Document:

Exhibit 4.3

 

EXECUTION
COPY

 

 

 

 

B&G FOODS, INC.

 

(f/k/a B&G FOODS
HOLDINGS CORP.)

 

AND EACH OF THE GUARANTORS PARTY HERETO

 

8.0% SENIOR NOTES DUE 2011

 

 

INDENTURE

 

Dated as of October 14, 2004

 

 

The Bank of New York,

 

Trustee

 

 

 

 

 

CROSS-REFERENCE TABLE*

 

	
  Trust
  Indenture

  Act Section

  	
   

  	
  Indenture
  Section

  
	
  310

  	
  (a)(1)

  	
   

  	
  7.10

  
	
   

  	
  (a)(2)

  	
   

  	
  7.10

  
	
   

  	
  (a)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(4)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(5)

  	
   

  	
  7.10

  
	
   

  	
  (b)

  	
   

  	
  7.10

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  311

  	
  (a)

  	
   

  	
  7.11

  
	
   

  	
  (b)

  	
   

  	
  7.11

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  312

  	
  (a)

  	
   

  	
  2.05

  
	
   

  	
  (b)

  	
   

  	
  12.03

  
	
   

  	
  (c)

  	
   

  	
  12.03

  
	
  313

  	
  (a)

  	
   

  	
  7.06

  
	
   

  	
  (b)

  	
   

  	
  7.06; 7.07

  
	
   

  	
  (c)

  	
   

  	
  7.06; 12.02

  
	
   

  	
  (d)

  	
   

  	
  7.06

  
	
  314

  	
  (a)

  	
   

  	
  4.03;12.02;
  12.05

  
	
   

  	
  (b)

  	
   

  	
  10.02

  
	
   

  	
  (c)(1)

  	
   

  	
  12.04

  
	
   

  	
  (c)(2)

  	
   

  	
  12.04

  
	
   

  	
  (c)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
  12.05

  
	
   

  	
  (e)

  	
   

  	
  N.A.

  
	
  315

  	
  (a)

  	
   

  	
  7.01

  
	
   

  	
  (b)

  	
   

  	
  7.05; 12.02

  
	
   

  	
  (c)

  	
   

  	
  7.01

  
	
   

  	
  (d)

  	
   

  	
  7.01

  
	
   

  	
  (e)

  	
   

  	
  6.11

  
	
  316

  	
  (a) (last
  sentence)

  	
   

  	
  2.09

  
	
   

  	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
   

  	
  (a)(2)

  	
   

  	
  N.A.

  

 

N.A. means not applicable.

*  This Cross
Reference Table is not part of the Indenture.

 

i

 

TABLE OF CONTENTS

 

	
  ARTICLE 1

  	
   

  
	
  DEFINITIONS
  AND INCORPORATION

  BY REFERENCE

  	
   

  
	
   

  	
   

  
	
  Section 1.01

  	
  Definitions.

  	
   

  
	
  Section 1.02

  	
  Other Definitions.

  	
   

  
	
  Section 1.03

  	
  Incorporation by Reference of Trust
  Indenture Act.

  	
   

  
	
  Section 1.04

  	
  Rules of Construction.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  
	
  THE NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.01

  	
  Form
  and Dating.

  	
   

  
	
  Section 2.02

  	
  Execution and Authentication.

  	
   

  
	
  Section 2.03

  	
  Registrar and Paying Agent.

  	
   

  
	
  Section 2.04

  	
  Paying Agent to Hold Money in Trust.

  	
   

  
	
  Section 2.05

  	
  Holder Lists.

  	
   

  
	
  Section 2.06

  	
  Transfer and Exchange.

  	
   

  
	
  Section 2.07

  	
  Replacement Notes.

  	
   

  
	
  Section 2.08

  	
  Outstanding Notes.

  	
   

  
	
  Section 2.09

  	
  Treasury Notes.

  	
   

  
	
  Section 2.10

  	
  Temporary Notes.

  	
   

  
	
  Section 2.11

  	
  Cancellation.

  	
   

  
	
  Section 2.12

  	
  Defaulted Interest.

  	
   

  
	
  Section 2.13

  	
  CUSIP Numbers.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
   

  
	
  REDEMPTION AND PREPAYMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.01

  	
  Notices to Trustee.

  	
   

  
	
  Section 3.02

  	
  Selection of Notes to Be Redeemed or
  Purchased.

  	
   

  
	
  Section 3.03

  	
  Notice of Redemption.

  	
   

  
	
  Section 3.04

  	
  Effect of Notice of Redemption.

  	
   

  
	
  Section 3.05

  	
  Deposit of Redemption or Purchase Price.

  	
   

  
	
  Section 3.06

  	
  Notes Redeemed or Purchased in Part.

  	
   

  
	
  Section 3.07

  	
  Optional Redemption.

  	
   

  
	
  Section 3.08

  	
  Mandatory Redemption.

  	
   

  
	
  Section 3.09

  	
  Offer to Purchase by Application of Excess
  Proceeds.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.01

  	
  Payment of Notes.

  	
   

  
	
  Section 4.02

  	
  Maintenance of Office or Agency.

  	
   

  
	
  Section 4.03

  	
  Reports.

  	
   

  
	
  Section 4.04

  	
  Compliance Certificate.

  	
   

  
	
  Section 4.05

  	
  Taxes.

  	
   

  
	
  Section 4.06

  	
  Stay, Extension and Usury Laws.

  	
   

  
	
  Section 4.07

  	
  Restricted Payments.

  	
   

  
	
  Section 4.08

  	
  Dividend and Other Payment Restrictions
  Affecting Subsidiaries.

  	
   

  
	
  Section 4.09

  	
  Incurrence of Indebtedness and Issuance of
  Preferred Stock.

  	
   

  

 

ii

 

	
  Section 4.10

  	
  Asset Sales.

  	
   

  
	
  Section 4.11

  	
  Transactions with Affiliates.

  	
   

  
	
  Section 4.12

  	
  Liens.

  	
   

  
	
  Section 4.13

  	
  Business Activities.

  	
   

  
	
  Section 4.14

  	
  Corporate Existence.

  	
   

  
	
  Section 4.15

  	
  Offer to Repurchase Upon Change of Control.

  	
   

  
	
  Section 4.16

  	
  No Amendment to Subordination Provisions.

  	
   

  
	
  Section 4.17

  	
  Limitation on Sale and Leaseback
  Transactions.

  	
   

  
	
  Section 4.18

  	
  Payments for Consent.

  	
   

  
	
  Section 4.19

  	
  Additional Note Guarantees.

  	
   

  
	
  Section 4.20

  	
  Designation of Restricted and Unrestricted
  Subsidiaries.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  5

  	
   

  
	
  SUCCESSORS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.01

  	
  Merger, Consolidation, or Sale of Assets.

  	
   

  
	
  Section 5.02

  	
  Successor Corporation Substituted.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  6

  	
   

  
	
  DEFAULTS AND REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.01

  	
  Events of Default.

  	
   

  
	
  Section 6.02

  	
  Acceleration.

  	
   

  
	
  Section 6.03

  	
  Other Remedies.

  	
   

  
	
  Section 6.04

  	
  Waiver of Past Defaults.

  	
   

  
	
  Section 6.05

  	
  Control by Majority.

  	
   

  
	
  Section 6.06

  	
  Limitation on Suits.

  	
   

  
	
  Section 6.07

  	
  Rights of Holders of Notes to Receive
  Payment.

  	
   

  
	
  Section 6.08

  	
  Collection Suit by Trustee.

  	
   

  
	
  Section 6.09

  	
  Trustee May File Proofs of Claim.

  	
   

  
	
  Section 6.10

  	
  Priorities.

  	
   

  
	
  Section 6.11

  	
  Undertaking for Costs.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  7

  	
   

  
	
  TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.01

  	
  Duties of Trustee.

  	
   

  
	
  Section 7.02

  	
  Rights of Trustee.

  	
   

  
	
  Section 7.03

  	
  Individual Rights of Trustee.

  	
   

  
	
  Section 7.04

  	
  Trustee’s Disclaimer.

  	
   

  
	
  Section 7.05

  	
  Notice of Defaults.

  	
   

  
	
  Section 7.06

  	
  Reports by Trustee to Holders of the Notes.

  	
   

  
	
  Section 7.07

  	
  Compensation and Indemnity.

  	
   

  
	
  Section 7.08

  	
  Replacement of Trustee.

  	
   

  
	
  Section 7.09

  	
  Successor Trustee by Merger, etc.

  	
   

  
	
  Section 7.10

  	
  Eligibility; Disqualification.

  	
   

  
	
  Section 7.11

  	
  Preferential Collection of Claims Against
  Company.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  8

  	
   

  
	
  LEGAL DEFEASANCE AND COVENANT DEFEASANCE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.01

  	
  Option to Effect Legal Defeasance or
  Covenant Defeasance.

  	
   

  
	
  Section 8.02

  	
  Legal Defeasance and Discharge.

  	
   

  
	
  Section 8.03

  	
  Covenant Defeasance.

  	
   

  
	
  Section 8.04

  	
  Conditions to Legal or Covenant Defeasance.

  	
   

  

 

iii

 

	
  Section 8.05

  	
  Deposited Money and Government Securities
  to be Held in Trust; Other Miscellaneous Provisions.

  	
   

  
	
  Section 8.06

  	
  Repayment to Company.

  	
   

  
	
  Section 8.07

  	
  Reinstatement.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  9

  	
   

  
	
  AMENDMENT,
  SUPPLEMENT AND WAIVER

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.01

  	
  Without Consent of Holders of Notes.

  	
   

  
	
  Section 9.02

  	
  With Consent of Holders of Notes.

  	
   

  
	
  Section 9.03

  	
  Compliance with Trust Indenture Act.

  	
   

  
	
  Section 9.04

  	
  Revocation and Effect of Consents.

  	
   

  
	
  Section 9.05

  	
  Notation on or Exchange of Notes.

  	
   

  
	
  Section 9.06

  	
  Trustee to Sign Amendments, etc.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  10

  	
   

  
	
  NOTE
  GUARANTEES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.01

  	
  Guarantee.

  	
   

  
	
  Section 10.02

  	
  Limitation on Guarantor Liability.

  	
   

  
	
  Section 10.03

  	
  Execution and Delivery of Note Guarantee.

  	
   

  
	
  Section 10.04

  	
  Guarantors May Consolidate, etc., on
  Certain Terms.

  	
   

  
	
  Section 10.05

  	
  Releases.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  11

  	
   

  
	
  SATISFACTION AND DISCHARGE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.01

  	
  Satisfaction and Discharge.

  	
   

  
	
  Section 11.02

  	
  Application of Trust Money.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  12

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 12.01

  	
  Trust Indenture Act Controls.

  	
   

  
	
  Section 12.02

  	
  Notices.

  	
   

  
	
  Section 12.03

  	
  Communication by Holders of Notes with
  Other Holders of Notes.

  	
   

  
	
  Section 12.04

  	
  Certificate and Opinion as to Conditions
  Precedent.

  	
   

  
	
  Section 12.05

  	
  Statements Required in Certificate or
  Opinion.

  	
   

  
	
  Section 12.06

  	
  Rules by Trustee and Agents.

  	
   

  
	
  Section 12.07

  	
  No Personal Liability of Directors,
  Officers, Employees and Stockholders.

  	
   

  
	
  Section 12.08

  	
  Governing Law.

  	
   

  
	
  Section 12.09

  	
  No Adverse Interpretation of Other
  Agreements.

  	
   

  
	
  Section 12.10

  	
  Successors.

  	
   

  
	
  Section 12.11

  	
  Severability.

  	
   

  
	
  Section 12.12

  	
  Counterpart Originals.

  	
   

  
	
  Section 12.13

  	
  Table of Contents, Headings, etc.

  	
   

  
	
  Section 12.14

  	
  Waiver of Jury Trial.

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  FORM OF NOTE

  	
   

  
	
  Exhibit
  B

  	
  FORM
  OF NOTATION OF GUARANTEE

  	
   

  
	
  Exhibit
  C

  	
  FORM
  OF SUPPLEMENTAL INDENTURE

  	
   

  

 

iv

 

INDENTURE dated as of
October 14, 2004 among B&G Foods, Inc. (f/k/a B&G Foods Holdings Corp.),
a Delaware corporation, the Guarantors (as defined) and The Bank of New York, a
New York banking corporation, as trustee.

 

The Company, the Guarantors and the Trustee agree as
follows for the benefit of each other and for the equal and ratable benefit of
the Holders (as defined) of the  8.0%
Senior Notes due 2011 (the “Notes”):

 

ARTICLE 1

DEFINITIONS AND INCORPORATION

BY REFERENCE

 

Section 1.01           Definitions.

 

“Acquired Debt” means, with
respect to any specified Person:

 

(1) Indebtedness of any other Person
existing at the time such other Person is merged with or into or became a
Subsidiary of such specified Person, whether or not such Indebtedness is
incurred in connection with, or in contemplation of, such other Person merging
with or into, or becoming a Restricted Subsidiary of, such specified Person;
and

 

(2) Indebtedness secured by a Lien
encumbering any asset acquired by such specified Person.

 

provided
that the amount of Acquired Debt only at the time so acquired
will include the accreted value together with any interest thereon that is more
than 30 days past due; provided, further, that
Indebtedness of such other Person that is redeemed, defeased, retired or
otherwise repaid at the time, or immediately upon consummation, of the
transaction by which such other Person is merged with or into or became a
Restricted Subsidiary of such Person will not be Acquired Debt.

 

“Additional Notes” means Notes
(other than the Initial Notes) issued under this Indenture in accordance with
Sections 2.02 and 4.09 hereof, as part of the same series as the Initial Notes.

 

“Affiliate” of any specified
Person means any other Person directly or indirectly controlling or controlled
by or under direct or indirect common control with such specified Person. For
purposes of this definition, “control,” as used with respect to any Person,
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of such Person, whether through the
ownership of voting securities, by agreement or otherwise; provided
that beneficial ownership of 10% or more of the Voting Stock of a Person will
be deemed to be control.  For purposes of
this definition, the terms “controlling,” “controlled by” and “under common control with”
have correlative meanings.

 

“Agent” means any Registrar,
co-registrar, Paying Agent or additional paying agent.

 

 “Applicable
Procedures” means, with respect to any transfer or exchange
of or for beneficial interests in any Global Note, the rules and procedures of
the Depositary, Euroclear and Clearstream that apply to such transfer or
exchange.

 

“Asset Sale”
means

 

(1) the sale, lease,
conveyance or other disposition of any assets or rights; provided that the sale, lease, conveyance
or other disposition of all or substantially all of the assets of the

 

1

 

Company and its
Restricted Subsidiaries taken as a whole will be governed by Section 4.15
hereof and/or Section 5.01 hereof and not Section 4.10 hereof; and

 

(2) the issuance or sale
of Equity Interests in any of the Company’s Restricted Subsidiaries (other than
directors’ qualifying shares or shares required by applicable law to be held by
a Person other than the Company or a Restricted Subsidiary) or the sale of
Equity Interests in any of its Subsidiaries.

 

Notwithstanding the
preceding, none of the following items will be deemed to be an Asset Sale:

 

(1) any single
transaction or series of related transactions that involves (a) assets having a
Fair Market Value of less than $1.5 million or (b) Net Proceeds of less than
$1.5 million;

 

(2) a transfer of assets
between or among the Company and its Restricted Subsidiaries;

 

(3) an issuance of Equity
Interests by a Restricted Subsidiary of the Company to the Company or to a
Restricted Subsidiary of the Company;

 

(4) the sale, lease,
conveyance or other disposition of products, services, inventory, equipment or
accounts receivable in the ordinary course of business, including any sale or
other disposition of damaged, worn-out, obsolete, negligible or surplus assets
in the ordinary course of business;

 

(5) the sale or other
disposition of cash or Cash Equivalents;

 

(6) the surrender or
waiver of contract rights, the settlement, release or surrender of contract,
tort or other litigation claims in the ordinary course of business, and the
granting of (or permitted realization of) Liens not prohibited by this
Indenture; and

 

(7)  a
Restricted Payment that complies with Section 4.07 hereof or a Permitted
Investment.

 

“Attributable Debt” in respect of
a sale and leaseback transaction means, at the time of determination, the
present value of the obligation of the lessee for net rental payments during
the remaining term of the lease included in such sale and leaseback transaction
including any period for which such lease has been extended or may, at the
option of the lessor, be extended.  Such
present value shall be calculated using a discount rate equal to the rate of
interest implicit in such transaction, determined in accordance with GAAP; provided, however, that if such sale and
leaseback transaction results in a Capital Lease Obligation, the amount of
Indebtedness represented thereby will be determined in accordance with the
definition of “Capital Lease Obligation.”

 

 “Bankruptcy
Law” means Title 11, U.S. Code or any similar federal or
state law for the relief of debtors.

 

“Beneficial Owner”
has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the
Exchange Act, except that in calculating the beneficial ownership of any
particular “person” (as that term is used in Section 13(d)(3) of the Exchange
Act), such “person” will be deemed to have beneficial ownership of all
securities that such “person” has the right to acquire by conversion or
exercise of other securities, whether such right is currently exercisable or is
exercisable only after the passage of time. 
The terms “Beneficially Owns” and “Beneficially Owned” have a
corresponding meaning.

 

2

 

“Board of Directors”
means:

 

(1) with respect to a corporation,
the board of directors of the corporation or any committee thereof duly
authorized to act on behalf of such board;

 

(2) with respect to a partnership,
the Board of Directors of the general partner of the partnership;

 

(3) with respect to a limited
liability company, the managing member or members or any controlling committee
of managing members thereof; and

 

(4) with respect to any other Person,
the board or committee of such Person serving a similar function.

 

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

 

(1) 85% of the face
amount of all accounts receivable owned by the Company and its Restricted
Subsidiaries as of the end of the most recent fiscal quarter preceding such
date that were not more than 90 days past due; plus

 

(2) 50% of the book value
of all inventory, net of reserves, owned by the Company and its Restricted
Subsidiaries as of the end of the most recent fiscal quarter preceding such
date,

 

in each case determined
in accordance with GAAP.

 

“BRS” means Bruckmann, Rosser,
Sherrill & Co. Inc.

 

“Business Day” means any day
other than a Legal Holiday.

 

“Capital Lease Obligation” means,
at the time any determination is to be made, the amount of the liability in
respect of a capital lease that would at that time be required to be
capitalized on a balance sheet prepared in accordance with GAAP, and the Stated
Maturity thereof shall be the date of the last payment of rent or any other
amount due under such lease prior to the first date upon which such lease may be
prepaid by the lessee without payment of a penalty.

 

“Capital Stock” means:

 

(1) in the case of a corporation,
corporate stock including, without limitation, corporate stock represented by
EISs and corporate stock outstanding upon the separation of EISs into the
securities represented thereby;

 

(2) in the case of an association or
business entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock;

 

(3) in the case of a partnership or
limited liability company, partnership interests or membership interests
(whether general or limited); and

 

(4) any other interest or
participation that confers on a Person the right to receive a share of the
profits and losses of, or distributions of assets of, the issuing Person, but
excluding from all of the foregoing any debt securities convertible into
Capital Stock, whether or not such debt securities include any right of
participation with Capital Stock.

 

3

 

“Cash Equivalents” means:

 

(1) United States dollars and
Canadian dollars;

 

(2) securities issued or directly and
fully guaranteed or insured by the United States government or any agency or
instrumentality of the United States government (provided
that the full faith and credit of the United States is pledged in support of
those securities) having maturities of not more than one year from the date of
acquisition;

 

(3) certificates of deposit and
eurodollar time deposits with maturities of six months or less from the date of
acquisition, bankers’ acceptances with maturities not exceeding six months and
overnight bank deposits, in each case, with any domestic commercial bank having
capital and surplus in excess of $500.0 million and a Thomson Bank Watch Rating
of “B” or better;

 

(4) repurchase obligations with a
term of not more than seven days for underlying securities of the types
described in clauses (2) and (3) above entered into with any financial
institution meeting the qualifications specified in clause (3) above;

 

(5) commercial paper having one of
the two highest ratings obtainable from Moody’s Investors Service, Inc. or
Standard & Poor’s Rating Services and, in each case, maturing within one
year after the date of acquisition;

 

(6) money market funds at least 95%
of the assets of which constitute Cash Equivalents of the kinds described in
clauses (1) through (5) of this definition; and

 

(7) readily marketable direct obligations issued by
any State of the United States of America or any political subdivision thereof
having maturities of not more than one year from the date of acquisition and
having one of the two highest rating categories obtainable from either Moody’s
Investors Service, Inc. or Standard & Poor’s Rating Services.

 

“Change of Control”
means the occurrence of any of the following:

 

(1) the direct or indirect sale, lease, 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 Company and its Subsidiaries taken as a whole to
any “person” (as that term is used in Section 13(d)(3) of the Exchange Act)
other than a Principal or a Related Party of a Principal;

 

(2) the adoption of a plan relating to the liquidation
or dissolution of the Company;

 

(3) the consummation of any transaction (including,
without limitation, any merger or consolidation), the result of which is that
any “person” (as defined above), other than the Principals and their Related
Parties, becomes the Beneficial Owner, directly or indirectly, of more than 50%
of the Voting Stock of the Company, measured by voting power rather than number
of shares; or

 

(4) the first day on which a majority of the members
of the Board of Directors of the Company are not Continuing Directors.

 

“Clearstream” means Clearstream
Banking, S.A.

 

 “Company”  means B&G Foods, Inc. (f/k/a B&G
Foods Holdings Corp.) and any and all successors thereto.

 

4

 

“Consolidated Cash Flow” means,
with respect to any specified Person for any period, the Consolidated Net
Income of such Person for such period plus,
without duplication:

 

(1) an amount equal to any extraordinary loss plus any
net loss realized by such Person or any of its Restricted Subsidiaries in
connection with an Asset Sale, to the extent such losses were deducted in
computing such Consolidated Net Income; plus

 

(2) provision for taxes based on income or profits of
such Person and its Restricted Subsidiaries for such period, to the extent that
such provision for taxes was deducted in computing such Consolidated Net
Income; plus

 

(3) the Fixed Charges of such Person and its
Restricted Subsidiaries for such period, to the extent that such Fixed Charges
were deducted in computing such Consolidated Net Income; plus

 

(4) depreciation, amortization (including amortization
of goodwill and other intangibles but excluding amortization of prepaid cash
expenses that were paid in a prior period and including, without limitation,
any Mark-to-Market Adjustment) and other non-cash expenses (excluding any such
non-cash expense to the extent that it represents an accrual of or reserve for
cash expenses in any future period or amortization of a prepaid cash expense
that was paid in a prior period) of such Person and its Restricted Subsidiaries
for such period to the extent that such depreciation, amortization and other
non-cash expenses were deducted in computing such Consolidated Net Income; plus

 

(5) if such period includes the quarter ended
September 27, 2003, $2.2 million; plus

 

(6) fees and expenses related to the Transactions not
to exceed $12.0 million in the aggregate actually incurred within three months
of the date hereof; plus

 

(7) charges incurred within
180 days of the date hereof attributable to the write-off of bond discount and
the write-off of deferred financing fees and costs, relating to the pay off of
existing Indebtedness in an amount not to exceed $18.2 million; minus

 

(8) non-cash items increasing such
Consolidated Net Income for such period (including, without limitation, any
Mark-to-Market Adjustment), other than the accrual of revenue in the ordinary
course of business,

 

in each case, on a consolidated basis and determined
in accordance with GAAP.

 

“Consolidated Net Income” means,
with respect to any specified Person for any period, the aggregate of the Net
Income of such Person and its Restricted Subsidiaries for such period, on a
consolidated basis, determined in accordance with GAAP; provided that:

 

(1) the Net Income (but not loss) of any Person that
is not a Restricted Subsidiary or that is accounted for by the equity method of
accounting will be included only to the extent of the amount of dividends or
similar distributions paid in cash to the specified Person or a Restricted
Subsidiary of the Person;

 

(2) the Net Income of any Restricted Subsidiary will
be excluded to the extent that the declaration or payment of dividends or
similar distributions by that Restricted Subsidiary of that Net Income to such
Person and its Restricted Subsidiaries is not at the date of determination

 

5

 

permitted
without any prior governmental approval (that has not been obtained) or,
directly or indirectly, by operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or governmental
regulation applicable to that Restricted Subsidiary or its stockholders; and

 

(3) the cumulative effect of a change in accounting
principles will be excluded.

 

“Continuing Directors” means, as
of any date of determination, any member of the Board of Directors of the
Company who:

 

(1) was a member of such Board of
Directors on the date of this Indenture; or

 

(2) was nominated for election or
elected to such Board of Directors with the approval of a majority of the
Continuing Directors who were members of such Board of Directors at the time of
such nomination or election.

 

“Corporate Trust Office of the Trustee”
will be at the address of the Trustee specified in Section 12.02 hereof or such
other address as to which the Trustee may give notice to the Company.

 

“Credit Agreement” means that
certain Credit Agreement, to be dated as of October 14, 2004 by and among the
Company, the Guarantors, Lehman Commercial Paper, Inc., as administrative
agent, and the lenders from time to time party thereto, providing initially for
up to $30.0 million of revolving credit borrowings, including any related
notes, Guarantees, collateral documents, instruments and agreements executed in
connection therewith, and, in each case, as amended, restated, modified,
renewed, refunded, replaced (whether upon or after termination or otherwise) or
refinanced (including by means of sales of debt securities to institutional
investors) in whole or in part from time to time.

 

“Credit Facilities” means, one or
more debt facilities (including, without limitation, the Credit Agreement) or
commercial paper facilities, in each case with banks or other lenders providing
for revolving credit loans, term loans, receivables financing (including
through the sale of receivables to such lenders or to special purpose entities
formed to borrow from such lenders against such receivables) or letters of
credit, in each case, as amended, restated, modified, renewed, refunded, replaced
(whether upon or after termination or otherwise) or refinanced (including by
means of sales of debt securities to institutional investors) in whole or in
part from time to time (whether upon or after termination or otherwise) or
refinanced (including by means of sales of debt securities to institutional
investors) in whole or in part from time to time.

 

“Custodian” means the Trustee, as
custodian with respect to the Notes in global form, or any successor entity
thereto.

 

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

 

“Definitive Note” means a
certificated Note registered in the name of the Holder thereof and issued in
accordance with Section 2.06 hereof, substantially in the form of Exhibit A
hereto except that such Note shall not bear the Global Note Legend and shall
not have the “Schedule of Exchanges of Interests in the Global Note” attached
thereto.

 

“Depositary” means, with respect
to the Notes issuable or issued in whole or in part in global form, the Person
specified in Section 2.03 hereof as the Depositary with respect to the Notes,
and any and

 

6

 

all successors thereto
appointed as depositary hereunder and having become such pursuant to the
applicable provision of this Indenture.

 

“Disqualified Stock” means any
Capital Stock that, by its terms (or by the terms of any security into which it
is convertible, or for which it is exchangeable, in each case at the option of
the holder of the Capital Stock), or upon the happening of any event, matures
or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise, or redeemable at the option of the holder of the Capital Stock, in
whole or in part, on or prior to the date that is 91 days after the date on
which the Notes mature.  Notwithstanding
the preceding sentence, any Capital Stock that would constitute Disqualified
Stock solely because the holders of the Capital Stock have the right to require
the Company to repurchase such Capital Stock upon the occurrence of a change of
control or an asset sale will not constitute Disqualified Stock if the terms of
such Capital Stock provide that the Company may not repurchase or redeem any
such Capital Stock pursuant to such provisions unless such repurchase or
redemption complies with Section 4.07 hereof. 
The amount of Disqualified Stock deemed to be outstanding at any time
for purposes of this Indenture will be the maximum amount that the Company and
its Restricted Subsidiaries may become obligated to pay upon the maturity of,
or pursuant to any mandatory redemption provisions of, such Disqualified Stock,
exclusive of accrued dividends.

 

“Domestic Subsidiaries” means any
Restricted Subsidiary of the Company that was formed under the laws of the
United States or any state of the United States or the District of Columbia or
that guarantees or otherwise provides direct credit support for any
Indebtedness of the Company.

 

“Enhanced Income
Securities” or “EISs”
means the units of the Company comprised of Senior Subordinated Notes and
common stock.

 

“Equity Interests” means Capital
Stock and all warrants, options or other rights to acquire Capital Stock (but
excluding any debt security that is convertible into, or exchangeable for,
Capital Stock).

 

“Euroclear” means Euroclear Bank,
S.A./N.V., as operator of the Euroclear system.

 

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

 

“Excess Cash” means, with respect
to any specified Person for any period, the Consolidated Cash Flow of that
Person for such period, minus the
sum of the following, each determined for such period on a consolidated basis:

 

(1) cash taxes paid for such person and its Restricted
Subsidiaries; plus

 

(2) cash interest expense paid by such Person and its
Restricted Subsidiaries, whether or not capitalized (including, without
limitation, the interest component of all payments associated with Capital
Lease Obligations, imputed interest with respect to Attributable Debt,
commissions, discounts and other fees and charges incurred in respect of letter
of credit or bankers’ acceptance financings, and net of the effect of all
payments made or received pursuant to Hedging Obligations in respect of
interest rates); plus

 

(3) additions to property, plant and equipment and
other capital expenditures of such Person and its Restricted Subsidiaries that
are (or would be) set forth in a consolidated statement of cash flows of such
Person and its Restricted Subsidiaries for such period prepared in accordance
with GAAP, except to the extent financed by the incurrence of Indebtedness; plus

 

7

 

(4) the aggregate principal amount of long-term
Indebtedness repaid by such Person and its Restricted Subsidiaries and the
repayment by such Person and any Restricted Subsidiary of any short-term
Indebtedness that financed capital expenditures referred to in clause (3)
above, excluding any such repayments (a) under working capital facilities
(except to the extent that such Indebtedness so repaid was incurred to finance
capital expenditures as described in clause (3) above, (b) out of Net Proceeds
of Assets Sales as provided in Section 3.09 hereof and (c) through a
refinancing involving the incurrence of new long-term Indebtedness.

 

“Existing Indebtedness” means
Indebtedness of the Company and its Restricted Subsidiaries (other than
Indebtedness under the Credit Agreement and the Senior Subordinated Notes) in
existence on the date hereof, reduced to the extent such amounts are repaid,
refinanced or retired.

 

“Fair Market Value” means
the value that would be paid by a willing buyer to an unaffiliated willing
seller in a transaction not involving distress or necessity of either party,
determined in good faith by the Board of Directors of the Company (unless
otherwise provided in this Indenture).

 

“First Four Dividend
Payments” means the
dividend payments contemplated to be made by the Company to holders of Class A
common stock on January 30, 2005, April 30, 2005, July 30, 2005
and October 30, 2005 for the partial quarterly dividend payment period
ending January 1, 2005 and the full quarterly dividend payment periods
ending April 2, 2005, July 2, 2005 and October 1, 2005, provided
that the dollar amount of such quarterly dividend payments shall not be greater
than $0.212 per share of Class A common stock.

 

“Fixed Charge Coverage Ratio”
means with respect to any specified Person for any period, the ratio of the
Consolidated Cash Flow of such Person for such period to the Fixed Charges of
such Person for such period.  In the
event that the specified Person or any of its Restricted Subsidiaries incurs,
assumes, guarantees, repays, repurchases, redeems, defeases or otherwise
discharges any Indebtedness (other than ordinary working capital borrowings) or
issues, repurchases or redeems preferred stock subsequent to the commencement
of the period for which the Fixed Charge Coverage Ratio is being calculated and
on or prior to the date on which the event for which the calculation of the
Fixed Charge Coverage Ratio is made (the “Calculation
Date”), then the Fixed Charge Coverage Ratio will be calculated
giving pro forma effect to such incurrence, assumption, Guarantee, repayment,
repurchase, redemption, defeasance or other discharge of Indebtedness, or such
issuance, repurchase or redemption of preferred stock, and the use of the
proceeds therefrom, as if the same had occurred at the beginning of the
applicable four-quarter reference period.

 

In addition, for purposes
of calculating the Fixed Charge Coverage Ratio:

 

(1) acquisitions that have been made by the specified
Person or any of its Restricted Subsidiaries, including through mergers or
consolidations, or any Person or any of its Restricted Subsidiaries acquired by
the specified Person or any of its Restricted Subsidiaries, and including any
related financing transactions and including increases in ownership of
Restricted Subsidiaries, during the four-quarter reference period or subsequent
to such reference period and on or prior to the Calculation Date will be given
pro forma effect as if they had occurred on the first day of the four-quarter
reference period, and Consolidated Cash Flow for such reference period will be
calculated on a pro forma basis in accordance with Regulation S-X under the
Securities Act;

 

(2) the Consolidated Cash Flow attributable to
discontinued operations, as determined in accordance with GAAP, and operations
or businesses (and ownership interests therein) disposed of prior to the
Calculation Date, will be excluded;

 

8

 

(3) the Fixed Charges attributable to discontinued
operations, as determined in accordance with GAAP, and operations or businesses
(and ownership interests therein) disposed of prior to the Calculation Date,
will be excluded, but only to the extent that the obligations giving rise to
such Fixed Charges will not be obligations of the specified Person or any of
its Restricted Subsidiaries following the Calculation Date;

 

(4) any Person that is a Restricted Subsidiary on the
Calculation Date will be deemed to have been a Restricted Subsidiary at all
times during such four-quarter period;

 

(5) any Person that is not a Restricted Subsidiary on
the Calculation Date will be deemed not to have been a Restricted Subsidiary at
any time during such four-quarter period; and

 

(6) if any Indebtedness bears a floating rate of
interest, the interest expense on such Indebtedness will be calculated as if
the rate in effect on the Calculation Date had been the applicable rate for the
entire period (taking into account any Hedging Obligation applicable to such
Indebtedness if such Hedging Obligation has a remaining term as at the
Calculation Date in excess of 12 months).

 

“Fixed Charges”
means, with respect to any specified Person for any period, the sum, without
duplication, of:

 

(1) the consolidated
interest expense of such Person and its Restricted Subsidiaries for such
period, whether paid or accrued, including, without limitation, amortization of
debt issuance costs and original issue discount, non-cash interest payments,
the interest component of any deferred payment obligations, the interest
component of all payments associated with Capital Lease Obligations, imputed
interest with respect to Attributable Debt, commissions, discounts and other
fees and charges incurred in respect of letter of credit or bankers’ acceptance
financings, and net of the effect of all payments made or received pursuant to
Hedging Obligations in respect of interest rates; plus

 

(2) the consolidated
interest expense of such Person and its Restricted Subsidiaries that was
capitalized during such period; plus

 

(3) any interest on
Indebtedness of another Person that is guaranteed by such Person or one of its
Restricted Subsidiaries or secured by a Lien on assets of such Person or one of
its Restricted Subsidiaries, whether or not such Guarantee or Lien is called
upon; plus

 

(4) the product of (a)
all dividends, whether paid or accrued and whether or not in cash, on any
series of preferred stock of such Person or any of its Restricted Subsidiaries,
other than dividends on Equity Interests payable solely in Equity Interests of
the Company (other than Disqualified Stock) or to the Company or a Restricted
Subsidiary of the Company, times
(b) a fraction, the numerator of which is one and the denominator of which is
one minus the then current combined federal, state and local statutory tax rate
of such Person, expressed as a decimal, in each case, determined on a
consolidated basis in accordance with GAAP; minus

 

(5) charges attributable
to the amortization of expenses relating to the Transactions incurred within
180 days of the date of this Indenture; minus

 

(6) charges incurred within 180 days
of the date hereof attributable to the write-off of bond discount and the
write-off of deferred financing fees and costs relating to the pay off of
existing Indebtedness in an amount not to exceed $18.2 million.

 

9

 

“GAAP” means generally accepted
accounting principles set forth in the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as have been
approved by a significant segment of the accounting profession in the United
States, which are in effect on the date of this Indenture.

 

“Global Note Legend” means the
legend set forth in Section 2.06(f)(1) hereof, which is required to be placed
on all Global Notes issued under this Indenture.

 

“Global Notes” means,
individually and collectively, each of the Global Notes deposited with or on
behalf of and registered in the name of the Depository or its nominee,
substantially in the form of Exhibit A hereto and that bears the Global Note
Legend and that has the “Schedule of Exchanges of Interests in the Global Note”
attached thereto, issued in accordance with Section 2.01, 2.06(b) or 2.06(d)
hereof.

 

“Government Securities” means
direct obligations of, or obligations guaranteed by, the United States of
America, and the payment for which the United States pledges its full faith and
credit.

 

“Guarantee” means a guarantee
other than by endorsement of negotiable instruments for collection or standard
contractual indemnities in the ordinary course of business, direct or indirect,
in any manner including, without limitation, by way of a pledge of assets or
through letters of credit or reimbursement agreements in respect thereof, of
all or any part of any Indebtedness (whether arising by virtue of partnership
arrangements, or by agreements to keep-well, to purchase assets, goods,
securities or services, to take or pay or to maintain financial statement
conditions or otherwise).

 

“Guarantors” means each of:

 

(1) BGH Holdings, Inc., Bloch &
Guggenheimer, Inc., Heritage Acquisition Corp., Maple Grove Farms of Vermont,
Inc., Ortega Holdings Inc., Polaner, Inc., Trappey’s Fine Foods, Inc. and
William Underwood Company; and

 

(2) any other Subsidiary of the
Company that executes a Note Guarantee in accordance with the provisions of
this Indenture,

 

and their respective successors and assigns, in each
case, until the Note Guarantee of such Person has been released in accordance
with the provisions of this Indenture.

 

“Hedging Obligations” means, with
respect to any specified Person, the obligations of such Person under:

 

(1) interest rate swap agreements
(whether from fixed to floating or from floating to fixed), interest rate cap
agreements and interest rate collar agreements;

 

(2) other agreements or arrangements
designed to manage interest rates or interest rate risk; and

 

(3) other agreements or arrangements
designed to protect such Person against fluctuations in currency exchange rates
or commodity prices.

 

“Holder” means a Person in whose
name a Note is registered.

 

10

 

 “Immaterial Subsidiary” means, as of any date, any Restricted
Subsidiary whose total assets, as of that date, are less than $100,000 and whose
total revenues for the most recent 12-month period do not exceed $100,000; provided that a Restricted Subsidiary will
not be considered to be an Immaterial Subsidiary if it, directly or indirectly,
guarantees or otherwise provides direct credit support for any Indebtedness of
the Company.

 

“Indebtedness” means, with
respect to any specified Person, any indebtedness of such Person (excluding
accrued expenses and trade payables), whether or not contingent:

 

(1) in respect of
borrowed money;

 

(2) evidenced by bonds,
notes, debentures or similar instruments or letters of credit (or reimbursement
agreements in respect thereof);

 

(3) in respect of banker’s
acceptances;

 

(4) representing Capital
Lease Obligations or Attributable Debt in respect of sale and leaseback
transactions;

 

(5) representing the
balance deferred and unpaid of the purchase price of any property or services,
which purchase price is 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 or any similar
obligation to trade creditors; or

 

(6) representing any
Hedging Obligations,

 

if and to the extent any of the preceding items (other
than letters of credit, Attributable Debt and Hedging Obligations) would appear
as a liability upon a balance sheet of the specified Person prepared in
accordance with GAAP.  In addition, the
term “Indebtedness” includes all Indebtedness of others secured by a Lien on
any asset of the specified Person (whether or not such Indebtedness is assumed
by the specified Person; provided
that if the holder of such Indebtedness has no recourse to such Person other
than to the asset, the amount of such Indebtedness will be deemed to equal the
lesser of the value of such asset and the amount of the obligation so secured)
and, to the extent not otherwise included, the Guarantee by the specified
Person of any Indebtedness of any other Person.

 

“Indenture” means this Indenture,
as amended or supplemented from time to time.

 

“Indirect Participant” means a
Person who holds a beneficial interest in a Global Note through a Participant.

 

“Initial Notes” means the first
$240,000,000 aggregate principal amount of Notes issued under this Indenture on
the date hereof.

 

 “Investments”
means, with respect to any Person, all direct or indirect investments by such
Person in other Persons (including Affiliates) in the forms of loans (including
Guarantees or other obligations), advances or capital contributions (excluding
accounts receivable, trade credit and advances to customers in the ordinary
course of business and commission, travel and similar advances to officers and
employees made in the ordinary course of business), purchases or other
acquisitions for consideration of Indebtedness, Equity Interests or other
securities, together with all items that are or would be classified as
investments on a balance sheet prepared in accordance with GAAP.  If the Company or any Subsidiary of the
Company sells or otherwise disposes of any Equity Interests of any direct or
indirect Subsidiary of

 

11

 

the Company such that,
after giving effect to any such sale or disposition, such Person is no longer a
Subsidiary of the Company, the Company will be deemed to have made an
Investment on the date of any such sale or disposition equal to the Fair Market
Value of the Company’s Investments in such Subsidiary that were not sold or
disposed of in an amount determined as provided in Section 4.07(c) hereof.  The acquisition by the Company or any
Subsidiary of the Company of a Person that holds an Investment in a third
Person will not be deemed to be an Investment by the Company or such Subsidiary
in such third Person if the purpose of such acquisition by the Company or such
Subsidiary was not the Investment in such third Person.  Except as otherwise provided in this
Indenture, the amount of an Investment will be determined at the time the
Investment is made and without giving effect to subsequent changes in value.

 

“Joint Venture”
means any joint venture between the Company and/or any Restricted Subsidiary
and any other Person if such joint venture is:

 

(1) owned 50% or less by the Company and/or any of its
Restricted Subsidiaries; and

 

(2) not directly or
indirectly controlled by or under direct or indirect common control of the
Company and/or any of its Restricted Subsidiaries.

 

“Legal Holiday” means a Saturday,
a Sunday or a day on which banking institutions in the City of New York or at a
place of payment are authorized by law, regulation or executive order to remain
closed.  If a payment date is a Legal
Holiday at a place of payment, payment may be made at that place on the next
succeeding day that is not a Legal Holiday, and no interest shall accrue on
such payment for the intervening period.

 

“Lien” means, with respect to any
asset, any mortgage, lien, pledge, charge, security interest or encumbrance of
any kind in respect of such asset, whether or not filed, recorded or otherwise
perfected under applicable law, including any conditional sale or other title
retention agreement, any lease in the nature thereof, any option or other
agreement to sell or give a security interest in and any filing of or agreement
to give any financing statement relating to a lien on an asset under the
Uniform Commercial Code (or equivalent statutes) of any jurisdiction.

 

“Mark-to-Market Adjustment” means any non-cash expense or income
resulting from current or future mark-to-market accounting that the Company may
apply with respect to any EISs, shares of the Company’s Class A common stock,
shares of the Company’s Class B common stock or the Senior Subordinated Notes
issued in connection with the Transactions or at any time thereafter.

 

“Net Cash Balance” means, with
respect to any specified Person for any fiscal period end, the amount of cash
and cash equivalents set forth on such Person’s balance sheet as of such period
end minus the amount of funded Indebtedness of such Person outstanding under
any secured revolving credit facilities.

 

“Net Income” means, with respect
to any specified Person, the net income (loss) of such Person, determined in
accordance with GAAP and before any reduction in respect of preferred stock
dividends, excluding, however:

 

(1) any gain or loss, together with
any related provision for taxes on such gain or loss, realized in connection
with:

 

(a) 
any Asset Sale; or

 

12

 

(b) 
the disposition of any securities by such Person or any of its Restricted
Subsidiaries or the extinguishment of any Indebtedness of such Person or any of
its Restricted Subsidiaries; and

 

(2)  any extraordinary gain or loss, together with
any related provision for taxes on such extraordinary gain (but not loss).

 

“Net Proceeds” means the
aggregate cash proceeds received by the Company or any of its Restricted
Subsidiaries in respect of any Asset Sale (including, without limitation, any
cash received upon the sale or other disposition of any non-cash consideration
received in any Asset Sale), net of the direct costs relating to such Asset
Sale, including, without limitation, legal, accounting and investment banking
fees, and sales commissions, and any relocation expenses incurred as a result
of the Asset Sale, taxes paid or payable as a result of the Asset Sale, in each
case, after taking into account any available tax credits or deductions and any
tax sharing arrangements, and amounts required to be applied to the repayment
of Indebtedness, other than Indebtedness under a Credit Facility, secured by a
Lien on the asset or assets that were the subject of such Asset Sale and any
reserve for adjustment in respect of the sale price of such asset or assets
established in accordance with GAAP.

 

“Non-Recourse Debt”
means Indebtedness:

 

(1)  as to which
neither the Company nor any of its Restricted Subsidiaries (a) provides credit
support of any kind (including any undertaking, agreement or instrument that
would constitute Indebtedness), (b) is directly or indirectly liable as a
guarantor or otherwise, or (c) constitutes the lender;

 

(2)  no default
with respect to which (including any rights that the holders of the
Indebtedness may have to take enforcement action against an Unrestricted
Subsidiary) would permit upon notice, lapse of time or both any holder of any
other Indebtedness of the Company or any of its Restricted Subsidiaries to
declare a default on such other Indebtedness or cause the payment of the
Indebtedness to be accelerated or payable prior to its Stated Maturity; and

 

(3)  as to which
the lenders have been notified in writing that they will not have any recourse
to the stock or assets of the Company or any of its Restricted Subsidiaries.

 

“Non-U.S. Person” means a Person
who is not a U.S. Person.

 

“Note Guarantee” means the
Guarantee by each Guarantor of the Company’s obligations under this Indenture
and the Notes, executed pursuant to the provisions of this Indenture.

 

“Notes” has the meaning assigned
to it in the preamble to this Indenture. 
The Initial Notes and the Additional Notes shall be treated as a single
class for all purposes under this Indenture, and unless the context otherwise
requires, all references to the Notes shall include the Initial Notes and any
Additional Notes.

 

“Obligations” means any
principal, interest, penalties, fees, indemnifications, reimbursements, damages
and other liabilities payable under the documentation governing any
Indebtedness.

 

“Officer” means, with respect to
any Person, the Chairman of the Board, the Chief Executive Officer, the President,
the Chief Operating Officer, the Chief Financial Officer, the Treasurer, any
Assistant Treasurer, the Controller, the Secretary or any Vice-President of
such Person.

 

13

 

“Officers’ Certificate” means a
certificate signed on behalf of the Company by two Officers of the Company, one
of whom must be the principal executive officer, the principal financial
officer, the treasurer or the principal accounting officer of the Company, that
meets the requirements of Section 12.05 hereof.

 

“Opinion of Counsel” means an
opinion from legal counsel who is reasonably acceptable to the Trustee, that
meets the requirements of Section 12.05 hereof. 
The counsel may be an employee of or counsel to the Company, any Subsidiary
of the Company or the Trustee.

 

“Participant” means, with respect
to the Depositary, Euroclear or Clearstream, a Person who has an account with
the Depositary, Euroclear or Clearstream, respectively (and, with respect to
DTC, shall include Euroclear and Clearstream).

 

“Permitted Business” means the
business of the Company and its Subsidiaries as existing on the date hereof and
any other businesses that are the same, similar or reasonably related,
ancillary or complementary thereto and reasonable extensions thereof.

 

“Permitted
Investments” means:

 

(1) any Investment in the
Company or in a Restricted Subsidiary of the Company;

 

(2) any Investment in
Cash Equivalents;

 

(3) any Investment by the
Company or any Restricted Subsidiary of the Company in a Person, if as a result
of such Investment:

 

(a) such Person becomes a
Restricted Subsidiary of the Company; or

 

(b) such Person is
merged, consolidated or amalgamated with or into, or transfers or conveys
substantially all of its assets to, or is liquidated into, the Company or a
Restricted Subsidiary of the Company;

 

(4) any Investment made
as a result of the receipt of non-cash consideration from an Asset Sale that
was made pursuant to and in compliance with Section 4.10 hereof;

 

(5) any acquisition of
assets or Capital Stock solely in exchange for the issuance of Equity Interests
(other than Disqualified Stock) of the Company;

 

(6) any Investments
received (a) in compromise or resolution of (i) obligations of trade creditors
or customers that were incurred in the ordinary course of business of the
Company or any of its Restricted Subsidiaries, including pursuant to any plan
of reorganization or similar arrangement upon the bankruptcy or insolvency of
any trade creditor or customer or (ii) litigation, arbitration or other
disputes with Persons who are not Affiliates; or (b) in satisfaction of
judgments;

 

(7) Investments
represented by Hedging Obligations;

 

(8) loans or advances to
directors, officers, employees and consultants made in the ordinary course of
business of the Company or the Restricted Subsidiary of the Company in an
aggregate principal amount not to exceed $2.0 million at any one time
outstanding;

 

14

 

(9) repurchases of the
Notes;

 

(10) intercompany loans
to the extent permitted by Section 4.09 hereof;

 

(11) loans by the Company
in an aggregate principal amount not exceeding $3.0 million to employees of the
Company or its Restricted Subsidiaries to finance the sale of the Company’s
Capital Stock by the Company to such employees; provided that the net cash proceeds from such sales
respecting such loaned amounts will not be included in the calculation
described in clause (1)(b) of the first paragraph of Section 4.07(a) hereof;

 

(12) any Investment in
existence on the date hereof;

 

(13) receivables owing to
the Company or any Restricted Subsidiary if created or acquired in the ordinary
course of business and payable or dischargeable in accordance with customary
trade terms;

 

(14) any Investment in
any Person to the extent the Investment consists of prepaid expenses,
negotiable instruments held for collection and lease, utility and workers’
compensation, performance and other similar deposits made in the ordinary
course of business by the Company or any of its Restricted Subsidiaries; and

 

(15) other Investments in
any Person having an aggregate Fair Market Value (measured on the date each
such Investment was made and without giving effect to subsequent changes in
value), when taken together with all other Investments made pursuant to this
clause (15) that are at the time outstanding, not to exceed $10.0 million; provided that if an Investment made
pursuant to this clause (15) is made in any Person that is not a Restricted
Subsidiary of the Company at the date of the making of the Investment and such
Person becomes a Restricted Subsidiary after such date, such Investment will
thereafter be deemed to have been made pursuant to clause (1) above and shall
cease to have been made pursuant to this clause (15).

 

“Permitted Liens” means:

 

(1) Liens on assets of
the Company or any of its Restricted Subsidiaries securing Indebtedness and
other Obligations under Credit Facilities that were permitted by the terms of
this Indenture to be incurred and/or securing certain Hedging Obligations;

 

(2) Liens in favor of the
Company or the Guarantors;

 

(3) Liens on property of
a Person existing at the time such Person is merged with or into or
consolidated with the Company or any Subsidiary of the Company; provided that such Liens were not incurred
in contemplation of such merger or consolidation and do not extend to any
assets other than those of the Person merged into or consolidated with the
Company or the Subsidiary;

 

(4) Liens on property
(including Capital Stock) existing at the time of acquisition of the property
by the Company or any Subsidiary of the Company; provided that such Liens were not incurred in contemplation
of, such acquisition;

 

(5) Liens to secure the
performance of statutory obligations, surety or appeal bonds, performance
bonds, deposits to secure the performance of bids, trade contracts, government
contracts, warranty requirements, leases or licenses or other obligations of a
like nature or

 

15

 

incurred in the ordinary
course of business (including, without limitation, landlord Liens on leased
real property and rights of offset and set-off);

 

(6) Liens to secure
Indebtedness (including Capital Lease Obligations) permitted by  Section 4.09(b)(5) of this Indenture; covering
only the assets acquired with or financed by such Indebtedness;

 

(7) Liens existing on the
date hereof;

 

(8) Liens for taxes,
assessments or governmental charges or claims that are not yet delinquent or
that are being contested in good faith by appropriate proceedings promptly
instituted and diligently concluded; provided
that any reserve or other appropriate provision as is required in conformity
with GAAP has been made therefor;

 

(9) Liens imposed by law,
such as carriers’, warehousemen’s, landlord’s, materialmen’s, repairmen’s and
mechanics’ Liens, in each case, incurred in the ordinary course of business;

 

(10) survey exceptions,
easements or reservations of, or rights of others for, licenses, rights-of-way,
sewers, electric lines, telegraph and telephone lines and other similar
purposes, or zoning or other restrictions as to the use of real property that
were not incurred in connection with Indebtedness and that do not in the
aggregate materially adversely affect the value of said properties or materially
impair their use in the operation of the business of such Person;

 

(11) Liens created for
the benefit of (or to secure) the Notes (or the Note Guarantees);

 

(12) Liens to secure any
Permitted Refinancing Indebtedness permitted to be incurred under this
Indenture; provided, however,
that:

 

(a) the new Lien shall be
limited to all or part of the same property and assets that secured or, under
the written agreements pursuant to which the original Lien arose, could secure
the original Lien (plus improvements and accessions to, such property or
proceeds or distributions thereof); and

 

(b) the Indebtedness
secured by the new Lien is not increased to any amount greater than the sum of
(x) the outstanding principal amount, or, if greater, committed amount, of the
Permitted Refinancing Indebtedness and (y) an amount necessary to pay any fees
and expenses, including premiums, related to such renewal, refunding,
refinancing, replacement, defeasance or discharge;

 

(13) Liens in favor of
customs and revenue authorities to secure payment of customs duties in
connection with the importation of goods in the ordinary course of business and
other similar Liens arising in the ordinary course of business;

 

(14) Liens securing
reimbursement obligations with respect to commercial letters of credit which
encumber documents and other property relating to such letters of credit and
products and proceeds thereof;

 

(15) any interest or
title of a lessor under any Capital Lease Obligation permitted to be incurred
under this Indenture; provided that such
Liens do not extend to any property or assets which is not leased property
subject to such Capital Lease Obligation;

 

16

 

(16) Liens upon specific
items of inventory or other goods and proceeds of any Person securing such
Person’s obligations in respect of bankers’ acceptances issued or created for
the account of such Person to facilitate the purchase, shipment or storage of
such inventory or other goods;

 

(17) leases or subleases
granted to third Persons not interfering with the ordinary course of business
of the Company or any of its Restricted Subsidiaries;

 

(18) Liens (other than
any Lien imposed by ERISA or any rule or regulation promulgated thereunder)
incurred or deposits made in the ordinary course of business in connection with
workers’ compensation, unemployment insurance, and other types of social
security;

 

(19) deposits, in an
aggregate not to exceed $250,000 at any one time outstanding, made in the
ordinary course of business to secure liability to insurance carriers;

 

(20) Liens under
licensing agreements for use of intellectual property entered into in the
ordinary course of business;

 

(21) judgment Liens not
giving rise to an Event of Default;

 

(22) Liens on the assets
of a Restricted Subsidiary of the Company that is not a Guarantor securing
Indebtedness of that Restricted Subsidiary; provided
that such Indebtedness was permitted to be incurred under Section 4.09 hereof;

 

(23) Liens arising out of
conditional sale, title retention, consignment or similar arrangements for the
sale of goods entered into by the Company or any of its Restricted Subsidiaries
in the ordinary course of business; and

 

(24) Liens incurred in
the ordinary course of business of the Company or any Subsidiary of the Company
with respect to obligations that do not exceed $10.0 million at any one time
outstanding.

