Document:

Exhibit 4.2

 

SAMSONITE
CORPORATION

FLOATING
RATE SENIOR NOTES DUE 2010

SUPPLEMENTAL
INDENTURE

DATED
AS OF DECEMBER 6, 2006

THE
BANK OF NEW YORK,

AS
TRUSTEE

 1
 

 

 

SUPPLEMENTAL INDENTURE, dated as of December 6, 2006 (this “Supplemental
Indenture”), between SAMSONITE CORPORATION, a Delaware corporation (the “Company”),
and THE BANK OF NEW YORK, a New York banking corporation, as trustee (the “Trustee”).

WHEREAS, the Company and the Trustee are parties to an Indenture, dated
as of June 9, 2004 (the “Indenture”), pursuant to which the Company issued its
Floating Rate Senior Notes Due 2011 (the “Notes”);

WHEREAS, the Board of Directors of the Company has determined that it
is in the best interests of the Company to authorize and approve the proposed
amendments to the Indenture (the “Proposed Amendments”);

WHEREAS, Section 8.02 of the Indenture provides that the Company and
the Trustee may amend the Indenture and the Notes with the written consent of
the Holders of not less than a majority in aggregate principal amount of the
Notes then outstanding;

WHEREAS, the Company has distributed an Offers to Purchase and Consent
Solicitations Statement, dated November 21, 2006 (the “Statement”), to the
Holders of the Notes in connection with the Proposed Amendments as described in
the Statement;

WHEREAS, the Holders of not less than a majority in aggregate principal
amount of the Notes outstanding have approved the Proposed Amendments to the
provisions of the Indenture; and

WHEREAS, the execution and delivery of this instrument have been duly
authorized and all conditions and requirements necessary to make this
instrument a valid and binding agreement have been duly performed and complied
with;

NOW, THEREFORE, for and in consideration of the premises and other good
and valuable consideration, the receipt and sufficiency of which hereby are
acknowledged, it is mutually covenanted and agreed, for the equal proportionate
benefit of all Holders of the Notes, as follows:

ARTICLE
1.          AMENDMENTS TO ARTICLE
1—DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.01. 
Upon the effective date, certain definitions shall be deemed deleted
when references to such definitions would be eliminated as a result of the
amendments described herein.

ARTICLE
2.          AMENDMENTS TO ARTICLE
4—COVENANTS

Section 2.01. 
Section 4.02 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.02.             Intentionally omitted.

Section 2.02. 
Section 4.03 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.03.             Intentionally omitted.

Section 2.03. 
Section 4.04(b) of the Indenture is hereby amended to read in its
entirety as set forth below:

 (b)           
                 Intentionally omitted.

Section 2.04. 
Section 4.05 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.05.             Intentionally omitted.

Section 2.05. 
Section 4.06 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.06.             Intentionally omitted.

Section 2.06. 
Section 4.07 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.07.             Intentionally omitted.

Section 2.07. 
Section 4.08 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.08.             Intentionally omitted.

Section 2.08. 
Section 4.09 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.09.             Intentionally omitted.

 2
 

 

 

Section 2.09. 
Section 4.10 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.10.             Intentionally omitted.

Section 2.10. 
Section 4.11 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.11.             Intentionally omitted.

Section 2.11. 
Section 4.12 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.12.             Intentionally omitted.

Section 2.12. 
Section 4.15 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.15.             Intentionally omitted.

Section 2.13. 
Section 4.16 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.16.             Intentionally omitted.

Section 2.14. 
Section 4.17 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.17.             Intentionally omitted.

ARTICLE
3.          AMENDMENTS TO ARTICLE
5—SUCCESSOR CORPORATION

Section 3.01. 
Section 5.01 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 5.01.             Intentionally omitted.

ARTICLE
4.          AMENDMENTS TO ARTICLE
6—DEFAULTS AND REMEDIES

Section 4.01. 
Section 6.01(3) of the Indenture is hereby amended to read in its
entirety as set forth below:

(3)           Intentionally
omitted.

Section 4.02. 
Section 6.01(4) of the Indenture is hereby amended to read in its
entirety as set forth below:

(4)           Intentionally
omitted.

Section 4.03. 
Section 6.01(5) of the Indenture is hereby amended to read in its
entirety as set forth below:

(5)           Intentionally
omitted.

Section 4.04. 
Section 6.01(6) of the Indenture is hereby amended to read in its
entirety as set forth below:

(6)           Intentionally
omitted.

Section 4.05. 
Section 6.01(7) of the Indenture is hereby amended to read in its
entirety as set forth below:

(7)           Intentionally
omitted.

ARTICLE
5.          AMENDMENTS TO ARTICLE
9—DISCHARGE OF INDENTURE; DEFEASANCE

Section 5.01. 
Section 9.04(2) of the Indenture is hereby amended to read in its
entirety as set forth below:

(2)           Intentionally
omitted.

Section 5.02. 
Section 9.04(4) of the Indenture is hereby amended to read in its
entirety as set forth below:

(4)           Intentionally
omitted.

Section 5.03. 
Section 9.04(6) of the Indenture is hereby amended to read in its
entirety as set forth below:

(6)           Intentionally
omitted.

Section 5.04. 
Section 9.04(7) of the Indenture is hereby amended to read in its
entirety as set forth below:

(7)           Intentionally
omitted.

 3
 

 

 

ARTICLE
6.          AMENDMENTS TO THE NOTES

Section 6.01. 
The Notes include certain of the foregoing provisions from the
Indenture. Upon the effective date, such provisions from the Notes shall be
deemed deleted.

ARTICLE
7.          MISCELLANEOUS

Section 7.01. 
The Trustee accepts the trusts created by the Indenture, as amended and
supplemented by this Supplemental Indenture, and agrees to perform the same
upon the terms and conditions of the Indenture, as amended and supplemented by
this Supplemental Indenture.

Section 7.02. 
All capitalized terms used and not defined herein shall have the
respective meanings assigned to them in the Indenture.

Section 7.03. 
Upon execution and delivery of this Supplemental Indenture, the terms
and conditions of this Supplemental Indenture shall be part of the terms and
conditions of the Indenture for any and all purposes, and all the terms and
conditions of both shall be read together as though they constitute one and the
same instrument, except that in case of conflict, the provisions of this
Supplemental Indenture will control. Notwithstanding an earlier execution date,
the provisions of this Supplemental Indenture shall not become operative until
the date upon which the Company accepts the Notes for purchase and payment
pursuant to the Statement.  The Company
shall promptly notify the Trustee in writing that this Supplemental Indenture
has become operative.

Section 7.04. 
Each of the Company and the Trustee hereby confirms and reaffirms the
Indenture in every particular except as amended and supplemented by this
Supplemental Indenture.

Section 7.05. 
All covenants and agreements in this Supplemental Indenture by the
Company or the Trustee shall bind their respective successors and assigns,
whether so expressed or not.

Section 7.06. 
In case any provisions in this Supplemental Indenture shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

Section 7.07. 
Nothing in this Supplemental Indenture, express or implied, shall give
to any Person, other than the parties hereto and their successors under the
Indenture and the Holders of the Notes, any benefit or any legal or equitable
right, remedy or claim under the Indenture.

Section 7.08. 
The parties may sign any number of copies of this Supplemental
Indenture.  Each signed copy shall be an
original, but all of them together shall represent the same agreement.  One signed copy is enough to prove this Supplemental
Indenture.

Section 7.09. 
This Supplemental Indenture shall be governed by and construed in
accordance with the laws of the State of New York, as applied to contracts made
and performed within the State of New York, without regard to principles of
conflicts of law.  Each of the parties
hereto agrees to submit to the jurisdiction of the courts of the State of New
York in any action or proceeding arising out of or relating to this
Supplemental Indenture.

Section 7.10. 
All provisions of this Supplemental Indenture shall be deemed to be
incorporated in, and made a part of, the Indenture; and the Indenture, as
amended and supplemented by this Supplemental Indenture, shall be read, taken
and construed as one and the same instrument.

Section 7.11. 
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 are made solely by
the Company.

 4
 

 

 

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

	
   

  	
  SAMSONITE CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard H. Wiley

  
	
   

  	
   

  	
  Name: 

  	
  Richard H. Wiley

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer, Treasurer and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Isaura Tolentino

  
	
   

  	
   

  	
  Name:

  	
  Isaura Tolentino

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  

 

[Signature Page to Floating Rate Notes Supplemental
Indenture]

 

 5Exhibit
10.1

 

$100,000,000

CREDIT AGREEMENT

among

SHUFFLE MASTER, INC.,

as the BORROWER,

the Subsidiary Guarantors party hereto from time to time,

and

DEUTSCHE BANK
TRUST COMPANY AMERICAS,

as a LENDER and as the ADMINISTRATIVE AGENT,

and the other Lenders party hereto from time to time

Dated as of
November 30, 2006

 

DEUTSCHE BANK
SECURITIES INC. and WELLS FARGO BANK, N.A.,

as JOINT LEAD ARRANGERS and BOOK MANAGERS

WELLS FARGO BANK,
N.A., as SYNDICATION AGENT

 

 

TABLE OF CONTENTS

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 1.

  	
  Definitions and Accounting Terms

  	
  1

  
	
  1.01.

  	
  Defined Terms

  	
  1

  
	
  1.02.

  	
  Computation of Time Periods; Other Definitional
  Provisions

  	
  26

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  Amount and Terms of Credit

  	
  26

  
	
  2.01.

  	
  The Loans

  	
  26

  
	
  2.02.

  	
  Notice of Borrowing

  	
  28

  
	
  2.03.

  	
  Disbursement of Funds

  	
  29

  
	
  2.04.

  	
  Notes

  	
  30

  
	
  2.05.

  	
  Conversions

  	
  30

  
	
  2.06.

  	
  Maturity Date

  	
  31

  
	
  2.07.

  	
  Interest

  	
  31

  
	
  2.08.

  	
  Interest Periods

  	
  32

  
	
  2.09.

  	
  Increased Costs, Illegality, etc.

  	
  33

  
	
  2.10.

  	
  Compensation

  	
  35

  
	
  2.11.

  	
  Change of Lending Office

  	
  35

  
	
  2.12.

  	
  Replacement of Lenders

  	
  35

  
	
  2.13.

  	
  Incremental Commitments

  	
  36

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  Letters of Credit

  	
  38

  
	
  3.01.

  	
  Letters of Credit

  	
  38

  
	
  3.02.

  	
  Maximum Letter of Credit Outstandings; Final
  Maturities

  	
  38

  
	
  3.03.

  	
  Letter of Credit Requests; Minimum Stated Amount

  	
  39

  
	
  3.04.

  	
  Letter of Credit Participations

  	
  40

  
	
  3.05.

  	
  Agreement to Repay Letter of Credit Drawings

  	
  41

  
	
  3.06.

  	
  Increased Costs

  	
  42

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  Commitment Commission; Fees; Reductions of Revolving
  Loan Commitment

  	
  43

  
	
  4.01.

  	
  Fees

  	
  43

  
	
  4.02.

  	
  Voluntary Termination of Unutilized Revolving Loan
  Commitments

  	
  44

  
	
  4.03.

  	
  Mandatory Reduction of Revolving Loan Commitments

  	
  45

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  Prepayments; Payments; Taxes

  	
  45

  
	
  5.01.

  	
  Voluntary Prepayments

  	
  45

  
	
  5.02.

  	
  Application of Prepayments; Maturity

  	
  46

  
	
  5.03.

  	
  Method and Place of Payment

  	
  46

  
	
  5.04.

  	
  Net Payments

  	
  46

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  Conditions Precedent to Credit Events on the Initial
  Borrowing Date

  	
  47

  
	
  6.01.

  	
  Effective Date; Notes

  	
  47

  
	
  6.02.

  	
  Opinions of Counsel

  	
  48

  
	
  6.03.

  	
  Company Documents; Proceedings; etc.

  	
  48

  

 

 i
 

 

 

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  6.04.

  	
  Adverse Change, Approvals

  	
  48

  
	
  6.05.

  	
  Litigation

  	
  49

  
	
  6.06.

  	
  Guaranty

  	
  49

  
	
  6.07.

  	
  Security Agreement

  	
  49

  
	
  6.08.

  	
  Financial Statements; Projections

  	
  50

  
	
  6.09.

  	
  Solvency Certificate; Insurance Certificates, etc.

  	
  50

  
	
  6.10.

  	
  Fees, etc.

  	
  50

  
	
  6.11.

  	
  Officer’s Certificate

  	
  50

  
	
  6.12.

  	
  Consummation of the Refinancing

  	
  50

  
	
  6.13.

  	
  Patriot Act Compliance

  	
  51

  
	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  Conditions Precedent to All Credit Events

  	
  51

  
	
  7.01.

  	
  No Default; Representations and Warranties

  	
  51

  
	
  7.02.

  	
  Notice of Borrowing; Letter of Credit Request

  	
  51

  
	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  Representations, Warranties and Agreements

  	
  52

  
	
  8.01.

  	
  Company Status

  	
  52

  
	
  8.02.

  	
  Power and Authority

  	
  52

  
	
  8.03.

  	
  No Violation

  	
  52

  
	
  8.04.

  	
  Approvals

  	
  53

  
	
  8.05.

  	
  Financial Statements; Financial Condition;
  Undisclosed Liabilities; Projections

  	
  53

  
	
  8.06.

  	
  Litigation

  	
  54

  
	
  8.07.

  	
  True and Complete Disclosure

  	
  54

  
	
  8.08.

  	
  Use of Proceeds; Margin Regulations

  	
  54

  
	
  8.09.

  	
  Tax Returns and Payments

  	
  54

  
	
  8.10.

  	
  Security Documents

  	
  55

  
	
  8.11.

  	
  Compliance with ERISA

  	
  55

  
	
  8.12.

  	
  Properties

  	
  55

  
	
  8.13.

  	
  [Reserved]

  	
  56

  
	
  8.14.

  	
  Subsidiaries

  	
  56

  
	
  8.15.

  	
  Compliance with Statutes, etc.

  	
  56

  
	
  8.16.

  	
  Investment Company Act

  	
  56

  
	
  8.17.

  	
  Environmental Matters

  	
  56

  
	
  8.18.

  	
  Employment and Labor Relations

  	
  56

  
	
  8.19.

  	
  Intellectual Property, etc.

  	
  57

  
	
  8.20.

  	
  Indebtedness

  	
  58

  
	
  8.21.

  	
  Insurance

  	
  58

  
	
  8.22.

  	
  Foreign Assets Control Regulations, etc.

  	
  58

  
	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  Affirmative Covenants

  	
  58

  
	
  9.01.

  	
  Information Covenants

  	
  58

  
	
  9.02.

  	
  Books, Records and Inspections

  	
  61

  
	
  9.03.

  	
  Maintenance of Property; Insurance

  	
  61

  
	
  9.04.

  	
  Existence; Franchises

  	
  61

  
	
  9.05.

  	
  Compliance with Statutes, etc.

  	
  62

  

 

 ii
 

 

 

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  9.06.

  	
  Compliance with Environmental Laws

  	
  62

  
	
  9.07.

  	
  ERISA

  	
  62

  
	
  9.08.

  	
  Performance of Obligations

  	
  63

  
	
  9.09.

  	
  Payment of Taxes and Obligations

  	
  63

  
	
  9.10.

  	
  Use of Proceeds

  	
  63

  
	
  9.11.

  	
  Additional Security; Further Assurances; etc.

  	
  63

  
	
  9.12.

  	
  Additional Subsidiaries

  	
  66

  
	
  9.13.

  	
  Permitted Acquisitions

  	
  66

  
	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
  Negative Covenants

  	
  67

  
	
  10.01.

  	
  Liens

  	
  67

  
	
  10.02.

  	
  Consolidation, Merger, Purchase or Sale of Assets,
  etc.

  	
  70

  
	
  10.03.

  	
  Dividends

  	
  72

  
	
  10.04.

  	
  Indebtedness

  	
  73

  
	
  10.05.

  	
  Advances, Investments and Loans

  	
  75

  
	
  10.06.

  	
  Transactions with Affiliates

  	
  78

  
	
  10.07.

  	
  [Reserved]

  	
  78

  
	
  10.08.

  	
  Interest Expense Coverage Ratio

  	
  78

  
	
  10.09.

  	
  Total Leverage Ratio

  	
  79

  
	
  10.10.

  	
  Modifications of Certificate of Incorporation, By-Laws
  and Certain Other Agreements; Payment of Other Debt

  	
  79

  
	
  10.11.

  	
  Limitation on Certain Restrictions on Subsidiaries

  	
  79

  
	
  10.12.

  	
  Limitation on Issuance of Equity Interests

  	
  80

  
	
  10.13.

  	
  Business; etc.

  	
  80

  
	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
  Events of Default

  	
  80

  
	
  11.01.

  	
  Payments

  	
  80

  
	
  11.02.

  	
  Representations, etc.

  	
  81

  
	
  11.03.

  	
  Covenants

  	
  81

  
	
  11.04.

  	
  Default Under Other Agreements

  	
  81

  
	
  11.05.

  	
  Bankruptcy, etc.

  	
  81

  
	
  11.06.

  	
  Security Documents

  	
  82

  
	
  11.07.

  	
  ERISA

  	
  82

  
	
  11.08.

  	
  Guaranties

  	
  82

  
	
  11.09.

  	
  Judgments

  	
  82

  
	
  11.10.

  	
  Change of Control

  	
  83

  
	
   

  	
   

  	
   

  
	
  SECTION 12.

  	
  The Administrative Agent

  	
  83

  
	
  12.01.

  	
  Appointment

  	
  83

  
	
  12.02.

  	
  Nature of Duties

  	
  83

  
	
  12.03.

  	
  Lack of Reliance on the Administrative Agent

  	
  84

  
	
  12.04.

  	
  Certain Rights of the Administrative Agent

  	
  84

  
	
  12.05.

  	
  Reliance

  	
  85

  
	
  12.06.

  	
  Indemnification

  	
  85

  
	
  12.07.

  	
  The Administrative Agent in Its Individual Capacity

  	
  85

  

 

 iii
 

 

 

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  12.08.

  	
  Resignation by the Administrative Agent, Issuing
  Lender and Swingline Lender

  	
  85

  
	
  12.09.

  	
  Collateral Matters

  	
  86

  
	
  12.10.

  	
  Delivery of Information

  	
  87

  
	
   

  	
   

  	
   

  
	
  SECTION 13.

  	
  Miscellaneous

  	
  87

  
	
  13.01.

  	
  Payment of Expenses, etc.

  	
  87

  
	
  13.02.

  	
  Right of Setoff

  	
  89

  
	
  13.03.

  	
  Notices

  	
  89

  
	
  13.04.

  	
  Benefit of Agreement; Assignments; Participations

  	
  89

  
	
  13.05.

  	
  No Waiver; Remedies Cumulative

  	
  91

  
	
  13.06.

  	
  Payments Pro Rata

  	
  92

  
	
  13.07.

  	
  Calculations; Computations

  	
  92

  
	
  13.08.

  	
  GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE;
  WAIVER OF JURY TRIAL

  	
  93

  
	
  13.09.

  	
  Counterparts

  	
  94

  
	
  13.10.

  	
  Effectiveness

  	
  94

  
	
  13.11.

  	
  Headings Descriptive

  	
  94

  
	
  13.12.

  	
  Amendment or Waiver; etc.

  	
  94

  
	
  13.13.

  	
  Survival

  	
  96

  
	
  13.14.

  	
  Domicile of Loans

  	
  96

  
	
  13.15.

  	
  Register

  	
  96

  
	
  13.16.

  	
  Confidentiality

  	
  97

  
	
  13.17.

  	
  Special Provisions Regarding Pledges of Equity
  Interests in, and Promissory Notes Owed by, Persons Not Organized in the
  United States

  	
  97

  
	
  13.18.

  	
  Integration

  	
  98

  
	
  13.19.

  	
  USA Patriot Act

  	
  98

  

 

	
  SCHEDULE I

  	
  Revolving Loan Commitments of Lenders and Addresses
  for Notice

  
	
  SCHEDULE II

  	
  Subsidiaries

  
	
  SCHEDULE III

  	
  Existing Indebtedness

  
	
  SCHEDULE IV

  	
  Existing Liens

  
	
  SCHEDULE V

  	
  Existing Investments

  
	
  SCHEDULE VI

  	
  Proposed Assets to Be Sold

  
	
  SCHEDULE VII

  	
  Intellectual Property Legal Proceedings

  
	
  SCHEDULE VIII

  	
  Post-Closing Deliverables

  
	
   

  	
   

  
	
  EXHIBIT A-1

  	
  Form of Notice of Borrowing

  
	
  EXHIBIT A-2

  	
  Form of Notice of Conversion/Continuation

  
	
  EXHIBIT B-1

  	
  Form of Revolving Note

  
	
  EXHIBIT B-2

  	
  Form of Swingline Note

  
	
  EXHIBIT C

  	
  Form of Letter of Credit Request

  
	
  EXHIBIT D

  	
  Form of Section 5.04(b)(ii) Certificate

  
	
  EXHIBIT E-1

  	
  Form of Opinion of Latham & Watkins LLP, special
  counsel to the Borrower

  

 

 iv
 

 

 

	
  EXHIBIT E-2

  	
  Form of Opinion of Larkin Hoffman Daly &
  Lindgren, Ltd., Minnesota counsel to the Borrower

  
	
  EXHIBIT E-3

  	
  Form of Opinion of Jones Vargas, Nevada counsel to
  the Borrower

  
	
  EXHIBIT F

  	
  Form of Officers’ Certificate

  
	
  EXHIBIT G

  	
  Form of Guaranty

  
	
  EXHIBIT H

  	
  Form of Security Agreement

  
	
  EXHIBIT I

  	
  Form of Solvency Certificate

  
	
  EXHIBIT J

  	
  Form of Compliance Certificate

  
	
  EXHIBIT K

  	
  Form of Assignment and Assumption Agreement

  
	
  EXHIBIT L

  	
  Form of Intercompany Note

  
	
  EXHIBIT M

  	
  Form of Incremental Commitment Agreement

  

 

 v

CREDIT AGREEMENT, dated as of November 30, 2006,
among SHUFFLE MASTER, INC., a Minnesota corporation (the “Borrower”),
DEUTSCHE BANK TRUST COMPANY AMERICAS as a Lender and the other Lenders party
hereto from time to time, DEUTSCHE BANK TRUST COMPANY AMERICAS, as
Administrative Agent (in such capacity, the “Administrative Agent”),
DEUTSCHE BANK SECURITIES INC. and WELLS FARGO BANK, N.A., as Joint Lead
Arrangers and Book Managers and WELLS FARGO BANK, N.A., as Syndication Agent
(in such capacity, the “Syndication Agent”).  All capitalized terms used herein and defined
in Section 1 are used herein as therein defined.

W
I  T  N  E  S  S  E  T  H
:

WHEREAS, the Borrower has requested that the Lenders
extend credit in the form of Revolving Loans and Letters of Credit at any
time and from time to time prior to the Revolving Loan Maturity Date in an
aggregate principal amount at any time outstanding not in excess of $100.0
million;

WHEREAS, the proceeds of the Revolving Loans will be
used by the Borrower (i) to pay all fees, expenses and other costs
incurred in connection with the Transaction, (ii) to repay the existing
bridge credit agreement, dated as of January 25, 2006, among the Borrower,
the guarantors party thereto, Deutsche Bank AG Cayman Islands Branch, as
Lender, and Deutsche Bank AG New York Branch, as the Administrative Agent (the “Existing
Bridge Credit Agreement”) and (iii) for working capital and general
corporate purposes (including for Investments, stock repurchases and
acquisitions permitted hereunder); and

WHEREAS, subject to and upon the terms and conditions
set forth herein, the Lenders are willing to make available to the Borrower the
revolving loan facility provided for herein;

NOW, THEREFORE, IT IS AGREED:

SECTION 1.                 Definitions
and Accounting Terms.

1.01.        Defined
Terms.  As used in this Agreement,
the following terms shall have the following meanings (such meanings to be
equally applicable to both the singular and plural forms of the terms defined):

“Acquired Entity or Business” shall mean either
(x) the assets constituting a business, division or product line of any Person
not already a Subsidiary of the Borrower or (y) 100% of the Equity Interests of
any such Person, which Person shall, as a result of the acquisition of such
Equity Interests, become a Wholly-Owned Domestic Subsidiary of the Borrower (or
shall be merged with and into the Borrower or a Guarantor, with the Borrower or
such Guarantor being the surviving Person).

“Adjusted Consolidated Net Income” shall mean,
for any period, Consolidated Net Income for such period plus the sum of the
amount of all net non-cash charges (including depreciation, amortization,
deferred tax expense and non-cash interest expense) and net non-cash losses
which were included in arriving at Consolidated Net Income for such period, less
the

 

amount of all net non-cash gains and non-cash credits
which were included in arriving at Consolidated Net Income for such period.

“Adjusted Consolidated Working Capital” shall
mean, at any time, Consolidated Current Assets (but excluding therefrom all
cash and Cash Equivalents) less Consolidated Current Liabilities at such
time.

“Administrative Agent” shall mean Deutsche Bank
Trust Company Americas, in its capacity as Administrative Agent for the Lenders
hereunder and under the other Credit Documents, and shall include any successor
to the Administrative Agent appointed pursuant to Section 12.08.

“Affiliate” shall mean, with respect to any
Person, any other Person directly or indirectly controlling (including all
directors and officers of such Person), controlled by, or under direct or
indirect common control with, such Person. 
A Person shall be deemed to control another Person if such Person
possesses, directly or indirectly, the power (i) to vote 10% or more of the
securities having ordinary voting power for the election of directors (or
equivalent governing body) of such Person or (ii) to direct or cause the
direction of the management and policies of such other Person, whether through
the ownership of voting securities, by contract or otherwise; provided, however,
that neither the Administrative Agent nor any Lender (nor any Affiliate
thereof) shall be considered an Affiliate of the Borrower or any Subsidiary
thereof.

“Aggregate Consideration” shall mean, with
respect to any Permitted Acquisition, the sum (without duplication) of:

(i)            the aggregate amount of all cash
paid by the Borrower or any of its Subsidiaries in connection with such
Permitted Acquisition (including payments of fees and costs and expenses in
connection therewith),

(ii)           the aggregate principal amount of all
Indebtedness assumed, incurred, refinanced and/or issued in connection with
such Permitted Acquisition to the extent permitted by Section 10.04, and

(iii)          the Fair Market Value of all other
consideration payable in connection with such Permitted Acquisition (other than
Borrower Common Shares).

All contingent
purchase price, earn-out, non-compete and other similar obligations of the Borrower
and its Subsidiaries incurred in connection with any Permitted Acquisition
shall be taken in to account in determining the Aggregate Consideration in the
period in which such amounts are actually paid.

“Agreement” shall mean this Credit Agreement,
as modified, supplemented, amended, restated (including any amendment and
restatement hereof), extended or renewed from time to time.

“Applicable Margin” initially shall mean a
percentage per annum equal to (i) in the case of Revolving Loans
maintained as (A) Base Rate Loans, 0.75% and (B) Eurodollar Loans, 1.75%;
and (ii) in the case of Swingline Loans, 0.75%.  From and after each day of delivery

 2
 

 

of any certificate delivered in accordance with the
first sentence of the following paragraph indicating an entitlement to a
different margin for any Tranche of Loans than that described in the
immediately preceding sentence (each, a “Start Date”) to and including
the applicable End Date described below, the Applicable Margins for such
Tranches of Loans shall be those set forth below opposite the Total Leverage
Ratio indicated to have been achieved in any certificate delivered in
accordance with the following sentence:

	
  

  	
   

  	
  Total Leverage Ratio

  	
   

  	
  Revolving Loan

  Eurodollar Margin

  	
   

  	
  Revolving Loan and

  Swingline Loan

  Base Rate Margin

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level I

  	
   

  	
  Equal
  to or greater than 4 to 1.0

  	
   

  	
  2.00

  	
  %

  	
  1.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level II

  	
   

  	
  Equal
  to or greater than 3 to 1.0 but less than 4 to 1.0

  	
   

  	
  1.75

  	
  %

  	
  0.75

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level III

  	
   

  	
  Equal
  to or greater than 2.5 to 1.0 but less than 3 to 1.0

  	
   

  	
  1.50

  	
  %

  	
  0.50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level IV

  	
   

  	
  Equal
  to or greater than 2.0 to 1.0 but less than 2.5 to 1.0

  	
   

  	
  1.25

  	
  %

  	
  0.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level V

  	
   

  	
  Less than 2 to 1.0

  	
   

  	
  1.00

  	
  %

  	
  0.00

  	
  %

  

 

The Total Leverage Ratio used in a determination of
Applicable Margins shall be determined based on the delivery of a certificate
of the Borrower (each, a “Quarterly Pricing Certificate”) by an
Authorized Officer of the Borrower to the Administrative Agent (with a copy to
be sent by the Administrative Agent to each Lender), on the same date that
quarterly financial statements or annual financial statements, as the case may
be, are furnished pursuant to Section 9.01, which certificate shall set forth
the calculation of the Total Leverage Ratio as at the last day of the Test
Period ended immediately prior to the relevant Start Date and the Applicable
Margins which shall be thereafter applicable (until same are changed or cease
to apply in accordance with the following sentences).  The Applicable Margins so determined shall
apply, except as set forth in the succeeding sentence, from the relevant Start
Date to the earlier of (x) the date on which the next certificate is delivered
to the Administrative Agent and (y) the date which is (i) in the case of
quarterly financial statements, 45 days (or, in the case of any quarterly
accounting period ending January 31, 2007, April 30, 2007 or
July 31, 2007, 60 days) following the last day of the Test Period in which
the previous Start Date occurred, or (ii) in the case of annual financial
statements, 90 days (or, in the case of the fiscal year ended October 31, 2006,
105 days) following the last day of the Test Period in which the previous Start
Date occurred (any such earliest date specified in clause (x) or (y), the “End
Date”), at which time, if no certificate has been delivered to the
Administrative Agent indicating an entitlement to new Applicable Margins (and
thus commencing a new Start Date), the Applicable Margins shall be those set
forth in the first sentence of the definition determined as if Level I
were applicable (such Applicable Margins as so determined, the “Highest
Applicable Margins”). 
Notwithstanding anything to the contrary contained above in this
definition, the Applicable Margins shall be the Highest Applicable Margins at
all times during which there shall exist any Default or any Event of Default.

 3
 

 

In the event that any financial statement or
Compliance Certificate delivered pursuant to Section 9.01 is shown to be
inaccurate (regardless of whether this Agreement or the Revolving Loan
Commitments are in effect when such inaccuracy is discovered), and such inaccuracy,
if corrected, would have led to the application of a higher Applicable Margin
or Commitment Commission Percentage for any period (an “Applicable Period”)
than the Applicable Margin or Commitment Commission Percentage actually applied
for such Applicable Period, then (i) the Borrower shall immediately
deliver to the Administrative Agent a correct Compliance Certificate for such
Applicable Period, (ii) the Applicable Margin and the Commitment Percentage
shall be determined as if the correct Level were applicable for such Applicable
Period, and (iii) the Borrower shall immediately pay to the Administrative
Agent the accrued additional interest and Commitment Commission owing as a
result of such increased Applicable Margin and the Commitment Commission
Percentage for such Applicable Period, which payment shall be promptly applied
by the Administrative Agent in accordance with Section 2.07.  This paragraph shall not limit the rights of
the Administrative Agent and Lenders with respect to Section 2.07(b) and Section
11.

“Applicable Period” shall have the meaning
provided in the definition of Applicable Margin.

“Arrangers” shall mean Deutsche Bank Securities
Inc. and Wells Fargo Bank, N.A., in their capacities as Joint Lead Arrangers
and Book Managers, and any successors thereto.

“Asset Sale” shall mean any sale, transfer or
other disposition by the Borrower or any of its Subsidiaries to any Person
(including by way of redemption by such Person) other than to the Borrower or a
Wholly-Owned Subsidiary of the Borrower of any asset (including any capital
stock or other securities of, or Equity Interests in, another Person) but excluding
sales of assets pursuant to Sections 10.02(i), (v), (vi) (vii), (viii) and (x).

“Assignment and Assumption Agreement” shall
mean an Assignment and Assumption Agreement substantially in the form of Exhibit K
(appropriately completed).

“Authorized Officer” shall mean the president,
chief financial officer, chief executive officer, chief operating officer,
principal accounting officer or any treasurer of the Borrower.

“Available Amount” shall mean, at any time, the
sum at such time of (a) the aggregate cumulative Excess Cash Flow
beginning December 1, 2006 through the end of the most recent completed fiscal
quarter at such time, plus (b) the Net Cash Proceeds from any
capital contribution to, or any sale or issuance of Equity Interests by, the
Borrower received on or after the Effective Date, less, without
duplication, (c) all cash expenditures made by the Borrower and its Subsidiaries
on or after December 1, 2006 to (i) pay Dividends or purchase Equity
Interests pursuant to Section 10.03(vi), (ii) make Investments pursuant to
Section 10.05(xiii), and (iii) Permitted Acquisitions pursuant to the definition
thereof and Section 9.13 (but only to the extent such Permitted Acquisitions
are made with the Available Amount component of the Permitted Acquisition Basket
Amount).

 4
 

 

“Base Rate” shall mean, at any time, the higher
of (i) the Prime Lending Rate at such time and (ii) 1⁄2 of 1% in excess
of the overnight Federal Funds Rate at such time.

“Base Rate Loan” shall mean each Loan bearing
interest determined by reference to the Base Rate designated or deemed
designated as such by the Borrower at the time of the incurrence thereof or
conversion thereto.

“Borrower Common Shares” shall mean the
authorized capital stock of the Borrower ($0.01 par value per share) on the
Borrowing Date, together with any subsequently authorized common shares of the
Borrower.

“Borrowing” shall mean the borrowing of one
Type of Loan on a given date (or resulting from a conversion or conversions on
such date) having in the case of Eurodollar Loans the same Interest Period, provided
that Base Rate Loans incurred pursuant to Section 2.09(b) shall be considered
part of the related Borrowing of Eurodollar Loans.

“Borrowing Date” shall mean the date occurring
on or after the Effective Date on which an incurrence of Loans occurs.

“Business Day” shall mean (i) for all purposes
other than as covered by clause (ii) below, any day except Saturday, Sunday and
any day which shall be in New York, New York, a legal holiday or a
day on which banking institutions are authorized or required by law or other
government action 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) above and which
is also a day for trading by and between banks in U.S. dollar deposits in the
interbank Eurodollar market.

“Calculation Period” shall mean, with respect
to any Permitted Acquisition or any other event expressly required to be
calculated on a Pro Forma Basis pursuant to the terms of this Agreement, the
Test Period most recently ended prior to the date of such Permitted Acquisition.

“Capital Expenditures” shall mean, with respect
to any Person, all expenditures by such Person which should be capitalized in
accordance with GAAP and, without duplication, the amount of Capitalized Lease
Obligations incurred by such Person.

“Capitalized Lease Obligations” shall mean,
with respect to any Person, all rental obligations of such Person which, under
GAAP, are or will be required to be capitalized on the books of such Person, in
each case taken at the amount thereof accounted for as indebtedness in
accordance with such principles.

“Cash Equivalents” shall mean, as to any
Person, (i) securities issued or directly and fully guaranteed or insured by
the United States or any agency or instrumentality thereof (provided that
the full faith and credit of the United States is pledged in support thereof)
having maturities of not more than twenty-four months from the date of
acquisition, (ii) marketable direct obligations, including without limitation
auction rate securities, issued by any state of the United States or any
political subdivision of any such state or any public instrumentality thereof
maturing within twenty-four months from the date of acquisition thereof and, at
the time of acquisition, having one of the two highest ratings obtainable from
either Standard & Poor’s Ratings

 5
 

 

Services, a division of McGraw-Hill, Inc. or Moody’s
Investors Service, Inc., (iii) Dollar-denominated time deposits, certificates
of deposit and bankers acceptances of any Lender or any commercial bank having,
or which is the principal banking subsidiary of a bank holding company having,
a long-term unsecured debt rating of at least “A” or the equivalent thereof
from Standard & Poor’s Ratings Services, a division of McGraw-Hill, Inc. or
“A2” or the equivalent thereof from Moody’s Investors Service, Inc. with
maturities of not more than twelve months from the date of acquisition by such
Person, (iv) repurchase obligations with a term of not more than seven days for
underlying securities of the types described in clause (i) above entered into
with any bank meeting the qualifications specified in clause (iii) above, (v)
commercial paper issued by any Person incorporated in the United States rated
at least A-1 or the equivalent thereof by Standard & Poor’s Ratings
Services, a division of McGraw-Hill, Inc. or at least P-1 or the equivalent
thereof by Moody’s Investors Service, Inc. and in each case maturing not more
than nine months after the date of acquisition by such Person, (vi) investments
in money market funds substantially all of whose assets are comprised of
securities of the types described in clauses (i) through (v) above, and (vii)
in the case of any Foreign Subsidiary only, direct obligations of the sovereign
nation (or any agency thereof) in which such Foreign Subsidiary is organized
and is conducting business or in obligations fully and unconditionally guaranteed
by such sovereign nation (or any agency thereof).

“Change in Tax Law” means any changes that are
effective after the Effective Date in any applicable law, treaty, governmental
rule, regulation, guideline or order, or in the interpretation thereof,
relating to the deduction or withholding of such Indemnifiable Taxes.

“Change of Control” shall mean any “person” or “group”
(as such terms are used in Sections 13(d) and 14(d) of the Exchange Act) is or
shall become the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5
under the Exchange Act), directly or indirectly, of 35% or more on a fully
diluted basis of the voting interests in the Borrower’s capital stock or (ii)
the Board of Directors of the Borrower shall cease to consist of a majority of
Continuing Directors.

“Code” shall mean the Internal Revenue Code of
1986, as amended from time to time, and the regulations promulgated and rulings
issued thereunder.

“Collateral” shall mean all property (whether
real or personal) with respect to which any security interests have been
granted (or purported to be granted) pursuant to any Security Document,
including all Security Agreement Collateral, all Mortgaged Properties and all
cash and Cash Equivalents delivered as collateral pursuant to any Credit
Document.

“Collateral Agent” shall mean the
Administrative Agent acting as collateral agent for the Secured Parties pursuant
to the Security Documents.

