently notify such
Lenders of each such Lender’s Pro Rata Share of the obligation to make a
Revolving Loan to repay outstanding Swingline Loans (or the applicable portion
thereof).  Each Revolving Lender hereby
unconditionally and irrevocably agrees to fund to the Payment Account, for the
benefit of Swingline Lender, not later than noon (Chicago time) on the Business
Day immediately following the Business Day of such Lender’s receipt of such
notice from Administrative Agent (provided
that if any Revolving Lender shall receive such notice at or prior to 10:00 a.m.
(Chicago time) on a Business Day, such funding shall be made by such Lender on
such Business Day), such Lender’s Pro Rata Share of a Revolving Loan (which
Revolving Loan shall be a Base Rate Loan and shall be deemed to be requested by
Borrower) in the principal amount equal to the portion of the Swingline Loan
which is required to be paid to Swingline Lender under this Section 2.11.  The proceeds of any such Revolving Loans so
funded shall be immediately paid over to Administrative Agent for the benefit
of Swingline Lender for application against then outstanding Swingline
Loans.  For purposes of this Section 2.11(b) Swingline
Lender shall be conclusively entitled to assume that, at the time of the
advance of any Swingline Loan, each Revolving Lender will fund its Pro Rata
Share of the Revolving Loans provided for in this Section 2.11(b).

 

(c)           Participations
in Swingline Loans.  In the event
that, at any time any Swingline Loans are outstanding, either (i) an Event
of Default pursuant to Section 8.1(f) or 8.1(g) has occurred or (ii) the
Revolving Loan Commitment has been suspended or terminated in accordance with
the provisions of this Agreement, then in either case, each Revolving Lender
(other than Swingline Lender) shall be deemed to have irrevocably and
immediately purchased and received from Swingline Lender, without recourse or
warranty, an undivided interest and participation in the Swingline Loans in an
aggregate amount equal to such Lender’s Pro Rata Share of each Swingline Loan
outstanding.  Any purchase obligation
arising pursuant to the immediately preceding sentence shall be absolute and
unconditional and shall not be affected by any circumstances whatsoever.  In the event that on any Business Day
Swingline Lender desires to effect settlement of any such purchase, Swingline
Lender shall promptly notify Administrative Agent to that effect and indicate
the payment amounts required by each Lender to effect such settlement.  Administrative Agent agrees to transmit to
Revolving Lenders the information contained in each notice received by
Administrative Agent from Swingline Lender and shall concurrently notify such
Lenders of each such Lender’s Pro Rata Share of the required payment settlement
amount.  Each such Lender shall effect
such settlement upon receipt of any such notice by transferring to the Payment
Account not later than noon (Chicago time) on the Business Day immediately
following the Business Day of receipt of such notice (provided that if any such Lender shall
receive such notice at or prior to 10:00 a.m. (Chicago time) on a Business
Day, such funding shall be made by such Lender on such Business Day), an amount
equal to such Lender’s participation in the Swingline Loan.

 

(d)           Failure
to Settle.  In the event any
Revolving Lender fails to make available to Administrative Agent when due the
amount of such Lender’s participation in the Swingline Loans, Swingline Lender
shall be entitled to recover such amount on demand from

 

29

 

such
Lender together with interest at the Federal Funds Rate, for the first three (3) days
following the due date, and thereafter at the Base Rate plus the Base Rate
Margin in respect of Swingline Loans.  Any
Lender’s failure to make any payment requested under this Section 2.11
shall not relieve any other Lender of its obligations hereunder, but no Lender
shall be responsible for the failure of any other Lender to make available to
Administrative Agent such other Lender’s required payment hereunder.  The obligations of Lenders under this Section 2.11
shall be deemed to be binding upon Administrative Agent, Swingline Lender and
Lenders notwithstanding the occurrence of any Default or Event of Default, or
any insolvency or bankruptcy proceeding pertaining to Borrower or any other
Credit Party.

 

Section 2.12         Interest, Interest Calculations and
Certain Fees.

 

(a)           Interest.  From and following
the Closing Date, depending upon Borrower’s election from time to time, subject
to the terms hereof, to have portions of the Loans accrue interest determined
by reference to the Base Rate or the LIBOR, the Loans and the other Obligations
shall bear interest at the applicable rates set forth below:

 

(i)            If
a Base Rate Loan, or any other Obligation other than a LIBOR Loan, then at the
sum of the Base Rate plus the applicable Base Rate Margin.

 

(ii)           If
a LIBOR Loan, then at the sum of the LIBOR plus the applicable LIBOR
Margin.

 

(b)           Unused
Line Fee.  From and following the
Closing Date, Borrower shall pay Administrative Agent, for the benefit of all
Lenders committed to make Revolving Loans, in accordance with their respective
Pro Rata Shares, a fee in an amount equal to (i) the Revolving Loan
Commitment less the average daily balance of the sum of the Revolving
Loan Outstandings plus the Swingline Loan Outstandings during the
preceding month, multiplied  by (ii) one-half of one percent
(0.50%) per annum.  Such fee is to be
paid monthly in arrears on the last day of each month.

 

(c)           Agent’s
Fees and Certain Other Fees. 
Borrower shall pay to Administrative Agent fees in such amounts and at
such times as set forth in the Fee Letter. 
If the Revolving Loan Commitment Amount and/or Term Loan B is increased
within one hundred eighty (180) days following the Closing Date in connection
with the consummation of a Permitted Acquisition requiring the approval of
Required Lenders in accordance with Section 5.8(b), then any fees payable
to the Lenders on their existing Revolving Commitment Amounts and their
existing Pro Rata Shares of Term Loan B (in each case prior to giving effect to
any such increase) in connection therewith shall be limited to one-quarter of
one percent (0.25%) of the aggregate amount of such existing Revolving
Commitment Amounts and Pro Rata Shares.

 

(d)           [Reserved].

 

(e)           Computation
of Interest and Related Fees.  All
interest and fees under each Financing Document shall be calculated on the
basis of a 360-day year for the actual number of days elapsed; provided that
interest on Base Rate Loans shall be calculated on the basis of a 365-366-day
year for the actual number of days elapsed. 
The date of funding of a Base Rate Loan and the first day of an Interest
Period with respect to a LIBOR Loan shall be included

 

30

 

in
the calculation of interest.  The date of
payment of a Base Rate Loan and the last day of an Interest Period with respect
to a LIBOR Loan shall be excluded from the calculation of interest.  If a Loan is repaid on the same day that it
is made, one (1) day’s interest shall be charged.  Interest on all Base Rate Loans is payable in
arrears on the last day of each calendar month and on the maturity of such Loans, whether by acceleration
or otherwise.  Interest on LIBOR Loans
shall be payable on the last day of the applicable Interest Period, unless the
Interest Period is greater than three (3) months, in which case interest
will be payable on the last day of each three (3) month interval.  In addition, interest on LIBOR Loans is due
on the maturity of such Loans, whether by acceleration or otherwise.

 

(f)            LIBOR Provisions.

 

(i)            LIBOR
Election.  All Loans made on the
Closing Date shall be Base Rate Loans and shall remain so until three (3) Business
Days after the Closing Date.  Thereafter, subject to the provisions of Section 8.4,
Borrower may request that Revolving Loans permitted to be made hereunder be
LIBOR Loans, that outstanding portions of Revolving Loans permitted to be made
hereunder and outstanding portions of each Term Loan be converted to LIBOR
Loans and that all or any portion of a LIBOR Loan be continued as a LIBOR Loan
upon expiration of the applicable Interest Period; provided that until the
earlier of ninety (90) days after the Closing Date and the completion of a
Successful Syndication (as defined in the Fee Letter), Borrower may not request
any LIBOR Loan with an Interest Period exceeding one (1) Business
Day.  Any such request will be made by
submitting a Notice of Borrowing to Administrative Agent.  Once given, and except as provided in clause (ii) below,
a Notice of Borrowing shall be irrevocable and Borrower shall be bound
thereby.  Upon the expiration of an
Interest Period, in the absence of a new Notice of Borrowing submitted to
Administrative Agent not less than three (3) Business Days prior to the
end of such Interest Period, the LIBOR Loan then maturing shall be
automatically converted to a Base Rate Loan. 
There may be no more than ten (10) LIBOR Loans outstanding at any
one time.  Each request for a LIBOR Loan,
whether by original issuance, conversion or continuation, shall be in a minimum
amount of $1,000,000 and, if in excess of such amount, in an integral multiple
of $100,000 in excess of such amount.  Loans which are not requested as LIBOR Loans
in accordance with this Section 2.12(f)(i) shall be Base Rate
Loans.  Administrative Agent shall notify
Lenders, by telephonic or facsimile notice, of each Notice of Borrowing
received by Administrative Agent not less than two (2) Business Days prior
to the first day of the Interest Period of the LIBOR Loan requested thereby.

 

(ii)           Inability
to Determine LIBOR.  In the event, prior to commencement of any
Interest Period relating to a LIBOR Loan, Administrative Agent shall determine
or be notified by Required Lenders that adequate and reasonable methods do not
exist for ascertaining LIBOR, Administrative Agent shall promptly provide
notice of such determination to Borrower and Lenders (which shall be conclusive
and binding on Borrower and Lenders).  In
such event (A) any request for a LIBOR Loan or for a conversion to or
continuation of a LIBOR Loan shall be automatically withdrawn and shall be
deemed a request for a Base Rate Loan, (B) each LIBOR Loan will
automatically, on the last day of the then current Interest Period relating
thereto, become a Base Rate Loan and (C) the obligations of Lenders to
make LIBOR Loans shall be suspended until Administrative Agent or Required
Lenders determine that the circumstances giving rise to such suspension no
longer exist, in which event Administrative Agent shall so notify Borrower and
Lenders.

 

31

 

(iii)          Illegality.  Notwithstanding any other provisions hereof,
if any Law shall make it unlawful for any Lender to make, fund or maintain
LIBOR Loans, such Lender shall promptly give notice of such circumstances to
Administrative Agent, Borrower and the other Lenders.  In such an event, (A) the commitment of
such Lender to make LIBOR Loans, continue LIBOR Loans as LIBOR Loans or convert
Base Rate Loans to LIBOR Loans shall be immediately suspended and (B) such
Lender’s outstanding LIBOR Loans shall be converted automatically to Base Rate
Loans on the last day of the Interest Period thereof or at such earlier time as
may be required by Law.

 

(iv)          LIBOR
Breakage Fee.  Upon (A) any
default by Borrower in making any borrowing of, conversion into or continuation
of any LIBOR Loan following Borrower’s delivery to Administrative Agent of any
applicable Notice of Borrowing or (B) any payment of a LIBOR Loan on any
day that is not the last day of the Interest Period applicable thereto
(regardless of the source of such prepayment and whether voluntary, by
acceleration or otherwise), Borrower shall promptly pay Administrative Agent,
for the benefit of all Lenders that funded or were prepared to fund any such
LIBOR Loan, an amount equal to the amount of any losses, expenses and
liabilities (including, without limitation, any loss (including interest paid)
in connection with the re-employment of such funds) that any Lender may sustain
as a result of such default or such payment. 
For purposes of calculating amounts payable to a Lender under this
paragraph, each Lender shall be deemed to have actually funded its relevant
LIBOR Loan through the purchase of a deposit bearing interest at LIBOR in an
amount equal to the amount of that LIBOR Loan and having a maturity and
repricing characteristics comparable to the relevant Interest Period; provided, however,
that each Lender may fund each of its LIBOR Loans in any manner it sees fit,
and the foregoing assumption shall be utilized only for the calculation of
amounts payable under this subsection.

 

(v)           Increased
Costs.  If, after the Closing Date,
the adoption or taking effect of, or any change in, any Law, or any change in
the interpretation, administration or application of any Law by any
Governmental Authority, central bank or comparable agency charged with the
interpretation, administration or application thereof, or compliance by any
Lender with any request, guideline or directive (whether or not having the
force of Law) of any such authority, central bank or comparable agency:  (A) shall impose, modify or deem
applicable any reserve (including any reserve imposed by the Board of Governors
of the Federal Reserve System, or any successor thereto, but excluding any
reserve included in the determination of the LIBOR pursuant to the provisions
of this Agreement), special deposit, compulsory loan, insurance charge or
similar requirement against assets of, deposits with or for the account of, or
credit extended or participated in by any Lender, or (B) shall impose on
any Lender any other condition affecting its LIBOR Loans, any of its Notes (if
any) or its obligation to make LIBOR Loans; and the result of anything
described in clauses (A) and (B) above is to increase the cost to (or
to impose a cost on) such Lender of making or maintaining any LIBOR Loan, or to
reduce the amount of any sum received or receivable by such Lender under this
Agreement or under any of its Notes (if any) with respect thereto, then upon
demand by such Lender (which demand shall be accompanied by a statement setting
forth the basis for such demand and a calculation of the amount thereof in
reasonable detail, a copy of which shall be furnished to Administrative Agent),
Borrower shall promptly pay directly to such Lender such additional amount as
will compensate such Lender for such increased cost or such reduction, so long
as such amounts have accrued on or after the day which is two hundred seventy
(270) days prior to the date on which such Lender first made demand therefor.

 

32

 

Section 2.13         Notes.

 

The portion of
Term Loan B made by each Lender shall be evidenced, if so requested by
such Lender, by a promissory note executed by Borrower (a “Term Note B”)
and the portion of the Revolving Loans made by each Lender shall be evidenced,
if so requested by such Lender, by a promissory note executed by Borrower (a “Revolving Loan Note”) in an original principal amount equal
to such Lender’s Pro Rata Share of Term Loan B and the Revolving Loan
Commitment, respectively.  The Swingline
Loans made by Swingline Lender shall be evidenced, if so requested by Swingline
Lender, by a promissory note executed by Borrower (a “Swingline Loan Note”) in an original
principal amount equal to the amount identified in clause (i) of the
definition of Swingline Loan Limit.

 

Section 2.14         Letters of Credit and Letter of
Credit Fees.

 

(a)           Letter of Credit.  On the terms
and subject to the conditions set forth herein, the Revolving Loan Commitment
may be used by Borrower, in addition to the making of Revolving Loans
hereunder, for the issuance, prior to the Termination Date, by Administrative
Agent, of letters of credit, guarantees or other agreements or arrangements
(each, together with any letter of credit issued by Administrative Agent in
favor of GE Capital with respect to the Existing Letters of Credit, a “Support Agreement”) to induce an LC Issuer to issue or
increase the amount of, or extend the expiry date of, one or more Letters of
Credit and by a Lender, identified by Administrative Agent, as an LC Issuer,
of one or more Lender Letters of Credit, so long as, in each case:

 

(i)            Administrative
Agent shall have received a Notice of LC Credit Event at least two (2) Business
Days before the relevant date of issuance, increase or extension; and

 

(ii)           after
giving effect to such issuance, increase or extension, (A) the aggregate
Letter of Credit Liabilities does not exceed $15,000,000 and (B) the
Revolving Loan Outstandings do not exceed the Revolving Loan Limit.

 

Nothing in
this Agreement shall be construed to obligate any Lender to issue, increase the
amount of or extend the expiry date of any letter of credit, which act or acts,
if any, shall be subject to agreements to be entered into from time to time
between Borrower and such Lender.  Each
Lender that is an LC Issuer hereby agrees to give Administrative Agent prompt
written notice of each issuance of a Lender Letter of Credit by such Lender and
each payment made by such Lender in respect of Lender Letters of Credit issued
by such Lender.

 

(b)           Letter of Credit Fee.  Borrower shall pay to
Administrative Agent, for the benefit of Revolving Lenders, a letter of credit
fee with respect to the Letter of Credit Liabilities for each Letter of Credit,
computed for each day from the date of issuance of such Letter of Credit to the
date that is the last day a drawing is available under such Letter of Credit,
at a rate per annum equal to the LIBOR Margin then applicable to Revolving
Loans.  Such fee shall be payable in
arrears on the last day of each
calendar month prior to the Termination Date and on such date.  In addition, Borrower agrees to pay promptly
to LC Issuer any fronting or other fees that it may charge in connection with
any Letter of Credit.

 

33

 

(c)           Reimbursement Obligations of Borrower. 
If the Administrative Agent shall make a payment to an LC Issuer (or, in
the case of the Existing Letters of Credit, to GE Capital) pursuant to a
Support Agreement, or any Lender shall notify Administrative Agent that it has
made payment in respect of a Lender Letter of Credit, (i) Borrower shall
promptly reimburse Administrative Agent or such Lender, as applicable, for the
amount of such payment and (ii) Borrower shall be deemed to have
immediately requested that Revolving Lenders make a Revolving Loan, which shall
be a Base Rate Loan, in a principal amount equal to the amount of such payment
(but solely to the extent Borrower shall have failed to directly reimburse
Administrative Agent or, with respect to Lender Letters of Credit, the
applicable LC Issuer, for the amount of such payment).  Administrative Agent shall promptly notify
Revolving Lenders of any such deemed request and each Revolving Lender hereby
agrees to make available to Administrative Agent not later than noon (Chicago
time) on the Business Day following such notification from Administrative Agent
such Revolving Lender’s Pro Rata Share of such Revolving Loan.  Each Revolving Lender hereby absolutely and
unconditionally agrees to fund such Revolving Lender’s Pro Rata Share of the
Loan described in the immediately preceding sentence, unaffected by any
circumstance whatsoever, including (without limitation) (A) the occurrence
and continuance of a Default or Event of Default, (B) the fact that,
whether before or after giving effect to the making of any such Revolving Loan,
the Revolving Loan Outstandings exceed or will exceed the Revolving Loan Limit
and/or (C) the non-satisfaction of any conditions set forth in Section 8.2.  Administrative Agent hereby agrees to apply
the gross proceeds of each Revolving Loan deemed made pursuant to this Section 2.14(c) in
satisfaction of Borrower’s reimbursement obligations arising pursuant to this Section 2.14(c).  Borrower shall pay interest, on demand, on
all amounts so paid by Administrative Agent for each day until Borrower
reimburses Administrative Agent therefor at a rate per annum equal to the then
current interest rate applicable to Revolving Loans (which are Base Rate Loans)
for such day.

 

(d)           Reimbursement and Other Payments by Borrower. 
The obligations of Borrower to reimburse Administrative Agent and/or the
applicable LC Issuer pursuant to Section 2.14(c) shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement, under all circumstances whatsoever, including
the following:

 

(i)            any
lack of validity or enforceability of, or any amendment or waiver of or any
consent to departure from, any Letter of Credit or any related document;

 

(ii)           the
existence of any claim, set-off, defense or other right which Borrower may have
at any time against the beneficiary of any Letter of Credit, LC Issuer
(including any claim for improper payment), Administrative Agent, any Lender or
any other Person, whether in connection with any Financing Document or any
unrelated transaction, provided that
nothing herein shall prevent the assertion of any such claim by separate suit
or compulsory counterclaim;

 

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

 

(iv)          any
affiliation between LC Issuer and Administrative Agent; or

 

34

 

(v)           to the extent permitted under applicable Law, any
other circumstance or happening whatsoever, whether or not similar to any of
the foregoing.

 

(e)           Deposit Obligations of Borrower. 
In the event any Letters of Credit are outstanding at the time that
Borrower prepays or is required to repay the Obligations or the Revolving Loan
Commitment is terminated, Borrower shall (i) deposit with Administrative
Agent for the benefit of all Revolving Lenders cash in an amount equal to one
hundred five percent (105%) of the aggregate outstanding Letter of Credit
Liabilities to be available to Administrative Agent, for its benefit and the
benefit of issuers of Lender Letters of Credit, to reimburse payments of drafts
drawn under such Letters of Credit and pay any fees and expenses related
thereto and (ii) prepay the fee payable under Section 2.14(b) with
respect to such Letters of Credit for the full remaining terms of such Letters
of Credit.  Upon termination of any such
Letter of Credit and provided no Event of Default then exists, the unearned
portion of such prepaid fee attributable to such Letter of Credit shall be
refunded to Borrower, together with the deposit described in the preceding
clause (i) attributable to such Letter of Credit, but only to the extent
not previously applied by Administrative Agent in the manner described herein.

 

(f)            Participations in Support Agreements and Lender
Letters of Credit.

 

(i)            Concurrently with the issuance of each Supported
Letter of Credit, Administrative Agent shall be deemed to have sold and
transferred to each Revolving Lender, and each such Revolving Lender shall be
deemed irrevocably and immediately to have purchased and received from
Administrative Agent, without recourse or warranty, an undivided interest and
participation in, to the extent of such Lender’s Pro Rata Share, Administrative
Agent’s Support Agreement liabilities and obligations in respect of such
Letters of Credit and Borrower’s Reimbursement Obligations with respect
thereto.  Concurrently with the issuance
of each Lender Letter of Credit, the LC Issuer in respect thereof shall be
deemed to have sold and transferred to each Revolving Lender, and each such
Revolving Lender shall be deemed irrevocably and immediately to have purchased
and received from such LC Issuer, without recourse or warranty, an undivided
interest and participation in, to the extent of such Lender’s Pro Rata Share,
such Lender Letter of Credit and Borrower’s Reimbursement Obligations with
respect thereto.  Any purchase obligation
arising pursuant to the immediately two preceding sentences shall be absolute
and unconditional and shall not be affected by any circumstances whatsoever.

 

(ii)           If either (A) (1) Administrative Agent makes
any payment or disbursement under any Support Agreement and/or (2) an LC
Issuer makes any payment or disbursement under any Lender Letter of Credit, and
Borrower has not reimbursed Administrative Agent or, as applicable, the
applicable LC Issuer with respect to any Lender Letter of Credit in full for
such payment or disbursement in accordance with Section 2.14(c), or (B) any
reimbursement received by Administrative Agent or any LC Issuer from any Credit
Party is or must be returned or rescinded upon or during any bankruptcy or
reorganization of any Credit Party or otherwise, each Revolving Lender shall be
irrevocably and unconditionally obligated to pay to Administrative Agent, or
the applicable LC Issuer, as applicable, its Pro Rata Share of such payment or
disbursement (but no such payment shall diminish the Obligations of Borrower
under Section 2.14(c)).  To the
extent any such Revolving Lender shall not have made such amount available to
Administrative Agent, or the applicable LC Issuer, as applicable, by noon
(Chicago time) on the Business Day on which such Lender receives notice from

 

35

 

Administrative
Agent, or the applicable LC Issuer, as applicable, of such payment or
disbursement, such Lender agrees to pay interest on such amount to Administrative
Agent, or the applicable LC Issuer, as applicable, forthwith on demand accruing
daily at the Federal Funds Rate, for the first three (3) days following
such Lender’s receipt of such notice, and thereafter at the Base Rate plus the
Base Rate Margin in respect of Revolving Loans. 
Any such Revolving Lender’s failure to make available to Administrative
Agent or the applicable LC Issuer, as applicable, its Pro Rata Share of any
such payment or disbursement shall not relieve any other Lender of its
obligation hereunder to make available such other Revolving Lender’s Pro Rata
Share of such payment, but no Revolving Lender shall be responsible for the
failure of any other Lender to make available such other Lender’s Pro Rata
Share of any such payment or disbursement.

 

Section 2.15         General Provisions Regarding Payment.

 

All payments
to be made by Borrower under any Financing Document, including payments of
principal and interest made hereunder and pursuant to any other Financing
Document, and all fees, expenses, indemnities and reimbursements, shall be made
without set-off or counterclaim.  If any
payment hereunder becomes due and payable on a day other than a Business Day,
such payment shall be extended to the next succeeding Business Day and, with
respect to payments of principal, interest thereon shall be payable at the then
applicable rate during such extension (it being understood and agreed that,
solely for purposes of calculating financial covenants and computations
contained herein and determining compliance therewith, if payment is made, in
full, on any such extended due date, such payment shall be deemed to have been
paid on the original due date without giving effect to any extension
thereto).  Any payments received in the
Payment Account before noon (Chicago time) on any date shall be deemed received
by Administrative Agent on such date, and any payments received in the Payment
Account after noon (Chicago time) on any date shall be deemed received by
Administrative Agent on the next succeeding Business Day.  In the absence of receipt by Administrative
Agent of an appropriately completed Payment Notification at least two (2) Business
Days prior to such prepayment, Borrower and each Lender hereby authorize and
direct Administrative Agent, subject to the provisions of Section 8.6
hereof, to apply such prepayment against then outstanding Revolving Loans, and
second, if no Revolving Loans are then outstanding, pro rata against all
outstanding Term Loans in accordance
with the provisions of Section 2.5; provided,
that (i) if Administrative Agent receives an appropriately completed
Payment Notification within two (2) Business Days after making any such
payment, Administrative Agent may (and shall be fully authorized by Borrower
and each Lender) to apply such amounts received in accordance with the terms of
such Payment Notification and to make any corresponding Loan Account reversals
in respect thereof and (ii) if Administrative Agent at any time determines
that payments received by Administrative Agent were in respect of a mandatory
prepayment event, Administrative Agent shall apply such payments in accordance
with the provisions of Section 2.5, and shall be fully authorized by
Borrower and each Lender to make any corresponding Loan Account reversals in
respect thereof.

 

Section 2.16         Loan Account.

 

Administrative
Agent shall maintain a loan account (the “Loan Account”)
on its books to record Loans and other extensions of credit made by Lenders
hereunder or under any other Financing Document, and all payments thereon made
by Borrower.  All entries in the Loan

 

36

 

Account shall
be made in accordance with Administrative Agent’s customary accounting
practices as in effect from time to time. 
The balance in the Loan Account, as recorded on Administrative Agent’s
most recent printout or other written statement, shall be conclusive and
binding evidence of the amounts due and owing to Administrative Agent by
Borrower absent clear and convincing evidence to the contrary; provided that any failure to so
record or any error in so recording shall not limit or otherwise affect
Borrower’s duty to pay all amounts owing hereunder or under any other Financing
Document.  Unless Borrower notifies
Administrative Agent of any objection to any such printout or statement
(specifically describing the basis for such objection) within thirty (30) days
after the date of receipt thereof, it shall be deemed final, binding and
conclusive upon Borrower in all respects as to all matters reflected therein.

 

Section 2.17         Maximum Interest.

 

(a)           Applicable Limit.  In no event
shall the interest charged with respect to the Notes (if any) or any other
obligations of Borrower under any Financing Document exceed the maximum amount
permitted under the laws of the State of New York or of any other applicable jurisdiction.

 

(b)           Maximum Lawful Rate. 
Notwithstanding anything to the contrary herein or elsewhere, if at any
time the rate of interest payable hereunder or under any Note or other
Financing Document (the “Stated Rate”)
would exceed the highest rate of interest permitted under any applicable Law to
be charged (the “Maximum Lawful Rate”), then for so
long as the Maximum Lawful Rate would be so exceeded, the rate of interest
payable shall be equal to the Maximum Lawful Rate; provided, that
if at any time thereafter the Stated Rate is less than the Maximum Lawful Rate,
Borrower shall, to the extent permitted by Law, continue to pay interest at the
Maximum Lawful Rate until such time as the total interest received is equal to
the total interest which would have been received had the Stated Rate been (but
for the operation of this provision) the interest rate payable.  Thereafter, the interest rate payable shall
be the Stated Rate unless and until the Stated Rate again would exceed the
Maximum Lawful Rate, in which event this provision shall again apply.

 

(c)           Application of Excess Interest. 
In no event shall the total interest received by any Lender exceed the
amount which it could lawfully have received had the interest been calculated
for the full term hereof at the Maximum Lawful Rate. If, notwithstanding the
prior sentence, any Lender has received interest hereunder in excess of the
Maximum Lawful Rate, such excess amount shall be applied to the reduction of
the principal balance of the Loans or to other amounts (other than interest)
payable hereunder, and if no such principal or other amounts are then
outstanding, such excess or part thereof remaining shall be paid to
Borrower.  In computing interest payable
with reference to the Maximum Lawful Rate applicable to any Lender, such
interest shall be calculated at a daily rate equal to the Maximum Lawful Rate
divided by the number of days in the year in which such calculation is made.

 

Section 2.18         Taxes.

 

(a)           Gross Up for Taxes.  All payments
of principal and interest on the Loans and all other amounts payable hereunder
shall be made free and clear of and without deduction for any present or future
income, excise, stamp, documentary, property or franchise taxes and other
taxes, fees, duties, levies, assessments, withholdings or other charges of any
nature

 

37

 

whatsoever
(including interest and penalties thereon) imposed by any taxing authority,
excluding taxes imposed on or measured by Administrative Agent’s or any Lender’s
net income by the jurisdiction under which Administrative Agent or such Lender
is organized or conducts business (other than solely as the result of entering
into any of the Financing Documents or taking any action thereunder) (all
non-excluded items being called “Taxes”).  If any withholding or deduction from any
payment to be made by Borrower hereunder is required in respect of any Taxes
pursuant to any applicable Law, then Borrower will  (i) pay directly to the relevant
authority the full amount required to be so withheld or deducted, (ii) promptly
forward to Administrative Agent an official receipt or other documentation
satisfactory to Administrative Agent evidencing such payment to such authority,
and (iii) pay to Administrative Agent for the account of Administrative
Agent and Lenders such additional amount or amounts as is necessary to ensure
that the net amount actually received by Administrative Agent and each Lender
will equal the full amount Administrative Agent and such Lender would have
received had no such withholding or deduction been required.  If any Taxes are directly asserted against
Administrative Agent or any Lender with respect to any payment received by
Administrative Agent or such Lender hereunder, Administrative Agent or such
Lender may pay such Taxes and Borrower will promptly pay such additional
amounts (including any penalty, interest or expense) as is necessary in order
that the net amount received by such Person after the payment of such Taxes
(including any Taxes on such additional amount) shall equal the amount such
Person would have received had such Taxes not been asserted so long as such
amounts have accrued on or after the day which is two hundred seventy (270)
days prior to the date on which Administrative Agent or such Lender first made
demand therefor.