 

“Permitted Refinancing Indebtedness”
means any Indebtedness of the Company or any of its Restricted Subsidiaries
issued in exchange for, or the net proceeds of which are used to renew, refund,
refinance, replace, defease or discharge other Indebtedness of the Company or
any of its Restricted Subsidiaries (other than intercompany Indebtedness); provided that:

 

(1) the principal amount
(or accreted value, if applicable) of such Permitted Refinancing Indebtedness
does not exceed the principal amount (or accreted value, if applicable) of the
Indebtedness renewed, refunded, refinanced, replaced, defeased or discharged
(plus all accrued interest on the Indebtedness and the amount of all fees and
expenses, including premiums, incurred in connection therewith);

 

(2) such Permitted
Refinancing Indebtedness has a final maturity date later than or the same as
the final maturity date of, and has a Weighted Average Life to Maturity equal
to or greater than the Weighted Average Life to Maturity of, the Indebtedness
being renewed, refunded, refinanced, replaced, defeased or discharged;

 

(3) if the Indebtedness
being renewed, refunded, refinanced, replaced, defeased or discharged is
subordinated in right of payment to the Notes, such Permitted Refinancing
Indebtedness has a final maturity date later than the final maturity date of,
and is subordinated in

 

17

 

right of payment to, the
Notes on terms at least as favorable to the holders of Notes as those contained
in the documentation governing the Indebtedness being renewed, refunded,
refinanced, replaced, defeased or discharged; and

 

(4) such Indebtedness is
incurred either by the Company or by the Restricted Subsidiary who is the
obligor on the Indebtedness being renewed, refunded, refinanced, replaced,
defeased or discharged.

 

“Person” means any individual,
corporation, limited liability company, joint stock company, joint venture,
partnership, limited liability partnership, association, unincorporated
organization, trust, governmental regulatory entity, country, state, agency or
political subdivision thereof, municipality, county, parish or other entity.

 

“Principals” means the members of
management of the Company or any of the Company’s Restricted Subsidiaries as of
the date hereof.

 

“Public Equity Offering” means an
offer and sale of Capital Stock (other than Disqualified Stock or Enhanced
Income Securities) of the Company pursuant to a registration statement that has
been declared effective by the SEC pursuant to the Securities Act (other than a
registration statement on Form S-8 or otherwise relating to equity securities
issuable under any employee benefit plan of the Company).

 

“Related Party” means

 

(1) any controlling
stockholder, 66 2/3% or more owned Subsidiary, or immediate family member (in
the case of an individual) of any Principal; or

 

(2) any trust,
corporation, partnership, limited liability company or other entity, the
beneficiaries, stockholders, partners, members, owners or Persons beneficially
holding a 66 2/3% or more controlling interest of which consist of any one or
more Principals and/or such other Persons referred to in the immediately
preceding clause (1).

 

“Responsible Officer,” when used
with respect to the Trustee, means any officer within the Corporate Trust
Administration of the Trustee (or any successor group of the Trustee) or any
other officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers and also means, with respect
to a particular corporate trust matter, any other officer to whom such matter
is referred because of his knowledge of and familiarity with the particular subject.

 

“Restricted Investment” means an
Investment other than a Permitted Investment.

 

“Restricted
Subsidiary” of a Person means any Subsidiary of the referent Person
that is not an Unrestricted Subsidiary.

 

“SEC” means the Securities and
Exchange Commission.

 

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

 

“Significant Subsidiary” means
any Restricted Subsidiary that would be a “significant subsidiary” as defined
in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities
Act, as such Regulation is in effect on the date of this Indenture.

 

18

 

“Securities Holders Agreement” means the Second Amended and Restated
Securities Agreement dated as of October 14, 2004 among BRS, certain of its
existing stockholders, certain members of its board of directors and its
executive officers, as in effect on the date hereof.

 

“ Senior Subordinated Note Indenture”
means the indenture relating to the Subordinated Notes, dated the date hereof.

 

“Senior Subordinated Notes” means
the Company’s 12.0% Senior Subordinated Notes due 2016.

 

“Significant Subsidiary” means any Restricted Subsidiary that would
be a “significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation
S-X, promulgated pursuant to the Securities Act, as such Regulation is in
effect on the date hereof.

 

“Stated Maturity”
means, with respect to any installment of interest or principal on any series
of Indebtedness, the date on which the payment of interest or principal was
scheduled to be paid in the documentation governing such Indebtedness as of the
date hereof, and will not include any contingent obligations to repay, redeem
or repurchase any such interest or principal prior to the date originally
scheduled for the payment thereof.

 

“Subsidiary” means, with respect
to any specified Person:

 

(1) any corporation, association or
other business entity of which more than 50% of the total voting power of
shares of Capital Stock entitled (without regard to the occurrence of any
contingency and after giving effect to any voting agreement or stockholders’
agreement that effectively transfers voting power) to vote in the election of
directors, managers or trustees of the corporation, association or other
business entity is at the time owned or controlled, directly or indirectly, by
that Person or one or more of the other Subsidiaries of that Person (or a
combination thereof); and

 

(2) any partnership (a) the sole
general partner or the managing general partner of which is such Person or a
Subsidiary of such Person or (b) the only general partners of which are that
Person or one or more Subsidiaries of that Person (or any combination thereof).

 

“TIA” means the Trust Indenture
Act of 1939, as amended (15 U.S.C. §§ 77aaa-77bbbb).

 

“Transaction
Services Agreement” means the amended and restated Transaction
Services Agreement, dated as of September 30, 2004, between BRS and the Company,
as in effect on the date hereof.

 

“Transactions”
has the meaning given in the prospectus related to the Notes dated October 8,
2004.

 

“Trustee” means The Bank of New
York until a successor replaces it in accordance with the applicable provisions
of this Indenture and thereafter means the successor serving hereunder.

 

 “Unrestricted Subsidiary” means any Subsidiary
of the Company that is designated by the Board of Directors of the Company as
an Unrestricted Subsidiary pursuant to a resolution of the Board of Directors,
but only to the extent that such Subsidiary:

 

(1)  has no Indebtedness other than Non-Recourse
Debt;

 

19

 

(2)  except as
permitted by Section 4.11 hereof, is not party to any agreement, contract,
arrangement or understanding with the Company or any Restricted Subsidiary of
the Company unless the terms of any such agreement, contract, arrangement or
understanding are no less favorable to the Company or such Restricted
Subsidiary than those that might be obtained at the time from Persons who are
not Affiliates of the Company;

 

(3)  is a Person
with respect to which neither the Company nor any of its Restricted
Subsidiaries has any direct or indirect obligation (a) to subscribe for
additional Equity Interests or (b) to maintain or preserve such Person’s
financial condition or to cause such Person to achieve any specified levels of
operating results; and

 

(4)  has not
guaranteed or otherwise directly or indirectly provided credit support for any
Indebtedness of the Company or any of its Restricted Subsidiaries.

 

“U.S. Person” means a U.S. Person
as defined in Rule 902(k) promulgated under the Securities Act.

 

“Voting Stock” of any specified
Person as of any date means the Capital Stock of such Person that is at the
time entitled to vote in the election of the Board of Directors of such Person.

 

“Weighted Average Life to Maturity”
means, when applied to any Indebtedness at any date, the number of years
obtained by dividing:

 

(1) the sum of the products obtained
by multiplying (a) the amount of each then remaining installment, sinking fund,
serial maturity or other required payments of principal, including payment at
final maturity, in respect of the Indebtedness, by (b) the number of years
(calculated to the nearest one-twelfth) that will elapse between such date and
the making of such payment; by

 

(2) the then outstanding principal
amount of such Indebtedness.

 

Section 1.02           Other Definitions.

 

	
  Term

  	
   

  	
  Defined
  in

  Section

  
	
   

  	
   

  	
   

  
	
  “Affiliate
  Transaction”

  	
   

  	
  4.11

  
	
  “Asset
  Sale Offer”

  	
   

  	
  3.09

  
	
  “Authentication
  Order”

  	
   

  	
  2.02

  
	
  “Change
  of Control Offer”

  	
   

  	
  4.15

  
	
  “Change
  of Control Payment”

  	
   

  	
  4.15

  
	
  “Change
  of Control Payment Date”

  	
   

  	
  4.15

  
	
  “Covenant
  Defeasance”

  	
   

  	
  8.03

  
	
  “DTC”

  	
   

  	
  2.03

  
	
  “Event
  of Default”

  	
   

  	
  6.01

  
	
  “Excess
  Proceeds”

  	
   

  	
  4.10

  
	
  “Incremental
  Funds”

  	
   

  	
  4.07

  
	
  “incur”

  	
   

  	
  4.09

  
	
  “Legal
  Defeasance”

  	
   

  	
  8.02

  
	
  “Offer
  Amount”

  	
   

  	
  3.09

  
	
  “Offer
  Period”

  	
   

  	
  3.09

  
	
  “Paying
  Agent”

  	
   

  	
  2.03

  

 

20

 

	
  Term

  	
   

  	
  Defined
  in

  Section

  
	
   

  	
   

  	
   

  
	
  “Permitted
  Debt”

  	
   

  	
  4.09

  
	
  “Payment
  Default”

  	
   

  	
  6.01

  
	
  “Purchase
  Date”

  	
   

  	
  3.09

  
	
  “Redemption
  Date”

  	
   

  	
  3.07

  
	
  “Registrar”

  	
   

  	
  2.03

  
	
  “Restricted
  Payments”

  	
   

  	
  4.07

  

 

Section 1.03           Incorporation by
Reference of Trust Indenture Act.

 

Whenever this Indenture refers to a provision of the
TIA, the provision is incorporated by reference in and made a part of this
Indenture.

 

The following TIA terms used in this Indenture have
the following meanings:

 

“indenture securities” means the
Notes;

 

“indenture security Holder” means
a Holder of a Note;

 

“indenture to be qualified” means
this Indenture;

 

“indenture trustee” or “institutional trustee” means the Trustee; and

 

“obligor” on the Notes and the
Note Guarantees means the Company and the Guarantors, respectively, and any
successor obligor upon the Notes and the Note Guarantees, respectively.

 

All other terms used in this Indenture that are
defined by the TIA, defined by TIA reference to another statute or defined by
SEC rule under the TIA have the meanings so assigned to them.

 

Section 1.04           Rules of
Construction.

 

Unless the context otherwise requires:

 

(1) a term has the meaning assigned
to it;

 

(2) an accounting term not otherwise
defined has the meaning assigned to it in accordance with GAAP;

 

(3) “or” is not exclusive;

 

(4) words in the singular include the
plural, and in the plural include the singular;

 

(5) “will” shall be interpreted to
express a command;

 

(6) provisions apply to successive
events and transactions; and

 

(7) references to sections of or
rules under the Securities Act will be deemed to include substitute,
replacement of successor sections or rules adopted by the SEC from time to
time.

 

21

 

ARTICLE 2

THE NOTES

 

Section 2.01           Form and Dating.

 

(a)  General.  The Notes
and the Trustee’s certificate of authentication will be substantially in the
form of Exhibit A hereto.  The Notes may
have notations, legends or endorsements required by law, stock exchange rule or
usage.  Each Note will be dated the date
of its authentication.  The Notes shall
be in denominations of $1,000 and integral multiples thereof.

 

The terms and provisions contained in the Notes will
constitute, and are hereby expressly made, a part of this Indenture and the
Company, the Guarantors and the Trustee, by their execution and delivery of
this Indenture, expressly agree to such terms and provisions and to be bound
thereby.  However, to the extent any provision
of any Note conflicts with the express provisions of this Indenture, the
provisions of this Indenture shall govern and be controlling.

 

(b)  Global Notes.  Notes
issued in global form will be substantially in the form of Exhibit A hereto
(including the Global Note Legend thereon and the “Schedule of Exchanges of
Interests in the Global Note” attached thereto).  Notes issued in definitive form will be
substantially in the form of Exhibit A1 hereto (but without the Global Note
Legend thereon and without the “Schedule of Exchanges of Interests in the
Global Note” attached thereto).  Each
Global Note will represent such of the outstanding Notes as will be specified
therein and each shall provide that it represents the aggregate principal
amount of outstanding Notes from time to time endorsed thereon and that the
aggregate principal amount of outstanding Notes represented thereby may from
time to time be reduced or increased, as appropriate, to reflect exchanges and
redemptions.  Any endorsement of a Global
Note to reflect the amount of any increase or decrease in the aggregate
principal amount of outstanding Notes represented thereby will be made by the
Trustee or the Custodian, at the direction of the Trustee, in accordance with
instructions given by the Holder thereof as required by Section 2.06 hereof.

 

(c)  Euroclear and Clearstream Procedures Applicable.  The provisions of the “Operating Procedures
of the Euroclear System” and “Terms and Conditions Governing Use of Euroclear”
and the “General Terms and Conditions of Clearstream Banking” and “Customer
Handbook” of Clearstream will be applicable to transfers of beneficial
interests in the Global Notes that are held by Participants through Euroclear
or Clearstream.

 

Section 2.02           Execution and
Authentication.

 

At least one Officer must sign the Notes for the
Company by manual or facsimile signature.

 

If an Officer whose signature is on a Note no longer
holds that office at the time a Note is authenticated, the Note will
nevertheless be valid.

 

A Note will not be valid until authenticated by the
manual signature of the Trustee.  The
signature will be conclusive evidence that the Note has been authenticated
under this Indenture.

 

The Trustee will, upon receipt of a written order of
the Company signed by at least one Officer (an “Authentication
Order”), authenticate Notes for original issue that may be validly
issued under this Indenture, including any Additional Notes up to the aggregate
principal amount stated in paragraph 4 of the Notes.  The aggregate principal amount of Notes
outstanding at any time may not exceed the aggregate principal amount of Notes
authorized for issuance by the Company pursuant to one or more Authentication
Orders, except as provided in Section 2.07 hereof.

 

22

 

The Trustee may appoint an authenticating agent
acceptable to the Company to authenticate Notes.  An authenticating agent may authenticate
Notes whenever the Trustee may do so.  Each
reference in this Indenture to authentication by the Trustee includes
authentication by such agent.  An
authenticating agent has the same rights as an Agent to deal with Holders or an
Affiliate of the Company.

 

Section 2.03           Registrar and
Paying Agent.

 

The Company will maintain an office or agency where Notes
may be presented for registration of transfer or for exchange (“Registrar”) and an office or agency where Notes may be
presented for payment (“Paying Agent”).  The Registrar will keep a register of the
Notes and of their transfer and exchange. 
The Company may appoint one or more co-registrars and one or more
additional paying agents.  The term “Registrar”
includes any co-registrar and the term “Paying Agent” includes any additional
paying agent.  The Company may change any
Paying Agent or Registrar without notice to any Holder.  The Company will notify the Trustee in
writing of the name and address of any Agent not a party to this
Indenture.  If the Company fails to
appoint or maintain another entity as Registrar or Paying Agent, the Trustee
shall act as such.  The Company or any of
its Subsidiaries may act as Paying Agent or Registrar.

 

The Company initially appoints The Depository Trust
Company (“DTC”) to act as Depository with respect
to the Global Notes.

 

The Company initially appoints the Trustee to act as
the Registrar and Paying Agent and to act as Custodian with respect to the
Global Notes.

 

Section 2.04           Paying Agent to
Hold Money in Trust.

 

The Company will require each Paying Agent other than
the Trustee to agree in writing that the Paying Agent will hold in trust for
the benefit of Holders or the Trustee all money held by the Paying Agent for
the payment of principal, premium or interest on the Notes, and will notify the
Trustee of any default by the Company in making any such payment.  While any such default continues, the Trustee
may require a Paying Agent to pay all money held by it to the Trustee.  The Company at any time may require a Paying
Agent to pay all money held by it to the Trustee.  Upon payment over to the Trustee, the Paying
Agent (if other than the Company or a Subsidiary) will have no further
liability for the money.  If the Company
or a Subsidiary acts as Paying Agent, it will segregate and hold in a separate
trust fund for the benefit of the Holders all money held by it as Paying
Agent.  Upon any bankruptcy or
reorganization proceedings relating to the Company, the Trustee will serve as
Paying Agent for the Notes.

 

Section 2.05           Holder Lists.

 

The Trustee will preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of all Holders and shall otherwise comply with TIA
§ 312(a).  If the Trustee is not the
Registrar, the Company will furnish to the Trustee at least seven Business Days
before each interest payment date and at such other times as the Trustee may
request in writing, a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of the Holders of Notes and the
Company shall otherwise comply with TIA § 312(a).

 

Section 2.06           Transfer and
Exchange.

 

(a)   Transfer and Exchange of Global
Notes.  A Global Note may not be transferred except
as a whole by the Depositary to a nominee of the Depositary, by a nominee of
the Depositary to the Depositary or to another nominee of the Depositary, or by
the Depositary or any such nominee to a

 

23

 

successor Depositary or a nominee of
such successor Depositary.  All Global
Notes will be exchanged by the Company for Definitive Notes if:

 

(1) the Company delivers to the
Trustee notice from the Depositary that it is unwilling or unable to continue
to act as Depositary or that it is no longer a clearing agency registered under
the Exchange Act and, in either case, a successor Depositary is not appointed
by the Company within 120 days after the date of such notice from the
Depositary;

 

(2) the Company in its sole
discretion determines that the Global Notes (in whole but not in part) should
be exchanged for Definitive Notes and delivers a written notice to such effect
to the Trustee;  or

 

(3) there has occurred and is
continuing a Default or Event of Default with respect to the Notes.

 

Upon the occurrence of either of the preceding events
in (1) or (2) above, Definitive Notes shall be issued in such names as the
Depositary shall instruct the Trustee. 
Global Notes also may be exchanged or replaced, in whole or in part, as
provided in Sections 2.07 and 2.10 hereof. 
Every Note authenticated and delivered in exchange for, or in lieu of, a
Global Note or any portion thereof, pursuant to this Section 2.06 or Section
2.07 or 2.10 hereof, shall be authenticated and delivered in the form of, and
shall be, a Global Note.  A Global Note
may not be exchanged for another Note other than as provided in this Section
2.06(a), however, beneficial interests in a Global Note may be transferred and
exchanged as provided in Section 2.06(b) or (c) hereof.

 

(b)   Transfer and Exchange of
Beneficial Interests in the Global Notes.  The transfer
and exchange of beneficial interests in the Global Notes will be effected
through the Depositary, in accordance with the provisions of this Indenture and
the Applicable Procedures.  Beneficial
interests in any Global Note may be transferred to Persons who take delivery
thereof in the form of a beneficial interest in a Global Note.  No written orders or instructions shall be
required to be delivered to the Registrar to effect the transfers described in
this Section 2.06(b).

 

(c)   Transfer and Exchange of Beneficial Interests for Definitive
Notes.  If any holder of a
beneficial interest in a Global Note proposes to exchange such beneficial
interest for a Definitive Note or to transfer such beneficial interest to a
Person who takes delivery thereof in the form of a Definitive Note, the Trustee
will cause the aggregate principal amount of the applicable Global Note to be
reduced accordingly pursuant to Section 2.06(g) hereof, and the Company will
execute and the Trustee will authenticate and deliver to the Person designated
in the instructions a Definitive Note in the appropriate principal amount.  Any Definitive Note issued in exchange for a
beneficial interest pursuant to this Section 2.06(c) will be registered in such
name or names and in such authorized denomination or denominations as the
holder of such beneficial interest requests through instructions to the
Registrar from or through the Depositary and the Participant or Indirect
Participant.

 

(d)   Transfer and
Exchange of Definitive Notes for Beneficial Interests.  A Holder of a Definitive Note may exchange such Note
for a beneficial interest in a Global Note or transfer such Definitive Notes to
a Person who takes delivery thereof in the form of a beneficial interest in a
Global Note at any time.  Upon receipt of
a request for such an exchange or transfer, the Trustee will cancel the
applicable Definitive Note and increase or cause to be increased the aggregate
principal amount of one of the Global Notes. 
If any such exchange or transfer from a Definitive Note to a beneficial
interest is effected pursuant to this paragraph at a time when a Global Note
has not yet been issued, the Company will issue and, upon receipt of an
Authentication Order in accordance with Section 2.02 hereof, the Trustee will
authenticate

 

24

 

one or
more Global Notes in an aggregate principal amount equal to the principal
amount of Definitive Notes so transferred.

 

(e)   Transfer and Exchange of
Definitive Notes for Definitive Notes.  Upon request
by a Holder of Definitive Notes and such Holder’s compliance with the
provisions of this Section 2.06(e), the Registrar will register the transfer or
exchange of Definitive Notes.  Prior to
such registration of transfer or exchange, the requesting Holder must present
or surrender to the Registrar the Definitive Notes duly endorsed or accompanied
by a written instruction of transfer in form satisfactory to the Registrar duly
executed by such Holder or by its attorney, duly authorized in writing.

 

(f)    Legends. 
Each Global Note will bear a legend in substantially the following form:

 

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS
DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE
BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON
UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS
HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS
GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION
2.06(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE
FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (4) THIS GLOBAL
NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN
CONSENT OF B&G FOODS, INC. (F/K/A B&G FOODS HOLDINGS CORP.).

 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART
FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A
WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE
DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY.  UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER
NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

 

(g)   Cancellation and/or Adjustment of
Global Notes.  At such time as all beneficial interests in a
particular Global Note have been exchanged for Definitive Notes or a particular
Global Note has been redeemed, repurchased or canceled in whole and not in
part, each such Global Note will be returned to or retained and canceled by the
Trustee in accordance with Section 2.11 hereof. 
At any time prior to such cancellation, if any beneficial interest in a
Global Note is exchanged for or transferred to a Person who will take delivery
thereof in the form of a beneficial interest in another Global Note or for
Definitive Notes, the principal amount of Notes represented by such Global Note
will be reduced accordingly and an endorsement will be made on such Global Note
by the Trustee or by the Depositary at the direction of the Trustee to reflect
such reduction; and if the beneficial interest is being exchanged for or
transferred to a Person who will take delivery thereof in the form of a
beneficial interest in another Global Note, such other Global Note will be
increased accordingly and an endorsement will be made on such Global Note by
the Trustee or by the Depositary at the direction of the Trustee to reflect
such increase.

 

25

 

(h)   General Provisions Relating to
Transfers and Exchanges.

 

(1) To permit registrations of
transfers and exchanges, the Company will execute and the Trustee will
authenticate Global Notes and Definitive Notes upon receipt of an
Authentication Order in accordance with Section 2.02 hereof or at the Registrar’s
request.

 

(2) No service charge will be made to
a Holder of a beneficial interest in a Global Note or to a Holder of a
Definitive Note for any registration of transfer or exchange, but the Company
may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than any such
transfer taxes or similar governmental charge payable upon exchange or transfer
pursuant to Sections 2.10, 3.06, 3.09, 4.10, 4.15 and 9.05 hereof).

 

(3) The Registrar will not be
required to register the transfer of or exchange of any Note selected for
redemption in whole or in part, except the unredeemed portion of any Note being
redeemed in part.

 

(4) All Global Notes and Definitive
Notes issued upon any registration of transfer or exchange of Global Notes or
Definitive Notes will be the valid obligations of the Company, evidencing the
same debt, and entitled to the same benefits under this Indenture, as the
Global Notes or Definitive Notes surrendered upon such registration of transfer
or exchange.

 

(5) Neither the Registrar nor the
Company will be required:

 

(A) to issue, to register the
transfer of or to exchange any Notes during a period beginning at the opening
of business 15 days before the day of any selection of Notes for redemption
under Section 3.02 hereof and ending at the close of business on the day of
selection;

 

(B) to register the transfer of or to
exchange any Note selected for redemption in whole or in part, except the
unredeemed portion of any Note being redeemed in part; or

 

(C) to register the transfer of or to
exchange a Note between a record date and the next succeeding interest payment
date.

 

(6) Prior to due presentment for the
registration of a transfer of any Note, the Trustee, any Agent and the Company
may deem and treat the Person in whose name any Note is registered as the
absolute owner of such Note for the purpose of receiving payment of principal
of and interest on such Notes and for all other purposes, and none of the
Trustee, any Agent or the Company shall be affected by notice to the contrary.

 

(7) The Trustee will authenticate
Global Notes and Definitive Notes in accordance with the provisions of Section
2.02 hereof.

 

(8) All certifications, certificates
and Opinions of Counsel required to be submitted to the Registrar pursuant to
this Section 2.06 to effect a registration of transfer or exchange may be
submitted by facsimile.

 

26

 

Section 2.07           Replacement Notes.

 

If any mutilated Note is surrendered to the Trustee or
the Company and the Trustee receives evidence to its satisfaction of the
destruction, loss or theft of any Note, the Company will issue and the Trustee,
upon receipt of an Authentication Order, will authenticate a replacement Note
if the Trustee’s requirements are met. 
If required by the Trustee or the Company, an indemnity bond must be
supplied by the Holder that is sufficient in the judgment of the Trustee and
the Company to protect the Company, the Trustee, any Agent and any
authenticating agent from any loss that any of them may suffer if a Note is
replaced.  The Company may charge for its
expenses in replacing a Note.

 

Every replacement Note is an additional obligation of
the Company and will be entitled to all of the benefits of this Indenture
equally and proportionately with all other Notes duly issued hereunder.

 

Section 2.08           Outstanding Notes.

 

The Notes outstanding at any time are all the Notes
authenticated by the Trustee except for those canceled by it, those delivered
to it for cancellation, those reductions in the interest in a Global Note
effected by the Trustee in accordance with the provisions hereof, and those described
in this Section 2.08 as not outstanding. 
Except as set forth in Section 2.09 hereof, a Note does not cease to be
outstanding because the Company or an Affiliate of the Company holds the Note;
however, Notes held by the Company or a Subsidiary of the Company shall not be
deemed to be outstanding for purposes of Section 3.07(a) hereof.

 

If a Note is replaced pursuant to Section 2.07 hereof,
it ceases to be outstanding unless the Trustee receives proof satisfactory to
it that the replaced Note is held by a protected purchaser.

 

If the principal amount of any Note is considered paid
under Section 4.01 hereof, it ceases to be outstanding and interest on it
ceases to accrue.

 

If the Paying Agent (other than the Company, a
Subsidiary or an Affiliate of any thereof) holds, on a redemption date or
maturity date, money sufficient to pay Notes payable on that date, then on and
after that date such Notes will be deemed to be no longer outstanding and will
cease to accrue interest.

 

Section 2.09           Treasury Notes.

 

In determining whether the Holders of the required
principal amount of Notes have concurred in any direction, waiver or consent,
Notes owned by the Company or any Guarantor, or by any Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with the Company or any Guarantor, will be considered as though not
outstanding, except that for the purposes of determining whether the Trustee
will be protected in relying on any such direction, waiver or consent, only Notes
that a Responsible Officer of the Trustee actually knows are so owned will be
so disregarded.

 

Section 2.10           Temporary Notes.

 

Until certificates representing Notes are ready for
delivery, the Company may prepare and the Trustee, upon receipt of an Authentication
Order, will authenticate temporary Notes. 
Temporary Notes will be substantially in the form of certificated Notes
but may have variations that the Company considers appropriate for temporary
Notes and as may be reasonably acceptable to the Trustee.  Without unreasonable delay, the Company will
prepare and the Trustee will authenticate definitive Notes in exchange for
temporary Notes.

 

27

 

Holders of temporary Notes will be entitled to all of
the benefits of this Indenture.

 

Section 2.11           Cancellation.

 

The Company at any time may deliver Notes to the
Trustee for cancellation.  The Registrar
and Paying Agent will forward to the Trustee any Notes surrendered to them for
registration of transfer, exchange or payment. 
The Trustee and no one else will cancel all Notes surrendered for
registration of transfer, exchange, payment, replacement or cancellation and
will dispose of such canceled Notes (subject to the record retention
requirement of the Exchange Act) in its customary manner.  Certification of the disposition of all
canceled Notes will be delivered to the Company upon its written request
therefor.  The Company may not issue new
Notes to replace Notes that it has paid or that have been delivered to the
Trustee for cancellation.

 

Section 2.12           Defaulted Interest.

 

If the Company defaults in a payment of interest on
the Notes, it will pay the defaulted interest in any lawful manner plus, to the
extent lawful, interest payable on the defaulted interest, to the Persons who
are Holders on a subsequent special record date, in each case at the rate
provided in the Notes and in Section 4.01 hereof.  The Company will notify the Trustee in
writing of the amount of defaulted interest proposed to be paid on each Note
and the date of the proposed payment. 
The Company will fix or cause to be fixed each such special record date
and payment date; provided that no such special
record date may be less than 10 days prior to the related payment date for such
defaulted interest.  At least 15 days
before the special record date, the Company (or, upon the written request of
the Company, the Trustee in the name and at the expense of the Company) will
mail or cause to be mailed to Holders a notice that states the special record date,
the related payment date and the amount of such interest to be paid.

 

Section 2.13           CUSIP Numbers.

 

The Company in issuing the Notes may use “CUSIP”
numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP”
numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed
on the Securities or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on the Notes,
and any such redemption shall not be affected by any defect in or omission of
such numbers.  The Company will promptly
notify the Trustee in writing of any change in the “CUSIP” numbers.

 

ARTICLE 3

REDEMPTION AND PREPAYMENT

 

Section 3.01           Notices to Trustee.

 

If the Company elects to redeem Notes pursuant to the
optional redemption provisions of Section 3.07 hereof, it must furnish to the
Trustee, at least 45 days but not more than 60 days before a redemption date,
an Officers’ Certificate setting forth:

 

(1) the clause of this Indenture
pursuant to which the redemption shall occur;

 

(2) the redemption date;

 

(3) the principal amount of Notes to
be redeemed; and

 

28

 

(4) the redemption price.

 

Section 3.02           Selection of Notes
to Be Redeemed or Purchased.

 

If less than all of the Notes are to be redeemed or
purchased in an offer to purchase at any time, the Trustee will select Notes
for redemption or purchase in principal amounts of $1,000 or integral multiples
thereof (by lot, on a pro rata basis
or another method the Trustee deems appropriate except:

 

(1) if the Notes are listed on any
national securities exchange, in compliance with the requirements of the
principal national securities exchange on which the Notes are listed; or

 

(2) if otherwise required by law.

 

In the event of partial redemption or purchase by lot,
the particular Notes to be redeemed or purchased will be selected, unless
otherwise provided herein, not less than 30 nor more than 60 days prior to the
redemption or purchase date by the Trustee from the outstanding Notes not
previously called for redemption or purchase.

 

The Trustee will promptly notify the Company in
writing of the Notes selected for redemption or purchase and, in the case of
any Note selected for partial redemption or purchase, the principal amount
thereof to be redeemed or purchased. 
Notes and portions of Notes selected will be in amounts of $1,000 or
whole multiples of $1,000; except that if all of the Notes of a Holder are to
be redeemed or purchased, the entire outstanding amount of Notes held by such
Holder, even if not a multiple of $1,000, shall be redeemed or purchased.  Except as provided in the preceding sentence,
provisions of this Indenture that apply to Notes called for redemption or
purchase also apply to portions of Notes called for redemption or purchase.

 

Section 3.03           Notice of
Redemption.

 

Subject to the provisions of Section 3.09 hereof, at
least 30 days but not more than 60 days before a redemption date, the Company
will mail or cause to be mailed, by first class mail, a notice of redemption to
each Holder whose Notes are to be redeemed at its registered address, except
that redemption notices may be mailed more than 60 days prior to a redemption
date if the notice is issued in connection with a defeasance of the Notes or a
satisfaction and discharge of this Indenture pursuant to Articles 8 or 11
hereof.

 

The notice will identify the Notes (including CUSIP
Numbers) to be redeemed and will state:

 

(1) the redemption date;

 

(2) the redemption price;

 

(3) if any Note is being redeemed in
part, the portion of the principal amount of such Note to be redeemed and that,
after the redemption date upon surrender of such Note, a new Note or Notes in
principal amount equal to the unredeemed portion will be issued upon
cancellation of the original Note;

 

(4) the name and address of the
Paying Agent;

 

(5) that Notes called for redemption
must be surrendered to the Paying Agent to collect the redemption price;

 

29

 

(6) that, unless the Company defaults
in making such redemption payment, interest on Notes called for redemption
ceases to accrue on and after the redemption date;

 

(7) the paragraph of the Notes and/or
Section of this Indenture pursuant to which the Notes called for redemption are
being redeemed; and

 

(8) that no representation is made as
to the correctness or accuracy of the CUSIP number, if any, listed in such
notice or printed on the Notes.

 

At the Company’s request, the Trustee will give the
notice of redemption in the Company’s name and at its expense; provided, however, that the Company has delivered to the
Trustee, at least 45 days prior to the redemption date, an Officers’
Certificate requesting that the Trustee give such notice and setting forth the
information to be stated in such notice as provided in the preceding paragraph.

 

Section 3.04           Effect of Notice of
Redemption.

 

Once notice of redemption is mailed in accordance with
Section 3.03 hereof, Notes called for redemption become irrevocably due and
payable on the redemption date at the redemption price.  A notice of redemption may not be
conditional.

 

Section 3.05           Deposit of
Redemption or Purchase Price.

 

One Business Day prior to the redemption or purchase
date, the Company will deposit with the Trustee or with the Paying Agent prior
to 10:00 A.M. Eastern Time money sufficient to pay the redemption or purchase
price of and accrued interest on all Notes to be redeemed or purchased on that
date.  The Trustee or the Paying Agent
will promptly return to the Company any money deposited with the Trustee or the
Paying Agent by the Company in excess of the amounts necessary to pay the
redemption or purchase price of, and accrued interest on, all Notes to be
redeemed or purchased.

 

If the Company complies with the provisions of the
preceding paragraph, on and after the redemption or purchase date, interest
will cease to accrue on the Notes or the portions of Notes called for
redemption or purchase.  If a Note is
redeemed or purchased on or after an interest record date but on or prior to
the related interest payment date, then any accrued and unpaid interest shall
be paid to the Person in whose name such Note was registered at the close of
business on such record date.  If any
Note called for redemption or purchase is not so paid upon surrender for
redemption or purchase because of the failure of the Company to comply with the
preceding paragraph, interest shall be paid on the unpaid principal, from the
redemption or purchase date until such principal is paid, and to the extent
lawful on any interest not paid on such unpaid principal, in each case at the
rate provided in the Notes and in Section 4.01 hereof.

 

Section 3.06           Notes Redeemed or
Purchased in Part.

 

Upon surrender of a Note that is redeemed or purchased
in part, the Company will issue and, upon receipt of an Authentication Order,
the Trustee will authenticate for the Holder at the expense of the Company a
new Note equal in principal amount to the unredeemed or unpurchased portion of
the Note surrendered.

 

Section 3.07           Optional
Redemption.

 

(a)   At any time prior to October 1,
2007, the Company may on any one or more occasions redeem up to 35% of the
aggregate principal amount of Notes issued under this Indenture (including

 

30

 

Additional Notes, if any) at a
redemption price of 108.000% of the principal amount, plus accrued and unpaid
interest, if any, to the redemption date, with the net cash proceeds of one or
more Public Equity Offerings of the Company; provided
that:

 

(1) at least 65% of the aggregate
principal amount of Notes originally issued under this Indenture (excluding
Notes held by the Company and its Subsidiaries) remains outstanding immediately
after the occurrence of such redemption; and

 

(2) the redemption occurs within 90
days of the date of the closing of such Public Equity Offering.

 

(b)   Except pursuant to Sections 3.07(a),
the Notes will not be redeemable at the Company’s option prior to October 1,
2008.

 

(c)   On or after October 1, 2008, the
Company may redeem all or a part of the Notes upon not less than 30 nor more
than 60 days’ notice, at the redemption prices (expressed as percentages of principal
amount) set forth below plus accrued and unpaid interest on the Notes redeemed,
to the applicable redemption date, if redeemed during the twelve-month period
beginning on October 1 of the years indicated below, subject to the rights of
Holders of Notes on the relevant record date to receive interest on the
relevant interest payment date:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  104.000

  	
  %

  
	
  2009

  	
   

  	
  102.000

  	
  %

  
	
  2010 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

Unless the Company defaults in the payment of the
redemption price, interest will cease to accrue on the Notes or portions
thereof called for redemption on the applicable redemption date.

 

(d)   Any redemption pursuant to this
Section 3.07 shall be made pursuant to the provisions of Sections 3.01 through
3.06 hereof.

 

Section 3.08           Mandatory
Redemption.

 

The Company is not required to make mandatory
redemption or sinking fund payments with respect to the Notes.

 

Section 3.09           Offer to Purchase
by Application of Excess Proceeds.

 

In the event that, pursuant to Section 4.10 hereof,
the Company is required to commence an offer to all Holders to purchase Notes
(an “Asset Sale Offer”), it will follow the
procedures specified below.

 

The Asset Sale Offer shall be made to all Holders and
all holders of other Indebtedness that is pari passu with
the Notes containing provisions similar to those set forth in this Indenture
with respect to offers to purchase or redeem with the proceeds of sales of
assets.  The Asset Sale Offer will remain
open for a period of at least 20 Business Days following its commencement and
not more than 30 Business Days, except to the extent that a longer period is
required by applicable law (the “Offer Period”).  No later than three Business Days after the
termination of the Offer Period (the “Purchase Date”),
the Company will apply all Excess Proceeds (the “Offer Amount”) to the purchase of Notes and such other

 

31

 

pari passu Indebtedness (on a pro rata basis, if applicable) or, if less
than the Offer Amount has been tendered, all Notes and other Indebtedness
tendered in response to the Asset Sale Offer. 
Payment for any Notes so purchased will be made in the same manner as
interest payments are made.

 

If the Purchase Date is on or after an interest record
date and on or before the related interest payment date, any accrued and unpaid
interest will be paid to the Person in whose name a Note is registered at the
close of business on such record date, and no additional interest will be
payable to Holders who tender Notes pursuant to the Asset Sale Offer.

 

Upon the commencement of an Asset Sale Offer, the
Company will send, by first class mail, a notice to the Trustee and each of the
Holders, with a copy to the Trustee.  The
notice will contain all instructions and materials necessary to enable such
Holders to tender Notes pursuant to the Asset Sale Offer.  The notice, which will govern the terms of
the Asset Sale Offer, will state:

 

(1) that the Asset Sale Offer is
being made pursuant to this Section 3.09 and Section 4.10 hereof and the length
of time the Asset Sale Offer will remain open;

 

(2) the Offer Amount, the purchase
price and the Purchase Date;

 

(3) that any Note not tendered or
accepted for payment will continue to accrue interest;

 

(4) that, unless the Company defaults
in making such payment, any Note accepted for payment pursuant to the Asset
Sale Offer will cease to accrue interest after the Purchase Date;

 

(5) that Holders electing to have a
Note purchased pursuant to an Asset Sale Offer may elect to have Notes purchased
in integral multiples of $1,000 only;

 

(6) that Holders electing to have
Notes purchased pursuant to any Asset Sale Offer will be required to surrender
the Note, with the form entitled “Option of Holder to Elect Purchase” attached
to the Notes completed, or transfer by book-entry transfer, to the Company, a
Depositary, if appointed by the Company, or a Paying Agent at the address
specified in the notice at least three days before the Purchase Date;

 

(7) that Holders will be entitled to
withdraw their election if the Company, the Depositary or the Paying Agent, as
the case may be, receives, not later than the expiration of the Offer Period, a
telegram, telex, facsimile transmission or letter setting forth the name of the
Holder, the principal amount of the Note the Holder delivered for purchase and
a statement that such Holder is withdrawing his election to have such Note
purchased;

 

(8) that, if the aggregate principal
amount of Notes and other pari passu
Indebtedness surrendered by holders thereof exceeds the Offer Amount, the
Company will select the Notes and other pari passu
Indebtedness to be purchased on a pro rata
basis based on the principal amount of Notes and such other pari passu Indebtedness surrendered (with such adjustments
as may be deemed appropriate by the Company so that only Notes in denominations
of $1,000, or integral multiples thereof, will be purchased); and

 

(9) that Holders whose Notes were
purchased only in part will be issued new Notes equal in principal amount to
the unpurchased portion of the Notes surrendered (or transferred by book-entry
transfer).

 

32

 

On or before the Purchase Date, the Company will, to
the extent lawful, accept for payment, on a pro
rata basis to the extent necessary, the Offer Amount of Notes or
portions thereof tendered pursuant to the Asset Sale Offer, or if less than the
Offer Amount has been tendered, all Notes tendered, and will deliver or cause
to be delivered to the Trustee the Notes properly accepted together with an
Officers’ Certificate stating that such Notes or portions thereof were accepted
for payment by the Company in accordance with the terms of this Section
3.09.  The Company, the Depositary or the
Paying Agent, as the case may be, will promptly (but in any case not later than
five days after the Purchase Date) mail or deliver to each tendering Holder an
amount equal to the purchase price of the Notes tendered by such Holder and
accepted by the Company for purchase, and the Company will promptly issue a new
Note, and the Trustee, upon written request from the Company, will authenticate
and mail or deliver (or cause to be transferred by book entry) such new Note to
such Holder, in a principal amount equal to any unpurchased portion of the Note
surrendered.  Any Note not so accepted
shall be promptly mailed or delivered by the Company to the Holder
thereof.  The Company will publicly
announce the results of the Asset Sale Offer on the Purchase Date.

 

Other than as specifically provided in this Section
3.09, any purchase pursuant to this Section 3.09 shall be made pursuant to the
provisions of Sections 3.01 through 3.06 hereof.

 

ARTICLE 4

COVENANTS

 

Section 4.01           Payment of Notes.

 

The Company will pay or cause to be paid the principal
of, premium, if any, and interest on, the Notes on the dates and in the manner
provided in the Notes.  Principal,
premium, if any, and interest will be considered paid on the date due if the
Paying Agent, if other than the Company or a Subsidiary thereof, holds as of 10:00
a.m. Eastern Time on the due date money deposited by the Company in immediately
available funds and designated for and sufficient to pay all principal,
premium, if any, and interest then due.

 

The Company will pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue principal at
the rate equal to 1% per annum in excess of the then applicable interest rate
on the Notes to the extent lawful; it will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest (without regard to any applicable grace period) at the
same rate to the extent lawful.

 

Section 4.02           Maintenance of
Office or Agency.

 

The Company will maintain in the Borough of Manhattan,
the City of New York, an office or agency (which may be an office of the
Trustee or an affiliate of the Trustee, Registrar or co-registrar) where Notes
may be surrendered for registration of transfer or for exchange and where
notices and demands to or upon the Company in respect of the Notes and this
Indenture may be served.  The Company
will give prompt written notice to the Trustee of the location, and any change
in the location, of such office or agency. 
If at any time the Company fails to maintain any such required office or
agency or fails to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee.

 

The Company may also from time to time designate one
or more other offices or agencies where the Notes may be presented or
surrendered for any or all such purposes and may from time to time rescind such
designations; provided, however, that no such
designation or rescission will in any manner relieve the Company of its
obligation to maintain an office or agency in the Borough of Manhattan, the
City of

 

33

 

New York for such purposes.  The Company will give prompt written notice
to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency.

 

The Company hereby designates the Corporate Trust
Office of the Trustee as one such office or agency of the Company in accordance
with Section 2.03 hereof.

 

Section 4.03           Reports.

 

(a)   Whether or not required by the rules
and regulations of the SEC, so long as any Notes are outstanding, the Company
will furnish to the Holders of Notes or cause the Trustee to furnish to the
Holders of Notes, within the time periods specified in the SEC’s rules and
regulations:

 

(1) all quarterly and annual reports
that would be required to be filed with the SEC on Forms 10-Q and 10-K if the
Company were required to file reports, including a “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” and, with respect to
the annual information only, a report thereon by the Company’s certified
independent registered public accounting firm; and

 

(2) all current reports that would be
required to be filed with the SEC on Form 8-K if the Company were required to
file such reports:

 

provided, however,
that the availability of the foregoing materials on the SEC’s EDGAR service or
on the Company’s website shall be deemed to satisfy the Company’s delivery
obligations under this Section 4.03(a).

 

All such reports will be prepared in all material
respects in accordance with all of the rules and regulations applicable to such
reports.  Each annual report on Form 10-K
will include a report on the Company’s consolidated financial statements by the
Company’s independent registered public accounting firm. In addition, the
Company will file a copy of each of the reports referred to in clauses (1)
and (2) above with the SEC for public availability within the time periods
specified in the rules and regulations applicable to such reports (unless the
SEC will not accept such a filing) and will make such information available to
securities analysts and prospective investors upon request.  The Company will at all times comply with TIA
§ 314(a).

 

If, at any time, the Company is no longer subject to
the periodic reporting requirements of the Exchange Act for any reason, the
Company will nevertheless continue filing the reports specified in the
preceding paragraph with the SEC within the time periods specified above unless
the SEC will not accept such a filing. 
The Company will not take any action for the purpose of causing the SEC
not to accept any such filings.  If,
notwithstanding the foregoing, the SEC will not accept the Company’s filings
for any reason, the Company will post the reports referred to in the preceding
paragraph on its website within the time periods that would apply if the
Company were required to file those reports with the SEC.

 

(b)   If the Company has designated any of
its Subsidiaries as Unrestricted Subsidiaries, then the quarterly and annual
financial information required by paragraph (a) of this Section 4.03 will
include a reasonably detailed presentation, either on the face of the financial
statements or in the footnotes thereto, and in Management’s Discussion and
Analysis of Financial Condition and Results of Operations, of the financial
condition and results of operations of the Company and its Restricted
Subsidiaries separate from the financial condition and results of operations of
the Unrestricted Subsidiaries of the Company.

 

(c)   For so long as any Notes remain
outstanding, if at any time they are not required to file with the SEC the
reports required by paragraphs (a) and (b) of this Section 4.03, the Company
and the

 

34

 

Guarantors will furnish to the
Holders and to securities analysts and prospective investors, upon their
request, the information required to be delivered pursuant to Rule 144A(d)(4)
under the Securities Act.

 

Delivery of such reports,
information and documents to the Trustee is for informational purposes only and
the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on an Officer’s
Certificate).

 

Section 4.04           Compliance
Certificate.

 

(a)   The Company and each Guarantor (to
the extent that such Guarantor is so required under the TIA) shall deliver to
the Trustee, within 90 days after the end of each fiscal year, an Officers’
Certificate stating that a review of the activities of the Company and its
Subsidiaries during the preceding fiscal year has been made under the
supervision of the signing Officers with a view to determining whether the
Company has kept, observed, performed and fulfilled its obligations under this
Indenture, and further stating, as to each such Officer signing such
certificate, that to the best of his or her knowledge the Company has kept,
observed, performed and fulfilled each and every covenant contained in this
Indenture and is not in default in the performance or observance of any of the
terms, provisions and conditions of this Indenture (or, if a Default or Event
of Default has occurred, describing all such Defaults or Events of Default of
which he or she may have knowledge and what action the Company is taking or
proposes to take with respect thereto) and that to the best of his or her
knowledge no event has occurred and remains in existence by reason of which
payments on account of the principal of or interest, if any, on the Notes is
prohibited or if such event has occurred, a description of the event and what
action the Company is taking or proposes to take with respect thereto.

 

(b)   So long as not contrary to the then
current recommendations of the American Institute of Certified Public
Accountants, the year-end financial statements delivered pursuant to Section
4.03 above shall be accompanied by a written statement of the Company’s
independent public accountants (who shall be a firm of established national
reputation) that in making the examination necessary for certification of such
financial statements, nothing has come to their attention that would lead them
to believe that the Company has violated any provisions of Article 4 or Article
5 hereof or, if any such violation has occurred, specifying the nature and
period of existence thereof, it being understood that such accountants shall
not be liable directly or indirectly to any Person for any failure to obtain
knowledge of any such violation.

 

(c)   So long as any of the Notes are
outstanding, the Company will deliver to the Trustee, forthwith (and in any
event within 10 days) upon any Officer becoming aware of any Default or Event
of Default, an Officers’ Certificate specifying such Default or Event of
Default and what action the Company is taking or proposes to take with respect
thereto.

 

Section 4.05           Taxes.

 

The Company will pay, and will cause each of its
Subsidiaries to pay, prior to delinquency, all material taxes, assessments, and
governmental levies except such as are contested in good faith and by
appropriate proceedings or where the failure to effect such payment is not
adverse in any material respect to the Holders of the Notes.

 

35

 

Section 4.06           Stay, Extension and
Usury Laws.

 

The Company and each of the Guarantors covenants (to
the extent that it may lawfully do so) that it will not at any time insist
upon, plead, or in any manner whatsoever claim or take the benefit or advantage
of, any stay, extension or usury law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this
Indenture; and the Company and each of the Guarantors (to the extent that it
may lawfully do so) hereby expressly waives all benefit or advantage of any
such law, and covenants that it will not, by resort to any such law, hinder,
delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law
has been enacted.

 

Section 4.07           Restricted
Payments.

 

(a)   The Company will not, and will not
permit any of its Restricted Subsidiaries to, directly or indirectly:

 

(1) declare or pay any dividend or
make any other payment or distribution on account of the Company’s or any of
its Restricted Subsidiaries’ Equity Interests (including, without limitation,
any payment in connection with any merger or consolidation involving the
Company or any of its Restricted Subsidiaries) or to the direct or indirect
holders of the Company’s or any of its Restricted Subsidiaries’ Equity
Interests in their capacity as such (other than dividends or distributions
payable in Equity Interests (other than Disqualified Stock) of the Company and
other than dividends or distributions payable to the Company or a Restricted
Subsidiary of the Company);

 

(2) purchase, redeem or otherwise
acquire or retire for value (including without limitation, in connection with
any merger or consolidation involving the Company) any Equity Interests (other
than any such Equity Interest owned by a wholly owned Restricted Subsidiary of the
Company) of the Company or any direct or indirect parent of the Company;

 

(3) make any payment on or with
respect to, or purchase, redeem, defease or otherwise acquire or retire for
value any Indebtedness of the Company or any Guarantor that is contractually
subordinated to the Notes or to any Note Guarantee (excluding any intercompany
Indebtedness between or among the Company and any of its Restricted
Subsidiaries), except a payment of interest or principal at the Stated Maturity
thereof; or

 

(4) make any Restricted Investment
(all such payments and other actions set forth in these clauses (1) through (4)
being collectively referred to as “Restricted Payments”),

 

unless, at the time of and after giving effect to such
Restricted Payment, no Default or Event of Default has occurred and is
continuing or would occur as a consequence of such Restricted Payment and:

 

(1) if the Fixed Charge Coverage
Ratio for the Company’s four most recent fiscal quarters for which internal
financial statements are available is not less than 1.6 to 1, such Restricted
Payment, together with the aggregate amount of all other Restricted Payments
made by the Company and its Restricted Subsidiaries since the date hereof
(except for Restricted Payments made pursuant to Section 4.07(b)(1) (so long as
such Restricted Payment was previously included for purposes of this
calculation (to the extent required to be so included) at the time of its
declaration), 4.07(b)(2), 4.07(b)(3), 4.07(b)(6), 4.07(b)(11), 4.07(b)(13),
4.07(b)(14) and 4.07(b)(15) below, is less than the sum, without duplication
of:

 

36

 

(a)   Excess Cash of the Company for the period (taken as
one accounting period) from and including the first fiscal quarter beginning
after the date hereof to the end of the Company’s most recently ended fiscal
quarter for which internal financial statements are available at the time of
such Restricted Payment; plus

 

(b)   100% of the aggregate net cash proceeds received by the
Company since the date of this Indenture as a contribution to its common equity
capital or from the issue or sale of Equity Interests of the Company (other
than Disqualified Stock) or from the issue or sale of convertible or
exchangeable Disqualified Stock or convertible or exchangeable debt securities
of the Company that have been converted into or exchanged for such Equity
Interests (other than Equity Interests (or Disqualified Stock or debt
securities) sold to a Subsidiary of the Company); plus

 

(c)   100% of the Fair Market Value as of the date of
issuance of any Equity Interests (other than Disqualified Stock) issued since
the date of this indenture by the Company as consideration for the purchase by the
Company or any of its Restricted Subsidiaries of all or substantially all of
the assets of, or a majority of the Voting Stock of, another Permitted Business
(including by means of a merger, consolidation or other business combination
permitted under this Indenture); plus

 

(d)   to the extent that any Restricted Investment that was
made after the date of this Indenture is sold for cash or other property or
otherwise liquidated or repaid for cash, the lesser of (i) the cash return of
capital with respect to such Restricted Investment or the Fair Market Value of
such other property (less the cost of disposition, if any) and (ii) the initial
amount of such Restricted Investment; plus

 

(e)   to the extent that any Unrestricted Subsidiary of the
Company designated as such after the date of this Indenture is redesignated as
a Restricted Subsidiary after the date of this Indenture or merges or
consolidates with or into, or is liquidated into, the Company or any of its
Restricted Subsidiaries, the lesser of (i) the Fair Market Value of the Company’s
Investment in such Subsidiary as of the date of such redesignation or (ii) such
Fair Market Value as of the date on which such Subsidiary was originally
designated as an Unrestricted Subsidiary after the date of this Indenture (the
amount determined at any time pursuant to items (b), (c), (d) and (e) being
referred to as the “Incremental Funds”);
minus

 

(f)    the aggregate amount of Restricted Payments made in
reliance on Incremental Funds pursuant to this clause (1) or clause (2) below;
or

 

(2) if the Fixed Charge Coverage
Ratio for the Company’s four most recent fiscal quarters for which internal
financial statements are available is less than 1.6 to 1, such Restricted
Payment, together with the aggregate amount of all other Restricted Payments
made by the Company and its Restricted Subsidiaries since the beginning of the
fiscal quarter in which such Restricted Payment is made (such Restricted
Payments for purposes of this clause (2) meaning only distributions on the
Company’s common stock), is less than the sum, without duplication, of:

 

(a)   $10.0 million less the aggregate amount of all
Restricted Payments made by the Company pursuant to this clause (2)(a) during
the period ending on the last day of the fiscal quarter of the Company
immediately preceding the fiscal quarter in which such Restricted Payment is
made and beginning on the date of this Indenture, plus

 

37

 

(b)   Incremental Funds to the extent not previously
expended pursuant to this clause (2) or clause (1) above;

 

provided that only Restricted Payments that are
distributions on the Company’s common stock may be made pursuant to this clause
(2).