“Commitment Commission Percentage” initially
shall mean 0.300% per annum.  From and
after each Start Date to and including the applicable End Date (each as defined
in the definition of “Applicable Margin”), the Commitment Commission Percentage
shall be as set forth below opposite the Total Leverage Ratio indicated to have
been achieved in any certificate delivered in accordance with the same
requirements applied in determining the Applicable Margin described in the definition
of “Applicable Margin”:

 6
 

 

 

	
   

  	
   

  	
  Total Leverage Ratio

  	
   

  	
  Commitment

  Commission

  Percentage

  	
   

  
	
  Level I

  	
   

  	
  Equal
  to or greater than 4 to 1.0

  	
   

  	
  0.375

  	
  %

  
	
  Level II

  	
   

  	
  Equal
  to or greater than 3 to 1.0 but less than 4 to 1.0

  	
   

  	
  0.30

  	
  %

  
	
  Level III

  	
   

  	
  Equal
  to or greater than 2.5 to 1.0 but less than 3 to 1.0

  	
   

  	
  0.25

  	
  %

  
	
  Level IV

  	
   

  	
  Equal
  to or greater than 2.0 to 1.0 but less than 2.5 to 1.0

  	
   

  	
  0.20

  	
  %

  
	
  Level V

  	
   

  	
  Less than 2 to 1.0

  	
   

  	
  0.15

  	
  %

  

 

“Company” shall mean any corporation, limited
liability company, partnership or other business entity (or the adjectival form
thereof, where appropriate).

“Consolidated Current Assets” shall mean, at
any time, the consolidated current assets of the Borrower and its Subsidiaries
at such time.

“Consolidated Current Liabilities” shall mean,
at any time, the consolidated current liabilities of the Borrower and its
Subsidiaries at such time, but excluding the current portion of any
Indebtedness under this Agreement and the current portion of any other
long-term Indebtedness which would otherwise be included therein.

“Consolidated EBITDA” shall mean, for any
period, Consolidated Net Income for such period (without giving effect to (x)
any extraordinary gains, losses or expenses and unusual or non-recurring gains,
losses or expenses and (y) any gains, losses or expenses from sales of assets,
other than inventory sold in the ordinary course of business), adjusted by
adding thereto (in each case to the extent deducted in determining Consolidated
Net Income for such period), without duplication, the amount of (i) total
interest expense (inclusive of amortization of deferred financing fees and
other original issue discount and banking fees, charges and commissions (e.g.,
letter of credit fees and commitment fees)) of the Borrower and its
Subsidiaries determined on a consolidated basis for such period, (ii) provision
for Federal, state, local and foreign taxes based on income and foreign
withholding taxes, value-added taxes, franchise taxes and state single business
unitary and similar taxes imposed in lieu of income taxes, in each case for the
Borrower and its Subsidiaries determined on a consolidated basis for such
period, (iii) all depreciation and amortization expense of the Borrower
and its Subsidiaries determined on a consolidated basis for such period,
(iv) in the case of any period including the fiscal quarter of the
Borrower ended January 31, 2007, the amount of all fees and expenses
incurred in connection with the Transaction during such fiscal quarter,
(v) all charges or expenses relating to financing or acquisition
transactions (other than the Transaction and whether or not completed)
occurring outside the ordinary course of business (including non-capitalized
acquisition costs and any write-off of deferred financing costs), and
(vi) all non-cash charges or expenses (excluding any non-cash charge that
results in an accrual of a reserve for cash charges in any future period),
including charges associated with the marking to market of derivatives and
other investments.  To the extent any
amounts are excluded from Consolidated Net Income by virtue of the proviso to
the definition thereof, any addbacks to Consolidated Net Income in determining
Consolidated EBITDA as provided above shall be limited (or denied) in a fashion
consistent with the proviso to the definition of “Consolidated Net Income.”

 7
 

 

“Consolidated Indebtedness” shall mean, at any
time, the sum of (without duplication) (i) all Indebtedness of the
Borrower and its Subsidiaries (on a consolidated basis) as would be required to
be reflected as debt or Capitalized Lease Obligations on the liability side of
a consolidated balance sheet of the Borrower and its Subsidiaries in accordance
with GAAP, (ii) all Indebtedness of the Borrower and its Subsidiaries of
the type described in clauses (ii), (vi) and (vii) of the definition of Indebtedness
and (iii) all Contingent Obligations of the Borrower and its Subsidiaries
in respect of Indebtedness of any third Person of the type referred to in preceding
clauses (i) and (ii); provided that (x) the aggregate amount available
to be drawn (i.e., unfunded amounts) under all letters of credit,
bankers’ acceptances, bank guaranties, surety bonds and similar obligations
issued for the account of the Borrower or any of its Subsidiaries (but excluding,
for avoidance of doubt, all unpaid drawings or other matured monetary
obligations owing in respect of such letters of credit, bankers’ acceptances,
bank guaranties, surety bonds and similar obligations) shall not be included in
any determination of “Consolidated Indebtedness” and (y) the amount of Indebtedness
in respect of the Interest Rate Protection Agreements and Other Hedging
Agreements shall be at any time the unrealized net loss position, if any, of
the Borrower and/or its Subsidiaries thereunder on a marked-to-market basis
determined no more than one month prior to such time.

“Consolidated Interest Expense” shall mean, for
any period, (i) the total consolidated interest expense of the Borrower and its
Subsidiaries for such period determined in accordance with GAAP (calculated
without regard to any limitations on payment thereof), adjusted to exclude (to
the extent same would otherwise be included in the calculation above in this
clause (i)) the amortization of any deferred financing costs for such period
and any interest expense actually “paid in kind” or accreted during such
period, plus (ii) without duplication, (x) that portion of
Capitalized Lease Obligations of the Borrower and its Subsidiaries on a
consolidated basis representing the interest factor for such period and (y) the
“deemed interest expense” (i.e., the interest expense which would have
been applicable if the respective obligations were structured as on-balance
sheet financing arrangements) with respect to all Indebtedness of the Borrower
and its Subsidiaries of the type described in clause (vii) of the definition of
Indebtedness contained herein (to the extent same does not arise from a
financing arrangement constituting an operating lease) for such period.

“Consolidated Net Income” shall mean, for any
period, the net income (or loss) of the Borrower and its Subsidiaries
determined on a consolidated basis for such period (taken as a single
accounting period) in accordance with GAAP, provided that the following
items shall be excluded in computing Consolidated Net Income (without duplication):  (i) the net income (or loss) of any Person in
which a Person or Persons other than the Borrower and its Wholly-Owned
Subsidiaries has an Equity Interest or Equity Interests to the extent of such
Equity Interests held by Persons other than the Borrower and its Wholly-Owned
Subsidiaries in such Person, (ii) except for determinations expressly required
to be made on a Pro Forma Basis, the net income (or loss) of any Person accrued
prior to the date it becomes a Subsidiary or all or substantially all of the
property or assets of such Person are acquired by a Subsidiary and (iii) the
net income of any Subsidiary to the extent that the declaration or payment of
dividends or similar distributions by such Subsidiary of such net income is not
at the time permitted by the operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or governmental
regulation applicable to such Subsidiary.

 8
 

 

“Contingent Obligation” shall mean, as to any
Person, any obligation of such Person as a result of such Person being a
general partner of any other Person, unless the underlying obligation is
expressly made non-recourse as to such general partner, and any obligation of
such Person guaranteeing or intended to guarantee any Indebtedness, leases,
dividends or other obligations (“primary obligations”) of any other
Person (the “primary obligor”) in any manner, whether directly or
indirectly, including any obligation of such 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 (x) for the
purchase or payment of any such primary obligation or (y) to maintain working
capital or equity capital of the primary obligor or otherwise to maintain the
net worth or solvency of the primary obligor, (iii) to purchase property,
securities or services primarily for the purpose of assuring the owner of any
such primary obligation of the ability of the primary obligor to make payment of
such primary obligation or (iv) otherwise to assure or hold harmless the
holder of such primary obligation against loss in respect thereof; provided,
however, that the term Contingent Obligation shall not include
endorsements of instruments for deposit or collection in the ordinary course of
business.  The amount of any Contingent
Obligation shall be deemed to be an amount equal to the stated or determinable
amount of the primary obligation in respect of which such Contingent Obligation
is made or, if not stated or determinable, the maximum reasonably anticipated
liability in respect thereof (assuming such Person is required to perform
thereunder) as determined by such Person in good faith.

“Continuing Directors” shall mean the directors
of the Borrower on the Effective Date and each other director if such director’s
nomination for election to the Board of Directors of the Borrower is recommended
by a majority of the then Continuing Directors.

“Credit Documents” shall mean this Agreement,
the Guaranty, the Security Agreement and each other Security Document, and
after the execution and delivery thereof pursuant to the terms of this
Agreement, each Note.

“Credit Event” shall mean the making of any
Loan or the issuance of any Letter of Credit.

“Credit Party” shall mean the Borrower and each
Guarantor.

“Default” shall mean any event or condition
which with notice or lapse of time, or both, would constitute an Event of
Default.

“Defaulting Lender” shall mean any Lender with
respect to which a Lender Default is in effect.

“Dividend” shall mean, with respect to any
Person, that such Person has declared or paid a dividend, distribution or
returned any equity capital to its stockholders, partners or members or
authorized or made any other distribution, payment or delivery of property
(other than common Equity Interests of such Person) or cash to its
stockholders, partners or members in their capacity as such, or redeemed,
retired, purchased or otherwise acquired, directly or indirectly, for a consideration
any shares of any class of its capital stock or any other Equity Interests
outstanding on or after the Effective Date (or any options or warrants issued
by such Person with respect to its capital stock or other Equity Interests) or
shall have permitted any of its Subsidiaries

 9
 

 

to purchase or otherwise acquire for a consideration
any shares of any class of the capital stock or any other Equity Interests of
such Person outstanding on or after the Effective Date (or any options or
warrants issued by such Person with respect to its capital stock or other
Equity Interests).  Without limiting the
foregoing, “Dividends” with respect to any Person shall also include all
payments made or required to be made by such Person with respect to any stock
appreciation rights, plans, equity incentive or achievement plans or any
similar plans or setting aside of any funds for the foregoing purposes.

“Dollars” and the sign “$” shall each
mean freely transferable lawful money of the United States.

“Domestic Subsidiary” of any Person shall mean
any Subsidiary of such Person incorporated or organized in the United States or
any State or territory thereof or the District of Columbia.

“Eligible Transferee” shall mean and include a
commercial bank, an insurance company, a finance company, a financial
institution, any fund that invests in loans or any other “accredited investor”
(as defined in Regulation D of the Securities Act), but in any event excluding
the Borrower and its Subsidiaries.

“Employee Benefit Plan” shall mean an employee
benefit plan (as defined in Section 3(3) of ERISA), other than a Foreign Plan,
that is maintained or contributed to by the Borrower or any Subsidiary.

“End Date” shall have the meaning provided in
the definition of Applicable Margin.

“Environmental Claims” shall mean any and all
administrative, regulatory or judicial actions, suits, written demands, demand
letters, written claims, liens, notices of noncompliance or violation or
proceedings relating in any way to any Environmental Law (hereafter, “Claims”),
including (a) any and all Claims by governmental or regulatory authorities for
enforcement, cleanup, removal, response, remedial or other actions or damages
pursuant to any applicable Environmental Law, and (b) any and all Claims
by any third party seeking damages, contribution, indemnification, cost
recovery, compensation or injunctive relief in connection with alleged injury
or threat of injury to health, safety or the environment due to the presence of
Hazardous Materials.

“Environmental Law” means any applicable federal,
state or local law or regulation and the common law relating to the
preservation or protection of the environment, or to occupational health or
safety matters.

“Equity Interests” of any Person shall mean any
and all shares, interests, rights to purchase, warrants, options, participation
or other equivalents of or interest in (however designated) equity of such
Person, including any preferred stock, any limited or general partnership
interest and any limited liability company membership interest.

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

 10

 

“ERISA Entity” shall mean any member of an
ERISA Group.

“ERISA Event” shall mean (a) any “reportable
event,” as defined in Section 4043 of ERISA or the regulations issued
thereunder with respect to a Pension Plan (other than an event for which the
30-day notice period is waived by regulation); (b) the existence with
respect to any Pension Plan of an “accumulated funding deficiency” (as defined
in Section 412 of the Code or Section 302 of ERISA), whether or not
waived, (c) the failure to make by its due date a required installment under
Section 412(m) of the Code with respect to any Pension Plan or the failure
to make any required contribution to a Multiemployer Plan; (d) the filing
pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of
an application for a waiver of the minimum funding standard with respect to any
Pension Plan; (e) the incurrence by any ERISA Entity of any liability
under Title IV of ERISA with respect to the termination of any Pension
Plan; (f) the receipt by any ERISA Entity from the PBGC or a plan
administrator of any notice relating to an intention to terminate any Pension
Plan or to appoint a trustee to administer any Pension Plan, or the occurrence
of any event or condition which could reasonably be expected to constitute grounds
under ERISA for the termination of or the appointment of a trustee to
administer any Pension Plan; (g) the incurrence by any ERISA Entity of any
liability with respect to the withdrawal or partial withdrawal from any Pension
Plan or Multiemployer Plan; (h) the receipt by an ERISA Entity of any
notice concerning the imposition of Withdrawal Liability or a determination
that a Multiemployer Plan is, or is expected to be, insolvent or in
reorganization, within the meaning of Title IV of ERISA; (i) the “substantial
cessation of operations” within the meaning of Section 4062(e) of ERISA
with respect to a Pension Plan; (j) the making of any amendment to any
Pension Plan which could result in the imposition of a lien or the posting of a
bond or other security; or (j) the occurrence of a nonexempt prohibited
transaction (within the meaning of Section 4975 of the Code or Section 406
of ERISA) which could reasonably result in material liability to the Borrower
or any of the Subsidiaries.

“ERISA Group” shall mean the Borrower, any
Subsidiary and all members of a controlled group of corporations and all trades
or businesses (whether or not incorporated) under common control which,
together with the Borrower or any Subsidiary, are treated as a single employer
under Section 414 of the Code.

“Eurodollar Loan” shall mean each Loan (other
than a Swingline Loan) bearing interest determined by reference to the
Eurodollar Rate designated as such by the Borrower at the time of the
incurrence thereof or conversion thereto.

“Eurodollar Rate” shall mean (a) the offered
quotation to first-class banks in the New York interbank Eurodollar market by
the Administrative Agent for Dollar deposits of amounts in immediately
available funds comparable to the outstanding principal amount of the
Eurodollar Loan of the Administrative Agent (in its capacity as a Lender) with
maturities comparable to the Interest Period applicable to such Eurodollar Loan
commencing two Business Days thereafter as of 10:00 A.M. (New York time) on the
applicable Interest Determination Date, divided (and rounded upward to the
nearest 1/16 of 1%) by (b) a percentage equal to 100% minus the then stated
maximum rate of all reserve requirements (including any marginal, emergency,
supplemental, special or other reserves required by applicable law) applicable
to any member bank of the Federal Reserve System in respect of Eurocurrency
funding or liabilities as defined in Regulation D (or any successor category of
liabilities under Regulation D).

 11
 

 

“Excess Cash Flow” shall mean, for any period,
the remainder of (a) the sum of, without duplication, (i) Adjusted Consolidated
Net Income for such period and (ii) the decrease, if any, in Adjusted
Consolidated Working Capital from the first day to the last day of such period,
minus (b) the sum of, without duplication, (i) the aggregate amount of
all Capital Expenditures made by the Borrower and its Subsidiaries during such
period (other than Capital Expenditures to the extent financed with equity
proceeds, Equity Interests, asset sale proceeds, insurance proceeds or
Indebtedness (other than Revolving Loans and Swingline Loans)), (ii) the aggregate
amount of permanent principal payments of Indebtedness for borrowed money of
the Borrower and its Subsidiaries and the permanent repayment of the principal
component of Capitalized Lease Obligations of the Borrower and its Subsidiaries
during such period (other than (1) repayments made with the proceeds of asset
sales, equity issuances, insurance or Indebtedness and (2) payments of Loans
and/or other Obligations, provided that repayments of Loans shall be deducted
in determining Excess Cash Flow to the extent such repayments were made as a
voluntary prepayment pursuant to Section 5.01 with internally generated funds
(and only to the extent accompanied by a voluntary reduction to the Total
Revolving Loan Commitment)), (iii) the increase, if any, in Adjusted
Consolidated Working Capital from the first day to the last day of such period
and (iv) the aggregate amount of all cash payments made in respect of all
Permitted Acquisitions consummated by the Borrower and its Subsidiaries during
such period (other than (x) any such payments to the extent financed with
equity proceeds, asset sale proceeds, insurance proceeds or Indebtedness or
(y) and any such Permitted Acquisitions made pursuant to the Available
Amount component of the Permitted Acquisition Basket Amount).

“Fair Market Value” shall mean, with respect to
any asset, the price at which a willing buyer, not an Affiliate of the seller,
and a willing seller who does not have to sell, would agree to purchase and
sell such asset, as determined in good faith by the board of directors or other
governing body or, pursuant to a specific delegation of authority by such board
of directors or governing body, a designated senior executive officer, of the
Borrower, or the Subsidiary of the Borrower selling such asset.

“Federal Funds Rate” shall mean, for any
period, a fluctuating interest rate equal for each day during such period to
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 for such day (or, if such day is not a Business Day, for the next
preceding Business Day) by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day which is a Business Day, the average of
the quotations for such day on such transactions received by the Administrative
Agent from three Federal Funds brokers of recognized standing selected by the
Administrative Agent.

“Fees” shall mean all amounts payable pursuant
to or referred to in Section 4.01.

“Foreign Lender” means a Lender that is not a
United States person as defined in Section 7701(a)(30) of the Code.

“Foreign Plan” shall mean any employee benefit
plan, program, policy, arrangement or agreement maintained or contributed to
by, or entered into with, the Borrower or any Subsidiary with respect to
employees employed outside the United States.

 12
 

 

“Foreign Subsidiary” of any Person shall mean
any Subsidiary of such Person that is not a Domestic Subsidiary.

“GAAP” shall mean generally accepted accounting
principles in the United States as in effect from time to time; provided
that determinations in accordance with GAAP for purposes of the Applicable
Margin and Sections 9.13 and 10, including defined terms as used therein,
are subject (to the extent provided therein) to Section 13.07(a).

“Guarantor” shall mean (i) each Wholly-Owned
Domestic Subsidiary of the Borrower that is not an Immaterial Subsidiary on the
Effective Date and (ii) each Wholly-Owned Domestic Subsidiary that is not an
Immaterial Subsidiary of the Borrower established, created or acquired after
the Effective Date, in each case unless and until such time as such Subsidiary
is released from all of its obligations under the Guaranty in accordance with
the terms and provisions thereof.

“Hazardous Material” means those substances
that are listed, regulated or defined as “hazardous” or “toxic” under Environmental
Law.

“Highest Applicable Margin” shall have the
meaning provided in the definition of Applicable Margin.

“Immaterial Subsidiary” shall mean any
Subsidiary with assets valued at less than $1,000,000.

“Incremental Commitment” shall mean, for any
Lender, any commitment by such Lender to increase its Revolving Loan Commitment
(in the case of an existing Lender) or become party to this Agreement and
provide a Revolving Loan Commitment, in each case, as set forth in the
respective Incremental Commitment Agreement delivered pursuant to Section
2.13.  On each date upon which an
Incremental Commitment of any Lender becomes effective, such Incremental
Commitment of such Lender shall be added to (and thereafter become a part of)
the Revolving Loan Commitment of such Lender for all purposes of this Agreement
as contemplated by Section 2.13. 
Incremental Commitments shall constitute Revolving Loan Commitments and
be identical in all respects to the Revolving Loan Commitments immediately
prior to the applicable Incremental Commitment Date.

“Incremental Commitment Agreement” shall mean
each Incremental Commitment Agreement in the form of Exhibit M
(appropriately completed) executed and delivered in accordance with Section
2.13.

“Incremental Commitment Request Requirements”
shall mean, with respect to any request for an Incremental Commitment made
pursuant to Section 2.13, the satisfaction of each of the following conditions
on the date of such request:

(1)           no
Default or Event of Default then exists or would result therefrom (for purposes
of such determination, assuming the relevant Loans in an aggregate principal
amount equal to the full amount of Incremental Commitments then requested had
been incurred, and the proposed Permitted Acquisition (if any) to be financed
with the proceeds of such Loans had been consummated, on such date), and all of
the representations

 13
 

 

and warranties contained
herein and in the other Credit Documents are true and correct in all material
respects on such date (unless stated to relate to a specific earlier date, in
which case such representations and warranties shall be true and correct in all
material respects as of such earlier date); and

(2)           the
Credit Parties shall be in compliance with the covenants contained in Section
10.08 and 10.09 (determined as if a Test Period is then in existence),
calculating the covenants therein based on the four fiscal quarter period ended
with the last fiscal quarter for which financial statements have been delivered
pursuant to Section 9.01(a) on or prior to the date of the request for Incremental
Commitments, on a Pro Forma Basis, as if the relevant Loans to be made pursuant
to such Incremental Commitments (assuming the full utilization thereof) had
been incurred, and the proposed Permitted Acquisition (if any) to be financed
with the proceeds of such Loans (as well as other Permitted Acquisition
theretofore consummated after the first day of such four fiscal quarter period)
had occurred, on the first day of such four fiscal quarter period.

“Incremental Commitment Requirements” shall
mean, with respect to any provision of an Incremental Commitment on an
Incremental Commitment Date, the satisfaction of each of the following
conditions on or prior to such Incremental Commitment Date:

(1)           no
Default or Event of Default then exists or would result therefrom (for purposes
of such determination, assuming the relevant Loans in an aggregate principal
amount equal to the full amount of Incremental Commitments then provided had
been incurred, and the proposed Permitted Acquisition (if any) to be financed
with the proceeds of such Loans had been consummated, on such Incremental
Commitment Date), and all of the representations and warranties contained
herein and in the other Credit Documents are true and correct in all material
respects on such date (unless stated to relate to a specific earlier date, in
which case such representations and warranties shall be true and correct in all
material respects as of such earlier date);

(2)           the
Borrower and its Subsidiaries shall have delivered such amendments, modifications
and/or supplements to the Security Documents as are necessary, or in the
reasonable opinion of the Administrative Agent desirable, to insure that the
additional obligations are secured by, and entitled to the benefits of, the
Security Documents;

(3)           calculations
are made by the Borrower demonstrating compliance with the covenants contained
in Sections 10.08 and 10.09 (determined as if a Test Period is then in existence),
calculating the covenants therein based on the four fiscal quarter period ended
with the last fiscal quarter for which financial statements have been delivered
pursuant to Section 9.01(a) on or prior to the date of the request for
Incremental Commitments on or prior to such Incremental Commitment Date, on a
Pro Forma Basis, as if the relevant Loans to be made pursuant to such
Incremental Commitments (assuming the full utilization thereof) had been
incurred, and the proposed Permitted Acquisition (if any) to be financed with
the proceeds of such Loans (as well as other Permitted Acquisition theretofore
consummated after the first day of such four fiscal quarter period) had
occurred, on the first day of such four fiscal quarter period;

 14
 

 

(4)           the
delivery by the Borrower to the Administrative Agent of an officer’s
certificate executed by the chief financial officer of the Borrower and
certifying as to compliance with preceding clauses (2) and (3) and containing
the calculations (in reasonable detail) required by preceding clause (3);

(5)           the
delivery by the Borrower to the Administrative Agent of an acknowledgement in
form and substance reasonably satisfactory to the Administrative Agent and
executed by each Guarantor, acknowledging that such Incremental Commitment and
all Loans subsequently incurred pursuant to such Incremental Commitment shall
constitute (and be included in the definition of) “Obligations”;

(6)           the
delivery by the Borrower to the Administrative Agent of an opinion or opinions,
in form and substance reasonably satisfactory to the Administrative Agent, from
counsel to the Credit Parties reasonably satisfactory to the Administrative
Agent and dated such date, covering such of the matters set forth in the
opinions of counsel delivered to the Administrative Agent on the Initial
Borrowing Date pursuant to Section 6.02 as may be reasonably requested by the
Administrative Agent, and such other matters incident to the transactions
contemplated thereby as the Administrative Agent may reasonably request;

(7)           the
delivery by each Credit Party to the Administrative Agent of such other officers’
certificates, board of director (or equivalent governing body) resolutions and
evidence of good standing (to the extent available under applicable law) as the
Administrative Agent shall reasonably request; and

(8)           the
completion by each Credit Party of such other actions as the Administrative
Agent may reasonably request in connection with such Incremental Loan Commitment.

“Indebtedness” shall mean, as to any Person,
without duplication, (i) all indebtedness of such Person for borrowed money or
for the deferred purchase price of property or services, (ii) the maximum
amount available to be drawn or paid under all then outstanding letters of
credit, bankers’ acceptances, bank guaranties, surety and appeal bonds and
similar obligations issued for the account of such Person and all unpaid
drawings and unreimbursed payments in respect of such letters of credit,
bankers’ acceptances, bank guaranties, surety and appeal bonds and similar obligations,
(iii) all indebtedness of the types described in clause (i), (ii), (iv), (v),
(vi) or (vii) of this definition secured by any Lien on any property owned by
such Person, whether or not such indebtedness has been assumed by such Person (provided
that, if the Person has not assumed or otherwise become liable in respect of
such indebtedness, such indebtedness shall be deemed to be in an amount equal
to the lesser of the principal amount of the indebtedness so secured and the
Fair Market Value of the property to which such Lien relates), (iv) all
Capitalized Lease Obligations of such Person, (v) all Contingent Obligations of
such Person, (vi) the net amount payable upon termination under any Interest
Rate Protection Agreement, any Other Hedging Agreement or under any similar
type of agreement and (vii) all Off-Balance Sheet Liabilities of such
Person.  The Indebtedness of any Person
shall include the Indebtedness of any other entity (including any partnership
in which such Person is a general partner) to the extent such Person is
directly liable therefor as a result of such Person’s ownership interest in or

 15
 

 

other relationship with such entity, except to the
extent the terms of such Indebtedness provide that such Person is not liable
therefor.  Notwithstanding the foregoing,
Indebtedness shall not include trade payables, accrued expenses and deferred
tax and other credits incurred by any Person in accordance with customary
practices and in the ordinary course of business of such Person.

“Initial Borrowing Date” shall mean the date
occurring on or after the Effective Date on which the initial Borrowing of
Loans occurs.

“Indemnifiable Taxes” means all Taxes other
than (i) net income taxes, franchise taxes imposed in lieu of net income taxes
or similar taxes imposed on or measured by net income that are imposed on or
levied on the Administrative Agent or a Lender as a result of a present or
former connection between the Administrative Agent or the Lender and the
jurisdiction of the governmental authority imposing such tax or any political
subdivision or taxing authority thereof or therein (other than any such
connection arising solely from such Administrative Agent or such Lender having
executed, delivered or performed its obligations or received a payment under,
or enforced, this Agreement); and (ii) except as provided in Section 13.04(b),
any withholding tax that is imposed on amounts payable to a Foreign Lender at
the time such Foreign Lender becomes a party hereto (or designates a new
lending office) or is attributable to a Lender’s failure or inability to comply
with Section 5.04(b) other than as a result of a Change in Tax Law after the
Lender became a party hereto.

“Intercompany
Debt” shall mean any Indebtedness, payables or other obligations, whether
now existing or hereafter incurred, owed by the Borrower or any Subsidiary of the
Borrower to the
Borrower or any other
Subsidiary of the Borrower.

“Intercompany Note” shall mean a promissory
note evidencing Intercompany Loans, duly executed and delivered substantially
in the form of Exhibit L (or such other form as shall be satisfactory
to the Administrative Agent in its sole discretion) with blanks completed in
conformity herewith.

“Interest Determination Date” shall mean, with
respect to any Eurodollar Loan, the second Business Day prior to the
commencement of any Interest Period relating to such Eurodollar Loan.

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

“Interest Rate Protection Agreement” shall mean
any interest rate swap agreement, interest rate cap agreement, interest collar
agreement, interest rate hedging agreement or other similar agreement or
arrangement.

“IRS” means the U.S. Internal Revenue Service.

“Issuing Lender” shall mean each of Deutsche
Bank Trust Company Americas (except as otherwise provided in Section 12.08) and
any other Lender reasonably acceptable to the Administrative Agent which agrees
to issue Letters of Credit hereunder. 
Any Issuing Lender may, in its discretion, arrange for one or more
Letters of Credit to be issued by one or more

 16
 

 

Affiliates of such Issuing Lender (and such Affiliate
shall be deemed to be an “Issuing Lender” for all purposes of the Credit
Documents).

“L/C Supportable Obligations” shall mean (i)
obligations of the Borrower or any of its Subsidiaries with respect to workers
compensation, surety bonds and other similar statutory obligations and (ii)
such other obligations of the Borrower or any of its Subsidiaries as are reasonably
acceptable to the respective Issuing Lender and otherwise permitted to exist
pursuant to the terms of this Agreement.

“Lender” shall mean each financial institution
listed on Schedule I, as well as any Person that becomes a “Lender” hereunder
pursuant to Section 13.04(b).

“Lender Default” shall mean (i) the wrongful
refusal (which has not been retracted) or the failure of a Lender to make
available its portion of any Borrowing (including any Mandatory Borrowing) or
to fund its portion of any unreimbursed payment under Section 3.04(c) or
(ii) a Lender having notified in writing the Borrower and/or the Administrative
Agent that such Lender does not intend to comply with its obligations under Section
2.01 or 3.

“Letter of Credit Outstandings” shall mean, at
any time, the sum of (i) the Stated Amount of all outstanding Letters of Credit
at such time and (ii) the aggregate amount of all Unpaid Drawings in respect of
all Letters of Credit at such time.

“Lien” shall mean any mortgage, pledge,
hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or
other), preference, priority or other security agreement of any kind or nature
whatsoever (including any conditional sale or other title retention agreement,
any financing or similar statement or notice filed under the UCC or any other
similar recording or notice statute, and any lease having substantially the
same effect as any of the foregoing).

“Liquidity Test” shall mean, at any time, that
both (a) the Borrower and the Guarantors have not less than $5.0 million
of unrestricted cash, Cash Equivalents and borrowing availability under this
Agreement and (b) no Default or Event of Default shall have occurred and
be continuing at such time.

“Margin Stock” shall have the meaning provided
in Regulation U of the Board of Governors of the Federal Reserve System.

“Material Adverse Effect” shall mean (i) a
material adverse effect on the business, operations, property or condition
(financial or otherwise) of the Borrower and its Subsidiaries taken as a whole
or (ii) a material adverse effect on the rights or remedies of the Lenders, the
Administrative Agent or the Collateral Agent hereunder or under any other
Credit Document.

“Maturity Date” shall mean, with respect to the
relevant Tranche of Loans, the Revolving Loan Maturity Date or the Swingline
Expiry Date, as the case may be.

“Maximum Swingline Amount” shall mean $10.0
million.

 17
 

 

“Minimum Borrowing Amount” shall mean
(i) for Revolving Loans, $1.0 million, and (ii) for Swingline Loans,
$250,000.

“Mortgage” shall mean a mortgage, deed of
trust, deed to secure debt or similar security instrument.

“Mortgaged Property” shall mean each Real
Property, if any, which shall be subject to a Mortgage delivered after the
Effective Date pursuant to Section 9.11.

“Multiemployer Plan” shall mean a multiemployer
plan within the meaning of Section 4001(a)(3) of ERISA (i) to which any ERISA
Entity is then making or has an obligation to make contributions (ii) to which
any ERISA Entity has within the preceding six plan years made contributions,
including any Person which ceased to be an ERISA Entity during such six year
period, or (iii) with respect to which the Borrower or a Subsidiary could incur
liability.

“NAIC” shall mean the National Association of
Insurance Commissioners.

“Net Cash Proceeds” shall mean, with respect to
any capital contribution to, or any sale or issuance of Equity Interests by,
the Borrower, the gross cash proceeds received from such event, net of Taxes
paid or payable as a result thereof, and reasonable transaction costs (including,
as applicable, any underwriting, brokerage or other customary commissions and
reasonable legal, accounting, advisory and other fees and expenses associated
therewith) received from any such event, provided that Net Cash Proceeds
shall not include any proceeds realized from the sale of the Borrower’s Equity
Interests to officers, employees or directors or consultants upon the exercise
of options or other rights to purchase or acquire the Borrower’s Equity
Interests pursuant to any employment agreements, employee benefit plans, stock
option plans and other similar compensatory arrangements with officers, employees
or directors.

“Non-Defaulting Lender” shall mean and include
each Lender other than a Defaulting Lender.

“Non-Wholly Owned Subsidiary” shall mean, as to
any Person, each Subsidiary of such Person which is not a Wholly-Owned
Subsidiary of such Person.

“Note” shall mean each Revolving Note and the
Swingline Note.

“Notice Office” shall mean the office of the
Administrative Agent located at 100 Plaza One, 8th Floor, Jersey City, New Jersey 07302,
Attention:  Juliet Cadiz (201) 593-2309
(fax) or such other office or person as the Administrative Agent may hereafter
designate in writing as such to the other parties hereto.

“Obligations” shall mean all amounts owing to the
Arrangers, the Administrative Agent, the Collateral Agent, any Issuing Lender,
the Swingline Lender or any Lender pursuant to the terms of this Agreement or
any other Credit Document, including the principal and interest (including
interest accruing during the pendency of any bankruptcy or insolvency
proceeding, regardless of whether allowed or allowable in such proceeding) on
the Loans.

 18
 

 

“Off-Balance Sheet Liabilities” of any Person
shall mean (i) any repurchase obligation or liability of such Person with
respect to accounts or notes receivable sold by such Person, (ii) any liability
of such Person under any sale and leaseback transactions that do not create a
liability on the balance sheet of such Person, (iii) any obligation under a
Synthetic Lease or (iv) any obligation arising with respect to any other
transaction which is the functional equivalent of or takes the place of
borrowing but which does not constitute a liability on the balance sheet of
such Person.

“Other Hedging Agreements” shall mean any
foreign exchange contracts, currency swap agreements, commodity agreements or
other similar arrangements, or arrangements designed to protect against
fluctuations in currency values or commodity prices.

“Patriot Act” means the Uniting and
Strengthening America By Providing Appropriate Tools Required to Intercept And
Obstruct Terrorism (USA Patriot Act) Act of 2001.

“Payment Office” shall mean the office of the
Administrative Agent located at 100 Plaza One, 8th Floor, Jersey City, New Jersey 07302 or such other
office as the Administrative Agent may hereafter designate in writing as such
to the other parties hereto.

“PBGC” shall mean the United States Pension
Benefit Guaranty Corporation or any successor thereto.

“Pension Plan” shall mean an employee pension
benefit plan (other than a Multiemployer Plan) which is covered by Title IV of
ERISA or subject to the minimum funding standards under Section 412 of the Code
or Section 302 of ERISA and is maintained or contributed to by any ERISA
Entity or with respect to which the Borrower or a Subsidiary could incur liability.

“Permitted Acquisition” shall mean the
acquisition by the Borrower or a Wholly-Owned Domestic Subsidiary of the
Borrower which is a Guarantor of an Acquired Entity or Business or of assets
(including by way of merger of any such Acquired Entity or Business with and
into the Borrower (so long as the Borrower is the surviving corporation) or a
Wholly-Owned Domestic Subsidiary of the Borrower which is a Guarantor (so long
as the Guarantor is the surviving corporation)), provided that all
requirements of Sections 9.13 and 10.02 applicable to Permitted Acquisitions
are satisfied.

“Permitted Acquisition Basket Amount” shall
mean (i) for the Borrower’s fiscal year ending October 31, 2007,
$100.0 million, and (ii) for each fiscal year of the Borrower thereafter,
$100.0 million plus, so long as immediately after such Permitted Acquisition
and any related transaction or borrowing the Borrower satisfies the Liquidity
Test, an amount equal to the Available Amount.

“Permitted Asset Swap” shall mean the
concurrent purchase and sale or exchange of Related Business Assets and cash or
Cash Equivalents between the Borrower or any of its Subsidiaries and another
Person.

“Permitted Subordinated Debt” shall mean
unsecured Indebtedness of the Borrower (that may be guaranteed by those
subsidiaries that are Credit Parties) that (a) does not have

 19
 

 

a stated maturity date prior to the date that is 180
days after the Revolving Loan Maturity Date, (b) does not require any scheduled
payment of principal (including pursuant to a sinking fund obligation) or
amortization prior to the date that is 180 days after the Revolving Loan
Maturity Date, (c) is (and all guarantees with respect thereto are)
contractually subordinated to the Obligations on terms no less favorable to the
Lenders than those contained in a customary high-yield note issuance, (d)
contains non-pricing terms (including covenants, events of default, remedies,
redemption provisions and sinking fund provisions) no less favorable to the
Lenders than those usual and customary for a high-yield note issuance, and (e)
bears a market rate of interest as determined by the Borrower’s board of
directors.

“Person” shall mean any individual,
partnership, joint venture, firm, corporation, association, limited liability
company, trust or other enterprise or any government or political subdivision
or any agency, department or instrumentality thereof.

“Preferred Equity”, as applied to the Equity
Interests of any Person, means Equity Interests of such Person (other than
common Equity Interests of such Person) of any class or classes (however
designed) that ranks prior, as to the payment of dividends or as to the distribution
of assets upon any voluntary or involuntary liquidation, dissolution or winding
up of such Person, to shares of Equity Interests of any other class of such
Person.

“Prime Lending Rate” shall mean the rate which
the Administrative Agent announces from time to time as its prime lending rate,
the Prime Lending Rate to change when and as such prime lending rate
changes.  The Prime Lending Rate is a
reference rate and does not necessarily represent the lowest or best rate
actually charged to any customer by the Administrative Agent, which may make
commercial loans or other loans at rates of interest at, above or below the
Prime Lending Rate.

