Document:

Exhibit
10.19

 

THIRD AMENDMENT TO
CREDIT AGREEMENT

 

THIS THIRD AMENDMENT TO CREDIT AGREEMENT dated as of January 29,
2008 (this “Agreement”) is entered into among GFI GROUP INC., a Delaware
corporation (“GFI”), GFI HOLDINGS LIMITED, a company incorporated under
the laws of England and Wales (the “Foreign Borrower”; together with
GFI, the “Borrowers”), the Guarantors, the Lenders party hereto and BANK
OF AMERICA, N.A., as Administrative Agent (in such capacity, the “Administrative
Agent”).  All capitalized terms used
herein and not otherwise defined herein shall have the meanings given to such
terms in the Credit Agreement (as defined below).

 

RECITALS

 

WHEREAS,
the Borrowers, the Guarantors, the Lenders and the Administrative Agent entered
into that certain Amended and Restated Credit Agreement dated as of February 24,
2006 (as amended and modified from time to time, the “Credit Agreement”);

 

WHEREAS,
GFI intends to issue senior secured notes;

 

WHEREAS,
the Borrowers have requested and the Lenders have agreed to amend certain terms
of the Credit Agreement, such terms amended to include, among other things, to allow
the issuance of senior secured notes, in each case subject to the terms and
conditions set forth below;

 

NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

1.                                       Amendments. The Credit Agreement is hereby amended as follows:

 

(a)                                  Section 1.01 of the Credit Agreement is
hereby amended by adding the following new definitions in appropriate
alphabetical order:

 

“Collateral Agent” means Bank of America in its
capacity as collateral agent under any of the Collateral Documents or any
successor collateral agent.

 

“Intercreditor Agreement” means that certain
Intercreditor and Collateral Agency Agreement among GFI, the Domestic Guarantors,
the Administrative Agent, the holders of the 2008 Senior Notes and the
Collateral Agent, as amended or modified from time to time.

 

“Third Amendment” means the Third Amendment to
Credit Agreement dated as of January 29, 2008 by and among Borrowers, the Guarantors, the Lenders and
the Administrative Agent.

 

“Third Amendment
Effective Date” means January 29, 2008.

 

“2008
Senior Note Documents” means the 2008 Senior Notes, the 2008 Senior Note
Purchase Agreement and all other documents executed and delivered in respect of
the 2008 Senior Notes, each of which containing terms and conditions substantially

 

 

consistent with the terms
of the “Senior Note Term Sheet” attached as Exhibit B to the Third
Amendment.

 

“2008
Senior Note Purchase Agreement” means that certain Note Purchase Agreement
among GFI, the Domestic Guarantors and the institutional investors party
thereto, containing terms and conditions substantially consistent with the
terms of the “Senior Note Term Sheet” attached as Exhibit B to the Third
Amendment.

 

“2008
Senior Notes” means those certain senior secured notes of GFI in an
aggregate principal amount of up to $150,000,000 pursuant to the 2008 Senior
Note Purchase Agreement containing terms and conditions substantially
consistent with the terms of the “Senior Note Term Sheet” attached as Exhibit B
to the Third Amendment.

 

(b)                                 The definition of “Aggregate
Revolving Commitments” in Section 1.01 of the Credit Agreement is hereby
amended to read as follows:

 

“Aggregate
Revolving Commitments” means the Revolving Commitments of all the
Lenders.  The amount of the Aggregate
Revolving Commitments in effect on the Third Amendment Effective Date is TWO
HUNDRED SIXTY-FIVE MILLION DOLLARS ($265,000,000).

 

(c)                                  The
definition of “Change of Control” in Section 1.01 of the Credit Agreement
is hereby amended by deleting the period at the end of subsection (c) thereof
and replacing it with the following text “; or” and adding the following
subsection (d) at the end thereof:

 

(d)                                 for
so long as any Indebtedness is outstanding under the 2008 Senior Note
Documents, the occurrence of a “Change of Control” (or any comparable term)
under, and as defined in the 2008 Senior Note Documents.

 

(d)                                 The
definition of “Collateral” in Section 1.01 of the Credit Agreement is
hereby amended to read as follows:

 

“Collateral”
means a collective reference to all personal property with respect to which
Liens in favor of either the Administrative Agent or the Collateral Agent are
purported to be granted pursuant to and in accordance with the terms of the
Collateral Documents.

 

(e)                                  The
following sentence is hereby added at the end of the definition of “Domestic
Pledge Agreement” in Section 1.01 of the Credit Agreement to read as
follows:

 

All rights and
obligations of the Administrative Agent under the Domestic Pledge Agreement
have been assigned to the Collateral Agent, for the benefit of the holders of
the Obligations.

 

(f)                                    The
following sentence is hereby added at the end of the definition of “Domestic
Security Agreement” in Section 1.01 of the Credit Agreement to read as
follows:

 

All rights and
obligations of the Administrative Agent under the Domestic Security Agreement
have been assigned to the Collateral Agent, for the benefit of the holders of
the Obligations.

 

 

(g)                                 The
last sentence of the definition of “Foreign Obligations” in Section 1.01
of the Credit Agreement is hereby amended to read as follows:

 

The
foregoing shall also include any Swap Contract between any Foreign Loan Party
and any Lender or Affiliate of a Lender that is entered into in the ordinary
course of business for mitigating risks and not for speculative purposes and
all obligations under any Treasury Management Agreement between any Foreign
Loan Party and any Lender or an Affiliate of a Lender.

 

(h)                                 The
definition of “Loan Documents” in Section 1.01 of the Credit Agreement is
hereby amended to read as follows:

 

“Loan
Documents” means this Agreement, the Intercreditor Agreement, each Note,
each Letter of Credit, each Letter of Credit Application, each Joinder
Agreement, the Collateral Documents, each Issuer Document, each Request for
Credit Extension, each Compliance Certificate, the Fee Letter and each other
document, instrument or agreement from time to time executed by GFI or any of
its Subsidiaries or any Responsible Officer thereof and delivered in connection
with this Agreement.

 

(i)                                     The
first parenthetical in clause (c) of the definition of “Net Cash Proceeds”
in Section 1.01 of the Credit Agreement is hereby amended to read as
follows:

 

(ranking senior to any
Lien of the Administrative Agent or the Collateral Agent, as applicable)

 

(j)                                     Subclause
(vii) of the definition of “Permitted Acquisition” in Section 1.01 of
the Credit Agreement is hereby amended to read as follows:

 

(vii) after
giving effect to such Acquisition, (a) the aggregate cash consideration
(including any assumption of liabilities) for such Acquisition shall not exceed
$75,000,000 and (b) the aggregate consideration (including any cash and
non-cash consideration, promissory notes, assumption of liabilities, and any
earn-out obligations) for all Acquisitions in any fiscal year shall not exceed
$150,000,000; provided, however, if the Consolidated Leverage
Ratio (calculated on a Pro Forma Basis after giving effect to such Acquisition)
is less than 1.5 to 1.0, there shall be no limit on the size of any such
Acquisition and the amount of consideration paid for any such Acquisition shall
not count toward or be limited by, any of the baskets for Acquisitions
described above.

 

(k)                                  The
last sentence of the definition of “Obligations” in Section 1.01 of the
Credit Agreement is hereby amended to read as follows:

 

The
foregoing shall also include any Swap Contract between any Loan Party and any
Lender or Affiliate of a Lender that is entered into in the ordinary course of
business for mitigating risks and not for speculative purposes and all
obligations under any Treasury Management Agreement between any Loan Party and
any Lender or an Affiliate of any Lender.

 

(l)                                     The definition of “Securitization Transaction”
in Section 1.01 of the Credit Agreement is hereby amended to read as
follows:

 

2

 

“Securitization Transaction” means any
financing transaction or series of financing transactions (including factoring
arrangements) pursuant to which GFI or any Subsidiary may sell, convey or
otherwise transfer, or grant a security interest in, accounts, payments,
receivables, rights to future lease payments or residuals or similar rights to
payment to a special purpose subsidiary or affiliate of GFI (not including any intercompany
financings in the ordinary course of business among Subsidiaries of GFI that do
not involve a financing transaction with a third party).

 

(m)                               The first paragraph of Section 2.02(f) of
the Credit Agreement is hereby amended to read as follows:

 

(f)                                    GFI
may at any time and from time to time, after the Third Amendment Effective Date,
upon prior written notice by GFI to the Administrative Agent, increase the
Aggregate Revolving Commitments by up to ONE HUNDRED MILLION DOLLARS ($100,000,000)
with additional Revolving Commitments from any existing Lender or new Revolving
Commitments from any other Person selected by GFI and approved by the
Administrative Agent (not to be unreasonably withheld); provided that:

 

(i)                                     the Consolidated
Leverage Ratio (calculated on a Pro Forma Basis after giving effect to any such
increase) is less than 2.0 to 1.0;

 

(ii)                                  any
such increase shall be in a minimum principal amount of $5,000,000 and in
integral multiples of $1,000,000 in excess thereof;

 

(iii)                               no Default or Event of
Default shall be continuing at the time of any such increase;

 

(iv)                              no
existing Lender shall be under any obligation to increase its Revolving
Commitment and any such decision whether to increase its Revolving Commitment
shall be in such Lender’s sole and absolute discretion;

 

(v)                                 (A) any
new Lender shall join this Agreement by executing such joinder documents
reasonably required by the Administrative Agent and/or (B) any existing
Lender electing to increase its Revolving Commitment shall have executed a
commitment agreement reasonably satisfactory to the Administrative Agent; and

 

(vi)                              as a
condition precedent to such increase, GFI shall deliver to the Administrative
Agent a certificate of each Loan Party dated as of the date of such increase
(in sufficient copies for each Lender) signed by a Responsible Officer of such
Loan Party (A) certifying and attaching the resolutions adopted by such
Loan Party approving or consenting to such increase, (B) containing a
reasonably detailed calculation of the Consolidated Leverage Ratio as of the
most recent fiscal quarter end for which GFI has delivered financial statements
pursuant to Section 7.01(b) after giving effect to such increase on a
Pro Forma Basis and (C) in the case of GFI, certifying that, before and
after giving effect to such increase, (1) the representations and
warranties contained in Article VI and the other Loan Documents are
true and correct in all material respects on and as of the date of such
increase, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they are true and correct
as of such earlier date, and except that for purposes of this Section 2.02(f),
the representations and warranties contained in subsections (a) and (b) of
Section 6.05 shall be deemed to refer to 

 

3

 

the most recent
statements furnished pursuant to clauses (a) and (b), respectively, of Section 7.01,
and (2) no Default or Event of Default exists.

 

(n)                                 Section 4.02(d)(iv) of the Credit
Agreement is hereby amended to read as follows:

 

(iv)                              any Lien granted to, or in favor of, the Administrative Agent, the
Collateral Agent or any Lender or Lenders as security for any of the
Obligations shall fail to attach or be perfected; or

 

(o)                                 The final paragraph of Section 4.02 of
the Credit Agreement is hereby amended to read as follows:

 

With respect to its obligations hereunder, each
Guarantor hereby expressly waives diligence, presentment, demand of payment,
protest and all notices whatsoever, and any requirement that the Administrative
Agent, the Collateral Agent or any Lender exhaust any right, power or remedy or
proceed against any Person under any of the Loan Documents, any Swap Contract
or any Treasury Management Agreement between any Loan Party and any Lender, or
any Affiliate of a Lender, or any other agreement or instrument referred to in
the Loan Documents, such Swap Contracts or such Treasury Management Agreements,
or against any other Person under any other guarantee of, or security for, any
of the Obligations.

 

(p)                                 Section 7.02(e) of the Credit
Agreement is hereby amended to read as follows:

 

(e)                                  promptly
after the furnishing thereof, copies of any statement or report furnished to
any holder of debt securities of any Loan Party or any Subsidiary thereof (including,
without limitation, any holder of the 2008 Senior Notes) pursuant to the
terms of any indenture, loan or credit or similar agreement and not otherwise
required to be furnished to the Lenders pursuant to Section 7.01 or
any other clause of this Section 7.02;

 

(q)                                 Section 7.02 of the Credit Agreement is hereby
amended by deleting the period at the end of subsection 7.02(h) and
replacing it with the following text “; and” and by adding a new subsection
7.02(i) at the end of Section 7.02 of the Credit Agreement which
shall read as follows:

 

(i)                                     promptly after the effectiveness of the 2008
Senior Note Documents,  fully-executed
copies of the 2008 Senior Note Documents, certified by a Responsible Officer of
GFI as true and complete.

 

(r)                                    Section 7.12(b) of
the Credit Agreement is hereby amended to read as follows:

 

(b)                                 Promptly,
and in any event, not later than forty-five (45) days, (i) after the
acquisition or formation of any Domestic Subsidiary that is a Material
Subsidiary (other than a Regulated Subsidiary) or (ii) the date on which
any Domestic Subsidiary becomes a Material Subsidiary (other than a Regulated
Subsidiary), cause such Person to (A) become a Domestic Guarantor by
executing and delivering to the Administrative Agent a Joinder Agreement or
such other documents as the Administrative Agent shall reasonably deem
appropriate for such purpose, and (B) deliver to the Administrative Agent or
the Collateral Agent, as applicable, documents of the types referred to in Sections
5.01(g) and (h) and favorable opinions of counsel to such
Person (which shall cover, among other things, the legality, validity, binding
effect and enforceability of the documentation referred to in clause (A)), all
in form, content and scope reasonably 

 

4

 

satisfactory to the
Administrative Agent and the Collateral Agent and (C) become a party to
the Intercreditor Agreement by executing and delivering to the Administrative
Agent a joinder agreement to the Intercreditor Agreement, all in form and
substance reasonably satisfactory to the Administrative Agent.

 

(s)                                  Section 7.12(d) of
the Credit Agreement is hereby amended to read as follows:

 

(d)                                 If at any time any Domestic Subsidiary that is
not a Domestic Guarantor provides a guarantee of (i) any Person’s
obligations with respect to any Subordinated Indebtedness or (ii) any
Indebtedness permitted pursuant to Section 8.03(i), then promptly
(and in any event within five (5) days), cause such Subsidiary to (A) become
a Domestic Guarantor by executing and delivering to the Administrative Agent a
Joinder Agreement or such other documents as the Administrative Agent shall
reasonably deem appropriate for such purpose, and (B) deliver to the
Collateral Agent such security documents as the Collateral Agent shall
reasonably request (consistent with those provided by Domestic
Subsidiaries on the Closing Date) and such
documents of the types referred to in Section 5.01(g) and
favorable opinions of counsel to such Person (which shall cover, among other
things, the legality, validity, binding effect and enforceability of the
documentation referred to in clause (A)), all in form, content and scope
reasonably satisfactory to the Administrative Agent and the Collateral Agent.

 

(t)                                    A new subsection 7.12(f) is hereby added
at the end of Section 7.12 of the Credit Agreement and shall read as
follows:

 

(f)                                    If
at any time any Domestic Subsidiary that is not a Domestic Guarantor provides a
guarantee of any Person’s obligations with respect to the 2008 Senior Notes,
then promptly (and in any event within five (5) days), cause such Domestic
Subsidiary to (A) become a Domestic Guarantor by executing and delivering
to the Administrative Agent a Joinder Agreement or such other documents as the
Administrative Agent shall reasonably deem appropriate for such purpose, and (B) deliver
to the Collateral Agent such security documents as the Collateral Agent shall
reasonably request (consistent with those provided by Domestic Subsidiaries on
the Closing Date) and such documents of the types referred to in Section 5.01(g) and
favorable opinions of counsel to such Person (which shall cover, among other
things, the legality, validity, binding effect and enforceability of the
documentation referred to in clause (A)), all in form, content and scope
reasonably satisfactory to the Administrative Agent and the Collateral Agent.

 

(u)                                 All references to “Administrative Agent” in Section 7.14(a) of
the Credit Agreement are hereby replaced with references to the “Collateral
Agent”.

 

(v)                                 Section 7.15 of the Credit Agreement is
hereby amended to read as follows:

 

7.15                           Insurance Certificates.

 

Provide the Administrative Agent and the Collateral Agent with copies of insurance policies or
certificates of insurance of the Loan Parties evidencing liability and casualty
insurance meeting the requirements set forth in the Loan Documents, including,
but not limited to, naming the Collateral Agent or the Administrative Agent, as applicable, as additional insured (in
the case of liability insurance) or loss payee (in the case of hazard
insurance) on behalf of the Lenders.

 

5

 

(w)                               Section 8.01 of the Credit Agreement is hereby amended by deleting
the period at the end of subsection (p) thereof and replacing it with the
following text “; and”, and by adding a new subsection 8.01(q) at the end
of Section 8.01 of the Credit Agreement which shall read as follows:

 

(q)                                 Liens which secure the Indebtedness of GFI
and the Domestic Guarantors under the 2008 Senior Note Documents; provided
that such Liens remain subject to the terms of the Intercreditor Agreement.

 

(x)                                   Section 8.02 of the Credit Agreement is
hereby amended by deleting the period at the end of subsection (m) thereof
and replacing it with the following text “; and”, and by adding a new
subsection (n) at the end of Section 8.02 of the Credit Agreement
which shall read as follows:

 

(n)  an equity
Investment of $146,000,000 by GFI in GFI TP Holdings Pte. Ltd., the proceeds of
which will fund an intercompany loan of $146,000,000 by GFI TP Holdings Pte.
Ltd. to GFI TP Ltd. to be made on or near the Third Amendment Effective Date.

 

(y)                                 Section 8.03(e) of the Credit
Agreement is hereby amended to read as follows:

 

(e)                                  purchase money Indebtedness (including
obligations in respect of Capital Leases or Synthetic Leases) hereafter
incurred by GFI or any of its Subsidiaries to finance the construction,
improvement or purchase of fixed assets and renewals, refinancings and
extensions thereof, provided that (i) the total of all such Indebtedness
for all such Persons taken together shall not exceed an aggregate principal
amount of $50,000,000 at any one time outstanding; (ii) such Indebtedness
when incurred shall not exceed the purchase price of the asset(s) financed;
and (iii) no such Indebtedness shall be refinanced for a principal amount
in excess of the principal balance outstanding thereon at the time of such
refinancing;

 

(z)                                   Section 8.03 of the Credit Agreement is
hereby amended by deleting the period at the end of subsection (n) thereof
and replacing it with the following text “; and”, and by adding a new
subsection 8.03(o) at the end of Section 8.03 of the Credit Agreement
which shall read as follows:

 

(o)                                 Indebtedness of GFI
and the Domestic Guarantors under the 2008 Senior Note Documents, in an
aggregate principal amount not to exceed $150,000,000.

 

(aa)                            Section 8.09(a) of the Credit Agreement is hereby amended to
read as follows:

 

(a)                                  Enter
into, or permit to exist, any Contractual Obligation that encumbers or
restricts on the ability of any such Person to (i) pay dividends or make
any other distributions to any Loan Party
on its Capital Stock or with respect to any other interest or participation in,
or measured by, its profits, (ii) pay any Indebtedness or other obligation
owed to any Loan Party, (iii) make
loans or advances to any Loan Party,
(iv) sell, lease or transfer any of its Property to any Loan Party, (v) pledge its Property pursuant to the Loan Documents or any
renewals, refinancings, exchanges, refundings or extension thereof or (vi) act as a Loan Party pursuant to the Loan Documents
or any renewals, refinancings, exchanges, refundings or extension thereof,
except (in respect of any of the matters referred to in clauses (i)-(iv) above)
for (1) this Agreement and the other Loan

 

6

 

Documents, (2) any document or instrument governing Indebtedness
incurred pursuant to Sections 8.03(e) or (h),  provided
that any such restriction contained therein relates only to the asset or assets
constructed or acquired in connection therewith, (3) any Permitted Lien or
any document or instrument governing any Permitted Lien, provided that
any such restriction contained therein relates only to the asset or assets
subject to such Permitted Lien, (4) customary restrictions and conditions
contained in any agreement relating to the sale of any Property permitted under
Section 8.05 pending the consummation of such sale, (5) customary
nonassignment provisions as to the assets financed in any lease governing a
leasehold interest or in any other contracts which are not material to the
business and operations of GFI and its Subsidiaries, (6) the 2008 Senior
Note Documents or (7) restrictions or conditions imposed by Laws.

 

(bb)                          The language preceding the exceptions in Section 8.09(b) of
the Credit Agreement is hereby amended to read as follows:

 

Enter into, or permit to exist, any Contractual Obligations that
prohibits or otherwise restricts the existence of any Lien upon any of its
Property in favor of the Administrative Agent or the Collateral Agent, as
applicable (for the benefit of the Lenders or the holders of the 2008 Senior
Notes, as applicable), for the purpose of securing the Obligations, whether now
owned or hereafter acquired, or requiring the grant of any security for any
obligation if such Property is given as security for the Obligations,

 

(cc)                            Section 8.11(a) of the Credit
Agreement is hereby amended to read as follows:

 

(a)                                  Consolidated Capital. 
Permit Consolidated Capital at any time to be less than the sum of
$300,000,000, increased on a cumulative basis as of the end of each fiscal
quarter, commencing with the fiscal quarter ending March 31, 2008 by an
amount equal to 40% of Consolidated Net Income (to the extent positive) for the
fiscal quarter then ended plus 100% of the amount of all Equity
Issuances after the Third Amendment Effective Date and during such fiscal
quarter as evidenced on the books of GFI in accordance with GAAP (less the
amount of equity redemptions to the extent permitted by Section 8.06).

 

(dd)                          Section 8.11(b) of the Credit
Agreement is hereby amended to read as follows:

 

(b)                                 Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio as of the
end of each fiscal quarter of GFI to be greater than 2.50 to 1.0.

 

(ee)                            Section 8.11(d) of the Credit
Agreement is hereby amended to read as follows:

 

(d)                                 Consolidated EBITDA. 
Permit Consolidated
EBITDA, as of the end of each fiscal quarter of GFI for the twelve month period
ending on such date to be less than $100,000,000.

 

(ff)                                Section 8.15(a) of the Credit
Agreement is hereby amended to read as follows:

 

(a)                                  Amend or modify any of the terms of any
Indebtedness, including Indebtedness under the 2008 Senior Note Documents, of
GFI or any Subsidiary (other than Indebtedness arising under the Loan
Documents) if such amendment or modification would (i) add or change any
terms in a manner materially adverse to GFI or any Subsidiary, (ii) add or
change any terms in a manner materially adverse to the Lenders or (iii) shorten
the final 

 

7

 

maturity
or average life to maturity or require any payment to be made sooner than
originally scheduled or increase the interest rate applicable thereto, except
to the extent the incurrence of such Indebtedness as so amended would be
permitted hereunder.

 

(gg)                          A new subsection
9.01(o) is hereby added at the end of Section 9.01 of the Credit Agreement
and shall read as follows:

 

                                                (o)                                 2008 Senior Notes.  There shall occur an “Event of Default” (or
any comparable term) under, and as defined in, the 2008 Senior Note Documents

 

(hh)                          Section 9.01(k) of
the Credit Agreement is hereby amended to read as follows:

 

(k)                                  Invalidity
of Loan Documents.  Any Loan
Document, at any time after its execution and delivery and for any reason other
than as expressly permitted hereunder or satisfaction in full of all the
Obligations, ceases to be in full force and effect or fails to give the
Administrative Agent, the Collateral Agent and/or the Lenders the Liens, material
rights, powers and privileges purported to be created by the Loan Documents; or
any Loan Party or any other Person contests in any manner the validity or
enforceability of any Loan Document; or any Loan Party denies that it has any
or further liability or obligation under any Loan Documents, or purports to
revoke, terminate or rescind any Loan Document; or

 

(ii)                                  Section 10.01
of the Credit Agreement is hereby amended to read as follows:

 

10.01                     Appointment
and Authority.

 

Each
of the Lenders and each L/C Issuer hereby irrevocably appoints Bank of America
to act on its behalf as the Administrative Agent and the Collateral Agent
hereunder and under the other Loan Documents and authorizes the Administrative
Agent and the Collateral Agent to take such actions on its behalf and to
exercise such powers as are delegated to the Administrative Agent and the
Collateral Agent by the terms hereof or thereof, together with such actions and
powers as are reasonably incidental thereto. 
Except as expressly provided in Section 10.06, the
provisions of this Article are solely for the benefit of the
Administrative Agent, the Collateral Agent, the Lenders and the L/C Issuers,
and neither the Borrowers nor any other Loan Party shall have rights as a third
party beneficiary of any of such provisions. 
Each of the rights, benefits and obligations of the Administrative Agent
contained in this Article X and in Article XI will, where appropriate,
also be afforded to the Collateral Agent, and any reference to the
Administrative Agent in this Article X and in Article XI also shall
be deemed, where appropriate, a reference to the Collateral Agent.

 

(jj)                                  Clause
(ii) in the second proviso contained in Section 11.01 of the Credit
Agreement is hereby amended to read as follows:

 

(ii)                                  no
amendment, waiver or consent shall, unless in writing and signed by the
Administrative Agent and/or the Collateral Agent, as applicable, affect the
rights or duties of the Administrative Agent or the Collateral Agent, as
applicable, under this Agreement or any other Loan Document; and

 

(kk)                            Schedule
2.01 of the Credit Agreement is hereby amended to read as provided on Schedule
2.01 attached hereto.