 

(b)           Interest
and Penalties.  If Borrower fails to
pay any Taxes when due to the appropriate taxing authority or fails to remit to
Administrative Agent, for the account of Administrative Agent and the
respective Lenders, the required receipts or other required documentary
evidence, Borrower shall indemnify Administrative Agent and Lenders for any
incremental Taxes, interest or penalties that may become payable by Administrative
Agent or any Lender as a result of any such failure.

 

(c)           Foreign
Lenders.  Each Lender that is
organized under the laws of a jurisdiction other than the United States and is
a party hereto on the Closing Date or purports to become an assignee of an interest
pursuant to Section 11.6(a) after the Closing Date (unless such
Lender was already a Lender hereunder immediately prior to such assignment)
(each such Lender a “Foreign Lender”)
shall execute and deliver to each of Borrower and Administrative Agent (as
Borrower or Administrative Agent may reasonably request) one or more United
States Internal Revenue Service Forms W-8ECI, W-8BEN, W-8IMY (as applicable)
and other applicable forms, certificates or documents prescribed by the United
States Internal Revenue Service or reasonably requested by Administrative Agent
certifying as to such Lender’s entitlement to a complete exemption from
withholding or deduction of Taxes.  In
the event that Administrative Agent or Borrower received an applicable Internal
Revenue Service form, certificate or document from a Foreign Lender in
connection with a prior transaction, Administrative Agent and Borrower shall be
entitled to rely on the statements of such Foreign Lender set forth in such
form, certificate or document until such Foreign Lender delivers to
Administrative Agent or Borrower a new form, certificate or document in
connection with the transactions contemplated by this Agreement.  Borrower shall not be required to pay additional
amounts to any Lender pursuant to this Section 2.18 with respect to United
States withholding and income Taxes to the extent that the obligation to pay
such additional amounts would not

 

38

 

have
arisen but for the failure of such Lender to comply with this paragraph other
than as a result of a change in Law.

 

(d)           If
the Administrative Agent or a Lender determines, in its sole discretion, that
it has received a refund of Taxes (i) previously paid by it and as to
which it has been indemnified or (ii) previously paid by the Borrower as
additional amounts pursuant to this Section 2.18, the Administrative Agent
or the Lender, as the case may be, shall pay to the Borrower an amount equal to
such refund (but only to the extent of indemnity payments made, or additional
amounts paid, by or on behalf of the Borrower under this Section 2.18 with
respect to Taxes giving rise to such refund), net of all out-of-pocket expenses
of the Administrative Agent or such Lender, as the case may be, and without
interest (other than any interest paid by the relevant Governmental Authority
with respect to such refund), provided, however, that the Borrower, upon the
request of the Administrative Agent or such Lender, agrees to repay the
Administrative Agent or such Lender, as the case may be, the amount paid over
to the Borrower (together with any penalties, interest or other charges imposed
by the relevant Governmental Authority) to the Administrative Agent or such
Lender in the event the Administrative Agent or such Lender is required to
repay such amount to the relevant Governmental Authority.  Nothing in this Section 2.18(d) shall
require the Administrative Agent or any Lender to make available to the
Borrower or any other Person any tax returns or other information the
Administrative Agent or such Lender deems to be confidential or
proprietary.  Notwithstanding anything to
the contrary, in no event will the Agent or any Lender be required pursuant to
this Section 2.18(d) to pay any amount to Borrower the payment of
which would place such Agent or Lender in a less favorable net after-tax
position than such Agent or Lender would have been in if the additional amounts
giving rise to such refund of Taxes had never been paid.

 

Section 2.19         Capital Adequacy.

 

If any Lender
shall reasonably determine that the adoption or taking effect of, or any change
in, any applicable Law regarding capital adequacy, in each instance, after the
Closing Date, or any change after the Closing Date in the interpretation,
administration or application thereof by any Governmental Authority, central
bank or comparable agency charged with the interpretation, administration or
application thereof, or the compliance by any Lender or any Person controlling
such Lender with any request, guideline or directive regarding capital adequacy
(whether or not having the force of Law) of any such Governmental Authority,
central bank or comparable agency adopted or otherwise taking effect after the
Closing Date, has or would have the effect of reducing the rate of return on
such Lender’s or such controlling Person’s capital as a consequence of such
Lender’s obligations hereunder or under any Support Agreement or Lender Letter
of Credit to a level below that which such Lender or such controlling Person
could have achieved but for such adoption, taking effect, change,
interpretation, administration, application or compliance (taking into
consideration such Lender’s or such controlling Person’s policies with respect
to capital adequacy) then from time to time, upon demand by such Lender (which
demand shall be accompanied by a statement setting forth the basis for such
demand and a calculation of the amount thereof in reasonable detail, a copy of
which shall be furnished to Administrative Agent), Borrower shall promptly pay
to such Lender such additional amount as will compensate such Lender or such
controlling Person for such reduction, so long as such amounts have accrued on
or after the day which is two hundred seventy (270) days prior to the date on
which such Lender first made demand therefor.

 

39

 

Section 2.20         Mitigation Obligations.

 

If any Lender
requests compensation under either Section 2.12(f)(v) or Section 2.19,
or requires Borrower to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.18,
then, upon the written request of Borrower, such Lender shall use reasonable
efforts to designate a different lending office for funding or booking its
Loans hereunder or to assign its rights and obligations hereunder (subject to
the provisions of Section 11.6) to another of its offices, branches or
affiliates, if, in the judgment of such Lender, such designation or assignment (i) would
eliminate or materially reduce amounts payable pursuant to any such Section, as
the case may be, in the future, (ii) would not subject such Lender to any
unreimbursed cost or expense and (iii) would not otherwise be
disadvantageous to such Lender (as determined in its sole discretion).  Without limitation of the provisions of Section 9.1,
Borrower hereby agrees to pay all costs and expenses incurred by any Lender in
connection with any such designation or assignment.

 

ARTICLE 3.

REPRESENTATIONS AND WARRANTIES

 

To induce
Administrative Agent and Lenders to enter into this Agreement and to make the
Loans and other credit accommodations contemplated hereby, Borrower hereby
represents and warrants to Administrative Agent and each Lender that:

 

Section 3.1            Existence and Power.

 

Each Credit
Party is an entity as specified on Schedule 3.1, is duly organized,
validly existing and in good standing under the laws of the jurisdiction
specified on Schedule 3.1, has the same legal name as it appears in such
Credit Party’s Organizational Documents and an organizational identification
number (if any), in each case as specified on Schedule 3.1, and has all
powers and all governmental licenses, authorizations, registrations, permits,
consents and approvals required under all applicable Laws and required in order
to carry on its business as now conducted (collectively, “Permits”), except where the failure to have
such Permits could not reasonably be expected to have a Material Adverse
Effect.  Each Credit Party is qualified
to do business as a foreign entity in each jurisdiction in which it is required
to be so qualified, except where the failure to be so qualified could not
reasonably be expected to have a Material Adverse Effect.  Except as set forth on Schedule 3.1, no
Credit Party has had, over the five (5) year period preceding the Closing
Date, any name other than its current name or was incorporated or organized
under the laws of any jurisdiction other than its current jurisdiction of
incorporation or organization.

 

Section 3.2            Organization and Governmental
Authorization; No Contravention.

 

The execution,
delivery and performance by each Credit Party of the Operative Documents to
which it is a party are within its powers, have been duly authorized by all
necessary action pursuant to its Organizational Documents, require no further
action by or in respect of, or filing with, any Governmental Authority and do
not violate, conflict with or cause a breach or a default under (i) any
Law or any of the Organizational Documents of any Credit Party or (ii) any
agreement or instrument binding upon it, except for such violations, conflicts,
breaches or defaults as could not reasonably be expected to have a Material
Adverse Effect.

 

40

 

Section 3.3            Binding Effect.

 

Each of the
Operative Documents to which any Credit Party is a party constitutes a valid
and binding agreement or instrument of such Credit Party, enforceable against
such Credit Party in accordance with its respective terms, except as the
enforceability thereof may be limited by bankruptcy, insolvency or other
similar laws relating to the enforcement of creditors’ rights generally and by
general equitable principles.

 

Section 3.4            Capitalization.

 

The authorized
Capital Stock of each of the Credit Parties as of the Closing Date is as set
forth on Schedule 3.4.  All issued
and outstanding Capital Stock of each of the Credit Parties are duly authorized
and validly issued, fully paid, non-assessable, free and clear of all Liens
other than those in favor of Administrative Agent for the benefit of
Administrative Agent and Lenders, and such Capital Stock were issued in
compliance with all applicable Laws.  The
identity of the holders of the Capital Stock of each of the Credit Parties and
the percentage of their fully-diluted ownership of the Capital Stock of each of
the Credit Parties as of the Closing Date is set forth on
Schedule 3.4.  No Capital Stock of
any Credit Party, other than as described above, are issued and outstanding as
of the Closing Date.  Except as set forth
on Schedule 3.4, as of the Closing Date there are no preemptive or other
outstanding rights, options, warrants, conversion rights or similar agreements
or understandings for the purchase or acquisition from any Credit Party of any
Capital Stock of any such entity.

 

Section 3.5            Financial Information.

 

(a)           Audited
Statements.  The consolidated balance
sheet of Holdings  and its
Consolidated Subsidiaries as of December 31, 2006 and the related
consolidated statements of operations, stockholders’ equity (or comparable
calculation, if such Person is not a corporation) and cash flows for the fiscal
year then ended, reported on by Deloitte & Touche copies of which have
been delivered to Administrative Agent, fairly present in all material
respects, in conformity with GAAP, the consolidated financial position of  Holdings and
its Consolidated Subsidiaries as of such date and their consolidated results of
operations, changes in stockholders’ equity (or comparable calculation) and
cash flows for such period.

 

(b)           Unaudited
Statements. The unaudited consolidated balance sheet of Holdings and its Consolidated
Subsidiaries as of December 31, 2007  and the
related unaudited consolidated statements of operations and cash flows for the
twelve months then ended, copies of which have been delivered to Administrative
Agent, fairly present in all material respects, in conformity with GAAP applied
on a basis consistent with the financial statements referred to in Section 3.5(a),
the consolidated financial position of the Holdings and its Consolidated Subsidiaries as of such date and
their consolidated  results of
operations and cash flows for the twelve months then ended (subject to normal
year-end adjustments and the absence of footnote disclosures).

 

(c)           Pro
Forma Balance Sheet.  The pro forma
balance sheet of Holdings and
its Consolidated Subsidiaries as of December 31, 2007, a copy of which has
been delivered to Administrative Agent, fairly presents in all material
respects, in conformity with GAAP applied on a basis consistent with the
financial statements referred to in Section 3.5(a), the consolidated

 

41

 

financial
position of Holdings and its
Consolidated Subsidiaries as of such date, adjusted to give effect (as if such
events had occurred on such date) to (i) the transactions contemplated by
the Operative Documents, (ii) the making of the initial Loans and the
issuance of any initial Letters of Credit, (iii) the application of the
proceeds therefrom as contemplated by the Operative Documents and (iv) the
payment of all legal, accounting and other fees related thereto to the extent
known at the time of the preparation of such balance sheet.  As of the date of such balance sheet and the
Closing Date, no Credit Party had or has any material liabilities, contingent
or otherwise, including liabilities for taxes, long-term leases or forward or
long-term commitments, which are not properly reflected on such balance sheet.

 

(d)           No
Material Adverse Change.  Since December 31,
2006, there has been no material adverse change in the business, operations,
properties, prospects or financial condition of  Holdings
and its Consolidated Subsidiaries, taken as a whole.

 

(e)           Holdings.  Holdings was formed to hold the Capital Stock
of Borrower, and, except as contemplated by this Agreement and the other
Operative Documents, has no liabilities or assets other than Capital Stock of
Borrower.

 

Section 3.6            Litigation.

 

Except as set
forth on Schedule 3.6, as of the Closing Date there is no material Litigation
pending against, or to Borrower’s knowledge threatened against or affecting,
any Credit Party.  There is no Litigation
pending which could reasonably be expected to have a Material Adverse Effect or
which in any manner draws into question the validity of any of the Operative
Documents.

 

Section 3.7            Ownership of Property.

 

Borrower and
each of its Subsidiaries is the lawful owner of, has good and marketable title
(subject to Permitted Liens) to and is in lawful possession of, or has valid
leasehold interests in, all properties and other assets (real or personal,
tangible, intangible or mixed) purported or reported to be owned or leased (as
the case may be) by such Person, except as may have been disposed of in the
Ordinary Course of Business or otherwise in compliance with the terms hereof.

 

Section 3.8            No Default.

 

No Default or
Event of Default has occurred and is continuing.  No Credit Party is in breach or default under
or with respect to any contract, agreement, lease or other instrument to which it
is a party or by which its property is bound or affected, which breach or
default could reasonably be expected to have a Material Adverse Effect.

 

Section 3.9            Labor Matters.

 

As of the
Closing Date, there are no strikes or other labor disputes pending or, to
Borrower’s knowledge, threatened against any Credit Party which could
reasonably be expected to have a Material Adverse Effect.  Hours worked and payments made to or on
behalf of the employees of the Credit Parties have not been in violation of the
Fair Labor Standards Act or any other applicable Law dealing with such matters,
except for such violations which could not

 

42

 

reasonably be
expected to have a Material Adverse Effect. 
All material payments due from the Credit Parties, or for which any
claim may be made against any of them, on account of wages and employee and
retiree health, if any, and welfare insurance and other benefits have been paid
or accrued as a liability on their books to the extent required by applicable
law, as the case may be.

 

Section 3.10         Regulated Entities.

 

No Credit
Party is an “investment company” or a company “controlled” by an “investment
company” or a “subsidiary” of an “investment company,” all within the meaning
of the Investment Company Act of 1940.

 

Section 3.11         Margin Regulations.

 

None of the
proceeds from the Loans have been or will be used, directly or indirectly, for
the purpose of purchasing or carrying any Margin Stock, for the purpose of
reducing or retiring any indebtedness which was originally incurred to purchase
or carry any Margin Stock or for any other purpose which might cause any of the
Loans to be considered a “purpose credit” within the meaning of Regulation T, U
or X of the Federal Reserve Board.

 

Section 3.12         Compliance With Laws; Anti-Terrorism
Laws.

 

(a)           Laws
Generally.  Each Credit Party is in
compliance with the requirements of all applicable Laws, except for such Laws
the noncompliance with which could not reasonably be expected to have a Material
Adverse Effect.

 

(b)           Anti-Terrorism
Laws.  None of the Credit Parties
and, to the knowledge of the Credit Parties, none of their Affiliates (i) is
in violation of any Anti-Terrorism Law, (ii) engages in or conspires to
engage in any transaction that evades or avoids, or has the purpose of evading
or avoiding, or attempts to violate, any of the prohibitions set forth in any
Anti-Terrorism Law, (iii) is a Blocked Person, or is controlled by a
Blocked Person, (iv) is acting or will act for or on behalf of a Blocked
Person, (v) is associated with, or will become associated with, a Blocked
Person or (vi) is providing, or will provide, material, financial or
technical support or other services to or in support of acts of terrorism of a
Blocked Person.  No Credit Party nor, to
the knowledge of any Credit Party, any of its Affiliates or agents acting or
benefiting in any capacity in connection with the transactions contemplated by
this Agreement, (A) conducts any business or engages in making or
receiving any contribution of funds, goods or services to or for the benefit of
any Blocked Person, or (B) deals in, or otherwise engages in any
transaction relating to, any property or interest in property blocked pursuant
to Executive Order No. 13224, any similar executive order or other
Anti-Terrorism Law.

 

Section 3.13         Taxes.

 

All Federal
and material state and local tax returns, reports and statements required to be
filed by or on behalf of each Credit Party have been filed with the appropriate
Governmental Authorities in all jurisdictions in which such returns, reports
and statements are required to be filed and, except to the extent subject to a
Permitted Contest, all Taxes (including real property Taxes) and other charges
shown to be due and payable in respect thereof have been timely paid prior to
the date on which any material fine, penalty, interest, late charge or loss may

 

43

 

be added
thereto for nonpayment thereof.  Except
to the extent subject to a Permitted Contest, all material state and local
sales and use Taxes required to be paid by each Credit Party have been
paid.  All Federal and material state
returns have been filed by each Credit Party for all periods for which returns
were due with respect to employee income tax withholding, social security and
unemployment taxes, and, except to the extent subject to a Permitted Contest,
the amounts shown thereon to be due and payable have been paid in full or
adequate provisions therefor have been made.

 

Section 3.14         Compliance with ERISA.

 

(a)           ERISA
Plans.  Except as could not
reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect, each ERISA Plan (and the related trusts and funding agreements)
complies in form and in operation with, has been administered in compliance
with, and the terms of each ERISA Plan satisfy, the applicable requirements of
ERISA and the Code.  The United States
Internal Revenue Service has issued a favorable determination letter with
respect to each ERISA Plan which is intended to be qualified under Section 401(a) of
the Code, which may be relied on currently. 
No Credit Party has incurred liability for any material excise tax under
any of Sections 4971 through 5000 of the Code.

 

(b)           Pension
Plans and Multiemployer Plans.  (A) During
the thirty-six (36) month period prior to the Closing Date or the making of any
Loan or the issuance of any Letter of Credit, (i) no steps have been taken
to terminate any Pension Plan and (ii) no contribution failure has
occurred with respect to any Pension Plan sufficient to give rise to a Lien
under Section 302(f) of ERISA. 
(B) No Credit Party has incurred liability to the PBGC (other than
for current premiums) with respect to any Pension Plan.  (C) All contributions (if any) have been
made on a timely basis to any Multiemployer Plan that are required to be made
by any Credit Party or any other member of the Controlled Group under the terms
of the Multiemployer Plan or of any collective bargaining agreement or by
applicable Law; no Credit Party nor any member of the Controlled Group has
withdrawn or partially withdrawn from any Multiemployer Plan, incurred any
withdrawal liability with respect to any such plan or received notice of any
claim or demand for withdrawal liability or partial withdrawal liability from
any such plan, and no condition has occurred which, if continued, could
reasonably be expected to result in a withdrawal or partial withdrawal from any
such plan, and no Credit Party nor any member of the Controlled Group has received
any notice that any Multiemployer Plan is in reorganization, that increased
contributions may be required to avoid a reduction in plan benefits or the
imposition of any excise tax, that any such plan is or has been funded at a
rate less than that required under Section 412 of the Code, that any such
plan is being terminated, or that any such plan is or is expected to become
insolvent.

 

Section 3.15         Brokers.

 

Except as set
forth on Schedule 3.15, and except for fees payable to Administrative Agent and/or
Lenders, no broker, finder or other intermediary has brought about the
obtaining, making or closing of the transactions contemplated by the Operative
Documents, and no Credit Party has or will have any obligation to any Person in
respect of any finder’s or brokerage fees in connection herewith or therewith.

 

44

 

Section 3.16         Related
Transactions.

 

The Acquisition has been consummated in all
material respects pursuant to the provisions of the Acquisition Documents, true
and complete copies of which have been delivered to Administrative Agent, and
in compliance with all applicable Law. 
The transactions contemplated by the Subordinated Debt Documents to be
consummated on or prior to the date hereof have been so consummated (including
without limitation the disbursement and transfer of all funds in connection
therewith) in all material respects pursuant to the provisions of the
applicable Operative Documents, true and complete copies of which have been
delivered to Administrative Agent, and in compliance with all applicable Law.

 

Section 3.17         Material
Contracts.

 

Except for the Operative Documents and the
other agreements set forth on Schedule 3.17 (collectively with the Operative
Documents, the “Material Contracts”),
as of the Closing Date there are no (i) employment agreements covering the
management of any Credit Party, (ii) collective bargaining agreements or
other labor agreements covering any employees of any Credit Party, (iii) agreements
for managerial, consulting or similar services to which any Credit Party is a
party or by which it is bound, (iv) agreements regarding any Credit Party,
its assets or operations or any investment therein to which any of its equity
holders is a party or by which it is bound, (v) real estate leases,
Intellectual Property licenses or other lease or license agreements to which
any Credit Party is a party, either as lessor or lessee, or as licensor or
licensee, or (vi) customer, distribution, marketing or supply agreements
to which any Credit Party is a party, in each case with respect to the
preceding clauses (i), (iii), (iv), (v) and (vi) requiring payment of
more than $500,000 in any year
($250,000 in any year in the case of real estate leases), (vii) partnership
agreements to which any Credit Party is a general partner or joint venture
agreements to which any Credit Party is a party or (viii) any other
agreements or instruments to which any Credit Party is a party, and the breach,
nonperformance or cancellation of which, or the failure of which to renew,
could reasonably be expected to have a Material Adverse Effect.  Schedule 3.17 sets forth, with respect to
each real estate lease agreement to which any Credit Party is a party as of the
Closing Date, the address of the subject property and the annual rental (or,
where applicable, a general description of the method of computing the annual
rental).  The consummation of the
transactions contemplated by the Financing Documents and the other Operative
Documents will not give rise to a right of termination in favor of any party to
any Material Contract (other than any Credit Party) if such termination could
reasonably be expected to have a Material Adverse Effect.

 

Section 3.18         Environmental
Compliance.

 

(a)           Hazardous
Materials.  Except in each case as
set forth on Schedule 3.18, (i) no Hazardous Materials are located on any
properties now or previously owned, leased or operated by any Credit Party or
have been released into the environment, or deposited, discharged, placed or
disposed of at, on, under or near any of such properties in a manner that would
require the taking of any action under any Environmental Law and could
reasonably be expected to give rise to, remediation costs and expenses on the
part of the Credit Parties in excess of an amount that could reasonably be
expected to have a Material Adverse Effect. 
No portion of any such property is being used, or has been used at any
previous time, for the disposal, storage, treatment, processing or other
handling of Hazardous Materials in violation of 

 

45

 

any
Environmental Law; and (ii) to the knowledge of Borrower, all oral or
written notifications of a release of Hazardous Materials required to be filed
by or on behalf of any Credit Party under any applicable Environmental Law have
been filed or are in the process of being timely filed by or on behalf of the
applicable Credit Party.

 

(b)           Notices
Regarding Environmental Compliance. 
Except in each case as set forth on Schedule 3.18, no notice,
notification, demand, request for information, citation, summons, complaint or
order has been issued, no complaint has been filed, no penalty has been
assessed and no investigation or review is pending, or to Borrower’s knowledge,
threatened by any Governmental Authority or other Person with respect to any (i) alleged
violation by any Credit Party of any Environmental Law, (ii) alleged
failure by any Credit Party to have any Permits required in connection with the
conduct of its business or to comply with the terms and conditions thereof, (iii) any
generation, treatment, storage, recycling, transportation or disposal of any
Hazardous Materials or (iv) release of Hazardous Materials.

 

(c)           Properties
Requiring Remediation.  Except in
each case as set forth on Schedule 3.18, no property now owned or leased by any
Credit Party and, to the knowledge of Borrower, no such property previously
owned or leased by any Credit Party, to which any Credit Party has transported
or arranged for the transportation of any Hazardous Materials, is listed or, to
Borrower’s knowledge, proposed for listing, on the National Priorities List
promulgated pursuant to CERCLA, or CERCLIS (as defined in CERCLA) or any
similar state list or is the subject of Federal, state or local enforcement
actions or, to the knowledge of Borrower, other investigations which may lead
to material claims against any Credit Party for clean-up costs, remedial work,
damage to natural resources or personal injury claims, including, but not
limited to, claims under CERCLA.

 

(d)           Underground
Storage Tanks.  Except in each case
as set forth on Schedule 3.18, there are no underground storage tanks located
on any property owned or leased by any Credit Party that are not properly
registered or permitted under applicable Environmental Laws or that are leaking
or disposing of Hazardous Materials so as to require the taking of any action
under applicable Environmental Laws.

 

(e)           Environmental
Liens.  Except in each case as set
forth on Schedule 3.18, there are no Liens under or pursuant to any applicable
Environmental Laws on any real property or other assets owned or leased by any
Credit Party, and no actions by any Governmental Authority have been taken or,
to the knowledge of Borrower, are in process which could subject any of such
properties or assets to such Liens.

 

For purposes of this Section 3.18,
each Credit Party shall be deemed to include any business or business entity
(including a corporation) which is, in whole or in part, a predecessor of such
Credit Party.

 

Section 3.19         Intellectual
Property.

 

Each Credit Party owns, is
licensed to use or otherwise has the right to use, all Intellectual Property
that is material to the condition (financial or other), business or operations
of such Credit Party.  All such
Intellectual Property existing as of the Closing Date and registered with any
United States or foreign Governmental Authority is set forth on Schedule 

 

46

 

3.19. 
All material Intellectual Property of each Credit Party is fully
protected and/or duly and properly registered, filed or issued in the appropriate
office and jurisdictions for such registrations, filings or issuances.  To Borrower’s knowledge, each Credit Party
conducts its business without infringement or claim of infringement of any
Intellectual Property rights of others and there is no infringement or claim of
infringement by others of any Intellectual Property rights of any Credit Party,
which infringement or claim of infringement could reasonably be expected to
have a Material Adverse Effect.

 

Section 3.20         Real
Property Interests.

 

Except for leasehold interests
disclosed on Schedule 3.17, and except for the ownership or other interests set
forth on Schedule 3.20, no Credit Party has, as of the Closing Date, any
ownership, leasehold or other interest in real property.  Schedule 3.20 sets forth, with respect to
each parcel of real estate owned by any Credit Party as of the Closing Date,
the address and legal description of such parcel.

 

Section 3.21         Solvency.

 

Borrower and each additional
Credit Party is Solvent.

 

Section 3.22         Full
Disclosure.

 

To the Borrower’s knowledge,
none of the information (financial or otherwise) furnished by or on behalf of
any Credit Party to Administrative Agent or any Lender in connection with the
consummation of the transactions contemplated by the Operative Documents,
contains any untrue statement of a material fact or omits to state a material
fact necessary to make the statements contained herein or therein not
misleading in light of the circumstances under which such statements were made.  All financial projections delivered to
Administrative Agent and Lenders have been prepared on the basis of the
assumptions stated therein.  Such
projections represent Borrower’s best estimate of Borrower’s future financial
performance and such assumptions are believed by Borrower to be fair and
reasonable in light of current business conditions; provided
that Borrower can give no assurance that such projections will be attained.

 

ARTICLE 4.

AFFIRMATIVE COVENANTS

 

Borrower agrees that, so long as any Credit Exposure exists:

 

Section 4.1            Financial
Statements and Other Reports.

 

Borrower will maintain and will
cause each Credit Party to maintain a system of accounting established and
administered in accordance with sound business practices to permit preparation
of financial statements in accordance with GAAP and to provide the information
required to be delivered to Administrative Agent and Lenders hereunder, and
will deliver to Administrative Agent all of the following deliveries, and, with
respect to each Lender, the deliveries required by Section 4.1 (a) through
(f), (m), (p), and (q):

 

47

 

(a)           Monthly
Financial Statements.  As soon as
practicable and in any event within thirty (30) days after the end of each
month (including the last month of Borrower’s Fiscal Year) (i) a
consolidated balance sheet of Holdings
and its Consolidated Subsidiaries as at the end of such month and the related
consolidated statements of operations and cash flows for such month and (ii) summary
statements of operations for the Family Entertainment Centers Division and the
Waterparks Division on a divisional basis as of the end of such month, and, in
case, for the portion of the Fiscal Year ended at the end of such month setting
forth in each case in comparative form the figures for the corresponding
periods of the previous Fiscal Year and the figures for such month and for such
portion of the Fiscal Year ended at the end of such month set forth in the
annual operating and Capital Expenditure budgets and cash flow forecast
delivered pursuant to Section 4.1(m), all in reasonable detail and
certified by a Responsible Officer as fairly presenting in all material
respects the financial condition and results of operations of Holdings and its
Consolidated Subsidiaries and as having been prepared in accordance with GAAP
applied on a basis consistent with the audited financial statements of
Holdings, subject to changes resulting from audit and normal year-end
adjustments and the absence of footnote disclosures.

 

(b)           Annual
Financial Statements.  As soon as
available and in any event within one hundred twenty (120) days after the end
of each Fiscal Year (commencing with the Fiscal Year ending December 31,
2007) , a consolidated balance sheet of Holdings
and its Consolidated Subsidiaries as of the end of such Fiscal Year and the
related consolidated statements of operations, stockholders’ equity (or the
comparable item, if Holdings is
not a corporation) and cash flows for such Fiscal Year, setting forth in each
case in comparative form the figures for the previous Fiscal Year and the
figures for such Fiscal Year set forth in the annual operating and Capital
Expenditure budgets and cash flow forecast delivered pursuant to Section 4.1(m),
certified without qualification (including with respect to the scope of audit)
or exception by independent public accountants of nationally recognized
standing and reasonably acceptable to Administrative Agent; provided that, with
respect to the Fiscal Year ending December 31, 2007, such financial statements
shall be delivered in a non-standard GAAP one year presentation.