“Pro Forma Basis” shall mean, in connection
with any calculation of compliance with any financial covenant or financial
term, the calculation thereof after giving effect on a Pro Forma Basis to (x)
the incurrence or permanent repayment of any Indebtedness after the first day
of the relevant Calculation Period or Test Period, as the case may be, and (y)
any Permitted Acquisition then being consummated as well as any other Permitted
Acquisition if consummated after the first day of the relevant Test Period or
Calculation Period, as the case may be, and on or prior to the date of the
respective Permitted Acquisition, then being effected, with the following rules
to apply in connection therewith:

(i)            all Indebtedness (to the extent
incurred to refinance other outstanding Indebtedness or to finance Permitted
Acquisitions) incurred or issued or permanently repaid after the first day of
the relevant Test Period or Calculation Period (whether incurred to finance a
Permitted Acquisition, to refinance Indebtedness or otherwise) shall be deemed
to have been incurred or issued (and the proceeds thereof applied) or
permanently repaid on the first day of such Test Period or Calculation Period,
as the case may be, and, in the case of debt incurred or issued, remain
outstanding through the date of determination (and thereafter, in the case of
projections pursuant to Section 9.13);

(ii)           all Indebtedness assumed to be
outstanding pursuant to preceding clause (i) shall be deemed to have borne
interest at (x) the rate applicable thereto, in the case of

 20

 

fixed
rate indebtedness or (y) the rates which would have been applicable thereto
during the respective period when same was deemed outstanding, in the case of
floating rate Indebtedness (although interest expense with respect to any
Indebtedness for periods while same was actually outstanding during the
respective period shall be calculated using the actual rates applicable thereto
while same was actually outstanding); provided that all Indebtedness
(whether actually outstanding or deemed outstanding) bearing interest at a
floating rate of interest shall be tested on the basis of the rates applicable
at the time the determination is made pursuant to said provisions;

(iii)          in
making any determination of Consolidated EBITDA on a Pro Forma Basis, pro forma
effect shall be given to any Permitted Acquisition if effected during the
respective Calculation Period or Test Period (or thereafter, for purposes of
determinations pursuant to Section 9.13 and the definition of “Applicable
Margin” only) as if same had occurred on the first day of the respective
Calculation Period or Test Period, as the case may be, taking into account all
Pro Forma Cost Savings; and

(iv)          in
making any determination of Consolidated EBITDA on a Pro Forma Basis for the
twelve month period ended on October 31, 2006, such Consolidated EBITDA for
such 12 month period shall equal the product obtained by multiplying (x) the
quotient obtained by dividing Consolidated EBITDA for the nine month period
ended October 31, 2006 by nine by (y) twelve.

“Pro Forma Cost Savings” shall mean, with
respect to any period, the reduction in net costs and related adjustments that
(i) were directly attributable to an acquisition that occurred during the
four-quarter period or after the end of the four-quarter period and on or prior
to the Calculation Period or Test Period and calculated on a basis that is
consistent with Regulation S-X under the Securities Act, (ii) were actually
implemented by the business that was the subject of any such acquisition within
six months after the date of the acquisition and prior to the Calculation
Period or Test Period that are supportable and quantifiable by the underlying
accounting records of the Borrower or such business or (iii) relate to the
business that is the subject of any such acquisition, or relate to such
acquisition, and that the Borrower reasonably determines are probable based
upon specifically identifiable actions to be taken within six months of the
date of the acquisition and, in the case of each of clauses (i), (ii) and
(iii), are described, as provided below, in an officers’ certificate, as if all
such reductions in costs had been effected as of the beginning of such
period.  Pro Forma Cost Savings described
above shall be accompanied by a certificate delivered to the Administrative
Agent from an Authorized Officer of the Borrower that outlines the specific
actions taken or to be taken, the net cost savings achieved or to be achieved
from each such action and that, in the case of clause (iii) above, such savings
have been reasonably determined to be probable.

“Projections” shall mean the projections that
were prepared by or on behalf of the Borrower in connection with the
Transaction and set forth in the Confidential Information Memorandum dated
November 2006.

“Quarterly Payment Date” shall mean the last
Business Day of each March, June, September and December occurring after the
Initial Borrowing Date.

 21
 

 

“Quarterly Pricing Certificate” shall have the
meaning provided in the definition of Applicable Margin.

“Real Property” of any Person shall mean,
collectively, all right, title and interest (including any leasehold, mineral
or other estate) in and to any and all parcels of or interests in real property
owned, leased or operated by any Person, whether by lease, license or other
means, together with, in each case, all easements, hereditaments and
appurtenances relating thereto, all improvements and appurtenant fixtures and
equipment, all general intangibles and contract rights and other property and
rights incidental to the ownership, lease or operation thereof.

 “Related
Business Assets” shall mean assets (other than cash or Cash Equivalents)
used or useful in a Permitted Business, provided that any assets
received in exchange for assets transferred by the Borrower or any of its
Subsidiaries shall not constitute Related Business Assets if they are
securities of a Person unless, upon receipt of any such securities, such Person
would become a Subsidiary.

 “Required
Lenders” shall mean, at any time, Non-Defaulting Lenders the sum of whose
outstanding Revolving Loan Commitments represents a majority of the sum of all
outstanding Loans of Non-Defaulting Lenders.

“Restricted” shall mean, when referring to cash
or Cash Equivalents of the Borrower or any of the Guarantors, that such cash or
Cash Equivalents (i) appears (or would be required to appear) as “restricted”
on a consolidated balance sheet of the Borrower or of any such Guarantor
(unless such appearance is related to the Credit Documents or Liens created
thereunder), (ii) are subject to any Lien in favor of any Person other than the
Collateral Agent for the benefit of the Secured Parties or (iii) are not
otherwise generally available for use by the Borrower or such Guarantor.

“Revolving Loan Commitment” shall mean, for
each Lender, the amount set forth opposite such Lender’s name in Schedule I
directly below the column entitled “Revolving Loan Commitment,” as same may be
(x) reduced from time to time or terminated pursuant to Sections 4.02, 4.03
and/or 11, as applicable, or (y) adjusted from time to time as a result of assignments
to or from such Lender pursuant to Section 2.11 or 13.04(b).

“Revolving Loan Maturity Date” shall mean
November 30, 2011.

“RL Lender” shall mean each Lender with a
Revolving Loan Commitment or with outstanding Revolving Loans.

“RL Percentage” of any RL Lender at any time
shall mean a fraction (expressed as a percentage) the numerator of which is the
Revolving Loan Commitment of such RL Lender at such time and the denominator of
which is the Total Revolving Loan Commitment at such time, provided that
if the RL Percentage of any RL Lender is to be determined after the Total
Revolving Loan Commitment has been terminated, then the RL Percentages of such
RL Lender shall be determined immediately prior (and without giving effect) to
such termination.

“Secured Parties” shall have the meaning
assigned that term in the applicable Security Documents.

 22
 

 

“Securities Act” shall mean the Securities Act
of 1933, as amended, and the rules and regulations promulgated thereunder.

“Security Agreement Collateral” shall mean all “Pledged
Collateral” as defined in the Security Agreement.

“Security Document” shall mean and include each
of the Security Agreement, each Mortgage and, after the execution and delivery
thereof, each Additional Security Document and each other security document,
instrument or pledge agreement delivered to grant a security interest in any
property as collateral for the Secured Obligations (as defined in the Security
Agreement).

“Start Date” shall have the meaning provided in
the definition of Applicable Margin.

“Stated Amount” of each Letter of Credit shall
mean, at any time, the maximum amount available to be drawn thereunder (in each
case determined without regard to whether any conditions to drawing could then
be met).

“Subordinated Indebtedness” means Indebtedness
of the Borrower or any Subsidiary that is contractually subordinated to the
Obligations.

“Subsidiary” shall mean, as to any Person, (i)
any corporation more than 50% of whose stock of any class or classes having by
the terms thereof ordinary voting power to elect a majority of the directors of
such corporation (irrespective of whether or not at the time stock of any class
or classes of such corporation shall have or might have voting power by reason
of the happening of any contingency) is at the time owned by such Person and/or
one or more Subsidiaries of such Person and (ii) any partnership, limited
liability company, association, joint venture or other entity in which such
Person and/or one or more Subsidiaries of such Person has more than a 50%
equity interest at the time.  Unless
otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in
this Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.

“Survey” shall mean a survey of any Mortgaged
Property (and all improvements thereon) which is (a) (i) prepared by a
surveyor or engineer licensed to perform surveys in the jurisdiction where such
Mortgaged Property is located, (ii) dated (or redated) not earlier than six
months prior to the date of delivery thereof unless there shall have occurred
within six months prior to such date of delivery any exterior construction on
the site of such Mortgaged Property or any easement, right of way or other
interest in the Mortgaged Property has been granted or become effective through
operation of law or otherwise with respect to such Mortgaged Property which, in
either case, can be depicted on a survey, in which events, as applicable, such
survey shall be dated (or redated) after the completion of such construction or
if such construction shall not have been completed as of such date of delivery,
not earlier than 20 days prior to such date of delivery, or after the
grant or effectiveness of any such easement, right of way or other interest in
the Mortgaged Property, (iii) certified by the surveyor (in a manner
reasonably acceptable to the Administrative Agent) to the Administrative Agent,
the Collateral Agent and the Title Company, (iv) complying in all respects
with the minimum detail requirements of the American Land Title

 23
 

 

Association as such requirements are in effect on the
date of preparation of such survey and (v) sufficient for the Title
Company to remove all standard survey exceptions from the title insurance
policy (or commitment) relating to such Mortgaged Property and issue the endorsements
of the type required by Section 9.11(c)(iii) or (b) otherwise acceptable
to the Collateral Agent.

“Swingline Expiry Date” shall mean that date
which is five Business Days prior to the Revolving Loan Maturity Date.

“Swingline Lender” shall mean Deutsche Bank
Trust Company Americas.

“Syndication Date” shall mean the earlier of
(i) the 30th day following the Initial Borrowing Date and
(ii) that date upon which the Administrative Agent determines in its sole
discretion (and notifies the Borrower) that the primary syndication (and
resultant addition of Persons as Lenders pursuant to Section 13.04(b)) has been
completed.

“Synthetic Lease” shall mean a lease
transaction under which the parties intend that (i) the lease will be treated
as an “operating lease” by the lessee and (ii) the lessee will be entitled to
various tax and other benefits ordinarily available to owners (as opposed to
lessees) of like property.

“Tax” or “Taxes” shall mean all present
or future taxes, levies, imposts, duties, fees, assessments or other charges of
whatever nature now or hereafter imposed by any jurisdiction or by any
political subdivision or taxing authority thereof or therein, and all interest,
penalties or similar liabilities applicable thereto.

“Test Period” shall mean each period of four
consecutive fiscal quarters of the Borrower then last ended, in each case taken
as one accounting period.

“Title Company” shall mean any title insurance
company as shall be retained by the Borrower and reasonably acceptable to the
Administrative Agent.

“Title Policy” shall have the meaning assigned
to such term in Section 9.11(c)(iii).

“Total Leverage Ratio” shall mean, on any date
of determination, the ratio of (x) Consolidated Indebtedness on such date
to (y) Consolidated EBITDA for the Test Period most recently ended on or prior
to such date; provided that for purposes of any calculation of the Total
Leverage Ratio pursuant to this Agreement, Consolidated EBITDA shall be determined
on a Pro Forma Basis in accordance with the definition of “Pro Forma Basis” contained
herein.

“Total Revolving Loan Commitment” shall mean,
at any time, the sum of the Revolving Loan Commitments of each of the Lenders
at such time.

“Total Unutilized Revolving Loan Commitment”
shall mean, at any time, an amount equal to the remainder of (x) the Total
Revolving Loan Commitment in effect at such time less (y) the sum of (i)
the aggregate principal amount of all Revolving Loans and Swingline Loans outstanding
at such time plus (ii) the aggregate amount of all Letter of Credit
Outstandings at such time.

 24
 

 

“Tranche” shall mean the applicable facility
and commitments utilized in making Loans hereunder, with there being two
separate Tranches, i.e., Revolving Loans and Swingline Loans.

“Transaction” shall mean, collectively, (i) the
execution, delivery and performance by each Credit Party of the Credit
Documents to which it is a party, the incurrence of Loans on the Initial
Borrowing Date and the use of proceeds thereof and (ii) the payment of all fees
and expenses in connection with the foregoing.

“Type” shall mean the type of Loan determined
with regard to the interest option applicable thereto, i.e., whether a
Base Rate Loan or a Eurodollar Loan.

“UCC” shall mean the Uniform Commercial Code as
from time to time in effect in the relevant jurisdiction.

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

 “Unutilized
Revolving Loan Commitment” shall mean, with respect to any Lender at any
time, such Lender’s Revolving Loan Commitment at such time less the sum
of (i) the aggregate outstanding principal amount of all Revolving Loans
made by such Lender at such time and (ii) such Lender’s RL Percentage of the
Letter of Credit Outstandings at such time.

“Wholly-Owned Domestic Subsidiary” shall mean,
as to any Person, any Wholly-Owned Subsidiary of such Person which is a
Domestic Subsidiary.

“Wholly-Owned Foreign Subsidiary” shall mean,
as to any Person, any Wholly-Owned Subsidiary of such Person which is a Foreign
Subsidiary.

“Wholly-Owned Subsidiary” shall mean, as to any
Person, (i) any corporation 100% of whose capital stock is at the time owned by
such Person and/or one or more Wholly-Owned Subsidiaries of such Person and
(ii) any partnership, association, joint venture or other entity in which such
Person and/or one or more Wholly-Owned Subsidiaries of such Person has a 100%
equity interest at such time.

“Withdrawal Liability” shall mean liability to
a Multiemployer Plan as a result of a complete or partial withdrawal from such
Multiemployer Plan, as such terms are defined in Part 1 of Subtitle E
of Title IV of ERISA.

	
  “Additional Security
  Documents”

  	
  Section 9.11

  
	
  “Bankruptcy
  Code”

  	
  Section 11.05

  
	
  “Borrower”

  	
  first paragraph

  
	
  “Commitment
  Commission”

  	
  Section 4.01(a)

  
	
  “Drawing”

  	
  Section 3.05(b)

  
	
  “Effective
  Date”

  	
  Section 13.10

  
	
  “Event of
  Default”

  	
  Section 11

  
	
  “Existing
  Bridge Credit Agreement”

  	
  recitals

  
	
  “Facing Fee”

  	
  Section 4.01(c)

  
	
  “Fee Letter”

  	
  Section 13.18

  

 

 25
 

 

 

	
  “Guaranty”

  	
  Section 6.06

  
	
  “Incremental
  Commitment Date”

  	
  Section 2.13(b)

  
	
  “Incremental
  Lender”

  	
  Section 2.13(b)

  
	
  “Intercompany
  Loans”

  	
  Section 10.05(viii)

  
	
  “Interest
  Period”

  	
  Section 2.08

  
	
  “Investments”

  	
  Section 10.05

  
	
  “Letter of
  Credit”

  	
  Section 3.01(a)

  
	
  “Letter of
  Credit Fee”

  	
  Section 4.01(b)

  
	
  “Letter of
  Credit Request”

  	
  Section 3.03(a)

  
	
  “Loan”

  	
  Section 2.01(a)

  
	
  “Mandatory
  Borrowing”

  	
  Section 2.01(c)

  
	
  “Notice of
  Borrowing”

  	
  Section 2.02(a)

  
	
  “Notice of
  Conversion/Continuation”

  	
  Section 2.05

  
	
  “Participant”

  	
  Section 3.04(a)

  
	
  “Permitted
  Business”

  	
  Section 10.13

  
	
  “Permitted
  Liens”

  	
  Section 10.01

  
	
  “Register”

  	
  Section 13.15

  
	
  “Replaced
  Lender”

  	
  Section 2.12

  
	
  “Replacement
  Lender”

  	
  Section 2.12

  
	
  “Revolving
  Loan”

  	
  Section 2.01(a)

  
	
  “Revolving
  Note”

  	
  Section 2.04(a)

  
	
  “SEC”

  	
  Section 9.01(f)

  
	
  “Section
  5.04(b)(ii) Certificate”

  	
  Section 5.04(b)(ii)

  
	
  “Security
  Agreement”

  	
  Section 6.07

  
	
  “Syndication
  Agent”

  	
  first paragraph

  
	
  “Swingline
  Loan”

  	
  Section 2.01(b)

  
	
  “Swingline
  Note”

  	
  Section 2.04(a)

  
	
  “Unpaid
  Drawing”

  	
  Section 3.05(a)

  

 

1.02.           Computation of Time Periods; Other Definitional
Provisions.  In this Agreement, in
the computation of periods of time from a specified date to a later specified
date, the word “from” means “from and including” and the words “to” and “until”
each mean “to but excluding.”  In this
Agreement, the word “including” shall be deemed to mean “including without
limitation.”

SECTION 2.                 Amount
and Terms of Credit.

2.01.           The Loans.

(a)           Subject to and upon the terms and conditions set forth
herein, each Lender with a Revolving Loan Commitment severally agrees to make,
at any time and from time to time on or after the Initial Borrowing Date and
prior to the Revolving Loan Maturity Date, a revolving loan or revolving loans
(each, a “Revolving Loan” and, collectively, the “Revolving Loans”
and together with the Swingline Loans, the “Loans”) to the Borrower,
which Revolving Loans (i) shall be denominated in Dollars, (ii) shall, at the
option of the Borrower, be incurred and maintained as, and/or converted into,
Base Rate Loans or Eurodollar Loans, provided that except as

 26
 

 

otherwise specifically provided in Section
2.09(b), all Revolving Loans comprising the same Borrowing shall at all times
be of the same Type, (iii) may be repaid and reborrowed in accordance with
the provisions hereof, and (iv) shall not exceed for any such Lender at
any time outstanding that aggregate principal amount which, when added to the
product of (x) such Lender’s RL Percentage and (y) the sum of (I) the aggregate
amount of all Letter of Credit Outstandings (exclusive of Unpaid Drawings which
are repaid with the proceeds of, and simultaneously with the incurrence of, the
respective incurrence of Revolving Loans) at such time and (II) the aggregate
principal amount of all Swingline Loans (exclusive of Swingline Loans which are
repaid with the proceeds of, and simultaneously with the incurrence of, the
respective incurrence of Revolving Loans) then outstanding, equals the
Revolving Loan Commitment of such Lender at such time.

(b)           Subject to and upon the terms and conditions set forth
herein, the Swingline Lender agrees to make, at any time and from time to time
on or after the Initial Borrowing Date and prior to the Swingline Expiry Date,
a revolving loan or revolving loans (each, a “Swingline Loan” and,
collectively, the “Swingline Loans”) to the Borrower, which Swingline
Loans (i) shall be incurred and maintained as Base Rate Loans, (ii) shall be
denominated in Dollars, (iii) may be repaid and reborrowed in accordance with
the provisions hereof, (iv) shall not exceed in aggregate principal amount at
any time outstanding, when combined with the aggregate principal amount of all
Revolving Loans then outstanding and the aggregate amount of all Letter of
Credit Outstandings at such time, an amount equal to the Total Revolving Loan
Commitment at such time, and (v) shall not exceed in aggregate principal amount
at any time outstanding the Maximum Swingline Amount.  Notwithstanding anything to the contrary
contained in this Section 2.01(b), (i) the Swingline Lender shall not be
obligated to make any Swingline Loans at a time when a Lender Default exists
with respect to an RL Lender unless the Swingline Lender has entered into arrangements
satisfactory to it and the Borrower to eliminate the Swingline Lender’s risk
with respect to the Defaulting Lender’s or Defaulting Lenders’ participation in
such Swingline Loans, including by the Borrower cash collateralizing such
Defaulting Lender’s or Defaulting Lenders’ RL Percentage of the outstanding
Swingline Loans, and (ii) the Swingline Lender shall not make any Swingline
Loan after it has received written notice from the Borrower, any other Credit
Party or the Required Lenders stating that a Default or an Event of Default
exists and is continuing until such time as the Swingline Lender shall have
received written notice (A) of rescission of all such notices from the party or
parties originally delivering such notice or notices or (B) of the waiver of
such Default or Event of Default by the Required Lenders.

(c)           On any Business Day, the Swingline Lender may, in its sole
discretion, give notice to the RL Lenders that the Swingline Lender’s
outstanding Swingline Loans shall be funded with one or more Borrowings of
Revolving Loans (provided that such notice shall be deemed to have been
automatically given upon the occurrence of a Default or an Event of Default
under Section 11.05 or upon the exercise of any of the remedies provided in the
last paragraph of Section 11), in which case one or more Borrowings of
Revolving Loans constituting Base Rate Loans (each such Borrowing, a “Mandatory
Borrowing”) shall be made on the immediately succeeding Business Day by all
RL Lenders pro  rata based on each such RL Lender’s RL Percentage
(determined before giving effect to any termination of the Revolving Loan Commitments
pursuant to the first paragraph of Section 10) and the proceeds thereof shall
be applied directly by the Swingline Lender to repay the Swingline Lender for
such outstanding Swingline

 27
 

 

Loans. 
Each RL Lender hereby irrevocably agrees to make Revolving Loans upon
one Business Day’s notice pursuant to each Mandatory Borrowing in the amount
and in the manner specified in the preceding sentence and on the date specified
in writing by the Swingline Lender notwithstanding (i) the amount of the
Mandatory Borrowing may not comply with the Minimum Borrowing Amount otherwise
required hereunder, (ii) whether any conditions specified in Section 7 are then
satisfied, (iii) whether a Default or an Event of Default then exists,
(iv) the date of such Mandatory Borrowing, and (v) the amount of the Total
Revolving Loan Commitment at such time. 
In the event that any Mandatory Borrowing cannot for any reason be made
on the date otherwise required above (including as a result of the commencement
of a proceeding under the Bankruptcy Code with respect to the Borrower), then
each RL Lender hereby agrees that it shall forthwith purchase (as of the date
the Mandatory Borrowing would otherwise have occurred, but adjusted for any
payments received from the Borrower on or after such date and prior to such
purchase) from the Swingline Lender such participations in the outstanding
Swingline Loans as shall be necessary to cause the RL Lenders to share in such
Swingline Loans ratably based upon their respective RL Percentages (determined
before giving effect to any termination of the Revolving Loan Commitments
pursuant to the last paragraph of Section 11), provided that
(x) all interest payable on the Swingline Loans shall be for the account
of the Swingline Lender until the date as of which the respective participation
is required to be purchased and, to the extent attributable to the purchased
participation, shall be payable to the participant from and after such date and
(y) at the time any purchase of participations pursuant to this sentence is
actually made, the purchasing RL Lender shall be required to pay the Swingline
Lender interest on the principal amount of participation purchased for each day
from and including the day upon which the Mandatory Borrowing would otherwise have
occurred to but excluding the date of payment for such participation, at the
overnight Federal Funds Rate for the first three days and at the interest rate
otherwise applicable to Revolving Loans maintained as Base Rate Loans hereunder
for each day thereafter.

2.02.        Notice
of Borrowing.

(a)           Whenever the Borrower desires to incur (x) Eurodollar
Loans hereunder, it shall give the Administrative Agent written notice (or
telephonic notice promptly confirmed in writing) at the Notice Office at least
two (2) Business Days’ prior notice of each Eurodollar Loan to be incurred
hereunder and (y) Base Rate Loans hereunder (excluding Swingline Loans and
Revolving Loans made pursuant to a Mandatory Borrowing), it shall give the
Administrative Agent at the Notice Office at least one Business Day’s prior
notice of each Base Rate Loan to be incurred hereunder, provided that
(in each case) any such notice shall be deemed to have been given on a certain
day only if given before 12:00 Noon (New York time) on such day.  Each such notice (each, a “Notice of
Borrowing”), except as otherwise expressly provided in Section 2.09, shall
be irrevocable and shall be in writing, or by telephone promptly confirmed in
writing, in the form of Exhibit A-1, appropriately completed to
specify (i) the date of the Borrowing (which shall be a Business Day after
the Effective Date but, in the case of the Initial Borrowing Date, no later
than November 30, 2006), (ii) the amount of the Borrowing,
(iii) whether the Loans being incurred pursuant to such Borrowing are to
be initially maintained as Base Rate Loans or, to the extent permitted
hereunder, Eurodollar Loans and, if Eurodollar Loans, the initial Interest
Period to be applicable thereto.  The
Administrative Agent shall promptly give each Lender written notice (or
telephonic notice promptly confirmed in writing) of the Borrowing of the Loans
and of the other matters covered by the Notice of Borrowing.

 28
 

 

(b)           (i)  Whenever the
Borrower desires to incur Swingline Loans hereunder, the Borrower shall give
the Swingline Lender no later than 1:00 P.M. (New York time) on the date that a
Swingline Loan is to be incurred, written notice or telephonic notice promptly
confirmed in writing of each Swingline Loan to be incurred hereunder.  Each such notice shall be irrevocable and
specify in each case (A) the date of Borrowing (which shall be a Business Day),
and (B) the aggregate principal amount of the Swingline Loans to be incurred
pursuant to such Borrowing.

(ii)           Mandatory Borrowings shall be made upon the notice
specified in Section 2.01(c), with the Borrower irrevocably agreeing, by
its incurrence of any Swingline Loan, to the making of the Mandatory Borrowings
as set forth in Section 2.01(c).

(c)           Without in any way limiting the obligation of the Borrower
to confirm in writing any notice it may give hereunder by telephone, the
Administrative Agent or the Swingline Lender, as the case may be, may act prior
to receipt of written confirmation without liability upon the basis of such
telephonic notice of such Borrowing or prepayment, as the case may be, believed
by the Administrative Agent or the Swingline Lender, as the case may be, in
good faith to be from a Authorized Officer of the Borrower prior to receipt of
written confirmation.  In each such case
the Borrower hereby waives the right to dispute the Administrative Agent’s or
the Swingline Lender’s record of the terms of any such telephonic notice of
such Borrowing or prepayment of Loans, as the case may be, absent manifest
error.

2.03.        Disbursement
of Funds.  No later than 1:00 P.M.
(New York time) on the date specified in each Notice of Borrowing (or (x)
in the case of Swingline Loans, no later than 4:00 P.M. (New York time) on the
date specified pursuant to Section 2.02(b)(i) or (y) in the case of Mandatory
Borrowings, no later than 1:00 P.M. (New York time) on the date specified in Section
2.01(b)), each Lender will make available its pro  rata portion of
the Loans (or in the case of Swingline Loans, the Swingline Lender will make
available the full amount thereof).  All
such amounts will be made available in Dollars and in immediately available
funds at the Payment Office, and the Administrative Agent will, except in the
case of Revolving Loans made pursuant to a Mandatory Borrowing, make available
to the Borrower at the Payment Office the aggregate of the amounts so made
available by the Lenders.  Unless the
Administrative Agent shall have been notified by any Lender prior to the date
of Borrowing that such Lender does not intend to make available to the Administrative
Agent such Lender’s portion of any Borrowing to be made on such date, the
Administrative Agent may assume that such Lender has made such amount available
to the Administrative Agent on such date of Borrowing and the Administrative
Agent may (but shall not be obligated to), in reliance upon such assumption,
make available to the Borrower a corresponding amount.  If such corresponding amount is not in fact
made available to the Administrative Agent by such Lender, the Administrative
Agent shall be entitled to recover such corresponding amount on demand from
such Lender.  If such Lender does not pay
such corresponding amount forthwith upon the Administrative Agent’s demand
therefor, the Administrative Agent shall promptly notify the Borrower and the
Borrower shall immediately pay such corresponding amount to the Administrative
Agent.  The Administrative Agent also
shall be entitled to recover on demand from such Lender or the Borrower, as the
case may be, interest on such corresponding amount in respect of each day from
the date such corresponding amount was made available by the Administrative
Agent to the Borrower until the date such corresponding amount is recovered by
the Administrative Agent, at a rate per annum equal to (i) if recovered

 29
 

 

from such Lender, the overnight Federal Funds
Rate for the first three days and at the interest rate otherwise applicable to
such Loans for each day thereafter and (ii) if recovered from the
Borrower, the rate of interest applicable to the respective Borrowing, as determined
pursuant to Section 2.07.  Nothing in
this Section 2.03 shall be deemed to relieve any Lender from its obligation to
make Loans hereunder or to prejudice any rights which the Borrower may have
against any Lender as a result of any failure by such Lender to make Loans
hereunder.

2.04.        Notes.

(a)           The Borrower’s obligation to pay the principal of, and
interest on, the Loans made by each Lender shall be evidenced in the Register
maintained by the Administrative Agent pursuant to Section 13.15 and shall, if
requested by such Lender, also be evidenced by a promissory note duly executed
and delivered by the Borrower substantially in the form of Exhibit B-1
or Exhibit B-2, with blanks appropriately completed in conformity
herewith, (i) in the case of Revolving Loans, by a promissory note duly
executed and delivered by the Borrower substantially in the form of Exhibit B-1,
with blanks appropriately completed in conformity herewith (each, a “Revolving
Note” and, collectively, the “Revolving Notes”), and (ii) in the
case of Swingline Loans, by a promissory note duly executed and delivered by
the Borrower substantially in the form of Exhibit B-2, with blanks
appropriately completed in conformity herewith (the “Swingline Note”).

(b)           Each Lender shall note on its internal records the amount
of the Loan made by it and each payment in respect thereof, and prior to any
transfer of its Notes will endorse on the reverse side thereof the outstanding
principal amount of Loans evidenced thereby. 
Failure to make any such notation or any error in such notation shall
not affect the Borrower’s obligations in respect of such Loans or any related
Obligations.

(c)           Notwithstanding anything to the contrary contained above
in this Section 2.04 or elsewhere in this Agreement, Notes shall only be
delivered to Lenders which at any time specifically request the delivery of
such Notes.  No failure of any Lender to
request or obtain a Note evidencing its Loans to the Borrower shall affect or
in any manner impair the obligations of the Borrower to pay the Loan (and all
related Obligations) incurred by the Borrower which would otherwise be
evidenced thereby in accordance with the requirements of this Agreement, and
shall not in any way affect the security or guaranties therefor provided pursuant
to the various Credit Documents.  Any
Lender which does not have a Note evidencing its outstanding Loans shall in no
event be required to make the notations otherwise described in preceding clause
(b).  At any time when any Lender
requests the delivery of a Note to evidence any of its Loans, the Borrower
shall promptly execute and deliver to the respective Lender the requested Note
in the appropriate amount or amounts to evidence such Loans.

2.05.           Conversions. 
The Borrower shall have the option to convert, on any Business Day, all
or a portion equal to at least the Minimum Borrowing Amount of the outstanding
principal amount of Loans (other than Swingline Loans, which may not be
converted pursuant to this Section 2.05) made pursuant to one or more Borrowings
of one or more Types of Loans into a Borrowing of another Type of Loan, provided
that (i) except as otherwise provided in Section 2.09(b), Eurodollar Loans
may be converted into Base Rate Loans only on the last day of an Interest
Period applicable to the Loans being converted and no such partial conversion
of

 30

 

Eurodollar Loans shall reduce the outstanding
principal amount of such Eurodollar Loans made pursuant to a single Borrowing
to less than the Minimum Borrowing Amount applicable thereto, (ii) Base
Rate Loans may only be converted into Eurodollar Loans if no Default or Event
of Default is in existence on the date of the conversion and so long as the
Administrative Agent has or the Required Lenders have not determined in its or
their sole discretion not to permit such continuation, (iii) unless the
Administrative Agent has determined that the Syndication Date has occurred (at
which time this clause (iii) shall no longer be applicable), prior to the 90th day following the Initial Borrowing Date,
conversions of Base Rate Loans into Eurodollar Loans may only be made if any
such conversion is effective on the first day of the first, second or third
Interest Period and so long as such conversion does not result in a greater
number of Borrowings of Eurodollar Loans prior to the 90th day after the Initial Borrowing Date than are
permitted under Section 2.01, and (iv) no conversion pursuant to this
Section 2.05 shall result in a greater number of Borrowings of Eurodollar Loans
than is permitted under Section 2.02. 
Each such conversion shall be effected by the Borrower by giving the
Administrative Agent at the Notice Office prior to 12:00 Noon (New York time)
at least (x) in the case of conversions of Base Rate Loans into Eurodollar
Loans, three Business Days’ prior notice and (y) in the case of conversions
of Eurodollar Loans into Base Rate Loans, one Business Day’s prior notice
(each, a “Notice of Conversion/Continuation”) in the form of Exhibit A-2,
appropriately completed to specify the Loans to be so converted, the Borrowing
or Borrowings pursuant to which such Loans were incurred and, if to be
converted into Eurodollar Loans, the Interest Period to be initially applicable
thereto.  The Administrative Agent shall
give each Lender prompt notice of any such proposed conversion affecting any of
its Loans.

2.06.        Maturity
Date.  The Loans will mature on the
Revolving Loan Maturity Date.

2.07.        Interest.

(a)           The Borrower agrees to pay interest in respect of the
unpaid principal amount of each Base Rate Loan from the date of Borrowing
thereof until the earlier of (i) the maturity thereof (whether by
acceleration or otherwise) and (ii) the conversion of such Base Rate Loan
to a Eurodollar Loan pursuant to Section 2.05 or 2.08, at a rate per annum
which shall be equal to the sum of the relevant Applicable Margin plus
the Base Rate, each as in effect from time to time.

(b)           The Borrower agrees to pay interest in respect of the
unpaid principal amount of each Eurodollar Loan from the date of Borrowing
thereof until the earlier of (i) the maturity thereof (whether by acceleration
or otherwise) and (ii) the conversion of such Eurodollar Loan to a Base Rate
Loan pursuant to Section 2.05, 2.08 or 2.09, as applicable, at a rate per annum
which shall, during each Interest Period applicable thereto, be equal to the
sum of the relevant Applicable Margin plus the Eurodollar Rate for such
Interest Period.  If all or a portion of
(i) the principal amount of the Loan or (ii) any interest payable
thereon 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 that
is (x) in the case of overdue principal, the rate described in Section
2.07(a) plus 2% or (y) in the case of any overdue interest, to the extent
permitted by applicable law, the rate described in Section 2.07(a) plus 2%
from and including the date of such

 31
 

 

non-payment to but excluding the date on
which such amount is paid in full (after as well as before judgment).

(c)           Accrued (and theretofore unpaid) interest shall be payable
(i) in respect of each Base Rate Loan, (x) quarterly in arrears on each
Quarterly Payment Date, (y) on the date of any repayment or prepayment in full
of all outstanding Base Rate Loans, and (z) at maturity (whether by
acceleration or otherwise) and, after such maturity, on demand, and (ii) in
respect of each Eurodollar Loan, (x) on the last day of each Interest Period
applicable thereto and, in the case of an Interest Period in excess of three
months, on each date occurring at three month intervals after the first day of
such Interest Period, and (y) on the date of any repayment or prepayment (on
the amount repaid or prepaid) in full of all outstanding Eurodollar Loans and
(z) at maturity (whether by acceleration or otherwise) and, after such
maturity, on demand.

(d)           Upon each Interest Determination Date, the Administrative
Agent shall determine the Eurodollar Rate for each Interest Period applicable
to the respective Eurodollar Loans and the Administrative Agent, upon
determining the interest rate for the Borrowing, shall promptly notify the
Borrower and the Lenders thereof.  Each
such determination shall, absent clearly demonstrable error, be final and
conclusive and binding on all parties hereto.

2.08.        Interest
Periods.  At the time the Borrower
gives any Notice of Borrowing or Notice of Conversion/Continuation in respect
of the making of, or conversion into, any Eurodollar Loan (in the case of the
initial Interest Period applicable thereto) or prior to 12:00 Noon (New York
time) on the third Business Day prior to the expiration of an Interest Period
applicable to such Eurodollar Loan (in the case of any subsequent Interest
Period), the Borrower shall have the right to elect the interest period (each,
an “Interest Period”) applicable to such Eurodollar Loan, which Interest
Period shall, at the option of the Borrower, be a one, two, three or six-month
(or nine or twelve-month, to the extent consented to by all Lenders) period.

Notwithstanding anything to the contrary contained
above:

(a)           all Eurodollar Loans comprising a
Borrowing shall at all times have the same Interest Period;

(b)           the initial Interest Period for any
Eurodollar Loan shall commence on the date of Borrowing of such Eurodollar Loan
(including the date of any conversion thereto from a Base Rate Loan) and each
Interest Period occurring thereafter in respect of such Eurodollar Loan shall
commence on the day on which the next preceding Interest Period applicable
thereto expires;

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

(d)           if any Interest Period for a
Eurodollar Loan would otherwise expire on a day that is not a Business Day,
such Interest Period shall expire on the next succeeding Business Day; provided
that if any Interest Period for a Eurodollar Loan would otherwise expire on a
day

 32
 

 

that is not a Business Day but
is a day of the month after which no further Business Day occurs in such month,
such Interest Period shall expire on the preceding Business Day;

(e)           no Interest Period may be selected at
any time when a Default or an Event of Default is then in existence and the
Administrative Agent has or the Required Lenders have determined in its or
their sole discretion not to permit such selection; and

(f)            the last Interest Period applicable
to the Loans shall end on the Maturity Date.

If by 12:00 Noon (New York time) on the third Business
Day prior to the expiration of any Interest Period applicable to a Borrowing of
Eurodollar Loans, the Borrower has failed to elect, or is not permitted to
elect, a new Interest Period to be applicable to such Eurodollar Loans as
provided above, the Borrower shall be deemed to have elected to convert such
Eurodollar Loans into Base Rate Loans effective as of the expiration date of
such current Interest Period.

