Document:

Restricted
        Equity Purchase Agreement

       

      THIS
        Restricted
        Equity Purchase Agreement
        (this
“Agreement”)
        is
        made and entered into as of May
        14,
        2007,
        between Airbee
        Wireless, Inc.,
        a
        Delaware corporation
        (the
        “Company”), and Mercatus & Partners Limited a United Kingdom Private Limited
        Company (the “Purchaser”).

       

      WHEREAS,
        PURCHASER desires to purchase Shares of the Company; and

       

      WHEREAS,
        Company desires for Purchaser to purchase Shares of the Company.

      

      NOW,
        THEREFORE, subject to the terms and conditions set forth in this Agreement,
        for
        good, valuable and binding consideration, the receipt and sufficiency of
        which
        are hereby acknowledged, the parties hereto, intending to be legally bound
        hereby, now agree as follows:

      

      ARTICLE
        I 

       

      INTRODUCTION
        AND DEFINITIONS

       

      This
        Agreement is entered into by the parties for purchase of equity shares of
        the
        Company by the Purchaser. This
        is a delayed purchase transaction not an immediate funding.
        The
        Company
        recognizes and agrees that the Purchaser shall have up to thirty (30) days,
        as
        set forth in this Agreement to tender the Purchase Price to the Company through
        the intermediary Custodian and Purchaser, once the valuation and purchase
        of the
        shares is made in accordance with the terms of this Agreement. The Company
        shall
        have the right to contact the Custodian administrator for Purchaser account
        verification and for confirmation of the share status, location and control.
        Purchaser shall have up to thirty (30) days from the date of delivery of
        the
        Shares in the name of the Purchaser to the Custodian to pay the Purchase
        Price.

      

      

      Certain
        Definitions.
        As used
        in this Agreement, and unless the context requires a different meaning, the
        following terms have the meanings indicated:

       

      “Affiliate”
means,
        with respect to any Person, any Person that, directly or indirectly, controls,
        is controlled by or is under common control with such Person. For the purposes
        of this definition, “control”
        (including, with correlative meanings, the terms “controlled
        by”
and
        “under
        common control with”)
        shall
        mean the possession, directly or indirectly, of the power to direct or cause
        the
        direction of the management and policies of such Person, whether through
        the
        ownership of voting securities or by contract or otherwise.

      

      “Agreement”
shall
        have the meaning set forth in the introductory paragraph of this
        Agreement.

      

      “Attorney-in-fact”
means
        the agent of the Purchaser or Designee, R.
        Matthew Tullis.
        The
        attorney-in-fact, R.
        Matthew Tullis,
        has
        limited oversight authority of the Purchaser and the Custodian to submit
        terms
        sheets, execute the Agreement as well as oversight authority, verify share
        deposit, valuation process and share transaction status. 

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      “Business
        Day”
means
        any day except Saturday, Sunday, any day which shall be a legal holiday or
        a day
        on which banking institutions in the State of New York are authorized or
        required by law or other government actions to close.

       

      “Change
        of Control”
        means
        the acquisition, directly or indirectly, by any Person of ownership of, or
        the
        power to direct the exercise of voting power with respect to, a majority
        of the
        issued and outstanding voting shares of the Company.

       

      “Closing”
or
        "Closing
        Date"
        shall
        be the date of
        the
        payment by the Purchaser of the Purchase Price.

      

      “Company”
shall
        mean (Company) as set forth in the introductory paragraph.

      

      "Control
        Person"
        shall
        have the meaning set forth in Section 4.10(a) (i).

      

      “Custodian”
        means
        a
        financial institution that has the legal responsibility for a customer's
        securities. This implies management as well as safekeeping. The Custodian
        for
        this Agreement is named in Schedule
        1. 

      

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

      

      “Depository”
        means
        a
company
        which
        holds securities deposited by others, and where exchanges of these securities
        take place.

      

      “Disclosure
        Documents”
means
        the Company’s reports filed under the Exchange Act with the SEC.

      

      “Event
        of Default”
shall
        have the meaning set forth in Section
        3.1(i).

      

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

      

      “Execution
        Date”
means
        the date of this Agreement first written above.

      

      “Final
        Market Price”
means
        the average of the last sale price for the Common Stock of the Company as
        reported on the OTCBB Over-The-Counter (OTC) listing service, for the ten
        (10)
        Business days immediately preceding the Closing. Final Market Price shall
        be
        agreed to by the parties as evidenced by the execution by both Company and
        Purchaser of the Funding Addendum Schedule
        2,
        which
        is made a part of this Agreement. 

      

      “Final
        Purchase Price’”
means
        the Final Market Price multiplied by the Purchase Price Percentage.

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      “Funding
        Addendum”
        Schedule
        2
        shall
        mean the instructions provided to Purchaser by Company setting out the Final
        Market Price and directing how the Purchase Price is to be
        remitted.

      

      “Indemnified
        Party”
shall
        have the meaning set forth in Section
        4.10(b).

      

      “Indemnifying
        Party”
shall
        have the meaning set forth in Section
        4.10(b).

      

      "Losses"
        shall
        have the meaning set forth in Section 4.10(a) (i). 

       

      "Material
        Adverse Effect"
        shall
        have the meaning set forth in Section 3.1(a).

      

      “NASD”
means
        the National Association of Securities Dealers, Inc.

      

      “NASDAQ”
shall
        mean the Nasdaq Stock Market, Inc.®

      

      “Number
        of Shares”
        means
        the number of shares to be received by the Custodian which is thirty three
        million three hundred thirty four thousand (33,334,000) shares.

      

      “OTCBB”
shall
        mean the NASD over-the counter Bulletin Board®.

      

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

      

      “Proceeding”
means
        an action, claim, suit, investigation or proceeding (including, without
        limitation, an investigation or partial proceeding, such as a deposition),
        whether commenced or threatened.

      

      “Purchase
        Price”
shall
        have the meaning set forth in Article
        II.

      

      “Purchase
        Price Percentage”
means
        forty five percent (45%).

      

      “Purchaser”
shall
        have the meaning set forth in the introductory paragraph.

      

      “Reporting
        Issuer”
means
        a
        company that is subject to the reporting requirements of Section 13 or 15(d)
        of
        the Exchange Act.

      

      “Required
        Approvals”
shall
        have the meaning set forth in Section
        3.1(g).

      

      “Securities”
means
        the Common Stock and stock of any other class into which such shares may
        hereafter have been reclassified or changed.

      

      “SEC”
means
        the Securities and Exchange Commission.

      

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

      

      “Shares”
shall
        have the meaning set forth in
        Article II.

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      “Subsidiaries”
shall
        have the meaning set forth in
        Section 3.1(a).

      

      “Trading
        Day”
means
        (a) a day on which the Common Stock is quoted on NASDAQ, the OTCBB or the
        principal stock exchange on which the Common Stock has been listed, or (b)
        if
        the Common Stock is not quoted on NASDAQ, the OTCBB or any stock
        exchange.

      

      “Transaction
        Documents”
means
        this Agreement and all exhibits and schedules hereto, and all other documents,
        instruments and writings required pursuant to this Agreement.

      

      “U.S.”
means
        the United States of America.

      

       

       

      ARTICLE
        II

       

      The
        Purchaser
        hereby
        agrees to purchase 33,334,000 shares
        of the
        Common Stock,
        par
        value $0.00004 per share
        of the
Company
        (the "Shares").
        The
        Purchase Price to be paid by the Purchaser shall be determined at Closing.
        The
        Purchase Price shall be the Final Purchase Price as defined herein multiplied
        by
        the Number of Shares deposited with the Custodian.

      I

      ARTICLE
        III

       

      REPRESENTATIONS
        AND WARRANTIES

       

      3.1 Representations,
        Warranties and Agreements of the Company.
        The
        Company hereby makes the following representations and warranties to the
        Purchaser, all of which shall survive the Closing:

       

      (a)  Organization
        and Qualification.
        The
        Company is a publicly traded corporation, duly incorporated, validly existing
        and in good standing under the laws of the State of Delaware,
        with the requisite corporate power and authority to own and use its properties
        and assets and to carry on its business as currently conducted. The Company
        has
        no subsidiaries other than as set forth on Schedule
        3.1(a)
        attached
        hereto (collectively, the “Subsidiaries”).
        Each
        of the Subsidiaries is a corporation, duly incorporated, validly existing
        and in
        good standing under the laws of the jurisdiction of its incorporation, with
        the
        full corporate power and authority to own and use its properties and assets
        and
        to carry on its business as currently conducted. Each of the Company and
        the
        Subsidiaries is duly qualified to do business and is in good standing as
        a
        foreign corporation in each jurisdiction in which the nature of the business
        conducted or property owned by it makes such qualification necessary, except
        where the failure to be so qualified or in good standing, as the case may
        be,
        would not, individually or in the aggregate, have a material adverse effect
        on
        the results of operations, assets, prospects, or financial condition of the
        Company and the Subsidiaries, taken as a whole (a “Material
        Adverse Effect”).

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      (b)  Authorization,
        Enforcement.
        The
        Company has the requisite corporate power and authority to enter into and
        to
        consummate the transactions contemplated hereby and by each other Transaction
        Document and otherwise to carry out its obligations hereunder and thereunder.
        The execution and delivery of this Agreement and each of the other Transaction
        Documents by the Company and the consummation by it of the transactions
        contemplated hereby and thereby has been duly authorized by all necessary
        action
        on the part of the Company. This Agreement and each of the other Transaction
        Documents has been or will be duly executed by the Company and when delivered
        in
        accordance with the terms hereof or thereafter will constitute the valid
        and
        binding obligation of the Company enforceable against the Company in accordance
        with its terms, except as such enforceability may be limited by applicable
        bankruptcy, insolvency, reorganization, moratorium, liquidation or similar
        laws
        relating to, or affecting generally the enforcement of, creditors’ rights and
        remedies or by other equitable principles of general application.

       

      (c)  Capitalization.
        The
        authorized, issued and outstanding capital stock of the Company is set forth
        on
Schedule
        3.1(c).
        No
        shares of Common Stock are entitled to preemptive or similar rights, nor
        is any
        holder of the Common Stock entitled to preemptive or similar rights arising
        out
        of any agreement or understanding with the Company by virtue of this Agreement.
        Except as disclosed in Schedule
        3.1(c),
        there
        are no outstanding options, warrants, scripts,
        rights
        to subscribe to, registration rights, calls or commitments of any character
        whatsoever relating to securities, rights or obligations convertible into
        or
        exchangeable for, or giving any person any right to subscribe for or acquire,
        any shares of Common Stock, or contracts, commitments, understandings, or
        arrangements by which the Company or any Subsidiary is or may become bound
        to
        issue additional shares of Common Stock, or securities or rights convertible
        or
        exchangeable into shares of Common Stock. Neither the Company nor any Subsidiary
        is in violation of any of the provisions of its Certificate of Incorporation,
        bylaws or other charter documents.

       

      (d)  Issuance
        of Securities.
        The
        Shares have been duly and validly authorized for issuance, offer and sale
        pursuant to this Agreement and, when issued and delivered as provided hereunder
        against payment in accordance with the terms hereof, shall be valid and binding
        obligations of the Company enforceable in accordance with their respective
        terms. 

       

      (e)  Use
        of
        Proceeds.
        The
        proceeds from the sale of shares shall be used by the Company for payment
        of
        obligations and general working capital needs consistent with financial budgets
        and approved from time to time by the Board of Directors.

       

      (f)  No
        Conflicts.
        The
        execution, delivery and performance of this Agreement and the other Transaction
        Documents by the Company and the consummation by the Company of the transactions
        contemplated hereby and thereby do not and will not (i) conflict with or
        violate
        any provision of its Certificate of Incorporation or bylaws (each as amended
        through the date hereof) or (ii) be subject to obtaining any consents except
        those referred to in Section
        3.1(f),
        conflict with, or constitute a default (or an event which with notice or
        lapse
        of time or both would become a default) under, or give to others any rights
        of
        termination, amendment, acceleration or cancellation of, any agreement,
        indenture or instrument to which the Company is a party, or (iii) result
        in a
        violation of any law, rule, regulation, order, judgment, injunction, decree
        or
        other restriction of any court or governmental authority to which the Company
        or
        its Subsidiaries is subject (including, but not limited to, those of other
        countries and the federal and state securities laws and regulations), or
        by
        which any property or asset of the Company or its Subsidiaries is bound or
        affected, except in the case of clause (ii), such conflicts, defaults,
        terminations, amendments, accelerations, cancellations and violations as
        would
        not, individually or in the aggregate, have a Material Adverse Effect. The
        business of the Company and its Subsidiaries is not being conducted in violation
        of any law, ordinance or regulation of any governmental authority.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      (g)  Consents
        and Approvals.
        Except
        as specifically set forth in Schedule
        3.1(g),
        neither
        the Company nor any Subsidiary is required to obtain any consent, waiver,
        authorization or order of, or make any filing or registration with, any court
        or
        other federal, state, local or other governmental authority or other Person
        in
        connection with the execution, delivery and performance by the Company of
        this
        Agreement and each of the other Transaction Documents (together with the
        consents, waivers, authorizations, orders, notices and filings referred to
        herein or in Schedule 3.1(g),
        the
“Required
        Approvals”).

       

      (h)  Litigation;
        Proceedings.
        Except
        as specifically disclosed in Schedule
        3.1(h),
        there is
        no action, suit, notice of violation, proceeding or investigation pending
        or, to
        the best knowledge of the Company, threatened against or affecting the Company
        or any of its Subsidiaries or any of their respective properties before or
        by
        any court, governmental or administrative agency or regulatory authority
        (federal, state, county, local or foreign) which (i) relates to or challenges
        the legality, validity or enforceability of any of the Transaction
        Documents
        or the
        Shares, (ii) could, individually or in the aggregate, have a Material Adverse
        Effect or (iii) could, individually or in the aggregate, materially impair
        the
        ability of the Company to perform fully on a timely basis its obligations
        under
        the Transaction Documents.

       

      (i)  No
        Default or Violation.
        Except
        as set forth in Schedule
        3.1(i)
        hereto,
        neither the Company nor any Subsidiary (i) is in default under or in violation
        of any indenture, loan or credit agreement or any other agreement or instrument
        to which it is a party or by which it or any of its properties is bound,
        except
        such conflicts or defaults as do not have a Material Adverse Effect, (ii)
        is in
        violation of any order of any court, arbitrator or governmental body, except
        for
        such violations as do not have a Material Adverse Effect, or (iii) is in
        violation of any statute, rule or regulation of any governmental authority
        which
        could (individually or in the aggregate) adversely
        affect the legality, validity or enforceability of this Agreement, have
        a
        Material Adverse Effect or
        adversely impair the Company’s ability or obligation to perform fully on a
        timely basis its obligations under this Agreement.

       

      (j)  Disclosure
        Documents.
        The
        Disclosure Documents are accurate in all material respects and do not contain
        any untrue statement of material fact or omit to state any material fact
        necessary in order to make the statements made therein, in light of the
        circumstances under which they were made, not misleading. Violation of this
        clause is and will be considered grounds for default and could result in
        the
        termination of this Agreement.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      (k)  Non-Registered
        Offering
        Neither
        the Company nor any Person acting on its behalf has taken or will take any
        action (including, without limitation, any offering of any securities of
        the
        Company under circumstances which would require the integration of such offering
        with the offering of the Shares under the Securities Act) which might subject
        the offering, issuance or sale of the Shares to the registration requirements
        of
        Section 5 of the Securities Act.

       

      (l)  Registration
        Rights.
        The
        Company agrees: (1) to
        instruct and require its
        transfer
        agent to remove the restrictive legend upon the request of Purchaser
        if the
        Shares are eligible for resale under Rule 144(k) promulgated under the
        Securities Act or if the resale of the Shares has been registered under the
        Securities Act; (2) there will be no trading by affiliates of the Company
        (as
        defined in the Securities Act) within thirty
        (30)
        days of
        the Closing; or (3) there will be no selling by affiliates of the Company
        during
        the fifteen
        (15) months subsequent to the
        date
        of Closing or three (3) months following the registration of Purchaser shares,
        whichever is sooner.
        The
        Company covenants and agrees that, in the event the Purchaser is deemed to
        be an
        "affiliate" of the Company pursuant to the Securities Act, as of or at
        any time subsequent to the second anniversary of the Closing Date, the
        Company will, within 120 days of the Company’s receipt of the Purchaser's
        request, file a registration statement with the SEC to register for immediate
        resale pursuant to the Securities Act all Shares then held by the Purchaser
        (including any shares of common stock issuable upon conversion of the Shares
        then held by the Purchaser) (the “Registrable
        Securities”).  The
        Company shall use its commercially reasonable efforts to cause such registration
        statement to be declared effective under the Securities Act as promptly as
        possible after the filing thereof. The Company shall use its reasonable
        commercial efforts to keep such registration statement continuously effective
        under the Securities Act until the date which is the earlier date of when
        (i)
        all Registrable Securities have been sold, or (ii) all Registrable Securities
        covered by such registration statement may be sold immediately without
        registration under the Securities Act and without volume restrictions pursuant
        to Rule 144(k). The
        Company shall pay all expenses of such registration, including registration
        and
        filing fees, "blue sky" fees and expenses and reasonable fees and expenses
        of one counsel to the Purchaser, such fee not to exceed $15,000. 
All
        selling commissions applicable to the sale of Registrable Securities, including
        any fees and disbursements of any special counsel to the Purchaser beyond
        those
        included above, shall not be the responsibility of the Company. The
        Company and the Purchaser agree that the determination of the Purchaser's
        status
        as an "affiliate" will be made by counsel to the Purchaser in good faith
        after
        consultation with counsel to the Company.

       

      (m)  Regulation
        S.
        Neither
        the Company nor any affiliate or any person acting on the Company's behalf,
        has
        made or is aware of any “directed selling efforts” in the United States, which
        is defined in Regulation S to be any activity undertaken for the purpose
        of, or
        that could reasonably be expected to have the effect of, conditioning the
        market
        in the United States for any of the Shares being purchased hereby. 

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      (n)   Due
        Diligence.
        The
        Company agrees to cooperate with the Purchaser and provide access to the
        Company's books and records so that the Purchase is able to conduct a due
        diligence review of the Company and its business. The Purchaser shall have
        up to
        thirty (30) days following execution of this Agreement to conduct such due
        diligence review.

       

      (o)  Material
        Misrepresentations.
        The
        Company agrees that all materials and information it discloses or otherwise
        provides to the Purchaser relating to this Agreement and the transactions
        contemplated pursuant to this Agreement are accurate in all material respects
        and do not contain any untrue statement of material fact or omit to state
        any
        material face necessary in order to make the statements made therein, in
        light
        of the circumstances under which they were made, not misleading. Violation
        of
        this clause is and will be considered an event of default permitting the
        Purchaser to terminate the Agreement immediately.

       

      (p)  Company
        Funding Agent.
        In the
        event the Company has any agreement for compensation with any party to raise
        the
        funds on behalf of the Company ("Company Funding Agent Agreement"),
        the
        Company
        will disclose the terms of that Company Funding Agent Agreement to Purchaser
        prior to the execution of this Agreement. Following the execution of this
        Agreement, the Attorney-in-Fact shall be the Company contact for all information
        relating to the status of funding, location of Shares, settlement of the
        payment
        of the Purchase Price and any other information requests of the Company.
        Notwithstanding the above, in the event the Purchase Price is not paid as
        required herein, the
        Company
        may directly contact the Attorney-in-Fact to provide the
        Company
        notice of demand for the return of the Shares.

       

      The
        Purchaser
        acknowledges and agrees that the Company
        makes no
        representation or warranty with respect to the transactions contemplated
        hereby
        other than those specifically set forth in this
        Section
        3.1.

       

      3.2 Representations
        and Warranties of the Purchaser.
        The
        Purchaser hereby represents and warrants to the Company as follows:

       

      (a)  Organization;
        Authority.
        The
        Purchaser is a corporation, duly organized, validly existing and in good
        standing under the laws of the jurisdiction of its formation with the requisite
        power and authority to enter into and to consummate the transactions
        contemplated hereby and by the other Transaction Documents and otherwise
        to
        carry out its obligations hereunder and thereunder. The acquisition of the
        Shares to be purchased by the Purchaser hereunder has been duly authorized
        by
        all necessary action on the part of the Purchaser. This Agreement has been
        duly
        executed and delivered by the Purchaser and constitutes the valid and legally
        binding obligation of the Purchaser, enforceable against it in accordance
        with
        its terms, except as such enforceability may be limited by applicable
        bankruptcy, insolvency, reorganization, moratorium or similar laws relating
        to,
        or affecting generally the enforcement of, creditors rights and remedies
        or by
        other general principles of equity.

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      (b)  Investment
        Intent.
        The
        Purchaser is acquiring the Shares to be purchased by it hereunder, for its
        own
        account for investment purposes only and not with a view to or for distributing
        or reselling such Shares, or any part thereof or interest therein. Purchaser’s
        right, subject to the provisions of this Agreement, to sell or otherwise
        dispose
        of all or any part of such Shares shall be in compliance with applicable
        federal
        and state securities laws. 

       

      (c)  Experience
        of Purchaser.
        The
        Purchaser, either alone or together with its representatives, has such
        knowledge, sophistication and experience in business and financial matters
        so as
        to be capable of evaluating the merits and risks of an investment in the
        Shares
        to be acquired by it hereunder, and has so evaluated the merits and risks
        of
        such investment.

       

      (d)  Ability
        of Purchaser to Bear Risk of Investment.
        The
        Purchaser is able to bear the economic risk of an investment in the Shares
        to be
        acquired by it hereunder and, at the present time, is able to afford a complete
        loss of such investment. 

       

      (e)  Reliance.
        The
        Purchaser understands and acknowledges that (i) the Shares being offered
        and
        sold to it hereunder are being offered and sold without registration under
        the
        Securities Act in a private placement that is exempt from the registration
        provisions of the Securities Act under Section 4(2) of the Securities Act
        and
        (ii) the availability of such exemption depends in part on, and that the
        Company
        will rely upon the accuracy and truthfulness of, the foregoing representations
        and such Purchaser hereby consents to such reliance. 

       

      (f)  Regulation
        S.
        Purchaser understands and acknowledges that (A) the Shares have
        not
        been registered under the Securities Act, are being sold in reliance upon
        an
        exemption from registration afforded by Regulation S; and that such Shares
        have
        not been registered with any state securities commission or authority; (B)
        pursuant to the requirements of Regulation S, the Shares may not be transferred,
        sold or otherwise exchanged unless in compliance with the provisions of
        Regulation S and/or pursuant to registration under the Securities Act, or
        pursuant to an available exemption hereunder; and (C) Purchaser is under
        no
        obligation to register the Shares under the Securities Act or any state
        securities law, or to take any action to make any exemption from any such
        registration provisions available.

       

      Purchaser
        is not a U.S. person and is not acquiring the Shares for the account of any
        U.S.
        person; (B) no director or executive officer of Purchaser is a national or
        citizen of the United States; and (C) it is not otherwise deemed to be a
“U.S.
        Person” within the meaning of Regulation S.

      

      Purchaser
        was not formed specifically for the purpose of acquiring the Shares purchased
        pursuant to this Agreement.

      

      Purchaser
        is purchasing the Shares for its own account and risk and not for the account
        or
        benefit of a U.S. Person as defined in Regulation S and no other person has
        any
        interest in or participation in the Shares or any right, option, security
        interest, pledge or other interest in or to the Shares. Purchaser understands,
        acknowledges and agrees that it must bear the economic risk of its investment
        in
        the Shares for an indefinite period of time and that prior to any such offer
        or
        sale, the Company may require, as a condition to effecting a transfer of
        the
        Shares, an opinion of counsel, acceptable to the
        Company,
        as to
        the registration or exemption therefrom under the Securities Act and any
        state
        securities acts, if applicable.

      

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      Purchaser
        will, after the expiration of the Restricted Period, as set forth under
        Regulation S Rule 903(b) (3) (iii) (A), offer, sell, pledge or otherwise
        transfer the Shares only in accordance with Regulation S, or pursuant to
        an
        available exemption under the Securities Act and, in any case, in accordance
        with applicable state securities laws or following the effective date of
        a
        Registration of the Shares by the Company. The transactions contemplated
        by this
        Agreement have neither been pre-arranged with a purchaser who is in the U.S.
        or
        who is a U.S. Person, nor are they part of a plan or scheme to evade the
        registration provisions of the United States federal securities
        laws.

      

      The
        offer
        leading to the sale evidenced hereby was made in an “offshore transaction.” For
        purposes of Regulation S, Purchaser understands that an “offshore transaction”
as defined under Regulation S is any offer or sale not made to a person in
        the
        United States and either (A) at the time the buy order is originated, the
        purchaser is outside the United States, or the seller or any person acting
        on
        his behalf reasonably believes that the purchaser is outside the United States;
        or (B) for purposes of (1) Rule 903 of Regulation S, the transaction is executed
        in, or on or through a physical trading floor of an established foreign exchange
        that is located outside the United States or (2) Rule 904 of Regulation S,
        the
        transaction is executed in, on or through the facilities of a designated
        offshore securities market, and neither the seller nor any person acting
        on its
        behalf knows that the transaction has been prearranged with a buyer in the
        U.S.

      

      Neither
        the
        Purchaser
        nor any
        affiliate or any person acting on the
        Purchaser's
        behalf,
        has made or is aware of any “directed selling efforts” in the United States,
        which is defined in Regulation S to be any activity undertaken for the purpose
        of, or that could reasonably be expected to have the effect of, conditioning
        the
        market in the United States for any of the Shares being purchased
        hereby.

      

      Purchaser
        understands that the Company is the seller of the Shares which are the subject
        of this Agreement, and that, for purpose of Regulation S, a “distributor” is any
        underwriter, dealer or other person who participates, pursuant to a contractual
        arrangement, in the distribution of securities offered or sold in reliance
        on
        Regulation S and that an “affiliate” is any partner, officer, director or any
        person directly or indirectly controlling, controlled by or under common
        control
        with any person in question. Purchaser agrees that Purchaser will not, during
        the Restricted Period set forth under Rule 903(b)(iii)(A), act as a distributor,
        either directly or through any affiliate, nor shall it sell, transfer,
        hypothecate or otherwise convey the Shares other than to a non-U.S. Person.
        

      

      Purchaser
        acknowledges that the Shares will bear a legend in the following
        form:

      

       

      THE
        SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN OFFERED AND SOLD IN
        AN
“OFFSHORE TRANSACTION” IN RELIANCE UPON REGULATION S AS PROMULGATED BY THE
        SECURITIES AND EXCHANGE COMMISSION. ACCORDINGLY, THE SECURITIES REPRESENTED
        BY
        THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
        (THE
“SECURITIES
        ACT”)
        AND
        MAY NOT BE TRANSFERRED OTHER THAN IN ACCORDANCE WITH REGULATION S, PURSUANT
        TO
        REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION
        FROM REGISTRATION UNDER THE SECURITIES ACT, THE AVAILABILITY OF WHICH IS
        TO BE
        ESTABLISHED TO THE SATISFACTION OF THE COMPANY. 

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      The
        Company acknowledges and agrees that the Purchaser makes no representations
        or
        warranties with respect to the transactions contemplated hereby other than
        those
        specifically set forth in this Section
        3.2.

       

       

      ARTICLE
        IV

       

       

      OTHER
        AGREEMENTS OF THE PARTIES

       

      4.1 Manner
        of Sale.
        The
        Shares are being issued pursuant to Section
        4(2) of
        the Securities Act, and Rule 506 of Regulation D and Regulation S thereunder.
        

       

      4.2 Non-Shorting.
        Purchaser agrees to not engage in short sales of the Shares nor has it engaged
        in short sales of the Shares.

      

      4.3 Notice
        of Certain Events.
        For so
        long as the Purchaser shall own any Shares, the Company shall, on a continuing
        basis, (i) advise the Purchaser promptly after obtaining knowledge of, and,
        if
        requested by the Purchaser, confirm such advice in writing, of the issuance
        by
        any state securities commission of any stop order suspending the qualification
        or exemption from qualification of the Shares, for offering or sale in any
        jurisdiction, or the initiation of any proceeding for such purpose by any
        state
        securities commission or other regulatory authority, (ii) use its best efforts
        to prevent the issuance of any stop order or order suspending the qualification
        or exemption from qualification of the Shares under any state securities
        or Blue
        Sky laws, and (iii) if at any time any state securities commission or other
        regulatory authority shall issue an order suspending the qualification or
        exemption from qualification of the Shares under any such laws,
        use its
        best efforts to obtain the withdrawal or lifting of such order at the earliest
        possible time. For so long as the Purchaser shall own any Shares and during
        any
        period in which the Company has not filed all forms, reports and documents
        required to be filed by it with the SEC, the Company shall advise the Purchaser
        promptly after obtain knowledge of any event that makes any statement of
        a
        material fact made by the Company in Section
        3.1
        or in
        the Disclosure Documents untrue or that requires the making of any additions
        to
        or changes in Section
        3.1
        or in
        the Disclosure Documents in order to make the statements therein, in the
        light
        of the circumstances under which they are made, not misleading. 

       

      4.4 Blue
        Sky Laws. The
        Company shall cooperate with the Purchaser in connection with the exemption
        from
        registration of the Shares under the securities or Blue Sky laws of such
        jurisdictions as the Purchaser
        may
        request; provided,
        however,
        that
        neither the Company nor its Subsidiaries shall be required in connection
        therewith to qualify as a foreign corporation where they are not now so
        qualified. The Company agrees that it will execute all necessary documents
        and
        pay all necessary state filing or notice fees to enable the Company to sell
        the
        Shares to the Purchaser.

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      4.5 Integration.
        The
        Company shall ensure that no Affiliate shall sell, offer for sale or solicit
        offers to buy or otherwise negotiate in respect of any security (as defined
        in
        Section 2 of the Securities Act) that would be integrated with the offer
        or sale
        of the Shares in a manner that would require the registration under the
        Securities Act of the sale of the Shares to the Purchaser.

       

      4.6 Furnishing
        of Rule 144 Materials.
        The
        Company shall, for so long as any of the Shares remain outstanding and during
        any period in which the Company is not subject to Section 13 or 15(d) of
        the
        Exchange Act, make available to any registered holder of the Shares
        (“Holder”
or
        “Holders”)
        in
        connection with any sale thereof and any prospective purchaser of such Shares
        from such Person, such information in accordance with Rule 144 or Regulation
        S
        as promulgated under the Securities Act as is required to sell the Shares
        under
        Rule 144 promulgated under the Securities Act.

       

      4.7 Solicitation
        Materials.
        The
        Company shall not (i) distribute any offering materials in connection with
        the
        offering and sale of the Shares other than the Disclosure Documents and any
        amendments and supplements thereto prepared in compliance herewith or (ii)
        solicit any offer to buy or sell the Shares or, if applicable, by
        means
        of any form of general solicitation or advertising.

       

      4.8 Listing
        of Common Stock.
        If the
        Common Stock is or shall become listed on the OTCBB or on another exchange,
        the
        Company shall (a) use its best efforts to maintain the listing of its Common
        Stock on the OTCBB or such other exchange on which the Common Stock is then
        listed until two (2)
        years
        from the date hereof, and (b) shall provide to the Purchaser evidence of
        such
        listing.

       

      4.9 Capitalization
        and Restructure Plan.
        The
        Company, with Board approval, shall implement the Capitalization and Restructure
        Plan as documented, agreed to and attached as Schedule 3.

      

      4.10 Indemnification.

       

      (a) Indemnification

       

      (i)  The
        Company shall, notwithstanding termination of this Agreement and without
        limitation as to time, indemnify and hold harmless the Purchaser and its
        officers, directors, agents, employees and affiliates, each Person who controls
        or
        the
        Purchaser (within the meaning of Section 15 of the Securities Act or Section
        20
        of the Exchange Act) (each such Person, a “Control
        Person”)
        and
        the officers, directors, agents, employees and affiliates of each such Control
        Person, to the fullest extent permitted by applicable law, from and against
        any
        and all losses, claims, damages, liabilities, costs (including, without
        limitation, costs of preparation and attorneys’ fees) and expenses
        (collectively, “Losses”),
        as
        incurred, arising out of, or relating to, a breach or breaches of any
        representation, warranty, covenant or agreement by the Company under this
        Agreement or any other Transaction Document.

       

      (ii)  The
        Purchaser shall, notwithstanding termination of this Agreement and without
        limitation as to time, indemnify and hold harmless the Company, its officers,
        directors, agents and employees, each Control Person and the officers,
        directors, agents and employees of each Control Person, to the fullest extent
        permitted by application law, from and against any and all Losses, as incurred,
        arising out of, or relating to, a breach or breaches of any representation,
        warranty, covenant or agreement by the Purchaser under this Agreement or
        any
        other
        Transaction Document.

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      (b) Conduct
        of Indemnification Proceedings.
        If any
        Proceeding shall be brought or asserted against any Person entitled to indemnity
        hereunder (an “Indemnified
        Party”),
        such
        Indemnified Party promptly shall notify the Person from whom indemnity is
        sought
        (the “Indemnifying
        Party”)
        in
        writing, and the Indemnifying Party shall assume the defense thereof, including
        the employment of counsel reasonably satisfactory to the Indemnified Party
        and
        the payment of all fees and expenses incurred in connection with defense
        thereof; provided, that the failure of any Indemnified Party to give such
        notice
        shall not relieve the Indemnifying Party of its obligations or liabilities
        pursuant to this Agreement, except (and only) to the extent that it shall
        be
        finally determined by a court of competent jurisdiction (which determination
        is
        not subject to appeal or further review) that such failure shall have
        proximately and materially adversely prejudiced the Indemnifying
        Party.

       

      An
        Indemnified Party shall have the right to employ separate counsel in any
        such
        Proceeding and to participate in the defense thereof, but the fees and expenses
        of such counsel shall be at the expense of such Indemnified Party or Parties
        unless: (1) the Indemnifying Party has agreed to pay such fees and expenses;
        or
        (2) the Indemnifying Party shall have failed promptly to assume the defense
        of
        such Proceeding and to employ counsel reasonably satisfactory to such
        Indemnified Party in any such Proceeding; or (3) the named parties to any
        such
        Proceeding (including any impleaded parties) include both such Indemnified
        Party
        and the Indemnifying Party, and such Indemnified Party shall have been advised
        by counsel that a conflict of interest is likely to exist if the same counsel
        were to represent such Indemnified Party and the Indemnifying Party (in which
        case, if such Indemnified Party notifies the Indemnifying Party in writing
        that
        it elects to employ separate counsel at the expense of the Indemnifying Party,
        the Indemnifying Party shall not have the right to assume the defense of
        the
        claim against the Indemnified Party but will retain the right to control
        the
        overall Proceedings out of which the claim arose and such counsel employed
        by
        the Indemnified Party shall be at the expense of the Indemnifying Party).
        The
        Indemnifying Party shall not be liable for any settlement of any such Proceeding
        affected without its written consent, which consent shall not be unreasonably
        withheld. No Indemnifying Party shall, without the prior written consent
        of the
        Indemnified Party, effect any settlement of any pending Proceeding in respect
        of
        which any Indemnified Party is a party, unless such settlement includes an
        unconditional release of such Indemnified Party from all liability on claims
        that are the subject matter of such Proceeding.

       

      All
        fees
        and expenses of the Indemnified Party to which the Indemnified Party is entitled
        hereunder (including reasonable fees and expenses to the extent incurred
        in
        connection with investigating or preparing to defend such Proceeding in a
        manner
        not inconsistent with this Section) shall be paid to the Indemnified Party,
        as
        incurred, within ten (10) Business Days of written notice thereof to the
        Indemnifying Party.

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      No
        right
        of indemnification under this Section shall be available as to a particular
        Indemnified Party if there is a non-appealable final judicial determination
        that
        such Losses arise solely out of the negligence or bad faith of such Indemnified
        Party in performing the obligations of such Indemnified Party under this
        Agreement or a breach by such Indemnified Party of its obligations under
        this
        Agreement.

       

      (c) Non-Exclusivity.
        The
        indemnity and agreements contained in this Section are in addition to any
        obligation or liability that the Indemnifying Parties may have to the
        Indemnified Parties. 

       

      ARTICLE
        V

       

      MISCELLANEOUS

       

      5.1 Fees
        and Expenses.
        Except
        as set forth in this Agreement, each party shall pay the fees and expenses
        of
        its advisers, counsel, accountants and other experts, if any, and all other
        expenses incurred by such party incident to the negotiation, preparation,
        execution, delivery and performance of this Agreement. The Company shall
        pay all
        stamp and other taxes and duties levied in connection with the issuance of
        the
        Shares (and, upon conversion or exercise thereof, the Shares) pursuant hereto.
        The
        Purchaser shall be responsible for any taxes payable by the Purchaser that
        may
        arise as a result of the investment hereunder or the transactions contemplated
        by this Agreement or any other Transaction Document. The Company shall pay
        all
        costs, expenses, fees and all taxes incident to and in connection with: (A)
        the
        issuance and delivery of the Shares, (B) the exemption from registration
        of the
        Shares for offer and sale to the Purchaser under the securities or Blue Sky
        laws
        of the applicable jurisdictions, (C)
        the
        preparation of certificates for the Shares (including, without limitation,
        printing and engraving thereof), and (D) all fees and expenses of counsel
        and
        accountants of the Company. The Company shall pay to Purchaser the fees which
        are defined in the
        Schedule 1(a)
        executed
        by the Company and Purchaser,
        said
        payments to be remitted upon the execution of this Agreement or paid from
        the
        gross proceeds due the Company at time of payment of the Purchase Price to
        the
        Company.

      

      5.2 Entire
        Agreement.
        This
        Agreement, together with all of the Exhibits and Schedules annexed hereto,
        and
        any other Transaction Document contains the entire understanding of the parties
        with respect to the subject matter hereof and supersede all prior agreements
        and
        understandings, oral or written, with respect to such matters. This Agreement
        shall be deemed to have been drafted and negotiated by both parties hereto
        and
        no presumptions as to interpretation, construction or enforceability shall
        be
        made by or against either party in such regard.

       

      5.3 Notices.
        Any
        notice or other communication required or permitted to be given hereunder
        shall
        be in writing and shall be deemed to have been duly given (a) when delivered
        to
        the address designated below by hand or by nationally recognized overnight
        courier services (costs prepaid); or (b) upon facsimile transmission (with
        written transmission confirmation report) at the number designated below
        (if
        delivered on a Business Day during normal business hours where such notice
        is to
        be received), or the first Business Day following such delivery (if delivered
        other than on a Business Day during normal business hours where such notice
        is
        to be received) whichever shall first occur. The addresses for such
        communications shall be:

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      

      

      

      
        	 	If to the Company: 	
                
                  Airbee
                    Wireless, Inc.

                

              

      

      
        	 	 	
                Rockville,
                  Maryland 20850

              

        	 	 	Phone: (301) 517-1860

        	 	 	Fax: (301) 517-1861 

      

       

       

      
        	 	
                With
                  copies to:

              	
                Stradling,
                  Yocca, Carlson & Rauth

              

      

      
        	 	 	
                660
                  Newport Center Drive, Suite 1600

              

      

      
        	 	 	
                Newport
                  Beach, CA 92660

              

      

      
        	 	 	
                Attn:
                  Shivbir S. Grewal, Esq.

              

      

      
        	 	 	
                Phone:
                  (949) 725-4119

              

      

      
        	 	 	
                Fax:
                  (949) 823-5119

              

      

       

       

      
        	 	 	
                Allen
                  & Associates, LLC

              

      

      
        	 	 	
                12400
                  Wilshire Blvd. Suite 1080

              

      

      
        	 	 	
                Los
                  Angles, CA 90025

              

      

      
        	 	 	
                Attn:
                  Marcia Allen

              

      

      
        	 	 	
                Phone:
                  (310)
                  315-4356

              

      

      
        	 	 	
                Fax:
                  (310)
                  861-5181

              

      

       

       

      
        
          	 	If
                  to the Purchaser:	
                  
                    Mercatus
                      & Partners,
                      Limited

                  

                

        

        
          	 	 	115
                  Mauldin Dr.

          	 	 	
                  Alpharetta,
                    GA
                    30004

                

          	 	 	Phone: (718) 841-7204

          	 	 	Fax: (718) 841-7207

          	 	 	Attn: Mathew Tullis

          	 	 	 

          	 	 	 

          	 	With copies to:	Mercatus & Partners,
                  Limited

          	 	 	115 Mauldin Dr

          	 	 	Alpharetta, GA
                  30004

          	 	 	Attn:
                  Cary Massi

          	 	 	 

          	 	 	 

          	 	 	 

        

      

       

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      

        

      
        	 	 	 

      

      
        	 	 	
                Waterford
                  Law Group

              

      

      
        	 	 	
                112
                  Westwood Place, Suite 200

              

      

      
        	 	 	
                Brentwood,
                  TN 37027

              

      

      
        	 	 	
                Phone:
                  (615) 373-2500

              

      

      
        	 	 	
                Fax:
                  (615) 373-2574

              

      

      
        	 	 	
                Attn:
                  Kurt Beasley

              

      

      

      

      5.4 Amendments;
        Waivers.
        No
        provision of this Agreement may be waived or amended except in a written
        instrument signed, in the case of an amendment, by both the Company and the
        Purchaser, or, in the case of a waiver, by the party against whom enforcement
        of
        any such waiver is sought. No waiver of any default with respect to any
        provision, condition or requirement of this Agreement shall be deemed to
        be a
        continuing waiver in the future or a waiver of any other provision, condition
        or
        requirement hereof, nor shall any delay or omission of either party to exercise
        any right hereunder in any manner impair the exercise of any such right accruing
        to it thereafter.

       

      5.5 Headings.
        The
        headings herein are for convenience only, do not constitute part of this
        Agreement and shall not be deemed to limit or affect any of the provisions
        hereof.

       

      5.6 Successors
        and Assigns.
        This
        Agreement shall be binding upon and inure to the benefit of the parties and
        their respective successors and permitted assigns. The assignment by a party
        of
        this Agreement or any rights hereunder shall not affect the obligations of
        such
        party under this Agreement.

       

      5.7 No
        Third Party Beneficiaries.
        This
        Agreement is intended for the benefit of the parties hereto and their respective
        permitted successors and assigns and is not for the benefit of, nor may any
        provision hereof be enforced by, any other person.

       

      5.8 Governing
        Law; Venue; Service of Process.
        The
        parties hereto acknowledge that the transactions contemplated by this Agreement
        and the exhibits hereto bear a reasonable relation to the State of New York.
        The
        parties hereto agree that the internal laws of the State of New York shall
        govern this Agreement and the exhibits hereto, including, but not limited
        to,
        all issues related to usury. Any action to enforce the terms of this Agreement
        or any of its exhibits, or any other Transaction Document shall be brought
        exclusively in the state and/or federal courts situate in the County and
        State
        of New York. Service of process in any action by the Purchaser to enforce
        the
        terms of this Agreement may be made by serving a copy of the summons and
        complaint, in addition to any other relevant documents, by commercial overnight
        courier to the Company at its principal address set forth in this
        Agreement.

       

      5.9 Survival.
        The
        representations and warranties of the Company and the Purchaser contained
        in
        this agreement shall survive the Closing. The provisions contained in Sections
        4.9 (Indemnification), 5.1 (Fees and Expenses), 5.11 (Publicity), 5.13
        (Limitation of Remedies), and 5.15 (Delivery of Purchase Price and Recall
        of
        Shares) shall survive termination of this Agreement. 

       

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      5.10 Counterpart
        Signatures.
        This
        Agreement may be executed in two or more counterparts, all of which when
        taken
        together shall be considered one and the same agreement and shall become
        effective when counterparts have been signed by each party and delivered
        to the
        other party, it being understood that both parties need not sign the same
        counterpart. In the event that any signature is delivered by facsimile
        transmission, such signature shall create a valid and binding obligation
        of the
        party executing (or on whose behalf such signature is executed) the same
        with
        the same force and effect as if such facsimile signature page were an original
        thereof.

       

      5.11 Publicity.
        The
        Company and the Purchaser shall consult with each other in issuing any press
        releases or otherwise making public statements with respect to the transactions
        contemplated hereby and neither party shall issue any such press release or
        otherwise make any such public statement without the prior written consent
        of
        the other, which consent shall not be unreasonably withheld or delayed; unless
        counsel for the disclosing party deems such public statement to be required
        by
        applicable federal and/or state securities laws. The Company shall provide
        the
        Purchaser with a copy of its intended communication or filing prior to making
        it
        public and giving Purchaser sufficient time to discuss it with the Company.
        Except as otherwise required by applicable law or regulation, the Company
        will
        not disclose to any third party (excluding its legal counsel, accountants
        and
        representatives) the names of the Purchaser.

       

      5.12 Severability.
        In case
        any one or more of the provisions of this Agreement shall be invalid or
        unenforceable in any respect, the validity and enforceability of the remaining
        terms and provisions of this Agreement shall not in any way be affected or
        impaired thereby and the parties will attempt to agree upon a valid and
        enforceable provision which shall be a reasonable substitute therefore, and
        upon
        so agreeing, shall incorporate such substitute provision in this
        Agreement.

       

      5.13 Limitation
        of Remedies - Funding.
        Without
        regard to any other terms in this agreement, in the event that the transactions
        contemplated herein are not consummated and funding does not occur within
        the
        thirty (30) day period, the sole remedy for both parties under this Agreement
        shall be the return of the Shares in accordance with Section 5.15.

       

      5.14
         Delivery
        of Securities.
        The
        Company shall deliver the Shares directly to the Custodian, in Purchaser’s name,
        within five days of the execution of this Agreement in accordance with the
        directions provided in Schedule
        1.

       

      5.15 Delivery
        of Purchase Price and Recall of Shares.
        The
        Purchaser shall, within thirty (30) days following the delivery of the Shares
        to
        the Custodian, subject to the execution of Schedule
        2
        by both
        Company and Purchaser, pay the Purchase Price to the Company via wire transfer
        to the directed wire transfer bank and account as specified in the Funding
        Addendum Schedule
        2 which
        is
        attached hereto.  

      

      If
        the
        Purchase Price is not received by the Company within thirty (30) days of
        the
        delivery of the Shares to the Custodian in the name of the Purchaser, the
        Company may, at its discretion, demand recall of the Shares, issue
        or
        cause to be issued a stop transfer order or other order impeding the sale
        and
        delivery of any of the Shares, and terminate this Agreement.
        The
        Company may recall the Shares by providing notice to the Purchaser pursuant
        to
        Section 5.3. If the Company recalls the Shares, the Purchaser will use its
        best
        efforts, and will use its best efforts to cause the Custodian to, transmit
        and
        deliver the Shares to the Company within 20 days following the deliver of
        the
        recall notice pursuant to Section 5.3. 

      

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

      5.16. Delivery
        of Opinion of Counsel. The
        Company hereby agrees that it
        hereby
binds
        itself,
        if
        requested in writing to the aforementioned address of the Company, by the
        Purchaser
        or their
        designate or assignee, that it
        shall
        deliver, within five (5) days of such demand, an opinion of counsel regarding
        the transferability or status of the Shares;
        provided, however, that if the Company’s counsel requires additional information
        or representations from or with respect to the Purchaser and/or its designate
        or
        assignee, then such opinion shall not be required until five (5) days following
        the delivery of such additional information or representations. 

       

      5.17. Duty
        for Due Diligence. The
        Company hereby agrees that it,
        and on
        behalf, its
        transfer
        agent, and any accessed management of the Company by the Purchaser or designee
        banks or purchasers shall cooperate in the verification of the originating
        nature of the Shares,
        the
        restriction period of the Shares,
        and the
        transferability of the Shares
        during
        the due diligence period of the Shares
        involved
        in this transaction. Such
        failure of information to said parties is acknowledged as grounds for rejections
        by the Purchaser or their designees or assignees as described above.

      

       

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
        executed as of the date first indicated above.

       

      

      
        	 	 	 
	 	Company:
	 	Airbee Wireless, Inc.: 
	 
 	 
 	 
 
	 	By:  	/s/ Sundaresan
                Raja
	 	
                

                Name:
                  Sundaresan Raja

                Title:
Chief
                  Executive Officer

              
	 	 

      

      

      
        	 	 	 
	 	
                Purchaser:
                  

              
	 	Mercatus & Partners, Limited
	 
 	     
                
 	 
 
	 	/s/ R.
                Matthew Tullis   
	 	
                
                  

                

                By:
                  R. Matthew Tullis POA on behalf of

                Mercatus
                  & Partners, Limited

              
	 	 

      

       

      
        
           

        

        
          19Published
      CUSIP Number: 882492AA9

     

    FIRST
      AMENDED AND RESTATED CREDIT AGREEMENT

     

    Dated
      as
      of August 15, 2007

     

    among

     

    TEXAS
      INDUSTRIES, INC.,
as
      the
      Borrower,

     

    BANK
      OF
      AMERICA, N.A.,

    as
      Administrative Agent, Swing Line Lender
and

    L/C
      Issuer,

     

    UBS
      SECURITIES LLC,

    as
      Syndication Agent,

     

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION,

    COMERICA
      BANK,

    and

    WACHOVIA
      BANK, NATIONAL ASSOCIATION,

    as
      Co-Documentation Agents,

     

    and

     

    The
      Other
      Lenders Party Hereto

     

    BANC
      OF
      AMERICA SECURITIES LLC,

    as

    Sole
      Lead
      Arranger and Sole Book Manager

     

    
      

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      TABLE
        OF CONTENTS

      

        
          	
                  Section

                	 	 	 	
                  Page

                
	 	 	 	 	 
	
                  ARTICLE
                    I.

                	
                       

                	
                  DEFINITIONS
                    AND ACCOUNTING TERMS

                	
                       

                	
                  1

                
	 	 	 	 	 
	
                  1.01

                	 	
                  Defined
                    Terms

                	 	
                  1

                
	
                  1.02

                	 	
                  Other
                    Interpretive Provisions

                	 	
                  24

                
	
                  1.03

                	 	
                  Accounting
                    Terms.

                	 	
                  25

                
	
                  1.04

                	 	
                  Rounding

                	 	
                  25

                
	
                  1.05

                	 	
                  Times
                    of Day

                	 	
                  26

                
	
                  1.06

                	 	
                  Letter
                    of Credit Amounts

                	 	
                  26

                
	 	 	 	 	 
	
                  ARTICLE
                    II.

                	 	
                  THE
                    COMMITMENTS AND CREDIT EXTENSIONS

                	 	
                  26

                
	 	 	 	 	 
	
                  2.01

                	 	
                  Revolving
                    Loans

                	 	
                  26

                
	
                  2.02

                	 	
                  Borrowings,
                    Conversions and Continuations of Loans.

                	 	
                  26

                
	
                  2.03

                	 	
                  Letters
                    of Credit.

                	 	
                  28

                
	
                  2.04

                	 	
                  Swing
                    Line Loans.

                	 	
                  36

                
	
                  2.05

                	 	
                  Prepayments.

                	 	
                  39

                
	
                  2.06

                	 	
                  Termination
                    or Reduction of Commitments

                	 	
                  41

                
	
                  2.07

                	 	
                  Repayment
                    of Loans.

                	 	
                  41

                
	
                  2.08

                	 	
                  Interest.

                	 	
                  41

                
	
                  2.09

                	 	
                  Fees

                	 	
                  42

                
	
                  2.10

                	 	
                  Computation
                    of Interest and Fees; Retroactive Adjustments of Applicable
                    Rate.

                	 	
                  43

                
	
                  2.11

                	 	
                  Evidence
                    of Debt.

                	 	
                  43

                
	
                  2.12

                	 	
                  Payments
                    Generally; Administrative Agent’s Clawback.

                	 	
                  44

                
	
                  2.13

                	 	
                  Sharing
                    of Payments by Lenders

                	 	
                  46

                
	
                  2.14

                	 	
                  Increase
                    in Commitments.

                	 	
                  47

                
	 	 	 	 	 
	
                  ARTICLE
                    III.

                	 	
                  TAXES,
                    YIELD PROTECTION AND ILLEGALITY

                	 	
                  48

                
	 	 	 	 	 
	
                  3.01

                	 	
                  Taxes.

                	 	
                  48

                
	
                  3.02

                	 	
                  Illegality

                	 	
                  50

                
	
                  3.03

                	 	
                  Inability
                    to Determine Rates

                	 	
                  50

                
	
                  3.04

                	 	
                  Increased
                    Costs; Reserves on Eurodollar Rate Loans.

                	 	
                  51

                
	
                  3.05

                	 	
                  Compensation
                    for Losses

                	 	
                  52

                
	
                  3.06

                	 	
                  Mitigation
                    Obligations; Replacement of Lenders.

                	 	
                  53

                
	
                  3.07

                	 	
                  Survival

                	 	
                  53

                
	 	 	 	 	 
	
                  ARTICLE
                    IV.

                	 	
                  CONDITIONS
                    PRECEDENT TO CREDIT EXTENSIONS

                	 	
                  53

                
	 	 	 	 	 
	
                  4.01

                	 	
                  Conditions
                    of Initial Credit Extension

                	 	
                  53

                
	
                  4.02

                	 	
                  Conditions
                    to all Credit Extensions

                	 	
                  55

                
	 	 	 	 	 
	
                  ARTICLE
                    V.

                	 	
                  REPRESENTATIONS
                    AND WARRANTIES

                	 	
                  56

                
	 	 	 	 	 
	
                  5.01

                	 	
                  Existence,
                    Qualification and Power; Compliance with Laws

                	 	
                  56

                
	
                  5.02

                	 	
                  Authorization;
                    No Contravention

                	 	
                  56

                
	
                  5.03

                	 	
                  Governmental
                    Authorization; Other Consents

                	 	
                  57

                

        

         

        
          
            
            

          

          
            i

            
              

            

          

          
            
            

          

        

         

        
          	
                  5.04

                	 	
                  Binding
                    Effect

                	 	
                  57

                
	
                  5.05

                	 	
                  Financial
                    Statements; No Material Adverse Effect; No Internal Control
                    Event.

                	 	
                  57

                
	
                  5.06

                	 	
                  Litigation

                	 	
                  57

                
	
                  5.07

                	 	
                  No
                    Default

                	 	
                  57

                
	
                  5.08

                	 	
                  Ownership
                    of Property; Liens

                	 	
                  58

                
	
                  5.09

                	 	
                  Environmental
                    Compliance.

                	 	
                  58

                
	
                  5.10

                	 	
                  Insurance

                	 	
                  59

                
	
                  5.11

                	 	
                  Taxes

                	 	
                  59

                
	
                  5.12

                	 	
                  ERISA
                    Compliance.

                	 	
                  59

                
	
                  5.13

                	 	
                  Subsidiaries;
                    Equity Interests

                	 	
                  60

                
	
                  5.14

                	 	
                  Margin
                    Regulations; Investment Company Act.

