Document:

exh10-1.htm

  
    EXHIBIT
10.1

     

    Second
Amendment

    To
Amended and Restated Revolving

    Credit
and Term Loan Agreement

    

    This
SECOND AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN
AGREEMENT (this “Amendment”) is entered into as of May 15, 2009, by and
among:  Centerline Holding Company and Centerline Capital Group Inc.
(collectively, the “Borrowers”); those Persons listed as Guarantors on Schedule 1 hereto
(each, a “Guarantor,” and, collectively, the “Guarantors”); and, pursuant to
Section 23.1 of
the Loan Agreement (as defined below), those Lenders constituting the Required
Lenders, each as set forth on a counterpart signature page hereto, substantially
in the form of Schedule 2 hereto
(the “Required Lenders”).

     

    RECITALS

     

    Reference
is made to the following facts that constitute the background of this
Amendment:

     

    A.           The
parties hereto, among others, have entered into that certain Amended and
Restated Revolving Credit and Term Loan Agreement, dated as of December 19, 2008
(as amended, restated, supplemented or otherwise modified from time to time, the
“Loan Agreement”).  Capitalized terms used herein and not otherwise
defined herein shall have the same meanings herein as ascribed to them in the
Loan Agreement.

     

    B.           The
Borrowers have requested certain consents and amendments to the Loan Agreement
that will (a) enable the Borrowers to increase the net worth of CMP by
transferring certain Freddie Mac mortgage servicing rights from CMC to CMP and
(b) revise the definition of “Net Worth” to address changes in the generally
accepted accounting principles promulgated or adopted by the Financial
Accounting Standards Board for the treatment of minority interests as reflected
in the Statement of Financial Accounting Standards No. 160 (“FAS
160”).

     

    C.           To
implement the foregoing modifications, the Borrowers, the Guarantors, the
Administrative Agent and the Required Lenders agree that certain sections of the
Loan Agreement should be amended on the terms and conditions set forth in this
Amendment.

     

    NOW,
THEREFORE, in consideration of the foregoing recitals and of the
representations, warranties, covenants and conditions set forth herein and in
the Loan Agreement, and for other valuable consideration the receipt and
adequacy of which is hereby acknowledged, the parties hereto agree as
follows:

    

    Section
1.                      Amendment to Definition of
Net Worth.  In recognition of the adoption of FAS 160, the
definition of “Net Worth” set forth in Section 1.1.2 of the
Loan Agreement is hereby amended to delete the struckthrough language and
include the double underlined and bold language in the following:

    

    Net Worth. CHC’s
total shareholders’
equity less non-controlling interests as
set forth on the most recent balance sheet of CHC in accordance with GAAP as
adjusted in the following manner, in each case, as such adjustment is approved
by the Administrative Agent in its reasonable discretion: (i) by adding the
amount attributable to Reclassified CRA Shares on the balance sheet of CHC to
the extent not already included therein, (ii) by adding any charge to shareholders’
equity based on (A) the difference between fair value of the Reclassified CRA
Shares as of the date on which such shares required reclassification and the
carrying basis of such shares, and (B) the difference between the fair value of
the Reclassified CRA Shares as of the date on which such shares required
reclassification and the future redemption price of such shares, and (iii) by
eliminating the increase or decrease to shareholders’
equity caused by the consolidation of Centerline High Yield CMBS Fund I LLC,
Centerline High Yield CMBS Fund II LLC, Centerline High Yield CMBS Fund III LLC
and Centerline Real Estate Special Situations Mortgage Fund LLC (collectively,
the “Consolidated Funds”) solely because of the application of FIN
46.  At such time as changes in GAAP require a material alteration in
the calculation of CHC’s Net Worth, shareholder equity or other similar
measurements of CHC’s equity value, including, without limitation, in the event
GAAP requires the calculation of so-called “controlling” and “non-controlling”
equity, the Administrative Agent, the Borrowers and the Guarantors shall
negotiate in good faith to revise the definition of Net Worth and to re-set the
Net Worth covenant in Section 10.14 in
order to continue to measure the economic health of CHC in a manner
substantially equivalent to the manner in which CHC’s economic health is
measured by the Net Worth covenant set forth in Section 10.14 on the
Closing Date.  Following such changes in GAAP, and prior to the
Administrative Agent, the Borrowers and the Guarantors agreeing to such
revisions and re-set of the Net Worth covenant in Section 10.14, the
definition of Net Worth and Section 10.14 in
effect on the Closing Date shall continue to apply and for purposes of
calculating Net Worth and compliance with Section 10.14 the
Borrowers shall prepare supplements to their GAAP financial statements allowing
the calculation of covenant compliance in accordance with GAAP as in effect on
the Closing Date.

     

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    Section
2.                      Amendment to Definition of
GAAP.  In connection with the adoption of FAS 160, the
definition of “GAAP” set forth in Section 1.1.2 of the
Loan Agreement is hereby amended to allow for the preparation of financial
statements in accordance with FAS 160.

     

    Section
3.                      Consent to Transfer of
Assets from CMC to CMP.  In accordance with Section 10.4.2(a) of
the Loan Agreement, and in reliance upon the description of such transaction
provided to the Agent in that certain Letter Agreement re: Collateral for
Reimbursement Obligations under Master Agreements with Freddie Mac, dated as of
April 30, 2009, by and among Freddie Mac and CMC, a copy of which is attached
hereto as Schedule
3 (the “Letter Agreement”), the Required Lenders hereby consent to CMC’s
transfer of those certain mortgage servicing rights of CMC relating to its
business with Freddie Mac, as set forth on Schedule 4 hereto
(the “Freddie MSRs”), to CMP in connection with Freddie Mac permitting CMP to
originate and service loans for Freddie Mac without obtaining additional letters
of credit or third party guarantees in support of CMP’s credit.

     

    Section
4.                      Representations and
Warranties.  The Borrowers and Guarantors, jointly and
severally, represent and warrant to the Lenders, the Issuing Bank and the
Administrative Agent as of the date of this Amendment that: (a) other than on
account of certain accounts payable advances made on behalf of various funds and
the protective advances made to a property that does not support the Bond
Transaction, each as more fully described in that certain email, dated as of
March 18, 2009, from Eliza Kwong, no Default is in existence on the date hereof,
or will result from the execution and delivery of this Amendment or the
consummation of any transactions contemplated hereby; (b) each of the
representations and warranties of the Borrowers and the Guarantors in the Loan
Agreement and the other Loan Documents is true and correct in all material
respects on the effective date of this Amendment (except for representations and
warranties limited as to time or with respect to a specific event, which
representations and warranties shall continue to be limited to such time or
event); and (c) this Amendment and the Loan Agreement are legal, valid and
binding agreements of the Borrowers and the Guarantors and are enforceable
against them in accordance with their terms.