 

(c)           Compliance
Certificates.  Together with each
delivery of financial statements pursuant to Sections 4.1(a) and
4.1(b), (i) a Compliance Certificate, and (ii) a summary report discussing
the reasons for any significant variations in the operations and financial
condition of Holdings and its Consolidated Subsidiaries as between the fiscal
period covered by such financial statements and the same periods during the
immediately preceding Fiscal Year, and as between such periods and the same
periods included in the projections and forecasts delivered pursuant to Section 4.1(m).

 

(d)           [Reserved.]

 

(e)           Accountant’s
Letters.  Promptly upon receipt
thereof, copies of all reports submitted to any Credit Party by independent
public accountants in connection with each annual, interim or special audit of
the financial statements of any Credit Party made by such accountants,
including the comment letter submitted by such accountants to management in
connection with any audit.

 

48

 

(f)            Regulatory
Filing Information.  Promptly upon
their becoming available, copies of (i) all financial statements, reports,
notices and proxy statements sent or made available generally by any Credit
Party to its security holders, (ii) all regular and periodic reports and
all registration statements and prospectuses filed by any Credit Party with any
securities exchange or with the Securities and Exchange Commission or any successor,
(iii) all press releases and other statements made available generally by
any Credit Party concerning material developments in the business of any Credit
Party and (iv) all Swap Contracts entered into by any Credit Party.  If information required to be delivered
pursuant to this clause (f) is posted on a website to which Administrative
Agent and all Lenders have been granted access, such information shall be
deemed to have been delivered pursuant to this clause (f) when the
Borrower has delivered notice of such posting to Administrative Agent and
Lenders.

 

(g)           Acquisition
Adjustments.  Promptly upon such
information becoming available, a summary of all purchase price and other
monetary adjustments in excess of $2,000,000 individually or in the aggregate
that are made pursuant to any of the Acquisition Documents.

 

(h)           Notices
of Material Events.  Promptly upon
any officer of any Credit Party obtaining knowledge (i) of the existence
of any Event of Default or Default, or becoming aware that the holder of any
Debt of any Credit Party in excess of $2,000,000
has given any notice or taken any other action with respect to a claimed
default thereunder, (ii) of any change in any Credit Party’s certified
accountant, (iii) that any Person has given any notice to any Credit Party
or taken any other action with respect to a claimed default under any Material
Contract (other than the Financing Documents) or any other material agreement
or instrument to which any Credit Party is a party or by which any of its assets
is bound, (iv) of the institution of any Litigation seeking equitable
relief or involving an alleged liability of any Credit Party equal to or
greater than $2,000,000 or any
adverse determination in any Litigation involving equitable relief or a potential
liability of any Credit Party equal to or greater than $2,000,000 or (v) any loss, damage or destruction of any
Collateral having a fair market value in excess of $2,000,000, whether or not covered by insurance, a certificate of
a Responsible Officer specifying the nature and period of existence of any such
condition or event, or specifying the notice given or action taken by such
holder or Person and the nature of such claimed default (including any Event of
Default or Default), event or condition, and what action the applicable Credit
Party has taken, is taking or proposes to take with respect thereto.

 

(i)            ERISA
Notices.  Promptly upon any officer
of any Credit Party obtaining knowledge of (i) the institution of any
steps by any member of the Controlled Group or any other Person to terminate
any Pension Plan, (ii) the failure of any member of the Controlled Group
to make a required contribution on a timely basis to any ERISA Plan or to any
Multiemployer Plan which could reasonably be expected to have a Material
Adverse Effect, (iii) the taking or omission of any action with respect to
a Pension Plan which could reasonably be expected to result in the requirement
that Borrower or any other Credit Party furnish a bond or other security to the
PBGC or such Pension Plan, (iv) the occurrence of or reasonably expected
occurrence of a reportable event under Section 4043 of ERISA (for which a
reporting requirement is not waived) with respect to any Pension Plan, (v) the
occurrence of any event with respect to any Pension Plan or Multiemployer Plan
which could reasonably be expected to result in the incurrence by any member of
the Controlled Group of any material liability, fine or penalty (including any
claim or demand for withdrawal liability or partial withdrawal from any
Multiemployer Plan), or 

 

49

 

(vi) the receipt by Borrower or any other Credit Party
of any notice that any Multiemployer Plan is in reorganization, that increased
contributions may be required to avoid a reduction in plan benefits or the
imposition of an excise tax, that any such plan is or is expected to be in “at
risk” status (within the meaning of Section 430(i) of the Code and
Title IV of ERISA), that any such plan is or has been funded at a rate less
than that required under Section 412 of the Code, that any such plan is
being terminated, or that any such plan is or may be expected to become
insolvent, a certificate of a Responsible Officer specifying the nature and
period of existence of any such condition or event, or specifying the notice
given or action taken by such holder or Person, and what action the applicable
Credit Party has taken, is taking or proposed to take with respect thereto.

 

(j)            Environmental
Notices.  Promptly upon any officer
of any Credit Party obtaining knowledge of any complaint, order, citation,
notice or other written communication from any Person delivered to any Credit
Party with respect to, or if any officer of any Credit Party becomes aware of (i) the
existence or alleged existence of a material violation of any applicable
Environmental Law, (ii) any release of any Hazardous Materials into the
environment requiring the taking of any action under Environmental Law, (iii) the
commencement of any cleanup of any Hazardous Materials, (iv) any pending
or threatened proceeding for the termination, suspension or non-renewal of any
Permit required under any applicable Environmental Law, or (v) any
property of any Credit Party that is or will be subject to a Lien imposed
pursuant to any Environmental Law, a certificate of a Responsible Officer
specifying the nature and period of existence of any such condition or event,
or specifying the notice given or action taken by such holder or Person, and
what action the applicable Credit Party has taken, is taking or proposes to
take with respect thereto.

 

(k)           New
Intellectual Property and Real Property. 
Promptly upon any officer of any Credit Party obtaining knowledge that
any Credit Party has either (i) registered or applied to register any
Intellectual Property with any Governmental Authority or (ii) acquired any
interest in real property constituting a Park or any other material real
property (including leasehold interests in such real property), a certificate
of a Responsible Officer describing such Intellectual Property and/or such real
property in such detail as Administrative Agent shall reasonably require.

 

(l)            Material
and Governmental Notices.  Promptly
upon receipt or filing thereof, copies of any reports or notices related to any
material taxes and any other material reports or notices received by any Credit
Party from, or filed by any Credit Party with, any Governmental Authority.

 

(m)          Projections.  Within sixty (60) days after the conclusion
of each Fiscal Year, Borrower’s annual operating plans, operating and Capital
Expenditure budgets, and financial forecasts, including cash flow projections
covering proposed fundings, repayments, additional advances, investments and
other cash receipts and disbursements, each for the following three (3) Fiscal
Years presented on a monthly basis for the next Fiscal Year and annually for
the two (2) subsequent Fiscal Years, all of which shall be in a format
reasonably consistent with projections, budgets and forecasts theretofore
provided to Lenders, and promptly following the preparation thereof, material
updates to any of the foregoing from time to time prepared by management of
Borrower.

 

50

 

(n)           [Reserved.]

 

(o)           Appraisals.  From time to time, if Administrative Agent or
any Lender determines that obtaining appraisals is necessary in order for
Administrative Agent or such Lender to comply with applicable Laws, appraisal
reports in form and substance and from appraisers satisfactory to Administrative
Agent which reports shall (i) state the then current fair market values of
all or any portion of the real estate owned by Borrower or any Subsidiaries and
(ii) be addressed to, or otherwise provide for express reliance by,
Administrative Agent and Lenders.  In
addition to the foregoing, at any time or from time to time during the
existence of an Event of Default, Administrative Agent may require Borrower to
obtain and deliver to Administrative Agent appraisal reports in form and
substance and from appraisers reasonably satisfactory to Administrative Agent
stating the then current market values of all or any portion of the real estate
and personal property owned by Borrower or any Subsidiaries.

 

(p)           Credit
Party Information.  With reasonable
promptness, such other information and data with respect to any Credit Party as
from time to time may be reasonably requested by Administrative Agent or any
Lender.

 

Section 4.2            Payment
and Performance of Obligations.

 

Borrower (i) will pay and
discharge, and cause each Subsidiary to pay and discharge, at or before
maturity, all of their respective obligations and liabilities, including tax
liabilities, except for such obligations and/or liabilities (A) that may
be the subject of a Permitted Contest and (B) the nonpayment or
nondischarge of which could not reasonably be expected to have a Material
Adverse Effect, (ii) will maintain, and cause each Subsidiary to maintain,
in accordance with GAAP, appropriate reserves for the accrual of all of their
respective obligations and liabilities and (iii) will not breach or permit
any Subsidiary to breach, or permit to exist any default under, the terms of
any lease, commitment, contract, instrument or obligation to which it is a
party, or by which its properties or assets are bound, except for such breaches
or defaults which could not reasonably be expected to have a Material Adverse
Effect.

 

Section 4.3            Maintenance
of Existence.

 

Borrower will preserve, renew
and keep in full force and effect, and will cause each Subsidiary to preserve,
renew and keep in full force and effect, their respective existence and their
respective rights, privileges and franchises necessary or desirable in the
normal conduct of business.

 

Section 4.4            Maintenance
of Property; Insurance.

 

(a)           Maintenance
of Property.  Borrower will keep, and
will cause each Subsidiary to keep, all material property useful and necessary
in its business in good working order and condition, ordinary wear and tear
excepted.

 

(b)           Required
Insurance Coverage.  Borrower will
maintain, and will cause each Subsidiary to maintain, (i) casualty
insurance on all real and personal property on an all risks basis (including
the perils of flood and quake), covering the repair and replacement cost of all
such property and coverage for business interruption and public liability
insurance (including products/completed operations liability coverage) in each
case of the kinds customarily carried or 

 

51

 

maintained
by Persons of established reputation engaged in similar businesses and in
amounts acceptable to Administrative Agent and (ii) such other insurance
coverage in such amounts and with respect to such risks as Administrative Agent
may reasonably request.  All such
insurance shall be provided by insurers having an A.M. Best policyholders
rating reasonably acceptable to Administrative Agent.  Borrower will not, and will not permit any
Subsidiary to, bring or keep any article on any business location of any Credit
Party, or cause or allow any condition to exist, if the presence of such
article or the occurrence of such condition could reasonably cause the
invalidation of any insurance required by this Section 4.4(b), or would
otherwise be prohibited by the terms thereof.

 

(c)           Evidence
of Insurance Coverage.  On or prior
to the Closing Date, and at all times thereafter, Borrower will cause
Administrative Agent to be named as an additional insured, assignee and loss
payee (which shall include, as applicable, identification as mortgagee), as
applicable, on each insurance policy required to be maintained pursuant to this
Section 4.4 pursuant to endorsements in form and substance reasonably
acceptable to Administrative Agent. 
Borrower will deliver to Administrative Agent and Lenders (i) on
the Closing Date, a certificate from Borrower’s insurance broker dated such
date showing the amount of coverage as of such date, and that such policies
will include effective waivers (whether under the terms of any such policy or
otherwise) by the insurer of all claims for insurance premiums against all loss
payees and additional insureds and all rights of subrogation against all loss
payees and additional insureds, and that if all or any part of such policy is
canceled, terminated or expires, the insurer will forthwith give notice thereof
to each additional insured, assignee and loss payee and that no cancellation,
reduction in amount or material change in coverage thereof shall be effective
until at least ten (10) days after receipt by each additional insured,
assignee and loss payee of written notice thereof, (ii) on an annual
basis, and upon the reasonable request of any Lender through Administrative
Agent from time to time full information as to the insurance carried, (iii) within
five (5) days of receipt of notice from any insurer, a copy of any notice
of cancellation, nonrenewal or material change in coverage from that existing
on the date of this Agreement and (iv) forthwith, notice of any
cancellation or nonrenewal of coverage by Borrower.

 

(d)           [Reserved.]

 

(e)           Right
to Purchase Insurance.  In the event Borrower fails to provide
Administrative Agent with evidence of the insurance coverage required by this
Agreement, Administrative Agent may, following not less than fifteen (15) days’
prior written notice to Borrower (or such shorter notice as may be necessary to
prevent any lapse in such insurance coverage), purchase insurance at Borrower’s
expense to protect Administrative Agent’s interests in the Collateral.  This insurance may, but need not, protect
Borrower’s interests.  The coverage
purchased by Administrative Agent may not pay any claim made by Borrower or any
claim that is made against Borrower in connection with the Collateral.  Borrower may later cancel any insurance
purchased by Administrative Agent, but only after providing Administrative
Agent with evidence that Borrower has obtained insurance as required by this
Agreement.  If Administrative Agent
purchases insurance for the Collateral, Borrower will be responsible for the
costs of that insurance to the fullest extent provided by Law including
interest and other charges imposed by Administrative Agent in connection with
the placement of the insurance, until the effective date of the cancellation or
expiration of the insurance.  The costs
of the insurance may be added to the Obligations.  The costs of the insurance may be more than
the cost of insurance Borrower is able to obtain on its own.

 

52

 

Section 4.5            Compliance
with Laws.

 

Borrower will comply, and cause
each Subsidiary to comply, with the requirements of all applicable Laws, except
to the extent that failure to so comply could not reasonably be expected to
have a Material Adverse Effect or result in any Lien (other than a Permitted
Lien) upon a material portion of the assets of any such Person in favor of any
Governmental Authority.

 

Section 4.6            Inspection
of Property, Books and Records.

 

Borrower will keep, and will
cause each Subsidiary to keep, proper books of record and account in accordance
with GAAP in which full, true and correct entries shall be made of all dealings
and transactions in relation to its business and activities; and will permit,
and will cause each Subsidiary to permit, at the sole cost of Borrower or any
applicable Subsidiary, representatives of Administrative Agent (and of any
Lender during and upon the existence and continuance of an Event of Default) to
visit and inspect any of their respective properties (subject to the rights of
third party tenants and licensees), to examine and make abstracts or copies
from any of their respective books and records, to conduct a collateral audit
and analysis of their respective Inventory and Accounts and to discuss their
respective affairs, finances and accounts with their respective officers, employees
and independent public accountants as often as may reasonably be desired;
provided, that, following the Closing Date, Borrower and its Subsidiaries shall
not be obligated to reimburse Administrative Agent and Lenders for the cost of
more than two (2) inspection per Fiscal Year made in the absence of an
Event of Default.  In the absence of an
Event of Default, Administrative Agent shall give Borrower or any applicable
Subsidiary commercially reasonable prior written notice of such exercise.  No notice shall be required during the
existence and continuance of any Event of Default.

 

Section 4.7            Use
of Proceeds.

 

Borrower will use the proceeds
of Term Loan B solely to fund a Restricted Distribution of up to $9,000,000 for
the purposes of permitting Purchaser to repay a portion of the Existing RBS
Debt, to fund the repayment of Debt under the Existing Credit Agreement, to
fund the Existing Notes Tender Offer and the payment of related costs and
expenses.  The proceeds of Revolving
Loans shall be used by Borrower solely for the purposes set forth in the
preceding sentence, for working capital needs of Borrower and its Subsidiaries and to provide financing
to consummate Permitted Acquisitions.

 

Section 4.8            Lenders’
Meetings.

 

Borrower will, in each case to
the extent requested by either Administrative Agent or Required Lenders,
conduct (a) a monthly conference call with Administrative Agent and
Lenders and (b) an annual meeting of Administrative Agent and Lenders (or,
at Administrative Agent’s election, an annual conference call with
Administrative Agent and Lenders), in each case to discuss the most recently
reported financial results and the financial condition of Borrower and its
Subsidiaries, at which shall be present a Responsible Officer and such other officers
of the Credit Parties as may be reasonably requested to attend by
Administrative Agent or Required Lenders, such request or requests to be made
within a reasonable time prior to the 

 

53

 

scheduled date of such conference call or
such meeting, as applicable.  Such
meetings and conference calls shall be held at a time and place convenient to
Lenders and to Borrower.

 

Section 4.9            Required
Swap Contracts.

 

Not later than ninety (90) days
following the Closing Date, Borrower will, at its sole cost and expense, enter
into and thereafter maintain in full force and effect Swap Contracts providing
protection against fluctuations in interest rates with respect to not less than
fifty percent (50%) of the principal amount of Term Loan B as of the Closing
Date, which Swap Contracts shall provide for not less than a three (3) year
term and shall contain such protections and other terms as are customary and
are reasonably satisfactory to Administrative Agent.

 

Section 4.10         Hazardous
Materials; Remediation.

 

(a)           Remediation.  If any release or disposal of Hazardous
Materials shall occur or shall have occurred on any real property or any other
assets of Borrower or any other Credit Party, Borrower will cause, or direct the
applicable Credit Party to cause, the prompt containment and removal of such
Hazardous Materials and the remediation of such real property or other assets
as is necessary to comply with all Environmental Laws and to preserve the value
of such real property or other assets. 
Without limiting the generality of the foregoing, Borrower shall, and
shall cause each other Credit Party to, comply with each Environmental Law
requiring the performance at any real property by Borrower or any other Credit
Party of activities in response to the release or threatened release of a
Hazardous Material.

 

(b)           Financial
Assurance. Borrower will provide Administrative Agent within thirty (30)
days after demand therefor with a bond, letter of credit or similar financial
assurance evidencing to the satisfaction of Administrative Agent that
sufficient funds are available to pay the cost of removing, treating and
disposing of any Hazardous Materials or Hazardous Materials Contamination and
discharging any assessment which may be established on any property as a result
thereof, such demand to be made, if at all, upon Administrative Agent’s
reasonable business determination that the failure to remove, treat or dispose
of any Hazardous Materials or Hazardous Materials Contamination, or the failure
to discharge any such assessment could reasonably be expected to have a
Material Adverse Effect.

 

Section 4.11         Further
Assurances.

 

(a)           General.  Borrower will, and will cause each
Subsidiary, at its own cost and expense, to promptly and duly take, execute,
acknowledge and deliver all such further acts, documents and assurances as may
from time to time be necessary or as Administrative Agent or Required Lenders
may from time to time reasonably request in order to carry out the intent and
purposes of the Financing Documents and the transactions contemplated thereby,
including all such actions to establish, create, preserve, protect and perfect
a first priority Lien (subject only to Permitted Liens) in favor of
Administrative Agent for itself and for the benefit the Lenders on the
Collateral (including Collateral acquired after the date hereof), including on
any and all assets of each Credit Party, whether now owned or hereafter
acquired.

 

(b)           New
Subsidiaries.  Without limiting the generality of the
foregoing, in the event Borrower or any of its Subsidiaries shall acquire or form any new Subsidiary
after the date 

 

54

 

hereof,
Borrower or the respective Subsidiary will cause such new Subsidiary, upon such acquisition and concurrently
with such formation (excluding any Foreign Subsidiary whose guarantee or grant
of a Lien would result in material adverse tax consequences to Borrower under Section 956
of the Internal Revenue Code as determined by Administrative Agent), (i) to execute a Guarantee (in
form and substance reasonably acceptable to Administrative Agent) guaranteeing
payment and performance of all of the Obligations and to take such other action
(including, without limitation, authorizing the filing of such UCC financing
statements and delivering certificates in respect of the Capital Stock of such
Subsidiary) as shall be necessary or appropriate to establish, create,
preserve, protect and perfect a first priority Lien (subject only to Permitted
Liens) in favor of Administrative Agent for the benefit of Administrative Agent
and Lenders on all assets, both real and personal, in which such new Subsidiary
has or may thereafter acquire any interest, (ii) to execute such other Security Documents, in form and
substance reasonably acceptable to Administrative Agent, as may be required or
requested by Administrative Agent in connection with the actions contemplated
hereby and (iii) to deliver
such proof of corporate (or comparable) action, incumbency of officers,
opinions of counsel and other documents as Administrative Agent shall have
required or requested.  Until such time
that any Subsidiary shall have fully complied with the provisions of this
paragraph, and without limitation of any rights and remedies available to
Administrative Agent and Lenders as a result thereof, the operating results of
such Subsidiary shall be disregarded in the calculation of EBITDA for any
measurement period.

 

(c)           Capital
Stock.  Borrower will, and will cause
each of its Subsidiaries, to take such action from time to time as shall be
necessary to ensure that each of its Subsidiaries is a Wholly-Owned Subsidiary
and that Administrative Agent shall have, for the benefit of Administrative
Agent and Lenders, a first priority Lien on all Capital Stock of each
Subsidiary, provided that neither Borrower nor any Foreign Subsidiary shall be
required to pledge more than 65% of the Capital Stock of any such foreign
subsidiary to the extent such grant and/or pledge would result in material
adverse tax consequences to Borrower under Section 956 of the Internal
Revenue Code as determined by Administrative Agent).  In the event that any additional Capital
Stock shall be issued by any Subsidiary, Borrower shall or shall cause each of
its Subsidiaries to, concurrently with such issuance, deliver to Administrative
Agent to the extent required by the applicable Financing Documents the
certificates evidencing such Capital Stock, accompanied by undated powers
executed in blank and to take such other action as Administrative Agent shall
request to perfect the security interest created therein pursuant to such
Financing Documents.

 

(d)           Real
Property.  (1) Concurrently with
the acquisition by Borrower or any of its Subsidiaries following the date
hereof of any real estate or real
property leasehold interests, Borrower will, within sixty (60) days following written request by Administrative Agent,
deliver or cause to be delivered to Administrative Agent, with respect to such
real estate, (i) a mortgage
or deed of trust, as applicable, in form and substance reasonably satisfactory
to Administrative Agent, executed by the title holder thereof, (ii) an ALTA lender’s title
insurance policy issued by a title insurer reasonably satisfactory to
Administrative Agent in form and substance and in amounts reasonably
satisfactory to Administrative Agent insuring Administrative Agent’s first
priority Lien on such real estate, free and clear of all defects and
encumbrances except Permitted Liens, (iii) a
current ALTA survey, certified to Administrative Agent by a licensed surveyor,
in form and substance reasonably satisfactory to Administrative Agent, (iv) a certificate, in form and
substance reasonably acceptable to Administrative Agent, to Administrative
Agent from a national certification agency acceptable to Administrative Agent,
indicating whether such real 

 

55

 

estate is
located in a special flood hazard area and (v) in
the case of real estate that consists of a leasehold estate, such estoppel
letters, consents and waivers from the landlords and non-disturbance agreements
from any holders of mortgages or deeds of trust on such real estate as may be
requested reasonably by Administrative Agent, all of which shall be in form and
substance reasonably satisfactory to Administrative Agent.

 

(2)           With respect to any Designated Leased Facility which has
not been sold or otherwise disposed of by the applicable Credit Party to a
third party purchaser within ninety (90) days following the Closing Date,
Borrower will, within sixty (60) days following written request by
Administrative Agent, deliver or cause to be delivered to Administrative Agent,
with respect to such Designated Leased Facility, each of the items specified in
clause (1) above (if requested by Administrative Agent) to the extent not
otherwise delivered by Administrative Agent on the Closing Date; provided, that
Borrower shall only be required to use its best efforts to deliver or cause to
be delivered the items specified in subclause (v) of clause (1) above.

 

Section 4.12         Clean Down.  Borrower will reduce the sum of Revolving
Loan Outstandings and Swingline Loan Outstandings to zero for a period of at
least 30 consecutive days during the twelve (12) month period ending on the
last day of each month, commencing with the twelve (12) month period ending January 31,
2009.

 

ARTICLE 5.

NEGATIVE COVENANTS

 

Borrower agrees that, so long as any Credit Exposure exists:

 

Section 5.1            Debt.

 

Borrower will not, and will not
permit any Subsidiary to, directly or indirectly, create, incur, assume,
guarantee or otherwise become or remain directly or indirectly liable with
respect to, any Debt, except for:

 

(a)           Debt under
the Financing Documents and Letter of Credit Liabilities;

 

(b)           Debt outstanding
on the Closing Date and set forth on Schedule 5.1 and any refinancings,
refundings, renewals or extensions thereof to the extent that the amount of
such Debt is not increased at the time of such refinancing, refunding, renewal
or extension except by an amount equal to fees and expenses reasonably incurred
in connection with such refinancing and by an amount equal to any existing
unutilized commitments thereunder;

 

(c)           Subordinated
Debt;

 

(d)           Debt
incurred or assumed for the purpose of financing all or any part of the cost of
acquiring any fixed asset (including through Capital Leases), in an aggregate
principal amount at any time outstanding not greater than $3,000,000;

 

(e)           Debt, if
any, arising under Swap Contracts;

 

(f)            Intercompany
Debt arising from loans made by (i) Borrower to its Wholly-Owned Domestic
Subsidiaries to fund working capital requirements of such Subsidiaries 

 

56

 

in the
Ordinary Course of Business, or (ii) any Wholly-Owned Subsidiary of
Borrower to Borrower; provided, however, that upon the request of
Administrative Agent at any time, any such Debt shall be evidenced by
promissory notes having terms reasonably satisfactory to Administrative Agent,
the sole originally executed counterparts of which shall be pledged and
delivered to Administrative Agent, for the benefit of Administrative Agent and
Lenders, as security for the Obligations; and

 

(g)           Unsecured
Debt not to exceed $3,000,000 in the aggregate at any time outstanding.

 

Section 5.2            Liens.

 

Borrower will not, and will not
permit any Subsidiary to, directly or indirectly, create, assume or suffer to
exist any Lien on any asset now owned or hereafter acquired by it, except:

 

(a)           Liens
created by the Security Documents;

 

(b)           Liens
existing on the Closing Date and set forth on Schedule 5.2 and any
extensions or renewals thereof, provided that (i) the Debt secured is not
increased except as permitted by Section 5.1(b) and (ii) such
Lien is not extended to any other property;

 

(c)           Any Lien
on any asset securing Debt permitted under Section 5.1(d), provided that such Lien attaches only to the assets financed
by such Debt, and such Lien attaches concurrently with or within ninety (90)
days after the acquisition thereof;

 

(d)           Liens for
taxes or other governmental or quasi-governmental charges not at the time
delinquent or thereafter payable without penalty or the subject of a Permitted
Contest;

 

(e)           Liens
arising in the Ordinary Course of Business (i) in favor of carriers,
warehousemen, mechanics and materialmen, and other similar Liens imposed by Law
and (ii) in connection with worker’s compensation, unemployment
compensation and other types of social security (excluding Liens arising under
ERISA) or in connection with surety bonds, bids, performance bonds and similar
obligations for sums not overdue for a period of more than 30 days or the
subject of a Permitted Contest and not involving any deposits or advances or
borrowed money or the deferred purchase price of property or services and, in
each case, for which it maintains adequate reserves;

 

(f)            Attachments,
appeal bonds, judgments and other similar Liens, for sums not exceeding $2,000,000 in the aggregate arising in
connection with court proceedings; provided
that the execution or other enforcement of such Liens is effectively stayed and
the claims secured thereby are the subject of a Permitted Contest; and

 

(g)           Easements,
rights of way, restrictions, minor defects or irregularities in title and other
similar Liens not interfering in any material respect with the ordinary conduct
of the business of Borrower or any Subsidiary.

 

57

 

Section 5.3            Contingent
Obligations.

 

Borrower will not, and will not permit any
Subsidiary to, directly or indirectly, create, assume, incur or suffer to exist
any Contingent Obligations, except for:

 

(a)           Contingent
Obligations arising in respect of the Debt under the Financing Documents and
Letter of Credit Liabilities;

 

(b)           Contingent
Obligations resulting from endorsements for collection or deposit in the
Ordinary Course of Business;

 

(c)           Contingent Obligations arising under Required
Swap Contracts, and so long as there exists no Event of Default both
immediately before and immediately after giving effect to any such transaction,
Contingent Obligations existing or arising under any other Swap Contract, provided
that such obligations are (or were) entered into by Borrower or a Subsidiary in
the Ordinary Course of Business for the purpose of directly mitigating risks
associated with liabilities, commitments, investments, assets, or property held
or reasonably anticipated by such Person and not for purposes of speculation;

 

(d)           Contingent
Obligations outstanding on the Closing Date and set forth on Schedule 5.3 and
Contingent Obligations in respect of any refinancings, refundings, renewals or
extensions of the Debt underlying such Contingent Obligations to the extent
such Debt is permitted by Section 5.1(b);;

 

(e)           Contingent
Obligations incurred in the Ordinary Course of Business with respect to surety
and appeal bonds, performance bonds and other similar obligations not to exceed
$2,000,000 in the aggregate at
any time outstanding;

 

(f)            Contingent
Obligations arising under indemnity agreements with title insurers to cause
such title insurers to issue to Administrative Agent mortgagee title insurance
policies;

 

(g)           Contingent
Obligations arising with respect to customary indemnification obligations in
favor of purchasers in connection with dispositions permitted under Section 5.7;
and

 

(h)           other
Contingent Obligations not permitted by clauses (a) through (g) above,
not to exceed $3,000,000 in the
aggregate at any time outstanding.

 

Section 5.4            Restricted
Distributions.