 

8

 

2.                                       Conditions Precedent.  This
Agreement shall be effective upon the following conditions precedent:

 

(a)                                  receipt by the Administrative Agent of counterparts
of this Agreement, duly executed by the Borrowers, the Guarantors, the Required
Lenders and each Lender increasing its Revolving Commitment as of the Third Amendment
Effective Date;

 

(b)                                 receipt by the Administrative Agent, for the
benefit of each Lender that is increasing its Revolving Commitment pursuant to
the terms of this Amendment of an upfront fee equal to 0.20% on the amount of
the additional Revolving Commitment made by such Lender pursuant to the terms
of this Agreement; and

 

(c)                                  receipt by the Administrative Agent of a
certificate of a Responsible Officer of the Borrowers and each other Loan
Party, attaching resolutions of the Borrowers and such Loan Party, in form and
substance reasonably satisfactory to the Administrative Agent, approving and
adopting this Agreement and the transactions contemplated herein.

 

3.                                       Approvals.

 

(a)                                  The Lenders hereby consent to and approve the
terms of the form of intercreditor agreement attached hereto as Exhibit A
(the “Form Intercreditor Agreement”).  By execution hereof, the Lenders acknowledge and
agree to the terms of the Form Intercreditor Agreement and authorize and
direct the Administrative Agent to enter into an Intercreditor Agreement
containing terms substantially similar to the Form Intercreditor Agreement
on behalf of all the Lenders and agree that the Lenders will be bound by the
terms of such Intercreditor Agreement upon such execution by the Administrative
Agent.

 

(b)                                 The Lenders hereby consent to and approve the
terms of the 2008 Senior Note Documents; provided that the 2008 Senior
Note Documents contain terms substantially similar to the terms set forth in
the senior note term sheet attached hereto as Exhibit B (the “Senior
Note Term Sheet”).  By execution
hereof, the Lenders acknowledge the terms of the Senior Note Term Sheet and consent
to GFI and the Domestic Guarantors entering into 2008 Senior Note Documents
containing terms substantially similar to those contained in the Senior Note
Term Sheet.

 

(c)                                  The Lenders hereby (i) consent to the
assignment by the Administrative Agent to the Collateral Agent of all right,
title and interest of the Administrative Agent under the Domestic Pledge
Agreement and the Domestic Security Agreement, including without limitation,
the liens pledged by the Domestic Loan Parties to the Administrative Agent
pursuant to the Domestic Security Agreement and the Domestic Pledge Agreement
and (ii) agree that the Administrative Agent and the Collateral Agent may
enter into any amendments to the Domestic Pledge Agreement, Domestic Security
Agreement and other Loan Documents deemed necessary by the Administrative Agent
and the Collateral Agent as a result of such assignment.

 

4.                                       Miscellaneous.

 

(a)                                  The Credit Agreement (as amended by this
Agreement), and the obligations of the Loan Parties thereunder and under the
other Loan Documents, are hereby ratified and confirmed and shall remain in
full force and effect according to their terms.

 

9

 

(b)                                 Each Guarantor (i) acknowledges
and consents to all of the terms and conditions of this Agreement, (ii) affirms
all of its obligations under the Loan Documents (as amended by this
Agreement) and (iii) agrees that this
Agreement and all documents executed in connection herewith do not operate to
reduce or discharge its obligations under the Credit Agreement (as
amended by this Agreement) or the other
Loan Documents.

 

(c)                                  The Borrowers and the Guarantors hereby
represent and warrant as follows:

 

(i)                                     Each Loan Party has taken all necessary
action to authorize the execution, delivery and performance of this Agreement.

 

(ii)                                  This Agreement has been duly executed and
delivered by the Loan Parties and constitutes each of the Loan Parties’ legal,
valid and binding obligations, enforceable against it in accordance with its
terms, except as such enforceability may be subject to (A) bankruptcy,
insolvency, reorganization, fraudulent conveyance or transfer, moratorium or
similar laws affecting creditors’ rights generally and (B) general
principles of equity (regardless of whether such enforceability is considered
in a proceeding at law or in equity).

 

(iii)                               No consent, approval, authorization or order
of, or filing, registration or qualification with, any court or governmental
authority or third party is required in connection with the execution, delivery
or performance by any Loan Party of this Agreement other than those which have
been obtained and are in full force and effect.

 

(d)                                 The Loan Parties represent and warrant to the
Lenders that (i) the representations and warranties of the Loan Parties
set forth in Article VI of the Credit Agreement and in each other Loan
Document are true and correct as of the date hereof with the same effect as if
made on and as of the date hereof, except to the extent such representations
and warranties expressly relate solely to an earlier date and (ii) no
event has occurred and is continuing which constitutes a Default or an Event of
Default.

 

(e)                                  This Agreement may be executed in any number of counterparts, each of which when
so executed and delivered shall be an original, but all of which shall
constitute one and the same instrument. 
Delivery of an executed counterpart of this Agreement by telecopy shall
be effective as an original and shall constitute a representation that an
executed original shall be delivered.

 

(f)                                    THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

[remainder of page intentionally
left blank]

 

10

 

Each of the parties
hereto has caused a counterpart of this Agreement to be duly executed and delivered
as of the date first above written.

 

 

	
  GFI:

  	
   

  	
  GFI GROUP INC.,

  
	
   

  	
   

  	
  a Delaware corporation,
  as a Borrower and, with

  
	
   

  	
   

  	
  respect to the Foreign
  Obligations, as a Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
  FOREIGN BORROWER:

  	
   

  	
  GFI HOLDINGS LIMITED,

  
	
   

  	
   

  	
  a company incorporated
  under the

  
	
   

  	
   

  	
  laws of England and
  Wales

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
  DOMESTIC GUARANTORS:

  	
   

  	
  GFI GROUP LLC,

  
	
   

  	
   

  	
  a New York limited
  liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

	
   

  	
   

  	
  GFINET INC.,

  
	
   

  	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

	
   

  	
   

  	
  GFI BROKERS LLC,

  
	
   

  	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

	
   

  	
   

  	
  INTERACTIVE VENTURES
  LLC,

  
	
   

  	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
   

  	
  FENICS SOFTWARE INC.,

  
	
   

  	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

	
   

  	
   

  	
  AMEREX BROKERS LLC,

  
	
   

  	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
  FOREIGN GUARANTORS:

  	
   

  	
  FENICS LIMITED,

  
	
   

  	
   

  	
  a company incorporated
  under the

  
	
   

  	
   

  	
  laws of England and
  Wales

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

	
   

  	
   

  	
  FENICS SOFTWARE
  LIMITED,

  
	
   

  	
   

  	
  a company incorporated
  under the

  
	
   

  	
   

  	
  laws of England and
  Wales

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

	
   

  	
   

  	
  GFINET EUROPE LIMITED,

  
	
   

  	
   

  	
  a company incorporated
  under the

  
	
   

  	
   

  	
  laws of England and
  Wales

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
  ADMINISTRATIVE

  	
   

  	
   

  
	
  AGENT:

  	
   

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
   

  	
  as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

	
  LENDERS:

  	
   

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
   

  	
  as a Lender and an L/C
  Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
   

  	
  BARCLAYS BANK PLC,

  
	
   

  	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
   

  	
  BROWN BROTHERS HARRIMAN &
  CO.,

  
	
   

  	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
   

  	
  THE ROYAL BANK OF
  SCOTLAND PLC,

  
	
   

  	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
   

  	
  BANK
  OF MONTREAL,

  
	
   

  	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Bank of Montreal – Chicago Branch

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Bank of Montreal – London Branch

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
						

 

 

Schedule 2.01

 

Commitment and Pro Rata Shares

 

	
  Lender

  	
   

  	
  Revolving

  Commitment

  	
   

  	
  Pro Rata Share

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
  $

  	
  75,000,000

  	
   

  	
  28.302

  	
  %

  
	
  The Royal Bank of Scotland PLC

  	
   

  	
  $

  	
  65,000,000

  	
   

  	
  24.528

  	
  %

  
	
  Barclays Bank PLC

  	
   

  	
  $

  	
  62,500,000

  	
   

  	
  23.585

  	
  %

  
	
  Bank of Montreal

  	
   

  	
  $

  	
  45,000,000

  	
   

  	
  16.981

  	
  %

  
	
  Brown Brothers Harriman & Co.

  	
   

  	
  $

  	
  17,500,000

  	
   

  	
  6.604

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total:

  	
   

  	
  $

  	
  265,000,000

  	
   

  	
  100.000

  	
  %

  

 

 

Exhibit A

 

Form Intercreditor Agreement

 

See Attached

 

 

Exhibit B

 

Senior Note Term Sheet

 

	
  Issuer:

  	
   

  	
  GFI Group Inc (the
  “Company”) or the “Issuer”.

  
	
   

  	
   

  	
   

  
	
  Guarantors:

  	
   

  	
  Certain domestic subsidiaries of the Company who are
  guarantors under the Amended and Restated Credit Agreement dated as of
  February 24, 2006 by and among the Company, GFI Holdings Limited, the
  guarantors party thereto, the lenders party thereto (the “Lenders”) and Bank
  of America, N.A. as Administrative Agent (the “Senior Credit Agreement”). If any Guarantor’s obligation is released
  under the Senior Credit Agreement, such Guarantor will be, upon written
  notification by the Company, automatically released from its obligation under
  the Notes.

  
	
   

  	
   

  	
   

  
	
  Issue:

  	
   

  	
  Senior Secured Notes (the “Notes”).

  
	
   

  	
   

  	
   

  
	
  Amount:

  	
   

  	
  Up to $150,000,000.

  
	
   

  	
   

  	
   

  
	
  Security and Priority:

  	
   

  	
  The Notes will be secured by all personal property of
  the Company and the Guarantors that is pledged to the Lenders under the
  Senior Credit Agreement. The Notes will rank pari passu in right of repayment
  with the Company’s other secured senior indebtedness. When the security is
  released under the Senior Credit Agreement, upon written notification by the
  Company, it will automatically be released under the Notes.

  
	
   

  	
   

  	
   

  
	
  Final Maturity:

  	
   

  	
  5-year bullet.

  
	
   

  	
   

  	
   

  
	
  Interest Rate:

  	
   

  	
  7.17%
  (subject to an increase by 1.00% if required by risk based capital
  regulations).

  
	
   

  	
   

  	
   

  
	
  Interest Payments:

  	
   

  	
  Interest will be payable semi-annually in arrears,
  calculated on the basis of a 360-day year of twelve 30-day months.

  
	
   

  	
   

  	
   

  
	
  Use of Proceeds:

  	
   

  	
  The proceeds from the Notes may be used to refinance
  existing indebtedness and for general corporate purposes (including
  acquisitions).

  
	
   

  	
   

  	
   

  
	
  Required Prepayment:

  	
   

  	
  The Notes will have a bullet
  maturity 5 years from funding.

  
	
   

  	
   

  	
   

  
	
  Optional Prepayment:

  	
   

  	
  The
  Company may, at its option, prepay all or part of the Notes, in an amount not
  less than 5% of the original aggregate principal amount of the Notes in the
  case of a partial prepayment, at any time
  with at least thirty (30) days advance notice, for the sum of 100% of the
  principal amount so prepaid, together with interest accrued thereon plus the
  Make-Whole Amount. Such Optional
  Prepayment may be applied pro-rata to any series of Notes. For the

  

 

 

	
   

  	
   

  	
  purposes hereof, “Make-Whole Amount” means the
  present value of all remaining interest and principal payments, calculated
  using a discount rate equal to the sum of (i) 50 basis points plus (ii) the
  yield on a U.S. Treasury obligation having a final maturity corresponding with
  the remaining average life of the Notes being prepaid.

  
	
   

  	
   

  	
   

  
	
  Prepayment for a Change 

  of Control

  	
   

  	
  The
  Company shall, within fifteen (15) business days after any responsible
  officer has knowledge of the occurrence of any change in control or control
  event, give written notice of such to each holder of the Notes. If a change
  in control has already occurred and the Issuer or its successor, after giving
  affect to the acquisition, do not attain an investment grade rating from a
  nationally recognized rating agency, such notice shall contain and constitute
  an offer to prepay the Notes at par. A holder of the Notes may reject the
  offer to prepay by notifying the Company in writing within fifteen (15)
  business days after receipt of such notice from the Company. A failure by a
  holder of the Notes to respond shall be deemed to constitute rejection of the
  offer.

  
	
   

  	
   

  	
   

  
	
  Change
  of Control

  	
   

  	
  There
  will be an additional Change of Control triggered if Mickey Gooch fails to
  own, directly or indirectly, at least 4 million shares of the Company’s
  stock.

  
	
   

  	
   

  	
   

  
	
  Consolidated Leverage 

  Ratio

  	
   

  	
  As of the last day of each fiscal quarter, the Company will not permit the ratio of
  Consolidated Funded Indebtedness to Consolidated EBITDA (calculated as at the
  end of each fiscal quarter for the four consecutive fiscal quarters then
  ended) to exceed 2.75 times.

  
	
   

  	
   

  	
   

  
	
  Consolidated Interest Coverage Ratio

  	
   

  	
  As of the last day of each fiscal quarter, the Company will not permit the ratio of
  Consolidated EBITDA to Consolidated Interest Charges for each period of four
  consecutive fiscal quarters to be less than 3.0 times.

  
	
   

  	
   

  	
   

  
	
  Consolidated Capital

  	
   

  	
  The Company will not permit Consolidated Capital to be
  less than $300,000,000 plus 25% of Consolidated Net Income.

  
	
   

  	
   

  	
   

  
	
  Priority Indebtedness

  	
   

  	
  The Company will not at any
  time permit the aggregate amount of all Priority Indebtedness to exceed 15% of Consolidated Capital as of the end of
  the then most recently ended fiscal quarter of the Company.

  
	
   

  	
   

  	
   

  
	
  Proprietary Trading

  	
   

  	
  The Company will not engage in any trading activity
  for its own account (it being agreed that matched principal transactions will
  not be considered trading for its own account) other than (a) any
  activity entered into in the ordinary course of business for the purposes of
  managing its cash and (b) any trading of securities for its own account;
  provided that after giving effect to any such

  

 

 

	
   

  	
   

  	
  purchase of securities the aggregate amount of the
  initial purchase price of all such securities held by the Company and its
  Subsidiaries shall not exceed five percent (5%) of Consolidated Capital at
  the time of such purchase.Exhibit 10.20

 

 

 

GFI
GROUP INC.

 

 

$60,000,000 7.17% Senior Notes

due January 30, 2013

 

 

 

NOTE
PURCHASE AGREEMENT

 

 

 

DATED AS OF JANUARY 30,
2008

 

 

 

 

 

	
  TABLE OF CONTENTS

  
	
   

  	
   

  	
   

  
	
  SECTION

  	
   

  	
  HEADING

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  SECTION 1.

  	
  AUTHORIZATION
  OF NOTES

  	
  1

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 1.1.

  	
  Description of Notes

  	
  1

  
	
   

  	
  Section 1.2.

  	
  Interest Rate

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  SALE
  AND PURCHASE OF NOTES; COLLATERAL

  	
  2

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 2.1.

  	
  Notes

  	
  2

  
	
   

  	
  Section 2.2.

  	
  Security for the Notes

  	
  2

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  CLOSING

  	
  3

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  CONDITIONS
  TO CLOSING

  	
  4

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 4.1.

  	
  Representations and Warranties

  	
  4

  
	
   

  	
  Section 4.2.

  	
  Performance; No Default

  	
  4

  
	
   

  	
  Section 4.3.

  	
  Compliance Certificates

  	
  4

  
	
   

  	
  Section 4.4.

  	
  Opinions of Counsel

  	
  5

  
	
   

  	
  Section 4.5.

  	
  Purchase Permitted By Applicable
  Law, Etc

  	
  5

  
	
   

  	
  Section 4.6.

  	
  Sale of Other Notes

  	
  5

  
	
   

  	
  Section 4.7.

  	
  Payment of Special Counsel Fees

  	
  5

  
	
   

  	
  Section 4.8.

  	
  Private Placement Number

  	
  6

  
	
   

  	
  Section 4.9.

  	
  Changes in Corporate Structure

  	
  6

  
	
   

  	
  Section 4.10.

  	
  Subsidiary Guaranty

  	
  6

  
	
   

  	
  Section 4.11.

  	
  Collateral Documents.

  	
  6

  
	
   

  	
  Section 4.12.

  	
  Insurance

  	
  6

  
	
   

  	
  Section 4.13.

  	
  UCC Searches

  	
  6

  
	
   

  	
  Section 4.14.

  	
  Filings

  	
  6

  
	
   

  	
  Section 4.15.

  	
  Funding Instructions

  	
  6

  
	
   

  	
  Section 4.16.

  	
  Proceedings and Documents

  	
  6

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  REPRESENTATIONS
  AND WARRANTIES OF THE COMPANY

  	
  7

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 5.1.

  	
  Organization; Power and Authority

  	
  7

  
	
   

  	
  Section 5.2.

  	
  Authorization, Etc

  	
  7

  
	
   

  	
  Section 5.3.

  	
  Disclosure

  	
  7

  
	
   

  	
  Section 5.4.

  	
  Organization and Ownership of Shares of
  Subsidiaries;

  Affiliates

  	
  8

  
	
   

  	
  Section 5.5.

  	
  Financial Statements; Material
  Liabilities

  	
  8

  
	
   

  	
  Section 5.6.

  	
  Compliance with Laws, Other
  Instruments, Etc

  	
  9

  
	
   

  	
  Section 5.7.

  	
  Governmental Authorizations, Etc

  	
  9

  
	
   

  	
  Section 5.8.

  	
  Litigation; Observance of
  Agreements, Statutes and Orders

  	
  9

  
	
   

  	
  Section 5.9.

  	
  Taxes

  	
  9

  
						

 

i

 

	
   

  	
  Section 5.10.

  	
  Title to Property; Leases

  	
  10

  
	
   

  	
  Section 5.11.

  	
  Licenses, Permits, Etc

  	
  10

  
	
   

  	
  Section 5.12.

  	
  Compliance with ERISA

  	
  10

  
	
   

  	
  Section 5.13.

  	
  Private Offering by the Company

  	
  11

  
	
   

  	
  Section 5.14.

  	
  Use of Proceeds; Margin Regulations

  	
  11

  
	
   

  	
  Section 5.15.

  	
  Existing Indebtedness; Future Liens

  	
  12

  
	
   

  	
  Section 5.16.

  	
  Foreign Assets Control Regulations,
  Etc

  	
  12

  
	
   

  	
  Section 5.17.

  	
  Status under Certain Statutes

  	
  13

  
	
   

  	
  Section 5.18.

  	
  Environmental Matters

  	
  13

  
	
   

  	
  Section 5.19.

  	
  Notes Rank Pari Passu

  	
  13

  
	
   

  	
  Section 5.20.

  	
  Perfection of Liens

  	
  13

  
	
   

  	
  Section 5.21.

  	
  Filings

  	
  13

  
	
   

  	
  Section 5.22.

  	
  Representations and Warranties in
  Collateral Documents

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  REPRESENTATIONS
  OF EACH PURCHASER

  	
  14

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 6.1.

  	
  Purchase for Investment

  	
  14

  
	
   

  	
  Section 6.2.

  	
  Accredited Investor

  	
  14

  
	
   

  	
  Section 6.3.

  	
  Source of Funds

  	
  14

  
	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  INFORMATION
  AS TO COMPANY

  	
  16

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 7.1.

  	
  Financial and Business Information

  	
  16

  
	
   

  	
  Section 7.2.

  	
  Officer’s Certificate

  	
  18

  
	
   

  	
  Section 7.3.

  	
  Visitation

  	
  18

  
	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  PAYMENT
  OF THE NOTES

  	
  19

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 8.1.

  	
  Required Prepayments

  	
  19

  
	
   

  	
  Section 8.2.

  	
  Optional Prepayments with
  Make-Whole Amount

  	
  19

  
	
   

  	
  Section 8.3.

  	
  Allocation of Partial Prepayments

  	
  20

  
	
   

  	
  Section 8.4.

  	
  Maturity; Surrender, Etc.

  	
  20

  
	
   

  	
  Section 8.5.

  	
  Purchase of Notes

  	
  20

  
	
   

  	
  Section 8.6.

  	
  Make-Whole Amount for the Notes

  	
  20

  
	
   

  	
  Section 8.7.

  	
  Change of Control Prepayment Offer

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  AFFIRMATIVE
  COVENANTS

  	
  22

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 9.1.

  	
  Compliance with Law

  	
  22

  
	
   

  	
  Section 9.2.

  	
  Insurance

  	
  23

  
	
   

  	
  Section 9.3.

  	
  Maintenance of Properties

  	
  23

  
	
   

  	
  Section 9.4.

  	
  Payment of Taxes and Claims

  	
  23

  
	
   

  	
  Section 9.5.

  	
  Corporate Existence, Etc

  	
  23

  
	
   

  	
  Section 9.6.

  	
  Ranking of Collateral Securing the
  Notes

  	
  24

  
	
   

  	
  Section 9.7.

  	
  Additional Subsidiary Guarantors

  	
  24

  
	
   

  	
  Section 9.8.

  	
  Books and Records

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
  NEGATIVE
  COVENANTS

  	
  25

  

 

ii

 

	
   

  	
  Section 10.1.

  	
  Consolidated Capital

  	
  25

  
	
   

  	
  Section 10.2.

  	
  Consolidated Leverage Ratio

  	
  25

  
	
   

  	
  Section 10.3.

  	
  Consolidated Interest Coverage
  Ratio

  	
  25

  
	
   

  	
  Section 10.4.

  	
  Priority Indebtedness

  	
  25

  
	
   

  	
  Section 10.5.

  	
  Limitation on Liens

  	
  25

  
	
   

  	
  Section 10.6.

  	
  Sales of Assets

  	
  28

  
	
   

  	
  Section 10.7.

  	
  Merger and Consolidation

  	
  29

  
	
   

  	
  Section 10.8.

  	
  Transactions with Affiliates

  	
  29

  
	
   

  	
  Section 10.9.

  	
  Terrorism Sanctions Regulations

  	
  30

  
	
   

  	
  Section 10.10.

  	
  Limitation on Proprietary Trading

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
  EVENTS
  OF DEFAULT

  	
  30

  
	
   

  	
   

  	
   

  
	
  SECTION 12.

  	
  REMEDIES
  ON DEFAULT, ETC

  	
  33

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 12.1.

  	
  Acceleration

  	
  33

  
	
   

  	
  Section 12.2.

  	
  Other Remedies

  	
  33

  
	
   

  	
  Section 12.3.

  	
  Rescission

  	
  33

  
	
   

  	
  Section 12.4.

  	
  No Waivers or Election of Remedies,
  Expenses, Etc

  	
  34

  
	
   

  	
   

  	
   

  
	
  SECTION 13.

  	
  REGISTRATION;
  EXCHANGE; SUBSTITUTION OF NOTES

  	
  34

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 13.1.

  	
  Registration of Notes

  	
  34

  
	
   

  	
  Section 13.2.

  	
  Transfer and Exchange of Notes

  	
  34

  
	
   

  	
  Section 13.3.

  	
  Intercreditor Agreement

  	
  35

  
	
   

  	
  Section 13.4.

  	
  Replacement of Notes

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 14.

  	
  PAYMENTS
  ON NOTES

  	
  35

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 14.1.

  	
  Place of Payment

  	
  35

  
	
   

  	
  Section 14.2.

  	
  Home Office Payment

  	
  36

  
	
   

  	
   

  	
   

  
	
  SECTION 15.

  	
  EXPENSES,
  ETC

  	
  36

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 15.1.

  	
  Transaction Expenses

  	
  36

  
	
   

  	
  Section 15.2.

  	
  Survival

  	
  37

  
	
   

  	
   

  	
   

  
	
  SECTION 16.

  	
  SURVIVAL
  OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT

  	
  37

  
	
   

  	
   

  	
   

  
	
  SECTION 17.

  	
  AMENDMENT
  AND WAIVER

  	
  37

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 17.1.

  	
  Requirements

  	
  37

  
	
   

  	
  Section 17.2.

  	
  Solicitation of Holders of Notes

  	
  37

  
	
   

  	
  Section 17.3.

  	
  Binding Effect, Etc

  	
  38

  
	
   

  	
  Section 17.4.

  	
  Notes Held by Company, Etc

  	
  38

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 18.

  	
  NOTICES

  	
  38

  

 

iii

 

	
  SECTION 19.

  	
  REPRODUCTION
  OF DOCUMENTS

  	
  39

  
	
   

  	
   

  	
   

  
	
  SECTION 20.

  	
  CONFIDENTIAL
  INFORMATION

  	
  39

  
	
   

  	
   

  	
   

  
	
  SECTION 21.

  	
  SUBSTITUTION
  OF PURCHASER

  	
  40

  
	
   

  	
   

  	
   

  
	
  SECTION 22.

  	
  MISCELLANEOUS

  	
  41

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 22.1.

  	
  Successors and Assigns

  	
  41

  
	
   

  	
  Section 22.2.

  	
  Payments Due on Non-Business Days

  	
  41

  
	
   

  	
  Section 22.3.

  	
  Accounting Terms

  	
  41

  
	
   

  	
  Section 22.4.

  	
  Severability

  	
  41

  
	
   

  	
  Section 22.5.

  	
  Construction

  	
  41

  
	
   

  	
  Section 22.6.

  	
  Counterparts

  	
  42

  
	
   

  	
  Section 22.7.