2.09.        Increased
Costs, Illegality, etc.

(a)           In the event that any Lender shall have determined (which
determination shall, absent manifest error, be final and conclusive and binding
upon all parties hereto but, with respect to clause (i) below, may be made only
by the Administrative Agent):

(i)            on
any Interest Determination Date that, by reason of any changes arising after
the Effective Date affecting the interbank Eurodollar market, adequate and fair
means do not exist for ascertaining the applicable interest rate on the basis
provided for in the definition of Eurodollar Rate; or

(ii)           at
any time, that such Lender shall incur increased costs or reductions in the
amounts received or receivable hereunder with respect to any Eurodollar Loan because
of (x) any change since the Effective Date in any applicable law or governmental
rule, regulation, order, guideline or request (whether or not having the force
of law) or in the interpretation or administration thereof and including the
introduction of any new law or governmental rule, regulation, order, guideline
or request, such as, but not limited to: 
(A) a change in the basis of taxation of payment to any Lender of
the principal of or interest on the Loans or the Notes or any other amounts
payable hereunder (except for changes in the rate of tax on, or determined by
reference to, the net income or net profits of such Lender pursuant to the laws
of the jurisdiction in which it is organized or in which its principal office
or applicable lending office is located or any subdivision thereof or therein)
or (B) a change in official reserve requirements, but, in all events, excluding
reserves required under Regulation D to the extent included in the computation
of the Eurodollar Rate and/or (y) other circumstances arising since the
Effective Date affecting such Lender, the interbank Eurodollar market or the
position of such Lender in such market; or

(iii)          at
any time, that the making or continuance of any Eurodollar Loan has been made
(x) unlawful by any law or governmental rule, regulation or order, (y) impossible
by compliance by any Lender in good faith with any governmental request
(whether

 33
 

 

or not having force of law) or (z) impracticable as a result of a
contingency occurring after the Effective Date which materially and adversely
affects the interbank Eurodollar market;

then, and in any such event, such Lender (or the
Administrative Agent, in the case of clause (i) above) shall promptly give notice
(by telephone promptly confirmed in writing) to the Borrower and, except in the
case of clause (i) above, to the Administrative Agent of such determination
(which notice the Administrative Agent shall promptly transmit to each of the
other Lenders).  Thereafter (x) in the
case of clause (i) above, Eurodollar Loans shall no longer be available until
such time as the Administrative Agent notifies the Borrower and the Lenders
that the circumstances giving rise to such notice by the Administrative Agent
no longer exist, and any Notice of Borrowing or Notice of
Conversion/Continuation given by the Borrower with respect to Eurodollar Loans
which have not yet been incurred (including by way of conversion) shall be
deemed rescinded by the Borrower, (y) in the case of clause (ii) above, the
Borrower agrees to pay to such Lender, upon such Lender’s written request
therefor, such additional amounts (in the form of an increased rate of, or a
different method of calculating, interest or otherwise as such Lender in its
sole discretion shall determine) as shall be required to compensate such Lender
for such increased costs or reductions in amounts received or receivable
hereunder (a written notice as to the additional amounts owed to such Lender,
showing in reasonable detail the basis for the calculation thereof, submitted
to the Borrower by such Lender shall, absent manifest error, be final and conclusive
and binding on all the parties hereto) and (z) in the case of clause (iii)
above, the Borrower shall take one of the actions specified in Section 2.09(b)
as promptly as possible and, in any event, within the time period required by
law.

(b)           At any time that any Eurodollar Loan is affected by the
circumstances described in Section 2.09(a)(ii), the Borrower may, and in the
case of a Eurodollar Loan affected by the circumstances described in Section
2.09(a)(iii), the Borrower shall, either (x) if the affected Eurodollar Loan is
then being made initially or pursuant to a conversion, cancel such Borrowing by
giving the Administrative Agent telephonic notice (confirmed in writing) on the
same date that the Borrower was notified by the affected Lender or the
Administrative Agent pursuant to Section 2.09(a)(ii) or (iii) or (y) if the
affected Eurodollar Loan is then outstanding, upon at least three Business Days’
written notice to the Administrative Agent, require the affected Lender to
convert such Eurodollar Loan into a Base Rate Loan, provided that, if
more than one Lender is affected at any time, then all affected Lenders must be
treated the same pursuant to this Section 2.09(b).

(c)           If any Lender determines that after the Effective Date the
introduction of or any change in any applicable law or governmental rule,
regulation, order, guideline, directive or request (whether or not having the
force of law) concerning capital adequacy, or any change in interpretation or
administration thereof by the National Association of Insurance Commissioners
or any governmental authority, central bank or comparable agency, will have the
effect of increasing the amount of capital required or expected to be
maintained by such Lender or any corporation controlling such Lender based on
the existence of such Lender’s obligations hereunder, then the Borrower agrees
to pay to such Lender, upon its written demand therefor, such additional
amounts as shall be required to compensate such Lender or such other
corporation for the increased cost to such Lender or such other corporation or
the reduction in the rate of return to such Lender or such other corporation as
a result of such increase of capital.  In
determining

 34
 

 

such additional amounts, each Lender will act
reasonably and in good faith and will use averaging and attribution methods
which are reasonable, provided that such Lender’s determination of
compensation owing under this Section 2.09(c) shall, absent manifest error, be
final and conclusive and binding on all the parties hereto.  Each Lender, upon determining that any
additional amounts will be payable pursuant to this Section 2.09(c), will give
prompt written notice thereof to the Borrower, which notice shall show in
reasonable detail the basis for calculation of such additional amounts.

2.10.        Compensation.  The Borrower agrees to compensate each
Lender, upon its written request (which request shall set forth in reasonable
detail the basis for requesting such compensation), for all losses, expenses
and liabilities (including any loss, expense or liability incurred by reason of
the liquidation or reemployment of deposits or other funds required by such
Lender to fund its Eurodollar Loans but excluding loss of anticipated profits)
which such Lender may sustain:  (i) if
for any reason (other than a default by such Lender or the Administrative
Agent) the Borrowing of, or conversion from or into, Eurodollar Loans does not
occur on a date specified therefor in the Notice of Borrowing or Notice of
Conversion/Continuation; (ii) if any prepayment or repayment (including any
prepayment or repayment made pursuant to Section 5.01 or as a result of an
acceleration of the Loan pursuant to Section 10) or conversion of any of
its Eurodollar Loans occurs on a date which is not the last day of an Interest
Period with respect thereto; (iii) if any prepayment of its Eurodollar Loans is
not made on any date specified in a notice of prepayment given by the Borrower;
or (iv) as a consequence of (x) any other default by the Borrower to
repay Eurodollar Loans when required by the terms of this Agreement or any Note
held by such Lender or (y) any election made pursuant to Section 2.09(b).

2.11.        Change
of Lending Office.  Each Lender
agrees that on the occurrence of any event giving rise to the operation of
Section 2.09 or Section 5.04 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 or Letter of Credit affected by such event, provided that such
designation is made on such terms that such Lender and its lending office
suffer no economic, legal or regulatory disadvantage, with the object of
avoiding or mitigating the consequence of the event giving rise to the operation
of such Section.  Nothing in this
Section 2.11 shall affect or postpone any of the obligations of the
Borrower or the right of any Lender provided in Sections 2.09 and 5.04.

2.12.        Replacement
of Lenders.  (x) If any Lender
becomes a Defaulting Lender, (y) upon the occurrence of any event giving rise
to the operation of Section 2.09(a)(ii) or (iii), Section 2.09(c),
Section 3.06 or Section 5.04(a) with respect to any Lender that results in
such Lender charging to the Borrower increased costs or additional amounts in
excess of those being generally charged by the other Lenders or (z) in the case
of a refusal by a Lender to consent to a proposed change, waiver, discharge or
termination with respect to this Agreement which has been approved by the
Required Lenders as (and to the extent) provided in Section 13.12, the
Borrower shall have the right, in accordance with Section 13.04(b), if no Default
or Event of Default then exists or would exist after giving effect to such
replacement, to replace such Lender (the “Replaced Lender”) with one or
more other Eligible Transferees, none of whom shall constitute a Defaulting
Lender at the time of such replacement (collectively, the “Replacement
Lender”) and each of which shall be reasonably acceptable to the Administrative
Agent, provided that (a) at the time of any replacement pursuant to this
Section 2.12, the

 35
 

 

Replacement Lender shall enter into one or more Assignment and
Assumption Agreements pursuant to Section 13.04(b) (and with all fees payable
pursuant to said Section 13.04(b) to be paid by the Replacement Lender and/or
the Replaced Lender (as may be agreed to at such time by and among the
Borrower, the Replacement Lender and the Replaced Lender)) pursuant to which
the Replacement Lender shall acquire all of the Revolving Loan Commitments and
outstanding Revolving Loans and participations in Letter of Credit Outstandings
and/or (b) in each case, all participations in Letters of Credit by, the Replaced
Lender and, in connection therewith, shall pay to (x) the Replaced Lender in
respect thereof an amount equal to the sum of (A) an amount equal to the
principal of, and all accrued interest on, all outstanding Loans of the
respective Replaced Lender under each Tranche with respect to which such
Replaced Lender is being replaced, (B) an amount equal to all Unpaid Drawings
(unless there are no Unpaid Drawings with respect to the Tranche being
replaced) that have been funded by (and not reimbursed to) such Replaced
Lender, together with all then unpaid interest with respect thereto at such
time and (C) an amount equal to all accrued, but theretofore unpaid, Fees owing
to the Replaced Lender (but only with respect to the relevant Tranche, in the
case of the replacement of less than all Tranches of Loans then held by the respective
Replaced Lender) pursuant to Section 4.01, (y) each Letter of Credit Issuer an
amount equal to such Replaced Lender’s RL Percentage of any Unpaid Drawing relating
to Letters of Credit issued by such Letter of Credit Issuer (which at such time
remains an Unpaid Drawing) to the extent such amount was not theretofore funded
by such Replaced Lender and (z) in the case of any replacement of Revolving
Loan Commitments, the Swingline Lender an amount equal to such Replaced Lender’s
RL Percentage of any Mandatory Borrowing to the extent such amount was not
theretofore funded by such Replaced Lender to the Swingline Lender.

Upon receipt by the Replaced Lender of all amounts
required to be paid to it pursuant to this Section 2.12, the Administrative
Agent shall be entitled (but not obligated) and authorized to execute an
Assignment and Assumption Agreement on behalf of such Replaced Lender, and any
such Assignment and Assumption Agreement so executed by the Administrative
Agent and the Replacement Lender shall be effective for purposes of this
Section 2.12 and Section 13.04.  Upon the
execution of the respective Assignment and Assumption Agreement, the payment of
amounts referred to in clauses (a) and (b) above, and, if so requested by the Replacement
Lender, delivery to the Replacement Lender of the appropriate Note or Notes executed
by the Borrower, (x) the Replacement Lender shall become a Lender hereunder
and, unless the respective Replaced Lender continues to have an outstanding
Revolving Loan Commitment hereunder, the Replaced Lender shall cease to constitute
a Lender hereunder, except with respect to indemnification provisions under
this Agreement (including Sections 2.09, 2.10, 3.06, 5.04, 12.06, 13.01 and
13.06), which shall survive as to such Replaced Lender and (y) the RL Percentages
of the Lenders shall be automatically adjusted at such time to give effect to
such replacement.

2.13.        Incremental
Commitments.

(a)           So long as the Incremental Commitment Request Requirements
are satisfied at the time of the delivery of the request referred to below, the
Borrower shall have the right, in consultation and coordination with the
Administrative Agent as to all of the matters set forth below in this Section
2.13, but without requiring the consent of any of the Lenders, to request at
any time and from time to time after the Initial Borrowing Date and prior to
the date that is three

 36
 

 

months prior to the Revolving Loan Maturity
Date, that one or more Lenders (and/or one or more other Persons that are
Eligible Transferees and that will become Lenders as provided below) provide
Incremental Commitments, it being understood and agreed, however, that (i) no
Lender shall be obligated to provide an Incremental Commitment as a result of
any such request by the Borrower, and until such time, if any, as such Lender
has agreed in its sole discretion to provide an Incremental Commitment and executed
and delivered to the Administrative Agent an Incremental Commitment Agreement
in respect thereof as provided in clause (b) of this Section 2.13, such Lender
shall not be obligated to fund any Revolving Loans or participate in Swingline
Loans or Letters of Credit in excess of its Revolving Loan Commitment as in
effect prior to giving effect to such Incremental Commitment provided pursuant
to this Section 2.13, (ii) any Lender (including any Eligible Transferee
that will become a Lender) may so provide an Incremental Commitment without the
consent of any other Lender, (iii) each provision of Incremental Commitments on
a given date pursuant to this Section 2.13 shall be in a minimum aggregate
amount (for all Lenders (including any Eligible Transferee that will become a
Lender)) of at least $25,000,000 and in integral multiples of $5,000,000 in
excess thereof, and (iv) the aggregate amount of all Incremental
Commitments provided pursuant to this Section 2.13 shall not exceed
$100,000,000.

(b)           At the time of the provision of Incremental Commitments
pursuant to this Section 2.13, the Borrower, the Administrative Agent and each
such Lender or other Eligible Transferee that agrees to provide an Incremental
Commitment (each, an “Incremental Lender”) shall execute and deliver to
Administrative Agent an Incremental Commitment Agreement, with the
effectiveness of such Incremental Lender’s Incremental Commitment to occur on
the date set forth in such Incremental Commitment Agreement (the “Incremental
Commitment Date”), which date in any event shall be no earlier than the
date on which (w) all fees required to be paid in connection therewith at the
time of such effectiveness shall have been paid (including any agreed upon
up-front or arrangement fees owing to the Administrative Agent (or any
affiliate thereof)), (x) all Incremental Commitment Requirements shall have
been satisfied, (y) all other conditions set forth in this Section 2.13 shall
have been satisfied, and (z) all other conditions precedent that may be set
forth in such Incremental Commitment Agreement shall have been satisfied.  The Administrative Agent shall promptly
notify each Lender as to the effectiveness of each Incremental Commitment
Agreement, and at such time, (i) the Total Revolving Loan Commitment under, and
for all purposes of, this Agreement shall be increased by the aggregate amount
of such Incremental Commitments, (ii) Schedule I shall be deemed modified to
reflect the revised Revolving Loan Commitments of the affected Lenders and
(iii) to the extent requested by any Incremental Lender, Notes shall be issued,
at the expense of the Borrower, to such Incremental Lender in conformity with
the requirements of Section 2.04(a).

(c)           At the time of any provision of Incremental Commitments
pursuant to this Section 2.13, the Borrower shall, in coordination with the
Administrative Agent, repay outstanding Revolving Loans of certain of the Lenders,
and incur additional Revolving Loans from certain other Lenders (including the
Incremental Lenders), in each case to the extent necessary so that all of the
Lenders participate in each outstanding borrowing of Revolving Loans pro rata
on the basis of their respective Revolving Loan Commitments (after giving
effect to any increase in the Total Revolving Loan Commitment pursuant to this
Section 2.13) and with the Borrower being obligated to pay to the applicable
Lenders any costs of the type referred to in Section 2.09 in connection with
any such repayment and/or incurrence.

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SECTION 3.                 Letters
of Credit.

3.01.        Letters
of Credit.

(a)           Subject to and upon the terms and conditions set forth
herein, the Borrower may request that an Issuing Lender issue, at any time and
from time to time on and after the Initial Borrowing Date and prior to the 30th day prior to the Revolving Loan Maturity Date,
for the account of the Borrower and for the benefit of (x) any holder (or any
trustee, agent or other similar representative for any such holders) of L/C
Supportable Obligations, an irrevocable standby letter of credit, in a form
customarily used by such Issuing Lender or in such other form as is reasonably
acceptable to such Issuing Lender, and (y) sellers of goods to the Borrower or
any of its Subsidiaries, an irrevocable trade letter of credit, in a form
customarily used by such Issuing Lender or in such other form as has been
approved by such Issuing Lender (each such letter of credit, a “Letter of
Credit” and, collectively, the “Letters of Credit”).  All Letters of Credit shall be denominated in
Dollars and shall be issued on a sight basis only.

(b)           Subject to and upon the terms and conditions set forth
herein, each Issuing Lender agrees that it will, at any time and from time to
time on and after the Initial Borrowing Date and prior to the 30th day prior to the Revolving Loan Maturity Date,
following its receipt of the respective Letter of Credit Request, issue for
account of the Borrower, one or more Letters of Credit as are permitted to
remain outstanding hereunder without giving rise to a Default or an Event of
Default, provided that no Issuing Lender shall be under any obligation
to issue any Letter of Credit of the types described above if at the time of
such issuance:

(i)            any
order, judgment or decree of any governmental authority or arbitrator shall
purport by its terms to enjoin or restrain such Issuing Lender from issuing
such Letter of Credit or any requirement of law applicable to such Issuing
Lender or any request or directive (whether or not having the force of law)
from any governmental authority with jurisdiction over such Issuing Lender
shall prohibit, or request that such Issuing Lender refrain from, the issuance
of letters of credit generally or such Letter of Credit in particular or shall
impose upon such Issuing Lender with respect to such Letter of Credit any
restriction or reserve or capital requirement (for which such Issuing Lender is
not otherwise compensated hereunder) not in effect with respect to such Issuing
Lender on the date hereof, or any unreimbursed loss, cost or expense which was
not applicable or in effect with respect to such Issuing Lender as of the date
hereof and which such Issuing Lender reasonably and in good faith deems
material to it; or

(ii)           such
Issuing Lender shall have received from the Borrower, any other Credit Party or
the Required Lenders prior to the issuance of such Letter of Credit notice of
the type described in the second sentence of Section 3.03(b).

3.02.           Maximum Letter of Credit Outstandings; Final Maturities.  Notwithstanding anything to the contrary
contained in this Agreement, (i) no Letter of Credit shall be issued the Stated
Amount of which, when added to the Letter of Credit Outstandings (exclusive of
Unpaid Drawings which are repaid on the date of, and prior to the issuance of,
the respective Letter of Credit) at such time would exceed either (x) $15.0
million or (y) when added to the sum of (I) the aggregate principal amount of
all Revolving Loans then outstanding and (II) the aggregate

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principal amount of all Swingline Loans then
outstanding, an amount equal to the Total Revolving Loan Commitment at such
time, and (ii) each Letter of Credit shall by its terms terminate (x) in the
case of standby Letters of Credit, on or before the earlier of (A) the date
which occurs 12 months after the date of the issuance thereof (although any
such standby Letter of Credit shall be extendible for successive periods of up
to 12 months, but, in each case, not beyond the tenth Business Day prior to the
Revolving Loan Maturity Date, on terms acceptable to the Issuing Lender) and
(B) ten Business Days prior to the Revolving Loan Maturity Date, and (y) in the
case of trade Letters of Credit, on or before the earlier of (A) the date which
occurs 180 days after the date of issuance thereof and (B) ten days prior to
the Revolving Loan Maturity Date.

3.03.           Letter of Credit Requests; Minimum Stated Amount.

(a)           Whenever the Borrower desires that a Letter of Credit be
issued for its account, the Borrower shall give the Administrative Agent and
the respective Issuing Lender at least five Business Days’ (or such shorter
period as is acceptable to such Issuing Lender) written notice thereof
(including by way of facsimile).  Each
notice shall be in the form of Exhibit C, appropriately completed
(each, a “Letter of Credit Request”).

(b)           The making of each Letter of Credit Request shall be
deemed to be a representation and warranty by the Borrower to the Lenders that
such Letter of Credit may be issued in accordance with, and will not violate
the requirements of, Section 3.02. 
Unless the respective Issuing Lender has received notice from the Borrower,
any other Credit Party or the Required Lenders before it issues a Letter of
Credit that one or more of the conditions specified in Section 6 or 7 are not
then satisfied, or that the issuance of such Letter of Credit would violate
Section 3.02, then such Issuing Lender shall, subject to the terms and
conditions of this Agreement, issue the requested Letter of Credit for the
account of the Borrower in accordance with such Issuing Lender’s usual and
customary practices.  Upon the issuance
of or modification or amendment to any standby Letter of Credit, each Issuing
Lender shall promptly notify the Borrower and the Administrative Agent, in
writing of such issuance, modification or amendment and such notice shall be accompanied
by a copy of such Letter of Credit or the respective modification or amendment
thereto, as the case may be.  Promptly
after receipt of such notice the Administrative Agent shall notify the
Participants, in writing, of such issuance, modification or amendment.  On the first Business Day of each week, each
Issuing Lender shall furnish the Administrative Agent with a written (including
via facsimile) report of the daily aggregate outstandings of trade Letters of
Credit issued by such Issuing Lender for the immediately preceding week.  Notwithstanding anything to the contrary
contained in this Agreement, in the event that a Lender Default exists with
respect to an RL Lender, no Issuing Lender shall be required to issue any
Letter of Credit unless such Issuing Lender has entered into arrangements satisfactory
to it and the Borrower to eliminate such Issuing Lender’s risk with respect to
the participation in Letters of Credit by the Defaulting Lender or Lenders,
including by cash collateralizing such Defaulting Lender’s or Lenders’ RL
Percentage of the Letter of Credit Outstandings.

(c)           The initial Stated Amount of each Letter of Credit shall
not be less than $100,000 or such lesser amount as is acceptable to the
respective Issuing Lender.

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3.04.           Letter of Credit Participations.

(a)           Immediately upon the issuance by an Issuing Lender of any
Letter of Credit, such Issuing Lender shall be deemed to have sold and
transferred to each RL Lender, and each such RL Lender (in its capacity under
this Section 3.04, a “Participant”) shall be deemed irrevocably and
unconditionally to have purchased and received from such Issuing Lender, without
recourse or warranty, an undivided interest and participation, to the extent of
such Participant’s RL Percentage, in such Letter of Credit, each drawing or
payment made thereunder and the obligations of the Borrower under this
Agreement with respect thereto, and any security therefor or guaranty
pertaining thereto.  Upon any change in
the Revolving Loan Commitments or RL Percentages of the Lenders pursuant to
Section 2.12 or 13.04(b), it is hereby agreed that, with respect to all outstanding
Letters of Credit and Unpaid Drawings relating thereto, there shall be an
automatic adjustment to the participations pursuant to this Section 3.04 to
reflect the new RL Percentages of the assignor and assignee Lender, as the case
may be.

(b)           In determining whether to pay under any Letter of Credit,
no Issuing Lender shall have any obligation relative to the other Lenders other
than to confirm that any documents required to be delivered under such Letter
of Credit appear to have been delivered and that they appear to substantially
comply on their face with the requirements of such Letter of Credit.  Any action taken or omitted to be taken by an
Issuing Lender under or in connection with any Letter of Credit issued by it
shall not create for such Issuing Lender any resulting liability to the
Borrower, any other Credit Party, any Lender or any other Person unless such
action is taken or omitted to be taken with gross negligence or willful
misconduct on the part of such Issuing Lender (as determined by a court of
competent jurisdiction in a final and non-appealable decision).

(c)           In the event that an Issuing Lender makes any payment
under any Letter of Credit issued by it and the Borrower shall not have
reimbursed such amount in full to such Issuing Lender pursuant to Section
3.05(a), such Issuing Lender shall promptly notify the Administrative Agent,
which shall promptly notify each Participant of such failure, and each Participant
shall promptly and unconditionally pay to such Issuing Lender the amount of
such Participant’s RL Percentage of such unreimbursed payment in Dollars and in
same day funds.  If the Administrative
Agent so notifies, prior to 12:00 Noon (New York time) on any Business
Day, any Participant required to fund a payment under a Letter of Credit, such
Participant shall make available to the respective Issuing Lender in Dollars
such Participant’s RL Percentage of the amount of such payment on such Business
Day in same day funds.  If and to the
extent such Participant shall not have so made its RL Percentage of the amount
of such payment available to respective Issuing Lender, such Participant agrees
to pay to such Issuing Lender, forthwith on demand such amount, together with
interest thereon, for each day from such date until the date such amount is
paid to such Issuing Lender at the overnight Federal Funds Rate for the first
three days and at the interest rate applicable to Revolving Loans that are
maintained as Base Rate Loans for each day thereafter.  The failure of any Participant to make available
to an Issuing Lender its RL Percentage of any payment under any Letter of
Credit issued by such Issuing Lender shall not relieve any other Participant of
its obligation hereunder to make available to such Issuing Lender its RL
Percentage of any payment under any Letter of Credit on the date required, as
specified above, but no Participant shall be responsible for the failure of any
other

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Participant to make available to such Issuing
Lender such other Participant’s RL Percentage of any such payment.

(d)           Whenever an Issuing Lender receives a payment of a
reimbursement obligation as to which it has received any payments from the
Participants pursuant to clause (c) above, such Issuing Lender shall pay
to each such Participant which has paid its RL Percentage thereof, in Dollars
and in same day funds, an amount equal to such Participant’s share (based upon
the proportionate aggregate amount originally funded by such Participant to the
aggregate amount funded by all Participants) of the principal amount of such
reimbursement obligation and interest thereon accruing after the purchase of
the respective participations.

(e)           Upon the request of any Participant, each Issuing Lender
shall furnish to such Participant copies of any standby Letter of Credit issued
by it and such other documentation as may reasonably be requested by such
Participant.

(f)            The obligations of the Participants to make payments to
each Issuing Lender with respect to Letters of Credit shall be irrevocable and
not subject to any qualification or exception whatsoever and shall be made in
accordance with the terms and conditions of this Agreement under all
circumstances, including any of the following circumstances:

(i)            any
lack of validity or enforceability of this Agreement or any of the other Credit
Documents;

(ii)           the
existence of any claim, setoff, defense or other right which the Borrower or
any of its Subsidiaries may have at any time against a beneficiary named in a
Letter of Credit, any transferee of any Letter of Credit (or any Person for
whom any such transferee may be acting), the Administrative Agent, any
Participant, or any other Person, whether in connection with this Agreement,
any Letter of Credit, the transactions contemplated herein or any unrelated
transactions (including any underlying transaction between the Borrower or any
Subsidiary and the beneficiary named in any such Letter of Credit);

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

(iv)          the
surrender or impairment of any security for the performance or observance of
any of the terms of any of the Credit Documents; or

(v)           the
occurrence of any Default or Event of Default.

3.05.        Agreement to Repay Letter of Credit
Drawings.

(a)           The Borrower agrees to reimburse each Issuing Lender, by
making payment to the Administrative Agent in immediately available funds at
the Payment Office, for any payment or disbursement made by such Issuing Lender
under any Letter of Credit issued by it (each such amount, so paid until
reimbursed, an “Unpaid Drawing”), not later than one Business Day
following receipt by the Borrower of notice of such payment or disbursement (provided
that

 41
 

 

no such notice shall be required to be given
if a Default or an Event of Default under Section 11.05 shall have occurred and
be continuing, in which case the Unpaid Drawing shall be due and payable
immediately without presentment, demand, protest or notice of any kind (all of
which are hereby waived by the Borrower)), with interest on the amount so paid
or disbursed by such Issuing Lender, to the extent not reimbursed prior to
12:00 Noon (New York time) on the date of such payment or disbursement,
from and including the date paid or disbursed to but excluding the date such
Issuing Lender was reimbursed by the Borrower therefor at a rate per annum
equal to the Base Rate in effect from time to time plus the Applicable Margin
as in effect from time to time for Revolving Loans that are maintained as Base
Rate Loans; provided, however, to the extent such amounts are not
reimbursed prior to 12:00 Noon (New York time) on the third Business Day
following the receipt by the Borrower of notice of such payment or disbursement
or following the occurrence of a Default or an Event of Default under Section
11.05, interest shall thereafter accrue on the amounts so paid or disbursed by
such Issuing Lender (and until reimbursed by the Borrower) at a rate per annum
equal to the Base Rate in effect from time to time plus the Applicable Margin
for Revolving Loans that are maintained as Base Rate Loans as in effect from
time to time plus 2%, with such interest to be payable on demand.  Each Issuing Lender shall give the Borrower
prompt written notice of each Drawing under any Letter of Credit issued by it, provided
that the failure to give any such notice shall in no way affect, impair or
diminish the Borrower’s obligations hereunder.

(b)           The obligations of the Borrower under this Section 3.05 to
reimburse each Issuing Lender with respect to drafts, demands and other
presentations for payment under Letters of Credit issued by it (each, a “Drawing”)
(including, in each case, interest thereon) shall be absolute and unconditional
under any and all circumstances and irrespective of any setoff, counterclaim or
defense to payment which the Borrower or any Subsidiary may have or have had
against any Lender (including in its capacity as an Issuing Lender or as a
Participant), including any defense based upon the failure of any drawing under
a Letter of Credit to conform to the terms of the Letter of Credit or any nonapplication
or misapplication by the beneficiary of the proceeds of such Drawing; provided,
however, that the Borrower shall not be obligated to reimburse any Issuing
Lender for any wrongful payment made by such Issuing Lender under a Letter of
Credit issued by it as a result of acts or omissions constituting willful misconduct
or gross negligence on the part of such Issuing Lender (as determined by a
court of competent jurisdiction in a final and non-appealable decision).

3.06.        Increased Costs.  If at any time after the Effective Date, the
introduction of or any change in any applicable law, rule, regulation, order,
guideline or request or in the interpretation or administration thereof by the
NAIC or any governmental authority charged with the interpretation or administration
thereof, or compliance by any Issuing Lender or any Participant with any
request or directive by the NAIC or by any such governmental authority (whether
or not having the force of law), shall either (i) impose, modify or make
applicable any reserve, deposit, capital adequacy or similar requirement
against letters of credit issued by any Issuing Lender or participated in by
any Participant, or (ii) impose on any Issuing Lender or any Participant any
other conditions relating, directly or indirectly, to this Agreement or any
Letter of Credit; and the result of any of the foregoing is to increase the
cost to any Issuing Lender or any Participant of issuing, maintaining or
participating in any Letter of Credit, or reduce the amount of any sum received
or receivable by any Issuing Lender or any Participant hereunder or reduce the
rate of return on its capital with respect to Letters of Credit (except for
changes in the rate of

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tax on, or determined by
reference to, the net income or net profits of such Issuing Lender or such
Participant pursuant to the laws of the jurisdiction in which it is organized
or in which its principal office or applicable lending office is located or any
subdivision thereof or therein), then, upon the delivery of the certificate
referred to below to the Borrower by any Issuing Lender or any Participant (a
copy of which certificate shall be sent by such Issuing Lender or such Participant
to the Administrative Agent), the Borrower agrees to pay to such Issuing Lender
or such Participant such additional amount or amounts as will compensate such
Issuing Lender or such Participant for such increased cost or reduction in the
amount receivable or reduction on the rate of return on its capital.  Any Issuing Lender or any Participant, upon
determining that any additional amounts will be payable pursuant to this
Section 3.06, will give prompt written notice thereof to the Borrower, which
notice shall include a certificate submitted to the Borrower by such Issuing
Lender or such Participant (a copy of which certificate shall be sent by such
Issuing Lender or such Participant to the Administrative Agent), setting forth
in reasonable detail the basis for the calculation of such additional amount or
amounts necessary to compensate such Issuing Lender or such Participant.  The certificate required to be delivered
pursuant to this Section 3.06 shall, absent manifest error, be final and
conclusive and binding on the Borrower.

SECTION 4.                 Commitment
Commission; Fees; Reductions of Revolving Loan Commitment.

4.01.        Fees.

(a)           The Borrower agrees to pay to the Administrative Agent for
distribution to each Non-Defaulting RL Lender a commitment commission (the “Commitment
Commission”) for the period from and including the Effective Date to and
including the Revolving Loan Maturity Date (or such earlier date on which the
Total Revolving Loan Commitment has been terminated) computed at a rate per
annum equal to the Commitment Commission Percentage of the Unutilized Revolving
Loan Commitment of such Non-Defaulting RL Lender as in effect from time to
time.  Accrued Commitment Commission
shall be due and payable quarterly in arrears on each Quarterly Payment Date
and on the date upon which the Total Revolving Loan Commitment is terminated.

(b)           The Borrower agrees to pay to the Administrative Agent for
distribution to each RL Lender (based on each such RL Lender’s respective RL
Percentage) a fee in respect of each Letter of Credit (the “Letter of Credit
Fee”) for the period from and including the date of issuance of such Letter
of Credit to and including the date of termination or expiration of such Letter
of Credit, computed at a rate per annum equal to the Applicable Margin as in
effect from time to time during such period with respect to Revolving Loans that
are maintained as Eurodollar Loans on the daily Stated Amount of each such Letter
of Credit.  Accrued Letter of Credit Fees
shall be due and payable quarterly in arrears on each Quarterly Payment Date
and on the first day on or after the termination of the Total Revolving Loan
Commitment upon which no Letters of Credit remain outstanding.

(c)           The Borrower agrees to pay to each Issuing Lender, for its
own account, a facing fee in respect of each Letter of Credit issued by it (the
“Facing Fee”) for the period from and including the date of issuance of
such Letter of Credit to and including the date of termination or expiration of
such Letter of Credit, computed at a rate per annum equal to 1⁄4 of 1% on the

 43
 

 

daily Stated Amount of such Letter of Credit,
provided that in any event the minimum amount of Facing Fees payable in
any twelve-month period for each Letter of Credit shall be not less than $500,
it being agreed that, on the day of issuance of any Letter of Credit and on
each anniversary thereof prior to the termination or expiration of such Letter
of Credit, if $500 will exceed the amount of Facing Fees that will accrue with
respect to such Letter of Credit for the immediately succeeding twelve-month
period, the full $500 shall be payable on the date of issuance of such Letter
of Credit and on each such anniversary thereof. 
Except as otherwise provided in the proviso to the immediately preceding
sentence, accrued Facing Fees shall be due and payable quarterly in arrears on
each Quarterly Payment Date and upon the first day on or after the termination
of the Total Revolving Loan Commitment upon which no Letters of Credit remain
outstanding.

(d)           The Borrower agrees to pay to each Issuing Lender, for its
own account, upon each payment under, issuance of, or amendment to, any Letter
of Credit issued by it, such amount as shall at the time of such event be the
administrative charge and the reasonable expenses which such Issuing Lender is
generally imposing in connection with such occurrence with respect to letters
of credit.

(e)           The Borrower agrees to pay to the Administrative Agent
such fees as may be agreed to in writing from time to time by the Borrower or
any of its Subsidiaries and the Administrative Agent.

4.02.        Voluntary Termination of Unutilized
Revolving Loan Commitments.

(a)           Upon at least one Business Day’s prior written notice to
the Administrative Agent at the Notice Office (which notice the Administrative
Agent shall promptly transmit to each of the Lenders), the Borrower shall have
the right, at any time or from time to time, without premium or penalty to
terminate the Total Unutilized Revolving Loan Commitment in whole, or reduce it
in part, pursuant to this Section 4.02(a), in an integral multiple of $1.0
million in the case of partial reductions to the Total Unutilized Revolving
Loan Commitment, provided that each such reduction shall apply
proportionately to permanently reduce the Revolving Loan Commitment of each RL
Lender.

(b)           In the event of certain refusals by a Lender to consent to
certain proposed changes, waivers, discharges or terminations with respect to
this Agreement which have been approved by the Required Lenders as (and to the
extent) provided in Section 13.12(b), the Borrower shall have the right,
subject to obtaining the consents required by Section 13.12(b), upon five
Business Days’ prior written notice to the Administrative Agent at its Notice
Office (which notice the Administrative Agent shall promptly transmit to each
of the Lenders), to terminate the entire Revolving Loan Commitment of such
Lender, so long as all Loans, together with accrued and unpaid interest, Fees
and all other amounts, owing to such Lender (including all amounts, if any,
owing pursuant to Section 2.10 but excluding amounts owing in respect of Loans
of any Tranche maintained by such Lender, if such Loans are not being repaid
pursuant to Section 13.12(b)) are repaid concurrently with the effectiveness of
such termination (at which time Schedule I shall be deemed modified to reflect
such changed amounts) and such Lender’s RL Percentage of all outstanding
Letters of Credit is cash collateralized in a manner satisfactory to the Administrative
Agent and the respective Issuing Lenders, and at such time, such Lender shall
no longer constitute a “Lender” for purposes of this Agreement, except with
respect to indemnifications

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under this Agreement (including Sections
2.09, 2.10, 3.06, 5.04, 12.06, 13.01 and 13.06), which shall survive as to such
repaid Lender.

4.03.        Mandatory Reduction of Revolving Loan
Commitments.

(a)           In addition to any other mandatory commitment reductions
pursuant to this Section 4.03, the Total Revolving Loan Commitment shall
terminate in its entirety upon the earlier of (i) the Revolving Loan Maturity
Date and (ii) unless the Required Lenders otherwise agree in writing, the date
on which a Change of Control occurs.

(b)           Each reduction to, or termination of, the Total Revolving
Loan Commitment shall be applied to proportionately reduce or terminate, as the
case may be, the Revolving Loan Commitment of each Lender with a Revolving Loan
Commitment.

SECTION 5.                 Prepayments;
Payments; Taxes.

5.01.        Voluntary Prepayments.  The Borrower shall have the right to prepay
the Loans, without premium or penalty, in whole or in part from time to time on
the following terms and conditions:  (i)
the Borrower shall give the Administrative Agent prior to 12:00 Noon
(New York time) at the Notice Office (x) at least one Business Day’s prior
written notice (or telephonic notice promptly confirmed in writing) of its
intent to prepay Base Rate Loans (or same day notice in the case of a
prepayment of Swingline Loans) and (y) at least three Business Days’ prior
written notice (or telephonic notice promptly confirmed in writing) of its
intent to prepay Eurodollar Loans, which notice (in each case) shall specify
whether Revolving Loans or Swingline Loans shall be prepaid, the amount of such
prepayment and the Types of Loans to be prepaid and, in the case of Eurodollar
Loans, the specific Borrowing or Borrowings pursuant to which such Eurodollar
Loans were made, and which notice the Administrative Agent shall, except in the
case of a prepayment of Swingline Loans, promptly transmit to each of the
Lenders and (ii) each partial prepayment of Revolving Loans pursuant to
this Section 5.01 shall be in an aggregate principal amount of at least $1.0
million (or such lesser amount as is acceptable to the Administrative Agent)
and (z) each partial prepayment of Swingline Loans pursuant to this Section
5.01 shall be in an aggregate principal amount of at least $250,000 (or such
lesser amount as is acceptable to the Administrative Agent in any given case), provided
that if any partial prepayment of Eurodollar Loans made pursuant to any
Borrowing shall reduce the outstanding principal amount of Eurodollar Loans
made pursuant to such Borrowing to an amount less than the Minimum Borrowing
Amount applicable thereto, then such Borrowing may not be continued as a
Borrowing of Eurodollar Loans (and same shall automatically be converted into a
Borrowing of Base Rate Loans) and any election of an Interest Period with
respect thereto given by the Borrower shall have no force or effect and (iii)
each prepayment pursuant to this Section 5.01 in respect of any Loans made
pursuant to a Borrowing shall be applied pro  rata among such
Loans, provided that at the Borrower’s election in connection with any
prepayment of Revolving Loans pursuant to this Section 5.01, such prepayment
shall not, so long as no Default or Event of Default then exists, be applied to
any Revolving Loan of a Defaulting Lender.

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5.02.        Application of Prepayments; Maturity.

(a)           Each amount applied pursuant to Section 5.01 shall be
applied First, to the payment of all expenses due and payable to the
Arrangers and to the Administrative Agent under Section 13.01; Second,
to the payment of all expenses due and payable to the Lenders under Section
13.01; Third, to the payment of interest then due and payable on the
Loans; and Fourth, to the payment of the principal amount of the Loans.