 

Borrower will not, and will not permit any
Subsidiary to, directly or indirectly, declare, order, pay, make or set apart
any sum for any Restricted Distribution; provided that
the foregoing shall not restrict or prohibit any Subsidiary from making
dividends or distributions, directly or indirectly, to Borrower or to any
Wholly-Owned Domestic Subsidiary of Borrower; provided, further,
that the foregoing shall not restrict or prohibit Borrower from making a
Restricted Distribution to Holdings on the Closing Date (or within 10 days
thereafter) in an amount not to exceed $9,000,000 in order to permit Holdings
to contemporaneously make a Restricted Distribution of like amount to Purchaser
to permit Purchaser to repay a portion of the 

 

58

 

Existing RBS Debt on the Closing Date (or within 10 days thereafter)
(with evidence of such repayment to be provided to Administrative Agent
promptly thereafter) (the “RBS Restricted Distribution”); provided, further,
that the foregoing shall not restrict or prohibit dividends or distributions,
directly or indirectly, to Holdings at such times and in such amounts as are
necessary to permit:

 

(a)           Purchases
of Holdings Stock.  Purchases of
shares of (or options to purchase shares of) Capital Stock in Parent or options
therefor from employees of any Credit Party upon their death, termination of
their employment or retirement, so long as before and after giving effect to
any such dividend or distribution for such purpose, (i) no Event of
Default shall have occurred and be continuing, (ii) Borrower is in
compliance on a pro forma basis with the covenants set forth in Article 7
recomputed for the most recently ended quarter for which information is
available and is in compliance with all other terms and conditions of this
Agreement and (iii) if such dividend or distribution is made prior to the
Commitment Expiry Date, the Revolving Loan Limit minus the Revolving
Loan Outstandings is equal to or greater than $20,000,000 and (iv) such purchases or payments after the
Closing Date do not exceed $2,000,000
in any Fiscal Year and do not exceed $4,000,000
in the aggregate from and after the Closing Date;

 

(b)           Taxes
and Administrative Expenses Payments. 
Payment of taxes by Holdings and, so long as no Event of Default shall
have occurred and be continuing both before and after giving effect to any such
dividend or distribution, payment of out-of-pocket administrative expenses
(including without limitation the payment of reasonable director fees but
excluding the payment of management fees to the Investors) payable by Holdings
in an aggregate amount, with respect to all such administrative expenses, not
to exceed $500,000 in any Fiscal
Year.

 

Section 5.5            Restrictive
Agreements.

 

Borrower will not, and will not permit any
Subsidiary to, directly or indirectly (i) enter into or assume any
agreement (other than the Financing Documents and the Subordinated Debt
Documents) prohibiting the creation or assumption of any Lien upon its
properties or assets, whether now owned or hereafter acquired or (ii) create
or otherwise cause or suffer to exist or become effective any consensual
encumbrance or restriction of any kind on the ability of any Subsidiary to pay
or make Restricted Distributions to Borrower or any Subsidiary, to pay any
Debt owed to Borrower or any Subsidiary, to make loans or advances to
Borrower or any Subsidiary or to transfer any of its property or assets to
Borrower or any Subsidiary.

 

Section 5.6            Payments
and Modifications of Subordinated Debt.

 

(a)           Borrower
will not, and will not permit any Subsidiary to, directly or indirectly (i) declare,
pay, make or set aside any amount for payment in respect of the Subordinated
Debt, except for regularly scheduled payments of interest (but no voluntary
prepayments) and other amounts in respect of the Subordinated Debt  made in full compliance with the
Subordination Agreement; or (ii) amend or otherwise modify the terms of
the Subordinated Debt except as expressly permitted by the Subordination
Agreement.  Borrower shall, prior to
entering into any such amendment or modification, deliver to Administrative
Agent reasonably in advance of the execution thereof, any final or execution
form copy thereof.

 

59

 

(b)           Borrower
will not, and will not permit any Subsidiary to, directly or indirectly
declare, pay, make or set aside any amount for payment in respect of any Debt
hereinafter incurred (other than the Subordinated Debt) that, by its terms, or
by separate agreement, is subordinated to the Obligations, except for regularly
scheduled payments of interest in respect of such Debt made in full compliance
with the subordination provisions applicable thereto, or amend or otherwise
modify the terms of any such Debt if the effect of such amendment or
modification is to (A) increase the interest rate or fees on, or change
the manner or timing of payment of, such Debt, (B) accelerate or shorten
the dates upon which payments of principal or interest are due on, or the
principal amount of, such Debt, (C) change in a manner adverse to any
Credit Party or Administrative Agent any event of default or add or make more
restrictive any covenant with respect to such Debt, (D) change the
prepayment provisions of such Debt or any of the defined terms related thereto,
(E) change the subordination provisions thereof (or the subordination
terms of any guaranty thereof), or (F) change or amend any other term if
such change or amendment would materially increase the obligations of the
obligor or confer additional material rights on the holder of such Debt in a
manner adverse to Borrower, any Subsidiaries, Administrative Agent or
Lenders.  Borrower shall, prior to
entering into any such amendment or modification, deliver to Administrative
Agent reasonably in advance of the execution thereof, any final or execution
form copy thereof.

 

Section 5.7            Consolidations,
Mergers and Sales of Assets.

 

Borrower will not, and will not
permit any Subsidiary to, directly or indirectly (i) consolidate or merge
with or into any other Person other than (A) mergers consummated to effect the consummation of a Permitted
Acquisition and (B) in each case with not less than twenty (20) Business
Days’ prior written notice to Administrative Agent (or such lesser amount of
notice as Administrative Agent, in its sole discretion, may from time to time
permit) mergers of any Wholly-Owned Subsidiary with and into Borrower (with
Borrower as the surviving entity of such merger) or with and into any
other Wholly-Owned Subsidiary of Borrower  or
(ii) consummate any Asset Dispositions other than dispositions of fixed
assets for cash and fair value if all of the following conditions are met:  (A) the market value of assets sold or
otherwise disposed of in any single transaction or series of related
transactions does not exceed $5,000,000
(except in the case of dispositions of Designated Leased Facilites) and
the aggregate market value of assets sold or otherwise disposed of during the
term of this Agreement does not exceed $35,000,000,
(B) the Net Cash Proceeds of any such disposition are applied as required
by Section 2.3(d), (C) after giving effect to any such disposition
and the repayment of Debt with the proceeds thereof, Borrower is in compliance
on a pro forma basis with the covenants set forth in Article 6 recomputed
for the most recently ended quarter for which information is available and is
in compliance with all other terms and conditions of this Agreement, and (D) no
Default or Event of Default then exists or would result from any such
disposition.  Administrative Agent shall,
with reasonable promptness following Borrower’s request and at Borrower’s
expense, release any Lien granted to Administrative Agent under any Security
Document upon property sold or otherwise disposed of as part of an Asset
Disposition permitted under clause (ii) of the preceding sentence.

 

Section 5.8            Purchase
of Assets, Investments.

 

(a)           General
Provisions. Borrower will not, and will not permit any Subsidiary to,
directly or indirectly:

 

60

 

(i)            acquire
or enter into any agreement to acquire any assets other than in the Ordinary
Course of Business, constituting Capital Expenditures to the extent permitted
pursuant to Section 6.1 or constituting replacement assets purchased with
proceeds of Property Insurance Policies, awards or other compensation with
respect to any eminent domain, condemnation or similar proceeding or with the
proceeds of Asset Dispositions as permitted in Section 2.3(d);

 

(ii)           create,
acquire or enter into any agreement to create or acquire any Subsidiary other
than Wholly-Owned Domestic Subsidiaries acquired or created in connection with
the consummation of Permitted Acquisitions and for which the requirements set
forth in Section 4.11 have been satisfied;

 

(iii)          engage or
enter into any agreement to engage in any joint venture or partnership with any
other Person; or

 

(iv)          acquire or
own or enter into any agreement to acquire or own any Investment in any Person
other than:

 

(A)          Investments
existing on the date of this Agreement and set forth on Schedule 5.8;

 

(B)           Cash
Equivalents;

 

(C)           Investments
in the Capital Stock of any Wholly-Owned Domestic Subsidiary existing as of the
date hereof or otherwise formed or organized in compliance with the terms of
this Agreement and so long as (x) Borrower has pledged to Administrative
Agent all of the outstanding Capital Stock of any such Domestic Subsidiary, (y) any
such Subsidiary has Guaranteed the Obligations and secured such Guarantee by
granting in favor of Administrative Agent, for its benefit and the benefit of
Lenders, a Lien on all or substantially all of its assets to the extent
required by the provisions of Section 4.11 and (z) Borrower has
otherwise complied with the provisions of Section 4.11;

 

(D)          bank
deposits established in accordance with Section 5.17;

 

(E)           Investments
in securities of Account Debtors received pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of such
Account Debtors;

 

(F)           Investments
in the form of Swap Contracts permitted under Section 5.3(c); and

 

(G)           loans to
officers and employees in an aggregate principal amount not to exceed $1,000,000 at any time outstanding; and

 

(b)           Permitted
Acquisitions.  Notwithstanding the
foregoing, Borrower may acquire, or may cause a Wholly-Owned Domestic
Subsidiary to acquire, all or substantially all of the assets, or all (but not
less than all) of the Capital Stock, of any Person (the “Target”) (in each case, a “Permitted Acquisition”) with the prior
written approval of Required Lenders or subject to the satisfaction of each of
the following conditions:

 

61

 

(i)            unless
Administrative Agent agrees otherwise, Administrative Agent shall have received
not less than 20 days’ prior
notice of such proposed Permitted Acquisition, which notice shall include a due
diligence package including the following materials, each in form and substance
reasonably satisfactory to Administrative Agent:

 

(A)          copies of
the Target’s two most recent annual income statements and balance sheets,
together with the audit opinions thereon, if any, of the Target’s independent
accountants, together with available interim financial statements, (B) a
general description of the business to be acquired, (C) a summary of
pending and known threatened litigation
adversely affecting the business or assets to be acquired, (D) a
description of the method of financing such acquisition, including sources and
uses, (E) a listing of locations of all personal and real property to be
acquired, (F) all material agreements to be assumed or acquired, (G) if
the Target owns or leases, or if the assets to be acquired includes, any real
property and if requested by Administrative Agent in its commercially
reasonable discretion, environmental reports and related information regarding
any such property owned, leased or otherwise used (other than leased property
used solely as office space), and (H) final copies of all acquisition
agreements and all material related transaction documents for such acquisition,
together with all schedules thereto (followed by fully executed copies thereof
within five (5) Business Days after the closing of such acquisition).

 

(ii)           unless
Administrative Agent agrees otherwise, concurrently with delivery of the notice
and due diligence materials referred to in clause (i) above, Borrower
shall have delivered to Administrative Agent, in form and substance reasonably
satisfactory to Administrative Agent:

 

(A)          a pro forma
consolidated and consolidating balance sheet, income statement and cash flow
statement of Holdings and its Subsidiaries (the “Acquisition Pro Forma”), based on most recently available
financial statements, which shall be complete and shall fairly present in all
material respects the assets, liabilities, financial condition and results of
operations of Holdings and its Subsidiaries in accordance with GAAP
consistently applied, but taking into account such Permitted Acquisition, the
funding of all Loans and the incurrence or assumption of all other Debt and
repayment of Debt in connection therewith, and such Acquisition Pro Forma shall
reflect that, on a pro forma basis, Borrower is in compliance on a pro forma basis
with the covenants set forth in Article 6 recomputed for the four quarter
period reflected in the Compliance Certificate most recently delivered to
Administrative Agent pursuant to Section 4.1(c) prior to the
consummation of such Permitted Acquisition; provided that for purposes
of this clause (A), (1) the full amount of cash Acquisition Consideration
paid in connection with such Permitted Acquisition shall be included in Total
Debt for purposes of calculating the ratio of Total Debt to Adjusted EBITDA on
a pro forma basis, except to the extent funded with the proceeds of an equity
contribution made to Holdings substantially contemporaneously with such
Permitted Acquisition and (2) the maximum ratio of Total Debt to Adjusted
EBITDA at such time pursuant to Section 6.3 shall be deemed to be the
maximum ratio at such time minus 0.25.

 

(B)           if
requested by Administrative Agent with respect to any Permitted Acquisition for
which the Acquisition Consideration exceeds $10,000,000, updated versions of
the operating plans, budgets and forecasts most recently delivered to
Administrative Agent pursuant to Section 4.1(m) covering the three (3) year
period commencing on the date of 

 

62

 

such
Permitted Acquisition and otherwise prepared in accordance with the
requirements of Section 4.1(m) (the “Acquisition Projections”) and based upon historical financial data
of a recent date reasonably satisfactory to Administrative Agent, taking into
account such Permitted Acquisition, the funding of all Loans and the incurrence
or assumption of all other Debt and repayment of Debt in connection therewith;
and

 

(C)           a
certificate of a Responsible Officer of Borrower to the effect that (w) Holdings and each Subsidiary will be
Solvent upon the consummation of the Permitted Acquisition, (x) the
Acquisition Pro Forma fairly presents in all material respects the financial
condition of Holdings and its Subsidiaries (on a consolidated basis) as of the
date thereof and the periods covered thereby, in each case after giving effect
to the Permitted Acquisition and related transactions, (y) the Acquisition
Projections (if any) represent Borrower’s best estimate of Holdings’ consolidated future
financial performance as of the date thereof and after giving effect to the
Permitted Acquisition, the assumptions contained therein are believed by
Borrower to be fair and reasonable in light of current business conditions and
the Acquisition Projections demonstrate Borrower’s projected compliance with
the covenants set forth in Article 6 for the one-year period immediately
following the consummation of such Permitted Acquisition; provided, that Borrower can give no
assurance that the results reflected in the Acquisition Projections will be
attained; and (z) Holdings and its Subsidiaries have completed their due
diligence investigation with respect to the Target and such Permitted
Acquisition, which investigation was conducted in a manner similar to that
which would have been conducted by a prudent purchaser of a comparable business
and the results of which investigation, to the extent requested, were delivered
to Administrative Agent;

 

(iii)          such
Permitted Acquisition shall only involve assets located in the United States or
Canada (and, in connection with the acquisition of the Capital Stock of a
Target, such Target shall be formed, incorporated or otherwise organized under
the laws of a state within the United States or Canada) and comprising a
business, or those assets of a business, of the type engaged in by Borrower as
of the date hereof and businesses reasonably related thereto, and which
business would not subject Administrative Agent or any Lender to regulatory or
third party approvals in connection with the exercise of its rights and
remedies under this Agreement or any other Financing Documents other than
approvals applicable to the exercise of such rights and remedies with respect
to Borrower prior to such Permitted Acquisition;

 

(iv)          such
Permitted Acquisition shall be consensual, shall have been approved by the
Target’s board of directors (or comparable governing board) and shall be
consummated in accordance with the terms of the agreements and documents
related thereto, and in compliance with all applicable Laws;

 

(v)           no assets
or liabilities (including, without limitation, Investments, Debt and Contingent
Obligations) shall be acquired, incurred, assumed or otherwise be reflected on
a consolidated balance sheet of Holdings
and its Subsidiaries after giving effect to such Permitted Acquisition, except (A) Loans
made hereunder and (B) those assets and liabilities which may be acquired,
incurred or assumed in accordance with the provisions of this Agreement
(including, without limitation, the provisions of Section 5.1, 5.3 and
5.8(a));

 

(vi)          the
business and assets acquired in such Permitted Acquisition shall be free and
clear of all Liens (other than Permitted Liens);

 

63

 

(vii)         at or
prior to the closing of any Permitted Acquisition, Administrative Agent will be
granted a first priority perfected Lien (subject to Permitted Liens) in all
assets acquired pursuant thereto or, as contemplated by Section 4.11, in
the assets and Capital Stock of the Target, and Holdings, its Subsidiaries and
the Target shall have executed such documents and taken such actions as may be
required by Administrative Agent in connection therewith (including the
delivery of (A) certified copies of the resolutions of the board of
directors (or comparable governing board) of Holdings, its Subsidiaries and the
Target authorizing such Permitted Acquisition and the granting of Liens
described herein, (B) legal opinions, in form and substance reasonably
acceptable to Administrative Agent, with respect to the transactions described
herein and (C) evidence of insurance of the business to be acquired
consistent with the requirements of Section 4.4; all amounts payable in
connection with any Permitted Acquisition (including all transaction costs, all
Debt, liabilities and Contingent Obligations incurred or assumed and the
maximum amount of any earn-out or comparable payment obligation in connection
therewith, whether or not reflected on a consolidated balance sheet of Borrower
and Target) (such amounts being referred to collectively as “Acquisition Consideration”)
shall not exceed $10,000,000,
shall not exceed $10,000,000 with respect to all Permitted Acquisitions
consummated during any twelve-month period and shall not exceed $30,000,000 with respect to all
Permitted Acquisitions consummated during
the term hereof;

 

(viii)        on or
prior to the date of such Permitted Acquisition, Administrative Agent shall
have received, in form and substance reasonably satisfactory to Administrative
Agent and if requested by Administrative Agent, (A) all opinions, certificates,
lien search results and other documents reasonably requested by Administrative
Agent and (B) amendments to the Schedules, to the extent necessary to make
the representations and warranties in this Agreement true and correct after
giving effect to the consummation of such Permitted Acquisition; and

 

(ix)           at the
time of such Permitted Acquisition and after giving effect thereto, no Default
or Event of Default has occurred and is continuing.

 

Section 5.9            Transactions
with Affiliates.

 

Except (i) as expressly
permitted by this Agreement, (ii) as otherwise disclosed on Schedule 5.9,
and (iii) for transactions that contain terms that are no less favorable
to Borrower or any Subsidiary, as the case may be, than those which might be
obtained from a third party not an Affiliate of any Credit Party, Borrower will
not, and will not permit any Subsidiary to, directly or indirectly, enter into
or permit to exist any transaction (including the purchase, sale, lease or
exchange of any property or the rendering of any service) with any Affiliate of
Borrower.

 

Section 5.10         Modification
of Organizational Documents.

 

Borrower will not, and will not
permit any Subsidiary to, directly or indirectly, amend
or otherwise modify any Organizational Documents of such Person, except for
such amendments or other modifications required by Law or which are not adverse
to the interests of Administrative Agent or any Lender and which, in each
instance, are fully disclosed to Administrative Agent.

 

64

 

Section 5.11         Modification
of Certain Agreements.

 

Borrower will not, and will not
permit any Subsidiary to, directly or indirectly, amend or otherwise modify any
Acquisition Document, any Equity Document, the Management Agreement which in any case: (i) is contrary
to the terms of this Agreement or any other Financing Document; (ii) could
reasonably be expected to be adverse in any material respect to the rights,
interests or privileges of the Administrative Agent or Lenders or their ability
to enforce the same; (iii) results in the imposition or expansion in any
material respect of any restriction or burden on Borrower or any Subsidiary; (iv) or
reduces in any material respect any rights or benefits of Borrower or any
Subsidiary.  Borrower shall, prior to
entering into any amendment or other modification of any of the foregoing
documents, deliver to Administrative Agent reasonably in advance of the
execution thereof, any final or execution form copy of amendments or other
modifications to such documents.

 

Section 5.12         Fiscal
Year.

 

Borrower will not, and will not
permit any Subsidiary to, change its Fiscal Year; provided, that, prior
to September 30, 2008, Borrower shall change its fiscal year from a fiscal
year ending on December 31 to a fiscal year ending on September 30.

 

Section 5.13         Conduct
of Business.

 

Borrower will not, and will not
permit any Subsidiary to, directly or indirectly, engage in any line of
business other than those businesses engaged in on the date hereof and
described on Schedule 5.13 and businesses reasonably related thereto as
determined by Administrative Agent in its reasonable discretion.

 

Section 5.14         Investor
Fees.

 

Borrower will not, and will not
permit any Subsidiary to, directly or indirectly, pay or become obligated to
pay any management, consulting or similar advisory fees or other amounts to or
for the account of Investor or any Affiliate of Investor.

 

Section 5.15         [Reserved]

 

Section 5.16         Limitation
on Sale and Leaseback Transactions.

 

Borrower will not, and will not
permit any Subsidiary to, directly or indirectly, enter into any arrangement
with any Person whereby in a substantially contemporaneous transaction Borrower
or any Subsidiary sells or transfers all or substantially all of its right,
title and interest in an asset and, in connection therewith, acquires or leases
back the right to use such asset.

 

Section 5.17         Bank
Accounts.

 

Borrower will not, and will not
permit any Subsidiary to, directly or indirectly, establish any new bank
account (excluding any account established after notice to Administrative Agent
exclusively for payroll or petty cash and other bank accounts in which the
amount on deposit in any such account following the Closing Date does not
exceed $50,000 at any time and 

 

65

 

in which the aggregate amount on deposit in
all such bank accounts following the Closing Date does not at any time exceed
$200,000) without the prior written consent of Administrative Agent, and
provided that in each case (unless otherwise agreed to by Administrative
Agent), Administrative Agent, Borrower or such Subsidiary and the bank at which
the account is to be opened enter into a control agreement regarding such bank
account pursuant to which such bank acknowledges the security interest of
Administrative Agent in such bank account, agrees to comply with instructions
originated by Administrative Agent directing disposition of the funds in such
bank account without further consent from Borrower, and agrees to subordinate and
limit any security interest such bank may have in such bank account on terms
satisfactory to Administrative Agent.

 

Section 5.18         Compliance
with Anti-Terrorism Laws.

 

Borrower will not, and will not
permit any Subsidiary to, directly or indirectly, knowingly enter into any
Operative Documents or Material Contracts with any Person listed on the OFAC
Lists.  Borrower shall immediately notify
Administrative Agent if Borrower has knowledge that Borrower, any additional Credit
Party or any of their respective Affiliates or agents acting or benefiting in
any capacity in connection with the transactions contemplated by this Agreement
is or becomes a Blocked Person or (i) is convicted on, (ii) pleads nolo contendere to, (iii) is indicted
on or (iv) is arraigned and held over on charges involving money
laundering or predicate crimes to money laundering.  Borrower will not, and will not permit any
Subsidiary to, directly or indirectly, (i) knowingly conduct any business
or engage in any transaction or dealing with any Blocked Person, including,
without limitation, the making or receiving of any contribution of funds, goods
or services to or for the benefit of any Blocked Person, (ii) knowingly
deal in, or otherwise engage in any transaction relating to, any property or
interests in property blocked pursuant to Executive Order No. 13224, any
similar executive order or other Anti-Terrorism Law, or (iii) engage in or
conspire to engage in any transaction that evades or avoids, or has the purpose
of evading or avoiding, or attempts to violate, any of the prohibitions set
forth in Executive Order No. 13224 or other Anti-Terrorism Law.

 

ARTICLE 6.

FINANCIAL COVENANTS

 

Borrower agrees that, so long as any Credit Exposure exists:

 

Section 6.1            Capital
Expenditures.

 

Borrower will not permit the
aggregate amount of Capital Expenditures for any period set forth below to
exceed the amount set forth below for such period:

 

	
  Period

  	
   

  	
  Amount

  	
   

  
	
  12 month period ending
  September 30, 2008

  	
   

  	
  $

  	
  14,500,000

  	
   

  
	
  2009 Fiscal Year and each
  Fiscal Year thereafter

  	
   

  	
  $

  	
  14,000,000

  	
   

  

 

If Borrower does not utilize
the entire amount of Capital Expenditures permitted in any period set forth
above, Borrower may carry forward to the immediately succeeding period only, 

 

66

 

seventy-five percent (75%)
of such unutilized amount (with Capital Expenditures made by Borrower in such
succeeding period applied last to such carried forward amount).

 

Section 6.2            Fixed
Charge Coverage Ratio.

 

Borrower will not permit the
Fixed Charge Coverage Ratio for the twelve (12) month period ending on any date
set forth below to be less than the ratio set forth below for such date.

 

	
  Date

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  September 30,
  2008

  	
   

  	
  1.00x

  	
   

  
	
  December 31,
  2008

  	
   

  	
  1.00x

  	
   

  
	
  March 31,
  2009

  	
   

  	
  1.10x

  	
   

  
	
  June 30,
  2009

  	
   

  	
  1.10x

  	
   

  
	
  September 30,
  2009

  	
   

  	
  1.10x

  	
   

  
	
  December 31,
  2009

  	
   

  	
  1.10x

  	
   

  
	
  March 31,
  2010

  	
   

  	
  1.10x

  	
   

  
	
  June 30,
  2010

  	
   

  	
  1.10x

  	
   

  
	
  September 30,
  2010

  	
   

  	
  1.10x

  	
   

  
	
  December 31,
  2010 and the last day of each

  fiscal quarter thereafter

  	
   

  	
  1.15x

  	
   

  

 

Section 6.3            Total
Debt to EBITDA Ratio.

 

Borrower will not permit the
ratio of (i) Total Debt on any date set forth below to (ii) Adjusted  EBITDA
for the twelve (12) month period ending on such date to exceed the ratio set
forth below opposite such date:

 

	
  Date

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  June 30, 2008

  	
   

  	
  5.50x

  	
   

  
	
  September 30, 2008

  	
   

  	
  5.50x

  	
   

  
	
  December 31, 2008

  	
   

  	
  5.50x

  	
   

  
	
  March 31, 2009

  	
   

  	
  5.00x

  	
   

  
	
  June 30, 2009

  	
   

  	
  5.00x

  	
   

  
	
  September 30, 2009

  	
   

  	
  4.75x

  	
   

  
	
  December 31, 2009

  	
   

  	
  4.75x

  	
   

  
	
  March 31, 2010

  	
   

  	
  4.75x

  	
   

  
	
  June 30, 2010

  	
   

  	
  4.75x

  	
   

  
	
  September 30, 2010

  	
   

  	
  4.25x

  	
   

  
	
  December 31, 2010

  	
   

  	
  4.25x

  	
   

  
	
  March 31, 2011

  	
   

  	
  4.25x

  	
   

  
	
  June 30, 2011

  	
   

  	
  4.25x

  	
   

  
	
  September 30, 2011

  	
   

  	
  4.00x

  	
   

  
	
  December 31, 2011 and
  the last day of

  each fiscal quarter thereafter

  	
   

  	
  3.75x

  	
   

  

 

67

ARTICLE 7.

CONDITIONS

 

Section 7.1            Conditions to Closing.

 

The obligation
of each Lender to make the initial Loans, of Administrative Agent to issue any
Support Agreements on the Closing Date and of any LC Issuer to issue any Lender
Letter of Credit on the Closing Date shall be subject to the receipt by
Administrative Agent of each agreement, document and instrument set forth on
the Closing Checklist (unless waived by Required Lenders), each in form and
substance reasonably satisfactory to Administrative Agent, and to the
satisfaction of the following conditions precedent, each to the satisfaction of
Administrative Agent and Required Lenders in their sole discretion:

 

(a)           evidence
that Borrower shall have repurchased 100% of the Existing Notes on or prior to
the Closing Date pursuant to the Existing Notes Tender Offer and that such
Existing Notes have been cancelled;

 

(b)           evidence
of the consummation of the transactions (other than the Existing Notes Tender
Offer and the funding of the Loans) contemplated by the Operative Documents,
including without limitation the funding of any and all investments
contemplated by the Subordinated Debt Documents;

 

(c)           the
payment of all fees, expenses and other amounts due and payable under each
Financing Document;

 

(d)           the
absence, since December 31, 2006 of any material adverse change in any
aspect of the business, operations, properties, prospects or financial
condition of any Credit Party, or any event or condition which could reasonably
be expected to result in such a material adverse change;

 

(e)           after
giving effect to the initial funding of Loans and issuance of any Support
Agreements and Lender Letters of Credit on the Closing Date (assuming for
purposes hereof, the payment of the RBS Restricted Payment on the Closing Date)
and the consummation of the transactions contemplated by the Operative
Documents, the aggregate outstanding Revolving Loans and Swingline Loans shall
not exceed $17,000,000 and Letter of Credit Liabilities shall not exceed
$4,000,000;

 

(f)            the
receipt of pro forma financial statements of Holdings and its Consolidated Subsidiaries which evidence, in each
case for the twelve (12) month period for which financial statements are most
recently available, prepared to give effect to the initial funding of Loans,
issuance of any Letters of Credit on the Closing Date and the consummation of
the transactions contemplated by the Operative Documents, and subject to such
adjustments as are deemed reasonably acceptable to Administrative Agent, (i) a
Total Debt to EBITDA Ratio of not more than 4.85 to 1.0, and (ii) a Senior
Debt to EBITDA Ratio of not more than 3.07 to 1.0;

 

(g)           receipt
by Administrative Agent of such other documents, instruments and/or agreements
as Administrative Agent may reasonably request; and

 

68

 

(h)           Borrower
shall have paid to Administrative Agent, for the benefit of Lenders, an amount
with respect to each Lender equal to (i) the sum of such Lender’s
Revolving Loan Commitment Amount plus such Lender’s Term Loan B
Commitment Percentage of the Term Loan B multiplied  by (ii) one-half
of one percent (0.50%) per annum for the period from the date hereof to the
Closing Date.

 

Each Lender,
by delivering its signature page to this Agreement, shall be deemed to
have acknowledged receipt of, and consented to and approved, each Financing
Document, each additional Operative Document and each other document, agreement
and/or instrument required to be approved by Administrative Agent, Required
Lenders or Lenders, as applicable, on the Closing Date.

 

If the Closing
Date shall not have occurred on or prior to February 22, 2008, this
Agreement shall terminate on such date except that the provisions of Articles
9, 10 and 11 shall survive such termination.

 

Section 7.2            Conditions to Each Loan, Support
Agreement and Lender Letter of Credit.

