Document:

Exhibit 4.15 to December 30, 2005 Form 10-Q

    EXHIBIT
      4.15

     

    EXECUTION
      COPY

     

    
      	 
	
               

              JP
                MORGAN

               

            
	
               

              CREDIT
                AGREEMENT

               

              dated
                as of

               

              October
                [7],
                2005

               

              among

               

              JOHNSON
                OUTDOORS INC.

               

              The
                Lenders Party Hereto

               

              and

               

              JPMORGAN
                CHASE BANK, N.A.

              as
                Administrative Agent

               

              __________________________________

            
	 
	
               

              J.P.
                MORGAN SECURITIES INC.

              as
                Sole Bookrunner and Sole Lead Arranger

               

               

               

            

    

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        TABLE
          OF CONTENTS

          

          
            	 	Page 
	
                    ARTICLE
                      I Definitions

                     

                    SECTION
                      1.01.  Defined Terms

                    SECTION
                      1.02.  Classification of Loans and Borrowings

                    SECTION
                      1.03.  Terms Generally

                    SECTION
                      1.04.  Accounting Terms; GAAP

                     

                    ARTICLE
                      II The Credits

                     

                    SECTION
                      2.01.  Commitments

                    SECTION
                      2.02.  Loans and Borrowings

                    SECTION
                      2.03.  Requests for Revolving Borrowings

                    SECTION
                      2.04.  Determination of Dollar Amounts

                    SECTION
                      2.05.  Swingline Loans

                    SECTION
                      2.06.  Letters of Credit

                    SECTION
                      2.07.  Funding of Borrowings

                    SECTION
                      2.08.  Interest Elections

                    SECTION
                      2.09.  Termination and Reduction of Commitments

                    SECTION
                      2.10.  Repayment of Loans; Evidence of Debt

                    SECTION
                      2.11.  Prepayment of Loans

                    SECTION
                      2.12.  Fees

                    SECTION
                      2.13.  Interest

                    SECTION
                      2.14.  Alternate Rate of Interest

                    SECTION
                      2.15.  Increased Costs

                    SECTION
                      2.16.  Break Funding Payments

                    SECTION
                      2.17.  Taxes

                    SECTION
                      2.18.  Payments Generally; Pro Rata Treatment; Sharing of
                      Set-offs

                    SECTION
                      2.19.  Mitigation Obligations; Replacement of Lenders

                    SECTION
                      2.20.  Expansion Option

                    SECTION
                      2.21.  Market Disruption

                    SECTION
                      2.22.  Judgment Currency

                     

                    ARTICLE
                      III Representations and Warranties

                     

                    SECTION
                      3.01.  Organization; Powers; Subsidiaries

                    SECTION
                      3.02.  Authorization; Enforceability

                    SECTION
                      3.03.  Governmental Approvals; No Conflicts

                    SECTION
                      3.04.  Financial Condition; No Material Adverse Change

                    SECTION
                      3.05.  Properties

                    SECTION
                      3.06.  Litigation and Environmental Matters

                    SECTION
                      3.07.  Compliance with Laws and Agreements

                    SECTION
                      3.08.  Investment and Holding Company Status

                    SECTION
                      3.09.  Taxes

                    SECTION 3.10. 
                      ERISA

                    SECTION
                      3.11.  Disclosure

                    SECTION
                      3.12.  Federal Reserve Regulations

                    SECTION
                      3.13.  No Default

                  	
                     

                     

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                    ARTICLE
                      IV Conditions

                     

                    SECTION
                      4.01. Effective Date

                    SECTION
                      4.02. Each Credit Event

                     

                    ARTICLE
                      V Affirmative Covenants

                     

                    SECTION
                      5.01. Financial Statements and Other Information

                    SECTION
                      5.02. Notices of Material Events

                    SECTION
                      5.03. Existence; Conduct of Business

                    SECTION
                      5.04. Payment of Obligations

                    SECTION
                      5.05. Maintenance of Properties; Insurance

                    SECTION
                      5.06. Books and Records; Inspection Rights

                    SECTION
                      5.07. Compliance with Laws

                    SECTION
                      5.08. Use of Proceeds and Letters of Credit

                    SECTION
                      5.09. Subsidiary Guaranty

                     

                    ARTICLE
                      VI Negative Covenants

                     

                    SECTION
                      6.01. Indebtedness

                    SECTION
                      6.02. Liens

                    SECTION
                      6.03. Fundamental Changes

                    SECTION
                      6.04. Investments, Loans, Advances, Guarantees and
                      Acquisitions

                    SECTION
                      6.05. Asset Sales

                    SECTION
                      6.06. Sale and Leaseback Transactions

                    SECTION
                      6.07. Swap Agreements

                    SECTION
                      6.08. Restricted Payments

                    SECTION
                      6.09. Transactions with Affiliates

                    SECTION
                      6.10. Restrictive Agreements

                    SECTION
                      6.11. Amendment of Material Documents

                    SECTION
                      6.12. [Intentionally Ommitted]

                    SECTION
                      6.13. Financial Covenants

                    SECTION
                      6.14. Fiscal Year

                  	
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                    ARTICLE
                      VII Events of Default

                     

                    ARTICLE
                      VIII The Administrative Agent

                     

                    ARTICLE
                      IX Miscellaneous

                     

                    SECTION
                      9.01. Notices

                    SECTION
                      9.02. Waivers; Amendments

                    SECTION
                      9.03. Expenses; Indemnity; Damage Waiver

                    SECTION
                      9.04. Successors and Assigns

                    SECTION
                      9.05. Survival

                    SECTION
                      9.06. Counterparts; Integration; Effectiveness

                    SECTION
                      9.07. Severability

                    SECTION
                      9.08. Right of Setoff

                    SECTION
                      9.09. Governing Law; Jurisdiction; Consent to Service of
                      Process

                    SECTION
                      9.10. WAIVER OF JURY TRIAL

                    SECTION
                      9.11. Headings

                    SECTION
                      9.12. Confidentiality

                    SECTION
                      9.13. USA PATRIOT Act

                  	
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                iii

                
                  

                

              

              
                
                

              

            

          

        

      

    

    

    
      	
              SCHEDULES:

            
	 
	
              Schedule
                1.01 - Excluded Subsidiaries

            
	
              Schedule
                2.01 - Commitments

            
	
              Schedule
                2.06 - Letters of Credit

            
	
              Schedule
                3.01 - Subsidiaries

            
	
              Schedule
                6.01 - Existing Indebtedness

            
	
              Schedule
                6.02 - Existing Liens

            
	
              Schedule
                6.04 - Existing Investments

            
	
              Schedule
                6.10 - Existing Restrictions

            
	 
	
              EXHIBITS:

               

            
	
              Exhibit
                A - Form of Assignment and Assumption

            
	
              Exhibit
                B - Form of Opinion of Loan Parties’ Counsel

            
	
              Exhibit
                C - Form of Increasing Lender Supplement

            
	
              Exhibit
                D - Form of Augmenting Lender Supplement

            
	
              Exhibit
                E - List of Closing Documents

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    CREDIT
      AGREEMENT dated as of October [7],
      2005
      among JOHNSON OUTDOORS INC., the LENDERS party hereto and JPMORGAN CHASE BANK,
      N.A., as Administrative Agent.

     

    The
      parties hereto agree as follows:

     

    ARTICLE
      I

     

    Definitions

     

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

     

    “ABR”,
      when
      used in reference to any Loan or Borrowing, refers to whether such Loan, or
      the
      Loans comprising such Borrowing, are bearing interest at a rate determined
      by
      reference to the Alternate Base Rate.

     

    “Acquisition”
means
      any transaction, or any series of related transactions, consummated on or after
      the date of this Agreement, by which the Borrower or any of its Subsidiaries
      (i)
      acquires any going business or all or substantially all of the assets of any
      firm, corporation or limited liability company or other business entity, or
      division thereof, whether through purchase of assets, merger or otherwise or
      (ii) directly or indirectly acquires (in one transaction or as the most recent
      transaction in a series of transactions) at least a majority (in number of
      votes) of the securities of a corporation which have ordinary voting power
      for
      the election of directors (other than securities having such power only by
      reason of the happening of a contingency) or a majority (by percentage of voting
      power) of the outstanding ownership interests of a partnership or limited
      liability company or other business entity. 

     

    “Adjusted
      LIBO Rate”
means,
      with respect to any Eurocurrency Borrowing for any Interest Period, an interest
      rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal
      to
      (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory
      Reserve Rate.

     

    “Administrative
      Agent”
means
      JPMorgan Chase Bank, N.A., in its capacity as administrative agent for the
      Lenders hereunder.

     

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

     

    “Affiliate”
means,
      with respect to a specified Person, another Person that directly, or indirectly
      through one or more intermediaries, Controls or is Controlled by or is under
      common Control with the Person specified.

     

    “Agreed
      Currencies”
means
      Dollars and euro.

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Applicable
      Percentage”
means,
      with respect to any Lender, the percentage of the total Commitments represented
      by such Lender’s Commitment. If the Commitments have terminated or expired, the
      Applicable Percentages shall be determined based upon the Commitments most
      recently in effect, giving effect to any assignments.

     

    “Applicable
      Rate”
means,
      for any day, with respect to any Eurocurrency Revolving Loan, or with respect
      to
      the facility fees and Letter of Credit fees payable hereunder, as the case
      may
      be, the applicable rate per annum set forth below under the caption
“Eurocurrency Spread” or “Facility Fee Rate” as the case may be, based upon the
      Leverage Ratio applicable on such date:

     

                            

      
        	
                Category:

              	
                Leverage
                  Ratio:

              	
                Eurocurrency
                  Spread

              	
                Facility
                  Fee Rate

              
	
                        1

              	
                <
                  1.5 to 1.0    

              	
                            0.475%

              	
                        0.150%

              
	
                        2

              	
                >
                  1.5
                  to 1.0 but <
                  2.0 to 1.0

              	
                            0.575%

              	
                        0.175%

              
	
                        3

              	
                >
                  2.0
                  to 1.0 but <
                  2.5 to 1.0

              	
                            0.675%

              	
                        0.200%

              
	
                        4

              	
                >
                  2.5
                  to 1.0 but <
                  3.0 to 1.0        

              	
                            0.750%

              	
                        0.250%

              
	
                        5

              	
                >
                  3.0
                  to 1.0

              	
                            1.20%

              	
                        0.300%

              

      

    

    

    For
      purposes of the foregoing, 

     

    (i)
      if
      at any
      time the Borrower fails to deliver the Financials on or before the
      30th
      day
      after the date the Financials are due, Category 5 (as identified in the above
      table) shall be deemed applicable for the period commencing five (5) Business
      Days after such 30th
      day and
      ending on the date which is five (5) Business Days after the Financials are
      actually delivered, after which the Category shall be determined in accordance
      with the table above as applicable;

     

    (ii)
      adjustments,
      if any, to the Category then in effect shall be effective five (5) Business
      Days
      after the Administrative Agent has received the applicable Financials (it being
      understood and agreed that each change in Category shall apply during the period
      commencing on the effective date of such change and ending on the date
      immediately preceding the effective date of the next such change);
      and

     

    (iii)
      notwithstanding
      the foregoing, Category 3 (as identified in the above table) shall be deemed
      to
      be applicable until the Administrative Agent’s receipt of the applicable
      Financials for the Borrower’s fiscal year ending on or about September 30, 2005,
      and adjustments to the Category then in effect shall thereafter be effected
      in
      accordance with the preceding paragraphs.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Approved
      Fund”
has
      the
      meaning assigned to such term in Section 9.04.

     

    “Approximate
      Equivalent Amount”
of
      any
      currency with respect to any amount of Dollars shall mean the Equivalent Amount
      of such currency with respect to such amount of Dollars on or as of such date,
      rounded up to the nearest whole amount of such currency as determined by the
      Administrative Agent from time to time.

     

    “Assignment
      and Assumption”
means
      an assignment and assumption entered into by a Lender and an assignee (with
      the
      consent of any party whose consent is required by Section 9.04), and accepted
      by
      the Administrative Agent, in the form of Exhibit
      A
      or any
      other form approved by the Administrative Agent.

     

    “Augmenting
      Lender”
has
      the
      meaning assigned to such term in Section 2.20.

     

    “Availability
      Period”
means
      the period from and including the Effective Date to but excluding the earlier
      of
      the Maturity Date and the date of termination of the Commitments.

     

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

     

    “Borrower”
means
      Johnson Outdoors Inc., a Wisconsin corporation.

     

    “Borrowing”
means
      (a) Revolving Loans of the same Type, made, converted or continued on the same
      date and, in the case of Eurocurrency Loans, as to which a single Interest
      Period is in effect or (b) a Swingline Loan.

     

    “Borrowing
      Request”
means
      a
      request by the Borrower for a Revolving Borrowing in accordance with Section
      2.03.

     

    “Business
      Day”
means
      any day that is not a Saturday, Sunday or other day on which commercial banks
      in
      New York City are authorized or required by law to remain closed; provided
      that,
      when used in connection with a Eurocurrency Loan, the term “Business
      Day”
shall
      also exclude any day on which banks are not open for dealings in Agreed
      Currencies in the London interbank market and, if the Borrowings or LC
      Disbursements which are the subject of a borrowing, drawing, payment,
      reimbursement or rate selection are denominated in euro, a day upon which such
      clearing system as is determined by the Administrative Agent to be suitable
      for
      clearing or settlement of euro is open for business.

     

    “Capital
      Expenditures”
means,
      without duplication, any expenditures or commitment to expend money for any
      purchase or other acquisition of any asset which would be classified as a fixed
      or capital asset on a consolidated balance sheet of the Borrower and its
      Subsidiaries prepared in accordance with GAAP.

     

    “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.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    “Change
      in Control”
means
      (a) the Johnson Family shall at any time fail to own stock having, in the
      aggregate, votes sufficient to elect at least a fifty-one percent (51%) majority
      of the Board of Directors of the Borrower; (b) the acquisition of ownership,
      directly or indirectly, beneficially or of record, by any Person or group
      (within the meaning of the Securities Exchange Act of 1934 and the rules of
      the
      Securities and Exchange Commission thereunder as in effect on the date hereof),
      of Equity Interests representing more than 30% of the aggregate ordinary voting
      power represented by the issued and outstanding Equity Interests of the
      Borrower; (c) occupation of a majority of the seats (other than vacant seats)
      on
      the board of directors of the Borrower by Persons who were neither (i) nominated
      by the board of directors of the Borrower nor (ii) appointed by directors so
      nominated; (d) the acquisition of direct or indirect Control of the Borrower
      by
      any Person or group; (e) except as expressly permitted under the terms of this
      Agreement, the Borrower consolidates with or merges into another Person or
      conveys, transfers or leases all or substantially all of its property to any
      Person, or any Person consolidates with or merges into the Borrower, in either
      event pursuant to a transaction in which the outstanding Equity Interests of
      the
      Borrower is reclassified or changed into or exchanged for cash, securities
      or
      other property; or (f) except as otherwise expressly permitted under the terms
      of this Agreement, the Borrower shall cease to own and control, directly or
      indirectly, all of the economic and voting rights associated with all of the
      outstanding Capital Stock of each of the Borrower’s Subsidiaries or shall cease
      to have the power, directly or indirectly, to elect all of the members of the
      board of directors of each of the Borrower’s Subsidiaries.

     

    “Change
      in Law”
means
      (a) the adoption of any law, rule or regulation after the date of this
      Agreement, (b) any change in any law, rule or regulation or in the
      interpretation or application thereof by any Governmental Authority after the
      date of this Agreement or (c) compliance by any Lender or any Issuing Bank
      (or,
      for purposes of Section 2.15(b), by any lending office of such Lender or by
      such
      Lender’s or such Issuing Bank’s holding company, if any) with any request,
      guideline or directive (whether or not having the force of law) of any
      Governmental Authority made or issued after the date of this
      Agreement.

     

    “Class”,
      when
      used in reference to any Loan or Borrowing, refers to whether such Loan, or
      the
      Loans comprising such Borrowing, are Revolving Loans or Swingline
      Loans.

     

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

     

    “Commitment”
means,
      with respect to each Lender, the commitment of such Lender to make Revolving
      Loans and to acquire participations in Letters of Credit and Swingline Loans
      hereunder, expressed as an amount representing the maximum aggregate amount
      of
      such Lender’s Revolving Credit Exposure hereunder, as such commitment may be (a)
      reduced from time to time pursuant to Section 2.09, (b) increased from time
      to
      time pursuant to Section 2.20 and (c) reduced or increased from time to time
      pursuant to assignments by or to such Lender pursuant to Section 9.04. The
      initial amount of each Lender’s Commitment is set forth on Schedule
      2.01,
      or in
      the Assignment and Assumption pursuant to which such Lender shall have assumed
      its Commitment, as applicable. The initial aggregate amount of the Lenders’
Commitments is $75,000,000.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “Computation
      Date”
is
      defined in Section 2.04.

     

    “Consolidated
      EBITDA”
means
      Consolidated Net Income plus,
      to the
      extent deducted from revenues in determining Consolidated Net Income, (i)
      Consolidated Interest Expense, (ii) expense for taxes paid or accrued, (iii)
      depreciation, (iv) amortization, (v) extraordinary non-cash losses incurred
      other than in the ordinary course of business minus,
      to the
      extent included in Consolidated Net Income, extraordinary non-cash gains
      realized other than in the ordinary course of business, and (iv) expenses not
      to
      exceed $2,500,000 incurred by the Borrower in connection with its proposed
      2005
      going private transaction during the twelve month period ending July 31, 2005,
      all calculated for the Borrower and its Subsidiaries in accordance with GAAP
      on
      a consolidated basis.

     

    “Consolidated
      Interest Expense”
means,
      with reference to any period, total interest expense (including that
      attributable to Capital Lease Obligations) of the Borrower and its Subsidiaries
      for such period with respect to all outstanding Indebtedness of the Borrower
      and
      its Subsidiaries (including all commissions, discounts and other fees and
      charges owed with respect to letters of credit and bankers’ acceptance financing
      and net costs under Swap Agreements in respect of interest rates to the extent
      such net costs are allocable to such period in accordance with GAAP), calculated
      on a consolidated basis for the Borrower and its Subsidiaries for such period
      in
      accordance with GAAP.

     

    “Consolidated
      Net Income”
means,
      with reference to any period, the net income (or loss) of the Borrower and
      its
      Subsidiaries calculated in accordance with GAAP on a consolidated basis (without
      duplication) for such period.

     

    “Consolidated
      Net Worth”
means,
      at any time, the total consolidated stockholders’ equity of the Borrower and its
      Subsidiaries calculated in accordance with GAAP on a consolidated basis as
      of
      such time.

     

    “Consolidated
      Rent Expense”
means,
      with reference to any period, all payments under Operating Leases to the extent
      deducted in computing Consolidated Net Income, calculated in accordance with
      GAAP for the Borrower and its Subsidiaries on a consolidated basis for such
      period.

     

    “Consolidated
      Total Assets”
means,
      as of the date of any determination thereof, total assets of the Borrower and
      its Subsidiaries calculated in accordance with GAAP on a consolidated basis
      as
      of such date.

     

    “Consolidated
      Total Indebtedness”
means
      at any time the sum, without duplication, of the aggregate Indebtedness of
      the
      Borrower and its Subsidiaries calculated on a consolidated basis as of such
      time
      in accordance with GAAP.

     

    “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.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    “Country
      Risk Event” means:

     

    (i) any
      law,
      action or failure to act by any Governmental Authority in the Borrower’s or
      Letter of Credit beneficiary’s country which has the effect of:

    

    (a) changing
      the obligations under the relevant Letter of Credit, the Credit Agreement or
      any
      of the other Loan Documents as originally agreed or otherwise creating any
      additional liability, cost or expense to an Issuing Bank, the Lenders or the
      Administrative Agent,

    

    (b) changing
      the ownership or control by the Borrower or Letter of Credit beneficiary of
      its
      business, or

    

    (c) preventing
      or restricting the conversion into or transfer of the applicable Agreed
      Currency;

    

    (ii) force
      majeure; or

    

    (iii) any
      similar event

     

    which,
      in
      relation to (i), (ii) and (iii), directly or indirectly, prevents or restricts
      the payment or transfer of any amounts owing under the relevant Letter of Credit
      in the applicable Agreed Currency into an account designated by the
      Administrative Agent or an Issuing Bank and freely available to the
      Administrative Agent or an Issuing Bank.

     

    “Credit
      Event”
means
      a
      Borrowing, an LC Disbursement or both.

     

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

     

    “Dollars”
or
      “$”
refers
      to lawful money of the United States of America.

     

    “Dollar
      Amount”
of
      any
      currency at any date shall mean (i) the amount of such currency if such currency
      is Dollars or (ii) the equivalent in such currency of such amount of Dollars
      if
      such currency is a Foreign Currency, calculated on the basis of the arithmetical
      mean of the buy and sell spot rates of exchange of the Administrative Agent
      for
      such currency on the London market at 11:00 a.m., London time, on or as of
      the
      most recent Computation Date provided for in Section 2.04.

     

    “Domestic
      Subsidiary”
means
      a
      Subsidiary organized under the laws of a jurisdiction located in the United
      States of America.

     

    “Effective
      Date”
means
      the date on which the conditions specified in Section 4.01 are satisfied (or
      waived in accordance with Section 9.02).

     

    
      
         

        
        

      

      
        6

        
          

        

      

      
        
        

      

    

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

     

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

     

    “Equity
      Interests”
means
      shares of capital stock, partnership interests, membership interests in a
      limited liability company, beneficial interests in a trust or other equity
      ownership interests in a Person, and any warrants, options or other rights
      entitling the holder thereof to purchase or acquire any such equity
      interest.

     

    “Equivalent
      Amount”
of
      any
      currency with respect to any amount of Dollars at any date shall mean the
      equivalent in such currency of such amount of Dollars, calculated on the basis
      of the arithmetical mean of the buy and sell spot rates of exchange of the
      Administrative Agent for such other currency at 11:00 a.m., London time, on
      the
      date on or as of which such amount is to be determined.

     

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

     

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

     

    “ERISA
      Event”
means
      (a) any “reportable event”, as defined in Section 4043 of ERISA or the
      regulations issued thereunder with respect to a Plan (other than an event for
      which the 30-day notice period is waived); (b) the existence with respect to
      any
      Plan of an “accumulated funding deficiency” (as defined in Section 412 of the
      Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant
      to
      Section 412(d) of the Code or Section 303(d) of ERISA of an application for
      a
      waiver of the minimum funding standard with respect to any Plan; (d) the
      incurrence by the Borrower or any of its ERISA Affiliates of any liability
      under
      Title IV of ERISA with respect to the termination of any Plan; (e) the receipt
      by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator
      of
      any notice relating to an intention to terminate any Plan or Plans or to appoint
      a trustee to administer any Plan; (f) the incurrence by the Borrower or any
      of
      its ERISA Affiliates of any liability with respect to the withdrawal or partial
      withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the
      Borrower or any ERISA Affiliate of any notice, or the receipt by any
      Multiemployer Plan from the Borrower or
      any
      ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability
      or a determination that a Multiemployer Plan is, or is expected to be, insolvent
      or in reorganization, within the meaning of Title IV of
      ERISA.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    “EU”
means
      the European Union.

     

    “euro”
and/or
      “EUR”
means
      the single currency of the participating member states of the EU.

     

    “Eurocurrency”,
      when
      used in reference to a currency means an Agreed Currency and when used in
      reference to any Loan or Borrowing, refers to whether such Loan, or the Loans
      comprising such Borrowing, are bearing interest at a rate determined by
      reference to the Adjusted LIBO Rate.

     

    “Eurocurrency
      Payment Office”
of
      the
      Administrative Agent shall mean, for each of the Agreed Currencies which is
      a
      Foreign Currency, the office, branch, affiliate or correspondent bank of the
      Administrative Agent for such currency as specified from time to time by the
      Administrative Agent to the Borrower and each Lender. On the date hereof, the
      Eurocurrency Payment Office for each Agreed Currency is JPMorgan Chase Bank,
      N.A., Loan and Operations, 131 S. Dearborn Street, Chicago, IL 60670, Attention
      of Edna Guerra (Facsimile No. (312) 385-7090 and e-mail edna.guerra@jpmchase.com).

     

    “Event
      of Default”
has
      the
      meaning assigned to such term in Article VII.

     

    “Excluded
      Subsidiaries”
means
      the Subsidiaries listed in Schedule 1.01 hereto.

     

    “Excluded
      Taxes”
means,
      with respect to the Administrative Agent, any Lender, any Issuing Bank or any
      other recipient of any payment to be made by or on account of any obligation
      of
      the Borrower hereunder, (a) income or franchise taxes imposed on (or measured
      by) its net income by the United States of America, or by the jurisdiction
      under
      the laws of which such recipient is organized or in which its principal office
      is located or, in the case of any Lender, in which its applicable lending office
      is located, (b) any branch profits taxes imposed by the United States of America
      or any similar tax imposed by any other jurisdiction in which the Borrower
      is
      located and (c) in the case of a Foreign Lender (other than an assignee pursuant
      to a request by the Borrower under Section 2.19(b)), any withholding tax that
      is
      imposed on amounts payable to such Foreign Lender at the time such Foreign
      Lender becomes a party to this Agreement (or designates a new lending office)
      or
      is attributable to such Foreign Lender’s failure to comply with Section 2.17(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 2.17(a).

     

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

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

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

     

    “Financials”
means
      the annual or quarterly financial statements, and accompanying certificates
      and
      other documents, of the Borrower required to be delivered pursuant to Section
      5.01(a) or 5.01(b).

     

    “Fixed
      Charge Coverage Ratio”
means,
      the ratio, determined as of the end of each fiscal quarter of the Borrower
      for
      the most-recently ended four fiscal quarters, of (i) the sum of (a) Consolidated
      EBITDA for such period, plus (b) Consolidated Rent Expense for such period,
      to
      (ii) the sum of (a) cash Interest Expense during such period, plus (b)
      Consolidated Rent Expense for such period, all calculated for the Borrower
      and
      its Subsidiaries on a consolidated basis in accordance with GAAP, provided
      that
      solely for purposes of Section 6.13(a), to the extent the Borrower or any
      Subsidiary makes any acquisition permitted pursuant to Section 6.04 or
      disposition of assets outside the ordinary course of business that is permitted
      by Section 6.05 during the period of four fiscal quarters of the Borrower most
      recently ended, the Fixed Charge Coverage Ratio shall be calculated after giving
      pro forma effect thereto (including pro forma adjustments arising out of events
      which are directly attributable to the acquisition or the disposition of assets,
      are factually supportable and are expected to have a continuing impact, in
      each
      case as determined on a basis consistent with Article 11 of Regulation S-X
      of
      the Securities Act of 1933, as amended, as interpreted by the SEC, and as
      certified by a Financial Officer of the Borrower and reasonably satisfactory
      to
      the Administrative Agent), as if such acquisition or such disposition (and
      any
      related incurrence, repayment or assumption of Indebtedness) had occurred in
      the
      first day of such four quarter period.

     

    “Foreign
      Currencies”
means
      each Agreed Currency other than Dollars.

     

    “Foreign
      Currency LC Exposure”
means,
      at any time, the sum of (a) the Dollar Amount of the aggregate undrawn and
      unexpired amount of all outstanding Foreign Currency Letters of Credit at such
      time plus (b) the aggregate principal Dollar Amount of all LC Disbursements
      in
      respect of Foreign Currency Letters of Credit that have not yet been reimbursed
      at such time.

     

    “Foreign
      Currency Letter of Credit”
means
      a
      Letter of Credit denominated in a Foreign Currency.

     

    “Foreign
      Currency Sublimit”
means
      $25,000,000.

     

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

     

    “Foreign
      Subsidiary”
means
      any Subsidiary other than a Domestic Subsidiary.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

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

     

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

     

    “Guarantee”
of
      or
      by any Person (the “guarantor”)
      means
      any obligation, contingent or otherwise, of the guarantor guaranteeing or having
      the economic effect of guaranteeing any Indebtedness or other obligation of
      any
      other Person (the “primary
      obligor”)
      in any
      manner, whether directly or indirectly, and including any obligation of the
      guarantor, direct or indirect, (a) to purchase or pay (or advance or supply
      funds for the purchase or payment of) such Indebtedness or other obligation
      or
      to purchase (or to advance or supply funds for the purchase of) any security
      for
      the payment thereof, (b) to purchase or lease property, securities or services
      for the purpose of assuring the owner of such Indebtedness or other obligation
      of the payment thereof, (c) to maintain working capital, equity capital or
      any
      other financial statement condition or liquidity of the primary obligor so
      as to
      enable the primary obligor to pay such Indebtedness or other obligation or
      (d)
      as an account party in respect of any letter of credit or letter of guaranty
      issued to support such Indebtedness or obligation; provided,
      that
      the term Guarantee shall not include endorsements for collection or deposit
      in
      the ordinary course of business.

     

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

     

    “Hostile
      Acquisition”
means
      (a) the acquisition of the Equity Interests of a Person through a tender offer
      or similar solicitation of the owners of such Equity Interests which has not
      been approved (prior to such acquisition) by the board of directors (or any
      other applicable governing body) of such Person or by similar action if such
      Person is not a corporation and (b) any such acquisition as to which such
      approval has been withdrawn.

     

    “Increasing
      Lender”
has
      the
      meaning assigned to such term in Section 2.20.

     

    “Indebtedness”
of
      any
      Person means, without duplication, (a) all obligations of such Person for
      borrowed money or with respect to deposits or advances of any kind, (b) all
      obligations of such Person evidenced by bonds, debentures, notes or similar
      instruments, (c) all obligations of such Person upon which interest charges
      are customarily paid, (d) all obligations of such Person under conditional
      sale or other title retention agreements relating to property acquired by such
      Person, (e) all obligations of such Person in respect of the deferred
      purchase price of property or services (excluding current accounts payable
      incurred in the ordinary course of business), (f) 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 Indebtedness secured
      thereby has been assumed, (g) all Guarantees by such Person of Indebtedness
      of others, (h) all Capital Lease Obligations of such Person, (i) all
      obligations, contingent or otherwise, of such Person as an account party in
      respect of letters of credit and letters of guaranty and (j) all obligations,
      contingent or otherwise, of such Person in respect of bankers’ acceptances. The
      Indebtedness of any Person shall include the Indebtedness of any other entity
      (including any partnership in which such Person is a general partner) to the
      extent such Person is liable therefor as a result of such Person’s ownership
      interest in or other relationship with such entity, except to the extent the
      terms of such Indebtedness provide that such Person is not liable
      therefor.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    “Indemnified
      Taxes”
means
      Taxes other than Excluded Taxes.

     

    “Information
      Memorandum”
means
      the Confidential Information Memorandum dated August 2005 relating to the
      Borrower and the Transactions.

     

    “Interest
      Election Request”
means
      a
      request by the Borrower to convert or continue a Revolving Borrowing in
      accordance with Section 2.08.

     

    “Interest
      Payment Date”
means
      (a) with respect to any ABR Loan (other than a Swingline Loan), the last day
      of
      each March, June, September and December and the Maturity Date, (b) with respect
      to any Eurocurrency Loan, the last day of the Interest Period applicable to
      the
      Borrowing of which such Loan is a part and, in the case of a Eurocurrency
      Borrowing with an Interest Period of more than three months’ duration, each day
      prior to the last day of such Interest Period that occurs at intervals of three
      months’ duration after the first day of such Interest Period and the Maturity
      Date and (c) with respect to any Swingline Loan, the day that such Loan is
      required to be repaid and the Maturity Date.

     

    “Interest
      Period”
means
      with respect to any Eurocurrency Borrowing, the period commencing on the date
      of
      such Borrowing and ending on the numerically corresponding day in the calendar
      month that is one, two, three or six months thereafter, as the Borrower may
      elect; provided, that (i) if any Interest Period would end on a day other than
      a
      Business Day, such Interest Period shall be extended to the next succeeding
      Business Day unless, in the case of a Eurocurrency Borrowing only, such next
      succeeding Business Day would fall in the next calendar month, in which case
      such Interest Period shall end on the next preceding Business Day and (ii)
      any
      Interest Period pertaining to a Eurocurrency Borrowing that commences on the
      last Business Day of a calendar month (or on a day for which there is no
      numerically corresponding day in the last calendar month of such Interest
      Period) shall end on the last Business Day of the last calendar month of such
      Interest Period. For purposes hereof, the date of a Borrowing initially shall
      be
      the date on which such Borrowing is made and, in the case of a Revolving
      Borrowing, thereafter shall be the effective date of the most recent conversion
      or continuation of such Borrowing.

     

    “Investment”
of
      a
      Person means any loan, advance (other than commission, travel and similar
      advances to officers, employees made in the ordinary course of business),
      extension of credit (other than receivables and inventory arising in the
      ordinary course of business) or contribution of capital by such Person; stocks,
      bonds, mutual funds, partnership interests, notes, debentures or other
      securities owned by such Person; any deposit accounts and certificates of
deposit
      owned by such Person; and structured notes, derivative financial instruments
      and
      other similar instruments or contracts owned by such Person.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    “Issuing
      Bank”
means
      each of JPMorgan Chase Bank, N.A., LaSalle Bank National Association and each
      other Lender which agrees to act as an Issuing Bank and is approved by the
      Administrative Agent (such approval not to be unreasonably withheld), in its
      capacity as an issuer of Letters of Credit hereunder, and its successors in
      such
      capacity as provided in Section 2.06(i). Each Issuing Bank may, in its
      discretion, arrange for one or more Letters of Credit to be issued by Affiliates
      of such Issuing Bank, in which case the term “Issuing Bank” shall include any
      such Affiliate with respect to Letters of Credit issued by such
      Affiliate.

     

    “Johnson
      Family”
shall
      mean at any time, collectively, Samuel C. Johnson, his wife and their children
      and grandchildren, the executor or administrator of the estate or other legal
      representative of any such Person, all trusts for the benefit of the foregoing
      or their heirs or any one or more of them, and all partnerships, corporations
      or
      other entities directly or indirectly controlled by the foregoing or any one
      or
      more of them.

     

    “LC
      Disbursement”
means
      a
      payment made by an Issuing Bank pursuant to a Letter of Credit.

     

    “LC
      Exposure”
means,
      at any time, the sum of (a) the aggregate undrawn Dollar Amount of all
      outstanding Letters of Credit at such time plus (b) the aggregate Dollar Amount
      of all LC Disbursements that have not yet been reimbursed by or on behalf of
      the
      Borrower at such time. The LC Exposure of any Lender at any time shall be its
      Applicable Percentage of the total LC Exposure at such time.

     

    “Lenders”
means
      the Persons listed on Schedule
      2.01
      and any
      other Person that shall have become a party hereto pursuant to an Assignment
      and
      Assumption, other than any such Person that ceases to be a party hereto pursuant
      to an Assignment and Assumption. Unless the context otherwise requires, the
      term
“Lenders” includes the Swingline Lender.

     

    “Letter
      of Credit”
means
      any standby or commercial letter of credit issued pursuant to this
      Agreement.

