Document:

Exhibit 10.1

 

[Published CUSIP Number:
                                ]

 

CREDIT AGREEMENT

 

Dated as of June 29, 2007

 

among

 

KNOLL, INC.,

as the Borrower,

 

THE DOMESTIC SUBSIDIARIES OF
THE BORROWER,

as the Guarantors,

 

BANK OF AMERICA, N.A.,

as Administrative Agent, Swing Line Lender and L/C Issuer,

 

and

 

THE OTHER LENDERS PARTY
HERETO

 

BANC OF AMERICA SECURITIES
LLC,

as Sole Lead Arranger and Sole Book Manager

 

HSBC BANK USA, NATIONAL ASSOCIATION,

as Syndication Agent

 

and

 

CITIZENS BANK,

as Documentation Agent

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  	
  DEFINITIONS AND ACCOUNTING TERMS

  	
   

  
	
  1.01

  	
  Defined Terms

  	
  1

  
	
  1.02

  	
  Other Interpretive Provisions

  	
  26

  
	
  1.03

  	
  Accounting Terms

  	
  27

  
	
  1.04

  	
  Rounding

  	
  27

  
	
  1.05

  	
  Exchange Rates; Currency Equivalents

  	
  27

  
	
  1.06

  	
  Times of Day

  	
  28

  
	
  1.07

  	
  Letter of Credit Amounts

  	
  28

  
	
  ARTICLE II

  	
  THE COMMITMENTS AND CREDIT EXTENSIONS

  	
  28

  
	
  2.01

  	
  Loans

  	
  28

  
	
  2.02

  	
  Borrowings, Conversions and Continuations of Loans

  	
  31

  
	
  2.03

  	
  Letters of Credit

  	
  32

  
	
  2.04

  	
  Swing Line Loans

  	
  40

  
	
  2.05

  	
  Prepayments

  	
  43

  
	
  2.06

  	
  Termination or Reduction of Aggregate Revolving Commitments

  	
  44

  
	
  2.07

  	
  Repayment of Loans

  	
  45

  
	
  2.08

  	
  Interest

  	
  45

  
	
  2.09

  	
  Fees

  	
  46

  
	
  2.10

  	
  Computation of Interest and Fees; Retroactive Adjustments
  of Applicable Rate

  	
  46

  
	
  2.11

  	
  Evidence of Debt

  	
  47

  
	
  2.12

  	
  Payments Generally; Administrative Agent’s Clawback

  	
  47

  
	
  2.13

  	
  Sharing of Payments by Lenders

  	
  49

  
	
  ARTICLE III

  	
  TAXES, YIELD PROTECTION AND ILLEGALITY

  	
  50

  
	
  3.01

  	
  Taxes

  	
  50

  
	
  3.02

  	
  Illegality

  	
  52

  
	
  3.03

  	
  Inability to Determine Rates

  	
  52

  
	
  3.04

  	
  Increased Costs

  	
  52

  
	
  3.05

  	
  Compensation for Losses

  	
  54

  
	
  3.06

  	
  Mitigation Obligations; Replacement of Lenders

  	
  54

  
	
  3.07

  	
  Survival

  	
  55

  
	
  ARTICLE IV

  	
  GUARANTY

  	
  55

  
	
  4.01

  	
  The Guaranty

  	
  55

  
	
  4.02

  	
  Obligations Unconditional

  	
  55

  
	
  4.03

  	
  Reinstatement

  	
  56

  
	
  4.04

  	
  Certain Additional Waivers

  	
  56

  
	
  4.05

  	
  Remedies

  	
  57

  
	
  4.06

  	
  Rights of Contribution

  	
  57

  
	
  4.07

  	
  Guarantee of Payment; Continuing Guarantee

  	
  57

  
	
  ARTICLE V

  	
  CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

  	
  57

  
	
  5.01

  	
  Conditions of Initial Credit Extension

  	
  57

  
	
  5.02

  	
  Conditions to all Credit Extensions

  	
  60

  
	
  ARTICLE VI

  	
  REPRESENTATIONS AND WARRANTIES

  	
  61

  
	
  6.01

  	
  Organization; Power

  	
  61

  

 

i

 

	
  6.02

  	
  Authorization

  	
  61

  
	
  6.03

  	
  Enforceability

  	
  62

  
	
  6.04

  	
  Governmental Approvals

  	
  62

  
	
  6.05

  	
  Financial Statements

  	
  62

  
	
  6.06

  	
  No Material Adverse Change

  	
  63

  
	
  6.07

  	
  Title to Properties; Possession Under Leases

  	
  63

  
	
  6.08

  	
  Subsidiaries

  	
  64

  
	
  6.09

  	
  Litigation; Compliance with Laws

  	
  65

  
	
  6.10

  	
  Agreements

  	
  65

  
	
  6.11

  	
  Federal Reserve Regulations

  	
  65

  
	
  6.12

  	
  Investment Company Act

  	
  65

  
	
  6.13

  	
  Use of Proceeds

  	
  65

  
	
  6.14

  	
  Tax Returns

  	
  66

  
	
  6.15

  	
  No Material Misstatements

  	
  66

  
	
  6.16

  	
  Employee Benefit Plans

  	
  66

  
	
  6.17

  	
  Environmental Matters

  	
  66

  
	
  6.18

  	
  Insurance

  	
  67

  
	
  6.19

  	
  Collateral Documents

  	
  67

  
	
  6.20

  	
  Location of Real Property and Leased Premises

  	
  67

  
	
  6.21

  	
  Labor Matters

  	
  68

  
	
  6.22

  	
  Solvency

  	
  68

  
	
  6.23

  	
  Certain Treasury Regulation Matters

  	
  68

  
	
  6.24

  	
  Foreign Assets Control Regulations, Etc.

  	
  68

  
	
  ARTICLE VII

  	
  AFFIRMATIVE COVENANTS

  	
  69

  
	
  7.01

  	
  Existence; Business and Properties

  	
  69

  
	
  7.02

  	
  Insurance

  	
  69

  
	
  7.03

  	
  Taxes

  	
  71

  
	
  7.04

  	
  Financial Statements, Reports, Etc.

  	
  71

  
	
  7.05

  	
  Litigation and Other Notices

  	
  73

  
	
  7.06

  	
  Information Regarding Collateral

  	
  74

  
	
  7.07

  	
  Maintaining Records; Access to Property and Inspections

  	
  74

  
	
  7.08

  	
  Use of Proceeds

  	
  74

  
	
  7.09

  	
  Further Assurances

  	
  75

  
	
  7.10

  	
  Certain Treasury Regulation Matters

  	
  76

  
	
  7.11

  	
  Environmental Laws

  	
  76

  
	
  7.12

  	
  Post-Closing Obligations

  	
  77

  
	
  ARTICLE VIII

  	
  NEGATIVE COVENANTS

  	
  77

  
	
  8.01

  	
  Indebtedness

  	
  77

  
	
  8.02

  	
  Liens

  	
  79

  
	
  8.03

  	
  Sale and Lease-Back Transactions

  	
  81

  
	
  8.04

  	
  Investments, Loans and Advances

  	
  81

  
	
  8.05

  	
  Mergers, Consolidations, Sales of Assets and Acquisitions

  	
  82

  
	
  8.06

  	
  Restricted Payments; Restrictive Agreements

  	
  83

  
	
  8.07

  	
  Transactions with Affiliates

  	
  84

  
	
  8.08

  	
  Business of Borrower and Subsidiaries

  	
  84

  
	
  8.09

  	
  Amendments of Subordinated Indebtedness

  	
  84

  

 

ii

 

	
  8.10

  	
  Capital Expenditures

  	
  84

  
	
  8.11

  	
  Financial Covenants

  	
  85

  
	
  8.12

  	
  Fiscal Year

  	
  85

  
	
  ARTICLE IX

  	
  EVENTS OF DEFAULT AND REMEDIES

  	
  85

  
	
  9.01

  	
  Events of Default

  	
  85

  
	
  9.02

  	
  Application of Funds

  	
  88

  
	
  ARTICLE X

  	
  ADMINISTRATIVE AGENT

  	
  89

  
	
  10.01

  	
  Appointment and Authority

  	
  89

  
	
  10.02

  	
  Rights as a Lender

  	
  89

  
	
  10.03

  	
  Exculpatory Provisions

  	
  89

  
	
  10.04

  	
  Reliance by Administrative Agent

  	
  90

  
	
  10.05

  	
  Delegation of Duties

  	
  90

  
	
  10.06

  	
  Resignation of Administrative Agent

  	
  91

  
	
  10.07

  	
  Non-Reliance on Administrative Agent and Other Lenders

  	
  91

  
	
  10.08

  	
  No Other Duties; Etc.

  	
  92

  
	
  10.09

  	
  Administrative Agent May File Proofs of Claim

  	
  92

  
	
  10.10

  	
  Collateral and Guaranty Matters

  	
  92

  
	
  ARTICLE
  XI

  	
  MISCELLANEOUS

  	
  93

  
	
  11.01

  	
  Amendments, Etc.

  	
  93

  
	
  11.02

  	
  Notices and Other Communications; Facsimile Copies

  	
  95

  
	
  11.03

  	
  No Waiver; Cumulative Remedies

  	
  97

  
	
  11.04

  	
  Expenses; Indemnity; and Damage Waiver

  	
  97

  
	
  11.05

  	
  Payments Set Aside

  	
  98

  
	
  11.06

  	
  Successors and Assigns

  	
  99

  
	
  11.07

  	
  Treatment of Certain Information; Confidentiality

  	
  102

  
	
  11.08

  	
  Set-off

  	
  103

  
	
  11.09

  	
  Interest Rate Limitation

  	
  103

  
	
  11.10

  	
  Counterparts; Integration; Effectiveness

  	
  104

  
	
  11.11

  	
  Survival of Representations and Warranties

  	
  104

  
	
  11.12

  	
  Severability

  	
  104

  
	
  11.13

  	
  Replacement of Lenders

  	
  104

  
	
  11.14

  	
  Governing Law; Jurisdiction; Etc.

  	
  105

  
	
  11.15

  	
  Waiver of Right to Trial by Jury

  	
  106

  
	
  11.16

  	
  USA PATRIOT Act Notice

  	
  106

  
	
  11.18

  	
  Parallel Debt

  	
  107

  

 

iii

 

	
  SCHEDULES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.01(a)

  	
  Mandatory
  Cost Formulae

  	
   

  
	
  1.01(b)

  	
  Existing
  Letters of Credit

  	
   

  
	
  2.01

  	
  Commitments
  and Applicable Percentages

  	
   

  
	
  6.01

  	
  Good
  Standing of Certain Foreign Subsidiaries

  	
   

  
	
  6.02

  	
  Authorizations

  	
   

  
	
  6.04

  	
  Governmental
  Approvals

  	
   

  
	
  6.05(a)

  	
  Material
  Liabilities Not Reflected in Balance Sheet

  	
   

  
	
  6.07

  	
  Intellectual
  Property Rights

  	
   

  
	
  6.08

  	
  Subsidiaries

  	
   

  
	
  6.17

  	
  Environmental
  Reports

  	
   

  
	
  6.18

  	
  Insurance

  	
   

  
	
  6.19(a)

  	
  Filing
  Offices

  	
   

  
	
  6.19(c)

  	
  Mortgage
  Filing Offices

  	
   

  
	
  6.20(a)

  	
  Owned
  Property

  	
   

  
	
  6.20(b)

  	
  Leased
  Property

  	
   

  
	
  8.01

  	
  Existing
  Indebtedness

  	
   

  
	
  8.02

  	
  Existing
  Liens

  	
   

  
	
  8.04

  	
  Existing
  Investments

  	
   

  
	
  11.02

  	
  Certain
  Addresses for Notices

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  2.02

  	
  Form
  of Loan Notice

  	
   

  
	
  2.04

  	
  Form
  of Swing Line Loan Notice

  	
   

  
	
  2.11(a)(i)

  	
  Form
  of Domestic Revolving Note

  	
   

  
	
  2.11(a)(ii)

  	
  Form
  of Euro Revolving Note

  	
   

  
	
  2.11(a)(iii)

  	
  Form
  of Swing Line Note

  	
   

  
	
  7.04

  	
  Form
  of Compliance Certificate

  	
   

  
	
  7.09

  	
  Form
  of Joinder Agreement

  	
   

  
	
  11.06

  	
  Form
  of Assignment and Assumption

  	
   

  

 

iv

 

CREDIT AGREEMENT

 

This
CREDIT AGREEMENT is entered into as of June 29, 2007 among KNOLL, INC., a
Delaware corporation (the “Borrower”), the Guarantors (defined herein),
the Lenders (defined herein) and BANK OF AMERICA, N.A., as Administrative
Agent, Swing Line Lender and L/C Issuer.

 

The
Borrower has requested that the Lenders provide $500,000,000  in credit facilities for the purposes set forth herein, and
the Lenders are willing to do so on the terms and conditions set forth herein.

 

In consideration of the mutual covenants and agreements herein
contained, the parties hereto covenant and agree as follows:

 

ARTICLE I

 

DEFINITIONS AND ACCOUNTING
TERMS

 

1.01         Defined Terms.

 

As
used in this Agreement, the following terms shall have the meanings set forth
below:

 

“Acquisition”,
by any Person, means the acquisition by such Person, in a single transaction or
in a series of related transactions, of all or any substantial portion of the
property of another Person or at least a majority of the Voting Stock of
another Person, in each case whether or not involving a merger or consolidation
with such other Person and whether for cash, property, services, assumption of
Indebtedness, securities or otherwise.

 

“Acquired
CapEx Amount” has the meaning specified in Section 8.10(a).

 

“Acquired Entity” has the meaning
specified in Section 8.04(h).

 

“Administrative
Agent” means Bank of America in its capacity as administrative agent under
any of the Loan Documents, or any successor administrative agent.

 

“Administrative
Agent’s Office” means the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 11.02 or such other
address or account as the Administrative Agent may from time to time notify to
the Borrower and the Lenders.

 

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

 

“Affiliate”
means, with respect to any 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.

 

“Aggregate
Domestic Revolving Commitments” has the meaning specified in Section
2.01(a).

 

“Aggregate
Euro Revolving Commitments” has the meaning specified in Section 2.01(b).

 

 

“Aggregate
Revolving Commitments” means the Domestic Revolving Commitments and the
Euro Revolving Commitments of all the Lenders.

 

“Agreement”
means this Credit Agreement.

 

“Alternative
Currency” means Euro.

 

“Alternative
Currency Equivalent” means, at any time, with respect to any amount
denominated in Dollars, the equivalent amount thereof in the Alternative
Currency as determined by the Administrative Agent or the applicable Issuer, as
the case may be, at such time on the basis of the Spot Rate (determined in
respect of the most recent Revaluation Date) for the purchase of the
Alternative Currency with Dollars.

 

“Alternative
Currency Reserve” means, at any time, the Dollar amount equal to 2.5% of
the Total Revolving Outstandings denominated in the Alternative Currency at
such time.

 

“Applicable
Percentage” means with respect to (a) any Domestic Lender at any time, the
percentage of the Aggregate Domestic Revolving Commitments represented by such
Domestic Lender’s Domestic Revolving Commitment at such time and (b) any Euro
Lender at any time, the percentage of the Aggregate Euro Revolving Commitments
represented by such Euro Lender’s Euro Revolving Commitment; provided
that if the commitment of each Lender to make Revolving Loans and the
obligation of the L/C Issuer to make L/C Credit Extensions have been terminated
pursuant to Section 9.02 or if the Aggregate Revolving Commitments have
expired, then the Applicable Percentage of each Lender shall be determined
based on the Applicable Percentage of such Lender most recently in effect, giving
effect to any subsequent assignments. 
The initial Applicable Percentage of each Lender is set forth opposite
the name of such Lender on Schedule 2.01 or in the Assignment and
Assumption pursuant to which such Lender becomes a party hereto, as applicable.

 

“Applicable
Rate” means with respect to Revolving Loans, Swing Line Loans, Letters of
Credit and the Commitment Fee, the following percentages per annum, based upon
the Consolidated Leverage Ratio as set forth in the most recent Compliance
Certificate received by the Administrative Agent pursuant to Section 7.04(c):

 

	
  Pricing
  Tier

  	
   

  	
  Consolidated

  Leverage Ratio

  	
   

  	
  Commitment

  Fee

  	
   

  	
  Letter of Credit

  Fee

  	
   

  	
  Eurocurrency

  Loans

  	
   

  	
  Base Rate

  Loans

  	
   

  
	
  1

  	
   

  	
  < 1.50 to 1.0

  	
   

  	
  0.125

  	
  %

  	
  0.75

  	
  %

  	
  0.75

  	
  %

  	
  0.00

  	
  %

  
	
  2

  	
   

  	
  > 1.50 to 1.0

  but < 2.00  to 1.0

  	
   

  	
  0.150

  	
  %

  	
  0.875

  	
  %

  	
  0.875

  	
  %

  	
  0.00

  	
  %

  
	
  3

  	
   

  	
  > 2.00 to 1.0

  but < 2.50  to 1.0

  	
   

  	
  0.200

  	
  %

  	
  1.00

  	
  %

  	
  1.00

  	
  %

  	
  0.00

  	
  %

  
	
  4

  	
   

  	
  > 2.50 to 1.0

  but < 3.00  to 1.0

  	
   

  	
  0.250

  	
  %

  	
  1.25

  	
  %

  	
  1.25

  	
  %

  	
  0.25

  	
  %

  
	
  5

  	
   

  	
  > 3.00 to 1.0

  	
   

  	
  0.300

  	
  %

  	
  1.50

  	
  %

  	
  1.50

  	
  %

  	
  0.50

  	
  %

  

 

Any
increase or decrease in the Applicable Rate resulting from a change in the
Consolidated Leverage Ratio shall become effective as of the first Business Day
immediately following the date a Compliance Certificate is required to be
delivered pursuant to Section 7.04(c); provided, however,
that if a Compliance Certificate is not delivered when due in accordance with
such Section, then Pricing Tier 5 shall apply as of the first Business Day
after the date on which such Compliance Certificate was required to have been
delivered and shall continue to apply until the first Business Day immediately
following the 

 

2

 

date
a Compliance Certificate is delivered in accordance with Section 7.04(c),
whereupon the Applicable Rate shall be adjusted based upon the calculation of
the Consolidated Leverage Ratio contained in such Compliance Certificate.  The Applicable Rate in effect from the
Closing Date through the first Business Day immediately following the date a
Compliance Certificate is required to be delivered pursuant to Section
7.04(b) for the fiscal quarter ending September 30, 2007 shall be
determined based upon Pricing Tier 3. 
Notwithstanding anything to the contrary contained in this definition,
the determination of the Applicable Rate for any period shall be subject to the
provisions of Section 2.10(b).

 

“Applicable
Time” means, with respect to any borrowings and payments in the Alternative
Currency, the local time in the place of settlement for the Alternative
Currency as may be determined by the Administrative Agent or the L/C Issuer, as
the case may be, to be necessary for timely settlement on the relevant date in
accordance with normal banking procedures in the place of payment.

 

“Approved
Fund” means any Fund that is administered or managed by (a) a Lender, (b)
an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.

 

“Asset Sale” means the sale,
transfer or other disposition (by way of merger, casualty, condemnation or
otherwise but excluding investments permitted by Section 8.04) by the
Borrower or any of the Subsidiaries to any Person other than the Borrower or
any Guarantor of (a) any Equity Interests of any of the Subsidiaries (other
than directors’ qualifying shares or the sale by any person of Equity Interests
of such person) or (b) any other assets of the Borrower or any of the
Subsidiaries (other than (i) inventory, damaged, obsolete or worn out assets,
scrap and Permitted Investments, in each case disposed of in the ordinary
course of business, (ii) dispositions between or among the Borrower and
Domestic Subsidiaries, (iii) dispositions between or among Foreign
Subsidiaries; and (iv) dispositions of assets from any Loan Party to any
Foreign Subsidiary if the disposition is treated as an investment in the
Foreign Subsidiary and such investment is permitted by Section 8.04).

 

 “Assignee Group” means two or more
Eligible Assignees that are Affiliates of one another or two or more Approved
Funds managed by the same investment advisor.

 

“Assignment
and Assumption” means an assignment and assumption entered into by a Lender
and an Eligible Assignee (with the consent of any party whose consent is
required by Section 11.06(b)), and accepted by the Administrative Agent,
in substantially the form of Exhibit 11.06 or any other form approved by
the Administrative Agent.

 

“Audited
Financial Statements” means the audited consolidated balance sheet of the
Borrower and its Subsidiaries for the fiscal year ended December 31, 2006, and
the related consolidated statements of income or operations, shareholders’
equity and cash flows for such fiscal year of the Borrower and its
Subsidiaries, including the notes thereto, audited by independent public
accountants of recognized national standing and prepared in conformity with
GAAP.

 

“Availability Period” means the period from and including the
Closing Date to the earliest of (a) the Maturity Date, (b) the date of
termination of the Aggregate Revolving Commitments pursuant to Section 2.06,
and (c) the date of termination of the commitment of each Lender to make Loans
and the obligation of the L/C Issuer to make L/C Credit Extensions pursuant to Section
9.02.

 

“Bank of America” means Bank of America, N.A.
and its successors.

 

“BAS” means Banc of America Securities LLC,
in its capacity as sole lead arranger and book manager.

 

3

 

“Base
Rate” means for any day a fluctuating rate per annum equal to the higher of
(a) the Federal Funds Rate plus 0.50% and (b) the rate of interest in
effect for such day as publicly announced from time to time by Bank of America
as its “prime rate.”  The “prime rate” is
a rate set by Bank of America based upon various factors including Bank of
America’s costs and desired return, general economic conditions and other
factors, and is used as a reference point for pricing some loans, which may be
priced at, above, or below such announced rate. 
Any change in the “prime rate” announced by Bank of America shall take
effect at the opening of business on the day specified in the public
announcement of such change.

 

“Base Rate Loan” means a Loan that bears interest based on the Base
Rate.

 

“Borrower” has the meaning specified in the
introductory paragraph hereto.

 

“Borrower Materials” has the meaning
specified in Section 7.04.

 

“Borrowing”
means a borrowing consisting of simultaneous Loans of the same Type and, in the
case of Eurocurrency Rate Loans, having the same Interest Period made by each
of the Lenders pursuant to Section 2.01.

 

“Business
Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact
closed in, the state where the Administrative Agent’s Office with respect to
Obligations denominated in Dollars is located and;

 

(a) if such day relates to any interest rate settings as to a
Eurocurrency Rate Loan denominated in Dollars, any fundings, disbursements,
settlements and payments in Dollars in respect of any such Eurocurrency Rate
Loan, or any other dealings in Dollars to be carried out pursuant to this
Agreement in respect of any such Eurocurrency Rate Loan, means any such day on
which dealings in deposits in Dollars are conducted by and between banks in the
London interbank eurodollar market; and

 

(b)           if such day
relates to any interest rate settings as to a Eurocurrency Rate Loan
denominated in Euro, any fundings, disbursements, settlements and payments in
Euro in respect of any such Eurocurrency Rate Loan, or any other dealings in
Euro to be carried out pursuant to this Agreement in respect of any such
Eurocurrency Rate Loan, means a TARGET Day.

 

“Businesses”
means, at any time, a collective reference to the businesses operated by the
Borrower and its Subsidiaries at such time.

 

“Capital Expenditures” means, for
any period, (a) the additions to property, plant and equipment and other
capital expenditures of the Borrower and its consolidated Subsidiaries that are
(or should be) set forth in a consolidated statement of cash flows of the
Borrower for such period prepared in accordance with GAAP and (b) Capital Lease
Obligations or Synthetic Lease Obligations incurred by the Borrower and its
consolidated Subsidiaries during such period, but excluding in each case (i)
any such expenditure made to restore, replace or rebuild property to the
condition of such property immediately prior to any damage, loss, destruction
or condemnation of such property, to the extent such expenditure is made with
insurance proceeds, condemnation awards or damage recovery proceeds relating to
any such damage, loss, destruction or condemnation, (ii) any such expenditure
made as the purchase price of any Permitted Acquisition, (iii) capital
expenditures relating to the construction or acquisition of any property that
has been transferred to a person (other than the Borrower or any Subsidiary)
pursuant to a sale-leaseback transaction permitted under Section 8.03,
(iv) interest capitalized during such period, (v) the purchase price of
equipment that is purchased during such period to the extent the consideration
therefor consists of any combination of (x) used or surplus equipment traded in
at the time of such purchase and (y) the 

 

4

 

proceeds
of a concurrent sale of used or surplus equipment, in each case, in the
ordinary course of business, (vi) the purchase price of equipment that is
purchased substantially contemporaneously with the trade-in of existing
equipment to the extent that the gross amount of the such price is reduced by
the credit granted by the seller of such equipment for the equipment being
traded at such time, (vii) any capital expenditures made with proceeds received
from an Asset Sale, or (viii) expenditures that constitute Permitted
Acquisitions.

 

“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 Collateralize” has the meaning specified in Section
2.03(g).

 

“Cash
Management Obligations” means obligations owed by the Borrower or any of
its Subsidiaries to any Lender or any Affiliate of a Lender in respect of any
Treasury Management Agreement.

 

“Change
in Law” means the occurrence, after the date of this Agreement, of any of
the following: (a) the adoption or taking effect of any law, rule, regulation
or treaty, (b) any change in any law, rule, regulation or treaty or in the
administration, interpretation or application thereof by any Governmental
Authority or (c) the making or issuance of any request, guideline or directive
(whether or not having the force of law) by any Governmental Authority.

 

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

 

(a)           any “person” or “group”
(within the meaning of the Securities Exchange Act of 1934 and the rules of the
SEC thereunder as in effect on the date hereof) becomes, directly or
indirectly, the beneficial owner of Equity Interests in the Borrower
representing more than 40% or more of the Equity Interests of the Borrower
entitled to vote for members of the board of directors or equivalent governing
body of the Borrower on a fully-diluted basis (and taking into account all such
securities that such person or group has the right to acquire pursuant to any
option right);

 

(b)           at any time, occupation of a
majority of the seats (other than vacant seats) on the board of directors of
the Borrower by persons who were neither nominated by the board of directors of
the Borrower nor appointed by directors so nominated; or

 

(c)           the occurrence of any change
in control or similar event (however denominated) with respect to the Borrower
under and as defined in any indenture or agreement in respect of Material
Indebtedness to which the Borrower or a Subsidiary is a party.

 

“Closing
Date” means the date hereof.

 

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

 

“Collateral
Documents” means a collective reference to the Security Agreement, the
Mortgages and other security documents as may be executed and delivered by the
Loan Parties pursuant to the terms of Section 7.09.

 

5

 

“Commitment” means, as to each Lender, the Domestic Revolving
Commitment and the Euro Revolving Commitment of such Lender.

 

“Compliance Certificate” has the meaning
specified in Section 7.04(c) and shall be substantially in the form of Exhibit
7.04.

 

“Consolidated EBITDA”
means, for any period, Consolidated Net Income for such period plus (a) without
duplication and to the extent deducted in determining such Consolidated Net Income,
the sum of (i) Consolidated Interest Expense for such period,
(ii) all amounts for taxes based on income, profits or capital and
commercial activity payments to taxing authorities (or in each case similar
taxes or payments), including, without limitation, income tax expense of
consolidated Foreign Subsidiaries and foreign withholding tax expense for such
period, (iii) all amounts attributable to depreciation and amortization
for such period, (iv) any non-recurring fees, cash charges and other cash
expenses made or incurred in connection with the Transactions that are paid or
otherwise accounted for within 180 days of the consummation of the
Transactions, (v) any extraordinary losses, (vi) (A) facilities
relocation or closing costs, (B) non-recurring restructuring costs and
(C) integration costs and fees, including cash severance costs, in
connection with Permitted Acquisitions, in each case incurred during such
period and payable in cash, in an aggregate amount under this clause (vi)
not to exceed $10,000,000, (vii) amortization and impairment charges resulting
from purchase accounting adjustments (including inventory step-up adjustments
recognized in costs of sales and write-offs of in-process research and
development costs), (viii) any non-cash compensation charges and deferred
compensation charges, including arising from stock options, taken during such
period, (ix) any other non-cash charges (other than the write-down of current
assets), impairments and expenses for such period (including amortization of
loan acquisition costs and unrealized gains and losses on Swap Contracts and
gains and losses on foreign exchange (including in respect of intercompany
notes)) and (x) fees, cash charges and other cash expenses made or incurred in
connection with equity or debt financings and amendments and waivers thereto, minus
(b) without duplication (i) all cash payments made during such period
on account of non-cash charges added to Consolidated Net Income pursuant to
clauses (a)(viii) or (ix) above in such period or in a previous period and
(ii) to the extent included in determining such Consolidated Net Income,
any extraordinary gains and all non-cash items of income (other than normal
accruals in the ordinary course of business) for such period, all determined on
a consolidated basis in accordance with GAAP.

 

“Confidential Information Memorandum”
means the Confidential Information Memorandum dated June 29, 2007 relating to
the Borrower and the transactions contemplated by this Agreement and the other
Loan Documents.

 

“Consolidated
Interest Coverage Ratio” means, as of any date of determination, the ratio
of (a) Consolidated EBITDA for the period of the four fiscal quarters most
recently ended for which the Borrower has delivered financial statements
pursuant to Section 7.04(a) or (b) to (b) Consolidated Interest
Expense for the period of the four fiscal quarters most recently ended for
which the Borrower has delivered financial statements pursuant to Section
7.04(a) or (b).

 

“Consolidated
Interest Expense” means, for any period, the sum of (a) the interest
expense (including imputed interest expense in respect of Capital Lease
Obligations and Synthetic Lease Obligations), net of cash interest income of
the Borrower and its Subsidiaries for such period, determined on a consolidated
basis in accordance with GAAP, plus (b) any interest accrued during such
period in respect of Indebtedness of the Borrower or any Subsidiary that is
required to be capitalized rather than included in consolidated interest
expense for such period in accordance with GAAP. For purposes of the foregoing,
interest expense shall be determined (a) by excluding non-cash interest
expense and amortization of deferred financing costs and original issue
discount and (b) after giving effect to any net 

 

6

 

payments
made or received by the Borrower or any Subsidiary with respect to interest
rate Swap Contracts.

 

“Consolidated
Leverage Ratio” means, as of any date of determination, the ratio of (a)
the total Indebtedness on a consolidated basis as of such date to (b)
Consolidated EBITDA for the period of the four fiscal quarters most recently
ended for which the Borrower has delivered financial statements pursuant to Section
7.04(a) or (b).

 

“Consolidated Net Income” means,
for any period, the net income or loss of the Borrower and its Subsidiaries
(excluding extraordinary gains and losses) for such period determined on a
consolidated basis in accordance with GAAP; provided, that there shall be excluded (a) the income of any
Subsidiary to the extent that the declaration or payment of dividends or
similar distributions by the Subsidiary of that income is not at the time
permitted by operation of the terms of its charter or any agreement,
instrument, judgment, decree, statute, rule or governmental regulation
applicable to such Subsidiary, (b) the income or loss of any person accrued
prior to the date it becomes a Subsidiary or is merged into or consolidated
with the Borrower or any Subsidiary or the date that such person’s assets are
acquired by the Borrower or any Subsidiary, (c) the income of any person in
which any other person (other than the Borrower or a wholly owned Subsidiary or
any director holding qualifying shares in accordance with applicable law) has a
joint interest, except to the extent of the amount of dividends or other
distributions actually paid to the Borrower or a wholly owned Subsidiary by
such person during such period, (d) any gains or losses attributable to sales
of assets out of the ordinary course of business in excess of $2,500,000 and
(e) gains and losses, realized or unrealized, relating to fluctuations in
currency values.  Notwithstanding
anything set forth in clause (a) above to the contrary, a Foreign Subsidiary
may agree to restrict its ability to declare dividends or similar distributions
without excluding the net income of such Foreign Subsidiary from Consolidated
Net Income so long as (a) the agreement that restricts such ability relates to
Indebtedness of such Foreign Subsidiary described in Section 8.01(i),
(b) the proceeds thereof are used, directly or indirectly through intercompany
transfers, to prepay the Loans and (c) the net income of such Foreign
Subsidiary, together with the net income of each other Foreign Subsidiary
subject to a similar restriction, does not exceed 10% of Consolidated Net
Income.

 

“Consolidated
Net Leverage Ratio” means, as of any date of determination, the ratio of
(a) the total Indebtedness (net of unrestricted cash of the Borrower and its
Domestic Subsidiaries in excess of $15,000,000) on a consolidated basis as of
such date to (b) Consolidated EBITDA for the period of the four fiscal quarters
most recently ended for which the Borrower has delivered financial statements
pursuant to Section 7.04(a) or (b).

 

“Contractual
Obligation” means, as to any Person, any provision of any security issued
by such Person or of any agreement, instrument or other undertaking to which
such Person is a party or by which it or any of its property is bound.

 

“Control”
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.

 

“Copyrights” has the meaning assigned to such term in the Security Agreement.

 

“Credit
Extension” means each of the following: (a) a Borrowing and (b) an L/C
Credit Extension.

 

“Cure
Amount” has the meaning assigned to such term in Article IX.

 

7

 

“Cure
Right” has the meaning assigned to such term in Article IX.

 

“De
Minimis Holders” means, with respect to any wholly owned Subsidiary,
holders of directors’ qualifying shares and other de minimis ownership
interests required to be owned under foreign law by local residents.

 

“Debtor
Relief Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of
creditors, moratorium, rearrangement, receivership, insolvency, reorganization,
or similar debtor relief Laws of the United States or other applicable
jurisdictions from time to time in effect and affecting the rights of creditors
generally.

 

“Default” means any event or condition that constitutes an Event
of Default or that, with the giving of any notice, the passage of time, or both
(as provided in Section 9.01), would be an Event of Default.

 

“Default Rate” means (a) when used with respect to Obligations
other than Letter of Credit Fees, an interest rate equal to (i) the Base Rate plus
(ii) the Applicable Rate, if any, applicable to Base Rate Loans plus
(iii) 2% per annum; provided, however, that with respect to a
Eurocurrency Rate Loan, the Default Rate shall be an interest rate equal to the
interest rate (including any Applicable Rate and any Mandatory Cost) otherwise
applicable to such Loan plus 2% per annum, in each case to the fullest
extent permitted by applicable Laws and (b) when used with respect to Letter of
Credit Fees, a rate equal to the Applicable Rate plus 2% per annum.

 

“Defaulting Lender” means any Lender that (a) has failed to fund
any portion of the Loans, participations in L/C Obligations or participations
in Swing Line Loans required to be funded by it hereunder within one Business
Day of the date required to be funded by it hereunder, (b) has otherwise failed
to pay over to the Administrative Agent or any other Lender any other amount
required to be paid by it hereunder within one Business Day of the date when
due, unless the subject of a good faith dispute, or (c) has been deemed
insolvent or become the subject of a bankruptcy or insolvency proceeding.

 

“Disqualified Preferred
Stock” has the meaning assigned to such term in the definition of “Indebtedness.”

 

“Dollar” and “$”
mean lawful money of the United States.

 

“Dollar
Equivalent” means, at any time, (a) with respect to any amount
denominated in Dollars, such amount, and (b) with respect to any amount
denominated in the Alternative Currency, the equivalent amount thereof in
Dollars as determined by the Administrative Agent or the L/C Issuer, as the
case may be, at such time on the basis of the Spot Rate (determined in respect
of the most recent Revaluation Date) for the purchase of Dollars with the Alternative
Currency.

 

“Domestic
Lenders” means those Lenders with Domestic Revolving Commitments, together
with their successors and permitted assigns. 
The initial Domestic Lenders are identified on the signature pages
hereto and are set out in Schedule 2.01.

 

“Domestic
Revolving Commitment” means, as to each Domestic Lender, its obligation to
(a) make Domestic Revolving Loans to the Borrower pursuant to Section 2.01,
(b) purchase participations in L/C Obligations and (c) purchase participations
in Swing Line Loans, in an aggregate principal amount at any one time
outstanding not to exceed the amount set forth opposite such Domestic Lender’s
name on Schedule 2.01 or in the Assignment and Assumption pursuant to
which such Lender becomes a party 

 

8

 

hereto,
as applicable, as such amount may be adjusted from time to time in accordance
with this Agreement.

 

“Domestic
Revolving Loan” has the meaning provided in Section 2.01(a).

 

“Domestic
Revolving Note” has the meaning specified in Section 2.11(a)(i).

 

“Domestic
Subsidiary” means any Subsidiary that is organized under the laws of any
state of the United States or the District of Columbia.  If a Foreign Subsidiary becomes a Guarantor
and complies with the provisions of Section 7.09 as to collateral, the
Borrower may elect by written notice to the Administrative Agent to treat such
Subsidiary as a Domestic Subsidiary for purposes of the Loan Documents; provided,
that the Administrative Agent concludes, in its reasonable discretion, that the
Lenders would have substantially the same rights against such Subsidiary
pursuant to the Collateral Documents under the law of the relevant foreign
jurisdiction as the Lenders would have if such Subsidiary were organized in the
United States of America.

 

“Eligible Assignee”
means any Person that meets the requirements to be an assignee under Section
11.06(b)(iv) and (v) (subject to such consents, if any, as may be
required under Section 11.06(b)(ii)).

 

“EMU
Legislation” means the legislative measures of the European Council for the
introduction of, changeover to or operation of a single or unified European
currency.

 

 “Environmental
Laws” means all applicable Federal, state, provincial, local and
foreign laws (including common law), treaties, regulations, rules, ordinances,
codes, decrees, judgments, directives having the force of law and orders
(including consent orders), in each case, relating to protection of the
environment or natural resources.

 

“Environmental Liability” means
all liabilities, obligations, damages, losses, claims, actions, suits,
judgments, orders, fines, penalties, fees, expenses and costs (including
administrative oversight costs, natural resource damages and remediation
costs), arising out of or relating to (a) compliance or non-compliance with 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 of any Hazardous Materials or (e) any contract,
agreement or other consensual arrangement pursuant to which liability is
assumed or imposed, or for which an indemnity is granted by the Borrower or any
Subsidiary, with respect to any of the foregoing.

 

“Environmental
Permits” means any and all permits, licenses, approvals, registrations,
notifications, exemptions and any other authorization pursuant to any
Environmental Law.

 

 “Equity Interests”  means, with respect to any Person, all of the
shares of capital stock of (or other ownership or profit interests in) such
Person, all of the warrants, options or other rights for the purchase or
acquisition from such Person of shares of capital stock of (or other ownership
or profit interests in) such Person, all of the securities convertible into or exchangeable
for shares of capital stock of (or other ownership or profit interests in) such
Person or warrants, rights or options for the purchase or acquisition from such
Person of such shares (or such other interests), and all of the other ownership
or profit interests in such Person (including partnership, member or trust
interests therein), whether voting or nonvoting, and whether or not such
shares, warrants, options, rights or other interests are outstanding on any
date of determination.

 

9

 

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

 

“ERISA Affiliate” means any trade
or business (whether or not incorporated) that, together with the Borrower or
any Subsidiary, is treated as a single employer under Section 414(b) or
(c) of the Internal Revenue Code, or solely for purposes of
Section 302 of ERISA and Section 412 of the Internal Revenue Code, is
treated as a single employer under Section 414 of the Internal Revenue
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
Internal Revenue Code or Section 302 of ERISA), whether or not waived; (c) the
filing pursuant to Section 412(d) of the Internal Revenue 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 or the withdrawal or partial
withdrawal of the Borrower or any of its ERISA Affiliates from any Plan or
Multiemployer Plan; (e) the receipt by the Borrower or any of its ERISA
Affiliates from the PBGC or a plan administrator of any notice relating to the
intention to terminate any Plan or Plans or to appoint a trustee to administer
any Plan; (f) the adoption of any amendment to a Plan that would require
the provision of security pursuant to Section 401(a)(29) of the Internal
Revenue Code or Section 307 of ERISA; (g) the receipt by the Borrower
or any of its ERISA Affiliates of any notice, or the receipt by any
Multiemployer Plan from the Borrower or any of its ERISA Affiliates 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; (h) the
occurrence of a “prohibited transaction” with respect to which the Borrower,
any of the Subsidiaries or any ERISA Affiliate is a “disqualified person” (within
the meaning of Section 4975 of the Internal Revenue Code) or with respect
to which the Borrower or any such Subsidiary or ERISA Affiliate could otherwise
be liable; or (i) any other event or condition with respect to a Plan or
Multiemployer Plan that could result in liability of the Borrower or any ERISA
Affiliate.

 

“Euro”
and “EUR” mean the lawful currency of the Participating Member States
introduced in accordance with the EMU Legislation.

 

“Euro
Lenders” means those Lenders with Euro Revolving Commitments, together with
their successors and permitted assigns. 
The initial Euro Lenders are identified on the signature pages hereto
and are set out in Schedule 2.01.

 

“Euro
Revolving Commitment” means, as to each Euro Lender, its obligation to (a) make
Euro Revolving Loans to the Borrower pursuant to Section 2.01, in
an aggregate principal amount at any one time outstanding not to exceed the
amount set forth opposite such Domestic Lender’s name on Schedule 2.01
or in the Assignment and Assumption pursuant to which such Lender becomes a
party hereto, as applicable, as such amount may be adjusted from time to time
in accordance with this Agreement.

 

“Euro
Revolving Loan” has the meaning provided in Section 2.01(b).

 

“Euro
Revolving Note” has the meaning specified in Section 2.11(a)(ii).

 

“Eurocurrency
Base Rate” means, for any Interest Period with respect to a Eurocurrency
Rate Loan, the rate per annum equal to the British Bankers Association LIBOR
Rate (“BBA LIBOR”), as published by Reuters (or other commercially
available source providing quotations of BBA LIBOR as designated by the
Administrative Agent from time to time) at approximately 11:00 a.m.,
London time, 

 

10

 

two
Business Days prior to the commencement of such Interest Period, for Dollar
deposits (for delivery on the first day of such Interest Period) with a term
equivalent to such Interest Period.  If
such rate is not available at such time for any reason, then the “Eurocurrency
Base Rate” for such Interest Period shall be the rate per annum determined by
the Administrative Agent to be the rate at which deposits in Dollars for
delivery on the first day of such Interest Period in same day funds in the
approximate amount of the Eurocurrency Rate Loan being made, continued or
converted by Bank of America and with a term equivalent to such Interest Period
would be offered by Bank of America’s London Branch to major banks in the
London interbank eurocurrency market at their request at approximately 11:00 a.m.
(London time) two Business Days prior to the commencement of such Interest
Period.

 

“Eurocurrency
Rate” means, for any Interest Period with respect to any Eurocurrency Rate
Loan, a rate per annum determined by the Administrative Agent to be equal to
the quotient obtained by dividing (a) the Eurocurrency Base Rate for such
Eurocurrency Rate Loan for such Interest Period by (b) one minus
the Eurocurrency Reserve Percentage for such Eurocurrency Rate Loan for such
Interest Period.

 

“Eurocurrency
Rate Loan” means a Loan that bears interest at a rate based on the
Eurocurrency Rate.  Eurocurrency Rate
Loans may be denominated in Dollars or in the Alternative Currency.  All Loans denominated in the Alternative
Currency must be Eurocurrency Rate Loans.

 

“Eurocurrency
Reserve Percentage” means, for any day during any Interest Period, the
reserve percentage (expressed as a decimal, carried out to five decimal places)
in effect on such day, whether or not applicable to any Lender, under
regulations issued from time to time by the FRB for determining the maximum
reserve requirement (including any emergency, supplemental or other marginal
reserve requirement) with respect to Eurocurrency funding (currently referred
to as “Eurocurrency liabilities”).  The
Eurocurrency Rate for each outstanding Eurocurrency Rate Loan shall be adjusted
automatically as of the effective date of any change in the Eurocurrency
Reserve Percentage.

 

“Event
of Default” has the meaning specified in Section 9.01.

 

“Excluded Property” with respect to any Loan Party, including
any Person that becomes a Loan Party after the Closing Date as contemplated by Section 7.09,
(a) any owned real or personal property which is located outside of the
United States, (b) all leased real property, (c) any personal property
(including, without limitation, motor vehicles) in respect of which perfection
of a Lien is not either (i) governed by the Uniform Commercial Code or (ii) effected
by appropriate evidence of the Lien being filed in either the United States
Copyright Office or the United States Patent and Trademark Office, (d) the
Equity Interests of any direct Foreign Subsidiary of a Loan Party to the extent
not pledged as of the Closing Date or not required to be pledged to secure the
Obligations pursuant to Section 7.09, (e) any property which,
subject to the terms of Section 7.09(b), is subject to a Lien of
the type described in Section 8.02(a), Section 8.02(c) or
8.02(s) (but only to the extent and for so long as the grant of a
security interest in such property would violate the documentation governing
such Lien), (f) all Equity Interests in Spinneybeck Ireland, an Irish
corporation, (g) assets sold to a Person that is not a Loan Party to the
extent such sale is permitted hereunder, (h) assets owned by a Guarantor
after the release of the guarantee pursuant to Section 10.10, (i) licenses,
contracts and agreements which contain a valid and enforceable prohibition on
the creation of a security interest therein so long as such prohibition remains
in effect and is valid notwithstanding anti-assignment override provisions of
the Uniform Commercial Code, and (j) any other asset, if any, as to which
the Administrative Agent has determined in its reasonable discretion that the
cost of obtaining a security interest in such asset (including mortgage, stamp,
intangibles or other tax) are excessive in relation to the benefit of the
Lenders of the security afforded thereby.

 

“Excluded Taxes” means, with respect to the Administrative
Agent, any Lender, the L/C Issuer or any other recipient of any payment to be
made by or on account of any obligation of the Borrower hereunder, 

 

11

 

(a) taxes imposed on or measured by its overall net income
(however denominated), and franchise taxes imposed on it (in lieu of net income
taxes), by the jurisdiction (or any political subdivision thereof) 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, (b) any branch profits taxes imposed by the United States 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 11.13), any
withholding tax that is imposed on amounts payable to such Foreign Lender at
the time such Foreign Lender becomes a party hereto (or designates a new
Lending Office) or is attributable to such Foreign Lender’s failure or
inability (other than as a result of a Change in Law) to comply with Section 3.01(e),
except to the extent that such Foreign Lender (or its assignor, if any) was
entitled, at the time of designation of a new Lending Office (or assignment),
to receive additional amounts from the Borrower with respect to such
withholding tax pursuant to Section 3.01(a).

 

“Executive
Order” has the meaning assigned to such term in Section 6.24.

 

“Existing Credit Agreement” means that certain Credit Agreement
dated as of October 3, 2005 among the Borrower, the lenders party thereto,
UBS Securities LLC, as syndication agent, Bank of America, as administrative
agent, UBS AG, Stamford Branch, as an issuing bank, UBS Securites LLC and BAS,
as joint lead arrangers and joint bookrunners, and CitiBank, F.S.B.,
Manufacturers and Traders Trust Company and Harris N.A., as co-documentation
agents, as amended or modified from time to time.

 

“Existing
Letters of Credit” means the letters of credit described by date of
issuance, letter of credit number, undrawn amount, name of beneficiary and date
of expiry on Schedule 1.01(b).

 

“Federal
Funds Rate” means, for any day, the rate per annum equal to the weighted
average of the rates on overnight federal funds transactions with members of
the Federal Reserve System arranged by federal funds brokers on such day, as
published by the Federal Reserve Bank of New York on the Business Day next
succeeding such day; provided that (a) if such day is not a
Business Day, the Federal Funds Rate for such day shall be such rate on such
transactions on the next preceding Business Day as so published on the next
succeeding Business Day, and (b) if no such rate is so published on such
next succeeding Business Day, the Federal Funds Rate for such day shall be the
average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%)
charged to Bank of America on such day on such transactions as determined by
the Administrative Agent.

 

“Fee
Letter” means the letter agreement, dated May 24, 2007  among the Borrower, Bank of America and BAS.

 

“Fees” means the Commitment Fees,
the Letter of Credit Fees and any other fees payable by a Loan Party pursuant
to a fee agreement entered into with the Administrative Agent or any other
Lender.

 

“Financial Performance Covenant” has the
meaning specified in Section 9.01.

 

“First
Tier Foreign Subsidiary” means each Foreign Subsidiary that is owned
directly by any Loan Party.

 

“Foreign
Assets Control Regulations” has the meaning assigned to such term in Section 6.24.

 

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

 

12

 

“Foreign
Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.

 

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

 

“Fund” means any Person (other than a natural
person) that is (or will be) engaged in making, purchasing, holding or
otherwise investing in commercial loans and similar extensions of credit in the
ordinary course of its activities.

 

“GAAP”
means generally accepted accounting principles in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board and the
American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board, consistently
applied and as in effect from time to time.

 

“Governmental
Authority” means the government of the United States or any other nation,
or of 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 (including
any supra-national bodies such as the European Union or the European Central
Bank).

 

“GSA
Transaction” means the transactions and legal arrangements included in (a) the
Purchase and Assignment Agreement dated as of November 7, 1997 by and
between General Electric Capital Corporation (d/b/a Potomac Federal) and the
Borrower, as modified, supplemented and amended from time to time (with the
reasonable consent of the Administrative Agent if such modification, supplement
or amendment (i) changes the nature or character of the arrangement or (ii) contains
any material increase in the burden of the Borrower or its Subsidiaries under
the arrangement), and (b) any other agreement between the Borrower or its
Subsidiaries and other parties approved by the Administrative Agent (such
approval not to be unreasonably withheld) providing comparable arrangements
with the United States government.

 

“Guarantee”
means, as to any Person, (a) any obligation, contingent or otherwise, of
such Person guaranteeing or having the economic effect of guaranteeing any
Indebtedness or other obligation payable or performable by another Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any
obligation of such Person, direct or indirect, (i) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation, (ii) to purchase or lease property, securities or
services for the purpose of assuring the obligee in respect of such
Indebtedness or other obligation of the payment or performance of such
Indebtedness or other obligation, (iii) to maintain working capital,
equity capital or any other financial statement condition or liquidity or level
of income or cash flow of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation, or (iv) entered into
for the purpose of assuring in any other manner the obligee in respect of such
Indebtedness or other obligation of the payment or performance thereof or to
protect such obligee against loss in respect thereof (in whole or in part), or (b) any
Lien on any assets of such Person securing any Indebtedness or other obligation
of any other Person, whether or not such Indebtedness or other obligation is
assumed by such Person (or any right, contingent or otherwise, of any holder of
such Indebtedness to obtain any such Lien). 
The amount of any Guarantee shall be deemed to be an amount equal to the
stated or determinable amount of the related primary obligation, or portion
thereof, in respect of which such Guarantee is made or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof
as determined by the guaranteeing Person in good faith.  The term “Guarantee” as a verb has a
corresponding meaning.

 

13

 

“Guarantors”
means each Domestic Subsidiary of the Borrower identified as a “Guarantor” on
the signature pages hereto and each other Person that joins as a Guarantor
pursuant to Section 7.09, together with their successors and
permitted assigns.

 

“Guaranty”
means the Guaranty made by the Guarantors in favor of the Administrative Agent
and the Lenders pursuant to Article IV.

 

“Hazardous Materials” means (a) any
petroleum products or byproducts and all other hydrocarbons, coal ash, radon
gas, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls,
mold, radioactive materials, chlorofluorocarbons and all other ozone-depleting
substances and (b) any chemical, material, substance or waste of any kind
that is prohibited or regulated as hazardous by or pursuant to, or that could
give rise to liability under, any Environmental Law.

 

“Honor
Date” has the meaning set forth in Section 2.03(c).

 

“Incremental Term Loan” has the meaning
specified in Section 2.01(c).

 

“Indebtedness” of any person
means, without duplication, (a) all obligations of such person for
borrowed money, (b) all obligations of such person evidenced by bonds,
debentures, notes or similar instruments, (c) all obligations of such
person under conditional sale or other title retention agreements relating to
property or assets purchased by such person, (d) all obligations of such
person issued or assumed as the deferred purchase price of property or services
(excluding trade accounts payable and accrued obligations incurred in the
ordinary course of business), (e) all Indebtedness of others secured by
(or for which the holder of such Indebtedness has an existing right, contingent
or otherwise, to be secured by) any Lien on property owned or acquired by such
person, whether or not the obligations secured thereby have been assumed (it
being understood that, unless such person shall have assumed such obligations,
the amount of such Indebtedness shall be the lesser of (x) the fair market
value of the property securing such Indebtedness and (y) the stated
principal amount of such Indebtedness), (f) all Guarantees by such person
of Indebtedness of others, (g) all Capital Lease Obligations and Synthetic
Lease Obligations of such person, (h) all outstanding reimbursement
obligations of such person as an account party in respect of letters of credit,
(i) all obligations of such person in respect of bankers’ acceptances,
(j) all obligations of such person under or in respect of Swap Contracts
and (k) the liquidation value of all redeemable preferred Equity Interests
of such person, to the extent mandatorily redeemable in cash (other than as a
result of a change of control if the documentation regarding such preferred
Equity Interests provides for no payment unless, prior to any such payment, all
Loans and other Obligations under this Agreement and the other Loan Documents
are paid in full in cash or the Lenders consent to such payment) on or prior to
the Maturity Date (“Disqualified Preferred Stock”). For purposes of
determining the amount of Indebtedness of any person under clause (j) of
the preceding sentence, the amount of the obligations of such person in respect
of any Swap Contract at any time shall be zero prior to the time any
counterparty to such Swap Contract shall be entitled to terminate such Swap
Contract and, thereafter, shall be the maximum aggregate amount (giving effect
to any netting agreements) that such person would be required to pay if such
Swap Contract were terminated at such time. 
The Indebtedness of any person shall include the Indebtedness of any
partnership in which such person is a general partner only to the extent such
person is liable therefor by contract, as a matter of law or otherwise, and
shall not include any Indebtedness of such partnership that is expressly
non-recourse to such person.  For
clarification purposes, the liability of the Borrower or any Guarantor to make
any periodic payments to licensors in consideration for the license of Patents
and technical information under license agreements and any amount payable in
respect of a settlement of disputes with respect to such payments thereunder,
shall not constitute Indebtedness. 
Notwithstanding any other provision of this Agreement to the contrary, (i) the
term “Indebtedness” shall not be deemed to include (a) any earn-out
obligation until such obligation becomes a liability on the balance sheet of
the applicable person, (b) any deferred 

 

14

 

compensation
arrangements, (c) any non compete or consulting obligations incurred in
connection with Permitted Acquisitions, (d) “teaming agreements” pursuant
to which the Borrower or any Subsidiary agrees with another supplier of
services to provide services (including the sale of inventory) to a third
person and pursuant to such agreement shall be responsible to the third person
for the performance of the obligations of such other supplier, (e) warranty
claims, (f) product guarantees, guarantees (including performance
guarantees or bonds) by a person of obligations not constituting Indebtedness
of the Borrower or any Subsidiary, (g) obligations under joint development
agreements pursuant to which the Borrower or any Subsidiary agrees to develop a
product and (ii) the amount of Indebtedness for which recourse is limited either
to a specified amount or to an identified asset of such person shall be deemed
to be equal to such specified amount or the fair market value of such
identified asset, as the case may be, and (h) obligations under any GSA
Transaction.

 

“Indemnified Taxes” means Taxes other than
Excluded Taxes.

 

“Indemnitees” has the meaning specified in Section 11.04(b).

 

“Information” has the meaning specified in Section 11.07.

 

“Intellectual
Property” has the meaning assigned to such term in Section 6.07(d).

 

“Interest
Payment Date” means (a) as to any Eurocurrency Rate Loan, the last day
of each Interest Period applicable to such Loan and the Maturity Date; provided,
however, that if any Interest Period for a Eurocurrency Rate Loan
exceeds three months, the respective dates that fall every three months after
the beginning of such Interest Period shall also be Interest Payment Dates; and
(b) as to any Base Rate Loan (including a Swing Line Loan), the last
Business Day of each March, June, September and December and the
Maturity Date.

 

“Interest
Period” means, as to each Eurocurrency Rate Loan, the period commencing on
the date such Eurocurrency Rate Loan is disbursed or converted to or continued
as a Eurocurrency Rate Loan and ending on the date one, two, three or six months
thereafter, as selected by the Borrower in its Loan Notice, or nine or twelve
months thereafter, as requested by the Borrower and consented to by all of the
Lenders; provided that:

 

(i)            any Interest Period that would otherwise end on a
day that is not a Business Day shall be extended to the next succeeding
Business Day unless such Business Day falls in another calendar month, in which
case such Interest Period shall end on the next preceding Business Day;

 

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

 

(iii)          no Interest
Period shall extend beyond the Maturity Date.

 

“Interim
Financial Statements” has the meaning set forth in Section 5.01(c)(ii).

 

“Internal Revenue Code” means the Internal
Revenue Code of 1986.

 

“Involuntary
Disposition” means any loss of, damage to or destruction of, or any
condemnation or other taking for public use of, any property of any Loan Party
or any of its Subsidiaries.

 

15

 

“IRS” means the United States Internal
Revenue Service.

 

“ISP”
means, with respect to any Letter of Credit, the “International Standby
Practices 1998” published by the Institute of International Banking Law &
Practice, Inc. (or such later version thereof as may be in effect at the
time of issuance).

 

“Issuer
Documents” means with respect to any Letter of Credit, the Letter of Credit
Application, and any other document, agreement and instrument entered into by
the L/C Issuer and the Borrower (or any Subsidiary) or in favor of the L/C
Issuer and relating to any such Letter of Credit.

 

“Joinder
Agreement” means a joinder agreement substantially in the form of Exhibit 7.09
executed and delivered by a Domestic Subsidiary in accordance with the
provisions of Section 7.09.

 

“Knoll
Europe” means Knoll Europe B.V., a Netherlands company.

 

“Laws”
means, collectively, all international, foreign, federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law.

 

“L/C
Advance” means, with respect to each Domestic Lender, such Domestic Lender’s
funding of its participation in any L/C Borrowing in accordance with its
Applicable Percentage.

 

“L/C
Borrowing” means an extension of credit resulting from a drawing under any
Letter of Credit which has not been reimbursed on the date when made or
refinanced as a Borrowing of Domestic Revolving Loans.

 

“L/C
Credit Extension” means, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof, or the increase of the amount
thereof.

 

“L/C
Issuer” means Bank of America in its capacity as issuer of Letters of
Credit hereunder, or any successor issuer of Letters of Credit hereunder.

 

“L/C
Obligations” means, as at any date of determination, the aggregate amount
available to be drawn under all outstanding Letters of Credit plus the
aggregate of all Unreimbursed Amounts, including all L/C Borrowings.  For purposes of computing the amount
available to be drawn under any Letter of Credit, the amount of such Letter of
Credit shall be determined in accordance with Section 1.07.  For all
purposes of this Agreement, if on any date of determination a Letter of Credit
has expired by its terms but any amount may still be drawn thereunder by reason
of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be
deemed to be “outstanding” in the amount so remaining available to be drawn.

 

“Lenders”
means each of the Persons identified as a “Lender” on the signature pages hereto
and their successors and assigns and, as the context requires, includes the
Swing Line Lender.

 

“Lending
Office” means, as to any Lender, the office or offices of such Lender
described as such in such Lender’s Administrative Questionnaire, or such other
office or offices as a Lender may from time to time notify the Borrower and the
Administrative Agent.

 

16

 

“Letter
of Credit” means any standby letter of credit issued hereunder by the L/C
Issuer and shall include the Existing Letters of Credit.

 

“Letter
of Credit Application” means an application and agreement for the issuance
or amendment of a letter of credit in the form from time to time in use by the
L/C Issuer.

 

“Letter
of Credit Expiration Date” means the date which is thirty days prior to the
Maturity Date (or, if such date is not a Business Day, the next preceding
Business Day) unless prior to such time the Borrower provided Cash Collateral
to the Administrative Agent in an amount equal to 105% of the face amount of
all Letters of Credit expiring after the thirtieth day prior to the Maturity
Date, in which case the expiry date of such Letters of Credit shall be no later
than the first anniversary of the Maturity Date.

 

“Letter
of Credit Fee” has the meaning specified in Section 2.03(i).

 

“Letter
of Credit Sublimit” means an amount equal to the lesser of (a) the
Aggregate Revolving Commitments and (b) $50,000,000.  The Letter of Credit Sublimit is part of, and
not in addition to, the Aggregate Revolving Commitments.

 

“Lien”
means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge, or preference, priority or
other security interest or preferential arrangement in the nature of a security
interest of any kind or nature whatsoever (including any conditional sale or
other title retention agreement, any easement, right of way or other
encumbrance on title to real property, and any financing lease having
substantially the same economic effect as any of the foregoing).

 

“Loan”
means an extension of credit by a Lender to the Borrower under Article II
in the form of a Revolving Loan or Swing Line Loan.

 

“Loan
Documents” means this Agreement, each Note, each Issuer Document, each
Joinder Agreement, the Collateral Documents and the Fee Letter.

 

“Loan
Notice” means a notice of (a) a Borrowing of Loans, (b) a
conversion of Loans from one Type to the other, or (c) a continuation of
Eurocurrency Rate Loans, in each case pursuant to Section 2.02(b),
which, if in writing, shall be substantially in the form of Exhibit 2.02.

 

“Loan
Parties” means, collectively, the Borrower and each Guarantor.

 

“Mandatory
Cost” means, with respect to any period, the percentage rate per annum
determined in accordance with Schedule 1.01(a).

 

“Margin Stock” has the meaning
assigned to such term in Regulation U.

 

“Material
Adverse Effect” means (a) a material adverse change in, or a material
adverse effect on, the business, operations, assets, financial condition or
results of operations of the Borrower and the Subsidiaries, taken as a whole or
(b) a material adverse effect upon the legality, validity, binding effect
or enforceability against the Borrower or any other Loan Party under any Loan
Document to which it is or will be a party.

 

17

 

“Material Indebtedness” means
Indebtedness (other than the Loans and Letters of Credit) of any one or more of
the Borrower and the Subsidiaries in an aggregate principal amount exceeding
$20,000,000.

 

“Material
Subsidiary” means, at any time, any Subsidiary which at such time
shall be a “significant subsidiary” of the Borrower within the meaning of
Regulation S-X of the SEC as in effect on the date hereof; provided,
that the Borrower agrees that the Borrower and its Material Subsidiaries shall
at all times have assets during the term of this Agreement constituting at
least 90% of the Borrower’s consolidated total assets; provided, further,
that each Subsidiary which owns any Intellectual Property (other than
Intellectual Property with an aggregate fair market value of less than
$1,500,000) shall be deemed to be a Material Subsidiary hereunder.

 

“Maturity
Date” means June 29, 2013.

 

“Maximum
Permitted Revolving Outstandings” means FIVE HUNDRED MILLION DOLLARS
($500,000,000).

 

“Maximum
Rate” has the meaning specified in Section 11.09.

 

“Moody’s”
means Moody’s Investors Service, Inc. and any successor thereto.

 

“Mortgaged
Property” means any real property that is owned or leased by a Loan Party
and is subject to a Mortgage.

 

“Mortgages”
means the mortgages, deeds of trust or deeds to secure debt that purport to
grant to the Administrative Agent, for the benefit of the holders of the
Obligations, a security interest in the fee interest and/or leasehold interests
of any Loan Party in real property (other than Excluded Property).

 

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

 

“Note”
or “Notes” means the Domestic Revolving Notes, the Euro Revolving Notes
and/or the Swing Line Note, individually or collectively, as appropriate.

 

“Obligations”
means all advances to, and debts, liabilities, obligations, covenants and
duties of, any Loan Party arising under any Loan Document or otherwise with
respect to any Loan or Letter of Credit, whether direct or indirect (including
those acquired by assumption), absolute or contingent, due or to become due,
now existing or hereafter arising and including interest and fees that accrue
after the commencement by or against any Loan Party or any Affiliate thereof of
any proceeding under any Debtor Relief Laws naming such Person as the debtor in
such proceeding, regardless of whether such interest and fees are allowed
claims in such proceeding. The foregoing shall also include, unless the parties
thereto agree otherwise, (a) all obligations under any Swap Contract
between any Loan Party and any Lender or Affiliate of a Lender that is
permitted to be incurred pursuant to Section 8.01(d) and (b) all
obligations under any Treasury Management Agreement between any Loan Party and
any Lender or Affiliate of a Lender.

 

“Organization
Documents” means, (a) with respect to any corporation, the certificate
or articles of incorporation and the bylaws (or equivalent or comparable
constitutive documents with respect to any non-U.S. jurisdiction); (b) with
respect to any limited liability company, the certificate or articles of
formation or organization and operating agreement; and (c) with respect to
any partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation or
organization and any agreement, instrument, filing or notice with respect
thereto filed in 

 

18

 

connection
with its formation or organization with the applicable Governmental Authority
in the jurisdiction of its formation or organization and, if applicable, any
certificate or articles of formation or organization of such entity.

 

“Other
Taxes” means 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 under any other Loan Document or from the execution, delivery
or enforcement of, or otherwise with respect to, this Agreement or any other
Loan Document.

 

“Outstanding
Amount” means (i) with respect to any Loans on any date, the aggregate
outstanding principal amount thereof after giving effect to any borrowings and
prepayments or repayments of any Loans occurring on such date; and (ii) with
respect to any L/C Obligations on any date, the amount of such L/C Obligations
on such date after giving effect to any L/C Credit Extension occurring on such
date and any other changes in the aggregate amount of the L/C Obligations as of
such date, including as a result of any reimbursements by the Borrower of
Unreimbursed Amounts.

 

“Overnight Rate” means, for any day,
(a) with respect to any amount denominated in Dollars, the greater of
(i) the Federal Funds Rate and (ii) an overnight rate determined by
the Administrative Agent, the L/C Issuer, or the Swing Line Lender, as the case
may be, in accordance with banking industry rules on interbank
compensation, and (b) with respect to any amount denominated in the
Alternative Currency, the rate of interest per annum at which overnight
deposits in the Alternative Currency, in an amount approximately equal to the
amount with respect to which such rate is being determined, would be offered for
such day by a branch or Affiliate of Bank of America in the applicable offshore
interbank market for such currency to major banks in such interbank market.

 

“Participant” has the meaning specified in Section 11.06(d).

 

“Participating Member State” means each state
so described in any EMU Legislation.

 

“Patents” has the meaning assigned to such term in Security Agreement.

 

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

 

“Permitted Acquisition” has the
meaning specified in Section 8.04(h).

 

“Pennsylvania Property” means that
certain real property owned by the Borrower and located in the Borough of East
Greenville, Montgomery County, Pennsylvania.

 

“Permitted
Cure Securities” has the meaning specified in Article IX.

 

“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) or, in the case of a Foreign Subsidiary,
marketable direct obligations issued by or unconditionally guaranteed by the
government of the country of such Foreign Subsidiary or backed by the full
faith and credit of the government of the country of such Foreign Subsidiary,
in each case maturing within one year from the date of acquisition thereof;

 

19

 

 

(b)           investments in
commercial paper maturing within one year from the date of acquisition thereof
and having, at such date of acquisition, one of the two highest credit ratings
obtainable from S&P or from Moody’s or carrying an equivalent rating by a
nationally recognized rating agency, if both of the two named rating agencies
cease publishing ratings of investments;

 

(c)           investments in
certificates of deposit, Eurocurrency deposits, overnight bank deposits or
banker’s acceptances, demand deposits and time deposits maturing within one
year from the date of acquisition thereof issued or guaranteed by or placed
with, and money market deposit accounts issued or offered by, the
Administrative Agent or any domestic office of any Lender or any other
commercial bank organized under the laws of the United States of America or any
State thereof that has a combined capital and surplus and undivided profits of
not less than $500,000,000 or issued by or offered by a bank organized under
the laws of any foreign country recognized by the United States the long-term
debt of which is rated at least “A” or the equivalent by S&P or “A” or the
equivalent thereof by Moody’s having at the date of acquisition thereof
combined capital and surplus of not less than $500,000,000 or the foreign
currency equivalent thereof;

 

(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 of clause (c) above;

 

(e)           investments in
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  maturing within
one year from the date of acquisition thereof and having, at such date of
acquisition, one of the two highest credit ratings obtainable from S&P or
from Moody’s;

 

(f)            investments in “money
market funds” within the meaning of Rule 2a-7 of the Investment Company
Act of 1940, as amended, substantially all of whose assets are invested in
investments of the type described in clauses (a) through (e) above;

 

(g)           other
short-term investments utilized by Foreign Subsidiaries in accordance with
normal investment practices for cash management in investments of a type
analogous to the foregoing; and

 

(h)           solely with
respect to any Foreign Subsidiary, non-Dollar denominated (i) certificates
of deposit of, bankers acceptances of, or time deposits with, any commercial
bank which is organized and existing under the laws of the country in which
such Foreign Subsidiary maintains its chief executive office and principal
place of business provided such country is a member of the Organization for
Economic Cooperation and Development, and whose short-term commercial paper rating
from S&P is at least A-1 or the equivalent thereof or from Moody’s is at
least P-1 or the equivalent thereof (any such bank being an “Approved Foreign Bank”) and
maturing within twelve (12) months of the date of acquisition and (ii) equivalents
of demand deposit accounts which are maintained with an Approved Foreign Bank.

 

“Permitted
Liens” means, at any time, Liens in respect of property of any Loan Party
or any of its Subsidiaries permitted to exist at such time pursuant to the
terms of Section 8.02.

 

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

 

20

 

“Plan” means any employee pension benefit plan (other than a Multiemployer
Plan) subject to the provisions of Title IV of ERISA or Section 412
of the Internal Revenue 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.

 

“Platform”
has the meaning specified in Section 7.04.

 

“Pro Forma Basis” means, for purposes of calculating the
Financial Performance Covenants (including for purposes of determining the
Applicable Rate), that any Disposition, Involuntary Disposition,
Acquisition or Restricted Payment shall be deemed to have occurred as of the
first day of the most recent four fiscal quarter period preceding the date of
such transaction for which the Borrower was required to deliver financial
statements pursuant to Section 7.04(a) or (b).  In connection with the foregoing, (a) with
respect to any Disposition or Involuntary Disposition, income statement and
cash flow statement items (whether positive or negative) attributable to the
property disposed of shall be excluded to the extent relating to any period
occurring prior to the date of such transaction and (b) with respect to
any Acquisition, income statement items attributable to the Person or property
acquired shall be included to the extent relating to any period applicable in
such calculations to the extent (A) such items are not otherwise included
in such income statement items for the Borrower and its Subsidiaries in
accordance with GAAP or in accordance with any defined terms set forth in Section 1.01
and (B) such items are supported by financial statements or other
information reasonably satisfactory to the Administrative Agent and (ii) any
Indebtedness incurred or assumed by the Borrower or any Subsidiary (including
the Person or property acquired) in connection with such transaction (A) shall
be deemed to have been incurred as of the first day of the applicable period
and (B) if such Indebtedness has a floating or formula rate, shall have an
implied rate of interest for the applicable period for purposes of this
definition determined by utilizing the rate which is or would be in effect with
respect to such Indebtedness as at the relevant date of determination.  In connection with any Permitted Acquisition,
the Borrower shall be permitted to assume cost savings certified by a
Responsible Officer of the Borrower and expected to be achieved within a
twelve-month period following the closing of such Permitted Acquisition if the
consolidated balance sheet of such acquired person and its consolidated
Subsidiaries as at the end of the fiscal period preceding the acquisition of
such person and the related consolidated statements of income and stockholders’
equity and of cash flows for the period in respect of which Consolidated EBITDA
is to be calculated (x) have been previously provided to the
Administrative Agent and (y) either (1) have been reported on without
a qualification arising out of the scope of the audit by independent certified
public accountants of nationally recognized standing or (2) have been
found acceptable by the Administrative Agent. 
For purposes of determining compliance with the covenants set forth in Section 8.11
(and the computations made for purposes of determining the Applicable Rate),
all calculations shall be made on a Pro Forma Basis after giving effect to the
Transactions, (subject, in the case of the Transactions, to the limitations
contained in clause (a)(iv) of the definition of Consolidated EBITDA).

 

“Pro Forma Compliance” means, at any date of determination, that the Borrower shall be in pro
forma compliance with the covenants set forth in Section 8.11 as of
the date of such determination or the last day of the most recent fiscal quarter-end,
as the case may be (computed on the basis of (a) balance sheet amounts as
of such date and (b) income statement amounts for the most recently
completed period of four consecutive fiscal quarters for which financial
statements shall have been delivered to the Administrative Agent and calculated
on a Pro Forma Basis in respect of the event giving rise to such
determination).

 

“Pro Forma Compliance Certificate” means a certificate of a
Responsible Officer of the Borrower containing reasonably detailed calculations
of the Financial Performance Covenants as of the most recent fiscal quarter end
for which the Borrower was required to deliver financial statements pursuant to
Section 7.04(a) or (b) after giving effect to the
applicable transaction on a Pro Forma Basis.

 

21

 

“Public Lender” has the meaning specified in Section 7.04.

 

“Register” has the meaning specified in Section 11.06(c).

 

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

 

“Release” means any release, spill, emission, leaking, dumping, injection,
pouring, deposit, disposal, discharge, dispersal, leaching or migration into or
through the environment or within, under, from or upon any building, structure,
facility or fixture.

 

“Release
of Collateral Event” means any time that (a) no Event of Default has
occurred and is continuing and (b) the Borrower simultaneously maintains
the Requisite Ratings.

 

“Request
for Credit Extension” means (a) with respect to a Borrowing,
conversion or continuation of Loans, a Loan Notice, (b) with respect to an
L/C Credit Extension, a Letter of Credit Application and (c) with respect
to a Swing Line Loan, a Swing Line Loan Notice.

 

“Required
Domestic Lenders” means, at any time, Domestic Lenders holding in the
aggregate more than 50% of (a) the unfunded Aggregate Domestic Revolving
Commitments and the outstanding Domestic Revolving Loans, L/C Obligations and
participations therein or (b) if the Aggregate Domestic Revolving
Commitments have been terminated, the outstanding Domestic Revolving Loans, L/C
Obligations and participations therein. 
The unfunded Domestic Revolving Commitments of, and the outstanding
Domestic Revolving Loans held or deemed held by, any Defaulting Lender shall be
excluded for purposes of making a determination of Required Domestic Lenders.

 

“Required
Euro Lenders” means, at any time, Euro Lenders holding in the aggregate
more than 50% of (a) the unfunded Aggregate Euro Revolving Commitments and
the outstanding Euro Revolving Loans or (b) if the Aggregate Euro
Revolving Commitments have been terminated, the outstanding Euro Revolving
Loans.  The unfunded Euro Revolving
Commitments of, and the outstanding Euro Revolving Loans held or deemed held
by, any Defaulting Lender shall be excluded for purposes of making a
determination of Required Euro Lenders.

 

“Required
Lenders” means, at any time, Lenders holding in the aggregate more than 50%
of (a) the unfunded Commitments and the outstanding Loans, L/C Obligations
and participations therein or (b) if the Commitments have been terminated,
the outstanding Loans, L/C Obligations and participations therein.  The unfunded Commitments of, and the
outstanding Loans held or deemed held by, any Defaulting Lender shall be
excluded for purposes of making a determination of Required Lenders.

 

“Requisite
Ratings” means (a) a corporate rating on the Borrower’s senior
unsecured (non-credit enhanced) debt of at least BBB- from S&P or an
equivalent rating from S&P in the event S&P changes its rating system
and (b) a corporate family rating on the Borrower senior unsecured
(non-credit enhanced) debt of at least Baa3 from Moody’s or an equivalent
rating from Moody’s in the event Moody’s changes its rating system.

 

“Responsible
Officer” means the chief executive officer, president or chief financial
officer of a Loan Party or the Manager, Credit and Collections, of the
Borrower.  Any document delivered
hereunder that is signed by a Responsible Officer of a Loan Party shall be
conclusively presumed to have been authorized by all necessary corporate,
partnership and/or other action on the part of such Loan Party and such
Responsible Officer shall be conclusively presumed to have acted on behalf of
such Loan Party.

 

22

 

“Restricted
Indebtedness” means Indebtedness of the Borrower or any Subsidiary, the
payment, prepayment, repurchase or defeasance of which is restricted under Section 8.09(b).

 

“Restricted Payment” means any dividend or other distribution (whether in cash, securities
or other property, but excluding any payment in Equity Interests (other than
Disqualified Preferred Stock) in the Borrower) with respect to any Equity
Interests in the Borrower or any Subsidiary, or any payment (whether in cash,
securities or other property, other than a payment in Equity Interests (other
than Disqualified Preferred Stock) in the Borrower), including any sinking fund
or similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any Equity Interests in the
Borrower or any Subsidiary or any option, warrant or other right to acquire any
such Equity Interests in the Borrower or any Subsidiary.

 

“Revaluation
Date” means (a) with respect to any Loan, each of the following:  (i) each date of a Borrowing of a
Eurocurrency Rate Loan denominated in the Alternative Currency, (ii) each
date of a continuation of a Eurocurrency Rate Loan denominated in the
Alternative Currency pursuant to Section 2.02, and (iii) such
additional dates as the Administrative Agent shall determine or the Required
Lenders shall require; and (b) with respect to any Letter of Credit, each
of the following:  (i) each date of
issuance of a Letter of Credit denominated in the Alternative Currency,
(ii) each date of an amendment of any such Letter of Credit having the
effect of increasing the amount thereof (solely with respect to the increased
amount), (iii) each date of any payment by the L/C Issuer under any Letter
of Credit denominated in the Alternative Currency, and (v) such additional
dates as the Administrative Agent or the L/C Issuer shall determine.

 

“Revolving
Commitment” means the Domestic Revolving Commitments and/or the Euro
Revolving Commitments, as appropriate.

 

“Revolving
Loan” means the Domestic Revolving Loan and/or the Euro Revolving Loan, as
appropriate.

 

“S&P”
means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc. and any successor thereto.

 

“Same
Day Funds” means (a) with respect to disbursements and payments in
Dollars, immediately available funds, and (b) with respect to
disbursements and payments in the Alternative Currency, same day or other funds
as may be determined by the Administrative Agent or the L/C Issuer, as the case
may be, to be customary in the place of disbursement or payment for the
settlement of international banking transactions in the Alternative Currency.

 

“SEC”
means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

 

“Security
Agreement” means the pledge and security agreement dated as of the Closing
Date executed in favor of the Administrative Agent, for the benefit of the
holders of the Obligations, by each of the Loan Parties, as amended or modified
from time to time in accordance with the terms hereof.

 

“Spot
Rate” for a currency means the rate determined by the Administrative Agent
or the L/C Issuer, as applicable, to be the rate quoted by the Person acting in
such capacity as the spot rate for the purchase by such Person of such currency
with another currency through its principal foreign exchange trading office at
approximately 11:00 a.m. on the date two Business Days prior to the date
as of which the foreign exchange computation is made; provided that the
Administrative Agent or the L/C Issuer may 

 

23

 

obtain
such spot rate from another financial institution designated by the
Administrative Agent or the L/C Issuer if the Person acting in such capacity
does not have as of the date of determination a spot buying rate for any such
currency; and provided further that the L/C Issuer may use such spot rate quoted
on the date as of which the foreign exchange computation is made in the case of
any Letter of Credit denominated in the Alternative Currency.

 

“Subsidiary”
of a Person means a corporation, partnership, joint venture, limited liability
company or other business entity of which a majority of the shares of Voting
Stock is at the time beneficially owned, or the management of which is
otherwise controlled, directly, or indirectly through one or more
intermediaries, or both, by such Person. 
Unless otherwise specified, all references herein to a “Subsidiary” or
to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Borrower.

 

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

 

“Swing
Line Lender” means Bank of America in its capacity as provider of Swing
Line Loans, or any successor swing line lender hereunder.

 

“Swing Line Loan” has the meaning specified
in Section 2.04(a).

 

“Swing
Line Loan Notice” means a notice of a Borrowing of Swing Line Loans
pursuant to Section 2.04(b), which, if in writing, shall be
substantially in the form of Exhibit 2.04.

 

“Swing
Line Note” has the meaning specified in Section 2.11(a)(iii).

 

“Swing
Line Sublimit” means an amount equal to the lesser of (a) $10,000,000  and (b) the Aggregate Revolving Commitments.  The Swing Line Sublimit is part of, and not
in addition to, the Aggregate Revolving Commitments.

 

“Synthetic
Lease” means, as to any Person, any lease (including leases that may be
terminated by the lessee at any time) of any property (whether real, personal
or mixed) (a) that is accounted for as an operating lease under GAAP and (b) in
respect of which the lessee retains or obtains ownership of the property so
leased for U.S. federal income tax purposes, other than any such lease under
which such person is the lessor.

 

“Synthetic
Lease Obligations” means, as to any Person, an amount equal to the sum of (a) the
obligations of such Person to pay rent or other amounts under any Synthetic
Lease which are attributable to principal and, without duplication, (b) the
amount of any purchase price payment under any Synthetic Lease assuming the
lessee exercises the option to purchase the leased property at the end of the
lease term.

 

24

 

“Synthetic Purchase Agreement” means any swap, derivative or other agreement or combination of
agreements pursuant to which the Borrower or any Subsidiary is or may become
obligated to make (a) any payment in connection with a purchase by any
third party from a person other than the Borrower or any Subsidiary of any
Equity Interest or Restricted Indebtedness of the Borrower or a Subsidiary or (b) any
payment (other than on account of a permitted purchase by it of any Equity
Interest or Restricted Indebtedness) the amount of which is determined by
reference to the price or value at any time of any Equity Interest or
Restricted Indebtedness of the Borrower or a Subsidiary; provided, that
no phantom stock or similar plan providing for payments only to current or
former directors, officers or employees of the Borrower or the Subsidiaries (or
to their heirs or estates) shall be deemed to be a Synthetic Purchase
Agreement.

 

“TARGET
Day” means any day on which the Trans-European Automated Real-time Gross
Settlement Express Transfer (TARGET) payment system (or, if such payment system
ceases to be operative, such other payment system (if any) determined by
the Administrative Agent to be a suitable replacement) is open for the
settlement of payments in Euro.

 

“Taxes”
means all present or future taxes, levies, imposts, duties, deductions, withholdings,
assessments, fees or other charges imposed by any Governmental Authority,
including any interest, additions to tax or penalties applicable thereto.

 

“Threshold Amount” means $20,000,000.

 

“Total
Domestic Revolving Outstandings” means the aggregate Outstanding Amount of
all Domestic Revolving Loans, all Swing Line Loans and all L/C Obligations.

 

“Total
Euro Revolving Outstandings” means the aggregate Outstanding Amount of all
Euro Revolving Loans.

 

“Total
Revolving Outstandings” means the aggregate Outstanding Amount of all
Domestic Revolving Loans, all Euro Revolving Loans, all Swing Line Loans and
all L/C Obligations.

 

“Trademarks” has the meaning assigned to such term in the Security Agreement.

 

“Trading
With the Enemy Act” has the meaning assigned to such term in Section 6.24.

 

“Transactions” means, collectively, (a) the execution, delivery and performance
by the Loan Parties of the Loan Documents to which they are a party and, in the
case of the Borrower, the making of the initial Borrowings hereunder, (b) the
repayment of all amounts outstanding or due under, and the termination of, the
Existing Credit Agreement and (c) the payment of related fees and
expenses.

 

“Treasury
Management Agreement” means any agreement governing the provision of treasury
or cash management services, including deposit accounts, overnight draft,
credit or debit card, funds transfer, automated clearinghouse, zero balance
accounts, returned check concentration, controlled disbursement, lockbox,
account reconciliation and reporting and trade finance services and other cash
management services.

 

“Type”
means, with respect to any Loan, its character as a Base Rate Loan or a
Eurocurrency Rate Loan.

 

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

 

25

 

“Unreimbursed Amount” has the meaning
specified in Section 2.03(c)(i).

 

“Voting
Stock” means, with respect to any Person, Equity Interests issued by such
Person the holders of which are ordinarily, in the absence of contingencies,
entitled to vote for the election of directors (or persons performing similar
functions) of such Person, even though the right so to vote has been suspended
by the happening of such a contingency.

 

“wholly owned Subsidiary” of any person shall mean a subsidiary of such person of which
securities (except for directors’ qualifying shares and other de minimis
ownership interests required to be owned under foreign law by local residents)
or other ownership interests representing 100% of the Equity Interests are, at
the time any determination is being made, 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.

 

1.02         Other Interpretive
Provisions.

 

With
reference to this Agreement and each other Loan Document, unless otherwise
specified herein or in such other Loan Document:

 

(a)           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, (i) any
definition of or reference to any agreement, instrument or other document
(including any Organization Document) 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 or in any other Loan
Document), (ii) any reference herein to any Person shall be construed to
include such Person’s successors and assigns, (iii) the words “herein,”
“hereof” and “hereunder,” and words of similar import when used
in any Loan Document, shall be construed to refer to such Loan Document in its
entirety and not to any particular provision thereof, (iv) all references
in a Loan Document to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
the Loan Document in which such references appear, (v) any reference to
any law shall include all statutory and regulatory provisions consolidating,
amending, replacing or interpreting such law and any reference to any law or
regulation shall, unless otherwise specified, refer to such law or regulation
as amended, modified or supplemented from time to time, and (vi) the words
“asset” and “property” shall be construed to have the same
meaning and effect and to refer to any and all real and personal property and
tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

 

(b)           In the computation of periods of time from a
specified date to a later specified date, the word “from” means “from
and including;” the words “to” and “until” each mean “to
but excluding;” and the word “through” means “to and including.”

 

26

 

(c)           Section headings herein and in the other Loan
Documents are included for convenience of reference only and shall not affect
the interpretation of this Agreement or any other Loan Document.

 

1.03         Accounting Terms.

 

(a)           Generally.  Except as otherwise specifically prescribed
herein, all accounting terms not specifically or completely defined herein
shall be construed in conformity with, and all financial data (including
financial ratios and other financial calculations) required to be submitted
pursuant to this Agreement shall be prepared in conformity with, GAAP applied
on a consistent basis, as in effect from time to time, applied in a manner
consistent with that used in preparing the Audited Financial Statements;
provided, however, that calculations of Synthetic Lease Obligations shall be
made by the Borrower in accordance with accepted financial practice and
consistent with the terms of such Synthetic Lease Obligations and in the event
any accounting term is not defined by GAAP, it shall have the definition
mutually agreed upon by the Borrower and the Administrative Agent.

 

(b)           Changes in GAAP.  If at any time any change in GAAP would
affect the computation of any financial ratio or requirement set forth in any
Loan Document, and either the Borrower or the Required Lenders shall so
request, the Administrative Agent, the Lenders and the Borrower shall negotiate
in good faith to amend such ratio or requirement to preserve the original
intent thereof in light of such change in GAAP (subject to the approval of the
Required Lenders); provided  that, until so amended, (i) such
ratio or requirement shall continue to be computed in accordance with GAAP
prior to such change therein and (ii) the Borrower shall provide to the
Administrative Agent and the Lenders financial statements and other documents
required under this Agreement or as reasonably requested hereunder setting
forth a reconciliation between calculations of such ratio or requirement made
before and after giving effect to such change in GAAP.

 

(c)           Calculations.  Notwithstanding the above, the parties hereto
acknowledge and agree that all calculations of the Financial Perfomance
Covenants (including for purposes of determining the Applicable Rate) shall be
made on a Pro Forma Basis.

 

1.04         Rounding.

 

Any
financial ratios required to be maintained by the Borrower pursuant to this
Agreement shall be calculated by dividing the appropriate component by the
other component, carrying the result to one place more than the number of
places by which such ratio is expressed herein and rounding the result up or
down to the nearest number (with a rounding-up if there is no nearest number).

 

1.05         Exchange Rates; Currency
Equivalents.

 

(a)           The Administrative Agent or the L/C Issuer, as
applicable, shall determine the Spot Rates as of each Revaluation Date to be
used for calculating Dollar Equivalent amounts of Credit Extensions and
Outstanding Amounts denominated the Alternative Currency.  Such Spot Rates shall become effective as of
such Revaluation Date and shall be the Spot Rates employed in converting any
amounts between the applicable currencies until the next Revaluation Date to
occur.  Except for purposes of financial
statements delivered by Loan Parties hereunder or calculating financial
covenants hereunder or except as otherwise provided herein, the applicable
amount of any currency (other than Dollars) for purposes of the Loan Documents
shall be such Dollar Equivalent amount as so determined by the Administrative
Agent or the L/C Issuer, as applicable. 
The maximum amount of Indebtedness, investments and other threshold
amounts that the Borrower and the Subsidiaries may incur under Article VIII
shall not be deemed to be exceeded, with respect to any outstanding
Indebtedness, investments and 

 

27

 

other
threshold amounts solely as a result of fluctuations in the exchange rate of
currencies.  When calculating capacity
for the incurrence of additional Indebtedness, investments and other threshold
amounts by the Borrower and any Subsidiary, the exchange rate of currencies
shall be measured as of the date of such calculation.

 

(b)           Wherever in this Agreement in connection with a
Borrowing, conversion, continuation or prepayment of a Eurocurrency Rate Loan
or the issuance, amendment or extension of a Letter of Credit, an amount, such
as a required minimum or multiple amount, is expressed in Dollars, but such
Borrowing, Eurocurrency Rate Loan or Letter of Credit is denominated in the
Alternative Currency, such amount shall be the Alternative Currency Equivalent
of such Dollar amount (rounded to the nearest unit of such Alternative
Currency, with 0.5 of a unit being rounded upward), as determined by the
Administrative Agent or the L/C Issuer, as the case may be.

 

1.06         Times of Day.

 

Unless
otherwise specified, all references herein to times of day shall be references
to Eastern time (daylight or standard, as applicable).

 

1.07         Letter of Credit Amounts.

 

Unless
otherwise specified herein, the amount of a Letter of Credit at any time shall
be deemed to be the stated amount of such Letter of Credit in effect at such
time; provided, however, that with respect to any Letter of
Credit that, by its terms or the terms of any Issuer Document related thereto,
provides for one or more automatic increases in the stated amount thereof, the
amount of such Letter of Credit shall be deemed to be the maximum stated amount
of such Letter of Credit after giving effect to all such increases, whether or
not such maximum stated amount is in effect at such time.

 

ARTICLE II

 

THE COMMITMENTS AND CREDIT
EXTENSIONS

 

2.01         Loans.

 

(a)           Domestic Revolving Loans. Subject to
the terms and conditions set forth herein, each Domestic Lender severally
agrees to make loans (each such loan, a “Domestic Revolving Loan”) to
the Borrower in Dollars from time to time on any Business Day during the
Availability Period in an aggregate amount not to exceed at any time
outstanding the amount of such Domestic Lender’s Domestic Revolving Commitment;
provided, however, that after giving effect to any Borrowing of
Domestic Revolving Loans, (i) the Total Domestic Revolving Outstandings
shall not exceed FIVE HUNDRED MILLION DOLLARS ($500,000,000) (such aggregate
amount, as it may be increased or decreased as provided herein, the “Aggregate
Domestic Revolving Commitments”), (ii) the Total Revolving
Outstandings shall not exceed the Maximum Permitted Revolving Outstandings and (iii) the
aggregate Outstanding Amount of the Domestic Revolving Loans of any Domestic
Lender, plus such Domestic Lender’s Applicable Percentage of the
Outstanding Amount of all L/C Obligations plus such Domestic Lender’s
Applicable Percentage of the Outstanding Amount of all Swing Line Loans shall
not exceed such Domestic Lender’s Domestic Revolving Commitment; provided
further that the availability of the Aggregate Revolving Commitments at
any time for the making of Loans and the issuance of Letters of Credit shall be
reduced by the amount of the Alternative Currency Reserve.  Within the limits of each Domestic Lender’s
Domestic Revolving Commitment, and subject to the other terms and conditions
hereof, the Borrower may borrow under this Section 2.01(a), prepay
under Section 2.05, and reborrow under this Section 2.01(a).  Domestic Revolving Loans may be Base Rate
Loans or Eurocurrency Rate 

 

28

 

Loans,
or a combination thereof, as further provided herein; provided, however, all
Borrowings made on the Closing Date shall be made as Base Rate Loans.

 

(b)           Euro Revolving Loans. Subject to the terms and
conditions set forth herein, each Euro Lender severally agrees to make loans
(each such loan, a “Euro Revolving Loan”) to the Borrower in the Alternative
Currency from time to time on any Business Day during the Availability Period
in an aggregate amount not to exceed at any time outstanding the amount of such
Euro Lender’s Euro Revolving Commitment; provided, however, that
after giving effect to any Borrowing of Euro Revolving Loans, (i) the
Total Euro Revolving Outstandings shall not exceed ONE HUNDRED FIFTY MILLION
DOLLARS ($150,000,000) (such aggregate amount, as it may be increased or
decreased as provided herein, the “Aggregate Euro Revolving Commitments”),
(ii) the Total Revolving Outstandings shall not exceed the Maximum
Permitted Revolving Outstandings and (iii) the aggregate Outstanding
Amount of the Euro Revolving Loans of any Euro Lender shall not exceed such
Euro Lender’s Euro Revolving Commitment; provided  further that
the availability of the Aggregate Revolving Commitments at any time for the
making of Loans and the issuance of Letters of Credit shall be reduced by the
amount of the Alternative Currency Reserve. 
Within the limits of each Euro Lender’s Euro Revolving Commitment, and
subject to the other terms and conditions hereof, the Borrower may borrow under
this Section 2.01(b), prepay under Section 2.05, and
reborrow under this Section 2.01(b).  Euro Revolving Loans may be Eurocurrency Rate
Loans as further provided herein.

 

(c)           Increase in Aggregate Commitments.  The Borrower may, at any time and from time
to time, upon prior written notice by the Borrower to the Administrative Agent
increase the Aggregate Commitments (but not the Letter of Credit Sublimit) by a
maximum aggregate amount of up to TWO HUNDRED MILLION DOLLARS ($200,000,000)
with (i) additional Domestic Revolving Commitments from any existing
Domestic Lender with a Domestic Revolving Commitment or new Domestic Revolving Commitments
from any other Person selected by the Borrower and reasonably acceptable to the
Administrative Agent and the L/C Issuer or (ii) a term loan (the “Incremental
Term Loan”) from any existing Lender or from any other Person selected by
the Borrower and reasonably acceptable to the Administrative Agent as follows:

 

(i)            Increase in Aggregate Domestic Revolving
Commitments.  The
Borrower may, at any time, upon written notice to the Administrative Agent,
increase the Aggregate Domestic Revolving Commitments; provided that:

 

(A)          any such increase shall be
in a minimum principal amount of $10,000,000 and in integral multiples of
$1,000,000 in excess thereof;

 

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

 

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

 

(D)          (1) any new Lender
shall join this Agreement by executing such joinder documents required by the
Administrative Agent and/or (2) any existing Lender electing to increase
its Domestic Revolving Commitment shall have executed a commitment agreement
satisfactory to the Administrative Agent; and

 

(E)           as a condition precedent to
such increase, the Borrower shall deliver to the Administrative Agent a
certificate of each Loan Party dated as of the date of such

 

29

 

 

increase
(in sufficient copies for each Lender) signed by a Responsible Officer of such
Loan Party (1) certifying and attaching the resolutions adopted by such
Loan Party approving or consenting to such increase, and (2) in the case
of the Borrower, certifying that, before and after giving effect to such
increase, (x) the representations and warranties contained in Article VI
and the other Loan Documents are true and correct in all material respects on
and as of the date of such increase, except to the extent that such
representations and warranties specifically refer to an earlier date, in which
case they are true and correct in all material respects as of such earlier
date, and except that for purposes of this Section 2.01(c)(i), the
representations and warranties contained in subsections (a) and (b) of
Section 6.05 shall be deemed to refer to the most recent statements
furnished pursuant to clauses (a) and (b), respectively, of Section 7.04,
and (y) no Default or Event of Default exists.

 

(ii)           Institution of Incremental Term Loan.  The Borrower may, at any time, upon written
notice to the Administrative Agent, institute the Incremental Term Loan; provided
that:

 

(A)          any such institution of the
Incremental Term Loan shall be in a minimum principal amount of $10,000,000 and
in integral multiples of $1,000,000 in excess thereof;

 

(B)           no Default or Event of
Default shall exist and be continuing at the time of any such institution of
the Incremental Term Loan;

 

(C)           no existing Lender shall be
under any obligation to provide a commitment under the Incremental Term Loan
and any such decision whether to provide a commitment under the Incremental
Term Loan shall be in such Lender’s sole and absolute discretion;

 

(D)          (1) any new Lender
shall join this Agreement by executing such joinder documents required by the
Administrative Agent and/or (2) any existing Lender electing to provide a
commitment under the Incremental Term Loan shall have executed a commitment
agreement satisfactory to the Administrative Agent;

 

(E)           as a condition precedent to
such increase, the Borrower shall deliver to the Administrative Agent a
certificate of each Loan Party dated as of the date of such increase (in
sufficient copies for each Lender) signed by a Responsible Officer of such Loan
Party (1) certifying and attaching the resolutions adopted by such Loan
Party approving or consenting to such increase, and (2) in the case of the
Borrower, certifying that, before and after giving effect to such increase, (x) the
representations and warranties contained in Article VI and the
other Loan Documents are true and correct in all material respects on and as of
the date of such increase, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they are true
and correct in all material respects as of such earlier date, and except that
for purposes of this Section 2.01(c)(i), the representations and
warranties contained in subsections (a) and (b) of Section 6.05
shall be deemed to refer to the most recent statements furnished pursuant to
clauses (a) and (b), respectively, of Section 7.04, and (y) no
Default or Event of Default exists; and

 

(F)           as a condition precedent to
such institution of the Incremental Term Loan, an amendment to this Agreement
as may be necessary to incorporate specific 

 

30

 

provisions
applicable to the Incremental Term Loan herein must be approved by the Required
Lenders, such approval not to be unreasonably withheld.

 

The
Borrower shall prepay any Loans owing by it and outstanding on the date of any
such increase in the Aggregate Domestic Revolving Commitments or any such
institution of the Incremental Term Loan (and pay any additional amounts
required pursuant to Section 3.05) to the extent necessary to keep the
outstanding Loans ratable with any revised Commitments arising from any
nonratable increase in the Commitments under this Section.

 

2.02         Borrowings, Conversions and
Continuations of Loans.

 

(a)           (i)            Domestic Revolving Loans.  With respect to Domestic Revolving Loans,
each Borrowing, each conversion of Loans from one Type to the other, and each
continuation of Eurocurrency Rate Loans shall be made upon the Borrower’s
irrevocable notice to the Administrative Agent, which may be given by
telephone.  Each such notice must be
received by the Administrative Agent not later than 11:00 a.m. (A) three
Business Days prior to the requested date of any Borrowing of, conversion to or
continuation of, Eurocurrency Rate Loans or of any conversion of Eurocurrency
Rate Loans to Base Rate Loans and (B) on the requested date of any
Borrowing of Base Rate Loans.

 

(ii)           Euro Revolving Loans.  With respect to Euro Revolving Loans, each
Borrowing and each continuation of Eurocurrency Rate Loans shall be made upon
the Borrower’s irrevocable notice to the Administrative Agent, which may be
given by telephone.  Each such notice
must be received by the Administrative Agent not later than 11:00 a.m.
four Business Days  prior to the
requested date of any Borrowing of Eurocurrency rate Loans denominated in the
Alternative Currency.

 

(b)           Each telephonic notice by the Borrower pursuant to
this Section 2.02 must be confirmed promptly by delivery to the
Administrative Agent of a written Loan Notice, appropriately completed and
signed by a Responsible Officer of the Borrower.  Each Borrowing of, conversion to or
continuation of Eurocurrency Rate Loans shall be in a principal amount of
$2,000,000 or a whole multiple of $1,000,000 in excess thereof.  Except as provided in Sections 2.03(c) and
2.04(c), each Borrowing of or conversion to Base Rate Loans shall be in
a principal amount of $1,000,000 or a whole multiple of $500,000 in excess
thereof.  Each Loan Notice (whether
telephonic or written) shall specify (i) whether the Borrower’s request is
with respect to Domestic Revolving Loans or Euro Revolving Loans, (ii) whether
the Borrower is requesting a Borrowing, a conversion of Domestic Revolving
Loans from one Type to the other, or a continuation of Eurocurrency Rate Loans,
(iii) the requested date of the Borrowing, conversion or continuation, as
the case may be (which shall be a Business Day), (iv) the principal amount
of Loans to be borrowed, converted or continued, (v) the Type of Loans to
be borrowed or to which existing Loans are to be converted, (vi) if
applicable, the duration of the Interest Period with respect thereto and
(vii) the currency of the Loans to be borrowed.  If the Borrower fails to specify a currency
in a Loan Notice requesting a Borrowing, then the Loans so requested shall be
made in Dollars.  If the Borrower fails
to specify a Type of Loan in a Loan Notice or if the Borrower fails to give a
timely notice requesting a conversion or continuation, then the applicable
Domestic Revolving Loans shall be made as, or converted to, Base Rate Loans; provided,
however, that in the case of a failure to timely request a continuation
of Loans denominated in the Alternative Currency, such Loans shall be continued
as Eurocurrency Rate Loans in their original currency with an Interest Period
of one month.  Any automatic conversion
to Base Rate Loans shall be effective as of the last day of the Interest Period
then in effect with respect to the applicable Eurocurrency Rate Loans.  If the Borrower requests a Borrowing of,
conversion to, or continuation of Eurocurrency Rate Loans in any such Loan
Notice, but fails to specify an Interest Period, it will be deemed to have
specified an Interest Period of one month. 
No Loan may be converted into or continued as a Loan denominated in a
different currency, but instead must be prepaid in the original currency of
such Loan and reborrowed in the other currency.

 

31

 

(c)           Following receipt of a Loan Notice, the
Administrative Agent shall promptly notify each Lender of the amount (and
currency) of its Applicable Percentage of the applicable Loans, and if no
timely notice of a conversion or continuation is provided by the Borrower, the
Administrative Agent shall notify each Lender of the details of any automatic
conversion to Base Rate Loans or a continuation of Loans denominated in the
Alternative Currency, in each case, as described in the preceding
subsection.  In the case of a Borrowing,
each Lender shall make the amount of its Loan available to the Administrative
Agent in Same Day Funds at the Administrative Agent’s Office for the applicable
currency not later than 1:00 p.m., in the case of any Loan denominated in
Dollars, and not later than the Applicable Time specified by the Administrative
Agent in the case of any Loan in the Alternative Currency, in each case on the
Business Day specified in the applicable Loan Notice.  Upon satisfaction of the applicable
conditions set forth in Section 5.02 (and, if such Borrowing is the
initial Credit Extension, Section 5.01), the Administrative Agent
shall make all funds so received available to the Borrower in like funds as
received by the Administrative Agent either by (i) crediting the account
of the Borrower on the books of Bank of America with the amount of such funds
or (ii) wire transfer of such funds, in each case in accordance with
instructions provided to (and reasonably acceptable to) the Administrative
Agent by the Borrower; provided, however, that if, on the date of
a Borrowing of Domestic Revolving Loans, there are L/C Borrowings outstanding,
then the proceeds of such Borrowing, first, shall be applied to the payment in
full of any such L/C Borrowings and second, shall be made available to
the Borrower as provided above.

 

(d)           Except as otherwise provided herein, (i) a Eurocurrency Rate Loan may be
continued or converted only on the last day of the Interest Period for such
Eurocurrency Rate Loan and (ii) without the consent of the Required
Lenders, (A) no Domestic Revolving Loan may be requested as, converted to
or continued as a Eurocurrency Rate Loan and (B) no Euro Revolving Loan
may be continued as a Eurocurrency Rate Loan with an Interest Period greater
than one month.  During the existence of
a Default, no Loans may be requested as, converted to or continued as
Eurocurrency Rate Loans (whether in Dollars or the Alternative Currency)
without the consent of the Required Lenders, and the Required Lenders may
demand that any or all of the then outstanding Eurocurrency Rate Loans denominated
in the Alternative Currency be prepaid, or redenominated into Dollars in the
amount of the Dollar Equivalent thereof, on the last day of the then current
Interest Period with respect thereto.

 

(e)           The Administrative Agent shall promptly notify the
Borrower and the Lenders of the interest rate applicable to any Interest Period
for Eurocurrency Rate Loans upon determination of such interest rate.  At any time that Base Rate Loans are
outstanding, the Administrative Agent shall notify the Borrower and the Lenders
of any change in Bank of America’s prime rate used in determining the Base Rate
promptly following the public announcement of such change.