 

(b)  The
preceding provisions will not prohibit:

 

(1) the payment of any dividend or
the consummation of any irrevocable redemption within 60 days after the date of
declaration of the dividend or giving of the redemption notice, as the case may
be, if at the date of declaration or notice, the dividend or redemption payment
would have complied with the provisions of this Indenture;

 

(2) so long as no Default has
occurred and is continuing or would be caused thereby, the making of any
Restricted Payment in exchange for, or out of the net cash proceeds of the sale
within 10 Business Days (other than to a Subsidiary of the Company) of, Equity
Interests of the Company (other than Disqualified Stock) or from the
contribution of common equity capital to the Company within 10 Business Days; provided that the amount of any such net
cash proceeds that are utilized for any such Restricted Payment will be
excluded from clause (1)(b) of Section 4.07(a);

 

(3) so long as no Default has
occurred and is continuing or would be caused thereby, the repurchase,
redemption, defeasance or other acquisition or retirement for value of
Indebtedness of the Company or any Guarantor that is contractually subordinated
to the Notes or to any Note Guarantee with the net cash proceeds from an
incurrence of Permitted Refinancing Indebtedness or issuance of Disqualified
Stock permitted to be issued by Section 4.09 hereof within 10 Business Days
from such incurrence or issuance;

 

(4) the payment of any dividend (or,
in the case of any partnership or limited liability company, any similar
distribution) by a Restricted Subsidiary of the Company to the holders of its
Equity Interests on a pro rata basis;

 

(5) so
long as no Default has occurred and is continuing or would be caused thereby,
the repurchase, redemption or other acquisition or retirement for value of any
Equity Interests of the Company or any Restricted Subsidiary of the Company
held by any current or former officer, director or employee of the Company or
any of its Restricted Subsidiaries pursuant to any equity subscription
agreement, stock option plan or any other management or employee benefit plan
or agreement, shareholders’ agreement or similar agreement; provided that the aggregate price paid for
all such repurchased, redeemed, acquired or retired Equity Interests may not
exceed $2.0 million in any calendar year; provided,
further, that such amount in any calendar year may be increased by
an amount not to exceed the cash proceeds received by the Company or any of its
Restricted Subsidiaries (to the extent contributed to the Company) from sales
of Equity Interests (other than Disqualified Stock) of the Company to officers,
directors or employees of the Company or any of its Restricted Subsidiaries
that occur after the date of this Indenture (provided
that the amount of such cash proceeds used for any such repurchase, redemption,
acquisition or retirement will not increase the amount available for Restricted
Payments under clause (1)(b) of Section 4.07(a) hereof and provided that the Company may elect to
apply all or any portion of the aggregate increase contemplated by this proviso
in any calendar year); provided, further,
that cancellation of Indebtedness owing to the Company from members of
management of the Company or any Restricted Subsidiary in connection with a
repurchase of Equity Interests of the Company will not be deemed to constitute
a Restricted Payment;

 

38

 

(6) so long as no Default has
occurred and is continuing or would be caused thereby, the repurchase of Equity
Interests deemed to occur upon the exercise of stock options to the extent such
Equity Interests represent a portion of the exercise price of those stock
options;

 

(7) so long as no Default has
occurred and is continuing or would be caused thereby, the declaration and
payment of regularly scheduled or accrued dividends to holders of any class or
series of Disqualified Stock of the Company or any Restricted Subsidiary of the
Company issued on or after the date of this Indenture in accordance with
Section 4.09 hereof;

 

(8) so long as no Default has
occurred and is continuing or would be caused thereby, upon the occurrence of a
Change of Control and within 60 days after the completion of the related Change
of Control Offer, any purchase or redemption of Indebtedness of the Company or
any Guarantor that is contractually subordinated to the Notes or to any Note
Guarantee required pursuant to the terms thereof as a result of such Change of
Control at a purchase or redemption price not to exceed 101% of the outstanding
principal amount thereof, plus accrued and unpaid interest thereon, if any; provided, however,
that such purchase or redemption is not made, directly or indirectly, from the
proceeds of (or made in anticipation of) any issuance of Indebtedness by the
Company or any of its Restricted Subsidiaries;

 

(9) repurchases of Capital Stock
deemed to occur upon the exercise of stock options if the Capital Stock
represents a portion of the exercise price thereof;

 

(10) payments of dividends to the
Company solely to enable it to make payments to holders of its Capital Stock in
lieu of the issuance of fractional shares of its Capital Stock;

 

(11) so long as no Default has
occurred and is continuing or would be caused thereby, the acquisition of any
shares of Disqualified Stock of the Company in exchange for other shares of
Disqualified Stock of the Company or with the net cash proceeds from an
issuance of Disqualified Stock by the Company within 10 Business Days of such
issuance, in each case that is permitted to be issued under Section 4.09
hereof;

 

(12) so long as no Default has
occurred and is continuing or would be caused thereby, the First Four Dividend
Payments;

 

(13) the repurchase of the Company’s
Class B common stock on the date hereof or on the closing date(s) of the
exercise of the over-allotment option relating to the EISs (which closing
date(s) shall occur on or before November 8, 2004);

 

(14) so long as no Default has
occurred and is continuing or would be caused thereby, other Restricted
Payments in an aggregate amount not to exceed $10.0 million since the date of
this Indenture; and

 

(15) so
long as no Default has occurred and is continuing to or would be caused
thereby, the repurchase of shares of our Class B common stock issued on or
before the date hereof with the proceeds of an issuance of EISs or, if no EISs
are outstanding on the sale of repurchase, the issuance of Senior Subordinated
Notes and the Company’s Class A common stock, in either case completed
substantially contemporaneously with the repurchase and, in respect of any
Senior Subordinated Notes, incurred pursuant to Section 4.09(b)(19) hereof, provided that such transactions may only be consummated in
accordance with the Securities Holders Agreement, provided,
further, that the amount of any such net cash proceeds that are
utilized for any such Restricted Payment will be excluded from Section
4.07(1)(b) hereof.

 

39

 

(16) the repurchase, redemption,
defeasance or other acquisition or retirement for value of the Company’s 9 5/8%
senior subordinated notes due 2007.

 

(c)   If the Company’s Net Cash Balance is
less than $10.0 million at the end of any fiscal year beginning with the fiscal
year ended January 1, 2005, then until the earlier of (a) the first fiscal year
end thereafter at which the Company’s Net Cash Balance equals or exceeds $10.0
million and (b) the first fiscal quarter end thereafter at which the Company’s
Net Cash Balance equals or exceeds $12.5 million, the amount of Excess Cash
that the Company may use to make dividends or other distributions on its common
stock pursuant to the second clause (1) of the first paragraph of this covenant
shall be reduced to 98.0% thereof.

 

(d)   For purposes of this covenant, the
amount of all Restricted Payments (other than cash) will be the Fair Market
Value on the date of the Restricted Payment of the asset(s) or securities
proposed to be transferred or issued by the Company or such Restricted
Subsidiary, as the case may be, pursuant to the Restricted Payment.  The Fair Market Value of any assets or
securities that are required to be valued by Section 4.07 will be determined by
the Board of Directors of the Company whose resolution with respect thereto
will be delivered to the Trustee to the extent that such Fair Market Value
exceeds $10.0 million.  For purposes of
determining compliance with Section 4.07, in the event that a Restricted
Payment meets the criteria of more than one of the exceptions described in
Section 4.07(b) or is entitled to be made pursuant to Section 4.07(a) hereof,
the Company will be permitted, in its sole discretion, to classify the
Restricted Payment in any manner that complies with Section 4.07.

 

Section 4.08           Dividend and Other
Payment Restrictions Affecting Subsidiaries.

 

(a)   The Company will not, and will not
permit any of its Restricted Subsidiaries to, directly or indirectly, create or
permit to exist or become effective any consensual encumbrance or restriction
on the ability of any Restricted Subsidiary to:

 

(1) pay dividends or make any other
distributions on its Capital Stock to the Company or any of its Restricted
Subsidiaries or with respect to any other interest or participation in, or
measured by, its profits, or pay any indebtedness owed to the Company or any of
its Restricted Subsidiaries;

 

(2) make loans or advances to the
Company or any of its Restricted Subsidiaries; or

 

(3) transfer any of its properties or
assets to the Company or any of its Restricted Subsidiaries.

 

(b)   However, the preceding restrictions
in Section 4.08(a) hereof will not apply to encumbrances or restrictions
existing under or by reason of:

 

(1) agreements governing Existing
Indebtedness and any other agreement, including Credit Facilities and the
Subordinated Note Indenture as in effect on the date of this Indenture and any
amendments, restatements, modifications, renewals, increases, supplements,
refundings, replacements or refinancings of those agreements; provided that the amendments, restatements, modifications,
renewals, supplements, refundings, replacements or refinancings are not
materially more restrictive, taken as a whole, with respect to such dividend and
other payment restrictions than those contained in those agreements on the date
of this Indenture;

 

(2) this Indenture, the Notes and the
Note Guarantees;

 

40

 

(3) applicable law, rule, regulation
or order;

 

(4) any instrument governing
Indebtedness or Capital Stock of a Person acquired by the Company or any of its
Restricted Subsidiaries as in effect at the time of such acquisition (except to
the extent such Indebtedness or Capital Stock was incurred in connection with
or in contemplation of such acquisition), which encumbrance or restriction is
not applicable to any Person, or the properties or assets of any Person, other
than the Person, or the property or assets of the Person, so acquired; provided that, in the case of Indebtedness, such
Indebtedness was permitted by the terms of this Indenture to be incurred;

 

(5) customary non-assignment
provisions in contracts, licenses and other commercial agreements entered into
in the ordinary course of business;

 

(6) purchase money obligations for
property acquired in the ordinary course of business and Capital Lease
Obligations that impose restrictions on the property purchased or leased of the
nature described in clause (3) of Section 4.08(a) hereof;

 

(7) any agreement for the sale or
other disposition of all or substantially all of the Capitol Stock of assets of
a Restricted Subsidiary that restricts distributions by that Restricted
Subsidiary pending the sale or other disposition;

 

(8) Permitted Refinancing Indebtedness;
provided that the encumbrances or
restrictions contained in the agreements governing such Permitted Refinancing
Indebtedness are, in the good faith judgment of the senior management or Board
of Directors of the Company, not materially more restrictive, taken as a whole,
than those contained in the agreements governing the Indebtedness being
refinanced;

 

(9) Any restriction on the transfer
of assets under any Lien permitted under this Indenture imposed by the holder
of the Lien;

 

(10) provisions limiting the
disposition or distribution of assets or property in joint venture agreements,
asset sale agreements, sale-leaseback agreements, stock sale agreements and
other similar agreements entered into in the ordinary course of business or
with the approval of the Company’s Board of Directors, which limitation is
applicable only to the assets that are the subject of such agreements; and

 

(11) restrictions on cash or other
deposits or net worth imposed by customers under contracts entered into in the
ordinary course of business.

 

Section 4.09           Incurrence of
Indebtedness and Issuance of Preferred Stock.

 

(a)   The Company will not, and will not
permit any of its Restricted Subsidiaries to, directly or indirectly, create,
incur, issue, assume, guarantee or otherwise become directly or indirectly
liable, contingently or otherwise, with respect to (collectively, “incur”) any Indebtedness (including Acquired Debt), and the
Company will not issue any Disqualified Stock and will not permit any of its
Restricted Subsidiaries to issue any shares of preferred stock; provided, however, that
the Company may incur Indebtedness (including Acquired Debt) or issue
Disqualified Stock, and the Guarantors may incur Indebtedness (including
Acquired Debt) or issue preferred stock, if the Fixed Charge Coverage Ratio for
the Company’s most recently ended four full fiscal quarters for which internal
financial statements are available immediately preceding the date on which such
additional Indebtedness is incurred or such Disqualified Stock or such
preferred stock is issued, as the case may be, would have been at least 2.0 to
1,

 

41

 

determined
on a pro forma basis (including a pro forma application of the net proceeds
therefrom), as if the additional Indebtedness had been incurred or the
Disqualified Stock or the preferred stock had been issued, as the case may be,
at the beginning of such four-quarter period.

 

(b)   The provisions of Section 4.09(a)
hereof will not prohibit the incurrence of any of the following items of
Indebtedness (collectively, “Permitted Debt”):

 

(1) the incurrence by the Company and
any of its Restricted Subsidiaries of additional Indebtedness and letters of
credit under Credit Facilities in an aggregate principal amount at any one time
outstanding under this clause (1) (with letters of credit being deemed to have
a principal amount equal to the maximum potential liability of the Company and
its Restricted Subsidiaries thereunder) not to exceed the greater of (x) $50.0
million and (y) the amount of the Borrowing Base as of the date of such
incurrence;

 

(2) the incurrence by the Company and
its Restricted Subsidiaries of the Existing Indebtedness;

 

(3) the incurrence of up to $166.0
million of Subordinated Notes and the related guarantees thereof by the Company
and the Guarantors;

 

(4) the incurrence by the Company and
the Guarantors of Indebtedness represented by the Notes and the related Note
Guarantees to be issued on the date of this Indenture;

 

(5) the incurrence by the Company or
any of its Restricted Subsidiaries of Indebtedness represented by Capital Lease
Obligations, mortgage financings or purchase money obligations, in each case
incurred for the purpose of financing all or any part of the purchase price or
cost of design, construction, installation or improvement of property, plant or
equipment used in the business of the Company or any of its Restricted
Subsidiaries (whether through the direct purchase of assets or the Equity
Interests of any Person owning such assets), in an aggregate principal amount,
including all Permitted Refinancing Indebtedness incurred to renew, refund,
refinance, replace, defease or discharge any Indebtedness incurred pursuant to
this clause (5), not to exceed $20.0 million at any time outstanding;

 

(6) the incurrence by the Company or
any of its Restricted Subsidiaries of Permitted Refinancing Indebtedness in
exchange for, or the net proceeds of which are used to renew, refund,
refinance, replace, defease or discharge any Indebtedness (other than
intercompany Indebtedness) that was permitted by this Indenture to be incurred
by Section 4.09(a) or clauses (2), (3), (4), (5), (6), (17) or (18) of this
Section 4.09(b);

 

(7) the incurrence by the Company or
any of its Restricted Subsidiaries of intercompany Indebtedness between or
among the Company and any of its Restricted Subsidiaries; provided, however, that:

 

(a)   if the Company or any Guarantor is the obligor on such
Indebtedness and the payee is not the Company or a Guarantor, such Indebtedness
must be expressly subordinated to the prior payment in full in cash of all
Obligations then due with respect to the Notes, in the case of the Company, or
the Note Guarantee, in the case of a Guarantor; and

 

(b)   (i) any subsequent issuance or transfer of Equity
Interests that results in any such Indebtedness being held by a Person other
than the Company or a Restricted

 

42

 

Subsidiary of the Company and (ii)
any sale or other transfer of any such Indebtedness to a Person that is not
either the Company or a Restricted Subsidiary of the Company, will be deemed,
in each case, to constitute an incurrence of such Indebtedness by the Company
or such Restricted Subsidiary, as the case may be, that was not permitted by
this clause (7);

 

(8) the issuance by any of the
Company’s Restricted Subsidiaries to the Company or to any of its Restricted
Subsidiaries of shares of preferred stock; provided,
however, that:

 

(a)   any subsequent issuance or transfer of Equity
Interests that results in any such preferred stock being held by a Person other
than the Company or a Restricted Subsidiary of the Company; and

 

(b)   any sale or other transfer of any such preferred stock
to a Person that is not either the Company or a Restricted Subsidiary of the
Company,

 

will be deemed, in
each case, to constitute an issuance of such preferred stock by such Restricted
Subsidiary that was not permitted by this clause (8);

 

(9) the incurrence by the Company or
any of its Restricted Subsidiaries of Hedging Obligations in the ordinary
course of business;

 

(10) the guarantee by the Company or
any of its Restricted Subsidiaries of Indebtedness of the Company or a
Restricted Subsidiary of the Company that was permitted to be incurred by
another provision of this Section 4.09; provided
that if the Indebtedness being guaranteed is subordinated to or pari passu with the Notes, then the
Guarantee shall be subordinated or pari
passu, as applicable, to the same extent as the Indebtedness
guaranteed;

 

(11) the incurrence by the Company or
any of its Restricted Subsidiaries of Indebtedness in respect of bankers’
acceptances, performance, bid and surety bonds and completion guarantees
provided in the ordinary course of business;

 

(12) the incurrence by the Company or
any of its Restricted Subsidiaries of Indebtedness arising from the honoring by
a bank or other financial institution of a check, draft or similar instrument
inadvertently drawn against insufficient funds in the ordinary course of
business;

 

(13) the incurrence of Indebtedness
arising from agreements of the Company or any of its Restricted Subsidiaries
providing for indemnification, adjustment of purchase price or similar
obligations, in each case, incurred in connection with the disposition of any
business, assets or a Restricted Subsidiary, other than the Guarantees of
Indebtedness incurred by any Person acquiring all or any portion of such
business, assets or a Restricted Subsidiary for the purpose of financing such
acquisition; provided, however,
that:

 

(a)   such Indebtedness is not reflected on the balance
sheet of the Company or any Restricted Subsidiary (contingent obligations
referred to in a footnote to financial statements and not otherwise reflected
on the balance sheet will not be deemed to be reflected on such balance sheet
for purposes of this clause (a)); and

 

(b)   the maximum assumable liability in respect of all such
Indebtedness shall at no time exceed the gross proceeds including non-cash
proceeds (the Fair Market Value of such non-cash proceeds being measured at the
time received and without giving effect to

 

43

 

any subsequent changes in value)
actually received by the Company and Restricted Subsidiaries in connection with
such disposition;

 

(14) the incurrence of Indebtedness
owed to any Person in connection with worker’s compensation, self-insurance,
health, disability or other employee benefits or property, casualty or
liability insurance provided by such Person to the Company or any of its Restricted
Subsidiaries, pursuant to reimbursement or indemnification obligations to such
Person, in each case incurred in the ordinary course of business and consistent
with past practices;

 

(15) pledges, deposits or payments
made or given in the ordinary course of business in connection with or to
secure statutory, regulatory or similar obligations, including obligations
under health, safety or environmental obligations, or arising from guarantees
to suppliers, lessors, licenses, contractors, franchisees or customers of
obligations, other than Indebtedness, made in the ordinary course of business;

 

(16) the incurrence of Indebtedness
by the Company or any of its Restricted Subsidiaries issued to directors,
officers or employees of the Company or any of its Restricted Subsidiaries in
connection with the redemption or purchase of Capital Stock that, by its terms,
is subordinated to the Notes, is not secured by any assets of the Company or
any of its Restricted Subsidiaries and does not require cash payments prior to
the Stated Maturity of the Notes, in an aggregate principal amount at any time
outstanding not to exceed $2.0 million;

 

(17) the incurrence of Indebtedness
by the Company or any Restricted Subsidiary to finance the acquisition
(including, without limitation, by way of a merger) of Capital Stock of any
Person engaged in, or assets used or useful in, a Permitted Business; provided
that the Fixed Charge Coverage Ratio for the Company’s most recently ended four
full fiscal quarters for which internal financial statements are available
immediately preceding the date on which such Indebtedness is incurred would
have been at least 1.75 to 1.0, determined on a pro forma basis (including a
pro forma application of the net proceeds therefrom), as if the Indebtedness
had been incurred at the beginning of such four-quarter period; and

 

(18) the incurrence by the Company or
any of its Restricted Subsidiaries of additional Indebtedness in an aggregate
principal amount (or accreted value, as applicable) at any time outstanding,
including all Permitted Refinancing Indebtedness incurred to renew, refund,
refinance, replace, defease or discharge any Indebtedness incurred pursuant to
this clause (18), not to exceed $20.0 million; and

 

(19) the incurrence by the
Company of Indebtedness in the form of Senior Subordinated Notes in connection
with the issuance of EISs or, if there are no EISs outstanding on the date of
such issuance, the issuance of our Class A common stock, (and in each case, the
incurrence of the related guarantees in respect of such Senior Subordinated
Notes by the Guarantors), provided that
(a) no Default or Event of Default has occurred and is continuing at the time
of such issuance or would be caused thereby, (b) the ratio of the aggregate
principal amount of such Senior Subordinated Notes over the number of
additional shares of the Company’s Class A common stock issued
contemporaneously therewith shall not exceed (i) the equivalent ratio with
respect to the EISs outstanding immediately prior to such issuance, or (ii) if
there are no EISs outstanding immediately prior to such issuance, the
equivalent ratio with respect to the EISs outstanding on the date hereof, and
(c) the Company uses the proceeds of such issuance solely to repurchase shares
of Class B common stock issued on or before the date hereeof from holders
thereof in accordance with the Securities Holders Agreement.

 

44

The Company will not
incur, and will not permit any Guarantor to incur, any Indebtedness (including
Permitted Debt) that is contractually subordinated in right of payment to any
other Indebtedness of the Company or such Guarantor unless such Indebtedness is
also contractually subordinated in right of payment to the Notes and the
applicable Note Guarantee on substantially identical terms; provided,
however, that no Indebtedness shall be deemed to be contractually
subordinated in right of payment to any other Indebtedness solely by virtue of
being unsecured or by virtue of being secured on a first or junior Lien basis.

 

For purposes of
determining compliance with this Section 4.09, in the event that an item of
proposed Indebtedness meets the criteria of more than one of the categories of
Permitted Debt described in clauses (1) through (19) above or is entitled to be
incurred pursuant to Section 4.09(a) hereof, the Company will be permitted to
classify such item of Indebtedness on the date of its incurrence, or later
reclassify all or a portion of such item of Indebtedness, in any manner that
complies with this Section 4.09. 
Indebtedness under Credit Facilities outstanding on the date on which
Notes are first issued and authenticated under this Indenture will initially be
deemed to have been incurred on such date in reliance on the exception provided
by clause (1) of the definition of Permitted Debt.  The accrual of interest, the accretion or amortization of
original issue discount, the payment of interest on any Indebtedness in the
form of additional Indebtedness with the same terms, and the payment of
dividends on Disqualified Stock in the form of additional shares of the same
class of Disqualified Stock will not be deemed to be an incurrence of
Indebtedness or an issuance of Disqualified Stock for purposes of this Section
4.09; provided, in each such
case, that the amount thereof is included in Fixed Charges of the Company as
accrued.  Notwithstanding any other
provision of this Section 4.09, the maximum amount of Indebtedness that the
Company or any Restricted Subsidiary may incur pursuant to this Section 4.09
shall not be deemed to be exceeded solely as a result of fluctuations in
exchange rates or currency values.

 

The amount of any
Indebtedness outstanding as of any date will be:

 

(1) the accreted
value of the Indebtedness, in the case of any Indebtedness issued with original
issue discount;

 

(2) the principal
amount of the Indebtedness, in the case of any other Indebtedness; and

 

(3) in respect of
Indebtedness of another Person secured by a Lien on the assets of the specified
Person, the lesser of:

 

(A) the Fair Market Value of such
assets at the date of determination; and

 

(B) the amount of the Indebtedness of
the other Person.

 

Section 4.10           Asset Sales.

 

The Company will not, and
will not permit any of its Restricted Subsidiaries to, consummate an Asset Sale
unless:

 

(1) the Company (or the Restricted
Subsidiary, as the case may be) receives consideration at the time of the Asset
Sale at least equal to the Fair Market Value of the assets or Equity Interests
issued or sold or otherwise disposed of; and

 

(2) at least 75% of the consideration
received in the Asset Sale by the Company or such Restricted Subsidiary is in
the form of cash or Cash Equivalents. 
For purposes of this provision, each of the following shall be deemed to
be cash:

 

45

 

(A)  any liabilities, as shown on the Company’s most recent
consolidated balance sheet, of the Company or any Restricted Subsidiary (other
than contingent liabilities and liabilities that are by their terms
subordinated to the Notes or any Note Guarantee) that are assumed by the
transferee of any such assets pursuant to a customary novation agreement that
releases the Company or such Restricted Subsidiary from further liability;

 

(B)   any securities, notes or other obligations received by
the Company or any such Restricted Subsidiary from such transferee that are
converted by the Company or such Restricted Subsidiary into cash within 180
days after such Asset Sale, to the extent of the cash received in that
conversion; and

 

(C)   any stock or assets of the kind referred to in clauses
(2) or (4) of the next paragraph of this Section 4.10.

 

Any Asset Sale pursuant
to a condemnation, appropriation or other similar taking, including by deed in
lieu of condemnation, or pursuant to the foreclosure or other enforcement of a
Permitted Lien or exercise by the related lienholder of rights with respect to
any of the foregoing, including by deed or assignment in lieu of foreclosure,
will not be required to satisfy the conditions set forth in the preceding
paragraph.  Within 360 days after the
receipt of any Net Proceeds from an Asset Sale, the Company (or the applicable
Restricted Subsidiary, as the case may be) may apply such Net Proceeds, at its
option:

 

(1)           to
repay, prepay or purchase Indebtedness and other Obligations under a Credit
Facility and, if the Indebtedness repaid is revolving credit Indebtedness to
correspondingly reduce commitments with respect thereto;

 

(2)           to
acquire all or substantially all of the assets of another Permitted Business,
or to acquire any Capital Stock of another Permitted Business, if, after giving
effect to any such acquisition of Capital Stock, the Permitted Business is or
becomes a Restricted Subsidiary of the Company;

 

(3)           to make a
capital expenditure;

 

(4)           to
acquire other assets that are not classified as current assets under GAAP and
that are used or useful in a Permitted Business; or

 

(5)           any
combination of the foregoing clauses (1) through (4).

 

In the case of clauses
(2) and (4) above, the Company will be deemed to have complied with its
obligations in the preceding paragraph if it enters into a binding commitment
to acquire such assets or Capital Stock prior to 360 days after the receipt of
the applicable Net Proceeds; provided
that such binding commitment will be subject only to customary conditions and
such acquisition is completed within 180 days following the expiration of the
aforementioned 360 day period.  If the
acquisition contemplated by such binding commitment is not consummated on or
before such 180th day, and the Company has not applied the
applicable Net Proceeds for another purpose permitted by the preceding
paragraph on or before such 180th day, such commitment shall be
deemed not have been a permitted application of Net Proceeds.  Pending the final application of any Net
Proceeds, the Company may temporarily reduce revolving credit borrowings or
otherwise invest the Net Proceeds in any manner that is not prohibited by this
Indenture.

 

Any Net Proceeds from
Asset Sales that are not applied or invested as provided in the second
paragraph of this Section 4.10 will constitute “Excess Proceeds.” 
When the aggregate amount of Excess Proceeds exceeds $10.0 million,
within 30 days thereof, the Company will make an Asset Sale Offer to all

 

46

 

Holders of Notes and all
Holders of other Indebtedness that is pari
passu with the Notes containing provisions similar to those set
forth in this Indenture with respect to offers to purchase or redeem with the
proceeds of sales of assets to purchase the maximum principal amount of Notes
and such other pari passu
Indebtedness that may be purchased out of the Excess Proceeds.  The offer price in any Asset Sale Offer will
be equal to 100% of the principal amount plus accrued and unpaid interest to
the date of purchase and will be payable in cash.  If any Excess Proceeds remain after consummation of an Asset Sale
Offer, the Company may use those Excess Proceeds for any purpose not otherwise
prohibited by this Indenture. If the aggregate principal amount of Notes and
other pari passu Indebtedness
tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds, the
Trustee will select the Notes and such other pari
passu Indebtedness to be purchased on a pro rata basis.  Upon
completion of each Asset Sale Offer, the amount of Excess Proceeds will be
reset at zero.

 

Any Asset Sale Offer will
be made in compliance with all applicable laws, rules and regulations,
including, if applicable, Regulation 14E under the Exchange Act and the rules
thereunder and all other applicable Federal and state securities laws.  To the extent that the provisions of any
securities laws or regulations conflict with the provisions of this Section
4.10, the Company’s compliance with those laws and regulations will not in and
of itself cause a breach of its obligations under this Section 4.10.

 

Section 4.11           Transactions with
Affiliates.

 

(a)   The Company will not, and will not
permit any of its Restricted Subsidiaries to, on or after the date of this
Indenture, make any payment to, or sell, lease, transfer or otherwise dispose
of any of its properties or assets to, or purchase any property or assets from,
or enter into or make or amend any transaction, contract, agreement,
understanding, loan, advance or guarantee with, or for the benefit of, any
Affiliate of the Company (each, an “Affiliate
Transaction”), unless:

 

(1) the Affiliate Transaction is on
terms that are no less favorable to the Company or the relevant Restricted
Subsidiary than those that would have been obtained in a comparable transaction
by the Company or such Restricted Subsidiary with a Person that is not an
Affiliate of the Company; and

 

(2) The Company delivers to the
Trustee:

 

(A) with respect to any Affiliate
Transaction or series of related Affiliate Transactions involving aggregate
consideration in excess of $5.0 million, a resolution of the Board of Directors
of the Company set forth in an Officer’s Certificate certifying that such
Affiliate Transaction complies with this Section 4.11(a) and that such
Affiliate Transaction has been approved by a majority of the disinterested
members of the Board of Directors of the Company or, if none, a disinterested
representative appointed by the Board of Directors for such purpose; and

 

(B) with respect to any Affiliate
Transaction or series of related Affiliate Transactions involving aggregate
consideration in excess of $20.0 million, an opinion as to the fairness to the
Company or such Subsidiary of such Affiliate Transaction from a financial point
of view or that such Affiliate Transaction is not less favorable to the Company
and its Restricted Subsidiaries than could reasonably be expected to be
obtained in a comparable transaction with a Person that is not an Affiliate of
the Company, as issued by an accounting, appraisal or investment banking firm
of national standing.

 

47

 

(b)   The following items will not be
deemed to be Affiliate Transactions and, therefore, will not be subject to the
provisions of Section 4.11(a) hereof:

 

(1) any employment agreement, officer
or director indemnification agreement or any similar arrangement entered into
by the Company or any of its Restricted Subsidiaries in the ordinary course of
business and payments pursuant thereto;

 

(2) transactions between or among the
Company and/or its Restricted Subsidiaries;

 

(3) transactions with a Person (other
than an Unrestricted Subsidiary of the Company) that is an Affiliate of the
Company solely because the Company owns, directly or through a Restricted
Subsidiary, an Equity Interest in, or controls, such Person;

 

(4) fees and compensation paid to
officers and employees of the Company or any Restricted Subsidiaries, to the
extent such fees and compensation are reasonable and customary, and payment of
reasonable directors’ fees to Persons who are not otherwise Affiliates of the
Company;

 

(5) any issuance or sale of Equity
Interests (other than Disqualified Stock) of the Company to Affiliates,
employees, officers and directors of the Company or any of its Restricted
Subsidiaries;

 

(6) Restricted Payments that are
permitted by Section 4.07 hereof;

 

(7) fees payable to BRS or an Affiliate
of BRS under the Transaction Services Agreement;

 

(8) maintenance
in the ordinary course of business of customary benefit programs or
arrangements for employees, officers or directors, including vacation plans,
health and life insurance plans, deferred compensation plans and retirement or
savings plans and similar plans;

 

(9) loans or advances to employees in
the ordinary course of business not to exceed $1.0 million in the aggregate at
any one time outstanding;

 

(10) any agreement as in effect and
entered into as of the date of this Indenture, including the Securities Holders
Agreement, or any amendment thereto or any transaction contemplated thereby
(including pursuant to any amendment thereto) in any replacement agreement
thereto so long as any such amendment or replacement agreement is not more
disadvantageous to the Holders of the Notes in any material respect than the
original agreement as in effect on the date of this Indenture;

 

(11) any transaction or series of
transactions between the Company or any Restricted Subsidiary and any of their
Joint Ventures; provided that (a)
such transaction or series of transactions is in the ordinary course of
business between the Company or such Restricted Subsidiary and such Joint
Venture and (b) with respect to any such Affiliate Transaction involving
aggregate consideration in excess of $5.0 million, such Affiliate Transaction
complies with Section 4.11(a)(1) hereof and such Affiliate Transaction has been
approved by the Board of Directors of the Company;

 

(12) any service, purchase, lease,
supply or similar agreement entered into in the ordinary course of business
between the Company or any Restricted Subsidiary and any Affiliate that is a

 

48

 

customer, client, supplier or purchaser or seller of goods or
services, so long as the senior management or Board of Directors of the Company
determines in good faith that any such agreement is on terms no less favorable
to the Company or such Restricted Subsidiary than those that could be obtained
in a comparable arms’-length transaction with an entity that is not an
Affiliate; and

 

(13) the payment of all fees and
expenses related to the Transactions.

 

Section 4.12           Liens.

 

The Company will not, and
will not permit any of its Restricted Subsidiaries to, directly or indirectly,
create, incur, assume or suffer to exist any Lien of any kind (other than
Permitted Liens) to secure Indebtedness of any kind on any asset now owned or
hereafter acquired, unless all payments due under this Indenture and the Notes
are secured on an equal and ratable basis with the obligations so secured (or,
if such obligations are subordinated by their terms to the Notes or the Note
Guarantees, prior to the obligations so secured) until such time as such
obligations are no longer secured by a Lien.

 

Section 4.13           Business
Activities.

 

The Company will not, and
will not permit any of its Restricted Subsidiaries to, engage in any business
other than Permitted Businesses, except to such extent as would not be material
to the Company and its Restricted Subsidiaries taken as a whole, as reasonably
determined in good faith by the Board of Directors of the Company.

 

Section 4.14           Corporate
Existence.

 

Subject to Article 5
hereof, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect:

 

(1) its corporate existence, and the
corporate, partnership or other existence of each of its Subsidiaries, in
accordance with the respective organizational documents (as the same may be
amended from time to time) of the Company or any such Subsidiary; and

 

(2) the rights (charter and
statutory), licenses and franchises of the Company and its Subsidiaries; provided,
however, that the Company shall not be required to preserve any such
right, license or franchise, or the corporate, partnership or other existence
of any of its Subsidiaries, if the Board of Directors shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Company and its Subsidiaries, taken as a whole, and that the loss thereof
is not adverse in any material respect to the Holders of the Notes.

 

Section 4.15           Offer to Repurchase
Upon Change of Control.

 

(a) If a Change of Control occurs, each Holder of
Notes will have the right to require the Company to repurchase all or any part
(equal to $1,000 or an integral multiple of $1,000) of that Holder’s Notes
pursuant to a Change of Control Offer on the terms set forth herein.  In the Change of Control Offer (subject to
the conditions required by applicable law, if any), the Company will offer a
Change of Control Payment in cash equal to 101% of the aggregate principal
amount of Notes repurchased plus accrued and unpaid interest, if any, on the
Notes repurchased to the date of purchase, subject to the rights of Holders of
Notes on the relevant record date to receive interest due on the relevant
interest payment date (the “Change of
Control Payment”).  No
earlier than ten days and no later than 20 days following any Change

 

49

 

of Control, the Company will mail a
notice to each Holder describing the transaction or transactions that
constitute the Change of Control and stating:

 

(1)
that the Change of Control Offer is being made pursuant to this Section
4.15 and that all Notes tendered will be accepted for payment;

 

(2)
the purchase price and the purchase date, which shall be no earlier than
30 days and no later than 60 days from the date such notice is mailed (the “Change of
Control Payment Date”);

 

(3)
that any Note not tendered will continue to accrue interest;

 

(4)
that, unless the Company defaults in the payment of the Change of
Control Payment, all Notes accepted for payment pursuant to the Change of
Control Offer will cease to accrue interest after the Change of Control Payment
Date;

 

(5)
that Holders electing to have any Notes purchased pursuant to a Change
of Control Offer will be required to surrender the Notes, with the form
entitled “Option of Holder to Elect Purchase” attached to the Notes completed,
or transfer by book-entry transfer, to the Paying Agent at the address
specified in the notice prior to the close of business on the third Business
Day preceding the Change of Control Payment Date;

 

(6)
that Holders will be entitled to withdraw their election if the Paying
Agent receives, not later than the close of business on the second Business Day
preceding the Change of Control Payment Date, a telegram, telex, facsimile
transmission or letter setting forth the name of the Holder, the principal
amount of Notes delivered for purchase, and a statement that such Holder is
withdrawing his election to have the Notes purchased; and

 

(7)
that Holders whose Notes are being purchased only in part will be issued
new Notes equal in principal amount to the unpurchased portion of the Notes
surrendered, which unpurchased portion must be equal to $1,000 in principal
amount or an integral multiple thereof.

 

The Company will comply
with the requirements of Rule 14e-1 under the Exchange Act and any other
securities laws and regulations thereunder to the extent those laws and
regulations are applicable in connection with the repurchase of the Notes as a
result of a Change in Control.  To the
extent that the provisions of any securities laws or regulations conflict with
the provisions of Sections 3.09 or 4.15 hereof, the Company will comply with
the applicable securities laws and regulations and will not be deemed to have
breached its obligations under Section 3.09 hereof or this Section 4.15 by virtue
of such compliance.

 

(b) On the Change of Control Payment Date, the Company
will, to the extent lawful:

 

(1) accept for payment all Notes or
portions of Notes properly tendered pursuant to the Change of Control Offer;

 

(2) deposit with the Paying Agent an
amount equal to the Change of Control Payment in respect of all Notes or
portions of Notes properly tendered; and

 

(3) deliver or cause to be delivered
to the Trustee the Notes properly accepted together with an Officer’s
Certificate stating the aggregate principal amount of Notes or portions of
Notes being purchased by the Company.

 

50

 

The Paying Agent will
promptly mail (but in any case not later than five days after the Change of
Control Payment Date) to each Holder of Notes properly tendered the Change of
Control Payment for such Notes, and the Trustee will promptly authenticate and
mail (or cause to be transferred by book entry) to each Holder a new Note equal
in principal amount to any unpurchased portion of the Notes surrendered, if
any.  The Company will publicly announce
the results of the Change of Control Offer on or as soon as practicable after
the Change of Control Payment Date.

 

Notwithstanding anything
to the contrary in this Section 4.15, the Company will not be required to make
a Change of Control Offer upon a Change of Control if (1) a third party makes
the Change of Control Offer in the manner, at the times and otherwise in
compliance with the requirements set forth in Section 4.15 and Section 3.09
hereof and purchases all Notes properly tendered and not withdrawn under the
Change of Control Offer, or (2) notice of redemption has been given pursuant to
Section 3.07 hereof, unless and until there is a default in payment of the
applicable redemption price.

 

Section 4.16           No Amendment to
Subordination Provisions.

 

Without the consent of
the Holders of at least a majority in aggregate principal amount of the Notes
then outstanding, the Company will not amend, modify or alter the Senior
Subordinated Note Indenture in any way to:

 

(1) increase the rate of or change
the time for payment of interest on any Senior Subordinated Notes;

 

(2) increase the principal of,
advance the final maturity date of or shorten the Weighted Average Life to
Maturity of any Senior Subordinated Notes;

 

(3) alter the redemption provisions
or the price or terms at which the Company is required to offer to purchase any
Senior Subordinated Notes; or

 

(4) amend the provisions of Article
10 of the Senior Subordinated Note Indenture (which relate to subordination).

 

Section 4.17           Limitation on Sale
and Leaseback Transactions.

 

The Company will not, and
will not permit any of its Restricted Subsidiaries to, enter into any sale and
leaseback transaction; provided that the Company or any Guarantor
may enter into a sale and leaseback transaction if:

 

(1) the Company or that Guarantor, as
applicable, could have (a) incurred Indebtedness in an amount equal to the
Attributable Debt relating to such sale and leaseback transaction under the Fixed
Charge Coverage Ratio test in Section 4.09(a) hereof and (b) incurred a Lien to
secure such Indebtedness pursuant to the provisions of Section 4.12 hereof;

 

(2) the gross cash proceeds of that
sale and leaseback transaction are at least equal to the Fair Market Value of
the property that is the subject of that sale and leaseback transaction; and

 

(3) the transfer of assets in that
sale and leaseback transaction is permitted by, and the Company applies the
proceeds of such transaction in compliance with, Section 4.10 hereof.

 

51

 

Section 4.18           Payments for
Consent.

 

The Company will not, and
will not permit any of its Restricted Subsidiaries to, directly or indirectly,
pay or cause to be paid any consideration to or for the benefit of any Holder
of Notes for or as an inducement to any consent, waiver or amendment of any of
the terms or provisions of this Indenture or the Notes unless such
consideration is offered to be paid and is paid to all Holders of the Notes
that consent, waive or agree to amend in the time frame set forth in the
solicitation documents relating to such consent, waiver or agreement.

 

Section 4.19           Additional Note
Guarantees.

 

If the Company or any of
its Restricted Subsidiaries acquires or creates another Domestic Subsidiary
after the date of this Indenture, then that newly acquired or created Domestic
Subsidiary will become a Guarantor and execute a supplemental indenture and
deliver an Opinion of Counsel (subject to customary assumptions and exceptions)
satisfactory to the Trustee within 10 Business Days of the date on which it was
acquired or created; provided that
any Domestic Subsidiary that constitutes an Immaterial Subsidiary need not
become a Guarantor until such time as it ceases to be an Immaterial
Subsidiary.  The form of such Note
Guarantee is attached as Exhibit E hereto.

 

Section 4.20           Designation of
Restricted and Unrestricted Subsidiaries.

 

The Board of Directors of
the Company may designate any Restricted Subsidiary to be an Unrestricted
Subsidiary if that designation would not cause a Default.  If a Restricted Subsidiary is designated as
an Unrestricted Subsidiary, the aggregate Fair Market Value of all outstanding
Investments owned by the Company and its Restricted Subsidiaries in the
Subsidiary designated as Unrestricted will be deemed to be an Investment made
as of the time of the designation and will reduce the amount available for
Restricted Payments under Section 4.07 hereof or under one or more clauses of
the definition of Permitted Investments, as determined by the Company.  That designation will only be permitted if
the Investment would be permitted at that time and if the Restricted Subsidiary
otherwise meets the definition of an Unrestricted Subsidiary.  The Board of Directors of the Company may
redesignate any Unrestricted Subsidiary to be a Restricted Subsidiary if that
redesignation would not cause a Default.

 

Any designation of a
Subsidiary of the Company as an Unrestricted Subsidiary will be evidenced to
the Trustee by filing with the Trustee a certified copy of a resolution of the
Board of Directors giving effect to such designation and an Officers’
Certificate certifying that such designation complied with the preceding
conditions and was permitted by Section 4.07 hereof.  If, at any time, any Unrestricted Subsidiary would fail to meet
the preceding requirements as an Unrestricted Subsidiary, it will thereafter
cease to be an Unrestricted Subsidiary for purposes of this Indenture and any
Indebtedness of such Subsidiary will be deemed to be incurred by a Restricted
Subsidiary of the Company as of such date and, if such Indebtedness is not
permitted to be incurred as of such date under Section 4.09 hereof, the Company
will be in default of such covenant. 
The Board of Directors of the Company may at any time designate any
Unrestricted Subsidiary to be a Restricted Subsidiary; provided that such designation will be
deemed to be an incurrence of Indebtedness by a Restricted Subsidiary of the
Company of any outstanding Indebtedness of such Unrestricted Subsidiary and
such designation will only be permitted if (1) such Indebtedness is permitted
under Section 4.09 hereof, calculated on a pro forma basis as if such
designation had occurred at the beginning of the four-quarter reference period;
and (2) no Default or Event of Default would be in existence following such
designation.

 

52

 

ARTICLE 5

SUCCESSORS

 

Section 5.01           Merger,
Consolidation, or Sale of Assets.

 

The Company shall not,
directly or indirectly: (1) consolidate or merge with or into another Person
(whether or not the Company is the surviving entity); or (2) sell, assign,
transfer, convey or otherwise dispose of all or substantially all of the
properties or assets (such amounts to be computed on a consolidated basis) of
the Company and its Restricted Subsidiaries taken as a whole, in one or more
related transactions, to another Person, unless:

 

(1) either: (a) the Company is the
surviving corporation; or (b) the Person formed by or surviving any such
consolidation or merger (if other than the Company) or to which such sale,
assignment, transfer, conveyance or other disposition has been made is either
(i) a corporation organized or existing under the laws of the United States,
any state of the United States or the District of Columbia or (ii) a
partnership or limited liability company organized or existing under the laws
of the United States, any state of the United States or the District of
Columbia that has at least one Restricted Subsidiary that is a corporation
organized or existing under the laws of the United States, any state of the
United States or the District of Columbia, which corporation becomes the
co-issuer of the Notes pursuant to a supplemental indenture reasonably
satisfactory to the Trustee;

 

(2) the Person formed by or surviving
any such consolidation or merger (if other than the Company) or the Person to
which such sale, assignment, transfer, conveyance or other disposition has been
made assumes all the obligations of the Company under the Notes and this
Indenture pursuant to agreements reasonably satisfactory to the Trustee;

 

(3) immediately after such
transaction, no Default or Event of Default exists; and

 

(4) the Company or the Person formed
by or surviving any such consolidation or merger (if other than the Company),
or to which such sale, assignment, transfer, conveyance or other disposition
has been made would, on the date of such transaction after giving pro forma
effect thereto and any related financing transactions as if the same had
occurred at the beginning of the applicable four-quarter period, either:

 

(A) be permitted to incur at least
$1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio
test set forth in Section 4.09(a) hereof.

 

(B) have a Fixed Charge Coverage
Ratio that is equal to or greater than the Fixed Charge Coverage Ratio of the
Company immediately prior to such consolidation, merger, sale, assignment,
transfer, conveyance or other disposition.

 

In addition, the Company
shall not, directly or indirectly, lease all or substantially all of the
properties and assets of it and its Restricted Subsidiaries taken as a whole,
in one or more related transactions, to any other Person.

 

This Section 5.01 will
not apply to:

 

(1) a merger of the
Company with an Affiliate solely for the purpose of reincorporating the Company
in another jurisdiction; or

 

53

 

(2) any consolidation or
merger, or any sale, assignment, transfer, conveyance, lease or other
disposition of assets between or among the Company and its Restricted
Subsidiaries.

 

Section 5.02           Successor
Corporation Substituted.

 

Upon any consolidation or
merger, or any sale, assignment, transfer, lease, conveyance or other disposition
of all or substantially all of the properties or assets of the Company in a
transaction that is subject to, and that complies with the provisions of,
Section 5.01 hereof, the successor Person formed by such consolidation or into
or with which the Company is merged or to which such sale, assignment,
transfer, lease, conveyance or other disposition is made shall succeed to, and
be substituted for (so that from and after the date of such consolidation,
merger, sale, assignment, transfer, lease, conveyance or other disposition, the
provisions of this Indenture referring to the “Company” shall refer instead to
the successor Person and not to the Company), and may exercise every right and
power of the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein; provided, however, that the
predecessor Company shall not be relieved from the obligation to pay the
principal of and interest on the Notes except in the case of a sale of all of
the Company’s assets in a transaction that is subject to, and that complies
with the provisions of, Section 5.01 hereof.

 

ARTICLE 6

DEFAULTS AND REMEDIES

 

Section 6.01           Events of Default.

 

Each of the following
will be an “Event of Default”:

 

(1) default for 30 days in the
payment when due of interest on the Notes;

 

(2) default in the payment when due
(at maturity, upon redemption or otherwise) of the principal of, or premium, if
any, on, the Notes;

 

(3) failure by the Company or any of
its Restricted Subsidiaries to comply with the provisions of Section 5.01
hereof;

 

(4) failure by the Company or any of
its Restricted Subsidiaries for 30 days to comply with the provisions of
Sections 4.10 and 4.15 hereof.

 

(5) failure by the Company or any of
its Restricted Subsidiaries for 60 days after written notice to the Company by
the Trustee or the Holders of at least 25% in aggregate principal amount of the
Notes then outstanding voting as a single class to comply with any of the other
agreements in this Indenture;

 

(6) default under any mortgage,
indenture or instrument under which there may be issued or by which there may
be secured or evidenced any Indebtedness for money borrowed by the Company or
any of its Restricted Subsidiaries (or the payment of which is guaranteed by
the Company or any of its Restricted Subsidiaries), whether such Indebtedness
or Guarantee now exists, or is created after the date of this Indenture, if
that default:

 

(A) is caused by a failure to pay
principal of, or interest or premium, if any, on, such Indebtedness prior to
the expiration of the grace period provided in such Indebtedness on the date of
such default (a “Payment Default”); or

 

54

 

(B) results in the acceleration of
such Indebtedness prior to its express maturity,

 

and, in each case, the principal amount of any such
Indebtedness, together with the principal amount of any other such Indebtedness
under which there has been a Payment Default] or the maturity of which has been
so accelerated, aggregates $10.0 million or more;

 

(7) failure by the Company or any of
its Restricted Subsidiaries to pay final judgments entered by a court or courts
of competent jurisdiction aggregating in excess of $10.0 million, which
judgments are not paid, discharged or stayed for a period of 60 days after
their entry;

 

(8) except as permitted by this
Indenture, any Note Guarantee is held in any judicial proceeding to be
unenforceable or invalid or ceases for any reason to be in full force and
effect, or any Guarantor, or any Person acting on behalf of any Guarantor,
denies or disaffirms its obligations under its Note Guarantee;

 

(9) a payment of dividends by
the Company on its common stock (A) during the continuance of an Event of
Default, (B) pursuant to the second clause (1) under Section 4.07, when the
then-available financial statements presented to the Board of Directors show a
Fixed Charge Coverage Ratio of less than 1.6 to 1.0, or (C) pursuant to the
second clause (2) under Section 4.07, when the then-available financial
statements presented to the Board of Directors show that the amount of
dividends exceeds the amount permitted to be paid under such clause;

 

(10) the Company or any of its
Restricted Subsidiaries that is a Significant Subsidiary or any group of
Restricted Subsidiaries of the Company that, taken together, would constitute a
Significant Subsidiary pursuant to or within the meaning of Bankruptcy Law:

 

(A) commences a voluntary case,

 

(B) consents to the entry of an order
for relief against it in an involuntary case,

 

(C) consents to the appointment of a
custodian of it or for all or substantially all of its property,

 

(D) makes a general assignment for
the benefit of its creditors, or

 

(E) generally is not paying its debts
as they become due; or

 

(11) a court of competent
jurisdiction enters an order or decree under any Bankruptcy Law that:

 

(A) is for relief against the Company
or any of its Restricted Subsidiaries that is a Significant Subsidiary or any
group of Restricted Subsidiaries of the Company that, taken together, would
constitute a Significant Subsidiary in an involuntary case;

 

(B) appoints a custodian of the
Company or any of its Restricted Subsidiaries that is a Significant Subsidiary
or any group of Restricted Subsidiaries of the Company that, taken together,
would constitute a Significant Subsidiary or for all or substantially all of
the property of the Company or any of its Restricted Subsidiaries that is a
Significant Subsidiary or any group of Restricted Subsidiaries of the Company
that, taken together, would constitute a Significant Subsidiary; or

 

55

 

(C) orders the liquidation of the
Company or any of its Restricted Subsidiaries that is a Significant Subsidiary
or any group of Restricted Subsidiaries of the Company that, taken together,
would constitute a Significant Subsidiary;

 

and the order or decree remains unstayed and in effect
for 60 consecutive days.

 

Section 6.02           Acceleration.

 

In the case of an Event
of Default specified in clause (8) or (9) of Section 6.01 hereof, with respect
to the Company, any Restricted Subsidiary of the Company that is a Significant
Subsidiary or any group of Restricted Subsidiaries of the Company that, taken
together, would constitute a Significant Subsidiary, all outstanding Notes will
become due and payable immediately without further action or notice.  If any other Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in aggregate principal
amount of the then outstanding Notes may declare all the Notes to be due and
payable immediately.

 

Upon any such
declaration, the Notes shall become due and payable immediately.

 

The Holders of a majority
in aggregate principal amount of the then outstanding Notes by written notice
to the Trustee may, on behalf of all of the Holders, rescind an acceleration
and its consequences, if the rescission would not conflict with any judgment or
decree and if all existing Events of Default (except nonpayment of principal,
interest or premium that has become due solely because of the acceleration)
have been cured or waived.

 

If an Event of Default
occurs on or after October 1, 2008 by reason of any willful action (or
inaction) taken (or not taken) by or on behalf of the Company with the
intention of avoiding payment of the premium that the Company would have had to
pay if the Company then had elected to redeem the Notes pursuant to Section
3.07 hereof, then, upon acceleration of the Notes, an equivalent premium shall
also become and be immediately due and payable, to the extent permitted by law,
anything in this Indenture or in the Notes to the contrary notwithstanding. If
an Event of Default occurs prior to October 1, 2008 by reason of any willful
action (or inaction) taken (or not taken) by or on behalf of the Company with
the intention of avoiding the prohibition on redemption of the Notes prior to
such date, then, upon acceleration of the Notes, an additional premium shall
also become and be immediately due and payable, to the extent permitted by law,
in an amount, for each of the years beginning on October 1 of the years set
forth below, as set forth below (expressed as a percentage of the principal
amount of the Notes on the date of payment that would otherwise be due but for
the provisions of this sentence):

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2004

  	
   

  	
  8.00

  	
  %

  
	
  2005

  	
   

  	
  7.00

  	
  %

  
	
  2006

  	
   

  	
  6.00

  	
  %

  
	
  2007

  	
   

  	
  5.00

  	
  %

  

 

Section 6.03           Other Remedies.

