Document:

Exhibit 4.2

 

SUPERMEDIA INC.
 
AND
 
MELLON INVESTOR SERVICES LLC, as Rights Agent
 
RIGHTS AGREEMENT
 
dated as of
 
March 3, 2010
 

 
TABLE OF CONTENTS
 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 1

  	
  Certain
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section 2

  	
  Appointment
  of Rights Agent

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section 3

  	
  Issue
  of Right Certificates

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section 4

  	
  Form of
  Right Certificates

  	
  13

  
	
   

  	
   

  	
   

  
	
  Section 5

  	
  Countersignature
  and Registration

  	
  13

  
	
   

  	
   

  	
   

  
	
  Section 6

  	
  Transfer,
  Split Up, Combination and Exchange of Right Certificates; Mutilated,
  Destroyed, Lost or Stolen Right Certificates

  	
  14

  
	
   

  	
   

  	
   

  
	
  Section 7

  	
  Exercise
  of Rights: Purchase Price; Expiration Date of Rights

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section 8

  	
  Cancellation
  and Destruction of Right Certificates

  	
  16

  
	
   

  	
   

  	
   

  
	
  Section 9

  	
  Reservation
  and Availability of Shares of Preferred Stock

  	
  16

  
	
   

  	
   

  	
   

  
	
  Section 10

  	
  Preferred
  Stock Record Date

  	
  18

  
	
   

  	
   

  	
   

  
	
  Section 11

  	
  Adjustment
  of Purchase Price, Number of Shares or Number of Rights

  	
  18

  
	
   

  	
   

  	
   

  
	
  Section 12

  	
  Certificate
  of Adjusted Purchase Price or Number of Shares

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 13

  	
  Consolidation,
  Merger or Sale or Transfer of Assets or Earning Power

  	
  26

  
	
   

  	
   

  	
   

  
	
  Section 14

  	
  Fractional
  Rights and Fractional Shares

  	
  28

  
	
   

  	
   

  	
   

  
	
  Section 15

  	
  Rights
  of Action

  	
  30

  
	
   

  	
   

  	
   

  
	
  Section 16

  	
  Agreement
  of Right Holders

  	
  30

  
	
   

  	
   

  	
   

  
	
  Section 17

  	
  Right
  Certificate Holder Not Deemed a Stockholder

  	
  31

  
	
   

  	
   

  	
   

  
	
  Section 18

  	
  Concerning
  the Rights Agent

  	
  31

  
	
   

  	
   

  	
   

  
	
  Section 19

  	
  Merger
  or Consolidation or Change of Name of Rights Agent

  	
  32

  
	
   

  	
   

  	
   

  
	
  Section 20

  	
  Duties
  of Rights Agent

  	
  32

  
	
   

  	
   

  	
   

  
	
  Section 21

  	
  Change
  of Rights Agent

  	
  35

  
	
   

  	
   

  	
   

  
	
  Section 22

  	
  Issuance
  of New Right Certificates

  	
  36

  
	
   

  	
   

  	
   

  
	Section 23
	Redemption
	36

 

 

	
  Section 24

  	
  Exchange

  	
  38

  
	
   

  	
   

  	
   

  
	
  Section 25

  	
  Notice
  of Certain Events

  	
  39

  
	
   

  	
   

  	
   

  
	
  Section 26

  	
  Notices

  	
  39

  
	
   

  	
   

  	
   

  
	
  Section 27

  	
  Supplements
  and Amendments

  	
  40

  
	
   

  	
   

  	
   

  
	
  Section 28

  	
  Successors

  	
  41

  
	
   

  	
   

  	
   

  
	
  Section 29

  	
  Benefits
  of this Agreement

  	
  41

  
	
   

  	
   

  	
   

  
	
  Section 30

  	
  Determinations
  and Actions by the Board

  	
  41

  
	
   

  	
   

  	
   

  
	
  Section 31

  	
  Severability

  	
  41

  
	
   

  	
   

  	
   

  
	
  Section 32

  	
  Governing
  Law

  	
  42

  
	
   

  	
   

  	
   

  
	
  Section 33

  	
  Descriptive
  Headings; References; Calculation of Time Periods

  	
  42

  
	
   

  	
   

  	
   

  
	
  Section 34

  	
  Counterparts

  	
  42

  
	
   

  	
   

  	
   

  
	Section 35
	Force Majeure
	42

 
Exhibit A
Form of Certificate of Designations of Series A Junior Participating Preferred Stock of SuperMedia Inc.
 
Exhibit B
Form of Right Certificate
Form of Assignment
Form of Election to Purchase
 
Exhibit C
Summary of Rights to Purchase Preferred Stock

 

 

RIGHTS AGREEMENT

 

This
Rights Agreement, dated as of March 3, 2010 (this “Agreement”), is
between SUPERMEDIA INC., formerly known as Idearc Inc., a Delaware
corporation (the “Company”), and MELLON INVESTOR SERVICES LLC (operating
with the service name BNY Mellon Shareowner Services), a New Jersey limited
liability company, as Rights Agent (the “Rights Agent”).

 

W I T N E S S E T H:

 

WHEREAS, the Board of Directors of the Company
(the “Board”) has authorized and declared a dividend distribution of one
preferred share purchase right (a “Right”) for each outstanding share of
Common Stock (as defined below) outstanding as of
5:00 p.m., New York City time, on March 25, 2010 (the “Record Date”)
and has authorized the issuance of one Right (subject to adjustment) in respect
of each share of Common Stock issued between the Record Date and the earliest
of the Distribution Date, the Redemption Date and the Expiration Date (as such
terms are hereinafter defined) and under certain other circumstances, each
Right representing the right to purchase one one-thousandth of one share of
Series A Junior Participating Preferred Stock of the Company having the
rights and preferences set forth in the form of Certificate of Designations of
Series A Junior Participating Preferred Stock of SuperMedia Inc., attached
hereto as Exhibit A, upon the terms and subject to the conditions
hereinafter set forth;

 

NOW,
THEREFORE, in
consideration of the premises and the mutual agreements herein set forth, the
parties hereby agree as follows:

 

Section 1.                                            Certain Definitions. 
For purposes of this Agreement, the following terms have the meanings
indicated:

 

(a)                                  “Acquiring Person” shall mean any
Person (other than a Company Entity or a Grandfathered Person) who or that
shall be or become the Beneficial Owner of 20% or more of the shares of Common
Stock then outstanding.  Notwithstanding
the foregoing:

 

(i)                                     no Person shall become an “Acquiring
Person” as the result of an acquisition of Common Stock by a Company Entity
that, by reducing the number of shares outstanding, increases the proportionate
number of shares Beneficially Owned by a Person to 20% or more of the shares of
Common Stock then outstanding; provided, however, that if such
Person becomes the Beneficial Owner of 20% or more of the shares of Common
Stock then outstanding by reason of share acquisitions by Company Entities and
shall, after such share acquisitions by Company Entities, become the Beneficial
Owner of any additional shares of Common Stock (other than by reason of a stock
dividend, stock split or other corporate action effected by the Company), then
such Person shall be deemed to be an “Acquiring Person,” except as
otherwise provided in Section 1(a)(ii), unless upon consummation of
the acquisition of such additional shares of Common Stock such Person does not
beneficially own 20% or more of the shares of Common Stock then outstanding;

 

(ii)                                  if (A) the Board determines in good
faith that a Person who or that has satisfied the conditions for becoming an “Acquiring
Person” pursuant to the foregoing provisions 

 

 

of this Section 1(a) did so
inadvertently (including, without limitation, because (1) such Person was
unaware that such Person had become the Beneficial Owner of 20% or more of the
shares of Common Stock then outstanding or (2) such Person was aware of
the extent of its Beneficial Ownership of Common Stock but had no actual
knowledge of the consequences of such Beneficial Ownership under this
Agreement) and without any intention of changing or influencing control of the
Company, (B) such Person (and/or its Affiliates and Associates) divests a
sufficient number of shares of Common Stock (including, in the case solely of
Derivative Common Shares (as such term is hereinafter defined), by terminating
one or more subject derivative transactions or disposing of a sufficient number
of subject derivative securities) so that such Person would no longer satisfy
the conditions for being an “Acquiring Person” pursuant to the foregoing
provisions of this Section 1(a), and (C) such determination by
the Board is made and such divestment by such Person (and/or its Affiliates and
Associates) is completed prior to the time when the first Right is distributed
by the Rights Agent pursuant to Section 3(a), then such Person
shall not be an “Acquiring Person” and shall be deemed to have never
been an “Acquiring Person” for all purposes of this Agreement (such
that, for the avoidance of doubt, no Distribution Date shall occur, or be
deemed to have occurred, as a result thereof and no adjustment pursuant to Section 11(a)(ii) or
Section 13 shall be made in respect thereof); provided, however,
that if such Person, after such determination and divestment, becomes the
Beneficial Owner of 20% or more of the shares of Common Stock then outstanding
by reason of becoming the Beneficial Owner of any additional shares of Common
Stock, then such Person shall be deemed to be an “Acquiring Person”
unless a subsequent determination and divestment is made pursuant to this Section 1(a)(ii);
and

 

(iii)                               if a Person would be deemed to be an Acquiring Person
upon the adoption of this Agreement because such Person is the Beneficial Owner
of 20% or more of the shares of Common Stock then outstanding on the date of
this Agreement, such Person will not be deemed an Acquiring Person for any
purposes of this Agreement unless and until such Person acquires Beneficial
Ownership of one or more additional shares of Common Stock after the date of
this Agreement (other than pursuant to a dividend or distribution paid in
shares of Common Stock or pursuant to a split or subdivision of the outstanding
Common Stock), unless upon becoming the Beneficial Owner of such additional
shares of Common Stock, such Person is not then the Beneficial Owner of 20% or
more of the shares of Common Stock then outstanding.

 

(b)                                 “Affiliate” shall have the meaning
ascribed to such term in Rule 12b-2 of the General Rules and
Regulations under the Exchange Act, as in effect on the date of this Agreement.

 

(c)                                  “Agreement” shall have the meaning
set forth in the preamble hereto.

 

(d)                                 “Associate,” when used to indicate
a relationship with any Person, shall mean each, any and all of the following:

 

(i)                                     any firm, corporation, limited liability
company, partnership, joint venture, bank, trust or other entity of which such
Person is an officer or partner;

 

(ii)                                  any firm, corporation, limited liability
company, partnership, joint venture, bank, trust or other entity of which such
Person is, directly or indirectly, the Beneficial Owner of 

 

2

 

10% or more of any class of equity securities; provided,
however, that any such firm, corporation, limited liability company,
partnership, joint venture, bank, trust or other entity shall not be an “Associate”
of a Person if, and only for so long as, such Person (A) satisfies the
criteria set forth in both Rule 13d-1(b)(1)(i) and
Rule 13d-1(b)(1)(ii) of the General Rules and Regulations under
the Exchange Act, (B) has reported Beneficial Ownership of the equity
securities of such firm, corporation, limited liability company, partnership,
joint venture, bank, trust or other entity on Schedule 13G under the Exchange
Act and is not required to report its ownership of such equity securities on
Schedule 13D under the Exchange Act, (C) is the Beneficial Owner of less
than 20% of the shares of Common Stock then outstanding (including any such
shares that are beneficially owned by such Person’s Affiliates and Associates
after giving effect to this proviso) and (D) has not reported and is not
required to report its ownership of Common Stock on Schedule 13D under the
Exchange Act;

 

(iii)                               any trust or other estate in which such Person has a
substantial beneficial interest or as to which such Person serves as trustee or
in a similar fiduciary capacity; and

 

(iv)                              any relative or spouse of such Person, or
any relative of such spouse, who has the same home as such Person.

 

(e)                                  A Person shall be deemed the “Beneficial
Owner” of and shall be deemed to “beneficially own” any securities:

 

(i)                                     that such Person, or any of such Person’s
Affiliates or Associates, beneficially owns, directly or indirectly, within the
meaning of Rule 13d-3 of the General Rules and Regulations under the
Exchange Act as in effect on the date of this Agreement;

 

(ii)                                  that such Person, or any of such Person’s
Affiliates or Associates, has (A) the right to acquire (whether such right
is exercisable immediately or only after the passage of time or the
satisfaction of other conditions) pursuant to any agreement, arrangement or
understanding (other than customary agreements with and between underwriters
and selling group members with respect to a bona fide public offering of
securities), written or otherwise, or upon the exercise of conversion rights,
exchange rights, warrants, options or other rights (other than the Rights); provided,
however, that a Person shall not be deemed the “Beneficial Owner”
of, or to “beneficially own,” (1) securities tendered pursuant to a
tender or exchange offer made by such Person or any of such Person’s Affiliates
or Associates until such tendered securities are accepted for purchase or
exchange or (2) securities that such Person has a right to acquire on the
exercise of Rights at any time prior to the time that such Person becomes an
Acquiring Person; or (B) the right to vote pursuant to any agreement,
arrangement or understanding, written or otherwise; provided, however,
that a Person shall not be deemed the “Beneficial Owner” of, or to
“beneficially own,” any security under this clause (B) if the
agreement, arrangement or understanding to vote such security (x) arises
solely from a revocable proxy or consent given to such Person in response to a
public proxy or consent solicitation made pursuant to, and in accordance with,
the applicable rules and regulations of the Exchange Act and (y) is
not then reportable on Schedule 13D under the Exchange Act (or any comparable
or successor report);

 

(iii)                               that are beneficially owned, directly or
indirectly, by any other Person (or any of such other Person’s Affiliates or
Associates) with which such Person (or any of such 

 

3

 

Person’s Affiliates or Associates) has (A) any
agreement, arrangement or understanding (whether or not in writing) for the
purpose of acquiring, holding, voting (except pursuant to a revocable proxy as
described in the proviso to Section 1(e)(ii)(B)) or disposing
of any securities of the Company or (B) any agreement, arrangement or
understanding (whether or not in writing) to cooperate in obtaining, changing
or influencing the control of the Company; provided, however,
that (1) nothing in this Section 1(e) shall cause a
Person engaged in business as an underwriter of securities to be the “Beneficial Owner”
of, or to “beneficially own,” any securities acquired through such
Person’s participation in good faith in a firm commitment underwriting until
the expiration of forty (40) days after the date of such acquisition, and then
only if such securities continue to be owned by such Person at the expiration
of such forty (40) day period, (2) no Person who is an officer, director
or employee of a Company Entity shall be deemed, solely by reason of such
Person’s status or authority as such, to be the “Beneficial Owner”
of, or to “beneficially own,” any securities (including, without
limitation, in a fiduciary capacity) beneficially owned by such Company Entity
or by any other officer, director or employee of such Company Entity and
(3) a Person shall not be deemed the “Beneficial Owner” of, or
to “beneficially own,” any securities held by such Person in trust
accounts, managed accounts and the like, or otherwise held in a fiduciary
capacity, that are beneficially owned by third Persons who are not Affiliates
or Associates of such Person; or

 

(iv)                              that are the
subject of a derivative transaction entered into by such Person (or any of such
Person’s Affiliates or Associates), or a derivative security acquired by such
Person (or any of such Person’s Affiliates or Associates), that gives such
Person (or any of such Person’s Affiliates or Associates) the economic
equivalent of ownership of an amount of such securities due to the fact that
the value of the derivative is explicitly determined by reference to the price
or value of such securities, or that provides such Person (or any of such
Person’s Affiliates or Associates) an opportunity, directly or indirectly, to
profit, or to share in any profit, derived from any change in the value of such
securities, in any case without regard to whether (a) such derivative
conveys any voting rights in such securities to such Person (or any of such
Person’s Affiliates or Associates), (b) the derivative is required to be,
or capable of being, settled through delivery of such securities or
(c) such Person (or any of such Person’s Affiliates or Associates) may
have entered into other transactions that hedge the economic effect of such
derivative.  In determining the number of
shares of Common Stock beneficially owned by virtue of the operation of this Section 1(e)(iv),
the subject Person shall be deemed to beneficially own (without duplication)
the notional or other number of shares of Common Stock specified in the
documentation evidencing the derivative position as being subject to be
acquired upon the exercise or settlement of the applicable right or as the
basis upon which the value or settlement amount of such right, or the
opportunity of the holder of such right to profit or share in any profit, is to
be calculated in whole or in part, and in any case (or if no such number of
shares of Common Stock is specified in such documentation or otherwise), as
determined by the Board in good faith to be the number of shares of Common
Stock to which the derivative position relates. 
Such shares of Common Stock that are deemed so beneficially owned
pursuant to the operation of this Section 1(e)(iv) shall be
referred to herein as “Derivative Common Shares.”

 

Notwithstanding anything in
this Section 1(e) to the contrary, the phrase “then
outstanding,” when used with reference to a Person’s Beneficial Ownership
of securities of the Company, shall mean the number of such securities then
issued and outstanding together with 

 

4

 

the number of such securities not then actually
issued and outstanding that such Person would be deemed to own beneficially
hereunder.

 

(f)                                    “Business Day” shall mean any day
other than a Saturday, Sunday, or a day on which banking institutions in the
States of New Jersey, New York or Texas are authorized or obligated by law or
executive order to close.

 

(g)                                 “close of business” on any given
date shall mean 5:00 p.m., New York City time, on such date; provided,
however, that if such date is not a Business Day it shall mean
5:00 p.m., New York City time, on the next succeeding Business Day.

 

(h)                                 “Common Stock” shall mean the
common stock, $0.01 par value (or as such par value may be changed from
time to time), of the Company.

 

(i)                                     “Common Stock Equivalents” shall
have the meaning set forth in Section 11(a)(iii).

 

(j)                                     “Company” shall have the meaning
set forth in the preamble hereto.

 

(k)                                  “Company Entity” shall mean
(i) the Company, (ii) any subsidiary of the Company or (iii) any
employee benefit plan of the Company or of any subsidiary of the Company, or
any entity organized, appointed or established pursuant to the terms of any
such plan.

 

(l)                                     “current market price per share”
shall have the meaning set forth in Section 11(d).

 

(m)                               “Current Value” shall have the
meaning set forth in Section 11(a)(iii).

 

(n)                                 “Definitive Acquisition Agreement”
shall mean any agreement entered into by the Company that is conditioned on the
approval by the holders of not less than a majority of the outstanding shares
of Common Shock at a meeting of stockholders with respect to (i) a merger,
consolidation, recapitalization, reorganization, share exchange, business
combination or similar transaction involving the Company or (ii) the
acquisition in any manner, directly or indirectly, of more than 50% of the
consolidated total assets (including, without limitation, equity securities of
its subsidiaries) of the Company.

 

(o)                                 “Distribution Date” shall have the
meaning set forth in Section 3(a).

 

(p)                                 “equivalent preferred stock” shall
have the meaning set forth in Section 11(b).

 

(q)                                 “Exchange Act” shall mean the
Securities Exchange Act of 1934, as amended.

 

(r)                                    “Exchange Ratio” shall have the
meaning set forth in Section 24(a).

 

(s)                                  “Expiration Date” shall mean the
close of business on the earlier of (i) March 25, 2013 and
(ii) March 25, 2011 if and only if Stockholder Approval has not been
obtained on or prior to such date.

 

5

 

(t)                                    “Grandfathered Person” shall mean
(i) Paulson & Co., Inc. (including any successor thereto, by
operation of law or otherwise, but excluding any assignee, distributee or
transferee thereof, in each case by operation of law or otherwise) (the “Institutional
Investor”), (ii) any controlled Affiliates of the Institutional
Investor (including any successor to any such Affiliate or any assignee,
distributee or transferee of any such Affiliate, in each case by operation of
law or otherwise, for so long as such successor, assignee, distributee or
transferee remains a controlled Affiliate of the Institutional Investor, but
excluding any other successor to any such Affiliate or other assignee,
distributee or transferee of any such Affiliate, in each case by operation of
law or otherwise) (collectively, the “Paulson Controlled Affiliates”)
and (iii) the several investment funds and accounts managed by the
Institutional Investor and/or any Paulson Controlled Affiliates (such funds and
accounts, together with the Institutional Investor and any Paulson Controlled
Affiliates, collectively, “Paulson”) for so long as Paulson is not the
Beneficial Owner of more than the Permitted Percentage (as defined below) of
the shares of Common Stock then outstanding; provided, however,
that Paulson shall not become an “Acquiring Person” as the result of an
acquisition of Common Stock by a Company Entity that, by reducing the number of
shares outstanding, increases the proportionate number of shares Beneficially
Owned by Paulson to more than the Permitted Percentage of the shares of Common
Stock then outstanding; provided, further, that if Paulson
becomes the Beneficial Owner of more than the Permitted Percentage of the
shares of Common Stock then outstanding by reason of share acquisitions by
Company Entities and shall, after such share acquisitions by Company Entities
have been publicly disclosed or have been disclosed to (or otherwise actually
known by) Paulson, become the Beneficial Owner of any additional shares of
Common Stock (other than by reason of a stock dividend, stock split or other
corporate action effected by the Company), then Paulson shall be deemed to be
an “Acquiring Person,” except as otherwise provided in Section 1(a)(ii) (substituting
“more than the Permitted Percentage” for “20% or more” in each case in that
subsection), unless upon consummation of the acquisition of such additional
shares of Common Stock Paulson does not beneficially own more than the
Permitted Percentage of the shares of Common Stock then outstanding.

 

For purposes of this Section 1(t), the “Permitted
Percentage” shall mean the lower of (1) forty-five percent (45%) and
(2) the percentage of the outstanding shares of Common Stock that are
Beneficially Owned by Paulson at the close of business on the day that is 270
days immediately following the effective date of the consummation of the
transactions contemplated by that certain Standby Purchase Agreement, dated as
of November 18, 2009, by and between Paulson and the Company.

 

(u)                                 “Independent Directors” shall mean
members of the Board who are not officers, employees or Affiliates (or
designees of Affiliates) of the Company.

 

(v)                                 “invalidation time” shall have the
meaning set forth in Section 11(a)(ii).

 

(w)                               “NASDAQ” shall mean the NASDAQ
National Market System.

 

(x)                                   “Outside Meeting Date” shall have
the meaning set forth in Section 23(b).

 

(y)                                 “Person” shall mean any
individual, firm, corporation, limited liability company, trust or other
entity, and shall include any successor (by merger or otherwise) of such
entity.

 

6

 

(z)                                   “Preferred Stock” shall mean the
Series A Junior Participating Preferred Stock of the Company having the
rights and preferences set forth in the form of Certificate of
Designations of Series A Junior Participating Preferred Stock of
SuperMedia Inc., attached hereto as Exhibit A and, to the extent
that there are not a sufficient number of shares of Series A Junior Participating Preferred Stock of
the Company authorized to permit the full exercise of the
Rights, any other series of preferred stock of the Company designated for such
purpose containing terms substantially similar to the terms of the Series A Junior Participating
Preferred Stock of the Company.

 

(aa)                            “Principal Party” shall have the
meaning set forth in Section 13(b).

 

(bb)                          “Purchase Price” shall have the
meaning set forth in Section 4.

 

(cc)                            “Qualified Offer” shall mean an
offer determined by a majority of the Independent Directors to have each of the
following characteristics:

 

(i)                                     a fully financed, all-cash tender offer,
or an exchange offer offering shares of common stock of the offeror, or a
combination thereof, in each such case for all of the outstanding shares of
Common Stock at the same per-share consideration;

 

(ii)                                  an offer that has commenced within the
meaning of Rule 14d-2(a) under the Exchange Act;

 

(iii)                               an offer whose per-share offer price
exceeds the greatest of (A) the highest reported market price per share of
the Common Stock during the 24 months immediately preceding the commencement of
the offer (within the meaning of Rule 14d-2(a) under the Exchange
Act), (B) the highest price per share of the Common Stock paid by the
Person making the offer (or any of such Person’s Affiliates) during the 24
months immediately preceding the commencement of the offer (within the meaning
of Rule 14d-2(a) under the Exchange Act) or prior to the expiration
of the offer, (C) an amount that is 25% higher than the 12-month moving
average per share price of the Common Stock (determined as of the Trading Day
immediately preceding the date of commencement of the offer (within the meaning
of Rule 14d-2(a) under the Exchange Act)), (D) an amount that is
25% higher than the closing price (as “closing price” is determined pursuant to
Section 11(d)(i)) per share of the Common Stock on the Trading Day
immediately preceding the commencement of the offer (within the meaning of
Rule 14d-2(a) under the Exchange Act) and (E) if, at the time
that the offer is commenced (within the meaning of
Rule 14d-2(a) under the Exchange Act), any other offer that is a
Qualified Offer has been commenced and remains open, the price per share of the
Common Stock offered in such earlier Qualified Offer; provided, however,
that, to the extent that an offer that includes common stock of the offeror,
such per-share offer price of the offer will be determined by valuing such
common stock of the offeror at the lowest reported market price for such common
stock of the offeror during the five (5) trading days immediately
preceding and the five (5) trading days immediately following the
commencement of the offer (within the meaning of Rule 14d-2(a) under
the Exchange Act);

 

(iv)                              an offer that, within twenty (20)
Business Days after the commencement date of the offer (or within ten
(10) Business Days after any increase in the offer consideration), 

 

7

 

does not result in a nationally recognized investment
banking firm retained by the Board rendering an opinion to the Board that the
consideration being offered to the stockholders of the Company is either unfair
or inadequate;

 

(v)                                 if the offer includes shares of common
stock of the offeror, an offer pursuant to which (A) the offeror shall
permit representatives of the Company (including a nationally-recognized
investment banking firm retained by the Board and legal counsel and an
accounting firm designated by the Company) to have access to such offeror’s
books, records, management, accountants, financial advisors, counsel and other
appropriate outside advisors for the purposes of permitting such
representatives to conduct a due diligence review of the offeror in order to
permit the Board to evaluate the offer and make an informed decision and, if
requested by the Board, to permit such investment banking firm (relying as
appropriate on the advice of such legal counsel) to be able to render an
opinion to the Board with respect to whether the consideration being offered to
the stockholders of the Company is fair from a financial point of view and
(B) within ten (10) Business Days after such representatives of the
Company (including a nationally-recognized investment banking firm retained by
the Board and legal counsel and an accounting firm designated by the Company)
shall have notified the Company and the offeror that it had completed such due
diligence review to its satisfaction (or, following completion of such due
diligence review, within ten (10) Business Days after any increase in the
consideration being offered), such investment banking firm does not render an
opinion to the Board that the consideration being offered to the stockholders
of the Company is either unfair or inadequate and such investment banking firm
does not, after the expiration of such ten (10) Business Day period,
render an opinion to the Board that the consideration being offered to the
stockholders of the Company has become either unfair or inadequate based on a
subsequent disclosure or discovery of a development or developments that have
had or are reasonably likely to have a material adverse effect on the value of
the common stock of the offeror;

 

(vi)                              an offer that is subject to only the
minimum tender condition described below in Section 1(cc)(ix) and
other customary terms and conditions, which conditions shall not include any
financing, funding or similar conditions or any requirements with respect to
the offeror or its agents being permitted any due diligence with respect to the
books, records, management, accountants or other outside advisors of the
Company;

 

(vii)                           an offer pursuant to which the Company has received an
irrevocable, legally binding written commitment of the offeror that the offer
will remain open for at least one hundred twenty (120) days and, if a Special
Meeting is duly requested in accordance with Section 23(b), for at
least ten (10) Business Days after the date of the Special Meeting or, if
no Special Meeting is held within ninety (90) days following receipt of the
Special Meeting Notice in accordance with Section 23(b), for at
least ten (10) Business Days following such ninety (90) day period;

 

(viii)                        an offer pursuant to which the Company has received an
irrevocable, legally binding written commitment of the offeror that, in
addition to the minimum time periods specified above in Section 1(cc)(vii),
the offer, if it is otherwise to expire prior thereto, will be extended for at
least twenty (20) Business Days after any increase in the consideration being
offered or after any bona fide alternative offer is commenced within the
meaning of Rule 14d-2(a) under the Exchange Act; provided, however,
that such offer need not remain open, as a 

 

8

 

result of Section 1(cc)(vii) and this
Section 1(cc)(viii), beyond (A) the time that any other offer
satisfying the criteria for a Qualified Offer is then required to be kept open
under such Section 1(cc)(vii) and this Section 1(cc)(viii) or
(B) the expiration date, as such date may be extended by public
announcement (with prompt written notice to the Rights Agent) in compliance
with Rule 14e—1 under the Exchange Act, of any other tender offer for the
Common Stock with respect to which the Board has agreed to redeem the Rights
immediately prior to acceptance for payment of Common Stock thereunder (unless
such other offer is terminated prior to its expiration without any Common Stock
having been purchased thereunder) or (C) one (1) Business Day after
the stockholder vote with respect to approval of any Definitive Acquisition
Agreement has been officially determined and certified by the inspectors of
elections;

 

(ix)                                an offer that is conditioned on a minimum
of at least two-thirds of the outstanding shares of the Common Stock not held
by the Person making such offer (and such Person’s Affiliates and Associates)
being tendered and not withdrawn as of the offer’s expiration date, which
condition shall not be waivable;

 

(x)                                   an offer pursuant to which the Company has
received an irrevocable, legally binding written commitment of the offeror to
consummate, as promptly as practicable upon successful completion of the offer,
a second step transaction whereby all shares of the Common Stock not tendered
into the offer will be acquired at the same consideration per share actually
paid pursuant to the offer, subject to stockholders’ statutory appraisal
rights, if any;

 

(xi)                                an offer pursuant to which the Company
and its stockholders have received an irrevocable, legally binding written
commitment of the offeror that no amendments will be made to the offer to
reduce the consideration being offered or to otherwise change the terms of the
offer in a way that is adverse to a tendering stockholder;

 

(xii)                             an offer (other than an offer consisting solely of
cash consideration) pursuant to which the Company has received the written
representation and certification of the offeror and the written representations
and certifications of the offeror’s Chief Executive Officer and Chief Financial
Officer, acting in such capacities, that (A) all facts about the offeror
that would be material to making an investor’s decision to accept the offer
have been fully and accurately disclosed as of the date of the commencement of
the offer within the meaning of Rule 14d-2(a) under the Exchange Act,
(B) all such new facts will be fully and accurately disclosed on a prompt
basis during the entire period during which the offer remains open, and
(C) all required Exchange Act reports will be filed by the offeror in a
timely manner during such period; and

 

(xiii)                          if the offer includes non-cash consideration,
(A) the non-cash portion of the consideration offered must consist solely
of common stock of a Person that is a publicly-owned United States corporation,
(B) such common stock must be freely tradable and listed or admitted to
trading on either the New York Stock Exchange or NASDAQ, (C) no
stockholder approval of the issuer of such common stock is required to issue
such common stock, or, if such approval is required, such approval has already
been obtained, (D) no Person (including such Person’s Affiliates and
Associates) beneficially owns 20% or more of the voting stock of the issuer of
such common stock at the time of commencement of the offer or at any time
during the term of the offer, (E) no other class of voting stock or other
voting securities of the issuer of such common stock is outstanding and
(F) the issuer of such common stock meets the registrant 

 

9

 

eligibility requirements for use of Form S-3 for
registering securities under the Securities Act, including the filing of all
required Exchange Act reports in a timely manner during the twelve calendar
months prior to the date of commencement of such offer.

 

For the purposes of Section 1(cc)(i), “fully
financed” shall mean that the offeror has sufficient funds for the offer
and related expenses which shall be evidenced by (1) firm, unqualified,
legally binding written commitments from responsible financial institutions
having the necessary financial capacity, accepted by the offeror, to provide
funds for such offer subject only to customary terms and conditions (for the
avoidance of doubt it being understood that a provision relating to the sharing
with a financing source of any break-up or termination fee shall be considered
customary), (2) cash or cash equivalents then available to the offeror,
set apart and maintained solely for the purpose of funding the offer with an
irrevocable, legally binding written commitment being provided by the offeror
to the Board to maintain such availability until the offer is consummated or
withdrawn or (3) a combination of the foregoing; which evidence has been
provided to the Company prior to, or upon, commencement of the offer.  If an offer becomes a Qualified Offer in
accordance with this Section 1(cc), but subsequently ceases to be a
Qualified Offer as a result of the failure at a later date of such offer to
continue to satisfy any of the requirements of this Section 1(cc),
such offer shall cease to be a Qualified Offer and the provisions of Section 23(b) shall
no longer be applicable to such offer, provided that the actual redemption of
the Rights pursuant to Section 23(b) shall not have already
occurred.

 

(dd)                          “Record Date” shall have the
meaning set forth in the recitals hereof.

 

(ee)                            “Redemption Date” shall have the
meaning set forth in Section 7(a).

 

(ff)                                “Redemption Price” shall have the
meaning set forth in Section 23(a).

 

(gg)                          “Redemption Resolution” shall have
the meaning set forth in Section 23(b).

 

(hh)                          “Right” shall have the meaning set
forth in the recitals hereof.

 

(ii)                                  “Right Certificate” shall have the
meaning set forth in Section 3(a).

 

(jj)                                  “Rights Agent” shall have the
meaning set forth in the preamble hereto.

 

(kk)                            “Section 11(a)(ii) Trigger
Date” shall have the meaning set forth in Section 11(a)(iii).

 

(ll)                                  “Securities Act” shall mean the
Securities Act of 1933, as amended.

 

(mm)                      “Security” shall have the meaning
set forth in Section 11(d).

 

(nn)                          “Senior Voting Stock” shall have
the meaning set forth in Section 13(b).

 

(oo)                          “Shares Acquisition Date” shall
mean the first date of public announcement (which for purposes of this
definition shall include, without limitation, a report filed pursuant to Section 13(d) of
the Exchange Act) by the Company or an Acquiring Person that an Acquiring
Person has become an “Acquiring Person” for purposes of this Agreement.

 

10

 

(pp)                          “Special Independent Committee”
means a special committee of the Board comprised of each Independent Director
who is not a director, officer, employee, Affiliate or designee of a
Grandfathered Person.

 

(qq)                          “Special Meeting” shall have the
meaning set forth in Section 23(b).

 

(rr)                                “Special Meeting Notice” shall
have the meaning set forth in Section 23(b).

 

(ss)                            “Special Meeting Period” shall
have the meaning set forth in Section 23(b).

 

(tt)                                “Spread” shall have the meaning
set forth in Section 11(a)(iii).

 

(uu)                          “Stockholder Approval” shall mean
the approval of this Agreement by the affirmative vote of a majority of all the
votes cast at a meeting of stockholders of the Company, duly held in accordance
with the Company’s Amended and Restated Certificate of Incorporation and
Amended and Restated By-laws (as each may be amended from time to time) and
applicable law, at which a quorum is present.

 

(vv)                          “subsidiary” of a Person shall
mean any corporation or other entity of which securities or other ownership
interests having ordinary voting power sufficient to elect a majority of the
board of directors or other persons performing similar functions are
beneficially owned, directly or indirectly, by such Person or any other
subsidiary of such Person.

 

(ww)                      “Substitution Period” shall have
the meaning set forth in Section 11(a)(iii).

 

(xx)                              “Summary of Rights” shall have the
meaning set forth in Section 3(b).

 

(yy)                          “Trading Day” shall have the
meaning set forth in Section 11(d).

 

Section 2.                                            Appointment of Rights Agent. 
The Company hereby appoints the Rights Agent to act as agent for the
Company in accordance with the express terms and conditions hereof (and no
implied terms or conditions), and the Rights Agent hereby accepts such
appointment.  The Company may from time to
time appoint such co-Rights Agents as it may deem necessary or desirable, upon
ten (10) days’ prior written notice to the Rights Agent. The Rights Agent
shall have no duty to supervise, and shall in no event be liable for, the acts
or omissions of any such co-Rights Agents.

 

Section 3.                                            Issue of Right Certificates.

 

(a)                                  Until the close
of business on the earlier of (i) the tenth (10th) day after the Shares Acquisition Date or
(ii) the tenth (10th) Business Day
(or such later date as may be determined by action of the Board prior to the
Shares Acquisition Date) after the date of the commencement of, or first public
announcement of the intent to commence, by any Person (other than a Company
Entity), a tender or exchange offer the consummation of which would result in
any Person (other than a Company Entity) becoming an Acquiring Person
(including any such date that is after the date of this Agreement and prior to
the issuance of the Rights) (the earlier of the dates in subsections
(i) and (ii) hereof being herein referred to as the “Distribution
Date”), (A) the Rights will be evidenced (subject to the provisions of
Section 3(b)) by the certificates for the Common 

 

11

 

Stock registered in the
names of the holders thereof (which certificates shall be deemed also to be
Right Certificates) and not by separate Right Certificates, and the record
holders of Common Stock represented by such certificates shall be the record
holders of the Rights represented thereby, and (B) the Rights will be
transferable only in connection with the transfer of the Common Stock.  Prior to the Distribution Date, the interests
of the holders of Rights shall be deemed coincident with the interests of the
holders of Common Stock.  As soon as
practicable after the Distribution Date, the Company will prepare and execute,
the Rights Agent will countersign, and the Company will send or cause to be
sent (and the Rights Agent will, if so requested by written notice and provided
with a stockholder list and all other relevant information that the Rights
Agent may reasonably request, send), by first class, postage-prepaid mail, to
each record holder of Common Stock as of the close of business on the
Distribution Date (other than an Acquiring Person or any Affiliate or Associate
of an Acquiring Person), at the address of such holder shown on the records of
the Company, a Right Certificate, in substantially the form of Exhibit B
hereto (a “Right Certificate”), evidencing one Right (subject to
adjustment as provided herein) for each share of Common Stock so held.  As of and after the Distribution Date, the
Rights will be evidenced solely by such Right Certificates.  The Company shall promptly notify the Rights
Agent in writing upon the occurrence of the Distribution Date.  Until such notice is received by the Rights
Agent, the Rights Agent may presume conclusively for all purposes that the
Distribution Date has not occurred.

 

(b)                                 On the Record Date or as soon as
practicable thereafter, the Company will send a copy of a Summary of Rights to
Purchase Preferred Stock, in substantially the form attached hereto as Exhibit C
(the “Summary of Rights”), by first class, postage-prepaid mail or other
means used by the Company to deliver proxy statements to its stockholders, to
each record holder of Common Stock as of the close of business on the Record
Date at the address of such holder shown on the records of the Company.  With respect to shares of Common Stock
outstanding as of the Record Date, until the Distribution Date, the Rights will
be evidenced by such certificates registered in the names of the holders
thereof together with a copy of the Summary of Rights.  Until the Distribution Date (or if earlier,
the Redemption Date or the Expiration Date), the surrender for transfer of any
certificate for Common Stock outstanding on the Record Date, with or without a
copy of the Summary of Rights, shall also constitute the transfer of the Rights
associated with the Common Stock represented thereby.

 

(c)                                  Rights shall be
issued in respect of all shares of Common Stock issued or disposed of
(including, without limitation, upon disposition of Common Stock out of
treasury stock or issuance or reissuance of Common Stock out of authorized but
unissued shares) after the Record Date but prior to the earliest of the
Distribution Date, the Redemption Date and the Expiration Date, or in certain
circumstances provided in Section 22, after the Distribution
Date.  Certificates issued for Common
Stock (including, without limitation, upon transfer of outstanding Common
Stock, disposition of Common Stock out of treasury stock or issuance or
reissuance of Common Stock out of authorized but unissued shares) after the
Record Date but prior to the earliest of the Distribution Date, the Redemption
Date and the Expiration Date shall have impressed on, printed on, written on or
otherwise affixed to them a legend substantially as follows:

 

This certificate also evidences and entitles the holder hereof to
certain Rights as set forth in the Rights Agreement between SuperMedia Inc. and Mellon Investor 

 

12

 

Services LLC, as Rights
Agent, dated as of March 3, 2010, as the same may be
supplemented or amended from time to time (the “Rights Agreement”), the
terms of which are hereby incorporated herein by reference and a copy of which
is on file at the principal executive offices of SuperMedia Inc.  Under certain circumstances, as set forth in
the Rights Agreement, such Rights will be evidenced by separate certificates
and will no longer be evidenced by this certificate.  SuperMedia Inc. will mail to the holder of
this certificate a copy of the Rights Agreement without charge after receipt of
a written request therefor.  Under certain
circumstances, as set forth in the Rights Agreement, Rights acquired or beneficially
owned by any Person who becomes an Acquiring Person or any Affiliate or
Associate of an Acquiring Person (as such terms are defined in the Rights
Agreement) and their transferees will become null and void and will not longer
be transferable.

 

With
respect to such certificates containing the foregoing legend, until the earliest of the
Distribution Date, the Redemption Date and the Expiration Date, the Rights associated with the Common
Stock represented by such certificates shall be evidenced by such certificates
alone, and the surrender for transfer of any of such certificates, except as
otherwise provided herein, shall also constitute the transfer of the Rights
associated with the Common Stock represented by such certificates.

 

In the
event that the Company purchases or acquires any shares of Common Stock after
the Record Date but prior to the Distribution Date, any Rights associated with
such shares of Common Stock shall be deemed cancelled and retired so that the
Company shall not be entitled to exercise any Rights associated with the shares
of Common Stock that are no longer outstanding.

 

Notwithstanding
this Section 3(c), the omission of a legend shall not affect the
enforceability of any part of this Agreement or the rights of any holder of the
Rights.

 

Section 4.                                            Form of Right Certificates. 
The Right Certificates (and the forms of election to purchase shares and
of assignment to be printed on the reverse thereof) shall be substantially the
same as Exhibit B hereto and may have such marks of identification
or designation and such legends, summaries or endorsements printed thereon as
the Company may deem appropriate (but that do not affect the rights, duties or
obligations of the Rights Agent as set forth in this Agreement) and as are not
inconsistent with the provisions of this Agreement, or as may be required to
comply with any applicable law or with any rule or regulation made
pursuant thereto or with any rule or regulation of any stock exchange or
automated quotation system on which the Rights may from time to time be listed,
or to conform to usage.  Subject to the
provisions of Section 22, the Right Certificates, in each case, on
their face shall entitle the holders thereof to purchase such number of shares
of the Preferred Stock as shall be set forth therein at the price per share set
forth therein (the “Purchase Price”), but the number of such shares (and
the type of securities or other property issuance upon exercise of the Rights)
and the Purchase Price shall be subject to adjustment as provided herein.

 

Section 5.                                            Countersignature and Registration. 
The Right Certificates shall be executed on behalf of the Company in the
manner provided in the Amended and Restated By-

 

13

 

Laws of the Company (as it may be amended from time to
time) for Common Stock certificates.  The
Right Certificates shall be countersigned by the Rights Agent, either manually
or by facsimile signature, and shall not be valid for any purpose unless so
countersigned.

 

In
case any officer of the Company who shall have signed any of the Right
Certificates shall cease to be such officer of the Company before
countersignature by the Rights Agent and issuance and delivery by the Company,
such Right Certificates, nevertheless, may be countersigned by the Rights Agent
and issued and delivered with the same force and effect as though the person
who signed such Right Certificates had not ceased to be such officer of the
Company; and any Right Certificate may be signed on behalf of the Company by
any person who, at the actual date of the execution of such Right Certificate,
shall be a proper officer of the Company to sign such Right Certificate,
although at the date of the execution of this Agreement any such person was not
such an officer.

 

Following
the Distribution Date, and receipt by the Rights Agent of (i) written
notice of the Distribution Date pursuant to Section 3(a), and
(ii) a stockholder list and all relevant information reasonably requested
by the Rights Agent pursuant to Section 3(a), the Rights Agent will
keep or cause to be kept, at its office designated for such purposes, books for
registration and transfer of the Right Certificates issued hereunder.  Such books shall show the names and addresses
of the respective holders of the Right Certificates, the number of Rights
evidenced on its face by each of the Right Certificates and the date of each of
the Right Certificates.

 

Section 6.                                            Transfer, Split Up, Combination and
Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right
Certificates.  Subject to the provisions of Section 14,
at any time after the close of business on the Distribution Date, and prior to
the close of business on the earlier of the Redemption Date and the Expiration
Date, any Right Certificate or Right Certificates (other than Right
Certificates representing Rights that have become null and void pursuant to Section 11(a)(ii) or
that have been exchanged pursuant to Section 24) may be
transferred, split up, combined or exchanged for another Right Certificate or
Right Certificates, entitling the registered holder to purchase a like number
of one one-thousandths of a share of Preferred Stock (or, following such time,
other securities, cash or assets as the case may be) as the Right Certificate or
Right Certificates surrendered then entitled such holder to purchase.  Any registered holder desiring to transfer,
split up, combine or exchange any Right Certificate or Right Certificates shall
make such request in writing delivered to the Rights Agent, and shall surrender
the Right Certificate or Right Certificates to be transferred, split up,
combined or exchanged at the office of the Rights Agent designated for such
purposes.  The Rights Certificates are
transferable only on the registry books of the Rights Agent.  Neither the Rights Agent nor the Company
shall be obligated to take any action whatsoever with respect to the transfer
of any such surrendered Right Certificate or Certificates unless and until the
registered holder thereof shall have (i) properly completed and duly
executed the certificate contained in the form of assignment set forth on the
reverse side of each such Right Certificate, (ii) provided such additional
evidence of the identity of the Beneficial Owner (or any former Beneficial Owner
or the proposed Beneficial Owner) thereof and of the Rights evidenced thereby
and the Affiliates and Associates of such Beneficial Owner (or any former
Beneficial Owner or the proposed Beneficial Owner) as the Company or the Rights
Agent shall reasonably request, and (iii) paid a sum sufficient to cover
any tax or charge that may be imposed in connection with any transfer, split
up, combination or exchange or Right Certificates as required by Section 9.  

 

14

 

Thereupon the Rights Agent shall countersign and
deliver to the Person entitled thereto a Right Certificate or Right
Certificates, as the case may be, as so requested, registered in such name or
names as may be designated by the surrendering registered holder.  The Rights Agent shall have no duty or
obligation to take any action under any section of this Agreement that requires
the payment by a Rights holder of applicable taxes and/or charges unless and
until it is satisfied that all such taxes and/or charges have been paid.

 

Upon
receipt by the Company and the Rights Agent of evidence reasonably satisfactory
to them of the loss, theft, destruction or mutilation of a Right Certificate,
and, in the case of loss, theft or destruction, of indemnity or security
satisfactory to them, and, at the Company’s request, reimbursement to the
Company and the Rights Agent of all reasonable expenses incidental thereto, and
upon surrender to the Rights Agent and cancellation of the Right Certificate if
mutilated, the Company will make and deliver a new Right Certificate of like
tenor to the Rights Agent for delivery to the registered owner in lieu of the
Right Certificate so lost, stolen, destroyed or mutilated.

 

Notwithstanding
any other provision of this Agreement to the contrary, the Company and the
Rights Agent may amend this Agreement to provide for uncertificated Rights in
addition to or in place of Rights evidenced by Right Certificates.

 

Section 7.                                            Exercise of Rights:  Purchase Price; Expiration Date of Rights.

 

(a)                                  The registered holder of any Right
Certificate may exercise the Rights evidenced thereby (except as otherwise
provided herein) in whole or in part at any time after the Distribution Date
upon surrender of the Right Certificate, with the form of election to purchase
on the reverse side thereof properly completed and duly executed, to the Rights
Agent at the office of the Rights Agent designated for such purposes together
with payment of the Purchase Price for each one one-thousandth of one share of
the Preferred Stock (or Common Stock, other securities, cash or assets, as the
case may be) as to which the Rights are exercised, at or prior to the earliest
of (i) the Expiration Date, (ii) the time at
which the Rights are redeemed as provided in Section 23 (“Redemption
Date”), or (iii) the time at which such Rights are exchanged as
provided for in Section 24.

 

(b)                                 The Purchase Price for each one
one-thousandth of one share of the Preferred Stock pursuant to the exercise of
a Right shall initially be $150.00, shall be subject to adjustment from time to
time as provided in Section 11 and Section 13, and
shall be payable in lawful money of the United States of America in accordance
with Section 7(c).

 

(c)                                  Upon receipt of a Right Certificate
representing exercisable Rights, with the form of election to purchase properly
completed and duly executed, accompanied by payment of the aggregate Purchase
Price for shares to be purchased and an amount equal to any applicable tax or
charge required to be paid by the holder of such Right Certificate in
accordance with Section 6 in cash, or by certified check or
cashier’s check payable to the order of the Company, the Rights Agent shall
thereupon (i) (A) promptly requisition from any transfer agent of the
Preferred Stock of the Company, or make available if the Rights Agent is the
transfer agent of the Preferred Stock, certificates for the number of one
one-thousandths of a share of the Preferred Stock to be purchased and the
Company hereby irrevocably authorizes its transfer agent to comply with all 

 

15

 

such requests, or (B) promptly requisition from
the depositary agent depositary receipts representing such number of one
one-thousandths of a share of Preferred Stock as are to be purchased (in which
case certificates for the shares of Preferred Stock represented by such
receipts shall be deposited by the transfer agent with the depositary agent)
and the Company hereby directs the depositary agent to comply with such
request, (ii) when necessary to comply with this Agreement, promptly
requisition from the Company the amount of cash to be paid in lieu of issuance
of fractional shares in accordance with Section 14,
(iii) after receipt of such certificates or depositary receipts, promptly cause
the same to be delivered to or upon the order of the registered holder of such
Right Certificate, registered in such name or names as may be designated by
such holder, and (iv) when necessary to comply with this Agreement, after
receipt, promptly deliver such cash to or upon the order of the registered
holder of such Right Certificate.

 

(d)                                 In case the registered holder of any
Right Certificate shall exercise less than all the Rights evidenced thereby, a
new Right Certificate evidencing Rights equivalent to the Rights remaining
unexercised shall be issued by the Rights Agent to the registered holder of
such Right Certificate or to such holder’s duly authorized assigns, subject to
the provisions of Section 14.

 

(e)                                  Notwithstanding anything in this Agreement
to the contrary, neither the Rights Agent nor the Company shall be obligated to
take any action whatsoever with respect to the purported exercise of Rights
pursuant to this Section 7 unless and until the registered holder
thereof shall have (i) properly completed and duly executed the election
to purchase on the reverse side of the Right Certificate surrendered for such
exercise and (ii) provided such additional evidence of the identity of the
Beneficial Owner (or any former Beneficial Owner) thereof and the Affiliates
and Associates of such Beneficial Owner (or any former Beneficial Owner) as the
Company or the Rights Agent shall reasonably request.

 

Section 8.                                            Cancellation and Destruction of Right
Certificates.  All Right Certificates surrendered for the
purpose of exercise, transfer, split up, combination, redemption or exchange
shall, if surrendered to the Company or to any of its agents, be delivered to
the Rights Agent for cancellation or in cancelled form, or, if surrendered to
the Rights Agent, shall be cancelled by it, and no Right Certificates shall be
issued in lieu thereof except as expressly permitted by any of the provisions
of this Agreement.  The Company shall
deliver to the Rights Agent for cancellation and retirement, and the Rights
Agent shall so cancel and retire, any other Right Certificate purchased or
acquired by the Company otherwise than upon the exercise thereof.  The Rights Agent shall deliver all cancelled
Right Certificates to the Company, or shall, at the written request of the
Company, destroy such cancelled Right Certificates, and in such case shall
deliver a certificate of destruction thereof to the Company.

 

Section 9.                                            Reservation and Availability of Shares of
Preferred Stock.  The Company covenants and agrees that it will
cause to be reserved and kept available out of its authorized and unissued
Preferred Stock, or its authorized and issued Preferred Stock held in its
treasury, the number of shares of the Preferred Stock that will be sufficient
to permit the exercise in full of all outstanding Rights in accordance with
this Agreement.

 

So long as the Preferred Stock (and, following the
time that a Person becomes an Acquiring Person, shares of Common Stock or other
securities) issuable upon the exercise of Rights may be listed or admitted to
trading on any national securities exchange or automated 

 

16

 

quotation system, the Company shall use its best
efforts to cause, from and after such time as the Rights become exercisable, all
shares reserved for such issuance to be listed or admitted for trading on such
exchange or automated quotation system upon official notice of issuance upon
such exercise.

 

The
Company covenants and agrees that it will take all such action as may be necessary
to ensure that all shares of the Preferred Stock (and, following the time that
a Person becomes an Acquiring Person, shares of Common Stock or other
securities) delivered upon exercise of Rights shall, at the time of delivery of
the certificates for such (subject to payment of the Purchase Price and
compliance with all other provisions of this Agreement), be duly and validly
authorized and issued and fully paid and nonassessable shares.

 

The
Company further covenants and agrees that it will pay when due and payable any
and all taxes and charges that may be payable in respect of the issuance or
delivery of the Right Certificates or of any shares of the Preferred Stock (or
shares of Common Stock or other securities) upon the exercise of Rights.  The Company shall not, however, be required
(a) to pay any tax or charge that may be payable in respect of any
transfer involved in the transfer or delivery of Right Certificates or the
issuance or delivery of certificates for the Preferred Stock in a name other than
that of the registered holder of the Right Certificate evidencing Rights
surrendered for exercise or (b) to issue or deliver any certificates for
shares of the Preferred Stock upon the exercise of any Rights until any such
tax or charge shall have been paid (any such tax or charge being payable by the
holder of such Right Certificate at the time of surrender) or until it has been
established to the Company’s satisfaction that no such tax or charge is due.

 

The
Company shall, if legally required, (i) prepare and file, as soon as
reasonably possible following the Distribution Date, a registration statement
under the Securities Act with respect to the securities purchasable upon
exercise of or exchangeable for the Rights on an appropriate form, (ii) cause
such registration statement to become effective as soon as reasonably possible
after such filing, and (iii) cause such registration statement to remain
effective (with a prospectus at all times meeting the requirements of the
Securities Act) until the earlier of (x) the date as of which the Rights
are no longer exercisable for such securities and (y) the Expiration
Date.  The Company also shall take all
such action as may be required or as is appropriate under the securities or
blue sky laws of such jurisdictions as may be necessary with respect to the
securities purchasable upon the exercise of or exchangeable for the
Rights.  The Company may temporarily
suspend, for a period not to exceed one hundred twenty (120) days following the
Distribution Date, the exercisability of the Rights in order to prepare and
file such registration statement and permit it to become effective.  Upon any such suspension of exercisability of
Rights referred to in this paragraph, the Company shall issue a public
announcement stating that the exercisability of the Rights has been temporarily
suspended, as well as a public announcement at such time as the suspension is
no longer in effect.  The Company shall
notify the Rights Agent whenever it makes a public announcement pursuant to this
Section 9 and give the Rights Agent a copy of any such
announcement.  Notwithstanding any
provision of this Agreement to the contrary, the Rights shall not be
exercisable in any jurisdiction unless the requisite qualification or exemption
in such jurisdiction shall have been obtained and until a registration
statement under the Securities Act (if required) shall have been declared
effective.