                	 	
                  60

                
	
                  5.15

                	 	
                  Disclosure

                	 	
                  60

                
	
                  5.16

                	 	
                  Compliance
                    with Laws

                	 	
                  61

                
	
                  5.17

                	 	
                  Intellectual
                    Property; Licenses, Etc

                	 	
                  61

                
	
                  5.18

                	 	
                  Common
                    Enterprise

                	 	
                  61

                
	
                  5.19

                	 	
                  Solvent

                	 	
                  61

                
	
                  5.20

                	 	
                  Taxpayer
                    Identification Number

                	 	
                  61

                
	 	 	 	 	 
	
                  ARTICLE
                    VI.

                	 	
                  AFFIRMATIVE
                    COVENANTS

                	 	
                  62

                
	 	 	 	 	 
	
                  6.01

                	 	
                  Financial
                    Statements

                	 	
                  62

                
	
                  6.02

                	 	
                  Certificates;
                    Other Information

                	 	
                  63

                
	
                  6.03

                	 	
                  Notices

                	 	
                  65

                
	
                  6.04

                	 	
                  Payment
                    of Obligations

                	 	
                  65

                
	
                  6.05

                	 	
                  Preservation
                    of Existence, Etc

                	 	
                  65

                
	
                  6.06

                	 	
                  Maintenance
                    of Properties

                	 	
                  66

                
	
                  6.07

                	 	
                  Maintenance
                    of Insurance

                	 	
                  66

                
	
                  6.08

                	 	
                  Compliance
                    with Laws

                	 	
                  66

                
	
                  6.09

                	 	
                  Books
                    and Records

                	 	
                  66

                
	
                  6.10

                	 	
                  Inspection
                    Rights

                	 	
                  66

                
	
                  6.11

                	 	
                  Use
                    of Proceeds

                	 	
                  67

                
	
                  6.12

                	 	
                  Further
                    Assurances

                	 	
                  67

                
	
                  6.13

                	 	
                  Additional
                    Subsidiaries

                	 	
                  67

                
	 	 	 	 	 
	
                  ARTICLE
                    VII.

                	 	
                  NEGATIVE
                    COVENANTS

                	 	
                  67

                
	 	 	 	 	 
	
                  7.01

                	 	
                  Liens

                	 	
                  67

                
	
                  7.02

                	 	
                  Investments

                	 	
                  67

                
	
                  7.03

                	 	
                  Debt

                	 	
                  68

                
	
                  7.04

                	 	
                  Fundamental
                    Changes

                	 	
                  69

                
	
                  7.05

                	 	
                  Dispositions

                	 	
                  70

                
	
                  7.06

                	 	
                  Restricted
                    Payments

                	 	
                  70

                
	
                  7.07

                	 	
                  Change
                    in Nature of Business

                	 	
                  71

                
	
                  7.08

                	 	
                  Transactions
                    with Affiliates

                	 	
                  71

                
	
                  7.09

                	 	
                  Burdensome
                    Agreements

                	 	
                  71

                
	
                  7.10

                	 	
                  Use
                    of Proceeds

                	 	
                  71

                
	
                  7.11

                	 	
                  Financial
                    Covenants.

                	 	
                  71

                

        

         

        
          
            
            

          

          
            ii

            
              

            

          

          
            
            

          

        

         

        
          	
                  7.12

                	 	
                  Sale
                    and Leaseback

                	 	
                  72

                
	
                  7.13

                	 	
                  Sale
                    or Discount of Receivables

                	 	
                  72

                
	
                  7.14

                	 	
                  Debt
                    Modifications

                	 	
                  72

                
	
                  7.15

                	 	
                  Debt
                    Payments

                	 	
                  72

                
	 	 	 	 	 
	
                  ARTICLE
                    VIII.

                	 	
                  EVENTS
                    OF DEFAULT AND REMEDIES

                	 	
                  72

                
	 	 	 	 	 
	
                  8.01

                	 	
                  Events
                    of Default

                	 	
                  72

                
	
                  8.02

                	 	
                  Remedies
                    Upon Event of Default

                	 	
                  74

                
	
                  8.03

                	 	
                  Application
                    of Funds

                	 	
                  75

                
	 	 	 	 	 
	
                  ARTICLE
                    IX.

                	 	
                  ADMINISTRATIVE
                    AGENT

                	 	
                  76

                
	 	 	 	 	 
	
                  9.01

                	 	
                  Appointment
                    and Authority.

                	 	
                  76

                
	
                  9.02

                	 	
                  Rights
                    as a Lender

                	 	
                  76

                
	
                  9.03

                	 	
                  Exculpatory
                    Provisions

                	 	
                  76

                
	
                  9.04

                	 	
                  Reliance
                    by Administrative Agent.

                	 	
                  77

                
	
                  9.05

                	 	
                  Delegation
                    of Duties

                	 	
                  78

                
	
                  9.06

                	 	
                  Resignation
                    of Administrative Agent

                	 	
                  78

                
	
                  9.07

                	 	
                  Non-Reliance
                    on Administrative Agent and Other Lenders

                	 	
                  79

                
	
                  9.08

                	 	
                  No
                    Other Duties, Etc

                	 	
                  79

                
	
                  9.09

                	 	
                  Administrative
                    Agent May File Proofs of Claim

                	 	
                  79

                
	
                  9.10

                	 	
                  Guaranty
                    Matters

                	 	
                  80

                
	 	 	 	 	 
	
                  ARTICLE
                    X.

                	 	
                  MISCELLANEOUS

                	 	
                  80

                
	 	 	 	 	 
	
                  10.01

                	 	
                  Amendments,
                    Etc

                	 	
                  80

                
	
                  10.02

                	 	
                  Notices;
                    Effectiveness; Electronic Communication.

                	 	
                  81

                
	
                  10.03

                	 	
                  No
                    Waiver; Cumulative Remedies

                	 	
                  84

                
	
                  10.04

                	 	
                  Expenses;
                    Indemnity; Damage Waiver.

                	 	
                  84

                
	
                  10.05

                	 	
                  Payments
                    Set Aside

                	 	
                  86

                
	
                  10.06

                	 	
                  Successors
                    and Assigns.

                	 	
                  86

                
	
                  10.07

                	 	
                  Treatment
                    of Certain Information; Confidentiality

                	 	
                  91

                
	
                  10.08

                	 	
                  Right
                    of Setoff

                	 	
                  91

                
	
                  10.09

                	 	
                  Interest
                    Rate Limitation

                	 	
                  92

                
	
                  10.10

                	 	
                  Counterparts;
                    Integration; Effectiveness

                	 	
                  92

                
	
                  10.11

                	 	
                  Survival
                    of Representations and Warranties

                	 	
                  92

                
	
                  10.12

                	 	
                  Severability

                	 	
                  93

                
	
                  10.13

                	 	
                  Replacement
                    of Lenders

                	 	
                  93

                
	
                  10.14

                	 	
                  Governing
                    Law; Jurisdiction; Etc.

                	 	
                  94

                
	
                  10.15

                	 	
                  Waiver
                    of Jury Trial

                	 	
                  95

                
	
                  10.16

                	 	
                  No
                    Advisory or Fiduciary Responsibility

                	 	
                  95

                
	
                  10.17

                	 	
                  USA
                    PATRIOT Act Notice

                	 	
                  95

                
	
                  10.18

                	 	
                  ENTIRE
                    AGREEMENT

                	 	
                  96

                
	 	 	 	 	 
	
                  SIGNATURES
                    

                	 	
                  S-1

                	 	 

        

        
          
             

          

          
            
              
              

            

            
              iii

              
                

              

            

            
              
              

            

          

           

        

        
          	SCHEDULES	 	 	 	 
	 	 	 	 	 
	
                  1.01

                	 	
                  Existing
                    Letters of Credit

                	 	 
	2.01	 	Commitments
                  and
                  Applicable Percentages	 	 
	5.13	 	Subsidiaries;
                  Other
                  Equity Investments; Equity Interests in the Borrower	 	 
	7.01	 	
                  Existing
                    Liens

                	 	 
	7.02	(d)	
                  Existing
                    Investments

                	 	 
	7.03	
                  (c)

                	
                   Existing
                    Debt

                	 	 
	10.02	 	
                  Administrative
                    Agent’s Office; Certain Addresses for Notices

                	 	 
	
                	 	
                	 	 
	EXHIBITS	 	 	 	 
	 	 	 	 	 
	 	 	
                  Form
                    of

                	 	 
	 	 	 	 	 
	A	 	Assignment
                  and
                  Assumption	 	 
	B	 	
                  Compliance
                    Certificate

                	 	 
	C	 	Guaranty	 	 
	D	 	Opinion
                  Matters	 	 
	E	 	Revolving
                  Loan
                  Note	 	 
	 F	 	Revolving
                  Loan
                  Notice 	 	 
	 G	 	Swing
                  Line Loan
                  Notice 	 	 
	 H	 	Swing
                  Line
                  Note 	 	 

        

      

       

      
        
          
          

        

        
          iv

          
            

          

        

        
          
          

        

      

       

      FIRST
        AMENDED AND RESTATED CREDIT
        AGREEMENT

    

     

    This
      FIRST AMENDED AND RESTATED CREDIT AGREEMENT (“Agreement”)
      is
      entered into as of August 15, 2007, among TEXAS INDUSTRIES, INC., a
      Delaware corporation (the “Borrower”),
      each
      lender from time to time party hereto (collectively, the “Lenders”
and
      individually, a “Lender”),
      and
      BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C
      Issuer.

     

    The
      Borrower, the Lenders and the Administrative Agent are parties to that certain
      Credit Agreement, dated as of June 30, 2005 (as heretofore amended and
      modified, the “Existing
      Credit Agreement”).

     

    The
      parties hereto wish to amend and restate the Credit Agreement in its entirety
      as
      provided herein.

     

    In
      consideration of the mutual covenants and agreements herein contained, the
      parties hereto covenant and agree that the Existing Credit Agreement is hereby
      amended and restated in its entirety as follows:

     

    ARTICLE
      I.

    DEFINITIONS
      AND ACCOUNTING TERMS

     

    1.01 Defined
      Terms.
      As used
      in this Agreement, the following terms shall have the meanings set forth
      below:

     

    “Acquisition”
means
      the acquisition by any Person of (a) a majority of the Equity Interests of
      another Person, (b) all or substantially all of the assets of another
      Person or any operating division of another Person or (c) all or
      substantially all of a line of business of another Person, in each case whether
      or not involving a merger or consolidating with such other Person.

     

    “Acquisition
      Consideration”
means
      the consideration given by the Borrower or any of its Subsidiaries for an
      Acquisition, including but not limited to the sum of (without duplication)
      (a) the fair market value of any cash, property (other than Equity
      Interests issued in respect of such Acquisition) or services given, plus
      (b) the amount of any Debt assumed, incurred or guaranteed (to the extent
      not otherwise included) in connection with such Acquisition by the Borrower
      or
      any of its Subsidiaries. 

     

    “Adjusted
      Net Earnings From Operations”
means,
      with respect to any fiscal period of any Person (the “subject Person”), net
      income of the subject Person on a consolidated basis after provision for income
      taxes for such fiscal period, as determined in conformity with GAAP and reported
      on the financial statements for such fiscal period, excluding any and all of
      the
      following included in such net income: (a) gain, to the extent in excess of
      $5,000,000, or loss arising from the sale of any capital assets (including
      sales
      of surplus operating assets and real estate); (b) gain or loss arising from
      any write-up or write-down in the book value of any asset; (c) earnings of
      any other Person, substantially all of the assets of which have been acquired
      by
      the subject Person in any manner, to the extent realized by such other Person
      prior to the date of Acquisition; (d) earnings of any other Person
      (excluding Wholly-Owned Subsidiaries) in which the subject Person has an
      ownership interest unless (and only to the extent) such 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

      earnings
        shall actually have been received by the subject Person in the form of cash
        distributions; (e) earnings of any Person to which assets of the subject
        Person shall have been sold, transferred, or disposed of, or into which subject
        Person shall have been merged, or which has been a party with the subject
        Person
        to any consolidation or other form of reorganization, prior to the date of
        such
        transaction; (f) gain arising from the acquisition of debt or equity
        securities of the subject Person or from cancellation or forgiveness of Debt;
        and (g) gain or loss arising from extraordinary items, as determined in
        conformity with GAAP, or from any other non-recurring
        transaction.

    

     

    “Administrative
      Agent”
means
      Bank of America in its capacity as administrative agent under any of the Loan
      Documents, or any successor administrative agent.

     

    “Administrative
      Agent’s
      Office”
means
      the Administrative Agent’s
      address
      and, as appropriate, account as set forth on Schedule 10.02,
      or such
      other address or account as the Administrative Agent may from time to time
      notify to the Borrower and the Lenders.

     

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

     

    “Affiliate”
means,
      with respect to any Person, another Person that directly, or indirectly through
      one or more intermediaries, Controls or is Controlled by or is under common
      Control with the Person specified.

     

    “Aggregate
      Commitments”
means
      the Commitments of all Lenders.

     

    “Agreement”
means
      this First Amended and Restated Credit Agreement.

     

    “Applicable
      Law”
means
      (a) in respect of any Person, all provisions of Laws applicable to such
      Person, and all orders and decrees of all courts and determinations of
      arbitrators applicable to such Person and (b) in respect of contracts made
      or performed in the State of Texas, “Applicable
      Law”
shall
      also mean the laws of the United States of America, including, without
      limitation the foregoing, 12 USC Sections 85 and 86, as amended to the
      date hereof and as the same may be amended at any time and from time to time
      hereafter, and any other statute of the United States of America now or at
      any
      time hereafter prescribing the maximum rates of interest on loans and extensions
      of credit, and the laws of the State of Texas.

     

    “Applicable
      Percentage”
means,
      with respect to each Lender at any time, the percentage (carried out to the
      ninth decimal place), the numerator of which is the amount of the Commitment
      of
      such Lender at such time and the denominator of which is the Aggregate
      Commitments at such time; provided
      that if
      the commitment of each Lender to make Loans and the obligation of the L/C Issuer
      to make L/C Credit Extensions have been terminated pursuant to Section 8.02
      or if
      the Aggregate Commitments have expired, then the Applicable Percentage of each
      Lender shall be determined based on the Applicable Percentage of such Lender
      most recently in effect, giving effect to any subsequent assignments. The
      initial Applicable Percentage of each Lender is set forth opposite the name
      of
      such Lender on Schedule 2.01
      or in
      the Assignment and Assumption pursuant to which such Lender becomes a party
      hereto, as applicable.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Applicable
      Rate”
means
      the following percentages per annum, based upon the Leverage Ratio as set forth
      in the most recent Compliance Certificate received by the Administrative Agent
      pursuant to Section 6.02(a):

     

    
      	
              Pricing

              Level

            	 	
              Leverage
                Ratio

            	 	
              Commitment
                Fee

            	 	
              Applicable
                Margin for Eurodollar Rate Loans and Letters of Credit

            	 	
              Applicable
                Margin for Base Rate Loans

            
	
              1

            	 	
              <
                0.50 to 1.00

            	 	
              0.150%

            	 	
              0.750%

            	 	
              0.000%

            
	
              2

            	 	
              <
                1.50 to 1.00 but ≥ 0.50 to 1.00

            	 	
              0.200%

            	 	
              1.000%

            	 	
              0.000%

            
	
              3

            	 	
              <
                2.50 to 1.00 but ≥ 1.50 to 1.00

            	 	
              0.250%

            	 	
              1.250%

            	 	
              0.250%

            
	
              4

            	 	
              <
                3.50 to 1.00 but ≥ 2.50 to 1.00

            	 	
              0.350%

            	 	
              1.625%

            	 	
              0.625%

            
	
              5

            	 	
              ≥
                3.50 to 1.00

            	 	
              0.400%

            	 	
              2.000%

            	 	
              1.000%

            

    

     

    Any
      increase or decrease in the Applicable Rate resulting from a change in the
      Leverage Ratio shall become effective as of the first Business Day immediately
      following the date a Compliance Certificate is delivered pursuant to
Section 6.02(a);
      provided,
      however,
      that if
      a Compliance Certificate is not delivered when due in accordance with such
      Section, then Pricing Level 5 shall apply as of the first Business Day
      after the date on which such Compliance Certificate was required to have been
      delivered. The Applicable Rate in effect from the Closing Date through and
      including the date the Compliance Certificate is delivered pursuant to
Section 6.02(b)
      for the
      fiscal quarter ending August 31, 2007 shall be determined based upon
      Pricing Level 3.

     

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

     

    “Arranger”
means
      Banc of America Securities LLC,
      in its capacity as sole lead arranger and sole book manager.

     

    “Assignee
      Group”
means
      two or more Eligible Assignees that are Affiliates of one another or two or
      more
      Approved Funds managed by the same investment advisor.

     

    “Assignment
      and Assumption”
means
      an assignment and assumption entered into by a Lender and an Eligible Assignee
      (with the consent of any party whose consent is required by Section 10.06(b)),
      and
      accepted by the Administrative Agent, in substantially the form of Exhibit A
      or any
      other form approved by the Administrative Agent.

     

    “Audited
      Financial Statements”
means
      the audited consolidated balance sheet of the Borrower and its Subsidiaries
      for
      the fiscal year ended May 31, 2007, and the related consolidated statements
      of income or operations, shareholders’ equity and cash flows for such fiscal
      year of the Borrower and its Subsidiaries, including the notes
      thereto.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    “Auto-Extension
      Letter of Credit”
has
      the
      meaning specified in Section 2.03
      (b)(iii).

     

    “Availability”
means,
      as of any date of determination, the remainder of (a) the Aggregate
      Commitments as at such date minus (b) the Total Outstandings as at such
      date.

     

    “Availability
      Period”
means
      the period from and including the Closing Date to the earliest of (a) the
      Maturity Date, (b) the date of termination of the Aggregate Commitments
      pursuant to Section 2.06,
      and
      (c) the date of termination of the commitment of each Lender to make
      Revolving Loans and of the obligation of the L/C Issuer to make L/C Credit
      Extensions pursuant to Section 8.02.

     

    “Bank
      of America”
means
      Bank of America, N.A. and its successors.

     

    “Base
      Rate” means
      for
      any day a fluctuating rate per annum equal to the higher of (a) the Federal
      Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect for such
      day as publicly announced from time to time by Bank of America as its “prime
      rate.” The “prime rate” is a rate set by Bank of America based upon various
      factors including Bank of America’s costs and desired return, general economic
      conditions and other factors, and is used as a reference point for pricing
      some
      loans, which may be priced at, above, or below such announced rate. Any change
      in such rate announced by Bank of America shall take effect at the opening
      of
      business on the day specified in the public announcement of such
      change.

     

    “Base
      Rate Loan”
means
      a
      Loan that bears interest based on the Base Rate.

     

    “Borrower”
has
      the
      meaning specified in the introductory paragraph hereto.

     

    “Borrower
      Materials”
has
      the
      meaning specified in Section 6.02.

     

    “Borrowing”
means
      a
      Revolving Borrowing or a Swing Line Borrowing, as the context may
      require.

     

    “Business
      Day”
means
      any day other than a Saturday, Sunday or other day on which commercial banks
      are
      authorized to close under the Laws of, or are in fact closed in, the state
      where
      the Administrative Agent’s Office is located and, if such day relates to any
      Eurodollar Rate Loan, means any such day on which dealings in Dollar deposits
      are conducted by and between banks in the London interbank eurodollar
      market.

     

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

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “Cash
      Collateralize”
has
      the
      meaning specified in Section 2.03(g).

     

    “Cash
      Equivalents”
means:
      (a) United States dollars; (b) securities issued or directly and fully
      guaranteed or insured by the United States government or any agency or
      instrumentality thereof (provided
      that the
      full faith and credit of the United States is pledged in support thereof)
      maturing, unless such securities are deposited to defease any Debt, not more
      than twelve months from the date of acquisition; (c) certificates of
      deposit and eurodollar time deposits with maturities of twelve months or less
      from the date of acquisition, bankers’ acceptances with maturities not exceeding
      twelve months and overnight bank deposits, in each case, with any domestic
      commercial bank having capital and surplus in excess of $500,000,000 and a
      rating at the time of acquisition thereof of P-1 or better from Moody’s or A-1
      or better from S&P; (d) repurchase obligations with a term of not more
      than seven days for underlying securities of the types described in
      clauses (b) and (c) above entered into with any financial institution
      meeting the qualifications specified in clause (c) above;
      (e) commercial paper having the highest rating obtainable from Moody’s or
      S&P and in each case maturing within six months after the date of
      acquisition; (f) auction rate securities rated with the highest short-term
      ratings by Moody’s and S&P, and maturing within 365 days of acquisition;
      (g) securities issued and fully guaranteed by any state, commonwealth or
      territory of the United States of America, or by any political subdivision
      or
      taxing authority thereof, rated at least “A” by Moody’s or S&P and having
      maturities of not more than twelve months from the date of acquisition; and
      (h) money market funds at least 95% of the assets of which constitute Cash
      Equivalents of the kinds described in clauses (a) through (g) of this
      definition.

     

    “Cash
      Management Obligations”
means,
      with respect to any Lender, any obligations owed to such Lender by the Borrower
      or any of its Subsidiaries which arise as a direct result of the deposit,
      collection and other cash management, treasury or deposit services provided
      by
      such Lender to the Borrower or any such Subsidiary, including without limitation
      all of the obligations of the Borrower or any of its Subsidiaries to such Lender
      for overdrafts, for returned checks and other returned items and for credit
      extended under, or as a result of, cash management, treasury and deposit
      agreements.

     

    “Change
      in Law”
means
      the occurrence, after the date of this Agreement, of any of the following:
      (a) the adoption or taking effect of any Law, (b) any change in any
      Law, or in the administration, interpretation or application thereof by any
      Governmental Authority or (c) the making or issuance of any request,
      guideline or directive (whether or not having the force of Law) by any
      Governmental Authority.

     

    “Change
      of Control”
means
      (a) the direct or indirect sale, transfer, conveyance or other disposition
      (other than by way of merger or consolidation), in one or a series of related
      transactions, of all or substantially all of the properties or assets of the
      Borrower and its Subsidiaries, taken as a whole, to any “person” or “group” (as
      such terms are used for purposes of Sections 13(d) and 14(d) of the
      Securities Exchange Act, whether or not applicable), (b) any “person” or
“group” (as such terms are used for purposes of Sections 13(d) and 14(d) of
      the Securities Exchange Act, whether or not applicable) is or becomes the
“beneficial owner”, directly or indirectly, of more than 35% of the total voting
      power in the aggregate of all classes of Equity Interests of the Borrower then
      outstanding normally entitled to vote in elections of directors, (c) during
      any period of 24 consecutive months after the Closing Date, individuals who
      at
      the beginning of such 24-month period constituted the board of directors of
      the
      Borrower 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        
(together
        with any new directors whose election by such board of directors or whose
        nomination for election by the shareholders of the Borrower was approved
        by a
        vote of a majority of the directors then still in office who were either
        directors at the beginning of such period or whose election or nomination
        for
        election was previously so approved) cease for any reason to constitute a
        majority of the board of directors of the Borrower then in office, or
        (d) any “Change of Control” as defined in the Senior Notes shall occur in
        respect thereof. 

    

     

    “Closing
      Date”
means
      the date of this Agreement, which the parties hereto acknowledge is the date
      that all the conditions precedent in Section 4.01
      are
      satisfied or waived in accordance with Section 10.01.

     

    “Co-Documentation
      Agents”
means
      Wells Fargo Bank, National Association, Comerica Bank, and Wachovia Bank,
      National Association, in their capacity as co-documentation agents under any
      of
      the Loan Documents, or any successors thereto.

     

    “Code”
means
      the Internal Revenue Code of 1986.

     

    “Commitment”
means,
      as to each Lender, its obligation to (a) make Loans to the Borrower
      pursuant to Section 2.01,
      (b) purchase participations in L/C Obligations, and (c) purchase
      participations in Swing Line Loans, in an aggregate principal amount at any
      one
      time outstanding not to exceed the amount set forth opposite such
      Lender’s
      name on
Schedule 2.01,
      or in
      the Assignment and Assumption pursuant to which such Lender becomes a party
      hereto, as applicable, as such amount may be adjusted from time to time in
      accordance with this Agreement.

     

    “Commitment
      Fee”
has
      the
      meaning specified in Section 2.09(a).

     

    “Compliance
      Certificate”
means
      a
      certificate substantially in the form of Exhibit B.

     

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

     

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

     

    “Credit
      Extension”
means
      each of the following: (a) a Borrowing, (b) an L/C Credit Extension,
      and (c) a Swing Line Borrowing.

     

    “Debt”
means,
      with respect to any Person, without duplication, (a) debt of such Person
      for borrowed money, (b) all debt of such Person evidenced by bonds, notes,
      debentures or similar instruments or bankers’ acceptances or letters of credit
      (or reimbursement obligations in respect thereof); (c) the balance deferred
      and unpaid by such Person of the purchase price of any property which purchase
      price is 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        
due
        more
        than six months after the date of placing such property in service or taking
        delivery and title thereto, except any such balance that constitutes an accrued
        expense or trade payable, (d) all obligations of others secured by any Lien
        (other than Liens referred to in clauses (b), (c), (d), (e), (g) or (i) of
        the definition of Permitted Liens) on any property or asset owned by such
        Person, whether or not the obligation secured thereby shall have been assumed,
        (e) to the extent not otherwise included, all Capitalized Lease Obligations
        of such Person, all obligations of such Person with respect to leases
        constituting part of a sale and leaseback arrangement, all Guaranties by
        such
        Person, all obligations of such Person under Swap Contracts, (f) any
“withdrawal liability” of such Person, as such term is defined under part I
        of Subtitle E of Title IV of ERISA, (g) all Synthetic Lease
        Obligations of such Person, and (h) all preferred stock issued by such
        Person and required by the terms thereof to be redeemed, or for which mandatory
        sinking fund payments are due, by a fixed date prior to one year after the
        Maturity Date. 

    

     

    “Debtor
      Relief Laws”
means
      the Bankruptcy Code of the United States, and all other liquidation,
      conservatorship, bankruptcy, assignment for the benefit of creditors,
      moratorium, rearrangement, receivership, insolvency, reorganization, or similar
      debtor relief Laws of the United States or other applicable jurisdictions from
      time to time in effect and affecting the rights of creditors
      generally.

     

    “Default”
means
      any event or condition that constitutes an Event of Default or that, with the
      giving of any notice, the passage of time, or both, would be an Event of
      Default.

     

    “Default
      Rate”
means
      (a) when used with respect to Obligations other than Letter of Credit Fees,
      an interest rate equal to (i) the Base Rate plus
      (ii) the Applicable Rate, if any, applicable to Base Rate Loans
plus
      (iii) 2% per annum; provided,
      however,
      that
      with respect to a Eurodollar Rate Loan, the Default Rate shall be an interest
      rate equal to the interest rate (including any Applicable Rate) otherwise
      applicable to such Loan plus 2% per annum, and (b) when used with respect
      to Letter of Credit Fees, a rate equal to the Applicable Rate plus 2% per
      annum.

     

    “Defaulting
      Lender”
means
      any Lender that (a) has failed to fund any portion of the Loans,
      participations in L/C Obligations or participations in Swing Line Loans required
      to be funded by it hereunder within one Business Day of the date required to
      be
      funded by it hereunder unless such failure has been cured, (b) has
      otherwise failed to pay over to the Administrative Agent or any other Lender
      any
      other amount required to be paid by it hereunder within one Business Day of
      the
      date when due, unless the subject of a good faith dispute or unless such failure
      has been cured, or (c) has been deemed insolvent or become the subject of a
      bankruptcy or insolvency proceeding.

     

    “Depreciation”
means
      depreciation and depletion expense as determined in accordance with
      GAAP.

     

    “Disposition”
or
      “Dispose”
means
      the sale, transfer, license, lease or other disposition (including any sale
      and
      leaseback transaction) of any property by any Person, including any sale,
      assignment, transfer or other disposal, with or without recourse, of any notes
      or accounts receivable or any rights and claims associated
      therewith.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    “Dividend”
means,
      as to any Person, any declaration or payment of any dividend (other than a
      stock
      dividend) on, or the making of any distribution to any holder of, any shares
      of
      capital stock (or other equity or beneficial interest) of such Person (other
      than salaries, bonuses and loans to employees made or paid in the ordinary
      course of business).

     

    “Dollar”
and
      “$”
mean
      lawful money of the United States.

     

    “Domestic
      Subsidiary”
means
      any Subsidiary that is organized under the laws of any political subdivision
      of
      the United States.

     

    “EBITDA”
means,
      for any period, determined in accordance with GAAP on a consolidated basis
      for
      the Borrower and its Subsidiaries, the sum of (a) Adjusted Net Earnings
      From Operations for such period, plus (b) to the extent deducted in the
      determination of Adjusted Net Earnings from Operations for such period,
      (i) Interest Expense, plus (ii) federal, state, local and foreign
      income taxes, plus (iii) Depreciation, amortization and other non-recurring
      non-cash charges (excluding any non-cash charges to the extent that it
      represents an accrual of or reserve for cash payments in any future period),
      plus (iv) non-cash charges in respect of stock based compensation expenses
      (excluding any such non-cash charges to the extent that it represents an accrual
      of or reserve for cash payments in any future period), minus (c) to the
      extent included in the determination of Adjusted Net Earnings from Operations
      for such period, non-cash credits. 

     

    “Eligible
      Assignee”
means
      (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved Fund;
      and (d) any other Person (other than a natural person) approved by
      (i) the Administrative Agent, the L/C Issuer and the Swing Line Lender, and
      (ii) unless an Event of Default has occurred and is continuing, the
      Borrower (each such approval not to be unreasonably withheld or delayed);
provided
      that
      notwithstanding the foregoing, “Eligible Assignee” shall not include the
      Borrower or any of the Borrower’s Affiliates or Subsidiaries.

     

    “Environmental
      Laws”
means
      any and all Federal, state, local, and foreign statutes, laws, regulations,
      ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
      franchises, licenses, agreements or governmental restrictions relating to
      pollution and the protection of the environment or the release of any materials
      into the environment, including those related to hazardous substances or wastes,
      air emissions and discharges to waste or public systems.

     

    “Environmental
      Liability”
means
      any liability, contingent or otherwise (including any liability for damages,
      costs of environmental remediation, fines, penalties or indemnities), of the
      Borrower, any other Loan Party or any of their respective Subsidiaries directly
      or indirectly resulting from or based upon (a) violation of any
      Environmental Law, (b) the generation, use, handling, transportation,
      storage, treatment or disposal of any Hazardous Materials, (c) exposure to
      any Hazardous Materials, (d) the release or threatened release of any
      Hazardous Materials into the environment or (e) any contract, agreement or
      other consensual arrangement pursuant to which liability is assumed or imposed
      with respect to any of the foregoing.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    “Environmental
      Permit”
means
      any permit, license, order, approval or other authorization under Environmental
      Law material to business of the Borrower or any Subsidiary.

     

    “Equity
      Interests”
means,
      with respect to any Person, all of the shares of capital stock of (or other
      ownership or profit interests in) such Person, all of the warrants, options
      or
      other rights for the purchase or acquisition from such Person of shares of
      capital stock of (or other ownership or profit interests in) such Person, all
      of
      the securities convertible into or exchangeable for shares of capital stock
      of
      (or other ownership or profit interests in) such Person or warrants, rights
      or
      options for the purchase or acquisition from such Person of such shares (or
      such
      other interests), and all of the other ownership or profit interests in such
      Person (including partnership, member or trust interests therein), whether
      voting or nonvoting, and whether or not such shares, warrants, options, rights
      or other interests are outstanding on any date of determination.

     

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

     

    “ERISA
      Affiliate”
means
      any trade or business (whether or not incorporated) under common control with
      the Borrower within the meaning of Section 414(b) or (c) of the Code (and
      Sections 414(m) and (o) of the Code for purposes of provisions relating to
      Section 412 of the Code).

     

    “ERISA
      Event”
means
      (a) a Reportable Event with respect to a Pension Plan; (b) a
      withdrawal by the Borrower or any ERISA Affiliate from a Pension Plan subject
      to
      Section 4063 of ERISA during a plan year in which it was a substantial
      employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of
      operations that is treated as such a withdrawal under Section 4062(e) of
      ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA
      Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan
      is
      in reorganization; (d) the filing of a notice of intent to terminate a
      Pension Plan, the treatment of a Pension Plan amendment as a termination under
      Sections 4041 or 4041A of ERISA, or the commencement of proceedings by the
      PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or
      condition which constitutes grounds under Section 4042 of ERISA for the
      termination of, or the appointment of a trustee to administer, any Pension
      Plan
      or Multiemployer Plan; or (f) the imposition of any liability under
      Title IV of ERISA, other than for PBGC premiums due but not delinquent
      under Section 4007 of ERISA, upon the Borrower or any ERISA
      Affiliate.

     

    “Eurodollar
      Rate”
means,
      for any Interest Period with respect to a Eurodollar Rate Loan, the rate per
      annum equal to the British Bankers Association LIBOR Rate (“BBA
      LIBOR”),
      as
      published by Reuters (or other commercially available source providing
      quotations of BBA LIBOR as designated by the Administrative Agent from time
      to
      time) at approximately 11:00 a.m., London time, two Business Days prior to
      the commencement of such Interest Period, for Dollar deposits (for delivery
      on
      the first day of such Interest Period) with a term equivalent to such Interest
      Period. If such rate is not available at such time for any reason, then the
      “Eurodollar Rate” for such Interest Period shall be the rate per annum
      determined by the Administrative Agent to be the rate at which deposits in
      Dollars for delivery on the first day of such Interest Period in same day funds
      in the approximate amount of the Eurodollar Rate Loan being made, continued
      or
      converted by Bank of America and with a term equivalent to such Interest Period
      would be offered by Bank of America’s London Branch to major banks in the London
      interbank eurodollar market at their request at approximately 11:00 a.m.
      (London time) two Business Days prior to the commencement of such Interest
      Period.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    “Eurodollar
      Rate Loan”
means
      a
      Loan that bears interest at a rate based on the Eurodollar Rate.

     

    “Event
      of Default”
has
      the
      meaning specified in Section 8.01.

     

    “Excluded
      Taxes”
means,
      with respect to the Administrative Agent, any Lender, the L/C Issuer or any
      other recipient of any payment to be made by or on account of any obligation
      of
      the Borrower hereunder, (a) taxes imposed on or measured by its overall net
      income (however denominated), and franchise taxes imposed on it (in lieu of
      net
      income taxes), by the jurisdiction (or any political subdivision thereof) under
      the laws of which such recipient is organized or in which its principal office
      is located or, in the case of any Lender, in which its applicable Lending Office
      is located, (b) any branch profits taxes imposed by the United States or
      any similar tax imposed by any other jurisdiction in which the Borrower is
      located and (c) in the case of a Foreign Lender (other than an assignee
      pursuant to a request by the Borrower under Section 10.13),
      any
      withholding tax that is imposed on amounts payable to such Foreign Lender at
      the
      time such Foreign Lender becomes a party hereto (or designates a new Lending
      Office) or is attributable to such Foreign Lender’s failure or inability (other
      than as a result of a Change in Law) to provide the documentation described
      in
Section 3.01(e),
      except
      to the extent that such Foreign Lender (or its assignor, if any) was entitled,
      at the time of designation of a new Lending Office (or assignment), to receive
      additional amounts from the Borrower with respect to such withholding tax
      pursuant to Section 3.01(a).

     

    “Existing
      Credit Agreement”
has
      the
      meaning specified in the second introductory paragraph hereto.

     

    “Existing
      Letters of Credit”
means
      the letters of credit set forth on Schedule 1.01.

     

    “Federal
      Funds Rate” means,
      for any day, the rate per annum 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
      (a) 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
      as so
      published on the next succeeding Business Day, and (b) if no such rate is
      so published on such next succeeding Business Day, the Federal Funds Rate for
      such day shall be the average rate (rounded upward, if necessary, to a whole
      multiple of 1/100 of 1%) charged to Bank of America on such day on such
      transactions as determined by the Administrative Agent.

     

    “Fee
      Letter”
means
      the letter agreement, dated July 5, 2007 among the Borrower, the
      Administrative Agent and the Arranger.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    “Foreign
      Lender”
means
      any Lender that is organized under the laws of a jurisdiction other than that
      in
      which the Borrower is resident for tax purposes. For purposes of this
      definition, the United States, each State thereof and the District of Columbia
      shall be deemed to constitute a single jurisdiction.

     

    “Foreign
      Subsidiary”
means
      each Subsidiary of the Borrower which is organized under the laws of a
      jurisdiction other than the United States of America or any state or
      commonwealth thereof.

     

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

     

    “Fund”
means
      any Person (other than a natural person) 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 activities.

     

    “GAAP”
means
      generally accepted accounting principles in the United States set forth 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 such other principles as may be
      approved by a significant segment of the accounting profession in the United
      States, that are applicable to the circumstances as of the date of
      determination, consistently applied.

     

    “Governmental
      Authority”
means
      the government of the United States or any other nation, or of any political
      subdivision thereof, whether state or local, and any agency, authority,
      instrumentality, regulatory body, court, central bank or other entity exercising
      executive, legislative, judicial, taxing, regulatory or administrative powers
      or
      functions of or pertaining to government (including any supra-national bodies
      such as the European Union or the European Central Bank).

     

    “Granting
      Lender”
has
      the
      meaning specified in Section 10.06(h).

     

    “Guarantee”
means,
      as to any Person, any (a) any obligation, contingent or otherwise, of such
      Person guaranteeing or having the economic effect of guaranteeing any Debt
      or
      other obligation payable or performable by another Person (the “primary
      obligor”) in any manner, whether directly or indirectly, and including any
      obligation of such Person, direct or indirect, (i) to purchase or pay (or
      advance or supply funds for the purchase or payment of) such Debt or other
      obligation, (ii) to purchase or lease property, securities or services for
      the purpose of assuring the obligee in respect of such Debt or other obligation
      of the payment or performance of such Debt or other obligation, (iii) to
      maintain working capital, equity capital or any other financial statement
      condition or liquidity or level of income or cash flow of the primary obligor
      so
      as to enable the primary obligor to pay such Debt or other obligation, or
      (iv) entered into for the purpose of assuring in any other manner the
      obligee in respect of such Debt or other obligation of the payment or
      performance thereof or to protect such obligee against loss in respect thereof
      (in whole or in part), or (b) any Lien on any assets of such Person
      securing any Debt or other 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        
obligation
        of any other Person, whether or not such Debt or other obligation is assumed
        by
        such Person (or any right, contingent or otherwise, of any holder of such
        Debt
        to obtain any such Lien). The amount of any Guarantee shall be deemed to
        be an
        amount equal to the stated or determinable amount of the related primary
        obligation, or portion thereof, in respect of which such Guarantee is made
        or,
        if not stated or determinable, the maximum reasonably anticipated liability
        in
        respect thereof as determined by the guaranteeing Person in good faith. The
        term
“Guarantee” as a verb has a corresponding meaning.

    

     

    “Guarantied
      Obligations”
means,
      collectively, (a) the Obligations, (b) all Swap Obligations owed to
      any Guarantied Party, (c) all Cash Management Obligations, (d) any and
      all out-of-pocket expenses (including, without limitation, expenses and
      reasonable counsel fees and expenses of any Guarantied Party) incurred by any
      Guarantied Party in enforcing its rights under this Agreement, any other Loan
      Document, or any Swap Contract or in respect of any Cash Management Obligations,
      and (e) all present and future amounts in respect of the foregoing that
      would become due but for the operation of any provision of Debtor Relief Laws,
      and all present and future accrued and unpaid interest in respect of the
      foregoing, including, without limitation, post-petition interest if any Loan
      Party voluntarily or involuntarily becomes subject to any Debtor Relief
      Laws.

     

    “Guarantied
      Parties”
means,
      collectively, (a) the Administrative Agent, (b) the Lenders,
      (c) any Lender or any Affiliate of any Lender that is a party to any Swap
      Contract with the Borrower or any Subsidiary of the Borrower, (d) any
      Lender or any Affiliate of any Lender that is owed any Cash Management
      Obligation (provided that at the time such Cash Management Obligations arose
      such Lender is a party to the Credit Agreement), and (e) the beneficiaries
      of each indemnification obligation undertaken by any Loan Party under any Loan
      Document; provided that any Person that ceases to be a Lender (and any Affiliate
      of such Person) shall be a Guarantied Party only with respect to transactions
      under Swap Contracts that were entered into during or prior to the time that
      such Person was a Lender.

     

    “Guarantors”
      means,
      collectively,
      each Material Domestic Subsidiary.

     

    “Guaranty”
means
      the Guaranty made by the Guarantors, substantially in the form of Exhibit C,
      and
      shall include any Guaranty Supplement executed thereto and defined
      therein.

     

    “Hazardous
      Materials”
means
      all explosive or radioactive substances or wastes and all hazardous or toxic
      substances, wastes or other pollutants, including petroleum or petroleum
      distillates, asbestos or asbestos-containing materials, polychlorinated
      biphenyls, radon gas, infectious or medical wastes and all other substances
      or
      wastes of any nature regulated pursuant to any Environmental Law.

     

    “Highest
      Lawful Rate”
means
      at the particular time in question the maximum rate of interest which, under
      Applicable Law, any Lender is then permitted to charge on the Obligations.
      If
      the maximum rate of interest which, under Applicable Law, any Lender is
      permitted to charge on the Obligations shall change after the date hereof,
      the
      Highest Lawful Rate shall be automatically increased or decreased, as the case
      may be, from time to time as of the effective time of each change in the Highest
      Lawful Rate without notice to the Borrower. For purposes of determining the
      Highest Lawful Rate under Applicable Law, on each day, if any, that
      Chapter 303 of the Texas Finance Code establishes the Highest Lawful Rate,
      such rate shall be the weekly ceiling computed in accordance with
      Section 303.003 for that day.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    “Honor
      Date”
has
      the
      meaning specified in Section 2.03(c)(i).

     

    “Increase
      Effective Date”
has
      the
      meaning specified in Section 2.14(d).

     

    “Indemnified
      Taxes”
means
      Taxes other than Excluded Taxes.

     

    “Indemnitees”
has
      the
      meaning specified in Section 10.04(b).

     

    “Information”
has
      the
      meaning specified in Section 10.07.

     

    “Interest
      Coverage Ratio”
means,
      as of any date of determination, for the Borrower and its Subsidiaries on a
      consolidated basis determined in accordance with GAAP, the ratio of
      (a) EBITDA to (b) Interest Expense, in each case for the period of the
      most recent four consecutive fiscal quarters ending on or before such date
      of
      determination.

     

    “Interest
      Expense”
means,
      for any period of calculation, calculated for the Borrower and its Subsidiaries
      on a consolidated basis determined in accordance with GAAP, interest expense
      (including interest expense pursuant to Capitalized Lease Obligations) for
      such
      period. 

     

    “Interest
      Payment Date”
means,
      (a) as to any Loan other than a Base Rate Loan, the last day of each
      Interest Period applicable to such Loan and the Maturity Date; provided,
      however,
      that if
      any Interest Period for a Eurodollar Rate Loan exceeds three months, the
      respective dates that fall every three months after the beginning of such
      Interest Period shall also be Interest Payment Dates; and (b) as to any
      Base Rate Loan (including a Swing Line Loan), the last Business Day of each
      March, June, September and December and the Maturity Date.

     

    “Interest
      Period”
means,
      as to each Eurodollar Rate Loan, the period commencing on the date such
      Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar
      Rate Loan and ending on the date one, two, three or six months thereafter,
      as
      selected by the Borrower in its Revolving Loan Notice; provided
      that:

     

    (i) any
      Interest Period that would otherwise end on a day that is not a Business Day
      shall be extended to the next succeeding Business Day unless such Business
      Day
      falls in another calendar month, in which case such Interest Period shall end
      on
      the next preceding Business Day;

     

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

     

    (iii) no
      Interest Period shall extend beyond the Maturity Date.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    “Internal
      Control Event”
means
      a
      material weakness in, or material. fraud that involves management or other
      employees who have a significant role in, the Borrower’s internal controls over
      financial reporting, in each case as described in the Securities
      Laws.

     

    “Investment”
means,
      as to any Person, any direct or indirect acquisition or investment by such
      Person of or in another Person, whether by means of (a) the purchase or
      other acquisition of capital stock or other securities of another Person,
      (b) a loan, advance or capital contribution to, Guarantee or assumption of
      debt of, or purchase or other acquisition of any other debt or Equity Interest
      in, another Person, including any partnership or joint venture interest in
      such
      other Person and any arrangement pursuant to which the investor Guarantees
      Debt
      of such other Person, or (c) the purchase or other acquisition (in one
      transaction or a series of transactions) of assets of another Person that
      constitute a business unit. For purposes of covenant compliance, the amount
      of
      any Investment shall be the amount actually invested, without adjustment for
      subsequent increases or decreases in the value of such Investment.

     

    “IP
      Rights”
has
      the
      meaning specified in Section 5.17.

     

    “IRS”
means
      the United States Internal Revenue Service.

     

    “ISP”
means,
      with respect to any Letter of Credit, the “International Standby Practices 1998”
published by the Institute of International Banking Law & Practice (or
      such later version thereof as may be in effect at the time of
      issuance).

     

    “Issuer
      Documents”
means
      with respect to any Letter of Credit, the Letter of Credit Application, and
      any
      other document, agreement and instrument entered into by the L/C Issuer and
      the
      Borrower or in favor of the L/C Issuer and relating to any such Letter of
      Credit.

     

    “Laws”
means,
      collectively, all international, foreign, Federal, state and local statutes,
      treaties, rules, guidelines, regulations, ordinances, codes and administrative
      or judicial precedents or authorities, including the interpretation or
      administration thereof by any Governmental Authority charged with the
      enforcement, interpretation or administration thereof, and all applicable
      administrative orders, directed duties, requests, licenses, authorizations
      and
      permits of, and agreements with, any Governmental Authority, in each case
      whether or not having the force of law.

     

    “L/C
      Advance”
means,
      with respect to each Lender, such Lender’s funding of its participation in any
      L/C Borrowing in accordance with its Applicable Percentage.

     

    “L/C
      Borrowing”
means
      an extension of credit resulting from a drawing under any Letter of Credit
      which
      has not been reimbursed on the date when made or refinanced as a Revolving
      Borrowing.

     

    “L/C
      Credit Extension”
means,
      with respect to any Letter of Credit, the issuance thereof or extension of
      the
      expiry date thereof, or the increase of the amount thereof.

     

    “L/C
      Issuer”
means
      Bank of America in its capacity as issuer of Letters of Credit hereunder, or
      any
      successor issuer of Letters of Credit hereunder.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    “L/C
      Obligations”
means,
      as at any date of determination, the aggregate amount available to be drawn
      under all outstanding Letters of Credit plus
      the
      aggregate of all Unreimbursed Amounts, including all L/C Borrowings. For
      purposes of computing the amount available to be drawn under any Letter of
      Credit, the amount of such Letter of Credit shall be determined in accordance
      with Section 1.06.
      For all
      purposes of this Agreement, if on any date of determination a Letter of Credit
      has expired by its terms but any amount may still be drawn thereunder by reason
      of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be
      deemed to be “outstanding” in the amount so remaining available to be
      drawn.

     

    “Lender”
has
      the
      meaning specified in the introductory paragraph hereto and, as the context
      requires, includes the Swing Line Lender.

     

    “Lending
      Office”
means,
      as to any Lender, the office or offices of such Lender described as such in
      such
      Lender’s Administrative Questionnaire, or such other office or offices as a
      Lender may from time to time notify the Borrower and the Administrative
      Agent.

     

    “Letter
      of Credit”
means
      any letter of credit issued hereunder, and shall include the Existing Letters
      of
      Credit. A Letter of Credit may be a commercial letter of credit or a standby
      letter of credit.

     

    “Letter
      of Credit Application”
means
      an application and agreement for the issuance or amendment of a Letter of Credit
      in the form from time to time in use by the L/C Issuer.

     

    “Letter
      of Credit Expiration Date”
means
      the day that is seven days prior to the Maturity Date then in effect (or, if
      such day is not a Business Day, the next preceding Business Day).

     

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

     

    “Letter
      of Credit Sublimit”
means
      an amount equal to $50,000,000. The Letter of Credit Sublimit is part of, and
      not in addition to, the Aggregate Commitments.

     

    “Leverage
      Ratio”
means,
      as of any date of determination, for the Borrower and its Subsidiaries
      consolidated in accordance with GAAP, the ratio of (a) Total Debt as of
      such date of determination to (b) EBITDA for the most recent four
      consecutive fiscal quarters ending on or before such date of
      determination.

     

    “Lien”
means
      any mortgage, pledge, hypothecation, assignment, deposit arrangement,
      encumbrance, lien (statutory or other), charge, or preference, priority or
      other
      security interest or preferential arrangement in the nature of a security
      interest of any kind or nature whatsoever (including any conditional sale or
      other title retention agreement, any easement, right of way or other encumbrance
      on title to real property, and any financing lease having substantially the
      same
      economic effect as any of the foregoing).

     

    “Limited
      Amount Period”
means,
      after termination of the initial Unlimited Amount Period, from the first day
      of
      any fiscal quarter, the shorter of (a) a period of four fiscal quarters
      commencing on such day and (b) the period of time from such date to the
      commencement of an Unlimited Amount Period; provided,
      however,
      no
      consecutive Limited Amount Period shall commence until the first day of the
      fiscal quarter which is the fifth fiscal quarter after the commencement of
      the
      preceding Limited Amount Period.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    “Limited
      Restricted Payment Period”
means,
      after termination of the initial Unlimited Restricted Payment Period, from
      the
      first day of any fiscal quarter, the shorter of (a) a period of four fiscal
      quarters commencing on such day and (b) the period of time from such date
      to the commencement of an Unlimited Restricted Payment Period; provided,
      however,
      no
      consecutive Limited Restricted Payment Period shall commence until the first
      day
      of the fiscal quarter which is the fifth fiscal quarter after the commencement
      of the preceding Limited Restricted Payment Period.

     

    “Loan”
means
      an extension of credit by a Lender to the Borrower under Article II
      in the
      form of a Revolving Loan or a Swing Line Loan.

     

    “Loan
      Documents”
means
      this Agreement, each Note, each Issuer Document, the Fee Letter, the
      Guaranty, and
      any
      other agreement or document executed, delivered or performable by any Loan
      Party
      in connection herewith or as security for the Obligations.

     

    “Loan
      Parties”
means,
      collectively, the Borrower and each Guarantor.

     

    “Material
      Adverse Effect”
means
      (a) a material adverse change in, or a material adverse effect upon, the
      operations, business, properties, liabilities (actual or contingent) or
      condition (financial or otherwise) of the Borrower or the Borrower and its
      Subsidiaries taken as a whole; (b) a material impairment of the ability of
      the Loan Parties, taken as a whole, to perform their obligations under the
      Loan
      Documents; or (c) a material adverse effect upon the legality, validity,
      binding effect or enforceability against any Loan Party of any Loan Document
      to
      which it is a party.

     

    “Material
      Domestic Subsidiary”
means
      any Domestic Subsidiary that has assets in excess of $10,000.

     

    “Maturity
      Date”
means
      (a) August 15, 2012 or (b) such earlier date as (i) the
      Obligations become due and payable pursuant to this Agreement (whether by
      acceleration, prepayment in full, scheduled reduction or otherwise) or
      (ii) there shall exist an Event of Default under Section 8.01(f)
      of this
      Agreement. 

     

    “Multiemployer
      Plan”
means
      any employee benefit plan of the type described in Section 4001(a)(3) of
      ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to
      make contributions, or during the preceding five plan years, has made or been
      obligated to make contributions.

     

    “Net
      Cash Proceeds”
means:
      

     

    (a) with
      respect to the sale of any asset by the Borrower or any Subsidiary, the excess,
      if any, of (i) the sum of cash and cash equivalents received in connection
      with such sale (including any cash received by way of deferred payment pursuant
      to, or by monetization of, a note receivable or otherwise, but only as and
      when
      so received) over (ii) the sum of (A) the principal amount of any

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

      Debt
        that
        is secured by such asset and that is required to be repaid in connection
        with
        the sale thereof (other than Debt under the Loan Documents), (B) the
        out-of-pocket expenses incurred by the Borrower or any Subsidiary in connection
        with such sale and (C) income taxes reasonably estimated to be actually
        payable within two years of the date of the relevant asset sale as a result
        of
        any gain recognized in connection therewith; and

    

     

    (b) with
      respect to the sale of any Equity Interest by the Borrower, the excess of
      (i) the sum of the cash and cash equivalents received in connection with
      such sale over (ii) the underwriting discounts and commissions, and other
      out-of-pocket expenses, incurred by the Borrower in connection with such
      sale.

     

    “Non-Extension
      Notice Date”
has
      the
      meaning specified in Section 2.03(b)(iii).

     

    “Notes”
means
      collectively, the Revolving Loan Notes and the Swing Line Note.

     

    “Obligations”
means
      all advances to, and debts, liabilities, obligations, covenants and duties
      of,
      any Loan Party arising under any Loan Document or otherwise with respect to
      any
      Loan or Letter of Credit, in each case whether direct or indirect (including
      those acquired by assumption), absolute or contingent, due or to become due,
      now
      existing or hereafter arising and including interest and fees that accrue after
      the commencement by or against any Loan Party of any proceeding under any Debtor
      Relief Laws naming such Person as the debtor in such proceeding, regardless
      of
      whether such interest and fees are allowed claims in such
      proceeding.

     

    “Off-Balance
      Sheet Liabilities”
means,
      with respect to any Person as of any date of determination thereof, without
      duplication and to the extent not included as a liability on the consolidated
      balance sheet of such Person and its Subsidiaries in accordance with GAAP:
      (a) with respect to any asset securitization transaction (including any
      accounts receivable purchase facility) (i) the unrecovered investment of
      purchasers or transferees of assets so transferred, and (ii) any other
      payment, recourse, repurchase, hold harmless, indemnity or similar obligation
      of
      such Person or any of its Subsidiaries in respect of assets transferred or
      payments made in respect thereof, other than limited recourse provisions that
      are customary for transactions of such type and that neither (x) have the
      effect of limiting the loss or credit risk of such purchasers or transferees
      with respect to payment or performance by the obligors of the assets so
      transferred nor (y) impair the characterization of the transaction as a
      true sale under applicable Laws (including Debtor Relief Laws); (b) the
      monetary obligations under any financing lease or so-called “synthetic,” tax
      retention or off-balance sheet lease transaction which, upon the application
      of
      any Debtor Relief Law to such Person or any of its Subsidiaries, would be
      characterized as indebtedness; (c) the monetary obligations under any sale
      and leaseback transaction which does not create a liability on the consolidated
      balance sheet of such Person and its Subsidiaries; (d) any other monetary
      obligation arising with respect to any other transaction which upon the
      application of any Debtor Relief Law to such Person or any of its Subsidiaries,
      would be characterized as indebtedness, or (e) any transaction structured
      to provide tax deductibility as interest expense of any dividend or similar
      payment.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    “Organization
      Documents”
means,
      (a) with respect to any corporation, the certificate or articles of
      incorporation and the bylaws (or equivalent or comparable constitutive documents
      with respect to any non-U.S. jurisdiction); (b) with respect to any limited
      liability company, the certificate or articles of formation or organization
      and
      operating agreement; and (c) with respect to any partnership, joint
      venture, trust or other form of business entity, the partnership, joint venture
      or other applicable agreement of formation or organization and any agreement,
      instrument, filing or notice with respect thereto filed in connection with
      its
      formation or organization with the applicable Governmental Authority in the
      jurisdiction of its formation or organization and, if applicable, any
      certificate or articles of formation or organization of such
      entity.