 

If an Event of Default
occurs and is continuing, the Trustee may pursue any available remedy to
collect the payment of principal, premium and interest on the Notes or to
enforce the performance of any provision of the Notes or this Indenture.

 

The Trustee may maintain
a proceeding even if it does not possess any of the Notes or does not produce
any of them in the proceeding.  A delay
or omission by the Trustee or any Holder of a Note in

 

56

 

exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy
or constitute a waiver of or acquiescence in the Event of Default.  All remedies are cumulative to the extent
permitted by law.

 

Section 6.04           Waiver of Past
Defaults.

 

Holders of not less than
a majority in aggregate principal amount of the then outstanding Notes by
notice to the Trustee may on behalf of the Holders of all of the Notes waive an
existing Default or Event of Default and its consequences hereunder, except a
continuing Default or Event of Default in the payment of the principal of,
premium or interest on, the Notes (including in connection with an offer to
purchase); provided,
however, that the Holders of a majority in aggregate principal
amount of the then outstanding Notes may rescind an acceleration and its
consequences, including any related payment default that resulted from such
acceleration.  Upon any such waiver,
such Default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

 

Section 6.05           Control by
Majority.

 

Holders of a majority in
aggregate principal amount of the then outstanding Notes may direct the time,
method and place of conducting any proceeding for exercising any remedy
available to the Trustee or exercising any trust or power conferred on it.  However, the Trustee may refuse to follow
any direction that conflicts with law or this Indenture that the Trustee
determines in good faith may be prejudicial to the rights of other Holders of
Notes or that may involve the Trustee in personal liability.

 

Section 6.06           Limitation on
Suits.

 

A Holder may pursue a
remedy with respect to this Indenture or the Notes only if:

 

(1) such Holder gives to the Trustee
written notice that an Event of Default is continuing;

 

(2) Holders of at least 25% in
aggregate principal amount of the then outstanding Notes make a written request
to the Trustee to pursue the remedy;

 

(3) such Holder or Holders offer and,
if requested, provide to the Trustee security or indemnity reasonably
satisfactory to the Trustee against any loss, liability or expense;

 

(4) the Trustee does not comply with
the request within 60 days after receipt of the request and the offer of
security or indemnity; and

 

(5) during such 60-day period,
Holders of a majority in aggregate principal amount of the then outstanding
Notes do not give the Trustee a direction inconsistent with such request.

 

A Holder of a Note may
not use this Indenture to prejudice the rights of another Holder of a Note or
to obtain a preference or priority over another Holder of a Note.

 

Section 6.07           Rights of Holders
of Notes to Receive Payment.

 

Notwithstanding any other
provision of this Indenture, the right of any Holder of a Note to receive
payment of principal, premium and interest on the Note, on or after the
respective due dates expressed in the Note (including in connection with an
offer to purchase), or to bring suit for the

 

57

 

enforcement of any such
payment on or after such respective dates, shall not be impaired or affected
without the consent of such Holder.

 

Section 6.08           Collection Suit by
Trustee.

 

If an Event of Default
specified in Section 6.01(1) or (2) hereof occurs and is continuing, the
Trustee is authorized to recover judgment in its own name and as trustee of an
express trust against the Company for the whole amount of principal of, premium
and interest remaining unpaid on, the Notes and interest on overdue principal
and, to the extent lawful, interest and such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

 

Section 6.09           Trustee May File
Proofs of Claim.

 

The Trustee is authorized
to file such proofs of claim and other papers or documents as may be necessary
or advisable in order to have the claims of the Trustee (including any claim
for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and the Holders of the Notes allowed in any
judicial proceedings relative to the Company (or any other obligor upon the
Notes), its creditors or its property and shall be entitled and empowered to
collect, receive and distribute any money or other property payable or
deliverable on any such claims and any custodian in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee, and in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due to it
for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07 hereof.  To the extent that
the payment of any such compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, and any other amounts due the Trustee
under Section 7.07 hereof out of the estate in any such proceeding, shall be
denied for any reason, payment of the same shall be secured by a Lien on, and
shall be paid out of, any and all distributions, dividends, money, securities
and other properties that the Holders may be entitled to receive in such
proceeding whether in liquidation or under any plan of reorganization or
arrangement or otherwise.  Nothing
herein contained shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization,
arrangement, adjustment or composition affecting the Notes or the rights of any
Holder, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.

 

Section 6.10           Priorities.

 

If the Trustee collects
any money pursuant to this Article 6, it shall pay out the money in the
following order:

 

First:              to
the Trustee, its agents and attorneys for amounts due under Section 7.07
hereof, including payment of all compensation, expenses and liabilities
incurred, and all advances made, by the Trustee and the costs and expenses of
collection;

 

Second:          to
Holders of Notes for amounts due and unpaid on the Notes for principal, premium
and interest, ratably, without preference or priority of any kind, according to
the amounts due and payable on the Notes for principal, premium and interest,
respectively; and

 

Third:             to
the Company or to such party as a court of competent jurisdiction shall direct.

 

58

 

The Trustee may fix a
record date and payment date for any payment to Holders of Notes pursuant to
this Section 6.10.

 

Section 6.11           Undertaking for
Costs.

 

In any suit for the
enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as a Trustee, a court in its
discretion may require the filing by any party litigant in the suit of an
undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys’ fees and expenses
against any party litigant in the suit, having due regard to the merits and
good faith of the claims or defenses made by the party litigant.  This Section 6.11 does not apply to a suit
by the Trustee, a suit by a Holder of a Note pursuant to Section 6.07 hereof,
or a suit by Holders of more than 10% in aggregate principal amount of the then
outstanding Notes.

 

ARTICLE 7

TRUSTEE

 

Section 7.01           Duties of Trustee.

 

(a)   If an Event of Default has occurred
and is continuing, the Trustee will exercise such of the rights and powers vested
in it by this Indenture, and use the same degree of care and skill in its
exercise, as a prudent person would exercise or use under the circumstances in
the conduct of such person’s own affairs.

 

(b)   Except during the continuance of an
Event of Default:

 

(1) the duties of the Trustee will be
determined solely by the express provisions of this Indenture and the Trustee
need perform only those duties that are specifically set forth in this
Indenture and no others, and no implied covenants or obligations shall be read
into this Indenture against the Trustee; and

 

(2) in the absence of bad faith on
its part, the Trustee may conclusively rely, as to the truth of the statements
and the correctness of the opinions expressed therein, upon certificates or
opinions furnished to the Trustee and conforming to the requirements of this
Indenture.  However, the Trustee will
examine the certificates and opinions to determine whether or not they conform
to the requirements of this Indenture.

 

(c)   The Trustee may not be relieved from
liabilities for its own negligent action, its own negligent failure to act, or
its own willful misconduct, except that:

 

(1) this paragraph does not limit the
effect of paragraph (b) of this Section 7.01;

 

(2) the Trustee will not be liable for
any error of judgment made in good faith by a Responsible Officer, unless it is
proved that the Trustee was negligent in ascertaining the pertinent facts; and

 

(3) the Trustee will not be liable
with respect to any action it takes or omits to take in good faith in
accordance with a direction received by it pursuant to Section 6.05 hereof.

 

(d)   Whether or not therein expressly so
provided, every provision of this Indenture that in any way relates to the
Trustee is subject to paragraphs (a), (b), and (c) of this Section 7.01.

 

59

 

(e)   No provision of this Indenture will
require the Trustee to expend or risk its own funds or incur any
liability.  The Trustee will be under no
obligation to exercise any of its rights and powers under this Indenture at the
request of any Holders, unless such Holder has offered to the Trustee security
and indemnity satisfactory to it against any loss, liability or expense.

 

(f)    The Trustee will not be liable for
interest on any money received by it except as the Trustee may agree in writing
with the Company.  Money held in trust
by the Trustee need not be segregated from other funds except to the extent
required by law.

 

Section 7.02           Rights of Trustee.

 

(a)   The Trustee may conclusively rely
and shall be protected in acting or refraining from acting upon any document
believed by it to be genuine and to have been signed or presented by the proper
Person.  The Trustee need not
investigate any fact or matter stated in the document.

 

(b)   Before the Trustee acts or refrains
from acting, it may require an Officers’ Certificate or an Opinion of Counsel
or both.  The Trustee will not be liable
for any action it takes or omits to take in good faith in reliance on such
Officers’ Certificate or Opinion of Counsel. 
The Trustee may consult with counsel and the written advice of such
counsel or any Opinion of Counsel will be full and complete authorization and
protection from liability in respect of any action taken, suffered or omitted
by it hereunder in good faith and in reliance thereon.

 

(c)   The Trustee may act through its
attorneys and agents and will not be responsible for the misconduct or
negligence of any agent appointed with due care.

 

(d)   The Trustee will not be liable for
any action it takes or omits to take in good faith that it believes to be
authorized or within the rights or powers conferred upon it by this Indenture.

 

(e)   Unless otherwise specifically
provided in this Indenture, any demand, request, direction or notice from the
Company will be sufficient if signed by an Officer of the Company.

 

(f)    The Trustee will be under no
obligation to exercise any of the rights or powers vested in it by this
Indenture at the request or direction of any of the Holders unless such Holders
have offered to the Trustee reasonable indemnity or security satisfactory to it
against the losses, liabilities and expenses that might be incurred by it in
compliance with such request or direction.

 

(g)   In no event shall the Trustee be
responsible or liable for special, indirect, or consequential loss or damage of
any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such
loss or damage and regardless of the form of action;

 

(h)   The Trustee shall not be deemed to
have notice of any Default or Event of Default unless a Responsible Officer of
the Trustee has actual knowledge thereof or unless written notice of any event
which is in fact such a default is received by the Trustee at the Corporate
Trust Office of the Trustee, and such notice references the Securities and this
Indenture.

 

(i)    The rights, privileges, protections,
immunities and benefits given to the Trustee, including, without limitation,
its right to be indemnified, are extended to, and shall be enforceable by, the
Trustee in each of its capacities hereunder, and each agent, custodian and
other Person employed to act hereunder.

 

60

 

Section 7.03           Individual Rights
of Trustee.

 

The Trustee in its
individual or any other capacity may become the owner or pledgee of Notes and
may otherwise deal with the Company or any Affiliate of the Company with the
same rights it would have if it were not Trustee.  However, in the event that the Trustee acquires any conflicting
interest it must eliminate such conflict within 90 days, apply to the SEC for
permission to continue as trustee (if this Indenture has been qualified under
the TIA) or resign.  Any Agent may do
the same with like rights and duties. 
The Trustee is also subject to Sections 7.10 and 7.11 hereof.

 

Section 7.04           Trustee’s
Disclaimer.

 

The Trustee will not be
responsible for and makes no representation as to the validity or adequacy of
this Indenture or the Notes, it shall not be accountable for the Company’s use
of the proceeds from the Notes or any money paid to the Company or upon the
Company’s direction under any provision of this Indenture, it will not be
responsible for the use or application of any money received by any Paying
Agent other than the Trustee, and it will not be responsible for any statement
or recital herein or any statement in the Notes or any other document in
connection with the sale of the Notes or pursuant to this Indenture other than
its certificate of authentication.

 

Section 7.05           Notice of Defaults.

 

If a Default or Event of
Default occurs and is continuing and if it is known to the Trustee, the Trustee
will mail to Holders of Notes a notice of the Default or Event of Default
within 90 days after it occurs.  Except
in the case of a Default or Event of Default in payment of principal of,
premium or interest on, any Note, the Trustee may withhold the notice if and so
long as a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interests of the Holders of the Notes.

 

Section 7.06           Reports by Trustee
to Holders of the Notes.

 

(a)   Within 60 days after each May 15
beginning with the May 15 following the date of this Indenture, and for so long
as Notes remain outstanding, the Trustee will mail to the Holders of the Notes
a brief report dated as of such reporting date that complies with TIA
§ 313(a) (but if no event described in TIA § 313(a) has occurred
within the twelve months preceding the reporting date, no report need be
transmitted).  The Trustee also will
comply with TIA § 313(b)(2).  The
Trustee will also transmit by mail all reports as required by TIA
§ 313(c).

 

(b)   A copy of each report at the time of
its mailing to the Holders of Notes will be mailed by the Trustee to the
Company and filed by the Trustee with the SEC and each stock exchange on which
the Notes are listed in accordance with TIA § 313(d).  The Company will promptly notify the Trustee
when the Notes are listed on any stock exchange.

 

Section 7.07           Compensation and
Indemnity.

 

(a)   The Company will pay to the Trustee
from time to time reasonable compensation for its acceptance of this Indenture
and services hereunder as the parties shall agree in writing from time to
time.  The Trustee’s compensation will
not be limited by any law on compensation of a trustee of an express
trust.  The Company will reimburse the
Trustee promptly upon request for all reasonable disbursements, advances and
expenses incurred or made by it in addition to the compensation for its
services.  Such expenses will include
the reasonable compensation, disbursements and expenses of the Trustee’s agents
and counsel.

 

61

 

(b)   The Company and the Guarantors will
indemnify the Trustee against any and all losses, liabilities, claims, damages
or expenses incurred by it arising out of or in connection with the acceptance
or administration of its duties under this Indenture, including the costs and
expenses of enforcing this Indenture against the Company and the Guarantors
(including this Section 7.07) and defending itself against any claim (whether
asserted by the Company, the Guarantors, any Holder or any other Person) or
liability in connection with the exercise or performance of any of its powers
or duties hereunder, except to the extent any such loss, liability or expense
may be attributable to its negligence or bad faith.  The Trustee will notify the Company promptly of any claim for
which it may seek indemnity.  Failure by
the Trustee to so notify the Company will not relieve the Company or any of the
Guarantors of their obligations hereunder. 
The Company or such Guarantor will defend the claim and the Trustee will
cooperate in the defense.  The Trustee
may have separate counsel and the Company will pay the reasonable fees and
expenses of such counsel.  Neither the
Company nor any Guarantor need pay for any settlement made without its consent,
which consent will not be unreasonably withheld.

 

(c)   The obligations of the Company and
the Guarantors under this Section 7.07 will survive the satisfaction and
discharge of this Indenture.

 

(d)   To secure the Company’s and the
Guarantors’ payment obligations in this Section 7.07, the Trustee will have a
Lien prior to the Notes on all money or property held or collected by the
Trustee, except that held in trust to pay principal and interest on particular
Notes.  Such Lien will survive the
satisfaction and discharge of this Indenture.

 

(e)   When the Trustee incurs expenses or
renders services after an Event of Default specified in Section 6.01(8) or (9)
hereof occurs, the expenses and the compensation for the services (including
the fees and expenses of its agents and counsel) are intended to constitute
expenses of administration under any Bankruptcy Law.

 

(f)    The Trustee will comply with the
provisions of TIA § 313(b)(2) to the extent applicable.

 

Section 7.08           Replacement of
Trustee.

 

(a)   A resignation or removal of the
Trustee and appointment of a successor Trustee will become effective only upon
the successor Trustee’s acceptance of appointment as provided in this Section
7.08.

 

(b)   The Trustee may resign in writing at
any time and be discharged from the trust hereby created by so notifying the
Company.  The Holders of a majority in
aggregate principal amount of the then outstanding Notes may remove the Trustee
by so notifying the Trustee and the Company in writing.  The Company may remove the Trustee if:

 

(1) the Trustee fails to comply with
Section 7.10 hereof;

 

(2) the Trustee is adjudged a
bankrupt or an insolvent or an order for relief is entered with respect to the
Trustee under any Bankruptcy Law;

 

(3) a custodian or public officer
takes charge of the Trustee or its property; or

 

(4) the Trustee becomes incapable of
acting.

 

(c)   If the Trustee resigns or is removed
or if a vacancy exists in the office of Trustee for any reason, the Company
will promptly appoint a successor Trustee. 
Within one year after the successor

 

62

 

Trustee
takes office, the Holders of a majority in aggregate principal amount of the
then outstanding Notes may appoint a successor Trustee to replace the successor
Trustee appointed by the Company.

 

(d)   If a successor Trustee does not take
office within 60 days after the retiring Trustee resigns or is removed, the
retiring Trustee, the Company, or the Holders of at least 10% in aggregate
principal amount of the then outstanding Notes may petition at the expense of
the Company any court of competent jurisdiction for the appointment of a
successor Trustee.

 

(e)   If the Trustee, after written
request by any Holder who has been a Holder for at least six months, fails to
comply with Section 7.10 hereof, such Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee.

 

(f)    A successor Trustee will deliver a
written acceptance of its appointment to the retiring Trustee and to the
Company.  Thereupon, the resignation or
removal of the retiring Trustee will become effective, and the successor
Trustee will have all the rights, powers and duties of the Trustee under this
Indenture.  The successor Trustee will
mail a notice of its succession to Holders. 
The retiring Trustee will promptly transfer all property held by it as
Trustee to the successor Trustee; provided all sums owing to the Trustee
hereunder have been paid and subject to the Lien provided for in Section 7.07
hereof.  Notwithstanding replacement of
the Trustee pursuant to this Section 7.08, the Company’s obligations under
Section 7.07 hereof will continue for the benefit of the retiring Trustee.

 

Section 7.09           Successor Trustee
by Merger, etc.

 

If the Trustee
consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust business to, another corporation, the successor corporation
without any further act will be the successor Trustee.

 

Section 7.10           Eligibility;
Disqualification.

 

There will at all times
be a Trustee hereunder that is a corporation organized and doing business under
the laws of the United States of America or of any state thereof that is
authorized under such laws to exercise corporate trustee power, that is subject
to supervision or examination by federal or state authorities and that has a
combined capital and surplus of at least $100.0 million as set forth in its
most recent published annual report of condition.

 

This Indenture will
always have a Trustee who satisfies the requirements of TIA § 310(a)(1),
(2) and (5).  The Trustee is subject to
TIA § 310(b).

 

Section 7.11           Preferential
Collection of Claims Against Company.

 

The Trustee is subject to
TIA § 311(a), excluding any creditor relationship listed in TIA
§ 311(b).  A Trustee who has
resigned or been removed shall be subject to TIA § 311(a) to the extent
indicated therein.

 

63

 

ARTICLE 8

LEGAL DEFEASANCE AND COVENANT
DEFEASANCE

 

Section 8.01           Option to Effect
Legal Defeasance or Covenant Defeasance.

 

The Company may at any
time, at the option of its Board of Directors evidenced by a resolution set
forth in an Officers’ Certificate, elect to have either Section 8.02 or 8.03
hereof be applied to all outstanding Notes upon compliance with the conditions
set forth below in this Article 8.

 

Section 8.02           Legal Defeasance
and Discharge.

 

Upon the Company’s
exercise under Section 8.01 hereof of the option applicable to this Section
8.02, the Company and each of the Guarantors will, subject to the satisfaction
of the conditions set forth in Section 8.04 hereof, be deemed to have been
discharged from their obligations with respect to all outstanding Notes
(including the Note Guarantees) on the date the conditions set forth below are
satisfied (hereinafter, “Legal Defeasance”).  For this purpose, Legal Defeasance means
that the Company and the Guarantors will be deemed to have paid and discharged
the entire Indebtedness represented by the outstanding Notes (including the
Note Guarantees), which will thereafter be deemed to be “outstanding” only for
the purposes of Section 8.05 hereof and the other Sections of this Indenture
referred to in clauses (1) and (2) below, and to have satisfied all their other
obligations under such Notes, the Note Guarantees and this Indenture (and the
Trustee, on demand of and at the expense of the Company, shall execute proper
instruments acknowledging the same), except for the following provisions which
will survive until otherwise terminated or discharged hereunder:

 

(1) the rights of Holders of
outstanding Notes to receive payments in respect of the principal of, or
interest or premium on, such Notes when such payments are due from the trust
referred to in Section 8.04 hereof;

 

(2) the Company’s obligations with
respect to such Notes under Article 2 and Section 4.02 hereof;

 

(3) the rights, powers, trusts,
duties and immunities of the Trustee hereunder and the Company’s and the
Guarantors’ obligations in connection therewith; and

 

(4) this Article 8.

 

Subject to compliance
with this Article 8, the Company may exercise its option under this Section
8.02 notwithstanding the prior exercise of its option under Section 8.03
hereof.

 

Section 8.03           Covenant
Defeasance.

 

Upon the Company’s
exercise under Section 8.01 hereof of the option applicable to this Section
8.03, the Company and each of the Guarantors will, subject to the satisfaction
of the conditions set forth in Section 8.04 hereof, be released from each of
their obligations under the covenants contained in Sections 4.07, 4.08, 4.09,
4.10, 4.11, 4.12, 4.13, 4.15, 4.16, 4.17, 4.18, 4.19 and 4.20 hereof and clause
(4) of Section 5.01 hereof with respect to the outstanding Notes on and after
the date the conditions set forth in Section 8.04 hereof are satisfied
(hereinafter, “Covenant Defeasance”), and the Notes will thereafter be
deemed not “outstanding” for the purposes of any direction, waiver, consent or
declaration or act of Holders (and the consequences of any thereof) in
connection with such covenants, but will continue to be deemed “outstanding”
for all other purposes hereunder (it being understood that such Notes will not
be deemed outstanding for accounting purposes).  For this purpose, Covenant Defeasance means that, with

 

64

 

respect to the
outstanding Notes and Note Guarantees, the Company and the Guarantors may omit
to comply with and will have no liability in respect of any term, condition or
limitation set forth in any such covenant, whether directly or indirectly, by
reason of any reference elsewhere herein to any such covenant or by reason of
any reference in any such covenant to any other provision herein or in any
other document and such omission to comply will not constitute a Default or an
Event of Default under Section 6.01 hereof, but, except as specified above, the
remainder of this Indenture and such Notes and Note Guarantees will be
unaffected thereby.  In addition, upon
the Company’s exercise under Section 8.01 hereof of the option applicable to
this Section 8.03, subject to the satisfaction of the conditions set forth in
Section 8.04 hereof, Sections 6.01(3) through 6.01(6) hereof will not
constitute Events of Default.

 

Section 8.04           Conditions to Legal
or Covenant Defeasance.

 

In order to exercise
either Legal Defeasance or Covenant Defeasance under either Section 8.02 or
8.03 hereof:

 

(1) the Company must irrevocably
deposit with the Trustee, in trust, for the benefit of the Holders, cash in
U.S. dollars, non-callable Government Securities, or a combination thereof, in
such amounts as will be sufficient, in the opinion of a nationally recognized
investment bank, appraisal firm, or independent registered public accounting
firm, to pay the principal of, premium and interest on, the outstanding Notes
on the stated date for payment thereof or on the applicable redemption date, as
the case may be, and the Company must specify whether the Notes are being
defeased to such stated date for payment or to a particular redemption date;

 

(2) in the case of an election under
Section 8.02 hereof, the Company must deliver to the Trustee an Opinion of
Counsel confirming that:

 

(A) the Company has received from, or
there has been published by, the Internal Revenue Service a ruling; or

 

(B) since the date of this Indenture,
there has been a change in the applicable federal income tax law,

 

in either case to the effect that, and based thereon
such Opinion of Counsel shall confirm that, the Holders of the outstanding
Notes will not recognize income, gain or loss for federal income tax purposes
as a result of such Legal Defeasance and will be subject to federal income tax
on the same amounts, in the same manner and at the same times as would have
been the case if such Legal Defeasance had not occurred;

 

(3) in the case of an election under
Section 8.03 hereof, the Company must deliver to the Trustee an Opinion of Counsel
confirming that the Holders of the outstanding Notes will not recognize income,
gain or loss for federal income tax purposes as a result of such Covenant
Defeasance and will be subject to federal income tax on the same amounts, in
the same manner and at the same times as would have been the case if such
Covenant Defeasance had not occurred;

 

(4) no Default or Event of Default
shall have occurred and be continuing on the date of such deposit (other than a
Default or Event of Default resulting from the borrowing of funds to be applied
to such deposit) and the deposit will not result in a breach or violation of,
or constitute a default under, any other instrument to which the Company or any
Guarantor is a party or by which the Company or any Guarantor is bound;

 

65

 

(5) such Legal Defeasance or Covenant
Defeasance will not result in a breach or violation of, or constitute a default
under, any material agreement or instrument (other than this Indenture) to
which the Company or any of its Subsidiaries is a party or by which the Company
or any of its Subsidiaries is bound;

 

(6) the Company must deliver to the
Trustee an Officers’ Certificate stating that the deposit was not made by the
Company with the intent of preferring the Holders of Notes over the other
creditors of the Company with the intent of defeating, hindering, delaying or
defrauding any creditors of the Company or others; and

 

(7) the Company must deliver to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
all conditions precedent relating to the Legal Defeasance or the Covenant
Defeasance have been complied with.

 

Section 8.05           Deposited Money and
Government Securities to be Held in Trust; Other Miscellaneous Provisions.

 

Subject to Section 8.06
hereof, all money and non-callable Government Securities (including the
proceeds thereof) deposited with the Trustee (or other qualifying trustee,
collectively for purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04 hereof in respect of the
outstanding Notes will be held in trust and applied by the Trustee, in
accordance with the provisions of such Notes and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company
acting as Paying Agent) as the Trustee may determine, to the Holders of such
Notes of all sums due and to become due thereon in respect of principal,
premium and interest, but such money need not be segregated from other funds
except to the extent required by law.

 

The Company will pay and
indemnify the Trustee against any tax, fee or other charge imposed on or
assessed against the cash or non-callable Government Securities deposited
pursuant to Section 8.04 hereof or the principal and interest received in
respect thereof other than any such tax, fee or other charge which by law is
for the account of the Holders of the outstanding Notes.

 

Notwithstanding anything
in this Article 8 to the contrary, the Trustee will deliver or pay to the
Company from time to time upon the request of the Company any money or
non-callable Government Securities held by it as provided in Section 8.04
hereof which, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to
the Trustee (which may be the opinion delivered under Section 8.04(1) hereof),
are in excess of the amount thereof that would then be required to be deposited
to effect an equivalent Legal Defeasance or Covenant Defeasance.

 

Section 8.06           Repayment to
Company.

 

Any money deposited with
the Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of, premium, if any, or interest on, any Note and
remaining unclaimed for two years after such principal, premium or interest has
become due and payable shall be paid to the Company on its request or (if then
held by the Company) will be discharged from such trust; and the Holder of such
Note will thereafter be permitted to look only to the Company for payment thereof,
and all liability of the Trustee or such Paying Agent with respect to such
trust money, and all liability of the Company as trustee thereof, will
thereupon cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the expense of the
Company cause to be published once, in the New York Times and The Wall Street
Journal (national edition), notice that such money remains unclaimed and that,
after a date specified therein, which will not

 

66

 

be less than 30 days from
the date of such notification or publication, any unclaimed balance of such
money then remaining will be repaid to the Company.

 

Section 8.07           Reinstatement.

 

If the Trustee or Paying
Agent is unable to apply any U.S. dollars or non-callable Government Securities
in accordance with Section 8.02 or 8.03 hereof, as the case may be, by reason
of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, then the Company’s and
the Guarantors’ obligations under this Indenture and the Notes and the Note
Guarantees will be revived and reinstated as though no deposit had occurred
pursuant to Section 8.02 or 8.03 hereof until such time as the Trustee or
Paying Agent is permitted to apply all such money in accordance with Section
8.02 or 8.03 hereof, as the case may be; provided, however, that, if the Company
makes any payment of principal of, premium, if any, or interest on, any Note
following the reinstatement of its obligations, the Company will be subrogated
to the rights of the Holders of such Notes to receive such payment from the
money held by the Trustee or Paying Agent.

 

ARTICLE 9

AMENDMENT, SUPPLEMENT AND WAIVER

 

Section 9.01           Without Consent of
Holders of Notes.

 

Notwithstanding Section
9.02 of this Indenture, the Company, the Guarantors and the Trustee may amend
or supplement this Indenture or the Notes or the Note Guarantees without the
consent of any Holder of Note:

 

(1) to cure any ambiguity, defect or
inconsistency;

 

(2) to provide for uncertificated
Notes in addition to or in place of certificated Notes;

 

(3) to provide for the assumption of
the Company’s or a Guarantor’s obligations to the Holders of the Notes and Note
Guarantees by a successor to the Company or such Guarantor] pursuant to Article
5 hereof;

 

(4) to make any change that would
provide any additional rights or benefits to the Holders of the Notes or that
does not adversely affect the legal rights hereunder of any Holder;

 

(5) to comply with requirements of
the SEC in order to effect or maintain the qualification of this Indenture
under the TIA;

 

(6) to conform the text of this
Indenture, the Note Guarantees or the Notes to any provision of the “Description
of Notes” section of the Company’s prospectus dated October 8, 2004, relating
to the initial offering of the Notes, to the extent that such provision in that
“Description of Notes” was intended to be a verbatim recitation of a provision
of this Indenture, the Note Guarantees or the Notes;

 

(7) to provide for the issuance of
Additional Notes in accordance with the limitations set forth in this
Indenture;

 

(8) to comply with the provisions of
DTC or the Trustee with respect to the provisions of this Indenture and the
Notes relating to transfers and exchanges of Notes or beneficial in the Notes;
or

 

67

 

(9) to evidence the release of any
Guarantor permitted to be released under the terms of this Indenture or to allow
any Guarantor to execute a supplemental indenture and/or a Note Guarantee with
respect to the Notes.

 

Upon the request of the
Company accompanied by a resolution of its Board of Directors authorizing the
execution of any such amended or supplemental indenture, and upon receipt by
the Trustee of the documents described in Section 7.02 hereof, the Trustee will
join with the Company and the Guarantors in the execution of any amended or
supplemental indenture authorized or permitted by the terms of this Indenture
and to make any further appropriate agreements and stipulations that may be
therein contained, but the Trustee will not be obligated to enter into such
amended or supplemental indenture that affects its own rights, duties or
immunities under this Indenture or otherwise.

 

Section 9.02           With Consent of
Holders of Notes.

 

Except as provided below
in this Section 9.02, the Company and the Trustee may amend or supplement this
Indenture (including, without limitation, Section 3.09, 4.10 and 4.15 hereof) and
the Notes and the Note Guarantees with the consent of the Holders of at least a
majority in aggregate principal amount of the then outstanding Notes
(including, without limitation, Additional Notes, if any) voting as a single
class (including, without limitation, consents obtained in connection with a
tender offer or exchange offer for, or purchase of, the Notes), and, subject to
Sections 6.04 and 6.07 hereof, any existing Default or Event of Default (other
than a Default or Event of Default in the payment of the principal of, premium
or interest on, the Notes, except a payment default resulting from an
acceleration that has been rescinded) or compliance with any provision of this
Indenture or the Notes or the Note Guarantees may be waived with the consent of
the Holders of a majority in aggregate principal amount of the then outstanding
Notes (including, without limitation, Additional Notes, if any) voting as a
single class (including, without limitation, consents obtained in connection
with a tender offer or exchange offer for, or purchase of, the Notes). 
Section 2.08 hereof shall determine which Notes are
considered to be “outstanding” for purposes of this Section 9.02.

 

Upon the request of the
Company accompanied by a resolution of its Board of Directors authorizing the
execution of any such amended or supplemental indenture, and upon the filing
with the Trustee of evidence satisfactory to the Trustee of the consent of the
Holders of Notes as aforesaid, and upon receipt by the Trustee of the documents
described in Section 7.02 hereof, the Trustee will join with the Company and
the Guarantors in the execution of such amended or supplemental indenture
unless such amended or supplemental indenture directly affects the Trustee’s
own rights, duties or immunities under this Indenture or otherwise, in which
case the Trustee may in its discretion, but will not be obligated to, enter
into such amended or supplemental Indenture.

 

It is not be necessary
for the consent of the Holders of Notes under this Section 9.02 to approve the
particular form of any proposed amendment, supplement or waiver, but it is
sufficient if such consent approves the substance thereof.

 

After an amendment,
supplement or waiver under this Section 9.02 becomes effective, the Company
will mail to the Holders of Notes affected thereby a notice briefly describing
the amendment, supplement or waiver. 
Any failure of the Company to mail such notice, or any defect therein,
will not, however, in any way impair or affect the validity of any such amended
or supplemental indenture or waiver. 
Subject to Sections 6.04 and 6.07 hereof, the Holders of a majority in
aggregate principal amount of the Notes then outstanding voting as a single
class may waive compliance in a particular instance by the Company with any
provision of this Indenture or the Notes or the Note Guarantees.  However, without the consent of each Holder
affected, an amendment, supplement or waiver under this Section 9.02 may not
(with respect to any Notes held by a non-consenting Holder):

 

68

 

(1) reduce the principal amount of
Notes whose Holders must consent to an amendment, supplement or waiver;

 

(2) reduce the principal of or change
the fixed maturity of any Note or alter or waive any of the provisions with
respect to the redemption of the Notes (except as provided above with respect
to Sections 3.09, 4.10 and 4.15 hereof);

 

(3) reduce the rate of or change the
time for payment of interest, including default interest, on any Note;

 

(4) waive a Default or Event of
Default in the payment of principal of, or premium, if any, or interest on, the
Notes (except a rescission of acceleration of the Notes by the Holders of at
least a majority in aggregate principal amount of the then outstanding Notes
and a waiver of the payment default that resulted from such acceleration);

 

(5) make any Note payable in money
other than that stated in the Notes;

 

(6) make any change in the provisions
of this Indenture relating to waivers of past Defaults or the rights of Holders
of Notes to receive payments of principal of, or interest or premium on, the
Notes;

 

(7) waive a redemption payment with
respect to any Note (other than a payment required by Sections 3.09, 4.10 or
4.15 hereof);

 

(8) amend the covenant described in
Section 4.07 in any way that would permit the Company to take any action
described in second clauses (1) or (2) of the first paragraph of such covenant
when it would not have otherwise been permitted to take such action under the
terms of such covenant as in effect on the date of the indenture;

 

(9) release any Guarantor from any of
its obligations under its Note Guarantee or this Indenture, except in
accordance with the terms of this Indenture; or

 

(10) make any change in the preceding
amendment, supplement and waiver provisions that requires each holder’s
consent.

 

Section 9.03           Compliance with
Trust Indenture Act.

 

Every amendment or
supplement to this Indenture or the Notes will be set forth in a amended or
supplemental indenture that complies with the TIA as then in effect.

 

Section 9.04           Revocation and
Effect of Consents.

 

Until an amendment,
supplement or waiver becomes effective, a consent to it by a Holder of a Note
is a continuing consent by the Holder of a Note and every subsequent Holder of
a Note or portion of a Note that evidences the same debt as the consenting
Holder’s Note, even if notation of the consent is not made on any Note.  However, any such Holder of a Note or
subsequent Holder of a Note may revoke the consent as to its Note if the
Trustee receives written notice of revocation before the date the amendment,
supplement or waiver becomes effective. 
An amendment, supplement or waiver becomes effective in accordance with
its terms and thereafter binds every Holder.

 

69

 

Section 9.05           Notation on or
Exchange of Notes.

 

The Trustee may place an
appropriate notation about an amendment, supplement or waiver on any Note
thereafter authenticated.  The Company
in exchange for all Notes may issue and the Trustee shall, upon receipt of an
Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

 

Failure to make the
appropriate notation or issue a new Note will not affect the validity and
effect of such amendment, supplement or waiver.

 

Section 9.06           Trustee to Sign
Amendments, etc.

 

The Trustee will sign any
amended or supplemental indenture authorized pursuant to this Article 9 if the
amendment or supplement does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. 
The Company may not sign an amended or supplemental indenture until the
Board of Directors of the Company approves it. 
In executing any amended or supplemental indenture, the Trustee will be
entitled to receive and (subject to Section 7.01 hereof) will be fully
protected in relying upon, in addition to the documents required by Section
12.04 hereof, an Officers’ Certificate and an Opinion of Counsel stating that
the execution of such amended or supplemental indenture is authorized or
permitted by this Indenture.

 

ARTICLE 10

NOTE GUARANTEES

 

Section 10.01         Guarantee.

 

(a)   Subject to this Article 10, each of
the Guarantors hereby, jointly and severally, unconditionally guarantees to
each Holder of a Note authenticated and delivered by the Trustee and to the
Trustee and its successors and assigns, irrespective of the validity and
enforceability of this Indenture, the Notes or the obligations of the Company
hereunder or thereunder, that:

 

(1) 
the principal of, premium, if any, and interest on, the Notes will be
promptly paid in full when due, whether at maturity, by acceleration,
redemption or otherwise, and interest on the overdue principal of and interest
on the Notes, if any, if lawful, and all other obligations of the Company to
the Holders or the Trustee hereunder or thereunder will be promptly paid in
full or performed, all in accordance with the terms hereof and thereof; and

 

(2) in case of any extension of time
of payment or renewal of any Notes or any of such other obligations, that same
will be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal, whether at stated maturity, by acceleration
or otherwise.

 

Failing payment when due
of any amount so guaranteed or any performance so guaranteed for whatever
reason, the Guarantors will be jointly and severally obligated to pay the same
immediately.  Each Guarantor agrees that
this is a guarantee of payment and not a guarantee of collection.

 

(b)   The Guarantors hereby agree that
their obligations hereunder are unconditional, irrespective of the validity,
regularity or enforceability of the Notes or this Indenture, the absence of any
action to enforce the same, any waiver or consent by any Holder of the Notes
with respect to any provisions hereof or thereof, the recovery of any judgment
against the Company, any action to enforce the same or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a

 

70

 

guarantor.  Each Guarantor hereby waives diligence,
presentment, demand of payment, filing of claims with a court in the event of
insolvency or bankruptcy of the Company, any right to require a proceeding
first against the Company, protest, notice and all demands whatsoever and
covenant that this Note Guarantee will not be discharged except by complete
performance of the obligations contained in the Notes and this Indenture.

 

(c)   If any Holder or the Trustee is
required by any court or otherwise to return to the Company, the Guarantors or
any custodian, trustee, liquidator or other similar official acting in relation
to either the Company or the Guarantors, any amount paid by either to the
Trustee or such Holder, this Note Guarantee, to the extent theretofore
discharged, will be reinstated in full force and effect.

 

(d)   Each Guarantor agrees that it will
not be entitled to any right of subrogation in relation to the Holders in
respect of any obligations guaranteed hereby until payment in full of all obligations
guaranteed hereby.  Each Guarantor
further agrees that, as between the Guarantors, on the one hand, and the
Holders and the Trustee, on the other hand, (1) the maturity of the obligations
guaranteed hereby may be accelerated as provided in Article 6 hereof for the
purposes of this Note Guarantee, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (2) in the event of any declaration of acceleration of
such obligations as provided in Article 6 hereof, such obligations (whether or
not due and payable) will forthwith become due and payable by the Guarantors
for the purpose of this Note Guarantee. 
The Guarantors will have the right to seek contribution from any non-paying
Guarantor so long as the exercise of such right does not impair the rights of
the Holders under the Note Guarantee.

 

Section 10.02         Limitation on Guarantor Liability.

 

Each Guarantor, and by
its acceptance of Notes, each Holder, hereby confirms that it is the intention
of all such parties that the Note Guarantee of such Guarantor not constitute a
fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar
federal or state law to the extent applicable to any Note Guarantee.  To effectuate the foregoing intention, the
Trustee, the Holders and the Guarantors hereby irrevocably agree that the
obligations of such Guarantor will be limited to the maximum amount that will,
after giving effect to such maximum amount and all other contingent and fixed
liabilities of such Guarantor that are relevant under such laws, and after
giving effect to any collections from, rights to receive contribution from or
payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under this Article 10, result in the
obligations of such Guarantor under its Note Guarantee not constituting a
fraudulent transfer or conveyance.

 

Section 10.03         Execution and Delivery of Note
Guarantee.

 

To evidence its Note
Guarantee set forth in Section 10.01 hereof, each Guarantor hereby agrees that
a notation of such Note Guarantee substantially in the form attached as Exhibit
E hereto will be endorsed by an Officer of such Guarantor on each Note
authenticated and delivered by the Trustee and that this Indenture will be
executed on behalf of such Guarantor by one of its Officers.

 

Each Guarantor hereby
agrees that its Note Guarantee set forth in Section 10.01 hereof will remain in
full force and effect notwithstanding any failure to endorse on each Note a
notation of such Note Guarantee.

 

If an Officer whose
signature is on this Indenture or on the Note Guarantee no longer holds that
office at the time the Trustee authenticates the Note on which a Note Guarantee
is endorsed, the Note Guarantee will be valid nevertheless.

 

71

 

The delivery of any Note
by the Trustee, after the authentication thereof hereunder, will constitute due
delivery of the Note Guarantee set forth in this Indenture on behalf of the
Guarantors.

 

In the event that the
Company or any of its Restricted Subsidiaries creates or acquires any Domestic
Subsidiary after the date of this Indenture, if required by Section 4.24
hereof, the Company will cause such Domestic Subsidiary to comply with the
provisions of Section 4.24 hereof and this Article 10, to the extent
applicable.

 

Section 10.04         Guarantors May Consolidate, etc., on
Certain Terms.

 

Except as otherwise
provided in Section 10.05 hereof, no Guarantor may sell or otherwise dispose of
all or substantially all of its assets to, or consolidate with or merge with or
into (whether or not such Guarantor is the surviving Person) another Person,
other than the Company or another Guarantor, unless:

 

(1) immediately after giving effect
to such transaction, no Default or Event of Default exists; and

 

(2) either:

 

(a) subject to Section 10.05 hereof,
the Person acquiring the property in any such sale or disposition or the Person
formed by or surviving any such consolidation or merger unconditionally assumes
all the obligations of that Guarantor under this Indenture, its Note Guarantee
on the terms set forth herein or therein, pursuant to a supplemental indenture
in form and substance reasonably satisfactory to the Trustee; or

 

(b) the Net Proceeds of such sale or
other disposition are applied in accordance with the applicable provisions of
this Indenture, including without limitation, Section 4.10 hereof.

 

In case of any such
consolidation, merger, sale or conveyance and upon the assumption by the
successor Person, by supplemental indenture, executed and delivered to the
Trustee and satisfactory in form to the Trustee, of the Note Guarantee endorsed
upon the Notes and the due and punctual performance of all of the covenants and
conditions of this Indenture to be performed by the Guarantor, such successor
Person will succeed to and be substituted for the Guarantor with the same
effect as if it had been named herein as a Guarantor.  Such successor Person thereupon may cause to be signed any or all
of the Note Guarantees to be endorsed upon all of the Notes issuable hereunder
which theretofore shall not have been signed by the Company and delivered to
the Trustee.  All the Note Guarantees so
issued will in all respects have the same legal rank and benefit under this
Indenture as the Note Guarantees theretofore and thereafter issued in
accordance with the terms of this Indenture as though all of such Note
Guarantees had been issued at the date of the execution hereof.

 

Except as set forth in
Articles 4 and 5 hereof, and notwithstanding clauses 2(a) and (b) above,
nothing contained in this Indenture or in any of the Notes will prevent any
consolidation or merger of a Guarantor with or into the Company or another
Guarantor, or will prevent any sale or conveyance of the property of a
Guarantor as an entirety or substantially as an entirety to the Company or
another Guarantor.

 

Section 10.05         Releases.

 

(a)   In the event of any sale or other
disposition of all or substantially all of the assets of any Guarantor, by way
of merger, consolidation or otherwise, or a sale or other disposition of all of
the Capital Stock of any Guarantor, in each case to a Person that is not
(either before or after giving effect to such transactions) the Company or a
Restricted Subsidiary of the Company, then such Guarantor (in the

 

72

 

event of a sale or other disposition,
by way of merger, consolidation or otherwise, of all of the Capital Stock of
such Guarantor) or the corporation acquiring the property (in the event of a
sale or other disposition of all or substantially all of the assets of such
Guarantor) will be released and relieved of any obligations under its Note
Guarantee; provided
that the Net Proceeds of such sale or other disposition are applied in
accordance with the applicable provisions of this Indenture, including without
limitation Section 4.10 hereof.  Upon
delivery by the Company to the Trustee of an Officers’ Certificate and an
Opinion of Counsel to the effect that such sale or other disposition was made
by the Company in accordance with the provisions of this Indenture, including
without limitation Section 4.10 hereof, the Trustee will execute any documents
reasonably required in order to evidence the release of any Guarantor from its
obligations under its Note Guarantee.

 

(b)   Upon designation of any Guarantor as
an Unrestricted Subsidiary in accordance with the terms of this Indenture, such
Guarantor will be released and relieved of any obligations under its Note
Guarantee.

 

(c)   Upon Legal Defeasance in accordance
with Article 8 hereof or satisfaction and discharge of this Indenture in
accordance with Article 11 hereof, each Guarantor will be released and relieved
of any obligations under its Note Guarantee.

 

(d)   If such Guarantor no longer
constitutes a Domestic Subsidiary.

 

Any Guarantor not
released from its obligations under its Note Guarantee as provided in this
Section 10.05 will remain liable for the full amount of principal of and
interest and premium on the Notes and for the other obligations of any
Guarantor under this Indenture as provided in this Article 10.

 

ARTICLE 11

SATISFACTION AND DISCHARGE

 

Section 11.01         Satisfaction and Discharge.

 

This Indenture will be
discharged and will cease to be of further effect as to all Notes issued
hereunder, when:

 

(1) either:

 

(a) all Notes that have been
authenticated, except lost, stolen or destroyed Notes that have been replaced
or paid and Notes for whose payment money has theretofore been deposited in
trust and thereafter repaid to the Company, have been delivered to the Trustee
for cancellation; or

 

(b) all Notes that have not been
delivered to the Trustee for cancellation have become due and payable by reason
of the mailing of a notice of redemption or otherwise or will become due and
payable within one year and the Company or any Guarantor has irrevocably
deposited or caused to be deposited with the Trustee as trust funds in trust
solely for the benefit of the Holders, cash in U.S. dollars, non-callable
Government Securities, or a combination thereof, in such amounts as will be
sufficient, without consideration of any reinvestment of interest, to pay and
discharge the entire Indebtedness on the Notes not delivered to the Trustee for
cancellation for principal, premium, if any, and accrued interest to the date
of maturity or redemption;

 

(2) no Default or Event of Default
has occurred and is continuing on the date of such deposit (other than a
Default or Event of Default resulting from the borrowing of funds to be

 

73

 

applied to such deposit) and the deposit will not result in a
breach or violation of, or constitute a default under, any other material
instrument to which the Company or any Guarantor is a party or by which the
Company or any Guarantor is bound;

 

(3) the Company or any Guarantor has
paid or caused to be paid all sums payable by it under this Indenture; and

 

(4) the Company has delivered
irrevocable instructions to the Trustee under this Indenture to apply the
deposited money toward the payment of the Notes at maturity or on the
redemption date, as the case may be.

 

In addition, the Company
must deliver an Officers’ Certificate and an Opinion of Counsel to the Trustee
stating that all conditions precedent to satisfaction and discharge have been
satisfied.

 

Notwithstanding the
satisfaction and discharge of this Indenture, if money has been deposited with
the Trustee pursuant to subclause (b) of clause (1) of this Section 11.01, the
provisions of Sections 11.02 and 8.06 hereof will survive.  In addition, nothing in this Section 11.01
will be deemed to discharge those provisions of Section 7.07 hereof, that, by
their terms, survive the satisfaction and discharge of this Indenture.

 

Section 11.02         Application of Trust Money.

 

Subject to the provisions
of Section 8.06 hereof, all money deposited with the Trustee pursuant to
Section 11.01 hereof shall be held in trust and applied by it, in accordance
with the provisions of the Notes and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company acting as its own
Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of
the principal (and premium, if any) and interest for whose payment such money
has been deposited with the Trustee; but such money need not be segregated from
other funds except to the extent required by law.

 

If the Trustee or Paying
Agent is unable to apply any money or Government Securities in accordance with
Section 11.01 hereof by reason of any legal proceeding or by reason of any
order or judgment of any court or governmental authority enjoining, restraining
or otherwise prohibiting such application, the Company’s and any Guarantor’s
obligations under this Indenture and the Notes shall be revived and reinstated
as though no deposit had occurred pursuant to Section 11.01 hereof; provided
that if the Company has made any payment of principal of, premium, if any, or interest
on, any Notes because of the reinstatement of its obligations, the Company
shall be subrogated to the rights of the Holders of such Notes to receive such
payment from the money or Government Securities held by the Trustee or Paying
Agent.

 

ARTICLE 12

MISCELLANEOUS

 

Section 12.01         Trust Indenture Act Controls.

 

If any provision of this
Indenture limits, qualifies or conflicts with the duties imposed by TIA
§318(c), the imposed duties will control.

 

74

 

Section 12.02         Notices.

 

Any notice or
communication by the Company, any Guarantor or the Trustee to the others is
duly given if in writing and delivered in Person or by first class mail
(registered or certified, return receipt requested), facsimile transmission or
overnight air courier guaranteeing next day delivery, to the others’ address:

 

If to the Company and/or any Guarantor:

 

B&G Foods, Inc.

Four Gatehall Drive, Suite 110

Parsippany, NJ  07054

Facsimile No.:  (973) 401-6550

Attention:  Chief Financial Officer

 

With a copy to:

Dechert LLP

4000 Bell Atlantic Tower

1717 Arch Street

Philadelphia, PA  19103

Facsimile No.:  (215) 994-2222

Attention:  Christopher G. Karras, Esq.

 

If to the Trustee:

The Bank of New York

101 Barclay Street, Fl. 8W

New York, NY  10286

Facsimile No.:  (212) 815-5707

Attention:  Corporate Trust
Administration

 

The Company, any
Guarantor or the Trustee, by notice to the others, may designate additional or
different addresses for subsequent notices or communications.

 

All notices and communications
(other than those sent to Holders) will be deemed to have been duly given: at
the time delivered by hand, if personally delivered; five Business Days after
being deposited in the mail, postage prepaid, if mailed; when receipt
acknowledged, if transmitted by facsimile; and the next Business Day after
timely delivery to the courier, if sent by overnight air courier guaranteeing
next day delivery.

 

Any notice or
communication to a Holder will be mailed by first class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing
next day delivery to its address shown on the register kept by the
Registrar.  Any notice or communication
will also be so mailed to any Person described in TIA § 313(c), to the
extent required by the TIA.  Failure to
mail a notice or communication to a Holder or any defect in it will not affect
its sufficiency with respect to other Holders.

 

If a notice or
communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.

 

If the Company mails a
notice or communication to Holders, it will mail a copy to the Trustee and each
Agent at the same time.

 

75

 

Section 12.03         Communication by Holders of Notes
with Other Holders of Notes.

 

Holders may communicate
pursuant to TIA § 312(b) with other Holders with respect to their rights
under this Indenture or the Notes.  The
Company, the Trustee, the Registrar and anyone else shall have the protection
of TIA § 312(c).

 

Section 12.04         Certificate and Opinion as to
Conditions Precedent.

 

Upon any request or
application by the Company to the Trustee to take any action under this
Indenture, the Company shall furnish to the Trustee:

 

(1) an Officers’ Certificate in form
and substance reasonably satisfactory to the Trustee (which must include the
statements set forth in Section 12.05 hereof) stating that, in the opinion of
the signers, all conditions precedent and covenants, if any, provided for in
this Indenture relating to the proposed action have been satisfied; and

 

(2) an Opinion of Counsel in form and
substance reasonably satisfactory to the Trustee (which must include the
statements set forth in Section 12.05 hereof) stating that, in the opinion of
such counsel, all such conditions precedent and covenants have been satisfied.

 

Section 12.05         Statements Required in Certificate or
Opinion.

 

Each certificate or
opinion with respect to compliance with a condition or covenant provided for in
this Indenture (other than a certificate provided pursuant to TIA
§ 314(a)(4)) must comply with the provisions of TIA § 314(e) and must
include:

 

(1) a statement that the Person
making such certificate or opinion has read such covenant or condition;

 

(2) a brief statement as to the
nature and scope of the examination or investigation upon which the statements
or opinions contained in such certificate or opinion are based;

 

(3) a statement that, in the opinion
of such Person, he or she has made such examination or investigation as is
necessary to enable him or her to express an informed opinion as to whether or
not such covenant or condition has been satisfied; and

 

(4) a statement as to whether or not,
in the opinion of such Person, such condition or covenant has been satisfied.

 

Section 12.06         Rules by Trustee and Agents.

 

The Trustee may make
reasonable rules for action by or at a meeting of Holders.  The Registrar or Paying Agent may make
reasonable rules and set reasonable requirements for its functions.

 

Section 12.07         No Personal Liability of Directors,
Officers, Employees and Stockholders.

 

No past, present or
future director, officer, employee, direct or indirect incorporator, Affiliate,
stockholder or controlling Person, of the Company or any Guarantor, as such, or
any successor entity, will have any liability for any obligations of the
Company or the Guarantors under the Notes, this Indenture, the Note Guarantees
or for any claim based on, in respect of, or by reason of, such obligations or
their creation.  Each Holder of Notes by
accepting a Note waives and releases all such liability.  The waiver

 

76

 

and release are part of
the consideration for issuance of the Notes. 
The waiver may not be effective to waive liabilities under the federal
securities laws.

 

Section 12.08         Governing Law.

 

THE INTERNAL LAW OF THE
STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE NOTES
AND THE NOTE GUARANTEES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

 

Section 12.09         No Adverse Interpretation of Other
Agreements.

 

This Indenture may not be
used to interpret any other indenture, loan or debt agreement of the Company or
its Subsidiaries or of any other Person. 
Any such indenture, loan or debt agreement may not be used to interpret
this Indenture.

 

Section 12.10         Successors.

 

All agreements of the
Company in this Indenture and the Notes will bind its successors.  All agreements of the Trustee in this
Indenture will bind its successors.  All
agreements of each Guarantor in this Indenture will bind its successors, except
as otherwise provided in Section 10.05 hereof.

 

Section 12.11         Severability.

 

In case any provision in
this Indenture or in the Notes is invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions will not in
any way be affected or impaired thereby.