     

    “Leverage
      Ratio”
means,
      on any date, the ratio of (a) Consolidated Total Indebtedness on such date
      to
      (b) Consolidated EBITDA for the period of four consecutive fiscal quarters
      ended
      on such date (or, if such date is not the last day of a fiscal quarter, ended
      on
      the last day of the fiscal quarter most recently ended prior to such date),
      provided that solely for purposes of the definition of “Applicable Rate” and
      Section 6.13(b), (i) Consolidated Total Indebtedness shall be calculated as
      of
      the last day of each fiscal quarter based upon the average quarter-end
      Consolidated Total Indebtedness for the four-quarter period ending as of the
      last day of such fiscal quarter and (ii) to the extent the Borrower or any
      Subsidiary makes any acquisition permitted pursuant to Section 6.04 or
      disposition of assets outside the ordinary course of business that is permitted
      by Section 6.05 during the period of four fiscal quarters of the Borrower most
      recently ended, the Leverage Ratio shall be calculated after giving pro forma
      effect thereto (including pro forma adjustments arising out of events which
      are
      directly attributable to the acquisition or the disposition of assets, are
      factually supportable and are expected
      to have a continuing impact, in each case as determined on a basis consistent
      with Article 11 of Regulation S-X of the Securities Act of 1933, as amended,
      as
      interpreted by the SEC, and as certified by a Financial Officer of the
      Borrower), as if such acquisition or such disposition (and any related
      incurrence, repayment or assumption of Indebtedness) had occurred in the first
      day of such four quarter period.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    “LIBO
      Rate”
means,
      with respect to any Eurocurrency Borrowing for any Interest Period, the rate
      appearing on Page 3750 of the Dow Jones Market Service (or on any successor
      or
      substitute page of such Service, or any successor to or substitute for such
      Service, providing rate quotations comparable to those currently provided on
      such page of such Service, as determined by the Administrative Agent from time
      to time for purposes of providing quotations of interest rates applicable to
      deposits in the relevant Agreed Currency in the London interbank market) at
      approximately 11:00 a.m., London time, two (2) Business Days prior to the
      commencement of such Interest Period, as the rate for deposits in the relevant
      Agreed Currency with a maturity comparable to such Interest Period. In the
      event
      that such rate is not available at such time for any reason, then the
“LIBO
      Rate”
with
      respect to such Eurocurrency Borrowing for such Interest Period shall be the
      rate at which deposits in the relevant Agreed Currency in an Equivalent Amount
      of $5,000,000 and for a maturity comparable to such Interest Period are offered
      by the principal London office of the Administrative Agent in immediately
      available funds in the London interbank market at approximately 11:00 a.m.,
      London time, two (2) Business Days prior to the commencement of such Interest
      Period.

     

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

     

    “Loans”
means
      the loans made by the Lenders to the Borrower pursuant to this
      Agreement.

     

    “Loan
      Documents”
means
      this Agreement, the Subsidiary Guaranty, any promissory notes executed and
      delivered pursuant to Section 2.10(e) and any and all other instruments and
      documents executed and delivered in connection with any of the
      foregoing.

     

    “Loan
      Parties”
means,
      collectively, the Borrower and the Subsidiary Guarantors.

     

    “Local
      Time”
means
      (i) Chicago time in the case of a LC Disbursement denominated in Dollars and
      (ii) local time at the place of the relevant LC Disbursement (or such earlier
      local time as is necessary for the relevant funds to be received and transferred
      to the Administrative Agent for same day value on the date the relevant
      reimbursement obligation is due) in the case of a LC Disbursement denominated
      in
      a Foreign Currency.

     

    “Material
      Adverse Effect”
means
      a
      material adverse effect on (a) the business, assets, property, condition
      (financial or otherwise), operations or prospects, of the Borrower and the
      Subsidiaries taken as a whole or (b) the validity or enforceability of this
      Agreement any or any
      and
      all other Loan Documents or the rights or remedies of the Administrative Agent
      and the Lenders thereunder.

    
      
         

        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    “Material
      Indebtedness”
means
      Indebtedness (other than the Loans and Letters of Credit), or obligations in
      respect of one or more Swap Agreements, of any one or more of the Borrower
      and
      its Subsidiaries in an aggregate principal amount exceeding $5,000,000. For
      purposes of determining Material Indebtedness, the “principal amount” of the
      obligations of the Borrower or any Subsidiary in respect of any Swap Agreement
      at any time shall be the maximum aggregate amount (giving effect to any netting
      agreements) that the Borrower or such Subsidiary would be required to pay if
      such Swap Agreement were terminated at such time.

     

    “Maturity
      Date”
means
      October [7],
      2010.

     

    “Moody’s”
means
      Moody’s Investors Service, Inc.

     

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

     

    “New
      Money Credit Event”
means
      with respect to any Issuing Bank, any increase (directly or indirectly) in
      such
      Issuing Bank’s exposure (whether by way of additional credit or banking
      facilities or otherwise, including as part of a restructuring) to the Borrower
      or any Governmental Authority in the Borrower’s or any applicable Letter of
      Credit beneficiary’s country occurring by reason of (i) any law, action or
      requirement of any Governmental Authority in the Borrower’s or such Letter of
      Credit beneficiary’s country, or (ii) any request in respect of external
      indebtedness of borrowers in the Borrower’s or such Letter of Credit
      beneficiary’s country applicable to banks generally which conduct business with
      such borrowers, or (iii) any agreement in relation to clause (i) or (ii), in
      each case to the extent calculated by reference to the aggregate Revolving
      Credit Exposures outstanding prior to such increase.

     

    “Operating
      Lease”
of
      a
      Person means any lease of property (other than a capital lease under GAAP)
      by
      such Person as lessee which has an original term (including any required
      renewals and any renewals effective at the option of the lessor) of one year
      or
      more.

     

    “Original
      Currency”
has
      the
      meaning set forth in Section 2.18.

     

    “Other
      Subsidiary Investment”
means,
      for any period of determination, the sum, without duplication, of (i) the
      aggregate principal amount of all intercompany loans made during such period
      by
      any Loan Party to any Subsidiary which is not a Loan Party (less all repayments
      in immediately available funds of such intercompany loans during such period);
      (i) the aggregate principal amount of Indebtedness of any Subsidiary which
      is
      not a Loan Party at the end of such period subject to Guarantees by any Loan
      Party; (iii) all Investments made during such period by any Loan Party in any
      Subsidiary which is not a Loan Party; and (iv) an amount equal to the net
      benefit derived by any Subsidiary which is not a Loan Party resulting from
      any
      non-arm’s-length transactions, or any other transfer of assets conducted, in
      each case entered into during such period, between any Loan Party, on the one
      hand, and such Subsidiary, on the other hand, other than (a) transactions in
      the
      ordinary course of business and (b) in respect of legal, accounting,
reporting,
      listing and similar administrative services provided by any Loan Party to such
      Subsidiary in the ordinary course of business consistent with past
      practice.

    
      
         

        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

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

     

    “Overnight
      Foreign Currency Rate”
means,
      for any amount payable in a Foreign Currency, the rate of interest per annum
      as
      determined by the Administrative Agent at which overnight or weekend deposits
      in
      the relevant currency (or if such amount due remains unpaid for more than three
      Business Days, then for such other period of time as the Administrative Agent
      may elect) for delivery in immediately available and freely transferable funds
      would be offered by the Administrative Agent to major banks in the interbank
      market upon request of such major banks for the relevant currency as determined
      above and in an amount comparable to the unpaid principal amount of the related
      Credit Event.

     

    “Participant”
has
      the
      meaning set forth in Section 9.04.

     

    “PBGC”
means
      the Pension Benefit Guaranty Corporation referred to and defined in ERISA and
      any successor entity performing similar functions.

     

    “Permitted
      Acquisition”
means
      any Acquisition (whether by purchase, merger, consolidation or otherwise but
      excluding in any event a Hostile Acquisition) or series of related acquisitions
      by the Borrower or any Subsidiary of (i) all or substantially all the assets
      of,
      (ii) all the Equity Interests in, a Person or division or line of business
      of a
      Person or (iii) if clauses (i) and (ii) above are inapplicable, the rights
      of
      any licensee (including by means of the termination of such licensee’s rights
      under such license) under a trademark license to such licensee from the Borrower
      or any Subsidiary, if, at the time of and immediately after giving effect
      thereto, (a) no Default has occurred and is continuing or would arise after
      giving effect thereto, (b) all actions required to be taken with respect to
      such
      acquired or newly formed Subsidiary under Section 5.09 shall have been taken,
      (c) the aggregate consideration paid in respect of such acquisition shall (1)
      at
      any time the Leverage Ratio shall be greater than or equal to 3.00 to 1.00,
      not
      exceed an amount equal to $30,000,000 per year when aggregated together with
      all
      other Permitted Acquisitions in such year, (2) at any time the Leverage Ratio
      shall be less than 3.00 to 1.00 but greater than or equal to 2.50 to 1.00,
      not
      exceed an amount equal to $50,000,000 per year when aggregated together with
      all
      other Permitted Acquisitions in such year, (3) at any time the Leverage Ratio
      shall be less than 2.50 to 1.00, without limit, in each case, including the
      incurrence or assumption of any Indebtedness in connection therewith, and,
      for
      purposes of this clause (c), Leverage Ratio shall be determined as of the last
      day of the most recently ended fiscal quarter of the Borrower for which
      financial statements are available, (d) the Borrower and the Subsidiaries are
      in
      compliance, on a pro forma basis reasonably acceptable to the Administrative
      Agent after giving effect to such acquisition (including pro forma adjustments
      arising out of events which are directly attributable to the acquisition, are
      factually supportable and are expected to have a continuing impact, in each
      case
      as determined on a basis consistent with Article 11 of Regulation S-X of the
      Securities Act of 1933, as amended, as interpreted by the SEC), with the
      covenants contained in Section 6.13 recomputed as of the last day of the most
      recently
      ended fiscal quarter of the Borrower for which financial statements are
      available, as if such acquisition (and any related incurrence or repayment
      of
      Indebtedness, with any new Indebtedness being deemed to be amortized over the
      applicable testing period in accordance with its terms) had occurred on the
      first day of each relevant period for testing such compliance and, if the
      aggregate consideration paid in respect of such acquisition exceeds $5,000,000,
      the Borrower shall have delivered to the Administrative Agent a certificate
      of a
      Financial Officer of the Borrower, to such effect (and if the aggregate
      consideration paid in respect of such acquisition exceeds $20,000,000, such
      certificate and the supporting calculations shall have been reviewed by Ernst
      & Young LLP or other independent public accountants of recognized national
      standing), together with all relevant financial information requested by the
      Administrative Agent and (e) in the case of an acquisition or merger involving
      the Borrower or a Subsidiary, the Borrower or such Subsidiary is the surviving
      entity of such merger and/or consolidation.

     

    
      
        
        

      

      
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    “Permitted
      Encumbrances”
      means:

     

    (a)
      Liens
      imposed by law for taxes that are not yet due or are being contested in
      compliance with Section 5.04;

     

    (b)
      carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like
      Liens imposed by law, arising in the ordinary course of business and securing
      obligations that are not overdue by more than sixty (60) days or are being
      contested in compliance with Section 5.04;

     

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

     

    (d)
      deposits to secure the performance of bids, trade contracts, leases, statutory
      obligations, surety and appeal bonds, performance bonds and other obligations
      of
      a like nature, in each case in the ordinary course of business;

     

    (e)
      judgment liens in respect of judgments that do not constitute an Event of
      Default under clause (k) of Article VII; and

     

    (f)
      easements, zoning restrictions, rights-of-way and similar encumbrances on real
      property imposed by law or arising in the ordinary course of business that
      do
      not secure any monetary obligations and do not materially detract from the
      value
      of the affected property or interfere with the ordinary conduct of business
      of
      the Borrower or any Subsidiary;

     

    provided
      that the
      term “Permitted Encumbrances” shall not include any Lien securing
      Indebtedness.

     

    “Permitted
      Investments”
      means:

     

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

    
      
        
        

      

      
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    (b)
      investments in commercial paper maturing within 270 days from the date of
      acquisition thereof and having, at such date of acquisition, the highest credit
      rating obtainable from S&P or from Moody’s;

     

    (c)
      investments in certificates of deposit, banker’s acceptances and time deposits
      maturing within 180 days from the date of acquisition thereof issued or
      guaranteed by or placed with, and money market deposit accounts issued or
      offered by, any domestic office of any commercial bank organized under the
      laws
      of the United States of America or any State thereof which has a combined
      capital and surplus and undivided profits of not less than
      $500,000,000;

     

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

     

    (e)
      money
      market funds that (i) comply with the criteria set forth in Securities and
      Exchange Commission Rule 2a-7 under the Investment Company Act of 1940, (ii)
      are
      rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio assets of at
      least $5,000,000,000.

     

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

     

    “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 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.

     

    “Prime
      Rate”
means
      the rate of interest per annum publicly announced from time to time by JPMorgan
      Chase Bank, N.A. as its prime rate in effect at its principal office in New
      York
      City; each change in the Prime Rate shall be effective from and including the
      date such change is publicly announced as being effective.

     

    “Register”
has
      the
      meaning set forth in Section 9.04.

     

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

     

    “Required
      Lenders”
means,
      at any time, Lenders having Revolving Credit Exposures and unused Commitments
      representing more than 50% of the sum of the total Revolving Credit Exposures
      and unused Commitments at such time.

     

    
      
         

        
        

      

      
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    “Restricted
      Payment”
means
      any dividend or other distribution (whether in cash, securities or other
      property) with respect to any Equity Interests in the Borrower or any
      Subsidiary, or any payment (whether in cash, securities or other property),
      including any sinking fund or similar deposit, on account of the purchase,
      redemption, retirement, acquisition, cancellation or termination of any such
      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.

     

    “Revolving
      Credit Exposure”
means,
      with respect to any Lender at any time, the sum of the outstanding principal
      amount of such Lender’s Revolving Loans and its LC Exposure and Swingline
      Exposure at such time.

     

    “Revolving
      Loan”
means
      a
      Loan made pursuant to Section 2.03.

     

    “S&P”
means
      Standard & Poor’s.

     

    “Statutory
      Reserve Rate”
means,
      with respect to any currency, a fraction (expressed as a decimal), the numerator
      of which is the number one and the denominator of which is the number one minus
      the aggregate of the maximum reserve, liquid asset, fees or similar requirements
      (including any marginal, special, emergency or supplemental reserves or other
      requirements) established by any central bank, monetary authority, the Board,
      the Financial Services Authority, the European Central Bank or other
      Governmental Authority for any category of deposits or liabilities customarily
      used to fund loans in such currency, expressed in the case of each such
      requirement as a decimal. Such reserve percentages shall, in the case of Dollar
      denominated Loans, include those imposed pursuant to Regulation D of the
      Board. Eurocurrency Loans shall be deemed to be subject to such reserve, liquid
      asset or similar requirements without benefit of or credit for proration,
      exemptions or offsets that may be available from time to time to any Lender
      under any applicable law, rule or regulation, including Regulation D. The
      Statutory Reserve Rate shall be adjusted automatically on and as of the
      effective date of any change in any reserve, liquid asset or similar
      requirement.

     

    “Subordinated
      Indebtedness”
of
      a
      Person means any Indebtedness of such Person the payment of which is
      subordinated to payment of the obligations of the Borrower and/or any Subsidiary
      in respect of any sum due to any Lender or the Administrative Agent hereunder
      or
      under any other Loan Document.

     

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

     

    
      
         

        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    “Subsidiary”
means
      any subsidiary of the Borrower.

     

    “Subsidiary
      Guarantor”
means
      each Domestic Subsidiary (other than an Excluded Subsidiary). The Subsidiary
      Guarantors on the Effective Date are identified as such in Schedule
      3.01
      hereto.

     

    “Subsidiary
      Guaranty”
means
      that certain Guaranty dated as of the Effective Date (including any and all
      supplements thereto) and executed by each Subsidiary Guarantor, as amended,
      restated, supplemented or otherwise modified from time to time. 

     

    “Swap
      Agreement”
means
      any agreement with respect to any swap, forward, future or derivative
      transaction or option or similar agreement involving, or settled by reference
      to, one or more rates, currencies, commodities, equity or debt instruments
      or
      securities, or economic, financial or pricing indices or measures of economic,
      financial or pricing risk or value or any similar transaction or any combination
      of these transactions; provided
      that no
      phantom stock or similar plan providing for payments only on account of services
      provided by current or former directors, officers, employees or consultants
      of
      the Borrower or the Subsidiaries shall be a Swap Agreement.

     

    “Swingline
      Exposure”
means,
      at any time, the aggregate principal amount of all Swingline Loans outstanding
      at such time. The Swingline Exposure of any Lender at any time shall be its
      Applicable Percentage of the total Swingline Exposure at such time.

     

    “Swingline
      Lender”
means
      JPMorgan Chase Bank, N.A., in its capacity as lender of Swingline Loans
      hereunder.

     

    “Swingline
      Loan”
means
      a
      Loan made pursuant to Section 2.05.

     

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

     

    “Transactions”
means
      the execution, delivery and performance by the Borrower and the relevant
      Subsidiaries of this Agreement and the other Loan Documents, the borrowing
      of
      Loans, the use of the proceeds thereof and the issuance of Letters of Credit
      hereunder.

     

    “Type”,
      when
      used in reference to any Loan or Borrowing, refers to whether the rate of
      interest on such Loan, or on the Loans comprising such Borrowing, is determined
      by reference to the Adjusted LIBO Rate or the Alternate Base Rate.

     

    “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.

     

    SECTION
      1.02. Classification
      of Loans and Borrowings.
      For
      purposes of this Agreement, Loans may be classified and referred to by Class
      (e.g.,
      a
“Revolving Loan”) or by Type (e.g.,
      a
“Eurocurrency Loan”) or by Class and Type (e.g.,
      a
“Eurocurrency Revolving Loan”). Borrowings also may be classified and referred
      to by Class (e.g.,
      a
“Revolving Borrowing”)
      or by Type (e.g.,
      a
“Eurocurrency Borrowing”) or by Class and Type (e.g.,
      a
“Eurocurrency Revolving Borrowing”).

    
      
         

        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

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

     

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

     

     

    ARTICLE
      II

     

    The
      Credits

     

    SECTION
      2.01. Commitments.
      Subject
      to the terms and conditions set forth herein, each Lender agrees to make
      Revolving Loans to the Borrower in Agreed Currencies from time to time during
      the Availability Period in an aggregate principal amount that will not result
      in
      (a) such Lender’s Revolving Credit Exposure exceeding the Dollar Amount of such
      Lender’s Commitment, (b) the sum of the total Revolving Credit Exposures
      exceeding the total Commitments or (c) subject to Section 2.04, the Dollar
      Amount of the total Revolving Credit Exposure denominated in Foreign Currencies
      exceeding the Foreign Currency Sublimit. Within the foregoing limits and subject
      to the terms and conditions set forth herein, the Borrower may borrow, prepay
      and reborrow Revolving Loans.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    SECTION
      2.02. Loans
      and Borrowings.
      i)
      Each
      Revolving Loan shall be made as part of a Borrowing consisting of Revolving
      Loans made by the Lenders ratably in accordance with their respective
      Commitments. The failure of any Lender to make any Loan required to be made
      by
      it shall not relieve any other Lender of its obligations hereunder; provided
      that the
      Commitments of the Lenders are several and no Lender shall be responsible for
      any other Lender’s failure to make Loans as required.

     

    (b)
      Subject to Section 2.14, each Revolving Borrowing shall be comprised entirely
      of
      ABR Loans or Eurocurrency Loans as the Borrower may request in accordance
      herewith; provided that each ABR Loan shall only be made in Dollars. Each
      Swingline Loan shall be an ABR Loan. Each Lender at its option may make any
      Eurocurrency Loan by causing any domestic or foreign branch or Affiliate of
      such
      Lender to make such Loan; provided that any exercise of such option shall not
      affect the obligation of the Borrower to repay such Loan in accordance with
      the
      terms of this Agreement.

     

    (c)
      At
      the commencement of each Interest Period for any Eurocurrency Revolving
      Borrowing, such Borrowing shall be in an aggregate amount that is an integral
      multiple of $500,000 and not less than $3,000,000 (or the Approximate Equivalent
      Amount of each such amount if such Borrowing is denominated in a Foreign
      Currency). At the time that each ABR Revolving Borrowing is made, such Borrowing
      shall be in an aggregate amount that is an integral multiple of $500,000 and
      not
      less than $1,000,000; provided
      that an
      ABR Revolving Borrowing may be in an aggregate amount that is equal to the
      entire unused balance of the total Commitments or that is required to finance
      the reimbursement of an LC Disbursement as contemplated by Section 2.06(e).
      Each
      Swingline Loan shall be in an amount that is an integral multiple of $500,000
      and not less than $1,000,000. Borrowings of more than one Type and Class may
      be
      outstanding at the same time; provided
      that
      there shall not at any time be more than a total of fifteen (15) Eurocurrency
      Revolving Borrowings outstanding.

     

    (d)
      Notwithstanding any other provision of this Agreement, the Borrower shall not
      be
      entitled to request, or to elect to convert or continue, any Borrowing if the
      Interest Period requested with respect thereto would end after the Maturity
      Date.

     

    SECTION
      2.03. Requests
      for Revolving Borrowings.
      To
      request a Revolving Borrowing, the Borrower shall notify the Administrative
      Agent of such request by telephone (a) in the case of a Eurocurrency Borrowing,
      not later than 11:00 a.m., Chicago time, three (3) Business Days (in the case
      of
      a Eurocurrency Borrowing denominated in Dollars) or four (4) Business Days
      (in
      the case of a Eurocurrency Borrowing denominated in a Foreign Currency), in
      each
      case before the date of the proposed Borrowing or (b) in the case of an ABR
      Borrowing, not later than 10:00 a.m., Chicago time, on the date of the proposed
      Borrowing; provided
      that any
      such notice of an ABR Revolving Borrowing to finance the reimbursement of an
      LC
      Disbursement as contemplated by Section 2.06(e) may be given not later than
      10:00 a.m., Chicago time, on the date of the proposed Borrowing. Each such
      telephonic Borrowing Request shall be irrevocable and shall be confirmed
      promptly by hand delivery or facsimile to the Administrative Agent of a written
      Borrowing Request in a form approved by the Administrative Agent and signed
      by
      the Borrower. Each such telephonic and written Borrowing Request shall specify
      the following information in compliance with Section 2.02:

     

    
      
         

        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    (i)
      the
      aggregate amount of the requested Borrowing;

     

    (ii)
      the
      date of such Borrowing, which shall be a Business Day;

     

    (iii)
      whether such Borrowing is to be an ABR Borrowing or a Eurocurrency
      Borrowing;

     

    (iv)
      in
      the case of a Eurocurrency Borrowing, the Agreed Currency and the initial
      Interest Period to be applicable thereto, which shall be a period contemplated
      by the definition of the term “Interest Period”; and

     

    (v)
      the
      location and number of the Borrower’s account to which funds are to be
      disbursed, which shall comply with the requirements of Section
      2.07.

     

    If
      no
      election as to the Type of Revolving Borrowing is specified, then the requested
      Revolving Borrowing shall be an ABR Borrowing. If no Interest Period is
      specified with respect to any requested Eurocurrency Revolving Borrowing, then
      the Borrower shall be deemed to have selected an Interest Period of one month’s
      duration. Promptly following receipt of a Borrowing Request in accordance with
      this Section, the Administrative Agent shall advise each Lender of the details
      thereof and of the amount of such Lender’s Loan to be made as part of the
      requested Borrowing.

     

    SECTION
      2.04. Determination
      of Dollar Amounts.
      The
      Administrative Agent will determine the Dollar Amount of:

     

    (a)
      each
      Eurocurrency Borrowing as of the date three Business Days prior to the date
      of
      such Borrowing or, if applicable, date of conversion/continuation of any
      Borrowing as a Eurocurrency Borrowing,

     

    (b)
      the
      LC Exposure as of the date of each request for the issuance, amendment, renewal
      or extension of any Letter of Credit, and

     

    (c)
      all
      outstanding Credit Events on and as of the last Business Day of each calendar
      month and, during the continuation of an Event of Default, on any other Business
      Day elected by the Administrative Agent in its discretion or upon instruction
      by
      the Required Lenders.

     

    Each
      day
      upon or as of which the Administrative Agent determines Dollar Amounts as
      described in the preceding clauses (a), (b) and (c) is herein described as
      a
“Computation Date” with respect to each Credit Event for which a Dollar Amount
      is determined on or as of such day.

     

    SECTION
      2.05. Swingline
      Loans.
      (a)
      Subject
      to the terms and conditions set forth herein, the Swingline Lender agrees to
      make Swingline Loans in Dollars to the Borrower from time to time during the
      Availability Period, in an aggregate principal amount at any time outstanding
      that will not result in (i) the aggregate principal amount of outstanding
      Swingline Loans exceeding $10,000,000 or (ii) the Dollar Amount of the total
      Revolving Credit Exposures exceeding the total Commitments; provided
      that the
      Swingline Lender shall not be required to make a Swingline Loan to refinance
      an
      outstanding Swingline Loan. Within the foregoing limits and
      subject to the terms and conditions set forth herein, the Borrower may borrow,
      prepay and reborrow Swingline Loans.

    
      
         

        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    (b)
      To
      request a Swingline Loan, the Borrower shall notify the Administrative Agent
      of
      such request by telephone (confirmed by facsimile), not later than 12:00 noon,
      Chicago time, on the day of a proposed Swingline Loan. Each such notice shall
      be
      irrevocable and shall specify the requested date (which shall be a Business
      Day)
      and amount of the requested Swingline Loan. The Administrative Agent will
      promptly advise the Swingline Lender of any such notice received from the
      Borrower. The Swingline Lender shall make each Swingline Loan available to
      the
      Borrower by means of a credit to the general deposit account of the Borrower
      with the Swingline Lender (or, in the case of a Swingline Loan made to finance
      the reimbursement of an LC Disbursement as provided in Section 2.06(e), by
      remittance to the relevant Issuing Bank) by 3:00 p.m., Chicago time, on the
      requested date of such Swingline Loan.

     

    (c)
      The
      Swingline Lender may by written notice given to the Administrative Agent not
      later than 10:00 a.m., Chicago time, on any Business Day require the Lenders
      to
      acquire participations on such Business Day in all or a portion of the Swingline
      Loans outstanding. Such notice shall specify the aggregate amount of Swingline
      Loans in which Lenders will participate. Promptly upon receipt of such notice,
      the Administrative Agent will give notice thereof to each Lender, specifying
      in
      such notice such Lender’s Applicable Percentage of such Swingline Loan or Loans.
      Each Lender hereby absolutely and unconditionally agrees, upon receipt of notice
      as provided above, to pay to the Administrative Agent, for the account of the
      Swingline Lender, such Lender’s Applicable Percentage of such Swingline Loan or
      Loans. Each Lender acknowledges and agrees that its obligation to acquire
      participations in Swingline Loans pursuant to this paragraph is absolute and
      unconditional and shall not be affected by any circumstance whatsoever,
      including the occurrence and continuance of a Default or reduction or
      termination of the Commitments, and that each such payment shall be made without
      any offset, abatement, withholding or reduction whatsoever. Each Lender shall
      comply with its obligation under this paragraph by wire transfer of immediately
      available funds, in the same manner as provided in Section 2.07 with respect
      to
      Loans made by such Lender (and Section 2.07 shall apply, mutatis mutandis,
      to the
      payment obligations of the Lenders), and the Administrative Agent shall promptly
      pay to the Swingline Lender the amounts so received by it from the Lenders.
      The
      Administrative Agent shall notify the Borrower of any participations in any
      Swingline Loan acquired pursuant to this paragraph, and thereafter payments
      in
      respect of such Swingline Loan shall be made to the Administrative Agent and
      not
      to the Swingline Lender. Any amounts received by the Swingline Lender from
      the
      Borrower (or other party on behalf of the Borrower) in respect of a Swingline
      Loan after receipt by the Swingline Lender of the proceeds of a sale of
      participations therein shall be promptly remitted to the Administrative Agent;
      any such amounts received by the Administrative Agent shall be promptly remitted
      by the Administrative Agent to the Lenders that shall have made their payments
      pursuant to this paragraph and to the Swingline Lender, as their interests
      may
      appear; provided that any such payment so remitted shall be repaid to the
      Swingline Lender or to the Administrative Agent, as applicable, if and to the
      extent such payment is required to be refunded to the Borrower for any reason.
      The purchase of participations in a Swingline Loan pursuant to this paragraph
      shall not relieve the Borrower of any default in the payment
      thereof.

     

    
      
        
        

      

      
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    SECTION
      2.06. Letters
      of Credit.
      (a) General.
      Subject
      to the terms and conditions set forth herein, the Borrower may request the
      issuance of Letters of Credit denominated in Agreed Currencies for its own
      account and for the account of any of its Subsidiaries, in a form reasonably
      acceptable to the Administrative Agent and the relevant Issuing Bank, at any
      time and from time to time during the Availability Period. In the event of
      any
      inconsistency between the terms and conditions of this Agreement and the terms
      and conditions of any form of letter of credit application or other agreement
      submitted by the Borrower to, or entered into by the Borrower with, the relevant
      Issuing Bank relating to any Letter of Credit, the terms and conditions of
      this
      Agreement shall control; provided, however, if the relevant Issuing Bank is
      requested to issue Letters of Credit with respect to a jurisdiction such Issuing
      Bank deems, in its reasonable judgment, may at any time subject it to a New
      Money Credit Event or a Country Risk Event, the Borrower shall, at the request
      of such Issuing Bank, guaranty and indemnify such Issuing Bank against any
      and
      all costs, liabilities and losses resulting from such New Money Credit Event
      or
      Country Risk Event, in each case in a form and substance reasonably satisfactory
      to such Issuing Bank. The letters of credit identified on Schedule
      2.06
      shall be
      deemed to be “Letters of Credit” issued on the Effective Date for all purposes
      of the Loan Documents.

     

    (b)
      Notice
      of Issuance, Amendment, Renewal, Extension; Certain Conditions.
      To
      request the issuance of a Letter of Credit (or the amendment, renewal or
      extension of an outstanding Letter of Credit), the Borrower shall hand deliver
      or transmit by facsimile (or transmit by electronic communication, if
      arrangements for doing so have been approved by the relevant Issuing Bank)
      to an
      Issuing Bank and the Administrative Agent (reasonably in advance of the
      requested date of issuance, amendment, renewal or extension) a notice requesting
      the issuance of a Letter of Credit, or identifying the Letter of Credit to
      be
      amended, renewed or extended, and specifying the date of issuance, amendment,
      renewal or extension (which shall be a Business Day), the date on which such
      Letter of Credit is to expire (which shall comply with paragraph (c) of this
      Section), the amount of such Letter of Credit, the Agreed Currency applicable
      thereto, the name and address of the beneficiary thereof and such other
      information as shall be necessary to prepare, amend, renew or extend such Letter
      of Credit. If requested by such Issuing Bank, the Borrower also shall submit
      a
      letter of credit application on such Issuing Bank’s standard form in connection
      with any request for a Letter of Credit. A Letter of Credit shall be issued,
      amended, renewed or extended only if (and upon issuance, amendment, renewal
      or
      extension of each Letter of Credit the Borrower shall be deemed to represent
      and
      warrant that), after giving effect to such issuance, amendment, renewal or
      extension (i) the LC Exposure shall not exceed $50,000,000, (ii) the sum of
      the
      total Revolving Credit Exposures shall not exceed the total Commitments and
      (iii) subject to Section 2.04, the Dollar Amount of the total Revolving Credit
      Exposure denominated in Foreign Currencies shall not exceed the Foreign Currency
      Sublimit.

     

    (c)
      Expiration
      Date.
      Each
      Letter of Credit shall expire at or prior to the close of business on the
      earlier of (i) the date one year after the date of the issuance of such Letter
      of Credit (or, in the case of any renewal or extension thereof, one year after
      such renewal or extension) and (ii) the date that is five (5) Business Days
      prior to the Maturity Date.

     

    (d)
      Participations.
      By the
      issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing
      the amount thereof) and without any further action on the part of any
Issuing
      Bank or the Lenders, each Issuing Bank hereby grants to each Lender, and each
      Lender hereby acquires from each Issuing Bank, a participation in such Letter
      of
      Credit equal to such Lender’s Applicable Percentage of the aggregate amount
      available to be drawn under such Letter of Credit. In consideration and in
      furtherance of the foregoing, each Lender hereby absolutely and unconditionally
      agrees to pay to the Administrative Agent, for the account of the relevant
      Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement made
      by such Issuing Bank and not reimbursed by the Borrower on the date due as
      provided in paragraph (e) of this Section, or of any reimbursement payment
      required to be refunded to the Borrower for any reason. Each Lender acknowledges
      and agrees that its obligation to acquire participations pursuant to this
      paragraph in respect of Letters of Credit is absolute and unconditional and
      shall not be affected by any circumstance whatsoever, including any amendment,
      renewal or extension of any Letter of Credit or the occurrence and continuance
      of a Default or reduction or termination of the Commitments, and that each
      such
      payment shall be made without any offset, abatement, withholding or reduction
      whatsoever.

    
      
         

        
        

      

      
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    (e)
      Reimbursement.
      If any
      Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit,
      the Borrower shall reimburse such LC Disbursement by paying to the
      Administrative Agent in Dollars the Dollar Amount equal to such LC Disbursement
      calculated as of the date the applicable Issuing Bank made such LC Disbursement
      (or if such Issuing Bank shall so elect in its sole discretion by notice to
      the
      Borrower, in such other Agreed Currency which was paid by such Issuing Bank
      pursuant to such LC Disbursement in an amount equal to such LC Disbursement)
      not
      later than 12:00 noon, Local Time, on the date that such LC Disbursement is
      made, if the Borrower shall have received notice of such LC Disbursement prior
      to 10:00 a.m., Local Time, on such date, or, if such notice has not been
      received by the Borrower prior to such time on such date, then not later than
      12:00 noon, Local Time, on (i) the Business Day that the Borrower receives
      such
      notice, if such notice is received prior to 10:00 a.m., Local Time, on the
      day
      of receipt, or (ii) the Business Day immediately following the day that the
      Borrower receives such notice, if such notice is not received prior to such
      time
      on the day of receipt; provided
      that the
      Borrower may, subject to the conditions to borrowing set forth herein, request
      in accordance with Section 2.03 or 2.05 that such payment be financed with
      an
      ABR Revolving Borrowing or Swingline Loan in an equivalent Dollar Amount of
      such
      LC Disbursement and, to the extent so financed, the Borrower’s obligation to
      make such payment shall be discharged and replaced by the resulting ABR
      Revolving Borrowing or Swingline Loan. If the Borrower fails to make such
      payment when due, the Administrative Agent shall notify each Lender of the
      applicable LC Disbursement, the payment then due from the Borrower in respect
      thereof and such Lender’s Applicable Percentage thereof. Promptly following
      receipt of such notice, each Lender shall pay to the Administrative Agent its
      Applicable Percentage of the payment then due from the Borrower, in the same
      manner as provided in Section 2.07 with respect to Loans made by such Lender
      (and Section 2.07 shall apply, mutatis mutandis,
      to the
      payment obligations of the Lenders), and the Administrative Agent shall promptly
      pay to such Issuing Bank the amounts so received by it from the Lenders.
      Promptly following receipt by the Administrative Agent of any payment from
      the
      Borrower pursuant to this paragraph, the Administrative Agent shall distribute
      such payment to such Issuing Bank or, to the extent that Lenders have made
      payments pursuant to this paragraph to reimburse such Issuing Bank, then to
      such
      Lenders and such Issuing Bank as their interests may appear. Any payment made
      by
      a Lender pursuant to this paragraph to reimburse an Issuing Bank for any LC
      Disbursement (other than the funding of ABR Revolving Loans or a Swingline
      Loan
      as contemplated above) shall not constitute
      a Loan and shall not relieve the Borrower of its obligation to reimburse such
      LC
      Disbursement. If the Borrower’s reimbursement of, or obligation to reimburse,
      any amounts in any Foreign Currency would subject the Administrative Agent,
      any
      Issuing Bank or any Lender to any stamp duty, ad valorem charge or similar
      tax
      that would not be payable if such reimbursement were made or required to be
      made
      in Dollars, the Borrower shall, at its option, either (x) pay the amount of
      any such tax requested by the Administrative Agent, the relevant Issuing Bank
      or
      the relevant Lender or (y) reimburse each LC Disbursement made in such Foreign
      Currency in Dollars, in an amount equal to the Equivalent Amount, calculated
      using the applicable exchange rates, on the date such LC Disbursement is made,
      of such LC Disbursement.