 

The obligation
of Lenders to make a Loan (other than Revolving Loans made pursuant to either
of Section 2.11(b) and/or Section 2.14(c)), of Administrative
Agent to issue any Support Agreement or of any LC Issuer to issue any Lender
Letter of Credit (including, in each case, on the Closing Date) is subject to
the satisfaction of the following additional conditions:

 

(a)           in
the case of a Revolving Loan Borrowing, receipt by Administrative Agent of a
Notice of Borrowing (or telephonic or electronic notice, as permitted by Section 2.8(b)(ii))
in accordance with Section 2.8(b) and, in the case of any Support
Agreement or Lender Letter of Credit, receipt by Administrative Agent of a
Notice of LC Credit Event in accordance with Section 2.14(b);

 

(b)           the
fact that, immediately after such borrowing and after application of the
proceeds thereof or after such issuance, the Revolving Loan Outstandings will
not exceed the Revolving Loan Limit;

 

(c)           the
fact that, immediately before and after such borrowing or issuance, no Default
or Event of Default shall have occurred and be continuing; and

 

(d)           the
fact that the representations and warranties of each Credit Party contained in
the Financing Documents shall be true, correct and complete on and as of the
date of such borrowing or issuance, except to the extent that any such
representation or warranty relates to a specific date in which case such
representation or warranty shall be true and correct as of such earlier date.

 

Each giving of
a Notice of LC Credit Event hereunder, each giving of a Notice of Borrowing
hereunder and each acceptance by Borrower of the proceeds of any Loan made
hereunder shall, except as set forth in the Notice of LC Credit Event or Notice
of Borrowing, be deemed to be a representation and warranty by Borrower on the
date of such notice or acceptance as to the facts specified in
Sections 7.2(b), 7.2(c) and 7.2(d).

 

69

 

ARTICLE 8.

EVENTS OF DEFAULT

 

Section 8.1            Events of Default.

 

For purposes
of the Financing Documents, the occurrence of any of the following conditions
and/or events, whether voluntary or involuntary, by operation of Law or
otherwise, shall constitute an “Event of Default”:

 

(a)           Borrower
shall fail to pay when due any principal, interest, premium or fee under any
Financing Document or any other amount payable under any Financing Document;

 

(b)           Borrower
shall fail to observe or perform any covenant contained in Section 4.1, Section 4.4(b),
Section 4.6, Section 4.7, Section 4.12, Article 5
(excluding Sections 5.2 (solely with respect to non-consensual Liens prohibited
thereunder) and 5.17), or Article 6; or Borrower shall fail to observe or
perform any covenant contained in Section 4.9, 4.10, 4.11, 5.2 (solely
with respect to non-consensual Liens prohibited thereunder) or 5.17 and such
default is not remedied within fifteen (15) days after the earlier of (i) receipt
by Borrower of notice from Administrative Agent or Required Lenders of such
default or (ii) actual knowledge of Borrower or any other Credit Party of
such default;

 

(c)           any
Credit Party defaults in the performance of or compliance with any term
contained in this Agreement or in any other Financing Document (other than
occurrences described in other provisions of this Section 8.1 for which a
different grace or cure period is specified or for which no grace or cure
period is specified and thereby constitute immediate Events of Default) and
such default is not remedied or waived within thirty (30) days after the
earlier of (i) receipt by Borrower of notice from Administrative Agent or
Required Lenders of such default or (ii) actual knowledge of Borrower or
any other Credit Party of such default;

 

(d)           any
representation, warranty, certification or statement made by any Credit Party
or any other Person in any Financing Document or in any certificate, financial
statement or other document delivered pursuant to any Financing Document is
incorrect in any respect (or in any material respect if such representation,
warranty, certification or statement is not by its terms already qualified as
to materiality) when made (or deemed made);

 

(e)           (i) failure
of any Credit Party to pay when due or within any applicable grace period any
principal, interest or other amount on Debt (other than the Loans) or in
respect of any Swap Contract, or the occurrence of any breach, default,
condition or event with respect to any Debt (other than the Loans) or in
respect of any Swap Contract, if the effect of such failure or occurrence is to
cause or to permit the holder or holders of any such Debt, or the counterparty
under any such Swap Contract, to cause Debt or other liabilities having an
individual principal amount in excess of $2,500,000 (or any amount, solely with
respect to Swap Contracts) or having an aggregate principal amount in excess of
$2,500,000 (or any amount, solely with respect to Swap Contracts) to become or
be declared immediately due and payable; or (ii) the occurrence of any breach
or default under any terms or provisions of any Subordinated Debt Document or
under any agreement subordinating the Subordinated Debt to all or any portion
of the Obligations or the occurrence of any event requiring the prepayment of
any Subordinated Debt;

 

70

 

(f)            any
Credit Party shall commence a voluntary case or other proceeding seeking
liquidation, reorganization or other relief with respect to itself or its debts
under any bankruptcy, insolvency or other similar Law now or hereafter in
effect or seeking the appointment of a trustee, receiver, liquidator, custodian
or other similar official of it or any substantial part of its property, or
shall consent to any such relief or to the appointment of or taking possession
by any such official in an involuntary case or other proceeding commenced
against it, or shall make a general assignment for the benefit of creditors, or
shall fail generally to pay its debts as they become due, or shall take any
corporate action to authorize any of the foregoing;

 

(g)           an
involuntary case or other proceeding shall be commenced against any Credit
Party seeking liquidation, reorganization or other relief with respect to it or
its debts under any bankruptcy, insolvency or other similar Law now or
hereafter in effect or seeking the appointment of a trustee, receiver,
liquidator, custodian or other similar official of it or any substantial part
of its property, and such involuntary case or other proceeding shall remain
undismissed and unstayed for a period of sixty (60) days; or an order for
relief shall be entered against any Credit Party under the federal bankruptcy
laws as now or hereafter in effect;

 

(h)           (i) institution
of any steps by any Person to terminate a Pension Plan if as a result of such
termination any Credit Party or any member of the Controlled Group could
reasonably be expected to be required to make a contribution to such Pension
Plan, or could incur a liability or obligation to such Pension Plan, in excess
of $2,500,000, (ii) a
contribution failure occurs with respect to any Pension Plan sufficient to give
rise to a Lien under Section 302(f) of ERISA, or (iii) there
shall occur any withdrawal or partial withdrawal from a Multiemployer Plan and
the withdrawal liability (without unaccrued interest) to Multiemployer Plans as
a result of such withdrawal (including any outstanding withdrawal liability
that any Credit Party or any member of the Controlled Group have incurred on
the date of such withdrawal) exceeds $2,500,000;

 

(i)            one
or more judgments or orders for the payment of money (not paid or fully covered
by insurance maintained in accordance with the requirements of this Agreement
and as to which the relevant insurance company has acknowledged coverage)
aggregating in excess of $2,500,000 shall
be rendered against any or all Credit Parties and either (i) enforcement
proceedings shall have been commenced by any creditor upon any such judgments
or orders or (ii) there shall be any period of twenty (20) consecutive
days during which a stay of enforcement of any such judgments or orders, by
reason of a pending appeal, bond or otherwise, shall not be in effect;

 

(j)            (i) Investors
shall collectively cease to, directly or indirectly, own and control at least (A) 90%
of the outstanding Capital Stock of Parent owned by them on the Closing Date
(after giving effect to the consummation of the transactions contemplated by
the Operative Documents) or (B) that percentage of the outstanding voting
Capital Stock of Parent necessary at all times to elect a majority of the board
of directors (or similar governing body) of Parent and to direct the management
policies and decisions of Parent, (ii) Parent shall cease to, directly or
indirectly, own and control one hundred percent (100%) of each class of the
outstanding Capital Stock of Holdings, (iii) Holdings shall cease to
directly own and control one hundred percent (100%) of each class of the
outstanding Capital Stock of Borrower, (iv) except as a result of any
merger permitted by Section 5.7, Borrower shall cease to, directly or
indirectly, 

 

71

 

own and control one hundred
percent (100%) of each class of the outstanding Capital Stock of each
Subsidiary or (v) any “Change of Control”, “Change in Control”, or terms
of similar import occurs under any Subordinated Debt Document;

 

(k)           any
Lien created by any of the Security Documents shall at any time fail to
constitute a valid and perfected Lien on a material portion of the Collateral
purported to be secured thereby, subject to no prior or equal Lien except
Permitted Liens, or any Credit Party shall so assert;

 

(l)            any
Credit Party shall be prohibited or otherwise materially restrained from
conducting the business theretofore conducted by it by virtue of any casualty,
any labor strike, any determination, ruling, decision, decree or order of any
court or regulatory authority of competent jurisdiction or any other event and
such casualty, labor strike, determination, ruling, decision, decree, order or
other event remains unstayed and in effect for any period of ten (10) days,
and such event, in the opinion of Administrative Agent, shall have a Material
Adverse Effect;

 

(m)          any
of the Operative Documents shall for any reason fail to constitute the valid
and binding agreement of any party thereto, or any such party shall so assert;
or

 

(n)           Either
of Holdings or Palace Finance engages in any type of business activity other
than the ownership of the Capital Stock of Borrower by Holdings, and performance
by each of its obligations under Operative Documents to which it is a party, or
Holdings takes any action which would violate any of the provisions of Articles
4 or 5 hereof (assuming for purposes hereof that each such provision is
expressly binding on Holdings).

 

Section 8.2            Acceleration and Suspension or
Termination of Revolving Loan Commitment.

 

Upon the
occurrence and during the continuance of an Event of Default, Administrative
Agent may, and shall, if so requested by Required Lenders, (i) by notice
to Borrower suspend or terminate the Revolving Loan Commitment and the
obligations of Administrative Agent and Lenders with respect thereto, in whole
or in part (and, if in part, such reduction shall be pro rata among Lenders
having a Revolving Loan Commitment Percentage) and/or (ii) by notice to
Borrower declare all or any portion of the Obligations to be, and such
Obligations shall thereupon become, immediately due and payable, with accrued
interest thereon, without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by Borrower and Borrower will pay the
same; provided that in the case of any of the
Events of Default specified in Section 8.1(f) or 8.1(g) above,
without any notice to Borrower or any other act by Administrative Agent or
Lenders, the Revolving Loan Commitment and the obligations of Administrative
Agent and Lenders with respect thereto shall thereupon terminate and all of the
Obligations shall become immediately due and payable without presentment, demand,
protest or other notice of any kind, all of which are hereby waived by Borrower
and Borrower will pay the same.

 

72

 

Section 8.3            Cash Collateral.

 

If an
Acceleration Event shall have occurred, and so long as it continues, then
without any request or the taking of any other action by Administrative Agent
or Lenders, Borrower shall immediately comply with the provisions of Section 2.14(e) with
respect to the deposit of cash collateral to secure the existing Letter of
Credit Liabilities and future payment of related fees.

 

Section 8.4            Default Rate of Interest and
Suspension of LIBOR Rate Options.

 

At the
election of Administrative Agent or Required Lenders, after the occurrence of
an Event of Default and for so long as it continues, (i) the
Loans and other Obligations shall bear interest at rates that are two percent
(2.0%) in excess of the rates otherwise payable under this Agreement, (ii) the
fee described in Section 2.14(b) shall increase by a rate that is two
percent (2.0%) in excess of the rate otherwise payable under such Section, (iii) as
the Interest Periods for LIBOR Loans then in effect expire, such Loans shall be
converted into Base Rate Loans and (iv) the LIBOR election will not be
available to Borrower and (v) no Interest Period commencing during such
period shall have a term of nine (9) or twelve (12) months.

 

Section 8.5            Setoff Rights.

 

During the
continuance of any Event of Default, each Lender is hereby authorized by
Borrower at any time or from time to time, with reasonably prompt subsequent
notice to Borrower (any prior or contemporaneous notice being hereby expressly
waived) to set off and to appropriate and to apply any and all (i) balances
held by such Lender or any of such Lender’s Affiliates at any of its offices
for the account of Borrower or any of its Subsidiaries (regardless of whether
such balances are then due to Borrower or its Subsidiaries), and (ii) other
property at any time held or owing by such Lender to or for the credit or for
the account of Borrower or any of its Subsidiaries, against and on account of
any of the Obligations; except that no Lender shall exercise any such right
without the prior written consent of Administrative Agent.  Any Lender exercising a right to set off shall
purchase for cash (and the other Lenders shall sell) interests in each of such
other Lender’s Pro Rata Share of the Obligations as would be necessary to cause
all Lenders to share the amount so set off with each other Lender in accordance
with their respective Pro Rata Share of the Obligations.  Borrower agrees, to the fullest extent
permitted by Law, that any Lender or any of such Lender’s Affiliates may
exercise its right to set off with respect to the Obligations as provided in
this Section 8.5.

 

Section 8.6            Application of Proceeds.

 

(a)           As
to Borrower.  Notwithstanding
anything to the contrary contained in this Agreement, upon the occurrence and
during the continuance of an Event of Default, Borrower irrevocably waives the
right to direct the application of any and all payments at any time or times
thereafter received by Administrative Agent from or on behalf of Borrower or
any guarantor of all or any part of the Obligations, and, as between Borrower
on the one hand and Administrative Agent and Lenders on the other,
Administrative Agent shall have the continuing and exclusive right to apply and
to reapply any and all payments received against the Obligations in such manner
as Administrative Agent may deem advisable notwithstanding any previous application
by Administrative Agent.

 

73

 

(b)           After
Event of Default.  Following the
occurrence and continuance of an Event of Default, but absent the occurrence
and continuance of an Acceleration Event, Administrative Agent shall apply any
and all payments received by Administrative Agent in respect of the
Obligations, and any and all proceeds of Collateral received by Administrative
Agent, in such order as Administrative Agent may from time to time elect.  In the absence of any specific election made
by Administrative Agent pursuant to this clause (b), payments and proceeds
received by Administrative Agent pursuant to this clause (b) shall be
applied in the following order: first, to
all fees, costs, indemnities, liabilities, obligations and expenses incurred by
or owing to Administrative Agent with respect to this Agreement, the other
Financing Documents or the Collateral, second, to
all fees, costs, indemnities, liabilities, obligations and expenses incurred by
or owing to any Lender with respect to this Agreement, the other Financing
Documents or the Collateral, third, to
accrued and unpaid interest on the Obligations, fourth,
to the principal amount of the Obligations then due and owing, fifth, to payment of Obligations then due and owing to any
Eligible Swap Counterparty in respect of any Required Swap Contract, sixth, to provide cash collateral
to secure any then outstanding Letter of Credit Liabilities and payment of
related fees; seventh, to provide cash
collateral to secure any other then outstanding Obligations, including
Obligations in respect of Required Swap Contracts; eighth,
to any other indebtedness or obligations of Borrower owing to Administrative
Agent or any Lender under the Financing Documents and ninth,
to provide cash collateral to secure Obligations owing to any Eligible Swap
Counterparty in respect of Swap Contracts other than a Required Swap Contract.

 

(c)           After
Acceleration Event.  Notwithstanding
anything to the contrary contained in this Agreement, if an Acceleration Event
shall have occurred, and so long as it continues, Administrative Agent shall
apply any and all payments received by Administrative Agent in respect of the
Obligations, and any and all proceeds of Collateral received by Administrative
Agent, in the following order: first, to
all fees, costs, indemnities, liabilities, obligations and expenses incurred by
or owing to Administrative Agent with respect to this Agreement, the other
Financing Documents or the Collateral; second, to
all fees, costs, indemnities, liabilities, obligations and expenses incurred by
or owing to any Lender with respect to this Agreement, the other Financing
Documents or the Collateral; third, to
accrued and unpaid interest on the Obligations (including any interest which,
but for the provisions of the Bankruptcy Code, would have accrued on such
amounts); fourth, to the principal
amount of the Obligations outstanding, to provide cash collateral to secure any
and all Letter of Credit Liabilities and future payment of related fees, as
provided for in Section 2.13(e), and
to the Obligations owing to any Eligible Swap Counterparty in respect of any
Required Swap Contract; fifth, to
Obligations owing to any Eligible Swap Counterparty in respect of any Swap
Contracts other than a Required Swap Contract; and sixth,
to any other indebtedness or obligations of Borrower owing to Administrative
Agent or any Lender under the Financing Documents.

 

(d)           Residuary.
 Any balance remaining after giving
effect to the applications set forth in this Section 8.6 shall be
delivered to Borrower or to whoever may be lawfully entitled to receive such
balance or as a court of competent jurisdiction may direct.  In carrying out any of the applications set
forth in this Section 8.6, (i) amounts received shall be applied in
the numerical order provided until exhausted prior to the application to the
next succeeding category and (ii) each of the Persons entitled to receive
a payment or cash collateral in any particular category shall receive an amount
equal to its pro rata share of amounts available to be applied pursuant thereto
for such category.

 

74

 

ARTICLE 9.

EXPENSES AND INDEMNITY

 

Section 9.1            Expenses.

 

Borrower
hereby agrees to promptly pay (i) all reasonable costs and expenses of
Administrative Agent (including without limitation the fees, costs and expenses
of counsel to, and independent appraisers and consultants retained by
Administrative Agent) in connection with the examination, review, due diligence
investigation, documentation, negotiation, closing and syndication of the
transactions contemplated by the Financing Documents, in connection with the
performance by Administrative Agent of its rights and remedies under the
Financing Documents and in connection with the continued administration of the
Financing Documents including (A) any amendments, modifications, consents
and waivers to and/or under any and all Financing Documents and (B) any
periodic public record searches conducted by or at the request of
Administrative Agent (including, without limitation, title investigations, UCC
searches, fixture filing searches, judgment, pending litigation and tax lien
searches and searches of applicable corporate, limited liability, partnership
and related records concerning the continued existence, organization and good
standing of certain Persons), (ii) without limitation of the preceding
clause (i), all costs and expenses of Administrative Agent in connection
with the creation, perfection and maintenance of Liens pursuant to the
Financing Documents, (iii) without limitation of the preceding clause (i),
all costs and expenses of Administrative Agent in connection with (A) protecting,
storing, insuring, handling, maintaining or selling any Collateral, (B) any
litigation, dispute, suit or proceeding relating to any Financing Document, and
(C) any workout, collection, bankruptcy, insolvency and other enforcement
proceedings under any and all of the Financing Documents, (iv) without
limitation of the preceding clause (i), all costs and expenses of
Administrative Agent in connection with Administrative Agent’s reservation of
funds in anticipation of the funding of the initial Loans to be made hereunder,
provided that Borrower or any Affiliate
has requested or consented to such reservation of funds, and (v) all costs
and expenses incurred by Lenders in connection with any litigation, dispute,
suit or proceeding relating to any Financing Document and in connection with
any workout, collection, bankruptcy, insolvency and other enforcement
proceedings under any and all Financing Documents, provided, that to the extent that the costs and expenses
referred to in this clause (v) consist of fees, costs and expenses of
counsel, Borrower shall be obligated to pay such fees, costs and expenses for
one counsel to Administrative Agent (and one local counsel to Administrative
Agent in each jurisdiction) and for only one counsel acting for all Lenders
(other than Administrative Agent).

 

Section 9.2            Indemnity.

 

Borrower hereby
agrees to indemnify, pay and hold harmless Administrative Agent and Lenders and
the officers, directors, employees, trustees, agents, investment advisors,
collateral managers, servicers, and counsel of Administrative Agent and Lenders
(collectively called the “Indemnitees”)
from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, claims, costs, expenses and disbursements
of any kind or nature whatsoever (including the fees and disbursements of one
counsel to the Indemnitees, taken as a whole, and one local counsel to the
Indemnitees taken as a whole in each jurisdiction; provided that if (i) one
or more Indemnitees shall have reasonably concluded that there may be legal
defenses available to it that are different from or in addition to those
available to one or 

 

75

 

more other Indemnitees or (ii) the
representation of the Indemnitees (or any portion thereof) by the same counsel
would be inappropriate due to actual or potential differing interests between
them, then such expenses shall include the fees and disbursements of one
separate counsel to such Indemnitees, taken as a whole, in each relevant
jurisdiction), in connection with any investigative, response, remedial,
administrative or judicial matter or proceeding, whether or not such Indemnitee
shall be designated a party thereto and including any such proceeding initiated
by or on behalf of a Credit Party, and the reasonable expenses of investigation
by engineers, environmental consultants and similar technical personnel and any
commission, fee or compensation claimed by any broker (other than any broker
retained by Administrative Agent or Lenders) asserting any right to payment for
the transactions contemplated hereby, which may be imposed on, incurred by or
asserted against such Indemnitee as a result of or in connection with the
transactions contemplated hereby or by the other Operative Documents (including
(i)(A) as a direct or indirect result of the presence on or under, or
escape, seepage, leakage, spillage, discharge, emission or release from, any
property now or previously owned, leased or operated by a Credit Party or any
other Person of any Hazardous Materials or any Hazardous Materials Contamination,
(B) arising out of or relating to the offsite disposal of any materials
generated or present on any such property or (C) arising out of or
resulting from the environmental condition of any such property or the
applicability of any governmental requirements relating to Hazardous Materials,
whether or not occasioned wholly or in part by any condition, accident or event
caused by any act or omission of any Credit Party, and (ii) proposed and
actual extensions of credit under this Agreement) and the use or intended use
of the proceeds of the Loans and Letters of Credit, except that Borrower shall
have no obligation hereunder to an Indemnitee with respect to any liability
resulting from the gross negligence or willful misconduct of such Indemnitee,
as determined by a final non-appealable judgment of a court of competent
jurisdiction.  To the extent that the
undertaking set forth in the immediately preceding sentence may be
unenforceable, Borrower shall contribute the maximum portion which it is
permitted to pay and satisfy under applicable Law to the payment and
satisfaction of all such indemnified liabilities incurred by the Indemnitees or
any of them.

 

ARTICLE 10.

ADMINISTRATIVE AGENT

 

Section 10.1         Appointment and Authorization.

 

Each Lender
hereby irrevocably appoints and authorizes Administrative Agent to enter into
each of the Financing Documents to which it is a party (other than this
Agreement) on its behalf and to take such actions as Administrative Agent on
its behalf and to exercise such powers under the Financing Documents as are
delegated to Administrative Agent by the terms thereof, together with all such
powers as are reasonably incidental thereto. 
Subject to the terms of Section 11.5 and to the terms of the other
Financing Documents, Administrative Agent is authorized and empowered to amend,
modify, or waive any provisions of this Agreement or the other Financing
Documents on behalf of Lenders.  The
provisions of this Article 10 are solely for the benefit of Administrative
Agent and Lenders and neither Borrower nor any other Credit Party shall have
any rights as a third party beneficiary of any of the provisions hereof.  In performing its functions and duties under
this Agreement, Administrative Agent shall act solely as agent of Lenders and
does not assume and shall not be deemed to have assumed any obligation toward
or relationship of agency or trust with or for Borrower or any other Credit
Party.  Administrative 

 

76

 

Agent may perform any of its duties
hereunder, or under the Financing Documents, by or through its own agents or
employees.

 

Section 10.2         Administrative Agent and Affiliates.

 

Administrative
Agent shall have the same rights and powers under the Financing Documents as
any other Lender and may exercise or refrain from exercising the same as though
it were not Administrative Agent, and Administrative Agent and its Affiliates
may lend money to, invest in and generally engage in any kind of business with
each Credit Party or Affiliate of any Credit Party as if it were not
Administrative Agent hereunder.

 

Section 10.3         Action by Administrative Agent.

 

The duties of
Administrative Agent shall be mechanical and administrative in nature.  Administrative Agent shall not have by reason
of this Agreement a fiduciary relationship in respect of any Lender.  Nothing in this Agreement or any of the
Financing Documents is intended to or shall be construed to impose upon
Administrative Agent any obligations in respect of this Agreement or any of the
Financing Documents except as expressly set forth herein or therein.

 

Section 10.4         Consultation with Experts.

 

Administrative
Agent may consult with legal counsel, independent public accountants and other
experts selected by it and shall not be liable for any action taken or omitted
to be taken by it in good faith in accordance with the advice of such counsel,
accountants or experts.

 

Section 10.5         Liability of Administrative Agent.

 

Neither
Administrative Agent nor any of its directors, officers, agents or employees
shall be liable to any Lender for any action taken or not taken by it in
connection with the Financing Documents, except that Administrative Agent shall
be liable with respect to its specific duties set forth hereunder, but only to
the extent of its own gross negligence or willful misconduct in the discharge
thereof as determined by a final non-appealable judgment of a court of
competent jurisdiction.  Neither
Administrative Agent nor any of its directors, officers, agents or employees
shall be responsible for or have any duty to ascertain, inquire into or verify (i) any
statement, warranty or representation made in connection with any Financing
Document or any borrowing hereunder, (ii) the performance or observance of
any of the covenants or agreements specified in any Financing Document, (iii) the
satisfaction of any condition specified in any Financing Document, (iv) the
validity, effectiveness, sufficiency or genuineness of any Financing Document,
any Lien purported to be created or perfected thereby or any other instrument
or writing furnished in connection therewith, (v) the existence or
non-existence of any Default or Event of Default; or (vi) the financial
condition of any Credit Party. 
Administrative Agent shall not incur any liability by acting in reliance
upon any notice, consent, certificate, statement, or other writing (which may
be a bank wire, telex, facsimile or electronic transmission or similar writing)
believed by it to be genuine or to be signed by the proper party or parties.  Administrative Agent shall not be liable for
any apportionment or distribution of payments made by it in good faith and if
any such apportionment or distribution is subsequently determined to 

 

77

 

have been made in error the
sole recourse of any Lender to whom payment was due but not made, shall be to
recover from other Lenders any payment in excess of the amount to which they
are determined to be entitled (and such other Lenders hereby agree to return to
such Lender any such erroneous payments received by them).

 

Section 10.6         Indemnification.

 

Each Lender
shall, in accordance with its Pro Rata Share, indemnify Administrative Agent
(to the extent not reimbursed by Borrower) upon demand against any cost,
expense (including counsel fees and disbursements), claim, demand, action, loss
or liability (except such as result from Administrative Agent’s gross
negligence or willful misconduct as determined by a final non-appealable
judgment of a court of competent jurisdiction) that Administrative Agent may
suffer or incur in connection with the Financing Documents or any action taken
or omitted by Administrative Agent hereunder or thereunder.  If any indemnity furnished to Administrative
Agent for any purpose shall, in the opinion of Administrative Agent, be
insufficient or become impaired, Administrative Agent may call for additional
indemnity and cease, or not commence, to do the acts indemnified against even
if so directed by Required Lenders until such additional indemnity is furnished.

 

Section 10.7         Right to Request and Act on
Instructions.

 

Administrative
Agent may at any time request instructions from Lenders with respect to any
actions or approvals which by the terms of this Agreement or of any of the
Financing Documents Administrative Agent is permitted or desires to take or to
grant, and if such instructions are promptly requested, Administrative Agent
shall be absolutely entitled to refrain from taking any action or to withhold
any approval and shall not be under any liability whatsoever to any Person for
refraining from any action or withholding any approval under any of the
Financing Documents until it shall have received such instructions from
Required Lenders or all or such other portion of Lenders as shall be prescribed
by this Agreement.  Without limiting the
foregoing, no Lender shall have any right of action whatsoever against
Administrative Agent as a result of Administrative Agent acting or refraining
from acting under this Agreement or any of the other Financing Documents in
accordance with the instructions of Required Lenders or Required Revolving
Lenders (or all or such other portion of Lenders as shall be prescribed by this
Agreement) and, notwithstanding the instructions of Required Lenders or
Required Revolving Lenders (or such other applicable portion of Lenders),
Administrative Agent shall have no obligation to take any action if it
believes, in good faith, that such action would violate applicable Law or
exposes Administrative Agent to any liability for which it has not received
satisfactory indemnification in accordance with the provisions of Section 10.6.

 

Section 10.8         Credit Decision.

 

Each Lender
acknowledges that it has, independently and without reliance upon
Administrative Agent or any other Lender, and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. 
Each Lender also acknowledges that it will, independently and without reliance
upon Administrative Agent or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking any action under the Financing
Documents.

 

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Section 10.9         Collateral Matters.

 

Lenders
irrevocably authorize Administrative Agent, at its option and in its
discretion, to (i) release any Lien granted to or held by Administrative
Agent under any Security Document (A) upon termination of the Revolving
Loan Commitment and payment in full of all Obligations, the expiration,
termination or cash collateralization (to the satisfaction of Administrative
Agent) of all Letters of Credit and, to the extent required by Administrative
Agent in its sole discretion, the expiration, termination or cash
collateralization (to the satisfaction of Administrative Agent) of all Swap
Contracts secured, in whole or in part, by any Collateral, or (B) constituting
property sold or disposed of as part of or in connection with any disposition
permitted under any Financing Document (it being understood and agreed that
Administrative Agent may conclusively rely without further inquiry on a
certificate of a Responsible Officer as to the sale or other disposition of
property being made in full compliance with the provisions of the Financing
Documents) and (ii) release or subordinate any Lien granted to or held by
Administrative Agent under any Security Document constituting property
described in Section 5.2(c) (it being understood and agreed that
Administrative Agent may conclusively rely without further inquiry on a
certificate of a Responsible Officer as to the identification of any property
described in Section 5.2(c)).  Upon
request by Administrative Agent at any time, Lenders will confirm
Administrative Agent’s authority to release and/or subordinate particular types
or items of Collateral pursuant to this Section 10.9.

 

Section 10.10       Agency for Perfection.