     

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

     

    “Outstanding
      Amount”
means
      (i) with respect to Revolving Loans and Swing Line Loans on any date, the
      aggregate outstanding principal amount thereof after giving effect to any
      borrowings and prepayments or repayments of Revolving Loans and Swing Line
      Loans, as the case may be, occurring on such date; and (ii) with respect to
      any L/C Obligations on any date, the amount of such L/C Obligations on such
      date
      after giving effect to any L/C Credit Extension occurring on such date and
      any
      other changes in the aggregate amount of the L/C Obligations as of such date,
      including as a result of any reimbursements by the Borrower of Unreimbursed
      Amounts.

     

    “Participant”
has
      the
      meaning specified in Section 10.06(d).

     

    “PBGC”
means
      the Pension Benefit Guaranty Corporation.

     

    “Pension
      Plan”
means
      any “employee pension benefit plan” (as such term is defined in
      Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to
      Title IV of ERISA and is sponsored or maintained by the Borrower or any
      ERISA Affiliate or to which the Borrower or any ERISA Affiliate contributes
      or
      has an obligation to contribute, or in the case of a multiple employer or other
      plan described in Section 4064(a) of ERISA, has made contributions at any
      time during the immediately preceding five plan years.

     

    “Permitted
      Liens”
means,
      as applied to any Person:

     

    (a) any
      Lien
      in favor of the Administrative Agent to secure the Guarantied Obligations
      (including, without limitation, L/C Obligations and obligations in respect
      of
      Swap Contracts, to the extent included within the definition of Guarantied
      Obligations);

     

    (b) (i) Liens
      on real estate for real estate taxes not yet delinquent, (ii) Liens on
      leasehold interests created by the lessor in favor of any mortgagee of the
      leased premises, and (iii) Liens for taxes, assessments, governmental
      charges, levies or claims that are being diligently contested in good faith
      by
      appropriate proceedings and for which adequate reserves shall have been set
      aside on such Person’s books, but only so long as no foreclosure, restraint,
      sale or similar proceedings have been commenced with respect
      thereto;

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    (c) Liens
      of
      carriers, landlords, warehousemen, mechanics, laborers and materialmen and
      other
      similar Liens incurred in the ordinary course of business for sums not yet
      due
      or being contested in good faith, if such reserve or appropriate provision,
      if
      any, as shall be required by GAAP shall have been made therefore;

     

    (d) Liens
      incurred in the ordinary course of business in connection with worker’s
      compensation, unemployment insurance or similar legislation, other than Liens
      imposed by ERISA;

     

    (e) Easements,
      right-of-way, restrictions and other similar encumbrances on real property
      which
      do not materially interfere with the ordinary conduct of the business of such
      Person;

     

    (f) Liens
      created to secure Debt permitted by Section 7.03(d),
      which
      is incurred solely for the purpose of financing the acquisition or construction
      of such assets and incurred at the time of acquisition or construction, so
      long
      as each such Lien shall at all times be confined solely to the asset or assets
      so acquired or constructed (and proceeds thereof), and refinancings thereof
      so
      long as any such Lien remains solely on the asset or assets acquired or
      constructed and the amount of Debt related thereto is not
      increased.

     

    (g) Liens
      in
      respect of judgments or awards for which appeals or proceedings for review
      are
      being prosecuted and in respect of which a stay of execution upon any such
      appeal or proceeding for review shall have been secured, provided that
      (i) such Person shall have established adequate reserves for such judgments
      or awards, (ii) such judgments or awards shall be fully insured and the
      insurer shall not have denied coverage, or (iii) such judgments or awards
      shall have been bonded to the reasonable satisfaction of the Administrative
      Agent;

     

    (h) Any
      Liens
      existing on the Closing Date which are described on Schedule 7.01
      and
      which are acceptable to the Lenders, and Liens resulting from the refinancing
      of
      the related Debt, provided that the Debt secured thereby shall not be increased
      and the Liens shall not cover additional assets of the Borrower or any
      Subsidiary; 

     

    (i) Liens
      filed of record out of an abundance of caution by lessors of personal property,
      so long as each such Lien shall at all times be confined solely to the asset
      or
      assets so leased (including additions and accessions thereto and proceeds of
      insurance thereon); and

     

    (j) Liens
      that secure Debt permitted by Section 7.03(k).

     

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

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    “Plan”
means
      any “employee benefit plan” (as such term is defined in Section 3(3) of
      ERISA) established by the Borrower or, with respect to any such plan that is
      subject to Section 412 of the Code or Title IV
      of
      ERISA, any ERISA Affiliate.

     

    “Platform”
has
      the
      meaning specified in Section 6.02.

     

    “Public
      Lender”
has
      the
      meaning specified in Section 6.02.

     

    “Register”
has
      the
      meaning specified in Section 10.06(c).

     

    “Registered
      Public Accounting Firm”
has
      the
      meaning specified in the Securities Laws and shall be independent of the
      Borrower as prescribed by the Securities Laws.

     

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

     

    “Release”
has
      the
      meaning specified under any Environmental Law.

     

    “Reportable
      Event”
means
      any of the events set forth in Section 4043(c)
      of
      ERISA, other than events for which the 30 day notice period has been
      waived.

     

    “Request
      for Credit Extension”
means
      (a) with respect to a Revolving Borrowing or a conversion or continuation
      of Revolving Loans, a Revolving Loan Notice, (b) with respect to an L/C
      Credit Extension, a Letter of Credit Application, and (c) with respect to a
      Swing Line Loan, a Swing Line Loan Notice.

     

    “Required
      Lenders”
means,
      as of any date of determination, Lenders having more than 50% of the Aggregate
      Commitments or, if the commitment of each Lender to make Loans and the
      obligation of the L/C Issuer to make L/C Credit Extensions have been terminated
      pursuant to Section 8.02,
      Lenders
      holding in the aggregate more than 50% of
      the
      Total Outstandings (with the aggregate amount of each Lender’s risk
      participation and funded participation in L/C Obligations and Swing Line Loans
      being deemed “held” by such Lender for purposes of this definition);
provided
      that the
      Commitment of, and the portion of the Total Outstandings held or deemed held
      by,
      any Defaulting Lender shall be excluded for purposes of making a determination
      of Required Lenders.

     

    “Response”
has
      the
      meaning specified under any Environmental Law.

     

    “Responsible
      Officer”
means
      the chief executive officer, president, chief financial officer, chief
      accounting officer, treasurer or assistant treasurer of a Loan Party. Any
      document delivered hereunder that is signed by a Responsible Officer of a Loan
      Party shall be conclusively presumed to have been authorized by all necessary
      corporate, partnership and/or other action on the part of such Loan Party and
      such Responsible Officer shall be conclusively presumed to have acted on behalf
      of such Loan Party.

     

    “Restricted
      Debt Payments”
has
      the
      meaning specified in Section 7.15.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    “Restricted
      Payment”
means
      (i) any Dividend or other distribution (whether in cash, securities or
      other property) with respect to any capital stock or other Equity Interest
      of
      the Borrower or any Subsidiary, or (ii) any payment (whether in cash,
      securities or other property), including any sinking fund or similar deposit,
      on
      account of the purchase, redemption, retirement, acquisition, cancellation
      or
      termination of any such capital stock or other Equity Interest, or on account
      of
      any return of capital to the Borrower’s stockholders, partners or members (or
      the equivalent Person thereof).

     

    “Revolving
      Borrowing”
means
      a
      borrowing consisting of simultaneous Revolving Loans of the same Type and,
      in
      the case of Eurodollar Rate Loans, having the same Interest Period made by
      each
      of the Lenders pursuant to Section 2.01.

     

    “Revolving
      Loan”
has
      the
      meaning specified in Section 2.01.

     

    “Revolving
      Loan Note”
means
      a
      promissory note made by the Borrower in favor of a Lender evidencing Revolving
      Loans made by such Lender, substantially in the form of Exhibit E.

     

    “Revolving
      Loan Notice”
means
      a
      notice of (a) a Revolving Borrowing, (b) a conversion of Revolving
      Loans from one Type to the other, or (c) a continuation of Revolving Loans,
      pursuant to Section 2.02(a),
      which,
      if in writing, shall be substantially in the form of Exhibit F.

     

    “Sarbanes-Oxley”
means
      the Sarbanes-Oxley Act of 2002.

     

    “SEC”
means
      the Securities and Exchange Commission, or any Governmental Authority succeeding
      to any of its principal functions.

     

    “Securities
      Laws”
means
      the Securities Act of 1933, the Securities Exchange Act of 1934, Sarbanes-Oxley
      and the applicable accounting and auditing principles, rules, standards and
      practices promulgated, approved or incorporated by the SEC or the Public Company
      Accounting Oversight Board, as each of the foregoing may be amended and in
      effect on any applicable date hereunder.

     

    “Senior
      Notes”
means
      unsecured senior notes of the Borrower due 2013 or thereafter in an aggregate
      principal amount not in excess of $400,000,000 pursuant to terms, covenants
      and
      provisions satisfactory to the Administrative Agent.

     

    “Solvent”
means,
      with respect to any Person, as of any date of determination, that the fair
      value
      of the assets of such Person (at fair valuation) is, on the date of
      determination, greater than the total amount of liabilities (including
      contingent and unliquidated liabilities) of such Person as of such date, that
      the present fair saleable value of the assets of such Person will, as of such
      date, be greater than the amount that will be required to pay the probable
      liability of such Person on its debts as such debts become absolute and matured,
      and that, as of such date, such Person will be able to pay all liabilities
      of
      such Person as such liabilities mature and such Person does not have
      unreasonably small capital with which to carry on its business. In computing
      the
      amount of contingent or unliquidated liabilities at any time, such liabilities
      will be computed at the amount which, in light of all the facts and
      circumstances existing at such time, represents the amount that can reasonably
      be expected to become an actual or matured liability discounted to present
      value
      at rates believed to be reasonable by such Person acting in good
      faith.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    “SPC”
has
      the
      meaning specified in Section 10.06(h).

     

    “Subordinated
      Debt”
means
      all Debt of the Borrower or any Subsidiary which shall be subordinated, on
      terms
      satisfactory to the Required Lenders, to the Obligations.

     

    “Subsidiary”
of
      a
      Person means a corporation, partnership, joint venture, limited liability
      company or other business entity of which a majority of the shares of securities
      or other interests having ordinary voting power for the election of directors
      or
      other governing body (other than securities or interests having such power
      only
      by reason of the happening of a contingency) are at the time beneficially owned,
      or the management of which is otherwise controlled, directly, or indirectly
      through one or more intermediaries, or both, by such Person. Unless otherwise
      specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall
      refer to a Subsidiary or Subsidiaries of the Borrower.

     

    “Swap
      Contract”
means
      (a) any and all rate swap transactions, basis swaps, credit derivative
      transactions, forward rate transactions, commodity swaps, commodity options,
      forward commodity contracts, equity or equity index swaps or options, bond
      or
      bond price or bond index swaps or options or forward bond or forward bond price
      or forward bond index transactions, interest rate options, forward foreign
      exchange transactions, cap transactions, floor transactions, collar
      transactions, currency swap transactions, cross-currency rate swap transactions,
      currency options, or any other similar transactions or any combination of any
      of
      the foregoing (including any options to enter into any of the foregoing),
      whether or not any such transaction is governed by or subject to any master
      agreement, and (b) any and all transactions of any kind, and the related
      confirmations, which are subject to the terms and conditions of, or governed
      by,
      any form of master agreement published by the International Swaps and
      Derivatives Association, Inc., any International Foreign Exchange Master
      Agreement, or any other master agreement to the extent governing contracts
      of
      the kinds described in clause (a) of this definition (any such master
      agreement, together with any related schedules, a “Master
      Agreement”),
      including any such obligations or liabilities under any Master
      Agreement.

     

    “Swap
      Obligations”
means
      any and all obligations under or in connection with or otherwise owed by the
      Borrower or any Subsidiary to any Lender or any Affiliate of a Lender in respect
      of a Swap Contract.

     

    “Swap
      Termination Value”
means,
      in respect of any one or more Swap Contracts, after taking into account the
      effect of any legally enforceable netting agreement relating to such Swap
      Contracts, (a) for any date on or after the date such Swap Contracts have
      been closed out and termination value(s) determined in accordance therewith,
      such termination value(s), and (b) for any date prior to the date
      referenced in clause (a), the amount(s) determined as the mark-to-market
      value(s) for such Swap Contracts, as determined based upon one or more
      mid-market or other readily available quotations provided by any recognized
      dealer in such Swap Contracts (which may include a Lender or any Affiliate
      of a
      Lender).

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    “Swing
      Line”
means
      the revolving credit facility made available by the Swing Line Lender pursuant
      to Section 2.04.

     

    “Swing
      Line Borrowing”
means
      a
      borrowing of a Swing Line Loan pursuant to Section 2.04.

     

    “Swing
      Line Lender”
means
      Bank of America in its capacity as provider of Swing Line Loans, or any
      successor swing line lender hereunder.

     

    “Swing
      Line Loan”
has
      the
      meaning specified in Section 2.04(a).

     

    “Swing
      Line Loan Notice”
means
      a
      notice of a Swing Line Borrowing pursuant to Section 2.04(b),
      which,
      if in writing, shall be substantially in the form of Exhibit G.

     

    “Swing
      Line Note”
means
      a
      promissory note made by the Borrower in favor of the Swing Line Lender
      evidencing Swing Line Loans made by such Swing Line Lender, substantially in
      the
      form of Exhibit H.

     

    “Swing
      Line Sublimit”
means
      an amount equal to the lesser of (a) $15,000,000 and (b) the Aggregate
      Commitments. The Swing Line Sublimit is part of, and not in addition to, the
      Aggregate Commitments.

     

    “Syndication
      Agent”
means
      UBS Securities LLC, in its capacity as syndication agent under any of the Loan
      Documents, or any successor syndication agent.

     

    “Synthetic
      Lease Obligation”
means
      the monetary obligation of a Person under (a) a so-called synthetic,
      off-balance sheet or tax retention lease, or (b) an agreement for the use
      or possession of property creating obligations that do not appear on the balance
      sheet of such Person but which, upon the insolvency or bankruptcy of such
      Person, would be characterized as the indebtedness of such Person (without
      regard to accounting treatment).

     

    “Taxes”
means
      all present or future taxes, levies, imposts, duties, deductions, withholdings,
      assessments, fees or other charges imposed by any Governmental Authority,
      including any interest, additions to tax or penalties applicable
      thereto.

     

    “Total
      Debt”
means,
      as of any date of determination, determined for the Borrower and its
      Subsidiaries on a consolidated basis determined in accordance with GAAP, the
      sum
      (without duplication) of (a) all principal outstanding under the Loan
      Documents, (b) all principal obligations evidenced by a promissory note or
      otherwise representing borrowed money, (c) all reimbursement obligations
      for letters of credit that have been drawn upon and remain outstanding, and
      (d) all Capitalized Lease Obligations. 

     

    “Total
      Outstandings”
means
      the aggregate Outstanding Amount of all Loans and all L/C
      Obligations.

     

    “Type”
means,
      with respect to a Loan, its character as a Base Rate Loan or a Eurodollar Rate
      Loan.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    “UCC”
means
      the Uniform Commercial Code of Texas or, where applicable to specific
      collateral, any other relevant state.

     

    “Unfunded
      Pension Liability”
means
      the excess of a Pension Plan’s
      benefit
      liabilities under Section 4001(a)(16) of ERISA, over the current value of
      that Pension Plan’s
      assets,
      determined in accordance with the assumptions used for funding the Pension
      Plan
      pursuant to Section 412 of the Code for the applicable plan
      year.

     

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

     

    “Unlimited
      Amount Period”
means
      the period of time from the Closing Date until the commencement of the initial
      Limited Amount Period, if any. Thereafter, “Unlimited
      Amount Period”
means
      any period of time from and including the date of receipt by the Administrative
      Agent of a Compliance Certificate which is the second consecutive Compliance
      Certificate evidencing a Leverage Ratio of less than 3.00 to 1.00 to the last
      day of the first fiscal quarter thereafter, if any, in which the Leverage Ratio
      as of the end of such fiscal quarter is greater than or equal to 3.00 to
      1.00.

     

    “Unlimited
      Restricted Payment Period”
means
      the period of time from the Closing Date until the commencement of the initial
      Limited Restricted Payment Period, if any. Thereafter, “Unlimited
      Restricted Payment Period”
means
      any period of time from and including the date of receipt by the Administrative
      Agent of a Compliance Certificate which is the second consecutive Compliance
      Certificate evidencing a Leverage Ratio of less than 3.00 to 1.00 to the last
      day of the first fiscal quarter thereafter, if any, in which the Leverage Ratio
      as of the end of such fiscal quarter is greater than or equal to 3.00 to
      1.00.

     

    “Unreimbursed
      Amount”
has
      the
      meaning specified in Section 2.03(c)(i).

     

    “Wholly-Owned
      Subsidiary”
when
      used to determine the relationship of a Subsidiary to a Person, means a
      Subsidiary all of the issued and outstanding Equity Interests (other than
      directors’ qualifying shares) of which shall at the time be owned by such Person
      or one or more of such Person’s Wholly-Owned Subsidiaries or by such Person and
      one or more of such Person’s Wholly-Owned Subsidiaries.

     

    1.02 Other
      Interpretive Provisions.
      With
      reference to this Agreement and each other Loan Document, unless otherwise
      specified herein or in such other Loan Document:

     

    (a) The
      definitions of terms herein shall apply equally to the singular and plural
      forms
      of the terms defined. Whenever the context may require, any pronoun shall
      include the corresponding masculine, feminine and neuter forms. The words
“include,”
      “includes”
and
      “including”
shall
      be deemed to be followed by the phrase “without limitation.” The word
“will”
shall
      be construed to have the same meaning and effect as the word “shall.”
Unless
      the context requires otherwise, (i) any definition of or reference to any
      agreement, instrument or other document (including any Organization Document)
      shall be construed as referring to such agreement, instrument or other document
      as from time to time amended, supplemented or otherwise modified (subject to
      any
      restrictions on such amendments, supplements or 

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        
modifications
        set forth herein or in any other Loan Document), (ii) any reference herein
        to any Person shall be construed to include such Person’s successors and
        assigns, (iii) the words “herein,”
        “hereof”
and
        “hereunder,”
and
        words of similar import when used in any Loan Document, shall be construed
        to
        refer to such Loan Document in its entirety and not to any particular provision
        thereof, (iv) all references in a Loan Document to Articles, Sections,
        Exhibits and Schedules shall be construed to refer to Articles and Sections
        of,
        and Exhibits and Schedules to, the Loan Document in which such references
        appear, (v) any reference to any law shall include all statutory and
        regulatory provisions consolidating, amending, replacing or interpreting
        such
        law and any reference to any law or regulation shall, unless otherwise
        specified, refer to such law or regulation as amended, modified or supplemented
        from time to time, and (vi) the words “asset”
and
        “property”
shall
        be construed to have the same meaning and effect and to refer to any and
        all
        tangible and intangible assets and properties, including cash, securities,
        accounts and contract rights.

    

     

    (b) In
      the
      computation of periods of time from a specified date to a later specified date,
      the word “from”
means
      “from
      and including;”
the
      words “to”
and
      “until”
each
      mean “to
      but
      excluding;”
and
      the word “through”
means
      “to
      and
      including.”

     

    (c) Section
      headings herein and in the other Loan Documents are included for convenience
      of
      reference only and shall not affect the interpretation of this Agreement or
      any
      other Loan Document.

     

    1.03 Accounting
      Terms.

     

    (a) Generally.
      All
      accounting terms not specifically or completely defined herein shall be
      construed in conformity with, and all financial data (including financial ratios
      and other financial calculations) required to be submitted pursuant to this
      Agreement shall be prepared in conformity with, GAAP applied on a consistent
      basis, as in effect from time to time, applied in a manner consistent with
      that
      used in preparing the Audited Financial Statements, except
      as
      otherwise specifically prescribed herein.

     

    (b) Changes
      in GAAP.
      If at
      any time any change in GAAP would affect the computation of any financial ratio
      or requirement set forth in any Loan Document, and either the Borrower or the
      Required Lenders shall so request, the Administrative Agent, the Lenders and
      the
      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 the 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) the Borrower
      shall provide to the Administrative Agent and the Lenders financial statements
      and other documents required under this Agreement or as reasonably requested
      hereunder setting forth a reconciliation between calculations of such ratio
      or
      requirement made before and after giving effect to such change in
      GAAP.

     

    1.04 Rounding.
      Any
      financial ratios required to be maintained by the Borrower pursuant to this
      Agreement shall be calculated by dividing the appropriate component by the
      other
      component, carrying the result to one place more than the number of places
      by
      which such ratio is expressed herein and rounding the result up or down to
      the
      nearest number (with a rounding-up if there is no nearest number).

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    1.05 Times
      of Day.
      Unless
      otherwise specified, all references herein to times of day shall be references
      to Central time (daylight or standard, as applicable).

     

    1.06 Letter
      of Credit Amounts.
      Unless
      otherwise specified herein, the amount of a Letter of Credit at any time shall
      be deemed to be the stated amount of such Letter of Credit in effect at such
      time; provided,
      however,
      that
      with respect to any Letter of Credit that, by its terms or the terms of any
      Issuer Document related thereto, provides for one or more automatic increases
      in
      the stated amount thereof, the amount of such Letter of Credit shall be deemed
      to be the maximum stated amount of such Letter of Credit after giving effect
      to
      all such increases, whether or not such maximum stated amount is in effect
      at
      such time.

     

    ARTICLE
      II.

    THE
      COMMITMENTS AND CREDIT EXTENSIONS

     

    2.01 Revolving
      Loans.
      Subject
      to the terms and conditions set forth herein, each Lender severally agrees
      to
      make loans (each such loan, a “Revolving
      Loan”)
      to the
      Borrower from time to time, on any Business Day during the Availability Period,
      in an aggregate amount not to exceed at any time outstanding the amount of
      such
      Lender’s Commitment; provided,
      however,
      that
      after giving effect to any Revolving Borrowing, (i) the Total Outstandings
      shall not exceed the Aggregate Commitments, and (ii) the aggregate
      Outstanding Amount of the Revolving Loans of any Lender, plus
      such
      Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations,
plus
      such
      Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans
      shall not exceed such Lender’s Commitment. Within the limits of the Commitment,
      and subject to the other terms and conditions hereof, the Borrower may borrow
      under this Section 2.01,
      prepay
      under Section 2.05,
      and
      reborrow under this Section 2.01.
      Revolving Loans may be Base Rate Loans or Eurodollar Rate Loans, as further
      provided herein.

     

    2.02 Borrowings,
      Conversions and Continuations of Loans.

     

    (a) Each
      Borrowing, each conversion of Loans from one Type to the other, and each
      continuation of Eurodollar Rate Loans shall be made upon the Borrower’s
      irrevocable notice to the Administrative Agent, which may be given by telephone.
      Each such notice must be received by the Administrative Agent not later than
      11:00 a.m. (i) three Business Days prior to the requested date of any
      Borrowing of, conversion to or continuation of Eurodollar Rate Loans or of
      any
      conversion of Eurodollar Rate Loans to Base Rate Loans, and (ii) on the
      requested date of any Borrowing of Base Rate Loans. Each telephonic notice
      by
      the Borrower pursuant to this Section 2.02(a)
      must be
      confirmed promptly by delivery to the Administrative Agent of a written
      Revolving Loan Notice, appropriately completed and signed by a Responsible
      Officer of the Borrower. Each Borrowing of, conversion to or continuation of
      Eurodollar Rate Loans shall be in a principal amount of $5,000,000 or a whole
      multiple of $1,000,000 in excess thereof. Except as provided in Sections 2.03(c)
      and
2.04(c),
      each
      Borrowing of or conversion to Base Rate Loans shall be in a principal amount
      of
      $1,000,000 or a whole multiple of $500,000 in excess thereof. Each 

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        
Revolving
        Loan Notice (whether telephonic or written), shall specify (i) whether the
        Borrower is requesting a Borrowing, a conversion of Loans from one Type to
        the
        other, or a continuation of Eurodollar Rate Loans, (ii) the requested date
        of the Borrowing, conversion or continuation, as the case may be (which shall
        be
        a Business Day), (iii) the principal amount of Loans to be borrowed,
        converted or continued, (iv) the Type of Loans to be borrowed or to which
        existing Loans are to be converted, and (v) if applicable, the duration of
        the Interest Period with respect thereto. If the Borrower fails to specify
        a
        Type of Loan in a Revolving Loan Notice or if the Borrower fails to give
        a
        timely notice requesting a conversion or continuation, then the applicable
        Loans
        shall be made as, or converted to, Base Rate Loans. Any such automatic
        conversion to Base Rate Loans shall be effective as of the last day of the
        Interest Period then in effect with respect to the applicable Eurodollar
        Rate
        Loans. If the Borrower requests a Borrowing of, conversion to, or continuation
        of Eurodollar Rate Loans in any such Revolving Loan Notice but fails to specify
        an Interest Period, it will be deemed to have specified an Interest Period
        of
        one month.

    

     

    (b) Following
      receipt of a Revolving Loan Notice, the Administrative Agent shall promptly
      notify each Lender of the amount of its Applicable Percentage of the applicable
      Loans, and if no timely notice of a conversion or continuation is provided
      by
      the Borrower, the Administrative Agent shall notify each Lender of the details
      of any automatic conversion to Base Rate Loans described in the preceding
      subsection. In the case of a Revolving Borrowing, each Lender shall make the
      amount of its Loan available to the Administrative Agent in immediately
      available funds at the Administrative Agent’s
      Office
      not later than 1:00 p.m. on the Business Day specified in the Revolving
      Loan Notice. Upon satisfaction of the applicable conditions set forth in
Section 4.02
      (and, if
      such Borrowing is the initial Credit Extension, Section 4.01),
      the
      Administrative Agent shall make all funds so received available to the Borrower
      in like funds as received by the Administrative Agent either by
      (i) crediting the account of the Borrower on the books of Bank of America
      with the amount of such funds or (ii) wire transfer of such funds, in each
      case in accordance with instructions provided to (and reasonably acceptable
      to)
      the Administrative Agent by the Borrower; provided,
      however,
      that
      if, on the date the Revolving Loan Notice with respect to such Borrowing is
      given by the Borrower, there are L/C Borrowings outstanding, then the proceeds
      of such Borrowing, first,
      shall
      be applied to the payment in full of any such L/C Borrowings, and second,
      shall
      be made available to the Borrower as provided above.

     

    (c) Except
      as
      otherwise provided herein, a Eurodollar Rate Loan may be continued or converted
      only on the last day of an Interest Period for such Eurodollar Rate Loan. During
      the existence of a Default, no Loans may be requested as, converted to or
      continued as Eurodollar Rate Loans without the consent of the Required
      Lenders.

     

    (d) The
      Administrative Agent shall promptly notify the Borrower and the Lenders of
      the
      interest rate applicable to any Interest Period for Eurodollar Rate Loans upon
      determination of such interest rate. At any time that Base Rate Loans are
      outstanding, the Administrative Agent shall notify the Borrower and the Lenders
      of any change in Bank of America’s prime rate used in determining the Base Rate
      promptly following the public announcement of such change.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    (e) After
      giving effect to all Borrowings, all conversions of Loans from one Type to
      the
      other, and all continuations of Loans as the same Type, there shall not be
      more
      than five Interest Periods in effect with respect to Loans.

     

    2.03 Letters
      of Credit.

     

    (a) The
      Letter of Credit Commitment.

     

    (i) Subject
      to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in
      reliance upon the agreements of the Lenders set forth in this Section 2.03,
      (1) from time to time on any Business Day during the period from the
      Closing Date until the Letter of Credit Expiration Date, to issue Letters of
      Credit for the account of the Borrower, and to amend or extend Letters of Credit
      previously issued by it, in accordance with subsection (b) below, and
      (2) to honor drawings under the Letters of Credit; and (B) the Lenders
      severally agree to participate in Letters of Credit issued for the account
      of
      the Borrower and any drawings thereunder; provided
      that
      after giving effect to any L/C Credit Extension with respect to any Letter
      of
      Credit, (x) the Total Outstandings shall not exceed the Aggregate
      Commitments, (y) the aggregate Outstanding Amount of the Revolving Loans of
      any Lender, plus
      such
      Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations,
plus
      such
      Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans
      shall not exceed such Lender’s Commitment, and (z) the Outstanding Amount
      of the L/C Obligations shall not exceed the Letter of Credit Sublimit. Each
      request by the Borrower for the issuance or amendment of a Letter of Credit
      shall be deemed to be a representation by the Borrower that the L/C Credit
      Extension so requested complies with the conditions set forth in the proviso
      to
      the preceding sentence. Within the foregoing limits, and subject to the terms
      and conditions hereof, the Borrower’s ability to obtain Letters of Credit shall
      be fully revolving, and accordingly the Borrower may, during the foregoing
      period, obtain Letters of Credit to replace Letters of Credit that have expired
      or that have been drawn upon and reimbursed. All Existing Letters of Credit
      shall be deemed to have been issued pursuant hereto, and from and after the
      Closing Date shall be subject to and governed by the terms and conditions
      hereof.

     

    (ii) The
      L/C
      Issuer shall not issue any Letter of Credit, if:

     

    (A) subject
      to Section 2.03(b)(iii),
      the
      expiry date of such requested Letter of Credit would occur more than twelve
      months after the date of issuance or last extension, unless the Required Lenders
      have approved such expiry date; or

     

    (B) the
      expiry date of such requested Letter of Credit would occur after the Letter
      of
      Credit Expiration Date, unless all the Lenders have approved such expiry
      date.

     

    (iii) The
      L/C
      Issuer shall not be under any obligation to issue any Letter of Credit
      if:

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    (A) any
      order, judgment or decree of any Governmental Authority or arbitrator shall
      by
      its terms purport to enjoin or restrain the L/C Issuer from issuing such Letter
      of Credit, or any Law applicable to the L/C Issuer or any request or directive
      (whether or not having the force of law) from any Governmental Authority with
      jurisdiction over the L/C Issuer shall prohibit, or request that the L/C Issuer
      refrain from, the issuance of letters of credit generally or such Letter of
      Credit in particular or shall impose upon the L/C Issuer with respect to such
      Letter of Credit any restriction, reserve or capital requirement (for which the
      L/C Issuer is not otherwise compensated hereunder) not in effect on the Closing
      Date, or shall impose upon the L/C Issuer any unreimbursed loss, cost or expense
      which was not applicable on the Closing Date and which the L/C Issuer in good
      faith deems material to it;

     

    (B) the
      issuance of such Letter of Credit would violate one or more policies of the
      L/C
      Issuer;

     

    (C) except
      as
      otherwise agreed by the Administrative Agent and the L/C Issuer, such Letter
      of
      Credit is in an initial stated amount less than $100,000, in the case of a
      commercial Letter of Credit, or $100,000,
      in the case of a standby Letter of Credit;

     

    (D) such
      Letter of Credit is to be denominated in a currency other than Dollars;
      or

     

    (E) a
      default
      of any Lender’s obligations to fund under Section 2.03(c)
      exists
      or any Lender is at such time a Defaulting Lender hereunder, unless the L/C
      Issuer has entered into satisfactory arrangements with the Borrower or such
      Lender to eliminate the L/C Issuer’s risk with respect to such
      Lender.

     

    (iv) The
      L/C
      Issuer shall not amend any Letter of Credit if the L/C Issuer would not be
      permitted at such time to issue such Letter of Credit in its amended form under
      the terms hereof.

     

    (v) The
      L/C
      Issuer shall be under no obligation to amend any Letter of Credit if
      (A) the L/C Issuer would have no obligation at such time to issue such
      Letter of Credit in its amended form under the terms hereof, or (B) the
      beneficiary of such Letter of Credit does not accept the proposed amendment
      to
      such Letter of Credit.

     

    (vi) The
      L/C
      Issuer shall act on behalf of the Lenders with respect to any Letters of Credit
      issued by it and the documents associated therewith, and the L/C Issuer shall
      have all of the benefits and immunities (A) provided to the Administrative
      Agent in Article IX
      with
      respect to any acts taken or omissions suffered by the L/C Issuer in connection
      with Letters of Credit issued by it or proposed to be issued by it and Issuer
      Documents pertaining to such Letters of Credit as fully as if the term
“Administrative Agent” as used in Article IX
      included
      the L/C Issuer with respect to such acts or omissions, and (B) as
      additionally provided herein with respect to the L/C Issuer.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    (b) Procedures
      for Issuance and Amendment of Letters of Credit; Auto-Extension
      Letters of Credit.

     

    (i) Each
      Letter of Credit shall be issued or amended, as the case may be, upon the
      request of the Borrower delivered to the L/C Issuer (with a copy to the
      Administrative Agent) in the form of a Letter of Credit Application,
      appropriately completed and signed by a Responsible Officer of the Borrower.
      Such Letter of Credit Application must be received by the L/C Issuer and the
      Administrative Agent not later than 10:00 a.m. at least two Business Days
      (or such later date and time as the Administrative Agent and the L/C Issuer
      may
      agree in a particular instance in their sole discretion) prior to the proposed
      issuance date or date of amendment, as the case may be. In the case of a request
      for an initial issuance of a Letter of Credit, such Letter of Credit Application
      shall specify in form and detail satisfactory to the L/C Issuer: (A) the
      proposed issuance date of the requested Letter of Credit (which shall be a
      Business Day); (B) the amount thereof; (C) the expiry date thereof;
      (D) the name and address of the beneficiary thereof; (E) the documents
      to be presented by such beneficiary in case of any drawing thereunder;
      (F) the full text of any certificate to be presented by such beneficiary in
      case of any drawing thereunder; and (G) such other matters as the L/C
      Issuer may require. In the case of a request for an amendment of any outstanding
      Letter of Credit, such Letter of Credit Application shall specify in form and
      detail satisfactory to the L/C Issuer (A) the Letter of Credit to be
      amended; (B) the proposed date of amendment thereof (which shall be a
      Business Day); (C) the nature of the proposed amendment; and (D) such
      other matters as the L/C Issuer may require. Additionally, the Borrower shall
      furnish to the L/C Issuer and the Administrative Agent such other documents
      and
      information pertaining to such requested Letter of Credit issuance or amendment,
      including any Issuer Documents, as the L/C Issuer or the Administrative Agent
      may require.

     

    (ii) Promptly
      after receipt of any Letter of Credit Application, the L/C Issuer will confirm
      with the Administrative Agent (by telephone or in writing) that the
      Administrative Agent has received a copy of such Letter of Credit Application
      from the Borrower and, if not, the L/C Issuer will provide the Administrative
      Agent with a copy thereof. Unless the L/C Issuer has received written notice
      from any Lender, the Administrative Agent or any Loan Party, at least one
      Business Day prior to the requested date of issuance or amendment of the
      applicable Letter of Credit, that one or more applicable conditions contained
      in
Article IV
      shall
      not then be satisfied, then, subject to the terms and conditions hereof, the
      L/C
      Issuer shall, on the requested date, issue a Letter of Credit for the account
      of
      the Borrower or enter into the applicable amendment, as the case may be, in
      each
      case in accordance with the L/C Issuer’s usual and customary business practices.
      Immediately upon the issuance of each Letter of Credit, each Lender shall be
      deemed to, and hereby irrevocably and unconditionally agrees to, purchase from
      the L/C Issuer a risk participation in such Letter of Credit in an amount equal
      to the product of such Lender’s Applicable Percentage times
      the
      amount of such Letter of Credit.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    (iii) If
      the
      Borrower so requests in any applicable Letter of Credit Application, the L/C
      Issuer may, in its sole and absolute discretion, agree to issue a Letter of
      Credit that has automatic extension provisions (each, an “Auto-Extension
      Letter of Credit”);
      provided
      that any
      such Auto-Extension Letter of Credit must permit the L/C Issuer to prevent
      any
      such extension at least once in each twelve-month period (commencing with the
      date of issuance of such Letter of Credit) by giving prior notice to the
      beneficiary thereof not later than a day (the “Non-Extension
      Notice Date”)
      in
      each such twelve-month period to be agreed upon at the time such Letter of
      Credit is issued. Unless otherwise directed by the L/C Issuer, the Borrower
      shall not be required to make a specific request to the L/C Issuer for any
      such
      extension. Once an Auto-Extension Letter of Credit has been issued, the Lenders
      shall be deemed to have authorized (but may not require) the L/C Issuer to
      permit the extension of such Letter of Credit at any time to an expiry date
      not
      later than the Letter of Credit Expiration Date; provided,
      however,
      that
      the L/C Issuer shall not permit any such extension if (A) the L/C Issuer
      has determined that it would not be permitted, or would have no obligation,
      at
      such time to issue such Letter of Credit in its revised form (as extended)
      under
      the terms hereof (by reason of the provisions of clause (ii) or (iii) of
Section 2.03(a)
      or
      otherwise), or (B) it has received notice (which may be by telephone or in
      writing) on or before the day that is five Business Days before the
      Non-Extension Notice Date (1) from the Administrative Agent that the
      Required Lenders have elected not to permit such extension or (2) from the
      Administrative Agent, any Lender or the Borrower that one or more of the
      applicable conditions specified in Section 4.02
      is not
      then satisfied, and in each such case directing the L/C Issuer not to permit
      such extension.

     

    (iv) Promptly
      after its delivery of any Letter of Credit or any amendment to a Letter of
      Credit to an advising bank with respect thereto or to the beneficiary thereof,
      the L/C Issuer will also deliver to the Borrower and the Administrative Agent
      a
      true and complete copy of such Letter of Credit or amendment.

     

    (c) Drawings
      and Reimbursements; Funding of Participations.

     

    (i) Upon
      receipt from the beneficiary of any Letter of Credit of any notice of a drawing
      under such Letter of Credit, the L/C Issuer shall notify the Borrower and the
      Administrative Agent thereof. Not later than 11:00 a.m. on the date of any
      payment by the L/C Issuer under a Letter of Credit (each such date, an
“Honor
      Date”),
      the
      Borrower shall reimburse the L/C Issuer through the Administrative Agent in
      an
      amount equal to the amount of such drawing. If the Borrower fails to so
      reimburse the L/C Issuer by such time, the Administrative Agent shall promptly
      notify each Lender of the Honor Date, the amount of the unreimbursed drawing
      (the “Unreimbursed
      Amount”),
      and
      the amount of such Lender’s Applicable Percentage thereof. In such event, the
      Borrower shall be deemed to have requested a Revolving Borrowing of Base Rate
      Loans to be disbursed on the Honor Date in an amount equal to the Unreimbursed
      Amount, without regard to the minimum and multiples specified in Section 2.02
      for the
      principal amount of Base Rate Loans, but subject to the amount of the unutilized
      portion of the Commitment and the conditions set forth in Section 4.02
      (other
      than the delivery of a Revolving Loan Notice). Any notice given by the L/C
      Issuer or the Administrative Agent pursuant to this Section 2.03(c)(i)
      may be
      given by telephone if immediately confirmed in writing; provided
      that the
      lack of such an immediate confirmation shall not affect the conclusiveness
      or
      binding effect of such notice.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    (ii) Each
      Lender shall upon any notice pursuant to Section 2.03(c)(i)
      make
      funds available to the Administrative Agent for the account of the L/C Issuer
      at
      the Administrative Agent’s Office in an amount equal to its Applicable
      Percentage of the Unreimbursed Amount not later than 1:00 p.m. on the
      Business Day specified in such notice by the Administrative Agent, whereupon,
      subject to the provisions of Section 2.03(c)(iii),
      each
      Lender that so makes funds available shall be deemed to have made a Base Rate
      Loan to the Borrower in such amount. The Administrative Agent shall remit the
      funds so received to the L/C Issuer.

     

    (iii) With
      respect to any Unreimbursed Amount that is not fully refinanced by a Borrowing
      of Base Rate Loans because the conditions set forth in Section 4.02
      cannot
      be satisfied or for any other reason, the Borrower shall be deemed to have
      incurred from the L/C Issuer an L/C Borrowing in the amount of the Unreimbursed
      Amount that is not so refinanced, which L/C Borrowing shall be due and payable
      on demand (together with interest) and shall bear interest at the Default Rate.
      In such event, each Lender’s payment to the Administrative Agent for the account
      of the L/C Issuer pursuant to Section 2.03(c)(ii)
      shall be
      deemed payment in respect of its participation in such L/C Borrowing and shall
      constitute an L/C Advance from such Lender in satisfaction of its participation
      obligation under this Section 2.03.

     

    (iv) Until
      each Lender funds its Revolving Loan or L/C Advance pursuant to this
Section 2.03(c)
      to
      reimburse the L/C Issuer for any amount drawn under any Letter of Credit,
      interest in respect of such Lender’s Applicable Percentage of such amount shall
      be solely for the account of the L/C Issuer.

     

    (v) Each
      Lender’s obligation to make Revolving Loans or L/C Advances to reimburse the L/C
      Issuer for amounts drawn under Letters of Credit, as contemplated by this
Section 2.03(c),
      shall
      be absolute and unconditional and shall not be affected by any circumstance,
      including (A) any setoff, counterclaim, recoupment, defense or other right
      which such Lender may have against the L/C Issuer, the Borrower or any other
      Person for any reason whatsoever; (B) the occurrence or continuance of a
      Default, or (C) any other occurrence, event or condition, whether or not
      similar to any of the foregoing; provided,
      however,
      that
      each Lender’s obligation to make Revolving Loans pursuant to this Section 2.03(c)
      is
      subject to the conditions set forth in Section 4.02
      (other
      than delivery by the Borrower of a Revolving Loan Notice). No such making of
      an
      L/C Advance shall relieve or otherwise impair the obligation of the Borrower
      to
      reimburse the L/C Issuer for the amount of any payment made by the L/C Issuer
      under any Letter of Credit, together with interest as provided
      herein.

     

    (vi) If
      any
      Lender fails to make available to the Administrative Agent for the account
      of
      the L/C Issuer any amount required to be paid by such Lender pursuant to the
      foregoing provisions of this Section 2.03(c)
      by the
      time specified in Section 2.03(c)(ii),
      the L/C
      Issuer shall be entitled to recover from such Lender (acting through the
      Administrative Agent), on demand, such amount with 

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

      interest
        thereon for the period from the date such payment is required to the date
        on
        which such payment is immediately available to the L/C Issuer at a rate per
        annum equal to the greater of the Federal Funds Rate and a rate determined
        by
        the L/C Issuer in accordance with banking industry rules on interbank
        compensation, plus any administrative, processing or similar fees customarily
        charged by the L/C Issuer in connection with the foregoing. If such Lender
        pays
        such amount (with interest and fees as aforesaid), the amount so paid (excluding
        such interest and fees) shall constitute such Lender’s Revolving Loan included
        in the relevant Revolving Borrowing or L/C Advance in respect of the relevant
        L/C Borrowing, as the case may be. A certificate of the L/C Issuer submitted
        to
        any Lender (through the Administrative Agent) with respect to any amounts
        owing
        under this clause (vi) shall be conclusive absent manifest
        error.

    

     

    (vii) The
      L/C
      Issuer will provide to the Administrative Agent reports in detail acceptable
      to
      the Administrative Agent (including draws, payments and reconciliation payments)
      with respect to outstanding Letters of Credit issued by the L/C Issuer, in
      such
      frequency as reasonably requested by the Administrative Agent. The
      Administrative Agent will provide quarterly reports to each Lender with respect
      to the outstanding Letters of Credit at such time issued by the L/C Issuer,
      and
      such other information regarding outstanding Letters of Credit or L/C
      Obligations reasonably requested by any Lender from time to time.

     

    (d) Repayment
      of Participations.

     

    (i) At
      any
      time after the L/C Issuer has made a payment under any Letter of Credit and
      has
      received from any Lender such Lender’s L/C Advance in respect of such payment in
      accordance with Section 2.03(c),
      if the
      Administrative Agent receives for the account of the L/C Issuer any payment
      in
      respect of the related Unreimbursed Amount or interest thereon (whether directly
      from the Borrower or otherwise, including proceeds of Cash Collateral applied
      thereto by the Administrative Agent), the Administrative Agent will distribute
      to such Lender its Applicable Percentage thereof (appropriately adjusted, in
      the
      case of interest payments, to reflect the period of time during which such
      Lender’s L/C Advance was outstanding) in the same funds as those received by the
      Administrative Agent.

     

    (ii) If
      any
      payment received by the Administrative Agent for the account of the L/C Issuer
      pursuant to Section 2.03(c)(i)
      is
      required to be returned under any of the circumstances described in Section 10.05
      (including pursuant to any settlement entered into by the L/C Issuer in its
      discretion), each Lender shall pay to the Administrative Agent for the account
      of the L/C Issuer its Applicable Percentage thereof on demand of the
      Administrative Agent, plus interest thereon from the date of such demand to
      the
      date such amount is returned by such Lender, at a rate per annum equal to the
      Federal Funds Rate from time to time in effect. The obligations of the Lenders
      under this clause shall survive the payment in full of the Obligations and
      the
      termination of this Agreement.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    (e) Obligations
      Absolute. The
      obligation of the Borrower to reimburse the L/C Issuer for each drawing under
      each Letter of Credit and to repay each L/C Borrowing shall be absolute,
      unconditional and irrevocable, and shall be paid strictly in accordance with
      the
      terms of this Agreement under all circumstances, including the
      following:

     

    (i) any
      lack
      of validity or enforceability of such Letter of Credit, this Agreement, or
      any
      other Loan Document;

     

    (ii) the
      existence of any claim, counterclaim, setoff, defense or other right that the
      Borrower or any Subsidiary may have at any time against any beneficiary or
      any
      transferee of such Letter of Credit (or any Person for whom any such beneficiary
      or any such transferee may be acting), the L/C Issuer or any other Person,
      whether in connection with this Agreement, the transactions contemplated hereby
      or by such Letter of Credit or any agreement or instrument relating thereto,
      or
      any unrelated transaction;

     

    (iii) any
      draft, demand, certificate or other document presented under such 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; or any
      loss
      or delay in the transmission or otherwise of any document required in order
      to
      make a drawing under such Letter of Credit;

     

    (iv) any
      payment by the L/C Issuer under such Letter of Credit against presentation
      of a
      draft or certificate that does not strictly comply with the terms of such Letter
      of Credit; or any payment made by the L/C Issuer under such Letter of Credit
      to
      any Person purporting to be a trustee in bankruptcy, debtor-in-possession,
      assignee for the benefit of creditors, liquidator, receiver or other
      representative of or successor to any beneficiary or any transferee of such
      Letter of Credit, including any arising in connection with any proceeding under
      any Debtor Relief Law; or

     

    (v) any
      other
      circumstance or happening whatsoever, whether or not similar to any of the
      foregoing, including any other circumstance that might otherwise constitute
      a
      defense available to, or a discharge of, the Borrower or any
      Subsidiary.

     

    The
      Borrower shall promptly examine a copy of each Letter of Credit and each
      amendment thereto that is delivered to it and, in the event of any claim of
      noncompliance with the Borrower’s
      instructions or other irregularity, the Borrower will immediately notify the
      L/C
      Issuer. The Borrower shall be conclusively deemed to have waived any such claim
      against the L/C Issuer and its correspondents unless such notice is given as
      aforesaid.

     

    (f) Role
      of L/C Issuer. Each
      Lender and the Borrower agree that, in paying any drawing under a Letter of
      Credit, the L/C Issuer shall not have any responsibility to obtain any document
      (other than any sight draft, certificates and documents expressly required
      by
      the Letter of Credit) or to ascertain or inquire as to the validity or accuracy
      of any such document or the authority of the Person executing or delivering
      any
      such document. None of the L/C Issuer, the Administrative Agent, any of their
      respective Related Parties nor any correspondent, participant or assignee of
      the
      L/C Issuer shall be liable to any Lender for (i) any action taken or
      omitted in connection herewith at the request or with the approval of the
      Lenders or the Required Lenders, as applicable; (ii) any action taken or
      omitted in the absence of 

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        
gross
        negligence or willful misconduct; or (iii) the due execution,
        effectiveness, validity or enforceability of any document or instrument related
        to any Letter of Credit or Issuer Document. The Borrower hereby assumes all
        risks of the acts or omissions of any beneficiary or transferee with respect
        to
        its use of any Letter of Credit; provided,
        however,
        that
        this assumption is not intended to, and shall not, preclude the
        Borrower’s
        pursuing such rights and remedies as it may have against the beneficiary
        or
        transferee at law or under any other agreement. None of the L/C Issuer, the
        Administrative Agent, any of their respective Related Parties nor any
        correspondent, participant or assignee of the L/C Issuer shall be liable
        or
        responsible for any of the matters described in clauses (i) through (v) of
Section 2.03(e);
        provided,
        however,
        that
        anything in such clauses to the contrary notwithstanding, the Borrower may
        have
        a claim against the L/C Issuer, and the L/C Issuer may be liable to the
        Borrower, to the extent, but only to the extent, of any direct, as opposed
        to
        consequential or exemplary, damages suffered by the Borrower which the Borrower
        proves were caused by the L/C Issuer’s willful misconduct or gross negligence or
        the L/C Issuer’s willful failure to pay under any Letter of Credit after the
        presentation to it by the beneficiary of a sight draft and certificate(s)
        strictly complying with the terms and conditions of a Letter of
        Credit. 
        In
        furtherance and not in limitation of the foregoing, the L/C Issuer may accept
        documents that appear on their face to be in order, without responsibility
        for
        further investigation, regardless of any notice or information to the contrary,
        and the L/C Issuer shall not be responsible for the validity or sufficiency
        of
        any instrument transferring or assigning or purporting to transfer or assign
        a
        Letter of Credit or the rights or benefits thereunder or proceeds thereof,
        in
        whole or in part, which may prove to be invalid or ineffective for any
        reason.

    

     

    (g) Cash
      Collateral.
      Upon
      the request of the Administrative Agent, (i) if the L/C Issuer has honored
      any full or partial drawing request under any Letter of Credit and such drawing
      has resulted in an L/C Borrowing, or (ii) if, as of the Letter of Credit
      Expiration Date, any L/C Obligation for any reason remains outstanding, the
      Borrower shall, in each case, immediately Cash Collateralize the then
      Outstanding Amount of all L/C Obligations. Sections 2.05
      and
8.02(c)
      set
      forth certain additional requirements to deliver Cash Collateral hereunder.
      For
      purposes of this Section 2.03,
      Section 2.05
      and
      Section 8.02(c),
      “Cash
      Collateralize”
means
      to pledge and deposit with or deliver to the Administrative Agent, for the
      benefit of the L/C Issuer and the Lenders, as collateral for the L/C
      Obligations, cash or deposit account balances pursuant to documentation in
      form
      and substance satisfactory to the Administrative Agent and the L/C Issuer (which
      documents are hereby consented to by the Lenders). Derivatives of such term
      have
      corresponding meanings. The Borrower hereby grants to the Administrative Agent,
      for the benefit of the L/C Issuer and the Lenders, a security interest in all
      such cash, deposit accounts and all balances therein and all proceeds of the
      foregoing. Cash Collateral shall be maintained in blocked, non-interest bearing
      deposit accounts at Bank of America.

     

    (h) Applicability
      of ISP and UCP.
      Unless
      otherwise expressly agreed by the L/C Issuer and the Borrower when a Letter
      of
      Credit is issued (including any such agreement applicable to an Existing Letter
      of Credit), (i) the rules of the ISP shall apply to each standby Letter of
      Credit, and (ii) the rules of the Uniform Customs and Practice for
      Documentary Credits, as most recently published by the International Chamber
      of
      Commerce at the time of issuance, shall apply to each commercial Letter of
      Credit.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    (i) Letter
      of Credit Fees.
      The
      Borrower shall pay to the Administrative Agent for the account of each Lender
      in
      accordance with its Applicable Percentage a Letter of Credit fee (the
“Letter
      of Credit Fee”)
      for
      each Letter of Credit equal to the Applicable Rate times
      the
      daily amount available to be drawn under such Letter of Credit. For purposes
      of
      computing the daily amount available to be drawn under any Letter of Credit,
      the
      amount of such Letter of Credit shall be determined in accordance with
Section 1.06.
      Letter
      of Credit Fees shall be (i) computed on a quarterly basis in arrears and
      (ii) due and payable on the first Business Day after the end of each March,
      June, September and December, commencing with the first such date to occur
      after
      the issuance of such Letter of Credit, on the Letter of Credit Expiration Date
      and thereafter on demand. If there is any change in the Applicable Rate during
      any quarter, the daily amount available to be drawn under each Letter of Credit
      shall be computed and multiplied by the Applicable Rate separately for each
      period during such quarter that such Applicable Rate was in effect.
      Notwithstanding anything to the contrary contained herein, upon the request
      of
      the Required Lenders, while any Event of Default exists, all Letter of Credit
      Fees shall accrue at the Default Rate.

     

    (j) Fronting
      Fee and Documentary and Processing Charges Payable to L/C Issuer.
      The
      Borrower shall pay directly to the L/C Issuer for its own account a fronting
      fee
      with respect to each (i) commercial Letter of Credit at rate separately
      agreed to by the Borrower and the L/C Issuer and (ii) standby Letter of
      Credit, at the rate per annum specified in the Fee
      Letter, computed on the daily amount available to be drawn under such Letter
      of
      Credit on a quarterly basis in arrears. Such fronting fee with respect to
      commercial Letters of Credit shall be due and payable on the date of issuance
      thereof. Such fronting fee with respect to standby Letters of Credit shall
      be
      due and payable on the tenth Business Day after the end of each March, June,
      September and December in respect of the most recently-ended quarterly period
      (or portion thereof, in the case of the first payment), commencing with the
      first such date to occur after the issuance of such Letter of Credit, on the
      Letter of Credit Expiration Date and thereafter on demand. For purposes of
      computing the daily amount available to be drawn under any Letter of Credit,
      the
      amount of such Letter of Credit shall be determined in accordance with
Section 1.06.
      In
      addition, the Borrower shall pay directly to the L/C Issuer for its own account
      the customary issuance, presentation, amendment and other processing fees,
      and
      other standard costs and charges, of the L/C Issuer relating to letters of
      credit as from time to time in effect. Such customary fees and standard costs
      and charges are due and payable on demand and are nonrefundable.

     

    (k) Conflict
      with Issuer Documents.
      In the
      event of any conflict between the terms hereof and the terms of any Issuer
      Document, the terms hereof shall control.