     

    Section
5.                      Ratification.  Except
as hereby amended, the Loan Agreement, all other Loan Documents and each
provision thereof are hereby ratified and confirmed in every respect and shall
continue in full force and effect, and, except as specified herein, this
Amendment shall not be, and shall not be deemed to be, a waiver of any Default
or of any covenant, term or provision of the Loan Agreement or the other Loan
Documents.  In furtherance of the foregoing ratification, by executing
this Amendment in the spaces provided below, each of the Guarantors, on a joint
and several basis, hereby absolutely and unconditionally (a) reaffirms its
obligations under the Guaranties, and (b) absolutely and unconditionally
consents to (i) the execution and delivery by the Borrowers of this Amendment,
(ii) the continued implementation and consummation of arrangements and
transactions contemplated by the Loan Agreement (including, without limitation,
as amended or waived hereby) and the other Loan Documents, and (iii) the
performance and observance by each Borrower and each Guarantor of all of its
respective agreements, covenants, duties and obligations under the Loan
Agreement (including, without limitation, as amended hereby) and the other Loan
Documents.

     

    Section
6.                      Conditions
Precedent.  The agreements set forth in this Amendment are
conditional and this Amendment shall not be effective until (i) receipt by the
Administrative Agent of a fully-executed counterpart of this Amendment and (ii)
payment by the Borrowers of all of the Administrative Agent’s reasonable fees
associated with the preparation, negotiation, execution, delivery and
administration of this Amendment and the Loan Agreement accrued through the date
hereof, including without limitation, the Administrative Agent’s reasonable
attorneys’ fees billed and outstanding through the date hereof as reflected on
the Borrowers’ Serengeti e-billing system..

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    Section
7.                      Counterparts.  This
Amendment may be executed and delivered in any number of counterparts with the
same effect as if the signatures on each counterpart were upon the same
instrument.  Any counterpart delivered by facsimile or by other
electronic method of transmission shall be deemed an original signature
thereto.

     

    Section
8.                      Amendment as Loan
Document.  Each party hereto agrees and acknowledges that this
Amendment constitutes a “Loan Document” under and as defined in the Loan
Agreement.

     

    Section
9.                                GOVERNING
LAW.  THIS AMENDMENT SHALL BE DEEMED TO CONSTITUTE A CONTRACT
MADE UNDER THE LAWS OF THE STATE OF NEW YORK, INCLUDING ARTICLE 5 OF THE UCC,
AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF
THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 AND 5-1402 OF THE GENERAL
OBLIGATIONS LAW, BUT OTHERWISE WITHOUT REGARD TO ITS CONFLICTS OF LAW
RULES).

     

    Section
10.                      Successors and
Assigns.  This Amendment shall be binding upon each of the
Borrowers, the Guarantors, the Lenders, the Issuing Bank, the Administrative
Agent, the Agents and their respective successors and assigns, and shall inure
to the benefit of each such Person and their permitted successors and
assigns.

     

    Section
11.                      Headings.  Section
headings in this Amendment are included herein for convenience of reference only
and shall not constitute a part of this Amendment for any other
purpose.

     

    Section
12.                      Expenses.  Each
Borrower jointly and severally agrees to promptly reimburse the Administrative
Agent for all expenses, including, without limitation, reasonable fees and
expenses of outside legal counsel, such Person has heretofore or hereafter
incurred or incurs in connection with the preparation, negotiation and execution
of this Amendment and all other instruments, documents and agreements executed
and delivered in connection with this Amendment.

     

    Section
13.                      Integration.  This
Amendment contains the entire understanding of the parties hereto and with any
other Lenders and parties to the Loan Agreement with regard to the subject
matter contained herein.  This Amendment supersedes all prior or
contemporaneous negotiations, promises, covenants, agreements and
representations of every nature whatsoever with respect to the matters referred
to in this Amendment, all of which have become merged and finally integrated
into this Amendment.  Each of the parties hereto understands that in
the event of any subsequent litigation, controversy or dispute concerning any of
the terms, conditions or provisions of this Amendment, no party shall be
entitled to offer or introduce into evidence any oral promises or oral
agreements between the parties relating to the subject matter of this Amendment
not included or referred to herein and not reflected by a writing included or
referred to herein.

     

    Section
14.                      Waiver and
Release.

    

    (a)           The
Borrowers and the Guarantors acknowledge and agree that, to their knowledge, as
of the date hereof:  (i) none of the Borrowers or Guarantors have any
claim or cause of action against the Administrative Agent or the Lenders arising
out of, under or in any way relating to the Loan Agreement or the Loan Documents
(including this Amendment), any documents, instruments, agreements, dealings or
other matters in connection with the Loan Documents, the transactions
contemplated by the Loan Documents, or any actions taken or not taken by the
Administrative Agent or the Lenders in connection therewith; (ii) none of the
Borrowers or the Guarantors have any offset rights, counterclaims or defenses of
any kind against payment and performance of the obligations under the Loan
Documents; and (iii) the Administrative Agent and the Lenders have heretofore
properly performed and satisfied in a timely manner all of their obligations to
the Borrowers and the Guarantors under the Loan Documents.

    

    (b)           In
consideration of the amendments and consents provided by and the covenants of
the Administrative Agent and the Lenders herein, the Borrowers and the
Guarantors agree to eliminate any possibility that any past conditions, acts,
omission, events, circumstances or matters, of which any of the Borrowers or
Guarantors have knowledge as of the date hereof, would impair or otherwise
adversely affect any of the rights, interests, contracts, collateral security or
rights and remedies of the Administrative Agent or the Lenders under the Loan
Documents.  Therefore, each of the Borrowers and the Guarantors, on
their own behalf and on behalf of each of their respective successors and
assigns, hereby waives, releases and discharges the Administrative Agent and the
Lenders, from any and all claims, demands, actions or causes of action, of which
any of the Borrowers or Guarantors have knowledge on or before the date hereof
and arising out of, under or in any way relating to the Loan Documents
(including this Amendment), any documents instruments, agreements, dealings or
other matters connected with the Loan Documents, the transactions contemplated
by the Loan Documents or any actions taken or not taken by the Administrative
Agent or the Lenders in connection therewith, including, without limitation, all
matters, claims, transactions or things occurring on or prior to the date hereof
of which any of the Borrowers or Guarantors have knowledge.  The
waivers, releases and discharges in this paragraph shall be effective regardless
of any other event that may occur or not occur prior to, or on or after the date
hereof.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Section
15.                      Jury Trial
Waiver.  THE BORROWERS, GUARANTORS, ADMINISTRATIVE AGENT AND
LENDERS BY ACCEPTANCE OF THIS AMENDMENT MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS SECOND
AMENDMENT, THE LOAN AGREEMENT, OR ANY OTHER LOAN DOCUMENTS CONTEMPLATED TO BE
EXECUTED IN CONNECTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS,
STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING,
WITHOUT LIMITATION, ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS OR
ACTIONS OF ANY AGENT OR ANY LENDER RELATING TO THE ADMINISTRATION OF THE LOAN OR
ENFORCEMENT OF THE LOAN DOCUMENTS, ARISING OUT OF TORT, STRICT LIABILITY,
CONTRACT OR ANY OTHER LAW, AND AGREE THAT NO PARTY WILL SEEK TO CONSOLIDATE ANY
SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT
BEEN WAIVED.

     

    

     

    [Remainder of page intentionally left
blank; signature pages follow]

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
 

    IN
WITNESS WHEREOF, the parties have caused this Amendment to be duly executed by
their duly authorized officers or representatives, all as of the date first
above written.