 

(f)            After giving effect to all Borrowings, all
conversions of Loans from one Type to the other, and all continuations of Loans
as the same Type, there shall not be more than 10 Interest Periods in effect
with respect to all Loans.

 

2.03         Letters of Credit.

 

(a)           The Letter of Credit Commitment.

 

(i)            Subject to the terms and conditions set forth
herein, (A) the L/C Issuer agrees, in reliance upon the agreements of the
Domestic Lenders set forth in this Section 2.03, (1) from time
to time on any Business Day during the period from the Closing Date until the
Letter of Credit Expiration Date, to issue Letters of Credit in Dollars or in
the Alternative Currency for the account of the Borrower or any of its
Subsidiaries, and to amend or extend Letters of Credit 

 

32

 

previously
issued by it, in accordance with subsection (b) below, and (2) to
honor drawings under the Letters of Credit; and (B) the Domestic Lenders
severally agree to participate in Letters of Credit issued for the account of
the Borrower or its Subsidiaries and any drawings thereunder; provided
that after giving effect to any L/C Credit Extension with respect to any Letter
of Credit, (x) the Total Revolving Outstandings shall not exceed the
Maximum Permitted Revolving Outstandings, (y) the aggregate Outstanding
Amount of the Domestic Revolving Loans of any Domestic Lender, plus such
Domestic Lender’s Applicable Percentage of the Outstanding Amount of all L/C
Obligations plus such Domestic Lender’s Applicable Percentage of the
Outstanding Amount of all Swing Line Loans shall not exceed such Domestic
Lender’s Domestic Revolving Commitment and (z) the Outstanding Amount of
the L/C Obligations shall not exceed the Letter of Credit Sublimit.  Each request by the Borrower for the issuance
or amendment of a Letter of Credit shall be deemed to be a representation by
the Borrower that the L/C Credit Extension so requested complies with the
conditions set forth in the proviso to the preceding sentence.  Within the foregoing limits, and subject to
the terms and conditions hereof, the Borrower’s ability to obtain Letters of
Credit shall be fully revolving, and accordingly the Borrower may, during the
foregoing period, obtain Letters of Credit to replace Letters of Credit that
have expired or that have been drawn upon and reimbursed.  Furthermore, each Domestic Lender acknowledges
and confirms that it has a participation interest in the liability of the L/C
Issuer under the Existing Letters of Credit in a percentage equal to its
Applicable Percentage of the Domestic Revolving Loans.  The Borrower’s reimbursement obligations in
respect of the Existing Letters of Credit, and each Domestic Lender’s
obligations in connection therewith, shall be governed by the terms of this
Agreement.

 

(ii)           The L/C Issuer shall not issue any Letter of Credit
if:

 

(A)          subject to Section 2.03(b)(iii),
the expiry date of such requested Letter of Credit would occur more than twelve
months after the date of issuance or last extension, unless the Required
Domestic Lenders have approved such expiry date; or

 

(B)           the expiry date of such
requested Letter of Credit would occur after the Letter of Credit Expiration
Date, unless all the Domestic Lenders have approved such expiry date.

 

(iii)          The L/C Issuer shall not be under any obligation to
issue any Letter of Credit if:

 

(A)          any order, judgment or
decree of any Governmental Authority or arbitrator shall by its terms purport
to enjoin or restrain the L/C Issuer from issuing such Letter of Credit, or any
Law applicable to the L/C Issuer or any request or directive (whether or not
having the force of law) from any Governmental Authority with jurisdiction over
the L/C Issuer shall prohibit, or request that the L/C Issuer refrain from, the
issuance of letters of credit generally or such Letter of Credit in particular
or shall impose upon the L/C Issuer with respect to such Letter of Credit any
restriction, reserve or capital requirement (for which the L/C Issuer is not
otherwise compensated hereunder) not in effect on the Closing Date, or shall
impose upon the L/C Issuer any unreimbursed loss, cost or expense which was not
applicable on the Closing Date and which the L/C Issuer in good faith deems
material to it;

 

(B)           the issuance of such Letter
of Credit would violate one or more policies of the L/C Issuer applicable to
letters of credit generally;

 

33

 

(C)           except as otherwise agreed
by the Administrative Agent and the L/C Issuer, such Letter of Credit is in an
initial stated amount less than $100,000;

 

(D)          such Letter of Credit is to
be denominated in a currency other than Dollars or the Alternative Currency; or

 

(E)           a default of any Domestic
Lender’s obligations to fund under Section 2.03(c) exists or
any Domestic Lender is at such time a Defaulting Domestic Lender hereunder,
unless the L/C Issuer has entered into satisfactory arrangements with the
Borrower or such Domestic Lender to eliminate the L/C Issuer’s risk with
respect to such Domestic Lender.

 

(iv)          The L/C Issuer shall be under no obligation to amend
any Letter of Credit if (A) the L/C Issuer would have no obligation at
such time to issue such Letter of Credit in its amended form under the terms
hereof, or (B) the beneficiary of such Letter of Credit does not accept
the proposed amendment to such Letter of Credit.

 

(v)           The L/C Issuer shall act on behalf of the Domestic
Lenders with respect to any Letters of Credit issued by it and the documents
associated therewith, and the L/C Issuer shall have all of the benefits and
immunities (A) provided to the Administrative Agent in Article X
with respect to any acts taken or omissions suffered by the L/C Issuer in
connection with Letters of Credit issued by it or proposed to be issued by it
and Issuer Documents pertaining to such Letters of Credit as fully as if the
term “Administrative Agent” as used in Article X included the L/C
Issuer with respect to such acts or omissions, and (B) as additionally
provided herein with respect to the L/C Issuer.

 

(b)                                 Procedures for
Issuance and Amendment of Letters of Credit; Auto-Extension Letters of Credit.

 

(i)            Each Letter of Credit shall be issued or amended, as
the case may be, upon the request of the Borrower delivered to the L/C Issuer
(with a copy to the Administrative Agent) in the form of a Letter of Credit
Application, appropriately completed and signed by a Responsible Officer of the
Borrower.  Such Letter of Credit
Application must be received by the L/C Issuer and the Administrative Agent not
later than 11:00 a.m. at least five (5) Business Days (or such later
date and time as the Administrative Agent and the L/C Issuer may agree in a
particular instance in their sole discretion) prior to the proposed issuance
date or date of amendment, as the case may be. 
In the case of a request for an initial issuance of a Letter of Credit,
such Letter of Credit Application shall specify in form and detail satisfactory
to the L/C Issuer: (A) the proposed issuance date of the requested Letter
of Credit (which shall be a Business Day); (B) the amount and currency
thereof; (C) the expiry date thereof; (D) the name and address of the
beneficiary thereof; (E) the documents to be presented by such beneficiary
in case of any drawing thereunder; (F) the full text of any certificate to
be presented by such beneficiary in case of any drawing thereunder; (G) the
purpose and nature of the requested Letter of Credit; and (H) such other
matters as the L/C Issuer may require. 
In the case of a request for an amendment of any outstanding Letter of
Credit, such Letter of Credit Application shall specify in form and detail
satisfactory to the L/C Issuer (A) the Letter of Credit to be amended; (B) the
proposed date of amendment thereof (which shall be a Business Day); (C) the
nature of the proposed amendment; and (D) such other matters as the L/C
Issuer may require.  Additionally, the
Borrower shall furnish to the L/C Issuer and the Administrative Agent such
other documents and information pertaining to such requested Letter of Credit
issuance or amendment, including any Issuer Documents, as the L/C Issuer or the
Administrative Agent may require.

 

34

 

(ii)           Promptly after receipt of any Letter of Credit
Application, the L/C Issuer will confirm with the Administrative Agent (by
telephone or in writing) that the Administrative Agent has received a copy of
such Letter of Credit Application from the Borrower and, if not, the L/C Issuer
will provide the Administrative Agent with a copy thereof.  Unless the L/C Issuer has received written
notice from any Domestic Lender, the Administrative Agent or any Loan Party, at
least one Business Day prior to the requested date of issuance or amendment of
the applicable Letter of Credit, that one or more applicable conditions
contained in Article V shall not be satisfied, then, subject to the
terms and conditions hereof, the L/C Issuer shall, on the requested date, issue
a Letter of Credit for the account of the Borrower or the applicable Subsidiary
or enter into the applicable amendment, as the case may be, in each case in
accordance with the L/C Issuer’s usual and customary business practices.  Immediately upon the issuance of each Letter
of Credit, each Domestic Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the L/C Issuer a risk participation in
such Letter of Credit in an amount equal to the product of such Domestic Lender’s
Applicable Percentage times the amount of such Letter of Credit.

 

(iii)          If the Borrower so requests in any applicable Letter
of Credit Application, the L/C Issuer may, in its sole and absolute discretion,
agree to issue a Letter of Credit that has automatic extension provisions
(each, an “Auto-Extension Letter of Credit”); provided that any
such Auto-Extension Letter of Credit must permit the L/C Issuer to prevent any
such extension at least once in each twelve-month period (commencing with the
date of issuance of such Letter of Credit) by giving prior notice to the
beneficiary thereof not later than a day (the “Non-Extension Notice Date”)
in each such twelve-month period to be agreed upon at the time such Letter of Credit
is issued.  Unless otherwise directed by
the L/C Issuer, the Borrower shall not be required to make a specific request
to the L/C Issuer for any such extension. 
Once an Auto-Extension Letter of Credit has been issued, the Domestic
Lenders shall be deemed to have authorized (but may not require) the L/C Issuer
to permit the extension of such Letter of Credit at any time to an expiry date
not later than the Letter of Credit Expiration Date; provided, however,
that the L/C Issuer shall not permit any such extension if (A) the L/C
Issuer has determined that it would not be permitted, or would have no
obligation, at such time to issue such Letter of Credit in its revised form (as
extended) under the terms hereof (by reason of the provisions of clause (ii) or
(iii) of Section 2.03(a) or otherwise), or (B) it
has received notice (which may be by telephone or in writing) on or before the
day that is seven Business Days before the Non-Extension Notice Date (1) from
the Administrative Agent that the Required Domestic Lenders have elected not to
permit such extension or (2) from the Administrative Agent, any Domestic
Lender or the Borrower that one or more of the applicable conditions specified
in Section 5.02 is not then satisfied, and in each case directing
the L/C Issuer not to permit such extension.

 

(iv)          Promptly after its delivery of any Letter of Credit
or any amendment to a Letter of Credit to an advising bank with respect thereto
or to the beneficiary thereof, the L/C Issuer will also deliver to the Borrower
and the Administrative Agent a true and complete copy of such Letter of Credit
or amendment.

 

(c)           Drawings and Reimbursements; Funding of
Participations.

 

(i)            Upon receipt from the
beneficiary of any Letter of Credit of any notice of drawing under such Letter
of Credit, the L/C Issuer shall notify the Borrower and the Administrative
Agent thereof.  In the case of a Letter
of Credit denominated in the Alternative Currency, the Borrower shall reimburse
the L/C Issuer in the Alternative Currency, unless (A) the L/C Issuer (at
its option) shall have specified in such notice that it will require
reimbursement in

 

35

 

Dollars,
or (B) in the absence of any such requirement for reimbursement in
Dollars, the Borrower shall have notified the L/C Issuer promptly following
receipt of the notice of drawing that the Borrower will reimburse the L/C
Issuer in Dollars.  In the case of any
such reimbursement in Dollars of a drawing under a Letter of Credit denominated
in the Alternative Currency, the L/C Issuer shall notify the Borrower of the
Dollar Equivalent of the amount of the drawing promptly following the
determination thereof.  Not later than
11:00 a.m. on the date of any payment by the L/C Issuer under a Letter of
Credit to be reimbursed in Dollars, or the Applicable Time on the date of any
payment by the L/C Issuer under a Letter of Credit to be reimbursed in the
Alternative Currency (each such date, an “Honor Date”), the Borrower
shall reimburse the L/C Issuer through the Administrative Agent in an amount
equal to the amount of such drawing and in the applicable currency.  If the Borrower fails to so reimburse the L/C
Issuer by such time, the Administrative Agent shall promptly notify each
Domestic Lender of the Honor Date, the amount of the unreimbursed drawing
(expressed in Dollars or in the amount of the Dollar Equivalent thereof in the
case of a Letter of Credit denominated in the Alternative Currency) (the “Unreimbursed
Amount”), and the amount of such Domestic Lender’s Applicable Percentage
thereof.  In such event, the Borrower
shall be deemed to have requested a Borrowing of Base Rate Loans to be
disbursed on the Honor Date in an amount equal to the Unreimbursed Amount,
without regard to the minimum and multiples specified in Section 2.02
for the principal amount of Base Rate Loans, but subject to the amount of the
unutilized portion of the Aggregate Domestic Revolving Commitments and the
conditions set forth in Section 5.02 (other than the delivery of a
Loan Notice).  Any notice given by the
L/C Issuer or the Administrative Agent pursuant to this Section 2.03(c)(i) may
be given by telephone if immediately confirmed in writing; provided that
the lack of such an immediate confirmation shall not affect the conclusiveness
or binding effect of such notice.

 

(ii)           Each Domestic Lender shall upon any notice pursuant
to Section 2.03(c)(i) make funds available to the
Administrative Agent for the account of the L/C Issuer, in Dollars, at the  Administrative Agent’s Office for
Dollar-denominated payments in an amount equal to its Applicable Percentage of
the Unreimbursed Amount not later than 1:00 p.m. on the Business Day
specified in such notice by the Administrative Agent, whereupon, subject to the
provisions of Section 2.03(c)(iii), each Domestic Lender that so
makes funds available shall be deemed to have made a Base Rate Loan to the
Borrower in such amount.  The
Administrative Agent shall remit the funds so received to the L/C Issuer in
Dollars.

 

(iii)          With respect to any Unreimbursed Amount that is not
fully refinanced by a Borrowing of Base Rate Loans because the conditions set
forth in Section 5.02 cannot be satisfied or for any other reason,
the Borrower shall be deemed to have incurred from the L/C Issuer an L/C
Borrowing in the amount of the Unreimbursed Amount that is not so refinanced,
which L/C Borrowing shall be due and payable on demand (together with interest)
and shall bear interest at the Default Rate. 
In such event, each Domestic Lender’s payment to the Administrative
Agent for the account of the L/C Issuer pursuant to Section 2.03(c)(ii) shall
be deemed payment in respect of its participation in such L/C Borrowing and
shall constitute an L/C Advance from such Domestic Lender in satisfaction of
its participation obligation under this Section 2.03.

 

(iv)          Until each Domestic Lender funds its Domestic
Revolving Loan or L/C Advance pursuant to this Section 2.03(c) to
reimburse the L/C Issuer for any amount drawn under any Letter of Credit,
interest in respect of such Domestic Lender’s Applicable Percentage of such
amount shall be solely for the account of the applicable  L/C Issuer.

 

(v)           Each Domestic Lender’s obligation to make Domestic
Revolving Loans or L/C Advances to reimburse the L/C Issuer for amounts drawn
under Letters of Credit, as

 

36

 

contemplated
by this Section 2.03(c), shall be absolute and unconditional and
shall not be affected by any circumstance, including (A) any setoff,
counterclaim, recoupment, defense or other right which such Domestic Lender may
have against the L/C Issuer, the Borrower or any other Person for any reason
whatsoever; (B) the occurrence or continuance of a Default, or (C) any
other occurrence, event or condition, whether or not similar to any of the
foregoing; provided, however, that each Domestic Lender’s
obligation to make Domestic Revolving Loans pursuant to this Section 2.03(c) is
subject to the conditions set forth in Section 5.02 (other than
delivery by the Borrower of a Loan Notice). 
No such making of an L/C Advance shall relieve or otherwise impair the
obligation of the Borrower to reimburse the L/C Issuer for the amount of any
payment made by the L/C Issuer under any Letter of Credit, together with
interest as provided herein.

 

(vi)          If any Domestic Lender fails to make available to
the Administrative Agent for the account of the L/C Issuer any amount required
to be paid by such Domestic Lender pursuant to the foregoing provisions of this
Section 2.03(c) by the time specified in Section 2.03(c)(ii),
the L/C Issuer shall be entitled to recover from such Domestic Lender (acting
through the Administrative Agent), on demand, such amount with interest thereon
for the period from the date such payment is required to the date on which such
payment is immediately available to the L/C Issuer at a rate per annum equal to
the applicable Overnight Rate from time to time in effect.  A certificate of the L/C Issuer submitted to
any Domestic Lender (through the Administrative Agent) with respect to any
amounts owing under this clause (vi) shall be conclusive absent manifest
error.

 

(d)           Repayment of Participations.

 

(i)            At any time after the L/C Issuer has made a payment
under any Letter of Credit and has received from any Domestic Lender such Domestic
Lender’s L/C Advance in respect of such payment in accordance with Section 2.03(c),
if the Administrative Agent receives for the account of the L/C Issuer any
payment in respect of the related Unreimbursed Amount or interest thereon
(whether directly from the Borrower or otherwise, including proceeds of Cash
Collateral applied thereto by the Administrative Agent), the Administrative
Agent will distribute to such Domestic Lender its Applicable Percentage thereof
(appropriately adjusted, in the case of interest payments, to reflect the
period of time during which such Domestic Lender’s L/C Advance was outstanding)
in Dollars and in the same funds as those received by the Administrative Agent.

 

(ii)           If any payment received by the Administrative Agent
for the account of the L/C Issuer pursuant to Section 2.03(c)(i) is
required to be returned under any of the circumstances described in Section 11.05
(including pursuant to any settlement entered into by the L/C Issuer in its
discretion), each Domestic Lender shall pay to the Administrative Agent for the
account of the L/C Issuer its Applicable Percentage thereof on demand of the
Administrative Agent, plus interest thereon from the date of such demand
to the date such amount is returned by such Domestic Lender, at a rate per
annum equal to the Overnight Rate from time to time in effect.  The obligations of the Domestic Lenders under
this clause shall survive the payment in full of the Obligations and the
termination of this Agreement.

 

(e)           Obligations Absolute.  The obligation of the Borrower to reimburse
the L/C Issuer for each drawing under each Letter of Credit and to repay each
L/C Borrowing shall be absolute, unconditional and irrevocable, and shall be
paid strictly in accordance with the terms of this Agreement under all
circumstances, including the following:

 

(i)            any lack of validity or enforceability of such
Letter of Credit, this Agreement or any other Loan Document;

 

37

 

(ii)           the existence of any claim, counterclaim, setoff,
defense or other right that the Borrower or any Subsidiary may have at any time
against any beneficiary or any transferee of such Letter of Credit (or any
Person for whom any such beneficiary or any such transferee may be acting), the
L/C Issuer or any other Person, whether in connection with this Agreement, the
transactions contemplated hereby or by such Letter of Credit or any agreement
or instrument relating thereto, or any unrelated transaction;

 

(iii)          any draft, demand, certificate or other document
presented under such Letter of Credit proving to be forged, fraudulent, invalid
or insufficient in any respect or any statement therein being untrue or
inaccurate in any respect; or any loss or delay in the transmission or
otherwise of any document required in order to make a drawing under such Letter
of Credit;

 

(iv)          any payment by the L/C Issuer under such Letter of
Credit against presentation of a draft or certificate that does not strictly
comply with the terms of such Letter of Credit; or any payment made by the L/C
Issuer under such Letter of Credit to any Person purporting to be a trustee in
bankruptcy, debtor-in-possession, assignee for the benefit of creditors,
liquidator, receiver or other representative of or successor to any beneficiary
or any transferee of such Letter of Credit, including any arising in connection
with any proceeding under any Debtor Relief Law;

 

(v)           any adverse change in the relevant exchange rates or
in the availability of the Alternative Currency to the Borrower or any
Subsidiary or in the relevant currency markets generally; or

 

(vi)          any other circumstance or happening whatsoever,
whether or not similar to any of the foregoing, including any other
circumstance that might otherwise constitute a defense available to, or a
discharge of, the Borrower or any Subsidiary.

 

provided, that the
foregoing shall not be construed to excuse the L/C Issuer from liability to the
Borrower to the extent of any direct damages (as opposed to consequential
damages, claims in respect of which are hereby waived by the Borrower to the
extent permitted by applicable law) suffered by the Borrower that are caused by
the applicable LC Issuer’s failure to exercise care when determining whether
drafts and other documents presented under a Letter of Credit comply with the
terms thereof.

 

The
Borrower shall promptly examine a copy of each Letter of Credit and each
amendment thereto that is delivered to it and, in the event of any claim of
noncompliance with the Borrower’s instructions or other irregularity, the
Borrower will immediately notify the L/C Issuer.  The Borrower shall be conclusively deemed to
have waived any such claim against the L/C Issuer and its correspondents unless
such notice is given as aforesaid.

 

(f)            Role of L/C Issuer.  Each Domestic Lender and the Borrower agree
that, in paying any drawing under a Letter of Credit, the L/C Issuer shall not
have any responsibility to obtain any document (other than any sight draft,
certificates and documents expressly required by such Letter of Credit) or to
ascertain or inquire as to the validity or accuracy of any such document or the
authority of the Person executing or delivering any such document.  None of the L/C Issuer, the Administrative
Agent, any of their respective Related Parties nor any correspondent,
participant or assignee of the L/C Issuer shall be liable to any Domestic
Lender for (i) any action taken or omitted in connection herewith at the
request or with the approval of the Domestic Lenders or the Required Domestic
Lenders, as applicable; (ii) any action taken or omitted in the absence of
gross negligence or willful misconduct; or (iii) the due execution,
effectiveness, validity or enforceability of any document or instrument related
to any Letter of Credit or Issuer Document. 
The Borrower hereby assumes all risks of the acts or omissions of any 

 

38

 

beneficiary
or transferee with respect to its use of any Letter of Credit; provided,
however, that this assumption is not intended to, and shall not,
preclude the Borrower’s pursuing such rights and remedies as it may have
against the beneficiary or transferee at law or under any other agreement.  None of the L/C Issuer, the Administrative
Agent, any of their respective Related Parties nor any correspondent,
participant or assignee of the L/C Issuer shall be liable or responsible for
any of the matters described in clauses (i) through (v) of Section 2.03(e);
provided, however, that anything in such clauses to the contrary
notwithstanding, the Borrower may have a claim against the L/C Issuer, and the
L/C Issuer may be liable to the Borrower, to the extent, but only to the
extent, of any direct, as opposed to consequential or exemplary, damages
suffered by the Borrower which the Borrower proves were caused by the L/C
Issuer’s willful misconduct or gross negligence or the L/C Issuer’s willful
failure to pay under any Letter of Credit after the presentation to it by the
beneficiary of a sight draft and certificate(s) strictly complying with
the terms and conditions of a Letter of Credit unless the L/C Issuer is
prevented or prohibited from so paying as a result of any order or directive of
any court or other Governmental Authority. 
In furtherance and not in limitation of the foregoing, the L/C Issuer
may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or
information to the contrary, and the L/C Issuer shall not be responsible for
the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign a Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason.

 

(g)           Cash Collateral.  (i) Upon the request of the
Administrative Agent, (i) if the L/C Issuer has honored any full or
partial drawing request under any Letter of Credit and such drawing has
resulted in an L/C Borrowing, or (ii) if, as of the Letter of Credit
Expiration Date, any L/C Obligation for any reason remains outstanding, the
Borrower shall, in each case, immediately Cash Collateralize the then
Outstanding Amount of all L/C Obligations.

 

(ii)           In addition, if the Administrative Agent notifies
the Borrower at any time that the Outstanding Amount of all L/C Obligations at
such time exceeds 105% of the Letter of Credit Sublimit then in effect, then,
within two Business Days after receipt of such notice, the Borrower shall Cash
Collateralize the L/C Obligations in an amount equal to the amount by which the
Outstanding Amount of all L/C Obligations exceeds the Letter of Credit
Sublimit.

 

(iii)          Sections 2.05 and 9.02 set forth
certain additional requirements to deliver Cash Collateral hereunder.  For purposes of this Section 2.03,
Section 2.05 and Section 9.02, “Cash Collateralize”
means to pledge and deposit with or deliver to the Administrative Agent, for
the benefit of the L/C Issuer and the Domestic Lenders, as collateral for the
L/C Obligations, cash or deposit account balances pursuant to documentation in
form and substance satisfactory to the Administrative Agent and the L/C Issuer
(which documents are hereby consented to by the Domestic Lenders).  Derivatives of such term have corresponding
meanings.  The Borrower hereby grants to
the Administrative Agent, for the benefit of the L/C Issuer and the Domestic
Lenders, a security interest in all such cash, deposit accounts and all
balances therein and all proceeds of the foregoing.  Cash Collateral shall be maintained in
blocked, non-interest bearing deposit accounts with the Administrative Agent.

 

(h)           Applicability of ISP.  Unless otherwise expressly agreed by the L/C
Issuer and the Borrower when a Letter of Credit is issued (including any such
agreement applicable to an Existing Letter of Credit), the rules of the
ISP shall apply to each Letter of Credit.

 

(i)            Letter of Credit Fees.  The Borrower shall pay to the Administrative
Agent a Letter of Credit fee (the “Letter of Credit Fee”) in Dollars for
the account of each Domestic Lender in accordance with its Applicable
Percentage for each Letter of Credit denominated in Dollars equal to the
Applicable Rate times the daily maximum amount available to be drawn
under such Letter of Credit.  For
purposes of 

 

39

 

computing
the daily amount available to be drawn under any Letter of Credit, the amount
of such Letter of Credit shall be determined in accordance with Section 1.07.  Letter of Credit Fees shall be
(i) computed on a quarterly basis in arrears and (ii) due and payable
on the first Business Day after the end of each March, June, September and
December, commencing with the first such date to occur after the issuance of
such Letter of Credit, on the Letter of Credit Expiration Date and thereafter
on demand.  If there is any change in the
Applicable Rate during any quarter, the daily amount available to be drawn
under each Letter of Credit shall be computed and multiplied by the Applicable
Rate separately for each period during such quarter that such Applicable Rate
was in effect.  Notwithstanding anything
to the contrary contained herein, while any Event of Default exists, all Letter
of Credit Fees shall accrue at the Default Rate.

 

(j)            Fronting Fee and Documentary and Processing
Charges Payable to L/C Issuer. The Borrower shall pay a
fronting fee directly to the L/C Issuer for its own account with respect to
each Letter of Credit, at the rate per annum specified in the Fee Letter,
computed on the actual daily maximum amount available to be drawn under such
Letter of Credit (whether or not such maximum amount is then in effect under
such Letter of Credit) and on a quarterly basis in arrears.  Such fronting fee shall be due and payable on
the tenth Business Day after the end of each March, June, September and
December in respect of the most recently-ended quarterly period (or
portion thereof, in the case of the first payment), commencing with the first
such date to occur after the issuance of such Letter of Credit, on the Letter of
Credit Expiration Date and thereafter on demand.  For purposes of computing the daily amount
available to be drawn under any Letter of Credit, the amount of such Letter of
Credit shall be determined in accordance with Section 1.06.  In addition, the Borrower shall pay directly
to the L/C Issuer for its own account the customary issuance, presentation,
amendment and other processing fees, and other standard costs and charges, of
the L/C Issuer relating to letters of credit as from time to time in effect.  Such customary fees and standard costs and
charges are due and payable on demand and are nonrefundable.

 

(k)           Conflict with Issuer Documents.  In the event of any conflict between the
terms hereof and the terms of any Issuer Document, the terms hereof shall
control.

 

(l)            Letters of Credit Issued for Subsidiaries.  Notwithstanding that a Letter of Credit
issued or outstanding hereunder is in support of any obligations of, or is for
the account of, a Subsidiary, the Borrower shall be obligated to reimburse the
L/C Issuer hereunder for any and all drawings under such Letter of Credit.  The Borrower hereby acknowledges that the
issuance of Letters of Credit for the account of Subsidiaries inures to the
benefit of the Borrower, and that the Borrower’s business derives substantial
benefits from the businesses of such Subsidiaries.

 

2.04         Swing Line Loans.

 

(a)           Swing Line Facility.  Subject to the terms and conditions set forth
herein, the Swing Line Lender agrees, in reliance upon the agreements of the
other Domestic Lenders set forth in this Section 2.04, to make
loans (each such loan, a “Swing Line Loan”) to the Borrower in Dollars
from time to time on any Business Day during the Availability Period in an
aggregate amount not to exceed at any time outstanding the amount of the Swing
Line Sublimit; provided, however, that after giving effect to any
Swing Line Loan, (i) the Total Revolving Outstandings shall not exceed the
Maximum Permitted Revolving Outstandings, and (ii) the aggregate
Outstanding Amount of the Domestic Revolving Loans of any Domestic Lender, plus
such Domestic Lender’s Applicable Percentage of the Outstanding Amount of all
L/C Obligations, plus such Domestic Lender’s Applicable Percentage of
the Outstanding Amount of all Swing Line Loans shall not exceed such Domestic
Lender’s Domestic Revolving Commitment, and provided, further,
that (i) the Borrower shall not use the proceeds of any Swing Line Loan to
refinance any outstanding Swing Line Loan and (ii) the availability of the
Aggregate Revolving Commitments at any time for the making of Loans and the
issuance of Letters of Credit shall be reduced by the amount of 

 

40

 

the
Alternative Currency Reserve.  Within the
foregoing limits, and subject to the other terms and conditions hereof, the
Borrower may borrow under this Section 2.04, prepay under Section 2.05,
and reborrow under this Section 2.04.  Each Swing Line Loan shall be a Base Rate
Loan.  Immediately upon the making of a
Swing Line Loan, each Domestic Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the Swing Line Lender
a risk participation in such Swing Line Loan in an amount equal to the product
of such Domestic Lender’s Applicable Percentage times the amount of such
Swing Line Loan.

 

(b)           Borrowing Procedures.  Each Borrowing of Swing Line Loans shall be
made upon the Borrower’s irrevocable notice to the Swing Line Lender and the
Administrative Agent, which may be given by telephone.  Each such notice must be received by the
Swing Line Lender and the Administrative Agent not later than 1:00 p.m. on
the requested borrowing date, and shall specify (i) the amount to be
borrowed, which shall be a minimum principal amount of $250,000 and integral
multiples of $100,000 in excess thereof, and (ii) the requested borrowing
date, which shall be a Business Day. 
Each such telephonic notice must be confirmed promptly by delivery to
the Swing Line Lender and the Administrative Agent of a written Swing Line Loan
Notice, appropriately completed and signed by a Responsible Officer of the
Borrower.  Promptly after receipt by the
Swing Line Lender of any telephonic Swing Line Loan Notice, the Swing Line
Lender will confirm with the Administrative Agent (by telephone or in writing)
that the Administrative Agent has also received such Swing Line Loan Notice
and, if not, the Swing Line Lender will notify the Administrative Agent (by
telephone or in writing) of the contents thereof.  Unless the Swing Line Lender has received notice
(by telephone or in writing) from the Administrative Agent (including at the
request of any Domestic Lender) prior to 2:00 p.m. on the date of the
proposed Borrowing of Swing Line Loans (A) directing the Swing Line Lender
not to make such Swing Line Loan as a result of the limitations set forth in
the first proviso to the first sentence of Section 2.04(a), or (B) that
one or more of the applicable conditions specified in Article V is
not then satisfied, then, subject to the terms and conditions hereof, the Swing
Line Lender will, not later than 3:00 p.m. on the borrowing date specified
in such Swing Line Loan Notice, make the amount of its Swing Line Loan
available to the Borrower.

 

(c)           Refinancing of Swing Line Loans.

 

(i)            The Swing Line Lender at any
time in its sole and absolute discretion may request, on behalf of the Borrower
(which hereby irrevocably requests and authorizes the Swing Line Lender to so
request on its behalf), that each Domestic Lender make a Base Rate Loan in an
amount equal to such Domestic Lender’s Applicable Percentage of the amount of
Swing Line Loans then outstanding.  Such
request shall be made in writing (which written request shall be deemed to be a
Loan Notice for purposes hereof) and in accordance with the requirements of Section 2.02,
without regard to the minimum and multiples specified therein for the principal
amount of Base Rate Loans, but subject to the conditions set forth in Section 5.02
(other than the delivery of a Loan Notice) and provided that, after giving
effect to such Borrowing, the Total Revolving Outstandings shall not exceed the
Maximum Permitted Revolving Outstandings. 
The Swing Line Lender shall furnish the Borrower with a copy of the
applicable Loan Notice promptly after delivering such notice to the Administrative
Agent.  Each Domestic Lender shall make
an amount equal to its Applicable Percentage of the amount specified in such
Loan Notice available to the Administrative Agent in immediately available
funds for the account of the Swing Line Lender at the Administrative Agent’s
Office not later than 1:00 p.m. on the day specified in such Loan Notice,
whereupon, subject to Section 2.04(c)(ii), each Domestic Lender
that so makes funds available shall be deemed to have made a Base Rate Loan to
the Borrower in such amount.  The
Administrative Agent shall remit the funds so received to the Swing Line
Lender.

 

41

 

 

(ii)           If for any reason any Swing
Line Loan cannot be refinanced by such a Borrowing of Domestic Revolving Loans
in accordance with Section 2.04(c)(i), the request for Base Rate
Loans submitted by the Swing Line Lender as set forth herein shall be deemed to
be a request by the Swing Line Lender that each of the Domestic Lenders fund
its risk participation in the relevant Swing Line Loan and each Domestic Lender’s
payment to the Administrative Agent for the account of the Swing Line Lender
pursuant to Section 2.04(c)(i) shall be deemed payment in
respect of such participation.

 

(iii)          If any Domestic Lender fails
to make available to the Administrative Agent for the account of the Swing Line
Lender any amount required to be paid by such Domestic Lender pursuant to the
foregoing provisions of this Section 2.04(c) by the time
specified in Section 2.04(c)(i), the Swing Line Lender shall be
entitled to recover from such Domestic Lender (acting through the
Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment is required to the date on which such payment
is immediately available to the Swing Line Lender at a rate per annum equal to
the greater of the Federal Funds Rate and a rate determined by the Swing Line Lender
in accordance with banking industry rules on interbank compensation.  A certificate of the Swing Line Lender
submitted to any Domestic Lender (through the Administrative Agent) with
respect to any amounts owing under this clause (iii) shall be conclusive
absent manifest error.

 

(iv)          Each Domestic Lender’s
obligation to make Domestic Revolving Loans or to purchase and fund risk
participations in Swing Line Loans pursuant to this Section 2.04(c) shall
be absolute and unconditional and shall not be affected by any circumstance,
including (A) any setoff, counterclaim, recoupment, defense or other right
that such Domestic Lender may have against the Swing Line Lender, the Borrower
or any other Person for any reason whatsoever, (B) the occurrence or
continuance of a Default, or (C) any other occurrence, event or condition,
whether or not similar to any of the foregoing; provided, however,
that each Domestic Lender’s obligation to make Domestic Revolving Loans
pursuant to this Section 2.04(c) is subject to the conditions
set forth in Section 5.02. 
No such purchase or funding of risk participations shall relieve or
otherwise impair the obligation of the Borrower to repay Swing Line Loans,
together with interest as provided herein.

 

(d)           Repayment of Participations.

 

(i)            At any time after any
Domestic Lender has purchased and funded a risk participation in a Swing Line
Loan, if the Swing Line Lender receives any payment on account of such Swing
Line Loan, the Swing Line Lender will distribute to such Domestic Lender its
Applicable Percentage of such payment (appropriately adjusted, in the case of
interest payments, to reflect the period of time during which such Domestic
Lender’s risk participation was funded) in the same funds as those received by
the Swing Line Lender.

 

(ii)           If any payment received by
the Swing Line Lender in respect of principal or interest on any Swing Line
Loan is required to be returned by the Swing Line Lender under any of the
circumstances described in Section 11.05 (including pursuant to any
settlement entered into by the Swing Line Lender in its discretion), each
Domestic Lender shall pay to the Swing Line Lender its Applicable Percentage
thereof on demand of the Administrative Agent, plus interest thereon
from the date of such demand to the date such amount is returned, at a rate per
annum equal to the Federal Funds Rate. 
The Administrative Agent will make such demand upon the request of the
Swing Line Lender.  The obligations of
the Domestic Lenders under this clause shall survive the payment in full of the
Obligations and the termination of this Agreement.

 

42

 

(e)           Interest for Account of Swing Line Lender.  The Swing Line Lender shall be responsible
for invoicing the Borrower for interest on the Swing Line Loans.  Until each Domestic Lender funds its Domestic
Revolving Loans that are Base Rate Loans or risk participation pursuant to this
Section 2.04 to refinance such Domestic Lender’s Applicable
Percentage of any Swing Line Loan, interest in respect of such Applicable
Percentage shall be solely for the account of the Swing Line Lender.

 

(f)            Payments Directly to Swing Line Lender.  The Borrower shall make all payments of
principal and interest in respect of the Swing Line Loans directly to the Swing
Line Lender.

 

2.05         Prepayments.

 

(a)           Voluntary Prepayments.

 

(i)            Revolving Loans.  Subject to the last sentence of this Section 2.05(a)(i),
the Borrower may, upon notice from the Borrower to the Administrative Agent, at
any time or from time to time voluntarily prepay Revolving Loans in whole or in
part without premium or penalty; provided that (A) such notice must
be received by the Administrative Agent not later than 11:00 a.m. (1) three
Business Days prior to any date of prepayment of Eurocurrency Rate Loans
denominated in Dollars, (2) four Business Days prior to any date of
prepayment of Eurocurrency Rate Loans denominated in the Alternative Currency
and (3) on the date of prepayment of Base Rate Loans; (B) any such
prepayment of Eurocurrency Rate Loans shall be in a principal amount of
$1,000,000 or a whole multiple of $1,000,000 in excess thereof (or, if less,
the entire principal amount thereof then outstanding); and (C) any
prepayment of Base Rate Loans shall be in a principal amount of $1,000,000 or a
whole multiple of $500,000 in excess thereof (or, if less, the entire principal
amount thereof then outstanding).  Each
such notice shall specify the date and amount of such prepayment and the Type(s) of
Loans to be prepaid and whether the Loans to be prepaid are the Revolving
Loans.  The Administrative Agent will
promptly notify each Lender of its receipt of each such notice, and of the
amount of such Lender’s Applicable Percentage of such prepayment.  If such notice is given by the Borrower, the
Borrower shall make such prepayment and the payment amount specified in such
notice shall be due and payable on the date specified therein.  Any prepayment of a Eurocurrency Rate Loan
shall be accompanied by all accrued interest on the amount prepaid, together
with any additional amounts required pursuant to Section 3.05.  Each such prepayment shall be applied to the
Loans of the Lenders in accordance with their respective Applicable
Percentages.

 

(ii)           Swing Line Loans.  The Borrower may, upon notice to the Swing
Line Lender (with a copy to the Administrative Agent), at any time or from time
to time, voluntarily prepay Swing Line Loans in whole or in part without
premium or penalty; provided that (i) such notice must be received
by the Swing Line Lender and the Administrative Agent not later than 1:00 p.m.
on the date of the prepayment, and (ii) any such prepayment shall be in a
minimum principal amount of $500,000 or a whole multiple of $100,000 in excess
thereof (or, if less, the entire principal thereof then outstanding).  Each such notice shall specify the date and
amount of such prepayment.  If such
notice is given by the Borrower, the Borrower shall make such prepayment and the
payment amount specified in such notice shall be due and payable on the date
specified therein.

 

(b)           Mandatory Prepayments of Loans.

 

(i)            (A)  Domestic Revolving Commitments.  If for any reason (1) the Total
Revolving Outstandings at any time exceed the Maximum Permitted Revolving
Outstandings or (2) the Total Domestic Revolving Outstandings at any time
exceed the Aggregate Domestic 

 

43

 

Revolving
Commitments then in effect,  the Borrower
shall immediately prepay the Domestic Revolving Loans and/or the Swing Line
Loans and/or Cash Collateralize the L/C Obligations in an aggregate amount
equal to such excess; provided, however, that the Borrower shall
not be required to Cash Collateralize the L/C Obligations pursuant to this Section 2.05(b) unless
after the prepayment in full of the Domestic Revolving Loans and the Swing Line
Loans, the Total Domestic Revolving Outstandings exceed the Maximum Permitted
Revolving Outstandings.  All amounts
required to be paid pursuant to this Section 2.05(b)(i)(A) shall
be applied to Domestic Revolving Loans and Swing Line Loans and (after all
Domestic Revolving Loans and Swing Line Loans have been repaid) to Cash
Collateralize L/C Obligations.

 

(B)           Euro Revolving
Commitments.  If for any
reason (1) the Total Revolving Outstandings at any time exceed the Maximum
Permitted Revolving Outstandings or (2) the Total Euro Revolving
Outstandings at any time exceed the Aggregate Euro Revolving Commitments then
in effect,  the Borrower shall
immediately prepay the Euro Revolving Loans in an aggregate amount equal to
such excess.  All amounts required to be
paid pursuant to this Section 2.05(b)(i)(B) shall be applied
to Euro Revolving Loans.

 

(ii)           If the Administrative Agent notifies the Borrower at
any time that the Outstanding Amount of all Loans denominated in Alternative
Currencies at such time exceeds an amount equal to 105% of the Aggregate Euro
Revolving Commitments then in effect, then, within two Business Days after
receipt of such notice, the Borrower shall prepay Loans in an aggregate amount
sufficient to reduce such Outstanding Amount as of such date of payment to an
amount not to exceed 100% of the Euro Revolving Commitments then in effect.

 

2.06         Termination or Reduction of
Aggregate Revolving Commitments.

 

(a)           Optional Reductions.  The Borrower may, upon notice to the
Administrative Agent, terminate the Aggregate Domestic Revolving Commitments
and/or the Aggregate Euro Revolving Commitments, or from time to time
permanently reduce the Aggregate Domestic Revolving Commitments and/or the
Aggregate Euro Revolving Commitments to an amount not less than the Outstanding
Amount of Revolving Loans, Swing Loans and L/C Obligations; provided
that (i) any such notice shall be received by the Administrative Agent not
later than 12:00 noon five (5) Business Days prior to the date of
termination or reduction, (ii) any such partial reduction shall be in an
aggregate amount of $2,000,000 or any whole multiple of $1,000,000 in excess
thereof, (iii) the Borrower shall not terminate or reduce (A) the
Aggregate Revolving Commitments if, after giving effect thereto and to any
concurrent prepayments hereunder, the Total Revolving Outstandings plus the
Alternative Currency Reserve would exceed the Maximum Permitted Revolving
Outstandings, (B) the Aggregate Domestic Revolving Commitments if, after
giving effect thereto and to any concurrent prepayments hereunder, the Total
Domestic Revolving Outstandings would exceed the Aggregate Domestic Revolving
Commitments, (C) the Aggregate Euro Revolving Commitments if, after giving
effect thereto and to any concurrent prepayments hereunder, the Total Euro
Revolving Outstandings would exceed the Aggregate Euro Revolving Commitments, (D) the
Letter of Credit Sublimit if, after giving effect thereto, the Outstanding
Amount of L/C Obligations not fully Cash Collateralized hereunder would exceed
the Letter of Credit Sublimit, or (E) the Swing Line Sublimit if, after
giving effect thereto and to any concurrent prepayments hereunder, the
Outstanding Amount of Swing Line Loans would exceed the Swing Line Sublimit and
(iv) if, after giving effect to any reduction of the Aggregate Revolving
Commitments, the Letter of Credit Sublimit or the Swing Line Sublimit exceeds
the amount of the Maximum Permitted Revolving Outstandings, such Sublimit shall
be automatically reduced by the amount of such excess.

 

(b)           Notice.  The Administrative Agent will promptly notify
the Lenders of any termination or reduction of the Letter of Credit Sublimit,
Swing Line Sublimit or the Aggregate Revolving

 

44

 

Commitments
under this Section 2.06. 
Upon any reduction of (i) the Aggregate Domestic Revolving
Commitments, the Domestic Revolving Commitment of each Domestic Lender shall be
reduced by such Domestic Lender’s Applicable Percentage of such reduction
amount and (ii) the Aggregate Euro Revolving Commitments, the Euro
Revolving Commitment of each Euro Lender shall be reduced by such Euro Lender’s
Applicable Percentage of such reduction amount. 
All fees in respect of the Aggregate Revolving Commitments accrued until
the effective date of any termination of the Aggregate Revolving Commitments
shall be paid on the effective date of such termination.

 

 

2.07         Repayment of Loans.

 

(a)           Domestic Revolving Loans.  The Borrower shall repay to the Domestic
Lenders on the Maturity Date the aggregate principal amount of all Domestic
Revolving Loans outstanding on such date.

 

(b)           Euro Revolving Loans.  The Borrower shall repay to the Euro Lenders
on the Maturity Date the aggregate principal amount of all Euro Revolving Loans
outstanding on such date.

 

(c)           Swing Line Loans.  The Borrower shall repay each Swing Line Loan
on the earlier to occur of (i) the date within one (1) Business Day
of demand therefor by the Swing Line Lender and (ii) the Maturity Date.

 

2.08         Interest.

 

(a) Subject to the provisions of
subsection (b) below, (i) each Eurocurrency Rate Loan shall bear
interest on the outstanding principal amount thereof for each Interest Period
at a rate per annum equal to the Eurocurrency Rate for such Interest Period plus
the Applicable Rate plus (in the case of a Eurocurrency Rate Loan of any
Lender which is lent from a Lending Office in the United Kingdom or a
Participating Member State) the Mandatory Cost; (ii) each Base Rate Loan
shall bear interest on the outstanding principal amount thereof from the
applicable borrowing date at a rate per annum equal to the Base Rate plus
the Applicable Rate; and (iii) each Swing Line Loan shall bear interest on
the outstanding principal amount thereof from the applicable borrowing date at
a rate per annum equal to the Base Rate plus the Applicable Rate.

 

(b)           (i)            If any amount of principal of any Loan is not paid
when due (without regard to any applicable grace periods), whether at stated
maturity, by acceleration or otherwise, such amount shall thereafter bear
interest at a fluctuating interest rate per annum at all times equal to the
Default Rate to the fullest extent permitted by applicable Laws.

 

(ii)           If any amount
(other than principal of any Loan) payable by the Borrower under any Loan
Document is not paid when due (without regard to any applicable grace periods),
whether at stated maturity, by acceleration or otherwise, then such amount
shall thereafter bear interest at a fluctuating interest rate per annum at all
times equal to the Default Rate to the fullest extent permitted by applicable
Laws.

 

(iii)          Accrued and
unpaid interest on past due amounts (including interest on past due interest)
shall be due and payable upon demand.

 

(c)           Interest on each Loan shall be due and payable in
arrears on each Interest Payment Date applicable thereto and at such other
times as may be specified herein. 
Interest hereunder shall be due and payable in accordance with the terms
hereof before and after judgment, and before and after the commencement of any
proceeding under any Debtor Relief Law.

 

45

 

2.09         Fees.

 

In
addition to certain fees described in subsections (i) and (j) of Section 2.03:

 

(a)           Commitment Fee.  The Borrower shall pay to the Administrative
Agent, a commitment fee in Dollars (i) for the account of each Domestic
Lender in accordance with its Applicable Percentage, at a rate per annum equal
to the product of (A) the Applicable Rate times (B) the actual
daily amount by which the Aggregate Domestic Revolving Commitments exceed the
sum of (1) the Outstanding Amount of Domestic Revolving Loans and (2) the
Outstanding Amount of L/C Obligations and (ii) the account of each Euro
Lender in accordance with its Applicable Percentage, at a rate per annum equal
to the product of (A) the Applicable Rate times (B) the actual
daily amount by which the Aggregate Euro Revolving Commitments exceed the
Outstanding Amount of Euro Revolving Loans. The commitment fee shall accrue at
all times during the Availability Period, including at any time during which
one or more of the conditions in Article V is not met, and shall be
due and payable quarterly in arrears on the last Business Day of each March,
June, September and December, commencing with the first such date to occur
after the Closing Date, and on the Maturity Date. The commitment fee shall be
calculated quarterly in arrears, and if there is any change in the Applicable
Rate during any quarter, the actual daily amount shall be computed and
multiplied by the Applicable Rate separately for each period during such
quarter that such Applicable Rate was in effect.  For purposes of clarification, Swing Line
Loans shall not be considered outstanding for purposes of determining the
unused portion of the Aggregate Domestic Revolving Commitments.

 

(b)           Fee Letter.  The Borrower shall pay to BAS and the
Administrative Agent for their own respective accounts fees in the amounts and
at the times specified in the Fee Letter. 
Such fees shall be fully earned when paid and shall be non-refundable
for any reason whatsoever.

 

2.10         Computation of Interest and
Fees; Retroactive Adjustments of Applicable Rate.

 

(a)           All computations of interest
for Base Rate Loans when the Base Rate is determined by Bank of America’s “prime
rate” shall be made on the basis of a year of 365 or 366 days, as the case may
be, and actual days elapsed.  All other
computations of fees and interest shall be made on the basis of a 360-day year
and actual days elapsed (which results in more fees or interest, as applicable,
being paid than if computed on the basis of a 365-day year).  Interest shall accrue on each Loan for the
day on which the Loan is made, and shall not accrue on a Loan, or any portion
thereof, for the day on which the Loan or such portion is paid, provided
that any Loan that is repaid on the same day on which it is made shall, subject
to Section 2.12(a), bear interest for one day.  Each determination by the Administrative
Agent of an interest rate or fee hereunder shall be conclusive and binding for
all purposes, absent manifest error.

 

(b)           If,
as a result of any restatement of or other adjustment to the financial
statements of the Borrower or for any other reason, the Borrower or the Lenders
determine that (i) the Consolidated Leverage Ratio as calculated by the
Borrower as of any applicable date was inaccurate and (ii) a proper
calculation of the Consolidated Leverage Ratio would have resulted in higher
pricing for such period, the Borrower shall immediately and retroactively be
obligated to pay to the Administrative Agent for the account of the applicable
Lenders, promptly on demand by the Administrative Agent (or, after the
occurrence of an actual or deemed entry of an order for relief with respect to
the Borrower under the Bankruptcy Code of the United States, automatically and
without further action by the Administrative Agent, any Lender or the L/C
Issuer), an amount equal to the excess of the amount of interest and fees that
should have been paid for such period over the amount of interest and fees
actually paid for such period.  This
paragraph shall not limit the rights of the Administrative Agent, any Lender or
the L/C Issuer, as the case may be, under Section 2.03(c)(iii), 2.03(i) or
2.08(b) or under Article IX.  The 

 

46

 

Borrower’s obligations under this paragraph shall
survive the termination of the Commitments of all of the Lenders and the
repayment of all other Obligations hereunder.

 

2.11         Evidence of Debt.

 

(a)           The Credit Extensions made
by each Lender shall be evidenced by one or more accounts or records maintained
by such Lender and by the Administrative Agent in the ordinary course of
business.  The accounts or records maintained
by the Administrative Agent and each Lender shall be conclusive absent manifest
error of the amount of the Credit Extensions made by the Lenders to the
Borrower and the interest and payments thereon. 
Any failure to so record or any error in doing so shall not, however,
limit or otherwise affect the obligation of the Borrower hereunder to pay any
amount owing with respect to the Obligations. 
In the event of any conflict between the accounts and records maintained
by any Lender and the accounts and records of the Administrative Agent in
respect of such matters, the accounts and records of the Administrative Agent
shall control in the absence of manifest error. 
Upon the request of any Lender made through the Administrative Agent,
the Borrower shall execute and deliver to such Lender (through the
Administrative Agent) a promissory note, which shall evidence such Lender’s
Loans in addition to such accounts or records. 
Each such promissory note shall (i) in the case of Domestic
Revolving Loans, be in the form of Exhibit 2.11(a)(i) (a “Domestic
Revolving Note”), (ii)  in the case of Euro Revolving Loans, be in the
form of Exhibit 2.11(a)(ii) (a “Euro Revolving Note”)
and  (ii) in the case of Swing Line
Loans, be in the form of Exhibit 2.11(a)(iii) (a “Swing
Line Note”).  Each Lender may attach
schedules to its Note and endorse thereon the date, Type (if applicable),
amount and maturity of its Loans and payments with respect thereto.

 

(b)           In addition to the accounts
and records referred to in subsection (a), each Domestic Lender and the Administrative
Agent shall maintain in accordance with its usual practice accounts or records
evidencing the purchases and sales by such Domestic Lender of participations in
Letters of Credit and Swing Line Loans. 
In the event of any conflict between the accounts and records maintained
by the Administrative Agent and the accounts and records of any Lender in
respect of such matters, the accounts and records of the Administrative Agent
shall control in the absence of manifest error.

 

2.12         Payments Generally; Administrative
Agent’s Clawback.

 

(a)           General.  All payments to be made by the Borrower shall
be made without condition or deduction for any counterclaim, defense,
recoupment or setoff.  Except as
otherwise expressly provided herein and except with respect to principal of and
interest on Loans denominated in Dollars, all payments by the Borrower
hereunder shall be made to the Administrative Agent, for the account of the
respective Domestic Lenders to which such payment is owed, at the applicable
Administrative Agent’s Office in Dollars and in Same Day Funds not later than
2:00 p.m. on the date specified herein. 
Except as otherwise expressly provided herein, all payments by the
Borrower hereunder with respect to principal and interest on Loans denominated
in the Alternative Currency shall be made to the Administrative Agent, for the
account of the respective Euro Lenders to which such payment is owed, at the
applicable Administrative Agent’s Office in the Alternative Currency and in
Same Day Funds not later than the Applicable Time specified by the
Administrative Agent on the dates specified herein.  Without limiting the generality of the
foregoing, the Administrative Agent may require that any payments due under
this Agreement be made in the United States. 
If, for any reason, the Borrower is prohibited by any Law from making
any required payment hereunder in the Alternative Currency, the Borrower shall
make such payment in Dollars in the Dollar Equivalent of the Alternative
Currency payment amount.  The Administrative
Agent will promptly distribute to each Lender its Applicable Percentage (or
other applicable share as provided herein) of such payment in like funds as
received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative
Agent (i) after 2:00 p.m., in the case of payments in Dollars, or
(ii) after the Applicable Time specified by the Administrative Agent in
the case of payments in the 

 

47

 

Alternative
Currency, shall in each case be deemed received on the next succeeding Business
Day and any applicable interest or fee shall continue to accrue.  If any payment to be made by the Borrower
shall come due on a day other than a Business Day, payment shall be made on the
next following Business Day, and such extension of time shall be reflected in
computing interest or fees, as the case may be.

 

(b)          (i)  Funding by Lenders; Presumption by
Administrative Agent.  Unless the
Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing of Eurocurrency Rate Loans (or, in the case of
any Borrowing of Base Rate Loans, prior to 12:00 noon on the date of such
Borrowing) that such Lender will not make available to the Administrative Agent
such Lender’s share of such Borrowing, the Administrative Agent may assume that
such Lender has made such share available on such date in accordance with Section 2.02
(or, in the case of any Borrowing of Base Rate Loans, that such Lender has made
such share available in accordance with and at the time required by Section 2.02)
and may, in reliance upon such assumption, make available to the Borrower a
corresponding amount.  In such event, if
a Lender has not in fact made its share of the applicable Borrowing available
to the Administrative Agent, then the applicable Lender and the Borrower
severally agree to pay to the Administrative Agent forthwith on demand such
corresponding amount in immediately available funds with interest thereon, for
each day from and including the date such amount is made available to the
Borrower to but excluding the date of payment to the Administrative Agent, at (A) in
the case of a payment to be made by such Lender, the Overnight Rate and (B) in
the case of a payment to be made by the Borrower, the interest rate applicable
to Base Rate Loans.  If the Borrower and
such Lender shall pay such interest to the Administrative Agent for the same or
an overlapping period, the Administrative Agent shall promptly remit to the
Borrower the amount of such interest paid by the Borrower for such period.  If such Lender pays its share of the
applicable Borrowing to the Administrative Agent, then the amount so paid shall
constitute such Lender’s Loan included in such Borrowing.  Any payment by the Borrower shall be without
prejudice to any claim the Borrower may have against a Lender that shall have
failed to make such payment to the Administrative Agent.

 

(ii)           Payments by
Borrower; Presumptions by Administrative Agent.  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 or the L/C Issuer
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 Lenders or the L/C Issuer, as the case may be, the amount due.  In such event, if the Borrower has not in
fact made such payment, then each of the Lenders or the L/C Issuer, as the case
may be, severally agrees to repay to the Administrative Agent forthwith on
demand the amount so distributed to such Lender or the L/C Issuer, in
immediately available funds 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 Overnight Rate.

 

A notice of the Administrative Agent to any Lender or the Borrower with
respect to any amount owing under this subsection (b) shall be conclusive,
absent manifest error.

 

(c)           Failure to Satisfy Conditions Precedent.  If any Lender makes available to the
Administrative Agent funds for any Loan to be made by such Lender as provided
in the foregoing provisions of this Article II, and such funds are
not made available to the Borrower by the Administrative Agent because the
conditions to the applicable Credit Extension set forth in Article V
are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from
such Lender) to such Lender, without interest.

 

48

 

(d)           Obligations of Lenders Several.  The obligations of the Lenders hereunder to
make Loans, to fund participations in Letters of Credit and Swing Line Loans
and to make payments pursuant to Section 11.04(c) are several
and not joint.  The failure of any Lender
to make any Loan, to fund any such participation or to make any payment under Section 11.04(c) on
any date required hereunder shall not relieve any other Lender of its
corresponding obligation to do so on such date, and no Lender shall be
responsible for the failure of any other Lender to so make its Loan, to
purchase its participation or to make its payment under Section 11.04(c).

 

(e)           Funding Source.  Nothing herein shall be deemed to obligate
any Lender to obtain the funds for any Loan in any particular place or manner
or to constitute a representation by any Lender that it has obtained or will
obtain the funds for any Loan in any particular place or manner.

 

2.13         Sharing of Payments by
Lenders.

 

If
any Lender shall, by exercising any right of setoff or counterclaim or
otherwise, obtain payment in respect of any principal of or interest on any of
the Loans made by it, or the participations in L/C Obligations or in Swing Line
Loans held by it resulting in such Lender’s receiving payment of a proportion
of the aggregate amount of such Loans or participations and accrued interest
thereon greater than its pro  rata share thereof as provided
herein, then the Lender receiving such greater proportion shall (a) notify
the Administrative Agent of such fact, and (b) purchase (for cash at face
value) participations in the Loans and subparticipations in L/C Obligations and
Swing Line Loans of the other Lenders, if such Lender is a Domestic Lender, or
make such other adjustments among the group of Domestic Lenders or Euro
Lenders, as applicable, or as shall be equitable, so that the benefit of all
such payments shall be shared by the Domestic Lenders or Euro Lenders, as
applicable, ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Loans and other amounts owing them, provided
that:

 

(i)            if any such
participations or subparticipations are purchased and all or any portion of the
payment giving rise thereto is recovered, such participations or
subparticipations shall be rescinded and the purchase price restored to the
extent of such recovery, without interest; and

 

(ii)           the provisions
of this Section shall not be construed to apply to (x) any payment
made by the Borrower pursuant to and in accordance with the express terms of
this Agreement or (y) any payment obtained by a Lender as consideration
for the assignment of or sale of a participation in any of its Loans or
subparticipations in L/C Obligations or Swing Line Loans to any assignee or
participant, other than to the Borrower or any Subsidiary thereof (as to which
the provisions of this Section shall apply).

 

Each
Loan Party consents to the foregoing and agrees, to the extent it may
effectively do so under applicable law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against such
Loan Party rights of setoff and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of such Loan Party in the
amount of such participation.

 

49

 

ARTICLE III

 

TAXES, YIELD PROTECTION AND
ILLEGALITY

 

3.01         Taxes.

 

(a)           Payments Free of Taxes.  Any and all payments by or on account of any
obligation of the Loan Parties hereunder or under any other Loan Document shall
be made free and clear of and without reduction or withholding for any
Indemnified Taxes or Other Taxes, provided that if any Loan Party shall
be required by applicable law to deduct any Indemnified Taxes (including any
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) the
Administrative Agent, any Lender or the L/C Issuer, as the case may be,
receives an amount equal to the sum it would have received had no such
deductions been made, (ii) such Loan Party shall make such deductions and (iii) such
Loan Party shall timely pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.

 

(b)           Payment of Other Taxes by the Loan Parties.  Without limiting the provisions of subsection
(a) above, the Loan Parties shall timely pay any Other Taxes to the
relevant Governmental Authority in accordance with applicable law.

 

(c)           Indemnification by the Loan Parties.  The Loan Parties shall indemnify the
Administrative Agent, each Lender and the L/C Issuer, within 10 days after
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) paid by the Administrative Agent, such
Lender or the L/C Issuer, as the case may be, and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, 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 the L/C Issuer
(with a copy to the Administrative Agent), or by the Administrative Agent on
its own behalf or on behalf of a Lender or the L/C Issuer, shall be conclusive
absent manifest error.

 

(d)           Evidence of Payments.  As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by any Loan Party 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)           Status of Lenders.  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 resident for tax purposes, or any treaty
to which such jurisdiction is a party, with respect to payments hereunder or
under any other Loan Document 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 or the Administrative Agent, 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 of withholding.  In addition, any Lender, if requested by the
Borrower or the Administrative Agent, shall deliver such other documentation
prescribed by applicable law or reasonably requested by the Borrower or the
Administrative Agent as will enable the Borrower or the Administrative Agent to
determine whether or not such Lender is subject to backup withholding or
information reporting requirements.

 

50

 

Without
limiting the generality of the foregoing, in the event that the Borrower is
resident for tax purposes in the United States, any Foreign Lender shall
deliver to the Borrower and the Administrative Agent (in such number of copies
as shall be requested by the recipient) on or prior to the date on which such Foreign
Lender becomes a Lender under this Agreement (and from time to time thereafter
upon the request of the Borrower or the Administrative Agent, but only if such
Foreign Lender is legally entitled to do so), whichever of the following is
applicable:

 

(i)            duly completed copies of Internal Revenue Service Form W-8BEN
claiming eligibility for benefits of an income tax treaty to which the United
States is a party,

 

(ii)           duly completed copies of Internal Revenue Service Form W-8ECI,

 

(iii)          in the case of a Foreign Lender claiming the
benefits of the exemption for portfolio interest under section 881(c) of
the Internal Revenue Code, (x) a certificate to the effect that such
Foreign Lender is not (A) a “bank” within the meaning of section 881(c)(3)(A) of
the Internal Revenue Code, (B) a “10 percent shareholder” of the Borrower
within the meaning of section 881(c)(3)(B) of the Internal Revenue Code,
or (C) a “controlled foreign corporation” described in section 881(c)(3)(C) of
the Internal Revenue Code and (y) duly completed copies of  Internal Revenue Service Form W-8BEN, or

 

(iv)          any other form prescribed by applicable law as a
basis for claiming exemption from or a reduction in United States Federal
withholding tax duly completed together with such supplementary documentation
as may be prescribed by applicable law to permit the Borrower to determine the
withholding or deduction required to be made.

 

(f)            Each Lender, (i) that is a “U.S. Person” as
defined in Section 7701(a)(30) of the Internal Revenue Code and (ii) whose
name does not include “Incorporated,” “Inc.,” “Corporation,” “Corp.,” “P.C.,” “insurance
company” or “assurance company” shall deliver to the Borrower and the
Administrative Agent (in such number of copies as shall be requested by the
recipient) duly completed and executed copies of Internal Revenue Service Form W-9.  Such forms shall be delivered by such Lender
on or prior to the date on which such Lender becomes a Lender under this
Agreement.  In addition, each such Lender
shall deliver such forms a reasonable period of time before any form previously
delivered by such Lender becomes invalid or obsolete.

 

(g)           Treatment of Certain Refunds.  If the Administrative Agent, any Lender or
the L/C Issuer determines, in its sole discretion, that it has received a
refund of any Taxes or Other Taxes as to which it has been indemnified by any
Loan Party or with respect to which any Loan Party has paid additional amounts
pursuant to this Section, it shall pay to such Loan Party an amount equal to
such refund (but only to the extent of indemnity payments made, or additional
amounts paid, by such Loan Party under this Section with respect to the
Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket
expenses of the Administrative Agent, such Lender or the L/C Issuer, as the
case may be, and without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund), provided that each
Loan Party, upon the request of the Administrative Agent, such Lender or the
L/C Issuer, agrees to repay the amount paid over to such Loan Party (plus
any penalties, interest or other charges imposed by the relevant Governmental
Authority) to the Administrative Agent, such Lender or the L/C Issuer in the
event the Administrative Agent, such Lender or the L/C Issuer is required to
repay such refund to such Governmental Authority.  This subsection shall not be construed to
require the Administrative Agent, any Lender or the L/C Issuer to make available
its tax returns (or any other information relating to its taxes that it deems
confidential) to the Borrower or any other Person.

 

51

 

 

3.02         Illegality.

 

If
any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for any Lender or its
applicable Lending Office to make, maintain or fund Eurocurrency Rate Loans
(whether denominated in Dollars or the Alternative Currency), or to determine
or charge interest rates based upon the Eurocurrency Rate, or any Governmental
Authority has imposed material restrictions on the authority of such Lender to
purchase or sell, or to take deposits of, Dollars or the Alternative Currency
in the applicable interbank market, then, in the London interbank market, then,
on notice thereof by such Lender to the Borrower through the Administrative
Agent, any obligation of such Lender to make or continue Eurocurrency Rate
Loans in the affected currency or currencies or, in the case of Eurocurrency
Rate Loans in Dollars, to convert Base Rate Loans to Eurocurrency Rate Loans
shall be suspended until such Lender notifies the Administrative Agent and the Borrower
that the circumstances giving rise to such determination no longer exist.  Upon receipt of such notice, the Borrower
shall, upon demand from such Lender (with a copy to the Administrative Agent),
prepay or, if applicable and such Loans are denominated in Dollars, convert all
such Eurocurrency Rate Loans of such Lender to Base Rate Loans, either on the
last day of the Interest Period therefor, if such Lender may lawfully continue
to maintain such Eurocurrency Rate Loans to such day, or immediately, if such
Lender may not lawfully continue to maintain such Eurocurrency Rate Loans.  Upon any such prepayment or conversion, the
Borrower shall also pay accrued interest on the amount so prepaid or converted.

 

3.03         Inability to Determine Rates.

 

If
the Required Lenders determine that for any reason in connection with any
request for a Eurocurrency Rate Loan or a conversion to or continuation thereof
that (a) deposits (whether in Dollars or the Alternative Currency) are not
being offered to banks in the applicable offshore interbank market for such
currency for the applicable amount and Interest Period of such Eurocurrency
Rate Loan, (b)  adequate and reasonable means do not exist for determining
the Eurocurrency Base Rate for any requested Interest Period with respect to a
proposed Eurocurrency Rate Loan (whether denominated in Dollars or the
Alternative Currency), or (c) the Eurocurrency Base Rate for any requested
Interest Period with respect to a proposed Eurocurrency Rate Loan does not
adequately and fairly reflect the cost to such Lenders of funding such
Eurocurrency Rate Loan, the Administrative Agent will promptly so notify the
Borrower and each Lender.  Thereafter,
the obligation of the Lenders to make or maintain Eurocurrency Rate Loans in
the affected currency or currencies shall be suspended until the Administrative
Agent (upon the instruction of the Required Lenders) revokes such notice.  Upon receipt of such notice, the Borrower may
revoke any pending request for a Borrowing of, conversion to or continuation of
Eurocurrency Rate Loans in the affected currency or currencies or, failing
that, will be deemed to have converted such request into a request for a
Borrowing of Base Rate Loans in the amount specified therein.

 

3.04         Increased Costs.

 

(a)           Increased Costs Generally.  If any Change in Law shall:

 

(i)            impose, modify or deem applicable any reserve,
special deposit, compulsory loan, insurance charge or similar requirement
against assets of, deposits with or for the account of, or credit extended or participated
in by, any Lender (except (A) any reserve requirement reflected in the
Eurocurrency Rate and (B) the requirements of the Bank of England and the
Financial Services Authority or the European Central Bank reflected in the
Mandatory Cost, other than as set forth below) or the L/C Issuer;

 

(ii)           subject any Lender or the L/C Issuer to any tax of
any kind whatsoever with respect to this Agreement, any Letter of Credit, any
participation in a Letter of Credit or any 

 

52

 

Eurocurrency
Rate Loan made by it, or change the basis of taxation of payments to such
Lender or the L/C Issuer in respect thereof (except for Indemnified Taxes or
Other Taxes covered by Section 3.01 and the imposition of, or any
change in the rate of, any Excluded Tax payable by such Lender or the L/C
Issuer);

 

(iii)          result in the failure of the Mandatory Cost, as
calculated hereunder, to represent the cost to any Lender of complying with the
requirements of the Bank of England and/or the Financial Services Authority or
the European Central Bank in relation to its making, funding or maintaining
Eurocurrency Rate Loans; or

 

(iv)          impose on any Lender or any  L/C Issuer or the London interbank market any
other condition, cost or expense affecting this Agreement or Eurocurrency Rate
Loans made by such Lender or any Letter of Credit or participation therein;

 

and
the result of any of the foregoing shall be to increase the cost to such Lender
of making or maintaining any Eurocurrency Rate Loan (or of maintaining its
obligation to make any such Loan), or to increase the cost to such Lender or
the L/C Issuer of participating in, issuing or maintaining any Letter of Credit
(or of maintaining its obligation to participate in or to issue any Letter of
Credit), or to reduce the amount of any sum received or receivable by such
Lender or the L/C Issuer hereunder (whether of principal, interest or any other
amount) then, upon request of such Lender or the L/C Issuer, the Borrower will
pay to such Lender or the L/C Issuer, as the case may be, such additional
amount or amounts as will compensate such Lender or the L/C Issuer, as the case
may be, for such additional costs incurred or reduction suffered.

 

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

 

(c)           Certificates for Reimbursement.  A certificate of a Lender or the L/C Issuer setting
forth the amount or amounts necessary to compensate such Lender or the L/C
Issuer or its holding company, as the case may be, as specified in subsection (a) or
(b) of this Section and delivered to the Borrower shall be conclusive
absent manifest error.  The Borrower
shall pay such Lender or the L/C Issuer, as the case may be, the amount shown
as due on any such certificate within 10 days after receipt thereof.

 

(d)           Delay in Requests.  Failure or delay on the part of any Lender or
the L/C Issuer to demand compensation pursuant to the foregoing provisions of
this Section shall not constitute a waiver of such Lender’s or the L/C
Issuer’s right to demand such compensation, provided that the Borrower
shall not be required to compensate a Lender or the L/C Issuer pursuant to the
foregoing provisions of this Section for any increased costs incurred or
reductions suffered more than nine months prior to the date that such Lender or
the L/C Issuer, as the case may be, notifies the Borrower of the Change in Law
giving rise to such increased costs or reductions and of such Lender’s or the
L/C Issuer’s intention to claim 

 

53

 

compensation
therefor (except that, if the Change in Law giving rise to such increased costs
or reductions is retroactive, then the nine-month period referred to above
shall be extended to include the period of retroactive effect thereof).

 

3.05         Compensation for Losses.

 

Upon
demand of any Lender (with a copy to the Administrative Agent) from time to
time, the Borrower shall promptly compensate such Lender for and hold such
Lender harmless from any loss, cost or expense incurred by it as a result of:

 

(a)           any continuation, conversion, payment or prepayment
of any Loan other than a Base Rate Loan on a day other than the last day of the
Interest Period for such Loan (whether voluntary, mandatory, automatic, by
reason of acceleration, or otherwise);

 

(b)           any failure by the Borrower (for a reason other than
the failure of such Lender to make a Loan) to prepay, borrow, continue or
convert any Loan other than a Base Rate Loan on the date or in the amount
notified by the Borrower;

 

(c)           any failure by the Borrower to make payment of any
Loan or drawing under any Letter of Credit (or interest due thereon) denominated
in the Alternative Currency on its scheduled due date or any payment thereof in
a different currency; or

 

(d)           any assignment of a Eurocurrency Rate Loan on a day
other than the last day of the Interest Period therefor as a result of a
request by the Borrower pursuant to Section 11.13;

 

excluding
any loss of anticipated profits and including any loss or expense arising from
the liquidation or reemployment of funds obtained by it to maintain such Loan
or from fees payable to terminate the deposits from which such funds were
obtained.  The Borrower shall also pay
any customary administrative fees charged by such Lender in connection with the
foregoing.

 

For
purposes of calculating amounts payable by the Borrower to the Lenders under
this Section 3.05, each Lender shall be deemed to have funded each
Eurocurrency Rate Loan made by it at the Eurocurrency Base Rate used in
determining the Eurocurrency Rate for such Loan by a matching deposit or other
borrowing in the London interbank eurocurrency market for a comparable amount
and for a comparable period, whether or not such Eurocurrency Rate Loan was in
fact so funded.

 

3.06         Mitigation Obligations;
Replacement of Lenders.

 

(a)           Designation of a Different Lending Office.  If any Lender requests compensation under Section 3.04,
or 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 3.01,
or if any Lender gives a notice pursuant to Section 3.02, 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 3.01 or 3.04,
as the case may be, in the future, or eliminate the need for the notice
pursuant to Section 3.02, as applicable, and (ii) in each
case, 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.

 

54

 

(b)           Replacement of Lenders.  If any Lender requests compensation under Section 3.04,
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 3.01,
the Borrower may replace such Lender in accordance with Section 11.13.

 

3.07         Survival.

 

All
of the Borrower’s obligations under this Article III shall survive
termination of the Aggregate Revolving Commitments and repayment of all other
Obligations hereunder.

 

ARTICLE IV

 

GUARANTY

 

4.01         The Guaranty.

 

Each
of the Guarantors hereby jointly and severally guarantees to each Lender, each
Affiliate of a Lender that enters into a Swap Contract or a Treasury Management
Agreement with a Loan Party, and the Administrative Agent as hereinafter
provided, as primary obligor and not as surety, the prompt payment of the
Obligations in full when due (whether at stated maturity, as a mandatory
prepayment, by acceleration, as a mandatory cash collateralization or
otherwise) strictly in accordance with the terms thereof.  The Guarantors hereby further agree that if
any of the Obligations are not paid in full when due (whether at stated
maturity, as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise), the Guarantors will, jointly and severally,
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 Obligations,
the same will be promptly paid in full when due (whether at extended maturity,
as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise) in accordance with the terms of such extension
or renewal.

 

Notwithstanding
any provision to the contrary contained herein or in any other of the Loan
Documents, Swap Contracts or Treasury Management Agreements, the obligations of
each Guarantor under this Agreement and the other Loan Documents shall be
limited to an aggregate amount equal to the largest amount that would not
render such obligations subject to avoidance under the Debtor Relief Laws or
any comparable provisions of any applicable state law.

 

4.02         Obligations Unconditional.

 

The
obligations of the Guarantors under Section 4.01 are joint and
several, absolute and unconditional, irrespective of the value, genuineness,
validity, regularity or enforceability of any of the Loan Documents, Swap
Contracts or Treasury Management Agreements, or any other agreement or
instrument referred to therein, or any substitution, release, impairment or
exchange of any other guarantee of or security for any of the Obligations, and,
to the fullest extent permitted by applicable law, irrespective of any other
circumstance whatsoever which might otherwise constitute a legal or equitable
discharge or defense of a surety or guarantor, it being the intent of this Section 4.02
that the obligations of the Guarantors hereunder shall be absolute and
unconditional under any and all circumstances. 
Each Guarantor agrees that such Guarantor shall have no right of
subrogation, indemnity, reimbursement or contribution against the Borrower or
any other Guarantor for amounts paid under this Article IV until
such time as the Obligations have been paid in full and the Commitments have
expired or terminated.  Without limiting
the generality of the foregoing, it is agreed that, to the fullest extent
permitted by law, the occurrence of any one or more of the following shall not
alter or impair the liability of any Guarantor hereunder, which shall remain
absolute and unconditional as described above:

 

55

 

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

 

(b)           any of the acts mentioned in any of the provisions
of any of the Loan Documents, any Swap Contract or Treasury Management
Agreement between any Loan Party and any Lender, or any Affiliate of a Lender,
or any other agreement or instrument referred to in the Loan Documents, such
Swap Contracts or such Treasury Management Agreements shall be done or omitted;

 

(c)           the maturity of any of the Obligations shall be accelerated,
or any of the Obligations shall be modified, supplemented or amended in any
respect, or any right under any of the Loan Documents, any Swap Contract or
Treasury Management Agreement between any Loan Party and any Lender, or any
Affiliate of a Lender, or any other agreement or instrument referred to in the
Loan Documents, such Swap Contracts or such Treasury Management Agreements
shall be waived or any other guarantee of any of the Obligations or any
security therefor shall be released, impaired or exchanged in whole or in part
or otherwise dealt with;

 

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

 

(e)           any of the Obligations shall be determined to be
void or voidable (including, without limitation, for the benefit of any
creditor of any Guarantor) or shall be subordinated to the claims of any Person
(including, without limitation, any creditor of any Guarantor).

 

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

 

4.03         Reinstatement.

 

The
obligations of the Guarantors under this Article IV shall be
automatically reinstated if and to the extent that for any reason any payment
by or on behalf of any Person in respect of the Obligations is rescinded or
must be otherwise restored by any holder of any of the Obligations, whether as
a result of any proceedings in bankruptcy or reorganization or otherwise, and
each Guarantor agrees that it will indemnify the Administrative Agent and each
Lender on demand for all reasonable costs and expenses (including, without
limitation, the fees, charges and disbursements of counsel) incurred by the
Administrative Agent or such 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.

 

4.04         Certain Additional Waivers.

 

Each
Guarantor agrees that such Guarantor shall have no right of recourse to
security for the Obligations, except through the exercise of rights of
subrogation pursuant to Section 4.02 and through the exercise of
rights of contribution pursuant to Section 4.06.

 

56

 

4.05         Remedies.

 

The Guarantors agree that, to the fullest extent permitted by law, as
between the Guarantors, on the one hand, and the Administrative Agent and the
Lenders, on the other hand, the Obligations may be declared to be forthwith due
and payable as provided in Section 9.01 (and shall be deemed to
have become automatically due and payable in the circumstances provided in said
Section 9.02) for purposes of Section 4.01
notwithstanding any stay, injunction or other prohibition preventing such
declaration (or preventing the Obligations from becoming automatically due and
payable) as against any other Person and that, in the event of such declaration
(or the Obligations being deemed to have become automatically due and payable),
the Obligations (whether or not due and payable by any other Person) shall
forthwith become due and payable by the Guarantors for purposes of Section 4.01.  The Guarantors acknowledge and agree that
their obligations hereunder are secured in accordance with the terms of the
Collateral Documents and that the Lenders may exercise their remedies
thereunder in accordance with the terms thereof.

 

4.06         Rights of Contribution.

 

The
Guarantors agree among themselves that, in connection with payments made
hereunder, each Guarantor shall have contribution rights against the other
Guarantors as permitted under applicable law. 
Such contribution rights shall be subordinate and subject in right of
payment to the obligations of such Guarantors under the Loan Documents and no
Guarantor shall exercise such rights of contribution until all Obligations have
been paid in full and the Commitments have terminated.

 

4.07         Guarantee of Payment;
Continuing Guarantee.

 

The
guarantee in this Article IV is a guaranty of payment and not of
collection, is a continuing guarantee, and shall apply to all Obligations
whenever arising.

 

ARTICLE V

 

CONDITIONS PRECEDENT TO
CREDIT EXTENSIONS

 

5.01         Conditions of Initial Credit
Extension.

 

The
obligation of the L/C Issuer and each Lender to make its initial Credit
Extension hereunder is subject to satisfaction of the following conditions
precedent:

 

(a)           Loan Documents.  Receipt by the Administrative Agent of
executed counterparts of this Agreement and the other Loan Documents, each
properly executed by a Responsible Officer of the signing Loan Party and, in
the case of this Agreement, by each Lender.

 

(b)           Opinions of Counsel. Receipt by the
Administrative Agent of favorable opinions of legal counsel to the Loan
Parties, addressed to the Administrative Agent and each Lender, dated as of the
Closing Date, and in form and substance satisfactory to the Administrative
Agent.

 

(c)           Financial Statements.  The Administrative Agent shall have received:

 

(i)            the Audited Financial
Statements; and

 

(ii)           unaudited consolidated
financial statements of the Borrower and its Subsidiaries for the fiscal
quarter ended March 31, 2007, including balance sheets and 

 

57

 

statements
of income or operations, shareholders’ equity and cash flows (the “Interim
Financial Statements”).

 

(d)           No Material Adverse Change.  There shall not have occurred since December 31,
2006, a material adverse change in, or a material adverse effect on, the
operations, business, assets, financial condition or results of operations of
the Borrower and its Subsidiaries, taken as a whole.

 

(e)           Litigation.  There shall not exist any action, suit,
investigation or proceeding pending or, to the knowledge of the Borrower,
threatened in any court or before an arbitrator or Governmental Authority that
could reasonably be expected to have a Material Adverse Effect.

 

(f)            Organization Documents, Resolutions, Etc.  Receipt by the
Administrative Agent of the following, each of which shall be originals or
facsimiles (followed promptly by originals), in form and substance satisfactory
to the Administrative Agent and its legal counsel:

 

(i)            copies of the Organization
Documents of each Loan Party certified to be true and complete as of a recent
date by the appropriate Governmental Authority of the state or other
jurisdiction of its incorporation or organization, where applicable, and
certified by a secretary or assistant secretary of such Loan Party to be true
and correct as of the Closing Date;

 

(ii)           such certificates of
resolutions or other action, incumbency certificates and/or other certificates
of Responsible Officers of each Loan Party as the Administrative Agent may
require evidencing the identity, authority and capacity of each Responsible
Officer thereof authorized to act as a Responsible Officer in connection with
this Agreement and the other Loan Documents to which such Loan Party is a party;
and

 

(iii)          such documents and
certifications as the Administrative Agent may reasonably require to evidence
that each Loan Party is duly organized or formed, and is validly existing, in
good standing and qualified to engage in business in its state of organization
or formation.

 

(g)           Perfection and Priority of Liens.  Receipt by the Administrative Agent of the
following:

 

(i)            searches of Uniform
Commercial Code filings in the jurisdiction of formation of each Loan Party or
where a filing would need to be made in order to perfect the Administrative
Agent’s security interest in the Collateral, copies of the financing statements
on file in such jurisdictions and evidence that no Liens exist other than
Permitted Liens;

 

(ii)           UCC financing statements for
each appropriate jurisdiction as is necessary, in the Administrative Agent’s
sole discretion, to perfect the Administrative Agent’s security interest in the
Collateral;

 

(iii)          all certificates evidencing
any certificated Equity Interests pledged to the Administrative Agent pursuant
to the Security Agreement, together with duly executed in blank and undated
stock powers attached thereto;

 

58

 

(iv)          searches of ownership of,
and Liens on, intellectual property of each Loan Party in the appropriate
governmental offices; and

 

(v)           duly executed notices of
grant of security interest in the form required by the Security Agreement as
are necessary, in the Administrative Agent’s sole discretion, to perfect the
Administrative Agent’s security interest in the intellectual property of the
Loan Parties.

 

(vi)          fully executed and notarized
Mortgages encumbering the fee interest of any Loan Party in each of the real
properties designated as a Mortgaged Property on Schedule 6.20(a);

 

(vii)         maps or plats of an as-built
survey of the sites of the Mortgaged Properties (other than the Pennsylvania
Property) certified to the Administrative Agent and the title insurance company
issuing the policies referred to in Section 5.01(g)(ix) in a manner
reasonably satisfactory to each of the Administrative Agent and such
title insurance company, dated a date reasonably satisfactory to each of
the Administrative Agent and such title insurance company by an
independent professional licensed land surveyor, which maps or plats and the
surveys on which they are based shall be sufficient to delete any standard
printed survey exception contained in the applicable title policy and be made
in accordance with the Minimum Standard Detail Requirements for Land Title Surveys
jointly established and adopted by the American Land Title Association and
the National Society of Professional Surveyors in 2005 with items 1, 2, 3, 4,
6, 7a, 7b1, 8, 9, 10, 11a, 13, 16, 17 and 18 from Table A thereof completed (it
being understood that delivery of the as-built survey delivered in connection
with the Existing Credit Agreement, together with the title company’s omission
of the standard printed survey exception from the Administrative Agent’s title
insurance policy with respect to the Mortgaged Property for which such survey
applies, shall satisfy the requirements of this subclause (viii);

 

(viii)        ALTA mortgagee title
insurance policies issued by a title insurance company reasonably acceptable to
the Administrative Agent with respect to each Mortgaged Property, assuring the
Administrative Agent that each of the Mortgages creates a valid and enforceable
first priority mortgage lien on the applicable Mortgaged Property, free and
clear of all defects and encumbrances except Permitted Liens, which title
insurance policies shall otherwise be in form and substance reasonably
satisfactory to the Administrative Agent and shall include such endorsements as
are reasonably requested by the Administrative Agent; and

 

(ix)           evidence as to (A) whether
any Mortgaged Property is in an area designated by the Federal Emergency
Management Agency as having special flood or mud slide hazards (a “Flood Hazard
Property”) and (B) if any Mortgaged Property is a Flood Hazard Property,
(1) whether the community in which such Mortgaged Property is located is
participating in the National Flood Insurance Program, (2) the applicable
Loan Party’s written acknowledgment of receipt of written notification from the
Administrative Agent (a) as to the fact that such Mortgaged Property is a
Flood Hazard Property and (b) as to whether the community in which each
such Flood Hazard Property is located is participating in the National Flood
Insurance Program and (3) copies of insurance policies or certificates of insurance
of the Borrower and its Subsidiaries evidencing flood insurance satisfactory to
the Administrative Agent and naming the Administrative Agent as sole loss payee
on behalf of the Lenders.

 

59

 

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

 

(i)            Closing Certificate.  Receipt by the Administrative Agent of a
certificate signed by a Responsible Officer of the Borrower certifying that (i) the
conditions specified in Sections 5.01(d) and (e) and Sections
5.02(a) and (b) have been satisfied and (ii) the
Borrower and its Subsidiaries (after giving effect to the Transactions) are
Solvent on a consolidated basis.

 

(j)            Termination of Existing Credit Agreement.  Receipt by the Administrative Agent of
evidence that the Existing Credit Agreement concurrently with the Closing Date
is being paid in full and terminated and all Liens securing obligations under
the Existing Credit Agreement concurrently with the Closing Date are being
released.

 

(k)           Fees.  Receipt by the Administrative Agent and the
Lenders of any fees required to be paid on or before the Closing Date.

 

(l)            Attorney Costs.  Unless waived by the Administrative Agent,
the Borrower shall have paid all fees, charges and disbursements of counsel to
the Administrative Agent to the extent invoiced prior to or on the Closing
Date, plus such additional amounts of such fees, charges and disbursements
as shall constitute its reasonable estimate of such fees, charges and
disbursements incurred or to be incurred by it through the closing proceedings
(provided that such estimate shall not thereafter preclude a final settling of
accounts between the Borrower and the Administrative Agent).

 

(m)          Other.  Receipt by the Administrative Agent and the
Lenders of such other documents, instruments, agreements and information as
reasonably requested by the Administrative Agent or any Lender, including, but
not limited to, information regarding litigation, tax, accounting, labor,
insurance, pension liabilities (actual or contingent), real estate leases,
material contracts, debt agreements, property ownership, environmental matters,
contingent liabilities and management of the Borrower and its Subsidiaries;
such information may include, if requested by the Administrative Agent, asset
appraisal reports and written audits of accounts receivable, inventory,
payables, controls and systems.

 

Without
limiting the generality of the provisions of the last paragraph of Section 11.04,
for purposes of determining compliance with the conditions specified in this Section 5.01,
each Lender that has signed this Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its
objection thereto.

 

5.02         Conditions to all Credit
Extensions.

 

The
obligation of each Lender to honor any Request for Credit Extension is subject
to the following conditions precedent:

 

(a)           The representations and warranties of the Borrower
and each other Loan Party contained in Article VI or any other Loan
Document, or which are contained in any document 

 

60

 

furnished
at any time under or in connection herewith or therewith, shall be true and
correct on and as of the date of such Credit Extension, except to the extent
that such representations and warranties specifically refer to an earlier date,
in which case they shall be true and correct as of such earlier date, and
except that for purposes of this Section 5.02, the representations
and warranties contained in subsections (a) and (b) of Section 6.05
shall be deemed to refer to the most recent statements furnished pursuant to
clauses (a) and (b), respectively, of Section 7.04.

 

(b)           No Default shall exist, or would result from such
proposed Credit Extension or from the application of the proceeds thereof.

 

(c)           The Administrative Agent and, if applicable, the L/C
Issuer and/or the Swing Line Lender shall have received a Request for Credit
Extension in accordance with the requirements hereof.

 

(d)           In the case of a Credit Extension to be denominated
in the Alternative Currency, there shall not have occurred any change in
national or international financial, political or economic conditions or
currency exchange rates or exchange controls which in the reasonable opinion of
the Administrative Agent, the Required Euro Lenders (in the case of any Loans
to be denominated in the Alternative Currency) or the L/C Issuer (in the case
of any Letter of Credit to be denominated in the Alternative Currency) would
make it impracticable for such Credit Extension to be denominated in the
Alternative Currency.

 

Each Request for Credit Extension submitted by the Borrower shall be
deemed to be a representation and warranty that the conditions specified in Sections
5.02(a) and (b) have been satisfied on and as of the date
of the applicable Credit Extension.

 

ARTICLE VI

 

REPRESENTATIONS AND
WARRANTIES

 

The
Loan Parties represent and warrant to the Administrative Agent, the L/C Issuer
and each of the Lenders that:

 

6.01         Organization; Power.

 

The
Borrower and each of the Subsidiaries (a) is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization except, solely with respect to certain Foreign Subsidiaries, as
set forth on Schedule 6.01, (b) has all requisite power and
authority to own its property and assets and to carry on its business as now
conducted and as proposed to be conducted, (c) is qualified to do business
in, and is in good standing in, every jurisdiction where such qualification is
required, except where the failure so to qualify could not reasonably be
expected to result in a Material Adverse Effect, and (d) has the power and
authority to execute, deliver and perform its obligations under each of the
Loan Documents and each other agreement or instrument contemplated hereby or
thereby to which it is or will be a party and, in the case of the Borrower, to
borrow hereunder.

 

6.02         Authorization.

 

The
Transactions (a) have been duly authorized by all requisite corporate and,
if required, stockholder action and (b) will not (i) violate
(A) any provision of law, statute, rule or regulation, or of the
certificate or articles of incorporation or other constitutive documents or
by-laws of the Borrower or any 

 

61

 

Subsidiary,
(B) any order of any Governmental Authority or (C) any provision of
any indenture, material agreement or other material instrument to which the
Borrower or any Subsidiary is a party or by which any of them or any of their
property is or may be bound, (ii) except as set forth on Schedule 6.02,
be in conflict with, result in a breach of or constitute (alone or with notice
or lapse of time or both) a default under, or give rise to any right to
accelerate or to require the prepayment, repurchase or redemption of any
obligation under any such indenture, material agreement or other material
instrument or (iii) result in the creation or imposition of any Lien upon
or with respect to any property or assets now owned or hereafter acquired by
the Borrower or any Subsidiary (other than any Lien created hereunder or under
the Collateral Documents).

 

6.03         Enforceability.

 

This
Agreement has been duly executed and delivered by the Borrower and constitutes,
and each other Loan Document when executed and delivered by each Loan Party
party thereto will constitute, a legal, valid and binding obligation of such
Loan Party enforceable against such Loan Party in accordance with its terms.

 

6.04         Governmental Approvals.

 

Except
as set forth on Schedule 6.04, no action,
consent or approval of, registration or filing with or any other action by any
Governmental Authority is or will be required in connection with the
Transactions, except for (a) the filing of Uniform Commercial Code
financing statements and filings with the United States Patent and Trademark
Office and the United States Copyright Office, (b) the recordation of any
Mortgages, (c) such as have been made or obtained and are in full force
and effect or which are not material to the consummation of the Transactions
and (d) those approvals, consents, exemptions, authorizations or other
actions, notices or filings, the failure of which to obtain or make could not
reasonably be expected to have a Material Adverse Effect.

 

6.05         Financial Statements.

 

(a)           The Borrower has heretofore furnished to the Lenders
(i) the consolidated balance sheet and related statements of operations,
stockholders’ equity and cash flows of the Borrower and its consolidated
subsidiaries as of and for the fiscal year ended December 31, 2006,
audited by and accompanied by the unqualified opinion of Ernst & Young
LLP, independent public accountants and (ii) the unaudited consolidated
balance sheets and related statements of operations, stockholders’ equity and
cash flows of the Borrower and its consolidated subsidiaries as of the fiscal
quarter ending March 31, 2007.  Such
financial statements present fairly, in all material respects, the financial
condition and results of operations and cash flows of the Borrower and its
consolidated subsidiaries as of such dates and for such periods.  Except as set forth on Schedule 6.05(a),
such balance sheets and the notes thereto disclose all material liabilities,
direct or contingent, of the Borrower and its consolidated subsidiaries as of
the dates thereof.  Such financial
statements were prepared in accordance with GAAP applied on a consistent basis,
except that the unaudited financial statements are subject to normal year-end
adjustments and do not contain notes thereto.

 

(b)           The Borrower has heretofore
delivered to the Lenders the unaudited pro forma consolidated balance sheet and
related statements of operations, stockholders’ equity and cash flows of the
Borrower and its consolidated subsidiaries, as well as pro forma levels of
Consolidated EBITDA, for the Borrower’s fiscal year ended December 31,
2006 and as of and for the three months ending March 31, 2007, prepared
giving effect to the Transactions as if they had occurred on such date.  Such pro forma financial statements have been
prepared in good faith by the Borrower, based on the assumptions used to 

 

62

 

prepare
the pro forma financial information contained in the Confidential Information
Memorandum (which assumptions are believed by the Borrower on the date hereof
to be reasonable), are based on the best information available to the Borrower
as of the date of delivery thereof, accurately reflect, in all material
respects, all adjustments required to be made to give effect to the
Transactions and present fairly, in all material respects, on a pro forma basis
the estimated consolidated financial position of the Borrower and its
consolidated Subsidiaries as of such date and for such periods, assuming that
the Transactions had actually occurred at such date or at the beginning of such
period, as the case may be.  The
forecasts of financial performance of the Borrower and its Subsidiaries
heretofore furnished to the Lenders have been prepared in good faith by the
Borrower and based on assumptions believed by the Borrower to be reasonable (it
being understood that such forecasts as to future events are not to be reviewed
as facts and that actual results may differ materially from such forecasts).

 

6.06         No Material Adverse Change.

 

No
event, change or condition has occurred that has had, or could reasonably be
expected to have, a material adverse effect on the business, operations,
assets, liabilities, financial condition or results of operations of the
Borrower and the Subsidiaries, taken as a whole, since December 31, 2006.

 

6.07         Title to Properties;
Possession Under Leases.

 

(a)           The Borrower and each of the Subsidiaries has good
and marketable title to, or valid leasehold interests in, all its material
properties and material assets, except for minor defects in title that do not
materially interfere with its ability to conduct its business or to utilize
such assets for their intended purposes and Liens permitted by Section 8.02
and except where the failure to have such title could not reasonably be
expected to have, individually or in the aggregate, a Material Adverse
Effect.  All such material properties and
assets are free and clear of Liens, other than Liens expressly permitted by Section 8.02.

 

(b)           The use by the Borrower and each of the Subsidiaries
of such Collateral and all such rights with respect to the foregoing do not
infringe on the rights of any Person other than such infringement which could
not, individually or in the aggregate, reasonably be expected to result in a
Material Adverse Effect.  No claim has
been made and remains outstanding that the Borrower’s or any Subsidiaries’ use
of any Collateral does or may violate the rights of any third party that could,
individually or in the aggregate, reasonably be expected to result in a
Material Adverse Effect.

 

63

 

 

(c)           The Borrower and each of the
Subsidiaries has complied with all material obligations due and payable or
required to be performed under all material leases to which it is a party and
all such material leases are in full force and effect.  The Borrower and each of the Subsidiaries
enjoys peaceful and undisturbed possession under all such leases, except where
the failure to so enjoy could not reasonably be expected to have a Material
Adverse Effect.

 

(d)           The Borrower and each of the
Subsidiaries owns, or is licensed to use, all Patents, patent applications,
Trademarks, trade names, servicemarks, Copyrights, technology, trade secrets,
proprietary information, domain names, know-how and processes necessary for the
conduct of its business as currently conducted (the “Intellectual Property”),
except for those the failure to own or license which, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.  No claim has been asserted in
writing and is pending by any person challenging or questioning the use of any
such Intellectual Property or the validity or effectiveness of any such
Intellectual Property, nor does the Borrower or any Subsidiary know of any
valid basis for any such claim, which claim is reasonably likely to have a
Material Adverse Effect.  The use of such
Intellectual Property by the Borrower and each Subsidiary does not infringe the
rights of any person, except for such claims and infringements that, individually
or in the aggregate, could not reasonably be expected to result in a Material
Adverse Effect.

 

(e)           Except pursuant to licenses
and other user agreements entered into by the Borrower or any Subsidiary in the
ordinary course of business, on and as of the date hereof (i) the Borrower
and each Subsidiary owns and possesses the right to use, and has done nothing
to authorize or enable any other person to use, any of its Copyrights, Patents
or Trademarks and (ii) all Trademarks, Copyrights, Patents, service marks,
trade names, patent rights, franchises, licenses and other intellectual
property rights either registered or pending registration with the United
States Copyright Office or the United States Patent and Trademark Office and
owned by each Loan Party as of the Closing Date are set forth on Schedule 6.07
hereto and are valid and in full force and effect, in each case, except for any
failure which could not, individually or in the aggregate, be reasonably likely
to result in a Material Adverse Effect.

 

(f)            To the Borrower’s and each
Subsidiary’s knowledge, on and as of the date hereof, (i) there is no
violation by others of any right of the Borrower or such Subsidiary with
respect to any of its Copyrights, Patents or Trademarks, respectively, pledged
by it under the name of the Borrower or such Subsidiary, as the case may be,
(ii) the Borrower or such Subsidiary is not infringing upon any Copyright,
Patent or Trademark of any other person other than, in the case of clauses (i) and
(ii), such violation or infringement that, individually or in the aggregate,
could not reasonably be expected to have a Material Adverse Effect, and
(iii) no proceedings have been instituted or are pending against the
Borrower or such Subsidiary or threatened, and no claim against such the
Borrower or such Subsidiary has been received by the Borrower or such
Subsidiary, as the case may be, alleging any such violation, except any
violations which could not, individually or in the aggregate, be reasonably
likely to result in a Material Adverse Effect.

 

6.08         Subsidiaries.

 

Schedule 6.08 sets forth as
of the Closing Date a list of (a) all Subsidiaries and the percentage
ownership interest of the Borrower and any Subsidiary therein, (b) the
exact legal name and jurisdiction of organization or formation, as applicable,
of each Loan Party, (c) the chief executive office of each Loan Party and (d) the
federal taxpayer identification number and organizational identification number
of each Loan Party.  The shares of Equity
Interests so indicated on Schedule 6.08 are owned by the Borrower,
directly or indirectly, free and clear of all Liens (other than Liens created
under the Collateral Documents).

 

64

 

6.09         Litigation; Compliance with
Laws.

 

(a)           There are not any actions, suits or proceedings at
law or in equity or by or before any Governmental Authority now pending or, to
the knowledge of the Borrower, threatened against or affecting the Borrower,
any Subsidiary or any business, property or rights of any such person
(i) that involve any Loan Document or the Transactions or (ii) 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.

 

(b)           None of the Borrower or any
of the Subsidiaries or any of their respective material properties or material
assets is in violation of, nor will the continued operation of their material
properties and material assets as currently conducted violate, any law, rule or
regulation (including any zoning, building, Environmental Law, ordinance, code
or approval or any building permits), or is in default with respect to any
judgment, writ, injunction, decree or order of any Governmental Authority,
where such violation or default could reasonably be expected to result in a
Material Adverse Effect.

 

6.10         Agreements.

 

(a)           None of the Borrower or any of the Subsidiaries is a
party to any agreement or instrument or subject to any corporate restriction
that has resulted or could reasonably be expected to result in a Material
Adverse Effect.

 

(b)           None of the Borrower or any
of the Subsidiaries is in default in any manner under any provision of any
indenture or other agreement or instrument evidencing Indebtedness, or any
other agreement or instrument to which it is a party or by which it or any of
its properties or assets are or may be bound, where such default could
reasonably be expected to result in a Material Adverse Effect.

 

6.11         Federal Reserve Regulations.

 

(a)           None of the Borrower or any of the Subsidiaries is
engaged principally, or as one of its important activities, in the business of
extending credit for the purpose of buying or carrying Margin Stock.

 

(b)           No part of the proceeds of
any Loan or any Letter of Credit will be used, whether directly or indirectly,
and whether immediately, incidentally or ultimately, for any purpose that
entails a violation of, or that is inconsistent with, the provisions of the
Regulations of the FRB, including Regulation T, U or X.

 

6.12         Investment Company Act.

 

None
of the Borrower or any Subsidiary is an “investment company” as defined in, or
subject to regulation under, the Investment Company Act of 1940.

 

6.13         Use of Proceeds.

 

The
Borrower will use the proceeds of the Loans and will request the issuance of
Letters of Credit only for the purposes specified in Section 7.08.

 

65

 

6.14         Tax Returns.

 

Each
of the Borrower and each of the Subsidiaries has filed or caused to be filed
all Federal and all material state, local and foreign tax returns or materials
required to have been filed by it and has paid or caused to be paid all
material taxes due and payable by it and all assessments received by it, except
taxes that are being contested in good faith by appropriate proceedings and for
which the Borrower or such Subsidiary, as applicable, shall have set aside on
its books adequate reserves and except for taxes the nonpayment of which could
not reasonably be expected to have a Material Adverse Effect.

 

6.15         No Material Misstatements.

 

None
of (a) the Confidential Information Memorandum or (b) any other
information, report, financial statement, exhibit or schedule furnished by or
on behalf of the Borrower to the Administrative Agent or any Lender in
connection with the negotiation of any Loan Document or included therein or
delivered pursuant thereto contained, which, in the case of clauses (a) and
(b), when taken as a whole and together with the representations and warranties
contained in this Agreement, contains or will contain any material misstatement
of fact or omitted, omits or will omit to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they
were, are or will be made, not misleading; provided, that to the extent
any such information, report, financial statement, exhibit or schedule was
based upon or constitutes a forecast or projection, the Borrower represents
only that it acted in good faith and utilized reasonable assumptions and due
care in the preparation of such information, report, financial statement,
exhibit or schedule and it is understood that actual results may differ from
forecasts and projections.

 

6.16         Employee Benefit Plans.

 

With
respect to any Plan, each of the Borrower and each of its ERISA Affiliates is
in compliance in all material respects with the applicable provisions of ERISA
and the Internal Revenue Code and the regulations and published interpretations
thereunder.  No ERISA Event has occurred
or is reasonably expected to occur that, when taken together with all other
such ERISA Events, could reasonably be expected to result in a Material Adverse
Effect.  Neither the Borrower nor any
Subsidiary has (a) failed to comply with any requirement of applicable law
relating to any employee pension benefit plan primarily for the benefit of
employees of the Borrower or any Subsidiary residing outside the United States
that is not subject to ERISA or the Internal 
Revenue Code or (b) incurred any other liability with respect to
such plan (other than liabilities incurred in the ordinary course of business)
, except for any such noncompliance or incurrence which could not reasonably be
expected to result in a Material Adverse Effect.

 

6.17         Environmental Matters.

 

Except
as set forth in environmental reports provided to the Administrative Agent and
identified on Schedule 6.17 or 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 Borrower or any of the Subsidiaries
(i) has failed to comply with any Environmental Law or to obtain, maintain
or comply with any Environmental Permit, (ii) has become subject to any
pending or to the knowledge of the Borrower, threatened, Environmental
Liability, (iii) has received notice of any claim with respect to any
Environmental Liability or (iv) knows of any basis for any Environmental
Liability.

 

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6.18         Insurance.