     

    2.04 Swing
      Line Loans.

     

    (a) The
      Swing Line.
      Subject
      to the terms and conditions set forth herein, the Swing Line Lender agrees,
      in
      reliance upon the agreements of the other Lenders set forth in this Section 2.04,
      to make
      loans (each such loan, a “Swing
      Line Loan”)
      to the
      Borrower from time to time on any Business Day during the Availability Period
      in
      an aggregate amount not to exceed at any time outstanding the amount of

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        
the
        Swing
        Line Sublimit, notwithstanding the fact that such Swing Line Loans, when
        aggregated with the Applicable Percentage of the Outstanding Amount of Revolving
        Loans and L/C Obligations of the Lender acting as Swing Line Lender, may
        exceed
        the amount of such Lender’s Applicable Percentage of the Aggregate Commitments;
provided,
        however,
        that
        after giving effect to any Swing Line Loan, (i) the Total Outstandings
        shall not exceed the Aggregate Commitments, and (ii) the aggregate
        Outstanding Amount of the Revolving Loans of any Lender, plus
        such
        Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations,
        plus
        such
        Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans
        shall not exceed such Lender’s Commitment, and provided,
        further,
        that
        the Borrower shall not use the proceeds of any Swing Line Loan to refinance
        any
        outstanding Swing Line Loan. Within the foregoing limits, and subject to
        the
        other terms and conditions hereof, the Borrower may borrow under this
Section 2.04,
        prepay
        under Section 2.05,
        and
        reborrow under this Section 2.04.
        Each
        Swing Line Loan shall be a Base Rate Loan. Immediately upon the making of
        a
        Swing Line Loan, each Lender shall be deemed to, and hereby irrevocably and
        unconditionally agrees to, purchase from the Swing Line Lender a risk
        participation in such Swing Line Loan in an amount equal to the product of
        such
        Lender’s Applicable Percentage times
        the
        amount of such Swing Line Loan.

    

     

    (b) Borrowing
      Procedures.
      Each
      Swing Line Borrowing shall be made upon the Borrower’s irrevocable notice to the
      Swing Line Lender and the Administrative Agent, which may be given by telephone.
      Each such notice must be received by the Swing Line Lender and the
      Administrative Agent not later than 1:00 p.m. on the requested borrowing
      date, and shall specify (i) the amount to be borrowed, which shall be a
      minimum of $100,000, and (ii) the requested borrowing date, which shall be
      a Business Day. Each such telephonic notice must be confirmed promptly by
      delivery to the Swing Line Lender and the Administrative Agent of a written
      Swing Line Loan Notice, appropriately completed and signed by a Responsible
      Officer of the Borrower. Promptly after receipt by the Swing Line Lender of
      any
      telephonic Swing Line Loan Notice, the Swing Line Lender will confirm with
      the
      Administrative Agent (by telephone or in writing) that the Administrative Agent
      has also received such Swing Line Loan Notice and, if not, the Swing Line Lender
      will notify the Administrative Agent (by telephone or in writing) of the
      contents thereof. Unless the Swing Line Lender has received notice (by telephone
      or in writing) from the Administrative Agent (including at the request of any
      Lender) prior to 1:00 p.m. on the date of the proposed Swing Line Borrowing
      (A) directing the Swing Line Lender not to make such Swing Line Loan as a
      result of the limitations set forth in the proviso to the first sentence of
      Section 2.04(a),
      or
      (B) that one or more of the applicable conditions specified in Article IV
      is not
      then satisfied, then, subject to the terms and conditions hereof, the Swing
      Line
      Lender will, not later than 2:00 p.m. on the borrowing date specified in
      such Swing Line Loan Notice, make the amount of its Swing Line Loan available
      to
      the Borrower at its office by crediting the account of the Borrower on the
      books
      of the Swing Line Lender in immediately available funds.

     

    (c) Refinancing
      of Swing Line Loans.
      

     

    (i) The
      Swing
      Line Lender at any time in its sole and absolute discretion may request, on
      behalf of the Borrower (which hereby irrevocably authorizes the Swing Line
      Lender to so request on its behalf), that each Lender make a Base Rate Loan
      in
      an amount equal to such Lender’s Applicable Percentage of the amount of Swing
      Line Loans then outstanding. Such request shall be made in 

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

      writing
        (which written request shall be deemed to be a Revolving Loan Notice for
        purposes hereof) and in accordance with the requirements of Section 2.02,
        without
        regard to the minimum and multiples specified therein for the principal amount
        of Base Rate Loans, but subject to the unutilized portion of the Aggregate
        Commitments and the conditions set forth in Section 4.02.
        The
        Swing Line Lender shall furnish the Borrower with a copy of the applicable
        Revolving Loan Notice promptly after delivering such notice to the
        Administrative Agent. Each Lender shall make an amount equal to its Applicable
        Percentage of the amount specified in such Revolving Loan Notice available
        to
        the Administrative Agent in immediately available funds for the account of
        the
        Swing Line Lender at the Administrative Agent’s Office not later than
        12:00 noon on the day specified in such Revolving Loan Notice, whereupon,
        subject to Section 2.04(c)(ii),
        each
        Lender that so makes funds available shall be deemed to have made a Base
        Rate
        Loan to the Borrower in such amount. The Administrative Agent shall remit
        the
        funds so received to the Swing Line Lender.

    

     

    (ii) If
      for
      any reason any Swing Line Loan cannot be refinanced by such a Borrowing in
      accordance with Section 2.04
      (c)(i),
      the
      request for Base Rate Loans submitted by the Swing Line Lender as set forth
      herein shall be deemed to be a request by the Swing Line Lender that each of
      the
      Lenders fund its risk participation in the relevant Swing Line Loan and each
      Lender’s payment to the Administrative Agent for the account of the Swing Line
      Lender pursuant to Section 2.04(c)(i)
      shall be
      deemed payment in respect of such participation.

     

    (iii) If
      any
      Lender fails to make available to the Administrative Agent for the account
      of
      the Swing Line Lender any amount required to be paid by such Lender pursuant
      to
      the foregoing provisions of this Section 2.04(c)
      by the
      time specified in Section 2.04(c)(i),
      the
      Swing Line Lender shall be entitled to recover from such Lender (acting through
      the Administrative Agent), on demand, such amount with interest thereon for
      the
      period from the date such payment is required to the date on which such payment
      is immediately available to the Swing Line Lender at a rate per annum equal
      to
      the greater of the Federal Funds Rate and a rate determined by the Swing Line
      Lender in accordance with banking industry rules on interbank compensation,
      plus
      any administrative, processing or similar fees customarily charged by the Swing
      Line Lender in connection with the foregoing. If such Lender pays such amount
      (with interest and fees as aforesaid), the amount so paid (excluding such
      interest and fees) shall constitute such Lender’s Revolving Loan included in the
      relevant Revolving Borrowing or funded participation in the relevant Swing
      Line
      Loan, as the case may be. A certificate of the Swing Line Lender submitted
      to
      any Lender (through the Administrative Agent) with respect to any amounts owing
      under this clause (iii) shall be conclusive absent manifest
      error.

     

    (iv) Each
      Lender’s obligation to make Revolving Loans or to purchase and fund risk
      participations in Swing Line Loans pursuant to this Section 2.04(c)
      shall be
      absolute and unconditional and shall not be affected by any circumstance,
      including (A) any setoff, counterclaim, recoupment, defense or other right
      which such Lender may have against the Swing Line Lender, the Borrower or

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

      any
        other
        Person for any reason whatsoever, (B) the occurrence or continuance of a
        Default, or (C) any other occurrence, event or condition, whether or not
        similar to any of the foregoing; provided,
        however,
        that
        each Lender’s obligation to make Revolving Loans pursuant to this Section 2.04(c)
        is
        subject to the conditions set forth in Section 4.02.
        No such
        funding of risk participations shall relieve or otherwise impair the obligation
        of the Borrower to repay Swing Line Loans, together with interest as provided
        herein.

    

     

    (d) Repayment
      of Participations.

     

    (i) At
      any
      time after any Lender has purchased and funded a risk participation in a Swing
      Line Loan, if the Swing Line Lender receives any payment on account of such
      Swing Line Loan, the Swing Line Lender will distribute to such Lender its
      Applicable Percentage of such payment (appropriately adjusted, in the case
      of
      interest payments, to reflect the period of time during which such Lender’s risk
      participation was funded) in the same funds as those received by the Swing
      Line
      Lender.

     

    (ii) If
      any
      payment received by the Swing Line Lender in respect of principal or interest
      on
      any Swing Line Loan is required to be returned by the Swing Line Lender under
      any of the circumstances described in Section 10.05
      (including pursuant to any settlement entered into by the Swing Line Lender
      in
      its discretion), each Lender shall pay to the Swing Line Lender its Applicable
      Percentage thereof on demand of the Administrative Agent, plus interest thereon
      from the date of such demand to the date such amount is returned, at a rate
      per
      annum equal to the Federal Funds Rate. The Administrative Agent will make such
      demand upon the request of the Swing Line Lender. The obligations of the Lenders
      under this clause shall survive the payment in full of the Obligations and
      the
      termination of this Agreement.

     

    (e) Interest
      for Account of Swing Line Lender.
      The
      Swing Line Lender shall be responsible for invoicing the Borrower for interest
      on the Swing Line Loans. Until each Lender funds its Base Rate Loan or risk
      participation pursuant to this Section 2.04
      to
      refinance such Lender’s Applicable Percentage of any Swing Line Loan, interest
      in respect of such Applicable Percentage shall be solely for the account of
      the
      Swing Line Lender.

     

    (f) Payments
      Directly to Swing Line Lender.
      The
      Borrower shall make all payments of principal and interest in respect of the
      Swing Line Loans directly to the Swing Line Lender.

     

    2.05 Prepayments.

     

    (a) Voluntary
      Prepayments - Revolving Loans.
      The
      Borrower may, upon notice to the Administrative Agent, at any time or from
      time
      to time voluntarily prepay Revolving Loans in whole or in part without premium
      or penalty; provided
      that
      (i) such notice must be received by the Administrative Agent not later than
      11:00 a.m. (A) three Business Days prior to any date of prepayment of
      Eurodollar Rate Loans and (B) on the date of prepayment of Base Rate Loans;
      (ii) any prepayment of Eurodollar Rate Loans shall be in a principal amount
      of $5,000,000 or a whole multiple of $1,000,000 in excess thereof; and

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

      (iii) any
        prepayment of Base Rate Loans shall be in a principal amount of $1,000,000
        or a
        whole multiple of $500,000 in excess thereof or, in each case, if less, the
        entire principal amount thereof then outstanding. Each such notice shall
        specify
        the date and amount of such prepayment and the Type(s) of Loans to be prepaid
        and, if Eurodollar Rate Loans are to be prepaid, the Interest Period(s) of
        such
        Loans. The Administrative Agent will promptly notify each Lender of its receipt
        of each such notice, and of the amount of such Lender’s
        Applicable Percentage of such prepayment. If such notice is given by the
        Borrower, the Borrower shall make such prepayment and the payment amount
        specified in such notice shall be due and payable on the date specified therein.
        Any prepayment of a Eurodollar Rate Loan shall be accompanied by all accrued
        interest on the amount prepaid, together with any additional amounts required
        pursuant to Section
        3.05.
        Each
        such prepayment shall be applied to the Revolving Loans of the Lenders in
        accordance with their respective Applicable Percentages.

    

     

    (b) Voluntary
      Prepayments - Swing Line Loans.
      The
      Borrower may, upon notice to the Swing Line Lender (with a copy to the
      Administrative Agent), at any time or from time to time, voluntarily prepay
      Swing Line Loans in whole or in part without premium or penalty; provided
      that
      (i) such notice must be received by the Swing Line Lender and the
      Administrative Agent not later than 12:00 noon on the date of the
      prepayment, and (ii) any such prepayment shall be in a minimum principal
      amount of $100,000. Each such notice shall specify the date and amount of such
      prepayment. If such notice is given by the Borrower, the Borrower shall make
      such prepayment and the payment amount specified in such notice shall be due
      and
      payable on the date specified therein.

     

    (c) Mandatory
      Prepayments - Excess Outstandings.
      If for
      any reason the Total Outstandings at any time exceed the Aggregate Commitments
      then in effect, the Borrower shall immediately prepay Loans and/or Cash
      Collateralize the L/C Obligations in an aggregate amount equal to such excess;
      provided,
      however,
      that
      the Borrower shall not be required to Cash Collateralize the L/C Obligations
      pursuant to this Section 2.05(c)
      unless
      after the prepayment in full of the Loans the Total Outstandings exceed the
      Aggregate Commitments then in effect.

     

    (d) Mandatory
      Prepayments - Asset Dispositions.
      Upon
      the Disposition of any assets of the Borrower or its Subsidiaries, other than
      Dispositions permitted by clauses (a) through (f) of Section 7.05,
      the
      Borrower shall make a mandatory prepayment to the Administrative Agent for
      the
      Lenders (and if the Outstanding Amount of all Loans is zero, pledge to the
      Administrative Agent cash or cash equivalent investments in an amount equal
      to
      the lesser of (i) the aggregate amount of the Net Cash Proceeds of such
      Disposition and (ii) any Outstanding Amount of L/C Obligations) in the
      aggregate amount equal to the Net Cash Proceeds of such Disposition, which
      prepayment shall be applied to the Loans; provided,
      however,
      if on
      the date of receipt by the Borrower or any of its Subsidiaries of such Net
      Cash
      Proceeds all of the conditions precedent to a Credit Extension set forth in
      Section 4.02
      are
      satisfied (other than the delivery of a Revolving Loan Notice), the Borrower
      shall not be required to make such prepayment.

     

    (e) Repayment
      Application.
      Any
      mandatory prepayment of Loans pursuant to Section 2.05(c)
      or
(d)
      shall
      (i) include and be applied to interest to the date of such prepayment on
      the principal amount prepaid and any additional amounts required pursuant to
      Section 3.05,
      and
      (ii) not be subject to any notice and minimum payment provisions.

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    2.06 Termination
      or Reduction of Commitments.
      The
      Borrower may, upon notice to the Administrative Agent, terminate the Aggregate
      Commitments, or from time to time permanently reduce the Aggregate Commitments;
      provided
      that
      (i) any such notice shall be received by the Administrative Agent not later
      than 10:00 a.m. five Business Days prior to the date of termination or
      reduction, (ii) any such partial reduction shall be in an aggregate amount
      of $10,000,000 or any whole multiple of $1,000,000 in excess thereof,
      (iii) the Borrower shall not terminate or reduce the Aggregate Commitments
      if, after giving effect thereto and to any concurrent prepayments hereunder,
      the
      Total Outstandings would exceed the Aggregate Commitments, and (iv) if,
      after giving effect to any reduction of the Aggregate Commitments, the Letter
      of
      Credit Sublimit or the Swing Line Sublimit exceeds the amount of the Aggregate
      Commitments, such Sublimit shall be automatically reduced by the amount of
      such
      excess. The Administrative Agent will promptly notify the Lenders of any such
      notice of termination or reduction of the Aggregate Commitments. Any reduction
      of the Aggregate Commitments shall be applied to the Commitment of each Lender
      according to its Applicable Percentage. All fees accrued until the effective
      date of any termination of the Aggregate Commitments shall be paid on the
      effective date of such termination.

     

    2.07 Repayment
      of Loans.

     

    (a) The
      Borrower shall repay to the Lenders on the Maturity Date the aggregate principal
      amount of Revolving Loans outstanding on such date and all other outstanding
      and
      unpaid Obligations.

     

    (b) The
      Borrower shall repay each Swing Line Loan on the earlier to occur of
      (i) demand of the Swing Line Lender (which demand shall not be made earlier
      than ten Business Days after each Swing Line Loan is made) and (ii) the
      Maturity Date.

     

    2.08 Interest.

     

    (a) Subject
      to the provisions of subsection (b) below, (i) each Eurodollar Rate
      Loan shall bear interest on the outstanding principal amount thereof for each
      Interest Period at a rate per annum equal to the lesser of (x) the Highest
      Lawful Rate and (y) the Eurodollar Rate for such Interest Period
plus
      the
      Applicable Rate; (ii) each Base Rate Loan shall bear interest on the
      outstanding principal amount thereof from the applicable borrowing date at
      a
      rate per annum equal to the lesser of (x) the Highest Lawful Rate and
      (y) the Base Rate in effect from time to time plus
      the
      Applicable Rate; and (iii) each Swing Line Loan shall bear interest on the
      outstanding principal amount thereof from the applicable borrowing date at
      a
      rate per annum equal to the lesser of (x) the Highest Lawful Rate and
      (y) the Base Rate plus
      the
      Applicable Rate.

     

    (b) (1) If
      any
      amount of principal of any Loan is not paid when due (without regard to any
      applicable grace periods), whether at stated maturity, by acceleration or
      otherwise, such amount shall thereafter bear interest at a fluctuating interest
      rate per annum at all times equal to the lesser of (x) the Highest Lawful
      Rate and (y) the Default Rate, to the fullest extent permitted by
      applicable Laws.

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    (ii) If
      any
      amount (other than principal of any Loan) payable by the Borrower under any
      Loan
      Document is not paid when due (without regard to any applicable grace periods),
      whether at stated maturity, by acceleration or otherwise, then upon the request
      of the Required Lenders, such amount shall thereafter bear interest, to the
      fullest extent permitted by Applicable Law at a fluctuating interest rate per
      annum at all times equal to the lesser of (x) the Highest Lawful Rate and
      (y) the Default Rate, to the fullest extent permitted by applicable
      Laws.

     

    (iii) Upon
      the
      request of the Required Lenders, while any Event of Default exists, the Borrower
      shall pay interest on the principal amount of all outstanding Obligations
      hereunder at a fluctuating interest rate per annum at all times equal to the
      Default Rate to the fullest extent permitted by applicable Laws.

     

    (iv) Accrued
      and unpaid interest on past due amounts (including interest on past due
      interest) shall be due and payable upon demand.

     

    (c) Interest
      on each Loan shall be due and payable in arrears on each Interest Payment Date
      applicable thereto and at such other times as may be specified herein. Interest
      hereunder shall be due and payable in accordance with the terms hereof before
      and after judgment, and before and after the commencement of any proceeding
      under any Debtor Relief Law.

     

    2.09 Fees.
      In
      addition to certain fees described in subsections (i)
      and
(j)
      of
Section 2.03:

     

    (a) Commitment
      Fee.
      The
      Borrower shall pay to the Administrative Agent for the account of each Lender
      in
      accordance with its Applicable Percentage, a commitment fee (“Commitment
      Fee”)
      equal
      to the Applicable Rate times
      the
      actual daily amount by which the Aggregate Commitments exceed the sum of
      (i) the Outstanding Amount of Loans and (ii) the Outstanding Amount of
      L/C Obligations. The Commitment Fee shall accrue at all times during the
      Availability Period, including at any time during which one or more of the
      conditions in Article IV
      is not
      met, and shall be due and payable quarterly in arrears on the last Business
      Day
      of each March, June, September and December, commencing with the first such
      date
      to occur after the Closing Date, and on the Maturity Date. The Commitment Fee
      shall be calculated quarterly in arrears, and if there is any change in the
      Applicable Rate during any quarter, the actual daily amount shall be computed
      and multiplied by the Applicable Rate separately for each period during such
      quarter that such Applicable Rate was in effect. For purposes of computation
      of
      the Commitment Fee, Swing Line Loans shall not be counted toward or considered
      usage of the Aggregate Commitments.

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    (b) Other
      Fees.

     

    (i) The
      Borrower shall pay to the Arranger and the Administrative Agent for their own
      respective accounts fees in the amounts and at the times specified in the Fee
      Letter. Such fees shall be fully earned when paid and shall not be refundable
      for any reason whatsoever.

     

    (ii) The
      Borrower shall pay to the Lenders such fees as shall have been separately agreed
      upon in writing in the amounts and at the times so specified. Such fees shall
      be
      fully earned when paid and shall not be refundable for any reason
      whatsoever.

     

    2.10 Computation
      of Interest and Fees; Retroactive Adjustments of Applicable
      Rate. 

     

    (a) All
      computations of interest for Base Rate Loans when the Base Rate is determined
      by
      Bank of America’s “prime rate” shall be made on the basis of a year of 365 or
      366 days, as the case may be, and actual days elapsed. Subject to Section 10.09,
      all
      other computations of fees and interest shall be made on the basis of a 360-day
      year and actual days elapsed (which results in more fees or interest, as
      applicable, being paid than if computed on the basis of a 365-day year).
      Interest shall accrue on each Loan for the day on which the Loan is made, and
      shall not accrue on a Loan, or any portion thereof, for the day on which the
      Loan or such portion is paid, provided
      that any
      Loan that is repaid on the same day on which it is made shall, subject to
Section 2.12(a),
      bear
      interest for one day. Each determination by the Administrative Agent of an
      interest rate or fee hereunder shall be conclusive and binding for all purposes,
      absent manifest error.

     

    (b) If,
      as a
      result of any restatement of or other adjustment to the financial statements
      of
      the Borrower or for any other reason, the Borrower or the Lenders determine
      that
      (i) the Leverage Ratio as calculated by the Borrower as of any applicable
      date was inaccurate and (ii) a proper calculation of the Leverage Ratio
      would have resulted in higher pricing for such period, the Borrower shall
      immediately be obligated to pay to the Administrative Agent for the account
      of
      the Applicable Lenders, promptly on demand by the Administrative Agent (or,
      after the occurrence of an actual or deemed entry of an order for relief with
      respect to the Borrower under the Bankruptcy Code of the United States,
      automatically and without further action by the Administrative Agent, any Lender
      or the L/C Issuer), an amount equal to the excess of the amount of interest
      and
      fees that should have been paid for such period over the amount of interest
      and
      fees actually paid for such period. This paragraph shall not limit the rights
      of
      the Administrative Agent, any Lender or the L/C Issuer, as the case may be,
      under Section 2.03(c)(iii),
      2.03(i)
      or
2.08(b)
      or under
Article VIII.
      The
      Borrower’s obligations under this paragraph shall survive the termination of the
      Aggregate Commitments and the repayment of all other Obligations
      hereunder.

     

    2.11 Evidence
      of Debt.

     

    (a) The
      Credit Extensions made by each Lender shall be evidenced by one or more accounts
      or records maintained by such Lender and by the Administrative Agent in the
      ordinary course of business. The accounts or records maintained by the
      Administrative Agent and each Lender shall be conclusive absent manifest error
      of the amount of the Credit Extensions made by the Lenders to the 

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        
Borrower
        and the interest and payments thereon. Any failure to so record or any error
        in
        doing so shall not, however, limit or otherwise affect the obligation of
        the
        Borrower hereunder to pay any amount owing with respect to the Obligations.
        In
        the event of any conflict between the accounts and records maintained by
        any
        Lender and the accounts and records of the Administrative Agent in respect
        of
        such matters, the accounts and records of the Administrative Agent shall
        control
        in the absence of manifest error. Upon the request of any Lender made through
        the Administrative Agent, the Borrower shall execute and deliver to such
        Lender
        (through the Administrative Agent) a Revolving Loan Note, and/or Swing Line
        Note, as applicable, which shall evidence such Lender’s Loans in addition to
        such accounts or records. Each Lender may attach schedules to its Notes and
        endorse thereon the date, Type (if applicable), amount and maturity of its
        Loans
        and payments with respect thereto.

    

     

    (b) In
      addition to the accounts and records referred to in subsection (a), each
      Lender and the Administrative Agent shall maintain in accordance with its usual
      practice accounts or records evidencing the purchases and sales by such Lender
      of participations in Letters of Credit and Swing Line Loans. In the event of
      any
      conflict between the accounts and records maintained by the Administrative
      Agent
      and the accounts and records of any Lender in respect of such matters, the
      accounts and records of the Administrative Agent shall control in the absence
      of
      manifest error.

     

    2.12 Payments
      Generally; Administrative Agent’s Clawback.

     

    (a) General.
      All
      payments to be made by the Borrower shall be made without condition or deduction
      for any counterclaim, defense, recoupment or setoff. Except as otherwise
      expressly provided herein, all payments by the Borrower hereunder shall be
      made
      to the Administrative Agent, for the account of the respective Lenders to which
      such payment is owed, at the Administrative Agent’s
      Office
      in Dollars and in immediately available funds not later than 1:00 p.m. on
      the date specified herein. The Administrative Agent will promptly distribute
      to
      each Lender its Applicable Percentage (or other applicable share as provided
      herein) of such payment in like funds as received by wire transfer to such
      Lender’s Lending Office. All payments received by the Administrative Agent after
      1:00 p.m. shall be deemed received on the next succeeding Business Day and
      any applicable interest or fee shall continue to accrue. If any payment to
      be
      made by the Borrower shall come due on a day other than a Business Day, payment
      shall be made on the next following Business Day, and such extension of time
      shall be reflected in computing interest or fees, as the case may
      be.

     

    (b) (2) Funding
      by Lenders; Presumption by Administrative Agent.
      Unless
      the Administrative Agent shall have received notice from a Lender prior to
      the
      proposed date of any Borrowing of Eurodollar Rate Loans (or, in the case of
      any
      Borrowing of Base Rate Loans, prior to 12:00 noon on the date of such
      Borrowing) that such Lender will not make available to the Administrative Agent
      such Lender’s share of such Borrowing, the Administrative Agent may assume that
      such Lender has made such share available on such date in accordance with
Section 2.02
      (or, in
      the case of a Borrowing of Base Rate Loans, that such Lender has made such
      share
      available in accordance with and at the time required by Section 2.02)
      and
      may, in reliance upon such assumption, make available 

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

      to
        the
        Borrower a corresponding amount. In such event, if a Lender has not in fact
        made
        its share of the applicable Borrowing available to the Administrative Agent,
        then the applicable Lender and the Borrower severally agree to pay to the
        Administrative Agent forthwith on demand such corresponding amount in
        immediately available funds with interest thereon, for each day from and
        including the date such amount is made available to the Borrower to but
        excluding the date of payment to the Administrative Agent, at (A) in the
        case of a payment to be made by such Lender, the greater of the Federal Funds
        Rate and a rate determined by the Administrative Agent in accordance with
        banking industry rules on interbank compensation, plus any administrative,
        processing or similar fees customarily charged by the Administrative Agent
        in
        connection with the foregoing, and (B) in the case of a payment to be made
        by the Borrower, the interest rate applicable to Base Rate Loans. If the
        Borrower and such Lender shall pay such interest to the Administrative Agent
        for
        the same or an overlapping period, the Administrative Agent shall promptly
        remit
        to the Borrower the amount of such interest paid by the Borrower for such
        period. If such Lender pays its share of the applicable Borrowing to the
        Administrative Agent, then the amount so paid shall constitute such Lender’s
        Loan included in such Borrowing. Any payment by the Borrower shall be without
        prejudice to any claim the Borrower may have against a Lender that shall
        have
        failed to make such payment to the Administrative Agent.

    

     

    (ii) Payments
      by Borrower; Presumptions by Administrative Agent.
      Unless
      the Administrative Agent shall have received notice from the Borrower prior
      to
      the date on which any payment is due to the Administrative Agent for the account
      of the Lenders or the L/C Issuer hereunder that the Borrower will not make
      such
      payment, the Administrative Agent may assume that the Borrower has made such
      payment on such date in accordance herewith and may, in reliance upon such
      assumption, distribute to the Lenders or the L/C Issuer, as the case may be,
      the
      amount due. In such event, if the Borrower has not in fact made such payment,
      then each of the Lenders or the L/C Issuer, as the case may be, severally agrees
      to repay to the Administrative Agent forthwith on demand the amount so
      distributed to such Lender or the L/C Issuer, in immediately available funds
      with interest thereon, for each day from and including the date such amount
      is
      distributed to it to but excluding the date of payment to the Administrative
      Agent, at the greater of the Federal Funds Rate and a rate determined by the
      Administrative Agent in accordance with banking industry rules on interbank
      compensation.

     

    A
      notice
      of the Administrative Agent to any Lender or the Borrower with respect to any
      amount owing under this subsection (b) shall be conclusive, absent manifest
      error.

     

    (c) Failure
      to Satisfy Conditions Precedent.
      If any
      Lender makes available to the Administrative Agent funds for any Loan to be
      made
      by such Lender as provided in the foregoing provisions of this Article II,
      and
      such funds are not made available to the Borrower by the Administrative Agent
      because the conditions to the applicable Credit Extension set forth in
Article IV
      are not
      satisfied or waived in accordance with the terms hereof, the Administrative
      Agent shall return such funds (in like funds as received from such Lender)
      to
      such Lender, without interest.

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

    (d) Obligations
      of Lenders Several.
      The
      obligations of the Lenders hereunder to make Loans, to fund participations
      in
      Letters of Credit and Swing Line Loans and to make payments pursuant to
Section 10.04(c)
      are
      several and not joint. The failure of any Lender to make any Loan, to fund
      any
      such participation or to make any payment under Section 10.04(c)
      on any
      date required hereunder shall not relieve any other Lender of its corresponding
      obligation to do so on such date, and no Lender shall be responsible for the
      failure of any other Lender to so make its Loan, to purchase its participation
      or to make its payment under Section 10.04(c).

     

    (e) Funding
      Source.
      Nothing
      herein shall be deemed to obligate any Lender to obtain the funds for any Loan
      in any particular place or manner or to constitute a representation by any
      Lender that it has obtained or will obtain the funds for any Loan in any
      particular place or manner.

     

    2.13 Sharing
      of Payments by Lenders. If
      any
      Lender shall, by exercising any right of setoff or counterclaim or otherwise,
      obtain payment in respect of any principal of or interest on any of the Loans
      made by it, or the participations in L/C Obligations or in Swing Line Loans
      held
      by it resulting in such Lender’s receiving payment of a proportion of the
      aggregate amount of such Loans or participations and accrued interest thereon
      greater than its pro rata
      share
      thereof as provided herein, then the Lender receiving such greater proportion
      shall (a) notify the Administrative Agent of such fact, and
      (b) purchase (for cash at face value) participations in the Loans and
      subparticipations in L/C Obligations and Swing Line Loans of the other Lenders,
      or make such other adjustments as shall be equitable, so that the benefit of
      all
      such payments shall be shared by the Lenders ratably in accordance with the
      aggregate amount of principal of and accrued interest on their respective Loans
      and other amounts owing them, provided
      that:

     

    (i) if
      any
      such participations or subparticipations are purchased and all or any portion
      of
      the payment giving rise thereto is recovered, such participations or
      subparticipations shall be rescinded and the purchase price restored to the
      extent of such recovery, without interest; and

     

    (ii) the
      provisions of this Section shall not be construed to apply to (x) any
      payment made by the Borrower pursuant to and in accordance with the express
      terms of this Agreement or (y) any payment obtained by a Lender as
      consideration for the assignment of or sale of a participation in any of its
      Loans or subparticipations in L/C Obligations or Swing Line Loans to any
      assignee or participant, other than to the Borrower or any Subsidiary thereof
      (as to which the provisions of this Section shall apply).

     

    Each
      Loan
      Party consents to the foregoing and agrees, to the extent it may effectively
      do
      so under Applicable Law, that any Lender acquiring a participation pursuant
      to
      the foregoing arrangements may exercise against such Loan Party rights of setoff
      and counterclaim with respect to such participation as fully as if such Lender
      were a direct creditor of such Loan Party in the amount of such
      participation.

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

    2.14 Increase
      in Commitments.

     

    (a) Request
      for Increase.
      Provided there exists no Default, upon notice to the Administrative Agent (which
      shall promptly notify the Lenders), the Borrower may from time to time, request
      an increase in the Aggregate Commitments by an amount (for all such requests)
      not exceeding $100,000,000; provided
      that
      (i) any such request for an increase shall be in a minimum amount of
      $25,000,000, and (ii) the Borrower may make a maximum of three such
      requests. At the time of sending such notice, the Borrower (in consultation
      with
      the Administrative Agent) shall specify the time period within which each Lender
      is requested to respond (which shall in no event be less than ten Business
      Days
      from the date of delivery of such notice to the Lenders).

     

    (b) Lender
      Elections to Increase.
      Each
      Lender shall notify the Administrative Agent within such time period whether
      or
      not it agrees to increase its Commitment and, if so, whether by an amount equal
      to, greater than, or less than its Applicable Percentage of such requested
      increase. Any Lender not responding within such time period shall be deemed
      to
      have declined to increase its Commitment.

     

    (c) Notification
      by Administrative Agent; Additional Lenders.
      The
      Administrative Agent shall notify the Borrower and each Lender of the Lenders’
responses to each request made hereunder. To achieve the full amount of a
      requested increase and subject to the approval of the Administrative Agent,
      the
      L/C Issuer and the Swing Line Lender (which approvals shall not be unreasonably
      withheld), the Borrower may also invite additional Eligible Assignees to become
      Lenders pursuant to a joinder agreement in form and substance satisfactory
      to
      the Administrative Agent and its counsel.

     

    (d) Effective
      Date and Allocations.
      If the
      Aggregate Commitments are increased in accordance with this Section, the
      Administrative Agent and the Borrower shall determine the effective date (the
      “Increase
      Effective Date”)
      and
      the final allocation of such increase. The Administrative Agent shall promptly
      notify the Borrower and the Lenders of the final allocation of such increase
      and
      the Increase Effective Date.

     

    (e) Conditions
      to Effectiveness of Increase.
      As a
      condition precedent to such increase, the Borrower shall deliver to the
      Administrative Agent a certificate of each Loan Party dated as of the Increase
      Effective Date (in sufficient copies for each Lender) signed by a Responsible
      Officer of such Loan Party (i) certifying and attaching the resolutions
      adopted by such Loan Party approving or consenting to such increase, and
      (ii) in the case of the Borrower, certifying that, before and after giving
      effect to such increase, (A) the representations and warranties contained
      in Article V
      and the
      other Loan Documents are true and correct on and as of the Increase Effective
      Date, except to the extent that such representations and warranties specifically
      refer to an earlier date, in which case they are true and correct as of such
      earlier date, and except that for purposes of this Section 2.14,
      the
      representations and warranties contained in subsection (a) of Section 5.05
      shall be
      deemed to refer to the most recent statements furnished pursuant to
      clause (a) of Section 6.01,
      and
      (B) no Default exists. The Borrower shall prepay any Revolving Loans
      outstanding on the Increase Effective Date (and pay any additional amounts
      required pursuant to Section 3.05)
      to the
      extent necessary to keep the outstanding Revolving Loans ratable with any
      revised Applicable Percentages arising from any nonratable increase in the
      Commitments under this Section.

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

    (f) Conflicting
      Provisions.
      This
      Section shall supersede any provisions in Sections 2.13
      or
10.01
      to the
      contrary.

     

    ARTICLE
      III.

    TAXES,
      YIELD PROTECTION AND ILLEGALITY

     

    3.01 Taxes.

     

    (a) Payments
      Free of Taxes.
      Any and
      all payments by or on account of any obligation of the Borrower hereunder or
      under any other Loan Document shall be made free and clear of and without
      reduction or withholding for any Indemnified Taxes or Other Taxes, provided
      that
      if the Borrower shall be required by Applicable Law to deduct any Indemnified
      Taxes (including any Other Taxes) from such payments, then (i) the sum
      payable shall be increased as necessary so that after making all required
      deductions (including deductions applicable to additional sums payable under
      this Section) the Administrative Agent, Lender or L/C Issuer, as the case may
      be, receives an amount equal to the sum it would have received had no such
      deductions been made, (ii) the Borrower shall make such deductions and
      (iii) the Borrower shall timely pay the full amount deducted to the
      relevant Governmental Authority in accordance with Applicable Law.

     

    (b) Payment
      of Other Taxes by the Borrower.
      Without
      limiting the provisions of subsection (a) above, the Borrower shall timely
      pay
      any Other Taxes to the relevant Governmental Authority in accordance with
      Applicable Law.

     

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

     

    (d) Evidence
      of Payments.
      As soon
      as practicable after any payment of Indemnified Taxes or Other Taxes by the
      Borrower to a Governmental Authority, the Borrower shall deliver to the
      Administrative Agent the original or a certified copy of a receipt issued by
      such Governmental Authority evidencing such payment, a copy of the return
      reporting such payment or other evidence of such payment reasonably satisfactory
      to the Administrative Agent.

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

    (e) Status
      of Lenders.
      Any
      Foreign Lender that is entitled to an exemption from or reduction of withholding
      tax under the law of the jurisdiction in which the Borrower is resident for
      tax
      purposes, or any treaty to which such jurisdiction is a party, with respect
      to
      payments hereunder or under any other Loan Document shall deliver to the
      Borrower (with a copy to the Administrative Agent), at the time or times
      prescribed by Applicable Law or reasonably requested by the Borrower or the
      Administrative Agent, such properly completed and executed documentation
      prescribed by Applicable Law as will permit such payments to be made without
      withholding or at a reduced rate of withholding. In addition, any Lender, if
      requested by the Borrower or the Administrative Agent, shall deliver such other
      documentation prescribed by Applicable Law or reasonably requested by the
      Borrower or the Administrative Agent as will enable the Borrower or the
      Administrative Agent to determine whether or not such Lender is subject to
      backup withholding or information reporting requirements.

     

    Without
      limiting the generality of the foregoing, in the event that the Borrower is
      resident for tax purposes in the United States, any Foreign Lender shall deliver
      to the Borrower and the Administrative Agent (in such number of copies as shall
      be requested by the recipient) on or prior to the date on which such Foreign
      Lender becomes a Lender under this Agreement (and from time to time thereafter
      upon the request of the Borrower or the Administrative Agent, but only if such
      Foreign Lender is legally entitled to do so), whichever of the following is
      applicable:

     

    (i) duly
      completed copies of Internal Revenue Service Form W-8BEN claiming
      eligibility for benefits of an income tax treaty to which the United States
      is a
      party,

     

    (ii) duly
      completed copies of Internal Revenue Service Form W-8ECI,

     

    (iii) in
      the
      case of a Foreign Lender claiming the benefits of the exemption for portfolio
      interest under section 881(c) of the Code, (x) a certificate to the
      effect that such Foreign Lender is not (A) a “bank” within the meaning of
      section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of
      the Borrower within the meaning of section 881(c)(3)(B) of the Code, or
      (C) a “controlled foreign corporation” described in
      section 881(c)(3)(C) of the Code and (y) duly completed copies of
      Internal Revenue Service Form W-8BEN, or

     

    (iv) any
      other
      form prescribed by Applicable Law as a basis for claiming exemption from or
      a
      reduction in United States Federal withholding tax duly completed together
      with
      such supplementary documentation as may be prescribed by Applicable Law to
      permit the Borrower to determine the withholding or deduction required to be
      made.

     

    (f) Treatment
      of Certain Refunds.
      If the
      Administrative Agent, any Lender or the L/C Issuer determines, in its sole
      discretion, that it has received a refund of any Taxes or Other Taxes as to
      which it has been indemnified by the Borrower or with respect to which the
      Borrower has paid additional amounts pursuant to this Section, it 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 the Borrower under this Section
      with respect to the Taxes or Other Taxes giving rise to such refund), net of
      all
      out-of-pocket expenses of the 

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        
Administrative
        Agent, such Lender or the L/C Issuer, as the case may be, and without interest
        (other than any interest paid by the relevant Governmental Authority with
        respect to such refund), provided
        that the
        Borrower, upon the request of the Administrative Agent, such Lender or the
        L/C
        Issuer, agrees to repay the amount paid over to the Borrower (plus any
        penalties, interest or other charges imposed by the relevant Governmental
        Authority) to the Administrative Agent, such Lender or the L/C Issuer in
        the
        event the Administrative Agent, such Lender or the L/C Issuer is required
        to
        repay such refund to such Governmental Authority. This subsection shall not
        be
        construed to require the Administrative Agent, any Lender or the L/C Issuer
        to
        make available its tax returns (or any other information relating to its
        taxes
        that it deems confidential) to the Borrower or any other
        Person.

    

     

    3.02 Illegality.
      If any
      Lender determines that any Law has made it unlawful, or that any Governmental
      Authority has asserted that it is unlawful, for any Lender or its applicable
      Lending Office to make, maintain or fund Eurodollar Rate Loans, or to determine
      or charge interest rates based upon the Eurodollar Rate, or any Governmental
      Authority has imposed material restrictions on the authority of such Lender
      to
      purchase or sell, or to take deposits of, Dollars in the London interbank
      market, then, on notice thereof by such Lender to the Borrower through the
      Administrative Agent, any obligation of such Lender to make or continue
      Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate Loans
      shall be suspended until such Lender notifies the Administrative Agent and
      the
      Borrower that the circumstances giving rise to such determination no longer
      exist. Upon receipt of such notice, the Borrower shall, upon demand from such
      Lender (with a copy to the Administrative Agent), prepay or, if applicable,
      convert all Eurodollar Rate Loans of such Lender to Base Rate Loans, either
      on
      the last day of the Interest Period therefor, if such Lender may lawfully
      continue to maintain such Eurodollar Rate Loans to such day, or immediately,
      if
      such Lender may not lawfully continue to maintain such Eurodollar Rate Loans.
      Upon any such prepayment or conversion, the Borrower shall also pay accrued
      interest on the amount so prepaid or converted.

     

    3.03 Inability
      to Determine Rates.
      If the
      Required Lenders determine that for any reason in connection with any request
      for a Eurodollar Rate Loan or a conversion to or continuation thereof that
      (a) Dollar deposits are not being offered to banks in the London interbank
      eurodollar market for the applicable amount and Interest Period of such
      Eurodollar Rate Loan, (b) adequate and reasonable means do not exist for
      determining the Eurodollar Rate for any requested Interest Period with respect
      to a proposed Eurodollar Rate Loan, or (c) the Eurodollar Rate for any
      requested Interest Period with respect to a proposed Eurodollar Rate Loan does
      not adequately and fairly reflect the cost to such Lenders of funding such
      Loan,
      the Administrative Agent will promptly so notify the Borrower and each Lender.
      Thereafter, the obligation of the Lenders to make or maintain Eurodollar Rate
      Loans shall be suspended until the Administrative Agent (upon the instruction
      of
      the Required Lenders) revokes such notice. Upon receipt of such notice, the
      Borrower may revoke any pending request for a Borrowing of, conversion to or
      continuation of Eurodollar Rate Loans or, failing that, will be deemed to have
      converted such request into a request for a Borrowing of Base Rate Loans in
      the
      amount specified therein.

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

    3.04 Increased
      Costs; Reserves on Eurodollar Rate Loans.

     

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

     

    (i) impose,
      modify or deem applicable any reserve, 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 (except
      any
      reserve requirement contemplated by Section 3.04(e))
      or the
      L/C Issuer;

     

    (ii) subject
      any Lender or the L/C Issuer to any tax of any kind whatsoever with respect
      to
      this Agreement, any Letter of Credit, any participation in a Letter of Credit
      or
      any Eurodollar Rate Loan made by it, or change the basis of taxation of payments
      to such Lender or the L/C Issuer in respect thereof (except for Indemnified
      Taxes or Other Taxes covered by Section 3.01
      and the
      imposition of, or any change in the rate of, any Excluded Tax payable by such
      Lender or the L/C Issuer); or

     

    (iii) impose
      on
      any Lender or the L/C Issuer or the London interbank market any other condition,
      cost or expense affecting this Agreement or Eurodollar Rate Loans made by such
      Lender or any Letter of Credit or participation therein;

     

    and
      the
      result of any of the foregoing shall be to increase the cost to such Lender
      of
      making or maintaining any Eurodollar Rate Loan (or of maintaining its obligation
      to make any such Loan), or to increase the cost to such Lender or the L/C Issuer
      of participating in, issuing or maintaining any Letter of Credit (or of
      maintaining its obligation to participate in or to issue any Letter of Credit),
      or to reduce the amount of any sum received or receivable by such Lender or
      the
      L/C Issuer hereunder (whether of principal, interest or any other amount) then,
      upon request of such Lender or the L/C Issuer, the Borrower will pay to such
      Lender or the L/C Issuer, as the case may be, such additional amount or amounts
      as will compensate such Lender or the L/C Issuer, as the case may be, for such
      additional costs incurred or reduction suffered.

     

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

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

    (c) Certificates
      for Reimbursement.
      A
      certificate of a Lender or the L/C Issuer setting forth the amount or amounts
      necessary to compensate such Lender or the L/C Issuer or its holding company,
      as
      the case may be, as specified in subsection (a) or (b) of this Section and
      delivered to the Borrower shall be conclusive absent manifest error. The
      Borrower shall pay such Lender or the L/C Issuer, as the case may be, the amount
      shown as due on any such certificate within 10 days after receipt
      thereof.

     

    (d) Delay
      in Requests.
      Failure
      or delay on the part of any Lender or the L/C Issuer to demand compensation
      pursuant to the foregoing provisions of this Section shall not constitute a
      waiver of such Lender’s or the L/C Issuer’s right to demand such compensation,
provided
      that the
      Borrower shall not be required to compensate a Lender or the L/C Issuer pursuant
      to the foregoing provisions of this Section for any increased costs incurred
      or
      reductions suffered more than nine months prior to the date that such Lender
      or
      the L/C Issuer, as the case may be, notifies the Borrower of the Change in
      Law
      giving rise to such increased costs or reductions and of such Lender’s or the
      L/C Issuer’s intention to claim compensation therefor (except that, if the
      Change in Law giving rise to such increased costs or reductions is retroactive,
      then the nine-month period referred to above shall be extended to include the
      period of retroactive effect thereof).

     

    (e) Reserves
      on Eurodollar Rate Loans.
      The
      Borrower shall pay to each Lender, as long as such Lender shall be required
      to
      maintain reserves with respect to liabilities or assets consisting of or
      including Eurocurrency funds or deposits (currently known as “Eurocurrency
      liabilities”), additional interest on the unpaid principal amount of each
      Eurodollar Rate Loan equal to the actual costs of such reserves allocated to
      such Loan by such Lender (as determined by such Lender in good faith, which
      determination shall be conclusive), which shall be due and payable on each
      date
      on which interest is payable on such Loan, provided
      the
      Borrower shall have received at least 10 days’ prior notice (with a copy to the
      Administrative Agent) of such additional interest from such Lender. If a Lender
      fails to give notice 10 days prior to the relevant Interest Payment Date, such
      additional interest shall be due and payable 10 days from receipt of such
      notice.

     

    3.05 Compensation
      for Losses.
      Upon
      demand of any Lender (with a copy to the Administrative Agent) from time to
      time, the Borrower shall promptly compensate such Lender for and hold such
      Lender harmless from any loss, cost or expense incurred by it as a result
      of:

     

    (a) any
      continuation, conversion, payment or prepayment of any Loan other than a Base
      Rate Loan on a day other than the last day of the Interest Period for such
      Loan
      (whether voluntary, mandatory, automatic, by reason of acceleration, or
      otherwise);

     

    (b) any
      failure by the Borrower (for a reason other than the failure of such Lender
      to
      make a Loan) to prepay, borrow, continue or convert any Loan other than a Base
      Rate Loan on the date or in the amount notified by the Borrower; or

     

    (c) any
      assignment of a Eurodollar Rate Loan on a day other than the last day of the
      Interest Period therefor as a result of a request by the Borrower pursuant
      to
Section 10.13;

     

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

    including
      any loss of anticipated profits and any loss or expense arising from the
      liquidation or reemployment of funds obtained by it to maintain such Loan or
      from fees payable to terminate the deposits from which such funds were obtained.
      The Borrower shall also pay any customary administrative fees charged by such
      Lender in connection with the foregoing.

     

    For
      purposes of calculating amounts payable by the Borrower to the Lenders under
      this Section 3.05,
      each
      Lender shall be deemed to have funded each Eurodollar Rate Loan made by it
      at
      the Eurodollar Rate for such Loan by a matching deposit or other borrowing
      in
      the London interbank eurodollar market for a comparable amount and for a
      comparable period, whether or not such Eurodollar Rate Loan was in fact so
      funded.

     

    3.06 Mitigation
      Obligations; Replacement of Lenders.

     

    (a) Designation
      of a Different Lending Office.
      If any
      Lender requests compensation under Section 3.04,
      or the
      Borrower is required to pay any additional amount to any Lender or any
      Governmental Authority for the account of any Lender pursuant to Section 3.01,
      or if
      any Lender gives a notice pursuant to Section 3.02,
      then
      such Lender shall use reasonable efforts to designate a different Lending Office
      for funding or booking its Loans hereunder or to assign its rights and
      obligations hereunder to another of its offices, branches or affiliates, if,
      in
      the judgment of such Lender, such designation or assignment (i) would
      eliminate or reduce amounts payable pursuant to Section 3.01
      or
3.04,
      as the
      case may be, in the future, or eliminate the need for the notice pursuant to
      Section 3.02,
      as
      applicable, and (ii) in each case, would not subject such Lender to any
      unreimbursed cost or expense and would not otherwise be disadvantageous to
      such
      Lender. The Borrower hereby agrees to pay all reasonable costs and expenses
      incurred by any Lender in connection with any such designation or
      assignment.

     

    (b) Replacement
      of Lenders.
      If any
      Lender requests compensation under Section 3.04,
      or if
      the Borrower is required to pay any additional amount to any Lender or any
      Governmental Authority for the account of any Lender pursuant to Section 3.01,
      or if
      any Lender gives a notice pursuant to Section 3.02,
      the
      Borrower may replace such Lender in accordance with Section 10.13.

     

    3.07 Survival.
      All of
      the Borrower’s
      obligations under this Article III
      shall
      survive termination of the Aggregate Commitments and repayment of all other
      Obligations hereunder.

     

    ARTICLE
      IV.

    CONDITIONS
      PRECEDENT TO CREDIT EXTENSIONS

     

    4.01 Conditions
      of Initial Credit Extension.
      The
      obligation of the L/C Issuer and each Lender to make its initial Credit
      Extension hereunder is subject to satisfaction of the following conditions
      precedent:

     

    (a) The
      Administrative Agent’s receipt of the following, each of which shall be
      originals or telecopies (followed promptly by originals) unless otherwise
      specified, each properly executed by a Responsible Officer of the signing Loan
      Party, each dated the Closing Date (or, in the case of certificates of
      governmental officials, a recent date before the Closing Date) and each in
      form
      and substance satisfactory to the Administrative Agent and each of the
      Lenders:

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

    (i) executed
      counterparts of this Agreement, and the Guaranty, sufficient in number for
      distribution to the Administrative Agent, each Lender and the
      Borrower;

     

    (ii) copies
      of
      all UCC searches of the Borrower and its Domestic Subsidiaries, each such search
      showing no Liens except Permitted Liens;

     

    (iii) Revolving
      Loan Notes executed by the Borrower in favor of each Lender requesting a
      Revolving Loan Note;

     

    (iv) a
      Swing
      Line Note executed by the Borrower in favor of the Swing Line
      Lender;

     

    (v) such
      certificates of resolutions or other action, incumbency certificates and/or
      other certificates of Responsible Officers of each Loan Party as the
      Administrative Agent may require evidencing the identity, authority and capacity
      of each Responsible Officer thereof authorized to act as a Responsible Officer
      in connection with this Agreement and the other Loan Documents to which such
      Loan Party is a party;

     

    (vi) such
      documents and certifications as the Administrative Agent may reasonably require
      to evidence that each Loan Party is duly organized or formed, and that each
      Loan
      Party is validly existing, in good standing and qualified to engage in business
      in each jurisdiction where its ownership, lease or operation of properties
      or
      the conduct of its business requires such qualification, except to the extent
      that failure to do so could not reasonably be expected to have a Material
      Adverse Effect;

     

    (vii) favorable
      opinions of Thompson & Knight L.L.P., and general counsel to the Loan
      Parties, addressed to the Administrative Agent and each Lender, as to the
      matters set forth in Exhibit D
      and such
      other matters concerning the Loan Parties and the Loan Documents as the
      Administrative Agent may reasonably request;

     

    (viii) a
      certificate of a Responsible Officer of each Loan Party either
      (A) attaching copies of all consents, licenses and approvals required in
      connection with the execution, delivery and performance by such Loan Party
      and
      the validity against such Loan Party of the Loan Documents to which it is a
      party, and such consents, licenses and approvals shall be in full force and
      effect, or (B) stating that no such consents, licenses or approvals are so
      required;

     

    (ix) a
      certificate signed by a Responsible Officer of the Borrower certifying
      (A) that the conditions specified in Sections 4.02(a)
      and
(b)
      have
      been satisfied, and (B) that there has been no event or circumstance since
      the date of the Audited Financial Statements that has had or could be reasonably
      expected to have, either individually or in the aggregate, a Material Adverse
      Effect;

     

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

    (x) a
      solvency certificate signed by the Vice President and Treasurer of the Borrower
      in form and substance satisfactory to the Administrative Agent; and

     

    (xi) such
      other assurances, certificates, documents, consents or opinions as the
      Administrative Agent, the L/C Issuer, the Swing Line Lender or the Required
      Lenders reasonably may require.

     

    (b) Any
      fees
      required to be paid on or before the Closing Date shall have been
      paid.

     

    (c) Unless
      waived by the Administrative Agent, the Borrower shall have paid all fees,
      charges and disbursements of counsel to the Administrative Agent to the extent
      invoiced prior to or on the Closing Date, plus such additional amounts of such
      fees, charges and disbursements as shall constitute its reasonable estimate
      of
      such fees, charges and disbursements incurred or to be incurred by it through
      the closing proceedings (provided that such estimate shall not thereafter
      preclude a final settling of accounts between the Borrower and the
      Administrative Agent).

     

    (d) There
      shall not have occurred a material adverse change (x) in the operations,
      business, properties, liabilities (actual or contingent), or condition
      (financial or otherwise) of the Borrower and its Subsidiaries, taken as a whole,
      since May 31, 2007 or (y) in the facts and information regarding such
      entities represented to date.

     

    (e) The
      initial Credit Extension shall have occurred on or before August 31,
      2007.

     

    Without
      limiting the generality of the last paragraph of Section 9.03
      or the
      provisions of Section 9.04,
      for
      purposes of determining compliance with the conditions specified in this
Section 4.01,
      each
      Lender that has signed this Agreement shall be deemed to have consented to,
      approved or accepted or to be satisfied with, each document or other matter
      required thereunder to be consented to or approved by or acceptable or
      satisfactory to a Lender unless the Administrative Agent shall have received
      notice from such Lender prior to the proposed Closing Date specifying its
      objection thereto.

     

    4.02 Conditions
      to all Credit Extensions.
      The
      obligation of each Lender to honor any Request for Credit Extension (other
      than
      a Revolving Loan Notice requesting only a conversion of Revolving Loans to
      the
      other Type, or a continuation of Eurodollar Rate Loans) is subject to the
      following conditions precedent:

     

    (a) The
      representations and warranties of the Borrower and each other Loan Party
      contained in Article V
      or any
      other Loan Document, or which are contained in any document furnished at any
      time under or in connection herewith or therewith, shall be true and correct
      on
      and as of the date of such Credit Extension, except to the extent that such
      representations and warranties specifically refer to an earlier date, in which
      case they shall be true and correct as of such earlier date, and except that
      for
      purposes of this Section 4.02,
      the
      representations and warranties contained in subsection (a) of Section 5.05
      shall be
      deemed to refer to the most recent statements furnished pursuant to
      clause (a) of Section 6.01.

     

    (b) No
      Default shall exist, or would result from such proposed Credit Extension or
      from
      the application of the proceeds thereof.

     

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

    (c) The
      Administrative Agent and, if applicable, the L/C Issuer or the Swing Line Lender
      shall have received a Request for Credit Extension in accordance with the
      requirements hereof.