 

17

 

Section 10.                                      Preferred Stock Record Date. 
Each Person in whose name any certificate for shares of the Preferred
Stock is issued upon the exercise of Rights shall for all purposes be deemed to
have become the holder of record of the Preferred Stock represented thereby on,
and such certificate shall be dated, the date upon which the Right Certificate
evidencing such Rights, together with the form of election to purchase properly
completed and duly executed, was duly surrendered and payment of the Purchase
Price (and any applicable taxes or charges) was made; provided, however,
that if the date of such surrender and payment is a date upon which the
Preferred Stock transfer books of the Company are closed, such Person shall be
deemed to have become the record holder of such shares on, and such certificate
shall be dated, the next succeeding Business Day on which the Preferred Stock
transfer books of the Company are open. 
Prior to the exercise of the Rights evidenced thereby, the holder of a
Right Certificate shall not be entitled to any rights of a stockholder of the
Company with respect to shares for which the Rights shall be exercisable,
including, without limitation, the right to vote, to receive dividends or other
distributions or to exercise any preemptive rights, and shall not be entitled
to receive any notice of any proceedings of the Company, except as provided
herein.

 

Section 11.                                      Adjustment of Purchase Price, Number of Shares or
Number of Rights.  The Purchase Price, the number and kind or
class of shares of stock of the Company purchasable upon exercise of each Right
and the number of Rights outstanding are subject to adjustment from time to
time as provided in this Section 11.

 

(a)                                  (i)                                     In the event the Company shall at any time after the
Record Date (A) declare a dividend on the Preferred Stock payable in
shares of Preferred Stock, (B) subdivide the outstanding Preferred Stock,
(C) combine the outstanding Preferred Stock into a smaller number of
shares of Preferred Stock or (D) issue any shares of its capital stock in
a reclassification of the Preferred Stock (including any such
reclassification in connection with a consolidation or merger in which the
Company is the continuing or surviving corporation), except as otherwise
provided in this Section 11(a), the Purchase Price in effect at the
time of the record date for such dividend or of the effective date of such
subdivision, combination or reclassification, and the number and kind of shares
of capital stock issuable on such date, shall be proportionately adjusted so
that the holder of any Right exercised after such time shall be entitled to
receive the aggregate number and kind of shares of capital stock that, if such
Right had been exercised immediately prior to such date and at a time when the
Preferred Stock transfer books of the Company were open, the holder would have
owned upon such exercise and been entitled to receive by virtue of such
dividend, subdivision, combination or reclassification; provided, however,
that in no event shall the consideration to be paid upon the exercise of one
Right be less than the aggregate par value of the shares of Preferred Stock
issuable upon exercise of one Right.  If
an event occurs that would require an adjustment under both Section 11(a)(i) and
Section 11(a)(ii), the adjustment provided for in this Section 11(a)(i) shall
be in addition to, and shall be made prior to, any adjustment required pursuant
to Section 11(a)(ii).

 

(ii)                                  Subject to Section 24, in the
event any Person becomes an Acquiring Person, each holder of a Right shall
thereafter have a right to receive, upon exercise thereof at a price equal to
the Purchase Price in effect immediately prior to such Person becoming an
Acquiring Person multiplied by the number of one one-thousandths of a share of
Preferred Stock for which a Right is then exercisable, in accordance with the
terms of this Agreement and in lieu of shares of Preferred Stock, such number
of shares of Common Stock as shall equal the result 

 

18

 

obtained by (A) multiplying such Purchase Price
by the number of one one-thousandths of a share of Preferred Stock for which a
Right is then exercisable and dividing that product by (B) 50% of the
current market price per share of the Common Stock on the date of the
occurrence of such event; provided, however, that if the
transaction that would otherwise give rise to the adjustment is also subject to
the provisions of Section 13, then only the provisions of Section 13
shall apply and no adjustment shall be made pursuant to this Section 11(a)(ii); provided
further, however, that the Purchase Price (as so adjusted) and
the number of shares of Common Stock so receivable upon exercise of a Right
(or, at the option of the Company, such number of one one-thousandths of a
share of Preferred Stock) shall thereafter be subject to further adjustment as
appropriate in accordance with Section 11(f).  In the event that any Person shall become an
Acquiring Person and the Rights shall then be outstanding, the Company shall
not take any action that would eliminate or diminish the benefits intended to
be afforded by the Rights. 
Notwithstanding anything in this Agreement to the contrary, however,
from and after the time (the “invalidation time”) when any Person first
becomes an Acquiring Person, any Rights that are or were acquired or
beneficially owned by any Acquiring Person (or any Affiliate or Associate of
any Acquiring Person), including, without limitation, any such Rights when held
by (1) a transferee of any Acquiring Person (or any such Affiliate or
Associate) who becomes a transferee after the invalidation time, (2) a
transferee of any Acquiring Person (or any such Affiliate or Associate) who
became a transferee prior to or concurrently with the invalidation time pursuant
to either (x) a transfer from the Acquiring Person to holders of its
equity securities or to any Person with whom it has any continuing agreement,
arrangement or understanding, written or otherwise, regarding the transferred
Rights or (y) a transfer that the Board determines is part of a plan,
arrangement or understanding, written or otherwise, that has the purpose or
effect of avoiding the provisions of this Section 11(a)(ii), or
(3) a subsequent transferee of any Person described in the foregoing clauses
(1) or (2), shall be null and void without any further action and any
holder of such Rights shall thereafter have no right to exercise such Rights
under any provision of this Agreement. 
The Company shall use all reasonable efforts to ensure that the provisions
of this Section 11(a)(ii) are complied with, but shall have no
liability to any holder of Rights or other Person as a result of its failure to
make any determinations with respect to an Acquiring Person or its Affiliates,
Associates or transferees hereunder. 
From and after the invalidation time, no Right Certificate shall be
issued pursuant to Section 3, Section 6 or Section 7(d) that
represents Rights beneficially owned by an Acquiring Person whose Rights would
be null and void pursuant to the preceding sentence or any Associate or
Affiliate thereof; no Right Certificate shall be issued at any time upon the
transfer of any Rights to an Acquiring Person whose Rights would be null and
void pursuant to the preceding sentence or any Associate or Affiliate thereof
or to any nominee of such Acquiring Person, Associate or Affiliate; and any
Right Certificate delivered to the Rights Agent for transfer to an Acquiring
Person or any Associate or Affiliate whose Rights would be null and void
pursuant to the provisions of this paragraph shall be cancelled.

 

(iii)                               The Company may, at its option, substitute for a share
of Common Stock issuable upon the exercise of Rights in accordance with Section 11(a)(ii) a
number of shares of Preferred Stock or fraction thereof such that the current
market price per share of one share of Preferred Stock multiplied by such
number or fraction is equal to the current market price per share of one share
of Common Stock.  In the event that there
shall not be sufficient shares of Common Stock issued but not outstanding or
authorized but unissued to permit the exercise in full of the Rights in
accordance with Section 11(a)(ii), the Board shall, with respect to
such 

 

19

 

deficiency, to the extent permitted by applicable law
and any material agreements then in effect to which the Company is a party,
(A) determine the excess (such excess, the “Spread”) of
(1) the value of the shares of Common Stock issuable upon the exercise of
a Right in accordance with Section 11(a)(ii) (the “Current
Value”) over (2) the Purchase Price in effect immediately prior to
such Person becoming an Acquiring Person multiplied by the number of one
one-thousandths of a share of Preferred Stock for which a Right was exercisable
immediately prior to such Person becoming an Acquiring Person and (B) with
respect to each Right (other than Rights that have become null and void
pursuant to Section 11(a)(ii)), make adequate provision to
substitute for the shares of Common Stock issuable in accordance with Section 11(a)(ii) upon
exercise of the Right and payment of the applicable Purchase Price,
(1) cash, (2) a reduction in such Purchase Price, (3) shares of
Preferred Stock or other equity securities of the Company (including, without
limitation, shares or fractions of shares of preferred stock that, by virtue of
having dividend, voting and liquidation rights substantially comparable to
those of the shares of Common Stock, are deemed in good faith by the Board to
have substantially the same value as the shares of Common Stock (such shares of
Preferred Stock and shares or fractions of shares of preferred stock are
hereinafter referred to as “Common Stock Equivalents”)), (4) debt
securities of the Company, (5) other assets or (6) any combination of
the foregoing, having a value that, when added to the value of the shares of
Common Stock issued upon exercise of such Right, shall have an aggregate value
equal to the Current Value (less the amount of any reduction in such Purchase Price),
where such aggregate value has been determined by the Board upon the advice of
a nationally recognized investment banking firm selected in good faith by the
Board; provided, however, that if the Company shall not make
adequate provision to deliver value pursuant to clause (B) above within
thirty (30) days following the date on which any Person becomes an Acquiring
Person (the date on which any Person becomes an Acquiring Person being the “Section 11(a)(ii) Trigger
Date”), then the Company shall be obligated to deliver, to the extent
permitted by applicable law and any material agreements then in effect to which
the Company is a party, upon the surrender for exercise of a Right and without
requiring payment of such Purchase Price, shares of Common Stock (to the extent
available), and then, if necessary, such number or fractions of shares of
Preferred Stock (to the extent available) and then, if necessary, cash, which
shares and/or cash have an aggregate value equal to the Spread.  If, upon any Person becoming an Acquiring
Person, the Board shall determine in good faith that it is likely that
sufficient additional shares of Common Stock could be authorized for issuance
upon exercise in full of the Rights, then, if the Board so elects, the thirty
(30) day period set forth above may be extended to the extent necessary, but
not more than ninety (90) days after the Section 11(a)(ii) Trigger
Date, in order that the Company may seek stockholder approval for the
authorization of such additional shares (such thirty (30) day period, as it may
be extended, is herein called the “Substitution Period”).  To the extent that the Company determines
that some action need be taken pursuant to the second and/or third sentence of
this Section 11(a)(iii), the Company (x) shall provide,
subject to Section 11(a)(ii) and the last sentence of this Section 11(a)(iii),
that such action shall apply uniformly to all outstanding Rights and
(y) may suspend the exercisability of the Rights until the expiration of
the Substitution Period in order to seek any authorization of additional shares
and/or to decide the appropriate form of distribution to be made pursuant to
such second sentence and to determine the value thereof.  In the event of any such suspension, the
Company shall issue a public announcement stating that the exercisability of
the Rights has been temporarily suspended, as well as a public announcement at
such time as the suspension is no longer in effect.  For purposes of this Section 11(a)(iii),
the value of the shares of Common 

 

20

 

Stock shall be the current market price per share on
the Section 11(a)(ii) Trigger Date and the per share or fractional
value of any Common Stock Equivalent shall be deemed to equal the current market
price per share of the Common Stock.  The
Board may, but shall not be required to, establish procedures to allocate the
right to receive shares of Common Stock upon the exercise of the Rights among
holders of Rights pursuant to this Section 11(a)(iii).

 

(b)                                 In case the Company shall fix a record
date for the issuance of rights, options or warrants to all holders of
Preferred Stock entitling them (for a period expiring
within forty-five (45) calendar days after such record date) to subscribe for
or purchase Preferred Stock (or shares having economically equivalent rights,
privileges and preferences as the Preferred Stock (“equivalent preferred
stock”)) or securities convertible into Preferred Stock or equivalent
preferred stock at a price per share of Preferred Stock or equivalent preferred
stock (or having a conversion price per share, if a security convertible into
Preferred Stock or equivalent preferred stock) less than the current market
price per share of the Preferred Stock on such record date, the Purchase Price
to be in effect after such record date shall be determined by multiplying the
Purchase Price in effect immediately prior to such record date by a fraction,
the numerator of which shall be the number of shares of Preferred Stock and
equivalent preferred stock outstanding on such record date plus the number of
shares of Preferred Stock that the aggregate offering price of the total number
of shares of Preferred Stock and/or equivalent preferred stock so to be offered
(and/or the aggregate initial conversion price of the convertible securities so
to be offered) would purchase at such current market price and the denominator
of which shall be the number of shares of Preferred Stock and equivalent
preferred stock outstanding on such record date plus the number of additional
shares of Preferred Stock and/or equivalent preferred stock to be offered for
subscription or purchase (or into which the convertible securities so to be
offered are initially convertible); provided, however, that in no
event shall the consideration to be paid upon the exercise of one Right be less
than the aggregate par value of the securities issuable upon exercise of one
Right.  In case such subscription price
may be paid in consideration part or all of which shall be in a form other than
cash, the value of such consideration shall be as determined in good faith by
the Board, whose determination shall be described in a written statement filed
with the Rights Agent.  Shares of
Preferred Stock owned by or held for the account of the Company shall not be
deemed outstanding for the purpose of any such computation.  Such adjustment shall be made successively
whenever such a record date is fixed; and in the event that such rights,
options or warrants are not so issued, the Purchase Price shall be adjusted to
be the Purchase Price that would then be in effect if such record date had not
been fixed.

 

(c)                                  In case the Company shall fix a record
date for the making of a distribution to all holders of Preferred Stock
(including any such distribution made in connection with a consolidation or
merger in which the Company is the continuing or surviving corporation) of
evidences of indebtedness or assets (other than (i) a regular periodic
cash dividend, the record date for which occurs at a time when there is no
Acquiring Person, or (ii) a regular periodic cash dividend, the record
date for which occurs at a time when there is an Acquiring Person, at a rate
not in excess of 125% of the rate of the last cash dividend theretofore paid or
(iii) a dividend payable in Preferred Stock) or subscription rights or
warrants (excluding those referred to in Section 11(b)), the
Purchase Price to be in effect after such record date shall be determined by
multiplying the Purchase Price in effect immediately prior to such record date
by a fraction, the numerator of which shall be the current market price per
share of the Preferred Stock on such 

 

21

 

record date, less the fair market value (as determined
in good faith by the Board, whose determination shall be described in a written
statement filed with the Rights Agent) of the portion of the assets or
evidences of indebtedness so to be distributed or of such subscription rights
or warrants applicable to one share of Preferred Stock and the denominator of
which shall be such current market price per share of the Preferred Stock; provided,
however, that in no event shall the consideration to be paid upon the
exercise of one Right be less than the aggregate par value of the shares of
Preferred Stock issuable upon exercise of one Right.  Such adjustments shall be made successively
whenever such a record date is fixed; and in the event that such distribution
is not so made, the Purchase Price shall again be adjusted to be the Purchase
Price that would then be in effect if such record date had not been fixed.

 

(d)                                 (i)                                     For the purpose of any computation hereunder, the “current
market price per share” of any security (a “Security”) on any date
shall be deemed to be the average of the daily closing prices per share of such
Security for the thirty (30) consecutive Trading Days (as such term is
hereinafter defined) immediately prior to such date; provided, however,
that in the event that the current market price per share of the Security is
determined during the period following the announcement by the issuer of such
Security of (A) a dividend or distribution on such Security payable in
shares of such Security or securities convertible into shares of such Security,
or (B) any subdivision, combination or reclassification of such Security,
and prior to the expiration of thirty (30) Trading Days after the ex-dividend
date for such dividend or distribution, or the record date for such
subdivision, combination or reclassification, then, and in each such case, the
current market price per share shall be appropriately adjusted to reflect the
current market price per share equivalent of such security.  The closing price for each day shall be the
last sale price, regular way, or, in case no such sale takes place on such day,
the average of the closing bid and ask prices, regular way, in either case
(1) as reported by the principal consolidated transaction reporting system
with respect to securities listed or admitted to trading on the New York Stock
Exchange, or (2) if the Security is not listed or admitted to trading on
the New York Stock Exchange, as reported by the principal consolidated
transaction reporting system with respect to securities listed on the principal
national securities exchange on which the Security is listed or admitted to
trading, or (3) if the Security is not listed or admitted to trading on
any national securities exchange, the last quoted price or, if not so quoted,
the average of the high bid and low ask prices in the over-the-counter market,
as reported by NASDAQ or such other system then in use, or (4) if on any
such date the Security is not quoted by any such organization, the average of
the closing bid and ask prices as furnished by a professional market maker
making a market in the Security selected by the Board or (5) if on any
such date, no such market maker is making a market in such Security, the fair
market value of the Security on such date as determined in good faith by the
Board.  The term “Trading Day”
shall mean a day on which the principal national securities exchange on which
the Security is listed or admitted to trading is open for the transaction of
business or, if the Security is not listed or admitted to trading on any
national securities exchange, a Business Day.

 

(ii)                                  For the purpose of any computation
hereunder, if the Preferred Stock is publicly traded, the “current market
price per share” of Preferred Stock shall be determined in the same manner
as set forth above for Common Stock in Section 11(d)(i).  If the Preferred Stock is not publicly traded
or if the current market price per share of Preferred Stock cannot be
determined in the manner provided above but the Common Stock is publicly
traded, the “current market price per share” of Preferred Stock shall be
conclusively deemed to be the current market 

 

22

 

price
per share of Common Stock (appropriately adjusted to reflect any stock split,
stock dividend or similar transaction occurring after the Record Date),
multiplied by one thousand.  If neither
the Common Stock nor the Preferred Stock is publicly held or so listed or
traded, the “current market price per share” of Preferred Stock shall
mean the fair value per share as determined in good faith by the Board, whose
determination shall be described in a written statement filed with the Rights
Agent.

 

(e)                                  No adjustment in the Purchase Price shall
be required unless such adjustment would require an increase or decrease of at
least 1% in the Purchase Price; provided, however, that any
adjustments that by reason of this Section 11(e) are not
required to be made shall be carried forward and taken into account in any
subsequent adjustment.  All calculations
under this Section 11 shall be made
to the nearest cent or to the nearest ten-thousandth of a share of Common Stock
or other share (other than Preferred Stock) or ten-millionth of a share of
Preferred Stock, as the case may be. Notwithstanding the first sentence of this
Section 11(e), any adjustment required by this Section 11
shall be made no later than the earlier of (A) three years from the date
of the transaction that mandates such adjustment or (B) the Expiration
Date.

 

(f)                                    If as a result of an adjustment made
pursuant to Section 11(a), the holder of any Right thereafter
exercised shall become entitled to receive any shares of capital stock of the
Company or of any Principal Party other than shares of the Preferred Stock,
thereafter the Purchase Price and the number of such other shares so receivable
upon exercise of any Right shall be subject to adjustment from time to time in
a manner and on terms as nearly equivalent as practicable to the provisions
with respect to the shares of the Preferred Stock contained in Section 11(a),
Section 11(b), Section 11(c), Section 11(e),
Section 11(h), Section 11(i) and Section 11(m),
and the provisions of Section 7, Section 9, Section 10,
Section 13 and Section 14 with respect to the shares of
the Preferred Stock shall apply on like terms to any such other shares.

 

(g)                                 All Rights originally issued by the
Company subsequent to any adjustment made to the Purchase Price hereunder shall
evidence the right to purchase, at the adjusted Purchase Price, the number of
one one-thousandths of a share of the Preferred Stock purchasable from time to
time hereunder upon exercise of the Rights, all subject to further adjustment
as provided herein.

 

(h)                                 Unless the Company shall have exercised
its election as provided in Section 11(i), upon each adjustment of
the Purchase Price as a result of the calculations made in Section 11(b) and
Section 11(c), each Right outstanding immediately prior to the
making of such adjustment shall thereafter evidence the right to purchase, at
the adjusted Purchase Price per one one-thousandth of a share of Preferred
Stock, that number of one one-thousandths of a share of Preferred Stock
(calculated to the nearest ten-millionth) obtained by (i) multiplying
(x) the number of one one-thousandths of a share of Preferred Stock
purchasable upon exercise of a Right immediately prior to this adjustment by
(y) the Purchase Price in effect immediately prior to such adjustment of
the Purchase Price and (ii) dividing the product so obtained by the
Purchase Price in effect immediately after such adjustment of the Purchase
Price.

 

(i)                                     The Company may elect on or after the
date of any adjustment of the Purchase Price to adjust the number of Rights, in
substitution for any adjustment in the number of one one-

 

23

 

thousandths of a share of the Preferred Stock
purchasable upon the exercise of a Right. 
Each of the Rights outstanding after such adjustment of the number of
Rights shall be exercisable for the number of one one-thousandths of a share of
Preferred Stock for which a Right was exercisable immediately prior to such
adjustment.  Each Right held of record
prior to such adjustment of the number of Rights shall become that number of
Rights (calculated to the nearest ten-millionth) obtained by dividing the
Purchase Price in effect immediately prior to adjustment of the Purchase Price
by the Purchase Price in effect immediately after the adjustment of the
Purchase Price.  The Company shall make a
public announcement of its election to adjust the number of Rights (with prompt
written notice thereof to the Rights Agent), indicating the record date for the
adjustment to be made and, if known at the time, the amount of the adjustment
to be made. This record date may be the date on which the Purchase Price is
adjusted or any day thereafter, but, if the Right Certificates have been
issued, shall be at least ten (10) days later than the date of the public
announcement.  If Right Certificates have
been issued, upon each adjustment of the number of Rights pursuant to this Section 11(i), the Company
shall, as promptly as practicable, cause to be distributed to holders of record
of Right Certificates on such record date Right Certificates evidencing,
subject to Section 14, the additional Rights to which such holders
shall be entitled as a result of such adjustment, or, at the option of the
Company, shall cause to be distributed to such holders of record in
substitution and replacement for the Right Certificates held by such holders
prior to the date of adjustment, and upon surrender thereof, if required by the
Company, new Right Certificates evidencing all the Rights to which such holders
shall be entitled after such adjustment. 
Right Certificates to be so distributed shall be issued, executed and
delivered by the Company, and countersigned and delivered by the Rights Agent,
in the manner provided for herein and shall be registered in the names of the
holders of record of Right Certificates on the record date specified in the
public announcement.

 

(j)                                     Irrespective of any adjustment or change
in the Purchase Price or the number of one one-thousandths of a share of the
Preferred Stock issuable upon the exercise of the Rights, the Right
Certificates theretofore and thereafter issued may continue to express the
Purchase Price per one one-thousandth of a share of Preferred Stock and the
number of one one-thousandths of a share that were expressed in the initial
Right Certificates issued hereunder.

 

(k)                                  Before taking any action that would cause
an adjustment reducing the Purchase Price below one one-thousandth of the then
par value, if any, of the shares of the Preferred Stock issuable upon exercise
of the Rights, the Company shall take any corporate action that may, in the
opinion of its counsel, be necessary in order that the Company may validly and
legally issue fully paid and nonassessable shares of such Preferred Stock at
such adjusted Purchase Price.

 

(l)                                     In any case in which this Section 11
shall require that an adjustment in the Purchase Price be made effective as of
a record date for a specified event, the Company may elect (with prompt written
notice of such election to the Rights Agent) to defer until the occurrence of
such event the issuing to the holder of any Right exercised after such record
date the shares of Preferred Stock, Common Stock and other capital stock or
securities of the Company, if any, issuable upon such exercise over and above
the shares of the Preferred Stock, Common Stock and other capital stock or
securities of the Company, if any, issuable upon such exercise on the basis of
the Purchase Price in effect prior to such adjustment; provided, however,
that the Company shall deliver to such holder a due bill or other appropriate
instrument 

 

24

 

evidencing such holder’s right to receive such
additional shares upon the occurrence of the event requiring such adjustment.

 

(m)                               Notwithstanding anything in this Section 11
to the contrary, the Company shall be entitled to make such reductions in the
Purchase Price, in addition to those adjustments expressly required by this Section 11,
as and to the extent that it, in its sole discretion, shall determine to be
advisable in order that any consolidation or subdivision of the Preferred
Stock, issuance wholly for cash of any shares of the Preferred Stock at less
than the current market price, issuance wholly for cash of any shares of the
Preferred Stock or securities that by their terms are convertible into or
exchangeable for Preferred Stock, dividends on the Preferred Stock payable in
Preferred Stock or issuance of rights, options or warrants referred to
hereinabove in this Section 11, hereafter made by the Company to
holders of its Preferred Stock shall not be taxable to such stockholders.

 

(n)                                 In the event that at any time after the
Record Date and prior to the Distribution Date, the Company shall
(i) declare or pay any dividend on the Common Stock payable in Common
Stock or (ii) effect a subdivision, combination or consolidation of the
Common Stock (by reclassification or otherwise than by payment of dividends in
Common Stock) into a greater or lesser number of shares of Common Stock, then
in any such case (A) the number of one one-thousandths of a share of
Preferred Stock purchasable after such event upon proper exercise of each Right
shall be determined by multiplying the number of one one-thousandths of a share
of Preferred Stock so purchasable immediately prior to such event by a
fraction, the numerator of which is the number of shares of Common Stock
outstanding immediately before such event and the denominator of which is the
number of shares of Common Stock outstanding immediately after such event, and
(B) each share of Common Stock outstanding immediately after such event
shall have issued with respect to it that number of Rights that each share of
Common Stock outstanding immediately prior to such event had issued with
respect to it.  The adjustments provided
for in this Section 11(n) shall be made successively whenever
such a dividend is declared or paid or such a subdivision, combination or consolidation
is effected.  If an event occurs that
would require an adjustment under Section 11(a)(ii) and this Section 11(n),
the adjustments provided for in this Section 11(n) shall be in
addition and prior to any adjustment required pursuant to Section 11(a)(ii).

 

(o)                                 The Company agrees that, after the Shares
Acquisition Date, it will not, except as permitted by Section 23, Section 24
or Section 27, take (or permit any subsidiary to take) any action
if, at the time such action is taken, it is reasonably foreseeable that such
action will diminish substantially or eliminate the benefits intended to be
afforded by the Rights.

 

Section 12.                                      Certificate of Adjusted Purchase Price or
Number of Shares.  Whenever an adjustment is made as provided in
Section 11 and Section 13, the Company shall
(a) promptly prepare a certificate setting forth such adjustment and a
brief written statement of the facts accounting for such adjustment,
(b) promptly file with the Rights Agent and with each transfer agent for
the Common Stock and the Preferred Stock a copy of such certificate and
(c) mail a brief summary thereof to each holder of a Right Certificate in
accordance with Section 25 and Section 26.  The Rights Agent shall be fully protected in
relying on any such certificate and on any adjustment or statement contained
therein and shall have no duty or liability with respect to 

 

25

 

and shall not be deemed to have knowledge of such
adjustment or event unless and until it shall have received such certificate.

 

Section 13.                                      Consolidation, Merger or Sale or Transfer of Assets or
Earning Power.

 

(a)                                  In the event that, following the time at
which any Person becomes an Acquiring Person, (i) the Company shall
consolidate with, or merge with and into, any other Person (other than one or
more of its wholly-owned subsidiaries), (ii) any Person (other than one or
more of its wholly-owned subsidiaries) shall consolidate with or merge with and
into the Company and the Company shall be the continuing or surviving
corporation of such merger and, in connection with such merger, all or part of
the Common Stock shall be changed into or exchanged for stock or other
securities of any other Person (or the Company) or cash or any other property,
or (iii) the Company shall sell or otherwise transfer (or one or more of
its subsidiaries shall sell or otherwise transfer), in one or more
transactions, assets or earning power aggregating 50% or more of the assets or
earning power of the Company and its subsidiaries (taken as a whole) to any
other Person (other than the Company or one or more of its wholly-owned
subsidiaries), then, and in each such case, proper provision shall be made so
that (A) each holder of a Right (other than Rights that have been null and
void pursuant to Section 11(a)(ii)) shall thereafter have the right
to receive, upon the exercise thereof at the Purchase Price in effect
immediately prior to such Person becoming an Acquiring Person multiplied by the
number of one one-thousandths of a share of Preferred Stock for which a Right
would then be exercisable (whether or not such Right was then exercisable)
(each as adjusted thereafter pursuant to Section 11(a)(i), Section 11(b),
Section 11(c), Section 11(f), Section 11(h),
Section 11(i) and Section 11(m)), in accordance
with the terms of this Agreement and in lieu of shares of Preferred Stock, such
number of shares of validly issued, fully paid, non-assessable and freely
tradable Senior Voting Stock (as hereinafter defined) of the Principal Party (as
hereinafter defined) (including the Company as successor thereto or as the
surviving corporation), not subject to any liens, encumbrances, rights of call
or first refusal or other adverse claims, as shall be equal to the result
obtained by (1) multiplying such Purchase Price by the then number of one
one-thousandths of share of Preferred Stock for which a Right would then be
exercisable (whether or not such Right was then exercisable) (each as adjusted
thereafter pursuant to Section 11(a)(i), Section 11(b),
Section 11(c), Section 11(f), Section 11(h),
Section 11(i) and Section 11(m)) and dividing that
product by (2) 50% of the current market price per share of the Senior
Voting Stock of such Principal Party (determined in the manner described in Section 11(d))
on the date of consummation of such consolidation, merger, sale or transfer;
provided that the Purchase Price and the number of shares of Senior Voting
Stock of such Principal Party issuable upon exercise of each Right shall be
further adjusted as provided in Section 11(f) to reflect any
events occurring in respect of such Principal Party after the date of such
consolidation, merger, sale or transfer; (B) the Principal Party shall
thereafter be liable for, and shall assume, by virtue of such consolidation,
merger, sale or transfer, all the obligations and duties of the Company
pursuant to this Agreement; (C) the term “Company” shall thereafter
be deemed to refer to such Principal Party, it being specifically intended that
the provisions of Section 11 shall apply to such Principal Party
following the occurrence of such consolidation, merger, sale or transfer; and
(D) such Principal Party shall take such steps (including, but not limited
to, the reservation of a sufficient number of shares of its Senior Voting Stock
in accordance with Section 9, with each reference to Preferred
Stock in Section 9 being deemed to be a reference to the shares of
its Senior Voting Stock) in connection with such consummation as may be
necessary to assure that the provisions hereof shall thereafter 

 

26

 

be applicable, as nearly as reasonably may be, in
relation to the shares of its Senior Voting Stock thereafter deliverable upon
the exercise of the Rights; provided that, upon the subsequent occurrence of
any consolidation, merger, sale or transfer of assets or other extraordinary
transaction in respect of such Principal Party, each holder of a Right shall
thereupon be entitled to receive, upon exercise of a Right and payment of the Purchase
Price as provided in this Section 13(a), such cash, shares, rights,
warrants and other property that such holder would have been entitled to
receive had such holder, at the time of such transaction, owned the Senior
Voting Stock of the Principal Party receivable upon the exercise of a Right
pursuant to this Section 13(a), and such Principal Party shall take
such steps (including, but not limited to, reservation of shares of stock) as
may be necessary to permit the subsequent exercise of the Rights in accordance
with the terms hereof for such cash, shares, rights, warrants and other
property.

 

(b)                                 “Principal Party” shall mean
(i) in the case of any transaction described in Section 13(a)(i) or
Section 13(a)(ii), (A) the Person that is the issuer of any
securities into which shares of Common Stock are converted in such merger or
consolidation (or, if there is more than one such issuer, the issuer of such
securities that has the greatest aggregate market value of securities
outstanding), or (B) if no securities are so issued, (1) the Person
that is the other party to the merger if such Person survives said merger (or,
if there is more than one such Person, such Person who has the greatest
aggregate market value of securities outstanding) or (2) if the Person
that is the other party to the merger does not survive the merger, the Person
that does survive the merger (including the Company if it survives) or
(3) the Person resulting from the consolidation and (ii) in
the case of any transaction described in Section 13(a)(iii), the
Person that is the other party to such transaction or, if more than one, the
Person that is the party receiving the greatest portion of the assets or
earning power transferred pursuant to such transaction; provided, however,
that in any such case, if the Senior Voting Stock of such Person is not at such
time and has not been continuously over the preceding 12-month period
registered under Section 12 of the Exchange Act, then (w) if such
Person is a direct or indirect subsidiary of another Person the Senior Voting
Stock of which is and has been so registered, the term “Principal Party”
shall refer to such other Person; or (x) if such Person is a subsidiary,
directly or indirectly, of more than one Person and the Senior Voting Stock of
any two or more of such Persons is and has been so registered, the term “Principal
Party” shall refer to whichever of such Persons is the issuer of the Senior
Voting Stock having the greatest aggregate market value of shares outstanding;
or (y) if such Person is owned, directly or indirectly, by a joint venture
formed by two or more Persons that are not owned, directly or indirectly, by
the same Person, the rules set forth in clauses (w) and
(x) above shall apply to each of the owners having an interest in such
joint venture as if such joint venture were a subsidiary of both or all of such
joint venturers and the Principal Party in each such chain shall bear the
obligations set forth in this Section 13 in the same ratio as their
direct or indirect interests in such joint venture bear to the total of such
interests.  “Senior Voting Stock”
shall mean the capital stock (or equity interest) of the Principal Party with
the greatest voting power.

 

(c)                                  The Company shall not consummate any such
consolidation, merger, sale or transfer unless prior thereto the Company and
such Principal Party or Parties shall have executed and delivered to the Rights
Agent a supplemental agreement providing for the terms set forth in Section 13(a) and
Section 13(b) and further providing that, as soon as
practicable after the date of any consolidation, merger or sale or transfer of
assets mentioned in Section 13(a), the Principal Party or Parties
will (i) prepare and file a registration statement under the Securities

 

27

 

Act with respect to the
Rights and the securities purchasable upon exercise of the Rights on an
appropriate form, will use its best efforts (A) to cause such registration
statement to become effective as soon as practicable after such filing,
(B) to cause such registration statement to remain effective (with a
prospectus at all times meeting the requirements of the Securities Act) until
the Expiration Date, and (C) to similarly comply with applicable state
securities laws, and use its best efforts to list (or continue the listing of)
the Rights and the securities purchasable upon exercise of the Rights on a
national securities exchange; (ii) will deliver to holders of the Rights
historical financial statements for the Principal Party or Parties and each of
its Affiliates that comply in all respects with the requirements for
registration on Form 10 (or any successor form) under the Exchange Act and
(iii) obtain waivers of any rights of first refusal or preemptive rights
in respect of the Common Stock of the Principal Party subject to purchase upon
exercise of outstanding Rights.

 

(d)                                 If the
Principal Party has a provision in any of its authorized securities or in its
certificate of incorporation or by-laws or other instrument governing its
affairs, which provision would have the effect of (i) causing such
Principal Party to issue (other than to holders of Rights pursuant to this Section 13),
in connection with, or as a consequence of, the consummation of a transaction
referred to in this Section 13, shares of Senior Voting Stock or
Senior Voting Stock equivalents of such Principal Party at less than the
then-current market price per share thereof or securities exercisable for, or
convertible into, Senior Voting Stock or Senior Voting Stock equivalents of
such Principal Party at less than such then-current market price or
(ii) providing for any special payment, tax or similar provision in
connection with the issuance of the Senior Voting Stock of such Principal Party
pursuant to the provisions of this Section 13, then, in such event,
the Company hereby covenants and agrees with each holder of Rights that it
shall not consummate any such transaction unless prior thereto the Company and
such Principal Party shall have executed and delivered to the Rights Agent a
supplemental agreement providing that the provision in question of such
Principal Party shall have been canceled, waived or amended, or that the
authorized securities shall be redeemed, so that the applicable provision will
have no effect in connection with, or as a consequence of, the consummation of
the proposed transaction.

 

(e)                                  The Company covenants and agrees that it
shall not, at any time after a Person first becomes an Acquiring Person, enter
into any transaction of the kind referred to in this Section 13 if
(x) at the time of such transaction there are any rights, warrants,
instruments or securities outstanding or any agreements or arrangements that,
as a result of the consummation of such transaction, would eliminate or substantially
diminish the benefits intended to be afforded by the Rights, (y) prior to,
simultaneously with or immediately after such transaction, the stockholders of
the Person who constitutes, or would constitute, the Principal Party for
purposes of Section 13(b) shall have received a distribution
of Rights previously owned by such Person or any of its Affiliates or
Associates or (z) the form or nature of organization of the Principal
Party would preclude or limit the exercisability of the Rights.  The provisions of this Section 13
shall similarly apply to successive mergers or consolidations or sales or other
transfers.

 

Section 14.                                      Fractional Rights and Fractional Shares.

 

(a)                                  The Company shall not be required to
issue fractions of Rights or to distribute Right Certificates that evidence
fractional Rights.  In lieu of such
fractional Rights, there shall be 

 

28

 

paid to the registered holders of the Right
Certificates, with regard to which such fractional Rights would otherwise be
issuable, an amount in cash equal to the same fraction of the current market
value of a whole Right. For the purposes of this Section 14(a), the
current market value of a whole Right shall be the closing price of the Rights
for the Trading Day immediately prior to the date on which such fractional
Rights would have been otherwise issuable. 
The closing price for any day shall be the last sale price, regular way,
or, in case no such sale takes place on such day, the average of the closing
bid and ask prices, regular way, in either case (i) as reported by the
principal consolidated transaction reporting system with respect to securities
listed or admitted to trading on the New York Stock Exchange, or (ii) if
the Rights are not listed or admitted to trading on the New York Stock
Exchange, as reported by the principal consolidated transaction reporting
system with respect to securities listed on the principal national securities
exchange on which the Rights are listed or admitted to trading, or
(iii) if the Rights are not listed or admitted to trading on any national
securities exchange, the last quoted price or, if not so quoted, the average of
the high bid and low ask prices in the over-the-counter market, as reported by
NASDAQ or such other system then in use, or (iv) if on any such date the
Rights are not quoted by any such organization, the average of the closing bid
and ask prices as furnished by a professional market maker making a market in
the Rights selected by the Board or (v) if on any such date, no such
market maker is making a market in the Rights, the fair market value of the
Rights on such date as determined in good faith by the Board.

 

(b)                                 The Company shall not be required to
issue fractions of shares of Preferred Stock (other than fractions that are
integral multiples of one one-thousandth of a share of Preferred Stock) upon
exercise or exchange of the Rights or to distribute certificates that evidence
fractional shares of Preferred Stock (other than fractions that are integral
multiples of one one-thousandth of a share of Preferred Stock).  Fractions of shares of Preferred Stock in
integral multiples of one one-thousandth of a share of Preferred Stock may, at
the election of the Company, be evidenced by depositary receipts, pursuant to
an appropriate agreement between the Company and a depositary selected by it,
provided that such agreement shall provide that the holders of such depositary
receipts shall have all the rights, privileges and preferences to which they
are entitled as beneficial owners of shares of Preferred Stock.  In lieu of fractional shares that are not
integral multiples of one one-thousandth of a share of Preferred Stock, the
Company shall pay to the registered holders of Right Certificates with regard
to which such fractional shares would otherwise be issuable an amount in cash
equal to the same fraction of the current market value of a whole share of
Preferred Stock.  For purposes of this Section 14(b),
the current market value of a whole share of Preferred Stock shall be the
closing price of a share of Preferred Stock (as determined pursuant to the
second sentence of Section 11(d)(i)) for the Trading Day immediately
prior to the date of such exercise or exchange).

 

(c)                                  The Company shall not be required to
issue fractions of shares of Common Stock upon exercise or exchange of the
Rights or to distribute certificates that evidence fractional shares of Common
Stock.  In lieu of such fractional
shares, the Company shall pay to the registered holders of Right Certificates
with regard to which such fractional shares would otherwise be issuable an
amount in cash equal to the same fraction of the current market value of a
whole share of Common Stock.  For
purposes of this Section 14(c), the current market value of a whole
share of Common Stock shall be the closing price of a share of Common Stock (as
determined pursuant to the second sentence of Section 11(d)(i)) for
the Trading Day immediately prior to the date of such exercise or exchange).

 

29

 

(d)                                 The holder of a Right by the acceptance
of the Right expressly waives such holder’s right to receive any fractional
Rights or any fractional shares upon exercise of a Right (except as above
provided).

 

(e)                                  Whenever a payment for fractional Rights
or fractional shares is to be made by the Rights Agent, the Company shall
(i) promptly prepare and deliver to the Rights Agent a certificate setting
forth in reasonable detail the facts related to such payments and the prices
and/or formulas utilized in calculating such payments, and (ii) provide
sufficient monies to the Rights Agent in the form of fully collected funds to
make such payments.  The Rights Agent
shall be fully protected in relying upon such a certificate and shall have no
duty with respect to, and shall not be deemed to have knowledge of any payment
for fractional Rights or fractional shares under any section of this Agreement
relating to the payment of fractional Rights or fractional shares unless and
until the Rights Agent shall have received such a certificate and sufficient
monies.

 

Section 15.                                      Rights of Action. 
All rights of action in respect of this Agreement are vested in the
respective registered holders of the Right Certificates (and, prior to the
Distribution Date, the registered holders of the Common Stock); and any
registered holder of any Right Certificate (or, prior to the Distribution Date,
of any certificate evidencing shares of the Common Stock), without the consent
of the Rights Agent or of the registered holder of any other Right Certificate
(or, prior to the Distribution Date, of any certificate evidencing shares of
the Common Stock), may, in such holder’s own behalf and for such holder’s own
benefit, enforce, and may institute and maintain any suit, action or proceeding
against the Company to enforce this Agreement, or otherwise act in respect of
such holder’s right to exercise the Rights evidenced by such Right Certificate
(or, prior to the Distribution Date, by such certificate evidencing the Common
Stock) in the manner provided in such Right Certificate and in this
Agreement.  Without limiting the
foregoing or any remedies available to the registered holders of Rights, it is
specifically acknowledged that the registered holders of Rights would not have
an adequate remedy at law for any breach of this Agreement and will be entitled
to specific performance of the obligations under, and injunctive relief against
actual or threatened violations of the obligations of any Person subject to,
this Agreement.

 

Notwithstanding
anything in this Agreement to the contrary, neither the Company nor the Rights
Agent shall have any liability to any registered holder of a Right or other
Person as a result of the Company’s or the Rights Agent’s inability to perform
any of their respective obligations under this Agreement by reason of any
preliminary or permanent injunction or other order, judgment, decree or ruling
(whether interlocutory or final) issued by a court or by a governmental,
regulatory, self-regulatory or administrative agency or commission, or any
statute, rule, regulation or executive order promulgated or enacted by any
governmental authority, prohibiting or otherwise restraining performance of
such obligation.

 

Section 16.                                      Agreement of Right Holders. 
Every holder of a Right, by accepting the same, consents and agrees with
the Company and the Rights Agent and with every other holder of a Right that:

 

(a)                                  prior to the Distribution Date, the
Rights will be transferable only in connection with the transfer of the Common
Stock;

 

30

 

(b)                                 after the Distribution Date, the Right
Certificates are transferable only on the registry books of the Rights Agent if
surrendered at the office or offices of the Rights Agent designated for such
purposes, duly endorsed or accompanied by a proper instrument of transfer and
with the appropriate forms and certificates properly completed and duly
executed;

 

(c)                                  the Company and the Rights Agent may deem
and treat the Person in whose name the Right Certificate (or, prior to the
Distribution Date, the associated Common Stock certificate) is registered as
the absolute owner thereof and of the Rights evidenced thereby (notwithstanding
any notations of ownership or writing on the Right Certificates or the
associated Common Stock certificates made by anyone other than the Company or
the Rights Agent) for all purposes whatsoever, and neither the Company nor the
Rights Agent shall be affected by any notice to the contrary;

 

(d)                                 this Agreement may be supplemented or
amended from time to time in accordance with its terms; and

 

(e)                                  the power and authority delegated to the
Board pursuant to this Agreement shall be exclusive and shall be as set forth
in Section 30.

 

Section 17.                                      Right Certificate Holder Not Deemed a
Stockholder.  No holder, as such, of any Right Certificate
shall be entitled to vote, receive dividends or be deemed for any purpose the
holder of the Preferred Stock or any other securities of the Company that may
at any time be issuable on the exercise of the Rights represented thereby, nor
shall anything contained herein or in any Right Certificate be construed to
confer upon the holder of any Right Certificate, as such, any of the rights of
a stockholder of the Company or any right to vote for the election of directors
or upon any matter submitted to stockholders at any meeting thereof, or to give
or withhold consent to any corporate action, or to receive notice of meetings
or other actions affecting stockholders (except as provided in Section 23,
Section 24 or Section 25), or to receive dividends or
subscription rights, or otherwise, until the Right or Rights evidenced by such
Right Certificate shall have been exercised in accordance with the provisions
hereof.

 

Section 18.                                      Concerning the Rights Agent. 
The Company agrees to pay to the Rights Agent reasonable compensation
for all services rendered by it hereunder and, from time to time, on demand of
the Rights Agent, its reasonable expenses and other disbursements (including
but not limited to counsel fees and disbursements) incurred in the
administration and execution of this Agreement and the exercise and performance
of its duties hereunder.  The Company
also agrees to indemnify the Rights Agent for, and to hold it harmless against,
any loss, liability, damage, judgment, fine, penalty, claim, demand,
settlement, cost or expense (including, without limitation, the reasonable fees
and expenses of legal counsel), incurred without gross negligence, bad faith or
willful misconduct on the part of the Rights Agent for any action taken,
suffered or omitted by the Rights Agent in connection with the acceptance,
administration and performance of its duties under this Agreement, including
the costs and expenses of defending against any claim of liability in the
premises and the enforcement of this indemnification.  The provisions of this Section 18
and of Section 20 shall survive the termination of this Agreement,
the exercise of or expiration of the Rights and the resignation, replacement or
removal of the Rights Agent.

 

31

 

The
Rights Agent shall be protected and shall incur no liability for or in respect
of any action taken, suffered or omitted by it in connection with its
administration of this Agreement in reliance upon any Right Certificate or
certificate for the Preferred Stock or for other securities of the Company,
instrument of assignment or transfer, power of attorney, endorsement,
affidavit, letter, notice, direction, consent, certificate, statement or other
paper or document believed by it to be genuine and to be signed, executed and,
where necessary, verified or acknowledged, by the proper person or persons or
otherwise upon the advice of counsel as set forth in Section 20.  The Rights Agent shall not be deemed to have
knowledge of any event of which it was supposed to receive notice hereunder,
and the Rights Agent shall be fully protected and shall incur no liability for
failing to take action in connection therewith, unless and until it has
received such notice in writing.

 

Section 19.                                      Merger or Consolidation or Change of Name
of Rights Agent.  Any Person into which the Rights Agent or any
successor Rights Agent may be merged or with which it may be consolidated, or
any Person resulting from any merger or consolidation to which the Rights Agent
or any successor Rights Agent shall be a party, or any Person succeeding to the
appropriate business of the Rights Agent or any successor Rights Agent shall be
the successor to the Rights Agent under this Agreement without the execution or
filing of any paper or any further act on the part of any of the parties
hereto, provided that such Person would be eligible for appointment as a
successor Rights Agent under the provisions of Section 21.  In case at the time such successor Rights
Agent shall succeed to the agency created by this Agreement, any of the Right
Certificates shall have been countersigned but not delivered, any such
successor Rights Agent may adopt the countersignature of the predecessor Rights
Agent and deliver such Right Certificates so countersigned; and in case at that
time any of the Right Certificates shall not have been countersigned, any successor
Rights Agent may countersign such Right Certificates either in the name of the
predecessor Rights Agent or in the name of the successor Rights Agent; and in
all such cases such Right Certificates shall have the full force provided in
the Right Certificates and in this Agreement.

 

In
case at any time the name of the Rights Agent shall be changed and at such time
any of the Right Certificates shall have been countersigned but not delivered,
the Rights Agent may adopt the countersignature under its prior name and
deliver Right Certificates so countersigned; and in case at that time any of
the Right Certificates shall not have been countersigned, the Rights Agent may
countersign such Right Certificates either in its prior name or in its changed
name; and in all such cases such Right Certificates shall have the full force
provided in the Right Certificates and in this Agreement.

 

Section 20.                                      Duties of Rights Agent. 
The Rights Agent undertakes the duties and obligations expressly imposed
by this Agreement upon the following terms and conditions, by all of which the
Company and the holders of Right Certificates, by their acceptance thereof,
shall be bound:

 

(a)                                  The Rights Agent may consult with the
legal counsel (who may be legal counsel for the Company or an employee of the
Rights Agent), and the advice or opinion of such counsel shall be full and
complete authorization and protection to the Rights Agent and the Rights Agent
shall incur no liability for or in respect of any action taken, suffered or
omitted by it in accordance with such advice or opinion.

 

32

 

(b)                                 Whenever in the performance of its duties
under this Agreement the Rights Agent shall deem it necessary or desirable that
any fact or matter (including, without limitation, the identity of any
Acquiring Person and the determination of “current market price per share”) be
proved or established by the Company prior to taking or suffering any action
hereunder, such fact or matter (unless other evidence in respect thereof be
herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by any one of the Chairman of the Board,
the President, any Vice President, the Treasurer or the Secretary of the
Company and delivered to the Rights Agent; and such certificate shall be full
and complete authorization and protection to the Rights Agent for any action
taken, suffered or omitted by it under the provisions of this Agreement in
reliance upon such certificate.

 

(c)                                  The Rights Agent shall be liable
hereunder for only its own gross negligence, bad faith or willful misconduct
(which gross negligence, bad faith or willful misconduct must be determined by
a final, non-appealable order, judgment, decree or ruling of a court of
competent jurisdiction).  Anything to the
contrary notwithstanding, in no event shall the Rights Agent be liable for
special, punitive, indirect, consequential or incidental loss or damage of any
kind whatsoever (including but not limited to lost profits), even if the Rights
Agent has been advised of the likelihood of such loss or damage.  Any liability of the Rights Agent under this
Agreement will be limited to the aggregate amount of fees paid by the Company
to the Rights Agent.

 

(d)                                 The Rights Agent shall not be liable for
or by reason of any of the statements of fact or recitals contained in this
Agreement or in the Right Certificates (except its countersignature thereof) or
be required to verify the same, but all such statements and recitals are and shall
be deemed to have been made by the Company only.

 

(e)                                  The Rights Agent shall not be under any
responsibility in respect of the validity of this Agreement or the execution
and delivery hereof (except the due execution hereof by the Rights Agent) or in
respect of the validity or execution of any Right Certificate (except its
countersignature thereof); nor shall it be responsible for any breach by the
Company of any covenant or condition contained in this Agreement or in any
Right Certificate; nor shall it be responsible for any change in the
exercisability of Rights (including any Rights becoming null and void pursuant
to Section 11(a)(ii)) or any adjustment in the terms of the Rights
(including the manner, method or amount thereof) provided for in Section 3,
Section 11, Section 13, Section 23 or Section 24,
or the ascertaining of the existence of facts that would require any such
change or adjustment (except with respect to the exercise of Rights evidenced
by Right Certificates after actual notice that such change or adjustment is
required); nor shall it by any act hereunder be deemed to make any
representation or warranty as to the authorization or reservation of any shares
of the Preferred Stock to be issued pursuant to this Agreement or any Right
Certificate or as to whether any shares of the Preferred Stock will, when
issued, be validly authorized and issued, fully paid and nonassessable.

 

(f)                                    The Company agrees that it will perform,
execute, acknowledge and deliver or cause to be performed, executed, acknowledged
and delivered all such further and other acts, instruments and assurances as
may reasonably be required by the Rights Agent for the carrying out or
performing by the Rights Agent of the provisions of this Agreement.

 

33

 

(g)                                 The Rights Agent is hereby authorized and
directed to accept instructions with respect to the performance of its duties
hereunder from the Chairman of the Board, the Chief Executive Officer, the
President, any Vice President, the Secretary or the Treasurer of the Company,
and such instructions shall be full authorization and protection to the Rights
Agent and the Rights Agent shall not be liable for or in respect of any action
taken, suffered or omitted by it in accordance with instructions of any such
officer or for any delay in acting while waiting for those instructions.  The Rights Agent shall be fully authorized
and protected in relying upon the most recent instructions received by any such
officer.  Any application by the Rights
Agent for written instructions from the Company may, at the option of the
Rights Agent, set forth in writing any action proposed to be taken, suffered or
omitted by the Rights Agent under this Agreement and the date on and/or after
which such action shall be taken or suffered or such omission shall be
effective.  The Rights Agent shall not be
liable for any action taken or suffered by, or omission of, the Rights Agent in
accordance with a proposal included in any such application on or after the
date specified in such application (which date shall not be less than five
(5) Business Days after the date any officer of the Company actually
receives such application, unless any such officer shall have consented in
writing to an earlier date) unless, prior to taking any such action (or the
effective date in the case of an omission), the Rights Agent shall have
received written instructions in response to such application specifying the
action to be taken, suffered or omitted.

 

(h)                                 The Rights Agent and any stockholder,
director, officer or employee of the Rights Agent may buy, sell or deal in any
of the Rights or other securities of the Company or become pecuniarily
interested in any transaction in which the Company may be interested, or
contract with or lend money to the Company or otherwise act as fully and freely
as though it were not Rights Agent under this Agreement.  Nothing herein shall preclude the Rights
Agent from acting in any other capacity for the Company or for any other
Person.

 

(i)                                     The Rights Agent may execute and exercise
any of the rights or powers hereby vested in it or perform any duty hereunder
either itself (through its directors, officers and employees) or by or through
its attorneys or agents, and the Rights Agent shall not be answerable or
accountable for any act, default, neglect or misconduct of any such attorneys
or agents or for any loss to the Company resulting from any such act, default,
neglect or misconduct, absent gross negligence, bad faith or willful misconduct
in the selection and continued employment thereof (which gross negligence, bad
faith or willful misconduct must be determined by a final, non-appealable
order, judgment, decree or ruling of a court of competent jurisdiction).