 

Schedule 6.18 sets forth a
true, complete and correct description, including the carriers, policy numbers,
expiration dates, types, amounts and deductibles, of all insurance maintained
by the Borrower or by the Borrower for its Subsidiaries as of the date hereof.  As of each such date, such insurance is in
full force and effect and all premiums have been duly paid if due.  The Borrower and its Subsidiaries have
insurance in such amounts and covering such risks and liabilities as are, when
considered in its entirety, in the good faith judgment of the Borrower prudent
in the ordinary course of business of the Borrower and its Subsidiaries.

 

6.19         Collateral Documents.

 

(a)           The Security Agreement, upon execution and delivery
thereof by the parties thereto, will create in favor of the Administrative
Agent, for the ratable benefit of the holders of the Obligations, a legal,
valid and enforceable security interest in the Collateral (as defined in the
Security Agreement) and the proceeds thereof and (i) when the Pledged
Collateral (as defined in the Security Agreement) is delivered to the
Administrative Agent, the Security Agreement shall constitute a fully perfected
first priority Lien on, and security interest in, all right, title and interest
of the Loan Parties in such Pledged Collateral, in each case prior and superior
in right to any other person, and (ii) when financing statements in
appropriate form are filed in the offices specified on Schedule 6.19(a),
the Lien created under the Collateral Documents will constitute a fully perfected
Lien on, and security interest in, all right, title and interest of the Loan
Parties in all such Collateral as to which a security interest may be perfected
by such a filing (other than Intellectual Property, as defined in the Security
Agreement), in each case prior and superior in right to any other person, other
than with respect to Liens expressly permitted by Section 8.02.

 

(b)           Upon the recordation of the
notices of grant of security interest in the form required by the Security
Agreement with the United States Patent and Trademark Office and the United
States Copyright Office, together with the financing statements in appropriate
form filed in the offices specified on Schedule 6.19(a), the Security
Agreement shall constitute a fully perfected Lien on, and security interest in,
all right, title and interest of the Loan Parties in the Intellectual Property
(as defined in the Security Agreement) in which a security interest may be
perfected by filing in the United States and its territories and possessions,
in each case prior and superior in right to any other person (it being
understood that subsequent recordings in the United States Patent and Trademark
Office and the United States Copyright Office may be necessary to perfect a
Lien on registered Trademarks, trademark applications, Patents, patent
applications and Copyrights acquired by the Loan Parties after the date
hereof).

 

(c)           The Mortgages are effective
to create in favor of the Administrative Agent, for the ratable benefit of the
holders of the Obligations, a legal, valid and enforceable Lien on all of the
Loan Parties’ right, title and interest in and to the Mortgaged Property
thereunder and the proceeds thereof, and when the Mortgages are recorded in the
offices specified on Schedule 6.19(c), the Mortgages shall
constitute a fully perfected Lien on, and security interest in, all right,
title and interest of the Loan Parties in such Mortgaged Property and the
proceeds thereof, in each case prior and superior in right to any other person,
other than with respect to the rights of persons pursuant to Liens expressly
permitted by Section 8.02.

 

6.20         Location of Real Property
and Leased Premises.

 

Schedule 6.20(a) lists
completely and correctly as of the Closing Date all domestic real property owned
by the Borrower and the Subsidiaries and the addresses thereof.  The Borrower and the 

 

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Subsidiaries,
as the case may be, as of the Closing Date, own in fee all the real property
set forth on Schedule 6.20(a). 
Schedule 6.20(b) lists completely and correctly as of
the Closing Date all material domestic real property leased by the Borrower and
the Subsidiaries and the addresses thereof. 
The Borrower and the Subsidiaries, as the case may be, as of the Closing
Date, have valid leasehold interests in all the real property set forth on Schedule 6.20(b).

 

6.21         Labor Matters.

 

As
of the date hereof, there are no strikes, lockouts or slowdowns against the
Borrower or any Subsidiary pending or, to the knowledge of the Borrower,
threatened.  The consummation of the
Transactions will not give rise to any right of termination or right of
renegotiation on the part of any union under any collective bargaining
agreement to which the Borrower or any Subsidiary is bound.  Except to the extent any of the following,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect, (a) the hours worked by and payments made to
employees of the Borrower and the Subsidiaries have not been in violation in
any material respect of the Fair Labor Standards Act or any other applicable
Federal, state, local or foreign law dealing with such matters and (b) all
payments due from the Borrower or any Subsidiary, or for which any claim may be
made against the Borrower or any Subsidiary, on account of wages and employee
health and welfare insurance and other benefits, have been paid or accrued as a
liability on the books of the Borrower or such Subsidiary.

 

6.22         Solvency.

 

Immediately
after the consummation of the Transactions to occur on the Closing Date and
immediately following the making of each Loan and after giving effect to the
application of the proceeds of each Loan, (a) the fair value of the assets
of the Loan Parties taken as a whole, at a fair valuation, will exceed their
debts and liabilities, subordinated, contingent or otherwise; (b) the
present fair saleable value of the property of the Loan Parties taken as a
whole will be greater than the amount that will be required to pay the probable
liability of their debts and other liabilities, subordinated, contingent or
otherwise, as such debts and other liabilities become absolute and matured; (c) the
Loan Parties taken as a whole will be able to pay their debts and liabilities,
subordinated, contingent or otherwise, as such debts and liabilities become
absolute and matured; and (d) the Loan Parties taken as a whole will not
have unreasonably small capital with which to conduct the business in which
they are engaged as such business is now conducted and is proposed to be
conducted following the Closing Date.

 

6.23         Certain Treasury Regulation
Matters.

 

The
Borrower does not intend to treat the Loans and related transactions as being a
“reportable” transaction (within the meaning of Treasury Regulation 1.6011-4).  The Borrower acknowledges that the
Administrative Agent and one or more of the Lenders may treat its Loans as part
of a transaction that is subject to Treasury Regulation Section 301.6112-1
to the extent that the Borrower’s application of the proceeds of the Loans
requires the same and the Administrative Agent and such Lender or Lenders, as
applicable, may, in connection therewith, maintain such lists and other records
as they may determine is required by such Treasury Regulation.

 

6.24         Foreign Assets Control
Regulations, Etc..

 

None of the requesting or
borrowing of the Loans, the requesting or issuance, extension or renewal of any
Letters of Credit or the use of the proceeds of any thereof will violate the
Trading With the Enemy Act (50 U.S.C. Sec 1 et seq., as amended) (the “Trading
With the Enemy Act”) or any of the foreign assets control regulations of
the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as
amended) (the “Foreign Assets Control Regulations”) or any enabling legislation
or executive order 

 

68

 

relating thereto (which for
the avoidance of doubt shall include, but shall not be limited to (a) Executive
Order 13224 of September 21, 2001 Blocking Property and Prohibiting
Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism
(66 Fed. Reg. 49079 (2001)) (the “Executive Order”) and (b) the
Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56)).  To the knowledge of the Borrower,
neither the Borrower nor any of its Subsidiaries (a) is a “blocked person”
as described in the Executive Order, the Trading With the Enemy Act or the
Foreign Assets Control Regulations or (b) engages transactions with any
such “blocked person” blocked by such order, law or regulation.

 

ARTICLE VII

 

AFFIRMATIVE COVENANTS

 

The
Loan Parties covenant and agree with each Lender that so long as this Agreement
shall remain in effect and until the Commitments have been terminated and the
principal of and interest on each Loan, all Fees and all other expenses or
amounts payable under any Loan Document shall have been paid in full and all
Letters of Credit have been canceled or have expired and all amounts drawn
thereunder have been reimbursed in full, unless the Required Lenders shall
otherwise consent in writing, the Loan Parties will, and will cause each of the
Subsidiaries to:

 

7.01         Existence; Business and
Properties.

 

(a)           Do or cause to be done all things necessary to
preserve, renew and keep in full force and effect its legal existence, except
as otherwise expressly permitted under Section 8.05.

 

(b)           Do or cause to be done all
things necessary to obtain, preserve, renew, extend and keep in full force and
effect all rights, licenses, permits, franchises, authorizations, Patents,
Copyrights, Trademarks and trade names used in or relating to the conduct of
its business, except where the failure to do so could not reasonably be
expected to have a Material Adverse Effect; maintain and operate such business
in substantially the manner in which it is presently conducted and operated,
including any reasonable extension, development or expansion thereof; comply
with all applicable laws, rules, regulations and decrees and orders of any
Governmental Authority, whether now in effect or hereafter enacted, except
where the failure to do so could not reasonably be expected to have a Material
Adverse Effect; and at all times maintain and preserve all property material to
the conduct of such business and keep such property in good repair, working
order and condition and from time to time make, or cause to be made, all
needful and proper repairs, renewals, additions, improvements and replacements
thereto necessary in order that the business carried on in connection therewith
may be properly conducted at all times, except where the failure to do so could
not reasonably be expected to have a Material Adverse Effect.

 

7.02         Insurance.

 

(a)           Keep its insurable properties adequately insured at
all times by financially sound and reputable insurers; maintain such other
insurance, to such extent and against such risks, including fire and other
risks insured against by extended coverage, as is customary with companies in
the same or similar businesses operating in the same or similar locations,
including public liability insurance against claims for personal injury or
death or property damage occurring upon, in, about or in connection with the
use of any properties owned, occupied or controlled by it; and maintain such
other insurance as may be required by law.

 

69

 

(b)           Cause all such policies covering any Collateral to
be endorsed or otherwise amended to include a customary lender’s loss payable
endorsement, in form and substance satisfactory to the Administrative Agent,
which endorsement shall provide that, from and after the Closing Date, if the
insurance carrier shall have received written notice from the Administrative
Agent of the occurrence of an Event of Default, the insurance carrier shall pay
all proceeds otherwise payable to the Borrower or the Loan Parties under such
policies directly to the Administrative Agent; cause all such policies to
provide that neither the Borrower, the Administrative Agent nor any other party
shall be a coinsurer thereunder and to contain a “Replacement Cost Endorsement”,
without any deduction for depreciation, and such other provisions as the
Administrative Agent may reasonably require from time to time to protect their
interests; deliver insurance certificates evidencing all such policies to the
Administrative Agent; upon the occurrence of an Event of Default, deliver
original or certified copies of all such policies to the Administrative Agent
upon its request; cause each such policy to provide that it shall not be
canceled, modified or not renewed (i) by reason of nonpayment of premium
upon not less than 10 days’ prior written notice thereof by the insurer to the
Administrative Agent (giving the Administrative Agent the right to cure
defaults in the payment of premiums) or (ii) for any other reason upon not
less than 30 days’ prior written notice thereof by the insurer to the
Administrative Agent, deliver to the Administrative Agent, prior to the cancellation,
modification or nonrenewal of any such policy of insurance, evidence of a
renewal or replacement policy (or other evidence of renewal of a policy
previously delivered to the Administrative Agent) together with evidence
satisfactory to the Administrative Agent of payment of the premium therefor.

 

(c)           If at any time the area in which any of the Premises
(as defined in the Mortgages) are located is designated (i) a “flood
hazard area” in any Flood Insurance Rate Map published by the Federal Emergency
Management Agency (or any successor agency), obtain flood insurance in an
amount not less than $5,000,000, on a per occurrence basis, for the Premises
located in a “flood hazard area” and that is otherwise, if applicable, the
minimum coverage necessary to comply with the National Flood Insurance Program
as set forth in the Flood Disaster Protection Act of 1973, as it may be amended
from time to time, or (ii) a “Zone 1” area, obtain earthquake insurance in
such total amount as is prudent in the good faith judgment of the Borrower for
Premises located in a “Zone 1” area.

 

(d)           With respect to any Mortgaged Property, carry and
maintain comprehensive general liability insurance including a “broad form”
commercial general liability endorsement and coverage on an occurrence basis
against claims made for personal injury (including bodily injury, death and
property damage) and umbrella liability insurance against any and all claims,
in no event for a combined single limit of less than $15,000,000, naming the
Administrative Agent as an additional insured, on forms satisfactory to the
Administrative Agent.

 

(e)           Notify the Administrative Agent immediately whenever
any separate insurance concurrent in form or contributing in the event of loss
with that required to be maintained under this Section 7.02 is
taken out by the Borrower; and promptly deliver to the Administrative Agent a
duplicate original copy of such policy or policies.

 

(f)            In the event there occurs any loss, damage to or
destruction of any tangible property or assets of any Loan Party or any part
thereof, in excess of $2,000,000, cause such Loan Party to promptly give
written notice thereof to the Administrative Agent generally describing the
nature and extent of such loss, damage or destruction.  Subsequent to any loss, damage to or
destruction of the tangible property or assets of any Loan Party or any part
thereof, Borrower shall, or shall cause such other Loan Party to, 

 

70

 

whether
or not the insurance proceeds, if any, received on account of such damage or
destruction shall be sufficient for that purpose, at such Loan Party’s cost and
expense, promptly repair or replace such property or assets so lost, damaged or
destroyed or purchase other productive assets used or useful in the business of
the Borrower or its Subsidiaries; provided, however, that such
Loan Party need not repair or replace such property or assets so lost, damaged
or destroyed to the extent the failure to make such repair or replacement is not
necessary in the good faith judgment of the Borrower for the proper conduct of
the business of such Loan Party in the ordinary course.

 

(g)           Authorize the Administrative
Agent, as the attorney-in-fact of each of the Loan Parties and for the benefit
of the Lenders, upon the occurrence and during the continuance of an Event of
Default, without the consent of the applicable Loan Party, (i) to adjust
and compromise proceeds payable under such insurance policies, (ii) to
collect, receive and give receipts for such insurance proceeds in the name of
such Loan Party, the Administrative Agent and the Lenders and (iii) to
endorse such Loan Party’s name upon any instrument in payment thereof

 

(h)           In the event a Loan Party
shall receive any insurance proceeds as a result of any loss, damage or
destruction, or condemnation proceeds, in each case in a net amount in excess
of $2,000,000, the Borrower shall, or shall cause such other Loan Party to,
promptly pay over such proceeds to the Administrative Agent as cash collateral
for the Obligations.  The Administrative
Agent agrees to release such proceeds to such Loan Party for replacement or
restoration of the portion of the property or assets of such Loan Party lost,
damaged or destroyed or condemned for the purchase of other assets used or
useful in the business of the Borrower or its Subsidiaries if (A) within
one year (or if binding contracts for the repair, replacement or purchase have
been entered into within such period, within the term of such contracts) from
the date of such loss, damage, destruction or condemnation, the Administrative
Agent has received written application for such release from such Loan Party
together with evidence reasonably satisfactory to it that the Borrower will use
such proceeds to purchase productive assets used or useful in the business of
the Borrower or its Subsidiaries and (B) on the date of such release no
Default or Event of Default exists.  All
insurance and condemnation proceeds received by a Loan Party shall be subject
to the security interest of the Administrative Agent under the Loan Documents.

 

7.03         Taxes.

 

Pay
all taxes, assessments and governmental charges or levies imposed upon it or
upon its income or profits or in respect of its property, before the same shall
become delinquent or in default; provided, however, that such
payment and discharge shall not be required with respect to any such tax,
assessment, charge or levy so long as (a) the validity or amount thereof
shall be contested in good faith by appropriate proceedings and the Borrower
shall have set aside on its books adequate reserves with respect thereto in
accordance with GAAP and such contest operates to suspend collection of the
contested obligation, tax, assessment or charge and enforcement of a Lien and,
in the case of a Mortgaged Property, there is no risk of forfeiture of such
property or (b) the nonpayment thereof could not reasonably be expected to
result in a Material Adverse Effect.

 

7.04         Financial Statements,
Reports, Etc.

 

In
the case of the Borrower, furnish to the Administrative Agent (either
physically or through electronic delivery reasonably acceptable to the
Administrative Agent), which shall furnish to each Lender:

 

(a)               within 90 days after the end of each fiscal
year, its consolidated balance sheet and related statements of income,
stockholders’ equity and cash flows showing the financial condition of the
Borrower and its consolidated Subsidiaries as of the close of such fiscal year
and the results of its 

 

71

 

operations
and the operations of such Subsidiaries during such year, together with
comparative figures for the immediately preceding fiscal year, all audited by
Ernst & Young LLP or other independent public accountants of
recognized national standing and accompanied by an opinion of such accountants
(which shall not be qualified in any material respect) to the effect that such
consolidated financial statements fairly present the financial condition and
results of operations of the Borrower and its consolidated Subsidiaries on a
consolidated basis in accordance with GAAP consistently applied;

 

(b)              within 45 days after the end
of each of the first three fiscal quarters of each fiscal year, its
consolidated balance sheet and related statements of income, stockholders’
equity and cash flows showing the financial condition of the Borrower and its
consolidated Subsidiaries as of the close of such fiscal quarter and the
results of its operations and the operations of such Subsidiaries during such
fiscal quarter and the then elapsed portion of the fiscal year, and comparative
figures for the same periods in the immediately preceding fiscal year, all
certified by one of its Responsible Officers as fairly presenting the financial
condition and results of operations of the Borrower and its consolidated
Subsidiaries on a consolidated basis in accordance with GAAP consistently
applied, subject to normal year-end audit adjustments;

 

(c)               concurrently with any
delivery of financial statements under paragraph (a) or (b) above, a
certificate of the accounting firm (in the case of paragraph (a)) or
Responsible Officer (in the case of paragraph (b)) opining on or certifying
such statements (which certificate, when furnished by an accounting firm, may
be limited to accounting matters and disclaim responsibility for legal
interpretations and which may be provided by a Responsible Officer if
accounting firms generally are not providing such certificates) (a “Compliance
Certificate”) (i) certifying that no Event of Default or Default has
occurred or, if such an Event of Default or Default has occurred, specifying
the nature and extent thereof and any corrective action taken or proposed to be
taken with respect thereto and (ii) setting forth computations in
reasonable detail satisfactory to the Administrative Agent showing the
Consolidated Leverage Ratio and demonstrating compliance with the covenants
contained in Sections 8.06, 8.10, 8.11 and 8.12
and, in the case of a certificate delivered with the financial statements
required by paragraph (a) above, certifying that there has been no change
in the business activities, assets or liabilities of the Borrower, or if there
has been any such change, describing such change in reasonable detail and
certifying that the Borrower is in compliance with Section 8.08;

 

(d)              within 45 days after the
commencement of each fiscal year of the Borrower, a detailed consolidated
budget for such fiscal year (including a projected consolidated balance sheet
and related statements of projected operations and cash flows as of the end of
and for such fiscal year);

 

(e)               promptly after the same
become publicly available, copies of all periodic and other reports, proxy
statements and other materials filed by the Borrower or any Subsidiary with the
SEC, or any Governmental Authority succeeding to any or all of the functions of
the SEC, or with any national securities exchange, or distributed to its
shareholders, as the case may be;

 

(f)               promptly after the receipt
thereof by the Borrower or any Subsidiary, a copy of any “management letter”
received by any such person from its certified public accountants and the
management’s response thereto; and

 

(g)              promptly, from time to time,
such other information regarding the operations, business affairs and financial
condition of the Borrower or any Subsidiary, or compliance with the terms of
any Loan Document, as the Administrative Agent or any Lender may reasonably
request.

 

72

 

 

Documents
required to be delivered pursuant to Section 7.04 (to the extent
any such documents are included in materials otherwise filed with the SEC) may
be delivered electronically and if so delivered, shall be deemed to have been
delivered on the date (i) on which the Borrower posts such documents, or
provides a link thereto on the Borrower’s website on the Internet at the
website address listed on Schedule 11.02; or (ii) on which such
documents are posted on the Borrower’s behalf on an Internet or intranet
website, if any, to which each Lender and the Administrative Agent have access
(whether a commercial, third-party website or whether sponsored by the
Administrative Agent); provided that: (i) the Borrower shall
deliver paper copies of such documents to the Administrative Agent or any
Lender that requests the Borrower to deliver such paper copies until a written
request to cease delivering paper copies is given by the Administrative Agent
or such Lender and (ii) the Borrower shall notify the Administrative Agent
and each Lender (by telecopier or electronic mail) of the posting of any such
documents and provide to the Administrative Agent by electronic mail electronic
versions (i.e., soft copies) of such documents.  Notwithstanding anything contained herein, in
every instance the Borrower shall be required to provide paper copies of the
Compliance Certificates required by Section 7.04(c) to the
Administrative Agent.  Except for such
Compliance Certificates, the Administrative Agent shall have no obligation to
request the delivery or to maintain copies of the documents referred to above,
and in any event shall have no responsibility to monitor compliance by the
Borrower with any such request for delivery, and each Lender shall be solely
responsible for requesting delivery to it or maintaining its copies of such
documents.

 

The Borrower hereby acknowledges that (a) the Administrative Agent
and/or BAS will make available to the Lenders and the L/C Issuer materials
and/or information provided by or on behalf of the Borrower hereunder
(collectively, the “Borrower Materials”) by posting the Borrower Materials on
IntraLinks or another similar electronic system (the “Platform”) and (b) certain
of the Lenders (each, a  “Public
Lender”) may have personnel who do not wish to receive material non-public
information with respect to the Borrower or its Affiliates, or the respective
securities of any of the foregoing, and who may be engaged in investment and
other market-related activities with respect to such Person’s securities.  The Borrower hereby agrees that (w) all
Borrower Materials that are to be made available to Public Lenders shall be
clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that
the word “PUBLIC” shall appear prominently on the first page thereof; (x) by
marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to have
authorized the Administrative Agent, BAS and the Lenders to treat such Borrower
Materials as not containing any material non-public information with respect to
the Borrower or its securities for purposes of United States federal and state
securities laws (provided, however, that to the extent such
Borrower Materials constitute Information, they shall be treated as set forth
in Section 11.07); (y) all Borrower Materials marked “PUBLIC”
are permitted to be made available through a portion of the Platform designated
as “Public Investor;” and (z) the Administrative Agent and BAS shall be
entitled to treat any Borrower Materials that are not marked “PUBLIC” as being
suitable only for posting on a portion of the Platform not marked as “Public
Investor.”

 

7.05                           Litigation and
Other Notices.

 

Furnish
to the Administrative Agent, the L/C Issuer and each Lender prompt (and, in any
event, within 3 Business Days) written notice of the following:

 

(a)                                  any Event of Default or
Default, specifying the nature and extent thereof and the corrective action (if
any) taken or proposed to be taken with respect thereto;

 

(b)                                 the filing or
commencement of, or any threat or notice of intention of any person to file or
commence, any action, suit or proceeding, whether at law or in equity or by or
before any Governmental 

 

73

 

Authority,
against the Borrower or any Affiliate thereof that could reasonably be expected
to result in a Material Adverse Effect;

 

(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
Borrower and its ERISA Affiliates in an aggregate amount exceeding $2,500,000
or result in a Material Adverse Effect; and

 

(d)                                 any development
that has resulted in, or could reasonably be expected to result in, a Material
Adverse Effect.

 

7.06                           Information
Regarding Collateral.

 

(a)                                  Furnish to the
Administrative Agent prompt written notice of any change in (i) any Loan
Party’s legal name, (ii) the jurisdiction of organization or formation of
any Loan Party, (iii) any Loan Party’s identity or corporate structure or (iv) any
Loan Party’s federal taxpayer identification number.  The Borrower agrees not to effect or permit
any change referred to in the preceding sentence unless all filings have been
made under the Uniform Commercial Code or otherwise that are required in order
for the Administrative Agent to continue at all times following such change to
have a valid, legal and perfected security interest in all the Collateral.

 

(b)                                 In the case of
the Borrower, each year, at the time of delivery of the annual financial
statements with respect to the preceding fiscal year pursuant to Section 7.04(a),
deliver to the Administrative Agent a certificate of a Responsible Officer
setting forth the information set forth in Section 7.06(a) or
confirming that there has been no change in such information since the Closing
Date or the date of the most recent certificate delivered pursuant to this Section 7.06.

 

7.07                           Maintaining
Records; Access to Property and Inspections.

 

Keep
proper books of record and account in which full, true and correct entries in
conformity with GAAP and all requirements of Law are made of all dealings and
transactions in relation to its business and activities.  Each Loan Party will, and will cause each of
its subsidiaries to, permit any representatives designated by the Administrative
Agent or any Lender to visit and inspect the financial records and the
properties of the Borrower or any Subsidiary at reasonable times and as often
as reasonably requested and to make extracts from and copies of such financial
records, and permit any representatives designated by the Administrative Agent
or any Lender to discuss the affairs, finances and condition of the Borrower or
any Subsidiary with the officers thereof and independent accountants
therefor.  Except following the
occurrence and during the continuance of any Default, the Borrower shall be
entitled to have a representative present at all such discussions and to obtain
a copy of all written requests for information relating to any Loan Party made
by the Administrative Agent or any Lender to any third party.  Within 120 days after the close of each
fiscal year of the Borrower, at the request of the Administrative Agent or the
Required Lenders, the Borrower will hold a meeting (at a mutually agreeable
location and time or, at the option of the Administrative Agent, by conference
call) with all lenders who choose to attend such meeting at which meeting shall
be reviewed the financial results of the previous fiscal year and the financial
condition of the Borrower and its Subsidiaries for the current fiscal year of
the Borrower.

 

7.08                           Use of Proceeds.

 

Use
the proceeds of the Credit Extensions (a) to refinance certain existing
Indebtedness, (b) for permitted share repurchases and Permitted
Acquisitions and (c) for working capital, capital expenditures 

 

74

 

and
other lawful corporate purposes, provided that in no event shall the
proceeds of the Credit Extensions be used in contravention of any Law or of any
Loan Document.

 

7.09                           Further Assurances.

 

(a)                                  Execute any and all further
documents, financing statements, agreements and instruments, and take all
further action (including (i) filing or recording, as applicable, Uniform
Commercial Code and other financing statements and Mortgages and (ii) if
all or substantially all of the Equity Interests of the Borrower are held or
acquired by a holding company whose sole or primary purpose is holding such
Equity Interests, causing such holding company to guarantee the Obligations, to
pledge its Equity Interests in the Borrower pursuant to the Security Agreement
and to become subject to the representations, warranties, covenants and other
agreements of the Loan Parties hereunder, mutatis
mutandis) that may be required under applicable law, or that the Required
Lenders or the Administrative Agent may reasonably request, in order to
effectuate the transactions contemplated by the Loan Documents and in order to
grant, preserve, protect and perfect the validity and first priority (subject
to Liens permitted under Section 8.02) of the security interests
created or intended to be created by the Collateral Documents.  Unless a Release of Collateral Event has
occurred and is continuing and the Borrower has exercised its rights under Section 10.10,
the Borrower will cause any subsequently acquired or organized Domestic
Subsidiary to become a Loan Party by executing a Joinder Agreement.  Notwithstanding anything to the contrary in
the foregoing sentence, despite the occurrence and continuance of a Release of
Collateral Event, the Borrower will cause (v) the Equity Interests of any
subsequently acquired or organized Domestic Subsidiary, (w) 65% (or such
greater percentage that, due to a change in an applicable Law after the date
hereof, could not reasonably be expected to cause the undistributed earnings of
such First Tier Foreign Subsidiary as determined for United States federal
income tax purposes to be treated as a deemed dividend to such First Tier
Foreign Subsidiary’s United States parent and 100% of the issued and
outstanding Equity Interests not entitled to vote (within the meaning of Treas.
Reg. Section 1.956-2(c)(2)) in each First Tier Foreign Subsidiary and (y) if
the Equity Interests of the Borrower are held or acquired by any holding
company whose sole or primary purpose is holding such Equity Interests, the
Equity Interests of the Borrower, in each case, to be pledged to the
Administrative Agent pursuant to the Security Agreement.  In addition, subject to the last sentence of
this Section 7.09(a), from time to time, the Borrower will, at its
cost and expense, promptly secure the Obligations by pledging or creating, or
causing to be pledged or created, perfected security interests with respect to
such of its assets and properties as the Administrative Agent or the Required
Lenders shall designate (it being understood that it is the intent of the
parties that the Obligations shall be secured by substantially all the assets
of the Borrower and its Subsidiaries including real and other properties
acquired subsequent to the Closing Date (but excluding owned real property with
a value of less than $1,000,000, all leasehold real property (including,
without limitation, the leased manufacturing facility located in Muskegon,
Michigan), and other Excluded Property)). 
Such security interests and Liens will be created under the Collateral
Documents and other security agreements, mortgages, deeds of trust and other
instruments and documents in form and substance satisfactory to the
Administrative Agent, and the Borrower shall deliver or cause to be delivered
to the Lenders all such instruments and documents (including legal opinions,
title insurance policies and lien searches) as the Administrative Agent shall
reasonably request to evidence compliance with this Section 7.09.  The Borrower agrees to provide such evidence
as the Administrative Agent shall reasonably request as to the perfection and
priority status of each such security interest and Lien.  In furtherance of the foregoing, the Borrower
will give prompt notice to the Administrative Agent of the acquisition by it or
any of the Domestic Subsidiaries of any real property (or any interest in real
property) having a value in excess of $1,000,000.  The actions required under this Section 7.09
shall be taken within 60 days (or such later time as may be acceptable to the
Administrative Agent) after the event giving rise to the requirement to take
such action.  Notwithstanding the
foregoing, (x) the Administrative Agent in its discretion may determine
not to take a security interest in those assets as to which the Administrative
Agent shall determine, in its reasonable discretion, that the 

 

75

 

cost
of obtaining such Lien (including any mortgage, stamp, intangibles or other tax)
are excessive in relation to the benefit to the Lenders of the security
afforded thereby and (y) Liens required to be granted pursuant to this Section 7.09
shall be subject to exceptions and limitations consistent with those set forth
in the Security Documents as in effect on the Closing Date (to the extent
appropriate in the applicable jurisdiction) and no action need be taken to
perfect any security interest in vehicles or any deposit account or securities
account (each as defined in the Uniform Commercial Code) other than the filing
of a financing statement under the Uniform Commercial Code; and

 

(b)                                 Should the Borrower fail to
maintain the Requisite Ratings, within thirty (30) days of notice thereof from
either the Required Lenders or the Administrative Agent, the Borrower shall
cause the security interests in all real and personal property of the Loan
Parties to be re-granted in accordance with the requirements and conditions of Section 7.09(a) (it
being understood and agreed that such re-granted security interests will have a
lien priority at least equal to the lien priority existing as of the time of
the Release of Collateral Event).

 

7.10                           Certain
Treasury Regulation Matters.

 

In
the event the Borrower determines to take any action inconsistent with its
intention as set forth in the first sentence of Section 6.23, it will
promptly notify the Administrative Agent thereof.

 

7.11                           Environmental
Laws.

 

Except,
in each case, as would not, individually or in the aggregate, have a Material
Adverse Effect:

 

(a)                                  Comply in all
material respects with, and use reasonable efforts to ensure compliance in all
material respects by all contractors, tenants and subtenants, if any, with, all
applicable Environmental Laws, and obtain and comply in all material respects
with and maintain, and use reasonable efforts to ensure that all contractors,
tenants and subtenants obtain and comply in all material respects with and
maintain, any and all Environmental Permits required of them by any applicable
Environmental Laws.  For purposes of this
Section 7.11(a), noncompliance with the foregoing shall be deemed
not to constitute a breach of this covenant, provided, that upon
learning of any actual or suspected noncompliance, Borrower shall promptly
undertake reasonable efforts to achieve compliance.

 

(b)                                 Conduct and complete in all
material respects all investigations, studies, sampling and testing, and all
remedial, removal and other actions required to be undertaken by any Group
Member under Environmental Laws and promptly comply with all orders and
directives applicable to any Group Member of all Governmental Authorities
regarding Environmental Laws; provided, however, that this
covenant shall be deemed not violated if the relevant Group Member promptly
challenges in good faith any such order or directive in a manner consistent
with all applicable Environmental Laws and other requirements of Law and
pursues such challenge or challenges diligently.

 

(c)                                  Generate, use, treat, store,
release, dispose of, and otherwise manage Hazardous Materials in a manner that
would not reasonably be expected to result in a material Environmental
Liability to any Group Member or to materially affect any real property owned
or leased by any of them; and take reasonable efforts to prevent any other
person from generating, using, treating, storing, releasing, disposing of, or
otherwise managing Hazardous Materials in a manner that could reasonably be
expected to result in a material Environmental Liability to, or materially
affect any real property owned or operated by, any Group Member.  For purposes of this Section 7.11(c),
noncompliance with the foregoing shall be deemed not to constitute a breach of
this covenant, provided, that, upon learning of any actual or 

 

76

 

suspected
noncompliance, the Borrower shall promptly undertake reasonable efforts to
remove such Hazardous Materials, if required by applicable Environmental Law,
or otherwise remediate them, if required by applicable Environmental Law, in a
manner consistent with applicable Environmental Law.

 

(d)                                 If required by applicable
law, promptly take all commercially reasonable actions necessary to address any
material Environmental Liability.

 

(e)                                  Deliver written notice to
the Administrative Agent as soon as practicable following receipt of all
environmental audits, investigations, analyses and reports of any kind or
character, and all written communications, with respect to any Environmental
Liability that, individually or in the aggregate, could reasonably be expected
to result in a Material Adverse Effect, and, upon the request of the
Administrative Agent, promptly deliver copies to the Administrative Agent of
such environmental audits, investigations, analyses, reports and written
communications.

 

7.12                           Post-Closing
Obligations.

 

(a)                                  Deliver the as-built survey
of the site of the Pennsylvania Property within 30  days
of the Closing Date, together with the title company’s issuance of an
endorsement omitting the survey exception to the Administrative Agent’s title
insurance policy with respect to the Pennsylvania Property; and

 

(b)                                 deliver or cause to be
delivered within 60 days of the Closing Date (or such later date as determined
by the Administrative Agent), (i) the certificates representing the
pledged Equity Interests of Knoll Europe, and (ii) in form and substance
satisfactory to the Administrative Agent, (A) such additional security
documents as may be necessary, in the reasonable opinion of the Administrative
Agent, to cause the applicable Equity Interests (as provided in Section 7.09)
of Knoll Europe to be subject to first priority, perfected Liens in favor of
the Administrative Agent under applicable Law, and (B) such other
documentation as the Administrative Agent may reasonably request in connection
with the Administrative Agent’s Lien on the Equity Interests of Knoll Europe,
including without limitation a favorable opinion of counsel.

 

ARTICLE VIII

 

NEGATIVE COVENANTS

 

The
Loan Parties covenant and agree with each Lender that, so long as this Agreement
shall remain in effect and until the Commitments have been terminated and the
principal of and interest on each Loan, all Fees and all other expenses or
amounts payable under any Loan Document have been paid in full and all Letters
of Credit have been cancelled or have expired and all amounts drawn thereunder
have been reimbursed in full, unless the Required Lenders shall otherwise
consent in writing, the Loan Parties will not, nor will they cause or permit
any of the Subsidiaries to:

 

8.01                           Indebtedness.

 

Incur,
create, assume or permit to exist any Indebtedness, except:

 

(a)                                  Indebtedness
existing on the Closing Date and set forth in Schedule 8.01, including
in the case of lines of credit the maximum amount of Indebtedness permitted to
be incurred thereunder;

 

(b)                                 Indebtedness
created hereunder and under the other Loan Documents;

 

77

 

(c)                                  Indebtedness
under completion guarantees, appeal bonds, performance or surety bonds or with
respect to workers’ compensation claims, in each case incurred in the ordinary
course of business;

 

(d)                                 Indebtedness
under or in respect of Swap Contracts that are not speculative in nature;

 

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

 

(f)                                    Cash Management Obligations and other Indebtedness in respect of
netting services, overdraft protections and similar arrangements in each case
in connection with deposit accounts;

 

(g)                                 Indebtedness
consisting of (i) the financing of insurance premiums or (ii) take-or-pay
obligations contained in supply arrangements, in each case, in the ordinary
course of business;

 

(h)                                 Indebtedness
incurred by the Borrower or any Subsidiary constituting reimbursement
obligations with respect to letters of credit issued in the ordinary course of
business, including without limitation letters of credit in respect of workers
compensation claims, health, disability or other employee benefits or property,
casualty or liability insurance or self-insurance or other Indebtedness with
respect to reimbursement-type obligations regarding workers compensation
claims; provided, that (i) upon the drawing of such letters of
credit or the incurrence of such Indebtedness, such obligations are reimbursed
within 30 days following such drawing or incurrence and (ii) such letters
of credit are not provided to secure the repayment of other Indebtedness of the
Borrower or any Subsidiary.

 

(i)                                     with respect to
the Borrower or any Subsidiary, (A) purchase money Indebtedness (including
Capital Lease Obligations) and Synthetic Lease Obligations, (B) indebtedness
incurred in connection with a Permitted Acquisition, (C) Loans obtained
through an increase in the Commitments under Section 2.01(c) and
(D) other newly issued Indebtedness, provided that (y) the
aggregate principal amount of Indebtedness incurred pursuant to this Section 8.01(i) shall
not exceed $250,000,000 at any time outstanding and (z) with respect to
any Indebtedness incurred pursuant to this Section 8.01(i) in
excess of $30,000,000 the maturity date of such Indebtedness is on (solely with
respect to such Indebtedness incurred in accordance with Section 2.01(f))
or after the Maturity Date;

 

(j)                                     unsecured  subordinated Indebtedness (which may be guaranteed by any
Loan Party on a subordinated basis); provided,  that (i) after
giving effect to the incurrence of any such Indebtedness on a Pro Forma Basis,
the Borrower is in Pro Forma Compliance, (ii) no Default or Event of
Default shall have occurred and be continuing or would result therefrom, (iii) such
Indebtedness matures after the six-month anniversary of the Maturity Date and (iv) is
subordinated to the Obligations on terms and conditions satisfactory to the
Administrative Agent in form and substance;

 

(k)                                  other unsecured
Indebtedness not contemplated in the foregoing clauses of this Section; provided
that (i) after giving effect to the incurrence of any such Indebtedness on
a Pro Forma Basis, the Borrower is in Pro Forma Compliance and (ii) no
Default or Event of Default shall have occurred and be continuing or would
result therefrom; and

 

(l)                                     Indebtedness
incurred to extend, renew or refinance any Indebtedness described in Section 8.0.1(a),
(i) or (j) (“Refinancing
Indebtedness”); provided,
that (i) such Refinancing Indebtedness is in an aggregate principal amount
not greater than the aggregate principal amount of the Indebtedness being
extended, renewed or refinanced, plus the amount of any interest, premiums or
penalties required to 

 

78

 

be
paid thereon plus fees and expenses associated therewith, (ii) such
Refinancing Indebtedness has a later or equal final maturity and a longer or
equal weighted average life to maturity than the Indebtedness being extended,
renewed or refinanced, (iii) if the Indebtedness being extended, renewed
or refinanced is subordinated to the Obligations, the Refinancing Indebtedness
is subordinated to the Obligations on terms no less favorable to the Lenders
than the Indebtedness being extended, renewed or refinanced, (iv) only the
obligors in respect of the Indebtedness being extended, renewed or refinanced
may become obligated with respect to such Refinancing Indebtedness, (v) the
security interest(s) granted in connection with such Refinancing
Indebtedness, if any, shall not cover more collateral, in any material respect,
than the security interest(s), if any, granted in connection with the
Indebtedness being refinanced and (vi) the non-economic covenants, events
of default, remedies and other provisions of the Refinancing Indebtedness, when
taken as a whole, shall be materially no less favorable to the Lenders than
those contained in the Indebtedness being extended, renewed or refinanced.

 

8.02                           Liens.

 

Create,
incur, assume or permit to exist any Lien on any property or assets (including
Equity Interests or other securities of any person, including any Subsidiary)
now owned or hereafter acquired by it or on any income or revenues or rights in
respect of any thereof, except:

 

(a)                                  Liens on property or assets
of the Borrower and its Subsidiaries existing on the Closing Date and set forth
in Schedule 8.02; provided, that such Liens shall secure only
those obligations which they secure on the Closing Date and any extensions,
renewals and replacements thereof permitted hereunder;

 

(b)                                 any Lien
created under the Loan Documents;

 

(c)                                  any Lien
existing on any property or asset prior to the acquisition thereof by the
Borrower or any Subsidiary (including without limitation Liens securing
Indebtedness incurred pursuant to Section 8.01(i)(B)); provided, that (i) such Lien is not created in contemplation of or
in connection with such acquisition, (ii) such Lien does not apply to any
other property or assets of the Borrower or any Subsidiary and (iii) such
Lien does not materially interfere with the use, occupancy and operation of any
Mortgaged Property;

 

(d)                                 Liens for taxes
not yet due or which are being contested in compliance with Section 7.03;

 

(e)                                  carriers’,
landlords’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other
like Liens arising in the ordinary course of business and securing obligations
that are not due and payable or which are being contested in compliance with Section 7.03
or for which appropriate reserves have been established;

 

(f)                                    pledges and
deposits made in the ordinary course of business in compliance with workmen’s
compensation, unemployment insurance and other social security laws or
regulations;

 

(g)                                 deposits to
secure the performance of bids, trade contracts (other than for Indebtedness),
leases (other than Capital Lease Obligations), statutory obligations, surety
and appeal bonds, performance bonds and other obligations of a like nature
incurred in the ordinary course of business;

 

(h)                                 zoning
restrictions, easements, rights-of-way, restrictions on use of real property
and other similar encumbrances incurred in the ordinary course of business
which, in the aggregate, do not 

 

79

 

materially
detract from the value of the property subject thereto or interfere with the
ordinary conduct of the business of the Borrower or any of its Subsidiaries as
currently operated;

 

(i)                                     Liens arising
out of judgments or awards in respect of which the Borrower or any of the
Subsidiaries shall in good faith be prosecuting an appeal or proceedings for
review in respect of which there shall be secured a subsisting stay of
execution pending such appeal or proceedings; provided, that the aggregate amount of all such judgments or
awards (and any cash and the fair market value of any property subject to such
Liens) does not exceed $20,000,000 at any time outstanding;

 

(j)                                     licenses,
leases or subleases granted by the Borrower or any Subsidiary to third persons
in the ordinary course of business not interfering in any material respect with
the business of the Borrower or any Subsidiary;

 

(k)                                  Liens in favor
of customs or revenue authorities arising as a matter of law to secure payment
of customs duties in connection with the importation of goods;

 

(l)                                     any interest of
a lessor under Liens arising from precautionary UCC financing statement filings
regarding operating leases entered into by the Borrower or any of its
Subsidiaries in the ordinary course of business;

 

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

 

(n)                                 Liens that are
contractual or statutory setoff rights arising in the ordinary course of
business with financial institutions, relating to pooled deposit accounts or
sweep accounts of the Borrower and its Subsidiaries to permit satisfaction of
overdraft or similar obligations incurred in the ordinary course of business or
relating to purchase orders or other agreements entered into with customers of
the Borrower or any of its Subsidiaries in the ordinary course of business;

 

(o)                                 Liens solely on
any cash earnest money deposits by the Borrower or any of its Subsidiaries in
connection with any letter of intent or purchase agreement permitted under this
Agreement;

 

(p)                                 all Liens set
forth in the survey and title policies delivered to the Administrative Agent
pursuant to Section 5.01(g);

 

(q)                                 any interest or
title of a licensor, lessor or sublessor under any license or lease agreement
pursuant to which rights are granted to the Borrower or any Subsidiary;

 

(r)                                    Liens deemed to
exist in connection with investments in repurchase agreements permitted under
this Agreement;

 

(s)                                  Liens securing
Indebtedness permitted to be incurred pursuant to Section 8.01(i)(A);
provided that such Liens encumber only the property acquired in
connection with such Indebtedness;

 

(t)                                    Liens on assets
of Foreign Subsidiaries securing Indebtedness of Foreign Subsidiaries permitted
to be incurred under Section 8.01(i); and

 

(u)                                 Liens on any
assets which are the subject of any GSA Transaction.

 

80

 

8.03                           Sale and
Lease-Back Transactions.

 

Enter
into any arrangement, directly or indirectly, with any person whereby it shall
sell or transfer any property, real or personal, used or useful in its
business, whether now owned or hereafter acquired, and thereafter rent or lease
such property or other property which it intends to use for substantially the
same purpose or purposes as the property being sold or transferred unless (a) the
sale of such property is permitted by Section 8.05  and (b) any Capital Lease Obligations, Synthetic Lease
Obligations or Liens arising in connection therewith are permitted by Sections
8.01 and 8.02, as applicable.

 

8.04                           Investments, Loans
and Advances.

 

Purchase,
hold or acquire any Equity Interests, evidences of indebtedness or other
securities of, make or permit to exist any loans or advances to, or make or
permit to exist any investment or any other interest in, any other person, except:

 

(a)                                  Permitted
Investments;

 

(b)                                 investments
received in connection with the bankruptcy or reorganization of, or settlement
of delinquent accounts and disputes with, customers and suppliers, in each case
in the ordinary course of business;

 

(c)                                  the Borrower
and the Subsidiaries may make loans and advances in the ordinary course of
business to their respective employees so long as the aggregate principal
amount thereof at any time outstanding (determined without regard to any
write-downs or write-offs of such loans and advances) shall not exceed
$3,000,000 at any time and advances in the ordinary course of business of
payroll payments to employees and for entertainment and travel expenses of
employees;

 

(d)                                 the Borrower
may enter into  Swap Contracts in the ordinary
course of business that are not speculative in nature;

 

(e)                                  the Borrower
and its Subsidiaries may (i) acquire and hold receivables owing to it, if
created or acquired in the ordinary course of business and payable or
dischargeable in accordance with customary trade terms (including the dating of
receivables) of the Borrower or such Subsidiary and (ii) make loans to
customers, dealers and suppliers in the ordinary course of business and
consistent with past practices;

 

(f)                                    the Borrower
may acquire and hold obligations of one or more officers or other employees of
the Borrower or its subsidiaries in connection with such officers’ or employees’
acquisition of Equity Interests of the Borrower;

 

(g)                                 purchases of
inventory, raw materials and related assets in the ordinary course of business;

 

(h)                                 in addition to
investments, loans and advances permitted by paragraphs (a) through (g) above,
additional investments, loans and advances by the Borrower and the Subsidiaries
(including investments, loans and advances similar or dissimilar in nature to
those permitted by paragraphs (a) through (g) above); provided
that (i) after giving effect to any such investment, loan or advance on a
Pro Forma Basis, the Borrower is in Pro Forma Compliance, (ii) no Default
or Event of Default shall have occurred and be continuing or would result
therefrom and (iii) if such investment involves an acquisition of all or
substantially all of the assets of a Person or line of business of such Person,
or no less than 100% 

 

81

 

of
the Equity Interests (except for directors’ qualifying shares) of a person
(referred to herein as the “Acquired Entity”), (A) the board of
directors (or other comparable governing body) of the Acquired Entity shall
have duly approved such acquisition and (B) the property acquired in such
acquisition is used or useful in the same or a related line of business as the
Borrower and its Subsidiaries were engaged in as of the Closing Date (or any
reasonable extensions or expansions thereof) (any acquisition of an Acquired
Entity meeting all the criteria of this Section 8.04(h) being
referred to herein as a “Permitted Acquisition”); and

 

(i)                                     Investments (including
investments by the Borrower and the Subsidiaries in the Equity Interests of the
Subsidiaries) existing as of the Closing Date and set forth in Schedule 8.04.

 

8.05                           Mergers,
Consolidations, Sales of Assets and Acquisitions.

 

(a)                                  Merge into or consolidate
with any other Person, or permit any other Person to merge into or consolidate
with it, or sell, transfer, lease or otherwise dispose of (in one transaction
or in a series of transactions) all or substantially all of the assets (whether
now owned or hereafter acquired) of the Borrower or less than all the Equity
Interests of any Subsidiary, or purchase, lease or otherwise acquire (in one
transaction or a series of transactions) all or any substantial part of the
assets of any other person, except that (i) the Borrower and any
Subsidiary may purchase and sell inventory, materials and equipment in the
ordinary course of business and may license intellectual property in the
ordinary course of business, (ii) the Borrower and any Subsidiary may sell
obsolete, damaged or worn-out inventory and equipment in the ordinary course of
business and (iii) if at the time thereof and immediately after giving
effect thereto no Event of Default or Default shall have occurred and be
continuing (u) any Subsidiary may change its form of organization in
compliance with Section 7.06(a), if applicable, (v) any Person
may make investments and advances permitted by Section 8.04, (w) any
wholly owned Subsidiary may merge into the Borrower in a transaction in which
the Borrower is the surviving corporation, (x) any wholly owned Subsidiary
may merge into or consolidate with any other wholly owned Subsidiary in a
transaction in which the surviving entity is a wholly owned Subsidiary and no
person other than the Borrower, a wholly owned Subsidiary or the De Minimis
Holders receives any consideration (provided, that if any party to any
such transaction is a Loan Party, the surviving entity of such transaction
shall be a Loan Party), (y) the Borrower and any Subsidiary may make
Permitted Acquisitions and (z) any Subsidiary of the Borrower may merge with
another person in a transaction constituting an Asset Sale permitted hereunder.

 

(b)                                 Engage in any
Asset Sale otherwise permitted under paragraph (a) above unless
(i) such Asset Sale is for consideration at least 75% of which is cash
(other than in the case of a like-kind exchange or trade-in of one asset for
another asset used or useful in the business of the Borrower and its
Subsidiaries) and (ii) such consideration is at least equal to the book
value of the assets being sold, transferred, leased or disposed of and the fair
market value of all assets sold, transferred, leased or disposed of pursuant to
this paragraph (b) shall not exceed 7.5% of the total book value of the
assets of the Borrower and its Subsidiaries on a consolidated basis, determined
as of the date of the most recent internally available balance sheet.  Upon a sale of assets or the sale of Equity
Interests of a Subsidiary of a Loan Party permitted by this Section 8.05,
the Administrative Agent shall deliver to the Borrower, upon the Borrower’s
request and at the Borrower’s expense, such documentation as is reasonably
necessary to evidence the release of the Administrative Agent’s security
interest in such assets or Equity Interests, including, without limitation,
amendments or terminations of UCC financing statements, the return of stock
certificates and the release of a Guarantor (as applicable) from its
obligations under the Loan Documents.

 

82

 

8.06                           Restricted
Payments; Restrictive Agreements.

 

(a)                                  Declare or make, or agree to
declare or make, directly or indirectly, any Restricted Payment (including
pursuant to any Synthetic Purchase Agreement), or incur any obligation
(contingent (unless the contingency is the repayment of the Obligations or
receipt of consent from the requisite lenders under this Agreement) or
otherwise) to do so; provided, however, that:

 

(i)                                     any direct or indirect
wholly owned Domestic Subsidiary of the Borrower and any Foreign Subsidiary may
declare and pay dividends or make other distributions ratably to its equity
holders;

 

(ii)                                  so long as no Event of
Default or Default shall have occurred and be continuing or would result
therefrom, the Borrower may repurchase Equity Interests of the Borrower owned
by past or present officers, directors or employees of the Borrower or the
Subsidiaries or make payments to employees of the Borrower or the Subsidiaries
upon termination of employment of such employees (including as a result of
retirement or severance) in connection with the exercise of stock options,
stock appreciation rights or similar equity incentives or equity based
incentives pursuant to management incentive plans or in connection with the
death or disability of such employees in an aggregate amount not to exceed $5,000,000
in any fiscal year (it being agreed that any amount not utilized in any fiscal
year may be carried forward and utilized in the immediately following fiscal
year and that any amount spent in any fiscal year shall be deemed to utilize
any such carried forward amount first);

 

(iii)                               the Borrower may make
Restricted Payments to fund amounts payable to any participant in any Plan of
the Borrower or the Subsidiaries upon the termination of the employment of such
participant in an amount not to exceed $1,000,000 in any fiscal year of the
Borrower;

 

(iv)                              in addition to the
Restricted Payments in clauses (i)-(iii) above, the Borrower and its
Subsidiaries may make additional Restricted Payments (including Restricted
Payments similar or dissimilar to those in clauses (i) through (iii) above);
provided, that (A) no Default or Event of Default shall have
occurred and be continuing or would result therefrom and (B) after giving
effect to any such Restricted Payment on a Pro Forma Basis, the Borrower is in
Pro Forma Compliance; and

 

Notwithstanding
the foregoing, in the event that the failure to comply with any Financial
Performance Covenant is cured through the exercise of the Cure Right set forth
in Article IX, Sections 8.06(a)(iii) and (iv) above
shall only be available to the Loan Parties if (x) the Required Lenders
consent to the relevant Restricted Payment pursuant to Section 8.06(a)(iii) and
(iv) or (y) the Borrower is in compliance with the Financial
Performance Covenants as of the end of any two consecutive fiscal quarters
following the fiscal quarter in which the Borrower exercised its Cure Right.

 

(b)                                 Enter into,
incur or permit to exist any agreement or other arrangement that prohibits,
restricts or imposes any condition upon (i) the ability of the Borrower or
any Subsidiary to create, incur or permit to exist any Lien upon any of its
property or assets to secure the Obligations or (ii) the ability of any
Subsidiary to pay dividends or other distributions with respect to any of its
Equity Interests or to make or repay loans or advances to the Borrower or any
other Subsidiary or to Guarantee Indebtedness of the Borrower or any other
Subsidiary; provided, that (A) the foregoing shall not apply to
restrictions and conditions imposed by law or by any Loan Document, (B) the
foregoing shall not apply to customary restrictions and conditions contained in
agreements relating to the sale of stock or assets 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, (C) clause (i) of the foregoing shall not apply to
restrictions or 

 

83

 

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 and subject to the obligations of the
Borrower under Section 7.09(b) hereof, (D) clause (i) of
the foregoing shall not apply to customary provisions in leases and other
contracts restricting the assignment thereof and (E) clause (i) and (ii) of
the foregoing shall not apply to restrictions and conditions imposed (1) under
Indebtedness of Foreign Subsidiaries incurred under Section 8.01 or
(2) under contracts with customers entered into the ordinary course of
business that contain restrictions on cash or other deposits or net worth.

 

8.07                           Transactions
with Affiliates.

 

Except
for transactions by or among Loan Parties or by or among Foreign Subsidiaries,
sell or transfer any property or assets to, or purchase or acquire any property
or assets from, or otherwise engage in any other transactions with, any of its
Affiliates, except that (a) the Borrower or any Subsidiary may engage in
any of the foregoing transactions at prices and on terms and conditions not
less favorable to the Borrower or such Subsidiary than could be obtained on an
arm’s-length basis from unrelated third parties, (b) Restricted Payments
may be effected to the extent provided in Section 8.06,
(c) reasonable fees and compensation may be paid to, and indemnities may
be provided on behalf of, officers, directors and employees of, and consultants
to, the Borrower and the Subsidiaries, as determined by the board of directors
or equivalent governing body or appropriate officers of the Borrower in good
faith, (d) securities may be issued and other payments, awards or grants
(in cash, equity securities or otherwise) may be made pursuant to, or with
respect to the funding of, employment arrangements, stock options and stock
ownership plans approved by the board of directors or equivalent governing body
of the Borrower in good faith, (e) the Loan Parties may perform their
respective obligations under the terms of any registration rights agreement, (f) loans,
investments and advances may be made to the extent permitted by Sections
8.01 and 8.04, and (g) transfers of property or assets from
Loan Parties to Foreign Subsidiaries in the ordinary course of business not
otherwise prohibited under this Agreement.

 

8.08                           Business of
Borrower and Subsidiaries.

 

Engage
at any time in any business or business activity other than the business
currently conducted by them and business activities that constitute a
reasonable extension, development or expansion thereof reasonably incidental
thereto.

 

8.09                           Amendments of
Subordinated Indebtedness.

 

Permit
any supplement, modification or amendment of any subordinated Indebtedness of
the Borrower or any Subsidiary that would cause such Indebtedness to not be in
compliance with the subordination provisions of Section 8.01(j) or
that is reasonably likely to adversely affect the ability of the Borrower to
repay the Obligations when due without the prior written consent of the
Administrative Agent.

 

8.10                           Capital
Expenditures.

 

(a)                                  Permit the aggregate amount
of Capital Expenditures made by the Borrower and the Subsidiaries in any fiscal
year of the Borrower to exceed the sum of (i) the amount set forth below
for such fiscal year as the “Capital Expenditure Base Amount” for such year,
and (ii) the Acquired CapEx Amount:

 

84

 

 

	
  Fiscal
  Year Ended

  	
   

  	
  Capital Expenditure Base Amount

  	
   

  
	
  December 31, 2007

  	
   

  	
  $

  	
  30,000,000

  	
   

  
	
  December 31, 2008 and each fiscal year ending
  thereafter

  	
   

  	
  $

  	
  40,000,000

  	
   

  

 

For
purposes of this Section 8.10, the “Acquired
CapEx Amount”, with respect to any Acquired Entity, shall equal the product
of (x) the aggregate amount of Capital Expenditures made by the Acquired
Entity in the two fiscal years prior to the date of the Permitted Acquisition
and (y) 0.50.

 

(b)                                 The amount of
permitted Capital Expenditures set forth in paragraph (a) above (as
adjusted in accordance with the terms thereof) in respect of any fiscal year
commencing with the fiscal year ending on December 31, 2007, shall be
increased (but not decreased) by the amount of unused permitted Capital
Expenditures for the two immediately preceding fiscal years; provided,
that Capital Expenditures made pursuant to this Section during any fiscal
year shall be deemed made, first, in respect of amounts carried over
from the fiscal year two years prior thereto pursuant to the preceding
sentence, second, in respect of amounts carried over from the fiscal
year immediately prior thereto pursuant to the preceding sentence and, third,
in respect of amounts permitted for such fiscal year as provided above.

 

8.11                           Financial Covenants.

 

(a)                                  Permit the
Consolidated Interest Coverage Ratio as of the end of any fiscal quarter of the
Borrower to be less than 3.0 to 1.0.

 

(b)                                 Permit the
Consolidated Net Leverage Ratio as of the end of any fiscal quarter of the
Borrower to be greater than 4.0 to 1.0.

 

8.12                           Fiscal Year.

 

Change
its fiscal year-end to a date other than December 31.

 

ARTICLE IX

 

EVENTS OF DEFAULT AND
REMEDIES

 

9.01                           Events of
Default.

 

In
case of the happening of any of the following events (“Events of Default”):

 

(a)                                  any representation or
warranty made or deemed made in or in connection with any Loan Document or the
borrowings or issuances of Letters of Credit hereunder, or any representation,
warranty, statement or information contained in any report, certificate, financial
statement or other instrument furnished in connection with or pursuant to any
Loan Document, shall prove to have been false or misleading in any material
respect when so made, deemed made or furnished;

 

(b)                                 default shall be made in the
payment of any principal of any Loan or the reimbursement with respect to any
L/C Disbursement 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 by
acceleration thereof or otherwise;

 

(c)                                  default shall be made in the
payment of any interest on any Loan or L/C Disbursement or of any Fee or any
other amount (other than an amount referred to in (b) above) due under any
Loan 

 

85

 

Document,
when and as the same shall become due and payable, and such default shall
continue unremedied for a period of three Business Days;

 

(d)                                 default shall be made in the
due observance or performance by the Borrower or any Subsidiary of any
covenant, condition or agreement contained in Section 7.01(a), 7.05(a),
7.08 or in Article VIII;

 

(e)                                  default shall be made in the
due observance or performance by the Borrower or any Subsidiary of any
covenant, condition or agreement contained in any Loan Document (other than
those specified in (b), (c) or (d) above) and such default shall
continue unremedied for a period of 30 days after notice thereof from the
Administrative Agent or any Lender to the Borrower;

 

(f)                                    (i) the Borrower or any
Material Subsidiary shall fail to pay any principal or interest due in respect
of any Material Indebtedness, when and as the same shall become due and
payable, or (ii) any other 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 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; provided, that this clause (ii) shall not
apply to secured Indebtedness that becomes due as a result of the voluntary
sale or transfer of the property or assets securing such Indebtedness;

 

(g)                                 an involuntary proceeding
shall be commenced or an involuntary petition shall be filed in a court of
competent jurisdiction seeking (i) relief in respect of the Borrower or
any Material Subsidiary, or of a substantial part of the property or assets of
the Borrower or a Material Subsidiary, under Title 11 of the United States
Code, as now constituted or hereafter amended, or any other Federal, state or
foreign bankruptcy, insolvency, receivership or similar law, (ii) the
appointment of a receiver, trustee, custodian, sequestrator, conservator or
similar official for the Borrower or any Material Subsidiary or for a
substantial part of the property or assets of the Borrower or a Material
Subsidiary or (iii) the winding-up or liquidation of the Borrower or any
Material Subsidiary; and such proceeding or petition shall continue undismissed
for 60 days or an order or decree approving or ordering any of the foregoing
shall be entered;

 

(h)                                 the Borrower or any Material
Subsidiary shall (i) voluntarily commence any proceeding or file any
petition seeking relief under Title 11 of the United States Code, as now
constituted or hereafter amended, or any other Federal, state or foreign
bankruptcy, insolvency, receivership or similar law, (ii) consent to the
institution of, or fail to contest in a timely and appropriate manner, any
proceeding or the filing of any petition described in (g) above, (iii) apply
for or consent to the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official for the Borrower or any Material
Subsidiary or for a substantial part of the property or assets of the Borrower
or any Material Subsidiary, (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, (vi) become unable,
admit in writing its inability or fail generally to pay its debts as they
become due or (vii) take any action for the purpose of effecting any of
the foregoing;

 

(i)                                     one or more judgments for
the payment of money in an aggregate amount in excess of $20,000,000 (net of
amounts covered by independent third party insurance as to which the insurer
has been notified of such judgment or order and does not deny coverage and of
amounts covered by an indemnity from a person that, in the reasonable judgment
of the Administrative Agent, is creditworthy) from a party shall be rendered
against the Borrower, any Material Subsidiary or any combination thereof and
the same shall remain unsatisfied and undischarged for a period of 30
consecutive days during which execution shall not be effectively stayed, or any
action shall be legally taken by a judgment creditor to 

 

86

 

levy
upon assets or properties of the Borrower or any Material Subsidiary to enforce
any such judgment; 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 liability of the Borrower
and its ERISA Affiliates in an aggregate amount exceeding $20,000,000;

 

(j)                                     any Guarantee for any reason
shall cease to be in full force and effect (other than in accordance with its
terms), or any Guarantor shall deny in writing that it has any further
liability hereunder (other than as a result of the discharge of such Guarantor
in accordance with the terms of the Loan Documents);

 

(k)                                  any security interest in any
material item of Collateral purported to be created by any Collateral Document
shall cease to be, or shall be asserted by the Borrower or any other Loan Party
not to be, a valid, perfected, first priority (except as otherwise expressly
provided in this Agreement or such Security Document) security interest in the
securities, assets or properties covered thereby, except to the extent that any
such loss of perfection or priority results from the failure of the
Administrative Agent to maintain possession of certificates representing
securities pledged under the Security Agreement and except to the extent that
such loss is covered by a lender’s title insurance policy and the related
insurer shall not have denied or disclaimed in writing that such loss is
covered by such title insurance policy; or there shall have occurred a Change
in Control;

 

then,
and in every such event (other than an event with respect to the Borrower
described in paragraph (g) or (h)(i)-(v) above), 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 Borrower,
take either or both of the following actions, at the same or different
times:  (i) terminate forthwith the
Commitments and (ii) declare the Loans then outstanding to be forthwith
due and payable in whole or in part, whereupon the principal of the Loans so
declared to be due and payable, together with accrued interest thereon and any
unpaid accrued Fees and all other liabilities of the Borrower accrued hereunder
and under any other Loan Document, shall become forthwith due and payable,
without presentment, demand, protest or any other notice of any kind, all of
which are hereby expressly waived by the Borrower, anything contained herein or
in any other Loan Document to the contrary notwithstanding; and in any event
with respect to the Borrower described in paragraph (g) or (h)(i)-(v) above,
the Commitments shall automatically terminate and the principal of the Loans
then outstanding, together with accrued interest thereon and any unpaid accrued
Fees and all other liabilities of the Borrower accrued hereunder and under any
other Loan Document, shall automatically become due and payable, without
presentment, demand, protest or any other notice of any kind, all of which are
hereby expressly waived by the Borrower, anything contained herein or in any
other Loan Document to the contrary notwithstanding.

 

Notwithstanding
anything to the contrary contained in this Article IX, in the event
that the Borrower would otherwise fail to comply with the requirements of Section 8.11(a) or
(b) (each a “Financial Performance Covenant”) at the end of
any fiscal quarter, at any time within ten days after the date on which a
Compliance Certificate must be delivered for the end of such fiscal quarter or
fiscal year, as applicable, the Borrower shall have the right, exercisable at
any time during the term of this Agreement (provided that such right may not be
exercised with respect to more than two fiscal quarters during any consecutive
four fiscal quarter period), to issue Permitted Cure Securities (as defined
below) for cash or otherwise receive cash contributions to the capital of the
Borrower (in any case, not in excess of $25,000,000 in the aggregate in any
consecutive four fiscal quarter period), and to contribute any such cash to the
capital of Borrower (the “Cure Right”), and upon the receipt by the
Borrower of such cash (the “Cure Amount”) pursuant to the exercise by
the Borrower of such Cure Right, such Financial Performance Covenant shall be
recalculated giving effect to the following pro forma adjustments:

 

87

 

(i)                                     Consolidated
EBITDA shall be increased solely for the purpose of measuring the Financial
Performance Covenants and not for any other purpose under this Agreement, by an
amount equal to the Cure Amount; and

 

(ii)                                  if, after
giving effect to the foregoing recalculations, the Borrower shall then be in
compliance with the requirements of all Financial Performance Covenants, the
Borrower shall be deemed to have satisfied the requirements of the Financial
Performance Covenants as of the relevant date of determination with the same
effect as though there had been no failure to comply therewith at such date,
and the applicable breach or default of any such Financial Performance Covenant
that would have otherwise occurred on such date but for the application of the
foregoing recalculations shall be deemed not to have occurred.

 

As
used in this Article IX, the term “Permitted Cure Securities” shall
mean an equity security of the Borrower having no mandatory redemption,
repurchase, repayment or similar requirements prior to the six-month
anniversary of the Maturity Date and upon which all dividends or distributions,
at the election of the Borrower, may be payable in additional shares of such
equity security.

 

9.02                           Application of
Funds.

 

After
the exercise of remedies provided for in Section 9.01 (or after the
Loans have automatically become immediately due and payable and the L/C
Obligations have automatically been required to be Cash Collateralized as set
forth in Section 2.03(g)), any amounts received on account of the
Obligations shall be applied by the Administrative Agent in the following
order:

 

First, to payment of that portion of the Obligations
constituting fees, indemnities, expenses and other amounts (including fees,
charges and disbursements of counsel to the Administrative Agent and amounts
payable under Article III) payable to the Administrative Agent in
its capacity as such;

 

Second, to payment of that portion of the Obligations
constituting fees, indemnities and other amounts (other than principal,
interest and Letter of Credit Fees) payable to the Lenders and the L/C Issuer
(including fees, charges and disbursements of counsel to the respective Lenders
and the L/C Issuer and amounts payable under Article III), ratably
among them in proportion to the respective amounts described in this clause Second
payable to them;

 

Third, to payment of that portion of the Obligations
constituting accrued and unpaid Letter of Credit Fees and interest on the Loans
and L/C Borrowings and fees, premiums and scheduled periodic payments, and any
interest accrued thereon, due under any Swap Contract between any Loan Party
and any Lender, or any Affiliate of a Lender, to the extent such Swap Contract
is permitted by Section 8.03(d), ratably among the Lenders (and, in
the case of such Swap Contracts, Affiliates of Lenders) and the L/C Issuer in
proportion to the respective amounts described in this clause Third held
by them;

 

Fourth, to (a) payment of that portion of the
Obligations constituting unpaid principal of the Loans and L/C Borrowings, (b) payment
of breakage, termination or other payments, and any interest accrued thereon,
due under any Swap Contract between any Loan Party and any Lender, or any
Affiliate of a Lender, to the extent such Swap Contract is permitted by Section 8.03(d),
(c) payments of amounts due under any Treasury Management Agreement
between any Loan Party and any Lender, or any Affiliate of a Lender and (d) Cash
Collateralize that portion of L/C Obligations comprised of the aggregate
undrawn amount of Letters of Credit, ratably among the 

 

88

 

Lenders
(and, in the case of such Swap Contracts, Affiliates of Lenders) and the L/C
Issuer in proportion to the respective amounts described in this clause Fourth
held by them; and

 

Last, the balance, if any, after all of the Obligations
have been indefeasibly paid in full, to the Borrower or as otherwise required
by Law.

 

Subject
to Section 2.03(c), amounts used to Cash Collateralize the
aggregate undrawn amount of Letters of Credit pursuant to clause Fourth
above shall be applied to satisfy drawings under such Letters of Credit as they
occur.  If any amount remains on deposit
as Cash Collateral after all Letters of Credit have either been fully drawn or
expired, such remaining amount shall be applied to the other Obligations, if
any, in the order set forth above.

 

ARTICLE X

 

ADMINISTRATIVE AGENT

 

10.01                     Appointment and
Authority.

 

Each
of the Lenders and the L/C Issuer hereby irrevocably appoints Bank of America
to act on its behalf as the Administrative Agent hereunder and under the other
Loan Documents 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 hereof or thereof, together with such actions and powers as
are reasonably incidental thereto.  The
provisions of this Article are solely for the benefit of the
Administrative Agent, the Lenders and the L/C Issuer, and neither the Borrower
nor any other Loan Party shall have rights as a third party beneficiary of any
of such provisions.

 

10.02                     Rights as a
Lender.

 

The
Person serving as the Administrative Agent hereunder shall have the same rights
and powers in its capacity as a Lender as any other Lender and may exercise the
same as though it were not the Administrative Agent and the term “Lender” or “Lenders”
shall, unless otherwise expressly indicated or unless the context otherwise
requires, include the Person serving as the Administrative Agent hereunder in
its individual capacity.  Such Person and
its Affiliates may accept deposits from, lend money to, act as the financial
advisor or in any other advisory capacity for and generally engage in any kind
of business with any Loan Party or any Subsidiary or other Affiliate thereof as
if such Person were not the Administrative Agent hereunder and without any duty
to account therefor to the Lenders.

 

10.03                     Exculpatory
Provisions.

 

The
Administrative Agent shall not have any duties or obligations except those
expressly set forth herein and in the other Loan Documents.  Without limiting the generality of the
foregoing, the Administrative Agent:

 

(a)                                  shall not be subject to any
fiduciary or other implied duties, regardless of whether a Default has occurred
and is continuing;

 

(b)                                 shall not have any duty to
take any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated hereby or by the other
Loan Documents that the Administrative Agent is required to exercise as
directed in writing by the Required Lenders (or such other number or percentage
of the Lenders as shall be expressly provided for herein or in the other Loan
Documents), provided that the Administrative 

 

89

 

Agent
shall not be required to take any action that, in its opinion or the opinion of
its counsel, may expose the Administrative Agent to liability or that is
contrary to any Loan Document or applicable law; and

 

(c)                                  shall not, except as
expressly set forth herein and in the other Loan Documents, have any duty to
disclose, and shall not be liable for the failure to disclose, any information
relating to any Loan Party or any of its Affiliates that is communicated to or
obtained by the Person serving as the Administrative Agent or any of its
Affiliates in any capacity.

 

The
Administrative Agent shall not be liable for any action taken or not taken by
it (i) with the consent or at the request of the Required Lenders (or such
other number or percentage of the Lenders as shall be necessary, or as the
Administrative Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Sections 11.01 and 9.02) or (ii) in
the absence of its own gross negligence or willful misconduct.  The Administrative Agent shall be deemed not
to have knowledge of any Default unless and until notice describing such
Default is given to the Administrative Agent by the Borrower, a Lender or the
L/C Issuer.

 

The
Administrative Agent shall not 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 any other Loan Document, (ii) the
contents of any certificate, report or other document delivered hereunder or
thereunder or in connection herewith or therewith, (iii) the performance
or observance of any of the covenants, agreements or other terms or conditions
set forth herein or therein or the occurrence of any Default, (iv) the
validity, enforceability, effectiveness or genuineness of this Agreement, any
other Loan Document or any other agreement, instrument or document or (v) 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.

 

10.04                     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 (including any electronic
message, Internet or intranet website posting or other distribution)
believed by it to be genuine and to have been signed, sent or otherwise
authenticated 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 have been made by the proper Person, and shall
not incur any liability for relying thereon. 
In determining compliance with any condition hereunder to the making of
a Loan, or the issuance of a Letter of Credit, that by its terms must be
fulfilled to the satisfaction of a Lender or the L/C Issuer, the Administrative
Agent may presume that such condition is satisfactory to such Lender or the L/C
Issuer unless the Administrative Agent shall have received notice to the
contrary from such Lender or the L/C Issuer prior to the making of such Loan or
the issuance of such Letter of Credit. 
The Administrative Agent may consult with legal counsel (who may be
counsel for the Loan Parties), independent accountants and other experts
selected by it, 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.

 

10.05                     Delegation of
Duties.

 

The
Administrative Agent may perform any and all of its duties and exercise its
rights and powers hereunder or under any other Loan Document by or through any
one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such
sub-agent may perform any and all of its duties and exercise its rights and
powers by or through their respective Related Parties.  The exculpatory provisions of this Article shall
apply to any such sub-agent and to the Related Parties of the 

 

90

 

Administrative
Agent and any such sub-agent, and shall apply to their respective activities in
connection with the syndication of the credit facilities provided for herein as
well as activities as Administrative Agent.

 

10.06                     Resignation of
Administrative Agent.

 

The
Administrative Agent may at any time give notice of its resignation to the
Lenders, the L/C Issuer and the Borrower. 
Upon receipt of any such notice of resignation, the Required Lenders
shall have the right, in consultation with the Borrower, to appoint a
successor, which shall be a bank with an office in the United States, or an
Affiliate of any such bank with an office in the United States.  If no such successor shall have been so
appointed by the Required Lenders and shall have accepted such appointment
within 30 days after the retiring Administrative Agent gives notice of its
resignation, then the retiring Administrative Agent may on behalf of the
Lenders and the L/C Issuer, appoint a successor Administrative Agent meeting
the qualifications set forth above; provided that if the Administrative
Agent shall notify the Borrower and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become
effective in accordance with such notice and (1) the retiring
Administrative Agent shall be discharged from its duties and obligations
hereunder and under the other Loan Documents and (2) all payments,
communications and determinations provided to be made by, to or through the
Administrative Agent shall instead be made by or to each Lender and the L/C
Issuer directly, until such time as the Required Lenders appoint a successor
Administrative Agent as provided for above in this Section.  Upon the acceptance of a successor’s
appointment as Administrative Agent hereunder, such successor shall succeed to
and become vested with all of the rights, powers, privileges and duties of the
retiring (or retired) Administrative Agent, and the retiring Administrative
Agent shall be discharged from all of its duties and obligations hereunder or
under the other Loan Documents (if not already discharged therefrom as provided
above in this Section).  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 the retiring
Administrative Agent’s resignation hereunder and under the other Loan
Documents, the provisions of this Article and Section 11.04
shall continue in effect for the benefit of such retiring Administrative Agent,
its sub-agents and their respective Related Parties in respect of any actions
taken or omitted to be taken by any of them while the retiring Administrative
Agent was acting as Administrative Agent.

 

Any
resignation by Bank of America as Administrative Agent pursuant to this Section shall
also constitute its resignation as L/C Issuer and Swing Line Lender.  Upon the acceptance of a successor’s
appointment as Administrative Agent hereunder, (a) such successor shall
succeed to and become vested with all of the rights, powers, privileges and
duties of the retiring L/C Issuer and Swing Line Lender, (b) the retiring
L/C Issuer and Swing Line Lender shall be discharged from all of their
respective duties and obligations hereunder or under the other Loan Documents
and (c) the successor L/C Issuer shall issue letters of credit in
substitution for the Letters of Credit, if any, outstanding at the time of such
succession or make other arrangements satisfactory to the retiring L/C Issuer
to effectively assume the obligations of the retiring L/C Issuer with respect
to such Letters of Credit.

 

10.07                     Non-Reliance on
Administrative Agent and Other Lenders.

 

Each
Lender and the L/C Issuer acknowledges that it has, independently and without
reliance upon the Administrative Agent or any other Lender or any of their
Related Parties 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 and the L/C
Issuer also acknowledges that it will, independently and without reliance upon
the Administrative Agent or any other Lender or any of their Related Parties
and based on such documents and information as it shall from time to time deem
appropriate, continue to 

 

91

 

make
its own decisions in taking or not taking action under or based upon this
Agreement, any other Loan Document or any related agreement or any document
furnished hereunder or thereunder.

 

10.08                     No Other
Duties; Etc.

 

Anything
herein to the contrary notwithstanding, none of the bookrunners, arrangers, syndication
agents, documentation agents or co-agents shall have any powers, duties or
responsibilities under this Agreement or any of the other Loan Documents,
except in its capacity, as applicable, as the Administrative Agent, a Lender or
the L/C Issuer hereunder.

 

10.09                     Administrative
Agent May File Proofs of Claim.

 

In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to any Loan Party, the Administrative Agent (irrespective
of whether the principal of any Loan or L/C Obligation shall then be due and
payable as herein expressed or by declaration or otherwise and irrespective of
whether the Administrative Agent shall have made any demand on the Borrower)
shall be entitled and empowered, by intervention in such proceeding or
otherwise:

 

(a)                                  to file and prove a claim
for the whole amount of the principal and interest owing and unpaid in respect
of the Loans, L/C Obligations and all other Obligations (other than obligations
under Swap Contracts or Treasury Management Agreements to which the
Administrative Agent is not a party) that are owing and unpaid and to file such
other documents as may be necessary or advisable in order to have the claims of
the Lenders, the L/C Issuer and the Administrative Agent (including any claim
for the reasonable compensation, expenses, disbursements and advances of the
Lenders, the L/C Issuer and the Administrative Agent and their respective
agents and counsel and all other amounts due the Lenders, the L/C Issuer and
the Administrative Agent under Sections 2.03(i) and (j), 2.09
and 11.04) allowed in such judicial proceeding; and

 

(b)                                 to collect and receive any
monies or other property payable or deliverable on any such claims and to
distribute the same;

 

and
any custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Lender and the L/C Issuer to make such payments to the Administrative Agent
and, in the event that the Administrative Agent shall consent to the making of
such payments directly to the Lenders and the L/C Issuer, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Administrative Agent and its agents and
counsel, and any other amounts due the Administrative Agent under Sections
2.09 and 11.04.

 

Nothing
contained herein shall be deemed to authorize the Administrative Agent to
authorize or consent to or accept or adopt on behalf of any Lender or the L/C
Issuer any plan of reorganization, arrangement, adjustment or composition
affecting the Obligations or the rights of any Lender or to authorize the
Administrative Agent to vote in respect of the claim of any Lender in any such
proceeding.

 

10.10                     Collateral and
Guaranty Matters.

 

The Lenders and the L/C Issuer irrevocably authorize
the Administrative Agent, at its option and in its discretion,

 

92

 

(a)                                  to release any
Lien on any Collateral granted to or held by the Administrative Agent under any
Loan Document (i) upon termination of the Aggregate Revolving Commitments
and payment in full of all Obligations (other than (A) contingent
indemnification obligations and (B) other than with respect to amounts
currently due thereunder, Cash Management Obligations and obligations under or
in respect of Swap Contracts) and the expiration or termination of all Letters
of Credit, (ii) that is transferred or to be transferred as part of or in
connection with any Asset Sale permitted hereunder or under any other Loan
Document or any Involuntary Disposition, or (iii) as approved in
accordance with Section 11.01;

 

(b)                                 to subordinate
any Lien on any property granted to or held by the Administrative Agent under
any Loan Document to the holder of any Lien on such property that is permitted
by Section 8.02(c);

 

(c)                                  to release any
Guarantor from its obligations under the Guaranty if such Person ceases to be a
Subsidiary as a result of a transaction permitted hereunder; and

 

(d)                                 upon the
occurrence of a Release of Collateral Event, to release all Collateral other
than Collateral consisting of Equity Interests of the Borrower (if applicable)
and its Subsidiaries; provided, however, that if such Release of
Collateral Event ceases to be continuing and in effect at any time, the
Required Lenders or the Administrative Agent may require first priority
security interests on the same categories of Collateral that was previously released,
such security interests to be created and perfected within 30 days of notice
from the Required Lenders or the Administrative Agent to the Borrower.

 

Upon request by the Administrative Agent at any
time, the Required Lenders will confirm in writing the Administrative Agent’s
authority to release or subordinate its interest in particular types or items
of property, or to release any Guarantor from its obligations under the
Guaranty, pursuant to this Section 10.10.

 

ARTICLE XI

 

MISCELLANEOUS

 

11.01                     Amendments, Etc.

 

No
amendment or waiver of any provision of this Agreement or any other Loan
Document, and no consent to any departure by the Borrower or any other Loan
Party therefrom, shall be effective unless in writing signed by the Required
Lenders and the Borrower or the applicable Loan Party, as the case may be, and
acknowledged by the Administrative Agent, and each such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given; provided, further, that

 

(a)                                  no such amendment, waiver or
consent shall:

 

(i)                                     extend or
increase the Commitment of a Lender (or reinstate any Commitment terminated
pursuant to Section 9.01) without the written consent of such
Lender whose Commitment is being extended or increased (it being understood and
agreed that a waiver of any condition precedent set forth in Section 5.02
or of any Default or a mandatory reduction in Commitments is not considered an
extension or increase in Commitments of any Lender);

 

93

 

(ii)                                  postpone any
date fixed by this Agreement or any other Loan Document for any payment of
principal (excluding mandatory prepayments), interest, fees or other amounts
due to the Lenders (or any of them) or any scheduled or mandatory reduction of
the Commitments hereunder or under any other Loan Document without the written
consent of each Lender entitled to receive such payment or whose Commitments
are to be reduced;

 

(iii)                               reduce the
principal of, or the rate of interest specified herein on, any Loan or L/C
Borrowing, or (subject to clause (i) of the final proviso to this Section 11.01)
any fees or other amounts payable hereunder or under any other Loan Document
without the written consent of each Lender entitled to receive such payment of
principal, interest, fees or other amounts; provided, however,
that only the consent of the Required Lenders shall be necessary to amend the
definition of “Default Rate” or to waive any obligation of the Borrower to pay
interest or Letter of Credit Fees at the Default Rate;

 

(iv)                              change Section 2.13
or Section 9.03 in a manner that would alter the pro rata sharing
of payments required thereby without the written consent of each Lender
directly affected thereby;

 

(v)                                 amend Section 1.05
or the definition of “Alternative Currency” without the written consent of each
Lender;

 

(vi)                              change any
provision of this Section 11.01(a) or the definition of “Required
Lenders” without the written consent of each Lender directly affected thereby;

 

(vii)                           except in
connection with an Asset Sale permitted under Section 8.05, release
all or substantially all of the Collateral without the written consent of each
Lender directly affected thereby or as provided in Section 10.10;
or

 

(viii)                        release the
Borrower or, except in connection with a merger or consolidation permitted
under Section 8.05 or an Asset Sale permitted under Section 8.05,
all or substantially all of the Guarantors without the written consent of each
Lender directly affected thereby, except to the extent the release of any
Guarantor is permitted pursuant to Section 10.10 (in which case
such release may be made by the Administrative Agent acting alone).

 

(b)                                 unless also
signed by the L/C Issuer, no amendment, waiver or consent shall affect the
rights or duties of the L/C Issuer under this Agreement or any Issuer Document
relating to any Letter of Credit issued or to be issued by it;

 

(c)                                  unless also
signed by the Swing Line Lender, no amendment, waiver or consent shall affect
the rights or duties of the Swing Line Lender under this Agreement;

 

(d)                                 unless also
signed by the Administrative Agent, no amendment, waiver or consent shall
affect the rights or duties of the Administrative Agent under this Agreement or
any other Loan Document;

 

(e)                                  unless also signed
by the Required Domestic Lenders, no amendment, waiver or consent shall (i) amend
or waive any mandatory prepayment on Domestic Revolving Loans under Section 2.05(b)(i) or
the manner of application thereof to the Domestic Revolving Loans or (ii) amend
the definition of “Required Lenders”; and

 

94

 

 

(f)                                    unless also
signed by the Required Euro Lenders, no amendment, waiver or consent shall (i) amend
or waive any mandatory prepayment on Euro Revolving Loans under Section 2.05(b)(ii) or
the manner of application thereof to the Euro Revolving Loans or (ii) amend
the definition of “Required Lenders”;

 

provided, however,
that notwithstanding anything to the contrary herein, (i) the Fee Letter
may be amended, or rights or privileges thereunder waived, in a writing
executed only by the parties thereto, (ii) no Defaulting Lender shall have
any right to approve or disapprove any amendment, waiver or consent hereunder,
except that the Commitment of such Lender may not be increased or extended
without the consent of such Lender, (iii) each Lender is entitled to vote
as such Lender sees fit on any bankruptcy reorganization plan that affects the
Loans, and each Lender acknowledges that the provisions of Section 1126(c) of
the Bankruptcy Code of the United States supersedes the unanimous consent
provisions set forth herein and (iv) the Required Lenders shall determine
whether or not to allow a Loan Party to use cash collateral in the context of a
bankruptcy or insolvency proceeding and such determination shall be binding on
all of the Lenders.

 

11.02                     Notices and
Other Communications; Facsimile Copies.

 

(a)                                  Notices Generally.  Except in the case of notices and other
communications expressly permitted to be given by telephone (and except as
provided in subsection (b) below), 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
telecopier as follows, and all notices and other communications expressly
permitted hereunder to be given by telephone shall be made to the applicable
telephone number, as follows:

 

(i)                                     if to the
Borrower or any other Loan Party, the Administrative Agent, the L/C Issuer or
the Swing Line Lender, to the address, telecopier number, electronic mail
address or telephone number specified for such Person on Schedule 11.02;
and

 

(ii)                                  if to any other
Lender, to the address, telecopier number, electronic mail address or telephone
number specified in its Administrative Questionnaire.

 

Notices
sent by hand or overnight courier service, or mailed by certified or registered
mail, shall be deemed to have been given when received; notices sent by
telecopier shall be deemed to have been given when sent (except that, if not
given during normal business hours for the recipient, shall be deemed to have
been given at the opening of business on the next business day for the
recipient).  Notices delivered through
electronic communications to the extent provided in subsection (b) below,
shall be effective as provided in such subsection (b).

 

(b)                                 Electronic Communications.  Notices and other communications to the
Lenders and the L/C Issuer hereunder may be delivered or furnished by
electronic communication (including e-mail and Internet or intranet websites)
pursuant to procedures approved by the Administrative Agent, provided
that the foregoing shall not apply to notices to any Lender or the L/C Issuer
pursuant to Article II if such Lender or the L/C Issuer, as
applicable, has notified the Administrative Agent that it is incapable of
receiving notices under such Article by electronic communication.  The Administrative Agent or the Borrower may,
in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it, provided
that approval of such procedures may be limited to particular notices or
communications.

 

95

 

Unless
the Administrative Agent otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by
the “return receipt requested” function, as available, return e-mail or other
written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient,
such notice or communication shall be deemed to have been sent at the opening
of business on the next business day for the recipient, and (ii) notices
or communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that
such notice or communication is available and identifying the website address
therefor.

 

(c)                                  The Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS
AVAILABLE.”  THE AGENT PARTIES (AS
DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER
MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR
ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED
OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM
VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION
WITH THE BORROWER MATERIALS OR THE PLATFORM. 
In no event shall the Administrative Agent or any of its Related Parties
(collectively, the “Agent Parties”) have any liability to the Borrower,
any Lender, the L/C Issuer or any other Person for losses, claims, damages,
liabilities or expenses of any kind (whether in tort, contract or otherwise)
arising out of the Borrower’s or the Administrative Agent’s transmission of
Borrower Materials through the Internet, except to the extent that such losses,
claims, damages, liabilities or expenses are determined by a court of competent
jurisdiction by a final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of such Agent Party; provided, however,
that in no event shall any Agent Party have any liability to the Borrower, any
Lender, the L/C Issuer or any other Person for indirect, special, incidental,
consequential or punitive damages (as opposed to direct or actual damages).

 

(d)                                 Change of Address, Etc.  Each of the Borrower, the Administrative
Agent, the L/C Issuer and the Swing Line Lender may change its address,
telecopier or telephone number for notices and other communications hereunder
by notice to the other parties hereto. 
Each other Lender may change its address, telecopier or telephone number
for notices and other communications hereunder by notice to the Borrower, the
Administrative Agent, the L/C Issuer and the Swing Line Lender.  In addition, each Lender agrees to notify the
Administrative Agent from time to time to ensure that the Administrative Agent
has on record (i) an effective address, contact name, telephone number,
telecopier number and electronic mail address to which notices and other
communications may be sent and (ii) accurate wire instructions for such
Lender.  Furthermore, each Public Lender
agrees to cause at least one individual at or on behalf of such Public Lender
to at all times have selected the “Private Side Information” or similar
designation on the content declaration screen of the Platform in order to
enable such Public Lender or its delegate, in accordance with such Public
Lender’s compliance procedures and applicable Law, including United States
Federal and state securities Laws, to make reference to Borrower Materials that
are not made available through the “Public Side Information” portion of the
Platform and that may contain material non-public information with respect to
the Borrower or its securities for purposes of United States Federal or state
securities laws.

 

(e)                                  Reliance by Administrative
Agent, L/C Issuer and Lenders.  The Administrative Agent, the L/C
Issuer and the Lenders shall be entitled to rely and act upon any notices
(including telephonic Loan Notices and Swing Line Loan Notices) purportedly
given by or on behalf of any Loan Party even if (i) such notices were not
made in a manner specified herein, were incomplete or were not preceded or
followed by any other form of notice specified herein, or (ii) the terms
thereof, as understood by the 

 

96

 

recipient,
varied from any confirmation thereof. 
The Loan Parties shall indemnify the Administrative Agent, the L/C
Issuer, each Lender and the Related Parties of each of them from all losses,
costs, expenses and liabilities resulting from the reliance by such Person on
each notice purportedly given by or on behalf of a Loan Party.  All telephonic notices to and other telephonic
communications with the Administrative Agent may be recorded by the
Administrative Agent, and each of the parties hereto hereby consents to such
recording.

 

11.03                     No Waiver;
Cumulative Remedies.

 

No
failure by any Lender, the L/C Issuer or the Administrative Agent to exercise,
and no delay by any such Person in exercising, any right, remedy, power or
privilege hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, remedy, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege.  The rights,
remedies, powers and privileges herein provided are cumulative and not
exclusive of any rights, remedies, powers and privileges provided by law.

 

11.04                     Expenses;
Indemnity; and Damage Waiver.

 

(a)                                  Costs and Expenses.  The Loan Parties shall pay (i) all
reasonable out-of-pocket expenses incurred by the Administrative Agent and its
Affiliates (including the reasonable fees, charges and disbursements of counsel
for the Administrative Agent), in connection with the syndication of the credit
facilities provided for herein, the preparation, negotiation, execution,
delivery and administration 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 reasonable out-of-pocket expenses incurred by the
L/C Issuer in connection with the issuance, amendment, renewal or extension of
any Letter of Credit or any demand for payment thereunder and (iii) all
out-of-pocket expenses incurred by the Administrative Agent, any Lender or the
L/C Issuer (including the fees, charges and disbursements of any counsel for
the Administrative Agent, any Lender or the L/C Issuer), and shall pay all fees
and time charges for attorneys who may be employees of the Administrative
Agent, any Lender or the L/C Issuer, in connection with the enforcement or
protection of its rights (A) in connection with this Agreement and the
other Loan Documents, including its rights under this Section, or (B) in
connection with the Loans made or Letters of Credit issued hereunder, including
all such out-of-pocket expenses incurred during any workout, restructuring or
negotiations in respect of such Loans or Letters of Credit.

 

(b)                                 Indemnification by the Loan
Parties.  The Loan Parties shall
indemnify the Administrative Agent (and any sub-agent thereof), each Lender and
the L/C Issuer, 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 and all losses, claims, damages, liabilities and
related expenses (including the fees, charges and disbursements of any counsel
for any Indemnitee), and shall indemnify and hold harmless each Indemnitee from
all fees and time charges and disbursements for attorneys who may be employees
of any Indemnitee, incurred by any Indemnitee or asserted against any
Indemnitee by any third party or by the Borrower or any other Loan Party
arising out of, in connection with, or as a result of (i) the execution or
delivery of this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the performance by the parties hereto
of their respective obligations hereunder or thereunder or the consummation of
the transactions contemplated hereby or thereby, or, in the case of the
Administrative Agent (and any sub-agent thereof) and its Related Parties only,
the administration of this Agreement and the other Loan Documents,
(ii) any Loan or Letter of Credit or the use or proposed use of the
proceeds therefrom (including any refusal by the L/C Issuer to honor a demand
for payment under a Letter of Credit if the documents presented in connection
with such demand do not strictly comply with the terms of such Letter of
Credit), (iii) any actual or alleged presence 

 

97

 

or
release of Hazardous Materials on or from any property owned or operated by a
Loan Party or any of its Subsidiaries, or any Environmental Liability related
in any way to a Loan Party or any of its 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, whether
brought by a third party or by the Borrower or any other Loan Party, and
regardless of whether any Indemnitee is a party thereto, in all cases, whether
or not caused by or arising, in whole or in part, out of the comparative,
contributory or sole negligence of the Indemnitee; provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses (x) 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 or (y) result from a claim brought by the Borrower or any other
Loan Party against an Indemnitee for breach in bad faith of such Indemnitee’s
obligations hereunder or under any other Loan Document, if the Borrower or such
Loan Party has obtained a final and nonappealable judgment in its favor on such
claim as determined by a court of competent jurisdiction.

 

(c)                                  Reimbursement by Lenders.  To the extent that the Loan Parties for any
reason fail to indefeasibly pay any amount required under subsection (a) or (b) of
this Section to be paid by them to the Administrative Agent (or any
sub-agent thereof), the L/C Issuer or any Related Party of any of the
foregoing, each Lender severally agrees to pay to the Administrative Agent (or
any such sub-agent), the L/C Issuer or such Related Party, as the case may be,
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 (or any such sub-agent) or the
L/C Issuer in its capacity as such, or against any Related Party of any of the
foregoing acting for the Administrative Agent (or any such sub-agent) or L/C
Issuer in connection with such capacity. 
The obligations of the Lenders under this subsection (c) are
subject to the provisions of Section 2.12(d).

 

(d)                                 Waiver of Consequential
Damages, Etc.  To the
fullest extent permitted by applicable law, no Loan Party shall assert, and
each Loan 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, any other Loan Document or any agreement or
instrument contemplated hereby, the transactions contemplated hereby or
thereby, any Loan or Letter of Credit or the use of the proceeds thereof.  No Indemnitee referred to in subsection (b) above
shall be liable for any damages arising from the use by unintended recipients
of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in
connection with this Agreement or the other Loan Documents or the transactions
contemplated hereby or thereby.

 

(e)                                  Payments.  All amounts due under this Section shall
be payable not later than ten Business Days after demand therefor.

 

(f)                                    Survival.  The agreements in this Section shall
survive the resignation of the Administrative Agent and the L/C Issuer, the
replacement of any Lender, the termination of the Commitments and the
repayment, satisfaction or discharge of all the other Obligations.

 

11.05                     Payments Set
Aside.

 

To
the extent that any payment by or on behalf of any Loan Party is made to the
Administrative Agent, the L/C Issuer or any Lender, or the Administrative
Agent, the L/C Issuer or any Lender exercises its right of setoff, and such
payment or the proceeds of such setoff or any part thereof is subsequently
invalidated, declared to be fraudulent or preferential, set aside or required
(including pursuant to any 

 

98

 

settlement
entered into by the Administrative Agent, the L/C Issuer or such Lender in its
discretion) to be repaid to a trustee, receiver or any other party, in
connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to
the extent of such recovery, the obligation or part thereof originally intended
to be satisfied shall be revived and continued in full force and effect as if
such payment had not been made or such setoff had not occurred, and (b) each
Lender and the L/C Issuer severally agrees to pay to the Administrative Agent
upon demand its applicable share (without duplication) of any amount so
recovered from or repaid by the Administrative Agent, plus interest
thereon from the date of such demand to the date such payment is made at a rate
per annum equal to the Federal Funds Rate from time to time in effect.  The obligations of the Lenders and the L/C
Issuer under clause (b) of the preceding sentence shall survive the
payment in full of the Obligations and the termination of this Agreement.

 

11.06                     Successors and
Assigns.

 

(a)                                  Successors and Assigns
Generally.  The
provisions of this Agreement and the other Loan Documents shall be binding upon
and inure to the benefit of the parties hereto and thereto and their respective
successors and assigns permitted hereby, except that the Borrower may not
assign or otherwise transfer any of its rights or obligations hereunder or
thereunder without the prior written consent of the Administrative Agent and
each Lender and no Lender may assign or otherwise transfer any of its rights or
obligations hereunder except (i) to an assignee in accordance with the
provisions of subsection (b) of this Section, (ii) by way of
participation in accordance with the provisions of subsection (d) of this Section or
(iii) by way of pledge or assignment of a security interest subject to the
restrictions of subsection (f) of this Section (and any other
attempted assignment or transfer by any party hereto shall be null and
void).  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 subsection (d) of this Section and,
to the extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent, the L/C Issuer and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

 

(b)                                 Assignments by Lenders.  Any Lender may at any time assign to one or
more assignees all or a portion of its rights and obligations under this
Agreement and the other Loan Documents (including all or a portion of its
Commitment and the Loans (including for purposes of this subsection (b),
participations in L/C Obligations and Swing Line Loans) at the time owing to
it), and shall be pro rata with respect to its Domestic Revolving Commitment
and Euro Revolving Commitment; provided that any such assignment shall
be subject to the following conditions:

 

(i)                                     Minimum Amounts.

 

(A)                              in the case of
an assignment of the entire remaining amount of the assigning Lender’s
Commitment and the Loans at the time owing to it or in the case of an
assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no
minimum amount need be assigned; and

 

(B)                                in any case not
described in subsection (b)(i)(A) of this Section, the aggregate amount of
the Commitment (which for this purpose includes Loans outstanding thereunder)
or, if the Commitment is not then in effect, the principal outstanding balance
of the Loans of the assigning Lender subject to each such assignment, determined
as of the date the Assignment and Assumption with respect to such assignment is
delivered to the Administrative Agent or, if “Trade Date” is specified in the
Assignment and Assumption, as of the Trade Date, shall not be less than
$5,000,000  unless each of the Administrative
Agent and, so long as no Event of Default has occurred and is continuing, the
Borrower otherwise consents (each such consent not to be unreasonably withheld
or 

 

99

 

delayed); provided, however, that concurrent assignments
to members of an Assignee Group and concurrent assignments from members of an
Assignee Group to a single assignee (or to an assignee and members of its
Assignee Group) will be treated as a single assignment for purposes of
determining whether such minimum amount has been met;

 

(ii)                                  Required Consents.  No consent shall be required for any
assignment except to the extent required by subsection (b)(i)(B) of this Section and,
in addition:

 

(A)                              the consent of
the Borrower (such consent not to be unreasonably withheld or delayed) shall be
required unless (1) an Event of Default has occurred and is continuing at
the time of such assignment or (2) such assignment is to a Lender, an
Affiliate of a Lender or an Approved Fund;

 

(B)                                the consent of
the Administrative Agent (such consent not to be unreasonably withheld or
delayed) shall be required for assignments if such assignment is to a Person
that is not a Lender, an Affiliate of such Lender or an Approved Fund with
respect to such Lender;

 

(C)                                the consent of
the L/C Issuer (such consent not to be unreasonably withheld or delayed) shall
be required for any assignment that increases the obligation of the assignee to
participate in exposure under one or more Letters of Credit (whether or not
then outstanding); and

 

(D)                               the consent of
the Swing Line Lender (such consent not to unreasonably withheld or delayed)
shall be required for any assignment in respect of the Revolving Commitment if
such assignment is to a Person that is not a Lender, an Affiliate of such
Lender or an Approved Fund with respect to such Lender.

 

(iii)                               Assignment and
Assumption.  The parties
to each assignment shall execute and deliver to the Administrative Agent an
Assignment and Assumption, together with a processing and recordation fee in
the amount of $3,500; provided, however, that the Administrative
Agent may, in its sole discretion, elect to wave such processing and
recordation fee in the case of any assignment. 
The assignee, if it is not a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire.

 

(iv)                              No Assignment
to Borrower.  No such
assignment shall be made to the Borrower or any of the Borrower’s Affiliates or
Subsidiaries.

 

(v)                                 No Assignment
to Natural Persons.  No such
assignment shall be made to a natural person.

 

Subject to acceptance and recording thereof by the Administrative Agent
pursuant to subsection (c) of this Section, from and after the effective
date specified in each Assignment and Assumption, the assignee thereunder shall
be a party to this Agreement and, to the extent of the interest assigned by
such Assignment and Assumption, 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 Assumption, be released from
its obligations under this Agreement (and, in the case of an Assignment and
Assumption 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 3.01, 3.04, 3.05
and 11.04 with respect to facts and circumstances occurring prior to the
effective date of such assignment.  Upon
request, the Borrower (at its expense) shall execute and deliver a Note to the
assignee 

 

100

 

Lender.  Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does
not comply with this subsection 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 subsection (d) of this Section.

 

(c)                                  Register.  The Administrative Agent, acting solely for
this purpose as an agent of the Borrower, shall maintain at the Administrative
Agent’s Office a copy of each Assignment and Assumption delivered to it and a
register for the recordation of the names and addresses of the Lenders, and the
Commitments of, and principal amounts of the Loans and L/C Obligations owing
to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, 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.

 

(d)                                 Participations.  Any Lender may at any time, without the
consent of, or notice to, the Borrower or the Administrative Agent, sell
participations to any Person (other than a natural person or the Borrower or
any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”)
in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans
(including such Lender’s participations in L/C Obligations and/or Swing Line
Loans) owing to it); provided that (i) such Lender’s obligations
under this Agreement shall remain unchanged, (ii) such Lender shall remain
solely responsible to the other parties hereto for the performance of such obligations
and (iii) the Borrower, the Administrative Agent, the other Lenders and
the L/C Issuer 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, waiver or other
modification described in clauses (i) through (vii) of the Section 11.01(a) that
affects such Participant.  Subject to
subsection (e) of this Section, the Borrower agrees that each Participant
shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05  to the same extent as if it were a Lender and had acquired
its interest by assignment pursuant to subsection (b) of this
Section.  To the extent permitted by law,
each Participant also shall be entitled to the benefits of Section 11.08  as though it were a Lender, provided such
Participant agrees to be subject to Section 2.13 as though it were
a Lender.

 

(e)                                  Limitation on Participant
Rights.  A Participant shall not be
entitled to receive any greater payment under Section 3.01 or 3.04  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 3.01 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 3.01(e) as though it were a
Lender.

 

(f)                                    Certain Pledges.  Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement
(including under its Note, if any) to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve
Bank; provided that no such pledge or assignment shall release such
Lender from any of its obligations hereunder or substitute any such pledgee or
assignee for such Lender as a party hereto.