     

    Each
      Request for Credit Extension (other than a Revolving Loan Notice requesting
      only
      a conversion of Revolving Loans to the other Type or a continuation of
      Eurodollar Rate Loans) submitted by the Borrower shall be deemed to be a
      representation and warranty that the conditions specified in Sections 4.02(a)
      and
(b)
      have
      been satisfied on and as of the date of the applicable Credit
      Extension.

     

    Upon
      satisfaction of all the conditions specified in Sections 4.01
      and
4.02,
      the
      Existing Credit Agreement will be amended and restated by this Agreement (with
      all loans outstanding thereunder being refinanced by the initial Credit
      Extension hereunder) and all Liens securing obligations under the Existing
      Credit Agreement shall be automatically terminated and released. Promptly
      thereafter, the Administrative Agent will terminate and release of record all
      financing statements and other Lien filings heretofore filed or recorded in
      connection with the Existing Credit Agreement.

     

    ARTICLE
      V.

    REPRESENTATIONS
      AND WARRANTIES

     

    The
      Borrower represents and warrants to the Administrative Agent and the Lenders
      that:

     

    5.01 Existence,
      Qualification and Power; Compliance with Laws.
      The
      Borrower and each Subsidiary (a) is duly organized or formed, validly
      existing and in good standing under the Laws of the jurisdiction of its
      incorporation or organization, (b) has all requisite power and authority
      and all requisite governmental licenses, authorizations, consents and approvals
      to (i) own or lease its assets and carry on its business and
      (ii) execute, deliver and perform its obligations under the Loan Documents
      to which it is a party, (c) is duly qualified and is licensed and in good
      standing under the Laws of each jurisdiction where its ownership, lease or
      operation of properties or the conduct of its business requires such
      qualification or license, and (d) is in compliance with all Laws; except in
      each case referred to in clause (b)(i), (c) or (d), to the extent that
      failure to do so could not reasonably be expected to have a Material Adverse
      Effect.

     

    5.02 Authorization;
      No Contravention.
      The
      execution, delivery and performance by each Loan Party of each Loan Document
      to
      which such Person is party, have been duly authorized by all necessary corporate
      or other organizational action, and do not and will not (a) contravene the
      terms of any of such Person’s Organization Documents; (b) conflict with or
      result in any breach or contravention of, or the creation of any Lien under,
      or
      require any payment to be made under (i) any Contractual Obligation to
      which such Person is a party or affecting such Person or the properties of
      such
      Person or any of its Subsidiaries or (ii) any order, injunction, writ or
      decree of any Governmental Authority or any arbitral award to which such Person
      or its property is subject; or (c) violate any Law. The Borrower and each
      Subsidiary is in compliance with all Contractual Obligations referred to in
      clause (b)(i), except to the extent that failure to do so could not
      reasonably be expected to have a Material Adverse Effect.

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

    5.03 Governmental
      Authorization; Other Consents.
      No
      approval, consent, exemption, authorization, or other action by, or notice
      to,
      or filing with, any Governmental Authority or any other Person is necessary
      or
      required in connection with the execution, delivery or performance by, or
      enforcement against, any Loan Party of this Agreement or any other Loan
      Document.

     

    5.04 Binding
      Effect.
      This
      Agreement has been, and each other Loan Document, when delivered hereunder,
      will
      have been, duly executed and delivered by each Loan Party that is party thereto.
      This Agreement constitutes, and each other Loan Document when so delivered
      will
      constitute, a legal, valid and binding obligation of such Loan Party,
      enforceable against each Loan Party that is party thereto in accordance with
      its
      terms, except as limited by (a) Debtor Relief Laws and (b) the effect
      of general principles of equity whether applied by a court of Law or
      equity.

     

    5.05 Financial
      Statements; No Material Adverse Effect; No Internal Control
      Event.

     

    (a) The
      Audited Financial Statements (i) were prepared in accordance with GAAP
      consistently applied throughout the period covered thereby, except as otherwise
      expressly noted therein; (ii) fairly present the financial condition of the
      Borrower and its Subsidiaries as of the date thereof and their results of
      operations for the period covered thereby in accordance with GAAP consistently
      applied throughout the period covered thereby, except as otherwise expressly
      noted therein; and (iii) show all material consolidated indebtedness and
      other liabilities, direct or contingent, of the Borrower and its Subsidiaries
      as
      of the date thereof, including liabilities for taxes, material commitments
      and
      Debt, as and to the extent required to be reported in accordance with
      GAAP.

     

    (b) Since
      the
      date most recent financial statements furnished pursuant to clause (a) or
      (b) of Section 6.01
      (or,
      prior to the delivery of the first such financial statements, since the date
      of
      the Audited Financial Statements), there has been no event or circumstance
      (including, without limitation, an Internal Control Event), either individually
      or in the aggregate, that has had or could reasonably be expected to have a
      Material Adverse Effect.

     

    (c) The
      Borrower and its Subsidiaries have no Off-Balance Sheet
      Liabilities.

     

    5.06 Litigation.
      There
      are no actions, suits, proceedings, claims or disputes pending or, to the
      knowledge of the Borrower after due and diligent investigation, threatened
      or
      contemplated, at law, in equity, in arbitration or before any Governmental
      Authority, by or against the Borrower or any of its Subsidiaries or against
      any
      of their properties or revenues that (a) purport to affect or pertain to
      this Agreement or any other Loan Document, or any of the transactions
      contemplated hereby, or (b) either individually or in the aggregate, could
      reasonably be expected to have a Material Adverse Effect.

     

    5.07 No
      Default.
      Neither
      the Borrower nor any Subsidiary is in default under or with respect to any
      Contractual Obligation that could, either individually or in the aggregate,
      reasonably be expected to have a Material Adverse Effect. No Default has
      occurred and is continuing or would result from the consummation of the
      transactions contemplated by this Agreement or any other Loan
      Document.

     

    
      
        
        

      

      
        57

        
          

        

      

      
        
        

      

    

    5.08 Ownership
      of Property; Liens.
      Each of
      the Borrower and each Subsidiary has good record and marketable title in fee
      simple to, or valid leasehold interests in, all real property necessary or
      used
      in the ordinary conduct of its business, except for such defects in title as
      could not, individually or in the aggregate, reasonably be expected to have
      a
      Material Adverse Effect. The property of the Borrower and its Subsidiaries
      is subject to no Liens, other than Liens permitted by Section 7.01.

     

    5.09 Environmental
      Compliance. 

     

    (a) Permits,
      Etc.
      The
      Borrower and its Subsidiaries (i) have obtained all material Environmental
      Permits required by Governmental Authorities necessary for the ownership and
      operation of their respective properties and the conduct of their respective
      businesses, except for such Environmental Permits that could not, individually
      or in the aggregate, reasonably be expected to have a Material Adverse Effect;
      (ii) are in compliance with all terms and conditions of such Environmental
      Permits, if any, and with all other material requirements of applicable
      Environmental Laws, except where such failure to comply could not, individually
      or in the aggregate, reasonably be expected to have a Material Adverse Effect;
      (iii) have not received notice of any violation or alleged violation of any
      Environmental Law or Environmental Permit; and (iv) are not subject to any
      actual or contingent Environmental Liability, in each case in clauses (iii)
      and (iv) immediately preceding where the effect could individually or in the
      aggregate be reasonably expected to have a Material Adverse Effect.

     

    (b) Certain
      Liabilities.
      None of
      the present or, to the Borrower’s knowledge, previously owned or operated
      Properties of the Borrower or of any of its present or former Subsidiaries,
      wherever located, (i) has been placed on or proposed to be placed on the
      National Priorities List, the Comprehensive Environmental Response Compensation
      Liability Information System list, or their state or local analogs, or have
      been
      otherwise investigated, designated, listed or identified as a potential site
      for
      removal, remediation, cleanup, closure, restoration, reclamation, or other
      response activity under any Environmental Laws, except for any such Property
      with respect to which such event could not, individually or in the aggregate,
      reasonably be expected to have a Material Adverse Effect; (ii) is subject
      to a Lien, arising under or in connection with any Environmental Laws, that
      attaches to any revenues or to any Property owned or operated by the Borrower
      or
      any of its Subsidiaries, wherever located, which could individually or in the
      aggregate reasonably be expected to have a Material Adverse Effect; or
      (iii) has been the site of any Release of Hazardous Materials from present
      or past operations which has caused at the site or at any third party site
      any
      condition that has resulted in or could individually or in the aggregate
      reasonably be expected to result in the need for Response that would cause
      a
      Material Adverse Effect.

     

    (c) Certified
      Actions.
      Without
      limiting the foregoing, (i) all necessary notices have been properly filed,
      and no further action is required under current Environmental Law as to each
      Response or other restoration or remedial project taken by the Borrower, or
      its
      present or former Subsidiaries on any of their presently or formerly owned
      or
      operated Properties, except where the failure to do so could not 

     

    
      
        
        

      

      
        58

        
          

        

      

      
        
        

      

    

    individually
      or in the aggregate be reasonably expected to have a Material Adverse Effect
      and
      (ii) the present and future liability, if any, of the Borrower and its
      Subsidiaries which could reasonably be expected to arise in connection with
      requirements under Environmental Laws could not individually or in the aggregate
      be reasonably expected to have a Material Adverse Effect.

     

    5.10 Insurance.
      The
      properties of the Borrower and its Subsidiaries
      are insured with financially sound and reputable insurance companies not
      Affiliates of the Borrower, in such amounts, with such deductibles and covering
      such risks as are customarily carried by companies engaged in similar businesses
      and owning similar properties in localities where the Borrower or the applicable
      Subsidiary
      operates.

     

    5.11 Taxes.
      The
      Borrower and its Subsidiaries
      have filed all Federal, state and other material tax returns and reports
      required to be filed, and have paid all Federal, state and other material taxes
      shown on such returns and all other assessments, fees and other governmental
      charges levied or imposed upon them or their properties, income or assets
      otherwise due and payable, except those which are being contested in good faith
      by appropriate proceedings diligently conducted and for which adequate reserves
      have been provided in accordance with GAAP. There is no proposed tax assessment
      against the Borrower or any Subsidiary
      that would, if made, have a Material Adverse Effect. Other than the Tax Sharing
      and Indemnity Agreement between the Borrower and Chaparral Steel Company that
      was entered into in connection with the Spin-Off Transaction (as defined in
      the
      Existing Credit Agreement), neither the Borrower nor any Subsidiary is party
      to
      any tax sharing agreement with any party outside the Borrower’s consolidated
      group.

     

    5.12 ERISA
      Compliance.

     

    (a) Each
      Plan
      is in compliance with the applicable provisions of ERISA, the Code and other
      Federal or state Laws, except such noncompliance as could not, individually
      or
      in the aggregate, be reasonably expected to have a Material Adverse Effect.
      Each
      Plan that is intended to qualify under Section 401(a) of the Code has
      qualified in form and operation under such Section and, to the best knowledge
      of
      the Borrower, nothing has occurred which would prevent, or cause the loss of,
      such qualification. The Borrower and each ERISA Affiliate have made all required
      contributions to each Plan subject to Section 412 of the Code, and no
      application for a funding waiver or an extension of any amortization period
      pursuant to Section 412 of the Code has been made with respect to any
      Plan.

     

    (b) There
      are
      no pending or, to the best knowledge of the Borrower, threatened claims, actions
      or lawsuits, or action by any Governmental Authority, with respect to any Plan
      that could reasonably be expected to have a Material Adverse Effect. There
      has
      been no prohibited transaction or violation of the fiduciary responsibility
      rules with respect to any Plan that has resulted or could reasonably be expected
      to result in a Material Adverse Effect.

     

    (c) (i) No
      ERISA Event has occurred or is reasonably expected to occur that, individually
      or in the aggregate, could reasonably be expected to have a Material Adverse
      Effect; (ii) no Pension Plans have any Unfunded Pension Liability,
      individually or in the aggregate for all Pension Plans, in an amount which
      could
      reasonably be expected to have a Material Adverse Effect; (iii) neither the
      Borrower nor 

     

    
      
        
        

      

      
        59

        
          

        

      

      
        
        
any
        ERISA
        Affiliate has incurred, or reasonably expects to incur, any liability under
        Title IV of ERISA with respect to any Pension Plan (other than premiums due
        and not delinquent under Section 4007 of ERISA); (iv) neither the
        Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur,
        any liability (and no event has occurred which, with the giving of notice
        under
        Section 4219 of ERISA, would result in such liability) under
        Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and
        (v) neither the Borrower nor any ERISA Affiliate has engaged in a
        transaction that could be subject to Sections 4069 or 4212(c) of
        ERISA.

    

     

    5.13 Subsidiaries;
      Equity Interests.
      As of
      the Closing Date, the Borrower has no Subsidiaries other than those specifically
      disclosed in Part (a) of Schedule 5.13,
      and all
      of the outstanding Equity Interests in such Subsidiaries have been validly
      issued, are fully paid and nonassessable and are owned by a Loan Party in the
      amounts specified on Part (a) of Schedule 5.13
      free and
      clear of all Liens. As of the Closing Date, the Borrower has no equity
      investments in any other corporation or entity other than those specifically
      disclosed in Part (b) of Schedule 5.13.
      All of
      the outstanding Equity Interests in the Borrower have been validly issued,
      are
      fully paid and nonassessable.

     

    5.14 Margin
      Regulations; Investment Company Act.

     

    (a) The
      Borrower is not engaged and will not engage, principally or as one of its
      important activities, in the business of purchasing or carrying margin stock
      (within the meaning of Regulation U issued by the FRB), or extending credit
      for the purpose of purchasing or carrying margin stock. Following the
      application of the proceeds of each Borrowing or drawing under each Letter
      of
      Credit, not more than 25% of the value of the assets (either of the Borrower
      only or of the Borrower and its Subsidiaries on a consolidated basis) subject
      to
      the provisions of Section 7.01
      or
Section 7.05
      or
      subject to any restriction contained in any agreement or instrument between
      the
      Borrower and any Lender or any Affiliate of any Lender relating to Debt and
      within the scope of Section 8.01(e)
      will be
      margin stock.

     

    (b) None
      of
      the Borrower, any Person Controlling the Borrower, or any Subsidiary is or
      is
      required to be registered as an “investment company” under the Investment
      Company Act of 1940.

     

    5.15 Disclosure.
      The
      Borrower has disclosed to the Administrative Agent and the Lenders all
      agreements, instruments and corporate or other restrictions to which it or
      any
      of its Subsidiaries is subject, and all other matters known to it, that,
      individually or in the aggregate, could reasonably be expected to result in
      a
      Material Adverse Effect. No report, financial statement, certificate or other
      information furnished (whether in writing or orally) by or on behalf of any
      Loan
      Party to the Administrative Agent or any Lender in connection with the
      transactions contemplated hereby and the negotiation of this Agreement or
      delivered hereunder or under any other Loan Document (in each case, as modified
      or supplemented by other information so furnished) contains any material
      misstatement of fact or omits to state any material fact necessary to make
      the
      statements therein, in the light of the circumstances under which they were
      made
      and on the dates on which they were made, not misleading; provided
      that,
      with respect to projected financial information, the Borrower represents only
      that such information was prepared in good faith based upon assumptions believed
      to be reasonable at the time.

     

    
      
        
        

      

      
        60

        
          

        

      

      
        
        

      

    

    5.16 Compliance
      with Laws.
      Each of
      the Borrower and each Subsidiary is in compliance in all material respects
      with
      the requirements of all Laws and all orders, writs, injunctions and decrees
      applicable to it or to its properties, except in such instances in which
      (a) such requirement of Law or order, writ, injunction or decree is being
      contested in good faith by appropriate proceedings diligently conducted or
      (b) the failure to comply therewith, either individually or in the
      aggregate, could not reasonably be expected to have a Material Adverse
      Effect.

     

    5.17 Intellectual
      Property; Licenses, Etc. The
      Borrower and its Subsidiaries own, or possess the right to use, all of the
      trademarks, service marks, trade names, copyrights, patents, patent rights,
      franchises, licenses and other intellectual property rights (collectively,
      “IP
      Rights”)
      that
      are reasonably necessary for the operation of their respective businesses,
      without conflict with the rights of any other Person. To the knowledge of the
      Borrower, no slogan or other advertising device, product, process, method,
      substance, part or other material now employed, or now contemplated to be
      employed, by the Borrower or any Subsidiary
      infringes upon any rights held by any other Person. No claim or litigation
      regarding any of the foregoing is pending or, to the best knowledge of the
      Borrower, threatened, which, either individually or in the aggregate, could
      reasonably be expected to have a Material Adverse Effect.

     

    5.18 Common
      Enterprise.
      The
      operations of the Borrower and its Subsidiaries
      require financing on a basis such that the credit supplied can be made available
      from time to time to the Borrower and various of its Subsidiaries, as required
      for the continued successful operation of the Borrower and its Subsidiaries
      as a
      whole. The Borrower has requested the Lender to make credit available hereunder
      primarily for the purposes set forth in Section 6.11
      and
      generally for the purposes of financing the operations of the Borrower and
      its
      Subsidiaries. The Borrower and each of its Subsidiaries expects to derive
      benefit (and the Board of Directors or other similar governing body of the
      Borrower and each of its Subsidiaries
      has determined that such Subsidiary may reasonably be expected to derive
      benefit), directly or indirectly, from a portion of the credit extended by
      the
      Lenders hereunder, both in its separate capacity and as a member of the group
      of
      companies, since the successful operation and condition of the Borrower and
      each
      of its Subsidiaries
      is enhanced by the continued successful performance of the functions of the
      group as a whole. The Borrower acknowledges that, but for the agreement by
      each
      of the Guarantors to execute and deliver the Guaranty, the Administrative Agent
      and the Lenders would not have made available the credit facilities established
      hereby on the terms set forth herein.

     

    5.19 Solvent.
      The
      Borrower is, and the Borrower and its Subsidiaries are on a consolidated basis,
      Solvent.

     

    5.20 Taxpayer
      Identification Number.
      The
      Borrower’s true and correct U.S. taxpayer identification number is set forth on
Schedule 10.02.

     

    
      
        
        

      

      
        61

        
          

        

      

      
        
        

      

    

    ARTICLE
      VI.

    AFFIRMATIVE
      COVENANTS

     

    So
      long
      as any Lender shall have any Commitment hereunder, any Loan or other Obligation
      hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall
      remain outstanding, the Borrower shall, and shall (except in the case of the
      covenants set forth in Sections 6.01,
      6.02,
      and
6.03)
      cause
      each Subsidiary
      to:

     

    6.01 Financial
      Statements.
      Deliver
      to the Administrative Agent and each Lender, in form and detail satisfactory
      to
      the Administrative Agent and the Required Lenders:

     

    (a) as
      soon
      as available, but in any event within 90 days after the end of each fiscal
      year
      of the Borrower (commencing with the fiscal year ended May 31, 2008),
      a
      consolidated and, to the extent prepared by the Borrower, consolidating balance
      sheet of the Borrower and its Subsidiaries as at the end of such fiscal year,
      and the related consolidated and, to the extent prepared by the Borrower,
      consolidating statements of income or operations, shareholders’ equity and cash
      flows for such fiscal year, setting forth in each case in comparative form
      the
      figures for the previous fiscal year, all in reasonable detail and, with respect
      to the consolidated statements, prepared in accordance with GAAP, such
      consolidated statements to be audited and accompanied by (i) a report and
      opinion of a Registered Public Accounting Firm of nationally recognized standing
      reasonably acceptable to the Required Lenders, which report and opinion shall
      be
      prepared in accordance with generally accepted auditing standards and applicable
      Securities Laws and shall not be subject to any “going concern” or like
      qualification or exception or any qualification or exception as to the scope
      of
      such audit and (ii) an attestation report of such Registered Public
      Accounting Firm as to the Borrower’s internal controls pursuant to
      Section 404 of Sarbanes-Oxley, and, to the extent prepared by the Borrower,
      such consolidating statements to be certified by a Responsible Officer of the
      Borrower to the effect that such statements are fairly stated in all material
      respects when considered in relation to the consolidated financial statements
      of
      the Borrower and its Subsidiaries; 

     

    (b) as
      soon
      as available, but in any event within 45 days after the end of each of the
      first
      three fiscal quarters of each fiscal year of the Borrower (commencing with
      the
      fiscal quarter ended August 31, 2007), a consolidated and,
      to
      the extent prepared by the Borrower, consolidating balance sheet of the Borrower
      and its Subsidiaries as at the end of such fiscal quarter, and the related
      consolidated and, to the extent prepared by the Borrower, consolidating
      statements of income or operations, shareholders’ equity and cash flows for such
      fiscal quarter and for the portion of the Borrower’s fiscal year then ended,
      setting forth in each case in comparative form the figures for the corresponding
      fiscal quarter of the previous fiscal year and the corresponding portion of
      the
      previous fiscal year, all in reasonable detail, such consolidated statements
      to
      be certified by a Responsible Officer of the Borrower as fairly presenting
      the
      financial condition, results of operations, shareholders’ equity and cash flows
      of the Borrower and its Subsidiaries in accordance with GAAP, subject only
      to
      normal year-end audit adjustments and the absence of footnotes and, to the
      extent prepared by the Borrower, such consolidating statements to be certified
      by a Responsible Officer of the Borrower to the effect that such statements
      are
      fairly stated in all material respects when considered in relation to the
      consolidated financial statements of the Borrower and its Subsidiaries;
      and

     

    
      
        
        

      

      
        62

        
          

        

      

      
        
        

      

    

    (c) as
      soon
      as available, but in any event no more than 15 days after the end of each fiscal
      year of the Borrower, forecasts prepared by management of the Borrower, in
      form
      satisfactory to the Administrative Agent, of consolidated balance sheets and
      statements of income or operations and cash flows of the Borrower and its
      Subsidiaries on a quarterly basis for the immediately following fiscal year
      (including the fiscal years in which the Maturity Date occurs).

     

    As
      to any
      information contained in materials furnished pursuant to Section 6.02(c),
      the
      Borrower shall not be separately required to furnish such information under
      clause (a) or (b) above, but the foregoing shall not be in derogation of
      the obligation of the Borrower to furnish the information and materials
      described in clauses (a) and (b) above at the times specified
      therein.

     

    6.02 Certificates;
      Other Information.
      Deliver
      to the Administrative Agent and each Lender, in form and detail satisfactory
      to
      the Administrative Agent:

     

    (a) concurrently
      with the delivery of the financial statements referred to in Sections 6.01(a),
      and
(b) (commencing
      with the delivery of the financial statements for the fiscal quarter ended
      August 31, 2007), a duly completed Compliance Certificate signed by a
      Responsible Officer of the Borrower;

     

    (b) promptly
      after any request by the Administrative Agent, copies of any detailed audit
      reports, management letters or recommendations submitted to the board of
      directors (or the audit committee of the board of directors) of the Borrower
      by
      independent accountants in connection with the accounts or books of the Borrower
      or any Subsidiary, or any audit of any of them;

     

    (c) promptly
      after the same are available, copies of each annual report, proxy or financial
      statement or other report or communication sent to the stockholders of the
      Borrower, and copies of all annual, regular, periodic and special reports and
      registration statements which the Borrower may file or be required to file
      with
      the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934,
      and not otherwise required to be delivered to the Administrative Agent pursuant
      hereto; 

     

    (d) promptly
      after the furnishing thereof, copies of any statement or report furnished to
      any
      holder of debt securities of any Loan Party or any Subsidiary thereof pursuant
      to the terms of any indenture, loan or credit or similar agreement and not
      otherwise required to be furnished to the Lenders pursuant to Section 6.01
      or any
      other clause of this Section 6.02; 

     

    (e) promptly,
      and in any event within five Business Days after receipt thereof by any Loan
      Party or any Subsidiary thereof, copies of each notice or other correspondence
      received from the SEC (or comparable agency in any applicable non-U.S.
      jurisdiction) concerning any investigation or possible investigation by such
      agency regarding financial or other operational results of any Loan Party or
      any
      Subsidiary thereof; and

     

    
      
        
        

      

      
        63

        
          

        

      

      
        
        

      

    

    (f) promptly,
      such additional information regarding the business, financial or corporate
      affairs of the Borrower or any Subsidiary, or compliance with the terms of
      the
      Loan Documents, as the Administrative Agent or any Lender may from time to
      time
      reasonably request.

     

    Documents
      required to be delivered pursuant to Section 6.01
      or
Section 6.02
      (other
      than Section 6.02(a))
      may be
      delivered electronically and if so delivered, shall be deemed to have been
      delivered on the date (i) on which the Borrower posts such documents, or
      provides a link thereto on the Borrower’s website on the Internet at the website
      address listed on Schedule 10.02;
      or
      (ii) on which such documents are posted on the Borrower’s behalf on an
      Internet or intranet website, if any, to which each Lender and the
      Administrative Agent have access (whether a commercial, third-party website
      or
      whether sponsored by the Administrative Agent); provided
      that:
      (i) the Borrower shall deliver paper copies of such documents to the
      Administrative Agent or any Lender that requests the Borrower to deliver such
      paper copies until a written request to cease delivering paper copies is given
      by the Administrative Agent or such Lender and (ii) the Borrower shall
      notify the Administrative Agent and each Lender (by telecopier or electronic
      mail) of the posting of any such documents and provide to the Administrative
      Agent by electronic mail electronic versions (i.e.,
      soft
      copies) of such documents. Notwithstanding anything contained herein, in every
      instance the Borrower shall be required to provide paper copies of the
      Compliance Certificates required by Section 6.02(a)
      to the
      Administrative Agent. Except for such Compliance Certificates, the
      Administrative Agent shall have no obligation to request the delivery or to
      maintain copies of the documents referred to above, and in any event shall
      have
      no responsibility to monitor compliance by the Borrower with any such request
      for delivery, and each Lender shall be solely responsible for requesting
      delivery to it or maintaining its copies of such documents.

     

    The
      Borrower hereby acknowledges that (a) the Administrative Agent and/or the
      Arranger will make available to the Lenders and the L/C Issuer materials and/or
      information provided by or on behalf of the Borrower hereunder (collectively,
      “Borrower
      Materials”)
      by
      posting the Borrower Materials on IntraLinks or another similar electronic
      system (the “Platform”)
      and
      (b) certain of the Lenders (each, a “Public
      Lender”)
      may
      have personnel who do not wish to receive material non-public information with
      respect to the Borrower or its Affiliates, or the respective securities of
      any
      of the foregoing, and who may be engaged in investment and other market related
      activities with respect to such Persons’ securities. The Borrower hereby agrees
      that (w) all Borrower Materials that are to be made available to Public
      Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum,
      shall mean that the word “PUBLIC” shall appear prominently on the first page
      thereof; (x) by marking Borrower Materials “PUBLIC,” the Borrower shall be
      deemed to have authorized the Administrative Agent, the Arranger, the L/C Issuer
      and the Lenders to treat such Borrower Materials as not containing any material
      non-public information with respect to the Borrower or its securities for
      purposes of United States Federal and state securities laws (provided,
      however,
      that to
      the extent such Borrower Materials constitute Information, they shall be treated
      as set forth in Section 10.07);
      (y) all Borrower Materials marked “PUBLIC” are permitted to be made
      available through a portion of the Platform designated “Public Investor;” and
      (z) the Administrative Agent and the Arranger shall be entitled to treat
      any Borrower Materials that are not marked “PUBLIC” as being suitable only for
      posting on a portion of the Platform not designated “Public Investor.”
Notwithstanding the foregoing, the Borrower shall be under no obligation to
      mark
      any Borrower Materials “PUBLIC.”

     

    
      
        
        

      

      
        64

        
          

        

      

      
        
        

      

    

    6.03 Notices.
      Promptly
      notify the Administrative Agent and each Lender:

     

    (a) of
      the
      occurrence of any Default;

     

    (b) of
      any
      matter that has resulted or could reasonably be expected to result in a Material
      Adverse Effect, including such matters as (i) breach or non-performance of,
      or any default under, a Contractual Obligation of the Borrower or any
      Subsidiary; (ii) any dispute, litigation, investigation, proceeding or
      suspension between the Borrower or any Subsidiary
      and any Governmental Authority; or (iii) the commencement of, or any
      material development in, any litigation or proceeding affecting the Borrower
      or
      any Subsidiary, including pursuant to any applicable Environmental
      Laws;

     

    (c) of
      any
      litigation, investigation or proceeding affecting any Loan Party in which the
      damages, penalties, fines or other sanctions could reasonably be expected to
      exceed $5,000,000 (to the extent not covered by independent third-party
      insurance) or in which injunctive relief or similar relief is sought, which
      relief, if granted, could be reasonably expected to have a Material Adverse
      Effect;

     

    (d) of
      the
      occurrence of any ERISA Event;

     

    (e) of
      any
      material change in accounting policies or financial reporting practices by
      the
      Borrower or any Subsidiary, including any determination by the Borrower referred
      to in Section 2.10(b);
      and

     

    (f) of
      the
      occurrence of any Internal Control Event.

     

    Each
      notice pursuant to this Section shall be accompanied by a statement of a
      Responsible Officer of the Borrower setting forth details of the occurrence
      referred to therein and stating what action the Borrower has taken and proposes
      to take with respect thereto. Each notice pursuant to Section 6.03(a)
      shall
      describe with particularity any and all provisions of this Agreement and any
      other Loan Document that have been breached.

     

    6.04 Payment
      of Obligations.
      Pay and
      discharge as the same shall become due and payable, all its material obligations
      and liabilities, including (a) all material tax liabilities, assessments
      and governmental charges or levies upon it or its properties or assets, unless
      the same are being contested in good faith by appropriate proceedings diligently
      conducted and adequate reserves in accordance with GAAP are being maintained
      by
      the Borrower or such Subsidiary; (b) all material lawful claims which, if
      unpaid, would by law become a Lien upon its property; and (c) all Debt in a
      principal amount of at least $1,000,000, as and when due and payable, but
      subject to any subordination provisions contained in any instrument or agreement
      pertaining to such Debt.

     

    6.05 Preservation
      of Existence, Etc.
      (a) Preserve, renew and maintain in full force and effect its legal
      existence and good standing under the Laws of the jurisdiction of its
      organization except in a transaction permitted by Section 7.04;
      (b) take all reasonable action to maintain all rights, privileges, permits,
      licenses and franchises necessary or desirable in the normal conduct of its
      business, except to the 

     

    
      
        
        

      

      
        65

        
          

        

      

      
        
        
extent
        that failure to do so could not reasonably be expected to have a Material
        Adverse Effect including, without limitation, licenses and permits issued
        by the
        United States Federal Aviation Administration or foreign aeronautical
        authorities; and (c) preserve or renew all of its registered patents,
        trademarks, trade names and service marks, the non-preservation of which
        could
        reasonably be expected to have a Material Adverse Effect.

    

     

    6.06 Maintenance
      of Properties.
      (a) Maintain, preserve and protect all of its material properties and
      equipment necessary in the operation of its business in good working order
      and
      condition, ordinary wear and tear excepted; (b) make all necessary repairs
      thereto and renewals and replacements thereof except where the failure to do
      so
      could not reasonably be expected to have a Material Adverse Effect;
      and
      (c) use the standard of care typical in the industry in the operation and
      maintenance of its facilities.

     

    6.07 Maintenance
      of Insurance.
      Maintain
      with financially sound and reputable insurance companies not Affiliates of
      the
      Borrower, insurance with respect to its properties and business against loss
      or
      damage of the kinds customarily insured against by Persons engaged in the same
      or similar business, of such types and in such amounts as are customarily
      carried under similar circumstances by such other Persons and providing for
      not
      less than 30 days prior notice to the Administrative Agent of termination,
      lapse
      or cancellation of such insurance. 

     

    6.08 Compliance
      with Laws.
      Comply
      in all material respects with the requirements of all Laws and all orders,
      writs, injunctions and decrees applicable to it or to its business or property,
      except in such instances in which (a) such requirement of Law or order,
      writ, injunction or decree is being contested in good faith by appropriate
      proceedings diligently conducted; or (b) the failure to comply therewith
      could not reasonably be expected to have a Material Adverse Effect.

     

    6.09 Books
      and Records.
      Maintain
      proper books of record and account, in which full, true and correct entries
      in
      conformity with GAAP consistently applied shall be made of all financial
      transactions and matters involving the assets and business of the Borrower
      or
      such Subsidiary, as the case may be.

     

    6.10 Inspection
      Rights.
      Permit
      representatives and independent contractors of the Administrative Agent or
      selected by the Required Lenders (accompanied by any Lender which so elects
      with
      the consent of the Administrative Agent) to visit and inspect any of its
      properties, to examine its corporate, financial and operating records, and
      make
      copies thereof or abstracts therefrom, and to discuss its affairs, finances
      and
      accounts with its directors, officers, and independent public accountants,
      at
      such reasonable times during normal business hours and as often as may be
      reasonably desired, upon reasonable advance notice to the Borrower; provided,
      however,
      prior
      to an Event of Default, the Borrower shall not be obligated to pay any expenses
      related to more than one such visit and inspection during any calendar year;
      provided,
      further,
      however,
      that
      when an Event of Default exists the Administrative Agent or any Lender (or
      any
      of their respective representatives or independent contractors) may do any
      of
      the foregoing at the expense of the Borrower at any time during normal business
      hours and without advance notice.

     

    
      
        
        

      

      
        66

        
          

        

      

      
        
        

      

    

    6.11 Use
      of Proceeds.
      Use the
      proceeds of the Credit Extensions to repay all obligations in respect of the
      Existing Credit Agreement and for working capital, capital expenditures to
      the
      extent permitted hereunder, and for other general corporate purposes not in
      contravention of any Law or of any Loan Document.

     

    6.12 Further
      Assurances.
      At any
      time or from time to time upon reasonable request by the Administrative Agent,
      the Borrower shall or shall cause any of the Borrower’s Subsidiaries
      to execute and deliver such further documents and do such other acts and things
      as the Administrative Agent may reasonably request in order to effect fully
      the
      purposes of this Agreement and the other Loan Documents and to provide for
      payment of the Obligations in accordance with the terms of this Agreement and
      the other Loan Documents.

     

    6.13 Additional
      Subsidiaries.
      Within
      ten Business Days after the time that (a) any Person becomes a Domestic
      Subsidiary as a result of the creation of such Subsidiary or an Acquisition
      or
      otherwise, such Subsidiary, if it is a Material Subsidiary, shall execute a
      Guaranty, and (b) any Domestic Subsidiary that was not a Material Domestic
      Subsidiary becomes a Material Domestic Subsidiary, such Subsidiary shall execute
      a Guaranty, and in each case with respect to subsections (a) and (b) above,
      the Lenders shall receive such board resolutions, officer’s certificates,
      corporate and other documents and opinions of counsel as the Administrative
      Agent shall reasonably request in connection with the actions described in
      such
      subsections. 

     

    ARTICLE
      VII.

    NEGATIVE
      COVENANTS

     

    So
      long
      as any Lender shall have any Commitment hereunder, any Loan or other Obligation
      hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall
      remain outstanding, the Borrower shall not, nor shall it permit any Subsidiary
      to, directly or indirectly:

     

    7.01 Liens.
      Create,
      incur, assume or suffer to exist any Lien upon any of its property, assets
      or
      revenues, whether now owned or hereafter acquired, other than Permitted
      Liens.

     

    7.02 Investments.
      Make
      any Investments, except:

     

    (a) Cash
      Equivalents;

     

    (b) Investments
      in one or more Subsidiaries or Persons which become Subsidiaries (including
      Guaranties of their obligations to the extent the related Debt is permitted
      hereunder) that (i) are subject to the provisions hereof, (ii) comply
      with Section 6.13
      and
      (iii) if an Acquisition, complies with Section 7.02(e);

     

    (c) Accounts
      receivable that arise in the ordinary course of business and are payable on
      standard terms or which have been converted to a note receivable or an Equity
      Interest;

     

    (d) Investments
      in existence on the Closing Date which are described on Schedule 7.02(d);

     

    
      
        
        

      

      
        67

        
          

        

      

      
        
        

      

    

    (e) Acquisitions,
      provided
      (i) immediately before and after giving effect to such proposed Acquisition
      there shall exist no Default, (ii) such Acquisition shall not be opposed by
      the board of directors (or other governing body) of the Person being acquired,
      (iii) if the aggregate Acquisition Consideration for such proposed
      Acquisition exceeds $10,000,000, the Administrative Agent shall have received
      a
      Compliance Certificate at least 10 Business Days prior to the date of such
      Acquisition setting forth the covenant calculations in Section 7.11
      both
      immediately before and after giving effect to the proposed Acquisition,
      (iv) the assets, property or business acquired shall be in the types of
      businesses presently engaged in by the Borrower and its Subsidiaries,
      (v) if such Acquisition results in a Subsidiary, the Administrative Agent
      shall have received any documentation required by Section 6.13,
      (vi) during any Limited Amount Period, the Acquisition Consideration for
      all Acquisitions during such Limited Amount Period and the aggregate amount
      of
      all such other Investments made pursuant to Section 7.02(f)
      during
      such Limited Amount Period, shall not exceed $30,000,000, and (vii) during
      all Limited Amount Periods, the aggregate Acquisition Consideration for all
      Acquisitions during all Limited Amount Periods and the aggregate amount of
      all
      such other Investments made pursuant to Section 7.02(f)
      during
      all Limited Amount Periods shall not exceed $100,000,000; and 

     

    (f) Investments
      not otherwise permitted pursuant to this Section 7.02,
      provided
      (i) immediately before and after giving effect to such proposed Investment
      there shall exist no Default, (ii) during any Limited Amount Period, the
      aggregate amount of all such other Investments permitted to be made during
      such
      Limited Amount Period and the Acquisition Consideration for all Acquisitions
      during such Limited Amount Period shall not exceed $30,000,000, and
      (iii) during all Limited Amount Periods, the aggregate amount of all such
      other Investments during all Limited Amount Periods and the Aggregate
      Acquisition Consideration for all Acquisitions during all Limited Amount Periods
      shall not exceed $100,000,000.

     

    7.03 Debt.
      Create,
      incur, assume or suffer to exist any Debt, except:

     

    (a) Debt
      under the Loan Documents;

     

    (b) Guaranties
      in respect of Debt permitted by this Section 7.03;

     

    (c) Debt
      outstanding on the date hereof and listed on Schedule 7.03(c)
      and any
      refinancings, refundings, renewals or extensions thereof; provided
      that
      (i) the amount of such Debt is not increased at the time of such
      refinancing, refunding, renewal or extension except by an amount equal to a
      reasonable premium or other reasonable amount paid, and fees and expenses
      reasonably incurred, in connection with such refinancing and by an amount equal
      to any existing commitments unutilized thereunder and (ii) the terms
      relating to principal amount, amortization, maturity, collateral (if any) and
      subordination (if any), and other material terms taken as a whole, of any such
      refinancing, refunding, renewing or extending Debt, and of any agreement entered
      into and of any instrument issued in connection therewith, are no less favorable
      in any material respect to the Loan Parties or the Lenders than the terms of
      any
      agreement or instrument governing the Debt being refinanced, refunded, renewed
      or extended and the interest rate applicable to any such refinancing, refunding,
      renewing or extending Debt does not exceed the then applicable market interest
      rate;

     

    
      
        
        

      

      
        68

        
          

        

      

      
        
        

      

    

    (d) Debt
      incurred to purchase assets, provided,
      (i) immediately before and after giving effect to such proposed Debt there
      shall exist no Default and (ii) during any Limited Amount Period, the
      aggregate outstanding principal amount of all such Debt incurred during such
      Limited Amount Period shall not exceed $25,000,000;

     

    (e) Debt
      under the Senior Notes;

     

    (f) Debt
      in
      respect of intercompany loans between and among any of the Borrower and any
      Guarantor, each of which such loans shall be evidenced by a promissory note,
      provided that such Debt is subordinate to any Obligations under any of the
      Loan
      Documents and under the Senior Notes in form and substance satisfactory to
      the
      Administrative Agent; 

     

    (g) obligations
      (contingent or otherwise) of the Borrower or any Subsidiary existing or arising
      under any Swap Contract, provided
      that
      such obligations are (or were) entered into in the ordinary course of business
      for the purpose of (i) directly mitigating risks associated with
      liabilities, commitments, investments, assets, or property held or reasonably
      anticipated by the Borrower and its Subsidiaries, or changes in the value of
      securities issued by the Borrower and its Subsidiaries, and not for purposes
      of
      speculation or taking a “market view”, or (ii) unwinding, in whole or in
      part, Swap Contracts entered into for a purpose described in the preceding
      clause (i); 

     

    (h) Guaranties
      in respect of transactions by the Borrower or any Subsidiaries permitted under
      this Agreement; 

     

    (i) consolidated
      cash management obligations in the ordinary course of business among the
      Borrower and the Guarantors; 

     

    (j) other
      unsecured Debt not otherwise permitted pursuant to this Section 7.03,
      provided,
      (i) immediately before and after giving effect to such Debt there shall
      exist no Default, and (ii) such unsecured Debt shall not have (w) any
      scheduled amortization or mandatory prepayments or obligations to repurchase
      prior to six months after the Maturity Date, and (x) any terms, covenants
      and provisions that are materially more restrictive on the Borrower and its
      Subsidiaries than this Agreement or provide materially greater enforcement
      rights than the enforcement rights of the Administrative Agent and the Lenders
      under the Loan Documents; and

     

    (k) unsecured
      or secured Debt (including Capitalized Lease Obligations) not otherwise
      permitted pursuant to this Section 7.03,
      provided
      (i)
      immediately before and after giving effect to such proposed Debt there shall
      exist no Default and (ii) the aggregate outstanding principal amount of all
      such Debt shall not exceed $25,000,000.

     

    7.04 Fundamental
      Changes.
      Merge,
      dissolve, liquidate, consolidate with or into another Person except that, so
      long as no Default exists or would result therefrom any Subsidiary may merge
      with (a) the Borrower, provided
      that the
      Borrower shall be the continuing or surviving Person, or (b) any one or
      more other Subsidiaries, provided
      that
      when any Guarantor is merging with another Subsidiary, a Guarantor shall be
      the
      continuing or surviving Person.

     

    
      
        
        

      

      
        69

        
          

        

      

      
        
        

      

    

    7.05 Dispositions.
      Make any
      Disposition or enter into any agreement to make any Disposition,
      except:

     

    (a) Dispositions
      of obsolete or worn out property, whether now owned or hereafter acquired,
      in
      the ordinary course of business;

     

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

     

    (c) the
      sale,
      discount, or transfer of delinquent accounts receivable in the ordinary course
      of business for purposes of collection;

     

    (d) Dispositions
      of equipment or real property to the extent that (i) such property is
      exchanged for credit against the purchase price of similar replacement property
      or (ii) the proceeds of such Disposition are reasonably promptly applied to
      the purchase price of such replacement property;

     

    (e) Dispositions
      of property by the Borrower or any Subsidiary to the Borrower or to a
      Wholly-Owned Subsidiary or a Guarantor; provided
      that if
      the transferor of such property is the Borrower or a Guarantor, the transferee
      thereof must either be the Borrower or a Guarantor;

     

    (f) Dispositions
      permitted by Section 7.02,
      7.03,
      7.04
      or
7.06;
      and

     

    (g) so
      long
      as there exists no Default immediately before and after giving effect to any
      such transaction, Dispositions not otherwise permitted in clauses (a)
      through (f) above, the Net Cash Proceeds of which are applied in accordance
      with
Section 2.05(d);
      

     

    provided,
      however,
      that
      any Disposition shall be for fair market value.

     

    7.06 Restricted
      Payments.
      Declare
      or make, directly or indirectly, any Restricted Payment, or incur any obligation
      (contingent or otherwise) to do so, except that, so long as no Default shall
      have occurred and be continuing at the time of any action described below or
      would result therefrom:

     

    (a) each
      Subsidiary may make Restricted Payments to the Borrower, the Guarantors and
      any
      other Person that owns an Equity Interest in such Subsidiary, ratably according
      to their respective holdings of the type of Equity Interest in respect of which
      such Restricted Payment is being made;

     

    (b) the
      Borrower and each Subsidiary may declare and make any Dividends or other
      distributions payable solely in the common stock or other common Equity
      Interests of such Person;

     

    (c) during
      an
      Unlimited Restricted Payment Period, the Borrower may declare and make other
      Restricted Payments payable in cash; 

     

    (d) (i) during
      a Limited Restricted Payment Period, the Borrower may declare and make Dividends
      in an aggregate amount not to exceed $10,000,000 during any four fiscal-quarter
      period and (ii) during all Limited Restricted Payment Periods, the Borrower
      may make other Restricted Payments (including Dividends, but excluding for
      purposes of calculating the aggregate amount permitted pursuant to this
      clause (ii) any and all Dividends paid pursuant to clause (i)
      immediately preceding), in an aggregate amount not to exceed
      $25,000,000.

     

    
      
        
        

      

      
        70

        
          

        

      

      
        
        

      

    

    Nothing
      in this Section 7.06
      shall
      prohibit any transaction among the Borrower and its Subsidiaries that is
      expressly permitted under Sections 7.02,
      7.03
      or
7.04.

     

    7.07 Change
      in Nature of Business.
      Engage
      in any material line of business substantially different from those lines of
      business conducted by the Borrower and its Subsidiaries on the date hereof
      or
      any business substantially related or incidental thereto.

     

    7.08 Transactions
      with Affiliates.
      Enter
      into any transaction of any kind with any Affiliate of the Borrower (other
      than
      a Wholly-Owned Subsidiary), whether or not in the ordinary course of business,
      other than on fair and reasonable terms substantially as favorable to the
      Borrower or such Subsidiary as would be obtainable by the Borrower or such
      Subsidiary at the time in a comparable arm’s length transaction with a Person
      other than an Affiliate.

     

    7.09 Burdensome
      Agreements.
      Enter
      into any Contractual Obligation (other than this Agreement or any other Loan
      Document) that (a) limits the ability (i) of any Subsidiary to make
      Restricted Payments to the Borrower or any Guarantor or to otherwise transfer
      property to the Borrower or any Guarantor, (ii) of any Subsidiary to
      Guarantee the Debt of the Borrower or (iii) of the Borrower or any
      Subsidiary to create, incur, assume or suffer to exist Liens on property of
      such
      Person; provided,
      however,
      that
      the restrictions above shall not (A) prohibit any negative pledge incurred
      or provided (x) in favor of any holder of Debt permitted under Section 7.03(d)
      or
Section 7.03(k),
      in each
      case solely to the extent any such negative pledge relates to the property
      financed by or the subject of such Debt or (y) with respect to the Senior
      Notes, (B) apply to restrictions and conditions relating to the sale of a
      Subsidiary pending such sale, provided
      such
      restrictions or conditions apply only to the Subsidiary that is to be sold
      and
      such sale is permitted hereunder and (C) apply to customary provisions in
      leases and other contracts restricting the assignment or pledge thereof; or
      (b) requires the grant of a Lien other than a Permitted Lien to secure an
      obligation of such Person if a Lien is granted to secure another obligation
      of
      such Person.

     

    7.10 Use
      of Proceeds.
      Use the
      proceeds of any Credit Extension, whether directly or indirectly, and whether
      immediately, incidentally or ultimately, to purchase or carry margin stock
      (within the meaning of Regulation U of the FRB) or to extend credit to
      others for the purpose of purchasing or carrying margin stock or to refund
      indebtedness originally incurred for such purpose.

     

    7.11 Financial
      Covenants.

     

    (a) Leverage
      Ratio. Permit
      the Leverage Ratio as of the end of any fiscal quarter of the Borrower to be
      greater than 4.00 to 1.00.

     

    
      
        
        

      

      
        71

        
          

        

      

      
        
        

      

    

    (b) Interest
      Coverage Ratio.
      Permit
      the Interest Coverage Ratio as of the end of any fiscal quarter of the Borrower
      to be less than 2.50 to 1.00.

     

    7.12 Sale
      and Leaseback.
      Enter
      into any arrangement whereby it sells or transfers any of its assets, and
      thereafter rents or leases such assets.

     

    7.13 Sale
      or Discount of Receivables.
      Sell,
      with or without recourse, for discount or otherwise, any notes or accounts
      receivable, other than bad debts sold in accordance with regular collection
      procedures.

     

    7.14 Debt
      Modifications.
      Amend,
      modify or supplement the Senior Notes or any Debt permitted pursuant to
Section 7.03(j),
      in any
      way that causes such unsecured Debt to have (i) any scheduled amortization
      or mandatory prepayments or obligations to repurchase prior to six months after
      the Maturity Date or (ii) any terms, covenants and provisions that are
      materially more restrictive on the Borrower and its Subsidiaries than this
      Agreement or provide materially greater enforcement rights than the enforcement
      rights of the Administrative Agent and the Lenders under this Agreement and
      the
      other Loan Documents.

     

    7.15 Debt
      Payments.
      Prepay,
      pay, redeem, purchase in any manner, or make any payment in respect of, or
      transfer any property in payment of or as security for the payment of, or
      establish any sinking fund, reserve or analogous fund for the redemption,
      retirement, prepayment or repayment of, any principal of, interest on, or any
      fees or other amounts related to any Subordinated Debt, the Senior Notes or
      any
      Debt permitted pursuant to Section 7.03(j)
      (collectively, “Restricted
      Debt Payments”),
      except (a) regularly scheduled payments of interest in respect of the
      Senior Notes and Debt permitted pursuant to Section 7.03(j),
      (b) regularly scheduled payment of interest in respect of any such
      Subordinated Debt, provided that immediately before and after giving effect
      thereto there is no Default, (c) provided that immediately before and after
      giving effect thereto there is no Default, any other Restricted Debt Payments
      during any Unlimited Amount Period, and (d) provided that (i) immediately
      before and after giving effect thereto there is no Default, and (ii) after
      giving effect thereto Availability is not less than $100,000,000, any other
      Restricted Debt Payments during all Limited Amount Periods, not to exceed
      $50,000,000 in aggregate amount during all such Limited Amount
      Periods.

     

    ARTICLE
      VIII.

    EVENTS
      OF DEFAULT AND REMEDIES

     

    8.01 Events
      of Default.
      Any of
      the following shall constitute an Event of Default:

     

    (a) Non-Payment.
      The
      Borrower or any other Loan Party fails to pay (i) when and as required to
      be paid herein, any amount of principal of any Loan or any L/C Obligation,
      or
      (ii) within three days after the same becomes due, any interest on any Loan
      or on any L/C Obligation, or any fee due hereunder, or (iii) within five
      days after the same becomes due, any other amount payable hereunder or under
      any
      other Loan Document; or

     

    
      
        
        

      

      
        72

        
          

        

      

      
        
        

      

    

    (b) Specific
      Covenants.
      The
      Borrower or any Subsidiary, as applicable, fails to perform or observe any
      term,
      covenant or agreement contained in any of Section 6.03(a),
      6.10,
      6.11
      or
6.12
      or
Article VII,
      or any
      default exists under the Guaranty; or

     

    (c) Other
      Defaults.
      The
      Borrower or any Subsidiary, as applicable, fails to perform or observe any
      other
      covenant or agreement (not specified in subsection (a) or (b) above)
      contained in any Loan Document on its part to be performed or observed and
      such
      failure continues for 30 days after the Administrative Agent has given notice
      thereof (which may be by electronic communication) to the Borrower;
      or

     

    (d) Representations
      and Warranties.
      Any
      representation, warranty, certification or statement of fact made or deemed
      made
      by or on behalf of the Borrower or any Subsidiary herein, in any other Loan
      Document, or in any document delivered in connection herewith or therewith
      shall
      be incorrect or misleading in any material respect when made or deemed made;
      or

     

    (e) Cross-Default.
      (i) The Borrower or any Subsidiary (A) fails to make any payment when
      due (whether by scheduled maturity, required prepayment, acceleration, demand,
      or otherwise) in respect of any Debt or Guarantee (other than Debt hereunder
      and
      Debt under Swap Contracts) having an aggregate principal amount (including
      amounts owing to all creditors under any combined or syndicated credit
      arrangement) of more than $10,000,000,
      or
      (B) fails to observe or perform any other agreement or condition relating
      to any such Debt or Guarantee or contained in any instrument or agreement
      evidencing, securing or relating thereto, or any other event occurs, the effect
      of which default or other event is to cause, or to permit the holder or holders
      of such Debt or the beneficiary or beneficiaries of such Guarantee (or a trustee
      or agent on behalf of such holder or holders or beneficiary or beneficiaries)
      to
      cause, with the giving of notice if required, such Debt to be demanded or to
      become due or to be repurchased, prepaid, defeased or redeemed (automatically
      or
      otherwise), or an offer to repurchase, prepay, defease or redeem such Debt
      to be
      made, prior to its stated maturity, or such Guarantee to become payable or
      cash
      collateral in respect thereof to be demanded; or (ii) there occurs under
      any Swap Contract an Early Termination Date (as defined in such Swap Contract)
      resulting from (A) any event of default under such Swap Contract as to
      which the Borrower or any Subsidiary is the Defaulting Party (as defined in
      such
      Swap Contract) or (B) any Termination Event (as so defined) under such Swap
      Contract as to which the Borrower or any Subsidiary is an Affected Party (as
      so
      defined) and, in either event, the Swap Termination Value owed by the Borrower
      or such Subsidiary as a result thereof is greater than $10,000,000 and is not
      paid within five Business Days thereafter; or

     

    (f) Insolvency
      Proceedings, Etc.
      The
      Borrower or any Subsidiary institutes or consents to the institution of any
      proceeding under any Debtor Relief Law, or makes an assignment for the benefit
      of creditors; or applies for or consents to the appointment of any receiver,
      trustee, custodian, conservator, liquidator, rehabilitator or similar officer
      for it or for all or any material part of its property; or any receiver,
      trustee, custodian, conservator, liquidator, rehabilitator or similar officer
      is
      appointed without the application or consent of such Person and the appointment
      continues undischarged or unstayed for 60 calendar days; or any proceeding
      under
      any Debtor Relief Law relating to any such Person or to all or any material
      part
      of its property is instituted without the consent of such Person and continues
      undismissed or unstayed for 60 calendar days, or an order for relief is entered
      in any such proceeding; or

     

    
      
        
        

      

      
        73

        
          

        

      

      
        
        

      

    

    (g) Inability
      to Pay Debts; Attachment.
      (i) The Borrower or any Subsidiary becomes unable or admits in writing its
      inability or fails generally to pay its debts as they become due, or
      (ii) any writ or warrant of attachment or execution or similar process is
      issued or levied against all or any material part of the property of any such
      Person and is not released, vacated or stayed within 30 days after its issue
      or
      levy; or

     

    (h) Judgments.
      There
      is entered against the Borrower or any Subsidiary (i) a final judgment or
      order for the payment of money in an aggregate amount exceeding $5,000,000
      (to
      the extent not covered by independent third-party insurance as to which the
      insurer does not dispute coverage), or (ii) any one or more non-monetary
      final judgments that have, or could reasonably be expected to have, individually
      or in the aggregate, a Material Adverse Effect and, in either case,
      (A) valid enforcement proceedings are commenced by any creditor upon such
      judgment or order, or (B) there is a period of 30 consecutive days during
      which a stay of enforcement of such judgment, by reason of a pending appeal
      or
      otherwise, is not in effect; or

     

    (i) ERISA.
      (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer
      Plan which has resulted or could reasonably be expected to result in liability
      of the Borrower under Title IV of ERISA to the Pension Plan, Multiemployer
      Plan or the PBGC in an aggregate amount in excess of $5,000,000, or
      (ii) the Borrower or any ERISA Affiliate fails to pay when due, after the
      expiration of any applicable grace period, any installment payment with respect
      to its withdrawal liability under Section 4201 of ERISA under a
      Multiemployer Plan in an aggregate amount in excess of $5,000,000;
      or

     

    (j) Invalidity
      of Loan Documents.
      Any
      Loan Document, at any time after its execution and delivery and for any reason
      other than as expressly permitted hereunder or thereunder or satisfaction in
      full of all the Obligations, ceases to be in full force and effect; or any
      Loan
      Party or any other Person contests in any manner the validity or enforceability
      of any Loan Document; or any Loan Party denies that it has any or further
      liability or obligation under any Loan Document, or purports to revoke,
      terminate or rescind any Loan Document; or

     

    (k) Change
      of Control.
      There
      occurs any Change of Control.