  	
  Governing Law

  	
  42

  
	
   

  	
  Section 22.8.

  	
  Jurisdiction and Process; Waiver of
  Jury Trial

  	
  42

  
	
   

  	
  Section 22.9.

  	
  Process Agent

  	
  42

  

 

iv

 

	
  SCHEDULE A

  	
   

  	
  —

  	
   

  	
  INFORMATION
  RELATING TO PURCHASERS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE B

  	
   

  	
  —

  	
   

  	
  DEFINED TERMS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 4.9

  	
   

  	
  —

  	
   

  	
  Changes in
  Corporate Structure

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 5.4

  	
   

  	
  —

  	
   

  	
  Subsidiaries of
  the Company, Ownership of Subsidiary Stock, Affiliates

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 5.5

  	
   

  	
  —

  	
   

  	
  Financial
  Statements

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 5.11

  	
   

  	
  —

  	
   

  	
  Licenses,
  Permits, Etc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 5.15

  	
   

  	
  —

  	
   

  	
  Existing
  Indebtedness

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 10.5

  	
   

  	
  —

  	
   

  	
  Existing Liens

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT 1

  	
   

  	
  —

  	
   

  	
  Form of
  7.17% Senior Notes due January 30, 2013

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT 2.2(a)

  	
   

  	
  —

  	
   

  	
  Form of
  Subsidiary Guaranty

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT 2.2(b)

  	
   

  	
  —

  	
   

  	
  Form of
  Security Agreement

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT 2.2(c)

  	
   

  	
  —

  	
   

  	
  Form of
  Pledge Agreement

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT 4.4(a)

  	
   

  	
  —

  	
   

  	
  Form of
  Opinion of General Counsel to the Company

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT 4.4(b)

  	
   

  	
  —

  	
   

  	
  Form of
  Opinion of Special Counsel to the Company

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT 4.4(c)

  	
   

  	
  —

  	
   

  	
  Form of
  Opinion of Special Counsel to the Purchasers

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT 4.12

  	
   

  	
  —

  	
   

  	
  Form of
  Intercreditor Agreement

  

 

v

 

GFI
GROUP INC.

100 WALL STREET

NEW YORK, NEW YORK 10005

 

$60,000,000 7.17% SENIOR
NOTES

DUE JANUARY 30, 2013

 

Dated as of

January 30, 2008

 

TO THE PURCHASERS LISTED
IN

THE ATTACHED SCHEDULE A:

 

Ladies and Gentlemen:

 

GFI GROUP INC., a Delaware corporation (the “Company”), agrees with the Purchasers listed in the
attached Schedule A (the “Purchasers”)
to this Note Purchase Agreement (this “Agreement”) as
follows:

 

SECTION 1.                                                 AUTHORIZATION
OF NOTES.

 

Section 1.1.                                Description of Notes. 
The Company will authorize the issue and sale of the following:

 

	
  Issue

  	
   

  	
  Series and/or

  Tranche

  	
   

  	
  Aggregate

  Principal

  Amount

  	
   

  	
  Interest Rate

  	
   

  	
  Maturity Date

  	
   

  
	
  Senior Notes

  	
   

  	
  N/A

  	
   

  	
  $60,000,000

  	
   

  	
  7.17% (subject to adjustment
  per Section 1.2(b))

  	
   

  	
  January 30, 2013

  	
   

  

 

The Senior Notes described above together are
collectively referred to as the “Notes” (such
term shall also include any such notes issued in substitution therefor pursuant
to Section 13 of this Agreement). 
The Notes shall be substantially in the form set out in Exhibit 1,
with such changes therefrom, if any, as may be approved by the Purchasers and
the Company.  Certain capitalized and
other terms used in this Agreement are defined in Schedule B; references
to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a Schedule
or an Exhibit attached to this Agreement.

 

Section 1.2.           Interest Rate. 
(a) Subject
to Section 1.2(b), the Notes shall bear interest (computed on the basis of
a 360-day year of twelve 30-day months) (i) on the unpaid principal

 

 

thereof from the date of
issuance at the per annum rate of interest of 7.17% payable semi-annually in
arrears on the 30th day of January and July in each year commencing
on July 30, 2008, until such principal sum shall have become due and
payable (whether at maturity, upon prepayment or otherwise) and (ii) on
any overdue principal, interest or Make-Whole Amount from the due date thereof
(whether by acceleration or otherwise) and, during the continuance of an Event
of Default, on the unpaid balance hereof, at the applicable Default Rate until
paid.

 

 (b)       The per annum interest rate payable on
the Notes shall be increased by 1.00% (the “RBC Change Premium”),
if, pursuant to generally applicable insurance regulations for U.S. life and
health insurance companies, the risk based capital factor (the “Risk Based Capital Factor”) attributed by any Purchaser to
any Note as of the date of Closing increases after the date of the Closing to a
level above the level prevailing on the date of the Closing (an “RBC Change”), then any holder of a Note may give notice of
such RBC Change (an “RBC Change Notice”)
to the Company, and,  within 10 Business
Days of receipt thereof, the Company shall give notice of such RBC Change to
the other holders of the Notes and the date that the interest rate payable on
the Notes was increased by the RBC Change Premium.  The RBC Change Premium will be in effect from
the date of RBC Change until the date the Risk Based Capital Factor decreases
to its original level as of the Closing Date, as specified in a further notice
from the holder of any Note to the Company. 
The RBC Change Premium, while in effect, shall be due and payable on the
date that each semi-annual interest payment is due and payable on the Notes
beginning on the date of the first interest payment date that is immediately
following 120 days after a RBC Change. 
The holders of the Notes will use reasonable efforts to promptly notify
the Company of any increases and decreases in the Risk Based Capital Factor.

 

Notwithstanding anything to the contrary contained in
this Section 1.2(b), the RBC Change Premium shall not accrue on the Notes
if, either (i) the Company has Rated Securities outstanding at the time of
such RBC Change and such Rated Securities have an Investment Grade rating on
the date 120 days after the date of such RBC Change, or (ii) the Company
does not have Rated Securities outstanding at the time of such RBC Change but
on the date 120 days after the date of such RBC Change, the Company has
outstanding Rated Securities that have an Investment Grade rating.

 

SECTION 2.                                                 SALE AND
PURCHASE OF NOTES; COLLATERAL.

 

Section 2.1.   Notes.  Subject to the
terms and conditions of this Agreement, the Company will issue and sell to each
Purchaser and each Purchaser will purchase from the Company, at the Closing
provided for in Section 3, the Notes in the principal amount specified
opposite such Purchaser’s name in Schedule A at the purchase price of 100% of
the principal amount thereof.  The
obligations of each Purchaser hereunder are several and not joint obligations
and each Purchaser shall have no obligation and no liability to any Person for
the performance or nonperformance by any other Purchaser hereunder.

 

Section 2.2.   Security for the Notes.  (a) The payment by the Company of all amounts due
with respect to the Notes and the performance by the Company of its obligations
under this Agreement and the other Note Documents to which it is a party will
be absolutely and

2

 

unconditionally guaranteed by certain direct and indirect domestic
Subsidiaries of the Company as identified in Schedule 5.4 (each a “Subsidiary Guarantor”) pursuant to the Subsidiary Guaranty
Agreement, dated as of even date herewith, which shall be substantially in the
form of Exhibit 2.2(a) attached hereto, and otherwise in accordance
with the provisions of Section 9.7 hereof (the “Subsidiary
Guaranty”).

 

(b)       In addition, the Notes will be entitled to the benefit
of: (i) that certain Security Agreement, dated as of even date herewith,
which shall be substantially in the form of Exhibit 2.2(b) attached
hereto (the “Security Agreement”), by and among the
Company, the Subsidiary Guarantors and the Collateral Agent for the ratable
benefit of the holders of Senior Secured Indebtedness; and (ii) that
certain Pledge Agreement, dated as of the date even herewith, which shall be
substantially in the form of Exhibit 2.2(c) attached hereto (the “Pledge Agreement”), by and among the Company, the Subsidiary
Guarantors and the Collateral Agent for the ratable benefit of the holders of
Senior Secured Indebtedness.

 

(c)           Subject to Section 2.2(d) below, the holders
of the Notes agree to discharge and release any Subsidiary Guarantor from the
Subsidiary Guaranty upon the written notice of the Company, provided that (i) such Subsidiary Guarantor has been
released and discharged (or will be released and discharged concurrently with
the release of such Subsidiary Guarantor under the Subsidiary Guaranty) as an
obligor and guarantor under and in respect of the Bank Credit Agreement and the
Company so certifies to the holders of the Notes in a certificate of a
Responsible Officer, (ii) at the time of such release and discharge, the
Company shall deliver a certificate of a Responsible Officer to the holders of
the Notes stating that no Default or Event of Default exists and that no amount
is then due and payable under the Subsidiary Guaranty, and (iii) if any
fee or other form of consideration is given to any holder of Indebtedness of
the Company expressly for the purpose of such release, holders of the Notes
shall receive equivalent consideration.

 

(d)           Notwithstanding anything to the contrary
contained in Section 2.2(c), if any Subsidiary Guarantor has granted any
Lien in favor of the Collateral Agent pursuant to any Collateral Document, the
Subsidiary Guarantor shall not be released from its obligations under a
Subsidiary Guaranty unless the Collateral Agent shall have released all of the
Liens granted by such Subsidiary Guarantor in favor of the Collateral Agent in
accordance with the terms of the Note Documents.

 

SECTION 3.                                                 CLOSING.

 

The sale and purchase of the Notes to be purchased by
each Purchaser shall occur at the offices of Chapman and Cutler, LLP, 111 West
Monroe Street, Chicago, Illinois 60603 at 10:00 a.m. Central time, at a
closing (the “Closing”) on January 30,
2008 or on such other Business Day thereafter on or prior to January 31,
2008 as may be agreed upon by the Company and the Purchasers (the “Closing Date”).   On
the Closing Date, the Company will deliver to each Purchaser the Notes to be
purchased by such Purchaser in the form of a single Note (or such greater
number of Notes in denominations of at least $500,000 as such Purchaser may
request) dated the date of the Closing Date and registered in such Purchaser’s
name (or in the name of such Purchaser’s nominee), against delivery by such
Purchaser to the Company or its order of

 

3

 

immediately available funds in the amount of the purchase
price therefor by wire transfer of immediately available funds for the account
of the Company to Account Number 1233103322, at Bank of America, San Francisco,
CA, ABA Number 026009593, in the Account Name of “GFI Group Inc.”  If, on the Closing Date, the Company shall
fail to tender such Notes to any Purchaser as provided above in this Section 3,
or any of the conditions specified in Section 4 shall not have been
fulfilled to such Purchaser’s satisfaction, such Purchaser shall, at such
Purchaser’s election, be relieved of all further obligations under this
Agreement, without thereby waiving any rights such Purchaser may have by reason
of such failure or such nonfulfillment.

 

SECTION 4.                                                 CONDITIONS
TO CLOSING.

 

Each Purchaser’s obligation to purchase and pay for
the Notes to be sold to such Purchaser at the Closing is subject to the
fulfillment to such Purchaser’s satisfaction, prior to or at the Closing, of
the following conditions:

 

Section 4.1.              Representations
and Warranties.

 

(a)           Representations and
Warranties of the Company.  The
representations and warranties of the Company in the Note Documents to which it
is a party shall be correct when made and at the time of the Closing.

 

(b)           Representations and
Warranties of the Subsidiary Guarantors. The representations and
warranties of each Subsidiary Guarantor in the Note Documents to which it is a
party shall be correct when made and at the time of the Closing.

 

Section 4.2.              Performance;
No Default.   The Company and each
Subsidiary Guarantor shall have performed and complied with all agreements and
conditions contained in the Note Documents required to be performed or complied
with by the Company and each such Subsidiary Guarantor prior to or at the
Closing, and after giving effect to the issue and sale of the Notes (and the
application of the proceeds thereof as contemplated by Section 5.14), no
Default or Event of Default shall have occurred and be continuing.  Neither the Company nor any Subsidiary shall
have entered into any transaction since the date of the Memorandum that would
have been prohibited by Sections 10.5 through 10.9, inclusive, had such
Sections applied since such date.

 

Section 4.3.              Compliance
Certificates.

 

(a)           Officer’s Certificate of
the Company.  The Company
shall have delivered to such Purchaser an Officer’s Certificate, dated the
Closing Date, certifying that the conditions specified in Sections 4.1,
4.2 and 4.9 have been fulfilled.

 

(b)           Secretary’s Certificate of
the Company.  The Company
shall have delivered to such Purchaser a certificate, dated the Closing Date,
certifying as to the resolutions attached thereto and other corporate
proceedings relating to the authorization, execution and delivery of the Notes
and this Agreement.

 

4

 

(c)           Officer’s Certificate of
the Subsidiary Guarantors.  Each
Subsidiary Guarantor shall have delivered to such Purchaser an Officer’s
Certificate, dated the Closing Date, certifying that the conditions specified
in Sections 4.1(b), 4.2 and 4.9 have been fulfilled.

 

(d)           Secretary’s Certificate of
the Subsidiary Guarantors.  Each
Subsidiary Guarantor shall have delivered to such Purchaser a certificate,
dated the Closing Date, certifying as to the resolutions attached thereto and
other corporate proceedings relating to the authorization, execution and
delivery of the Subsidiary Guaranty.

 

Section 4.4.              Opinions
of Counsel.  Such Purchaser shall
have received opinions in form and substance satisfactory to such Purchaser,
dated the Closing Date (a) from Scott Pintoff, General Counsel of the
Company, covering the matters set forth in Exhibit 4.4(a) and
covering such other matters incident to the transactions contemplated hereby as
such Purchaser or its counsel may reasonably request (and the Company hereby
requests its counsel to deliver such opinion to the Purchasers), (b) from
Milbank, Tweed, Hadley & McCloy LLP, special counsel for the Company,
covering the matters set forth in Exhibit 4.4(b) and covering such
other matters incident to the transactions contemplated hereby as such
Purchaser or its counsel may reasonably request (and the Company hereby
requests its counsel to deliver such opinion to the Purchasers), and (c) from
Chapman and Cutler, LLP, the Purchasers’ special counsel in connection with
such transactions, substantially in the form set forth in Exhibit 4.4(c) and
covering such other matters incident to such transactions as such Purchaser may
reasonably request.

 

Section 4.5.              Purchase
Permitted By Applicable Law, Etc.  On the date of the Closing such Purchaser’s
purchase of Notes shall (a) be permitted by the laws and regulations of
each jurisdiction to which such Purchaser is subject, without recourse to
provisions (such as section 1405(a)(8) of the New York Insurance Law)
permitting limited investments by insurance companies without restriction as to
the character of the particular investment, (b) not violate any applicable
law or regulation (including, without limitation, Regulation T, U or X of
the Board of Governors of the Federal Reserve System) and (c) not subject
such Purchaser to any tax, penalty or liability under or pursuant to any
applicable law or regulation, which law or regulation was not in effect on the
date hereof.  If requested by such
Purchaser, such Purchaser shall have received an Officer’s Certificate
certifying as to such matters of fact as such Purchaser may reasonably specify
to enable such Purchaser to determine whether such purchase is so permitted.

 

Section 4.6.              Sale
of Other Notes.   Contemporaneously
with the Closing the Company shall sell to each other Purchaser and each other
Purchaser shall purchase the Notes to be purchased by it at the Closing as
specified in Schedule A.

 

Section 4.7.              Payment
of Special Counsel Fees.  Without limiting the
provisions of Section 15.1, the Company shall have paid on or before the
Closing Date, the reasonable fees, reasonable charges and reasonable
disbursements of the Purchasers’ special counsel referred to in Section 4.4
to the extent reflected in a statement of such counsel rendered to the Company
at least two Business Days prior to the Closing Date and reasonably agreed to
by the Company.

 

5

 

Section 4.8.              Private
Placement Number.  A Private Placement
Number issued by Standard & Poor’s CUSIP Service Bureau (in
cooperation with the Securities Valuation Office of the National Association of
Insurance Commissioners) shall have been obtained for the Notes.

 

Section 4.9.              Changes
in Corporate Structure.   Neither the Company nor any
Subsidiary Guarantor shall have changed its jurisdiction of organization or,
except as reflected in Schedule 4.9, been a party to any merger or
consolidation, or shall have succeeded to all or any substantial part of the
liabilities of any other entity, at any time following the date of the most
recent financial statements referred to in Schedule 5.5.

 

Section 4.10.            Subsidiary
Guaranty.  The Subsidiary Guaranty shall have been
duly authorized, executed and delivered by each Subsidiary Guarantor and such
Purchaser shall have received a true, correct and complete copy thereof.

 

Section 4.11.            Collateral
Documents.  The Collateral Documents shall have been duly
authorized, executed and delivered by the respective parties thereto and such
Purchaser shall have received true, complete, executed copies thereof.

 

Section 4.12. Insurance.   Certificates of insurance evidencing the
insurance policies required to be delivered pursuant to the Collateral
Documents shall have been delivered to the Purchasers and their special
counsel.

 

Section 4.13.            UCC Searches.   UCC financing statement, judgment lien and
Federal income tax lien searches for each relevant jurisdiction shall have been
delivered to the Purchasers and their special counsel.

 

Section 4.14.            Filings.   Each financing statement and intellectual
property notice required to be filed, registered or recorded in connection with
the transactions contemplated by the Collateral Documents shall have been
delivered to the Collateral Agent for filing, registration or recordation in
each office, together with all certificates evidencing any certificated equity
interest pledged to the Collateral Agent and all duly executed stock powers
endorsed in blank, in each case required in order to create in favor of the
Collateral Agent, for the ratable benefit of the holders of Senior Secured
Indebtedness, a valid perfected first priority Lien on the Collateral, and all
necessary filing, registration and other similar fees, and all taxes and other
charges related to such filings, registrations and recordations, shall have
been paid in full by the Company or Subsidiary Guarantors.

 

Section 4.15.            Funding Instructions.  At least three Business Days prior
to the date of the Closing, the Purchasers’ special counsel shall have received
on behalf of each Purchaser a letter including written instructions signed by a
Responsible Officer on letterhead of the Company confirming the information
specified in Section 3 including (i) the name and address of the
transferee bank, (ii) such transferee bank’s ABA number and (iii) the
account name and number into which the purchase price for the Notes is to be
deposited.

 

Section 4.16.             Proceedings and Documents.  All corporate and other
organizational proceedings in connection with the transactions contemplated by
the Note Documents and all

 

6

 

documents and instruments incident to such transactions shall be
satisfactory to such Purchaser and its special counsel, and such Purchaser and
its special counsel (and the Company) shall have received all such counterpart
originals or certified or other copies of such documents as such Purchaser or
such special counsel may reasonably request from the Company or the Purchasers,
as applicable.

 

SECTION 5.                REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

 

The Company represents and warrants to each Purchaser
that:

 

Section 5.1.              Organization; Power and Authority. 
The Company is a corporation duly organized, validly existing and in
good standing under the laws of its jurisdiction of incorporation, and is duly
qualified as a foreign corporation and is in good standing in each jurisdiction
in which such qualification is required by law, other than those jurisdictions
as to which the failure to be so qualified or in good standing would not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.  The Company has the
corporate power and authority to own or hold under lease the properties it
purports to own or hold under lease, to transact the business it transacts and
proposes to transact, to execute and deliver each Note Document and to perform
the provisions hereof and thereof.

 

Section 5.2.              Authorization, Etc.  Each Note Document (including each
Note to be issued on the Closing Date) has been duly authorized by all necessary
corporate action on the part of the Company, and each Note Document constitutes
a legal, valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, except as such enforceability may be
limited by (i) applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditors’ rights
generally and (ii) general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law).

 

Section 5.3.              Disclosure.  The Company, through its agent,
Banc of America Securities LLC, has delivered to each Purchaser a copy of a
Private Placement Memorandum, dated November, 2007 (the “Memorandum”),
relating to the transactions contemplated by the Note Documents.  The Memorandum (including the documents or
filings with the SEC referenced therein) fairly describes, in all material
respects, the general nature of the business and principal properties of the
Company and its Subsidiaries.  The Note
Documents, the Memorandum (including the documents or filings with the SEC
referenced therein), the documents, certificates or other writings delivered to
the Purchasers by or on behalf of the Company in connection with the
transactions contemplated hereby and thereby and the financial statements
listed in Schedule 5.5, in each case, delivered to the Purchasers prior to
Closing Date (this Agreement, the Memorandum and such documents, certificates
or other writings and such financial statements being referred to,
collectively, as the “Disclosure Documents”),
taken as a whole, do not contain any untrue statement of a material fact or
omit to state any material fact necessary to make the statements therein not
misleading in light of the circumstances under which they were made.  Except as disclosed in the Disclosure
Documents, since December 31, 2006, there has been no change in the
financial condition, operations or business of the Company or any of its
Subsidiaries except changes that individually or in the aggregate would not
reasonably be

 

7

 

expected to have a Material Adverse Effect.  There is no fact known to the Company that
would reasonably be expected to have a Material Adverse Effect that has not
been set forth herein or in the Disclosure Documents.

 

Section 5.4.              Organization and Ownership of
Shares of Subsidiaries; Affiliates.  (a) Schedule 5.4
contains (except as noted therein) complete and correct lists (i) of the
Company’s Subsidiaries, showing, as to each Subsidiary, the correct name
thereof, the jurisdiction of its organization, and the percentage of shares of
each class of its capital stock or similar equity interests outstanding owned
by the Company and each other Subsidiary and identifying the Subsidiary
Guarantors, and all other Investments of the Company and its Subsidiaries
consisting of Capital Stock, (ii) of the Company’s Affiliates, other than
Subsidiaries, and (iii) of the Company’s directors and senior officers.

 

(b)           All of the outstanding shares of
capital stock or similar equity interests of each Subsidiary shown in
Schedule 5.4 as being owned by the Company and its Subsidiaries have been
validly issued, are fully paid and nonassessable and are owned by the Company
or another Subsidiary free and clear of any Lien (except as otherwise disclosed
in Schedule 5.4).

 

(c)           Each Subsidiary identified in
Schedule 5.4 is a corporation or other legal entity duly organized,
validly existing and in good standing under the laws of its jurisdiction of
organization, and is duly qualified as a foreign corporation or other legal
entity and is in good standing in each jurisdiction in which such qualification
is required by law, other than those jurisdictions as to which the failure to
be so qualified or in good standing would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.  Each such Subsidiary has the corporate or
other power and authority to own or hold under lease the properties it purports
to own or hold under lease and to transact the business it transacts and
proposes to transact.

 

(d)           Except as described in the section
entitled “Liquidity and Capital Resources” contained in the Company’s most
recently filed Form 10-Q, no Subsidiary is a party to, or otherwise
subject to, any legal restriction or any agreement (other than this Agreement,
the Bank Credit Agreement, the agreements listed on Schedule 5.4 and
customary limitations imposed by corporate law statutes or net capital
requirements of any relevant law) restricting the ability of such Subsidiary to
pay dividends out of profits or make any other similar distributions of profits
to the Company or any of its Subsidiaries that owns outstanding shares of
capital stock or similar equity interests of such Subsidiary.

 

Section 5.5.              Financial Statements; Material
Liabilities.  The Company has
delivered to each Purchaser copies of the consolidated financial statements of
the Company and its Subsidiaries listed on Schedule 5.5.  All of said financial statements (including
in each case the related schedules and notes) fairly present in all material
respects the consolidated financial position of the Company and its
Subsidiaries as of the respective dates specified in such Schedule and the
consolidated results of their operations and cash flows for the respective
periods so specified and have been prepared in accordance with GAAP
consistently applied throughout the periods involved except as set forth in the
notes thereto (subject, in the case of any interim financial statements, to
normal year-end adjustments).  Except as
disclosed in Schedule 5.5, the Company and its Subsidiaries do not have any
Material liabilities that are not

 

8

 

disclosed or reserved for on such financial statements
(including the notes thereto) or otherwise disclosed in the Disclosure
Documents.

 

Section 5.6.              Compliance with Laws, Other
Instruments, Etc.  The execution,
delivery and performance by the Company of each Note Document to which it is a
party will not (a) contravene, result in any breach of, or constitute a
default under, or result in the creation of any Lien in respect of any property
of the Company or any Subsidiary under, any indenture, mortgage, deed of trust,
loan, purchase or credit agreement, lease, corporate charter or by-laws, or any
other agreement or instrument to which the Company or any Subsidiary is bound
or by which the Company or any Subsidiary or any of their respective properties
may be bound or affected, (b) conflict with or result in a breach of any
of the terms, conditions or provisions of any order, judgment, decree, or
ruling of any court, arbitrator or Governmental Authority applicable to the
Company or any Subsidiary, or (c) violate any provision of any statute or
other rule or regulation of any Governmental Authority applicable to the
Company or any Subsidiary.

 

Section 5.7.              Governmental Authorizations, Etc.  No consent, approval or
authorization of, or registration, filing or declaration with, any Governmental
Authority is required in connection with the execution, delivery or performance
by the Company of any Note Document to which it is a party.

 

Section 5.8.              Litigation; Observance of
Agreements, Statutes and Orders.  (a) There are no actions,
suits, investigations or proceedings pending or, to the knowledge of the
Company, threatened against or affecting the Company or any Subsidiary or any
property of the Company or any Subsidiary in any court or before any arbitrator
of any kind or before or by any Governmental Authority that, individually or in
the aggregate, would reasonably be expected to have a Material Adverse Effect.