 

(g)                                 Electronic Execution of
Assignments.  The words “execution,”
“signed,” “signature,” and words of like import in any Assignment and
Assumption shall be deemed to include electronic signatures 

 

101

 

or
the keeping of records in electronic form, each of which shall be of the same
legal effect, validity or enforceability as a manually executed signature or
the use of a paper-based recordkeeping system, as the case may be, to the
extent and as provided for in any applicable law, including the Federal
Electronic Signatures in Global and National Commerce Act, the New York State Electronic
Signatures and Records Act, or any other similar state laws based on the
Uniform Electronic Transactions Act

 

(h)                                 Resignation as L/C Issuer or
Swing Line Lender after Assignment.  Notwithstanding anything to the contrary
contained herein, if at any time Bank of America assigns all of its Commitment
and Loans pursuant to subsection (b) above, Bank of America may, (i) upon
thirty days’ notice to the Borrower and the Lenders, resign as L/C Issuer
and/or (ii) upon thirty days’ notice to the Borrower, resign as Swing Line
Lender.  In the event of any such
resignation as L/C Issuer or Swing Line Lender, the Borrower shall be entitled
to appoint from among the Lenders a successor L/C Issuer or Swing Line Lender
hereunder; provided, however, that no failure by the Borrower to
appoint any such successor shall affect the resignation of Bank of America as
L/C Issuer or Swing Line Lender, as the case may be.  If Bank of America resigns as L/C Issuer, it
shall retain all the rights, powers, privileges and duties of the L/C Issuer
hereunder with respect to all Letters of Credit outstanding as of the effective
date of its resignation as L/C Issuer and all L/C Obligations with respect
thereto (including the right to require the Lenders to make Base Rate Loans or
fund risk participations in Unreimbursed Amounts pursuant to Section 2.03(c)).  If Bank of America resigns as Swing Line
Lender, it shall retain all the rights of the Swing Line Lender provided for
hereunder with respect to Swing Line Loans made by it and outstanding as of the
effective date of such resignation, including the right to require the Lenders
to make Base Rate Loans or fund risk participations in outstanding Swing Line
Loans pursuant to Section 2.04(c). 
Upon the appointment of a successor L/C Issuer and/or Swing Line Lender,
(1) such successor shall succeed to and become vested with all of the
rights, powers, privileges and duties of the retiring L/C Issuer or Swing Line
Lender, as the case may be and (2) the successor L/C Issuer shall issue
letters of credit in substitution for the Letters of Credit, if any,
outstanding at the time of such succession or make other arrangements
satisfactory to Bank of America to effectively assume the obligations of Bank
of America with respect to such Letters of Credit.

 

11.07                     Treatment of
Certain Information; Confidentiality.

 

Each
of the Administrative Agent, the Lenders and the L/C Issuer agrees to maintain
the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its Affiliates and to its and its
Affiliates’ respective partners, directors, officers, employees, agents,
advisors and representatives and to any
direct or indirect contractual counterparty (or such contractual counterparty’s
professional advisor) under any Swap Contract relating to Loans outstanding
under this Agreement (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (b) to
the extent requested by any regulatory authority purporting to have
jurisdiction over it (including any self-regulatory authority, such as the
National Association of Insurance Commissioners), (c) to the extent
required by applicable laws or regulations or by any subpoena or similar legal
process, (d) to any other party hereto, (e) in connection with the
exercise of any remedies hereunder or under any other Loan Document or any
action or proceeding relating to this Agreement or any other Loan Document or
the enforcement of rights hereunder or thereunder, (f) subject to an
agreement containing provisions substantially the same as those of this
Section, to (i) any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this
Agreement or (ii) any actual or prospective counterparty (or its advisors)
to any swap or derivative transaction relating to a Loan Party and its
obligations, (g) with the consent of the Borrower or (h) to the
extent such Information (x) becomes publicly available other than as a
result of a breach of this Section or (y) becomes available to the
Administrative Agent, any Lender, the L/C Issuer or any of their respective
Affiliates on a nonconfidential basis from a source other than the Borrower.

 

102

 

For
purposes of this Section, “Information” means all information received
from a Loan Party or any Subsidiary relating to the Loan Parties or any
Subsidiary or any of their respective businesses, other than any such
information that is available to the Administrative Agent, any Lender or the
L/C Issuer on a nonconfidential basis prior to disclosure by such Loan Party or
any Subsidiary, provided that, in the case of information received from
a Loan Party or any Subsidiary after the date hereof, such information is
clearly identified at the time of delivery as confidential.  Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered
to have complied with its obligation to do so if such Person has exercised the
same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

 

Each
of the Administrative Agent, the Lenders and the L/C Issuer acknowledges that (a) the
Information may include material non-public information concerning the Borrower
or a Subsidiary, as the case may be, (b) it has developed compliance
procedures regarding the use of material non-public information and (c) it
will handle such material non-public information in accordance with applicable
Law, including United States Federal and state securities Laws.

 

11.08                     Set-off.

 

If
an Event of Default shall have occurred and be continuing, each Lender, the L/C
Issuer and each of their respective Affiliates is hereby authorized at any time
and from time to time, after obtaining the prior written consent of the
Administrative Agent, to the fullest extent permitted by applicable law, to set
off and apply any and all deposits (general or special, time or demand,
provisional or final, in whatever currency) at any time held and other
obligations (in whatever currency) at any time owing by such Lender, the L/C
Issuer or any such Affiliate to or for the credit or the account of the
Borrower or any other Loan Party against any and all of the obligations of the
Borrower or such Loan Party now or hereafter existing under this Agreement or
any other Loan Document to such Lender or the L/C Issuer, irrespective of whether
or not such Lender or the L/C Issuer shall have made any demand under this
Agreement or any other Loan Document and although such obligations of the
Borrower or such Loan Party may be contingent or unmatured or are owed to a
branch or office of such Lender or the L/C Issuer different from the branch or
office holding such deposit or obligated on such indebtedness.  The rights of each Lender, the L/C Issuer and
their respective Affiliates under this Section are in addition to other
rights and remedies (including other rights of setoff) that such Lender, the
L/C Issuer or their respective Affiliates may have.  Each Lender and the L/C Issuer agrees to
notify the Borrower and the Administrative Agent promptly after any such setoff
and application, provided that the failure to give such notice shall not
affect the validity of such setoff and application.

 

11.09                     Interest Rate
Limitation.

 

Notwithstanding
anything to the contrary contained in any Loan Document, the interest paid or
agreed to be paid under the Loan Documents shall not exceed the maximum rate of
non-usurious interest permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender
shall receive interest in an amount that exceeds the Maximum Rate, the excess
interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the Borrower. 
In determining whether the interest contracted for, charged, or received
by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person
may, to the extent permitted by applicable Law, (a) characterize any
payment that is not principal as an expense, fee, or premium rather than
interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of
interest throughout the contemplated term of the Obligations hereunder.

 

103

 

11.10                     Counterparts;
Integration; Effectiveness.

 

This
Agreement may be executed in counterparts (and by different parties hereto in
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract.  This Agreement and the other Loan Documents
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.  Except as provided in Section 5.01,
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 that, when taken together, bear the signatures of each of
the other parties hereto.  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.

 

11.11                     Survival of
Representations and Warranties.

 

All
representations and warranties made hereunder and in any other Loan Document or
other document delivered pursuant hereto or thereto or in connection herewith
or therewith shall survive the execution and delivery hereof and thereof.  Such representations and warranties have been
or will be relied upon by the Administrative Agent and each Lender, regardless
of any investigation made by the Administrative Agent or any Lender or on their
behalf and notwithstanding that the Administrative Agent or any Lender may have
had notice or knowledge of any Default at the time of any Credit Extension, and
shall continue in full force and effect as long as any Loan or any other
Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit
shall remain outstanding.

 

11.12                     Severability.

 

If
any provision of this Agreement or the other Loan Documents is held to be
illegal, invalid or unenforceable, (a) the legality, validity and
enforceability of the remaining provisions of this Agreement and the other Loan
Documents shall not be affected or impaired thereby and (b) the parties
shall endeavor in good faith negotiations to replace the illegal, invalid or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

11.13                     Replacement of
Lenders.

 

If
(i) any Lender requests compensation under Section 3.04, (ii) 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 3.01,
or (iii) a Lender (a “Non-Consenting Lender”) does not consent to a
proposed change, waiver, discharge or termination with respect to any Loan
Document that has been approved by the Required Lenders, the Required Domestic
Lenders or the Required Euro Lenders, as appropriate, as provided in Section 11.01
but requires unanimous consent of all Lenders or all Lenders directly affected
thereby (as applicable) and, or (iv) any Lender is a Defaulting Lender,
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, and consents required by, Section 11.06), all of its
interests, rights and obligations under this Agreement and the related Loan
Documents to an assignee that shall assume such obligations (which assignee may
be another Lender, if a Lender accepts such assignment), provided that:

 

(a)                                  the Borrower shall have paid
to the Administrative Agent the assignment fee specified in Section 11.06(b);

 

104

 

 

(b)                                 such Lender shall have
received payment of an amount equal to the outstanding principal of its Loans
and, with respect to Domestic Lenders, L/C Advances, accrued interest thereon,
accrued fees and all other amounts payable to it hereunder and under the other
Loan Documents (including any amounts under Section 3.05) 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);

 

(c)                                  in the case of any such
assignment resulting from a claim for compensation under Section 3.04
or payments required to be made pursuant to Section 3.01, such
assignment will result in a reduction in such compensation or payments
thereafter;

 

(d)                                 such assignment does not
conflict with applicable Laws; and

 

(e)                                  in the case of
any such assignment resulting from a Non-Consenting Lender’s failure to consent
to a proposed change, waiver, discharge or termination with respect to any Loan
Document, the applicable replacement bank, financial institution or Fund
consents to the proposed change, waiver, discharge or termination; provided
that the failure by such Non-Consenting Lender to execute and deliver an
Assignment and Assumption shall not impair the validity of the removal of such
Non-Consenting Lender and the mandatory assignment of such Non-Consenting
Lender’s Commitments and outstanding Loans and, with respect to the Domestic
Lenders, participations in L/C Obligations and Swing Line Loans pursuant to
this Section 11.13 shall nevertheless be effective without the
execution by such Non-Consenting Lender of an Assignment and Assumption.

 

A
Lender shall not be required to make any such assignment or 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.

 

11.14                     Governing Law;
Jurisdiction; Etc.

 

(a)                                  GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401
AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW
YORK) WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

 

(b)                                 SUBMISSION TO JURISDICTION.  THE BORROWER AND EACH OTHER LOAN PARTY
IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE
NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW
YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF
NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE
PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN
RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN
SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE 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 

 

105

 

PROVIDED
BY LAW.  NOTHING IN THIS AGREEMENT OR IN
ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT,
ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE
BORROWER OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY
JURISDICTION.

 

(c)                                  WAIVER OF VENUE.  THE BORROWER AND EACH OTHER LOAN PARTY
IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN
PARAGRAPH (B) OF THIS SECTION. 
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 

(d)                                 SERVICE OF
PROCESS.  EACH PARTY HERETO IRREVOCABLY
CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 11.02.  NOTHING IN THIS AGREEMENT WILL AFFECT THE
RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
APPLICABLE LAW.

 

11.15                     Waiver of Right
to Trial by Jury.

 

EACH
PARTY HERETO HEREBY IRREVOCABLY 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 ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON 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
AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

 

11.16                     USA PATRIOT Act
Notice.

 

Each
Lender that is subject to the Act (as hereinafter defined) and the
Administrative Agent (for itself and not on behalf of any Lender) hereby
notifies the Borrower that pursuant to the requirements of the USA Patriot Act
(Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”),
it is required to obtain, verify and record information that identifies the
Borrower, which information includes the name and address of the Borrower and
other information that will allow such Lender or the Administrative Agent, as
applicable, to identify the Borrower in accordance with the Act.

 

11.17                     No Advisory or
Fiduciary Relationship.

 

In
connection with all aspects of each transaction contemplated hereby (including
in connection with any amendment, waiver or other modification hereof or of any
other Loan Document, the Borrower

 

106

 

acknowledges
and agrees, and acknowledges its
Affiliates’ understanding, that: (a)(i) the arranging and other services
regarding this Agreement provided by the Administrative Agent and BAS, are arm’s-length
commercial transactions between the Borrower and its Affiliates, on the one hand, and the Administrative Agent and
BAS, on the other hand, (ii) the Borrower
has consulted its own legal, accounting, regulatory and tax advisors to the
extent it has deemed appropriate, and (iii) the
Borrower is capable of evaluating, and understands and accepts, the terms,
risks and conditions of the transactions contemplated hereby and by the other
Loan Documents; (b)(i) the Administrative Agent and BAS each
is and has been acting solely as a principal and, except as expressly agreed in
writing by the relevant parties, has not been, is not and will not be acting as
an advisor, agent or fiduciary, for the Borrower or any of Affiliates or any
other Person and (ii) neither the
Administrative Agent nor BAS has any obligation to the Borrower or any of its
Affiliates with respect to the transactions contemplated hereby except those
obligations expressly set forth herein and in the other Loan Documents; and (c) the Administrative Agent and BAS and
their respective Affiliates may be engaged in a broad range of transactions
that involve interests that differ from those of the Borrower and its
Affiliates, and neither the Administrative Agent nor BAS has any obligation to
disclose any of such interests to the Borrower or its Affiliates.  To the fullest extent permitted by law, the
Borrower hereby waives and releases, any claims that it may have against the
Administrative Agent or BAS with respect to any breach or alleged breach of
agency or fiduciary duty in connection with any aspect of any transaction
contemplated hereby.

 

11.18                     Parallel Debt.

 

(a)                                  Each Lender, the Administrative Agent,
the Swing Line Lender and the L/C Issuer (collectively, for purposes of this Section 11.18
only, the “Finance Parties”) hereby agree that:

 

(i)                                     the total amount due and
payable as Parallel Debt (as created and defined in the Share Pledge Agreement
(as defined in Section 11.18(d) below) under Clause 2 of the
Share Pledge Agreement (as defined in Section 11.18(d) below)
shall be decreased to the extent that any amount is irreversibly
(onaantastbaar) paid to and received by the Finance Parties or any of them to
reduce the total amount due and payable in respect of the Principal Obligations
(as this term is defined in the Share Pledge Agreement (as defined in Section 11.18(d) below)),
as if such amount were received by the Administrative Agent in payment of the
Parallel Debt (as created and defined in the Share Pledge Agreement (as defined
in Section 11.18(d) below); and

 

(ii)                                  the total amount due and
payable in respect of the Principal Obligations (as this term is defined in the
Share Pledge Agreement (as defined in Section 11.18(d) below))
shall be decreased to the extent that any amount is irreversibly
(onaantastbaar) paid to and received by the Administrative Agent in payment of
the Parallel Debt (as created and defined in the Share Pledge Agreement (as
defined in Section 11.18(d) below), as if such amount were
received by the Finance Parties or any of them in payment of the corresponding
Principal Obligations (as this term is defined in the Share Pledge Agreement
(as defined in Section 11.18(d) below)). The Administrative
Agent undertakes to give effect to the preceding sentence by application of any
amount so received in payment of the Parallel Debt (as created and defined in
the Share Pledge Agreement (as defined in Section 11.18(d) below)
in accordance with the terms and conditions of the Loan Documents, as if such
amount were received in payment of the corresponding Principal Obligations (as
this term is defined in the Share Pledge Agreement (as defined in Section 11.18(d) below)).

 

(b)                                 This Section 11.18
and any dispute, controversy, proceedings or claim of whatever nature arising
out of or in any way relating thereto shall be governed by and construed in
accordance with the laws of the Netherlands.

 

107

 

(c)                                  Each of the parties hereto
irrevocably agrees that all disputes arising out of this Section 11.18 shall be
submitted in first instance to the competent court at Amsterdam, the
Netherlands. Nothing in the preceding sentence shall limit the Administrative
Agent’s right to bring proceedings against Knoll Overseas, Inc. in any
other court or competent jurisdiction.

 

(d)                                 For the purposes of this Section 11.18
only, the term “Share Pledge Agreement” shall mean the notarial deed of pledge of
shares entered into by no later than the date provided in Section 7.12(b) between
Knoll Overseas, Inc as the pledgor, Bank of America as the pledgee, and
Knoll Europe as the company.

 

[SIGNATURE PAGES FOLLOW]

 

108

 

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

 

	
  BORROWER:

  	
  KNOLL, INC.,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Barry L. McCabe

  
	
   

  	
  Name:

  	
  Barry L. McCabe

  
	
   

  	
  Title:

  	
  Senior
  Vice President & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  GUARANTORS:

  	
  SPINNEYBECK
  ENTERPRISES, INC.,

  
	
   

  	
  a
  New York corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Barry L. McCabe

  
	
   

  	
  Name:

  	
  Barry L. McCabe

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  KNOLL
  OVERSEAS, INC.,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Barry L. McCabe

  
	
   

  	
  Name:

  	
  Barry L. McCabe

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

KNOLL, INC.

CREDIT AGREEMENT

 

 

	
  ADMINISTRATIVE

  	
   

  
	
  AGENT:

  	
  BANK
  OF AMERICA, N.A.,

  
	
   

  	
  as
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charlene Wright-Jones

  
	
   

  	
  Name:

  	
  Charlene Wright-Jones

  
	
   

  	
  Title:

  	
  Assistant
  Vice President

  

 

KNOLL, INC.

CREDIT AGREEMENT

 

 

	
  LENDERS:

  	
  BANK
  OF AMERICA, N.A.,

  
	
   

  	
  as
  a Domestic Lender, Euro Lender, Swing Line Lender and L/C

  
	
   

  	
  Issuer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles R. Dickerson

  
	
   

  	
  Name:

  	
  Charles R. Dickerson

  
	
   

  	
  Title:

  	
  Managing
  Director

  

 

KNOLL, INC.

CREDIT AGREEMENT

 

 

	
   

  	
  CITIZENS
  BANK,

  
	
   

  	
  as
  a Domestic Lender and a Euro Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Devon Starsk

  
	
   

  	
  Name:

  	
  Devon Starsk

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  

 

KNOLL, INC.

CREDIT AGREEMENT

 

 

	
   

  	
  HSBC
  BANK USA, NATIONAL ASSOCIATION,

  
	
   

  	
  as
  a Domestic Lender and a Euro Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Susan A. Waters

  
	
   

  	
  Name:

  	
  Susan A. Waters

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

KNOLL, INC.

CREDIT AGREEMENT

 

 

	
   

  	
  FIFTH
  THIRD BANK,

  
	
   

  	
  as
  a Domestic Lender and a Euro Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/   Christopher C. Motley

  
	
   

  	
  Name:

  	
  Christopher C. Motley

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

KNOLL, INC.

CREDIT AGREEMENT

 

 

 

	
   

  	
  TD
  BANKNORTH, N.A.,

  
	
   

  	
  as
  a Domestic Lender and a Euro Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Charles A. Walker

  
	
   

  	
  Name:

  	
  Charles
  A. Walker

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  

 

KNOLL, INC.

CREDIT AGREEMENT

 

 

	
   

  	
  CITIBANK,
  N.A.,

  
	
   

  	
  as
  a Domestic Lender and a Euro Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/   Charles J. Margiotti III

  
	
   

  	
  Name:

  	
  Charles
  J. Margiotti III

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

KNOLL, INC.

CREDIT AGREEMENT

 

 

	
   

  	
  UNION
  BANK OF CALIFORNIA, N.A.,

  
	
   

  	
  as
  a Domestic Lender and a Euro Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Christopher Freeman

  
	
   

  	
  Name:

  	
  Christopher
  Freeman

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

KNOLL, INC.

CREDIT AGREEMENT

 

 

	
   

  	
  THE
  BANK OF NOVA SCOTIA,

  
	
   

  	
  as
  a Domestic Lender and a Euro Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Brian S. Allen

  
	
   

  	
  Name:

  	
  Brian
  S. Allen

  
	
   

  	
  Title:

  	
  Managing
  Director

  

 

KNOLL, INC.

CREDIT AGREEMENT

 

 

	
   

  	
  MANUFACTURERS
  AND TRADERS TRUST COMPANY,

  
	
   

  	
  as
  a Domestic Lender and a Euro Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Brian J. Sohocki

  
	
   

  	
  Name:

  	
  Brian
  J. Sohocki

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

KNOLL, INC.

CREDIT AGREEMENT

 

 

	
   

  	
  MIZUHO
  CORPORATE BANK, LTD.,

  
	
   

  	
  as
  a Domestic Lender and a Euro Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  James Fayeh

  
	
   

  	
  Name:

  	
  James
  Fayeh

  
	
   

  	
  Title:

  	
  Deputy
  General Manager

  

 

KNOLL, INC.

CREDIT AGREEMENT

 

 

	
   

  	
  NATIONAL
  CITY BANK,

  
	
   

  	
  as
  a Domestic Lender and a Euro Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Eleanor Orlando

  
	
   

  	
  Name:

  	
  Eleanor
  Orlando

  
	
   

  	
  Title:

  	
  Corporate
  Banking Officer

  

 

KNOLL, INC.

CREDIT AGREEMENT

 

 

	
   

  	
  SOVEREIGN
  BANK,

  
	
   

  	
  as
  a Domestic Lender and a Euro Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Alfred J. Doody

  
	
   

  	
  Name:

  	
  Alfred
  J. Doody

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  

 

KNOLL, INC.

CREDIT AGREEMENT

 

 

	
   

  	
  THE
  NORTHERN TRUST COMPANY,

  
	
   

  	
  as
  a Domestic Lender and a Euro Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Roger McDougal

  
	
   

  	
  Name:

  	
  Roger
  McDougal

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

KNOLL, INC.

CREDIT AGREEMENT

 

 

	
   

  	
  PNC
  BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as
  a Domestic Lender and a Euro Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Meredith Jermann

  
	
   

  	
  Name:

  	
  Meredith
  Jermann

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

KNOLL, INC.

CREDIT AGREEMENT

 

 

 

	
   

  	
  BAYERISCHE
  LANDESBANK, NEW YORK BRANCH,

  
	
   

  	
  as
  a Domestic Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Georgina Fiordalisi, CFA

  
	
   

  	
  Name:

  	
  Georgina
  Fiordalisi, CFA

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Annette Schmidt

  
	
   

  	
  Name:

  	
  Annette
  Schmidt

  
	
   

  	
  Title:

  	
  First
  Vice President

  

 

KNOLL, INC.

CREDIT AGREEMENT

 

 

	
   

  	
  FIRST
  COMMONWEALTH BANK,

  
	
   

  	
  as
  a Domestic Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Stephen J. Orban

  
	
   

  	
  Name:

  	
  Stephen
  J. Orban

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

KNOLL, INC.

CREDIT AGREEMENT

 

 

	
   

  	
  PEOPLE’S
  UNITED BANK,

  
	
   

  	
  as
  a Domestic Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  George F Paik

  
	
   

  	
  Name:

  	
  George
  F Paik

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

KNOLL, INC.

CREDIT AGREEMENT

 

 

	
   

  	
  UNITED
  OVERSEAS BANK LIMITED,

  
	
   

  	
  NEW
  YORK AGENCY,

  
	
   

  	
  as
  a Domestic Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  George Lim

  
	
   

  	
  Name:

  	
  George
  Lim

  
	
   

  	
  Title:

  	
  SVP &
  GM

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Mario Sheng

  
	
   

  	
  Name:

  	
  Mario
  Sheng

  
	
   

  	
  Title:

  	
  AVP

  

 

KNOLL, INC.

CREDIT AGREEMENT

 

 

	
   

  	
  WEBSTER
  BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as
  a Domestic Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  John Gilsenan

  
	
   

  	
  Name:

  	
  John
  Gilsenan

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

 

 

Schedule 1.01(a)

 

Mandatory Cost Formulae

 

MANDATORY COST FORMULAE

 

1.                                       The Mandatory
Cost (to the extent applicable) is an addition to the interest rate to
compensate Lenders for the cost of compliance with:

 

(a)                                  the
requirements of the Bank of England and/or the Financial Services Authority
(or, in either case, any other authority which replaces all or any of its
functions); or

 

(b)                                 the
requirements of the European Central Bank.

 

2.                                       On the first
day of each Interest Period (or as soon as possible thereafter) the
Administrative Agent shall calculate, as a percentage rate, a rate (the “Additional
Cost Rate”) for each Lender, in accordance with the paragraphs set out
below.  The Mandatory Cost will be
calculated by the Administrative Agent as a weighted average of the Lenders’
Additional Cost Rates (weighted in proportion to the percentage participation
of each Lender in the relevant Loan) and will be expressed as a percentage rate
per annum.  The Administrative Agent
will, at the request of the Borrower or any Lender, deliver to the Borrower or
such Lender as the case may be, a statement setting forth the calculation of
any Mandatory Cost.

 

3.                                       The Additional
Cost Rate for any Lender lending from a Lending Office in a Participating
Member State will be the percentage notified by that Lender to the
Administrative Agent.  This percentage
will be certified by such Lender in its notice to the Administrative Agent to
be its reasonable determination of the cost (expressed as a percentage of such
Lender’s participation in all Loans made from such Lending Office) of complying
with the minimum reserve requirements of the European Central Bank in respect
of Loans made from that Lending Office.

 

4.                                       The Additional
Cost Rate for any Lender lending from a Lending Office in the United Kingdom
will be calculated by the Administrative Agent as follows:

 

(a)                                  in relation to
any Loan in Sterling:

 

	
    AB+C(B-D)+E
  x 0.01

   

  	
   

  	
  per
  cent per annum 

  
	
    100
  - (A+C)

  	
   

  

 

(b)                                 in relation to
any Loan in any currency other than Sterling:

 

	
  E x 0.01

   

  	
   

  	
  per
  cent per annum

  
	
  300

  	
   

  

 

Where:

 

 

“A”                          is the percentage of
Eligible Liabilities (assuming these to be in excess of any stated minimum)
which that Lender is from time to time required to maintain as an interest free
cash ratio deposit with the Bank of England to comply with cash ratio
requirements.

 

“B”                            is the percentage rate of
interest (excluding the Applicable Rate, the Mandatory Cost and any interest
charged on overdue amounts pursuant to the first sentence of Section 2.08(b) and,
in the case of interest (other than on overdue amounts) charged at the Default
Rate, without counting any increase in interest rate effected by the charging
of the Default Rate) payable for the relevant Interest Period of such Loan.

 

“C”                            is the percentage (if any)
of Eligible Liabilities which that Lender is required from time to time to
maintain as interest bearing Special Deposits with the Bank of England.

 

“D”                           is the percentage rate per
annum payable by the Bank of England to the Administrative Agent on interest
bearing Special Deposits.

 

“E”                             is designed to compensate
Lenders for amounts payable under the Fees Rules and is calculated by the
Administrative Agent as being the average of the most recent rates of charge
supplied by the Lenders to the Administrative Agent pursuant to paragraph 7
below and expressed in pounds per £1,000,000.

 

5.                                       For the
purposes of this Schedule:

 

(a)                                  “Eligible Liabilities”
and “Special Deposits” have the meanings given to them from time to time
under or pursuant to the Bank of England Act 1998 or (as may be appropriate) by
the Bank of England;

 

(b)                                 “Fees Rules” means
the rules on periodic fees contained in the FSA Supervision Manual or such
other law or regulation as may be in force from time to time in respect of the
payment of fees for the acceptance of deposits;

 

(c)                                  “Fee Tariffs” means
the fee tariffs specified in the Fees Rules under the activity group A.1
Deposit acceptors (ignoring any minimum fee or zero rated fee required pursuant
to the Fees Rules but taking into account any applicable discount rate);
and

 

(d)                                 “Tariff Base” has the
meaning given to it in, and will be calculated in accordance with, the Fees
Rules.

 

6.                                       In application
of the above formulae, A, B, C and D will be included in the formulae as
percentages (i.e. 5% will be included in the formula as 5 and not as
0.05).  A negative result obtained by
subtracting D from B shall be taken as zero. 
The resulting figures shall be rounded to four decimal places.

 

7.                                       If requested by
the Administrative Agent or the Borrower, each Lender with a Lending Office in
the United Kingdom or a Participating Member State shall, as soon as
practicable after publication by the Financial Services Authority, supply to
the Administrative Agent and the 

 

 

Borrower,
the rate of charge payable by such Lender to the Financial Services Authority
pursuant to the Fees Rules in respect of the relevant financial year of
the Financial Services Authority (calculated for this purpose by such Lender as
being the average of the Fee Tariffs applicable to such Lender for that
financial year) and expressed in pounds per £1,000,000 of the Tariff Base of
such Lender.

 

8.                                       Each Lender
shall supply any information required by the Administrative Agent for the
purpose of calculating its Additional Cost Rate.  In particular, but without limitation, each
Lender shall supply the following information in writing on or prior to the
date on which it becomes a Lender:

 

(a)                                  the jurisdiction of the
Lending Office out of which it is making available its participation in the
relevant Loan; and

 

(b)                                 any other information that
the Administrative Agent may reasonably require for such purpose.

 

Each
Lender shall promptly notify the Administrative Agent in writing of any change
to the information provided by it pursuant to this paragraph.

 

9.                                       The percentages
of each Lender for the purpose of A and C above and the rates of charge of each
Lender for the purpose of E above shall be determined by the Administrative
Agent based upon the information supplied to it pursuant to paragraphs 7
and 8 above and on the assumption that, unless a Lender notifies the
Administrative Agent to the contrary, each Lender’s obligations in relation to
cash ratio deposits and Special Deposits are the same as those of a typical
bank from its jurisdiction of incorporation with a Lending Office in the same
jurisdiction as its Lending Office.

 

10.                                 The Administrative Agent
shall have no liability to any Person if such determination results in an
Additional Cost Rate which over- or under-compensates any Lender and shall be
entitled to assume that the information provided by any Lender pursuant to paragraphs
3, 7 and 8 above is true and correct in all respects.

 

11.                                 The Administrative Agent
shall distribute the additional amounts received as a result of the Mandatory
Cost to the Lenders on the basis of the Additional Cost Rate for each Lender
based on the information provided by each Lender pursuant to paragraphs 3,
7 and 8 above.

 

12.                                 Any determination by the
Administrative Agent pursuant to this Schedule in relation to a formula,
the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender
shall, in the absence of manifest error, be conclusive and binding on all
parties hereto.

 

13.                                 The Administrative Agent may
from time to time, after consultation with the Borrower and the Lenders,
determine and notify to all parties any amendments which are required to be
made to this Schedule in order to comply with any change in law,
regulation or any requirements from time to time imposed by the Bank of
England, the Financial Services Authority or the European Central Bank (or, in
any case, any other authority which replaces all or any of its functions) and
any such determination shall, in the absence of manifest error, be conclusive
and binding on all parties hereto.

 

 

Schedule 1.01(b)

 

Existing Letters of Credit

 

	
  Letter
  of

  Credit No.

  	
   

  	
  Issuer

  	
   

  	
  Outstanding

  Amount

  	
   

  	
  Date of Issuance

  	
   

  	
  Expiration Date

  	
   

  	
  Beneficiary

  
	
  68017454

  	
   

  	
  Bank
  of America

  	
   

  	
  $

  	
  3,350,000

  	
   

  	
  February 27,
  2007

  	
   

  	
  February 28,
  2008

  	
   

  	
  The
  Travelers Indemnity Company

  
	
  68014407

  	
   

  	
  Bank
  of America

  	
   

  	
  $

  	
  187,348.45

  	
   

  	
  August 21,
  2006

  	
   

  	
  August 31,
  2007

  	
   

  	
  Bank
  of New York

  

 

 

Schedule 2.01

 

Commitments and Applicable Percentages

 

	
  Lender

  	
   

  	
  Domestic

  Revolving

  Commitment

  	
   

  	
  Applicable

  Percentage

  	
   

  	
  Euro Revolving

  Commitment

  	
   

  	
  Applicable

  Percentage

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
  $

  	
  55,000,000.00

  	
   

  	
  11.000000000

  	
  %

  	
  $

  	
  20,000,000.00

  	
   

  	
  13.333333333

  	
  %

  
	
  Citizens Bank

  	
   

  	
  $

  	
  50,000,000.00

  	
   

  	
  10.000000000

  	
  %

  	
  $

  	
  18,500,000.00

  	
   

  	
  12.333333333

  	
  %

  
	
  HSBC Bank USA, National Association

  	
   

  	
  $

  	
  50,000,000.00

  	
   

  	
  10.000000000

  	
  %

  	
  $

  	
  18,500,000.00

  	
   

  	
  12.333333333

  	
  %

  
	
  Fifth Third Bank

  	
   

  	
  $

  	
  35,000,000.00

  	
   

  	
  7.000000000

  	
  %

  	
  $

  	
  12,750,000.00

  	
   

  	
  8.500000000

  	
  %

  
	
  TD Banknorth, N.A.

  	
   

  	
  $

  	
  35,000,000.00

  	
   

  	
  7.000000000

  	
  %

  	
  $

  	
  12,750,000.00

  	
   

  	
  8.500000000

  	
  %

  
	
  Citibank, N.A.

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  	
  5.000000000

  	
  %

  	
  $

  	
  10,000,000.00

  	
   

  	
  6.666666667

  	
  %

  
	
  Union Bank of California, N.A.

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  	
  5.000000000

  	
  %

  	
  $

  	
  10,000,000.00

  	
   

  	
  6.666666667

  	
  %

  
	
  The Bank of Nova Scotia

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  	
  4.000000000

  	
  %

  	
  $

  	
  7,500,000.00

  	
   

  	
  5.000000000

  	
  %

  
	
  Manufacturers and Traders Trust Company

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  	
  4.000000000

  	
  %

  	
  $

  	
  7,500,000.00

  	
   

  	
  5.000000000

  	
  %

  
	
  Mizuho Corporate Bank, Ltd.

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  	
  4.000000000

  	
  %

  	
  $

  	
  7,500,000.00

  	
   

  	
  5.000000000

  	
  %

  
	
  National City Bank

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  	
  4.000000000

  	
  %

  	
  $

  	
  7,500,000.00

  	
   

  	
  5.000000000

  	
  %

  
	
  Sovereign Bank

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  	
  4.000000000

  	
  %

  	
  $

  	
  7,500,000.00

  	
   

  	
  5.000000000

  	
  %

  
	
  The Northern Trust Company

  	
   

  	
  $

  	
  15,000,000.00

  	
   

  	
  3.000000000

  	
  %

  	
  $

  	
  5,000,000.00

  	
   

  	
  3.333333333

  	
  %

  
	
  PNC Bank, National Association

  	
   

  	
  $

  	
  15,000,000.00

  	
   

  	
  3.000000000

  	
  %

  	
  $

  	
  5,000,000.00

  	
   

  	
  3.333333333

  	
  %

  
	
  Bayerische Landesbank, New York Branch

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  	
  5.000000000

  	
  %

  	
  $

  	
  0.00

  	
   

  	
  0.000000000

  	
  %

  
	
  First Commonwealth Bank

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  	
  4.000000000

  	
  %

  	
  $

  	
  0.00

  	
   

  	
  0.000000000

  	
  %

  
	
  People’s United Bank

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  	
  4.000000000

  	
  %

  	
  $

  	
  0.00

  	
   

  	
  0.000000000

  	
  %

  
	
  United Overseas Bank Limited, New York Agency

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  	
  4.000000000

  	
  %

  	
  $

  	
  0.00

  	
   

  	
  0.000000000

  	
  %

  
	
  Webster Bank, National Association

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  	
  2.000000000

  	
  %

  	
  $

  	
  0.00

  	
   

  	
  0.000000000

  	
  %

  
	
  TOTAL

  	
   

  	
  $

  	
  500,000,000.00

  	
   

  	
  100.000000000

  	
  %

  	
  $

  	
  150,000,000.00

  	
   

  	
  100.000000000

  	
  %

  

 

 

Schedule 6.01

 

Good Standing of Certain Foreign Subsidiaries

 

Foreign
Subsidiaries may from time to time fail to be in good standing but not with any
consequence that is reasonably likely to have a Material Adverse Effect.

 

 

 

Schedule 6.02

 

Authorizations

 

None.

 

 

Schedule 6.04

 

Governmental Approvals

 

None.

 

 

Schedule 6.05(a)

 

Material Liabilities Not Reflected in Balance Sheet

 

None.

 

 

Schedule 6.07

 

Intellectual Property Rights

 

U.S. COPYRIGHTS OWNED BY BORROWER

 

Registered
Copyrights

 

	
  Title

  	
   

  	
  Registration

  No.

  	
   

  	
  Registration

  Date

  
	
  JAHNE
  BARNES DESING LABYRINTH

  	
   

  	
  VAu421664

  	
   

  	
  5/8/98

  
	
  PEANO
  JHANE BARNES DESIGN

  	
   

  	
  VAu421663

  	
   

  	
  5/8/98

  
	
  JAHNE
  BARNES DESIGN WALKWAY

  	
   

  	
  VAu421662

  	
   

  	
  5/8/98

  
	
  JHANE
  BARNES DESIGN HILBERT

  	
   

  	
  VAu421661

  	
   

  	
  5/8/98

  

 

Pending
Copyright Applications for Registration

 

None.

 

1

 

 

PATENTS OWNED BY BORROWER

 

Issued
U.S. Patents

 

	
  Patent
  owned by the Borrower - Description

  	
   

  	
  Patent No.

  	
   

  	
  Issue Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D535830

  	
   

  	
  1/30/07

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D535112

  	
   

  	
  1/16/07

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TABLE
  BASE

  	
   

  	
  D528829

  	
   

  	
  9/26/06

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DESK
  LAMP

  	
   

  	
  D522161

  	
   

  	
  5/30/06

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D520769

  	
   

  	
  5/16/06

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TABLE
  BASE

  	
   

  	
  D515851

  	
   

  	
  2/28/06

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CART

  	
   

  	
  D510168

  	
   

  	
  9/27/05

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HEIGHT
  ADJUSTMENT MECHANISM FOR A CHAIR

  	
   

  	
  6824218

  	
   

  	
  11/30/04

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ERGONOMIC
  UTILITY CHART

  	
   

  	
  6767019

  	
   

  	
  7/27/04

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CART

  	
   

  	
  D493019

  	
   

  	
  7/13/04

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CABLE
  CONTROL WITH OVERLAOD PROTECTION DEVICE

  	
   

  	
  6742843

  	
   

  	
  6/1/04

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KEYBOARD
  SUPPORT WITH RETRACTABLE AUXILIARY SUPPORT PLATFORMS

  	
   

  	
  6682038

  	
   

  	
  1/27/04

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MODULAR
  BI-FOLD DOOR

  	
   

  	
  6681532

  	
   

  	
  1/27/04

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WORKSURFACE

  	
   

  	
  D479417

  	
   

  	
  9/9/03

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HINGED
  FOR AN OVER-HEAD STORAGE COMPARTMENT HAVING NON-CENTERED PIVOTING MOTION

  	
   

  	
  6574835

  	
   

  	
  6/10/03

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D475544

  	
   

  	
  6/10/03

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MODULAR
  STORAGE CABINET

  	
   

  	
  6550880

  	
   

  	
  4/22/03

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D471024

  	
   

  	
  3/4/03

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  METHOD
  OF MAKING A METAL DRAWER HEAD

  	
   

  	
  6516507

  	
   

  	
  2/11/03

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WORKSTATION

  	
   

  	
  D459109

  	
   

  	
  6/25/02

  

 

 

	
  Patent
  owned by the Borrower - Description

  	
   

  	
  Patent No.

  	
   

  	
  Issue Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WORKSTATION
  PANEL

  	
   

  	
  D458041

  	
   

  	
  6/4/02

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OVERHEAD
  STROAGE UNIT

  	
   

  	
  6394564

  	
   

  	
  5/28/02

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADJUSTABLE
  ARMREST ASSEMBLY WITH SINGLE ADJUSTMENT LEVER

  	
   

  	
  6394553

  	
   

  	
  5/28/02

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE OF
  FURNITURE INCLUDING A LEG HAVING WIRE MANAGEMENT CAPABILITIES

  	
   

  	
  6389988

  	
   

  	
  5/21/02

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STACKABLE
  PANEL SYSTEM FOR MODULAR OFFICE FURNITURE

  	
   

  	
  6389773

  	
   

  	
  5/21/02

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STORAGE
  CABINET

  	
   

  	
  D456178

  	
   

  	
  4/30/02

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STORAGE
  CABINET

  	
   

  	
  D456174

  	
   

  	
  4/30/02

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STORAGE
  CABINET

  	
   

  	
  D456172

  	
   

  	
  4/30/02

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HYBRID
  OFFICE PANEL CONSTRUCTION FOR A MODULAR OFFICE FURNITURE SYSTEM

  	
   

  	
  6367213

  	
   

  	
  4/9/02

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D444638

  	
   

  	
  7/20/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ELECTRICAL
  POWER AND COMMUNICATION OUTLET BOX

  	
   

  	
  D443592

  	
   

  	
  6/12/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HYBRID
  OFFICE PANEL CONSTRUCTION FOR A MODULAR OFFICE FURNITURE SYSTEM

  	
   

  	
  6167664

  	
   

  	
  1/2/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LOUNGE
  CHAIR

  	
   

  	
  D434233

  	
   

  	
  11/28/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LOUNGE
  CHAIR

  	
   

  	
  D430973

  	
   

  	
  9/19/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INDEPENDENTLY
  ADJUSTABLE MOUSE PAD

  	
   

  	
  6086034

  	
   

  	
  7/11/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MULTI-ADJUSTABLE
  ARMREST ASSEMBLY

  	
   

  	
  6076892

  	
   

  	
  6/20/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MULTI-ADJUSTABLE
  ARMREST ASSEMBLY

  	
   

  	
  6053578

  	
   

  	
  4/25/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D423241

  	
   

  	
  4/25/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D422424

  	
   

  	
  4/11/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OFFSET
  SUPPORT LEG FOR AN ADJUSTABLE HEIGHT DESK

  	
   

  	
  6029587

  	
   

  	
  2/29/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HYBRID
  OFFICE PANEL CONSTRUCTION FOR A MODULAR 

  	
   

  	
  6021613

  	
   

  	
  2/8/00

  

 

 

	
  Patent
  owned by the Borrower - Description

  	
   

  	
  Patent No.

  	
   

  	
  Issue Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OFFICE

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TABLE

  	
   

  	
  D415634

  	
   

  	
  10/26/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SELF-BRAKING
  HEIGH ADJUSTMENT MECHANISM

  	
   

  	
  5941182

  	
   

  	
  8/24/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PANEL
  FRAME ASSEMBLY

  	
   

  	
  5921040

  	
   

  	
  7/13/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LAY-IN
  WIREWAYS FOR A SPACE DIVIDER SYSTEM

  	
   

  	
  5918433

  	
   

  	
  7/6/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STORAGE
  CABINET

  	
   

  	
  D410351

  	
   

  	
  6/1/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OFFICE
  SYSTEM COMPRISING LINABLE DESK AND STORAGE UNITS

  	
   

  	
  5906420

  	
   

  	
  5/25/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HARDWIRING
  RACE FOR OFFICE PARTITIONS

  	
   

  	
  5901512

  	
   

  	
  5/11/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D408646

  	
   

  	
  4/27/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TELESCOPING
  LEVELER

  	
   

  	
  5881979

  	
   

  	
  3/16/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COFFEE
  TABLE

  	
   

  	
  D406480

  	
   

  	
  3/9/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAISE
  LOUNGE

  	
   

  	
  D406473

  	
   

  	
  3/9/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STOOL

  	
   

  	
  D406470

  	
   

  	
  3/9/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D406198

  	
   

  	
  3/2/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TRIM
  PIECE FOR AN OFFICE FURNITURE SYSTEM

  	
   

  	
  D405544

  	
   

  	
  2/9/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR
  ARM REST AND SUPPORT

  	
   

  	
  D398174

  	
   

  	
  9/15/98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADJUSTMET
  LUMBAR SUPPORT

  	
   

  	
  5791733

  	
   

  	
  8/11/98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FURNITURE
  PULL

  	
   

  	
  D396793

  	
   

  	
  8/11/98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORNICE

  	
   

  	
  D393319

  	
   

  	
  4/7/98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INDEPENDENTLY
  ADJUSTABLE MOUSE PAD AND KEYBOARD SUPPPORT APPARATUS

  	
   

  	
  5730408

  	
   

  	
  3/24/98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE OF
  FURNITURE INCLUDING A LEG HAVING WIRE MANAGEMENT CAPABILITIES

  	
   

  	
  5715761

  	
   

  	
  2/10/98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LAY-IN
  WIREWAYS FOR A SPACE DIVIDER SYSTEM

  	
   

  	
  5685113

  	
   

  	
  11/11/97

  

 

 

	
  Patent
  owned by the Borrower - Description

  	
   

  	
  Patent No.

  	
   

  	
  Issue Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR
  SEAT TILT ADJUSTMENT AND LOCKING MECHANISM

  	
   

  	
  5683139

  	
   

  	
  11/4/97

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LOCKING
  UNIVERSAL SUPPORT ARM

  	
   

  	
  5683064

  	
   

  	
  11/4/97

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VERTICALLY
  ADJUSTABLE TABLE

  	
   

  	
  5598789

  	
   

  	
  2/4/97

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CALIPER
  CONTROL FOR UNIVERSAL SUPPORT ARM

  	
   

  	
  5584596

  	
   

  	
  12/17/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LOCKING
  UNIVERSAL SUPPORT ARM

  	
   

  	
  5564667

  	
   

  	
  10/15/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LUMBAR
  SUPPORT CUSHION FOR CHAIRS

  	
   

  	
  5551752

  	
   

  	
  9/3/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COMPOSITE
  FOAM CHAIR CUSHION AND METHOD

  	
   

  	
  5499413

  	
   

  	
  3/19/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FOOTREST

  	
   

  	
  D367369

  	
   

  	
  2/27/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TABLE

  	
   

  	
  D367192

  	
   

  	
  2/20/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR
  CUSHION AND UPHOLSTERY ASSEMBLY AND METHOD

  	
   

  	
  5489145

  	
   

  	
  2/6/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MOUSEPAD

  	
   

  	
  D366654

  	
   

  	
  1/30/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WRISTREST

  	
   

  	
  D366653

  	
   

  	
  1/30/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR
  BACK SUPPORT ADJUSTMENT MECHANISM

  	
   

  	
  5476306

  	
   

  	
  12/19/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LUMBAR
  SUPPORT CUSHION

  	
   

  	
  D364065

  	
   

  	
  11/14/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR
  SEAT TILTE ADJUSTMENT AND LOCKING MECHANISM

  	
   

  	
  5464274

  	
   

  	
  11/7/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D363823

  	
   

  	
  11/7/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TABLE

  	
   

  	
  D362983

  	
   

  	
  10/10/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR
  BASE ASSEMBLY

  	
   

  	
  5454536

  	
   

  	
  10/3/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VDT
  CORNER UNIT ADAPTER

  	
   

  	
  D362772

  	
   

  	
  10/3/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TABLE

  	
   

  	
  D361458

  	
   

  	
  8/22/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TABLE

  	
   

  	
  D361457

  	
   

  	
  8/22/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HANDLE

  	
   

  	
  D361255

  	
   

  	
  8/15/95

  

 

 

	
  Patent
  owned by the Borrower - Description

  	
   

  	
  Patent No.

  	
   

  	
  Issue Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TABLE

  	
   

  	
  D361230

  	
   

  	
  8/15/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TABLE

  	
   

  	
  D361229

  	
   

  	
  8/15/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TABLE

  	
   

  	
  D360549

  	
   

  	
  7/25/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TABLE

  	
   

  	
  D360548

  	
   

  	
  7/25/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LOUNGE
  SEATING

  	
   

  	
  D360311

  	
   

  	
  7/18/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LOUNGE
  SEATING

  	
   

  	
  D360310

  	
   

  	
  7/18/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TILT
  CONTROL MECHANISM FOR CHAIRS

  	
   

  	
  5417474

  	
   

  	
  5/23/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR
  SHELL

  	
   

  	
  D358514

  	
   

  	
  5/23/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SINGLE
  PIECE CHAIR SHELL

  	
   

  	
  5411316

  	
   

  	
  5/2/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OVERHEAD
  CABINET WITH ROTATING DOOR

  	
   

  	
  5409308

  	
   

  	
  4/25/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MOBILE
  CADDY

  	
   

  	
  D357781

  	
   

  	
  4/25/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PENCIL
  TRAY

  	
   

  	
  D356338

  	
   

  	
  3/14/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TORQUE
  CONTROL MECHAISM FOR CHAIRS

  	
   

  	
  5388889

  	
   

  	
  2/14/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SEAT

  	
   

  	
  D355090

  	
   

  	
  2/7/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PAD
  FOR A CHAIR ARMREST

  	
   

  	
  D355089

  	
   

  	
  2/7/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D355080

  	
   

  	
  2/7/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D354631

  	
   

  	
  1/24/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D353269

  	
   

  	
  12/13/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR
  CONTROL

  	
   

  	
  5370445

  	
   

  	
  12/6/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TABLE

  	
   

  	
  D352407

  	
   

  	
  11/15/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D352181

  	
   

  	
  11/8/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D351510

  	
   

  	
  10/18/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D351069

  	
   

  	
  10/4/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  METHOD
  FOR FINISHING WOOD SLATTED ARTICLES OF 

  	
   

  	
  5338570

  	
   

  	
  8/16/94

  

 

 

	
  Patent
  owned by the Borrower - Description

  	
   

  	
  Patent No.

  	
   

  	
  Issue Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FURNITURE

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SELF
  BALANCED TABLE LAMP

  	
   

  	
  D348529

  	
   

  	
  7/5/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SEAT
  CUSHION

  	
   

  	
  D346924

  	
   

  	
  5/17/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COFFEE
  TABLE

  	
   

  	
  D346293

  	
   

  	
  4/26/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR
  FASTENING DEVICE

  	
   

  	
  5297851

  	
   

  	
  3/29/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTTOMAN

  	
   

  	
  D344856

  	
   

  	
  3/8/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADJUSTABLE
  HEIGHT TABLE

  	
   

  	
  5289782

  	
   

  	
  3/1/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CREDENZA

  	
   

  	
  D344199

  	
   

  	
  2/15/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DINING
  CHAIR

  	
   

  	
  D344191

  	
   

  	
  2/15/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FURNITURE
  COMPRISING LAMINATED SLATS AND METHODS OF MANUFACTURING SUCH FURNITURE

  	
   

  	
  5284380

  	
   

  	
  2/8/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DESK

  	
   

  	
  D343308

  	
   

  	
  1/18/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TABLE
  LEG

  	
   

  	
  D342403

  	
   

  	
  12/21/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADJUSTABLE
  ARM FOR A CHAIR

  	
   

  	
  5265938

  	
   

  	
  11/30/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CAFÉ
  CHAIR

  	
   

  	
  D341265

  	
   

  	
  11/16/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DIAMOND
  CHAIR

  	
   

  	
  D341264

  	
   

  	
  11/16/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CLUB
  CHAIR

  	
   

  	
  D341263

  	
   

  	
  11/16/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D341260

  	
   

  	
  11/16/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COMBINED
  CREDENZA AND HUTCH

  	
   

  	
  D341042

  	
   

  	
  11/9/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  METHOD
  FOR CONSTRUCTING AN OFFICE SPACE DIVIDING PANEL

  	
   

  	
  5258083

  	
   

  	
  11/2/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STORAGE
  CABINET

  	
   

  	
  D339934

  	
   

  	
  10/5/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D339927

  	
   

  	
  10/5/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D339926

  	
   

  	
  10/5/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D339924

  	
   

  	
  10/5/93

  

 

 

	
  Patent
  owned by the Borrower - Description

  	
   

  	
  Patent No.

  	
   

  	
  Issue Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TABLE

  	
   

  	
  D339488

  	
   

  	
  9/21/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TABLE

  	
   

  	
  D339487

  	
   

  	
  9/21/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TABLE

  	
   

  	
  D339486

  	
   

  	
  9/21/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DESK

  	
   

  	
  D339481

  	
   

  	
  9/21/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MARKERBOARD

  	
   

  	
  D339379

  	
   

  	
  9/14/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D339244

  	
   

  	
  9/14/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TABLE

  	
   

  	
  D338789

  	
   

  	
  8/31/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CAFÉ
  TABLE

  	
   

  	
  D338579

  	
   

  	
  8/24/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  D337447

  	
   

  	
  7/20/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FURNITURE
  STANCHIONS WITH UNITARY POWER ROUTING SYSTEM

  	
   

  	
  5226705

  	
   

  	
  7/13/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CEILING
  INFEED MODULE

  	
   

  	
  5195286

  	
   

  	
  3/23/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OVERHEAD
  CABINET WITH ROTATING DOOR

  	
   

  	
  5172969

  	
   

  	
  12/22/92

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ELECTRIFIED
  SPACE DIVIDING PANEL

  	
   

  	
  5164544

  	
   

  	
  11/17/92

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FURNITURE
  STANCHIONS WITH UNITARY POWER ROUTING SYSTEM

  	
   

  	
  5160188

  	
   

  	
  11/3/92

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FRAME
  BASED OFFICE SPACE DIVIDING SYSTEM

  	
   

  	
  5155955

  	
   

  	
  10/20/92

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FURNITURE
  COMPRISING LAMINATE SLATS AND METHOD OF MANUFACTURING SUCH FURNITURE

  	
   

  	
  5154486

  	
   

  	
  10/13/92

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROJECTILE
  RESISTING SPACE DIVIDING SYSTEM

  	
   

  	
  5142997

  	
   

  	
  9/1/92

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FILE
  HOLDERS AND BRIEFCASE THEREFOR

  	
   

  	
  5088801

  	
   

  	
  2/18/92

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PANEL
  FOR AN OFFICE SPACE DIVIDING SYSTEM

  	
   

  	
  5088250

  	
   

  	
  2/18/92

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SPACE
  DIVIDING PARTITION SYSTEM HAVING AN ELECTRICAL RACEWAY

  	
   

  	
  5065556

  	
   

  	
  11/19/91

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ELECTRICAL
  OR COMMUNICATIONS MONUMENT FOR MOUNTING ALONG AN EDGE OF A WORK SURFACE

  	
   

  	
  5057039

  	
   

  	
  10/15/91

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WIRE
  MANAGEMENT CLIP

  	
   

  	
  5040752

  	
   

  	
  8/20/91

  

 

 

	
  Patent
  owned by the Borrower - Description

  	
   

  	
  Patent No.

  	
   

  	
  Issue Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HEIGHT
  ADJUSTMENT MECHANISM FOR CHAIR BACK

  	
   

  	
  5037158

  	
   

  	
  8/6/91

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR
  TILT AND CHAIR HEIGHT CONTROL APPARATUS

  	
   

  	
  5029940

  	
   

  	
  7/9/91

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SPACE
  DIVIDER SYSTEM

  	
   

  	
  5024030

  	
   

  	
  6/18/91

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADJUSTABLE
  PEDESTAL FOR TABLES AND THE LIKE

  	
   

  	
  5020752

  	
   

  	
  6/4/91

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADJUSTABLE
  FOOT REST FOR A CHAIR

  	
   

  	
  5011227

  	
   

  	
  4/30/91

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  POSITION
  ADJUSTMENT LEG FOR PARTITION PANEL ASSEMBLY

  	
   

  	
  5005325

  	
   

  	
  4/9/91

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OPEN
  OFFICE SYSTEM PARTITION PANEL ASSEMBLY

  	
   

  	
  5003740

  	
   

  	
  4/2/91

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OPEN
  OFFICE SYSTEM PARTITION PANEL ASSEMBLY

  	
   

  	
  4996811

  	
   

  	
  3/5/91

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OPEN
  OFFICE SYSTEM PARTITION PANEL ASSEMBLY

  	
   

  	
  4993205

  	
   

  	
  2/19/91

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SPACE-DIVIDING
  WALL PANEL

  	
   

  	
  4949518

  	
   

  	
  8/21/90

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SLIDE
  PLATE ADJUSTMENT MECHANISM

  	
   

  	
  4938441

  	
   

  	
  7/3/90

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STORAGE
  CABINET

  	
   

  	
  D337455

  	
   

  	
  7/20/03

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  METHOD
  FOR MAKING A PANEL WITH CUTOUTS FORMED THEREIN

  	
   

  	
  5263252

  	
   

  	
  11/23/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OFFICE
  SPACE DIVIDING ARRANGEMENT

  	
   

  	
  4874027

  	
   

  	
  10/17/89

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OFFICE
  SPACE DIVIDING SYSTEM

  	
   

  	
  4870908

  	
   

  	
  10/03/89

  

 

Published
Patents of Borrower

 

	
  Description

  	
   

  	
  Publication No.

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OFFICE
  CHAIR

  	
   

  	
  20060006715

  	
   

  	
  07/08/05

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MECHANICAL
  ARM WITH SPRING ASSIST

  	
   

  	
  20040164213

  	
   

  	
  02/20/2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHAIR

  	
   

  	
  29/288,241

  	
   

  	
  06/05/07

  

 

 

TRADEMARK/TRADE NAMES OWNED BY BORROWER

 

U.S.
Trademark Registrations

 

Registered
Marks Knoll, Inc.

 

	
  Mark
  — Knoll, Inc.

  	
   

  	
  Registration No.

  	
   

  	
  Registration Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AUTOSTRADA

  	
   

  	
  3021487

  	
   

  	
  11/29/05

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Design
  Only

  	
   

  	
  2894980

  	
   

  	
  10/19/04

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Design
  Only

  	
   

  	
  2894979

  	
   

  	
  10/19/04

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Design
  Only

  	
   

  	
  2894978

  	
   

  	
  10/19/04

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Design
  Only

  	
   

  	
  2893025

  	
   

  	
  10/12/04

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Design
  Only

  	
   

  	
  2894977

  	
   

  	
  10/19/04

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KREFELD

  	
   

  	
  2949295

  	
   

  	
  5/10/05

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  JOE

  	
   

  	
  2957768

  	
   

  	
  5/31/05

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CECILIA

  	
   

  	
  2960132

  	
   

  	
  6/7/05

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DIVINA

  	
   

  	
  2807283

  	
   

  	
  1/20/04

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A3

  	
   

  	
  2744625

  	
   

  	
  7/29/03

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VISOR

  	
   

  	
  2660606

  	
   

  	
  12/10/02

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GIGI

  	
   

  	
  2647032

  	
   

  	
  11/5/02

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UPSTART

  	
   

  	
  2537287

  	
   

  	
  2/5/02

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  RPM

  	
   

  	
  2483718

  	
   

  	
  8/28/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PAPERCLIP

  	
   

  	
  2415886

  	
   

  	
  12/26/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FOG

  	
   

  	
  2394237

  	
   

  	
  10/10/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CURRENTS

  	
   

  	
  2237475

  	
   

  	
  4/6/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REFF

  	
   

  	
  2352223

  	
   

  	
  5/23/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DIVIDENDS

  	
   

  	
  2272597

  	
   

  	
  8/24/99

  

 

 

	
  Mark
  — Knoll, Inc.

  	
   

  	
  Registration No.

  	
   

  	
  Registration Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DISCUS

  	
   

  	
  2124373

  	
   

  	
  12/23/97

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  JR

  	
   

  	
  2064087

  	
   

  	
  5/20/97

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BACKPACK

  	
   

  	
  2111132

  	
   

  	
  11/4/97

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COUNTERFORCE

  	
   

  	
  2019756

  	
   

  	
  11/26/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GOOD
  DESIGN IS GOOD BUSINESS

  	
   

  	
  1978933

  	
   

  	
  6/4/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SALSA

  	
   

  	
  1996058

  	
   

  	
  8/20/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KNOLL
  EXTRA

  	
   

  	
  1923595

  	
   

  	
  10/3/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KNOLL
  EXTRA

  	
   

  	
  1886080

  	
   

  	
  3/28/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KNOLL
  EXTRA

  	
   

  	
  1889928

  	
   

  	
  4/18/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KNOLL
  EXTRA

  	
   

  	
  1925118

  	
   

  	
  10/10/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROPELLER

  	
   

  	
  2065353

  	
   

  	
  5/27/97

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KNOLL

  	
   

  	
  1897530

  	
   

  	
  6/6/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SAGUARO
  CACTUS

  	
   

  	
  1931985

  	
   

  	
  10/31/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOOTHPICK
  CACTUS

  	
   

  	
  1931984

  	
   

  	
  10/31/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PARACHUTE

  	
   

  	
  1905003

  	
   

  	
  7/11/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SURF

  	
   

  	
  1931967

  	
   

  	
  10/31/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KNOLL
  STUDIO

  	
   

  	
  1821382

  	
   

  	
  2/15/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MAGNUSSON
  UPTOWN

  	
   

  	
  1893630

  	
   

  	
  5/9/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MAGNUSSON
  MIDTOWN

  	
   

  	
  1887928

  	
   

  	
  4/4/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MAGNUSSON
  DOWNTOWN

  	
   

  	
  1893629

  	
   

  	
  5/9/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LITTLE
  DIPPER

  	
   

  	
  1926360

  	
   

  	
  10/10/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BIG
  DIPPER

  	
   

  	
  1926359

  	
   

  	
  10/10/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EQUITY

  	
   

  	
  1763700

  	
   

  	
  4/6/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CALIBRE

  	
   

  	
  1737652

  	
   

  	
  12/1/92

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ORCHESTRA

  	
   

  	
  1773588

  	
   

  	
  5/25/93

  

 

 

	
  Mark
  — Knoll, Inc.

  	
   

  	
  Registration No.

  	
   

  	
  Registration Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BULLDOG

  	
   

  	
  1655890

  	
   

  	
  9/3/91

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KNOLL

  	
   

  	
  1449734

  	
   

  	
  7/28/87

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VOLANTE

  	
   

  	
  1414255

  	
   

  	
  10/21/86

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DUO-SYNCRO

  	
   

  	
  842430

  	
   

  	
  1/16/68

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BARCELONA

  	
   

  	
  772313

  	
   

  	
  6/30/64

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KNOLL
  INTERNATIONAL

  	
   

  	
  557893

  	
   

  	
  4/22/52

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KNOLL

  	
   

  	
  557891

  	
   

  	
  4/22/52

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KNOLL
  EXTRA

  	
   

  	
  1930829

  	
   

  	
  10/31/95

  

 

Pending
Applications

 

	
  Mark

  	
   

  	
  Application No.

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WATERMARK

  	
   

  	
  78856613

  	
   

  	
  4/7/06

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  K.

  	
   

  	
  78856607

  	
   

  	
  4/7/06

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LIFE

  	
   

  	
  76404036

  	
   

  	
  5/7/02

  

 

Registered
Marks Spinneybeck Enterprises, Inc.

 

	
  Mark – Spinneybeck Enterprises,
  Inc.

  	
   

  	
  Registration No. 

  	
   

  	
  Registration Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LEATHERWEAVE

  	
   

  	
  1436944

  	
   

  	
  4/14/87

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SABRINA

  	
   

  	
  1404945

  	
   

  	
  8/12/86

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SPINNEYBECK

  	
   

  	
  1446426

  	
   

  	
  7/7/87

  

 

 

Schedule 6.08

 

Subsidiaries

 

	
  SUBSIDIARIES
  OF THE BORROWER

  	
   

  	
  JURISDICTION OF

  INCORPORATION

  	
   

  	
  OWNERSHIP

  INTEREST

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Knoll
  North America Corp.

  	
   

  	
  Ontario,
  Canada

  	
   

  	
  Wholly
  owned subsidiary of Knoll, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Spinneybeck
  Enterprises, Inc.

  	
   

  	
  New
  York

  	
   

  	
  Wholly
  owned subsidiary of Knoll, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Spinneybeck, LTD.

  	
   

  	
  Ontario,
  Canada

  	
   

  	
  Wholly
  owned subsidiary of Spinneybeck Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Spinneybeck
  Ireland

  	
   

  	
  Ireland

  	
   

  	
  Wholly
  owned subsidiary of Spinneybeck Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Knoll
  Overseas, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Wholly
  owned subsidiary of Knoll, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Knoll
  Europe B.V.

  	
   

  	
  Netherlands

  	
   

  	
  Wholly
  owned subsidiary of Knoll Overseas, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Knoll
  Italy, Ltd.

  	
   

  	
  England &
  Wales

  	
   

  	
  Wholly
  owned subsidiary of Knoll Europe B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Knoll
  International S.p.A

  	
   

  	
  Italy

  	
   

  	
  Wholly
  owned subsidiary of Knoll Europe B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Knoll
  International, Ltd.

  	
   

  	
  England &
  Wales

  	
   

  	
  Wholly
  owned subsidiary of Knoll Europe B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Knoll
  International S.A.

  	
   

  	
  France

  	
   

  	
  Wholly
  owned subsidiary of Knoll Europe B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Knoll
  International Deutschland GmBH

  	
   

  	
  Germany

  	
   

  	
  Wholly
  owned subsidiary of Knoll Europe B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Knoll
  International Belgium S.A.

  	
   

  	
  Belgium

  	
   

  	
  Wholly
  owned subsidiary of Knoll Europe B.V.

  

 

Loan Parties

 

	
  NAME

  	
   

  	
  JURISDICTION OF

  INCORPORATION

  	
   

  	
  CHIEF EXECUTIVE OFFICE

  	
   

  	
  ID NUMBERS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Knoll, Inc.

  	
   

  	
  Delaware

  	
   

  	
  1235
  Water Street, East Greenville, PA 18041

  	
   

  	
  Tax
  ID # 13-3873847

  Org ID #2571976

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Spinneybeck
  Enterprises, Inc.

  	
   

  	
  New
  York

  	
   

  	
  425 CrossPoint Parkway, Suite 100,
  Getzville, NY 14068

  	
   

  	
  Tax
  ID #16-1159029

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Knoll
  Overseas, Inc.

  	
   

  	
  Delaware

  	
   

  	
  1235
  Water Street, East Greenville, PA 18041

  	
   

  	
  Tax
  ID # 25-1648603

  Org ID #0445727

  

 

 

Schedule 6.17

 

Environmental Reports

 

None.

 

 

Schedule 6.18

 

Insurance

 

	
  Coverage

  	
   

  	
  Policy #

  	
   

  	
  Policy Term

  	
   

  	
  Insurer

  	
   

  	
  Deductibles/Limits

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  General
  Liability

   

  rated
  based on estimated $766mm Sales

  	
   

  	
  TC2J-GLSA-487K0398-
  04-TIL-07

  (U.S.)

  	
   

  	
  4/1/07
  to 4/1/08

  	
   

  	
  Travelers
  Property & Casualty Co. of America

  	
   

  	
  $100,000
  deductible each occ.

  $1,000,000
  each occ. $10,000,000 gen. aggregate $2,000,000 prod./co.op. agg.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Canadian
  General Liability

  	
   

  	
  TC2-SCPP-23I D7411-07

  (Canada)

  	
   

  	
  4/1/07
  to 4/1/08

  	
   

  	
  St.
  Paul Fire & Marine Insurance Co.

  	
   

  	
  Same
  as above

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Business
  Automobile

  	
   

  	
  TJ-CAP-487K0386-TIL-

  07 (U.S.) 8 vehicles

  	
   

  	
  4/1/07
  to 4/1/08

  	
   

  	
  Travelers
  Property & Casualty Co. of America

  	
   

  	
  $1,000,000
  CSL (Bodily Injury/Property Damage)

  $1,000,000
  UM/UIM

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Canadian
  Auto

  	
   

  	
  T-CAC-234D1054-07

  05 (Canada) – No owned vehicle

  	
   

  	
  4/1/07
  to 4/1/08

  	
   

  	
  St.
  Paul Fire & Marine Insurance Co.

  	
   

  	
  $1,000,000
  CSL (Bodily Injury/Property Damage)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Workers
  Compensation

  (All
  States Except AZ, WI, OR & MA)

  	
   

  	
  TC2N-UB-751G950-6-07

  	
   

  	
  4/1/07
  to 4/1/08

  	
   

  	
  Travelers
  Property & Casualty Co. of America

  	
   

  	
  $250,000
  deducible each occ.

  Coverage
  A: Statutory Benefits

   

  Coverage
  B: Employers Liability

  $1,000,000
  bodily injury by accident – each accident

  $1,000,000
  bodily injury by disease – each employee

  $1,000,000
  bodily injury by disease – policy limit

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Workers
  Compensation

  (AZ,
  OR, WI, MA)

  	
   

  	
  TRJ-UB-751G951-8-07

  	
   

  	
  4/1/07
  to 4/1/08

  	
   

  	
  Travelers
  Property & Casualty Co. of America

  	
   

  	
  $250,000
  deducible each occ.

  Coverage
  A: Statutory Benefits

   

  Coverage
  B: Employers Liability

  $1,000,000
  bodily injury by accident – each accident

  $1,000,000
  bodily injury by disease – each employee

  $1,000,000
  bodily injury by disease – policy limit

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Umbrella
  Liability

  ($25
  Million)

  	
   

  	
  QK06400661

  	
   

  	
  4/1/07
  to 4/1/08

  	
   

  	
  St
  Paul Fire & Marine

  	
   

  	
  $10,000
  self-insured retention

  $25,000,000
  each occurrence

  

 

 

	
  Coverage

  	
   

  	
  Policy #

  	
   

  	
  Policy Term

  	
   

  	
  Insurer

  	
   

  	
  Deductibles/Limits

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $25,000,000
  general aggregate

  $25,000,000
  products/completed operations aggregate

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1st
  Layer Excess Liability

  ($25
  Million xs scheduled underlying policies)

  	
   

  	
  9363-03-54

  	
   

  	
  4/1/07
  to 4/1/08

  	
   

  	
  Federal
  Insurance Company

  (Chubb)

  	
   

  	
  $25,000,000
  each occurrence

  $25,000,000
  general aggregate

  $25,000,000
  products/completed

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2nd
  Layer Excess Liability

  ($50
  Million xs scheduled underlying policies)

  	
   

  	
  SHX
  00089038178

  	
   

  	
  4/l/07
  to 4/1/08

  	
   

  	
  American
  Insurance Co. (Fireman’s Fund)

  	
   

  	
  $50,000,000
  each occurrence

  $50,000,000
  general aggregate

  $50,000,000
  products/completed

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Director’s &
  Officer’s Liability

  	
   

  	
  EC09000149

  	
   

  	
  12/14/06
  to 12/14/07

  	
   

  	
  St.
  Paul

  	
   

  	
  Deductible
  varies between $0 and $500,000

  $10,000,000
  each wrongful act/agg. Incl. Defense

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Excess
  Director’s & Officer’s Liability

  	
   

  	
  3032224

  	
   

  	
  12/14/06
  to 12/14/07

  	
   

  	
  Darwin

  	
   

  	
  $5,000,000
  xs $10,000,000 Aggregate Incl. defense

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Excess
  Director’s & Officer’s Liability

  	
   

  	
  DOC9685075-00

  	
   

  	
  12/14/06
  to 12/14/07

  	
   

  	
  Zurich

  	
   

  	
  $5,000,000
  xs $15,000,000 Aggregate Incl. defense

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Excess
  Director’s & Officer’s Liability

  	
   

  	
  ELU095568-06

  	
   

  	
  12/14/06
  to 12/14/07

  	
   

  	
  XL

  	
   

  	
  $5,000,000
  xs $20,000,000 Aggregate Incl. defense

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crime

  	
   

  	
  6804-3241

  	
   

  	
  12/14/06
  to 12/14/07

  	
   

  	
  Federal
  Insurance Company (Chubb)

  	
   

  	
  $1,000,000
  deductible per occurrence

  $10,000,000

  (Employee
  Dishonesty)

  $10,000,000

  (Forgery
  or Alteration)

  $10,000,000

  (Theft,
  Disappearance and Destruction)

  $10,000.000

  (Funds
  Transfer Fraud/Computer Theft)

  $10,000,000

  (Money
  Order and Counterfeit Fraud)

  $10,000,000

  (Employee
  Dishonesty Against Client)

  Included
  ERISA Bond

  

 

 

	
  Coverage

  	
   

  	
  Policy #

  	
   

  	
  Policy Term

  	
   

  	
  Insurer

  	
   

  	
  Deductibles/Limits

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $1,000,000

  (Credit
  Cards)

  $250,000

  (Investigative
  Expenses) 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fiduciary
  Liability

  	
   

  	
  6804-3241

  	
   

  	
  12/14/06
  to 12/14/07

  	
   

  	
  Federal
  Insurance Company (Chubb)

  	
   

  	
  $50,000
  deductible per loss

  $10,000,000
  Aggregate

  $100,000
  Voluntary Compliance Sublimit

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Special
  Accident Kidnap, Ransom & Extortion

  	
   

  	
  6802-4651

  	
   

  	
  12/14/06
  to 12/14/07

  	
   

  	
  Federal
  Insurance Co. (Chubb)

  	
   

  	
  $5,000,000
  K&R/Extortion

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Property
  Worldwide Program (local Euro policy issued in Italy and Billed in Italy)
  (Difference & Conditions / Difference in Limits - outside of Italy)

   

  	
   

  	
  PPR-5919363

  	
   

  	
  4/1/07
  to 4/1/08

  	
   

  	
  Zurich
  American Insurance Co.

  	
   

  	
  $400,000,000
  Loss Limit subject to Location Limits

  All
  Real and Personal Property, including Boiler and Machinery, BI. Extra
  Expense, etc.

  $100,000,000
  Machinery Breakdown

  $25,000,000
  Extra Expense

  $10,000,000
  Contingent Business Interruption

  $10,000,000/120
  days newly acquired property

  $2,500,000
  Misc. Premises

  $100,000,000
  Earth Movement

  $5,000,000
  Earth Movement for Italy

  $100,000,000
  Named Storm

  $25,000,000
  Named Storm (wind zones 1 and 2)

  $50,000,000
  Flood

  $5,000,000
  locations within 100 year floodplain

  $10,000,000
  locations outside 100 year floodplain and within 500 year floodplain 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Property
  - Italy

  	
   

  	
   

  	
   

  	
  4/1/07
  to 4/1/08

  	
   

  	
  Zurich
  American Insurance Co.

  	
   

  	
  Included
  in Blanket limit

  All
  Real and Personal

  Property,
  including Boiler and Machinery, BI, Extra Expense, etc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Property
  - Canada

  	
   

  	
   

  	
   

  	
  4/1/07
  to 4/1/08

  	
   

  	
  Zurich
  American 

  	
   

  	
  Included
  In Blanket limit

  All
  Real and Personal 

  

 

 

	
  Coverage

  	
   

  	
  Policy #

  	
   

  	
  Policy Term

  	
   

  	
  Insurer

  	
   

  	
  Deductibles/Limits

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Insurance
  Co.

  	
   

  	
  Property,
  including Boiler and Machinery, BI, Extra Expense, etc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Foreign
  Excess and DIC

  (Casualty)

  	
   

  	
  GB02901665

  	
   

  	
  4/1/07
  to 4/1/08

  	
   

  	
  St
  Paul Fire & Marine

  	
   

  	
  1)
  General Liability

  $2,000,000
  each occurrence

  $2,000,000
  General Aggregate

  $1,000,000
  products / completed operation aggregate

  $1,000,000
  Personal and Advertising Liability

  $1,000,000
  Premises Damage

  $10,000
  Medical Expense Per Person

  $1,000,000
  Employee Benefits Aggregate

   

  2)
  Auto Liability

  $1,000,000
  CSL

  $10,000
  Medical Payments

  $25,000
  Medical Payments – each accident

   

  3)
  Foreign Voluntary

  Workers
  Compensation WC and EL Benefits - State of Hire

  $1,000,000
  BI Each Accident

  $1,000,000
  BI by Disease

  $1,000,000
  BI Policy Limit

  $250,000
  Repatriation Expense each employee/ $250,000 aggregate

  

 

 

Schedule 6.19(a)

 

Filing Offices

 

	
  Knoll, Inc.

  	
   

  	
  The
  Secretary of State of the State of Delaware

  
	
   

  	
   

  	
   

  
	
  Knoll
  Overseas, Inc.

  	
   

  	
  The
  Secretary of State of the State of Delaware

  
	
   

  	
   

  	
   

  
	
  Spinneybeck Enterprises. Inc.

  	
   

  	
  The
  Secretary of State of the State of New York

  
	
   

  	
   

  	
   

  
	
  This schedule does not include fixture filings.

  

 

 

Schedule 6.19(c)

 

Mortgage Filing Offices

 

	
  Knoll, Inc.

  	
   

  	
  Kent
  County Register of Deeds

  
	
   

  	
   

  	
  300
  Monroe Avenue, NW

  
	
   

  	
   

  	
  Grand
  Rapids, Michigan 49503

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Muskegon
  County Register of Deeds

  
	
   

  	
   

  	
  990
  Terrace Street

  
	
   

  	
   

  	
  County
  Building

  
	
   

  	
   

  	
  Muskegon,
  MI 49442

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Montgomery
  County Recorder of Deeds

  
	
   

  	
   

  	
  One
  Montgomery Plaza

  
	
   

  	
   

  	
  Suite 303

  
	
   

  	
   

  	
  Swede
  and Airy Streets

  
	
   

  	
   

  	
  Norristown,
  PA 19404

  

 

 

Schedule 6.20(a)

 

Owned Property

 

	
  Knoll, Inc.

  	
   

  	
  4300
  36th St., S.E., Kentwood,

  County of Kent, Michigan

  
	
  Knoll, Inc.

  	
   

  	
  2800
  Estes St., Norton Shores,

  County of Muskegon,

  Michigan (plus adjacent parcel

  acquired in 2001)

  
	
  Knoll, Inc.

  	
   

  	
  329
  Railroad Street, Borough

  of East Greenville, County of

  Montgomery, Pennsylvania

  
	
  Knoll, Inc.

  	
   

  	
  1235
  Water Street, Borough of

  East Greenville, County of

  Montgomery, Pennsylvania

  

 

 

Schedule 6.20(b)

 

Leased Property

 

	
  Knoll, Inc.
  manufacturing plant

  	
  921
  W. Western Avenue

  
	
   

  	
  Muskegon,
  MI

  

 

In
addition, Borrower and its Subsidiaries lease showroom, office and warehouse
space, none of which individually is material to the Borrower.

 

 

Schedule 8.01

 

Existing Indebtedness

 

	
  Lender

  	
   

  	
  Type of Indebtedness and

  Description

  	
   

  	
  Outstanding Amount (or, if

  line of credit, maximum

  amount of the line of credit)

  	
   

  
	
  Bank of Italy

  	
   

  	
  Knoll
  International S.p.A

  	
   

  	
  €

  	
  478,000.00

  	
   

  
	
  Banca  Nazionale Del Lavoro

  	
   

  	
  Knoll
  International S.p.A

  	
   

  	
  €

  	
  1,650,000.00

  	
   

  
	
  Banca  Intesa

  	
   

  	
  Knoll
  International S.p.A

  	
   

  	
  €

  	
  1,000,000.00

  	
   

  
	
  Banca Di Roma

  	
   

  	
  Knoll
  International S.p.A

  	
   

  	
  €

  	
  1,225,000.00

  	
   

  
	
  Unicredit  Banca

  	
   

  	
  Knoll
  International S.p.A

  	
   

  	
  €

  	
  850,000.00

  	
   

  
	
  Societe  Generale

  	
   

  	
  Knoll
  International S.A.

  	
   

  	
  €

  	
  304,000.00

  	
   

  
	
  Natexis  Banques  Populaires

  	
   

  	
  Knoll
  International S.A.

  	
   

  	
  €

  	
  1,525,000.00

  	
   

  
	
  National Westminster

  	
   

  	
  Knoll
  International Ltd.

  	
   

  	
  €

  	
  200,000.00

  	
   

  

 

 

Schedule 8.02

 

Existing Liens

 

None

 

 

Schedule 8.04

 

Existing Investments

 

None.

 

 

Schedule 11.02

 

Certain Addresses for Notices

 

1.  Address for Loan Parties:

 

Borrower:

 

	
  Knoll, Inc.

  
	
  1235 Water Street

  
	
  East Greenville, PA 18041

  
	
  Attention:

  	
  Barry
  L. Mc Cabe

  
	
  Cc:

  	
  Michael
  Pollner

  
	
  Telephone:

  	
  (215)
  679-1301

  
	
  Facsimile:

  	
  (215)
  679-1013

  
	
  E-mail:

  	
  bmccabe@knoll.com

  
	
  Website:

  	
  www.knoll.com

  

 

With
copies to:

 

	
  Willkie Farr & Gallagher LLP

  
	
  787 Seventh Avenue

  
	
  New York, NY 10019

  
	
  Attention:

  	
  William
  Hiller

  
	
  Telephone:

  	
  (212)
  728 8228

  
	
  Facsimile:

  	
  (212)
  728 9228

  
	
  E-mail:

  	
  whiller@willkie.com

  

 

2.  Addresses for Administrative Agent, Swing
Line Lender and L/C Issuer:

 

Agent’s Office:

(for payments and requests)

 

	
  Bank of America, N.A.

  
	
  One Independence Center

  
	
  101 N. Tryon Street

  
	
  Mail
  Code:

  	
  NC1-001-04-39

  
	
  Charlotte, North Carolina 28255-001

  
	
  Attention:

  	
  Robert
  Lloyd

  
	
  Telephone:

  	
  704-387-3615

  
	
  Facsimile:

  	
  704-719-8311

  

 

Wiring
instructions:

 

	
  Bank of America, N.A.

  
	
  Charlotte, North Carolina

  
	
  ABA
  #:

  	
  026009593

  
	
  Acct
  #:

  	
  136-621-225-0600

  
	
  Attention:

  	
  Robert
  Lloyd

  
	
  Ref:

  	
  Knoll, Inc.

  

 

 

	
  Other
  Notices to Administrative Agent:

  
	
   

  
	
  Bank of America, N.A.

  
	
  231 S. LaSalle Street

  
	
  Mail Code:

  	
  IL1-231-10-41

  
	
  Chicago, Illinois 60697

  
	
  Attention:

  	
  Charlene
  Wright-Jones

  
	
  Telephone:

  	
  312-828-3935

  
	
  Facsimile:

  	
  877-206-8427

  
	
  E-mail:

  	
  charlene.wright-jones@bankofamerica.com

  
	
   

  	
   

  
	
  For Notices as L/C Issuer:

  
	
   

  	
   

  
	
  Bank of America, N.A.

  
	
  1 Fleet Way

  
	
  Mail Code:

  	
  PA6-580-02-30

  
	
  Scranton, Pennsylvania 18507

  
	
  Attention:

  	
  Alfonso
  Malave Jr.

  
	
  Telephone:

  	
  570-330-4212

  
	
  Facsimile:

  	
  570-330-4186

  
	
  E-mail:

  	
  afonso.malave@bankofamerica.com

  
	
   

  	
   

  
	
  For Notices as Swing Line
  Lender:

  
	
  (daily borrowing/repaying
  activity)

  
	
   

  	
   

  
	
  Bank of America, N.A.

  
	
  One Independence Center

  
	
  101 N. Tryon Street

  
	
  Mail Code:

  	
  NC1-001-04-39

  
	
  Charlotte, North Carolina 28255-001

  
	
  Attention:

  	
  Robert
  Lloyd

  
	
  Telephone:

  	
  704-387-3615

  
	
  Facsimile:

  	
  704-719-8311

  
	
   

  	
   

  
	
  Wiring instructions:

  
	
   

  	
   

  
	
  Bank of America, N.A.

  
	
  Charlotte, North Carolina

  
	
  ABA #:

  	
  026009593

  
	
  Acct #:

  	
  136-621-225-0600

  
	
  Attention:

  	
  Robert
  Lloyd

  
	
  Ref:

  	
  Knoll, Inc.

  

 

 

Exhibit 2.02

 

FORM OF LOAN NOTICE

 

Date: 
                    ,
20

 

To:                             Bank of
America, N.A., as Administrative Agent

 

Re:                               Credit Agreement dated as of
June 29, 2007 (as amended, modified, supplemented or extended from time to
time, the “Credit Agreement”) among Knoll, Inc., a Delaware
corporation (the “Borrower”), the Guarantors from time to time party
thereto, the Lenders from time to time party thereto and Bank of America, N.A.,
as Administrative Agent, Swing Line Lender and L/C Issuer.  Capitalized terms used but not otherwise
defined herein have the meanings provided in the Credit Agreement.

 

Ladies
and Gentlemen:

 

1.            The
undersigned hereby requests (select one):

 

o  A Borrowing of Domestic Revolving Loans

 

o  A Borrowing of Euro Revolving Loans

 

o  A conversion or continuation of Domestic
Revolving Loans

 

2.            On
                              ,
20       (which is a Business Day).

 

3.            Amount
and Currency of Borrowing
                                              .

 

4.            Type
of Loan requested:

 

o Base Rate
Loans(1)                         o Eurocurrency
Rate Loans

 

5.            With
an Interest Period of (for Eurodollar Rate Loans):

 

	
  o One Month

  	
  o Two Month

  	
  o Three Month

  
	
  o Six Month

  	
  o Nine Month*

  	
  o Twelve Month*

  

 

The
Borrower hereby represents and warrants that (a) after giving effect to
any Borrowing of Domestic Revolving Loans, (i) the Total Domestic
Revolving Outstandings shall not exceed the Aggregate Domestic Revolving
Commitments, (ii) the Total Revolving Outstandings shall not exceed the
Maximum Permitted Revolving Outstandings, and (iii) the aggregate
Outstanding Amount of the Domestic Revolving Loans of any Domestic Lender, plus
such Domestic Lender’s Applicable Percentage of the Outstanding Amount of all
Domestic L/C Obligations plus such Domestic Lender’s Applicable
Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed
such Domestic Lender’s Domestic Revolving Commitment, (b) after giving
effect to any Borrowing of Euro Revolving Loans, (i) the Total Euro
Revolving Outstandings shall not exceed the Aggregate Euro Revolving
Commitments,

 

(1) 
Only available for Domestic Revolving Loans.

*      Only available if consented to by all of
the Lenders.

*      Only available if consented to by all of
the Lenders.

 

 

(ii) the
Total Revolving Outstandings shall not exceed the Maximum Permitted Revolving
Outstandings and (iii) the aggregate Outstanding Amount of the Euro
Revolving Loans of any Euro Lender shall not exceed such Euro Lender’s Euro
Revolving Commitment (c) each of the conditions set forth in Section 5.02
of the Credit Agreement has been satisfied on and as of the date of such
Borrowing, conversion or continuation.

 

	
   

  	
  KNOLL, INC.,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

 

Exhibit 2.04

 

FORM OF SWING LINE LOAN NOTICE

 

Date:
                    ,
20

 

To:          Bank of America, N.A., as Swing Line
Lender

 

Cc:          Bank of America, N.A., as
Administrative Agent

 

Re:                               Credit Agreement dated as of
June 29, 2007 (as amended, modified, supplemented or extended from time to
time, the “Credit Agreement”) among Knoll, Inc., a Delaware
corporation (the “Borrower”), the Guarantors from time to time party
thereto, the Lenders from time to time party thereto and Bank of America, N.A.,
as Administrative Agent, Swing Line Lender and L/C Issuer.  Capitalized terms used but not otherwise
defined herein have the meanings provided in the Credit Agreement.

 

Ladies
and Gentlemen:

 

1.             The
undersigned hereby requests a Swing Line Loan.

 

2.             On           , 20     (a
Business Day).

 

3.             In
the amount of
$                    .

 

With
respect to such Borrowing of Swing Line Loans, the Borrower hereby represents
and warrants that (a) after giving effect to such Borrowing of Swing Line
Loans, (i) the Total Revolving Outstandings shall not exceed the Maximum
Permitted Revolving Outstandings, and (ii) the aggregate Outstanding
Amount of the Domestic Revolving Loans of any Domestic Lender, plus such
Domestic Lender’s Applicable Percentage of the Outstanding Amount of all
Domestic L/C Obligations, plus such Domestic Lender’s Applicable
Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed
such Domestic Lender’s Domestic Revolving Commitment and (b) each of the
conditions set forth in Section 5.02 of the Credit Agreement has
been satisfied on and as of the date of such Borrowing of Swing Line Loans.

 

	
   

  	
  KNOLL, INC.,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

EXHIBIT 2.11(a)(i)

 

FORM OF DOMESTIC REVOLVING NOTE

 

FOR
VALUE RECEIVED, the undersigned (the “Borrower”), hereby promises to pay
to
                                          
or registered assigns (the “Domestic Lender”), in accordance with the
provisions of the Credit Agreement (as hereinafter defined), the principal
amount of each Domestic Revolving Loan from time to time made by the Domestic
Lender to the Borrower under that certain Credit Agreement dated as of June 29,
2007 (as amended, modified, supplemented or extended from time to time, the “Credit
Agreement”) among the Borrower, the Guarantors from time to time party
thereto, the Lenders from time to time party thereto and Bank of America, N.A.,
as Administrative Agent, Swing Line Lender and L/C Issuer.  Capitalized terms used but not otherwise
defined herein have the meanings provided in the Credit Agreement.

 

The
Borrower promises to pay interest on the unpaid principal amount of each
Domestic Revolving Loan from the date of such Domestic Revolving Loan until
such principal amount is paid in full, at such interest rates and at such times
as provided in the Credit Agreement.  All
payments of principal and interest shall be made to the Administrative Agent
for the account of the Domestic Lender in Dollars in immediately available
funds at the Administrative Agent’s Office. 
If any amount is not paid in full when due hereunder, such unpaid amount
shall bear interest, to be paid upon demand, from the due date thereof until
the date of actual payment (and before as well as after judgment) computed at
the per annum rate set forth in the Credit Agreement.

 

This
Domestic Revolving Note is one of the Domestic Revolving Notes referred to in
the Credit Agreement, is entitled to the benefits thereof and may be prepaid in
whole or in part subject to the terms and conditions provided therein.  Upon the occurrence and continuation of one
or more of the Events of Default specified in the Credit Agreement, all amounts
then remaining unpaid on this Domestic Revolving Note shall become, or may be
declared to be, immediately due and payable all as provided in the Credit
Agreement.  Domestic Revolving Loans made
by the Domestic Lender shall be evidenced by one or more loan accounts or
records maintained by the Domestic Lender in the ordinary course of business.
The Domestic Lender may also attach schedules to this Domestic Revolving Note
and endorse thereon the date, amount and maturity of its Domestic Revolving
Loans and payments with respect thereto.

 

The
Borrower, for itself, its successors and assigns, hereby waives diligence,
presentment, protest and demand and notice of protest, demand, dishonor and
nonpayment of this Domestic Revolving Note.

 

THIS
DOMESTIC REVOLVING NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402
OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) WITHOUT REGARD TO
CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION.

 

	
   

  	
  KNOLL, INC.,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

EXHIBIT 2.11(a)(ii)

 

FORM OF EURO REVOLVING NOTE

 

FOR
VALUE RECEIVED, the undersigned (the “Borrower”), hereby promises to pay
to
                                          
or registered assigns (the “Euro Lender”), in accordance with the
provisions of the Credit Agreement (as hereinafter defined), the principal
amount of each Euro Revolving Loan from time to time made by the Euro Lender to
the Borrower under that certain Credit Agreement dated as of June 29, 2007
(as amended, modified, supplemented or extended from time to time, the “Credit
Agreement”) among the Borrower, the Guarantors from time to time party
thereto, the Lenders from time to time party thereto and Bank of America, N.A.,
as Administrative Agent, Swing Line Lender and L/C Issuer.  Capitalized terms used but not otherwise
defined herein have the meanings provided in the Credit Agreement.

 

The
Borrower promises to pay interest on the unpaid principal amount of each Euro
Revolving Loan from the date of such Euro Revolving Loan until such principal
amount is paid in full, at such interest rates and at such times as provided in
the Credit Agreement.  All payments of
principal and interest shall be made to the Administrative Agent for the
account of the Euro Lender in the Applicable Currency in immediately available
funds at the Administrative Agent’s Office. 
If any amount is not paid in full when due hereunder, such unpaid amount
shall bear interest, to be paid upon demand, from the due date thereof until
the date of actual payment (and before as well as after judgment) computed at
the per annum rate set forth in the Credit Agreement.

 

This
Euro Revolving Note is one of the Euro Revolving Notes referred to in the
Credit Agreement, is entitled to the benefits thereof and may be prepaid in
whole or in part subject to the terms and conditions provided therein.  Upon the occurrence and continuation of one
or more of the Events of Default specified in the Credit Agreement, all amounts
then remaining unpaid on this Euro Revolving Note shall become, or may be
declared to be, immediately due and payable all as provided in the Credit
Agreement.  Euro Revolving Loans made by
the Euro Lender shall be evidenced by one or more loan accounts or records
maintained by the Euro Lender in the ordinary course of business. The Euro
Lender may also attach schedules to this Euro Revolving Note and endorse
thereon the date, amount and maturity of its Euro Revolving Loans and payments
with respect thereto.

 

The
Borrower, for itself, its successors and assigns, hereby waives diligence,
presentment, protest and demand and notice of protest, demand, dishonor and
nonpayment of this Euro Revolving Note.

 

THIS
EURO REVOLVING NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402
OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) WITHOUT REGARD TO
CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION.

 

	
   

  	
  KNOLL, INC.,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

EXHIBIT 2.11(a)(iii)

 

FORM OF SWING LINE NOTE

 

FOR
VALUE RECEIVED, the undersigned (the “Borrower”), hereby promises to pay
to BANK OF AMERICA, N.A. or registered assigns (the “Swing Line Lender”),
in accordance with the provisions of the Credit Agreement (as hereinafter
defined), the principal amount of each Swing Line Loan from time to time made
by the Swing Line Lender to the Borrower under that certain Credit Agreement
dated as of June 29, 2007 (as amended, modified, supplemented or extended
from time to time, the “Credit Agreement”) among the Borrower, the
Guarantors from time to time party thereto, the Lenders from time to time party
thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender
and L/C Issuer.  Capitalized terms used
but not otherwise defined herein have the meanings provided in the Credit
Agreement.

 

The
Borrower promises to pay interest on the unpaid principal amount of each Swing
Line Loan from the date of such Swing Line Loan until such principal amount is
paid in full, at such interest rates and at such times as provided in the
Credit Agreement.  All payments of
principal and interest shall be made to the Administrative Agent for the
account of the Swing Line Lender in Dollars in immediately available funds at
the Administrative Agent’s Office.  If
any amount is not paid in full when due hereunder, such unpaid amount shall
bear interest, to be paid upon demand, from the due date thereof until the date
of actual payment (and before as well as after judgment) computed at the per
annum rate set forth in the Credit Agreement.

 

This
Swing Line Note is the Swing Line Note referred to in the Credit Agreement, is
entitled to the benefits thereof and may be prepaid in whole or in part subject
to the terms and conditions provided therein. 
Upon the occurrence and continuation of one or more of the Events of
Default specified in the Credit Agreement, all amounts then remaining unpaid on
this Swing Line Note shall become, or may be declared to be, immediately due
and payable all as provided in the Credit Agreement.  Swing Line Loans made by the Swing Line
Lender shall be evidenced by one or more loan accounts or records maintained by
the Lender in the ordinary course of business. The Swing Line Lender may also
attach schedules to this Swing Line Note and endorse thereon the date, amount
and maturity of its Swing Line Loans and payments with respect thereto.

 

The
Borrower, for itself, its successors and assigns, hereby waives diligence,
presentment, protest and demand and notice of protest, demand, dishonor and
nonpayment of this Swing Line Note.

 

THIS
SWING LINE NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402
OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) WITHOUT REGARD TO
CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION.

 

	
   

  	
  KNOLL, INC.,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

Exhibit 7.04

 

FORM OF COMPLIANCE CERTIFICATE

 

Financial
Statement Date:
                    ,
20

 

To:          Bank of America, N.A., as Administrative
Agent

 

Re:                               Credit Agreement dated as of
June 29, 2007 (as amended, modified, supplemented or extended from time to
time, the “Credit Agreement”) among Knoll, Inc., a Delaware
corporation (the “Borrower”), the Guarantors from time to time party
thereto, the Lenders from time to time party thereto and Bank of America, N.A.,
as Administrative Agent, Swing Line Lender, and L/C Issuer.  Capitalized terms used but not otherwise
defined herein have the meanings provided in the Credit Agreement.

 

Ladies
and Gentlemen:

 

The undersigned Responsible Officer hereby certifies as of the date
hereof that [he/she] is the
                              
of the Borrower, and that, in [his/her] capacity as such, [he/she] is
authorized to execute and deliver this Compliance Certificate to the
Administrative Agent on the behalf of the Borrower, and that:

 

[Use following paragraph 1 for fiscal year-end
financial statements:]

 

[1.            Attached hereto as Schedule 1
are the year-end audited financial statements required by Section 7.01(a) of
the Credit Agreement for the fiscal year of the Borrower ended as of the above
date, together with the report and opinion of an independent certified public
accountant required by such section.]

 

[Use following paragraph 1 for fiscal quarter-end
financial statements:]

 

[1.            Attached hereto as Schedule 1
are the unaudited financial statements required by Section 7.01(b) of
the Credit Agreement for the fiscal quarter of the Borrower ended as of the
above date.  Such financial statements
fairly present in all material respects the financial condition, results of
operations and cash flows of the Borrower and its Subsidiaries in accordance
with GAAP as at such date and for such period, subject only to normal year-end
audit adjustments and the absence of footnotes.]

 

2.             The undersigned has reviewed and is
familiar with the terms of the Credit Agreement and has made, or has caused to
be made, a detailed review of the transactions and condition (financial or
otherwise) of the Borrower during the accounting period covered by the attached
financial statements.

 

3.             A review of the activities of the
Borrower during such fiscal period has been made under the supervision of the
undersigned with a view to determining whether during such fiscal period the
Borrower performed and observed all its Obligations under the Loan Documents,
and

 

[select
one:]

 

[to
the best knowledge of the undersigned during such fiscal period, the Borrower
performed and observed each covenant and condition of the Loan Documents
applicable to it, and no Default has occurred and is continuing.]

 

 

[or:]

 

[the
following covenants or conditions have not been performed or observed and the
following is a list of each such Default and its nature and status:]

 

4.             The representations and warranties of
the Loan Parties contained in the Credit Agreement or any other Loan Document,
are true and correct on and as of the date hereof, except to the extent that
such representations and warranties specifically refer to an earlier date, in
which case they are true and correct as of such earlier date, and except that
for purposes of this Compliance Certificate, the representations and warranties
contained in subsections (a) and (b) of Section 6.05 of
the Credit Agreement shall be deemed to refer to the most recent statements
furnished pursuant to clauses (a) and (b), respectively, of Section 7.01
of the Credit Agreement, including the statements in connection with which this
Compliance Certificate is delivered.

 

5.             The financial covenant analyses and
calculation of the Consolidated Interest Coverage Ratio, the Consolidated Net
Leverage Ratio and the Consolidated Leverage Ratio set forth on Schedule 2
attached hereto are true and accurate on and as of the date of this Compliance
Certificate.

 

IN WITNESS WHEREOF, the undersigned has executed this Compliance
Certificate as of
                    ,
20      .

 

	
   

  	
  KNOLL, INC.,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

Schedule 2

to Compliance Certificate

 

	
  1.

  	
  Consolidated
  Interest Coverage Ratio

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Consolidated
  EBITDA

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  Consolidated
  Net Income

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  Consolidated
  Interest Expense

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)

  	
  amounts
  for taxes based on income, profits or capital and commercial activity payments
  to taxing authorities

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iv)

  	
  depreciation
  and amortization expense

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (v)

  	
  non-recurring
  fees, cash charges and other cash expenses

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (vi)

  	
  any
  extraordinary losses

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (vii)

  	
  facilities
  relocation or closing costs, non-recurring restructuring costs and integration
  costs and fees

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (viii)

  	
  amortization
  and impairment charges resulting from purchase accounting adjustments

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ix)

  	
  non-cash
  compensation charges and deferred compensation charges

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (x)

  	
  other
  non-cash charges, impairments and expenses

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (xi)

  	
  fees,
  cash charges and other cash expenses made or incurred in connection with
  equity or debt financings, amendments and waivers

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (xii)

  	
  cash
  payments made on account of non-cash charges added to Consolidated Net Income

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (xiii)

  	
  extraordinary
  gains and all non-cash items of income (to the extent included in
  Consolidated Net Income)

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (xiv)

  	
  Consolidated
  EBITDA

  	
   

  
	
   

  	
   

  	
   

  	
  [Sum
  of (i) + (ii) + (iii) + (iv) +
  (v) + (vi) +

  	
   

  

 

 

	
   

  	
   

  	
   

  	
  (vii) +
  (viii) + (ix) + (x) + (xi) — (xii) — (xiii)]

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Consolidated
  Interest Expense

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  interest
  expense net of cash interest income

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  accrued
  interest required to be capitalized

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)

  	
  Consolidated
  Interest Expense

  	
   

  
	
   

  	
   

  	
   

  	
  [Sum
  of (i) + (ii)]

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Consolidated
  Interest Coverage Ratio

  	
   

  
	
   

  	
   

  	
  [(a)(xiv)/(b)(iii)]

  	
  :1.0

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Consolidated
  Net Leverage Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  total
  Indebtedness

  	
  $

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  unrestricted
  cash of the Borrower and its Domestic Subsidiaries in excess of $15,000,000

  	
  $

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Consolidated
  EBITDA

  	
   

  
	
   

  	
   

  	
  [1(a)(xiv) above]

  	
  $

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  Consolidated
  Leverage Ratio

  	
   

  
	
   

  	
   

  	
  [((a) —
  (b))/(c)]

  	
  :1.0

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Consolidated
  Leverage Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  total
  Indebtedness

  	
  $

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Consolidated
  EBITDA

  	
   

  
	
   

  	
   

  	
  [1(a)(xiv) above]

  	
  $

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Consolidated
  Leverage Ratio (Pricing)

  	
   

  
	
   

  	
   

  	
  [(a)/(b)]

  	
  :1.0

  

 

 

Exhibit 7.09

 

FORM OF JOINDER AGREEMENT

 

THIS
JOINDER AGREEMENT (the “Agreement”) dated as
of
                    ,
20       is by and between
                    ,
a                     
(the “New Subsidiary”), and Bank of America, N.A.,
in its capacity as Administrative Agent under that certain Credit Agreement
dated as of June 29, 2007 (as amended, modified, supplemented or extended
from time to time, the “Credit Agreement”) among Knoll, Inc., a
Delaware corporation (the “Borrower”), the Guarantors from time to time
party thereto, the Lenders from time to time party thereto and Bank of America,
N.A., as Administrative Agent, Swing Line Lender and
L/C Issuer.  Capitalized terms used
herein and not otherwise defined herein shall have the meanings assigned to
such terms in the Credit Agreement.

 

The
Loan Parties are required by Section 7.09 of the Credit Agreement
to cause the New Subsidiary to become a “Loan Party” thereunder.  Accordingly, the New Subsidiary hereby agrees
as follows with the Administrative Agent, for the benefit of the Lenders:

 

1.             The
New Subsidiary hereby acknowledges, agrees and confirms that, by its execution
of this Agreement, the New Subsidiary will be deemed to be a party to the
Credit Agreement and a “Guarantor” for all purposes of the Credit Agreement,
and shall have all of the obligations of a Guarantor thereunder
as if it had executed the Credit Agreement. 
The New Subsidiary hereby ratifies, as of the date hereof, and agrees to
be bound by, all of the terms, provisions and conditions applicable to the
Guarantors contained in the Credit Agreement. 
Without limiting the generality of the foregoing terms of this paragraph
1, the New Subsidiary hereby jointly and severally together with the other
Guarantors, guarantees to each Lender and the Administrative Agent, as provided
in Article IV of the Credit Agreement, the prompt payment and
performance of the Obligations in full when due (whether at stated maturity, as
a mandatory prepayment, by acceleration or otherwise) strictly in accordance
with the terms thereof.

 

2.             The
New Subsidiary hereby acknowledges, agrees and confirms that, by its execution
of this Agreement, the New Subsidiary will be deemed to be a party to the
Security Agreement and an “Obligor” for all purposes of the Security Agreement,
and shall have all the obligations of an Obligor thereunder
as if it had executed the Security Agreement. 
The New Subsidiary hereby ratifies, as of the date hereof, and agrees to
be bound by, all of the terms, provisions and conditions contained in the
Security Agreement.  Without limiting the
generality of the foregoing terms of this paragraph 2, the New Subsidiary
hereby grants, pledges and assignes to the
Administrative Agent, for the benefit of the holders of the Secured Obligations
(as defined in the Security Agreement), a continuing security interest in, and
a right of set off against, any and all right, title and interest of the New
Subsidiary in and to the Collateral (as defined in the Security Agreement),
including, but not limited to, the Equity Interests identified on Schedule 6
hereto, of the New Subsidiary to secure the prompt payment and performance in
full when due, whether by lapse of time, acceleration, mandatory prepayment or
otherwise, of the Secured Obligations (as defined in the Security Agreement).

 

3.             The
New Subsidiary hereby represents and warrants to the Administrative Agent and
the Lenders that:

 

(a)           The New Subsidiary’s exact legal name and state of
formation are as set forth on the signature pages hereto.

 

(b)           The New Subsidiary’s taxpayer identification number and
organization number are set forth on Schedule 1 hereto.

 

 

(c)           Other than as set forth on Schedule 2 hereto, the
New Subsidiary has not changed its legal name, changed its state of formation,
been party to a merger, consolidation or other change in structure in the five
years preceding the date hereof.