     

    8.02 Remedies
      Upon Event of Default.
      If any
      Event of Default occurs and is continuing, the Administrative Agent shall,
      at
      the request of, or may, with the consent of, the Required Lenders, take any
      or
      all of the following actions:

     

    (a) declare
      the commitment of each Lender to make Loans and any obligation of the L/C Issuer
      to make L/C Credit Extensions to be terminated, whereupon such commitments
      and
      obligation shall be terminated;

     

    (b) declare
      the unpaid principal amount of all outstanding Loans, all interest accrued
      and
      unpaid thereon, and all other amounts owing or payable hereunder or under any
      other Loan Document to be immediately due and payable, without presentment,
      demand, protest or other notice of any kind, all of which are hereby expressly
      waived by the Borrower;

     

    
      
        
        

      

      
        74

        
          

        

      

      
        
        

      

    

    (c) require
      that the Borrower Cash Collateralize the L/C Obligations (in an amount equal
      to
      the then Outstanding Amount thereof); and

     

    (d) exercise
      on behalf of itself and the Lenders all rights and remedies available to it
      and
      the Lenders under the Loan Documents;

     

    provided,
      however,
      that
      upon the occurrence of an actual or deemed entry of an order for relief with
      respect to the Borrower under the Bankruptcy Code of the United States, the
      obligation of each Lender to make Loans and any obligation of the L/C Issuer
      to
      make L/C Credit Extensions shall automatically terminate, the unpaid principal
      amount of all outstanding Loans and all interest and other amounts as aforesaid
      shall automatically become due and payable, and the obligation of the Borrower
      to Cash Collateralize the L/C Obligations as aforesaid shall automatically
      become effective, in each case without further act of the Administrative Agent
      or any Lender.

     

    8.03 Application
      of Funds.
      After
      the exercise of remedies provided for in Section 8.02
      (or
      after the Loans have automatically become immediately due and payable and the
      L/C Obligations have automatically been required to be Cash Collateralized
      as
      set forth in the proviso to Section 8.02),
      any
      amounts received on account of the Guarantied Obligations shall be applied
      by
      the Administrative Agent in the following order: 

     

    First,
      to
      payment of that portion of the Guarantied Obligations constituting fees,
      indemnities, expenses and other amounts (including fees, charges and
      disbursements of counsel to the Administrative Agent and amounts payable under
      Article III)
      payable
      to the Administrative Agent in its capacity as such;

     

    Second,
      to
      payment of that portion of the Guarantied Obligations constituting fees,
      indemnities and other amounts (other than principal, interest, Letter of Credit
      Fees and Cash Management Obligations) payable to the Lenders and the L/C Issuer
      (including fees, charges and disbursements of counsel to the respective Lenders
      and the L/C Issuer (including fees and time charges for attorneys who may be
      employees of any Lender or the L/C Issuer) and amounts payable under
Article III),
      ratably among them in proportion to the respective amounts described in this
      clause Second
      payable
      to them;

     

    Third,
      to
      payment of that portion of the Guarantied Obligations, (other than Obligations
      with respect to Swap Contracts and Cash Management Obligations), constituting
      accrued and unpaid Letter of Credit Fees and interest on the Loans, L/C
      Borrowings and other Obligations ratably among the Lenders and the L/C Issuer
      in
      proportion to the respective amounts described in this clause Third
      payable
      to them;

     

    Fourth,
      to
      payment of that portion of the Guarantied Obligations, constituting obligations
      in the amount of the Termination Value with respect to Swap Contracts, unpaid
      principal of the Loans and L/C Borrowings, ratably among the Lenders and the
      L/C
      Issuer in proportion to the respective amounts described in this clause
Fourth
      held by
      them;

     

    
      
        
        

      

      
        75

        
          

        

      

      
        
        

      

    

    Fifth,
      to the
      Administrative Agent for the account of the L/C Issuer, to Cash Collateralize
      that portion of L/C Obligations comprised of the aggregate undrawn amount of
      Letters of Credit; and

     

    Sixth,
      to
      payment of remaining portion of the Guarantied Obligations (including Cash
      Management Obligations), ratably among the Lenders in proportion to the
      respective amounts described in this clause Sixth
      held by
      them; and

     

    Last,
      the
      balance, if any, after all of the Guarantied Obligations have been indefeasibly
      paid in full, to the Borrower or as otherwise required by Law.

     

    Subject
      to Section 2.03(c),
      amounts
      used to Cash Collateralize the aggregate undrawn amount of Letters of Credit
      pursuant to clause Fifth above shall be applied to satisfy drawings under such
      Letters of Credit as they occur. 

     

    ARTICLE
      IX.

    ADMINISTRATIVE
      AGENT

     

    9.01 Appointment
      and Authority. 

     

    Each
      of
      the Lenders and the L/C Issuer hereby irrevocably appoints Bank of America
      to
      act on its behalf as the Administrative Agent hereunder and under the other
      Loan
      Documents and authorizes the Administrative Agent to take such actions on its
      behalf and to exercise such powers as are delegated to the Administrative Agent
      by the terms hereof or thereof, together with such actions and powers as are
      reasonably incidental thereto. The provisions of this Article are solely for
      the
      benefit of the Administrative Agent, the Lenders and the L/C Issuer, and neither
      the Borrower nor any other Loan Party shall have rights as a third party
      beneficiary of any of such provisions.

     

    9.02 Rights
      as a Lender.
      The
      Person serving as the Administrative Agent hereunder shall have the same rights
      and powers in its capacity as a Lender as any other Lender and may exercise
      the
      same as though it were not the Administrative Agent and the term “Lender” or
“Lenders” shall, unless otherwise expressly indicated or unless the context
      otherwise requires, include the Person serving as the Administrative Agent
      hereunder in its individual capacity. Such Person and its Affiliates may accept
      deposits from, lend money to, act as the financial advisor or in any other
      advisory capacity for and generally engage in any kind of business with the
      Borrower or any Subsidiary or other Affiliate thereof as if such Person were
      not
      the Administrative Agent hereunder and without any duty to account therefor
      to
      the Lenders.

     

    9.03 Exculpatory
      Provisions. The
      Administrative Agent shall not have any duties or obligations except those
      expressly set forth herein and in the other Loan Documents. Without limiting
      the
      generality of the foregoing, the Administrative Agent:

     

    
      
        
        

      

      
        76

        
          

        

      

      
        
        

      

    

    (a) shall
      not
      be subject to any fiduciary or other implied duties, regardless of whether
      a
      Default has occurred and is continuing;

     

    (b) shall
      not
      have any duty to take any discretionary action or exercise any discretionary
      powers, except discretionary rights and powers expressly contemplated hereby
      or
      by the other Loan Documents that the Administrative Agent is required to
      exercise as directed in writing by the Required Lenders (or such other number
      or
      percentage of the Lenders as shall be expressly provided for herein or in the
      other Loan Documents), provided
      that the
      Administrative Agent shall not be required to take any action that, in its
      opinion or the opinion of its counsel, may expose the Administrative Agent
      to
      liability or that is contrary to any Loan Document or Applicable Law;
      and

     

    (c) shall
      not, except as expressly set forth herein and in the other Loan Documents,
      have
      any duty to disclose, and shall not be liable for the failure to disclose,
      any
      information relating to the Borrower or any of its Affiliates that is
      communicated to or obtained by the Person serving as the Administrative Agent
      or
      any of its Affiliates in any capacity.

     

    The
      Administrative Agent shall not be liable for any action taken or not taken
      by it
      (i) with the consent or at the request of the Required Lenders (or such
      other number or percentage of the Lenders as shall be necessary, or as the
      Administrative Agent shall believe in good faith shall be necessary, under
      the
      circumstances as provided in Sections 10.01
      and
8.02)
      or
      (ii) in the absence of its own gross negligence or willful misconduct. The
      Administrative Agent shall be deemed not to have knowledge of any Default unless
      and until notice describing such Default is given to the Administrative Agent
      by
      the Borrower, a Lender or the L/C Issuer. The Administrative Agent shall
      promptly request any report, letter, statement or other information under
Section 6.02(b)
      or
(c)
      which
      any Lender requests the Administrative Agent to obtain.

     

    The
      Administrative Agent shall not be responsible for or have any duty to ascertain
      or inquire into (i) any statement, warranty or representation made in or in
      connection with this Agreement or any other Loan Document, (ii) the
      contents of any certificate, report or other document delivered hereunder or
      thereunder or in connection herewith or therewith, (iii) the performance or
      observance of any of the covenants, agreements or other terms or conditions
      set
      forth herein or therein or the occurrence of any Default, (iv) the
      validity, enforceability, effectiveness or genuineness of this Agreement, any
      other Loan Document or any other agreement, instrument or document or
      (v) the satisfaction of any condition set forth in Article IV or elsewhere
      herein, other than to confirm receipt of items expressly required to be
      delivered to the Administrative Agent.

     

    9.04 Reliance
      by Administrative Agent. 

     

    The
      Administrative Agent shall be entitled to rely upon, and shall not incur any
      liability for relying upon, any notice, request, certificate, consent,
      statement, instrument, document or other writing (including any electronic
      message, Internet or intranet website posting or other distribution) believed
      by
      it to be genuine and to have been signed, sent or otherwise authenticated by
      the
      proper Person. The Administrative Agent also may rely upon any statement made
      to
      it orally or by telephone and believed by it to have been made by the proper
      Person, and shall not incur any liability for relying thereon. In 

     

    
      
        
        

      

      
        77

        
          

        

      

      
        
        
determining
        compliance with any condition hereunder to the making of a Loan, or the issuance
        of a Letter of Credit, that by its terms must be fulfilled to the satisfaction
        of a Lender or the L/C Issuer, the Administrative Agent may presume that
        such
        condition is satisfactory to such Lender or the L/C Issuer unless the
        Administrative Agent shall have received notice to the contrary from such
        Lender
        or the L/C Issuer prior to the making of such Loan or the issuance of such
        Letter of Credit. The Administrative Agent may consult with legal counsel
        (who
        may be counsel for the Borrower), independent accountants and other experts
        selected by it, and shall not be liable for any action taken or not taken
        by it
        in accordance with the advice of any such counsel, accountants or
        experts.

    

     

    9.05 Delegation
      of Duties. The
      Administrative Agent may perform any and all of its duties and exercise its
      rights and powers hereunder or under any other Loan Document by or through
      any
      one or more sub-agents appointed by the Administrative Agent. The Administrative
      Agent and any such sub-agent may perform any and all of its duties and exercise
      its rights and powers by or through their respective Related Parties. The
      exculpatory provisions of this Article shall apply to any such sub-agent and
      to
      the Related Parties of the Administrative Agent and any such sub-agent, and
      shall apply to their respective activities in connection with the syndication
      of
      the credit facilities provided for herein as well as activities as
      Administrative Agent.

     

    9.06 Resignation
      of Administrative Agent. The
      Administrative Agent may at any time give notice of its resignation to the
      Lenders, the L/C Issuer and the Borrower. Upon receipt of any such notice of
      resignation, the Required Lenders shall have the right, in consultation with
      the
      Borrower, to appoint a successor, which shall be a bank with an office in the
      United States, or an Affiliate of any such bank with an office in the United
      States. If no such successor shall have been so appointed by the Required
      Lenders and shall have accepted such appointment within 30 days after the
      retiring Administrative Agent gives notice of its resignation, then the retiring
      Administrative Agent may on behalf of the Lenders and the L/C Issuer, appoint
      a
      successor Administrative Agent meeting the qualifications set forth above;
      provided
      that if
      the Administrative Agent shall notify the Borrower and the Lenders that no
      qualifying Person has accepted such appointment, then such resignation shall
      nonetheless become effective in accordance with such notice and (1) the
      retiring Administrative Agent shall be discharged from its duties and
      obligations hereunder and under the other Loan Documents (except that in the
      case of any collateral held by the Administrative Agent on behalf of the Lenders
      or the L/C Issuer under any of the Loan Documents, the retiring Administrative
      Agent shall continue to hold such collateral until such time as a successor
      Administrative Agent is appointed) and (2) all payments, communications and
      determinations provided to be made by, to or through the Administrative Agent
      shall instead be made by or to each Lender and the L/C Issuer directly, until
      such time as the Required Lenders appoint a successor Administrative Agent
      as
      provided for above in this Section. Upon the acceptance of a successor’s
      appointment as Administrative Agent hereunder, such successor shall succeed
      to
      and become vested with all of the rights, powers, privileges and duties of
      the
      retiring (or retired) Administrative Agent, and the retiring Administrative
      Agent shall be discharged from all of its duties and obligations hereunder
      or
      under the other Loan Documents (if not already discharged therefrom as provided
      above in this Section).
      The fees payable by the Borrower to a successor Administrative Agent shall
      be
      the same as those payable to its predecessor unless otherwise agreed between
      the
      Borrower and such successor. After the retiring Administrative Agent’s
      resignation hereunder and under the other Loan Documents, the provisions of
      this
      Article and Section 10.04
      shall
      continue in effect for the benefit of such retiring Administrative Agent, its
      sub-agents and their respective Related Parties in respect of any actions taken
      or omitted to be taken by any of them while the retiring Administrative Agent
      was acting as Administrative Agent.

     

    
      
        
        

      

      
        78

        
          

        

      

      
        
        

      

    

    Any
      resignation by Bank of America as Administrative Agent pursuant to this Section
      shall also constitute its resignation as L/C Issuer and Swing Line Lender.
      Upon
      the acceptance of a successor’s appointment as Administrative Agent hereunder,
      (a) such successor shall succeed to and become vested with all of the
      rights, powers, privileges and duties of the retiring L/C Issuer and Swing
      Line
      Lender, (b) the retiring L/C Issuer and Swing Line Lender shall be
      discharged from all of their respective duties and obligations hereunder or
      under the other Loan Documents, and (c) the successor L/C Issuer shall
      issue letters of credit in substitution for the Letters of Credit, if any,
      outstanding at the time of such succession or make other arrangements
      satisfactory to the retiring L/C Issuer to effectively assume the obligations
      of
      the retiring L/C Issuer with respect to such Letters of Credit.

     

    9.07 Non-Reliance
      on Administrative Agent and Other Lenders. Each
      Lender and the L/C Issuer acknowledges that it has, independently and without
      reliance upon the Administrative Agent or any other Lender or any of their
      Related Parties and based on such documents and information as it has deemed
      appropriate, made its own credit analysis and decision to enter into this
      Agreement. Each Lender and the L/C Issuer also acknowledges that it will,
      independently and without reliance upon the Administrative Agent or any other
      Lender or any of their Related Parties and based on such documents and
      information as it shall from time to time deem appropriate, continue to make
      its
      own decisions in taking or not taking action under or based upon this Agreement,
      any other Loan Document or any related agreement or any document furnished
      hereunder or thereunder.

     

    9.08 No
      Other Duties, Etc. Anything
      herein to the contrary notwithstanding, neither the Arranger, Syndication Agent
      nor any Co-Documentation Agent listed on the cover page hereof shall have any
      powers, duties or responsibilities under this Agreement or any of the other
      Loan
      Documents, except in its capacity, as applicable, as the Administrative Agent,
      a
      Lender or the L/C Issuer hereunder.

     

    9.09 Administrative
      Agent May File Proofs of Claim. In
      case
      of the pendency of any receivership, insolvency, liquidation, bankruptcy,
      reorganization, arrangement, adjustment, composition or other judicial
      proceeding relative to any Loan Party, the Administrative Agent (irrespective
      of
      whether the principal of any Loan or L/C Obligation shall then be due and
      payable as herein expressed or by declaration or otherwise and irrespective
      of
      whether the Administrative Agent shall have made any demand on the Borrower)
      shall be entitled and empowered, by intervention in such proceeding or
      otherwise

     

    (a) to
      file
      and prove a claim for the whole amount of the principal and interest owing
      and
unpaid in respect of the Loans, L/C Obligations and all other Obligations that
      are owing and unpaid and to file such other documents as may be necessary or
      advisable in order to have the claims of the Lenders, the L/C Issuer and the
      Administrative Agent (including any claim for the reasonable compensation,
      expenses, disbursements and advances of the Lenders, the L/C Issuer and the
      Administrative Agent and their respective agents and counsel and all other
      amounts due the Lenders, the L/C Issuer and the Administrative Agent under
      Sections 2.03(i)
      and
(j),
      2.09
      and
10.04)
      allowed
      in such judicial proceeding; and

     

    
      
        
        

      

      
        79

        
          

        

      

      
        
        

      

    

    (b) to
      collect and receive any monies or other property payable or deliverable on
      any
      such claims and to distribute the same;

     

    and
      any
      custodian, receiver, assignee, trustee, liquidator, sequestrator or other
      similar official in any such judicial proceeding is hereby authorized by each
      Lender and the L/C Issuer to make such payments to the Administrative Agent
      and,
      in the event that the Administrative Agent shall consent to the making of such
      payments directly to the Lenders and the L/C Issuer, to pay to the
      Administrative Agent any amount due for the reasonable compensation, expenses,
      disbursements and advances of the Administrative Agent and its agents and
      counsel, and any other amounts due the Administrative Agent under Sections 2.09
      and
10.04.

     

    Nothing
      contained herein shall be deemed to authorize the Administrative Agent to
      authorize or consent to or accept or adopt on behalf of any Lender or the L/C
      Issuer any plan of reorganization, arrangement, adjustment or composition
      affecting the Obligations or the rights of any Lender or the L/C Issuer or
      to
      authorize the Administrative Agent to vote in respect of the claim of any Lender
      or the L/C Issuer in any such proceeding.

     

    9.10 Guaranty
      Matters. The
      Lenders and the L/C Issuer irrevocably authorize the Administrative Agent,
      at
      its option and in its discretion, to release any Guarantor from its obligations
      under the Guaranty (i) if such Person ceases to be a Subsidiary as a result
      of a transaction permitted hereunder or (ii) subject to Section 10.01,
      if
      approved, authorized or ratified in writing by the Required Lenders. Upon
      request by the Administrative Agent at any time, the Required Lenders will
      confirm in writing the Administrative Agent’s authority to release any Guarantor
      from its obligations under the Guaranty pursuant to this Section 9.10.

     

    ARTICLE
      X.

    MISCELLANEOUS

     

    10.01 Amendments,
      Etc.
      No
      amendment or waiver of any provision of this Agreement or any other Loan
      Document, and no consent to any departure by the Borrower or any other Loan
      Party therefrom, shall be effective unless in writing signed by the Required
      Lenders and the Borrower or the applicable Loan Party, as the case may be,
      and
      acknowledged by the Administrative Agent, and each such waiver or consent shall
      be effective only in the specific instance and for the specific purpose for
      which given; provided,
      however,
      that no
      such amendment, waiver or consent shall:

     

    (a) waive
      any
      condition set forth in Section 4.01(a)
      without
      the written consent of each Lender;

     

    (b) extend
      or
      increase the Commitment of any Lender (or reinstate any Commitment terminated
      pursuant to Section 8.02)
      without
      the written consent of such Lender;

     

    
      
        
        

      

      
        80

        
          

        

      

      
        
        

      

    

    (c) postpone
      any scheduled date fixed by this Agreement or any other Loan Document for any
      payment (it being understood that the mandatory prepayments under Section 2.05
      do not
      provide for a scheduled date fixed for payment), of principal, interest, fees
      or
      other amounts due to the Lenders (or any of them) hereunder or under any other
      Loan Document without the written consent of each Lender directly affected
      thereby;

     

    (d) reduce
      the principal of, or the rate of interest specified herein on, any Loan or
      L/C
      Borrowing, or (subject to clause (v) of the second proviso to this Section 10.01)
      any
      fees or other amounts payable hereunder or under any other Loan Document,
      without the written consent of each Lender directly affected thereby;
provided,
      however,
      that
      only the consent of the Required Lenders shall be necessary to amend the
      definition of “Default Rate” or to waive any obligation of the Borrower to pay
      interest or Letter of Credit Fees at the Default Rate;

     

    (e) change
      Section 2.13
      or
Section 8.03
      in a
      manner that would alter the pro rata sharing of payments required thereby
      without the written consent of each Lender;

     

    (f) change
      any provision of this Section or the definition of “Required Lenders” or any
      other provision hereof specifying the number or percentage of Lenders required
      to amend, waive or otherwise modify any rights hereunder or make any
      determination or grant any consent hereunder without the written consent of
      each
      Lender; or

     

    (g) release
      all or substantially all of the value of the Guaranty without the written
      consent of each Lender, unless otherwise permitted by Section 9.10;
      

     

    and,
      provided further,
      that
      (i) no amendment, waiver or consent shall, unless in writing and signed by
      the L/C Issuer in addition to the Lenders required above, affect the rights
      or
      duties of the L/C Issuer under this Agreement or any Issuer Document relating
      to
      any Letter of Credit issued or to be issued by it; (ii) no amendment,
      waiver or consent shall, unless in writing and signed by the Swing Line Lender
      in addition to the Lenders required above, affect the rights or duties of the
      Swing Line Lender under this Agreement; (iii) no amendment, waiver or
      consent shall, unless in writing and signed by the Administrative Agent in
      addition to the Lenders required above, affect the rights or duties of the
      Administrative Agent under this Agreement or any other Loan Document;
      (iv) Section 10.06(h)
      may not
      be amended, waived or otherwise modified without the consent of each Granting
      Lender all or any part of whose Loans are being funded by an SPC at the time
      of
      such amendment, waiver or other modification; and (v) the Fee Letter may be
      amended, or rights or privileges thereunder waived, in a writing executed only
      by the parties thereto. Notwithstanding anything to the contrary herein, no
      Defaulting Lender shall have any right to approve or disapprove any amendment,
      waiver or consent hereunder, except that the Commitment of such Lender may
      not
      be increased or extended without the consent of such Lender.

     

    10.02 Notices;
      Effectiveness; Electronic Communication. 

     

    (a) Notices
      Generally.
      Except
      in the case of notices and other communications expressly permitted to be given
      by telephone (and except as provided in subsection (b) below), all notices
      and other communications provided for herein shall be in writing and shall
      be
      delivered by hand or overnight courier service, mailed by certified or
      registered mail or sent by telecopier as follows, and all notices and other
      communications expressly permitted hereunder to be given by telephone shall
      be
      made to the applicable telephone number, as follows:

     

    
      
        
        

      

      
        81

        
          

        

      

      
        
        

      

    

    (i) if
      to the
      Borrower, the Administrative Agent, the L/C Issuer or the Swing Line Lender,
      to
      the address, telecopier number, electronic mail address or telephone number
      specified for such Person on Schedule 10.02;
      and

     

    (ii) if
      to any
      other Lender, to the address, telecopier number, electronic mail address or
      telephone number specified in its Administrative Questionnaire.

     

    Notices
      sent by hand or overnight courier service, or mailed by certified or registered
      mail, shall be deemed to have been given when received; notices sent by
      telecopier shall be deemed to have been given when sent (except that, if not
      given during normal business hours for the recipient, shall be deemed to have
      been given at the opening of business on the next business day for the
      recipient). Notices delivered through electronic communications to the extent
      provided in subsection (b) below, shall be effective as provided in such
      subsection (b).

     

    (b) Electronic
      Communications.
      Notices
      and other communications to the Lenders and the L/C Issuer hereunder may be
      delivered or furnished by electronic communication (including e-mail and
      Internet or intranet websites) pursuant to procedures approved by the
      Administrative Agent, provided
      that the
      foregoing shall not apply to notices to any Lender or the L/C Issuer pursuant
      to
Article II
      if such
      Lender or the L/C Issuer, as applicable, has notified the Administrative Agent
      that it is incapable of receiving notices under such Article by electronic
      communication. The Administrative Agent or the Borrower may, in its discretion,
      agree to accept notices and other communications to it hereunder by electronic
      communications pursuant to procedures approved by it, provided
      that
      approval of such procedures may be limited to particular notices or
      communications.

     

    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 acknowledgement from the intended recipient (such as by
      the “return receipt requested” function, as available, return e-mail or other
      written acknowledgement), provided
      that if
      such notice or other communication is not sent during the normal business hours
      of the recipient, such notice or communication shall be deemed to have been
      sent
      at the opening of business on the next business day for the recipient, 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.

     

    (c) THE
      PLATFORM.
      THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT PARTIES (AS
      DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER
      MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY
      FOR
      ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS. NO WARRANTY OF ANY KIND,
      EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY,
      FITNESS FOR A PARTICULAR 

     

    
      
        
        

      

      
        82

        
          

        

      

      
        
        
PURPOSE,
        NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE
        DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS
        OR
        THE PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT OR ANY OF ITS RELATED
        PARTIES (COLLECTIVELY, THE “AGENT
        PARTIES”)
        HAVE ANY LIABILITY TO THE BORROWER, ANY LENDER, THE L/C ISSUER OR ANY OTHER
        PERSON FOR LOSSES, CLAIMS, DAMAGES, LIABILITIES OR EXPENSES OF ANY KIND (WHETHER
        IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF THE BORROWER’S OR THE
        ADMINISTRATIVE AGENT’S TRANSMISSION OF BORROWER MATERIALS THROUGH THE INTERNET,
        EXCEPT TO THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES, LIABILITIES OR EXPENSES
        ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY A FINAL AND NONAPPEALABLE
        JUDGMENT TO HAVE RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT
        OF
        SUCH AGENT PARTY; PROVIDED,
        HOWEVER,
        THAT IN NO EVENT SHALL ANY AGENT PARTY HAVE ANY LIABILITY TO THE BORROWER,
        ANY
        LENDER, THE L/C ISSUER OR ANY OTHER PERSON FOR INDIRECT, SPECIAL, INCIDENTAL,
        CONSEQUENTIAL OR PUNITIVE DAMAGES (AS OPPOSED TO DIRECT OR ACTUAL
        DAMAGES).

    

     

    (d) Change
      of Address, Etc.
      Each of
      the Borrower, the Administrative Agent, the L/C Issuer and the Swing Line Lender
      may change its address (including its e-mail address), telecopier or telephone
      number for notices and other communications hereunder by notice to the other
      parties hereto. Each other Lender may change its address (including its e-mail
      address), telecopier or telephone number for notices and other communications
      hereunder by notice to the Borrower, the Administrative Agent, the L/C Issuer
      and the Swing Line Lender. In addition, each Lender agrees to notify the
      Administrative Agent from time to time to ensure that the Administrative Agent
      has on record (i) an effective address, contact name, telephone number,
      telecopier number and electronic mail address to which notices and other
      communications may be sent and (ii) accurate wire instructions for such
      Lender. Furthermore, each Public Lender agrees to cause at least one individual
      at or on behalf of such Public Lender to at all times have selected the “Private
      Side Information” or similar designation on the content declaration screen of
      the Platform in order to enable such Public Lender or its delegate, in
      accordance with such Public Lender’s compliance procedures and applicable Law,
      including United States Federal and state securities Laws, to make reference
      to
      Borrower Materials that are not made available through the “Public Side
      Information” portion of the Platform and that may contain material non-public
      information with respect to the Borrower or its securities for purposes of
      United States Federal or state securities laws.

     

    (e) Reliance
      by Administrative Agent, L/C Issuer and Lenders. The
      Administrative Agent, the L/C Issuer and the Lenders shall be entitled to rely
      and act upon any notices (including telephonic Revolving Loan Notices and Swing
      Line Loan Notices) purportedly given by or on behalf of the Borrower even if
      (i) such notices were not made in a manner specified herein, were
      incomplete or were not preceded or followed by any other form of notice
      specified herein, or (ii) the terms thereof, as understood by the
      recipient, varied from any confirmation thereof. The Borrower shall indemnify
      the 

     

    
      
        
        

      

      
        83

        
          

        

      

      
        
        
Administrative
        Agent, the L/C Issuer, each Lender and the Related Parties of each of them
        from
        all losses, costs, expenses and liabilities resulting from the reliance by
        such
        Person on each notice purportedly given by or on behalf of the Borrower.
        All
        telephonic notices to and other telephonic communications with the
        Administrative Agent may be recorded by the Administrative Agent, and each
        of
        the parties hereto hereby consents to such recording.

    

     

    10.03 No
      Waiver; Cumulative Remedies.
      No
      failure by any Lender, the L/C Issuer or the Administrative Agent to exercise,
      and no delay by any such Person in exercising, any right, remedy, power or
      privilege hereunder shall operate as a waiver thereof; nor shall any single
      or
      partial exercise of any right, remedy, power or privilege hereunder preclude
      any
      other or further exercise thereof or the exercise of any other right, remedy,
      power or privilege. The rights, remedies, powers and privileges herein provided
      are cumulative and not exclusive of any rights, remedies, powers and privileges
      provided by law.

     

    10.04 Expenses;
      Indemnity; Damage Waiver. 

     

    (a) Costs
      and Expenses.
      The
      Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by
      the Administrative Agent and its Affiliates (including the reasonable fees,
      charges and disbursements of counsel for the Administrative Agent), in
      connection with the syndication of the credit facilities provided for herein,
      the preparation, negotiation, execution, delivery and administration of this
      Agreement and the other Loan Documents or any amendments, modifications or
      waivers of the provisions hereof or thereof (whether or not the transactions
      contemplated hereby or thereby shall be consummated), (ii) all reasonable
      out-of-pocket expenses incurred by the L/C Issuer in connection with the
      issuance, amendment, renewal or extension of any Letter of Credit or any demand
      for payment thereunder and (iii) all out-of-pocket expenses incurred by the
      Administrative Agent, any Lender or the L/C Issuer (including the reasonable
      fees, charges and disbursements of any counsel for the Administrative Agent,
      any
      Lender or the L/C Issuer), and shall pay all reasonable legal fees and time
      charges for attorneys who may be employees of the Administrative Agent, any
      Lender or the L/C Issuer, in connection with the enforcement or protection
      of
      its rights (A) in connection with this Agreement and the other Loan Documents,
      including its rights under this Section, or (B) in connection with the Loans
      made or Letters of Credit issued hereunder, including all such out-of-pocket
      expenses incurred during any workout, restructuring or negotiations in respect
      of such Loans or Letters of Credit.

     

    (b) Indemnification
      by the Borrower.
      The
      Borrower shall indemnify the Administrative Agent (and any sub-agent thereof),
      each Lender and the L/C Issuer, and each Related Party of any of the foregoing
      Persons (each such Person being called an “Indemnitee”)
      against, and hold each Indemnitee harmless from, any and all losses, claims,
      damages, liabilities and related expenses (including the reasonable fees,
      charges and disbursements of any counsel for any Indemnitee), and shall
      indemnify and hold harmless each Indemnitee from all reasonable fees and time
      charges and disbursements for attorneys who may be employees of the Indemnitee,
      incurred by any Indemnitee or asserted against any Indemnitee by any third
      party
      or by the Borrower or any other Loan Party arising out of, in connection with,
      or as a result of (i) the execution or delivery of this Agreement, any
      other Loan Document or any agreement or instrument contemplated hereby or
      thereby, the performance by the parties hereto of their 

     

    
      
        
        

      

      
        84

        
          

        

      

      
        
        
respective
        obligations hereunder or thereunder, the consummation of the transactions
        contemplated hereby or thereby, or, in the case of the Administrative Agent
        (and
        any sub-agent thereof) and its Related Parties only, the administration of
        this
        Agreement and the other Loan Documents, (ii) any Loan or Letter of Credit
        or the use or proposed use of the proceeds therefrom (including any refusal
        by
        the L/C Issuer to honor a demand for payment under a Letter of Credit if
        the
        documents presented in connection with such demand do not strictly comply
        with
        the terms of such Letter of Credit), (iii) any actual or alleged presence
        or release of Hazardous Materials on or from any property owned or operated
        by
        the Borrower or any of its Subsidiaries, or any Environmental Liability related
        in any way to the Borrower or any of its Subsidiaries, or (iv) any actual
        or prospective claim, litigation, investigation or proceeding relating to
        any of
        the foregoing, whether based on contract, tort or any other theory, whether
        brought by a third party or by the Borrower or any other Loan Party, and
        regardless of whether any Indemnitee is a party thereto,
        IN
        ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT
        OF THE
        COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF THE
        INDEMNITEE;
        provided
        that
        such indemnity shall not, as to any Indemnitee, be available to the extent
        that
        such losses, claims, damages, liabilities or related expenses (x) are
        determined by a court of competent jurisdiction by final and nonappealable
        judgment to have resulted from the gross negligence or willful misconduct
        of
        such Indemnitee or (y) result from a claim brought by the Borrower or any
        other Loan Party against an Indemnitee for breach in bad faith of such
        Indemnitee’s obligations hereunder or under any other Loan Document, if the
        Borrower or such Loan Party has obtained a final and nonappealable judgment
        in
        its favor on such claim as determined by a court of competent
        jurisdiction.

    

     

    (c) Reimbursement
      by Lenders.
      To the
      extent that the Borrower for any reason fails to indefeasibly pay any amount
      required under subsection (a) or (b) of this Section to be paid by it to
      the Administrative Agent (or any sub-agent thereof), the L/C Issuer or any
      Related Party of any of the foregoing, each Lender severally agrees to pay
      to
      the Administrative Agent (or any such sub-agent), the L/C Issuer or such Related
      Party, as the case may be, such Lender’s Applicable Percentage (determined as of
      the time that the applicable unreimbursed expense or indemnity payment is
      sought) of such unpaid amount, provided
      that the
      unreimbursed expense or indemnified loss, claim, damage, liability or related
      expense, as the case may be, was incurred by or asserted against the
      Administrative Agent (or any such sub-agent) or the L/C Issuer in its capacity
      as such, or against any Related Party of any of the foregoing acting for the
      Administrative Agent (or any such sub-agent) or L/C Issuer in connection with
      such capacity. The obligations of the Lenders under this subsection (c) are
      subject to the provisions of Section 2.11(d).

     

    (d) WAIVER
      OF CONSEQUENTIAL DAMAGES, ETC.
      TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE 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 LOAN DOCUMENT OR ANY AGREEMENT OR INSTRUMENT
      CONTEMPLATED HEREBY, THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, ANY LOAN
      OR LETTER OF CREDIT OR THE USE OF THE PROCEEDS THEREOF. NO INDEMNITEE REFERRED
      TO IN 

     

    
      
        
        

      

      
        85

        
          

        

      

      
        
        
SUBSECTION (b)
        ABOVE SHALL BE LIABLE FOR ANY DAMAGES ARISING FROM THE USE 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 LOAN DOCUMENTS OR THE TRANSACTIONS
        CONTEMPLATED HEREBY OR THEREBY OTHER THAN FOR DIRECT OR ACTUAL DAMAGES RESULTING
        FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNITEE AS DETERMINED
        BY A FINAL AND NONAPPEALABLE JUDGMENT OF A COURT OF COMPETENT
        JURISDICTION.

    

     

    (e) Payments.
      All
      amounts due under this Section shall be payable not later than ten Business
      Days
      after demand therefor.

     

    (f) Survival.
      The
      agreements in this Section shall survive the resignation of the Administrative
      Agent, the L/C Issuer and the Swing Line Lender, the replacement of any Lender,
      the termination of the Aggregate Commitments and the repayment, satisfaction
      or
      discharge of all the other Obligations.

     

    10.05 Payments
      Set Aside. To
      the
      extent that any payment by or on behalf of the Borrower is made to the
      Administrative Agent, the L/C Issuer or any Lender, or the Administrative Agent,
      the L/C Issuer or any Lender exercises its right of setoff, and such payment
      or
      the proceeds of such setoff or any part thereof is subsequently invalidated,
      declared to be fraudulent or preferential, set aside or required (including
      pursuant to any settlement entered into by the Administrative Agent, the L/C
      Issuer or such Lender in its discretion) to be repaid to a trustee, receiver
      or
      any other party, in connection with any proceeding under any Debtor Relief
      Law
      or otherwise, then (a) to the extent of such recovery, the obligation or
      part thereof originally intended to be satisfied shall be revived and continued
      in full force and effect as if such payment had not been made or such setoff
      had
      not occurred, and (b) each Lender and the L/C Issuer severally agrees to
      pay to the Administrative Agent upon demand its applicable share (without
      duplication) of any amount so recovered from or repaid by the Administrative
      Agent, plus interest thereon from the date of such demand to the date such
      payment is made at a rate per annum equal to the Federal Funds Rate from time
      to
      time in effect. The obligations of the Lenders and the L/C Issuer under
      clause (b) of the preceding sentence shall survive the payment in full of
      the Obligations and the termination of this Agreement.

     

    10.06 Successors
      and Assigns. 

     

    (a) Successors
      and Assigns Generally.
      The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the parties hereto and their respective successors and assigns permitted hereby,
      except that neither the Borrower nor any other Loan Party may assign or
      otherwise transfer any of its rights or obligations hereunder without the prior
      written consent of the Administrative Agent and each Lender and no Lender may
      assign or otherwise transfer any of its rights or obligations hereunder except
      (i) to an Eligible Assignee in accordance with the provisions of
      subsection (b) of this Section, (ii) by way of participation in
      accordance with the provisions of subsection (d) of this Section,
      (iii) by way of pledge or assignment of a security interest subject to the
      restrictions of subsection (f) of this 

     

    
      
        
        

      

      
        86

        
          

        

      

      
        
        
Section,
        or (iv) to an SPC in accordance with the provisions of subsection (h)
        of this Section (and any other attempted assignment or transfer by any party
        hereto shall be null and void). Nothing in this Agreement, expressed or implied,
        shall be construed to confer upon any Person (other than the parties hereto,
        their respective successors and assigns permitted hereby, Participants to
        the
        extent provided in subsection (d) of this Section and, to the extent
        expressly contemplated hereby, the Related Parties of each of the Administrative
        Agent, the L/C Issuer and the Lenders) any legal or equitable right, remedy
        or
        claim under or by reason of this Agreement.

    

     

    (b) Assignments
      by Lenders.
      Any
      Lender may at any time assign to one or more Eligible Assignees all or a portion
      of its rights and obligations under this Agreement (including all or a portion
      of its Commitment and the Loans (including for purposes of this
      subsection (b), participations in L/C Obligations and in Swing Line Loans)
      at the time owing to it); provided
      that

     

    (i) except
      in
      the case of an assignment of the entire remaining amount of the assigning
      Lender’s Commitment and the Loans at the time owing to it or in the case of an
      assignment to a Lender or an Affiliate of a Lender or an Approved Fund with
      respect to a Lender, the aggregate amount of the Commitment (which for this
      purpose includes Loans outstanding thereunder) or, if the Commitment is not
      then
      in effect, the principal outstanding balance of the Loans of the assigning
      Lender subject to each such assignment, determined as of the date the Assignment
      and Assumption with respect to such assignment is delivered to the
      Administrative Agent or, if “Trade Date” is specified in the Assignment and
      Assumption, as of the Trade Date, shall not be less than $5,000,000, unless
      each of the Administrative Agent and, so long as no Event of Default has
      occurred and is continuing, the Borrower otherwise consents (each such consent
      not to be unreasonably withheld or delayed); provided,
      however,
      that
      concurrent assignments to members of an Assignee Group and concurrent
      assignments from members of an Assignee Group to a single Eligible Assignee
      (or
      to an Eligible Assignee and members of its Assignee Group) will be treated
      as a
      single assignment for purposes of determining whether such minimum amount has
      been met;

     

    (ii) each
      partial assignment shall be made as an assignment of a proportionate part of
      all
      the assigning Lender’s rights and obligations under this Agreement with respect
      to the Loans or the Commitment assigned, except that this clause (ii) shall
      not apply to the Swing Line Lender’s rights and obligations in respect of Swing
      Line Loans;

     

    (iii) any
      assignment of a Commitment must be approved by the Borrower (provided no Event
      of Default has occurred and is continuing, and provided such approval shall
      not
      be unreasonably withheld or delayed) Administrative Agent, the L/C Issuer and
      the Swing Line Lender unless the Person that is the proposed assignee is itself
      a Lender (whether or not the proposed assignee would otherwise qualify as an
      Eligible Assignee); and

     

    
      
        
        

      

      
        87

        
          

        

      

      
        
        

      

    

    (iv) the
      parties to each assignment shall execute and deliver to the Administrative
      Agent
      an Assignment and Assumption, together with a processing and recordation fee
      in
      the amount of $3,500; provided,
      however,
      that
      the Administrative Agent may, in its sole discretion, elect to waive such
      processing and recordation fee in the case of any assignment, and the Eligible
      Assignee, if it shall not be a Lender, shall deliver to the Administrative
      Agent
      an Administrative Questionnaire.

     

    Subject
      to acceptance and recording thereof by the Administrative Agent pursuant to
      subsection (c) of this Section, from and after the effective date specified
      in each Assignment and Assumption, the Eligible Assignee thereunder shall be
      a
      party to this Agreement and, to the extent of the interest assigned by such
      Assignment and Assumption, have the rights and obligations of a Lender under
      this Agreement, and the assigning Lender thereunder shall, to the extent of
      the
      interest assigned by such Assignment and Assumption, be released from its
      obligations under this Agreement (and, in the case of an Assignment and
      Assumption covering all of the assigning Lender’s rights and obligations under
      this Agreement, such Lender shall cease to be a party hereto) but shall continue
      to be entitled to the benefits of Sections 3.01,
      3.04,
      3.05,
      and
10.04
      with
      respect to facts and circumstances occurring prior to the effective date of
      such
      assignment. Upon request, the Borrower (at its expense) shall execute and
      deliver a Note to the assignee Lender. Any assignment or transfer by a Lender
      of
      rights or obligations under this Agreement that does not comply with this
      subsection shall be treated for purposes of this Agreement as a sale by such
      Lender of a participation in such rights and obligations in accordance with
      subsection (d) of this Section.

     

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

     

    (d) Participations.
      Any
      Lender may at any time, without the consent of, or notice to, the Borrower
      or
      the Administrative Agent, sell participations to any Person (other than a
      natural person or the Borrower or any of the Borrower’s Affiliates or
      Subsidiaries) (each, a “Participant”)
      in all
      or a portion of such Lender’s rights and/or obligations under this Agreement
      (including all or a portion of its Revolving Commitment and/or the Loans
      (including such Lender’s participations in L/C Obligations and/or Swing Line
      Loans) owing to it); provided
      that
      (i) such Lender’s obligations under this Agreement shall remain unchanged,
      (ii) such Lender shall remain solely responsible to the other parties
      hereto for the performance of such obligations and (iii) the Borrower, the
      Administrative Agent, the Lenders and the L/C Issuer shall continue to deal
      solely and directly with such Lender in connection with such Lender’s rights and
      obligations under this Agreement.

     

    
      
        
        

      

      
        88

        
          

        

      

      
        
        

      

    

    Any
      agreement or instrument pursuant to which a Lender sells such a participation
      shall provide that such Lender shall retain the sole right to enforce this
      Agreement and to approve any amendment, modification or waiver of any provision
      of this Agreement; provided
      that
      such agreement or instrument may provide that such Lender will not, without
      the
      consent of the Participant, agree to any amendment, waiver or other modification
      described in the first proviso to Section
      10.01
      that
      affects such Participant. Subject to subsection (e) of this Section, the
      Borrower agrees that each Participant shall be entitled to the benefits of
      Sections
      3.01,
      3.04
      and
3.05 to
      the
      same extent as if it were a Lender and had acquired its interest by assignment
      pursuant to subsection (b) of this Section. To the extent permitted by law,
      each
      Participant also shall be entitled to the benefits of Section 10.08 as
      though
      it were a Lender, provided
      such
      Participant agrees to be subject to Section
      2.13
      as
      though it were a Lender.

     

    (e) Limitations
      upon Participant Rights.
      A
      Participant shall not be entitled to receive any greater payment under
Section 3.01
      or
3.04 than
      the
      applicable Lender would have been entitled to receive with respect to the
      participation sold to such Participant, unless the sale of the participation
      to
      such Participant is made with the Borrower’s prior written consent. A
      Participant that would be a Foreign Lender if it were a Lender shall not be
      entitled to the benefits of Section 3.01
      unless
      the Borrower is notified of the participation sold to such Participant and
      such
      Participant agrees, for the benefit of the Borrower, to comply with Section
      3.01(e)
      as
      though it were a Lender and performs such agreement.

     

    (f) Certain
      Pledges.
      Any
      Lender may at any time pledge or assign a security interest in all or any
      portion of its rights under this Agreement (including under its Note, if any)
      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.

     

    (g) Electronic
      Execution of Assignments.
      The
      words “execution,” “signed,” “signature,” and words of like import in any
      Assignment and Assumption shall be deemed to include electronic signatures
      or
      the keeping of records in electronic form, each of which shall be of the same
      legal effect, validity or enforceability as a manually executed signature or
      the
      use of a paper-based recordkeeping system, as the case may be, to the extent
      and
      as provided for in any Applicable Law, including the Federal Electronic
      Signatures in Global and National Commerce Act, the New York State Electronic
      Signatures and Records Act, or any other similar state laws based on the Uniform
      Electronic Transactions Act.

     

    (h) Special
      Purpose Funding Vehicles.
      Notwithstanding anything to the contrary contained herein, any Lender (a
“Granting
      Lender”)
      may
      grant to a special purpose funding vehicle identified as such in writing from
      time to time by the Granting Lender to the Administrative Agent and the Borrower
      (an “SPC”)
      the
      option to provide all or any part of any Loan that such Granting Lender would
      otherwise be obligated to make pursuant to this Agreement; provided
      that
      (i) nothing herein shall constitute a commitment by any SPC to fund any
      Loan, and (ii) if an SPC elects not to exercise such option or otherwise
      fails to make all or any part of such Loan, the Granting Lender shall be
      obligated to make such Loan pursuant to the terms hereof or, if it fails to
      do
      so, to make such payment to the Administrative Agent as is 

     

    
      
        
        

      

      
        89

        
          

        

      

      
        
        
required
        under Section 2.12(b)(ii).
        Each
        party hereto hereby agrees that (i) neither the grant to any SPC nor the
        exercise by any SPC of such option shall increase the costs or expenses or
        otherwise increase or change the obligations of the Borrower under this
        Agreement (including its obligations under Section 3.04),
        (ii) no SPC shall be liable for any indemnity or similar payment obligation
        under this Agreement for which a Lender would be liable, and (iii) the
        Granting Lender shall for all purposes, including the approval of any amendment,
        waiver or other modification of any provision of any Loan Document, remain
        the
        lender of record hereunder. The making of a Loan by an SPC hereunder shall
        utilize the Commitment of the Granting Lender to the same extent, and as
        if,
        such Loan were made by such Granting Lender. In furtherance of the foregoing,
        each party hereto hereby agrees (which agreement shall survive the termination
        of this Agreement) that, prior to the date that is one year and one day after
        the payment in full of all outstanding commercial paper or other senior debt
        of
        any SPC, it will not institute against, or join any other Person in instituting
        against, such SPC any bankruptcy, reorganization, arrangement, insolvency,
        or
        liquidation proceeding under the laws of the United States or any State thereof.
        Notwithstanding anything to the contrary contained herein, any SPC may
        (i) with notice to, but without prior consent of the Borrower and the
        Administrative Agent and with the payment of a processing fee in the amount
        of
        $3,500 (which processing fee may be waived by the Administrative Agent in
        its
        sole discretion), assign all or any portion of its right to receive payment
        with
        respect to any Loan to the Granting Lender and (ii) disclose on a
        confidential basis any non-public information relating to its funding of
        Loans
        to any rating agency, commercial paper dealer or provider of any surety or
        Guarantee or credit or liquidity enhancement to such SPC.

    

     

    (i) Resignation
      as L/C Issuer or Swing Line Lender after Assignment.
      Notwithstanding anything to the contrary contained herein, if at any time Bank
      of America assigns all of its Commitment and Loans pursuant to
      subsection (b) above, Bank of America may, (i) upon 30 days’ notice to
      the Borrower and the Lenders, resign as L/C Issuer and/or (ii) upon 30
      days’ notice to the Borrower, resign as Swing Line Lender. In the event of any
      such resignation as L/C Issuer or Swing Line Lender, the Borrower shall be
      entitled to appoint from among the Lenders a successor L/C Issuer or Swing
      Line
      Lender hereunder; provided,
      however,
      that no
      failure by the Borrower to appoint any such successor shall affect the
      resignation of Bank of America as L/C Issuer or Swing Line Lender, as the case
      may be. If Bank of America resigns as L/C Issuer, it shall retain all the
      rights, powers, privileges and duties of the L/C Issuer hereunder with respect
      to all Letters of Credit outstanding as of the effective date of its resignation
      as L/C Issuer and all L/C Obligations with respect thereto (including the right
      to require the Lenders to make Base Rate Loans or fund risk participations
      in
      Unreimbursed Amounts pursuant to Section 2.03(c)).
      If
      Bank of America resigns as Swing Line Lender, it shall retain all the rights
      of
      the Swing Line Lender provided for hereunder with respect to Swing Line Loans
      made by it and outstanding as of the effective date of such resignation,
      including the right to require the Lenders to make Base Rate Loans or fund
      risk
      participations in outstanding Swing Line Loans pursuant to Section 2.04(c).
      Upon
      the appointment of a successor L/C Issuer and/or Swing Line Lender,
      (a) such successor shall succeed to and become vested with all of the
      rights, powers, privileges and duties of the retiring L/C Issuer or Swing Line
      Lender, as the case may be, and (b) the successor L/C Issuer shall issue
      letters of credit in substitution for the Letters of Credit, if any, outstanding
      at the time of such succession or make other arrangements satisfactory to Bank
      of America to effectively assume the obligations of Bank of America with respect
      to such Letters of Credit.

     

    
      
        
        

      

      
        90

        
          

        

      

      
        
        

      

    

    10.07 Treatment
      of Certain Information; Confidentiality. Each
      of
      the Administrative Agent, the Lenders and the L/C Issuer agrees to maintain
      the
      confidentiality of the Information (as defined below), except that Information
      may be disclosed (a) to its Affiliates and to its and its Affiliates’
respective partners, directors, officers, employees, agents, advisors and
      representatives (it being understood that the Persons to whom such disclosure
      is
      made will be informed of the confidential nature of such Information and
      instructed to keep such Information confidential), (b) to the extent
      requested by any regulatory authority purporting to have jurisdiction over
      it
      (including any self-regulatory authority, such as the National Association
      of
      Insurance Commissioners), (c) to the extent required by Applicable Laws or
      regulations or by any subpoena or similar legal process, (d) to any other
      party hereto, (e) as reasonably required in connection with the exercise of
      any remedies hereunder or under any other Loan Document or any action or
      proceeding relating to this Agreement or any other Loan Document or the
      enforcement of rights hereunder or thereunder, (f) subject to an agreement
      containing provisions substantially the same as those of this Section, to
      (i) any assignee of or Participant in, or any prospective assignee of or
      Participant in, any of its rights or obligations under this Agreement or any
      Eligible Assignee invited to be a Lender pursuant to Section 2.14(c)
      or
      (ii) any actual or prospective counterparty (or its advisors) to any swap
      or derivative transaction relating to the Borrower and its obligations,
      (g) with the consent of the Borrower or (h) to the extent such
      Information (x) becomes publicly available other than as a result of a
      breach of this Section or (y) becomes available to the Administrative
      Agent, any Lender, the L/C Issuer or any of their respective Affiliates on
      a
      nonconfidential basis from a source other than the Borrower.

     

    For
      purposes of this Section, “Information”
means
      all information received from the Borrower or any Subsidiary relating to the
      Borrower or any Subsidiary or any of their respective businesses, other than
      any
      such information that is available to the Administrative Agent, any Lender
      or
      the L/C Issuer on a nonconfidential basis prior to disclosure by the Borrower
      or
      any Subsidiary, provided
      that, in
      the case of information received from the Borrower or any Subsidiary after
      the
      date hereof, such information is clearly identified at the time of delivery
      as
      confidential. Any Person required to maintain the confidentiality of Information
      as provided in this Section shall be considered to have complied with its
      obligation to do so if such Person has exercised the same degree of care to
      maintain the confidentiality of such Information as such Person would accord
      to
      its own confidential information.

     

    Each
      of
      the Administrative Agent, the Lenders and the L/C Issuer acknowledges that
      (a) the Information may include material non-public information concerning
      the Borrower or a Subsidiary, as the case may be, (b) it has developed
      compliance procedures regarding the use of material non-public information
      and
      (c) it will handle such material non-public information in accordance with
      applicable Law, including Federal and state securities Laws.

     

    10.08 Right
      of Setoff. If
      an
      Event of Default shall have occurred and be continuing, each Lender, the L/C
      Issuer and each of their respective Affiliates is hereby authorized at any
      time
      and from time to time, after obtaining the prior written consent of the
      Administrative Agent, to the fullest extent permitted by Applicable Law, to
      set
      off and apply any and all deposits (general or special, time or demand,

     

    
      
        
        

      

      
        91

        
          

        

      

      
        
        
provisional
        or final, in whatever currency) at any time held and other obligations (in
        whatever currency) at any time owing by such Lender, the L/C Issuer or any
        such
        Affiliate to or for the credit or the account of the Borrower or any other
        Loan
        Party against any and all of the obligations of the Borrower or such Loan
        Party
        now or hereafter existing under this Agreement or any other Loan Document
        to
        such Lender or the L/C Issuer, irrespective of whether or not such Lender
        or the
        L/C Issuer shall have made any demand under this Agreement or any other Loan
        Document and although such obligations of the Borrower or such Loan Party
        may be
        owed to a branch or office of such Lender or the L/C Issuer different from
        the
        branch or office holding such deposit or obligated on such indebtedness.
        The
        rights of each Lender, the L/C Issuer and their respective Affiliates under
        this
        Section are in addition to other rights and remedies (including other rights
        of
        setoff) that such Lender, the L/C Issuer or their respective Affiliates may
        have. Each Lender and the L/C Issuer agrees to notify the Borrower and the
        Administrative Agent promptly after any such setoff and application,
provided
        that the
        failure to give such notice shall not affect the validity of such setoff
        and
        application.