 

(j)                                     If, with respect to any Right Certificate
surrendered to the Rights Agent for exercise or transfer, the certificate
attached to the form of assignment or form of election to purchase, as the case
may be, has either not been properly completed or indicates that the Rights are
beneficially owned by an Acquiring Person or an Affiliate or Associate thereof,
the Rights Agent shall not take any further action with respect to such
requested exercise or transfer without first consulting with the Company.

 

(k)                                  The Rights Agent shall have no
responsibility to the Company, any holders of Rights or any holders of shares
of Preferred Stock or other securities for interest or earnings on any monies
held by the Rights Agent pursuant to this Agreement, except as otherwise
specifically agreed in a separate writing by the Company and the Rights Agent.

 

34

 

(l)                                     The Rights Agent shall not be required to
take notice or be deemed to have notice of any event or condition hereunder,
including, but not limited to, a Distribution Date, a Redemption Date, any
adjustment of the Purchase Price, the existence of an Acquiring Person or any
other event or condition that may require action by the Rights Agent, unless
the Rights Agent shall be specifically notified in writing of such event or
condition by the Company, and all notices or other instruments required by this
Agreement to be delivered to the Rights Agent must, in order to be effective,
be received by the Rights Agent as specified in Section 26, and in
the absence of such notice so delivered, the Rights Agent may conclusively
assume no such event or condition exists.

 

Section 21.                                      Change of Rights Agent. 
The Rights Agent or any successor Rights Agent may resign and be
discharged from its duties under this Agreement upon thirty (30) days’ notice
in writing mailed to the Company and to each transfer agent of the Common Stock
and the Preferred Stock by registered or certified mail.  In the event the transfer agency relationship
in effect between the Company and the Rights Agent terminates, the Rights Agent
will be deemed to have resigned automatically and be discharged from its duties
under this Agreement as of the effective date of such termination.  The Company may remove the Rights Agent or any
successor Rights Agent upon thirty (30) days’ notice in writing, mailed to the
Rights Agent or successor Rights Agent, as the case may be, and to each
transfer agent of the Common Stock and the Preferred Stock by registered or
certified mail.  The Company will provide
notice of any resignation (including any automatic resignation) or removal of
any Rights Agent to the holders of the Right Certificates by first class mail
as soon as practicable after such event. 
If the Rights Agent shall resign or be removed or shall otherwise become
incapable of acting, the Company shall appoint a successor to the Rights
Agent.  If the Company shall fail to make
such appointment within a period of thirty (30) days after giving notice of
such removal or after it has been notified in writing of such resignation or
incapacity by the resigning or incapacitated Rights Agent or by the holder of a
Right Certificate (who shall, with such notice, submit such holder’s Right
Certificate for inspection by the Company), then the registered holder of any
Right Certificate may apply to any court of competent jurisdiction for the
appointment of a new Rights Agent.  Any
successor Rights Agent, whether appointed by the Company or by such a court,
shall be a Person (or an Affiliate of such a Person) organized and doing
business under the laws of the United States or any state of the United States,
in good standing, that is authorized under such laws to exercise corporate
trust powers or stock transfer powers and is subject to supervision or
examination by federal or state authority and that has at the time of its
appointment as Rights Agent a combined capital and surplus of at least $50
million.  After appointment, the
successor Rights Agent shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Rights Agent without
further act or deed; but the predecessor Rights Agent shall deliver and
transfer to the successor Rights Agent any property at the time held by it
hereunder, and execute and deliver any further assurance, conveyance, act or
deed necessary for the purpose.  Not
later than the effective date of any such appointment, the Company shall file
notice thereof in writing with the predecessor Rights Agent and each transfer
agent of the Common Stock or Preferred Stock, and mail a notice thereof in
writing to the registered holders of the Right Certificates.  Failure to give any notice provided for in
this Section 21, however, or any defect therein, shall not affect
the legality or validity of the resignation or removal of the Rights Agent or
the appointment of the successor Rights Agent, as the case may be.

 

35

 

Section 22.                                      Issuance of New Right Certificates. 
Notwithstanding any of the provisions of this Agreement or of the Rights
to the contrary, the Company, at its option, may issue new Right Certificates
evidencing Rights in such form as may be approved by the Board to reflect any
adjustment or change in the Purchase Price and the number or kind or class of
shares or other securities or property purchasable under the Right Certificates
made in accordance with the provisions of this Agreement.  In addition, in connection with the issuance
or sale of Common Stock following the Distribution Date and prior to the
Expiration Date, the Company may, with respect to shares of Common Stock so
issued or sold pursuant to (a) the exercise of stock options,
(b) under any employee plan or arrangement, (c) the exercise,
conversion or exchange of securities, notes or debentures issued by the Company
or (d) a contractual obligation of the Company, in each case existing
prior to the Distribution Date, issue Right Certificates representing the
appropriate number of Rights in connection with such issuance or sale.

 

Section 23.                                      Redemption.

 

(a)                                  The Board (with the concurrent approval
by a majority of the members of the Special Independent Committee) may, at its
option, at any time prior to the Shares Acquisition Date, redeem all but not
less than all of the then outstanding Rights at a redemption price of $0.001
per Right, appropriately adjusted to reflect any stock split, stock dividend or
similar transaction occurring after the Record Date (such redemption price
being hereinafter referred to as the “Redemption Price”).  The redemption of the Rights may be made
effective at such time, on such basis and with such conditions as the Board in
its sole discretion may establish.  The
Company may, at its option, pay the Redemption Price in cash, shares of Common
Stock (based on the current market price of the Common Stock at the time of
redemption as determined pursuant to Section 11(d)(i)) or any other
form of consideration deemed appropriate by the Board, or any combination
thereof.

 

(b)                                 If the Company receives a Qualified Offer
and the Board has not redeemed the outstanding Rights or exempted such
Qualified Offer from the terms of this Agreement or called a special meeting of
stockholders for the purpose of voting on whether or not to exempt such
Qualified Offer from the terms of this Agreement, in each case by the end of
ninety (90) days following the commencement of such Qualified Offer, and if the
Company receives, not earlier than ninety (90) days nor later than one hundred
twenty (120) days following the commencement of such Qualified Offer, a written
notice complying with the terms of this Section 23(b) (the “Special
Meeting Notice”), properly executed by the holders of record (or their duly
authorized proxy) of 10% or more of the shares of Common Stock then outstanding
(excluding shares of Common Stock beneficially owned by the Person making the
Qualified Offer and such Person’s Affiliates and Associates), directing the
Board to submit to a vote of stockholders at a special meeting of the
stockholders of the Company (a “Special Meeting”) a resolution authorizing
the redemption of all, but not less than all, of the then outstanding Rights at
the Redemption Price (the “Redemption Resolution”), then the Board shall
take such actions as are necessary or desirable to cause the Redemption
Resolution to be submitted to a vote of stockholders within ninety (90)
Business Days following receipt by the Company of the Special Meeting Notice
(the “Special Meeting Period”), including by including a proposal
relating to adoption of the Redemption Resolution in the proxy materials of the
Company for the Special Meeting; provided, however, that if the
Company, at any time during the Special Meeting Period and prior to a vote on
the Redemption Resolution, enters into a Definitive Acquisition Agreement, the 

 

36

 

Special Meeting Period may be extended (and any
Special Meeting called in connection therewith may be cancelled) if the
Redemption Resolution will be separately submitted to a vote at the same
meeting as the Definitive Acquisition Agreement.  For purposes of a Special Meeting Notice, the
record date for determining eligible holders of record of the Common Stock
shall be the ninetieth (90th) day
following the commencement of a Qualified Offer.  Any Special Meeting Notice must be delivered
to the Secretary of the Company at the principal executive offices of the
Company and must set forth, as to the stockholders of record executing such
Special Meeting Notice, (i) the name and address of such stockholders, as
they appear on the Company’s books and records, (ii) the number of shares
of Common Stock that are owned of record by each of such stockholders and
(iii) in the case of Common Stock that is owned beneficially by another
Person, an executed certification by the holder of record that such holder has
executed such Special Meeting Notice only after obtaining instructions to do so
from such beneficial owner.  Subject to
the requirements of applicable law, the Board may take a position in favor of
or opposed to the adoption of the Redemption Resolution, or no position with
respect to the Redemption Resolution, as it determines to be appropriate in the
exercise of its fiduciary duties.  In the
event that (A) no Person has become an Acquiring Person prior to the
effective date of redemption referred to below in this sentence, (B) the
Qualified Offer continues to be a Qualified Offer prior to the last day of the
Special Meeting Period (the “Outside Meeting Date”) and (C) either
(1) the Special Meeting is not held on or prior to the Outside Meeting
Date or (2) at the Special Meeting at which a quorum is present, the
holders of a majority of the shares of Common Stock outstanding as of the
record date for the Special Meeting selected by the Board (excluding shares of
Common Stock beneficially owned by the Person making the Qualified Offer and
such Person’s Affiliates and Associates) vote in favor of the Redemption
Resolution, then all of the Rights shall be deemed redeemed at the Redemption
Price by such failure to hold the Special Meeting or as a result of the
adoption of the Redemption Resolution by the stockholders of the Company (or
the Board shall take such other action as may be necessary to prevent the
existence of the Rights from interfering with the consummation of the Qualified
Offer), such redemption to be effective, as the case may be, (x) as of the
close of business on the Outside Meeting Date  if
a Special Meeting is not held on or prior to such date or (y) if a Special
Meeting is held on or prior to the Outside Meeting Date, as of the date on
which the results of the vote adopting the Redemption Resolution at the Special
Meeting are certified as official by the appointed inspectors of election for
the Special Meeting.

 

(c)                                  Immediately upon the action of the Board
ordering the redemption of the Rights pursuant to Section 23(a) or
the effectiveness of a redemption of the Rights pursuant to Section 23(b),
in either case, without any further action and without any notice, the right to
exercise the Rights will terminate and each Right will thereafter represent
only the right to receive the Redemption Price. 
The Company shall promptly give public notice of any such redemption
and, within ten (10) days after such action causing a redemption of the
Rights pursuant to Section 23(a) or Section 23(b),
the Company shall mail a notice of redemption to all the holders of the then
outstanding Rights at their last addresses as they appear upon the registry
books of the Rights Agent or, prior to the Distribution Date, on the registry
books of the transfer agent for the Common Stock.  Any notice that is mailed in the manner
herein provided shall be deemed given, whether or not the holder receives the
notice.  Each such notice of redemption
will state the method by which the payment of the Redemption Price will be
made.  Notwithstanding the foregoing, the
failure to give, or any defect in, any notice required to be made or given
pursuant to this Section 23(c) shall not affect the validity
of the redemption of the Rights.

 

37

 

(d)                                 Neither the Company nor any of its
Affiliates or Associates may redeem, acquire or purchase for value any Rights
at any time in any manner other than that specifically set forth in this Section 23
or in Section 24, and other than in connection with the repurchase
of Common Stock prior to the Distribution Date.

 

Section 24.                                      Exchange.

 

(a)                                  The Board may, at its option, at any time
after any Person becomes an Acquiring Person, exchange all or part of the then
outstanding and exercisable Rights (which shall not include Rights that have
become null and void pursuant to the provisions of Section 11(a)(ii))
for shares of Common Stock at an exchange ratio of one share of Common Stock
per Right, appropriately adjusted to reflect any stock split, stock dividend or
similar transaction occurring after the Record Date (such exchange ratio being
hereinafter referred to as the “Exchange Ratio”).  Notwithstanding the foregoing, the Board
shall not be empowered to effect such exchange at any time after any Acquiring
Person, together with all Affiliates and Associates of such Acquiring Person,
becomes the Beneficial Owner of 50% or more of the voting power of the shares
of Common Stock then outstanding.  From and
after the occurrence of an event specified in Section 13(a), any
Rights that theretofore have not been exchanged pursuant to this Section 24(a) shall
thereafter be only exercisable in accordance with Section 13 and
may not be exchanged pursuant to this Section 24(a).  The exchange of the Rights by the Board may
be made effective at such time, on such basis and with such conditions as the
Board in its sole discretion may establish.

 

(b)                                 Immediately upon the effectiveness of the
action of the Board ordering the exchange of any Rights pursuant to Section 24(a) and
without any further action and without any notice, the right to exercise such
Rights shall terminate and the only right thereafter of a holder of such Rights
shall be to receive that number of shares of Common Stock equal to the number of
such Rights held by such holder multiplied by the Exchange Ratio.  The Company shall promptly give public notice
of any such exchange; provided, however, that the failure to
give, or any defect in, such notice shall not affect the validity of such
exchange.  The Company promptly shall
mail a notice of any such exchange by first class mail to all of the holders of
such Rights at their last addresses as they appear upon the registry books of
the Rights Agent.  Any notice that is
mailed in the manner herein provided shall be deemed given, whether or not the
holder receives the notice.  Each such
notice of exchange will state the method by which the exchange of Common Stock
for Rights will be effected and, in the event of any partial exchange, the
number of Rights that will be exchanged. 
Any partial exchange shall be effected pro rata based on the number of
Rights (other than Rights that have become null and void pursuant to the
provisions of Section 11(a)(ii)) held by each holder of Rights.

 

(c)                                  The Company may, at its option,
substitute for a share of Common Stock issuable upon the exchange of Rights in
accordance with Section 24(a) a number of shares of Preferred
Stock (or equivalent preferred stock) or fraction thereof such that the current
market price per share of one share of Preferred Stock (or equivalent preferred
stock) multiplied by such number or fraction is equal to the current market
price per share of Common Stock as of the date of such exchange.  In the event that there shall be insufficient
shares of Common Stock issued but not outstanding or authorized but unissued
(and unreserved) to permit an exchange of Rights in accordance with Section 24(a),
the Company shall substitute, to the extent of such insufficiency, 

 

38

 

for each share of Common Stock that would otherwise be
issuable upon the exchange of Rights in accordance with Section 24(a) a
number of shares of Preferred Stock (or equivalent preferred stock) or fraction
thereof such that the current market price per share of one share of Preferred
Stock (or equivalent preferred stock) multiplied by such number or fraction is
equal to the current market price per share of Common Stock as of the date of
such exchange.

 

Section 25.                                      Notice of Certain Events. 
In case the Company shall propose at any time following the Distribution
Date (a) to pay any dividend payable in stock of any class to the holders
of its Preferred Stock or to make any other distribution to the holders of its
Preferred Stock (other than a regular periodic cash dividend at a rate not in
excess of 125% of the rate of the last cash dividend theretofore paid),
(b) to offer to the holders of its Preferred Stock rights or warrants to
subscribe for or to purchase any additional shares of the Preferred Stock or
shares of stock of any class or any other securities, rights or options,
(c) to effect any reclassification of its Preferred Stock (other than a
reclassification involving only the subdivision or combination of outstanding
Preferred Stock), (d) to effect any consolidation or merger into or with,
or to effect any sale or other transfer (or to permit one or more of its
subsidiaries to effect any sale or other transfer), in one or more
transactions, of more than 50% of the assets or earning power of the Company
and its subsidiaries (taken as a whole) to, any other Person, (e) to
effect the liquidation, dissolution or winding up of the Company or (f) to
declare or pay any dividend on the shares of Common Stock payable in shares of
Common Stock or to effect a subdivision, combination or consolidation of the
shares of Common Stock (by reclassification or otherwise than by payment of
dividends in shares of Common Stock), then, in each such case, the Company
shall give to each holder of a Right Certificate and the Rights Agent, in
accordance with Section 26, a notice of such proposed action, which
shall specify the record date for the purposes of such stock dividend,
distribution of rights or warrants, or the date on which such reclassification,
consolidation, merger, sale, transfer, liquidation, dissolution, or winding up
is to take place and the date of participation therein by the holders of the
Common Stock and/or the Preferred Stock, if any such date is to be fixed, and
such notice shall be so given in the case of any action covered by clause
(a) or (b) above at least ten (10) days prior to the record date
for determining holders of the Preferred Stock for purposes of such action, and
in the case of any such other action, at least ten (10) days prior to the
date of the taking of such proposed action or the date of participation therein
by the holders of the Common Stock and/or the Preferred Stock, whichever shall
be the earlier.  In case the event set
forth in Section 11(a)(ii) or Section 13 shall
occur, then the Company shall as soon as practicable thereafter give to each
holder of a Right, in accordance with Section 26, a notice of the
occurrence of such event, which shall specify the event and the consequences of
the event to holders of Rights under Section 11(a)(ii) or Section 13,
as applicable.

 

Section 26.                                      Notices.  Notices or
demands authorized by this Agreement to be given or made by the Rights Agent or
by the holder of any Right Certificate to or on the Company shall be
sufficiently given or made if sent by overnight delivery service or first class
mail, postage prepaid, addressed (until another address is filed in writing by
the Company with the Rights Agent) as follows:

 

39

 

SuperMedia Inc.

2200 West Airfield
Drive

D/FW Airport,
Texas 75261

Attention:  Corporate Secretary

 

Subject
to the provisions of Section 21, any notice or demand authorized by
this Agreement to be given or made by the Company or by the holder of any Right
Certificate to or on the Rights Agent shall be sufficiently given or made if
sent by overnight delivery service or first class mail, postage prepaid,
addressed (until another address is filed in writing with the Company) as
follows:

 

Mellon Investor
Services LLC

600 N. Pearl
Street

Suite 1010

Dallas, TX  75201

 

with a copy to:

 

Mellon Investor
Services LLC

Newport Office
Center VII

480 Washington
Blvd.

Jersey City, NJ
07310

Attention:  Legal Department

 

Notices or demands authorized by this Agreement to
be given or made by the Company or the Rights Agent to the holder of any Right
Certificate shall be sufficiently given or made if sent by overnight delivery
service or first class mail, postage prepaid, addressed to such holder at the
address of such holder as shown on the registry books of the Company.

 

Section 27.                                      Supplements and Amendments. 
Except as otherwise provided in this Section 27, for so long
as the Rights are then redeemable, the Company may from time to time in its
sole and absolute discretion, and the Rights Agent shall if the Company so
directs, supplement or amend any provision of this Agreement in any respect
without the approval of any holders of the Rights.  At any time when the Rights are no longer
redeemable, except as otherwise provided in this Section 27, the
Company (by action of the Board) may, and the Rights Agent shall, if the
Company so directs, supplement or amend this Agreement without the approval of
any holders of Rights in order to (a) cure any ambiguity, (b) correct
or supplement any provision contained herein that may be defective or
inconsistent with any other provisions herein, (c) shorten or lengthen any
time period hereunder or (d) change or supplement the provisions hereunder
in any manner that the Company may deem necessary or desirable; provided,
however, that at any time when the Rights are no longer redeemable, this
Agreement shall not be supplemented or amended in any manner that would
adversely affect the interests of the holders of Rights (which shall not
include Rights that have become null and void pursuant to the provisions of Section 11(a)(ii))
as such, cause this Agreement to become amendable other than in accordance with
this Section 27 or cause the Rights to again become
redeemable.  Upon the delivery of a
certificate from an appropriate officer of the Company that states that the
proposed supplement or amendment is in compliance with the terms of this Section 27,
the 

 

40

 

Rights Agent shall execute such supplement or
amendment; provided that such supplement or amendment does not adversely affect
the rights, duties or obligations of the Rights Agent under this Agreement.

 

Notwithstanding anything contained in this Agreement
to the contrary, the Rights Agent may, but shall not be obligated to, enter
into any supplement or amendment that affects the Rights Agent’s own rights,
duties, obligations or immunities under this Agreement.

 

Notwithstanding anything contained in this Agreement
to the contrary, no amendment to Section 1(t), and no other supplement
or amendment to this Agreement that specifically relates to one or more
Grandfathered Persons, may be effected without the approval of a majority of
the members of the Special Independent Committee.

 

Section 28.                                      Successors.  All the
covenants and provisions of this Agreement by or for the benefit of the Company
or the Rights Agent shall bind and inure to the benefit of their respective
successors and assigns hereunder.

 

Section 29.                                      Benefits of this Agreement. 
Nothing in this Agreement shall be construed to give to any Person other
than the Company, the Rights Agent and the registered holders of the Right
Certificates (and, prior to the Distribution Date, the registered holders of
the Common Stock) any legal or equitable right, remedy or claim under this
Agreement; but this Agreement shall be for the sole and exclusive benefit of
the Company, the Rights Agent and the registered holders of the Right
Certificates (and, prior to the Distribution Date, the registered holders of
the Common Stock).  Notwithstanding
anything to the contrary set forth in this Agreement, Paulson shall be an
intended third party beneficiary with respect to Section 1(t).

 

Section 30.                                      Determinations and Actions by the Board. 
The Board shall have the exclusive power and authority to administer
this Agreement and to exercise the rights and powers specifically granted to
the Board or to the Company, or as may be necessary or advisable in the
administration of this Agreement, including, without limitation, the right and
power to (a) interpret the provisions of this Agreement and (b) make
all determinations deemed necessary or advisable for the administration of this
Agreement (including, without limitation, a determination to redeem or not
redeem the Rights, to exchange or not exchange the Rights, or to amend this
Agreement).  All such actions,
calculations, interpretations and determinations (including, for purposes of
clause (y) below, all omissions with respect to the foregoing) that are
done or made by the Board in good faith, shall (x) be final, conclusive
and binding on the Company, the Rights Agent, the holders of the Rights, as
such, and all other Persons and (y) not subject the Board to any liability
to the holders of the Rights or any other Person.  The Rights Agent is entitled always to assume
the Company’s Board of Directors acted in good faith and shall be fully
protected and incur no liability in reliance thereon.

 

Section 31.                                      Severability.  If any term,
provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction or other authority to be invalid, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions of this
Agreement shall remain in full force and effect and shall in no way be
affected, impaired or invalidated; provided, however, that, if
such excluded provision shall affect the rights, immunities, duties or
obligations of the Rights Agent hereunder, the Rights Agent shall be 

 

41

 

entitled to resign immediately; and provided  further,
that, notwithstanding anything in this Agreement to the contrary, if any such
term, provision, covenant or restriction is held by such court or authority to
be invalid, void or unenforceable and the Board determines in its good faith
judgment that severing the invalid language from this Agreement would adversely
affect the purpose or effect of this Agreement, the right of redemption set
forth in Section 23 shall be reinstated (with prompt notice to the
Rights Agent) and shall not expire until the close of business on the tenth (10th) Business Day following the date of such
determination by the Board.  Without
limiting the foregoing, if any provision requiring a specific group of
directors of the Company to act is held by any court of competent jurisdiction
or other governmental or judicial authority to be invalid, void or
unenforceable, such determination shall then be made by the full Board in
accordance with applicable law and the Company’s Amended and Restated
Certificate of Incorporation and Amended and Restated By-laws (as each may be
amended from time to time).

 

Section 32.                                      Governing Law.  This
Agreement and each Right Certificate issued hereunder shall be deemed to be a
contract made under the laws of the State of Delaware and for all purposes
shall be governed by and construed in accordance with the laws of such state
applicable to contracts to be made and performed entirely within such state; provided,
however, that with respect solely to matters regarding the rights and
obligations of the Rights Agent hereunder, the laws of the State of New York
shall govern without regard to its conflict of laws principles.

 

Section 33.                                      Descriptive Headings; References; Calculation of Time
Periods.  Descriptive headings of the several sections
of this Agreement are inserted for convenience only and shall not control or
affect the meaning or construction of any of the provisions hereof.  Except as otherwise specifically provided,
any reference to any section or exhibit will be deemed to refer to such section
of or exhibit to this Agreement.  Each
reference in this Agreement to a period of time following or after a specified
date or event shall be calculated without including such specified date or the
day on which such specified event occurs.

 

Section 34.                                      Counterparts.  This
Agreement may be executed in any number of counterparts and each of such
counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument.

 

Section 35.                                      Force Majeure. 
Notwithstanding anything to the contrary contained herein, the Rights
Agent shall not be liable for any delays or failures in performance resulting
from acts beyond its reasonable control including, without limitation, acts of
God, terrorist acts, shortage of supply, breakdowns or malfunctions,
interruptions or malfunction of computer facilities, or loss of data due to
power failures or mechanical difficulties with information storage or retrieval
systems, labor difficulties, war, or civil unrest.

 

{Remainder
of Page Left Intentionally Blank}

 

42

 

IN
WITNESS WHEREOF, the parties hereto have caused this Rights Agreement to be
duly executed and their respective seals to be hereunto affixed and attested,
all as of the day and year first above written.

 

	
  Attest:

  	
   

  	
  SUPERMEDIA
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Tara D. Mackey

  	
   

  	
  By:

  	
  /s/
  Cody Wilbanks

  
	
  Name:

  	
  Tara
  D. Mackey

  	
   

  	
  Name:

  	
  Cody Wilbanks

  
	
  Title:

  	
  Vice
  President-Associate General 

  	
   

  	
  Title:

  	
  Executive Vice President-General
  

  
	
   

  	
  Counsel and Assistant
  Secretary

  	
   

  	
   

  	
  Counsel and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MELLON
  INVESTOR SERVICES LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Patricia Hodson

  
	
   

  	
   

  	
  Name:

  	
  Patricia Hodson

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

43

 

Exhibit A

 

Form of
Certificate of Designations of Series A Junior Participating Preferred
Stock of SuperMedia Inc.

 

{See Attached}

 

 

Exhibit B

 

Form of Right Certificate
 

	Certificate No. R-
	 
	Rights

 
NOT EXERCISABLE AFTER MARCH 25, 2013 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS.  THE RIGHTS ARE SUBJECT, AT THE OPTION OF THE COMPANY, TO REDEMPTION AT $0.001 PER RIGHT OR TO EXCHANGE, ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.  UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS BENEFICIALLY OWNED BY ACQUIRING PERSONS AND THEIR AFFILIATES AND ASSOCIATES (AS SUCH TERMS ARE DEFINED IN SECTION 1 OF THE RIGHTS AGREEMENT) OR ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND VOID.
 

Right Certificate

 

SUPERMEDIA INC.

 

This
certifies that
                                      
or registered assigns, is the registered owner of the number of Rights set
forth above, each of which entitles the owner thereof, subject to the terms,
provisions and conditions of the Rights Agreement dated as of March 3,
2010  (the “Rights
Agreement”) between SUPERMEDIA INC., a Delaware corporation (the “Company”), and
MELLON INVESTOR SERVICES LLC, a New Jersey limited liability company
(the “Rights Agent”), to purchase from the Company at any time
after the Distribution Date (as such term is defined in the Rights Agreement)
and prior to the close of business (as such term is defined in the Rights
Agreement) on March 25, 2013 at the office of the Rights Agent, or its
successors as Rights Agent, designated for such purposes, one one-thousandth of
one fully paid and non-assessable share of the Series A Junior
Participating Preferred Stock (the “Preferred Stock”) of the Company, at
a purchase price of $150.00  per one
one-thousandth of one share (the “Purchase Price”), upon presentation
and surrender of this Right Certificate with the Form of Election to
Purchase duly executed.  The number of
Rights evidenced by this Right Certificate (and the number of one
one-thousandths of a share of Preferred Stock that may be purchased upon
exercise thereof) set forth above, and the Purchase Price per share set forth
above, are the number and Purchase Price as of March 3, 2010, based on the
shares of the Preferred Stock of the Company as constituted at such date.

 

As
provided in the Rights Agreement, the Purchase Price, the number and kind or
class of shares of stock of the Company that may be purchased upon the exercise
of the Rights evidenced by this Right Certificate are subject to modification
and adjustment upon the happening of certain events.

 

1

 

This
Right Certificate is subject to all of the terms, provisions and conditions of
the Rights Agreement, which terms, provisions and conditions are hereby
incorporated herein by reference and made a part hereof and to which Rights
Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Right Certificates.  Copies of the Rights Agreement are on file at
the principal executive offices of the Company and the office of the Rights
Agent.

 

This
Right Certificate, with or without other Right Certificates, upon surrender at
the office of the Rights Agent designated for such purposes, may be exchanged
for another Right Certificate or Right Certificates of like tenor and date
evidencing Rights entitling the holder to purchase a like aggregate number of
shares of the Preferred Stock as the Rights evidenced by the Right Certificate
or Right Certificates surrendered shall have entitled such holder to purchase.

 

If
this Right Certificate shall be exercised in part, the holder shall be entitled
to receive upon surrender hereof another Right Certificate or Right Certificates
for the number of whole Rights not exercised.

 

Subject
to the provisions of the Rights Agreement, the Rights evidenced by this
Certificate may, but are not required to, be (i) redeemed by the Company
at its option at a redemption price of $0.001 per Right or (ii) exchanged
by the Company in whole or in part for shares of Preferred Stock or Common
Stock, par value $0.01 per share, of the Company.

 

No
fractional shares of the Preferred Stock or Common Stock will be issued upon
the exercise of any Right or Rights evidenced hereby (other than fractions that
are integral multiples of one one-thousandth of one share of Preferred Stock,
which may, at the election of the Company, be evidenced by depositary
receipts), but in lieu thereof a cash payment will be made as provided in the
Rights Agreement.

 

No
holder of this Right Certificate shall be entitled to vote or receive dividends
or be deemed for any purpose the holder of the Preferred Stock or of any other
securities of the Company that may at any time be issuable on the exercise
hereof, nor shall anything contained in the Rights Agreement or herein be
construed to confer upon the holder hereof, as such, any of the rights of a
stockholder of the Company or any right to vote for the election of directors
or upon any matter submitted to stockholders at any meeting thereof, or to
receive notice of meetings or other actions affecting stockholders (except as
provided in the Rights Agreement), or to receive dividends or subscription
rights, or otherwise, until the Right or Rights evidenced by this Right
Certificate shall have been exercised as provided in the Rights Agreement.

 

This
Right Certificate shall not be valid or obligatory for any purpose until it
shall have been countersigned by the Rights Agent.

 

2

 

WITNESS the facsimile signature of the proper
officers of the Company and its corporate seal.

 

	
  Dated as of     ,
  20   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
  SUPERMEDIA
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Countersigned:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MELLON INVESTOR SERVICES LLC,

  	
   

  	
   

  
	
  as Rights Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized
  Signature

  	
   

  	
   

  
						

 

3

 

[Form of Reverse Side of Right Certificate]

 

FORM OF ASSIGNMENT

 

(To be executed by
the registered holder if such holder desires to transfer the Right Certificate)

 

	
  FOR VALUE RECEIVED
                                                                                          
  hereby

  
	
   

  
	
  sells, assigns and
  transfers unto

  
	
   

  
	
   

  
	
  (Please print
  name and address of transferee)

  
	
  this Right Certificate, together with all right,
  title and interest therein, and does hereby irrevocably constitute and
  appoint
                                                                
  Attorney, to transfer the within Right Certificate on the books of the
  within-named Company, with full power of substitution.

  

 

Dated: 
                              
      , 20

 

	
   

  	
   

  
	
   

  	
  Signature

  

 

(Signature
must conform in all respects to the name of holder as written upon the face of
this Right Certificate, without alteration or enlargement or any change
whatsoever.)

 

	
  Signature Guaranteed:

  
	
   

  
	
  Signatures must be
  guaranteed by an “eligible guarantor institution” as defined in
  Rule 17Ad-15 promulgated under the Securities Exchange Act of 1934, as
  amended.

  
	
   

  
	
   

  
	
  (to be completed
  if applicable)

  

 

The
undersigned hereby certifies that the Rights evidenced by this Right
Certificate are not beneficially owned by an Acquiring Person or an Affiliate
or Associate thereof (as defined in the Rights Agreement).

 

	
   

  	
   

  
	
   

  	
  Signature

  

 

4

 

FORM OF ELECTION TO PURCHASE

 

(To be executed by
the registered holder if such holder desires to exercise the Right Certificate)

 

	
  TO: SUPERMEDIA
  INC.

  
	
   

  
	
  The undersigned hereby
  irrevocably elects to exercise
                                                  
  Rights represented by this Right Certificate to purchase the shares of the
  Preferred Stock issuable upon the exercise of such Rights and requests that
  certificates for such shares be issued in the name of:

  
	
   

  
	
  [Please insert social
  security or other identifying number]

  	
   

  
	
   

  
	
   

  
	
  (Please print
  name and address)

  
	
   

  
	
  If such number of
  Rights shall not be all the Rights evidenced by this Right Certificate, a new
  Right Certificate for the balance remaining of such Rights shall be
  registered in the name of and delivered to:

  
	
   

  
	
  [Please insert social
  security or other identifying number]

  	
   

  
	
   

  
	
   

  
	
  (Please print
  name and address)

  
	
   

  
	
  Dated:
                                
        , 20

  
	
   

  	
   

  
	
   

  	
  Signature

  
				

 

(Signature
must conform in all respects to the name of holder as written upon the face of
this Right Certificate, without alteration or enlargement or any change
whatsoever.)

 

 

Signature Guaranteed:

 

	
  Signatures must be
  guaranteed by an “eligible guarantor institution” as defined in
  Rule 17Ad-15 promulgated under the Securities Exchange Act of 1934, as
  amended.

  
	
   

  
	
   

  
	
  (to be completed
  if applicable)

  
	
   

  
	
  The undersigned hereby certifies that the Rights
  evidenced by this Right Certificate are not beneficially owned by an
  Acquiring Person or an Affiliate or Associate thereof (as defined in the
  Rights Agreement).

  

 

	
   

  	
   

  
	
   

  	
  Signature

  

 

5

 

Exhibit C

 

SUPERMEDIA INC.

 

SUMMARY OF RIGHTS
TO PURCHASE PREFERRED STOCK

 

The Board of Directors of
SUPERMEDIA INC., formerly known as Idearc Inc. (the “Company”) declared a
dividend distribution of one preferred stock purchase right (a “Right”)
for each outstanding share of common stock, $0.01 par value, of the Company (the “Common
Stock”).  The distribution is payable
at 5:00 p.m., New York City time, on March 25, 2010 to the stockholders of record
at 5:00 p.m., New York City time, on March 25, 2010 (the “Record Date”).  Each Right entitles the registered holder to
purchase from the Company one one-thousandth of a share of the Company’s
Series A Junior Participating Preferred Stock (the “Preferred Stock”)
at a price of $150.00 per one one-thousandth of a share of Preferred Stock (the
“Purchase Price”), subject to adjustment.  The description and terms of the Rights are
set forth in a Rights Agreement dated March 3, 2010 (the “Rights
Agreement”), between the Company and Mellon Investor Services LLC, as
Rights Agent (the “Rights Agent”).

 

A copy of the Rights
Agreement has been filed with the Securities and Exchange Commission as an
Exhibit to a Registration Statement on Form 8-A dated March 3,
2010.  Copies of the Rights Agreement are
available free of charge from the Rights Agent, Mellon Investor Services
LLC.  The following summary description
of the Rights does not purport to be complete and is qualified in its entirety
by reference to the Rights Agreement, which is hereby incorporated herein by
reference.

 

Until the close of
business on the Distribution Date, the Rights will be evidenced, with respect
to any of the Common Stock certificates outstanding as of the Record Date, by
such Common Stock certificate with a copy of this Summary of Rights.  The “Distribution Date” will be the
earlier to occur of (i) the tenth (10th)
day following a public announcement that a person or group of affiliated or
associated persons (an “Acquiring Person”) has acquired beneficial
ownership (which includes for this purpose stock referenced in derivative
transactions and securities) of 20% or more of the outstanding shares of the
Common Stock (the “Shares Acquisition Date”) or (ii) the tenth (10th) business day (or such later date as may be
determined by action of the Board of Directors prior to such time as any person
or group of affiliated or associated persons becomes an Acquiring Person) after
the commencement of, or announcement of an intention to commence, a tender
offer or exchange offer the consummation that would result in any person
becoming an Acquiring Person.  The
several investment funds and accounts managed by Paulson & Co. Inc.,
together with any affiliates thereof (collectively, “Paulson”) will not
be deemed to be an “Acquiring Person” so long as Paulson does not beneficially
own more than a specified percentage of the outstanding shares of the Common
Stock (which percentage will in no event exceed 45%) and meets certain other
conditions specified in the Rights Agreement.

 

The Rights Agreement
provides that, until the Distribution Date (or earlier redemption or expiration
of the Rights), the Rights will be transferable only in connection with the
transfer of the Common Stock.  Until the
Distribution Date (or earlier redemption or expiration of the Rights), new
Common Stock certificates issued after the Record Date, upon transfer or new 

 

1

 

issuance of the Common
Stock, will contain a notation incorporating the Rights Agreement by
reference.  Until the Distribution Date
(or earlier redemption or expiration of the Rights), the surrender for transfer
of any of the Common Stock certificates outstanding as of the Record Date, even
without a copy of this Summary of Rights, will also constitute the transfer of
the Rights associated with the Common Stock represented by such
certificate.  As soon as practicable
following the Distribution Date, separate certificates evidencing the Rights (“Right
Certificates”) will be mailed to holders of record of the Common Stock as
of the close of business on the Distribution Date and such separate Right
Certificates alone will evidence the Rights.

 

The Rights are not
exercisable until the Distribution Date. 
The Rights will expire on the earlier of (i) March 25, 2013
and (ii) March 25, 2011, if and only if Stockholder Approval has not
been obtained on or prior to such date (as applicable, the “Expiration Date”),
unless the Expiration Date is extended or unless earlier redeemed or exchanged
by the Company, in each case as described below.

 

Each share of Preferred
Stock purchasable upon exercise of the Rights will have a preferential
quarterly dividend rate equal to the greater of $1.00  per share and 1,000 times the dividend
declared on one share of the Common Stock. 
In the event of liquidation, the holders of the Preferred Stock will
receive a preferential liquidation payment of $1,000 per share plus accrued and
unpaid dividends thereon, but will be entitled to receive an aggregate
liquidation payment equal to 1,000 times the payment made on one share of
Common Stock.

 

Each share of Preferred
Stock will have 1,000 votes voting together with the Common Stock.  Finally, in the event of any merger, consolidation
or other transaction in which shares of Common Stock are exchanged, each share
of Preferred Stock will be entitled to receive 1,000 times the amount received
per one share of Common Stock.  The
Rights are protected by customary anti-dilution provisions.  Because of the nature of the Preferred Stock
dividend, liquidation and voting rights, the value of the one one-thousandth
interest in a share of Preferred Stock purchasable upon exercise of each Right
should approximate the value of one share of Common Stock.

 

The Purchase Price
payable, and the number of shares of the Preferred Stock or other securities or
property issuable, upon exercise of the Rights are subject to adjustment from
time to time to prevent dilution (i) in the event of a stock dividend on,
or a subdivision, combination or reclassification of the Preferred Stock,
(ii) upon the grant to holders of the Preferred Stock of certain rights or
warrants to subscribe for shares of the Preferred Stock or convertible
securities at less than the current market price of the Preferred Stock or
(iii) upon the distribution to holders of the Preferred Stock of evidences
of indebtedness or assets (excluding regular periodic cash dividends out of
earnings or retained earnings at a rate not in excess of 125% of the rate of
the last cash dividend theretofore paid or dividends payable in the Preferred
Stock) or of subscription rights or warrants (other than those referred to
above).

 

The number of outstanding
Rights and the number of one one-thousandths of a share of Preferred Stock
issuable upon exercise of each Right are also subject to adjustment in the
event of a stock split of the Common Stock or a stock dividend on the Common
Stock payable in 

 

2

 

shares of Common Stock or
subdivisions, consolidations or combinations of the Common Stock occurring, in
any such case, prior to the Distribution Date.

 

In the event that the
Company is acquired in a merger or other business combination transaction or
50% or more of its assets or earning power are sold after a person or group has
become an Acquiring Person, proper provision will be made so that each holder
of a Right will thereafter have the right to receive, upon the exercise thereof
at the Purchase Price, that number of shares of the senior voting stock of the
acquiring company that at the time of such transaction would have a market
value of two times the Purchase Price. 
In the event that any person or group of affiliated or associated
persons becomes an Acquiring Person, proper provision will be made so that each
holder of a Right, other than Rights that were or are beneficially owned by the
Acquiring Person (which will thereafter be null and void), will thereafter have
the right to receive upon exercise that number of shares of the Common Stock
having a market value of two times the Purchase Price.

 

With certain exceptions,
no adjustment in the Purchase Price will be required until cumulative
adjustments require an adjustment of at least 1% in such Purchase Price.  No fractional shares of Preferred Stock or
Common Stock will be issued (other than fractions that are integral multiples
of one one-thousandth of a share of Preferred Stock, which may, at the election
of the Company, be evidenced by depositary receipts) and, in lieu thereof, an
adjustment in cash will be made based on the market price of the Preferred
Stock or Common Stock, as applicable, on the last trading date prior to the
date of exercise.

 

At any time after any
person or group becomes an Acquiring Person and prior to the acquisition by
such person or group of 50% or more of the outstanding shares of Common Stock,
the Board may exchange the Rights (other than Rights owned by such person or
group that will have become null and void) in whole or in part, at an exchange
ratio of one share of Common Stock (or, if there is an insufficient number of
issued but not outstanding or authorized but unissued shares of Common Stock to
permit such exchange, then one one-thousandth of a Preferred Share) per Right (subject
to adjustment).

 

At any time prior to
5:00 p.m., New York City time, on the earlier of (i) the Shares
Acquisition Date and (ii) the Expiration Date, the Board may redeem the
Rights in whole, but not in part, at a price of $0.001 per Right (the “Redemption
Price”).  In addition, if a Qualified
Offer (as described below) is made, the record holders of 10% or more of the
outstanding shares of Common Stock may direct the Board to call a special
meeting of stockholders to consider a resolution authorizing a redemption of
all Rights.  If the special meeting is
not held within ninety (90) days of being called or if, at the special meeting,
the holders of a majority of the shares of Common Stock outstanding (other than
shares held by the offeror and its affiliated and associated persons) vote in
favor of the redemption of the Rights, then the Board will redeem the Rights or
take such other action as may be necessary to prevent the Rights from
interfering with the consummation of the Qualified Offer.

 

A Qualified Offer is an
offer determined by a majority of the independent directors on the Board to be
a fully financed offer for all outstanding shares of Common Stock at a per
share offer price that exceeds the greatest of certain price thresholds
specified in the Rights Agreement and that the Board, upon the advice of a
nationally recognized investment banking firm, does not 

 

3

 

deem to be either unfair
or inadequate.  A Qualified Offer is
conditioned upon a minimum of at least two-thirds of the outstanding shares of
Common Stock not held by the offeror (and its affiliated and associated
persons) being tendered and not withdrawn, with a commitment to acquire all
shares of Common Stock not tendered for the same consideration.  If the Qualified Offer includes non-cash
consideration, such consideration must consist solely of freely-tradeable
common stock of a publicly traded company, and the board and its
representatives must be given access to conduct a due diligence review of the
offeror to determine whether the consideration is fair and adequate.  A Qualified Offer must also remain open for
at least one hundred twenty (120) days following commencement.

 

Immediately upon the
action of the Board to redeem or exchange the Rights, the Company shall make
announcement thereof, and upon such action, the right to exercise the Rights
will terminate and the only right of the holders of Rights will be to receive
the Redemption Price, or the shares of Common Stock or Preferred Stock
exchangeable for the Rights, as applicable.

 

Until a Right is
exercised, the holder thereof, as such, will have no rights as a stockholder of
the Company, including, without limitation, the right to vote or to receive
dividends.

 

4EXHIBIT
10.36

 

	
   

  

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

dated as of

March 1, 2010

 

among

 

AFFINITY GROUP, INC.

THE GUARANTORS PARTY HERETO

THE LENDERS PARTY HERETO

 

and

 

WILMINGTON TRUST FSB,

as Administrative Agent

 

	
   

  

 

 

TABLE OF
CONTENTS

 

	
  ARTICLE I

  	
  DEFINITIONS

  	
  2

  
	
   

  	
   

  
	
  1.1

  	
  Defined Terms

  	
  2

  
	
   

  	
   

  	
   

  
	
  1.2

  	
  Classification of Loans
  and Borrowings

  	
  7

  
	
   

  	
   

  	
   

  
	
  1.3

  	
  Terms Generally

  	
  7

  
	
   

  	
   

  	
   

  
	
  1.4

  	
  Accounting Terms; GAAP

  	
  7

  
	
   

  	
   

  
	
  ARTICLE II

  	
  THE CREDITS

  	
  28

  
	
   

  	
   

  
	
  2.1

  	
  Commitments

  	
  28

  
	
   

  	
   

  	
   

  
	
  2.2

  	
  Loans

  	
  28

  
	
   

  	
   

  	
   

  
	
  2.3

  	
  [Reserved]

  	
  28

  
	
   

  	
   

  	
   

  
	
  2.4

  	
  [Reserved]

  	
  28

  
	
   

  	
   

  	
   

  
	
  2.5

  	
  Funding of Borrowings

  	
  28

  
	
   

  	
   

  	
   

  
	
  2.6

  	
  Interest Elections

  	
  29

  
	
   

  	
   

  	
   

  
	
  2.7

  	
  Termination of
  Commitments

  	
  29

  
	
   

  	
   

  	
   

  
	
  2.8

  	
  [Reserved]

  	
  30

  
	
   

  	
   

  	
   

  
	
  2.9

  	
  Repayment of Loans;
  Evidence of Debt

  	
  30

  
	
   

  	
   

  	
   

  
	
  2.10

  	
  Prepayment of Loans

  	
  31

  
	
   

  	
   

  	
   

  
	
  2.11

  	
  Fees

  	
  34

  
	
   

  	
   

  	
   

  
	
  2.12

  	
  Interest

  	
  34

  
	
   

  	
   

  	
   

  
	
  2.13

  	
  Alternate Rate of
  Interest

  	
  35

  
	
   

  	
   

  	
   

  
	
  2.14

  	
  Increased Costs

  	
  36

  
	
   

  	
   

  	
   

  
	
  2.15

  	
  Break Funding Payments

  	
  36

  
	
   

  	
   

  	
   

  
	
  2.16

  	
  Taxes

  	
  37

  
	
   

  	
   

  	
   

  
	
  2.17

  	
  Payments Generally: Pro
  Rata Treatment; Sharing of Set-Offs

  	
  38

  
	
   

  	
   

  	
   

  
	
  2.18

  	
  Mitigation Obligations;
  Replacement of Lenders

  	
  40

  
	
   

  	
   

  
	
  ARTICLE III

  	
  GUARANTEE BY GUARANTORS

  	
  40

  
	
   

  	
   

  
	
  3.1

  	
  The Guarantee

  	
  40

  
	
   

  	
   

  	
   

  
	
  3.2

  	
  Obligations
  Unconditional

  	
  41

  
	
   

  	
   

  	
   

  
	
  3.3

  	
  Reinstatement

  	
  41

  
	
   

  	
   

  	
   

  
	
  3.4

  	
  Subrogation

  	
  42

  
	
   

  	
   

  	
   

  
	
  3.5

  	
  Remedies

  	
  42

  
				

 

i

 

	
  3.6

  	
  Instrument for the
  Payment of Money

  	
  42

  
	
   

  	
   

  	
   

  
	
  3.7

  	
  Continuing Guarantee

  	
  42

  
	
   

  	
   

  	
   

  
	
  3.8

  	
  Rights of Contribution

  	
  42

  
	
   

  	
   

  	
   

  
	
  3.9

  	
  General Limitation on
  Guarantee Obligations

  	
  43

  
	
   

  	
   

  
	
  ARTICLE IV

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
  43

  
	
   

  	
   

  
	
  4.1

  	
  Organization; Powers

  	
  43

  
	
   

  	
   

  	
   

  
	
  4.2

  	
  Authorization; Enforceability

  	
  43

  
	
   

  	
   

  	
   

  
	
  4.3

  	
  Governmental Approvals;
  No Conflicts

  	
  44

  
	
   

  	
   

  	
   

  
	
  4.4

  	
  Financial Condition; No
  Material Adverse Change

  	
  44

  
	
   

  	
   

  	
   

  
	
  4.5

  	
  Properties

  	
  45

  
	
   

  	
   

  	
   

  
	
  4.6

  	
  Litigation and
  Environmental Matters

  	
  46

  
	
   

  	
   

  	
   

  
	
  4.7

  	
  Compliance with Laws
  and Agreements

  	
  46

  
	
   

  	
   

  	
   

  
	
  4.8

  	
  Investment and Holding
  Company Status

  	
  46

  
	
   

  	
   

  	
   

  
	
  4.9

  	
  Taxes

  	
  46

  
	
   

  	
   

  	
   

  
	
  4.10

  	
  ERISA

  	
  47

  
	
   

  	
   

  	
   

  
	
  4.11

  	
  Disclosure

  	
  47

  
	
   

  	
   

  	
   

  
	
  4.12

  	
  Capitalization

  	
  47

  
	
   

  	
   

  	
   

  
	
  4.13

  	
  Subsidiaries

  	
  48

  
	
   

  	
   

  	
   

  
	
  4.14

  	
  Material Indebtedness,
  Liens and Agreements

  	
  48

  
	
   

  	
   

  	
   

  
	
  4.15

  	
  Holding Company Notes
  Indenture

  	
  49

  
	
   

  	
   

  	
   

  
	
  4.16

  	
  Compliance with
  Regulations T, U and X

  	
  49

  
	
   

  	
   

  	
   

  
	
  4.17

  	
  Burdensome Restrictions

  	
  49

  
	
   

  	
   

  	
   

  
	
  4.18

  	
  Force Majeure

  	
  49

  
	
   

  	
   

  	
   

  
	
  4.19

  	
  Labor and Employment
  Matters

  	
  50

  
	
   

  	
   

  	
   

  
	
  4.20

  	
  Senior Indebtedness

  	
  50

  
	
   

  	
   

  	
   

  
	
  4.21

  	
  Collateral Documents

  	
  50

  
	
   

  	
   

  	
   

  
	
  4.22

  	
  Insurance Policies

  	
  51

  
	
   

  	
   

  	
   

  
	
  4.23

  	
  Solvency

  	
  51

  
	
   

  	
   

  	
   

  
	
  4.24

  	
  Broker’s or Finder’s
  Commissions 

  	
  51

  
	
   

  	
   

  	
   

  
	
  4.25

  	
  OSHA

  	
  51

  
	
   

  	
   

  	
   

  
	
  4.26

  	
  Anti-Terrorism Laws

  	
  52

  
				

 

ii

 

	
  ARTICLE V

  	
  CONDITIONS

  	
  53

  
	
   

  	
   

  
	
  5.1

  	
  Effective Date

  	
  53

  
	
   

  	
   

  	
   

  
	
  5.2

  	
  [Reserved]

  	
  61

  
	
   

  	
   

  	
   

  
	
  5.3

  	
  Extension of Credit

  	
  61

  
	
   

  	
   

  
	
  ARTICLE VI

  	
  AFFIRMATIVE COVENANTS

  	
  61

  
	
   

  	
   

  
	
  6.1

  	
  Financial Statements
  and Other Information

  	
  61

  
	
   

  	
   

  	
   

  
	
  6.2

  	
  Notices of Material
  Events

  	
  64

  
	
   

  	
   

  	
   

  
	
  6.3

  	
  Existence; Conduct of
  Business

  	
  65

  
	
   

  	
   

  	
   

  
	
  6.4

  	
  Payment of Obligations

  	
  65

  
	
   

  	
   

  	
   

  
	
  6.5

  	
  Maintenance of
  Properties; Insurance

  	
  65

  
	
   

  	
   

  	
   

  
	
  6.6

  	
  Books and Records;
  Inspection Rights

  	
  66

  
	
   

  	
   

  	
   

  
	
  6.7

  	
  Fiscal Year

  	
  66

  
	
   

  	
   

  	
   

  
	
  6.8

  	
  Compliance with Laws

  	
  66

  
	
   

  	
   

  	
   

  
	
  6.9

  	
  Use of Proceeds

  	
  66

  
	
   

  	
   

  	
   

  
	
  6.10

  	
  Certain Obligations
  Respecting Subsidiaries and Collateral Security

  	
  67

  
	
   

  	
   

  	
   

  
	
  6.11

  	
  ERISA

  	
  68

  
	
   

  	
   

  	
   

  
	
  6.12

  	
  Environmental Matters;
  Reporting

  	
  68

  
	
   

  	
   

  	
   

  
	
  6.13

  	
  Conforming Leasehold
  Interests; Matters Relating to Additional Real Property Collateral

  	
  68

  
	
   

  	
   

  	
   

  
	
  6.14

  	
  Board Observation
  Rights

  	
  70

  
	
   

  	
   

  	
   

  
	
  6.15

  	
  Chief Restructuring
  Officer

  	
  71

  
	
   

  	
   

  	
   

  
	
  6.16

  	
  Post-Closing Deliverables

  	
  71

  
	
   

  	
   

  	
   

  
	
  6.17

  	
  Subordination by Credit
  Parties

  	
  72

  
	
   

  	
   

  	
   

  
	
  6.18

  	
  Camping World Facility
  Documents

  	
  72

  
	
   

  	
   

  
	
  ARTICLE VII

  	
  NEGATIVE COVENANTS

  	
  72

  
	
   

  	
   

  
	
  7.1

  	
  Indebtedness

  	
  72

  
	
   

  	
   

  	
   

  
	
  7.2

  	
  Liens

  	
  73

  
	
   

  	
   

  	
   

  
	
  7.3

  	
  Contingent Liabilities

  	
  74

  
	
   

  	
   

  	
   

  
	
  7.4

  	
  Fundamental Changes

  	
  75

  
	
   

  	
   

  	
   

  
	
  7.5

  	
  Investments; Hedging
  Agreements

  	
  75

  
	
   

  	
   

  	
   

  
	
  7.6

  	
  Restricted Junior
  Payments and Cash Flow Distributions

  	
  77

  
	
   

  	
   

  	
   

  
	
  7.7

  	
  Transactions with
  Affiliates

  	
  77

  
				

 

iii

 

	
  7.8

  	
  Restrictive Agreements

  	
  78

  
	
   

  	
   

  	
   

  
	
  7.9

  	
  Certain Financial
  Covenants

  	
  78

  
	
   

  	
   

  	
   

  
	
  7.10

  	
  Lines of Business

  	
  83

  
	
   

  	
   

  	
   

  
	
  7.11

  	
  Management Compensation

  	
  83

  
	
   

  	
   

  	
   

  
	
  7.12

  	
  Subordinated
  Indebtedness

  	
  83

  
	
   

  	
   

  	
   

  
	
  7.13

  	
  Modifications of
  Certain Documents

  	
  84

  
	
   

  	
   

  	
   

  
	
  7.14

  	
  Sale-Leaseback
  Transactions

  	
  84

  
	
   

  	
   

  	
   

  
	
  7.15

  	
  Real Property Leases

  	
  84

  
	
   

  	
   

  	
   

  
	
  7.16

  	
  Compensation Payments
  to Stephen Adams

  	
  84

  
	
   

  	
   

  	
   

  
	
  7.17

  	
  Restrictions on the
  Holding Company

  	
  85

  
	
   

  	
   

  	
   

  
	
  7.18

  	
  Restrictions on CWFR

  	
  85

  
	
   

  	
   

  
	
  ARTICLE VIII

  	
  EVENTS OF DEFAULT

  	
  85

  
	
   

  	
   

  
	
  8.1

  	
  Events of Default

  	
  85

  
	
   

  	
   

  	
   

  
	
  8.2

  	
  Receivership

  	
  89

  
	
   

  	
   

  
	
  ARTICLE IX

  	
  THE ADMINISTRATIVE
  AGENT

  	
  90

  
	
   

  	
   

  
	
  9.1

  	
  Appointment and
  Authorization

  	
  90

  
	
   

  	
   

  	
   

  
	
  9.2

  	
  Administrative Agent’s
  Rights as Lenders

  	
  90

  
	
   

  	
   

  	
   

  
	
  9.3

  	
  Duties As Expressly
  Stated

  	
  90

  
	
   

  	
   

  	
   

  
	
  9.4

  	
  Reliance By
  Administrative Agent

  	
  91

  
	
   

  	
   

  	
   

  
	
  9.5

  	
  Action Through
  Sub-Administrative Agents

  	
  91

  
	
   

  	
   

  	
   

  
	
  9.6

  	
  Resignation of
  Administrative Agent and Appointment of Successor Administrative Agent

  	
  91

  
	
   

  	
   

  	
   

  
	
  9.7

  	
  Lenders’ Independent
  Decisions

  	
  92

  
	
   

  	
   

  	
   

  
	
  9.8

  	
  [Reserved]

  	
  92

  
	
   

  	
   

  	
   

  
	
  9.9

  	
  Indemnification

  	
  92

  
	
   

  	
   

  	
   

  
	
  9.10

  	
  Consents Under Other
  Loan Documents

  	
  93

  
	
   

  	
   

  
	
  ARTICLE X

  	
  MISCELLANEOUS

  	
  93

  
	
   

  	
   

  
	
  10.1

  	
  Notices

  	
  93

  
	
   

  	
   

  	
   

  
	
  10.2

  	
  Waivers; Amendments

  	
  93

  
	
   

  	
   

  	
   

  
	
  10.3

  	
  Expenses; Indemnity:
  Damage Waiver

  	
  95

  
	
   

  	
   

  	
   

  
	
  10.4

  	
  Successors and Assigns

  	
  97

  
	
   

  	
   

  	
   

  
	
  10.5

  	
  Survival

  	
  99

  
	
   

  	
   

  	
   

  
	
  10.6

  	
  Counterparts;
  Integration; References to Agreement; Effectiveness

  	
  100

  
				

 

iv

 

	
  10.7

  	
  Severability

  	
  100

  
	
   

  	
   

  	
   

  
	
  10.8

  	
  Right of Setoff

  	
  100

  
	
   

  	
   

  	
   

  
	
  10.9

  	
  Governing Law;
  Jurisdiction; Consent to Service of Process

  	
  100

  
	
   

  	
   

  	
   

  
	
  10.10

  	
  WAIVER OF JURY TRIAL

  	
  101

  
	
   

  	
   

  	
   

  
	
  10.11

  	
  Headings

  	
  101

  
	
   

  	
   

  	
   

  
	
  10.12

  	
  Successor Facility

  	
  101

  
	
   

  	
   

  	
   

  
	
  10.13

  	
  Confidentiality

  	
  102

  
	
   

  	
   

  	
   

  
	
  10.14

  	
  Continued
  Effectiveness; No Novation

  	
  102

  
	
   

  	
   

  	
   

  
	
  10.15

  	
  Revival and
  Reinstatement of Obligations 

  	
  103

  

 

v

 

SCHEDULES &
EXHIBITS

 

	
  Schedule 2.1

  	
  List of Lenders, Term
  Loan Commitments and Issue Discount

  
	
   

  	
   

  
	
  Schedule 4.5

  	
  Real Property Assets

  
	
   

  	
   

  
	
  Schedule 4.6

  	
  Disclosed Matters

  
	
   

  	
   

  
	
  Schedule 4.11

  	
  Management Structure

  
	
   

  	
   

  
	
  Schedule 4.12

  	
  Capitalization

  
	
   

  	
   

  
	
  Schedule 4.13

  	
  Subsidiaries

  
	
   

  	
   

  
	
  Schedule 4.14

  	
  Material Indebtedness,
  Liens and Agreements

  
	
   

  	
   

  
	
  Schedule 4.19

  	
  Labor and Employment
  Matters

  
	
   

  	
   

  
	
  Schedule 4.22

  	
  Insurance Policies

  
	
   

  	
   

  
	
  Schedule 6.1

  	
  Financial Statements

  
	
   

  	
   

  
	
  Schedule 7.7

  	
  Transactions with
  Affiliates

  
	
   

  	
   

  
	
  Schedule 7.8

  	
  Restrictive Agreements

  
	
   

  	
   

  
	
  Exhibit A

  	
  Form of
  Nonrecourse Guaranty and Pledge Agreement

  
	
   

  	
   

  
	
  Exhibit B

  	
  Form of Pledge
  Agreement

  
	
   

  	
   

  
	
  Exhibit C

  	
  Form of Security
  Agreement, including Perfection Certificate as Schedule I

  
	
   

  	
   

  
	
  Exhibit D

  	
  Form of Trademark
  Security Agreement

  
	
   

  	
   

  
	
  Exhibit E

  	
  Form of Hazardous
  Materials Indemnity Agreement

  
	
   

  	
   

  
	
  Exhibit F

  	
  Form of Affiliate
  Subordination Agreement

  
	
   

  	
   

  
	
  Exhibit G-1

  	
  Form of Compliance
  Certificate

  
	
   

  	
   

  
	
  Exhibit H

  	
  Form of Opinion of
  Counsel to Credit Parties

  
	
   

  	
   

  
	
  Exhibit I

  	
  Form of Assignment
  and Acceptance

  
	
   

  	
   

  
	
  Exhibit J

  	
  Form of Copyright
  Security Agreement

  

 

vi

 

SECOND
AMENDED AND RESTATED CREDIT AGREEMENT

 

SECOND AMENDED AND
RESTATED CREDIT AGREEMENT (this “Agreement”) dated as of March 1,
2010 among AFFINITY GROUP, INC., THE GUARANTORS PARTY HERETO, THE LENDERS PARTY
HERETO, WILMINGTON TRUST FSB, as Administrative Agent.  This
Agreement amends and restates in its entirety the Amended and Restated Credit
Agreement dated as of June 24, 2003 among Affinity Group, Inc., the
Guarantors party thereto, the Lenders party thereto, Canadian Imperial Bank of
Commerce, as Syndication Agent, General Electric Capital Corporation, as
Documentation Agent, and Canadian Imperial Bank of Commerce, as Administrative
Agent, as heretofore amended, supplemented or otherwise modified and in effect
on the date hereof immediately before giving effect to the amendment and
restatement contemplated hereby (the “Existing Credit Agreement”).  Obligations of the Credit Parties with
respect to the Loans (as such term is hereinafter defined) constitute “Permitted
Indebtedness” under the Holding Company Notes Indenture (as hereinafter
defined).