 

Section 12.12         Counterpart Originals.

 

The parties may sign any
number of copies of this Indenture. 
Each signed copy will be an original, but all of them together represent
the same agreement.

 

Section 12.13         Table of Contents, Headings, etc.

 

The Table of Contents,
Cross-Reference Table and Headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be
considered a part of this Indenture and will in no way modify or restrict any
of the terms or provisions hereof.

 

Section 12.14         Waiver of Jury Trial.

 

EACH OF THE COMPANY, THE
GUARANTORS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE
TRANSACTION CONTEMPLATED HEREBY.

 

[Signatures on following page]

 

77

 

SIGNATURES

 

 

	
  Dated as of
  October 14, 2004

  	
   

  	
   

  
	
   

  	
  B&G FOODS, INC.

  	
   

  
	
   

  	
  (f/k/a B&G FOODS HOLDINGS CORP.)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert C. Cantwell

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Robert C. Cantwell

  	
   

  
	
   

  	
   

  	
  Title:   Executive Vice President of Finance

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BGH HOLDINGS, INC.

  	
   

  
	
   

  	
  BLOCH &
  GUGGENHEIMER, INC.

  	
   

  
	
   

  	
  HERITAGE ACQUISITION CORP.

  	
   

  
	
   

  	
  MAPLE GROVE FARMS OF VERMONT, INC.

  	
   

  
	
   

  	
  ORTEGA HOLDINGS INC.

  	
   

  
	
   

  	
  POLANER, INC.

  	
   

  
	
   

  	
  TRAPPEY’S FINE FOODS, INC.

  	
   

  
	
   

  	
  WILLIAM UNDERWOOD COMPANY

  	
   

  
	
   

  	
  as Guarantors

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert C. Cantwell

  	
   

  	
   

  
	
   

  	
   

  	
  Name:  Robert C. Cantwell

  	
   

  
	
   

  	
   

  	
  Title:    Authorized Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert A. Massimillo

  	
   

  	
   

  
	
   

  	
   

  	
  Name:  Robert A. Massimillo

  	
   

  
	
   

  	
   

  	
  Title:    Vice President

  	
   

  

 

 

[Face of Note]

 

 

CUSIP/CINS
                     

 

8.0% Senior Notes
due 2011

 

	
  No.

  	
  $                

  

 

B&G FOODS, INC.

(f/k/a B&G FOODS HOLDINGS CORP.)

 

promises to pay to

 

or registered assigns,

 

the principal sum of
                                                                                                                                                                   
DOLLARS on October 1, 2011.

 

Interest Payment
Dates:  April 1 and October 1

 

Record Dates:  March 15 and September 15

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
  B&G FOODS, INC.

  
	
   

  	
  (f/k/a B&G FOODS HOLDINGS CORP.)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  This is one of the Notes referred to

  	
   

  
	
  in the within-mentioned Indenture:

  	
   

  
	
   

  	
   

  
	
  THE BANK OF NEW YORK,

  	
   

  
	
   as Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  	
   

  

 

A-1

 

[Back of Note]

8.0% Senior Notes due 2011

 

THIS GLOBAL NOTE IS HELD
BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS
NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT
TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE
MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF
THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART
PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE
DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE
INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY
WITH THE PRIOR WRITTEN CONSENT OF B&G FOODS, INC. (F/K/A B&G FOODS
HOLDINGS CORP.).

 

UNLESS AND UNTIL IT IS
EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT
BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW
YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER
ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

 

Capitalized terms used
herein have the meanings assigned to them in the Indenture referred to below
unless otherwise indicated.

 

(1) INTEREST.  B&G Foods, Inc. (f/k/a B&G Foods
Holdings Corp.), a Delaware corporation (the “Company”),
promises to pay interest on the principal amount of this Note at 8.0% per annum
from October 14, 2004 until maturity. 
The Company will pay interest semi-annually in arrears on April 1 and
October 1 of each year, or if any such day is not a Business Day, on the next
succeeding Business Day (each, an “Interest
Payment Date”).  Interest on
the Notes will accrue from the most recent date to which interest has been paid
or, if no interest has been paid, from the date of issuance; provided
that if there is no existing Default in the payment of interest, and if this
Note is authenticated between a record date referred to on the face hereof and
the next succeeding Interest Payment Date, interest shall accrue from such next
succeeding Interest Payment Date; provided further that the first Interest
Payment Date shall be April 1, 2005. 
The Company will pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal and premium, if any,
from time to time on demand at a rate that is 1% per annum in excess of the
rate then in effect to the extent lawful; it will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest (without regard to any applicable grace periods) from
time to time on demand at the same rate to the extent lawful.  Interest will be computed on the basis of a
360-day year of twelve 30-day months.

 

A-2

 

(2) METHOD OF PAYMENT.  The Company will pay interest on the Notes
(except defaulted interest) to the Persons who are registered Holders of Notes
at the close of business on the March 15 or September 15 next preceding the
Interest Payment Date, even if such Notes are canceled after such record date
and on or before such Interest Payment Date, except as provided in Section 2.12
of the Indenture with respect to defaulted interest.  The Notes will be payable as to principal, premium and interest
at the office or agency of the Company maintained for such purpose within or
without the City and State of New York, or, at the option of the Company,
payment of interest may be made by check mailed to the Holders at their
addresses set forth in the register of Holders; provided that payment by
wire transfer of immediately available funds will be required with respect to
principal of and interest, premium on, all Global Notes and all other Notes the
Holders of which will have provided wire transfer instructions to the Company
or the Paying Agent.  Such payment will
be in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.

 

(3) PAYING AGENT AND REGISTRAR.  Initially, The Bank of New York, the Trustee
under the Indenture, will act as Paying Agent and Registrar.  The Company may change any Paying Agent or
Registrar without notice to any Holder. 
The Company or any of its Subsidiaries may act in any such capacity.

 

(4) INDENTURE.  The Company issued the Notes under an
Indenture dated as of October 14, 2004 (the “Indenture”)
among the Company, the Guarantors and the Trustee.  The terms of the Notes include those stated in the Indenture and
those made part of the Indenture by reference to the TIA.  The Notes are subject to all such terms, and
Holders are referred to the Indenture and such Act for a statement of such
terms.  To the extent any provision of
this Note conflicts with the express provisions of the Indenture, the
provisions of the Indenture shall govern and be controlling.  The Notes are unsecured obligations of the
Company.  The Indenture does not limit
the aggregate principal amount of Notes that may be issued thereunder.

 

(5) OPTIONAL REDEMPTION.

 

(a)   At any time prior to October 1,
2007, the Company may on any one or more occasions redeem up to 35% of the
aggregate principal amount of Notes issued under the Indenture (including
Additional Notes, if any) at a redemption price of 108.000% of the principal
amount, plus accrued and unpaid interest to the redemption date, with the net
cash proceeds of one or more Public Equity Offerings of the Company; provided
that:

 

(1) at least 65% of the aggregate
principal amount of Notes originally issued under the Indenture (excluding
Notes held by the Company and its Subsidiaries) remains outstanding immediately
after the occurrence of such redemption; and

 

(2) the redemption occurs within 90
days of the date of the closing of such Public Equity Offering.

 

(b)   Except pursuant to the preceding
paragraphs (a), the Notes will not be redeemable at the Company’s option prior
to October 1, 2008.

 

(c)   On or after October 1, 2008, the
Company may redeem all or a part of the Notes upon not less than 30 nor more
than 60 days’ notice, at the redemption prices (expressed as percentages of
principal amount) set forth below plus accrued and unpaid interest on the Notes
redeemed, to the applicable redemption date, if redeemed during the
twelve-month period beginning on October 1 of the years

 

A-3

 

indicated
below, subject to the rights of Holders of Notes on the relevant record date to
receive interest on the relevant interest payment date:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  104.000

  	
  %

  
	
  2009

  	
   

  	
  102.000

  	
  %

  
	
  2010 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

Unless the Company
defaults in the payment of the redemption price, interest will cease to accrue
on the Notes or portions thereof called for redemption on the applicable
redemption date.

 

(6) MANDATORY REDEMPTION.

 

The Company is not be
required to make mandatory redemption or sinking fund payments with respect to
the Notes.

 

(7) REPURCHASE
AT
THE OPTION OF HOLDER.

 

(a)   If there is a Change of Control, the Company will be
required to make an offer (a “Change of
Control Offer”) to each Holder to repurchase all or any part (equal
to $1,000 or an integral multiple thereof) of each Holder’s Notes at a purchase
price in cash equal to 101% of the aggregate principal amount thereof plus
accrued and unpaid interest thereon to the date of purchase, subject to the
rights of Holders on the relevant record date to receive interest due on the
relevant interest payment date (the “Change
of Control Payment”).  Within
10 days following any Change of Control, the Company will mail a notice to each
Holder setting forth the procedures governing the Change of Control Offer as
required by the Indenture.

 

(b)   If the Company or a Restricted Subsidiary of the
Company consummates any Asset Sales, within five days of each date on which the
aggregate amount of Excess Proceeds exceeds $10.0 million, the Company will
commence an offer to all Holders of Notes and all holders of other Indebtedness
that is pari
passu with the Notes containing provisions similar to those set
forth in the Indenture with respect to offers to purchase or redeem with the
proceeds of sales of assets (an “Asset Sale
Offer”) pursuant to Section 3.09 of the Indenture to purchase the
maximum principal amount of Notes (including any Additional Notes) and such
other pari
passu Indebtedness that may be purchased out of the Excess Proceeds
at an offer price in cash in an amount equal to 100% of the principal amount
thereof plus accrued and unpaid interest and thereon to the date of purchase in
accordance with the procedures set forth in the Indenture.  To the extent that the aggregate amount of
Notes (including any Additional Notes) and other pari passu Indebtedness
tendered pursuant to an Asset Sale Offer is less than the Excess Proceeds, the
Company (or such Restricted Subsidiary) may use such deficiency for any purpose
not otherwise prohibited by the Indenture. 
If the aggregate principal amount of Notes and other pari passu
Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess
Proceeds, the Trustee shall select the Notes and such other pari passu
Indebtedness to be purchased on a pro rata
basis.  Holders of Notes that are the
subject of an offer to purchase will receive an Asset Sale Offer from the Company
prior to any related purchase date and may elect to have such Notes purchased
by completing the form entitled “Option of
Holder to Elect Purchase” attached to the Notes.

 

A-4

 

(8) NOTICE OF REDEMPTION.  Notice of redemption will be mailed at least
30 days but not more than 60 days before the redemption date to each Holder
whose Notes are to be redeemed at its registered address, except that
redemption notices may be mailed more than 60 days prior to a redemption date
if the notice is issued in connection with a defeasance of the Notes or a
satisfaction or discharge of the Indenture. 
Notes in denominations larger than $1,000 may be redeemed in part but
only in whole multiples of $1,000, unless all of the Notes held by a Holder are
to be redeemed.

 

(9) DENOMINATIONS, TRANSFER, EXCHANGE.  The Notes are in registered form without
coupons in denominations of $1,000 and integral multiples of $1,000.  The transfer of Notes may be registered and
Notes may be exchanged as provided in the Indenture.  The Registrar and the Trustee may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents and the
Company may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture.  The Company
need not exchange or register the transfer of any Note or portion of a Note
selected for redemption, except for the unredeemed portion of any Note being
redeemed in part.  Also, the Company
need not exchange or register the transfer of any Notes for a period of 15 days
before a selection of Notes to be redeemed or during the period between a
record date and the corresponding Interest Payment Date.

 

(10) PERSONS DEEMED OWNERS.  The registered Holder of a Note may be
treated as its owner for all purposes.

 

(11) AMENDMENT, SUPPLEMENT AND WAIVER.  Subject to certain exceptions, the Indenture
or the Notes or the Note Guarantees may be amended or supplemented with the
consent of the Holders of at least a majority in aggregate principal amount of
the then outstanding Notes including Additional Notes, if any, voting as a
single class, and any existing Default or Event or Default or compliance with
any provision of the Indenture or the Notes or the Note Guarantees may be
waived with the consent of the Holders of a majority in aggregate principal
amount of the then outstanding Notes including Additional Notes, if any, voting
as a single class.  Without the consent
of any Holder of a Note, the Indenture or the Notes or the Note Guarantees may
be amended or supplemented to cure any ambiguity, defect or inconsistency, to
provide for uncertificated Notes in addition to or in place of certificated
Notes, to provide for the assumption of the Company’s or a Guarantor’s
obligations to Holders of the Notes and Note Guarantees in case of a merger or
consolidation, to make any change that would provide any additional rights or
benefits to the Holders of the Notes or that does not adversely affect the
legal rights under the Indenture of any such Holder, to comply with the
requirements of the SEC in order to effect or maintain the qualification of the
Indenture under the TIA, to conform the text of the Indenture or the Notes to
any provision of the “Description of Notes” section of the Company’s prospectus
dated October 8, 2004, relating to the initial offering of the Notes, to the
extent that such provision in that “Description of Notes” was intended to be a
verbatim recitation of a provision of the Indenture, the Note Guarantees or the
Notes; to provide for the issuance of Additional Notes in accordance with the
limitations set forth in the Indenture, or to allow any Guarantor to execute a
supplemental indenture to the Indenture and/or a Note Guarantee with respect to
the Notes.

 

(12) DEFAULTS AND REMEDIES.  Events of Default include:  (i) default for 30 days in the payment when
due of interest on the Notes; (ii) default in the payment when due of the
principal of, or premium, if any, on, the Notes when the same becomes due and
payable at maturity, upon redemption (including in connection with an offer to
purchase) or otherwise; (iii) failure by the Company or any of its Restricted
Subsidiaries to comply with Section 4.07, 4.09 or 5.01 of the Indenture; (iv)
failure by the Company or any of its Restricted Subsidiaries for 30 days to
comply with Sections 4.10 and 4.15 of the Indenture; (v) failure by the Company
or any of its Restricted

 

A-5

 

Subsidiaries for 60 days after notice to the Company by the
Trustee or the Holders of at least 25% in aggregate principal amount of the
Notes then outstanding voting as a single class to comply with any of the other
agreements in the Indenture or the Notes; (vi) default under certain other
agreements relating to Indebtedness of the Company which default results in the
acceleration of such Indebtedness prior to its express maturity; (vii) certain
final judgments for the payment of money that remain undischarged for a period
of 60 days; (viii) certain events of bankruptcy or insolvency with respect to
the Company or any of its Restricted Subsidiaries that is a Significant
Subsidiary or any group of Restricted Subsidiaries that, taken together, would
constitute a Significant Subsidiary;  and
(x) except as permitted by the Indenture, any Note Guarantee is held in any
judicial proceeding to be unenforceable or invalid or ceases for any reason to
be in full force and effect or any Guarantor or any Person acting on its behalf
denies or disaffirms its obligations under such Guarantor’s Note
Guarantee.  If any Event of Default
occurs and is continuing, the Trustee or the Holders of at least 25% in
aggregate principal amount of the then outstanding Notes may declare all the
Notes to be due and payable immediately. 
Notwithstanding the foregoing, in the case of an Event of Default
arising from certain events of bankruptcy or insolvency, all outstanding Notes
will become due and payable immediately without further action or notice.  Holders may not enforce the Indenture or the
Notes except as provided in the Indenture. 
Subject to certain limitations, Holders of a majority in aggregate
principal amount of the then outstanding Notes may direct the Trustee in its
exercise of any trust or power.  The
Trustee may withhold from Holders of the Notes notice of any continuing Default
or Event of Default (except a Default or Event of Default relating to the
payment of principal or interest or premium) if it determines that withholding
notice is in their interest.  The
Holders of a majority in aggregate principal amount of the then outstanding
Notes by notice to the Trustee may, on behalf of the Holders of all of the
Notes, rescind an acceleration or waive any existing Default or Event of
Default and its consequences under the Indenture except a continuing Default or
Event of Default in the payment of interest or premium on, or the principal of,
the Notes.  The Company is required to
deliver to the Trustee annually a statement regarding compliance with the
Indenture, and the Company is required, upon becoming aware of any Default or
Event of Default, to deliver to the Trustee a statement specifying such Default
or Event of Default.

 

(13) TRUSTEE DEALINGS WITH COMPANY.  The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the
Company or its Affiliates, and may otherwise deal with the Company or its
Affiliates, as if it were not the Trustee.

 

(14) NO RECOURSE AGAINST OTHERS.  No past, present or future director,
officer, employee, direct or indirect incorporator, Affiliate, stockholder or
controlling Person, of the Company or any Guarantor, as such, or any successor
entity, will have any liability for any obligations of the Company or the
Guarantors under the Notes, this Indenture, the Note Guarantees or for any
claim based on, in respect of, or by reason of, such obligations or their
creation.  Each Holder of Notes by
accepting a Note waives and releases all such liability.  The waiver and release are part of the
consideration for issuance of the Notes. 
The waiver may not be effective to waive liabilities under the federal
securities laws.

 

(15) AUTHENTICATION.  This Note will not be valid until
authenticated by the manual signature of the Trustee or an authenticating
agent.

 

(16) ABBREVIATIONS.  Customary abbreviations may be used in the
name of a Holder or an assignee, such as: 
TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT
TEN (= joint tenants with right of survivorship and not as tenants in common),
CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

A-6

 

(17) CUSIP NUMBERS.  Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Company has
caused CUSIP numbers to be printed on the Notes, and the Trustee may use CUSIP
numbers in notices of redemption as a convenience to Holders.  No representation is made as to the accuracy
of such numbers either as printed on the Notes or as contained in any notice of
redemption, and reliance may be placed only on the other identification numbers
placed thereon.

 

(18) GOVERNING LAW.  THE
INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THE
INDENTURE, THIS NOTE AND THE NOTE GUARANTEES WITHOUT GIVING EFFECT TO
APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF
THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

The Company will furnish
to any Holder upon written request and without charge a copy of the Indenture.  Requests may be made to:

 

B&G Foods, Inc.
(f/k/a B&G Foods Holdings Corp.)

Four Gatehall Drive,
Suite 110

Parsippany, NJ  07054

Attention:  Chief Financial Officer

 

A-7

 

ASSIGNMENT FORM

 

To assign this Note, fill
in the form below:

 

	
  (I) or (we) assign and
  transfer this Note to:

  	
   

  
	
   

  	
  (Insert
  assignee’s legal name)

  
	
   

  
	
   

  
	
  (Insert
  assignee’s soc. sec. or tax I.D. no.)

  
	
   

  
	
   

  
	
   

  
	
  (Print
  or type assignee’s name, address and zip code)

  

 

and irrevocably appoint

to transfer this Note on the books of the Company.  The agent may substitute another to act for him.

 

	
  Date:

  	
   

  
	
   

  	
   

  
	
   

  	
  Your Signature:

  	
   

  	
   

  
	
   

  	
  (Sign exactly as your name appears on the face of
  this Note)

  
	
   

  	
   

  
	
  Signature
  Guarantee*:

  	
   

  	
   

  	
   

  
						

 

*              Participant in a
recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

 

A-8

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to
have this Note purchased by the Company pursuant to Section 4.10 or 4.15 of the
Indenture, check the appropriate box below:

 

o Section
4.10                    o
Section 4.15

 

If you want to elect to
have only part of the Note purchased by the Company pursuant to Section 4.10 or
Section 4.15 of the Indenture, state the amount you elect to have purchased:

 

$                    

 

	
  Date: 
                         

  	
   

  
	
   

  	
   

  
	
   

  	
  Your Signature:

  	
   

  	
   

  
	
   

  	
  (Sign exactly as your name appears on the face of
  this Note)

  
	
   

  	
   

  
	
   

  	
  Tax
  Identification No.:

  	
   

  	
   

  
	
   

  	
   

  
	
  Signature
  Guarantee*:

  	
   

  	
   

  	
   

  
							

 

*              Participant
in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

 

A-9

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

 

The following exchanges
of a part of this Global Note for an interest in another Global Note or for a
Definitive Note, or exchanges of a part of another Global Note or Definitive
Note for an interest in this Global Note, have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of
  decrease in

  Principal Amount

  at maturity of

  this Global Note

  	
   

  	
  Amount of
  increase in

  Principal Amount

  at maturity of

  this Global Note

  	
   

  	
  Principal
  Amount

  at maturity of this

  Global Note following

  such decrease

  (or increase)

  	
   

  	
  Signature
  of authorized

  officer of Trustee or

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-10

 

EXHIBIT
B

 

FORM OF NOTATION OF GUARANTEE

 

For value received, each
Guarantor (which term includes any successor Person under the Indenture) has,
jointly and severally, unconditionally guaranteed, to the extent set forth in
the Indenture and subject to the provisions in the Indenture dated as of
October 14, 2004 (the “Indenture”) among B&G Foods, Inc.
(f/k/a B&G Foods Holdings Corp.), (the “Company”), the Guarantors party thereto
and The Bank of New York, as trustee (the “Trustee”), (a) the due and punctual
payment of the principal of, premium and interest on, the Notes, whether at
maturity, by acceleration, redemption or otherwise, the due and punctual payment
of interest on overdue principal of and interest on the Notes, if any, if
lawful, and the due and punctual performance of all other obligations of the
Company to the Holders or the Trustee all in accordance with the terms of the
Indenture and (b) in case of any extension of time of payment or renewal of any
Notes or any of such other obligations, that the same will be promptly paid in
full when due or performed in accordance with the terms of the extension or
renewal, whether at stated maturity, by acceleration or otherwise.  The obligations of the Guarantors to the
Holders of Notes and to the Trustee pursuant to the Note Guarantee and the
Indenture are expressly set forth in Article 10 of the Indenture and reference
is hereby made to the Indenture for the precise terms of the Note Guarantee.

 

Capitalized terms used
but not defined herein have the meanings given to them in the Indenture.

 

	
   

  	
  [NAME OF GUARANTOR(S)]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

B-1

 

EXHIBIT
C

 

FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS

 

SUPPLEMENTAL INDENTURE
(this “Supplemental
Indenture”), dated as of
                        ,
200     , among
                                 
(the “Guaranteeing
Subsidiary”), a subsidiary of B&G Foods, Inc. (f/k/a B&G
Foods Holdings Corp.) (or its permitted successor), a Delaware corporation (the
“Company”),
the Company, the other Guarantors (as defined in the Indenture referred to
herein) and The Bank of New York, as trustee under the Indenture referred to
below (the “Trustee”).

 

W I T N E S S E T H

 

WHEREAS, the Company has
heretofore executed and delivered to the Trustee an indenture (the “Indenture”),
dated as of October 14, 2004 providing for the issuance of 8.0% Senior Notes
due 2011 (the “Notes”);

 

WHEREAS, the Indenture
provides that under certain circumstances the Guaranteeing Subsidiary shall
execute and deliver to the Trustee a supplemental indenture pursuant to which
the Guaranteeing Subsidiary shall unconditionally guarantee all of the
Company’s Obligations under the Notes and the Indenture on the terms and
conditions set forth herein (the “Note Guarantee”); and

 

WHEREAS, pursuant to
Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver
this Supplemental Indenture.

 

NOW, THEREFORE, in
consideration of the foregoing and for other good and valuable consideration,
the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary and
the Trustee mutually covenant and agree for the equal and ratable benefit of
the Holders of the Notes as follows:

 

1.             CAPITALIZED
TERMS.  Capitalized terms used herein
without definition shall have the meanings assigned to them in the Indenture.

 

2.             AGREEMENT
TO GUARANTEE.  The Guaranteeing
Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and
subject to the conditions set forth in the Note Guarantee and in the Indenture
including but not limited to Article 10 thereof.

 

4.             NO
RECOURSE AGAINST OTHERS.  No past,
present or future director, officer, employee, incorporator, stockholder or
agent of the Guaranteeing Subsidiary, as such, shall have any liability for any
obligations of the Company or any Guaranteeing Subsidiary under the Notes, any
Note Guarantees, the Indenture or this Supplemental Indenture or for any claim
based on, in respect of, or by reason of, such obligations or their
creation.  Each Holder of the Notes by
accepting a Note waives and releases all such liability.  The waiver and release are part of the
consideration for issuance of the Notes. 
Such waiver may not be effective to waive liabilities under the federal
securities laws and it is the view of the SEC that such a waiver is against
public policy.

 

5.             NEW
YORK LAW TO GOVERN.  THE INTERNAL LAW OF
THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL
INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO
THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.

 

C-1

 

6.             COUNTERPARTS.  The parties may sign any number of copies of
this Supplemental Indenture.  Each
signed copy shall be an original, but all of them together represent the same
agreement.

 

7.             EFFECT
OF HEADINGS.  The Section headings
herein are for convenience only and shall not affect the construction hereof.

 

8.             THE
TRUSTEE.  The Trustee shall not be
responsible in any manner whatsoever for or in respect of the validity or
sufficiency of this Supplemental Indenture or for or in respect of the recitals
contained herein, all of which recitals are made solely by the Guaranteeing
Subsidiary and the Company.

 

C-2

 

IN WITNESS WHEREOF, the
parties hereto have caused this Supplemental Indenture to be duly executed and
attested, all as of the date first above written.

 

	
  Dated:
                               ,
  20

  	
   

  
	
   

  	
   

  
	
   

  	
  [GUARANTEEING
  SUBSIDIARY]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  B&G FOODS, INC.

  
	
   

  	
  (f/k/a B&G FOODS HOLDINGS CORP.)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [EXISTING GUARANTORS]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
   as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  	
   

  
					

 

C-3Exhibit 10.1

 

Execution Copy

 

 

 

 

$30,000,000

 

REVOLVING
CREDIT AGREEMENT

 

among

 

B&G FOODS,
INC.,

as Borrower

 

The Several
Lenders

from Time to Time Parties Hereto,

 

LEHMAN
BROTHERS INC.,

as Arranger

 

THE BANK OF
NEW YORK,

as Documentation Agent

 

FLEET NATIONAL
BANK,

a Bank of America company,

as Syndication Agent

 

And

 

LEHMAN
COMMERCIAL PAPER INC.,

as Administrative Agent

 

Dated as of
October 14, 2004

 

 

 

 

TABLE
OF CONTENTS

 

	
  SECTION
  1.   DEFINITIONS

  	
   

  
	
   

  	
  1.1  
  Defined Terms

  	
   

  
	
   

  	
  1.2   Other Definitional Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  2.   AMOUNT AND TERMS OF COMMITMENTS; LETTERS OF CREDIT

  	
   

  
	
   

  	
  2.1   Revolving Credit Commitments;
  Swing Line Commitment

  	
   

  
	
   

  	
  2.2   Procedure for Borrowing;
  Swing Line Loans; Refunding of Swing Line Loans

  	
   

  
	
   

  	
  2.3   Repayment of Loans;
  Evidence of Debt

  	
   

  
	
   

  	
  2.4   Commitment Fees, etc

  	
   

  
	
   

  	
  2.5   Termination or Reduction of
  Revolving Credit Commitments

  	
   

  
	
   

  	
  2.6   Optional Prepayments

  	
   

  
	
   

  	
  2.7   Conversion and Continuation
  Options

  	
   

  
	
   

  	
  2.8   Minimum Amounts and Maximum
  Number of Eurodollar Tranches

  	
   

  
	
   

  	
  2.9   Interest Rates and Payment
  Dates

  	
   

  
	
   

  	
  2.10   Computation of Interest
  and Fees

  	
   

  
	
   

  	
  2.11   Inability to Determine
  Interest Rate

  	
   

  
	
   

  	
  2.12   Pro Rata Treatment and Payments

  	
   

  
	
   

  	
  2.13   Requirements of Law

  	
   

  
	
   

  	
  2.14   Taxes

  	
   

  
	
   

  	
  2.15   Indemnity

  	
   

  
	
   

  	
  2.16  
  Illegality

  	
   

  
	
   

  	
  2.17   Change of Lending Office

  	
   

  
	
   

  	
  2.18   Substitution of Lenders

  	
   

  
	
   

  	
  2.19  
  L/C Commitment

  	
   

  
	
   

  	
  2.20   Procedure for Issuance of
  Letter of Credit

  	
   

  
	
   

  	
  2.21   Fees and Other Charges

  	
   

  
	
   

  	
  2.22   L/C Participations

  	
   

  
	
   

  	
  2.23   Reimbursement Obligation
  of the Borrower

  	
   

  
	
   

  	
  2.24   Obligations Absolute

  	
   

  
	
   

  	
  2.25   Letter of Credit Payments

  	
   

  
	
   

  	
  2.26  
  Applications

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  3.   REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
  3.1   Financial Condition

  	
   

  
	
   

  	
  3.2   No Change

  	
   

  

 

i

 

	
   

  	
  3.3   Corporate Existence;
  Compliance with Law

  	
   

  
	
   

  	
  3.4   Corporate Power;
  Authorization; Enforceable Obligations

  	
   

  
	
   

  	
  3.5  
  No Legal Bar

  	
   

  
	
   

  	
  3.6   No Material Litigation

  	
   

  
	
   

  	
  3.7   No Default

  	
   

  
	
   

  	
  3.8   Ownership of Property; Liens

  	
   

  
	
   

  	
  3.9   Intellectual Property

  	
   

  
	
   

  	
  3.10   Taxes

  	
   

  
	
   

  	
  3.11   Federal Regulations

  	
   

  
	
   

  	
  3.12  
  Labor Matters

  	
   

  
	
   

  	
  3.13   ERISA

  	
   

  
	
   

  	
  3.14   Investment Company Act;
  Other Regulations

  	
   

  
	
   

  	
  3.15  
  Subsidiaries

  	
   

  
	
   

  	
  3.16  
  Use of Proceeds

  	
   

  
	
   

  	
  3.17   Environmental Matters

  	
   

  
	
   

  	
  3.18   Accuracy of Information, etc

  	
   

  
	
   

  	
  3.19   Security Documents

  	
   

  
	
   

  	
  3.20  
  Solvency

  	
   

  
	
   

  	
  3.21   Senior Indebtedness

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.   CONDITIONS PRECEDENT

  	
   

  
	
   

  	
  4.1   Conditions to Initial
  Extension of Credit

  	
   

  
	
   

  	
  4.2   Conditions to Each
  Extension of Credit

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.   AFFIRMATIVE COVENANTS

  	
   

  
	
   

  	
  5.1   Financial Statements

  	
   

  
	
   

  	
  5.2   Certificates; Other Information

  	
   

  
	
   

  	
  5.3   Payment of Obligations

  	
   

  
	
   

  	
  5.4   Conduct of Business and
  Maintenance of Existence, etc

  	
   

  
	
   

  	
  5.5   Maintenance of Property;
  Insurance

  	
   

  
	
   

  	
  5.6   Inspection of Property;
  Books and Records; Discussions

  	
   

  
	
   

  	
  5.7  
  Notices

  	
   

  
	
   

  	
  5.8   Environmental Laws

  	
   

  
	
   

  	
  5.9   Additional Collateral, etc

  	
   

  
	
   

  	
  5.10   Further Assurances

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.   NEGATIVE COVENANTS

  	
   

  
	
   

  	
  6.1   Financial Condition Covenants

  	
   

  
	
   

  	
  6.2   Limitation on Indebtedness

  	
   

  
	
   

  	
  6.3   Limitation on Liens

  	
   

  

 

ii

 

	
   

  	
  6.4   Limitation on Fundamental
  Changes

  	
   

  
	
   

  	
  6.5   Limitation on Disposition
  of Property

  	
   

  
	
   

  	
  6.6   Limitation on Restricted
  Payments

  	
   

  
	
   

  	
  6.7   Limitation on Capital
  Expenditures

  	
   

  
	
   

  	
  6.8   Limitation on Investments

  	
   

  
	
   

  	
  6.9   Limitation on Optional
  Payments and Modifications of Debt Instruments, etc

  	
   

  
	
   

  	
  6.10   Limitation on Transactions
  with Affiliates

  	
   

  
	
   

  	
  6.11   Limitation on Sales and
  Leasebacks

  	
   

  
	
   

  	
  6.12   Limitation on Changes in
  Fiscal Periods

  	
   

  
	
   

  	
  6.13   Limitation on Negative
  Pledge Clauses

  	
   

  
	
   

  	
  6.14   Limitation on Restrictions
  on Subsidiary Distributions

  	
   

  
	
   

  	
  6.15   Limitation on Lines of Business

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.   EVENTS OF DEFAULT

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.   THE ADMINISTRATIVE
  AGENT; THE ARRANGER; THE OTHER AGENTS

  	
   

  
	
   

  	
  8.1  
  Appointment

  	
   

  
	
   

  	
  8.2   Delegation of Duties

  	
   

  
	
   

  	
  8.3   Exculpatory Provisions

  	
   

  
	
   

  	
  8.4   Reliance by Administrative
  Agent

  	
   

  
	
   

  	
  8.5  
  Notice of Default

  	
   

  
	
   

  	
  8.6   Non-Reliance on
  Administrative Agent and Other Lenders

  	
   

  
	
   

  	
  8.7  
  Indemnification

  	
   

  
	
   

  	
  8.8   Administrative Agent in Its
  Individual Capacity

  	
   

  
	
   

  	
  8.9   Successor Administrative Agent

  	
   

  
	
   

  	
  8.10   Authorization to Release
  Liens; Other Actions Relating to Security Documents

  	
   

  
	
   

  	
  8.11   The Arranger; the Other Agents

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.   MISCELLANEOUS

  	
   

  
	
   

  	
  9.1   Amendments and Waivers

  	
   

  
	
   

  	
  9.2  
  Notices

  	
   

  
	
   

  	
  9.3   No Waiver; Cumulative Remedies

  	
   

  
	
   

  	
  9.4   Survival of Representations
  and Warranties

  	
   

  
	
   

  	
  9.5   Payment of Expenses

  	
   

  
	
   

  	
  9.6   Successors and Assigns;
  Participations and Assignments

  	
   

  
	
   

  	
  9.7   Adjustments; Set-off

  	
   

  
	
   

  	
  9.8  
  Counterparts

  	
   

  
	
   

  	
  9.9  
  Severability

  	
   

  

 

iii

 

	
   

  	
  9.10  
  Integration

  	
   

  
	
   

  	
  9.11  
  GOVERNING LAW

  	
   

  
	
   

  	
  9.12   Submission To
  Jurisdiction; Waivers

  	
   

  
	
   

  	
  9.13  
  Acknowledgments

  	
   

  
	
   

  	
  9.14  
  Confidentiality

  	
   

  
	
   

  	
  9.15   Release of Collateral
  Security and Guarantee Obligations

  	
   

  
	
   

  	
  9.16   Accounting Changes

  	
   

  
	
   

  	
  9.17   Delivery of Lender Addenda

  	
   

  
	
   

  	
  9.18   WAIVERS OF JURY TRIAL

  	
   

  

 

iv

 

	
  ANNEXES:

  	
   

  
	
   

  	
   

  
	
  A

  	
  Pricing Grid

  	
   

  
	
  B

  	
  Existing
  Letters of Credit

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULES:

  	
   

  
	
   

  	
   

  	
   

  
	
  3.4

  	
  Consents, Authorizations, Filings and
  Notices

  	
   

  
	
  3.9

  	
  Intellectual Property Claims

  	
   

  
	
  3.15

  	
  Subsidiaries

  	
   

  
	
  3.19(a)-1

  	
  UCC Filing Jurisdictions

  	
   

  
	
  3.19(a)-2

  	
  UCC Financing Statements to Remain on File

  	
   

  
	
  6.2(d)

  	
  Existing Indebtedness

  	
   

  
	
  6.3(f)

  	
  Existing
  Liens

  	
   

  
	
  6.10

  	
  Transactions
  with Affiliates

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS:

  	
   

  
	
   

  	
   

  	
   

  
	
  A

  	
  Form of Guarantee and Collateral Agreement

  	
   

  
	
  B

  	
  Form of Compliance Certificate

  	
   

  
	
  C

  	
  Form of Closing Certificate

  	
   

  
	
  E

  	
  Form of Assignment and Acceptance

  	
   

  
	
  F

  	
  Form of Legal Opinion of Dechert LLP

  	
   

  
	
  G-1

  	
  Form of Revolving Credit Note

  	
   

  
	
  G-2

  	
  Form of Swing Line Note

  	
   

  
	
  H

  	
  Form of Exemption Certificate

  	
   

  
	
  I

  	
  Form of
  Lender Addendum

  	
   

  
				

 

v

 

REVOLVING CREDIT AGREEMENT, dated as of
October 14, 2004, among B&G FOODS, INC., a Delaware corporation (the “Borrower”),
the several banks and other financial institutions or entities from time to
time parties to this Agreement (the “Lenders”), LEHMAN BROTHERS INC., as
sole advisor, sole lead arranger and sole bookrunner (in such capacity, the “Arranger”),
THE BANK OF NEW YORK, as Documentation Agent (in such capacity, the “Documentation
Agent”), FLEET NATIONAL BANK, a Bank of America company, as Syndication
Agent (in such capacity, the “Syndication Agent”), and LEHMAN COMMERCIAL
PAPER INC., as Administrative Agent (in such capacity, the “Administrative
Agent”).

 

W
I  T  N  E  S  S  E  T  H:

 

WHEREAS, the Borrower has requested that the
Lenders make a revolving credit facility available to the Borrower for general
corporate purposes of the Borrower and its Subsidiaries (as defined below) in
the ordinary course of business; and

 

WHEREAS, the Lenders are willing to make such
revolving credit facility available upon and subject to the terms and
conditions herein set forth;

 

NOW, THEREFORE, in consideration of the above
premises and the agreements hereinafter set forth, the parties hereto hereby
agree as follows:

 

SECTION 1.  DEFINITIONS

 

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

 

“Acquired
Property”: as defined in the definition of Consolidated EBITDA.

 

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

 

“Administrative
Agent”:  as defined in the preamble
hereto.

 

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

 

“Agents”:  the collective reference to the
Administrative Agent, the Other Agents and, for purposes of Section 8, each
Issuing Lender.

 

“Aggregate
Exposure”:  with respect to any
Lender at any time, an amount equal to the amount of such Lender’s Revolving Credit
Commitment then in effect or, if the Revolving Credit Commitments have been
terminated, the amount of such Lender’s Revolving Extensions of Credit then
outstanding.

 

1

 

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

 

“Agreement”:  this Revolving Credit Agreement, as amended,
supplemented or otherwise modified from time to time.

 

“Alternative Currency”:  any currency which as of the time of any
issuance or renewal, as applicable, of a Permitted Foreign Currency Letter of
Credit is freely tradeable and convertible into Dollars and has been approved
as an “Alternative Currency” for the purposes of this Agreement by the Foreign
Currency L/C Issuing Lender.

 

“Applicable
Margin”:  2.00% in the case of Base
Rate Loans and 3.00% in the case of Eurodollar Loans, provided that after the
first Adjustment Date occurring after the completion of two fiscal quarters of
the Borrower after the Closing Date, the Applicable Margin will be determined
pursuant to the Pricing Grid.

 

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

 

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

 

“Arranger”:  as defined in the preamble hereto.

 

“Assignee”:  as defined in Section 9.6(c).

 

“Assignment
and Acceptance”:  each Assignment and
Acceptance, substantially in the form of Exhibit E, executed and delivered
pursuant to Section 9.6.

 

“Assignor”:  as defined in Section 9.6(c).

 

“Attributable
Debt”:  in respect of a sale and
leaseback transaction, at the time of determination, the present value of the
obligation of the lessee for net rental payments during the remaining term of
the lease included in such sale and leaseback transaction including any period
for which such lease has been extended or may, at the option of the lessor, be
extended.  Such present value shall be
calculated using a discount rate equal to the rate of interest implicit in such
transaction, determined in accordance with GAAP; provided, however,
that if such sale and leaseback transaction results in a Capital Lease Obligation,
the amount of Attributable Debt represented thereby will be determined in
accordance with the definition of “Capital Lease Obligations.”

 

“Available
Revolving Credit Commitment”:  as to
any Lender at any time, an amount equal to the excess, if any, of (a) such
Lender’s Revolving Credit Commitment then in effect over (b) such Lender’s
Revolving Extensions of Credit then outstanding;

 

2

 

provided,
that in calculating any Lender’s Revolving Extensions of Credit for the purpose
of determining such Lender’s Available Revolving Credit Commitment pursuant to
Section 2.4(a), the aggregate principal amount of Swing Line Loans then
outstanding shall be deemed to be zero.

 

“Base Rate”:  for any day, a rate per annum (rounded
upwards, if necessary, to the next 1/16 of 1%) equal to the greater of (a) the
Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in
effect on such day plus 1⁄2 of 1%.  For
purposes hereof:  “Prime Rate”
shall mean the prime lending rate as set forth on the British Banking
Association Telerate Page 5 (or such other comparable page as may, in the
opinion of the Administrative Agent, replace such page for the purpose of
displaying such rate), as in effect from time to time.  Any change in the Base Rate due to a change
in the Prime Rate or the Federal Funds Effective Rate shall be effective as of
the opening of business on the effective day of such change in the Prime Rate
or the Federal Funds Effective Rate, respectively.

 

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

 

“Benefited
Lender”:  as defined in Section 9.7.

 

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

 

“Borrower”:  as defined in the preamble hereto.

 

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

 

“Business
Day”:  (i) for all purposes other
than as covered by clause (ii) below, a day other than a Saturday, Sunday or
other day on which commercial banks in New York City are authorized or required
by law to close and (ii) with respect to all notices and determinations in
connection with, and payments of principal and interest on, Eurodollar Loans,
any day which is a Business Day described in clause (i) and which is also a day
for trading by and between banks in Dollar deposits in the interbank eurodollar
market.

 

“Calculation Date”:  with respect to each Permitted Foreign
Currency Letter of Credit, during the period that such Permitted Foreign
Currency Letter of Credit is outstanding (i) the last Business Day of each
fiscal quarter, (ii) the date on which such Permitted Foreign Currency Letter
of Credit is to be issued or renewed by the Foreign Currency L/C Issuing
Lender, and (iii) the date on which any draft presented under such Permitted
Foreign Currency Letter of Credit is paid by the Foreign Currency L/C Issuing
Lender.

 

 “Capital Expenditures”:  for any period, with respect to any Person,
the aggregate of all expenditures by such Person and its Subsidiaries for the
acquisition or leasing (pursuant to a capital lease) of fixed or capital assets
or additions to equipment (including

 

3

 

replacements,
capitalized repairs and improvements during such period) which should be
capitalized under GAAP on a consolidated balance sheet of such Person and its
Subsidiaries.

 

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

 

“Capital
Stock”:  any and all shares, interests,
participations or other equivalents (however designated) of capital stock of a
corporation (including corporate stock represented by the EIS and corporate
stock outstanding upon the separation of the EIS into the securities
represented thereby), any and all equivalent ownership interests in a Person
(other than a corporation) and any and all warrants, rights or options to
purchase any of the foregoing, but excluding any debt securities convertible
into, or exchangeable for, any of the foregoing.

 

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

 

4

 

“Closing
Date”: the date on which the conditions precedent set forth in Section 4.1
shall have been satisfied or waived.

 

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

 

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

 

“Commitment
Fee Rate”:  1⁄2 of 1% per annum.

 

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

 

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

 

“Conduit
Financing Arrangement”:  as defined
in Section 2.14(d).

 

“Conduit
Lender”:  as defined in Section
2.14(d).

 

“Consolidated
Cash Flow”:  with respect to any
specified Person for any period, the Consolidated Net Income of such Person for
such period plus, without duplication, the sum of (a) an amount equal to
any extraordinary loss plus any net loss realized by such Person or any of its
Subsidiaries in connection with an asset sale, to the extent such losses were
deducted in computing such Consolidated Net Income, (b) provision for taxes
based on income or profits of such Person and its Subsidiaries for such period,
to the extent that such provision for taxes was deducted in computing such
Consolidated Net Income, (c) the Consolidated Fixed Charges of such Person and
its Subsidiaries for such period, to the extent that such Consolidated Fixed
Charges were deducted in computing such Consolidated Net Income, (d)
depreciation, amortization (including amortization of goodwill and other
intangibles but excluding amortization of prepaid cash expenses that were paid
in a prior period and including, without limitation, any Mark-to Market
Adjustment) and other non-cash expenses (excluding any such non-cash expense to
the extent that it represents an accrual of or reserve for cash expenses in any
future period or amortization of a prepaid cash expense that was paid in a
prior period) of such Person and its Subsidiaries for such period to the extent
that such depreciation, amortization and other non-cash expenses were deducted
in computing such Consolidated Net Income, (e) if such period includes the
quarter ended September 27, 2003, $2,200,000, (f) fees and expenses related to
issuance of the Senior Notes, the EIS, the Senior Subordinated Notes and the
other transactions contemplated herein not to exceed $12,000,000 in the
aggregate actually incurred within three months of the Closing Date, (g)
charges incurred within 180 days of the Closing Date attributable to write-off
of bond discount and the write-off of deferred financing fees and costs,
relating to the pay-off of existing Indebtedness in an amount not to exceed
$18,200,000 and minus non-cash items increasing such Consolidated Net
Income for such period (including, without limitation,

 

5

 

any Mark-to
Market Adjustment), other than the accrual of revenue in the ordinary course of
business, in each case, on a consolidated basis and determined in accordance
with GAAP.

 

“Consolidated
EBITDA”:  of any Person for any
period, Consolidated Net Income of such Person and its Subsidiaries for such
period plus, without duplication and to the extent reflected as a charge
in the statement of such Consolidated Net Income for such period, the sum of
(a) income tax expense, (b) Consolidated Interest Expense of such Person and
its Subsidiaries, amortization or writeoff of debt discount and debt issuance
costs and commissions, discounts and other fees and charges associated with
Indebtedness, (c) depreciation and amortization expense, (d) amortization of
intangibles (including, but not limited to, goodwill) and organization costs,
(e) any extraordinary, unusual or non-recurring expenses or losses (including,
whether or not otherwise includable as a separate item in the statement of such
Consolidated Net Income for such period, losses on sales of assets outside of
the ordinary course of business), (f) any other non-cash charges, (g) if such
period includes the quarter ended September 27, 2003, $2,200,000, (h) fees and
expenses related to issuance of the Senior Notes, the EIS, the Senior
Subordinated Notes and the other transactions contemplated herein not to exceed
$12,000,000 in the aggregate actually incurred within three months of the
Closing Date, and (i) charges incurred within 180 days of the Closing Date
attributable to the write-off of bond discount and the write-off of deferred
financing fees and costs, relating to the pay-off of existing Indebtedness in
an amount not to exceed $18,200,000, and minus, to the extent included
in the statement of such Consolidated Net Income for such period, the sum of
(a) interest income (except to the extent deducted in determining Consolidated
Interest Expense), (b) any extraordinary, unusual or non-recurring income or
gains (including, whether or not otherwise includable as a separate item in the
statement of such Consolidated Net Income for such period, gains on the sales
of assets outside of the ordinary course of business), and (c) any other
non-cash income, all as determined on a consolidated basis; provided,
that for purposes of calculating Consolidated EBITDA of the Borrower and its
Subsidiaries for any period, (i) the Consolidated EBITDA of any Person or
assets constituting a division or a line of business (such person or assets an “Acquired
Property”) acquired by the Borrower or its Subsidiaries during such period
shall be included on a pro  forma basis for such period (assuming
the consummation of such acquisition and the incurrence or assumption of any
Indebtedness in connection therewith occurred on the first day of such period)
if the balance sheet of such Acquired Property as at the end of the period preceding
the acquisition of such Acquired Property and the related consolidated
statements of income and stockholders’ equity and of cash flows for the period
in respect of which Consolidated EBITDA is to be calculated (x) have been
previously provided to the Administrative Agent and the Lenders and
(y) either (1) have been reported on without a qualification arising out
of the scope of the audit by independent certified public accountants of
nationally recognized standing or (2) have been found acceptable by the
Administrative Agent, (ii) the Consolidated EBITDA of any assets Disposed of by
the Borrower or its Subsidiaries during such period shall be excluded for such
period (assuming the consummation of such Disposition and the repayment of any
Indebtedness in connection therewith occurred on the first day of such period)
and (iii) in calculating the amount of the Consolidated EBITDA of any Acquired
Property to be included on a pro  forma basis pursuant to the

 

6

 

foregoing
clause (i) of this proviso, the pro forma expenses of the
Acquired Property for the relevant period shall be determined in accordance
with the Borrower’s customary practices and consistent with the methodology
used for acquisitions consummated in the fiscal year prior to the Closing Date.

 

“Consolidated
Fixed Charge Coverage Ratio”:  with
respect to any specified Person for any period, the ratio of the Consolidated
Cash Flow of such Person for such period to the Consolidated Fixed Charges of
such Person for such period.  In the
event that the specified Person or any of its Subsidiaries incurs, assumes,
guarantees, repays, repurchases, redeems, defeases or otherwise discharges any
Indebtedness (other than ordinary working capital borrowings) or issues,
repurchases or redeems preferred stock subsequent to the commencement of the
period for which the Consolidated Fixed Charge Coverage Ratio is being
calculated and on or prior to the date on which the event for which the
calculation of the Consolidated Fixed Charge Coverage Ratio is made, then the
Consolidated Fixed Charge Coverage Ratio will be calculated giving pro forma
effect to such incurrence, assumption, guarantee, repayment, repurchase,
redemption, defeasance or other discharge of Indebtedness, or such issuance,
repurchase or redemption of preferred stock, and the use of the proceeds
therefrom, as if the same had occurred at the beginning of the applicable
four-quarter reference period.  In
addition, for purposes of calculating the Consolidated Fixed Charge Coverage
Ratio (a) acquisitions that have been made by the specified Person or any of
its Subsidiaries, including through mergers or consolidations, or any Person or
any of its Subsidiaries acquired by the specified Person or any of its Subsidiaries,
and including any related financing transactions and including increases in
ownership of Subsidiaries, during the four-quarter reference period or
subsequent to such reference period and on or prior to the calculation date
will be given pro forma effect as if they had occurred on the first day of the
four-quarter reference period, and Consolidated Cash Flow for such reference
period will be calculated on a pro forma basis in accordance with Regulation
S-X under the Securities Act of 1933, as amended, (b) the Consolidated Cash
Flow attributable to discontinued operations, as determined in accordance with
GAAP, and operations or businesses (and ownership interests therein) disposed
of prior to the calculation date, will be excluded, (c) the Consolidated Fixed
Charges attributable to discontinued operations, as determined in accordance
with GAAP, and operations or businesses (and ownership interests therein)
disposed of prior to the calculation date, will be excluded, but only to the
extent that the obligations giving rise to such Consolidated Fixed Charges will
not be obligations of the specified Person or any of its Subsidiaries following
the calculation date, (d) any Person that is a Subsidiary on the calculation
date will be deemed to have been a Subsidiary at all times during such
four-quarter period, (e) any Person that is not a Subsidiary on the calculation
date will be deemed not to have been a Subsidiary at any time during such
four-quarter period and (f) if any Indebtedness bears a floating rate of interest,
the interest expense on such Indebtedness will be calculated as if the rate in
effect on the calculation date had been the applicable rate for the entire
period (taking into account any Hedging Obligation applicable to such
Indebtedness if such Hedging Obligation has a remaining term as at the
calculation date in excess of twelve months).

 

“Consolidated
Fixed Charges”:  with respect to any
specified Person for any period, the sum, without duplication, of (a) the
consolidated interest expense of such

 

7

 

Person and its
Subsidiaries for such period, whether paid or accrued, including, without
limitation, amortization of debt issuance costs and original issue discount,
non-cash interest payments, the interest component of any deferred payment
obligations, the interest component of all payments associated with Capital
Lease Obligations, imputed interest with respect to Attributable Debt,
commissions, discounts and other fees and charges incurred in respect of letter
of credit or bankers’ acceptance financings, and net of the effect of all
payments made or received pursuant to Hedging Obligations in respect of
interest rates, plus (b) the consolidated interest expense of such
Person and its Subsidiaries that was capitalized during such period, plus
(c) any interest on Indebtedness of another Person that is guaranteed by such
Person or one of its Subsidiaries or secured by a Lien on assets of such Person
or one of its Subsidiaries, whether or not such guarantee or Lien is called
upon, plus (d) the product of (1) all dividends, whether paid or accrued
and whether or not in cash, on any series of preferred stock of such Person or
any of its Subsidiaries, other than dividends on Capital Stock payable solely
in Capital Stock of the Borrower (other than Disqualified Stock) or to the
Borrower or a Subsidiary of the Borrower, times (2) a fraction, the
numerator of which is one and the denominator of which is one minus the then
current combined federal, state and local statutory tax rate of such Person,
expressed as a decimal, in each case, determined on a consolidated basis in
accordance with GAAP, minus (e) charges attributable to the
amortization of expenses relating to the issuance of the Senior Notes, the EIS,
the Senior Subordinated Notes and the other transactions contemplated herein,
incurred within 180 days of the Closing Date, minus (f) charges
incurred within 180 days of the Closing Date attributable to the write-off of
bond discount and the write-off of deferred financing fees and costs relating
to the pay-off of existing Indebtedness in an amount not to exceed $18,200,000.

 

“Consolidated
Interest Coverage Ratio”:  for any
period, the ratio of (a) Consolidated EBITDA of the Borrower and its
Subsidiaries for such period to (b) Consolidated Interest Expense of the
Borrower and its Subsidiaries for such period payable in cash.