 

(d)           Schedule 3 hereto includes all of the trademarks,
service marks, trade names, copyrights, patents, patent rights, franchises,
licenses and other intellectual property rights (collectively, “IP Rights”)
registered or pending registration with the United States Copyright Office or
the United States Patent and Trademark Office and owned by the New Subsidiary
as of the date hereof.  None of the IP
Rights of the New Subsidiary set forth in Schedule 3 hereto is subject
to any licensing agreement or similar arrangement, except as set forth on Schedule
3 hereto.

 

(e)           Schedule 4 hereto includes all Commercial Tort
Claims before any Governmental Authority by or in favor of the New Subsidiary.

 

(f)            Schedule 5 hereto lists all real property located
in the United States that is owned or leased by the New Subsidiary as of the
date hereof.

 

(g)           Schedule 6 hereto includes each Subsidiary of the
New Subsidiary, including (i) jurisdiction of
formation, (ii) number of shares of each class of Equity Interests
outstanding, (iii) the certificate number(s) of the certificates
evidencing such Equity Interests and number and percentage of outstanding
shares of each class owned by the New Subsidiary (directly or indirectly) of
such Equity Interests and (iv) number and effect, if exercised, of all outstanding
options, warrants, rights of conversion or purchase and all other similar
rights with respect thereto.

 

4.             The
address of the New Subsidiary for purposes of all notices and other
communications is the address designated for all Loan Parties on Schedule
11.02 to the Credit Agreement or such other address as the New Subsidiary
may from time to time notify the Administrative Agent in writing.

 

5.             The
New Subsidiary hereby waives acceptance by the Administrative Agent and the
Lenders of the guaranty by the New Subsidiary under Article IV of
the Credit Agreement upon the execution of this Agreement by the New
Subsidiary.

 

6.             This
Agreement may be executed in multiple counterparts, each of which shall
constitute an original but all of which when taken together shall constitute
one contract.

 

7.             THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402
OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) WITHOUT REGARD TO
CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION.

 

 

IN
WITNESS WHEREOF, the New Subsidiary has caused this Joinder
Agreement to be duly executed by its authorized officer, and the Administrative
Agent, for the benefit of the Lenders, has caused the same to be accepted by
its authorized officer, as of the day and year first above written.

 

	
   

  	
  [NEW
  SUBSIDIARY]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

Acknowledged
and accepted:

 

BANK
OF AMERICA, N.A.,

as Administrative
Agent

 

	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

 

Schedule 1

 

Taxpayer Identification Number; Organizational Number

 

Schedule 2

 

Changes in Legal Name or State of Formation;

Mergers, Consolidations and other Changes in Structure

 

Schedule 3

 

IP Rights

 

Schedule 4

 

Commercial Tort Claims

 

Schedule 5

 

Real Property Locations

 

Schedule 6

 

Equity Interests

 

 

Exhibit 11.06

 

FORM OF ASSIGNMENT AND ASSUMPTION

 

This
Assignment and Assumption (this “Assignment and Assumption”) is dated as
of the Effective Date set forth below and is entered into by and between
[the][each](2) Assignor identified in item 1 below ([the][each, an] “Assignor”)
and [the][each](3) Assignee identified in item 2 below ([the][each, an] “Assignee”).  [It is understood and agreed that the rights
and obligations of [the Assignors][the Assignees](4) hereunder
are several and not joint.](5)  Capitalized terms used but not defined
herein shall have the meanings given to them in the Credit Agreement identified
below (the “Credit Agreement”), receipt of a copy of which is hereby
acknowledged by the Assignee.  The
Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby
agreed to and incorporated herein by reference and made a part of this Assignment
and Assumption as if set forth herein in full.

 

For
an agreed consideration, [the][each] Assignor hereby irrevocably sells and
assigns to [the Assignee][the respective Assignees], and [the][each] Assignee
hereby irrevocably purchases and assumes from [the Assignor][the respective
Assignors], subject to and in accordance with the Standard Terms and Conditions
and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below (i) all
of [the Assignor’s][the respective Assignors’] rights and obligations in [its
capacity as a Lender][their respective capacities as Lenders] under the Credit
Agreement and any other documents or instruments delivered pursuant thereto to
the extent related to the amount and percentage interest identified below of
all of such outstanding rights and obligations of [the Assignor][the respective
Assignors] under the respective facilities identified below (including, without
limitation, the Letters of Credit and the Swing Line Loans included in such
facilities(6)) and (ii) to the extent permitted to be assigned under
applicable law, all claims, suits, causes of action and any other right of [the
Assignor (in its capacity as a Lender)][the respective Assignors (in their
respective capacities as Lenders)] against any Person, whether known or
unknown, arising under or in connection with the Credit Agreement, any other
documents or instruments delivered pursuant thereto or the loan transactions
governed thereby or in any way based on or related to any of the foregoing,
including, but not limited to, contract claims, tort claims, malpractice
claims, statutory claims and all other claims at law or in equity related to
the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned
by [the][any] Assignor to [the][any] Assignee pursuant to clauses (i) and (ii) above being referred to herein
collectively as [the][an] “Assigned Interest”).  Each such sale and assignment is without
recourse to [the][any] Assignor and, except as
expressly provided in this Assignment and Assumption, without representation or
warranty by [the][any] Assignor.

 

1.             Assignor:

 

(2)           For bracketed language here and
elsewhere in this form relating to the Assignor(s), if the assignment is from a
single Assignor, choose the first bracketed language.  If the assignment is from multiple Assignors,
choose the second bracketed language.

(3)           For bracketed language here and
elsewhere in this form relating to the Assignee(s), if the assignment is to a
single Assignee, choose the first bracketed language.  If the assignment is to multiple Assignees,
choose the second bracketed language.

(4)           Select as appropriate.

(5)           Include bracketed language if there
are either multiple Assignors or multiple Assignees.

(6)           Include all applicable
subfacilities.

 

 

	
  2.

  	
  Assignee:

  	
                                                                [and
  is an Affiliate/Approved Fund of [identify Lender]]

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Borrower:

  	
  Knoll, Inc.,
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Administrative
  Agent:

  	
  Bank
  of America, N.A., as the administrative agent under
  the Credit Agreement

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Credit Agreement:

  	
  Credit Agreement dated as
  of June 29, 2007 (as amended, modified, supplemented or extended from
  time to time, the “Credit Agreement”) among Knoll, Inc., a
  Delaware corporation (the “Borrower”), the Guarantors from time to
  time party thereto, the Lenders from time to time party thereto and Bank of
  America, N.A., as Administrative Agent, Swing Line
  Lender and L/C Issuer. Capitalized terms used but not otherwise defined herein
  have the meanings provided in the Credit Agreement.

  

 

 

6.             Assigned
Interest:

 

	
  Facility
  Assigned

  	
   

  	
  Aggregate Amount of

  Commitment/Loans

  for all Lenders

  	
   

  	
  Amount of

  Commitment/Loans

  Assigned(7)

  	
   

  	
  Percentage Assigned of

  Commitment/Loans(8)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

7.             Trade
Date:

 

8.             Effective
Date:

 

The
terms set forth in this Assignment and Assumption are hereby agreed to:

 

	
  ASSIGNOR:

  	
  [NAME
  OF ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
  ASSIGNEE:

  	
  [NAME
  OF ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

(7) 
Amount to be adjusted by the counterparties to take into account any payments
or prepayments made between the Trade Date and the Effective Date.

(8) 
Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of
all Lenders thereunder.

 

 

	
  [Consented
  to and](9) Accepted:

  	
   

  
	
   

  	
   

  
	
  BANK
  OF AMERICA, N.A.,

  	
   

  
	
  as
  Administrative Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  [Consented
  to:](10)

  	
   

  
	
   

  	
   

  
	
  KNOLL, INC.,

  	
   

  
	
  a
  Delaware corporation

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  [Consented
  to:](11)

  	
   

  
	
   

  	
   

  
	
  BANK
  OF AMERICA, N.A.,

  	
   

  
	
  as
  L/C Issuer

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

(9)   To be
added only if the consent of the Administrative Agent is required by the terms
of the Credit Agreement.

(10)
To be added only if the consent of the Borrower is required by the terms of the
Credit Agreement.

(11)
To be added only if the consent of the L/C Issuer is required by the terms of
the Credit Agreement.

 

 

Annex 1 to Assignment and Assumption

 

STANDARD TERMS AND CONDITIONS

 

1.  Representations and Warranties.

 

1.1.          Assignor.  [The][Each] Assignor (a) represents and
warrants that (i) it is the legal and beneficial
owner of [the][[the relevant] Assigned Interest, (ii) [the][such] Assigned
Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it
has full power and authority, and has taken all action necessary, to execute
and deliver this Assignment and Assumption and to consummate the transactions
contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made
in or in connection with the Credit Agreement or any other Loan Document, (ii) the
execution, legality, validity, enforceability, genuineness, sufficiency or
value of the Loan Documents or any collateral thereunder,
(iii) the financial condition of the Borrower, any of its Subsidiaries or
Affiliates or any other Person obligated in respect of any Loan Document or (iv) the
performance or observance by the Borrower, any of its Subsidiaries or
Affiliates or any other Person of any of their respective obligations under any
Loan Document.

 

1.2.          Assignee.  [The][Each] Assignee (a) represents and
warrants that (i) it has full power and
authority, and has taken all action necessary, to execute and deliver this
Assignment and Assumption and to consummate the transactions contemplated
hereby and to become a Lender under the Credit Agreement, (ii) it meets
all the requirements to be an assignee under Section 11.06(b)(iv) and
(v) of the Credit Agreement (subject to such consents, if any, as
may be required under Section 11.06(b)(ii) of the Credit
Agreement), (iii) from and after the Effective Date, it shall be bound by
the provisions of the Credit Agreement as a Lender thereunder
and, to the extent of [the][the relevant] Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it is
sophisticated with respect to decisions to acquire assets of the type
represented by [the][such] Assigned Interest and either it, or the Person
exercising discretion in making its decision to acquire [the][such] Assigned
Interest, is experienced in acquiring assets of such type, (v) it has
received a copy of the Credit Agreement, and has received or has been accorded
the opportunity to receive copies of the most recent financial statements
delivered pursuant to Section 7.01 thereof, as applicable, and such
other documents and information as it deems appropriate to make its own credit
analysis and decision to enter into this Assignment and Assumption and to
purchase [the][such] Assigned Interest, (vi) 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 Assignment and Assumption and
to purchase [the][such] Assigned Interest, and (vii) if it is a Foreign
Lender, attached hereto is any documentation required to be delivered by it
pursuant to the terms of the Credit Agreement, duly completed and executed by
[the][such] Assignee; and (b) agrees that (i) it
will, independently and without reliance upon the Administrative Agent,
[the][any] Assignor or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Loan Documents, and (ii) it
will perform in accordance with their terms all of the obligations which by the
terms of the Loan Documents are required to be performed by it as a Lender.

 

2.             Payments.  From and after the Effective Date, the
Administrative Agent shall make all payments in respect of [the][each] Assigned
Interest (including payments of principal, interest, fees and other amounts) to
[the][the relevant] Assignor for amounts which have accrued 

 

 

to but excluding
the Effective Date and to [the][the relevant] Assignee for amounts which have
accrued from and after the Effective Date.

 

3.             General Provisions.  This Assignment and Assumption shall be
binding upon, and inure to the benefit of, the parties hereto and their respective
successors and assigns.  This Assignment
and Assumption may be executed in any number of counterparts, which together
shall constitute one instrument. 
Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a
manually executed counterpart of this Assignment and Assumption.  THIS ASSIGNMENT AND ASSUMPTION SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK
(INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK) WITHOUT REGARD TO CONFLICTS OF LAW
PRINCIPLES THAT WOULD REQUIRE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.Exhibit 4.1

 

 

 

SECOND AMENDED AND
RESTATED CREDIT AGREEMENT

 

Dated as of December 4,
2009

 

among

 

BLOUNT, INC.,

GEAR PRODUCTS,
INC, OMARK PROPERTIES, INC. and

WINDSOR FORESTRY
TOOLS LLC,

 

as Borrowers,

 

THE OTHER CREDIT
PARTIES SIGNATORY HERETO,

 

as Credit Parties,

 

THE LENDERS
SIGNATORY HERETO

 

FROM TIME TO TIME,

 

as Lenders,

 

GENERAL ELECTRIC
CAPITAL CORPORATION,

 

as Administrative
Agent and Lender,

 

and

 

GE CAPITAL
MARKETS, INC.,

 

as Lead Arranger
and Bookrunner

 

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  AMOUNT AND TERMS OF
  CREDIT

  	
  2

  
	
   

  	
  1.1

  	
  Credit Facilities

  	
  2

  
	
   

  	
  1.2

  	
  Letters of Credit

  	
  7

  
	
   

  	
  1.3

  	
  Prepayments

  	
  9

  
	
   

  	
  1.4

  	
  Use of Proceeds

  	
  11

  
	
   

  	
  1.5

  	
  Interest and Applicable
  Margins

  	
  11

  
	
   

  	
  1.6

  	
  Intentionally Omitted

  	
  14

  
	
   

  	
  1.7

  	
  Intentionally Omitted

  	
  14

  
	
   

  	
  1.8

  	
  Cash Management Systems

  	
  14

  
	
   

  	
  1.9

  	
  Fees

  	
  14

  
	
   

  	
  1.10

  	
  Receipt of Payments

  	
  14

  
	
   

  	
  1.11

  	
  Application and
  Allocation of Payments

  	
  15

  
	
   

  	
  1.12

  	
  Loan Account and
  Accounting

  	
  16

  
	
   

  	
  1.13

  	
  Indemnity

  	
  17

  
	
   

  	
  1.14

  	
  Access

  	
  18

  
	
   

  	
  1.15

  	
  Taxes

  	
  19

  
	
   

  	
  1.16

  	
  Capital Adequacy;
  Increased Costs; Illegality

  	
  20

  
	
   

  	
  1.17

  	
  Single Loan

  	
  21

  
	
  2.

  	
  CONDITIONS PRECEDENT

  	
  21

  
	
   

  	
  2.1

  	
  Conditions to the
  Initial Loans

  	
  21

  
	
   

  	
  2.2

  	
  Further Conditions to
  Each Loan

  	
  22

  
	
  3.

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
  23

  
	
   

  	
  3.1

  	
  Corporate Existence;
  Compliance with Law

  	
  23

  
	
   

  	
  3.2

  	
  Executive Offices,
  Collateral Locations, FEIN

  	
  23

  
	
   

  	
  3.3

  	
  Corporate Power,
  Authorization, Enforceable Obligations

  	
  24

  
	
   

  	
  3.4

  	
  Financial Statements
  and Projections

  	
  24

  
	
   

  	
  3.5

  	
  Material Adverse Effect

  	
  25

  
	
   

  	
  3.6

  	
  Ownership of Property;
  Liens

  	
  25

  
	
   

  	
  3.7

  	
  Labor Matters

  	
  26

  
	
   

  	
  3.8

  	
  Ventures, Subsidiaries and Affiliates; Outstanding
  Stock and Indebtedness

  	
  26

  

 

i

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.9

  	
  Government Regulation

  	
  26

  
	
   

  	
  3.10

  	
  Margin Regulations

  	
  27

  
	
   

  	
  3.11

  	
  Taxes

  	
  27

  
	
   

  	
  3.12

  	
  ERISA and Benefit Plans

  	
  28

  
	
   

  	
  3.13

  	
  No Litigation

  	
  28

  
	
   

  	
  3.14

  	
  Brokers

  	
  29

  
	
   

  	
  3.15

  	
  Intellectual Property

  	
  29

  
	
   

  	
  3.16

  	
  Full Disclosure

  	
  29

  
	
   

  	
  3.17

  	
  Environmental Matters

  	
  29

  
	
   

  	
  3.18

  	
  Insurance

  	
  30

  
	
   

  	
  3.19

  	
  Deposit and
  Disbursement Accounts

  	
  30

  
	
   

  	
  3.20

  	
  Government Contracts

  	
  30

  
	
   

  	
  3.21

  	
  Customer and Trade
  Relations

  	
  30

  
	
   

  	
  3.22

  	
  Agreements and Other
  Documents

  	
  31

  
	
   

  	
  3.23

  	
  Solvency

  	
  31

  
	
   

  	
  3.24

  	
  Status of Holdings

  	
  31

  
	
   

  	
  3.25

  	
  Subordinated Debt

  	
  31

  
	
   

  	
  3.26

  	
  Senior Debt

  	
  31

  
	
  4.

  	
  FINANCIAL STATEMENTS
  AND INFORMATION

  	
  32

  
	
   

  	
  4.1

  	
  Reports and Notices

  	
  32

  
	
   

  	
  4.2

  	
  Communication with
  Accountants

  	
  32

  
	
  5.

  	
  AFFIRMATIVE COVENANTS

  	
  32

  
	
   

  	
  5.1

  	
  Maintenance of
  Existence and Conduct of Business

  	
  32

  
	
   

  	
  5.2

  	
  Payment of Charges

  	
  33

  
	
   

  	
  5.3

  	
  Books and Records

  	
  33

  
	
   

  	
  5.4

  	
  Insurance; Damage to or
  Destruction of Collateral

  	
  33

  
	
   

  	
  5.5

  	
  Compliance with Laws

  	
  35

  
	
   

  	
  5.6

  	
  Supplemental Disclosure

  	
  35

  
	
   

  	
  5.7

  	
  Intellectual Property

  	
  35

  
	
   

  	
  5.8

  	
  Environmental Matters

  	
  35

  

 

ii

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.9

  	
  Landlords’ Agreements,
  Mortgagee Agreements, Bailee Letters and Real Estate Purchases

  	
  36

  
	
   

  	
  5.10

  	
  Further Assurances

  	
  37

  
	
   

  	
  5.11

  	
  Credit Rating

  	
  37

  
	
   

  	
  5.12

  	
  Intentionally Omitted

  	
  37

  
	
   

  	
  5.13

  	
  New Subsidiaries

  	
  37

  
	
  6.

  	
  NEGATIVE COVENANTS

  	
  38

  
	
   

  	
  6.1

  	
  Mergers, Subsidiaries,
  Etc.

  	
  38

  
	
   

  	
  6.2

  	
  Investments; Loans and
  Advances

  	
  41

  
	
   

  	
  6.3

  	
  Indebtedness

  	
  43

  
	
   

  	
  6.4

  	
  Employee Loans and
  Affiliate Transactions

  	
  45

  
	
   

  	
  6.5

  	
  Capital Structure and
  Business

  	
  45

  
	
   

  	
  6.6

  	
  Guaranteed Indebtedness

  	
  46

  
	
   

  	
  6.7

  	
  Liens

  	
  46

  
	
   

  	
  6.8

  	
  Sale of Stock and
  Assets

  	
  47

  
	
   

  	
  6.9

  	
  ERISA and Benefit Plans

  	
  47

  
	
   

  	
  6.10

  	
  Financial Covenants

  	
  47

  
	
   

  	
  6.11

  	
  Hazardous Materials

  	
  47

  
	
   

  	
  6.12

  	
  Sale-Leasebacks

  	
  48

  
	
   

  	
  6.13

  	
  Cancellation of
  Indebtedness

  	
  48

  
	
   

  	
  6.14

  	
  Restricted Payments

  	
  48

  
	
   

  	
  6.15

  	
  Change of Corporate
  Name or Location; Change of Fiscal Year

  	
  48

  
	
   

  	
  6.16

  	
  No Impairment of
  Intercompany Transfers

  	
  49

  
	
   

  	
  6.17

  	
  No Speculative
  Transactions

  	
  49

  
	
   

  	
  6.18

  	
  Changes Relating to
  Subordinated Debt; Material Contracts

  	
  49

  
	
  7.

  	
  TERM

  	
  49

  
	
   

  	
  7.1

  	
  Termination

  	
  49

  
	
   

  	
  7.2

  	
  Survival of Obligations
  Upon Termination of Financing Arrangements

  	
  49

  
	
  8.

  	
  EVENTS OF DEFAULT;
  RIGHTS AND REMEDIES

  	
  50

  
	
   

  	
  8.1

  	
  Events of Default

  	
  50

  

 

iii

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.2

  	
  Remedies

  	
  52

  
	
   

  	
  8.3

  	
  Waivers by Credit
  Parties

  	
  52

  
	
  9.

  	
  ASSIGNMENT AND
  PARTICIPATIONS; APPOINTMENT OF AGENT

  	
  53

  
	
   

  	
  9.1

  	
  Assignments and
  Participations

  	
  53

  
	
   

  	
  9.2

  	
  Appointment of Agent

  	
  56

  
	
   

  	
  9.3

  	
  Agent’s Reliance, Etc.

  	
  56

  
	
   

  	
  9.4

  	
  GE Capital and
  Affiliates

  	
  57

  
	
   

  	
  9.5

  	
  Lender Credit Decision

  	
  57

  
	
   

  	
  9.6

  	
  Indemnification

  	
  58

  
	
   

  	
  9.7

  	
  Successor Agent

  	
  58

  
	
   

  	
  9.8

  	
  Setoff and Sharing of
  Payments

  	
  59

  
	
   

  	
  9.9

  	
  Advances; Payments;
  Non-Funding Lenders; Information; Actions in Concert

  	
  59

  
	
   

  	
  9.10

  	
  Collateral Matters

  	
  62

  
	
   

  	
  9.11

  	
  Additional Agents

  	
  63

  
	
   

  	
  9.12

  	
  Distribution of
  Materials to Lenders and L/C Issuers

  	
  63

  
	
  10.

  	
  SUCCESSORS AND ASSIGNS

  	
  65

  
	
   

  	
  10.1

  	
  Successors and Assigns

  	
  65

  
	
  11.

  	
  MISCELLANEOUS

  	
  65

  
	
   

  	
  11.1

  	
  Complete Agreement;
  Modification of Agreement

  	
  65

  
	
   

  	
  11.2

  	
  Amendments and Waivers

  	
  65

  
	
   

  	
  11.3

  	
  Fees and Expenses

  	
  67

  
	
   

  	
  11.4

  	
  No Waiver

  	
  68

  
	
   

  	
  11.5

  	
  Remedies

  	
  68

  
	
   

  	
  11.6

  	
  Severability

  	
  68

  
	
   

  	
  11.7

  	
  Conflict of Terms

  	
  69

  
	
   

  	
  11.8

  	
  Confidentiality

  	
  69

  
	
   

  	
  11.9

  	
  GOVERNING LAW

  	
  69

  
	
   

  	
  11.10

  	
  Notices

  	
  70

  
	
   

  	
  11.11

  	
  Section Titles

  	
  71

  

 

iv

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.12

  	
  Counterparts

  	
  71

  
	
   

  	
  11.13

  	
  WAIVER OF JURY TRIAL

  	
  71

  
	
   

  	
  11.14

  	
  Press Releases and
  Related Matters

  	
  71

  
	
   

  	
  11.15

  	
  Reinstatement

  	
  71

  
	
   

  	
  11.16

  	
  Advice of Counsel

  	
  72

  
	
   

  	
  11.17

  	
  No Strict Construction

  	
  72

  
	
   

  	
  11.18

  	
  Currency Equivalent
  Generally

  	
  72

  
	
   

  	
  11.19

  	
  Judgment Currency

  	
  72

  
	
   

  	
  11.20

  	
  Intentionally Omitted

  	
  73

  
	
   

  	
  11.21

  	
  Amendment and
  Restatement

  	
  73

  
	
  12.

  	
  CROSS-GUARANTY

  	
  73

  
	
   

  	
  12.1

  	
  Cross-Guaranty

  	
  73

  
	
   

  	
  12.2

  	
  Waivers by Borrowers

  	
  74

  
	
   

  	
  12.3

  	
  Benefit of Guaranty

  	
  74

  
	
   

  	
  12.4

  	
  Subordination of
  Subrogation, Etc.

  	
  74

  
	
   

  	
  12.5

  	
  Election of Remedies

  	
  75

  
	
   

  	
  12.6

  	
  Limitation

  	
  75

  
	
   

  	
  12.7

  	
  Contribution with
  Respect to Guaranty Obligations

  	
  76

  
	
   

  	
  12.8

  	
  Liability Cumulative

  	
  76

  
	
   

  	
  12.9

  	
  USA Patriot Act Notice

  	
  76

  

 

v

 

INDEX OF APPENDICES

 

	
  Annex A (Recitals)

  	
   

  	
  -

  	
   

  	
  Definitions

  
	
  Annex B (Section 1.2)

  	
   

  	
  -

  	
   

  	
  Letters of Credit

  
	
  Annex C (Section 1.8)

  	
   

  	
  -

  	
   

  	
  Cash Management System

  
	
  Annex D (Section 2.1(a))

  	
   

  	
  -

  	
   

  	
  Closing Checklist

  
	
  Annex E (Section 4.1(a))

  	
   

  	
  -

  	
   

  	
  Financial Statements
  and Projections — Reporting

  
	
  Annex F (Section 4.1(b))

  	
   

  	
  -

  	
   

  	
  Collateral Reports

  
	
  Annex G (Section 6.10)

  	
   

  	
  -

  	
   

  	
  Financial Covenants

  
	
  Annex H (Section 9.9(a))

  	
   

  	
  -

  	
   

  	
  Lenders’ Wire Transfer
  Information

  
	
  Annex I (Section 11.10)

  	
   

  	
  -

  	
   

  	
  Notice Addresses

  
	
  Annex
  J (from Annex A - Commitments definition)

  	
   

  	
   

  	
   

  	
  Commitments as of
  Closing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit 1.1(a)(i)

  	
   

  	
  -

  	
   

  	
  Form of Notice of
  Revolving Credit Advance

  
	
  Exhibit 1.1(a)(ii)

  	
   

  	
  -

  	
   

  	
  Form of Revolving
  Note

  
	
  Exhibit 1.1(b)(i)

  	
   

  	
  -

  	
   

  	
  Form of Existing
  Term Loan Note

  
	
  Exhibit 1.1(b)(ii)

  	
   

  	
  -

  	
   

  	
  Form of Extending
  Term Loan Note

  
	
  Exhibit 1.1(c)(ii)

  	
   

  	
  -

  	
   

  	
  Form of Swing Line
  Note

  
	
  Exhibit 1.5(f)(i)

  	
   

  	
  -

  	
   

  	
  Form of Notice of
  Conversion/Continuation-LIBOR

  
	
  Exhibit 5.13

  	
   

  	
  -

  	
   

  	
  Form of Credit
  Agreement Joinder Agreement

  
	
  Exhibit 9.1(c)

  	
   

  	
  -

  	
   

  	
  Form of Assignment
  Agreement

  
	
  Exhibit B-1

  	
   

  	
  -

  	
   

  	
  Application for Standby
  Letter of Credit

  
	
  Exhibit B-2

  	
   

  	
  -

  	
   

  	
  Application for
  Documentary Letter of Credit

  
	
  Schedule 1.1

  	
   

  	
  -

  	
   

  	
  Agent’s Representatives

  
	
  Disclosure Schedule 1.4

  	
   

  	
  -

  	
   

  	
  Sources and Uses; Funds
  Flow Memorandum

  
	
  Disclosure Schedule 3.1

  	
   

  	
  -

  	
   

  	
  Type of Entity; State
  of Organization

  
	
  Disclosure Schedule 3.2

  	
   

  	
  -

  	
   

  	
  Executive Offices,
  Collateral Locations, FEIN, Organizational Identification Number

  
	
  Disclosure Schedule
  3.3(e)

  	
   

  	
  -

  	
   

  	
  Conflicts

  
	
  Disclosure Schedule
  3.4(A)

  	
   

  	
  -

  	
   

  	
  Financial Statements

  
	
  Disclosure Schedule
  3.4(B)

  	
   

  	
  -

  	
   

  	
  Pro Forma

  
	
  Disclosure Schedule
  3.4(C)

  	
   

  	
  -

  	
   

  	
  Projections

  
	
  Disclosure Schedule 3.6

  	
   

  	
  -

  	
   

  	
  Real Estate and Leases

  
	
  Disclosure Schedule 3.7

  	
   

  	
  -

  	
   

  	
  Labor Matters

  
	
  Disclosure Schedule 3.8

  	
   

  	
  -

  	
   

  	
  Ventures, Subsidiaries
  and Affiliates; Outstanding Stock

  
	
  Disclosure Schedule
  3.11

  	
   

  	
  -

  	
   

  	
  Tax Matters

  
	
  Disclosure Schedule
  3.12

  	
   

  	
  -

  	
   

  	
  ERISA Plans

  
	
  Disclosure Schedule
  3.13

  	
   

  	
  -

  	
   

  	
  Litigation

  
	
  Disclosure Schedule
  3.15

  	
   

  	
  -

  	
   

  	
  Intellectual Property

  
	
  Disclosure Schedule
  3.17

  	
   

  	
  -

  	
   

  	
  Hazardous Materials

  
	
  Disclosure Schedule
  3.18

  	
   

  	
  -

  	
   

  	
  Insurance

  
	
  Disclosure Schedule
  3.19

  	
   

  	
  -

  	
   

  	
  Deposit and
  Disbursement Accounts

  
	
  Disclosure Schedule
  3.20

  	
   

  	
  -

  	
   

  	
  Government Contracts

  
	
  Disclosure Schedule
  3.21

  	
   

  	
  -

  	
   

  	
  Customer and Trade
  Relations

  
	
  Disclosure Schedule
  3.22

  	
   

  	
  -

  	
   

  	
  Material Agreements

  
	
  Disclosure Schedule 5.1

  	
   

  	
  -

  	
   

  	
  Trade Names

  
	
  Disclosure Schedule 6.3

  	
   

  	
  -

  	
   

  	
  Indebtedness

  

 

vi

 

	
  Disclosure Schedule
  6.4(a)

  	
   

  	
  -

  	
   

  	
  Transactions with
  Affiliates

  
	
  Disclosure Schedule 6.7

  	
   

  	
  -

  	
   

  	
  Existing Liens

  

 

vii

 

Execution Copy

 

This
SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”), dated
as of December 4, 2009, by and among BLOUNT, INC., a Delaware corporation
(“Blount, Inc.”), GEAR PRODUCTS, INC., an Oklahoma corporation (“Gear”),
OMARK PROPERTIES, INC., an Oregon corporation (“Omark”), WINDSOR
FORESTRY TOOLS LLC, a Tennessee limited liability company (“Windsor”)
(Gear, Omark, Windsor and Blount, Inc. are sometimes collectively referred
to herein as “Borrowers” and individually as “Borrower”); the other
Credit Parties signatory hereto; GENERAL ELECTRIC CAPITAL CORPORATION, a
Delaware corporation (in its individual capacity, “GE Capital”), in its
capacity as Agent for the Lenders (as defined below) (“Agent”); and the
other Lenders party hereto.

 

RECITALS

 

WHEREAS,
Borrowers, Lenders (as defined in the Prior Credit Agreement), and Agent are
parties to that certain Amended and Restated Credit Agreement dated as of August 9,
2004 (the “Prior Credit Agreement”); and

 

WHEREAS,
Lenders (as defined in the Prior Credit Agreement) and Agent are hereinafter
referred to as the “Prior Lender Group”; and

 

WHEREAS,
Borrowers desire that the Prior Lender Group amend and restate the Prior Credit
Agreement to, among other things, modify the credit facilities to provide for a
Revolving Loan Commitment of $60,000,000 and a Term Loan B of $107,465,301.84
consisting of an Existing Term Loan in a principal amount equal to
$3,937,893.06 and an Extending Term Loan in a principal amount equal to
$103,527,408.78, and the Prior Lender Group and the other Lenders party hereto
are willing to do so in accordance with, and subject to the terms and
conditions set forth in, this Agreement; and

 

WHEREAS,
each Borrower acknowledges and agrees that the security interest granted to
Agent for the benefit of Prior Lender Group, or any of them, pursuant to the
Loan Documents (as defined in the Prior Credit Agreement), shall remain
outstanding and in full force and effect in accordance with the Prior Credit
Agreement and the other Loan Documents (as defined in the Prior Credit
Agreement), as modified herein and in the other Loan Documents, and shall
continue to secure the Obligations; and

 

WHEREAS,
Borrowers and Lenders acknowledge and confirm that: (i) the Obligations
represent, among other things, the amendment, restatement, renewal, extension,
consolidation and modification of the Obligations (as defined in the Prior
Credit Agreement) arising in connection with the Prior Credit Agreement and
other Loan Documents (as defined in the Prior Credit Agreement); (ii) the
Prior Credit Agreement and the other Loan Documents (as defined in the Prior
Credit Agreement) and the collateral pledged thereunder shall secure, without
interruption or impairment of any kind, all existing Obligations (as defined in
the Prior Credit Agreement) under the Prior Credit Agreement and the other Loan
Documents (as defined in the Prior Credit Agreement) as amended, restated,
renewed, extended, consolidated or modified hereunder and under the other Loan
Documents, together with all other Obligations 

 

 

hereunder; (iii) all Liens evidenced by the Loan
Documents (as defined in the Prior Credit Agreement) are hereby ratified,
confirmed and continued as modified, amended or restated under the Loan
Documents; and (iv) this Agreement is intended to restate, renew, extend,
consolidate, amend and modify the Prior Credit Agreement in its entirety; and

 

WHEREAS,
Borrowers and Lenders intend that: (i) the provisions of the Prior Credit
Agreement and the other Loan Documents (as defined in the Prior Credit
Agreement), to the extent restated, renewed, extended, consolidated, amended or
modified hereby and by the other Loan Documents, be hereby superseded and
replaced by the provisions hereof and of the other Loan Documents; and (ii) by
entering into and performing their respective obligations hereunder, this
transaction shall not constitute a novation and shall in no way adversely
affect or impair the priority of Liens granted by the Loan Documents (as
defined in the Prior Credit Agreement); and

 

WHEREAS,
capitalized terms used in this Agreement shall have the meanings ascribed to
them in Annex A and, for purposes of this Agreement and the other Loan
Documents, the rules of construction set forth in Annex A
shall govern.  All Annexes, Disclosure
Schedules, Exhibits and other attachments (collectively, “Appendices”)
hereto, or expressly identified in this Agreement, are incorporated herein by
reference, and taken together with this Agreement, shall constitute a single
agreement.  These Recitals shall be
construed as part of the Agreement.

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants
hereinafter contained, and for other good and valuable consideration, the
parties hereto hereby amend and restate the Prior Loan Agreement in its
entirety and further agree as follows:

 

1.                                       AMOUNT AND TERMS OF CREDIT

 

1.1                                 Credit Facilities.

 

(a)                                  Revolving Credit Facility.

 

(i)                                     Subject to the terms and conditions
hereof, each Revolving Lender agrees to make available to Borrowers from time
to time until the Commitment Termination Date its Pro Rata Share of advances
under the Revolving Loan Commitment (each, a “Revolving Credit Advance”).  All “Revolving Credit Advances” under, and as
defined in, the Prior Credit Agreement that are outstanding on the Closing Date
shall be deemed to be Revolving Credit Advances hereunder.  The Pro Rata Share of the Revolving Loan of
any Lender shall not at any time exceed its separate Revolving Loan Commitment.  The obligations of each Lender hereunder
shall be several and not joint.  Until
the Commitment Termination Date, Borrowers may borrow, repay and reborrow under
this Section 1.1(a)(i); provided that the amount of any
Revolving Credit Advance to be made at any time shall not exceed Borrowing
Availability at such time.  Each
Revolving Credit Advance shall be made on notice by Borrower Representative on
behalf of the applicable Borrower to one of the representatives of Agent
identified in Schedule 1.1 at the address specified therein.  Any such notice must be given no later than (1) 1:00 p.m.
(New York time) on the Business Day of the proposed Revolving Credit Advance,
in the case of an Index Rate Loan, or (2) 1:00 p.m. (New York time)
on the date which is 3 Business Days prior to the proposed Revolving Credit
Advance, in the case of a LIBOR Loan.  

 

2

 

Each such notice (a “Notice
of Revolving Credit Advance”) must be given in writing (by telecopy or
overnight courier) substantially in the form of Exhibit 1.1(a)(i),
and shall include the information required in such Exhibit and such other
information as may be reasonably required by Agent.  If any Borrower desires to have the
Revolving Credit Advances bear interest by reference to a LIBOR Rate, Borrower
Representative must comply with Section 1.5(f).

 

(ii)                                  Upon request by any Revolving Lender,
each Borrower shall execute and deliver to such Lender a note to evidence the
Revolving Loan Commitment of that Lender. 
Each note shall be in the principal amount of the Revolving Loan
Commitment of the applicable Lender, dated the Closing Date and substantially
in the form of Exhibit 1.1(a)(ii)  (each a “Revolving Note”
and, collectively, the “Revolving Notes”). Each Revolving Note (or, if a
Revolving Note is not requested, this Agreement) shall represent the joint and
several obligation of Borrowers to pay the amount of the applicable Lender’s
Revolving Loan Commitment or, if less, such Lender’s Pro Rata Share of the
aggregate unpaid principal amount of all Revolving Credit Advances to
Borrowers, together with interest thereon as prescribed in Section 1.5.  The entire unpaid balance of the aggregate
Revolving Loan and all other non-contingent Obligations shall be immediately
due and payable in full in immediately available funds on the Commitment
Termination Date.

 

(b)                                 Term Loans.

 

(i)                                     Existing Term Loan.

 

(1)                                  Subject to the terms and conditions
hereof, each Lender with an Existing Term Loan Commitment agrees that the loans
comprising the “Term Loan B” under, and as defined in, the Prior Credit
Agreement shall remain outstanding on and after the Closing Date as term loans
(collectively, the “Existing Term Loan”) made pursuant to this
Agreement, and such loans shall be deemed to be made in satisfaction of its
obligation to make its Pro Rata Share of the Existing Term Loan on the Closing
Date.  Upon request by any Lender with a
Existing Term Loan Commitment, each Borrower shall execute and deliver to such
Lender a promissory note substantially in the form of Exhibit 1.1(b)(i) (each
an “Existing Term Loan Note” and collectively the “Existing Term Loan
Notes”).  Each Existing Term Loan
Note (or, if an Existing Term Loan Note is not requested, this Agreement) shall
represent the joint and several obligation of Borrowers to pay the applicable
Existing Term Loan Commitment, together with interest hereon as prescribed in Section 1.5.

 

(2)                                  Borrowers shall repay the principal
balance of the Existing Term Loan in consecutive quarterly installments on the
first day of January, April, July and October of each year,
commencing January 1, 2010, as follows:

 

3

 

	
  Payment
  Dates

  	
   

  	
  Installment
  Amounts

  	
   

  
	
  January 1,
  2010

  	
   

  	
  $

  	
  10,228.29

  	
   

  
	
  April 1,
  2010

  	
   

  	
  $

  	
  10,228.29

  	
   

  
	
  July 1,
  2010

  	
   

  	
  $

  	
  10,228.29

  	
   

  
	
  August 9,
  2010

  	
   

  	
  $

  	
  3,907,208.19

  	
   

  

 

The final
installment due August 9, 2010 shall be in the amount of $3,907,208.19 or,
if different, the remaining principal balance of the Existing Term Loan,
together with accrued interest and all fees, costs, expenses and other charges
due by Borrowers with respect to the Existing Term Loan.

 

(3)                                  Notwithstanding Section 1.1(b)(i)(2),
the aggregate outstanding principal balance of the Existing Term Loan shall be
due and payable in full in immediately available funds on the Commitment Termination
Date applicable to the Existing Term Loan, if not sooner paid in full.  No payment with respect to the Existing Term
Loan may be reborrowed.

 

(ii)                                  Extending Term Loan.

 

(1)                                  Subject to the terms and conditions
hereof, each Lender with an Extending Term Loan Commitment agrees that the
loans comprising the “Term Loan B” under, and as defined in, the Prior Credit
Agreement shall remain outstanding on and after the Closing Date as term loans
(collectively, the “Extending Term Loan”) made pursuant to this
Agreement, and such loans shall be deemed to be made in satisfaction of its
obligation to make its Pro Rata Share of the Extending Term Loan on the Closing
Date.  Upon request by any Lender with a
Extending Term Loan Commitment, each Borrower shall execute and deliver to such
Lender a promissory note substantially in the form of Exhibit 1.1(b)(ii) (each
an “Extending Term Loan Note” and collectively the “Extending Term
Loan Notes”).  Each Extending Term
Loan Note (or, if an Extending Term Loan Note is not requested, this Agreement)
shall represent the joint and several obligation of Borrowers to pay the
applicable Extending Term Loan Commitment, together with interest hereon as
prescribed in Section 1.5.

 

(2)                                  Borrowers shall repay the Extending Term
Loan in quarterly installments on the first day of January, April, July and
October of each year, commencing January 1, 2010, as follows:

 

4

 

	
  Payment
  Dates

  	
   

  	
  Installment
  Amounts

  	
   

  
	
  January 1,
  2010

  	
   

  	
  $

  	
  268,902.36

  	
   

  
	
  April 1,
  2010

  	
   

  	
  $

  	
  268,902.36

  	
   

  
	
  July 1,
  2010

  	
   

  	
  $

  	
  268,902.36

  	
   

  
	
  October 1,
  2010 

  	
   

  	
  $

  	
  268,902.36

  	
   

  
	
  January 1,
  2011

  	
   

  	
  $

  	
  268,902.36

  	
   

  
	
  April 1,
  2011

  	
   

  	
  $

  	
  268,902.36

  	
   

  
	
  July 1,
  2011

  	
   

  	
  $

  	
  268,902.36

  	
   

  
	
  October 1,
  2011 

  	
   

  	
  $

  	
  268,902.36

  	
   

  
	
  January 1,
  2012,

  	
   

  	
  $

  	
  268,902.36

  	
   

  
	
  February 9,
  2012

  	
   

  	
  $

  	
  101,107,287.54

  	
   

  

 

The final
installment due February 9, 2012 shall be in the amount of $101,107,287.54
or, if different, the remaining principal balance of the Extending Term Loan,
together with accrued interest and all fees, costs, expenses and other charges
due by Borrowers with respect to the Extending Term Loan.

 

(3)                                  Notwithstanding Section 1.1(b)(ii)(2),
the aggregate outstanding principal balance of the Extending Term Loan shall be
due and payable in full in immediately available funds on the Commitment
Termination Date applicable to the Extending Term Loan, if not sooner paid in
full.  No payment with respect to the
Extending Term Loan may be reborrowed.

 

(c)                                  Swing Line Facility.

 

(i)                                     Agent shall notify the Swing Line Lender
upon Agent’s receipt of any Notice of Revolving Credit Advance.  Subject to the terms and conditions hereof,
the Swing Line Lender may, in its discretion, make available from time to time
until the Commitment Termination Date advances (each, a “Swing Line Advance”)
in accordance with any such notice. The provisions of this Section 1.1(c) shall
not relieve the Revolving Lenders of their obligations to make Revolving Credit
Advances under Section 1.1(a); provided that if the Swing
Line Lender makes a Swing Line Advance pursuant to any such notice, such Swing
Line Advance shall be in lieu of any Revolving Credit Advance that otherwise
may be made by the Revolving Lenders pursuant to such notice.  The aggregate amount of Swing Line Advances
outstanding shall not exceed at any time the lesser of (A) the Swing Line
Commitment and (B) the Maximum Amount, in each case under clauses (A) and
(B) of this sentence, less the outstanding balance of the Revolving Loan
at such time (“Swing Line Availability”).  Until the Commitment Termination Date,
Borrowers may from time to time borrow, repay and reborrow under this Section 1.1(c).  Each Swing Line Advance shall be made
pursuant to a Notice of Revolving Credit Advance delivered to Agent by Borrower
Representative on behalf of the applicable Borrower in accordance with Section 1.1(a).  Any such notice must be given no later than
1:00 p.m. (New York time) on the Business Day of the proposed Swing Line
Advance.  Unless the Swing Line Lender
has received at least one Business Day’s prior written notice from Requisite
Revolving Lenders instructing it not to make a Swing Line Advance, the Swing
Line Lender shall, notwithstanding the failure of any condition precedent set
forth in Sections 2.2, be entitled to fund that Swing Line Advance, and
to have each Revolving Lender make Revolving Credit 

 

5

 

Advances in accordance
with Section 1.1(c)(iii) or purchase participating interests
in accordance with Section 1.1(c)(iv).  Notwithstanding any other provision of this
Agreement or the other Loan Documents, the Swing Line Loan shall constitute an
Index Rate Loan.  Borrowers shall repay
the aggregate outstanding principal amount of the Swing Line Loan upon demand
therefor by Agent.

 

(ii)                                  Upon request by the Swing Line Lender,
Borrowers shall execute and deliver to the Swing Line Lender a promissory note
to evidence the Swing Line Commitment. 
Such note shall be in the principal amount of the Swing Line Commitment
of the Swing Line Lender, dated the Closing Date and substantially in the form
of Exhibit 1.1(c)(ii)  (the “Swing Line Note”).  The Swing Line Note (or, if the Swing Line
Note is not requested, this Agreement) shall represent the joint and several
obligation of Borrowers to pay the amount of the Swing Line Commitment or, if
less, the aggregate unpaid principal amount of all Swing Line Advances made to
Borrowers, together with interest thereon as prescribed in Section 1.5.  The entire unpaid balance of the Swing Line
Loan and all other noncontingent Obligations shall be immediately due and
payable in full in immediately available funds on the Commitment Termination
Date if not sooner paid in full.

 

(iii)                               If no Revolving Lender is a Non-Funding
Lender, then the Swing Line Lender, at any time and from time to time in its
sole and absolute discretion, but not less frequently than weekly, shall on
behalf of Borrowers (and each Borrower hereby irrevocably authorizes the Swing
Line Lender to so act on its behalf) request each Revolving Lender (including
the Swing Line Lender) to make a Revolving Credit Advance to Borrowers (which
shall be an Index Rate Loan) in an amount equal to that Revolving Lender’s Pro
Rata Share of the principal amount of Borrowers’ Swing Line Loan (the “Refunded
Swing Line Loan”) outstanding on the date such notice is given.  If any Revolving Lender is a Non-Funding
Lender, that Non-Funding Lender’s reimbursement obligations with respect to the
Swing Line Loans shall be reallocated to and assumed by the other Revolving
Lenders pro rata in accordance with their Pro Rata Share of the Revolving Loans
(calculated as if the Non-Funding Lender’s Pro Rata Share was reduced to zero
and each other Revolving Lender’s Pro Rata Share had been increased
proportionately).  If any Revolving
Lender is a Non-Funding Lender, upon receipt of the demand described above,
each Revolving Lender that is not a Non-Funding Lender will be obligated to pay
to Agent for the account of the Swing Line Lender its Pro Rata Share of the
outstanding Swing Line Loans (increased as described above); provided that no
Revolving Lender shall be required to fund any amount in excess of its
Revolving Loan Commitment. Unless any of the events described in Sections
8.1(h) or 8.1(i) has occurred (in which event the procedures of Section 1.1(c)(iv) shall
apply) and regardless of whether the conditions precedent set forth in this
Agreement to the making of a Revolving Credit Advance are then satisfied, each
Revolving Lender shall disburse directly to Agent, its Pro Rata Share of a
Revolving Credit Advance on behalf of the Swing Line Lender prior to 3:00 p.m.
(New York time) in immediately available funds on the Business Day next
succeeding the date that notice is given. 
The proceeds of those Revolving Credit Advances shall be immediately paid
to the Swing Line Lender and applied to repay the Refunded Swing Line Loan of
Borrowers.

 

(iv)                              If, prior to refunding a Swing Line Loan
with a Revolving Credit Advance pursuant to Section 1.1(c)(iii),
one of the events described in Sections 8.1(h) or 8.1(i) has
occurred, then, subject to the provisions of Section 1.1(c)(v) below,
each Revolving Lender 

 

6

 

shall, on the date such
Revolving Credit Advance was to have been made for the benefit of the Borrowers,
purchase from the Swing Line Lender an undivided participation interest in the
Swing Line Loan to Borrowers in an amount equal to its Pro Rata Share of such
Swing Line Loan.  Upon request, each
Revolving Lender shall promptly transfer to the Swing Line Lender, in
immediately available funds, the amount of its participation interest.

 

(v)                                 Each Revolving Lender’s obligation to
make Revolving Credit Advances in accordance with Section 1.1(c)(iii) and
to purchase participation interests in accordance with Section 1.1(c)(iv) shall
be absolute and unconditional and shall not be affected by any circumstance,
including (A) any setoff, counterclaim, recoupment, defense or other right
that such Revolving Lender may have against the Swing Line Lender, any Borrower
or any other Person for any reason whatsoever; (B) the occurrence or
continuance of any Default or Event of Default; (C) any inability of any
Borrower to satisfy the conditions precedent to borrowing set forth in this
Agreement at any time or (D) any other circumstance, happening or event
whatsoever, whether or not similar to any of the foregoing.  If any Revolving Lender does not make
available to Agent or the Swing Line Lender, as applicable, the amount required
pursuant to Sections 1.1(c)(iii) or 1.1(c)(iv), as the case
may be, the Swing Line Lender shall be entitled to recover such amount on
demand from such Revolving Lender, together with interest thereon for each day
from the date of non-payment until such amount is paid in full at the Federal
Funds Rate for the first two (2) Business Days and at the Index Rate
thereafter.

 

(d)                                 Reliance on Notices; Appointment of
Borrower Representative.  Agent shall be entitled to
rely upon, and shall be fully protected in relying upon, any Notice of
Revolving Credit Advance, Notice of Conversion/Continuation-LIBOR Rate or
similar notice believed by Agent to be genuine. 
Agent may assume that each Person executing and delivering any notice in
accordance herewith was duly authorized, unless the responsible individual acting
thereon for Agent has actual knowledge to the contrary.  Each Borrower hereby designates Blount, Inc.
as its representative and agent on its behalf for the purposes of issuing
Notices of Revolving Credit Advances and Notices of Conversion/Continuation-LIBOR
Rate, giving instructions with respect to the disbursement of the proceeds of
the Loans, selecting interest rate options, requesting Letters of Credit,
giving and receiving all other notices and consents hereunder or under any of
the other Loan Documents and taking all other actions (including in respect of
compliance with covenants) on behalf of any Borrower or Borrowers under the
Loan Documents.  Borrower Representative
hereby accepts such appointment.  Agent
and each Lender may regard any notice or other communication pursuant to any
Loan Document from Borrower Representative as a notice or communication from
all Borrowers, and may give any notice or communication required or permitted
to be given to any Borrower or Borrowers hereunder to Borrower Representative
on behalf of such Borrower or Borrowers. 
Each Borrower agrees that each notice, election, representation and
warranty, covenant, agreement and undertaking made on its behalf by Borrower
Representative shall be deemed for all purposes to have been made by such
Borrower and shall be binding upon and enforceable against such Borrower to the
same extent as if the same had been made directly by such Borrower.

 

1.2                                 Letters of Credit. 
Subject to and in accordance with the terms and conditions contained
herein and in Annex B, Borrower Representative, on behalf of the
applicable Borrower, shall have the right to request, and the Revolving Lenders
agree to incur, or purchase participations in, Letter of Credit Obligations in
respect of each Borrower.

 

7

 

1.2A.                    Swap Related Reimbursement Obligations.

 

(a)                                  Borrowers, jointly and severally, agree
to reimburse GE Capital in immediately available funds in the amount of any
payment made by GE Capital under a Swap Related L/C (such reimbursement
obligation, whether contingent upon payment by GE Capital under the Swap
Related L/C or otherwise, being herein called a “Swap Related Reimbursement
Obligation”).  No Swap Related
Reimbursement Obligation for any Swap Related L/C may exceed the amount of the
payment obligations owed by any Borrower under the interest rate protection or
hedging agreement or transaction supported by the Swap Related L/C.

 

(b)                                 A Swap Related Reimbursement Obligation
shall be due and payable by Borrowers within one (1) Business Day after
the date on which the related payment is made by GE Capital under the Swap
Related L/C.

 

(c)                                  Any Swap Related Reimbursement Obligation
shall, during the period in which it is unpaid, bear interest at the rate per
annum equal to the LIBOR Rate applicable to Revolving Loans plus one percent
(1%), as if the unpaid amount of the Swap Related Reimbursement Obligation were
a LIBOR Loan, and not at any otherwise applicable Default Rate.  Such interest shall be payable upon
demand.  The following additional
provisions apply to the calculation and charging of interest by reference to
the LIBOR Rate applicable to Revolving Loans:

 

(i)                                     The LIBOR Rate applicable to Revolving
Loans shall be determined for each successive one-month LIBOR Period during
which the Swap Related Reimbursement Obligation is unpaid, notwithstanding the
occurrence of any Event of Default and even if the LIBOR Period were to extend
beyond the Commitment Termination Date.

 

(ii)                                  If a Swap Related Reimbursement
Obligation is paid during a monthly period for which the LIBOR Rate applicable
to Revolving Loans is determined, interest shall be pro-rated and charged for
the portion of the monthly period during which the Swap Related Reimbursement
Obligation was unpaid.  Section 1.13(b) shall
not apply to any payment of a Swap Related Reimbursement Obligation during the
monthly period.

 

(iii)                               Notwithstanding anything to the contrary in the
definition of “LIBOR Rate”, if the LIBOR Rate applicable to Revolving Loans is
no longer available from Reuters, the LIBOR Rate with respect to Swap Related
Reimbursement Obligations shall be determined by GE Capital from such financial
reporting service or other information available to GE Capital as in GE Capital’s
reasonable discretion indicates GE Capital’s cost of funds.

 

(d)                                 Except as provided in the foregoing
provisions of this Section 1.2A and in Section 11.3, Borrowers
shall not be obligated to pay to GE Capital or any of its Affiliates any Letter
of Credit Fee, or any other fees, charges or expenses, in respect of a Swap
Related L/C or arranging for any interest rate protection or hedging agreement
or transaction supported by the Swap Related L/C.  GE Capital and its Affiliates shall look to
the beneficiary of a Swap Related L/C for payment of any such letter of credit
fees or other fees, charges or expenses and such beneficiary may factor such
fees, charges, or expenses into the pricing of any interest rate protection or
hedging arrangement or transaction supported by the Swap Related L/C.

 

8

 

(e)                                  If any Swap Related L/C is revocable
prior to its scheduled expiry date, GE Capital agrees not to revoke the Swap
Related L/C unless the earliest of the Commitment Termination Date or an Event
of Default has occurred.

 

(f)                                    GE Capital or any of its Affiliates shall
be permitted to (i) provide confidential or other information furnished to
it by any of the Credit Parties (including, without limitation, copies of any
documents and information in or referred to in the Closing Checklist, Financial
Statements and Compliance Certificates) to a beneficiary or potential
beneficiary of a Swap Related L/C and (ii) receive confidential or other
information from the beneficiary or potential beneficiary relating to any
agreement or transaction supported or to be supported by the Swap Related
L/C.  However, no confidential
information shall be provided to any Person under this paragraph unless the
Person has agreed to comply with the covenant substantially as contained in Section 11.8
of this Agreement.

 

1.3                                 Prepayments.

 

(a)                                  Voluntary Prepayments; Reductions in
Revolving Loan Commitment.  Borrowers may at any time on
at least five (5) days’ prior written notice by Borrower Representative to
Agent (i) voluntarily prepay all or part of the Term Loan B and/or (ii) permanently
reduce (but not terminate) the Revolving Loan Commitment; provided that (A) any
such prepayments or reductions shall be in a minimum amount of $1,000,000 and
integral multiples of $100,000 in excess of such amount, (B) the Revolving
Loan Commitment shall not be reduced to an amount less than the amount of the
Revolving Loan then outstanding and (C) after giving effect to such
reductions in the Revolving Loan Commitment, Borrowers shall comply with Section 1.3(b)(i).  In addition, Borrowers may at any time on at
least five (5) days’ prior written notice by Borrower Representative to
Agent terminate the Revolving Loan Commitment; provided that upon such
termination, all Loans and other Obligations shall be immediately due and
payable in full and all Letter of Credit Obligations shall be cash
collateralized or otherwise satisfied in accordance with Annex B
hereto.  Any voluntary prepayment of
Loans and any reduction or termination of the Revolving Loan Commitment must be
accompanied by payment of any LIBOR Rate breakage costs in accordance with Section 1.13(b).  Upon any such reduction or termination of the
Revolving Loan Commitment, each applicable Borrower’s right to request (I) Revolving
Credit Advances, (II) that Letter of Credit Obligations be incurred on its
behalf, or (III) Swing Line Advances, shall simultaneously be permanently
reduced or terminated, as the case may be; provided that a permanent
reduction of the Revolving Loan Commitment shall not require a reduction in the
L/C Sublimit unless the Revolving Loan Commitment is reduced to an amount below
the L/C Sublimit.  Each notice of partial
prepayment shall designate the Loans or other Obligations to which such
prepayment is to be applied; provided that any partial prepayments of
any Term Loan made by or on behalf of any Borrower shall be applied to prepay
the scheduled installments of the applicable Borrowers’ Term Loan on a pro rata
basis.

 

(b)                                 Mandatory Prepayments.

 

(i)                                     If at any time the aggregate outstanding
balances of the Revolving Loan and the Swing Line Loan exceed the Maximum
Amount, Borrowers shall immediately repay the aggregate outstanding Revolving
Credit Advances to the extent required to eliminate 

 

9

 

such
excess.  If any such excess remains after
repayment in full of the aggregate outstanding Revolving Credit Advances,
Borrowers shall provide cash collateral for the Letter of Credit Obligations in
the manner set forth in Annex B to the extent required to eliminate such
excess.

 

(ii)                                  Immediately upon receipt by any Credit
Party of proceeds of any asset disposition or any sale of Stock of any
Subsidiary of any Credit Party (excluding Excluded Proceeds), it shall forward
such proceeds to the Borrowers and Borrowers shall prepay the Loans in an
amount equal to all such proceeds, net of (A) commissions and other
reasonable and customary transaction costs, fees and expenses (including
reasonable attorney’s fees and investment banking fees) properly attributable
to such transaction and payable by Credit Parties in connection therewith (in
each case, paid to non-Affiliates), (B) transfer taxes, goods and services
taxes and sales taxes, as applicable, (C) amounts payable to holders of
senior Liens (to the extent such Liens constitute Permitted Encumbrances
hereunder), if any, (D) an appropriate reserve for income taxes in
accordance with GAAP in connection therewith and (E) cash amounts required
to be maintained as a reserve or in escrow against any such asset sale or sale
of Stock in an amount not to exceed twenty percent (20%) of the purchase price
of such assets or Stock, until such amounts are received by such Credit
Party.  Notwithstanding the foregoing,
unless an Event of Default shall have occurred and be continuing or would
result therefrom, Credit Parties may elect to reinvest such net proceeds from
any asset disposition by delivering a certificate of the Borrower
Representative to Agent that (1) states that the Credit Parties intend to
reinvest such net proceeds in the business of a Credit Party within 365 days of
the date of such sale and (2) confirms that such net proceeds have been (x) deposited
into an account that is subject to a Control Letter or a control agreement meeting
the requirements of Annex C, which net proceeds when so deposited (i) shall
constitute Collateral, securing the payment of the Obligations then
outstanding, (ii) may be withdrawn by the applicable Credit Party solely
to reinvest in other assets of such Credit Party that are useful in the
business of such Credit Party and (iii) upon the occurrence and during the
continuance of an Event of Default, an amount equal to such net proceeds shall
be applied to the repayment of the Obligations as set forth above or (y) used
to repay the Revolving Loan (in whole or in part) on a temporary basis and if
so used to repay the Revolving Loan and notwithstanding anything herein to the
contrary such amount may be reborrowed only for the purpose of funding such
reinvestment or if the Reinvestment Period (as defined below) has expired and
such amount has not been reinvested pursuant to this Section to make the
mandatory prepayment required by this Section; provided, that (a) such
reinvestment must be made within 365 days (the “Reinvestment Period”)
after the date of such sale, and (b) no Event of Default shall have
occurred and be continuing at the time of such reinvestment or after giving
effect thereto.  If and to the extent
such net proceeds are not fully reinvested during the Reinvestment Period, an
amount equal to such net proceeds is required to be applied to repay the
Obligations as set forth above.

 

(iii)                               If Holdings issues Stock (other than Excluded Stock
Issuances), no later than the Business Day following the date of receipt of the
proceeds thereof, Holdings shall contribute such proceeds to Blount, Inc.
and Blount, Inc. shall prepay the Loans in an amount equal to all such
proceeds, net of underwriting discounts and commissions and other reasonable
costs (including reasonable attorney’s fees and investment banking fees) paid
to non-Affiliates in connection therewith.

 

10

 

(iv)                              Until the Termination Date, Blount, Inc.
shall prepay the Obligations on the date that is ten (10) days after the
earlier of (A) the date on which Holdings’ and its Subsidiaries’ annual
audited Financial Statements for the immediately preceding Fiscal Year are
delivered pursuant to Annex E or (B) the date on which such annual
audited Financial Statements were required to be delivered pursuant to Annex
E, in an amount equal to fifty percent (50%) of Excess Cash Flow for the
immediately preceding Fiscal Year.  Each
such prepayment shall be accompanied by a certificate signed by Borrower
Representative’s chief financial officer certifying the manner in which Excess
Cash Flow and the resulting prepayment were calculated, which certificate shall
be in form and substance reasonably satisfactory to Agent.

 

(c)                                  Status of Commitments after Mandatory
Prepayments.  Neither the Revolving Loan Commitment nor the
Swing Line Commitment shall be permanently reduced by the amount of any
prepayments under Section 1.3(b).

 

(d)                                 Status of Commitments after Prepayments
from Insurance and Condemnation Proceeds.  Neither the
Revolving Loan Commitment nor the Swing Line Commitment shall be permanently
reduced by the amount of any prepayments made from insurance or condemnation proceeds.

 

(e)                                  No Implied Consent. 
Nothing in this Section 1.3 shall be construed to constitute
Agent’s or any Lender’s consent to any transaction that is not permitted by
other provisions of this Agreement or the other Loan Documents.

 

1.4                                 Use of Proceeds. 
Borrowers shall utilize the proceeds of the Loans solely for the
Refinancing (and to pay any related transaction expenses), to fund Fees and
expenses incurred in connection with the Loans and for the financing of Borrowers’
ordinary working capital and general corporate needs, including, without
limitation, capital expenditures permitted hereunder.  Disclosure Schedule (1.4) contains a
description of Borrowers’ sources and uses of funds as of the Closing Date,
including Loans and Letter of Credit Obligations to be made or incurred on that
date, and a funds flow memorandum detailing how funds from each source are to
be transferred to particular uses.

 

1.5                                 Interest and Applicable Margins.

 

(a)                                  Borrowers shall pay interest to Agent,
for the ratable benefit of Lenders, in accordance with the various Loans being
made by each Lender, in arrears on each applicable Interest Payment Date, at
the following rates: (i) with respect to the Revolving Credit Advances,
the Index Rate plus the Applicable Revolver Index Margin per annum or, at the
election of Borrower Representative, the applicable LIBOR Rate plus the
Applicable Revolver LIBOR Margin per annum, based on the aggregate Revolving
Credit Advances outstanding from time to time; (ii) with respect to the
Swing Line Loan, the Index Rate plus the Applicable Revolver Index Margin per
annum, based on the aggregate Swing Line Loans outstanding from time to time; (iii) with
respect to the Existing Term Loan, the Index Rate plus the Applicable Existing
Term Loan Index Margin per annum or, at the election of Borrower
Representative, the applicable LIBOR Rate plus the Applicable Existing Term
Loan LIBOR Margin per annum, based on the aggregate Existing Term Loan
outstanding from time to time; and (iv) with respect 

 

11

 

to the Extending Term
Loan, the Index Rate plus the Applicable Extending Term Loan Index Margin per
annum or, at the election of Borrower Representative, the applicable LIBOR Rate
plus the Applicable Extending Term Loan LIBOR Margin per annum, based on the
aggregate Extending Term Loan outstanding from time to time.

 

The Applicable
Margins are as follows:

 

	
  Applicable
  Revolver Index Margin

  	
   

  	
  3.25

  	
  %

  
	
  Applicable
  Revolver LIBOR Margin

  	
   

  	
  5.00

  	
  %

  
	
  Applicable
  Existing Term Loan Index Margin

  	
   

  	
  0.00

  	
  %

  
	
  Applicable
  Existing Term Loan LIBOR Margin

  	
   

  	
  1.75

  	
  %

  
	
  Applicable
  Extending Term Loan Index Margin

  	
   

  	
  2.50

  	
  %

  
	
  Applicable
  Extending Term Loan LIBOR Margin

  	
   

  	
  3.50

  	
  %

  
	
  Applicable
  Unused Line Fee Margin

  	
   

  	
  1.00

  	
  %

  

 

(b)                                 Intentionally Omitted.

 

(c)                                  If any payment on any Loan becomes due
and payable on a day other than a Business Day, the maturity thereof will be
extended to the next succeeding Business Day (except as set forth in the
definition of LIBOR Period) and, with respect to payments of principal,
interest thereon shall be payable at the then applicable rate during such
extension.

 

(d)                                 All computations of Fees calculated on a
per annum basis and interest shall be made by Agent on the basis of a 360-day
year, in each case for the actual number of days occurring in the period for
which such interest and Fees are payable. 
The Index Rate is a floating rate determined for each day.  Each determination by Agent of an interest
rate and Fees hereunder shall be final, binding and conclusive on Borrowers,
absent manifest error.

 

(e)                                  So long as an Event of Default has
occurred and is continuing under Section 8.1(a), (h) or (i) or
so long as any other Event of Default with respect to Annex C, E, F or G
has occurred and is continuing and at the election of Agent (or upon the
written request of Requisite Lenders) confirmed by written notice from Agent to
Borrower Representative, subject to applicable law, the interest rates
applicable to the Loans and the Letter of Credit Fees shall be increased by two
percentage points (2.00%) per annum above the rates of interest or the rate of
such Fees otherwise applicable hereunder (the “Default Rate”), and all
outstanding Obligations shall bear interest at the Default Rate applicable to
such Obligations. Interest and Letter of Credit 

 

12

 

Fees at the Default Rate
shall accrue from the initial date of such Event of Default until that Event of
Default is waived and shall be payable upon demand.

 

(f)                                    Borrower Representative shall have the
option to (A) request that any Revolving Credit Advance be made as a LIBOR
Loan, (B) convert at any time all or any part of outstanding Loans (other
than the Swing Line Loan) from Index Rate Loans to LIBOR Loans, (C) convert
any LIBOR Loan to an Index Rate Loan, subject to payment of LIBOR breakage
costs in accordance with Section 1.13(b) if such conversion is
made prior to the expiration of the LIBOR Period applicable thereto, or (D) continue
all or any portion of any Loan (other than the Swing Line Loan) as a LIBOR Loan
upon the expiration of the applicable LIBOR Period and the succeeding LIBOR
Period of that continued Loan shall commence on the first day after the last
day of the LIBOR Period of the Loan to be continued; provided, however,
that no Loan or group of Loans shall be made as, converted to, or continued at
the end of the LIBOR Period therefor as a LIBOR Loan if any Default or Event of
Default has occurred and is continuing and no Loan may be made as a LIBOR Loan
until the earlier of 60 days following the Closing Date or the date the
Administrative Agent has determined that the syndication of the Commitments has
been completed.  Any Loan or group of
Loans having the same proposed LIBOR Period to be made or continued as, or converted
into, a LIBOR Loan must be in a minimum amount of $5,000,000 and integral
multiples of $100,000 in excess of such amount. 
Any such election must be made by 1:00 p.m. (New York time) on the
3rd Business Day prior to (1) the date of any proposed Advance which is to
bear interest at the LIBOR Rate, (2) the end of each LIBOR Period with
respect to any LIBOR Loans to be continued as such, or (3) the date on
which Borrower Representative wishes to convert any Index Rate Loan to a LIBOR
Loan for a LIBOR Period designated by Borrower Representative in such
election.  If no election is received
with respect to a LIBOR Loan by 1:00 p.m. (New York time) on the 3rd
Business Day prior to the end of the LIBOR Period with respect thereto (or if a
Default or an Event of Default has occurred and is continuing), that LIBOR Loan
shall be converted to an Index Rate Loan at the end of its LIBOR Period.  Borrower Representative must make such
election by notice to Agent in writing by telecopy or overnight courier.  In the case of any conversion or
continuation, such election must be made pursuant to a written notice (a “Notice
of Conversion/Continuation-LIBOR Rate”) in the form of Exhibit 1.5(f)(i).

 

(g)                                 Notwithstanding anything to the contrary
set forth in this Section 1.5, if a court of competent jurisdiction
determines in a final order that the rate of interest payable with respect to
the Obligations exceeds the highest rate of interest permissible under law (the
“Maximum Lawful Rate”), then so long as the Maximum Lawful Rate would be
so exceeded, the rate of interest payable hereunder shall be equal to the
Maximum Lawful Rate; provided, however, that if at any time thereafter
the rate of interest payable hereunder is less than the Maximum Lawful Rate,
Borrowers shall continue to pay interest hereunder at the Maximum Lawful Rate
until such time as the total interest received by Agent, on behalf of Lenders,
is equal to the total interest that would have been received had the interest
rate payable with respect to the Obligations been (but for the operation of
this paragraph) the interest rate payable since the Closing Date as otherwise
provided in this Agreement. Thereafter, interest hereunder shall be paid at the
rate(s) of interest and in the manner provided in Sections 1.5(a) through
(f), unless and until the rate of interest again exceeds the Maximum
Lawful Rate, and at that time this paragraph shall again apply.  In no event shall the total interest received
by any Lender pursuant to the terms hereof exceed the amount that such Lender
could lawfully have received had the 

 

13

 

interest due hereunder
been calculated for the full term hereof at the Maximum Lawful Rate.  If the Maximum Lawful Rate is calculated
pursuant to this paragraph, such interest shall be calculated at a daily rate
equal to the Maximum Lawful Rate divided by the number of days in the year in
which such calculation is made.  If,
notwithstanding the provisions of this Section 1.5(g), a court of
competent jurisdiction shall finally determine that a Lender has received
interest hereunder in excess of the Maximum Lawful Rate, Agent shall, to the
extent permitted by applicable law, promptly apply such excess in the order
specified in Section 1.11 and thereafter shall refund any excess to
Borrowers or as a court of competent jurisdiction may otherwise order.

 

(h)                                 Intentionally Omitted.

 

(i)                                     Intentionally Omitted.

 

1.6                                 Intentionally Omitted.

 

1.7                                 Intentionally Omitted.

 

1.8                                 Cash Management Systems. 
On or prior to the Closing Date, Borrowers will establish and will
maintain until the Termination Date, the cash management systems described in Annex
C (the “Cash Management Systems”).

 

1.9                                 Fees.

 

(a)                                  Fee Letter Fees. 
Blount, Inc. shall pay to GE Capital, individually, the Fees
specified in that certain fee letter dated as of October 30, 2009 among
Blount, Inc. and GE Capital (as amended, restated, supplemented or
otherwise modified from time to time, the “GE Capital Fee Letter”), at
the times specified for payment therein.

 

(b)                                 Unused Line Fees. 
As additional compensation for the Revolving Lenders, Borrowers shall
pay to Agent, for the ratable benefit of such Lenders, in arrears, on the first
Business Day of each month prior to the Commitment Termination Date and on the
Commitment Termination Date, a Fee for Borrowers’ non-use of available funds in
an amount equal to the Applicable Unused Line Fee Margin per annum (calculated
on the basis of a 360 day year for actual days elapsed) multiplied by the
difference between (x) the Maximum Amount (as it may be reduced from time
to time) and (y) the average for the period of the daily closing balances
of the aggregate Revolving Loan and the Swing Line Loan outstanding during the
period for which such Fee is due.

 

(c)                                  Intentionally Omitted.

 

(d)                                 Intentionally Omitted.

 

(e)                                  Borrowers shall pay to Agent, for the
ratable benefit of the Revolving Lenders, the Letter of Credit Fee as provided
in Annex B.

 

1.10                           Receipt of Payments. 
Borrowers shall make each payment under this Agreement not later than
2:00 p.m. (New York time) on the day when due in immediately available
funds in 

 

14

 

Dollars to the Collection
Account.  For purposes of computing
interest and Fees and determining Borrowing Availability as of any date, all
payments shall be deemed received on the Business Day on which immediately
available funds therefor are received in the applicable Collection Account
prior to 2:00 p.m. New York time. 
Payments received after 2:00 p.m. (New York time) on any Business
Day or on a day that is not a Business Day shall be deemed to have been
received on the following Business Day. 
Unless stated otherwise, all calculations, comparisons, measurements or
determinations under this Agreement shall be made in Dollars.  For purposes of such calculations,
comparisons, measurements or determinations, amounts denominated in other
currencies shall be converted in the Equivalent Amount of Dollars on the date
of calculation, comparison, measurement or determination.  If Agent receives any payment from or on
behalf of any Credit Party in a currency other than the currency in which such
Obligation is denominated, Agent may convert the payment (including the
monetary proceeds of realization upon any Collateral and any funds then held in
a cash collateral account) into the currency of the relevant Obligation at the
exchange rate that Agent would be prepared to sell the currency in which the
relevant Obligation is denominated against the currency received on the Business
Day immediately preceding the date of actual payment.  The Obligations shall be satisfied only to
the extent of the amount actually received by Agent upon such conversion.

 

1.11                           Application and Allocation of Payments.

 

(a)                                  So long as no Event of Default has
occurred and is continuing, (i) payments consisting of proceeds of
Accounts received in the ordinary course of business shall be applied, in the
case of receipt by or on behalf of any Borrower, first, to the Swing
Line Loan and, second, the Revolving Loan; (ii) payments (other
than mandatory prepayments) matching specific scheduled payments then due shall
be applied to those scheduled payments; (iii) voluntary prepayments shall
be applied as set forth in Section 1.3(a) hereof; and (iv) mandatory
prepayments shall be applied as set forth in Sections 1.11(b) and 1.11(c) hereof.  All payments and prepayments applied to a
particular Loan shall be applied ratably to the portion thereof held by each
Lender as determined by its Pro Rata Share. 
As to any other payment, and as to all payments made when an Event of
Default has occurred and is continuing or following the Commitment Termination
Date, Borrowers hereby irrevocably waive the right to direct the application of
any and all payments received from or on behalf of Borrowers, and Borrowers
hereby irrevocably agree that Agent shall have the continuing exclusive right
to apply any and all such payments against the Obligations as Agent may deem
advisable notwithstanding any previous entry by Agent in the Loan Account or
any other books and records.  In the
absence of a specific determination by Agent with respect thereto, payments
shall be applied to amounts then due and payable in the following order: (1) to
Fees and Agent’s expenses reimbursable hereunder and to all obligations owing
to Agent, the Swing Line Lender, any L/C Issuer or any other Lender by any
Non-Funding Lender under the Loan Documents; (2) to interest on the Swing
Line Loan; (3) to principal payments on the Swing Line Loan; (4) to
interest on the other Loans and unpaid Swap Related Reimbursement Obligations,
ratably in proportion to the interest accrued as to each Loan and unpaid Swap
Related Reimbursement Obligation, as applicable; (5) to principal payments
on the other Loans and unpaid Swap Related Reimbursement Obligations and other
unpaid Obligations under Hedge Agreements permitted under Section 6.3(a)(viii) and
to provide cash collateral for Letter of Credit Obligations in the manner
described in Annex B, ratably to the aggregate, combined principal
balance of the other Loans, unpaid Swap Related 

 

15

 

Reimbursement Obligations
and outstanding Letter of Credit Obligations; and (6) to all other
Obligations including expenses of Lenders to the extent reimbursable under Section 11.3.

 

(b)                                 Any prepayments made by any Borrower
pursuant to Section 1.3(b)(ii) and any prepayments made by any
Borrower from insurance or condemnation proceeds in accordance with Section 5.4(c) and
the Mortgage(s) shall be applied as follows: (i) proceeds from the
sale of Inventory and Accounts and insurance proceeds from casualties or losses
to cash or Inventory shall be applied, first, to the Swing Line Loans;
and second, to the Revolving Credit Advances, and (ii) all other proceeds
and any proceeds from the sale of Inventory and Accounts or from casualties or
losses to cash or Inventory remaining after application to the Swing Line Loans
and the Revolving Credit Advances shall be applied, first, to Fees and
reimbursable expenses of Agent then due and payable pursuant to any of the Loan
Documents and to all obligations owing to Agent, the Swing Line Lender, any L/C
Issuer or any other Lender by any Non-Funding Lender under the Loan Documents; second,
to interest then due and payable on the Term Loan B; third, to prepay
the principal installments of the Term Loan B on a pro rata basis; fourth,
to interest then due and payable on Borrowers’ Swing Line Loan; fifth,
to the principal balance of the Swing Line Loan outstanding until the same has
been repaid in full; sixth, to interest then due and payable on
Revolving Credit Advances; seventh, to the principal balance of
Revolving Credit Advances outstanding until the same have been paid in full; eighth,
to any Letter of Credit Obligations of Borrower to provide cash collateral
therefor in the manner set forth in Annex B; ninth, to all other
Obligations then due and payable.  
Notwithstanding the foregoing, if an Event of Default has occurred and
is continuing, any such prepayments shall be applied as set forth in Section 1.11(a).

 

(c)                                  Any prepayments made by Blount, Inc.
pursuant to Sections 1.3(b)(iii) or (b)(iv) shall be applied
as follows: first, to Fees and reimbursable expenses of Agent then due
and payable pursuant to any of the Loan Documents and to all obligations owing
to Agent, the Swing Line Lender, any L/C Issuer or any other Lender by any
Non-Funding Lender under the Loan Documents; second, pro rata to
interest then due and payable on the Term Loan B; third, to prepay the principal
installments of the Term Loan B on a pro rata basis; fourth, to interest
then due and payable on Borrowers’ Swing Line Loan; fifth, to the
principal balance of the Swing Line Loan outstanding until the same has been
repaid in full; sixth, to interest then due and payable on Revolving
Credit Advances; seventh, to the principal balance of Revolving Credit
Advances outstanding until the same have been paid in full; eighth, to
any Letter of Credit Obligations of Borrower to provide cash collateral therefor
in the manner set forth in Annex B; ninth, to all other Obligations then
due and payable.  Notwithstanding the
foregoing, if an Event of Default has occurred and is continuing, any such
prepayments shall be applied as set forth in Section 1.11(a).

 

1.12                           Loan Account and Accounting. 
Agent shall maintain a loan account (the “Loan Account”) on its
books to record:  all Revolving Credit
Advances, Swing Line Advances, Letters of Credit and the Term Loan B, all
payments made by Borrowers, and all other debits and credits as provided in
this Agreement with respect to the Loans or any other Obligations.  All entries in the Loan Account shall be made
in accordance with Agent’s customary accounting practices as in effect from
time to time. The balance in the Loan Account, as recorded on Agent’s most
recent printout or other written statement, shall, absent manifest error, be
presumptive evidence of the amounts due and owing to Agent and Lenders by each
Borrower; provided that any failure 

 

16

 

to so record or any error
in so recording shall not limit or otherwise affect any Borrower’s duty to pay
the Obligations.  Agent shall render to
Borrower Representative a monthly accounting of transactions with respect to
the Loans setting forth the balance of the Loan Account and for the immediately
preceding month.  Unless Borrower
Representative notifies Agent in writing of any objection to any such
accounting (specifically describing the basis for such objection), within thirty
(30) days after the date thereof, each and every such accounting shall (absent
manifest error) be deemed final, binding and conclusive on the applicable
Borrowers in all respects as to all matters reflected therein.  Only those items expressly objected to in
such notice shall be deemed to be disputed by the applicable Borrowers.  Notwithstanding any provision herein
contained to the contrary, any Lender may elect (which election may be revoked)
to dispense with the issuance of Notes to that Lender and may rely on the
applicable Loan Account as evidence of the amount of the applicable Obligations
from time to time owing to it. 
Regardless of whether any Note or Notes are issued, each Borrower
promises to pay the Obligations as and when due.

 

1.13                           Indemnity.

 

(a)                                  Each Credit Party that is a signatory
hereto shall jointly and severally indemnify and hold harmless each of Agent,
Lenders and their respective Affiliates, and each such Person’s respective
officers, directors, employees, attorneys, agents and representatives, (each,
an “Indemnified Person”), from and against any and all suits, actions,
proceedings, claims, damages, losses, liabilities and expenses (including
reasonable attorneys’ fees and disbursements and other costs of investigation
or defense, including those incurred upon any appeal) that may be instituted or
asserted against or incurred by any such Indemnified Person as the result of
credit having been extended, suspended or terminated under this Agreement and
the other Loan Documents and the administration of such credit, and in
connection with or arising out of the transactions contemplated hereunder and
thereunder and any actions or failures to act in connection therewith,
including any and all Environmental Liabilities and legal costs and expenses
arising out of or incurred in connection with disputes between or among any
parties to any of the Loan Documents (collectively, “Indemnified Liabilities”);
provided, that no such Credit Party shall be liable for any
indemnification to an Indemnified Person to the extent that any such suit,
action, proceeding, claim, damage, loss, liability or expense results from
that  Indemnified Person’s gross
negligence or willful misconduct.  NO
INDEMNIFIED PERSON SHALL BE RESPONSIBLE OR LIABLE TO ANY OTHER PARTY TO ANY
LOAN DOCUMENT, ANY SUCCESSOR, ASSIGNEE OR THIRD PARTY BENEFICIARY OF SUCH
PERSON OR ANY OTHER PERSON ASSERTING CLAIMS DERIVATIVELY THROUGH SUCH PARTY,
FOR INDIRECT, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES WHICH MAY BE
ALLEGED AS A RESULT OF CREDIT HAVING BEEN EXTENDED, SUSPENDED OR TERMINATED
UNDER ANY LOAN DOCUMENT OR AS A RESULT OF ANY OTHER TRANSACTION CONTEMPLATED
HEREUNDER OR THEREUNDER.

 

(b)                                 To induce Lenders to provide the LIBOR
Rate option on the terms provided herein, if (i) any LIBOR Loans are
repaid in whole or in part prior to the last day of any applicable LIBOR Period
(whether that repayment is made pursuant to any provision of this Agreement or
any other Loan Document or occurs as a result of acceleration, by operation of
law or otherwise); (ii) any Borrower shall default in payment when due of
the principal amount of or 

 

17

 

interest on any LIBOR
Loan; (iii) any Borrower shall refuse to accept any borrowing of, or shall
request a termination of, any borrowing of, conversion into or continuation of,
LIBOR Loans after Borrower Representative has given notice requesting the same
in accordance herewith; or (iv) any Borrower shall fail to make any
prepayment of a LIBOR Loan after Borrower Representative has given a notice
thereof in accordance herewith, then Borrowers shall indemnify and hold
harmless each affected Lender from and against all losses, costs and expenses
resulting from or arising from any of the foregoing.  Such indemnification shall include any loss
(including loss of margin) or expense arising from the reemployment of funds
obtained by it or from fees payable to terminate deposits from which such funds
were obtained.  For the purpose of
calculating amounts payable to a Lender under this subsection, each Lender
shall be deemed to have actually funded its relevant LIBOR Loan through the
purchase of a deposit bearing interest at the applicable LIBOR Rate in an
amount equal to the amount of that LIBOR Loan and having a maturity comparable
to the relevant LIBOR Period; provided, that each Lender may fund each
of its LIBOR Loans in any manner it sees fit, and the foregoing assumption
shall be utilized only for the calculation of amounts payable under this
subsection.  This covenant shall survive
the termination of this Agreement and the payment of the Obligations and all
other amounts payable hereunder.  As
promptly as practicable under the circumstances, each Lender shall provide
Borrower Representative with its written calculation of all amounts payable
pursuant to this Section 1.13(b), and such calculation shall be
binding on the parties hereto unless Borrower Representative shall object in
writing within ten (10) Business Days of receipt thereof, specifying the
basis for such objection in detail.

 

1.14                           Access.  Each Credit
Party that is a party hereto shall, during normal business hours, from time to
time upon one Business Day’s prior notice as frequently as Agent reasonably
determines to be appropriate: (a) provide Agent and any of its respective
officers, employees and agents access to its properties, facilities, advisors
and employees (including officers) of each Credit Party and to the Collateral, (b) permit
Agent and any of its officers, employees and agents, to inspect, audit and make
extracts from any Credit Party’s books and records, and (c) permit Agent
and its officers, employees and agents, to inspect, review, evaluate and make
test verifications and counts of the Accounts, Inventory and other Collateral
of any Credit Party.  Notwithstanding the
foregoing or anything else herein or any other Loan Document to the contrary,
if a Default or Event of Default has occurred and is continuing or if access is
necessary to preserve or protect the Collateral as determined by Agent, each
such Credit Party shall provide such access to Agent and to each Lender at all
times and without advance notice. 
Furthermore, so long as any Event of Default has occurred and is
continuing, Borrowers shall use reasonable efforts to provide Agent and each
Lender with access to their suppliers and customers.  Each Credit Party shall make available to
Agent and their counsel, as quickly as is possible under the circumstances,
originals or copies of all books and records that Agent may reasonably request.  Each Credit Party shall deliver any document
or instrument necessary for Agent, as may be reasonably requested from time to
time, to obtain records from any service bureau or other Person that maintains
records for such Credit Party, and shall maintain duplicate records or
supporting documentation on media, including computer tapes and discs owned by
such Credit Party.  Agent will give
Lenders at least five (5) days’ prior written notice of regularly
scheduled audits.  Representatives of
other Lenders may accompany Agent’s representatives on regularly scheduled
audits at no charge to Borrowers.

 

18

 

1.15                           Taxes.

 

(a)                                  All payments by each Credit Party
hereunder or under the Notes or under any other Loan Document will be made
without setoff, counterclaim or defense. 
In addition, any and all payments by each Credit Party hereunder
(including any payments made pursuant to Section 12) or under the
Notes or under any other Loan Document shall be made, in accordance with this Section 1.15,
free and clear of and without deduction for any and all present or future
Taxes.  If any Credit Party shall be
required by law to deduct any Taxes from or in respect of any sum payable
hereunder (including any sum payable pursuant to Section 12) or
under the Notes, (i) the sum payable shall be increased as much as shall
be necessary so that after making all required withholdings and deductions
(including withholdings and deductions applicable to additional sums payable
under this Section 1.15) Agent or Lenders, as applicable, receive
an amount equal to the sum they would have received had no such withholdings
and deductions been made, (ii) such Borrower shall make such withholdings
and deductions, and (iii) such Borrower shall pay the full amount deducted
to the relevant Governmental Authority in accordance with applicable law.  Within 30 days after the date of any such
payment of Taxes, Borrower Representative shall furnish to Agent the original
or a certified copy of a receipt evidencing payment thereof.

 

(b)                                 In addition, each Credit Party agrees to
pay any present or future stamp, recording or documentary taxes or any other
excise or property taxes, charges or similar levies that arise from any payment
made under this Agreement or under any other Loan Document or from the
execution, delivery or registration of, or otherwise with respect to, this
Agreement, the other Loan Documents and any other agreements and instruments
contemplated hereby or thereby (“Other Taxes”).  Each Lender agrees that, as promptly as
reasonably practicable after it becomes aware of any circumstances referred to
above which would result in additional payments under this Section 1.15,
it shall notify Borrowers thereof.

 

(c)                                  Each Credit Party that is a signatory hereto
shall jointly and severally indemnify and, within ten (10) days of demand
therefor, pay Agent and each Lender for the full amount of Taxes and Other
Taxes (including any Taxes imposed by any jurisdiction on amounts payable under
this Section 1.15) paid by Agent or such Lender on or with respect
to any payment by or on account of any obligation of the Credit Parties
hereunder, as appropriate, and any penalties, interest and expenses arising
therefrom or with respect thereto, whether or not such Taxes were correctly or
legally asserted.

 

(d)                                 Each Lender, and the successors and
assignees of such Lender, organized under the laws of a jurisdiction outside of
the United States (“Foreign Lender”) to whom payments to be made under
this Agreement or under the Notes may be exempt from, or eligible for a reduced
rate of, United States withholding tax (as applicable) under the law of the
jurisdiction in which the relevant Borrower is located or under any tax treaty
to which such jurisdiction is a party shall, at the time or times prescribed by
applicable law, provide to Borrower Representative (with a copy to Agent) a
properly completed and executed IRS Form W-8ECI or Form W-8BEN or
other applicable form, certificate or document prescribed by the IRS or the
United States.

 

(e)                                  If any of Agent or any Lender, as
applicable, determines, in its sole discretion, that it has received a refund
of any Taxes as to which it has been indemnified by the Borrower or with
respect to which the Borrower has paid additional amounts pursuant to this 

 

19

 

Section 1.15, it shall pay over such refund to the
Borrower (but only to the extent of indemnity payments made, or additional
amounts paid, by the Borrower under this Section 1.15 with respect to the
Taxes giving rise to such refund), net all out-of-pocket expenses of such Agent
or Lender and without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund).

 

1.16                           Capital Adequacy; Increased Costs;
Illegality.

 

(a)                                  If any Lender shall have determined that
any law, treaty, governmental (or quasi-governmental) rule, regulation,
guideline or order regarding capital adequacy, reserve requirements or similar
requirements or compliance by any Lender with any request or directive
regarding capital adequacy, reserve requirements or similar requirements
(whether or not having the force of law), in each case, adopted after the
Closing Date, from any central bank or other Governmental Authority increases
or would have the effect of increasing the amount of capital, reserves or other
funds required to be maintained by such Lender and thereby reducing the rate of
return on such Lender’s capital as a consequence of its obligations hereunder,
then Borrowers, shall from time to time upon demand by such Lender (with a copy
of such demand to Agent) pay to Agent for the account of such Lender,
additional amounts sufficient to compensate such Lender for such rate of return
reduction.  A certificate as to the amount
of that reduction and showing the basis of the computation thereof submitted by
such Lender to Borrower Representative and to Agent shall, absent manifest
error, be final, conclusive and binding for all purposes.

 

(b)                                 If, due to either (i) the introduction
of or any change in any law or regulation (or any change in the interpretation
thereof) or (ii) the compliance with any guideline or request from any
central bank or other Governmental Authority (whether or not having the force
of law), in each case adopted after the Closing Date, there shall be any
increase in the cost to any Lender of agreeing to make or making, funding or
maintaining any Loan, then Borrowers shall from time to time, upon demand by
such Lender (with a copy of such demand to Agent), pay to Agent for the account
of such Lender additional amounts sufficient to compensate such Lender for such
increased cost.  A certificate as to the
amount of such increased cost, submitted to Borrower Representative and to
Agent by such Lender, shall be conclusive and binding on Borrowers for all
purposes, absent manifest error.  Each
Lender agrees that, as promptly as practicable after it becomes aware of any
circumstances referred to above which would result in any such increased cost,
the affected Lender shall, to the extent not inconsistent with such Lender’s
internal policies of general application, use reasonable commercial efforts to
minimize costs and expenses incurred by it and payable to it by Borrowers
pursuant to this Section 1.16(b).

 

(c)                                  Notwithstanding anything to the contrary
contained herein, if the introduction of or any change in any law or regulation
(or any change in the interpretation thereof) shall make it unlawful, or any
central bank or other Governmental Authority shall assert that it is unlawful,
for any Lender to agree to make or to make or to continue to fund or maintain
any LIBOR Loan, then, unless that Lender is able to make or to continue to fund
or to maintain such LIBOR Loan at another branch or office of that Lender
without, in that Lender’s opinion, adversely affecting it or its Loans or the
income obtained therefrom, on notice thereof and demand therefor by such Lender
to Borrower Representative through Agent (i) the obligation of such Lender
to agree to make or to make or to continue to fund or maintain LIBOR Loans
shall 

 

20

 

terminate and (ii) each
Borrower, in the case of LIBOR Loans that are Loans shall forthwith prepay in
full all outstanding LIBOR Loans owing by such Borrowers to such Lender,
together with interest accrued thereon, unless Borrower Representative on
behalf of such Borrowers, within five (5) Business Days after the delivery
of such notice and demand, converts all LIBOR Loans into Index Rate Loans.

 

(d)                                 Within 15 days after receipt by Borrower
Representative of written notice and demand from any Lender (an “Affected
Lender”) for payment of additional amounts or increased costs as provided
in Sections 1.15(a), 1.15(c), 1.16(a) or 1.16(b), Borrower
Representative may, at its option, notify Agent and such Affected Lender of its
intention to replace the Affected Lender. 
So long as no Default or Event of Default has occurred and is
continuing, Borrower Representative, with the consent of Agent, may obtain, at
Borrowers’ expense, a replacement Lender (“Replacement Lender”) for the
Affected Lender, which Replacement Lender must be reasonably satisfactory to
Agent.  If Borrowers obtain a Replacement
Lender within 90 days following notice of their intention to do so, the
Affected Lender must sell and assign its Loans and Commitments to such
Replacement Lender for an amount equal to the principal balance of all Loans
held by the Affected Lender and all accrued interest and Fees with respect
thereto through the date of such sale; provided, that Borrowers shall
have reimbursed such Affected Lender for the additional amounts or increased
costs that it is entitled to receive under this Agreement through the date of
such sale and assignment.  Notwithstanding
the foregoing, Borrowers shall not have the right to obtain a Replacement
Lender if the Affected Lender rescinds its demand for increased costs or
additional amounts within 15 days following its receipt of Borrowers’ notice of
intention to replace such Affected Lender. 
Furthermore, if Borrowers give a notice of intention to replace and do
not so replace such Affected Lender within 90 days thereafter, Borrowers’
rights under this Section 1.16(d) shall terminate and
Borrowers shall promptly pay all increased costs or additional amounts demanded
by such Affected Lender pursuant to Sections 1.15(a), 1.16(a) and
1.16(b).  Notwithstanding the
foregoing, with respect to a Lender that is an Impacted Lender, Borrowers or
Agent (in consultation with Borrowers) may (but shall have no obligation to)
obtain a Replacement Lender and execute an Assignment Agreement on behalf of
such Impacted Lender at any time and without prior notice to such Impacted
Lender.

 

1.17                           Single Loan. 
All Loans to Borrowers and all of the other Obligations of Borrowers
arising under this Agreement and the other Loan Documents shall constitute one
general obligation of Borrowers secured, until the Termination Date, by all of
the Collateral.

 

2.                                       CONDITIONS PRECEDENT

 

2.1                                 Conditions to the Initial Loans. 
No Lender shall be obligated to make any Loan or incur any Letter of
Credit Obligations on the Closing Date, or to take, fulfill, or perform any
other action hereunder, until the following conditions have been satisfied or
provided for in a manner satisfactory to Agent, or waived in writing by Agent
and Lenders:

 

(a)                                  Credit Agreement; Loan Documents. 
This Agreement or counterparts hereof shall have been duly executed by,
and delivered to, Borrowers, each other Credit Party, Agent and Lenders; and
Agent shall have received such documents, instruments, agreements and legal
opinions as Agent shall reasonably request in connection with the transactions 

 

21

 

contemplated by this
Agreement and the other Loan Documents, including all those listed in the
Closing Checklist attached hereto as Annex D, each in form and substance
reasonably satisfactory to Agent.

 

(b)                                 Intentionally Omitted.

 

(c)                                  Approvals.  Agent shall
have received (i) satisfactory evidence that the Credit Parties have
obtained all required consents and approvals of all Persons including all
requisite Governmental Authorities, to the execution, delivery and performance
of this Agreement and the other Loan Documents and the consummation of the
Related Transactions or (ii) an officer’s certificate in form and
substance reasonably satisfactory to Agent affirming that no such consents or
approvals are required.

 

(d)                                 Minimum Credit Rating. 
Agent shall have received satisfactory evidence that the Revolving Loans
and Term Loan B are rated BA1/BB or better by Moody’s and S&P,
respectively.

 

(e)                                  Payment of Fees. Borrowers shall have paid the Fees
required to be paid on the Closing Date in the respective amounts specified in Section 1.9
(including the Fees specified in the GE Capital Fee Letter), and shall have
reimbursed Agent for all fees, costs and expenses of closing presented as of
the Closing Date in accordance with the GE Capital Fee Letter and this
Agreement.

 

(f)                                    Intentionally Omitted.

 

(g)                                 Intentionally Omitted.

 

(h)                                 Maximum Leverage Ratio. 
Agent shall have received satisfactory evidence that the Leverage Ratio
as of September 30, 2009, after giving pro forma effect to the Related
Transactions, is not greater than 4.00 to 1.00.

 

(i)                                     Maximum Credit Facility Leverage Ratio. 
Agent shall have received satisfactory evidence that the Credit Facility
Leverage Ratio as of September 30, 2009, after giving pro forma effect to
the Related Transactions, is not greater than 1.85 to 1.00.

 

2.2                                 Further Conditions to Each Loan. 
Except as otherwise expressly provided herein, no Lender shall be
obligated to fund any Advance or incur any Letter of Credit Obligation, if, as
of the date thereof:

 

(a)                                  any representation or warranty by any
Credit Party contained herein or in any other Loan Document is untrue or
incorrect (with respect to any representation or warranty that is not otherwise
qualified as to materiality, in any material respect) as of such date, except
to the extent that such representation or warranty expressly relates to an earlier
date and except for changes therein expressly permitted or expressly
contemplated by this Agreement;

 

(b)                                 any event or circumstance having a
Material Adverse Effect has occurred since the date hereof;

 

22

 

(c)           any Default or Event of Default has
occurred and is continuing or would result after giving effect to any Advance
(or the incurrence of any Letter of Credit Obligation); or

 

(d)           after giving effect to any Advance (or
the incurrence of any Letter of Credit Obligation), the outstanding principal
amount of the Revolving Loan would exceed the Maximum Amount less the then
outstanding principal amount of the Swing Line Loan.

 

The request and acceptance by any Borrower of the proceeds of any
Advance or the incurrence of any Letter of Credit Obligation shall be deemed to
constitute, as of the date thereof, (i) a representation and warranty by
Borrowers that the conditions in this Section 2.2  have been satisfied and (ii) a
reaffirmation by Borrowers of the provisions set forth in Section 12
and of the granting and continuance of Agent’s Liens pursuant to the Collateral
Documents.  The extension of credit by
any Lender after the occurrence of any Default or Event of Default shall not
result in a waiver of such Default or Event of Default.

 

3.             REPRESENTATIONS AND WARRANTIES

 

To
induce Lenders to make the Loans and to incur Letter of Credit Obligations, the
Credit Parties executing this Agreement, jointly and severally, make the
following representations and warranties to Agent and each Lender with respect
to all Credit Parties, each and all of which shall survive the execution and
delivery of this Agreement.

 

3.1           Corporate Existence; Compliance with Law. 
Each Credit Party (a) is a corporation, limited liability company
or limited partnership duly organized, validly existing and in good standing
under the laws of its respective jurisdiction of incorporation or organization
set forth in Disclosure Schedule (3.1); (b) is duly qualified to
conduct business and is in good standing in each other jurisdiction where its
ownership or lease of property or the conduct of its business requires such
qualification, except where the failure to be so qualified would not result in
exposure to losses, damages or liabilities which could, in the aggregate,
reasonably be expected to result in a Material Adverse Effect; (c) has the
requisite power and authority and the legal right to own and operate in all
material respects its properties, to lease the property it operates under lease
and to conduct its business in all material respects as now, heretofore and
proposed to be conducted and has the requisite power and authority and the
legal right to pledge, mortgage, hypothecate or otherwise encumber the
Collateral; (d) subject to specific representations regarding
Environmental Laws, has all material licenses, permits, consents or approvals
from or by, and has made all material filings with, and has given all material
notices to, all Governmental Authorities having jurisdiction, to the extent
required for such ownership, operation and conduct; (e) is in compliance
with its charter and bylaws or partnership or operating agreement, as
applicable; and (f) subject to specific representations set forth herein
regarding ERISA, Environmental Laws, tax and other laws, is in compliance with
all applicable provisions of law, except where the failure to comply,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.

 

3.2           Executive Offices, Collateral Locations,
FEIN.  As of the Closing Date, the current location
of each Credit Party’s chief executive office, principal place of business and
the warehouses and premises at which any Collateral is located are set forth in
Disclosure Schedule (3.2), and, except as set forth on such schedule,
none of such locations has changed within the 12 

 

23

 

months preceding the
Closing Date.  In addition, Disclosure
Schedule (3.2) lists the federal employer identification number and
organizational identification number, if any, of each Credit Party.

 

3.3           Corporate Power, Authorization,
Enforceable Obligations.  The execution, delivery and
performance by each Credit Party of the Loan Documents to which it is a party
and the creation of all Liens provided for therein: (a) are within such
Person’s power; (b) have been duly authorized by all necessary corporate,
limited liability company or limited partnership action; (c) do not
contravene any provision of such Person’s charter, bylaws or partnership or
operating agreement as applicable; (d) do not violate any law or
regulation, or any order or decree of any court or Governmental Authority; (e) except
as set forth on Disclosure Schedule (3.3(e)), do not conflict with or
result in the breach or termination of, constitute a default under or
accelerate or permit the acceleration of any performance required by, any
indenture, mortgage, deed of trust, lease, agreement or other instrument to
which such Person is a party or by which such Person or any of its property is
bound; (f) do not result in the creation or imposition of any Lien upon
any of the property of such Person other than those in favor of Agent pursuant
to the Loan Documents; and (g) do not require the consent or approval of
any Governmental Authority or any other Person, except those which will have
been duly obtained, made or complied with prior to the Closing Date pursuant to
Section 2.1(c).  Each of the
Loan Documents shall be duly executed and delivered by each Credit Party that
is a party thereto and each such Loan Document shall constitute a legal, valid
and binding obligation of such Credit Party enforceable against it in
accordance with its terms.

 

3.4           Financial Statements and Projections. 
Except for the Projections, all Financial Statements concerning Holdings
and its Subsidiaries that are referred to below have been prepared in
accordance with GAAP consistently applied throughout the periods covered
(except as disclosed therein and except, with respect to unaudited Financial
Statements, for the absence of footnotes and normal year-end audit adjustments)
and present fairly in all material respects the financial position of the
Persons covered thereby as at the dates thereof and the results of their
operations and cash flows for the periods then ended.

 

(a)           Financial Statements. 
The following Financial Statements attached hereto as Disclosure
Schedule (3.4(a)) have been delivered on the date hereof:

 

(i)            The audited consolidated balance sheets
at December 31, 2007 and 2008 and the related statements of income and
cash flows of Holdings and its Subsidiaries for the Fiscal Years then ended,
certified by Pricewaterhouse Coopers LLP.

 

(ii)           The unaudited balance sheet(s) at September 30,
2009 and the related statement(s) of income and cash flows of Holdings and
its Subsidiaries for the Fiscal Month then ended.

 

(b)           Pro Forma.  The Pro Forma
delivered on the date hereof and attached hereto as Disclosure Schedule
(3.4(b)) was prepared by Holdings giving pro forma effect to the Related
Transactions, was based on the unaudited consolidated balance sheets of
Holdings and its Subsidiaries dated September 30, 2009, and was prepared
in accordance with GAAP, with only such adjustments thereto as would be
required in accordance with GAAP.

 

24

 

(c)           Projections. 
The Projections delivered on the date hereof and attached hereto as Disclosure
Schedule (3.4(c)) have been prepared by Holdings in light of the past
operations of their businesses and reflect projections for the period beginning
on October 1, 2009 and continuing through December 31, 2012 on a
quarter-by-quarter basis for periods in calendar years 2009 and 2010 and on a
year-by-year basis thereafter.  The
Projections are based upon estimates and assumptions stated therein, all of
which Borrowers believe to be reasonable and fair in light of current
conditions and current facts known to Borrowers and, as of the Closing Date,
reflect Borrowers’ good faith and reasonable estimates of the future financial
performance of Borrowers and of the other information projected therein for the
period set forth therein.

 

3.5           Material Adverse Effect. 
Between December 31, 2008 and the Closing Date: (a) no Credit
Party has incurred any obligations, contingent or noncontingent liabilities,
liabilities for Charges, long-term leases or unusual forward or long-term
commitments that are not reflected in the Pro Forma and that, alone or in the
aggregate, could reasonably be expected to have a Material Adverse Effect, (b) no
contract, lease or other agreement or instrument has been entered into by any
Credit Party or has become binding upon any Credit Party’s assets and no law or
regulation applicable to any Credit Party has been adopted that has had or
could reasonably be expected to have a Material Adverse Effect, and (c) no
Credit Party is in default and to the best of Borrowers’ knowledge no third
party is in default under any material contract, lease or other agreement or
instrument, that alone or in the aggregate could reasonably be expected to have
a Material Adverse Effect.  Between December 31,
2008 and the Closing Date no event has occurred, that alone or together with
other events, could reasonably be expected to have a Material Adverse Effect.