    

    BORROWERS:         CENTERLINE
HOLDING COMPANY

     

    By:      /s/
Marc D. Schnitzer

          Name:
Marc D. Schnitzer

          Title:
Chief Executive Officer and President

     

    CENTERLINE
CAPITAL GROUP INC.

     

    By:      /s/
Marc D. Schnitzer

          Name:
Marc D. Schnitzer

          Title:
Chief Executive Officer

     

    

     

    (Signatures
continued on next page)

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    GUARANTORS:       CENTERLINE
CAPITAL COMPANY LLC

     

    By:      /s/
Marc D. Schnitzer

          Name:
Marc D. Schnitzer

          Title:
Chief Executive Officer and President

     

    CENTERLINE
AFFORDABLE HOUSING ADVISORS LLC

     

    By:      /s/
Marc D. Schnitzer

          Name:
Marc D. Schnitzer

          Title:
Chief Executive Officer

     

    CENTERLINE/AC
INVESTORS LLC

     

    By:      /s/
Marc D. Schnitzer

          Name:
Marc D. Schnitzer

          Title:
Chief Executive Officer

     

    CENTERLINE
HOLDING TRUST

     

    By:      /s/
Marc D. Schnitzer

          Name:
Marc D. Schnitzer

          Title:
Chief Executive Officer

     

    CENTERLINE
INVESTORS I LLC

     

    By:      /s/
Marc D. Schnitzer

          Name:
Marc D. Schnitzer

          Title:
Chief Executive Officer

     

    CENTERLINE
MANAGER LLC

     

    By:      /s/
Marc D. Schnitzer

          Name:
Marc D. Schnitzer

          Title:
Chief Executive Officer

     

    CENTERLINE
GUARANTEED MANAGER LLC

     

    By:      /s/
Marc D. Schnitzer

          Name:
Marc D. Schnitzer

          Title:
Chief Executive Officer

     

    

     

    (Signatures
continued on next page)

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    GUARANTORS
(CONT.):   CENTERLINE REIT INC.

     

    By:      /s/
Marc D. Schnitzer

          Name:
Marc D. Schnitzer

          Title:
Chairman

     

    CENTERLINE
SERVICING INC.

     

    

    By:      /s/
Marc D. Schnitzer

          Name:
Marc D. Schnitzer

          Title:
Chairman

     

    CENTERLINE
FINANCE CORPORATION

     

    

    By:      /s/
Marc D. Schnitzer

          Name:
Marc D. Schnitzer

          Title:
Chairman

     

    CENTERLINE
INVESTOR LP LLC

     

    By:      /s/
Marc D. Schnitzer

          Name:
Marc D. Schnitzer

          Title:
Chief Executive Officer and President

     

     CENTERLINE
INVESTOR LP II LLC

    

    By:      /s/
Marc D. Schnitzer

          Name:
Marc D. Schnitzer

          Title:
Executive Managing Director

     

    CENTERLINE
CREDIT MANAGEMENT LLC

     

    By:      /s/
Marc D. Schnitzer

          Name:
Marc D. Schnitzer

          Title:
Chief Executive Officer and President

     

    CM
INVESTOR LLC

     

    By:      /s/
Marc D. Schnitzer

          Name:
Marc D. Schnitzer

          Title:
Chief Executive Officer

     

    

     

    (Signatures
continued on next page)

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    CENTERLINE
SERIES M INVESTOR LLC

    By:  Centerline
Affordable Housing Advisors LLC,

            its
sole member

     

    By:      /s/
Marc D. Schnitzer

    Name:
Marc D. Schnitzer

    Title:
Chief Executive Officer

     

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
1

    

    Guarantors

     

    1.           Centerline
Investor LP

    2.           Centerline
Investor LP II,

    3.           CCC

    4.           CAHA

    5.           Centerline/AC

    6.           Holding
Trust

    7.           Centerline
Investors

    8.           Centerline
REIT Inc.

    9.           Centerline
Servicing Inc.

    10.         Centerline
Finance Corporation

    11.         Credit
Management

    12.         CM
Investor LLC

    13.         Centerline
Manager LLC

    14.         Centerline
Guaranteed Manager LLC

    15.         Centerline
Series M Investor LLC

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Schedule
2

    

    Form of Signature Page for
Lenders included in Required Lenders for purposes of approving SECOND AMENDMENT
TO AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN
AGREEMENT:

    

    The
undersigned hereby evidences its agreement to the terms of the SECOND AMENDMENT
TO AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT, and the
consummation of the transactions contemplated thereby, amending that certain
Amended and Restated Revolving Credit and Term Loan Agreement, dated as of
December 19, 2008,  by and among Centerline Holding Company and
Centerline Capital Group Inc. as the Borrowers, the Guarantors described
therein, the Lenders described therein, and Bank of America, N.A., as
Administrative Agent and Issuing Bank, as such agreement is amended, restated,
supplemented or otherwise modified from time to time.

    

    

    [Name
of Lender]

    

    

    By:
________________________________

    Name:

    Title:

    

    

    Representing
_____% of all Term Loans outstanding, all Revolving Exposure, unused Revolving
Loan Commitments and unused Term Loan Commitmentsexhibit_10-1.htm

    EXHIBIT
10.1

     

     

    EXECUTION
COPY

    SECOND
AMENDMENT

     

    TO
CREDIT AND GUARANTY AGREEMENT

     

    THIS SECOND AMENDMENT TO CREDIT AND
GUARANTY AGREEMENT (this “Amendment”) is dated as of
May 20, 2009, and is entered into by and among AMERICAN ACHIEVEMENT
CORPORATION, a Delaware corporation (the “Company’’), AAC HOLDING CORP., a Delaware
corporation (“Holdings’’), GOLDMAN SACHS CREDIT PARTNERS
L.P. (“GSCP”), as
Administrative Agent (“Administrative Agent”),
acting with the consent of the Requisite Lenders and all Lenders holding
Revolving Commitments and, for purposes of Section IV hereof, the GUARANTORS listed on the
signature papers hereto, and is made with reference to that certain CREDIT AND GUARANTY AGREEMENT
dated as of March 25, 2004 (as amended through the date hereof, the “Credit Agreement”) by and
among the Company, Holdings, the subsidiaries of the Company named therein, the
Lenders, the Administrative Agent, Collateral Agent and the other Agents named
therein.  Capitalized terms used herein without definition shall have
the same meanings herein as set forth in the Credit Agreement after giving
effect to this Amendment.

    

    RECITALS

    

    WHEREAS, the Credit Parties
have requested that Requisite Lenders and all Lenders holding Revolving
Commitments agree to amend certain provisions of the Credit Agreement, including
to, among other things, terminate the existing Revolving Commitments and provide
for new Revolving Commitments, all as provided for herein; and

     

    WHEREAS, subject to certain
conditions, Requisite Lenders and all Lenders holding Revolving Commitments are
willing to agree to such amendments relating to the Credit Agreement and to the
provision of the new Revolving Commitments hereunder.

     

    NOW, THEREFORE, in
consideration of the premises and the agreements, provisions and covenants
herein contained, the parties hereto agree as follows:

     

    
      	
              SECTION
      I.  

            	
              AMENDMENTS
      TO CREDIT AGREEMENT

            

    

     

    
      	
              1.1  

            	
              Amendments to Section
      1: Definitions.