(b)           (i) All then outstanding Swingline Loans shall be
repaid in full on the Swingline Expiry Date, (ii) all other then outstanding
Loans shall be repaid in full on the respective Maturity Date for such Tranche
of Loans, and (iii) unless the Required Lenders otherwise agree in writing, all
then outstanding Loans shall be repaid in full on the date on which a Change of
Control occurs.

5.03.        Method and Place of Payment.  Except as otherwise specifically provided
herein, all payments under this Agreement and under any Note shall be made to
the Administrative Agent for the account of the Lender or Lenders entitled
thereto not later than 3:00 p.m. (New York time) on the date when due and
shall be made in Dollars in immediately available funds at the Payment
Office.  Whenever any payment to be made
hereunder or under any Note shall be stated to be due on a day which is not a
Business Day, the due date thereof shall be extended to the next succeeding Business
Day and, with respect to payments of principal, interest shall be payable at the
applicable rate during such extension.

5.04.        Net Payments.

(a)           Payments free of Indemnifiable Taxes.  All payments by the Borrower hereunder and
under any Note will be made free and clear of, and without deduction or withholding
for, any Indemnifiable Taxes, unless required by applicable law.  If any Indemnifiable Taxes are so levied or
imposed, the Borrower agrees to (i) pay the full amount of such Indemnifiable
Taxes to the appropriate governmental authority, (ii) pay such additional
amounts as necessary so that the net amount actually received by the Lender
under this Agreement or under any Note, after withholding or deduction for or
on account of any Indemnifiable Taxes, will be equal to the amount that the
Lender would have received had no such deduction or withholding been required,
and (iii) furnish to the Administrative Agent evidence of payment by the
Borrower of Indemnifiable Taxes reasonably satisfactory to the Administrative
Agent within 45 days after the date such payment is due under applicable
law.  If any amounts that are payable in
respect of Indemnifiable Taxes pursuant to the preceding sentence are paid by a
Lender, the Borrower agrees to reimburse the Lender, upon the written request
of the Lender, for such Indemnifiable Taxes.

(b)           Documentation. 
Each Foreign Lender agrees to deliver to the Borrower and the
Administrative Agent on or prior to the Effective Date or, in the case of a
Foreign Lender that is an assignee or transferee of an interest under this Agreement
pursuant to Section 2.12 or 13.04(b) (unless the respective Lender was already
a Lender hereunder immediately prior to such assignment or transfer), on the
date of such assignment or transfer to such Lender, (i) two accurate and
complete original signed copies of IRS Form W-8ECI or Form W-8BEN (with respect
to a complete exemption under an income tax treaty) (or successor forms)
certifying such Lender’s entitlement as of such date to a complete exemption
from United States withholding tax

 46
 

 

with respect to payments to be made under
this Agreement and under any Note, (ii) if the Foreign Lender is not a “bank”
within the meaning of Section 881(c)(3)(A) of the Code and cannot deliver
either IRS Form W-8ECI or Form W-8BEN or successor forms pursuant to clause (i)
above, (x) a certificate substantially in the form of Exhibit D
(any such certificate, a “Section 5.04(b)(ii) Certificate”) and
(y) two accurate and complete original signed copies of IRS Form W-8BEN
(with respect to the “portfolio interest exemption”) (or successor form) certifying
such Lender’s entitlement as of such date to a complete exemption from United
States withholding tax with respect to payments of interest to be made under
this Agreement and under any Note, or (iii) two accurate and complete
original signed copies of IRS Form W-8IMY (together with the form and
certificates described above in clauses (i) and (ii)), as required.  Each Lender that is not a Foreign Lender
agrees to deliver to the Borrower and the Administrative Agent on or prior to
the Effective Date or, in the case of a Lender that is an assignee or
transferee of an interest under this Agreement pursuant to Section 2.12 or
13.04(b) (unless the respective Lender was already a Lender hereunder
immediately prior to such assignment or transfer), on the date of such assignment
or transfer to such Lender two accurate and complete original signed copies of
IRS Form W-9 establishing that the Lender is not subject to U.S. backup
withholding tax.  In addition, each
Lender agrees that when a lapse in time or change in circumstances renders its
previous certification obsolete or inaccurate in any material respect, or upon
reasonable request by the Borrower or Administrative Agent, such Lender will
(A) deliver to the Borrower and the Administrative Agent two new accurate
and complete original signed copies of the applicable certification under this
Section 5.04(b) and such other forms as may be required to confirm or establish
the entitlement of such Lender to a continued exemption from or reduction in
United States withholding tax, or (B) immediately notify the Borrower and
the Administrative Agent of its inability to deliver any such certification, in
which case such Lender shall not be required to deliver any such certification
pursuant to this Section 5.04(b).

(c)           Refunds.  If
the Administrative Agent or any Lender determines, in its sole discretion, that
it has received a refund of any Indemnifiable Taxes with respect to which the
Borrower has paid amounts pursuant to Section 5.04(a), it shall pay over such
refund to the Borrower, net of all out-of-pocket expenses of the Administrative
Agent and such Lender provided, however, that the Borrower agrees
to repay such amount to the Administrative Agent or Lender, as the case may be,
together with any applicable interest and penalties, if the Administrative
Agent or Lender is required to repay such refund to such taxing authority.  This paragraph shall not be construed to
require the Administrative Agent or any Lender to make available its tax returns
(or any other information relating to its taxes which it deems confidential) to
the Borrower.

SECTION 6.                 Conditions
Precedent to Credit Events on the Initial Borrowing Date.

The obligation of each Lender to make Loans, and the
obligation of each Issuing Lender to issue Letters of Credit, on the Initial
Borrowing Date, is subject at the time of the making of such Loans or the
issuance of such Letters of Credit to the satisfaction of the following
conditions:

6.01.        Effective Date; Notes.  On or prior to the Initial Borrowing Date, (i)
the Effective Date shall have occurred as provided in Section 13.10 and (ii) if
any Lender has so requested, there shall have been delivered to the
Administrative Agent for the account of each of

 47
 

 

the Lenders that has
requested same a Revolving Note executed by the Borrower and, if requested by
the Swingline Lender, the Swingline Note executed by the Borrower, in each case
in the amount, maturity and as otherwise provided herein.

6.02.        Opinions of Counsel.  On the Initial Borrowing Date, the Administrative
Agent shall have received (i) from Latham & Watkins LLP, special counsel to
the Borrower, an opinion addressed to the Administrative Agent, the Collateral
Agent and the Lenders and dated the Initial Borrowing Date substantially in the
form attached as Exhibit E-1, (ii) from Larkin Hoffman Daly &
Lindgren, Ltd., special Minnesota counsel to the Borrower, an opinion,
addressed to the Administrative Agent, the Collateral Agent and the Lenders and
dated the Initial Borrowing Date substantially in the form attached as Exhibit E-2
and (iii) from Jones Vargas, Nevada counsel to the Borrower, an opinion
addressed to the Administrative Agent, the Collateral Agent and the Lenders and
dated the Initial Borrowing Date substantially in the form attached as Exhibit E-3.

6.03.        Company Documents; Proceedings; etc.

(a)           On the Initial Borrowing Date, the Administrative Agent
shall have received a certificate from each Credit Party, dated the Initial
Borrowing Date, signed by an Authorized Officer of such Credit Party, and attested
to by the Secretary or any Assistant Secretary of such Credit Party, in the
form of Exhibit F with appropriate insertions, together with copies
of the certificate or articles of incorporation and by-laws (or other
equivalent organizational documents), as applicable, of each Credit Party and
the resolutions of each Credit Party referred to in such certificate, and each
of the foregoing shall be in form and substance reasonably acceptable to the
Administrative Agent.

(b)           On the Initial Borrowing Date, the Credit Documents shall
be reasonably satisfactory in form and substance to the Administrative Agent,
and the Administrative Agent shall have received all information and copies of
all documents and papers, including records of Company proceedings, governmental
approvals, good standing certificates and bring-down telegrams or facsimiles,
if any, which the Administrative Agent reasonably may have requested in connection
therewith, such documents and papers where appropriate to be certified by
proper Company or governmental authorities, all of which shall be, in form and
substance, reasonably acceptable to the Administrative Agent.

6.04.        Adverse Change, Approvals.

(a)           Since October 31, 2005, nothing shall have occurred (and
neither the Administrative Agent nor any Lender shall have become aware of any
facts or conditions not previously known) which has had, or would reasonably be
expected to have, a Material Adverse Effect.

(b)           On the Initial Borrowing Date, all necessary material
governmental (domestic and foreign) and third party approvals and/or consents
in connection with the Transaction shall have been obtained and remain in
effect.  On the Initial Borrowing Date,
there shall not exist any judgment, order, injunction or other restraint issued
or filed or a hearing seeking injunctive relief or other restraint pending or
notified prohibiting or imposing materially adverse conditions

 48
 

 

upon the transactions contemplated by the
Credit Documents or otherwise referred to herein or therein.

(c)           On or prior to the Initial Borrowing Date, the
Administrative Agent shall have received evidence satisfactory to the
Administrative Agent to the effect that approval of the Loans and the Credit
Documents by the Mississippi Gaming Commission is not required.

6.05.        Litigation.  On the Initial Borrowing Date, there shall be
no actions, suits or proceedings pending or threatened (i) with respect to this
Agreement or any other Document, or (ii) which has had, or would reasonably be
expected to have, a Material Adverse Effect.

6.06.        Guaranty.  On the Initial Borrowing Date, each Guarantor
shall have duly authorized, executed and delivered the Guaranty in the form of Exhibit G
(as amended, modified or supplemented from time to time, the “Guaranty”),
and the Guaranty of each Guarantor shall be in full force and effect.

6.07.        Security Agreement.  On the Initial Borrowing Date, each Credit
Party shall have duly authorized, executed and delivered the Security Agreement
in the form of Exhibit H (as amended, modified, restated and/or supplemented
from time to time, the “Security Agreement”) covering all of such Credit
Party’s Security Agreement Collateral, together with:

(i)            proper
financing statements (Form UCC-1 or the equivalent) fully executed for filing
under the UCC or other appropriate filing offices of each jurisdiction as may
be necessary or, in the reasonable opinion of the Collateral Agent, desirable,
to perfect the security interests purported to be created by the Security
Agreement;

(ii)           certified
copies of requests for information or copies (Form UCC-11), or equivalent
reports as of a recent date, listing all effective financing statements that
name the Borrower or any of its Subsidiaries as debtor and that are filed in
the jurisdictions referred to in clause (i) above and in such other
jurisdictions in which Collateral is located on the Initial Borrowing Date,
together with copies of such other financing statements that name the Borrower
or any of its Subsidiaries as debtor (none of which shall cover any of the
Collateral except (x) to the extent evidencing Permitted Liens or (y) those in
respect of which the Collateral Agent shall have received termination
statements (Form UCC-3) or such other termination statements as shall be
required by local law fully executed for filing);

(iii)          evidence
of the completion of all other recordings and filings of, or with respect to,
the Security Agreement as may be necessary or, in the reasonable opinion of the
Collateral Agent, desirable, to perfect the security interests intended to be
created by the Security Agreement; and

(iv)          evidence
that all other actions necessary or, in the reasonable opinion of the
Collateral Agent, desirable to perfect and protect the security interests
purported to be created by the Security Agreement have been taken, and the
Security Agreement shall be in full force and effect.

 49
 

 

6.08.        Financial Statements; Projections.  On or prior to the Initial Borrowing Date,
the Administrative Agent shall have received the Projections and true and correct
copies of the historical financial statements referred to in Sections 8.05(a)
and (d), which historical financial statements and Projections shall be in form
and substance reasonably satisfactory to the Administrative Agent and the
Required Lenders.

6.09.        Solvency Certificate; Insurance
Certificates, etc.  On the Effective
Date, the Administrative Agent shall have received:

(i)            a
solvency certificate from the chief financial officer of the Borrower in the
form of Exhibit I; and

(ii)           certificates
of insurance complying with the requirements of Section 9.03 for the business
and properties of the Borrower and its Subsidiaries, in form and substance
reasonably satisfactory to the Administrative Agent and naming the Collateral
Agent as an additional insured and/or as loss payee, and stating that such insurance
shall not be canceled without at least 30 days’ prior written notice by the
insurer to the Collateral Agent.

6.10.        Fees, etc.  On the Initial Borrowing Date, the Borrower
shall have paid to the Arrangers, the Administrative Agent and each Lender all
costs, fees and expenses (including reasonable documented legal fees and
expenses) and other compensation contemplated hereby payable to the Arrangers,
the Administrative Agent or such Lender to the extent then due.

6.11.        Officer’s Certificate.  On the Effective Date, the Administrative
Agent shall have received a certificate, dated the Initial Borrowing Date and
signed on behalf of the Borrower by an Authorized Officer of the Borrower,
certifying on behalf of the Borrower that all of the conditions in Sections
6.04, 6.05 and 7.01 have been satisfied on such date.

6.12.        Consummation of the Refinancing.

(a)           On or prior to the Effective Date and concurrently with
the incurrence of Loans and the use of such Loans on such date, all Indebtedness
of the Borrower and its Subsidiaries under the Existing Bridge Credit Agreement
shall have been repaid in full, together with all fees and other amounts owing
thereon and all commitments under the Existing Bridge Credit Agreement shall
have been terminated.

(b)           On the Initial Borrowing Date and concurrently with the
incurrence of Loans on such date, all security interests in respect of, and
Liens securing, the Indebtedness under the Existing Bridge Credit Agreement
created pursuant to the security documentation relating to the Existing Bridge
Credit Agreement shall have been terminated and released, and the Administrative
Agent shall have received all such releases as may have been requested by the Administrative
Agent, which releases shall be in form and substance satisfactory to the
Administrative Agent.  Without limiting
the foregoing, there shall have been delivered to the Administrative Agent
proper termination statements (Form UCC-3 or the appropriate equivalent) for
filing under the UCC or equivalent statute or regulation of each jurisdiction
where a financing statement or application for registration (Form UCC-1 or the
appropriate equivalent) was filed with respect to the Borrower or any of its
Subsidiaries in connection with the security interests created with

 50

 

respect to the Existing Bridge Credit
Agreement, to secure the obligations under the Existing Bridge Credit
Agreement, all of which shall be in form and substance reasonably satisfactory
to the Administrative Agent.

6.13.           Patriot Act Compliance.  Administrative Agent and the Lenders shall
have received all documentation and other information reasonably requested by
them under the applicable “know your customer” and anti-money laundering rules
and regulations, including without limitation the Patriot Act.

SECTION 7.                 Conditions
Precedent to All Credit Events.

The obligation of each Lender to make Loans (including
Loans made on the Initial Borrowing Date), and the obligation of each Issuing
Lender to issue Letters of Credit (including Letters of Credit issued on the
Initial Borrowing Date), is subject, at the time of each such Credit Event
(except as hereinafter indicated), to the satisfaction of the following
conditions:

7.01.           No Default; Representations and Warranties.  At the time of each such Credit Event and
also after giving effect thereto (i) there shall exist no Default or Event of Default
that is continuing and (ii) all representations and warranties contained herein
and in the other Credit Documents shall be true and correct in all material
respects with the same effect as though such representations and warranties had
been made on the date of such Credit Event (it being understood and agreed that
any representation or warranty which by its terms is made as of a specified
date shall be required to be true and correct in all material respects only as
of such specified date).

7.02.        Notice
of Borrowing; Letter of Credit Request.

(a)           Prior to the making of each Loan (other than a Swingline
Loan or a Revolving Loan made pursuant to a Mandatory Borrowing), the Administrative
Agent shall have received a Notice of Borrowing meeting the requirements of
Section 2.02(a).  Prior to the making of
each Swingline Loan, the Swingline Lender shall have received the notice
referred to in Section 2.02(b)(i).

(b)           Prior to the issuance of each Letter of Credit, the
Administrative Agent and the respective Issuing Lender shall have received a
Letter of Credit Request meeting the requirements of Section 3.03(a).

The acceptance of the benefits of each Credit Event
shall constitute a representation and warranty by the Borrower to the
Administrative Agent and each of the Lenders that all the conditions specified
in Section 6 (with respect to Credit Events on the Initial Borrowing Date) and
in this Section 7 (with respect to Credit Events on or after the Initial Borrowing
Date) and applicable to such Credit Event are satisfied as of that time.  All of the Notes, certificates, legal
opinions and other documents and papers referred to in this Section 7, unless
otherwise specified, shall be delivered to the Administrative Agent at the
Notice Office or as otherwise agreed in writing for the account of each of the
Lenders and, except for the Notes, in sufficient counterparts or copies for
each of the Lenders.

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SECTION 8.                 Representations,
Warranties and Agreements.

In order to induce the Lenders to enter into this
Agreement and to make the Loans, and issue (or participate in) the Letters of
Credit as provided herein, the Borrower makes the following representations,
warranties and agreements, in each case after giving effect to the Transaction,
all of which shall survive the execution and delivery of this Agreement and the
Notes and the making of the Loans and the issuance of the Letters of Credit,
with the occurrence of each Credit Event on or after the Initial Borrowing Date
being deemed to constitute a representation and warranty that the matters
specified in this Section 8 are true and correct in all material respects on
and as of the Initial Borrowing Date and on the date of each such other Credit
Event (it being understood and agreed that any representation or warranty which
by its terms is made as of a specified date shall be required to be true and correct
in all material respects only as of such specified date).

8.01.        Company
Status.  The Borrower has been duly
incorporated and is validly existing as a corporation in good standing under
the laws of the State of Minnesota, with the corporate power and authority to
own or lease its properties and conduct the business in which it is engaged and
presently proposes to engage; each of the Subsidiaries of the Borrower has been
duly incorporated and is validly existing as a corporation in good standing
under the laws of the jurisdiction of its organization, with the corporate
power and authority to own or lease its properties and conduct the business in
which it is engaged and presently proposes to engage; the Borrower and each of
the Subsidiaries are duly qualified to transact business in all jurisdictions
in which the conduct of their business requires such qualification and where
the failure to be so qualified would, individually or in the aggregate,
reasonably be expected to result in a Material Adverse Effect on the Borrower
and the Subsidiaries taken as a whole; the outstanding shares of capital stock
of each of the Subsidiaries have been duly authorized and validly issued, are
fully paid and non-assessable and are owned by the Borrower or another
Subsidiary free and clear of all liens, encumbrances and equities and claims;
and no options, warrants or other rights to purchase, agreements or other obligations
to issue or other rights to convert any obligations into shares of capital
stock in the Subsidiaries are outstanding.

8.02.        Power
and Authority.  Each Credit Party has
the Company power and authority to execute, deliver and perform the terms and
provisions of each of the Credit Documents to which it is party and has taken
all necessary Company action to authorize the execution, delivery and
performance by it of each of such Credit Documents.  Each Credit Party has duly executed and
delivered each of the Credit Documents to which it is party, and each of such
Credit Documents constitutes its legal, valid and binding obligation
enforceable in accordance with its terms, except to the extent that the
enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws generally affecting creditors’
rights and by equitable principles (regardless of whether enforcement is sought
in equity or at law).

8.03.        No
Violation.  Neither the Borrower nor
any of the Subsidiaries is or, with the giving of notice or lapse of time or
both, will be, in violation of or in default under (i) its amended
Articles of Incorporation or Bylaws or (ii) any material agreement, lease,
contract, indenture or other instrument or obligation to which it is a party or
by which it, or any of its properties, is bound and, solely with respect to
this clause (ii), which violation or default would, individually

 52
 

 

or in the aggregate, reasonably be expected
to result in a Material Adverse Effect; the execution and delivery of the
Credit Documents and the consummation of the transactions herein and therein contemplated
and the fulfillment of the terms hereof and thereof will not conflict with or
result in a breach of any of the terms or provisions of, or constitute a
default under, any material indenture, mortgage, deed of trust or other
agreement or instrument to which the Borrower or any Subsidiary is a party or
by which the Borrower or any Subsidiary or any of their respective properties
is bound, except for such conflicts, breaches or defaults as would not,
individually or in the aggregate, reasonably be expected to result in a
Material Adverse Effect, or of the amended Articles of Incorporation or Bylaws
of the Borrower or any law, order, rule or regulation, judgment, order, writ or
decree applicable to the Borrower or any Subsidiary of any court or of any
government, regulatory body or administrative agency or other governmental body
having jurisdiction over the Borrower or any of the Subsidiaries, except for
such conflicts that both (x) would not reasonably be expected to have a
Material Adverse Effect or (y) are not currently known to the Borrower.

8.04.        Approvals.  No material order, consent, approval,
license, authorization or validation of, or filing, recording or registration
with (except for those that have otherwise been obtained or made on or prior to
the Borrowing Date and which remain in full force and effect on the Initial Borrowing
Date and filings which are necessary to perfect the security interests created
under the Security Documents, which filings will be made within ten days
following the Initial Borrowing Date), or material exemption by, any
governmental or public body or authority, or any subdivision thereof, is
required to be obtained or made by, or on behalf of, any Credit Party to
authorize, or is required to be obtained or made by, or on behalf of, any
Credit Party in connection with, (i) the execution, delivery and performance of
any Credit Document or (ii) the legality, validity, binding effect or
enforceability of any such Credit Document, except for notice filings concerning
this Agreement and the Loans required to be delivered after the Effective Date
to the Gaming authorities in each jurisdiction in which a Credit Party is
licensed in the ordinary course of business.

8.05.        Financial
Statements; Financial Condition; Undisclosed Liabilities; Projections.

(a)           (i) The audited consolidated balance sheet of the Borrower
and its Subsidiaries at October 31, 2005 and 2004 and the related
consolidated statements of income and cash flows and changes in shareholders’
equity of the Borrower and its Subsidiaries for the fiscal years ended on such
dates, in each case included in its annual report filed on Form 10-K, present
fairly in all material respects the consolidated financial position of the
Borrower at the date of said financial statements and the results for the
respective periods covered thereby and (ii) the unaudited consolidated balance
sheet of the Borrower and its Subsidiaries at July 1, 2006 and the related
consolidated statements of income and cash flows and changes in shareholders’
equity of the Borrower and its Subsidiaries for the nine-month period ended on
such date, in each case included in its quarterly report filed on September 11,
2006 on Form 10-Q/A, present fairly in all material respects the consolidated
financial position of the Borrower at the date of said financial statements and
the results for the period covered thereby, subject to normal year-end adjustments
and the absence of footnotes.  All such
financial statements have been prepared in accordance with GAAP consistently
applied except to the extent provided in the notes to said financial statements.

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(b)           Except as fully disclosed in the financial statements of
the Borrower included in its quarterly report filed on September 11, 2006 on
Form 10-Q/A, and except for the Indebtedness incurred under this Agreement,
there were as of the Initial Borrowing Date no liabilities or obligations with
respect to the Borrower or any of its Subsidiaries of any nature whatsoever
(whether absolute, accrued, contingent or otherwise and whether or not due)
which, either individually or in the aggregate, could reasonably be expected to
be material to the Borrower or any of its Subsidiaries.

(c)           The Projections were prepared in good faith based upon
assumptions believed by the Borrower to be reasonable at the time made, it
being understood that actual results may vary materially therefrom.

(d)           Both before and after giving effect to the Transaction,
since October 31, 2005, nothing has occurred that has had, or would
reasonably be expected to have, either individually or in the aggregate, a Material
Adverse Effect.

8.06.        Litigation.  There are no actions, suits or proceedings
pending or, to the knowledge of the Borrower, threatened (i) that are
adverse to the Borrower and its Subsidiaries with respect to the Transaction or
any Credit Document or (ii) that has had, or would reasonably be expected to
have, either individually or in the aggregate, a Material Adverse Effect.

8.07.        True
and Complete Disclosure.  The
representations and warranties of the Borrower contained in any Credit Document
for the benefit of the Administrative Agent and any Lender by or on behalf of
the Borrower or any of its Subsidiaries for use in connection with the
Transaction are true and accurate in all material respects on the date as of
which such information is dated or certified and not incomplete by omitting to
state any fact necessary to make such information (taken as a whole) not
misleading in any material respect at such time in light of the circumstances
under which such information was provided, it being understood and agreed that
for purposes of this Section 8.07, such factual information shall not include
the Projections.

8.08.        Use
of Proceeds; Margin Regulations.

(a)           All proceeds of the Loans will be used (i) for the working
capital and general corporate purposes (including for Investments, stock
repurchases and acquisitions permitted hereunder) of the Borrower and its
Subsidiaries, (ii) to repay existing debt, including payment on the Initial
Borrowing Date of all amounts outstanding under the Existing Bridge Credit Agreement
and termination of the Existing Bridge Credit Agreement and (iii) to pay fees
and expenses incurred in connection with the Transaction.

(b)           No part of any Credit Event (or the proceeds thereof) will
be used to purchase or carry any Margin Stock or to extend credit for the
purpose of purchasing or carrying any Margin Stock.  Neither the making of any Loan nor the use of
the proceeds thereof nor the occurrence of any other Credit Event will violate
or be inconsistent with the provisions of Regulation T, U or X of the Board of
Governors of the Federal Reserve System.

8.09.        Tax
Returns and Payments.  Except as
would not, individually or in the aggregate, reasonably be expected to result
in a Material Adverse Effect, the Borrower and the Subsidiaries have filed all
Federal, State, local and foreign Tax returns that have been required to

 54
 

 

be filed and have paid all Taxes indicated by such returns and all
assessments received by them or any of them to the extent that  such Taxes have become due and payable (except
Taxes that are being contested in good faith by appropriate proceedings and for
which adequate reserves have been established in accordance with GAAP); all
Taxes not yet due and payable have been adequately provided for in accordance
with GAAP, and the Borrower does not know of any actual or proposed additional
material Tax assessments.

8.10.        Security
Documents.  The provisions of the
Security Agreement are effective to create in favor of the Collateral Agent for
the benefit of the Secured Parties a legal, valid and enforceable security interest
in all right, title and interest of the Credit Parties in the Security
Agreement Collateral described therein, and the Collateral Agent, for the
benefit of the Secured Parties, has (or within 10 days following the Initial
Borrowing Date will have) a fully perfected security interest in all right,
title and interest in all of the Security Agreement Collateral described
therein, subject to no other Liens other than Permitted Liens.  The recordation of (x) the Patent Security
Agreement and (y) the Trademark Security Agreement in the respective form
attached to the Security Agreement, in each case in the United States Patent
and Trademark Office, together with filings on Form UCC-1 made pursuant to the
Security Agreement, will create, as may be perfected by such filings and
recordation, a perfected security interest in the United States trademarks and
patents covered by the Security Agreement, and the recordation of the Copyright
Security Agreement in the form attached to the Security Agreement with the
United States Copyright Office, together with filings on Form UCC-1 made
pursuant to the Security Agreement, will create, as may be perfected by such
filings and recordation, a perfected security interest in the United States
copyrights covered by the Security Agreement.

8.11.        Compliance
with ERISA.

(a)           Except as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, (i) no ERISA Event
has occurred or is reasonably expected to occur and (ii) each ERISA Entity is
in compliance in all material respects with the presently applicable provisions
of ERISA and the Code with respect to each Employee Benefit Plan.  The present value of all accumulated benefit
obligations of all underfunded Pension Plans (based on the assumptions used for
purposes of Statement of Financial Accounting Standards No. 87) did not, as of
the date of the most recent financial statements reflecting such amounts,
exceed the fair market value of the assets of all such underfunded Pension
Plans by an amount that would reasonably be expected to have a Material Adverse
Effect.

(b)           Except as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, (i) the Borrower and
each Subsidiary and each of the Foreign Plans are in compliance in all material
respects with all applicable laws and regulations with respect to the Foreign
Plans and (ii) the terms of the Foreign Plans, and all required contributions
have been made to the Foreign Plans.

8.12.        Properties.  Except as would not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect, the Borrower
and the Subsidiaries have good and marketable title to all of the properties
and assets reflected in the consolidated financial statements hereinabove
described and material to the Borrower’s business or operations, subject to no
lien, mortgage, pledge, charge or encumbrance of any kind except for Permitted
Liens; the

 55
 

 

Borrower and the Subsidiaries occupy their leased properties under
valid and binding leases.  No Mortgage encumbers
improved Real Property that is located in an area that has been identified by
the Secretary of Housing and Urban Development as an area having special flood
hazards within the meaning of the National Flood Insurance Act of 1968 unless
flood insurance available under such Act has been obtained in accordance with
Section 9.03.

8.13.        [Reserved]

8.14.        Subsidiaries.  On and as of the Initial Borrowing Date, the
Borrower has no Subsidiaries other than those Subsidiaries set forth in the
ownership chart attached as Schedule II. 
Schedule II correctly sets forth, as of the Initial Borrowing Date, the
percentage ownership (direct and indirect) of the Borrower in each class of
capital stock or other Equity Interests of each of its Subsidiaries and also
identifies the direct owner thereof.  All
outstanding shares of Equity Interests of each Subsidiary of the Borrower have
been duly and validly issued, are fully paid and non-assessable and have been
issued free of preemptive rights.  No
Subsidiary of the Borrower has outstanding any securities convertible into or
exchangeable for its Equity Interests or outstanding any right to subscribe for
or to purchase, or any options or warrants for the purchase of, or any
agreement providing for the issuance (contingent or otherwise) of or any calls,
commitments or claims of any character relating to, its Equity Interests or any
stock appreciation or similar rights.

8.15.        Compliance
with Statutes, etc.  Each of the
Borrower and each of its Subsidiaries is in compliance with all applicable
statutes, regulations and orders of, and all applicable restrictions imposed
by, all governmental bodies, domestic or foreign, in respect of the conduct of
its business and the ownership of its property (including applicable statutes,
regulations, orders and restrictions relating to environmental standards and
controls), except such noncompliances as would not, either individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

8.16.        Investment
Company Act.  Neither the Borrower
nor any of its Subsidiaries is an “investment company” or a company “controlled”
by an “investment company,” within the meaning of the Investment Company Act of
1940, as amended.

8.17.        Environmental
Matters.  The Borrower and the
Subsidiaries and their respective businesses, operations, properties and
facilities, are in compliance with and are not subject to any actual or
potential liability under Environmental Law, except to the extent that any such
failure to comply or actual or potential liability would not, individually or
in the aggregate, reasonably be expected to have in a Material Adverse Effect.

8.18.        Employment
and Labor Relations.  Neither the
Borrower nor any of its Subsidiaries is engaged in any unfair labor practice
that would reasonably be expected, either individually or in the aggregate, to
have a Material Adverse Effect.  There is
(i) no unfair labor practice complaint pending against the Borrower or any of
its Subsidiaries or, to the knowledge of the Borrower, threatened against any
of them, before the National Labor Relations Board, and no grievance or
arbitration proceeding arising out of or under any collective bargaining agreement
is so pending against the Borrower or any of its Subsidiaries or, to the
knowledge of the Borrower, threatened against any of them, (ii) no strike,
labor dispute, slowdown or stoppage

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pending against the Borrower or any of its Subsidiaries or, to the
knowledge of the Borrower, threatened against the Borrower or any of its Subsidiaries,
(iii) no union representation question exists with respect to the
employees of the Borrower or any of its Subsidiaries, (iv) no equal employment
opportunity charges or other claims of employment discrimination are pending
or, to the Borrower’s knowledge, threatened against the Borrower or any of its
Subsidiaries and (v) no wage and hour department investigation has been made of
the Borrower or any of its Subsidiaries, except (with respect to any matter
specified in clauses (i) – (iv) above, either individually or in the aggregate)
such as would not reasonably be expected to have a Material Adverse Effect.

8.19.        Intellectual
Property, etc.  (A) The Borrower,
each of the Subsidiaries and each of their respective directors and executive
officers hold all material licenses, certificates and permits from governmental
authorities, including gaming regulatory authorities, which are necessary to
the conduct of their businesses; (B) except where the failure to do so would
not, either individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect, the Borrower and the Subsidiaries each own or possess
the right to use all patents, patent rights, trademarks, trade names, service
marks, service names, copyrights, license rights, know-how (including trade
secrets and other unpatented and unpatentable proprietary or confidential
information, systems or procedures) and other intellectual property rights (“Intellectual
Property”) necessary to carry on their business in all material respects;
neither the Borrower nor any of the Subsidiaries has infringed, and, except as
described in the sections of the Borrower’s 2005 Form 10-K entitled “Item
3.  Legal Proceedings” and Schedule VII,
none of the Borrower or the Subsidiaries have received notice of conflict with,
any Intellectual Property of any other person or entity; (C) except where
the failure to do so would not, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, the Borrower has
taken all reasonable steps necessary to secure interests in such Intellectual
Property from its contractors; (D) except as described in the sections of
the Borrower’s 2005 Form 10-K entitled “Item 1. 
Business—Intellectual Property,” there are no outstanding options,
licenses or agreements of any kind relating to the Intellectual Property of the
Borrower that are material to the Borrower and the Subsidiaries taken as a
whole; (E) except as in the sections of the Borrower’s 2005 Form 10-K
entitled “Item 1.  Business—Intellectual
Property,” the Borrower is not a party to or bound by any options, licenses or
agreements with respect to the Intellectual Property of any other person or
entity that are material to the Borrower and the Subsidiaries taken as a whole;
(F) except where the failure to do so would not, either individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect, none
of the technology employed by the Borrower has been obtained or is being used by
the Borrower in violation of any contractual obligation binding on the Borrower
or any of its officers, directors or employees or otherwise in violation of the
rights of any persons; (G) except as described in the sections of the Borrower’s
2005 Form 10-K entitled “Item 3.  Legal
Proceedings,” or Schedule VII, the Borrower has not received any written or
oral communications alleging that the Borrower has violated, infringed or
conflicted with, or, by conducting its business as set forth in its 2005 Form 10-K,
would violate, infringe or conflict with, any of the Intellectual Property of
any other person or entity, except those which would not, either individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect;
and (H) except as described in the sections of the Borrower’s 2005 Form 10-K
entitled “Item 3.  Legal Proceedings,” or
Schedule VII, the Borrower knows of no infringement by others of Intellectual
Property owned by or licensed to the Borrower, expect that which would not,
either individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

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8.20.        Indebtedness.  The sections of the Borrower’s 2005 Form 10-K
entitled “Item 7.  Management’s
Discussion and Analysis of Financial Condition and Results of
Operations—Liquidity and Capital Resources—Long-Term Liabilities” set forth a
true and complete list of all Indebtedness (including Contingent Obligations
but not including Intercompany Loans) of the Borrower and its Subsidiaries as
of October 31, 2005 which is to remain outstanding after giving effect to the
Transaction, in each case showing the aggregate principal amount thereof and
the name of the respective borrower and any Credit Party or any of its Subsidiaries
which directly or indirectly guarantees such debt.  No other Indebtedness has been incurred by
the Borrower or its Subsidiaries since October 31, 2005, except for
Indebtedness incurred for borrowed money in connection with the Transaction.

8.21.           Insurance. 
The Borrower and each of the Subsidiaries carry, or are covered by,
insurance in such amounts and covering such risks as is adequate for the
conduct of their respective businesses and the value of their respective
properties.

8.22.           Foreign Assets Control Regulations, etc.  Neither the making of the Loans to, or
issuance of a Letter of Credit on behalf of, the Borrower nor its use of the
proceeds thereof will violate in any material respect the Trading with the
Enemy Act, as amended, or any of the foreign assets control regulations of the
United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended)
or any enabling legislation or executive order relating thereto.  Without limiting the foregoing, neither the
Borrower nor any of its Subsidiaries or Affiliates (a) is or will become a
Person whose property or interests in property are blocked pursuant to Section
1 of Executive Order 13224 of September 23, 2001 Blocking Property and
Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support
Terrorism (66 Fed.  Reg.  49079 (2001)) or (b) to its knowledge engages
or will engage in any dealings or transactions, or be otherwise associated,
with any such Person.  Company and its
Subsidiaries and Affiliates are in compliance, in all material respects, with
the Patriot Act).

SECTION 9.                 Affirmative
Covenants.

The Borrower hereby covenants and agrees that on and
after the Effective Date and until the Total Revolving Loan Commitment and all
Letters of Credit have terminated and the Loans, Notes and Unpaid Drawings (in
each case, together with interest thereon), Fees and all other Obligations
(other than any indemnities described in Section 13.13 which are not then due
and payable) incurred hereunder and under the other Credit Documents, are paid
in full:

9.01.        Information
Covenants.  The Borrower will furnish
to each Lender:

(a)           Quarterly Financial Statements.  Within (x) 60 days after the close of
each of the quarterly accounting periods ending January 31, 2007,
April 30, 2007, and July 31, 2007, and (y) 45 days after the
close of each of any of the subsequent of the first three quarterly accounting
periods in any other fiscal year of the Borrower, (i) the consolidated balance
sheet of the Borrower and its Subsidiaries as at the end of such quarterly
accounting period and the related consolidated statements of income and
retained earnings and statement of cash flows for such quarterly accounting
period and for the elapsed portion of the fiscal year ended with the last day
of such quarterly accounting period, in each case setting forth comparative
figures for the corresponding quarterly accounting period in the prior fiscal
year, all of which shall be certified

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by the chief financial officer
of the Borrower that they fairly present in all material respects in accordance
with GAAP the financial condition of the Borrower and its Subsidiaries as of
the dates indicated and the results of their operations for the periods
indicated, subject to normal year-end audit adjustments and the absence of
footnotes, (ii) to the extent any Permitted Acquisition was made during
such quarterly accounting period involving Aggregate Consideration of
$10.0 million or more, calculations with respect to the financial
covenants contained in Sections 10.08 and 10.09 for the applicable Calculation
Period on a Pro Forma Basis as if the applicable Permitted Acquisition (as well
as all other Permitted Acquisitions theretofore consummated after the first day
of such Calculation Period) had occurred on the first day of such Calculation
Period, and such calculations shall show that such that the financial covenants
in Sections 10.08 and 10.09 would have been complied with if the Permitted
Acquisition had occurred on the first day of such Calculation Period; and (iii)
management’s discussion and analysis of the important operational and financial
developments during such quarterly accounting period.