 

3.6           Ownership of Property; Liens. 
As of the Closing Date, the real estate (“Real Estate”) listed in
Disclosure Schedule (3.6) constitutes all of the real property owned,
leased, subleased, or used by any Credit Party. 
Except as set forth in the title insurance policies accepted by Agent,
each Credit Party owns good and marketable fee simple title to all of its
material owned Real Estate (including, without limitation, the Mortgaged
Properties), and valid and marketable leasehold interests in all of its
material leased Real Estate, all as described on Disclosure Schedule (3.6),
and copies of all such leases or a summary of terms thereof reasonably
satisfactory to Agent have been delivered to Agent.  Disclosure Schedule (3.6) further
describes any Real Estate with respect to which any Credit Party is a lessor,
sublessor or assignor as of the Closing Date. 
Except as set forth in the title insurance policies accepted by Agent
with respect to each of the Mortgages and immaterial defects in title, each
Credit Party also has good and marketable title to, or valid leasehold
interests in, all of its material personal property and assets.  As of the Closing Date, none of the
properties and assets of any Credit Party are subject to any Liens other than
Permitted Encumbrances, and there are no facts, circumstances or conditions
known to any Credit Party that may result in any Liens (including Liens arising
under Environmental Laws) other than Permitted Encumbrances.  Except as set forth in Disclosure Schedule
(3.6) or in the title insurance policies accepted by Agent with respect to
each of the Mortgages, each Credit Party has received all deeds, assignments,
waivers, consents, nondisturbance and attornment or similar agreements, bills
of sale and other documents, and has duly effected all recordings, filings and
other actions necessary to establish, protect and perfect such Credit Party’s
right, title and interest in and to all such Real Estate and other properties
and assets.  Disclosure Schedule (3.6)
also describes any purchase options, rights of first refusal or other similar
contractual rights pertaining to any Real Estate.  As of the Closing Date, no portion 

 

25

 

of any Credit Party’s
Real Estate has suffered any material damage by fire or other casualty loss
that has not heretofore been repaired and restored in all material respects to
its original condition or otherwise remedied. 
As of the Closing Date, all material permits required to have been
issued or appropriate to enable the Real Estate to be lawfully occupied and
used for all of the purposes for which it is currently occupied and used have
been lawfully issued and are in full force and effect.

 

3.7           Labor Matters. 
As of the Closing Date (a) no strikes or other material labor
disputes against any Credit Party are pending or, to any Credit Party’s
knowledge, threatened; (b) hours worked by and payment made to employees
of each Credit Party comply in all material respects with the Fair Labor
Standards Act and each other federal, state, provincial, local or foreign law
applicable to such matters; (c) all payments due from any Credit Party for
employee health and welfare insurance have been paid or accrued as a liability
on the books of such Credit Party; (d) except as set forth in Disclosure
Schedule (3.7), no Credit Party is a party to or bound by any collective
bargaining agreement, management agreement, consulting agreement, employment
agreement, bonus, restricted stock, stock option, or stock appreciation plan or
agreement or any similar plan, agreement or arrangement (and true and complete
copies of any agreements (or, with respect to employment agreements for
employees who are not executive officers, copies of the templates for such
employment agreements) described on Disclosure Schedule (3.7) have been
delivered to Agent); (e) there is no organizing activity involving any
Credit Party pending or, to any Credit Party’s knowledge, threatened by any
labor union or group of employees; (f) there are no representation
proceedings pending or, to any Credit Party’s knowledge, threatened with the
National Labor Relations Board or any other applicable labor relations board,
and no labor organization or group of employees of any Credit Party has made a
pending demand for recognition; and (g) except as set forth in Disclosure
Schedule (3.7), there are no material complaints or charges against any
Credit Party pending or, to the knowledge of any Credit Party, threatened to be
filed with any Governmental Authority or arbitrator based on, arising out of,
in connection with, or otherwise relating to the employment or termination of
employment by any Credit Party of any individual.

 

3.8           Ventures, Subsidiaries and Affiliates;
Outstanding Stock and Indebtedness.  Except as set
forth in Disclosure Schedule (3.8), as of the Closing Date, no Credit
Party has any Subsidiaries, is engaged in any joint venture or partnership with
any other Person, or is an Affiliate of any other Person.  All of the issued and outstanding Stock of
each Credit Party is owned by each of the Stockholders and in the amounts set
forth in Disclosure Schedule (3.8). 
Except as set forth in Disclosure Schedule (3.8), there are no
outstanding rights to purchase, options, warrants or similar rights or
agreements pursuant to which any Credit Party may be required to issue, sell,
repurchase or redeem any of its Stock or other equity securities or any Stock
or other equity securities of its Subsidiaries. 
All outstanding Indebtedness and Guaranteed Indebtedness of each Credit
Party as of the Closing Date is permitted by Section 6.3.  None of the Credit Parties other than
Borrowers has any assets (except Stock of their Subsidiaries) or, except as set
forth on Disclosure Schedule (6.3), any Indebtedness or Guaranteed
Indebtedness (except the Obligations).

 

3.9           Government Regulation. 
No Credit Party is an “investment company” or an “affiliated person” of,
or “promoter” or “principal underwriter” for, an “investment company,” as such
terms are defined in the Investment Company Act of 1940.  No Credit Party is subject to 

 

26

 

regulation under the
Federal Power Act, or any other United States or state statute or law that
restricts or limits its ability to incur Indebtedness or to perform its obligations
hereunder. The making of the Loans by Lenders to Borrowers, the incurrence of
the Letter of Credit Obligations on behalf of Borrowers, the application of the
proceeds thereof and repayment thereof and the consummation of the Related
Transactions will not violate any provision of any such statute or any rule,
regulation or order issued by the Securities and Exchange Commission or any
other securities regulation authority or securities exchange.

 

3.10         Margin Regulations. 
No Credit Party is engaged, nor will it engage, principally or as one of
its important activities, in the business of extending credit for the purpose
of “purchasing” or “carrying” any “margin stock” as such terms are defined in
Regulation U of the Federal Reserve Board as now and from time to time
hereafter in effect (such securities being referred to herein as “Margin
Stock”).  No Credit Party owns any
Margin Stock, and none of the proceeds of the Loans or other extensions of
credit under this Agreement will be used, directly or indirectly, for the
purpose of purchasing or carrying any Margin Stock, for the purpose of reducing
or retiring any Indebtedness that was originally incurred to purchase or carry
any Margin Stock or for any other purpose that might cause any of the Loans or other
extensions of credit under this Agreement to be considered a “purpose credit”
within the meaning of Regulations T, U or X of the Federal Reserve Board.  No Credit Party will take or permit to be
taken any action that might cause any Loan Document to violate any regulation
of the Federal Reserve Board.

 

3.11         Taxes.  All tax
returns, reports and statements, including information returns, required by any
Governmental Authority to be filed by any Credit Party have been filed with the
appropriate Governmental Authority and all Taxes have been paid prior to the
date on which any fine, penalty, interest or late charge may be added thereto
for nonpayment thereof (or any such fine, penalty, interest, late charge or
loss has been paid), excluding Taxes or other amounts being contested in
accordance with Section 5.2(b). 
Proper and accurate amounts have been withheld by each Credit Party from
its respective employees for all periods in full and complete compliance with
all applicable United States federal, state, local laws and all applicable
foreign laws and such withholdings have been timely paid to the respective
Governmental Authorities.  Disclosure
Schedule (3.11) sets forth as of the Closing Date (i) those taxable
years (A) for which any Credit Party has received notice, in writing, that
such Credit Party’s tax returns were to be audited, and (B) for which tax
returns are, as of the Closing Date, being audited by the IRS  or any other applicable Governmental
Authority, (ii) any assessments or threatened assessments in connection
with such audit, and (iii) those taxable years the tax returns for which
are otherwise currently outstanding. 
Except as described in Disclosure Schedule (3.11), no Credit
Party has executed or filed with the IRS or any other domestic or foreign
Governmental Authority any agreement or other document extending, or having the
effect of extending, the period for assessment or collection of any Taxes.  Except as set forth on Disclosure Schedule
(3.11), none of the Credit Parties or any of their respective predecessors
are liable for any Taxes: (a) under any agreement (including any tax
sharing agreements) or (b) to each Credit Party’s knowledge, as a
transferee.  As of the Closing Date, no
Credit Party has agreed or been requested to make any adjustment under IRC Section 481(a),
by reason of a change in accounting method or otherwise, which would have a
Material Adverse Effect.

 

27

 

3.12         ERISA and Benefit Plans.

 

(a)           Except with respect to Multiemployer
Plans, each Qualified Plan has been determined by the IRS to qualify under Section 401
of the IRC, the trusts created thereunder have been determined to be exempt
from tax under the provisions of Section 501 of the IRC, and nothing has
occurred that would cause the loss of such qualification or tax-exempt status,
except for qualification failures which, in the aggregate, could not reasonably
be expected to result in a Material Adverse Effect.  Each Plan is in compliance with the
applicable provisions of ERISA and the IRC, including the timely filing of all
reports required under the IRC or ERISA, including the statement required by 29
CFR Section 2520.104-23, except for such failures which, in the aggregate,
could not reasonably be likely to result in a Material Adverse Effect.  Neither any Credit Party nor ERISA Affiliate
has failed to make any contribution or pay any amount due as required by either
Section 412 of the IRC or Section 302 of ERISA or the terms of any
such Plan, except for contributions and amounts due which, in the aggregate, do
not exceed $500,000.  As of the Closing
Date, no Lien has been imposed against any Credit Party or ERISA Affiliate
under Section 412 of the IRC or Section 302 or 4068 of ERISA.  Neither any Credit Party nor ERISA Affiliate
has engaged in a “prohibited transaction,” as defined in Section 406 of
ERISA and Section 4975 of the IRC, in connection with any Plan, that would
subject any Credit Party to a material tax on prohibited transactions imposed
by Section 502(i) of ERISA or Section 4975 of the IRC, except for
prohibited transactions or excise taxes which, in the aggregate, could not
reasonably be likely to result in a Material Adverse Effect.

 

(b)           Except as set forth in Disclosure
Schedule (3.12) or as could not reasonably be likely to result in a
Material Adverse Effect: (i) no Title IV Plan has any Unfunded Pension
Liability; (ii) no ERISA Event or event described in Section 4062(e) of
ERISA with respect to any Title IV Plan has occurred or is reasonably expected
to occur; (iii) there are no pending, or to the knowledge of any Credit
Party, threatened claims (other than claims for benefits in the normal course),
sanctions, actions or lawsuits, asserted or instituted against any Plan or any
Person as fiduciary or sponsor of any Plan; (iv) no Credit Party or ERISA
Affiliate has incurred or reasonably expects to incur any liability as a result
of a complete or partial withdrawal from a Multiemployer Plan; (v) within the
last five years no Title IV Plan of any Credit Party or ERISA Affiliate has
been terminated, whether or not in a “standard termination” as that term is
used in Section 4041(b)(1) of ERISA, nor has any Title IV Plan of any
Credit Party or any ERISA Affiliate (determined at any time within the last
five years) with Unfunded Pension Liabilities been transferred outside of the “controlled
group” (within the meaning of Section 4001(a)(14) of ERISA) of any Credit
Party or ERISA Affiliate (determined at such time); (vi) except in the
case of any ESOP, Stock of all Credit Parties and their ERISA Affiliates makes
up, in the aggregate, no more than 10% of fair market value of the assets of
any Plan measured on the basis of fair market value as of the latest valuation
date of any Plan; and (vii) no liability under any Title IV Plan has been
satisfied with the purchase of a contract from an insurance company that is not
rated AAA by the Standard & Poor’s Corporation or an equivalent rating
by another nationally recognized rating agency.

 

(c)           Intentionally Omitted.

 

3.13         No Litigation. 
No action, claim, lawsuit, demand, investigation or proceeding is now
pending or, to the knowledge of any Credit Party, threatened against any Credit
Party, before any Governmental Authority or before any arbitrator or panel of
arbitrators (collectively, “Litigation”), (a) that challenges any
Credit Party’s right or power to enter into or perform any of 

 

28

 

its obligations under the
Loan Documents to which it is a party, or the validity or enforceability of any
Loan Document or any action taken thereunder, or (b) that has a reasonable
risk of being determined adversely to any Credit Party and that, if so
determined, could reasonably be expected to have a Material Adverse
Effect.  Except as set forth on Disclosure
Schedule (3.13), as of the Closing Date there is no Litigation pending or,
to any Credit Party’s knowledge, threatened, that could reasonably be likely to
result in damages in excess of $2,000,000 (net of insurance coverages for such
damages) or injunctive relief against, or alleges criminal misconduct of, any
Credit Party.

 

3.14         Brokers.  No broker or
finder brought about the obtaining, making or closing of the Loans or the
Related Transactions, and no Credit Party or Affiliate thereof has any
obligation to any Person in respect of any finder’s or brokerage fees in
connection therewith.

 

3.15         Intellectual Property. 
As of the Closing Date, each Credit Party owns or has rights to use all
Intellectual Property necessary to continue to conduct its business as now or
heretofore conducted by it or proposed to be conducted by it, and each Patent,
Trademark, Design, Copyright and License is listed, together with application
or registration numbers, as applicable, in Disclosure Schedule (3.15).  Each Credit Party conducts its business and
affairs without infringement of or interference with any Intellectual Property
of any other Person in any material respect. 
Except as set forth in Disclosure Schedule (3.15), no Credit
Party is aware of any material infringement claim by any other Person with
respect to any Intellectual Property.

 

3.16         Full Disclosure. 
No information contained in this Agreement, any of the other Loan
Documents, any Projections, Financial Statements or Collateral Reports or other
written reports from time to time delivered hereunder or any written statement
furnished by or on behalf of any Credit Party to Agent or any Lender pursuant
to the terms of this Agreement contains or will contain any untrue statement of
a material fact or omits or will omit to state a material fact necessary to
make the statements contained herein or therein not misleading in light of the
circumstances under which they were made. 
The Liens granted to Agent pursuant to the Collateral Documents will at all
times be fully perfected first priority Liens in and to the Collateral
described therein, subject, as to priority, only to Permitted Encumbrances.

 

3.17         Environmental Matters.

 

(a)           Except as set forth in Disclosure
Schedule (3.17), as of the Closing Date: (i) the Real Estate is free
of contamination from any Hazardous Material except for such contamination that
would not adversely impact the value or marketability of such Real Estate and
except for such contamination that would not result in Environmental
Liabilities that could reasonably be expected to exceed $2,500,000; (ii) no
Credit Party has caused to occur any Release of Hazardous Materials on, at, in,
under, above, to, from or about any of its Real Estate, except for such Release
that would not result in Environmental Liabilities that could reasonably be
expected to exceed $2,500,000; (iii) the Credit Parties are and have been
in compliance with all Environmental Laws, except for such noncompliance that
would not result in Environmental Liabilities which could reasonably be
expected to exceed $2,500,000; (iv) the Credit Parties (A) have
obtained, (B) possess as valid, uncontested and in good standing, and (C) are
in compliance with all Environmental Permits required by Environmental Laws for
the operations of their respective businesses as presently conducted or as
proposed to be conducted, except where the 

 

29

 

failure to so obtain,
possess or comply with such Environmental Permits would not result in
Environmental Liabilities that could reasonably be expected to exceed
$2,500,000; (v) to the knowledge of any Credit Party, no Credit Party is
involved in operations nor are there any facts, circumstances or conditions,
including any Releases of Hazardous Materials, and no Credit Party has
permitted any current or former tenant or occupant of the Real Estate to engage
in any such operations, any of which are likely to result in any Environmental
Liabilities of such Credit Party which could reasonably be expected to exceed
$2,500,000; (vi) there is no Litigation arising under or related to any
Environmental Laws or Environmental Permits or otherwise relating to the
release of or exposure to Hazardous Material that seeks damages, penalties,
fines, costs or expenses in excess of $2,500,000 or injunctive relief against,
or that alleges criminal misconduct by, any Credit Party; (vii) no written
notice has been received by any Credit Party identifying it as a “potentially
responsible party” or requesting information under CERCLA or analogous state
statutes or Canadian federal or provincial statues; and (viii) to the
Credit Parties’ knowledge, the Credit Parties have provided to Agent copies of
all existing Phase I or Phase II environmental reports or their equivalent,
corrective action work plans or reports, on the most recent environmental
compliance audits, in each case relating to and in the possession of any Credit
Party.

 

(b)           Each Credit Party hereby acknowledges and
agrees that none of Agent, any other secured party under the Loan Documents or
any of their respective officers, directors, employees, attorneys, agents and
representatives (i) is now, or has ever been, in control of any of the
Real Estate or any Credit Party’s affairs, and (ii) has the capacity or the
authority through the provisions of the Loan Documents or otherwise to direct
or influence any (A) Credit Party’s conduct with respect to the ownership,
operation or management of any of its Real Estate, (B) undertaking, work
or task performed by any employee, agent or contractor of any Credit Party or
the manner in which such undertaking, work or task may be carried out or
performed, or (C) compliance with Environmental Laws or Environmental
Permits.

 

3.18         Insurance.  Disclosure
Schedule (3.18) lists all insurance policies of any nature maintained, as
of the Closing Date, for current occurrences by each Credit Party, as well as a
summary of the terms of each such policy.

 

3.19         Deposit and Disbursement Accounts.  Disclosure
Schedule (3.19) lists all banks and other financial institutions at which
any Credit Party maintains deposit or other accounts as of the Closing Date,
including any Disbursement Accounts, and such Schedule correctly identifies the
name, address and telephone number of each depository, the name in which the
account is held, a description of the purpose of the account, and the complete
account number therefor.

 

3.20         Government Contracts. 
Except as set forth in Disclosure Schedule (3.20), as of the
Closing Date, no Credit Party is a party to any contract or agreement in excess
of $250,000 with any Governmental Authority and no Credit Party’s Accounts are
subject to the Federal Assignment of Claims Act (31 U.S.C. Section 3727)
or any similar United States state  or
local law.

 

3.21         Customer and Trade Relations. 
As of the Closing Date, except as disclosed on Disclosure Schedule
(3.21), there exists no actual or, to the actual knowledge of any Credit 

 

30

 

Party, threatened
termination or cancellation of, or any material adverse modification or change
in the business relationship of any Credit Party with any customer or group of
customers whose purchases during the preceding 12 months caused them to be
ranked among the ten largest customers of such Credit Party or the business
relationship of any Credit Party with any supplier material to its operations.

 

3.22         Agreements and Other Documents. 
As of the Closing Date, each Credit Party has provided to Agent or its
counsel accurate and complete copies (or summaries) of all of the following
agreements or documents to which it is subject and each of which is listed in
Disclosure Schedule (3.22):  (a) supply
agreements and purchase agreements not terminable by such Credit Party within
60 days following written notice issued by such Credit Party and involving
transactions in excess of $5,000,000 per annum; (b) leases of Equipment
having a remaining term of one year or longer and requiring aggregate rental
and other payments in excess of $1,000,000 per annum; (c) licenses and
permits held by the Credit Parties, the absence of which could be reasonably
likely to have a Material Adverse Effect; (d) instruments and documents
evidencing any Indebtedness or Guaranteed Indebtedness of such Credit Party and
any Lien granted by such Credit Party with respect thereto; and (e) instruments
and agreements evidencing the issuance of any equity securities, warrants,
rights or options to purchase equity securities of such Credit Party.

 

3.23         Solvency.  Both before
and after giving effect to (a) the Loans and Letter of Credit Obligations
to be made or incurred on the Closing Date or such other date as Loans and
Letter of Credit Obligations requested hereunder are made or incurred; (b) the
disbursement of the proceeds of such Loans pursuant to the instructions of
Borrower Representative; (c) the Refinancing and the consummation of the
other Related Transactions; and (d) the payment and accrual of all
transaction costs in connection with the foregoing, Holdings and its Subsidiaries
are and will be Solvent.

 

3.24         Status of Holdings. 
Prior to the Closing Date, Holdings will not have engaged in any
business other than holding the Stock of Blount, Inc. and the issuance of
securities to its shareholders or, except as disclosed on Disclosure
Schedule (6.3) incurred any Indebtedness or any other liabilities (except
in connection with its corporate formation, the Related Transactions Documents
and this Agreement).

 

3.25         Subordinated Debt. 
Prior to the Closing Date, Borrowers have delivered to Agent a complete
and correct copy of the New Subordinated Debt Documents (including all
schedules, exhibits, amendments, supplements, modifications, assignments and
all other documents delivered pursuant thereto or in connection therewith).  The subordination provisions of the New
Subordinated Debt Documents are enforceable against the holders of the New
Subordinated Notes by Agent and Lenders. 
All Obligations, including the Letter of Credit Obligations, constitute
senior Indebtedness entitled to the benefits of the subordination provisions
contained in the New Subordinated Debt Documents.  Borrowers acknowledge that Agent and each
Lender are entering into this Agreement and are extending the Commitments in
reliance upon the subordination provisions of the New Subordinated Debt
Documents and this Section 3.25.

 

3.26         Senior Debt. 
Credit Parties hereby represent and warrant to Agent and Lenders, and
hereby declare that, the Obligations constitute “Senior Debt” and “Designated
Senior Debt” 

 

31

 

under the New
Subordinated Debt Documents and that this Agreement constitutes the “Credit
Agreement” and a “Credit Facility” under the New Subordinated Debt Documents.

 

4.             FINANCIAL STATEMENTS AND INFORMATION

 

4.1           Reports and Notices.

 

(a)           Each Credit Party executing this
Agreement hereby agrees that from and after the Closing Date and until the
Termination Date, it shall deliver to Agent or to Agent and Lenders, as
required, the Financial Statements, notices, Projections and other information
at the times, to the Persons and in the manner set forth in Annex E.

 

(b)           Each Credit Party executing this
Agreement hereby agrees that, from and after the Closing Date and until the
Termination Date, it shall deliver to Agent or to Agent and Lenders, as
required, the various Collateral Reports at the times, to the Persons and in
the manner set forth in Annex F.

 

4.2           Communication with Accountants. 
Each Credit Party executing this Agreement authorizes (a) Agent
and, together with Agent, any Lender and (b) so long as an Event of
Default has occurred and is continuing, each Lender, to communicate directly
with such Credit Party’s independent certified or chartered public accountants,
including Pricewaterhouse Coopers LLP, and authorizes and, at Agent’s request,
such Credit Party shall instruct those accountants and advisors to disclose and
make available to Agent and each Lender any and all Financial Statements and
other supporting financial documents, schedules and information relating to any
Credit Party (including copies of any issued management letters) with respect
to the business, financial condition and other affairs of any Credit Party;
provided, however, that Agent will endeavor to notify Borrowers of any
communication with such accountants at any time that no Default or Event of
Default exists.

 

5.             AFFIRMATIVE COVENANTS

 

Each
Credit Party executing this Agreement jointly and severally agrees as to all
Credit Parties that from and after the date hereof and until the Termination
Date:

 

5.1           Maintenance of Existence and Conduct of
Business.  Each Credit Party shall:  do or cause to be done all things necessary
to preserve and keep in full force and effect its corporate existence and its
rights and franchises; continue to conduct its business substantially as now
conducted or as otherwise permitted hereunder; at all times maintain, preserve
and protect all of its assets and properties used or useful in the conduct of
its business, and keep the same in good repair, working order and condition in
all material respects (taking into consideration ordinary wear and tear) and
from time to time make, or cause to be made, all necessary or appropriate
repairs, replacements and improvements thereto consistent with industry
practices; and transact business only in such corporate and trade names as are
set forth in Disclosure Schedule (5.1) or in such other trade names as
shall be disclosed to Agent in writing from time to time.

 

32

 

 

5.2           Payment of Charges.

 

(a)           Subject to Section 5.2(b), each Credit
Party shall pay and discharge or cause to be paid and discharged promptly all
Charges (other than charges in an aggregate amount not to exceed $500,000 the
non-payment of which could not reasonably be expected to result in a Material
Adverse Effect) payable by it, including (i) Charges imposed upon it, its
income and profits, or any of its property (real, personal or mixed) and all
Charges with respect to tax, social security, employer contributions and
unemployment withholding with respect to its employees, (ii) lawful claims
for labor, materials, supplies and services or otherwise, and (iii) all
storage or rental charges payable to warehousemen or bailees, in each case,
before any thereof shall become past due.

 

(b)           Each Credit Party may in good faith contest, by
appropriate proceedings, the validity or amount of any Charges, Taxes or claims
described in Section 5.2(a); provided, that (i) adequate
reserves with respect to such contest are maintained on the books of such
Credit Party, in accordance with GAAP; (ii) no Lien shall be imposed to
secure payment of such Charges (other than payments to warehousemen and/or
bailees) that is superior to any of the Liens securing the Obligations and such
contest is maintained and prosecuted continuously and with diligence and
operates to suspend collection or enforcement of such Charges; (iii) none
of the Collateral becomes subject to forfeiture or loss as a result of such
contest; (iv) such Credit Party shall promptly pay or discharge such
contested Charges, Taxes or claims and all additional charges, interest,
penalties and expenses, if any, and shall deliver to Agent evidence reasonably
acceptable to Agent of such compliance, payment or discharge, if such contest
is terminated or discontinued adversely to such Credit Party or the conditions
set forth in this Section 5.2(b) are no longer met; and (v) Agent
have not advised Borrowers in writing that Agent reasonably believe that
nonpayment or nondischarge thereof could have or result in a Material Adverse
Effect.

 

5.3           Books and Records.  Each Credit
Party shall keep adequate books and records with respect to its business
activities in which proper entries, reflecting all financial transactions, are
made in accordance with GAAP and on a basis consistent with the Financial
Statements attached as Disclosure Schedule (3.4(a)).

 

5.4           Insurance; Damage to or Destruction of Collateral.

 

(a)           The Credit Parties shall, at their sole cost and
expense, maintain the policies of insurance described on Disclosure Schedule
(3.18) as in effect on the date hereof or otherwise in form and
amounts and with insurers reasonably acceptable to Agent.  Such policies of insurance (or the loss
payable and additional insured endorsements delivered to Agent) shall contain
provisions pursuant to which the insurer agrees to provide 30 days prior
written notice to Agent in the event of any non-renewal, cancellation or
amendment of any such insurance policy. 
If any Credit Party at any time or times hereafter shall fail to obtain
or maintain any of the policies of insurance required above, or to pay all
premiums relating thereto, Agent may at any time or times thereafter obtain and
maintain such policies of insurance and pay such premiums and take any other
action with respect thereto that Agent deems advisable.  Agent shall not have any obligation to obtain
insurance for any Credit Party or pay any premiums therefor.  By doing so, Agent shall not be deemed to
have waived any Default or Event of Default arising from any Credit Party’s
failure to maintain such insurance or pay any premiums therefor.  All sums so disbursed, including reasonable
attorneys’ fees, court costs and other charges related thereto, 

 

33

 

shall be payable on
demand by Borrowers to Agent and shall be additional Obligations hereunder
secured by the Collateral.

 

(b)           Agent reserves the right at any time upon any change
in any Credit Party’s risk profile (including any change in the product mix
maintained by any Credit Party or any laws affecting the potential liability of
such Credit Party) to require additional forms and limits of insurance to, in
Agent’s opinion, adequately protect Agent’s and Lenders’ interests in all or any
portion of the Collateral and to ensure that each Credit Party is protected by
insurance in amounts and with coverage customary for its industry.  If reasonably requested by Agent, each Credit
Party shall deliver to Agent from time to time a report of a reputable
insurance broker, reasonably satisfactory to Agent with respect to its
insurance policies.

 

(c)           Each Credit Party shall deliver to Agent, in form and
substance reasonably satisfactory to Agent, endorsements to (i) all “All
Risk” and business interruption insurance naming Agent as loss payee, and (ii) all
general liability and other liability policies naming Agent as additional
insured.  Each Credit Party irrevocably
makes, constitutes and appoints Agent (and all officers, employees or agents
designated by Agent), so long as any Default or Event of Default has occurred
and is continuing or the anticipated insurance proceeds exceed $5,000,000, as
such Credit Party’s true and lawful agent and attorney-in-fact for the purpose
of making, settling and adjusting claims under such “All Risk” policies of
insurance, endorsing the name of such Credit Party on any check or other item
of payment for the proceeds of such “All Risk” policies of insurance and for
making all determinations and decisions with respect to such “All Risk”
policies of insurance.  Agent shall not
have any duty to exercise any rights or powers granted to it pursuant to the
foregoing power-of-attorney.  Borrower
Representative shall promptly notify Agent of any loss, damage, or destruction
to the Collateral in the amount of $2,000,000 or more, whether or not covered
by insurance.  After deducting from such
proceeds the expenses, if any, incurred by Agent in the collection or handling
thereof, Agent may, at its option, apply such proceeds to the reduction of the
Obligations in accordance with Section 1.3(d) and Section 1.11(b) or
permit or require the applicable Credit Party to use such money, or any part
thereof, to replace, repair, restore or rebuild the Collateral in a diligent
and expeditious manner with materials and workmanship of substantially the same
quality as existed before the loss, damage or destruction.  Notwithstanding the foregoing, so long as no
Default or Event of Default has occurred and is continuing, if the casualty
giving rise to such insurance proceeds could not reasonably be expected to have
a Material Adverse Effect and such insurance proceeds do not exceed $10,000,000
in the aggregate or, to the extent that the proceeds from a sale of such assets
would have been deemed Excluded Proceeds had such assets been disposed of prior
to the loss, Agent shall permit the applicable Credit Party to replace,
restore, repair or rebuild the property; provided that if such Credit
Party shall not have completed or entered into binding agreements to complete
such replacement, restoration, repair or rebuilding within 365 days of such
casualty, Agent may apply such insurance proceeds to the Obligations in
accordance with Section 1.3(d) and Section 1.11(b).  All insurance proceeds that are to be made
available to Borrowers to replace, repair, restore or rebuild the Collateral
shall be applied by Agent to reduce the outstanding principal balance of the
Revolving Loan (which application shall not result in a permanent reduction of
the Revolving Loan Commitment).  All
insurance proceeds made available to any Credit Party that is not a Borrower to
replace, repair, restore or rebuild Collateral shall be deposited in a cash
collateral account.  Thereafter, such
funds shall be made available to Borrowers or other Credit Parties, as
applicable, to provide funds to replace, repair, restore or 

 

34

 

rebuild the Collateral as
follows: (i) Borrower Representative shall request a Revolving Credit
Advance to be made to Borrowers or a release from the cash collateral account
to be made to Credit Parties in the amount requested to be released; and (ii) so
long as the conditions set forth in Section 2.2 have been met,
Revolving Lenders shall make such Revolving Credit Advance or, so long as no
Default or Event of Default has occurred and is continuing, Agent shall release
funds from the cash collateral account. 
To the extent not used to replace, repair, restore or rebuild the Collateral,
such insurance proceeds shall be applied as agreed among the Lenders.

 

5.5           Compliance with Laws.  Each Credit
Party shall comply with all United States federal, state and local laws,
regulations and decrees and all foreign laws, regulations and decrees, in each
case, applicable to it, including those relating to ERISA, employment and labor
matters and Environmental Laws and Environmental Permits, except to the extent
that the failure to comply, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.

 

5.6           Supplemental Disclosure.  From time to
time as may be reasonably requested by Agent (which request will not be made
prior to the second anniversary of the Closing Date or more than once during
the term of this Agreement, in each case, absent the occurrence and continuance
of a Default or an Event of Default), the Credit Parties shall supplement each
Disclosure Schedule hereto, or any representation herein or in any other Loan
Document, with respect to any matter hereafter arising that, if existing or
occurring at the date of this Agreement, would have been required to be set
forth or described in such Disclosure Schedule or as an exception to such
representation or that is necessary to correct any information in such
Disclosure Schedule or representation which has been rendered inaccurate
thereby (and, in the case of any supplements to any Disclosure Schedule, such
Disclosure Schedule shall be appropriately marked to show the changes made
therein); provided that (a) no such supplement to any such
Disclosure Schedule or representation shall amend, supplement or otherwise
modify any Disclosure Schedule or representation, or be or be deemed a waiver
of any Default or Event of Default resulting from the matters disclosed
therein, except as consented to by Agent and Requisite Lenders in writing, and (b) no
supplement shall be required or permitted as to representations and warranties
that relate solely to the Closing Date.

 

5.7           Intellectual Property.  Each Credit
Party will conduct its business and affairs without infringement of or
interference with any Intellectual Property of any other Person in any material
respect.

 

5.8           Environmental Matters.  Each Credit
Party shall and shall cause each Person within its control to: (a) conduct
its operations and keep and maintain its Real Estate in compliance with all
Environmental Laws and Environmental Permits other than noncompliance that
could not reasonably be expected to have a Material Adverse Effect; (b) implement
any and all investigation, remediation, removal and response actions that are
appropriate or necessary to comply with Environmental Laws and Environmental
Permits pertaining to the presence, generation, treatment, storage, use,
disposal, transportation or Release of any Hazardous Material on, at, in,
under, above, to, from or about any of its Real Estate; provided, that
no Credit Party shall be required to undertake such actions to the extent that
its obligations to do so are being contested in good faith and by proper
proceedings and adequate reserves therefor have been 

 

35

 

established in accordance
with GAAP; (c) notify Agent promptly after such Credit Party becomes aware
of any violation of Environmental Laws or Environmental Permits, or any Release
on, at, in, under, above, to, from or about any Real Estate, that is reasonably
likely to result in Environmental Liabilities in excess of $250,000; and (d) promptly
forward to Agent a copy of any written order, notice, request for information
or any other written communication or report received by such Credit Party in
connection with any violation or Release which is the subject of subpart 5.8(c) above,
in each case whether or not the Environmental Protection Agency or any
Governmental Authority has taken or threatened any action in connection with
any such violation or Release.  If Agent
at any time has a reasonable basis to believe that there may be a violation of
any Environmental Laws or Environmental Permits by any Credit Party or any
Environmental Liability arising thereunder, or a Release of Hazardous Materials
on, at, in, under, above, to, from or about any of its Real Estate, that, in
each case, is in breach of Section 3.17 or this Section 5.8
and could reasonably be expected to have a Material Adverse Effect, then (i) the
relevant Credit Party shall, upon Agent’s written request, cause the
performance of such environmental audits including reasonable subsurface
sampling of soil and groundwater, and preparation of such environmental
reports, at Borrowers’ expense, as Agent may from time to time reasonably
request, which shall be conducted by reputable environmental consulting firms
reasonably acceptable to Agent and shall be in form and substance reasonably
acceptable to Agent and (ii) if, upon Agent’s reasonable request, the
relevant Credit Party shall fail to take reasonable steps to commence such
audits within 30 days of such request the relevant Credit Party shall permit
Agent or its representatives to have access to all Real Estate for the purpose
of conducting such environmental audits and testing reasonably appropriate,
including subsurface sampling of soil and groundwater; provided, that (x) Agent
use a reputable environmental consulting firm reasonably acceptable to the
Credit Party, (y) such firm carry appropriate levels of insurance and (z) such
audit not unreasonably interfere with the Credit Party’s operations.  Borrowers shall reimburse Agent for the
reasonable costs of such audits and tests and the same will constitute a part
of the Obligations secured hereunder.

 

5.9           Landlords’ Agreements, Mortgagee Agreements, Bailee
Letters and Real Estate Purchases.  Each Credit
Party shall use commercially reasonable efforts to obtain a landlord’s
agreement, mortgagee agreement or bailee letter, as applicable, from the lessor
of each leased property, mortgagee of owned property or bailee with respect to
any warehouse, processor or converter facility or other location where
Collateral is stored or located, which agreement or letter shall contain a waiver
or subordination of all Liens or claims that the landlord, mortgagee or bailee
may assert against the Collateral at that location, and shall otherwise be
reasonably satisfactory in form and substance to Agent.  After the Closing Date, no real property or
warehouse space shall be leased by any Credit Party and no Inventory shall be
shipped to a processor or converter under arrangements established after the
Closing Date without the prior written consent of Agent or, unless and until a
reasonably satisfactory landlord agreement or bailee letter, as appropriate,
shall first have been obtained with respect to such location.  Each Credit Party shall timely and fully pay
and perform its material obligations under all leases and other agreements with
respect to each leased location or public warehouse where any Collateral is or
may be located.  To the extent otherwise
permitted hereunder, if any Credit Party proposes to acquire a fee ownership
interest in Real Estate after the Closing Date, it shall first provide to Agent
a mortgage, debenture or deed of trust granting Agent a first priority Lien on
such Real Estate, together with environmental audits, mortgage title insurance
commitment, real property survey, local counsel opinion(s), and, if required by
Agent supplemental casualty insurance and 

 

36

 

flood insurance, and such
other documents, instruments or agreements reasonably requested by Agent, in
each case, in form and substance reasonably satisfactory to Agent.

 

5.10         Further Assurances.  Each Credit
Party executing this Agreement agrees that it shall and shall cause each other
Credit Party to, at such Credit Party’s expense and upon request of Agent, duly
execute and deliver, or cause to be duly executed and delivered, to Agent such
further instruments and do and cause to be done such further acts as may be
necessary or proper in the reasonable opinion of Agent to carry out more
effectively the provisions and purposes of this Agreement or any other Loan Document.

 

5.11         Credit Rating.  The Credit
Parties shall maintain a public corporate rating and ratings with respect to
the credit facilities under this Agreement from both Moody’s and S&P.

 

5.12         Intentionally Omitted.

 

5.13         New Subsidiaries.  At the time
of the formation of any Subsidiary of any Credit Party or acquisition of a
Subsidiary of any Credit Party pursuant to Section 6.1(a), Credit
Parties, or any of them, as appropriate, shall (a) cause each such new
United States domestic Subsidiary to join this Agreement by providing to Agent
a joinder agreement in the form of Exhibit 5.13 hereto (a “Credit
Agreement Joinder Agreement”), (b) cause each such new United States
domestic Subsidiary to deliver to Agent a supplement to the Guaranty, a
supplement to the Security Agreement, a supplement to the Pledge Agreement, and
such other security documents (including, without limitation, any mortgage,
deed to secure debt or deed of trust where such Subsidiary owns real property)
requested by Agent in its discretion, together with appropriate UCC-1 financing
statements, all in form and substance satisfactory to Agent and subject to
Permitted Encumbrances, (c) with respect to all new Subsidiaries that are
owned in whole or in part by a Credit Party, provide to Agent a supplement to
the Pledge Agreement or such other Pledge Agreements, in each case, providing
for the pledge (subject to Permitted Encumbrances) of the direct and beneficial
interests in such new Subsidiary (or, in the case of the pledge of a direct
Foreign Subsidiary, 65% of all of the Stock of such Subsidiary) as shall be
requested by Agent, together with appropriate certificates and powers or
financing statements under the Uniform Commercial Code or other applicable
personal property or movable property registries or other documents necessary
to perfect such pledge, in form and substance satisfactory to Agent; provided,
that no such pledge shall be required with respect to the Stock of a new
Foreign Subsidiary of a Credit Party unless and until such Subsidiary has
assets with a value of $1,000,000 or more, and (d) provide to Agent all
other documentation, including one or more opinions of counsel satisfactory to
Agent, which in its opinion is appropriate with respect to such formation and
the execution and delivery of the applicable documentation referred to
above.  Upon execution and delivery of a
Credit Agreement Joinder Agreement by each new United States domestic
Subsidiary, such Subsidiary shall become a Credit Party hereunder with the same
force and effect as if originally named as a Credit Party herein.  The execution and delivery of any Credit
Agreement Joinder Agreement shall not require the consent of any Credit Party
or Lender hereunder.  The rights and
obligations of each Credit Party hereunder shall remain in full force and
effect notwithstanding the addition of any Credit Party hereunder.  Any document, agreement or instrument
executed or issued pursuant to this Section 5.13 shall be a “Loan
Document” for purposes of this Agreement.

 

37

 

6.             NEGATIVE COVENANTS

 

Each
Credit Party executing this Agreement jointly and severally agrees as to all
Credit Parties and their respective Subsidiaries that from and after the date
hereof until the Termination Date:

 

6.1           Mergers, Subsidiaries, Etc. 
No Credit Party shall, or shall permit any Subsidiary to, directly or
indirectly, by operation of law or otherwise,

 

(a)           form any Subsidiary after the Closing Date; provided,
however, that Credit Parties and their Subsidiaries may form new
Subsidiaries after the Closing Date so long as (i) no Default or Event of
Default has occurred and is continuing, (ii) each Foreign Subsidiary is at
least 80% owned by a Credit Party, (iii) each United States domestic
Subsidiary is wholly owned by a Credit Party, (iv) contemporaneously with
the formation of any such new Subsidiary, Credit Parties and each new
Subsidiary, as applicable, comply with the provisions of Section 5.13;
or

 

(b)           merge with, consolidate with, amalgamate with, acquire
all or substantially all of the assets or Stock of, or otherwise combine with
or acquire, any Person, except that (i) any Credit Party (other than
Holdings) may merge into a Borrower and any Credit Party that is not a Borrower
or Holdings may merge into another Credit Party that is not a Borrower or
Holdings, provided that Borrower Representative shall be the survivor of
any such merger to which it is a party and, in the event of a merger between a
Credit Party that is not a Borrower and a Borrower, such Borrower shall be the
survivor of any such merger and (ii) any Foreign Subsidiary may merge into
another Foreign Subsidiary; provided, however, that Borrower Representative
shall provide Agent with 30 days prior written notice of such merger under this
clause (iii) and Credit Parties shall deliver to Agent on the date of
consummation of any such merger any additional pledge agreements or amendments
to the Pledge Agreements as shall be reasonably requested by Agent in
connection with such merger. 
Notwithstanding the foregoing, any Credit Party or direct Foreign
Subsidiary (so long as, with respect to any acquisition by (A) Holdings,
contemporaneously therewith, all assets so acquired are transferred to one or
more Credit Parties, and (B) a direct Foreign Subsidiary, such acquisition
complies with the limits on acquisitions that involve assets located in a
jurisdiction outside of the United States set forth in clause (v) of this Section 6.1(b) and
is in the form of an asset acquisition unless the Subsidiary so acquired is
contemporaneously therewith merged into a direct Foreign Subsidiary of a Credit
Party), may acquire all or substantially all of the assets or Stock of any
Person (the “Target”) (in each case, a “Permitted Acquisition”)
subject to the satisfaction of each of the following conditions (provided, that
condition (vi) may be waived by Agent):

 

(i)            Agent shall receive at least ten (10) Business
Days’ prior written notice of such proposed Permitted Acquisition, which notice
shall include a reasonably detailed description of such proposed Permitted
Acquisition;

 

(ii)           such Permitted Acquisition by a Credit Party or a
direct Foreign Subsidiary shall comprise a business, or those assets of a
business, of a type reasonably related to the type engaged in by Borrowers as
of the Closing Date, and which business would not subject Agent or any Lender
to regulatory or third party approvals in connection with the exercise of its
rights and remedies under this Agreement or any other Loan Documents other than
approvals 

 

38

 

applicable to the
exercise of such rights and remedies with respect to Borrowers prior to such
Permitted Acquisition;

 

(iii)          such Permitted Acquisition shall be consensual and
shall have been approved by the Target’s board of directors;

 

(iv)          no additional Indebtedness, Guaranteed Indebtedness,
contingent obligations or other liabilities shall be incurred, assumed or
otherwise be reflected on a consolidated balance sheet of Credit Parties and
Target after giving effect to such Permitted Acquisition, except, without
duplication, (A) Loans made hereunder, (B) ordinary course trade
payables, accrued expenses and unsecured or secured Indebtedness of the Target
to the extent no Default or Event of Default has occurred and is continuing or
would result after giving effect to such Permitted Acquisition and (C) Indebtedness
permitted under Section 6.3(a)(xii) and Section 6.3(a)(xiii);

 

(v)           the sum of all amounts payable in connection with all
Permitted Acquisitions (including all transaction costs and all Indebtedness,
liabilities and contingent obligations incurred or assumed in connection
therewith or otherwise reflected in a consolidated balance sheet of Borrowers
and Target) shall not exceed $125,000,000 per acquisition and $250,000,000 in
the aggregate during the term of this Agreement, of which $20,000,000 may be
used for acquisitions that involve assets located in a jurisdiction outside of
the United States, plus the amount of Stock issued by Holdings to any seller in
connection with, and as the purchase price or portion of the purchase price
for, any Permitted Acquisition;

 

(vi)          the Target shall not have incurred an operating loss
for the trailing twelve-month period preceding the date of the Permitted Acquisition,
as determined based upon the Target’s financial statements for its most
recently completed fiscal year and its most recent interim financial period
completed within sixty (60) days prior to the date of consummation of such
Permitted Acquisition;

 

(vii)         the business and assets acquired in such Permitted
Acquisition shall be free and clear of all Liens (other than Permitted
Encumbrances);

 

(viii)        to the extent the assets being acquired in connection
with any Permitted Acquisition are located in the United States, at or prior to
the closing of such Permitted Acquisition, Agent will be granted a first
priority perfected Lien (subject to Permitted Encumbrances) in all assets
acquired pursuant thereto, and Credit Parties shall have executed such
documents and taken such actions as may be required by Agent in connection
therewith;

 

(ix)           Concurrently with delivery of the notice referred to
in clause (i) above, Borrowers shall have delivered to Agent, in
form and substance reasonably satisfactory to Agent:

 

(1)           a pro forma consolidated balance sheet, income
statement and cash flow statement of Holdings and its Subsidiaries (the “Acquisition
Pro Forma”), based on recent financial statements, which shall be complete
and shall fairly present in all material respects the assets, liabilities,
financial condition and results of operations of Holdings and its Subsidiaries
in accordance with GAAP consistently applied, but taking into account such 

 

39

 

Permitted Acquisition and
the funding of all Loans in connection therewith, and such Acquisition Pro
Forma shall reflect that, on a pro forma basis, (A) no Event of Default
has occurred and is continuing or would result after giving effect to such
Permitted Acquisition and (B) Borrowers would have been in compliance with
the financial covenants set forth in Annex G for the four quarter period
reflected in the Compliance Certificate most recently delivered to Agent
pursuant to Annex E prior to the consummation of such Permitted Acquisition
(after giving effect to such Permitted Acquisition and all Loans funded in
connection therewith as if made on the first day of such period);

 

(2)           updated versions of the most recently delivered
Projections covering the 1-year period commencing on the date of such Permitted
Acquisition and otherwise prepared in accordance with the Projections (the “Acquisition
Projections”) and based upon historical financial data of a recent date
reasonably satisfactory to Agent, taking into account such Permitted
Acquisition; and

 

(3)           a certificate of the chief financial officer of
Holdings and each Borrower to the effect that: (w) each Borrower (after
taking into consideration all rights of contribution and indemnity such
Borrower has against Holdings and each other Subsidiary of Holdings) will be
Solvent upon the consummation of the Permitted Acquisition; (x) the
Acquisition Pro Forma fairly presents the financial condition of Holdings and
its Subsidiaries (on a consolidated basis) as of the date thereof after giving
effect to the Permitted Acquisition; (y) the Acquisition Projections are
reasonable estimates of the future financial performance of Holdings and its
Subsidiaries subsequent to the date thereof based upon the historical
performance of Holdings and its Subsidiaries and the Target and show that
Holdings and its Subsidiaries shall continue to be in compliance with the
financial covenants set forth in Annex G for the 3-year period
thereafter; and (z) Holdings and Borrowers have completed their due diligence
investigation with respect to the Target and such Permitted Acquisition, which
investigation was conducted in a manner similar to that which would have been
conducted by a prudent purchaser of a comparable business and the results of
which investigation were delivered to Agent and Lenders;

 

(x)            on or prior to the date of such Permitted Acquisition,
Agent shall have received, in form and substance reasonably satisfactory to
Agent, copies of the acquisition agreement and related agreements and
instruments, and all opinions, certificates, lien search results and other
documents reasonably requested by Agent including those specified in the last
sentence of Section 5.9;

 

(xi)           at the time of such Permitted Acquisition and after
giving effect thereto, no Default or Event of Default has occurred and is
continuing; and

 

(xii)          after giving effect to any Permitted Acquisition, the
aggregate amount of investments in Subsidiaries that are not Credit Parties
shall not exceed the amount set forth in Section 6.2(g) (after
giving effect to all other investments made under such Section 6.2(g)).

 

Notwithstanding anything to the contrary contained
herein, if operating income of the Target for the most recently ended twelve
fiscal months is greater than or equal to $5,000,000 and the 

 

40

 

purchase price of the Permitted Acquisition,
including, without limitation, any assumed Indebtedness, is less than or equal
to $20,000,000, Borrowers shall not be required to deliver the items required
in Section 6.1(b)(ix); provided that Borrowers shall be
required to deliver (a) a balance sheet, income statement and cash flow
statement of the Target for the Fiscal Year most recently ended and interim
financial statements, to the extent available, for the period from the most
recently ended Fiscal Year to the date of such Permitted Acquisition, (b) projections
of the Target covering the 1 year period commencing on the date of such
Permitted Acquisition and (c) a certificate of the chief financial officer
of Holdings and each Borrower to the effect that (i) each Borrower (after
taking into consideration all rights of contribution and indemnity such
Borrower has against Holdings and each other Subsidiary of Holdings) will be
Solvent upon the consummation of the Permitted Acquisition, (ii) Holdings
and Borrowers have completed their due diligence investigation with respect to
the Target and such Permitted Acquisition, which investigation was conducted in
a manner similar to that which would have been conducted by a prudent purchaser
of a comparable business and the results of which investigation were delivered
to Agent and Lenders and (iii) after giving effect to such Permitted
Acquisition, no Default or Event of Default shall have occurred and be continuing.

 

6.2           Investments; Loans and Advances. 
Except as otherwise expressly permitted by this Section 6,
no Credit Party shall, or shall permit any Subsidiary of a Credit Party to,
make or permit to exist any investment in, or make, accrue or permit to exist
loans or advances of money to, any Person, through the direct or indirect
lending of money, holding of securities or otherwise (collectively, “investments”),
except that:

 

(a)           Borrowers and Foreign Subsidiaries may hold
investments comprised of notes payable, or stock or other securities issued by
Account Debtors to any Borrower or Foreign Subsidiary, as applicable, pursuant
to negotiated agreements with respect to settlement of such Account Debtor’s
Accounts in the ordinary course of business, so long as the aggregate amount of
such Accounts so settled by Borrowers and Foreign Subsidiaries does not exceed
$1,000,000;

 

(b)           each Credit Party may maintain its existing
investments in its Subsidiaries as of the Closing Date;

 

(c)           each Credit Party and any direct Foreign Subsidiary
may make any investment that constitutes or is otherwise permitted in
connection with a Permitted Acquisition;

 

(d)           Borrowers may make minority investments in an
aggregate amount with respect to all such investments not to exceed $1,000,000
in a Person that is a corporation or limited liability company, subject to the
following conditions (in each case, as may be waived by Agent):

 

(i)            Intentionally Omitted;

 

(ii)           such corporation or limited liability company shall be
formed under the laws of the United States or Canada or any state or province
thereof and its assets shall be located in the United States or Canada and
comprise a business, or those assets of a business, of the type engaged in by
Borrowers as of the Closing Date;

 

41

 

(iii)          no additional Indebtedness, Guaranteed Indebtedness,
contingent obligations or other liabilities shall be incurred, assumed or
otherwise be reflected on a consolidated balance sheet of Credit Parties after
giving effect to such investment, except (1) Loans made hereunder and (2) Indebtedness
permitted under Section 6.3(a)(xiii), and no Credit Party shall
have any obligation to make additional investments in such corporation or
limited liability company after its initial investment therein;

 

(iv)          the corporation or limited liability company shall not
have incurred an operating loss for the trailing twelve-month period preceding
the date of the investment, as determined based upon the corporation or limited
liability company’s financial statements for its most recently completed fiscal
year and its most recent interim financial period completed within 60 days
prior to the date of consummation of such investment;

 

(v)           at or prior to the closing of any such investment, to
the extent not prohibited by the corporate or limited liability company
documents, Agent will be granted a first priority perfected Lien (subject to
Permitted Encumbrances) in Credit Parties’ interest in such corporation or
limited liability company and Credit Parties shall have executed such documents
and taken such actions as may be required by Agent in connection therewith;

 

(vi)          on or prior to the date of such investment, Agent
shall have received, in form and substance reasonably satisfactory to Agent,
copies of the articles of incorporation or formation, by-laws or operating
agreement and related agreements and instruments, and all opinions,
certificates and other documents reasonably requested by Agent; and

 

(vii)         at the time of such investment and after giving effect
thereto, no Default or Event of Default has occurred and is continuing;

 

(e)           Foreign Subsidiaries (other than Foreign Subsidiaries
operating in Brazil) and, so long as Agent has not delivered an Activation
Notice, Borrowers may make investments, subject to Control Letters, with
respect to investments of any Credit Party, in favor of Agent or otherwise
subject to a perfected security interest in favor of Agent in (i) marketable
direct obligations issued or unconditionally guaranteed by the United States of
America or Canada or any agency thereof maturing within one year from the date
of acquisition thereof, (ii) commercial paper maturing no more than one
year from the date of creation thereof and currently having the highest rating
obtainable from either S&P or Moody’s, (iii) certificates of deposit
maturing no more than one year from the date of creation thereof issued by
commercial banks incorporated under the laws of the United States of America or
Canada, each having combined capital, surplus and undivided profits of not less
than $300,000,000 and having a senior unsecured rating of “A” or better by a
nationally recognized rating agency (an “A Rated Bank”), (iv) time
deposits maturing no more than thirty (30) days from the date of creation
thereof with A Rated Banks, (v) mutual funds that invest solely in one or
more of the investments described in clauses (i) through (iv) above, (vi) money
market funds that invest substantially in one or more of the investments
described in clauses (i) through (iv) above and (vii) substantially
similar investments to those set forth in clauses (i) through (vi) above
denominated in (A) Euro or Sterling, or (B) other foreign currencies
in an aggregate amount not to exceed $5,000,000 (or the applicable Dollar
equivalent); provided that references to the 

 

42

 

United States shall be
deemed to mean foreign countries having a sovereign rating of “A” or better
from either S&P or Moody’s;

 

(f)            in the case of Foreign Subsidiaries operating in
Brazil, Investments made in the ordinary course of business in export notes in
Dollars issued by a Brazilian commercial bank with maturities of one year or
less from the date of acquisition thereof (or, if export notes are not
available, certificates of deposit issued by a Brazilian commercial bank with
maturities of one year or less from the date of acquisition thereof and
denominated in Brazilian reals swapped for Dollars pursuant to a hedge
agreement permitted hereunder) and overnight Investments in short term
Brazilian government securities made in the ordinary course of business;

 

(g)           (i) investments by any Credit Party in another
Credit Party, and by any Foreign Subsidiary in another Foreign Subsidiary and (ii) investments
by Credit Parties in Subsidiaries that are not Credit Parties so long as the
aggregate amount of such investments (excluding any such investments that are
assumed and exist on the date any Permitted Acquisition is consummated and that
are not made, incurred or created in contemplation of or in connection with
such Permitted Acquisition) made shall not at any time exceed, in the
aggregate, $20,000,000;

 

(h)           investments in an aggregate amount of up to
$15,000,000 in Blount China, so long as no Default or Event of Default exists
at the time of such investment or would be caused thereby;

 

(i)            Intentionally Omitted; and

 

(j)            other investments not exceeding $7,500,000 in the
aggregate at any time outstanding.

 

6.3           Indebtedness.

 

(a)           No Credit Party shall, or shall permit any Subsidiary
of any Credit Party to, create, incur, assume or permit to exist any
Indebtedness, except (without duplication):

 

(i)            Indebtedness secured by purchase money security
interests and Capital Leases permitted in Section 6.7(c),

 

(ii)           the Loans and the other Obligations,

 

(iii)          unfunded pension fund and other employee benefit plan
obligations and liabilities to the extent they are permitted to remain unfunded
under applicable law,

 

(iv)          the New Subordinated Debt,

 

(v)           other existing Indebtedness described in Disclosure
Schedule (6.3) and refinancings thereof or amendments or modifications
thereto that do not have the effect of increasing the principal amount thereof
or changing the amortization thereof (other than to extend the same) and that
are otherwise on terms and conditions no less favorable to any Credit 

 

43

 

Party, Agent or any
Lender, as determined by Agent than the terms of the Indebtedness being
refinanced, amended or modified,

 

(vi)          Indebtedness specifically permitted under Section 6.1,

 

(vii)         Indebtedness specifically permitted under Section 6.6,

 

(viii)        Indebtedness specifically permitted under Section 6.17,

 

(ix)           Indebtedness consisting of intercompany loans and
advances made by any Credit Party or Subsidiary of a Credit Party to any other
Credit Party; provided, that: (A) each Credit Party shall have
executed and delivered to each other Credit Party or Subsidiary of a Credit
Party, on the Closing Date, a demand note (collectively, the “Intercompany
Notes”) to evidence any such intercompany Indebtedness owing at any time by
such Credit Party to such other Credit Party or Subsidiary of a Credit Party
which Intercompany Notes shall be in form and substance reasonably satisfactory
to Agent and shall be pledged and delivered to Agent pursuant to the applicable
Collateral Documents as additional collateral security (subject to Permitted
Encumbrances) for the Obligations; (B) each Credit Party shall record all
intercompany transactions on its books and records in a manner reasonably
satisfactory to Agent; (C) the obligations of each Credit Party under any
such Intercompany Notes shall be subordinated to the Obligations of such Credit
Party hereunder in a manner reasonably satisfactory to Agent; (D) at the
time any such intercompany loan or advance is made by any Credit Party or
Subsidiary of a Credit Party to any other Credit Party and after giving effect
thereto, each such Credit Party shall be Solvent; and (E) no Default or
Event of Default would occur and be continuing after giving effect to any such
proposed intercompany loan,

 

(x)            Indebtedness of Foreign Subsidiaries owed to Credit
Parties in an aggregate amount not to exceed $5,000,000 at any time
outstanding,

 

(xi)           Other Indebtedness of Foreign Subsidiaries in an aggregate
amount not to exceed $10,000,000 at any time outstanding,

 

(xii)          Other unsecured Indebtedness (including, without
limitation, repurchase obligations arising in connection with financing
provided by certain financial institutions to certain dealers with respect to
Inventory purchased by such dealers from Credit Parties) in an aggregate amount
not to exceed $20,000,000 at any time outstanding; provided, however,
that any such other unsecured Indebtedness of Foreign Subsidiaries shall not
exceed $10,000,000 in the aggregate at any time outstanding, and

 

(xiii)         Indebtedness (A) incurred to finance or otherwise
in contemplation of any Permitted Acquisition or investment that is unsecured
Indebtedness, or (B) assumed as a result of or in connection with any Permitted
Acquisition, in an aggregate amount under clauses (A) and (B) of this
clause not to exceed $50,000,000, of which up to $20,000,000 of the
Indebtedness permitted under clause (B) may be secured Indebtedness; provided,
that all assumed Indebtedness by Foreign Subsidiaries permitted pursuant to
this clause (xiii), together with the Indebtedness permitted pursuant to Section 6.3(a)(xi)
and Section 6.3(a)(xii), shall not exceed $20,000,000; provided,
further, that at the time of such incurrence or assumption of 

 

44

 

Indebtedness and after
giving effect thereto, no Default or Event of Default has occurred and is
continuing.

 

(b)           No Credit Party shall, directly or indirectly,
voluntarily purchase, redeem, defease or prepay any principal of, premium, if
any, interest or other amount payable in respect of, or permit any Subsidiary
to, directly or indirectly, voluntarily purchase, redeem, defease or prepay any
principal of, premium, if any, interest or other amount payable in respect of,
any Indebtedness, other than:

 

(i)            the Obligations;

 

(ii)           Indebtedness secured by a Permitted Encumbrance if the
asset securing such Indebtedness has been sold or otherwise disposed of in
accordance with Sections 6.8(b) or (c);

 

(iii)          Indebtedness permitted by Section 6.3(a)(v) upon
any refinancing thereof in accordance with Section 6.3(a)(v);

 

(iv)          other Indebtedness (excluding Subordinated Debt) in an
aggregate amount not to exceed $1,000,000; and

 

(v)           as otherwise permitted in Section 6.14.

 

6.4           Employee Loans and Affiliate Transactions.

 

(a)           No Credit Party shall enter into or be a party to any
transaction with any other Credit Party or any Affiliate thereof except in the
ordinary course of and pursuant to the reasonable requirements of such Credit
Party’s business and upon fair and reasonable terms that are no less favorable
to such Credit Party than would be obtained in a comparable arm’s length
transaction with a Person not an Affiliate of such Credit Party.  In addition, if any Credit Party enters into
a new type of material transaction with an Affiliate after the Closing Date, it
shall disclose such transaction in advance to Agent and Lenders.  All such material transactions (other than
Inventory sales in the ordinary course of business) existing as of the date
hereof are described in Disclosure Schedule (6.4(a)).

 

(b)           No Credit Party shall, or shall permit any Subsidiary
of a Credit Party to, enter into any lending or borrowing transaction with any
employees of any Credit Party or any such Subsidiaries, except loans to its
respective employees in the ordinary course of business consistent with past
practices for travel and entertainment expenses, relocation costs and similar
purposes up to a maximum of $500,000 in the aggregate at any one time
outstanding.

 

6.5           Capital Structure and Business. 
No Credit Party shall, or shall permit any Subsidiary of any Credit
Party to, (a) make any changes in any of its business objectives, purposes
or operations that could in any way adversely affect the repayment of the Loans
or any of the other Obligations or could reasonably be expected to have or
result in a Material Adverse Effect, (b) except for mergers or
amalgamations among Credit Parties or such Subsidiaries, as applicable,
specifically permitted under Section 6.1, make any change in its
capital structure as described in Disclosure Schedule (3.8), including
the issuance or sale of any shares of Stock 

 

45

 

(except Excluded Stock
Issuances), warrants or other securities convertible into Stock or any revision
of the terms of its outstanding Stock; provided that Holdings may issue
or sell shares of its Stock for cash so long as (i) the proceeds thereof
are applied in prepayment of the Obligations as required by Section 1.3(b)(iii),
and (ii) no Change of Control occurs after giving effect thereto, or (c) amend
its charter or bylaws in a manner that would adversely affect Agent or Lenders
or such Credit Party’s duty or ability to repay the Obligations.  No Credit Party shall, or shall permit any
Subsidiary of any Credit Party to, engage in any business other than the
businesses currently engaged in by it or businesses reasonably related thereto.

 

6.6           Guaranteed Indebtedness.  No Credit
Party shall, or shall permit any Subsidiary of any Credit Party to, create,
incur, assume or permit to exist any Guaranteed Indebtedness except (a) by
endorsement of instruments or items of payment for deposit to the general
account of any Credit Party or such Subsidiary, (b) for Guaranteed
Indebtedness incurred for the benefit of any other Credit Party if the primary
obligation is expressly permitted by this Agreement and (c) for Guaranteed
Indebtedness permitted under Section 6.3(a)(v) or Section 6.3(a)(xii)
with respect to repurchase obligations arising in connection with financing
provided by certain financial institutions to certain dealers with respect to
Inventory purchased by such dealers from Credit Parties.

 

6.7           Liens.  No Credit
Party shall, or shall permit any Subsidiary of any Credit Party to, create,
incur, assume or permit to exist any Lien on or with respect to its Accounts or
any of its other properties or assets (whether now owned or hereafter acquired)
except for, without duplication:

 

(a)           Permitted Encumbrances;

 

(b)           Liens in existence on the date hereof and summarized
on Disclosure Schedule (6.7) securing the Indebtedness described on Disclosure
Schedule (6.3) and permitted refinancings, extensions and renewals thereof,
including extensions or renewals of any such Liens; provided that the
principal amount of the Indebtedness so secured is not increased and the Lien
does not attach to any other property;

 

(c)           Liens created after the date hereof by conditional
sale or other title retention agreements (including Capital Leases) or in
connection with purchase money Indebtedness with respect to Equipment and
Fixtures acquired by any Credit Party in the ordinary course of business,
involving the incurrence of an aggregate amount of purchase money Indebtedness
and Capital Lease Obligations of not more than $5,000,000 outstanding at any
one time for all such Liens (provided that such Liens attach only to the
assets subject to such purchase money debt and such Indebtedness is incurred
within 30 days following such purchase and does not exceed 100% of the purchase
price of the subject assets); and

 

(d)           Liens securing Indebtedness permitted under (A) Section 6.3(a)(xi)
to the extent such Liens are solely on property of the issuer of such
Indebtedness or (B) Section 6.3(a)(xiii)(B) to the extent
such Liens are solely on the assets or Stock of the Target or its Subsidiaries.

 

46

 

In addition, no Credit Party shall become a party to
any agreement, note, indenture or instrument, or take any other action, after
the date hereof that would prohibit the creation of a Lien on any of its
properties or other assets in favor of Agent, on behalf of itself and Lenders,
as additional Collateral for the Obligations, except operating leases, Capital
Leases or Licenses, or in connection with a Permitted Acquisition with respect
to properties or other assets secured by Liens permitted under Section 6.7(d)(B),
which prohibit Liens upon the assets that are subject thereto.

 

6.8           Sale of Stock and Assets. 
No Credit Party shall, or shall permit any Subsidiary of any Credit
Party to, sell, transfer, convey, assign or otherwise dispose of any of its
properties or other assets, including the Stock of any of its Subsidiaries
(whether in a public or a private offering or otherwise) or any of its
Accounts, other than (a) the sale of Inventory, license of Intellectual
Property or the use of cash or cash equivalents, in each case, in the ordinary
course of business; (b) the sale, transfer, conveyance or other
disposition by a Credit Party or any Foreign Subsidiary of Equipment or
Fixtures that are obsolete or no longer used or useful in such Credit Party’s
or such Foreign Subsidiary’s business; (c) the sale of all of the Stock or
substantially all of the assets of Gear so long as (i) no Default or Event
of Default exists or would be caused thereby or (ii) Requisite Lenders
otherwise consent to such sale; (d) other assets having a value not
exceeding $5,000,000 in the aggregate in any Fiscal Year; and (e) leases
and subleases of Real Estate not materially interfering with the ordinary
conduct of business of the applicable Credit Parties and otherwise consented to
by Agent which consent will not be unreasonably withheld. With respect to any
disposition of assets or other properties permitted pursuant to clauses (b),
(c), or (d) above, subject to Section 1.3(b),
Agent agrees on reasonable prior written notice to release its Lien on such
assets or other properties in order to permit the applicable Credit Party to
effect such disposition and shall execute and deliver to Borrowers, at
Borrowers’ expense, appropriate UCC-3 termination statements and other releases
as are reasonably requested by Borrowers.

 

6.9           ERISA and Benefit Plans.  No Credit
Party shall, or shall cause or permit any ERISA Affiliate to, cause or permit
to occur an event that could result in the imposition of a Lien under Section 412
of the IRC or Section 302 or 4068 of ERISA other than a Lien under Section 412
of the IRC or Section 302 of ERISA that is permitted under clause (q) of
the definition of Permitted Encumbrances or cause or permit to occur an ERISA
Event to the extent such ERISA Event could reasonably be expected to have a
Material Adverse Effect.

 

6.10         Financial Covenants.  Borrowers shall
not breach or fail to comply with any of the Financial Covenants.

 

6.11         Hazardous Materials.  No Credit
Party shall, or shall permit any Subsidiary of any Credit Party to, cause or
permit a Release of any Hazardous Material on, at, in, under, above, to, from
or about any of the Real Estate where such Release would violate in any
respect, or form the basis for any Environmental Liabilities under, any
Environmental Laws or Environmental Permits, other than such violations or
Environmental Liabilities that could not reasonably be expected to have a
Material Adverse Effect.

 

47

 

6.12         Sale-Leasebacks.  No Credit
Party shall, or shall permit any Subsidiary of any Credit Party to, engage in
any sale-leaseback, synthetic lease or similar transaction involving any of its
assets.

 

6.13         Cancellation of Indebtedness. 
No Credit Party shall, or shall permit any Subsidiary of any Credit
Party to, cancel any claim or debt owing to it, except for reasonable
consideration negotiated on an arm’s length basis and in the ordinary course of
its business consistent with past practices.

 

6.14         Restricted Payments.  No Credit
Party shall, or shall permit any Subsidiary of a Credit Party to, make any
Restricted Payment, except (a) intercompany loans and advances between
Credit Parties to the extent permitted by Section 6.3, (b) dividends
and distributions by Subsidiaries of any Credit Party paid to a Credit Party or
a Subsidiary of a Credit Party, (c) employee loans permitted under Section 6.4(b),
(d) payments of principal and interest of Intercompany Notes issued in
accordance with Section 6.3; (e) scheduled cash payments of
interest with respect to other Subordinated Debt, provided, that (i) no
Default or Event of Default has occurred and is continuing or would result
after giving effect to any Restricted Payment pursuant to clause  (e) above,
and (ii) with respect to any Subordinated Debt created after the Closing
Date, the timing of the Restricted Payments referred to in clause  (e) above
shall be set at dates that permit the delivery of Financial Statements
necessary to determine current compliance with the Financial Covenants prior to
each such payment and (f) redemptions of Stock of Holdings and/or
dividends and distributions to the holders of the Stock of Holdings in an
aggregate amount not to exceed $25,000,000 per year and $100,000,000 during the
term of this Agreement, provided, that (i) no Default or Event of Default
has occurred and is continuing or would result after giving effect to any
Restricted Payment under clause (f) above and (ii) after
giving effect to such Restricted Payment under clause (f) above,
the Credit Facility Leverage Ratio as reflected in the Compliance Certificate
most recently delivered to Agent pursuant to Annex E prior to the
consummation of such Restricted Payment (after giving effect to such Restricted
Payment and all Loans funded in connection therewith as if made on the first
date of such period) was not greater than 2.25 to 1.00.

 

6.15         Change of Corporate Name or Location; Change of Fiscal
Year.  No Credit Party shall, or shall permit any
Subsidiary of any Credit Party to, (a) change its name, corporate name or
trade name as it appears in official filings in the state, province, county or
other jurisdiction of its existence, incorporation or other organization (b) change
its chief executive office, registered office pursuant to its constituent
documents, principal place of business, corporate offices or warehouses or
locations at which Collateral is held or stored, or the location of its records
concerning the Collateral, (c) change the type of entity that it is, (d) change
its organization identification number, if any, issued by its state of
incorporation or other organization, or (e) change its state, province,
county or other jurisdiction of existence, incorporation or organization, in
each case without at least 30 days prior written notice to Agent and after
Agent’s written acknowledgment that any reasonable action requested by Agent in
connection therewith, including to continue the perfection of any Liens in
favor of Agent in any Collateral, has been completed or taken, and provided
that any such new location shall be in the continental United States, except
that any Credit Party or any Subsidiary of any Credit Party may transfer
Collateral having value not exceeding $500,000 in the aggregate from any
warehouse or location at which such Collateral is held or stored to any
warehouse or location in Mexico.  Without
limiting the 

 

48

 

foregoing, no Credit
Party shall change its name, identity or corporate structure in any manner that
might make any financing, financing change or continuation statement or other
applicable perfection filing made in connection herewith or with any other Loan
Document seriously misleading within the meaning of Section 9-402(7) of
the Code or materially misleading within the meaning of any other applicable
law except upon prior written notice to Agent and Lenders and after Agent’s
written acknowledgment that any reasonable action requested by Agent in
connection therewith, including to continue the perfection of any Liens in
favor of Agent in any Collateral, has been completed or taken.  No Credit Party shall, or shall permit any
Subsidiary of any Credit Party to, change its Fiscal Year.

 

6.16         No Impairment of Intercompany Transfers. 
No Credit Party shall, or shall permit any Subsidiary of any Credit
Party to, directly or indirectly enter into or become bound by any agreement,
instrument, indenture or other obligation (other than this Agreement and the
other Loan Documents) that could directly or indirectly restrict, prohibit or
require the consent of any Person with respect to the payment of dividends or
distributions or the making or repayment of intercompany loans by a Subsidiary
of any Borrower to any Borrower or between Borrowers.

 

6.17         No Speculative Transactions. 
No Credit Party shall, or shall permit any Subsidiary of any Credit
Party to, engage in any transaction involving commodity options, futures
contracts or similar transactions, except solely to hedge against fluctuations
in the prices of commodities owned or purchased by it and the values of foreign
currencies receivable or payable by it and interest swaps, caps or collars.

 

6.18         Changes Relating to Subordinated Debt; Material
Contracts.  No Credit Party shall, or shall permit any
Subsidiary of any Credit Party to, change or amend the terms of any
Subordinated Debt (or any indenture or agreement in connection therewith) if
the effect of such amendment is to: (i) increase the interest rate on such
Subordinated Debt; (ii) change the dates upon which payments of principal
or interest are due on such Subordinated Debt other than to extend such dates; (iii) change
any default or event of default other than to delete or make less restrictive
any default provision therein, or add any covenant with respect to such
Subordinated Debt; (iv) change the redemption or prepayment provisions of
such Subordinated Debt other than to extend the dates therefor or to reduce the
premiums payable in connection therewith; (v) grant any security or
collateral to secure payment of such Subordinated Debt; (vi) change or
amend any subordination terms with respect thereto, including, without limitation,
with respect to the New Subordinated Debt Indenture, Article 10 and Section 11.02
thereof; or (vii) change or amend any other term if such change or
amendment would materially increase the obligations of the Credit Party or any
such Subsidiary thereunder or confer additional material rights on the holder
of such Subordinated Debt in a manner adverse to any Credit Party, Agent or any
Lender.

 

7.             TERM

 

7.1           Termination.  The financing
arrangements contemplated hereby shall be in effect until the Commitment
Termination Date, and the Loans and all other Obligations shall be
automatically due and payable in full on such date.

 

7.2           Survival of Obligations Upon Termination of Financing
Arrangements.  Except as otherwise expressly provided for in
the Loan Documents, no termination or cancellation 

 

49

 

(regardless of cause or
procedure) of any financing arrangement under this Agreement shall in any way
affect or impair the obligations, duties and liabilities of the Credit Parties
or the rights of Agent and Lenders relating to any unpaid portion of the Loans
or any other Obligations, due or not due, liquidated, contingent or
unliquidated, or any transaction or event occurring prior to such termination,
or any transaction or event, the performance of which is required after the
Commitment Termination Date.  Except as
otherwise expressly provided herein or in any other Loan Document, all
undertakings, agreements, covenants, warranties and representations of or
binding upon the Credit Parties, and all rights of Agent and each Lender, all
as contained in the Loan Documents, shall not terminate or expire, but rather
shall survive any such termination or cancellation and shall continue in full
force and effect until the Termination Date; provided, that the
provisions of Section 11, the payment obligations under Sections
1.15 and 1.16, and the indemnities contained in the Loan Documents
shall survive the Termination Date.

 

8.             EVENTS OF DEFAULT; RIGHTS AND REMEDIES

 

8.1           Events of Default.  The
occurrence of any one or more of the following events (regardless of the reason
therefor) shall constitute an “Event of Default” hereunder:

 

(a)           Any Borrower (i) fails to make any payment of
principal of, or interest on, or Fees owing in respect of, the Loans or any of
the other Obligations when due and payable, or (ii) fails to pay or
reimburse Agent or Lenders for any expense reimbursable hereunder or under any
other Loan Document within 10 days following Agent’s demand for such reimbursement
or payment of expenses.

 

(b)           Any Credit Party fails or neglects to perform, keep or
observe any of the provisions of Sections 1.4, 1.8, 5.4(a) or 6, or
any of the provisions set forth in Annexes C or G,  respectively.

 

(c)           Any Borrower fails or neglects to perform, keep or
observe any of the provisions of Section 4 or any provisions set
forth in Annexes E or F, respectively, and the same shall remain
unremedied for 5 Business Days or more.

 

(d)           Any Credit Party fails or neglects to perform, keep or
observe any other provision of this Agreement or of any of the other Loan
Documents (other than any provision embodied in or covered by any other clause
of this Section 8.1) and the same shall remain unremedied for 30
days or more from the date any Credit Party knew or should have known of such
failure or neglect.

 

(e)           A default or breach occurs under any other agreement,
document or instrument (including, without limitation, the New Subordinated
Debt Documents) to which any Credit Party is a party that is not cured within
any applicable grace period therefor, and such default or breach (A) involves
the failure to make any payment when due in respect of any Indebtedness or
Guaranteed Indebtedness (other than the Obligations) of any Credit Party in
excess of $5,000,000 in the aggregate (including (x) undrawn committed or
available amounts and (y) amounts owing to all creditors under any
combined or syndicated credit arrangements), or (B) causes, or permits any
holder of such Indebtedness or Guaranteed Indebtedness or a trustee to cause,
Indebtedness or Guaranteed Indebtedness or a portion thereof in excess of 

 

50

 

$5,000,000 in the
aggregate to become due prior to its stated maturity or prior to its regularly
scheduled dates of payment, or cash collateral in respect thereof to be
demanded, in each case, regardless of whether such default is waived, or such
right is exercised, by such holder or trustee.

 

(f)            Any representation or warranty herein or in any Loan
Document or in any written statement, report, financial statement or
certificate made or delivered to Agent or any Lender by any Credit Party is
untrue or incorrect in any material respect as of the date when made or deemed
made.

 

(g)           Assets of any Credit Party or any Foreign Subsidiary
with a fair market value of $5,000,000 or more are attached, seized, levied
upon or subjected to a writ or distress warrant, or come within the possession
of any receiver, interim receiver, receiver and manager, trustee, custodian, liquidator,
administrator, sheriff, bailiff or assignee for the benefit of creditors of any
Credit Party or any such Foreign Subsidiary and such condition continues for 30
days or more.

 

(h)           An involuntary case or proceeding (including the
filing of any notice of intention thereof) is commenced against any Credit
Party or any Foreign Subsidiary that is an operating company seeking a decree
or order in respect of such Credit Party or such Foreign Subsidiary (i) under
any Insolvency Law, or any other applicable federal, state or foreign
bankruptcy or other similar law or any incorporation law, (ii) appointing
a custodian, receiver, interim receiver, receiver and manager, custodian,
liquidator, assignee, trustee or sequestrator (or similar official) for such Credit
Party or such Foreign Subsidiary or for any substantial part of any such Credit
Party’s or such Foreign Subsidiary’s assets, or (iii) ordering the
winding-up, dissolution, suspension of general operations or liquidation of the
affairs of such Credit Party or such Foreign Subsidiary, and such case or
proceeding shall remain undismissed or unstayed for 60 days or more or a decree
or order granting the relief sought in such case or proceeding shall be entered
by a court of competent jurisdiction.

 

(i)            Any Credit Party or Foreign Subsidiary that is an
operating company (i) files a petition seeking relief under any Insolvency
Law, or any other applicable federal, state or foreign bankruptcy or other
similar law, (ii) consents to or fails to contest in a timely and
appropriate manner the institution of proceedings referred to in Section 8.1(h) thereunder
or the filing of any such petition or the appointment of or taking possession
by a custodian, receiver, liquidator, assignee, trustee or sequestrator (or
similar official) for such Credit Party or such Foreign Subsidiary or for any
substantial part of any such Credit Party’s or such Foreign Subsidiary’s
assets, (iii) makes an assignment for the benefit of creditors, (iv) takes
any action in furtherance of any of the foregoing or described under Section 8.1(h);
or (v) admits in writing its inability to, or is generally unable to, pay
its debts as such debts become due.

 

(j)            A final judgment or judgments for the payment of money
in excess of $5,000,000 in the aggregate at any time are outstanding against
one or more of the Credit Parties and the same are not, within 30 days after
the entry thereof, discharged or execution thereof stayed or bonded pending
appeal, or such judgments are not discharged prior to the expiration of any
such stay.

 

51

 

 

(k)           Any material provision of any Loan Document for any
reason ceases to be valid, binding and enforceable in accordance with its terms
(or any Credit Party or other Person party to a Loan Document shall challenge
the enforceability of any Loan Document or shall assert in writing, or engage
in any action or inaction based on any such assertion, that any provision of
any of the Loan Documents has ceased to be or otherwise is not valid, binding
and enforceable in accordance with its terms), or any Lien created under any
Loan Document ceases to be a valid and perfected first priority Lien (except as
otherwise permitted herein or therein) in any of the Collateral purported to be
covered thereby.

 

(l)            Any Change of Control occurs.

 

(m)          Any Material Adverse Effect occurs.

 

8.2           Remedies.

 

(a)           To the extent permitted under Section 1.5(e),
if any Event of Default has occurred and is continuing, Agent may (and at the
written request of Requisite Lenders shall), without notice except as otherwise
expressly provided herein, increase the rates of interest applicable to the
Loans and the Letter of Credit Fees to the Default Rate.

 

(b)           If any Event of Default has occurred and is
continuing, Agent may (and at the written request of the Requisite Lenders
shall) without notice: (i) terminate the Commitments to make additional
Advances or incur additional Letter of Credit Obligations (but Lenders may
cease funding advances under the Revolving Loan Commitment on any date that any
of the conditions precedent set forth in Section 2.2 are not
satisfied, whether or not Agent terminates any of the Commitments); (ii) declare
all or any portion of the Obligations, including all or any portion of any Loan
to be forthwith due and payable, and require that the Letter of Credit
Obligations be cash collateralized as provided in Annex B, all without
presentment, demand, protest or further notice of any kind, all of which are
expressly waived by Borrowers and each other Credit Party; or (iii) exercise
all rights and remedies under the Loan Documents, applicable laws of the United
States or any state thereof, including, without limitation, all remedies
provided under the Code and any other applicable law of any jurisdiction; provided,
that upon the occurrence of an Event of Default specified in Sections 8.1(h) or
(i), the Commitments to make additional Advances or incur additional Letter
of Credit Obligations shall be immediately terminated and all of the
Obligations, including the Loans, shall become immediately due and payable
without declaration, notice or demand by any Person.  Notwithstanding the foregoing, if any Event
of Default has occurred and is continuing, and if the Requisite Lenders shall
not have otherwise instructed Agent to deliver Activation Notices under Annex
C and to enforce Credit Parties’ covenants under Annex C, at the
request of Requisite Revolving Lenders, Agent shall, without notice, deliver
Activation Notices under Annex C and enforce Credit Parties’ covenants
under Annex C.

 

(c)           Intentionally Omitted.

 

8.3           Waivers by Credit Parties. 
Except as otherwise provided for in this Agreement, each Credit Party
waives, to the fullest extent permitted by law, (including for purposes of Section 12):
(a) presentment, demand and protest and notice of presentment, dishonor,
notice of 

 

52

 

intent to accelerate,
notice of acceleration, protest, default, nonpayment, maturity, release,
compromise, settlement, extension or renewal of any or all commercial paper,
accounts, contract rights, documents, instruments, chattel paper and guaranties
at any time held by Agent on which any Credit Party may in any way be liable,
and hereby ratifies and confirms whatever Agent may do in this regard, (b) all
rights to notice and a hearing prior to Agent’s taking possession or control
of, or to Agent’s replevy, attachment or levy upon, the Collateral or any bond
or security that might be required by any court prior to allowing Agent to
exercise any of its remedies, and (c) the benefit of all valuation, appraisal,
marshaling and exemption laws.  Each
Credit Party acknowledges that in the event such Credit Party fails to perform,
observe or discharge any of its obligations or liabilities under this Agreement
or any other Loan Document, any remedy of law may prove to be inadequate relief
to Agent and the Lenders; therefore, such Credit Party agrees, except as
otherwise provided in this Agreement or by applicable law, that Agent and the
Lenders shall be entitled to temporary and permanent injunctive relief in any such
case without the necessity of proving actual damages.

 

9.             ASSIGNMENT AND PARTICIPATIONS; APPOINTMENT OF AGENT

 

9.1           Assignments and Participations.

 

(a)           Intentionally Omitted.

 

(b)           Right to Assign.  Each Lender
may sell, transfer, negotiate or assign all or a portion of its rights and
obligations hereunder (including all or a portion of its Commitments and its
rights and obligations with respect to Loans and Letters of Credit) to (i) any
existing Lender, (ii) any Affiliate or Approved Fund of any existing
Lender or (iii) any other Person acceptable (which acceptance shall not be
unreasonably withheld or delayed) to Agent, and with respect to any assignment
of the Revolving Loan or Revolving Loan Commitment, each L/C Issuer, and, as
long as no Event of Default is continuing, Borrowers; provided, however,
that (x) such sales do not have to be ratable between the Revolving Loan,
the Existing Term Loan and the Extending Term Loan but must be ratable among
the obligations owing to and owed by such Lender with respect to either the
Revolving Loan, the Existing Term Loan or the Extending Term Loan and (y) for
both the Revolving Loan, the Existing Term Loan and the Extending Term Loan,
the aggregate outstanding principal amount (determined as of the effective date
of the applicable Assignment Agreement) of the Loans, Commitments and Letter of
Credit Obligations subject to any such sale shall be in a minimum amount of
$1,000,000, unless such sale is made to an existing Lender or an Affiliate or
Approved Fund of any existing Lender, is of the assignor’s (together with its
Affiliates and Approved Funds) entire interest in the Revolving Loan facility
or the Term Loan B facility or is made with the prior consent of Borrowers and
Agent; provided, further, that such sales or assignments by Non-Funding Lenders
shall be subject to Agent’s prior written consent.

 

(c)           Procedure.  The parties
to each sale made in reliance on clause (b) above (other than those
described in clause (e) or (f) below) shall execute and
deliver to Agent an assignment agreement (an “Assignment Agreement”)
substantially in the form attached hereto as Exhibit 9.1(c) and
otherwise in form and substance reasonably satisfactory to, and acknowledged
by, Agent, via an electronic settlement system designated by Agent (or if
previously agreed with Agent, via a manual execution and delivery of the
assignment) evidencing such sale, together 

 

53

 

with any existing Note
subject to such sale (or any affidavit of loss therefor acceptable to Agent),
any tax forms required to be delivered pursuant to Section 1.15 and
payment of an assignment fee in the amount of $3,500, provided that (1) if
a sale by a Lender is made to an Affiliate or an Approved Fund of such
assigning Lender, then no assignment fee shall be due in connection with such
sale, and (2) if a sale by a Lender is made to an assignee that is not an
Affiliate or Approved Fund of such assignor Lender, and concurrently to one or
more Affiliates or Approved Funds of such assignee, then only one assignment
fee of $3,500 shall be due in connection with such sale.  Upon receipt of all the foregoing, and
conditioned upon such receipt and, if such assignment is made in accordance
with Section 9.1(b)(iii), upon Agent (and Borrowers, if applicable)
consenting to such Assignment Agreement, such assignment will be effective from
and after the effective date specified in such Assignment Agreement.

 

(d)           Effectiveness.  (i) The
assignee under the Assignment Agreement shall become a party hereto and, to the
extent that rights and obligations under the Loan Documents have been assigned
to such assignee pursuant to such Assignment Agreement, shall have the rights
and obligations of a Lender, (ii) any applicable Note shall be transferred
to such assignee through such entry and (iii) the assignor thereunder
shall, to the extent that rights and obligations under this Agreement have been
assigned by it pursuant to such Assignment Agreement, relinquish its rights
(except for those surviving the termination of the Commitments and the payment
in full of the Obligations) and be released from its obligations under the Loan
Documents, other than those relating to events or circumstances occurring prior
to such assignment (and, in the case of an Assignment Agreement covering all or
the remaining portion of an assigning Lender’s rights and obligations under the
Loan Documents, such Lender shall cease to be a party hereto except that each
Lender agrees to remain bound by Article 9).

 

(e)           Grant of Security Interests. 
In addition to the other rights provided in this Section 9.1,
each Lender may grant a security interest in, or otherwise assign as
collateral, any of its rights under this Agreement, whether now owned or
hereafter acquired (including rights to payments of principal or interest on
the Loans), to (A) any federal reserve bank (pursuant to Regulation A of
the Federal Reserve Board), without notice to Agent or (B) any holder of,
or trustee for the benefit of the holders of, such Lender’s Securities by
notice to Agent; provided, however, that no such holder or
trustee, whether because of such grant or assignment or any foreclosure thereon
(unless such foreclosure is made through an assignment in accordance with clause
(b) above), shall be entitled to any rights of such Lender hereunder
and no such Lender shall be relieved of any of its obligations hereunder.

 

(f)            Participants and SPVs.  In addition
to the other rights provided in this Section 9.1, each Lender may, (x) with
notice to Agent, grant to an SPV the option to make all or any part of any Loan
that such Lender would otherwise be required to make hereunder (and the
exercise of such option by such SPV and the making of Loans pursuant thereto
shall satisfy the obligation of such Lender to make such Loans hereunder) and
such SPV may assign to such Lender the right to receive payment with respect to
any Obligation and (y) without notice to or consent from Agent or
Borrowers, sell participations to one or more Persons in or to all or a portion
of its rights and obligations under the Loan Documents (including all its
rights and obligations with respect to the Existing Term Loan, the Extending
Term Loan, the Revolving Loans and the Letters of Credit); provided, however,
that, whether as a result of any term of any Loan Document or of such grant or
participation, (i) no such SPV or participant shall have a 

 

54

 

commitment, or be deemed
to have made an offer to commit, to make Loans hereunder, and, except as
provided in the applicable option agreement, none shall be liable for any
obligation of such Lender hereunder, (ii) such Lender’s rights and
obligations, and the rights and obligations of the Credit Parties and the other
Lenders towards such Lender, under any Loan Document shall remain unchanged and
each other party hereto shall continue to deal solely with such Lender, which
shall remain the holder of the Obligations, except that (A) each such
participant and SPV shall be entitled to the benefit of Sections 1.15
and 1.16, but only to the extent such participant or SPV delivers the
tax forms such Lender is required to collect pursuant to Section 1.15
and then only to the extent of any amount to which such Lender would be
entitled in the absence of any such grant or participation and (B) each
such SPV may receive other payments that would otherwise be made to such Lender
with respect to Loans funded by such SPV to the extent provided in the
applicable option agreement and set forth in a notice provided to Agent by such
SPV and such Lender, provided, however, that in no case
(including pursuant to clause (A) or (B) above) shall
an SPV or participant have the right to enforce any of the terms of any Loan
Document, and (iii) the consent of such SPV or participant shall not be
required (either directly, as a restraint on such Lender’s ability to consent
hereunder or otherwise) for any amendments, waivers or consents with respect to
any Loan Document or to exercise or refrain from exercising any powers or
rights such Lender may have under or in respect of the Loan Documents
(including the right to enforce or direct enforcement of the Obligations),
except for those described in clauses (iii) and (iv) of
Section 11.2 with respect to amounts, or dates fixed for payment of
amounts, to which such participant or SPV would otherwise be entitled and, in
the case of participants, except for those described in Section 11.2(c)(viii) (or
amendments, consents and waivers with respect to Section 11.2(c)(v) to
release all or substantially all of the Collateral).  No party hereto shall institute (and each
Borrower shall cause each other Credit Party not to institute) against any SPV
grantee of an option pursuant to this clause (f) any bankruptcy,
reorganization, insolvency, liquidation or similar proceeding, prior to the
date that is one year and one day after the payment in full of all outstanding
commercial paper of such SPV; provided, however, that each Lender having
designated an SPV as such agrees to indemnify each Indemnitee against any
Liability that may be incurred by, or asserted against, such Indemnitee as a
result of failing to institute such proceeding (including a failure to get
reimbursed by such SPV for any such Liability). 
The agreement in the preceding sentence shall survive the termination of
the Commitments and the payment in full of the Obligations.

 

(g)           Agent shall maintain, acting solely in its capacity as
agent for Borrowers, a copy of each Assignment Agreement delivered to them and
a register for the recordation of the name and address and the Commitments of
each Lender from time to time party hereto (the “Register”).  The entries in the Register shall be
conclusive, and Borrowers, Agent and 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.  Upon
acceptance by Agent of a properly completed and executed Assignment Agreement
in respect of any interest under this Agreement which has at any time been
recorded in the Register, Agent shall record the name, address and percentage
share of the assignee in the Register. 
No assignment shall be effective unless and until it has been recorded
in the Register.

 

(h)           Nothing contained in this Section 9.1
shall require the consent of any party for GE Capital to assign any of its
rights in respect of any Swap Related Reimbursement Obligation.

 

55

 

9.2           Appointment of Agent.  GE Capital is
hereby appointed to act on behalf of all Lenders with respect to the
administration of Loans made to Borrowers and to act as agent on behalf of all
Lenders with respect to Collateral of Credit Parties under this Agreement and
the other Loan Documents.  The provisions
of this Section 9.2 are solely for the benefit of Agent and Lenders
and no Credit Party nor any other Person shall have any rights as a third party
beneficiary of any of the provisions hereof. 
In performing its functions and duties under this Agreement and the
other Loan Documents, Agent shall act solely as an agent of Lenders and Agent
does not assume or shall not be deemed to have assumed any obligation toward or
relationship of agency or trust with or for any Credit Party or any other
Person.  Agent shall not have any duties
or responsibilities except for those expressly set forth in this Agreement and
the other Loan Documents.  The duties of
Agent shall be mechanical and administrative in nature and Agent shall not
have, or be deemed to have, by reason of this Agreement, any other Loan
Document or otherwise a fiduciary relationship in respect of any Lender.  Except as expressly set forth in this
Agreement and the other Loan Documents, Agent shall not have any duty to
disclose, nor shall it be liable for failure to disclose, any information
relating to any Credit Party or any of their respective Subsidiaries or any
Account Debtor that is communicated to or obtained by GE Capital or any of its
Affiliates in any capacity.  None of
Agent or any of its Affiliates nor any of their respective officers, directors,
employees, agents or representatives shall be liable to any Lender for any
action taken or omitted to be taken by it hereunder or under any other Loan
Document, or in connection herewith or therewith, except for damages caused by
its or their own gross negligence or willful misconduct.

 

If
Agent shall request instructions from Requisite Lenders, Requisite Revolving
Lenders or all affected Lenders with respect to any act or action (including
failure to act) in connection with this Agreement or any other Loan Document,
then Agent shall be entitled to refrain from such act or taking such action
unless and until Agent shall have received instructions from Requisite Lenders,
Requisite Revolving Lenders or all affected Lenders, as the case may be, and
Agent shall not incur liability to any Person by reason of so refraining.  Agent shall be fully justified in failing or
refusing to take any action hereunder or under any other Loan Document (a) if
such action would, in the opinion of Agent be contrary to law or the terms of
this Agreement or any other Loan Document, (b) if such action would, in
the opinion of Agent expose Agent to Environmental Liabilities or (c) if
Agent shall not first be indemnified to its satisfaction against any and all
liability and expense which may be incurred by it by reason of taking or
continuing to take any such action. 
Without limiting the foregoing, no Lender shall have any right of action
whatsoever against Agent as a result of Agent acting or refraining from acting
hereunder or under any other Loan Document in accordance with the instructions
of Requisite Lenders, Requisite Revolving Lenders or all affected Lenders, as
applicable.

 

9.3           Agent’s Reliance, Etc.  None of Agent
or any of its Affiliates nor any of their respective directors, officers,
agents or employees shall be liable for any action taken or omitted to be taken
by it or them under or in connection with this Agreement or the other Loan
Documents, except for damages caused by its or their own gross negligence or
willful misconduct.  Without limiting the
generality of the foregoing, Agent:  (a) may
treat the payee of any Note as the holder thereof until Agent receives written
notice of the assignment or transfer thereof signed by such payee and in form
reasonably satisfactory to Agent; (b) may consult with legal counsel,
independent public accountants and other experts selected by it and shall not
be liable for any action taken or omitted to be taken by it in good faith in
accordance with the 

 

56

 

advice of such counsel,
accountants or experts; (c) makes no warranty or representation to any
Lender and shall not be responsible to any Lender for any statements,
warranties or representations made in or in connection with this Agreement or
the other Loan Documents; (d) shall not have any duty to ascertain or to
inquire as to the performance or observance of any of the terms, covenants or
conditions of this Agreement or the other Loan Documents on the part of any Credit
Party or to inspect the Collateral (including the books and records) of any
Credit Party; (e) shall not be responsible to any Lender for the due
execution, legality, validity, enforceability, genuineness, sufficiency or
value of this Agreement or the other Loan Documents or any other instrument or
document furnished pursuant hereto or thereto; (f) shall incur no
liability under or in respect of this Agreement or the other Loan Documents by
acting upon any notice, consent, certificate or other instrument or writing
(which may be by telecopy, telegram, cable or telex) believed by it to be
genuine and signed or sent by the proper party or parties; and (g) shall
be entitled to delegate any of its duties hereunder to one or more sub-agents.

 

Except
for action requiring the approval of Requisite Lenders or all Lenders, as the
case may be, Agent shall each be entitled to use its discretion with respect to
exercising or refraining from exercising any rights which may be vested in it
by, and with respect to taking or refraining from taking any action or actions
which it may be able to take under or in respect of, this Agreement, unless
Agent shall have been instructed by Requisite Lenders or all Lenders, as the
case may be, to exercise or refrain from exercising such rights or to take or
refrain from taking such action.  Agent
shall not incur any liability to the Lenders under or in respect of this
Agreement with respect to anything which it may do or refrain from doing in the
reasonable exercise of its judgment or which may seem to it to be necessary or
desirable in the circumstances, except for its own gross negligence or willful
misconduct.  Agent shall not be liable to
any Lender in acting or refraining from acting under this Agreement in
accordance with the instructions of Requisite Lenders or all Lenders, as the
case may be, and any action taken or failure to act pursuant to such
instructions shall be binding on all Lenders.

 

9.4           GE Capital and Affiliates. 
With respect to its Commitments hereunder, GE Capital shall have
the same rights and powers under this Agreement and the other Loan Documents as
any other Lender and may exercise the same as though it were not Agent; and the
term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include
GE Capital in its individual capacity. 
GE Capital and its Affiliates may lend money to, invest in, and
generally engage in any kind of business with, any Credit Party, any of their
Affiliates and any Person who may do business with or own securities of any Credit
Party or any such Affiliate, all as if GE Capital were not Agent and without
any duty to account therefor to Lenders. 
GE Capital and its Affiliates may accept fees and other consideration
from any Credit Party for services in connection with this Agreement or
otherwise without having to account for the same to Lenders.  Each Lender acknowledges the potential
conflict of interest between GE Capital, as a Lender, holding disproportionate
interests in the Loans and GE Capital as Agent.

 

9.5           Lender Credit Decision.  Each Lender
acknowledges that it has, independently and without reliance upon Agent or any
other Lender and based on the Financial Statements referred to in Section 3.4(a) and
such other documents and information as it has deemed appropriate, made its own
credit and financial analysis of the Credit Parties and its own decision to
enter into this Agreement.  Each Lender
also acknowledges that it will, independently and without reliance upon Agent
or any other Lender and based on such documents and information 

 

57

 

as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement. 
Each Lender acknowledges the potential conflict of interest of each
other Lender as a result of Lenders holding disproportionate interests in the
Loans, and expressly consents to, and waives any claim based upon, such
conflict of interest.

 

9.6           Indemnification.  Lenders agree
to indemnify Agent (to the extent not reimbursed by Credit Parties and without
limiting the obligations of Borrowers hereunder), ratably according to their
respective commitments, from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever that may be imposed on, incurred
by, or asserted against Agent in any way relating to or arising out of this
Agreement or any other Loan Document or any action taken or omitted to be taken
by Agent in connection therewith; provided, that no Lender shall be
liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from Agent’s gross negligence or willful misconduct. Without limiting
the foregoing, each Lender agrees to reimburse Agent promptly upon demand for
its ratable share of any out-of-pocket expenses (including reasonable counsel
fees) incurred by Agent in connection with the preparation, execution,
delivery, administration, modification, amendment or enforcement (whether
through negotiations, legal proceedings or otherwise) of, or legal advice in
respect of rights or responsibilities under, this Agreement and each other Loan
Document, to the extent that Agent is not reimbursed for such expenses by
Credit Parties.

 

9.7           Successor Agent.  Agent may
resign at any time by giving not less than thirty (30) days’ prior written
notice thereof to Lenders and Borrower Representative and, at any time that GE
Capital is no longer a holder of any Loans or Commitments, Requisite Lenders
may remove Agent at any time by giving not less than 30 days’ prior written
notice thereof to Agent, Lenders and Borrower Representative.  Upon any such resignation or removal,
Requisite Lenders shall have the right to appoint a successor Agent.  If no successor Agent shall have been so
appointed by the Requisite Lenders and shall have accepted such appointment
within thirty (30) days after the resigning Agent’s giving notice of
resignation or Requisite Lenders’ giving notice of removal, then the resigning
or removed Agent may, on behalf of Lenders, appoint a successor Agent, which
shall be a Lender, if a Lender is willing to accept such appointment, or
otherwise shall be a commercial bank or financial institution or a subsidiary
of a commercial bank or financial institution if such commercial bank or
financial institution is organized under the laws of the United States of
America or of any State thereof and has a combined capital and surplus of at
least $300,000,000.  If no successor
Agent has been appointed pursuant to the foregoing, within thirty (30) days
after the date such notice of resignation was given by the resigning Agent or Requisite
Lenders’ giving notice of removal, such resignation shall become effective and
the Requisite Lenders shall thereafter perform all the duties of Agent
hereunder until such time, if any, as the Requisite Lenders appoint a successor
Agent as provided above.  Any successor
Agent appointed by Requisite Lenders hereunder shall be subject to the approval
of Borrower Representative, such approval not to be unreasonably withheld or
delayed; provided that such approval shall not be required if a Default
or an Event of Default has occurred and is continuing.  Upon the acceptance of any appointment as
Agent hereunder by a successor Agent, such successor Agent shall succeed to and
become vested with all the rights, powers, privileges and duties of the
resigning or removed Agent.  Upon the
earlier of the acceptance of any appointment as Agent hereunder by a successor
Agent or the effective date of the resigning Agent’s resignation or the removed
Agent’s removal, the resigning or removed Agent shall be discharged 

 

58

 

from its duties and
obligations under this Agreement and the other Loan Documents, except that any
indemnity rights or other rights in favor of such Agent shall continue.  After any Agent’s resignation hereunder, the
provisions of this Section 9 shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was acting as Agent under
this Agreement and the other Loan Documents.

 

9.8           Setoff and Sharing of Payments. 
In addition to any rights now or hereafter granted under applicable law
and not by way of limitation of any such rights, upon the occurrence and during
the continuance of any Event of Default and subject to Section 9.9(f),
each Lender is hereby authorized at any time or from time to time, without
notice to any Credit Party or to any other Person, any such notice being hereby
expressly waived, to offset and to appropriate and to apply any and all
balances held by it at any of its offices for the account of Borrowers or
Guarantors (regardless of whether such balances are then due to Borrowers or
Guarantors) and any other properties or assets at any time held or owing by
that Lender or that holder to or for the credit or for the account of Borrowers
or Guarantors against and on account of any of the Obligations that are not
paid when due.  Any Lender exercising a
right of setoff or otherwise receiving any payment on account of the
Obligations shall purchase for cash (and the other Lenders or holders shall
sell) such participations in each such other Lender’s or holder’s Obligations
as would be necessary to cause such Lender to share the amount so offset or
otherwise received with each other Lender or holder in accordance with any
agreement among the Lenders (other than offset rights exercised by any Lender
with respect to Sections 1.13, 1.15 or 1.16).  Each Lender’s obligation under this Section 9.8
shall be in addition to and not in limitation of its obligations to purchase a
participation in an amount equal to its Pro Rata Share of the Swing Line Loans
under Section 1.1.  Each
Credit Party that is a Borrower or Guarantor agrees, to the fullest extent
permitted by law, that (a) any Lender may exercise its right to offset
with respect to amounts in excess of the Obligations owed to it and may sell
participations in such amounts so offset to other Lenders and holders and (b) any
Lender so purchasing a participation in the Loans made or other Obligations
held by other Lenders or holders may exercise all rights of offset, bankers’
lien, counterclaim or similar rights with respect to such participation as
fully as if such Lender or holder were a direct holder of the Loans and the
other Obligations in the amount of such participation.  Notwithstanding the foregoing, if all or any
portion of the offset amount or payment otherwise received is thereafter
recovered from the Lender that has exercised the right of offset, the purchase
of participations by that Lender shall be rescinded and the purchase price
restored without interest.  If a Non-Funding
Lender or Impacted Lender receives any such payment as described in this Section 9.8,
such Lender shall turn over such payments to Agent in an amount that would
satisfy the cash collateral requirements set forth in Section 9.9(a).