    

     

    10.09 Interest
      Rate Limitation. Notwithstanding
      anything to the contrary contained in any Loan Document, the interest paid
      or
      agreed to be paid under the Loan Documents shall not exceed the Highest Lawful
      Rate. If the Administrative Agent or any Lender shall receive interest in an
      amount that exceeds the Highest Lawful Rate, the excess interest shall be
      applied to the principal of the Loans or, if it exceeds such unpaid principal,
      refunded to the Borrower. In determining whether the interest contracted for,
      charged, or received by the Administrative Agent or a Lender exceeds the Highest
      Lawful Rate, such Person may, to the extent permitted by applicable Law, (a)
      characterize any payment that is not principal as an expense, fee, or premium
      rather than interest, (b) exclude voluntary prepayments and the effects thereof,
      and (c) amortize, prorate, allocate, and spread in equal or unequal parts the
      total amount of interest throughout the contemplated term of the Obligations
      hereunder.

     

    10.10 Counterparts;
      Integration; Effectiveness. This
      Agreement may be executed in counterparts (and by different parties hereto
      in
      different counterparts), each of which shall constitute an original, but all
      of
      which when taken together shall constitute a single contract. This Agreement
      and
      the other Loan Documents constitute the entire contract among the parties
      relating to the subject matter hereof and supersede any and all previous
      agreements and understandings, oral or written, relating to the subject matter
      hereof. Except as provided in Section 4.01,
      this
      Agreement shall become effective when it shall have been executed by the
      Administrative Agent and when the Administrative Agent shall have received
      counterparts hereof that, when taken together, bear the signatures of each
      of
      the other parties hereto. Delivery of an executed counterpart of a signature
      page of this Agreement by telecopy shall be effective as delivery of a manually
      executed counterpart of this Agreement.

     

    10.11 Survival
      of Representations and Warranties. All
      representations and warranties made hereunder and in any other Loan Document
      or
      other document delivered pursuant hereto or thereto or in connection herewith
      or
      therewith shall survive the execution and delivery hereof and thereof. Such
      representations and warranties have been or will be relied upon by the
      Administrative Agent and each Lender, regardless of any investigation made
      by
      the Administrative Agent or any Lender or on their behalf and notwithstanding
      that the Administrative Agent or any Lender may have had notice or knowledge
      of
      any Default at the time of any Credit Extension, and shall continue in full
      force and effect as long as any Loan or any other Obligations hereunder shall
      remain unpaid or unsatisfied or any Letter of Credit shall remain
      outstanding.

     

    
      
        
        

      

      
        92

        
          

        

      

      
        
        

      

    

    10.12 Severability.
      If
      any
      provision of this Agreement or the other Loan Documents is held to be illegal,
      invalid or unenforceable, (a) the legality, validity and enforceability of
      the remaining provisions of this Agreement and the other Loan Documents shall
      not be affected or impaired thereby and (b) the parties shall endeavor in
      good faith negotiations to replace the illegal, invalid or unenforceable
      provisions with valid provisions the economic effect of which comes as close
      as
      possible to that of the illegal, invalid or unenforceable provisions. The
      invalidity of a provision in a particular jurisdiction shall not invalidate
      or
      render unenforceable such provision in any other jurisdiction.

     

    10.13 Replacement
      of Lenders. If
      any
      Lender requests compensation under Section 3.04,
      or if
      the Borrower is required to pay any additional amount to any Lender or any
      Governmental Authority for the account of any Lender pursuant to Section 3.01,
      or if
      any
      Lender is a Defaulting Lender or if any other circumstance exists hereunder
      that
      gives the Borrower the right to replace a Lender as a party hereto, then the
      Borrower may, at its sole expense and effort, upon notice to such Lender and
      the
      Administrative Agent, require such Lender to assign and delegate, without
      recourse (in accordance with and subject to the restrictions contained in,
      and
      consents required by, Section 10.06),
      all of
      its interests, rights and obligations under this Agreement and the related
      Loan
      Documents to an assignee that shall assume such obligations (which assignee
      may
      be another Lender, if a Lender accepts such assignment), provided
      that:

     

    (a) the
      Borrower shall have paid to the Administrative Agent the assignment fee
      specified in Section 10.06(b);

     

    (b) such
      Lender shall have received payment of an amount equal to the outstanding
      principal of its Loans and L/C Advances, accrued interest thereon, accrued
      fees
      and all other amounts payable to it hereunder and under the other Loan Documents
      (including any amounts under Section 3.05)
      from
      the assignee (to the extent of such outstanding principal and accrued interest
      and fees) or the Borrower (in the case of all other amounts);

     

    (c) in
      the
      case of any such assignment resulting from a claim for compensation under
Section 3.04
      or
      payments required to be made pursuant to Section 3.01,
      such
      assignment will result in a reduction in such compensation or payments
      thereafter; and

     

    (d) such
      assignment does not conflict with applicable Laws.

     

    A
      Lender
      shall not be required to make any such assignment or delegation if, prior
      thereto, as a result of a waiver by such Lender or otherwise, the circumstances
      entitling the Borrower to require such assignment and delegation cease to
      apply.

     

    
      
        
        

      

      
        93

        
          

        

      

      
        
        

      

    

    10.14 Governing
      Law; Jurisdiction; Etc. 

     

    (a) GOVERNING
      LAW.
      THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
      LAW
      OF THE STATE OF TEXAS.

     

    (b) SUBMISSION
      TO JURISDICTION.
      THE BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY SUBMITS,
      FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS
      OF
      THE STATE OF TEXAS SITTING IN DALLAS COUNTY AND OF THE UNITED STATES DISTRICT
      COURT OF THE NORTHERN DISTRICT OF TEXAS, AND ANY APPELLATE COURT FROM ANY
      THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
      AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF
      ANY
      JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES
      THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND
      DETERMINED IN SUCH TEXAS STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY
      APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT
      A
      FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY
      BE
      ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
      PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL
      AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER
      MAY
      OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT
      OR
      ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ANY OTHER LOAN PARTY OR ITS
      PROPERTIES IN THE COURTS OF ANY JURISDICTION.

     

    (c) WAIVER
      OF VENUE.
      THE BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES,
      TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY
      NOW
      OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING
      OUT
      OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT
      REFERRED TO IN PARAGRAPH (b)
      OF THIS SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE
      FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT
      FORUM
      TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH
      COURT.

     

    (d) SERVICE
      OF PROCESS.
      EACH PARTY HERETO IRREVOCABLY CONSENTS, TO THE FULLEST EXTENT PERMITTED BY
      APPLICABLE LAW, TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN
      SECTION 10.02.
      NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE
      PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

     

    
      
        
        

      

      
        94

        
          

        

      

      
        
        

      

    

    10.15 Waiver
      of Jury Trial.
      EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
      BY
      APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
      DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
      OTHER
      LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED
      ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (a) CERTIFIES
      THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
      EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF
      LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (b) ACKNOWLEDGES
      THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
      AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL
      WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     

    10.16 No
      Advisory or Fiduciary Responsibility.
      In
      connection with all aspects of each transaction contemplated hereby (including
      in connection with any amendment, waiver or other modification hereof or of
      any
      other Loan Document), the Borrower and each other Loan Party acknowledges and
      agrees that: (i)(A) the arranging and other services regarding this
      Agreement provided by the Administrative Agent and the Arranger are arm’s-length
      commercial transactions between the Borrower, each other Loan Party and their
      respective Affiliates, on the one hand, and the Administrative Agent and the
      Arranger, on the other hand, (B) each of the Borrower and the other Loan
      Parties has consulted its own legal, accounting, regulatory and tax advisors
      to
      the extent it has deemed appropriate, and (C) the Borrower and each other
      Loan Party is capable of evaluating, and understands and accepts, the terms,
      risks and conditions of the transactions contemplated hereby and by the other
      Loan Documents; (ii)(A) the Administrative Agent and the Arranger each is
      and has been acting solely as a principal and, except as expressly agreed in
      writing by the relevant parties, has not been, is not, and will not be acting
      as
      an advisor, agent or fiduciary for the Borrower, any other Loan Party or any
      of
      their respective Affiliates, or any other Person and (B) neither the
      Administrative Agent nor the Arranger has any obligation to the Borrower, any
      other Loan Party or any of their respective Affiliates with respect to the
      transactions contemplated hereby except those obligations set forth herein
      and
      in the other Loan Documents; and (iii) the Administrative Agent and the
      Arranger and their respective Affiliates may be engaged in a broad range of
      transactions that involve interests that differ from those of the Borrower,
      the
      other Loan Parties and their respective Affiliates, and neither the
      Administrative Agent nor the Arranger has any obligation to disclose any of
      such
      interests to the Borrower, any other Loan Party or any of their respective
      Affiliates. To the fullest extent permitted by law, each of the Borrower and
      the
      other Loan Parties hereby waives and releases any claims that it may have
      against the Administrative Agent and the Arranger with respect to any breach
      or
      alleged breach of agency or fiduciary duty in connection with any aspect of
      any
      transaction contemplated hereby.

     

    10.17 USA
      PATRIOT Act Notice. Each
      Lender that is subject to the Act (as hereinafter defined) and the
      Administrative Agent (for itself and not on behalf of any Lender) hereby
      notifies the Borrower that pursuant to the requirements of the USA Patriot
      Act
      (Title III of Pub. L. 107-56 (signed into law October 26, 2001))
      (the “Act”),
      it is
      required to obtain, verify and record information that identifies the Borrower,
      which information includes the name and address of the Borrower and other
      information that will allow such Lender or the Administrative Agent, as
      applicable, to identify the Borrower in accordance with the Act.

     

    
      
        
        

      

      
        95

        
          

        

      

      
        
        

      

    

    10.18 ENTIRE
      AGREEMENT. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL
      AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
      CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
      UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

     

    
      	
              REMAINDER
                OF PAGE LEFT INTENTIONALLY BLANK

            

    

    

    
      
        
        

      

      
        96

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed as of the date first above written.

     

    
      	 	 	 
	 	TEXAS
              INDUSTRIES, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Kenneth
              R. Allen
	 	
              
Kenneth
              R. Allen
Vice President and
              Treasurer

    

     

     

    
      
        
        

      

      
        S-1

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 	BANK
              OF AMERICA, N.A.,
              as Administrative Agent
	 
 	 
 	 
 
	 	By:  	/s/ Michael
              Brashler
	 	
              
Michael
              Brashler
Vice
              President

    
      
        
        

      

      
        S-2

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 	BANK
              OF AMERICA, N.A.,
              as a Lender, L/C Issuer and Swing Line Lender
	 
 	 
 	 
 
	 	By:  	/s/ David
              McCauley
	 	
              
David
              McCauley
Principal

    
      
        
        

      

      
        S-3

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 	UBS
              SECURITIES LLC,
              as Syndication Agent 
	 
 	 
 	 
 
	 	By:  	/s/ Irja
              R. Otsa
	 	
              
Irja
              R. Otsa
Associate
              Director

       

      
        	 	 	 
	 	By:  	/s/ Mary
                E. Evans
	 	
                
Mary
                E. Evans
Associate
                Director

      
        
          
          

        

        
          S-4

          
            

          

        

        
          
          

        

      

    

    
      	 	 	 
	 	UBS
              LOAN FINANCE,
              as a Lender
	 
 	 
 	 
 
	 	By:  	/s/ Irja
              R. Otsa
	 	
              

              Irja
                R. Otsa

              Associate
                Director

            

    

     

    
       

      
        	 	By:  	/s/ Mary
                E.
                Evans
	 	
                

                Mary
                  E. Evans

                Associate
                  Director

              

      

    

     

    
      
        
           

          S-5

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      	 	 	 
	 	
              WELLS
                FARGO BANK, NATIONAL ASSOCIATION,

              as
                Co-Documentation Agent and as a Lender

            
	 
 	 
 	 
 
	 	By:  	/s/ Greg
              Campbell
	 	
              

              Greg
                Campbell

              Vice
                President

            

    
      
        
           

          S-6

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      	 	 	 
	 	
              COMERICA
                BANK,
                as Co-Documentation Agent

              and
                as a Lender

            
	 
 	 
 	 
 
	 	By:  	/s/ William
              B. Dridge
	 	
              

              William
                B. Dridge

              Vice
                President

            

    

     

    

    
      
        
           

          S-7

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      	 	 	 
	 	
              WACHOVIA
                BANK, NATIONAL ASSOCIATION,

              as
                Co-Documentation Agent and as a Lender

            
	 
 	 
 	 
 
	 	By:  	/s/ Jennifer
              L. Norris
	 	
              

              Jennifer
                L. Norris

              Senior
                Vice President

            

    

    
      
        
           

          S-8

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      	 	 	 
	 	SUNTRUST
              BANK,
              as a Lender
	 
 	 
 	 
 
	 	By:  	/s/ Robert
              Maddox
	 	
              

              Robert
                Maddox

              Vice
                President

            

    
      
        
           

          S-9

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      	 	 	 
	 	U.S.
              BANK NATIONAL ASSOCIATION,
              as a Lender
	 
 	 
 	 
 
	 	By:  	/s/ Kevin
              S. McFadden
	 	
              

              Kevin
                S. McFadden

              Vice
                President

            

    

     

    
      
        
           

          S-10

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      	 	 	 
	 	CAPITAL
              ONE, N.A.,
              as a Lender
	 
 	 
 	 
 
	 	By:  	/s/ Mary
              Jo Hoch
	 	
              

              Mary
                Jo Hoch

              Senior
                Vice President

            

    

     

    
      
        
           

          S-11

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
      	 	 	 
	 	
              GENERAL
                ELECTRIC CAPITAL CORPORATION,
                

              as
                a Lender

            
	 
 	 
 	 
 
	 	By:  	/s/ Bond
              Harberts
	 	
              

              Bond
                Harberts

              Duly
                Authorized Signatory

            

    

     

    
      
        
          
             

          

          
            S-12

          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    SCHEDULE
      1.01

     

    EXISTING
      LETTERS OF CREDIT

    

      
        	
                1

              	
                .

              	
                 Applicant:

              	 	
                Texas
                  Industries, Inc.

              
	 	 	
                 Issuer:

              	 	
                Bank
                  of America, N.A.

              
	 	 	
                 Original
                  Issuance Date:

              	 	
                July
                  6, 2005

              
	 	 	
                 Beneficiary:

              	 	
                Reliance
                  Insurance Company

              
	 	 	
                 Renewal/Expiry
                  Date:

              	 	
                April
                  1, 2008

              
	 	 	
                 LC
                  Number:

              	 	
                T00000000001148

              
	 	 	
                 Current
                  Aggregate Amount:

              	
                $

              	
                 1,456,681.00

              

      

       

      
        	
                2

              	
                .

              	
                 Applicant:

              	 	
                Texas
                  Industries, Inc.

              
	 	 	
                 Issuer:

              	 	
                Bank
                  of America, N.A.

              
	 	 	
                 Original
                  Issuance Date:

              	 	
                July
                  6, 2005

              
	 	 	
                 Beneficiary:

              	 	
                National
                  Union Fire Insurance Company

              
	 	 	
                 Renewal/Expiry
                  Date:

              	 	
                April
                  1, 2008

              
	 	 	
                 LC
                  Number:

              	 	
                T00000000133443

              
	 	 	
                 Current
                  Aggregate Amount:

              	
                $

              	
                 1,220,196.00

              

      

       

      
        	
                3

              	
                .

              	
                 Applicant:

              	 	
                Texas
                  Industries, Inc.

              
	 	 	
                 Issuer:

              	 	
                Bank
                  of America, N.A.

              
	 	 	
                 Original
                  Issuance Date:

              	 	
                July
                  6, 2005

              
	 	 	
                 Beneficiary:

              	 	
                Old
                  Republic Insurance Company

              
	 	 	
                 Renewal/Expiry
                  Date:

              	 	
                April
                  1, 2008

              
	 	 	
                 LC
                  Number:

              	 	
                T00000003027320

              
	 	 	
                 Current
                  Aggregate Amount:

              	
                $

              	
                 24,055,603.00

              

      

       

      
        	
                4

              	
                .

              	
                 Applicant:

              	 	
                Texas
                  Industries, Inc.

              
	 	 	
                 Issuer:

              	 	
                Bank
                  of America, N.A.

              
	 	 	
                 Original
                  Issuance Date:

              	 	
                June
                  12, 2006

              
	 	 	
                 Beneficiary:

              	 	
                Richard
                  E. Mathney A

              
	 	 	
                 Renewal/Expiry
                  Date:

              	 	
                December
                  31, 2007

              
	 	 	
                 LC
                  Number:

              	 	
                T00000003082200

              
	 	 	
                 Current
                  Aggregate Amount:

              	
                $

              	
                 250,000.00

              

      

       

      
        	
                5

              	
                .

              	
                 Applicant:

              	 	
                Texas
                  Industries, Inc.

              
	 	 	
                 Issuer:

              	 	
                Bank
                  of America, N.A.

              
	 	 	
                 Original
                  Issuance Date:

              	 	
                February
                  26, 2007

              
	 	 	
                 Beneficiary:

              	 	
                Executive
                  Director

              
	 	 	
                 Renewal/Expiry
                  Date:

              	 	
                February
                  25, 2008

              
	 	 	
                 LC
                  Number:

              	 	
                T00000003086941

              
	 	 	
                 Current
                  Aggregate Amount:

              	
                $

              	
                 2,564,356.00

              

      

       

    

    
      
        
          
             

          

          
            Schedule
              1.01

          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    SCHEDULE
      2.01

     

    COMMITMENTS

     

    AND
      APPLICABLE PERCENTAGES

     

    

    
      	
              Lender

            	 	
              Commitment

            	 	
              Applicable
                Percentage

            	 
	
              Bank
                of America, N.A.

            	 	
              $

            	
              32,000,000

            	 	 	
              16.000000000

            	
              %

            
	
              UBS
                Loan Finance

            	 	
              $

            	
              24,000,000

            	 	 	
              12.000000000

            	
              %

            
	
              Wachovia
                Bank, National Association

            	 	
              $

            	
              24,000,000

            	 	 	
              12.000000000

            	
              %

            
	
              Wells
                Fargo Bank, National Association

            	 	
              $

            	
              24,000,000

            	 	 	
              12.000000000

            	
              %

            
	
              SunTrust
                Bank

            	 	
              $

            	
              24,000,000

            	 	 	
              12.000000000

            	
              %

            
	
              Comerica
                Bank

            	 	
              $

            	
              24,000,000

            	 	 	
              12.000000000

            	
              %

            
	
              U.S.
                Bank National Association

            	 	
              $

            	
              16,000,000

            	 	 	
              8.000000000

            	
              %

            
	
              Capital
                One, N.A.

            	 	
              $

            	
              16,000,000

            	 	 	
              8.000000000

            	
              %

            
	
              General
                Electric Capital Corporation

            	 	
              $

            	
              16,000,000

            	 	 	
              8.000000000

            	
              %

            
	 	 	 	 	 	 	 	 
	
              Total

            	 	
              $

            	
              200,000,000

            	 	 	
              100.000000000

            	
              %

            

    

    

    

    

    
      
        
          
             

          

          
            Schedule
              2.01

          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    SCHEDULE
      5.13

     

    SUBSIDIARIES,

    OTHER
      EQUITY INVESTMENTS

    AND
      EQUITY INTERESTS IN THE BORROWER

    

      
        	
                PART
                  (a)

              	
                 SUBSIDIARIES

              	 
	 	 	
                State
                  of Incorporation

              
	 	 	
                 or
                  Organization

              
	
                Brookhollow
                  Corporation

              	
                 Delaware

              
	
                 Brookhollow
                  of Alexandria, Inc.

              	
                 Louisiana

              
	
                 Brook
                  Hollow Properties, Inc.

              	
                 Texas

              
	
                 Brookhollow
                  of Virginia, Inc.

              	
                 Virginia

              
	
                Creole
                  Corporation

              	
                 Delaware

              
	
                Pacific
                  Custom Materials, Inc.

              	
                 California

              
	
                Riverside
                  Cement Company (1)

              	
                 California

              
	
                 Partin
                  Limestone Products, Inc.

              	
                 California

              
	
                 Riverside
                  Cement Holdings Company

              	
                 Delaware

              
	
                Texas
                  Industries Holdings, LLC (formerly Texas Industries Holdings,
                  Inc.)

              	
                 Delaware

              
	
                 Texas
                  Industries Trust

              	
                 Delaware

              
	
                TXI
                  Aviation, Inc.

              	
                 Texas

              
	
                TXI
                  California Inc.

              	
                 Delaware

              
	
                TXI
                  Cement Company

              	
                 Delaware

              
	
                TXI
                  LLC (formerly TXI Corp. and formerly TXI Texas, Inc.)

              	
                 Delaware

              
	
                 TXI
                  Operating Trust

              	
                 Delaware

              
	
                  TXI
                  Operations, LP (2)

              	
                 Delaware

              
	
                 Southwestern
                  Financial Corporation

              	
                 Texas

              
	
                TXI
                  Power Company

              	
                 Texas

              
	
                TXI
                  Riverside Inc.

              	
                 Delaware

              
	
                TXI
                  Transportation Company

              	
                 Texas

              
	 	 
	
                Indirect
                  subsidiaries of the Borrower are indented and listed following
                  their
                  direct parent company,

              
	
                with
                  subsidiaries with multiple direct owners as follows:

              	 
	 	 
	
                (1)
                  California general partnership: TXI California Inc. and TXI Riverside
                  Inc., general partners

              
	
                (2)
                  Delaware limited partnership: TXI Operating Trust, general partner;
                  Texas
                  Industries Trust,

              
	
                limited
                  partner

              	 

      

    

     

    

    
      
        
          Schedule
            5.13

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    PART
      (b)
      OTHER EQUITY INVESTMENTS

    

    Minority
      Interests

    

    None.

    

    

    

    
      
        
          
             

          

          
            Schedule
              5.13

          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    SCHEDULE
      7.01

     

    EXISTING
      LIENS

     

    Referred
      to in Subparagraph (h) of the definition of “Permitted
      Liens”

     

    

    
      	
              1.

            	
              Liens
                and security interests granted by various Loan Parties in favor of
                Bank of
                America, as administrative agent under the Existing Credit Agreement
                that
                secure such Loan Parties’ obligations under such credit agreement or under
                guaranties thereof. All such liens and security interests will be
                released
                as part of the transactions occurring on or about the Closing
                Date.

            

    

     

    
      	
              2.

            	
              The
                Borrower and its Subsidiaries are parties to various personal property
                leases of the kinds described in clause (i) of the definition of
                “Permitted Liens” and the lessor under these leases have made various
                precautionary UCC filings. In certain instances, the Borrower has
                subleased this personal property to TXI Operations, LP, and the Borrower
                may have granted to the original lessor a Lien in the
                sublease.

            

    

    

    

     

    

     

    

    
      
        
          
             

          

          
            Schedule
              7.01

          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    SCHEDULE
      7.02(d)

     

    EXISTING
      INVESTMENTS

    

    Investments
      listed in PART (b) of Schedule 5.13

     

    Obligations
      with respect to letters of credit listed on Schedule 1.01 and guarantees listed
      on Schedule 7.03(c), to the extent constituting Investments

     

    

    

     

    

    

    
      
        
          
             

          

          
            Schedule
              7.02(f)

          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    SCHEDULE
      7.03(c)

     

    EXISTING
      DEBT

     

    $1,135,000
      Pollution Control Bonds, due through 2007.

     

    Certain
      future contractual payments due to retirees or their beneficiaries under the
      Borrower’s Financial Security Plan, which may constitute “Debt” as defined. The
      estimated amount of these obligations as at May 31, 2007, was disclosed in
      the note entitled “Retirement Plans” to the Borrower’s May 31, 2007,
      audited annual consolidated financial statements.

     

    $9.267
      million capital lease obligation to Southern California Edison
      Company

     

    $354,000
      of other Debt disclosed in the footnote in the Audited Financial
      Statements

     

    

     

    

    

    
      
        
          
             

          

          
            Schedule
              7.03

          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    SCHEDULE
      10.02

     

    ADMINISTRATIVE
      AGENT’S OFFICE;

    CERTAIN
      ADDRESSES FOR NOTICES

     

    THE
      BORROWER:

    

      
        	
                Texas
                  Industries, Inc.

              
	
                1341
                  West Mockingbird Lane, 7th Floor

              
	
                Dallas,
                  Texas 75247

              
	
                Attention:  Kenneth
                  R. Allen, Vice President and Treasurer

              
	
                Telephone:    (972) 647-6730

              
	
                Telecopier:    (972) 674-3964

              
	
                Electronic
                  Mail: kallen@txi.com

              
	
                Website
                  Address: www.txi.com

              
	
                U.S.
                  Taxpayer Identification Number: 75-0832210

              
	 
	
                ADMINISTRATIVE
                  AGENT:

              
	 
	
                Administrative
                  Agent's Office

              
	
                (for
                  payments and Requests for Credit Extensions):

              
	
                Bank
                  of America, N.A.

              
	
                901
                  Main Street

              
	
                Dallas,
                  Texas 75202

              
	 
	
                Primary

              	 
	
                Attention:

              	  Monica
                Barnes
	
                Telephone:

              	  214-209-9289
	
                Telecopier:

              	  214-290-9442
	
                Electronic
                  Mail: monica.t.barnes@bankofamerica.com

              
	 
	
                Secondary

              	 
	
                Attention:

              	  Deanna
                Betik
	
                Telephone:

              	  214-209-3259
	
                Telecopier:

              	  214-290-9414
	
                Electronic
                  Mail: deanna.betik@bankofamerica.com

              
	 
	
                 

              
	Account
                No.:	 129-2000-883
	
                Ref:

              	 Texas
                Industries, Inc.
	
                ABA#

              	  026-009-593
	
                Attn:

              	  Credit
                Services

      

       

    

    
      
        
        

      

      
        
          Schedule
            10.02 - 1

        

        
          

        

      

      
        
        

      

    

    

      
        	
                Other
                  Notices as Administrative Agent:

              
	
                Bank
                  of America, N.A.

              
	
                Agency
                  Management

              
	
                Street
                  Address: 231 South LaSalle Street

              
	
                Mail
                  Code: IL1-231-10-41

              
	
                City,
                  State ZIP Code: Chicago, Illinois 60604

              
	 
	
                Primary

              	 	 
	
                Attention:

              	 Linda
                Love
	
                Telephone:

              	
                (312)828-8010

              
	
                Telecopier:

              	
                (877)206-1766

              
	
                Electronic
                  Mail: linda.k.lov@BankofAmerica.com

              
	 
	
                Secondary

              	 
	
                Attention:

              	 Bozena
                Janociak
	
                Telephone:

              	
                (312)828-3597

              
	
                Telecopier:

              	
                (877)207-0732

              
	
                Electronic
                  Mail: bozena.janociak@BankofAmerica.com

              
	 
	
                L/C
                  ISSUER:

              
	 
	
                Standby
                  Letters of Credit

              
	
                Bank
                  of America, N.A.

              
	
                Trade
                  Operations - Los Angeles

              
	
                1000
                  West Temple Street

              
	
                Mail
                  Code:  CA9-705-07-05

              
	
                Los
                  Angeles, California 90012-1514

              
	
                Attention:
                  Tai Anh Lu

              
	
                Telephone:

              	
                (214)481-7840

              
	
                Facsimile:

              	
                (213)580-8442

              
	
                Electronic
                  Mail: tai_anh.lu@bankofamerica.com

              
	 
	
                Commercial
                  Letters of Credit

              
	
                Bank
                  of America, N.A.

              
	
                Trade
                  Operations - Los Angeles

              
	
                1000
                  West Temple Street

              
	
                Mail
                  Code:  CA9-705-07-05

              
	
                Los
                  Angeles, California 90012-1514

              
	
                Attention:
                  Frantz Bellevue

              
	
                Telephone:

              	
                (213)580-8476

              
	
                Facsimile:

              	
                (213)580-8444

              
	
                Electronic
                  Mail:
                  frantz.bellevue@bankofamerica.com

              

      

    

     

    
      
        
        

      

      
        
          Schedule
            10.02 - 2

        

        
          

        

      

      
        
        

      

    

     

    

      
        	
                SWING
                  LINE LENDER:

              
	 
	
                Bank
                  of America, N.A.

              
	
                901
                  Main Street

              
	
                Dallas,
                  Texas 75202

              
	 
	
                Primary

              	 
	
                Attention:

              	
                 Monica
                  Barnes

              
	
                Telephone:

              	
                 214-209-9289

              
	
                Telecopier:

              	
                 214-290-9442

              
	
                Electronic
                  Mail: monica.t.barnes@bankofamerica.com

              
	 
	
                Secondary

              	 
	
                Attention:

              	
                 Deanna
                  Betik

              
	
                Telephone:

              	
                 214-209-3259

              
	
                Telecopier:

              	
                 214-290-9414

              
	
                Electronic
                  Mail: deanna.betik@bankofamerica.com

              
	 
	
                Account
                  No.:

              	
                 129-2000-883

              
	
                Ref:

              	
                 Texas
                  Industries, Inc.

              
	
                ABA#

              	
                 026-009-593

              
	
                Attn:

              	
                 Credit
                  Services

              

      

    

     

    

    

    
      
        
          
          

          
            Schedule
              10.02 - 3

          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    EXHIBIT
      A

     

    ASSIGNMENT
      AND ASSUMPTION

     

    This
      Assignment and Assumption (this “Assignment
      and Assumption”)
      is
      dated as of the Effective Date set forth below and is entered into by and
      between [Insert name of Assignor] (the “Assignor”)
      and
      [Insert name of Assignee] (the “Assignee”).
      Capitalized terms used but not defined herein shall have the meanings given
      to
      them in the Credit Agreement identified below (the “Credit
      Agreement”),
      receipt of a copy of which is hereby acknowledged by the Assignee. The Standard
      Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed
      to and incorporated herein by reference and made a part of this Assignment
      and
      Assumption as if set forth herein in full.

     

    For
      an
      agreed consideration, the Assignor hereby irrevocably sells and assigns to
      the
      Assignee, and the Assignee hereby irrevocably purchases and assumes from the
      Assignor, subject to and in accordance with the Standard Terms and Conditions
      and the Credit Agreement, as of the Effective Date inserted by the
      Administrative Agent as contemplated below (i) all of the Assignor’s rights
      and obligations as a Lender under the Credit Agreement and any other documents
      or instruments delivered pursuant thereto to the extent related to the amount
      and percentage interest identified below of all of such outstanding rights
      and
      obligations of the Assignor under the respective facilities identified below
      (including, without limitation, the Letters of Credit and the Swing Line Loans
      included in such facilities) and (ii) to the extent permitted to be
      assigned under Applicable Law, all claims, suits, causes of action and any
      other
      right of the Assignor (in its capacity as a Lender) against any Person, whether
      known or unknown, arising under or in connection with the Credit Agreement,
      any
      other documents or instruments delivered pursuant thereto or the loan
      transactions governed thereby or in any way based on or related to any of the
      foregoing, including, but not limited to, contract claims, tort claims,
      malpractice claims, statutory claims and all other claims at law or in equity
      related to the rights and obligations sold and assigned pursuant to
      clause (i) above (the rights and obligations sold and assigned pursuant to
      clauses (i) and (ii) above being referred to herein collectively as, the
“Assigned
      Interest”).
      Such
      sale and assignment is without recourse to the Assignor and, except as expressly
      provided in this Assignment and Assumption, without representation or warranty
      by the Assignor.

     

    1. Assignor: ______________________________

     

    2. Assignee: ______________________________
      [and is an Affiliate/Approved Fund of [identify
      Lender]1 ]

     

    3. Borrower(s): Texas
      Industries, Inc..

     

    
      	
              4.

            	
              Administrative
                Agent:
                Bank of America, N.A., as the administrative agent under the Credit
                Agreement

            

    

    
      
        

      

      1 Select
        as
        applicable. 

       

      
        
          
          

        

        
          
            A
              -1

            Form
              of
              Assignment and Assumption

          

          
            

          

        

        
          
          

        

      
 

     

    
      	
              5.

            	
              Credit
                Agreement: First Amended and Restated Credit Agreement, dated as
                of August 15,
                2007, among Texas Industries, Inc., the Lenders from time to time
                party
                thereto, and Bank of America, N.A., as Administrative Agent, L/C
                Issuer,
                and Swing Line Lender

            

    

     

    
      	
              6.

            	
              Assigned
                Interest:

            

    

     

     

    
      	 

              Aggregate

              Amount
                of

              Commitment

              for
                all Lenders*

            	 

              Amount
                of

              Commitment/

              Assigned*

            	 

              Percentage

              Assigned
                of

              Commitment2  

            	 

              CUSIP

              Number

            
	 	 	 	 
	 

              $____________

            	 

              $_____________

            	 

              __________%

            	 
	 

              $____________

            	 

              $_____________

            	 

              __________%

            	 
	 

              $____________

            	 

              $_____________

            	 

              __________%

            	 

    

    
    

     

     

     

    [7. Trade
      Date: __________________]3  To
      be completed if the Assignor and the Assignee intend that the minimum assignment
      amount is to be determined as of the Trade Date. 

     

    Effective
      Date: __________________, 20__ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND
      WHICH
      SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
      THEREFOR.]

     

    The
      terms
      set forth in this Assignment and Assumption are hereby agreed to:

     

    
      	 	 

              ASSIGNOR

              [NAME
                OF ASSIGNOR]

              

              

              By:_____________________________________________       

              Title:

              ASSIGNEE

              [NAME
                OF ASSIGNEE]

              

              

              By:_____________________________________________       

              Title:

            

    

     

    
      

    

    
      2 Amount
        to
        be adjusted by the counterparties to take into account any payments or
        prepayments made between the Trade Date and the Effective Date.

       

      2 Set
        forth, to at least 9 decimals, as a percentage of the Commitment/Loans of
        all
        Lenders thereunder.

       

      3 To
        be
        completed if the Assignor and the Assignee intend that the minimum assignment
        amount is to be determined as of the Trade Date. 

       

      
        
          
          

        

        
          
            A
              -
              2

            Form
              of
              Assignment and Assumption

          

          
            

          

        

        
          
          

        

      

    

    [Consented
      to and]4 
      Accepted:

     

    BANK
      OF
      AMERICA, N.A., as

    Administrative
      Agent

     

     

    By:_________________________________    

    Title:

     

    [Consented
      to:]5  

     

    By:_________________________________    

    Title:

     

    

    

      

      
        4 To
          be
          added only if the consent of the Administrative Agent is required by the
          terms
          of the Credit Agreement. 

         

      

      
        5 To
          be
          added only if the consent of the Borrower and/or other parties (e.g. Swing
          Line
          Lender, L/C Issuer) is required by the terms of the Credit Agreement.

         

      

    

    

    
      
        
          
             

          

          
            A
              -
              3

            Form
              of
              Assignment and Assumption

          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    ANNEX
      1 TO ASSIGNMENT AND ASSUMPTION

     

    STANDARD
      TERMS AND CONDITIONS FOR

     

    ASSIGNMENT
      AND ASSUMPTION

     

    1. Representations
      and Warranties.

     

    1.1. Assignor.
      The
      Assignor (a) represents and warrants that (i) it is the legal and
      beneficial owner of the Assigned Interest, (ii) the Assigned Interest is
      free and clear of any lien, encumbrance or other adverse claim and (iii) it
      has full power and authority, and has taken all action necessary, to execute
      and
      deliver this Assignment and Assumption and to consummate the transactions
      contemplated hereby; and (b) assumes no responsibility with respect to
      (i) any statements, warranties or representations made in or in connection
      with the Credit Agreement or any other Loan Document, (ii) the execution,
      legality, validity, enforceability, genuineness, sufficiency or value of the
      Loan Documents or any collateral thereunder, (iii) the financial condition
      of the Borrower, any of its Subsidiaries or Affiliates or any other Person
      obligated in respect of any Loan Document or (iv) the performance or
      observance by the Borrower, any of its Subsidiaries or Affiliates or any other
      Person of any of their respective obligations under any Loan
      Document.

     

    1.2. Assignee.
      The
      Assignee (a) represents and warrants that (i) it has full power and
      authority, and has taken all action necessary, to execute and deliver this
      Assignment and Assumption and to consummate the transactions contemplated hereby
      and to become a Lender under the Credit Agreement, (ii) it meets all
      requirements of an Eligible Assignee under the Credit Agreement (subject to
      receipt of such consents as may be required under the Credit Agreement),
      (iii) from and after the Effective Date, it shall be bound by the
      provisions of the Credit Agreement as a Lender thereunder and, to the extent
      of
      the Assigned Interest, shall have the obligations of a Lender thereunder,
      (iv) it has received a copy of the Credit Agreement, together with copies
      of the most recent financial statements delivered pursuant to Section
      6.01
      thereof,
      as applicable, and such other documents and information as it has deemed
      appropriate to make its own credit analysis and decision to enter into this
      Assignment and Assumption and to purchase the Assigned Interest on the basis
      of
      which it has made such analysis and decision independently and without reliance
      on the Administrative Agent or any other Lender, and (v) if it is a Foreign
      Lender, attached hereto is any documentation required to be delivered by it
      pursuant to the terms of the Credit Agreement, duly completed and executed
      by
      the Assignee; and (b) agrees that (i) it will, independently and
      without reliance on the Administrative Agent, the 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 Loan Documents, and (ii) it will perform in accordance with their
      terms all of the obligations which by the terms of the Loan Documents are
      required to be performed by it as a Lender.

     

    2. Payments.
      From
      and after the Effective Date, the Administrative Agent shall make all payments
      in respect of the Assigned Interest (including payments of principal, interest,
      fees and other amounts) to the Assignor for amounts which have accrued to but
      excluding the Effective Date and to the Assignee for amounts which have accrued
      from and after the Effective Date.

     

    
      
        
        

      

      
        
          A
            -
            4

          Form
            of
            Assignment and Assumption

        

        
          

        

      

      
        
        

      

    

     

    3. General
      Provisions.
      This
      Assignment and Assumption shall be binding upon, and inure to the benefit of,
      the parties hereto and their respective successors and assigns. This Assignment
      and Assumption may be executed in any number of counterparts, which together
      shall constitute one instrument. Delivery of an executed counterpart of a
      signature page of this Assignment and Assumption by telecopy shall be effective
      as delivery of a manually executed counterpart of this Assignment and
      Assumption. This Assignment and Assumption shall be governed by, and construed
      in accordance with, the law of the State of Texas.

     

    

    

    
      
        
          
             

          

          
            A
              -
              5

            Form
              of
              Assignment and Assumption

          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    EXHIBIT
      B

     

    FORM
      OF COMPLIANCE CERTIFICATE

     

    Financial
      Statement Date: ____________,

     

    To: Bank
      of
      America, N.A., as Administrative Agent

     

    Ladies
      and Gentlemen:

     

    Reference
      is made to that certain First Amended and Restated Credit Agreement, dated
      as of
      August 15, 2007 (as amended, restated, extended, supplemented or otherwise
      modified in writing from time to time, the “Agreement;”
the
      terms defined therein being used herein as therein defined), among Texas
      Industries, Inc., a Delaware corporation (the “Borrower”),
      the
      Lenders from time to time party thereto, and Bank of America, N.A., as
      Administrative Agent, L/C Issuer and Swing Line Lender.

     

    The
      undersigned Responsible Officer hereby certifies as of the date hereof that
      he/she is the ______________________________________ of
      the
      Borrower, and that, as such, he/she is authorized to execute and deliver this
      Certificate to the Administrative Agent on the behalf of the Borrower, and
      that:

     

    [Use
      following paragraph 1 for fiscal year-end financial
      statements]

     

    1. Attached
      hereto as Schedule
      1
      are the
      year-end audited financial statements required by Section
      6.01(a)
      of the
      Agreement for the fiscal year of the Borrower ended as of the above date,
      together with the report and opinion of an independent certified public
      accountant required by such section.

     

    [Use
      following paragraph 1 for fiscal quarter-end financial
      statements]

     

    1. Attached
      hereto as Schedule
      1
      are the
      unaudited financial statements required by Section
      6.01(b)
      of the
      Agreement for the fiscal quarter of the Borrower ended as of the above date.
      Such financial statements fairly present the financial condition, results of
      operations and cash flows of the Borrower and its Subsidiaries in accordance
      with GAAP as at such date and for such period, subject only to normal year-end
      audit adjustments and the absence of footnotes.

     

    2. The
      undersigned has reviewed and is familiar with the terms of the Agreement and
      has
      made, or has caused to be made under his/her supervision, a detailed review
      of
      the transactions and condition (financial or otherwise) of the Borrower during
      the accounting period covered by the attached financial statements.

     

    3. A
      review
      of the activities of the Borrower during such fiscal period has been made under
      the supervision of the undersigned with a view to determining whether during
      such fiscal period the Borrower performed and observed all its Obligations
      under
      the Loan Documents, and

     

    
      
        
        

      

      
        
          B
            -
            1

          Form
            of
            Assignment and Assumption

        

        
          

        

      

      
        
        

      

    

     

    [select
      one:]

     

    [to
      the knowledge of the undersigned during such fiscal period, the Borrower
      performed and observed each covenant and condition of the Loan Documents
      applicable to it, and no Default has occurred and is
      continuing.]

     

    --or--

     

    [the
      following covenants or conditions have not been performed or observed and the
      following is a list of each such Default and its nature and
      status:]

     

    4. The
      representations and warranties of the Borrower contained in Article
      V
      of the
      Agreement, and any representations and warranties of any Loan Party that are
      contained in any document furnished at any time under or in connection with
      the
      Loan Documents, are true and correct on and as of the date hereof, except to
      the
      extent that such representations and warranties specifically refer to an earlier
      date, in which case they are true and correct as of such earlier date, and
      except that for purposes of this Compliance Certificate, the representations
      and
      warranties contained in subsection (a) of Section 5.05
      of the
      Agreement shall be deemed to refer to the most recent statements furnished
      pursuant to clause (a) of Section 6.01
      of the
      Agreement, including the statements in connection with which this Compliance
      Certificate is delivered.

     

    5. The
      financial covenant analyses and information set forth on Schedule 2
      attached
      hereto are true and accurate on and as of the date of this
      Certificate.

     

    This
      Certificate is executed by the undersigned in his capacity as an officer of
      the
      Borrower and not in any individual capacity.

     

    IN
      WITNESS WHEREOF, the undersigned has executed this Certificate as of
      ______________, ____

    
      	 	 	 
	 	
              TEXAS
                INDUSTRIES, INC.

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

                    

            

    

    
      	 	Name:	 	 
	 	Title:	 	 

    

     

    
      
        
          
             

          

          
            B
              - 2 

            Form
              of
              Compliance Certificate

          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    For
      the
      Quarter/Year ended ___________________(“Statement
      Date”)

     

    SCHEDULE
      2

    to
      the
      Compliance Certificate

    ($
      in
      000’s)

     

    
      	
              I.

            	
              Leverage
                Ratio - For Determination of Applicable Rate.

            
	 	
              A.

            	
              Total
                Debt for the Borrower and its Subsidiaries, without
                duplication:

            	 
	 	 	
              1.

            	
              All
                principal outstanding under the Loan Documents:

            	
              $____________

            
	 	 	
              2.

            	
              All
                principal obligations evidenced by a promissory note or otherwise
                representing borrowed money:

            	
              $____________

            
	 	 	
              3.

            	
              All
                reimbursement obligations for letters of credit that have been drawn
                upon
                and remain outstanding:

            	
              $____________

            
	 	 	
              4.

            	
              All
                Capitalized Lease Obligations:

            	
              $____________

            
	 	 	
              5.

            	
              Total
                Debt (Lines I.A.1. + 2. + 3. + 4.):

            	
              $____________

            
	 	
              B.

            	
              EBITDA
                for the period of the four fiscal quarters most recently
                ended:

            	 
	 	 	
              1.

            	
              EBITDA
                for the Borrower and its Subsidiaries on a consolidated
                basis:

            	 
	 	 	 	
              (a)

            	
              Adjusted
                Net Earnings From Operations for such Period:

            	 
	 	 	 	 	
              (i)

            	
              net
                income for the Borrower and its Subsidiaries on a consolidated basis
                after
                provision for income taxes for such fiscal period, as determined
                in
                conformity with GAAP and reported on the financial statements for
                such
                fiscal period:

            	
              $____________

            
	 	 	 	 	
              (ii)

            	
              to
                the extent included in net income,  gain, to the extent in excess of
                $5,000,000, or loss arising from the sale of any capital assets (including
                sales of surplus operating assets and real estate):

            	
              $____________

            
	 	 	 	 	
              (iii)

            	
              to
                the extent included in net income,  gain or loss arising from any
                write-up or write-down in the book value of any asset:

            	
              $____________

            
	 	 	 	 	
              (iv)

            	
              to
                the extent included in net income, earnings of any other Person,
                substantially all of the assets of which have been acquired by the
                Borrower or its Subsidiaries in any manner, to the extent realized
                by such
                other Person prior to the date of Acquisition:

            	
              $____________

            

    

     

    
      
        
        

      

      
         B
          -
          1
          Form
            of
            Assignment and Assumption

        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 	 	
              (v)

            	
              to
                the extent included in net income, earnings of any other Person
                (excluding Wholly-Owned Subsidiaries) in which the Borrower or its
                Subsidiaries has an ownership interest unless (and only to the extent)
                such earnings shall actually have been received by the Borrower or
                its
                Subsidiaries in the form of cash distributions:

            	
              $____________

            
	 	 	 	 	
              (vi)

            	
              to
                the extent included in net income, earnings of any Person to which
                assets of the Borrower or its Subsidiaries shall have been sold,
                transferred, or disposed of, or into which the Borrower or its
                Subsidiaries shall have been merged, or which has been a party with
                the
                Borrower or its Subsidiaries to any consolidation or other form of
                reorganization, prior to the date of such transaction:

            	
              $____________

            
	 	 	 	 	
              (vii)

            	
              to
                the extent included in net income, gain arising from the acquisition
                of debt or equity securities of the Borrower or its Subsidiaries
                or from
                cancellation or forgiveness of Debt:

            	
              $____________

            
	 	 	 	 	
              (viii)

            	
              to
                the extent included in net income, gain or loss arising from extraordinary
                items, as determined in conformity with GAAP, or from any other
                non-recurring transaction:

            	
              $____________

            
	 	 	 	 	
              (ix)

            	
              Adjusted
                Net Earnings From Operations (Lines I.B.1.(a)(i) - (ii) - (iii) -
                (iv) -
                (v) - (vi) - (vii) - (viii)):

            	
              $____________

            
	 	 	 	
              (b)

            	
              To
                the extent deducted in the determination of Adjusted Net Earnings
                From
                Operations, Interest Expense:

            	
              $____________

            
	 	 	 	
              (c)

            	
              To
                the extent deducted in the determination of Adjusted Net Earnings
                From
                Operations, federal, state, local and foreign income
                taxes:

            	
              $____________

            

    

     

    
      
        
        

      

      
         B
          -
          2
          Form
            of
            Assignment and Assumption

        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 	
              (d)

            	
              To
                the extent deducted in the determination of Adjusted Net Earnings
                From
                Operations, Depreciation, amortization and other non-recurring non-cash
                charges (excluding any non-cash charges to the extent that it represents
                an accrual of or reserve for cash payments in any future
                period):

            	
              $____________

            
	 	 	 	
              (e)

            	
              To
                the extent deducted in the determination of Adjusted Net Earnings
                From
                Operations, non-cash charges in respect of stock based compensation
                expenses (excluding any non-cash charges to the extent that it represents
                an accrual of or reserve for cash payments in any future
                period):

            	
              $____________

            
	 	 	 	
              (f)

            	
              To
                the extent included in the determination of Adjusted Net Earnings
                From
                Operations, non-cash credits:

            	
              $____________

            
	 	 	 	
              (g)

            	
              EBITDA
                (Lines I.B.1(a)(ix) + (b) + (c) + (d) + (e) - (f)):

            	
              $____________

            
	 	
              C.

            	
              Leverage
                Ratio (Line I.A.5.  ̧
                Line I.B.1.(g)):

            	
              ______
                to
                1.00

            
	
              II.

            	
              Section
                7.02(e) and (f)
                - Limitation on Acquisitions and Other
                Investments.

            
	 	
              A.

            	
              During
                any Limited Amount Period, the aggregate Acquisition Consideration
                for all
                Acquisitions made during such Limited Amount Period and the aggregate
                amount of Investments not otherwise permitted to be made under
                Section 7.02
                made during such Limited Amount Period:

            	
              $____________

            
	 	
              B.

            	
              Maximum:

            	
              $30,000,000

            
	 	
              C.

            	
              During
                all Limited Amount Periods, the aggregate Acquisition Consideration
                for
                all Acquisitions made during such Limited Amount Periods and the
                aggregate
                amount of Investments not otherwise permitted to be made under
                Section 7.02
                made during all Limited Amount Periods:

            	
              $____________

            
	 	
              D.

            	
              Maximum:

            	
              $100,000,000

            
	
              III.

            	
              Sections
                7.03(d)
                and 7.03(k)
                - Limitation on Capitalized Lease Obligations and Debt incurred to
                Purchase Assets and Other Secured Debt.

            
	 	
              A.

            	
              The
                aggregate outstanding amount of Capitalized Lease Obligations and
                Debt
                incurred to purchase assets:

            	
              $____________

            
	 	
              B.

            	
              The
                aggregate outstanding amount of other secured Debt pursuant to
                Section
                7.03(k):

            	
              $____________

            
	 	
              C.

            	
              Maximum:

            	
              $25,000,000

            
	
              IV.

            	
              Section
                7.06(e)
                - Limitation on Restricted
                Payments.

            

    

     

    
      
        
        

      

      
         B
          -
          3
          Form
            of
            Assignment and Assumption

        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              A.

            	
              During
                a Limited Restricted Payment Period, the aggregate amount of Dividends
                made by the Borrower:

            	
              $____________

            
	 	
              B.

            	
              Maximum:

            	
              $10,000,000

            
	 	
              C.

            	
              During
                all Limited Restricted Payment Periods, the aggregate amount of Restricted
                Payments (including Dividends, but excluding for purpose of the amount
                permitted, Dividends paid pursuant to clause (i) of Section 7.06(e))
                made during all Limited Restricted Payment Periods:

            	
              $____________

            
	 	
              D.

            	
              Maximum:

            	
              $25,000,000

            
	
              V.

            	
              Section
                7.11(a)
                - Maximum Leverage Ratio.

            
	 	
              A.

            	
              Leverage
                Ratio (Line I.C.)

            	
              to
                1.00

            
	 	
              B.

            	
              Maximum
                Leverage Ratio:

            	
              4.00
                to 1.00

            
	
              VI.

            	
              Section
                7.11(b)
                - Minimum Interest Coverage Ratio.

            
	 	
              A.

            	
              EBITDA
                (Line I.B.1.(g)):

            	
              $____________

            
	 	
              B.

            	
              Interest
                Expense for the Borrower and Subsidiaries (including Capitalized
                Lease
                Obligations):

            	
              $____________

            
	 	
              C.

            	
              Interest
                Coverage Ratio (Line VI.A. ÷ VI.B.):

            	
              ______
                to 1.00

            
	 	
              D.

            	
              Minimum
                Interest Coverage Ratio:

            	
              2.50
                to 1.00

            
	
              VII.

            	
              Section
                7.15
                - Limitation on Restricted Debt Payments.

            
	 	
              A.

            	
              During
                all Limited Amount Periods, the aggregate amount of Restricted Debt
                Payments made during such Limited Amount Periods:

            	
              $____________

            
	 	
              B.

            	
              Maximum:

            	
              $50,000,000

            

    

    

     

    

     

    

    
      
        
          
             

          

          
            B
              -
              4

            Form
              of
              Compliance Certificate

          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    EXHIBIT
      C

     

    FORM
      OF GUARANTY

     

    GUARANTY
      (together with all amendments and restatements and Guaranty Supplements, this
      “Guaranty”),
      dated
      as of August 15, 2007, made by each of the parties listed on the signature
      pages hereof and each other Person who may from time to time become a party
      to
      this Guaranty pursuant to Section 22
      (collectively, the “Additional
      Guarantors,”
and
      each, an “Additional
      Guarantor,”
and
      together with each of the signatories party hereto, collectively the
“Guarantors,”
and
      each, a “Guarantor”),
      in
      favor of the Guarantied Parties referred to below.

     

    WITNESSETH.

     

    WHEREAS,
      Texas Industries, Inc., a Delaware corporation (the “Borrower”),
      has
      entered into the First Amended and Restated Credit Agreement dated as of
      August 15, 2007, among Bank of America, N.A., as the Administrative Agent
      (hereinafter, the “Administrative
      Agent”),
      the
      Lenders party thereto, Swing Line Lender and L/C Issuer (said Credit Agreement,
      as it may be amended, supplemented, or otherwise modified from time to time,
      the
“Credit
      Agreement”;
      and
      capitalized terms not defined herein but defined therein being used herein
      as
      therein defined); and

     

    WHEREAS,
      the Borrower and each of the Guarantors are members of the same consolidated
      group of companies and are engaged in operations which require financing on
      a
      basis in which credit can be made available from time to time to the Borrower
      and the Guarantors, and the Guarantors will derive direct and indirect economic
      benefit from the Revolving Loans, Swing Line Loans and Letters of Credit under
      the Credit Agreement and financial accommodations made pursuant to Swap
      Contracts and Cash Management Documents; and

     

    WHEREAS,
      it is a condition precedent to the obligation of the Lenders to make Revolving
      Loans and Swing Line Loans and issue Letters of Credit under the Credit
      Agreement and Guarantied Parties to make financial accommodations under Swap
      Contracts and Cash Management Documents that the Guarantors shall have executed
      and delivered this Guaranty; and

     

    WHEREAS,
      the Administrative Agent, the Lenders, any Lender or Affiliate of any Lender
      that is a party to any Swap Contract with the Borrower or any Subsidiary of
      the
      Borrower, any Lender or Affiliate of any Lender that is owed any Cash Management
      Obligation (provided that at the time such Cash Management Obligation arose
      such
      Lender is a party to the Credit Agreement), and the beneficiaries of each
      indemnification obligation undertaken by any Loan Party under any Loan Document
      are herein referred to as the “Guarantied
      Parties”;
      provided that any Person that ceases to be a Lender (and any Affiliate of such
      Person) shall be a Guarantied Party only with respect to transactions under
      Swap
      Contracts that were entered into during or prior to the time that such Person
      was a Lender.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    AGREEMENT.