 

“Consolidated
Interest Expense”:  of any Person for
any period, (a) total interest expense (including that attributable to Capital
Lease Obligations) of such Person and its Subsidiaries for such period with
respect to all outstanding Indebtedness of such Person and its Subsidiaries
(including, without limitation, all commissions, discounts and other fees and
charges owed by such Person with respect to letters of credit and bankers’
acceptance financing and net costs of such Person under Hedge Agreements in
respect of interest rates to the extent such net costs are allocable to such
period in accordance with GAAP, but excluding any deferred financing costs
relating to the incurrence of any Indebtedness) minus (b) the total interest
income of such Person for such period, determined in accordance with GAAP; provided
that (i) when the term “Consolidated Interest Expense” is used in the
calculation of the Consolidated Interest Coverage Ratio for any period,
Consolidated Interest Expense shall include, on a pro  forma
basis, interest expense in respect of any Indebtedness incurred in connection
with any acquisition of an Acquired Property during such period (assuming
incurrence of such Indebtedness at the beginning of such period) and shall
exclude, on a pro  forma basis, interest expense in respect of any
Indebtedness repaid in connection with a Disposition during such period
(assuming repayment of such Indebtedness at the beginning of such period) and 

 

8

 

(ii) (a) consolidated
interest expense for the four quarter period ending December 31, 2004
shall equal consolidated interest expense for the fiscal quarter ending
December 31, 2004 multiplied by 4, (b) consolidated interest
expense for the four quarter period ending March 31, 2005 shall equal the sum
of consolidated interest expense for the fiscal quarters ending December 31,
2004 and March 31, 2005 multiplied by 2 and (c) consolidated interest
expense for the four quarter period ending June 30, 2005 shall equal the sum of
consolidated interest expense for the fiscal quarters ending December 31, 2004,
March 31, 2005 and June 30, 2005 multiplied by 4/3.  Consolidated Interest Expense shall be
deemed to include all amounts characterized as of the Closing Date as interest
in accordance with GAAP as in effect on the Closing Date, whether or not such
payment is characterized as interest under GAAP thereafter.

 

“Consolidated
Leverage Ratio”:  as at the last day
of any period of four consecutive fiscal quarters, the ratio of (a)
Consolidated Total Debt on such day to (b) Consolidated EBITDA of the
Borrower and its Subsidiaries for such period.

 

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

 

“Consolidated
Senior Debt”:  all Consolidated Total
Debt other than the Senior Subordinated Notes.

 

“Consolidated
Senior Leverage Ratio”:  as of the
last day of any period of four consecutive fiscal quarters, the ratio of (a)
Consolidated Senior Debt on such day to (b) Consolidated EBITDA of the
Borrower and its Subsidiaries for such period.

 

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

 

“Continuing
Directors”:  the directors of the
Borrower on the Closing Date, after giving effect to the transactions
contemplated hereby, and each other director of the Borrower, if, in each case,
such other director’s nomination for election to the board of directors of the
Borrower is recommended by at least 50% of the then Continuing Directors.

 

9

 

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

 

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

 

“Default”:  any of the events specified in
Section 7, whether or not any requirement for the giving of notice, the
lapse of time, or both, has been satisfied.

 

“Derivatives
Counterparty”:  as defined in Section
6.6.

 

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

 

“Disqualified
Stock”:  any Capital Stock that, by
its terms (or by the terms of any security into which it is convertible, or for
which it is exchangeable, in each case, at the option of the holder of such
Capital Stock), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable
at the option of the holder of such Capital Stock, in whole or in part, on or
prior to the date that is 91 days after the date on which the Senior Notes
mature.  Notwithstanding the preceding
sentence, any Capital Stock that would constitute Disqualified Stock solely
because the holders of such Capital Stock have the right to require the
Borrower to repurchase such Capital Stock upon the occurrence of a change of
control or an asset sale will not constitute Disqualified Stock if the terms of
such Capital Stock provide that the Borrower may not repurchase or redeem any
such Capital Stock pursuant to such provisions unless such repurchase or
redemption is permitted under Section 6.6.

 

“Documentation
Agent”:  as defined in the preamble
hereto.

 

“Dollar Equivalent”:  at any time, as to any amount denominated in
an Alternative Currency, the equivalent amount in Dollars as determined on the
basis of the Exchange Rate for the purchase of Dollars with such Alternative
Currency as of the most recent Calculation Date.

 

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

 

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

 

10

 

“EIS”:
enhanced income securities which are the units of the Borrower comprised of
Senior Subordinated Notes and common stock, to be issued by the Borrower on the
Closing Date or thereafter pursuant to the terms of the Securities Holders
Agreement.

 

“EIS
Documentation”: the Securities Holders Agreement, the Senior Subordinated
Note Indenture and all other instruments, agreements and other documentation
entered into by the Borrower or its Subsidiaries in connection with the
issuance of the EIS, as the same may be amended, supplemented or otherwise
modified from time to time in accordance with the terms hereof.

 

“Environmental
Laws”:  any and all laws, rules,
orders, regulations, statutes, ordinances, enforceable guidelines, codes,
decrees, or other legally enforceable requirements (including, without
limitation, common law) of any international authority, foreign government, the
United States, or any state, local, municipal or other governmental authority,
regulating, relating to or imposing liability or standards of conduct
concerning protection of the environment or of human health, or employee health
and safety, as has been, is now, or may at any time hereafter be, in effect.

 

“Environmental
Permits”:  any and all permits,
licenses, approvals, registrations, notifications, exemptions and other
authorizations required under any Environmental Law.

 

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

 

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

 

“Eurodollar
Base Rate”:  with respect to each day
during each Interest Period pertaining to a Eurodollar Loan, the rate per annum
determined on the basis of the rate for deposits in Dollars for a period equal
to such Interest Period commencing on the first day of such Interest Period
appearing on Page 3750 of the Telerate screen as of 11:00 A.M., London time,
two Business Days prior to the beginning of such Interest Period.  In the event that such rate does not appear
on Page 3750 of the Telerate screen (or otherwise on such screen), the “Eurodollar
Base Rate” for purposes of this definition shall be determined by reference
to such other comparable publicly available service for displaying eurodollar
rates as may be selected by the Administrative Agent.

 

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

 

11

 

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

 

	
  Eurodollar
  Base Rate

  
	
  1.00- Eurocurrency Reserve Requirements

  

 

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

 

“Event of
Default”:  any of the events
specified in Section 7, provided that any requirement for the giving of
notice, the lapse of time, or both, has been satisfied.

 

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

 

“Exchange Rate”:  on any day, with respect to any Alternative
Currency, the spot rate at which Dollars are offered on such day by the Foreign
Currency L/C Issuing Lender in New York, New York (or such other location
selected by the Foreign Currency L/C Issuing Lender) for such Alternative
Currency.

 

“Excluded
Foreign Subsidiaries”:  any Foreign
Subsidiary in respect of which the pledge of all of the Capital Stock of such
Subsidiary as Collateral would, in the good faith judgment of the Borrower,
result in adverse tax consequences to the Borrower.

 

“Existing
Credit Agreement”:  the Amended and
Restated Revolving Credit Agreement, dated as of August 21, 2003, among B&G
Foods Holdings Corp., B&G Foods, Inc., the several banks and other
financial institutions or entities from time to time parties thereto, Lehman
Brothers Inc., as sole advisor, sole lead arranger and sole bookrunner, Lehman
Commercial Paper Inc., as administrative agent, each of The Bank of New York
and CIT Lending Services Corporation, as co-documentation agent, and Fleet
National Bank, as syndication agent.

 

“Existing
Issuing Lender”:  The Bank of New
York, as issuer of the Existing Letters of Credit.

 

“Existing
Letters of Credit”: the letters of credit described in Annex B.

 

“Fair
Market Value”: the value that would be paid by a willing buyer to an
unaffiliated willing seller in a transaction not involving distress or
necessity of either party, determined in good faith by the board of directors
of the Borrower.

 

“Federal
Funds Effective Rate”:  for any day,
the weighted average of the rates on overnight federal funds transactions with
members of the Federal Reserve System arranged by federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of
New York, or, if such rate is not so published for any day

 

12

 

which is a
Business Day, the average of the quotations for the day of such transactions
received by the Administrative Agent from three federal funds brokers of
recognized standing selected by it.

 

“Foreign
Currency L/C Issuing Lender”: with respect to any Permitted Foreign
Currency Letters of Credit, the issuer thereof that, at the time such Permitted
Foreign Currency Letter of Credit was issued, was the Issuing Lender hereunder.

 

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

 

“Funded
Debt”:  as to any Person, all
Indebtedness of such Person of the types described in clauses (a) through (e)
of the definition of “Indebtedness” in this Section.

 

“Funding
Office”:  the office specified from
time to time by the Administrative Agent as its funding office by notice to the
Borrower and the Lenders.

 

“GAAP”:  generally accepted accounting principles in
the United States of America as in effect from time to time, except that for
purposes of Section 6.1, GAAP shall be determined on the basis of such
principles in effect on the date hereof and consistent with those used in the
preparation of the most recent audited financial statements referred to in
Section 3.1(b).

 

“Governmental
Authority”:  any nation or
government, any state or other political subdivision thereof and any entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government.

 

“Guarantee
and Collateral Agreement”:  the
Guarantee and Collateral Agreement to be executed and delivered by the Borrower
and each Subsidiary Guarantor, substantially in the form of Exhibit A, as the
same may be amended, supplemented or otherwise modified from time to time.

 

“Guarantee
Obligation”:  as to any Person (the “guaranteeing
person”), any obligation of (a) the guaranteeing person or (b) another
Person (including, without limitation, any bank under any letter of credit), if
to induce the creation of such obligation of such other Person the guaranteeing
person has issued a reimbursement, counterindemnity or similar obligation, in
either case guaranteeing or in effect guaranteeing any Indebtedness, leases,
dividends or other obligations (the “primary obligations”) of any other
third Person (the “primary obligor”) in any manner, whether directly or
indirectly, including, without limitation, any obligation of the guaranteeing
person, whether or not contingent, (i) to purchase any such primary obligation
or any Property constituting direct or indirect security therefor, (ii) to
advance or supply funds (1) for the purchase or payment of any such primary
obligation or (2) to maintain working capital or equity capital of the primary
obligor or otherwise to maintain the net worth or solvency of the primary
obligor, (iii) to purchase Property, securities or services primarily for the
purpose of assuring the owner of any such primary obligation of the ability of
the primary obligor to make payment of such primary obligation or (iv)

 

13

 

otherwise to
assure or hold harmless the owner of any such primary obligation against loss
in respect thereof; provided, however, that the term Guarantee
Obligation shall not include endorsements of instruments for deposit or
collection in the ordinary course of business. 
The amount of any Guarantee Obligation of any guaranteeing person shall
be deemed to be the lower of (a) an amount equal to the stated or determinable
amount of the primary obligation in respect of which such Guarantee Obligation
is made and (b) the maximum amount for which such guaranteeing person may be
liable pursuant to the terms of the instrument embodying such Guarantee
Obligation, unless such primary obligation and the maximum amount for which
such guaranteeing person may be liable are not stated or determinable, in which
case the amount of such Guarantee Obligation shall be such guaranteeing person’s
maximum reasonably anticipated liability in respect thereof as determined by
the Borrower in good faith.

 

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

 

“Hedge
Agreements”:  with respect to any
Person or its Subsidiaries, all interest rate or currency swaps, caps or collar
agreements or similar arrangements entered into by such Person or its
Subsidiaries providing for protection against fluctuations in interest rates or
currency exchange rates or the exchange of nominal interest obligations, either
generally or under specific contingencies.

 

“Hedging
Obligations”:  with respect to any
specified Person, the obligations of such Person under Hedge Agreements.

 

“Indebtedness”:  of any Person at any date, without
duplication, (a) all indebtedness of such Person for borrowed money, (b) all
obligations of such Person for the deferred purchase price of Property or
services (other than an accrued expense, trade payables or any similar
obligation to trade creditors incurred in the ordinary course of such Person’s
business), (c) all obligations of such Person evidenced by notes, bonds,
debentures or other similar instruments, (d) all indebtedness created or
arising under any conditional sale or other title retention agreement with
respect to Property acquired by such Person (even though the rights and
remedies of the seller or lender under such agreement in the event of default
are limited to repossession or sale of such Property), (e) all Capital
Lease Obligations of such Person, (f) all obligations of such Person,
contingent or otherwise, as an account party or applicant under acceptance,
letter of credit or similar facilities, (g) all obligations of such Person,
contingent or otherwise, to purchase, redeem, retire or otherwise acquire for
value any Capital Stock of such Person (other than pursuant to clause (k) of
this definition), (h) all Guarantee Obligations of such Person in respect of
obligations of the kind referred to in clauses (a) through (g) above; (i) all
obligations of the kind referred to in clauses (a) through (h) above secured by
(or for which the holder of such obligation has an existing right, contingent
or otherwise, to be secured by) any Lien on Property (including, without
limitation, accounts and contract rights) owned by such Person, whether or not
such Person has assumed or become liable for the payment of such obligation (provided
that, if such Person has not assumed or become liable for the payment of such
obligation, the amount of Indebtedness constituted by such obligation shall be
deemed to be the lesser of (i) the stated amount thereof or (ii) the Fair
Market Value of the Property encumbered by such Lien), (j) for the purposes

 

14

 

of Section
7(e) only, all Hedging Obligations of such Person and (k) the liquidation value
of any preferred Capital Stock of such Person or its Subsidiaries held by any
Person other than such Person and its Wholly Owned Subsidiaries if such
preferred Capital Stock is mandatorily redeemable prior to the date which is 91
days after the Revolving Credit Termination Date.

 

“Indemnified
Liabilities”:  as defined in Section
9.5.

 

“Indemnitee”:  as defined in Section 9.5.

 

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

 

“Insolvent”:  pertaining to a condition of Insolvency.

 

“Intellectual
Property”:  the collective reference
to all rights, priorities and privileges relating to intellectual property,
whether arising under United States, multinational or foreign laws or
otherwise, including, without limitation, copyrights, copyright licenses,
patents, patent licenses, trademarks, trademark licenses, technology, know-how
and processes, and all rights to sue at law or in equity for any infringement
or other impairment thereof, including the right to receive all proceeds and
damages therefrom.

 

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

 

“Interest
Period”:  as to any Eurodollar Loan,
(a) initially, the period commencing on the borrowing or conversion date, as
the case may be, with respect to such Eurodollar Loan and ending one, two,
three or six months thereafter, as selected by the Borrower in its notice of
borrowing or notice of conversion, as the case may be, given with respect
thereto; and (b) thereafter, each period commencing on the last day of the next
preceding Interest Period applicable to such Eurodollar Loan and ending one,
two, three or six months thereafter, as selected by the Borrower by irrevocable
notice to the Administrative Agent not less than three Business Days prior to
the last day of the then current Interest Period with respect thereto; provided
that, all of the foregoing provisions relating to Interest Periods are subject
to the following:

 

(i)   if any Interest Period would otherwise end on a day
that is not a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless the result of such extension would be to carry
such Interest

 

15

 

Period into
another calendar month in which event such Interest Period shall end on the
immediately preceding Business Day;

 

(ii)   any Interest Period that would otherwise extend beyond
the Revolving Credit Termination Date shall end on the Revolving Credit
Termination Date;

 

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

 

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

 

“Investments”:  as defined in Section 6.8.

 

“Issuing
Lender”:  the Existing Issuing Lender
and any other Lender selected by the Borrower, with the consent of such Lender
and the Administrative Agent, to act as Issuing Lender, in its capacity as
issuer of any Letter of Credit.

 

“L/C
Commitment”:  $10,000,000.

 

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

 

“L/C
Obligations”:  at any time, an amount
equal to the sum of (a) the aggregate then undrawn and unexpired amount of the
then outstanding Letters of Credit and (b) the aggregate amount of drawings
under Letters of Credit that have not then been reimbursed pursuant to Section
2.23.

 

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

 

“Lender
Addendum”:  with respect to any
initial Lender, a Lender Addendum, substantially in the form of Exhibit I, to
be executed and delivered by such Lender on the Closing Date as provided in
Section 9.17.

 

“Lenders”:  as defined in the preamble hereto.

 

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

 

“Lien”:  any mortgage, pledge, hypothecation,
assignment, deposit arrangement, encumbrance, lien (statutory or other), charge
or other security interest or any preference, priority or other security
agreement or preferential arrangement of any kind or nature whatsoever
(including, without limitation, any conditional sale or other title retention

 

16

 

agreement and
any capital lease having substantially the same economic effect as any of the
foregoing).

 

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

 

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

 

“Loan
Parties”:  the Borrower and each
Subsidiary of the Borrower which is a party to a Loan Document.

 

“Mark-to-Market
Adjustment”:  any non-cash expense or
income resulting from current or future mark-to-market accounting that the
Borrower may apply with respect to any EIS, shares of the Borrower’s Class A
common stock, shares of Borrower’s Class B common stock or the Borrower’s
Senior Subordinated Notes issued in connection with the original issuance of
EIS on the Closing Date or at any time thereafter.

 

“Material
Adverse Effect”:  a material adverse
effect on (a) the business, assets, property or financial condition of the
Borrower and its Subsidiaries taken as a whole or (b) the validity or enforceability
of this Agreement or any of the other Loan Documents or the rights or remedies
of the Administrative Agent or the Lenders hereunder or thereunder.

 

“Material
Environmental Amount”:  an amount or
amounts payable by the Borrower and/or any of its Subsidiaries, in the
aggregate in excess of $2,000,000 in respect of any one occurrence, for:  costs to comply with any Environmental Law;
costs of any investigation, and any remediation, of any Material of Environmental
Concern; and compensatory damages (including, without limitation damages to
natural resources), punitive damages, fines, and penalties pursuant to any
Environmental Law.

 

“Materials
of Environmental Concern”:  any
gasoline or petroleum (including crude oil or any fraction thereof) or petroleum
products, polychlorinated biphenyls, urea-formaldehyde insulation, asbestos,
pollutants, contaminants, radioactivity, and any other substances or forces of
any kind, whether or not any such substance or force is defined as hazardous or
toxic under any Environmental Law, that is regulated pursuant to or could
reasonably be expected to give rise to liability under any Environmental Law.

 

“Moody’s”:  Moody’s Investors Service, Inc.

 

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

 

“New
Lenders”:  as defined in Section 9.1.

 

“New
Revolving Credit Commitments”:  as
defined in Section 9.1.

 

“New
Revolving Credit Loans”:  as defined
in Section 9.1.

 

17

 

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

 

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

 

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

 

“Obligations”:  the unpaid principal of and interest on
(including, without limitation, interest accruing after the maturity of the
Loans and Reimbursement Obligations and interest accruing after the filing of
any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding, relating to the Borrower, whether or not a
claim for post-filing or post-petition interest is allowed in such proceeding)
the Loans, the Reimbursement Obligations and all other obligations and
liabilities of the Borrower to the Administrative Agent or to any Lender or any
Qualified Counterparty or any Foreign Currency L/C Issuing Lender, whether
direct or indirect, absolute or contingent, due or to become due, or now
existing or hereafter incurred, which may arise under, out of, or in connection
with, this Agreement, any other Loan Document, the Letters of Credit, any
Specified Hedge Agreement, any Permitted Foreign Currency Letters of Credit or
any other document made, delivered or given in connection herewith or
therewith, whether on account of principal, interest, reimbursement
obligations, fees, indemnities, costs, expenses (including, without limitation,
all fees, charges and disbursements of counsel to the Administrative Agent or
to any Lender that are required to be paid by the Borrower pursuant hereto) or
otherwise; provided, that (i) obligations of the Borrower or any
Subsidiary under any Specified Hedge Agreement or in respect of any Permitted
Foreign Currency Letter of Credit shall be secured and guaranteed pursuant to
the Security Documents only to the extent that, and for so long as, the other
Obligations are so secured and guaranteed and (ii) any release of Collateral or
Guarantors or any waiver or modification of any other provision in the Loan
Documents regarding the Collateral effected in the manner permitted by this
Agreement shall not require the consent of holders of obligations under
Specified Hedge Agreements or in respect of Permitted Foreign Currency Letters
of Credit.

 

“Old
B&G Foods, Inc.”:  B&G Foods,
Inc., a Delaware corporation, existing immediately prior to the closing
hereunder.

 

“Other
Agents”:  the collective reference to
the Documentation Agent and the Syndication Agent.

 

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

 

“Participant”:  as defined in Section 9.6(b).

 

“Payment
Office”:  the office specified from
time to time by the Administrative Agent as its payment office by notice to the
Borrower and the Lenders.

 

18

 

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

 

“Permitted
Acquisition”:  any acquisition by the
Borrower or any of its Subsidiaries of all of the Capital Stock of, or all or
substantially all of the assets constituting a business unit of, any other
Person so long as, with respect to any such acquisition, the following
conditions are satisfied:

 

(a)   no Default or Event of Default shall have occurred and
be continuing or would result from such acquisition;

 

(b)   the Borrower shall be in compliance with the financial
covenants set forth in Section 6.1, after giving pro  forma effect
to such acquisition as if it had occurred on the first day of the respective
periods measured by such covenants;

 

(c)   such acquisition shall be consistent with the Borrower’s
stated management strategy as in effect on the Closing Date, and the target of
such acquisition shall be in the same or a similar line of business as the
Borrower and its Subsidiaries;

 

(d)   unless such acquisition is consummated solely with the
proceeds of Capital Stock of the Borrower or in exchange for such Capital
Stock, the aggregate consideration for such acquisition shall not exceed
$50,000,000; provided, that the foregoing restriction in this paragraph
(d) shall not be applicable to any acquisition if the Consolidated Leverage
Ratio would be less than or equal to 5.50 to 1.0 after giving pro forma
effect to such acquisition as if it had occurred on the first day of the period
measured by the Consolidated Leverage Ratio;

 

(e)   the target of such acquisition either (i) shall have
had positive consolidated net income before interest, taxes, depreciation and
amortization, determined in accordance with GAAP (“EBITDA”) for the
period of four consecutive fiscal quarters of such target most recently ended prior
to the date of such acquisition, or (ii) shall have had positive pro  forma
EBITDA for such period (such pro  forma EBITDA to be determined in
accordance with the Borrower’s customary practices consistent with the
methodology used for acquisitions consummated in the fiscal year prior to the
Closing Date);

 

(f)   the Borrower shall have performed reasonable and
customary due diligence with respect to such acquisition and the target
thereof, including with respect to environmental matters;

 

(g)   the Borrower and/or the applicable Subsidiary shall
have obtained all material third party consents and approvals required in
connection with such acquisition;

 

(h)   environmental audits, if any, pro forma financial
statements, appraisals, if any, accounting reviews and material business due
diligence reports

 

19

 

conducted by
the Borrower with respect to the business to be acquired shall have been
delivered to Administrative Agent not less than ten Business Days prior to
consummation of such acquisition;

 

(i)   the Borrower shall have reasonably determined that it
has adequate liquidity available for working capital; and

 

(j)   substantially all of the assets so acquired are located
in the United States or Canada or, if such acquisition is structured as a
purchase of stock, the Person so acquired is organized under the laws of a
state of the United States, and substantially all of the assets owned by such
Person are located in the United States or Canada; provided, that (i)
the Borrower may acquire the stock of a Person organized under the laws of a
state of the United States whose assets are located, in whole or in part, in
Puerto Rico or Canada, if such Person becomes a Subsidiary Guarantor and grants
a security interest in its assets as contemplated by Section 5.9 and (ii) the
Borrower may acquire the stock of any Person organized under the laws of Puerto
Rico or Canada, so long as the aggregate amount of Investments made pursuant to
this clause (ii), together with Investments made as permitted by Section
6.8(m), does not exceed $10,000,000.

 

“Permitted Foreign Currency Letter of
Credit”: any letter of credit denominated in a currency other than Dollars
issued to the Borrower by the Foreign Currency L/C Issuing Lender.

 

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

 

“Plan”:  at a particular time, any employee pension
benefit plan within the meaning of Section 3(2) of ERISA and in respect of
which the Borrower or a Commonly Controlled Entity is (or, if such plan were
terminated at such time, would under Section 4069 of ERISA be deemed to be) an “employer”
as defined in Section 3(5) of ERISA.

 

“Pricing
Grid”:  the Pricing Grid attached as
Annex A.

 

“Principals”:
the members of management of the Borrower or any of its Subsidiaries as of the
Closing Date.

 

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

 

“Projections”:  as defined in Section 5.2(c).

 

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

 

20

 

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

 

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

 

“Refunded
Swing Line Loans”:  as defined in
Section 2.2.

 

“Refunding
Date”:  as defined in Section 2.2.

 

“Register”:  as defined in Section 9.6(d).

 

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

 

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

 

“Reimbursement
Obligation”:  the obligation of the
Borrower to reimburse the relevant Issuing Lender pursuant to Section 2.23 for
amounts drawn under Letters of Credit.

 

“Related
Parties”: any (a) controlling stockholder, 662/3%
(or more) owned Subsidiary, or immediate family member (in the case of an
individual) of any Principal, or (b) any trust, corporation, partnership,
limited liability company or other entity, the beneficiaries, stockholders,
partners, members, owners or Persons beneficially holding 662/3% or more controlling interest of which consist of
any one or more Principals and/or such other Persons referred to in the
immediately preceding clause (a).

 

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

 

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

 

“Required
Lenders”:  at any time, the holders
of more than 50% of the Total Revolving Credit Commitments then in effect or,
if the Revolving Credit Commitments have been terminated, the Total Revolving
Extensions of Credit then outstanding.

 

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

 

21

 

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

 

“Restricted
Payments”:  as defined in Section
6.6.

 

“Revolving
Credit Commitment”:  as to any
Lender, the obligation of such Lender to make or participate in Loans and issue
or participate in Letters of Credit, in an aggregate principal and/or face
amount not to exceed the amount set forth under the heading “Revolving Credit
Commitment” opposite such Lender’s name on Schedule 1 to the Lender Addendum
delivered by such Lender, or, as the case may be, in the Assignment and
Acceptance pursuant to which such Lender became a party hereto, as the same may
be changed from time to time pursuant to the terms hereof.  The original amount of the Total Revolving
Credit Commitments is $30,000,000.

 

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

 

“Revolving
Credit Loans”:  as defined in Section
2.1.

 

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

 

“Revolving
Credit Termination Date”:  October
14, 2009.

 

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

 

“S&P”:  Standard & Poor’s Ratings Services.

 

“SEC”:  the Securities and Exchange Commission (or
successors thereto or an analogous Governmental Authority).

 

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

 

“Securities
Holders Agreement”:  the Second
Amended and Restated Securities Holders Agreement, dated as of October 14,
2004, among the Sponsor, certain of the

 

22

 

Borrower’s
existing stockholders, certain members of the Borrower’s board of directors and
the Borrower’s executive officers, as in effect on the Closing Date.

 

“Senior
Note Indenture”:  the Indenture,
dated as of October 14, 2004 entered into by the Borrower and certain of its
Subsidiaries and The Bank of New York, as Trustee, in connection with the
issuance of the Senior Notes, together with all instruments and other
agreements entered into by the Borrower or such Subsidiaries in connection
therewith, as the same may be amended, supplemented or otherwise modified from
time to time.

 

“Senior
Notes”:  the senior notes of the
Borrower issued from time to time pursuant to the Senior Note Indenture.

 

“Senior
Subordinated Note Indenture”:  the
Indenture, dated as of October 14, 2004, entered into by the Borrower and
certain of its Subsidiaries and The Bank of New York, as Trustee, in connection
with the issuance of the Senior Subordinated Notes, together with all
instruments and other agreements entered into by the Borrower or such
Subsidiaries in connection therewith, as the same may be amended, supplemented
or otherwise modified from time to time in accordance with Section 6.9.

 

“Senior
Subordinated Notes”: the senior subordinated notes of the Borrower issued
from time to time pursuant to the Senior Subordinated Note Indenture.

 

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

 

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

 

“Specified
Change of Control”:  the occurrence
of (a) the direct or indirect sale, lease, 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”

 

23

 

(as that term
is used in Section 13(d)(3) the Exchange Act other than a Principal or a
Related Party of a Principal, (b) the adoption of a plan relating to the
liquidation or dissolution of the Borrower, (c) the consummation of any
transaction (including, without limitation, any merger or consolidation), the
result of which is that any “person” (as defined above), other than the
Principals and their Related Parties, becomes the “beneficial owner” (as
defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act), directly or
indirectly, of more than 50% of the Voting Stock of the Borrower, measured by
voting power rather than number of shares, or (d) the first day on which a
majority of the members of the Board of Directors of the Borrower are not
Continuing Directors.

 

“Specified
Hedge Agreement”:  any Hedge
Agreement entered into by the Borrower or any of its Subsidiaries and any
Qualified Counterparty.

 

“Sponsor”:  Bruckmann, Rosser, Sherrill & Co., L.P.

 

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

 

“Subsidiary
Guarantor”:  each Subsidiary of the
Borrower other than any Foreign Subsidiary.

 

“Swing Line
Commitment”:  the obligation of the
Swing Line Lender to make Swing Line Loans pursuant to Section 2.2 in an
aggregate principal amount at any one time outstanding not to exceed
$5,000,000.

 

“Swing Line
Lender”:  Lehman Commercial Paper
Inc., in its capacity as the lender of Swing Line Loans.

 

“Swing Line
Loans”:  as defined in Section
2.1(b).

 

“Swing Line
Participation Amount”:  as defined in
Section 2.2.

 

“Syndication
Agent”:  as defined in the preamble
hereto.

 

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

 

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

 

24

 

“Transactions
Services Agreement”: the amended and restated Transaction Services
Agreement, dated as of October 14, 2004 between Bruckmann, Rosser, Sherrill
& Co. Inc. and the Borrower, as in effect on the Closing Date.

 

“Transferee”:  as defined in Section 9.14.

 

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

 

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

 

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

 

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

 

(b)   As used herein and in the
other Loan Documents, and any certificate or other document made or delivered
pursuant hereto or thereto, accounting terms relating to the Borrower and its
Subsidiaries not defined in Section 1.1 and accounting terms partly defined in
Section 1.1, to the extent not defined, shall have the respective meanings
given to them under GAAP.

 

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

 

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

 

SECTION 2.  AMOUNT
AND TERMS OF COMMITMENTS; LETTERS OF CREDIT

 

2.1   Revolving
Credit Commitments; Swing Line Commitment.  (a)    Subject to the terms
and conditions hereof, each Lender severally agrees to make revolving credit
loans (“Revolving Credit Loans”) to the Borrower from time to time
during the Revolving Credit Commitment Period in an aggregate principal amount
at any one time outstanding which, when added to such Lender’s Revolving Credit
Percentage of the L/C Obligations and Swing Line Loans then outstanding, does
not exceed the amount of such Lender’s Revolving Credit Commitment.  During the Revolving Credit Commitment Period
the Borrower may use the Revolving Credit Commitments by borrowing, prepaying
the Revolving Credit Loans in whole or in part, and reborrowing, all in
accordance with the terms and conditions hereof.  The Revolving Credit Loans may from time to
time be Eurodollar Loans or Base Rate Loans, as determined by the Borrower and
notified to the Administrative Agent in accordance with Sections 2.2 and 2.7, provided
that no Revolving Credit Loan shall be made as a Eurodollar Loan after the day
that is one month prior to the Revolving Credit Termination Date.

 

25

 

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

 

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

 

2.2   Procedure
for Borrowing; Swing Line Loans; Refunding of Swing Line Loans.  (a)    The Borrower may
borrow Revolving Credit Loans under the Revolving Credit Commitments during the
Revolving Credit Commitment Period on any Business Day, provided that
the Borrower shall give the Administrative Agent irrevocable notice (which
notice must be received by the Administrative Agent prior to 12:00 Noon, New
York City time, (i) three Business Days prior to the requested Borrowing Date,
in the case of Eurodollar Loans, or (ii) one Business Day prior to the
requested Borrowing Date, in the case of Base Rate Loans), specifying (A) the
amount and Type of Revolving Credit Loans to be borrowed, (B) the requested
Borrowing Date and (C) in the case of Eurodollar Loans, the length of the
initial Interest Period therefor.  Any
Revolving Credit Loans made on the Closing Date shall initially be Base Rate
Loans and may be converted to Eurodollar Loans pursuant to Section 2.7.  Each borrowing under the Revolving Credit
Commitments shall be in an amount equal to (x) in the case of Base Rate Loans,
$1,000,000 or a whole multiple thereof (or, if the then aggregate Available
Revolving Credit Commitments are less than $1,000,000, such lesser amount) and
(y) in the case of Eurodollar Loans, $1,000,000 or a whole multiple of
$1,000,000 in excess thereof, provided, that the Swing Line Lender may
request, on behalf of the Borrower, borrowings under the Revolving Credit
Commitments which are Base Rate Loans in other amounts pursuant to Section
2.2(c).  Upon receipt of any such notice
from the Borrower, the Administrative Agent shall promptly notify each Lender
thereof.  Each Lender will make the amount
of its pro  rata share of each borrowing of Revolving Credit Loans
available to the Administrative Agent for the account of the Borrower at the
Funding Office prior to 12:00 Noon, New York City time, on the Borrowing Date
requested by the Borrower in funds immediately available to the Administrative
Agent.  Such borrowing will then be made
available to the Borrower by the Administrative Agent in like funds as received
by the Administrative Agent.

 

(b)   Whenever the Borrower desires
that the Swing Line Lender make Swing Line Loans it shall give the Swing Line
Lender irrevocable telephonic notice confirmed promptly in writing (which
telephonic notice must be received by the Swing Line Lender not later than 1:00
P.M., New York City time, on the proposed Borrowing Date), specifying (i) the

 

26

 

amount to be borrowed and (ii) the requested
Borrowing Date (which shall be a Business Day during the Revolving Credit
Commitment Period).  Each borrowing under
the Swing Line Commitment shall be in an amount equal to $100,000 or a whole
multiple of $100,000 in excess thereof. 
Not later than 3:00 P.M., New York City time, on the Borrowing Date
specified in a notice in respect of Swing Line Loans, the Swing Line Lender shall
make available to the Administrative Agent at the Funding Office an amount in
immediately available funds equal to the amount of the Swing Line Loan to be
made by the Swing Line Lender.  The
Administrative Agent shall make the proceeds of such Swing Line Loan available
to the Borrower on such Borrowing Date in immediately available funds.

 

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

 

(d)   If prior to the time a
Revolving Credit Loan would have otherwise been made pursuant to Section
2.2(c), one of the events described in Section 7(f) shall have occurred and be
continuing with respect to the Borrower or if for any other reason, as
determined by the Swing Line Lender in its sole discretion, Revolving Credit
Loans may not be made as contemplated by Section 2.2(c), each Lender shall, on
the date such Revolving Credit Loan was to have been made pursuant to the
notice referred to in Section 2.2(c) (the “Refunding Date”), purchase
for cash an undivided participating interest in the then outstanding Swing Line
Loans by paying to the Swing Line Lender an amount (the “Swing Line
Participation Amount”) equal to (i) such Lender’s Revolving Credit
Percentage times (ii) the sum of the aggregate principal amount of Swing
Line Loans then outstanding which were to have been repaid with such Revolving
Credit Loans.

 

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

 

27

 

(f)   Each Lender’s obligation to
make the Revolving Credit Loans referred to in Section 2.2(c) and to purchase
participating interests pursuant to Section 2.2(d) shall be absolute and
unconditional and shall not be affected by any circumstance, including, without
limitation, (i) any setoff, counterclaim, recoupment, defense or other right
which such Lender or the Borrower may have against the Swing Line Lender, the
Borrower or any other Person for any reason whatsoever; (ii) the occurrence or
continuance of a Default or an Event of Default or the failure to satisfy any
of the other conditions specified in Section 4; (iii) any adverse change in the
condition (financial or otherwise) of the Borrower; (iv) any breach of this Agreement
or any other Loan Document by the Borrower, any other Loan Party or any other
Lender; or (v) any other circumstance, happening or event whatsoever, whether
or not similar to any of the foregoing.

 

2.3   Repayment of
Loans; Evidence of Debt.  (a)    The
Borrower hereby unconditionally promises to pay to the Administrative Agent for
the account of the appropriate Lender the then unpaid principal amount of each
Loan of such Lender on the Revolving Credit Termination Date (or such earlier date
on which the Loans become due and payable pursuant to Section 7).  The Borrower hereby further agrees to pay
interest on the unpaid principal amount of the Loans from time to time
outstanding from the date hereof until payment in full thereof at the rates per
annum, and on the dates, set forth in Section 2.9.

 

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

 

(c)   The Administrative Agent, on
behalf of the Borrower, shall maintain the Register pursuant to Section 9.6(d),
and a subaccount therein for each Lender, in which shall be recorded (i) the
amount of each Loan made hereunder and any Note evidencing such Loan, the Type
thereof and each Interest Period applicable thereto, (ii) the amount of any
principal or interest due and payable or to become due and payable from the
Borrower to each Lender hereunder and (iii) both the amount of any sum received
by the Administrative Agent hereunder from the Borrower and each Lender’s share
thereof.

 

(d)   The entries made in the
Register and the accounts of each Lender maintained pursuant to Section 2.3(b)
shall, to the extent permitted by applicable law, be prima  facie
evidence of the existence and amounts of the obligations of the Borrower
therein recorded; provided, however, that the failure of any Lender
or the Administrative Agent to maintain the Register or any such account, or
any error therein, shall not in any manner affect the obligation of the
Borrower to repay (with applicable interest) the Loans made to the Borrower by
such Lender in accordance with the terms of this Agreement.

 

(e)   The Borrower agrees that,
upon the request to the Administrative Agent by any Lender, the Borrower will
execute and deliver to such Lender a promissory note of the Borrower evidencing
any Revolving Credit Loans or Swing Line Loans, as the case may be, of such
Lender, substantially in the forms of Exhibit G-1 and G-2, respectively, with
appropriate insertions as to date and principal amount; provided that
delivery of such notes shall not be a condition precedent to the making of the
Loans on the Closing Date.

 

28

 

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

 

(b)   The Borrower agrees to pay to
the Agents the fees in the amounts and on the dates agreed to in writing by the
Borrower and the Agents prior to the Closing Date.

 

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

 

2.6   Optional Prepayments.  The Borrower may at any time and from time to
time prepay the Loans, in whole or in part, without premium or penalty (except
as otherwise provided herein), upon irrevocable notice delivered to the
Administrative Agent at least three Business Days prior thereto in the case of
Eurodollar Loans and at least one Business Day prior thereto in the case of
Base Rate Loans, which notice shall specify the date and amount of prepayment
and whether the prepayment is of Eurodollar Loans or Base Rate Loans; provided,
that if a Eurodollar Loan is prepaid on any day other than the last day of the
Interest Period applicable thereto, the Borrower shall also pay any amounts
owing pursuant to Section 2.15.  Upon
receipt of any such notice the Administrative Agent shall promptly notify each
relevant Lender thereof.  If any such
notice is given, the amount specified in such notice shall be due and payable
on the date specified therein, together with (except in the case of prepayments
of Base Rate Loans) accrued interest to such date on the amount prepaid.  Partial prepayments of Revolving Credit Loans
shall be in an aggregate principal amount of $1,000,000 or a whole multiple
thereof, and partial prepayments of Swing Line Loans shall be in an aggregate
principal amount of $100,000 or a whole multiple thereof.

 

2.7   Conversion
and Continuation Options.  (a)    The
Borrower may elect from time to time to convert Eurodollar Loans to Base Rate
Loans by giving the Administrative Agent at least two Business Days’ prior
irrevocable notice of such election, provided that any such conversion
of Eurodollar Loans may only be made on the last day of an Interest Period with
respect thereto.  The Borrower may elect,
from time to time, to convert Base Rate Loans to Eurodollar Loans by giving the
Administrative Agent at least three Business Days’ prior irrevocable notice of
such election (which notice shall specify the length of the initial Interest

 

29

 

Period therefor); provided
that no Base Rate Loan may be converted into a Eurodollar Loan (i) when
any Event of Default has occurred and is continuing and the Administrative
Agent has or the Required Lenders have determined in its or their sole
discretion not to permit such conversions or (ii) after the date that is one
month prior to the Revolving Credit Termination Date.  Upon receipt of any such notice the
Administrative Agent shall promptly notify each relevant Lender thereof.

 

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

 

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

 

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

 

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

 

(c)   (i)    If
all or a portion of the principal amount of any Loan or Reimbursement
Obligations shall not be paid when due (whether at the stated maturity, by
acceleration or otherwise), all outstanding Loans and Reimbursement Obligations
(whether or not overdue) shall bear interest at a rate per annum that is equal
to (x) in the case of Loans, the rate that would otherwise be applicable
thereto pursuant to the foregoing provisions of this Section plus 2% and
(y) in the case of Reimbursement Obligations, the rate applicable to Base Rate
Loans plus 2%, and (ii) if all or a portion of any interest payable on
any Loans and Reimbursement Obligations (whether or not overdue) or any
commitment fee or other amount payable hereunder shall not be paid when due
(whether at the stated maturity, by acceleration or otherwise), such overdue
amount shall bear interest at a rate per annum equal to the rate then
applicable to Base Rate

 

30

 

Loans plus 2%, in each case, with
respect to clauses (i) and (ii) above, from the date of such non-payment until
such amount is paid in full (after as well as before judgment).

 

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

 

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

 

(b)   Each determination of an
interest rate by the Administrative Agent pursuant to any provision of this
Agreement shall be conclusive and binding on the Borrower and the Lenders in
the absence of manifest error.  The
Administrative Agent shall, at the request of the Borrower, deliver to the
Borrower a statement showing the quotations used by the Administrative Agent in
determining any interest rate pursuant to Section 2.10(a).

 

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

 

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

 

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

 

the
Administrative Agent shall give telecopy or telephonic notice thereof to the
Borrower and the relevant Lenders as soon as practicable thereafter.  If such notice is given (x) any Eurodollar
Loans requested to be made on the first day of such Interest Period shall be
made as Base Rate Loans, (y) any Revolving Credit Loans that were to have
been converted on the first day of such Interest Period to Eurodollar Loans shall
be continued as Base Rate Loans and (z) any outstanding Eurodollar Loans shall
be converted, on the last day of the then current Interest Period with respect
thereto, to Base Rate Loans.  Until such
notice has been withdrawn by the 

 

31

 

Administrative
Agent, no further Eurodollar Loans shall be made or continued as such, nor
shall the Borrower have the right to convert Revolving Credit Loans to
Eurodollar Loans.

 

2.12   Pro Rata
Treatment and Payments.  (a)    Each
borrowing by the Borrower of Revolving Credit Loans hereunder and any reduction
of the Revolving Credit Commitments of the Lenders shall be made pro  rata
according to the respective Revolving Credit Percentages of the Lenders.  Other than with respect to any substituted
Lender in accordance with Section 2.18, each payment in respect of principal or
interest in respect of the Revolving Credit Loans, each payment in respect of
commitment fees payable hereunder shall be applied to the amounts of such obligations
owing to the Lenders pro  rata according to the respective amounts
then due and owing to the Lenders.  Each
payment in respect of Reimbursement Obligations in respect of any Letter of
Credit shall be made to the Issuing Lender that issued such Letter of Credit.

 

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

 

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

 

32

 

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

 

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

 

(i)   shall subject any Lender to any tax of any kind
whatsoever with respect to this Agreement, any Letter of Credit, any
Application or any Eurodollar Loan made by it, or change the basis of taxation
of payments to such Lender in respect thereof (except for Non-Excluded Taxes
covered by Section 2.14 and changes in the rate of tax on the overall net
income of such Lender);

 

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

 

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

 

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

 

(b)   If any Lender shall have
determined that the adoption of or any change in any Requirement of Law
regarding capital adequacy or in the interpretation or application thereof or
compliance by such Lender or any corporation controlling such Lender with any
request or directive regarding capital adequacy (whether or not having the
force of law) from any Governmental Authority made subsequent to the date
hereof shall have the effect of reducing the rate of return on such Lender’s or
such corporation’s capital as a consequence of its obligations hereunder to a
level below that which such Lender or such corporation could have achieved but

 

33

 

for such adoption, change or compliance
(taking into consideration such Lender’s or such corporation’s policies with
respect to capital adequacy) by an amount deemed by such Lender to be material,
then from time to time, after submission by such Lender to the Borrower (with a
copy to the Administrative Agent) of a written request therefor, the Borrower
shall pay to such Lender such additional amount or amounts as will compensate
such Lender or such corporation for such reduction.

 

(c)   A certificate as to any
additional amounts payable pursuant to this Section submitted by any Lender to
the Borrower setting out in reasonable detail the method of determination of
such additional amounts (with a copy to the Administrative Agent) shall be
conclusive in the absence of manifest error. 
The obligations of the Borrower pursuant to this Section shall survive
the termination of this Agreement and the payment of amounts payable hereunder.

 

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

 

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

 

(c)   Whenever any Non-Excluded
Taxes or Other Taxes are payable by the Borrower, as promptly as possible
thereafter the Borrower shall send to the Administrative Agent for the account
of the Administrative Agent or relevant Lender, as the case may be, a certified
copy of an original official receipt received by the Borrower showing payment
thereof.  If the Borrower fails to pay
any Non-Excluded Taxes or Other Taxes when due to the appropriate

 

34

 

taxing authority or fails to remit to the
Administrative Agent the required receipts or other required documentary
evidence, the Borrower shall indemnify the Administrative Agent and the Lenders
for any incremental taxes, interest or penalties that may become payable by the
Administrative Agent or any Lender as a result of any such failure.  The agreements in this Section 2.14 shall
survive the termination of this Agreement and the payment of the Loans and all
other amounts payable hereunder.

 

(d)   Each Lender (or Transferee)
that is not a citizen or resident of the United States of America, a
corporation, partnership or other entity created or organized in or under the
laws of the United States of America (or any jurisdiction thereof), or any
estate or trust that is subject to federal income taxation regardless of the
source of its income (a “Non-U.S. Lender”) shall deliver to the Borrower
and the Administrative Agent (and, in the case of a Participant or a Lender
participating in a conduit financing arrangement, as defined in Section 7701(1)
of the Code and the regulations thereunder (a “Conduit Financing Arrangement”)
(such Lender, a “Conduit Lender”), also to the Lender from which the
related participation shall have been purchased or from which the designation
of such Conduit Lender was made, as the case may be) two copies of either U.S.
Internal Revenue Service Form W-8BEN, Form W-8ECI or Form W-8IMY, or, in the
case of a Non-U.S. Lender claiming exemption from U.S. federal withholding tax
under Section 871(h) or 881(c) of the Code with respect to payments of “portfolio
interest” a statement substantially in the form of Exhibit H and a Form W-8BEN
or Form W-8IMY, or any subsequent versions thereof or successors thereto
properly completed and duly executed by such Non-U.S. Lender claiming complete
exemption from, or a reduced rate of, U.S. federal withholding tax on all
payments by the Borrower under this Agreement and the other Loan
Documents.  Such forms shall be delivered
by each Non-U.S. Lender on or before the date it becomes a party to this
Agreement (or, in the case of any Participant, on or before the date such
Participant purchases the related participation).  In addition, each Non-U.S. Lender shall
deliver such forms promptly upon the obsolescence or invalidity of any form
previously delivered by such Non-U.S. Lender. 
Each Non-U.S. Lender shall promptly notify the Borrower at any time it
determines that it is no longer in a position to provide any previously
delivered certificate to the Borrower (or any other form of certification
adopted by the U.S. taxing authorities for such purpose).  Notwithstanding any other provision of this
paragraph, a Non-U.S. Lender shall not be required to deliver any form pursuant
to this paragraph that such Non-U.S. Lender is not legally able to
deliver.  If any Non-U.S. Lender provides
a Form W-8IMY, such Non-U.S. Lender must also attach the additional
documentation that must be transmitted with Form W-8IMY, including the
appropriate forms described in this Section 2.14(d).  A Conduit Lender shall provide two copies of
the appropriate withholding statements for all participants and parties to a
potential Conduit Financing Arrangement to the Borrower and the Administrative
Agent on or before the date of commencement of the potential Conduit Financing
Arrangement.

 

(e)   A Lender that is entitled to
an exemption from or reduction of non-U.S. withholding tax under the law of the
jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall
deliver to the Borrower (with a copy to the Administrative Agent), at the time
or times prescribed by applicable law or reasonably requested by the Borrower,
such properly completed and executed documentation prescribed by applicable law
as will permit such payments to be made without withholding or at a reduced
rate, provided that such Lender is legally entitled to complete, execute
and deliver such documentation and in such Lender’s reasonable judgment such

 

35

 

completion, execution or submission would not
materially prejudice the legal position of such Lender.

 

(f)   If the Administrative Agent
or any Lender receives a refund in respect of Non-Excluded Taxes or Other Taxes
paid by the Borrower, which in the good faith judgment of such Lender is
allocable to such payment, it shall promptly pay such refund, together with any
other amounts paid by the Borrower in connection with such refunded
Non-Excluded Taxes or Other Taxes, to the Borrower, net of all out-of-pocket
expenses of such Lender incurred in obtaining such refund, provided, however,
that the Borrower agrees to promptly return such refund to the Administrative
Agent or the applicable Lender, as the case may be, if it receives notice from
the Administrative Agent or applicable Lender that the Administrative Agent or
such Lender is required to repay such refund.

 

(g)   No Conduit Lender or other
participant in a potential Conduit Financing Arrangement shall be entitled to
receive any greater amount pursuant to Section 2.14 than the financing entity
(as defined in Treas. Reg. § 1.881-3(a)(2)) would be entitled to receive
pursuant to Section 2.14.

 

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

 

2.16   Illegality.  Notwithstanding any other provision herein,
if the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof shall make it unlawful for any Lender to
make or maintain Eurodollar Loans as contemplated by this Agreement, (a) the
commitment of such Lender hereunder to make Eurodollar Loans, continue
Eurodollar Loans as such and convert Base Rate Loans to Eurodollar Loans shall forthwith
be canceled and (b) such Lender’s Revolving Credit Loans then outstanding as
Eurodollar Loans, if any, shall be converted automatically to Base Rate Loans
on the respective last days of the then

 

36

 

current Interest Periods with
respect to such Revolving Credit Loans or within such earlier period as
required by law.  If any such conversion
of a Eurodollar Loan occurs on a day which is not the last day of the then
current Interest Period with respect thereto, the Borrower shall pay to such
Lender such amounts, if any, as may be required pursuant to Section 2.15.

 

2.17   Change of Lending
Office.  Each Lender agrees that,
upon the occurrence of any event giving rise to the operation of Section 2.13,
2.14(a) or 2.16 with respect to such Lender, it will, if requested by the
Borrower, use reasonable efforts (subject to overall policy considerations of
such Lender) to designate another lending office for any Loans affected by such
event with the object of avoiding the consequences of such event; provided,
that such designation is made on terms that, in the sole judgment of such
Lender, cause such Lender and its lending office(s) to suffer no economic,
legal or regulatory disadvantage, and provided, further, that
nothing in this Section shall affect or postpone any of the obligations of the
Borrower or the rights of any Lender pursuant to Section 2.13, 2.14(a) or 2.16.

 

2.18   Substitution of
Lenders.  Upon the receipt by the
Borrower from any Lender (an “Affected Lender”) of a claim under Section
2.13, 2.14 or 2.16, the Borrower may: (a) request one more of the other Lenders
to acquire and assume all or part of such Affected Lender’s Loans,
Reimbursement Obligations and Revolving Credit Commitment; or (b) replace such
Affected Lender by designating another Lender or a financial institution that
is willing to acquire such Loans and Reimbursement Obligations and assume such
Revolving Credit Commitment;  provided
that (i) such replacement does not conflict with any Requirement of Law, (ii)
no Event of Default shall have occurred and be continuing at the time of such
replacement, (iii) the Borrower shall repay (or the replacement bank or
institution shall purchase, at par) all Loans and Reimbursement Obligations, accrued
interest and other amounts owing to such replaced Lender prior to the date of
replacement (including all amounts then owing to such replaced Lender pursuant
to Sections 2.13, 2.14 and 2.16), (iv) the Borrower shall be liable to such
replaced Lender under Section 2.15 if any Eurodollar Loan owing to such
replaced Lender shall be prepaid (or purchased) other than on the last day of
the Interest Period relating thereto, (v) the replacement bank or institution,
if not already a Lender, shall be reasonably satisfactory to the Administrative
Agent, and (vi) the replaced Lender shall be obligated to make such replacement
in accordance with the provisions of Section 9.6 (provided that the
Borrower or replacement Lender shall be obligated to pay the registration and
processing fee).

 

2.19   L/C Commitment.  (a)  Subject
to the terms and conditions hereof, each Issuing Lender, in reliance on the
agreements of the other Lenders set forth in Section 2.22(a), agrees to issue
letters of credit (the letters of credit issued on and after the Closing Date,
together with the Existing Letters of Credit, collectively, the “Letters of
Credit”) for the account of the Borrower on any Business Day during the
Revolving Credit Commitment Period in such form as may be approved from time to
time by such Issuing Lender; provided that no Issuing Lender shall have
any obligation to issue any Letter of Credit if, after giving effect to such
issuance, (i) the L/C Obligations would exceed the L/C Commitment or (ii)
the aggregate amount of the Available Revolving Credit Commitments would be
less than zero.  Each Letter of Credit
shall (i) be denominated in Dollars and (ii) expire no later than the earlier
of (x) the first anniversary of its date of issuance and (y) the date which is
five Business Days prior to the Revolving Credit Termination Date, provided
that any Letter of Credit with a one-year term may provide for the

 

37

 

renewal thereof for additional
one-year periods (which shall in no event extend beyond the date referred to in
clause (y) above).

 

(b)        No Issuing Lender shall at any time be obligated to issue
any Letter of Credit hereunder if such issuance would conflict with, or cause
such Issuing Lender or any L/C Participant to exceed any limits imposed by, any
applicable Requirement of Law.

 

2.20   Procedure
for Issuance of Letter of Credit. 
The Borrower may from time to time request that an Issuing Lender issue
a Letter of Credit by delivering to such Issuing Lender at its address for
notices specified herein an Application therefor, completed to the reasonable
satisfaction of such Issuing Lender, and such other certificates, documents and
other papers and information as such Issuing Lender may reasonably request with
respect to the requested Letter of Credit. 
Upon receipt of any Application, an Issuing Lender will process such
Application and the certificates, documents and other papers and information
delivered to it in connection therewith in accordance with its customary
procedures and shall promptly issue the Letter of Credit requested thereby (but
in no event shall any Issuing Lender be required to issue any Letter of Credit
earlier than three Business Days after its receipt of the Application therefor
and all such other certificates, documents and other papers and information
relating thereto) by issuing the original of such Letter of Credit to the
beneficiary thereof or as otherwise may be agreed to by such Issuing Lender and
the Borrower.  Promptly after issuance by
an Issuing Lender of a Letter of Credit, such Issuing Lender shall furnish a
copy of such Letter of Credit to the Borrower. 
Each Issuing Lender shall promptly furnish to the Administrative Agent,
which shall in turn promptly furnish to the Lenders, notice of the issuance of
each Letter of Credit issued by it (including the amount thereof).