 

WHEREAS the parties to
the Existing Credit Agreement desire to amend and restate the Existing Credit
Agreement in its entirety in order to make certain modifications to the
Existing Credit Agreement, in each case on and subject to the terms and
conditions set forth herein to read as set forth in this Agreement, and it has
been agreed by them that the Loans and any other obligations outstanding as of
the Effective Date and other “Secured Obligations” under the Existing Credit
Agreement (including indemnities) shall be governed by and deemed to be
outstanding under this Agreement with the intent that the terms of this
Agreement shall supersede the terms of the Existing Credit Agreement (which
shall hereafter have no further effect upon the parties thereto other than with
respect to any action, event, representation, warranty or covenant occurring,
made or applying prior to the Effective Date), and all references to the
Existing Credit Agreement in any Loan Document or other document or instrument
delivered in connection herewith or therewith shall be deemed to refer to this
Agreement and the provisions hereof; provided that (i) the grants of
security interests, Mortgages and Liens under and pursuant to the Loan
Documents shall continue unaltered to secure, guarantee, support and otherwise
benefit the Obligations of the Borrower and the other Credit Parties under this
Agreement and each other Loan Document shall continue in full force and effect
in accordance with its terms except as expressly amended thereby or hereby, and
the parties hereto hereby ratify and confirm the terms thereof as being in full
force and effect and unaltered by this Agreement except as expressly amended
thereby or hereby, and (ii) it is agreed and understood that this
Agreement does not constitute a novation, satisfaction, payment or reborrowing
of any Secured Obligation under the Existing Credit Agreement or any other Loan
Document except as expressly modified by this Agreement, nor does it operate as
a waiver of any right, power or remedy of any Lender or Agent under any Loan
Document.

 

The parties hereto agree
that the Existing Credit Agreement shall be amended and restated as of the date
hereof (but subject to Section 5.1) in its entirety as follows:

 

 

ARTICLE I

 

Definitions

 

1.1          Defined Terms.  As used in this Agreement, the following
terms have the meanings specified below:

 

“ACH Transactions” shall mean any cash management or related
services including the automated clearinghouse transfer of funds by the
Administrative Agent (or any Affiliate of the Administrative Agent) for the
account of the Credit Parties pursuant to agreement or overdrafts.

 

“Acquisition”
means any transaction, or any series of related transactions, consummated after
the date hereof, by which (i) any Credit Party acquires the business of,
or all or substantially all of the assets of, any firm or corporation which is
not a Credit Party, or any division of such firm or corporation, located in a
specific geographic area or areas, whether through purchase of assets, purchase
of stock, merger or otherwise or (ii) any Person that was not theretofore
a Subsidiary of a Credit Party becomes a Subsidiary of a Credit Party.

 

“Adams Party”
means Stephen Adams, his wife, his children, his grandchildren, and trusts of
which he, his wife, his children and his grandchildren are the sole
beneficiaries and for which one or more of such individuals are the trustee(s).

 

“Additional Mortgage”
has the meaning assigned to such term in Section 6.13(b)(i).

 

“Additional Mortgage
Policies” has the meaning assigned to such term in Section 6.13(b)(vi).

 

“Additional Mortgaged
Property” has the meaning assigned to such term in Section 6.13(b).

 

“Adjusted Base Rate”
means, for any day, a rate per annum equal to the greatest of (a) the
Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in
effect on such day plus 1/2 of 1% and (c) 5.25% per annum.  Any
change in the Adjusted Base Rate due to a change in the Prime Rate or the
Federal Funds Effective Rate shall be effective from and including the
effective date of such change in the Prime Rate or the Federal Funds Effective
Rate, respectively.

 

“Administrative Agent”
means Wilmington Trust FSB in its capacity as Administrative Agent for the
Lenders hereunder, and shall include any successor to the Administrative Agent
appointed pursuant to Section 9.6.

 

“Administrative Agent
Fee Letter” means that certain Fee Letter dated March 1, 2010, by and
between the Borrower and the Administrative Agent, as the same may be amended,
restated, modified, supplemented, extended, renewed or replaced.

 

“Administrative Agent Hedge Agreement” shall mean any and all
Hedge Agreements now existing or hereafter entered into between or among any
Credit Party, on the one hand, and the Administrative Agent (or an Affiliate of
the Administrative Agent), on the other hand.

 

2

 

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

 

“Affiliate” means,
with respect to a specified Person, another Person that directly, or indirectly
through one or more intermediaries, Controls or is Controlled by or is under
common Control with the Person specified. 
Notwithstanding the foregoing, (a) no individual shall be an Affiliate
solely by reason of his or her being a director, officer or employee of any
Credit Party and (b) none of the Credit Parties shall be Affiliates.

 

“Affiliate
Subordination Agreement” means the Second Amended and Restated Affiliate
Subordination Agreement dated as of the Effective Date, among the Holding
Company, the Borrower, the Parent, Stephen Adams and the Administrative Agent
substantially in the form of Exhibit F annexed hereto, as such
agreement may thereafter be amended, supplemented or otherwise modified from
time to time.

 

“Affinity Entities”
means each Subsidiary of the Borrower that is not a Camping World Entity.

 

“Agent Appointment
Agreement” means the Resignation and Succession Agreement dated March 1,
2010 by and among Canadian Imperial Bank of Commerce, Administrative Agent and
the Borrower.

 

“Agreement” means
this Credit Agreement, as amended, supplemented or otherwise modified from time
to time.

 

“Anti-Terrorism Laws”
shall mean any laws relating to terrorism or money laundering, including
Executive Order No. 13224 and the USA Patriot Act.

 

“Applicable Percentage”
means with respect to any Lender in respect of any indemnity claim under Section 10.3(c) arising
out of an action or omission of the Administrative Agent under this Agreement
or otherwise, the percentage of the total Term Loan Commitments hereunder
represented by the aggregate amount of such Lender’s Term Loan Commitments
hereunder.

 

“Applicable Margin”
means for (i) for Base Rate Loans, 8.75% per annum and (ii) for
Eurodollar Loans, 10.0% per annum.

 

“Approved Fund”
means, with respect to any Lender, any fund that invests (in whole or in part)
in commercial loans and is managed, advised or serviced by such Lender or the
same investment advisor as such Lender or by an Affiliate of such Lender or
such investment advisor.

 

“Asset Sale” has
the meaning given to that term in the FRH Preferred.

 

“Assignment and
Acceptance” means an assignment and acceptance entered into by a Lender and
an assignee (with the consent of any party whose consent is required by Section 10.4),
and accepted by the Administrative Agent, in the form of Exhibit I
annexed hereto or any other form approved by the Administrative Agent.

 

3

 

 

“Bank Products”
shall mean any one or more of the following types of services or facilities
extended to the Credit Parties by the Administrative Agent (or any Affiliate of
the Administrative Agent):  (a) credit
cards; (b) ACH Transactions; (c) cash management, including
controlled disbursement services; and (d) Administrative Agent Hedge
Agreements.

 

“Base Rate” when
used in reference to the Loans, refers to whether the Loans are bearing
interest at a rate determined by reference to the Adjusted Base Rate.

 

“Basic Documents”
means the Loan Documents, the Senior Subordinated Note Indenture, the Senior
Subordinated Notes, and any related agreement.

 

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

 

“Board of Directors”
means the board of directors or other governing body of a Person.

 

“Borrower” means
Affinity Group, Inc., a Delaware corporation.

 

“Borrower Debt”
means the Indebtedness of Borrower as described in clauses (a), (b), and (c) of
the definition of “Indebtedness” (determined on a consolidated basis without
duplication in accordance with GAAP), excluding any Subordinated Indebtedness.

 

“Borrowing” means
Loans made, converted or continued on the same date.

 

“Business Day”
means any day that is not a Saturday, Sunday or other day on which commercial
banks in New York City are authorized or required by law to remain closed; provided that, when used in connection with a Eurodollar
Loan, the term “Business Day” shall also exclude any day on which banks
are not open for dealings in U.S. dollar deposits in the London interbank
market.

 

“Camping World”
means, collectively, CWI, Inc., a Kentucky corporation and a Wholly-Owned
Subsidiary of the Borrower, and Camping World, Inc, a Kentucky corporation and
a Wholly-Owned Subsidiary of CWI, Inc.

 

“Camping World Credit
Agreement” means a credit agreement among the Camping World Entities and
the Camping World Lenders, with such terms and conditions as shall be
satisfactory in form and substance to the Administrative Agent.

 

“Camping World Credit
Facility” means the credit facility established pursuant to the Camping
World Credit Agreement providing aggregate revolving credit commitments not in
excess of $12,000,000 and a facility to support letters of credit not in excess
of $10,000,000.

 

“Camping World
Entities” means CWI, Inc., Camping World, Inc.,  and their respective Subsidiaries other than
CWFR.

 

“Camping World Lenders”
means the holders of the indebtedness under the Camping World Credit Facility
and any agents for such lenders.

 

4

 

“Camping World
Intercreditor Agreement” means the Intercreditor Agreement, dated as of
even date herewith, between the Administrative Agent, on behalf of the Term
Lenders, and the Camping World Lenders, in form and substance satisfactory to
the Term Lenders, as such agreement may be amended, supplemented or otherwise
modified from time to time.

 

“Capital Expenditures”
means, for any period, the sum for the Credit Parties (determined on a consolidated
basis without duplication in accordance with GAAP) of the aggregate amount of
expenditures (including the aggregate amount of Capital Lease Obligations
incurred during such period) made to acquire or construct fixed assets, plant
and equipment (including renewals, improvements and replacements, but excluding
repairs) during such period computed in accordance with GAAP; provided that such term shall not include any such
expenditures in connection with any replacement or repair of Property affected
by a Casualty Event.  Notwithstanding the
foregoing, the purchase price of any Acquisition shall not be deemed a “Capital
Expenditure” for purposes hereof.

 

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

 

“Cash Equivalents”
means, as at any date of determination, (i) marketable securities (a) issued
or directly and unconditionally guaranteed as to interest and principal by the
United States Government, (b) issued by any agency of the United States
the obligations of which are backed by the full faith and credit of the United
States, in each case maturing within one year after such date; (ii) marketable
direct obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof,
in each case maturing within one year after such date and having, at the time
of the acquisition thereof, the highest rating obtainable from either Standard &
Poor’s (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”);
(iii) commercial paper maturing no more than one year from the date of
creation thereof and having, at the time of the acquisition thereof, a rating
of at least A-1 from S&P or at least P-1 from Moody’s; (iv) certificates
of deposit or bankers’ acceptances maturing within one year after such date and
issued or accepted by any Lender or by any commercial bank organized under the
laws of the United States of America or any state thereof or the District of
Columbia that (1) is at least “adequately capitalized” (as defined in the
regulations of its primary Federal banking regulator) and (2) has Tier 1
capital (as defined in such regulations) of not less than $100,000,000; and (v) shares
of any money market mutual fund that (1) has at least 95% of its assets
invested continuously in the types of investments referred to in clauses (i) and
(ii) above, (2) has net assets of not less than $500,000,000, and (3) has
the highest rating obtainable from either S&P or Moody’s, or (c) other
cash equivalent investments agreed to from time to time between the Borrower
and the Required Lenders.

 

“Cash Interest”
means interest on the Term Loans that is payable in cash on every Interest
Payment Date and subject to any other terms and conditions specified in this
Agreement.

 

5

 

“Cash Interest Expense”
means, for any period, the sum, for the Credit Parties (determined on a
consolidated basis without duplication in accordance with GAAP) of the
following:  (a) all interest in
respect of Indebtedness actually paid in cash during such period plus (b) the
amount of Restricted Junior Payments made to the Holding Company pursuant to Section 7.6
(i) during such period unless such Restricted Junior Payment is made with
the proceeds of distributions or other payments made by FRH to CWFR in respect
of the FRH Preferred Equity Interest and is subsequently distributed by CWFR to
the Borrower plus (c) the net amounts paid in cash under Hedging
Agreements during such period including, fees, but excluding legal fees and
other similar transaction costs and payments made in cash by reason of the
early termination of Hedging Agreements in effect on the Effective Date plus (d) all
fees, including letter of credit fees and expenses, paid hereunder after the
Effective Date but excluding all fees, commissions and expenses (including
reimbursement of legal fees and similar transaction costs) paid on the
Effective Date in respect of this Agreement. 
Notwithstanding anything contained in the foregoing which may be to the
contrary, consent fees, waiver fees, deferred financing costs or intangible
assets which are paid or are written off as a consequence of the waiver,
amendment, repayment or discharge of Indebtedness shall not be included in Cash
Interest Expense.

 

Notwithstanding the
foregoing, if during any period for which Cash Interest Expense is being
determined, any Credit Party shall have consummated any Acquisition, then, for
all purposes of this Agreement with the exception of the calculation of Excess
Cash Flow, any Indebtedness incurred in connection with such Acquisition shall
be deemed to have been incurred on a pro forma basis, as if such Acquisition
had been consummated on the first day of such period and under the assumption
that interest for such period had been equal to the actual weighted average
interest rate in effect for the Loans hereunder on the date of such Acquisition.

 

“Casualty Event”
means, with respect to any Property of any Person, any loss of or damage to, or
any condemnation or other taking of, such Property for which such Person or any
of its Subsidiaries receives insurance proceeds, or proceeds of a condemnation
award or other compensation.

 

“Change in Law”
means (a) the adoption of any law, rule or regulation after Effective
Date, (b) any change in any law, rule or regulation or in the
interpretation or application thereof by any Governmental Authority (whether or
not having the force of law) after the Effective Date or (c) compliance by
any Lender (or, for purposes of Section 2.14(b), by any lending office of
such Lender or by such Lender’s holding company, if any) with any request,
guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the Effective Date.

 

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

 

(i)            the
capital stock of the Parent owned directly or indirectly by Stephen Adams and
other Adams Parties shall (on a fully diluted basis after giving effect to the
exercise of any outstanding rights or options to acquire capital stock of the
Borrower) cease to constitute either (x) at least 51% of the aggregate
equity capital of the Parent or (y) at least such percentage of the
aggregate voting stock of 

 

6

 

the Parent as is
sufficient at all times to elect a majority of the Board of Directors of the
Parent;

 

(ii)           the
Parent shall cease to own directly or indirectly all of the outstanding capital
stock of the Holding Company;

 

(iii)          any
Person or group (within the meaning of the Securities Exchange Act of 1934 and
the rules of the Securities and Exchange Commission thereunder as in effect on
the date hereof) other than Stephen Adams or other Adams Parties shall (x) acquire
or own, directly or indirectly, beneficially or of record, shares representing
more than 20% of the aggregate equity capital of the Parent or (y) acquire
direct or indirect Control of the Parent;

 

(iv)          a
majority of the seats (other than vacant seats) on the Board of Directors of
the Borrower shall be occupied by Persons who were neither (x) nominated
by the board of directors of the Borrower nor (y) appointed by directors
so nominated; or

 

(v)           the
Holding Company shall cease to own, directly or indirectly, at least 90% of the
outstanding capital stock of the Borrower; or

 

(vi)          a “Change
of Control” (as defined therein) will be deemed to have occurred under the
Senior Subordinated Notes Indenture or the Holding Company Notes Indenture;

 

“Chief Restructuring
Officer” has the meaning set forth in Section 6.15.

 

“Code” means the
Internal Revenue Code of 1986, as amended from time to time.

 

“Collateral”
means, collectively, all of the real, personal and mixed property (including
capital stock and other equity interests) in which Liens are purported to be
granted pursuant to the Collateral Documents as security for all obligations of
the Credit Parties hereunder.

 

“Collateral Documents”
means the Holding Company Collateral Documents, the Pledge Agreement, the
Security Agreement, the Trademark Security Agreement, the Copyright Security
Agreement, the Mortgages, and all other agreements, instruments or documents
delivered by any Credit Party or Affiliate thereof pursuant to this Agreement
or any of the other Loan Documents in order to grant to the Administrative
Agent a Lien on any real, personal or mixed property of that Credit Party as
security for any of its obligations hereunder.

 

“Commitments”
means (a) for all Lenders, the aggregate Term Loan Commitments of all
Lenders, and (b) for each Lender, such Lender’s Term Loan Commitment.

 

“Compliance
Certificate” means a certificate signed by a Financial Officer of the Borrower,
in substantially the form of Exhibit G-1 annexed hereto, (i) certifying
as to whether a Default has occurred and, if a Default has occurred, specifying
the details thereof and any action taken or proposed to be taken with respect
thereto, (ii) setting forth reasonably detailed calculations demonstrating
compliance with Section 7.9 (including a statement of the 

 

7

 

Consolidated Total
Leverage Ratio for purposes of the definition of Applicable Margin), and, if
such certificate is accompanying the annual financial statements required to be
delivered pursuant to Section 6.1(a), setting forth a reasonably detailed
calculation of the amount of Excess Cash Flow for the Borrower’s most recently
completed fiscal year for the purpose of Section 2.10(b)(iv), and (iii) stating
whether any change in GAAP or in the application thereof has occurred since the
date of the audited financial statements referred to in Section 4.4 and,
if any such change has occurred, specifying the effect of such change on the
financial statements accompanying such certificate.

 

“Conforming Leasehold
Interest” means any Recorded Leasehold Interest as to which the lessor has
agreed in writing for the benefit of the Administrative Agent (which writing
has been delivered to the Administrative Agent), whether under terms of the
applicable lease, under the terms of a Landlord Consent and Estoppel, or
otherwise, to the matters described in the form of Landlord Consent and
Estoppel approved by the Administrative Agent in its reasonable discretion,
which interest, if a subleasehold interest or sub-subleasehold interest, is not
subject to any contrary restrictions contained in a superior lease or sublease.

 

“Consolidated Fixed
Charges Ratio” means, as at any date, commencing with the fiscal quarter
ending June 30, 2010, the ratio of (a) the total of (i) EBITDA
for the period of four consecutive fiscal quarters ending on or most recently
ended prior to such date minus (ii) the aggregate amount of all Capital
Expenditures made during such period to (b)  the sum for the Credit
Parties (determined on a consolidated basis without duplication in accordance
with GAAP) of the following:  (i) Cash
Interest Expense for such period, plus (ii) all regularly scheduled
payments of principal on any Indebtedness (including the Term Loans and the
principal component of any payments in respect of Capital Lease Obligations for
such period, plus (iii) the aggregate amount paid, or required to be paid
(without duplication as between fiscal periods), in cash in respect of income,
franchise and other like taxes (excluding real estate taxes) for such period
(to the extent not deducted in determining EBITDA for such period) (but
excluding any accrued tax liability not paid in cash resulting from the
election by the Borrower to be treated as an “S Corporation” under the Code or
from the election by the Borrower to treat any of the Guarantors as “Qualified
Subchapter S Subsidiaries” under the Code) plus (iv) Permitted Tax
Distributions to the extent paid in cash during such period plus (v) any
payments in respect of deferred compensation to the extent paid in cash during
such period plus (vi) any payments in respect of Phantom Stock Agreements
to the extent paid in cash during such period; provided, however, that the
Consolidated Fixed Charges Ratio for any period prior to the Effective Date
shall be determined on a pro forma basis.

 

“Consolidated Interest
Coverage Ratio” means, as at any date, commencing with the fiscal quarter
ending June 30, 2010, the ratio of (a) EBITDA for the period of four
consecutive fiscal quarters ending on or most recently ended prior to such
date, to (b) Cash Interest Expense for such period; provided, however,
that EBITDA and Cash Interest Expense for any period prior to the Effective
Date shall be determined on a pro forma basis.

 

“Consolidated
Operating Company Leverage Ratio” means, as at any date, commencing with
the fiscal quarter ending June 30, 2010, the ratio of (a) Borrower Debt
minus cash and Cash Equivalents held by the Borrower on such date to the extent
such cash and Cash Equivalents are unrestricted and available for the payment
of the debts of the Borrower in an aggregate amount 

 

8

 

not in excess of the sum
of $10,000,000 to (b) EBITDA for the period of four consecutive
fiscal quarters ending on or most recently ended prior to such date; provided,
however, that the Consolidated Operating Company Leverage Ratio for any period
prior to the Effective Date shall be determined on a pro forma basis.

 

“Consolidated Senior
Leverage Ratio” means, as at any date, commencing with the fiscal quarter
ending June 30, 2010, the ratio of (a) Senior Debt minus cash and
Cash Equivalents held by the Credit Parties on such date to the extent such
cash and Cash Equivalents are unrestricted and available for the payment of the
debts of the Credit Parties in an aggregate amount not in excess of the sum of (i) $10,000,000,
to (b) EBITDA for the period of four consecutive fiscal quarters ending on
or most recently ended prior to such date; provided, however, that the
Consolidated Senior Leverage Ratio for any period prior to the Effective Date
shall be determined on a pro forma basis.

 

“Consolidated Total
Leverage Ratio” means, as at any date, commencing with the fiscal quarter
ending June 30, 2010, the ratio of (a) the Indebtedness of the Credit
Parties and the Holding Company excluding amounts described in clauses (d) and
(g) of the definition of “Indebtedness” (determined on a consolidated
basis without duplication in accordance with GAAP), including Subordinated
Indebtedness, minus  cash and Cash
Equivalents held by such Credit Parties on such date to the extent to such cash
and Cash Equivalents are unrestricted and available for the payment of the
debts of the Credit Parties in an aggregate amount not in excess of the sum of
$10,000,000 to (b) EBITDA for the period of four consecutive fiscal
quarters ending on or most recently ended prior to such date; provided,
however, that the Consolidated Total Leverage Ratio for any period prior to the
Effective Date shall be determined on a pro forma basis.

 

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

 

“Copyright Security
Agreement” means the Copyright Security Agreement dated as of the Effective
Date, among the Grantors, the Administrative Agent and the Lenders
substantially in the form of Exhibit J annexed hereto, as such
agreement may thereafter be amended, supplemented or otherwise modified from
time to time.

 

“Credit Parties”
means (a) the Borrower and (b) its Subsidiaries other than CWFR.

 

“CWFR” means CWFR
Capital Corp., a Wholly Owned Subsidiary of CWI, Inc.

 

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

 

“Deferred Revenues”
means that portion of subscription and membership revenues, product and
services revenues and publication revenues carried as a liability by any of the
Credit Parties on the balance sheet of that Person, which will be recognized as
revenue on that Person’s statement of operations in future periods, all as
determined in accordance with GAAP.

 

9

 

“Disclosed Matters”
means the actions, suits and proceedings and the environmental matters
disclosed in Schedule 4.6.

 

“Disposition”
means any sale, assignment, lease, transfer or other disposition of any
property (whether now owned or hereafter acquired) by any Credit Party to any
other Person excluding (a) the granting of Liens to the Administrative
Agent on behalf of the Lenders pursuant to the Collateral Documents, and (b) any
sale, assignment, transfer or other disposition of (i) any property sold
or disposed of in the ordinary course of business and on ordinary business
terms, (ii) any property no longer used or useful in the business of the
Credit Parties and (iii) any Collateral under and as defined in the
Collateral Documents pursuant to an exercise of remedies by the Administrative
Agent thereunder.

 

“Disposition
Investment” means, with respect to any Disposition, any promissory notes or
other evidences of indebtedness or Investments received by any Credit Party in
connection with such Disposition.

 

“EBITDA” means,
for any period, operating income for the Credit Parties (determined on a
consolidated basis without duplication in accordance with GAAP) for such period
plus (to the extent deducted in computing operating income) (a) income,
franchise and other like taxes (excluding real estate taxes) expensed during
such period, interest, depreciation, amortization and other write-offs of
intangible assets such as goodwill and any other non-cash income or charges
expensed for such period (including such charges in respect of Phantom Stock
Accruals) and (except to the extent received or paid in cash by the Credit
Parties) income or loss attributable to equity in Affiliates for such period),
excluding from the calculation of such operating income (determined on a
consolidated basis without duplication in accordance with GAAP) any
extraordinary and unusual gains or losses (determined on a consolidated basis
without duplication in accordance with GAAP) during such period and excluding
from the calculation of such operating income the income or loss from any
Casualty Events and Dispositions. 
Notwithstanding the foregoing which may be to the contrary, the
following shall not be deducted in determining operating income: amounts
accrued or paid as consent fees, waiver fees, deferred financing costs or
intangible assets which are written off as a consequence of the waiver,
amendment, repayment or discharge of Indebtedness under or with respect, to the
extent paid on or around the Effective Date only, to (x) the Existing
Credit Agreement, (y) this Agreement and the other financial proposals
preceding this Agreement, and (z) the Camping World Credit Facility,
provided further, however, that items (x), (y) and (z) shall not be
applicable for purposes of this definition in calculating EBITDA in connection
with any future transactions entered into by the Company.

 

Notwithstanding the
foregoing, if during any period for which EBITDA is being determined, any
Credit Party shall have consummated any Acquisition and (if such acquisition is
a stock or other equity Acquisition) the company acquired in such Acquisition
becomes a Subsidiary in accordance with the provisions of Section 6.10(a) then,
for all purposes of this Agreement, with the exception of the calculation of
Excess Cash Flow, EBITDA shall be determined on a pro forma basis as if such
Acquisition had been made or consummated on the first day of such period.

 

10

 

“Effective Date”
means the date on which the conditions specified in Section 5.1 are
satisfied (or waived in accordance with Section 10.2).

 

“Effective Date
Mortgage” has the meaning assigned to such term in Section 5.1(f)(i).

 

“Effective Date
Mortgage Policies” has the meaning assigned to such term in Section 5.1(f)(vi).

 

“Effective Date
Mortgaged Property” has the meaning assigned to such term in Section 5.1(f)(i).

 

“Environmental Laws”
means all laws, rules, regulations, codes, ordinances, orders, decrees,
judgments, injunctions, notices or binding agreements issued, promulgated or
entered into by any Governmental Authority, relating in any way to the
environment, preservation or reclamation of natural resources, the management,
release or threatened release of any Hazardous Material or to health and safety
matters.

 

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

 

“Equity Rights”
means, with respect to any Person, any subscriptions, options, warrants,
commitments, preemptive rights or agreements of any kind (including any
stockholders’ or voting trust agreements) for the issuance or sale of, or
securities convertible into, any additional shares of capital stock of any
class, or partnership or other ownership interests of any type in, such Person.

 

“ERISA” means the
Employee Retirement Income Security Act of 1974, as amended from time to time.

 

“ERISA Affiliate”
means any trade or business (whether or not incorporated) that, together with
the Borrower, is treated as a single employer under Section 414(b) or
(c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412
of the Code, is treated as a single employer under Section 414 of the
Code.

 

“ERISA Event”
means (a) any “reportable event”, as defined in Section 4043 of ERISA
or the regulations issued thereunder with respect to a Plan (other than an
event for which the 30-day notice period is waived), (b) the existence
with respect to any Plan of an “accumulated funding deficiency” (as defined in Section 412
of the Code or Section 302 of ERISA), whether or not waived, (c) the
filing pursuant to Section 412(d) of the Code or Section 303(d) of
ERISA of an application for a waiver of the minimum funding standard with
respect to any Plan, (d) the incurrence by the Borrower or any of its
ERISA Affiliates of any liability under Title IV of ERISA with respect to the
termination of any Plan, (e) the receipt by the Borrower or any ERISA 

 

11

 

Affiliate from the PBGC
or a plan administrator of any notice relating to an intention to terminate any
Plan or Plans or to appoint a trustee to administer any Plan, (f) the
incurrence by the Borrower or any of its ERISA Affiliates of any liability with
respect to the withdrawal or partial withdrawal from any Plan or Multiemployer
Plan, or (g) the receipt by the Borrower or any ERISA Affiliate of any
notice, or the receipt by any Multiemployer Plan from the Borrower or any ERISA
Affiliate of any notice, concerning the imposition of Withdrawal Liability or a
determination that a Multiemployer Plan is, or is expected to be, insolvent or
in reorganization, within the meaning of Title IV of ERISA.

 

“Eurodollar”
means, when used in reference to the Loans, that the interest on the Loans is
determined by reference to the Three Month LIBOR Rate.

 

“Event of Default”
has the meaning assigned to such term in Section 8.1.

 

“Excess Cash Flow”
means, for each fiscal year, commencing with the fiscal year ending December 31,
2010 and for each fiscal year thereafter, (a) the sum of EBITDA plus
Related Retail Sale-Leaseback Proceeds received in such fiscal year minus (b) the
sum of the following (to the extent not deducted in computing EBITDA):  (i) Cash Interest Expense for such
fiscal year, plus (ii) the aggregate amount of all Non-Financed Capital
Expenditures made during such fiscal year, plus (iii) all regularly
scheduled payments, mandatory prepayments and voluntary prepayments (other than
any voluntary prepayments in respect of the Camping World Credit Agreement) of
principal on any Indebtedness (including the Term Loans and the principal
component of any payments in respect of Capital Lease Obligations for such
fiscal year), plus (iv)  the aggregate amount paid, or required to be
paid, in cash in respect of income, franchise, and other like taxes (excluding
real estate taxes) for such fiscal year, plus (v) all Permitted Tax
Distributions to the extent paid in cash during such fiscal year, plus (vi) any
payments in respect of deferred compensation or the Phantom Stock Agreements,
plus (vii) any Restricted Junior Payments made in cash to the extent
permitted to be made pursuant to Section 7.6(b), in each case, to the
extent paid in cash during such fiscal year minus (c) any net increase in
Working Capital during such fiscal year plus (d) any net decrease in Working
Capital during such fiscal year.

 

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

 

“Excluded Taxes”
means, with respect to the Administrative Agent, any Lender or any other
recipient of any payment to be made by or on account of any obligation of the
Borrower hereunder, (a) income, net worth or franchise taxes or any like
taxes imposed on (or measured by) its net income or net worth by the United
States of America, or by the jurisdiction under the laws of which such
recipient is organized or in which its principal office is located or, in the
case of any Lender, in which its applicable lending office is located or in
which it is taxable solely on account of some connection other than the
execution, delivery or performance of this Agreement or the receipt of income
hereunder, (b) any branch profits taxes imposed by the United States of
America or any similar tax imposed by any other jurisdiction in which the
Borrower is located and (c) in the case of a Foreign Lender (other than an
assignee pursuant to a request by the Borrower under Section 2.18(b)), any
withholding tax that is imposed on amounts payable to such Foreign Lender at
the time such Foreign Lender becomes a party to this Agreement or is
attributable to such Foreign Lender’s failure or inability to comply with Section 2.16(e),
except 

 

12

 

to the extent that such
Foreign Lender’s assignor (if any) was entitled, at the time of assignment, to
receive additional amounts from the Borrower with respect to such withholding
tax pursuant to Section 2.16(a).

 

“Executive Order No. 13224”
shall mean Executive Order No. 13224 on Terrorist Financing, effective September 24,
2001, as the same has been, or shall hereafter be, renewed, extended, amended
or replaced.

 

“Existing Credit
Agreement” has the meaning assigned to such term in the preamble to this
Agreement.

 

“Extraordinary Receipt”
means any cash received by or paid to or for the account of any Credit Party in
excess of $500,000 in the aggregate in any fiscal year not in the ordinary
course of business, including tax refunds, pension plan reversions, proceeds of
insurance (other than proceeds of business interruption insurance to the extent
such proceeds constitute compensation for lost earnings), condemnation awards
(and payments in lieu thereof), indemnity payments and any purchase price
adjustments.

 

“Facilities” means
any and all real property (including, without limitation all buildings,
fixtures or other improvements located thereon) now or hereafter or heretofore
owned, leased, operated or used by any Credit Party or any of their respective
predecessors.

 

“Federal Funds
Effective Rate” means, for any day, the weighted average (rounded upwards,
if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers, as published on the next succeeding Business Day by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day that
is a Business Day, the average (rounded upwards, if necessary, to the next
1/100 of 1%) of the quotations for such day for such transactions received by
the Administrative Agent from three Federal funds brokers of recognized
standing selected by the Administrative Agent.

 

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

 

“First Priority”  means, with respect to any Lien purported to
be created in any Collateral pursuant to any Collateral Document, that such
Lien is the most senior Lien (other than Liens permitted pursuant to Section 7.2
to the extent not perfected by filing of any UCC financing statements) to which
such Collateral is subject.

 

“Flood Hazard Property”
means a Mortgaged Property located in an area designated by the Federal
Emergency Management Agency as having special flood or mud slide hazards.

 

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

 

13

 

 

“FreedomRoads” shall mean
FreedomRoads, LLC, a Minnesota limited liability company, and its Subsidiaries.

 

“Funded Debt” of any Person shall mean, without duplication, as
of any calculation date, (a) any obligation of such Person for borrowed
money, including all of the obligations, (b) any obligation of such Person
evidenced by bonds, debentures, notes or other similar instruments, (c) any
obligation of such Person in respect of the deferred purchase price of property
or for services (other than trade payables incurred in the ordinary course of
business on terms customary in the trade), (d) any Capitalized Lease
Obligation of such Person, (e) any obligation of such Person under any
conditional sale or other title retention agreement(s) relating to
property acquired by such Person, (f) any obligation, contingent or
otherwise, of such Person in respect of letters of credit, acceptances or
similar extensions of credit, (g) any Guaranty by such Person of any
obligation described in clauses (a) through (f) above, (h) any
obligation or liability of others secured by a Lien on property owned by such
Person, whether or not such obligation or liability is assumed by such Person, (i) any
financial obligation of such Person under purchase money mortgages, (j) any
obligation of such Person, contingent or otherwise, to purchase, redeem, retire
or otherwise acquire for value any equity interest of such Person, (k) any
off-balance sheet liability of such Person retained in connection with asset
securitization programs, synthetic leases, sale and leaseback transactions or
other similar obligations arising with respect to any other transaction which
is the functional equivalent of or takes the place of borrowing but which does
not constitute a liability on the consolidated balance sheet of such Person and
its Subsidiaries and (l) any debt, liability or obligation of such Person
arising from or in connection with (i) any Hedge Agreements or (ii) without
double counting, any other debt, liability or obligation arising from or in connection
with any Bank Products; provided, however, that, notwithstanding
anything in GAAP to the contrary, the amount of all obligations shall be the
full face amount of such obligations.

 

“FRH” means
FreedomRoads Holding Company, LLC, a Minnesota limited liability company, all
the common equity of which is held by the Stephen Adams Trust and certain
minority holders and all the preferred equity of which is held by CWFR.

 

“FRH Preferred”
means the rights and preferences of the preferred membership interest in FRH as
adopted by the Board of Governors of FRH on the date of issuance of the Holding
Company Notes.

 

“FRH Preferred Equity
Interest” means the membership interest in FRH having the rights and
preferences of the FRH Preferred.

 

“FRH Restricted Distribution”
means any distribution by FRH to its members with respect to their membership
interests other than (a) distributions to CWFR with respect to the FRH
Preferred Equity Interest and (b) distributions to members in respect of
tax obligations to the extent permitted by the terms of the FRH Preferred.

 

“GAAP” means
generally accepted accounting principles in the United States of America.

 

14

 

“GMAC Insurance
Agreements” means the Service Agreement, dated June 2, 1978, between
National General Insurance Company (“NGIC”) and the Borrower and Trailer Life
Publishing Company, Incorporated, relating to the “Good Sam Club” insurance
plan, including all addenda thereto, as amended or modified, and the Amended and
Restated Marketing Agreement dated as of May 15, 2002 among Camping World and
NGIC, including all addenda thereto, as amended or modified.

 

“Governmental
Authority” means the government of the United States of America, any other
nation or any political subdivision thereof, whether state or local, and any
agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government and the
National Association of Insurance Commissioners.

 

“Guarantee” means
a guarantee, an endorsement, a contingent agreement to purchase or to furnish
funds for the payment or maintenance of, or otherwise to be or become
contingently liable under or with respect to, the Indebtedness, other
obligations, net worth, working capital or earnings of any Person, or a
guarantee of the payment of dividends or other distributions upon the stock or
equity interests of any Person, or an agreement to purchase, sell or lease (as
lessee or lessor) property, products, materials, supplies or services primarily
for the purpose of enabling a debtor to make payment of such debtor’s
obligations or an agreement to assure a creditor against loss, and including,
without limitation, causing a bank or other financial institution to issue a
letter of credit or other similar instrument for the benefit of another Person,
but excluding endorsements for collection or deposit in the ordinary course of
business.  The terms “Guarantee”
and “Guaranteed” used as a verb shall have a correlative meaning.

 

“Guaranteed
Obligations” has the meaning assigned to such term in Section 3.1.

 

“Guarantors” means
the Subsidiaries of the Borrower.

 

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

 

“Hedging Agreement”
means any interest rate protection agreement, foreign currency exchange
agreement, commodity price protection agreement or other interest or currency
exchange rate or commodity price hedging arrangement.

 

“Hedging Agreement
Obligations” means all obligations in respect of any Hedging Agreements
between any Credit Party and the Administrative Agent or any Senior Lender.

 

“Holding Company” means
Affinity Group Holding, Inc., a Delaware corporation which holds all the
outstanding capital stock of the Borrower.

 

“Holding Company
Collateral Documents” means the Nonrecourse Guaranty and Pledge Agreement
executed and delivered by the Holding Company on March 24, 2005
substantially in 

 

15

 

the form of Exhibit A
annexed hereto, as such agreement may be amended, supplemented or otherwise
modified from time to time.

 

“Holding Company Notes”
means the Holding Company’s unsecured Senior Notes due 2012 issued pursuant to
the Holding Company Notes Indenture in an aggregate principal amount not in
excess of the principal amount of the Holding Company Notes issued on the date
of initial issuance of the Holding Company Notes (plus any paid in kind
interest) which notes are not guaranteed by any of the Credit Parties.

 

“Holding Company Notes
Indenture” means the Indenture dated as of March 24, 2005 between the
Holding Company and The Bank of New York, as Trustee, as supplemented or
amended from time to time but excluding any supplement or amendment which
increases the interest rate or any premium applicable to the Holding Company
Notes, increases the principal amount outstanding of the Holding Company Notes
or creates sinking fund or other principal payment or offer to purchase
requirements.

 

“Indebtedness”
means, for any Person:  without
duplication (a) obligations created, issued or incurred by such Person for
borrowed money (whether by loan, advance, the issuance and sale of debt
securities or the sale of Property to another Person subject to an
understanding or agreement, contingent or otherwise, to repurchase such
Property from such Person); (b) obligations of such Person to pay the
deferred purchase or acquisition price of Property or services (other than
Phantom Stock Accruals), other than trade accounts payable (other than for
borrowed money) arising, and accrued expenses incurred, in the ordinary course
of business so long as such trade accounts are payable within 120 days of the
date the respective goods are delivered or the respective services are
rendered; (c) Capital Lease Obligations of such Person; (d) obligations
of such Person in respect of letters of credit or similar instruments issued or
accepted by banks and other financial institutions for the account of such
Person; (e) Indebtedness of others secured by a Lien on the Property of
such Person, whether or not the respective indebtedness so secured has been
assumed by such Person; (f) Indebtedness of others Guaranteed by such
Person; and (g) obligations under Hedging Agreements (and for purposes
hereof, the amount of Indebtedness under a Hedging Agreement shall be deemed to
be equal to the aggregate maximum contingent amount or potential liability under
such Hedging Agreement).  The
Indebtedness of any Person shall include the Indebtedness of any other entity
(including any partnership in which such Person is a general partner) to the
extent such Person is liable therefor as a result of such Person’s ownership
interest in or other relationship with such entity, except to the extent the
terms of such Indebtedness provide that such Person is not liable therefor.

 

“Indemnified Taxes”
means all Taxes other than (a) Excluded Taxes and Other Taxes and (b) amounts
constituting penalties or interest imposed with respect to Excluded Taxes or
Other Taxes.

 

“Interest Election
Request” means a request by the Borrower to convert or continue a Borrowing
in accordance with Section 2.6.

 

16

 

“Interest Payment Date”
means (a) with respect to any Base Rate Loan, the first Business Day of
each month (commencing on April 1, 2010) and (b) with respect to any
Eurodollar Loan, the last Business Day of the Interest Period applicable to
such Eurodollar Loan.

 

“Interest Period”
means with respect to any Eurodollar Borrowing, the period commencing on the
date of such Borrowing and ending on the numerically corresponding day in the
calendar month that is three months thereafter; provided,
that (i) if any Interest Period would end on a day other than a Business
Day, such Interest Period shall be extended to the next succeeding Business Day
unless such next succeeding Business Day would fall in the next calendar month,
in which case such Interest Period shall end on the next preceding Business Day
and (ii) any Interest Period that commences on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day
in the last calendar month of such Interest Period) shall end on the last
Business Day of the last calendar month of such Interest Period.  For purposes hereof, the date of a Borrowing
initially shall be the date on which such Borrowing is made and thereafter
shall be the effective date of the most recent conversion or continuation of
such Borrowing.  Notwithstanding the
foregoing, no Interest Period for any Term Loan may commence before and end
after any Quarterly Date unless, after giving effect thereto, the aggregate
principal amount of the Term Loans having Interest Periods that end after such
Quarterly Date shall be equal to or less than the aggregate principal amount of
the Term Loans scheduled to be outstanding after giving effect to the payments
of principal required to be made on such Quarterly Date.

 

“Investment”
means, for any Person:  (a) the
acquisition (whether for cash, Property, services or securities or otherwise)
of capital stock, bonds, notes, debentures, partnership or other ownership
interests or other securities of any other Person or any agreement to make any
such acquisition (including, without limitation, any “short sale” or any sale
of any securities at a time when such securities are not owned by the Person
entering into such short sale); (b) the making of any deposit with, or
advance, loan or other extension of credit to, or for the benefit of, any other
Person (including the purchase of Property from another Person subject to an
understanding or agreement, contingent or otherwise, to resell such Property to
such Person, but excluding any such advance, loan or extension of credit having
a term not exceeding 180 days representing the purchase price of inventory or
supplies sold by such Person in the ordinary course of business); or (c) the
entering into of any Guarantee of, or other contingent obligation with respect
to, Indebtedness or other liability of any other Person and (without
duplication) any amount committed to be advanced, lent or extended to such
Person.  Notwithstanding the foregoing,
Capital Expenditures and Acquisitions shall not be deemed “Investments”
for purposes hereof.

 

“IP Collateral”  means, collectively, the Collateral under the
Trademark Security Agreement and the Copyright Security Agreement.

 

“Issue Discount”
means an amount equal to two percent (2%) of each Term Loan Commitment, as set
forth on Schedule 2.1.

 

“Landlord Consent and
Estoppel” means, with respect to any Leasehold Property, a letter,
certificate or other instrument in writing from the lessor under the related
lease, in such form as may be approved by the Administrative Agent in its sole
discretion.

 

17

 

“Leasehold Property”
means any leasehold interest of any Credit Party as lessee under any lease of
real property, other than any such leasehold interest designated from time to
time by Administrative Agent in its sole discretion as not being required to be
included in the Collateral.

 

“Lender Representative”
has the meaning set forth in Section 6.14.

 

“Lenders” means
the Persons listed on Schedule 2.1 and any other Person that shall have
become a party hereto pursuant to an Assignment and Acceptance, other than any
such Person that ceases to be a party hereto pursuant to an Assignment and
Acceptance.

 

“Lien” means, with
respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
hypothecation, encumbrance, charge or security interest in, on or of such
asset, (b) the interest of a vendor or a lessor under any conditional sale
agreement, capital lease or title retention agreement (other than an operating
lease) (or any financing lease having substantially the same economic effect as
any of the foregoing) relating to such asset and (c) in the case of
securities, any purchase option, call or similar right of a third party with
respect to such securities.

 

“Liquidation Payment”
has the meaning given to that term in the FRH Preferred and includes any
payment made on account of the FRH Preferred Equity Interest as a result of a
redemption made pursuant to Section 5 of the FRH Preferred.

 

“Loan Documents”
means the Existing Credit Agreement as amended and restated by this Agreement,
any promissory notes evidencing Loans hereunder, the Collateral Documents, the
Affiliate Subordination Agreement, the Agent Appointment Agreement, the
Administrative Agent Fee Letter, the Post-Closing Letter Agreement and any
other instruments or documents delivered or to be delivered by any Credit Party
or Affiliate thereof from time to time pursuant to this Agreement.

 

“Loans” means the
Term Loans.

 

“Material Adverse Effect”
means a material adverse effect on (a) the business, assets (including
intangible assets), operations or condition (financial or otherwise), of the
Credit Parties taken as a whole, (b) the ability of any Credit Party to
perform any of its obligations under this Agreement or the other Loan
Documents, (c) the rights of or benefits available to the Administrative
Agent and the Lenders under this Agreement and the other Loan Documents or (d) any
“Materially Adverse Effect” as such term is defined in the Camping World
Credit Facility as of the Effective Date without regard to any future
amendments thereof.

 

“Material Indebtedness”
means Indebtedness (other than the Term Loans), or obligations in respect of
one or more Hedging Agreements, of any one or more of the Credit Parties in an
aggregate principal amount exceeding $1,000,000.  For purposes of determining Material
Indebtedness, the “principal amount” of the obligations of any Person in
respect of any Hedging Agreement at any time shall be the maximum aggregate
amount (giving effect to any netting agreements) that such Person would be
required to pay if such Hedging Agreement were terminated at such time.

 

“Material Leasehold
Property” means a Leasehold Property which (a) is a retail or super
store or distribution center or (b) has been reasonably determined by the
Required Lenders to be 

 

18

 

of material value as
Collateral or of material importance to the operations of the Credit Parties
after weighing the value of such property as additional Collateral against the
costs and expenses associated with satisfying the requirements of Section 6.13.

 

“Mortgage” means (i) a
security instrument (whether designated as a deed of trust or a mortgage,
leasehold mortgage, collateral assignment of leases and rents or by any similar
title) executed and delivered by any Credit Party in such form as may be
approved by the Administrative Agent and the Lenders in their sole discretion,
in each case with such changes thereto as may be recommended by Administrative
Agent’s or the Lenders’ local counsel based on local laws or customary local
practices, (ii) or at Administrative Agent’s or the Lenders’ option, in
the case of an Additional Mortgaged Property, an amendment to an existing
Mortgage, in form satisfactory to Administrative Agent and the Lenders, adding
such Additional Mortgaged Property to the Real Property Assets encumbered by
such existing Mortgage, in either case as such security instrument or amendment
may be amended, supplemented or otherwise modified from time to time.  “Mortgages” means all such
instruments, including Effective Date Mortgages and any Additional Mortgages,
collectively.