     

    NOW,
      THEREFORE, in consideration of the premises and to induce the Lenders to make
      Revolving Loans, the Swing Line Lender to make Swing Line Loans and the L/C
      Issuer to issue Letters of Credit and Guarantied Parties to make financial
      accommodations under Swap Contracts and Cash Management Documents, the
      Guarantors hereby agree as follows:

     

    SECTION
      1. Guaranty.
      The
      Guarantors hereby jointly and severally unconditionally and irrevocably
      guarantee the full and prompt payment when due, whether at stated maturity,
      by
      acceleration or otherwise, of, and the performance of, (a) the Obligations,
      whether now or hereafter existing and whether for principal, interest, fees,
      expenses or otherwise, (b) all Swap Obligations owed to any Guarantied
      Party under a Swap Contract, each a “Guarantied
      Swap Contract”),
      (c) all Cash Management Obligations owed to any Lender or any Affiliate of
      such Lender (provided that at the time such Cash Management Obligation arose
      such Lender is a party to the Credit Agreement), (d) any and all
      out-of-pocket expenses (including, without limitation, expenses and reasonable
      counsel fees and expenses of the Administrative Agent and the other Guarantied
      Parties) incurred by any of the Guarantied Parties in enforcing any rights
      under
      this Guaranty or under any other Loan Document, and (e) all present and
      future amounts in respect of the foregoing that would become due but for the
      operation of any provision of Debtor Relief Laws, and all present and future
      accrued and unpaid interest, including, without limitation, all post-petition
      interest if any Loan Party voluntarily or involuntarily becomes subject to
      any
      Debtor Relief Laws (the items set forth in clauses (a), (b), (c), (d) and
      (e) being herein referred to as the “Guarantied
      Obligations”).
      Upon
      failure of the Borrower to pay any of the Guarantied Obligations when due after
      the giving by the Administrative Agent and/or the Guarantied Parties of any
      notice and the expiration of any applicable cure period in each case provided
      for in the Credit Agreement, the other Loan Documents, any Guarantied Swap
      Contract or any Cash Management Document (whether at stated maturity, by
      acceleration or otherwise), the Guarantors hereby further jointly and severally
      agree to promptly pay the same after the Guarantors’ receipt of notice from the
      Administrative Agent of the Borrower’s failure to pay the same, without any
      other demand or notice whatsoever, including without limitation, any notice
      having been given to any Guarantor of either the acceptance by the Guarantied
      Parties of this Guaranty or the creation or incurrence of any of the Guarantied
      Obligations. This Guaranty is an absolute guaranty of payment and performance
      of
      the Guarantied Obligations and not a guaranty of collection, meaning that it
      is
      not necessary for the Guarantied Parties, in order to enforce payment by the
      Guarantors, first or contemporaneously to accelerate payment of any of the
      Guarantied Obligations, to institute suit or exhaust any rights against any
      Loan
      Party, or to enforce any rights against any collateral. Notwithstanding anything
      herein or in any other Loan Document, any Guarantied Swap Contract or any Cash
      Management Document to the contrary, in any action or proceeding involving
      any
      state corporate or other entity Law, or any state or federal bankruptcy,
      insolvency, reorganization or other Law affecting the rights of creditors
      generally, if, as a result of applicable Law relating to fraudulent conveyance
      or fraudulent transfer, including Section 548 of Bankruptcy Code or any
      applicable provisions of comparable state Law (collectively, “Fraudulent
      Transfer Laws”),
      the
      obligations of any Guarantor under this Section 1
      would
      otherwise, after giving effect to (a) all other liabilities of such
      Guarantor, contingent or otherwise, that are relevant under such Fraudulent
      Transfer Laws (specifically excluding, however, any liabilities of such
      Guarantor in respect of intercompany Debt to the Borrower to the extent that
      such Debt would be discharged in an amount equal to the amount paid by such
      Guarantor hereunder) and (b) to the value as assets of such Guarantor (as
      determined under the applicable provisions of such Fraudulent Transfer Laws)
      of
      any rights of subrogation, contribution, reimbursement, indemnity or similar
      rights held by such Guarantor pursuant to (i) applicable requirements of
      Law, (ii) Section 10
      hereof
      or (iii) any other contractual obligations providing for an equitable
      allocation among such Guarantor and other Subsidiaries or Affiliates of the
      Borrower of obligations arising under this Guaranty or other guaranties of
      the
      Guarantied Obligations by such parties, be held or determined to be void,
      invalid or unenforceable, or subordinated to the claims of any other creditors,
      on account of the amount of its liability under this Section 1,
      then
      the amount of such liability shall, without any further action by such
      Guarantor, any Guarantied Party, the Administrative Agent or any other Person,
      be automatically limited and reduced to the highest amount that is valid and
      enforceable and not subordinated to the claims of other creditors as determined
      in such action or proceeding.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    SECTION
      2. Guaranty
      Absolute.
      Each
      Guarantor guarantees that the Guarantied Obligations will be paid strictly
      in
      accordance with the terms of the Credit Agreement, the Notes, the other Loan
      Documents, the Guarantied Swap Contracts and the Cash Management Documents,
      without set-off or counterclaim, and regardless of any Applicable Law now or
      hereafter in effect in any jurisdiction affecting any of such terms or the
      rights of the Guarantied Parties with respect thereto. The liability of each
      Guarantor under this Guaranty shall be absolute and unconditional irrespective
      of:

     

    (a) any
      lack
      of validity or enforceability of any provision of any other Loan Document,
      any
      Guarantied Swap Contract or any Cash Management Document or any other agreement
      or instrument relating to any of the foregoing, or avoidance or subordination
      of
      any of the Guarantied Obligations;

     

    (b) any
      change in the time, manner or place of payment of, or in any other term of,
      or
      any increase in the amount of, all or any of the Guarantied Obligations, or
      any
      other amendment or waiver of any term of, or any consent to departure from
      any
      requirement of, the Credit Agreement, the Notes or any of the other Loan
      Documents, any Guarantied Swap Contract or any Cash Management
      Document;

     

    (c) any
      exchange, release or non-perfection of any Lien on any collateral for, or any
      release of any other Loan Party or amendment or waiver of any term of any other
      guaranty of, or any consent to departure from any requirement of any other
      guaranty of, all or any of the Guarantied Obligations;

     

    (d) the
      absence of any attempt to collect any of the Guarantied Obligations from the
      Borrower or from any other Loan Party or any other action to enforce the same
      or
      the election of any remedy by any of the Guarantied Parties;

     

    (e) any
      waiver, consent, extension, forbearance or granting of any indulgence by any
      of
      the Guarantied Parties with respect to any provision of any other Loan Document,
      any Guarantied Swap Contract or any Cash Management Document;

     

    (f) the
      election by any of the Guarantied Parties in any proceeding under any Debtor
      Relief Law;

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (g) any
      borrowing or grant of a security interest by the Borrower, as
      debtor-in-possession, under any Debtor Relief Law; or

     

    (h) any
      other
      circumstance which might otherwise constitute a legal or equitable discharge
      or
      defense of the Borrower or any Guarantor other than payment or performance
      of
      the Guarantied Obligations.

     

    SECTION
      3. Waiver.

     

    (a) Each
      Guarantor hereby (i) waives (A) promptness, diligence, and, except as
      otherwise provided herein, notice of acceptance and any and all other notices,
      including, without limitation, notice of intent to accelerate and notice of
      acceleration, with respect to any of the Guarantied Obligations or this
      Guaranty, (B) any requirement that any of the Guarantied Parties protect,
      secure, perfect or insure any security interest in or other Lien on any property
      subject thereto or exhaust any right or take any action against the Borrower
      or
      any other Person or any collateral, (C) the filing of any claim with a
      court in the event of receivership or bankruptcy of the Borrower or any other
      Person, (D) except as otherwise provided herein, protest or notice with
      respect to nonpayment of all or any of the Guarantied Obligations, (E) to
      the extent not prohibited by Law, the benefit of any statute of limitation,
      (F) all demands whatsoever (and any requirement that demand be made on the
      Borrower or any other Person as a condition precedent to such Guarantor’s
      obligations hereunder), (G) all rights by which any Guarantor might be
      entitled to require suit on an accrued right of action in respect of any of
      the
      Guarantied Obligations or require suit against the Borrower or any other
      Guarantor or Person, whether arising pursuant to Section 34.02 of the Texas
      Business and Commerce Code, as amended, Section 17.001 of the Texas Civil
      Practice and Remedies Code, as amended, Rule 31 of the Texas Rules of Civil
      Procedure, as amended, or otherwise, (H) any defense based upon an election
      of
      remedies by any Guarantied Party, or (I) notice of any events or
      circumstances set forth in clauses (a) through (h) of Section 2
      hereof;
      and (ii) covenants and agrees that, except as otherwise agreed by the
      parties, this Guaranty will not be discharged except by (A) complete
      payment and performance of the Guarantied Obligations and any other obligations
      of such Guarantor contained herein or (B) as to any Guarantor, upon the
      sale or other disposition of all of the Equity Interests of such Guarantor
      as
      permitted under the Credit Agreement.

     

    (b) If,
      in
      the exercise of any of its rights and remedies, any of the Guarantied Parties
      shall forfeit any of its rights or remedies, including, without limitation,
      its
      right to enter a deficiency judgment against the Borrower or any other Person,
      whether because of any Applicable Law pertaining to “election of remedies” or
      the like, each Guarantor hereby consents to such action by such Guarantied
      Party
      and waives any claim based upon such action. Any election of remedies which,
      by
      reason of such election, results in the denial or impairment of the right of
      such Guarantied Party to seek a deficiency judgment against the Borrower or
      any
      other Person shall not impair the obligation of such Guarantor to pay the full
      amount of the Guarantied Obligations or any other obligation of such Guarantor
      contained herein.

     

    (c) In
      the
      event any of the Guarantied Parties shall bid at any foreclosure or trustee’s
      sale or at any private sale permitted by Law or under any of the Loan Documents,
      any Guarantied Swap Contract or any Cash Management Document, to the extent
      not
      prohibited by Applicable Law, such Guarantied Party may bid all or less than the
      amount of the Guarantied Obligations and the amount of such bid, if successful,
      need not be paid by such Guarantied Party but shall be credited against the
      Guarantied Obligations.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (d) Each
      Guarantor agrees that notwithstanding the foregoing and without limiting the
      generality of the foregoing if, after the occurrence and during the continuance
      of an Event of Default, the Guarantied Parties are prevented by Applicable
      Law
      from exercising their respective rights to accelerate the maturity of the
      Guarantied Obligations, to collect interest on the Guarantied Obligations,
      or to
      enforce or exercise any other right or remedy with respect to the Guarantied
      Obligations, or the Administrative Agent is prevented from taking any action
      to
      realize on the collateral, such Guarantor agrees to pay to the Administrative
      Agent for the account of the Guarantied Parties, upon demand therefor, for
      application to the Guarantied Obligations, the amount that would otherwise
      have
      been due and payable had such rights and remedies been permitted to be exercised
      by the Guarantied Parties.

     

    (e) Each
      Guarantor hereby assumes responsibility for keeping itself informed of the
      financial condition of the Borrower and of each other Loan Party, and of all
      other circumstances bearing upon the risk of nonpayment of the Guarantied
      Obligations or any part thereof, that diligent inquiry would reveal. Each
      Guarantor hereby agrees that the Guarantied Parties shall have no duty to advise
      any Guarantor of information known to any of the Guarantied Parties regarding
      such condition or any such circumstance. In the event that any of the Guarantied
      Parties in its sole discretion undertakes at any time or from time to time
      to
      provide any such information to any Guarantor, such Guarantied Party shall
      be
      under no obligation (i) to undertake any investigation not a part of its
      regular business routine, (ii) to disclose any information which, pursuant
      to accepted or reasonable banking or commercial finance practices, such
      Guarantied Party wishes to maintain as confidential, or (iii) to make any
      other or future disclosures of such information or any other information to
      such
      Guarantor.

     

    (f) Each
      Guarantor consents and agrees that the Guarantied Parties shall be under no
      obligation to marshal any assets in favor of any Guarantor or any other Loan
      Party or otherwise in connection with obtaining payment of any or all of the
      Guarantied Obligations from any Person or source.

     

    SECTION
      4. Representations
      and Warranties.
      Each
      Guarantor hereby represents and warrants to the Guarantied Parties that the
      representations and warranties set forth in Article V
      of the
      Credit Agreement as they relate to such Guarantor or to the Loan Documents
      to
      which such Guarantor is a party are true and correct in all material respects
      in
      the manner specified in the Credit Agreement and the Guarantied Parties shall
      be
      entitled to rely on each of them as if they were fully set forth
      herein.

     

    SECTION
      5. Amendments,
      Etc.
      No
      amendment or waiver of any provision of this Guaranty, and no consent to any
      departure by any Guarantor herefrom shall in any event be effective unless
      the
      same shall be in writing, approved by the Required Lenders (or by all the
      Lenders where the approval of each Lender is required under the Credit
      Agreement) and signed by the Administrative Agent, and then such waiver or
      consent shall be effective only in the specific instance and for the specific
      purpose for which given.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    SECTION
      6. Addresses
      for Notices.
      All
      notices and other communications provided for hereunder shall be effectuated
      in
      the manner provided for in Section 10.02
      of the
      Credit Agreement; provided,
      that if
      a notice or communication hereunder is sent to a Guarantor, said notice shall
      be
      addressed to such Guarantor, in care of the Borrower at the Borrower’s then
      current address (or facsimile number) for notice under the Credit
      Agreement.

     

    SECTION
      7. No
      Waiver; Remedies.

     

    (a) No
      failure on the part of any Guarantied Party to exercise, and no delay in
      exercising, any right hereunder shall operate as a waiver thereof; nor shall
      any
      single or partial exercise of any right hereunder preclude any other or further
      exercise thereof or the exercise of any other right. The remedies herein
      provided are cumulative and not exclusive of any remedies provided by Applicable
      Law or any of the other Loan Documents, any Guarantied Swap Contract or any
      Cash
      Management Document.

     

    (b) No
      waiver
      by the Guarantied Parties of any default shall operate as a waiver of any other
      default or the same default on a future occasion, and no action by any of the
      Guarantied Parties permitted hereunder shall in way affect or impair any of
      the
      rights of the Guarantied Parties or the obligations of any Guarantor under
      this
      Guaranty or under any of the other Loan Documents, any Guarantied Swap Contract
      or any Cash Management Document, except as specifically set forth in any such
      waiver. Any determination by a court of competent jurisdiction of the amount
      of
      any principal and/or interest or other amount constituting any of the Guarantied
      Obligations shall be conclusive and binding on each Guarantor irrespective
      of
      whether such Guarantor was a party to the suit or action in which such
      determination was made, provided that the Borrower was so a party.

     

    SECTION
      8. Right
      of Set-off.
      Upon
      the occurrence and during the continuance of any Event of Default under the
      Credit Agreement, each of the Guarantied Parties is hereby authorized at any
      time and from time to time, to the fullest extent permitted by Applicable Law,
      to set-off and apply any and all deposits (general or special (except trust
      and
      escrow accounts), time or demand, provisional or final) at any time held and
      other Debt at any time owing by such Guarantied Party to or for the credit
      or
      the account of each Guarantor against any and all of the obligations of such
      Guarantor now or hereafter existing under this Guaranty, irrespective of whether
      or not such Guarantied Party shall have made any demand under this Guaranty
      and
      although such obligations may be contingent and unmatured; provided,
      however,
      such
      Guarantied Party shall promptly notify such Guarantor and the Borrower after
      such set-off and the application made by such Guarantied Party. The rights
      of
      each Guarantied Party under this Section 8
      are in
      addition to other rights and remedies (including, without limitation, other
      rights of set-off) which such Guarantied Party may have.

     

    SECTION
      9. Continuing
      Guaranty; Transfer of Notes.
      This
      Guaranty (a)(i) is a continuing guaranty and shall remain in full force and
      effect until the date upon which all Guarantied Obligations are finally paid
      in
      full, the Commitments are terminated and all Letters of Credit and Guarantied
      Swap Contracts have expired or terminated (the “Release
      Date”)
      and
      (ii) binding upon each Guarantor, its permitted successors and assigns, and
      (b) inures to the benefit of and be enforceable by the Guarantied Parties
      and their respective successors, permitted transferees, and permitted assigns.
      Without limiting the generality of the foregoing clause (b), each of the
      Guarantied Parties may assign or otherwise transfer any Note held by it or
      the
      Guarantied Obligations owed to it to any other Person, and such other Person
      shall thereupon become vested with all the rights in respect thereof granted
      to
      such Guarantied Party herein or otherwise with respect to such of the Notes
      and
      the Guarantied Obligations so transferred or assigned, subject, however, to
      compliance with the provisions of Section 10.06
      of the
      Credit Agreement in respect of assignments. No Guarantor may assign any of
      its
      obligations under this Guaranty without first obtaining the written consent
      of
      the Lenders as set forth in the Credit Agreement.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    SECTION
      10. Reimbursement.
      To the
      extent that any Guarantor shall be required hereunder to pay a portion of the
      Guarantied Obligations exceeding the greater of (a) the amount of the
      economic benefit actually received by such Guarantor from the Loans, the Letters
      of Credit, Guarantied Swap Contracts and Cash Management Documents and
      (b) the amount such Guarantor would otherwise have paid if such Guarantor
      had paid the aggregate amount of the Guarantied Obligations (excluding the
      amount thereof repaid by the Borrower) in the same proportion as such
      Guarantor’s net worth at the date enforcement is sought hereunder bears to the
      aggregate net worth of all the Guarantors at the date enforcement is sought
      hereunder, then such Guarantor shall be reimbursed by such other Guarantors
      for
      the amount of such excess, pro rata, based on the respective net worths of
      such
      other Guarantors at the date enforcement hereunder is sought. Notwithstanding
      anything to the contrary, each Guarantor agrees that the Guarantied Obligations
      may at any time and from time to time exceed the amount of the liability of
      such
      Guarantor hereunder without impairing its guaranty herein or effecting the
      rights and remedies of the Guarantied Parties hereunder. This Section 10
      is
      intended only to define the relative rights of the Guarantors, and nothing
      set
      forth in this Section 10
      is
      intended to or shall impair the obligations of the Guarantors, jointly and
      severally, to pay to the Guarantied Parties the Guarantied Obligations as and
      when the same shall become due and payable in accordance with the terms
      hereof.

     

    SECTION
      11. Application
      of Payments.
      All
      amounts and property received by Administrative Agent and Guarantied Parties
      pursuant to this Guaranty (including amounts and property received or applied
      pursuant to Section 8
      or
      application of other rights of set-off) shall be applied as provided in
Section 8.03
      of the
      Credit Agreement.

     

    SECTION
      12. Reinstatement.
      This
      Guaranty shall remain in full force and effect and continue to be effective
      should any petition be filed by or against any Loan Party for liquidation or
      reorganization, should any Loan Party become insolvent or make an assignment
      for
      the benefit of creditors or should a receiver or trustee be appointed for all
      or
      any significant part of any Loan Party’s assets, and shall, to the fullest
      extent permitted by Applicable Law, continue to be effective or be reinstated,
      as the case may be, if at any time payment and performance of the Guarantied
      Obligations, or any part thereof, is, pursuant to Applicable Law, rescinded
      or
      reduced in amount, or must otherwise be restored or returned by any obligees
      of
      the Guarantied Obligations or such part thereof, whether as a “voidable
      preference,” “fraudulent transfer,” or otherwise, all as though such payment or
      performance had not been made. In the event that any payment, or any part
      thereof, is rescinded, reduced, restored or returned, the Guarantied Obligations
      shall, to the fullest extent permitted by Law, be reinstated and deemed reduced
      only by such amount paid and not so rescinded, reduced, restored or
      returned.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    SECTION
      13. GOVERNING
      LAW.
      

     

    (a) THIS
      GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
      THE
      STATE OF TEXAS APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN
      SUCH STATE; AND APPLICABLE FEDERAL LAW. 

     

    (b) EACH
      GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH GUARANTIED PARTY IRREVOCABLY AND
      UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE
      JURISDICTION OF THE COURTS OF THE STATE OF TEXAS SITTING IN DALLAS COUNTY AND
      OF
      THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS (DALLAS
      DIVISION), AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING
      ARISING OUT OF OR RELATING TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT, OR
      FOR
      RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH GUARANTOR, THE
      ADMINISTRATIVE AGENT AND EACH GUARANTIED PARTY IRREVOCABLY AND UNCONDITIONALLY
      AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD
      AND DETERMINED IN SUCH TEXAS STATE COURT OR, TO THE FULLEST EXTENT PERMITTED
      BY
      APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH GUARANTOR, THE ADMINISTRATIVE AGENT
      AND EACH GUARANTIED PARTY AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR
      PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY
      SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS
      GUARANTY OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE
      ADMINISTRATIVE AGENT OR ANY OTHER GUARANTIED PARTY MAY OTHERWISE HAVE TO BRING
      ANY ACTION OR PROCEEDING RELATING TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT
      AGAINST ANY GUARANTOR OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS
      OF
      ANY JURISDICTION.

     

    (c) EACH
      GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH GUARANTIED PARTY IRREVOCABLY AND
      UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
      ANY
      OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION
      OR PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY OR ANY OTHER LOAN
      DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (c) OF THIS SECTION. EACH
      GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH GUARANTIED PARTY HEREBY IRREVOCABLY
      WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN
      INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH
      COURT.

     

    (d) EACH
      GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH GUARANTIED PARTY WAIVES PERSONAL
      SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY
      OTHER MEANS PERMITTED BY THE LAW OF THE STATE OF TEXAS.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    SECTION
      14. Waiver
      of Right to Trial by Jury.
      EACH
      GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH GUARANTIED PARTY HEREBY EXPRESSLY
      WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF
      ACTION ARISING UNDER THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR IN ANY WAY
      CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO,
      ANY GUARANTIED PARTY OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE
      TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
      ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH
      GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH GUARANTIED PARTY HEREBY AGREES
      AND
      CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED
      BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS GUARANTY AND ANY
      GUARANTIED PARTY MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION
      WITH
      ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH GUARANTOR, THE
      ADMINISTRATIVE AGENT AND EACH GUARANTIED PARTY TO THE WAIVER OF THEIR RIGHT
      TO
      TRIAL BY JURY. 

     

    SECTION
      15. Section
      Titles.
      The
      Section titles contained in this Guaranty are and shall be without substantive
      meaning or content of any kind whatsoever and are not to be used in
      interpretation of this Guaranty.

     

    SECTION
      16. Execution
      in Counterparts.
      This
      Guaranty may be executed in any number of counterparts (and by different parties
      hereto in separate counterparts), each of which when so executed and delivered
      shall be deemed to be an original, all of which taken together shall constitute
      one and the same Guaranty.

     

    SECTION
      17. Miscellaneous.
      All
      references herein to the Borrower or to any Guarantor shall include their
      respective successors and assigns, including, without limitation, a receiver,
      trustee or debtor-in-possession of or for the Borrower or such Guarantor. All
      references to the singular shall be deemed to include the plural where the
      context so requires.

     

    SECTION
      18. Subrogation
      and Subordination.

     

    (a) Subrogation.
      Notwithstanding any reference to subrogation contained herein to the contrary,
      each Guarantor hereby irrevocably agrees that until the Release Date that such
      Guarantor shall not exercise any claim or other rights which it may have or
      hereafter acquire against the Borrower that arise from the existence, payment,
      performance or enforcement of such Guarantor’s obligations under this Guaranty,
      including, without limitation, any right of subrogation, reimbursement,
      exoneration, contribution, indemnification, any right to participate in any
      claim or remedy of any Guarantied Party against the Borrower or any collateral
      which any Guarantied Party now has or hereafter acquires, whether or not such
      claim, remedy or right arises in equity, or under contract, statutes or common
      law, including without limitation, the right to take or receive from the
      Borrower, directly or indirectly, in cash or other property or by set-off or
      in
      any other manner, payment or security on account of such claim or other rights.
      If any amount shall be paid to any Guarantor in violation of the preceding
      sentence and the Guarantied Obligations shall not have been paid in full, such
      amount shall be deemed to have been paid to such Guarantor for the benefit
      of,
      and held in trust for the benefit of, the Guarantied Parties, and shall
      forthwith be paid to the Administrative Agent to be credited and applied upon
      the Guarantied Obligations, whether matured or unmatured, in accordance with
      the
      terms of the Credit Agreement. Each Guarantor acknowledges that it will receive
      direct and indirect benefits from the financing arrangements contemplated by
      the
      Credit Agreement and that the waiver set forth in this Section 18
      is
      knowingly made in contemplation of such benefits.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (b) Subordination.
      With
      respect to each Guarantor, all debt and other liabilities of the Borrower or
      any
      other Loan Party to such Guarantor (“Loan
      Party Debt”)
      are
      expressly subordinate and junior to the Guarantied Obligations and any
      instruments evidencing the Loan Party Debt to the extent provided
      below.

     

    (i) Until
      the
      Release Date, each Guarantor agrees that it will not request, demand, accept,
      or
      receive (by set-off or other manner) any payment amount, credit or reduction
      of
      all or any part of the amounts owing under the Loan Party Debt or any security
      therefor, except as specifically allowed pursuant to clause (ii)
      below;

     

    (ii) Notwithstanding
      the provisions of clause (i) above, the Borrower and each other Loan Party
      may pay to such Guarantor and such Guarantor may request, demand, accept and
      receive and retain from the Borrower or such other Loan Party payments, credits
      or reductions of all or any part of the amounts owing under the Loan Party
      Debt
      or any security therefor on the Loan Party Debt, provided that the Borrower’s
      and such other Loan Party’s right to pay and such Guarantor’s right to receive
      any such amount shall automatically and be immediately suspended and cease
      (A) upon the occurrence and during the continuance of an Event of Default
      or (B) if, after taking into account the effect of such payment, an Event
      of Default would occur and be continuing. Such Guarantor’s right to receive
      amounts under this clause (ii) (including any amounts which theretofore may
      have been suspended) shall automatically be reinstated at such time as the
      Event
      of Default which was the basis of such suspension has been cured or waived
      (provided that no subsequent Event of Default has occurred) or such earlier
      date, if any, as the Administrative Agent gives notice to the Guarantors of
      reinstatement by the Required Lenders, in the Required Lenders’ sole
      discretion;

     

    (iii) If
      any
      Guarantor receives any payment on the Loan Party Debt in violation of this
      Guaranty, such Guarantor will hold such payment in trust for the Guarantied
      Parties and will immediately deliver such payment to the Administrative Agent;
      and

     

    (iv) In
      the
      event of the commencement or joinder of any suit, action or proceeding of any
      type (judicial or otherwise) or proceeding under any Debtor Relief Law against
      the Borrower or any other Loan Party (an “Insolvency
      Proceeding”)
      and
      subject to court orders issued pursuant to the applicable Debtor Relief Law,
      the
      Guarantied Obligations shall first be paid, discharged and performed in full
      before any payment or performance is made upon the Loan Party Debt
      notwithstanding any other provisions which may be made in such Insolvency
      Proceeding. In the event of any Insolvency Proceeding, each Guarantor will
      at
      any time prior to the Release Date (A) file, at the request of any
      Guarantied Party, any claim, proof of claim or similar instrument necessary
      to
      enforce the Borrower’s or such other Loan Party’s obligation to pay the Loan
      Party Debt, and (B) hold in trust for and pay to the Administrative Agent,
      for the benefit of Guarantied Parties, any and all monies, obligations,
      property, stock dividends or other assets received in any such proceeding on
      account of the Loan Party Debt in order that the Guarantied Parties may apply
      such monies or the cash proceeds of such other assets to the Guarantied
      Obligations.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    SECTION
      19. Guarantor
      Insolvency.
      Should
      any Guarantor voluntarily seek, consent to, or acquiesce in the benefits of
      any
      Debtor Relief Law or become a party to or be made the subject of any proceeding
      provided for by any Debtor Relief Law (other than as a creditor or claimant)
      that could suspend or otherwise adversely affect the rights of any Guarantied
      Party granted hereunder, then, the obligations of such Guarantor under this
      Guaranty shall be, as between such Guarantor and such Guarantied Party, a
      fully-matured, due, and payable obligation of such Guarantor to such Guarantied
      Party (without regard to whether there is an Event of Default under the Credit
      Agreement or whether any part of the Guarantied Obligations is then due and
      owing by the Borrower to such Guarantied Party), payable in full by such
      Guarantor to the Administrative Agent, for the benefit of such Guarantied Party,
      upon demand, which shall be the estimated amount owing in respect of the
      contingent claim created hereunder.

     

    SECTION
      20. Rate
      Provision.
      It is
      not the intention of any Guarantied Party to make an agreement violative of
      the
      Laws of any applicable jurisdiction relating to usury. Regardless of any
      provision in this Guaranty, no Guarantied Party shall ever be entitled to
      contract, charge, receive, collect or apply, as interest on the Guarantied
      Obligations, any amount in excess of the Highest Lawful Rate. In no event shall
      any Guarantor be obligated to pay any amount in excess of the Highest Lawful
      Rate. If from any circumstance the Administrative Agent or any Guarantied Party
      shall ever receive, collect or apply anything of value deemed excess interest
      under Applicable Law, an amount equal to such excess shall be applied first
      to
      the reduction of the principal amount of outstanding Revolving Loans, Term
      Loans, Swing Line Loans, L/C Borrowings, second to the reduction of principal
      of
      any other Guarantied Obligations, and third any remainder shall be promptly
      refunded to the payor. In determining whether or not interest paid or payable
      with respect to the Guarantied Obligations, under any specified contingency,
      exceeds the Highest Lawful Rate, the Guarantors and the Guarantied Parties
      shall, to the maximum extent permitted by Applicable Law, (a) characterize
      any non-principal payment as an expense, fee or premium rather than as interest,
      (b) amortize, prorate, allocate and spread the total amount of interest
      throughout the full term of such Guarantied Obligations so that the interest
      paid on account of such Guarantied Obligations does not exceed the Highest
      Lawful Rate and/or (c) allocate interest between portions of such
      Guarantied Obligations; provided, that if the Guarantied Obligations are paid
      and performed in full prior to the end of the full contemplated term thereof,
      and if the interest received for the actual period of existence thereof exceeds
      the Highest Lawful Rate, the Guarantied Parties shall refund to the payor the
      amount of such excess or credit the amount of such excess against the total
      principal amount owing, and, in such event, no Guarantied Party shall be subject
      to any penalties provided by any laws for contracting for, charging or receiving
      interest in excess of the Highest Lawful Rate.

     

    SECTION
      21. Severability.
      Any
      provision of this Guaranty which is for any reason prohibited or found or held
      invalid or unenforceable by any court or Governmental Authority shall be
      ineffective to the extent of such prohibition or invalidity or unenforceability,
      without invalidating the remaining provisions hereof in such jurisdiction or
      affecting the validity or enforceability of such provision in any other
      jurisdiction.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    SECTION
      22. Additional
      Guarantors.
      Upon
      the execution and delivery by any other Person of a Guaranty Supplement in
      substantially the form of Exhibit A
      (each, a
“Guaranty
      Supplement”),
      such
      Person shall become a “Guarantor” hereunder with the same force and effect as if
      originally named as a Guarantor herein. The execution and delivery of any
      Guaranty Supplement shall not require the consent of any other Guarantor. The
      rights and obligations of each Guarantor hereunder shall remain in full force
      and effect notwithstanding the addition of any new Guarantor as a party to
      this
      Guaranty.

     

    SECTION
      23. ENTIRE
      AGREEMENT.
      THIS
      GUARANTY AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE
      PARTIES REGARDING THE SUBJECT MATTER HEREIN AND MAY NOT BE CONTRADICTED BY
      EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
      THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

     

    SECTION
      24. Conflicts.
      If in
      the event of a conflict between the terms and conditions of this Guaranty and
      the terms and conditions of the Credit Agreement, the terms and conditions
      of
      the Credit Agreement shall control.

     

    SECTION
      25. Taxes.

     

    (a) Except
      as
      provided below in this Section 25,
      any and
      all payments by each Guarantor to or for the account of the Administrative
      Agent
      or any Lender under this Guaranty, any other Loan Document or any Guarantied
      Swap Contract shall be made free and clear of and without deduction for any
      and
      all present or future taxes, duties, levies, imposts, deductions, assessments,
      fees, withholdings or similar charges, now or thereafter imposed, and all
      liabilities with respect thereto, excluding, in the case of any Guarantied
      Party, or its applicable lending office, or any branch or affiliate thereof,
      taxes imposed on or measured by its net income (including net income taxes
      imposed by means of a backup withholding tax) franchise taxes, branch taxes,
      taxes on doing business or taxes measured by or imposed upon the overall capital
      or net worth of any Guarantied Party or its applicable lending office, or any
      branch or affiliate thereof, in each case imposed: (i) by the jurisdiction
      under the laws of which the Administrative Agent, or such Lender, applicable
      lending office, branch or affiliate is organized or is located, or in which
      the
      principal executive office of any Guarantied Party is located, or any nation
      within which such jurisdiction is located or any political subdivision thereof;
      or (ii) by reason of any present or former connection between the
      jurisdiction imposing such tax and such Guarantied Party, applicable lending
      office, branch or affiliate other than a connection arising solely from such
      Guarantied Party having executed, delivered or performed its obligation under,
      or received payment under or enforced this Agreement (all such non-excluded
      taxes, duties, levies, imposts, deductions, assessments, fees, withholdings
      or
      similar charges, and liabilities being hereinafter referred to as “Taxes”).
      If
      any Guarantor shall be required by any Laws to deduct any Taxes from or in
      respect of any sum payable under this Guaranty, any other Loan Document or
      any
      Guarantied Swap Contract to any Guarantied Party, (i) the sum payable shall
      be increased as necessary to yield to such Guarantied Party an amount equal
      to
      the sum it would have received had no such deductions been made, (ii) such
      Guarantor shall make such deductions, (iii) such Guarantor shall pay the
      full amount deducted to the relevant taxation authority or other authority
      in
      accordance with applicable Laws, and (iv) within 30 days after the date of
      such payment, such Guarantor shall furnish to the Administrative Agent (which
      shall forward the same to such Guarantied Party) the original or a certified
      copy of a receipt evidencing payment thereof; provided,
      however,
      that
      such Guarantor shall be entitled to deduct and withhold any Taxes and shall
      not
      be required to increase any such amounts payable to any Guarantied Party with
      respect to Taxes (i) that are directly attributable to such Guarantied
      Party’s failure to comply with the requirements of Section 3.06(a)
      of the
      Credit Agreement or (ii) that are U.S. withholding taxes imposed on amounts
      payable to such Lender at the time such Guarantied Party becomes a party to
      the
      Credit Agreement.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (b) In
      addition, each Guarantor agrees to pay any and all present or future stamp,
      court or documentary taxes and any other excise or property taxes or charges
      or
      similar levies which arise from any payment made under this Guaranty, any other
      Loan Document or any Guarantied Swap Contract or from the execution, delivery,
      performance, enforcement or registration of, or otherwise with respect to,
      this
      Guaranty, any other Loan Document or any Guarantied Swap Contract, except that
      no Guarantor shall be obligated to pay any such taxes, charges or similar levies
      that are incurred or payable by any Person in connection with any assignment
      referred to in Section 10.06(b)
      of the
      Credit Agreement, any participation referred to in Section 10.06(d)
      of the
      Credit Agreement or any pledge or security interest referred to in Section 10.06(f)
      of the
      Credit Agreement (such taxes, charges and similar levies with respect to which
      the Guarantors are obligated to pay are hereinafter referred to as “Other
      Taxes”).

     

    (c) If
      any
      Guarantor shall be required to pay any Taxes or Other Taxes from or in respect
      of any sum payable under this Guaranty, any other Loan Document or any
      Guarantied Swap Contract to any Guarantied Party, such Guarantor shall also
      pay
      to the Administrative Agent (for the account of such Guarantied Party) or to
      such Guarantied Party, but without duplication in respect of such amounts
      payable hereunder, at the time interest on the Guarantied Obligations is paid,
      such additional amount that such Guarantied Party specifies as necessary to
      preserve the after-tax yield (after factoring in all taxes, including taxes
      imposed on or measured by net income) such Guarantied Party would have received
      if such Taxes or Other Taxes had not been imposed.

     

    (d) Each
      Guarantor agrees to indemnify each Guarantied Party for (i) the full amount
      of Taxes and Other Taxes incurred by or on account of any obligation of such
      Guarantor hereunder (including any Taxes or Other Taxes imposed or asserted
      by
      any jurisdiction on amounts payable under this Section) that are paid by such
      Guarantied Party, (ii) amounts payable under Section 25(c)
      and
      (iii) any liability (including penalties, interest and expenses) arising
      therefrom or with respect thereto, in each case whether or not such Taxes or
      Other Taxes were correctly or legally imposed or asserted by the relevant
      Governmental Authority. Payment under this subsection (d) shall be made
      within 30 days after the date the Guarantied Party makes a demand
      therefor.

     

    (e) Any
      Guarantied Party claiming any additional amounts payable pursuant to this
Section 25
      shall
      use its reasonable best efforts (consistent with its internal policy and legal
      and regulatory restrictions) to change the jurisdiction of its lending office,
      if the making of such a change would avoid the need for, or reduce the amount
      of, any such additional amounts which may thereafter accrue and would not,
      in
      the reasonable judgment of such Guarantied Party, be disadvantageous to such
      Guarantied Party.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (f) Each
      Guarantied Party agrees that (i) it will take all reasonable actions by all
      usual means to maintain all exemptions, if any, available to it from United
      States withholding taxes (whether available by treaty, existing administrative
      waiver, by virtue of the location of any Guarantied Party’s lending office) and
      (ii) otherwise cooperate with the Borrower to minimize amounts payable by
      each Guarantor under this Section 25;
      provided,
      however,
      the
      Guarantied Parties shall not be obligated by reason of this Section 25(f)
      to
      contest the payment of any Taxes or Other Taxes or to disclose any information
      regarding its tax affairs or tax computations or reorder its tax or other
      affairs or tax or other planning. Subject to the foregoing, to the extent any
      Guarantor pays sums pursuant to this Section 25
      Guarantied Party receives a refund of any or all of such sums, such refund
      shall
      be promptly paid to such Guarantor, provided that no Default is in existence
      at
      such time. Notwithstanding anything in this Section 24
      to the
      contrary, the demand by any Guarantied Party for the payment of Taxes or Other
      Taxes under this Section 25
      shall
      not include any Taxes or Other Taxes that occurred 180 days prior to the date
      that such Guarantied Party notifies the Borrower of such Taxes or Other Taxes
      no
      later than 180 days after the date that such Guarantied Party had actual
      knowledge of such Taxes or Other Taxes, except to the extent that any such
      Taxes
      or Other Taxes are retroactive according to the terms of the applicable
      provisions related thereto.

     

    (g) The
      obligations of each Guarantor and each Lender or Participant under this
Section 25
      shall
      survive the termination of this Agreement and the payment of the Loans and
      all
      other amounts payable hereunder and under the other Loan Documents.

     

    
      	
              REMAINDER
                OF PAGE LEFT INTENTIONALLY BLANK

            

    

    

    

    
      
        
          
          

          
          

        

        
          14

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    IN
      WITNESS WHEREOF, each Guarantor has caused this Guaranty to be duly executed
      and
      delivered by its duly authorized officer on the date first above
      written.

     

    
      	 	 

              BROOKHOLLOW
                CORPORATION

              BROOK
                HOLLOW PROPERTIES, INC.

              BROOKHOLLOW
                OF ALEXANDRIA, INC.

              BROOKHOLLOW
                OF VIRGINIA, INC.

              SOUTHWESTERN
                FINANCIAL 

              CORPORATION

              CREOLE
                CORPORATION

              PARTIN
                LIMESTONE PRODUCTS, INC.

              RIVERSIDE
                CEMENT HOLDINGS COMPANY

              TXI
                AVIATION, INC.

              TXI
                CEMENT COMPANY

              TXI
                RIVERSIDE INC.

              TXI
                TRANSPORTATION COMPANY

              TXI
                CALIFORNIA INC.

              PACIFIC
                CUSTOM MATERIALS, INC.

              TXI
                POWER COMPANY

              TEXAS
                INDUSTRIES HOLDINGS, LLC

              TEXAS
                INDUSTRIES TRUST

              TXI
                LLC

              TXI
                OPERATING TRUST

            

    

     

     

     

    
      	 	By:  	 
	 	
              

              Kenneth
                R. Allen

              Vice
                President and Treasurer

            

    

     

    

    
      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

    

     

    
      	 	 	 
	 	RIVERSIDE
              CEMENT COMPANY
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Kenneth
                R. Allen

              Assistant
                General Manager - Treasurer 

            

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 	
              TXI
                OPERATIONS, LP

            
	 
 	 
 	 
 
	 	By:	TXI Operating Trust, its general
              partner
	 	 	 
	 	By:  	 
	 	
              

              Kenneth
                R. Allen

              Vice
                President and Treasurer

            

    

    
      
 

    

    NOTICE
      ADDRESS FOR ALL

    GUARANTORS:

    

    1341
      West
      Mockingbird Lane

    Dallas,
      Texas 75247

    
      	 Phone No.:	 (972) 647-6730
	 Fax No.:	 (972) 647-3964
	 Attention:	 Kenneth R.
              Allen

    

    
    

     

     

    
      
        
          
          

          
          

        

        
          17

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    EXHIBIT
      A TO GUARANTY

     

    

    GUARANTY
      SUPPLEMENT NO. ___

     

    THIS
      GUARANTY SUPPLEMENT NO. ___ (this “Guaranty
      Supplement”)
      dated
      as of ___________________, to the Guaranty dated as of August 15, 2007
      (such agreement, together with all amendments and restatements and guaranty
      supplements, the “Guaranty”), among the initial signatories thereto and each
      other Person who from time to time thereafter became a party thereto pursuant
      to
Section 22
      thereof
      (each, individually, a “Guarantor”
and,
      collectively, the “Guarantors”),
      in
      favor of Administrative Agent for the benefit of Guarantied Parties.

     

    BACKGROUND.
      

     

    Capitalized
      terms not otherwise defined herein have the meaning specified in the Guaranty.
      The Guaranty provides that additional parties may become Guarantors under the
      Guaranty by execution and delivery of this form of Guaranty Supplement. Pursuant
      to the provisions of Section 22
      of the
      Guaranty, the undersigned is becoming an Additional Guarantor under the
      Guaranty. The undersigned desires to become a Guarantor under the Guaranty
      in
      order to induce Guarantied Parties to continue to make credit extensions and
      accommodations under the Loan Documents, Guarantied Swap Contracts and Cash
      Management Documents. 

     

    AGREEMENT. 

     

    NOW,
      THEREFORE, in consideration of the premises and to induce the Lenders to make
      Revolving Loans, the Swing Line Lender to make Swing Line Loans and the L/C
      Issuer to issue Letters of Credit and Guarantied Parties to make financial
      accommodations under Swap Contracts and Cash Management Documents, the
      undersigned hereby agrees as follows:

     

    SECTION
      1. In accordance with the Guaranty, the undersigned hereby becomes a Guarantor
      under the Guaranty with the same force and effect as if it were an original
      signatory thereto as a Guarantor and the undersigned hereby (a) agrees to all
      the terms and provisions of the Guaranty applicable to it as a Guarantor
      thereunder and (b) represents and warrants that the representations and
      warranties made by it as a Guarantor thereunder are true and correct on and
      as
      of the date hereof. Each reference to a “Guarantor” or an “Additional Guarantor”
in the Guaranty shall be deemed to include the undersigned.

     

    SECTION
      2. Except as expressly supplemented hereby, the Guaranty shall remain in full
      force and effect in accordance with its terms.

     

    SECTION
      3. THIS GUARANTY SUPPLEMENT AND THE GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED
      IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS APPLICABLE TO AGREEMENTS
      MADE
      AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED,
      THAT
      ADMINISTRATIVE AGENT AND EACH OTHER GUARANTIED PARTY SHALL RETAIN ALL RIGHTS
      ARISING UNDER FEDERAL LAW. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SECTION
      4. This Guaranty Supplement hereby incorporates by reference the provisions
      of
      the Guaranty, which provisions are deemed to be a part hereof, and this Guaranty
      Supplement shall be deemed to be a part of the Guaranty. 

     

    SECTION
      5. This Guaranty Supplement may be executed by the parties hereto in several
      counterparts, each of which shall be deemed to be an original and all of which
      shall constitute together but one and the same agreement. 

     

    
      	
              THE
                REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT
                BLANK.

            

    

    

    

    
      
        
          
          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

     

            EXECUTED
      as of the
      date above first written.

     

    

    
      	 	
              [ADDITIONAL
                GUARANTOR]

            
	 	
               

               

              By:_____________________________      

              Print
                Name:_______________________     

              Print
                Title:________________________     

            

    

    

    

    ACCEPTED
      BY:

    

    BANK
      OF
      AMERICA, N.A.,

    as
      Administrative Agent

    

    

    

    By: ________________________________    

    Print
      Name: __________________________     

    Print
      Title: ___________________________     

     

     

    

    
      
        
          
             

          

          
            C
              -
              1

            Form
              of
              Guaranty

          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    EXHIBIT
      D

     

    OPINION
      MATTERS

     

    The
      matters contained in the following Sections of the Credit Agreement should
      be
      covered by the legal opinion:

     

    
      	•  	
              Section
                5.01(a), (b) and (c)

            

       

      	•  	
              Section
                5.02

            

       

      	•  	
              Section
                5.03

            

       

      	•  	
              Section
                5.04

            

       

      	•  	
              Section
                5.06

            

       

      	•  	
              Section
                5.14(b)

            

    

         

    
      
        
          
            D

            Opinion
              Matters

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    EXHIBIT
      E

     

    FORM
      OF REVOLVING LOAN NOTE

     

    $ _______________,
      _____

     

    FOR
      VALUE
      RECEIVED, Texas Industries, Inc., a Delaware corporation (the “Borrower”),
      hereby promises to pay to the order of ___________________________ (the
“Lender”),
      on
      the Maturity Date (as defined in the First Amended and Restated Credit Agreement
      referred to below) the principal amount of __________________ Dollars
      ($____________),
      or
      such lesser principal amount of Revolving Loans (as defined in such Credit
      Agreement) due and payable by the Borrower to the Lender on the Maturity Date
      under that certain First Amended and Restated Credit Agreement, dated as of
      August 15, 2007 (as amended, extended, supplemented or otherwise modified
      in writing from time to time, the “Agreement;”
the
      terms defined therein being used herein as therein defined), among the Borrower,
      the Lenders from time to time party thereto, and Bank of America, N.A., as
      Administrative Agent, L/C Issuer and Swing Line Lender.

     

    The
      Borrower promises to pay interest on the unpaid principal amount of each
      Revolving Loan from the date of such Revolving Loan until such principal amount
      is paid in full, at such interest rates, and at such times as are specified
      in
      the Agreement. All payments of principal of and interest on this Note shall
      be
      made to the Administrative Agent for the account of the Lender in Dollars in
      immediately available funds at the Administrative Agent’s Office. If any amount
      is not paid in full when due hereunder, such unpaid amount shall bear interest,
      to be paid upon demand, from the due date thereof until the date of actual
      payment (and before as well as after judgment) computed at the per annum rate
      set forth in the Agreement.

     

    This
      Note
      is one of the Revolving Loan Notes referred to in the Agreement, is entitled
      to
      the benefits thereof and is subject to optional and mandatory prepayment in
      whole or in part as provided therein. This Note is also entitled to the benefits
      of the Guaranty. Upon the occurrence of one or more of the Events of Default
      specified in the Agreement, all amounts then remaining unpaid on this Note
      shall
      become, or may be declared to be, immediately due and payable all as provided
      in
      the Agreement. Revolving Loans made by the Lender shall be evidenced by one
      or
      more loan accounts or records maintained by the Lender in the ordinary course
      of
      business. The Lender may also attach schedules to this Note and endorse thereon
      the date, amount, Type and maturity of its Revolving Loans and payments with
      respect thereto.

     

    The
      Borrower, for itself, its successors and assigns, hereby waives diligence,
      presentment, protest and demand and, except for notices for which provision
      is
      expressly made in the Loan Documents, notice of protest, demand, intent to
      accelerate, acceleration, dishonor and non-payment of this Note.

     

    

    
      
        
           

           

          
            E
              -
              1

            Form
              of
              Revolving Loan Note

          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    THIS
      NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
      STATE
      OF TEXAS.

    
      	 	 	 
	 	
              TEXAS
                INDUSTRIES, INC.

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

                    

            

    
      
        	 	Name:	 	 
	 	Title:	 	 

      

       
   

    

    
      
        
           

           

          
            E
              -
              2

            Form
              of
              Revolving Loan Note

          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    REVOLVING
      LOANS AND PAYMENTS WITH RESPECT THERETO

    

      
        	
                Date

                 

              	
                Type
                  of 

                Loan
                  Made

                 

              	
                Amount
                  of 

                Loan
                  Made

                 

              	
                End
                  of Interest Period

                 

              	
                Amount
                  of Principal or Interest Paid This Date

                 

              	
                Outstanding
                  Principal Balance This Date

                 

              	
                Notation
                  Made By

                 

              
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

      

    

     

    
 

    
      
        
          
             

          

          
            E
              -
              3

            Form
              of
              Revolving Loan Note

          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    EXHIBIT
      F

     

    FORM
      OF REVOLVING LOAN NOTICE

     

    Date:
      ___________, _____

     

    To: Bank
      of
      America, N.A., as Administrative Agent

     

    Ladies
      and Gentlemen:

     

    Reference
      is made to that certain First Amended and Restated Credit Agreement, dated
      as of
      August 15, 2007 (as amended, restated, extended, supplemented or otherwise
      modified in writing from time to time, the “Agreement;”
the
      terms defined therein being used herein as therein defined), among Texas
      Industries, Inc.., a Delaware corporation (the “Borrower”),
      the
      Lenders from time to time party thereto, and Bank of America, N.A., as
      Administrative Agent, L/C Issuer and Swing Line Lender.

     

    The
      undersigned hereby requests (select one):

     

    
      	     o  A
              Borrowing of
              Revolving Loans 	 o 
A
              conversion or continuation of Revolving
              Loans

    

    
    

    1. On
      __________________________ (a
      Business Day).

     

    2. In
      the
      amount of $_______________.    .

     

    3. Comprised
      of __________________.     .

           
[Type
      of Revolving Loan
      requested]

     

    4. For
      Eurodollar Rate Loans: with an Interest Period of _____ months.

     

    The
      Revolving Borrowing, if any, requested herein complies with the provisos to
      the
      first sentence of Section
      2.01
      of the
      Agreement.

     

    
      	 	 	 
	 	
              TEXAS
                INDUSTRIES, INC.

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

                    

            

    

    
      	 	Name:	 	 
	 	Title:	 	 

           

    

         

    
      
        
          
             

          

          
            F
              -
              1

            Form
              of
              Revolving Loan Notice

          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    EXHIBIT
      G

     

    FORM
      OF SWING LINE LOAN NOTICE

     

    Date:
      ___________, _____

     

    
      	
              To:

            	
              Bank
                of America, N.A., as Swing Line
                Lender

            

    

     

    Bank
      of
      America, N.A., as Administrative Agent

     

    Ladies
      and Gentlemen:

     

    Reference
      is made to that certain First Amended and Restated Credit Agreement, dated
      as of
      August 15, 2007 (as amended, restated, extended, supplemented or otherwise
      modified in writing from time to time, the “Agreement;”
the
      terms defined therein being used herein as therein defined), among Texas
      Industries, Inc., a Delaware corporation (the “Borrower”),
      the
      Lenders from time to time party thereto, and Bank of America, N.A., as
      Administrative Agent, L/C Issuer and Swing Line Lender.

     

    The
      undersigned hereby requests a Swing Line Loan:

     

    1. On
      _______________________________________ (a Business Day).

     

    2. In
      the
      amount of $_________________.

     

    The
      Swing
      Line Borrowing requested herein complies with the requirements of the provisos
      to the first sentence of Section 2.04(a)
      of the
      Agreement.

    
      	 	 	 
	 	TEXAS
              INDUSTRIES, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              

                    

            

    

    
    

    
      	 	Name:	 	 
	 	Title:	 	 

       

    

     

    
      
        
          
          

          
            G
              -
              1

            Form
              of
              Swing Line Loan Notice

          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    EXHIBIT
      H

     

    FORM
      OF SWING LINE NOTE

     

    
      	$_______________ 	
              _______________,
                2007

            

    

     

     

    FOR
      VALUE
      RECEIVED, TEXAS INDUSTRIES, INC., a Delaware corporation (the “Borrower”),
      hereby promises to pay to the order of BANK OF AMERICA, N.A. (“Swing
      Line Lender”),
      on
      the date when due in accordance with the First Amended and Restated Credit
      Agreement referred to below, the aggregate unpaid principal amount of each
      Swing
      Line Loan from time to time made by the Swing Line Lender to the Borrower under
      that certain First Amended and Restated Credit Agreement, dated as of
      August 15, 2007 (as amended, extended, supplemented or otherwise modified
      in writing from time to time, the “Agreement;”
the
      terms defined therein being used herein as therein defined), among the Borrower,
      the Lenders from time to time party thereto, and Bank of America, N.A., as
      Administrative Agent, L/C Issuer and Swing Line Lender.

     

    The
      Borrower promises to pay interest on the unpaid principal amount of each Swing
      Line Loan from the date of such Swing Line Loan until such principal amount
      is
      paid in full, at such interest rates and at such times as provided in the
      Agreement.

     

    All
      payments of principal of and interest on this Note shall be made to the Swing
      Line Lender in Dollars in immediately available funds at its Lending
      Office.

     

    If
      any
      amount is not paid in full when due hereunder, such unpaid amount shall bear
      interest, to be paid upon demand, from the due date thereof until the date
      of
      actual payment (and before as well as after judgment) computed at the per annum
      rate set forth in the Agreement.

     

    This
      Note
      is the Swing Line Note referred to in the Agreement, is entitled to the benefits
      thereof and is subject to optional and mandatory prepayment in whole or in
      part
      as provided therein. This Note is also entitled to the benefits of the Guaranty.
      Upon the occurrence of one or more of the Events of Default specified in the
      Agreement, all amounts then remaining unpaid on this Note shall become, or
      may
      be declared to be, immediately due and payable all as provided in the Agreement.
      Swing Line Loans made by the Swing Line Lender shall be evidenced by one or
      more
      loan accounts or records maintained by Swing Line Lender in the ordinary course
      of business. The Swing Line Lender may also attach schedules to this Note and
      endorse thereon the date, amount and maturity of the Swing Line Loans and
      payments with respect thereto.

     

    The
      Borrower, for itself, its successors and assigns, hereby waives diligence,
      presentment, protest and demand, and except for notices for which provision
      is
      expressly made in the Loan Documents, notice of protest, demand, intent to
      accelerate, acceleration, dishonor and non-payment of this Note.

     

    

    
      
        
           

           

          
            H
              -
              1

            Form
              of
              Swing Line Note

          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    THIS
      NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
      STATE
      OF TEXAS.

    
      	 	 	 
	 	TEXAS
              INDUSTRIES, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              

                   

            

    

    
      	 	Name:	 	 
	 	Title:	 	 

       

    

     

     

    
      
        
           

           

          
            H
              -
              2

            Form
              of
              Swing Line Note

          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SWING
      LINE LOANS AND PAYMENTS WITH RESPECT THERETO

     

    
      	
              Date

            	
              Amount
                of Loan Made

            	
              Amount
                of Principal or Interest Paid This Date

            	
              Outstanding
                Principal Balance This Date

            	
              Notation
                Made By

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

    
       

      
        
          
          

        

        
          
          

          
            H
              -
              3

            Form
              of
              Swing Line Note

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]