            

    

     

    (a)  Section
1.1 of the Credit Agreement is hereby amended by adding the following
definitions in proper alphabetical sequence:

     

    “Extended Revolving Commitment”
means the commitment of a Lender to make or otherwise fund any Revolving Loan
and to acquire participations in Letters of Credit and Swingline Loans hereunder
on and after the Second Amendment Effective Date and “Extended Revolving
Commitments” means such commitments of all Lenders in the
aggregate.  The amount of each Lender’s Extended Revolving Commitment,
if any, is set forth on Appendix A to the Second Amendment or in the applicable
Assignment Agreement, subject to any adjustment or

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    reduction
pursuant to the terms and conditions hereof.  The aggregate amount of
Extended Revolving Commitments as of the Second Amendment Effective Date is
$25,000,000.

     

    “Original Revolving Commitment”
means the commitment of a Lender to make or otherwise fund any Revolving Loan
and to acquire participations in Letters of Credit and Swingline Loans hereunder
and “Original Revolving
Commitments” means such commitments of all Lenders in the aggregate prior
to the Second Amendment Effective Date.  The aggregate amount of
Original Revolving Commitments as of the Closing Date and through the Second
Amendment Effective Date was $40,000,000.  The aggregate amount of
Original Revolving Commitments on and after the Second Amendment Effective Date
is $0.

     

    “Parent Indenture” means the
Indenture, dated as of June 12, 2006, in respect of the 12.75% senior PIK notes
due October 1, 2012 of Parent, as in effect on the date hereof.

     

    “Second Amendment” means that
certain Second Amendment to Credit and Guaranty Agreement dated as of May 20,
2009, among the Company, Holdings, Administrative Agent, the financial
institutions and the Guarantors listed on the signature pages
thereto.

     

    “Second Amendment Effective
Date” means the
date of satisfaction of the conditions referred to in Section II of the Second
Amendment.

     

    (b)  Section
1.1 of the Credit Agreement is hereby amended by deleting the following
definitions:  “Increased Amount Date”, “Joinder Agreement”, “New
Revolving Commitments”, “New Revolving Lender”, “New Revolving Loan Exposure”,
“New Revolving Loans”, “New Revolving Loan Maturity Date”, “New Term Loan
Commitments”, “New Term Loan Exposure”, “New Term Loan Lender”, “New Term Loan
Maturity Date”, “New Term Loans” and “Series”.  Each reference thereto
in the Credit Documents shall cease to have any effect as of the Second
Amendment Effective Date.

     

    (c)  Section
1.1 of the Credit Agreement is hereby amended by adding the following sentence
to the end of the existing definition of “Adjusted Eurodollar
Rate”:

     

    Notwithstanding
the foregoing, the Adjusted Eurodollar Rate shall at no time be less than 2.00%
per annum.

     

    (d)  Section
1.1 of the Credit Agreement is hereby amended by deleting the existing
definition of “Applicable Margin” and replacing it with the following
definition:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Applicable Margin” means: (a)
from the Closing Date until the commencement of the first interest period
occurring after the date of delivery of the Compliance Certificate and the
financial statements for the second full Fiscal Quarter after the Closing Date
(i) with respect to Revolving Loans that are Eurodollar Rate Loans, 2.75%,
per annum (ii) with respect to Revolving Loans and Swing Line Loans that are
Base Rate Loans, 1.75% per annum; (b) from the commencement of the first
interest period occurring after the date of delivery of the Compliance
Certificate and the financial statements for the second full Fiscal Quarter
after the Closing Date until the Second Amendment Effective Date, with respect
to Revolving Loans and Swing Line Loans, a percentage, per annum, determined by
reference to the Leverage Ratio in effect from time to time as set forth
below:

     

    
      
        	
                Leverage
      Ratio

              	
                Applicable
      Margin for Revolving Loans

                (Eurodollar
      Loans)

              	
                Applicable
      Margin for Revolving Loans and Swing Line Loans

                (Base
      Rate Loans)

              
	
                > 5.5:1.00

              	
                3.00%

              	
                2.00%

              
	
                <
      5.5:1.00

                 > 4.5:1.00

              	
                2.75%

              	
                1.75%

              
	
                <
      4.5:1.00

                 > 4.0:1.00

              	
                2.50%

              	
                1.50%

              
	
                <
      4.0:1.00

                 > 3.5:1.00

              	
                2.25%

              	
                1.25%

              
	
                <
      3.5:1.00

              	
                2.00%

              	
                1.00%

              

      

    

    

    (c) from
the Closing Date until the Second Amendment Effective Date, with respect to the
Tranche B Term Loans, a percentage, per annum, determined by reference to the
Leverage Ratio in effect from time to time as set forth below:

     

    
      
        	
                Leverage
      Ratio

              	
                Applicable
      Margin for Tranche B Term Loans (Eurodollar Loans)

              	
                Applicable
      Margin for Tranche B Term Loans

                (Base
      Rate Loans)

              
	
                 > 4.0:1.00

              	
                2.50%

              	
                1.50%

              
	
                <
      4.0:1.00

              	
                2.25%

              	
                1.25%

              

      

    

    

    (d)  on
and after the Second Amendment Effective Date, with respect to Revolving Loans
and Swing Line Loans, a percentage, per annum, determined by reference to the
Leverage Ratio in effect from time to time as set forth below:

     

    
      
        	
                Leverage
      Ratio

              	
                Applicable
      Margin for Revolving Loans

                (Eurodollar
      Loans)

              	
                Applicable
      Margin for Revolving Loans and Swing Line Loans

                (Base
      Rate Loans)

              
	
                > 5.5:1.00

              	
                5.00%

              	
                4.00%

              
	
                <
      5.5:1.00

                 > 4.5:1.00

              	
                4.75%

              	
                3.75%

              
	
                <
      4.5:1.00

                 > 4.0:1.00

              	
                4.50%

              	
                3.50%

              
	
                <
      4.0:1.00

                 > 3.5:1.00

              	
                4.25%

              	
                3.25%

              
	
                <
      3.5:1.00

              	
                4.00%

              	
                3.00%

              

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    and (e)
on and after the Second Amendment Effective Date, with respect to the Tranche B
Term Loans, a percentage, per annum, determined by reference to the Leverage
Ratio in effect from time to time as set forth below:

     

    
      
        	
                Leverage
      Ratio

              	
                Applicable
      Margin for Tranche B Term Loans (Eurodollar Loans)

              	
                Applicable
      Margin for Tranche B Term Loans

                (Base
      Rate Loans)

              
	
                 > 4.0:1.00

              	
                4.50%

              	
                3.50%

              
	
                <
      4.0:1.00

              	
                4.25%

              	
                3.25%

              

      

    

    

    No change
in the Applicable Margin shall be effective until three Business Days after the
date on which Administrative Agent shall have received the applicable financial
statements and a Compliance Certificate pursuant to Section 5.1(d) calculating
the Leverage Ratio.  At any time and so long as the Company has not
submitted to Administrative Agent the applicable information as and when
required under Section 5.1(d), the Applicable Margin shall be determined as if
the Leverage Ratio were in excess of 5.5:1.00 in the case of Revolving Loans and
Swing Line Loans and 4.0:1.00 in the case of Tranche B Term
Loans.  Within one Business Day of receipt of the applicable
information under Section 5.1(d), the Administrative Agent shall give each
Lender telefacsimile or telephonic notice (confirmed in writing) of the
Applicable Margin in effect from such date.