 

“Mortgaged Property”
means an Effective Date Mortgaged Property or an Additional Mortgaged Property.

 

“Multiemployer Plan”
means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

 

“Net
Cash Payments” means,

 

(i)            with
respect to any Casualty Event, the aggregate amount of proceeds of insurance,
condemnation awards and other compensation received by any Credit Party in
respect of such Casualty Event net of (A) reasonable expenses incurred by
any Credit Party in connection therewith and (B) contractually required
repayments of Indebtedness to the extent secured by a Lien on such property and
any income and transfer taxes payable by any Credit Party in respect of such
Casualty Event;

 

(ii)           with
respect to any Disposition or Extraordinary Receipt, the aggregate amount of
all cash payments received by any Credit Party directly or indirectly in
connection with such Disposition or Extraordinary Receipt, whether, with
respect to Dispositions, at the time of such Disposition or after such
Disposition under deferred payment arrangements or Investments entered into or
received in connection with such Disposition (including, without limitation,
Disposition Investments) and, with respect to Extraordinary Receipts, when and
as such receipts are received by a Credit Party; provided that

 

(A)          Net
Cash Payments shall be net of (I) the amount of any legal, title, transfer
and recording tax expenses, commissions and other fees and expenses payable by
any Credit Party in connection with such Disposition or the transaction giving
rise to such Extraordinary Receipt and (II) any Federal, state and local
income or other taxes estimated to be payable by any Credit Party as a result
of such Disposition or the transaction giving rise to such Extraordinary
Receipt, but 

 

19

 

only to the extent that
such estimated taxes are in fact paid to the relevant Federal, state or local
governmental authority within twelve months of the date of such Disposition or
the transaction giving rise to such Extraordinary Receipt; and

 

(B)          Net
Cash Payments shall be net of any repayments by any Credit Party of
Indebtedness to the extent that (I) such Indebtedness is secured by a Lien
on the property that is the subject of a Disposition and (II) the
transferee of (or holder of a Lien on) such property requires that such
Indebtedness be repaid as a condition to the purchase of such property; and

 

(iii)          with
respect to any offering of debt or equity securities, the aggregate amount of
all cash proceeds received by any Credit Party therefrom less all legal,
underwriting and similar fees and expenses incurred in connection therewith.

 

“New York Life Facility” shall mean that certain Second Lien
Note Purchase Agreement, dated as of June 5, 2009, by and among the
Borrower, the affiliates of the Borrower party thereto as guarantors, the Purchasers
(as defined therein) and New York Life Investment Management LLC as
administrative agent for the Purchasers, and the Notes (as defined therein)
issues thereunder.

 

“Non-Financed Capital
Expenditures” means, for any period, all Capital Expenditures made during
such period that have not been funded with the proceeds of purchase money
financing (including, without limitations, capital leases) other than the
proceeds of the Term Loans.

 

“Other Taxes”
means any and all present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment
made hereunder or from the execution, delivery or enforcement of, or otherwise
with respect to, this Agreement and the other Loan Documents, provided that there
shall be excluded from “Other Taxes” all Excluded Taxes.

 

“Parent” means AGI
Holding Corp., a Delaware corporation which holds all the outstanding capital
stock of the Holding Company.

 

“Paying Agent”
shall have the meaning set forth in the Holding Company Notes Indenture.

 

“Permitted Cash Flow
Distribution” means the amount of Restricted Junior Payments permitted to
be made from Excess Cash Flow pursuant to Section 7.6(b).

 

“Permitted
Investments” means:

 

(a)           direct
obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States of America (or by any agency
thereof to the extent such obligations are backed by the full faith and credit
of the United States of America), in each case maturing within one year from
the date of acquisition thereof;

 

20

 

(b)           investments
in commercial paper maturing within 270 days from the date of acquisition
thereof and having, at such date of acquisition, the highest credit rating
obtainable from Standard and Poor’s Ratings Service or from Moody’s Investors
Service, Inc.;

 

(c)           investments
in certificates of deposit, banker’s acceptances and time deposits maturing
within 180 days from the date of acquisition thereof issued or guaranteed by or
placed with, and money market deposit accounts issued or offered by, any
domestic office of any commercial bank organized under the laws of the United
States of America or any State thereof which has a combined capital and surplus
and undivided profits of not less than $250,000,000; and

 

(d)           fully
collateralized repurchase agreements with a term of not more than 30 days for
securities described in clause (a) above and entered into with a financial
institution satisfying the criteria described in clause (c) above.

 

“Permitted Tax
Distributions” means, for so long as the Borrower is an “S corporation” or
a substantially similar pass-through entity for federal income tax purposes,
distributions to the Holding Company (or any successor entity or other entity
that owns, directly or indirectly, all of the outstanding common stock of the
Borrower) in respect of any fiscal year equal to the amount based on reasonable
estimates, of federal, state and local income taxes that the Borrower would be required
to pay with respect to such fiscal year calculated as if, for such fiscal year,
the Borrower were treated as a “C corporation” domiciled in the State of
California rather than as an “S corporation”, and assuming further, solely for
the purpose of the tax calculation herein, that any and all Restricted Junior
Payments made by the Borrower pursuant to Section 7.6(i) or the
interest component of any and all Restricted Junior Payments made by the
Borrower pursuant to Section 7.6(iii) shall be deemed to be payments
of interest by the Borrower (for avoidance of doubt, any amounts accrued in
respect of interest on the Holding Company Notes (but not paid in cash) shall
not be treated as payable by the Borrower).

 

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

 

“Phantom Stock
Accruals” means the amounts shown as liabilities in the Borrower’s general
ledger account captions “Deferred Phantom Compensation” to the extent (i) such
general ledger account is kept and adjusted in the ordinary course of business
and in accordance with GAAP and the Borrower’s past practices, and (ii) such
deferred compensation is payable under “phantom stock agreements” between a
Credit Party and key employees of such Credit Party entered into in the
ordinary course of business and in accordance with the Borrower’s practices
prior to the effective date thereof, in substantially the form of the phantom
stock agreements in existence on the Effective Date, or in such other form as
shall be approved by the Administrative Agent.

 

“Phantom Stock
Agreements” means the phantom stock agreements referred to in the
definition of Phantom Stock Accruals and described in Schedule 4.14
annexed hereto.

 

21

 

“Plan” means any
employee benefit plan (other than a Multiemployer Plan) subject to the
provisions of Title IV of ERISA or Section 412 of the Code or Section 302
of ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or,
if such plan were terminated, would under Section 4069 of ERISA be deemed
to be) an “employer” as defined in Section 3(5) of ERISA.

 

“Pledge Agreement”
means the Amended and Restated Pledge Agreement executed and delivered by all
of the Credit Parties on June 24, 2003 and thereafter in accordance with Section 6.10,
substantially in the form of Exhibit B annexed hereto, as such
agreement may be amended, supplemented or otherwise modified from time to time.

 

“Post-Closing Letter
Agreement” means the letter agreement dated the Effective Date between the
Company and the Agent.

 

“Post-Default Rate”
means, (i) during any period when the Term Loans constitute Base Rate
Loans, a rate per annum equal to the Adjusted Base Rate plus the
Applicable Margin plus two percent (2%), and (ii) during any period
when the Term Loans constitute Eurodollar Loans, a rate per annum equal to the
Three Month LIBOR Rate plus the Applicable Margin plus two
percent (2%).

 

“Prepayment Premium”
means, for any prepayment made during the periods specified below, an amount
equal to the corresponding percentage in the table below multiplied by the
principal amount of such prepayment:

 

	
  Period

  	
   

  	
  Prepayment Premium

  
	
  Effective Date through (and including) the first anniversary of the
  Effective Date:

  	
   

  	
  103%

  
	
  From (but excluding) the first anniversary of the Effective Date
  through (and including) the second anniversary of the Effective Date:

  	
   

  	
  102%

  
	
  From (but excluding) the second anniversary of the Effective Date
  through (and including) the third anniversary of the Effective Date or at
  anytime after the third anniversary of the Effective Date in the event that
  the Term Loans and other Indebtedness hereunder are required to be paid
  pursuant to Section 2.10(b)(ix)  upon the occurrence of a Change of
  Control:

  	
   

  	
  101%

  
	
  Thereafter
  (except as provided with respect to a Change of Control as described above):

  	
   

  	
  100%

  

 

provided that, if at any time prior to the date
that is two years after the Effective Date, the Loans are prepaid in whole or
in part with the Net Cash Proceeds of a sale of equity securities of the
Borrower or any other Credit Party, then the Prepayment Premium applicable to
such prepayment shall be an amount equal to 105% times the principal amount of
such prepayment.

 

“Prime Rate” means
the rate of interest per annum equal to the “Prime Rate” as reported from time
to time in The Wall Street Journal; each change in
the Prime Rate shall be effective from and including the date such change is
reported.  In the event such rate is not
available at 

 

22

 

such time for any reason,
“Prime Rate” shall mean a rate of interest per annum publicly announced from
time to time by any banking institution selected by Administrative Agent as its
prime rate.

 

“Property” means
any interest of any kind in property or assets, whether real, personal or
mixed, and whether tangible or intangible.

 

“PTO” means the
United States Patent and Trademark Office or any successor or substitute office
in which filings are necessary or, in the opinion of the Administrative Agent,
desirable in order to create or perfect Liens on any IP Collateral.

 

“Quarterly Dates”
means the last Business Day of each fiscal quarter of the Credit Parties, the
first of which shall be the first such day after the Effective Date of this
Agreement.

 

“Real Estate Holdings”
has the meaning assigned to such term in Section 5.1(o).

 

“Real Property Asset”
means, at any time of determination, any fee ownership or leasehold interest
then owned by any Credit Party in any real property.

 

“Recorded Leasehold
Interest” means a Leasehold Property with respect to which a Recorded
Document (as hereinafter defined) has been recorded in all places necessary or
desirable, in the Administrative Agent’s reasonable judgment, to give
constructive notice of such Leasehold Property to third-party purchasers and
encumbrancers of the affected real property. 
For purposes of this definition, the term “Recorded Document”
means, with respect to any Leasehold Property, (a) the lease evidencing
such Leasehold Property or a memorandum thereof, executed and acknowledged by
the owner of the affected real property, as lessor, or (b) if such
Leasehold Property was acquired or subleased from the holder of a Recorded
Leasehold Interest, the applicable assignment or sublease document, executed
and acknowledged by such holder, in each case in form sufficient to give such
constructive notice upon recordation and otherwise in form reasonably satisfactory
to the Administrative Agent.

 

“Register” has the
meaning assigned to such term in Section 10.4(b)(iv).

 

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

 

“Related Retail
Sale-Leaseback Proceeds” means the proceeds received after the Effective
Date by the Credit Parties (net of all transactional and related expenses) in
any Sale-Leaseback Transaction involving a Camping World retail outlet or
distribution center (excluding any retail outlet or distribution center if the
costs for the construction of a structure on such property (including costs of
the common building systems) were not funded with Capital Expenditures incurred
by the Credit Parties) acquired or constructed by any such party after the
Effective Date by the Credit Parties, but only to the extent such proceeds do
not exceed the aggregate amount of Capital Expenditures incurred for the purpose
of building out such store.

 

“Rental Obligations”  means the maximum fixed rentals paid or
payable by a lessee under any Operating Lease during a specified period,
excluding amounts paid or payable on account of

 

23

 

 

maintenance, utilities,
ordinary repairs, insurance, taxes, assessments and other similar charges,
whether or not designated as rental or additional rental.

 

“Required Lenders”
means, at any time, Lenders having Loans representing more than 50% of the sum
of the total Loans, at such time.

 

“Restricted Junior
Payment” means (i) any dividend or other distribution, direct or
indirect, on account of any shares of any class of stock of any Credit Party
now or hereafter outstanding, except a dividend payable solely in shares of
that class of stock to the holders of that class, (ii) any redemption,
retirement, sinking fund or similar payment, purchase or other acquisition for
value, direct or indirect, of any shares of any class of stock of any Credit
Party now or hereafter outstanding, (iii) any payment made to retire, or
to obtain the surrender of, any outstanding warrants, options or other rights
to acquire shares of any class of stock of any Credit Party now or hereafter
outstanding, and (iv) any payment or prepayment of principal of, premium,
if any, or interest on, or redemption purchase, retirement, defeasance
(including in-substance or legal defeasance), sinking fund or similar payment
with respect to, any Subordinated Indebtedness.

 

“Sale-Leaseback
Transactions” means any sales or transfers of any real or tangible personal
property owned by any Person in order to lease such property for substantially
the same purpose as the property being sold or transferred; provided that such sale or transfer is at fair market value
and such lease is at fair rental value.

 

“Sarbanes-Oxley Act”
has the meaning assigned to such term in Section 6.1(a).

 

“Secured Parties”
means each Lender, each Affiliate of a Lender which is party to any Hedging
Agreement, if any, and the Administrative Agent.

 

“Security Agreement”
means the Amended and Restated Security Agreement executed and delivered by all
of the Credit Parties on June 24, 2003 and thereafter in accordance with Section 6.10,
substantially in the form of Exhibit C annexed hereto, as such
agreement may be amended, supplemented or otherwise modified from time to time.

 

“Senior Debt”
means the Indebtedness of the Credit Parties as described in clauses (a), (b),
and (c) of the definition of “Indebtedness” (determined on a consolidated
basis without duplication in accordance with GAAP), excluding any Subordinated
Indebtedness.

 

“Senior Subordinated
Notes” means the Borrower’s 9.00% Senior Subordinated Notes due 2012,
including any Additional Notes and Exchange Notes (as each such term is defined
in the Senior Subordinated Note Indenture) with an aggregate initial principal
amount equal to $200,000,000, in each case as issued pursuant to the Senior
Subordinated Note Indenture, as amended, supplemented or otherwise modified in
accordance with the restrictions of Section 7.12.

 

“Senior Subordinated
Note Indenture” means that certain Indenture dated as of February 18,
2004 among the Borrower, the guarantors party thereto and The Bank of New York,
as trustee, as amended, supplemented or otherwise modified in accordance with
the restrictions of Section 7.12.

 

24

 

“Subordinated
Indebtedness” means (a) the Senior Subordinated Notes, and (b)  any
Indebtedness of any Credit Party which matures in its entirety later than the
Loans and by its terms (or by the terms of the instrument under which it is
outstanding and to which appropriate reference is made in the instrument
evidencing such Subordinated Indebtedness) is made subordinate and junior in
right of payment to the Loans and to such Credit Party’s other obligations to
the Lenders hereunder by provisions reasonably satisfactory in form and
substance to the Administrative Agent.

 

“Subsidiary”
means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other
entity the accounts of which would be consolidated with those of the parent in
the parent’s consolidated financial statements if such financial statements
were prepared in accordance with GAAP as of such date, as well as any other
corporation, limited liability company, partnership, association or other
entity (a) of which securities or other ownership interests representing
more than 50% of the ordinary voting power or, in the case of a partnership,
more than 50% of the general partnership interests are, as of such date, owned,
controlled or held, or (b) that is, as of such date, otherwise Controlled,
by the parent or one or more subsidiaries of the parent or by the parent and
one or more subsidiaries of the parent. 
References herein to “Subsidiaries” shall, unless the context
requires otherwise, be deemed to be references to Subsidiaries of the Borrower.

 

“Taxes” means any
and all present or future taxes, levies, imposts, duties, deductions, charges
or withholdings imposed by any Governmental Authority.

 

“Term Loans” has
the meaning assigned to such term in Section 2.1(b).

 

“Term Loan Commitment”
means, with respect to each Term Loan Lender, the agreement of such Lender to
make Term Loans to the Borrower on the Effective Date.  The initial amount of each Term Loan Lender’s
Term Loan Commitment is set forth on Schedule 2.1.  The aggregate original amount of the Term
Loan Commitments is $144,300,000.

 

“Term Loan Lender”
means any Lenders from time to time holding Term Loans, including assignees
under any assignments permitted by Section 10.4.

 

“Term Loan Maturity
Date” The earlier of:  (i) the
fifth (5th) anniversary of the Effective Date; or (ii) the
date that is 90 days prior to the maturity of the Senior Subordinated Notes and
the Holding Company Notes, except that clause (ii) shall not apply if both
the Senior Subordinated Notes and the Holding Company Notes are:  (a) refinanced or exchanged for a
security with a maturity date at least 90 days following the fifth (5th) anniversary of the Effective Date; or (b) discharged
(through conversion to equity or otherwise) without incurring any replacement
Indebtedness.

 

“Test Date” has
the meaning assigned to such term in Section 2. 7(a).

 

“Three Month LIBOR
Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period, a rate per annum equal to the greater of (a) the “London Interbank
Offered Rate” for an interest period of three (3) months published in The
Wall Street Journal or (b) 3.0% per annum. 
The Three Month LIBOR Rate shall be determined as of the Effective Date
for the period from the Effective Date through the last Business Day of March,
2010 and, thereafter on 

 

25

 

each Quarterly Date of
each year and, once determined, shall remain in effect until the next Quarterly
Date.  In the event that such rate is not
available at such time for any reason, then the “LIBOR Rate” with respect to
such Eurodollar Borrowing for such interest period shall be the rate at which
U.S. dollar deposits of $5,000,000, and for a maturity comparable to such
interest period, are offered by a bank selected by the Administrative Agent in
immediately available funds in the London interbank market at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such
Interest Period.  Notwithstanding the Interest Period specified in any
Interest Election Request, the rate used to calculate the LIBOR Rate
for any Interest Period shall never be less than the rate per
annum attributable to a three month LIBOR Interest Period.

 

“Title Company”
means, collectively, Lawyers Title Insurance Company, and one or more other
title insurance companies reasonably satisfactory to the Administrative Agent.

 

“Trademark Security
Agreement” means the Amended and Restated Trademark Security Agreement
executed and delivered by all of Credit Parties on June 24, 2003 and
thereafter in accordance with Section 6.10, substantially in the form of Exhibit D
annexed hereto, as such agreement may be amended, supplemented or otherwise
modified from time to time.

 

“Transactions”
means (a) with respect to the Borrower, the execution, delivery and
performance by the Borrower of the Loan Documents to which it is a party, the
borrowing of Loans and the use of the proceeds thereof, and (b) with
respect to any Credit Party (other than the Borrower), the execution, delivery
and performance by such Credit Party of the Facility Documents to which it is a
party.

 

“Type” when used
in reference to the Term Loans, refers to whether the rate of interest on the
Term Loans is determined by reference to the Adjusted Base Rate or Three Month
LIBOR Rate.

 

“UCC” means the
Uniform Commercial Code (or any similar or equivalent legislation) as in effect
in any applicable jurisdiction.

 

“UCO” means the
United States Copyright Office or any successor or substitute office in which
filings are necessary or, in the opinion of the Administrative Agent, desirable
in order to create or perfect Liens on any IP Collateral.

 

“U.S. dollars” or “$”
refers to lawful money of the United States of America.

 

“USA Patriot Act” shall mean the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism
(USA PATRIOT ACT) Act of 2001, Pub. L. No. 107-56, 115 Stat. 272 (2001),
as the same has been, or shall hereafter be, renewed, extended, amended or
replaced.

 

“Voidable Transfer”
shall have the meaning specified in Section 10.15.”Wholly Owned Subsidiary”
means, with respect to any Person at any date, any corporation, limited
liability company, partnership, association or other entity of which securities
or other ownership interests representing 100% of the equity or ordinary voting
power (other than directors’ qualifying shares) or, in the case of a
partnership, 100% of the general partnership interests are, as of such 

 

26

 

date, directly or
indirectly owned, controlled or held by such Person or one or more Wholly Owned
Subsidiaries of such Person or by such Person and one or more Wholly Owned
Subsidiaries of such Person.

 

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

 

“Working Capital”
means, at any date, the difference between the aggregate current assets and the
aggregate current liabilities (excluding current maturities of long term Indebtedness,
the current portion of Deferred Revenues and the current portion of deferred
tax assets and deferred tax liabilities) of the Credit Parties at such date
(determined on a consolidated basis without duplication in accordance with
GAAP).

 

1.2          Classification of Loans.  For purposes of this Agreement, Loans may be
classified and referred to by Type (e.g., a “Base
Rate Loan” or a “Eurodollar Loan”).

 

1.3          Terms Generally.  The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have
the same meaning and effect as the word “shall”.  Unless the context requires otherwise (a) any
definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other
document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications
set forth herein), (b) any reference herein to any Person shall be
construed to include such Person’s successors and assigns, (c) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to
refer to this Agreement in its entirety and not to any particular provision
hereof, (d) all references herein to Articles, Sections, Exhibits and
Schedules shall be construed to refer to Articles and Sections of, and Exhibits
and Schedules to, this Agreement and (e) the words “asset” and “property”
shall be construed to have the same meaning and effect and to refer to any and
all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.  References
in Articles VI and VII in respect of the affirmative and negative covenants to
be performed by the Credit Parties shall be interpreted to mean, with respect
to Article VI, that the Borrower will, and will cause each of its
Subsidiaries to comply with such covenant, and, with respect to Article VII,
that the Borrower will not, and will not permit any of its Subsidiaries to,
violate such covenant.

 

1.4          Accounting Terms; GAAP.  Except as otherwise expressly provided
herein, all terms of an accounting or financial nature shall be construed in
accordance with GAAP, as in effect from time to time; provided
that, if the Borrower notifies the Administrative Agent that the Borrower
requests an amendment to any provision hereof to eliminate the effect of any
change occurring after the date hereof in GAAP or in the application thereof on
the operation of such provision (or if the Administrative Agent notifies the
Borrower that the Required Lenders request an amendment to any provision hereof
for such purpose), regardless of whether any such notice is given before or
after such change in GAAP or in the application thereof, then such

 

27

 

provision shall be
interpreted on the basis of GAAP as in effect and applied immediately before
such change shall have become effective until such notice shall have been
withdrawn or such provision amended in accordance herewith.

 

ARTICLE
II

 

The
Credits

 

2.1          Commitments.

 

(a)           [Reserved]

 

(b)           Term Loans.  Subject to the terms and conditions set forth
herein, on the Effective Date, each Lender shall make a Term Loan (each such
term loan being herein called a “Term Loan”) to the Borrower in an
amount equal to its Term Loan Commitment minus the Issue Discount.  The principal amounts of the Term Loans which
are repaid or prepaid after the Effective Date pursuant to the terms of this Agreement
may not be reborrowed.

 

(c)           [Reserved]

 

2.2          Loans.

 

(a)           The failure of a Lender to make its
Term Loan required to be made by it on the Effective Date shall not relieve any
other Lender of its obligations hereunder; provided that
the Commitments of the Lenders are several and no Lender shall be responsible
for any other Lender’s failure to make Loans as required.

 

(b)           Subject to Section 2.13, each
Term Loan shall be a Base Rate Loan or Eurodollar Loan in accordance
herewith.  Each Lender at its option may
make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate
of such Lender to make such Loan; provided that
any exercise of such option shall not affect the obligation of the Borrower to
repay such Loan in accordance with the terms of this Agreement.

 

(c)           At the commencement of each Interest
Period for a Eurodollar Borrowing, each Eurodollar Loan shall be in an
aggregate amount at least equal to $500,000 or any greater multiple of
$100,000.  Each Base Rate Loan shall be
in an aggregate amount that is at least equal to $100,000 or any greater
multiple of $100,000.

 

2.3          [Reserved].

 

2.4          [Reserved].

 

2.5          Funding of Borrowings.

 

(a)           Each Lender shall make the Term Loan
to be made by it hereunder on the Effective Date by wire transfer of
immediately available funds by 11:00 a.m. (New York, New York time), to
the account of the Administrative Agent most recently designated by it for such

 

28

 

purpose by notice to the
Lenders.  The Administrative Agent will remit
the amounts so received to an account designated by the Borrower.

 

(b)           [Reserved]

 

(c)           [Reserved]

 

2.6          Interest Elections.

 

(a)           Each Term Loan initially shall be a
Eurodollar Loan.  Thereafter, the
Borrower may elect to convert all (but not less than all) Term Loans to a
different Type subject to this Section 2.6 and Section 2.13.

 

(b)           To make an election pursuant to this Section 2.6,
the Borrower shall notify the Administrative Agent of such election by
telephone (i) in the case of Eurodollar Borrowing, not later than 11:00 a.m.
(New York, New York time), three Business Days before the applicable Interest
Payment Date, or (ii) in the case of Base Rate Borrowing, not later than
11:00 a.m. (New York, New York time), one Business Day before the
applicable Interest Payment Date.  Each
such telephonic Interest Election Request shall be irrevocable and shall be
confirmed promptly by hand delivery or telecopy to the Administrative Agent of
a written Interest Election Request in a form approved by the Administrative
Agent and signed by the Borrower.

 

(c)           Each telephonic and written Interest
Election Request shall specify the following information in compliance with Section 2.2:

 

(i)            the
effective date of the election made pursuant to such Interest Election Request,
which shall be a Quarterly Date; and

 

(ii)           whether
the resulting Borrowing is to be a Base Rate Borrowing or a Eurodollar
Borrowing.

 

(d)           Promptly following receipt of an
Interest Election Request, the Administrative Agent shall advise each Lender of
the details thereof.

 

(e)           Notwithstanding any contrary
provision hereof, if a Default has occurred and is continuing and the
Administrative Agent, at the request of the Required Lenders, so notifies the
Borrower, then, so long as a Default is continuing (i) no outstanding
Borrowing may be converted to a Eurodollar Borrowing and (ii) unless
repaid, each Eurodollar Borrowing shall be converted to a Base Rate Borrowing
at the next Interest Period applicable thereto.

 

2.7          Termination of Commitments.

 

(a)           [Reserved]

 

(b)           [Reserved]

 

(c)           [Reserved]

 

29

 

(d)           The Term Loan Commitments shall
automatically terminate on the making of the Loans to the Borrower on the
Effective Date.

 

2.8          [Reserved].

 

2.9          Repayment of Loans;
Evidence of Debt.

 

(a)           [Reserved]

 

(b)           The Borrower hereby unconditionally
promises to pay on each anniversary of the Effective Date, commencing with the
first such date occurring after the Effective Date, to the Administrative Agent
for the account of the Lenders quarterly principal payments in an aggregate
amount equal to the Term Loan Commitment of the Term Loans on the Effective
Date times 0.25%.  To the extent not
previously paid, all Term Loans shall be due and payable on the Term Loan
Maturity Date.

 

(c)           Each Lender shall maintain in
accordance with its usual practice an account or accounts evidencing the
indebtedness of the Borrower to such Lender resulting from each Loan made by
such Lender, including the amounts of principal and interest payable and paid
to such Lender from time to time hereunder.

 

(d)           The Administrative Agent shall
maintain accounts in which it shall record (i) the amount of each Loan
made hereunder, the Type thereof and the Interest Period applicable thereto, (ii) the
amount of any principal or interest due and payable or to become due and
payable from the Borrower to each Lender hereunder and (iii) the amount of
any sum received by the Administrative Agent hereunder for the account of the
Lenders and each Lender’s share thereof.

 

(e)           The entries made in the accounts
maintained pursuant to paragraph (c) or (d) of this Section 2.9
shall be prima facie evidence of the existence and amounts of the obligations
recorded therein; provided that the failure of any
Lender or the Administrative Agent to maintain such accounts or any error
therein shall not in any manner affect the obligation of the Borrower to repay
the Loans in accordance with the terms of this Agreement.

 

(f)            Any Lender may request that the Loan
made by it be evidenced by a promissory note. 
In such event, the Borrower shall prepare, execute and deliver to such
Lender a promissory note payable to the order of such Lender (or its nominee
record holder) (or, if requested by such Lender, to such Lender (or its nominee
record holder) and its registered assigns) and in a form approved by the
Administrative Agent.  Thereafter, the
Loan evidenced by such promissory note and interest thereon shall at all times
(including after assignment pursuant to Section 10.4) be represented by one
or more promissory notes in such form payable to the order of the payee named
therein (or, if such promissory note is a registered note, to such payee and
its registered assigns) unless, in connection with an assignment of all or any
portion of a promissory note and interest thereon, the assignee informs the
Administrative Agent in writing that it does not wish that its Loan be
evidenced by a promissory note.

 

30

 

2.10        Prepayment of Loans.

 

(a)           Optional Prepayments.  The Borrower shall have the right at any time
and from time to time to prepay any Borrowing in whole or in part, subject to
prior notice in accordance with paragraph (d) of this Section 2.10; provided that each prepayment in respect of the Term Loans
shall be in an amount that is at least equal to $1,000,000 or any greater
multiple of $500,000.  Each optional
prepayment of Term Loans shall be applied to reduce all remaining unpaid
installments thereof in inverse order of maturity.

 

(b)           Mandatory Prepayments.  Subject to the provisions of subsection (i) below,
the Borrower shall make prepayments of the Loans hereunder as follows:

 

(i)            Casualty
Events.  Upon the date 90 days
following the receipt by any Credit Party of the proceeds of insurance, condemnation
award or other compensation in respect of any Casualty Event affecting any
property of any Credit Party (or upon such earlier date as such Credit Party,
as the case may be, shall have determined not to repair or replace the property
affected by such Casualty Event), the Borrower shall prepay the Loans in an
aggregate amount, if any, equal to 100% of the Net Cash Payments from such
Casualty Event not theretofore applied or committed to be applied to the repair
or replacement of such property (it being understood that if Net Cash Payments
committed to be applied are not in fact applied within six months of the
respective Casualty Event, then such proceeds shall be applied to the
prepayment of Loans no later than the fifteenth (15th)
Business Day thereafter, such prepayment to be effected in the manner and to
the extent specified in Section 2.10(c).

 

(ii)           Offering
of Debt or Equity.  Without limiting
the obligation of the Borrower to obtain the consent of the Required Lenders to
any incurrence of Indebtedness or sale of securities not otherwise permitted
hereunder, the Borrower agrees, on or prior to the closing of any sale of debt
or equity securities by any Credit Party after the Effective Date, to deliver
to the Administrative Agent a statement certified by a Financial Officer of the
Borrower, in form and detail reasonably satisfactory to the Administrative
Agent, of the estimated amount of the Net Cash Payments of such sale of
securities that will (on the date of such sale of securities) be received by
any Credit Party in cash and the Borrower will prepay the Loans hereunder, upon
the date of such sale of securities, in an aggregate amount equal to (x) in
the case of a sale of equity securities, 50% of the actual amount of the Net
Cash Payments of such sale of equity securities received by any Credit Party in
an aggregate cumulative amount in excess of $20,000,000, and (y) in the case of
the incurrence of Indebtedness (other than Indebtedness permitted hereunder to
be incurred), 100% of the actual amount of the Net Cash Payments of such
incurrence of Indebtedness received by any Credit Party, in each case, such
prepayment to be effected in each case in the manner and to the extent
specified in Section 2.10(c) and no later than the fifteenth (15th) Business Day following the date of each such
receipt.

 

(iii)          Sale
of Assets.  Without limiting the
obligation of the Borrower to obtain the consent of the Required Lenders to any
Disposition not 

 

31

 

otherwise permitted
hereunder, the Borrower agrees, on or prior to the occurrence of any
Disposition (other than a Sale-Leaseback Transaction) by any Credit Party, to
deliver to the Lenders a statement certified by a Financial Officer of the
Borrower, in form and detail reasonably satisfactory to the Required Lenders,
of the estimated amount of the Net Cash Payments of such Disposition that will
(on the date of such Disposition) be received by any Credit Party in cash,
indicating on such certificate, whether the Borrower intends to reinvest such
Net Cash Payments or will be prepaying the Loans, as hereinafter provided, and
the Borrower will be obligated to either (A) reinvest such Net Cash
Payments within 180 days after receipt (or, if within such 180 day period the
Borrower or any Credit Party enters into contracts related to the reinvestment
of such Net Cash Payments, such longer period not to exceed 365 days after the
original date of receipt of such Net Cash Payments as is contemplated by such
contracts) into assets used in a line of business permitted hereunder or (B) prepay
the Loans hereunder), as follows:

 

(x)           upon
the date of such Disposition, or on the date (the “Reinvestment Date”)
which is 180 days after such date (or such longer period not to exceed 365 days
as contemplated by contracts related to the reinvestment of such Net Cash
Payments) if the Borrower had indicated on the certificate delivered as
hereinabove required that it intended to reinvest the Net Cash Payments of such
Disposition, in an aggregate amount equal to 100% of the amount of such Net
Cash Payments, to the extent received by any Credit Party in cash on the date
of such Disposition or, if applicable, the Reinvestment Date to the extent of
any Net Cash Payments not so reinvested; and

 

(y)           thereafter,
quarterly, on the date of the delivery by the Borrower to the Administrative
Agent pursuant to Section 6.1 of the financial statements for any
quarterly fiscal period or fiscal year, to the extent any Credit Party shall
receive Net Cash Payments during the quarterly fiscal period ending on the date
of such financial statements in cash under deferred payment arrangements or
Disposition Investments entered into or received in connection with any
Disposition, an amount equal to (A) 100% of the aggregate amount of such
Net Cash Payments minus (B) any transaction expenses associated
with Dispositions and not previously deducted in the determination of Net Cash
Payments plus (or minus, as the case may be) (C) any other
adjustment received or paid by any Credit Party pursuant to the respective
agreements giving rise to Dispositions and not previously taken into account in
the determination of the Net Cash Payments; provided that
if prior to the date upon which the Borrower would otherwise be required to
make a prepayment under this clause (y) with respect to any quarterly
fiscal period the aggregate amount of such Net Cash Payments (after giving
effect to the adjustments provided for in this clause (y)) shall exceed
$4,000,000, then the Borrower shall within three Business Days make a
prepayment under this clause (y) in an amount equal to such required
prepayment.

 

32

 

Prepayments of
Loans shall be effected in each case in the manner and to the extent specified
in Section 2.10(c); provided that
if at the time of any such Disposition an Event of Default shall have occurred
and be continuing, the Credit Parties shall not have the right to reinvest any
Net Cash Payments and shall instead prepay the Loans by 100% of the amount of
Net Cash Payments received from such Disposition.

 

Notwithstanding
anything herein to the contrary if and to the extent that any Net Cash Payments
would otherwise be required to be used to repay the Senior Subordinated Notes
or the Holding Company Notes or purchase or repurchase any notes issued under
the Senior Subordinated Notes Indenture or the Holding Company Notes Indenture,
the Borrower shall prepay the Loans.

 

(iv)          Excess
Cash Flow.  Not later than the date
90 days after the end of each fiscal year of the Borrower commencing with the
fiscal year ending December 31, 2010 and for each fiscal year thereafter,
the Borrower shall prepay the Loans as provided in Section 2.10(c) in
an amount equal to either 75% of Excess Cash Flow for such fiscal year if the
Consolidated Senior Leverage Ratio for such fiscal year is equal to or greater
than 2.0 to 1, or 50% of Excess Cash Flow for such fiscal year if the
Consolidated Senior Leverage Ratio for such fiscal year is less than 2.0 to 1;
provided, however, that the calculation of Excess Cash Flow for fiscal year
2010 shall be determined on a pro forma basis to include the first quarter of
the fiscal year 2010.

 

(v)           [Reserved]

 

(vi)          [Reserved]

 

(vii)         [Reserved]

 

(viii)        Extraordinary
Receipts.  Without duplication of any
other amount referred to in this Section 2.10(b), within fifteen (15)
Business Days following receipt by any Credit Party of any Extraordinary
Receipts in an amount equal to the Net Cash Payments received by such Credit
Party with respect to such Extraordinary Receipts.

 

(ix)          Upon
the occurrence of a Change of Control, Borrower will prepay the Loans in full
hereunder together with the applicable Prepayment Premium plus accrued and
unpaid interest to the extent required by Section 2.12 and accrued and
unpaid expenses and fees.

 

(x)           [Reserved].

 

(c)   Application. In the event of any
mandatory prepayment of Loans pursuant to subsections (b)(i) through
(b)(iv) of this Section 2.10, the proceeds of such prepayment shall
be applied to the prepayment of the Term Loans, ratably in accordance with the
then-outstanding aggregate amounts thereof, such prepayments to be applied to
the remaining unpaid installments thereof in inverse order of maturity.

 

33

 

 

(d)           Notification of Prepayments.  The Borrower shall notify the Administrative
Agent by telephone (confirmed by telecopy) of any prepayment hereunder (i) in
the case of prepayment of a Eurodollar Borrowing, not later than 11:00 a.m.
(New York, New York time), three Business Days before the date of prepayment or
(ii) in the case of prepayment of a Base Rate Borrowing, not later than
11:00 a.m. (New York, New York time), one Business Day before the date of
prepayment.  Each such notice shall be
irrevocable and shall specify the prepayment date and the principal amount of
each Borrowing or portion thereof to be prepaid.  Each partial prepayment of any Term Loan
under paragraph (a) of this Section 2.10 shall be in an amount that
would be permitted in the case of a Term Loan of the same Type as provided in Section 2.2.

 

(e)           Prepayments Accompanied by
Premium, Interest and other Payments. 
Prepayments pursuant to Section 2.10(a), Section 2.10(b)(ii) with
respect to incurrence of Indebtedness only, Section 2.10(b)(viii) and
2.10(b)(ix) shall be accompanied by the applicable Prepayment Premium,
accrued interest to the extent required by Section 2.12 and any
compensation required by Section 2.15. 
All prepayments pursuant to Section 2.10(b) (other than those
set forth in the preceding sentence) shall be accompanied by accrued interest
to the extent required by Section 2.12 and any compensation required by Section 2.15.

 

2.11        Fees.

 

(a)           [Reserved]

 

(b)           [Reserved]

 

(c)           The Borrower agrees to pay to the
Administrative Agent, (i) for its own account, and the fees set forth in
the Administrative Agent Fee Letter at the times and in amounts specified
therein, and (ii) for the account of each Lender, fees payable in the
amounts and at the times separately agreed in writing between the Borrower and
the Lenders.

 

(d)           All fees payable hereunder shall be
paid on the dates due, in immediately available funds.  Fees paid shall not be refundable under any
circumstances, absent manifest error in the determination thereof.

 

2.12        Interest.

 

(a)           The Loans comprising each Base Rate
Borrowing shall bear Cash Interest at a rate per annum equal to the Adjusted
Base Rate plus the Applicable Margin.

 

(b)           The Loans comprising each Eurodollar
Borrowing shall bear Cash Interest at a rate per annum equal to the Three Month
LIBOR Rate plus the Applicable Margin.

 

(c)           Notwithstanding the foregoing, (i) all
amounts which are not paid when due shall bear interest until paid in full at
the Post-Default Rate and (ii) during the period when any Event of Default
shall have occurred and be continuing (and the Administrative Agent, acting on
the instructions of the Required Lenders, shall have notified the Borrower that
the Post-Default Rate shall apply), the principal of all Loans hereunder shall
bear interest, after as well as before judgment, at the Post-Default Rate.

 

34

 

(d)           Accrued interest on each Loan shall
be payable in arrears on each Interest Payment Date for such Loan; provided that (i) interest accrued at the Post-Default
Rate shall be payable on demand, (ii) in the event of any repayment or
prepayment of any Loan, accrued interest on the principal amount repaid or
prepaid shall be payable on the date of such repayment or prepayment, (iii) in
the event of any conversion of any Eurodollar Loan on an Interest Payment Date,
accrued interest on such Loan shall be payable on the effective date of such
conversion.  Cash Interest on each Term
Loan shall be payable on the Interest Payment Date applicable to such Term
Loan, except as otherwise provided in this Agreement.  Unless the context otherwise requires, for
all purposes hereof, references to the “principal amount” of the Term Loans
refers to the face amount of the Term Loans and not gross proceeds funded
hereunder.

 

(e)           All interest hereunder shall be
computed on the basis of a year of 360 days, and shall be payable on each
Interest Payment Date for the actual number of days elapsed (including the
first day but excluding the last day). 
The applicable Adjusted Base Rate or Three Month LIBOR Rate shall be
determined by the Administrative Agent, and such determination shall be
conclusive absent manifest error.

 

(f)            In no contingency or event
whatsoever shall the aggregate of all amounts deemed interest hereunder or
under any promissory note and charged or collected pursuant to the terms of
this Agreement or pursuant to such note exceed the highest permissible under
any law which a court of competent jurisdiction shall, in a final
determination, deem applicable hereto. 
In the event that such a court determines that the Lender has charged or
received interest hereunder in excess of the highest applicable rate, the
Lender shall promptly refund such excess interest to Borrower and such rate
shall automatically be reduced to the maximum rate permitted by such law.

 

2.13        Alternate Rate of Interest.  If prior to the commencement of any Interest
Period for a Eurodollar Borrowing:

 

(a)           the Administrative Agent determines
(which determination shall be conclusive absent manifest error) that adequate
and reasonable means do not exist for ascertaining the Three Month LIBOR Rate
for such Interest Period; or

 

(b)           if the Administrative Agent is
advised by the Required Lenders, that the Three Month LIBOR Rate for such
Interest Period will not adequately and fairly reflect the cost to such Lenders
of making or maintaining their Term Loans included in such Borrowing for such
Interest Period;

 

then the Administrative
Agent shall give notice thereof to the Borrower and the affected Lenders by
telephone or telecopy as promptly as practicable thereafter and, until the
Administrative Agent notifies the Borrower and such Lenders that the
circumstances giving rise to such notice no longer exist, any Interest Election
Request that requests the conversion of any such Borrowing to, or continuation
of any such Borrowing as, a Eurodollar Borrowing shall be ineffective.

 

35

 

2.14        Increased Costs.

 

(a)           If any Change in Law shall:

 

(i)            impose,
modify or deem applicable any reserve, special deposit or similar requirement
against assets of, deposits with or for the account of, or credit extended by,
any Lender (except any such reserve requirement reflected in the Three Month
LIBOR Rate); or

 

(ii)           impose
on any Lender or the London interbank market any other condition affecting this
Agreement or Eurodollar Loans made by such Lender;

 

and the result of any of
the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Loan (or of maintaining its obligation to make any
such Loan) or to reduce the amount of any sum received or receivable by such
Lender hereunder (whether of principal, interest or otherwise), then the
Borrower will pay to such Lender such additional amount or amounts as will
compensate such Lender for such additional costs incurred or reduction
suffered.

 

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

 

(c)           A certificate of a Lender setting
forth the amount or amounts necessary to compensate such Lender or its holding
company, as the case may be, as specified in paragraph (a) or (b) of
this Section 2.14 shall be delivered to the Borrower and shall be
conclusive so long as it reflects a reasonable basis for the calculation of the
amounts set forth therein and does not contain any manifest error.  The Borrower shall pay such Lender the amount
shown as due on any such certificate within 10 days after receipt thereof.

 

(d)           Failure or delay on the part of any
Lender to demand compensation pursuant to this Section 2.14 shall not
constitute a waiver of such Lender’s right to demand such compensation; provided that the Borrower shall not be required to
compensate a Lender pursuant to this Section 2.14 for any increased costs
or reductions incurred more than six months prior to the date that such Lender
notifies the Borrower of the Change in Law giving rise to such increased costs
or reductions and of such Lender’s intention to claim compensation therefor; provided  further that,
if the Change in Law giving rise to such increased costs or reductions is retroactive,
then the six-month period referred to above shall be extended to include the
period of retroactive effect thereof.

 

36

 

2.15        Break Funding Payments.

 

(a)           In the event of (i) the payment
of any principal of any Eurodollar Loan other than on the last day of an
Interest Period applicable thereto (including as a result of an Event of
Default), (ii) the conversion of any Eurodollar Loan other than on the
last day of the Interest Period applicable thereto, (iii) the failure to
borrow, convert, continue or prepay any Loan on the date specified in any
notice delivered pursuant hereto (regardless of whether such notice is
permitted to be revocable and is revoked in accordance herewith) or (iv) the
assignment of any Eurodollar Loan other than on the last day of the Interest
Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.18,
then, in any such event, the Borrower shall compensate each Lender for the
loss, cost and expense attributable to such event.

 

(b)           In the case of a Eurodollar Loan, the
loss to any Lender attributable to any such event shall be deemed to include an
amount determined by such Lender to be equal to the excess, if any, of

 

(i)            the
amount of interest that such Lender would pay for a deposit equal to the
principal amount of such Loan for the period from the date of such payment,
conversion, failure or assignment to the last day of the then current Interest
Period for such Loan (or, in the case of a failure to borrow, convert or
continue, the duration of the Interest Period that would have resulted from
such borrowing, conversion or continuation) if the interest rate payable on
such deposit were equal to the Three Month LIBOR Rate for such Interest Period,

 

over

 

(ii)           the
amount of interest that such Lender would earn on such principal amount for
such period if such Lender were to invest such principal amount for such period
at the interest rate that would be bid by such Lender (or an affiliate of such
Lender) for U.S. dollar deposits from other banks in the eurodollar market at
the commencement of such period.

 

(c)           A certificate of any Lender setting
forth any amount or amounts that such Lender is entitled to receive pursuant to
this Section 2.15 shall be delivered to the Borrower and shall be
conclusive absent manifest error.  The
Borrower shall pay such Lender the amount shown as due on any such certificate
within 10 days after receipt thereof.

 

2.16        Taxes.

 

(a)           Any and all payments by or on account
of any obligation of the Borrower hereunder shall be made free and clear of and
without deduction for any Indemnified Taxes or Other Taxes; provided that if the Borrower shall be required to deduct
any Indemnified Taxes or Other Taxes from such payments, then (i) the sum
payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section 2.16) the Administrative Agent, or any Lender (as the case
may be) receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions and (iii) the
Borrower shall pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.

 

37

 

(b)           In addition, the Borrower shall pay
any Other Taxes to the relevant Governmental Authority in accordance with
applicable law.

 

(c)           The Borrower shall indemnify the
Administrative Agent and each Lender, within 10 days after written demand
therefor, for the full amount of any Indemnified Taxes or Other Taxes
(including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section 2.16) paid or payable
by the Administrative Agent or such Lender, as the case may be (and any
penalties, interest and reasonable expenses arising therefrom or with respect
thereto during the period prior to the Borrower making the payment demanded
under this paragraph (c)), whether or not such Indemnified Taxes or Other Taxes
were correctly or legally imposed or asserted by the relevant Governmental
Authority.  A certificate as to the
amount of such payment or liability delivered to the Borrower by a Lender, or
by the Administrative Agent on its own behalf or on behalf of a Lender, shall
be conclusive absent manifest error.

 

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

 

(e)           Any Foreign Lender that is entitled
to an exemption from or reduction of withholding tax under the law of the
jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall
deliver to the Borrower (with a copy to the Administrative Agent), at the time
or times prescribed by applicable law or reasonably requested by the Borrower,
such properly completed and executed documentation prescribed by applicable law
as will permit such payments to be made without withholding or at a reduced
rate.

 

2.17        Payments Generally:  Pro Rata Treatment; Sharing of Set-Offs.

 

(a)           The Borrower shall make each payment
required to be made by it hereunder (whether of principal, interest, fees, or
under Section 2.14, 2.15 or 2.16, or otherwise) prior to 11:00 a.m.
(New York, New York time), on the date when due, in immediately available
funds, without set-off or counterclaim. 
Any amounts received after such time on any date may, in the discretion
of the Administrative Agent, be deemed to have been received on the next
succeeding Business Day for purposes of calculating interest thereon.  All such payments shall be made to the
Administrative Agent at such of its offices as set forth in Section 10.1 or as
the Administrative Agent shall notify the relevant parties from time to time,
and except that payments pursuant to Sections 2.14, 2.15, 2.16 and 10.3 shall
be made directly to the Persons entitled thereto.  The Administrative Agent shall distribute any
such payments received by it for the account of any other Person to the
appropriate recipient promptly following receipt thereof, and the Borrower
shall have no liability in the event timely or correct distribution of such
payments is not so made.  If any payment
hereunder shall be due on a day that is not a Business Day, the date for
payment shall be extended to the next succeeding Business Day, and, in the case
of any payment accruing interest, interest thereon shall be payable for the
period of such extension.  All payments
hereunder shall be made in U.S. dollars.

 

38

 

(b)           Except to the extent otherwise
provided herein:  (i) each Term Loan
from the Lenders under Section 2.1 shall be made pursuant to Schedule 2.1;
(ii) each payment or prepayment by the Borrower of principal of Loans
shall be made for account of the relevant Lenders pro rata in accordance with
the respective unpaid principal amounts of the Loans held by such Lenders; (iv) each
payment by the Borrower of interest on Loans shall be made for the account of
the relevant Lenders pro rata in accordance with the amounts of interest on
such Loans then due and payable to such Lenders.

 

(c)           [Reserved]

 

(d)           Unless the Administrative Agent shall
have received notice from the Borrower prior to the date on which any payment
is due to the Administrative Agent for the account of the Lenders entitled
thereto (the “Applicable Recipient”) hereunder that the Borrower will
not make such payment, the Administrative Agent may assume that the Borrower
has made such payment on such date in accordance herewith and may, in reliance
upon such assumption, distribute to the Applicable Recipient the amount
due.  In such event, if the Borrower has
not in fact made such payment, then each Applicable Recipient severally agrees
to repay to the Administrative Agent forthwith on demand the amount so
distributed to such Applicable Recipient with interest thereon, for each day
from and including the date such amount is distributed to it to but excluding
the date of payment to the Administrative Agent, at the Federal Funds Effective
Rate.

 

(e)           [Reserved]

 

(f)            If
at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, interest and fees
then due under the Collateral Documents under any circumstances, including
during, or as a result of the exercise by the Administrative Agent of remedies
under the Collateral Documents and applicable law, such funds shall be applied
with the following priorities:

 

first, to the extent applicable, to pay the
costs and expenses of the Administrative Agent including the costs and expenses
of collection, sale or other realization on the Collateral or other exercise of
remedies under the Collateral Documents and the fees and expenses of its agents
and counsel, and all expenses incurred and all advances made by the
Administrative Agent in connection therewith, and to the payment of the Credit
Parties’ obligations to the Administrative Agent under Section 10.3
hereof,

 

second, to pay interest and fees then due under
the Loan Documents to the Lenders ratably in accordance with the amounts of
interest and fees then due to such Lenders, and

 

third, to pay principal under the Loan
Documents and in respect of Hedging Agreement Obligations, in each case, then
due to the Administrative Agent or the Lenders ratably in accordance with the
amounts of principal and Hedging Agreement Obligations then due to the
Administrative Agent or such Lenders.

 

39

 

2.18        Mitigation Obligations;
Replacement of Lenders.

 

(a)           If any Lender requests compensation
under Section 2.14, or if the Borrower is required to pay any additional
amount to any Lender or any Governmental Authority for the account of any
Lender pursuant to Section 2.16, then such Lender shall use reasonable
efforts to designate a different lending office for funding or booking its
Loans hereunder or to assign its rights and obligations, hereunder to another of
its offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable
pursuant to Section 2.14 or 2.16, as the case may be, in the future and (ii)
would not subject such Lender to any unreimbursed cost or expense and would not
otherwise be disadvantageous to such Lender. 
The Borrower hereby agrees to pay all reasonable costs and expenses
incurred by any Lender in connection with any such designation or assignment.

 

(b)           If any Lender requests compensation
under Section 2.14, or if the Borrower is required to pay any additional
amount to any Lender or any Governmental Authority for the account of any
Lender pursuant to Section 2.16, or if any Lender defaults in its
obligation to fund Loans hereunder, then the Borrower may, at its sole expense
and effort, upon notice to such Lender and the Administrative Agent, require
such Lender to assign and delegate, without recourse (in accordance with and
subject to the restrictions contained in Section 10.4), all its interests,
rights and obligations under this Agreement to an assignee that shall assume
such obligations (which assignee may be another Lender, if a Lender accepts
such assignment); provided that (i) the
Borrower shall have received the prior written consent of the Administrative
Agent, which consents shall not unreasonably be withheld or delayed, (ii) such
Lender shall have received payment of an amount equal to the outstanding
principal of its Loans, accrued interest thereon, accrued fees and all other
amounts payable to it hereunder, from the assignee (to the extent of such
outstanding principal and accrued interest and fees) or the Borrower (in the
case of all other amounts) and (iii) in the case of any such assignment
resulting from a claim for compensation under Section 2.14 or payments
required to be made pursuant to Section 2.16, such assignment will result
in a reduction in such compensation or payments.  A Lender shall not be required to make any
such assignment and delegation if, prior thereto, as a result of a waiver by
such Lender or otherwise, the circumstances entitling the Borrower to require
such assignment and delegation cease to apply.

 

ARTICLE
III

 

Guarantee
by Guarantors

 

3.1          The Guarantee.  Each Guarantor hereby jointly and severally
guarantees to each Lender, and the Administrative Agent and their respective
successors and assigns the prompt payment in full when due (whether at stated
maturity, by acceleration or otherwise) of the principal of and interest on the
Loans made by the Lenders to the Borrower, and all other amounts from time to
time owing to the Lenders or the Administrative Agent by the Borrower hereunder
or under any other Loan Document, and all obligations of the Borrower to any
Lender under any Hedging Agreement or arising from or related to cash
management services, in each case strictly in accordance with the terms thereof
(such obligations being herein collectively called the “Guaranteed
Obligations”).  Each Guarantor hereby
further agrees that if the Borrower shall fail to pay in full when due (whether
at stated maturity, by acceleration or otherwise) any of the 

 

40

 

Guaranteed Obligations,
each Guarantor will promptly pay the same, without any demand or notice
whatsoever, and that in the case of any extension of time of payment or renewal
of any of the Guaranteed Obligations, the same will be promptly paid in full
when due (whether at extended maturity, by acceleration or otherwise) in
accordance with the terms of such extension or renewal.