 

(b)           Neither the Company nor any
Subsidiary is in default under any term of any agreement or instrument to which
it is a party or by which it is bound, or any order, judgment, decree or ruling
of any court, arbitrator or Governmental Authority or is in violation of any
applicable law, ordinance, rule or regulation (including without
limitation Environmental Laws or the USA Patriot Act) of any Governmental
Authority, which default or violation, individually or in the aggregate, would
reasonably be expected to have a Material Adverse Effect.

 

Section 5.9.              Taxes.  The Company and its Subsidiaries
have filed all tax returns that are required to have been filed in any
jurisdiction, and have paid all taxes shown to be due and payable on such
returns and all other taxes and assessments levied upon them or their
properties, assets, income or franchises, to the extent such taxes and
assessments have become due and payable and before they have become delinquent,
except for any taxes and assessments (a) the amount of which is not
individually or in the aggregate Material or (b) the amount, applicability
or validity of which is currently being contested in good faith by appropriate
proceedings and with respect to which the Company or a Subsidiary, as the case
may be, has established adequate reserves in accordance with GAAP.  The Company knows of no basis for any other
tax or assessment that would reasonably be expected to have a Material Adverse
Effect.  The charges, accruals and
reserves on the books of the Company and its Subsidiaries in respect of
federal, state or other taxes for all fiscal periods are adequate.  The federal income tax liabilities of the

 

9

 

Company and its Subsidiaries have been finally
determined (whether by reason of completed audits or the statute of limitations
having run) for all fiscal years up to and including the fiscal year ended December 31,
2004.

 

Section 5.10.            Title to Property; Leases.  The Company and its Subsidiaries
have good and sufficient title to their respective properties which the Company
and its Subsidiaries own or purport to own that individually or in the
aggregate are Material, including all such properties reflected in the most
recent audited balance sheet referred to in Section 5.5 or purported to
have been acquired by the Company or any Subsidiary after said date (except as
sold or otherwise disposed of in the ordinary course of business), in each case
free and clear of Liens prohibited by this Agreement.  All leases that individually or in the
aggregate are Material are valid and subsisting and are in full force and
effect in all material respects.

 

Section 5.11.            Licenses, Permits, Etc. 
The Company and its Subsidiaries own, or possess the legal right to use,
all of the trademarks, copyrights, patents, material licenses and other
material intellectual property rights (collectively, “IP Rights”)
that are reasonably necessary for the operation of their respective businesses.  Set forth
on Schedule 5.11 is a list of all IP Rights registered or pending registration
with the United States Copyright Office, the United States Patent and Trademark
Office, the United Kingdom Patent Office or the European Community Trademark
Office and owned by the Company and the Subsidiary Guarantors as of the Closing
Date.  Except for such claims and
infringements that could not reasonably be expected to have a Material Adverse
Effect, no claim has been asserted and is pending by any Person challenging or
questioning the use of any IP Rights or the validity or effectiveness of any IP
Rights, nor does the Company or any Subsidiary Guarantor know of any such
claim, and, to the knowledge of the Responsible Officer of the Company or any
Subsidiary Guarantor, the use of any IP Rights by the Company or any Subsidiary
or the granting of a right or a license in respect of any IP Rights from the
Company or any Subsidiary does not infringe on the rights of any Person.  None of the IP Rights owned by any of the Company or any Subsidiary Guarantor is
subject to any licensing agreement or similar arrangement other than (a) licenses
of software in the ordinary course of business to customers, value added resellers
and distributors, (b) licenses of trademarks and tradenames in the
ordinary course of business to value added resellers and distributors, (c) as
set forth on Schedule 5.11 or (d) as otherwise not prohibited hereunder.

 

Section 5.12.            Compliance with ERISA.  (a) The Company and each
ERISA Affiliate have operated and administered each Plan in compliance with all
applicable laws except for such instances of noncompliance as have not resulted
in and would not reasonably be expected to result in a Material Adverse
Effect.  Neither the Company nor any
ERISA Affiliate has incurred any liability pursuant to Title I or IV of
ERISA or the penalty or excise tax provisions of the Code relating to employee
benefit plans (as defined in section 3 of ERISA), and no event,
transaction or condition has occurred or exists that would reasonably be
expected to result in the incurrence of any such liability by the Company or
any ERISA Affiliate, or in the imposition of any Lien on any of the rights,
properties or assets of the Company or any ERISA Affiliate, in either case
pursuant to Title I or IV of ERISA or to such penalty or excise tax
provisions or to section 401(a)(29) or 412 of the Code or section 4068 of
ERISA, other than such liabilities or Liens as would not be individually or in
the aggregate Material.

 

10

 

(b)           The present value of the aggregate
benefit liabilities under each of the Plans (other than Multiemployer Plans),
determined as of the end of such Plan’s most recently ended plan year on the
basis of the actuarial assumptions specified for funding purposes in such Plan’s
most recent actuarial valuation report, did not exceed the aggregate current
value of the assets of such Plan allocable to such benefit liabilities.  The term “benefit liabilities”
has the meaning specified in section 4001 of ERISA and the terms “current value” and “present value”
have the meaning specified in section 3 of ERISA.

 

(c)           The Company and its ERISA Affiliates
have not incurred any withdrawal liabilities (and are not subject to contingent
withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of
Multiemployer Plans that individually or in the aggregate are Material.

 

(d)           The expected post-retirement benefit
obligation (determined as of the last day of the Company’s most recently ended
fiscal year in accordance with Financial Accounting Standards Board Statement No. 106,
without regard to liabilities attributable to continuation coverage mandated by
section 4980B of the Code) of the Company and its Subsidiaries is not
Material.

 

(e)           The execution and delivery of each
Note Document and the issuance and sale of the Notes hereunder will not involve
any transaction that is subject to the prohibitions of Section 406 of
ERISA or in connection with which a tax would be imposed pursuant to Section 4975(c)(1)(A)-(D) of
the Code.  The representation by the
Company to each Purchaser in the first sentence of this Section 5.12(e) is
made in reliance upon and subject to the accuracy of such Purchaser’s
representation in Section 6.3 as to the sources of the funds to be used to
pay the purchase price of the Notes to be purchased by such Purchaser.

 

Section 5.13.            Private Offering by the Company.  Neither the Company nor anyone
acting on the Company’s behalf has offered the Notes or any similar securities
for sale to, or solicited any offer to buy any of the same from, or otherwise
approached or negotiated in respect thereof with, any Person other than the
Purchasers and not more than 50 other Institutional Investors, each of which
has been offered the Notes in connection with a private sale for
investment.  Neither the Company nor
anyone acting on its behalf has taken, or will take, any action that would
subject the issuance or sale of the Notes to the registration requirements of Section 5
of the Securities Act or to the registration requirements of any securities or
blue sky laws of any applicable jurisdiction.

 

Section 5.14.            Use of Proceeds; Margin Regulations.  The Company will apply the proceeds
of the sale of the Notes for general corporate purposes of the Company, which
may include, without limitation, refinancing existing indebtedness and funding
acquisitions.  No part of the proceeds
from the sale of the Notes hereunder will be used, directly or indirectly, for
the purpose of buying or carrying any margin stock within the meaning of
Regulation U of the Board of Governors of the Federal Reserve System
(12 CFR 221), or for the purpose of buying or carrying or trading in
any securities under such circumstances as to involve the Company in a
violation of Regulation X of said Board (12 CFR 224) or to involve
any broker or dealer in a violation of Regulation T of said Board
(12 CFR 220).  Margin stock does not
constitute more than 10% of the value of the consolidated assets of the Company
and its Subsidiaries and the Company does not have any present intention that
margin stock will constitute more than 10% of

 

11

 

the value of such assets.  As used in this Section, the terms “margin stock” and “purpose of buying or
carrying” shall have the meanings assigned to them in said
Regulation U.

 

Section 5.15.            Existing Indebtedness; Future Liens.  (a) Except
as described therein, Schedule 5.15 sets forth a complete and correct list
of all outstanding Indebtedness of the Company and its Subsidiaries as of September 30,
2007, since which date there has been no Material change in the amounts,
interest rates, sinking funds, installment payments or maturities of the
Indebtedness of the Company or its Subsidiaries.  Neither the Company nor any Subsidiary is in
default and no waiver of default is currently in effect, in the payment of any
principal or interest on any Indebtedness of the Company or such Subsidiary, and
no event or condition exists with respect to any Indebtedness of the Company or
any Subsidiary, that would permit (or that with notice or the lapse of time, or
both, would permit) one or more Persons to cause such Indebtedness to become
due and payable before its stated maturity or before its regularly scheduled
dates of payment.

 

(b)           Except as disclosed in
Schedule 5.15, neither the Company nor any Subsidiary has agreed or
consented to cause or permit in the future (upon the happening of a contingency
or otherwise) any of its property, whether now owned or hereafter acquired, to
be subject to a Lien not permitted by Section 10.5.

 

(c)           Neither the Company nor any
Subsidiary is a party to, or otherwise subject to any provision contained in,
any instrument evidencing Indebtedness of the Company or such Subsidiary, any
agreement relating thereto or any other agreement (including, but not limited
to, its charter or other organizational document) which limits the amount of,
or otherwise imposes restrictions on the incurring of, Indebtedness of the
Company, except as specifically indicated in Schedule 5.15.

 

Section 5.16.            Foreign Assets Control Regulations,
Etc.  (a) Neither the
sale of the Notes by the Company hereunder nor its use of the proceeds thereof
will violate 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.

 

(b)           Neither the Company nor any
Subsidiary is a Person described or designated in the Specially Designated
Nationals and Blocked Persons List of the Office of Foreign Assets Control or
in Section 1 of the Anti-Terrorism Order or, to the knowledge of the
Company, engages in any dealings or transactions with any such Person.  The Company and its Subsidiaries are in
compliance, in all material respects, with the USA Patriot Act.

 

(c)           No part of the proceeds from the sale
of the Notes hereunder will be used, directly or indirectly, for any payments
to any governmental official or employee, political party, official of a
political party, candidate for political office, or anyone else acting in an
official capacity, in order to obtain, retain or direct business or obtain any
improper advantage, in violation of the United States Foreign Corrupt Practices
Act of 1977, as amended, assuming in all cases that such Act applies to the
Company.

 

12

 

Section 5.17.        Status under Certain Statutes.  Neither the Company nor any
Subsidiary is an “investment company” registered or required to be registered
under the Investment Company Act of 1940, as amended, or is subject to
regulation under the Public Utility Holding Company Act of 2005, as amended,
the ICC Termination Act of 1995, as amended, or the Federal Power Act, as
amended.

 

Section 5.18.        Environmental Matters.  (a) Neither
the Company nor any Subsidiary has knowledge of any liability or has received
any notice of any liability, and no proceeding has been instituted raising any
liability against the Company or any of its Subsidiaries or any of their
respective real properties now or formerly owned, leased or operated by any of
them, or other assets, alleging any damage to the environment or violation of
any Environmental Laws, except, in each case, such as would not reasonably be
expected to result in a Material Adverse Effect.

 

(b)           Neither the Company nor any
Subsidiary has knowledge of any facts which would give rise to any liability,
public or private, of violation of Environmental Laws or damage to the
environment emanating from, occurring on or in any way related to real
properties now or formerly owned, leased or operated by any of them or to other
assets or their use, except, in each case, such as would not reasonably be
expected to result in a Material Adverse Effect.

 

(c)           Neither the Company nor any of its
Subsidiaries has stored any Hazardous Materials on real properties now or
formerly owned, leased or operated by any of them or has disposed of any
Hazardous Materials in each case in a manner contrary to any Environmental Laws
in each case in any manner that would reasonably be expected to result in a
Material Adverse Effect.

 

(d)           The Company does not own any real
property and the Company does not have any knowledge nor has it been informed
by any landlord that any properties leased or operated by the Company are not
in compliance with applicable Environmental Laws, except where failure to comply
would not reasonably be expected to result in a Material Adverse Effect.

 

Section 5.19.        Notes Rank Pari Passu. 
The obligations of the Company under the Note Documents rank pari passu in right of payment with all other Senior Secured
Indebtedness (actual or contingent).

 

Section 5.20.        Perfection of Liens. 
The Collateral Documents and/or financing statements or similar notices
thereof will, when recorded or filed for record in all public offices wherein
such filing or recordation is necessary, perfect the Liens thereof that can be
perfected by filing a financing statement under Article 9 of the UCC.

 

Section 5.21.        Filings.  All necessary
UCC financing statements and other filings have been or will be filed for
record in all public offices wherein such filing is necessary to perfect the
liens or security interests created by the Collateral Documents.  Each Collateral Document constitutes a valid
perfected first priority lien or security interest on the Collateral described
therein.

 

13

 

Section 5.22.        Representations and Warranties in Collateral
Documents.  All representations and warranties of the
Company contained in the Collateral Documents are incorporated herein by
reference with the same force and effect as though set forth herein in full.

 

SECTION 6.                                                 REPRESENTATIONS
OF EACH PURCHASER.

 

Section 6.1.           Purchase for Investment.  Each Purchaser severally
represents that it is purchasing the Notes for its own account or for one or
more separate accounts maintained by it or for the account of one or more
pension or trust funds and not with a view to the distribution thereof, provided that the disposition of such Purchaser’s or such
pension or trust funds’ property shall at all times be within such Purchaser’s
or such pension or trust funds’ control. 
Each Purchaser understands that the Notes have not been registered under
the Securities Act and may be resold only if registered pursuant to the
provisions of the Securities Act or if an exemption from registration is
available, except under circumstances where neither such registration nor such
an exemption is required by law, and that the Company is not required to
register the Notes.

 

Section 6.2.           Accredited Investor.  Each Purchaser represents that it is an “accredited
investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of
Regulation D under the Securities Act acting for its own account (and not for
the account of others) or as a fiduciary or agent for others (which others are
also “accredited investors”).   Each Purchaser further represents that such
Purchaser has had the opportunity to read all of the Company’s periodic filings
with the SEC and to ask questions of the Company and received answers
concerning the terms and conditions of the sale of the Notes.

 

Section 6.3.           Source of Funds. 
Each Purchaser severally represents that at least one of the following
statements is an accurate representation as to each source of funds (a “Source”) to be used by such Purchaser to pay the purchase
price of the Notes to be purchased by such Purchaser hereunder:

 

(a)           the Source is an “insurance company general account”
(as the term is defined in the United States Department of Labor’s Prohibited
Transaction Exemption (“PTE”) 95-60)
in respect of which the reserves and liabilities (as defined by the annual
statement for life insurance companies approved by the National Association of
Insurance Commissioners (the “NAIC Annual Statement”))
for the general account contract(s) held by or on behalf of any employee
benefit plan together with the amount of the reserves and liabilities for the
general account contract(s) held by or on behalf of any other employee
benefit plans maintained by the same employer (or affiliate thereof as defined
in PTE 95-60) or by the same employee organization in the general account do
not exceed 10% of the total reserves and liabilities of the general account
(exclusive of separate account liabilities) plus surplus as set forth in the
NAIC Annual Statement filed with such Purchaser’s state of domicile; or

 

(b)           the Source is a separate account that is maintained
solely in connection with such Purchaser’s fixed contractual obligations under
which the amounts payable, or credited, to any employee benefit plan (or its
related trust) that has any interest in such separate account (or to any
participant or beneficiary of such plan (including any

 

14

 

annuitant)) are
not affected in any manner by the investment performance of the separate
account; or

 

(c)           the Source is either (i) an insurance company
pooled separate account, within the meaning of PTE 90-1 or (ii) a bank
collective investment fund, within the meaning of the PTE 91-38 and, except as
disclosed by such Purchaser to the Company in writing pursuant to this clause
(c), no employee benefit plan or group of plans maintained by the same employer
or employee organization beneficially owns more than 10% of all assets
allocated to such pooled separate account or collective investment fund; or

 

(d)           the Source constitutes assets of an “investment fund”
(within the meaning of Part V of the QPAM Exemption) managed by a “qualified
professional asset manager” or “QPAM” (within the meaning of Part V of the
QPAM Exemption), no employee benefit plan’s assets that are included in such
investment fund, when combined with the assets of all other employee benefit
plans established or maintained by the same employer or by an affiliate (within
the meaning of Section V(c)(1) of the QPAM Exemption) of such
employer or by the same employee organization and managed by such QPAM, exceed
20% of the total client assets managed by such QPAM, the conditions of Part I(c) and
(g) of the QPAM Exemption are satisfied, as of the last day of its most
recent calendar quarter, the QPAM does not own a 10% or more interest in the
Company and no person controlling or controlled by the QPAM (applying the
definition of “control” in Section V(e) of the QPAM Exemption) owns a
20% or more interest in the Company (or less than 20% but greater than 10%, if
such person exercises control over the management or policies of the Company by
reason of its ownership interest) and (i) the identity of such QPAM and (ii) the
names of all employee benefit plans whose assets are included in such
investment fund have been disclosed to the Company in writing pursuant to this
clause (d); or

 

(e)           the Source constitutes assets of a “plan(s)” (within
the meaning of Section IV of PTE 96-23 (the “INHAM
Exemption”)) managed by an “in-house asset manager” or “INHAM”
(within the meaning of Part IV of the INHAM Exemption), the conditions of Part I(a),
(g) and (h) of the INHAM Exemption are satisfied, neither the INHAM
nor a person controlling or controlled by the INHAM (applying the definition of
“control” in Section IV(d) of the INHAM Exemption) owns a 5% or more
interest in the Company and (i) the identity of such INHAM and (ii) the
name(s) of the employee benefit plan(s) whose assets constitute the
Source have been disclosed to the Company in writing pursuant to this clause
(e); or

 

(f)            the Source is a governmental plan; or

 

(g)           the Source does not include assets of any employee
benefit plan, other than a plan exempt from the coverage of ERISA and Section 4975
of the Code.

 

As used in this Section 6.3, the terms “employee benefit plan,”  “governmental plan,”
and “separate account” shall have the
respective meanings assigned to such terms in section 3 of ERISA.

 

15

 

SECTION 7.                                                 INFORMATION
AS TO COMPANY.

 

Section 7.1.           Financial and Business Information. 
The Company shall deliver to each holder of Notes that is an
Institutional Investor:

 

(a)           Quarterly Statements — within 45 days after the end of each
quarterly fiscal period in each fiscal year of the Company (other than the last
quarterly fiscal period of each such fiscal year),

 

(i)            a consolidated balance sheet of the Company and its
Subsidiaries as at the end of such quarter, and

 

(ii)           consolidated statements of income of the Company and
its Subsidiaries, for such quarter and (in the case of the second and third
quarters) for the portion of the fiscal year ending with such quarter, and

 

(iii)          consolidated statements of cash flows of the Company
and its Subsidiaries, for the portion of the fiscal year ending with such
quarter,

 

setting forth in each case in comparative form the
figures for the corresponding periods in the previous fiscal year, all in
reasonable detail, prepared in accordance with GAAP applicable to quarterly
financial statements generally, and certified by a Senior Financial Officer as
fairly presenting, in all material respects, the financial position of the
companies being reported on and their results of operations and cash flows,
subject to changes resulting from year-end adjustments, provided
that filing with the SEC within the time period specified above of the Company’s
Quarterly Report on Form 10-Q prepared in compliance with the requirements
therefor shall be deemed to satisfy the requirements of this Section 7.1(a);

 

(b)           Annual Statements — within 90 days after the end of each
fiscal year of the Company,

 

(i)            a consolidated balance sheet of the Company and its
Subsidiaries, as at the end of such year, and

 

(ii)           consolidated statements of income, changes in
shareholders’ equity and cash flows of the Company and its Subsidiaries, for
such year,

 

setting forth in each case in comparative form the
figures for the previous fiscal year, all in reasonable detail, prepared in
accordance with GAAP, and accompanied by an opinion thereon of independent
certified public accountants of recognized national standing, which opinion
shall state that such financial statements present fairly, in all material
respects, the financial position of the companies being reported upon and their
results of operations and cash flows and have been prepared in conformity with
GAAP, and that the examination of such accountants in connection with such
financial statements has been made in accordance with generally accepted
auditing standards, and that such audit

 

16

 

provides a reasonable basis for such opinion in the
circumstances, provided that filing with the SEC
within the time period specified above of the Company’s Annual Report on Form 10-K
for such fiscal year (together with the Company’s annual report to shareholders
(when completed), if any, prepared pursuant to Rule 14a-3 under the
Exchange Act) prepared in accordance with the requirements therefor shall be
deemed to satisfy the requirements of this Section 7.1(b);

 

(c)           SEC and Other Reports — except for filings referred to in Section 7.1(a) and
(b) above, promptly upon their becoming available and, to the extent
applicable, one copy of (i) each financial statement, report, notice or
proxy statement sent by the Company or any Subsidiary to its principal lending
banks as a whole (excluding information sent to such banks in the ordinary
course of administration of a bank facility, such as information relating to
pricing and borrowing availability) or to public securities holders generally,
and (ii) each regular or periodic report, each registration statement
(without exhibits except as expressly requested by such holder), and each
prospectus and all amendments thereto filed by the Company or any Subsidiary
with the SEC and of all press releases and other statements made available
generally by the Company or any Subsidiary to the public concerning
developments that are Material, provided that,
the Company shall be deemed to have satisfied the requirements of this Section 7.1(c) if
such information is posted on “EDGAR”;

 

(d)           Notice of Default or Event of
Default —
promptly, and in any event within ten Business Days after a Responsible Officer
becomes aware of the existence of any Default or Event of Default or that any
Person has given any notice or taken any action with respect to a claimed
default hereunder or that any Person has given any notice or taken any action
with respect to a claimed default of the type referred to in Section 11(g), a written notice specifying the nature and period of
existence thereof and what action the Company is taking or proposes to take
with respect thereto;

 

(e)           ERISA Matters — promptly, and in any event within five
Business Days after a Responsible Officer becomes aware of any of the
following, a written notice setting forth the nature thereof and the action, if
any, that the Company or an ERISA Affiliate proposes to take with respect
thereto:

 

(i) with respect to any Plan, any reportable event,
as defined in Section 4043(c) of ERISA and the regulations
thereunder, for which notice thereof has not been waived pursuant to such
regulations as in effect on the date thereof; or

 

(ii) the taking by the PBGC of steps to institute,
or the threatening by the PBGC of the institution of, proceedings under Section 4042
of ERISA for the termination of, or the appointment of a trustee to administer,
any Plan, or the receipt by the Company or any ERISA Affiliate of a notice from
a Multiemployer Plan that such action has been taken by the PBGC with respect
to such Multiemployer Plan; or

 

17

 

(iii) any event, transaction or condition that would
result in the incurrence of any liability by the Company or any ERISA Affiliate
pursuant to Title I or IV of ERISA or the imposition of a penalty or
excise tax under the provisions of the Code relating to employee benefit plans,
or the imposition of any Lien on any of the rights, properties or assets of the
Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or such
penalty or excise tax provisions, if such liability or Lien, taken together
with any other such liabilities or Liens then existing, would reasonably be
expected to have a Material Adverse Effect;

 

(f)            Notices from Governmental
Authority —
promptly, and in any event within 30 days of receipt thereof, copies of any
notice to the Company or any Subsidiary from any federal or state Governmental
Authority relating to any order, ruling, statute or other law or regulation
that would reasonably be expected to have a Material Adverse Effect;

 

(g)           Requested Information — with reasonable promptness, such other
data and information relating to the business, operations, affairs, financial
condition, assets or properties of the Company or any of its Subsidiaries or
relating to the ability of the Company to perform its obligations hereunder and
under the Notes as from time to time may be reasonably requested by any such
holder of Notes or such information regarding the Company required to satisfy
the requirements of 17 C.F.R. §230.144A, as amended from time to time, in
connection with any contemplated transfer of the Notes.

 

Section 7.2.              Officer’s Certificate. 
Each set of financial statements delivered to a holder of Notes pursuant
to Section 7.1(a) or Section 7.1(b) hereof shall be
accompanied by a certificate of a Senior Financial Officer setting forth:

 

(a)           Covenant Compliance — the information required in order to
establish whether the Company was in compliance with the requirements of Section 10.1
through Section 10.7  hereof,
inclusive, during the quarterly or annual period covered by the statements then
being furnished (including with respect to each such Section, where applicable,
the calculations of the maximum or minimum amount, ratio or percentage, as the
case may be, permissible under the terms of such Sections, and the calculation
of the amount, ratio or percentage then in existence); and

 

(b)           Event of Default — a statement that such officer has
reviewed the relevant terms hereof and such review shall not have disclosed the
existence during the quarterly or annual period covered by the statements then
being furnished of any condition or event that constitutes a Default or an
Event of Default or, if any such condition or event existed or exists,
specifying the nature and period of existence thereof and what action the
Company shall have taken or proposes to take with respect thereto.