     

    In the
event that any financial statement or certificate delivered pursuant to Section
5.1 is shown to be inaccurate (at a time when this Agreement is in effect and
unpaid Obligations under this

     

    Agreement
are outstanding (other than indemnities and other contingent obligations not yet
due and payable), and such inaccuracy, if corrected, would have led to the
application of a higher Applicable Margin for any period (an “Applicable Period”) than the
Applicable Margin applied for such Applicable Period, then (x) the Company shall
immediately deliver to Administrative Agent a correct certificate required by
Section 5.1 for such Applicable Period, (ii) the Applicable Margin shall be
determined based upon the Leverage Ratio reflected in such corrected
certificate, and (iii) the Company shall immediately pay to Administrative Agent
the accrued additional interest owing as a result of such increased Applicable
Margin for such Applicable Period; provided, that non-payment as a result of
such inaccuracy shall not in any event be deemed retroactively to be an Event of
Default pursuant to Section 8.1(a).  Nothing in this paragraph shall
limit the right of the Administrative Agent or any Lender under Section 2.10 or
Section 8.

     

    (e)  Section
1.1 of the Credit Agreement is hereby amended by adding the following sentence
to the end of the existing definition of “Base Rate”:

     

    Notwithstanding
the foregoing, the Base Rate shall at no time be less than 3.00% per
annum.

     

    (f)  Section
1.1 of the Credit Agreement is hereby amended by replacing the word “and” with
the text “, ” between clauses (i) and (j) of the definition of “Consolidated
Adjusted EBITDA” and adding the following clause (k) immediately after clause
(j) thereof:

    

    ,
(k)  any non-recurring fees, cash charges and other cash expenses
incurred in connection with the issuance of Capital Stock or Indebtedness
(whether or not successful), extinguishment of Indebtedness, refinancing
transaction or amendment or modification of any debt instrument (including any
amendment or other modification of the Senior Subordinated Notes, the Loans and
any credit facilities) and (l) any non-cash impairment charge or asset write-off
and the amortization of intangibles.

     

    (g)  the
definition of “Consolidated Excess Cash Flow” in Section 1.1 of the Credit
Agreement is hereby amended by:

     

    (1)  deleting
clause (f) thereof  and replacing it with the following:

     

    (f)  distributions
to Holdings made pursuant to Sections 6.5(c), (k) and (l);

     

    (2)  replacing
the word “and” with the text “, ” between clauses (f) and (g) and adding the
following clause (h) immediately after clause (g) thereof:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    and,
(h)  any other non-recurring cash expenses and charges added back to
Consolidated Net Income for purposes of determining Consolidated Adjusted
EBITDA, including, for the avoidance of doubt, fees, cash charges and other cash
expenses added back to Consolidated Adjusted EBITDA pursuant to clause
(k);

     

    (h)  Section
1.1 of the Credit Agreement is hereby amended by deleting the existing
definition of “Interest Period” and replacing it with the following
definition:

     

    “Interest Period” means, in
connection with a Eurodollar Rate Loan, an interest period of three- or
six-months (or nine- or twelve-months if available to all Lenders having
Revolving Exposure or Term Loan Commitments, as applicable), as selected by the
Company in the applicable Funding Notice or Conversion/Continuation Notice, (i)
initially, commencing on the Credit Date or Conversion/Continuation Date
thereof, as the case may be; and (ii) thereafter, commencing on the day on which
the immediately preceding Interest Period expires; provided, (a) if an Interest
Period would otherwise expire on a day that is not a Business Day, such Interest
Period shall expire on the next succeeding Business Day unless no further
Business Day occurs in such month, in which case such Interest Period shall
expire on the immediately preceding Business Day; (b) 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, subject to clauses (c) and (d), of this definition, end
on the last Business Day of a calendar month; (c) no Interest Period with
respect to any portion of any Class of Term Loans shall extend beyond such
Class’s Term Loan Maturity Date; and (d) no Interest Period with respect to any
portion of the Revolving Loans shall extend beyond the Revolving Commitment
Termination Date.

     

    (i)  Section
1.1 of the Credit Agreement is hereby amended by deleting the existing
definition of “Commitment Fee Percentage” and replacing it with the following
definition:

    

    “Commitment Fee Percentage”
means (i) from the Closing Date until the Second Amendment Effective Date, 0.50%
per annum and (ii) on and after the Second Amendment Effective Date, 1.00% per
annum.

    

    (j)  Section
1.1 of the Credit Agreement is hereby amended by deleting the existing
definition of “Revolving Commitment”, “Revolving Commitment Period” and
“Revolving Commitment Termination Date” and replacing them with the following
definitions:

     

    “Revolving Commitment” means
the commitment of a Lender to make or otherwise fund any Revolving Loan and to
acquire participations in Letters of Credit and Swingline Loans hereunder
and “Revolving
Commitments” means such commitments of all Lenders in the
aggregate.  The amount of each Lender’s Revolving Commitment, if any,
is equal to (A) prior to the Second Amendment Effective Date, the amount of such
Lender’s Original Revolving Commitment and (B) on and after the Second Amendment
Effective Date, the amount of such Lender’s Extended Revolving
Commitment.

     

    “Revolving Commitment Period”
means (A) with respect to the Original Revolving Commitments, the period from
the Closing Date to but excluding the Second Amendment Effective Date and (B)
with respect to the Extended Revolving Commitments, the period from the Second
Amendment Effective Date to but excluding the Revolving Commitment Termination
Date.

     

    “Revolving Commitment Termination
Date” means (A) in the case of the Original Revolving Commitments, the
Second Amendment Effective Date and (B) in the case of the Extended Revolving
Commitments, the earliest to occur of (i) the seventh (7th) anniversary of the
Closing Date, (ii) the date occurring after the Second Amendment Effective Date
on which the Revolving Commitments are permanently reduced to zero pursuant to
Section 2.13(b) or 2.14, and (iii) the date of the termination of the
Revolving Commitments pursuant to Section 8.1.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.2 Amendment
to Section 2.12.  Scheduled
Payments/Commitment Reductions.  Section 2.12(a)
of the Credit Agreement is hereby amended by deleting in their entirety the last
eight rows in the table appearing in such section and replacing such rows with
the following:

     

    
      
        	
                Fiscal
      Quarter

              	
                Tranche
      B Term Loan Installments

              
	
                August
      30, 2009

              	
                $1,000,000

              
	
                November
      30, 2009

              	
                $1,000,000

              
	
                March
      1, 2010

              	
                $1,000,000

              
	
                May
      31, 2010

              	
                $1,000,000

              
	
                August
      30, 2010

              	
                $1,000,000

              
	
                November
      29, 2010

              	
                $1,000,000

              
	
                February
      28, 2011

              	
                $1,000,000

              
	
                Tranche
      B Term Loan Maturity Date

              	
                Remainder

              

      

    

    

    1.3 Amendment
to Section 2.24.  Incremental Facilities. Section 2.24 of the Credit
Agreement is hereby
deleted in its entirety.