 

2.21   Fees and Other Charges.  (a)    The Borrower will
pay a fee on the aggregate drawable amount of all outstanding Letters of Credit
at a per annum rate equal to the Applicable Margin then in effect with respect
to Revolving Credit Loans that are Eurodollar Loans, shared ratably among the
Lenders and payable quarterly in arrears on each L/C Fee Payment Date after the
issuance date.  In addition, the Borrower
shall pay to each Issuing Lender for its own account a fronting fee on the
aggregate drawable amount of all outstanding Letters of Credit issued by it in
an amount to be agreed upon from time to time between such Issuing Lender and
the Borrower, payable quarterly in arrears on each L/C Fee Payment Date after
the Issuance Date.

 

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

 

2.22   L/C Participations.  (a)    Each
Issuing Lender irrevocably agrees to grant and hereby grants to each L/C
Participant, and, to induce each Issuing Lender to issue Letters of Credit
hereunder, each L/C Participant irrevocably agrees to accept and purchase and
hereby accepts and purchases from each Issuing Lender, on the terms and
conditions hereinafter stated, for such L/C Participant’s own account and risk
an undivided interest equal to such L/C Participant’s Revolving Credit
Percentage in each Issuing Lender’s obligations and rights under and in respect
of each Letter of Credit issued by such Issuing Lender hereunder and the amount

 

38

 

of each draft paid by such
Issuing Lender thereunder.  Each L/C
Participant unconditionally and irrevocably agrees with each Issuing Lender
that, if a draft is paid under any Letter of Credit by such Issuing Lender for
which such Issuing Lender is not reimbursed in full by the Borrower in
accordance with the terms of this Agreement, such L/C Participant shall pay to
such Issuing Lender upon demand at such Issuing Lender’s address for notices
specified herein an amount equal to such L/C Participant’s Revolving Credit
Percentage of the amount of such draft, or any part thereof, that is not so
reimbursed.

 

(b)   If any amount required to be
paid by any L/C Participant to an Issuing Lender pursuant to Section 2.22(a) in
respect of any unreimbursed portion of any payment made by such Issuing Lender
under any Letter of Credit is paid to such Issuing Lender within three Business
Days after the date such payment is due, such L/C Participant shall pay to such
Issuing Lender on demand an amount equal to the product of (i) such amount,
times (ii) the daily average Federal Funds Effective Rate during the period
from and including the date such payment is required to the date on which such
payment is immediately available to such Issuing Lender, times (iii) a fraction
the numerator of which is the number of days that elapse during such period and
the denominator of which is 360.  If any
such amount required to be paid by any L/C Participant pursuant to Section
2.22(a) is not made available to such Issuing Lender by such L/C Participant
within three Business Days after the date such payment is due, such Issuing
Lender shall be entitled to recover from such L/C Participant, on demand, such
amount with interest thereon calculated from such due date at the rate per
annum applicable to Base Rate Loans.  A
certificate of such Issuing Lender submitted to any L/C Participant with
respect to any such amounts owing under this Section shall be conclusive in the
absence of manifest error.

 

(c)   Whenever, at any time after
an Issuing Lender has made payment under any Letter of Credit and has received
from any L/C Participant its pro  rata share of such payment in
accordance with Section 2.22(a), such Issuing Lender receives any payment
related to such Letter of Credit (whether directly from the Borrower or
otherwise, including proceeds of collateral applied thereto by such Issuing
Lender), or any payment of interest on account thereof, such Issuing Lender
will distribute to such L/C Participant its pro  rata share
thereof; provided, however, that in the event that any such
payment received by such Issuing Lender shall be required to be returned by
such Issuing Lender, such L/C Participant shall return to such Issuing Lender
the portion thereof previously distributed by such Issuing Lender to it.

 

(d)   Each Lender’s obligation to
purchase, pursuant to Section 2.22(a), such Lender’s Revolving Credit
Percentage in each Issuing Lender’s obligations and rights under and in respect
of each Letter of Credit issued by such Issuing Lender hereunder shall be
absolute and unconditional and shall not be affected by any circumstance,
including, without limitation, (i) any setoff, counterclaim, recoupment,
defense or other right which such Lender or the Borrower may have against such
Issuing Lender, the Borrower or any other Person for any reason whatsoever;
(ii) the occurrence or continuance of a Default or an Event of Default or the
failure to satisfy any of the other conditions specified in Section 4; (iii)
any adverse change in the condition (financial or otherwise) of the Borrower or
any other Loan Party; (iv) any breach of this Agreement or any other Loan
Document by the Borrower, any other Loan Party or any other Lender; or (v) any
other circumstance, happening or event whatsoever, whether or not similar to
any of the foregoing.

 

39

 

2.23   Reimbursement
Obligation of the Borrower.  The
Borrower agrees to reimburse each Issuing Lender on each date on which such
Issuing Lender notifies the Borrower of the date and amount of a draft
presented under any Letter of Credit and paid by such Issuing Lender (but in
any event no such reimbursement shall be required before the date on which Base
Rate Loans would be made (or the procedure specified in Section 2.22 would
become applicable) as described in the last two sentences of this Section) for
the amount of (a) such draft so paid and (b) any taxes, fees, charges or other
costs or expenses incurred by such Issuing Lender in connection with such
payment (the amounts described in the foregoing clauses (a) and (b) in respect
of any drawing, collectively, the “Payment Amount”).  Each such payment shall be made to such
Issuing Lender at its address for notices specified herein in lawful money of
the United States of America and in immediately available funds.  Interest shall be payable on each Payment
Amount from the date of the applicable drawing until payment in full at the
rate set forth in (i) until the second Business Day following the date of
the applicable drawing, Section 2.9(b) and (ii) thereafter, Section
2.9(c).  Each drawing under any Letter of
Credit shall (unless an event of the type described in clause (i) or (ii) of
Section 7(f) shall have occurred and be continuing with respect to the
Borrower, in which case the procedures specified in Section 2.22 for funding by
L/C Participants shall apply) constitute a request by the Borrower to the
Administrative Agent for a borrowing pursuant to Section 2.2 of Base Rate Loans
in the amount of such drawing.  The
Borrowing Date with respect to such borrowing shall be the first date on which
a borrowing of Revolving Credit Loans could be made, pursuant to Section 2.2,
if the Administrative Agent had received a notice of such borrowing at the time
of such drawing under such Letter of Credit.

 

2.24   Obligations Absolute.  The Borrower’s obligations under Sections
2.19 through 2.25 shall be absolute and unconditional under any and all
circumstances and irrespective of any setoff, counterclaim or defense to
payment that the Borrower may have or have had against any Issuing Lender, any
L/C Participant, any beneficiary of a Letter of Credit or any other
Person.  The Borrower also agrees that
each Issuing Lender and the L/C Participant shall not be responsible for, and
the Borrower’s Reimbursement Obligations under Section 2.23 shall not be
affected by, among other things, the validity or genuineness of documents or of
any endorsements thereon, even though such documents shall in fact prove to be
invalid, fraudulent or forged, or any dispute between or among the Borrower and
any beneficiary of any Letter of Credit or any other party to which such Letter
of Credit may be transferred or any claims whatsoever of the Borrower against
any beneficiary of such Letter of Credit or any such transferee.  No Issuing Lender or L/C Participant shall be
liable for any error, omission, interruption or delay in transmission, dispatch
or delivery of any message or advice, however transmitted, in connection with
any Letter of Credit, except for errors or omissions found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted
from the gross negligence or willful misconduct of such Issuing Lender.  The Borrower agrees that any action taken or
omitted by an Issuing Lender under or in connection with any Letter of Credit
issued by it or the related drafts or documents, if done in the absence of
gross negligence or willful misconduct and in accordance with the standards or
care specified in the Uniform Commercial Code of the State of New York, shall
be binding on the Borrower and shall not result in any liability of such
Issuing Lender or any L/C Participant to the Borrower.

 

2.25   Letter of Credit
Payments.  If any draft shall be
presented for payment under any Letter of Credit, the relevant Issuing Lender
shall promptly notify the Borrower of the date and amount thereof.  The responsibility of the relevant Issuing
Lender to the Borrower in

 

40

 

connection with any draft
presented for payment under any Letter of Credit issued by such Issuing Lender
shall, in addition to any payment obligation expressly provided for in such
Letter of Credit, be limited to determining that the documents (including each
draft) delivered under such Letter of Credit in connection with such
presentment are substantially in conformity with such Letter of Credit.

 

2.26   Applications.  To the extent that any provision of any
Application related to any Letter of Credit is inconsistent with the provisions
of Sections 2.19 through 2.25, the provisions of Sections 2.19 through 2.25
shall apply; provided, however, that any term, condition or
provision of any Application which is in addition to, or the subject matter of
which is not in, part of or covered by, the provisions of Sections 2.19 through
2.25 shall not be considered as being or deemed to be in conflict with or
inconsistent with the provisions of Sections 2.19 through 2.25.

 

SECTION
3.  REPRESENTATIONS AND WARRANTIES

 

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

 

3.1   Financial Condition.  (a)  The unaudited pro  forma
consolidated balance sheet of the Borrower and its consolidated
Subsidiaries as at July 3, 2004 (including the notes thereto) (the “Pro
Forma Balance Sheet”), copies of which have heretofore been furnished to
each Lender, has been prepared giving effect (as if such events had occurred on
such date) to (i) the Loans to be made hereunder, if any, on the Closing
Date and the use of proceeds thereof and (ii) the payment of fees and
expenses in connection with the foregoing. 
The Pro Forma Balance Sheet has been prepared based on the best
information available to the Borrower as of the date of delivery thereof, and
presents fairly on a pro forma basis the estimated financial condition of
Borrower and its consolidated Subsidiaries as at July 3, 2004, assuming that
the events specified in the preceding sentence had actually occurred at such
date.

 

(b)   The audited consolidated
balance sheets of the Borrower as at December 29, 2001, December 28, 2002 and
January 3, 2004, and the related consolidated statements of income and of cash
flows for the fiscal years ended on such dates, reported on by and accompanied
by an unqualified report from KPMG LLP, present fairly the consolidated
financial condition of the Borrower as at such date, and the consolidated
results of its operations and its consolidated cash flows for the respective
fiscal years then ended.  The unaudited
consolidated balance sheet of the Borrower as at July 3, 2004, and the related
unaudited consolidated statements of income and cash flows for the twenty-six
week period ended on such date, present fairly the consolidated financial
condition of Borrower as at such date, and the consolidated results of its
operations and its consolidated cash flows for the twenty-six week period then
ended (subject to normal year-end audit adjustments).  All such financial statements, including the
related schedules and notes thereto, have been prepared in accordance with GAAP
applied consistently throughout the periods involved (except as approved by the
aforementioned firm of accountants and disclosed therein and subject, in the
case of the financial statements as of and for the period ended July 3, 2004,
to normal year end audit adjustments and the absence of notes).  The Borrower and its Subsidiaries do not have
any material Guarantee Obligations, contingent

 

41

 

liabilities and liabilities for taxes, or any
long-term leases or unusual forward or long-term commitments, including,
without limitation, any interest rate or foreign currency swap or exchange
transaction or other obligation in respect of derivatives, that are not
reflected in the most recent financial statements referred to in this
paragraph.  During the period from
January 3, 2004, to and including the date hereof there has been no Disposition
by the Borrower of any material part of its business or Property.

 

3.2   No Change.  Since January 3, 2004, there has been no
development or event that has had or could reasonably be expected to have a Material
Adverse Effect.

 

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

 

3.4   Corporate
Power; Authorization; Enforceable Obligations.  Each Loan Party has the corporate or business
trust power and authority, and the legal right, to make, deliver and perform
the Loan Documents to which it is a party and, in the case of the Borrower, to
borrow and obtain other extensions of credit hereunder.  Each Loan Party has taken all necessary
corporate action to authorize the execution, delivery and performance of the
Loan Documents to which it is a party and, in the case of the Borrower, to
authorize the borrowings and other extensions of credit on the terms and conditions
of this Agreement.  No consent or
authorization of, filing with, notice to or other act by or in respect of, any
Governmental Authority or any other Person is required in connection with the
borrowings and other extensions of credit hereunder or with the execution,
delivery, performance, validity or enforceability of this Agreement or any of
the other Loan Documents, except (i) consents, authorizations, filings and
notices described in Schedule 3.4, which consents, authorizations, filings and
notices have been obtained or made and are in full force and effect, (ii) the
filings referred to in Section 3.19 and (iii) consents, notices and filings
which the failure to make or obtain could not reasonably be expected to have a
Material Adverse Effect.  Each Loan
Document has been duly executed and delivered on behalf of each Loan Party
party thereto.  This Agreement
constitutes, and each other Loan Document upon execution will constitute, a
legal, valid and binding obligation of each Loan Party party thereto,
enforceable against each such Loan Party in accordance with its terms, except
as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

 

3.5   No Legal Bar.  The execution, delivery and performance of
this Agreement and the other Loan Documents, the issuance of Letters of Credit,
borrowings hereunder and the use of the proceeds thereof will not violate any
Requirement of Law or any Contractual Obligation of the Borrower or any of its
Subsidiaries and will not result in, or require, the

 

42

 

creation or imposition of any
Lien on any of their respective properties or revenues pursuant to any
Requirement of Law or any such Contractual Obligation (other than the Liens
created by the Security Documents).  No Requirement
of Law or Contractual Obligation applicable on the Closing Date to the Borrower
or any of its Subsidiaries could reasonably be expected to have a Material
Adverse Effect.

 

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

 

3.7   No Default.  Neither the Borrower nor any of its
Subsidiaries is in default under or with respect to any of its Contractual
Obligations in any respect that could reasonably be expected to have a Material
Adverse Effect.  No Default or Event of
Default has occurred and is continuing.

 

3.8   Ownership of
Property; Liens.  Each of the
Borrower and each of its Subsidiaries has title in fee simple to, or a valid
leasehold interest in, all its real property, subject only to Liens and other
matters permitted by Section 6.3, and good title to, or a valid leasehold or
other property interest in, all its other Property, and none of such Property
is subject to any Lien except as permitted by Section 6.3.

 

3.9   Intellectual Property.  To the knowledge of the Borrower, the
Borrower and each of its Subsidiaries owns, or is licensed to use, all
Intellectual Property necessary and material for the conduct of its business as
currently conducted.  To the knowledge of
the Borrower, except as indicated on Schedule 3.9, no material claim has been
asserted and is pending by any Person alleging that the use of any Intellectual
Property by the Borrower and its Subsidiaries infringes on the intellectual
property rights of any Person in any material respect nor does the Borrower
know of any valid basis for any such claim.

 

3.10   Taxes.  Each of the Borrower and each of its
Subsidiaries has filed or caused to be filed all Federal, state and other
material tax returns that are required to be filed and has paid all taxes shown
to be due and payable on said returns or on any assessments made against it or
any of its Property and all other taxes, fees or other charges imposed on it or
any of its Property by any Governmental Authority (other than any the amount or
validity of which are currently being contested in good faith by appropriate
proceedings and with respect to which reserves in conformity with GAAP have
been provided on the books of the Borrower or its Subsidiaries, as the case may
be); and as of the Closing Date no tax Lien has been filed, and, to the
knowledge of the Borrower, no claim is being asserted, with respect to any such
tax, fee or other charge.

 

3.11   Federal Regulations.  No part of the proceeds of any Loans and no
Letters of Credit will be used for “purchasing” or “carrying” any “margin stock”
within the respective meanings of each of the quoted terms under Regulation U
as now and from time to time hereafter in effect or for any purpose that
violates the provisions of the Regulations of the Board.  If

 

43

 

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

 

3.12   Labor Matters.  There are no strikes or other labor disputes
against the Borrower or any of its Subsidiaries pending or, to the knowledge of
the Borrower, threatened that (individually or in the aggregate) could
reasonably be expected to have a Material Adverse Effect.  Hours worked by and payment made to employees
of the Borrower and its Subsidiaries have not been in violation of the Fair
Labor Standards Act or any other applicable Requirement of Law dealing with
such matters that (individually or in the aggregate) could reasonably be
expected to have a Material Adverse Effect. 
All payments due from the Borrower or any of its Subsidiaries on account
of employee health and welfare insurance that (individually or in the
aggregate) could reasonably be expected to have a Material Adverse Effect if
not paid have been paid or accrued as a liability on the books of the Borrower
or the relevant Subsidiary.

 

3.13   ERISA.  Neither a Reportable Event nor an “accumulated
funding deficiency” (within the meaning of Section 412 of the Code or Section
302 of ERISA) has occurred during the five-year period prior to the date on
which this representation is made or deemed made with respect to any Plan, and
each Plan has complied in all material respects with the applicable provisions
of ERISA and the Code.  No termination of
a Single Employer Plan has occurred, and no Lien in favor of the PBGC or a Plan
has arisen, during such five-year period. 
The present value of all accrued benefits under each Single Employer
Plan (based on those assumptions used to fund such Plans) did not, as of the
last annual valuation date prior to the date on which this representation is
made or deemed made, exceed the value of the assets of such Plan allocable to
such accrued benefits by more than $2,000,000. 
Neither the Borrower nor any Commonly Controlled Entity has had a
complete or partial withdrawal from any Multiemployer Plan that has resulted or
could reasonably be expected to result in a material liability under ERISA, and
neither the Borrower nor any Commonly Controlled Entity would become subject to
any liability under ERISA if the Borrower or any such Commonly Controlled
Entity were to withdraw completely from all Multiemployer Plans as of the
valuation date most closely preceding the date on which this representation is
made or deemed made that could reasonably be expected to have a Material
Adverse Effect.  No such Multiemployer
Plan is in Reorganization or Insolvent as of the Closing Date.

 

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

 

3.15   Subsidiaries.  (a)  The Subsidiaries listed on
Schedule 3.15 constitute all the Subsidiaries of the Borrower at the date
hereof.  Schedule 3.15 sets forth as of
the Closing Date the name and jurisdiction of incorporation of each Subsidiary
and, as to each such Subsidiary, the percentage of each class of Capital Stock
owned by any Loan Party.

 

(b)   Except as disclosed in the
Borrower’s Registration Statement on Form S-1, as amended, as filed on October
7, 2004 and as contained in the Securities Holders Agreement,

 

44

there are no
outstanding subscriptions, options, warrants, calls, rights or other agreements
or commitments (other than stock options granted to employees or directors and
directors’ qualifying shares) of any nature relating to any Capital Stock of
the Borrower or any Subsidiary.

 

3.16   Use of Proceeds.  The proceeds of the Loans shall be used (i)
to refinance certain existing Indebtedness of the Borrower, (ii) to finance the
working capital needs of the Borrower and its Subsidiaries in the ordinary
course of business, and (iii) for Permitted Acquisitions.  The Letters of Credit shall be used for the
working capital needs of the Borrower and its Subsidiaries.

 

3.17   Environmental Matters.  Other than exceptions to any of the
following that could not, individually and in the aggregate, reasonably be
expected to have a Material Adverse Effect:

 

(a)   the Borrower and its Subsidiaries:  (i) are, and within the period of all
applicable statutes of limitation have been, in compliance with all applicable
Environmental Laws; (ii) hold all Environmental Permits (each of which is in
full force and effect) required for any of their current operations or for any
property owned, leased, or otherwise operated by any of them; (iii) are, and
within the period of all applicable statutes of limitation have been, in
compliance with all of their Environmental Permits; and (iv) reasonably believe
that:  each of their Environmental
Permits will be timely renewed and complied with; any additional Environmental
Permits that may be required of any of them will be timely obtained and
complied with; and compliance with any Environmental Law that is or is expected
to become applicable to any of them will be timely attained and maintained.

 

(b)   Materials of Environmental Concern are not present at,
on, under, in, or about any real property now or, to the knowledge of the
Borrower and its Subsidiaries, formerly owned, leased or operated by the
Borrower or any of its Subsidiaries, or, to the knowledge of the Borrower and
its Subsidiaries, at any other location (including, without limitation, any
location to which Materials of Environmental Concern have been sent for re-use
or recycling or for treatment, storage, or disposal) which could reasonably be
expected to (i) give rise to liability of the Borrower or any of its
Subsidiaries under any applicable Environmental Law or otherwise result in
costs to the Borrower or any of its Subsidiaries, or (ii) interfere with the
Borrower’s or any of its Subsidiaries’ continued operations.

 

(c)   There is no judicial, administrative, or arbitral
proceeding (including any notice of violation or alleged violation) under or
relating to any Environmental Law to which the Borrower or any of its
Subsidiaries is, or to the knowledge of the Borrower or any of its Subsidiaries
will be, named as a party that is pending or, to the knowledge of the Borrower
or any of its Subsidiaries, threatened.

 

(d)   Neither the Borrower nor any of its Subsidiaries has
received any written request for information, or been notified that it is a
potentially responsible party under or relating to the federal Comprehensive
Environmental Response, Compensation, and

 

45

 

Liability Act
or any similar Environmental Law, or with respect to any Materials of
Environmental Concern.

 

(e)   Neither the Borrower nor any of its Subsidiaries has
entered into or agreed to any consent decree, order, or settlement or other
agreement, or is subject to any judgment, decree, or order or other agreement, in
any judicial, administrative, arbitral, or other forum for dispute resolution,
relating to compliance with or liability under any Environmental Law.

 

(f)   Neither the Borrower nor any of its Subsidiaries has
assumed or retained, by contract, any liabilities of any kind, fixed or
contingent, known or unknown, under any Environmental Law or with respect to
any Material of Environmental Concern.

 

3.18   Accuracy of
Information, etc.  No written
statement or written information (other than projections) contained in this
Agreement, any other Loan Document or any other document, certificate or
written statement furnished to the Administrative Agent or the Lenders or any
of them, by or on behalf of any Loan Party for use in connection with the
transactions contemplated by or pursuant to this Agreement or the other Loan
Documents, contained as of the date such statement, information, document or
certificate was so furnished, any untrue statement of a material fact or
omitted to state a material fact necessary in order to make the statements
contained herein or therein not misleading. 
The projections and pro forma financial information contained in the
materials referenced above are based upon good faith estimates and assumptions
believed by management of the Borrower to be reasonable at the time made, it
being recognized by the Lenders that such financial information as it relates
to future events is not to be viewed as fact and that actual results during the
period or periods covered by such financial information may differ from the
projected results set forth therein by a material amount.

 

3.19   Security Documents.  The Guarantee and Collateral Agreement is
effective to create in favor of the Administrative Agent, for the benefit of
the Lenders, a legal, valid and enforceable security interest in the Collateral
described therein and proceeds thereof. 
In the case of the Pledged Stock described in the Guarantee and
Collateral Agreement, when any stock certificates representing such Pledged
Stock are delivered to the Administrative Agent together with stock powers
endorsed to the Administrative Agent or in blank, and in the case of the other
Collateral described in the Guarantee and Collateral Agreement, when financing
statements in appropriate form are filed in the offices specified on Schedule
3.19(a)-1, (which financing statements have been duly completed and delivered
to the Administrative Agent) and such other filings as are specified on
Schedule 3 to the Guarantee and Collateral Agreement (all of which filings have
been duly completed), the Guarantee and Collateral Agreement shall constitute a
fully perfected Lien on, and security interest in, all right, title and
interest of the Loan Parties in such Collateral and the proceeds thereof, as
security for the Obligations (as defined in the Guarantee and Collateral
Agreement), in each case prior and superior in right to any other Person
(except, in the case of Collateral other than Pledged Stock, Liens permitted by
Section 6.3).  Schedule 3.19(a)-2 lists
each UCC Financing Statement (other than any naming the Administrative Agent as
secured party) that (i) names any Loan Party as debtor and (ii) will remain on
file after the Closing Date.

 

46

 

3.20   Solvency.  The Borrower and each of its Subsidiaries
are, and after giving effect to the incurrence of all Indebtedness and
obligations being incurred in connection herewith and therewith will be and
will continue to be, Solvent.

 

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

 

SECTION 4.  CONDITIONS
PRECEDENT

 

4.1   Conditions
to Initial Extension of Credit. 
The agreement of each Lender to make its initial extension of credit on
or after the Closing Date is subject to the satisfaction, prior to or
concurrently with the making of any extensions of credit on the Closing Date,
of the following conditions precedent:

 

(a)   Loan Documents. 
The Administrative Agent shall have received (i) this Agreement,
executed and delivered by a duly authorized officer of the Borrower and
(ii) the Guarantee and Collateral Agreement, executed and delivered by a
duly authorized officer of the Borrower and each Subsidiary Guarantor.

 

(b)   Issuance of the EIS and Other Indebtedness.  The Borrower shall have received gross
proceeds of at least $240,000,000 from the issuance of its Senior Notes, at
least $260,869,575 from the issuance of the EIS (which includes $124,300,000
from the issuance of the Senior Subordinated Notes), and $22,800,000 from the
issuance of Senior Subordinated Notes (not part of the EIS) in each case, on
terms satisfactory to the Lenders.  The
capital structure of each Loan Party shall be as set forth in the S-1 filed on
September 15, 2004 with the SEC.

 

(c)   Pro Forma Balance Sheet; Financial Statements.  The Lenders shall have received and be
satisfied (in form and substance) with the Pro Forma Balance Sheet and the
financial statements described in Section 3.1.

 

(d)   Approvals. 
All governmental and third party approvals reasonably necessary in the
discretion of the Administrative Agent in connection with the financing
contemplated hereby and the continuing operations of the Borrower and its
Subsidiaries shall have been obtained and be in full force and effect; all
applicable waiting periods shall have expired without any action being taken or
threatened by any competent authority which would restrain, prevent or
otherwise impose adverse conditions on the financing contemplated hereby; and
the Administrative Agent shall have received a certificate of a Responsible
Officer to the foregoing effect, which certificate shall also either (i)
certify that no such approvals are required or (ii) have attached to it copies
of any such required approvals.

 

(e)   Related Agreements.  The Administrative Agent shall have received (in a form
reasonably satisfactory to the Administrative Agent), true and correct copies,

 

47

 

certified as
to authenticity by the Borrower, of the Senior Note Indenture, the EIS
Documentation and such other documents or instruments as may be reasonably
requested by the Administrative Agent.

 

(f)   Fees. 
The Arranger and the Administrative Agent shall have received all fees
required to be paid, and all expenses for which invoices have been presented
(including reasonable fees, disbursements and other charges of counsel to the
Administrative Agent), on or before the Closing Date.  All such amounts will be paid from the issuance of the Senior
Notes  and will be
reflected in the funding instructions given by the Borrower to the
Administrative Agent on or before the Closing Date.

 

(g)   Business Plan. 
The Administrative Agent shall have received satisfactory business
projections for the Borrower and its Subsidiaries for fiscal years 2004-2008.

 

(h)   Lien Searches. 
The Administrative Agent shall have received the results of a recent
lien search in each relevant jurisdiction with respect to the Borrower and its
Subsidiaries, and such search shall reveal no liens on any of the assets of the
Borrower or its Subsidiaries except for liens permitted by Section 6.3 or liens
to be discharged on or prior to the Closing Date pursuant to documentation
satisfactory to the Administrative Agent.

 

(i)   Closing Certificate.  The Administrative Agent shall have received a certificate of
each Loan Party, dated the Closing Date, substantially in the form of Exhibit
C, with appropriate insertions and attachments.

 

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

 

(i)   the legal opinion of Dechert
LLP, counsel to the Borrower and its Subsidiaries, substantially in the form of
Exhibit F; and

 

(ii)   the legal opinion of Lisman,
Webster, Kirkpatrick & Leckerling, P.C., which opinion shall be in form and
substance satisfactory to the Administrative Agent.

 

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

 

(k)   Pledged Stock; Stock Power .  The Administrative Agent shall have received
the certificates representing the shares of Capital Stock pledged pursuant to
the Guarantee and Collateral Agreement, together with an undated stock power
for each such certificate executed in blank by a duly authorized officer of the
pledgor thereof.

 

(l)   Filings, Registrations and Recordings.  Each document (including, without
limitation, any Uniform Commercial Code financing statement) required by
the Security Documents or under law or reasonably requested by the
Administrative Agent to be filed, registered or recorded in order to create in
favor of the Administrative Agent, for the benefit of the Lenders, a perfected
Lien on the Collateral described therein, prior and

 

48

 

superior in
right to any other Person (other than with respect to Liens and other matters
expressly permitted by Section 6.3), shall be in proper form for filing,
registration or recordation.

 

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

 

(n)   Leverage Ratio. 
As of the Closing Date, the ratio of the Borrower’s Consolidated Total
Debt to the Borrower’s pro  forma Consolidated EBITDA for the four
consecutive fiscal quarters ended July 3, 2004 shall not be greater than 5.35
to 1.0.  The Lenders shall have received
a certificate from the Borrower containing all information and calculations
necessary for determining compliance with the foregoing requirement.

 

(o)   Termination of Existing Credit Agreement.  The Administrative Agent shall have received
evidence satisfactory to the Administrative Agent that the Existing Credit
Agreement shall be simultaneously terminated, all amounts thereunder shall be
simultaneously paid in full and arrangements satisfactory to the Administrative
Agent shall have been made for the termination (or assignment to the
Administrative Agent) of Liens and security interests granted in connection
therewith.

 

(p)   Solvency. 
The Lenders shall have received a Solvency Certificate executed by the
chief financial officer of the Borrower which shall document the solvency of
each Loan Party after giving effect to the transactions contemplated hereby.

 

(q)   Merger. 
The merger of Old B&G Foods, Inc. with and into B&G Foods
Holdings Corp. shall have become effective by the filing of a Certificate of
Merger with the Secretary of State of the State of Delaware, and B&G Foods
Holdings Corp. shall have filed an amendment to its certificate of
incorporation with the Secretary of the State of Delaware effectively changing
its name to B&G Foods, Inc.

 

(r)   Existing Subordinated Notes.  The Borrower shall have accepted for
purchase all validly tendered 95/8% Senior
Subordinated Notes due August 1, 2007 and the supplemental indentures with
respect to such notes shall have become operative.

 

4.2   Conditions
to Each Extension of Credit. 
The agreement of each Lender to make any extension of credit requested
to be made by it on any date (including, without limitation, its initial
extension of credit) is subject to the satisfaction of the following conditions
precedent:

 

(a)   Representations and Warranties.  Each of the representations and warranties
made by any Loan Party in or pursuant to this Agreement or any other Loan
Document shall be true and correct on and as of such date as if made on and as
of such date (unless stated to relate to an earlier date, in which case such
representations and warranties shall be true and correct as of such earlier
date).

 

49

 

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

 

(c)   Senior Debt. 
A Responsible Officer of the Borrower shall have certified in writing to
the Administrative Agent that the incurrence of Indebtedness represented by the
requested extension of credit is permitted under the Senior Subordinated Notes
Indenture.

 

Each
borrowing by and issuance of a Letter of Credit on behalf of the Borrower
hereunder shall constitute a representation and warranty by the Borrower as of
the date of such extension of credit that the conditions contained in this
Section 4.2 have been satisfied.

 

SECTION 5.  AFFIRMATIVE
COVENANTS

 

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

 

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

 

(a)   as soon as available, but in any event within 90
days or, after fiscal year end 2005, such earlier date as required by the SEC,
after the end of each fiscal year of the Borrower, a copy of the audited
consolidated balance sheet of the Borrower and its consolidated Subsidiaries as
at the end of such year and the related audited consolidated statements of
income and of cash flows for such year, setting forth in each case in
comparative form the figures as of the end of the previous year, reported on
without a “going concern” or like qualification or exception, or qualification
arising out of the scope of the audit, by KPMG, L.L.P. or other independent
certified public accountants of nationally recognized standing;

 

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

 

(c)   as soon as available, but in any event not later than
45 days after the end of each month occurring during each fiscal year of the
Borrower (other than the third, sixth, ninth and twelfth such month), the
unaudited consolidated balance sheets of the Borrower and its Subsidiaries as
at the end of such month and the related unaudited consolidated statements of
income and of cash flows for such month and the portion of the fiscal year

 

50

 

through the
end of such month, setting forth in each case in comparative form the figures
as of the end of and for the corresponding period in the previous year,
certified by a Responsible Officer as being fairly stated in all material
respects (subject to normal year-end audit adjustments);

 

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

 

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

 

(a)   concurrently with the delivery of the financial
statements referred to in Section 5.1(a), a certificate of the independent
certified public accountants reporting on such financial statements stating
that in making the examination necessary therefor no knowledge was obtained of
any Default or Event of Default, except as specified in such certificate;

 

(b)   concurrently with the delivery of any financial
statements pursuant to Section 5.1, (i) a certificate of a Responsible Officer
stating that, to the best of such Responsible Officer’s knowledge, each Loan
Party during such period has observed or performed all of its covenants and
other agreements, and satisfied every condition, contained in this Agreement
and the other Loan Documents to which it is a party to be observed, performed
or satisfied by it, and that such Responsible Officer has obtained no knowledge
of any Default or Event of Default except as specified in such certificate and
(ii) in the case of quarterly or annual financial statements, (x) a Compliance
Certificate containing all information and calculations necessary for
determining compliance by the Borrower and its Subsidiaries with the provisions
of this Agreement referred to therein as of the last day of the fiscal quarter
or fiscal year of the Borrower, as the case may be, and (y) to the extent not
previously disclosed to the Administrative Agent, a listing of any Intellectual
Property acquired by any Loan Party since the date of the most recent list
delivered pursuant to this clause (y) (or, in the case of the first such list
so delivered, since the Closing Date);

 

(c)   as soon as available, and in any event no later than 45
days after the end of each fiscal year of the Borrower, a detailed consolidated
budget for the following fiscal year (including a projected consolidated
balance sheet of the Borrower and its Subsidiaries as of the end of the
following fiscal year, and the related consolidated statements of projected
cash flow, projected changes in financial position and projected income), and,
as soon as available, significant revisions, if any, of such budget and
projections with respect to such fiscal year (collectively, the “Projections”),
which Projections shall in each case be accompanied by a certificate of a
Responsible Officer stating that such Projections are based on reasonable
estimates, information and assumptions and that such Responsible Officer has no
reason to believe that such Projections are incorrect or misleading in any
material respect;

 

51

 

(d)   within 45 days after the end of each fiscal quarter of
the Borrower, a narrative discussion and analysis of the financial condition
and results of operations of the Borrower and its Subsidiaries for such fiscal
quarter and for the period from the beginning of the then current fiscal year
to the end of such fiscal quarter, as compared to the portion of the
Projections covering such periods and to the comparable periods of the previous
year;

 

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

 

(f)   as soon as possible and in any event within 5 days of
obtaining knowledge thereof:  (i)  a description of any development, event, or
condition that, individually or in the aggregate with other developments,
events or conditions, could reasonably be expected to result in the payment by
the Borrower and its Subsidiaries, in the aggregate, of a Material
Environmental Amount; and (ii)  any
notice that any governmental authority may deny any application for an
Environmental Permit sought by, or revoke or refuse to renew any Environmental
Permit held by, the Borrower which could reasonably be expected to have a
Material Adverse Effect; and

 

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

 

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

 

5.4   Conduct
of Business and Maintenance of Existence, etc.  (a)  (i)  Preserve,
renew and keep in full force and effect its corporate existence and (ii) take
all reasonable action to maintain all rights, privileges and franchises
necessary or desirable in the normal conduct of its business, except, in each
case, as otherwise permitted by Section 6.4 and except, in the case of clause
(ii) above, to the extent that failure to do so could not reasonably be
expected to have a Material Adverse Effect; and (b) comply with all Contractual
Obligations and Requirements of Law except to the extent that failure to comply
therewith could not, in the aggregate, reasonably be expected to have a
Material Adverse Effect.

 

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

 

52

 

5.6   Inspection
of Property; Books and Records; Discussions.  (a) Keep proper books of records and account in which full, true
and correct entries in conformity with GAAP and all Requirements of Law shall
be made of all dealings and transactions in relation to its business and
activities and (b) permit representatives of any Lender upon reasonable notice
to visit and inspect any of its properties and examine and make abstracts from
any of its books and records at any reasonable time and as often as may
reasonably be desired and to discuss the business, operations, properties and
financial and other condition of the Borrower and its Subsidiaries with
officers and employees of the Borrower and its Subsidiaries and with its
independent certified public accountants.

 

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

 

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

 

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

 

(c)   any litigation or proceeding affecting the Borrower or
any of its Subsidiaries in which the amount involved is $2,000,000 or more and
not covered by insurance or in which injunctive or similar relief is sought;

 

(d)   the following events, as soon as possible and in any
event within 30 days after the Borrower knows or has reason to know
thereof:  (i) the occurrence of any
Reportable Event with respect to any Plan, a failure to make any required
contribution to a Plan, the creation of any Lien in favor of the PBGC or a Plan
or any withdrawal from, or the termination, Reorganization or Insolvency of,
any Multiemployer Plan or (ii) the institution of proceedings or the taking of
any other action by the PBGC or the Borrower or any Commonly Controlled Entity
or any Multiemployer Plan with respect to the withdrawal from, or the
termination, Reorganization or Insolvency of, any Plan that in any case under
clause (i) or (ii) may reasonably be expected to result in liability of more
than $2,000,000;

 

(e)   any amendment or other modification of any of the
documents described in Section 6.9; and

 

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

 

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

 

5.8   Environmental Laws.  (a)  Comply in all material
respects with, and ensure compliance in all material respects by all tenants
and subtenants, if any, with, all applicable

 

53

 

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

 

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

 

5.9   Additional Collateral,
etc.  (a)  With
respect to any Property acquired after the Closing Date by the Borrower or any
of its Subsidiaries (other than (v) any real property (or interest therein),
(w) any Intellectual Property to the extent creation of a security interest
therein would be contractually prohibited, (x) any Property described in
paragraph (b) of this Section, (y) any Property subject to a Lien expressly
permitted by Section 6.3(g) and (z) Property acquired by a Foreign Subsidiary)
as to which the Administrative Agent, for the benefit of the Lenders, does not
have a perfected Lien, promptly (i) execute and deliver to the Administrative
Agent such amendments to the Guarantee and Collateral Agreement or such other
documents as the Administrative Agent deems necessary or advisable to grant to
the Administrative Agent, for the benefit of the Lenders, a security interest
in such Property and (ii) take all actions necessary or advisable to grant to
the Administrative Agent, for the benefit of the Lenders, a perfected first
priority security interest in such Property (subject to Liens permitted by
Section 6.3), including without limitation, the filing of Uniform Commercial
Code financing statements in such jurisdictions as may be required by the
Guarantee and Collateral Agreement or by law or as may be requested by the
Administrative Agent.

 

(b)   With respect to any new
Subsidiary of the Borrower (other than a Foreign Subsidiary) created or
acquired after the Closing Date (which, for the purposes of this paragraph,
shall include any existing Subsidiary that ceases to be a Foreign Subsidiary),
by the Borrower or any of its Subsidiaries, promptly (i) execute and deliver to
the Administrative Agent such amendments to the Guarantee and Collateral
Agreement as the Administrative Agent deems necessary or advisable to grant to
the Administrative Agent, for the benefit of the Lenders, a perfected first
priority security interest in the Capital Stock of such new Subsidiary that is
owned by the Borrower or any of its Subsidiaries, (ii) deliver to the
Administrative Agent the certificates representing such Capital Stock, together
with undated stock powers, in blank, executed and delivered by a duly
authorized officer of the Borrower or such Subsidiary, as the case may be,
(iii) cause such new Subsidiary (A) to become a party to the Guarantee and
Collateral Agreement and (B) to take such actions reasonably necessary or
advisable to grant to the Administrative Agent for the benefit of the Lenders a
perfected first priority security interest in the Collateral described in the
Guarantee and Collateral Agreement with respect to such new Subsidiary (subject
to Liens and other matters permitted by Section 6.3 and excluding real property
and any interests therein, and Intellectual Property to the extent creation of
a security interest therein would be contractually prohibited), including,
without limitation, the filing of Uniform Commercial Code financing statements
in such jurisdictions as may be required by the Guarantee and Collateral
Agreement or by law or as may be requested by the Administrative Agent, and
(iv) if reasonably requested by the Administrative Agent, deliver to the

 

54

 

Administrative Agent
legal opinions covering matters consistent with those covered by the opinions
delivered by Dechert LLP or the applicable local counsel, as the case may be,
on the Closing Date relating to the matters described above, which opinions
shall be in form and substance, and from counsel, reasonably satisfactory to
the Administrative Agent.

 

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

 

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

 

5.11  
Post-Closing Bond Redemption.

 

Within one
Business Day of the Closing Date, call for redemption, and deposit the proceeds
necessary therefor with the trustee with respect to, all 95/8%
Senior Subordinated Notes due August 1, 2007, then outstanding.

 

SECTION 6.  NEGATIVE
COVENANTS

 

The Borrower hereby agrees that, so long as
the Revolving Credit Commitments remain in effect, any Letter of Credit remains
outstanding or any Loan or other amount is owing

 

55

 

to any Lender or the Agents hereunder, the
Borrower shall not, and shall not permit any of its Subsidiaries to, directly
or indirectly:

 

6.1   Financial
Condition Covenants.

 

(a)   Consolidated Leverage
Ratio.  Permit the Consolidated
Leverage Ratio as at the last day of any period of four consecutive fiscal
quarters of the Borrower ending with any fiscal quarter commencing with the
fiscal quarter ending December 31, 2004, to exceed 6.00 to 1.00.

 

(b)   Consolidated Senior
Leverage Ratio.  Permit the
Consolidated Senior Leverage Ratio as at the last day of any period of four
consecutive fiscal quarters of the Borrower ending with any fiscal quarter
commencing with the fiscal quarter ending December 31, 2004, to exceed
3.75 to 1.00.

 

(c)   Consolidated Interest
Coverage Ratio.  Permit the
Consolidated Interest Coverage Ratio for any period of four consecutive fiscal
quarters of the Borrower ending with any fiscal quarter commencing with the
fiscal quarter ending December 31, 2004, to be less than 1.35 to 1.00.

 

6.2   Limitation on
Indebtedness.  Create, incur,
assume or suffer to exist any Indebtedness, except:

 

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

 

(b)   Indebtedness of the Borrower to any Subsidiary and of
any Wholly Owned Subsidiary Guarantor to the Borrower or any other Subsidiary;

 

(c)   Indebtedness (including, without limitation, Capital
Lease Obligations) secured by Liens permitted by Section 6.3(g) in an aggregate
principal amount not to exceed $20,000,000 at any one time outstanding;

 

(d)   Indebtedness outstanding on the Closing Date and listed
on Schedule 6.2(d) and any refinancings, refundings, renewals or extensions
thereof (without any increase in the principal amount thereof or any shortening
of the maturity of any principal amount thereof);

 

(e)   Guarantee Obligations made in the ordinary course of
business by the Borrower or any of its Subsidiaries of obligations of the
Borrower or any Subsidiary Guarantor;

 

(f)   (i) 
Indebtedness of the Borrower in respect of the Senior Notes in an
aggregate principal amount not to exceed $240,000,000, (ii) Guarantee
Obligations of any Subsidiary Guarantor in respect of such Indebtedness and
(iii) Indebtedness of the Borrower that refinances the Senior Notes and
Guarantee Obligations of any Subsidiary Guarantor in respect of such
refinancing Indebtedness; provided, that (A) the maturity date of such
refinancing Indebtedness shall be no earlier than six months after the
Revolving Credit Termination Date, (B) the terms of such refinancing
Indebtedness,

 

56

 

taken as a
whole, shall not be materially less favorable to the Borrower and the
Subsidiary Guarantors than the terms of the Senior Notes and (C) the principal
amount of such refinancing Indebtedness does not exceed the principal amount of
Senior Notes refinanced thereby;

 

(g)   (i) 
Indebtedness of the Borrower in respect of the Senior Subordinated Notes
in an aggregate principal amount not to exceed $165,800,000, (ii) Guarantee
Obligations of any Subsidiary Guarantor in respect of such Indebtedness; provided
that, in the case of any Subsidiary Guarantor, such Guarantee
Obligations are subordinated to the obligations of such Subsidiary Guarantor
under the Guarantee and Collateral Agreement to the same extent as the
obligations of the Borrower in respect of the Senior Subordinated Notes are
subordinated to the Obligations and (iii) Indebtedness of the Borrower that
refinances Senior Subordinated Notes and Guarantee Obligations of any
Subsidiary Guarantor in respect of such refinancing Indebtedness; provided,
that (A) such refinancing Indebtedness and Guarantee Obligations shall be
subordinated to the obligations of the Borrower and the Subsidiary Guarantors
under the Loan Documents to the same extent as the obligations of the Borrower
and the Subsidiary Guarantors in respect of the Senior Subordinated Notes are
subordinated, (B) the maturity date of such refinancing Indebtedness shall be
no earlier than six months after the Revolving Credit Termination Date, (C) the
terms of such refinancing Indebtedness, taken as a whole, shall not be
materially less favorable to the Borrower and the Subsidiary Guarantors than
the terms of the Senior Subordinated Notes and (D) the principal amount of such
refinancing Indebtedness does not exceed the principal amount of the Senior
Subordinated Notes refinanced thereby;

 

(h)   Indebtedness of the Borrower or its Subsidiaries
incurred to finance the acquisition (including, without limitation, by way of
merger) of Capital Stock of any Person engaged in, or assets used or useful in,
a business permitted pursuant to Section 6.14; provided that the Fixed
Charge Coverage Ratio for the Borrower’s most recently ended four full fiscal
quarters for which internal financial statements are available immediately
preceding the date on which such Indebtedness is incurred would have been at
least 1.75:1.00, determined on a pro forma basis (including a pro forma
application of the net proceeds therefrom), as if such Indebtedness had been
incurred at the beginning of such four-quarter period;

 

(i)   Indebtedness secured by Liens permitted by Section
6.3(l); provided, that the aggregate principal amount of such
Indebtedness, plus the aggregate principal amount of Indebtedness permitted by
Section 6.2(c), shall not at any time exceed $20,000,000;

 

(j)   Indebtedness of the Borrower or its Subsidiaries
arising from the honoring by a bank or other financing institution of a check,
draft or similar instrument inadvertently drawn against insufficient funds in
the ordinary course of business;

 

(k)   Indebtedness of the Borrower or its Subsidiaries
arising from agreements providing for indemnification, adjustment of purchase
price or similar obligations, in each case, incurred in connection with the
disposition of any business, assets or a Subsidiary, other than the guaranties
of Indebtedness incurred by any Person acquiring all

 

57

 

or any portion
of such business, assets or Subsidiary for the purpose of financing such
acquisition; provided, however, that: (i) such Indebtedness is
not reflected on the balance sheet of the Borrower or any of its Subsidiaries
(contingent obligations referred to in a footnote to financing statements and
not otherwise reflected on the balance sheet will not be deemed to be reflected
on such balance sheet for purposes of this clause (i)) and (ii) the
maximum assumable liability in respect of all such Indebtedness shall at no
time exceed the gross proceeds including non-cash proceeds (the Fair Market
Value of such non-cash proceeds being measured at the time received and without
giving effect to any subsequent changes in value) actually received by the
Borrower and its Subsidiaries in connection with such disposition;

 

(l)   subordinated Indebtedness of the Borrower or any of its
Subsidiaries in an aggregate principal amount at any time outstanding not to
exceed $2,000,000 issued to directors, officers or employees of the Borrower or
any of its Subsidiaries in connection with the redemption or purchase of
Capital Stock that is not secured by any assets of the Borrower or any of its
Subsidiaries, does not require cash payments prior to the stated maturity of
the Senior Notes and contains subordination terms reasonably acceptable to the
Administrative Agent;

 

(m)   Indebtedness of the Borrower in the form of Senior
Subordinated Notes in connection with the issuance of EIS or, if there are no
EIS outstanding on the date of such issuance, the issuance of Borrower’s Class
A common stock, (and in each case, the incurrence of the related guarantees in
respect of such Senior Subordinated Notes by the Guarantors), provided  that
(i) no Default or Event of Default has occurred and is continuing at the time
of such issuance or would be caused thereby, (ii) the ratio of the aggregate
principal amount of such Senior Subordinated Notes over the number of
additional shares of the Borrower’s Class A common stock issued
contemporaneously therewith shall not exceed (A) the equivalent ratio with
respect to the EIS outstanding immediately prior to such issuance, or (B) if
there are no EIS outstanding immediately prior to such issuance, the equivalent
ratio with respect to the EIS outstanding on the Closing Date, and (iii) the
Borrower uses the proceeds of such issuance solely to repurchase shares of
Class B common stock issued on or before the Closing Date from holders thereof
in accordance with the Securities Holders Agreement;

 

(n)   Indebtedness of the Borrower consisting of outstanding
Permitted Foreign Currency Letters of Credit, the Dollar Equivalent of which
shall not exceed $1,000,000 in aggregate principal amount as of the most recent
Calculation Date; and

 

(o)   other unsecured Indebtedness, not included in clauses
(a) through (n) above, not to exceed $20,000,000 in an aggregate principal
amount (or accreted value, as applicable) at any time outstanding.

 

6.3   Limitation on Liens.  Create, incur, assume or suffer to exist any
Lien upon any of its Property, whether now owned or hereafter acquired, except
for:

 

(a)   Liens for taxes, assessments or governmental charges or
claims that are not yet delinquent or that are being contested in good faith by
appropriate proceedings

 

58

 

promptly
instituted and diligently concluded; provided that any reserve or other
appropriate provision as is required in conformity with GAAP has been made
therefor;

 

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

 

(c)   Liens (other than any Lien imposed by ERISA or any rule
or regulation promulgated thereunder) incurred or deposits made in the ordinary
course of business in connection with workers’ compensation, unemployment
insurance, and other types of social security;

 

(d)   Liens to secure the performance of statutory
obligations, surety or appeal bonds, performance bonds, deposits to secure the
performance of bids, trade contracts, government contracts, warranty
requirements, leases or licenses or other obligations of a like nature or
incurred in the ordinary course of business (including, without limitation,
landlord Liens on leased real property);

 

(e)    survey
exceptions, easements or reservations of, or rights of others for, licenses,
rights-of-way, sewers, electric lines, telegraph and telephone lines and other
similar purposes, or zoning or other restrictions as to the use of real
property that were not incurred in connection with Indebtedness and that do not
in the aggregate materially adversely affect the value of said properties or
materially impair their use in the operation of the business of such Person;

 

(f)   Liens in existence on the date hereof listed on
Schedule 6.3(f), securing Indebtedness permitted by Section 6.2(d), provided
that no such Lien is spread to cover any additional Property after the Closing
Date and that the amount of Indebtedness secured thereby is not increased;

 

(g)   Liens securing Indebtedness of the Borrower or any
other Subsidiary incurred pursuant to Section 6.2(c) to finance the acquisition
of fixed or capital assets, provided that (i) such Liens shall be
created substantially simultaneously with the acquisition of such fixed or
capital assets, (ii) such Liens do not at any time encumber any Property other
than the Property financed by such Indebtedness and (iii) the amount of
Indebtedness secured thereby is not increased;

 

(h)   Liens created pursuant to the Security Documents;

 

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

 

(j)   judgment liens which would not create any Event of
Default;

 

(k)   licenses of Intellectual Property in the ordinary
course of business;

 

59

 

(l)   liens on fixed assets existing at the time such fixed
assets are acquired in connection with a Permitted Acquisition and not created
in contemplation thereof;

 

(m)   deposits in an aggregate amount not to exceed
$1,000,000 made in the ordinary course of business to secure liability to
insurance carriers;

 

(n)   Liens in favor of customs and revenue authorities to
secure payment of customs duties in connection with the importation of goods in
the ordinary course of business and other similar Liens arising in the ordinary
course of business;

 

(o)   Liens upon specific items of inventory or other goods
and proceeds of any Person securing such Person’s obligations in respect of
bankers’ acceptances issued or created for the account of such Person to
facilitate the purchase, shipment or storage of such inventory or other goods;

 

(p)   leases or subleases granted to third Persons not
interfering with the ordinary course of business of the Borrower or any of its
Subsidiaries;

 

(q)   deposits, in an aggregate amount not to exceed $250,000
at any one time outstanding, made in the ordinary course of business to secure
liability to the Borrower’s insurance carriers;

 

(r)   Liens on assets of a Subsidiary of the Borrower that is
not a Guarantor securing Indebtedness of that Subsidiary; provided that
such Indebtedness was permitted to be incurred by Section 6.2;

 

(s)   Liens arising out of conditional sale, title retention,
consignment or similar arrangements for the sale of goods entered into by the
Borrower or any of its Subsidiaries in the ordinary course of business;

 

(t)   Liens securing Indebtedness of the Borrower or any
Subsidiary incurred pursuant to Section 6.2(h) to finance the acquisition
(including, without limitation, by way of merger) of Capital Stock of any
Person; provided that (i) such Liens shall be created substantially
simultaneously with the acquisition of such Capital Stock, (ii) such Liens do
not at any time encumber any Property other than the Capital Stock of such
acquired Person and (iii) the amount of Indebtedness secured thereby does not
exceed $30,000,000; and

 

(u)   Liens not otherwise permitted by this Section 6.3, so
long as neither (i) the aggregate outstanding principal amount of the
obligations secured thereby nor (ii) the aggregate Fair Market Value
(determined as of the date such Lien is incurred) of the assets subject thereto
exceeds $10,000,000 at any one time.

 

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

 

60

 

(a)   any Subsidiary may be merged or consolidated with or
into the Borrower (provided that the Borrower shall be the continuing or
surviving corporation) or with or into any Subsidiary Guarantor (provided
that such Subsidiary Guarantor shall be the continuing or surviving
corporation); and

 

(b)   any Subsidiary may Dispose of any or all of its assets
(upon voluntary liquidation or otherwise) to the Borrower or any Subsidiary
Guarantor.