(b)           Annual Financial Statements.  No later than the earlier of (x) in the case
of the fiscal year ending October 31, 2006, 105 days after the end of such
fiscal year and (y) in the case of any other fiscal year, 90 days after
the close of such fiscal year, (i) the consolidated balance sheet of the
Borrower and its Subsidiaries as at the end of such fiscal year and the related
consolidated statements of income and retained earnings and statement of cash
flows for such fiscal year setting forth comparative figures for the preceding
fiscal year and certified by Deloitte & Touche LLP or other “Big 4”
Accounting Firm or other independent certified public accountants of recognized
national standing reasonably acceptable to the Administrative Agent together,
to the extent reasonably available to the Borrower, with a report of such
accounting firm stating that in the course of its regular audit of the
financial statements of the Borrower and its Subsidiaries, which audit was
conducted in accordance with generally accepted auditing standards, such
accounting firm obtained no knowledge of any Default or an Event of Default
relating to financial or accounting matters which has occurred and is
continuing or, if in the opinion of such accounting firm such a Default or an
Event of Default has occurred and is continuing, a statement as to the nature
thereof, and (ii) management’s discussion and analysis of the important operational
and financial developments during such fiscal year.

(c)           Budgets.  No later than 90 days following the first day
of each fiscal year of the Borrower, a budget in form reasonably satisfactory
to the Administrative Agent (including budgeted statements of income, sources
and uses of cash and balance sheets for the Borrower and its Subsidiaries on a
consolidated basis) for each of the twelve months of such fiscal year.

(d)           Officer’s Certificates.  At the time of the delivery of the financial
statements provided for in Sections 9.01(a) and (b), a compliance certificate
from the chief financial officer of Borrower in the form of Exhibit J certifying on behalf of Borrower that, to
such officer’s knowledge after due inquiry, no Default or Event of Default has
occurred and is continuing or, if any Default or Event of Default has occurred
and is continuing, specifying the nature and extent thereof, which certificate
shall (i) set forth in reasonable detail the calculations required to establish
whether the Borrower and its Subsidiaries were in compliance with the
provisions of Sections 10.08 and 10.09 at the end of such fiscal quarter or
year, as the case may be, (ii) if delivered with the financial statements
required by Section 9.01(a) or (b), set forth in reasonable detail the
amount of (and the calculations required to establish the amount of) Excess
Cash Flow, and (iii) certify that there have been no changes to the
Perfection Certificate since the Effective

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Date or, if later, since the
date of the most recent certificate delivered pursuant to this Section 9.01(d),
or if there have been any such changes, a list in reasonable detail of such
changes (but, in each case with respect to this clause (ii), only to the extent
that such changes are required to be reported to the Collateral Agent pursuant
to the terms of such Security Documents) and whether Borrower and the other
Credit Parties have otherwise taken all actions required to be taken by them
pursuant to such Security Documents in connections with any such changes.

(e)           Notice of Default, Litigation and
Material Adverse Effect.  Promptly,
and in any event within three Business Days after any Authorized Officer of the Borrower or any
of its Subsidiaries obtains knowledge thereof, notice of (i) the occurrence of
any event which constitutes a Default or an Event of Default, (ii) any
litigation or governmental investigation or proceeding pending against the Borrower or any
of its Subsidiaries (x) which, either individually or in the aggregate, has
had, or would reasonably be expected to have, a Material Adverse Effect or (y)
with respect to any Document, or (iii) any other event, change or circumstance
that, either individually or in the aggregate, has had, or would reasonably be
expected to have, a Material Adverse Effect.

(f)            Other Reports and Filings.  Promptly after the filing or delivery
thereof, copies of all financial information, proxy materials and reports, if
any, which the
Borrower or any of its Subsidiaries shall publicly file with the Securities
and Exchange Commission or any successor thereto (the “SEC”) or deliver
to holders (or any trustee, agent or other representative therefor) of its
material Indebtedness pursuant to the terms of the documentation governing such
Indebtedness.

(g)           Environmental Matters.  Promptly
after any officer of the Borrower or any of its Subsidiaries obtains
knowledge thereof, notice of one or more of the following environmental matters
to the extent that such environmental matters, either individually or when aggregated
with all other such environmental matters, would reasonably be expected to have
a Material Adverse Effect:

(i)            any
pending or threatened Environmental Claim against the Borrower or any condition
or occurrence that could reasonably be expected to form the basis of an Environmental
Claim against the
Borrower or any of its Subsidiaries or any Real Property owned, leased
or operated by the
Borrower or any of its Subsidiaries; and

(ii)           the
taking of any removal or remedial action in response to the actual or alleged
presence of any Hazardous Material on any Real Property owned, leased or operated
by the
Borrower or any of its Subsidiaries as required by any Environmental Law
or any governmental or other administrative agency.

All such notices shall
describe in reasonable detail the nature of the claim, investigation,
condition, occurrence or removal or remedial action and the Borrower’s or
such Subsidiary’s response thereto.

(h)           Patriot
Act, etc.: with reasonable promptness, information to confirm compliance
with the representations contained in subsection 8.22 reasonably requested by
any Lender through Administrative Agent.

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(i)            Other Information.  From time to time, such other information or
documents (financial or otherwise) with respect to the Borrower or any of its
Subsidiaries as the Administrative Agent may reasonably request.

9.02.        Books, Records and
Inspections.  The Borrower will, and
will cause each of its Subsidiaries to, maintain all financial records in
accordance with GAAP.  The Borrower will,
and will cause each of its Subsidiaries to, permit officers and designated
representatives of the Administrative Agent or any Lender to visit and inspect,
under guidance of officers of the Borrower or its Subsidiaries, any of the
properties of the Borrower or its Subsidiaries, and to examine the books of
account of the Borrower or its Subsidiaries and discuss the affairs, finances
and accounts of the Borrower or such Subsidiary with, and be advised as to the
same by, its and their officers and independent accountants, all upon
reasonable prior notice.  Such visits and
inspections shall be limited to no more than one per calendar year for all the
Lenders so long as no Event of Default has occurred and is continuing.

9.03.        Maintenance of
Property; Insurance.  The Borrower
will, and will cause each of its Subsidiaries to, (i) keep all property
necessary to the business of the Borrower and its Subsidiaries in good working
order and condition, ordinary wear and tear excepted and subject to the
occurrence of casualty events, provided that nothing in this clause (i)
shall prevent the Borrower or any of its Subsidiaries from discontinuing the
use, operation or maintenance of such properties or disposing of them if (x)
such discontinuance or disposal is, in the reasonable judgment of the Borrower
or such Subsidiary, desirable in the conduct of business and (y) such
discontinuance or disposal, individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Effect, and (ii) maintain
with financially sound and reputable insurance companies insurance on all such
property and against all such risks as is consistent and in accordance with
industry practice for companies similarly situated owning similar properties
and engaged in similar businesses as the Borrower and its Subsidiaries.  With respect to each Mortgaged Property, the
Borrower and each of the Subsidiaries shall obtain flood insurance in such
total amount as the Administrative Agent may from time to time require, if at
any time the area in which any improvements located on any Mortgaged Property
is designated a “flood hazard area” in any Flood Insurance Rate Map published
by the Federal Emergency Management Agency (or any successor agency), and
otherwise comply with the National Flood Insurance Program as set forth in the
Flood Disaster Protection Act of 1973, as amended from time to time.

9.04.        Existence; Franchises.  The Borrower will, and will cause each of its
Subsidiaries to, do or cause to be done all things necessary to preserve and
keep in full force and effect its existence; provided, however,
that nothing in this Section 9.04 shall prevent (i) sales of assets and other
transactions by the Borrower or any of its Subsidiaries in accordance with
Section 10.02 or (ii) the withdrawal by the Borrower or any of its Subsidiaries
of its qualification as a foreign Company in any jurisdiction if such withdrawal
would not, either individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect.  Except
where the failure to do so would not, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, the Borrower will,
and will cause each of its Subsidiaries to, preserve and keep in full force and
effect its material rights, franchises, licenses, permits, copyrights,
trademarks and patents.

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9.05.        Compliance with
Statutes, etc.  The Borrower will,
and will cause each of its Subsidiaries to, comply with all applicable
statutes, regulations and orders of, and all applicable restrictions imposed
by, all governmental bodies, domestic or foreign, in respect of the conduct of
its business and the ownership of its property (including applicable statutes,
regulations, orders and restrictions relating to environmental standards and
controls), except such noncompliances as would not, either individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

9.06.        Compliance with
Environmental Laws.

(a)           The Borrower will
comply, and will cause each of its Subsidiaries to comply, with Environmental
Law and permits applicable to, or required by, the ownership, lease or use of
its Real Property now or hereafter owned, leased or operated by the Borrower or
any of its Subsidiaries, except such noncompliances as would not, either
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect, and will promptly pay or cause to be paid all costs and
expenses incurred in connection with such compliance, and will keep or cause to
be kept all such Real Property free and clear of any Liens imposed pursuant to
such Environmental Law.

(b)           (i) After the receipt
by the Administrative Agent or the Lender of any notice of the type described
in Section 9.01(g), (ii) at any time that the Borrower or any of its
Subsidiaries are not in compliance with Section 9.06(a) or (iii) in the event
that the Administrative Agent or the Lender has exercised any of the remedies
pursuant to the last paragraph of Section 9 the Borrower will (in each case)
provide, at the sole expense of the Borrower and at the reasonable request of
the Administrative Agent, a Phase I environmental site assessment report concerning
any Real Property owned, leased or operated by the Borrower or any of its
Subsidiaries, prepared by an environmental consulting firm reasonably approved
by the Administrative Agent, addressing the presence or absence of Hazardous
Material and the potential cost of any removal or remedial action in connection
with such Hazardous Material on such Real Property.  If the Borrower fails to provide the same
within 45 days after such request was made (or such longer period as may be
reasonably necessary under the circumstances to complete such assessment in a
diligent manner), the Administrative Agent may order the same, the cost of
which shall be borne by the Borrower, and the Borrower shall hereby grant to
the Administrative Agent and the Lender and their respective agents access to
such Real Property and specifically grant the Administrative Agent and the
Lender an irrevocable non-exclusive license, subject to the rights of tenants,
to undertake such an assessment at any reasonable time during normal business
hours upon reasonable notice to the Borrower, all at the sole expense of the
Borrower.

9.07.        ERISA.  The Borrower will deliver to the Lender,
promptly, upon the occurrence of any ERISA Event that, alone or together with
any other ERISA Events that have occurred, could reasonably be expected to
result in liability of the Borrower and the Subsidiaries in an aggregate amount
exceeding $1,000,000, a written notice specifying the nature thereof, what
action the Borrower, its Subsidiaries or other ERISA Entity have taken, are
taking or propose to take with respect thereto, and, when known, any action
taken or threatened by the IRS, Department of Labor, PBGC or Multiemployer Plan
sponsor with respect thereto.  The Borrower
will deliver to the Lender, upon request by the Administrative Agent, copies
of: (i) each Schedule B (Actuarial Information) to the annual report (Form
5500 Series) filed by any ERISA Entity 

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with the IRS with respect
to each Pension Plan; (ii) the most recent actuarial valuation report for
each Pension Plan; (iii) all notices received by any ERISA Entity from a
Multiemployer Plan sponsor or any governmental agency concerning an ERISA
Event; and (iv) such other documents or governmental reports or filings
relating to any Employee Benefit Plan as the Administrative Agent shall
reasonably request.

9.08.        Performance of
Obligations.  The Borrower will, and
will cause each of its Subsidiaries to, perform all of its obligations under
the terms of each mortgage, indenture, security agreement, loan agreement or
credit agreement and each other agreement, contract or instrument by which it
is bound, except such non-performances as would not, either individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

9.09.        Payment of Taxes and
Obligations.  The Borrower will pay
and discharge, and will cause each of its Subsidiaries to pay and discharge,
all Taxes imposed upon it or upon its income or profits or upon any properties
belonging to it, prior to the date on which penalties attach thereto, and all
lawful claims which, if unpaid, might become a Lien or charge upon any
properties of the Borrower or any of its Subsidiaries not otherwise permitted
under Section 10.01(i); provided that neither the Borrower nor any of
its Subsidiaries shall be required to pay any such Tax or claim that is being
contested in good faith and by proper proceedings if it has maintained adequate
reserves with respect thereto in accordance with GAAP.

9.10.        Use of Proceeds.  The Borrower will use the proceeds of the
Loans only as provided in Section 8.08.

9.11.        Additional Security;
Further Assurances; etc.

(a)           The Borrower will, and
will cause each other Credit Party to, grant to the Collateral Agent for the
benefit of the Secured Parties (x) security interests in such assets of
the Borrower and such other Credit Party as are not covered by the original
Security Documents and as may be reasonably requested from time to time by the
Administrative Agent or the Required Lenders; provided that such Credit
Parties shall only be required to deliver such documentation and grant security
interests in such assets as they would have been required to deliver if such
Credit Party were a Credit Party on the Effective Date and (y) Mortgages in any
Real Property of the Borrower and such other Credit Party acquired after the
Effective Date; provided Real Property having a Fair Market Value of not
more than $12.0 million in the aggregate shall be excepted from the
requirements of this clause (y) (any such additional Mortgages, collectively,
the “Additional Security Documents”). 
All such security interests and Mortgages shall be granted pursuant to
documentation reasonably satisfactory in form and substance to the Collateral
Agent and shall constitute valid and enforceable perfected security interests,
hypothecations and Mortgages superior to and prior to the rights of all third
Persons and enforceable against third parties and subject to no other Liens
except for Permitted Liens or, in the case of Real Property, the Permitted
Encumbrances.  The Additional Security
Documents or instruments related thereto shall have been duly recorded or filed
in such manner and in such places as are required by law to establish, perfect,
preserve and protect the Liens in favor of the Collateral Agent required to be
granted pursuant to the Additional Security Documents and all taxes, fees and
other charges payable in connection therewith shall have been paid in full.

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(b)           The Borrower will, and
will cause each of the other Credit Parties that are Subsidiaries of the
Borrower to, at the expense of the Borrower, make, execute, endorse,
acknowledge, file and/or deliver to the Collateral Agent from time to time such
vouchers, invoices, schedules, confirmatory assignments, conveyances, financing
statements, transfer endorsements, powers of attorney, certificates, Surveys,
Title Policies, reports, landlord waivers, bailee agreements and other
assurances or instruments and take such further steps relating to the
Collateral covered by any of the Security Documents as the Collateral Agent may
reasonably require.  Furthermore, the
Borrower will, and will cause the other Credit Parties that are Subsidiaries of
the Borrower to, deliver to the Collateral Agent such opinions of counsel,
title insurance and other related documents as may be reasonably requested by
the Administrative Agent to assure itself that this Section 9.11 has been
complied with.

(c)           The Collateral Agent
shall have received for any Real Property constituting Collateral:

(i)            a Mortgage encumbering each Mortgaged
Property in favor of the Collateral Agent, for the benefit of the Secured
Parties, duly executed and acknowledged by each Credit Party that is the owner
of or holder of any interest in such Mortgaged Property, and otherwise in form
for recording in the recording office of each applicable political subdivision
where each such Mortgaged Property is situated, together with such
certificates, affidavits, questionnaires or returns as shall be required in
connection with the recording or filing thereof to create a lien under
applicable requirements of law, and such financing statements and any other
instruments necessary to grant a mortgage lien under the laws of any applicable
jurisdiction, all of which shall be in form and substance reasonably
satisfactory to the Collateral Agent;

(ii)           with respect to each Mortgaged Property,
such consents, approvals, amendments, supplements, estoppels, tenant
subordination agreements or other instruments as necessary to consummate the
Transaction or as shall reasonably be deemed necessary by the Collateral Agent
in order for the owner or holder of the fee constituting such Mortgaged
Property to grant the Lien contemplated by the Mortgage with respect to such
Mortgaged Property;

(iii)          with respect to each Mortgage, a policy of
title insurance (or marked-up title insurance commitment having the effect of a
policy of title insurance) insuring the Lien of such Mortgage as a valid first
mortgage Lien on the Mortgaged Property and fixtures described therein in the amount
equal to not less than 105% of the Fair Market Value of such Mortgaged Property
and fixtures, which policy (or such marked-up commitment) (each, a “Title
Policy”) shall (A) be issued by the Title Company, (B) to the
extent necessary, include such reinsurance arrangements (with provisions for
direct access, if necessary) as shall be reasonably acceptable to the
Collateral Agent, (C) contain a “tie-in” or “cluster” endorsement, if
available under applicable law (i.e., policies which insure against
losses regardless of location or allocated value of the insured property up to
a stated maximum coverage amount), and (D) have been supplemented by such
endorsements (or where such endorsements are not available, opinions of special
counsel, architects or other professionals reasonably acceptable to the
Collateral Agent) as shall be reasonably requested by the Collateral Agent
(including endorsements on matters relating to 

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usury, first loss, last dollar, zoning, contiguity, revolving credit,
doing business, non-imputation, public road access, survey, variable rate,
environmental lien, subdivision, mortgage recording tax, separate tax lot,
revolving credit, and so-called comprehensive coverage over covenants and
restrictions but all such endorsements only if available at commercially
reasonable rates and applicable);

(iv)          with respect to each Mortgaged Property, such
affidavits, certificates, information (including financial data) and
instruments of indemnification (including a so-called “gap” indemnification) as
shall be required to induce the Title Company to issue the Title Policy/ies and
endorsements contemplated above;

(v)           evidence reasonably acceptable to the
Collateral Agent of payment by the Borrower of all Title Policy premiums,
search and examination charges, escrow charges and related charges, mortgage
recording taxes, fees, charges, costs and expenses required for the recording
of the Mortgages and issuance of the Title Policies referred to above;

(vi)          with respect to each Mortgaged Property,
copies of all Leases in which Borrower or any Subsidiary holds the lessor’s
interest or other agreements relating to possessory interests, if any.  To the extent any of the foregoing affect any
Mortgaged Property, Borrower shall use commercially reasonable efforts, (but
shall not be required) to ensure that such agreement shall be subordinate to
the Lien of the Mortgage to be recorded against such Mortgaged Property, either
expressly by its terms or pursuant to a subordination, non-disturbance and
attornment agreement, and shall otherwise be acceptable to the Collateral
Agent;

(vii)         Surveys with respect to each Mortgaged
Property; and

(viii)        a completed Federal Emergency Management Agency
Standard Flood Hazard Determination with respect to each Mortgaged Property.

(d)           If the Administrative
Agent or the Required Lenders reasonably determine that they are required by
law or regulation to have appraisals prepared in respect of any Real Property
of the Borrower and its Subsidiaries constituting Collateral, the Borrower will,
at its own expense, provide to the Administrative Agent appraisals which
satisfy the applicable requirements of the Real Estate Appraisal Reform
Amendments of the Financial Institution Reform, Recovery and Enforcement Act of
1989, as amended, and which shall otherwise be in form and substance reasonably
satisfactory to the Administrative Agent.

(e)           The Borrower agrees
that each action required by clauses (a) through (c) of this Section 9.11 shall
be completed as soon as possible, but in no event later than 90 days after such
action is requested to be taken by the Administrative Agent or the Required
Lenders; provided that, in no event will the Borrower or any of its
Subsidiaries be required to take any action, other than using its best efforts,
to obtain consents from third parties with respect to its compliance with this
Section 9.11.

(f)            To the extent such
items have not been delivered as of the Effective Date, the Borrower shall use
its commercially reasonable efforts to deliver to the Administrative Agent 

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the stock certificates identified on Schedule
VIII as promptly as practible following the Effective Date.

9.12.        Additional Subsidiaries.  If any Credit Party acquires or creates a
Wholly-Owned Domestic Subsidiary that is not an Immaterial Subsidiary after the
Effective Date, then the Credit Party will give at least five Business Days’
notice of the acquisition or creation of such Wholly-Owned Domestic Subsidiary
to the Administrative Agent, and such Wholly-Owned Domestic Subsidiary shall
execute a counterpart of the Guaranty within five Business Days after becoming
a Wholly-Owned Domestic Subsidiary.  In
addition, each new Wholly-Owned Domestic Subsidiary that is required to execute
a counterpart of the Guaranty shall execute and deliver, or cause to be
executed and delivered to the Administrative Agent, all other relevant
documentation (including the Security Agreement and opinions of counsel) of the
type described in Section 8 as such new Wholly-Owned Domestic Subsidiary
would have had to deliver if such new Wholly-Owned Domestic Subsidiary were a
Credit Party on the Borrowing Date.

9.13.        Permitted Acquisitions.

(a)           Subject to the
provisions of this Section 9.13 and the requirements contained in the
definition of Permitted Acquisition, the Borrower and each Wholly-Owned
Domestic Subsidiary of the Borrower which is a Guarantor may from time to time
effect Permitted Acquisitions, so long as (in each case except to the extent
the Required Lenders otherwise specifically agree in writing in the case of a specific
Permitted Acquisition):  (i) no Default
or Event of Default shall have occurred and be continuing at the time of the
consummation of the proposed Permitted Acquisition or immediately after giving
effect thereto; (ii) to the extent any such Permitted Acquisition involves
Aggregate Consideration of $10.0 million or more, the Borrower shall have given
to the Administrative Agent and the Lenders at least 10 Business Days’ prior
written notice of any Permitted Acquisition (or such shorter period of time as
may be reasonably acceptable to the Administrative Agent), which notice shall
describe in reasonable detail the principal terms and conditions of such
Permitted Acquisition; (iii) to the extent any such Permitted Acquisition
involves Aggregate Consideration of $10.0 million or more, the Borrower shall
certify that the financial covenants in Sections 10.08 and 10.09 would have
been complied with if the Permitted Acquisition had occurred on the first day
of such Calculation Period; (iv) to the extent any such Permitted Acquisition
involves Aggregate Consideration of $10.0 million or more, all representations
and warranties contained herein and in the other Credit Documents shall be true
and correct in all material respects with the same effect as though such representations
and warranties had been made on and as of the date of such Permitted
Acquisition (both before and after giving effect thereto), unless stated to
relate to a specific earlier date, in which case such representations and
warranties shall be true and correct in all material respects as of such
earlier date; (v) the Aggregate Consideration payable for the proposed
Permitted Acquisition, when added to the Aggregate Consideration paid or
payable for all other Permitted Acquisitions theretofore consummated during the
then fiscal year of the Borrower and any contingent purchase price, earn-out,
non-compete and other similar obligations of the Borrower and its Subsidiaries
relating to any Permitted Acquisition actually paid in such fiscal year, does not
exceed the Permitted Acquisition Basket Amount for such fiscal year; and (vi)
to the extent any such Permitted Acquisition involves Aggregate Consideration
of $10.0 million or more, the Borrower shall have delivered to the
Administrative Agent and each Lender a certificate executed by its 

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chief financial officer, certifying to the
best of such officer’s knowledge, compliance with the requirements of preceding
clauses (i) through (v), inclusive, and containing the calculations (in
reasonable detail) required by preceding clauses (iii) and (v).

(b)           At the time of each Permitted Acquisition
involving the creation or acquisition of a Subsidiary, or the acquisition of
capital stock or other Equity Interest of any Person, the capital stock or
other Equity Interests thereof created or acquired in connection with such
Permitted Acquisition shall be pledged for the benefit of the Secured Parties
pursuant to (and to the extent required by) the Security Documents.

(c)           The Borrower will cause each Subsidiary
which is formed to effect, or is acquired pursuant to, a Permitted Acquisition
to comply with, and to execute and deliver all of the documentation as and to
the extent required by Section 9.11, to the reasonable satisfaction of the
Administrative Agent.

The consummation
of each Permitted Acquisition shall be deemed to be a representation and
warranty by the Borrower that the certifications pursuant to this Section 9.13
are true and correct and that all conditions thereto have been satisfied and
that same is permitted in accordance with the terms of this Agreement, which
representation and warranty shall be deemed to be a representation and warranty
for all purposes hereunder, including Sections 8 and 11.

SECTION 10.               Negative Covenants.

The Borrower
hereby covenants and agrees that on and after the Effective Date and until the
Total Revolving Loan Commitment and all Letters of Credit have terminated and
the Loans, Notes and Unpaid Drawings (in each case, together with interest
thereon), Fees and all other Obligations (other than any indemnities described
in Section 13.13 which are not then due and payable) incurred hereunder and
under the other Credit Documents, are paid in full:

10.01.      Liens.  The Borrower will not, and will not permit
any of its Subsidiaries to, create, incur, assume or suffer to exist any Lien
upon or with respect to any property or assets (real or personal, tangible or
intangible) of the Borrower or any of its Subsidiaries, whether now owned or
hereafter acquired, or sell any such property or assets subject to an
understanding or agreement, contingent or otherwise, to repurchase such
property or assets (including sales of accounts receivable with recourse to the
Borrower or any of its Subsidiaries), or assign any right to receive income or
permit the filing of any financing statement under the UCC or any other similar
notice of Lien under any similar recording or notice statute; provided
that in no event shall the provisions of this Section 10.01 apply to the
capital stock of the Borrower, and provided  further that the
provisions of this Section 10.01 shall not prevent the creation, incurrence,
assumption or existence of the following (Liens described below are herein
referred to as “Permitted Liens”):

(i)            inchoate Liens for Taxes not yet due and
payable or Liens for Taxes being contested in good faith and by appropriate
proceedings for which, if applicable, adequate reserves have been established
in accordance with GAAP;

(ii)           Liens in respect of property or assets of
the Borrower or any of its Subsidiaries imposed by law, which were incurred in
the ordinary course of business and do 

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not secure Indebtedness for borrowed money, such as carriers’,
warehousemen’s, materialmen’s and mechanics’ liens and other similar Liens
arising in the ordinary course of business;

(iii)          Liens in existence on the Effective Date
which are listed, and the property subject thereto described, in Schedule IV,
and any renewals, replacements and extensions of such Liens, provided
that (x) the aggregate principal amount of the Indebtedness, if any, secured by
such Liens does not increase from that amount outstanding at the time of any
such renewal, replacement or extension (plus unpaid, accrued interest and
premiums thereon and underwriting discounts, fees, commissions and expenses)
and (y) any such renewal, replacement or extension does not encumber any
additional assets or properties of the Borrower or any of its Subsidiaries;

(iv)          Liens created pursuant to the Security
Documents;

(v)           licenses, sublicenses, leases or subleases
granted to other Persons not materially interfering with the conduct of the
business of the Borrower or any of its Subsidiaries;

(vi)          Liens upon assets of the Borrower or any of
its Subsidiaries subject to Capitalized Lease Obligations to the extent such
Capitalized Lease Obligations are permitted by Section 10.04(iv), provided
that (x) such Liens only serve to secure the payment of Indebtedness arising
under such Capitalized Lease Obligation and (y) the Lien encumbering the asset
giving rise to the Capitalized Lease Obligation does not encumber any other
asset of the Borrower or any Subsidiary of the Borrower;

(vii)         Liens placed upon equipment, machinery or
other property or improvements acquired after the Effective Date (or, in the
case of improvements, constructed after the Effective Date) and used in the
ordinary course of business of the Borrower or any of its Subsidiaries and
placed within 60 days of the acquisition thereof by the Borrower or such
Subsidiary to secure Indebtedness incurred to pay all or a portion of the
purchase price thereof or to secure Indebtedness incurred solely for the
purpose of financing the acquisition of any such equipment or machinery or
extensions, renewals or replacements of any of the foregoing for the same or a
lesser amount, provided that (x) the Indebtedness secured by such Liens
is permitted by Section 10.04(iv) and (y) in all events, the Lien encumbering
the equipment or machinery so acquired does not encumber any other asset of the
Borrower or its Subsidiaries;

(viii)        zoning restrictions, municipal ordinances,
building codes, easements, rights-of-way, restrictions, encroachments and other
similar charges or encumbrances, and minor title deficiencies, in each case not
securing Indebtedness and not materially interfering with the conduct of the
business of the Borrower or any of its Subsidiaries;

(ix)           Liens arising from precautionary UCC
financing statement filings regarding operating leases entered into in the
ordinary course of business;

(x)            Liens arising from judgments, decrees or
attachments (or securing of appeal bonds with respect thereto) in circumstances
not constituting an Event of Default;

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(xi)           statutory and common law landlords’ liens
under leases or subleases to which the Borrower or any of its Subsidiaries is a
party;

(xii)          Liens (other than Liens imposed under ERISA)
incurred in the ordinary course of business in connection with workers’
compensation claims, unemployment insurance and social security benefits and
Liens securing the performance of bids, tenders, leases and contracts in the
ordinary course of business, statutory obligations, surety bonds, performance
bonds and other obligations of a like nature incurred in the ordinary course of
business and consistent with past practice (exclusive of obligations in respect
of the payment for borrowed money), provided that the aggregate amount
of all cash and the Fair Market Value of all other property subject to all
Liens permitted by this clause (xii) shall not at any time exceed $3.0 million;

(xiii)         Liens arising out of any conditional sale,
title retention, consignment or other similar arrangements for the sale of
goods entered into by the Borrower or any of its Subsidiaries in the ordinary
course of business to the extent such Liens do not attach to any assets other
than the goods subject to such arrangements;

(xiv)        Liens (x) incurred in the ordinary course of
business in connection with the purchase or shipping of goods or assets (or the
related assets and proceeds thereof), which Liens are in favor of the seller or
shipper of such goods or assets and only attach to such goods or assets, and
(y) in favor of customs and revenue authorities arising as a matter of law to
secure payment of customs duties in connection with the importation of goods;

(xv)         Liens arising under Article 2 or Article 4 of
the UCC and bankers’ Liens, rights of setoff and other similar Liens existing
solely with respect to cash and Cash Equivalents on deposit in one or more
accounts maintained by the Borrower or any Subsidiary, in each case granted in
the ordinary course of business in favor of the bank or banks with which such
accounts are maintained, securing amounts owing to such bank or banks with
respect to cash management and operating account arrangements;

(xvi)        Liens on assets of Foreign Subsidiaries
securing Indebtedness permitted to be incurred by such Foreign Subsidiaries
pursuant to Section 10.04(x);

(xvii)       licenses of intellectual property granted in a
manner consistent with past practice;

(xviii)      Liens incurred in the ordinary course of business
and consistent with past practice to secure Indebtedness of the Borrower and
its Subsidiaries with respect to bonds required in connection with the
enforcement of rights or claims of the Borrower or any of its Subsidiaries;

(xix)         (a) any Lien existing on an asset (other than
Equity Interests of one or more Subsidiaries) of a Person at the time such
Person becomes a Subsidiary of the Borrower, or (b) any Lien existing on
any asset (other than Equity Interests of one or more Subsidiaries) prior to
the acquisition thereof by the Borrower or a Subsidiary of the Borrower, in
each of clauses (a) and (b) not created in contemplation of such event and that

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do not secure obligations in excess of $25.0 million in the aggregate
for all such Liens at any time;

(xx)          Liens on (a) insurance policies and the
proceeds thereof securing the financing of the premiums with respect thereto
permitted under Section 10.04(xvi), (b) incurred premiums, dividends
and rebates and other identifiable proceeds therefrom which may become payable
under insurance policies and loss payments which reduce the incurred premiums
on such insurance policies, (c) rights which may arise under state
insurance guarantee funds relating to any such insurance policy and
(d) pledges or deposits of cash and Cash Equivalents securing deductibles,
self-insurance, co-payment, c o-insurance, retentions or similar obligations to
providers of property, casualty or liability insurance in the ordinary course
of business; and

(xxi)         additional Liens of the Borrower or any
Subsidiary of the Borrower not otherwise permitted by this Section 10.01 that
do not secure obligations in excess of $15.0 million in the aggregate for all
such Liens at any time.

10.02.      Consolidation, Merger,
Purchase or Sale of Assets, etc.  The
Borrower will not, and will not permit any of its Subsidiaries to, wind up,
liquidate or dissolve its affairs or enter into any partnership, joint venture,
or transaction of merger or consolidation, or convey, sell, lease or otherwise
dispose of all or any part of its property or assets (including without
limitation sales of capital stock and Equity Interests in Subsidiaries) (other
than sales of inventory in the ordinary course of business), or enter into any
sale-leaseback transactions in which the Borrower or any Subsidiary is the
obligor, or purchase or otherwise acquire (in one or a series of related
transactions) any part of the property or assets (other than purchases or other
acquisitions of inventory, materials and equipment in the ordinary course of
business) of any Person, except that:

(i)            the Borrower and its Subsidiaries may sell,
convey or otherwise dispose of obsolete, worn-out or surplus property in the
ordinary course of business;

(ii)           Investments may be made to the extent
permitted by Section 10.05, Liens may be incurred to the extent permitted by
Section 10.01, and Dividends may be paid to the extent permitted by Section
10.03;

(iii)          the Borrower and its Subsidiaries may sell
assets (other than the capital stock or other Equity Interests of any
Wholly-Owned Subsidiary, unless all of the capital stock or other Equity
Interests of such Wholly-Owned Subsidiary are sold in accordance with this
clause (iii)), so long as (w) no Default or Event of Default then exists or
would result therefrom, (x) each such sale is in an arm’s-length
transaction and the Borrower or the respective Subsidiary receives at least
Fair Market Value, (y) either such sale constitutes a Permitted Asset Swap
or at least 75% of the consideration received by the Borrower or such
Subsidiary consists solely of cash or Cash Equivalents and is paid at the time
of the closing of such sale, and (z) the aggregate amount of the proceeds
received from all assets sold pursuant to this clause (iii) does not
exceed $25.0 million per transaction or series of related transactions and
$75.0 million in the aggregate; provided that the Borrower and its
Subsidiaries may sell assets pursuant to this paragraph (iii) where the

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proceeds of such asset sale or series of related asset sales do not
exceed $2.0 million without complying with the preceding clauses (x) and
(y);

(iv)          each of the Borrower and its Subsidiaries may
sell or discount, in each case without recourse and in the ordinary course of
business, accounts receivable arising in the ordinary course of business, but
only in connection with the compromise or collection thereof and not as part of
any financing transaction;

(v)           each of the Borrower and its Subsidiaries
may grant licenses, sublicenses, leases or subleases to other Persons not
materially interfering with the conduct of the business of the Borrower or any
of its Subsidiaries, in each case so long as no such grant otherwise affects
the Collateral Agent’s security interest in the asset or property subject
thereto;

(vi)          the Borrower or any Subsidiary of the
Borrower may convey, lease, license, sell or otherwise transfer all or any part
of its business, properties and assets to the Borrower or to any Subsidiary, so
long as any security interests granted to the Collateral Agent for the benefit
of the Secured Parties pursuant to the Security Documents in the assets so
transferred shall remain in full force and effect and perfected (to at least
the same extent as in effect immediately prior to such transfer) and all
actions required to maintain said perfected status have been taken; provided
that any conveyance, lease, license, sale or transfer made by a Credit Party to
any Subsidiary that is not a Credit Party pursuant to this clause (vi) shall be
for consideration that is equal to the Fair Market Value of the business,
property or assets conveyed, leased, licensed, sold or transferred;

(vii)         any Subsidiary of the Borrower may merge or
consolidate with and into, or be dissolved or liquidated into, the Borrower or
any Guarantor, so long as (i) the Borrower or such Guarantor is the surviving
or continuing corporation of any such merger or consolidation and (ii) any
security interests granted to the Collateral Agent for the benefit of the
Secured Parties pursuant to the Security Documents in the assets of such
Subsidiary shall remain in full force and effect and perfected (to at least the
same extent as in effect immediately prior to such merger, consolidation,
dissolution or liquidation) and all actions required to maintain said perfected
status have been taken;

(viii)        any Subsidiary of the Borrower that is not a
Guarantor may be merged, consolidated or amalgamated with and into, or be
dissolved or liquidated into, or transfer any of its assets to, any Subsidiary
that is not a Guarantor of the Borrower;

(ix)           the Borrower and its Subsidiaries may sell,
convey or otherwise dispose of cash and Cash Equivalents in the ordinary course
of business, in each case for cash at Fair Market Value;

(x)            any Subsidiary that is a Credit Party may
sell or issue any of such Subsidiary’s Equity Interests to any Credit Party,
and any Subsidiary that is not a Credit Party may sell or issue any of such
Subsidiary’s Equity Interests to the Borrower or any Subsidiary;

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(xi)           the Borrower may sell the assets described
in Schedule VI for Fair Market Value; and

(xii)          Permitted Acquisitions may be consummated in
accordance with the requirements of Section 9.13.

To the extent the
Required Lenders waive the provisions of this Section 10.02 with respect to the
sale of any Collateral, or any Collateral is sold as permitted by this Section
10.02 (other than to the Borrower or a Subsidiary thereof), such Collateral
shall be sold free and clear of the Liens created by the Security Documents,
and the Administrative Agent and the Collateral Agent shall be authorized to
take any actions deemed appropriate in order to effect the foregoing.

10.03.      Dividends.  The Borrower will not, and will not permit
any of its Subsidiaries to, authorize, declare or pay any Dividends, except
that:

(i)            any Subsidiary of the Borrower may pay cash
Dividends to the Borrower or to any Wholly-Owned Domestic Subsidiary of the
Borrower and any Foreign Subsidiary of the Borrower also may pay cash Dividends
to any Wholly-Owned Foreign Subsidiary of the Borrower;

(ii)           any Non-Wholly Owned Subsidiary of the
Borrower may pay cash Dividends to its shareholders, members or partners
generally, so long as the Borrower or its respective Subsidiary which owns the
Equity Interest in the Subsidiary paying such Dividends receives at least its
proportionate share thereof (based upon its relative holding of the Equity
Interest in the Subsidiary paying such Dividends and taking into account the
relative preferences, if any, of the various classes of Equity Interests of
such Subsidiary);

(iii)          the Borrower may purchase its Equity
Interests in the open market pursuant to its stock repurchase plan as in effect
on the Effective Date, or pursuant to an open market purchase plan the terms of
which are consistent with such plan, in an aggregate amount not to exceed $50.0
million;

(iv)          a Wholly-Owned Subsidiary may repurchase its
Equity Interests;

(v)           the repurchase of Equity Interests of the
Borrower deemed to occur upon (a) the exercise of stock options to the
extent such Equity Interests represent a portion of the exercise price of those
stock options and (b) the withholding of a portion of such Equity
Interests to pay Taxes associated therewith, and the purchase of fractional
shares of Equity Interests of the Borrower or any of its Subsidiaries arising
out of stock dividends, splits or combinations or business combination;

(vi)          the Borrower may pay cash Dividends or
purchase its Equity Interests in the open market or otherwise at any time with
the Available Amount at such time so long as immediately after such Dividend or
purchase and any related transaction or borrowing the Borrower satisfies the
Liquidity Test; and

(vii)         the Borrower may repurchase its Equity
Interests, or warrants, puts, options or rights to purchase or otherwise
acquire an Equity Interest in the Borrower from 

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any present or former officer, director or employee or consultant of
the Borrower or any of its Subsidiaries pursuant to an agreement (including an
employment agreement) or plan approved in good faith by the board of directors
of the Borrower or such Subsidiary under which such Person purchases or sells
or is granted an option to purchase or sell such Equity Interests, in an amount
not to exceed $3.0 million in any fiscal year.