    
      
         

        
        

      

      
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    (f)
      Obligations
      Absolute.
      The
      Borrower’s obligation to reimburse LC Disbursements as provided in paragraph (e)
      of this Section shall be absolute, unconditional and irrevocable, and shall
      be
      performed strictly in accordance with the terms of this Agreement under any
      and
      all circumstances whatsoever and irrespective of (i) any lack of validity or
      enforceability of any Letter of Credit or this Agreement, or any term or
      provision therein, (ii) any draft or other document presented under a Letter
      of
      Credit proving to be forged, fraudulent or invalid in any respect or any
      statement therein being untrue or inaccurate in any respect, (iii) payment
      by an
      Issuing Bank under a Letter of Credit against presentation of a draft or other
      document that does not comply with the terms of such Letter of Credit, or (iv)
      any other event or circumstance whatsoever, whether or not similar to any of
      the
      foregoing, that might, but for the provisions of this Section, constitute a
      legal or equitable discharge of, or provide a right of setoff against, the
      Borrower’s obligations hereunder. Neither the Administrative Agent, the Lenders
      nor any Issuing Bank, nor any of their Related Parties, shall have any liability
      or responsibility by reason of or in connection with the issuance or transfer
      of
      any Letter of Credit or any payment or failure to make any payment thereunder
      (irrespective of any of the circumstances referred to in the preceding
      sentence), or any error, omission, interruption, loss or delay in transmission
      or delivery of any draft, notice or other communication under or relating to
      any
      Letter of Credit (including any document required to make a drawing thereunder),
      any error in interpretation of technical terms or any consequence arising from
      causes beyond the control of the relevant Issuing Bank; provided
      that the
      foregoing shall not be construed to excuse any Issuing Bank 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
      such Issuing Bank’s failure to exercise care when determining whether drafts and
      other documents presented under a Letter of Credit comply with the terms
      thereof. The parties hereto expressly agree that, in the absence of gross
      negligence or willful misconduct on the part of any Issuing Bank (as finally
      determined by a court of competent jurisdiction), such Issuing Bank shall be
      deemed to have exercised care in each such determination. In furtherance of
      the
      foregoing and without limiting the generality thereof, the parties agree that,
      with respect to documents presented which appear on their face to be in
      substantial compliance with the terms of a Letter of Credit, each Issuing Bank
      may, in its sole discretion, either accept and make payment upon such documents
      without responsibility for further investigation, regardless of any notice
      or
      information to the contrary, or refuse to accept and make payment upon such
      documents if such documents are not in strict compliance with the terms of
      such
      Letter of Credit.

     

    (g)
      Disbursement
      Procedures.
      Each
      Issuing Bank shall, promptly following its receipt thereof, examine all
      documents purporting to represent a demand for payment under a Letter
      of
      Credit. Such Issuing Bank shall promptly notify the Administrative Agent and
      the
      Borrower by telephone (confirmed by facsimile) of such demand for payment and
      whether such Issuing Bank has made or will make an LC Disbursement thereunder;
      provided
      that any
      failure to give or delay in giving such notice shall not relieve the Borrower
      of
      its obligation to reimburse such Issuing Bank and the Lenders with respect
      to
      any such LC Disbursement.

    
      
         

        
        

      

      
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    (h)
      Interim
      Interest.
      If any
      Issuing Bank shall make any LC Disbursement, then, unless the Borrower shall
      reimburse such LC Disbursement in full on the date such LC Disbursement is
      made,
      the unpaid amount thereof shall bear interest, for each day from and including
      the date such LC Disbursement is made to but excluding the date that the
      Borrower reimburses such LC Disbursement, at the rate per annum then applicable
      to ABR Revolving Loans (or in the case such LC Disbursement is denominated
      in a
      Foreign Currency, at the Overnight Foreign Currency Rate for such Agreed
      Currency plus the then effective Applicable Rate with respect to Eurocurrency
      Revolving Loans); provided
      that, if
      the Borrower fails to reimburse such LC Disbursement when due pursuant to
      paragraph (e) of this Section, then Section 2.13(d) shall apply. Interest
      accrued pursuant to this paragraph shall be for the account of such Issuing
      Bank, except that interest accrued on and after the date of payment by any
      Lender pursuant to paragraph (e) of this Section to reimburse such Issuing
      Bank
      shall be for the account of such Lender to the extent of such
      payment.

     

    (i)
      Replacement
      of Issuing Bank.
      Any
      Issuing Bank may be replaced at any time by written agreement among the
      Borrower, the Administrative Agent, the replaced Issuing Bank and the successor
      Issuing Bank. The Administrative Agent shall notify the Lenders of any such
      replacement of an Issuing Bank. At the time any such replacement shall become
      effective, the Borrower shall pay all unpaid fees accrued for the account of
      the
      replaced Issuing Bank pursuant to Section 2.12(b). From and after the effective
      date of any such replacement, (i) the successor Issuing Bank shall have all
      the
      rights and obligations of an Issuing Bank under this Agreement with respect
      to
      Letters of Credit to be issued thereafter and (ii) references herein to the
      term
“Issuing Bank” shall be deemed to refer to such successor or to any previous
      Issuing Bank, or to such successor and all previous Issuing Banks, as the
      context shall require. After the replacement of an Issuing Bank hereunder,
      the
      replaced Issuing Bank shall remain a party hereto and shall continue to have
      all
      the rights and obligations of an Issuing Bank under this Agreement with respect
      to Letters of Credit issued by it prior to such replacement, but shall not
      be
      required to issue additional Letters of Credit.

     

    (j)
      Cash
      Collateralization.
      If any
      Event of Default shall occur and be continuing, on the Business Day that the
      Borrower receives notice from the Administrative Agent or the Required Lenders
      (or, if the maturity of the Loans has been accelerated, Lenders with LC Exposure
      representing greater than 50% of the total LC Exposure) demanding the deposit
      of
      cash collateral pursuant to this paragraph, the Borrower shall deposit in an
      account with the Administrative Agent, in the name of the Administrative Agent
      and for the benefit of the Lenders (the “LC
      Collateral Account”),
      an
      amount in cash equal to the Dollar Amount of the LC Exposure as of such date
      plus any accrued and unpaid interest thereon; provided
      that (i)
      the portions of such amount attributable to undrawn Foreign Currency Letters
      of
      Credit or LC Disbursements in a Foreign Currency that the Borrower is not late
      in reimbursing shall be deposited in the applicable Foreign Currencies in the
      actual amounts of such undrawn Letters of Credit and LC Disbursements and (ii)
      the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become
      immediately due and
      payable, without demand or other notice of any kind, upon the occurrence of
      any
      Event of 

    
      
         

        
        

      

      
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    Default
      with respect to the Borrower described in clause (h) or (i) of Article VII.
      For
      the purposes of this paragraph, the Foreign Currency LC Exposure shall be
      calculated using the applicable exchange rates of the Administrative Agent
      on
      the date notice demanding cash collateralization is delivered to the Borrower.
      The Borrower also shall deposit cash collateral pursuant to this paragraph
      as
      and to the extent required by Section 2.11(b). Such deposit shall be held by
      the
      Administrative Agent as collateral for the payment and performance of the
      obligations of the Borrower under this Agreement. The Administrative Agent
      shall
      have exclusive dominion and control, including the exclusive right of
      withdrawal, over such account and the Borrower hereby grants the Administrative
      Agent a security interest in the LC Collateral Account. Other than any interest
      earned on the investment of such deposits, which investments shall be made,
      upon
      the Borrower’s request, in Permitted Investments at the discretion of the
      Administrative Agent and at the Borrower’s risk and expense, such deposits shall
      not bear interest. Interest or profits, if any, on such investments shall
      accumulate in such account. Moneys in such account shall be applied by the
      Administrative Agent to reimburse the relevant Issuing Bank for LC Disbursements
      for which it has not been reimbursed and, to the extent not so applied, shall
      be
      held for the satisfaction of the reimbursement obligations of the Borrower
      for
      the LC Exposure at such time or, if the maturity of the Loans has been
      accelerated (but subject to the consent of Lenders with LC Exposure representing
      greater than 50% of the total LC Exposure), be applied to satisfy other
      obligations of the Borrower under this Agreement. If the Borrower is required
      to
      provide an amount of cash collateral hereunder as a result of the occurrence
      of
      an Event of Default, such amount (to the extent not applied as aforesaid) shall
      be returned to the Borrower within three (3) Business Days after all Events
      of
      Default have been cured or waived.

     

    (k)
      Conversion.
      In the
      event that the Loans become immediately due and payable on any date pursuant
      to
      Article VII, all amounts (i) that the Borrower is at the time or thereafter
      becomes required to reimburse or otherwise pay to the Administrative Agent
      in
      respect of LC Disbursements made under any Foreign Currency Letter of Credit
      (other than amounts in respect of which the Borrower has deposited cash
      collateral pursuant to paragraph (j) above, if such cash collateral was
      deposited in the applicable Foreign Currency to the extent so deposited or
      applied), (ii) that the Lenders are at the time or thereafter become required
      to
      pay to the Administrative Agent and the Administrative Agent is at the time
      or
      thereafter becomes required to distribute to an Issuing Bank pursuant to
      paragraph (e) of this Section in respect of unreimbursed LC Disbursements made
      under any Foreign Currency Letter of Credit and (iii) of each Lender’s
      participation in any Foreign Currency Letter of Credit under which an LC
      Disbursement has been made shall, automatically and with no further action
      required, be converted into the Dollar Amount, calculated using the
      Administrative Agent’s currency exchange rates on such date (or in the case of
      any LC Disbursement made after such date, on the date such LC Disbursement
      is
      made), of such amounts. On and after such conversion, all amounts accruing
      and
      owed to the Administrative Agent, any Issuing Bank or any Lender in respect
      of
      the obligations described in this paragraph shall accrue and be payable in
      Dollars at the rates otherwise applicable hereunder.

     

    SECTION
      2.07. Funding
      of Borrowings.
      (a)
      Each
      Lender shall make each Loan to be made by it hereunder on the proposed date
      thereof by wire transfer of immediately available
      funds (i) in the case of Loans denominated in Dollars, by 12:00 noon, Chicago
      time, to the account of the Administrative Agent most recently designated by
      it
      for such purpose by notice to the Lenders and (ii) in the case of each Loan
      denominated in a Foreign Currency, by 12:00 noon, local time, in the city of
      the
      Administrative Agent’s Eurocurrency Payment Office for such currency and at such
      Eurocurrency Payment Office for such currency; provided
      that
      Swingline Loans shall be made as provided in Section 2.05. The Administrative
      Agent will make such Loans available to the Borrower by promptly crediting
      the
      amounts so received, in like funds, to an account of the Borrower maintained
      with the Administrative Agent in New York City and designated by the Borrower
      in
      the applicable Borrowing Request; provided
      that ABR
      Revolving Loans made to finance the reimbursement of an LC Disbursement as
      provided in Section 2.06(e) shall be remitted by the Administrative Agent to
      the
      relevant Issuing Bank.

    
      
         

        
        

      

      
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    (b)
      Unless the Administrative Agent shall have received notice from a Lender prior
      to the proposed date of any 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 paragraph (a) of this Section 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 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 (i) in the
      case of such Lender, the greater of the Federal Funds Effective Rate and a
      rate
      determined by the Administrative Agent in accordance with banking industry
      rules
      on interbank compensation or (ii) in the case of the Borrower, the interest
      rate
      applicable to ABR Loans. If such Lender pays such amount to the Administrative
      Agent, then such amount shall constitute such Lender’s Loan included in such
      Borrowing.

     

    SECTION
      2.08. Interest
      Elections.
      (a)
Each
      Revolving Borrowing initially shall be of the Type specified in the applicable
      Borrowing Request and, in the case of a Eurocurrency Revolving Borrowing, shall
      have an initial Interest Period as specified in such Borrowing Request.
      Thereafter, the Borrower may elect to convert such Borrowing to a different
      Type
      or to continue such Borrowing and, in the case of a Eurocurrency Revolving
      Borrowing, may elect Interest Periods therefor, all as provided in this Section.
      The Borrower may elect different options with respect to different portions
      of
      the affected Borrowing, in which case each such portion shall be allocated
      ratably among the Lenders holding the Loans comprising such Borrowing, and
      the
      Loans comprising each such portion shall be considered a separate Borrowing.
      This Section shall not apply to Swingline Borrowings, which may not be converted
      or continued.

     

    (b)
      To
      make an election pursuant to this Section, the Borrower shall notify the
      Administrative Agent of such election by telephone by the time that a Borrowing
      Request would be required under Section 2.03 if the Borrower were requesting
      a
      Revolving Borrowing of the Type resulting from such election to be made on
      the
      effective date of such election. Each such telephonic Interest Election Request
      shall be irrevocable and shall be confirmed promptly by hand
      delivery or facsimile to the Administrative Agent of a written Interest Election
      Request in a form approved by the Administrative Agent and signed by the
      Borrower.

    
      
         

        
        

      

      
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    (c)
      Each
      telephonic and written Interest Election Request shall specify the following
      information in compliance with Section 2.02:

     

    (i)
      the
      Borrowing to which such Interest Election Request applies and, if different
      options are being elected with respect to different portions thereof, the
      portions thereof to be allocated to each resulting Borrowing (in which case
      the
      information to be specified pursuant to clauses (iii) and (iv) below shall
      be
      specified for each resulting Borrowing);

     

    (ii)
      the
      effective date of the election made pursuant to such Interest Election Request,
      which shall be a Business Day;

     

    (iii)
      whether the resulting Borrowing is to be an ABR Borrowing or a Eurocurrency
      Borrowing; and

     

    (iv)
      if
      the resulting Borrowing is a Eurocurrency Borrowing, the Interest Period to
      be
      applicable thereto after giving effect to such election, which shall be a period
      contemplated by the definition of the term “Interest Period”.

     

    If
      any
      such Interest Election Request requests a Eurocurrency Borrowing but does not
      specify an Interest Period, then the Borrower shall be deemed to have selected
      an Interest Period of one month’s duration.

     

    (d)
      Promptly following receipt of an Interest Election Request, the Administrative
      Agent shall advise each Lender of the details thereof and of such Lender’s
      portion of each resulting Borrowing.

     

    (e)
      If
      the Borrower fails to deliver a timely Interest Election Request with respect
      to
      a Eurocurrency Revolving Borrowing prior to the end of the Interest Period
      applicable thereto, then, unless such Borrowing is repaid as provided herein,
      at
      the end of such Interest Period (i) in the case of a Borrowing denominated
      in
      Dollars, such Borrowing shall be converted to an ABR Borrowing and (ii) in
      the
      case of a Borrowing denominated in a Foreign Currency, such Borrowing shall
      automatically continue as a Eurocurrency Borrowing in the same Agreed Currency
      with an Interest Period of one month unless (x) such Eurocurrency Borrowing
      is
      or was repaid in accordance with Section 2.7 or (y) the Borrower shall have
      given the Administrative Agent an Interest Election Request requesting that,
      at
      the end of such Interest Period, such Eurocurrency Borrowing continue as a
      Eurocurrency Borrowing for the same or another Interest Period. Notwithstanding
      any contrary provision hereof, if an Event of Default has occurred and is
      continuing and the Administrative Agent, at the request of the Required Lenders,
      so notifies the Borrower, then, so long as an Event of Default is continuing
      (i)
      no outstanding Revolving Borrowing may be converted to or continued as a
      Eurocurrency Borrowing and (ii) unless repaid, each Eurocurrency Revolving
      Borrowing shall be converted to an ABR Borrowing at the end of the Interest
      Period applicable thereto.

     

    SECTION
      2.09. Termination
      and Reduction of Commitments.
      (a)
      Unless
      previously terminated, the Commitments shall terminate on the Maturity
      Date.

     

    
      
         

        
        

      

      
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    (b)
      The
      Borrower may at any time terminate, or from time to time reduce, the
      Commitments; provided
      that (i)
      each reduction of the Commitments shall be in an amount that is an integral
      multiple of $1,000,000 and not less than $5,000,000 and (ii) the Borrower shall
      not terminate or reduce the Commitments if, after giving effect to any
      concurrent prepayment of the Loans in accordance with Section 2.11, the sum
      of
      the Revolving Credit Exposures would exceed the total Commitments.

     

    (c)
      The
      Borrower shall notify the Administrative Agent of any election to terminate
      or
      reduce the Commitments under paragraph (b) of this Section at least three (3)
      Business Days prior to the effective date of such termination or reduction,
      specifying such election and the effective date thereof. Promptly following
      receipt of any notice, the Administrative Agent shall advise the Lenders of
      the
      contents thereof. Each notice delivered by the Borrower pursuant to this Section
      shall be irrevocable; provided
      that a
      notice of termination of the Commitments delivered by the Borrower may state
      that such notice is conditioned upon the effectiveness of other credit
      facilities, in which case such notice may be revoked by the Borrower (by notice
      to the Administrative Agent on or prior to the specified effective date) if
      such
      condition is not satisfied. Any termination or reduction of the Commitments
      shall be permanent. Each reduction of the Commitments shall be made ratably
      among the Lenders in accordance with their respective Commitments.

     

    SECTION
      2.10. Repayment
      of Loans; Evidence of Debt.
      (a)
      The
      Borrower hereby unconditionally promises to pay (i) to the Administrative Agent
      for the account of each Lender the then unpaid principal amount of each
      Revolving Loan on the Maturity Date and (ii) to the Swingline Lender the then
      unpaid principal amount of each Swingline Loan on the earlier of the Maturity
      Date and the first date after such Swingline Loan is made that is the 15th
      or
      last day of a calendar month and is at least two (2) Business Days after such
      Swingline Loan is made; provided
      that on
      each date that a Revolving Borrowing is made, the Borrower shall repay all
      Swingline Loans then outstanding.

     

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

     

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

     

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

     

    
      
        
        

      

      
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    (e)
      Any
      Lender may request that Loans made by it be evidenced by a promissory note.
      In
      such event, the Borrower shall prepare, execute and deliver to such Lender
      a
      promissory note payable to the order of such Lender (or, if requested by such
      Lender, to such Lender and its registered assigns) and in a form approved by
      the
      Administrative Agent. Thereafter, the Loans evidenced by such promissory note
      and interest thereon shall at all times (including after assignment pursuant
      to
      Section 9.04) be represented by one or more promissory notes in such form
      payable to the order of the payee named therein (or, if such promissory note
      is
      a registered note, to such payee and its registered assigns).

     

    SECTION
      2.11. Prepayment
      of Loans.   

     

    (a)
      Voluntary
      Prepayments.

     

    (i)
      The
      Borrower shall have the right at any time and from time to time to prepay any
      Borrowing in whole or in part, subject to prior notice in accordance with clause
      (ii) of this Section.

     

    (ii)
      The
      Borrower shall notify the Administrative Agent (and, in the case of prepayment
      of a Swingline Loan, the Swingline Lender) by telephone (confirmed by facsimile)
      of any prepayment hereunder (i) in the case of prepayment of a Eurocurrency
      Revolving Borrowing, not later than 11:00 a.m., Chicago time, at least one
      Business Day before the date of prepayment, (ii) in the case of prepayment
      of an
      ABR Revolving Borrowing, not later than 10:00 a.m., Chicago time, one Business
      Day before the date of prepayment or (iii) in the case of prepayment of a
      Swingline Loan, not later than 12:00 noon, Chicago time, on the date of
      prepayment. Each such notice shall be irrevocable and shall specify the
      prepayment date and the principal amount of each Borrowing or portion thereof
      to
      be prepaid; provided that, if a notice of prepayment is given in connection
      with
      a conditional notice of termination of the Commitments as contemplated by
      Section 2.09, then such notice of prepayment may be revoked if such notice
      of
      termination is revoked in accordance with Section 2.09. Promptly following
      receipt of any such notice relating to a Revolving Borrowing, the Administrative
      Agent shall advise the Lenders of the contents thereof. Each partial prepayment
      of any Revolving Borrowing shall be in an amount that would be permitted in
      the
      case of an advance of a Revolving Borrowing of the same Type as provided in
      Section 2.02. Each prepayment of a Revolving Borrowing shall be applied ratably
      to the Loans included in the prepaid Borrowing. Prepayments shall be accompanied
      by accrued interest to the extent required by Section 2.13.

     

    (b)
      Mandatory
      Prepayments.
      If at
      any time, (i) other than as a result of fluctuations in currency exchange rates,
      the sum of the aggregate principal Dollar Amount of all of the Revolving Credit
      Exposures (calculated, with respect to those Credit Events denominated in
      Foreign Currencies, as of the most recent Computation Date with respect to
      each
      such Credit Event) exceeds the Aggregate Commitment and (ii) solely as a result
      of fluctuations in currency exchange rates, the sum of the aggregate principal
      Dollar Amount of all of the Revolving Credit Exposures denominated in Foreign
      Currencies (as so calculated) exceeds 5% of the Foreign Currency Sublimit,
      the
      Borrower shall immediately repay Borrowings and, if no Borrowings are then
      outstanding, cash collateralize LC Disbursements in an account with the
      Administrative Agent
      pursuant to Section 2.05(j), in an aggregate principal amount sufficient to
      eliminate any such excess.

    
      
         

        
        

      

      
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    SECTION
      2.12. Fees.
      (a)
      The
      Borrower agrees to pay to the Administrative Agent for the account of each
      Lender a facility fee, which shall accrue at the Applicable Rate on the daily
      Dollar Amount of the Commitment of such Lender (whether used or unused) during
      the period from and including the Effective Date to but excluding the date
      on
      which such Commitment terminates; provided
      that, if
      such Lender continues to have any Revolving Credit Exposure after its Commitment
      terminates, then such facility fee shall continue to accrue on the daily Dollar
      Amount of such Lender’s Revolving Credit Exposure from and including the date on
      which its Commitment terminates to but excluding the date on which such Lender
      ceases to have any Revolving Credit Exposure. Accrued facility fees shall be
      payable in arrears on the last day of March, June, September and December of
      each year and on the date on which the Commitments terminate, commencing on
      the
      first such date to occur after the date hereof; provided
      that any
      facility fees accruing after the date on which the Commitments terminate shall
      be payable on demand. All facility fees shall be computed on the basis of a
      year
      of 360 days and shall be payable for the actual number of days elapsed
      (including the first day but excluding the last day).

     

    (b)
      The
      Borrower agrees to pay (i) to the Administrative Agent for the account of each
      Lender a participation fee with respect to its participations in Letters of
      Credit, which shall accrue at the same Applicable Rate used to determine the
      interest rate applicable to Eurocurrency Revolving Loans on the average daily
      Dollar Amount of such Lender’s LC Exposure (excluding any portion thereof
      attributable to unreimbursed LC Disbursements) during the period from and
      including the Effective Date to but excluding the later of the date on which
      such Lender’s Commitment terminates and the date on which such Lender ceases to
      have any LC Exposure and (ii) to each Issuing Bank a fronting fee, which shall
      accrue at a per annum rate agreed upon between the Borrower and the applicable
      Issuing Bank on the average daily Dollar Amount of the LC Exposure (excluding
      any portion thereof attributable to unreimbursed LC Disbursements) attributable
      to Letters of Credit issued by such Issuing Bank during the period from and
      including the Effective Date to but excluding the later of the date of
      termination of the Commitments and the date on which there ceases to be any
      LC
      Exposure, as well as such Issuing Bank’s standard fees and commissions
      (including without limitation standard commissions with respect to commercial
      Letters of Credit, payable at the time of invoice of such amounts) with respect
      to the issuance, amendment, cancellation, negotiation, transfer, presentment,
      renewal or extension of any Letter of Credit or processing of drawings
      thereunder. Unless otherwise specified above, participation fees and fronting
      fees accrued through and including the last day of March, June, September and
      December of each year shall be payable on the third Business Day following
      such
      last day, commencing on the first such date to occur after the Effective Date;
      provided
      that all
      such fees shall be payable on the date on which the Commitments terminate and
      any such fees accruing after the date on which the Commitments terminate shall
      be payable on demand. Any other fees payable to any Issuing Bank pursuant to
      this paragraph shall be payable within ten (10) days after demand. All
      participation fees and fronting fees shall be computed on the basis of a year
      of
      360 days and shall be payable for the actual number of days elapsed (including
      the first day but excluding the last day).

     

    
      
         

        
        

      

      
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    (c)
      The
      Borrower agrees to pay to the Administrative Agent, for its own account, fees
      payable in the amounts and at the times separately agreed upon between the
      Borrower and the Administrative Agent.

     

    (d)
      All
      fees payable hereunder shall be paid on the dates due, in immediately available
      funds, to the Administrative Agent (or to the relevant Issuing Bank, in the
      case
      of fees payable to it) for distribution, in the case of facility fees and
      participation fees, to the Lenders. Fees paid shall not be refundable under
      any
      circumstances.

     

    SECTION
      2.13. Interest.
      (a)
      The
      Loans comprising each ABR Borrowing (including each Swingline Loan) shall bear
      interest at the Alternate Base Rate.

     

    (b)
      The
      Loans comprising each Eurocurrency Borrowing shall bear interest at the Adjusted
      LIBO Rate for the Interest Period in effect for such Borrowing plus the
      Applicable Rate.

     

    (c)
      Notwithstanding the foregoing, if any principal of or interest on any Loan
      or
      any fee or other amount payable by the Borrower hereunder is not paid when
      due,
      whether at stated maturity, upon acceleration or otherwise, such overdue amount
      shall bear interest, after as well as before judgment, at a rate per annum
      equal
      to (i) in the case of overdue principal of any Loan, 2% plus the rate otherwise
      applicable to such Loan as provided in the preceding paragraphs of this Section
      or (ii) in the case of any other amount, 2% plus the rate applicable to ABR
      Loans as provided in paragraph (a) of this Section.

     

    (d)
      Accrued interest on each Loan shall be payable in arrears on each Interest
      Payment Date for such Loan and, in the case of Revolving Loans, upon termination
      of the Commitments; provided
      that (i)
      interest accrued pursuant to paragraph (c) of this Section shall be payable
      on
      demand, (ii) in the event of any repayment or prepayment of any Loan (other
      than
      a prepayment of an ABR Revolving Loan prior to the end of the Availability
      Period), accrued interest on the principal amount repaid or prepaid shall be
      payable on the date of such repayment or prepayment and (iii) in the event
      of
      any conversion of any Eurocurrency Revolving Loan prior to the end of the
      current Interest Period therefor, accrued interest on such Loan shall be payable
      on the effective date of such conversion.

     

    (e)
      All
      interest hereunder shall be computed on the basis of a year of 360 days, except
      that interest for (i) all Swingline Loans and (ii) any other Loan that is
      computed by reference to the Alternate Base Rate at times when the Alternate
      Base Rate is based on the Prime Rate, in each case, shall be computed on the
      basis of a year of 365 days (or 366 days in a leap year). The applicable
      Alternate Base Rate, Adjusted LIBO Rate or LIBO Rate shall be determined by
      the
      Administrative Agent, and such determination shall be conclusive absent manifest
      error.

     

    SECTION
      2.14. Alternate
      Rate of Interest.
      If
      prior to the commencement of any Interest Period for a Eurocurrency
      Borrowing:

     

    (a)
      the
      Administrative Agent determines (which determination shall be conclusive absent
      manifest error) that adequate and reasonable means do not exist for
      ascertaining
      the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest
      Period; or

    
      
         

        
        

      

      
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    (b)
      the
      Administrative Agent is advised by the Required Lenders that the Adjusted LIBO
      Rate or the LIBO Rate, as applicable, for such Interest Period will not
      adequately and fairly reflect the cost to such Lenders (or Lender) of making
      or
      maintaining their Loans (or its Loan) included in such Borrowing for such
      Interest Period;

     

    then
      the
      Administrative Agent shall give notice thereof to the Borrower and the Lenders
      by telephone or facsimile as promptly as practicable thereafter and, until
      the
      Administrative Agent notifies the Borrower and the Lenders that the
      circumstances giving rise to such notice no longer exist, (i) any Interest
      Election Request that requests the conversion of any Revolving Borrowing to,
      or
      continuation of any Revolving Borrowing as, a Eurocurrency Borrowing shall
      be
      ineffective and (ii) if any Borrowing Request requests a Eurocurrency Revolving
      Borrowing, such Borrowing shall be made as an ABR Borrowing; provided
      that if
      the circumstances giving rise to such notice affect only one Type of Borrowings,
      then the other Type of Borrowings shall be permitted.

     

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

     

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

     

    (ii)
      impose on any Lender or any Issuing Bank or the London interbank market any
      other condition affecting this Agreement or Eurocurrency 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 Loan or of maintaining its obligation
      to
      make any such Loan (including, without limitation, pursuant to any conversion
      of
      any Borrowing denominated in any other Agreed Currency) or to increase the
      cost
      to such Lender or such Issuing Bank of participating in, issuing or maintaining
      any Letter of Credit (including, without limitation, pursuant to any conversion
      of any Borrowing denominated in any other Agreed Currency) or to reduce the
      amount of any sum received or receivable by such Lender or such Issuing Bank
      hereunder, whether of principal, interest or otherwise (including, without
      limitation, pursuant to any conversion of any Borrowing denominated in any
      other
      Agreed Currency), then the Borrower will pay to such Lender or such Issuing
      Bank, as the case may be, such additional amount or amounts as will compensate
      such Lender or such Issuing Bank, as the case may be, for such additional costs
      incurred or reduction suffered.

     

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

    
      
        
        

      

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

     

    (d)
      Failure or delay on the part of any Lender or any Issuing Bank to demand
      compensation pursuant to this Section shall not constitute a waiver of such
      Lender’s or such Issuing Bank’s right to demand such compensation; provided
      that the
      Borrower shall not be required to compensate a Lender or an Issuing Bank
      pursuant to this Section for any increased costs or reductions incurred more
      than 180 days prior to the date that such Lender or such Issuing Bank, 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 such Issuing Bank’s
      intention to claim compensation therefor; provided further
      that, if
      the Change in Law giving rise to such increased costs or reductions is
      retroactive, then the 180-day period referred to above shall be extended to
      include the period of retroactive effect thereof.

     

    SECTION
      2.16. Break
      Funding Payments.
      In the
      event of (a) the payment of any principal of any Eurocurrency Loan other than
      on
      the last day of an Interest Period applicable thereto (including as a result
      of
      an Event of Default), (b) the conversion of any Eurocurrency Loan other than
      on
      the last day of the Interest Period applicable thereto, (c) the failure to
      borrow, convert, continue or prepay any Eurocurrency Loan on the date specified
      in any notice delivered pursuant hereto (regardless of whether such notice
      may
      be revoked under Section 2.11(b) and is revoked in accordance therewith) or
      (d)
      the assignment of any Eurocurrency Loan other than on the last day of the
      Interest Period applicable thereto as a result of a request by the Borrower
      pursuant to Section 2.19, then, in any such event, the Borrower shall compensate
      each Lender for the loss, cost and expense attributable to such event. Such
      loss, cost or expense to any Lender shall be deemed to include an amount
      determined by such Lender to be the excess, if any, of (i) the amount of
      interest which would have accrued on the principal amount of such Loan had
      such
      event not occurred, at the Adjusted LIBO Rate that would have been applicable
      to
      such Loan, for the period from the date of such event to the last day of the
      then current Interest Period therefor (or, in the case of a failure to borrow,
      convert or continue, for the period that would have been the Interest Period
      for
      such Loan), over (ii) the amount of interest which would accrue on such
      principal amount for such period at the interest rate which such Lender would
      bid were it to bid, at the commencement of such period, for deposits in the
      relevant currency of a comparable amount and period from other banks in the
      eurocurrency market. A certificate of any Lender setting forth any amount or
      amounts that such Lender is entitled to receive pursuant to this Section
      shall be delivered to the Borrower and shall be conclusive absent manifest
      error. The Borrower shall pay such Lender the amount shown as due on any such
      certificate within ten (10) days after receipt thereof.

    
      
         

        
        

      

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

     

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

     

    (c)
      The
      Borrower shall indemnify the Administrative Agent, each Lender and each Issuing
      Bank, within ten (10) days after written demand therefor, for the full amount
      of
      any Indemnified Taxes or Other Taxes paid by the Administrative Agent, such
      Lender or such Issuing Bank, as the case may be, on or with respect to any
      payment by or on account of any obligation of the Borrower hereunder (including
      Indemnified Taxes or Other Taxes imposed or asserted on or attributable to
      amounts payable under this Section) 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 an Issuing Bank,
      or by the Administrative Agent on its own behalf or on behalf of a Lender or
      an
      Issuing Bank, shall be conclusive absent manifest error.

     

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

     

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

     

     

    
      
         

        
        

      

      
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    (f)
      If
      the Administrative Agent or a Lender 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 the Borrower or with respect to which the Borrower has paid
      additional amounts pursuant to this Section
      2.17, 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 2.17 with respect to the Taxes or Other Taxes giving rise to such
      refund), net of all out-of-pocket expenses of the Administrative Agent or such
      Lender and without interest (other than any interest paid by the relevant
      Governmental Authority with respect to such refund); provided, that the
      Borrower, upon the request of the Administrative Agent or such Lender, agrees
      to
      repay the amount paid over to the Borrower (plus any penalties, interest or
      other charges imposed by the relevant Governmental Authority) to the
      Administrative Agent or such Lender in the event the Administrative Agent or
      such Lender is required to repay such refund to such Governmental Authority.
      This Section shall not be construed to require the Administrative Agent or
      any
      Lender to make available its tax returns (or any other information relating
      to
      its taxes which it deems confidential) to the Borrower or any other
      Person.

     

    SECTION
      2.18. Payments
      Generally; Pro Rata Treatment; Sharing of Set-offs. 