     

    1.4 Amendments to Section
6.5:  Restricted Junior
Payments.

     

    (a)  Section 6.5(k) of the
Credit Agreement is hereby amended by deleting it in its entirety and replacing
it with the following:

     

    (k) the
Company may make Restricted Junior Payments to Holdings and Holdings may, in
turn, make Restricted Junior Payments to Holdco to the extent necessary to
permit Holdco to make regularly scheduled payments of interest required under
the Holdco Discount Notes Indenture at the rate of 10.25% per annum payable in
cash semi-annually in arrears on April 1 and October 1 of each year (or
the next succeeding Business Day), so long as at the time of such
Restricted Junior Payment and after giving effect thereto, (i) no Default or
Event of Default shall have occurred and be continuing or shall be caused
thereby, and (ii) the Company and its Subsidiaries are in pro forma compliance
with Section 6.8(a) and (b) as of the last day of the most recently ended Fiscal
Quarter after giving effect to such Restricted Junior Payment;

     

    (b)  Section
6.5 of the Credit Agreement is hereby amended by deleting the word “and” between
clauses (k) and (l) thereto and replacing the period at the end thereof with the
following clause:

    

    ; and (m)
the Company may make Restricted Junior Payments to Holdings and Holdings may, in
turn, make Restricted Junior Payments to Holdco (and further, directly or
indirectly, to Parent, if applicable) in an aggregate amount not to exceed
$15,000,000 to the extent such proceeds are used to redeem, repay or repurchase
Indebtedness under the Parent Indenture and/or Holdco Discount Notes Indenture
and to pay related fees and expenses, including any fees and expenses in
connection with any refinancing of such Indebtedness, so long as at the time of
such Restricted Junior Payment and after giving effect thereto, (i) no Default
or Event of Default shall have occurred and be continuing or shall be caused
thereby, and (ii) the Company and its Subsidiaries are in pro forma compliance
with Section 6.8(a) and (b) as of the last day of the most recently ended Fiscal
Quarter after giving effect to such Restricted Junior Payment.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	
              1.5  

            	
              Amendments to Section
      6.8:  Financial
      Covenants.

            

    

     

               (a)  Section
6.8(a) of the Credit Agreement is hereby amended by deleting the row labeled
“Thereafter” in its entirety and replacing it with the following:

     

    
      
        	
                Fiscal
      Quarter Ending

              	
                Interest

                Coverage
      Ratio

              
	
                May
      30, 2009

              	
                3.50:1.00

              
	
                August
      29, 2009 through February 27, 2010

              	
                3.00:1.00

              
	
                May
      29, 2010

              	
                3.15:1.00

              
	
                August
      28, 2010 through November 27, 2010

              	
                3.25:1.00

              
	
                Thereafter

              	
                3.50:1.00

              

      

    

    

    (b)  Section 6.8(b) of the
Credit Agreement is hereby amended by deleting the row labeled “Thereafter” in
its entirety and replacing it with the following:

     

    
      
        	
                Fiscal
      Quarter Ending

              	
                Leverage
      Ratio

              
	
                August
      29, 2009 through August 28, 2010

              	
                3.50:1.00

              
	
                November
      27, 2010

              	
                3.25:1.00

              
	
                Thereafter

              	
                3.00:1.00

              

      

    

    

    
      	
              1.6  

            	
              Amendment
      to Section 6.9:  Fundamental
      Changes; Disposition of Assets; Acquisitions.  Section 6.9
      of the Credit Agreement is hereby amended by deleting clause (e) in its
      entirety and replacing it with the
following:

            

    

     

    (e)  Permitted
Acquisitions, the cash consideration paid for which constitutes less than
$25,000,000 when aggregated with the proceeds of all other Permitted
Acquisitions made within the same Fiscal Year and $50,000,000 in the aggregate
from the Closing Date to the date of determination (excluding, in each case,
consideration funded with the proceeds from a capital contribution to, or the
issuance of any Capital Stock of, Holdings or any of its Subsidiaries to the
extent such proceeds are not required to repay Loans pursuant to Section
2.14(c)); and

    

    
      	
              1.7  

            	
              Amendment
      to Section 6.16:  Amendments
      or Waivers of with respect to Subordinated Indebtedness and the Gold
      Consignment Agreement.  Section
      6.16 of the Credit Agreement is hereby amended by deleting clause (b) in
      its entirety and replacing it with the
  following:

            

    

     

    (b)  No
Credit Party shall, nor shall it permit any of its Subsidiaries to, change,
amend, waive, modify, supplement or renew the terms of the Gold Consignment
Agreement as in effect on the Closing Date (or enter into any replacement
thereof) if the effect of such change, amendment, waiver, modification,
supplement, renewal or

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    replacement
is to (i) increase the “Maximum Dollar Amount”, as such term was defined in
the Gold Consignment Agreement as in effect on the Closing Date;
(ii) change any event of default or add or make more restrictive any
covenant with respect to the Gold Consignment Agreement as in effect on the
Closing Date; (iii) grant additional collateral (other than that as in
effect on the Closing Date); or (iv) change or amend any other term of the
Gold Consignment Agreement as in effect on the Closing Date if such change or
amendment would (A) materially increase the monetary obligations of the
obligor or (B) confer additional material rights on the holder of the Gold
Consignment Agreement in a manner adverse to the Lenders.  The
Administrative Agent or the Collateral Agent, as applicable, may execute any
documents or instruments reasonably requested by any Credit Party in connection
with any replacement of the Gold Consignment Agreement and any Gold Consignment
Intercreditor Agreement required to be entered into pursuant to Section 6.2(q)
in connection therewith.

    

    1.8 Extended
Revolving Commitments.  Subject to the
terms and conditions to the effectiveness in this Amendment, during the
Revolving Commitment Period, each Lender executing this Amendment and identified
on Appendix A to this Amendment (each, a “Revolving Lender”) severally
represents, warrants, agrees, covenants and reaffirms its obligation to (i) make
Revolving Loans to the Company in accordance with Section 2.2(a) of the Credit
Agreement and in an aggregate amount up to but not exceeding such Lender’s
Revolving Commitment as set forth on Appendix A to this Amendment, (ii)
irrevocably purchase from Issuing Bank a participation in each Letter of Credit
outstanding on the Second Amendment Effect Date or issued, extended or amended
thereafter (and any drawings honoured under such Letters of Credit) in
accordance with Section 2.4(e) of the Credit Agreement and (iii) irrevocably
purchase from the Swing Line Lender a participation in each Swing Line Loan in
accordance with Section 2.3(b)(vi) of the Credit Agreement.  Each
Credit Party hereby represents, warrants, agrees, covenants and reaffirms (1)
that it is not aware of any defense, set off, claim or counterclaim against any
Agent or Revolving Lender in regard to its obligations in respect of such
Revolving Commitments and (2) its obligation to pay such obligations in respect
of such Revolving Commitments in accordance with the terms and conditions of
this Agreement and the other Credit Documents.

     

    

    1.9 Amendment
to Exhibit L:  Joinder Agreement. Exhibit L of the Credit
Agreement is hereby
deleted in its entirety.

     

    
      	
              SECTION
      II.  