 

3.2          Obligations Unconditional.  The obligations of each Guarantor under Section 3.1
are absolute and unconditional irrespective of the value, genuineness,
validity, regularity or enforceability of this Agreement, the other Loan
Documents or any other agreement or instrument referred to herein or therein,
or any substitution, release or exchange of any other guarantee of or security
for any of the Guaranteed Obligations, and, to the fullest extent permitted by applicable
law, irrespective of any other circumstance whatsoever that might otherwise
constitute a legal or equitable discharge or defense of a surety or guarantor,
it being the intent of this Section 3.2 that the obligations of the
Guarantors hereunder shall be absolute and unconditional under any and all
circumstances.  Without limiting the
generality of the foregoing, it is agreed that the occurrence of any one or
more of the following shall not alter or impair the liability of the Guarantors
hereunder which shall remain absolute and unconditional as described above:

 

(i)            at
any time or from time to time, without notice to such Guarantors, the time for
any performance of or compliance with any of the Guaranteed Obligations shall
be extended, or such performance or compliance shall be waived;

 

(ii)           any
of the acts mentioned in any of the provisions hereof or of the other Loan
Documents or any other agreement or instrument referred to herein or therein
shall be done or omitted;

 

(iii)          the
maturity of any of the Guaranteed Obligations shall be accelerated, or any of
the Guaranteed Obligations shall be modified, supplemented or amended in any
respect, or any right hereunder or under the other Loan Documents or any other
agreement or instrument referred to herein or therein shall be waived or any
other guarantee of any of the Guaranteed Obligations or any security therefor
shall be released or exchanged in whole or in part or otherwise dealt with; or

 

(iv)          any
lien or security interest granted to, or in favor of, the Administrative Agent
or any Lender or Lenders as security for any of the Guaranteed Obligations
shall fail to be perfected.

 

The Guarantors hereby
expressly waive diligence, presentment, demand of payment, protest and all
notices whatsoever, and any requirement that the Administrative Agent or any
Lender exhaust any right, power or remedy or proceed against the Borrower
hereunder or under the other Loan Documents or any other agreement or
instrument referred to herein or therein, or against any other Person under any
other guarantee of, or security for, any of the Guaranteed Obligations.

 

3.3          Reinstatement.  The obligations of each Guarantor under this Article III
shall be automatically reinstated if and to the extent that for any reason any
payment by or on behalf of

 

41

 

the Borrower in respect
of the Guaranteed Obligations is rescinded or must be otherwise restored by any
holder of any of the Guaranteed Obligations, whether as a result of any
proceedings in bankruptcy or reorganization or otherwise, and each of the
Guarantors agrees that it will indemnify the Administrative Agent and each
Lender on demand for all reasonable costs and expenses (including fees and
expenses of counsel) incurred by the Administrative Agent or any Lender in
connection with such rescission or restoration, including any such costs and
expenses incurred in defending against any claim alleging that such payment
constituted a preference, fraudulent transfer or similar payment under any
bankruptcy, insolvency or similar law.

 

3.4          Subrogation.  Each Guarantor hereby waives all rights of
subrogation or contribution, whether arising by contract or operation of law
(including, without limitation, any such right arising under the Federal Bankruptcy
Code of 1978, as amended) or otherwise by reason of any payment by it pursuant
to the provisions of this Article III and further agrees with the Borrower
for the benefit of each of its creditors (including, each Lender and the
Administrative Agent) that any such payment by it shall constitute a
contribution of capital by such Guarantor to the Borrower.

 

3.5          Remedies.  Each Guarantor agrees that, as between such
Guarantor and the Lenders, the obligations of the Borrower hereunder may be
declared to be forthwith due and payable as provided in Section 8.1 (and
shall be deemed to have become automatically due and payable in the
circumstances provided in Section 8.1 for purposes of Section 3.1
notwithstanding any stay, injunction or other prohibition preventing such
declaration (or such obligations from becoming automatically due and payable)
as against the Borrower and that, in the event of such declaration (or such
obligations being deemed to have become automatically due and payable), such
obligations (whether or not due and payable by the Borrower) shall forthwith
become due and payable by such Guarantor for purposes of Section 3.1.

 

3.6          Instrument for the Payment
of Money.  Each Guarantor
hereby acknowledges that the guarantee in this Article III constitutes an
instrument for the payment of money, and consents and agrees that any Lender or
the Administrative Agent, at its sole option, in the event of a dispute by the
Guarantors in the payment of any moneys due hereunder, shall have the right to
summary judgment or such other expedited procedure as may be available for a
suit on a note or other instrument for the payment of money.

 

3.7          Continuing Guarantee.  The guarantee in this Article III is a
continuing guarantee, and shall apply to all Guaranteed Obligations whenever
arising.

 

3.8          Rights of Contribution.  The Guarantors hereby agree, as between
themselves, that if any Guarantor shall become an Excess Funding Guarantor (as
defined below) by reason of the payment by such Guarantor of any Guaranteed Obligations,
each other Guarantor shall, on demand of such Excess Funding Guarantor (but
subject to the next sentence), pay to such Excess Funding Guarantor an amount
equal to such Guarantor’s Pro Rata Share (as defined below and determined, for
this purpose, without reference to the properties, debts and liabilities of
such Excess Funding Guarantor) of the Excess Payment (as defined below) in
respect of such Guaranteed Obligations. 
The payment obligation of a Guarantor to any Excess Funding Guarantor
under this Section 3.8 shall be subordinate and subject in right of
payment to the prior payment in full of the obligations of such Guarantor under
the other provisions of this Article III

 

42

 

and such Excess Funding
Guarantor shall not exercise any right or remedy with respect to such excess
until payment and satisfaction in full of all of such obligations.

 

For purposes of this Section 3.8,
(i) “Excess Funding Guarantor” means, in respect of any Guaranteed
Obligations, a Guarantor that has paid an amount in excess of its Pro Rata
Share of such Guaranteed Obligations, (ii) “Excess Payment” means,
in respect of any Guaranteed Obligations, the amount paid by an Excess Funding
Guarantor in excess of its Pro Rata Share of such Guaranteed Obligations and (iii) “Pro
Rata Share” means, for any Guarantor, the ratio (expressed as a percentage)
of (x) the amount by which the aggregate present fair saleable value of
all properties of such Guarantor (excluding any shares of stock of, or
ownership interest in, any other Guarantor) exceeds the amount of all the debts
and liabilities of such Guarantor (including contingent, subordinated,
unmatured and unliquidated liabilities, but excluding the obligations of such
Guarantor hereunder and any obligations of any other Guarantor that have been
Guaranteed by such Guarantor) to (y) the amount by which the aggregate
fair saleable value of all properties of all of the Credit Parties exceeds the
amount of all the debts and liabilities (including contingent, subordinated,
unmatured and unliquidated liabilities, but excluding the obligations of the
Borrower and the Guarantors hereunder and under the other Loan Documents) of
all of the Credit Parties, determined (A) with respect to any Guarantor
that is a party hereto on the Effective Date, as of the Effective Date, and (B) with
respect to any other Guarantor, as of the date such Guarantor becomes a
Guarantor hereunder.

 

3.9          General Limitation on
Guarantee Obligations.  In any
action or proceeding involving any state or non-U.S. corporate law, or any
state or Federal or non-U.S. bankruptcy, insolvency, reorganization or other
law affecting the rights of creditors generally, if the obligations of any
Guarantor under Section 3.1 would otherwise, taking into account the
provisions of Section 3.8, be held or determined to be void, invalid or
unenforceable, or subordinated to the claims of any other creditors, on account
of the amount of its liability under Section 3.1, then, notwithstanding
any other provision hereof to the contrary, the amount of such liability shall,
without any further action by such Guarantor, any Lender, the Administrative
Agent or any other Person, be automatically limited and reduced to the highest
amount that is valid and enforceable and not subordinated to the claims of
other creditors as determined in such action or proceeding.

 

ARTICLE
IV

 

Representations
and Warranties

 

Each
of the Credit Parties represents and warrants to the Lenders and the
Administrative Agent, as to itself and each other Credit Party, that:

 

4.1          Organization; Powers.  Each Credit Party is duly organized, validly
existing and in good standing under the laws of its jurisdiction of
organization.  Each Credit Party has all
requisite power and authority under its organizational documents to carry on
its business as now conducted and, except where the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect, is qualified to do business in, and is in good
standing in, every jurisdiction where such qualification is required.

 

43

 

 

4.2                                 Authorization; Enforceability. 
The Transactions are within the corporate power of each Credit Party and
have been duly authorized by all necessary corporate and, if required,
stockholder action on the part of such Credit Party.  This Agreement, the Collateral Documents, and
the other Loan Documents have been duly authorized, executed and delivered by
each Credit Party that is a party thereto and constitute legal, valid and
binding obligations of such Credit Party, enforceable in accordance with their respective
terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium
or other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in
equity or at law.

 

4.3                                 Governmental Approvals; No
Conflicts.  The Transactions (a) do not require any
consent or approval of, registration or filing with, or any other action by,
any Governmental Authority, (b) will not violate any applicable law,
policy or regulation or the charter, by-laws or other organizational documents
of any Credit Party or any order of any Governmental Authority, (c) will
not violate or result in a default under any indenture, agreement or other
instrument binding upon any Credit Party, or any of its assets, or give rise to
a right thereunder to require any payment to be made by any Credit Party, and (d) except
for the Liens created by the Collateral Documents, will not result in the
creation or imposition of any Lien on any asset of the Credit Parties.

 

4.4                                 Financial Condition; No Material
Adverse Change.

 

(a)                                  The Borrower has heretofore delivered to
the Lenders the following financial statements:

 

(i)                                     the audited consolidated balance sheet
and statements of earnings (loss), stockholders’ deficit and cash flows of the
Holding Company and its Subsidiaries as of and for the fiscal year ended December 31,
2008, accompanied by an opinion of Ernst & Young LLP, independent
public accountants; and

 

(ii)                                  the unaudited consolidated and
consolidating statements of income, retained earnings and cash flows of the
Credit Parties for the month most recently ended and for which monthly
financial statements are available and for the period ending as of the end of
such month, and the related consolidated and consolidating balance sheets of
the Credit Parties as at the end of such period, setting forth in each case in
comparative form the corresponding consolidated and consolidating figures for
the corresponding period in the preceding fiscal year (except that, in the case
of balance sheets, such comparison shall be to the last day of the prior fiscal
year).

 

Such financial statements
present fairly, in all material respects, the respective actual consolidated
financial position and results of operations and cash flows of the respective
entities as of such respective dates and for such periods in accordance with
GAAP, subject to year-end audit adjustments and the absence of footnotes in the
case of such unaudited statements.

 

44

 

(b)                                 Since December 31, 2008, there has
been no change in the business, assets, liabilities, operations or financial
condition, of the Credit Parties which would reasonably be expected to have a
Material Adverse Effect.

 

(c)                                  None of the Credit Parties has on the
Effective Date any contingent liabilities, liabilities for taxes, unusual
forward or long-term commitments or unrealized or anticipated losses from any
unfavorable commitments in each case that are material, except as referred to
or reflected or provided for in the balance sheets as at December 31, 2009
referred to above or as otherwise expressly provided in this Agreement or the
financial statements described in this Section 4.4.

 

4.5                                 Properties.

 

(a)                                  Each of the Credit Parties has good and
marketable title to, or valid, subsisting and enforceable leasehold interests
in, all its real and personal property material to its business.

 

(b)                                 Each of the Credit Parties owns, or is
licensed to use, all trademarks, service marks, tradenames, copyrights, patents
and other intellectual property (“Proprietary Rights”) material to its
business, and the use thereof by the Credit Parties does not infringe upon the
rights of any other Person, except for any such infringements that,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect.  All
registered trademarks, service marks, copyrights and patents, together with the
domain names, web sites, and web site registrations which are owned by or
licensed to any Credit Party, are listed on Schedule 4.5 annexed hereto
(collectively “Registered Rights”). 
Except as set forth on Schedule 4.5 annexed hereto, all of the
Registered Rights have been duly registered in, filed in or issued by the PTO
or UCO, as the case may be, a domain name registrar or other corresponding
offices of other jurisdictions as identified on such schedule, and have been
properly maintained and renewed in accordance with all applicable provisions of
law and administrative regulations in the United States or in each such other
jurisdiction, as applicable, except where the failure to so register, file,
maintain or renew would not reasonably be expected to result in a Material
Adverse Effect.

 

(c)                                  As of the Effective Date, Schedule 4.5
annexed hereto contains a true, accurate and complete list of (i) all
owned Real Property Assets and (ii) all leases, subleases or assignments
of leases (together with all amendments, modifications, supplements, renewals
or extensions of any thereof) affecting each Real Property Asset of any Credit
Party, regardless of whether such Credit Party is the landlord or tenant
(whether directly or as an assignee or successor in interest) under such lease,
sublease or assignment.  Expect as
specified in Schedule 4.5 annexed hereto, each agreement listed in
clause (ii) of the immediately preceding sentence is in full force and
effect and the Borrower has no knowledge of any default that has occurred and
is continuing thereunder, and each such agreement constitutes the legal, valid
and binding obligation of each applicable Credit Party, enforceable against
such Credit Party in accordance with its terms, except as enforcement may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
relating to or limiting creditors’ rights generally or by equitable principles.

 

45

 

4.6                                 Litigation and Environmental
Matters.

 

(a)                                  There are no actions, suits or
proceedings by or before any arbitrator or Governmental Authority pending
against or, to the knowledge of any of the Credit Parties, threatened against
or affecting the Credit Parties (i) as to which there is a reasonable
possibility of an adverse determination and that, if adversely determined,
could reasonably be expected, individually or in the aggregate, to result in a
Material Adverse Effect (other than the Disclosed Matters) or (ii) that
involve any of the Basic Documents or the Transactions.

 

(b)                                 Except for the Disclosed Matters and
except with respect to any other matters that, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect, none of the Credit Parties (i) has failed to comply with any
Environmental Law or to obtain, maintain or comply with any permit, license or
other approval required under any Environmental Law, (ii) has become
subject to any Environmental Liability, (iii) has received notice of any
claim with respect to any Environmental Liability or any inquiry, allegation,
notice or other communication from any Governmental Authority concerning its
compliance with any Environmental Law or (iv) knows of any basis for any
Environmental Liability.

 

(c)                                  Since the date of this Agreement, there
has been no change in the status of the Disclosed Matters that, individually or
in the aggregate, has resulted in, or materially increased the likelihood of, a
Material Adverse Effect.

 

4.7                                 Compliance with Laws and
Agreements.  Each of the Credit Parties is in compliance
with all laws, regulations, policies and orders of any Governmental Authority
applicable to it or its property and all indentures, agreements and other
instruments binding upon it or its property, except where the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect.

 

4.8                                 Investment and Holding Company
Status.  No Credit Party nor any of their respective
Subsidiaries is (a) an “investment company” as defined in, or subject to
regulation under, the Investment Company Act of 1940, as amended, (b) a “holding
company” as defined in, or subject to regulation under, the Public Utility
Holding Company Act of 1935, as amended or (c) a “bank holding company” as
defined in, or subject to regulation under, the Bank Holding Company Act of
1956, as amended.

 

4.9                                 Taxes. 
Each of the Credit Parties and their respective Subsidiaries has timely
filed or caused to be filed all Tax returns and reports required to have been
filed and has paid or caused to be paid all Taxes required to have been paid by
it, except (a) Taxes that are being contested in good faith by appropriate
proceedings and for which such Credit Party has set aside on its books adequate
reserves with respect thereto in accordance with GAAP or (b) to the extent
that the failure to do so could not reasonably be expected to result in a
Material Adverse Effect. No adjustment relating to any tax returns has been
proposed formally or informally by any Governmental Authority and, to the
knowledge of each Credit Party no basis exists for any such adjustment.  The charges, accruals, and reserves on the
books of the Credit Parties in respect of taxes are, in the reasonable judgment
of the Credit Parties, adequate.  No
Credit Party has been audited, or has knowledge of any pending audit, by the
Internal Revenue Service or any other 

 

46

 

taxing authority.  No Credit Party has executed or filed with
the Internal Revenue Service or any other Governmental Authority any agreement
or other document extending, or having the effect of extending, the period for
assessment or collection of any taxes. 
None of the Credit Parties and their respective predecessors is liable
for any taxes:  (i) under any
agreement (including any tax sharing agreements) or (ii) to each Credit
Party’s knowledge, as a transferee.  As
of the Effective Date, no Credit Party has agreed, or been requested, to make
any adjustment under Code Section 481(a), by reason of a change in
accounting method or otherwise, which would have a Materially Adverse Effect.

 

4.10                           ERISA. 
No ERISA Event has occurred or is reasonably expected to occur that,
when taken together with all other such ERISA Events for which liability is
reasonably expected to occur, could reasonably be expected to result in a
Material Adverse Effect.  The present
value of all accumulated benefit obligations under each Plan (based on the
assumptions used for purposes of Statement of Financial Accounting Standards No. 87)
did not, as of the date of the most recent financial statements reflecting such
amounts, exceed by more than $100,000 the fair market value of the assets of
such Plan, and the present value of all accumulated benefit obligations of all
underfunded Plans (based on the assumptions used for purposes of Statement of
Financial Accounting Standards No. 87) did not, as of the date of the most
recent financial statements reflecting such amounts, exceed by more than
$100,000 the fair market value of the assets of all such underfunded
Plans.  No Credit Party has a present
intention to terminate any Plan.

 

4.11                           Disclosure. 
As of the Effective Date to the Credit Parties have disclosed to each
Lender, and the Administrative Agent, all agreements, instruments and corporate
or other restrictions to which any Credit Party is subject, and all other
matters known to any Credit Party, that, individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect.  The senior management structure of the
Borrower is as set forth on Schedule 4.11 annexed hereto.  The information, reports, financial
statements, exhibits and schedules furnished in writing by or on behalf of the
Credit Parties to the Administrative Agent or any Lender in connection with the
negotiation, preparation or delivery of this Agreement and the other Loan
Documents or included herein or therein or delivered pursuant hereto or
thereto, when taken as a whole do not contain any untrue statement of material
fact or omit to state any material fact necessary to make the statements herein
or therein, in light of the circumstances under which they were made, not
misleading.  All written information
furnished after the date hereof by the Credit Parties to the Administrative
Agent and the Lenders in connection with this Agreement and the transactions
contemplated hereby will be true, complete and accurate in every material
respect, or (in the case of projections) based on reasonable estimates, on the
date as of which such information is stated or certified.  There is no fact known to the Borrower that
could reasonably be expected to have a Material Adverse Effect that has not
been disclosed herein or in a report, financial statement, exhibit, schedule,
disclosure letter or other writing furnished to the Lenders for use in
connection with the transactions contemplated hereby or thereby.

 

4.12                           Capitalization. 
As of the Effective Date, the capital structure and ownership of the
Borrower are correctly described in Schedule 4.12.  The authorized, issued and outstanding
capital stock of the Borrower consists, on the Effective Date, of the common
stock described on Schedule 4.12, all of which is duly and validly
issued and outstanding, fully paid and nonassessable.  Except as set forth in Schedule 4.12  and with respect to the Phantom Stock 

 

47

 

Agreements, as of the
Effective Date, (x) there are no outstanding Equity Rights with respect to
the Borrower and (y) there are no outstanding obligations of any Credit
Party to repurchase, redeem, or otherwise acquire any shares of capital stock
of any Credit Party nor are there any outstanding obligations of the any Credit
Party to make payments to any Person, such as “phantom stock” payments, where
the amount thereof is calculated with reference to the fair market value or
equity value of the any Credit Party.

 

4.13                           Subsidiaries.

 

(a)                                  Set forth in Schedule 4.13 is a
complete and correct list of all of the Subsidiaries of the Credit Parties as
of the Effective Date together with, for each such Subsidiary, (i) the
jurisdiction of organization of such Subsidiary, (ii) each Person holding
ownership interests in such Subsidiary and (iii) the nature of the
ownership interests held by each such Person and the percentage of ownership of
such Subsidiary represented by such ownership interests.  Except as disclosed in Schedule 4.13, (x) each
Credit Party and its respective Subsidiaries owns, free and clear of Liens
(other than Liens created pursuant to the Collateral Documents), and has the
unencumbered right to vote, all outstanding ownership interests in each Person
shown to be held by it in Schedule 4.13, (y) all of the issued and
outstanding capital stock of each such Person organized as a corporation is
validly issued, fully paid and nonassessable and (z) there are no
outstanding Equity Rights with respect to such Person.

 

(b)                                 Except as set forth in Schedule 4.13,
as of the date of this Agreement, none of the Subsidiaries of the Borrower is
subject to any indenture, agreement, instrument or other arrangement containing
any provision of the type described in Section 7.8, other than any such
provision the effect of which has been unconditionally, irrevocably and
permanently waived.

 

4.14                           Material Indebtedness, Liens and
Agreements.

 

(a)                                  Schedule 4.14 hereto is a complete and correct list,
as of the date of this Agreement, of all Material Indebtedness or any extension
of credit (or commitment for any extension of credit) to, or guarantee by, any
Credit Party the aggregate principal or face amount of which equals or exceeds
(or may equal or exceed) $1,000,000, and the aggregate principal or face amount
outstanding or that may become outstanding with respect thereto is correctly
described in Schedule 4.14.

 

(b)                                 Schedule 4.14 hereto is a complete and correct list,
as of the date of this Agreement, of each Lien securing Indebtedness of any
Person the aggregate principal or face amount of which equals or exceeds (or
may equal or exceed) $100,000 and covering any property of the Credit Parties,
and the aggregate Indebtedness secured (or which may be secured) by each such
Lien and the Property covered by each such Lien is correctly described in Schedule 4.14.

 

(c)                                  Schedule 4.14 hereto is a complete and correct list,
as of the date of this Agreement, of each contract and arrangement to which any
Credit Party is a party for which breach, nonperformance, cancellation or
failure to renew would have a Material Adverse Effect.

 

48

 

(d)                                 Schedule 4.14 hereto is a complete and correct list,
as of the date of this Agreement, of each Phantom Stock Agreement and each
other contract and arrangement between 
any Credit Party and its senior managers.

 

True and complete copies
of each agreement listed on the appropriate part of Schedule 4.14
have been delivered to the Administrative Agent, together with all amendments,
waivers and other modifications thereto. 
All such agreements are valid, subsisting, in full force and effect, are
currently binding and will continue to be binding upon each Credit Party that
is a party thereto and, to the best knowledge of the Credit Parties, binding
upon the other parties thereto in accordance with their terms.  The Credit Parties are not in default under
any such agreements.

 

4.15                           Holding Company Notes Indenture. The Holding Company Notes Indenture is
in full force and effect, without amendment (other than the Supplemental
Indentures described in the definition thereof).  All obligations of the Credit Parties
hereunder and under the other Loan Documents and obligations of the Holding
Company under the Holding Company Collateral Documents are permitted to be
incurred under the Holding Company Notes Indenture.

 

4.16                           Compliance with Regulations T, U
and X.  No Credit Party is engaged principally in or
has as one of its important activities in the business of extending credit for
the purpose of purchasing or carrying, and no Credit Party owns or presently
intends to acquire, any “margin security” or “margin stock” as defined in
Regulations T, U and X of the Board of Governors of the Federal Reserve System
(herein called “margin stock”). 
None of the proceeds of the Loans will be used, directly or indirectly,
for the purpose of purchasing or carrying any margin stock or for the purpose
of reducing or retiring any Funded Debt which was originally incurred to
purchase or carry margin stock or for any other purpose which might constitute
this transaction a “purpose credit” within the meaning of said Regulations T, U
and X.  None of any Credit Party or any
bank acting on its behalf has taken or will take any action which might cause
this Agreement or any other Loan Documents to violate Regulation T, U or X or
any other regulation of the Board of Governors of the Federal Reserve System or
to violate the SEA, in each case as now in effect or as the same may hereafter
be in effect.  If so requested by the
Administrative Agent, the Credit Parties will furnish the Administrative Agent
with (i) a statement or statements in conformity with the requirements of
Federal Reserve Form U-1 referred to in Regulation U of said Board of
Governors and (ii) other documents evidencing its compliance with the
margin regulations, including an opinion of counsel in form and substance
satisfactory to the Administrative Agent. 
Neither the making of the Loans nor the use of proceeds thereof will
violate, or be inconsistent with, the provisions of Regulation T, U or X of
said Board of Governors.

 

4.17                           Burdensome Restrictions. 
No Credit Party is a party to or otherwise bound by any indenture, loan
or credit agreement or any lease or other agreement or instrument or subject to
any charter, corporate or partnership restriction which would foreseeably have
a Material Adverse Effect.

 

4.18                           Force Majeure. 
Since the date of the most recent financial statements referred to in Section 4.4(a)(i) to
the Effective Date, the business, properties and other assets of the Credit
Parties have not been materially and adversely affected in any way as the
result of any fire or 

 

49

 

other casualty, strike,
lockout or other labor trouble, embargo, sabotage, confiscation, contamination,
riot, civil disturbance, activity of armed forces or act of God.

 

4.19                           Labor and Employment Matters.

 

(a)          As of the date of this Agreement, except as set forth
on Schedule 4.19, (A) no employee of any Credit Party is
represented by a labor union, no labor union has been certified or recognized
as a representative of any such employee; (B) there are no pending or, to
the Borrower’s knowledge, threatened representation campaigns, elections or
proceedings; (C) no Credit Party has any knowledge of any strikes,
slowdowns or work stoppages of any kind, or threats thereof; and (D) no
Credit Party has engaged in, admitted committing or been held to have committed
any unfair labor practice, in each case except where such occurrence would not
reasonably be expected to have a Material Adverse Effect.

 

(b)         As of the date of this Agreement, Schedule 4.19
sets forth all material employment contracts for members of senior management
of the Credit Parties under which any Credit Party thereof has any obligations
to provide compensation or remuneration of any kind (other than obligations to
make current wage or salary payments that are terminable at will without
notice).

 

(c)          Except as set forth on Schedule 4.19, each
Credit Party has at all times complied in all material respects, and are in
material compliance with, all applicable laws, rules and regulations
respecting employment, wages, hours, compensation, benefits, and payment and
withholding of taxes in connection with employment, except where the failure to
so comply would not reasonably be expected to have a Material Adverse Effect.

 

(d)         Except as set forth on Schedule 4.19,
except as could not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect, the Credit Parties have at all times
complied with, and are in compliance with, all applicable laws, rules and
regulations respecting occupational health and safety, whether now existing or
subsequently amended or enacted, including the Occupational Safety &
Health Act of 1970, 29 U.S.C. Section 651 et seq. and the state analogies
thereto, all as amended or superseded from time to time, and any common law
doctrine relating to worker health and safety.

 

4.20                           Senior Indebtedness 
The obligations of the Credit Parties hereunder and under the other Loan
Documents constitute “Senior Indebtedness” and “Designated Senior Indebtedness”
under and as defined in the Senior Subordinated Note Indenture.  The subordination provisions of the Senior
Subordinated Note Indenture are enforceable by each Lender and each other
holder of any obligations of the Credit Parties under the Loan Documents in
accordance with their terms.

 

4.21                           Collateral Documents  (a) The
Collateral Documents are or, in the case of each Collateral Document delivered
pursuant to Sections 6.10 and 6.13, will, upon execution and delivery thereof,
be effective to create in favor of the Administrative Agent for the benefit of
the Secured Parties (or in favor of the relevant Secured Parties directly, as
applicable), legal, valid and enforceable Liens on, and security interests in,
the Collateral described therein to the extent intended to be created thereby
and (i) when financing statements and other filings in appropriate 

 

50

 

form are filed in the
offices specified on the perfection certificates of each Credit Party found in Schedule
I to the Security Agreement and registration achieved (if applicable), (ii) when
all appropriate filings, recordings, endorsements, notarizations, stamping,
registrations and/or notifications are made as required under applicable Law
and (iii) upon the taking of possession or control by the Administrative
Agent of such Collateral with respect to which a security interest may be
perfected only by possession or control (which possession or control shall be
given to the Administrative Agent to the extent possession or control by the
Administrative Agent is required by the Security Agreement), the Liens created
by the Collateral Documents shall constitute fully perfected Liens on, and
security interests in (to the extent intended to be created thereby), all
right, title and interest of the grantors in such Collateral, in each case
subject to no Liens other than Liens permitted under Section 7.2 hereof.

 

(b) When
the Trademark Security Agreement and Copyright Security Agreement is properly
filed in the PTO and UCO, respectively, the Liens created by such Trademark and
Copyright Security Agreements shall constitute fully perfected Liens on, and
security interests in, all right, title and interest of the grantors thereunder
(to the extent intended to be created thereby) in the trademarks and copyrights
to the extent that a security interest can be created under Article 9 of
the UCC and can be perfected by the filing of a financing statement in
accordance therewith, except as the enforcement thereof may be limited by
applicable bankruptcy, insolvency or similar laws affecting the enforcement of
rights of creditors generally and except to the extent that enforcement of
rights and remedies set forth therein may be limited by equitable principles
(regardless of whether enforcement is considered in a court of law or a
proceeding in equity), in each case subject to no Liens other than Liens
permitted hereunder (it being understood that subsequent recordings in the PTO
and UCO may be necessary to perfect a Lien on trademarks and copyrights
acquired by the grantors thereof.

 

4.22                           Insurance Policies. 
Set forth in Schedule 4.22 is a complete and correct summary of
all of the insurance policies for the Borrower.

 

4.23                           Solvency. 
As of the Effective Date (after giving effect to the transactions
contemplated by the Loan Documents and the Camping World Credit Agreement) (i) the
property of each Credit Party, at a fair valuation on a going concern basis,
will exceed its debt; (ii) the capital of each Credit Party will not be
unreasonably small to conduct its business; and (iii) no Credit Party will
have incurred debts, or have intended to incur debts, beyond its ability to pay
such debts as they mature.  For purposes
of this Section 4.23, “debt” shall mean any liability on a claim,
and “claim” shall mean (A) the right to payment, whether or not such right
is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured,
unmatured, undisputed, legal, equitable, secured or unsecured, or (B) the
right to an equitable remedy for breach of performance if such breach gives
rise to a right to payment, whether or not such right to an equitable remedy is
reduced to judgment, fixed, contingent, matured, unmatured, undisputed, secured
or unsecured.

 

4.24                           Broker’s or Finder’s Commissions. 
No broker’s or finder’s fee or commission will be payable with respect
to the execution and delivery of this Agreement and the other Loan Documents,
and no other similar fees or commissions will be payable by the Credit Parties
for any other services rendered to the Credit Parties ancillary to the credit
transactions contemplated herein.

 

51

 

4.25                           OSHA. 
All of the Credit Parties operations are conducted in compliance, in all
material respects, with all applicable rules and regulations promulgated
by the Occupational Safety and Health Administration of the United States
Department of Labor.

 

4.26                           Anti-Terrorism Laws.

 

(i)                                     Anti-Terrorism Laws. 
No Credit Party nor any Affiliate of any Borrower Party is in violation
of any Anti-Terrorism Law or engages in or conspires to engage in any
transaction that evades or avoids, or has the purpose of evading or avoiding,
or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism
Law.

 

(ii)                                  Executive Order No. 13224. 
No Borrower Party nor any Affiliate of any Borrower Party is any of the
following (each a “Blocked Person”):

 

(A)      a Person that is listed in the annex to,
or is otherwise subject to the provisions of, Executive Order No. 13224;

 

(B)        a Person owned or controlled by, or
acting for or on behalf of, any Person that is listed in the annex to, or is
otherwise subject to the provisions of, Executive Order No. 13224;

 

(C)        a Person or entity with which any bank or
other financial institution is prohibited from dealing or otherwise engaging in
any transaction by any Anti-Terrorism Law;

 

(D)       a Person or entity that commits,
threatens or conspires to commit or supports “terrorism” as defined in
Executive Order No. 13224;

 

(E)         a Person or entity that is named as a “specially
designated national” on the most current list published by OFAC at its official
website or any replacement website or other replacement official publication of
such list; or

 

(F)         a Person or entity who is affiliated with
a Person or entity listed above.

 

No Credit Party
nor any Affiliate of any Credit Party (x) conducts any business or engages
in making or receiving any contribution of funds, goods or services to or for
the benefit of any Blocked Person or (y) deals in, or otherwise engages in
any transaction relating to, any property or interests in property blocked pursuant
to Executive Order No. 13224.

 

(iii)                               OFAC.  No Credit
Party nor any Affiliate of any Credit Party is in violation of any rules or
regulations promulgated by OFAC or of any economic or trade sanctions or
engages in administered and enforced by OFAC or conspires to engage in any
transaction that evades or avoids, or has the purpose of evading or avoiding,
or attempts to violate, any of the prohibitions set forth in any rules or
regulations promulgated by OFAC.

 

52

 

ARTICLE V

 

Conditions

 

5.1                                 Effective Date. 
The obligations of the Lenders to make Loans hereunder shall not become
effective until the date on which each of the following conditions is satisfied
(or waived in accordance with the Intercreditor Agreement):

 

(a)                                  Counterparts of Agreement. 
The Administrative Agent shall have received from each party hereto
either (i) a counterpart of this Agreement signed on behalf of such party
or (ii) written evidence satisfactory to the Administrative Agent and the
Lenders (which may include telecopy transmission of a signed signature page of
this Agreement) that such party has signed a counterpart of this Agreement.

 

(b)                                 Notes.  Each Lender
so requesting shall have received a duly completed and executed promissory note
for such Lender.

 

(c)                                  Corporate Structure. 
The corporate organizational structure, capital structure and ownership
of the Credit Parties, shall be as set forth on Schedules 4.12 and 4.13
annexed hereto.

 

(d)                                 Corporate Matters. 
The Administrative Agent shall have received such documents and
certificates as the Lenders or their counsel may reasonably request relating to
the organization, existence and good standing of each Credit Party, the
authorization of the Transactions and any other legal matters relating to the
Credit Parties, this Agreement, the other Loan Documents or the Transactions,
all in form and substance reasonably satisfactory to the Lenders and their
counsel.

 

(e)                                  Security Interests in Personal and Mixed
Property.  To the extent not otherwise satisfied
pursuant to Section 5.1(f), the Administrative Agent shall have received
evidence satisfactory to it and the Lenders that the Credit Parties shall have
taken or caused to be taken all such actions, executed and delivered or caused
to be executed and delivered all such agreements, documents and instruments,
and made or caused to be made all such filings and recordings (other than the
filing or recording of items described in clauses (iii), (iv) and (v) below)
that may be necessary or, in the opinion of the Administrative Agent and the
Lenders, desirable in order to create in favor of the Administrative Agent, for
the benefit of the Lenders, a valid and (upon such filing and recording)
perfected First Priority security interest in the entire personal and mixed
property Collateral. Such actions shall include, without limitation, the
following:

 

(i)                                     Collateral Documents. 
Delivery to the Administrative Agent of all the Collateral Documents,
duly executed by the applicable Credit Party (or, in the case of the Holding
Company Collateral Documents, the Holding Company), together with accurate and
complete schedules to all such Collateral Documents;

 

(ii)                                  Stock Certificates and Instruments. 
To the extent not previously delivered to the Administrative Agent in
connection with the Existing Credit Agreement, delivery to the Administrative
Agent of (A) certificates (which

 

53

 

certificates shall
be accompanied by irrevocable undated stock powers, duly endorsed in blank and
otherwise satisfactory in form and substance to the Administrative Agent and
the Lenders) representing all capital stock pledged pursuant to the Pledge Agreement
(or, in the case of the Holding Company, the Holding Company Collateral
Documents) and (B) all promissory notes or other instruments (duly
endorsed, where appropriate, in a manner satisfactory to the Administrative
Agent and the Lenders) evidencing any Collateral;

 

(iii)                               Lien Searches and UCC Termination Statements. 
Delivery to the Administrative Agent of (A) the results of a recent
search, by a Person satisfactory to the Lenders, of all effective UCC financing
statements and fixture filings and all judgment and tax lien filings which may
have been made with respect to any personal or mixed property of any Credit
Party, together with copies of all such filings disclosed by such search, and (B) UCC
termination statements duly executed by all applicable Persons for filing in
all applicable jurisdictions as may be necessary to terminate any effective UCC
financing statements or fixture filings disclosed in such search (other than
any such financing statements or fixture filings in respect of Liens permitted
to remain outstanding pursuant to the terms of this Agreement);

 

(iv)                              UCC Financing Statements and Fixture
Filings.  Delivery to the Administrative Agent of UCC
financing statements (or, where applicable, amendments to existing UCC
financing statements filed against the Credit Parties in favor of the
Administrative Agent) and, where appropriate, fixture filings (or, where
applicable, amendments to existing fixture filings filed against the Credit
Parties in favor of the Administrative Agent), with respect to all personal and
mixed property Collateral of such Credit Party, for filing in all jurisdictions
as may be necessary or, in the opinion of the Administrative Agent and the
Lenders, desirable to perfect the security interests created in such Collateral
pursuant to the Collateral Documents (or maintain the continued perfection of
the security interest in such Collateral granted to the Administrative Agent in
connection with the Existing Credit Agreement);

 

(v)                                 PTO and UCO Cover Sheets, Etc. 
Delivery to the Administrative Agent of all cover sheets or other
documents or instruments required to be filed with the PTO and UCO in order to
create or perfect Liens in respect of any new IP Collateral;

 

(vi)                              Perfection Certificates. 
Delivery to the Administrative Agent by each Credit Party of a
perfection certificate dated the Effective Date substantially in the form of Schedule
I to the form of Security Agreement annexed hereto duly executed by a
Financial Officer of the Borrower;

 

(vii)                           Opinions of Local Counsel. 
Delivery to the Administrative Agent of an opinion of counsel (which
counsel shall be reasonably satisfactory to the Administrative Agent and the
Lenders) under the laws of each jurisdiction in which any Credit Party is
organized or any property or mixed property Collateral is located with respect
to the creation and perfection (or if applicable, the continuation of the
attachment and perfection) of the security interests in favor of the
Administrative 

 

54

 

Agent in such
Collateral and such other matters governed by the laws of such jurisdiction
regarding such security interests as the Administrative Agent may reasonably
request, in each case in form and substance reasonably satisfactory to the
Administrative Agent and the Lenders; and

 

(viii)                        New York Life Facility.  Delivery to
the Administrative Agent and the Lenders of evidence satisfactory to it and the
Required Lenders that (x) any Liens granted pursuant to the New York Life
Facility shall have been released and terminated.

 

(f)                                    Effective
Date Mortgages; Effective Date Mortgage Policies; Etc.  The Administrative Agent shall have received from each
Credit Party:

 

(i)                                     Effective Date Mortgages. 
Fully executed and notarized Mortgages or, if applicable, amendments to
existing mortgages (each a “Effective Date Mortgage” and, collectively,
the “Effective Date Mortgages”), in proper form for recording in all
appropriate places in all applicable jurisdictions, encumbering each Real
Property Asset listed in Schedule 4.5 (and so identified thereon)
annexed hereto (each a “Effective Date Mortgaged Property” and,
collectively, the “Effective Date Mortgaged Properties”);

 

(ii)                                  Recorded Leasehold Interests. 
In the case of each Real Property Asset listed in clause (ii) of Schedule
4.5 annexed hereto, copies of all leases between any Credit Party and any
landlord or tenant;

 

(iii)                               Landlord Consents and Estoppels. 
In the case of each Real Property Asset listed in clause (ii) of Schedule
4.5, a Landlord Consent and Estoppel with respect thereto and where
required by the terms of any lease, the consent of the mortgagee, ground lessor
or other party;

 

(iv)                              Matters Relating to Flood Hazard
Properties.  (A) Evidence reasonably acceptable to
the Administrative Agent and the Lenders as to whether any Effective Date
Mortgaged Property is a Flood Hazard Property and (B) if there are any
such Flood Hazard Properties, evidence that the applicable Credit Party has
obtained flood insurance with respect to each Flood Hazard Property in amounts
approved by the Administrative Agent and the Lenders, or evidence acceptable to
the Administrative Agent and the Lenders that such insurance is not available;

 

(v)                                 Environmental Indemnity. 
A hazardous materials indemnity agreement, substantially in the form of Exhibit E
annexed hereto, with respect to the indemnification of the Administrative Agent
and the Lenders for any liabilities that may be imposed on or incurred by any
of them as a result of any Hazardous Materials;

 

(vi)                              Title Insurance.  (A) ALTA
mortgagee title insurance policies or unconditional commitments therefor and
title updates and endorsements (the “Effective Date Mortgage Policies”)
issued by the Title Company with respect to the Effective Date Mortgaged
Properties listed (and marked with an asterisk) in 

 

55

 

Schedule 4.5 annexed hereto, in amounts not less than
the respective amounts designated therein with respect to any particular
Effective Date Mortgaged Properties, insuring fee simple title to, or a valid
leasehold interest in, each such Effective Date Mortgaged Property vested in
such Credit Party and assuring the Administrative Agent that the applicable
Effective Date Mortgages create valid and enforceable First Priority mortgage
Liens on the respective Effective Date Mortgaged Properties encumbered thereby,
subject only to a standard exceptions as may be reasonably acceptable by the
Administrative Agent and the Lenders, which Effective Date Mortgage Policies (I) shall
include all endorsements for matters reasonably requested by the Administrative
Agent and (II) shall provide for affirmative insurance and such
reinsurance as the Administrative Agent may reasonably request, all of the
foregoing in form and substance reasonably satisfactory to the Administrative
Agent and the Lenders; and (B) evidence satisfactory to the Administrative
Agent and the Lenders that such Credit Party has (I) delivered to the
Title Company all certificates and affidavits required by the Title Company in
connection with the issuance of the Effective Date Mortgage Policies and (II) paid
to the Title Company or to the appropriate Governmental Authorities all
expenses and premiums of the Title Company in connection with the issuance of
the Effective Date Mortgage Policies and all recording and stamp taxes
(including mortgage recording and intangible taxes) payable in connection with
recording the Effective Date Mortgages in the appropriate real estate records;

 

(vii)                           Title Reports.  With respect
to each Effective Date Mortgaged Property listed (and marked with an
asterisk) in Schedule 4.5 annexed hereto, a title report issued by
the Title Company with respect thereto, dated not more than 30 days prior to
the Effective Date and satisfactory in form and substance to the Administrative
Agent and the Lenders;

 

(viii)                        Copies of Documents Relating to Title Exceptions. 
Copies of all recorded documents listed as exceptions to title or
otherwise referred to in the Effective Date Mortgage Policies or in the title
reports delivered pursuant to Section 5.1(f)(vii); and

 

(ix)                                Opinions of Local Counsel. 
An opinion of counsel (which counsel shall be reasonably satisfactory to
the Administrative Agent and the Lenders) in each state in which a Effective
Date Mortgaged Property is located with respect to the enforceability of the
form(s) of Effective Date Mortgages to be recorded in such state and such
other matters as the Administrative Agent may reasonably request, in each case
in form and substance reasonably satisfactory to the Administrative Agent and
the Lenders.

 

(g)                                 Environmental Reports and Certificates. 
The Administrative Agent shall have received reports or, if applicable,
updates of reports and other information, in form, scope and substance
satisfactory to the Lenders, regarding environmental matters relating to the
Facilities, which reports shall include a Phase I environmental assessment for
each of the Facilities listed in clause (i) of Schedule 4.5 (and so
identified thereon) annexed hereto which conforms to the ASTM Standard Practice
for Environmental Site Assessments: 
Phase I 

 

56

 

Environmental Site
Assessment Process E 1527-94 and a transaction screen for each of the
Facilities listed in clause (ii) of Schedule 4.5 (and so
identified thereon) annexed hereto which conforms to the ASTM Standard Practice
for Environmental Site Assessments: 
Transaction Screen Process E 1528-96. 
Such reports shall be conducted by one or more environmental consulting
firms reasonably satisfactory to the Lenders. 
With respect to the Facilities located in multi-tenant office buildings
for which no such reports shall be provided, the Credit Parties will provide a
certificate, satisfactory in form and substance to the Lenders, certifying that
there has been no release of hazardous substances at such Facilities and that
the Credit Parties have complied with Environmental Laws in connection with
such Facilities.

 

(h)                                 Evidence of Insurance. 
The Administrative Agent shall have received a certificate from the
Credit Parties’ insurance broker or other evidence satisfactory to it and the
Lenders that all insurance required to be maintained pursuant to Section 6.5
is in full force and effect and that the Administrative Agent on behalf of the
Lenders has been named as additional insured and loss payee thereunder to the
extent required under Section 6.5.

 

(i)                                     Management; Employment Contracts. 
The senior management structure of the Borrower and its Subsidiaries
shall be as set forth on Schedule 4.11, and the Administrative Agent
shall have received copies of, and the Lenders shall be satisfied with the form
and substance of (i) any and all employment contracts with and senior
management of the Borrower and its Subsidiaries, (ii) any and all shareholders
agreement among any of the shareholders of the Borrower and its Subsidiaries,
and (iii) any stock option plans, phantom stock incentive programs and
similar arrangements provided by the Borrower and its Subsidiaries to any
Person.

 

(j)                                     [Reserved]

 

(k)                                  Intercreditor Agreement. 
The Administrative Agent shall have received from each party to the
Intercreditor Agreement either (i) a counterpart of the Intercreditor
Agreement signed on behalf of such party, or (ii) evidence satisfactory to
the Administrative Agent and the Lenders (which may include telecopy
transmission of a signed signature page of the Intercreditor Agreement)
that such party has signed a counterpart of the Intercreditor Agreement.

 

(l)                                     Necessary Governmental Authorizations and
Consents.  The Borrower shall have obtained all permits,
licenses, authorizations or consents from all Governmental Authorities and all
consents of other Persons with respect to the Loan Documents, and Material
Indebtedness, Liens and agreements listed on Schedule 4.14 (and so
identified thereon) annexed hereto, in each case that are necessary or
advisable in connection with the transactions contemplated by this Agreement,
and the continued operation of the business conducted by the Borrower and its
Subsidiaries, and each of the foregoing shall be in full force and effect, in
each case other than those the failure to obtain or maintain which, either
individually or in the aggregate, would not reasonably be expected to have a
Material Adverse Effect.  No action,
request for stay, petition for review or rehearing, reconsideration or appeal
with respect to any of the foregoing shall be pending, and the time for any
applicable Governmental Authority to take action to set aside its consent on
its own motion shall have expired.

 

57

 

(m)                               Compliance Certificate; Consolidated
Total Leverage Ratio.  The Administrative Agent shall have received
a Compliance Certificate of a Financial Officer of the Borrower, in form and
detail satisfactory to the Lenders, certifying (i) as to the Credit
Parties’ Effective Date compliance with the financial covenants set forth in Section 7.9,
(ii) that the Consolidated Total Leverage Ratio does not exceed 7.90 to 1,
(iii) that the Consolidated Operating Company Leverage Ratio does not
exceed 6.0 to 1 and (iv) that the Consolidated Senior Leverage Ratio does
not exceed 3.25 to 1.

 

(n)                                 [Reserved]

 

(o)                                 Solvency Assurances. 
The Administrative Agent shall have received a certificate from a
Financial Officer of the Borrower to the effect that, as of the Effective Date
and after giving effect to the initial Loans hereunder and to the other
Transactions:

 

(i)                                     the aggregate value of all properties of
the Credit Parties at their present fair saleable value (i.e.,
the amount that may be realized within a reasonable time, considered to be six
months to one year, either through collection or sale at the regular market
value, conceiving the latter as the amount that could be obtained for the
property in question within such period by a capable and diligent businessman
from an interested buyer who is willing to purchase under ordinary selling
conditions), exceed the amount of all the debts and liabilities (including
contingent, subordinated, unmatured and unliquidated liabilities) of the Credit
Parties,

 

(ii)                                  the Credit Parties will not, on a
consolidated basis, have an unreasonably small capital with which to conduct
their business operations as heretofore conducted and

 

(iii)                               the Credit Parties will have, on a consolidated basis,
sufficient cash flow to enable them to pay their debts as they mature.

 

Such certificate shall
include a statement to the effect that the financial projections and underlying
assumptions contained in such analysis are, fair and reasonable and accurately
computed.

 

(p)                                 Financial Officer Certificate. 
The Administrative Agent shall have received a certificate, dated the
Effective Date and signed by the President, a Vice President or a Financial
Officer of the Borrower, confirming compliance with the conditions set forth in
paragraphs (a) and (b) of Section 5.3.

 

(q)                                 Certificate on Holding Company Notes
Indenture.  The Administrative Agent shall have received
a certificate, dated the Effective Date and signed by the President, a Vice
President or a Financial Officer of the Borrower, certifying that the
obligations of the Credit Parties with respect to the Loans are permitted to be
incurred and secured by the assets of the Credit Parties as “Permitted
Indebtedness” under the Holding Company Notes Indenture and the Senior
Subordinated Note Indenture, and that the obligations of the Credit Parties
with respect to the Loans are permitted to be incurred and secured by the
assets of the Credit Parties as “Refinancing Indebtedness” under the Holding
Company Notes Indenture and the Senior 

 

58

 

Subordinated Note
Indenture and demonstrating in reasonable detail the basis for such
certification.

 

(r)                                    No Material Adverse Effect. 
There shall have occurred no Material Adverse Effect (in the reasonable
opinion of the Administrative Agent) since December 31, 2009 with respect
to the Credit Parties.

 

(s)                                  Opinion of Counsel to Credit Parties. 
The Administrative Agent shall have received a favorable written opinion
(addressed to the Administrative Agent and the Lenders and dated the Effective
Date) of Kaplan, Strangis and Kaplan, P.A., counsel to the Credit Parties,
substantially in the form of Exhibit H annexed hereto and covering
such matters relating to the Credit Parties, this Agreement, the other Loan
Documents or the Transactions as the Required Lenders shall request (and each
Credit Party hereby requests such counsel to deliver such opinion).

 

(t)                                    Affiliate Subordination Agreement. 
Each of the parties to the Affiliate Subordination Agreement shall have
executed and delivered to the Administrative Agent, its counterpart of the
Affiliate Subordination Agreement.

 

(u)                                 Fees and Expenses. 
The Administrative Agent shall have received all fees and other amounts
due and payable on or prior to the Effective Date, including, to the extent
invoiced, reimbursement or payment of all out-of-pocket expenses required to be
reimbursed or paid by the Borrower hereunder.

 

(v)                                 Other Documents. 
The Administrative Agent shall have received such other documents as the
Administrative Agent or any Lender or its counsel shall have reasonably
requested.

 

(w)                               Adams Transactions. 
The Administrative Agent shall have received written evidence
satisfactory to the Lenders in their sole discretion, that, prior to or
concurrently with the Effective Date:

 

(i)                                     [Reserved];

 

(ii)                                  $25.4 million of Holding Company Notes
held by an affiliate of Stephen Adams shall have been irrevocably cancelled or
otherwise caused to be null and void, in each case, in a manner consistent with
the “AHYDO” provisions of the Code; and

 

(iii)                               All “Credit Support” claims previously asserted by
Stephen Adams against any of the Credit Parties and permitted under the
Existing Credit Agreement, shall have been subordinated to the payment in full
of the Loans and to the outstanding Holding Company Notes.

 

(x)                                   Agent Appointment Agreement. 
The Administrative Agent shall have received a duly executed copy of the
Agent Appointment Agreement signed by the applicable Credit Parties and the administrative
agent under the Existing Credit Agreement (the “Existing Administrative
Agent”), on terms satisfactory to the Administrative Agent and the Lenders
in 

 

59

 

their sole discretion,
along with any other documents, certificates, and consents that the
Administrative Agent and the Lenders may find necessary or desirable to effect
the transfer of all rights and obligations of the Existing Administrative Agent
under the Loan Documents, including without limitation the Collateral
Documents.

 

(y)                                 Debt Purchase Documentation. 
The Existing Administrative Agent shall have received duly executed
copies of each Assignment and Acceptance and any other related documents or
certificates, in each case acceptable to the Lenders in their sole discretion,
necessary or desirable to effect the purchase by the Lenders hereunder of all
obligations outstanding under the Existing Credit Agreement from the lenders
thereunder.

 

(z)                                   Camping World, Inc. Agreement.  Camping World, Inc. and FreedomRoads
shall have entered into an agreement whereby FreedomRoads has agreed to provide
to Camping World, Inc. the audited and unaudited monthly financial
statements of FreedomRoads.

 

(aa)                            Solvency Opinion. 
The Existing Administrative Agent shall have received a true and correct
copy of a solvency opinion with respect to the Borrower including its
consolidated subsidiaries, from Houlihan Smith & Co. having customary
terms, conditions, assumptions and limitations, in each case, acceptable to the
Administrative Agent and the Lenders.

 

(bb)                          Camping World Intercreditor Agreement. 
The Administrative Agent and Lenders shall have received an executed
copy of the Camping World Intercreditor Agreement, which shall be in form and
substance satisfactory to Administrative Agent and Lenders in their sole
discretion.

 

(cc)                            Camping World Credit Facility. 
The Administrative Agent shall have received copies of any and all
agreements, certificates and documents entered into between SunTrust Bank and
any Credit Party in connection with the Camping World Credit Facility, which
shall be in form and substance satisfactory to the Lenders in their sole
discretion.

 

(dd)                          Elimination of Revolving Loans. 
The Administrative Agent and Lenders shall have received evidence, in
the form of a payoff letter or otherwise and in substance satisfactory to the
Lenders in their sole discretion, that the Lenders shall have no obligations
with respect to revolving loans.

 

(ee)                            Liquidity.  The Credit
Parties shall have cash liquidity of no less than $5 million and Availability
(as that term is defined in the Camping World Credit Facility) of no less than
$2 million.

 

The Administrative Agent,
acting upon the confirmation of the Lenders, shall notify the Borrower of the
Effective Date, and such notice shall be conclusive and binding.  Notwithstanding the foregoing, the
obligations of the Lenders to make Loans hereunder shall not become effective
unless each of the foregoing conditions is satisfied (or waived pursuant to Section 10.2)
at or prior to 1:00 p.m., eastern standard time, on March 1, 2010
(and, in the event such conditions are not so satisfied or waived, the
Commitments shall terminate at such time).

 

60

 

5.2                                 [Reserved].