     

    (a)
      The
      Borrower shall make each payment required to be made by it hereunder (whether
      of
      principal, interest, fees or reimbursement of LC Disbursements, or of amounts
      payable under Section 2.15, 2.16 or 2.17, or otherwise) prior to (i) in the
      case
      of payments denominated in Dollars, 12:00 noon, Chicago time and (ii) in the
      case of payments denominated in a Foreign Currency, 12:00 noon, local time,
      in
      the city of the Administrative Agent’s Eurocurrency Payment Office for such
      currency, in each case on the date when due, in immediately available funds,
      without set-off or counterclaim. Any amounts received after such time on any
      date may, in the discretion of the Administrative Agent, be deemed to have
      been
      received on the next succeeding Business Day for purposes of calculating
      interest thereon. All such payments shall be made (i) in the same currency
      in
      which the applicable Credit Event was made (or where such currency has been
      converted to euro, in euro) and (ii) to the Administrative Agent at its offices
      at 131 South Dearborn Street, Chicago, Illinois 60603 or, in the case of a
      Borrowing denominated in a Foreign Currency, the Administrative Agent’s
      Eurocurrency Payment Office, except payments to be made directly to an Issuing
      Bank or Swingline Lender as expressly provided herein and except that payments
      pursuant to Sections 2.15, 2.16, 2.17 and 9.03 shall be made directly to the
      Persons entitled thereto. The Administrative Agent shall distribute any such
      payments denominated in the same currency received by it for the account of
      any
      other Person to the appropriate recipient promptly following receipt thereof.
      If
      any payment hereunder shall be due on a day that is not a Business Day, the
      date
      for payment shall be extended to the next succeeding Business Day, and, in
      the
      case of any payment accruing interest, interest thereon shall be payable for
      the
      period of such extension. Notwithstanding the foregoing provisions of this
      Section, if, after the making of any Credit Event in any Foreign Currency,
      currency control or exchange regulations are imposed in the country which issues
      such currency with the result that the type of currency in which the Credit
      Event was made (the “Original Currency”) no longer exists or the Borrower is not
      able to make payment to the Administrative Agent for the account of the Lenders
      in such Original Currency, then all payments to be made by the Borrower
      hereunder in such currency shall instead be made when due in Dollars in an
      amount equal to the Dollar Amount (as of the date of repayment) of such payment
      due, it being the intention of the parties hereto that the Borrower takes all
      risks of the imposition of any such currency control or exchange
      regulations.

     

    
      
        
        

      

      
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    (b)
      If at
      any time insufficient funds are received by and available to the Administrative
      Agent to pay fully all amounts of principal, unreimbursed LC Disbursements,
      interest and fees then due hereunder, such funds shall be applied (i) first,
      towards payment of interest and fees then due hereunder, ratably among the
      parties entitled thereto in accordance with the amounts of interest and fees
      then due to such parties, and (ii) second, towards payment of principal and
      unreimbursed LC Disbursements then due hereunder, ratably among the parties
      entitled thereto in accordance with the amounts of principal and unreimbursed
      LC
      Disbursements then due to such parties.

     

    (c)
      If
      any Lender shall, by exercising any right of set-off or counterclaim or
      otherwise, obtain payment in respect of any principal of or interest on any
      of
      its Revolving Loans or participations in LC Disbursements or Swingline Loans
      resulting in such Lender receiving payment of a greater proportion of the
      aggregate amount of its Revolving Loans and participations in LC Disbursements
      and Swingline Loans and accrued interest thereon than the proportion received
      by
      any other Lender, then the Lender receiving such greater proportion shall
      purchase (for cash at face value) participations in the Revolving Loans and
      participations in LC Disbursements and Swingline Loans of other Lenders to
      the
      extent necessary so that the benefit of all such payments shall be shared by
      the
      Lenders ratably in accordance with the aggregate amount of principal of and
      accrued interest on their respective Revolving Loans and participations in
      LC
      Disbursements and Swingline Loans; provided that (i) if any such participations
      are purchased and all or any portion of the payment giving rise thereto is
      recovered, such participations shall be rescinded and the purchase price
      restored to the extent of such recovery, without interest, and (ii) the
      provisions of this paragraph shall not be construed to apply to any payment
      made
      by the Borrower pursuant to and in accordance with the express terms of this
      Agreement or any payment obtained by a Lender as consideration for the
      assignment of or sale of a participation in any of its Loans or participations
      in LC Disbursements to any assignee or participant, other than to the Borrower
      or any Subsidiary or Affiliate thereof (as to which the provisions of this
      paragraph shall apply). The Borrower 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 the Borrower rights of set-off and counterclaim with respect to such
      participation as fully as if such Lender were a direct creditor of the Borrower
      in the amount of such participation.

     

    (d)
      Unless the Administrative Agent shall have received notice from the Borrower
      prior to the date on which any payment is due to the Administrative Agent for
      the account of the Lenders or the Issuing Banks 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 Issuing Banks, 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 each Issuing Bank, as the case may be,
      severally agrees to repay to the Administrative Agent forthwith on demand the
      amount so distributed to such Lender or Issuing Bank 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 greater of
      the
      Federal Funds Effective Rate and a rate determined by the Administrative Agent
      in accordance with banking industry rules on interbank
      compensation.

     

    
      
         

        
        

      

      
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    (e)
      If
      any Lender shall fail to make any payment required to be made by it pursuant
      to
      Section 2.05(c), 2.06(d) or (e), 2.07(b), 2.18(d) or 9.03(c), then the
      Administrative Agent may, in its discretion (notwithstanding any contrary
      provision hereof), apply any amounts thereafter received by the Administrative
      Agent for the account of such Lender to satisfy such Lender’s obligations under
      such Sections until all such unsatisfied obligations are fully
      paid.

     

    SECTION
      2.19. Mitigation
      Obligations; Replacement of Lenders.
      (a)
      If any
      Lender requests compensation under Section 2.15, or if the Borrower is required
      to pay any additional amount to any Lender or any Governmental Authority for
      the
      account of any Lender pursuant to Section 2.17, then such Lender shall use
      reasonable efforts to designate a different lending office for funding or
      booking its Loans hereunder or to assign its rights and obligations hereunder
      to
      another of its offices, branches or affiliates, if, in the judgment of such
      Lender, such designation or assignment (i) would eliminate or reduce amounts
      payable pursuant to Section 2.15 or 2.17, as the case may be, in the future
      and
      (ii) would not subject such Lender to any unreimbursed cost or expense and
      would
      not otherwise be disadvantageous to such Lender. The Borrower hereby agrees
      to
      pay all reasonable costs and expenses incurred by any Lender in connection
      with
      any such designation or assignment.

     

    (b)
      If
      any Lender requests compensation under Section 2.15, or if the Borrower is
      required to pay any additional amount to any Lender or any Governmental
      Authority for the account of any Lender pursuant to Section 2.17, or if any
      Lender defaults in its obligation to fund Loans hereunder, then the Borrower
      may, at its sole expense and effort, upon notice to such Lender and the
      Administrative Agent, require such Lender to assign and delegate, without
      recourse (in accordance with and subject to the restrictions contained in
      Section 9.04), all its interests, rights and obligations under this Agreement
      to
      an assignee that shall assume such obligations (which assignee may be another
      Lender, if a Lender accepts such assignment); provided
      that (i)
      the Borrower shall have received the prior written consent of the Administrative
      Agent, which consent shall not unreasonably be withheld, (ii) such Lender shall
      have received payment of an amount equal to the outstanding principal of its
      Loans and participations in LC Disbursements and Swingline Loans, accrued
      interest thereon, accrued fees and all other amounts payable to it hereunder,
      from the assignee (to the extent of such outstanding principal and accrued
      interest and fees) or the Borrower (in the case of all other amounts) and (iii)
      in the case of any such assignment resulting from a claim for compensation
      under
      Section 2.15 or payments required to be made pursuant to Section 2.17, such
      assignment will result in a reduction in such compensation or payments. A Lender
      shall not be required to make any such assignment and delegation if, prior
      thereto, as a result of a waiver by such Lender or otherwise, the circumstances
      entitling the Borrower to require such assignment and delegation cease to
      apply.

     

    SECTION
      2.20. Expansion
      Option.
      The
      Borrower may from time to time elect to increase the Revolving Commitments
      in a
      minimum amount of $5,000,000 so long as, after giving effect thereto, the
      aggregate amount of the Revolving Commitments does not exceed $125,000,000.
      Upon
      the Borrower’s request, such increase may be provided by one or more Lenders
      (each Lender so agreeing to an increase in its Revolving Commitment, an
“Increasing
      Lender”),
      or by
      one or more new banks, financial institutions or other entities (each such
      new
      bank, financial institution or other entity, an “Augmenting
      Lender”),
      selected by the Administrative Agent, in consultation with the Borrower, and
      willing to increase their 

     

    
      
         

        
        

      

      
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    existing
      Revolving Commitments, or extend Revolving Commitments, as the case may be,
      provided that (i) each Augmenting Lender, shall be subject to the approval
      of
      the Administrative Agent and the Issuing Banks and (ii) (x) in the case of
      an
      Increasing Lender, the Borrower and such Increasing Lender execute an agreement
      substantially in the form of Exhibit
      C
      hereto,
      and (y) in the case of an Augmenting Lender, the Borrower and such Augmenting
      Lender execute an agreement substantially in the form of Exhibit
      D
      hereto.
      Increases and new Revolving Commitments created pursuant to this clause shall
      become effective on the date agreed by the Borrower, the Administrative Agent
      and the relevant Increasing Lenders or Augmenting Lenders and the Administrative
      Agent shall notify each Revolving Lender thereof. Notwithstanding the foregoing,
      no increase in the Revolving Commitments (or in the Revolving Commitment of
      any
      Lender), shall become effective under this paragraph unless, (i) on the proposed
      date of the effectiveness of such increase, the conditions set forth in
      paragraphs (a) and (b) of Section 5.02 shall be satisfied or waived by the
      Required Lenders and the Administrative Agent shall have received a certificate
      to that effect dated such date and executed by a Responsible Officer of the
      Borrower and (ii) the Administrative Agent shall have received documents
      consistent with those delivered on the Effective Date as to the corporate power
      and authority of the Borrower to borrow hereunder after giving effect to such
      increase. On the effective date of any increase in the Revolving Commitments,
      (i) each relevant Increasing Lender and Augmenting Lender shall make available
      to the Administrative Agent such amounts in immediately available funds as
      the
      Administrative Agent shall determine, for the benefit of the other Revolving
      Lenders, as being required in order to cause, after giving effect to such
      increase and the use of such amounts to make payments to such other Revolving
      Lenders, each Revolving Lender’s portion of the outstanding Revolving Loans of
      all the Revolving Lenders to equal its Revolving Percentage of such outstanding
      Revolving Loans, and (ii) the Borrower shall be deemed to have repaid and
      reborrowed all outstanding Revolving Loans as of the date of any increase in
      the
      Revolving Commitments (with such reborrowing to consist of the Types of
      Revolving Loans, with related Interest Periods if applicable, specified in
      a
      notice delivered by the Borrower in accordance with the requirements of Section
      2.03). The deemed payments made pursuant to clause (ii) of the immediately
      preceding sentence shall be accompanied by payment of all accrued interest
      on
      the amount prepaid and, in respect of each Eurocurrency Loan, shall be subject
      to indemnification by the Borrower pursuant to the provisions of Section 2.18
      if
      the deemed payment occurs other than on the last day of the related Interest
      Periods.

     

    SECTION
      2.21. Market
      Disruption.
      Notwithstanding the satisfaction of all conditions referred to in Article II
      and
      Article IV with respect to any Credit Event to be effected in any Foreign
      Currency, if (i) there shall occur on or prior to the date of such Credit Event
      any change in national or international financial, political or economic
      conditions or currency exchange rates or exchange controls which would in the
      reasonable opinion of the Administrative Agent, the Issuing Bank (if such Credit
      Event is a Letter of Credit) or the Required Lenders make it impracticable
      for
      the Eurocurrency Borrowings or Letters of Credit comprising such Credit Event
      to
      be denominated in the Agreed Currency specified by the Borrower or (ii) an
      Equivalent Amount of such currency is not readily calculable, then the
      Administrative Agent shall forthwith give notice thereof to the Borrower, the
      Lenders and, if such Credit Event is a Letter of Credit, the applicable Issuing
      Bank, and such Credit Events shall not be denominated in such Agreed Currency
      but shall, except as otherwise set forth in Section 2.07, be made on the date
      of
      such Credit Event in Dollars, (a) if such Credit Event is a Borrowing, in an
      aggregate principal amount equal to the Dollar Amount of the
      aggregate

     

    
      
         

        
        

      

      
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    principal
      amount specified in the related Credit Event Request or Interest Election
      Request, as the case may be, as ABR Loans, unless the Borrower notifies the
      Administrative Agent at least one Business Day before such date that (i) it
      elects not to borrow on such date or (ii) it elects to borrow on such date
      in a
      different Agreed Currency, as the case may be, in which the denomination of
      such
      Loans would in the reasonable opinion of the Administrative Agent and the
      Required Lenders be practicable and in an aggregate principal amount equal
      to
      the Dollar Amount of the aggregate principal amount specified in the related
      Credit Event Request or Interest Election Request, as the case may be or (b)
      if
      such Credit Event is a Letter of Credit, in a face amount equal to the Dollar
      Amount of the face amount specified in the related request or application for
      such Letter of Credit, unless the Borrower notifies the Administrative Agent
      at
      least one Business Day before such date that (i) it elects not to request the
      issuance of such Letter of Credit on such date or (ii) it elects to have such
      Letter of Credit issued on such date in a different Agreed Currency, as the
      case
      may be, in which the denomination of such Letter of Credit would in the
      reasonable opinion of the Issuing Banks, the Administrative Agent and the
      Required Lenders be practicable and in face amount equal to the Dollar Amount
      of
      the face amount specified in the related request or application for such Letter
      of Credit, as the case may be.

     

    SECTION
      2.22. Judgment
      Currency.
      If for
      the purposes of obtaining judgment in any court it is necessary to convert
      a sum
      due from the Borrower hereunder in the currency expressed to be payable herein
      (the “specified currency”) into another currency, the parties hereto agree, to
      the fullest extent that they may effectively do so, that the rate of exchange
      used shall be that at which in accordance with normal banking procedures the
      Administrative Agent could purchase the specified currency with such other
      currency at the Administrative Agent’s main New York City office on the Business
      Day preceding that on which final, non-appealable judgment is given. The
      obligations of the Borrower in respect of any sum due to any Lender or the
      Administrative Agent hereunder shall, notwithstanding any judgment in a currency
      other than the specified currency, be discharged only to the extent that on
      the
      Business Day following receipt by such Lender or the Administrative Agent (as
      the case may be) of any sum adjudged to be so due in such other currency such
      Lender or the Administrative Agent (as the case may be) may in accordance with
      normal, reasonable banking procedures purchase the specified currency with
      such
      other currency. If the amount of the specified currency so purchased is less
      than the sum originally due to such Lender or the Administrative Agent, as
      the
      case may be, in the specified currency, the Borrower agrees, to the fullest
      extent that it may effectively do so, as a separate obligation and
      notwithstanding any such judgment, to indemnify such Lender or the
      Administrative Agent, as the case may be, against such loss, and if the amount
      of the specified currency so purchased exceeds (a) the sum originally due to
      any
      Lender or the Administrative Agent, as the case may be, in the specified
      currency and (b) any amounts shared with other Lenders as a result of
      allocations of such excess as a disproportionate payment to such Lender under
      Section 2.18, such Lender or the Administrative Agent, as the case may be,
      agrees to remit such excess to the Borrower.

     

    
      
         

        
        

      

      
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    ARTICLE
      III

     

    Representations
      and Warranties

     

    The
      Borrower represents and warrants to the Lenders that:

     

    SECTION
      3.01. Organization;
      Powers; Subsidiaries.
      Each of
      the Borrower and its Subsidiaries is duly organized, validly existing and in
      good standing under the laws of the jurisdiction of its organization, has all
      requisite power and authority to carry on its business as now conducted and,
      except where the failure to do so, individually or in the aggregate, could
      not
      reasonably be expected to result in a Material Adverse Effect, is qualified
      to
      do business in, and is in good standing in, every jurisdiction where such
      qualification is required. Schedule
      3.01
      hereto
      (as supplemented from time to time) identifies each Subsidiary, the jurisdiction
      of its incorporation or organization, as the case may be, the percentage of
      issued and outstanding shares of each class of its capital stock or other equity
      interests owned by the Borrower and the other Subsidiaries and, if such
      percentage is not 100% (excluding directors’ and nominees’ qualifying shares as
      required by law), a description of each class issued and outstanding. All of
      the
      outstanding shares of capital stock and other equity interests of each
      Subsidiary are validly issued and outstanding and fully paid and nonassessable
      and all such shares and other equity interests indicated on Schedule
      3.01
      as owned
      by the Borrower or another Subsidiary are owned, beneficially and of record,
      by
      the Borrower or any Subsidiary free and clear of all Liens. There are no
      outstanding commitments or other obligations of the Borrower or any Subsidiary
      to issue, and no options, warrants or other rights of any Person to acquire,
      any
      shares of any class of capital stock or other equity interests of the Borrower
      or any Subsidiary.

     

    SECTION
      3.02. Authorization;
      Enforceability.
      The
      Transactions are within the Borrower’s corporate powers and have been duly
      authorized by all necessary corporate and, if required, stockholder action.
      This
      Agreement has been duly executed and delivered by the Borrower and constitutes
      a
      legal, valid and binding obligation of the Borrower, enforceable in accordance
      with its terms, subject to applicable bankruptcy, insolvency, reorganization,
      moratorium or other laws affecting creditors’ rights generally and subject to
      general principles of equity, regardless of whether considered in a proceeding
      in equity or at law.

     

    SECTION
      3.03. Governmental
      Approvals; No Conflicts.
      The
      Transactions (a) do not require any consent or approval of, registration or
      filing with, or any other action by, any Governmental Authority, except such
      as
      have been obtained or made and are in full force and effect, (b) will not
      violate any applicable law or regulation or the charter, by-laws or other
      organizational documents of the Borrower or any of its Subsidiaries or any
      order
      of any Governmental Authority, (c) will not violate or result in a default
      under
      any indenture, agreement or other instrument binding upon the Borrower or any
      of
      its Subsidiaries or its assets, or give rise to a right thereunder to require
      any payment to be made by the Borrower or any of its Subsidiaries, and (d)
      will
      not result in the creation or imposition of any Lien on any asset of the
      Borrower or any of its Subsidiaries.

     

    SECTION
      3.04. Financial
      Condition; No Material Adverse Change.
      (a)
      The
      Borrower has heretofore furnished to the Lenders its consolidated balance sheet
      and statements of income, stockholders equity and cash flows (i) as of and
      for
      the fiscal year ended October 1, 2004
      reported on by Ernst & Young LLP, independent public accountants, and (ii)
      as of and for the fiscal quarter and the portion of the fiscal year ended July
      1, 2005, certified by its chief financial officer. Such financial statements
      present fairly, in all material respects, the financial position and results
      of
      operations and cash flows of the Borrower and its consolidated Subsidiaries
      as
      of such dates and for such periods in accordance with GAAP, subject to year-end
      audit adjustments and the absence of footnotes in the case of the statements
      referred to in clause (ii) above.

     

    
      
         

        
        

      

      
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    (b)
      Since
      October 1, 2004, there has been no material adverse change in the business,
      assets, property, condition (financial or otherwise), operations or prospects,
      of the Borrower and the Subsidiaries taken as a whole.

     

    SECTION
      3.05. Properties.
      (a)
      Each of
      the Borrower and its Subsidiaries has good title to, or valid leasehold
      interests in, all its real and personal property material to its business,
      except for minor defects in title that do not interfere with its ability to
      conduct its business as currently conducted or to utilize such properties for
      their intended purposes. There are no Liens on any of the real or personal
      properties of the Borrower or any Subsidiary except for Liens permitted by
      Section 6.02. 

     

    (b)
      Each
      of the Borrower and its Subsidiaries owns, or is licensed to use, all
      trademarks, tradenames, copyrights, patents and other intellectual property
      material to its business, and the use thereof by the Borrower and its
      Subsidiaries does not infringe upon the rights of any other Person, except
      for
      any such infringements that, individually or in the aggregate, could not
      reasonably be expected to result in a Material Adverse Effect.

     

    SECTION
      3.06. Litigation
      and Environmental Matters.
      (a)
      There
      are no actions, suits or proceedings by or before any arbitrator or Governmental
      Authority pending against or, to the knowledge of the Borrower, threatened
      against or affecting the Borrower or any of its Subsidiaries (i) as to which
      there is a reasonable possibility of an adverse determination and that, if
      adversely determined, could reasonably be expected, individually or in the
      aggregate, to result in a Material Adverse Effect or (ii) that involve this
      Agreement or the Transactions. There are no labor controversies pending against
      or, to the knowledge of the Borrower, threatened against or affecting the
      Borrower or any of its Subsidiaries (i) which could reasonably be expected,
      individually or in the aggregate, to result in a Material Adverse Effect, or
      (ii) that involve this Agreement or the Transactions.

     

    (b)
      Except with respect to any matters that, individually or in the aggregate,
      could
      not reasonably be expected to result in a Material Adverse Effect, neither
      the
      Borrower nor any of its Subsidiaries (i) has failed to comply with any
      Environmental Law or to obtain, maintain or comply with any permit, license
      or
      other approval required under any Environmental Law, (ii) has become subject
      to
      any Environmental Liability, (iii) has received notice of any claim with respect
      to any Environmental Liability or (iv) knows of any basis for any Environmental
      Liability.

     

    (c)
      Neither the Borrower nor any Subsidiary is party or subject to any law,
      regulation, rule or order, or any obligation under any agreement or instrument,
      that has a Material Adverse Effect.

     

    
      
        
        

      

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

     

    SECTION
      3.08. Investment
      and Holding Company Status.
      Neither
      the Borrower nor any of its Subsidiaries is (a) an “investment company” as
      defined in, or subject to regulation under, the Investment Company Act of 1940
      or (b) a “holding company” as defined in, or subject to regulation under, the
      Public Utility Holding Company Act of 1935.

     

    SECTION
      3.09. Taxes.
      Each of
      the Borrower and its Subsidiaries has timely filed or caused to be filed all
      Tax
      returns and reports required to have been filed and has paid or caused to be
      paid all Taxes required to have been paid by it, except (a) Taxes that are
      being
      contested in good faith by appropriate proceedings and for which the Borrower
      or
      such Subsidiary, as applicable, has set aside on its books adequate reserves
      or
      (b) to the extent that the failure to do so could not reasonably be expected
      to
      result in a Material Adverse Effect.

     

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

     

    SECTION
      3.11. Disclosure.
      The
      Borrower has disclosed to the Lenders all agreements, instruments and corporate
      or other restrictions to which it or any of its Subsidiaries is subject, and
      all
      other matters known to it, that, individually or in the aggregate, could
      reasonably be expected to result in a Material Adverse Effect. Neither the
      Information Memorandum nor any of the other reports, financial statements,
      certificates or other information furnished by or on behalf of the Borrower
      to
      the Administrative Agent or any Lender in connection with the negotiation of
      this Agreement or delivered hereunder (as modified or supplemented by other
      information so furnished) contains any material misstatement of fact or omits
      to
      state any material fact necessary to make the statements therein, in the light
      of the circumstances under which they were made, not misleading; provided
      that,
      with respect to projected financial information, the Borrower represents only
      that such information was prepared in good faith based upon assumptions believed
      to be reasonable at the time.

     

    SECTION
      3.12. Federal
      Reserve Regulations.
      No part
      of the proceeds of any Loan have been used or will be used, whether directly
      or
      indirectly, for any purpose that entails a violation of any of the Regulations
      of the Board, including Regulations T, U and X.

     

    
      SECTION
        3.13. No
        Default.
        The
        Borrower is in full compliance with this Agreement and no Default or Event
        of
        Default has occurred and is continuing.

    

    
      
         

        
        

      

      
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    ARTICLE
      IV

     

    Conditions

     

    SECTION
      4.01. Effective
      Date.
      The
      obligations of the Lenders to make Loans and of any Issuing Bank to issue
      Letters of Credit hereunder shall not become effective until the date on which
      each of the following conditions is satisfied (or waived in accordance with
      Section 9.02):

     

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

     

    (b)
      The
      Administrative Agent shall have received favorable written opinions (addressed
      to the Administrative Agent and the Lenders and dated the Effective Date) of
      Reinhart Boerner Van Deuren s.c., counsel for the Loan Parties, and such other
      local counsel opinions as may be applicable, substantially in the form of
Exhibit
      B,
      and
      covering such other matters relating to the Loan Parties, the Loan Documents
      or
      the Transactions as the Required Lenders shall reasonably request. The Borrower
      hereby requests such counsel to deliver such opinion.

     

    (c)
      The
      Lenders shall have received (i) reasonably satisfactory audited consolidated
      financial statements of the Borrower for the two most recent fiscal years ended
      prior to the Effective Date as to which such financial statements are available,
      (ii) reasonably satisfactory unaudited interim consolidated financial statements
      of the Borrower for each quarterly period ended subsequent to the date of the
      latest financial statements delivered pursuant to clause (i) of this paragraph
      as to which such financial statements are available and (iii) reasonably
      satisfactory financial statement projections through and including the
      Borrower’s 2010 fiscal year, together with such information as the
      Administrative Agent and the Lenders shall reasonably request.

     

    (d)
      The
      Administrative Agent shall have received such documents and certificates as
      the
      Administrative Agent or its counsel may reasonably request relating to the
      organization, existence and good standing of the Borrower, the authorization
      of
      the Transactions and any other legal matters relating to the Loan Parties,
      the
      Loan Documents or the Transactions, all in form and substance satisfactory
      to
      the Administrative Agent and its counsel and as further described in the list
      of
      closing documents attached as Exhibit
      E.

     

    (e)
      The
      Administrative Agent shall have received a certificate, dated the Effective
      Date
      and signed by the President, a Vice President or a Financial Officer of the
      Borrower,
      confirming compliance with the conditions set forth in paragraphs (a) and (b)
      of
      Section 4.02.

    
      
         

        
        

      

      
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    (f)
      The
      Administrative Agent shall have received evidence satisfactory to it that all
      of
      the Borrower’s existing credit facilities (other than the Indebtedness
      identified as continuing indebtedness in Schedule 6.01 hereto) shall have been
      cancelled and terminated and all indebtedness thereunder shall have been fully
      repaid (except to the extent being so repaid with the initial Revolving Credit
      Loans).

     

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

     

    The
      Administrative Agent shall notify the Borrower and the Lenders of the Effective
      Date, and such notice shall be conclusive and binding. Notwithstanding the
      foregoing, the obligations of the Lenders to make Loans and of the Issuing
      Banks
      to issue Letters of Credit hereunder shall not become effective unless each
      of
      the foregoing conditions is satisfied (or waived pursuant to Section 9.02)
      at or
      prior to 3:00 p.m., Chicago time, on the Effective Date (and, in the event
      such
      conditions are not so satisfied or waived, the Commitments shall terminate
      at
      such time).

     

    SECTION
      4.02. Each
      Credit Event.
      The
      obligation of each Lender to make a Loan on the occasion of any Borrowing,
      and
      of any Issuing Bank to issue, amend, renew or extend any Letter of Credit,
      is
      subject to the satisfaction of the following conditions:

     

    (a)
      The
      representations and warranties of the Borrower set forth in this Agreement
      shall
      be true and correct on and as of the date of such Borrowing or the date of
      issuance, amendment, renewal or extension of such Letter of Credit, as
      applicable.

     

    (b)
      At
      the time of and immediately after giving effect to such Borrowing or the
      issuance, amendment, renewal or extension of such Letter of Credit, as
      applicable, no Default shall have occurred and be continuing.

     

    Each
      Borrowing and each issuance, amendment, renewal or extension of a Letter of
      Credit shall be deemed to constitute a representation and warranty by the
      Borrower on the date thereof as to the matters specified in paragraphs (a)
      and
      (b) of this Section.

     

    ARTICLE
      V

     

    Affirmative
      Covenants

     

    Until
      the
      Commitments have expired or been terminated and the principal of and interest
      on
      each Loan and all fees payable hereunder shall have been paid in full and all
      Letters of Credit shall have expired or terminated and all LC Disbursements
      shall have been reimbursed, the Borrower covenants and agrees with the Lenders
      that:

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

    SECTION
      5.01. Financial
      Statements and Other Information.
      The
      Borrower will furnish to the Administrative Agent and each Lender:

     

    (a)
      within ninety (90) days after the end of each fiscal year of the Borrower,
      its
      audited consolidated balance sheet and related statements of operations,
      stockholders’ equity and cash flows as of the end of and for such year, setting
      forth in each case in comparative form the figures for the previous fiscal
      year,
      all reported on by Ernst & Young LLP or other independent public accountants
      of recognized national standing (without a “going concern” or like qualification
      or exception and without any qualification or exception as to the scope of
      such
      audit) to the effect that such consolidated financial statements present fairly
      in all material respects 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 forty-five (45) days after the end of each of the first three fiscal
      quarters of each fiscal year of the Borrower, its consolidated balance sheet
      and
      related statements of operations, stockholders’ equity and cash flows as of the
      end of and for such fiscal quarter and the then elapsed portion of the fiscal
      year, setting forth in each case in comparative form the figures for the
      corresponding period or periods of (or, in the case of the balance sheet, as
      of
      the end of) the previous fiscal year, all certified by one of its Financial
      Officers as presenting fairly in all material respects 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 and the absence of footnotes;

     

    (c)
      concurrently with any delivery of financial statements under clause (a) or
      (b)
      above, a certificate of a Financial Officer of the Borrower (i) certifying
      as to
      whether a Default has occurred and, if a Default has occurred, specifying the
      details thereof and any action taken or proposed to be taken with respect
      thereto, (ii) setting forth reasonably detailed calculations demonstrating
      compliance with Sections 6.01, 6.04, 6.05, 6.12 and 6.13 and (iii) stating
      whether any change in GAAP or in the application thereof has occurred since
      the
      date of the audited financial statements referred to in Section 3.04 and, if
      any
      such change has occurred, specifying the effect of such change on the financial
      statements accompanying such certificate;

     

    (d)
      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 Securities and Exchange Commission, or any Governmental
      Authority succeeding to any or all of the functions of said Commission, or
      with
      any national securities exchange, or distributed by the Borrower to its
      shareholders generally, as the case may be; and

     

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

     

    
      
         

        
        

      

      
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    SECTION
      5.02. Notices
      of Material Events.
      The
      Borrower will furnish to the Administrative Agent and each Lender prompt written
      notice of the following:

     

    (a)
      the
      occurrence of any Default;

     

    (b)
      the
      filing or commencement of any action, suit or proceeding by or before any
      arbitrator or Governmental Authority against or affecting the Borrower or any
      Affiliate thereof that, if adversely determined, 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 have a Material
      Adverse Effect; and

     

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

     

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

     

    SECTION
      5.03. Existence;
      Conduct of Business.
      The
      Borrower will, and will cause each of its Subsidiaries to, do or cause to be
      done all things necessary to preserve, renew and keep in full force and effect
      its legal existence and the rights, licenses, permits, privileges and franchises
      material to the conduct of its business; provided
      that the
      foregoing shall not prohibit any merger, consolidation, liquidation or
      dissolution permitted under Section 6.03.

     

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

     

    SECTION
      5.05. Maintenance
      of Properties; Insurance.
      The
      Borrower will, and will cause each of its Subsidiaries to, (a) keep and maintain
      all property material to the conduct of its business in good working order
      and
      condition, ordinary wear and tear excepted, and (b) maintain, with financially
      sound and reputable insurance companies, insurance in such amounts and against
      such risks as are customarily maintained by companies engaged in the same or
      similar businesses operating in the same or similar locations.

     

    SECTION
      5.06. Books
      and Records; Inspection Rights.
      The
      Borrower will, and will cause each of its Subsidiaries to, keep proper books
      of
      record and account in which full, true and correct entries are made of all
      dealings and transactions in relation to its business and activities. The
      Borrower will, and will cause each of its Subsidiaries to, permit any
      representatives designated by the Administrative Agent or any Lender, upon
      reasonable prior notice,
      to visit and inspect its properties, to examine and make extracts from its
      books
      and records, and to discuss its affairs, finances and condition with its
      officers and independent accountants, all at such reasonable times and as often
      as reasonably requested.

    
      
         

        
        

      

      
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    SECTION
      5.07. Compliance
      with Laws.
      The
      Borrower will, and will cause each of its Subsidiaries to, comply with all
      laws,
      rules, regulations and orders of any Governmental Authority applicable to it
      or
      its property (including without limitation Environmental Laws), except where
      the
      failure to do so, individually or in the aggregate, could not reasonably be
      expected to result in a Material Adverse Effect.

     

    SECTION
      5.08. Use
      of
      Proceeds and Letters of Credit.
      The
      proceeds of the Loans will be used only to repay existing Indebtedness on the
      Effective Date, finance the working capital needs, and for general corporate
      purposes, of the Borrower and its Subsidiaries in the ordinary course of
      business. No part of the proceeds of any Loan will be used, whether directly
      or
      indirectly, for any purpose that entails a violation of any of the Regulations
      of the Board, including Regulations T, U and X. Letters of Credit will be
      requested and utilized by the Borrower and its Subsidiaries only for general
      corporate purposes.

     

    SECTION
      5.09. Subsidiary
      Guaranty.
      As
      promptly as possible but in any event within thirty (30) days (or such later
      date as may be agreed upon by the Administrative Agent) after any Person becomes
      a Subsidiary or merges into a Subsidiary pursuant to Section 6.03, the Borrower
      shall provide the Administrative Agent with written notice thereof setting
      forth
      information in reasonable detail describing the material assets of such Person
      and shall cause each such Subsidiary which also qualifies as a Subsidiary
      Guarantor to deliver to the Administrative Agent the Subsidiary Guaranty
      pursuant to which such Subsidiary agrees to be bound by the terms and provisions
      of thereof, such Subsidiary Guaranty to be accompanied by appropriate corporate
      resolutions, other corporate documentation and legal opinions in form and
      substance reasonably satisfactory to the Administrative Agent and its
      counsel.