 

Administrative
Agent and each Lender hereby appoint each other Lender as agent for the purpose
of perfecting Administrative Agent’s security interest in assets which, in
accordance with the Uniform Commercial Code in any applicable jurisdiction, can
be perfected by possession or control. 
Should any Lender (other than Administrative Agent) obtain possession or
control of any such assets, such Lender shall notify Administrative Agent
thereof, and, promptly upon Administrative Agent’s request therefor, shall
deliver such assets to Administrative Agent or in accordance with Administrative
Agent’s instructions or transfer control to Administrative Agent in accordance
with Administrative Agent’s instructions. 
Each Lender agrees that it will not have any right individually to
enforce or seek to enforce any Security Document or to realize upon any
Collateral for the Loans unless instructed to do so by Administrative Agent (or
consented to by Administrative Agent, as provided in Section 8.5), it
being understood and agreed that such rights and remedies may be exercised only
by Administrative Agent.

 

Section 10.11       Notice of Default.

 

Administrative
Agent shall not be deemed to have knowledge or notice of the occurrence of any
Default or Event of Default except with respect to defaults in the payment of
principal, interest and fees required to be paid to Administrative Agent for
the account of Lenders, unless Administrative Agent shall have received written
notice from a Lender or Borrower referring to this Agreement, describing such
Default or Event of Default and stating that such notice is a “notice of
default”.  Administrative Agent will
notify each Lender of its receipt of any such notice.  Administrative Agent shall take such action
with respect to such Default or Event of Default as may be requested by
Required Lenders, or Required Revolving Lenders (or all or such other portion
of Lenders as shall be prescribed by this Agreement) in 

 

79

 

accordance with the terms
hereof.  Unless and until Administrative
Agent has received any such request, 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 or in
the best interests of Lenders.

 

Section 10.12       Successor Administrative Agent.

 

Administrative
Agent may at any time give notice of its resignation to Lenders, Swingline
Lender and Borrower.  Upon receipt of any
such notice of resignation, Required Lenders shall have the right, in
consultation with Borrower, to appoint a successor Administrative Agent.  Upon the acceptance of a successor’s
appointment as Administrative Agent hereunder and notice of such acceptance to
the retiring Administrative Agent, such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring
(or retired) Administrative Agent, the retiring Administrative Agent’s
resignation shall become immediately effective and the retiring Administrative
Agent shall be discharged from all of its duties and obligations hereunder and
under the other Financing Documents (if such resignation was not already
effective and such duties and obligations not already discharged, as provided
below in this paragraph).  The fees
payable by Borrower to a successor Administrative Agent shall be the same as
those payable to its predecessor unless otherwise agreed between Borrower and
such successor.  If no such successor
shall have been so appointed by Required Lenders and shall have accepted such
appointment within thirty (30) days after the retiring Administrative Agent
gives notice of its resignation, then the retiring Administrative Agent may on
behalf of Lenders and Swingline Lender (but without any obligation) appoint a
successor Administrative Agent.  From and
following the expiration of such thirty (30) day period, Administrative Agent
shall have the exclusive right, upon one (1) Business Days’ notice to
Borrower and Lenders, to make its resignation effective immediately.  From and following the effectiveness of such
notice, (i) the retiring Administrative Agent shall be discharged from its
duties and obligations hereunder and under the other Financing Documents and (ii) all
payments, communications and determinations provided to be made by, to or
through Administrative Agent shall instead be made by or to each Lender and
Swingline Lender directly, until such time as Required Lenders appoint a
successor Administrative Agent as provided for above in this paragraph.  The provisions of this Agreement shall
continue in effect for the benefit of any retiring Administrative Agent and its
sub-agents after the effectiveness of its resignation hereunder and under the
other Financing Documents in respect of any actions taken or omitted to be
taken by any of them while the retiring Administrative Agent was acting or was
continuing to act as Administrative Agent.

 

Section 10.13       Disbursements of Revolving Loans;
Payment and Sharing of Payment.

 

(a)           Revolving
Loan Advances, Payments and Settlements; Interest and Fee Payments.

 

(i)            Administrative
Agent shall have the right, on behalf of Revolving Lenders to disburse funds to
Borrower for all Revolving Loans requested or deemed requested by Borrower
pursuant to the terms of this Agreement regardless of whether the conditions
precedent set forth in Section 7.2 are then satisfied, including the
existence of any Default or Event of Default either before or after giving
effect to the making of such Revolving Loans; provided,
that Administrative Agent shall not advance any Revolving Loan pursuant to this

 

80

 

clause (i) if, to the
knowledge of Administrative Agent, the Revolving Loan Outstandings exceed the
Revolving Loan Limit, either before or after giving effect to the making of any
proposed Revolving Loan.  Administrative
Agent shall be conclusively entitled to assume, for purposes of the preceding
sentence, that each Revolving Lender will fund its Pro Rata Share of all
Revolving Loans requested by Borrower. 
Each Revolving Lender shall reimburse Administrative Agent on demand, in
accordance with the provisions of the immediately following paragraph, for all
funds disbursed on its behalf by Administrative Agent pursuant to the first
sentence of this clause (i), or if Administrative Agent so requests, each
Revolving Lender will remit to Administrative Agent its Pro Rata Share of any
Revolving Loan before Administrative Agent disburses the same to Borrower.  If Administrative Agent elects to require
that each Revolving Lender make funds available to Administrative Agent, prior
to a disbursement by Administrative Agent to Borrower, Administrative Agent
shall advise each Revolving Lender by telephone, facsimile or e-mail of the
amount of such Revolving Lender’s Pro Rata Share of the Revolving Loan requested
by Borrower no later than noon (Chicago time) on the date of funding of such
Revolving Loan, and each such Revolving Lender shall pay Administrative Agent
on such date such Revolving Lender’s Pro Rata Share of such requested Revolving
Loan, in same day funds, by wire transfer to the Payment Account, or such other
account as may be identified by Administrative Agent to Revolving Lenders from
time to time.  If any Lender fails to pay
the amount of its Pro Rata Share within one (1) Business Day after Administrative
Agent’s demand, Administrative Agent shall promptly notify Borrower, and
Borrower shall immediately repay such amount to Administrative Agent.  Any repayment required by Borrower pursuant
to this Section 10.13 shall be accompanied by accrued interest thereon
from and including the date such amount is made available to Borrower to but
excluding the date of payment at the rate of interest then applicable to
Revolving Loans which are Base Rate Loans. 
Nothing in this Section 10.13 or elsewhere in this Agreement or the
other Financing Documents shall be deemed to require Administrative Agent to
advance funds on behalf of any Lender or to relieve any Lender from its
obligation to fulfill its commitments hereunder or to prejudice any rights that
Administrative Agent or Borrower may have against any Lender as a result of any
default by such Lender hereunder.

 

(ii)           On
a Business Day of each week as selected from time to time by Administrative
Agent, or more frequently (including daily), if Administrative Agent so elects
(each such day being a “Settlement Date”),
Administrative Agent will advise each Revolving Lender by telephone, facsimile
or e-mail of the amount of each such Revolving Lender’s percentage interest of
the Revolving Loan balance as of the close of business of the Business Day
immediately preceding the Settlement Date. 
In the event that payments are necessary to adjust the amount of such
Revolving Lender’s actual percentage interest of the Revolving Loan balance to
such Lender’s required percentage interest of the Revolving Loan balance as of
any Settlement Date, the party from which such payment is due shall pay
Administrative Agent, without setoff or discount, to the Payment Account not
later than noon (Chicago time) on the Business Day following the Settlement
Date the full amount necessary to make such adjustment.  Any obligation arising pursuant to the
immediately preceding sentence shall be absolute and unconditional and shall
not be affected by any circumstance whatsoever. 
In the event settlement shall not have occurred by the date and time
specified in the second preceding sentence, interest shall accrue on the
unsettled amount at the Federal Funds Rate, for the first three (3) days
following the scheduled date of settlement, and thereafter at the Base Rate
plus the Base Rate Margin applicable to Revolving Loans.

 

81

 

(iii)          On
each Settlement Date, Administrative Agent shall advise each Revolving Lender
by telephone, facsimile or e-mail of the amount of such Revolving Lender’s
percentage interest of principal, interest and fees paid for the benefit of
Revolving Lenders with respect to each applicable Revolving Loan, to the extent
of such Revolving Lender’s Revolving Loan Exposure with respect thereto, and
shall make payment to such Revolving Lender not later than noon (Chicago time)
on the Business Day following the Settlement Date of such amounts in accordance
with wire instructions delivered by such Revolving Lender to Administrative Agent,
as the same may be modified from time to time by written notice to
Administrative Agent; provided,
that, in the case such Revolving Lender is a Defaulted Lender, Administrative
Agent shall be entitled to set off the funding short-fall against that Defaulted
Lender’s respective share of all payments received from Borrower.

 

(iv)          On
the Closing Date, Administrative Agent, on behalf of Lenders, may elect to
advance to Borrower the full amount of the initial Loans to be made on the
Closing Date prior to receiving funds from Lenders, in reliance upon each
Lender’s commitment to make its Pro Rata Share of such Loans to Borrower in a
timely manner on such date.  If
Administrative Agent elects to advance the initial Loans to Borrower in such
manner, Administrative Agent shall be entitled to receive all interest that
accrues on the Closing Date on each Lender’s Pro Rata Share of such Loans
unless Administrative Agent receives such Lender’s Pro Rata Share of such Loans
by 3:00 p.m. (Chicago time) on the Closing Date.

 

(v)           The
provisions of this Section 10.13(a) shall be deemed to be binding
upon Administrative Agent and Lenders notwithstanding the occurrence of any
Default or Event of Default, or any insolvency or bankruptcy proceeding
pertaining to Borrower or any other Credit Party.

 

(b)           Term
Loan B Payments.  Payments of
principal, interest and fees in respect of Term Loan B will be settled on the
date of receipt if received by Administrative Agent on the last Business Day of
a month or on the Business Day immediately following the date of receipt if
received on any day other than the last Business Day of a month.

 

(c)           Return
of Payments.

 

(i)            If
Administrative Agent pays an amount to a Lender under this Agreement in the
belief or expectation that a related payment has been or will be received by
Administrative Agent from Borrower and such related payment is not received by
Administrative Agent, then Administrative Agent will be entitled to recover
such amount from such Lender on demand without setoff, counterclaim or
deduction of any kind, together with interest accruing on a daily basis at the
Federal Funds Rate.

 

(ii)           If
Administrative Agent determines at any time that any amount received by
Administrative Agent under this Agreement must be returned to Borrower or paid
to any other Person pursuant to any insolvency Law or otherwise, then,
notwithstanding any other term or condition of this Agreement or any other
Financing Document, Administrative Agent will not be required to distribute any
portion thereof to any Lender.  In
addition, each Lender will repay to Administrative Agent on demand any portion
of such amount that Administrative Agent has distributed to such Lender,
together with interest at such rate, if any, as Administrative Agent 

 

82

 

is required to pay to Borrower
or such other Person, without setoff, counterclaim or deduction of any kind.

 

(d)           Defaulted
Lenders.  The failure of any Defaulted Lender to make
any Revolving Loan or any payment required by it hereunder shall not relieve
any other Lender of its obligations to make such Revolving Loan or payment, but
neither any other Lender nor Administrative Agent shall be responsible for the
failure of any Defaulted Lender to make a Revolving Loan or make any other
payment required hereunder. 
Notwithstanding anything set forth herein to the contrary, a Defaulted
Lender shall not have any voting or consent rights under or with respect to any
Financing Document or constitute a “Lender” (or be included in the calculation
of “Required Lenders” or “Required Revolving Lenders” hereunder) for any voting
or consent rights under or with respect to any Financing Document.

 

(e)           Sharing
of Payments.  If any Lender shall
obtain any payment or other recovery (whether voluntary, involuntary, by
application of setoff or otherwise) on account of any Loan (other than pursuant
to the terms of Sections 2.12(f)(v) or Section 2.19) in excess of its
pro rata share of payments entitled pursuant to the other provisions of this Section 10.13,
such Lender shall purchase from the other Lenders such participations in
extensions of credit made by such other Lenders (without recourse,
representation or warranty) as shall be necessary to cause such purchasing
Lender to share the excess payment or other recovery ratably with each of them;
provided, however, that if all or
any portion of the excess payment or other recovery is thereafter required to
be returned or otherwise recovered from such purchasing Lender, such portion of
such purchase shall be rescinded and each Lender which has sold a participation
to the purchasing Lender shall repay to the purchasing Lender the purchase
price to the ratable extent of such return or recovery, without interest.  Borrower agrees that any Lender so purchasing
a participation from another Lender pursuant to this clause (e) may, to
the fullest extent permitted by Law, exercise all its rights of payment
(including pursuant to Section 8.5) with respect to such participation as
fully as if such Lender were the direct creditor of Borrower in the amount of
such participation.  If under any
applicable bankruptcy, insolvency or other similar Law, any Lender receives a
secured claim in lieu of a setoff to which this clause (e) applies, such
Lender shall, to the extent practicable, exercise its rights in respect of such
secured claim in a manner consistent with the rights of Lenders entitled under
this clause (e) to share in the benefits of any recovery on such secured
claim.

 

Section 10.14       Right to Perform, Preserve and Protect.

 

If any Credit
Party fails to perform any obligation hereunder or under any other Financing
Document, Administrative Agent itself may, but shall not be obligated to, cause
such obligation to be performed at Borrower’s expense.  Administrative Agent is further authorized by
Borrower and Lenders to make expenditures from time to time which
Administrative Agent, in its reasonable business judgment, deems necessary or
desirable to (i) preserve or protect the business conducted by Borrower,
the Collateral, or any portion thereof and/or (ii) enhance the likelihood
of, or maximize the amount of, repayment of the Loans and other
Obligations.  Borrower hereby agrees to
reimburse Administrative Agent on demand for any and all costs, liabilities and
obligations incurred by Administrative Agent pursuant to this Section 10.14.  Each Lender hereby agrees to indemnify
Administrative Agent upon demand for any and all costs, liabilities and
obligations incurred by Administrative Agent pursuant to this Section 10.14,
in accordance with the provisions of Section 10.6.

 

83

 

Section 10.15       Additional Titled Agents.

 

Except for
rights and powers, if any, expressly reserved under this Agreement to any
bookrunner, arranger or to any titled agent named on the cover page of
this Agreement, other than Administrative Agent (collectively, the “Additional Titled Agents”), and except for
obligations, liabilities, duties and responsibilities, if any, expressly
assumed under this Agreement by any Additional Titled Agent, no Additional
Titled Agent, in such capacity, has any rights, powers, liabilities, duties or
responsibilities hereunder or under any of the other Financing Documents.  Without limiting the foregoing, no Additional
Titled Agent shall have nor be deemed to have a fiduciary relationship with any
Lender.  At any time that any Lender
serving (or whose Affiliate is serving) as an Additional Titled Agent shall
have transferred to any other Person (other than any Affiliates) all of its
interests in the Loans and in the Revolving Loan Commitment, such Person shall
be deemed to have concurrently resigned as such Additional Titled Agent.

 

Section 10.16       Funding and Settlement Provisions
Applicable When Non-Funding Revolving Lenders Exist.

 

So long as
Required Revolving Lenders have not waived the conditions to the funding of
Revolving Loans set forth in Section 7.2 (nor waived an Event of Default
for purposes of satisfying such conditions), any Revolving Lender may deliver a
notice to each of Administrative Agent and Swingline Lender stating that such
Revolving Lender shall cease making Revolving Loans due to the non-satisfaction
of one or more conditions to funding Revolving Loans set forth in Section 7.2,
and specifying any such non-satisfied conditions.  Any Revolving Lender delivering any such
notice shall become a non-funding Revolving Lender (a “Non-Funding Revolving
Lender”) for purposes of this Agreement commencing on the Business Day
following receipt by Administrative Agent and Swingline Lender of such notice,
and shall cease to be a Non-Funding Revolving Lender on the date on which (i) such
Revolving Lender has either revoked the effectiveness of such notice or
acknowledged in writing to each of Administrative Agent and Swingline Lender
the satisfaction of the condition(s) specified in such notice, or (ii) Required
Revolving Lenders waive the conditions to the funding of such Revolving Loans
set forth in Section 7.2 giving rise to such notice by Non-Funding
Revolving Lender.  Each Non-Funding
Revolving Lender shall remain a Revolving Lender for purposes of this Agreement
to the extent that such Non-Funding Revolving Lender has Revolving Loans
Outstanding in excess of zero; provided, that
during any period of time that any Non-Funding Revolving Lender exists, and
notwithstanding any provision to the contrary set forth herein, the following
provisions shall apply:

 

(a)           For
purposes of determining the Pro Rata Share of each Revolving Lender under clause
(v) of the definition of such term, each Non-Funding Revolving Lender
shall be deemed to have a Revolving Loan Commitment Amount as in effect
immediately before such Revolving Lender became a Non-Funding Revolving Lender.

 

(b)           Except
as provided in clause (a) above, the Revolving Loan Commitment Amount of
each Non-Funding Revolving Lender shall be deemed to be zero.

 

(c)           The
Revolving Loan Commitment at any date of determination during such period shall
be deemed to be equal to the sum of (i) the aggregate Revolving Loan 

 

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Commitment Amounts of all Revolving Lenders,
other than the Non-Funding Revolving Lenders as of such date, plus (ii) the
aggregate Revolving Loan Outstandings of all Non-Funding Revolving Lenders as
of such date.

 

(d)           Administrative
Agent shall have no right to make or disburse Revolving Loans for the account
of any Non-Funding Revolving Lender pursuant to Section 10.13, or to
assume that any Non-Funding Revolving Lender will fund its Pro Rata Share of
any Revolving Loans requested by Borrower during such period.

 

(e)           Administrative
Agent shall have no right to make or disburse Revolving Loans for the account
of any Non-Funding Revolving Lender pursuant to Section 2.8(c) to pay
interest, fees, expenses and other charges of any Credit Party, other than
reimbursement obligations that have arisen pursuant to either Section 2.11
and/or Section 2.14(c) in respect of Letters of Credit issued at the
time such Non-Funding Revolving Lender was not then a Non-Funding Revolving
Lender.

 

(f)            Administrative
Agent shall have no right to make or disburse Revolving Loans as provided in Section 2.8(c) for
the account of any Revolving Lender that was a Non-Funding Revolving Lender at
the time that Swingline Lender advanced a Swingline Loan, and Swingline Lender
shall have no right to assume that any Revolving Lender that was a Non-Funding
Revolving Lender at the time that the Swingline Lender advanced a Swingline
Loan will fund any portion of such Swingline Loan pursuant to Section 2.11(b).  In addition, no Revolving Lender that was a
Non-Funding Revolving Lender at the time that the Swingline Lender advanced a
Swingline Loan shall have an obligation to fund the Payment Account for the
benefit of the Swingline Lender in respect of such Swingline Loan or purchase
any interest or participation in respect of such Swingline Loan pursuant to Section 2.11(c).

 

(g)           Administrative
Agent shall have no right to (i) make or disburse Revolving Loans as
provided in Section 2.8(c) for the account of any Revolving Lender
that was a Non-Funding Revolving Lender at the time of issuance of any Letter
of Credit for which funding or reimbursement obligations have arisen pursuant
to Section 2.14(c), or (ii) assume that any Revolving Lender that was
a Non-Funding Revolving Lender at the time of issuance of such Letter of Credit
will fund any portion of the Revolving Loans to be funded pursuant to Section 2.14(c) in
respect of such Letter of Credit.  In
addition, no Revolving Lender that was a Non-Funding Revolving Lender at the
time of issuance of any Letter of Credit for which funding or reimbursement
obligations have arisen pursuant to Section 2.14(c), shall have an
obligation to fund any portion of the Revolving Loans to be funded pursuant to Section 2.14(c) in
respect to such Letter of Credit, or to make any payment to Administrative
Agent or the L/C Issuer, as applicable, under Section 2.14(f)(ii) in
respect of such Letter of Credit, or be deemed to have purchased any interest
or participation in such Letter of Credit from Administrative Agent or the L/C
Issuer, as applicable, under Section 2.14(f)(i).

 

(h)           To
the extent that Administrative Agent applies proceeds of Collateral or other
payments received by Administrative Agent to repayment of Revolving Loans
pursuant to Section 8.6, such payments and proceeds shall be applied first
in respect of Revolving Loans made at the time any Non-Funding Revolving
Lenders exist, and second in respect of all other outstanding Revolving
Loans.

 

85

 

ARTICLE 11.

MISCELLANEOUS

 

Section 11.1         Survival.

 

All
agreements, representations and warranties made herein and in every other
Financing Document shall survive the execution and delivery of this Agreement
and the other Financing Documents and the other Operative Documents.  The provisions of Sections 2.18 and 2.19
and Articles 9, 10 and 11 shall survive the payment of the Obligations
(both with respect to any Lender and all Lenders collectively) and any
termination of this Agreement.

 

Section 11.2         No Waivers.

 

No failure or
delay by Administrative Agent or any Lender in exercising any right, power or
privilege under any Financing Document shall operate as a waiver thereof nor
shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or privilege.  The rights and remedies herein and therein
provided shall be cumulative and not exclusive of any rights or remedies
provided by Law.  Any reference in any
Financing Document to the “continuing” nature of any Event of Default shall not
be construed as establishing or otherwise indicating that Borrower or any other
Credit Party has the independent right to cure any such Event of Default, but
is rather presented merely for convenience should such Event of Default be
waived in accordance with the terms of the applicable Financing Documents.

 

Section 11.3         Notices.

 

(a)           All
notices, requests and other communications to any party hereunder shall be in
writing (including prepaid overnight courier, facsimile transmission, e-mail,
electronic submissions or similar writing) and shall be given to such party at
its address, facsimile number or e-mail address set forth on the signature pages hereof
(or, in the case of any such Lender who becomes a Lender after the date hereof,
in an Assignment Agreement or in a notice delivered to Borrower and
Administrative Agent by the assignee Lender forthwith upon such assignment) or
at such other address, facsimile number or e-mail address as such party may
hereafter specify for the purpose by notice to Administrative Agent and
Borrower; provided, that notices,
requests or other communications shall be permitted by e-mail or other
electronic submissions only in accordance with the provisions of Section 11.3(b).  Each such notice, request or other
communication shall be effective (i) if given by facsimile, when such
notice is transmitted to the facsimile number specified by this Section and
the sender receives a confirmation of transmission from the sending facsimile
machine, (ii) if given by e-mail or other electronic submissions, as set
forth in Section 11.3(c) or (iii) if given by mail, prepaid
overnight courier or any other means, when received at the applicable address
specified by this Section.

 

(b)           Notices
and other communications to the parties hereto may be delivered or furnished by
electronic communication (including e-mail and Internet or intranet websites) provided, that (i) the foregoing
shall not apply to notices sent directly to any party hereto if such party has
notified Administrative Agent that it has elected not to receive notices by
electronic communication (which election may be limited to particular notices)
and (ii) no Notices of Borrowing, Notices of LC Credit Event or any
notices regarding request for advances hereunder 

 

86

 

shall be permitted to be delivered or
furnished by Borrower by electronic communication unless made in accordance
with specific procedures approved from time to time by Administrative Agent.

 

(c)           Unless
the Administrative Agent otherwise prescribes, (i) notices
and other communications sent to an e-mail address shall be deemed received
upon the sender’s receipt of an acknowledgment from the intended recipient
(such as by the “return receipt requested” function, as available, return
e-mail or other written acknowledgment), and (ii) notices or
communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that such
notice or communication is available and identifying the website address
therefor, provided, that if any
such notice or other communication is not sent or posted during normal business
hours, such notice or communication shall be deemed to have been sent at the
opening of business on the next Business Day.

 

Section 11.4         Severability.

 

In case any
provision of or obligation under this Agreement or any other Financing Document
shall be invalid, illegal or unenforceable in any jurisdiction, the validity,
legality and enforceability of the remaining provisions or obligations, or of
such provision or obligation in any other jurisdiction, shall not in any way be
affected or impaired thereby.

 

Section 11.5         Amendments and Waivers.

 

(a)           General
Provisions.  No provision of this
Agreement or any other Financing Document may be amended, waived or otherwise
modified unless such amendment, waiver or other modification is in writing and
is signed or otherwise approved by Borrower and Required Lenders (and, if (i) any
amendment, waiver or other modification would either increase a Lender’s
Revolving Loan Commitment Amount or increase a Lender’s funding obligations in
respect of Term Loan B by such Lender, and (ii) the rights or duties of
Administrative Agent, LC Issuer and/or Swingline Lender are affected thereby,
by Administrative Agent, LC Issuer and/or Swingline Lender, as the case may
be); provided that no such
amendment, waiver or other modification shall, unless signed or otherwise
approved in writing by all Lenders directly affected thereby (A) reduce
the principal of, rate of interest on or any fees with respect to any Loan or
Reimbursement Obligation or forgive any principal, interest or fees with
respect to any Loan or Reimbursement Obligation; (B) postpone the date
fixed for, or waive, any payment (other than a payment pursuant to Section 2.3)
of principal of any Loan, or of any Reimbursement Obligation or of interest on
any Loan or any Reimbursement Obligation or any fees  hereunder or postpone the date of termination of the
commitment of any Lender hereunder; (C) change the definition of the term
Required Lenders or the percentage of Lenders which shall be required for
Lenders to take any action hereunder; (D) release all or substantially all
of the Collateral, authorize Borrower or any other Credit Party to sell or
otherwise dispose of all or substantially all of the Collateral or release any
guarantor of all or any portion of the Obligations of its Guarantee obligations
with respect thereto, except, in each case with respect to this clause (D), as
otherwise may be provided in this Agreement or the other Financing Documents
(including in connection with any disposition permitted hereunder); (E) amend,
waive or otherwise modify this Section 11.5(a) or the definitions of
the terms used in this Section 11.5(a) insofar as the definitions
affect the substance of this Section 11.5(a); (F) consent to the 

 

87

 

assignment, delegation or other
transfer by any Credit Party of any of its rights and obligations under any
Financing Document or release Borrower or any other Credit Party of its payment
obligations under any Financing Document, except, in each case with respect to
this clause (F), pursuant to a merger or consolidation permitted pursuant to
this Agreement; or (G) amend, waive or otherwise modify Section 8.6(b).  It is hereby understood and agreed that all
Lenders shall be deemed directly affected by an amendment, waiver or other
modification of the type described in the preceding clauses (C), (D), (E) and
(F) of the preceding sentence (excluding, in the case of any amendment,
waiver or other modification of the type described in the preceding clauses (D) and
(F), any Lender which is also a holder of Subordinated Debt if such Lender’s
then outstanding principal amount of Subordinated Debt exceeds 25% of the sum
of (1) such Lender’s then outstanding 
principal amount of Subordinated Debt plus (2) the sum of such
Lender’s Revolving Commitment Amount (or, if the Revolving Commitments have
been terminated, such Lender’s then existing Revolving Loan Outstandings) plus
such Lenders then outstanding principal amount of Term Loan B).  Notwithstanding anything to the contrary set
forth in this Section 11.5(a), Required Revolving Lenders are authorized,
in their sole and absolute discretion, and without the consent of Required
Lenders, to waive (x) any and all conditions to the funding of Revolving
Loans set forth in Section 7.2 and/or (y) any Event of Default solely
for the purpose of satisfying one or more conditions to the funding of
Revolving Loans set forth in Section 7.2.

 

(b)           Required
Revolving Lender Consent Rights. 
Without limitation of the provisions of the preceding clause Section 11.5(a),
no amendment, waiver or other modification to this Agreement shall, unless
signed by Required Revolving Lenders, (i) amend, waive or otherwise modify
Section 2.6 or the definitions of the terms used in Section 2.6
insofar as the definitions affect the substance of such Section, (ii) change
the definition of the term Required Revolving Lenders or the percentage of
Lenders which shall be required for Required Revolving Lenders to take any
action hereunder or (iii) amend, waive or otherwise modify this Section 11.5(b) or
the definitions of the terms used in this Section 11.5(b) insofar as
the definitions affect the substance of this Section 11.5(b).

 

(c)           Term
Loan B Lender Consent Rights. 
Without limitation of the provisions of the preceding clause (a), no
amendment, waiver or other modification to this Agreement shall, unless signed
by Lenders holding more than sixty-six and two-thirds percent (66-2/3%)
or more of the outstanding principal balance of Term Loan B (provided,
that such percentage shall be reduced from “sixty-six and two-thirds percent
(66-2/3%)” to “fifty percent (50%)” at any time if, at
such time, no Lender, together with its Affiliates and Approved Funds, holds
more than thirty-eight percent (38%) of the outstanding principal balance of
Term Loan B), (i) modify the third sentence of Section 2.5(a) or
(ii) amend, waive or otherwise modify this Section 11.5(c) or
the definitions of the terms used in this Section 11.5(c) insofar as
the definitions affect the substance of this Section 11.5(c).

 

(d)           Eligible
Swap Counterparty Consent Rights. 
Without limitation of the provisions of the preceding clause (a), no
waiver, amendment or other modification to this Agreement shall, unless signed
by each Eligible Swap Counterparty then in existence, modify the provisions of Section 8.6
in any manner adverse to the interests of each such Eligible Swap Counterparty.

 

88

 

Section 11.6         Assignments; Participations;
Replacement of Lenders.

 

(a)           Assignments.