 

Section 7.3. Visitation.  The Company
shall permit the representatives of each holder of Notes that is an
Institutional Investor:

 

18

 

(a)           No Default — if no Default or Event of Default then
exists, at the expense of such holder and not more than one time per fiscal
year and upon reasonable prior notice to the Company, to visit the principal
executive office of the Company, to discuss the affairs, finances and accounts
of the Company and its Subsidiaries with the Company’s officers, and (with the
consent of the Company, which consent will not be unreasonably withheld) its
independent public accountants, and (with the consent of the Company, which
consent will not be unreasonably withheld) to visit the other offices and
properties of the Company and each Subsidiary, all at such reasonable times and
as may be reasonably requested in writing; and

 

(b)           Default — if a Default or Event of Default then
exists, at the expense of the Company, to visit and inspect any of the offices
or properties of the Company or any Subsidiary, to examine all their respective
books of account, records, reports and other papers, to make copies and extracts
therefrom, and to discuss their respective affairs, finances and accounts with
their respective officers and independent public accountants (and by this
provision the Company authorizes said accountants to discuss the affairs,
finances and accounts of the Company and its Subsidiaries), all at such times
and as often as may be requested.

 

SECTION 8.                                                 PAYMENT OF
THE NOTES.

 

Section 8.1.              Required Prepayments.  There are no regularly scheduled prepayments
of principal on the Notes.  The entire
unpaid principal amount of the Notes shall become due and payable on January 30,
2013.

 

Section 8.2.              Optional Prepayments with
Make-Whole Amount.  (a) The Company may, at its option, upon
notice as provided below, prepay at any time all, or from time to time any part
of, the Notes, in an amount not less than 5% of the aggregate principal amount
of the Notes then outstanding to be prepaid in the case of a partial prepayment
(or such lesser amount as shall be required to effect a partial prepayment
resulting from an offer of prepayment pursuant to Section 10.6), at 100%
of the principal amount so prepaid, together with interest accrued thereon to
the date of such prepayment, plus the Make-Whole Amount determined for the
prepayment date with respect to such principal amount of each Note then
outstanding to be prepaid.

 

(b)           The Company will give each holder of Notes written
notice of each optional prepayment under this Section 8.2 not less than 30
days and not more than 60 days prior to the date fixed for such
prepayment.  Each such notice shall
specify such date (which shall be a Business Day), the aggregate principal
amount of the Notes to be prepaid on such date, the principal amount of each
Note held by such holder to be prepaid (determined in accordance with Section 8.3),
and the interest to be paid on the prepayment date with respect to such
principal amount being prepaid, and shall be accompanied by a certificate of a
Senior Financial Officer as to the estimated respective Make-Whole Amount due
in connection with such prepayment (calculated as if the date of such notice
were the date of the prepayment), setting forth the details of such
computation.  Two Business Days prior to
such prepayment, the Company shall deliver to each holder of Notes a
certificate of a Senior Financial Officer specifying the calculation of each
such Make-Whole Amount as of the specified prepayment date.

 

19

 

Section 8.3.              Allocation of Partial Prepayments. 
In the case of each partial prepayment of the Notes, the principal
amount of the Notes to be prepaid (which, for the avoidance of doubt, excludes
Notes whose prepayment is permitted to be, and is, declined by any holder of
Notes) shall be allocated among all of the Notes at the time outstanding in
proportion, as nearly as practicable, to the respective unpaid principal
amounts thereof.

 

Section 8.4.              Maturity; Surrender, Etc. 
In the case of each prepayment of Notes pursuant to this Section 8,
the principal amount of each Note to be prepaid shall mature and become due and
payable on the date fixed for such prepayment (which shall be a Business Day),
together with interest on such principal amount accrued to such date and the
applicable Make-Whole Amount, if any. 
From and after such date, unless the Company shall fail to pay such
principal amount when so due and payable, together with the interest and
Make-Whole Amount, if any, as aforesaid, interest on such principal amount
shall cease to accrue.  Any Note paid or
prepaid in full shall be surrendered to the Company and cancelled and shall not
be reissued, and no Note shall be issued in lieu of any prepaid principal
amount of any Note.

 

Section 8.5.              Purchase of Notes.  The Company
will not and will not permit any Affiliate to purchase, redeem, prepay or
otherwise acquire, directly or indirectly, any of the outstanding Notes except (a) upon
the payment or prepayment of the Notes in accordance with the terms of this
Agreement and the Notes, or (b) pursuant to a written offer to purchase
any outstanding Notes made by the Company or an Affiliate pro rata to the
holders of the Notes upon the same terms and conditions.  The Company will promptly cancel all Notes
acquired by it or any Affiliate pursuant to any payment, prepayment or purchase
of Notes pursuant to any provision of this Agreement and no Notes may be issued
in substitution or exchange for any such Notes.

 

Section 8.6.              Make-Whole Amount for the Notes. 
The term “Make-Whole Amount” means with
respect to any Note an amount equal to the excess, if any, of the Discounted
Value of the Remaining Scheduled Payments with respect to the Called Principal
of such Note over, the amount of such Called Principal, provided
that the Make-Whole Amount may in no event be less than zero.  For the purposes of determining the
Make-Whole Amount, the following terms have the following meanings with respect
to the Called Principal of such Note:

 

“Called Principal” means, the principal of any Note that is to be
prepaid pursuant to Section 8.2 or has become or is declared to be
immediately due and payable pursuant to Section 12.1, as the context
requires.

 

“Discounted Value” means, the amount obtained by discounting all
Remaining Scheduled Payments from their respective scheduled due dates to the
Settlement Date with respect to such Called Principal, in accordance with
accepted financial practice and at a discount factor (applied on the same
periodic basis as that on which interest on such Note is payable) equal to the
Reinvestment Yield.

 

“Reinvestment Yield” means, 0.50% plus the yield to maturity calculated by
using (i) the yields reported, as of 10:00 A.M. (New York City
time) on the second Business Day preceding the Settlement Date on screen “PX-1”
on the Bloomberg Financial Market Service (or such other information service as
may replace Bloomberg) for actively traded U.S. Treasury securities having a
maturity equal to the Remaining Average Life of such Called Principal as of
such Settlement Date, or (ii) if such yields are not reported as of such
time or the yields reported as of such time are not ascertainable, the Treasury
Constant Maturity Series Yields reported, for the latest day for which
such yields have been so reported as of the second Business Day preceding the
Settlement Date, in Federal Reserve Statistical Release H.15 (519) (or any
comparable successor publication) for actively traded

 

20

 

U.S. Treasury securities
having a constant maturity equal to the Remaining Average Life of such Called
Principal as of such Settlement Date.  In
either case, the yield will be determined, if necessary, by (a) converting
U.S. Treasury bill quotations to bond-equivalent yields in accordance with
accepted financial practice and (b) interpolating linearly on a straight
line basis between (1) the actively traded U.S. Treasury security with the
maturity closest to and greater than the Remaining Average Life and (2) the
actively traded U.S. Treasury security with the maturity closest to and less
than the Remaining Average Life.

 

“Remaining Average Life” means, the number of years (calculated
to the nearest one-twelfth year) obtained by dividing (i) such Called
Principal into (ii) the sum of the products obtained by multiplying (a) the
principal component of each Remaining Scheduled Payment by (b) the number
of years (calculated to the nearest one-twelfth year) that will elapse between
the Settlement Date and the scheduled due date of such Remaining Scheduled
Payment.

 

“Remaining Scheduled Payments” means, all payments of such Called
Principal and interest thereon that would be due after the Settlement Date if
no payment of such Called Principal were made prior to its scheduled due date, provided that if such Settlement Date is not a date on which
interest payments are due to be made under the terms of such Note, then the
amount of the next succeeding scheduled interest payment will be reduced by the
amount of interest accrued to such Settlement Date and required to be paid on
such Settlement Date pursuant to Section 8.2 or 12.1.

 

“Settlement Date” means, the date on which such Called Principal is to
be prepaid pursuant to Section 8.2 or has become or is declared to be
immediately due and payable pursuant to Section 12.1, as the context
requires.

 

Section 8.7.              Change of Control Prepayment Offer. (a) A “Change of Control Prepayment
Event” occurs if, either (i) there are Rated Securities outstanding at the
time of such Change of Control and on the date 120 days after the date on which
a Change of Control occurs they are not rated Investment Grade or (ii) there
are no Rated Securities outstanding at the time of such Change of Control and
the Company fails to have on the date 120 days after the date on which a Change
of Control occurs Investment Grade Rated Securities (whether by failing to seek
a rating or otherwise), in each case after giving pro forma effect to the
transaction giving rise to such Change of Control.

 

(b)           Promptly upon becoming aware that a Change of Control
has occurred, and in any event not later than 15 days after becoming aware of the
Change of Control, the Company shall give written notice of such fact to all
holders of the Notes.  Promptly upon
becoming aware that

 

21

 

a Change of Control
Prepayment Event has occurred, and not later than 30 days after becoming aware
of the Change of Control Prepayment Event, the Company shall give written
notice (the “Company Notice”) of such fact to all
holders of the Notes.  The Company Notice
shall (i) describe the facts and circumstances of such Change of Control
Prepayment Event in reasonable detail, (ii) refer to this Section 8.7
and the rights of the holders hereunder and (iii) contain an offer by the
Company to prepay the entire unpaid principal amount of Notes held by each
holder in an amount equal to the Repurchase Price determined for the date of
prepayment with respect to such principal amount, which date shall be specified
in the Company Notice and shall be a Business Day not more than 60 days after
such Company Notice is given (unless otherwise agreed among the Company and
each of the holders of the Notes) (the “Prepayment Date”).

 

(c)           Each holder of Notes shall notify the Company of such
holder’s acceptance or rejection of such offer by giving written notice thereof
to the Company within fifteen (15) Business Days after receipt of such notice
from the Company; provided that, the failure by the
holder of any Note to respond to such offer in writing within such time shall
be deemed to be a rejection of such offer.

 

(d)           On the Prepayment Date, the entire outstanding
principal amount of the Notes held by each holder of Notes which has accepted
such prepayment offer shall become due and payable on the Prepayment Date in an
amount equal to the Repurchase Price.  On
the date that is two Business Days preceding the Prepayment Date, the Company
shall deliver to each holder of Notes being prepaid a statement showing the
Repurchase Price due in connection with such prepayment and setting forth the
details of the computation of such amount.

 

(e)           For purposes of this Section 8.7: the terms “Change of Control”, “Investment Grade”, “Rated Securities”  and “Rating Agency”
are defined in Schedule B.

 

SECTION 9.                                                 AFFIRMATIVE
COVENANTS.

 

The Company covenants
that so long as any of the Notes are outstanding:

 

Section 9.1.              Compliance with Law.  Without
limiting Section 10.9, the Company will, and will cause each of its
Subsidiaries to, comply with all laws, ordinances or governmental rules or
regulations to which each of them is subject, including, without limitation,
ERISA, the USA Patriot Act and Environmental Laws, and will obtain and maintain
in effect all licenses, certificates, permits, franchises and other
governmental authorizations necessary to the ownership of their respective
properties or to the conduct of their respective businesses, except in such
instances where any such law, ordinance or governmental rules or
regulation is being contested in good faith by appropriate proceedings
diligently conducted, provided that
in each case that non-compliance with such laws, ordinances or governmental rules or
regulations or failures to obtain or maintain in effect such licenses,
certificates, permits, franchises and other governmental authorizations would
not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

 

22

 

Section 9.2.              Insurance.  The Company
will, and will cause each of its Subsidiaries to, maintain, with financially
sound and reputable insurers, insurance with respect to their respective
properties and businesses against such casualties and contingencies, of such
types, on such terms and in such amounts (including deductibles, co-insurance
and self-insurance, if adequate reserves are maintained with respect thereto) as
the Company believes is customary in the case of entities of established
reputations engaged in the same or a similar business and similarly situated
except for any non-maintenance that would not reasonably be expected to have a
Material Adverse Effect.  In addition to
the foregoing, the Company shall, and shall cause each of the applicable
Subsidiary Guarantors to, maintain insurance with respect to the Collateral in
accordance with the terms and provisions of the Collateral Documents and
nothing in this Section 9.2 shall limit the obligations of the Company and
the Subsidiary Guarantors with respect to such terms and provision set forth in
the Collateral Documents.

 

Section 9.3.              Maintenance of Properties. 
The Company will, and will cause each of its Subsidiaries to, maintain
and keep, or cause to be maintained and kept, their respective properties in
good repair, working order and condition (other than ordinary wear and tear),
so that the business carried on in connection therewith may be properly conducted
at all times, provided that this Section shall
not prevent the Company or any Subsidiary from discontinuing the operation and
the maintenance of any of its properties if such discontinuance is desirable in
the conduct of its business and the Company has concluded that such
discontinuance would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. 
In addition to the foregoing, the Company shall, and shall cause each of
the applicable Subsidiary Guarantors to, keep and maintain the Collateral in
good repair, working order and condition in accordance with the terms and
provisions of the Collateral Documents and nothing in this Section 9.3
shall limit the obligations of the Company and the Subsidiary Guarantors with
respect to such terms and provision set forth in the Collateral Documents.

 

Section 9.4.              Payment of Taxes and Claims. 
The Company will, and will cause each of its Subsidiaries to, file all
tax returns required to be filed in any jurisdiction and to pay and discharge
all taxes shown to be due and payable on such returns and all other taxes,
assessments, governmental charges, or levies imposed on them or any of their
properties, assets, income or franchises, to the extent the same have become
due and payable and before they have become delinquent and all claims for which
sums have become due and payable that have or might become a Lien on properties
or assets of the Company or any Subsidiary not permitted by Section 10.5, provided that neither the Company nor any Subsidiary need
pay any such tax, assessment charge, levy or claim if (i) as long as an
extension of the foregoing exists, (ii) the amount, applicability or
validity thereof is contested by the Company or such Subsidiary on a timely
basis in good faith and in appropriate proceedings, and the Company or a
Subsidiary has established adequate reserves therefor in accordance with GAAP
on the books of the Company or such Subsidiary or (iii) the non-filing or
nonpayment, as the case may be, of all such taxes, assessments, charges, levies
and claims in the aggregate would not reasonably be expected to have a Material
Adverse Effect.

 

Section 9.5.              Corporate Existence, Etc. 
Subject to Sections 10.6 and
10.7, the Company will at all times preserve and keep in full force and effect
its corporate existence, and will at all times preserve and keep in full force
and effect the corporate existence of each of its Subsidiaries

 

23

 

(unless merged into the
Company or a Subsidiary) and all rights and franchises of the Company and its
Subsidiaries unless, in the good faith judgment of the Company, the termination
of or failure to preserve and keep in full force and effect such corporate
existence, right or franchise would not, individually or in the aggregate, have
a Material Adverse Effect.

 

Section 9.6.              Ranking of Collateral Securing the Notes. 
The obligations of the Company and the Subsidiary Guarantors under the
Note Documents shall at all times be secured by a first priority perfected lien
on the Collateral purported to be pledged in favor of the Collateral Agent
under the Collateral Documents, that permits the holders of Notes to share in
any proceeds thereof on a parity with the lenders under the Bank Credit
Agreement and other creditors party to the Intercreditor Agreement, subject in
each case to permitted liens (if any) expressly permitted by the Collateral
Documents.

 

Section 9.7.              Additional Subsidiary Guarantors.  The Company will cause any domestic
Subsidiary which is required by the terms of the Bank Credit Agreement to
become a party to, or otherwise guarantee, Indebtedness in respect of the Bank
Credit Agreement, to enter into the Subsidiary Guaranty and the other
Collateral Documents, as appropriate, and deliver to each of the holders of the
Notes (concurrently with the incurrence of any such obligation pursuant to the
Bank Credit Agreement) the following items:

 

(a)           a joinder agreement in respect of the Subsidiary
Guaranty and the other Collateral Documents, as appropriate;

 

(b)           a certificate signed by an authorized Responsible
Officer of the Company making representations and warranties to the effect of
those contained in Sections 5.4, 5.6 and 5.7, with respect to such
Subsidiary and the Subsidiary Guaranty, as applicable; and

 

(c)           an opinion of counsel (who may be in-house counsel for
the Company) addressed to each of the holders of the Notes and reasonably
satisfactory to the Required Holders, to the effect that the Subsidiary
Guaranty and the other Collateral Documents, as appropriate, by such Person has
been duly authorized, executed and delivered and that the Subsidiary Guaranty
and the other Collateral Documents, as appropriate, each constitute the legal,
valid and binding contract and agreement of such Person enforceable in
accordance with its terms, except as an enforcement of such terms may be
limited by bankruptcy, insolvency, fraudulent conveyance and similar laws
affecting the enforcement of creditors’ rights generally and by general
equitable principles.

 

The Subsidiary Guarantors shall be released from their
respective obligations under the Subsidiary Guaranty upon the satisfaction of
the terms and provisions of Sections 2.2(c) hereof.

 

Section 9.8.              Books and Records. The Company will, and will cause each of
its Subsidiaries to, maintain proper books of record and account in conformity
with GAAP and all applicable requirements of any Governmental Authority having
legal or regulatory jurisdiction over the Company or such Subsidiary, as the
case may be.

 

24

 

SECTION 10.                                           NEGATIVE
COVENANTS.

 

The Company covenants that so long as any of the Notes
are outstanding:

 

Section 10.1.            Consolidated Capital. 
The Company will not at any time permit Consolidated Capital to be less
than the sum of (a) $300,000,000, plus (b) 25% of Consolidated Net
Income (but only if a positive number) for each fiscal year beginning with the
fiscal year ending December 31, 2008.

 

Section 10.2.               Consolidated Leverage Ratio. 
As of the last day of each fiscal quarter of the Company, the Company
will not permit the ratio of Consolidated Funded Indebtedness to Consolidated
EBITDA (Consolidated EBITDA to be calculated as at the end of each fiscal
quarter for the four consecutive fiscal quarters then ended) to exceed 2.75 to
1.00.

 

Section 10.3.               Consolidated Interest Coverage
Ratio.  As of the last day of each fiscal quarter of
the Company, the Company will not permit the ratio of Consolidated EBITDA to
Consolidated Interest Charges for each period of four consecutive fiscal
quarters (Consolidated EBITDA and Consolidated Interest Charges to be
calculated as at the end of each fiscal quarter for the four consecutive fiscal
quarters then ended) to be less than 3.00
to 1.00.

 

Section 10.4.               Priority Indebtedness. The Company will not at any time permit
the aggregate amount of all Priority Indebtedness to exceed 15% of Consolidated
Capital (Consolidated Capital to be determined as of the end of the then most
recently ended fiscal quarter of the Company).

 

Section 10.5.               Limitation on Liens. 
The Company will not, and will not permit any of its Subsidiaries to,
directly or indirectly create, incur, assume or permit to exist (upon the
happening of a contingency or otherwise) any Lien on or with respect to any
property or asset (including, without limitation, any document or instrument in
respect of goods or accounts receivable) of the Company or any such Subsidiary,
whether now owned or held or hereafter acquired, or any income or profits
therefrom, or assign or otherwise convey any right to receive income or profits
(unless it makes, or causes to be made, effective provision whereby the Notes
will be equally and ratably secured with any and all other obligations thereby
secured, such security to be pursuant to an agreement reasonably satisfactory
to the Required Holders and, in any such case, the Notes shall have the
benefit, to the fullest extent that, and with such priority as, the holders of
the Notes may be entitled under applicable law, of an equitable Lien on such
property), except:

 

(a)           Liens for taxes, assessments or other governmental
charges that are not yet due and payable or the payment of which is not at the
time required by Section 9.4;

 

(b)           any attachment or judgment Lien, unless the judgment
it secures shall not, within 60 days after the entry thereof, have been
discharged or execution thereof stayed pending appeal, or shall not have been
discharged within 60 days after the expiration of any such stay;

 

25

 

(c)           Liens incidental to the conduct of business or the
ownership of properties and assets (including landlords’, carriers’,
warehousemen’s, mechanics’, materialmen’s and other similar Liens for sums not
yet due and payable) and Liens to secure the performance of bids, tenders,
leases, or trade contracts, or to secure statutory obligations, surety or
appeal bonds or other Liens incurred in the ordinary course of business and not
in connection with the borrowing of money;

 

(d)           leases or subleases granted to others, easements,
rights-of-way, restrictions and other similar charges or encumbrances, in each
case incidental to the ownership of property or assets or the ordinary conduct
of the business of the Company or any of its Subsidiaries, or Liens incidental
to minor survey exceptions and the like, provided that
such Liens do not, in the aggregate, materially detract from the value of such
property;

 

(e)           Liens securing Indebtedness of a Subsidiary owed to
the Company or to a Subsidiary, provided that any
such Liens are subordinated pursuant to a written agreement in scope, form and
substance satisfactory to the Required Holders to any Liens created by the
Collateral Documents;

 

(f)            (i) pledges or deposits in the ordinary course of
business in connection with workers’ compensation, unemployment insurance and
other social security legislation, other than any Lien imposed by ERISA or (ii) any
lien arising by operation of law and any lien arising in the ordinary course of
trading (including any lien on a brokerage or trading account of the Company or
any Subsidiary where such lien arises in the ordinary course of business of
trading, including, for the avoidance of doubt, any lien in favor of
Euroclear);

 

(g)           any interest of title of a lessor under, and Liens
arising from UCC financing statements (or equivalent filings, registrations or
agreements in foreign jurisdictions) relating to, leases permitted by this
Agreement;

 

(h)           normal and customary rights of setoff upon deposits of
cash in favor of banks or other depository institutions;

 

(i)            Liens of a collection bank arising under Section 4-210
of the UCC on items in the course of collection;

 

(j)            Liens of sellers of goods to the Company and any of
its Subsidiaries arising under Article 2 of the UCC or similar provisions
of applicable law in the ordinary course of business, covering only the goods
sold and securing only the unpaid purchase price for such goods and related
expenses;

 

(k)           Liens existing as of the Closing Date and reflected in
Schedule 10.5;

 

(l)            Liens securing Indebtedness under the Bank Credit
Agreement, the Bank Collateral Documents and the Collateral Documents and any
Indebtedness permitted to be secured by the Collateral in favor of the
Collateral Agent under the terms of the

 

26

 

Intercreditor Agreement, in each case so long as the Intercreditor
Agreement is in full force and effect;

 

(m)          Liens incurred after the Closing Date given to secure
the payment of the purchase price incurred in connection with the acquisition,
construction or improvement of property (other than accounts receivable or
inventory) useful and intended to be used in carrying on the business of the
Company or a Subsidiary, including Liens existing on such property at the time of
acquisition or construction thereof or Liens incurred within 365 days of such
acquisition or completion of such construction or improvement, provided that (i) the Lien shall attach solely to the
property acquired, purchased, constructed or improved; (ii) at the time of
acquisition, construction or improvement of such property (or, in the case of
any Lien incurred within three hundred sixty-five (365) days of such
acquisition or completion of such construction or improvement, at the time of
the incurrence of the Indebtedness secured by such Lien), the aggregate amount
remaining unpaid on all Indebtedness secured by Liens on such property, whether
or not assumed by the Company or a Subsidiary, shall not exceed the lesser of (y) the
cost of such acquisition, construction or improvement or (z) the Fair
Market Value of such property (as determined in good faith by one or more
officers of the Company to whom authority to enter into the transaction has
been delegated by the board of directors of the Company); and (iii) at the
time of such incurrence and after giving effect thereto, no Default or Event of
Default would exist;

 

(n)           any Lien existing on property of a Person immediately
prior to its being consolidated with or merged into the Company or a Subsidiary
or its becoming a Subsidiary, or any Lien existing on any property acquired by
the Company or any Subsidiary at the time such property is so acquired (whether
or not the Indebtedness secured thereby shall have been assumed), provided that (i) no such Lien shall have been created
or assumed in contemplation of such consolidation or merger or such Person’s
becoming a Subsidiary or such acquisition of property, (ii) each such Lien
shall extend solely to the item or items of property so acquired and, if
required by the terms of the instrument originally creating such Lien, other
property which is an improvement to or is acquired for specific use in
connection with such acquired property, and (iii) at the time of such
incurrence and after giving effect thereto, no Default or Event of Default
would exist;

 

(o)           any extensions, renewals or
replacements of any Lien permitted by the preceding subparagraphs (k), (l), (m) and
(n) of this Section 10.5, provided that (i) no
additional property shall be encumbered by such Liens, (ii) the unpaid
principal amount of the Indebtedness or other obligations secured thereby
(including any unused commitment applicable thereto) shall not be increased on
or after the date of any extension, renewal or replacement, and (iii) at
such time and immediately after giving effect thereto, no Default or Event of
Default shall have occurred and be continuing; and

 

(p)           Liens securing Priority Indebtedness of the Company or
any Subsidiary, provided that the aggregate
principal amount of any such Priority Indebtedness shall be permitted by Section 10.4.