 

6.5   Limitation
on Disposition of Property. 
Dispose of any of its Property (including, without limitation,
receivables and leasehold interests), whether now owned or hereafter acquired,
or, in the case of any Subsidiary, issue or sell any shares of such Subsidiary’s
Capital Stock to any Person, except:

 

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

 

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

 

(c)   Dispositions permitted by Section 6.4(b);

 

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

 

(e)   the Disposition of other assets in any fiscal year of
the Borrower that contributed, in the aggregate, not more than 20% of
Consolidated EBITDA for the prior fiscal year; provided that (i) in the
case of each such Disposition, the Borrower shall be in pro  forma
compliance with the financial covenants set forth in Section 6.1 after giving
effect to such Disposition (determined on the assumption that such Disposition
and the repayment of any Indebtedness resulting therefrom had occurred on the
first day of the relevant period measured by such covenants) and (ii) in the
case of any such Disposition yielding net cash proceeds of $1,000,000 or more,
the Administrative Agent shall have received a certificate of a Responsible
Officer to the effect set forth in the foregoing clause (i) and showing
calculations thereof; and

 

(f)   any Disposition constituting a Recovery Event.

 

6.6   Limitation on
Restricted Payments.  Declare or
pay any dividend (other than dividends payable solely in common stock of the
Person making such dividend) on, or make any payment on account of, or set
apart assets for a sinking or other analogous fund for, the purchase,
redemption, defeasance, retirement or other acquisition of, any Capital Stock
of the Borrower or any Subsidiary, whether now or hereafter outstanding, or
make any other distribution in respect thereof, either directly or indirectly,
whether in cash or property or in obligations of the Borrower or any
Subsidiary, or enter into any derivatives or other transaction with any
financial institution, commodities or stock exchange or clearinghouse (a “Derivatives
Counterparty”) obligating the Borrower or any Subsidiary to make payments
to such Derivatives Counterparty as a result of any change in market value of
any such Capital Stock (collectively, “Restricted Payments”), except:
(a) any Subsidiary may make Restricted Payments to the Borrower or any
Subsidiary Guarantor; and (b) so long as no Default or Event of Default has
occurred and is

 

61

 

continuing or would result
therefrom, the Borrower may make Restricted Payments if at the time such
Restricted Payment is made, such Restricted Payment is permitted to be made
under the Senior Note Indenture as in effect on the date hereof; provided that
the Borrower may make the Restricted Payments set forth in subsections
4.07(b)(1), 4.07(b)(4), 4.07(b)(9), 4.07(b)(10) and 4.07(b)(13) of the Senior
Note Indenture regardless of whether a Default or Event of Default exists.

 

6.7   Limitation
on Capital Expenditures.  Make
or commit to make any Capital Expenditure, except (a) Capital Expenditures of
the Borrower and its Subsidiaries in the ordinary course of business not exceeding
$11,000,000 for any fiscal year; provided, that (i) any such amount, if
not so expended in the fiscal year for which it is permitted, may be carried
over for expenditure in the next succeeding fiscal year and (ii) Capital
Expenditures made pursuant to this clause during any fiscal year shall be
deemed made, first, in respect of amounts permitted for such fiscal year
as provided preceding this proviso above and second, in respect of
amounts carried over from the prior fiscal year pursuant to subclause (i) above
and (b) Capital Expenditures made with the proceeds of settlement or payment in
respect of any property or casualty insurance claim, or any condemnation
proceeding relating to any asset of the Borrower or its subsidiaries.

 

6.8   Limitation on
Investments.  Make after the
Closing Date any advance, loan, extension of credit (by way of guaranty or
otherwise) or capital contribution to, or purchase any Capital Stock, bonds,
notes, debentures or other debt securities of, or any assets constituting an
ongoing business from, or make any other investment in, any other Person (all
of the foregoing, “Investments”), except:

 

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

 

(b)   investments in Cash Equivalents;

 

(c)   Investments arising in connection with the incurrence
and lending of Indebtedness permitted by Sections 6.2(b) and (e);

 

(d)   loans and advances to employees of the Borrower or any
Subsidiaries of the Borrower in the ordinary course of business (including,
without limitation, for travel, entertainment and relocation expenses) in an
aggregate amount for the Borrower and its Subsidiaries not to exceed $2,000,000
at any one time outstanding;

 

(e)   Permitted Acquisitions;

 

(f)   Investments (other than those relating to the
incurrence of Indebtedness permitted by Section 6.8(c)) by the Borrower or any
of its Subsidiaries in the Borrower or any Person that, prior to such
investment, is a Subsidiary Guarantor;

 

(g)   any Investments received (i) in compromise or
resolution of (x) obligations of trade creditors or customers that were
incurred in the ordinary course of business of the Borrower or any of its
Subsidiaries, including pursuant to any plan of reorganization or similar
arrangement upon the bankruptcy or insolvency of any trade creditor or

 

62

 

customer or
(y) litigation, arbitration or other disputes with Persons who are not
Affiliates; or (ii) in satisfaction of judgments;

 

(h)   loans by the Borrower in an aggregate principal amount
not exceeding $3,000,000 to employees of the Borrower or its Subsidiaries to
finance the sale of the Borrower’s Capital Stock by the Borrower to such
employees;

 

(i)   receivables owing to the Borrower or any Subsidiary if
created or acquired in the ordinary course of business and payable or
dischargeable in accordance with customary trade terms;

 

(j)   any Investment in any Person to the extent such
Investment consists of prepaid expenses, negotiable instruments held for
collection and lease, utility and workers’ compensation, performance and other
similar deposits made in the ordinary course of business by the Borrower of any
of its Subsidiaries;

 

(k)   Investments obtained as consideration for a Disposition
of property permitted under Section 6.5 in an aggregate amount not to exceed
25% of the total aggregate consideration received from all Dispositions of
property permitted under Section 6.5 during the term hereof;

 

(l)    Investments
consisting of Specified Hedging Obligations; and

 

(m)   other Investments in any Person having an aggregate
Fair Market Value (measured on the date each such Investment was made and
without giving effect to subsequent changes in value), when taken together with
all other Investments made pursuant to this clause (m) that are at the time
outstanding, not to exceed $10,000,000; provided that if an Investment
made pursuant to this clause (m) is made in any Person that is not a Subsidiary
at the date of the making of such Investment and such Person becomes a
Subsidiary after such date, such Investment will thereafter be deemed to have
been made pursuant to clause (f) above and shall cease to have been made
pursuant to this clause (m).

 

6.9   Limitation
on Optional Payments and Modifications of Debt Instruments, etc.  (a)  Except as permitted by
Section 6.2(g), make or offer to make any optional or voluntary payment,
prepayment, repurchase or redemption of, or otherwise voluntarily or optionally
defease, the Senior Subordinated Notes or any Indebtedness that refinances the
Senior Subordinated Notes, or segregate funds for any such payment, prepayment,
repurchase, redemption or defeasance, or enter into any derivative or other
transaction with any Derivatives Counterparty obligating the Borrower or any
Subsidiary to make payments to such Derivatives Counterparty as a result of any
change in market value of the Senior Subordinated Notes or any Indebtedness
that refinances the Senior Subordinated Notes, (b) amend, modify or otherwise
change, or consent or agree to any amendment, modification, waiver or other
change to, any of the terms of the Senior Subordinated Notes or the Senior
Subordinated Note Indenture or the indenture or instruments governing any
Indebtedness that refinances the Senior Subordinated Notes (other than any such
amendment, modification, waiver or other change which (i) would extend the
maturity or reduce the amount of any payment of principal thereof, reduce the
rate or

 

63

 

extend the date for payment of
interest thereon or relax any covenant or other restriction applicable to the
Borrower or any of its Subsidiaries and (ii) does not involve the payment of a
consent fee), (c) designate any Indebtedness (other than the Obligations and
Indebtedness under the Senior Note Indenture) as “Designated Senior
Indebtedness” for the purposes of the Senior Note Indenture or the indenture or
instruments governing any Indebtedness that refinances the Senior Subordinated
Notes or (d) amend its certificate of incorporation in any manner materially
adverse to the Lenders.

 

6.10   Limitation
on Transactions with Affiliates. 
Enter into any transaction, including, without limitation, any purchase,
sale, lease or exchange of Property, the rendering of any service or the
payment of any management, advisory or similar fees, with any Affiliate (other
than the Borrower or any Subsidiary Guarantor) unless such transaction is
(a) otherwise permitted under this Agreement, (b) in the ordinary course
of business of the Borrower or such Subsidiary, as the case may be, and
(c) upon fair and reasonable terms no less favorable to the Borrower or
such Subsidiary, as the case may be, than it would obtain in a comparable arm’s
length transaction with a Person that is not an Affiliate.  Notwithstanding the foregoing (i) so long as
no Default or Event of Default shall be in existence, the Borrower may pay
transaction fees to the Sponsor or any affiliates thereof pursuant to the
Transactions Services Agreement in connection with Permitted Acquisitions, divestitures
and financings made by a Loan Party in an amount not to exceed 1% of the total
transaction value of such Permitted Acquisitions, divestitures and financings,
as applicable, and (ii) the Borrower and its Subsidiaries may enter into the
transactions and make the payments set forth on Schedule 6.10.

 

6.11   Limitation
on Sales and Leasebacks.  Enter
into any sale and leaseback transaction; provided that the Borrower or
any Subsidiary may enter into a sale and leaseback transaction if:

 

(a)    the Borrower or
such Subsidiary, as applicable, could have (i) incurred Indebtedness in an
amount equal to the Attributable Debt relating to such sale and leaseback
transaction under Section 6.2 and (ii) incurred a Lien to secure such
Indebtedness pursuant to Section 6.3;

 

(b)   the gross cash proceeds of that sale and leaseback
transaction are at least equal to the Fair Market Value of the property that is
the subject of that sale and leaseback transaction; and

 

(c)   the transfer of assets in that sale and leaseback
transaction is permitted by Section 6.5.

 

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

 

6.13   Limitation
on Negative Pledge Clauses. 
Enter into or suffer to exist or become effective any agreement that
prohibits or limits the ability of the Borrower or any of its Subsidiaries to
create, incur, assume or suffer to exist any Lien upon any of its Property or
revenues, whether now owned or hereafter acquired, to secure the Obligations
or, in the case of

 

64

 

any guarantor, its obligations
under the Guarantee and Collateral Agreement, other than (a) this Agreement and
the other Loan Documents, (b) any agreements governing any purchase money Liens
or Capital Lease Obligations otherwise permitted hereby (in which case, any
prohibition or limitation shall only be effective against the assets financed
thereby), (c) customary non-assignment provisions in licenses or sublicenses by
the Borrower and its Subsidiaries in the ordinary course of business (in which
case such prohibition or limitation shall only be effective against the
Intellectual Property subject thereto), (d) customary provisions in joint
venture agreements and similar agreements that restrict transfers of assets of,
or equity interests in, such joint venture, (e) agreements governing
Indebtedness permitted by Sections 6.2(h) and (i) (in which case such
prohibition or limitation shall be effective only against the property acquired
thereby) and (f) agreements entered into by a Subsidiary that is not a
Guarantor governing Liens permitted by Section 6.3(q) or the Indebtedness
secured thereby (in which case such prohibition or limitation shall only be
effective against the assets of such Subsidiary subject to such Lien).

 

6.14   Limitation
on Restrictions on Subsidiary Distributions.  Enter into or suffer to exist or become effective any consensual
encumbrance or restriction on the ability of any Subsidiary to (a) make
Restricted Payments in respect of any Capital Stock of such Subsidiary held by,
or pay or subordinate any Indebtedness owed to, the Borrower or any other
Subsidiary, (b) make Investments in the Borrower or any other Subsidiary or (c) transfer
any of its assets to the Borrower or any other Subsidiary, except for such
encumbrances or restrictions existing under or by reason of (i) any
restrictions existing under the Loan Documents, (ii) any restrictions existing
under the Senior Subordinated Note Indenture and any agreements governing
Indebtedness permitted by Sections 6.2(g), to the extent such restrictions are
no more restrictive than those in the Senior Subordinated Note Indenture, (iii)
any restrictions existing under the Senior Note Indenture and any agreements
governing Indebtedness permitted by Section 6.2(f), to the extent such
restrictions are no more restrictive than those in the Senior Note Indenture,
(iv) any restrictions with respect to a Subsidiary imposed pursuant to an
agreement that has been entered into in connection with the Disposition of all
or substantially all of the Capital Stock or assets of such Subsidiary, (v)
customary net worth provisions contained in real property leases entered into
in by any Loan Party so long as such net worth provisions would not reasonably
be expected to impair materially the ability of the Loan Parties to meet their
ongoing obligations under this Agreement or any of the other Loan Documents,
and (vi) with respect to clause (c) only, (i) customary non-assignment
provisions in licenses or sublicenses by the Borrower and its Subsidiaries in
the ordinary course of business (in which case such prohibition or limitation
shall only be effective against the Intellectual Property subject thereto),
(ii) customary provisions in joint venture agreements and similar agreements
that restrict transfers of assets of, or equity interests in, such joint
venture, (iii) agreements governing Indebtedness permitted by Sections 6.2(h)
and (i) (in which case such prohibition or limitation shall be effective only
against the property acquired thereby), (iv) agreements entered into by a
Subsidiary that is not a Guarantor governing Liens permitted by Section 6.3(q)
or the Indebtedness secured thereby (in which case such prohibition or
limitation shall only be effective against the assets of such Subsidiary
subject to such Lien) and (v) any agreements governing any purchase money Liens
or Capital Lease Obligations otherwise permitted hereby (in which case, any
prohibition or limitation shall only be effective against the assets financed
thereby).

 

65

 

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

 

SECTION 7.  EVENTS
OF DEFAULT

 

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

 

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

 

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

 

(c)   Any Loan Party shall default in the observance or
performance of any agreement contained in clause (i) or (ii) of Section 5.4(a)
(with respect to the Borrower only), Section 5.7(a) or Section 6, or Section
5.6 of the Guarantee and Collateral Agreement; or

 

(d)   Any Loan Party shall default in the observance or
performance of any other agreement contained in this Agreement or any other
Loan Document (other than as provided in paragraphs (a) through (c) of this
Section), and such default shall continue unremedied for a period of 30 days;
or

 

(e)   The Borrower or any of its Subsidiaries shall (i)
default in making any payment of any principal of any Indebtedness (including,
without limitation, any Guarantee Obligation, but excluding the Loans and
Reimbursement Obligations) on the scheduled or original due date with respect
thereto; or (ii) default in making any payment of any interest on any such
Indebtedness beyond the period of grace, if any, provided in the instrument or
agreement under which such Indebtedness was created; or (iii) default in the
observance or performance of any other agreement or condition relating to any
such Indebtedness or contained in any instrument or agreement evidencing,
securing or relating thereto, or any other event shall occur or condition
exist, the effect of which default or other event or condition is to cause, or
to permit the holder or beneficiary of such Indebtedness (or a trustee or agent
on behalf of such holder or beneficiary) to cause, with the giving of notice if
required, such Indebtedness to become due prior to its stated maturity or (in
the case of any such Indebtedness constituting a Guarantee Obligation) to
become payable; provided, that a default, event or condition described
in clause (i), (ii) or (iii) of this paragraph (e) shall not at any time
constitute an Event of Default unless, at such time, one or more defaults,
events or conditions of the type described in clauses (i), (ii) and (iii) of
this paragraph (e) shall have occurred and be continuing with respect to

 

66

 

Indebtedness
the outstanding principal amount of which exceeds in the aggregate $10,000,000;
or

 

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

 

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

 

(h)   One or more judgments or decrees shall be entered
against the Borrower or any of its Subsidiaries involving for the Borrower and
its Subsidiaries taken as a whole a

 

67

 

liability (not
paid or fully covered by insurance as to which the relevant insurance company
has acknowledged coverage) of $10,000,000 or more, and all such judgments or
decrees shall not have been vacated, discharged, stayed or bonded pending
appeal within 30 days from the entry thereof; or

 

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

 

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

 

(k)   (i) a “Change of Control” as defined in the Senior Note
Indenture or the Senior Subordinated Note Indenture shall occur or (ii) a
Specified Change of Control shall occur; or

 

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

 

then, and in
any such event, (A) if such event is an Event of Default specified in clause
(i) or (ii) of paragraph (f) above with respect to the Borrower,
automatically the Revolving Credit Commitments shall immediately terminate and
the Loans hereunder (with accrued interest thereon) and all other amounts owing
under this Agreement and the other Loan Documents (including, without
limitation, all amounts of L/C Obligations, whether or not the beneficiaries of
the then outstanding Letters of Credit shall have presented the documents
required thereunder) shall immediately become due and payable, and (B) if such
event is any other Event of Default, either or both of the following actions
may be taken:  (i) with the consent of
the Required Lenders, the Administrative Agent may, or upon the request of the
Required Lenders, the Administrative Agent shall, by notice to the Borrower
declare the Revolving Credit Commitments to be terminated forthwith, whereupon
the Revolving Credit Commitments shall immediately terminate; and (ii) with the
consent of the Required Lenders, the Administrative Agent may, or upon the
request of the Required Lenders, the Administrative Agent shall, by notice to
the Borrower, declare the Loans hereunder (with accrued interest thereon) and
all other amounts owing under this Agreement and the other Loan Documents
(including, without limitation, all amounts of L/C Obligations, whether or not
the beneficiaries of the then outstanding Letters of Credit shall have
presented the documents required thereunder) to be due and payable forthwith,
whereupon the same shall immediately become due and payable.  With respect to all Letters of Credit with
respect to which presentment for honor shall not have occurred at the time of
an acceleration pursuant to this paragraph, the Borrower shall at such time
deposit in a cash collateral account opened by the Administrative Agent an amount
equal to

 

68

 

the aggregate
then undrawn and unexpired amount of such Letters of Credit.  Amounts held in such cash collateral account
shall be applied by the Administrative Agent to the payment of drafts drawn
under such Letters of Credit, and the unused portion thereof after all such
Letters of Credit shall have expired or been fully drawn upon, if any, shall be
applied to repay other obligations of the Borrower hereunder and under the
other Loan Documents.  After all such
Letters of Credit shall have expired or been fully drawn upon, all
Reimbursement Obligations shall have been satisfied and all other obligations
of the Borrower hereunder and under the other Loan Documents shall have been
paid in full, the balance, if any, in such cash collateral account shall be
returned to the Borrower (or such other Person as may be lawfully entitled
thereto).

 

SECTION 8.  THE
ADMINISTRATIVE AGENT; THE ARRANGER; THE OTHER AGENTS

 

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

 

8.2   Delegation of Duties.  The Administrative Agent may execute any of
its duties under this Agreement and the other Loan Documents by or through
agents or attorneys-in-fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties.  The Administrative Agent shall not be responsible for the
negligence or misconduct of any agents or attorneys-in-fact selected by it with
reasonable care.

 

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

 

69

 

8.4   Reliance by
Administrative Agent.  The
Administrative Agent shall be entitled to rely, and shall be fully protected in
relying, upon any instrument, writing, resolution, notice, consent,
certificate, affidavit, letter, telecopy, telex or teletype message, statement,
order or other document or conversation believed by it to be genuine and
correct and to have been signed, sent or made by the proper Person or Persons
and upon advice and statements of legal counsel (including, without limitation,
counsel to the Loan Parties), independent accountants and other experts
selected by the Administrative Agent. 
The Administrative Agent may deem and treat the payee of any Note as the
owner thereof for all purposes unless a written notice of assignment,
negotiation or transfer thereof shall have been filed with the Administrative
Agent.  The Administrative Agent shall
be fully justified in failing or refusing to take any action under this
Agreement or any other Loan Document unless it shall first receive such advice
or concurrence of the Required Lenders (or, if so specified by this Agreement, all
Lenders) as it deems appropriate or it shall first be indemnified to its
satisfaction by the Lenders against any and all liability and expense (other
than any liability or expense arising from its gross negligence or willful
misconduct) that may be incurred by it by reason of taking or continuing to
take any such action.  The
Administrative Agent shall in all cases be fully protected in acting, or in
refraining from acting, under this Agreement and the other Loan Documents in
accordance with a request of the Required Lenders (or, if so specified by this
Agreement, all Lenders), and such request and any action taken or failure to
act pursuant thereto shall be binding upon all the Lenders and all future
holders of the Loans and L/C Obligations.

 

8.5   Notice of Default.  The Administrative Agent shall not be deemed
to have knowledge or notice of the occurrence of any Default or Event of
Default hereunder unless the Administrative Agent has received notice from a
Lender or the Borrower referring to this Agreement, describing such Default or
Event of Default and stating that such notice is a “notice of default”.  In the event that the Administrative Agent
receives such a notice, the Administrative Agent shall give notice thereof to
the Lenders.  The Administrative Agent
shall take such action with respect to such Default or Event of Default as
shall be reasonably directed by the Required Lenders (or, if so specified by
this Agreement, all Lenders); provided that unless and until the
Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it
shall deem advisable in the best interests of the Lenders.

 

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

 

70

 

decisions in taking or not
taking action under this Agreement and the other Loan Documents, and to make
such investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other condition and creditworthiness of the
Loan Parties and their affiliates. 
Except for notices, reports and other documents expressly required to be
furnished to the Lenders by the Administrative Agent hereunder, the
Administrative Agent shall have no duty or responsibility to provide any Lender
with any credit or other information concerning the business, operations,
property, condition (financial or otherwise), prospects or creditworthiness of
any Loan Party or any affiliate of a Loan Party that may come into the
possession of the Administrative Agent or any of its officers, directors,
employees, agents, attorneys-in-fact or affiliates.

 

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

 

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

 

8.9   Successor
Administrative Agent.  The
Administrative Agent may resign as Administrative Agent upon 10 days’ written
notice to the Lenders and the Borrower. 
If the Administrative Agent shall resign as Administrative Agent under
this Agreement and the other Loan Documents, then the Required Lenders shall
appoint from among the Lenders a successor Administrative Agent for the
Lenders, which successor Administrative Agent shall (unless an

 

71

 

Event of Default under Section
7(a) or Section 7(f) with respect to the Borrower shall have occurred and be
continuing) be subject to approval by the Borrower (which approval shall not be
unreasonably withheld or delayed), whereupon such successor Administrative
Agent shall succeed to the rights, powers and duties of the Administrative
Agent, and the term “Administrative Agent” shall mean such successor
Administrative Agent effective upon such appointment and approval, and the
former Administrative Agent’s rights, powers and duties as Administrative Agent
shall be terminated, without any other or further act or deed on the part of
such former Administrative Agent or any of the parties to this Agreement or any
holders of the Loans.  If no successor
Administrative Agent has accepted appointment as Administrative Agent by the
date that is 10 days following a retiring Administrative Agent’s notice of
resignation, the retiring Administrative Agent’s resignation shall nevertheless
thereupon become effective, and the Lenders shall assume and perform all of the
duties of the Administrative Agent hereunder until such time, if any, as the
Required Lenders appoint a successor Administrative Agent as provided for
above.  After any retiring
Administrative Agent’s resignation as Administrative Agent, the provisions of
this Section 8 shall inure to its benefit as to any actions taken or omitted to
be taken by it while it was Administrative Agent under this Agreement and the
other Loan Documents.

 

8.10   Authorization
to Release Liens; Other Actions Relating to Security Documents.  The Administrative Agent is hereby
irrevocably authorized by each of the Lenders to release any Lien covering any
Property of the Borrower or any of its Subsidiaries that is the subject of a
Disposition which is permitted by this Agreement or which has been consented to
in accordance with Section 9.1 of this Agreement.

 

8.11   The Arranger; the
Other Agents.  None of the
Arranger or the Other Agents, in their respective capacities as such, shall
have any duties or responsibilities, or incur any liability, under this
Agreement and the other Loan Documents.

 

SECTION 9.  MISCELLANEOUS

 

9.1   Amendments and Waivers.  Neither this Agreement or any other Loan
Document, nor any terms hereof or thereof, may be amended, supplemented or
modified except in accordance with the provisions of this Section 9.1.  Subject to the provisions of the immediately
following sentence, the Required Lenders and each Loan Party party to the
relevant Loan Document may, or (with the written consent of the Required
Lenders) the Administrative Agent and each Loan Party party to the relevant
Loan Document may, from time to time, (a) enter into written amendments,
supplements or modifications hereto and to the other Loan Documents (including
amendments and restatements hereof or thereof) for the purpose of adding any
provisions to this Agreement or the other Loan Documents or changing in any
manner the rights of the Lenders or of the Loan Parties hereunder or thereunder
or (b) waive, on such terms and conditions as may be specified in the instrument
of waiver, any of the requirements of this Agreement or the other Loan
Documents or any Default or Event of Default and its consequences; provided,
however, that no such waiver and no such amendment, supplement or
modification shall (i) forgive the principal amount or extend the final
scheduled date of maturity of any Loan or Reimbursement Obligation, or reduce
the stated rate of any interest or fee payable hereunder or extend the
scheduled date of any payment thereof or modify the definition of Interest Period
to permit an Interest Period greater than six months in duration, or increase
the

 

72

 

amount or extend the expiration
date of the Revolving Credit Commitment of any Lender, in each case without the
consent of each Lender directly affected thereby; (ii) amend, modify or waive
any provision of this Section or reduce any percentage specified in the
definition of Required Lenders, consent to the assignment or transfer by the
Borrower of any of its rights and obligations under this Agreement and the
other Loan Documents, release all or substantially all of the Collateral or
release all or substantially all of the Guarantors from their guarantee
obligations under the Guarantee and Collateral Agreement, in each case without
the consent of all Lenders; (iii) amend, modify or waive any provision of
Section 8 without the consent of the Administrative Agent; (iv) amend, modify
or waive any provision of Section 2.12 without the consent of each Lender
directly affected thereby; (v) amend, modify, or waive any provision of
Sections 2.19 through 2.26 without the consent of the Issuing Lenders, or of
Section 2.1(b) or Section 2.2(b)-(f) without the consent of the Swing Line
Lender or (vi) extend the expiration date of any Letter of Credit to a date
later than the fifth Business Day prior to the Revolving Credit Termination
Date without the consent of each Lender (including the Issuing Lender) unless
such Letter of Credit has been cash collateralized or backstopped in a manner
reasonably acceptable to the relevant Issuing Lender.  Any such waiver and any such amendment, supplement or
modification shall apply equally to each of the Lenders and shall be binding
upon the Loan Parties, the Lenders, the Administrative Agent and all future
holders of the Loans and L/C Obligations. 
In the case of any waiver, the Loan Parties, the Lenders and the
Administrative Agent shall be restored to their former position and rights
hereunder and under the other Loan Documents, and any Default or Event of
Default waived shall be deemed to be cured and not continuing; but no such
waiver shall extend to any subsequent or other Default or Event of Default, or
impair any right consequent thereon. 
Any such waiver, amendment, supplement or modification shall be effected
by a written instrument signed by the parties required to sign pursuant to the
foregoing provisions of this Section; provided, that delivery of an
executed signature page of any such instrument by facsimile transmission shall
be effective as delivery of a manually executed counterpart thereof.  Notwithstanding the foregoing, this
Agreement may be amended (or amended and restated) with the written consent of
the Required Lenders, the Administrative Agent and each Loan Party to each
relevant Loan Document (x) to add one or more additional credit facilities to
this Agreement and to permit the extensions of credit from time to time
outstanding thereunder and the accrued interest and fees in respect thereof
(collectively, the “Additional Extensions of Credit”) to share ratably
in the benefits of this Agreement and the other Loan Documents with the
Revolving Extensions of Credit and the accrued interest and fees in respect
thereof and (y) to include appropriately the Lenders holding such credit facilities
in any determination of the Required Lenders; provided, that  no Lender shall be required to make or
participate in such Additional Extensions of Credit without the consent of such
Lender in its sole discretion.

 

In addition to the
foregoing, and notwithstanding the first paragraph of this Section 10.1, this
Agreement and any other Loan Document may be amended (or amended and restated)
with the consent of the Borrower, the Administrative Agent and the Lenders
providing commitments therefor, but without the consent of the other Lenders,
to increase the Revolving Credit Commitments (the “New Revolving Credit
Commitments”) in an aggregate principal amount of up to $30,000,000; so
long as (i) no Default or Event of Default has occurred and is continuing
and (ii) the Borrower is in pro forma compliance with the financial covenants
set forth in Section 6.1 with respect to the most recently completed fiscal
quarter for which financial statements are then available.  No Lenders will be required to commit to provide
any portion of

 

73

 

the
New Revolving Credit Commitments.  The
proceeds of the New Revolving Credit Commitments will be used for Permitted
Acquisitions or for general corporate purposes.  On the date of effectiveness of any such New Revolving Credit
Commitments, each of the existing Lenders shall assign to each of the lenders
providing New Revolving Credit Commitments (the “New Lenders”) and each
of the New Lenders shall purchase from each of the Lenders, at the principal
amount therefor (together with accrued interest), such interests in the
Revolving Credit Loans outstanding on such effective date as shall be necessary
in order that, after giving effect to all such assignments and purchases, such
Revolving Credit Loans will be held by existing Lenders and New Lenders ratably
in accordance with their Revolving Credit Commitments after giving effect to
the addition of the New Revolving Credit Commitments and each New Revolving
Credit Commitment shall be deemed for all purposes a Revolving Credit
Commitment and each Revolving Credit Loan made thereunder (a “New Revolving
Credit Loan”) shall be deemed, for all purposes to be a Revolving Credit
Loan and each New Lender shall become a Lender with respect to the New
Revolving Loan Commitment and all matters relating thereto.

 

9.2   Notices.  All notices, requests and demands to or upon
the respective parties hereto to be effective shall be in writing (including by
telecopy), and, unless otherwise expressly provided herein, shall be deemed to
have been duly given or made when delivered, or three Business Days after being
deposited in the mail, postage prepaid, or, in the case of telecopy notice,
when received, addressed (a) in the case of the Borrower and the Administrative
Agent, as follows and (b) in the case of the Lenders, as set forth in an
administrative questionnaire delivered to the Administrative Agent or on
Schedule I to the Lender Addendum to which such Lender is a party or, in the
case of a Lender which becomes a party to this Agreement pursuant to an
Assignment and Acceptance, in such Assignment and Acceptance or (c) in the case
of any party, to such other address as such party may hereafter notify to the
other parties hereto:

 

	
  The Borrower:

  	
  B&G Foods, Inc.

  Four Gatehall Drive, Suite 110

  Parsippany, NJ 07054

  Attention: Chief Financial Officer

  Telecopy: 973-630-6550

  Telephone: 973-401-6500

  
	
   

  	
   

  
	
  The Administrative Agent:

  	
  Lehman Commercial Paper Inc.

  745 Seventh Avenue

  New York, New York 10019

  Attention: Craig Malloy

  Telecopy: (646) 758-4617

  Telephone: (212) 526-7150

  
	
   

  	
   

  
	
  Issuing Lender:

  	
  As notified by such Issuing Lender to the Administrative Agent and
  the Borrower

  

 

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

 

74

 

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

 

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

 

9.5   Payment of Expenses.  The Borrower agrees (a) to pay or reimburse
the Administrative Agent for all its reasonable out-of-pocket costs and
expenses incurred in connection with the syndication of the Revolving Credit
Commitments through the Closing Date (other than fees payable to syndicate
members) and with the development, preparation and execution of, and any
amendment, supplement or modification to, this Agreement and the other Loan
Documents and any other documents prepared in connection herewith or therewith,
and the consummation of the transactions contemplated hereby and thereby,
including, without limitation, the reasonable fees and disbursements and other
charges of counsel to the Administrative Agent and the charges of Intralinks,
(b) to pay or reimburse each Lender including, without limitation, the Issuing
Lender and the Swing Line Lender and the Administrative Agent for all their
costs and expenses incurred in connection with the enforcement or preservation
of any rights under this Agreement, the other Loan Documents and any such other
documents, including, without limitation, the fees and disbursements of counsel
(including the allocated fees and disbursements and other charges of in-house
counsel) to each Lender and of counsel to the Administrative Agent, (c) to pay,
and indemnify and hold harmless each Lender and the Administrative Agent from,
any and all recording and filing fees and any and all liabilities with respect
to, or resulting from any delay in paying, stamp, excise and other taxes, if
any, which may be payable or determined to be payable in connection with the
execution and delivery of, or consummation or administration of any of the
transactions contemplated by, or any amendment, supplement or modification of,
or any waiver or consent under or in respect of, this Agreement, the other Loan
Documents and any such other documents, and (d) to pay, and indemnify and hold
harmless each Lender, each Agent, their respective affiliates, and their respective
officers, directors, trustees, employees, advisors, agents and controlling
persons (each, an “Indemnitee”) from and against, any and all other
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever with
respect to the execution, delivery, enforcement, performance and administration
of this Agreement, the other Loan Documents and any such other documents,
including, without limitation, any of the foregoing relating to the use of
proceeds of the Loans or the use of the Letters of Credit or the violation of,
noncompliance with or liability under, any Environmental Law applicable to the
operations of the Borrower, any of its Subsidiaries or any of the Properties and
the fees and disbursements and other charges of legal counsel in connection
with claims, actions or proceedings by any Indemnitee against the Borrower
hereunder (all the foregoing in this clause (d), collectively, the “Indemnified
Liabilities”), provided, that the Borrower shall have no obligation
hereunder to any Indemnitee

 

75

 

with respect to Indemnified
Liabilities to the extent such Indemnified Liabilities are found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted
from the gross negligence or willful misconduct of such Indemnitee.  No Indemnitee, in the absence of the gross
negligence or willful misconduct of such Indemnitee, shall be liable for any
damages arising from the use by unauthorized persons of information or other
materials sent through electronic, telecommunications or other information
transmission systems that are intercepted by such persons.  Without limiting the foregoing, and to the
extent permitted by applicable law, the Borrower agrees not to assert and to
cause its Subsidiaries not to assert, and hereby waives and agrees to cause its
Subsidiaries so to waive, all rights for contribution or any other rights of
recovery with respect to all claims, demands, penalties, fines, liabilities,
settlements, damages, costs and expenses of whatever kind or nature, under or
related to Environmental Laws, that any of them might have by statute or
otherwise against any indemnitee.  All
amounts due under this Section shall be payable not later than 30 days after
written demand therefor.  Statements
payable by the Borrower pursuant to this Section shall be submitted with
reasonable supporting detail to the Borrower’s chief financial officer, at the
address of the Borrower set forth in Section 9.2, or to such other Person or
address as may be hereafter designated by the Borrower in a written notice to
the Administrative Agent (which shall promptly notify each Lender).  The agreements in this Section shall survive
repayment of the Loans and all other amounts payable hereunder.

 

9.6   Successors
and Assigns; Participations and Assignments.  (a)  This Agreement shall be binding upon and inure to
the benefit of the Borrower, the Lenders, the Administrative Agent, all future
holders of the Loans and their respective successors and assigns, except that
the Borrower may not assign or transfer any of its rights or obligations under
this Agreement or any other Loan Document without the prior written consent of
the Administrative Agent and each Lender (and any attempted such assignment or
transfer without such consents shall be null and void).

 

(b)   Any Lender may, without the
consent of the Borrower, in accordance with applicable law, at any time sell to
one or more banks, financial institutions or other entities (each, a “Participant”)
participating interests in any Revolving Credit Loan owing to such Lender, the
Revolving Credit Commitment of such Lender or any other interest of such Lender
hereunder and under the other Loan Documents. 
In the event of any such sale by a Lender of a participating interest to
a Participant, such Lender’s obligations under this Agreement to the other
parties to this Agreement shall remain unchanged, such Lender shall remain
solely responsible for the performance thereof, such Lender shall remain the
holder of any such Revolving Credit Loan or any Reimbursement Obligation for
all purposes under this Agreement and the other Loan Documents, and the
Borrower and the Administrative Agent shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement and the other Loan Documents.  In no event shall any Participant under any
such participation have any right to approve any amendment or waiver of any
provision of any Loan Document, or any consent to any departure by any Loan
Party therefrom and each Lender shall retain the sole right to enforce any Loan
Document and approve any amendment, modification or waiver of any provision of
the Loan Documents, except that a selling Lender may agree that, without the
Participant’s consent, such selling Lender will not agree to any amendment,
waiver or consent to any provisions of the Loan Documents to the extent that
such amendment, waiver or consent would reduce the principal of, or interest
on, the Loans or

 

76

 

Reimbursement
Obligations or any fees payable hereunder, release all or substantially all of
the Collateral, release all or substantially all of the Guarantors from their
guarantee obligations under the Guarantee and Collateral Agreement, or postpone
the date of the final maturity of the Loans, in each case to the extent subject
to such participation.  The Borrower
agrees that if amounts outstanding under this Agreement are due or unpaid, or
shall have been declared or shall have become due and payable upon the
occurrence of an Event of Default, each Participant shall, to the maximum
extent permitted by applicable law, be deemed to have the right of setoff in
respect of its participating interest in amounts owing under this Agreement to
the same extent as if the amount of its participating interest were owing
directly to it as a Lender under this Agreement, provided that, in
purchasing such participating interest, such Participant shall be deemed to
have agreed to share with the Lenders the proceeds thereof as provided in
Section 9.7(a) as fully as if it were a Lender hereunder.  The Borrower also agrees that each
Participant shall be entitled to the benefits of Sections 2.13, 2.14 and 2.15
with respect to its participation in the Revolving Credit Commitments and the
Loans and Reimbursement Obligations outstanding from time to time as if it were
a Lender; provided that, in the case of Section 2.14, such Participant
shall have complied with the requirements of said Section and provided, further,
that no Participant shall be entitled to receive any greater amount pursuant to
any such Section than the transferor Lender would have been entitled to receive
in respect of the amount of the participation transferred by such transferor
Lender to such Participant had no such transfer occurred.

 

(c)   Any Lender (an “Assignor”)
may, in accordance with applicable law and upon written notice to the
Administrative Agent, at any time and from time to time assign to any Lender or
any affiliate or Approved Fund or Control Investment Affiliate thereof or, with
the consent of each Issuing Lender, the Swing Line Lender, the Administrative
Agent and the Borrower (which, in each case, shall not be unreasonably withheld
or delayed), to an additional bank, financial institution or other entity (an “Assignee”)
all or any part of its rights and obligations under this Agreement pursuant to
an Assignment and Acceptance, executed by such Assignee and such Assignor (and,
where the consent of the Borrower or any other Person is required pursuant to
the foregoing provisions, by the Borrower and each such other Person) and
delivered to the Administrative Agent for its acceptance and recording in the
Register; provided that no such assignment to an Assignee (other than
any Lender or any affiliate or Approved Fund thereof) shall be in an aggregate
principal amount of less than $3,000,000 (other than in the case of an
assignment of all of a Lender’s interests under this Agreement), unless (i)
otherwise agreed by the Borrower and the Administrative Agent or (ii) such
assignment is one of two or more assignments being made simultaneously to
affiliated Assignees, the sum of the aggregate principal amounts of which is at
least $3,000,000.  Upon such execution,
delivery, acceptance and recording, from and after the effective date
determined pursuant to such Assignment and Acceptance, (x) the Assignee thereunder
shall be a party hereto and, to the extent provided in such Assignment and
Acceptance, have the rights and obligations of a Lender hereunder with a
Revolving Credit Commitment and/or Loans and other interests as set forth
therein, and (y) the Assignor thereunder shall, to the extent provided in such
Assignment and Acceptance, be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all of an
Assignor’s rights and obligations under this Agreement, such Assignor shall
cease to be a party hereto except as to Sections 2.13, 2.14, 2.16 and 9.5 in
respect of the period prior to such effective date).  Notwithstanding any provision of this Section, the consent of the
Borrower shall not be required for any assignment that occurs at any time when
any Event of Default shall have occurred and be continuing.

 

77

 

(d)   The Administrative Agent
shall, on behalf of the Borrower, maintain at its address referred to in
Section 9.2 a copy of each Assignment and Acceptance delivered to it and a
register (the “Register”) for the recordation of the names and addresses
of the Lenders and the Revolving Credit Commitment of, and principal amount of
the Revolving Extensions of Credit owing to, each Lender from time to
time.  The entries in the Register shall
be conclusive, in the absence of manifest error, and the Borrower, the
Administrative Agent and the Lenders shall treat each Person whose name is
recorded in the Register as the owner of the Revolving Extensions of Credit and
any Notes evidencing the Loans recorded therein for all purposes of this
Agreement.  Any assignment of any Loan,
whether or not evidenced by a Note, shall be effective only upon appropriate
entries with respect thereto being made in the Register (and each Note shall
expressly so provide).  Any assignment
or transfer of all or part of a Loan evidenced by a Note shall be registered on
the Register only upon surrender for registration of assignment or transfer of
the Note evidencing such Loan, accompanied by a duly executed Assignment and
Acceptance; thereupon one or more new Notes in the same aggregate principal
amount shall be issued to the designated Assignee, and the old Notes shall be
returned by the Administrative Agent to the Borrower marked “canceled”.  The Register shall be available for
inspection by the Borrower or any Lender (with respect to any entry relating to
such Lender’s Revolving Extensions of Credit) at any reasonable time and from
time to time upon reasonable prior notice.

 

(e)   Upon its receipt of an
Assignment and Acceptance executed by an Assignor and an Assignee (and, in any
case where the consent of any other Person is required by Section 9.6(c), by
each such other Person) together with payment to the Administrative Agent of a
registration and processing fee of $3,500 (except that no such registration and
processing fee shall be payable (y) in connection with an assignment by or to
Lehman Commercial Paper Inc. or any Affiliate thereof or (z) in the case of an
Assignee which is already a Lender or is an affiliate or Approved Fund of a
Lender or a Person under common management with a Lender), the Administrative
Agent shall (i) promptly accept such Assignment and Acceptance and (ii) on the
effective date determined pursuant thereto record the information contained
therein in the Register and give notice of such acceptance and recordation to
the Lenders, the Administrative Agent and the Borrower.  On or prior to such effective date, the
Borrower, at its own expense, upon request, shall execute and deliver to the
Administrative Agent (in exchange for the Note of the assigning Lender) a new
Note to the order of such Assignee in an amount equal to the Revolving Credit
Commitment acquired by it pursuant to such Assignment and Acceptance and, if
the Assignor has retained a Revolving Credit Commitment, upon request, a new
Note to the order of the Assignor in an amount equal to the Revolving Credit
Commitment retained by it hereunder. 
Such new Note or Notes shall be dated the Closing Date and shall
otherwise be in the form of the Note replaced thereby.

 

(f)   For avoidance of doubt, the
parties to this Agreement acknowledge that the provisions of this Section
concerning assignments of Loans and Notes relate only to absolute assignments
and that such provisions do not prohibit assignments creating security
interests, including, without limitation, any pledge or assignment by a Lender
of any Loan or Note to any Federal Reserve Bank in accordance with applicable
law.

 

(g)   Notwithstanding anything to
the contrary contained herein, any Lender (a “Granting Lender”) may
grant to a special purpose funding vehicle (an “SPC”), identified as
such in writing from time to time by the Granting Lender to the Administrative
Agent and the

 

78

 

Borrower, the option
to provide to the Borrower all or any part of any Loan that such Granting
Lender would otherwise be obligated to make to the Borrower pursuant to this
Agreement; provided that (i) nothing herein shall constitute a
commitment by any SPC to make any Loan, (ii) if an SPC elects not to
exercise such option or otherwise fails to provide all or any part of such
Loan, the Granting Lender shall be obligated to make such Loan pursuant to the
terms hereof and (iii) the Granting Lender’s and the Borrower’s
obligations under this Agreement to the other parties to this Agreement shall
remain unchanged, the Granting Lender shall remain solely responsible for the
performance thereof, and the Borrower, the Lenders and the Agents shall
continue to deal solely and directly with such Granting Lender in connection
with such Granting Lender’s rights and obligations under this Agreement and the
other Loan Documents.  The making of a
Loan by an SPC hereunder shall utilize the Revolving Credit Commitment of the
Granting Lender to the same extent, and as if, such Loan were made by such
Granting Lender.  Each party hereto
hereby agrees that no SPC shall be liable for any indemnity or similar payment
obligation under this Agreement (all liability for which shall remain with the
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
indebtedness 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 proceedings under the laws of the United
States or any state thereof.  In
addition, notwithstanding anything to the contrary in this Section 9.6(g), any
SPC may (A) with notice to, but without the prior written consent of, the
Borrower and the Administrative Agent and without paying any processing fee
therefor, assign all or a portion of its interests in any Loans to the Granting
Lender, or with the prior written consent of the Borrower and the
Administrative Agent (which consent shall not be unreasonably withheld) to any
financial institutions providing liquidity and/or credit support to or for the
account of such SPC to support the funding or maintenance of Loans, and
(B) disclose on a confidential basis any non-public information relating
to its Loans to any rating agency, commercial paper dealer or provider of any
surety, guarantee or credit or liquidity enhancement to such SPC; provided
that non-public information with respect to the Borrower may be disclosed only
with the Borrower’s consent which will not be unreasonably withheld.  In the event that the consent of all or any
portion of the Lenders is required pursuant to any provision of any Loan
Document at a time when any Loan is held by any SPC, such SPC and the Granting
Lender that would otherwise have been obligated to make such Loan shall agree
between themselves as to which of them shall be entitled to grant or withhold
any consent applicable to such Loan, but such Granting Lender shall communicate
with the Administrative Agent and the Borrower as to the giving or withholding
of such consent, and the parties to the Loan Documents shall be entitled to
rely conclusively on the advice by such Granting Lender as to whether such
consent is being granted or withheld. 
This paragraph (g) may not be amended without the written consent of any
SPC with Loans outstanding at the time of such proposed amendment.

 

9.7   Adjustments; Set-off.  (a)  Except to the extent that
this Agreement provides for payments to be allocated to a particular Lender and
except to the extent that Section 2.18 of this Agreement provides for payments
to a substituted Lender, if any Lender (a “Benefited Lender”) shall at
any time receive any payment of all or part of the Obligations owing to it, or
receive any collateral in respect thereof (whether voluntarily or
involuntarily, by set-off, pursuant to events or proceedings of the nature
referred to in Section 7(f), or otherwise), in a greater proportion than any
such payment to or collateral received by any other Lender, if any, in respect

 

79

 

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

 

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

 

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

 

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

 

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

 

9.11  
GOVERNING LAW. 
THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK.

 

80

 

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

 

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

 

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

 

(c)   agrees that service of process in any such action or
proceeding may be effected by mailing a copy thereof by registered or certified
mail (or any substantially similar form of mail), postage prepaid, to the
Borrower at its address set forth in Section 9.2 or at such other address of
which the Administrative Agent shall have been notified pursuant thereto;

 

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

 

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

 

9.13   Acknowledgments.  The Borrower hereby acknowledges that:

 

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

 

(b)   neither the Arranger, any Agent nor any Lender has any
fiduciary relationship with or duty to the Borrower arising out of or in
connection with this Agreement or any of the other Loan Documents, and the
relationship between the Arranger, the Agents and the Lenders, on the one hand,
and the Borrower, on the other hand, in connection herewith or therewith is
solely that of debtor and creditor; and

 

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

 

9.14   Confidentiality.  Each of the Agents and the Lenders agrees to
keep confidential all non-public information provided to it by any Loan Party
pursuant to this Agreement that is designated by such Loan Party as confidential;
provided that nothing herein shall prevent any Agent or any Lender from
disclosing any such information (a) to the Arranger, any Agent, any other
Lender or any affiliate or Approved Fund of any thereof, (b) to any

 

81

 

Participant, or Assignee, or
pledgee of interests hereunder (each, a “Transferee”) or prospective
Transferee that agrees to comply with the provisions of this Section, (c) to
any of its employees, directors, agents, attorneys, accountants and other
professional advisors who are, or are expected to be, engaged in evaluating,
approving, structuring or administering this Agreement or otherwise on a
“need-to-know basis” if reasonably incidental to the administration of this
Agreement (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), (d) to any financial institution that
is a direct or indirect contractual counterparty in swap agreements or such
contractual counterparty’s professional advisor (so long as such contractual
counterparty or professional advisor to such contractual counterparty agrees to
be bound by the provisions of this Section), (e) upon the request or demand of
any Governmental Authority (including, without limitation, bank regulatory
authorities) having jurisdiction over it, (f) in response to any order of any
court or other Governmental Authority (including, without limitation, bank regulatory
authorities) or as may otherwise be required pursuant to any Requirement of
Law, (g) in connection with any litigation or similar proceeding, (h) that has
been publicly disclosed other than in breach of this Section, (i) to the
National Association of Insurance Commissioners or any similar organization or
any nationally recognized rating agency that requires access to information
about a Lender’s investment portfolio in connection with ratings issued with
respect to such Lender or (j) in connection with the exercise of any remedy
hereunder or under any other Loan Document.

 

9.15   Release
of Collateral Security and Guarantee Obligations.  Notwithstanding anything to the contrary
contained herein or in the Guarantee and Collateral Agreement, upon request of
the Borrower, the Administrative Agent shall (without notice to or vote or
consent of any Lender) take action having the effect of releasing any
Collateral and/or guarantee obligations provided for in the Guarantee and
Collateral Agreement to the extent necessary to permit consummation, by the
relevant Person in accordance with the terms of this Agreement and the other
Loan Documents, of any transaction not prohibited hereunder.

 

9.16   Accounting Changes.  In the event that any “Accounting Change”
(as defined below) shall occur and such change results in a change in the
method of calculation of financial covenants, standards or terms in this
Agreement, then the Borrower and the Administrative Agent agree to enter into
negotiations in order to amend such provisions of this Agreement so as to
equitably reflect such Accounting Change with the desired result that the
criteria for evaluating the Borrower’s financial condition shall be the same
after such Accounting Change as if such Accounting Change had not been
made.  Until such time as such an
amendment shall have been executed and delivered by the Borrower, the
Administrative Agent and the Required Lenders, all financial covenants,
standards and terms in this Agreement shall continue to be calculated or construed
as if such Accounting Change had not occurred. 
“Accounting Change” refers to any change in accounting principles
required by the promulgation of any rule, regulation, pronouncement or opinion
by the Financial Accounting Standards Board of the American Institute of
Certified Public Accountants or, if applicable, the SEC.

 

9.17   Delivery of Lender
Addenda.  Each initial Lender
shall become a party to this Agreement by delivering to the Administrative
Agent a Lender Addendum duly executed by such Lender, the Borrower and the
Administrative Agent.

 

82

 

9.18  
WAIVERS OF JURY TRIAL.  THE BORROWER, THE AGENTS AND THE LENDERS
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION
OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN.

 

83

 

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

 

 

	
   

  	
  B&G FOODS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert C. Cantwell

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert C. Cantwell

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President of
  Finance

  
						

 

84

 

	
   

  	
  LEHMAN COMMERCIAL PAPER INC.,

  as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Francis Chang

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Francis Chang

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  
						

 

85

 

	
   

  	
  FLEET NATIONAL BANK,

  a Bank of America company,

  as Syndication Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jana L. Baker

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jana L. Baker

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
						

 

 

86

 

	
   

  	
  THE BANK OF NEW YORK,

  as Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tracy L. Cooper

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Tracy L. Cooper

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  
						

 

87

 

ANNEX A

 

PRICING GRID
FOR REVOLVING CREDIT LOANS

 

	
  Consolidated Leverage

  Ratio

  	
   

  	
  Applicable
  Margin

  for Eurodollar Loans

  	
   

  	
  Applicable
  Margin

  for Base Rate Loans

  	
   

  
	
  Greater than or equal to 5.00 to 1.00

  	
   

  	
  3.00

  	
  %

  	
  2.00

  	
  %

  
	
  Less than 5.00 to 1.00, but greater than or
  equal to 4.50 to 1.00

  	
   

  	
  2.75

  	
  %

  	
  1.75

  	
  %

  
	
  Less than 4.50 to 1.00, but greater than or
  equal to 4.00 to 1.00

  	
   

  	
  2.50

  	
  %

  	
  1.50

  	
  %

  
	
  Less than 4.00 to 1.00

  	
   

  	
  2.25

  	
  %

  	
  1.25

  	
  %

  

 

Changes in the
Applicable Margin with respect to Loans resulting from changes in the
Consolidated Leverage Ratio shall become effective on the date (the “Adjustment
Date”) on which financial statements are delivered to the Lenders pursuant
to Section 5.1 (but in any event not later than the 45th day after the end of
each of the first three quarterly periods of each fiscal year or the 90th day
after the end of each fiscal year, as the case may be) and shall remain in
effect until the next change to be effected pursuant to this paragraph.  If any financial statements referred to
above are not delivered within the time periods specified above, then, until
such financial statements are delivered, the Consolidated Leverage Ratio as at
the end of the fiscal period that would have been covered thereby shall for the
purposes of this Pricing Grid be deemed to be greater than 5.00 to 1.00.  In addition, at all times while an Event of
Default shall have occurred and be continuing, the Consolidated Leverage Ratio
shall for the purposes of this Pricing Grid be deemed to be greater than 5.00
to 1.00.  Each determination of the
Consolidated Leverage Ratio pursuant to this Pricing Grid shall be made with
respect to the period of four consecutive fiscal quarters of the Borrower ending
at the end of the period covered by the relevant financial statements.

 

 

ANNEX B

 

EXISTING LETTERS OF CREDIT

 

	
  Ref. No.

  	
   

  	
  Amount

  	
   

  	
  Beneficiary

  	
   

  
	
  00039783

  	
   

  	
  71,753

  	
   

  	
  Liberty
  Mutual Insurance Company

  	
   

  

 

 

SCHEDULE 3.4

 

CONSENTS,
AUTHORIZATIONS, FILINGS AND NOTICES

 

 

SCHEDULE 3.9

 

INTELLECTUAL
PROPERTY CLAIMS

 

 

SCHEDULE 3.15

 

SUBSIDIARIES

 

 

SCHEDULE 3.19(a)-1

 

UCC FILING
JURISDICTIONS

 

 

SCHEDULE 3.19(a)-2

 

UCC FINANCING
STATEMENTS TO REMAIN ON FILE

 

 

SCHEDULE 6.2(d)

 

EXISTING
INDEBTEDNESS

 

 

SCHEDULE 6.3(f)

 

EXISTING LIENS

 

 

SCHEDULE 6.10

 

TRANSACTIONS
WITH AFFILIATES

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