            	
              CONDITIONS
      TO EFFECTIVENESS

            

    

     

    This
Amendment shall become effective as of the date hereof only upon the
satisfaction of all of the following conditions precedent (the date of
satisfaction of such conditions being referred to herein as the “Second Amendment Effective
Date”):

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Execution. The Administrative
Agent shall have received (i) a counterpart signature page of this Amendment
duly executed by each of the Credit Parties, (ii) consent and authorization from
the Requisite Lenders and all Lenders holding Revolving Commitments to execute
this Amendment on their behalf.

     

    A. Consent Fees.  The
Company shall have paid to (i) each Lender that executes this Amendment on or
prior to the Second Amendment Effective Date, an amendment fee equal to 0.50% of
the aggregate amount of such Lender’s outstanding Loans and Extended Revolving
Commitments as of the Second Amendment Effective Date (after giving effect to
this Amendment) and (ii) each Lender holding Extended Revolving Commitments that
executes this Amendment on or prior to the Second Amendment Effective Date, an
amendment fee equal to 1.00% of the aggregate amount of such Lender’s Extended
Revolving Commitments as of the Second Amendment Effective Date (after giving
effect to this Amendment).

     

    B. No Revolving Loans. No
Revolving Loans shall be outstanding on the Second Amendment Effective
Date.

     

    C. Other Fees.  The
Administrative Agent shall have received all fees and other amounts due and
payable on or prior to the Second Amendment Effective Date, including, to the
extent invoiced, reimbursement or other payment of all reasonable out-of-pocket
expenses required to be reimbursed or paid by the Company hereunder or any other
Credit Document.

     

    D. Necessary Consents. Each
Credit Party shall have obtained all material consents necessary or advisable in
connection with the transactions contemplated by this Amendment.

     

    E. Opinions of Counsel to Credit
Parties. The Administrative Agent and the Revolving Lenders shall have
received originally executed copies of the favorable written opinions of Ropes
& Gray LLP, counsel for Credit Parties, addressed to the Administrative
Agent and the Revolving Lenders, as to such matters as the Administrative Agent
may reasonably request, dated as of the Second Amendment Effective Date and
otherwise in form and substance reasonably satisfactory to the Administrative
Agent (and each Credit Party hereby instructs such counsel to deliver such
opinions to the Administrative Agent and the Revolving Lenders).

     

    F. Other
Documents.  The Administrative Agent and the Lenders shall have
received such other documents, information or agreements regarding Credit
Parties as the Administrative Agent or the Collateral Agent may reasonably
request.

     

    
      	
              SECTION
      III.  

            	
              REPRESENTATIONS
      AND WARRANTIES

            

    

     

    In order
to induce Lenders to enter into this Amendment and to amend the Credit Agreement
in the manner provided herein, each Credit Party which is a party hereto
represents and warrants to each Lender that the following statements are true
and correct in all material respects:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Corporate Power and
Authority.  Such Credit Party has all requisite power and
authority to enter into this Amendment and to carry out the transactions
contemplated by, and perform its obligations under, the Credit Agreement as
amended by this Amendment (the “Amended Agreement”) and the
other Credit Documents.

     

    A. Authorization of
Agreements.  The execution and delivery of this Amendment and
the performance of the Amended Agreement and the other Credit Documents have
been duly authorized by all necessary action on the part of such Credit
Party.

     

    B. No Conflict.  The
execution and delivery by such Credit Party of this Amendment and the
performance by such Credit Party of the Amended Agreement and the other Credit
Documents do not and will not (i) violate (A) any provision of any law, statute,
rule or regulation, or of the certificate or articles of incorporation or
partnership agreement, other constitutive documents or by-laws of Holdings, the
Company or any Credit Party or (B) any applicable order of any court or any
rule, regulation or order of any Governmental Authority, (ii) be in
conflict with, result in a breach of or constitute (alone or with notice or
lapse of time or both) a default under any Contractual Obligation of the
applicable Credit Party, where any such conflict, violation, breach or default
referred to in clause (i) or (ii) of this Section III.C., individually or in the
aggregate could reasonably be expected to have a Material Adverse Effect, (iii)
except as permitted under the Amended Agreement, result in or require the
creation or imposition of any Lien upon any of the properties or assets of each
Credit Party (other than any Liens created under any of the Credit Documents in
favor of Collateral Agent on behalf of the Secured Parties), or (iv) require any
approval of stockholders, members or partners or any approval or consent of any
Person under any Contractual Obligation of each Credit Party, except for such
approvals or consents which will be obtained on or before the Second Amendment
Effective Date and except for any such approvals or consents the failure of
which to obtain will not have a Material Adverse Effect.

     

    C. Governmental
Consents.  No action, consent or approval of, registration or
filing with or any other action by any Governmental Authority is or will be
required in connection with the execution and delivery by such Credit Party of
this Amendment and the performance by such Credit Party of the Amended Agreement
and the other Credit Documents to which it is a party, except for such actions,
consents and approvals the failure to obtain or make which could not reasonably
be expected to result in a Material Adverse Effect or which have been obtained
and are in full force and effect.

     

    D. Binding
Obligation.  This Amendment and the Amended Agreement have been
duly executed and delivered by such Credit Party and this Amendment, the Amended
Agreement and each other Credit Document to which it is a party each constitutes
a legal, valid and binding obligation of such Credit Party to the extent a party
thereto, enforce­able against such Credit Party in accordance with its
terms, except as enforceability may be limited by bankruptcy, insolvency,
moratorium, reorganization or other similar laws affecting creditors’ rights
generally and except as enforceability may be limited by general principles of
equity (regardless of whether such enforceability is considered in a proceeding
in equity or at law).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    E. Incorporation of Representations and
Warranties from Credit Agreement. The representations and warranties of
such Credit Party contained in Section 4 of the Amended Agreement and each other
Credit Document to which it is a party are and will be true and correct in all
material respects on and as of the Second Amendment Effective Date to the same
extent as though made on and as of that date, except to the extent such
representations and warranties specifically relate to an earlier date, in which
case they were true and correct in all material respects on and as of such
earlier date.

     

    F. Absence of
Default.  No event has occurred and is continuing or will
result from the consummation of the transactions contemplated by this Amendment
that would constitute an Event of Default or a Default.

     

    
      	
              SECTION
      IV.  

            	
              ACKNOWLEDGMENT,
      CONSENT AND CONFIRMATION

            

    

     

    Each
Guarantor hereby acknowledges that it has reviewed the terms and provisions of
the Credit Agreement and this Amendment and consents to the amendment of the
Credit Agreement effected pursuant to this Amendment, including the extension of
the new Revolving Commitments and the other transactions contemplated
thereby.  The Company and each Guarantor hereby confirms its
respective guarantees, pledges, grants of security interests and other
agreements, as applicable, under each Credit Document to which it is a party or
otherwise bound, including under each of the Collateral Documents to which it is
a party, and that notwithstanding the effectiveness of this Amendment and the
extension of the new Revolving Commitments and the other transactions
contemplated thereby, such guarantees, pledges, grants of security interests and
other agreements shall continue to be in full force and effect and shall accrue
to the benefit of the Secured Parties under the Amended Agreement and the other
Credit Documents, which for the avoidance of doubt includes the Revolving
Lenders providing Revolving Commitments pursuant to Section 1.8 of this
Amendment.