 

5.3                                 Extension of Credit. 
The obligation of each Lender to make a Loan on the Effective Date is
subject to the satisfaction of the following conditions:

 

(a)                                  Representations and Warranties. 
The representations and warranties of each Credit Party set forth in this
Agreement and the other Loan Documents shall be true and correct on and as of
the Effective Date, both before and after giving effect thereto and to the use
of the proceeds thereof (or, if any such representation or warranty is
expressly stated to have been made as of a specific date, such representation
or warranty shall be true and correct as of such specific date).

 

(b)                                 No Defaults. 
At the time of and immediately after giving effect to such Borrowing, no
Default shall have occurred and be continuing.

 

ARTICLE
VI

 

Affirmative
Covenants

 

Until all of the
principal of and interest on each Loan and all fees payable hereunder shall
have been paid in full, each of the Credit Parties covenants and agrees with
the Lenders that:

 

6.1                                 Financial Statements and Other
Information.  The Credit Parties will furnish to the
Administrative Agent and each Lender:

 

(a)                                  as soon as available, but in any event no
later than the earlier of (x) 90 days after the end of each fiscal year of
the Credit Parties and (y) earlier of the date the Holding Company’s or
the Borrower’s financial statements of the type referred to in clause (i) below
are required to be filed with the Securities and Exchange Commission:

 

(i)                                     consolidated and consolidating statements
of income, retained earnings and cash flows of the Credit Parties for such
fiscal year and the related consolidated and consolidating balance sheets of
the Credit Parties as at the end of such fiscal year, setting forth in each
case in comparative form the corresponding consolidated and consolidating
figures for the preceding fiscal year,

 

(ii)                                  an opinion of independent certified
public accountants of recognized national standing (without a “going concern”
or like qualification or exception, except as permitted pursuant to Schedule
6.1, and without any qualification or exception as to the scope of such
audit) stating that said consolidated financial statements referred to in the
preceding clause (i) fairly present the consolidated financial condition
and results of operations of the Credit Parties as at the end of, and for, such
fiscal year in accordance with GAAP, and a statement of such accountants to the
effect that, in making the examination necessary for their opinion, nothing
came to their attention that caused them to believe that the Borrower was not
in compliance with Section 7.9, insofar as such Section relates to
accounting matters,

 

61

 

(iii)                               a certificate of a Financial Officer of the Borrower
stating that said consolidating financial statements referred to in the
preceding clause (i) fairly present the respective individual
unconsolidated financial condition and results of operations of the Credit
Parties, in each case in accordance GAAP consistently applied, as at the end of,
and for, such fiscal year, and

 

(iv)                              to the extent that the Borrower is at
such time subject to an obligation to file with the Securities and Exchange
Commission the certifications required pursuant to Sections 302 and 906 of
the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) and the
applicable rules under the Exchange Act and otherwise in accordance with
the requirements of the Sarbanes-Oxley Act and the Exchange Act, certifications
of each of the chief executive officer and chief financial officer of the
Borrower substantially similar in form and substance to such required
certifications, including a certification that (A) said consolidated
financial statements referred to in the preceding clause (i) do not
contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading, and (B) such consolidated
financial statements fairly present in all material respects the financial
condition, results of operations and cash flows of the Credit Parties on a
consolidated basis as of and for the periods presented in accordance with GAAP
consistently applied;

 

(b)                                 as soon as available but in any event no
later than the earlier of (x) 45 days after the end of each of the first
three fiscal quarters of the Credit Parties and (y) the date the Holding
Company’s or the Borrower’s financial statements of the type referred to in
clause (i) below are required to be filed with the Securities and Exchange
Commission:

 

(i)                                     consolidated and consolidating statements
of income, retained earnings and cash flows of the Credit Parties for such
period and for the period from the beginning of the respective fiscal year to
the end of such period, and the related consolidated and consolidating balance
sheets of the Credit Parties as at the end of such period, setting forth in
each case in comparative form the corresponding consolidated and consolidating
figures for the corresponding period in Credit Parties’ strategic plan for such
period and for the corresponding period in the preceding fiscal year (except
that, in the case of balance sheets, such comparison shall be to the last day
of the prior fiscal year),

 

(ii)                                  a certificate of a Financial Officer of
the Borrower, which certificate shall state that said consolidated financial
statements referred to in the preceding clause (i) fairly present the
consolidated financial condition and results of operations of the Credit
Parties and that said consolidating financial statements referred to in the
preceding clause (i) fairly present the respective individual
unconsolidated financial condition and results of operations of the Credit
Parties, in each case in accordance with generally accepted accounting principles,
consistently applied, as at the end of, and for, such period (subject to normal
year-end audit adjustments and the omission of footnotes), and

 

62

 

(iii)                               to the extent that the Borrower is at such time
subject to an obligation to file with the Securities and Exchange Commission
the certifications required pursuant to the Sarbanes-Oxley Act and the
applicable rules under the Exchange Act and otherwise in accordance with
the requirements of the Sarbanes-Oxley Act and the Exchange Act, certifications
of each of the chief executive officer and chief financial officer of the
Borrower substantially similar in form and substance to such required
certifications, including a certification that (A) said consolidated
financial statements referred to in the preceding clause (i) do not
contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading, and (B) such financial
statements fairly present in all material respects the financial condition,
results of operations and cash flows of the Borrower and its Subsidiaries on a
consolidated basis as of and for the periods presented in accordance with GAAP
consistently applied, subject to normal year-end audit adjustments and the
absence of footnotes;

 

(c)                                  as soon as available and in any event
within 20 days after the end of each month, internally prepared financial
statements consisting of consolidated and consolidating statements of income,
and cash flows of the Credit Parties for such month and for the period from the
beginning of the current fiscal year to the end of such month, and the related
consolidated and consolidating balance sheets of the Credit Parties as at the
end of such month setting forth in each case in comparative form the
corresponding consolidated and consolidating figures for the corresponding
period in Credit Parties’ strategic plan for such period;

 

(d)                                 concurrently with any delivery of
financial statements under clauses (a) and (b) above, a Compliance
Certificate;

 

(e)                                  [Reserved];

 

(f)                                    concurrently with any delivery of
financial statements under clause (a) above, a certificate of the
accounting firm that reported on such financial statements stating whether they
obtained knowledge during the course of their examination of such financial
statements of any Default (which certificate may be limited to the extent
required by accounting rules or guidelines);

 

(g)                                 as soon as available and in any event
within 30 days after the beginning of the fiscal year of the Borrower,
consolidated and consolidating statements of forecasted income for the Credit
Parties for each fiscal month in such fiscal year and a forecasted consolidated
and consolidating balance sheets of the Credit Parties, together with
supporting assumptions which were reasonable when made, as at the end of each
fiscal month, all prepared in good faith in reasonable detail and consistent
with the Borrower’s and the Borrower’s past practices in preparing projections
and otherwise reasonably satisfactory in scope to the Administrative Agent;

 

(h)                                 promptly after the same become publicly
available, copies of all registration statements, regular periodic and other
reports and statements filed by the Holding Company or any Credit Party with
the Securities and Exchange Commission or any

 

63

 

Governmental Authority
succeeding to any or all of the functions of said Commission or with any
national securities exchange or market quotation system and copies of all press
releases by the Holding Company or any Credit Party;

 

(i)                                     promptly upon the mailing thereof to the
shareholders of the Borrower generally, copies of all financial statements,
reports and proxy or information statements so mailed;

 

(j)                                     promptly upon the Administrative Agent’s
request, for each publication for which audits are regularly prepared by any
Credit Party (i) audits of the magazine subscriptions for each of the
publications of the Credit Parties as of December 31 and June 30 each
year performed by either Audit Bureau of Circulations or Business Publications
Audit of Circulation, Inc. and (ii) audits of the membership
subscriptions for the Credit Parties as of December 31 and June 30
each year;

 

(k)                                  promptly upon the Administrative Agent’s
request, the Borrower shall deliver to the Administrative Agent tapes, disks or
other storage media containing the then-current subscription and membership
lists and other data bases maintained by each of the Credit Parties, together
with the technical specifications for how to read such information, all in form
reasonably satisfactory to the Administrative Agent which may include the
requirement that the Borrower request that each of its and its Subsidiaries’
fulfillment houses furnish such information regarding the Credit Parties’
subscription lists as are maintained by such fulfillment houses; provided, however, that the Administrative Agent shall not
divulge such information to any Person prior to the occurrence of an Event of
Default; provided, further however, that after
the occurrence and during the continuation of an Event of Default, the
Administrative Agent may use that information for any lawful purpose (including
a sale of one or more data bases), provided that the Administrative Agent acts
in a commercially reasonable fashion in making such use, but the Administrative
Agent shall have no obligation to make any such use of such information unless
directed to do so by the Required Lenders;

 

(l)                                     promptly after delivery of the same to
the Paying Agent, copies of all notices of redemption, payment instructions,
officer’s certificates, and other similar documents delivered to the Paying
Agent under the Holding Company Notes Indenture in connection with any
redemption of Holding Company Notes; and

 

(m)                               promptly following any request therefor,
such other information regarding the operations, business affairs and financial
condition of any Credit Party, or compliance with the terms of this Agreement,
as the Administrative Agent or any Lender may reasonably request.

 

6.2                                 Notices of Material Events. 
The Credit Parties will furnish to the Administrative Agent and each
Lender prompt written notice of the following:

 

(a)                                  the occurrence of any Default;

 

(b)                                 the filing or commencement of any action,
suit or proceeding by or before any arbitrator or Governmental Authority
against or affecting any Credit Party or any Affiliate thereof that, if
adversely determined, could reasonably be expected to result in a Material
Adverse Effect;

 

64

 

(c)                                  the occurrence of any ERISA Event that,
alone or together with any other ERISA Events that have occurred, could
reasonably be expected to result in liability of the Credit Parties in an
aggregate amount exceeding $100,000; and

 

(d)                                 the occurrence of any event of default or
termination under any Sale-Leaseback Agreement between a Credit Party and AGRP
Holding Corp. or any of its Subsidiaries;

 

(e)                                  the occurrence of any event of default or
termination under any instrument, agreement or mortgage between AGRP Holding
Corp. or any of its Subsidiaries and CIBC Inc. in connection with any loan
secured by a mortgage on property leased or used by any Credit Party; and

 

(f)                                    any other development that results in, or
could reasonably be expected to result in, a Material Adverse Effect.

 

(g)                                 the occurrence of any default under the
Holding Company Notes Indenture or the Senior Subordinated Notes Indenture or
the receipt of any notice delivered by the trustee pursuant to the Holding
Company Notes Indenture or the Senior Subordinated Notes Indenture (and a copy
of such notice shall be delivered to the Administrative Agent).

 

Each notice delivered
under this Section 6.2 shall be accompanied by a statement of a Financial
Officer or other executive officer of the Borrower setting forth the details of
the event or development requiring such notice and any action taken or proposed
to be taken with respect thereto.

 

6.3                                 Existence; Conduct of Business. 
The Credit Parties will do or cause to be done all things necessary to
preserve, renew and keep in full force and effect its legal existence and the
rights, licenses, permits, privileges and franchises material to the conduct of
its business. No Credit Party shall change its corporate, partnership or
limited liability company form or jurisdiction of organization without the
written consent of the Required Lenders or the Administrative Agent on their
behalf, which consent shall not be unreasonably withheld; provided
that such consent shall be predicated upon such amendments to the Loan
Documents as shall be necessary to reflect such change.  The foregoing shall not prohibit any merger,
consolidation, liquidation, dissolution or any discontinuance or sale of such
business permitted under Section 7.4.

 

6.4                                 Payment of Obligations. 
Each of the Credit Parties will pay its obligations, including Tax
liabilities, that, if not paid, could result in a Material Adverse Effect
before the same shall become delinquent or in default, except where (a) the
validity or amount thereof is being contested in good faith by appropriate
proceedings, (b) such Credit Party has set aside on its books adequate
reserves with respect thereto in accordance with GAAP and (c) the failure
to make payment pending such contest could not reasonably be expected to result
in a Material Adverse Effect.

 

6.5                                 Maintenance of Properties; Insurance. 
The Credit Parties will (a) keep and maintain all property material
to the conduct of its business in good working order and condition, ordinary
wear and tear excepted, and (b) maintain insurance, with financially sound
and 

 

65

 

reputable insurance
companies, as may be required by law and such other insurance in such amounts
and against such risks as are customarily maintained by companies engaged in
the same or similar businesses operating in the same or similar locations,
including media perils insurance. 
Without limiting the generality of the foregoing, the Credit Parties
will (i) maintain or cause to be maintained flood insurance with respect
to each Flood Hazard Property in amounts approved by the Administrative Agent,
or provide evidence acceptable to the Administrative Agent that such insurance
is not available, (ii) maintain or cause to be maintained replacement
value casualty insurance on the Collateral and media perils insurance under
such policies of insurance, in each case with such insurance companies, in such
amounts, with such deductibles, and covering such terms and risks as are at all
times satisfactory to the Administrative Agent in its commercially reasonable
judgment.  Each such policy of insurance
shall (x) name the Administrative Agent for the benefit of the Lenders as
an additional insured thereunder as its interests may appear and (y) in
the case of each casualty insurance policy, contain a loss payable clause or
endorsement, satisfactory in form and substance to the Administrative Agent
that names the Administrative Agent for the benefit of the Lenders as the loss
payee thereunder for any covered loss in an amount not less than $1,000,000 per
occurrence, with “umbrella” coverage in an aggregate amount not less than
$25,000,000 and provides for at least 30 days prior written notice to the
Administrative Agent of any modifications or cancellation of such policy.

 

6.6                                 Books and Records; Inspection
Rights.  The Credit Parties will keep proper books of
record and account in which full, true and correct entries are made of all
dealings and transactions in relation to its business and activities.  The Credit Parties will permit any
representatives designated by the Administrative Agent or any Lender, upon
reasonable prior notice, to visit and inspect its properties, to examine and
make extracts from its books and records, and to discuss its affairs, finances
and condition with its officers and independent accountants, all at such
reasonable times and as often as reasonably requested.  The Borrower, in consultation with the
Administrative Agent, will arrange for a meeting to be held at least once every
year with the Lenders hereunder at which the business and operations of the
Credit Parties are discussed.

 

6.7         Fiscal Year.  To enable the ready and consistent
determination of compliance with the covenants set forth in Section 7
hereof, the Credit Parties (other than Camping World) will not change the last
day of their fiscal year from December 31 of each year, or the last day of
the first three fiscal quarters in each of its fiscal years from March 31,
June 30 and September 30, respectively, except that Camping World may
have a fiscal year which ends on the Sunday closest to December 31 of each
calendar year and such fiscal year shall consist of four thirteen-week fiscal
quarters.

 

6.8                                 Compliance with Laws. 
The Credit Parties will comply with (i) all laws, rules,
regulations and orders including, without limitation, Environmental Laws, of
any Governmental Authority and (ii) all contractual obligations, in each
case applicable to it or its property, except where the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect.

 

6.9                                 Use of Proceeds. 
The proceeds of the Loans will be used only for (i) the refinancing
of Indebtedness outstanding under the Existing Credit Agreement, and (ii) to
pay any 

 

66

 

fees and expenses
incurred in connection with the foregoing transactions and for general
corporate purposes not in contravention of this Agreement.  No part of the proceeds of any Loan will be
used, whether directly or indirectly, for any purpose that entails a violation
of any of the Regulations of the Board, including Regulations T, U
and X.

 

6.10                           Certain Obligations Respecting
Subsidiaries and Collateral Security.

 

(a)                                  Additional Subsidiaries. 
In the event that any Credit Party shall form or acquire any new
Subsidiary after the date hereof, such Credit Party  will, and will cause each of its Subsidiaries
to, cause such new Subsidiary within five Business Days of such formation or
acquisition:

 

(i)                                     to execute and deliver to the
Administrative Agent the following documents: 
(1) a counterpart to this Agreement (and thereby to become a party
to this Agreement, as a “Guarantor” hereunder), (2) a counterpart to the
Pledge Agreement, (3) a counterpart to the Security Agreement, (4) a
counterpart to the Trademark Security Agreement, (5) a counterpart to the
Copyright Security Agreement and (6) Mortgages and such other instruments
documents and agreements as may be required by the Administrative Agent; and

 

(ii)                                  to take such action (including delivering
such shares of stock and such UCC financing statements) as shall be necessary
to create and perfect valid and enforceable first priority Liens consistent
with the provisions of the applicable Collateral Documents but with respect to
the Camping World Entities subject to the Liens securing the Camping World
Credit Facility; and

 

(iii)                               to deliver such proof of corporate action, incumbency
of officers and other documents as is consistent with those delivered by each
Subsidiary pursuant to Section 5.1 upon the Effective Date or as the
Administrative Agent shall have reasonably requested.

 

(b)                                 Ownership of Subsidiaries. 
No Credit Party shall sell, transfer or otherwise dispose of any shares
of stock in any Subsidiary owned by it, nor permit any Subsidiary to issue any
shares of stock of any class whatsoever to any Person other than to a Credit
Party.  The Credit Parties will take such
action from time to time as shall be necessary to ensure that the percentage of
the equity capital of any class or character owned by it in any Subsidiary on
the Effective Date (or, in the case of any newly formed or newly acquired
Subsidiary, on the date of formation or acquisition) is not at any time
decreased, other than by reason of transfers to another Credit Party.  In the event that any additional shares of
stock shall be issued by any Credit Party, the respective holder of such shares
of stock shall forthwith deliver to the Administrative Agent pursuant to the
Pledge Agreement the certificates evidencing such shares of stock, accompanied
by undated stock powers executed in blank and to take such other action as the
Administrative Agent shall request to perfect the security interest created
therein pursuant to the Pledge Agreement.

 

6.11                           ERISA. 
The Credit Parties will maintain, each Plan in compliance with all
material applicable requirements of ERISA and of the Code and with all
applicable rulings and 

 

67

 

regulations issued under
the provisions of ERISA and of the Code and will not and not permit any of the
ERISA Affiliates to (a) engage in any transaction in connection with which
the Borrower or any of the ERISA Affiliates would be subject to either a civil
penalty assessed pursuant to Section 502(i) of ERISA or a tax imposed
by Section 4975 of the Code, in either case in an amount exceeding
$50,000, (b) fail to make full payment when due of all amounts which,
under the provisions of any Plan, the Borrower or any ERISA Affiliate is
required to pay as contributions thereto, or permit to exist any accumulated
funding deficiency (as such term is defined in Section 302 of ERISA and Section 412
of the Code), whether or not waived, with respect to any Plan in an aggregate
amount exceeding $50,000 or (c) fail to make any payments in an aggregate
amount exceeding $50,000 to any Multiemployer Plan that the Borrower or any of
the ERISA Affiliates may be required to make under any agreement relating to
such Multiemployer Plan or any law pertaining thereto.

 

6.12                           Environmental Matters; Reporting. 
The Credit Parties will observe and comply with, all laws, rules,
regulations and orders of any government or government agency relating to
health, safety, pollution, hazardous materials or other environmental matters
to the extent non-compliance could result in a material liability or otherwise
have a material adverse effect on the Borrower and the Subsidiaries taken as a
whole.  The Borrower will give the
Administrative Agent prompt written notice of any violation as to any
environmental matter by any Credit Party and of the commencement of any
judicial or administrative proceeding relating to health, safety or
environmental matters (a) in which an adverse effect on any operating
permits, air emission permits, water discharge permits, hazardous waste permits
or other permits held by any Credit Party which are material to the operations
of such Credit Party, or (b) which will or threatens to impose a material
liability on such Credit Party to any Person or which will require a material
expenditure by such Credit Party to cure any alleged problem or violation.

 

6.13                           Conforming Leasehold Interests;
Matters Relating to Additional Real Property Collateral.

 

(a)                                  If any Credit Party acquires any Material
Leasehold Property, the Borrower shall, or shall cause such Subsidiary to, use
its best efforts to cause such Leasehold Property to be a Conforming Leasehold
Interest.

 

(b)                                 From and after the Effective Date, in the
event that (i) any Credit Party acquires any fee interest in real property
having a fair market value in excess of $1,000,000 or any Material Leasehold
Property, or the Administrative Agent determines in its sole discretion to
place a Mortgage on any Real Property Asset having a fair market value in
excess of $1,000,000 owned on the Effective Date by any Credit Party if a
Mortgage was not placed on any such Real Property Asset as of the Effective
Date, or (ii) at the time any Person becomes a Subsidiary, such Person
owns or holds any fee interest in real property or any Material Leasehold
Property, in either case excluding any such Real Property Asset the encumbering
of which requires the consent of any applicable lessor or (in the case of
clause (ii) above) any then-existing senior lienholder, where the Credit
Parties are unable to obtain such lessor’s or senior lienholder’s consent (any
such non-excluded Real Property Asset described in the foregoing clause (i) or
(ii) being a “Additional Mortgaged Property”), such Credit Party
shall deliver to the Administrative Agent, as soon as practicable after such
Person acquires such Additional Mortgaged Property, the following:

 

68

 

(i)                                     Additional Mortgages. 
A fully executed and notarized Mortgage (an “Additional Mortgage”),
in proper form for recording in all appropriate places in all applicable
jurisdictions, encumbering the interest of such Credit Party in such Additional
Mortgaged Property;

 

(ii)                                  Surveys.  With respect
to each Additional Mortgaged Property, copies of all existing surveys,
surveyors certificates and such additional surveys or surveyor certificates as
the Administrative Agent may reasonably require;

 

(iii)                               Recorded Leasehold Interests. 
In the case of any Additional Mortgaged Property consisting of a
Leasehold Property, copies of all leases between any Credit Party and any
landlord or tenant;

 

(iv)                              Landlord Consents and Estoppels. 
In the case of any Additional Mortgaged Property consisting of a
Leasehold Property, (a) a Landlord Consent and Estoppel with respect
thereto and where required by the terms of any lease, the consent of the
mortgagee, ground lessor or other party and (b) evidence that such
Leasehold Property is a Recorded Leasehold Interest;

 

(v)                                 Matters Relating to Flood Hazard
Properties.  (A) Evidence as to whether any
Additional Mortgaged Property is a Flood Hazard Property and (B) if such
Additional Mortgaged Property is a Flood Hazard Property, evidence that the
applicable Credit Party has obtained flood insurance with respect to each Flood
Hazard Property in amounts approved by the Administrative Agent, or evidence
acceptable to the Administrative Agent that such insurance is not available;

 

(vi)                              Title Insurance.  (A) If
required by the Administrative Agent, ALTA mortgagee title insurance policies
or unconditional commitments therefor (the “Additional Mortgage Policies”)
issued by the Title Company with respect to the Additional Mortgaged Property,
in an amount satisfactory to the Administrative Agent, insuring fee simple
title to, or a valid leasehold interest in, each such Additional Mortgaged
Property vested in such Credit Party and assuring the Administrative Agent that
such Additional Mortgage creates a valid and enforceable First Priority
mortgage Lien on such Additional Mortgaged Property, subject only to any
standard exceptions as may be reasonably acceptable to the Administrative
Agent, which Additional Mortgage Policy (I) shall include all endorsements
for matters reasonably requested by the Administrative Agent and (II) shall
provide for affirmative insurance and such reinsurance as the Administrative
Agent may reasonably request, all of the foregoing in form and substance
reasonably satisfactory to the Administrative Agent; and (B) evidence
satisfactory to the Administrative Agent that such Credit Party has (I) delivered
to the Title Company all certificates and affidavits required by the Title
Company in connection with the issuance of the Additional Mortgage Policy and (II) paid
to the Title Company or to the appropriate Governmental Authorities all
expenses and premiums of the Title Company in connection with the issuance of
the Additional Mortgage Policy and all recording and stamp taxes (including
mortgage recording and intangible taxes) payable in 

 

69

 

connection with
recording the Additional Mortgage in the appropriate real estate records;

 

(vii)                           Title Reports.  If no
Additional Mortgage Policy is required with respect to such Additional
Mortgaged Property, a title report issued by the Title Company with respect
thereto, dated not more than 30 days prior to the date such Additional Mortgage
is to be recorded and satisfactory in form and substance to the Administrative
Agent;

 

(viii)                        Copies of Documents Relating to Title Exceptions. 
Copies of all recorded documents listed as exceptions to title or
otherwise referred to in the Additional Mortgage Policy or in the title reports
delivered pursuant to Section 6.13(b)(vii);

 

(ix)                                Environmental Audit. 
If required by the Administrative Agent, reports and other information
in form, scope and substance satisfactory to the Administrative Agent and
prepared by environmental consultants satisfactory to the Administrative Agent,
concerning any environmental hazards or liabilities to which any Credit Party
may be subject with respect to such Additional Mortgaged Property; and

 

(x)                                   Opinions of Counsel.  (1) An
favorable opinion of counsel (which counsel shall be satisfactory to the
Administrative Agent and its counsel), as to the due authorization, execution
and delivery by such Credit Party of such Additional Mortgage and such other matters
as the Administrative Agent may reasonably request, and (2) if required by
the Administrative Agent, an opinion of counsel (which counsel shall be
satisfactory to the Administrative Agent and its counsel) in the state in which
such Additional Mortgaged Property is located with respect to the
enforceability of the form of Additional Mortgages to be recorded in such state
and such other matters (including without limitation any matters governed by
the laws of such state regarding personal property security interests in
respect of any Collateral) as the Administrative Agent may reasonably request,
in each case in form and substance reasonably satisfactory to the
Administrative Agent.

 

(c)                                  The Credit Parties will permit an
independent real estate appraiser satisfactory to the Administrative Agent,
upon reasonable notice, to visit and inspect any Additional Mortgaged Property
for the purpose of preparing an appraisal of such Additional Mortgaged Property
satisfying the requirements of all applicable laws and regulations (in each
case to the extent required under such laws and regulations as determined by
the Administrative Agent in its sole discretion).

 

6.14                           Board Observation Rights. 
Each Credit Party shall permit a representative designated by the
Required Lenders (the “Lender Representative”) to attend and participate
in, as a non-voting observer, all meetings of the Board of Directors of each
Credit Party and all meetings of any committee of any such Board of Directors,
provided that if any Lender holds more than fifty percent (50%) of the
outstanding balance of the Loans, that Lender shall designate the Lender
Representative.  In the event that no
Lender holds more than fifty percent 

 

70

 

(50%) of the outstanding
balance of the Loans, the Required Lenders may designate any representative to
serve as the Lender Representative. Each Credit Party shall agree to give the
Lender Representative the same notice of all such meetings and copies of all
materials distributed to members of such Board of Directors at the same time as
such notice and materials are given to the members of the applicable Board of
Directors, and the Lender Representative will be given the opportunity to
participate in any telephonic meetings of each Board of Directors.  Each Credit Party shall agree to cause its
Board of Directors to meet not less frequently than quarterly.  If it is proposed that any action be taken by
written consent in lieu of a meeting of any Board of Directors or of any committee
thereof, the relevant Credit Party shall agree to give written notice thereof
to the Lender Representative at least five (5) Business Days’ prior to the
effective date of such consent describing in reasonable detail the nature and
substance of such action. 
Notwithstanding anything herein to the contrary, the Lender
Representative may be excused by the relevant Board of Directors from attending
any portion of a Board of Directors or committee meeting (i) to the extent
that attendance by the Lender Representative would jeopardize a Credit Party’s
ability to assert the attorney-client privilege with respect to matters of
material importance to be discussed during a portion of any meeting as
determined by the Board of Directors in good faith or (ii) during which
matters relating to the Loan Documents are to be discussed.  In addition, no person who serves as the
Lender Representative shall have a fiduciary duty to the Borrower.

 

6.15                           Chief Restructuring Officer. 
Within sixty (60) days of the occurrence of an Event of Default or any
death or permanent disability (subject to Section 8.1(s)) of the Chairman
of the Board or the Chief Executive Officer, the Borrower shall engage and
maintain in place, at all times and at its sole expense, a chief restructuring
officer satisfactory to the Required Lenders in their sole discretion (the “Chief
Restructuring Officer”).  Upon and
after engagement, the Chief Restructuring Officer shall have complete and full
access at all times to management of the Credit Parties and to the books and
records of the Credit Parties in order to provide information and advice to the
Credit Parties regarding all aspects of the business, financial condition,
operations, and prospects of the Credit Parties.  The Credit Parties shall consent to the
Administrative Agent or the Lenders contacting the Chief Restructuring Officer
directly with respect to the status of the Credit Parties’ business operations
and the Credit Parties’ prospects and financial condition.  The Credit Parties shall further agree that
the Chief Restructuring Officer and/or Credit Parties shall deliver to the
Administrative Agent copies of any written reports, work product, information,
document or item received by any Credit Party from the Chief Restructuring
Officer, simultaneously with the delivery or receipt of the same, and any other
written reports and work product of the Chief Restructuring Officer that the
Administrative Agent may reasonably request.

 

6.16                         Post-Closing Deliverables. 
The Credit Parties will use their best efforts to promptly and fully
cooperate with the Administrative Agent and the Lenders to comply with all
requests from either or both of the Administrative Agent and the Lenders to
complete any post-closing matters as they arise from time to time, including
but not limited to, providing due diligence information, filing UCC financing
statements and recording documents related to mortgages and leasehold interests
in property, obtaining local counsel opinions, executing control agreements,
and updating insurance policies (for instance, to name the Administrative Agent
as insured on behalf of the Lenders). 
The Borrower shall also promptly pay the reasonable fees and expenses
incurred by the Lenders and the Administrative Agent (and their 

 

71

 

agents, including
legal counsel and the Title Company) to complete the post-closing items
generally referred to in the preceding sentence pursuant to the terms hereof
and any reimbursement agreement executed between the Borrower and counsel to
the Lenders and any other agreement between the Borrower and any other agent of
the Lender or Administrative Agent, as applicable.

 

6.17                         Subordination by Credit Parties. 
The Credit Parties hereby agree that all present and future Indebtedness
of any Credit Party to any other Credit Party (“Intercompany Indebtedness”)
shall be subordinate and junior in right of payment and priority to the Loans,
and each Credit Party agrees not to make, demand, accept or receive any payment
in respect of any present or future Intercompany Indebtedness, including any
payment received through the exercise of any right of setoff, counterclaim or
cross claim, or any collateral therefor, unless and until such time as the
Loans shall have been indefeasibly paid in full; provided
that, so long as no Default shall have occurred and be continuing and no
Default shall be caused thereby and such Indebtedness is expressly permitted
hereunder, the Credit Parties may make and receive such payments in respect of Intercompany
Indebtedness as shall be customary in the ordinary course of the Credit Parties’
business.  Without in any way limiting
the foregoing, in the event of any insolvency or bankruptcy proceedings, or any
receivership, liquidation, reorganization, dissolution or other similar
proceedings relative to any Credit Party or to its businesses, properties or
assets, the Lenders shall be entitled to receive payment in full of all of the
Loans before any Credit Party shall be entitled to receive any payment in
respect of any present or future Intercompany Indebtedness.

 

6.18                         Camping World Facility Documents. 
Amend, replace, refinance, refund, restructure, supplement, extend or
modify the Camping World Credit Agreement, Camping World Credit Facility or any
other document related thereto, or any of them, in effect on the Effective Date
to contravene the purposes of the Camping World Intercreditor Agreement or in
any manner which, after giving effect to any such modification, would result in
any non-compliance with the terms and 
conditions of the Camping World Intercreditor Agreement.

 

ARTICLE
VII

 

Negative
Covenants

 

Until the principal of
and interest on each Loan and all fees payable hereunder have been paid in
full, the Credit Parties covenant and agree with the Lenders that:

 

7.1                                 Indebtedness. 
No Credit Party will create, incur, assume or permit to exist any
Indebtedness, except:

 

(a)                                  Indebtedness created hereunder;

 

(b)                                 Indebtedness existing on the Effective
Date and set forth in Schedule 4.14 and any extension, renewal, refunding or
replacement of any such Indebtedness that does not increase the principal
amount thereof;

 

(c)                                  Indebtedness of any Credit Party to any
other Credit Party; provided
that, after the Effective Date, the aggregate Indebtedness owed by the Camping
World Entities to the 

 

72

 

other Credit Parties plus
the aggregate amount of any Investments made by the other Credit Parties in the
Camping World Entities after the Effective Date shall not exceed the
Investments permitted by Section 7.5(a)(i) and such Indebtedness
shall be unsecured and shall only be used for working capital purposes or for
capital expenditures in accordance with Section 7.9(e);

 

(d)                                 Guarantees by any Credit Party of Indebtedness
of any other Credit Party (other than Indebtedness of the Camping World
Entities);

 

(e)                                  Indebtedness of any Credit Party
(determined on a consolidated basis without duplication in accordance with
GAAP) in an aggregate principal amount which does not exceed $1,000,000 at any
one time outstanding;

 

(f)                                    Senior Subordinated Notes in an aggregate
principal amount not in excess of the aggregate amount of the Senior
Subordinated Notes outstanding on the Effective Date;

 

(g)                                 [Reserved];

 

(h)                                 Indebtedness of the Camping World
Entities under the Camping World Credit Facility, provided
that the aggregate principal amount of all obligations of the Credit Parties
under the Camping World Credit Facility shall not exceed $22 million at any
time;

 

(i)                                     [Reserved]; and

 

(j)                                     [Reserved].

 

7.2                                 Liens. No Credit Party will create, incur,
assume or permit to exist any Lien on any Property or asset now owned or
hereafter acquired by it, or assign, sell or transfer any income or revenues
(including accounts receivable) or rights in respect of any thereof, except:

 

(a)                                  Liens created under the Collateral
Documents;

 

(b)                                 any Lien on any property or asset of any
Credit Party existing on the date hereof and set forth in Schedule 4.14,
provided that (i) such Lien shall
not apply to any other property or asset of any Credit Party and (ii) such
Lien shall secure only those obligations which it secures on the date hereof
and extensions, renewals and replacements thereof that do not increase the
outstanding principal amount thereof;

 

(c)                                  Liens imposed by any Governmental
Authority for taxes, assessments or charges not yet due or which are being
contested in good faith and by appropriate proceedings if adequate reserves
with respect thereto are maintained on the books of any Credit Party in accordance
with GAAP;

 

(d)                                 carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s or other like Liens, and vendors’ Liens imposed by
statute or common law not securing the repayment of Indebtedness, arising in
the ordinary course of business which are not overdue for a period of more than
60 days or which are being contested in good faith and by appropriate
proceedings and Liens securing judgments (including, without limitation,
pre-judgment

 

73

 

attachments) but only to
the extent for an amount and for a period not resulting in an Event of Default
under Section 8.1(j) hereof;

 

(e)           pledges or deposits under worker’s
compensation, unemployment insurance and other social security legislation;

 

(f)            deposits to secure the performance
of bids, tenders, trade contracts (other than for borrowed money), leases
(other than capital leases), statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature incurred in the
ordinary course of business;

 

(g)           easements, rights-of-way,
restrictions and other similar encumbrances incurred in the ordinary course of
business and encumbrances consisting of zoning restrictions, easements,
licenses, restrictions on the use of Property or minor imperfections in title
thereto which, in the aggregate, are not material in amount, and which do not,
in the aggregate, materially detract from the value of the Property of any
Credit Party or interfere with the ordinary conduct of the business of any
Credit Party;

 

(h)           Liens consisting of bankers’ liens
and rights of setoff, in each case, arising by operation of law, and Liens on
documents presented in letters of credit drawings;

 

(i)            Liens on fixed or capital assets,
including real or personal property, acquired, constructed or improved by any
Credit Party, provided that (A) such Liens
secure Indebtedness (including Capital Lease Obligations) permitted by the
proviso to Section 7.1(e) (B) such Liens and the Indebtedness
secured thereby are incurred prior to or within 90 days after such acquisition
or the completion of such construction or improvement, (C) the
Indebtedness secured thereby does not exceed the cost of acquiring,
constructing or improving such fixed or capital assets and (D) such security
interests shall not apply to any other property or assets of any Credit Party;

 

(j)            [Reserved]; and

 

(k)           Liens on the assets and equity
interests of the Camping World Entities securing the Indebtedness described in Section 7.1(h).

 

7.3          Contingent Liabilities.
No Credit Party will Guarantee the Indebtedness or other obligations of any
Person, or Guarantee the payment of dividends or other distributions upon the
stock of, or the earnings of, any Person, except:

 

(a)           endorsements of negotiable instruments
for deposit or collection or similar transactions in the ordinary course of
business,

 

(b)           [Reserved];

 

74

 

(c)           Guarantees of obligations of any
Credit Party (other than any obligation of any of the Camping World Entities)
by any other Credit Party and Guarantees by the Camping World Entities of the
Indebtedness described in Section 7.1(h); and

 

(d)           [Reserved].

 

7.4                               Fundamental Changes. 
No Credit Party will enter into any transaction of merger or consolidation
or amalgamation, or liquidate, wind up or dissolve itself (or suffer any
liquidation or dissolution).  No Credit
Party will acquire any business or property from, or capital stock of, or be a
party to any acquisition of, any Person except for purchases of inventory and
other property to be sold or used in the ordinary course of business,
Investments permitted under Section 7.5 and Capital Expenditures permitted
under Section 7.9(e).  No Credit
Party will convey, sell, lease, transfer or otherwise dispose of, in one
transaction or a series of transactions, any material part of its business or
property, whether now owned or hereafter acquired (including, without
limitation, receivables and leasehold interests, but excluding (x) obsolete
or worn-out property, including leasehold interests, no longer used or useful
in its business, (y) any inventory or other property sold or disposed of
in the ordinary course of business and on ordinary business terms and (z) Sale-Leaseback
Transactions to the extent permitted by Section 7.14).

 

Notwithstanding
the foregoing provisions of this Section 7.4:

 

(a)                   any Subsidiary (other than
any Camping World Entity) may be merged or consolidated with or into any other
Subsidiary (other than any Camping World Entity) or into the Borrower; provided that if any such transaction
shall be between a Subsidiary and a Wholly Owned Subsidiary, the Wholly Owned
Subsidiary shall be the continuing or surviving corporation;

 

(b)                   any Subsidiary may sell,
lease, transfer or otherwise dispose of any or all of its property (upon
voluntary liquidation or otherwise) to any Subsidiary (other than any Camping
World Entity) that is a Wholly Owned Subsidiary of the Borrower;

 

(c)                   the capital stock of any
Subsidiary may be sold, transferred or otherwise disposed of to the Borrower or
any Subsidiary that is a Wholly Owned Subsidiary of the Borrower (other than
any Camping World Entity); and

 

(d)                   any Camping World Entity may
be merged or consolidated with or into any other Camping World Entity.

 

7.5                               Investments; Hedging Agreements.

 

(a)           No Credit Party (for purposes of this
Section 7.5 only, “Camping World Entity” will exclude the Borrower)  will make or permit to remain outstanding any
Investment, except:

 

(i)            (A) Investments
by any Credit Party in any other Credit Party existing on the Effective Date or
made prior to the Effective Date, and (B) Investments by:  (i) any Credit Party in any Affinity
Entity; (ii) any Camping World Entity in any other Credit Party; (iii) advances
by any Credit Party to any 

 

75

 

Affinity Entity, in the ordinary course of business; (iv) provided
that no Event of Default has occurred and is continuing, or would result from
any advance herein described, advances by any Affinity Entity to any Camping
World Entity to the extent of advances made on or after the Effective Date by
the Camping World Entities to the Affinity Entities; (v) advances by any
Camping World Entity to any other Camping World Entity, in the ordinary course
of business; (vi) capital contributions by any Credit Party to any
Affinity Entity; (vii) provided that no Event of Default has occurred and
is continuing, or would result from any capital contribution, dividend or
distribution herein described, capital contributions by any Affinity Entity to
any Camping World Entity to the extent of dividends or distributions made after
the Effective Date by the Camping World Entities to the Affinity Entities; and (viii) capital
contributions by any Camping World Entity to any other Camping World Entity;
provided, however, that with respect to items (iv) and (vii), (1) the
Company shall give notice to the Lenders of any advances, dividends or
distributions received by the Affinity Entities from the Camping World Entities
within five (5) Business Days of receipt which together on a cumulative
basis are greater than $1 million, and each $1 million thereafter,
without deducting any advances or capital contributions by any Affinities
Entity to any Camping World Entities, and (2) no advances or capital
contributions which in the aggregate exceed $1 million, and each $1 million
thereafter, shall be made by the Affiliated Entities to the Camping World
Entities without the prior written consent of the Required Lenders.

 

(ii)           Permitted
Investments;

 

(iii)          Deposit
and operating accounts subject to a control agreement in form and substance
satisfactory to the Required Lenders in favor of the Administrative Agent for
the benefit of the Secured Parties;

 

(iv)          Investments
represented by accounts receivable created or acquired in the ordinary course
of business;

 

(v)           Advances
to employees in the ordinary course of business not exceeding $250,000 in the
aggregate at any one time outstanding;

 

(vi)          [Reserved];

 

(vii)         [Reserved];

 

(viii)               The Unsecured Promissory Note
made by AGRP Holding Corp. to the Borrower dated December 5, 2001 in the
face amount of $4,835,000; and

 

(ix) the Investment
by CWI, Inc. on or about the date of issuance of the Holding Company Notes
in the equity capital of CWFR in an aggregate amount equal to the amount of the
proceeds of the capital contribution made to the Borrower by the Holding
Company on the date of issuance of the Holding Company Notes.

 

(b)           From and after the Effective Date, no
Credit Party will enter into any Hedging Agreement without the prior written
consent of the Required Lenders.

 

76

 

7.6           Restricted Junior Payments and Cash Flow Distributions.

 

No
Credit Party will declare or make any Restricted Junior Payment at any time; provided,
however, that

 

(i)                    so long as no Default shall
have occurred or be continuing or shall be caused thereby, the Borrower may
declare and make Restricted Junior Payments to the Holding Company in amounts
equal to the Permitted Tax Distributions,

 

(ii)                   so long as no Default shall
have occurred or be continuing or shall be caused thereby, the Borrower may
make Restricted Junior Payments to the Holding Company in an aggregate amount
not in excess of $100,000 in any fiscal year to provide funds to the Holding
Company to pay administrative expenses and costs of registration of the Holding
Company Notes, and

 

(iii)                  so
long as no Default shall have occurred or be continuing or shall be caused
thereby, the Borrower may declare and make Restricted Junior Payments in
amounts equal to the cash interest payments to the holders of the Senior
Subordinated Notes in accordance with, and only to the extent required by, the
indenture or other document governing such indebtedness; and

 

(iv)                  the
Borrower may repurchase Senior Subordinated Notes from the holders of the
Senior Subordinated Notes to the extent permitted in Section 7.12;

 

provided that nothing herein shall be
deemed to prohibit the making of any dividend or distribution by a Subsidiary
to any other Credit Party and by a Camping World Entity to any other Camping
World Entity, provided further however, that no Subsidiary may make any
dividend or distribution to any Affiliate in order to ultimately effect a
payment to any Camping World Entity.

 

7.7           Transactions with
Affiliates.  Except as
expressly permitted by this Agreement, no Credit Party will, directly or
indirectly (a) make any Investment in an Affiliate; (b) transfer,
sell, lease, assign or otherwise dispose of any property to an Affiliate; (c) merge
into or consolidate with an Affiliate, or purchase or acquire property from an
Affiliate; or (d) enter into any other transaction directly or indirectly
with or for the benefit of an Affiliate (including, without limitation,
guarantees and assumptions of obligations of an Affiliate); provided that:

 

(i)            any
Affiliate who is an individual may serve as a director, officer, employee or
consultant of any Credit Party and receive reasonable compensation for his or
her services in such capacity;

 

(ii)           the
Credit Parties may engage in and continue the transactions with or for the
benefit of Affiliates which are described in Schedule 7.7 annexed
hereto;

 

(iii)          CWI
may continue to own and hold the Investment permitted by Section 7.5(a)(ix);

 

77

 

(iv)          [Reserved];

 

(v)           the
Credit Parties may engage in arms-length transactions for fair market value
with or for the benefit of Affiliates not in excess of $1,000,000 in any fiscal
year in addition to payments and transactions referred to in clauses (i) through
(iv) above;

 

(vi)          [Reserved];

 

(vii)         Camping
World, Inc. may enter into and perform under that certain Joint Venture
Agreement dated on or about March 6, 2006, as amended, with FRH in the
form delivered to the Administrative Agent; provided that all transactions
thereunder shall be  upon fair and
reasonable terms no less favorable to such Credit Party than it would obtain in
a comparable arms-length transactions and any transactions thereunder in excess
of $100,000 in the aggregate in any fiscal year that are not listed on Schedule
7.7 shall be subject to the prior written approval of the Required Lenders.

 

7.8           Restrictive Agreements.  No Credit Party will, directly or indirectly,
enter into, incur or permit to exist any agreement or other arrangement that
prohibits, restricts or imposes any condition upon (a) the ability of any
Credit Party to create, incur or permit to exist any Lien upon any of its
property or assets, or (b) the ability of any Subsidiary to pay dividends
or other distributions with respect to any shares of its capital stock or to
make or repay loans or advances to any other Credit Party or to Guarantee
Indebtedness of any other Credit Party; provided that (i) the
foregoing shall not apply to restrictions and conditions imposed by law or by
this Agreement, (ii) the foregoing shall not apply to restrictions and
conditions existing on the date hereof identified on Schedule 7.8 (but
shall apply to any extension or renewal of, or any amendment or modification
expanding the scope of, any such restriction or condition), (iii) the
foregoing shall not apply to customary restrictions and conditions contained in
agreements relating to the sale of a Subsidiary pending such sale, provided such restrictions and conditions apply only to the
Subsidiary that is to be sold and such sale is permitted hereunder, (iv) clause
(a) of the foregoing shall not apply to restrictions or conditions imposed
by any agreement relating to secured Indebtedness permitted by this Agreement
if such restrictions or conditions apply only to the property or assets
securing such Indebtedness; (v) clause (a) of the foregoing shall not
apply to customary provisions in leases and other contracts restricting the
assignment thereof; and (vi) the foregoing shall not apply to restrictions
and conditions contained in (A) the Senior Subordinated Notes or the
Senior Subordinated Notes Indenture or (B) the Holding Company Notes or
the Holding Company Notes Indenture and (C) the Camping World Credit Agreement.

 

7.9           Certain Financial
Covenants.

 

(a)      Consolidated Fixed Charges Ratio. 
The Credit Parties will not permit the Consolidated Fixed Charges Ratio as of
the end of any fiscal quarter ending during the periods set forth below to be
less than the ratio set opposite such period below:

 

78

 

	
  Four
  Quarter Period Ending

  	
   

  	
  Ratio

  
	
  June 30, 2010

  	
   

  	
  1.00

  
	
  September 30, 2010

  	
   

  	
  1.05

  
	
  December 31, 2010

  	
   

  	
  1.05

  
	
  March 31, 2011

  	
   

  	
  1.05

  
	
  June 30, 2011

  	
   

  	
  1.15

  
	
  September 30, 2011

  	
   

  	
  1.15

  
	
  December 31, 2011

  	
   

  	
  1.20

  
	
  March 31, 2012

  	
   

  	
  1.20

  
	
  June 30, 2012

  	
   

  	
  1.25

  
	
  September 30, 2012

  	
   

  	
  1.25

  
	
  December 31, 2012

  	
   

  	
  1.30

  
	
  March 31, 2013

  	
   

  	
  1.30

  
	
  June 30, 2013

  	
   

  	
  1.35

  
	
  September 30, 2013

  	
   

  	
  1.35

  
	
  December 31, 2013

  	
   

  	
  1.40

  
	
  March 31, 2014

  	
   

  	
  1.50

  
	
  June 30, 2014

  	
   

  	
  1.50

  
	
  September 30, 2014

  	
   

  	
  1.50

  
	
  December 31, 2014

  	
   

  	
  1.50

  

 

(b)      Consolidated Total Leverage Ratio. 
The Credit Parties will not permit the Consolidated Total Leverage Ratio at any
time during any period below to exceed the ratio set opposite such period below:

 

79

 

	
  Four
  Quarter Period Ending

  	
   

  	
  Ratio

  
	
  June 30, 2010

  	
   

  	
  7.90

  
	
  September 30, 2010

  	
   

  	
  7.50

  
	
  December 31, 2010

  	
   

  	
  7.25

  
	
  March 31, 2011

  	
   

  	
  7.25

  
	
  June 30, 2011

  	
   

  	
  7.00

  
	
  September 30, 2011

  	
   

  	
  6.75

  
	
  December 31, 2011

  	
   

  	
  6.50

  
	
  March 31, 2012

  	
   

  	
  6.25

  
	
  June 30, 2012

  	
   

  	
  6.00

  
	
  September 30, 2012

  	
   

  	
  5.75

  
	
  December 31, 2012

  	
   

  	
  5.75

  
	
  March 31, 2013

  	
   

  	
  5.50

  
	
  June 30, 2013

  	
   

  	
  5.25

  
	
  September 30, 2013

  	
   

  	
  5.25

  
	
  December 31, 2013

  	
   

  	
  5.00

  
	
  March 31, 2014

  	
   

  	
  5.00

  
	
  June 30, 2014

  	
   

  	
  5.00

  
	
  September 30, 2014

  	
   

  	
  5.00

  
	
  December 31, 2014

  	
   

  	
  5.00

  

 

(c)      Consolidated Senior Leverage Ratio.  The Credit Parties will not permit the
Consolidated Senior Leverage Ratio at any time during any period below to
exceed the ratio set opposite such period below:

 

80

 

	
  Four
  Quarter Period Ending

  	
   

  	
  Ratio

  
	
  June 30, 2010

  	
   

  	
  3.25

  
	
  September 30, 2010

  	
   

  	
  3.00

  
	
  December 31, 2010

  	
   

  	
  2.75

  
	
  March 31, 2011

  	
   

  	
  2.75

  
	
  June 30, 2011

  	
   

  	
  2.65

  
	
  September 30, 2011

  	
   

  	
  2.50

  
	
  December 31, 2011

  	
   

  	
  2.40

  
	
  March 31, 2012

  	
   

  	
  2.30

  
	
  June 30, 2012

  	
   

  	
  2.15

  
	
  September 30, 2012

  	
   

  	
  2.15

  
	
  December 31, 2012

  	
   

  	
  2.10

  
	
  March 31, 2013

  	
   

  	
  1.95

  
	
  June 30, 2013

  	
   

  	
  1.80

  
	
  September 30, 2013

  	
   

  	
  1.75

  
	
  December 31, 2013

  	
   

  	
  1.75

  
	
  March 31, 2014

  	
   

  	
  1.75

  
	
  June 30, 2014

  	
   

  	
  1.75

  
	
  September 30, 2014

  	
   

  	
  1.75

  
	
  December 31, 2014

  	
   

  	
  1.75

  

 

(d)      Consolidated Interest Coverage Ratio. 
The Credit Parties will not permit the Consolidated Interest Coverage Ratio as
of the end of any fiscal quarter ending during the periods set forth below to
be less than the ratio set opposite such period below:

 

81

 

	
  Four Quarter Period Ending

  	
   

  	
  Ratio

  
	
  June 30, 2010

  	
   

  	
  1.25

  
	
  September 30, 2010

  	
   

  	
  1.25

  
	
  December 31, 2010

  	
   

  	
  1.25

  
	
  March 31, 2011

  	
   

  	
  1.35

  
	
  June 30, 2011

  	
   

  	
  1.40

  
	
  September 30, 2011

  	
   

  	
  1.45

  
	
  December 31, 2011

  	
   

  	
  1.50

  
	
  March 31, 2012

  	
   

  	
  1.55

  
	
  June 30, 2012

  	
   

  	
  1.60

  
	
  September 30, 2012

  	
   

  	
  1.70

  
	
  December 31, 2012

  	
   

  	
  1.80

  
	
  March 31, 2013

  	
   

  	
  2.00

  
	
  June 30, 2013

  	
   

  	
  2.00

  
	
  September 30, 2013

  	
   

  	
  2.00

  
	
  December 31, 2013

  	
   

  	
  2.15

  
	
  March 31, 2014

  	
   

  	
  2.15

  
	
  June 30, 2014

  	
   

  	
  2.15

  
	
  September 30, 2014

  	
   

  	
  2.15

  
	
  December 31, 2014

  	
   

  	
  2.15

  

 

(e)      Consolidated Operating Company Leverage
Ratio.  The Credit Parties will not permit the Consolidated  Operating Company Ratio as of the end of any
fiscal quarter ending during the periods set forth below to be less than the
ratio set opposite such period below:

 

82

 

	
  Four Quarter Period Ending

  	
   

  	
  Ratio

  
	
  June 30, 2010

  	
   

  	
  6.00

  
	
  September 30, 2010

  	
   

  	
  5.75

  
	
  December 31, 2010

  	
   

  	
  5.50

  
	
  March 31, 2011

  	
   

  	
  5.50

  
	
  June 30, 2011

  	
   

  	
  5.25

  
	
  September 30, 2011

  	
   

  	
  5.10

  
	
  December 31, 2011

  	
   

  	
  5.00

  
	
  March 31, 2012

  	
   

  	
  4.75

  
	
  June 30, 2012

  	
   

  	
  4.75

  
	
  September 30, 2012

  	
   

  	
  4.50

  
	
  December 31, 2012

  	
   

  	
  4.35

  
	
  March 31, 2013

  	
   

  	
  4.35

  
	
  June 30, 2013

  	
   

  	
  4.25

  
	
  September 30, 2013

  	
   

  	
  4.15

  
	
  December 31, 2013

  	
   

  	
  4.00

  
	
  March 31, 2014

  	
   

  	
  4.00

  
	
  June 30, 2014

  	
   

  	
  4.00

  
	
  September 30, 2014

  	
   

  	
  4.00

  
	
  December 31, 2014

  	
   

  	
  4.00

  

 

(f)       Capital Expenditures.  The
Credit Parties will not permit the aggregate amount of Capital Expenditures to
exceed $5,000,000 in any fiscal year, provided that no more than $2,000,000 in
Capital Expenditures may be allocated to the Camping World Entities.

 

7.10         Lines of Business.  No Credit Party will engage to any
substantial extent in any line or lines of business activity other than (i) the
types of businesses engaged in by the Credit Parties as of the Effective Date, (ii) the
rental and sale of recreational vehicles and (iii) such other lines of
business as may be consented to by the Required Lenders.