 

9.9           Advances; Payments; Non-Funding Lenders; Information;
Actions in Concert.

 

(a)           Advances; Payments.

 

(i)            Lenders with Revolving Loan Commitments shall refund
or participate in the Swing Line Loan in accordance with clauses (iii) and
(iv) of Section 1.1(c). 
If the Swing Line Lender declines to make a Swing Line Loan or if Swing
Line Availability is zero, Agent shall notify Lenders with Revolving Loan
Commitments, promptly after receipt of a Notice of Revolving Credit Advance and
in any event prior to 2:00 p.m. (New York time) on the 

 

59

 

date such Notice of
Revolving Advance is received, by telecopy, telephone or other similar form of
transmission.  Each Lender with Revolving
Loan Commitments shall make the amount of such Lender’s Pro Rata Share of such
Revolving Credit Advance available to Agent in same day funds by wire transfer
to Agent’s account as set forth in Annex H not later than 3:00 p.m.
(New York time) on the requested funding date, in the case of an Index Rate
Loan, and not later than 12:00 noon (New York time) on the requested funding
date, in the case of a LIBOR Loan.  After
receipt of such wire transfers (or, in Agent’s sole discretion, before receipt
of such wire transfers), subject to the terms hereof, Agent shall make the
requested Revolving Credit Advance to the Borrower designated by Borrower
Representative in the Notice of Revolving Credit Advance.  All payments by each Lender shall be made
without setoff, counterclaim or deduction of any kind.

 

(ii)           On the 2nd Business Day of each calendar week or more
frequently at Agent’s election (each, a “Settlement Date”), Agent shall
advise each Lender by telephone, or telecopy of the amount of such Lender’s Pro
Rata Share of principal, interest and Fees paid for the benefit of
Lenders.  Provided that each Lender has
funded all payments or Advances required to be made by it and has purchased all
participations required to be purchased by it under this Agreement and the
other Loan Documents as of such Settlement Date, Agent shall pay to each Lender
such Lender’s Pro Rata Share of principal, interest and Fees paid by Borrowers
since the previous Settlement Date for the benefit of such Lender on the Loans
held by it.  Agent shall be entitled to
set off the funding short-fall against any Non-Funding Lender’s Pro Rata Share
of all payments received from Borrowers and hold, in a non-interest bearing
account, all payments received by Agent for the benefit of any Non-Funding
Lender pursuant to this Agreement as cash collateral for any unfunded
reimbursement obligations of such Non-Funding Lender until the Obligations are
paid in full in cash, all Letter of Credit Obligations have been discharged or
cash collateralized and all Commitments have been terminated, and upon such
unfunded obligations owing by a Non-Funding Lender becoming due and payable,
Agent shall be authorized to use such cash collateral to make such payment on
behalf of such Non-Funding Lender.  Any
amounts owing by a Non-Funding Lender to Agent which are not paid when due
shall accrue interest at the interest rate applicable during such period to
Revolving Loans that are Index Rate Loans. 
Such payments shall be made by wire transfer to such Lender’s account
(as specified by such Lender in Annex H or the applicable Assignment
Agreement) not later than 2:00 p.m. (New York time) on the next Business
Day following each Settlement Date.

 

(b)           Availability of Lender’s Pro Rata Share. 
Agent may assume that each Lender will make its Pro Rata Share of each
Loan available to Agent on each funding date unless Agent has received prior
written notice from such Lender that it does not intend to make its Pro Rata
Share of a Loan because all or any of the conditions set forth in Section 2.2
have not been satisfied.  If such Pro
Rata Share is not, in fact, paid to Agent by such Lender when due, Agent will
be entitled to recover such amount on demand from such Lender without setoff,
counterclaim or deduction of any kind. 
If any Lender fails to pay the amount of its Pro Rata Share forthwith
upon Agent’s demand, Agent shall promptly notify Borrower Representative and
Borrowers shall immediately repay such amount to Agent.  Nothing in this Section 9.9(b) or
elsewhere in this Agreement or the other Loan Documents shall be deemed to
require Agent to advance funds on behalf of any Lender or to relieve any Lender
from its obligation to fulfill its Commitments hereunder or to prejudice any
rights that Borrowers may have against any Lender 

 

60

 

as a result of any
default by such Lender hereunder.  Unless
Agent has received prior written notice from a Lender that it does not intend
to make its Pro Rata Share of each Loan available to Agent because all or any
of the conditions set forth in Section 2.2 have not been satisfied
to the extent that Agent advances funds to any Borrower on behalf of such
Lender and is not reimbursed therefor on the same Business Day as such Advance
is made, Agent shall, without limiting the provisions of Section 9.9(a)(ii),
be entitled to retain for its account all interest accrued on such Advance
until reimbursed by such Lender.

 

(c)           Return of Payments.

 

(i)            If Agent pays an amount to a Lender under this
Agreement in the belief or expectation that a related payment has been or will
be received by Agent from Borrowers and such related payment is not received by
Agent then Agent will be entitled to recover such amount from such Lender on
demand without setoff, counterclaim or deduction of any kind.

 

(ii)           If Agent determines at any time that any amount
received by Agent under this Agreement must be returned to any Borrower or paid
to any other Person pursuant to any insolvency law or otherwise, then,
notwithstanding any other term or condition of this Agreement or any other Loan
Document, Agent will not be required to distribute any portion thereof to any
Lender.  In addition, each Lender will
repay to Agent on demand any portion of such amount that Agent has distributed
to such Lender, together with interest at such rate, if any, as Agent is
required to pay to any Borrower or such other Person, without setoff,
counterclaim or deduction of any kind.

 

(d)           Non-Funding Lenders.  The failure
of any Non-Funding Lender to make any Advance, reimbursement of any Letter of
Credit Obligation or any payment required by it hereunder or to purchase any
participation in any Swing Line Loan to be made or purchased by it on the date
specified therefor shall not relieve any other Lender (each such other Lender,
an “Other Lender”) of its obligations to make such Advance or purchase
such participation on such date, but none of Agent or any Other Lender, other
than as expressly set forth herein shall be responsible for the failure of any
Non-Funding Lender to make an Advance, purchase a participation or make any
other payment required hereunder. 
Notwithstanding anything set forth herein to the contrary, a Non-Funding
Lender shall not have any voting or consent rights under or with respect to any
Loan Document or constitute a “Lender” or “Lender” (or be, or have its Loans
and Commitments, included in the determination of “Requisite Lenders”, “Requisite
Revolving Lenders” or “Lenders directly affected” in Section 11.2)
for any voting or consent rights under or with respect to any Loan
Document.  Moreover, for the purposes of
determining Requisite Lenders and Requisite Revolving Lenders, the Loans and
the Commitments held by any Non-Funding Lender shall be excluded from the total
Loans and Commitments outstanding. At Borrower Representative’s request, Agent
or a Person reasonably acceptable to Agent shall have the right with Agent’s
consent and in Agent’s sole discretion (but shall have no obligation) to
purchase from any Non-Funding Lender that is a Lender, and each such
Non-Funding Lender agrees that it shall, at Agent’s request, sell and assign to
Agent or such Person, all of the Commitments of that Non-Funding Lender for an
amount equal to the principal balance of all Loans held by such Non-Funding
Lender and all accrued interest and fees with respect thereto 

 

61

 

through the date of sale,
such purchase and sale to be consummated pursuant to an executed Assignment
Agreement.

 

(e)           Dissemination of Information. 
Agent shall use reasonable efforts to provide the Lenders with any
notice of Default or Event of Default received by it from, or delivered by it
to, any Credit Party, with notice of any Event of Default of which it has
actually become aware and with notice of any action taken by it following any
Event of Default; provided, that Agent shall not be liable to any Lender
for any failure to do so, except to the extent that such failure is
attributable to Agent’s gross negligence or willful misconduct.  Lenders acknowledge that Borrowers are
required to provide Financial Statements and Collateral Reports to Lenders in
accordance with Annexes E and F hereto and agree that Agent shall not
have any duty to provide the same to Lenders.

 

(f)            Actions in Concert.  Anything in
this Agreement to the contrary notwithstanding, each Lender hereby agrees with each
other Lender that no Lender shall take any action to protect or enforce its
rights arising out of this Agreement or the Notes (including exercising any
rights of setoff) without first obtaining the prior written consent of Agent
and Requisite Lenders, it being the intent of Lenders that any such action to
protect or enforce rights under this Agreement and the Notes shall be taken in
concert and at the direction or with the consent of Agent or Requisite Lenders;
provided, however, that (i) each Lender shall be entitled to file a proof
of claim in any proceeding under any Insolvency Law to the extent such Lender
disagrees with Agent’s composite proof of claim filed on behalf of all Lenders,
(ii) each Lender shall be entitled to vote its claim with respect to any
plan of reorganization in any proceeding under any Insolvency Law and (iii) each
Lender shall be entitled to pursue its deficiency claim after liquidation of
all or substantially all of the Collateral and application of the proceeds
therefrom.

 

9.10         Collateral Matters.

 

(a)           Lenders hereby irrevocably authorize Agent, at its
option and in its sole discretion, to release any Liens upon any Collateral (i) upon
the termination of the Commitments and payment and satisfaction in full by
Borrowers of all Loans and reimbursement obligations in respect of Letters of
Credit, and the termination of all outstanding Letters of Credit (whether or
not any of such obligations are due) and all other Obligations; (ii) constituting
property being sold or disposed of if Borrowers certify to Agent that the sale
or disposition is made in compliance with Section 6.8 (and Agent
may rely conclusively on any such certificate, without further inquiry); (iii) constituting
property in which Credit Parties owned no interest at the time the Lien was
granted or at any time thereafter; or (iv) constituting property leased to
Credit Parties under a lease which has expired or been terminated in a
transaction permitted under this Agreement. 
Except as provided above, Agent will not release any of its Liens
without the prior written authorization of the Lenders; provided that Agent may
(so long as (x) no Default or Event of Default has occurred and is
continuing, or would result therefrom and (y) Credit Parties have provided
evidence to Agent (in form and substance satisfactory to Agent) that EBITDA of
Holdings and its Subsidiaries on a consolidated basis for the most recently
ended four fiscal quarters, exclusive of the amount of such EBITDA which is
attributable to the assets of Credit Parties so released from the Collateral,
would not be less than $85,000,000), in its discretion, release its Liens on
Collateral valued in the aggregate for all such releases from and after the

 

62

 

Closing Date not in excess of $2,500,000 during each Fiscal Year
without the prior written authorization of any Lenders and Agent may (so long
as (x) no Default or Event of Default has occurred and is continuing, or
would result therefrom and (y) Credit Parties have provided evidence to
Agent (in form and substance satisfactory to Agent) that EBITDA of Holdings and
its Subsidiaries on a consolidated basis for the most recently ended four
fiscal quarters, exclusive of the amount of such EBITDA which is attributable
to the assets of Credit Parties so released from the Collateral, would not be
less than $85,000,000) release to release, its Liens on Collateral valued in
the aggregate for all such releases from and after the Closing Date greater
than $2,500,000 but not in excess of 10% of the aggregate Commitments as of the
Closing Date with the prior written authorization of Requisite Lenders.  Upon request by Agent or Borrowers at any
time, Lenders will confirm in writing Agent’s authority to release any Liens upon
particular types or items of Collateral pursuant to this Section 9.10.

 

(b)           Upon receipt by Agent of any authorization required
pursuant to Section 9.10 from Lenders of Agent’s authority to
release any Liens upon particular types or items of Collateral, and upon
at least five Business Days’ prior written request by Borrowers, Agent shall
(and is hereby irrevocably authorized by Lenders to) execute such documents as
may be necessary to evidence the release of its Liens upon such Collateral; provided,
however, that (i) Agent shall not be required to execute any such
document on terms which, in Agent’s opinion, would expose Agent to liability or
create any obligation or entail any consequence other than the release of such
Liens without recourse or warranty, and (ii) such release shall not in any
manner discharge, affect or impair the Obligations or any Liens (other than
those expressly being released) upon (or obligations of Credit Parties in
respect of) all interests retained by Credit Parties, including the proceeds of
any sale, all of which shall continue to constitute part of the Collateral.

 

9.11         Additional Agents.  None of the
Lenders or other entities identified on the facing page of this Agreement
as an “arranger” or “syndication agent” shall have any right, power,
obligation, liability, responsibility or duty under this Agreement or any other
Loan Document other than those applicable to all Lenders as such.  Without limiting the foregoing, none of the
Lenders so identified shall have or be deemed to have any fiduciary
relationship with any other Lender.  Each
Lender acknowledges that it has not relied, and will not rely, on any of the
Lenders or other entities so identified in deciding to enter into this Agreement
or any other Loan Document or in taking or not taking action hereunder or
thereunder.

 

9.12         Distribution of Materials to
Lenders and L/C Issuers.

 

(a)           Each Borrower
acknowledges and agrees that the Loan Documents and all reports, notices,
communications and other information or materials provided or delivered by, or
on behalf of, the Borrowers hereunder (collectively, the “Borrower Materials”)
may be disseminated by, or on behalf of, Agent, and made available, to the
Lenders and the L/C Issuers by posting such Borrower Materials on Intralinks®
or a similar E-System (the “Borrower Workspace”).  Each Borrower authorizes Agent to download
copies of its logos from its website and post copies thereof on the Borrower
Workspace.

 

(b)           Each Borrower
hereby agrees that if either it or Holdings or any Subsidiary of Holdings has
publicly traded equity or debt securities in the United States of 

 

63

 

America
(U.S.), it shall (and shall cause any such Person, as the case may be, to) (i) identify
in writing, and (ii) to the extent reasonably practicable, clearly and
conspicuously mark such Borrower Materials that do not contain any information
that is (x) not publicly available with respect to the Borrowers (or
Holdings or any Subsidiary of Holdings, as the case may be) and (y) is
material with respect to the Borrowers (or Holdings or any Subsidiary of
Holdings, as the case may be) or their securities for purposes of U.S. federal
and state securities laws as “PUBLIC”. 
Each Borrower agrees that by identifying such Borrower Materials
pursuant to clause (i) of the preceding sentence and/or marking the
Borrower Materials as “PUBLIC” pursuant to clause (ii) of the preceding
sentence and/or publicly filing such Borrower Materials with the Securities and
Exchange Commission, then Agent, the Lenders and the L/C Issuers shall be
entitled to treat such Borrower Materials as not containing any material
non-public information (“MNPI”) with respect to the Borrowers (or
Holdings or any Subsidiary of Holdings, as the case may be) for purposes of
U.S. federal and state securities laws. 
Each Borrower further represent, warrant, acknowledges and agrees that
the following documents and materials shall be deemed to be PUBLIC, whether or
not so marked, and do not contain any MNPI: (A) the Loan Documents,
including the schedules and exhibits attached thereto, and (B) administrative
materials of a customary nature prepared by the Borrowers or Agent (including,
notice of borrowings or conversions, L/C and swingline requests).  Before distribution of any Borrower Materials
to prospective Lenders and at the request of Agent, each Borrower agrees (and
agrees to cause Holdings or any Subsidiary of Holdings, as the case may be) to
execute and deliver to Agent a letter in which you authorize distribution of
the evaluation materials to prospective Lenders and their employees willing to
receive material non-public information, and a separate letter in which you
authorize distribution of evaluation material that does not contain material
non-public information and represent that no material non-public information is
contained therein.

 

(c)           Each Lender and L/C
Issuer represents, warrants, acknowledges and agrees that (i) the Borrower
Materials may contain MNPI concerning the Borrowers, their Affiliates or their
securities, (ii) it has developed compliance policies and procedures
regarding the handling and use of MNPI, and (iii) it shall use any such
Borrower Materials in accordance with Section 11.8 and any
applicable laws and regulations, including federal and state securities laws
and regulations.

 

(d)           If any Lender or L/C Issuer has elected
to abstain from receiving MNPI concerning the Borrowers, their Affiliates or
their securities, such Lender or L/C Issuer acknowledges that, notwithstanding
such election, Agent and/or the Borrowers will, from time to time, make
available syndicate-information (which may contain MNPI) as required by the
terms of, or in the course of administering, the credit facilities, including
this Agreement and the other Loan Documents, to the credit contact(s) identified
for receipt of such information on the Lender’s administrative questionnaire
who are able to receive and use all syndicate-level information (which may
contain MNPI) in accordance with such Lender’s compliance policies and
contractual obligations and applicable law, including federal and state
securities laws; provided that if such contact is not so identified in such
questionnaire, the relevant Lender or L/C Issuer hereby agrees to promptly (and
in any even within one Business Day) provide such a contact to Agent and the
Borrowers upon oral or written request therefor by Agent or Borrowers.  Notwithstanding such Lender’s or L/C Issuer’s
election to abstain from receiving MNPI, such Lender or L/C Issuer acknowledges
that if such Lender or L/C Issuer chooses to communicate 

 

64

 

with Agent, it assumes
the risk of receiving MNPI concerning the Borrowers, their Affiliates or their
securities.

 

10.           SUCCESSORS AND ASSIGNS

 

10.1         Successors and Assigns.  This
Agreement and the other Loan Documents shall be binding on and shall inure to
the benefit of each Credit Party, Agent, Lenders and their respective
successors and assigns (including, in the case of any Credit Party, a
debtor-in-possession on behalf of such Credit Party), except as otherwise
provided herein or therein.  No Credit
Party may assign, transfer, hypothecate or otherwise convey its rights,
benefits, obligations or duties hereunder or under any of the other Loan
Documents without the prior express written consent of Agent and Lenders.  Any such purported assignment, transfer,
hypothecation or other conveyance by any Credit Party without the prior express
written consent of Agent and Lenders shall be void.  The terms and provisions of this Agreement
are for the purpose of defining the relative rights and obligations of each
Credit Party, Agent and Lenders with respect to the transactions contemplated
hereby and no Person shall be a third party beneficiary of any of the terms and
provisions of this Agreement or any of the other Loan Documents.

 

11.           MISCELLANEOUS

 

11.1         Complete Agreement; Modification of Agreement. 
The Loan Documents constitute the complete agreement between the parties
with respect to the subject matter thereof and may not be modified, altered or
amended except as set forth in Section 11.2.  Any letter of interest, commitment letter or
fee letter (other than the GE Capital Fee Letter) or confidentiality agreement,
if any, between any Credit Party and Agent or any Lender or any of their
respective Affiliates, predating this Agreement and relating to a financing of
substantially similar form, purpose or effect shall be superseded by this
Agreement.

 

11.2         Amendments and Waivers.

 

(a)           Except for actions expressly permitted to be taken by
Agent, no amendment, modification, termination or waiver of any provision of
this Agreement or any other Loan Document, or any consent to any departure by
any Credit Party therefrom, shall in any event be effective unless the same
shall be in writing and signed by Borrowers and by Requisite Lenders, Requisite
Revolving Lenders or all affected Lenders, as applicable, and delivered to
Agent.  Except as set forth in clause (c) below,
all such amendments, modifications, terminations or waivers requiring the
consent of any Lenders shall require the written consent of Requisite Lenders.

 

(b)           Intentionally Omitted.

 

(c)           No amendment, modification, termination or waiver
shall, unless in writing and signed by each Lender and Borrowers affected
thereby and delivered to Agent: (i) increase the principal amount of any
Lender’s Commitment; (ii) reduce the principal of, rate of interest on,
composition of interest on (i.e. cash pay or payment-in-kind) or Fees payable
with respect to any Loan or Letter of Credit Obligations of any affected
Lender; (iii) extend any scheduled payment date (other than payment dates
of mandatory prepayments under Section 1.3(b)(ii)-(iv)) or final
maturity date of the principal amount of any Loan of any Lender; (iv) 

 

65

 

waive, forgive, defer,
extend or postpone any payment of interest or Fees as to any Lender; (v) release
any Credit Party or Guaranty or, except as otherwise permitted herein or in the
other Loan Documents, release or subordinate the Lien of Agent in, any
Collateral with an aggregate value for all such releases and subordinations
from and after the Closing Date exceeding 10% of the aggregate Commitments as
of the Closing Date; (vi) change the percentage of the Commitments or of
the aggregate unpaid principal amount of the Loans that shall be required for
Lenders or any of them to take any action hereunder; (vii) amend or waive Section 9.10;
or (viii) amend or waive this Section 11.2 or the definitions
of the terms “Commitment Termination Date”, “Obligations”, “Requisite Lenders”
or “Requisite Revolving Lenders” insofar as such definitions affect the
substance of this Section 11.2. 
Furthermore, no amendment, modification, termination or waiver affecting
the rights or duties of Agent or L/C Issuer, or of GE Capital in respect of any
Swap Related Reimbursement Obligations, under this Agreement or any other Loan
Document, including any release of any Guaranty or Collateral requiring a
writing signed by all Lenders, shall be effective unless in writing and signed
by Agent or L/C Issuer or GE Capital, as the case may be, in addition to
Lenders required hereinabove to take such action.  No amendment, modification, termination or
waiver shall be required for Agent to take additional Collateral pursuant to
any Loan Document.  No amendment,
modification, termination or waiver of any provision of any Note shall be
effective without the written concurrence of the holder of that Note.  No notice to or demand on any Credit Party in
any case shall entitle such Credit Party or any other Credit Party to any other
or further notice or demand in similar or other circumstances.  Any amendment, modification, termination,
waiver or consent effected in accordance with this Section 11.2
shall be binding upon each holder of the Obligations at the time outstanding
and each future holder of the Obligations.

 

(d)           If, in connection with any proposed amendment,
modification, waiver or termination requiring the consent of all affected Lenders,
the consent of any Lender or Lenders whose consent is required is not obtained
(any such Lender whose consent is not obtained being referred to as a “Non-Consenting
Lender”) then, so long as Agent is not a Non-Consenting Lender, at Borrower
Representative’s request, Agent or another Person reasonably acceptable to
Agent and Borrower Representative (and, with respect to any Person replacing a
Revolving Lender, reasonably acceptable to each L/C Issuer) shall have the
right with Agent’s consent and in Agent’s sole discretion (but shall have no
obligation) to purchase from such Non-Consenting Lenders, and such
Non-Consenting Lenders agree that they shall, upon Agent’s request, sell and
assign to Agent or another Person reasonably acceptable to Agent and Borrower
Representative (and, with respect to any Person replacing a Revolving Lender,
reasonably acceptable to each L/C Issuer), all of the Commitments of such
Non-Consenting Lenders for an amount equal to the principal balance of all
Loans held by the Non-Consenting Lenders and all accrued interest and Fees with
respect thereto through the date of sale, such purchase and sale to be
consummated pursuant to an executed Assignment Agreement.

 

(e)           Upon all Letter of Credit Obligations being cash
collateralized, canceled or backed by standby letters of credit in accordance
with Annex B, the payment in full in cash and performance of all of the
other Obligations (other than indemnification Obligations), termination of the
Commitments and a release of all claims against Agent and Lenders, and so long
as no suits, actions, proceedings or claims are pending or threatened against
any Indemnified Person asserting any damages, losses or liabilities that are
Indemnified Liabilities, Agent shall deliver to Borrowers termination
statements, mortgage releases and other documents 

 

66

 

necessary or appropriate
to evidence the termination of the Liens securing payment of the Obligations.

 

11.3         Fees and Expenses.  Borrowers
shall reimburse (i) Agent for all fees, costs and expenses (including the
reasonable fees and expenses of all of its counsel, advisors, consultants and
auditors) and (ii) Agent (and, with respect to clauses (c), (d) and
(e) below, all Lenders) for all fees, costs and expenses, including the
reasonable fees, costs and expenses of counsel or other advisors (including
environmental and management consultants and appraisers), incurred in
connection with the negotiation and preparation of the Loan Documents and incurred
in connection with:

 

(a)           the forwarding to Borrowers or any other Person on
behalf of Borrowers by Agent of the proceeds of any Loan (including a wire
transfer fee of $25 per wire transfer);

 

(b)           any amendment, modification or waiver of, consent with
respect to, or termination of, any of the Loan Documents or Related
Transactions Documents or advice in connection with the syndication and
administration of the Loans made pursuant hereto or its rights hereunder or
thereunder;

 

(c)           any litigation, contest, dispute, suit, proceeding or
action (whether instituted by Agent, any Lender, any Borrower or any other
Person and whether as a party, witness or otherwise) in any way relating to the
Collateral, any of the Loan Documents or any other agreement to be executed or
delivered in connection herewith or therewith, including any litigation,
contest, dispute, suit, case, proceeding or action, and any appeal or review
thereof, in connection with a case commenced by or against any or all of the
Borrowers or any other Person that may be obligated to Agent by virtue of the
Loan Documents; including any such litigation, contest, dispute, suit,
proceeding or action arising in connection with any work-out or restructuring
of the Loans during the pendency of one or more Events of Default; provided
that in the case of reimbursement of counsel for Lenders other than Agent, such
reimbursement shall be limited to one counsel for Lenders; provided,
further, that no Person shall be entitled to reimbursement under clauses (c), (d) and
(e) in respect of any litigation, contest, dispute, suit, proceeding or
action to the extent any of the foregoing results from such Person’s gross
negligence or willful misconduct;

 

(d)           any attempt to enforce any remedies of Agent against
any or all of the Credit Parties or any other Person that may be obligated to
Agent or any Lender by virtue of any of the Loan Documents, including any such
attempt to enforce any such remedies in the course of any work-out or
restructuring of the Loans during the pendency of one or more Events of
Default; provided, that in the case of reimbursement of counsel for
Lenders other than Agent, such reimbursement shall be limited to one counsel
for Lenders;

 

(e)           any waiver, amendment, forbearance, workout or
restructuring of the Loans during the pendency of one or more Defaults or
Events of Default; provided, that in the case of reimbursement of
counsel for Lenders other than Agent, such reimbursement shall be limited to
one counsel for Lenders; and

 

67

 

(f)            efforts to (i) monitor the Loans or any of the
other Obligations, (ii) evaluate, observe or assess any of the Credit
Parties or their respective affairs, and (iii) verify, protect, evaluate,
assess, appraise, collect, sell, liquidate or otherwise dispose of any of the
Collateral;

 

including, as to each of clauses (a) through (f) above, all
reasonable attorneys’ and other professional and service providers’ fees
arising from such services and other advice, assistance or other
representation, including those in connection with any appellate proceedings,
and all expenses, costs, charges and other fees incurred by such counsel and
others in connection with or relating to any of the events or actions described
in this Section 11.3, all of which shall be payable, on demand, by
Borrowers to Agent.  Without limiting the
generality of the foregoing, such expenses, costs, charges and fees may
include: fees, costs and expenses of accountants, environmental advisors,
appraisers, investment bankers, management, financial, turnaround and other
consultants and paralegals; court costs and expenses; photocopying and
duplication expenses; court reporter fees, costs and expenses; long distance
telephone charges; air express charges; telegram or telecopy charges;
secretarial overtime charges; and expenses for travel, lodging and food paid or
incurred in connection with the performance of such legal or other advisory
services.

 

If at any time Lenders
are entitled to receive reimbursement from Borrowers of fees and expenses of
counsel for Lenders and Lenders are not able to mutually agree on what counsel
to engage to represent Lenders, Requisite Lenders shall be entitled to select
counsel to represent Lenders.

 

11.4         No Waiver.  Agent’s or
any Lender’s failure, at any time or times, to require strict performance by
the Credit Parties of any provision of this Agreement or any other Loan
Document shall not waive, affect or diminish any right of Agent or such Lender
thereafter to demand strict compliance and performance herewith or
therewith.  Any suspension or waiver of
an Event of Default shall not suspend, waive or affect any other Event of
Default whether the same is prior or subsequent thereto and whether the same or
of a different type.  Subject to the
provisions of Section 11.2, none of the undertakings, agreements,
warranties, covenants and representations of any Credit Party contained in this
Agreement or any of the other Loan Documents and no Default or Event of Default
by any Credit Party shall be deemed to have been suspended or waived by Agent
or any Lender, unless such waiver or suspension is by an instrument in writing
signed by an officer of or other authorized employee of Agent and the
applicable required Lenders, and directed to Borrowers specifying such
suspension or waiver.

 

11.5         Remedies.  Agent’s and
Lenders’ rights and remedies under this Agreement shall be cumulative and
nonexclusive of any other rights and remedies that Agent or any Lender may have
under any other agreement, including the other Loan Documents, by operation of
law or otherwise.  Recourse to the
Collateral shall not be required.

 

11.6         Severability.  Wherever
possible, each provision of this Agreement and the other Loan Documents shall
be interpreted in such a manner as to be effective and valid under applicable
law, but if any provision of this Agreement or any other Loan Document shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective only to the 

 

68

 

extent of such
prohibition or invalidity without invalidating the remainder of such provision
or the remaining provisions of this Agreement or such other Loan Document.

 

11.7         Conflict of Terms.  Except as
otherwise provided in this Agreement or any of the other Loan Documents by
specific reference to the applicable provisions of this Agreement, if any
provision contained in this Agreement conflicts with any provision in any of
the other Loan Documents, the provision contained in this Agreement shall
govern and control.

 

11.8         Confidentiality.  Agent and
each Lender agree to maintain as confidential (using the same degree of care
used in maintaining the confidentiality of its own confidential information)
all confidential information provided to them by the Credit Parties and
designated as confidential for a period of 2 years following the termination of
this Agreement, except that Agent and any Lender may disclose such information (a) to
Persons employed or engaged by Agent or such Lender; (b) to any bona fide
assignee or participant or potential assignee or participant that has agreed to
comply with the covenant contained in this Section 11.8 (and any
such bona fide assignee or participant or potential assignee or participant may
disclose such information to Persons employed or engaged by them as described
in clause (a) above); (c) as required or requested by any
Governmental Authority or reasonably believed by Agent or such Lender to be
compelled by any court decree, subpoena or legal or administrative order or
process; (d) as, on the advice of Agent’s or such Lender’s counsel, is
required by law; (e) in connection with the exercise of any right or
remedy under the Loan Documents or in connection with any Litigation to which
Agent or such Lender is a party; or (f) that ceases to be confidential
through no fault of Agent or such Lender.

 

Notwithstanding anything to the contrary set forth
herein or in any other written or oral understanding or agreement to which the
parties hereto are parties or by which they are bound, the parties acknowledge
and agree that (i) any obligations of confidentiality contained herein and
therein do not apply and have not applied to the federal tax treatment and
federal tax structure of the Loans (the “Transactions”) (and any related
transactions or arrangements) from the commencement of discussions between the
parties, and (ii) each party (and each of its employees, representatives,
or other agents) may disclose to any and all persons, without limitation of any
kind, the federal tax treatment and federal tax structure of the Transaction
and all materials of any kind (including opinions or other tax analyses) that
are provided to such party relating to such tax treatment and tax
structure.  The preceding sentence is
intended to cause the Transaction to be treated as not having been offered
under conditions of confidentiality for purposes of Section 1.6011-4(b)(3) (or
any successor provision) of the Treasury Regulations promulgated under Section 6011
of the Internal Revenue Code of 1986, as amended, and shall be construed in a
manner consistent with such purpose. 
Subject to the proviso with respect to disclosure in the first sentence
of this paragraph, each party hereto acknowledges that it has no proprietary or
exclusive rights to the federal tax structure of the transaction contemplated
by this Agreement or any federal tax matter or federal tax idea related to the
Transaction.

 

11.9         GOVERNING LAW.  EXCEPT AS
OTHERWISE EXPRESSLY PROVIDED IN ANY OF THE LOAN DOCUMENTS, IN ALL RESPECTS,
INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THE LOAN
DOCUMENTS AND THE OBLIGATIONS SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED
IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK 

 

69

 

APPLICABLE TO CONTRACTS
MADE AND PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES
OF AMERICA.  EACH CREDIT PARTY HEREBY
CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN NEW YORK COUNTY,
CITY OF NEW YORK, NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND
DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THE CREDIT PARTIES, AGENT AND LENDERS
PERTAINING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR TO ANY
MATTER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN
DOCUMENTS; PROVIDED, THAT AGENT, LENDERS AND THE CREDIT PARTIES
ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A
COURT LOCATED OUTSIDE OF NEW YORK COUNTY; PROVIDED  FURTHER,  THAT NOTHING IN THIS AGREEMENT SHALL BE
DEEMED OR OPERATE TO PRECLUDE AGENT FROM BRINGING SUIT OR TAKING OTHER LEGAL
ACTION IN ANY OTHER JURISDICTION TO REALIZE ON THE COLLATERAL OR ANY OTHER
SECURITY FOR THE OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN
FAVOR OF AGENT, AND CREDIT PARTIES MAY MAKE ANY COUNTERCLAIMS RELATING TO
THE SAME MATTER, REQUESTS FOR EQUITABLE RELIEF RELATING TO THE SAME MATTER OR
AFFIRMATIVE DEFENSES IN CONNECTION THEREWITH. 
EACH CREDIT PARTY EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH
JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH CREDIT
PARTY HEREBY WAIVES ANY OBJECTION THAT SUCH CREDIT PARTY MAY HAVE BASED
UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM  NON  CONVENIENS
AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS
DEEMED APPROPRIATE BY SUCH COURT.  EACH
CREDIT PARTY HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER
PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH
SUMMONS, COMPLAINTS AND OTHER PROCESS MAY BE MADE BY REGISTERED OR
CERTIFIED MAIL ADDRESSED TO SUCH CREDIT PARTY AT THE ADDRESS SET FORTH IN ANNEX
I OF THIS AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON
THE EARLIER OF SUCH CREDIT PARTY’S ACTUAL RECEIPT THEREOF OR 3 DAYS AFTER
DEPOSIT IN THE UNITED STATES MAILS, PROPER POSTAGE PREPAID.

 

11.10       Notices.  Except as
otherwise provided herein, whenever it is provided herein that any notice,
demand, request, consent, approval, declaration or other communication shall or
may be given to or served upon any of the parties by any other parties, or
whenever any of the parties desires to give or serve upon any other parties any
communication with respect to this Agreement, each such notice, demand,
request, consent, approval, declaration or other communication shall be in
writing and shall be deemed to have been validly served, given or delivered: (a) upon
the earlier of actual receipt and 3 Business Days after deposit in the United
States Mail (if such communication is initiated in the United States)
registered or certified mail, return receipt requested, with proper postage
prepaid; (b) upon transmission, when sent by telecopy or other similar
facsimile transmission (with such telecopy or facsimile promptly confirmed by
delivery of a copy by personal delivery or United States Mail or as otherwise
provided in this Section 11.10); (c) 1 Business Day after
deposit with a reputable overnight courier with all charges prepaid or (d) when
delivered, if hand-delivered by messenger, all of 

 

70

 

which shall be addressed
to the party to be notified and sent to the address or facsimile number
indicated in Annex I or to such other address (or facsimile number) as
may be substituted by notice given as herein provided.  The giving of any notice required hereunder
may be waived in writing by the party entitled to receive such notice.  Failure or delay in delivering copies of any
notice, demand, request, consent, approval, declaration or other communication
to any Person (other than Borrower Representative or Agent) designated in Annex
I to receive copies shall in no way adversely affect the effectiveness of
such notice, demand, request, consent, approval, declaration or other communication.

 

11.11       Section Titles.  The Section titles
and Table of Contents contained in this Agreement are and shall be without
substantive meaning or content of any kind whatsoever and are not a part of the
agreement between the parties hereto.

 

11.12       Counterparts.  This
Agreement may be executed in any number of separate counterparts, each of which
shall collectively and separately constitute one agreement.

 

11.13       WAIVER OF JURY TRIAL.  THE PARTIES
HERETO KNOWINGLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR
PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT
OR OTHERWISE, AMONG AGENT, LENDERS AND ANY CREDIT PARTY ARISING OUT OF,
CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG
THEM IN CONNECTION WITH, THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR
THE TRANSACTIONS RELATED THERETO.

 

11.14       Press Releases and Related Matters. 
Each Credit Party executing this Agreement agrees that neither it nor
its Affiliates will in the future issue any press releases or other public
disclosure using the name of GE Capital or its affiliates or referring to this
Agreement, the other Loan Documents or the Related Transactions Documents
without at least 2 Business Days’ prior notice to GE Capital and without the
prior written consent of GE Capital unless (and only to the extent that) such
Credit Party or Affiliate is required to do so under law and then, in any
event, such Credit Party or Affiliate will consult with GE Capital before
issuing such press release or other public disclosure.  Each Credit Party consents to the publication
by Agent or any Lender of a tombstone or similar advertising material relating
to the financing transactions contemplated by this Agreement.  Agent reserves the right to provide to
industry trade organizations information necessary and customary for inclusion
in league table measurements.

 

11.15       Reinstatement.  This
Agreement shall remain in full force and effect and continue to be effective
should any petition be filed by or against any Borrower for liquidation or
reorganization, should any Borrower become insolvent or make an assignment for
the benefit of any creditor or creditors or should a receiver, interim
receiver, receiver and manager or trustee be appointed for all or any significant
part of any Borrower’s assets, and shall continue to be effective or to be
reinstated, as the case may be, if at any time payment and performance of the
Obligations, or any part thereof, is, pursuant to applicable law, rescinded or
reduced in amount, or must otherwise be restored or returned by any obligee of
the Obligations, whether as a “voidable preference,” “fraudulent conveyance,”
or otherwise, all as though such payment or performance had not been made.  In the event that any payment, or any part
thereof, is rescinded, 

 

71

 

reduced, restored or
returned, the Obligations shall be reinstated and deemed reduced only by such
amount paid and not so rescinded, reduced, restored or returned.

 

11.16       Advice of Counsel.  Each of the
parties represents to each other party hereto that it has discussed this
Agreement and, specifically, the provisions of Sections 11.9 and 11.13,
with its counsel.

 

11.17       No Strict Construction.  The parties
hereto have participated jointly in the negotiation and drafting of this
Agreement.  In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the parties hereto and no presumption or burden of
proof shall arise favoring or disfavoring any party by virtue of the authorship
of any provisions of this Agreement.

 

11.18       Currency Equivalent Generally. 
For the purposes of making valuations or computations under this
Agreement (but not for the purposes of the preparation of any financial
statements delivered pursuant hereto), and in particular, without limitation,
for purposes of valuations or computations under Sections 1.3(b), 3,
5, 6 and 8, unless expressly provided otherwise, where a
reference is made to a dollar amount the amount is to be considered as the
amount in Dollars and, therefor, each other currency shall be converted into
the Equivalent Amount thereof in Dollars.

 

11.19       Judgment Currency.

 

(a)           If, for the purpose of obtaining or enforcing judgment
against any Credit Party in any court in any jurisdiction, it becomes necessary
to convert into any other currency (such other currency being hereinafter in
this Section 11.19 referred to as the “Judgment Currency”)
an amount due under any Loan Document in any currency (the “Obligation
Currency”) other than the Judgment Currency, the conversion shall be made
at the rate of exchange prevailing on the Business Day immediately preceding (i) the
date of actual payment of the amount due, in the case of any proceeding in the
courts of any jurisdiction that will give effect to such conversion being made
on such date, or (ii) the date on which the judgment is given, in the case
of any proceeding in the courts of any other jurisdiction (the applicable date
as of which such conversion is made pursuant to this Section 11.19
being hereinafter in this Section 11.19 referred to as the “Judgment
Conversion Date”).

 

(b)           If, in the case of any proceeding in the court of any
jurisdiction referred to in Section 11.19(a), there is a change in
the rate of exchange prevailing between the Judgment Conversion Date and the
date of actual receipt for value of the amount due, the applicable Credit Party
shall pay such additional amount (if any, but in any event not a lesser amount)
as may be necessary to ensure that the amount actually received in the Judgment
Currency, when converted at the rate of exchange prevailing on the date of
payment, will produce the amount of the Obligation Currency which could have
been purchased with the amount of the Judgment Currency stipulated in the
judgment or judicial order at the rate of exchange prevailing on the Judgment
Conversion Date.  Any amount due from a
Credit Party under Section 11.19(b) shall be due as a separate
debt and shall not be affected by judgment being obtained for any other amounts
due under or in respect of any of the Loan Documents.

 

72

 

(c)           The term “rate of exchange” in this Section 11.19
means the rate of exchange at which Agent would, on the relevant date at or
about 1:00 p.m.(New York time), be prepared to sell the Obligation
Currency against the Judgment Currency.

 

11.20       Intentionally Omitted.

 

11.21       Amendment and Restatement. 
Each Credit Party acknowledges and agrees that the security interest
granted to Agent, for the benefit of Prior Lender Group, or any of them,
pursuant to the Loan Documents (as defined in the Prior Credit Agreement),
shall remain outstanding and in full force and effect in accordance with the
Prior Credit Agreement and the other Loan Documents (as defined in the Prior
Credit Agreement), as modified herein and in the other Loan Documents, and
shall continue to secure the Obligations. 
Credit Parties and Lenders acknowledge and confirm that (i) the
Obligations represent, among other things, the amendment, restatement, renewal,
extension, consolidation and modification of the Obligations (as defined in the
Prior Credit Agreement) arising in connection with the Prior Credit Agreement
and other Loan Documents (as defined in the Prior Credit Agreement); (ii) the
Prior Credit Agreement and the other Loan Documents (as defined in the Prior
Credit Agreement) and the collateral pledged thereunder shall secure, without
interruption or impairment of any kind, all existing Obligations (as defined in
the Prior Credit Agreement) under the Prior Credit Agreement and the other Loan
Documents (as defined in the Prior Credit Agreement) as amended, restated,
renewed, extended, consolidated or modified hereunder and under the other Loan
Documents, together with all other Obligations hereunder; (iii) all Liens
evidenced by the Loan Documents (as defined in the Prior Credit Agreement) are
hereby ratified, confirmed and continued as modified, amended or restated under
the Loan Documents; and (iv) this Agreement is intended to restate, renew,
extend, consolidate, amend and modify the Prior Credit Agreement in its
entirety.  Borrowers and Lenders intend
that (i) the provisions of the Prior Credit Agreement and the other Loan
Documents (as defined in the Prior Credit Agreement), to the extent restated,
renewed, extended, consolidated, amended or modified hereby and by the other
Loan Documents, be hereby superseded and replaced by the provisions hereof and
of the other Loan Documents; and (ii) by entering into and performing
their respective obligations hereunder, this transaction shall not constitute a
novation and shall in no way adversely affect or impair the priority of Liens
granted by the Loan Documents (as defined in the Prior Credit Agreement).

 

12.           CROSS-GUARANTY

 

12.1         Cross-Guaranty.

 

(a)           Each Borrower hereby agrees that such Borrower is
jointly and severally liable for, and hereby absolutely and unconditionally
guarantees to Agent and Lenders and their respective successors and assigns,
the full and prompt payment (whether at stated maturity, by acceleration or
otherwise) and performance of, all Obligations owed or hereafter owing to Agent
and Lenders by each other Borrower.  Each
Borrower agrees that its guaranty obligation hereunder is a continuing guaranty
of payment and performance and not of collection, that its obligations under
this Section 12 shall not be discharged until payment and
performance, in full, of the Obligations has occurred, and that its obligations
under this Section 12 shall be absolute and unconditional,
irrespective of, and unaffected by,

 

73

 

(i)            the genuineness, validity, regularity, enforceability
or any future amendment of, or change in, this Agreement, any other Loan
Document or any other agreement, document or instrument to which any Borrower
is or may become a party;

 

(ii)           the absence of any action to enforce this Agreement
(including this Section 12) or any other Loan Document or the
waiver or consent by Agent and Lenders with respect to any of the provisions
thereof;

 

(iii)          the existence, value or condition of, or failure to
perfect its Lien against, any security for the Obligations or any action, or
the absence of any action, by Agent and Lenders in respect thereof (including
the release of any such security);

 

(iv)          the insolvency of any Credit Party; or

 

(v)           any other action or circumstances that might otherwise
constitute a legal or equitable discharge or defense of a surety or guarantor.

 

Each Borrower shall be regarded, and shall be in the same position, as
principal debtor with respect to the Obligations guaranteed hereunder.

 

(b)           Each Borrower expressly represents and acknowledges
that it is part of a common enterprise with the other Borrowers and that any
financial accommodations by Lenders, or any of them, to any other Borrower
hereunder and under the other Loan Documents are and will be of direct and
indirect interest, benefit and advantage to all Borrowers.

 

12.2         Waivers by Borrowers.  Each Borrower
expressly waives all rights it may have now or in the future under any statute,
or at common law, or at law or in equity, or otherwise, to compel Agent or
Lenders to marshal assets or to proceed in respect of the Obligations
guaranteed hereunder against any other Credit Party, any other party or against
any security for the payment and performance of the Obligations before
proceeding against, or as a condition to proceeding against, such
Borrower.  It is agreed among each
Borrower, Agent and Lenders that the foregoing waivers are of the essence of
the transaction contemplated by this Agreement and the other Loan Documents and
that, but for the provisions of this Section 12 and such waivers,
Agent and Lenders would decline to enter into this Agreement.

 

12.3         Benefit of Guaranty.  Each Borrower
agrees that the provisions of this Section 12 are for the benefit
of Agent and Lenders and their respective successors, transferees, endorsees
and assigns, and nothing herein contained shall impair, as between any other
Borrower and Agent or Lenders, the obligations of such other Borrower under the
Loan Documents.

 

12.4         Subordination of Subrogation, Etc. 
Notwithstanding anything to the contrary in this Agreement or in any
other Loan Document, and except as set forth in Section 12.7, each
Borrower hereby expressly and irrevocably subordinates to payment of the
Obligations any and all rights at law or in equity to subrogation,
reimbursement, exoneration, contribution, indemnification or set off and any
and all defenses available to a surety, guarantor or accommodation co-obligor
until the Obligations are indefeasibly paid in full in cash.  Each Borrower acknowledges and agrees that
this subordination is intended to benefit Agent and Lenders and shall not limit
or otherwise affect such Borrower’s liability hereunder or the 

 

74

 

enforceability of this Section 12,
and that Agent, Lenders and their respective successors and assigns are
intended third party beneficiaries of the waivers and agreements set forth in
this Section 12.4.

 

12.5         Election of Remedies.  If Agent or
any Lender may, under applicable law, proceed to realize its benefits under any
of the Loan Documents giving Agent or such Lender a Lien upon any Collateral,
whether owned by any Borrower or by any other Person, either by judicial
foreclosure or by non-judicial sale or enforcement, Agent or any Lender may, at
its sole option, determine which of its remedies or rights it may pursue
without affecting any of its rights and remedies under this Section 12.  If, in the exercise of any of its rights and
remedies, Agent or any Lender shall forfeit any of its rights or remedies,
including its right to enter a deficiency judgment against any Borrower or any
other Person, whether because of any applicable laws pertaining to “election of
remedies” or the like, each Borrower hereby consents to such action by Agent or
such Lender and waives any claim based upon such action, even if such action by
Agent or such Lender shall result in a full or partial loss of any rights of
subrogation that each Borrower might otherwise have had but for such action by
Agent or such Lender.  Any election of
remedies that results in the denial or impairment of the right of Agent or any
Lender to seek a deficiency judgment against any Borrower shall not impair any
other Borrower’s obligation to pay the full amount of the Obligations.  In the event Agent or any Lender shall bid at
any foreclosure or trustee’s sale or at any private sale permitted by law or
the Loan Documents, Agent or such Lender may bid all or less than the amount of
the Obligations and the amount of such bid need not be paid by Agent or such
Lender but shall be credited against the Obligations.  The amount of the successful bid at any such
sale, whether Agent, Lender or any other party is the successful bidder, shall
be conclusively deemed to be the fair market value of the Collateral and the
difference between such bid amount and the remaining balance of the Obligations
shall be conclusively deemed to be the amount of the Obligations guaranteed
under this Section 12, notwithstanding that any present or future
law or court decision or ruling may have the effect of reducing the amount of
any deficiency claim to which Agent or any Lender might otherwise be entitled
but for such bidding at any such sale.

 

12.6         Limitation. 
Notwithstanding any provision herein contained to the contrary, each Borrower’s
liability under this Section 12 shall be limited to an amount not
to exceed as of any date of determination the greater of:

 

(a)           the amount of all Loans advanced to such Borrower

 

(b)           the net amount of all Loans advanced to another
Borrower under this Agreement and then re-loaned or otherwise transferred to,
or for the benefit of, such Borrower; and

 

(c)           the amount that could be claimed by Agent and Lenders
from such Borrower under this Section 12 without rendering such
claim voidable or avoidable under Section 548 of Chapter 11 of the
Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act,
Uniform Fraudulent Conveyance Act or similar foreign or domestic statute or
common law after taking into account, among other things, such Borrower’s right
of contribution and indemnification from each other Borrower under Section 12.7.

 

75

 

12.7         Contribution with Respect to Guaranty Obligations.

 

(a)           To the extent that any Borrower shall make a payment
under this Section 12 of all or any of the Obligations (other than
Loans made to that Borrower for which it is primarily liable) (a “Guarantor
Payment”) that, taking into account all other Guarantor Payments then
previously or concurrently made by any other Borrower, exceeds the amount that
such Borrower would otherwise have paid if each Borrower had paid the aggregate
Obligations satisfied by such Guarantor Payment in the same proportion that
such Borrower’s “Allocable Amount” (as defined below) (as determined
immediately prior to such Guarantor Payment) bore to the aggregate Allocable
Amounts of each of the Borrowers as determined immediately prior to the making
of such Guarantor Payment, then, following indefeasible payment in full in cash
of the Obligations and termination of the Commitments, such Borrower shall be
entitled to receive contribution and indemnification payments from, and be
reimbursed by, each other Borrower for the amount of such excess, pro rata
based upon their respective Allocable Amounts in effect immediately prior to
such Guarantor Payment.

 

(b)           As of any date of determination, the “Allocable
Amount” of any Borrower shall be equal to the maximum amount of the claim
that could then be recovered from such Borrower under this Section 12
without rendering such claim voidable or avoidable under Section 548 of
Chapter 11 of the Bankruptcy Code or under any applicable state Uniform
Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute
or common law.

 

(c)           This Section 12.7 is intended only to
define the relative rights of Borrowers and nothing set forth in this Section 12.7
is intended to or shall impair the obligations of Borrowers, jointly and
severally, to pay any amounts as and when the same shall become due and payable
in accordance with the terms of this Agreement, including Section 12.1.  Nothing contained in this Section 12.7
shall limit the liability of any Borrower to pay the Loans made directly or
indirectly to that Borrower and accrued interest, Fees and expenses with
respect thereto for which such Borrower shall be primarily liable.

 

(d)           The parties hereto acknowledge that the rights of
contribution and indemnification hereunder shall constitute assets of the
Borrower to which such contribution and indemnification is owing.

 

(e)           The rights of the indemnifying Borrowers against other
Credit Parties under this Section 12.7 shall be exercisable upon
the full and indefeasible payment of the Obligations and the termination of the
Commitments.

 

12.8         Liability Cumulative.  The liability
of Borrowers under this Section 12 is in addition to and shall be
cumulative with all liabilities of each Borrower to Agent and Lenders under
this Agreement and the other Loan Documents to which such Borrower is a party
or in respect of any Obligations or obligation of the other Borrower, without
any limitation as to amount, unless the instrument or agreement evidencing or
creating such other liability specifically provides to the contrary.

 

12.9         USA Patriot Act Notice.  Each of
Lenders and Agent hereby notifies Borrowers that, pursuant to the requirements
of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into 

 

76

 

law October 26,
2001)), it is required to obtain, verify and record information that identifies
Borrowers, which information includes the name and address of each Borrower and
other information that will allow such Lender or Agent, as applicable, to
identify such Borrower in accordance with the USA Patriot Act.

 

[SIGNATURE PAGES FOLLOW]

 

77

 

Execution Copy

 

IN
WITNESS WHEREOF, this Agreement has been duly executed as of the date first
written above.

 

	
   

  	
  BORROWERS

  
	
   

  	
   

  
	
   

  	
  BLOUNT,
  INC., a
  Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Calvin E. Jenness

  
	
   

  	
  Name: Calvin E. Jenness

  
	
   

  	
  Title: Senior Vice
  President & Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GEAR
  PRODUCTS, INC., an
  Oklahoma corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Calvin E.
  Jenness

  
	
   

  	
  Name: Calvin E.
  Jenness

  
	
   

  	
  Title: Vice
  President & Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  OMARK
  PROPERTIES, INC., an
  Oregon corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Calvin E. Jenness

  
	
   

  	
  Name: Calvin E. Jenness

  
	
   

  	
  Title: Senior Vice
  President & Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WINDSOR
  FORESTRY TOOLS LLC,
  a Tennessee limited liability company

  
	
   

  	
   

  
	
   

  	
  By: Blount, Inc.,
  its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Calvin E. Jenness

  
	
   

  	
  Name: Calvin E. Jenness

  
	
   

  	
  Title: Senior Vice
  President & Chief Financial Officer

  

 

S-1

 

	
   

  	
  AGENT
  AND LENDERS:

  
	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC CAPITAL CORPORATION,
  as Agent and
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Judith A. Langan

  
	
   

  	
  Name: Judith A. Langan

  
	
   

  	
  Title: Duly Authorized
  Signatory

  

 

S-2

 

The
following Persons are signatories to this Agreement in their capacity as Credit
Parties and not as Borrowers.

 

	
   

  	
  CREDIT
  PARTIES:

  
	
   

  	
   

  
	
   

  	
  BLOUNT
  INTERNATIONAL, INC., a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Calvin E. Jenness

  
	
   

  	
  Name: Calvin E. Jenness

  
	
   

  	
  Title: Senior Vice
  President & Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BI,
  L.L.C., a
  Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By: Blount, Inc.,
  its managing member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Calvin E. Jenness

  
	
   

  	
  Name: Calvin E. Jenness

  
	
   

  	
  Title: Senior Vice
  President & Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  4520
  CORP., INC., a
  Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Calvin E. Jenness

  
	
   

  	
  Name: Calvin E. Jenness

  
	
   

  	
  Title: Senior Vice
  President & Chief Financial Officer

  

 

S-3

 

ANNEX A (RECITALS)

TO

CREDIT AGREEMENT

 

DEFINITIONS

 

Capitalized
terms used in the Loan Documents shall have (unless otherwise provided
elsewhere in the Loan Documents) the following respective meanings, and all
references to Sections, Exhibits, Schedules or Annexes in the following
definitions shall refer to Sections, Exhibits, Schedules or Annexes of or to
the Agreement:

 

“Account
Debtor” means any Person who may become obligated to any Credit Party
under, with respect to, or on account of, an Account, Chattel Paper or General
Intangibles (including a payment intangible).

 

“Accounting
Changes” has the meaning ascribed thereto in Annex G.

 

“Accounts”
means all “accounts,” as such term is defined in the Code, now owned or
hereafter acquired by any Credit Party, including (a) all accounts
receivable, other receivables, book debts and other forms of obligations (other
than forms of obligations evidenced by Chattel Paper, or Instruments),
(including any such obligations that may be characterized as an account or
contract right under the Code), (b) all of each Credit Party’s rights in,
to and under all purchase orders or receipts for goods or services, (c) all
of each Credit Party’s rights to any goods represented by any of the foregoing
(including unpaid sellers’ rights of rescission, replevin, reclamation and stoppage in
transit and rights to returned, reclaimed or repossessed goods), (d) all
rights to payment due to any Credit Party for property sold, leased, licensed,
assigned or otherwise disposed of, for a policy of insurance issued or to be
issued, for a secondary obligation incurred or to be incurred, for energy
provided or to be provided, for the use or hire of a vessel under a charter or
other contract, arising out of the use of a credit card or charge card, or for
services rendered or to be rendered by such Credit Party or in connection with
any other transaction (whether or not yet earned by performance on the part of
such Credit Party), (e) all health care insurance receivables and (f) all
collateral security of any kind, now or hereafter in existence, given by any
Account Debtor or any other Person with respect to any of the foregoing.

 

“Acquisition
Pro Forma” has the meaning ascribed thereto in Section 6.

 

“Activation
Event” and “Activation Notice” have the meanings ascribed thereto in
Annex C.

 

“Advance”
means the amount of the Loans advanced under Section 1.1 of the
Agreement on the occasion of any borrowing thereunder.

 

“Affected
Lender” has the meaning ascribed thereto in Section 1.16(d).

 

“Affiliate”
means, with respect to any Person, (a) each Person that, directly or
indirectly, owns or controls, whether beneficially, or as a trustee, guardian
or other fiduciary, 10% or more of the Stock having ordinary voting power in
the election of directors of such 

 

A-1

 

Person, (b) each Person that controls, is
controlled by or is under common control with such Person, (c) each of
such Person’s officers, directors, joint venturers and partners and (d) in
the case of Borrowers, the immediate family members, spouses and lineal
descendants of individuals who are Affiliates of any Borrower.  For the purposes of this definition, “control”
of a Person shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of its management or policies, whether through
the ownership of voting securities, by contract or otherwise; provided, however,
that the term “Affiliate” shall specifically exclude Agent and each
Lender.

 

“Agent”
means GE Capital, as agent hereunder and under the other Loan Documents, and
its successor appointed pursuant to Section 9.7.

 

“Agreement”
means that certain Second Amended and Restated Credit Agreement by and among
Borrowers, the other Credit Parties party thereto, GE Capital, as Agent and
Lender, and the other Lenders from time to time party thereto, as the same may
be amended, supplemented, restated or otherwise modified from time to time.

 

“Appendices”
has the meaning ascribed to it in the recitals to the Agreement.

 

“Applicable
Existing Term Loan Index Margin” means the per annum interest rate from
time to time in effect and payable in addition to the Index Rate applicable to
the Existing Term Loan, as determined by reference to Section 1.5(a).

 

“Applicable
Existing Term Loan LIBOR Margin” means the per annum interest rate from
time to time in effect and payable in addition to the LIBOR Rate applicable to
the Existing Term Loan, as determined by reference to Section 1.5(a).

 

“Applicable
Extending Term Loan Index Margin” means the per annum interest rate from
time to time in effect and payable in addition to the Index Rate applicable to
the Extending Term Loan, as determined by reference to Section 1.5(a).

 

“Applicable
Extending Term Loan LIBOR Margin” means the per annum interest rate from
time to time in effect and payable in addition to the LIBOR Rate applicable to
the Extending Term Loan, as determined by reference to Section 1.5(a).

 

“Applicable
Margins” means collectively the Applicable Unused Line Fee Margin, the
Applicable Revolver Index Margin, the Applicable Existing Term Loan Index
Margin, the Applicable Extending Term Loan Index Margin, the Applicable
Revolver LIBOR Margin, the Applicable Existing Term Loan LIBOR Margin and the
Applicable Extending Term Loan LIBOR Margin.

 

“Applicable
Revolver Index Margin” means the per annum interest rate from time to time
in effect and payable in addition to the Index Rate applicable to the Revolving
Loan, as determined by reference to Section 1.5(a).

 

“Applicable
Revolver LIBOR Margin” means the per annum interest rate from time to time
in effect and payable in addition to the LIBOR Rate applicable to the Revolving
Loan, as determined by reference to Section 1.5(a).

 

A-2

 

“Applicable
Unused Line Fee Margin” means the per annum fee, from time to time in
effect, payable in respect of Borrowers’ non-use of committed funds pursuant to
Section 1.9(b), which fee is determined by reference to Section 1.5(a).

 

“Approved
Fund” means, with respect to any Lender, any Person (other than a natural
Person) that (a) is or will be engaged in making, purchasing, holding or
otherwise investing in commercial loans and similar extensions of credit in the
ordinary course of its business and (b) is advised or managed by (i) such
Lender, (ii) any Affiliate of such Lender or (iii) any Person (other
than an individual) or any Affiliate of any Person (other than an individual)
that administers or manages such Lender.

 

“Assignment
Agreement” has the meaning ascribed to it in Section 9.1.

 

“Bankruptcy
Code” means the provisions of Title 11 of the United States Code, 11 U.S.C.
§§101 et  seq., as now and hereafter in effect, any successors to
such statutes and any other applicable insolvency or other similar law of any
jurisdiction including, without limitation, any law of any jurisdiction
permitting a debtor to obtain a stay or a compromise of the claims of its
creditors against it.

 

“Blocked
Accounts” has the meaning ascribed to it in Annex C.

 

“Blount
China” means Blount (Fuzhou) Industries Co. Limited, a wholly-owned
subsidiary of Blount, Inc. organized under the laws of The People’s
Republic of China.

 

“Blount, Inc.”
has the meaning ascribed to it in the preamble of the Agreement.

 

“Borrower”
and “Borrowers” have the respective meanings ascribed to them in the
preamble of this Agreement.

 

“Borrower
Representative” means Blount, Inc. in its capacity as Borrower
Representative pursuant to the provisions of Section 1.1(d).

 

“Borrowing
Availability” means as of any date of determination, the Maximum Amount,
less the sum of the aggregate Revolving Loan and Swing Line Loan then
outstanding.

 

“Business
Day” means any day that is not a Saturday, a Sunday or a day on which banks
are required or permitted to be closed in New York and in reference to LIBOR
Loans shall mean any such day that is also a LIBOR Business Day.

 

“Capital
Expenditures” means, with respect to any Person, all expenditures (by the
expenditure of cash or the incurrence of Indebtedness) by such Person during
any measuring period for any fixed assets or improvements or for replacements,
substitutions or additions thereto that have a useful life of more than one
year and that are required to be capitalized under GAAP.

 

“Capital
Lease” means, with respect to any Person, any lease of any property
(whether real, personal or mixed) by such Person as lessee that, in accordance
with GAAP, 

 

A-3

 

would be required to be classified and accounted for
as a capital lease on a balance sheet of such Person.

 

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

 

“Cash
Collateral Account” has the meaning ascribed to it in Annex B.

 

“Cash
Equivalents” has the meaning ascribed to it in Annex B.

 

“Cash
Management Systems” has the meaning ascribed to it in Section 1.8.

 

“CERCLA”
has the meaning ascribed to it in this Annex under the definition of “Environmental
Laws”.

 

“Change
of Control” means any of the following: 
(a) any person or group of persons (within the meaning of the
Securities Exchange Act of 1934), shall have acquired beneficial ownership
(within the meaning of Rule 13d-3 promulgated by the Securities and
Exchange Commission under the Securities Exchange Act of 1934,) of 20% or more
of the issued and outstanding shares of capital Stock of Holdings having the
right to vote for the election of directors of Holdings under ordinary
circumstances; (b) during any period of twelve consecutive calendar
months, individuals who at the beginning of such period constituted the board
of directors of Holdings (together with any new directors whose election by the
board of directors of Holdings or whose nomination for election by the
Stockholders of Holdings was approved by a vote of at least two-thirds of the
directors then still in office who either were directors at the beginning of
such period or whose election or nomination for election was previously so
approved) cease for any reason other than death or disability to constitute a
majority of the directors then in office; (c) Holdings ceases to own and
control all of the economic and voting rights associated with all of the
outstanding capital Stock of Blount, Inc., (d) except for minority
interests in certain Foreign Subsidiaries as of the Closing Date and except as
specifically permitted under Section 6.8(c), Blount, Inc.
ceases to own and control all of the economic and voting rights associated with
all of the outstanding capital Stock of any of its Subsidiaries, or (e) any
“change of control” as defined in the New Subordinated Debt Documents.

 

“Charges”
means all federal, state, provincial, county, city, municipal, local, foreign
or other governmental taxes (including taxes owed to the PBGC at the time due
and payable), levies, assessments, charges, liens, claims or encumbrances owed
by any Credit Party and upon or relating to (a) the Collateral, (b) the
Obligations, (c) the employees, payroll, income, capital or gross receipts
of any Credit Party, (d) any Credit Party’s ownership or use of any
properties or other assets, or (e) any other aspect of any Credit Party’s
business.

 

“Chattel
Paper” means any “chattel paper,” as such term is defined in the Code,
including electronic chattel paper, now owned or hereafter acquired by any
Credit Party.

 

“Closing
Checklist” means the schedule, including all appendices, exhibits or
schedules thereto, listing certain documents and information to be delivered in
connection with

 

A-4

 

the Agreement, the other Loan Documents and the
transactions contemplated thereunder, substantially in the form attached hereto
as Annex D.

 

“Closing
Date” means December 4, 2009.

 

“Code”
means the Uniform Commercial Code as the same may, from time to time, be
enacted and in effect in the State of New York; provided, that to the
extent that the Code is used to define any term herein or in any Loan Document
and such term is defined differently in different Articles or Divisions of the
Code, the definition of such term contained in Article or Division 9 shall
govern; provided  further, that in the event that, by reason of
mandatory provisions of law, any or all of the attachment, perfection,
publication or priority of, or remedies with respect to, Agent’s or any Lender’s
Lien on any Collateral is governed by the Uniform Commercial Code or foreign
personal property security laws as enacted and in effect in a jurisdiction
other than the State of New York, the term “Code” shall mean the Uniform
Commercial Code or such foreign personal property security laws as enacted and
in effect in such other jurisdiction solely for purposes of the provisions
thereof relating to such attachment, perfection, priority or remedies and for
purposes of definitions related to such provisions; provided  further,
that if such foreign personal property security laws do not contain a
definition that is used in another Loan Document, the definition that is used
in such other Loan Document shall have the meaning given to it in the Code as
though the references to the words “ or such foreign personal property security
laws” in the second proviso of this definition do not exist.

 

“Collateral”
means the property covered by the Security Agreement, the Pledge Agreements,
the Mortgages and the other Collateral Documents and any other property, real
or personal, tangible or intangible, now existing or hereafter acquired, that
may at any time be or become subject to a security interest or Lien in favor of
Agent, on behalf of itself and Lenders, to secure the Obligations, or any
portion thereof as specified therein.

 

“Collateral
Documents” means the Security Agreement, the Pledge Agreements, the
Guaranties, the Mortgages, the Patent Security Agreements, the Trademark
Security Agreements, the Copyright Security Agreements and all similar
agreements entered into guaranteeing payment of, or granting a Lien upon
property as security for payment of, the Obligations.

 

“Collateral
Reports” means the reports with respect to the Collateral referred to in Annex
F.

 

“Collection
Account” means that certain account of Agent, account number 502-328-54 in
the name of Agent at Bankers Trust Company in New York, New York ABA No. 021
001 033, or such other account as may be specified in writing by Agent as the “Collection
Account.”

 

“Commitment
Termination Date” means the earliest of (a)(i) with respect to the
Existing Term Loan Commitment and the term loans comprising the Existing Term
Loan, August 9, 2010, and (ii) with respect to the Revolving Loan
Commitment, the Revolving Loans, the Extending Term Loan Commitment and the
term loans comprising the Extending Term Loan, February 9, 2012, (b) the
date of termination of Lenders’ obligations to make Advances and to

 

A-5

 

incur Letter of Credit Obligations or permit existing
Loans to remain outstanding pursuant to Section 8.2(b), and (c) the
date of indefeasible prepayment in full by Borrowers of the Loans and the
cancellation and return (or stand-by guarantee) of all Letters of Credit or the
cash collateralization of all Letter of Credit Obligations pursuant to Annex
B, and the permanent reduction of all Commitments to zero dollars ($0).

 

“Commitments”
means, as to any Lender, the aggregate of such Lender’s Revolving Loan
Commitment (including without duplication, the Swing Line Lender’s Swing Line
Commitment as a subset of its Revolving Loan Commitment) and Term Loan B
Commitment as set forth on Annex J to the Agreement or in the most
recent Assignment Agreement executed by such Lender and (b) as to all
Lenders, the aggregate of all Lenders’ Revolving Loan Commitments (including,
without duplication, the Swing Line Lender’s Swing Line Commitment as a subset
of its Revolving Loan Commitment) and Term Loan B Commitment which aggregate
commitment shall be One Hundred Seven Million Four Hundred Sixty Five Thousand
Three Hundred One Dollars and 84/100 ($107,465,301.84) on the Closing Date, as
to each of clauses (a), (b) and (c), as such Commitments may be reduced,
amortized or adjusted from time to time in accordance with the Agreement.

 

“Compliance
Certificate” has the meaning ascribed to it in Annex E.

 

“Concentration
Accounts” has the meaning ascribed to it in Annex C.

 

“Contracts”
means all “contracts,” as such term is defined in the Code, now owned or
hereafter acquired by any Credit Party, in any event, including all contracts,
undertakings, or agreements in or under which any Credit Party may now or
hereafter have any right, title or interest, including any agreement relating
to the terms of payment or the terms of performance of any Account.

 

“Control
Letter” means a letter agreement between Agent and (i) the issuer of
uncertificated securities with respect to uncertificated securities in the name
of any Credit Party, (ii) a securities intermediary with respect to
securities, whether certificated or uncertificated, securities entitlements and
other financial assets held in a securities account in the name of any Credit
Party, (iii) a futures commission merchant or clearing house, as
applicable, with respect to commodity accounts and commodity contracts held by
any Credit Party, whereby, among other things, the issuer, securities
intermediary or futures commission merchant disclaims any security interest in
the applicable financial assets, acknowledges the Lien of Agent, on behalf of
itself and Lenders, on such financial assets, and agrees to follow the instructions
or entitlement orders of Agent without further consent by the affected Credit
Party.

 

“Copyright
License” means any and all rights now owned or hereafter acquired by any
Credit Party under any written agreement granting any right to use any Copyright
or Copyright registration.

 

“Copyright
Security Agreements” means the Copyright Security Agreements made in favor
of Agent, on behalf of itself and Lenders, by each applicable Credit Party.

 

“Copyrights”
means all of the following now owned or hereafter adopted or acquired by any
Credit Party: (a) all copyrights and General Intangibles of like nature
(whether 

 

A-6

 

registered or unregistered), all registrations and
recordings thereof, and all applications in connection therewith, including all
registrations, recordings and applications in the United States Copyright
Office or in any similar office or agency of the United States, any state or
territory thereof or any other country or any political subdivision thereof,
and (b) all reissues, extensions or renewals thereof.

 

“Credit
Agreement Joinder Agreement” has the meaning ascribed to it in Section 5.13
of the Agreement.

 

“Credit
Facility Leverage Ratio” means, with respect to Holdings, on a consolidated
basis, the ratio of (a) the amount of the Loans outstanding (including
Letter of Credit Obligations) as of any date of determination to (b) the
sum of EBITDA for the twelve months ending on that date of determination.

 

“Credit
Parties” means, collectively, Holdings, each Borrower and each domestic
Subsidiary of a Borrower that executes and delivers a Guaranty; and “Credit
Party” means any one of the foregoing Credit Parties.

 

“Default”
means any event that, with the passage of time or notice or both, would, unless
cured or waived, become an Event of Default.

 

“Default
Rate” has the meaning ascribed to it in Section 1.5(e).

 

“Deposit
Accounts” means all “deposit accounts” as such term is defined in the Code,
now or hereafter held in the name of any Credit Party.

 

“Design”
means the following now owned or hereafter acquired by any Credit Party:  (a) all industrial designs, design
patents, other designs and intangibles of like nature (whether registered or
unregistered) now owned or existing or hereafter adopted or acquired, all
registrations and recordings thereof and all applications in connection
therewith, including all registrations, recordings and applications in the
Canadian Industrial Designs Office or any similar office in any country and all
records thereof and (b) all reissues, extensions or renewals thereof.

 

“Design
License” means rights under any written agreement now owned or hereafter
acquired by any Credit Party granting any right to use any Design.

 

“Disbursement
Accounts” has the meaning ascribed to it in Annex C.

 

“Disclosure
Schedules” means the Schedules prepared by Borrowers and denominated as
Disclosure Schedules (1.4) through (6.7) in the Index to the
Agreement.

 

“Documents”
means all “documents,” as such term is defined in the Code, now owned or
hereafter acquired by any Credit Party, wherever located.

 

“Dollars”
or “$” means the lawful currency of the United States.

 

A-7

 

“EBITDA”
means, with respect to any Person for any fiscal period, without duplication,
an amount equal to (a) consolidated net income of such Person for such
period determined in accordance with GAAP, minus (b) the sum of (i) income
tax credits, (ii) interest income, (iii) gain from extraordinary
items for such period, (iv) any aggregate net gain (but not any aggregate
net loss) during any four quarter period exceeding $1,000,000 (and only to the
extent that such net gain exceeds $1,000,000, so that the first $1,000,000 of
such net gain is not deducted pursuant to this clause (iv)) in the aggregate
arising from the sale, exchange or other disposition of capital assets by such
Person (including any fixed assets, whether tangible or intangible, all
Inventory sold in conjunction with the disposition of fixed assets and all
securities), and (v) any other non-cash gains that have been added in
determining consolidated net income, in each case to the extent included in the
calculation of consolidated net income of such Person for such period in
accordance with GAAP, but without duplication, plus (c) the sum of (i) any
provision for income taxes, (ii) Interest Expense plus fees associated
with this transaction that are not capitalized, (iii) loss from
extraordinary items for such period, (iv) the amount of non-cash charges
(including depreciation and amortization of tangible and intangible assets) for
such period, (v) amortized debt discount for such period, (vi) the
amount of any deduction to consolidated net income as the result of any grant
to, or exercise by, any members of the management of such Person of any Stock, (vii) cash
expenses incurred during any four quarter period in connection with
discontinued operations up to $3,000,000 in the aggregate, (viii) any
aggregate net loss (but not any aggregate net gain) during any four quarter
period not to exceed $1,000,000 in the aggregate arising from the sale,
exchange or other disposition of capital assets by such Person (including any
fixed assets, whether tangible or intangible, all Inventory sold in conjunction
with the disposition of fixed assets and all securities), (ix) expenses
incurred in connection with the consolidation of the Credit Parties’ and their
Subsidiaries’ warehouses and the curtailment of Credit Parties’ logistics
arrangements in an aggregate amount not to exceed $4,000,000 during the term of
this Agreement,  (x) any non-cash
charges not to exceed $12,500,000 in the aggregate accrued in connection with
the acceleration of scheduled amortization with respect to the liabilities of
one or more of Borrowers’ benefit plans due to the alteration of any such
benefit plan, and any cash charges associated with the communication of such
alteration or the transition of any defined benefit plan in an amount not to
exceed $500,000 in the aggregate incurred in connection therewith, in each case
to the extent included in the calculation of consolidated net income of such
Person for such period in accordance with GAAP, but without duplication, (xi)
restructuring expenses and related charges incurred during the Fiscal Quarters
ended on or prior to December 31, 2008 in connection with the Forestry
Division sale and related consolidation of corporate and divisional
infrastructure in an amount not to exceed $5,000,000, (xii) cash restructuring
charges paid during the fiscal year ending December 31, 2009 in an
aggregate amount not to exceed $3,500,000 and (xiii) cash expenses incurred in
connection with the transition of such Person’s chief executive officer or
chief executive officer designate incurred between January 1, 2009
throughout the term of this Agreement in an aggregate amount not to exceed
$3,000,000.  For purposes of this
definition, the following items shall be excluded in determining consolidated
net income of a Person: (1) the income (or deficit) of any other Person
accrued prior to the date it became a Subsidiary of, or was merged or
consolidated into or amalgamated with, such Person or any of such Person’s
Subsidiaries; (2) the income (or deficit) of any other Person (other than
a Subsidiary) in which such Person has an ownership interest, except to the
extent any such income has actually been received by such Person in the form of
cash dividends or distributions; (3) the undistributed 

 

A-8

 

earnings of any Subsidiary of such Person to the
extent that the declaration or payment of dividends or similar distributions by
such Subsidiary is not at the time permitted by the terms of any contractual
obligation or requirement of law applicable to such Subsidiary; (4) any
restoration to income of any contingency reserve, except to the extent that
provision for such reserve was made out of income accrued during such period; (5) any
write-up of any asset; (6) any net gain from the collection of the
proceeds of life insurance policies; (7) any net gain arising from the
acquisition of any securities, or the extinguishment, under GAAP, of any
Indebtedness, of such Person, (8) in the case of a successor to such
Person by consolidation or merger or as a transferee of its assets, any
earnings of such successor prior to such consolidation, merger or transfer of
assets, and (9) any deferred credit representing the excess of equity in
any Subsidiary of such Person at the date of acquisition of such Subsidiary
over the cost to such Person of the investment in such Subsidiary.

 

“EMU
Legislation” means the legislative measures of the European Council for the
introduction of, changeover to or operation of a single or unified European
currency.

 

“Environmental
Laws” means all applicable federal, state, provincial, local and foreign
laws, statutes, ordinances, codes, rules, standards, orders-in-council,
regulations and any applicable judicial or administrative interpretation
thereof, including any applicable judicial or administrative order, consent
decree, order or judgment, imposing liability or standards of conduct for or
relating to the regulation and protection of human health, safety, the
environment and natural resources (including ambient air, surface water,
groundwater, wetlands, land surface or subsurface strata, wildlife, aquatic
species and vegetation).  Environmental
Laws include the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. §§ 9601 et seq.) (“CERCLA”); the
Hazardous Materials Transportation Authorization Act of 1994 (49 U.S.C. §§ 5101
et seq.); the Federal Insecticide, Fungicide, and Rodenticide Act (7
U.S.C. §§ 136 et seq.); the Solid Waste Disposal Act (42 U.S.C.
§§ 6901 et seq.); the Toxic Substance Control Act (15 U.S.C. §§
2601 et seq.); the Clean Air Act (42 U.S.C. §§ 7401 et seq.); the
Federal Water Pollution Control Act (33 U.S.C. §§ 1251 et seq.); the
Occupational Safety and Health Act (29 U.S.C. §§ 651 et seq.); and the
Safe Drinking Water Act (42 U.S.C. §§ 300(f) et seq.), and any
and all regulations promulgated thereunder, and all analogous state, local,
provincial and foreign counterparts or equivalents and any transfer of
ownership notification or approval statutes relating to the protection of human
health, safety, or the environment.

 

“Environmental
Liabilities” means, with respect to any Person, all liabilities,
obligations, responsibilities, response, remedial and removal costs,
investigation and feasibility study costs, capital costs, operation and
maintenance costs, losses, damages, punitive damages, property damages, natural
resource damages, consequential damages, treble damages, costs and expenses
(including all reasonable fees, disbursements and expenses of counsel, experts
and consultants), fines, penalties, sanctions and interest incurred as a result
of or related to any claim, suit, action, investigation, proceeding or demand
by any Person, whether based in contract, tort, implied or express warranty,
strict liability, criminal or civil statute or common law, arising under or
related to any Environmental Laws, Environmental Permits, or as a result of any
Release or threatened Release or presence of a Hazardous Material whether on,
at, in, under, from or about or in the vicinity of any real or personal
property.

 

A-9

 

“Environmental
Permits” means all permits, licenses, authorizations, certificates,
approvals or registrations required by any Governmental Authority under any
Environmental Laws.

 

“Equipment”
means all “equipment,” as such term is defined in the Code, now owned or
hereafter acquired by any Credit Party, wherever located and, in any event,
including all such Credit Party’s machinery and equipment, including processing
equipment, conveyors, machine tools, data processing and computer equipment,
including embedded Software and peripheral equipment and all engineering,
processing and manufacturing equipment, office machinery, furniture, materials
handling equipment, tools, attachments, accessories, automotive equipment,
trailers, trucks, forklifts, molds, dies, stamps, motor vehicles, rolling stock
and other equipment of every kind and nature, trade fixtures and fixtures not
forming a part of real property, together with all additions and accessions
thereto, replacements therefor, all parts therefor, all substitutes for any of
the foregoing, fuel therefor, and all manuals, drawings, instructions,
warranties and rights with respect thereto, and all products and proceeds
thereof and condemnation awards and insurance proceeds with respect thereto.

 

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

 

“ERISA
Affiliate” means, with respect to any Credit Party, any trade or business
(whether or not incorporated) that, together with such Credit Party, are
treated as a single employer within the meaning of Sections 414(b), (c), (m) or
(o) of the IRC.

 

“ERISA
Event” means, with respect to any Credit Party or any ERISA Affiliate, (a) any
event described in Section 4043(c) of ERISA with respect to a Title
IV Plan (other than an event for which the thirty (30) day notice period is
waived); (b) the withdrawal of any Credit Party or ERISA Affiliate from a
Title IV Plan subject to Section 4063 of ERISA during a plan year in which
it was a substantial employer, as defined in Section 4001(a)(2) of
ERISA; (c) the complete or partial withdrawal of any Credit Party or any
ERISA Affiliate from any Multiemployer Plan; (d) the filing of a notice of
intent to terminate a Title IV Plan or the treatment of a plan amendment as a
termination under Section 4041 of ERISA; (e) the institution of
proceedings to terminate a Title IV Plan or Multiemployer Plan by the PBGC; (f) the
failure by any Credit Party or ERISA Affiliate to make when due required
contributions to a Multiemployer Plan or Title IV Plan unless such failure is
cured within thirty (30) days; (g) the termination of a Multiemployer Plan
under Section 4041A of ERISA or the reorganization or insolvency of a
Multiemployer Plan under Section 4241 or 4245 of ERISA; or (h) the
loss of a Qualified Plan’s qualification or tax exempt status; or (i) the
termination of a Plan described in Section 4064 of ERISA.

 

“ESOP”
means a Plan that is intended to satisfy the requirements of Section 4975(e)(7) of
the IRC.

 

“Euro”
means the single currency of the European Union as constituted by the Treaty on
European Union and as referred to in the EMU Legislation.

 

“Event
of Default” has the meaning ascribed to it in Section 8.1.

 

A-10

 

“Excess
Cash Flow” means, without duplication, with respect to any Fiscal Year of
Holdings and its Subsidiaries, consolidated net income plus (a) depreciation,
amortization and Interest Expense to the extent deducted in determining
consolidated net income, minus (b) Capital Expenditures during such
Fiscal Year (excluding the financed portion thereof and excluding any Capital
Expenditures in such Fiscal Year to the extent in excess of the amount
permitted to be made in such Fiscal Year pursuant to clause (a) of Annex
G), minus (c) Interest Expense paid or accrued (excluding any
original issue discount, interest paid in kind or amortized debt discount, to
the extent included in determining Interest Expense) and scheduled  and voluntary principal payments paid or
payable in respect of Funded Debt, plus or minus (as the case may
be), (d) extraordinary gains or losses which are cash items not included
in the calculation of net income, minus (e) mandatory prepayments
paid in cash pursuant to Section 1.3 other than mandatory
prepayments made pursuant to Sections 1.3(b)(i), 1.3(b)(ii), 1.3(b)(iv) or
1.3(d), plus (f) taxes deducted in determining consolidated net
income to the extent not paid for in cash.

 

“Excluded
Proceeds” means:

 

(a)           the proceeds of asset dispositions
under Section 6.8(a),

 

(b)           the proceeds of asset dispositions
under Sections 6.8(b) and (d) in an aggregate amount
not to exceed $1,000,000 per year so long as no Default or Event of Default has
occurred and is continuing, and

 

(c)           to the extent the aggregate amount of
proceeds of asset dispositions under Sections 6.8(b) and (d) exceed
$1,000,000 in any year, the proceeds of each asset disposition, or series of
related asset dispositions, under Section 6.8(b) or (d) after
meeting such threshold if the gross proceeds with respect thereto are less than
$100,000 per asset disposition, or series of related asset dispositions, in
each case, so long as no Default or Event of Default exists.

 

“Excluded
Stock Issuances” means (a) issuances of Stock by Holdings in
connection with the exercise of options by any current or former employee or
director, (b) issuances of Stock by Holdings to current or former
employees in the form of restricted stock awards in the ordinary course of
business, (c) issuances of Stock by Holdings to sellers in connection
with, and as the purchase price for, Permitted Acquisitions and (d) issuances
of Stock, the net proceeds of which are used within 180 days of the issuance
thereof in connection with, and as the purchase price for, Permitted
Acquisitions or other permitted investments, so long as no later than the
Business Day following receipt of the proceeds thereof Borrower Representative
delivers to Agent a certificate (a “Notice of Stock Issuance for Permitted
Acquisition”) confirming that (A) the Credit Parties intend to invest
such net proceeds in a Permitted Acquisition or other permitted investment
within 180 days (the “Investment Period”) of the issuance of such Stock
and (B) such net proceeds have been (x) deposited into an account
that is subject to a Control Letter or a control agreement meeting the
requirements of Annex C, which net proceeds when so deposited (1) shall
constitute Collateral, securing the payment of the Obligations then
outstanding, (2) may be withdrawn by the applicable Credit Party solely to
make a Permitted Acquisition or other permitted investment within 180 days of
the date of the issuance of such Stock or (y) used to repay the Revolving
Loan (in whole or in part) on a temporary basis and if so used to repay the
Revolving Loan and notwithstanding anything herein 

 

A-11

 

to the contrary such amount may be reborrowed only for
the purpose of funding such Permitted Acquisition or if the Investment Period
has expired and such amount has not been used to make a Permitted Acquisition
to make the mandatory prepayment required by Section 1.3(b)(iii);
provided, that upon the occurrence and during the continuance of an Event of
Default or upon the expiration of such 180 day Investment Period without such
net proceeds being used to fund a Permitted Acquisition, an amount equal to
such net proceeds shall be applied to the repayment of the Obligations as set
forth in Section 1.3(b)(iii) and such net proceeds shall not
be deemed to be “Excluded Stock Proceeds.

 

“Existing
Term Loan” has the meaning assigned to it in Section 1.1(b)(i).

 

“Existing
Term Loan Commitment” means (a) as to any Lender with a Existing Term
Loan Commitment, the commitment of such Lender to make its Pro Rata Share of
the Existing Term Loan as set forth on Annex J to the Agreement as in
effect as of the Closing Date, and (b) as to all Lenders with a Existing
Term Loan Commitment, the aggregate commitment of all Lenders to make the
Existing Term Loan, which aggregate commitment shall be Three Million Nine
Hundred Thirty-Seven Thousand Eight Hundred Ninety-Three and  06/100 Dollars ($3,937,893.06) on the Closing
Date.

 

“Existing
Term Loan Note” has the meaning assigned to it in Section 1.1(b)(i).

 

“Extending
Term Loan” has the meaning assigned to it in Section 1.1(b)(ii).

 

“Extending
Term Loan Commitment” means (a) as to any Lender with a Extending Term
Loan Commitment, the commitment of such Lender to make its Pro Rata Share of
the Extending Term Loan as set forth on Annex J to the Agreement as in
effect as of the Closing Date, and (b) as to all Lenders with a Extending
Term Loan Commitment, the aggregate commitment of all Lenders to make the
Extending Term Loan, which aggregate commitment shall be One Hundred Three
Million Five Hundred Twenty-Seven Thousand Four Hundred Eight and 78/100
Dollars ($103,527,408.78) on the Closing Date.

 

“Extending
Term Loan Note” has the meaning assigned to it in Section 1.1(b)(ii).

 

“Fair
Labor Standards Act” means the Fair Labor Standards Act, 29 U.S.C. §201 et
seq.

 

“Federal Funds Rate” means, for any day, a
floating rate equal to the weighted average of the rates on overnight Federal
funds transactions among members of the Federal Reserve System, as determined
by Agent in its sole discretion, which determination shall be final, binding
and conclusive (absent manifest error).

 

“Federal
Reserve Board” means the Board of Governors of the Federal Reserve System.

 

“Fees”
means any and all fees payable to Agent or any Lender pursuant to the Agreement
or any of the other Loan Documents.

 

“Financial
Covenants” means the financial covenants set forth in Annex G.

 

A-12

 

“Financial
Statements” means the consolidated and, as applicable, separate income
statements, statements of cash flows and balance sheets of Holdings and its
Subsidiaries delivered in accordance with Section 3.4 and Annex
E.

 

“Fiscal
Month” means any of the monthly accounting periods of Credit Parties.

 

“Fiscal
Quarter” means any of the quarterly accounting periods of Credit Parties,
ending on March 31, June 30, September 30 and December 31
of each year.

 

“Fiscal
Year” means any of the annual accounting periods of Credit Parties ending
on December 31 of each year.

 

“Fixed Charge Coverage Ratio” means, with
respect to any Person for any fiscal period, the ratio of EBITDA to Fixed
Charges.

 

“Fixed
Charges” means, with respect to any Person for any fiscal period, (a) the
aggregate of all Interest Expense paid during such period (excluding all
non-cash Interest Expense), plus (b) scheduled payments of principal with
respect to Indebtedness during such period, plus (c) Capital Expenditures
during such period, plus (d) the greater of (i) cash payments of
income taxes and capital taxes (net of tax refunds received during such
period), and (ii) zero, plus (e) Restricted Payments made pursuant to
Section 6.14(f).

 

“Fixtures”
means all “fixtures” as such term is defined in the Code and all fixtures,
facilities and equipment howsoever affixed or attached to real property, now
owned or hereafter acquired by any Credit Party.

 

“Foreign
Lender” has the meaning ascribed to it in Section 1.15 of the
Agreement.

 

“Foreign
Pledge Agreements” means, collectively, (i) that certain Commercial
Pledge Agreement over Shares executed by Blount, Inc. in favor of Agent,
on behalf of itself and Lenders, pledging 65% of all of the Stock of Blount
Europe, S.A., a company formed under the laws of Belgium, (ii) that
certain Quota Pledge Agreement executed by Blount, Inc. in favor of Agent,
on behalf of itself and Lenders, pledging 65% of all of the Stock of Blount
Industrial, Ltda., a company formed under the laws of Brazil, (iii) that
certain Share Pledge Agreement executed by Blount, Inc. in favor of Agent,
on behalf of itself and Lenders, pledging 65% of all of the Stock of Svenska
Blount Aktiebolag, a company formed under the laws of Sweden, (iv) that
certain Agreement on the Pledge of Shares executed by Blount, Inc. in
favor of Agent, on behalf of itself and Lenders, pledging 65% of all of the
Stock of Blount GmbH, a company formed under the laws of Germany, and (v) that
certain Pledge Over Interests executed by Blount, Inc. in favor of Agent,
on behalf of itself and Lenders, pledging 65% of all of the Stock of Blount
China.

 

“Foreign
Subsidiary” means any Subsidiary of a Credit Party that is not formed under
the laws of the United States or any state thereof.

 

A-13

 

“Forestry
Division” means the Borrowers’ Industrial and Power Equipment Group,
Forestry Division, other than the Borrowers’ real and personal property and
facilities previously located in Menominee, Michigan.

 

“Funded Debt” means, with respect to any
Person, without duplication, all Indebtedness for borrowed money evidenced by
notes, bonds, debentures, or similar evidences of Indebtedness that by its
terms matures more than one year from, or is directly or indirectly renewable
or extendible at such Person’s option under a revolving credit or similar
agreement obligating the lender or lenders to extend credit over a period of
more than one year from the date of creation thereof (but only to the extent
borrowed thereunder), and specifically including Capital Lease Obligations,
current maturities of long-term debt, revolving credit and short-term debt
extendible beyond one year at the option of the debtor, and also including, in
the case of Credit Parties, the Obligations (other than Obligations under Hedge
Agreements that are not yet due and payable) and, without duplication,
Guaranteed Indebtedness consisting of guaranties of Funded Debt of other
Persons.

 

“GAAP”
means generally accepted accounting principles in the United States of America
consistently applied, as such term is further defined in Annex G to the
Agreement.

 

“Gear”
has the meaning ascribed to it in the preamble of the Agreement.

 

“GE
Capital” means General Electric Capital Corporation, a Delaware
corporation.

 

“GE
Capital Fee Letter” has the meaning ascribed to it in Section 1.9(a) of
the Agreement.

 

“General
Intangibles” means all “general intangibles,” as such term is defined in
the Code, now owned or hereafter acquired by any Credit Party, including all
right, title and interest that such Credit Party may now or hereafter have in
or under any Contract, all payment intangibles, customer lists, Licenses,
Copyrights, Trademarks, Patents, and all applications therefor and reissues,
extensions or renewals thereof, rights in Intellectual Property, interests in
partnerships, joint ventures and other business associations, licenses,
permits, copyrights, trade secrets, proprietary or confidential information,
inventions (whether or not patented or patentable), technical information,
procedures, designs, knowledge, know-how, Software, data bases, data, skill,
expertise, experience, processes, models, drawings, materials and records,
goodwill (including the goodwill associated with any Trademark or Trademark
License), all rights and claims in or under insurance policies (including
insurance for fire, damage, loss and casualty, whether covering personal
property, real property, tangible rights or intangible rights, all liability,
life, key man and business interruption insurance, and all unearned premiums),
uncertificated securities, choses in action, deposit, checking and other bank
accounts, rights to receive tax refunds and other payments, rights to receive
dividends, distributions, cash, Instruments and other property in respect of or
in exchange for pledged Stock and Investment Property, rights of indemnification,
all books and records, correspondence, credit files, invoices and other papers,
including without limitation all tapes, cards, computer runs and other papers
and documents in the possession or under the control of such Credit Party or
any computer bureau or service company from time to time acting for such Credit
Party.

 

A-14

 

“Goods”
means all “goods” as defined in the Code, now owned or hereafter acquired by
any Credit Party, wherever located, including embedded Software to the extent
included in “goods” as defined in the Code, manufactured homes, standing timber
that is cut and removed for sale and unborn young of animals.

 

“Governmental
Authority” means any nation or government, any state or other political
subdivision thereof, and any agency, department or other entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.

 

“Guaranteed
Indebtedness” means as to any Person, any obligation of such Person
guaranteeing, providing comfort or otherwise supporting any Indebtedness,
lease, dividend, or other obligation (“primary obligation”) of any other
Person (the “primary obligor”) in any manner, including any obligation
or arrangement of such Person to (a) purchase or repurchase any such
primary obligation, (b) advance or supply funds (i) for the purchase
or payment of any such primary obligation or (ii) to maintain working
capital or equity capital of the primary obligor or otherwise to maintain the
net worth or solvency or any balance sheet condition of the primary obligor, (c) purchase
property, securities or services primarily for the purpose of assuring the
owner of any such primary obligation of the ability of the primary obligor to
make payment of such primary obligation, (d) protect the beneficiary of
such arrangement from loss (other than product warranties given in the ordinary
course of business) or (e) indemnify the owner of such primary obligation
against loss in respect thereof except for such indemnifications created in the
ordinary course of business pursuant to transactions that are not otherwise
prohibited hereunder or under the other Loan Documents.  The amount of any Guaranteed Indebtedness at
any time shall be deemed to be an amount equal to the lesser at such time of (x) the
stated or determinable amount of the primary obligation in respect of which
such Guaranteed Indebtedness is incurred and (y) the maximum amount for
which such Person may be liable pursuant to the terms of the instrument
embodying such Guaranteed Indebtedness, or, if not stated or determinable, the
maximum reasonably anticipated liability (assuming full performance) in respect
thereof.

 

“Guaranties”
means, collectively, the Guaranty and any other guaranty executed by any
Guarantor in favor of Agent in respect of the Obligations.

 

“Guarantors”
means Holdings and each domestic Subsidiary of any Credit Party and each other
Person, if any, that executes a guaranty or other similar agreement in favor of
Agent, for itself and the ratable benefit of Lenders, in connection with the
transactions contemplated by the Agreement and the other Loan Documents.

 

“Guaranty”
means that certain Guaranty dated as of May 15, 2003 from each Credit
Party signatory thereto in favor of Agent, on behalf of itself and Lenders, as
amended, restated, supplemented or otherwise modified from time to time.

 

“Hazardous
Material” means any substance, material or waste regulated by, or forming
the basis of liability under, any Environmental Laws, including any material or
substance that is (a) defined as a “solid waste,” “hazardous waste,” “hazardous
material,” “hazardous substance,” “dangerous goods,” “extremely hazardous
waste,”  “restricted hazardous waste,” “pollutant,”
“contaminant,” “hazardous constituent,” “special waste,” “toxic substance” 

 

A-15

 

or other similar term or phrase under any
Environmental Laws, or (b) petroleum or any fraction or by-product
thereof, asbestos, polychlorinated biphenyls (PCB’s), or any radioactive
substance.

 

“Hedge
Agreement” shall mean any and all transactions, agreements or documents now
existing or hereafter entered into between or among any Credit Party, on the
one hand, and a Lender (or an Affiliate of a Lender), on the other hand, which
provides for an interest rate, credit or equity swap, cap, floor, collar,
forward foreign exchange transaction, currency swap, cross currency rate swap,
currency option, or any combination of, or option with respect to, these or
similar transactions, for the purpose of hedging such Credit Party’s exposure
to fluctuations in interest or exchange rates, loan, credit exchange, security
or currency valuations.

 

“Holdings”
means Blount International, Inc., a Delaware corporation.

 

“Impacted
Lender” means any Lender that fails to promptly provide any Borrower or
Agent, upon such Person’s request, reasonably satisfactory assurance that such
Lender will not become a Non-Funding Lender.

 

“Indebtedness”
means, with respect to any Person, without duplication, (a) all
indebtedness of such Person for borrowed money or for the deferred purchase
price of property payment for which is deferred 6 months or more, but excluding
obligations to trade creditors incurred in the ordinary course of business, (b) all
reimbursement and other obligations with respect to letters of credit, bankers’
acceptances and surety bonds, whether or not matured, (c) all obligations
evidenced by notes, bonds, debentures or similar instruments, (d) all
indebtedness created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such Person (even
though the rights and remedies of the seller or lender under such agreement in
the event of default are limited to repossession or sale of such property), (e) all
Capital Lease Obligations and the present value (discounted at the Index Rate
as in effect on the Closing Date) of future rental payments under all synthetic
leases, (f) all obligations of such Person under commodity purchase or
option agreements or other commodity price hedging arrangements, in each case
whether contingent or matured, (g) all obligations of such Person under
any foreign exchange contract, currency swap agreement, interest rate swap, cap
or collar agreement or other similar agreement or arrangement designed to alter
the risks of that Person arising from fluctuations in currency values or
interest rates, in each case whether contingent or matured, (h) all
Indebtedness referred to above secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by)
any Lien upon or in property or other assets (including accounts and contract
rights) owned by such Person, even though such Person has not assumed or become
liable for the payment of such Indebtedness, and (i) the Obligations.

 

“Indemnified
Liabilities” has the meaning ascribed to it in Section 1.13.

 

“Indemnified
Person” has the meaning ascribed to it in Section 1.13.

 

“Index
Rate” means:

 

(a) with
respect to any Revolving Loan bearing interest at the Index Rate, for any day,
a rate per annum equal to the highest of (i) the rate last quoted by The
Wall Street Journal as 

 

A-16

 

the “Prime Rate” in the United States or, if The Wall
Street Journal ceases to quote such rate, the highest per annum interest rate
published by the Federal Reserve Board in Federal Reserve Statistical Release
H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate, or, if such
rate is no longer quoted therein, any similar rate quoted therein (as
reasonably determined by Agent) or any similar release by the Federal Reserve
Board (as reasonably determined by Agent), (ii) the sum of (A) the
Federal Funds Rate, plus (B) 3.00% per annum and (iii) the sum of (A) the
LIBOR Rate with respect to Revolving Loans, plus (B) the excess of the
Applicable Revolver LIBOR Margin over the Applicable Revolver Index Margin, in
each instance, as of such day;

 

(b) with
respect to any Extending Term Loan bearing interest at the Index Rate, for any
day, a rate per annum equal to the highest of (i) the rate last quoted by
The Wall Street Journal as the “Prime Rate” in the United States or, if The
Wall Street Journal ceases to quote such rate, the highest per annum interest
rate published by the Federal Reserve Board in Federal Reserve Statistical
Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate, or,
if such rate is no longer quoted therein, any similar rate quoted therein (as reasonably
determined by Agent) or any similar release by the Federal Reserve Board (as
reasonably determined by Agent), (ii) the sum of (A) the Federal
Funds Rate, plus (B) 3.00% per annum and (iii) the sum of (A) the
LIBOR Rate with respect to the Extending Term Loan calculated for each day
based on a LIBOR Period of one (1) month determined two (2) Business
Days prior to such day, plus (B) the excess of the Applicable Extending
Term Loan LIBOR Margin over the Applicable Extending Term Loan Index Margin, in
each instance, as of such day; and

 

(c) with
respect to any Existing Term Loan bearing interest at the Index Rate, for any
day, a floating rate equal to the higher of (i) the rate publicly quoted
from time to time by The Wall Street Journal as the “base rate on corporate
loans posted by at least 75.00% of the nation’s 30 largest banks” (or, if The
Wall Street Journal ceases quoting a base rate of the type described, the
highest per annum rate of interest published by the Federal Reserve Board in
Federal Reserve statistical release H.15 (519) entitled “Selected Interest
Rates” as the Bank prime loan rate or its equivalent), and (ii) the
Federal Funds Rate plus 50 basis points per annum.

 

Each
change in any interest rate provided for in the Agreement based upon the Index
Rate shall take effect at the time of such change in the Index Rate.

 

“Index
Rate Loan” means a Loan denominated in Dollars or portion thereof bearing
interest by reference to the Index Rate.

 

“Insolvency
Laws” means any of the Bankruptcy Code, as now and hereafter in effect, any
successors to such statutes and any other applicable insolvency or other
similar law of any jurisdiction including, without limitation, any law of any
jurisdiction permitting a debtor to obtain a stay or a compromise of the claims
of its creditors against it.

 

“Instruments”
means all “instruments,” as such term is defined in the Code, now owned or
hereafter acquired by any Credit Party, wherever located, and, in any event,
including all certificated securities, all certificates of deposit, and all
promissory notes and other evidences of indebtedness, other than instruments
that constitute, or are a part of a group of writings that constitute, Chattel
Paper.

 

A-17

 

“Intellectual
Property” means any and all Licenses, Patents, Designs, Copyrights,
Trademarks, the goodwill associated with such Trademarks, trade secrets and
customer lists.

 

“Intercompany
Notes” has the meaning ascribed to it in Section 6.3.

 

“Interest
Expense” means, with respect to any Person for any fiscal period, interest
expense (whether cash or non-cash) of such Person determined in accordance with
GAAP for the relevant period ended on such date, including, interest expense
with respect to any Funded Debt of such Person and interest expense for the
relevant period that has been capitalized on the balance sheet of such Person.

 

“Interest
Payment Date” means (a) as to any Index Rate Loan, the first Business
Day of each month to occur while such Loan is outstanding, and (b) as to
any LIBOR Loan, the last day of the applicable LIBOR Period; provided
that, in addition to the foregoing, each of (x) the date upon which all of
the Commitments have been terminated and the Loans have been paid in full and (y) the
Commitment Termination Date shall be deemed to be an “Interest Payment Date”
with respect to any interest that has then accrued under the Agreement.

 

“Inventory”
means all “inventory,” as such term is defined in the Code, now owned or
hereafter acquired by any Credit Party, wherever located, and in any event
including inventory, merchandise, goods and other personal property that are
held by or on behalf of any Credit Party for sale or lease or are furnished or
are to be furnished under a contract of service, or that constitute raw
materials, work in process, finished goods, returned goods, or materials or
supplies of any kind, nature or description used or consumed or to be used or
consumed in such Credit Party’s business or in the processing, production,
packaging, promotion, delivery or shipping of the same, including all supplies
and embedded Software.

 

“Investment
Property” means all “investment property” as such term is defined in the
Code now owned or hereafter acquired by any Credit Party, wherever located,
including (i) all securities, whether certificated or uncertificated,
including stocks, bonds, interests in limited liability companies, partnership
interests, treasuries, certificates of deposit, and mutual fund shares; (ii) all
securities entitlements of any Credit Party, including the rights of any Credit
Party to any securities account and the financial assets held by a securities
intermediary in such securities account and any free credit balance or other
money owing by any securities intermediary with respect to that account; (iii) all
securities accounts of any Credit Party; (iv) all commodity contracts of
any Credit Party; and (v) all commodity accounts held by any Credit Party.

 

“IRC”
means the Internal Revenue Code of 1986, as amended, and all regulations
promulgated thereunder.

 

“IRS”
means the Internal Revenue Service.

 

“L/C Issuer” has the meaning ascribed to it in Annex
B.

 

“L/C
Sublimit” has the meaning ascribed to it in Annex B.