 

(i)            Any
Lender may at any time following the Closing Date, assign to one or more
Eligible Assignees all or any portion of such Lender’s Loans and interest in
the Revolving Loan Commitment, together with all related obligations of such
Lender hereunder.  Except as
Administrative Agent may otherwise agree, the amount of any such assignment
(determined as of the date of the applicable Assignment Agreement or, if a “Trade
Date” is specified in such Assignment Agreement, as of such Trade Date) shall
be in a minimum aggregate amount equal to $1,000,000 or, if less, the assignor’s entire interests in the
Revolving Loan Commitment and outstanding Loans; provided, that,
in connection with simultaneous assignments to two or more related Approved
Funds, such Approved Funds shall be treated as one assignee for purposes of
determining compliance with the minimum assignment size referred to above.  Borrower and Administrative Agent shall be
entitled to continue to deal solely and directly with such Lender in connection
with the interests so assigned to an Eligible Assignee until Administrative
Agent shall have received and accepted an effective Assignment Agreement
executed, delivered and fully completed by the applicable parties thereto, such
other information regarding such Eligible Assignee as Administrative Agent
reasonably shall require and a processing fee of $3,500 (at which time
Administrative Agent shall record such assignment in accordance with clause (iii) below);
provided, no processing fee shall be payable in connection with an assignment to
a Lender, an Affiliate of a Lender or an Approved Fund; provided, further,
only one processing fee shall be payable in connection with simultaneous
assignments to two or more related Approved Funds.

 

(ii)           From
and after the date on which the conditions described above have been met, (A) such
Eligible Assignee shall be deemed automatically to have become a party hereto
and, to the extent of the interests assigned to such Eligible Assignee pursuant
to such Assignment Agreement, shall have the rights and obligations of a Lender
hereunder and (B) the assigning Lender, to the extent that rights and
obligations hereunder have been assigned by it pursuant to such Assignment
Agreement, shall be released from its rights and obligations hereunder (other
than those that survive termination pursuant to Section 11.1).  Upon the request of the Eligible Assignee
(and, as applicable, the assigning Lender) pursuant to an effective Assignment
Agreement, Borrower shall execute and deliver to Administrative Agent for
delivery to the Eligible Assignee (and, as applicable, the assigning Lender)
Notes in the aggregate principal amount of the Eligible Assignee’s percentage
interest in the Revolving Loan Commitment plus the principal amount of the
Eligible Assignee’s Term Loan B (and, as applicable, Notes in the principal
amount of that portion of the Revolving Loan Commitment retained by the
assigning Lender plus the principal amount of Term Loan B retained by the
assigning Lender).  Upon receipt by the
assigning Lender of such Note, the assigning Lender shall return to Borrower
any prior Note held by it.

 

(iii)          Administrative
Agent, acting solely for this purpose as an agent of Borrower, shall maintain
at its offices located in Chicago, Illinois a copy of each Assignment Agreement
delivered to it and a register for the recordation of the names and addresses
of each Lender, and the commitments of, and principal amount of the Loans owing
to, such Lender pursuant to the terms hereof. 
The entries in such register shall be conclusive, and Borrower,
Administrative Agent and Lenders may treat each Person whose name is recorded
therein 

 

89

 

pursuant to the terms hereof as a Lender hereunder for all purposes of
this Agreement, notwithstanding notice to the contrary.  Such register shall be available for
inspection by Borrower and any Lender, at any reasonable time upon reasonable
prior notice to Administrative Agent.

 

(iv)          Notwithstanding
the foregoing provisions of this Section 11.6(a) or any other
provision of this Agreement, any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement and
the other Financing Documents to secure obligations of such Lender, including
any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment
shall release such Lender from any of its obligations hereunder or substitute
any such pledgee or assignee for such Lender as a party hereto.

 

(v)           Notwithstanding
the foregoing provisions of this Section 11.6(a) or any other
provision of this Agreement, Administrative Agent has the right, but not the
obligation, to effectuate assignments of Loans and Revolving Loan Commitments
via an electronic settlement system acceptable to Administrative Agent as
designated in writing from time to time to Lenders by Administrative Agent (the
“Settlement Service”).  At any time when Administrative Agent elects,
in its sole discretion, to implement such Settlement Service, each such
assignment shall be effected by the assigning Lender and proposed assignee
pursuant to the procedures then in effect under the Settlement Service, which
procedures shall be consistent with the other provisions of this Section 11.6(a).  Each assigning Lender and proposed Eligible
Assignee shall comply with the requirements of the Settlement Service in
connection with effecting any assignment of Loans and Revolving Loan
Commitments pursuant to the Settlement Service. 
With the prior approval of each of Administrative Agent and Borrower, as
applicable, Administrative Agent’s and Borrower’s approval of such Eligible
Assignee shall be deemed to have been automatically granted with respect to any
transfer effected through the Settlement Service.  Assignments and assumptions of the Loans and
Revolving Loan Commitments shall be effected by the provisions otherwise set
forth herein until Administrative Agent notifies Lenders of the Settlement
Service as set forth herein.

 

(b)           Participations.

 

Any Lender may
at any time following the Closing Date, without the consent of, or notice to,
Borrower or Administrative Agent, sell to one or more Persons participating
interests in its Loans, commitments or other interests hereunder (any such
Person, a “Participant”).  In the event of a sale by a Lender of a
participating interest to a Participant, (i) such Lender’s obligations
hereunder shall remain unchanged for all purposes, (ii) Borrower and
Administrative Agent shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations hereunder and (iii) all
amounts payable by Borrower shall be determined as if such Lender had not sold
such participation and shall be paid directly to such Lender.  No Participant shall have any direct or
indirect voting rights hereunder except with respect to any event described in Section 11.5
expressly requiring the unanimous vote of all Lenders or, as applicable, all
affected Lenders.  Borrower agrees that
if amounts outstanding under this Agreement are due and payable (as a result of
acceleration or otherwise), each Participant shall be deemed to have the right
of set-off in respect of its participating interest in amounts owing under this
Agreement and with respect to any Letter of Credit to the same extent as if the
amount of its participating interest were owing directly to it as a Lender
under 

 

90

 

this Agreement; provided that
such right of set-off shall be subject to the obligation of each Participant to
share with Lenders, and Lenders agree to share with each Participant, as
provided in Section 8.5.

 

(c)           Replacement
of Lenders.

 

Within thirty
(30) days after (i) receipt by Administrative Agent of notice and demand
from any Lender for payment of additional costs as provided in Sections 2.12(f)(v) or
Section 2.19, which demand shall not have been revoked, (ii) Borrower
is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.18, (iii) any
Lender is a Defaulted Lender, and the circumstances causing such status shall
not have been cured or waived; or (iv) any failure by any Lender to
consent to a requested amendment, waiver or modification to any Financing
Document in which Required Lenders have already consented to such amendment,
waiver or modification but the consent of each Lender, or each Lender affected
thereby, is required with respect thereto, (each relevant Lender in the
foregoing clauses (i) through (iv) being an “Affected  Lender”)
each of Borrower and Administrative Agent may, at its option, notify such
Affected Lender and, in the case of Borrower election, the Administrative
Agent, of such Person’s intention to obtain, at Borrower’s expense, a
replacement Lender (“Replacement Lender”)
for such Lender, which Replacement Lender shall be an Eligible Assignee
and, in the event the Replacement Lender is to replace an Affected Lender
described in the preceding clause (iv), such Replacement Lender consents to the
requested amendment, waiver or modification making the replaced Lender an
Affected Lender.  In the event Borrower
or Administrative Agent, as applicable, obtains a Replacement Lender within
ninety (90) days following notice of its intention to do so, the Affected
Lender shall sell, at par, and assign all of its Loans and funding commitments
hereunder to such Replacement Lender in accordance with the procedures set
forth in Section 11.6(a); provided,
that (A) Borrower shall have, as applicable, reimbursed such Lender
for its increased costs and additional payments for which it is entitled to
reimbursement under any of Sections 2.12(f)(v), 2.18 or Section 2.19, as
applicable, of this Agreement through the date of such sale and assignment and (B) Borrower
shall pay to Administrative Agent the $3,500 processing fee in respect of such
assignment.  In the event that a replaced
Lender does not execute an Assignment Agreement pursuant to Section 11.6(a) within
five (5) Business Days after receipt by such replaced Lender of notice of
replacement pursuant to this Section 11.6(c) and presentation to such
replaced Lender of an Assignment Agreement evidencing an assignment pursuant to
this Section 11.6(c), such replaced Lender shall be deemed to have
consented to the terms of such Assignment Agreement, and any such Assignment
Agreement executed by Administrative Agent, the Replacement Lender and, to the
extent required pursuant to Section 11.6(a), Borrower, shall be effective
for purposes of this Section 11.6(c) and Section 11.6(a). Upon
any such assignment and payment, such replaced Lender shall no longer
constitute a “Lender” for purposes hereof, other than with respect to such
rights and obligations that survive termination as set forth in Section 11.1.

 

(d)           Credit
Party Assignments.

 

No Credit
Party may assign, delegate or otherwise transfer any of its rights or other
obligations hereunder or under any other Financing Document without the prior
written consent of Administrative Agent and each Lender.

 

91

 

Section 11.7         Headings.

 

Headings and
captions used in the Financing Documents (including the Exhibits, Schedules and
Annexes hereto and thereto) are included for convenience of reference only and
shall not be given any substantive effect.

 

Section 11.8         Confidentiality.

 

Administrative
Agent and each Lender shall hold all non-public information regarding the
Credit Parties and their respective businesses identified as such by Borrower
and obtained by Administrative Agent or any Lender pursuant to the requirements
hereof in accordance with such Person’s customary procedures for handling
information of such nature, except that disclosure of such information may be
made (i) to their respective agents, employees, Subsidiaries, Affiliates,
attorneys, auditors, professional consultants, rating agencies, insurance
industry associations and portfolio management services, (ii) to
prospective transferees or purchasers of any interest in the Loans, and to
prospective contractual counterparties (or the professional advisors thereto) in Swap Contracts
permitted hereby, provided that any such Persons shall have agreed to be bound
by the provisions of this Section 11.8, (iii) as required by Law,
subpoena, judicial order or similar order and in connection with any
litigation, (iv) as may be required in connection with the examination,
audit or similar investigation of such Person and (v) to a Person that is
a trustee, investment advisor, collateral manager, servicer, noteholder or
secured party in a Securitization (as hereinafter defined) in connection with
the administration, servicing and reporting on the assets serving as collateral
for such Securitization. For the purposes of this Section, “Securitization”
shall mean a public or private offering by a Lender or any of its Affiliates or
their respective successors and assigns, of Capital Stock or Debt securities
which represent an interest in, or which are collateralized, in whole or in
party, by the Loans.  Confidential
information shall include only such information identified as such at the time
provided to Administrative Agent and shall not include information that either (A) is
in the public domain, or becomes part of the public domain after disclosure to
such Person through no fault of such Person, or (B) is disclosed to such
Person by a Person other than a Credit Party, provided Administrative Agent
does not have actual knowledge that such Person is prohibited from disclosing
such information.  The obligations of
Administrative Agent and Lenders under this Section 11.8 shall supersede
and replace the obligations of Administrative Agent and Lenders under any
confidentiality agreement in respect of this financing executed and delivered
by Administrative Agent or any Lender prior to the date hereof.

 

Section 11.9         WAIVER OF CONSEQUENTIAL AND OTHER
DAMAGES.

 

TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER SHALL NOT ASSERT, AND
HEREBY WAIVES, ANY CLAIM AGAINST ANY INDEMNITEE, ON ANY THEORY OF LIABILITY,
FOR SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES (AS OPPOSED TO DIRECT
OR ACTUAL DAMAGES) ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF THIS
AGREEMENT, ANY OTHER FINANCING DOCUMENT OR ANY AGREEMENT OR INSTRUMENT
CONTEMPLATED HEREBY OR THEREBY, THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY, ANY LOAN OR LETTER OF CREDIT OR THE USE OF THE PROCEEDS THEREOF.  NO INDEMNITEE SHALL BE LIABLE FOR ANY DAMAGES
ARISING FROM THE USE 

 

92

 

BY
UNINTENDED RECIPIENTS OF ANY INFORMATION OR OTHER MATERIALS DISTRIBUTED BY IT
THROUGH TELECOMMUNICATIONS, ELECTRONIC OR OTHER INFORMATION TRANSMISSION
SYSTEMS IN CONNECTION WITH THIS AGREEMENT OR THE OTHER FINANCING DOCUMENTS OR
THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

Section 11.10       Marshaling; Payments Set Aside.

 

Neither
Administrative Agent nor any Lender shall be under any obligation to marshal
any assets in payment of any or all of the Obligations.  To the extent that Borrower makes any payment
or Administrative Agent enforces its Liens or Administrative Agent or any
Lender exercises its right of set-off, and such payment or the proceeds of such
enforcement or set-off is subsequently invalidated, declared to be fraudulent
or preferential, set aside, or required to be repaid by anyone, then to the
extent of such recovery, the Obligations or part thereof originally intended to
be satisfied, and all Liens, rights and remedies therefore, shall be revived
and continued in full force and effect as if such payment had not been made or
such enforcement or set-off had not occurred.

 

Section 11.11       GOVERNING LAW; SUBMISSION TO
JURISDICTION.

 

THIS
AGREEMENT, EACH NOTE AND EACH OTHER FINANCING DOCUMENT, AND ALL MATTERS
RELATING HERETO OR THERETO OR ARISING THEREFROM (WHETHER SOUNDING IN CONTRACT
LAW, TORT LAW OR OTHERWISE), SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD
TO CONFLICTS OF LAWS PRINCIPLES.  BORROWER HEREBY CONSENTS TO THE JURISDICTION
OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE BOROUGH OF MANHATTAN, CITY OF
NEW YORK, STATE OF NEW YORK AND IRREVOCABLY AGREES THAT, SUBJECT TO
ADMINISTRATIVE AGENT’S ELECTION, ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE OTHER FINANCING DOCUMENTS SHALL BE LITIGATED
IN SUCH COURTS.  BORROWER EXPRESSLY
SUBMITS AND CONSENTS TO THE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY
DEFENSE OF FORUM NON CONVENIENS. 
BORROWER HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND
AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE UPON BORROWER BY
CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO BORROWER
AT THE ADDRESS SET FORTH IN THIS AGREEMENT AND SERVICE SO MADE SHALL BE
COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN POSTED.

 

Section 11.12       WAIVER OF JURY TRIAL.

 

EACH OF
BORROWER, ADMINISTRATIVE AGENT AND LENDERS HEREBY IRREVOCABLY WAIVES ANY AND
ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THE FINANCING DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY
AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED 

 

93

 

BEFORE A
COURT AND NOT BEFORE A JURY.  EACH OF
BORROWER, ADMINISTRATIVE AGENT AND EACH LENDER ACKNOWLEDGES THAT THIS WAIVER IS
A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS
RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THE OTHER FINANCING
DOCUMENTS, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED
FUTURE DEALINGS.  EACH OF BORROWER,
ADMINISTRATIVE AGENT AND EACH LENDER WARRANTS AND REPRESENTS THAT EACH HAS HAD
THE OPPORTUNITY OF REVIEWING THIS JURY WAIVER WITH LEGAL COUNSEL, AND THAT EACH
KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS.

 

Section 11.13       Publication; Advertisement.

 

(a)           Publication.  No Credit Party will directly or indirectly
publish, disclose or otherwise use in any public disclosure, advertising
material, promotional material, press release or interview, any reference to
the name, logo or any trademark of Merrill Lynch or Bank of Ireland or any of
their respective Affiliates or any reference to this Agreement or the financing
evidenced hereby, in any case except (i) as required by Law, subpoena or
judicial or similar order, in which case the applicable Credit Party shall give
Administrative Agent prior written notice of such publication or other
disclosure or (ii) with Merrill Lynch’s or Bank of Ireland’s prior written
consent, as applicable.

 

(b)           Advertisement.  Each Lender and
each Credit Party hereby authorizes Merrill Lynch (with Bank of Ireland’s
consent, not to be unreasonably withheld or delayed) to publish the name of
such Lender and Credit Party, the existence of the financing arrangements
referenced under this Agreement, the primary purpose and/or structure of those
arrangements, the amount of credit extended under each facility, the title and
role of each party to this Agreement, and the total amount of the financing
evidenced hereby in any “tombstone”, comparable advertisement or press release
which Merrill Lynch elects to submit for publication.  In addition, each Lender and each Credit
Party agrees that Merrill Lynch (with Bank of Ireland’s consent, not to be
unreasonably withheld or delayed) may provide lending industry trade
organizations with information necessary and customary for inclusion in league
table measurements after the Closing Date. 
With respect to any of the foregoing, Merrill Lynch shall provide
Borrower with an opportunity to review and confer with Merrill Lynch regarding
the contents of any such tombstone, advertisement or information, as
applicable, prior to its submission for publication and, following such review
period, Merrill Lynch may, from time to time, publish such information in any
media form desired by Merrill Lynch, until such time that Borrower shall have
requested Merrill Lynch cease any such further publication.

 

Section 11.14       Counterparts; Integration.

 

This Agreement
and the other Financing Documents may be signed in any number of counterparts,
each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument.  Signatures by facsimile shall bind the
parties hereto.  This Agreement and the
other Financing Documents constitute the entire agreement and understanding
among the parties hereto and supersede any and all prior agreements and
understandings, oral or written, relating to the subject matter hereof.

 

94

 

Section 11.15       No Strict Construction.

 

The parties
hereto have participated jointly in the negotiation and drafting of this
Agreement.  In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the parties hereto and no presumption or burden of
proof shall arise favoring or disfavoring any party by virtue of the authorship
of any provisions of this Agreement.

 

Section 11.16       USA PATRIOT Act Notification.

 

Administrative
Agent (for itself and not on behalf of any Lender) and each Lender hereby
notifies Borrower that pursuant to the requirements of the USA PATRIOT Act, it
is required to obtain, verify and record certain information and documentation
that identifies Borrower, which information includes the name and address of
Borrower and such other information that will allow Administrative Agent or
such Lender, as applicable, to identify Borrower in accordance with the USA
PATRIOT Act.

 

95

 

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

 

	
   

  	
  FESTIVAL FUN PARKS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: Russell D. Owens

  
	
   

  	
   

  	
  Title: CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address: 4590 MacArthur Boulevard

  
	
   

  	
   

  	
   

  	
  Suite 400

  
	
   

  	
   

  	
   

  	
  Newport Bach, California 92660

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile number: (949) 797-9809

  
	
   

  	
   

  	
  E-mail Address:ROwens@PalaceEnterainment.com

  
	
   

  	
   

  	
  Taxpayer Identification Number: 77-0486724

  
	
   

  	
   

  	
   

  
	
   

  	
  Borrower’s Account Designation:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Bank of America

  
	
   

  	
   

  	
  ABA No.:

  	
   

  
	
   

  	
   

  	
  Account No.:

  	
   

  
	
   

  	
   

  	
  Account Name:

  	
   

  
	
   

  	
   

  	
  Reference:

  	
   

  
								

 

S-1

 

	
   

  	
  MERRILL LYNCH BUSINESS FINANCIAL 

  SERVICES INC., as Administrative Agent and a

  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:  Jason J. Swanson

  
	
   

  	
   

  	
  Title:  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:  222 N. LaSalle
  Street, 16th Floor

  
	
   

  	
   

  	
                  Chicago,
  Illinois  60601

  
	
   

  	
   

  	
                  Attn:  Account Manager for Festival 

           Fun Parks transaction

  
	
   

  	
   

  	
  Facsimile number: (312) 750-6147

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile number: (949) 797-9809

  
	
   

  	
   

  	
  E-mail Address:ROwens@PalaceEnterainment.com

  
	
   

  	
   

  	
  Taxpayer Identification Number: 77-0486724

  
	
   

  	
   

  	
  E-Mail Address:garett.gilles@ge.com

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  With a copy to:

  
	
   

  	
   

  
	
   

  	
  Merrill Lynch Capital

  222 N. LaSalle Street, 16th Floor

  Chicago, Illinois  60601

  Attn:  Group Senior Transaction
  Attorney, 

  Corporate Finance, for Festival Fun Parks 

  transaction

  Facsimile number:  (312)
  499-3126

  
	
   

  	
   

  
	
   

  	
  With an additional copy to:

  
	
   

  	
   

  
	
   

  	
  General Electric Capital Corporation

  201 Merritt Seven 

  Norwalk, CT 06851

  Attention:              Sobia Khaliq

  E-Mail Address:  sobia.khaliq@ge.com

  Telephone:            203-956-4775

  
	
   

  	
   

  
	
   

  	
  And with an additional copy to:

  
	
   

  	
   

  
	
   

  	
  LATHAM & WATKINS, LLP

  
	
   

  	
   

  
	
   

  	
   

  	
  Address: 233 South Wacker Drive

  
	
   

  	
   

  	
   

  	
  5800 Sears Tower

  
	
   

  	
   

  	
   

  	
  Chicago, IL 60606

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile number:  (312)
  993-9767

  
	
   

  	
   

  	
  E-Mail Address: 
  james.doran@lw.com

  

 

S-2

 

	
   

  	
  Payment Account Designation:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ABA No.:

  	
   

  
	
   

  	
   

  	
  Account No.:

  	
   

  
	
   

  	
   

  	
  Account Name:

  	
   

  
						

 

S-3

 

	
   

  	
  THE GOVERNOR AND COMPANY OF THE

  BANK OF IRELAND, as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: Deirdre Reddan

  
	
   

  	
   

  	
  Title: Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address: 3A Head Office

  
	
   

  	
   

  	
   

  	
  Baggot Street

  
	
   

  	
   

  	
   

  	
  Dublin 2

  
	
   

  	
   

  
	
   

  	
  Facsimile number:

  	
   

  
	
   

  	
  E-Mail Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: Geraldine Hannon

  
	
   

  	
   

  	
  Title: Authorized Signatory

  
						

 

S-4

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NATIXIS, as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:  Patric Lager

  
	
   

  	
   

  	
  Title:  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address: 1251 Avenue of the Americas

  
	
   

  	
   

  	
   

  	
  New York, NY 10020

  
	
   

  	
   

  	
  Facsimile number: 
  (212)354-9106

  
	
   

  	
   

  	
  E-Mail Address: 
  patric.lager@nativis.com

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:  Gerardo Canet

  
	
   

  	
   

  	
  Title:  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address: 1251 Avenue of the Americas

  
	
   

  	
   

  	
   

  	
  New York, NY 10020

  
	
   

  	
   

  	
  Facsimile number: 
  (212)354-9106

  
	
   

  	
   

  	
  E-Mail Address: 
  gerry.canet@nativis.com

  

 

S-5

 

	
   

  	
  GENERAL ELECTRIC CAPITAL 

  CORPORATION, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:  John C. Bambach

  
	
   

  	
   

  	
  Title:  Duly Authorized
  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address: 201 Merritt Seven

  
	
   

  	
   

  	
   

  	
  Norwalk, CT 06851

  
	
   

  	
   

  	
  Facsimile number:  203-956-4543

  
	
   

  	
   

  	
  E-Mail Address:john.bambach@ge.com

  

 

 

Annex A

 

Commitment Annex

(as of the Closing Date)

 

	
  Lender

  	
   

  	
  Revolving Loan

  Commitment

  Amount

  	
   

  	
  Revolving Loan

  Commitment

  Percentage

  	
   

  	
  Term Loan B

  Commitment

  Amount

  	
   

  	
  Term Loan B

  Commitment

  Percentage

  	
   

  
	
  Merrill Lynch Business Financial Services
  Inc.

  	
   

  	
  $

  	
  15,050,000

  	
   

  	
  37.625

  	
  %

  	
  $

  	
  28,200,000

  	
   

  	
  27.783251232

  	
  %

  
	
  The Governor and Company of the Bank of
  Ireland

  	
   

  	
  $

  	
  15,050,000

  	
   

  	
  37.625

  	
  %

  	
  $

  	
  28,200,000

  	
   

  	
  27.783251232

  	
  %

  
	
  Natixis

  	
   

  	
  $

  	
  0

  	
   

  	
  0

  	
  %

  	
  $

  	
  20,000,000

  	
   

  	
  19.704433497

  	
  %

  
	
  General Electric Capital Corporation

  	
   

  	
  $

  	
  9,900,000

  	
   

  	
  24.75

  	
  %

  	
  $

  	
  25,100,000

  	
   

  	
  24.729064039

  	
  %

  
	
  TOTALS

  	
   

  	
  $

  	
  40,000,000

  	
   

  	
  100

  	
  %

  	
  $

  	
  101,500,000

  	
   

  	
  100

  	
  %

  

 

Annex A-1

 

Annex B

 

Closing Checklist

 

Annex B-1

 

	
  

  	
  Exhibit A to Credit Agreement
  (Assignment Agreement)

  

 

This
Assignment Agreement (this “Assignment
Agreement”) is entered into as of
                    
by and between the Assignor named on the signature page hereto (“Assignor”) and the Assignee named on the
signature page hereto (“Assignee”).  Reference is made to the Credit Agreement
dated as of February     , 2008 (as amended or
otherwise modified from time to time, the “Credit
Agreement”) among Festival Fun Parks, LLC (“Borrower”), the financial institutions
party thereto from time to time, as Lenders, and Merrill Lynch Business
Financial Services Inc., as Administrative Agent.  Capitalized terms used herein and not
otherwise defined shall have the meanings assigned to them in the Credit
Agreement.

 

Assignor and
Assignee hereby agree as follows:

 

1.             Assignor hereby sells and assigns
to Assignee, and Assignee hereby purchases and assumes from Assignor, the
interests set forth on the schedule attached hereto (the “Schedule”), in and to Assignor’s rights and
obligations under the Credit Agreement as of the effective date set forth on
the Schedule (the “Effective  Date”). 
Such purchase and sale is made without recourse, representation or
warranty except as expressly set forth herein. 
On the Effective Date, Assignee shall pay to Assignor an amount equal to
the aggregate amounts assigned pursuant to the Schedule (exclusive of unfunded
portions of the Revolving Loan Commitment) and Assignor shall pay to Assignee a
closing fee in respect of the transactions contemplated hereby in the amount
specified on the Schedule.

 

2.             Assignor (i) represents that
as of the Effective Date, that it is the legal and beneficial owner of the
interests assigned hereunder free and clear of any adverse claim, (ii) makes
no other representation or warranty and assumes no responsibility with respect
to any statement, warranties or representations made in or in connection with
the Credit Agreement or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Agreement, any other Financing
Documents or any other instrument or document furnished pursuant thereto, and (iii) makes
no representation or warranty and assumes no responsibility with respect to the
financial condition of any other Credit Party or any other Person or the
performance or observance by any Credit Party of its Obligations under the
Credit Agreement or any other Financing Documents or any other instrument or
document furnished pursuant thereto.

 

3.             Assignee (i) confirms that it
has received a copy of the Credit Agreement and the other Financing Documents,
together with copies of the most recent financial statements delivered pursuant
thereto and such other documents and information as it has deemed appropriate
to make its own credit analysis and decision to enter into this Assignment
Agreement, (ii) agrees that it will, independently and without reliance
upon Administrative Agent, Assignor or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Credit
Agreement, (iii) appoints and authorizes Administrative Agent to take such
action as agent on its behalf and to exercise such powers under the Credit
Agreement and the other Financing Documents as are delegated to Administrative
Agent by the terms thereof, together with such powers as are reasonably
incidental thereto, (iv) agrees that it will perform in 

 

Exhibit A-1

 

accordance
with their terms all obligations which by the terms of the Credit Agreement are
required to be performed by it as a Lender, (v) represents that on the
date of this Assignment Agreement it is not presently aware of any facts that
would cause it to make a claim under the Credit Agreement, (vi) represents
and warrants that Assignee is not a Foreign Lender or, if it is a Foreign
Lender, (A) that it has delivered to Administrative Agent the
documentation required to be delivered to Administrative Agent by Section 13
below and (B) that if it is 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”, (w) it is not a “bank” within
the meaning of Section 881(c)(3)(A) of the Code, (x) it is not a
10-percent shareholder of any Credit Party within the meaning of Section 881(c)(3)(B) or
Section 871(h)(3)(B) of the Code, (y) it is not a controlled
foreign corporation related to any Credit Party within the meaning of Section  881(c)(3)(C) of
the Code and (z) it is not a conduit entity participating in a conduit
financing arrangement (as defined in Section 1.881-3 of the Code Treasury
Regulations), (vii) represents and warrants that Assignee is (or, upon
receipt of the required consents hereto by Administrative Agent, Swingline
Lender and Borrower will become) an Eligible Assignee and (viii) represents
and warrants that it has experience and expertise in the making or the
purchasing of loans such as the Loans, and that it has acquired the interests
described herein for its own account and without any present intention of
selling all or any portion of such interests.

 

4.             Each of Assignor and Assignee
represents and warrants to the other party hereto that it has full power and
authority to enter into this Assignment Agreement and to perform its
obligations hereunder in accordance with the provisions hereof, that this
Assignment Agreement has been duly authorized, executed and delivered by such
party and that this Assignment Agreement constitutes a legal, valid and binding
obligation of such party, enforceable against such party in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting
creditors’ rights generally and by general principles of equity.

 

5.             Upon the effectiveness of this
Assignment Agreement pursuant to Section 13 below, (i) Administrative
Agent shall register Assignee as a Lender, pursuant to the terms of the Credit
Agreement, (ii) Assignee shall be a party to the Credit Agreement and, to
the extent provided in this Assignment Agreement, have the rights and
obligations of a Lender thereunder, (iii) Assignor shall, to the extent
provided in this Assignment Agreement, relinquish its rights and be released
from its obligations under the Credit Agreement and (iv) Administrative
Agent shall thereafter make all payments in respect of the interest assigned
hereby (including payments of principal, interest, fees and other amounts) to
Assignee.  Assignor and Assignee shall
make all appropriate adjustments in payments for periods prior to the Effective
Date by Administrative Agent or with respect to the making of this assignment
directly between themselves.