10.04.      Indebtedness.  The Borrower will not, and will not permit
any of its Subsidiaries to, contract, create, incur, assume or suffer to exist
any Indebtedness, except:

(i)            Indebtedness incurred pursuant to this
Agreement and the other Credit Documents;

(ii)           Indebtedness outstanding on the Effective
Date and listed on Schedule III (as reduced by any repayments of principal
thereof), and any extension, renewal or refinancing thereof, provided
that the aggregate principal amount of the Indebtedness to be extended, renewed
or refinanced does not increase from that amount outstanding at the time of any
such extension, renewal or refinancing (plus unpaid, accrued interest and
premiums thereon and underwriting discounts, fees, commissions and expenses)
and provided, further, that any Intercompany Debt listed on
Schedule III (and subsequent extensions, refinancings, renewals, replacements
and refundings thereof as permitted pursuant to this Section 10.04(ii)) may
only be extended, refinanced, renewed, replaced or refunded if the Intercompany
Debt so extended, refinanced, renewed, replaced or refunded has the same
obligor(s) and obligee(s) as the Intercompany Debt being extended, refinanced,
renewed, replaced or refunded;

(iii)          Indebtedness of the Borrower under (x)
Interest Rate Protection Agreements entered into with respect to other
Indebtedness permitted under this Section 10.04 and (y) Other Hedging
Agreements entered into in the ordinary course of business and providing
protection to the Borrower and its Subsidiaries against fluctuations in
currency values or commodity prices in connection with the Borrower’s or any of
its Subsidiaries’ operations, in either case so long as the entering into of
such Interest Rate Protection Agreements or Other Hedging Agreements are bona  fide
hedging activities and are not for speculative purposes;

(iv)          Indebtedness of the Borrower and its
Subsidiaries evidenced by Capitalized Lease Obligations and purchase money
Indebtedness described in Section 10.01(vi), provided that in no event
shall the sum of the aggregate principal amount of all Capitalized Lease
Obligations and purchase money Indebtedness permitted by this clause (iv)
exceed $20.0 million at any time outstanding;

(v)           Indebtedness constituting Intercompany Loans
to the extent permitted by Section 10.05(viii);

(vi)          Indebtedness consisting of guaranties (x) by
the Borrower and the Guarantors of each other’s Indebtedness and lease and
other contractual obligations permitted under this Agreement and (y) by Foreign
Subsidiaries of the Borrower of each other’s Indebtedness and lease and other
contractual obligations permitted under this Agreement;

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(vii)         Indebtedness consisting of new guaranties by
the Borrower or the Guarantors of Indebtedness of Foreign Subsidiaries
outstanding on the Effective Date;

(viii)        Indebtedness arising from the honoring by a
bank or other financial institution of a check, draft or similar instrument
drawn against insufficient funds in the ordinary course of business, so long as
such Indebtedness is extinguished within four Business Days of its incurrence;

(ix)           Indebtedness of the Borrower and its
Subsidiaries with respect to performance bonds, surety bonds, appeal bonds or
customs bonds required in the ordinary course of business or in connection with
the enforcement of rights or claims of the Borrower or any of its Subsidiaries
or in connection with judgments that do not result in a Default or an Event of
Default, provided that the aggregate outstanding amount of all such performance
bonds, surety bonds, appeal bonds and customs bonds permitted by this clause
(viii) shall not at any time exceed $3.0 million;

(x)            Indebtedness of the Borrower or any of its
Subsidiaries which may be deemed to exist in connection with obligations from
agreements to provide for indemnification, adjustment of purchase price or
similar obligations, earn-outs or other similar obligations, or from guarantees
or letters of credit, surety bonds or performance bonds securing the
performance of the Borrower or any of its Subsidiaries incurred in connection
with the acquisition or disposition of the assets of the Borrower or the assets
or capital stock of a Person that is or becomes a Subsidiary of the Borrower,
so long as any such obligations are those of the Person making the respective
acquisition or sale, and are not guaranteed by any other Person except as
permitted by Section 10.04(vi); provided that the maximum aggregate
liability in connection with any such disposition in respect of all such
Indebtedness will at no time exceed the gross proceeds actually received by the
Borrower and its Subsidiaries in connection with such disposition.

(xi)           Indebtedness of Foreign Subsidiaries of the
Borrower in the form of letters of credit or under lines of credit to any such
Foreign Subsidiary from Persons other than the Borrower or any of its
Subsidiaries, the proceeds of which Indebtedness are used for such Foreign
Subsidiary’s working capital purposes, provided that the aggregate
principal amount of all such Indebtedness outstanding at any time for all such
Foreign Subsidiaries shall not exceed $25.0 million;

(xii)          the guarantee by the Borrower or any of the
Guarantors of Indebtedness of the Borrower or any of its Subsidiaries that was
permitted to be incurred by another provision of this covenant;

(xiii)         Indebtedness constituting reimbursement
obligations with respect to letters of credit issued in the ordinary course of
business, including without limitation, letters of credit in respect of workers’
compensation claims, unemployment insurance, health, disability and other
employee benefits or property, casualty or liability insurance or
self-insurance obligations, bankers’ acceptances, appeal, performances and
surety bonds or guarantees and other obligations of a like nature in the
ordinary course of business and in any such case any reimbursement obligation
in connection therewith;

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(xiv)        so long as both (a) no Default or Event of
Default then exists or would result therefrom and (b) immediately after
giving pro forma effect to the incurrence and the application of proceeds
thereof the Borrower would be in compliance with the covenants contained in
Sections 10.08 and 10.09, Permitted Subordinated Debt;

(xv)         so long as both (a) no Default or Event
of Default then exists or would result therefrom and (b) immediately after
giving pro forma effect to the incurrence and the application of proceeds
thereof the Borrower would be in compliance with the covenant in Section 10.08
and with the covenant in Section 10.09 (substituting 4.0:1 for the ratio
specified therein), additional unsecured debt of the Borrower (that may be
guaranteed by those Subsidiaries that are Credit Parties); and

(xvi)        so long as no Default or Event of Default then
exists or would result therefrom, additional Indebtedness incurred by the
Borrower and its Subsidiaries in an aggregate principal amount not to exceed
$15.0 million at any one time outstanding, which Indebtedness shall be
unsecured unless otherwise permitted under Section 10.01.

10.05.      Advances, Investments and
Loans.  The Borrower will not, and
will not permit any of its Subsidiaries to, directly or indirectly, lend money
or credit or make advances to any Person, or purchase or acquire any stock,
obligations or securities of, or any other Equity Interest in, or make any
capital contribution to, any other Person, or purchase or own a futures
contract or otherwise become liable for the purchase or sale of currency or
other commodities at a future date in the nature of a futures contract, or hold
any cash or Cash Equivalents (each of the foregoing, an “Investment” and
collectively, “Investments”), except that the following shall be
permitted:

(i)            the Borrower and its Subsidiaries may
acquire and hold accounts receivables owing to any of them, if created or
acquired in the ordinary course of business and payable or dischargeable in
accordance with customary trade terms of the Borrower or such Subsidiary;

(ii)           the Borrower and its Subsidiaries may
acquire and hold cash and Cash Equivalents;

(iii)          the Borrower and its Subsidiaries may hold
the Investments held by them on the Effective Date and described on Schedule V,
provided that any additional Investments made with respect thereto shall
be permitted only if permitted under the other provisions of this Section
10.05;

(iv)          the Borrower and its Subsidiaries may acquire
and own investments (including debt obligations) received in connection with
the bankruptcy or reorganization of suppliers and customers and in good faith
settlement of delinquent obligations of, and other disputes with, customers and
suppliers arising in the ordinary course of business;

(v)           the Borrower and its Subsidiaries may make
loans and advances to their officers, employees and consultants for moving,
relocation and travel expenses and other similar expenditures, in each case in
the ordinary course of business in an aggregate 

 75
 

 

amount not to exceed $500,000 at any time (determined without regard to
any write-downs or write-offs of such loans and advances);

(vi)          the Borrower and its Subsidiaries may acquire
and hold obligations of their officers and employees in connection with such
officers’ and employees’ acquisition of shares of the Borrower Common Shares
(so long as no cash is actually advanced by the Borrower or any of its
Subsidiaries in connection with the acquisition of such obligations);

(vii)         the Borrower may enter into Interest Rate
Protection Agreements and Other Hedging Agreements to the extent permitted by
Section 10.04(iii);

(viii)        (I) any Credit Party may make intercompany loans
and advances to any other Credit Party, (II) any Subsidiary that is not a
Credit Party may make intercompany loans and advances to any Credit Party and
(III) the Borrower or any Subsidiary may make intercompany loans and advances
to any Subsidiary that is not a Credit Party (such intercompany loans and
advances referred to in preceding clauses (I) through (III), collectively, the “Intercompany
Loans” (it being understood that intercompany receivables and payables in
the ordinary course shall not constitute Intercompany Loans)), provided
that each Intercompany Loan shall be evidenced by the Intercompany Note and, in
the case of a loan or advance by a Credit Party, pledged by such Credit Party
as Collateral pursuant to the Security Documents and provided further that the aggregate amount of Intercompany Loans on
and after the Effective Date made by any Credit Party to any Subsidiary that is
not a Credit Party pursuant to preceding subclause (III), when added to the
aggregate amount of contributions, capitalizations and forgiveness made by any
Credit Party to any Subsidiary that is not a Credit Party under clause (ix)
below (determined without regard to any write-downs or write-offs thereof),
shall not exceed $15.0 million;

(ix)           (I) the Borrower and any Guarantor may make
capital contributions to any Guarantor, and (II) the Borrower or any Subsidiary
may make capital contributions to any Subsidiary that is not a Credit Party,
and may capitalize or forgive any Indebtedness owed to it by a Subsidiary that
is not a Credit Party; provided that (x) the aggregate amount of
contributions, capitalizations and forgiveness on and after the Effective Date
made pursuant to preceding subclause (II) (for this purposes, taking the Fair
Market Value of any property (other than cash) so contributed at the time of
such contribution), when added to the aggregate outstanding principal amount of
Intercompany Loans made by any Credit Party to any Subsidiary that is not a
Credit Party under clause (viii) above (determined without regard to any
write-downs or write-offs thereof), shall not exceed $15.0 million, (y) no
contribution, capitalization or forgiveness may be made pursuant to preceding
subclause (II) at any time a Default or Event of Default has occurred and is
continuing, and (z) in the case of any contribution pursuant to preceding
subclause (I), any security interest granted to the Collateral Agent for the
benefit of the Secured Parties pursuant to the Security Documents in any assets
so contributed shall remain in full force and effect and perfected (to at least
the same extent as in effect immediately prior to such contribution) and all
actions required to maintain said perfected status have been taken;

 76
 

 

(x)            the Borrower and its Subsidiaries may own
the Equity Interests of their respective Subsidiaries, whether now existing or
hereafter acquired (so long as all amounts invested in such Subsidiaries after
the Effective Date are independently justified under another provision of this
Section 10.05);

(xi)           Contingent Obligations permitted by Section
10.04, to the extent constituting Investments;

(xii)          the Borrower and its Subsidiaries may receive
and hold promissory notes and other non-cash consideration received in
connection with any asset sale permitted by Section 10.02(iii);

(xiii)         Investments made in cash at any time with the
Available Amount at such time so long as immediately after such Investment and
the related transaction or borrowing the Borrower satisfies the Liquidity Test;

(xiv)        Investments of a Subsidiary acquired after the
Effective Date or of a corporation merged into or consolidated with a
Subsidiary in accordance with Section 10.05 to the extent that such Investments
were not made in contemplation of or in connection with such acquisition,
merger or consolidation and were in existence on the date of such acquisition,
merger or consolidation;

(xv)         in connection with the sale, lease or rental
of inventory in the ordinary course of business, the Borrower and its
Subsidiaries may hold Investments consisting of long-term financing provided by
the Borrower or such Subsidiary to the purchaser of such inventory;

(xvi)        Dividends permitted by Section 10.03;

(xvii)       Permitted Acquisitions shall be permitted in
accordance with the requirements of Section 9.13;

(xviii)      in addition to Investments permitted by clauses
(i) through (xvii) and (xix) of this Section 10.05, the Borrower and its
Subsidiaries may make additional loans, advances and other Investments to or in
a Person in an aggregate amount for all loans, advances and other Investments
made pursuant to this clause (xviii) (determined without regard to any
write-downs or write-offs thereof), net of cash repayments of principal in the
case of loans, sale proceeds in the case of Investments in the form of debt
instruments and cash equity returns (whether as a distribution, dividend,
redemption or sale) in the case of equity investments, not to exceed $5.0
million; and

(xix)         in addition to Investments permitted by
clauses (i) through (xviii) of this Section 10.05, the Borrower and its
Subsidiaries may make additional loans, advances and other Investments to or in
a Person in an aggregate amount for all loans, advances and other Investments
made pursuant to this clause (xix) (determined without regard to any
write-downs or write-offs thereof), net of cash repayments of principal in the
case of loans, sale proceeds in the case of Investments in the form of debt
instruments and cash equity returns (whether as a distribution, dividend,
redemption or sale) in the case of equity 

 77
 

 

investments, not to exceed, (i) for the Borrower’s fiscal year
ending October 31, 2007, $10.0 million, and (ii) for each fiscal year
of the Borrower thereafter, $10.0 million; provided, however,
that loans, advances and other Investments made pursuant to this clause (xix)
must be made in or to an entity with which the Borrower or its Subsidiaries
have or reasonably expect to have a strategic alliance or ongoing business
relationship.

10.06.      Transactions with
Affiliates.  The Borrower will not,
and will not permit any of its Subsidiaries to, enter into any transaction or
series of related transactions with any Affiliate of the Borrower or any of its
Subsidiaries, other than in the ordinary course of business and on terms and
conditions substantially as favorable to the Borrower or such Subsidiary as
would reasonably be obtained by the Borrower or such Subsidiary at that time in
a comparable arm’s-length transaction with a Person other than an Affiliate,
except that the following in any event shall be permitted:

(i)            Dividends may be paid to the extent
provided in Section 10.03;

(ii)           loans may be made and other transactions may
be entered into by the Borrower and its Subsidiaries to the extent permitted by
Sections 10.02, 10.04 and 10.05;

(iii)          customary fees may be paid to non-officer
directors of the Borrower and its Subsidiaries;

(iv)          the Borrower and its Subsidiaries may enter
into, and may make payments under, employment agreements, employee benefits
plans, stock option plans, indemnification provisions and other similar
compensatory arrangements with officers, employees and directors of the
Borrower and its Subsidiaries in the ordinary course of business;

(v)           any transaction between or among the
Borrower and its Subsidiaries in the ordinary course of business and consistent
with past practice;

(vi)          the Transactions;

(vii)         Subsidiaries of the Borrower may pay
management fees, licensing fees and similar fees to the Borrower or to any
Guarantor; and

(viii)        transactions between the Borrower or its
Subsidiaries, on the one hand, and Sona Mobile Holdings Corp. or its
Affiliates, on the other hand, in each case in the ordinary course of business
and consistent with past practice.

10.07.      [Reserved]

10.08.      Interest Expense Coverage
Ratio.  The Borrower will not permit
the Interest Expense Coverage Ratio for any Test Period of the Borrower ending
on or after January 31, 2007 to be less than 3.0:1.

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10.09.      Total Leverage Ratio.  The Borrower will not permit the Total
Leverage Ratio during a period set forth below to be greater than the ratio set
forth opposite such period below:

	
  Period

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  From the Initial
  Borrowing Date through and including the day before the last day of the
  Borrower’s fiscal quarter ending October 31, 2009

  	
   

  	
  4.50:1

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  The last day of
  the Borrower’s fiscal quarter ending October 31, 2009 through and including
  the day before the last day of the Borrower’s fiscal quarter ending October
  31, 2010

  	
   

  	
  4.00:1

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  The last day of
  the Borrower’s fiscal quarter ending October 31, 2010 through and including
  the day before the last day of the Borrower’s fiscal quarter ending October
  31, 2011

  	
   

  	
  3.75:1

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Thereafter

  	
   

  	
  3.50:1

  	
   

  

 

10.10.      Modifications of
Certificate of Incorporation, By-Laws and Certain Other Agreements; Payment of
Other Debt.  The Borrower will not,
and will not permit any of its Subsidiaries to, amend, modify or change its
certificate or articles of incorporation (including by the filing or
modification of any certificate or articles of designation), certificate of
formation, limited liability company agreement or by-laws (or the equivalent
organizational documents), as applicable, unless such amendment, modification,
change or other action contemplated by this Section 10.10 is not adverse in any
material respect to the interests of the Lender.  The Borrower will not, and will not permit
any of its Subsidiaries to

(i)            make any voluntary or optional payment or
prepayment on or redemption, repurchase or acquisition for value of (including,
without limitation, by way of depositing with the trustee with respect thereto
or any other Person money or securities before due for the purpose of paying
when due), or any prepayment or redemption as a result of any asset sale,
change of control or similar event of, any Subordinated Indebtedness incurred
pursuant to clauses (xiv), (xv) or (xvi) of Section 10.10; and

(ii)           amend or modify, or permit the amendment or
modification of, any provision of any Subordinated Indebtedness incurred
pursuant to clauses (xiv), (xv) or (xvi) of Section 10.10.

10.11.      Limitation on Certain
Restrictions on Subsidiaries.  The
Borrower will not, and will not permit any of its Subsidiaries to, directly or
indirectly, create or otherwise cause or suffer to exist or become effective
any encumbrance or restriction on the ability of any such Subsidiary to (a) pay
dividends or make any other distributions on its capital stock or any other
Equity Interest or participation in its profits owned by the Borrower or any of
its Subsidiaries, or pay any Indebtedness owed to the Borrower or any of its
Subsidiaries, (b) make loans or advances 

 79
 

 

to the Borrower or any of
its Subsidiaries or (c) transfer any of its properties or assets to the
Borrower or any of its Subsidiaries, except for such encumbrances or
restrictions existing under or by reason of (i) applicable law, (ii) this
Agreement and the other Credit Documents, (iii) customary provisions
restricting subletting or assignment of any lease governing any leasehold
interest of the Borrower or any of its Subsidiaries, (iv) customary provisions
restricting assignment of any licensing agreement (in which the Borrower or any
of its Subsidiaries is the licensee) or other contract entered into by the
Borrower or any of its Subsidiaries in the ordinary course of business, (v) restrictions
on the transfer of any asset pending the close of the sale of such asset,
(vi) restrictions on the transfer of any asset subject to a Lien permitted
by Section 10.01(ii), (iv), (v), (xi) or (xii), (vii) any agreement in effect
at the time such subsidiary becomes a Subsidiary, so long as such agreement was
not entered into in contemplation of such person becoming a Subsidiary, (viii)
any agreement in effect on the Effective Date, including agreements governing
existing Indebtedness, and any amendments, restatements, modifications,
renewals, 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
encumbrances or restrictions than those contained in those agreements on the
Effective Date and (ix) restrictions contained in any documents documenting
Indebtedness of any Foreign Subsidiary permitted hereunder.

10.12.      Limitation on Issuance of
Equity Interests.

(a)           The Borrower will not,
and will not permit any of its Subsidiaries to, issue (i) any Preferred
Equity or (ii) any redeemable common stock or other redeemable common Equity
Interests (other than common stock or other redeemable common Equity Interests
that are or are redeemable at the sole option of the Borrower or such
Subsidiary, as the case may be).

(b)           The Borrower will not
permit any of its Subsidiaries to issue any capital stock or other Equity
Interests (including by way of sales of treasury stock) or any options or
warrants to purchase, or securities convertible into, capital stock or other
Equity Interests, except for any issuance to the Borrower or any other
Subsidiary in the case of a Subsidiary that is not a Credit Party and any
issuance to a Credit Party in the case of a Subsidiary that is a Credit Party.

10.13.      Business; etc.  The Borrower will not, and will not permit
any of its Subsidiaries to, engage directly or indirectly in any business other
than the businesses engaged in by the Borrower and its Subsidiaries as of the
Effective Date and any business or activity that is reasonably similar thereto
or a reasonable extension, development or expansion thereof or ancillary thereto
(a “Permitted Business”).

SECTION 11.         Events of Default.

Upon the
occurrence of any of the following specified events (each, an “Event of
Default”):

11.01.      Payments.  The Borrower shall (i) default in the payment
when due of any principal of the Loans or any Note or (ii) default, and such
default shall continue unremedied for five or more Business Days, in the
payment when due of any interest on the Loan or Note,

 80

 

any Unpaid Drawing or any
Fees or any other amounts owing hereunder or under any other Credit Document;
or

11.02.      Representations, etc.  Any representation, warranty or statement
made or deemed made by any Credit Party herein or in any other Credit Document
or in any certificate delivered to the Administrative Agent or any Lender
pursuant hereto or thereto shall prove to be untrue in any material respect on
the date as of which made or deemed made; or

11.03.      Covenants.  The Borrower or any of its Subsidiaries shall
(i) default in the due performance or observance by it of any term, covenant or
agreement contained in Section 9.01(e)(i), 9.10 or Section 10 or
(ii) default in the due performance or observance by it of any other term,
covenant or agreement contained in this Agreement (other than those set forth
in Sections 11.01 and 11.02) and such default shall continue unremedied
for a period of 30 days after written notice thereof to the defaulting
party by the Administrative Agent or the Required Lenders; or

11.04.      Default Under Other
Agreements.  (i) The Borrower or any
of its Subsidiaries shall (x) default in any payment of any Indebtedness (other
than the Obligations) beyond the period of grace, if any, provided in an
instrument or agreement under which such Indebtedness was created or (y)
default in the observance or performance of any agreement or condition relating
to any Indebtedness (other than the Obligations) 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 holders of such Indebtedness
(or a trustee or agent on behalf of such holder or holders) to cause
(determined without regard to whether any notice is required), any such
Indebtedness to become due prior to its stated maturity, or (ii) any
Indebtedness (other than the Obligations) of the Borrower or any of its
Subsidiaries shall be declared to be (or shall become) due and payable, or
required to be prepaid other than by a regularly scheduled required prepayment,
prior to the stated maturity thereof, provided that it shall not be a
Default or an Event of Default under this Section 11.04 unless the aggregate
principal amount of all Indebtedness as described in preceding clauses (i) and
(ii) is at least $10.0 million; or

11.05.      Bankruptcy, etc.  The Borrower or any of its Subsidiaries
(other than an Immaterial Subsidiary) shall commence a voluntary case
concerning itself under Title 11 of the United States Code entitled “Bankruptcy,”
as now or hereafter in effect, or any successor thereto (the “Bankruptcy
Code”); or an involuntary case is commenced against the Borrower or any of
its Subsidiaries (other than an Immaterial Subsidiary), and the petition is not
controverted within 10 days, or is not dismissed within 45 days after the
filing thereof, provided, however, that during the pendency of
such period, each Lender shall be relieved of its obligation to extend credit
hereunder; or a custodian (as defined in the Bankruptcy Code) is appointed for,
or takes charge of, all or substantially all of the property of the Borrower or
any of its Subsidiaries (other than an Immaterial Subsidiary), to operate all
or any substantial portion of the business of the Borrower or any of its
Subsidiaries (other than an Immaterial Subsidiary), or the Borrower or any of
its Subsidiaries (other than an Immaterial Subsidiary) commences any other
proceeding under any reorganization, arrangement, adjustment of debt, relief of
debtors, dissolution, insolvency or liquidation or similar law of any
jurisdiction whether now or hereafter in effect relating to the Borrower or any
of its Subsidiaries (other than an Immaterial Subsidiary), or there is
commenced 

 81
 

 

against the Borrower or
any of its Subsidiaries (other than an Immaterial Subsidiary) any such
proceeding which remains undismissed for a period of 45 days after the filing
thereof, or the Borrower or any of its Subsidiaries is (other than an
Immaterial Subsidiary) adjudicated insolvent or bankrupt; or any order of
relief or other order approving any such case or proceeding is entered; or the
Borrower or any of its Subsidiaries (other than an Immaterial Subsidiary) makes
a general assignment for the benefit of creditors; or any Company action is
taken by the Borrower or any of its Subsidiaries (other than an Immaterial
Subsidiary) for the purpose of effecting any of the foregoing; or

11.06.      Security Documents.  Other than by reason of a release of
Collateral in accordance with the terms hereof or thereof or the satisfaction
in full of the Obligations in accordance with the terms hereof, any of the
Security Documents shall cease to be in full force and effect, or shall cease
to give the Collateral Agent for the benefit of the Secured Parties the Liens,
rights, powers and privileges purported to be created thereby (including a
perfected security interest in, and Lien on, all of the Collateral, in favor of
the Collateral Agent, superior to and prior to the rights of all third Persons
(except as permitted by Section 10.01), and subject to no other Liens (except
as permitted by Section 10.01), except to the extent that any such loss of
perfection or priority results from the failure of the Collateral Agent to maintain
possession of certificates actually delivered to it representing securities or
instruments or promissory notes pledged under the Security Documents or to file
UCC continuation or amendment statements; or any Credit Party shall default in
the due performance or observance of any term, covenant or agreement on its
part to be performed or observed pursuant to any such Security Document and
such default shall continue beyond the period of grace, if any, specifically
applicable thereto pursuant to the terms of such Security Document; or

11.07.      ERISA.  An ERISA Event, or termination, withdrawal or
noncompliance with applicable law or plan terms with respect to Foreign Plans,
shall have occurred that, when taken together with all other ERISA Events, and
similar events with respect to Foreign Plans, that have occurred, would
reasonably be expected to result in a Material Adverse Effect; or

11.08.      Guaranties.  Any Guaranty or any provision thereof shall
cease to be in full force or effect as to any Guarantor (except as a result of
a release of any Guarantor in accordance with the terms thereof), or any
Guarantor or any Person acting for or on behalf of such Guarantor shall deny or
disaffirm such Guarantor’s obligations under the Guaranty to which it is a
party or any Guarantor shall default in the due performance or observance of
any term, covenant or agreement on its part to be performed or observed
pursuant to the Guaranty to which it is a party; or

11.09.      Judgments.  One or more judgments or decrees shall be
entered against the Borrower or any Subsidiary involving in the aggregate for
the Borrower and its Subsidiaries a liability (not paid or to the extent not
covered by a reputable and solvent insurance company) and such judgments and
decrees either shall be final and non-appealable or shall not be vacated,
discharged or stayed or bonded pending appeal for any period of 30 consecutive
days, and the aggregate amount of all such judgments equals or exceeds $10.0
million; or

 82
 

 

11.10.      Change of Control.  A Change of Control shall occur; then, and in
any such event, and at any time thereafter, if any Event of Default shall then
be continuing, the Administrative Agent, upon the written request of the
Required Lenders, shall by written notice to the Borrower, take any or all of
the following actions, without prejudice to the rights of the Administrative
Agent, any Lender or the holder of any Note to enforce its claims against any
Credit Party (provided that, if an Event of Default specified in Section
11.05 shall occur with respect to the Borrower, the result which would occur
upon the giving of written notice by the Administrative Agent as specified in
clauses (i) and (ii) below shall occur automatically without the giving of any
such notice):  (i) declare the Total
Revolving Commitment terminated, whereupon all Revolving Commitments of each
Lender shall forthwith terminate immediately and any Commitment Commission
shall forthwith become due and payable without any other notice of any kind;
(ii) declare the principal of and any accrued interest in respect of all Loans
and the Notes and all Obligations owing hereunder and thereunder to be,
whereupon the same shall become, forthwith due and payable without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
each Credit Party; (iii) terminate any Letter of Credit which may be terminated
in accordance with its terms; (iv) direct the Borrower to pay (and the Borrower
agrees that upon receipt of such notice, or upon the occurrence of an Event of
Default specified in Section 11.05 with respect to the Borrower, it will pay)
to the Collateral Agent at the Payment Office such additional amount of cash or
Cash Equivalents, to be held as security by the Collateral Agent, as is equal
to the aggregate Stated Amount of all Letters of Credit issued for the account
of the Borrower and then outstanding; and (v) enforce, as Collateral Agent, all
of the Liens and security interests created pursuant to the Security Documents.

SECTION 12.               The Administrative Agent.

12.01.      Appointment.  The Lenders hereby irrevocably designate and
appoint Deutsche Bank Trust Company Americas as Administrative Agent (for
purposes of this Section 12 and Section 13.01, the term “Administrative Agent”
also shall include Deutsche Bank Trust Company Americas in its capacity as
Collateral Agent pursuant to the Security Documents) to act as specified herein
and in the other Credit Documents.  Each
Lender hereby irrevocably authorizes, and each holder of any Note by the
acceptance of such Note shall be deemed irrevocably to authorize, the
Administrative Agent to take such action on its behalf under the provisions of
this Agreement, the other Credit Documents and any other instruments and
agreements referred to herein or therein and to exercise such powers and to
perform such duties hereunder and thereunder as are specifically delegated to
or required of the Administrative Agent by the terms hereof and thereof and
such other powers as are reasonably incidental thereto.  The Administrative Agent may perform any of
its respective duties hereunder by or through its officers, directors, agents,
employees or affiliates.

12.02.      Nature of Duties.

(a)           The Administrative
Agent shall not have any duties or responsibilities except those expressly set
forth in this Agreement and in the other Credit Documents.  Neither the Administrative Agent nor any of
its officers, directors, agents, employees or affiliates shall be liable for
any action taken or omitted by it or them hereunder or under any other Credit
Document or in connection herewith or therewith, unless caused by its or their
gross negligence or 

 83
 

 

willful misconduct (as
determined by a court of competent jurisdiction in a final and non-appealable
decision).  The duties of the
Administrative Agent shall be mechanical and administrative in nature; the
Administrative Agent shall not have by reason of this Agreement or any other
Credit Document a fiduciary relationship in respect of any Lender or the holder
of any Note; and nothing in this Agreement or in any other Credit Document,
expressed or implied, is intended to or shall be so construed as to impose upon
the Administrative Agent any obligations in respect of this Agreement or any
other Credit Document except as expressly set forth herein or therein.

(b)           Notwithstanding any
other provision of this Agreement or any provision of any other Credit
Document, the Arrangers is named as such for recognition purposes only, and in
its capacity as such shall have no powers, duties, responsibilities or
liabilities with respect to this Agreement or the other Credit Documents or the
transactions contemplated hereby and thereby; it being understood and agreed
that the Arrangers shall be entitled to all indemnification and reimbursement
rights in favor of the Administrative Agent as, and to the extent, provided for
under Sections 12.06 and 13.01.  Without
limitation of the foregoing, the Arrangers shall not, solely by reason of this
Agreement or any other Credit Documents, have any fiduciary relationship in
respect of any Lender or any other Person.

12.03.      Lack of Reliance on the
Administrative Agent.  Independently
and without reliance upon the Administrative Agent, each Lender, to the extent
it deems appropriate, has made and shall continue to make (i) its own
independent investigation of the financial condition and affairs of the
Borrower and its Subsidiaries in connection with the making and the continuance
of the Loans and the taking or not taking of any action in connection herewith
and (ii) its own appraisal of the creditworthiness of the Borrower and its
Subsidiaries and, except as expressly provided in this Agreement, the
Administrative Agent shall not have any duty or responsibility, either
initially or on a continuing basis, to provide any Lender or the holder of any
Note with any credit or other information with respect thereto, whether coming
into its possession before the making of the Loans or at any time or times
thereafter.  The Administrative Agent
shall not be responsible to any Lender or the holder of any Note for any
recitals, statements, information, representations or warranties herein or in
any document, certificate or other writing delivered in connection herewith or
for the execution, effectiveness, genuineness, validity, enforceability,
perfection, collectibility, priority or sufficiency of this Agreement or any
other Credit Document or the financial condition of the Borrower or any of its
Subsidiaries or be required to make any inquiry concerning either the
performance or observance of any of the terms, provisions or conditions of this
Agreement or any other Credit Document, or the financial condition of the
Borrower or any of its Subsidiaries or the existence or possible existence of
any Default or Event of Default.

12.04.      Certain Rights of the
Administrative Agent.  If the
Administrative Agent requests instructions from the Required Lenders with
respect to any act or action (including failure to act) in connection with this
Agreement or any other Credit Document, the Administrative Agent shall be entitled
to refrain from such act or taking such action unless and until the
Administrative Agent shall have received instructions from the Required
Lenders; and the Administrative Agent shall not incur liability to any Lender
by reason of so refraining.  Without
limiting the foregoing, neither any Lender nor the holder of any Note shall
have any right of action whatsoever against the Administrative Agent as a
result of the Administrative Agent acting or refraining 

 84
 

 

from acting hereunder or
under any other Credit Document in accordance with the instructions of the
Required Lenders.

12.05.      Reliance.  The Administrative Agent shall be entitled to
rely, and shall be fully protected in relying, upon any note, writing,
resolution, notice, statement, certificate, telex, teletype or telecopier
message, cablegram, radiogram, order or other document or telephone message
signed, sent or made by any Person that the Administrative Agent believed to be
the proper Person, and, with respect to all legal matters pertaining to this
Agreement and any other Credit Document and its duties hereunder and
thereunder, upon advice of counsel selected by the Administrative Agent.

12.06.      Indemnification.  To the extent the Administrative Agent (or
any affiliate thereof) is not reimbursed and indemnified by the Borrower, the
Lenders will reimburse and indemnify the Administrative Agent (and any
affiliate thereof) in proportion to their respective “percentage” as used in
determining the Required Lenders (determined as if there were no Defaulting
Lenders) for and against any and all liabilities, obligations, losses, damages,
penalties, claims, actions, judgments, costs, expenses or disbursements of
whatsoever kind or nature which may be imposed on, asserted against or incurred
by the Administrative Agent (or any affiliate thereof) in performing its duties
hereunder or under any other Credit Document or in any way relating to or
arising out of this Agreement or any other Credit Document; provided
that the Lenders shall not be liable for any portion of such liabilities,
obligations, losses, damages, penalties, claims, actions, judgments, suits,
costs, expenses or disbursements resulting from the Administrative Agent’s (or
such affiliate’s) gross negligence or willful misconduct (as determined by a
court of competent jurisdiction in a final and non-appealable decision).

12.07.      The Administrative Agent
in Its Individual Capacity.  With
respect to its obligation to make Loans, or issue or participate in Letters of
Credit, under this Agreement, the Administrative Agent shall have the rights
and powers specified herein for a “Lender” and may exercise the same rights and
powers as though it were not performing the duties specified herein; and the
terms “Lender,” and “Required Lenders,” or any similar terms shall, unless the
context clearly indicates otherwise, include the Administrative Agent in its
respective individual capacities.  The
Administrative Agent and its affiliates may accept deposits from, lend money
to, and generally engage in any kind of banking, investment banking, trust or
other business with, or provide debt financing, equity capital or other
services (including financial advisory services) to any Credit Party or any
Affiliate of any Credit Party (or any Person engaged in a similar business with
any Credit Party or any Affiliate thereof) as if they were not performing the
duties specified herein, and may accept fees and other consideration from any
Credit Party or any Affiliate of any Credit Party for services in connection
with this Agreement and otherwise without having to account for the same to the
Lenders.

12.08.      Resignation by the
Administrative Agent, Issuing Lender and Swingline Lender.

(a)           The Administrative
Agent may resign from the performance of all its respective functions and duties
hereunder and/or under the other Credit Documents at any time by giving 30
Business Days’ prior written notice to the Lenders and, unless a Default or an
Event of Default under Section 11.05 then exists, the Borrower.  Any such resignation by an Administrative 

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Agent hereunder shall
also constitute its resignation as an Issuing Lender and the Swingline Lender,
in which case the resigning Administrative Agent (x) shall not be required to
issue any further Letters of Credit or make any additional Swingline Loans
hereunder and (y) shall maintain all of its rights as Issuing Lender or
Swingline Lender, as the case may be, with respect to any Letters of Credit
issued by it, or Swingline Loans made by it, prior to the date of such
resignation.  Such resignation shall take
effect upon the appointment of a successor Administrative Agent pursuant to
clauses (b) and (c) below or as otherwise provided below.

(b)           Upon any such notice of
resignation by the Administrative Agent, the Required Lenders shall appoint a successor
Administrative Agent and Issuing Lender and Swingline Lender hereunder or
thereunder who shall be a commercial bank or trust company reasonably
acceptable to the Borrower, which acceptance shall not be unreasonably withheld
or delayed (provided that the Borrower’s approval shall not be required
if an Event of Default then exists).

(c)           If a successor
Administrative Agent shall not have been so appointed within such 15 Business
Day period, the Administrative Agent, with the consent of the Borrower (which
consent shall not be unreasonably withheld or delayed, provided that the
Borrower’s consent shall not be required if an Event of Default then exists),
shall then appoint a successor Administrative Agent who shall serve as
Administrative Agent hereunder or thereunder until such time, if any, as the
Required Lenders appoint a successor Administrative Agent as provided above.

(d)           If no successor
Administrative Agent has been appointed pursuant to clause (b) or (c) above by
the 20th Business Day after the date such notice of
resignation was given by the Administrative Agent, the Administrative Agent’s
resignation shall become effective and the Required Lenders shall thereafter
perform all the duties of the Administrative Agent hereunder and/or under any
other Credit Document until such time, if any, as the Required Lenders appoint
a successor Administrative Agent as provided above.

(e)           Upon a resignation of
the Administrative Agent pursuant to this Section 12.08, the Administrative
Agent shall remain indemnified to the extent provided in this Agreement and the
other Credit Documents and the provisions of this Section 12.08 shall continue
in effect for the benefit of the Administrative Agent for all of its actions
and inactions while serving as the Administrative Agent.

12.09.      Collateral Matters.

(a)           Each Lender authorizes
and directs the Collateral Agent to enter into the Security Documents for the
benefit of the Lenders and the other Secured Parties.  Each Lender hereby agrees, and each holder of
any Note by the acceptance thereof will be deemed to agree, that, except as
otherwise set forth herein, any action taken by the Required Lenders in
accordance with the provisions of this Agreement or the Security Documents, and
the exercise by the Required Lenders of the powers set forth herein or therein,
together with such other powers as are reasonably incidental thereto, shall be
authorized and binding upon all of the Lenders. 
The Collateral Agent is hereby authorized on behalf of all of the
Lenders, without the necessity of any notice to or further consent from any
Lender, from time to time prior to an Event of Default, 

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to take any action with
respect to any Collateral or Security Documents which may be necessary to
perfect and maintain perfected the security interest in and liens upon the
Collateral granted pursuant to the Security Documents.