 

A-18

 

“Lender-Related Distress
Event” means,
with respect to any Lender or any Person that directly or indirectly controls
such Lender (each a “Distressed Person”), a voluntary or involuntary
case with respect to such Distressed Person under the Bankruptcy Code or any
similar bankruptcy laws of its jurisdiction of formation, or a custodian,
conservator, receiver or similar official is appointed for such Distressed
Person or any substantial part of such Distressed Person’s assets, or such
Distressed Person or any Person that directly or indirectly controls such
Distressed Person is subject to a forced liquidation, merger, sale or other
change of majority control supported in whole or in part by guaranties or other
support (including, without limitation, the nationalization or assumption of
majority ownership or operating control by) the U.S. government or other
Governmental Authority, or such Distressed Person makes a general assignment
for the benefit of creditors or is otherwise adjudicated as, or determined by any
Governmental Authority having regulatory authority over such Distressed Person
or its assets to be, insolvent, bankrupt, or deficient in meeting any capital
adequacy or liquidity standard of any such Governmental Authority.  For purposes of this definition, control of a
Person shall have the same meaning as in the second sentence of the definition
of “Affiliate”.

 

“Lenders” means GE Capital and the other
Lenders named on the signature pages of the Agreement, and, if any such
Lender shall decide to assign all or any portion of the Obligations, such term
shall include any assignee of such Lender.

 

“Letter
of Credit Fee” has the meaning ascribed to it in Annex B.

 

“Letter of Credit Obligations” means all
outstanding obligations incurred by Agent and Revolving Lenders at the request
of Borrower Representative, whether direct or indirect, contingent or
otherwise, due or not due, in connection with the issuance of Letters of Credit
by Agent or another L/C Issuer or the purchase of a participation as set forth in
Annex B with respect to any Letter of Credit.  The amount of such Letter of Credit
Obligations shall equal the maximum amount that may be payable at such time or
at any time thereafter by Agent or Revolving Lenders thereupon or pursuant
thereto.

 

“Letter-of-Credit
Rights” means “letter-of-credit rights” as such term is defined in the
Code, now owned or hereafter acquired by any Credit Party, including rights to
payment or performance under a letter of credit, whether or not such Credit
Party, as beneficiary, has demanded or is entitled to demand payment or
performance.

 

“Letters
of Credit” means documentary or standby letters of credit issued for the
account of any Borrower by any L/C Issuer, and bankers’ acceptances issued by
any Borrower, for which Agent and Lenders have incurred Letter of Credit
Obligations.  The term does not include a
Swap Related L/C.

 

 “Leverage Ratio” means, with respect to
Holdings, on a consolidated basis, the ratio of (a) Funded Debt as of any
date of determination to (b) the sum of EBITDA for the twelve months
ending on that date of determination.

 

 “LIBOR Business Day” means a Business
Day on which banks in the City of London are generally open for interbank or
foreign exchange transactions.

 

A-19

 

“LIBOR
Loan” means a Loan or any portion thereof bearing interest by reference to
the LIBOR Rate.

 

“LIBOR
Period” means, with respect to any LIBOR Loan, each period commencing on a
LIBOR Business Day selected by Borrower Representative pursuant to the
Agreement and ending one, two or three months thereafter, as selected by
Borrower Representative’s irrevocable notice to Agent as set forth in Section 1.5(e);
provided, that the foregoing provision relating to LIBOR Periods is
subject to the following:

 

(a)           if any LIBOR Period would otherwise
end on a day that is not a LIBOR Business Day, such LIBOR Period shall be
extended to the next succeeding LIBOR Business Day unless the result of such
extension would be to carry such LIBOR Period into another calendar month in
which event such LIBOR Period shall end on the immediately preceding LIBOR
Business Day;

 

(b)           any LIBOR Period that would otherwise
extend beyond the Commitment Termination Date shall end 2 LIBOR Business Days
prior to such date;

 

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

 

(d)           Borrower Representative shall select
LIBOR Periods so as not to require a payment or prepayment of any LIBOR Loan
during a LIBOR Period for such Loan; and

 

(e)           Borrower Representative shall select
LIBOR Periods so that there shall be no more than 5 separate LIBOR Loans in
existence at any one time.

 

“LIBOR
Rate” means for each LIBOR Period, a rate of interest determined by Agent
equal to:

 

(a) with
respect to each Revolving Loan bearing interest at the LIBOR Rate, for each
LIBOR Period, a rate of interest determined by Agent equal to the greater of
(i)(A) the offered rate for deposits of Dollars for a three-month LIBOR
Period that appears on Reuters Screen LIBOR01 Page as of 11:00 A.M.
(London, England time) two (2) Business Days prior to the first day in
each LIBOR Period; divided by (B) a number equal to 1.0 minus the
aggregate (but without duplication) of the rates (expressed as a decimal
fraction) of reserve requirements in effect on the day that is 2 LIBOR Business
Days prior to the beginning of such LIBOR Period (including basic,
supplemental, marginal and emergency reserves under any regulations of the
Federal Reserve Board or other Governmental Authority having jurisdiction with
respect thereto, as now and from time to time in effect) for Eurocurrency
funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of
the Federal Reserve Board that are required to be maintained by a member bank
of the Federal Reserve System; and (ii) 2.50%.  If no such offered rate exists with respect to
any Revolving Loan,
such rate shall be the rate of interest per annum, as determined by Agent and
Borrower Representative (rounded upwards, if necessary, to the nearest 1/100 of
1.00%) at which deposits of Dollars in immediately available funds are offered
at 11:00 A.M. (London, England time) two (2) Business Days prior to
the first day in the 

 

A-20

 

applicable LIBOR Period by major financial
institutions reasonably satisfactory to Agent in the London interbank market
for the applicable LIBOR Period and for an amount equal or comparable to the
principal amount of the Revolving Loans to be borrowed, converted or continued
as a LIBOR Loan on such date of determination;

 

(b) 
with respect to each term loan comprising the Extending Term Loan bearing
interest at the LIBOR Rate, for each LIBOR Period, a rate of interest
determined by Agent equal to the greater of (i)(A) the offered rate for
deposits of Dollars for the applicable LIBOR Period that appears on Reuters
Screen LIBOR01 Page as of 11:00 A.M. (London, England time) two (2) Business
Days prior to the first day in each LIBOR Period; divided by (B) a number
equal to 1.0 minus the aggregate (but without duplication) of the rates
(expressed as a decimal fraction) of reserve requirements in effect on the day
that is 2 LIBOR Business Days prior to the beginning of such LIBOR Period
(including basic, supplemental, marginal and emergency reserves under any
regulations of the Federal Reserve Board or other Governmental Authority having
jurisdiction with respect thereto, as now and from time to time in effect) for
Eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in
Regulation D of the Federal Reserve Board that are required to be maintained by
a member bank of the Federal Reserve System; and (ii) 2.00%.  If no such offered rate exists with respect to
any loans comprising the Extending Term Loan, such rate shall be the rate of interest per annum,
as determined by Agent and Borrower Representative (rounded upwards, if
necessary, to the nearest 1/100 of 1.00%) at which deposits of Dollars in
immediately available funds are offered at 11:00 A.M. (London, England
time) two (2) Business Days prior to the first day in the applicable LIBOR
Period by major financial institutions reasonably satisfactory to Agent in the
London interbank market for the applicable LIBOR Period and for an amount equal
or comparable to the principal amount of the Extending Term Loan to be
borrowed, converted or continued as a LIBOR Loan on such date of determination;
or

 

(c) 
with respect to each term loan comprising the Existing Term Loan bearing
interest at the LIBOR Rate, for each LIBOR Period, a rate of interest
determined by Agent equal to: (i) the offered rate for deposits in US
Dollars for the applicable LIBOR Period that appears on Telerate Page 3750
as of 11:00 a.m. (London time), on the second full LIBOR Business Day next
preceding the first day of such LIBOR Period (unless such date is not a
Business Day, in which event the next succeeding Business Day will be used);
divided by (ii) a number equal to 1.0 minus the aggregate (but
without duplication) of the rates (expressed as a decimal fraction) of reserve
requirements in effect on the day that is 2 LIBOR Business Days prior to the
beginning of such LIBOR Period (including basic, supplemental, marginal and
emergency reserves under any regulations of the Federal Reserve Board or other
Governmental Authority having jurisdiction with respect thereto, as now and from
time to time in effect) for Eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Federal Reserve Board that are required to
be maintained by a member bank of the Federal Reserve System.  With respect to the loans comprising the
Existing Term Loan, if such interest rates shall cease to be available from
Reuters, the LIBOR Rate shall be determined from such financial reporting
service or other information as shall be mutually acceptable to Agent and
Borrower Representative.

 

A-21

 

“License”
means any Copyright License, Patent License, Design License, Trademark License
or other license of rights or interests now held or hereafter acquired by any
Credit Party.

 

“Lien”
means any mortgage or deed of trust, pledge, hypothecation, assignment, deposit
arrangement, lien, charge, claim, security interest, easement or encumbrance,
or preference, priority or other security agreement or preferential arrangement
of any kind or nature whatsoever (including any lease or title retention
agreement, any financing lease having substantially the same economic effect as
any of the foregoing, and the filing of, or agreement to give, any financing
statement perfecting a security interest under the Code or comparable law of
any jurisdiction).

 

“Litigation”
has the meaning ascribed to it in Section 3.13.

 

“Loan
Account” has the meaning ascribed to it in Section 1.12.

 

“Loan
Documents” means the Agreement, any Notes, the Collateral Documents, the
Master Standby Agreement, the Master Documentary Agreement, and all other
agreements, instruments, documents and certificates identified in the Closing
Checklist executed and delivered to, or in favor of, Agent or any Lenders and
including all other pledges, powers of attorney, consents, assignments,
contracts, notices, and all other written matter whether heretofore, now or
hereafter executed by or on behalf of any Credit Party, or any employee of any
Credit Party, and delivered to Agent or any Lender in connection with the
Agreement or the transactions contemplated thereby.  Any reference in the Agreement or any other
Loan Document to a Loan Document shall include all appendices, exhibits or
schedules thereto, and all amendments, restatements, supplements or other
modifications thereto, and shall refer to the Agreement or such Loan Document
as the same may be in effect at any and all times such reference becomes
operative.  Notwithstanding the
foregoing, none of the Hedge Agreements shall constitute Loan Documents.

 

“Loans”
means the Revolving Loan, the Swing Line Loan, the Existing Term Loan and the
Extending Term Loan; and “Loan” means any one of the foregoing Loans.

 

“Lock
Boxes” has the meaning ascribed to it in Annex C.

 

“Margin
Stock” has the meaning ascribed to in Section 3.10.

 

“Master
Documentary Agreement” means the Master Agreement for Documentary Letters
of Credit dated as of May 15, 2003 among Borrowers, as Applicant(s), and
GE Capital, as amended, restated, supplemented or otherwise modified from time
to time.

 

“Master
Standby Agreement” means the Master Agreement for Standby Letters of Credit
dated as of May 15, 2003 among Borrowers, as Applicant(s), and GE Capital,
as issuer, as amended, restated, supplemented or otherwise modified from time to
time.

 

“Material
Adverse Effect” means a material adverse effect on (a) the business,
assets, operations, prospects or financial or other condition of the Credit
Parties considered as a whole, (b) any Borrower’s ability to pay any of
the Loans or any of the other Obligations in 

 

A-22

 

accordance with the terms of the Agreement, (c) the
Collateral or Agent’s Liens, on behalf of itself and Lenders on the Collateral
or the priority of such Liens, or (d) Agent’s or any Lender’s rights and
remedies under the Agreement and the other Loan Documents.

 

 “Maximum Amount” means, as of any date
of determination, an amount equal to the Revolving Loan Commitment of all
Lenders as of that date.

 

“Maximum
Lawful Rate” has the meaning ascribed to it in Section 1.5(f).

 

“Moody’s”
means Moody’s Investor Service, Inc.

 

“Mortgaged
Properties” has the meaning assigned to it in Annex D.

 

“Mortgages”
means each of the mortgages, debentures, deeds of trust, leasehold mortgages,
leasehold deeds of trust, collateral assignments of leases or other real estate
security documents delivered by any Credit Party to Agent, on behalf of itself
and Lenders with respect to the Mortgaged Properties, as amended, restated,
supplemented or otherwise modified from time to time, all in form and substance
reasonably satisfactory to Agent.

 

“Multiemployer
Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of
ERISA, and to which any Credit Party or ERISA Affiliate is making, is obligated
to make or has made or been obligated to make, contributions on behalf of
participants who are or were employed by any of them.

 

“New
Subordinated Debt” means the Indebtedness evidenced by the New Subordinated
Debt Documents.

 

“New
Subordinated Debt Documents” means the New Subordinated Notes, the New
Subordinated Debt Indenture, and all other documents executed in connection
therewith.

 

“New
Subordinated Debt Indenture” means that certain Indenture dated as of August 9,
2004 among Blount, Inc., as issuer, the “Guarantors” (as defined therein)
and The Bank of New York as trustee.

 

“New
Subordinated Notes” means those certain 8.875% Senior Subordinated Notes
due 2012 issued by Blount, Inc. in an aggregate original principal amount
of $175,000,000.

 

“Non-Funding
Lender” means any Lender (a) that has failed to fund any payments
required to be made by it  within three (3) Business
Days after any such payment is due, (b) that has given verbal or written
notice to a Borrower, Agent or any Lender or has otherwise publicly announced
that such Lender believes it will fail to fund all payments required to be made
by it or fund all purchases of participations required to be funded by it under
this Agreement and the other Loan Documents as of any Settlement Date, (c) as
to which Agent or any L/C Issuer has a good faith belief that such Lender has
defaulted in fulfilling its obligations (as a lender, agent or letter of credit
issuer) under one or more other syndicated credit facilities or (d) with
respect to which one or more Lender-Related Distress Events has occurred with
respect to such Person or any Person that directly or indirectly controls such
Lender and Agent has 

 

A-23

 

determined that such Lender may become a Non-Funding
Lender.  For purposes of this definition,
control of a Person shall have the same meaning as in the second sentence of
the definition of Affiliate.

 

“Notes”
means, collectively, the Revolving Notes, the Swing Line Notes and the Existing
Term Loan Notes and the Extending Term Loan Notes; and “Note” means any
one of the foregoing Notes.

 

“Notice
of Conversion/Continuation-LIBOR Rate” has the meaning ascribed to it in Section 1.5(f).

 

“Notice
of Revolving Credit Advance” has the meaning ascribed to it in Section 1.1(a)(i).

 

“Obligations” means all loans, advances, debts, liabilities and obligations for the
performance of covenants, tasks or duties or for payment of monetary amounts
(whether or not such performance is then required or contingent, or such amounts
are liquidated or determinable) owing by any Credit Party to Agent or any
Lender, and all covenants and duties regarding such amounts, of any kind or
nature, present or future, whether or not evidenced by any note, agreement,
letter of credit agreement or other instrument, arising under the Agreement or
any of the other Loan Documents.  This
term includes all principal, interest, Fees, expenses, attorneys’ fees and any
other sum chargeable to any Credit Party under the Agreement or any of the
other Loan Documents (including all interest, fees and expenses that
accrue after the commencement of any case or proceeding by or against any
Credit Party in bankruptcy or any similar proceeding, whether or not allowed in
such case or proceeding) and all Swap
Related Reimbursement Obligations and all
debts, liabilities and obligations of any kind or nature, present or future, of
any Credit Party to any Lender (or any Affiliate of any Lender) arising in
connection with any Hedge Agreement and if any Person ceases to be a Lender
hereunder, any debts, liabilities and obligations of any kind or nature,
present or future, of any Credit Party to such Person (or an Affiliate of such
Person) arising in connection with any Hedge Agreement entered into at a time
when such Person was a Lender hereunder.

 

“Omark”
has the meaning ascribed to it in the preamble of the Agreement.

 

“Other
Taxes” has the meaning ascribed to it in Section 1.15(b).

 

 “Patent License” means rights under any
written agreement now owned or hereafter acquired by any Credit Party granting
any right with respect to any invention on which a Patent is in existence.

 

“Patent
Security Agreements” means the Patent Security Agreements made in favor of
Agent, on behalf of itself and Lenders, by each applicable Credit Party.

 

“Patents”
means all of the following in which any Credit Party now holds or hereafter
acquires any interest: (a) all letters patent of the United States or of
any other country, all registrations and recordings thereof, and all
applications for letters patent of the United States or of any other country,
including registrations, recordings and applications in the United States 

 

A-24

 

Patent and Trademark Office or in any similar office
or agency of the United States or any State, and (b) all reissues,
continuations, continuations-in-part or extensions thereof.

 

“PBGC”
means the Pension Benefit Guaranty Corporation.

 

“Pension
Plan” means a Plan described in Section 3(2) of ERISA.

 

“Permitted
Acquisition” has the meaning ascribed to it in Section 6.1(b).

 

“Permitted
Encumbrances” means the following encumbrances: (a) Liens for taxes or
assessments or other governmental Charges not yet due and payable or which are
being contested in accordance with Section 5.2(b); (b) pledges
or deposits of money securing statutory obligations under workmen’s
compensation, unemployment insurance, social security or public liability laws
or similar legislation (excluding Liens under ERISA); (c) pledges or
deposits of money securing bids, tenders, contracts (other than contracts for
the payment of money) or leases to which any Credit Party is a party as lessee
made in the ordinary course of business; (d) inchoate and unperfected
workers’, mechanics’ or similar liens arising in the ordinary course of
business, so long as such Liens attach only to Equipment, Fixtures and/or Real
Estate; (e) carriers’, warehousemen’s, suppliers’ or other similar
possessory liens arising in the ordinary course of business and securing
liabilities in an outstanding aggregate amount not in excess of $100,000 at any
time; (f) deposits securing, or in lieu of, surety, appeal or customs
bonds in proceedings to which any Credit Party is a party; (g) any
attachment or judgment lien not constituting an Event of Default under Section 8.1(j);
(h) zoning restrictions, easements, licenses, or other restrictions on the
use of any Real Estate or other minor irregularities in title (including
leasehold title) thereto, so long as the same do not materially impair the use,
value, or marketability of such Real Estate; (i) presently existing or
hereafter created Liens in favor of Agent, on behalf of itself and Lenders; (j) Liens
expressly permitted under clauses (b), (c) and (d) of
Section 6.7 of the Agreement; (k) [Reserved]; (l) Liens
or other encumbrances for which exceptions are included in the title insurance
policies accepted by Agent involving the Mortgages; (m) any interest or
title of a lessor under any lease entered into by any Credit Party or
Subsidiary of a Credit Party in the ordinary course of business and covering
only the assets so leased; (n) Liens arising from precautionary Uniform
Commercial Code financing statement filings with respect to operating leases or
consignment arrangements entered into by any Credit Party or any Subsidiary of
any Credit Party in the ordinary course of business and only covering the
assets so leased or consigned; (o) subject to the requirements of Annex
C, Liens in favor of any banking institution arising by operation of law encumbering
deposits (including the right of set-off) held by such banking institutions
incurred in the ordinary course of business and which are within the general
parameters customary in the banking industry; (p) leases and subleases of
Real Estate not materially interfering with the ordinary conduct of business of
the applicable Credit Parties and otherwise consented to by Agent which consent
will not be unreasonably withheld; and (q) Liens under Section 412 of
the IRC or Section 302 of ERISA so long as such Liens secure liabilities
not in excess of $250,000 and so long as the PBGC has not taken any affirmative
action to perfect such Liens.

 

“Person”
means any individual, sole proprietorship, partnership, joint venture, trust,
unincorporated organization, association, corporation, limited liability
company, institution, public benefit corporation, other entity or government
(whether federal, state, county, 

 

A-25

 

city, municipal, local, foreign, or otherwise,
including any instrumentality, division, agency, body or department thereof).

 

“Plan”
means, at any time, an “employee benefit plan”, as defined in Section 3(3) of
ERISA, other than a Multiemployer Plan, that any Credit Party or ERISA
Affiliate maintains, contributes to or has an obligation to contribute to or
has maintained, contributed to or had an obligation to contribute to at any
time within the past seven (7) years on behalf of participants who are or
were employed by any Credit Party or ERISA Affiliate.

 

“Pledge
Agreement” means, collectively, the US Pledge Agreement, the Foreign Pledge
Agreements and any other pledge agreements entered into after the Closing Date
by any Credit Party (as required by the Agreement or any other Loan Document).

 

 “Prior Credit Agreement” has the
meaning ascribed to it in the recitals hereof.

 

“Prior
Lender Group” has the meaning ascribed to it in the recitals hereof.

 

“Pro
Forma” means the unaudited consolidated balance sheet of Holdings and its
Subsidiaries as of September 30, 2009 after giving pro  forma
effect to the Related Transactions.

 

“Pro
Rata Share” means with respect to all matters relating to any Lender, (a) with
respect to the Revolving Loan, the percentage obtained by dividing (i) the
Revolving Loan Commitment of that Lender by (ii) the aggregate Revolving
Loan Commitments of all Lenders, as any such percentages may be adjusted by
assignments permitted pursuant to Section 9.1, (b) with
respect to the Term Loan B, the percentage obtained by dividing (i) the Term
Loan B Commitment of that Lender by (ii) the aggregate Term Loan B
Commitments of all Lenders, as any such percentages may be adjusted by
assignments permitted pursuant to Section 9.1, (c) with
respect to all Loans prior to the Commitment Termination Date, the percentage
obtained by dividing (i) the aggregate Commitments of that Lender by (ii) the
aggregate Commitments of all Lenders, and (d) with respect to all Loans on
and after the Commitment Termination Date, the percentage obtained by dividing (i) the
aggregate outstanding principal balance of the Loans held by that Lender, by (ii) the
outstanding principal balance of the Loans held by all Lenders.

 

“Proceeds”
means “proceeds,” as such term is defined in the Code, including (a) any
and all proceeds of any insurance, indemnity, warranty or guaranty payable to
any Credit Party from time to time with respect to any of the Collateral, (b) any
and all payments (in any form whatsoever) made or due and payable to any Credit
Party from time to time in connection with any requisition, confiscation,
condemnation, seizure or forfeiture of all or any part of the Collateral by any
Governmental Authority (or any Person acting under color of governmental
authority), (c) any claim of any Credit Party against third parties (i) for
past, present or future infringement of any Patent or Patent License, or  (ii) for past, present or future
infringement or dilution of any Copyright, Copyright License, Designs, Design
Licenses, Trademark or Trademark License, or for injury to the goodwill
associated with any Trademark or Trademark License, (d) any recoveries by
any Credit Party against third parties with respect to any litigation or
dispute concerning any of the Collateral including claims arising out of the
loss or nonconformity of, interference with the use of, defects in, or
infringement of rights in, or damage to, Collateral, (e) all amounts
collected on, or distributed on account of, other Collateral, 

 

A-26

 

including dividends, interest, distributions and
Instruments with respect to Investment Property and pledged Stock, and (f) any
and all other amounts, rights to payment or other property acquired upon the
sale, lease, license, exchange or other disposition of Collateral and all
rights arising out of Collateral.

 

“Projections”
means Holdings’ forecasted consolidated: 
(a) balance sheets; (b) profit and loss statements; (c) cash
flow statements; and (d) capitalization statements, all prepared on a
Subsidiary by Subsidiary or division-by-division basis, if applicable, and
otherwise consistent with the historical Financial Statements of Holdings,
together with appropriate supporting details and a statement of underlying
assumptions.

 

 “Qualified Plan” means a Pension Plan
that is intended to be tax-qualified under Section 401(a) of the IRC.

 

“Reaffirmation
Agreement” means that certain Reaffirmation Agreement, dated as of the
Closing Date, entered into by and among Agent, on behalf of itself and Lenders,
and each Credit Party.

 

“Real
Estate” has the meaning ascribed to it in Section 3.6.

 

“Refinancing”
means the amendment and restatement of the Prior Credit Agreement pursuant to
the terms and conditions herein.

 

“Refunded
Swing Line Loan” has the meaning ascribed to it in Section 1.1(c)(iii).

 

 “Related Transactions” means the
borrowing of Revolving Credit Advances and the Term Loan B on the Closing Date,
the Refinancing, the payment of all fees, costs and expenses associated with
all of the foregoing and the execution and delivery of all of the Related
Transactions Documents.

 

“Related
Transactions Documents” means the Loan Documents and all other agreements
or instruments executed in connection with the Related Transactions.

 

“Release”
means any release, threatened release, spill, emission, leaking, pumping,
pouring, emitting, emptying, escape, injection, deposit, disposal, discharge,
dispersal, dumping, leaching or migration of Hazardous Material in the indoor
or outdoor environment, including the movement of Hazardous Material through or
in the air, soil, surface water, ground water or property.

 

“Replacement
Lender” has the meaning ascribed to it in Section 1.16(d).

 

“Requisite
Lenders” means Lenders holding 50.1% or more of the unutilized Commitments
(unless such Commitments have been terminated), participations in Swing Line
Loans and Letters of Credit, the Revolving Loans and the Term Loan B.

 

“Requisite
Revolving Lenders” means Lenders having (a) 50.1% or more of the
Revolving Loan Commitments, or (b) if the Revolving Loan Commitments have
been 

 

A-27

 

terminated, 50.1% or more of the aggregate outstanding
amount of the Revolving Loan, participation interests in Swing Line Loans.

 

“Restricted
Payment” means, with respect to any Credit Party (a) the declaration
or payment of any dividend or the incurrence of any liability to make any other
payment or distribution of cash or other property or assets in respect of
Stock; (b) any payment on account of the purchase, redemption, defeasance,
sinking fund or other retirement of such Credit Party’s Stock or any other
payment or distribution made in respect thereof, either directly or indirectly;
(c) any payment or prepayment of principal of, premium, if any, or
interest, fees or other charges on or with respect to, and any redemption,
purchase, retirement, defeasance, sinking fund or similar payment and any claim
for rescission with respect to, any Subordinated Debt; (d) any payment
made to redeem, purchase, repurchase or retire, or to obtain the surrender of,
any outstanding warrants, options or other rights to acquire Stock of such
Credit Party now or hereafter outstanding; (e) any payment of a claim for
the rescission of the purchase or sale of, or for material damages arising from
the purchase or sale of, any shares of such Credit Party’s Stock or of a claim
for reimbursement, indemnification or contribution arising out of or related to
any such claim for damages or rescission; (f) any payment, loan,
contribution, or other transfer of funds or other property to any Stockholder
of such Credit Party other than payment of compensation in the ordinary course
of business to Stockholders who are employees of such Person; and (g) any
payment of management fees (or other fees of a similar nature) by such Credit
Party to any Stockholder of such Credit Party or its Affiliates.

 

 “Revolving Credit Advance” has the
meaning ascribed to it in Section 1.1(a)(i).

 

“Revolving
Lender” means, as of any date of determination, a Lender having a Revolving
Loan Commitment.

 

“Revolving
Loan” and “Revolving Loans” means, at any time, the sum of (i) the
aggregate amount of Revolving Credit Advances outstanding to Borrowers plus
(ii) the aggregate Letter of Credit Obligations incurred on behalf of
Borrowers.  Unless the context otherwise
requires, references to the outstanding principal balance of the Revolving Loan
shall include the outstanding balance of Letter of Credit Obligations.

 

“Revolving Loan Commitment” means (a) as
to any Lender, the aggregate commitment of such Lender to make Revolving Credit
Advances or incur Letter of Credit Obligations as set forth on Annex J
to this Agreement or, if such Lender enters into an Assignment Agreement after
the Closing Date, in the most recent Assignment Agreement executed by such
Lender and (b) as to all Lenders, the aggregate commitment of all Lenders
to make Revolving Credit Advances or incur Letter of Credit Obligations, which
aggregate commitment shall be Sixty Million Dollars ($60,000,000), as such
amount may be adjusted, if at all, from time to time in accordance with the
Agreement.

 

“Revolving Note” and “Revolving Notes”
have the respective meanings ascribed to them in Section 1.1(a)(ii).

 

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

 

A-28

 

 

“Security
Agreement” means the Security Agreement dated as of May 15, 2003
entered into by and among Agent, on behalf of itself and Lenders, and each
Credit Party that is a signatory thereto, as amended, restated, supplemented or
otherwise modified from time to time.

 

“Software”
means all “software” as such term is defined in the Code, now owned or
hereafter acquired by any Credit Party, other than software embedded in any
category of Goods, including all computer programs and all supporting
information provided in connection with a transaction related to any program.

 

“Solvent”
means, with respect to any Person organized under the laws of the United States
or any state thereof, on a particular date, that on such date (a) the fair
value of the property of such Person is greater than the total amount of
liabilities, including contingent liabilities, of such Person; (b) the
present fair salable value of the assets of such Person is not less than the
amount that will be required to pay the probable liability of such Person on
its debts as they become absolute and matured; (c) such Person does not
intend to, and does not believe that it will, incur debts or liabilities beyond
such Person’s ability to pay as such debts and liabilities mature; and (d) such
Person is not engaged in a business or transaction, and is not about to engage
in a business or transaction, for which such Person’s property would constitute
an unreasonably small capital. The amount of contingent liabilities (such as
litigation, guaranties and pension plan liabilities) at any time shall be
computed as the amount that, in light of all the facts and circumstances
existing at the time, represents the amount that can be reasonably be expected
to become an actual or matured liability.

 

“SPV” means any
special purpose funding vehicle identified as such in a writing by any Lender
to Agent.

 

“Sterling” means
the lawful money of the United Kingdom.

 

“Stock”
means all shares, options, warrants, general or limited partnership interests,
membership interests or other equivalents (regardless of how designated) of or
in a corporation, partnership, limited liability company or equivalent entity
whether voting or nonvoting, including common stock, preferred stock or any
other “equity security” (as such term is defined in Rule 3a11-1 of the
General Rules and Regulations promulgated by the Securities and Exchange
Commission under the Securities Exchange Act of 1934).

 

“Stockholder”
means, with respect to any Person, each holder of Stock of such Person.

 

“Subordinated
Debt” means the Indebtedness evidenced by the New Subordinated Debt
Documents and any other Indebtedness of any Credit Party subordinated to the
Obligations in a manner and form satisfactory to Agent and Lenders in their
sole discretion, as to right and time of payment and as to any other rights and
remedies thereunder.

 

“Subsidiary”
means, with respect to any Person, (a) any corporation of which an
aggregate of more than 50% of the outstanding Stock having ordinary voting
power to elect a majority of the board of directors of such corporation
(irrespective of whether, at the time, Stock of any other class or classes of
such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time, directly or indirectly, owned
legally or 

 

A-29

 

beneficially by such Person or one or more
Subsidiaries of such Person, or with respect to which any such Person has the
right to vote or designate the vote of 50% or more of such Stock whether by
proxy, agreement, operation of law or otherwise, and (b) any partnership
or limited liability company in which such Person and/or one or more
Subsidiaries of such Person shall have an interest (whether in the form of
voting or participation in profits or capital contribution) of more than 50% or
of which any such Person is a general partner or may exercise the powers of a
general partner.  Unless the context
otherwise requires, each reference to a Subsidiary shall be a reference to a Subsidiary
of a Borrower.

 

“Supporting
Obligations” means all “supporting obligations” as such term is defined in
the Code, including letters of credit and guaranties issued in support of
Accounts, Chattel Paper, Documents, General Intangibles, Instruments, or
Investment Property.

 

“Swap
Related L/C” means a letter of credit or other credit enhancement provided
by GE Capital to the extent supporting the payment obligations by any Borrower
under an interest rate protection or hedging agreement or transaction (including,
but not limited to, interest rate swaps, caps, collars, floors and similar
transactions) designed to protect or manage exposure to the fluctuations in the
interest rates applicable to any of the Loans, and which agreement or
transaction Borrower entered into as the result of a specific referral pursuant
to which GE Capital, GE Corporate Financial Services, Inc. or any other
Affiliate of GE Capital had arranged for any Borrower to enter into such
agreement or transaction.  The term
includes a Swap Related L/C as it may be increased from time to time fully to
support any Borrower’s payment obligations under any and all such interest rate
protection or hedging agreements or transactions.”

 

“Swap
Related Reimbursement Obligation” has the meaning ascribed to it in Section 1.2A.

 

“Swing
Line Advance” has the meaning ascribed to it in Section 1.1(c)(i).

 

“Swing
Line Availability” has the meaning ascribed to it in Section 1.1(c)(i).

 

“Swing
Line Commitment” means, as to the Swing Line Lender, the commitment of the
Swing Line Lender to make Swing Line Advances as set forth on Annex J
to the Agreement, which commitment constitutes a subfacility of the Revolving
Loan Commitment of the Swing Line Lender.

 

“Swing
Line Lender” means GE Capital.

 

“Swing
Line Loan” means, as the context may require, at any time, the aggregate
amount of Swing Line Advances outstanding to Borrowers.

 

“Swing
Line Note” has the meaning ascribed to it in Section 1.1(c)(ii).

 

“Target”
has the meaning ascribed to it in Section 6.1(b).

 

“Taxes”
means present and future taxes (including, but not limited to, income,
corporate, capital, excise, property, ad valorem, sales, use, payroll, value
added and franchise 

 

A-30

 

taxes, deductions, withholdings and custom duties),
charges, fees, imposts, levies, deductions or withholdings and all liabilities
with respect thereto, imposed by any Governmental Authority excluding, in the
case of Section 1.15 only, (a) taxes imposed on or measured by
the net income or capital of Agent or a Lender by the jurisdictions under the
laws of which Agent and Lenders are organized or conduct business or any
political subdivision thereof, (b) any branch profits taxes imposed by the
United States of America or any similar tax imposed by any other jurisdiction
in which a Lender is located and (c) in the case of a Foreign Lender
(other than an assignee pursuant to a request by Borrowers under Section 1.16(d)),
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
designates a new lending office, unless such designation is at the request of
Borrowers) or is attributable to such Foreign Lender’s failure to comply with Section 1.15(d),
except to the extent that such Foreign Lender (or its assignor, if any) was
entitled, at the time of designation of a new lending office (or assignment),
to receive additional amounts from Borrowers with respect to such withholding
tax pursuant to Section 1.15(a).

 

“Term Loan B” means, collectively, the Existing
Term Loan and the Extending Term Loan.

 

“Term
Loan B Commitment” means, collectively, the Existing Term Loan Commitment
and the Extending Term Loan Commitment.

 

“Termination
Date” means the date on which (a) the Loans have been indefeasibly
repaid in full, (b) except as set forth in clause (c) below, all
other Obligations under the Agreement and the other Loan Documents have been
completely discharged (other than contingent indemnification obligations so
long as no suits, actions, proceedings or claims are pending or threatened
against any Indemnified Person asserting any damages, losses and liabilities
that are Indemnified Liabilities), (c) all Letter of Credit Obligations
have been cash collateralized, cancelled or backed by standby letters of credit
in accordance with Annex B, and (d) none of Borrowers shall have
any further right to borrow any monies under the Agreement.

 

“Title
IV Plan” means a Pension Plan (other than a Multiemployer Plan), that is
covered by Title IV of ERISA, and that any Credit Party or ERISA Affiliate
maintains, contributes to or has an obligation to contribute to on behalf of
participants who are or were employed by any of them.

 

“Trademark License” means rights under any
written agreement now owned or hereafter acquired by any Credit Party granting
any right to use any Trademark.

 

“Trademark
Security Agreements” means the Trademark Security Agreements made in favor
of Agent, on behalf of itself, by each applicable Credit Party.

 

“Trademarks”
means all of the following now owned or hereafter existing or adopted or
acquired by any Credit Party: (a) all trademarks, trade names, corporate
names, business names, trade styles, service marks, logos, other source or
business identifiers, prints and labels on which any of the foregoing have
appeared or appear, designs and general intangibles of like nature (whether
registered or unregistered), all registrations and recordings thereof, and all
applications in connection therewith, including registrations, recordings and
applications in the 

 

A-31

 

United States Patent and Trademark Office or in any
similar office or agency of the United States, any state or territory thereof,
or any other country or any political subdivision thereof; (b) all
reissues, extensions or renewals thereof; and (c) all goodwill associated
with or symbolized by any of the foregoing.

 

“Unfunded
Pension Liability” means, at any time, the aggregate amount, if any, of the
sum of (a) the amount by which the present value of all accrued benefits
under each Title IV Plan exceeds the fair market value of all assets of such
Title IV Plan allocable to such benefits in accordance with Title IV of ERISA,
all determined as of the most recent valuation date for each such Title IV Plan
using the actuarial assumptions for funding purposes in effect under such Title
IV Plan, and (b) for a period of 5 years following a transaction which
might reasonably be expected to be covered by Section 4069 of ERISA, the
liabilities (whether or not accrued) that could be avoided by any Credit Party
or any ERISA Affiliate as a result of such transaction.

 

“US
Pledge Agreement” means the Amended and Restated Pledge Agreement dated as
of August 9, 2004 executed by the Credit Parties in favor of Agent, on
behalf of itself and the Lenders pledging all Stock of their domestic
Subsidiaries and 65% of the stock of their direct Foreign Subsidiaries, if any,
and all indebtedness for money borrowed of a Subsidiary of Holdings, as
amended, restated, supplemented or otherwise modified from time to time.

 

Rules of
construction with respect to accounting terms used in the Agreement or the
other Loan Documents shall be as set forth in Annex G.  All other undefined terms contained in any of
the Loan Documents shall, unless the context indicates otherwise, have the
meanings provided for by the Code to the extent the same are used or defined
therein; in the event that any term is defined differently in different
Articles or Divisions of the Code, the definition contained in Article or
Division 9 shall control.  Unless
otherwise specified, references in the Agreement or any of the Appendices to a
Section, subsection or clause refer to such Section, subsection or clause as
contained in the Agreement.  The words “herein,”
“hereof” and “hereunder” and other words of similar import refer to the
Agreement as a whole, including all Annexes, Exhibits and Schedules, as the
same may from time to time be amended, restated, modified or supplemented, and
not to any particular section, subsection or clause contained in the Agreement
or any such Annex, Exhibit or Schedule. 
An Event of Default shall “exist”, “continue” or be “continuing” until
such Event of Default is waived in writing in accordance with Section 11.2
of the Agreement.

 

Wherever
from the context it appears appropriate, each term stated in either the
singular or plural shall include the singular and the plural, and pronouns
stated in the masculine, feminine or neuter gender shall include the masculine,
feminine and neuter genders.  The words “including”,
“includes” and “include” shall be deemed to be followed by the words “without
limitation”; the word “or” is not exclusive; references to Persons include
their respective successors and assigns (to the extent and only to the extent
permitted by the Loan Documents) or, in the case of governmental Persons,
Persons succeeding to the relevant functions of such Persons; and all
references to statutes and related regulations shall include any amendments of
the same and any successor statutes and regulations.  Whenever any provision in any Loan Document
refers to the knowledge (or an analogous phrase) of any Credit Party, such
words are intended to signify that such Credit Party has actual knowledge or
awareness of a particular fact 

 

A-32

 

or circumstance or that such Credit Party, if it had
exercised reasonable diligence, would have known or been aware of such fact or
circumstance.

 

A-33

 

ANNEX E (SECTION 4.1(A))

TO

CREDIT AGREEMENT

 

FINANCIAL STATEMENTS AND
PROJECTIONS — REPORTING

 

Borrowers
shall deliver or cause to be delivered to Agent or to Agent and Lenders, as
indicated, the following:

 

(a)           Monthly Financials.  To Agent and Lenders, within 30 days after
the end of each Fiscal Month, financial information regarding Holdings and its
Subsidiaries, certified by the Chief Financial Officer of Holdings, consisting
of consolidated (i) unaudited balance sheets as of the close of such
Fiscal Month and the related statements of income and cash flows for that
portion of the Fiscal Year ending as of the close of such Fiscal Month; (ii) unaudited
statements of income and cash flows for such Fiscal Month, setting forth in
comparative form the figures for the corresponding period in the prior year and
the figures contained in the Projections for such Fiscal Year, all prepared in
accordance with GAAP (subject to normal year-end adjustments); and (iii) a
summary of the outstanding balance of all Intercompany Notes as of the last day
of that Fiscal Month; provided, however, Holdings and its
Subsidiaries shall not be required to deliver such monthly financial reports
unless EBITDA for the 4 Fiscal Quarter period ended as of the last Fiscal
Quarter for which financial statements have been delivered pursuant to clause (b) of
this Annex E is less than $75,000,000. 
If required, such financial information shall be accompanied by the
certification of the Chief Financial Officer of Holdings that (i) such
financial information presents fairly in accordance with GAAP (subject to
normal year-end adjustments) the financial position and results of operations
of Holdings and its Subsidiaries, on a consolidated basis as at the end of such
Fiscal Month and for that portion of the Fiscal Year then ended and (ii) any
other information presented is true, correct and complete in all material
respects and that there was no Default or Event of Default in existence as of
such time or, if a Default or Event of Default has occurred and is continuing,
describing the nature thereof and all efforts undertaken to cure such Default
or Event of Default.  In addition, such
financial information shall be accompanied by the information and reports
required by clause (a) of Annex F.

 

(b)           Quarterly Financials.  To Agent and Lenders, within 45 days after
the end of each Fiscal Quarter, consolidated financial information regarding
Holdings and its Subsidiaries, certified by the Chief Financial Officer of
Holdings, including (i) unaudited balance sheets as of the close of such
Fiscal Quarter and the related statements of income and cash flow for that
portion of the Fiscal Year ending as of the close of such Fiscal Quarter and (ii) unaudited
statements of income and cash flows for such Fiscal Quarter, in each case
setting forth in comparative form the figures for the corresponding period in
the prior year and the figures contained in the Projections for such Fiscal
Year, all prepared in accordance with GAAP (subject to normal year-end
adjustments).  Such financial information
shall be accompanied by (A) a statement in reasonable detail (each, a “Compliance
Certificate”) showing the calculations used in determining compliance with
each of the Financial Covenants that is tested on a quarterly basis and (B) the
certification of the Chief Financial Officer of Holdings that (i) such
financial information presents fairly in accordance with GAAP (subject to
normal year-end adjustments) the financial position, results of operations and
statements of cash flows of Holdings and its 

 

E-1

 

Subsidiaries, on a consolidated basis, as at the end
of such Fiscal Quarter and for that portion of the Fiscal Year then ended, and (ii) any
other information presented is true, correct and complete in all material
respects and that there was no Default or Event of Default in existence as of
such time or, if a Default or Event of Default has occurred and is continuing,
describing the nature thereof and all efforts undertaken to cure such Default
or Event of Default.  In addition, such
financial information shall be accompanied by the information and reports
required by clause (a) of Annex F.

 

(c)           Operating Plan. To Agent and
Lenders, as soon as available, but not later than 30 days after the end of each
Fiscal Year, an annual operating plan for Holdings and its Subsidiaries, on a
consolidated basis, approved by the Board of Directors of Holdings, for the
following Fiscal Year, which (i) includes a statement of all of the
material assumptions on which such plan is based, (ii) includes monthly
balance sheets, income statements and statements of cash flows for the
following year and (iii) integrates sales, gross profits, operating
expenses, operating profit, cash flow projections and Borrowing Availability
projections, all prepared on the same basis and in similar detail as that on
which operating results are reported (and in the case of cash flow projections,
representing management’s good faith estimates of future financial performance
based on historical performance), and including plans for personnel, Capital
Expenditures and facilities.

 

(d)           Annual Audited Financials. To
Agent and Lenders, within 90 days after the end of each Fiscal Year, audited
Financial Statements for Holdings and its Subsidiaries on a consolidated basis,
consisting of balance sheets and statements of income and retained earnings and
cash flows, setting forth in comparative form in each case the figures for the
previous Fiscal Year, which Financial Statements shall be prepared in
accordance with GAAP and certified without qualification, by an independent
certified public accounting firm of national standing or otherwise acceptable
to Agent.  Such Financial Statements shall
be accompanied by (i) a statement prepared in reasonable detail showing
the calculations used in determining compliance with each of the Financial
Covenants, (ii) a report from such accounting firm to the effect that, in
connection with their audit examination, nothing has come to their attention to
cause them to believe that a Default or Event of Default has occurred (or
specifying those Defaults and Events of Default that they became aware of), it
being understood that such audit examination extended only to accounting
matters and that no special investigation was made with respect to the
existence of Defaults or Events of Default, (iii) if available, a letter
addressed to Agent, on behalf of itself, and Lenders, in form and substance
reasonably satisfactory to Agent and subject to standard qualifications
required by nationally recognized accounting firms, signed by such accounting
firm acknowledging that Agent and Lenders are entitled to rely upon such
accounting firm’s certification of such audited Financial Statements, (iv) the
annual letters to such accountants in connection with their audit examination
detailing contingent liabilities and material litigation matters, and (v) the
certification of the Chief Executive Officer or Chief Financial Officer of
Holdings and its Subsidiaries that all such Financial Statements present fairly
in accordance with GAAP the financial position, results of operations and
statements of cash flows of Holdings and its Subsidiaries on a consolidated
basis, as at the end of such Fiscal Year and for the period then ended, and
that there was no Default or Event of Default in existence as of such time or,
if a Default or Event of Default has occurred and is continuing, describing the
nature thereof and all efforts undertaken to cure such Default or Event of
Default.

 

E-2

 

(e)           Management Letters.  To Agent and Lenders, within a reasonable
period of time (in no event in excess of 30 days) after delivery thereof to any
Credit Party or the audit committee of Holdings for review, copies of all
management letters, exception reports or similar letters or reports received by
such audit committee or Credit Party from its independent certified public
accountants.

 

(f)            Default Notices.  To Agent and Lenders, as soon as practicable,
and in any event within 5 Business Days after an executive officer of any
Borrower has actual knowledge of the existence of any Default or Event of
Default, telephonic or telecopied notice specifying the nature of such Default
or Event of Default or other event, including the anticipated effect thereof,
which notice, if given telephonically, shall be promptly confirmed in writing
on the next Business Day.

 

(g)           SEC Filings and Press Releases.  To Agent and Lenders, promptly upon their
becoming available, copies of:  (i) all
Financial Statements, reports, notices and proxy statements made publicly
available by any Credit Party to its security holders; (ii) all regular
and periodic reports and all registration statements and prospectuses, if any,
filed by any Credit Party with any securities exchange or with the Securities
and Exchange Commission or any governmental or private regulatory authority;
and (iii) all press releases and other statements made available by any Credit
Party to the public concerning material changes or developments in the business
of any such Person.

 

(h)           Subordinated Debt and Equity
Notices.  To Agent, as soon as
practicable, copies of all material written notices given or received by any
Credit Party with respect to any Subordinated Debt or Stock of such Person,
and, within 2 Business Days after any Credit Party obtains knowledge of any
matured or unmatured event of default with respect to any Subordinated Debt,
notice of such event of default.

 

(i)            Supplemental Schedules.  To Agent, supplemental disclosures, if any,
required by Section 5.6.

 

(j)            Litigation.  To Agent in writing, promptly upon learning
thereof, notice of any Litigation commenced or threatened against any Credit
Party that (i) could reasonably be likely to result in damages in excess
of $1,000,000 (net of insurance coverages for such damages), (ii) seeks
injunctive relief, (iii) is asserted or instituted against any Plan, its
fiduciaries or its assets or against any Credit Party or ERISA Affiliate in
connection with any Plan, (iv) alleges criminal misconduct by any Credit
Party, (v) alleges the violation of any law regarding, or seeks remedies
in connection with, any Environmental Liabilities to the extent such Litigation
is commenced by a Governmental Authority or otherwise to the extent such
Litigation seeks damages in excess of $1,000,000, or (vi) involves any
product recall.

 

(k)           Insurance Notices.  To Agent, disclosure of losses or casualties
required by Section 5.4.

 

(l)            Lease Default Notices.  To Agent, within two (2) Business Days
after receipt thereof, copies of (i) any and all default notices received
under or with respect to any 

 

E-3

 

leased location or public warehouse where Collateral
is located, and (ii) such other notices or documents as Agent may
reasonably request.

 

(m)          Lease Amendments.  To Agent, within two (2) Business Days
after receipt thereof, copies of all material amendments to real estate leases
with respect to real property located in Clackamas, Oregon and Kansas City,
Missouri.

 

(n)           Indemnification Agreements.  To Agent, within two (2) Business Days
after receipt of any claim, Blount, Inc. shall provide to Agent a report
of any claims, individually or in the aggregate, in excess of $1,000,000 (and
any payments made by any Credit Party in connection therewith) pursuant to any
indemnification obligations with respect to any sale or purchase documents
executed by any Credit Party.

 

(o)           Other Documents.  To Agent and Lenders, such other financial
and other information respecting any Credit Party’s business or financial
condition as Agent or any Lender shall from time to time reasonably request.

 

E-4

 

ANNEX G (SECTION 6.10)

TO

CREDIT AGREEMENT

 

FINANCIAL COVENANTS

 

Borrowers
shall not breach or fail to comply with any of the following financial
covenants, each of which shall be calculated in accordance with GAAP
consistently applied:

 

(a)           Maximum Capital Expenditures.  Holdings and its Subsidiaries on a
consolidated basis shall not make Capital Expenditures during any Fiscal Year
that exceed in the aggregate amount set forth in the table below for such
Fiscal Year:

 

	
  Fiscal
  Year Ending:

  	
   

  	
  Maximum Capital

  Expenditures:

  	
   

  
	
  December 31,
  2009 and each Fiscal Year thereafter

  	
   

  	
  $

  	
  32,500,000

  	
   

  
					

 

(b)           Minimum Fixed Charge Coverage
Ratio.  Holdings and its Subsidiaries
shall have on a consolidated basis at the end of each Fiscal Quarter a Fixed
Charge Coverage Ratio for the 4 Fiscal Quarter period then ended of not less
than the following:

 

	
  Fiscal
  Quarters Ending:

  	
   

  	
  Minimum Fixed Charge Coverage Ratio:

  	
   

  
	
  September 30,
  2009 and each Fiscal Quarter thereafter

  	
   

  	
  1.15 to 1.00

  	
   

  

 

(c)           Intentionally Omitted.

 

(d)           Maximum Leverage.  Holdings and its Subsidiaries shall not
permit, at any time, the Leverage Ratio to exceed the applicable amount set
forth below:

 

	
  Period:

  	
   

  	
  Maximum Leverage Ratio:

  	
   

  
	
  September 30, 2009 and thereafter

  	
   

  	
  4.50 to 1.00

  	
   

  

 

(e)           Maximum Credit Facility Leverage.  Holdings and its Subsidiaries shall not
permit, at any time, the Credit Facility Leverage Ratio to exceed the
applicable amount set forth below:

 

G-1

 

	
  Period:

  	
   

  	
  Maximum Leverage Ratio:

  	
   

  
	
  September 30, 2009 and thereafter

  	
   

  	
  2.50 to 1.00

  	
   

  

 

Unless
otherwise specifically provided herein, any accounting term used in the
Agreement shall have the meaning customarily given such term in accordance with
GAAP, and all financial computations hereunder shall be computed in accordance
with GAAP consistently applied.  That
certain items or computations are explicitly modified by the phrase “in
accordance with GAAP” shall in no way be construed to limit the foregoing.  If any “Accounting Changes” (as defined
below) occur and such changes result in a change in the calculation of the
financial covenants, standards or terms used in the Agreement or any other Loan
Document, then Borrowers, Agent and Lenders agree to enter into negotiations in
order to amend such provisions of the Agreement so as to equitably reflect such
Accounting Changes with the desired result that the criteria for evaluating
Holdings’ and its Subsidiaries’ financial condition shall be the same after
such Accounting Changes as if such Accounting Changes had not been made; provided,
however, that the agreement of Requisite Lenders to any required
amendments of such provisions shall be sufficient to bind all Lenders.  Any amendments to the Financial Covenants or
the definitions used therein pursuant to the foregoing (including the proviso)
or otherwise shall not be deemed to result in a reduction in the rate of
interest for purposes of Section 11.2(c)(ii) of the Credit
Agreement.  “Accounting Changes”
means (i) changes in accounting principles required by the promulgation of
any rule, regulation, pronouncement or opinion by the Financial Accounting
Standards Board of the American Institute of Certified Public Accountants (or
successor thereto or any agency with similar functions), (ii) changes in
accounting principles concurred in by any Credit Party’s certified public
accountants; (iii) purchase accounting adjustments under A.P.B. 16 or 17
and EITF 88-16, and the application of the accounting principles set forth in
FASB 109, including the establishment of reserves pursuant thereto and any
subsequent reversal (in whole or in part) of such reserves; and (iv) the
reversal of any reserves established as a result of purchase accounting
adjustments.  If Agent, Borrowers and
Requisite Lenders agree upon the required amendments, then after appropriate
amendments have been executed and the underlying Accounting Change with respect
thereto has been implemented, any reference to GAAP contained in the Agreement
or in any other Loan Document shall, only to the extent of such Accounting
Change, refer to GAAP, consistently applied after giving effect to the
implementation of such Accounting Change. 
If Agent, Borrowers and Requisite Lenders cannot agree upon the required
amendments within 30 days following the date of implementation of any
Accounting Change, then all Financial Statements delivered and all calculations
of financial covenants and other standards and terms in accordance with the
Agreement and the other Loan Documents shall be prepared, delivered and made
without regard to the underlying Accounting Change.  For purposes of Section 8.1, a
breach of a Financial Covenant contained in this Annex G (other
than clause (a) of this Annex G) shall be deemed to have occurred
as of any date of reasonable determination by Agent or as of the last day of any
specified measurement period, regardless of when the Financial Statements
reflecting such breach are delivered to Agent.

 

G-2

 

 

Exhibit 1.1(a)(i)

BLOUNT, INC, and the other
Borrowers

Notice of Revolving Credit
Advance

 

Capitalized terms used herein which are defined in the
Second Amended and Restated Credit Agreement, dated as of December 4, 2009
(as amended, restated, supplemented or otherwise modified from time to time,
the “Credit Agreement”), by and among Blount, Inc., a Delaware
corporation (“Borrower Representative”), and the other Persons named
therein as Borrowers (collectively, “Borrowers”), the other Credit
Parties signatory thereto, the Persons signatory thereto from time to time as
Lenders (“Lenders”) and General Electric Capital Corporation, as agent
(in such capacity, “Agent”) for itself and all Lenders.  Borrower Representative hereby certifies on
behalf of Borrowers that on the date hereof and on the borrowing date set forth
below: (i) all representations and warranties made by Borrowers contained
in the Credit Agreement and the other Loan Documents are and will be true and
correct, both before and after giving effect to the Revolving Credit Advance
and to the application of the proceeds thereof, as though made on such date,
unless stated to relate to a specific earlier date, in which case such
representations and warranties shall be true and correct as of such earlier
date and except for changes therein expressly permitted or expressly
contemplated by the Credit Agreement; (ii) no event or circumstance having
a Material Adverse Effect has occurred since the Closing Date; (iii) no
Default or Event of Default exists, or would result from such Revolving Credit
Advance or from the application of the proceeds thereof; and (iv) after
giving effect to the Revolving Credit Advance, 
the outstanding principal amount of the Revolving Loan will not exceed
the Maximum Amount less the then outstanding principal amount of the Swing Line
Loan.

 

	
  Client and Address

  	
   

  	
  Blount, Inc.

  	
   

  	
  Name of Contact

  	
   

  	
   

  	
  Phone

  	
   

  	
  (###) ###-####

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Fax

  	
   

  	
  (###) ###-####

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank

  	
   

  	
   

  	
   

  	
  Wire Information

  	
   

  	
   

  	
  ABA#

  	
   

  	
   

  
	
  Address

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Acct#

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank Contact

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Request Date

Index Rate Loan Amount   
$

LIBOR  Loan Amount $

LIBOR Period: 
           months

 

Borrowing Availability

 

	
  1.
  Maximum Amount

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. Less: Outstanding
  Revolving Credit Advances

  	
   

  	
  $

  	
  -

  	
   

  	
   

  	
   

  
	
  3. Less: Letter of Credit
  Obligations

  	
   

  	
  $

  	
  -

  	
   

  	
   

  	
   

  
	
  4. Less: Outstanding Swing
  Line Loans

  	
   

  	
  $

  	
  -

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.  Borrowing Availability

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  
								

 

	
  Loan
  Balance

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6. Revolver Balance (Lines 2
  and 3)

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  
	
  7. Plus: Current Amount
  Requested (from above)

  	
   

  	
  +

  	
  $

  	
  —

  	
   

  	
   

  	
   

  
	
  8. Revolver Balance After
  Advance

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  

 

Borrower Representative has caused this Request to be executed by its
duly authorized officer as of the date and year first written above.

 

	
  Authorizations

  	
  Blount, Inc.

  	
   

  	
  Phone

  	
   

  	
  Fax

  
	
    Requested by:

  	
   

  	
   

  	
  (###) ###-####

  	
   

  	
  (###) ###-####

  
	
   

  	
  Duly Authorized Signatory

  	
   

  	
   

  	
   

  	
   

  

 

	
  Fax to:  

  	
  GE Capital 
  (###) ###-#### ;

        
  Phone:  (###) ###-####

  	
   

  	
   

  	
   

  	
   

  

 

1

 

EXHIBIT 1.1(a)(ii)

to

CREDIT AGREEMENT

 

FORM OF REVOLVING NOTE

 

New York, New York

 

	
  $

  	
   

  	
  , 20     

  

 

FOR
VALUE RECEIVED, the undersigned, BLOUNT, INC., a Delaware corporation,
GEAR PRODUCTS, INC., an Oklahoma corporation, OMARK PROPERTIES, INC,
an Oregon corporation, and WINDSOR FORESTRY TOOLS LLC, a Tennessee limited
liability company (collectively, “Borrowers”), HEREBY, JOINTLY AND
SEVERALLY, PROMISE TO PAY to the order of                                                
(“Lender”), at the offices of GENERAL ELECTRIC CAPITAL CORPORATION, a
Delaware corporation, as agent for itself and all Lenders (“Agent”), at
its address at 201 Merritt 7, Norwalk, Connecticut 06856-5201, or at such other
place as Agent may designate from time to time in writing, in lawful money of
the United States of America and in immediately available funds, the amount of                                            
DOLLARS AND                     
CENTS ($      ,          ,            )
or, if less, the aggregate unpaid amount of all Revolving Credit Advances made
to the undersigned under the “Credit Agreement” (as hereinafter defined).  All capitalized terms used but not otherwise
defined herein have the meanings given to them in the Credit Agreement.

 

This
Revolving Note is one of the Revolving Notes issued pursuant to that certain
Second Amended and Restated Credit Agreement dated as of December 4, 2009
by and among Borrowers, the other Persons named therein as Credit Parties,
Agent and the other Persons signatory thereto from time to time as Lenders
(including all annexes, exhibits and schedules thereto, and as from time to
time amended, restated, supplemented or otherwise modified, the “Credit
Agreement”), and is entitled to the benefit and security of the Credit
Agreement, the Security Agreement and all of the other Loan Documents referred
to therein.  Reference is hereby made to
the Credit Agreement for a statement of all of the terms and conditions under
which the Loans evidenced hereby are made and are to be repaid.  The date and amount of each Revolving Credit
Advance made by Lender to Borrowers, the rates of interest applicable thereto
and each payment made on account of the principal thereof, shall be recorded by
Agent on its books; provided that the failure of Agent to make any such
recordation shall not affect the obligations of Borrowers to make a payment
when due of any amount owing under the Credit Agreement or this Revolving Note
in respect of the Revolving Credit Advances made by Lender to Borrowers.

 

The
principal amount of the indebtedness evidenced hereby shall be payable in the
amounts and on the dates specified in the Credit Agreement, the terms of which
are hereby incorporated herein by reference. 
Interest thereon shall be paid until such principal amount is paid in
full at such interest rates and at such times, and pursuant to such
calculations, as are specified in the Credit Agreement.

 

 

If
any payment on this Revolving Note becomes due and payable on a day other than
a Business Day, the maturity thereof shall be extended to the next succeeding
Business Day and, with respect to payments of principal, interest thereon shall
be payable at the then applicable rate during such extension.

 

Upon
and after the occurrence of any Event of Default, this Revolving Note may, as provided
in the Credit Agreement, and without demand, notice or legal process of any
kind, be declared, and immediately shall become, due and payable.

 

Time
is of the essence of this Revolving Note. 
Demand, presentment, protest and notice of nonpayment and protest are
hereby waived by Borrowers.

 

Except
as provided in the Credit Agreement, this Revolving Note may not be assigned by
Lender to any Person.

 

[THIS
REVOLVING NOTE, TOGETHER WITH THE OTHER REVOLVING NOTES OF EVEN DATE HEREWITH,
ARE MADE AND GIVEN IN REPLACEMENT OF THOSE CERTAIN “US REVOLVING NOTES”, ISSUED
BY CERTAIN BORROWERS  IN CONNECTION WITH THE PRIOR CREDIT
AGREEMENT, AND IS NOT INTENDED TO BE A NOVATION.](1)

 

THIS
REVOLVING NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE.

 

(1)  Include this reference to the
extent applicable.

 

[SIGNATURE PAGES FOLLOW]

 

2

 

IN
WITNESS WHEREOF, each of the parties hereto have caused this Revolving Note to
be executed and delivered by its duly authorized officer as of the date first
set forth above.

 

	
   

  	
  BLOUNT, INC., a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  GEAR
  PRODUCTS, INC., an Oklahoma corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  WINDSOR
  FORESTRY TOOLS LLC, a Tennessee limited liability company

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  Blount, Inc.,
  its sole member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  OMARK
  PROPERTIES, INC., an Oregon corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

REVOLVING NOTE

 

 

EXHIBIT 1.1(b)(i)

to

CREDIT AGREEMENT

 

FORM OF EXISTING TERM LOAN NOTE

 

New York, New York

 

	
  $

  	
   

  	
  ,
  20

  

 

FOR
VALUE RECEIVED, the undersigned, BLOUNT, INC., a Delaware corporation,
GEAR PRODUCTS, INC., an Oklahoma corporation, OMARK PROPERTIES, INC.,
an Oregon corporation, and WINDSOR FORESTRY TOOLS LLC, a Tennessee limited
liability company (collectively, “Borrowers”), HEREBY, JOINTLY AND
SEVERALLY, PROMISE TO PAY to the order of                                           
(“Lender”) at the offices of GENERAL ELECTRIC CAPITAL CORPORATION, a
Delaware corporation, as agent for itself and all Lenders (“Agent”), at
its address at 201 Merritt 7, Norwalk, Connecticut 06856-5201, or at such other
place as Agent may designate from time to time in writing, in lawful money of
the United States of America and in immediately available funds, the amount of                                       
DOLLARS AND            
CENTS ($      ,      ,      ).  All capitalized terms used but not otherwise
defined herein have the meanings given to them in the “Credit Agreement” (as
hereinafter defined).

 

This
Existing Term Loan Note is one of the Existing Term Loan Notes issued pursuant
to that certain Second Amended and Restated Credit Agreement dated as of December 4,
2009 by and among Borrowers, the other Persons named therein as Credit Parties,
Agent and the other Persons signatory thereto from time to time as Lenders
(including all annexes, exhibits and schedules thereto and as from time to time
amended, restated, supplemented or otherwise modified, the “Credit Agreement”),
and is entitled to the benefit and security of the Credit Agreement, the
Security Agreement and all of the other Loan Documents referred to therein.
Reference is hereby made to the Credit Agreement for a statement of all of the
terms and conditions under which the Loans evidenced hereby are made and are to
be repaid.  The principal balance of the
Existing Term Loan, the rates of interest applicable thereto and the date and
amount of each payment made on account of the principal thereof shall be
recorded by Agent on its books; provided, however, that the
failure of Agent to make any such recordation shall not affect the obligations
of Borrowers to make a payment when due of any amount owing under the Credit
Agreement or this Existing Term Loan Note.

 

The
principal amount of the indebtedness evidenced hereby shall be payable in the
amounts and on the dates specified in the Credit Agreement.  Interest thereon shall be paid until such
principal amount is paid in full at such interest rates at such times and
pursuant to such calculations as are specified in the Credit Agreement.  The terms of the Credit Agreement are hereby
incorporated herein by reference.

 

If
any payment on this Existing Term Loan Note becomes due and payable on a day
other than a Business Day, the maturity thereof shall be extended to the next
succeeding 

 

 

Business
Day and, with respect to payments of principal, interest thereon shall be
payable at the then applicable rate during such extension.

 

Upon
and after the occurrence of any Event of Default, this Existing Term Loan Note
may, as provided in the Credit Agreement, and without demand, notice or legal
process of any kind, be declared, and immediately shall become, due and
payable.

 

Time
is of the essence of this Existing Term Loan Note.  Demand, presentment, protest and notice of
nonpayment and protest are hereby waived by Borrowers.

 

Except
as provided in the Credit Agreement, this Existing Term Loan Note may not be
assigned by Lender to any Person.

 

[THIS
EXISTING TERM LOAN NOTE, TOGETHER WITH THE OTHER EXISTING TERM LOAN NOTES OF
EVEN DATE HEREWITH, ARE MADE AND GIVEN IN REPLACEMENT OF THOSE CERTAIN “TERM B
NOTES”, ISSUED BY CERTAIN BORROWERS  IN CONNECTION WITH THE PRIOR CREDIT
AGREEMENT, AND IS NOT INTENDED TO BE A NOVATION.](1)

 

THIS
EXISTING TERM LOAN NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN
THAT STATE.

 

(1)  Include this reference to the extent applicable.

 

[SIGNATURE
PAGES FOLLOW]

 

2

 

IN
WITNESS WHEREOF, each of the parties hereto have caused this Existing Term Loan
Note to be executed and delivered by its duly authorized officer as of the date
first set forth above.

 

	
   

  	
  BLOUNT, INC., a Delaware
  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GEAR
  PRODUCTS, INC., an Oklahoma corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WINDSOR
  FORESTRY TOOLS LLC, a Tennessee limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
   Blount, Inc., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OMARK
  PROPERTIES, INC., an Oregon corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

EXISTING TERM LOAN NOTE

 

S-1

 

EXHIBIT 1.1(b)(ii)

to

CREDIT AGREEMENT

 

FORM OF EXTENDING TERM LOAN NOTE

 

New York, New York

 

	
  $

  	
   

  	
  ,
  20

  

 

FOR
VALUE RECEIVED, the undersigned, BLOUNT, INC., a Delaware corporation,
GEAR PRODUCTS, INC., an Oklahoma corporation, OMARK PROPERTIES, INC.,
an Oregon corporation, and WINDSOR FORESTRY TOOLS LLC, a Tennessee limited
liability company (collectively, “Borrowers”), HEREBY, JOINTLY AND
SEVERALLY, PROMISE TO PAY to the order of                                           
(“Lender”) at the offices of GENERAL ELECTRIC CAPITAL CORPORATION, a
Delaware corporation, as agent for itself and all Lenders (“Agent”), at
its address at 201 Merritt 7, Norwalk, Connecticut 06856-5201, or at such other
place as Agent may designate from time to time in writing, in lawful money of
the United States of America and in immediately available funds, the amount of                                                     
DOLLARS AND            
CENTS ($       ,       ,       ).  All capitalized terms used but not otherwise
defined herein have the meanings given to them in the “Credit Agreement” (as
hereinafter defined).

 

This
Extending Term Loan Note is one of the Extending Term Loan Notes issued
pursuant to that certain Second Amended and Restated Credit Agreement dated as
of December 4, 2009 by and among Borrowers, the other Persons named
therein as Credit Parties, Agent and the other Persons signatory thereto from
time to time as Lenders (including all annexes, exhibits and schedules thereto
and as from time to time amended, restated, supplemented or otherwise modified,
the “Credit Agreement”), and is entitled to the benefit and security of
the Credit Agreement, the Security Agreement and all of the other Loan
Documents referred to therein.  Reference
is hereby made to the Credit Agreement for a statement of all of the terms and
conditions under which the Loans evidenced hereby are made and are to be
repaid.  The principal balance of the
Extending Term Loan, the rates of interest applicable thereto and the date and
amount of each payment made on account of the principal thereof, shall be
recorded by Agent on its books; provided, however, that the
failure of Agent to make any such recordation shall not affect the obligations
of Borrowers to make a payment when due of any amount owing under the Credit
Agreement or this Extending Term Loan Note.

 

The
principal amount of the indebtedness evidenced hereby shall be payable in the
amounts and on the dates specified in the Credit Agreement.  Interest thereon shall be paid until such
principal amount is paid in full at such interest rates and at such times, and
pursuant to such calculations, as are specified in the Credit Agreement.  The terms of the Credit Agreement are hereby
incorporated herein by reference.

 

If
any payment on this Extending Term Loan Note becomes due and payable on a day
other than a Business Day, the maturity thereof shall be extended to the next
succeeding 

 

 

Business
Day and, with respect to payments of principal, interest thereon shall be
payable at the then applicable rate during such extension.

 

Upon
and after the occurrence of any Event of Default, this Extending Term Loan Note
may, as provided in the Credit Agreement, and without demand, notice or legal
process of any kind, be declared, and immediately shall become, due and
payable.

 

Time
is of the essence of this Extending Term Loan Note.  Demand, presentment, protest and notice of
nonpayment and protest are hereby waived by Borrowers.

 

Except
as provided in the Credit Agreement, this Extending Term Loan Note may not be
assigned by Lender to any Person.

 

[THIS
EXTENDING TERM LOAN NOTE, TOGETHER WITH THE OTHER EXTENDING TERM LOAN NOTES OF
EVEN DATE HEREWITH, ARE MADE AND GIVEN IN REPLACEMENT OF THOSE CERTAIN “TERM B
NOTES”, ISSUED BY CERTAIN BORROWERS  IN CONNECTION WITH THE PRIOR CREDIT
AGREEMENT, AND IS NOT INTENDED TO BE A NOVATION.](1)

 

THIS
EXTENDING TERM NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN
THAT STATE.

 

(1)  Include this reference to the
extent applicable.

 

[SIGNATURE
PAGES FOLLOW]

 

2

 

IN
WITNESS WHEREOF, each of the parties hereto have caused this Extending Term
Loan Note to be executed and delivered by its duly authorized officer as of the
date first set forth above.

 

	
   

  	
  BLOUNT, INC., a Delaware
  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GEAR
  PRODUCTS, INC., an Oklahoma corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WINDSOR
  FORESTRY TOOLS LLC, a Tennessee limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OMARK
  PROPERTIES, INC., an Oregon corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

EXTENDING TERM LOAN NOTE

 

 

EXHIBIT 1.1(c)(ii)

to

CREDIT AGREEMENT

 

FORM OF SWING LINE NOTE

 

New York, New York

 

	
  $

  	
   

  	
  ,
  20

  

 

FOR
VALUE RECEIVED, the undersigned, BLOUNT, INC., a Delaware corporation, GEAR
PRODUCTS, INC., an Oklahoma corporation, OMARK PROPERTIES, INC., an Oregon
corporation, and WINDSOR FORESTRY TOOLS LLC, a Tennessee limited liability
company (collectively, “Borrowers”), HEREBY, JOINTLY AND SEVERALLY,
PROMISE TO PAY to the order of GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware
corporation (“Swing Line Lender”) at the offices of GENERAL ELECTRIC
CAPITAL CORPORATION, a New York corporation, as Agent (in such capacity, the “Agent”)
at the Agent’s address at 201 Merritt 7, Norwalk, Connecticut 06856-5201, or at
such other place as Agent may designate from time to time in writing, in lawful
money of the United States of America and in immediately available funds, the
amount of                                    
DOLLARS AND NO CENTS ($       ,       ,       )
or, if less, the aggregate unpaid amount of all Swing Line Advances made to the
undersigned under the “Credit Agreement” (as hereinafter defined).  All capitalized terms used but not otherwise
defined herein have the meanings given to them in the Credit Agreement.

 

This
Swing Line Note is issued pursuant to that certain Second Amended and Restated
Credit Agreement dated as of December 4, 2009 by and among Borrowers, the other
Persons named therein as Credit Parties, Agent and the other Persons signatory
thereto from time to time as Lenders (including all annexes, exhibits and
schedules thereto and as from time to time amended, restated, supplemented or
otherwise modified, the “Credit Agreement”), and this Swing Line Note is
entitled to the benefit and security of the Credit Agreement, the Security
Agreement and all of the other Loan Documents. 
Reference is hereby made to the Credit Agreement for a statement of all
of the terms and conditions under which the Loans evidenced hereby are made and
are to be repaid.  The date and amount of
each Swing Line Advance made by Swing Line Lender to Borrowers, the rate of
interest applicable thereto and each payment made on account of the principal
thereof, shall be recorded by Agent on its books; provided that the
failure of Agent to make any such recordation shall not affect the obligations
of Borrowers to make a payment when due of any amount owing under the Credit
Agreement or this Swing Line Note in respect of the Swing Line Advances made by
Swing Line Lender to Borrowers.

 

The
principal amount of the indebtedness evidenced hereby shall be payable in the
amounts and on the dates specified in the Credit Agreement, the terms of which
are hereby incorporated herein by reference. 
Interest thereon shall be paid until such principal amount is 

 

 

paid
in full at such interest rates and at such times, and pursuant to such
calculations, as are specified in the Credit Agreement.

 

If
any payment on this Swing Line Note becomes due and payable on a day other than
a Business Day, the maturity thereof shall be extended to the next succeeding Business
Day and, with respect to payments of principal, interest thereon shall be
payable at the then applicable rate during such extension.

 

Upon
and after the occurrence of any Event of Default, this Swing Line Note may, as
provided in the Credit Agreement, and without demand, notice or legal process
of any kind, be declared, and immediately shall become, due and payable.

 

Time
is of the essence of this Swing Line Note. 
Demand, presentment, protest and notice of nonpayment and protest are
hereby waived by Borrowers.

 

THIS
SWING LINE NOTE IS MADE AND GIVEN IN REPLACEMENT OF THAT CERTAIN SWING LINE
NOTE DATED AS OF AUGUST 9, 2004, ISSUED BY CERTAIN BORROWERS IN CONNECTION WITH
THE PRIOR CREDIT AGREEMENT, AND IS NOT INTENDED TO BE A NOVATION.

 

THIS
SWING LINE NOTE IS GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE.

 

[SIGNATURE PAGES FOLLOW]

 

2

 

IN
WITNESS WHEREOF, each of the parties hereto have caused this Swing Line Note to
be executed and delivered by its duly authorized officer as of the date first
set forth above.

 

	
   

  	
  BLOUNT,
  INC., a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GEAR
  PRODUCTS, INC., an Oklahoma corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WINDSOR
  FORESTRY TOOLS LLC, a Tennessee limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
   Blount, Inc., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OMARK
  PROPERTIES, INC., an Oregon corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

SWING LINE NOTE

 

S-1

 

EXHIBIT 1.5(f)(i)

to

CREDIT AGREEMENT

 

FORM OF NOTICE OF CONVERSION/CONTINUATION- LIBOR

 

Reference
is made to that certain Second Amended and Restated Credit Agreement dated as
of December 4, 2009 by and among the undersigned (“Borrower Representative”),
the other Persons named therein as Credit Parties, General Electric Capital
Corporation (“Agent”) and the other Persons signatory thereto from time
to time as lenders (including all annexes, exhibits or schedules thereto, and
as from time to time amended, restated, supplemented or otherwise modified, the
“Credit Agreement”).  Capitalized
terms used herein without definition are so used as defined in the Credit
Agreement.

 

Borrower
Representative hereby gives irrevocable notice, pursuant to Section 1.5(f) of
the Credit Agreement, of its request to:

 

(a)           on [    date   
] convert $[                 ]of
the aggregate outstanding principal amount of the [                 ]
Loan, bearing interest at the [                 ]
Rate, into a(n) [                 ]
Loan [and, in the case of a LIBOR Loan, having a LIBOR Period of [                 ]
month(s)];

 

[(b)          on [   
date    ] continue $[                 ]of
the aggregate outstanding principal amount of the [                 ]
Loan, bearing interest at the LIBOR Rate, as a LIBOR Loan having a LIBOR Period
of [                 ]
month(s)].

 

Borrower
Representative hereby represents and warrants as of the date of the [conversion
of $[                 ]
of the aggregate outstanding principal amount of the [Index Rate Loan] into a
LIBOR Loan] [continuation of $[                 ]
of the aggregate outstanding principal amount of the [LIBOR Loan] as a LIBOR
Loan] no Default or Event of Default has occurred and is continuing and]
reaffirms the cross-guaranty provisions set forth in Section 12 of the Credit
Agreement and the guaranty and continuance of Agent’s Liens, on behalf of
itself and Lenders, pursuant to the Collateral Documents.

 

[remainder of page intentionally left blank]

 

 

IN
WITNESS WHEREOF, Borrower Representative has caused this Notice of
Conversion/Continuation be executed and delivered on behalf of the Borrowers
specified above by its duly authorized officer as of the date first set forth
above.

 

 

	
   

  	
  BLOUNT,
  INC., a Delaware corporation, as Borrower representative

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

EXHIBIT 5.13 TO CREDIT
AGREEMENT

 

FORM OF CREDIT AGREEMENT
JOINDER AGREEMENT

 

THIS CREDIT AGREEMENT JOINDER AGREEMENT (this “Agreement”),
is entered into as of                       ,
20     , by and between                                           ,
a                                              
(“Subsidiary”) and General Electric Capital Corporation, in its capacity
as agent (“Agent”) for the benefit of itself and all Lenders pursuant to
the Credit Agreement (as defined below).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to that certain Second Amended and
Restated Credit Agreement dated as of December 4, 2009 by and among Blount, Inc.,
a Delaware corporation, the other Credit Parties signatory thereto, Agent and
the other Persons signatory thereto from time to time as lenders (“Lenders”)
(including all annexes, exhibits and schedules thereto, as from time to time
amended, restated, supplemented or otherwise modified, the “Credit Agreement”),
Lenders have agreed to make the Loans 
to, and to incur Letter of Credit Obligations on behalf of Borrowers;
and

 

WHEREAS, Subsidiary is a newly formed Subsidiary of a
Credit Party, and consequently, pursuant to Section 5.13 of the Credit
Agreement, Credit Parties are required to cause Subsidiary to become a “Credit
Party” under the Credit Agreement, and the same may be accomplished by the
execution and delivery of this Agreement to Agent; and

 

WHEREAS, concurrent with the execution and delivery of
this Agreement to Agent, Subsidiary hereby unconditionally and expressly assumes
all of the Obligations of a Credit Party pursuant to the Credit Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and
the mutual covenants herein contained, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Subsidiary hereby agrees with Agent, for the benefit of itself and Lenders, as
follows:

 

1.             Defined Terms. 
All capitalized terms used but not otherwise defined herein have the
meanings given to them in Annex A to the Credit Agreement.

 

2.             Assumption. 
Subsidiary hereby acknowledges, agrees and confirms that, by its
execution of this Agreement, Subsidiary will be deemed to be a party to the
Credit Agreement and a “Credit Party” for all purposes of the Credit Agreement
and the other Loan Documents with the same force and effect as if originally
named therein as a Credit Party, and shall have assumed all of the Obligations
of a Credit Party thereunder.

 

3.             Covenants. 
Subsidiary hereby ratifies, as of the date hereof, and agrees to be
bound by, all of the terms, provisions and conditions contained in the Credit
Agreement, including, without limitation, (i) all of the representations
and warranties set forth in Article 3 of the Credit Agreement as they
relate to such Subsidiary, (ii) all of the affirmative and negative
covenants set forth in Articles 4, 5 and 6 of the Credit Agreement and (iii) all
of the undertakings 

 

 

set forth in Article 2 of the Credit
Agreement.  Each such representation,
warranty, covenant and undertaking are incorporated by reference herein in
their entirety.

 

4.             Representations and Warranties.  Subsidiary (i) is a corporation, a
limited liability company or a limited partnership duly organized, validly
existing and in good standing under the laws of its jurisdiction of
incorporation or organization, as applicable; (ii) is duly qualified to
conduct business and is in good standing under the laws of each other
jurisdiction where its ownership or lease of property or the conduct of its
business requires such qualification, except where the failure to be so
qualified would not result in exposure to losses, damages or liabilities that
could, in the aggregate, reasonably be expected to result in a Material Adverse
Effect; (iii) has the requisite power and authority and the legal right to
own and operate in all material respects its properties, to lease the property
it operates under lease, and to conduct its business in all material aspects as
now, heretofore and proposed to be conducted and has the requisite power and
authority and the legal right to pledge, mortgage, hypothecate or otherwise
encumber the Collateral; (iv) subject to specific representations
regarding Environmental Laws contained in the Credit Agreement, has all
material licenses, permits, consents or approvals from or by, and has made all
material filings with, and has given all material notices to, all Governmental
Authorities having jurisdiction to the extent required for such ownership,
operation and conduct; (v) is in compliance with its charter, constating
documents and bylaws or partnership or operating agreement, as applicable; and (vi) subject
to specific representations set forth in the Credit Agreement regarding ERISA,
Environmental Laws, Taxes and other laws, is in compliance with all applicable
provisions of law, except where the failure to comply, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.

 

5.             Additional Documents.  Upon the execution of this Agreement,
Subsidiary shall promptly execute and deliver to Agent such documents,
certificates and instruments as Agent shall reasonably request (including any
opinions of counsel and each of the documents required by Section 5.13 of
the Credit Agreement), in each case, in form and substance satisfactory to
Agent.

 

6.             Binding Effect. 
This Agreement shall be binding upon Subsidiary and shall inure to the
benefit of Agent and Lenders, together with their respective successors and
assigns.

 

7.             Governing Law. 
EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN ANY OF THE LOAN DOCUMENTS, IN
ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND
PERFORMANCE, THE LOAN DOCUMENTS AND THE OBLIGATIONS SHALL BE GOVERNED BY, AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW
YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE AND ANY
APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.  EACH CREDIT PARTY HEREBY CONSENTS AND AGREES
THAT THE STATE OR FEDERAL COURTS LOCATED IN NEW YORK COUNTY, CITY OF NEW YORK,
NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR
DISPUTES BETWEEN THE CREDIT PARTIES, AGENT AND LENDERS PERTAINING TO THIS
AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR TO ANY MATTER ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OF THE OTHER 

 

2

 

LOAN DOCUMENTS; PROVIDED, THAT AGENT, LENDERS
AND THE CREDIT PARTIES ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE
TO BE HEARD BY A COURT LOCATED OUTSIDE OF NEW YORK COUNTY; PROVIDED  FURTHER,  THAT NOTHING IN THIS AGREEMENT SHALL BE
DEEMED OR OPERATE TO PRECLUDE AGENT FROM BRINGING SUIT OR TAKING OTHER LEGAL
ACTION IN ANY OTHER JURISDICTION TO REALIZE ON THE COLLATERAL OR ANY OTHER
SECURITY FOR THE OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN
FAVOR OF AGENT, AND CREDIT PARTIES MAY MAKE ANY COUNTERCLAIMS RELATING TO
THE SAME MATTER, REQUESTS FOR EQUITABLE RELIEF RELATING TO THE SAME MATTER OR
AFFIRMATIVE DEFENSES IN CONNECTION THEREWITH. 
EACH CREDIT PARTY EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH
JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH CREDIT
PARTY HEREBY WAIVES ANY OBJECTION THAT SUCH CREDIT PARTY MAY HAVE BASED
UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM  NON
CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR
EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.  EACH CREDIT PARTY HEREBY WAIVES PERSONAL
SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION
OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINTS AND OTHER PROCESS MAY BE
MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH CREDIT PARTY AT THE
ADDRESS SET FORTH IN ANNEX I OF THE CREDIT AGREEMENT AND THAT SERVICE SO MADE
SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH CREDIT PARTY’S ACTUAL
RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE UNITED STATES
MAILS, PROPER POSTAGE PREPAID.

 

8.             Counterparts. 
This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original, but all such separate counterparts
shall together constitute but one and the same agreement. In proving this
Agreement in any judicial proceedings, it shall not be necessary to produce or
account for more than one such counterpart signed by the party against whom
such enforcement is sought.  Any
signatures delivered by a party by facsimile transmission or by other
electronic transmission shall be deemed an original signature hereto.

 

[remainder of this page intentionally left blank]

 

3

 

IN WITNESS WHEREOF, Subsidiary has caused this Agreement
to be duly executed by its authorized officers as of the day and year first
above written.

 

 

	
   

  	
   

  	
  [SUBSIDIARY], a [                                                                 ]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ACKNOWLEDGED
  THIS          DAY

  	
   

  	
   

  	
   

  
	
  OF
                                    ,
  20    

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  GENERAL ELECTRIC CAPITAL CORPORATION, as Agent

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Duly Authorized Signatory

  	
   

  	
   

  	
   

  

 

 

CREDIT AGREEMENT JOINDER AGREEMENT

 

 

EXHIBIT 9.1(c) TO CREDIT AGREEMENT

 

FORM OF ASSIGNMENT AGREEMENT

 

This
Assignment Agreement (this “Agreement”) is made as of
                      
    ,          by
and between                                                                     
(“Assignor Lender”) and
                                                
(“Assignee Lender”) and acknowledged and consented to by GENERAL
ELECTRIC CAPITAL CORPORATION, as agent (“Agent”).  All capitalized terms used in this Agreement
and not otherwise defined herein will have the respective meanings set forth in
the Credit Agreement as hereinafter defined.

 

RECITALS:

 

WHEREAS,
BLOUNT, INC., a Delaware corporation, the other Persons named therein as
Credit Parties, Agent and the other Persons signatory thereto from time to time
as Lenders (“Lenders”) are parties to that certain Second Amended and
Restated Credit Agreement dated as of December 4, 2009 (including all
annexes, exhibits or schedules thereto, and as from time to time amended,
restated, supplemented or otherwise modified, the “Credit Agreement”)
pursuant to which Assignor Lender has agreed to make certain Loans to, and
incur certain Letter of Credit Obligations for, certain Borrowers;

 

WHEREAS,
Assignor Lender desires to assign to Assignee Lender [all/a portion] of its
interest in the Loans (as described below), the Letter of Credit Obligations
and the Collateral securing such Obligations and to delegate to Assignee Lender
[all/a portion] of its Commitments and other duties with respect to such Loans,
Letter of Credit Obligations and Collateral securing such Obligations;

 

WHEREAS,
Assignee Lender desires to become a Lender under the Credit Agreement, and a
Lender under the Lender Agreement and to accept such assignment and delegation
from Assignor Lender; and

 

WHEREAS,
Assignee Lender desires to appoint Agent to serve as agent for Assignee Lender
under the Credit Agreement.

 

NOW,
THEREFORE, in consideration of the premises and the agreements, provisions, and
covenants herein contained, Assignor Lender and Assignee Lender agree as
follows:

 

1.             ASSIGNMENT,
DELEGATION, AND ACCEPTANCE

 

1.1           Assignment. 
Assignor Lender hereby transfers and assigns to Assignee Lender, without
recourse and without representations or warranties of any kind (except as set
forth in Section 3.2), [all/such percentage] of Assignor Lender’s
right, title, and interest in [the Revolving Loan], [the Existing Term Loan],
[the Extending Term Loan], [the Letter of Credit Obligations], the Loan
Documents and the Collateral as will result in Assignee Lender having as of the
Effective Date (as hereinafter defined) a Pro Rata Share thereof, as follows:

 

 

	
  Assignee
  Lender’s Loans

  	
   

  	
  Principal Amount

  	
   

  	
  Pro Rata Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Revolving Loan

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Existing Term Loan

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Extending Term Loan

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  

 

1.2           Delegation. 
Assignor Lender hereby irrevocably assigns and delegates to Assignee
Lender [all/a portion] of its Commitments and its other duties and obligations
as a Lender under the Loan Documents equivalent to

 

	
  [100%/      %]
  of Assignor Lender’s Revolving Loan Commitment

  	
   

  	
  Such
  percentage of the Revolving Loan Commitment representing a commitment of $               

  
	
   

  	
   

  	
   

  
	
  [100%/      %]
  of Assignor Lender’s Existing Term Loan Commitment

  	
   

  	
  Such
  percentage of the Existing Term Loan Commitment representing a commitment of
  $          

  
	
   

  	
   

  	
   

  
	
  [100%/      %]
  of Assignor Lender’s Extending Term Loan Commitment

  	
   

  	
  Such
  percentage of the Extending Term Loan Commitment representing a commitment of
  $            

  

 

1.3           Acceptance by Assignee Lender.  By its execution of this Agreement, Assignee
Lender irrevocably purchases, assumes and accepts such assignment and
delegation and agrees to be a Lender with respect to the delegated interest
under the Loan Documents and to be bound by the terms and conditions thereof.  By its execution of this Agreement, Assignor
Lender agrees, to the extent provided herein, to relinquish its rights and be
released from its obligations and duties under the Credit Agreement.

 

1.4           Effective Date. 
Such assignment and delegation by Assignor Lender and acceptance by
Assignee Lender will be effective and Assignee Lender will become a Lender
under the Loan Documents as of [the date of this Agreement] (“Effective Date”)
and upon payment of the Assigned Amount and the Assignment Fee (as each term is
defined below).  Interest and Fees
accrued prior to the Effective Date are for the account of Assignor Lender, and
Interest and Fees accrued from and after the Effective Date are for the account
of Assignee Lender.

 

2.             INITIAL
PAYMENT AND DELIVERY OF NOTES

 

2.1           Payment of the Assigned Amount.  Assignee Lender will pay to Assignor Lender,
in immediately available funds, not later than 12:00 noon (New York time) on
the Effective Date, an amount equal to its Pro Rata Share of the then
outstanding principal amount of the

 

 

Loans as set forth above in Section 1.1
[together with accrued interest, fees and other amounts as set forth on
Schedule 2.1] (the “Assigned Amount”).

 

2.2           Payment of Assignment Fee.  [Assignor Lender and/or Assignee Lender] will
pay to Agent, for its own account in immediately available funds, not later
than 12:00 noon (New York time) on the Effective Date, the assignment fee in
the amount of $3,500 (the “Assignment Fee”) as required pursuant to Section 9.1(a) of
the Credit Agreement.

 

2.3           Execution and Delivery of Notes.  Following payment of the Assigned Amount and
the Assignment Fee, Assignor Lender will deliver to Agent any Notes previously
delivered to Assignor Lender for redelivery to the applicable Borrower and upon
the request of such Assignee Lender, such Borrowers will execute new Notes
evidencing Assignee Lender’s [and Assignor Lender’s respective] Pro Rata Share
of the applicable Commitment after giving effect to the assignment described in
Section 1.  Each new Note, as
requested, will be issued in the aggregate maximum principal amount of the
applicable Commitment [of the Lender to whom such Note is issued] OR [the
Assignee Lender].

 

3.             REPRESENTATIONS,
WARRANTIES AND COVENANTS

 

3.1           Assignee Lender’s Representations, Warranties and
Covenants.  Assignee Lender hereby
represents, warrants, and covenants the following to Assignor Lender and Agent:

 

(a)           This Agreement is a legal, valid, and binding agreement of
Assignee Lender, enforceable according to its terms;

 

(b)           The execution and performance by Assignee Lender of its
duties and obligations under this Agreement and the Loan Documents will not
require any registration with, notice to, or consent or approval by any
Governmental Authority;

 

(c)           Assignee Lender is familiar with transactions of the kind
and scope reflected in the Loan Documents and in this Agreement;

 

(d)           Assignee Lender has made its own independent investigation
and appraisal of the financial condition and affairs of each Credit Party, has
conducted its own evaluation of the Loans and Letter of Credit Obligations, the
Loan Documents and each Credit Party’s creditworthiness, has made its decision
to become a Lender to Borrowers under the Credit Agreement independently and
without reliance upon Assignor Lender or Agent, and will continue to do so;

 

(e)           Assignee Lender is entering into this Agreement in the
ordinary course of its business, and is acquiring its interest in the Loans and
Letter of Credit Obligations for its own account, for investment purposes, and
not with a view to or for sale in connection with any subsequent distribution;
provided, however, that at all times the distribution of Assignee Lender’s
property shall, subject to the terms of the Credit Agreement, be and remain
within its control;

 

(f)            No future assignment or participation granted by Assignee
Lender pursuant to Section 9.1 of the Credit Agreement will require
Assignor Lender, Agent or

 

 

Borrower to file any registration statement with the
Securities and Exchange Commission or to apply to qualify under the blue sky
laws of any state;

 

(g)           Assignee Lender has no loans to, written or oral
agreements with, or equity or other ownership interest in any Credit Party;

 

(h)           Assignee Lender will not enter into any written or oral
agreement with, or acquire any equity or other ownership interest in, any
Credit Party without the prior written consent of Agent; and

 

(i)            As of the Effective
Date, Assignee Lender [(i) is not subject to capital adequacy or similar
requirements under Section 1.16(a) of the Credit Agreement, (ii) does
not require the payment of any increased costs under Section 1.16(b) of
the Credit Agreement, (iii) is not unable to fund LIBOR Loans under Section 1.16(c) of
the Credit Agreement, or (iv) is not subject to withholding taxes in
accordance with Section 1.15(a) of the Credit Agreement, and Assignee
Lender will indemnify Agent from and against all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, or expenses that
result from Assignee Lender’s failure to fulfill its obligations under the
terms of Section 1.15(d) of the Credit Agreement or from any other
inaccuracy in the foregoing.](1)

 

3.2           Assignor Lender’s Representations, Warranties and
Covenants.  Assignor Lender hereby
represents, warrants and covenants the following to Assignee Lender:

 

(a)           Assignor Lender is the legal and beneficial owner of the
Assigned Amount;

 

(b)           This Agreement is a legal, valid and binding agreement of
Assignor Lender, enforceable according to its terms;

 

(c)           The execution and performance by Assignor Lender of its
duties and obligations under this Agreement and the Loan Documents will not
require any registration with, notice to or consent or approval by any
Governmental Authority;

 

(d)           Assignor Lender has full power and authority, and has
taken all action necessary to execute and deliver this Agreement and to fulfill
the obligations hereunder and to consummate the transactions contemplated
hereby;

 

(e)           Assignor Lender is the legal and beneficial owner of the
interests being assigned hereby, free and clear of any adverse claim, lien,
encumbrance, security interest, restriction on transfer, purchase option, call
or similar right of a third party; and

 

(f)            This Assignment by Assignor Lender to Assignee Lender
complies, in all material respects, with the terms of the Loan Documents.

 

(1)  Delete bracketed language if an Event of
Default exists at the time of the assignment.

 

 

4.             LIMITATIONS
OF LIABILITY

 

Neither
Assignor Lender (except as provided in Section 3.2) nor Agent makes
any representations or warranties of any kind, nor assumes any responsibility
or liability whatsoever, with regard to (a) the Loan Documents or any
other document or instrument furnished pursuant thereto or the Loans, Letter of
Credit Obligations or other Obligations, (b) the creation, validity,
genuineness, enforceability, sufficiency, value or collectibility of any of
them, (c) the amount, value or existence of the Collateral, (d) the
perfection or priority of any Lien upon the Collateral, or (e) the
financial condition of any Credit Party or other obligor or the performance or
observance by any Credit Party of its obligations under any of the Loan
Documents.  Neither Assignor Lender nor
Agent has or will have any duty, either initially or on a continuing basis, to
make any investigation, evaluation, appraisal of, or any responsibility or
liability with respect to the accuracy or completeness of, any information
provided to Assignee Lender which has been provided to Assignor Lender or Agent
by any Credit Party.  Nothing in this
Agreement or in the Loan Documents shall impose upon the Assignor Lender or
Agent any fiduciary relationship in respect of the Assignee Lender.

 

5.             FAILURE
TO ENFORCE

 

No
failure or delay on the part of Agent or Assignor Lender in the exercise of any
power, right, or privilege hereunder or under any Loan Document will impair
such power, right, or privilege or be construed to be a waiver of any default
or acquiescence therein.  No single or
partial exercise of any such power, right, or privilege will preclude further
exercise thereof or of any other right, power, or privilege.  All rights and remedies existing under this
Agreement are cumulative with, and not exclusive of, any rights or remedies
otherwise available.

 

6.             NOTICES

 

Unless
otherwise specifically provided herein, any notice or other communication
required or permitted to be given will be in writing and addressed to the
respective party as set forth below its signature hereunder, or to such other
address as the party may designate in writing to the other.

 

7.             AMENDMENTS
AND WAIVERS

 

No
amendment, modification, termination, or waiver of any provision of this
Agreement will be effective without the written concurrence of Assignor Lender,
Agent and Assignee Lender.

 

8.             SEVERABILITY

 

Whenever
possible, each provision of this Agreement will be interpreted in such manner
as to be effective and valid under applicable law.  In the event any provision of this Agreement
is or is held to be invalid, illegal, or unenforceable under applicable law,
such provision will be ineffective only to the extent of such invalidity,
illegality, or unenforceability, without invalidating the remainder of such
provision or the remaining provisions of the Agreement.  In addition, in the event any provision of or
obligation under this Agreement is or is held to be invalid, illegal, or
unenforceable in any jurisdiction, the validity, legality, and

 

 

enforceability
of the remaining provisions or obligations in any other jurisdictions will not
in any way be affected or impaired thereby.

 

9.             SECTION TITLES

 

Section and
Subsection titles in this Agreement are included for convenience of reference
only, do not constitute a part of this Agreement for any other purpose, and
have no substantive effect.

 

10.           SUCCESSORS
AND ASSIGNS

 

This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns.

 

11.           APPLICABLE
LAW

 

THIS
AGREEMENT WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE.

 

12.           COUNTERPARTS

 

This
Agreement may be executed in any number of counterparts, each of which shall be
deemed to be an original, but all such separate counterparts shall together
constitute but one and the same agreement. In proving this Agreement in any
judicial proceedings, it shall not be necessary to produce or account for more
than one such counterpart signed by the party against whom such enforcement is
sought.  Any signatures delivered by a
party by facsimile transmission or by other electronic transmission shall be
deemed an original signature hereto.

 

[remainder
of page intentionally left blank]

 

 

IN
WITNESS WHEREOF, this Agreement has been duly executed as of the date first
written above.

 

	
  ASSIGNEE
  LENDER:

  	
   

  	
  ASSIGNOR
  LENDER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
  Notice
  Address:

  	
   

  	
  Notice
  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

ACKNOWLEDGED
AND CONSENTED TO:

 

GENERAL
ELECTRIC CAPITAL

CORPORATION

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:  Duly Authorized Signatory

  	
   

  

 

 

[IF NO EVENT OF DEFAULT HAS OCCURRED

AND IS CONTINUING:

 

AGREED
AND CONSENTED:

 

 

BLOUNT, INC.,
as Borrower Representative

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:]

  	
   

  

 

 

SCHEDULE 2.1

 

Assignor
Lender’s Loans

 

	
  Principal
  Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Revolving Loan

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Existing Term Loan

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Extending Term Loan

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Subtotal

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Accrued Interest

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Unused Line Fee

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Other + or -

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
   

  

 

All
determined as of the Effective Date.

 

 

Exhibit B-1

 

Application For Irrevocable Standby Letter of Credit

TO:  General Electric Capital
Corporation

 

Date

 

L/C
No.

(Bank
Use Only)

 

The
undersigned Applicant hereby requests General Electric Capital Corporation (“GE
Capital”) to issue and transmit by:

 

o Teletransmission
         o   Mail         o  Overnight Courier        
o   Other, Explain
                                                                    

the
Standby Letter of Credit (the “Credit”) substantially as set forth below.  In issuing the Credit, GE Capital is
expressly authorized to make such changes from the terms herein below set forth
as GE Capital, in its sole discretion, may deem advisable.

 

	
  Applicant
  (Full Name and Address)

  	
   

  	
  Advising Bank:  Wachovia Bank,
  National Association

  401 Linden Street, 1st Floor

  Winston-Salem, North Carolina 27101

  Attention: 
  GE Capital Corporation Standby

  Letter of Credit Team

  (DO NOT CHANGE THIS BLOCK)

  
	
   

  	
   

  	
   

  
	
  Beneficiary
  (Full Name and Address)

  	
   

  	
                              [ USD  unless 
  otherwise  specified ]

  Currency
  and Amount in Figures:

  Currency
  and Amount in Words:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Expiration
  Date:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  * Special Instructions

  Is EVERGREEN language required?      o  Yes     o  No

  If  yes, what is the number of
  days notification required for customary non-renewal notice?

  o  Thirty days   o  Sixty Days   o  Ninety days   o  Other

  ** IF
  AUTO, list the “final” or “cap” date, if any:              
  **

  

 

Charges:  GE Capital’s charges are for our account; all
other charges are to be paid by beneficiary.

 

Credit
to be available to payment against Beneficiary’s draft(s) at sight drawn
on GE Capital or its correspondent at GE Capital’s option accompanied by the
following documents:

 

o Statement, purportedly
signed by the Beneficiary, reading as follows (please state below exact wording
to appear on the statement):

 

o Other Documents

 

o Special
Conditions

 

o  Issue
substantially in form of attached specimen. 
(Specimen must also be signed by applicant)

 

Complete
only when the Beneficiary (Foreign Bank, or other Financial Institution) is to
issue its undertaking based on this Credit.

 

o            Request Beneficiary to issue
and deliver their (specify the type of undertaking)
                                                                              
in favor of
                                                                                                                                                                                          
for an amount not exceeding the amount specified above, effective immediately
relative to (specify contract number or other pertinent reference)
                                                                                                                                                                             
                                                                                                                                                                                                              
to expire on                                 .  (This date must be at least 15 days prior to
the expiry date indicated above).  It is
understood that if the Credit is issued in favor of any bank or other financial
or commercial entity which has issued or is to issue an undertaking on behalf
of the Applicant of the Credit in connection with the Credit, the Applicant
hereby agrees to remain liable under the Master Agreement and this Application
in respect of the Credit (even after its expiry date) until GE Capital is
released by such bank or entity.

 

Each
Applicant signing below affirms that it has fully read and agrees to this
Application.  In
consideration of GE Capital’s issuance of the Credit, the Applicant agrees to
be bound by the Master Agreement for Standby Letters of Credit between Applicant

 

 

and GE
Capital (the “Master Agreement”), the terms of which are incorporated by
reference.  All actions
to be taken by GE Capital hereunder or in connection with any Credit may be
taken by Wachovia Bank, National Association, or another bank designated by GE
Capital as GE Capital’s agent.

 

(Note:  If a bank, trust company, or other financial
institution signs as Applicant for its customer, or if two Applicants jointly
apply, both parties should sign below). 
Documents may be forwarded to you by the Beneficiary, or the negotiating
bank, in one mail.  You may forward
documents to us or our customhouse broker, if specified below, in one
mail.  We understand and agree that this
Credit will be subject to the Uniform Customs and Practice for Documentary
Credits of the International Chamber of Commerce currently in effect, and in
use by Bank (“UCP”) or the International Standby Practices, International
Chamber of Commerce Publication No. 590 or any subsequent version
currently in effect and in use by Bank (“ISP98”).

 

	
   

  	
   

  	
   

  
	
  (Print or type name of Applicant)

  	
   

  	
  (Print or type name of Applicant)

  
	
   

  	
   

  	
   

  
	
  (Address)

  	
   

  	
  (Address)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Authorized Signature (Title)

  	
   

  	
  Authorized Signature (Title)

  
	
   

  	
   

  	
   

  
	
  Authorized Signature (Title)

  	
   

  	
  Authorized Signature (Title)

  

 

Customer
Contact

 

GE CAPITAL USE ONLY

(NOTE:  Application will NOT
be processed if this  section is not
complete.)

 

	
  Approved:

  	
   

  	
  City:

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
  Telephone:

  	
   

  	
   

  
	
  (Print name and title)

  	
   

  	
   

  	
   

  	
   

  

 

 

GE
BUSINESS CODE: (CHECK ONE)

 

	
  CFS

  	
  x

  	
   

  	
  ML-CFS

  	
  o

  
	
  HFS

  	
  o

  	
   

  	
  ML-HFS

  	
  o

  
	
  EFS

  	
  o

  	
   

  	
  ML-EFS

  	
  o

  
	
  REF

  	
  o

  	
   

  	
  ML-REF

  	
  o

  
	
  FFC

  	
  o

  	
   

  	
  ML-FFC

  	
  o

  

 

GE
CONTACT:    (A
COPY OF THE COMPLETED LETTER OF CREDIT WILL BE SENT TO THIS GE CONTACT)

 

NAME:   WALTER WOODS   PHONE:  312-441-6937  FAX:  866-930-6411
 EMAIL: walter.woods@ge.com

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