 

7.11         Management Compensation.  [Reserved].

 

7.12         Subordinated Indebtedness.  Except as described in Section 2.10(b)(iv),
no Credit Party will purchase, redeem, retire or otherwise acquire for value,
or set apart any money for a sinking, defeasance or other analogous fund for
the purchase, redemption, retirement or

 

83

 

other acquisition of, or
make any voluntary payment or prepayment of the principal of or interest on, or
any other amount owing in respect of, any Subordinated Indebtedness, except for
regularly scheduled payments or prepayments of principal and interest in
respect thereof required pursuant to the instruments evidencing such
Subordinated Indebtedness.  No Credit
Party will Guarantee any other Subordinated Indebtedness without the prior
consent of the Required Lenders, except that all of the Persons which are
Guarantors hereunder may guaranty the Senior Subordinated Notes, provided that such guarantees are
subordinated to the guarantees set forth in Section 3.1 to the same extent
as the Senior Subordinated Notes is subordinated to the Loans.  Notwithstanding anything to the contrary in
this Agreement, the Borrower may use (i) the net cash payment made in
connection with the amendment of the GMAC Insurance Agreements, and (ii) the
remaining twenty-five percent (25%) of annual Excess Cash Flow not required to
be used to prepay the Loans pursuant to Section 2.10(b)(iv), to purchase
outstanding Senior Subordinated Notes due 2012 at a discount.

 

7.13         Modifications
of Certain Documents.  No
Credit Party will consent to any modification, supplement or waiver of any of
the provisions of any documents or agreements evidencing or governing any
Subordinated Indebtedness or any Sale-Leaseback Transaction, without the prior
consent of the Required Lenders; provided, however, that the Borrower may
consent to a modification, supplement or waiver with respect to the Senior
Subordinated Notes as long as (a) such modification, supplement or waiver
does not increase the principal amount of the Senior Subordinated Notes as of
the date of modification, supplement or waiver, (b) the pro forma
Consolidated Fixed Charge Coverage Ratio following such modification,
supplement or waiver is at least 1.0:1.0, and (c) the Senior Subordinated
Notes have a final maturity at least six months after the Term Loan Maturity
Date.

 

7.14         Sale-Leaseback
Transactions  No Credit Party
will, directly or indirectly, enter into any Sale-Leaseback Transactions
without the prior written consent of the Required Lenders.

 

7.15         Real
Property Leases.  No Credit
Party will enter into or maintain any lease of (or other arrangement conveying
the right to use) real property, as lessee, if immediately after giving effect
thereto, (a) the aggregate maximum fixed rentals paid or payable by the
Credit Parties under all such real property leases of the Credit Parties (excluding
amounts paid or payable on account of maintenance, utilities, ordinary repairs,
insurance, taxes, assessments and other similar charges, whether or not
designated as rental or additional rental) for the succeeding period of four
consecutive fiscal quarters minus (b) the amount of any payments
scheduled to be received by the Credit Parties during such period from the
sublease of leasehold interests would exceed $20,000,000.

 

7.16         Compensation
Payments to Stephen Adams; Management Compensation  No Credit Party shall pay or cause to be paid
any salary, bonuses or other compensation payments to Stephen Adams except (a) in
the event of a change in circumstances related to management personnel or
management structure of the Credit Parties as a result of which Stephen Adams
is performing duties other than those performed by him as Chairman of the Board
of Directors of the Borrower as of the Effective Date, or (b) with the
consent of the Required Lenders.  No Credit Party will accrue any Phantom
Stock Accruals or make any cash payments in respect thereof or otherwise in
respect of Phantom Stock Accruals pursuant to any Phantom Stock Agreements or
otherwise.

 

84

 

7.17         Restrictions
on the Holding Company  The
Holding Company Collateral Documents shall provide that the Holding Company
will not engage in any business activities other than ownership of all the
outstanding equity of the Borrower and ongoing activities related to the
outstanding Holding Company Notes and will not create, incur, assume or permit
to exist any Indebtedness other than the Holding Company Notes in an aggregate
principal amount not in excess of the principal amount of the Holding Company
Notes issued on the date of initial issuance thereof (plus any notes issued to
pay interest thereon in accordance with the Holding Company Notes
Indenture).  The Holding Company
Collateral Documents shall provide that the Holding Company will not consent to
any modification, amendment, supplement or waiver of the Holding Company Notes
Indenture without the prior consent of the Required Lenders; provided, however,
that the consent of the Required Lenders shall not be required in connection
with a modification, supplement or waiver with respect to the Holding Company
Notes as long as (a) such modification, supplement or waiver does not
increase the principal amount of the Holding Company Notes as of the date of
modification, supplement or waiver, (b) the Holding Company Notes have a
final maturity at least six months after the Term Loan Maturity Date.

 

7.18         Restrictions
on CWFR.  (a) The Credit
Parties will not permit CWFR to (i) engage in any business activities or
create, incur, assume or permit to exist any Indebtedness other than ownership
of the FRH Preferred Equity Interest and ongoing activities related thereto, (ii) agree
to any amendment, modification, supplement or waiver to any of the terms of the
FRH Preferred or any agreement which limits or restricts the rights of the
members of FRH without, in each case, the prior consent of the Administrative
Agent, (iii) assign, sale, dispose, pledge or otherwise transfer any of
the FRH Preferred Equity Interest unless, as a result thereof, the Credit
Parties have received an amount at least equal to the Liquidation Payment, or (iv) agree
to the filing of any voluntary bankruptcy petition or similar filing by FRH
without the prior consent of the Required Lenders.

 

(b)          Upon the receipt by CWFR
of any distribution, Liquidation Payment or other payment from FRH, the Credit
Parties shall cause CWFR to distribute such distribution, Liquidation Payment
or other payment to CWI, Inc., and such distribution, Liquidation Payment
or other payment shall be distributed by the Credit Parties to the Borrower.

 

ARTICLE
VIII

Events of Default

 

8.1           Events of
Default.

 

If any
of the following events (“Events of Default”) shall occur:

 

(a)           the
Credit Parties shall fail to pay any principal of, or interest on, any Loan, or
other amount payable under this Agreement or any fee payable under this
Agreement or any other agreement to the Administrative Agent or the Lenders,
when and as the same shall become due and payable, whether at the due date
thereof or at a date fixed for prepayment thereof or otherwise;

 

85

 

(b)           any representation or
warranty made or deemed made by or on behalf any Credit Party in or in
connection with this Agreement, any of the other Basic Documents or any
amendment or modification hereof or thereof, or in any report, certificate,
financial statement or other document furnished pursuant to or in connection
with this Agreement, any of the other Basic Documents or any amendment or
modification hereof or thereof, shall prove to have been incorrect when made or
deemed made in any material respect;

 

(c)           the Credit Parties
shall fail to observe or perform any covenant, condition or agreement contained
in Article VI or in Article VII;

 

(d)           any Credit Party shall
fail to observe or perform any covenant, condition or agreement contained in
this Agreement (other than those specified in clauses (a), (b) or (c) of
this Article) or any other Loan Document, and such failure shall continue
unremedied for a period of 30 days after notice thereof from the Administrative
Agent (given at the request of the Required Lenders) to the Borrower;

 

(e)           any Credit Party shall
fail to make any payment (whether of principal or interest and regardless of
amount) in respect of any Material Indebtedness, when and as the same shall
become due and payable;

 

(f)            any event or condition
occurs that results in any Material Indebtedness becoming due prior to its
scheduled maturity or that enables or permits (with or without the giving of
notice, the lapse of time or both) the holder or holders of any Material
Indebtedness or any trustee or Administrative Agent on its or their behalf to
cause any Material Indebtedness to become due, or to require the prepayment,
repurchase, redemption or defeasance thereof, prior to its scheduled maturity;

 

(g)           an involuntary
proceeding shall be commenced or an involuntary petition shall be filed seeking
(i) liquidation, reorganization or other relief in respect of the Parent,
the Holding Company or any Credit Party or its debts, or of a substantial part
of its assets, under any Federal, state or foreign bankruptcy, insolvency,
receivership or similar law now or hereafter in effect or (ii) the
appointment of a receiver, trustee, custodian, sequestrator, conservator or
similar official for the Parent, the Holding Company or any Credit Party or for
a substantial part of its assets;

 

(h)           the Parent, the Holding
Company or any Credit Party shall (i) voluntarily commence any proceeding
or file any petition seeking liquidation, reorganization or other relief under
any Federal, state or foreign bankruptcy, insolvency, receivership or similar
law now or hereafter in effect, (ii) consent to the institution of, or
fail to contest in a timely and appropriate manner, any proceeding or petition
described in clause (g) of this Article, (iii) apply for or consent
to the appointment of a receiver, trustee, custodian, sequestrator, conservator
or similar official for the Parent, the Holding Company or any Credit Party or
for a substantial part of its assets, (iv) file an answer admitting the
material allegations of a petition filed against it in any such proceeding, (v) make
a general assignment for the benefit of creditors or (vi) take any action
for the purpose of effecting any of the foregoing;

 

86

 

(i)            any Credit Party, the
Parent or the Holding Company shall become unable, admit in writing or fail
generally to pay its debts as they become due;

 

(j)            a final judgment or
judgments for the payment of money in excess of $1,000,000 in the aggregate
(exclusive of judgment amounts fully covered by insurance where the insurer has
admitted liability in respect of such judgment) shall be rendered by a one or
more courts, administrative tribunals or other bodies having jurisdiction
against any Credit Party and the same shall not be discharged with the prior
written approval of the Required Lenders (or provision shall not be made for
such discharge with the prior written approval of the Required Lenders), or a
stay of execution thereof shall not be procured, within 60 days from the date
of entry thereof and the relevant Credit Party shall not, within said period of
60 days, or such longer period during which execution of the same shall have
been stayed, appeal therefrom and cause the execution thereof to be stayed
during such appeal;

 

(k)           an ERISA Event shall
have occurred that, in the opinion of the Required Lenders, when taken together
with all other ERISA Events that have occurred, could reasonably be expected to
result in a Material Adverse Effect;

 

(l)            a reasonable basis
shall exist for the assertion against any Credit Party (or there shall have
been asserted against any Credit Party) claims or liabilities, whether accrued,
absolute or contingent, based on or arising from the generation, storage,
transport, handling or disposal of Hazardous Materials by any Credit Party or
any of its Subsidiaries or Affiliates, or any predecessor in interest of any
Credit Party or any of its Subsidiaries or Affiliates, or relating to any site
or facility owned, operated or leased by any Credit Party or any of its
Subsidiaries or Affiliates, which claims or liabilities (insofar as they are
payable by any Credit Party or any of its Subsidiaries but after deducting any
portion thereof which is reasonably expected to be paid by other credit worthy
Persons jointly and severally liable therefor), in the judgment of the Required
Lenders are reasonably likely to be determined adversely to any Credit Party or
any of its Subsidiaries, and the amount thereof is, singly or in the aggregate,
reasonably likely to have a Material Adverse Effect;

 

(m)          a Change of Control
shall occur and be continuing;

 

(n)           any of the following
shall occur:  (i) the Liens created
by the Collateral Documents shall at any time (other than by reason of the
Administrative Agent relinquishing such Lien) cease to constitute valid and
perfected Liens on the Collateral intended to be covered thereby; (ii) except
for expiration in accordance with its respective terms, any Collateral Document
shall for whatever reason be terminated, or shall cease to be in full force and
effect; or (iii) the enforceability of any Collateral Document shall be
contested by any Credit Party;

 

(o)           any Guarantor or the
Holding Company shall assert that its obligations hereunder or under the
Collateral Documents shall be invalid or unenforceable;

 

(p)           an “Event of Default”
shall have occurred under the Holding Company Notes Indenture or any document
or instrument governing any refinancing in respect of the Holding Company
Notes; or

 

87

 

(q)           any holder of the
Camping World Credit Facility shall assert that such credit facility secured by
any assets of Credit Parties other than the Camping World Entities;

 

(r)            a default or an event
of default shall have occurred under the notes or indenture in respect of (i) the
Senior Subordinated Notes or the Senior Subordinated Notes Indenture or (ii) the
Holding Company Notes or the Holding Company Notes Indenture, which default or
event of default entitles the holders of such notes to accelerate the maturity
of the indebtedness hereunder;

 

(s)           (i) Stephen Adams
shall cease to serve as Chairman of the Board of Directors of Borrower or he
otherwise becomes permanently disabled and, in each case, he is not replaced
within sixty (60) calendar days by an interim Chairman of the Board of
Directors and within sixty (60) days thereafter by a permanent Chairman of the
Board of Directors, each to Administrative Agent’s satisfaction in its sole
discretion, or any such replacement Chairman of the Board of Directors ceases
to serve in such capacity or otherwise becomes permanently disabled unless
replaced in the same time period and to Administrative Agent’s sole
satisfaction; and (ii) Michael Schneider ceases to serve as Chief
Executive Officer of the Borrower or he otherwise becomes permanently disabled
and, in each case, he is not replaced within one hundred twenty (120) calendar
days by an interim Chief Executive Officer to Administrative Agent’s
satisfaction in its sole discretion (provided, however, that there must be an
interim management transition plan satisfactory to the Administrative Agent and
Lenders in place at all times), or any such replacement Chief Executive Officer
ceases to serve in such capacity or otherwise becomes permanently disabled
unless replaced in the same time period and to Administrative Agent’s sole
satisfaction; for purpose of this clause (s) and Section 6.15, the
term “permanently disabled” shall mean the inability of either Stephen Adams or
Michael Schneider, as applicable, to perform the duties and responsibilities as
Chairman of the Board or Chief Executive Officer, as applicable, of the
Borrower by reason of illness or other physical or mental impairment or
condition, if such inability continues for an uninterrupted period of
forty-five (45) calendar days or more or a total of forty-five (45) calendar
days or more during any 360 day period; a period of inability shall be “uninterrupted”
unless and until such person returns to full-time work for a continuous period
of at least thirty (30) calendar days;

 

(t)            within ten (10) Business
Days of the first day on which all or a portion of $8.4 million of Holding
Company Notes held by an affiliate of Stephen Adams is no longer subject to any
encumbrance on, or pledge of, such Holding Company Notes, Stephen Adams shall
fail to cause all or such portion thereof, as applicable, to be irrevocably
converted to the capital of the Holding Company;

 

(u)           A default or an event
of default shall have occurred under the Camping World Credit Facility, which
default or event of default entitles the Camp World Lenders to accelerate the
maturity of the indebtedness thereunder;

 

(v)           The Availability (such
term, together with each of the other defined terms which constitute the
definition of Availability, as defined in the Camping World Credit Facility as
of the Effective Date) shall be zero or less than zero for any five (5) day
period; provided, however, that (in addition to any other rights held by the
Lenders pursuant to this Agreement) during such period no transfer of any
asset, payment, dividend or distribution shall be made by 

 

88

 

any Credit Party
to any Camping World Entity without the prior written approval of the Required
Lenders;

 

then, and in every such
event (other than an event with respect to the Credit Parties described in
clause (g) or (h) of this Article), and at any time thereafter during
the continuance of such event, the Administrative Agent may, and at the request
of the Required Lenders shall, by notice to the Credit Parties, take any or all
of the following actions, at the same or different times:  (i) declare the Loans then outstanding
to be due and payable in whole (or in part, in which case any principal not so
declared to be due and payable may thereafter be declared to be due and
payable), and thereupon the principal of the Loans so declared to be due and
payable, together with accrued interest thereon and all fees and other
obligations of the Credit Parties accrued hereunder, shall become due and
payable immediately, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by the Credit Parties, and (ii) the
Administrative Agent may exercise all of the rights as secured party and
mortgagee under the Collateral Documents; and in case of any event with respect
to the Credit Parties described in clause (g) or (h) of this Article,
the principal of the Loans then outstanding, together with accrued interest
thereon and all fees and other obligations of the Credit Parties accrued
hereunder, shall automatically become due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the Credit Parties, and the Administrative Agent shall be permitted to exercise
such rights as secured party and mortgagee under the Collateral Documents to
the extent permitted by applicable law.

 

8.2           Receivership.  Without limiting the generality of the
foregoing or limiting in any way the rights of the Administrative Agent or the
Lenders under the Collateral Documents or otherwise under applicable law, at
any time after (i) the entire principal balance of any Loan shall have
become due and payable (whether at maturity, by acceleration or otherwise) and (ii) the
Administrative Agent shall have provided to the Credit Parties not less than
ten (10) days prior written notice of its intention to apply for a
receiver, the Administrative Agent shall be entitled to apply for and have a
receiver appointed under state or federal law by a court of competent
jurisdiction in any action taken by the Administrative Agent to enforce the
Lenders’ and Administrative Agent’s rights and remedies hereunder and under the
Collateral Documents in order to manage, protect, preserve, sell and otherwise
dispose of all or any portion of the Collateral and continue the operation of
the business of the Credit Parties, and to collect all revenues and profits
thereof and apply the same to the payment of all expenses and other charges of
such receivership, including the compensation of the receiver, and to the
payment of the Loans and other fees and expenses due hereunder and under the
Collateral Documents as aforesaid until a sale or other disposition of such
Collateral shall be finally made and consummated.  THE CREDIT PARTIES HEREBY IRREVOCABLY CONSENT
TO AND WAIVE ANY RIGHT TO OBJECT TO OR OTHERWISE CONTEST THE APPOINTMENT OF
RECEIVER AS PROVIDED ABOVE.  THE CREDIT PARTIES
(I) GRANT SUCH WAIVER AND CONSENT KNOWINGLY AFTER HAVING DISCUSSED THE IMPLICATIONS
THEREOF WITH COUNSEL, (II) ACKNOWLEDGE THAT (A) THE UNCONTESTED RIGHT
TO HAVE A RECEIVER APPOINTED FOR THE FOREGOING PURPOSES IS CONSIDERED ESSENTIAL
BY THE ADMINISTRATIVE AGENT IN CONNECTION WITH THE ENFORCEMENT OF THE LENDERS’
AND ADMINISTRATIVE AGENT’S RIGHTS AND REMEDIES HEREUNDER AND UNDER THE
COLLATERAL DOCUMENTS, AND (B) THE AVAILABILITY OF SUCH

 

89

 

APPOINTMENT AS A REMEDY
UNDER THE FOREGOING CIRCUMSTANCES WAS A MATERIAL FACTOR IN INDUCING THE LENDERS
TO MAKE THE LOANS TO THE BORROWER; AND (III) AGREE TO ENTER INTO ANY AND
ALL STIPULATIONS IN ANY LEGAL ACTIONS, OR AGREEMENTS OR OTHER INSTRUMENTS IN
CONNECTION WITH THE FOREGOING AND TO COOPERATE FULLY WITH THE ADMINISTRATIVE
AGENT AND THE LENDERS IN CONNECTION WITH THE ASSUMPTION AND EXERCISE OF CONTROL
BY THE RECEIVER OVER ALL OR ANY PORTION OF THE COLLATERAL.  THE LENDERS AND THE ADMINISTRATIVE AGENT
ACKNOWLEDGE AND AGREE THAT NOTHING IN THIS SECTION 8.2 SHALL BE DEEMED TO
CONSTITUTE A WAIVER OF THE CREDIT PARTIES’ RIGHT TO FILE FOR PROTECTION UNDER
TITLE 11 OF THE UNITED STATES CODE AT ANY TIME PRIOR TO THE APPOINTMENT OF A
RECEIVER.

 

ARTICLE
IX

The Administrative Agent

 

9.1           Appointment
and Authorization.  Each of
the Lenders hereby irrevocably appoints Wilmington Trust FSB as its
Administrative Agent and authorizes the Administrative Agent to take such
actions on its behalf and to exercise such powers as are delegated to the
Administrative Agent by the terms of this Agreement and the other Loan
Documents, together with such actions and powers as are reasonably incidental
thereto.

 

9.2           Agents’
Rights as Lenders.  Any Lender
serving as an Administrative Agent hereunder shall have the same rights and
powers in its capacity as a Lender hereunder as any other Lender and may
exercise the same as though it were not an Administrative Agent, and such
Lenders and their Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with any Credit Party or any Subsidiary
or other Affiliate of any thereof as if it were not an Administrative Agent
hereunder.

 

9.3           Duties As
Expressly Stated.  The
Administrative Agent shall not have any duties or obligations except those
expressly set forth in this Agreement and the other Loan Documents.  Without limiting the generality of the
foregoing, (a) the Administrative Agent shall not be subject to any
fiduciary or other implied duties, regardless of whether a Default has occurred
and is continuing, (b) the Administrative Agent shall not have any duty to
take any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated by this Agreement and
the other Loan Documents that the Administrative Agent are required to exercise
in writing by the Required Lenders, and (c) except as expressly set forth
herein and in the other Loan Documents, the Administrative Agent shall not have
any duty to disclose, and shall not be liable for the failure to disclose, any
information relating to any Credit Party or any of their respective
Subsidiaries that is communicated to or obtained by Wilmington Trust FSB or any
of its Affiliates in any capacity.  The
Administrative Agent shall not be liable for any action taken or not taken by
it with the consent or at the request of the Required Lenders or, if provided
herein, with the consent or at the request of the Required Lenders, or in the
absence of its own gross negligence or willful misconduct.  The Administrative Agent shall not be deemed
to have knowledge of any Default unless and until written notice thereof is
given to the Administrative Agent by the Borrower or a Lender, and the
Administrative Agent shall not 

 

90

 

be responsible for or
have any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with this Agreement or the other Loan
Documents, (ii) the contents of any certificate, report or other document
delivered hereunder or under any of the other Loan Documents or in connection
herewith of therewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth herein or in any
other Loan Document, (iv) the validity, enforceability, effectiveness or
genuineness of this Agreement, the other Loan Documents or any other agreement,
instrument or document, (v) the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of, or the perfection or
priority of any Lien or security interest created or purported to be created
under or in connection with, any Loan Document or any other instrument or
document furnished pursuant thereto, or (vi) the satisfaction of any
condition set forth in Article V or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the
Administrative Agent.  The Administrative
Agent shall not, except to the extent expressly instructed by the Required
Lenders with respect to collateral security under the Collateral Documents, be
required to initiate or conduct any litigation or collection proceedings
hereunder or under any other Loan Document; provided, however,
that the Administrative Agent shall not be required to take any action which
exposes the Administrative Agent to personal liability or which is contrary to
the Loan Documents or applicable law.

 

9.4           Reliance By
Administrative Agent.  The
Administrative Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine
and to have been signed or sent by the proper Person.  The Administrative Agent also may rely upon
any statement made to it orally or by telephone and believed by it to be made
by the proper Person, and shall not incur any liability for relying
thereon.  The Administrative Agent may
consult with legal counsel (who may be counsel for the Borrower), independent
accountants and other experts selected by them, and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such
counsel, accountants or experts.

 

9.5           Action
Through Sub-Administrative Agents. 
The Administrative Agent may perform any and all of its duties, and
exercise its rights and powers, by or through any one or more
sub-Administrative Agents appointed by the Administrative Agent in good
faith.  The Administrative Agent and any
such sub-Administrative Agent may perform any and all its duties and exercise
its rights and powers through its Related Parties.  The exculpatory provisions of the preceding
paragraphs shall apply to any such sub-Administrative Agent and to the Related
Parties of the Administrative Agent and any such sub-Administrative Agent.

 

9.6           Resignation
of Administrative Agent and Appointment of Successor Administrative Agent.  Subject to the appointment and acceptance of
a successor Administrative Agent, as provided in this paragraph, the
Administrative Agent may resign at any time by notifying the Lenders and the
Borrower.  Upon any such resignation, the
Required Lenders shall have the right, in consultation with the Borrower, to
appoint a successor Administrative Agent. 
If no successor shall have been so appointed and shall have accepted
such appointment within 30 days after such retiring Administrative Agent gives
notice of its resignation, then such retiring Administrative Agent may, on
behalf of the Lenders, appoint a successor Administrative Agent, which shall be
a bank with an office in Boston, Massachusetts or New York, New York, or an
Affiliate of any such bank.  Upon the
acceptance of its 

 

91

 

appointment as an
Administrative Agent, by a successor, such successor shall succeed to and
become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent, and the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder and under the other Loan
Documents.  The fees payable by the Borrower
to a successor Administrative Agent shall be the same as those payable to its
predecessor unless otherwise agreed between the Borrower and such
successor.  After an Administrative Agent’s
resignation hereunder, the provisions of this Article and Section 10.3
shall continue in effect for its benefit in respect of any actions taken or
omitted to be taken by it while it was acting as an Administrative Agent.

 

9.7           Lenders’
Independent Decisions.  Each
Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. 
Each Lender also acknowledges that it will, independently and without
reliance upon the Administrative Agent or any other Lender and based on such
documents and information as it shall from time to time deem appropriate,
continue to make its own decisions in taking or not taking action under or
based upon this Agreement and the other Loan Documents, any related agreement
or any document furnished hereunder or thereunder.  Except as explicitly provided herein, the
Administrative Agent has no duty or responsibility, either initially or on a
continuing basis, to provide any Lender with any credit or other information
with respect to such operations, business, property, condition or
creditworthiness, whether such information comes into its possession on or
before the first Event of Default or at any time thereafter.

 

9.8           [Reserved].

 

9.9           Indemnification.
Each Lender agrees to indemnify and hold harmless the Administrative Agent (to
the extent not reimbursed under Section 10.3, but without limiting the
obligations of the Credit Parties under Section 10.3), ratably in
accordance with the aggregate outstanding amount of the Loans held by the
Lenders, for any and all liabilities (including pursuant to any Environmental
Law), obligations, losses, damages, penalties, actions, judgments,
deficiencies, suits, costs, expenses (including reasonable attorney’s fees) or
disbursements of any kind and nature whatsoever that may be imposed on,
incurred by or asserted against the Administrative Agent (including by any
Lender) arising out of or by reason of any investigation in or in any way
relating to or arising out of any Loan Document or any other documents
contemplated by or referred to therein for any action taken or omitted to be
taken by the Administrative Agent under or in respect of any of the Loan
Documents or other such documents or the transactions contemplated thereby or
the enforcement of any of the terms hereof or thereof or of any such other
documents; provided, however, that no Lender shall
be liable for any of the foregoing to the extent they are determined by a court
of competent jurisdiction in a final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of the party to be
indemnified.  Without limiting the
foregoing, each Lender agrees to pay or reimburse the Administrative Agent
promptly upon demand for its ratable share of any costs, fees and expenses
(including without limitation, fees and expenses of counsel) payable by the
Borrower under Sections 10.3 and 2.11, to the extent that the Administrative
Agent is not promptly paid or reimbursed for such costs, fees and expenses by
the Borrower.  The agreements set forth
in this Section 9.9 shall survive the payment of all Loans and other
obligations hereunder and shall be 

 

92

 

in addition to and not in
lieu of any other indemnification agreements contained in any other Loan
Document.

 

9.10        Consents
Under Other Loan Documents. 
Except as otherwise provided in this Agreement and the other Loan
Documents, the Administrative Agent may, with the prior consent of the Required
Lenders (but not otherwise), consent to any modification, supplement or waiver
under any of the other Loan Documents.

 

ARTICLE X

 

Miscellaneous

 

10.1        Notices.  Except in the case of notices and other
communications expressly permitted to be given by telephone, all notices and
other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:

 

(a)           if to any Credit Party,
to 64 Inverness Drive East, Englewood, Colorado 80112, Attention of Thomas F.
Wolfe (Telecopy No. (303) 792-7322);

 

(b)           if to the
Administrative Agent, to Wilmington Trust FSB, 50 South Sixth Street, Suite 1290,
Minneapolis, MN 55402, Attention: 
Jeffery T. Rose (Telecopy No. (612 -217-5651)), with a copy to
Ropes & Gray LLP, 1211 Avenue of the Americas, New York, NY  10036, Attention.  Mark R. Somerstein (Telecopy No. (212)
596-9090)); and

 

(c)           if to any Lender, to it
at its address (or telecopy number) set forth in its Administrative
Questionnaire.

 

Any party hereto may
change its address or telecopy number for notices and other communications
hereunder by notice to the other parties hereto.  All notices and other communications given to
any party hereto in accordance with the provisions of this Agreement shall be
deemed to have been given on the date of receipt.

 

10.2        Waivers; Amendments.

 

(a)           No
failure or delay by the Administrative Agent or any Lender in exercising any right
or power hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative
Agent and the Lenders hereunder are cumulative and are not exclusive of any
rights or remedies that they would otherwise have.  No waiver of any provision of this Agreement
or consent to any departure by any Credit Party therefrom shall in any event be
effective unless the same shall be permitted by the Section 10.2(b), and
then such waiver or consent shall be effective only in the specific instance
and for the purpose for which given. 
Without limiting the generality of the foregoing, the making of a Loan
shall not be construed as a waiver of any Default, regardless of whether the
Administrative Agent or any Lender may have had notice or knowledge of such
Default at the time.

 

93

 

(b)         Neither this Agreement
nor any provision hereof may be waived, amended or modified except pursuant to
an agreement or agreements in writing entered into by the Borrower and the
Required Lenders or by the Borrower and the Administrative Agent with the consent
of the Required Lenders; provided, in
each case, that no such agreement shall:

 

(i)                    increase
any Commitment of any Lender without the written consent of such Lender;

 

(ii)                   reduce
the principal amount of any Loan or reduce the rate of interest thereon, or
reduce any fees payable hereunder, without the written consent of each Lender
affected thereby;

 

(iii)                  postpone
the scheduled date of payment of the principal amount of any Loan, or any
interest thereon, or any fees payable under this Agreement, or reduce the
amount of, waive or excuse any such payment, change the maturity date of any
Loan or postpone the scheduled date of expiration of any Commitment, without
the written consent of each Lender affected thereby;

 

(iv)                  change
Section 2.10(c) hereof in a manner that would alter the application
of prepayments thereunder, without in each case the written consent of each
Lender;

 

(v)                   alter
the rights or obligations of the Borrower to prepay Loans, other than mandatory
prepayments required by Section 2.10(b) of this Agreement, without
the written consent of each Lender; provided
that Section 2.10(b)(ii) of this Agreement may not be amended in a
manner adverse to the Effective Date Assignee or its assigns without the
consent of the Effective Date Assignee or its assigns;

 

(vi)                  change
any of the provisions of this Section 10.2 or the definition of “Required
Lenders” or any other provision hereof specifying the number or percentage of
Lenders required to waive, amend or modify any rights hereunder or under any other
Loan Document or make any determination or grant any consent hereunder or
thereunder, without the written consent of each Lender;

 

(vii)                 release
any of the Guarantors from their obligations in respect of its Guarantee under Article III
hereof or release all or substantially all of the Collateral (or terminate any
Lien with respect thereto), except in connection with a disposition of all of
the shares of capital stock of a subsidiary in a transaction permitted
hereunder, under this Agreement, or as to which the Required Lenders have
provided their prior written consent or as otherwise expressly permitted in
this Agreement, without the written consent of each Lender;

 

(viii)                waive
any of the conditions precedent specified in Section 5.1 hereof, without
the written consent of each Lender and the Administrative Agent;

 

(ix)                   [Reserved];
or

 

94

 

(x)                    change
Section 2.17 of this Agreement in a manner that would alter the pro rata
sharing of payments required hereby;

 

provided  further that no
such agreement shall amend, modify or otherwise affect the rights or duties of
the Administrative Agent hereunder without the prior written consent of the
Administrative Agent.

 

(c)          None
of the Collateral Documents nor any provision thereof may be waived, amended or
modified except pursuant to an agreement or agreements in writing entered into
by the Credit Parties party thereto, and by the Administrative Agent with the
consent of the Required Lenders.

 

(d)         The
Administrative Agent and the Lenders agree that if all of the capital stock of
or other equity interests in any Subsidiary that is owned by the Credit Parties
is sold or distributed to any Person as permitted by the terms of this
Agreement, the Loan Documents and the Collateral Documents, or if any
Subsidiary is merged or consolidated with or into any other Person as permitted
by the terms of the Loan Documents and such Subsidiary is not the continuing or
surviving corporation, the Administrative Agent shall, upon request of the
Borrower (and upon the receipt by the Administrative Agent of such evidence as
the Administrative Agent or any Lender may reasonably request to establish that
such sale, distribution, merger or consolidation is permitted by the terms of
this Agreement), terminate the Guarantee of such Subsidiary under Article 3
hereof and authorize the Administrative Agent to release the Lien created by
the Collateral Documents on any capital stock of or other equity interests in
such Subsidiary.

 

10.3       Expenses; Indemnity:  Damage
Waiver.

 

(a)           The Credit Parties jointly and
severally agree to pay, or reimburse the Administrative Agent or Lenders for
paying, (i) all reasonable out-of-pocket expenses incurred by the
Administrative Agent, including the reasonable fees, charges and disbursements
of counsel, in connection with the syndication of the credit facilities
provided for herein, the preparation of this Agreement and the other Loan
Documents or any amendments, modifications or waivers of the provisions hereof
or thereof (whether or not the transactions contemplated hereby or thereby
shall be consummated), (ii) all out-of-pocket expenses incurred by the
Administrative Agent, or any Lender, including the fees, charges and
disbursements of any counsel for such Administrative Agent, or the Lenders, in
connection with the enforcement or protection of its rights in connection with
this Agreement and the other Loan Documents, including its rights under this Section 10.3,
or in connection with the Loans made hereunder, including in connection with
any workout, restructuring or negotiations in respect thereof, and (iii) all
transfer, stamp, documentary or other similar taxes, assessments or charges
levied by any governmental or revenue authority in respect of this Agreement or
any of the other Loan Documents or any other document referred to herein or
therein and all costs, expenses, taxes, assessments and other charges incurred
in connection with any filing, registration, recording or perfection of any
security interest contemplated by any Collateral Document or any other document
referred to therein.

 

(b)           The Credit Parties jointly and
severally agree to indemnify the Administrative Agent, each Lender and each
Related Party of any of the foregoing Persons (each such Person being called an
“Indemnitee”) against, and hold each Indemnitee harmless from, any 

 

95

 

and all losses, claims,
damages, liabilities and related expenses, including the fees, charges and
disbursements of any counsel for any Indemnitee, incurred by or asserted
against any Indemnitee arising out of, in connection with, or as a result of (i) the
execution or delivery of this Agreement, the other Loan Documents or any
agreement or instrument contemplated hereby, the performance by the parties
hereto and thereto of their respective obligations hereunder or thereunder or
the consummation of the Transactions or any other transactions contemplated
hereby or thereby, (ii) any Loan or the use of the proceeds therefrom, (iii) any
actual or alleged presence or release of Hazardous Materials on or from any
property owned or operated by any Credit Party or any of their subsidiaries, or
any Environmental Liability related in any way to any Credit Party or any of
their subsidiaries, or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory and regardless of whether any Indemnitee is
a party thereto; provided that such indemnity
shall not, as to any Indemnitee, be available to the extent that such losses,
claims, damages, liabilities or related expenses (are determined by a court of
competent jurisdiction by final and nonappealable judgment to have) resulted
from the gross negligence or willful misconduct of such Indemnitee.

 

The
Credit Parties agree that, without the prior written consent of the
Administrative Agent and the Required Lenders, which consent shall not be
unreasonably withheld, no Credit Party will settle, compromise or consent to
the entry of any judgment in any pending or threatened proceeding in respect of
which indemnification is reasonably likely to be sought under the
indemnification provisions of this Section 10.3 (whether or not any
Indemnitee is an actual or potential party to such proceeding), unless such
settlement, compromise or consent includes an unconditional written release of
each Indemnitee from all liability arising out of such proceeding and does not
include any statement as to an admission of fault, culpability or failure to
act by or on behalf of any Indemnitee and does not involve any payment of money
or other value by any Indemnitee or performance of any obligation by an
Indemnitee or any injunctive relief or factual findings or stipulations binding
on any Indemnitee.

 

(c)           To the extent that the Credit Parties
fail to pay any amount required to be paid by them to the Administrative Agent
under paragraph (a) or (b) of this Section 10.3, each Lender
severally agrees to pay to the Administrative Agent such Lender’s Applicable
Percentage (determined as of the time that the applicable unreimbursed expense
or indemnity payment is sought) of such unpaid amount; provided
that the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against the
Administrative Agent in its capacity as such.

 

(d)           To the extent permitted by applicable
law, none of the Credit Parties shall assert, and each Credit Party hereby
waives, any claim against any Indemnitee, on any theory of liability, for
special, indirect, consequential or punitive damages (as opposed to direct or
actual damages) arising out of, in connection with, or as a result of, this
Agreement, the other Loan Documents or any agreement or instrument contemplated
hereby or thereby, the Transactions, any Loan or the use of the proceeds
thereof.

 

(e)           All amounts due under this Section 10.3
shall be payable promptly after written demand therefor.

 

96

 

10.4       Successors and Assigns.

 

(a)           The provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby, except that (i) no
Credit Party may assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by any Credit Party without such consent shall be null
and void) and (ii) no Lender may assign or otherwise transfer its rights
or obligations hereunder except in accordance with this Section.  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby, Participants
(to the extent provided in paragraph (c) of this Section) and, to the
extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent and the Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

 

(b)           The Lenders may assign their
interests hereunder as follows:

 

(i)            Subject
to the conditions set forth in paragraph (b)(ii) below, any Lender may
assign to one or more assignees all or a portion of its rights and obligations
under this Agreement (including all or a portion of its Commitment and the
Loans at the time owing to it).

 

(ii)           Assignments
by Lenders shall be subject to the following conditions:

 

(A)          [Reserved],

 

(B)           each
partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement;

 

(C)           the
parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Acceptance, together with a processing and recordation
fee of $3,500, and

 

(D)          the
assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire.

 

(iii)          Subject
to acceptance and recording pursuant to paragraph (iv) of this Section 10.4,
from and after the effective date specified in each Assignment and Acceptance,
the assignee thereunder shall be a party hereto and, to the extent of the
interest assigned by such Assignment and Acceptance, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Acceptance, be released from its obligations under this Agreement (and, in the
case of an Assignment and Acceptance covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of Sections
2.14, 2.15, 2.16 and 10.3). 
Notwithstanding anything therein to the contrary, no Approved Fund shall
be entitled to receive any 

 

97

 

greater amount
pursuant to Sections 2.14, 2.15 and 2.16 than the transferor Lender
would have been entitled to receive in respect of the assignment effected by
such transferor Lender had no assignment occurred.  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
paragraph (b) shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance
with paragraph (c) of this Section.

 

(iv)          The
Administrative Agent, acting for this purpose as an agent of the Borrower,
shall maintain at such of its offices as set forth in Section 10.1 or
otherwise, designated by the Administrative Agent each Assignment and
Acceptance delivered to it and a register for the recordation of the names and
addresses of the Lenders and the Commitment of, and principal amount of the
Loans owing to, each Lender pursuant to the terms hereof from time to time (the
“Register”).  The entries in the
Register shall be conclusive, absent manifest error, and the Borrower, the
Administrative Agent, and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for
inspection by the Borrower and any Lender, at any reasonable time and from time
to time upon reasonable prior notice.

 

(v)           Upon
its receipt of a duly completed Assignment and Acceptance executed by an
assigning Lender and an assignee, the assignee’s completed Administrative
Questionnaire (unless the assignee shall already be a Lender hereunder), the
processing and recordation fee referred to in paragraph (b)(ii)(C) of this
Section 10.4, the Administrative Agent shall accept such Assignment and
Acceptance and record the information contained therein in the Register.  No assignment shall be effective for purposes
of this Agreement unless it has been recorded in the Register as provided in
this paragraph.

 

(c)           The Lenders may sell participations
in their interests hereunder as follows:

 

(i)            Any
Lender may, without the consent of or notice to the Borrower or the
Administrative Agent, sell participations to one or more banks or other
entities (a “Participant”) in all or a portion of such Lender’s rights
and obligations under this Agreement (including all or a portion of the Loans
owing to it); provided that (A) such
Lender’s obligations under this Agreement shall remain unchanged, (B) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (C) the Borrower, the Administrative
Agent, and the other Lenders shall continue to deal solely and directly with
such Lender in connection with such Lender’s rights and obligations under this
Agreement. Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; provided that
such agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver
described in the first proviso to Section 10.2(b), that affects 

 

98

 

such
Participant.  Subject to paragraph (c)(ii) of
this Section 10.4, the Borrower agrees that each Participant shall be
entitled to the benefits of Sections 2.14, 2.15, 2.16 and 10.3 to the same
extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (b) of this Section 10.4.

 

(ii)           A
Participant shall not be entitled to receive any greater payment under Section 2.14
or 2.16 than the applicable Lender would have been entitled to receive with
respect to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrower’s prior written
consent.  A Participant that would be a
Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.16
unless the Borrower is notified of the participation sold to such Participant
and such Participant agrees, for the benefit of the Borrower, to comply with Section 2.16(e) as
though it were a Lender.

 

(d)           Any Lender may at any time pledge or
assign a security interest in all or any portion of its rights under this
Agreement to secure obligations of such Lender, including any such pledge or
assignment to a Federal Reserve Bank, and this Section shall not apply to
any such pledge or assignment of a security interest; provided
that no such pledge or assignment of a security interest shall release a Lender
from any of its obligations hereunder or substitute any such assignee for such
Lender as a party hereto.

 

(e)           Anything in this Section 10.4 to
the contrary notwithstanding, no Lender may assign or participate any interest
in any Loan held by it hereunder to any Credit Party or any of its Affiliates
or Subsidiaries without the prior consent of each Lender.

 

(f)            A Lender may furnish any information
concerning any Credit Party or Subsidiary or Affiliate in the possession of
such Lender from time to time to assignees and participants (including
prospective assignees and participants) subject, however, to and so long as the
recipient agrees in writing to be bound by, the provisions of Section 10.13.  In addition, the Administrative Agent may
furnish any information concerning any Credit Party or any of its Subsidiaries
or Affiliates in the Administrative Agent’s possession to any Affiliate of the
Administrative Agent, subject, however, to the provisions of Section 10.13.  The Credit Parties shall assist any Lender in
effectuating any assignment or participation pursuant to this Section 10.4
(including during syndication) in whatever manner such Lender reasonably deems
necessary, including participation in meetings with prospective transferees.

 

10.5       Survival.  All covenants, agreements, representations
and warranties made by the Credit Parties herein and in the other Loan
Documents, and in the certificates or other instruments delivered in connection
with or pursuant to this Agreement and the other Loan Documents, shall be
considered to have been relied upon by the other parties hereto and shall
survive the execution and delivery of this Agreement and the other Loan
Documents and the making of any Loans and issuance of any Letters of Credit,
regardless of any investigation made by any such other party or on its behalf
and notwithstanding that the Administrative Agent or any Lender may have had
notice or knowledge of any Default or incorrect representation or warranty at
the time any credit is extended hereunder, and shall continue in full force and
effect so long as the principal of or any accrued interest on any Loan or any
fee or any other amount payable under this Agreement or the other Loan
Documents is outstanding and unpaid.  The
provisions of 

 

99

 

Sections 2.14, 2.15, 2.16
and 10.3 and Article IX shall survive and remain in full force and effect
regardless of the consummation of the transactions contemplated hereby, the
repayment of the Loans, the expiration or termination of the Commitments or the
termination of this Agreement or any other Loan Document or any provision
hereof or thereof.

 

10.6       Counterparts; Integration;
References to Agreement; Effectiveness.  This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original, but all of which when taken together
shall constitute a single contract.  This
Agreement and any separate letter agreements with respect to fees payable to
the Administrative Agent and the Lenders constitute the entire contract among
the parties relating to the subject matter hereof and supersede any and all
previous agreements and understandings, oral or written, relating to the subject
matter hereof.  Whenever there is a
reference in any Collateral Document or UCC Financing Statement to the “Credit
Agreement” to which the Administrative Agent, the Lenders and the Credit
Parties are parties, such reference shall be deemed to be made to this
Agreement among the parties hereto. 
Except as provided in Section 5.1, this Agreement shall become
effective when it shall have been executed by the Administrative Agent and when
the Administrative Agent shall have received counterparts hereof which, when
taken together, bear the signatures of each of the other parties hereto, and
thereafter shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. 
Delivery of an executed counterpart of a signature page of this
Agreement by telecopy shall be effective as delivery of a manually executed
counterpart of this Agreement.

 

10.7       Severability.  Any provision of this Agreement held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

 

10.8       Right of Setoff.  If an Event of Default shall have occurred
and be continuing, each Lender is hereby authorized at any time and from time
to time, to the fullest extent permitted by law, to set off and apply any and
all deposits (general or special, time or demand, provisional or final) at any
time held and other indebtedness at any time owing by such Lender to or for the
credit or the account of the Borrower against any of and all the obligations of
the Borrower now or hereafter existing under this Agreement held by such
Lender, irrespective of whether or not such Lender shall have made any demand
under this Agreement and although such obligations may be unmatured.  The rights of each Lender under this Section 10.8
are in addition to any other rights and remedies (including other rights of
setoff) which such Lender may have.

 

10.9       Governing Law; Jurisdiction; Consent to Service of Process.

 

(a)           This Agreement shall be construed in
accordance with and governed by the law of the Commonwealth of Massachusetts.

 

(b)           Each party hereto hereby irrevocably
and unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of the courts of the Commonwealth of 

 

100

 

Massachusetts and of the
United States District Court for the District of Massachusetts, and any
appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement or the other Loan Documents, or for recognition or
enforcement of any judgment, and each of the parties hereto hereby irrevocably
and unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such Massachusetts court (or, to the
extent permitted by law, in such Federal court).  Each of the parties hereto agrees that a
final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.  Nothing in this
Agreement shall affect any right that the Administrative Agent or any Lender
may otherwise have to bring any action or proceeding relating to this Agreement
against any Credit Party or its properties in the courts of any jurisdiction.

 

(c)           Each party hereto hereby irrevocably
and unconditionally waives, to the fullest extent it may legally and
effectively do so, any objection which it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Agreement or the other Loan Documents in any court referred to in
paragraph (b) of this Section 10.9. 
Each of the parties hereto hereby irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

 

(d)           Each party to this Agreement
irrevocably consents to service of process in the manner provided for notices
in Section 10.1.  Nothing in this
Agreement will affect the right of any party to this Agreement to serve process
in any other manner permitted by law.

 

10.10     WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). 
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY
OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER
PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION 10.10.

 

10.11     Headings.  Article and Section headings and
the Table of Contents used herein are for convenience of reference only, are
not part of this Agreement and shall not affect the construction of, or be
taken into consideration in interpreting, this Agreement.

 

10.12     Successor Facility.  This Agreement is intended to supersede the
Existing Credit Agreement and to constitute the “Senior Credit Facility” under and
for all purposes of the Holding Company Notes Indenture.

 

10.13     Confidentiality.  Each Lender agrees to keep confidential
information obtained by it pursuant hereto and the other Loan Documents
confidential in accordance with such 

 

101

 

Lender’s customary practices and agrees that it will only use such
information in connection with the transactions contemplated by this Agreement
and not disclose any of such information other than (a) to such Lender’s
employees, representatives, directors, attorneys, auditors, agents,
professional advisors, trustees or affiliates who are advised of the
confidential nature of such information or to any direct or indirect
contractual counterparty in swap agreements or such contractual counterparty’s
professional advisor (so long as such contractual counterparty or professional
advisor to such contractual counterparty agrees to be bound by the provisions
of this Section 10.13), (b) to the extent such information presently
is or hereafter becomes available to such Lender on a non-confidential basis
from any source of such information that is in the public domain at the time of
disclosure, (c) to the extent disclosure is required by law (including
applicable securities law), regulation, subpoena or judicial order or process (provided that notice of such requirement or order shall be
promptly furnished to the Borrower unless such notice is legally prohibited) or
requested or required by bank, securities, insurance or investment company
regulators or auditors or any administrative body or commission (including the
Securities Valuation Office of the National Association of Insurance
Commissioners) to whose jurisdiction such Lender may be subject, (d) to
any rating agency to the extent required in connection with any rating to be
assigned to such Lender, (e) to assignees or participants or prospective
assignees or participants who agree to be bound by the provisions of this Section 10.13,
(f) to the extent required in connection with any litigation between any
Credit Party and any Lender with respect to the Loans or this Agreement and the
other Loan Documents or (g) with the Borrower’s prior written
consent.  Notwithstanding anything to the
contrary contained in this Agreement, the other Loan Documents or any other
agreements previously entered into or to be entered into by and between the
Borrower and one or more of the Lenders, the Borrower hereby consents to the
disclosure by any Lender of information (the “Investment Information”)
about the Borrower and the Loans, which Investment Information shall be
limited to:  (i) the Borrower’s name
and address; (ii) the nature of the Borrower’s business; (ii) the
title, class, percentage of class, and value of the Loans; (iv) the
amount and general terms of the Loans; (v) such Lender’s relationship
to the Borrower; and (vi) any other information disclosed to rating
agencies in connection with syndication of the Loans or otherwise, or to
any lender in connection with any other credit facility of such Lender provided,
however, that in the event that a Lender files a registration statement
(the “Registration Statement”) under the Securities Act of 1933 and/or
is required to file certain reports (the “Reports”) under the Exchange
Act, the term “Investment Information” as used herein shall include any other
information about the Borrower or the Loans required by law to be included
in the Registration Statement and/or the Reports.

 

10.14     Continued Effectiveness;
No Novation.  Notwithstanding
anything contained herein, the terms of this Agreement are not intended to and
do not serve to effect a novation of the obligations, liabilities or
indebtedness of the Credit Parties under the Existing Credit Agreement.  Instead, it is the express intention of the
parties hereto to reaffirm, amend and restate the obligations, liabilities and
indebtedness created under or otherwise evidenced by the Existing Credit
Agreement that is evidenced by the notes provided for therein and secured by
the collateral contemplated thereby and hereby. 
The Credit Parties acknowledge and confirm that the liens and security
interests granted pursuant to the Loan Documents secure the obligations,
liabilities and indebtedness of the Credit Parties to the Lenders under the
Existing Credit Agreement, as amended and restated hereby, and that the term “Secured
Obligations” used in certain of the Loan Documents (or any other term used
herein to describe or refer to the obligations, liabilities and indebtedness of
the Credit Parties) describes and refers to the Credit 

 

102

 

Parties’ obligations, liabilities and indebtedness hereunder and under
the Existing Credit Agreement, as hereby amended and restated, as the same may
be further amended, modified, supplemented or restated from time to time.  The Loan Documents and all agreements,
documents and instruments executed and delivered in connection with any of the
foregoing shall each be deemed to be amended to the extent necessary to give
effect to the provisions of this Agreement.

 

10.15     Revival and Reinstatement of Obligations.  If the incurrence or payment of the
obligations by any Credit Party, or the transfer to the Lenders of any
property, should for any reason subsequently be declared to be void or voidable
under any state or federal law relating to creditors’ rights, including
provisions of the Bankruptcy Code relating to fraudulent conveyances,
preferences or other voidable or recoverable payments of money or transfers of
property (collectively, a “Voidable Transfer”), and if the Lenders, or
any of them, is required to repay or restore, in whole or in part, any such
Voidable Transfer, or elects to do so upon the reasonable advice of its
counsel, then, as to any such Voidable Transfer, or the amount thereof that the
Lenders, or any of them, is required or elects to repay or restore, and as to
all reasonable costs, expenses and attorneys fees of the Lenders related
thereto, the liability of such Credit Parties automatically shall be revived,
reinstated and restored and shall exist as though such Voidable Transfer had
never been made.

 

103

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.

 

	
   

  	
  BORROWER

  
	
   

  	
   

  
	
   

  	
  AFFINITY GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Thomas Wolfe

  
	
   

  	
  Name:

  	
  Thomas F. Wolfe

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

(Signature Page to Second
Amended and Restated Credit Agreement)

 

 

	
   

  	
  GUARANTORS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AFFINITY BROKERAGE,
  INC.

  
	
   

  	
  AFFINITY GUEST
  SERVICES, INC.

  
	
   

  	
  AFFINITY ROAD AND
  TRAVEL CLUB, INC.

  
	
   

  	
  AGI PRODUCTIONS, INC.

  
	
   

  	
  CAMP COAST TO COAST,
  INC.

  
	
   

  	
  COAST MARKETING GROUP,
  INC.

  
	
   

  	
  EHLERT PUBLISHING
  GROUP, INC.

  
	
   

  	
  GOLF CARD INTERNATIONAL
  CORP.

  
	
   

  	
  GOLF CARD RESORT
  SERVICES, INC. 

  
	
   

  	
  GSS ENTERPRISES, INC.

  
	
   

  	
  POWER SPORTS MEDIA,
  INC.

  
	
   

  	
  TL ENTERPRISES, INC.

  
	
   

  	
  VBI, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Thomas Wolfe

  
	
   

  	
  Name:

  	
  Thomas F. Wolfe

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

[Signature Page]

 

 

	
   

  	
  GUARTANTORS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CAMPING REALTY, INC.

  
	
   

  	
  CAMPING WORLD CARD
  SERVICES, INC.

  
	
   

  	
  CAMPING WORLD, INC.

  
	
   

  	
  CAMPING WORLD INSURANCE
  SERVICES OF KENTUCKY, INC.

  
	
   

  	
  CAMPING WORLD INSURANCE
  SERVICES OF NEVADA, INC.

  
	
   

  	
  CAMPING WORLD INSURANCE
  SERVICES OF TEXAS, INC.

  
	
   

  	
  CWI, INC.

  
	
   

  	
  CW MICHIGAN, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  Kenneth Marshall

  
	
   

  	
  Name:

  	
  Kenneth Marshall

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
				

 

[Signature Page]

 

 

SIGNATURE PAGES OF
ADMINISTRATIVE AGENT AND LENDERS

 

 

	
   

  	
  ADMINISTRATIVE AGENT

  
	
   

  	
   

  
	
   

  	
  WILMINGTON TRUST FSB,
  as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffery
  Rose

  
	
   

  	
  Name:

  	
  Jeffery Rose

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

[Signature Page]

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