 

27

 

Section 10.6.     Sales of Assets. 
The
Company will not, and will not permit any Subsidiary to, sell, lease or
otherwise dispose of any substantial part (as defined below) of the assets of
the Company and its Subsidiaries; provided, however,
that the Company or any Subsidiary may sell, lease or otherwise dispose of
assets constituting a substantial part of the assets of the Company and its
Subsidiaries if such assets are sold in an arms length transaction and, at such
time and after giving effect thereto, no Default or Event of Default shall have
occurred and be continuing and an amount equal to the net proceeds received
from such sale, lease or other disposition (but only with respect to that
portion of such assets that exceeds the definition of “substantial part” set
forth below) shall be used within 365 days of such sale, lease or disposition,
in any combination:

 

(1)       to acquire productive assets (including equity
interest in any Person that becomes a Subsidiary) used or useful in carrying on
the business of the Company and its Subsidiaries and having a value at least
equal to the value of such assets sold, leased or otherwise disposed of; and/or

 

(2)       to prepay or retire Senior Secured Indebtedness of the
Company and/or its Subsidiaries, provided that  (i) the Company shall offer to prepay each outstanding
Note in a principal amount which equals the Ratable Portion for such Note, and (ii) any
such prepayment of the Notes shall be made at par, together with accrued
interest thereon to the date of such prepayment, but without the payment of the
Make-Whole Amount.  Any offer of
prepayment of the Notes pursuant to this Section 10.6 shall be given to
each holder of the Notes by written notice that shall be delivered not less
than fifteen (15) days and not more than sixty (60) days prior to the proposed
prepayment date.  Each such notice shall
state that it is given pursuant to this Section and that the offer set
forth in such notice must be accepted by such holder in writing and shall also
set forth (i) the prepayment date, (ii) a description of the
circumstances which give rise to the proposed prepayment and (iii) a
calculation of the Ratable Portion for such holder’s Notes.  Each holder of the Notes which desires to
have its Notes prepaid shall notify the Company in writing delivered not less
than five (5) Business Days prior to the proposed prepayment date of its
acceptance of such offer of prepayment. 
Prepayment of Notes pursuant to this Section 10.6 shall be made in
accordance with Section 8.2 (but without payment of the Make-Whole
Amount).

 

As used in this Section 10.6,
a sale, lease or other disposition of assets shall be deemed to be a “substantial part” of the assets of the Company and its
Subsidiaries if the book value of such assets, when added to the book value of
all other assets sold, leased or otherwise disposed of by the Company and its
Subsidiaries during the period of 12 consecutive months ending on the date of
such sale, lease or other disposition, exceeds 10% of the book value of
Consolidated Total Assets, determined as of the end of the fiscal quarter
immediately preceding such sale, lease or other disposition; provided that there shall be excluded from any
determination of a “substantial part” any (i) sale or disposition of
assets in the ordinary course of business of the Company and its Subsidiaries, (ii) any
transfer of assets from the Company to any 
Subsidiary or from any Subsidiary to the Company or a  Subsidiary and (iii) any sale or
transfer of property acquired by the Company or any Subsidiary after the date
of this Agreement to any Person within 365 days following the acquisition or
construction of such property by the Company or

 

28

 

any Subsidiary if the
Company or a Subsidiary shall concurrently with such sale or transfer, lease
such property, as lessee.

 

Section 10.7.     Merger and Consolidation. 
The Company will not, and will not permit any of its Subsidiaries to,
consolidate with or merge with any other Person or convey, transfer or lease substantially
all of its assets in a single transaction or series of transactions to any
Person; provided that:

 

(1)       any Subsidiary of the Company may (x) consolidate
with or merge with, or convey, transfer or lease substantially all of its
assets in a single transaction or series of transactions to, (i) the
Company or a Subsidiary so long as in any merger or consolidation involving the
Company, the Company shall be the surviving or continuing corporation or (ii) any
other Person so long as the survivor is a Subsidiary, or (y) convey,
transfer or lease all of its assets in compliance with the provisions of Section 10.6;
and

 

(2)       the foregoing restriction does not apply to the
consolidation or merger of the Company with, or the conveyance, transfer or
lease of substantially all of the assets of the Company in a single transaction
or series of transactions to, any Person so long as:

 

(a)           the successor formed by such consolidation or the
survivor of such merger or the Person that acquires by conveyance, transfer or
lease substantially all of the assets of the Company as an entirety, as the
case may be (the “Successor Corporation”), shall
be a solvent entity organized and existing under the laws of the United States
of America, any State thereof or the District of Columbia;

 

(b)          if the Company is not the Successor Corporation, such
Successor Corporation shall have executed and delivered to each holder of Notes
its assumption of the due and punctual performance and observance of each
covenant and condition of this Agreement, the Notes and the Collateral
Documents (pursuant to such agreements, instruments and filings as shall be
reasonably satisfactory to the Required Holders), and the Successor Corporation
shall have caused to be delivered to each holder of Notes (A) an opinion
of nationally recognized independent counsel, to the effect that all agreements
or instruments effecting such assumption are enforceable in accordance with
their terms and (B) an acknowledgment from each Subsidiary Guarantor that
the Subsidiary Guaranty and the Collateral Documents to which it is a party
continue in full force and effect; and

 

(c)           immediately after giving effect to such transaction no
Default or Event of Default would exist.

 

Section 10.8.     Transactions with Affiliates. 
The Company will not and will not permit any Subsidiary to enter into
directly or indirectly any Material transaction or Material group of related
transactions (including without limitation the purchase, lease, sale or
exchange of properties of any kind or the rendering of any service) with any
Affiliate (other than the Company or another Subsidiary), except in the
ordinary course and upon fair and reasonable

 

29

 

terms that are not materially less favorable to the Company
or such Subsidiary, taken as a whole, than would be obtainable in a comparable
arm’s-length transaction with a Person not an Affiliate.  Compensation and reimbursement of expenses of
officers and directors approved by the Company’s compensation committee shall
be deemed to be fair and reasonable for purposes of this Section 10.8.

 

Section 10.9.     Terrorism  Sanctions  Regulations. 
The Company will not and will not permit any Subsidiary to (a) become
a Person described or designated in the Specially Designated Nationals and
Blocked Persons List of the Office of Foreign Assets Control or in Section 1
of the Anti-Terrorism Order or (b) to its knowledge, engage in any
dealings or transactions with any such Person.

 

Section 10.10.   Limitation on Proprietary Trading. 
The Company will not and will not permit any Subsidiary to engage in any trading activity for its own
account (it being agreed that matched principal transactions will not be
considered trading for its own account) other than (a) any activity entered
into in the ordinary course of business for the purposes of managing its cash
and (b) any trading of securities for its own account; provided that after giving effect to any such purchase of
securities the aggregate amount of the initial purchase price of all such
securities held by the Company and its Subsidiaries shall not exceed 5% of
Consolidated Capital at the time of such purchase.

 

SECTION 11.              EVENTS OF
DEFAULT.

 

An “Event of Default”
shall exist if any of the following conditions or events shall occur and be
continuing:

 

(a)     the Company defaults in the payment of any principal
or Make-Whole Amount, if any, on any Note when the same becomes due and
payable, whether at maturity or at a date fixed for prepayment or by
declaration or otherwise; or

 

(b)     the Company defaults in the payment of any interest on
any Note for more than five Business Days after the same becomes due and
payable; or

 

(c)     the Company defaults in the performance of or
compliance with any term contained in Sections 10.1 through 10.7,
inclusive; or

 

(d)     the Company defaults in the performance of or
compliance with any term contained herein (other than those referred to in
paragraphs (a), (b) and (c) of this Section 11) or contained in
any other Note Document, or any Subsidiary Guarantor defaults in the
performance of or compliance with any term of the Subsidiary Guaranty or any
other Note Document to which it is a party, and such default is not remedied
within 30 days after the earlier of (i) a Responsible Officer obtaining
actual knowledge of such default or (ii) the Company or any Subsidiary
Guarantor receiving written notice of such default from any holder of a Note
(any such written notice to be identified as a “notice of default” and to refer
specifically to this paragraph (d) of Section 11); or

 

30

 

(e)           any Subsidiary Guaranty or Collateral Document ceases
to be a legally valid, binding and enforceable obligation or contract of a
Subsidiary Guarantor (other than upon a release of any Subsidiary Guarantor
from a Subsidiary Guaranty in accordance with the terms of Section 2.2(c) hereof),
or any Subsidiary Guarantor or any party by, through or on account of any such
Person, challenges the validity, binding nature or enforceability of any such
Subsidiary Guaranty or Collateral Document; or

 

(f)            any representation or warranty made in writing by or
on behalf of the Company or Subsidiary Guarantor in any Note Document or by any
officer of the Company or any Subsidiary Guarantor in any writing furnished in
connection with the transactions contemplated by any Note Document proves to
have been false or incorrect in any material respect on the date as of which
made; or

 

(g)           (i) the Company or any Subsidiary is in default
(as principal or as guarantor or other surety) in the payment of any principal
of or premium or make-whole amount or interest (in the payment amount of at
least $100,000) on any Indebtedness other than the Notes that is outstanding in
an aggregate principal amount of at least $25,000,000 beyond any period of
grace provided with respect thereto, or (ii) the Company or any Subsidiary
is in default in the performance of or compliance with any term of any
instrument, mortgage, indenture or other agreement relating to any Indebtedness
other than the Notes in an aggregate principal amount of at least $25,000,000
or any other condition exists, and as a consequence of such default or
condition such Indebtedness has become, or has been declared, due and payable
or one or more Persons have the right to declare such Indebtedness to be due
and payable before its stated maturity or before its regularly scheduled dates
of payment, or (iii) as a consequence of the occurrence or continuation of
any event or condition (other than the passage of time or the right of the
holder of Indebtedness to convert such Indebtedness into equity interests), the
Company or any Subsidiary has become obligated to purchase or repay
Indebtedness other than the Notes before its regular maturity or before its
regularly scheduled dates of payment in an aggregate outstanding principal
amount of at least $25,000,000 or one or more Persons have the right to require
the Company or any Subsidiary to purchase or repay such Indebtedness; or

 

(h)           the Company, any Material Subsidiary or any Subsidiary
Guarantor (i) is generally not paying, or admits in writing its inability
to pay, its debts as they become due, (ii) files, or consents by answer or
otherwise to the filing against it of, a petition for relief or reorganization
or arrangement or any other petition in bankruptcy, for liquidation or to take
advantage of any bankruptcy, insolvency, reorganization, moratorium or other
similar law of any jurisdiction, (iii) makes an assignment for the benefit
of its creditors, (iv) consents to the appointment of a custodian,
receiver, trustee or other officer with similar powers with respect to it or
with respect to any substantial part of its property, (v) is adjudicated
as insolvent or to be liquidated, or (vi) takes corporate action for the
purpose of any of the foregoing; or

 

(i)            a court or Governmental Authority of competent
jurisdiction enters an order appointing, without consent by the Company, any of
its Material Subsidiaries or

 

31

 

any Subsidiary Guarantor, a custodian, receiver,
trustee or other officer with similar powers with respect to it or with respect
to any substantial part of its property, or constituting an order for relief or
approving a petition for relief or reorganization or any other petition in
bankruptcy or for liquidation or to take advantage of any bankruptcy or
insolvency law of any jurisdiction, or ordering the dissolution, winding-up or
liquidation of the Company, any of its Material Subsidiaries or any Subsidiary Guarantor,
or any such petition shall be filed against the Company, any of its Material
Subsidiaries or any Subsidiary Guarantor (including but not limited to the
commencement of any liquidation initiated by Securities Investor Protection
Corp. pursuant to The Securities Investor Protection Act of 1970) and such
petition shall not be dismissed within 60 days; or

 

(j)            a final judgment or judgments at any one time
outstanding for the payment of money aggregating in excess of $25,000,000 are
rendered against one or more of the Company, its Subsidiaries or any Subsidiary
Guarantor and which judgments are not, within 60 days after entry thereof,
bonded, discharged or stayed pending appeal, or are not discharged within 60
days after the expiration of such stay; or

 

(k)           the Lien created by any Collateral Document ceases to
be a first priority (subject to Permitted Liens) perfected Lien on the
Collateral purported to be secured thereby, except as otherwise expressly
permitted to be released by such Collateral Document; or

 

(l)            if (i) any Plan shall fail to satisfy the minimum
funding standards of ERISA or the Code for any plan year or part thereof or a
waiver of such standards or extension of any amortization period is sought or
granted under Section 412 of the Code, (ii) a notice of intent to
terminate any Plan shall have been or is reasonably expected to be filed with
the PBGC or the PBGC shall have instituted proceedings under Section 4042
of ERISA to terminate or appoint a trustee to administer any Plan or the PBGC
shall have notified the Company or any ERISA Affiliate that a Plan may become a
subject of any such proceedings, (iii) the aggregate “amount of unfunded
benefit liabilities” (within the meaning of Section 4001(a)(18) of ERISA)
under all Plans, determined in accordance with Title IV of ERISA, shall
exceed $25,000,000, (iv) the Company or any ERISA Affiliate shall have
incurred or is reasonably expected to incur any liability pursuant to Title I
or IV of ERISA or the penalty or excise tax provisions of the Code relating to
employee benefit plans, (v) the Company or any ERISA Affiliate withdraws
from any Multiemployer Plan, or (vi) the Company or any Subsidiary
establishes or amends any employee welfare benefit plan that provides
post-employment welfare benefits in a manner that would increase the liability
of the Company or any Subsidiary thereunder; and any such event or events
described in clauses (i) through (vi) above, either individually or
together with any other such event or events, would reasonably be expected to
have a Material Adverse Effect.

 

As used in Section 11(l), the terms “employee benefit plan” and “employee
welfare benefit plan” shall have the respective meanings assigned to
such terms in Section 3 of ERISA.

 

32

 

SECTION 12.              REMEDIES
ON DEFAULT, ETC.

 

Section 12.1.     Acceleration.  (a) If
an Event of Default with respect to the Company described in paragraph (h) or
(i) of Section 11 (other than an Event of Default described in clause
(i) of paragraph (h) or described in clause (vi) of paragraph (h) by
virtue of the fact that such clause encompasses clause (i) of paragraph
(h)) has occurred, all the Notes then outstanding shall automatically become
immediately due and payable.

 

(b)     If any other Event of Default has occurred and is
continuing, any holder or holders of more than 50% in aggregate principal
amount of the Notes at the time outstanding may at any time at its or their
option, by notice or notices to the Company, declare all the Notes then
outstanding to be immediately due and payable.

 

(c)     If any Event of Default described in paragraph (a) or
(b) of Section 11 has occurred and is continuing with respect to any
Notes, any holder or holders of Notes at the time outstanding affected by such Event
of Default may at any time, at its or their option, by notice or notices to the
Company, declare all the Notes held by such holder or holders to be immediately
due and payable.

 

Upon any Note
becoming due and payable under this Section 12.1, whether automatically or
by declaration, such Note will forthwith mature and the entire unpaid principal
amount of such Note, plus (i) all accrued and unpaid interest thereon
(including, but not limited to, interest accrued thereon at the Default Rate)
and (ii) the Make-Whole Amount determined in respect of such principal
amount (to the full extent permitted by applicable law), shall all be
immediately due and payable, in each and every case without presentment,
demand, protest or further notice, all of which are hereby waived.  The Company acknowledges, and the parties
hereto agree, that each holder of a Note has the right to maintain its
investment in the Notes free from repayment by the Company (except as herein
specifically provided for) and that any provision for payment of a Make-Whole
Amount by the Company in the event that the Notes are prepaid or are
accelerated as a result of an Event of Default, is intended to provide
compensation for the deprivation of such right under such circumstances.

 

Section 12.2.     Other Remedies.  If any
Default or Event of Default has occurred and is continuing, and irrespective of
whether any Notes have become or have been declared immediately due and payable
under Section 12.1, the holder of any Note at the time outstanding may proceed
to protect and enforce the rights of such holder by an action at law, suit in
equity or other appropriate proceeding, whether for the specific performance of
any agreement contained herein or in any Note, or for an injunction against a
violation of any of the terms hereof or thereof, or in aid of the exercise of
any power granted hereby or thereby or by law or otherwise.

 

Section 12.3.     Rescission.  At any time
after the Notes have been declared due and payable pursuant to clause (b) or
(c) of Section 12.1, the holders of more than 50% in aggregate
principal amount of the Notes then outstanding, by written notice to the
Company, may rescind and annul any such declaration and its consequences if (a) the
Company has paid all overdue interest on the Notes, all principal of and
Make-Whole Amount on any Notes that are due and payable and are unpaid other
than by reason of such declaration, and all interest on such overdue principal
and

 

33

 

Make-Whole Amount and (to the extent permitted by
applicable law) any overdue interest in respect of the Notes, at the Default
Rate, (b) neither the Company nor any other Person shall have paid any
amounts which have become due solely by reason of such declaration, (c) all
Events of Default and Defaults, other than non-payment of amounts that have
become due solely by reason of such declaration, have been cured or have been
waived pursuant to Section 17, and (d) no judgment or decree has been
entered for the payment of any monies due pursuant hereto or to any Notes.  No rescission and annulment under this Section 12.3
will extend to or affect any subsequent Event of Default or Default or impair
any right consequent thereon.

 

Section 12.4.     No Waivers or Election of Remedies, Expenses, Etc. 
No course of dealing and no delay on the part of any holder of any Note
in exercising any right, power or remedy shall operate as a waiver thereof or
otherwise prejudice such holder’s rights, powers or remedies.  No right, power or remedy conferred by this
Agreement or by any Note upon any holder thereof shall be exclusive of any
other right, power or remedy referred to herein or therein or now or hereafter
available at law, in equity, by statute or otherwise.  Without limiting the obligations of the
Company under Section 15, the Company will pay to the holder of each Note
on demand such further amount as shall be sufficient to cover all costs and
expenses of such holder incurred in any enforcement or collection under this Section 12,
including, without limitation, reasonable attorneys’ fees, expenses and
disbursements.

 

SECTION 13.              REGISTRATION;
EXCHANGE; SUBSTITUTION OF NOTES.

 

Section 13.1.     Registration of Notes.  The Company
shall keep at its principal executive office a register for the registration
and registration of transfers of Notes. 
The name and address of each holder of one or more Notes, each transfer
thereof and the name and address of each transferee of one or more Notes shall
be registered in such register.  Prior to
due presentment for registration of transfer, the Person in whose name any Note
shall be registered shall be deemed and treated as the owner and holder thereof
for all purposes hereof, and the Company shall not be affected by any notice or
knowledge to the contrary.  The Company
shall give to any holder of a Note that is an Institutional Investor promptly
upon request therefor, a complete and correct copy of the names and addresses
of all registered holders of Notes.

 

Section 13.2.     Transfer and Exchange of Notes. 
Upon surrender of any Note to the Company at the address and to the
attention of the designated officer (all as specified in Section 18(iii)),
for registration of transfer or exchange (and in the case of a surrender for
registration of transfer accompanied by a written instrument of transfer duly
executed by the registered holder of such Note or such holder’s attorney duly
authorized in writing and accompanied by the relevant name, address and other
information for notices of each transferee of such Note or part thereof),
within ten Business Days thereafter, the Company shall execute and deliver, at
the Company’s expense (except as provided below), one or more new Notes (as
requested by the holder thereof) in exchange therefor, in an aggregate
principal amount equal to the unpaid principal amount of the surrendered
Note.  Each such new Note shall be
payable to such Person as such holder may request and shall be substantially in
the form of Exhibit I hereto.  Each
such new Note shall be dated and bear interest from the date to which interest
shall have been paid on the surrendered Note or dated the date of the
surrendered Note if no interest shall have been paid thereon.  The Company may require payment of a sum
sufficient to cover any

 

34

 

stamp tax or governmental charge imposed in respect of
any such transfer of Notes.  Notes shall
not be transferred in denominations of less than $500,000, provided
that if necessary to enable the registration of transfer by a holder of its
entire holding of Notes, one Note may be in a denomination of less than
$500,000.  Any transferee, by its
acceptance of a Note registered in its name (or the name of its nominee), shall
be deemed to have made the representation set forth in Section 6.3.

 

The Notes have not been registered under the
Securities Act or under the securities laws of any state and may not be
transferred or resold unless registered under the Securities Act and all
applicable state securities laws or unless an exemption from the requirement
for such registration is available, except under circumstances where neither
such registration nor such exemption is required by law.

 

Section 13.3. Intercreditor Agreement. 
The Purchasers have executed and delivered the Intercreditor Agreement
that sets forth the relative rights of the holders of the Senior Secured
Indebtedness as provided therein, and each subsequent holder of a Note shall be
bound by the terms and provisions of the Intercreditor Agreement.

 

Section 13.4.             Replacement of Notes. 
Upon receipt by the Company at the address and to the attention of the
designated officer (all as specified in Section 18(iii)) of evidence
reasonably satisfactory to it of the ownership of and the loss, theft,
destruction or mutilation of any Note (which evidence shall be, in the case of
an Institutional Investor, notice from such Institutional Investor of such
ownership and such loss, theft, destruction or mutilation), and

 

(a)           in the case of loss, theft or destruction, of
indemnity reasonably satisfactory to it (provided that
if the holder of such Note is, or is a nominee for, an original Purchaser or
another holder of a Note with a minimum net worth of at least $50,000,000 or a
Qualified Institutional Buyer, such Person’s own unsecured agreement of
indemnity shall be deemed to be satisfactory), or

 

(b)           in the case of mutilation, upon surrender and
cancellation thereof,

 

the Company at its own expense shall execute and
deliver not more than ten Business Days following satisfaction of such
conditions, in lieu thereof, a new Note, dated and bearing interest from the
date to which interest shall have been paid on such lost, stolen, destroyed or
mutilated Note or dated the date of such lost, stolen, destroyed or mutilated
Note if no interest shall have been paid thereon.

 

SECTION 14.              PAYMENTS
ON NOTES.

 

Section 14.1. Place of Payment.  Subject to Section 14.2,
payments of principal, Make-Whole Amount, if any, and interest becoming due and
payable on the Notes shall be made in New York, New York at the principal
office of Banc of America Securities LLC in such jurisdiction.  The Company may at any time, by notice to
each holder of a Note, change the place of payment of the Notes so long as such
place of payment shall be either the principal office of

 

35

 

the Company in such jurisdiction or the principal
office of a bank or trust company in such jurisdiction.

 

Section 14.2.     Home Office Payment.  So long as
any Purchaser or such Purchaser’s nominee shall be the holder of any Note, and
notwithstanding anything contained in Section 14.1 or in such Note to the
contrary, the Company will pay all sums becoming due on such Note for
principal, Make-Whole Amount, if any, and interest by the method and at the
address specified for such purpose for such Purchaser on Schedule A
hereto, or by such other method or at such other address as such Purchaser
shall have from time to time specified to the Company in writing for such
purpose (as reasonably acknowledged by the Company), without the presentation
or surrender of such Note or the making of any notation thereon, except that
upon written request of the Company made concurrently with or reasonably
promptly after payment or prepayment in full of any Note, such Purchaser shall surrender
such Note for cancellation, reasonably promptly after any such request, to the
Company at its principal executive office or at the place of payment most
recently designated by the Company pursuant to Section 14.1.  Prior to any sale or other disposition of any
Note held by any Purchaser or such Purchaser’s nominee, such Purchaser will, at
its election, either endorse thereon the amount of principal paid thereon and
the last date to which interest has been paid thereon or surrender such Note to
the Company in exchange for a new Note or Notes pursuant to Section 13.2.  The Company will afford the benefits of this Section 14.2
to any Institutional Investor that is the direct or indirect transferee of any
Note.

 

SECTION 15.              EXPENSES,
ETC.

 

Section 15.1.     Transaction Expenses.  Whether or
not the transactions contemplated hereby and by the other Note Documents are
consummated, the Company will pay all costs and expenses (including reasonable
attorneys’ fees of one special counsel for the Purchasers as a group) incurred
by the Purchasers in connection with the consummation of the transactions
contemplated hereby and by the other Note Documents.  The Company further agrees to pay all costs
and expenses (including reasonable attorneys’ fees of one special counsel for
the Purchasers as a group and, if reasonably necessary due to local law
considerations, a local counsel in each applicable jurisdiction, for the
Purchasers as a group) incurred by the holders of the Notes in connection with
any amendments, waivers or consents requested by the Company under or in
respect of any Note Document (whether or not such amendment, waiver or consent
becomes effective), including, without limitation: (a) the costs and
expenses incurred in enforcing or defending (or determining whether or how to
enforce or defend) any rights under any Note Document or in responding to any
subpoena or other legal process or informal investigative demand issued in
connection with any Note Document, or by reason of being a Holder of any Note
and (b) the costs and expenses, including financial advisors’ fees,
incurred in connection with the insolvency or bankruptcy of the Company or any
Subsidiary or in connection with any work-out or restructuring of the
transactions contemplated hereby and by the other Note Documents.  The Company will pay, and will save each
Purchaser and each other Holder of a Note harmless from, all claims in respect
of any fees, costs or expenses, if any, of brokers and finders (other than
those, if any, retained by a Purchaser or other Holder in connection with its
purchase of the Notes).

 

36

 

Section 15.2.     Survival.  The
obligations of the Company under this Section 15 will survive the payment
or transfer of any Note, the enforcement, amendment or waiver of any provision
of any Note Document, and the termination of any Note Document.

 

SECTION 16.              SURVIVAL
OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.

 

All representations and warranties contained herein
shall survive the execution and delivery of this Agreement and the Notes, the
purchase or transfer by any Purchaser of any such Note or portion thereof or
interest therein and the payment of any Note may be relied upon by any
subsequent holder of any such Note, regardless of any investigation made at any
time by or on behalf of any Purchaser or any other holder of any such
Note.  All statements contained in any
certificate or other instrument delivered by or on behalf of the Company pursuant
to this Agreement shall be deemed representations and warranties of the Company
under this Agreement.  Subject to the
preceding sentence, this Agreement and the other Note Documents embody the
entire agreement and understanding between the Purchasers and the Company and
supersede all prior agreements and understandings relating to the subject
matter hereof.

 

SECTION 17.              AMENDMENT
AND WAIVER.