     

    ARTICLE
      VI

     

    Negative
      Covenants

     

    Until
      the
      Commitments have expired or terminated and the principal of and interest on
      each
      Loan and all fees payable hereunder have been paid in full and all Letters
      of
      Credit have expired or terminated and all LC Disbursements shall have been
      reimbursed, the Borrower covenants and agrees with the Lenders
      that:

     

    SECTION
      6.01. Indebtedness.
      The
      Borrower will not, and will not permit any Subsidiary to, create, incur, assume
      or permit to exist any Indebtedness, except:

     

    (a)
      Indebtedness created under the Loan Documents;

     

    (b)
      Indebtedness existing on the date hereof and set forth in Schedule
      6.01
      and
      extensions, renewals and replacements of any such Indebtedness with Indebtedness
      of a similar type that does not increase the outstanding principal amount
      thereof;

     

    
      
         

        
        

      

      
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    (c)
      Indebtedness of the Borrower to any Subsidiary and of any Subsidiary to the
      Borrower or any other Subsidiary; provided
      that
      Indebtedness by any Subsidiary which is not a Loan Party to the Borrower or
      any
      other Subsidiary shall comply with the proviso in Section 6.04(d);

     

    (d)
      Guarantees by the Borrower of Indebtedness of any Subsidiary and by any
      Subsidiary of Indebtedness of the Borrower or any other Subsidiary; provided
      that
      Guarantees by the Borrower or any Subsidiary of Indebtedness of any Subsidiary
      which is not a Loan Party shall comply with the proviso in Section
      6.04(d);

     

    (e)
      Indebtedness of the Borrower or any Subsidiary incurred to finance the
      acquisition, construction or improvement of any fixed or capital assets,
      including Capital Lease Obligations and any Indebtedness assumed in connection
      with the acquisition of any such assets or secured by a Lien on any such assets
      prior to the acquisition thereof, and extensions, renewals and replacements
      of
      any such Indebtedness that do not increase the outstanding principal amount
      thereof; provided
      that (i)
      such Indebtedness is incurred prior to or within ninety (90) days after such
      acquisition or the completion of such construction or improvement and (ii)
      the
      aggregate principal amount of Indebtedness permitted by this clause (e) shall
      not exceed $10,000,000 at any time outstanding;

     

    (f)
      Indebtedness of the Borrower or any Subsidiary as an account party in respect
      of
      trade letters of credit; 

     

    (g)
      Indebtedness constituting (a) accounts payable of the Borrower and its
      Subsidiaries arising in the ordinary course of business payable on terms
      customary in the trade and consistent with past practice, (b) payroll accruals,
      (c) tax, assessments and other governmental charges which are not yet due or
      which are being contested in good faith by appropriate proceedings and with
      respect to which adequate reserves have been set aside in accordance with GAAP,
      and (d) other similar unsecured Indebtedness incurred in the ordinary course
      of
      business and consistent with past practice, but not incurred through the
      borrowing of money or the obtaining of credit;

     

    (h)
      Indebtedness in connection with overdraft facilities in an aggregate outstanding
      principal amount not to exceed $10,000,000; 

     

    (i)
      Indebtedness evidenced by letters of credit (other than Letters of Credit)
      in an
      aggregate face amount not to exceed $10,000,000 at any time; and

     

    (j)
      other
      unsecured Indebtedness in an aggregate principal amount not exceeding
      $10,000,000 at any time outstanding.

     

    SECTION
      6.02. Liens.
      The
      Borrower will not, and will not permit any Subsidiary to, create, incur, assume
      or permit to exist any Lien on any property or asset now owned or hereafter
      acquired by it, or assign or sell any income or revenues (including accounts
      receivable) or rights in respect of any thereof, except:

     

    (a)
      Permitted Encumbrances;

     

    
      
         

        
        

      

      
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       (b) any Lien on any property or asset of the Borrower or any Subsidiary
      existing on the date hereof and set forth in Schedule
      6.02;
      provided that (i) such Lien shall not apply to any other property or asset
      of
      the Borrower or any Subsidiary and (ii) such Lien shall secure only those
      obligations which it secures on the date hereof and extensions, renewals and
      replacements thereof that do not increase the outstanding principal amount
      thereof;

     

    (c)
      any
      Lien existing on any property or asset prior to the acquisition thereof by
      the
      Borrower or any Subsidiary or existing on any property or asset of any Person
      that becomes a Subsidiary after the date hereof prior to the time such Person
      becomes a Subsidiary; provided that (i) such Lien is not created in
      contemplation of or in connection with such acquisition or such Person becoming
      a Subsidiary, as the case may be, (ii) such Lien shall not apply to any other
      property or assets of the Borrower or any Subsidiary and (iii) such Lien shall
      secure only those obligations which it secures on the date of such acquisition
      or the date such Person becomes a Subsidiary, as the case may be and extensions,
      renewals and replacements thereof that do not increase the outstanding principal
      amount thereof; 

     

    (d)
      Liens
      of a collecting bank arising in the ordinary course of business under Section
      4-208 of the Uniform Commercial Code in effect in the relevant jurisdiction
      covering only the items being collected upon; 

     

    (e)
      Liens
      arising out of sale and leaseback transactions permitted by Section 6.06;
      and

     

    (f)
      Liens
      on fixed or capital assets acquired, constructed or improved by the Borrower
      or
      any Subsidiary; provided
      that (i)
      such security interests secure Indebtedness permitted by clause (e) of Section
      6.01, (ii) such security interests and the Indebtedness secured thereby are
      incurred prior to or within ninety (90) days after such acquisition or the
      completion of such construction or improvement, (iii) the Indebtedness secured
      thereby does not exceed 100% of the cost of acquiring, constructing or improving
      such fixed or capital assets and (iv) such security interests shall not apply
      to
      any other property or assets of the Borrower or any Subsidiary.

     

    SECTION
      6.03. Fundamental
      Changes.
      The
      Borrower will not, and will not permit any Subsidiary to, 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 its
      assets, or all or substantially all of the stock of any of its Subsidiaries
      (in
      each case, whether now owned or hereafter acquired), or liquidate or dissolve,
      except that, if at the time thereof and immediately after giving effect thereto
      no Default shall have occurred and be continuing (i) any Person may merge into
      the Borrower in a transaction in which the Borrower is the surviving
      corporation, (ii) any Subsidiary/Person may merge into any Subsidiary in a
      transaction in which the surviving entity is a Subsidiary, (iii) any Subsidiary
      may sell, transfer, lease or otherwise dispose of its assets to the Borrower
      or
      to another Subsidiary (subject to the limitations of Section 6.04) and (iv)
      any
      Subsidiary may liquidate or dissolve if the Borrower determines in good faith
      that such liquidation or dissolution is in the best interests of the Borrower
      and is not materially disadvantageous to the Lenders; provided that any such
      merger involving a Person that is not a wholly-owned
      Subsidiary immediately prior to such merger shall not be permitted unless also
      permitted by Section 6.04.

    
      
         

        
        

      

      
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    SECTION
      6.04. Investments,
      Loans, Advances, Guarantees and Acquisitions.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, purchase,
      hold or acquire (including pursuant to any merger with any Person that was
      not a
      wholly-owned Subsidiary prior to such merger) any capital stock, evidences
      of
      indebtedness or other securities (including any option, warrant or other right
      to acquire any of the foregoing) of, make or permit to exist any loans or
      advances to, Guarantee any obligations of, or make or permit to exist any
      investment or any other interest in, any other Person, or purchase or otherwise
      acquire (in one transaction or a series of transactions) any assets of any
      other
      Person constituting a business unit, except: 

     

    (a)
      Permitted Investments;

     

    (b)
      Permitted Acquisitions;

     

    (c)
      investments by the Borrower in the capital stock of its Subsidiaries;
provided
      that
      investments by the Borrower in the capital stock of any Subsidiary which is
      not
      a Loan Party shall comply with the proviso in Section 6.04(d);

     

    (d)
      loans
      or advances made by the Borrower to any Subsidiary and made by any Subsidiary
      to
      the Borrower or any other Subsidiary; provided
      that the
      Borrower will not, nor will it permit any other Loan Party to, enter into or
      suffer to exist Other Subsidiary Investments at any time during any fiscal
      year
      (but calculated exclusive of all Other Subsidiary Investments existing
      immediately prior to such fiscal year) of the Borrower in an aggregate amount
      greater than $5,000,000;

     

    (e)
      Guarantees constituting Indebtedness permitted by Section 6.01; 

     

    (f)
      investments in existence on the date of this Agreement and described in
Schedule
      6.04;
      

     

    (g)
      notes
      payable or stock or other securities issued by account debtors to the Borrower
      or any Subsidiary pursuant to negotiated agreements with respect to settlement
      of such account debtor’s accounts in the ordinary course of business, consistent
      with past practices;

     

    (h)
      loans
      or advances made by the Borrower or any Subsidiary to its employees on an
      arms’-length basis 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 $2,000,000 in the aggregate at any one time
      outstanding; 

     

    (i)
      investments in the form of Swap Agreements permitted by Section 6.07;

     

    (j)
      investments of any Person existing at the time such Person becomes a Subsidiary
      of the Borrower or consolidates or merges with the Borrower or any of the
      Subsidiaries (including in connection with a Permitted Acquisition) so long
      as
      such investments were not made in contemplation of such Person becoming a
      Subsidiary or of such merger; 

     

    
      
         

        
        

      

      
        53

        
          

        

      

      
        
        

      

    

    (k)
      investments received in connection with the disposition of assets permitted
      by
      Section 6.05; 

     

    (l)
      investments constituting deposits described in clauses (c) and (d) of the
      definition of “Permitted Encumbrances”; 

     

    (m)
      loans
      or advances made by the Borrower or any Subsidiary to a Foreign Subsidiary
      prior
      to September 29, 2006 in an aggregate amount not to exceed the lesser of (i)
      the
      aggregate amount of dividends and distributions received by the Borrower from
      its Foreign Subsidiaries prior to September 29, 2006, or (ii) $25,000,000;
      and

     

    (n)
      investments not otherwise permitted by clauses (a) through (m) above, provided
      that at the time such investment is made, (i) all investments made pursuant
      to
      this clause (n) in the aggregate shall not exceed ten percent (10%) of
      Consolidated Net Worth as of the end of the fiscal quarter ending immediately
      prior to the fiscal quarter in which such investment is made, (ii) no Default
      has occurred and is continuing or would arise after giving effect thereto and
      (iii) with respect to any such investment that constitutes an Acquisition (1)
      the Borrower shall have satisfied the requirements of clauses (b), (d) and
      (e)
      of the definition of “Permitted Acquisions” and (2) such Acquisition is not a
      Hostile Acquisition.

     

    SECTION
      6.05. Asset
      Sales.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, sell,
      transfer, lease or otherwise dispose of any asset, including any Equity Interest
      owned by it, nor will the Borrower permit any Subsidiary to issue any additional
      Equity Interest in such Subsidiary (other than to the Borrower or another
      Subsidiary in compliance with Section 6.04), except: 

     

    (a)
      sales, transfers and dispositions of (i) inventory in the ordinary course of
      business and (ii) used, obsolete, worn out or surplus equipment or property
      in
      the ordinary course of business;

     

    (b)
      sales, transfers and dispositions to the Borrower or any Subsidiary,
provided
      that any
      such sales, transfers or dispositions involving a Subsidiary that is not a
      Subsidiary Guarantor shall be made in compliance with Section 6.09;

     

    (c)
      sales, transfers and dispositions of accounts receivable in connection with
      the
      compromise, settlement or collection thereof;

     

    (d)
      sales, transfers and dispositions of investments permitted by clauses (i) and
      (l) of Section 6.04;

     

    (e)
      sale
      and leaseback transactions permitted by Section 6.06;

     

    (f)
      dispositions resulting from any casualty or other insured damage to, or any
      taking under power of eminent domain or by condemnation or similar proceeding
      of, any property or asset of the Borrower or any Subsidiary; and

     

     

    
      
        
        

      

      
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      (g)
        sales, transfers and other dispositions of assets (other than Equity Interests
        in a Subsidiary unless all Equity Interests in such Subsidiary are sold)
        that
        are not permitted by any other paragraph of this Section, provided that
        each such transaction (i) is for consideration consisting of at least
        eighty-five percent (85%) of cash, (ii) is for not less than fair market
        value
        (as determined in good faith by the Borrower’s board of directors), (iii) after
        giving effect to such transaction, no Default or Event of Default shall exist,
        (iv) together with all other such transactions under this subsection (g)
        calculated at book value (1) during the immediately preceding twelve-month
        period, represent the disposition of (x) not greater than twenty percent
        (20%)
        of the Borrower’s Consolidated Total Assets at the end of the fiscal year
        immediately preceding that in which such transaction is proposed to be entered
        into and (y) assets that comprised not greater than twenty percent (20%)
        of the
        Borrower’s Consolidate Net Income for such preceding fiscal year, and (2) during
        the period from the date hereof to the date of such proposed transaction
        represents the disposition of (x) not greater than thirty-five percent (35%)
        of
        the Borrower’s Consolidated Total Assets at the end of the fiscal year
        immediately preceding that in which such transaction is proposed to be entered
        into and (y) assets that comprised not greater than thirty-five percent (35%)
        of
        the Borrower’s Consolidated Net Income for such preceding fiscal year and (v)
        the Borrower and the Subsidiaries are in compliance, on a pro forma basis
        reasonably acceptable to the Administrative Agent after giving effect to
        such
        transaction (including pro forma adjustments arising out of events which
        are
        directly attributable to the sale, transfer or disposition of assets, are
        factually supportable and are expected to have a continuing impact, in each
        case
        as determined on a basis consistent with Article 11 of Regulation S-X of
        the
        Securities Act of 1933, as amended, as interpreted by the SEC), with the
        covenants contained in Section 6.13 recomputed as of the last day of the
        most
        recently ended fiscal quarter of the Borrower for which financial statements
        are
        available, as if such transaction had occurred on the first day of each relevant
        period for testing such compliance and, if the assets sold, transferred or
        disposed of in such transaction represent the disposition of assets (1)
        exceeding five percent (5%) of the Borrower’s Consolidated Total Assets as at
        the end of the fiscal year immediately preceding that in which such transaction
        is proposed to be entered into or (2) comprising greater than five percent
        (5%)
        of the Borrower’s Consolidated Net Income for such preceding fiscal year, the
        Borrower shall have delivered to the Administrative Agent a certificate of
        a
        Financial Officer of the Borrower to such effect (and if the assets sold,
        transferred or disposed of in such transaction represent the disposition
        of
        assets (1) exceeding ten percent (10%) of the Borrower’s Consolidated Total
        Assets as at the end of the fiscal year immediately preceding that in which
        such
        transaction is proposed to be entered into or (2) comprising greater than
        ten
        percent (10%) of the Borrower’s Consolidated Net Income for such preceding
        fiscal year, such certificate and the supporting calculations shall have
        been
        reviewed by Ernst & Young LLP or other independent public accountants of
        recognized national standing), together with all relevant financial information
        requested by the Administrative Agent;

    

     

    provided
      that all sales, transfers, leases and other dispositions permitted hereby (other
      than those permitted by paragraphs (b) and (f) above) shall be made for fair
      value and for at least 85% cash consideration.

    

    SECTION
      6.06. Sale
      and Leaseback Transactions.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, enter into
      any arrangement, directly or indirectly, 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
      that it intends to use for substantially the same purpose or purposes as the
      property sold or transferred, except for any such sale of any fixed or capital
      assets by the Borrower or any Subsidiary
      that is made for cash consideration in an amount not less than the fair value
      of
      such fixed or capital asset and is consummated within 90 days after the Borrower
      or such Subsidiary acquires or completes the construction of such fixed or
      capital asset.

     

    
      
         

        
        

      

      
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    SECTION
      6.07. Swap
      Agreements.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, enter into
      any Swap Agreement, except (a) Swap Agreements entered into to hedge or mitigate
      risks to which the Borrower or any Subsidiary has actual exposure (other than
      those in respect of Equity Interests of the Borrower or any of its
      Subsidiaries), and (b) Swap Agreements entered into in order to effectively
      cap,
      collar or exchange interest rates (from fixed to floating rates, from one
      floating rate to another floating rate or otherwise) with respect to any
      interest-bearing liability or investment of the Borrower or any
      Subsidiary.

     

    SECTION
      6.08. Restricted
      Payments.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, declare
      or
      make, or agree to pay or make, directly or indirectly, any Restricted Payment,
      or incur any obligation (contingent or otherwise) to do so, except (a) the
      Borrower may declare and pay dividends with respect to its Equity Interests
      payable solely in additional shares of its common stock, (b) Subsidiaries may
      declare and pay dividends ratably with respect to their Equity Interests, (c)
      the Borrower may make Restricted Payments pursuant to and in accordance with
      stock option plans or other benefit plans for management or employees of the
      Borrower and its Subsidiaries and (d) so long as no Default has occurred and
      is
      continuing or would arise after giving effect thereto, the Borrower may make
      distributions and redeem, repurchase, acquire or retire an amount of its capital
      stock during the period from and after October 3, 2004 to and including the
      date
      such distribution is made or other action is taken, up to an amount, in the
      aggregate for such period, equal to (x) $15,000,000 plus (y) 50% of Consolidated
      Net Income (or minus 50% of any loss) earned in such period, computed on a
      cumulative basis for said entire period.

     

    SECTION
      6.09. Transactions
      with Affiliates.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, sell, lease
      or otherwise transfer any property or assets to, or purchase, lease or otherwise
      acquire any property or assets material to its business from, or otherwise
      engage in any other transactions with, any of its Affiliates, except (a) in
      the
      ordinary course of business 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 and (b) transactions between or
      among the Borrower and its wholly-owned Subsidiaries not involving any other
      Affiliate.

     

    SECTION
      6.10. Restrictive
      Agreements.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, directly
      or
      indirectly, enter into, incur or permit to exist any agreement or other
      arrangement that prohibits, restricts or imposes any condition upon (a) the
      ability of the Borrower or any Subsidiary to create, incur or permit to exist
      any Lien upon any of its property or assets, or (b) the ability of any
      Subsidiary to pay dividends or other distributions with respect to any shares
      of
      its capital stock or to make or repay loans or advances to the Borrower or
      any
      other Subsidiary or to Guarantee Indebtedness of the Borrower or any other
      Subsidiary; provided
      that (i)
      the foregoing shall not apply to restrictions and conditions imposed by law
      or
      by any Loan Document, (ii) the foregoing shall not apply to restrictions and
      conditions existing on the date hereof identified on Schedule
      6.10
      (but
      shall apply to any extension or renewal of, or any amendment or modification
      expanding the scope of, any such restriction or condition),
      (iii) the foregoing shall not apply to customary restrictions and conditions
      contained in agreements relating to the sale of a Subsidiary pending such sale,
      provided such restrictions and conditions apply only to the Subsidiary that
      is
      to be sold and such sale is permitted hereunder, (iv) clause (a) of the
      foregoing shall not apply to restrictions or conditions imposed by any agreement
      relating to secured Indebtedness permitted by this Agreement if such
      restrictions or conditions apply only to the property or assets securing such
      Indebtedness and (v) clause (a) of the foregoing shall not apply to customary
      provisions in leases and other contracts restricting the assignment
      thereof.

    
      
        
        

      

      
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    SECTION
      6.11. Amendment
      of Material Documents.
      The
      Borrower shall not, and will not permit any Subsidiary to, amend, modify or
      waive any of its rights under (a) agreement relating to any Subordinated
      Indebtedness or (b) its certificate of incorporation, by-laws, operating,
      management or partnership agreement or other organizational documents, to the
      extent any such amendment, modification or waiver would be adverse to the
      Lenders.

     

    SECTION
      6.12. [Intentionally
      Ommitted]. 

     

    SECTION
      6.13. Financial
      Covenants. 

     

    (a)
      Minimum
      Fixed Charge Coverage Ratio.
      The
      Borrower will not permit the Fixed Charge Coverage Ratio, determined as of
      the
      end of each of its fiscal quarters ending on and after September 30, 2005,
      for
      the period of four (4) consecutive fiscal quarters then ending, calculated
      for
      the Borrower and its Subsidiaries on a consolidated basis, to be less than
      2.0
      to 1.0.

     

    (b)
      Maximum
      Leverage Ratio.
      The
      Borrower will not permit the Leverage Ratio, determined as of the end of each
      of
      its fiscal quarters ending on and after September 30, 2005, calculated for
      the
      Borrower and its Subsidiaries on a consolidated basis, to be greater than 3.5
      to
      1.0.

     

    (c)
      Maintenance
      of Net Worth.
      The
      Borrower will not permit Consolidated Net Worth at any time to be less than
      the
      sum of (i) $144,262,000, plus (ii) 50% of positive Consolidated Net Income
      earned in each fiscal year, commencing with the fiscal year ending on after
      September 29, 2006, plus (iii) 75% of the net cash proceeds resulting from
      any
      issuance of capital stock by the Borrower.

     

    SECTION
      6.14. Fiscal
      Year.
      Neither
      the Borrower nor any of its Subsidiaries shall change its fiscal year for
      accounting or tax purposes from a period consisting of a 52/53 calendar week
      year ending on or about September 30 of each year without the prior written
      consent of the Administrative Agent.

     

    ARTICLE
      VII

     

    Events
      of Default

     

    If
      any of
      the following events (“Events
      of Default”)
      shall
      occur:

     

    
      (a)
        the
        Borrower shall fail to pay any principal of any Loan or any reimbursement
        obligation in respect of any LC 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 otherwise;

    

    
      
         

        
        

      

      
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    (b)
      the
      Borrower shall fail to pay any interest on any Loan or any fee or any other
      amount (other than an amount referred to in clause (a) of this Article) payable
      under this Agreement, when and as the same shall become due and payable, and
      such failure shall continue unremedied for a period of five (5) Business
      Days;

     

    (c)
      any
      representation or warranty made or deemed made by or on behalf of the Borrower
      or any Subsidiary in or in connection with this Agreement or any other Loan
      Document or any amendment or modification thereof or waiver thereunder, or
      in
      any report, certificate, financial statement or other document furnished
      pursuant to or in connection with this Agreement or any other Loan Document
      or
      any amendment or modification thereof or waiver thereunder, shall prove to
      have
      been materially incorrect when made or deemed made;

     

    (d)
      (i)
      the Borrower shall fail to observe or perform any covenant, condition or
      agreement contained in Section 5.02, 5.03 (with respect to the Borrower’s
      existence) or 5.08 or in Article VI or (ii) any Loan Document shall for any
      reason not be or shall cease to be in full force and effect or is declared
      to be
      null and void, or the Borrower or any Subsidiary takes any action for the
      purpose of terminating, repudiating or rescinding any Loan Document or any
      of
      its obligations thereunder;

     

    (e)
      the
      Borrower or any Subsidiary Guarantor, as applicable, shall fail to observe
      or
      perform any covenant, condition or agreement contained in this Agreement (other
      than those specified in clause (a), (b) or (d) of this Article) or any other
      Loan Document, and such failure shall continue unremedied for a period of thirty
      (30) days after notice thereof from the Administrative Agent to the Borrower
      (which notice will be given at the request of any Lender);

     

    (f)
      the
      Borrower or any Subsidiary shall fail to make any payment (whether of principal
      or interest and regardless of amount) in respect of any Material Indebtedness,
      when and as the same shall become due and payable, following the expiration
      of
      any applicable grace periods;

     

    (g)
      any
      event or condition occurs that results in any Material Indebtedness becoming
      due
      prior to its scheduled maturity or that enables or permits (with or without
      the
      giving of notice, the lapse of time or both) the holder or holders of any
      Material Indebtedness or any trustee or 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 (g) 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;

     

    (h)
      an
      involuntary proceeding shall be commenced or an involuntary petition shall
      be
      filed seeking (i) liquidation, reorganization or other relief in respect of
      the
      Borrower or any Subsidiary or its debts, or of a substantial part of its assets,
      under any Federal, state or foreign bankruptcy, insolvency, receivership or
      similar law now or hereafter in effect or (ii) the appointment of a receiver,
      trustee, custodian, sequestrator, conservator or similar official for the Borrower
      or any Subsidiary or for a substantial part of its assets, and, in any such
      case, such proceeding or petition shall continue undismissed for sixty (60)
      days
      or an order or decree approving or ordering any of the foregoing shall be
      entered;

     

    
      
         

        
        

      

      
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    (i)
      the
      Borrower or any Subsidiary shall (i) voluntarily commence any proceeding or
      file
      any petition seeking liquidation, reorganization or other relief under any
      Federal, state or foreign bankruptcy, insolvency, receivership or similar law
      now or hereafter in effect, (ii) consent to the institution of, or fail to
      contest in a timely and appropriate manner, any proceeding or petition described
      in clause (h) of this Article, (iii) apply for or consent to the appointment
      of
      a receiver, trustee, custodian, sequestrator, conservator or similar official
      for the Borrower or any Subsidiary or for a substantial part of its assets,
      (iv)
      file an answer admitting the material allegations of a petition filed against
      it
      in any such proceeding, (v) make a general assignment for the benefit of
      creditors or (vi) take any action for the purpose of effecting any of the
      foregoing;

     

    (j)
      the
      Borrower or any Subsidiary shall become unable, admit in writing its inability
      or fail generally to pay its debts as they become due;

     

    (k)
      one
      or more judgments for the payment of money in an aggregate amount in excess
      of
      $5,000,000 (except to the extent covered by independent third-party insurance
      as
      to which the insurer has not disclaimed coverage) shall be rendered against
      the
      Borrower, any Subsidiary or any combination thereof and the same shall remain
      undischarged for a period of thirty (30) consecutive days during which execution
      shall not be effectively stayed, or any action shall be legally taken by a
      judgment creditor to attach or levy upon any assets of the Borrower or any
      Subsidiary to enforce any such judgment;

     

    (l)
      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, would
      reasonably be expected to result in a Material Adverse Effect; or

     

    (m)
      a
      Change in Control shall occur;

     

    then,
      and
      in every such event (other than an event with respect to the Borrower described
      in clause (h) or (i) of this Article), and at any time thereafter during the
      continuance of such event, the Administrative Agent may, and at the request
      of
      the Required Lenders shall, by notice to the Borrower, take either or both
      of
      the following actions, at the same or different times: (i) terminate the
      Commitments, and thereupon the Commitments shall terminate immediately, and
      (ii)
      declare the Loans then outstanding to be due and payable in whole (or in part,
      in which case any principal not so declared to be due and payable may thereafter
      be declared to be due and payable), and thereupon the principal of the Loans
      so
      declared to be due and payable, together with accrued interest thereon and
      all
      fees and other obligations of the Borrower accrued hereunder and under the
      other
      Loan Documents, shall become due and payable immediately, without presentment,
      demand, protest or other notice of any kind, all of which are hereby waived
      by
      the Borrower; and in case of any event with respect to the Borrower described
      in
      clause (h) or (i) of this Article, the Commitments shall automatically terminate
      and the principal of the Loans then outstanding, together with accrued interest
      thereon and all fees and other obligations of the Borrower accrued hereunder
      and
      under the other Loan Documents, shall automatically become due
      and
      payable, without presentment, demand, protest or other notice of any kind,
      all
      of which are hereby waived by the Borrower.

     

    
      
         

        
        

      

      
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    ARTICLE
      VIII

     

    The
      Administrative Agent

     

    Each
      of
      the Lenders and the Issuing Banks hereby irrevocably appoints the Administrative
      Agent as its agent and authorizes the Administrative Agent to take such actions
      on its behalf and to exercise such powers as are delegated to the Administrative
      Agent by the terms hereof, together with such actions and powers as are
      reasonably incidental thereto.

     

    The
      bank
      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 such bank and its Affiliates
      may accept deposits from, lend money to and generally engage in any kind of
      business with the Borrower or any Subsidiary or other Affiliate thereof as
      if it
      were not the Administrative Agent hereunder.

     

    The
      Administrative Agent shall not have any duties or obligations except those
      expressly set forth herein. Without limiting the generality of the foregoing,
      (a) the Administrative Agent shall not be subject to any fiduciary or other
      implied duties, regardless of whether a Default has occurred and is continuing,
      (b) the Administrative Agent shall not have any duty to take any discretionary
      action or exercise any discretionary powers, except discretionary rights and
      powers expressly contemplated hereby that the Administrative Agent is required
      to exercise in writing as directed by the Required Lenders (or such other number
      or percentage of the Lenders as shall be necessary under the circumstances
      as
      provided in Section 9.02), and (c) except as expressly set forth herein, the
      Administrative Agent shall not have any duty to disclose, and shall not be
      liable for the failure to disclose, any information relating to the Borrower
      or
      any of its Subsidiaries that is communicated to or obtained by the bank serving
      as 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
      with the consent or at the request of the Required Lenders (or such other number
      or percentage of the Lenders as shall be necessary under the circumstances
      as
      provided in Section 9.02) or 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 written notice thereof is given to
      the
      Administrative Agent by the Borrower or a Lender, and 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, (ii) the contents of any certificate, report or other document
      delivered hereunder or in connection herewith, (iii) the performance or
      observance of any of the covenants, agreements or other terms or conditions
      set
      forth herein, (iv) the validity, enforceability, effectiveness or genuineness
      of
      this Agreement or any other agreement, instrument or document, or (v) the
      satisfaction of any condition set forth in Article IV or elsewhere herein,
      other
      than to confirm receipt of items expressly required to be delivered to the
      Administrative Agent.

     

    
      
         

        
        

      

      
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    The
      Administrative Agent shall be entitled to rely upon, and shall not incur any
      liability for relying upon, any notice, request, certificate, consent,
      statement, instrument, document or other writing believed by it to be genuine
      and to have been signed or sent by the proper Person. The Administrative Agent
      also may rely upon any statement made to it orally or by telephone and believed
      by it to be made by the proper Person, and shall not incur any liability for
      relying thereon. The Administrative Agent may consult with legal counsel (who
      may be counsel for the Borrower), independent accountants and other experts
      selected by 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.

     

    The
      Administrative Agent may perform any and all its duties and exercise its rights
      and powers 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 its duties and exercise its rights and powers through their
      respective Related Parties. The exculpatory provisions of the preceding
      paragraphs shall apply to any such sub-agent and to the Related Parties of
      the
      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.

     

    Subject
      to the appointment and acceptance of a successor Administrative Agent as
      provided in this paragraph, the Administrative Agent may resign at any time
      by
      notifying the Lenders, the Issuing Banks and the Borrower. Upon any such
      resignation, the Required Lenders shall have the right, in consultation with
      the
      Borrower, to appoint a successor. If no successor shall have been so appointed
      by the Required Lenders and shall have accepted such appointment within thirty
      (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 Issuing Banks, appoint a successor Administrative Agent which
      shall be a bank with an office in New York, New York, or an Affiliate of any
      such bank. Upon the acceptance of its appointment as Administrative Agent
      hereunder by a successor, such successor shall succeed to and become vested
      with
      all the rights, powers, privileges and duties of the retiring Administrative
      Agent, and the retiring Administrative Agent shall be discharged from its duties
      and obligations hereunder. 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
      Administrative Agent’s resignation hereunder, the provisions of this Article and
      Section 9.03 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 it
      was
      acting as Administrative Agent.

     

    Each
      Lender acknowledges that it has, independently and without reliance upon the
      Administrative Agent or any other Lender and based on such documents and
      information as it has deemed appropriate, made its own credit analysis and
      decision to enter into this Agreement. Each Lender also acknowledges that it
      will, independently and without reliance upon the Administrative Agent or any
      other Lender and based on such documents and information as it shall from time
      to time deem appropriate, continue to make its own decisions in taking or not
      taking action under or based upon this Agreement, any related agreement or
      any
      document furnished hereunder or thereunder.

     

    
      
         

        
        

      

      
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    None
      of
      the Lenders, if any, identified in this Agreement as a Syndication Agent or
      Documentation Agent shall have any right, power, obligation, liability,
      responsibility or duty under this Agreement other than those applicable to
      all
      Lenders as such. Without limiting the foregoing, none of such Lenders shall
      have
      or be deemed to have a fiduciary relationship with any Lender. Each Lender
      hereby makes the same acknowledgments with respect to the relevant Lenders
      in
      their capacity as Syndication Agents or Documentation Agents as it makes with
      respect to the Administrative Agent in the preceding paragraph.

     

    ARTICLE
      IX

     

    Miscellaneous

     

    SECTION
      9.01. Notices.
      (a)
      Except
      in the case of notices and other communications expressly permitted to be given
      by telephone (and subject to paragraph (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 facsimile, as follows:

     

    (i)
      if to
      the Borrower, to it at 555 Main Street, Suite 023, Racine, Wisconsin 53403,
      Attention of David Harrington (Facsimile No. 262-631-6608);

     

    (ii)
      if
      to the Administrative Agent, to JPMorgan Chase Bank, N.A., Loan and Operations,
      131 S. Dearborn Street, Chicago, IL 60670, Attention of Edna Guerra (Facsimile
      No. (312) 385-7090 and e-mail edna.guerra@jpmchase.com)
      with a
      copy to JPMorgan Chase Bank, N.A., 131 S. Dearborn Street, Chicago, IL 60670,
      Attention of Nathan Bloch (Facsimile No. (312) 325-3077 and e-mail address
      nathan.bloch@chase.com);

     

    (iii)
      if
      to an Issuing Bank, to it at (A) in the case of JPMorgan Chase Bank, N.A.,
      to it
      at JPMorgan Chase Bank, N.A., Loan and Operations, 131 S. Dearborn Street,
      Chicago, IL 60670, Attention of Edna Guerra (Facsimile No. (312) 385-7090 and
      e-mail edna.guerra@jpmchase.com)
      with a
      copy to JPMorgan Chase Bank, N.A., 131 S. Dearborn Street, Chicago, IL 60670,
      Attention of Nathan Bloch (Facsimile No. (312) 325-3077 and e-mail address
      nathan.bloch@chase.com), and (B) in the case of any other Issuing Bank, to
      it at
      the address and facsimile number specified from time to time by such Issuing
      Bank to the Borrower and the Administrative Agent;

     

    (iv)
      if
      to the Swingline Lender, to it at JPMorgan Chase Bank, N.A., Loan and
      Operations, 131 S. Dearborn Street, Chicago, IL 60670, Attention of Edna Guerra
      (Facsimile No. (312) 385-7090 and e-mail edna.guerra@jpmchase.com)
      with a
      copy to JPMorgan Chase Bank, N.A., 131 S. Dearborn Street, Chicago, IL 60670,
      Attention of Nathan Bloch (Facsimile No. (312) 325-3077 and e-mail address
      nathan.bloch@chase.com); and

     

    (v)
      if to
      any other Lender, to it at its address (or facsimile number) set forth in its
      Administrative Questionnaire.

     

    
      
         

        
        

      

      
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    (b)
      Notices and other communications to the Lenders hereunder may be delivered
      or
      furnished by electronic communications pursuant to procedures approved by the
      Administrative Agent; provided that the foregoing shall not apply to notices
      pursuant to Article II unless otherwise agreed by the Administrative Agent
      and
      the applicable Lender. 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.

     

    (c)
      Any
      party hereto may change its address or facsimile number for notices and other
      communications hereunder by notice to the other parties hereto. All notices
      and
      other communications given to any party hereto in accordance with the provisions
      of this Agreement shall be deemed to have been given on the date of
      receipt.

     

    SECTION
      9.02. Waivers;
      Amendments.
      (a)
      No
      failure or delay by the Administrative Agent, any Issuing Bank or any Lender
      in
      exercising any right or power hereunder or under any other Loan Document shall
      operate as a waiver thereof, nor shall any single or partial exercise of any
      such right or power, or any abandonment or discontinuance of steps to enforce
      such a right or power, preclude any other or further exercise thereof or the
      exercise of any other right or power. The rights and remedies of the
      Administrative Agent, the Issuing Banks and the Lenders hereunder and under
      any
      other Loan Document are cumulative and are not exclusive of any rights or
      remedies that they would otherwise have. No waiver of any provision of any
      Loan
      Document or consent to any departure by the Borrower therefrom shall in any
      event be effective unless the same shall be permitted by paragraph (b) of this
      Section, and then such waiver or consent shall be effective only in the specific
      instance and for the purpose for which given. Without limiting the generality
      of
      the foregoing, the making of a Loan or issuance of a Letter of Credit shall
      not
      be construed as a waiver of any Default, regardless of whether the
      Administrative Agent, any Lender or any Issuing Bank may have had notice or
      knowledge of such Default at the time.