     

    Each
Guarantor acknowledges and agrees that (i) notwithstanding the conditions
to effectiveness set forth in this Amendment, such Guarantor is not required by
the terms of the Credit Agreement or any other Credit Document to consent to the
amendments to the Credit Agreement effected pursuant to this Amendment and (ii)
nothing in the Credit Agreement, this Amendment or any other Credit Document
shall be deemed to require the consent of such Guarantor to any future
amendments to the Credit Agreement.

     

    
      	
              SECTION
      V.  

            	
              MISCELLANEOUS

            

    

     

    A. Reference
to and Effect on the Credit Agreement and the Other Credit
Documents.

     

    (i) On and
after the Second Amendment Effective Date, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like
import referring to the Credit Agreement, and each reference in the other Credit
Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like
import referring to the Credit Agreement shall mean and be a reference to the
Credit Agreement as amended by this Amendment.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (ii) Except as
specifically amended by this Amendment, the Credit Agreement and the other
Credit Documents shall remain in full force and effect and are hereby ratified
and confirmed.

     

    (iii) The
execution, delivery and performance of this Amendment shall not constitute a
waiver of any provision of, or operate as a waiver of any right, power or remedy
of any Agent, Lender or Credit Party under, the Credit Agreement or any of the
other Credit Documents.

     

    B. Headings.  Section and
Subsection headings in this Amendment are included herein for convenience of
reference only and shall not constitute a part of this Amendment for any other
purpose or be given any substantive effect.

     

    C. Applicable
Law.  THIS AMENDMENT AND THE RIGHTS AND OB­LIGATIONS OF THE
PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING NEW YORK GENERAL
OBLIGATIONS LAW SECTION 5-1401) WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES
THEREOF.

     

    D. Counterparts.  This Amendment
may be executed in any number of counter­parts and by different parties
hereto in separate counterparts, each of which when so executed and delivered
shall be deemed an original, but all such counterparts together shall constitute
but one and the same instrument; signature pages may be detached from multiple
separate counterparts and attached to a single counterpart so that all signature
pages are physically attached to the same document.  Delivery of an
executed counterpart of a signature page of this Amendment by facsimile
transmission or electronic transmission (in pdf format) will be effective as
delivery of a manually executed counterpart hereof.

     

    E. Amendment
and Restatement.  To facilitate
reference to the provisions of the Credit Agreement, as amended by this
Amendment, each Lender executing this Amendment hereby authorizes the
Administrative Agent, on its behalf, to enter into an amendment and restatement
of the Credit Agreement, at the Administrative Agent's option, as amended by
this Amendment (including without limitation, adding or deleting (as applicable)
each reference to the defined terms deleted pursuant to Section 1.1 of this
Amendment); provided that any such amendment and restatement shall be
distributed to each Lender.

     

    [Remainder of this page intentionally
left blank.]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be duly executed and delivered by
their respective officers thereunto duly authorized as of the date first written
above.

    

    
      	
               
      

            	
              COMPANY:

            	
              AMERICAN
      ACHIEVEMENT CORPORATION

            

    

    

    

    By:  /s/ Kris
Radhakrishnan

    Name: Kris Radhakrishnan

    Title: Chief Financial Officer and
Treasurer

    
      
        
          [Signature
Page to Second Amendment]

        

         

      

      
         

        
          

        

      

      
         

      

    

    

    GUARANTORS:                                                                           AAC HOLDING CORP.

    

    

    By:  /s/ Kris
Radhakrishnan

    Name:
Kris Radhakrishnan

    Title:
Chief Financial Officer and Treasurer

    

    EDUCATIONAL
COMMUNICATIONS, INC.

    COMMEMORATIVE
BRANDS, INC.

    TAYLOR
SENIOR HOLDING CORP.

    TP
HOLDING CORP.

    TAYLOR
PUBLISHING COMPANY

    CBI
NORTH AMERICA, INC.

    

    

    By:  /s/ Kris
Radhakrishnan

    Name:
Kris Radhakrishnan

    Title:
Chief Financial Officer and Treasurer

    

    TAYLOR
PUBLISHING MANUFACTURING, L.P.

    By:           Taylor
Publishing Company, its General Partner

    

    

    By:  /s/ Kris
Radhakrishnan

    Name:
Kris Radhakrishnan

    Title:
Chief Financial Officer and Treasurer

    

    TAYLOR
MANUFACTURING HOLDINGS, LLC

    By:           Taylor
Publishing Company, its Sole Member

    

    

    By:  /s/ Kris
Radhakrishnan

    Name:
Kris Radhakrishnan

    Title:
Chief Financial Officer and Treasurer

    

    
      
        
          [Signature
Page to Second Amendment]

        

         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              ADMINISTRATIVE
      AGENT:

            	
              GOLDMAN
      SACHS CREDIT PARTNERS L.P.,

            

    

    
      	
               
      

            	
              As
      Administrative Agent

            

    

    

    

    By:  /s/ Elizabeth
Fischer

    Authorized
Signatory

    

    
      
        
          [Signature
Page to Second Amendment]

        

         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              LENDERS:

            	
              DEUTSCHE BANK AG CAYMAN ISLANDS
      BRANCH, as Issuing Bank, Swing Line Lender and a
    Lender

            

    

    

    

    By:  /s/ Erin
Morrissey

            Name:
Erin Morrissey

            Title:
Vice President

    

    

    By:  /s/ Evelyn
Thierry

            Name:
Evelyn Thierry

            Title:
Vice President

    
      
        
          [Signature
Page to Second Amendment]

        

         

      

      
         

        
          

        

      

      
         

      

    

    CIT LENDING SERVICES
CORPORATION, as a
Lender

    

    

    By:  /s/ Jeffrey
Ulmer

            Name:
Jeffrey Ulmer

            Title:
Senior Vice President

    
      
        
          [Signature
Page to Second Amendment]

        

         

      

      
         

        
          

        

      

      
         

      

    

    GENERAL ELECTRIC CAPITAL
CORPORATION, as a
Lender

    

    

    By:  /s/ Marie G.
Mollo

            Name:
Marie G. Mollo

            Title:
Duly Authorized Signatory

    
      
        
          [Signature
Page to Second Amendment]

        

         

      

      
         

        
          

        

      

      
         

      

    

    NATIONAL CITY BANK, as a Lender

    

    

    By:  /s/ James
Ritchie

            Name:
James Ritchie

            Title:
Managing Director

    

    
      
        
          [Signature
Page to Second Amendment]

        

         

      

      
         

        
          

        

      

      
         

      

    

    APPENDIX
A

    TO
SECOND AMENDMENT

    

    

    Extended
Revolving Commitments

     

    

     

    
      
        	
                Lender

              	
                Revolving
      Commitment

              	
                Pro
      Rata Share

              
	
                Deutsche
      Bank AG Cayman Islands Branch

              	
                $1,923,076.92

              	
                7.69%

              
	
                CIT
      Lending Services Corporation

              	
                $6,250,000.00

              	
                25.00%

              
	
                General
      Electric Capital Corporation

              	
                $16,826,923.08

              	
                67.31%

              
	
                Total

              	
                $25,000,000

              	
                100%

              

      

    

    

    
      
        
          Appendix
A

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