 

Section 17.1.     Requirements.  This
Agreement and the Notes may be amended, and the observance of any term hereof
or of the Notes may be waived (either retroactively or prospectively), with
(and only with) the written consent of the Company and the Required Holders,
except that (i) no amendment or waiver of any of the provisions of Section 1,
2, 3, 4, 5, 6 or 21 hereof, or any defined term (as it is used in any such
Section), will be effective as to any holder of Notes unless consented to by
such holder of Notes in writing, and (ii) no such amendment or waiver may,
without the written consent of all of the holders of Notes at the time
outstanding affected thereby, (A) subject to the provisions of Section 12
relating to acceleration or rescission, change the amount or time of any
prepayment or payment of principal of, or reduce the rate or change the time of
payment or method of computation of interest (if such change results in a
decrease in the interest rate) or of the Make-Whole Amount on, the Notes, (B) change
the percentage of the principal amount of the Notes the holders of which are
required to consent to any such amendment or waiver, or (C) amend any of
Sections 8, 11(a), 11(b), 12, 17 or 20.

 

Section 17.2.     Solicitation of Holders of Notes.

 

(a)     Solicitation.  The Company
will provide each holder of the Notes (irrespective of the amount of Notes then
owned by it) with sufficient information, sufficiently far in advance of the
date a decision is required, to enable such holder to make an informed and
considered decision with respect to any proposed amendment, waiver or consent
in respect of any of the provisions hereof or of the Notes.  The Company will deliver executed or true and
correct copies of each amendment, waiver or consent effected pursuant to the
provisions of this Section 17 to each holder of outstanding Notes promptly
following the date on which it is executed and delivered by, or receives the consent
or approval of, the requisite holders of Notes.

 

(b)     Payment.  The Company
will not directly or indirectly pay or cause to be paid any remuneration,
whether by way of supplemental or additional interest, fee or otherwise, or
grant

 

37

 

any security or provide other credit support, to any
holder of Notes as consideration for or as an inducement to the entering into
by any holder of Notes of any waiver or amendment of any of the terms and
provisions hereof unless such remuneration is concurrently paid, or security is
concurrently granted or other credit support is concurrently provided, on the
same terms, ratably to each holder of Notes then outstanding even if such
holder did not consent to such waiver or amendment.

 

(c)       Consent in Contemplation of Transfer. 
Any consent made pursuant to this Section 17 by a holder of Notes
that has transferred or has agreed to transfer its Notes to the Company, any
Subsidiary or any Affiliate of the Company and has provided or has agreed to
provide such written consent as a condition to such transfer shall be void and
of no force or effect except solely as to such holder, and any amendments
effected or waivers granted or to be effected or granted that would not have
been or would not be so effected or granted but for such consent (and the
consents of all other holders of Notes that were acquired under the same or
similar conditions) shall be void and of no force or effect except solely as to
such holder.

 

Section 17.3.     Binding Effect, Etc.  Any amendment
or waiver consented to as provided in this Section 17 applies equally to
all holders of Notes and is binding upon them and upon each future holder of
any Note and upon the Company without regard to whether such Note has been
marked to indicate such amendment or waiver. 
No such amendment or waiver will extend to or affect any obligation,
covenant, agreement, Default or Event of Default not expressly amended or
waived or impair any right consequent thereon. 
No course of dealing between the Company and the holder of any Note nor
any delay in exercising any rights hereunder or under any Note shall operate as
a waiver of any rights of any holder of such Note.  As used herein, the term “this Agreement” and
references thereto shall mean this Agreement as it may from time to time be
amended or supplemented.

 

Section 17.4.     Notes Held by Company, Etc. 
Solely for the purpose of determining whether the holders of the
requisite percentage of the aggregate principal amount of Notes then outstanding
approved or consented to any amendment, waiver or consent to be given under
this Agreement or the Notes, or have directed the taking of any action provided
herein or in the Notes to be taken upon the direction of the holders of a
specified percentage of the aggregate principal amount of Notes then
outstanding, Notes directly or indirectly owned by the Company or any of its
Affiliates shall be deemed not to be outstanding.

 

SECTION 18.              NOTICES.

 

All notices and communications provided for hereunder
shall be in writing and sent (a) by telecopy if the sender on the same day
sends a confirming copy of such notice by a recognized overnight delivery
service (charges prepaid), (b) by a recognized overnight delivery service
(with charges prepaid), or (c) other than in the case of notices to the
Company, by posting to IntraLinks® or a similar service reasonably acceptable
to the Required Holders if the sender on the same day sends or causes to be
sent notice of such posting by email or in accordance with clause (a) or
(b) above.  Any such notice must be
sent:

 

38

 

(i)            if
to a Purchaser or such Purchaser’s nominee, to such Purchaser or such Purchaser’s
nominee at the address or, in the case of clause (c) above, the email
address, specified for such communications in Schedule A to this
Agreement, or at such other address or email address as such Purchaser or such
Purchaser’s nominee shall have specified to the Company in writing pursuant to
this Section 18;

 

(ii)           if
to any other holder of any Note, to such holder at such address as such other
holder shall have specified to the Company in writing pursuant to this Section 18,
or

 

(iii)          if to the Company, to the Company at its address set forth at the
beginning hereof to the attention of Chief Financial Officer, with a copy to
the General Counsel, or at such other address as the Company shall have
specified to the holder of each Note in writing pursuant to this Section 18.

 

Notices under this Section 18 will be deemed
given only when actually received.

 

SECTION 19.              REPRODUCTION
OF DOCUMENTS.

 

This Agreement and all documents relating thereto,
including, without limitation, (a) consents, waivers and modifications
that may hereafter be executed, (b) documents received by any Purchaser at
the Closing (except the Notes themselves), and (c) financial statements,
certificates and other information previously or hereafter furnished to any
Purchaser, may be reproduced by such Purchaser by any photographic,
photostatic, electronic, digital, or other similar process and such Purchaser
may destroy any original document so reproduced.  The Company agrees and stipulates that, to
the extent permitted by applicable law, any such reproduction shall be
admissible in evidence as the original itself in any judicial or administrative
proceeding (whether or not the original is in existence and whether or not such
reproduction was made by such Purchaser in the regular course of business) and
any enlargement, facsimile or further reproduction of such reproduction shall
likewise be admissible in evidence.  This
Section 19 shall not prohibit the Company or any other holder of Notes
from contesting any such reproduction to the same extent that it could contest
the original, or from introducing evidence to demonstrate the inaccuracy of any
such reproduction.

 

SECTION 20.              CONFIDENTIAL
INFORMATION.

 

For the purposes of this Section 20, “Confidential Information” means information delivered to
any Purchaser by or on behalf of the Company or any Subsidiary in connection
with the transactions contemplated by or otherwise pursuant to this Agreement
that is proprietary in nature and that was clearly marked or labeled or
otherwise adequately identified when received by such Purchaser as being
confidential information of the Company or such Subsidiary, provided that such term does not include information that (a) was
publicly known or otherwise known to such Purchaser prior to the time of such
disclosure, (b) subsequently becomes publicly known through no act or
omission by such Purchaser or any Person acting on such Purchaser’s behalf, (c) otherwise
becomes known to such Purchaser other than through disclosure by the Company or
any Subsidiary or (d) constitutes financial statements delivered to such
Purchaser

 

39

 

under Section 7.1
that are otherwise publicly available. 
Each Purchaser will maintain the confidentiality of such Confidential
Information in accordance with procedures adopted by such Purchaser in good
faith to protect confidential information of third parties delivered to such
Purchaser, provided that such Purchaser may deliver
or disclose Confidential Information to (i) such Purchaser’s directors,
trustees, officers, employees, agents, attorneys and affiliates (to the extent
such disclosure reasonably relates to the administration of the investment
represented by such Purchaser’s Notes), (ii) such Purchaser’s financial
advisors and other professional advisors who agree to hold confidential the
Confidential Information substantially in accordance with the terms of this Section 20,
(iii) any other holder of any Note, (iv) any Institutional Investor
to which such Purchaser sells or offers to sell such Note or any part thereof
or any participation therein (if such Person has agreed in writing prior to its
receipt of such Confidential Information to be bound by the provisions of this Section 20
for the benefit of the Company), (v) any Person from which such Purchaser
offers to purchase any security of the Company (if such Person has agreed in
writing prior to its receipt of such Confidential Information to be bound by
the provisions of this Section 20), (vi) any federal or state
regulatory authority having jurisdiction over such Purchaser, (vii) the
National Association of Insurance Commissioners or any similar organization, or
any nationally recognized rating agency that requires access to information
about such Purchaser’s investment portfolio, or (viii) any other Person to
which such delivery or disclosure may be necessary or appropriate (w) to
effect compliance with any law, rule, regulation or order applicable to such
Purchaser, (x) in response to any subpoena or other legal process, (y) in
connection with any litigation to which such Purchaser is a party, or (z) if
an Event of Default has occurred and is continuing, to the extent such
Purchaser may reasonably determine such delivery and disclosure to be necessary
or appropriate in the enforcement or for the protection of the rights and
remedies under such Purchaser’s Notes, the Subsidiary Guaranty, this Agreement
or any other Note Document.  In
connection with the delivery or disclosure of any Confidential Information
pursuant to clause (viii)(x) or clause (viii)(y), the applicable Purchaser
shall endeavor (to the extent permitted by law) to give prior notice of such
proposed delivery or disclosure to the Company, provided that,
such Purchaser shall not be liable in any manner for the failure to give the
Company such prior notice of such proposed delivery or disclosure of
Confidential Information.  Each holder of
a Note, by its acceptance of a Note, will be deemed to have agreed to be bound
by and to be entitled to the benefits of this Section 20 as though it were
a party to this Agreement.  On reasonable
request by the Company in connection with the delivery to any holder of a Note
of information required to be delivered to such holder under this Agreement or
requested by such holder (other than a holder that is a party to this Agreement
or its nominee), such holder will enter into an agreement with the Company
embodying the provisions of this Section 20.

 

SECTION 21.              SUBSTITUTION
OF PURCHASER.

 

Each Purchaser shall have the right to substitute any
one of its Affiliates as the purchaser of the Notes that it has agreed to
purchase hereunder, by written notice to the Company, which notice shall be
signed by both such Purchaser and such Affiliate, shall contain such Affiliate’s
agreement to be bound by this Agreement and shall contain a confirmation by
such Affiliate of the accuracy with respect to it of the representations set
forth in Section 6.  Upon receipt of
such notice, any reference to such Purchaser in this Agreement (other than in
this Section 21), shall be deemed to refer to such Affiliate in lieu of such
original Purchaser.  In the event that
such

 

40

 

Affiliate is so
substituted as a Purchaser hereunder and such Affiliate thereafter transfers to
such original Purchaser all of the Notes then held by such Affiliate, upon
receipt by the Company of notice of such transfer, any reference to such
Affiliate as a “Purchaser” in this Agreement (other than in this Section 21),
shall no longer be deemed to refer to such Affiliate, but shall refer to such
original Purchaser, and such original Purchaser shall again have all the rights
of an original holder of the Notes under this Agreement.

 

SECTION 22.              MISCELLANEOUS.

 

Section 22.1.        Successors and Assigns. 
All covenants and other agreements contained in this Agreement by or on
behalf of any of the parties hereto bind and inure to the benefit of their
respective successors and assigns (including, without limitation, any
subsequent holder of a Note) whether so expressed or not.

 

Section 22.2.        Payments Due on Non-Business Days. 
Anything in this Agreement or the Notes to the contrary notwithstanding
(but without limiting the requirement in Section 8.4 that the notice of
any optional prepayment specify a Business Day as the date fixed for such
prepayment), any payment of principal of or Make-Whole Amount or interest on
any Note that is due on a date other than a Business Day shall be made on the
next succeeding Business Day without including the additional days elapsed in
the computation of the interest payable on such next succeeding Business Day; provided that if the maturity date of any Note is a date
other than a Business Day, the payment otherwise due on such maturity date
shall be made on the next succeeding Business Day and shall include the
additional days elapsed in the computation of interest payable on such next
succeeding Business Day.

 

Section 22.3.        Accounting Terms.  All
accounting terms used herein which are not expressly defined in this Agreement
have the meanings respectively given to them in accordance with GAAP.  Except as otherwise specifically provided
herein, (i) all computations made pursuant to this Agreement shall be made
in accordance with GAAP, and (ii) all financial statements shall be
prepared in accordance with GAAP.

 

Section 22.4.        Severability.  Any provision
of this Agreement that is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall
(to the full extent permitted by law) not invalidate or render unenforceable
such provision in any other jurisdiction.

 

Section 22.5.        Construction.  Each covenant
contained herein shall be construed (absent express provision to the contrary)
as being independent of each other covenant contained herein, so that
compliance with any one covenant shall not (absent such an express contrary
provision) be deemed to excuse compliance with any other covenant.  Where any provision herein refers to action
to be taken by any Person, or which such Person is prohibited from taking, such
provision shall be applicable whether such action is taken directly or
indirectly by such Person.

 

For the avoidance of doubt, all Schedules and Exhibits
attached to this Agreement shall be deemed to be a part hereof.

 

41

 

Section 22.6.        Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be
an original but all of which together shall constitute one instrument.  Each counterpart may consist of a number of
copies hereof, each signed by less than all, but together signed by all, of the
parties hereto.

 

Section 22.7.        Governing Law.  This Agreement
shall be construed and enforced in accordance with, and the rights of the
parties shall be governed by, the law of the State of New York excluding
choice-of-law principles of the law of such State that would permit the
application of the laws of a jurisdiction other than such State.

 

Section 22.8.        Jurisdiction and Process; Waiver of Jury Trial.   (a) The Company
irrevocably submits to the non-exclusive jurisdiction of any New York State or
federal court sitting in the Borough of Manhattan, The City of New York, over
any suit, action or proceeding arising out of or relating to this Agreement or
the Notes.  To the fullest extent
permitted by applicable law, the Company irrevocably waives and agrees not to
assert, by way of motion, as a defense or otherwise, any claim that it is not
subject to the jurisdiction of any such court, any objection that it may now or
hereafter have to the laying of the venue of any such suit, action or
proceeding brought in any such court and any claim that any such suit, action
or proceeding brought in any such court has been brought in an inconvenient
forum.

 

(b)       The Company consents to process being served by or on
behalf of any holder of Notes in any suit, action or proceeding of the nature
referred to in Section 22.8(a) by mailing a copy thereof by
registered or certified mail (or any substantially similar form of mail),
postage prepaid, return receipt requested, to it at its address specified in Section 18
or at such other address of which such holder shall then have been notified
pursuant to said Section.  The Company
agrees that such service upon receipt (i) shall be deemed in every respect
effective service of process upon it in any such suit, action or proceeding and
(ii) shall, to the fullest extent permitted by applicable law, be taken
and held to be valid personal service upon and personal delivery to it.  Notices hereunder shall be conclusively
presumed received as evidenced by a delivery receipt furnished by the United
States Postal Service or any reputable commercial delivery service.

 

(c)       Nothing in this Section 22.8 shall affect the
right of any holder of a Note to serve process in any manner permitted by law,
or limit any right that the holders of any of the Notes may have to bring
proceedings against the Company in the courts of any appropriate jurisdiction
or to enforce in any lawful manner a judgment obtained in one jurisdiction in
any other jurisdiction.

 

(d)       THE PARTIES HERETO HEREBY WAIVE TRIAL BY JURY IN ANY
ACTION BROUGHT ON OR WITH RESPECT TO THIS AGREEMENT, THE NOTES OR ANY OTHER
DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THEREWITH.

 

Section 22.9.     Process Agent.  The Company
hereby designates itself as agent to accept and acknowledge, on behalf of each
Subsidiary Guarantor, service of any and all process which may be served in any
such action, suit or proceeding with respect to any matter as to which each
Subsidiary Guarantor has submitted to jurisdiction as set forth in Section 17
of the Subsidiary

 

42

 

Guaranty, and it agrees that service upon it shall be
deemed in every respect service of process upon the applicable Subsidiary
Guarantor, or its successors or assigns, and, to the extent permitted by
applicable law, shall be taken and held to be valid personal service upon the
applicable Subsidiary Guarantor on its behalf. 
Such designation and appointment shall be irrevocable.  The Company will take all action, including
the filing of any and all documents and instruments, as may be necessary so
that the Company shall at all times be located in the County of New York, State
of New York or shall have an agent for service of process for the above
purposes in the County of New York, State of New York.

 

*   *   *  
*   *

 

43

 

The execution hereof by the Purchasers shall
constitute a contract among the Company and the Purchasers for the uses and
purposes hereinabove set forth.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  GFI GROUP INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

44

 

Accepted
as of the date first written above.

 

 

	
   

  	
  [VARIATION]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

45

 

DEFINED TERMS

 

As used herein, the following terms have the respective meanings set
forth below or set forth in the Section hereof following such term:

 

“Affiliate” means, at any time,
and with respect to any Person, (a) any other Person that at such time
directly or indirectly through one or more intermediaries Controls, or is
Controlled by, or is under common Control with, such first Person, and (b) any
Person beneficially owning or holding, directly or indirectly, 10% or more of
any class of voting or equity interests of the Company or any Subsidiary or any
Person of which the Company and its Subsidiaries beneficially own or hold, in
the aggregate, directly or indirectly, 10% or more of any class of voting or
equity interests.  As used in this
definition, “Control” means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities,
by contract or otherwise.  Unless the
context otherwise clearly requires, any reference to an “Affiliate”
is a reference to an Affiliate of the Company.

 

“Anti-Terrorism Order” means
Executive Order No. 13,224 of September 24, 2001, Blocking Property
and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or
Support Terrorism, 66 U.S. Fed. Reg. 49, 079 (2001), as amended.

 

“Attributable Indebtedness”
means, with respect to any Person on any date, (a) in respect of any
Capital Lease, the capitalized amount thereof that would appear on a balance sheet
of such Person prepared as of such date in accordance with GAAP, (b) in
respect of any Synthetic Lease, the capitalized amount of the remaining lease
payments under the relevant lease that would appear on a balance sheet of such
Person prepared as of such date in accordance with GAAP if such lease were
accounted for as a Capital Lease, (c) in respect of any Securitization
Transaction, the outstanding principal amount of such financing.

 

“Bank Collateral Documents” means a collective reference to the Intercreditor
Agreement and any other security documents executed by the Company or the
Subsidiary Guarantors which grant liens (in accordance with the Intercreditor
Agreement) for the benefit of the creditors under the Bank Credit Agreement.

 

“Bank Credit Agreement” means the
Amended and Restated Credit Agreement dated as of February 24, 2006 by and
among the Company, certain Subsidiaries of the Company named therein, GFI
Holdings Limited, a company incorporated under the laws of England and Wales,
Bank of America, N.A., as administrative agent, and the other financial
institutions party thereto, as amended, restated, joined, supplemented or
otherwise modified from time to time, and any renewals, extensions or
replacements thereof, which constitute the primary bank credit facility of the
Company and its Subsidiaries.

 

“Business Day” means any day
other than a Saturday, a Sunday or a day on which commercial banks in New York,
New York are required or authorized to be closed.

 

SCHEDULE B

(to Note Purchase Agreement)

 

 

“Capital Lease” means, at any
time, a lease with respect to which the lessee is required concurrently to
recognize the acquisition of an asset and the incurrence of a liability in
accordance with GAAP.

 

“Capital Lease Obligation” means,
with respect to any Person, the amount of the obligation of such Person as the
lessee under a Capital Lease which would, in accordance with GAAP, appear as a
liability on a balance sheet of such Person.

 

“Capital Stock” means (i) in
the case of a corporation, capital stock, (ii) in the case of an
association or business entity, any and all shares, interests, participations,
rights or other equivalents (however designated) of capital stock, (iii) in
the case of a partnership, partnership interests (whether general or limited), (iv) in
the case of a limited liability company, membership interests and (v) any
other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing
Person.

 

“Change of Control” means an
event or series of events by which:

 

                   (a)        any “person” or “group” (as such terms
are used in Sections 13(d) and 14(d) of the Securities Exchange Act
of 1934, but excluding any employee benefit plan of such person or its subsidiaries,
and any person or entity acting in its capacity as trustee, agent or other
fiduciary or administrator of any such plan) other than Jersey Partners Inc.
(or its successors) so long as Michael Gooch owns and controls at least a
majority of the outstanding equity voting interests of Jersey Partners Inc.,
becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under
the Securities Exchange Act of 1934, except that a person or group shall be
deemed to have “beneficial ownership” of all Capital Stock that such person or
group has the right to acquire, whether such right is exercisable immediately
or only after the passage of time (such right, an “option right”)), directly or
indirectly, of 35% of the Capital Stock of the Company entitled to vote for
members of the board of directors or equivalent governing body of the Company
on a fully diluted basis (and taking into account all such securities that such
person or group has the right to acquire pursuant to any option right); or

 

                   (b)        for so long as any Subordinated
Indebtedness is outstanding, the occurrence of a “Change of
Control” (or any comparable term) under, and as defined in the
documentation evidencing such Subordinated Indebtedness; or

 

                   (c)        Michael Gooch does not own, directly or
indirectly, the Designated Amount of GFI Shares.

 

“Closing” is defined in Section 3.

 

“Closing Date” is defined in Section 3.

 

“Code” means the Internal Revenue
Code of 1986, as amended from time to time, and the rules and regulations
promulgated thereunder from time to time.

 

B-2

 

“Collateral” means a collective
reference to all personal property with respect to which Liens in favor of the
Collateral Agent, for the ratable benefit of itself and the Holders of Notes
and the holders of the other Senior Secured Indebtedness, are purported to be
granted pursuant to and in accordance with the terms of the Collateral
Documents.

 

“Collateral Agent” is defined in
the Intercreditor Agreement.

 

“Collateral Documents” means a
collective reference to the Intercreditor Agreement, the Security Agreement,
the Pledge Agreement, and other security documents as may be executed and
delivered by the Company and the Subsidiary Guarantors in favor of the
Collateral Agent, for the ratable benefit of itself and the holders of Notes
and the holders of the other Senior Secured Indebtedness, as such agreements
may be amended or modified from time to time in accordance with the terms
thereof.

 

“Company” means GFI Group Inc., a
Delaware corporation.

 

“Confidential Information” is
defined in Section 20.

 

“Consolidated Capital” means, as
of the date of any determination thereof, the aggregate of consolidated
shareholders’ equity and preferred equity of the Company and its Subsidiaries,
as of such date determined in accordance with GAAP.

 

“Consolidated Funded Indebtedness”
means as of any date of determination the total amount of all Funded
Indebtedness of the Company and its Subsidiaries determined on a consolidated
basis in accordance with GAAP.

 

“Consolidated EBITDA” shall mean,
for any period, Consolidated Net Income for such period, plus, to the extent
deducted in computing such Consolidated Net Income and without duplication, (a) depreciation,
depletion, if any, and amortization expense for such period, (b) Consolidated
Interest Charges for such period, (c) income tax expense for such period,
and (d) other non cash charges for such period, all as determined in
accordance with GAAP.  For purposes of
calculating Consolidated EBITDA for any period of four consecutive quarters, if
during such period the Company or any Subsidiary shall have acquired or
disposed of any Person or acquired or disposed of all or substantially all of
the operating assets of any Person, Consolidated EBITDA for such period shall
be calculated after giving pro forma effect thereto as if such transaction
occurred on the first day of such period.

 

“Consolidated Interest Charges”
means, for any period, for the Company and its Subsidiaries on a consolidated
basis, an amount equal to the sum of (i) all interest, premium payments,
debt discount, fees, charges and related expenses of the Company and its
Subsidiaries in connection with Indebtedness (including capitalized interest
and other fees and charges incurred under any asset securitization program) or
in connection with the deferred purchase price of assets, in each case to the
extent treated as interest in accordance with GAAP, provided,
however, that for purposes of the calculation of interest, any
interest expense of the Company and its Subsidiaries paid to a clearing
organization for trades not cleared shall be netted against interest income of
the Company and its Subsidiaries received from a clearing organization for

 

B-3

 

trades not cleared, provided
further that such amount shall not be less than $0, plus (ii) the portion of rent expense with respect to
such period under Capital Leases or Synthetic Leases that is treated as
interest in accordance with GAAP.

 

“Consolidated Net Income” shall
mean, for any period, the consolidated net income (or loss) of the Company and
its Subsidiaries for such period, determined on a consolidated basis in
accordance with GAAP.

 

“Consolidated Total Assets”
means, as of any date of determination, the total amount of all assets of the
Company and its Subsidiaries, determined on a consolidated basis in accordance
with GAAP.

 

“DBRS” means Dominion Bond Rating
Service.

 

“Default” means an event or
condition the occurrence or existence of which would, with the lapse of time or
the giving of notice or both, become an Event of Default.

 

“Default Rate” means with respect
to the Notes that rate of interest that is 2% per annum above the rate of
interest stated in clause (a) of the first paragraph of the Notes.

 

“Designated Amount” means an
amount of GFI Shares equal to at least 4,000,000 GFI Shares.  For purposes of this definition, the number
of GFI Shares owned by Michael Gooch shall be adjusted for any GFI Stock
Adjustment to equal the number of GFI Shares owned by Michael Gooch immediately
prior to such GFI Stock Adjustment multiplied by a fraction (i) the
numerator of which shall be the total number of outstanding GFI Shares owned by
Michael Gooch immediately after such GFI Stock Adjustment, and (ii) the
denominator of which shall be the total number of GFI Shares owned by Michael
Gooch immediately prior to such GFI Stock   Adjustment. 
An adjustment made hereunder shall become effective immediately on the
record date in the case of a GFI Stock Dividend, and shall become effective
immediately on the effective date in the case of any GFI Stock Split. 