     

    (b)
      Neither this Agreement nor any other Loan Document nor any provision hereof
      or
      thereof may be waived, amended or modified except pursuant to an agreement
      or
      agreements in writing entered into by the Borrower and the Required Lenders
      or
      by the Borrower and the Administrative Agent with the consent of the Required
      Lenders; provided
      that no
      such agreement shall (i) increase the Commitment of any Lender without the
      written consent of such Lender, (ii) reduce or forgive the principal amount
      of
      any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce
      or
      forgive any interest or fees payable hereunder, without the written consent
      of
      each Lender affected thereby, (iii) postpone the scheduled date of payment
      of
      the principal amount of any Loan or LC Disbursement, or any interest thereon,
      or
      any fees payable hereunder, or reduce the amount of, waive or excuse any such
      payment, or postpone the scheduled date of expiration of any Commitment, without
      the written consent of each Lender affected thereby, (iv) change Section 2.18(b)
      or (c) in a manner that would alter the pro rata sharing of payments required
      thereby, without the written consent of each Lender, (v) change any of the
      provisions of this Section or the definition of “Required Lenders” or any other
      provision hereof specifying the number or percentage of Lenders required to
      waive, amend or modify any rights hereunder or make any determination or grant
      any consent hereunder, without the written consent of each Lender or (vi)
      release any Subsidiary Guarantor from its obligation under
      the
      Subsidiary Guaranty (except as otherwise permitted herein or in the other Loan
      Documents) without the written consent of each Lender; provided further
      that no
      such agreement shall amend, modify or otherwise affect the rights or duties
      of
      the Administrative Agent, any Issuing Bank or the Swingline Lender hereunder
      without the prior written consent of the Administrative Agent, such Issuing
      Bank
      or the Swingline Lender, as the case may be.

     

    
      
         

        
        

      

      
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    SECTION
      9.03. Expenses;
      Indemnity; Damage Waiver.
      (a)
      The
      Borrower 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 the Administrative Agent, in connection with the
      syndication and distribution (including, without limitation, via the internet
      or
      through a service such as IntraLinks) of the credit facilities provided for
      herein, the preparation and administration of this Agreement or any amendments,
      modifications or waivers of the provisions hereof (whether or not the
      transactions contemplated hereby or thereby shall be consummated), (ii) all
      reasonable out-of-pocket expenses incurred by any Issuing Bank in connection
      with the issuance, amendment, renewal or extension of any Letter of Credit
      or
      any demand for payment thereunder and (iii) all reasonable out-of-pocket
      expenses incurred by the Administrative Agent, any Issuing Bank or any Lender,
      including the reasonable fees, charges and disbursements of any counsel for
      the
      Administrative Agent, any Issuing Bank or any Lender, in connection with the
      enforcement, collection or protection of its rights in connection with this
      Agreement, including its rights under this Section, or in connection with the
      Loans made or Letters of Credit issued hereunder, including all such reasonable
      out-of-pocket expenses incurred during any workout, restructuring or
      negotiations in respect of such Loans or Letters of Credit.

     

    (b)
      The
      Borrower shall indemnify the Administrative Agent, each Issuing Bank and each
      Lender, and each Related Party of any of the foregoing Persons (each such Person
      being called an “Indemnitee”)
      against, and hold each Indemnitee harmless from, any and all losses, claims,
      damages, penalties, liabilities and related expenses, including the fees,
      charges and disbursements of any counsel for any Indemnitee, incurred by or
      asserted against any Indemnitee arising out of, in connection with, or as a
      result of (i) the execution or delivery of this Agreement or any agreement
      or
      instrument contemplated hereby, the performance by the parties hereto of their
      respective obligations hereunder or the consummation of the Transactions or
      any
      other transactions contemplated hereby, (ii) any Loan or Letter of Credit or
      the
      use of the proceeds therefrom (including any refusal by any Issuing Bank 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 or release of Hazardous
      Materials on or from any property owned or operated by the Borrower or any
      of
      its Subsidiaries, or any Environmental Liability related in any way to the
      Borrower 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 and regardless of whether
      any Indemnitee is a party thereto; provided
      that
      such indemnity shall not, as to any Indemnitee, be available to the extent
      that
      such losses, claims, damages, penalties, liabilities or related expenses are
      determined by a court of competent jurisdiction by final and nonappealable
      judgment to have resulted from the gross negligence or willful misconduct of
      such Indemnitee.

     

    
      
         

        
        

      

      
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    (c)
      To
      the extent that the Borrower fails to pay any amount required to be paid by
      it
      to the Administrative Agent, any Issuing Bank or the Swingline Lender under
      paragraph (a) or (b) of this Section, each Lender severally agrees to pay to
      the
      Administrative Agent, any Issuing Bank or the Swingline Lender, 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, penalty, liability
      or
      related expense, as the case may be, was incurred by or asserted against the
      Administrative Agent, any Issuing Bank or the Swingline Lender in its capacity
      as such.

     

    (d)
      To
      the extent permitted by applicable law, the Borrower shall not assert, and
      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 or any agreement or instrument contemplated hereby, the Transactions,
      any Loan or Letter of Credit or the use of the proceeds thereof.

     

    (e)
      All
      amounts due under this Section shall be payable not later than fifteen (15)
      days
      after written demand therefor.

     

    SECTION
      9.04. Successors
      and Assigns.
      (a)
      The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the parties hereto and their respective successors and assigns permitted hereby
      (including any Affiliate of an Issuing Bank that issues any Letter of Credit),
      except that (i) the Borrower may not assign or otherwise transfer any of its
      rights or obligations hereunder without the prior written consent of each Lender
      (and any attempted assignment or transfer by the Borrower without such consent
      shall be null and void) and (ii) no Lender may assign or otherwise transfer
      its
      rights or obligations hereunder except in accordance with this Section. Nothing
      in this Agreement, expressed or implied, shall be construed to confer upon
      any
      Person (other than the parties hereto, their respective successors and assigns
      permitted hereby (including any Affiliate of any Issuing Bank that issues any
      Letter of Credit), Participants (to the extent provided in paragraph (c) of
      this
      Section) and, to the extent expressly contemplated hereby, the Related Parties
      of each of the Administrative Agent, the Issuing Banks and the Lenders) any
      legal or equitable right, remedy or claim under or by reason of this
      Agreement.

     

    (b)(i)
      Subject
      to the conditions set forth in paragraph (b)(ii) below, any Lender may assign
      to
      one or more assignees all or a portion of its rights and obligations under
      this
      Agreement (including all or a portion of its Commitment and the Loans at the
      time owing to it) with the prior written consent (such consent not to be
      unreasonably withheld) of:

     

    (A)
      the
      Borrower, provided
      that no
      consent of the Borrower shall be required for an assignment to a Lender, an
      Affiliate of a Lender, an Approved Fund or, if an Event of Default has occurred
      and is continuing, any other assignee; and

     

    (B)
      the
      Administrative Agent.

     

    
      
        
        

      

      
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    (ii)
      Assignments shall be subject to the following additional
      conditions:

     

    (A)
      except in the case of an assignment to a Lender or an Affiliate of a Lender
      or
      an assignment of the entire remaining amount of the assigning Lender’s
      Commitment or Loans of any Class, the amount of the Commitment or 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) shall not be less than $5,000,000 unless each of the
      Borrower and the Administrative Agent otherwise consent, provided
      that no
      such consent of the Borrower shall be required if an Event of Default has
      occurred and is continuing;

     

    (B)
      each
      partial assignment shall be made as an assignment of a proportionate part of
      all
      the assigning Lender’s rights and obligations under this Agreement, provided
      that this clause shall not be construed to prohibit the assignment of a
      proportionate part of all the assigning Lender’s rights and obligations in
      respect of one Class of Commitments or Loans;

     

    (C)
      the
      parties to each assignment shall execute and deliver to the Administrative
      Agent
      an Assignment and Assumption, together with a processing and recordation fee
      of
      $3,500; and

     

    (D)
      the
      assignee, if it shall not be a Lender, shall deliver to the Administrative
      Agent
      an Administrative Questionnaire.

     

    For
      the
      purposes of this Section 9.04(b), the term “Approved
      Fund”
has
      the
      following meaning:

     

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

     

    (iii)
      Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of
      this Section, from and after the effective date specified in each Assignment
      and
      Assumption the assignee thereunder shall be a party hereto 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
      2.15,
      2.16, 2.17 and 9.03). Any assignment or transfer by a Lender of rights or
      obligations under this Agreement that does not comply with this Section 9.04
      shall be treated for purposes of this Agreement as a sale by such Lender of
      a
      participation in such rights and obligations in accordance with paragraph (c)
      of
      this Section.

     

    
      
         

        
        

      

      
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    (iv)
      The
      Administrative Agent, acting for this purpose as an agent of the Borrower,
      shall
      maintain at one of its offices 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 Commitment of, and principal amount of the Loans and LC
      Disbursements 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, the Issuing Banks 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, any
      Issuing Bank and any Lender, at any reasonable time and from time to time upon
      reasonable prior notice.

     

    (v)
      Upon
      its receipt of a duly completed Assignment and Assumption executed by an
      assigning Lender and an assignee, the assignee’s completed Administrative
      Questionnaire (unless the assignee shall already be a Lender hereunder), the
      processing and recordation fee referred to in paragraph (b) of this Section
      and
      any written consent to such assignment required by paragraph (b) of this
      Section, the Administrative Agent shall accept such Assignment and Assumption
      and record the information contained therein in the Register; provided
      that if
      either the assigning Lender or the assignee shall have failed to make any
      payment required to be made by it pursuant to Section 2.05(c), 2.06(d) or (e),
      2.07(b), 2.18(d) or 9.03(c), the Administrative Agent shall have no obligation
      to accept such Assignment and Assumption and record the information therein
      in
      the Register unless and until such payment shall have been made in full,
      together with all accrued interest thereon. No assignment shall be effective
      for
      purposes of this Agreement unless it has been recorded in the Register as
      provided in this paragraph.

     

    (c) (i)
      Any
      Lender may, without the consent of the Borrower, the Administrative Agent,
      the
      Issuing Banks or the Swingline Lender, sell participations to one or more banks
      or other entities (a “Participant”)
      in all
      or a portion of such Lender’s rights and obligations under this Agreement
      (including all or a portion of its Commitment and the Loans owing to it);
      provided that (A) such Lender’s obligations under this Agreement shall remain
      unchanged, (B) such Lender shall remain solely responsible to the other parties
      hereto for the performance of such obligations and (C) the Borrower, the
      Administrative Agent, the Issuing Banks and the other Lenders shall continue
      to
      deal solely and directly with such Lender in connection with such Lender’s
      rights and obligations under this Agreement. Any agreement or instrument
      pursuant to which a Lender sells such a participation shall provide that such
      Lender shall retain the sole right to enforce this Agreement and to approve
      any
      amendment, modification or waiver of any provision of this Agreement;
provided
      that
      such agreement or instrument may provide that such Lender will not, without
      the
      consent of the Participant, agree to any amendment, modification or waiver
      described in the first proviso to Section 9.02(b) that affects such Participant.
      Subject to paragraph (c)(ii) of this Section, the Borrower agrees that each
      Participant shall be entitled to the benefits of Sections 2.15, 2.16 and 2.17
      to
      the same extent as if it were a Lender and had acquired its interest by
      assignment pursuant to paragraph (b) of this Section. To the extent permitted
      by
      law, each Participant also shall be entitled to the benefits of Section 9.08
      as
      though it were a Lender, provided such Participant agrees to be subject to
      Section 2.18(c) as though it were a Lender.

     

    (ii) A
      Participant shall not be entitled to receive any greater payment under Section
      2.15 or 2.17 than the applicable Lender would have been entitled to receive
      with
      respect to
      the
      participation sold to such Participant, unless the sale of the participation
      to
      such Participant is made with the Borrower’s prior written consent. A
      Participant that would be a Foreign Lender if it were a Lender shall not be
      entitled to the benefits of Section 2.17 unless the Borrower is notified of
      the
      participation sold to such Participant and such Participant agrees, for the
      benefit of the Borrower, to comply with Section 2.17(e) as though it were a
      Lender.

    
      
        
        

      

      
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    (d) Any
      Lender may at any time pledge or assign a security interest in all or any
      portion of its rights under this Agreement to secure obligations of such Lender,
      including without limitation any pledge or assignment to secure obligations
      to a
      Federal Reserve Bank, and this Section shall not apply to any such pledge or
      assignment of a security interest; provided that no such pledge or assignment
      of
      a security interest shall release a Lender from any of its obligations hereunder
      or substitute any such pledgee or assignee for such Lender as a party
      hereto.

     

    SECTION
      9.05. Survival.
      All
      covenants, agreements, representations and warranties made by the Borrower
      herein and in the certificates or other instruments delivered in connection
      with
      or pursuant to this Agreement shall be considered to have been relied upon
      by
      the other parties hereto and shall survive the execution and delivery of this
      Agreement and the making of any Loans and issuance of any Letters of Credit,
      regardless of any investigation made by any such other party or on its behalf
      and notwithstanding that the Administrative Agent, any Issuing Bank or any
      Lender may have had notice or knowledge of any Default or incorrect
      representation or warranty at the time any credit is extended hereunder, and
      shall continue in full force and effect as long as the principal of or any
      accrued interest on any Loan or any fee or any other amount payable under this
      Agreement is outstanding and unpaid or any Letter of Credit is outstanding
      and
      so long as the Commitments have not expired or terminated. The provisions of
      Sections 2.15, 2.16, 2.17 and 9.03 and Article VIII shall survive and remain
      in
      full force and effect regardless of the consummation of the transactions
      contemplated hereby, the repayment of the Loans, the expiration or termination
      of the Letters of Credit and the Commitments or the termination of this
      Agreement or any provision hereof.

     

    SECTION
      9.06. Counterparts;
      Integration; Effectiveness.
      This
      Agreement may be executed in counterparts (and by different parties hereto
      on
      different counterparts), each of which shall constitute an original, but all
      of
      which when taken together shall constitute a single contract. This Agreement
      and
      any separate letter agreements with respect to fees payable to the
      Administrative Agent 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 4.01, 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 which, when taken together, bear the
      signatures of each of the other parties hereto, and thereafter shall be binding
      upon and inure to the benefit of the parties hereto and their respective
      successors and assigns. Delivery of an executed counterpart of a signature
      page
      of this Agreement by facsimile shall be effective as delivery of a manually
      executed counterpart of this Agreement.

     

    SECTION
      9.07. Severability.
      Any
      provision of this Agreement held to be invalid, illegal or unenforceable in
      any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such invalidity, illegality or unenforceability without affecting the validity,
      legality and
      enforceability of the remaining provisions hereof; and the invalidity of a
      particular provision in a particular jurisdiction shall not invalidate such
      provision in any other jurisdiction.

     

    
      
         

        
        

      

      
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    SECTION
      9.08. Right
      of Setoff.
      If an
      Event of Default shall have occurred and be continuing, each Lender and each
      of
      its Affiliates is hereby authorized at any time and from time to time, to the
      fullest extent permitted by law, to set off and apply any and all deposits
      (general or special, time or demand, provisional or final) at any time held
      and
      other obligations at any time owing by such Lender or Affiliate to or for the
      credit or the account of the Borrower against any of and all the obligations
      of
      the Borrower now or hereafter existing under this Agreement held by such Lender,
      irrespective of whether or not such Lender shall have made any demand under
      this
      Agreement and although such obligations may be unmatured. The rights of each
      Lender under this Section are in addition to other rights and remedies
      (including other rights of setoff) which such Lender may have.

     

    SECTION
      9.09. Governing
      Law; Jurisdiction; Consent to Service of Process.
      (a)
      This
      Agreement shall be construed in accordance with and governed by the law of
      the
      State of Illinois.

     

    (b)
      The
      Borrower hereby irrevocably and unconditionally submits, for itself and its
      property, to the nonexclusive jurisdiction of any United States Federal or
      Illinois State Court sitting in Chicago, Illinois, and any appellate court
      from
      any thereof, in any action or proceeding arising out of or relating to this
      Agreement, or for recognition or enforcement of any judgment, and each of the
      parties hereto hereby irrevocably and unconditionally agrees that all claims
      in
      respect of any such action or proceeding may be heard and determined in such
      Illinois State or, to the extent permitted by law, in such Federal court. Each
      of the parties hereto agrees that a final judgment in any such action or
      proceeding shall be conclusive and may be enforced in other jurisdictions by
      suit on the judgment or in any other manner provided by law. Nothing in this
      Agreement shall affect any right that the Administrative Agent, any Issuing
      Bank
      or any Lender may otherwise have to bring any action or proceeding relating
      to
      this Agreement against the Borrower or its properties in the courts of any
      jurisdiction.

     

    (c)
      The
      Borrower hereby irrevocably and unconditionally waives, to the fullest extent
      it
      may legally and effectively do so, any objection which it may now or hereafter
      have to the laying of venue of any suit, action or proceeding arising out of
      or
      relating to this Agreement 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 law, the defense of an inconvenient forum to the maintenance
      of such action or proceeding in any such court.

     

    (d)
      Each
      party to this Agreement irrevocably consents to service of process in the manner
      provided for notices in Section 9.01. Nothing in this Agreement will affect
      the
      right of any party to this Agreement to serve process in any other manner
      permitted by law.

     

    SECTION
      9.10. WAIVER
      OF JURY TRIAL.
      EACH
      PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
      ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
      INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
      THE
      TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
      THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
      ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
      OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
      WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
      INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
      AND CERTIFICATIONS IN THIS SECTION.

     

    
      
        
        

      

      
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    SECTION
      9.11. Headings.
      Article
      and Section headings and the Table of Contents used herein are for convenience
      of reference only, are not part of this Agreement and shall not affect the
      construction of, or be taken into consideration in interpreting, this
      Agreement.

     

    SECTION
      9.12. Confidentiality.
      Each of
      the Administrative Agent, the Issuing Banks and the Lenders agrees to maintain
      the confidentiality of the Information (as defined below), except that
      Information may be disclosed (a) to its and its Affiliates’ directors, officers,
      employees and agents, including accountants, legal counsel and other advisors
      (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, (c) to the extent required by applicable laws or regulations or
      by
      any subpoena or similar legal process, (d) to any other party to this Agreement,
      (e) in connection with the exercise of any remedies hereunder or any suit,
      action or proceeding relating to this Agreement or the enforcement of rights
      hereunder, (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 the Borrower and
      its
      obligations, (g) with the consent of the Borrower or (h) to the extent such
      Information (i) becomes publicly available other than as a result of a breach
      of
      this Section or (ii) becomes available to the Administrative Agent, any Issuing
      Bank or any Lender on a nonconfidential basis from a source other than the
      Borrower. For the purposes of this Section, “Information”
means
      all information received from the Borrower relating to the Borrower or its
      business, other than any such information that is available to the
      Administrative Agent, any Issuing Bank or any Lender on a nonconfidential basis
      prior to disclosure by the Borrower; provided
      that, in
      the case of information received from the Borrower 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.

     

    SECTION
      9.13. USA
      PATRIOT Act.
      Each
      Lender that is subject to the requirements of the USA Patriot Act (Title III
      of
      Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”) hereby notifies
      the Borrower that pursuant to the requirements of 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 to identify the Borrower in accordance with the
      Act.

     

    [Signature
      Pages Follow]

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed by their respective authorized officers as of the day and year first
      above written.

    

    
      	
               JOHNSON
                OUTDOORS
                INC.

            
	
               

            
	
               

            
	
              By
                /s/ David W.
                Johnson           
                                                  
                

            
	
               

            	
              Name: 
                David W. Johnson

            
	
               

            	
              Title:   
                Treasurer

            
	
               

            
	
               

            
	
              JPMORGAN
                CHASE BANK, N.A., individually 

              as
                a Lender, as the Swingline Lender, as an Issuing 

              Bank
                and as Administrative Agent

            
	
               

            
	
               

            
	
              By 
                /s/ Sabir
                Hashmy                                                     
                 

            
	
               

            	
              Name: 
                Sabir Hashmy

            
	
               

            	
              Title:   
                Vice President

            
	
               

            
	
               

            
	
              LASALLE
                BANK NATIONAL ASSOCIATION, 

              as
                a Lender and an Issuing Bank

            
	
               

            
	
               

            
	
              By 
                /s/ Lou D.
                Branch                                                    
                

            
	
               

            	
              Name: 
                Lou D. Branch

            
	
               

            	
              Title:   
                Senior Vice President & Sr. Banker

            
	
               

            	
               

            
	
               

            	
               

            
	
              M&I
                MARSHALL & ILSLEY BANK,

              as
                a Lender

            
	
               

            
	
               

            
	
              By 
                /s/ Ronald J.
                Carey                                               
                

            
	
              Name: 
                Ronald J. Carey

            
	
              Title:   
                Vice President

            
	
               

            
	
              By 
                /s/ James R.
                Miller                                 
                             
                

            
	
               Name: 
                James R. Miller

            
	
               Title:   
                Vice President

            
	 
	
               

            
	
              WELLS
                FARGO BANK, N.A., as a Lender

            
	
               

            
	
               

            
	
              By 
                /s/ Paul J.
                Hennessey                                         
                

            
	
              Name: 
                Paul J. Hennessy

            
	
              Title:   
                Vice President

            

    

     

     

    Signature
      Page to Credit Agreement

    Johnson
      Outdoors Inc.

    
      
         

        
        

      

      
        71

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      2.01

     

    COMMITMENTS

     

    
      	
              LENDER

            	
              COMMITMENT

            
	 	 
	
              JPMORGAN
                CHASE BANK, N.A.

            	
              $20,000,001

            
	 	 
	
              LASALLE
                BANK NATIONAL ASSOCIATION

            	
              $18,333,333

            
	 	 
	
              M&I
                MARSHALL & ILSLEY BANK

            	
              $18,333,333

            
	 	 
	
              WELLS
                FARGO BANK, N.A.

            	
              $18,333,333

            
	 	 
	
              TOTAL
                COMMITMENTS

            	
              $75,000,000

            

    

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    ASSIGNMENT
      AND ASSUMPTION

     

    This
      Assignment and Assumption (the “Assignment
      and
Assumption”)
      is
      dated as of the Effective Date set forth below and is entered into by and
      between [Insert
      name of Assignor]
      (the
“Assignor”)
      and
[Insert
      name of Assignee]
      (the
“Assignee”).
      Capitalized terms used but not defined herein shall have the meanings given
      to
      them in the Credit Agreement identified below (as amended, 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 Assignor hereby irrevocably sells and assigns to
      the
      Assignee, and the Assignee hereby irrevocably purchases and assumes from the
      Assignor, 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 rights and
      obligations in its capacity as a Lender 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 under the respective facilities
      identified below (including any letters of credit, guarantees, and swingline
      loans included in such facilities) 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) 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 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 pursuant to clauses (i) and (ii) above being
      referred to herein collectively as the “Assigned
      Interest”).
      Such
      sale and assignment is without recourse to the Assignor and, except as expressly
      provided in this Assignment and Assumption, without representation or warranty
      by the Assignor.

     

    
      	
              1.

            	
              Assignor:

            	_______________________________________________________
	 	 	 
	
              2.

            	
              Assignee:

            	_______________________________________________________
	 	 	
                
                [and
                is an Affiliate/Approved Fund of [identify
                Lender]1 ]

            
	 	 	 
	
              3.

            	
              Borrower(s):

            	Johnson
              Outdoors
              Inc.                                                           
	 	 	 
	
              4.

            	
              Administrative
                Agent:

            	
              JPMorgan
                Chase Bank, N.A., as the administrative agent under the Credit
                Agreement

            
	 	 	 
	
              5.

            	
              Credit
                Agreement:

            	
              The
                $75,000,000 Credit Agreement dated as of October [__],
                2005 among Johnson Outdoors Inc., the Lenders parties thereto, JPMorgan
                Chase Bank, N.A., as Administrative Agent, and the other agents parties
                thereto

               

               

            
	 ____________________
	 1Select
              as applicable.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      6. Assigned
        Interest:

       

    

    
      	
              Aggregate
                Amount of Commitment/Loans for all Lenders

            	
              Amount
                of Commitment/Loans
                Assigned

            	
              Percentage
                Assigned of Commitment/Loans2 

            
	
                          $________________

            	
                      $________________

            	
              ________%

            	 
	
                          $__________________

            	
                      $________________

            	
              ________%

            	 
	
                          $__________________

            	
                      $________________

            	
              ________%

            	 
	 	 	 

    

    Effective
      Date: _____________ ___, 20___ [TO
      BE
      INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF
      RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

     

    The
      terms
      set forth in this Assignment and Assumption are hereby agreed to:

     

    
      	 	
              ASSIGNOR

            
	 	 
	 	
              [NAME
                OF ASSIGNOR]

            
	 	 
	 	
              By:________________________________________________

            
	 	 	
              Title:

            
	 	 
	 	
              ASSIGNEE

            
	 	 
	 	
              [NAME
                OF ASSIGNEE]

            
	 	 
	 	
              By:________________________________________________

            
	 	 	
              Title:

            
	 	 
	 	 

    

    

     

    
      	
              Consented
                to and Accepted:

            	 
	 	 
	
              JPMORGAN
                CHASE BANK, N.A., as   Administrative Agent

            	 
	 	 
	
              By:

            	 	 	 
	
              Title:

            	 	 
	 	 
	
              [Consented
                to:]3 

            	 
	 	 
	
              JOHNSON
                OUTDOORS INC.

            	 
	 	 
	
              By:

            	 	 	 
	
              Title:

            	 	 
	 	 
	__________________________	 
	
              2
                Set forth, so at least 9 decimals, as a percentage of the Commitment/Loans
                of all Lenders thereunder.

              3
                To be added only if the consent of the Borrower is required by the
                terms
                of the Credit Agreement.

               

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    ANNEX
      I

     

    STANDARD
      TERMS AND CONDITIONS FOR

     

    ASSIGNMENT
      AND ASSUMPTION

     

    1.
      Representations
      and Warranties.

     

    1.1
      Assignor.
      The
      Assignor (a) represents and warrants that (i) it is the legal and beneficial
      owner of the Assigned Interest, (ii) the 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
      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 satisfies the requirements, if
      any,
      specified in the Credit Agreement that are required to be satisfied by it in
      order to acquire the Assigned Interest and become a Lender, (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 Assigned Interest, shall have
      the obligations of a Lender thereunder, (iv) it has received a copy of the
      Credit Agreement, together with copies of the most recent financial statements
      delivered pursuant to Section 5.01 thereof, as applicable, and such other
      documents and information as it has deemed appropriate to make its own credit
      analysis and decision to enter into this Assignment and Assumption and to
      purchase the Assigned Interest on the basis of which it has made such analysis
      and decision independently and without reliance on the Administrative Agent
      or
      any other Lender, and (v) if it is a Foreign Lender, attached to the Assignment
      and Assumption is any documentation required to be delivered by it pursuant
      to
      the terms of the Credit Agreement, duly completed and executed by the Assignee;
      and (b) agrees that (i) it will, independently and without reliance on the
      Administrative Agent, the 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 Assigned Interest (including payments of principal, interest,
      fees and other amounts) to the Assignor for amounts which have accrued to but
      excluding the Effective
      Date and to the 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 facsimile 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 Illinois.

     

    

     

    
      
         

        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

     

    OPINION
      OF COUNSEL FOR THE LOAN PARTIES

     

    [Effective
      Date]

     

    To
      the
      Lenders and the Administrative

    Agent
      Referred to Below

    c/o
      JPMorgan Chase Bank, N.A. as

    Administrative
      Agent

    Loan
      and
      Operations

    131
      S.
      Dearborn Street

    Chicago,
      IL 60670

     

    Dear
      Sirs:

     

    We
      have
      acted as counsel for Johnson Outdoors Inc., a Wisconsin corporation (the
“Borrower”) and [DESCRIBE
      SUBSIDIARY GUARANTORS]
      (collectively with the Borrower, the “Loan
      Parties”),
      in
      connection with (i) the Credit Agreement dated as of October [7],
      2005
      (the “Credit
      Agreement”),
      among
      the Borrower, the banks and other financial institutions identified therein
      as
      Lenders, and JPMorgan Chase Bank, N.A., as Administrative Agent and (ii)
[DESCRIBE
      OTHER LOAN DOCUMENTS]
      (collectively with the Credit Agreement, the “Loan
      Documents”).
      Terms
      defined in the Credit Agreement are used herein with the same
      meanings.

     

    We
      have
      examined originals or copies, certified or otherwise identified to our
      satisfaction, of such documents, corporate records, certificates of public
      officials and other instruments and have conducted such other investigations
      of
      fact and law as we have deemed necessary or advisable for purposes of this
      opinion.

     

    Upon
      the
      basis of the foregoing, we are of the opinion that:

     

    1. Each
      Loan
      Party (a) is a [_______]
      duly
      organized, validly existing and in good standing under the laws of the State
      of
[________],
      (b) has
      all requisite power and authority to carry on its business as now conducted
      and
      (c) except where the failure to do so, individually or in the aggregate, could
      not reasonably be expected to result in a Material Adverse Effect, is qualified
      to do business in, and is in good standing in, every jurisdiction where such
      qualification is required.

     

    2. The
      Transactions are within each Loan Party’s corporate/limited liability company
      powers and have been duly authorized by all necessary corporate/company and,
      if
      required, stockholder or other equityholder action. Each Loan Document has
      been
      duly executed and delivered by each Loan Party thereto and constitutes a legal,
      valid and binding obligation of such Loan Party, enforceable in accordance
      with
      its terms, subject to applicable bankruptcy, insolvency, reorganization,
      moratorium or other laws affecting creditors’ rights generally and subject to
      general principles of equity, regardless of whether considered in a proceeding
      in equity or at law.

     

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3. The
      Transactions (a) do not require any consent or approval of, registration or
      filing with, or any other action by, any Governmental Authority, except such
      as
      have been obtained or made and are in full force and effect, (b) will not
      violate any applicable law or regulation or the charter, by-laws or other
      organizational documents of any Loan Party or any of its Subsidiaries or any
      order of any Governmental Authority, (c) will not violate or result in a default
      under any indenture, agreement or other instrument binding upon any Loan Party
      or any of its Subsidiaries or its assets, or give rise to a right thereunder
      to
      require any payment to be made by or any of its Subsidiaries, and (d) will
      not
      result in the creation or imposition of any Lien on any asset of any Loan Party
      or any of its Subsidiaries.

     

    4. There
      are
      no actions, suits or proceedings by or before any arbitrator or Governmental
      Authority pending against or, to our knowledge, threatened against or affecting
      any Loan Party or any of its Subsidiaries (a) 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 have a Material
      Adverse Effect or (b) that involve any Loan Document or the
      Transactions.

     

    5. None
      of
      the Loan Parties is (a) an “investment company” as defined in, or subject to
      regulation under, the Investment Company Act of 1940 or (b) a “holding company”
as defined in, or subject to regulation under, the Public Utility Holding
      Company Act of 1935.

     

    We
      are
      members of the bar of the States of Wisconsin and Illinois and the foregoing
      opinion is limited to the laws of the States of Wisconsin and Illinois, the
      General Corporation Law of the State of Delaware and the Federal laws of the
      United States of America. This opinion is rendered solely to you in connection
      with the above matter. This opinion may not be relied upon by you for any other
      purpose or relied upon by any other Person (other than your successors and
      assigns as Lenders and Persons that acquire participations in your Loans)
      without our prior written consent.

     

    
      	 	
              Very
                truly yours,

            
	 	 
	 	 
	 	
              [                                                                                     
                ]

            

    

    

    
      
         

        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

     

    FORM
      OF
      INCREASING LENDER SUPPLEMENT

     

    INCREASING
      LENDER SUPPLEMENT, dated __________, 20___ (this “Supplement”),
      by
      and among each of the signatories hereto, to the Credit Agreement, dated as
      of
      October ___, 2005 (as amended, restated, supplemented or otherwise modified
      from
      time to time, the “Credit
      Agreement”),
      among
      Johnson Outdoors Inc. (the “Borrower”),
      the
      Lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent
      (in
      such capacity, the “Administrative
      Agent”).

     

    W
      I T N E
      S S E T H

     

    WHEREAS,
      pursuant to Section
      2.20
      of the
      Credit Agreement, the Borrower has the right, subject to the terms and
      conditions thereof, to effectuate from time to time an increase in the aggregate
      Commitments under the Credit Agreement by requesting one or more Lenders to
      increase the amount of its Commitment;

     

    WHEREAS,
      the Borrower has given notice to the Administrative Agent of its intention
      to
      increase the aggregate Commitments pursuant to such Section
      2.20;
      and

     

    WHEREAS,
      pursuant to Section
      2.20
      of the
      Credit Agreement, the undersigned Increasing Lender now desires to increase
      the
      amount of its Commitment under the Credit Agreement by executing and delivering
      to the Borrower and the Administrative Agent this Supplement;

     

    NOW,
      THEREFORE, each of the parties hereto hereby agrees as follows:

     

    1.
      The
      undersigned Increasing Lender agrees, subject to the terms and conditions of
      the
      Credit Agreement, that on the date of this Supplement it shall have its
      Commitment increased by $[__________], thereby making the aggregate amount
      of
      its total Commitments equal to $[__________].

     

    2.
      The
      Borrower hereby represents and warrants that no Default or Event of Default
      has
      occurred and is continuing on and as of the date hereof.

     

    3.
      Terms
      defined in the Credit Agreement shall have their defined meanings when used
      herein.

     

    4.
      This
      Supplement shall be governed by, and construed in accordance with, the laws
      of
      the State of Illinois.

     

    5.
      This
      Supplement may be executed in any number of counterparts and by different
      parties hereto in separate counterparts, each of which when so executed shall
      be
      deemed to be an original and all of which taken together shall constitute one
      and the same document.

     

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, each of the undersigned has caused this Supplement to be
      executed and delivered by a duly authorized officer on the date first above
      written.

     

                [INSERT
      NAME OF
      INCREASING LENDER]

    

    

                By:____________________________________

                Name:

                Title:

    

    

    Accepted
      and agreed to as of the date first written above:

    

    JOHNSON
      OUTDOORS INC.

    

    

    By:______________________________________

    Name:

    Title:

    

    

    Acknowledged
      as of the date first written above:

    

    JPMORGAN
      CHASE BANK, N.A.

    as
      Administrative Agent

    

    

    By:______________________________________

    Name:

    Title:

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

     

    FORM
      OF
      AUGMENTING LENDER SUPPLEMENT

    

    AUGMENTING
      LENDER SUPPLEMENT, dated __________, 20___ (this “Supplement”),
      to
      the Credit Agreement, dated as of October ___, 2005 (as amended, restated,
      supplemented or otherwise modified from time to time, the “Credit
      Agreement”),
      among
      Johnson Outdoors Inc. (the “Borrower”),
      the
      Lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent
      (in
      such capacity, the “Administrative
      Agent”).

     

    W
      I T N E
      S S E T H

     

    WHEREAS,
      the Credit Agreement provides in Section
      2.20
      thereof
      that any bank, financial institution or other entity selected by the
      Administrative Agent in consultation with the Borrower may extend Commitments
      under the Credit Agreement, by executing and delivering to the Borrower and
      the
      Administrative Agent a supplement to the Credit Agreement in substantially
      the
      form of this Supplement; and

     

    WHEREAS,
      the undersigned Augmenting Lender was not an original party to the Agreement
      but
      now desires to become a party thereto;

     

    NOW,
      THEREFORE, each of the parties hereto hereby agrees as follows:

     

    1.
      The
      undersigned Augmenting Lender agrees to be bound by the provisions of the Credit
      Agreement and agrees that it shall, on the date of this Supplement, become
      a
      Lender for all purposes of the Credit Agreement to the same extent as if
      originally a party thereto, with a Commitment of $[__________].