 

6.             Each of Assignor and Assignee
hereby agrees from time to time, upon request of the other such party hereto,
to take such additional actions and to execute and deliver such additional
documents and instruments as such other party may reasonably request to effect
the transactions contemplated by, and to carry out the intent of, this
Assignment Agreement.

 

7.             Neither this Assignment Agreement
nor any term hereof may be changed, waived, discharged or terminated, except by
an instrument in writing signed by the party (including, if applicable, any
party required to evidence its consent to or acceptance of this 

 

Exhibit A-2

 

Assignment
Agreement) against whom enforcement of such change, waiver, discharge or
termination is sought.

 

8.             For the purposes hereof and for
purposes of the Credit Agreement, the notice address of Assignee shall be as
set forth on the Schedule.  Any notice or
other communication herein required or permitted to be given shall be in
writing and delivered in accordance with the notice provisions of the Credit
Agreement.

 

9.             In case any provision in or
obligation under this Assignment Agreement shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of
the remaining provisions or obligations, or of such provision or obligation in
any other jurisdiction, shall not in any way be affected or impaired thereby.

 

10.           THIS ASSIGNMENT AGREEMENT SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK,
WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

 

11.           This Assignment Agreement shall be
binding upon, and shall inure to the benefit of, the parties hereto and their
respective successors and assigns.

 

12.           This Assignment Agreement may be
signed in any number of counterparts, each of which shall be an original, with
the same effect as if the signatures hereto were upon the same agreement.

 

13.           This Assignment Agreement shall
become effective as of the Effective Date upon the satisfaction of each of the
following conditions:  (i) the
execution of a counterpart hereof by each of Assignor and Assignee, (ii) the
execution of a counterpart hereof by each of Administrative Agent and Borrower
as evidence of its consent
hereto to the extent required pursuant to Section 11.6(a) of the
Credit Agreement, (iii) the receipt by Administrative Agent of the
processing fee referred to in Section 11.6(a) of the Credit
Agreement, (iv) in the event Assignee is a Foreign Lender, the receipt by
Administrative Agent of United States Internal Revenue Service Forms W-8ECI,
W-8BEN or W-8IMY (as applicable), and such other forms, certificates or
documents, including those prescribed by the United States Internal Revenue
Service, properly completed and executed by Assignee, certifying as to Assignee’s
entitlement to exemption from withholding or deduction of Taxes, and (v) the
receipt by Administrative Agent of originals or telecopies of the counterparts
described above.

 

Exhibit A-3

 

The parties
hereto have caused this Assignment Agreement to be executed and delivered as of
the date first written above.

 

 

	
    

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Consented to:

  
	
   

  	
   

  
	
   

  	
  Merrill Lynch Business Financial Services Inc., as Administrative
  Agent and Swingline Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  [Festival Fun Parks, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  

  	
   

  
	
   

  	
  Title:

  	
  ]

  
								

 

Exhibit A-4

 

Schedule to Assignment Agreement

 

	
  Assignor:

  	
   

  	
   

  
	
   

  
	
  Assignee:

  	
   

  	
   

  
	
   

  
	
  Effective Date:

  	
   

  	
   

  
					

 

Credit Agreement dated as of February     , 2008  among
Festival Fun Parks, LLC, as Borrower, the financial institutions party thereto
from time to time, as Lenders, and Merrill Lynch Business Financial Services
Inc., as Administrative Agent

 

Interests Assigned:

 

	
  Commitment/Loan

  	
   

  	
  Revolving Loan

  Commitment Amount

  	
   

  	
  Term Loan B

  	
   

  
	
  Assignor Amounts

  	
   

  	
  $

  	
   

  	
  $

  	
   

  
	
  Amounts Assigned

  	
   

  	
  $

  	
   

  	
  $

  	
   

  
	
  Assignor Amounts (post-assignment)

  	
   

  	
  $

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Closing Fee:

  	
   

  	
  $

  	
   

  	
   

  	
   

  

 

Assignee Information:

 

	
  Address for Notices:

  	
   

  	
  Address for Payments:    

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Bank:

  
	
  Attention:

  	
   

  	
  ABA #:

  
	
  Telephone:

  	
   

  	
  Account #:

  
	
  Facsimile:

  	
   

  	
  Reference:

  

 

Exhibit A-5

 

	
  

  	
  Exhibit B to Credit Agreement (Excess
  Cash Flow Certificate)

  

 

FESTIVAL FUN PARKS, LLC

 

Date: 
                 ,

 

This
certificate is given by
                                  ,
a Responsible Officer of Festival Fun Parks, LLC (“Borrower”), pursuant to Section 4.1(c) of that
certain Credit Agreement dated as of February     ,
2008 among Borrower, Lenders from time to time party thereto and Merrill Lynch
Business Financial Services Inc., as Administrative Agent for Lenders (as such
agreement may have been amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”).  Capitalized terms used herein without
definition shall have the meanings set forth in the Credit Agreement.

 

The
undersigned Responsible Officer hereby certifies to Administrative Agent and
Lenders that:

 

(a)                                  set
forth below is a schedule of Excess Cash Flow for the year ended
                              ,
           and the
calculation of the required prepayment of
$                                ;
and

 

(b)                                 the
schedule set forth below is based on the audited financial statements which
have been delivered to Administrative Agent in accordance with Section 4.1(b) of
the Credit Agreement.

 

IN WITNESS
WHEREOF, the undersigned officer has executed and delivered this certificate
this          day of
                      ,
          .

 

 

	
   

  	
  By 

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
  Title 

  	
   

  	
  of Borrower

  
					

 

Exhibit B-1

 

	
  Excess
  Cash Flow is defined as follows:  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Operating
  Cash Flow (as calculated on the Compliance Certificate)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Less
  (without duplication):  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Any
  federal, state, local or other income and franchise taxes paid or payable in
  cash and included in the determination of net income, net of any cash tax
  credit or other case tax benefits*

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Regularly
  scheduled principal payments with respect to all Debt actually paid
  (including payments made on Capital Leases which are allocable to principal,
  but excluding (i) mandatory prepayments required by Section 2.3 of
  the Credit Agreement, (ii) repayments of Revolving Loans and other Debt
  subject to reborrowing to the extent not accompanied by a concurrent and
  permanent reduction of the Revolving Loan Commitment (or equivalent loan
  commitment), and (iii) the amortization of debt discount or premium)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Optional
  principal prepayments with respect to Term Loan B actually paid and optional
  principal prepayments with respect to all Revolving Loans actually paid to
  the extent accompanied by a concurrent and permanent reduction of the
  Revolving Loan Commitment

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Total
  Interest Expense (as calculated on the Compliance Certificate)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Extraordinary
  losses (or plus gains) to the extent (i) added back in the computation
  of Operating Cash Flow and (ii) made in cash (in the case of losses) or
  received in cash (in the case of gains)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Restricted
  Distributions made in cash by Holdings and permitted under Section 5.4
  of the Credit Agreement, to the extent not deducted in the calculation of
  Operating Cash Flow

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Federal,
  state, and local and other income and franchise taxes paid in cash

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Excess
  Cash Flow

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Required
  prepayment percentage

  	
   

  	
  [50/25]%

  
	
   

  	
   

  	
   

  
	
  Required
  prepayment amount(1)

  	
   

  	
  $

  

 

(1)                                  If Excess Cash Flow
is less than $1,000,000, the required prepayment amount shall be zero.  If Excess Cash Flow is greater than
$1,000,000 but less than $2,000,000, the required prepayment amount shall be
reduced (if necessary) to an amount such that Unapplied Excess Cash Flow would
not be less than $1,000,000 after giving effect to such prepayment.

 

Exhibit B-2

 

	
  

  	
  Exhibit C to Credit Agreement
  (Compliance Certificate)

  

 

COMPLIANCE CERTIFICATE

 

FESTIVAL FUN PARKS, LLC

 

Date:
                ,

 

This
certificate is given by                                           ,
a Responsible Officer of Festival Fun Parks, LLC (“Borrower”), pursuant to Section 4.1(c) of that
certain Credit Agreement dated as of February     ,
2008 among Borrower, Lenders from time to time party thereto and Merrill Lynch
Business Financial Services Inc., as Administrative Agent for Lenders (as such
agreement may have been amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”).  Capitalized terms used herein without
definition shall have the meanings set forth in the Credit Agreement.

 

The
undersigned Responsible Officer hereby certifies to Administrative Agent and
Lenders that:

 

(a)           the
financial statements delivered with this certificate in accordance with Section 4.1(a) and/or
4.1(b) of the Credit Agreement fairly present in all material respects the
results of operations and financial condition of Holdings and the Subsidiaries as of the dates and the accounting
period covered by such financial statements;

 

(b)           I have reviewed the terms of the
Credit Agreement and have made, or caused to be made under my supervision, a
review in reasonable detail of the transactions and conditions of Borrower and
the Subsidiaries during the accounting period covered by such financial statements;

 

(c)           such review has not disclosed the
existence during or at the end of such accounting period, and I have no
knowledge of the existence as of the date hereof, of any condition or event
that constitutes a Default or an Event of Default, except as set forth in
Schedule 1 hereto, which includes a description of the nature and period of
existence of such Default or an Event of Default and what action Borrower has
taken, is undertaking and proposes to take with respect thereto; and

 

(d)           Borrower is
in compliance with the covenants contained in Article 6 of the Credit
Agreement, as demonstrated by the calculation of such covenants below, except
as set forth below.

 

Exhibit B-3

 

IN WITNESS
WHEREOF, the undersigned officer has executed and delivered this certificate
this          day of
                      ,
        .

 

	
   

  	
  By 

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
  Title 

  	
   

  	
  of Borrower

  
					

 

Exhibit B-4

 

CAPITAL EXPENDITURES

(Section 6.1)

 

	
  Capital Expenditures for the applicable measurement period (the “Defined Period”) are defined as follows:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Amount capitalized during the Defined Period by Holdings and its Consolidated
  Subsidiaries as capital expenditures for property, plant, and equipment or
  similar fixed asset accounts, including any such expenditures by way of
  acquisition of a Person or by way of assumption of Debt or other obligations,
  to the extent reflected as plant, property and equipment, but in each case excluding the effect of
  any Permitted Acquisition

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Plus:       deposits
  made in the Defined Period in connection with property, plant, and equipment;
  less deposits of a prior period included above

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Less:       Net
  Cash Proceeds of Asset Dispositions received during the Defined Period which
  (i) Borrower or a Subsidiary is permitted to reinvest pursuant to the
  terms of the Credit Agreement and (ii) are included in capital
  expenditures above

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Proceeds of Property Insurance Policies received during the Defined
  Period which (i) Borrower or a Subsidiary is permitted to reinvest
  pursuant to the terms of the Credit Agreement and (ii) are included in
  capital expenditures above

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Capital Expenditures(2)

  	
   

  	
  $

  

 

(2)           To the extent Capital
Expenditures are being calculated for any Defined Period which includes any of
the following months, Capital Expenditures for such month shall be deemed to be
as follows:

 

	
  Month

  	
   

  	
  Capital Expenditures

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  October 2007

  	
   

  	
  $

  	
  925,217

  	
   

  
	
  November 2007

  	
   

  	
  $

  	
  465,274

  	
   

  
	
  December 2007

  	
   

  	
  $

  	
  665,803

  	
   

  

 

For the month
of January 2008, Capital Expenditures shall be calculated in a manner
consistent with the methodology used in the calculation of Capital Expenditures
for the above-referenced months.

 

Exhibit B-5

 

	
  Less:       Portion
  of Capital Expenditures financed during the Defined Period under Capital
  Leases or other Debt (Debt, for this purpose, does not include drawings under
  the Revolving Loan Commitment)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Unfinanced Capital Expenditures (used in calculation of Operating
  Cash Flow (defined in Section 6.3 of the Compliance Certificate))

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Capital Expenditures (from above)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Permitted Capital Expenditures (including carry forward of $                from
  prior fiscal year)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  In Compliance

  	
   

  	
  Yes/No

  

 

Exhibit B-6

 

FIXED CHARGE COVERAGE RATIO

 

(Section 6.2)

 

	
  Fixed Charge Coverage Ratio for the applicable measurement period
  (the “Defined Period”) is
  defined as follows:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Fixed Charges: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Interest expense ($), net of interest income ($), interest paid in
  kind ($) and amortization of capitalized fees and expenses incurred to
  consummate the transactions contemplated by the Operative Documents and
  included in interest expense ($), included in the determination of net income
  of Holdings and its Consolidated Subsidiaries for the Defined Period (“Total Interest Expense”)(3)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Plus (without duplication): 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Any federal, state, local or other income and franchise taxes paid or
  payable in cash and included in the determination of net income for the
  Defined Period, net of any cash tax credit or other cash tax benefits
  received during the Defined Period

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Scheduled payments of principal for the Defined Period with respect
  to all Debt (including the portion of scheduled payments under Capital Leases
  allocable to principal and Permitted AHYDO Prepayments (as defined in the
  Subordination Agreement) but excluding mandatory prepayments required by
  Section 2.3 and excluding scheduled repayments of Revolving Loans and
  other Debt subject to reborrowing to the extent not accompanied by a
  concurrent and permanent reduction of the Revolving Loan Commitment (or
  equivalent loan commitment))

  	
   

  	
   

  

 

(3)                                  Interest expense
shall not include interest expense relating to the Existing RBS Debt which is
reflected on the consolidated financial statements of Holdings and its
Subsidiaries solely as a result of the application of “push-down” accounting
principals in accordance with GAAP, but only so long as neither Holdings nor
any of its Subsidiaries has any liability, contingent or otherwise, with
respect to such Existing RBS Debt (or any intercompany Debt related thereof)
and so long as the footnotes to Holdings’ consolidated financial statements
(including the annual financial statements delivered in accordance with
Section 4.1(b) of the Credit Agreement) reflect the foregoing in
a manner satisfactory to Administrative Agent.

 

Exhibit B-7

 

	
  Restricted Distributions made by Holdings in cash during the Defined
  Period, to the extent not deducted in the calculation of Operating Cash Flow
  for the Defined Period

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Fixed Charges(4),(5)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Operating Cash Flow: 

  	
   

  	
   

  
	
   

  	
   

  	
  $

  
	
  EBITDA for the Defined Period (calculated in the manner set forth
  below)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Less:       Unfinanced
  Capital Expenditures for the Defined Period (calculated in the manner
  required by Section 6.1 of the Compliance Certificate)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  To the extent not already reflected in the calculation of EBITDA,
  other capitalized costs, defined as the gross amount paid in cash and
  capitalized during the Defined Period, as long term assets, other than
  amounts capitalized during the Defined Period as capital expenditures for
  property, plant and equipment or similar fixed asset accounts

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Operating Cash Flow

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Fixed Charge Coverage Ratio (Ratio of Operating Cash Flow to Fixed
  Charges) for the Defined Period

  	
   

  	
          to 1.0

  
	
   

  	
   

  	
   

  
	
  Minimum Fixed Charge Coverage for the Defined Period

  	
   

  	
          to 1.0

  
	
   

  	
   

  	
   

  
	
  In Compliance

  	
   

  	
  Yes/No

  

 

* 
*  *  *

EBITDA
for the Defined Period is defined as follows:

 

(4)                                  Note:  Each component of Fixed Charges shall exclude
the operating results of any Target of a Permitted Acquisition prior to the
date the Target became a Subsidiary of Borrower, in the case of Permitted
Acquisitions consummated as a purchase of the Capital Stock of such Target.

 

(5)                                  For each of the
Defined Periods ending September 30, 2008 and December 31, 2008,
Fixed Charges shall be annualized based on actual Fixed Changes from March 1,
2008 through the end of such period.

 

Exhibit B-8

 

	
  Net income (or loss) for the Defined Period of Holdings  and its Consolidated Subsidiaries, but excluding:
  (a) the income (or loss) of any Person (other than Subsidiaries of
  Holdings) in which Holdings or any of its Subsidiaries has an ownership
  interest unless received by Holdings  or its
  Subsidiary in a cash distribution; and (b) the income (or loss) of any
  Person accrued prior to the date it became a Subsidiary of Holdings  or is merged into or consolidated with Holdings

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Plus:       Any
  provision for (or less any benefit, including income tax credits, from)
  federal, state, local or other income and franchise taxes deducted in the
  determination of net income for the Defined Period

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Interest expense, net of interest income, deducted in the
  determination of net income for the Defined Period

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Amortization and depreciation deducted in the determination of net
  income for the Defined Period

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Losses (or less gains) from Asset Dispositions included in the
  determination of net income for the Defined Period (excluding sales, expenses
  or losses related to current assets)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Other non-cash expenses (or less gains or income) deducted (or
  included) in the determination of net income for the Defined Period
  (including non-cash expenses deducted as a result of any sale or grant of
  Capital Stock to employees, officers or directors and non-cash expenses (or
  less gains or income) deducted (or included) as a result of the application
  of purchase accounting) and for which no cash outlay (or cash receipt) is
  foreseeable prior to the Commitment Expiry Date or, if later, the final
  scheduled installment in respect of Term Loan B

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Expenses and fees deducted in the determination of net income and
  incurred during the Defined Period to consummate the transactions
  contemplated by the Operative Documents, but solely to the extent set forth
  in the statement of sources and uses delivered to Administrative Agent on the
  Closing Date

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Extraordinary losses (or less gains) included in the determination of
  net income during the Defined Period, net of related tax effects

  	
   

  	
   

  

 

Exhibit B-9

 

	
  To the extent deducted in the determination of net income during the
  Defined Period, (1) severance or related legal expenses relating to any
  corporate reorganization resulting from the Acquisition, any Permitted
  Acquisition or any Asset Disposition; (2) costs and expenses incurred
  with de-registering under the Securities Exchange Act of 1934;
  (3) relocation and related expenses related to the hiring of a new chief
  executive officer for Borrower; (4) expenses, costs and fees associated
  with failed acquisitions; and (5) costs associated with the director and
  officer “run-off” liability policy purchased in connection with the
  Acquisition; provided that the aggregate amount of all such costs and
  expenses added back during any Defined Period shall not exceed $1,000,000 and
  shall be documented in a manner reasonably satisfactory to Administrative
  Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Less:       Expenditures
  made after the Closing Date, but during the Defined Period, in connection
  with the consummation of the transactions contemplated by the Operative
  Documents, but not reflected in the pro forma balance sheet referenced in
  Section 3.5(c) and not deducted in the determination of net income

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EBITDA for the Defined Period(6)

  	
   

  	
  $

  

 

(6)                                  To the extent EBITDA
is calculated for any Defined Period that includes any of the following months,
EBITDA for such month shall be deemed to be as follows:

 

	
  Month

  	
   

  	
  EBITDA

  	
   

  
	
  January 2007

  	
   

  	
  $

  	
  (1,724,000

  	
  )

  
	
  February 2007

  	
   

  	
  $

  	
  (1,895,000

  	
  )

  
	
  March 2007

  	
   

  	
  $

  	
  (1,561,000

  	
  )

  
	
  April 2007

  	
   

  	
  $

  	
  (799,000

  	
  )

  
	
  May 2007

  	
   

  	
  $

  	
  (2,228,000

  	
  )

  
	
  June 2007

  	
   

  	
  $

  	
  8,979,000

  	
   

  
	
  July 2007

  	
   

  	
  $

  	
  16,928,000

  	
   

  
	
  August 2007

  	
   

  	
  $

  	
  20,102,000

  	
   

  
	
  September 2007

  	
   

  	
  $

  	
  2,244,000

  	
   

  
	
  October 2007

  	
   

  	
  $

  	
  (2,192,000

  	
  )

  
	
  November 2007

  	
   

  	
  $

  	
  (1,477,000

  	
  )

  
	
  December 2007

  	
   

  	
  $

  	
  (1,669,000

  	
  )

  

 

For the month of January 2008, EBITDA shall be calculated in a
manner consistent with the methodology used in the calculation of EBITDA for
the above-referenced months.

 

Exhibit B-10

 

TOTAL DEBT TO EBITDA RATIO

(Section 6.3)

 

	
  Total Debt:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Average Net Revolving Loan Facility Usage as of the last day of each
  month during the applicable measurement period (the “Defined Period”)(7)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Plus:       Outstanding
  principal balance of Term Loan  B as of the last day of the Defined Period

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Outstanding principal balance of all other Debt of Holdings and its
  Consolidated Subsidiaries as of the
  last day of the Defined Period (excluding Letter of Credit Liabilities)(8)

  	
   

  	
   

  

 

(7)                                  To the extent Net
Revolving Loan Facility Usage is being calculated as of the last day of any of
the following months, Net Revolving Loan Facility Usage as of such date shall
be deemed to be the following:

 

	
  Month

  	
   

  	
  Net Revolving Loan Facility Usage

  	
   

  
	
  January 2007

  	
   

  	
  $

  	
  4,300,000

  	
   

  
	
  February 2007

  	
   

  	
  $

  	
  6,000,000

  	
   

  
	
  March 2007

  	
   

  	
  $

  	
  9,600,000

  	
   

  
	
  April 2007

  	
   

  	
  $

  	
  21,100,000

  	
   

  
	
  May 2007

  	
   

  	
  $

  	
  24,300,000

  	
   

  
	
  June 2007

  	
   

  	
  $

  	
  14,100,000

  	
   

  
	
  July 2007

  	
   

  	
  $

  	
  (1,400,000

  	
  )

  
	
  August 2007

  	
   

  	
  $

  	
  (17,068,000

  	
  )

  
	
  September 2007

  	
   

  	
  $

  	
  (12,589,000

  	
  )

  
	
  October 2007

  	
   

  	
  $

  	
  (4,028,000

  	
  )

  
	
  November 2007

  	
   

  	
  $

  	
  (1,696,000

  	
  )

  
	
  December 2007

  	
   

  	
  $

  	
  3,891,000

  	
   

  
	
  January 2008

  	
   

  	
  $

  	
  7,574,000

  	
   

  

 

(8)                                  Debt shall not
include the Existing RBS Debt which is reflected on the consolidated financial
statements of Holdings and its Subsidiaries solely as a result of the
application of “push-down” accounting principals in accordance with GAAP, but
only so long as neither Holdings nor any of its Subsidiaries has any liability,
contingent or otherwise, with respect to such Existing RBS Debt (or any
intercompany Debt related thereof) and so long as the footnotes to Holdings’
consolidated financial statements (including the annual financial statements
delivered in accordance with Section 4.1(b) of the Credit
Agreement) reflect the foregoing in a manner satisfactory to Administrative
Agent.

 

Exhibit B-11

 

	
  Total Debt

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  EBITDA for the Defined Period
  (calculated in the manner required by Section 6.2 of the Compliance
  Certificate)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Plus:       Pro Forma Acquisition EBITDA (as
  defined below) for each Permitted Acquisition (and each proposed Permitted
  Acquisition for determining compliance with the requirement of
  Section 5.8)

  	
   

  	
   

  

 

Permitted               Acquisition            #1:                                  

Permitted               Acquisition            #2:         
                        

Permitted               Acquisition
          #3:          
                        

[additional line items, as applicable]

 

	
  Adjusted EBITDA

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Total Debt to EBITDA Ratio (ratio of Total Debt to Adjusted EBITDA for the Defined
  Period)

  	
   

  	
         to 1.0

  
	
   

  	
   

  	
   

  
	
  Maximum Permitted Total Debt to EBITDA Ratio for the Defined Period

  	
   

  	
         to 1.0

  
	
   

  	
   

  	
   

  
	
  In Compliance

  	
   

  	
  Yes/No

  

 

“Pro Forma Acquisition EBITDA” means (i) EBITDA (calculated in the
same manner as EBITDA is calculated on this Exhibit C) attributable to
each Permitted Acquisition (with such pro forma adjustments as are reasonably
acceptable to Administrative Agent based upon data presented to Administrative
Agent to its reasonable satisfaction) consummated during the one (1) year
period preceding the date of determination calculated solely for a number of
months immediately preceding the consummation of the applicable Permitted
Acquisition, which number equals twelve (12) minus the number of months
following the consummation of the applicable Permitted Acquisition for which
financial statements of Holdings and its Subsidiaries have been delivered to
Administrative Agent pursuant to Section 4.1, and (ii) for purposes
of determining compliance with Section 5.8, EBITDA (calculated in the same
manner as EBITDA is calculated on this Exhibit C) of the target of any
proposed Permitted Acquisition (adjusted with such pro forma adjustments as are
reasonably acceptable to Administrative Agent based upon data presented to
Administrative Agent to its reasonable satisfaction) calculated for the twelve
(12) months immediately preceding the consummation of the proposed Permitted
Acquisition.

 

Exhibit B-12

 

Schedule 1 to

Compliance Certificate

 

[Borrower to list
any existing Defaults or Events of Default, specifying the nature and period of
existence of each, and the actions Borrower has taken, is undertaking and
proposes to take in respect thereof.  If
no Defaults and no Events of Default are then in existence, such schedule
should read “None”.]

 

Exhibit B-13

 

	
  

  	
  Exhibit E to Credit Agreement (Notice
  of Borrowing)

  

 

FESTIVAL FUN PARKS, LLC

 

Date: 
                ,

 

This
certificate is given by
                                        ,
a Responsible Officer of Festival Fun Parks, LLC (“Borrower”), pursuant to Section [2.2(b)/2.3(f)] of that certain Credit
Agreement dated as of February     , 2008 among
Borrower, Lenders from time to time party thereto and Merrill Lynch Business
Financial Services Inc., as Administrative Agent for Lenders (as such agreement
may have been amended, restated, supplemented or otherwise modified from time
to time the “Credit Agreement”).  Capitalized terms used herein without
definition shall have the meanings set forth in the Credit Agreement.

 

The
undersigned Responsible Officer hereby gives notice to Administrative Agent of
Borrower’s request to:  [complete as appropriate]

 

(a)                                  on
[   
date    ] borrow $[                    ]
of Revolving Loans, which Revolving Loans shall be [Base Rate
Loans/LIBOR Loans having an Interest Period of
            
month(s)];

 

(b)                                 on
[    date    ] convert $[                ]of
the aggregate outstanding principal amount of the [              ]
Loan, bearing interest at the [                ]
Rate, into a(n) [                ]
Loan [and, in the case of a LIBOR Loan, having an
Interest Period of [          ]
month(s)];

 

(c)                                  on
[   
date    ] continue
$[                ]of
the aggregate outstanding principal amount of the [              ]
Loan, bearing interest at the LIBOR, as a LIBOR Loan having an Interest Period
of [          ]
month(s).

 

The undersigned
officer hereby certifies that except as set forth on Exhibit A hereto,
both before and after giving effect to the request above (i) each of the
conditions precedent set forth in Section 7.2(b), 7.2(c) and 7.2(d) have
been satisfied, (ii) all of the representations and warranties contained
in the Credit Agreement and the other Financing Documents are true, correct and
complete as of the date hereof, except to the extent such representation or
warranty relates to a specific date, in which case such representation or
warranty is true, correct and complete as of such earlier date, and (iii) no
Default or Event of Default has occurred and is continuing on the date hereof.

 

IN WITNESS
WHEREOF, the undersigned officer has executed and delivered this certificate
this          day of
                      ,
        .

 

	
   

  	
  By 

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
  Title 

  	
   

  	
  of Borrower

  
					

 

Exhibit E-1

 

	
  

  	
  Exhibit F to Credit Agreement (Payment
  Notification)

  

 

FESTIVAL FUN PARKS, LLC

 

Date: 
                ,

 

Reference is
hereby made to the Credit Agreement dated February     ,
2008 among the undersigned, Merrill Lynch Business Financial Services Inc., as
Administrative Agent and the financial institutions party thereto.  Capitalized terms used here have the meanings
ascribed thereto in the Credit Agreement.

 

Please be
advised that funds in the amount of
$                  
will be wire transferred to Administrative Agent on
                  ,
200   .

 

Such funds
shall constitute [an optional] [a mandatory]
prepayment of Term Loan B, with such prepayments to be applied in the manner
specified in Section 2.5(a).

 

[Such mandatory prepayment is being made pursuant to Section 2.3[(s),
(b), (c) or (d)] of the Credit Agreement.]

 

Fax to MLC Operations 312-499-3336 no later
than noon Chicago time

 

Note:      Funds
must be received no later than noon Chicago time for same day application

 

Wire Instructions:

	
  Bank Name:

  	
  LaSalle Bank National Association

  
	
   

  	
  135 S. LaSalle Street

  
	
   

  	
  Chicago, IL 60603

  
	
   

  	
   

  
	
  ABA#:

  	
  0710-0050-5

  
	
  Account Name:

  	
  MLBFS Corporate Finance

  
	
  Account #:

  	
  5800393182

  
	
  Reference:

  	
  (Client Name)

  
	
   

  	
   

  
	
  Address:

  	
  Merrill Lynch Capital

  
	
   

  	
  222 N. LaSalle Street, 16th Floor

  
	
   

  	
  Chicago, IL 60601

  

 

IN WITNESS
WHEREOF, the undersigned officer has executed and delivered this certificate
this          day of
                      ,
        .

 

	
   

  	
  By 

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
  Title 

  	
   

  	
  of Borrower

  
					

 

Exhibtit F-1

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