(b)           The Lenders hereby
authorize the Collateral Agent, at its option and in its discretion, to release
any Lien granted to or held by the Collateral Agent upon any Collateral (i)
upon termination of the Revolving Loan Commitments and payment and satisfaction
of all of the Obligations at any time arising under or in respect of this
Agreement or the Credit Documents or the transactions contemplated hereby or
thereby, (ii) constituting property being sold or otherwise disposed of (to
Persons other than the Borrower and its Subsidiaries) upon the sale or other
disposition thereof in compliance with Section 10.02, (iii) if approved,
authorized or ratified in writing by the Required Lenders (or all of the
Lenders hereunder, to the extent required by Section 13.12) or (iv) as
otherwise may be expressly provided in the relevant Security Documents.  Upon request by the Administrative Agent at
any time, the Lenders will confirm in writing the Collateral Agent’s authority
to release particular types or items of Collateral pursuant to this Section
12.09.

(c)           The Collateral Agent
shall have no obligation whatsoever to the Lenders or to any other Person to
assure that the Collateral exists or is owned by any Credit Party or is cared
for, protected or insured or that the Liens granted to the Collateral Agent
herein or pursuant hereto have been properly or sufficiently or lawfully
created, perfected, protected or enforced or are entitled to any particular
priority, or to exercise or to continue exercising at all or in any manner or
under any duty of care, disclosure or fidelity any of the rights, authorities
and powers granted or available to the Collateral Agent in this Section 12.09
or in any of the Security Documents, it being understood and agreed that in
respect of the Collateral, or any act, omission or event related thereto, the
Collateral Agent may act in any manner it may deem appropriate, in its sole
discretion, given the Collateral Agent’s own interest in the Collateral as one
of the Lenders and that the Collateral Agent shall have no duty or liability
whatsoever to the Lenders, except for its gross negligence or willful
misconduct (as determined by a court of competent jurisdiction in a final and
non-appealable decision).

12.10.      Delivery of Information.  The Administrative Agent shall not be
required to deliver to any Lender originals or copies of any documents,
instruments, notices, communications or other information received by the Administrative
Agent from any Credit Party, any Subsidiary, the Required Lenders, any Lender,
or any other Person under or in connection with this Agreement or any other
Credit Document except (i) as specifically provided in this Agreement or any
other Credit Document and (ii) as specifically requested from time to time in
writing by any Lender with respect to a specific document, instrument, notice
or other written communication received by and in the possession of the
Administrative Agent at the time of receipt of such request and then only in
accordance with such specific request.

SECTION 13.               Miscellaneous.

13.01.      Payment of Expenses, etc.  The Borrower hereby agrees to:  (i)
pay all reasonable out-of-pocket costs and expenses of the Administrative Agent
and the Collateral Agent (including the reasonable fees and disbursements of
Cahill Gordon & Reindel LLP)
in connection with the preparation, execution and delivery of this Agreement
and the other Credit 

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Documents and the
documents and instruments referred to herein and therein and any amendment,
waiver or consent relating hereto or thereto (provided that in the case
of this clause (i) only, the Borrower shall only be required to reimburse one
counsel to the Administrative Agent and one local counsel in each relevant
jurisdiction in which the Borrower or any of its Subsidiaries is organized as
deemed reasonable and necessary by the Administrative Agent), (ii) after
the occurrence of an Event of Default, pay all reasonable out-of-pocket costs
and expenses of the Administrative Agent, the Collateral Agent and each of the
Issuing Lenders and Lenders in connection with the enforcement of this
Agreement and the other Credit Documents and the documents and instruments
referred to herein and therein or in connection with any refinancing or
restructuring of the credit arrangements provided under this Agreement in the
nature of a “work-out” or pursuant to any insolvency or bankruptcy proceedings
(including, in each case without limitation, the reasonable fees and disbursements
of counsel and consultants for the Administrative Agent and, after the
occurrence of an Event of Default, counsel for each of the Issuing Lenders and
each of the Lenders); (iii) pay and hold the Administrative Agent, the
Collateral Agent, each of the Issuing Lenders and each of the Lenders harmless
from and against any and all present and future stamp, excise and other similar
documentary taxes with respect to the foregoing matters and save the
Administrative Agent, the Collateral Agent, each of the Issuing Lenders and
each of the Lenders harmless from and against any and all liabilities with
respect to or resulting from any delay or omission (other than to the extent
attributable to the Administrative Agent, the Collateral Agent, such Issuing Lender
or such Lender) to pay such taxes; and (iv) indemnify the Administrative
Agent, the Collateral Agent, each Issuing Lender and each Lender, and each of
their respective officers, directors, employees, representatives, agents,
affiliates, trustees and investment advisors from and hold each of them
harmless against any and all liabilities, obligations (including removal or
remedial actions), losses, damages, penalties, claims, actions, judgments,
suits, costs, expenses and disbursements (including reasonable attorneys’ and
consultants’ fees and disbursements) incurred by, imposed on or assessed
against any of them as a result of, or arising out of, or in any way related
to, or by reason of, (a) any investigation, litigation or other proceeding
(whether or not the Administrative Agent, the Collateral Agent, any Issuing
Lender or any Lender is a party thereto and whether or not such investigation,
litigation or other proceeding is brought by or on behalf of any Credit Party)
related to the entering into and/or performance of this Agreement or any other
Credit Document or the use of any Letter of Credit or the proceeds of any Loans
hereunder or the consummation of the Transaction or any other transactions
contemplated herein or in any other Credit Document or the exercise of any of
their rights or remedies provided herein or in the other Credit Documents, or
(b) the actual or alleged presence of Hazardous Materials in the air, surface
water or groundwater or on the surface or subsurface of any Real Property at any
time owned, leased or operated by the Borrower or any of its Subsidiaries, the
generation, storage, transportation, handling or disposal of Hazardous
Materials by the Borrower or any of its Subsidiaries at any location, whether
or not owned, leased or operated by the Borrower or any of its Subsidiaries,
the non-compliance by the Borrower or any of its Subsidiaries with any
Environmental Law (including applicable permits thereunder) applicable to any
Real Property, or any Environmental Claim asserted against the Borrower, any of
its Subsidiaries or any Real Property at any time owned, leased or operated by
the Borrower or any of its Subsidiaries, including, in each case, without
limitation, the reasonable fees and disbursements of counsel and other consultants
incurred in connection with any such investigation, litigation or other
proceeding (but excluding any losses, liabilities, claims, damages or expenses
to the extent incurred by reason of the gross negligence or willful 

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misconduct of the Person
to be indemnified (as determined by a court of competent jurisdiction in a
final and non-appealable decision)).  To
the extent that the undertaking to indemnify, pay or hold harmless the
Administrative Agent, the Collateral Agent, any Issuing Lender or any Lender
set forth in the preceding sentence may be unenforceable because it is
violative of any law or public policy, the Borrower shall make the maximum
contribution to the payment and satisfaction of each of the indemnified
liabilities which is permissible under applicable law.

13.02.      Right of Setoff.  In addition to any rights now or hereafter
granted under applicable law or otherwise, and not by way of limitation of any
such rights, upon the occurrence and during the continuance of an Event of
Default, the Administrative Agent, the Collateral Agent, each Issuing Lender
and each Lender is hereby authorized at any time or from time to time, without
presentment, demand, protest or other notice of any kind to any Credit Party or
to any other Person, any such notice being hereby expressly waived, to set off
and to appropriate and apply any and all deposits (general or special) and any
other Indebtedness at any time held or owing by the Administrative Agent, the
Collateral Agent, such Issuing Lender or such Lender (including by branches and
agencies of the Administrative Agent, the Collateral Agent, such Issuing Lender
or such Lender wherever located) to or for the credit or the account of the
Borrower or any of its Subsidiaries against and on account of the Obligations
and liabilities of the Credit Parties to the Administrative Agent, the
Collateral Agent, such Issuing Lender or such Lender under this Agreement or
under any of the other Credit Documents, including all other claims of any
nature or description arising out of or connected with this Agreement or any
other Credit Document, irrespective of whether or not the Administrative Agent,
the Collateral Agent, such Issuing Lender or such Lender shall have made any
demand hereunder and although said Obligations, liabilities or claims, or any
of them, shall be contingent or unmatured.

13.03.      Notices.  Except as otherwise expressly provided
herein, all notices and other communications provided for hereunder shall be in
writing (including by telecopier or electronic image-scan communication) and
mailed, telecopied, e-mailed or delivered: 
if to any Credit Party, at the address, telecopier number or e-mail
address specified opposite its signature below or in the other relevant Credit
Documents; if to any Lender, at its address specified on Schedule I; and if to
the Administrative Agent, at the Notice Office; or, as to any Credit Party or
the Administrative Agent, at such other address as shall be designated by such
party in a written notice to the other parties hereto and, as to each Lender,
at such other address as shall be designated by such Lender in a written notice
to the Borrower and the Administrative Agent. 
All such notices and communications shall, when mailed, telegraphed, telecopied,
or cabled or sent by overnight courier, be effective when deposited in the
mails, delivered to the telegraph company, cable company or overnight courier,
as the case may be, or sent by telecopier, except that notices and
communications to the Administrative Agent and the Borrower shall not be
effective until received by the Administrative Agent or the Borrower, as the
case may be.

13.04.      Benefit of Agreement;
Assignments; Participations.

(a)           This Agreement shall be
binding upon and inure to the benefit of and be enforceable by the respective
successors and assigns of the parties hereto; provided, however,
the Borrower may not assign or transfer any of its rights, obligations or
interest hereunder without the prior written consent of the Lenders and provided,
further, that, although each Lender may transfer, assign or grant
participations in its rights hereunder, such Lender shall remain a 

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“Lender” for all purposes
hereunder (and may not transfer or assign all or any portion of its Commitments
hereunder except as provided in Sections 2.12 and 13.04(b)) and the transferee,
assignee or participant, as the case may be, shall not constitute a “Lender”
hereunder and provided further, that no
Lender shall transfer or grant any participation under which the participant
shall have rights to approve any amendment to or waiver of this Agreement or
any other Credit Document except to the extent such amendment or waiver would
(i) extend the final scheduled maturity of any Loan, Note or Letter of Credit
(unless such Letter of Credit is not extended beyond the Revolving Loan
Maturity Date) in which such participant is participating, or reduce the rate
or extend the time of payment of interest or Fees thereon (except in connection
with a waiver of applicability of any post-default increase in interest rates)
or reduce the principal amount thereof (it being understood that any amendment
or modification to the financial definitions in this Agreement or to Section
13.07(a) shall not constitute a reduction in the rate of interest or Fees
payable hereunder), or increase the amount of the participant’s participation
over the amount thereof then in effect (it being understood that a waiver of
any Default or Event of Default or of a mandatory reduction in the Total
Revolving Loan Commitment shall not constitute a change in the terms of such
participation, and that an increase in any Revolving Loan Commitment (or the
available portion thereof) or Loan shall be permitted without the consent of
any participant if the participant’s participation is not increased as a result
thereof) or (ii) consent to the assignment or transfer by the Borrower of any
of its rights and obligations under this Agreement or (iii) release all or
substantially all of the Collateral under all of the Security Documents (except
as expressly provided in the Credit Documents) supporting the Loans or Letters
of Credit hereunder in which such participant is participating.  In the case of any such participation, the
participant shall not have any rights under this Agreement or any of the other
Credit Documents (the participant’s rights against such Lender in respect of
such participation to be those set forth in the agreement executed by such
Lender in favor of the participant relating thereto) and all amounts payable by
the Borrower hereunder shall be determined as if such Lender had not sold such
participation.

(b)           Notwithstanding the
foregoing, any Lender may (x) assign all or a portion of its Revolving Loan
Commitments and related outstanding Obligations hereunder to (i) its parent
company and/or any affiliate of such Lender which is at least 50% owned by such
Lender or its parent company, or (ii) in the case of any Lender that is a fund
that invests in loans, any other fund that invests in loans and is managed or
advised by the same investment advisor of any Lender or by an Affiliate of such
investment advisor or (y) assign all, or if less than all, a portion equal to
at least $1.0 million in the aggregate for the assigning Lender or assigning
Lenders, of such Revolving Loan Commitments and related outstanding Obligations
hereunder to one or more Eligible Transferees (treating any fund that invests
in loans and any other fund that invests in loans and is managed or advised by
the same investment advisor of such fund or by an Affiliate of such investment
advisor as a single Eligible Transferee), each of which assignees shall become
a party to this Agreement as a Lender by execution of an Assignment and
Assumption Agreement, provided that (i) at such time, Schedule I shall
be deemed modified to reflect the Revolving Loan Commitments and/or outstanding
Loans, as the case may be, of such new Lender and of the existing Lender, (ii)
upon the surrender of the relevant Notes by the assigning Lender (or, upon such
assigning Lender’s indemnifying the Borrower for any lost Note pursuant to a
customary indemnification agreement) new Notes will be issued, at the Borrower’s
expense, to such new Lender and to the assigning Lender upon the request of
such new Lender or assigning Lender, such new Notes to be in conformity with
the requirements of Section 2.04 (with

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appropriate modifications) to the extent
needed to reflect the revised Revolving Loan Commitments and/or outstanding
Loans, as the case may be, (iii) the consent of the Administrative Agent
shall be required in connection with any such assignment pursuant to clause (y)
above (which consent shall not be unreasonably withheld or delayed), (iv) the
Administrative Agent shall receive at the time of each such assignment, from
the assigning or assignee Lender, the payment of a non-refundable assignment
fee of $3,500 and (v) no such transfer or assignment will be effective until
recorded by the Administrative Agent on the Register pursuant to Section
13.15.  To the extent of any assignment
pursuant to this Section 13.04(b), the assigning Lender shall be relieved of
its obligations hereunder with respect to its assigned Revolving Loan
Commitments and outstanding Loans.  At
the time of each assignment pursuant to this Section 13.04(b) to a Person that
is not already a Lender hereunder, the assignee Lender shall comply with the
requirements of Section 5.04 and shall, to the extent legally entitled to do
so, provide to the Borrower and the Administrative Agent the appropriate IRS
Forms (and, if applicable, a Section 5.04(b)(ii) Certificate) described in
Section 5.04(b) and information requested under the Patriot Act.  To the extent that an assignment of all or
any portion of the Lender’s Revolving Loan Commitments and related outstanding
Obligations pursuant to this Section 13.04(b) would, at the time of such
assignment, result in increased costs under Section 2.09, 3.06 or 5.04
from those being charged by the assigning Lender prior to such assignment, then
the Borrower shall not be obligated to pay such increased costs (although the
Borrower, in accordance with and pursuant to the other provisions of this
Agreement, shall be obligated to pay any other increased costs of the type
described above resulting from changes after the date of the respective
assignment).

(c)           Nothing in this
Agreement shall prevent or prohibit any Lender from pledging its Loans and
Notes hereunder to a Federal Reserve Bank in support of borrowings made by such
Lender from such Federal Reserve Bank and, with prior notification to the
Administrative Agent (but without the consent of the Administrative Agent or
the Borrower), any Lender which is a fund may pledge all or any portion of its
Loans and Notes to its trustee or to a collateral agent providing credit or
credit support to such Lender in support of its obligations to such trustee,
such collateral agent or a holder of such obligations, as the case may be.  No pledge pursuant to this clause (c) shall
release the transferor Lender from any of its obligations hereunder.

13.05.      No Waiver; Remedies
Cumulative.  No failure or delay on
the part of the Administrative Agent, the Collateral Agent, any Issuing Lender
or any Lender in exercising any right, power or privilege hereunder or under
any other Credit Document and no course of dealing between the Borrower or any
other Credit Party and the Administrative Agent, the Collateral Agent, any
Issuing Lender or any Lender shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, power or privilege hereunder or under
any other Credit Document preclude any other or further exercise thereof or the
exercise of any other right, power or privilege hereunder or thereunder.  The rights, powers and remedies herein or in
any other Credit Document expressly provided are cumulative and not exclusive
of any rights, powers or remedies which the Administrative Agent, the
Collateral Agent, any Issuing Lender or any Lender would otherwise have.  No notice to or demand on any Credit Party in
any case shall entitle any Credit Party to any other or further notice or
demand in similar or other circumstances or constitute a waiver of the rights
of the Administrative Agent, the Collateral Agent, any Issuing Lender or any
Lender to any other or further action in any circumstances without notice or
demand.

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13.06.      Payments Pro Rata.

(a)           Except as otherwise provided
in this Agreement, the Administrative Agent agrees that promptly after its
receipt of each payment from or on behalf of the Borrower in respect of any
Obligations hereunder, the Administrative Agent shall distribute such payment
to the Lenders entitled thereto (other than any Lender that has consented in
writing to waive its pro  rata share of any such payment) pro
rata based upon their respective shares, if any, of the Obligations with
respect to which such payment was received.

(b)           Each of the Lenders
agrees that, if it should receive any amount hereunder (whether by voluntary
payment, by realization upon security, by the exercise of the right of setoff
or banker’s lien, by counterclaim or cross action, by the enforcement of any
right under the Credit Documents, or otherwise), which is applicable to the
payment of the principal of, or interest on, the Loans, Unpaid Drawings,
Commitment Commission or Letter of Credit Fees, of a sum which with respect to
the related sum or sums received by other Lenders is in a greater proportion
than the total of such Obligation then owed and due to such Lender bears to the
total of such Obligation then owed and due to all of the Lenders immediately
prior to such receipt, then such Lender receiving such excess payment shall
purchase for cash without recourse or warranty from the other Lenders an
interest in the Obligations of the respective Credit Party to such Lenders in
such amount as shall result in a proportional participation by all the Lenders
in such amount; provided that if all or any portion of such excess
amount is thereafter recovered from such Lenders, such purchase shall be
rescinded and the purchase price restored to the extent of such recovery, but
without interest.

(c)           Notwithstanding
anything to the contrary contained herein, the provisions of the preceding
Sections 13.06(a) and (b) shall be subject to the express provisions of this
Agreement which require, or permit, differing payments to be made to
Non-Defaulting Lenders as opposed to Defaulting Lenders.

13.07.      Calculations;
Computations.

(a)           The financial
statements to be furnished to the Lenders pursuant hereto shall be made and
prepared in accordance with GAAP consistently applied throughout the periods
involved (except as set forth in the notes thereto or as otherwise disclosed in
writing by the Borrower to the Lenders); provided, however, that
if there occurs after the date hereof any change in GAAP that affects in any
respect the calculation of Excess Cash Flow, the Applicable Margin or any
covenant contained in Sections 10.08 and 10.09, the Lenders and the Borrower
shall negotiate in good faith amendments to the provisions of this Agreement
that relate to the calculation of such covenant with the intent of having the
respective positions of the Lenders and the Borrower after such change in GAAP
conform as nearly as possible to their respective positions as of the date of
this Agreement.

(b)           All computations of
interest, Commitment Commission and other Fees hereunder shall be made on the
basis of a year of 360 days (except for interest calculated by reference to the
Prime Lending Rate, which shall be based on a year of 365 or 366 days, as
applicable) for the actual number of days (including the first day but
excluding the last day; except that 

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in the case of Letter of Credit Fees and
Facing Fees, the last day shall be included) occurring in the period for which
such interest, Commitment Commission or Fees are payable.

13.08.      GOVERNING LAW; SUBMISSION
TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL.

(a)           THIS AGREEMENT AND THE
OTHER CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
AND THEREUNDER SHALL, EXCEPT AS OTHERWISE PROVIDED IN ANY MORTGAGE, BE
CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF
NEW YORK.  ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT MAY BE
BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE
SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN THE COUNTY OF NEW
YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT OR ANY OTHER CREDIT
DOCUMENT, THE BORROWER HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF
ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID
COURTS.  THE BORROWER HEREBY FURTHER
IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK PERSONAL JURISDICTION
OVER THE BORROWER, AND AGREES NOT TO PLEAD OR CLAIM, IN ANY LEGAL ACTION
PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT
IN ANY OF THE AFOREMENTIONED COURTS, THAT SUCH COURTS LACK PERSONAL
JURISDICTION OVER THE BORROWER.  FURTHER
IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED
COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED
OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE BORROWER AT ITS ADDRESS SET FORTH
OPPOSITE ITS SIGNATURE BELOW, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER
SUCH MAILING.  EACH CREDIT PARTY HEREBY
IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER
IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING
COMMENCED HEREUNDER OR UNDER ANY OTHER CREDIT DOCUMENT THAT SERVICE OF PROCESS
WAS IN ANY WAY INVALID OR INEFFECTIVE. 
NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE ADMINISTRATIVE AGENT, THE
COLLATERAL AGENT, ANY LENDER OR THE HOLDER OF ANY NOTE TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE
PROCEED AGAINST THE BORROWER IN ANY OTHER JURISDICTION.

(b)           EACH CREDIT PARTY
HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO
THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT
OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN
THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY
WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION
OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM.

 93
 

 

(c)           EACH OF THE PARTIES TO
THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS
AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY
OR THEREBY.

13.09.      Counterparts.  This Agreement may be executed in any number
of counterparts and by the different parties hereto on separate counterparts,
each of which when so executed and delivered shall be an original, but all of
which shall together constitute one and the same instrument.  A set of counterparts executed by all the
parties hereto shall be lodged with the Borrower and the Administrative Agent.

13.10.      Effectiveness.  This Agreement shall become effective on the
date (the “Effective Date”) on which the Borrower, the Administrative
Agent, the Arrangers and each of the Lenders shall have signed a counterpart
hereof (whether the same or different counterparts) and shall have delivered
the same to the Administrative Agent at the Notice Office or, in the case of
the Lenders, shall have given to the Administrative Agent telephonic (confirmed
in writing), written or telex notice (actually received) at such office that
the same has been signed and mailed to it. 
The Administrative Agent will give the Borrower and each Lender prompt
written notice of the occurrence of the Effective Date.

13.11.      Headings Descriptive.  The headings of the several sections and
subsections of this Agreement are inserted for convenience only and shall not
in any way affect the meaning or construction of any provision of this
Agreement.

13.12.      Amendment or Waiver; etc.

(a)           Neither this Agreement
nor any other Credit Document nor any terms hereof or thereof may be changed,
waived, discharged or terminated unless such change, waiver, discharge or
termination is in writing signed by the respective Credit Parties party hereto
or thereto and the Required Lenders (although additional parties may be added
to (and annexes may be modified to reflect such additions), and Subsidiaries of
the Borrower may be released from, the Guaranty and the Security Documents in
accordance with the provisions hereof and thereof without the consent of the
other Credit Parties party thereto or the Required Lenders), provided
that no such change, waiver, discharge or termination shall, without the
written consent of each Lender (with Obligations being directly affected in the
case of following clause (i)), (i) extend the final scheduled maturity of any
Loan or Note or extend the stated expiration date of any Letter of Credit
beyond the Revolving Loan Maturity Date, or reduce the rate or extend the time
of payment of interest or Fees thereon (except in connection with the waiver of
applicability of any post-default increase in interest rates), or reduce the
principal amount thereof (it being understood that any amendment or
modification to the financial definitions in this Agreement or to Section 13.07
shall not constitute a reduction in the rate of interest or Fees for the
purposes of this clause (i)), (ii) release (x) all or substantially all of the
Collateral (except as expressly provided in the Credit Documents) under the
Security Documents or (y) all or substantially all of the Guarantors from
the from their guarantee obligations under the Guaranty, (iii) amend, modify or
waive any provision of this Section 13.12 (except for technical amendments with
respect to additional extensions of credit pursuant to this Agreement which
afford the protections to such additional 

 94
 

 

extensions of credit of the type provided to
the Revolving Loan Commitments on the Effective Date), (iv) reduce the
percentage specified in the definition of Required Lenders (it being understood
that, with the consent of the Required Lenders, additional extensions of credit
pursuant to this Agreement may be included in the determination of the Required
Lenders on substantially the same basis as the extensions of Revolving Loan
Commitments are included on the Effective Date) or (v) consent to the
assignment or transfer by the Borrower of any of its rights and obligations under
this Agreement; provided, further, that no such change, waiver,
discharge or termination shall (1) increase the Revolving Loan Commitments
of any Lender over the amount thereof then in effect without the consent of
such Lender (it being understood that waivers or modifications of conditions
precedent, covenants, Defaults or Events of Default or of a mandatory reduction
in the Total Revolving Commitment shall not constitute an increase of the
Revolving Loan Commitment of any Lender, and that an increase in the available
portion of any Revolving Loan Commitment of any Lender shall not constitute an
increase of the Revolving Loan Commitment of such Lender), (2) without the
consent of each Issuing Lender, amend, modify or waive any provision of Section
2 or alter its rights or obligations with respect to Letters of Credit,
(3) without the written consent of the Swingline Lender, alter the
Swingline Lender’s rights or obligations with respect to Swingline Loans,
(4) without the written consent of the Administrative Agent, amend, modify
or waive any provision of Section 10 or any other provision as same relates to
the rights or obligations of the Administrative Agent or (5) without the
written consent of Collateral Agent, amend, modify or waive any provision relating
to the rights or obligations of the Collateral Agent.

(b)           If, in connection with
any proposed change, waiver, discharge or termination of or to any of the
provisions of this Agreement as contemplated by clauses (i) through (iii),
inclusive, of the first proviso to Section 13.12(a), the consent of the
Required Lenders is obtained but the consent of one or more of such other
Lenders whose consent is required is not obtained, then the Borrower shall have
the right, so long as all non-consenting Lenders whose individual consent is
required are treated as described in either clause (A) or (B) below, to either
(A) replace each such non-consenting Lender or Lenders (or, at the option of
the Borrower, if the respective Lender’s consent is required with respect to
less than all Tranches of Loans (or related Revolving Loan Commitments), to
replace only the Revolving Loan Commitments and/or Loans of the respective
non-consenting Lender which gave rise to the need to obtain such Lender’s
individual consent) with one or more Replacement Lenders pursuant to Section
2.12 so long as at the time of such replacement, each such Replacement Lender
consents to the proposed change, waiver, discharge or termination or (B)
terminate such non-consenting Lender’s Revolving Loan Commitment (if such
Lender’s consent is required as a result of its Revolving Loan Commitment)
and/or repay each Tranche of outstanding Loans of such Lender which gave rise
to the need to obtain such Lender’s consent and/or cash collateralize its
applicable RL Percentage of the Letter of Credit of Outstandings, in accordance
with Sections 4.02(b), provided that, unless the Revolving Loan
Commitments which are terminated and Loans which are repaid pursuant to
preceding clause (B) are immediately replaced in full at such time through
the addition of new Lenders or the increase of the Revolving Loan Commitments
and/or outstanding Loans of existing Lenders (who in each case must
specifically consent thereto), then in the case of any action pursuant to
preceding clause (B), the Required Lenders (determined after giving effect
to the proposed action) shall specifically consent thereto, provided,
further, that the Borrower shall not have the right to replace a Lender,
terminate its Revolving Loan Commitment or repay its Loans 

 95
 

 

solely as a result of the exercise of such
Lender’s rights (and the withholding of any required consent by such Lender)
pursuant to the second proviso to Section 13.12(a).

13.13.      Survival.  All indemnities set forth herein including in
Sections 2.09, 2.10, 5.04, 12.06 and 13.01 shall survive the execution,
delivery and termination of this Agreement and the Notes and the making and
repayment of the Obligations.

13.14.      Domicile of Loans.  Each Lender may transfer and carry its Loans
at, to or for the account of any office, Subsidiary or Affiliate of such
Lender.  Notwithstanding anything to the
contrary contained herein, to the extent that a transfer of Loans pursuant to
this Section 13.14 would, at the time of such transfer, result in
increased costs under Section 2.09, 2.10, 3.06 or 5.04 from those being
charged by the respective Lender prior to such transfer, then the Borrower
shall not be obligated to pay such increased costs (although the Borrower shall
be obligated to pay any other increased costs of the type described above
resulting from changes after the date of the respective transfer).

13.15.      Register.  The Borrower hereby designates the
Administrative Agent to serve as its agent, solely for purposes of this Section
13.15, to maintain a register (the “Register”) on which it will record
the Revolving Loan Commitments from time to time of each Lender, the Loans made
by each Lender and each repayment in respect of the principal amount of the
Loan of each Lender.  Failure to make any
such recordation, or any error in such recordation, shall not affect the
Borrower’s obligations in respect of such Loan. 
Entries in the Register shall be conclusive in the absence of manifest
error, and the Borrower, the Administrative Agent and the Lenders may treat
each person whose name is recorded in the Register pursuant to the terms hereof
as Lender hereunder for all purposes of this Agreement, notwithstanding notices
to the contrary.  The transfer of the
rights to the principal of, and interest on, any Loan shall not be effective
until such transfer is recorded on the Register maintained by the
Administrative Agent with respect to ownership of such Revolving Loan
Commitments and Loans and prior to such recordation all amounts owing to the
transferor with respect to such Revolving Loan Commitments and Loans shall
remain owing to the transferor.  The
registration of assignment or transfer of all or part of any Loan shall be
recorded by the Administrative Agent on the Register only upon the acceptance
by the Administrative Agent of a properly executed and delivered Assignment and
Assumption Agreement pursuant to Section 13.04(b).  Coincident with the delivery of such an
Assignment and Assumption Agreement to the Administrative Agent for acceptance
and registration of assignment or transfer of all or part of a Loan, or as soon
thereafter as practicable, the assigning or transferor Lender shall surrender
the Note (if any) evidencing such Loan, and thereupon one or more new Notes in
the same aggregate principal amount shall be issued to the assigning or
transferor Lender and/or the new Lender at the request of any such Lender.  The Borrower agrees to indemnify the
Administrative Agent from and against any and all losses, claims, damages and
liabilities of whatsoever nature which may be imposed on, asserted against or
incurred by the Administrative Agent in performing its duties under this
Section 13.15.  The Register shall be
available for inspection by the Borrower, the Collateral Agent and any Lender
(with respect to its interest only) at any reasonable time and from time to
time upon reasonable notice.

 96
 

 

13.16.      Confidentiality.

(a)           Subject to the
provisions of clause (b) of this Section 13.16, the Lender agrees that it will
use its reasonable efforts not to disclose without the prior consent of the
Borrower (other than to its employees, auditors, advisors or counsel or to
another Lender if such Lender or such Lender’s holding or parent company in its
sole discretion determines that any such party should have access to such
information, provided such Persons shall be subject to the provisions of this
Section 13.16 to the same extent as such Lender) any information with respect
to the Borrower or any of its Subsidiaries which is now or in the future
furnished pursuant to this Agreement or any other Credit Document, provided
that any Lender may disclose any such information (i) as has become generally
available to the public other than by virtue of a breach of this Section
13.16(a) by such Lender, (ii) as may be required or appropriate in any report,
statement or testimony submitted to any municipal, state or Federal regulatory
body having or claiming to have jurisdiction over such Lender or to the Federal
Reserve Board or the Federal Deposit Insurance Corporation or similar organizations
(whether in the United States or elsewhere) or their successors, (iii) as may
be required or appropriate in respect to any summons or subpoena or in
connection with any litigation, (iv) in order to comply with any law, order,
regulation or ruling applicable to such Lender, (v) to the Administrative Agent
or the Collateral Agent, (vi) to any direct or indirect contractual
counterparty in any swap, hedge or similar agreement (or to any such
contractual counterparty’s professional advisor), so long as such contractual
counterparty (or such professional advisor) agrees to be bound by the
provisions of this Section 13.16 and (vii) to any prospective or actual
transferee or participant in connection with any contemplated transfer or
participation of any of the Notes or Revolving Loan Commitments or any interest
therein by such Lender, provided that such prospective transferee agrees
to be bound by the confidentiality provisions contained in this Section 13.16.

(b)           The Borrower hereby
acknowledges and agrees that each Lender may share with any of its affiliates,
and such affiliates may share with such Lender, any information related to the
Borrower or any of its Subsidiaries (including any non-public customer
information regarding the creditworthiness of the Borrower and its
Subsidiaries), provided such Persons shall be subject to the provisions of this
Section 13.16 to the same extent as such Lender.

13.17.      Special Provisions
Regarding Pledges of Equity Interests in, and Promissory Notes Owed by, Persons
Not Organized in the United States. 
The parties hereto acknowledge and agree that the provisions of the
various Security Documents executed and delivered by the Credit Parties require
that, among other things, all promissory notes executed by, and capital stock
and other Equity Interests in, various Persons owned by the Credit Parties
(subject to the limitations set forth therein) be pledged, and delivered for
pledge, pursuant to the Security Documents. 
The parties hereto further acknowledge and agree that each Credit Party
shall be required to take all actions under the laws of the jurisdiction in
which such Credit Party is organized to create and perfect all security
interests granted pursuant to the various Security Documents and to take all
actions under the laws of the United States and any State, territory or
district thereof to perfect the security interests in the capital stock and
other Equity Interests of, and promissory notes issued by, any Person organized
under the laws of said jurisdictions (in each case, to the extent said capital
stock, other Equity Interests or promissory notes are owned by any Credit
Party).  Except as provided in the
immediately preceding sentence, to the extent any Security Document requires or
provides for the pledge of promissory notes issued by, or capital stock or 

 97
 

 

other Equity Interests
in, any Person organized under the laws of a jurisdiction other than the United
States or any State, territory or district thereof, it is acknowledged that, as
of the Initial Borrowing Date, no actions have been required to be taken to
create or perfect, under local law of the jurisdiction of the Person who issued
the respective promissory notes or whose capital stock or other Equity
Interests are pledged, under the Security Documents.  All conditions and representations contained
in this Agreement and the other Credit Documents shall be deemed modified to
the extent necessary to effect the foregoing and so that same are not violated
by reason of the failure to take actions under local law (but only with respect
to capital stock of, other Equity Interests in, and promissory notes issued by,
Persons organized under laws of jurisdictions other than the United States and
any State, territory and district thereof) not required to be taken in
accordance with the provisions of this Section 13.17.

13.18.      Integration.  This Agreement and the other Credit Documents
represent the agreement of the Borrower, the Administrative Agent, the
Arrangers and the Lenders with respect to the subject matter hereof, and there
are no promises, undertakings, representations or warranties by the
Administrative Agent, the Arrangers or any Lender relative to the subject
matter hereof not expressly set forth or referred to herein or in the other
Credit Documents.  The Credit Documents
supersede all prior agreements (except the Fee Letter, dated as of September
29, 2006 among the Borrower, Deutsche Bank Trust Company Americas and Deutsche
Bank Securities Inc. (the “Fee Letter”)) and understandings, if any,
relating to the subject matter hereof and thereof.

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

*              *              *

 98

 

IN WITNESS WHEREOF, the parties hereto have caused
their duly authorized officers to execute and deliver this Agreement as of the
date first above written.

	
  

  	
  SHUFFLE MASTER, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark L. Yoseloff

  
	
   

  	
   

  	
  Name: Mark L. Yoseloff

  
	
   

  	
   

  	
  Title: CEO & COB

  

 

 S-1
 

 

 

	
  

  	
  DEUTSCHE BANK TRUST COMPANY

  AMERICAS,

  as Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven P. Lapham

  
	
   

  	
   

  	
  Name: Steven P. Lapham

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mary Kay Coyle

  
	
   

  	
   

  	
  Name: Mary Kay Coyle

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST COMPANY

  AMERICAS,

  
	
   

  	
  Individually and as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven P. Lapham

  
	
   

  	
   

  	
  Name: Steven P. Lapham

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mary Kay Coyle

  
	
   

  	
   

  	
  Name: Mary Kay Coyle

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK SECURITIES INC.,

  
	
   

  	
  as Joint Lead Arranger and Book Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven P. Lapham

  
	
   

  	
   

  	
  Name: Steven P. Lapham

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mary Kay Coyle

  
	
   

  	
   

  	
  Name: Mary Kay Coyle

  
	
   

  	
   

  	
  Title: Managing Director

  

 

 S-2
 

 

 

	
  

  	
  WELLS FARGO BANK, N.A.,

  
	
   

  	
  as Syndication Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Virginia S. Christenson

  
	
   

  	
   

  	
  Name: Virginia S. Christenson

  
	
   

  	
   

  	
  Title: Vice President/Relationship Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, N.A.,

  
	
   

  	
  as Joint Lead Arranger and Book Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Virginia S. Christenson

  
	
   

  	
   

  	
  Name: Virginia S. Christenson

  
	
   

  	
   

  	
  Title: Vice President/Relationship Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, N.A.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Virginia S. Christenson

  
	
   

  	
   

  	
  Name: Virginia S. Christenson

  
	
   

  	
   

  	
  Title: Vice President/Relationship Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION,

  as Lender

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Mark A. Smith

  
	
   

  	
   

  	
  Name: Mark A. Smith

  
	
   

  	
   

  	
  Title: Assistant Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COMERICA WEST INCORPORATED,

  as Lender

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Fatima Arshad

  
	
   

  	
   

  	
  Name: Fatima Arshad

  
	
   

  	
   

  	
  Title: Corporate Banking Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COMMUNITY BANK OF NEVADA,

  as Lender

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Bruce Ford

  
	
   

  	
   

  	
  Name: Bruce Ford

  
	
   

  	
   

  	
  Title: Executive Vice President

  
	
   

  	
   

  	
  Chief Credit Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AMALGAMATED BANK,

  as Lender

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ J. Bruce Meredith

  
	
   

  	
   

  	
  Name: J. Bruce Meredith

  
	
   

  	
   

  	
  Title: First Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UNION BANK OF CALIFORNIA, N.A.,

  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Clifford F. Cho

  
	
   

  	
   

  	
  Name: Clifford F. Cho

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ALLIED IRISH BANKS, P.L.C.,

  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ John F. Farrace

  
	
   

  	
   

  	
  Name: John F. Farrace

  
	
   

  	
   

  	
  Title: Co-Head Leverage Finance

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Eanna P. Mulkere

  
	
   

  	
   

  	
  Name: Eanna P. Mulkere

  
	
   

  	
   

  	
  Title: Assistant Vice President

  

 

 

 S-3

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