     

    2.
      The
      undersigned Augmenting Lender (a) represents and warrants that it has full
      power
      and authority, and has taken all action necessary, to execute and deliver this
      Supplement and to consummate the transactions contemplated hereby and by the
      Credit Agreement and to become a Lender under the Credit Agreement; (b) confirms
      that it has received a copy of the Credit Agreement, together with copies of
      the
      most recent financial statements delivered pursuant to Section
      5.01
      thereof,
      as applicable, and has reviewed such other documents and information as it
      has
      deemed appropriate to make its own credit analysis and decision to enter into
      this Supplement; (c) agrees that it will, independently and without reliance
      upon the Administrative Agent or any other Lender and based on such documents
      and information as it shall deem appropriate at the time, continue to make
      its
      own credit decisions in taking or not taking action under the Credit Agreement
      or any other instrument or document furnished pursuant hereto or thereto; (d)
      appoints and authorizes the Administrative Agent to take such action as agent
      on
      its behalf and to exercise such powers and discretion under the Credit Agreement
      or any other instrument or document furnished pursuant hereto or thereto as
      are
      delegated to the Administrative Agent by the terms thereof, together with such
      powers as are incidental thereto; (e) agrees that it will be bound by the
      provisions of the Credit Agreement and will perform in accordance with its
      terms
      all the obligations which by the terms of the Credit Agreement are required
      to
      be performed by it as a Lender; and (f) if it is a Foreign Lender, attached
      to this Supplement is any documentation required to be delivered by it pursuant
      to the terms of the Credit Agreement, duly completed and executed by the
      undersigned.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.
      The
      undersigned’s address for notices for the purposes of the Credit Agreement is as
      follows:

     

    [___________]

     

    4.
      The
      Borrower hereby represents and warrants that no Default or Event of Default
      has
      occurred and is continuing on and as of the date hereof.

     

    5.
      Terms
      defined in the Credit Agreement shall have their defined meanings when used
      herein.

     

    6.
      This
      Supplement shall be governed by, and construed in accordance with, the laws
      of
      the State of Illinois.

     

    7.
      This
      Supplement may be executed in any number of counterparts and by different
      parties hereto in separate counterparts, each of which when so executed shall
      be
      deemed to be an original and all of which taken together shall constitute one
      and the same document.

     

    [remainder
      of this page intentionally left blank]

     

    
      
         

        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, each of the undersigned has caused this Supplement to be
      executed and delivered by a duly authorized officer on the date first above
      written.

     

                [INSERT
      NAME OF
      AUGMENTING LENDER]

    

    

                By:_______________________________________
             

                Name:

                Title:

    

    

    Accepted
      and agreed to as of the date first written above:

    

    JOHNSON
      OUTDOORS INC.

    

    

    By:_____________________________________

    Name:

    Title:

    

    

    Acknowledged
      as of the date first written above:

    

    JPMORGAN
      CHASE BANK, N.A.

    as
      Administrative Agent

    

    

    By:_____________________________________

    Name:

    Title:

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E

     

    LIST
      OF
      CLOSING DOCUMENTS

    

     

    Attached.Exhibit 10.49

 

 

	
   

  	
   

  	
  AmCOMP
  Incorporated

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  Reinsurance
  Placement

  	
   

  
	
   

  	
  Effective:
  January 1, 2006

  	
   

  
	
   

  	
  Confirmation Contract Wording

  	
   

  
	
   

  	
   

  	
   

  

 

Attached is the following Confirmation contract wording for your
review.

 

Excess Workers’ Compensation Contract

 

Brokerage

 

10% of gross reinsurance premium to Benfield Inc; additional 5% of
gross reinsurance premium to Benfield UK as respects shares placed by Benfield
UK in London-based Lloyds’ Syndicates or Other London Companies.   5% on reinstatement premium to Benfield Inc;
nil on reinstatement as respects shares placed by Benfield  UK in London-based Lloyds’ Syndicates or
Other London Companies.

 

Allocation of Final Shares

 

The Company shall have the right to review all the authorizations and
the full authority to allocate final shares. Such decisions will be at the sole
discretion of the Company and may result in other than a “propositional
signdown” of authorizations. As respects signdowns within the London
marketplace, the final allocation of shares to individual companies or
syndicates may not be proportionate to the original authorizations.

 

 

 

Excess
Workers’ Compensation

Reinsurance
Contract

Effective:  January 1, 2006

 

issued to

 

AmCOMP Preferred Insurance Company

North Palm Beach, Florida

AmCOMP Assurance Corporation

North Palm Beach, Florida

and

any and all insurance companies which are now or

hereafter come under the same ownership or management as the

AmCOMP Group

North Palm Beach, Florida

 

 

Table of Contents

 

	
  Article

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  I

  	
   

  	
  Classes of Business Reinsured

  	
  1

  
	
  II

  	
   

  	
  Commencement and Termination

  	
  1

  
	
  III

  	
   

  	
  Special Termination

  	
  2

  
	
  IV

  	
   

  	
  Territory (BRMA 51A)

  	
  3

  
	
  V

  	
   

  	
  Exclusions

  	
  3

  
	
  VI

  	
   

  	
  Retention and Limit

  	
  7

  
	
  VII

  	
   

  	
  Reinstatement

  	
  7

  
	
  VIII

  	
   

  	
  Definitions

  	
  8

  
	
  IX

  	
   

  	
  Other Reinsurance

  	
  11

  
	
  X

  	
   

  	
  Federal Terrorism Recovery

  	
  11

  
	
  XI

  	
   

  	
  Annuities at Company’s Option

  	
  12

  
	
  XII

  	
   

  	
  Reports to the Reinsurer

  	
  12

  
	
  XIII

  	
   

  	
  Special Commutation

  	
  13

  
	
  XIV

  	
   

  	
  Salvage and Subrogation

  	
  14

  
	
  XV

  	
   

  	
  Premium

  	
  15

  
	
  XVI

  	
   

  	
  Late Payments

  	
  16

  
	
  XVII

  	
   

  	
  Offset and Security

  	
  17

  
	
  XVIII

  	
   

  	
  Access to Records (BRMA 1D)

  	
  18

  
	
  XIX

  	
   

  	
  Liability of the Reinsurer

  	
  18

  
	
  XX

  	
   

  	
  Net Retained Lines (BRMA 32E)

  	
  18

  
	
  XXI

  	
   

  	
  Errors and Omissions (BRMA 14F)

  	
  18

  
	
  XXII

  	
   

  	
  Currency (BRMA 12A)

  	
  19

  
	
  XXIII

  	
   

  	
  Taxes (BRMA 50B)

  	
  19

  
	
  XXIV

  	
   

  	
  Federal Excise Tax

  	
  19

  
	
  XXV

  	
   

  	
  Reserves

  	
  19

  
	
  XXVI

  	
   

  	
  Insolvency

  	
  21

  
	
  XXVII

  	
   

  	
  Arbitration

  	
  22

  
	
  XXVIII

  	
   

  	
  Service of Suit (BRMA 49C)

  	
  23

  
	
  XXIX

  	
   

  	
  Material Changes

  	
  23

  
	
  XXX

  	
   

  	
  Agency Agreement

  	
  23

  
	
  XXXI

  	
   

  	
  Governing Law (BRMA 71B)

  	
  24

  
	
  XXXII

  	
   

  	
  Intermediary (BRMA 23A)

  	
  24

  
	
   

  	
   

  	
  Schedule A

  	
   

  

 

 

Excess
Workers’ Compensation

Reinsurance
Contract

Effective:  January 1, 2006

 

issued to

 

AmCOMP Preferred Insurance Company

North Palm Beach, Florida

AmCOMP Assurance Corporation

North Palm Beach, Florida

and

any and all insurance companies which are now or

hereafter come under the same ownership or management as the

AmCOMP Group

North Palm Beach, Florida

(hereinafter
referred to collectively as the “Company”)

 

by

 

The Subscribing Reinsurer(s) Executing the

Interests and Liabilities Agreement(s)

Attached Hereto

(hereinafter
referred to as the “Reinsurer”)

 

Article I - Classes of Business
Reinsured

 

By this Contract the Reinsurer agrees to reinsure the excess liability
which may accrue to the Company under its policies, contracts and binders of
insurance or reinsurance (hereinafter called “policies”) issued or renewed on
or after the effective date hereof, and classified by the Company as Workers’
Compensation and Employers Liability business, subject to the terms, conditions
and limitations set forth herein and in Schedule A attached to and forming part
of this Contract.

 

Article II - Commencement
and Termination

 

A.           This Contract shall
become effective at 12:01 a.m., Eastern Standard Time, January 1, 2006,
with respect to losses arising out of occurrences commencing on or after that
date, and shall continue in force thereafter until terminated.

 

B.             Either party may
terminate this Contract on any December 31 by giving the other party not
less than 90 days prior notice by certified mail.

 

C.             Unless the Company
elects that the Reinsurer have no liability for losses arising out of occurrences
commencing after the effective date of termination, and so notifies the
Reinsurer prior to or as promptly as possible after the effective date of
termination, reinsurance hereunder on business in force on the effective date
of termination shall remain in full force and effect until expiration,
cancellation or next premium anniversary of such 

 

1

 

business, whichever first
occurs, but in no event beyond 12 months, plus odd time (not to exceed
18 months in all), following the effective date of termination.

 

D.            Notwithstanding the
provisions above, in the event that any policy subject to this Contract is
required by statute, regulation or by order of an insurance department to be
continued in force, the Reinsurer agrees to extend reinsurance coverage
hereunder following the termination of this Contract with respect to such
policy until the first date that the Company may lawfully non-renew, cancel or
terminate such policy, whether or not the Company actually does non-renew,
cancel or terminate such policy. 
However, under no circumstances shall runoff coverage under this
paragraph exceed 23 months.

 

E.              “Contract year” as
used herein shall mean the period from January 1, 2006 through December 31, 2006,
and each subsequent 12-month period (or portion thereof) thereafter that this
Contract continues in force shall be a separate contract year.  If this Contract is terminated on a “runoff”
basis, the period from the effective date of termination through the end of the
“runoff” period shall be a separate contract year and referred to as the “runoff
contract year.”

 

Article III - Special
Termination

 

A.           Notwithstanding the
provisions of paragraph B of the Commencement and Termination Article,
either party may terminate this Contract at any time by giving the other party
not less than 30 days prior written notice in the event any of the
following circumstances occur (if terminated by either party, said termination
shall be on a “runoff” basis unless the Company elects to have such termination
on a “cutoff” basis; however, termination shall be on a cutoff basis if the
Reinsurer terminates because the Company has failed to pay premium):

 

1.               The other party’s
policyholders’ surplus at the beginning of any contract year has been reduced
by more than 25.0% of the amount of surplus 12 months prior to that date;
or

 

2.               The other party’s policyholders’
surplus at any time during any contract year has been reduced by more than 25.0%
of the amount of surplus at the date of the other party’s most recent financial
statement filed with regulatory authorities and available to the public as of
the beginning of the contract year; or

 

3.               The other party has
become merged with, acquired by or controlled by any other company, corporation
or individual(s) not controlling said party’s operations previously; however,
this subparagraph shall not apply to the sale of stock to a non-acquiring
entity; or

 

4.               51.0% or more of
the Company or its portfolio is purchased or sold; or

 

5.               The State Insurance
Department or other legal authority in the other party’s state of domicile has
ordered the other party to cease writing business; or

 

6.               The other party has
become insolvent or has been placed into liquidation or receivership (whether
voluntary or involuntary) or proceedings have been instituted against the other
party for the appointment of a receiver, liquidator, rehabilitator, 

 

2

 

conservator or
trustee in bankruptcy, or other agent known by whatever name, to take
possession of its assets or control of its operations; or

 

7.               The other party has
ceased writing new and renewal property and casualty business; or

 

8.               The Company has
failed to pay reinsurance premiums in accordance with this Contract; or

 

9.               A material change
has occurred in any two of the Company’s three senior officers (i.e., the
Chief Executive Officer, the President, or the Chief Financial Officer).

 

B.             Notwithstanding the
provisions of paragraph B of the Commencement and Termination Article, the
Company may terminate a Subscribing Reinsurer’s percentage share in this
Contract by giving not less than 30 days prior written notice to the
Subscribing Reinsurer in the event the Subscribing Reinsurer’s A.M. Best’s
rating has been assigned or downgraded below A- (includes any “Not Rated”
rating) and/or Standard & Poor’s rating has been assigned or
downgraded below BBB+.

 

Article IV - Territory (BRMA
51A)

 

The territorial limits of this Contract shall be identical with those
of the Company’s policies.

 

Article V - Exclusions

 

A.           This Contract does not
apply to and specifically excludes the following:

 

1.               Reinsurance assumed
by the Company under obligatory reinsurance agreements, except:

 

a.             Agency reinsurance
where the policies involved are to be reunderwritten in accordance with the
underwriting standards of the Company and reissued as Company policies at the
next anniversary or expiration date;

 

b.              Intercompany
reinsurance between any of the reinsured companies under this Contract.

 

2.               Ex-gratia payments.

 

3.               Risks subject to a
deductible in excess of $25,000, or a self-insured retention excess of $25,000,
unless such deductible or self-insured retention is otherwise mandated by
statute or regulatory authority.

 

4.               Nuclear risks as
defined in the “Nuclear Incident Exclusion Clause - Liability -
Reinsurance (U.S.A.)” and loss or liability defined in the “Nuclear Incident
Exclusion Clause - Reinsurance - No. 4” attached to and forming part of
this Contract.

 

3

 

5.               Pollution liability
coverages excluded under the provisions of the “Pollution Exclusion Clause -
General Liability - Reinsurance (BRMA 39C)” attached to and forming part
of this Contract.

 

6.               Liability as a
member, subscriber or reinsurer of any Pool, Syndicate or Association, but this
exclusion shall not apply to Assigned Risk Plans or similar state-mandated
plans.

 

7.               All liability of
the Company arising by contract, operation of law, or otherwise, from its
participation or membership, whether voluntary or involuntary, in any
insolvency fund.  “Insolvency fund”
includes any guaranty fund, insolvency fund, plan, pool, association, fund or
other arrangement, however denominated, established or governed, which provides
for any assessment of or payment or assumption by the Company of part or all of
any claim, debt, charge, fee or other obligation of an insurer, or its
successors or assigns, which has been declared by any competent authority to be
insolvent, or which is otherwise deemed unable to meet any claim, debt, charge,
fee or other obligation in whole or in part.

 

8.               Loss or liability
as excluded in the “War Risk Exclusion Clause (Reinsurance)” attached to and
forming part of this Contract.

 

9.               Operation under the
jurisdiction of the United States Longshore and Harbor Workers’ Compensation
Act or the Jones Act, except for incidental exposures (i.e., 10.0% or less of
the insured’s estimated payroll when the account is quoted).

 

10.         Operations employing the
process of nuclear fission or fusion or handling of radioactive material, which
operations include but are not limited to:

 

a.               The use of nuclear
reactors such as atomic piles, particle accelerators or generators; or

 

b.              The use, handling or
transportation of radioactive materials, or the use, handling or transportation
of any weapon of war or explosive device employing nuclear fission or fusion.

 

However, subparagraphs a and b above shall not apply
to:

 

i.      The exclusive use of particle accelerators
incidental to ordinary industrial or education research 

pursuits, or

 

ii.     The exclusive use, handling or
transportation of radioisotopes for medical or industrial use, or to radium or
radium compounds.

 

11.         Operation of docks or
wharves as related to port authorities.

 

12.         The manufacturing,
mining, refining, processing, distribution, installation, removal or
encapsulment of asbestos.

 

4

 

13.         Risks involving known
exposure to the following substances:

 

a.               Dioxin;

 

b.              Polychlorinated
biphenols;

 

c.               Asbestos.

 

14.         All railway operations
except sidetrack agreements.

 

15.         Amusement parks,
carnivals or circuses.  This exclusion
shall not apply to miniature golf courses or driving range operations.

 

16.         Subaquaeous operations.

 

17.         Underground mining;
however, this exclusion shall not be construed to apply to open pit-quarrying
or “surface mining” operations.

 

18.         Blasting operations,
except for incidental exposures (i.e., 10.0% or less of the insured’s estimated
payroll when the account is quoted).

 

19.         Demolition of buildings
or structures in excess of five stories.

 

20.         Shoring, underpinning or
moving of buildings or structures.

 

21.         Erection or repair of
scaffolds if 10.0% or more of the insured’s annual remuneration is attributed
to NCCI Class Code 9529.

 

22.         Construction of tunnels
or dams.

 

23.         Fireworks, fuses, or any
explosive substance (as defined below) as follows:

 

a.               Manufacturers or
importers of such items;

 

b.              Loading of such
items into containers for use as explosive objects, propellant charges or detonation
devices and the storage thereof (except as previously provided for, on an
incidental basis, in exclusion 18);

 

c.               Manufacturers or
importers of any product in which such items are an ingredient;

 

d.              Handling, storage,
transportation or use of such items (except as previously provided for, on an
incidental basis, in exclusion 18).

 

“Explosive
substance” is defined as any substance manufactured for the express purpose of
exploding as differentiated from commodities used industrially and which are
only incidentally explosive.

 

24.         Onshore and offshore gas
and oil drilling operations.

 

5

 

25.         Operations where
principal business includes the use of any owned or unowned aircraft, or any
device or machine intended for and/or aiding in the achievement of atmospheric
flight, projection or orbit, for flight, and/or the ownership or operation of
any airport.  This exclusion shall not
apply where exposure is incidental (i.e., constitutes 10.0% or less of the
insured’s payroll) to the principal business operations and the aircraft
contains eight seats or fewer.

 

26.         Municipal law enforcement
organizations and municipal fire fighting organizations, whether professional
or voluntary.

 

27.         Logging or forestry
operations.

 

28.         Professional employment
organizations (PEO’s).

 

29.         Professional sports
teams.

 

30.         Operations where the
principal business of the risk is manufacturing, production, distribution,
refining or storage of natural or artificial fuel, gas, butane, propane,
liquefied petroleum gases or gasoline. 
This exclusion shall not apply to any risk whose principal business
operations are any of the following:

 

a.               Retail gasoline service station, either full or
self service, or retail gasoline marina;

 

b.              Convenience store with gasoline sales with its
petroleum gas and/or storage tanks located below ground.

 

31.         Acts of terrorism, as
defined in paragraph G of the Definitions Article, that involve the following
or preparation of the following:

 

a.               The use, release or
escape of nuclear materials, or that directly or indirectly result in nuclear
reaction or radiation or radioactive contamination; or

 

b.              That are carried out
by means of the dispersal or application of pathogenic or poisonous biological
or chemical materials and it appears that one purpose of the act of terrorism
was to release such materials.

 

B.             In the event the
Company is inadvertently bound on any risk which is excluded under subparagraph
9 or subparagraphs 14 through 30 of paragraph A above, the reinsurance provided
under this Contract shall apply on such risk until discovery by the Company of
the existence of such risk and for 30 days thereafter, or for a period of time
specific to the applicable state cancellation requirements, not to exceed
120 days.  This limitation shall not
apply as respects Arizona.  Coverage
shall cease after such time or at policy anniversary as respects Arizona
policies, unless the Company has received from the Reinsurer written notice of
its approval of such risk within 30 days.

 

C.             Notwithstanding the
foregoing, any reinsurance falling within the scope of one or more of the
exclusions set forth above that is specially accepted by the Reinsurer from the
Company shall be covered under this Contract and subject to all of the terms
and conditions hereof, except as such terms are modified by the special
acceptance.  In the event a reinsurer
becomes a party to this Contract subsequent to one or more special 

 

6

 

acceptances
hereunder, the new reinsurer shall automatically accept such special
acceptance(s) as being covered hereunder.

 

Article VI - Retention and
Limit

 

A.           As respects all losses
subject hereto except losses arising out of an occurrence of an act of
terrorism, as respects each excess layer of reinsurance coverage provided by
this Contract, the Company shall retain and be liable for the first amount of
ultimate net loss (whether involving any one or any combination of the classes
of business covered hereunder, regardless of the number of policies under which
such loss is payable or the number of different interests insured), shown as “Company’s
Retention” for that excess layer in Schedule A attached hereto, arising out of
each occurrence.  The Reinsurer shall
then be liable, as respects each excess layer, for the amount by which such
ultimate net loss exceeds the Company’s retention, but the liability of the
Reinsurer shall not exceed the amount, shown as “Reinsurer’s Per Occurrence
Limit” for that excess layer in Schedule A attached hereto, as respects any one
occurrence.

 

B.             As respects losses
arising out of an occurrence of an act of terrorism, as respects each excess
layer of reinsurance coverage provided hereunder, the Company shall retain and
be liable for the first amount of ultimate net loss, shown as “Company’s
Retention” for that excess layer in Schedule A attached hereto, arising out of
each occurrence.  The Reinsurer shall
then be liable, as respects each excess layer, for the amount by which such
ultimate net loss exceeds the Company’s retention, but the liability of the
Reinsurer shall not exceed the amount shown as “Reinsurer’s Terrorism Per
Occurrence Limit” for that excess layer in Schedule A attached hereto as
respects any one occurrence of an act of terrorism, nor shall it exceed the
amount shown as “Reinsurer’s Contract Year Terrorism Limit” for that excess
layer in Schedule A attached hereto as respects loss or losses arising out of
all occurrences of acts of terrorism during any one contract year.

 

C.             The Company deems
that the maximum Employers Liability policy limit subject hereto shall not
exceed $1,000,000 for policies issued in Texas and Illinois, or $2,000,000 for
all other policies.  Policy limits in
excess of the permissible amounts may be submitted by special acceptance to the
Reinsurer for coverage hereunder, subject to the provisions of paragraph C
of the Exclusions Article.

 

Article VII - Reinstatement

 

A.           In the event all or any
portion of the reinsurance under any excess layer of reinsurance coverage
provided by paragraph A of the Retention and Limit Article of this
Contract is exhausted by loss, the amount so exhausted shall be reinstated
immediately from the time the occurrence commences hereon.

 

1.               As respects each
amount so reinstated under the first excess layer, the Company shall pay no
additional premium.

 

2.               As respects each
amount so reinstated under the second excess layer, the Company agrees to pay
additional premium equal to the product of the following:

 

7

 

a.               The percentage of
the occurrence limit for the second excess layer reinstated (based on the loss
paid by the Reinsurer under that excess layer); times

 

b.              The earned
reinsurance premium for the second excess layer for the contract year (exclusive
of reinstatement premium).

 

B.             Whenever the Company
requests payment by the Reinsurer of any loss under the second excess layer that
triggers additional reinstatement premium to be paid hereunder, the Company
shall submit a statement to the Reinsurer of reinstatement premium due the
Reinsurer for that excess layer.  If the
earned reinsurance premium for the second excess layer for the contract year
has not been finally determined as of the date of any such statement, the
calculation of reinstatement premium due for that excess layer shall be based
on the annual deposit premium for that excess layer and shall be readjusted
when the earned reinsurance premium for that excess layer for the contract year
has been finally determined.  Any
reinstatement premium shown to be due the Reinsurer for the second excess layer
as reflected by any such statement (less prior payments, if any, for that
excess layer) shall be payable by the Company concurrently with payment by the
Reinsurer of the requested loss for that excess layer.  Any return reinstatement premium shown to be
due the Company shall be remitted by the Reinsurer as promptly as possible
after receipt and verification of the Company’s statement.

 

C.             Notwithstanding
anything stated herein, the liability of the Reinsurer under the second excess
layer of reinsurance coverage provided by paragraph A of the Retention and
Limit Article of this Contract shall not exceed $5,000,000 as respects loss or
losses arising out of any one occurrence, nor shall it exceed $10,000,000 in
all during any one contract year, further subject to the “Reinsurer’s Contract
Year Terrorism Limit.”

 

Article VIII - Definitions

 

A.           “Ultimate net loss” as
used herein is defined as the sum or sums (including loss in excess of policy
limits, extra contractual obligations and any loss adjustment expense, as
hereinafter defined) paid or payable by the Company in settlement of claims and
in satisfaction of judgments rendered on account of such claims, after
deduction of all recoveries from subrogation, all recoveries, and all claims on
inuring insurance or reinsurance, whether collectible or not.  Nothing herein shall be construed to mean
that losses under this Contract are not recoverable until the Company’s
ultimate net loss has been ascertained.

 

B.             “Loss in excess of
policy limits” and “extra contractual obligations” as used herein shall be
defined as follows:

 

1.               “Loss in excess of
policy limits” shall mean 90.0% of any amount paid or payable by the Company in
excess of its policy limits, but otherwise within the terms of its policy, such
loss in excess of the Company’s policy limits having been incurred because of,
but not limited to, failure by the Company to settle within the policy limits
or by reason of the Company’s alleged or actual negligence or bad faith in
rejecting an offer of settlement or in the preparation of the defense or in the
trial of an action against its insured or reinsured or in the preparation or
prosecution of an appeal consequent upon such an action.

 

8

 

2.               “Extra contractual
obligations” shall mean 90.0% of any punitive, exemplary, compensatory or
consequential damages paid or payable by the Company, not covered by any other
provision of this Contract and which arise from the handling of any claim on
business subject to this Contract, such liabilities arising because of, but not
limited to, failure by the Company to settle within the policy limits or by
reason of the Company’s alleged or actual negligence or bad faith in rejecting
an offer of settlement or in the preparation of the defense or in the trial of
an action against its insured or reinsured or in the preparation or prosecution
of an appeal consequent upon such an action. 
An extra contractual obligation shall be deemed, in all circumstances,
to have occurred on the same date as the loss covered or alleged to be covered
under the policy.

 

Notwithstanding anything
stated herein, this Contract shall not apply to any loss in excess of policy
limits or any extra contractual obligation incurred by the Company as a result
of any fraudulent and/or criminal act by any officer or director of the Company
acting individually or collectively or in collusion with any individual or
corporation or any other organization or party involved in the presentation,
defense or settlement of any claim covered hereunder.

 

If
any provision of this paragraph B shall be rendered illegal or unenforceable by
the laws, regulations or public policy of any state, such provision shall be
considered void in such state, but this shall not affect the validity or
enforceability of any other provision of this Contract or the enforceability of
such provision in any other jurisdiction.

 

C.             “Occurrence” as used
herein is defined as an accident or occurrence or a series of accidents or
occurrences arising out of or caused by one event, whether involving one or
more of the Company’s policies, except that:

 

1.               As respects Workers’
Compensation policies, each occupational or industrial disease or cumulative
injury case contracted by an employee of an insured shall be deemed to have
been caused by a separate occurrence commencing on:

 

a.               The date of
disability for which compensation is payable if the case is compensable under
the Workers’ Compensation Law;

 

b.              The date disability
due to the disease actually began if the case is not compensable under the
Workers’ Compensation Law; or

 

c.               The date of
cessation of employment if claim is made after employment has ceased.

 

2.               Notwithstanding the
provisions of subparagraph 1 above, as respects losses resulting from
occupational or industrial disease and cumulative injury suffered by employees
of an insured for which the employer is liable as a result of a sudden and
accidental event not exceeding 72 hours in duration, all such losses shall
be considered one occurrence and may be combined with losses not classified as
occupational or industrial disease or cumulative injury which arise out of the
same event and the combination of such losses shall be considered as one occurrence
within the meaning hereof.

 

9

 

3.               Notwithstanding the
foregoing, the following shall apply to occurrences involving natural
disasters:

 

a.               An occurrence shall
be limited to damage, injury or loss arising out of a natural disaster during
any continuous 168 hour period.

 

b.              The Company may
choose the date and time when such 168 hour period commences and if the
occurrence is of greater duration than 168 hours, the Company may divide such
occurrence into two or more occurrences, provided no two periods overlap and
provided no period commences earlier than the date and time of the first loss
to the Company in such occurrence.

 

c.               “Natural disaster”
shall mean loss caused by the perils of tornado, cyclone, windstorm, hurricane
and hail arising from the same atmospheric disturbance; earthquake, including
ensuing fire, landslide, mudslide, flood, tidal wave; volcanic eruptions;
flood; tides; tidal wave; landslide/mudslide; and meteors.

 

D.            “Occupational or
industrial disease” shall mean any abnormal condition that fulfills all of the
following conditions:

 

1.               It is not traceable
to a definite compensable accident occurring during the employee’s present or
past employment; and

 

2.               It has been caused
by exposure to a disease producing agent or agents present in the workers’
occupational environment; and

 

3.               It has resulted in
a disability or death.

 

E.              “Cumulative injury”
is any injury that fulfills all of the following conditions:

 

1.               It is not traceable
to a definite compensable accident occurring during the employee’s present or
past employment; and

 

2.               It has occurred
from, and has been aggravated by, a repetitive employment-related activity; and

 

3.               It has resulted in
a disability or death.

 

F.              “Loss adjustment expense”
as used herein shall mean expenses assignable to the investigation, appraisal,
adjustment, settlement, litigation, defense and/or appeal of specific claims,
regardless of how such expenses are classified for statutory reporting
purposes.  Loss adjustment expense shall include, but not be limited to, interest on
judgments, expenses of outside adjusters and claim-specific declaratory
judgment expenses or other legal expenses and costs incurred in connection with
coverage questions and legal actions connected thereto, but shall not
include office expenses or salaries of the Company’s regular employees other
than medical management personnel whose cost the Company will bill to specific
cases on a time and expense basis.

 

10

 

G.             “Act of terrorism” as
used herein shall include all loss, cost or expense, including fire following,
related directly or indirectly from either:

 

1.               Any act of any
person or persons either acting on behalf of or in connection with any organization
or group with activities directed towards overthrowing, intimidating, coercing
or influencing of any government de jure
or de facto or of its populace or
its economic, political or social systems, by force, violence, weapons of mass
destruction, the destruction, disruption or subversion of communication and
information system infrastructures and/or its content thereof, or sabotage,
and/or threat therefrom; or

 

2.               An act of terrorism
that is certified by the Secretary of Treasury, in concurrence with the
Secretary of State and the Attorney General of the United States.

 

Terrorism losses also
include all actual or alleged losses, liabilities, damages, injuries, defense
costs, and costs or expenses directly or indirectly arising out of, contributed
by, caused by, resulting from, or in connection with any action taken in
controlling, preventing, suppressing, retaliating against, or responding to
such acts.

 

Notwithstanding the
above, in the event a loss occurs on business subject hereunder which arises
out of an act of workplace violence and is not consistent with the provisions
of subparagraphs 1 and 2 above, such loss shall be covered hereunder,
subject to the provisions of the Exclusions Article and all other provisions of
this Contract and not considered an act of terrorism.  Further, any occurrence which is not or can
not be determined, classified or certified as per subparagraphs 1 and 2 above
shall be covered hereunder and not considered an act of terrorism.

 

H.            “Declaratory judgment
expenses” as used herein shall mean all expenses incurred by the Company in
connection with declaratory judgment actions brought to determine the Company’s
defense and/or indemnification obligations that are assignable to specific
policies and claims subject to this Contract. 
Declaratory judgment expenses shall be deemed to have been incurred by
the Company on the date of the original loss (if any) giving rise to the
declaratory judgment action.  In the
event there is no loss other than declaratory judgment expenses with respect to
any claim hereunder, such expenses shall be deemed loss for purposes of this
Contract.

 

Article IX - Other
Reinsurance

 

A.           The Company shall be
permitted to carry facultative reinsurance, recoveries under which shall inure
to the benefit of this Contract.

 

B.             The Company shall be
permitted to carry underlying quota share reinsurance and underlying excess
reinsurance, recoveries under which shall inure solely to the benefit of the
Company and be entirely disregarded in applying all of the provisions of this
Contract.

 

Article X - Federal
Terrorism Recovery

 

A.           Any loss reimbursement
the Company receives from the United States Government under the Terrorism Risk
Insurance Act of 2002, as amended by the Terrorism Risk Insurance 

 

11

 

Extension Act of
2005 (together the “Terrorism Act”) as a result of occurrences commencing
during each contract year shall inure to the benefit of this Contract in the
proportion that the Company’s insured losses (as defined in the Terrorism Act)
in that occurrence under policies reinsured under this Contract bear to the
Company’s total insured losses in that occurrence.

 

B.             If a loss
reimbursement received by the Company under the Terrorism Act is based on the
Company’s insured losses in more than one occurrence and the United States
Government does not designate the amount allocable to each occurrence, the
reimbursement shall be prorated in the proportion that the Company’s insured
losses in each occurrence bear to the Company’s total insured losses arising
out of all occurrences to which the recovery applies.

 

Article XI - Annuities at
Company’s Option

 

A.           Whenever the Company is
required, or elects, to purchase an annuity or to negotiate a structured
settlement in excess of the retention of this Contract, either in satisfaction
of a judgment or in an out-of-court settlement or otherwise, the cost of the
annuity or the structured settlement, as the case may be, shall be deemed part
of the Company’s ultimate net loss, provided such annuity or structured
settlement terms grant the Company full and final release as respects the
indemnity portion of the settlement. 
Additionally, it is the Company’s intent to place all annuities or
structured settlements with a carrier whose A.M. Best’s rating is “A” or
better.

 

B.             The terms “annuity”
or “structured settlement” shall be understood to mean any insurance policy,
lump sum payment, agreement or device of whatever nature resulting in the
payment of a lump sum by the Company in settlement of any or all future
liabilities which may attach to it as a result of an occurrence.

 

C.             In the event the
Company purchases an annuity which inures in whole or in part to the benefit of
the Reinsurer, it is understood that the liability of the Reinsurer is not
released thereby. In the event the Company is required to provide benefits not
provided by the annuity for whatever reason, the Reinsurer shall pay its share
of any loss.

 

Article XII - Reports to the
Reinsurer

 

A.           Whenever a claim or
settlement by the Company hereunder is for an amount greater than $1,000,000
and/or whenever a claim appears likely to result in a claim under this
Contract, the Company shall notify the Reinsurer.  Further, the Company shall notify the
Reinsurer whenever a claim involves a fatality, amputation, spinal cord damage,
brain damage, blindness or extensive burns, regardless of liability, including
all subsequent developments.  The
Reinsurer shall have the right to participate, at its own expense, in the
defense of any claim or suit or proceeding involving this reinsurance.  The Company shall also provide any additional
information that from time to time may be reasonably required by the Reinsurer
to ascertain liability under this Contract.

 

B.             All claim settlements
made by the Company, provided such settlements are within the terms of this
Contract, shall be binding upon the Reinsurer, and the Reinsurer agrees to 

 

12

 

pay all amounts
for which it is liable upon receipt of reasonable evidence of the amount paid
by the Company.

 

Article XIII - Special
Commutation

 

A.           In the event a Subscribing Reinsurer meets
one or more of the following conditions, the Company may require a commutation
of that portion of any excess loss hereunder represented by any outstanding
claim or claims, including any related loss adjustment expense:

 

1.               The Subscribing
Reinsurer’s A.M. Best’s rating has been assigned or downgraded below A-
(including any “Not Rated” rating) and/or Standard & Poor’s rating has been
assigned or downgraded below BBB+; or

 

2.               The Subscribing
Reinsurer has ceased assuming new and renewal property and casualty treaty
reinsurance business.