 

“Earn Out Obligation” means, with
respect to an acquisition, all obligations of the Company or its Subsidiaries
to make earn out or other contingency payments pursuant to the documentation
relating to such acquisition.  The amount
of any Earn Out Obligation shall be deemed to be the aggregate liability in
respect thereof as recorded on the balance sheet of the Company and its
Subsidiaries in accordance with GAAP.

 

“Environmental Laws” means any
and all federal, state, local, and foreign statutes, laws, regulations,
ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or governmental restrictions relating to
pollution and the protection of the environment or the release of any materials
into the environment, including but not limited to those related to Hazardous
Materials.

 

“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended from time to time, and the rules and
regulations promulgated thereunder from time to time in effect.

 

B-4

 

“ERISA Affiliate” means any trade
or business (whether or not incorporated) that is treated as a single employer
together with the Company under section 414 of the Code.

 

“Event of Default” is defined in Section 11.

 

“Fair Market Value” means, at any
time and with respect to any property, the sale value of such property that
would be realized in an arm’s-length sale at such time between an informed and
willing buyer and an informed and willing seller (neither being under a
compulsion to buy or sell), as reasonably determined in the good faith opinion
of the Company’s board of directors.

 

“Fitch” means Fitch, Inc.

 

“Funded Indebtedness” means, as
to any Person at a particular time, without duplication, all of the following,
whether or not included as indebtedness or liabilities in accordance with GAAP:

 

                   (a)        all obligations for borrowed money,
whether current or long-term (including the Notes) and all obligations of such
Person evidenced by bonds, debentures, notes, loan agreements or other similar
instruments;

 

                   (b)        all purchase money Indebtedness;

 

                   (c)        all obligations arising under letters of
credit (including standby and commercial), bankers’ acceptances, bank
guaranties, surety bonds and similar instruments;

 

                   (d)        all obligations in respect of the
deferred purchase price of property or services (other than trade accounts
payable in the ordinary course of business), including without limitation, any
Earn Out Obligations;

 

                   (e)        the Attributable Indebtedness of Capital
Leases and Synthetic Leases;

 

                    (f)        the Attributable Indebtedness of
Securitization Transactions;

 

                   (g)        all preferred stock or other equity
interests providing for mandatory redemptions, sinking fund or like payments
prior to the maturity date of the Notes;

 

                   (h)        all Guaranties with respect to
Indebtedness of the types specified in clauses (a) through (g) above
of another Person; and

 

                    (i)        all Indebtedness of the types referred
to in clauses (a) through (h) above of any partnership or joint
venture for which such Person is liable for all of the obligations of such
joint venture (other than a joint venture that is itself a corporation or
limited liability company) in which such Person is a general partner or joint
venturer, except to the extent such Indebtedness is express made non-recourse
to such Person.

 

B-5

 

For purposes hereof, (x) the amount of any obligation arising
under letters of credit (including standby and commercial), bankers’
acceptances, bank guaranties, surety bonds and similar instruments shall be the
face amount thereof, and (y) the amount of any Guaranty shall be the
amount of the Indebtedness subject to such Guaranty.

 

“GAAP” means generally accepted
accounting principles as in effect from time to time in the United States of
America.

 

“GFI Shares” means shares of
voting common stock of the Company.

 

“GFI Stock Adjustment” means a
GFI Stock Dividend or a GFI Stock Split.

 

“GFI Stock Dividend” means any
dividend or distribution in shares of stock of the Company to the holders of
GFI Shares.

 

“GFI Stock Split” means, a
subdivision of the outstanding GFI Shares into a larger number of GFI Shares,
or a combination of the outstanding GFI Shares into a smaller number of GFI
Shares, or an issuance by reclassification of GFI Shares.

 

“Governmental Authority” means

 

                   (a)        the government of

 

                    (i)        the United States of America or any
state or other political subdivision thereof, or

 

                   (ii)        any jurisdiction in which the Company or
any Subsidiary conducts all or any part of its business, or which has
jurisdiction over any properties of the Company or any Subsidiary, or

 

                   (b)        any entity exercising executive,
legislative, judicial, regulatory or administrative functions of, or pertaining
to, any such government.

 

“Guaranty” means, with respect to
any Person, any obligation (except the endorsement in the ordinary course of
business of negotiable instruments for deposit or collection) of such Person
guaranteeing or in effect guaranteeing any Indebtedness, dividend or other
obligation of any other Person in any manner, whether directly or indirectly,
including (without limitation) obligations incurred through an agreement,
contingent or otherwise, by such Person:

 

                   (a)        to purchase such Indebtedness or
obligation or any property constituting security therefor primarily for the
purpose of assuring the obligee of such Indebtedness or obligation of the
ability of any other Person to make payment of the Indebtedness or obligation;

 

                   (b)        to advance or supply funds (i) for
the purchase or payment of such Indebtedness or obligation, or (ii) to
maintain any working capital or other balance sheet 

 

B-6

 

condition or any income statement condition of any other Person or
otherwise to advance or make available funds for the purchase or payment of
such Indebtedness or obligation;

 

                   (c)        to lease properties or to purchase
properties or services primarily for the purpose of assuring the obligee of
such Indebtedness or obligation of the ability of any other Person to make
payment of the Indebtedness or obligation; or

 

                   (d)        otherwise to assure the owner of such
Indebtedness or obligation against loss in respect thereof.

 

In any computation of the Indebtedness or other liabilities of the
obligor under any Guaranty, the Indebtedness or other obligations that are the
subject of such Guaranty shall be assumed to be direct obligations of such obligor.

 

“Hazardous Material” means any
and all pollutants, toxic or hazardous wastes or other substances that might
pose a hazard to health and safety, the removal of which may be required or the
generation, manufacture, refining, production, processing, treatment, storage,
handling, transportation, transfer, use, disposal, release, discharge,
spillage, seepage or filtration of which is or shall be restricted,
prohibited or penalized by any applicable law including, but not limited to,
asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls,
petroleum, petroleum products, lead based paint, radon gas or similar
restricted, prohibited or penalized substances.

 

“holder” means, with respect to
any Note, the Person in whose name such Note is registered in the register
maintained by the Company pursuant to Section 13.1.

 

“Indebtedness”  means, with
respect to any Person, without duplication,

 

                   (a)        all Funded Indebtedness;

 

                   (b)        net obligations under Swap Contracts;

 

                   (c)        all Guaranties with respect to
outstanding Indebtedness of the types specified in clauses (a) and (b) of
any other Person; and

 

                   (d)        all Indebtedness of the types referred
to in clauses (a) through (c) above of any partnership or joint
venture for which such Person is liable for all of the obligations of such
joint venture (other than a joint venture that is itself a corporation or
limited liability company) in which such Person is a general partner or joint
venturer, except to the extent such Indebtedness is express made non-recourse to
such Person.

 

For purposes hereof, (y) the amount of any net obligation under
any Swap Contract on any date shall be deemed to be the Swap Termination Value
thereof as of such date, and (z) the amount of any Guaranty shall be the
amount of the Indebtedness subject to such Guaranty.

 

B-7

 

“Institutional Investor” means (a) any
original purchaser of a Note, (b) any holder of more than $2,000,000 of
the aggregate principal amount of the Notes then outstanding, and (c) any
bank, trust company, savings and loan association or other financial
institution, any pension plan, any investment company, any insurance company,
any broker or dealer, or any other similar financial institution or entity,
regardless of legal form.

 

“Intercreditor Agreement” means
that certain intercreditor agreement dated as of the date of this Agreement
among the Purchasers, Company and Subsidiary Guarantors, the Collateral Agent
and the other creditors of the Company and Subsidiary Guarantors party thereto.

 

“Investments” shall mean all
investments, in cash or by delivery of property made, directly or indirectly in
any Person, whether by acquisition of shares of capital stock, Indebtedness or
other obligations or securities or by loan, advance, capital contribution or
otherwise.

 

“Investment Grade” means a rating
of at least BBB- by S&P, Baa3 by Moody’s, BBB- by Fitch or BBB(low) by DBRS
(as applicable).

 

“IP Rights” is defined in Section 5.11.

 

“Lien” means, with respect to any
Person, any mortgage, lien, pledge, charge, security interest or other
encumbrance, or any interest or title of any vendor, lessor, lender or other
secured party to or of such Person under any conditional sale or other title
retention agreement (other than an operating lease) or Capital Lease, upon or
with respect to any property or asset of such Person (including, in the case of
stock, shareholder agreements, voting trust agreements and all similar
arrangements).

 

“Make-Whole Amount” shall have
the meaning set forth in Section 8.6 with respect to any Note.

 

“Material” means material in
relation to the business, operations, affairs, financial condition, assets or
properties of the Company and its Subsidiaries taken as a whole.

 

“Material Adverse Effect” means a
material adverse effect on (a) the business, operations, affairs,
financial condition, assets or properties of the Company and its Subsidiaries
taken as a whole, (b) the ability of the Company to perform any of its
material obligations under any Note Document, (c) the ability of any
Subsidiary Guarantor to perform any of its material obligations under any Note
Document, or (d) the validity or enforceability of any Note Document.

 

“Material Subsidiary” means, at
any time, any Subsidiary of the Company which, together with all other
Subsidiaries of such Subsidiary, accounts for more than (i) 5% of the
consolidated assets of the Company and its Subsidiaries or (ii) 5% of
consolidated revenue of the Company and its Subsidiaries.

 

“Memorandum” is defined in Section 5.3.

 

B-8

 

“Moody’s” shall mean Moody
Investors Service, Inc.

 

“Multiemployer Plan” means any
Plan that is a “multiemployer plan” (as such term is defined in Section 4001(a)(3) of
ERISA).

 

“Note Documents” means a collective
reference to this Agreement, the Notes, the Subsidiary Guaranty, and the
Collateral Documents, and other document, instrument or agreement from time to
time executed and delivered by the Company and the Subsidiary Guarantors in
connection therewith, as such agreements may be amended or modified from time
to time in accordance with the terms thereof.

 

“Notes” is defined in Section 1.

 

“Officer’s Certificate” means a
certificate of a Senior Financial Officer or of any other officer of the
Company whose responsibilities extend to the subject matter of such
certificate.

 

“PBGC” means the Pension Benefit
Guaranty Corporation referred to and defined in ERISA or any successor thereto.

 

“Person” means an individual,
partnership, corporation, limited liability company, association, trust,
unincorporated organization, or a government or agency or political subdivision
thereof.

 

“Plan” means an “employee benefit
plan” (as defined in Section 3(3) of ERISA) that is or, within the
preceding five years, has been established or maintained, or to which
contributions are or, within the preceding five years, have been made or
required to be made, by the Company or any ERISA Affiliate or with respect to
which the Company or any ERISA Affiliate may have any liability.

 

“Pledge Agreement” is defined in Section 2.2
of this Agreement.

 

“Priority Indebtedness” means
(without duplication), as of the date of any determination thereof, the sum of (i) all
unsecured Indebtedness of Subsidiaries (including all Guaranties of Indebtedness
of the Company but excluding (x) Indebtedness owing to the Company or any
other Subsidiary, (y) Indebtedness outstanding at the time such Person
became a Subsidiary, provided that
such Indebtedness shall have not been incurred in contemplation of such person
becoming a Subsidiary, and (z) all Subsidiary Guaranties and all
Guaranties of Indebtedness of the Company by any Subsidiary which has also
guaranteed the Notes) and (ii) all Indebtedness of the Company and its
Subsidiaries secured by Liens other than Indebtedness secured by Liens
permitted by subparagraphs (a) through (o), inclusive, of Section 10.5.
 Notwithstanding the foregoing, all Indebtedness of foreign
Subsidiaries in which the holders of such Indebtedness are not required to
share any collateral securing such Indebtedness in accordance with the terms of
the Intercreditor Agreement shall constitute Priority Indebtedness for purposes
of this Agreement.

 

“property” or “properties” means, unless otherwise specifically limited,
real or personal property of any kind, tangible or intangible, choate or
inchoate.

 

B-9

 

“Purchasers” means the purchasers
of the Notes named in Schedule A hereto.

 

“QPAM Exemption” means Prohibited
Transaction Class Exemption 84-14 issued by the United States Department
of Labor.

 

“Qualified Institutional Buyer” means
any Person who is a qualified institutional buyer within the meaning of such
term as set forth in Rule 144(a)(1) under the Securities Act.

 

“Ratable Portion” means, with
respect to any Note, an amount equal to the product of (x) the amount
equal to the net proceeds being so applied to the prepayment of Senior Secured
Indebtedness in accordance with Section 10.6(2), multiplied by (y) a
fraction the numerator of which is the outstanding principal amount of such
Note and the denominator of which is the aggregate principal amount of Senior
Secured Indebtedness of the Company and its Subsidiaries being prepaid pursuant
to Section 10.6(2).

 

“Rated Securities” means the Notes,
if at any time and for so long as they shall have a rating from a Rating Agency
(whether provided at the invitation of the Company or of its own volition), and
any unsecured and unsubordinated Indebtedness of the Company which (i) does
not have the benefit of a guaranty from any Person other than the Company and
its Subsidiaries, as applicable, (ii) has a remaining maturity of the
lesser of at least five years or the remaining period of maturity of all Notes
then outstanding and (iii) is rated by a Rating Agency (whether provided
at the invitation of the Company or of its own volition).

 

“Rating Agency” means S&P,
Moody’s, Fitch, DBRS or any of their respective rating agency subsidiaries and
their successors.

 

“RBC Change” is defined in Section 1.2(b).

 

“RBC Change Notice” is defined in
Section 1.2(b).

 

“RBC Change Premium” is defined
in Section 1.2(b).

 

“RBC Payment” means the payment
of the RBC Change Premium to the holders of the Notes.

 

“Repurchase Price” means either (a) in
the case of a Change of Control caused by either clause (a) and/or (b) of
the definition of Change of Control, 100% of the principal amount of the Notes
being prepaid pursuant to Section 8.7 at par (and without any Make-Whole
Amount, premium, or penalty whatsoever or howsoever described), together with
interest accrued and unpaid thereon to the Prepayment Date, or (b) in the
case of a Change of Control in which solely the event described in clause (c) of
the definition of Change of Control (and not as a result of or in connection
with the occurrence of either clause (a) and/or (b) of the
definition of Change of Control) occurred, 100% of the principal amount of the
Notes being prepaid pursuant to Section 8.7, together with interest
accrued and unpaid thereon to the Prepayment Date, plus the Make-Whole Amount
determined for the Prepayment Date with respect to such principal amount.

 

B-10

 

“Required Holders” means, at any
time, the holders of more than 50% in principal amount of the Notes at the time
outstanding (exclusive of Notes then owned by the Company or any of its
Affiliates and any Notes held by parties who are contractually required to
abstain from voting with respect to matters affecting the holders of the
Notes).

 

“Responsible Officer” means any
Senior Financial Officer and any other officer of the Company with
responsibility for the administration of the relevant portion of this
Agreement.

 

“Risk Based Capital Factor” is
defined in Section 1.2(b).

 

“S&P” means Standard &
Poor’s Ratings Group, a division of The McGraw-Hill Companies, Inc.

 

“SEC” means the Securities and
Exchange Commission.

 

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

 

“Securitization Transaction”
means any financing transaction or series of financing transactions (including
factoring arrangements) pursuant to which the Company or any Subsidiary may
sell, convey or otherwise transfer, or grant a security interest in, accounts,
payments, receivables, rights to future lease payments or residuals or similar
rights to payment to a special purpose Subsidiary or Affiliate of the Company
(not including any intercompany financings in the ordinary course of business
among Subsidiaries of the Company that do not involve a financing transaction
with a third party).

 

“Security Agreement” is defined
in Section 2.2 of this Agreement.

 

“Senior Financial Officer” means
the chief financial officer, principal accounting officer, controller,
treasurer or comptroller of the Company.

 

“Senior Secured Indebtedness”
means any Indebtedness of the Company or any Subsidiary that is secured by any
part of the Collateral pursuant to the Collateral Documents (including but not
limited to, Indebtedness under the Bank Credit Agreement).

 

“Subordinated Indebtedness” means
any Indebtedness of the Company which by its terms is expressly subordinated in
right of payment to the prior payment of the obligations under the Notes, this
Agreement and the other Note Documents containing terms and conditions
(including without limitation the subordination provisions) reasonably
satisfactory to the Required Holders.

 

“Subsidiary” means, as to any
Person, any corporation, association or other business entity in which such
Person or one or more of its Subsidiaries or such Person and one or more of its
Subsidiaries owns sufficient equity or voting interests to enable it or them
(as a group) ordinarily, in the absence of contingencies, to elect a majority
of the directors (or Persons performing similar functions) of such entity, and
any partnership or joint venture if more than a 50% interest in the profits or
capital thereof is owned by such Person or one or more of its 

 

B-11

 

Subsidiaries or such Person and one or more of its
Subsidiaries (unless such partnership or joint venture can and does ordinarily
take major business actions without the prior approval of such Person or one or
more of its Subsidiaries).  Unless the
context otherwise clearly requires, any reference to a “Subsidiary” is a
reference to a Subsidiary of the Company.

 

“Subsidiary Guarantor” means each
Subsidiary that is party to the Subsidiary Guaranty.

 

“Subsidiary Guaranty” is defined
in Section 2.2 of this Agreement.

 

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

 

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

 

“Synthetic Lease” means any
synthetic lease, tax retention operating lease, off-balance sheet loan or
similar off-balance sheet financing arrangement whereby the arrangement is
considered borrowed money indebtedness for tax purposes but is classified as an
operating lease or does not otherwise appear on a balance sheet under GAAP.

 

“UCC” means the uniform
commercial code of any applicable jurisdiction.

 

“USA Patriot Act” means United
States Public Law 107-56, Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT
ACT) Act of 2001, as amended from time to time, and the rules and regulations
promulgated thereunder from time to time in effect.

 

B-12

 

CHANGES IN CORPORATE STRUCTURE

 

None

 

SCHEDULE 4.9 

(to Note Purchase
Agreement)

 

 

GFI
GROUP INC.

 

7.17%  SENIOR NOTE DUE JANUARY 30, 2013

 

	
  No.  [         ]

  	
   

  	
  [Date]

  
	
  $[               ]

  	
   

  	
  PPN 361652 A*1

  

 

FOR VALUE RECEIVED, the undersigned, GFI GROUP INC. (herein called the “Company”), a corporation organized and existing under the
laws of the State of Delaware, hereby promises to pay to
[                                          ]
or registered assigns, the principal sum of
[                            ]
DOLLARS (or so much thereof as shall not have been prepaid) on January 30,
2013 with interest (computed on the basis of a 360-day year of twelve 30-day
months) (a) on the unpaid balance hereof at the rate of 7.17% (subject to
adjustment per Section 1.2(b) of the Note Purchase Agreement referred
to below) per annum from the date hereof, payable semi-annually, on the 30th
day of January and July in each year, commencing on July 30
2008, until the principal hereof shall have become due and payable, and (b) to
the extent permitted by law, at a rate per annum from time to time equal to 2%
above the stated rate, on any overdue payment of interest and, during the
continuance of an Event of Default, on the unpaid balance hereof and on any
overdue payment of any Make-Whole Amount, payable semiannually as aforesaid
(or, at the option of the registered holder hereof, on demand).

 

Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the principal office of Bank of America, N.A. in New York, New York
or at such other place as the Company shall have designated by written notice
to the holder of this Note as provided in the Note Purchase Agreement referred
to below.

 

This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to the Note Purchase Agreement,
dated as of January 30, 2008 (as from time to time amended, supplemented
or modified, the “Note Purchase Agreement”),
between the Company and the respective Purchasers named therein and is entitled
to the benefits thereof.  Each holder of
this Note will be deemed, by its acceptance hereof, to have (i) agreed to
the confidentiality provisions set forth in Section 20 of the Note
Purchase Agreement and (ii) made the representations set forth in
Sections 6.2 and 6.3 of the Note Purchase Agreement.  Unless otherwise indicated, capitalized terms
used in this Note shall have the respective meanings ascribed to such terms in
the Note Purchase Agreement.

 

The Purchasers have executed and delivered the
Intercreditor Agreement that sets forth the relative rights of the holders of
the Senior Secured Indebtedness as provided therein, and each subsequent holder
of this Note shall be bound by the terms and provisions of the Intercreditor
Agreement.

 

This Note is a registered Note and, as provided in the Note Purchase
Agreement, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder’s attorney

 

EXHIBIT 1

(to Note Purchase Agreement)

 

 

duly authorized in writing, a new Note for a like
principal amount will be issued to, and registered in the name of, the
transferee.  Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

 

This Note is subject to optional prepayment, in whole or from time to
time in part, at the times and on the terms specified in the Note Purchase
Agreement, but not otherwise.

 

Pursuant to the Subsidiary Guaranty Agreement dated as of January 30,
2008 (as amended, restated or otherwise modified from time to time, the “Subsidiary Guaranty”), certain Subsidiaries of the Company
have absolutely and unconditionally guaranteed payment in full of the principal
of, Make-Whole Amount, if any, and interest on this Note and the performance by
the Company of its obligations contained in the Note Purchase Agreement all as
more fully set forth in said Subsidiary Guaranty.

 

This Note is secured by, and entitled to the benefits of, the
Collateral Documents.  Reference is made
to the Collateral Documents for the terms and conditions governing the Collateral
for the obligations of the Company hereunder and under the Note Purchase
Agreement and the obligations of the Subsidiary Guarantors under the Subsidiary
Guaranty.

 

If an Event of Default occurs and is continuing, the principal of this
Note may be declared or otherwise become due and payable in the manner, at the
price (including any applicable Make-Whole Amount) and with the effect provided
in the Note Purchase Agreement.

 

This Note shall be construed and enforced in accordance with, and the
rights of the Company and holder hereof shall be governed by, the law of the
State of New York excluding choice-of-law principles of the law of such State
that would permit or require the application of the laws of a jurisdiction
other than such State.

 

	
   

  	
  GFI GROUP INC.

  

 

 

	
   

  	
  By 

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

E-1-2

 

FORM OF SUBSIDIARY GUARANTY

 

EXHIBIT 2.2(a)

(to Note Purchase
Agreement)

 

 

FORM OF OPINION OF
GENERAL COUNSEL

TO THE COMPANY

 

[To be provided]

 

EXHIBIT 4.4(a)

(to Note Purchase Agreement)

 

 

FORM OF OPINION OF
SPECIAL COUNSEL

TO THE COMPANY

 

[To be provided]

 

EXHIBIT 4.4(b)

(to Note Purchase Agreement)

 

 

FORM OF OPINION OF
SPECIAL COUNSEL

TO THE PURCHASERS

 

The closing opinion of Chapman and Cutler, LLP, special counsel to the
Purchasers, called for by Section 4.4 of the Note Purchase Agreement,
shall be dated the date of Closing and addressed to each Purchaser, shall be
satisfactory in form and substance to each Purchaser and shall be to the effect
that:

 

1. The Company is
a corporation, validly existing and in good standing under the laws of its
jurisdiction of incorporation and has the corporate power and the corporate
authority to execute and deliver the Note Purchase Agreement and to issue the
Notes.

 

2. The Note
Purchase Agreement has been duly authorized by all necessary corporate action
on the part of the Company, has been duly executed and delivered by the Company
and constitutes the legal, valid and binding contract of the Company
enforceable in accordance with its terms, subject to bankruptcy, insolvency,
fraudulent conveyance and similar laws affecting creditors’ rights generally,
and general principles of equity (regardless of whether the application of such
principles is considered in a proceeding in equity or at law).

 

3. The Notes have
been duly authorized by all necessary corporate action on the part of the
Company, and the Notes being delivered on the date hereof have been duly
executed and delivered by the Company and constitute the legal, valid and
binding obligations of the Company enforceable in accordance with their terms,
subject to bankruptcy, insolvency, fraudulent conveyance and similar laws
affecting creditors’ rights generally, and general principles of equity
(regardless of whether the application of such principles is considered in a
proceeding in equity or at law).

 

4. The issuance,
sale and delivery of the Notes and the execution and delivery of the Subsidiary
Guaranty under the circumstances contemplated by the Note Purchase Agreement
and the Subsidiary Guaranty do not, under existing law, require the
registration of the Notes or the Subsidiary Guaranty under the Securities Act
of 1933, as amended, or the qualification of an indenture under the Trust
Indenture Act of 1939, as amended.

 

EXHIBIT 4.4(c)

(to Note Purchase
Agreement)

 

 

With respect to matters of fact upon which such
opinion is based, Chapman and Cutler, LLP, may rely on appropriate certificates
of public officials and officers of the Company and upon representations of the
Company and the Purchasers delivered in connection with the issuance and sale
of the Notes.

 

In rendering the opinion set forth in paragraph 1
above, Chapman and Cutler, LLP, may rely, as to matters referred to in
paragraph 1, solely upon an examination of the Articles of Incorporation
certified by, and a certificate of good standing of the Company from, the
Secretary of State of the State of Delaware, the Bylaws of the Company and the
general business corporation law of the State of Delaware.  The opinion of Chapman and Cutler, LLP, is
limited to the laws of the State of New York, the general business corporation
law of the State of Delaware and the Federal laws of the United States.

 

E-4.4(c)-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]