 

“Outstanding claim or claims” shall be defined as known or unknown
claims, including any billed yet unpaid claims. 
However, unless otherwise mutually agreed, this paragraph A shall
not apply unless the outstanding claim or claims is for an amount not less than
$5,000.

 

B.             If the Company elects to require commutation
as provided in paragraph A above, the Company shall submit a Statement of
Valuation of the outstanding claim or claims as of the last day of the month
immediately preceding the month in which the Company elects to require
commutation, as determined by the Company. 
Such Statement of Valuation shall include the elements considered
reasonable to establish the excess loss and shall set forth or attach the
information relied upon by the Company and the methodology employed to
calculate the excess loss.  The
Subscribing Reinsurer shall then pay the amount requested within 30 calendar
days of receipt of such Statement of Valuation, unless the Subscribing
Reinsurer needs additional information from the Company to assess the Company’s
Statement of Valuation or contests such amount.

 

C.             If the Subscribing Reinsurer needs additional
information from the Company to assess the Company’s Statement of Valuation or
contests the amount requested, the Subscribing Reinsurer shall so notify the
Company within 15 calendar days of receipt of the Company’s Statement of
Valuation.  The Company shall supply any
reasonably requested information to the Subscribing Reinsurer within 15
calendar days of receipt of the notification. 
Within 30 calendar days of the date of the notification or of the
receipt of the information, whichever is later, the Subscribing Reinsurer shall
provide the Company with its Statement of Valuation of the outstanding claim or
claims as of the last day of the month immediately preceding the month in which
the Company elects to require commutation, as determined by the Subscribing
Reinsurer.  Such Statement of Valuation
shall include the elements considered reasonable to establish the excess loss
and shall set forth or attach the information relied upon by the Subscribing
Reinsurer and the methodology employed to calculate the excess loss.

 

D.            If agreement, as outlined in
paragraphs A, B and C, cannot be reached, either party can abandon the
commutation effort, or the Company and the Subscribing Reinsurer may seek to
settle any difference by mutually appointing an independent actuary.

 

13

 

E.              If the parties cannot agree on an acceptable
independent actuary within 15 calendar days of the date of the Subscribing
Reinsurer’s Statement of Valuation, then each party shall appoint an actuary as
party arbitrators for the limited and sole purpose of selecting an independent
actuary.  If the actuaries cannot agree
on an acceptable independent actuary within 15 calendar days of the date of the
Subscribing Reinsurer’s Statement of Valuation, the Company shall supply the
Subscribing Reinsurer with a list of at least three proposed independent
actuaries, and the Subscribing Reinsurer shall select the independent actuary
from that list.

 

F.              Upon selection of the independent actuary,
both parties shall present their respective written submissions to the
independent actuary.  The independent
actuary may, at his or her discretion, request additional information.  The independent actuary shall issue his or
her decision within 45 calendar days after the written submissions have been
filed and any additional information has been provided.

 

G.             The decision of the independent actuary shall
be final and binding.  The expense of the
independent actuary shall be equally divided between the two parties.  For the purposes of this Article, unless
mutually agreed otherwise, an “independent actuary” shall be an actuary who
satisfies each of the following criteria:

 

1.               Is regularly
engaged in the valuation of claims resulting from lines of business subject to
this Contract; and

 

2.               Is either a Fellow
of the Casualty Actuarial Society or of the American Academy of Actuaries; and

 

3.               Is disinterested
and impartial regarding this commutation.

 

H.            Notwithstanding
paragraphs A, B and C above, in the event that the Subscribing Reinsurer no
longer meets any of the conditions specified in subparagraph 1 or 2 in
paragraph A above, this commutation may continue on a mutually agreed basis.

 

I.                 Payment by the
Subscribing Reinsurer of the amount requested in accordance with paragraph B, C
or F above, shall release the Subscribing Reinsurer from all further liability
for outstanding claim or claims, known or unknown, under this Contract and
shall release the Company from all further liability for payments of salvage or
subrogation amounts, known or unknown, to the Subscribing Reinsurer under this
Contract.

 

J.                In the event of
any conflict between this Article and any other article of this Contract, the
terms of this Article shall control.

 

K.            This Article shall
survive the termination of this Contract.

 

Article XIV - Salvage and Subrogation

 

The Reinsurer shall be credited with recoveries from salvage (i.e.,
reimbursement obtained or recovery made by the Company, less the actual cost,
excluding salaries of officials and employees of the Company and sums paid to
attorneys as retainer, of obtaining such 

 

14

 

reimbursement or making such recovery) on account of claims and
settlements involving reinsurance hereunder. 
Recoveries therefrom shall always be used to reimburse the excess
carriers in the reverse order of their priority according to their
participation before being used in any way to reimburse the Company for its
primary loss.  The Company hereby agrees
to enforce its rights to salvage or subrogation relating to any loss, a part of
which loss was sustained by the Reinsurer, and to prosecute all claims arising
out of such rights.

 

Article XV - Premium

 

A.           As premium for each
excess layer of reinsurance coverage provided by this Contract, the Company
shall pay the Reinsurer the greater of the following for each contract year
(except the runoff contract year, if any):

 

1.               The amount (or pro
rata portion thereof if this Contract is terminated prior to the end of any
12-month contract year in accordance with the provisions of the Special
Termination Article), shown as “Annual Minimum Premium” for that excess layer
in Schedule A attached hereto; or

 

2.               The percentage,
shown as “Premium Rate” for that excess layer in Schedule A attached
hereto, of the Company’s net earned premium for the contract year.

 

B.             The Company shall pay
the Reinsurer an annual deposit premium for each excess layer of the amount,
shown as “Annual Deposit Premium” for that excess layer in Schedule A
attached hereto, in four equal installments of the amount, shown as “Quarterly
Deposit Premium” for that excess layer in Schedule A attached hereto, on
January 1, April 1, July 1 and October 1 of each contract year
(except the runoff contract year, if any). 
However, no deposit premium installments shall be due after the
effective date of termination.

 

C.             Within 60 days
following the end of each contract year (except the runoff contract year, if
any) and within 60 days following the 12-month period thereafter, the
Company shall provide a report to the Reinsurer setting forth the premium due
hereunder for each excess layer for the contract year, computed in accordance
with paragraph A, and any additional premium due the Reinsurer for each
such excess layer shall be remitted by the Company with its report.  If the premium so computed for any excess
layer is less than the previously paid, but more than the minimum premium, for
that excess layer, the balance shall be returned by the Reinsurer to the
Company within 30 days of the report.

 

D.            In the event this
Contract is terminated on a “runoff” basis, the Company shall pay the Reinsurer
premium for each excess layer for the runoff contract year equal to the
percentage, shown as “Premium Rate” for that excess layer in Schedule A
attached hereto, of the Company’s unearned premium for that excess layer
applicable to subject business in force on the effective date of termination,
payable in two equal installments on the first day of each six-month period
during the runoff contract year.

 

E.              “Net earned premium”
as used herein is defined as the Company’s gross earned premium for the classes
of business subject to this Contract, adjusted for experience modification,
discounts, credits, surcharges, expense constants and deductible credits, plus
or minus the Reinsurer’s pro rata share of any premium arising from audit
adjustments, minus premiums paid for facultative reinsurance which inures to
the benefit of this Contract.

 

15

 

Article XVI - Late Payments

 

A.           The provisions of this
Article shall not be implemented unless specifically invoked, in writing,
by one of the parties to this Contract.

 

B.             In the event any
premium, loss or other payment due either party is not received by the
intermediary named in the Intermediary Article (BRMA 23A) (hereinafter referred
to as the “Intermediary”) by the payment due date, the party to whom payment is
due may, by notifying the Intermediary in writing, require the debtor party to
pay, and the debtor party agrees to pay, an interest penalty on the amount past
due calculated for each such payment on the last business day of each month as
follows:

 

1.               The number of
full days which have expired since the due date or the last monthly calculation,
whichever the lesser; times

 

2.               1/365ths of the
six-month United States Treasury Bill rate as quoted in The Wall
Street Journal on the first business day of the month for which the
calculation is made; times

 

3.               The amount past
due, including accrued interest.

 

It is agreed that
interest shall accumulate until payment of the original amount due plus
interest penalties have been received by the Intermediary.

 

C.             The establishment of
the due date shall, for purposes of this Article, be determined as follows:

 

1.               As respects the
payment of routine deposits and premiums due the Reinsurer, the due date shall
be as provided for in the applicable section of this Contract.  In the event a due date is not specifically
stated for a given payment, it shall be deemed due 30 days after the date
of transmittal by the Intermediary of the initial billing for each such
payment.

 

2.               Any claim or loss
payment due the Company hereunder shall be deemed due 30 business days
after the proof of loss and demand for payment is transmitted to the
Reinsurer.  If such loss or claim payment
is not received within the 30 days, interest will accrue on the payment or
amount overdue in accordance with paragraph B above, from the date the
proof of loss and demand for payment was transmitted to the Reinsurer.

 

3.               As respects any
payment, adjustment or return due either party not otherwise provided for in
subparagraphs 1 and 2 above, the due date shall be as provided for in the
applicable section of this Contract.  In
the event a due date is not specifically stated for a given payment, it shall
be deemed due 30 business days following transmittal of written
notification that the provisions of this Article have been invoked.

 

For purposes of interest
calculations only, amounts due hereunder shall be deemed paid upon receipt by
the Intermediary.

 

16

 

D.            Nothing herein shall
be construed as limiting or prohibiting a Subscribing Reinsurer from contesting
the validity of any claim, or from participating in the defense of any claim or
suit, or prohibiting either party from contesting the validity of any payment
or from initiating any arbitration or other proceeding in accordance with the
provisions of this Contract.  If the
debtor party prevails in an arbitration or other proceeding, then any interest
penalties due hereunder on the amount in dispute shall be null and void.  If the debtor party loses in such proceeding,
then the interest penalty on the amount determined to be due hereunder shall be
calculated in accordance with the provisions set forth above unless otherwise
determined by such proceedings.  If a
debtor party advances payment of any amount it is contesting, and proves to be
correct in its contestation, either in whole or in part, the other party shall
reimburse the debtor party for any such excess payment made plus interest on
the excess amount calculated in accordance with this Article.

 

E.              Interest penalties
arising out of the application of this Article that are $50,000 or less from
any party shall be waived unless there is a pattern of late payments consisting
of three or more items over the course of any 12-month period.

 

Article XVII - Offset and
Security

 

A.           Each party hereto has
the right, which may be exercised at any time, to offset any amounts, whether
on account of premiums or losses or otherwise, due from such party to another
party under this Contract or any other reinsurance contract heretofore or
hereafter entered into between them, against any amounts, whether on account of
premiums or losses or otherwise due from the latter party to the former
party.  The party asserting the right of
offset may exercise this right, whether as assuming or ceding insurer or in
both roles in the relevant agreement or agreements.

 

B.             Each party hereby
assigns and pledges to the other party (or to each other party, if more than
one) all of its rights under this Contract to receive premium or loss payments
at any time from such other party (“collateral”), to secure its premium or loss
obligations to such other party at any time under this Contract and any other
reinsurance agreement heretofore or hereafter entered into by and between them
(“secured obligations”).  If at any time
a party is in default under any secured obligation or shall be subject to any
liquidation, rehabilitation, reorganization or conservation proceeding, each
other party shall be entitled in its discretion, to apply, or to withhold for
the purpose of applying in due course, any collateral assigned and pledged to
it by the former party and otherwise to realize upon such collateral as
security for such secured obligations.

 

C.             The security interest
described herein, and the term “collateral,” shall apply to all payments and
other proceeds in respect of the rights assigned and pledged.  A party’s security interest in collateral
shall be deemed evidenced only by the counterpart of this Contract delivered to
such party.

 

D.            Each right under this
Article is a separate and independent right, exercisable, without notice or
demand, alone or together with other rights, in the sole election of the party
entitled thereto, and no waiver, delay, or failure to exercise, in respect of
any right, shall constitute a waiver of any other right.  The provisions of this Article shall survive
any cancellation or other termination of this Contract.

 

17

 

E.              In the event of the
insolvency of a party hereto, offsets shall only be allowed in accordance with
the laws of the insolvent party’s state of domicile.

 

Article XVIII - Access to
Records (BRMA 1D)

 

The Reinsurer or its designated representatives shall have access at
any reasonable time to all records of the Company which pertain in any way to
this reinsurance.

 

Article XIX - Liability of
the Reinsurer

 

A.           The liability of the
Reinsurer shall follow that of the Company in every case and be subject in all
respects to all the general and specific stipulations, clauses, waivers and
modifications of the Company’s policies and any endorsements thereon.  However, in no event shall this be construed
in any way to provide coverage outside the terms and conditions set forth in
this Contract.

 

B.             Nothing herein shall
in any manner create any obligations or establish any rights against the
Reinsurer in favor of any third party or any persons not parties to this
Contract.

 

Article XX - Net Retained
Lines (BRMA 32E)

 

A.           This Contract applies
only to that portion of any policy which the Company retains net for its own
account (prior to deduction of any underlying reinsurance specifically
permitted in this Contract), and in calculating the amount of any loss
hereunder and also in computing the amount or amounts in excess of which this
Contract attaches, only loss or losses in respect of that portion of any policy
which the Company retains net for its own account shall be included.

 

B.             The amount of the
Reinsurer’s liability hereunder in respect of any loss or losses shall not be
increased by reason of the inability of the Company to collect from any other
reinsurer(s), whether specific or general, any amounts which may have become
due from such reinsurer(s), whether such inability arises from the insolvency
of such other reinsurer(s) or otherwise.

 

Article XXI - Errors and
Omissions (BRMA 14F)

 

Inadvertent delays, errors or omissions made in connection with this
Contract or any transaction hereunder shall not relieve either party from any
liability which would have attached had such delay, error or omission not
occurred, provided always that such error or omission is rectified as soon as
possible after discovery.

 

18

 

Article XXII - Currency
(BRMA 12A)

 

A.           Whenever the word “Dollars”
or the “$” sign appears in this Contract, they shall be construed to mean
United States Dollars and all transactions under this Contract shall be in
United States Dollars.

 

B.             Amounts paid or
received by the Company in any other currency shall be converted to United
States Dollars at the rate of exchange at the date such transaction is entered
on the books of the Company.

 

Article XXIII - Taxes (BRMA
50B)

 

In consideration of the terms under which this Contract is issued, the
Company will not claim a deduction in respect of the premium hereon when making
tax returns, other than income or profits tax returns, to any state or
territory of the United States of America or the District of Columbia.

 

Article XXIV - Federal
Excise Tax

 

A.           The Reinsurer has
agreed to allow for the purpose of paying the Federal Excise Tax the applicable
percentage of the premium payable hereon (as imposed under Section 4371 of the
Internal Revenue Code) to the extent such premium is subject to the Federal
Excise Tax.

 

B.             In the event of any
return of premium becoming due hereunder the Reinsurer will deduct the
applicable percentage from the return premium payable hereon and the Company or
its agent should take steps to recover the tax from the United States
Government.

 

Article XXV - Reserves

 

(Applies only to a reinsurer which (1) does not qualify for full credit
with any insurance regulatory authority having jurisdiction over the Company’s
reserves, or (2) which is or becomes rated “B++” or lower or holds a “Not Rated”
rating by A.M. Best or is or becomes rated BBB+ or lower by Standard & Poor’s,
unless the Reinsurer has an A.M. Best’s rating of “A” or Standard & Poor’s
rating of “A” and group policyholders’ surplus equal to or above $2,000,000,000
at the inception of this Contract)

 

A.           As regards policies or
bonds issued by the Company coming within the scope of this Contract, the
Company agrees that when it shall file with the insurance regulatory authority
or set up on its books reserves for losses covered hereunder which it shall be
required by law to set up, it will forward to the Reinsurer a statement showing
the proportion of such reserves which is applicable to the Reinsurer.  The Reinsurer hereby agrees to fund such
reserves in respect of known outstanding losses that have been reported to the
Reinsurer and allocated loss adjustment expense relating thereto, losses and allocated
loss adjustment expense paid by the Company but not recovered from the
Reinsurer, plus reserves for losses and allocated loss adjustment expense
incurred but not reported, as 

 

19

 

shown in the statement
prepared by the Company (hereinafter referred to as “Reinsurer’s Obligations”)
by Regulation 114 trust accounts, funds withheld, cash advances or a
Letter of Credit, or combination thereof. 
For purposes of this Contract, the Lloyd’s United States Credit for
Reinsurance Trust Fund and the Hannover Re U.S. Master Trust shall be
considered acceptable funding instruments. 
The Reinsurer shall have the option of determining the method of funding
provided it is acceptable to the insurance regulatory authorities having
jurisdiction over the Company’s reserves.

 

B.             When funding by a
Letter of Credit, the Reinsurer agrees to apply for and secure timely delivery
to the Company of a clean, irrevocable and unconditional Letter of Credit
issued by a bank meeting the NAIC Securities Valuation Office credit standards
for issuers of Letters of Credit and containing provisions acceptable to the
insurance regulatory authorities having jurisdiction over the Company’s
reserves in an amount equal to the Reinsurer’s proportion of said
reserves.  Such Letter of Credit shall be
issued for a period of not less than one year, and shall contain an “evergreen”
clause, which automatically extends the term for one year from its date of
expiration or any future expiration date unless 30 days (60 days
where required by insurance regulatory authorities) prior to any expiration
date the issuing bank shall notify the Company by certified or registered mail
that the issuing bank elects not to consider the Letter of Credit extended for
any additional period.

 

C.             The Reinsurer and
Company agree that the Letters of Credit provided by the Reinsurer pursuant to
the provisions of this Contract may be drawn upon at any time, notwithstanding
any other provision of this Contract, and be utilized by the Company or any
successor, by operation of law, of the Company including, without limitation,
any liquidator, rehabilitator, receiver or conservator of the Company for the
following purposes, unless otherwise provided for in a separate Trust
Agreement:

 

1.               To reimburse the
Company for the Reinsurer’s Obligations, the payment of which is due under the
terms of this Contract and which has not been otherwise paid;

 

2.               To make refund of
any sum which is in excess of the actual amount required to pay the Reinsurer’s
Obligations under this Contract, if so requested by the Reinsurer;

 

3.               To fund an account
with the Company for the Reinsurer’s Obligations.  Such cash deposit shall be held in an
interest bearing account separate from the Company’s other assets, and interest
thereon not in excess of the prime rate shall accrue to the benefit of the
Reinsurer;

 

4.               To pay the
Reinsurer’s share of any other amounts the Company claims are due under this
Contract.

 

In the event the amount
drawn by the Company on any Letter of Credit is in excess of the actual amount
required for subparagraphs 1 or 3, or in the case of subparagraph 4, the actual
amount determined to be due, the Company shall promptly return to the Reinsurer
the excess amount so drawn.  All of the
foregoing shall be applied without diminution because of insolvency on the part
of the Company or the Reinsurer.

 

D.            The issuing bank shall
have no responsibility whatsoever in connection with the propriety of
withdrawals made by the Company or the disposition of funds withdrawn, except
to ensure 

 

20

 

that withdrawals are made
only upon the order of properly authorized representatives of the Company.

 

E.              At quarterly
intervals and as an estimated basis 45 days prior to each December 31, or more
frequently as agreed but never more frequently than quarterly, the Company
shall prepare a specific statement of the Reinsurer’s Obligations, for the sole
purpose of amending the Letter of Credit, in the following manner:

 

1.               If the statement
shows that the Reinsurer’s Obligations exceed the balance of credit as of the
statement date, the Reinsurer shall, within 30 days after receipt of
notice of such excess, secure delivery to the Company of an amendment to the
Letter of Credit increasing the amount of credit by the amount of such
difference.

 

2.               If, however, the
statement shows that the Reinsurer’s Obligations are less than the balance of
credit as of the statement date, the Company shall, within 30 days after
receipt of written request from the Reinsurer, release such excess credit by
agreeing to secure an amendment to the Letter of Credit reducing the amount of
credit available by the amount of such excess credit.

 

Article XXVI - Insolvency

 

A.           In the event of the
insolvency of one or more of the reinsured companies, this reinsurance shall be
payable directly to the company or to its liquidator, receiver, conservator or
statutory successor on the basis of the liability of the company without
diminution because of the insolvency of the company or because the liquidator,
receiver, conservator or statutory successor of the company has failed to pay
all or a portion of any claim.  It is
agreed, however, that the liquidator, receiver, conservator or statutory
successor of the company shall give written notice to the Reinsurer of the
pendency of a claim against the company indicating the policy or bond reinsured
which claim would involve a possible liability on the part of the Reinsurer
within a reasonable time after such claim is filed in the conservation or
liquidation proceeding or in the receivership, and that during the pendency of
such claim, the Reinsurer may investigate such claim and interpose, at its own
expense, in the proceeding where such claim is to be adjudicated, any defense
or defenses that it may deem available to the company or its liquidator,
receiver, conservator or statutory successor. 
The expense thus incurred by the Reinsurer shall be chargeable, subject
to the approval of the Court, against the company as part of the expense of
conservation or liquidation to the extent of a pro rata share of the benefit
which may accrue to the company solely as a result of the defense undertaken by
the Reinsurer.

 

B.             Where two or more
reinsurers are involved in the same claim and a majority in interest elect to
interpose defense to such claim, the expense shall be apportioned in accordance
with the terms of this Contract as though such expense had been incurred by the
company.

 

C.             It is further
understood and agreed that, in the event of the insolvency of one or more of
the reinsured companies, the reinsurance under this Contract shall be payable
directly by the Reinsurer to the company or to its liquidator, receiver or
statutory successor, except as provided by Section 4118(a) of the New York
Insurance Law or except (1) where this Contract specifically provides another
payee of such reinsurance in the event of the insolvency of the company or (2)
where the Reinsurer with the consent of the direct insured 

 

21

 

or insureds has
assumed such policy obligations of the company as direct obligations of the
Reinsurer to the payees under such policies and in substitution for the
obligations of the company to such payees.

 

Article XXVII - Arbitration

 

A.           As a condition
precedent to any right of action hereunder, in the event of any dispute or
difference of opinion hereafter arising with respect to this Contract, it is
hereby mutually agreed that such dispute or difference of opinion shall be
submitted to arbitration.  One Arbiter
shall be chosen by the Company, the other by the Reinsurer, and an Umpire shall
be chosen by the two Arbiters before they enter upon arbitration, all of whom
shall be active or retired disinterested executive officers of insurance or
reinsurance companies or Lloyd’s London Underwriters.  In the event that either party should fail to
choose an Arbiter within 30 days following a written request by the other
party to do so, the requesting party may choose two Arbiters who shall in turn
choose an Umpire before entering upon arbitration.  If the two Arbiters fail to agree upon the
selection of an Umpire within 30 days following their appointment, the
Umpire shall be appointed in accordance with the procedures of the American
Arbitration Association.

 

B.             Each party shall
present its case to the Arbiters within 30 days following the date of
appointment of the Umpire.  The Arbiters
shall consider this Contract as an honorable engagement rather than merely as a
legal obligation and they are relieved of all judicial formalities and may
abstain from following the strict rules of law. 
The decision of the Arbiters shall be final and binding on both parties;
but failing to agree, they shall call in the Umpire and the decision of the
majority shall be final and binding upon both parties.  Judgment upon the final decision of the
Arbiters may be entered in any court of competent jurisdiction.

 

C.             If more than one
reinsurer is involved in the same dispute, all such reinsurers shall constitute
and act as one party for purposes of this Article and communications shall be
made by the Company to each of the reinsurers constituting one party, provided,
however, that nothing herein shall impair the rights of such reinsurers to
assert several, rather than joint, defenses or claims, nor be construed as
changing the liability of the reinsurers participating under the terms of this
Contract from several to joint.

 

D.            Each party shall bear
the expense of its own Arbiter, and shall jointly and equally bear with the
other the expense of the Umpire and of the arbitration.  In the event that the two Arbiters are chosen
by one party, as above provided, the expense of the Arbiters, the Umpire and
the arbitration shall be equally divided between the two parties.

 

E.              Any arbitration
proceedings shall take place at a location mutually agreed upon by the parties
to this Contract, but notwithstanding the location of the arbitration, all
proceedings pursuant hereto shall be governed by the law of the state in which
the Company has its principal office.

 

22

 

Article XXVIII - Service of
Suit (BRMA 49C)

 

(Applicable if the Reinsurer is not domiciled in the United States of
America, and/or is not authorized in any State, Territory or District of the
United States where authorization is required by insurance regulatory
authorities)

 

A.           It is agreed that in
the event the Reinsurer fails to pay any amount claimed to be due hereunder,
the Reinsurer, at the request of the Company, will submit to the jurisdiction
of a court of competent jurisdiction within the United States.  Nothing in this Article constitutes or should
be understood to constitute a waiver of the Reinsurer’s rights to commence an
action in any court of competent jurisdiction in the United States, to remove
an action to a United States District Court, or to seek a transfer of a case to
another court as permitted by the laws of the United States or of any state in
the United States.

 

B.             Further, pursuant to
any statute of any state, territory or district of the United States which
makes provision therefor, the Reinsurer hereby designates the party named in
its Interests and Liabilities Agreement, or if no party is named therein, the
Superintendent, Commissioner or Director of Insurance or other officer
specified for that purpose in the statute, or his successor or successors in
office, as its true and lawful attorney upon whom may be served any lawful
process in any action, suit or proceeding instituted by or on behalf of the
Company or any beneficiary hereunder arising out of this Contract.

 

Article XXIX - Material
Changes

 

A.           It is understood that no material changes in
business practices will take place during the term of this Contract that would
significantly change the underwriting results of the subject business without
prior approval by the Lead Reinsurer (i.e., American Re-Insurance Company, A
Delaware Corporation) including, but not limited to, claims handling and/or
settlement, and business mix (i.e., hazard group, and class of insureds).  If a material change in the Company’s
business practices is to occur during the period, the Reinsurer shall be
allowed to negotiate changes in the contractual terms of the Contract
retroactively to remedy the change.

 

B.             It is further agreed that the Company will
furnish statutory quarterly and annual financial statements to the Reinsurer at
the same time these reports are filed with regulatory authorities.

 

Article XXX - Agency
Agreement

 

If more than one reinsured company is named as a party to this
Contract, the first named company shall be deemed the agent of the other
reinsured companies (subject to the provisions of the Insolvency Article) for
purposes of sending or receiving notices required by the terms and conditions
of this Contract, and for purposes of remitting or receiving any monies due any
party.

 

23

 

Article XXXI - Governing Law
(BRMA 71B)

 

This Contract shall be governed by and construed in accordance with the
laws of the State of Florida.

 

Article XXXII - Intermediary
(BRMA 23A)

 

Benfield Inc. is hereby recognized as the Intermediary negotiating this
Contract for all business hereunder.  All
communications (including but not limited to notices, statements, premium,
return premium, commissions, taxes, losses, loss adjustment expense, salvages
and loss settlements) relating thereto shall be transmitted to the Company or
the Reinsurer through Benfield Inc. 
Payments by the Company to the Intermediary shall be deemed to constitute
payment to the Reinsurer.  Payments by
the Reinsurer to the Intermediary shall be deemed to constitute payment to the
Company only to the extent that such payments are actually received by the
Company.

 

In Witness Whereof, the Company
by its duly authorized representative has executed this Contract as of the date
undermentioned at:

North Palm Beach, Florida,             
this ,             
day of ,             
in the year ,             .

 

	
   

  	
   

  
	
   

  	
  AmCOMP Preferred
  Insurance Company

  
	
   

  	
  AmCOMP Assurance
  Corporation

  
	
   

  	
  any and all
  insurance companies which are now or hereafter come under the same ownership
  or management as the AmCOMP Group

  

 

24

 

Schedule A

 

Excess
Workers’ Compensation

Reinsurance
Contract

Effective:  January 1, 2006

 

issued to

 

AmCOMP Preferred Insurance Company

North Palm Beach, Florida

AmCOMP Assurance Corporation

North Palm Beach, Florida

and

any and all insurance companies which are now or

hereafter come under the same ownership or management as the

AmCOMP Group

North Palm Beach, Florida

 

	
   

  	
   

  	
  First 

  Excess

  	
   

  	
  Second 

  Excess

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company’s Retention

  	
   

  	
  $

  	
  2,000,000

  	
   

  	
  $

  	
  5,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Reinsurer’s Per Occurrence Limit

  	
   

  	
  $

  	
  3,000,000

  	
   

  	
  $

  	
  5,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Reinsurer’s Terrorism Per Occurrence Limit

  	
   

  	
  $

  	
  3,000,000

  	
   

  	
  $

  	
  5,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Reinsurer’s Contract Year Terrorism Limit

  	
   

  	
  $

  	
  3,000,000

  	
   

  	
  $

  	
  5,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Annual Minimum Premium

  	
   

  	
  $

  	
  2,845,800

  	
   

  	
  $

  	
  734,400

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Premium Rate

  	
   

  	
  2.325

  	
  %

  	
  0.600

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Annual Deposit Premium

  	
   

  	
  $

  	
  3,557,200

  	
   

  	
  $

  	
  918,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quarterly Deposit Premium

  	
   

  	
  $

  	
  889,300

  	
   

  	
  $

  	
  229,500

  	
   

  

 

The figures listed above for each excess layer shall apply to each
Subscribing Reinsurer in the percentage share for that excess layer as
expressed in its Interests and Liabilities Agreement attached hereto.

 

 

Nuclear
Incident Exclusion Clause - Liability - Reinsurance (U.S.A.)

(Approved
by Lloyd’s Underwriters’ Fire and Non-Marine Association)

 

(1)          This reinsurance does not cover any loss or
liability accruing to the Reassured as a member of, or subscriber to, any
association of insurers or reinsurers formed for the purpose of covering
nuclear energy risks or as a direct or indirect reinsurer of any such member,
subscriber or association.

 

(2)          Without in any way restricting the operation
of paragraph (1) of this Clause it is understood and agreed that for all
purposes of this reinsurance all the original policies of the Reassured (new,
renewal and replacement) of the classes specified in Clause II of this
paragraph (2) from the time specified in Clause III in this paragraph (2) shall
be deemed to include the following provision (specified as the Limited
Exclusion Provision):

 

Limited Exclusion Provision.*

 

I.      It is agreed that the
policy does not apply under any liability coverage, to

(injury, sickness, disease, death or destruction

(bodily
injury or property damage

with
respect to which an insured under the policy is also an insured under a nuclear
energy liability policy issued by Nuclear Energy Liability Insurance Association,
Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of
Canada, or would be an insured under any such policy but for its termination
upon exhaustion of its limit of liability.

II.             Family Automobile Policies (liability only), Special
Automobile Policies (private passenger automobiles, liability only), Farmers
Comprehensive Personal Liability Policies (liability only), Comprehensive
Personal Liability Policies (liability only) or policies of a similar nature;
and the liability portion of combination forms related to the four classes of
policies stated above, such as the Comprehensive Dwelling Policy and the
applicable types of Homeowners Policies.

III.         The inception dates and thereafter of all
original policies as described in II above, whether new, renewal or
replacement, being policies which either

(a)          become effective on or after 1st May, 1960, or

(b)         become effective before that date and contain
the Limited Exclusion Provision set out above;

provided
this paragraph (2) shall not be applicable to Family Automobile Policies,
Special Automobile Policies, or policies or combination policies of a similar
nature, issued by the Reassured on New York risks, until 90 days following
approval of the Limited Exclusion Provision by the Governmental Authority
having jurisdiction thereof.

 

(3)          Except for those classes of policies specified
in Clause II of paragraph (2) and without in any way restricting the operation
of paragraph (1) of this Clause, it is understood and agreed that for all purposes
of this reinsurance the original liability policies of the Reassured (new,
renewal and replacement) affording the following coverages:

 

Owners,
Landlords and Tenants Liability, Contractual Liability, Elevator Liability,
Owners or Contractors (including railroad) Protective Liability, Manufacturers
and Contractors Liability, Product Liability, Professional and Malpractice
Liability, Storekeepers Liability, Garage Liability, Automobile Liability
(including Massachusetts Motor Vehicle or Garage Liability)

 

shall
be deemed to include, with respect to such coverages, from the time specified
in Clause V of this paragraph (3), the following provision (specified as the
Broad Exclusion Provision):

 

Broad Exclusion Provision.*

 

It
is agreed that the policy does not apply:

I.                 Under any Liability Coverage to

(injury, sickness, disease, death or destruction

(bodily
injury or property damage

(a)          with respect to which an insured under the
policy is also an insured under a nuclear energy liability policy issued by
Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability
Underwriters or Nuclear Insurance Association of Canada, or would be an insured
under any such policy but for its termination upon exhaustion of its limit of
liability; or

(b)         resulting from the
hazardous properties of nuclear material and with respect to which (1) any
person or organization is required to maintain financial protection pursuant to
the Atomic Energy Act of 1954, or any law amendatory thereof, or (2) the
insured is, or had this policy not been issued would be, entitled to indemnity
from the United States of America, or any agency thereof, under any agreement
entered into by the United States of America, or any agency thereof, with any
person or organization.

 

1

 

II.             Under any Medical Payments Coverage, or under
any Supplementary Payments Provision relating to

(immediate
medical or surgical relief

(first
aid,

to
expenses incurred with respect to

(bodily injury, sickness, disease or death

(bodily
injury

resulting
from the hazardous properties of nuclear material and arising out of the
operation of a nuclear facility by any person or organization.

III.         Under any Liability Coverage to

(injury, sickness, disease, death or destruction

(bodily
injury or property damage

resulting
from the hazardous properties of nuclear material, if

(a)          the nuclear material (1) is at any nuclear
facility owned by, or operated by or on behalf of, an insured or (2) has
been discharged or dispersed therefrom;

(b)         the nuclear material is contained in spent
fuel or waste at any time possessed, handled, used, processed, stored,
transported or disposed of by or on behalf of an insured; or

(c)          the

(injury, sickness, disease, death or destruction

(bodily
injury or property damage

 arises out of the furnishing by an insured of
services, materials, parts or equipment in connection with the planning,
construction, maintenance, operation or use of any nuclear facility, but if
such facility is located within the United States of America, its territories,
or possessions or Canada, this exclusion (c) applies only to

(injury to or destruction of property at such nuclear facility

(property
damage to such nuclear facility and any property thereat.

IV.         As used in this endorsement:

“hazardous
properties” include radioactive, toxic or explosive properties; “nuclear
material” means source material, special nuclear material or byproduct
material; “source material”, “special nuclear material”, and “byproduct
material” have the meanings given them in the Atomic Energy Act of 1954 or in
any law amendatory thereof; “spent fuel” means any fuel element or fuel
component, solid or liquid, which has been used or exposed to radiation in a
nuclear reactor; “waste” means any waste material (1) containing byproduct
material and (2) resulting from the operation by any person or
organization of any nuclear facility included within the definition of nuclear
facility under paragraph (a) or (b) thereof; “nuclear facility” means

(a)          any nuclear reactor,

(b)         any equipment or device designed or used for
(1) separating the isotopes of uranium or plutonium, (2) processing or
utilizing spent fuel, or (3) handling processing or packaging waste,

(c)          any equipment or device used for the
processing, fabricating or alloying of special nuclear material if at any time
the total amount of such material in the custody of the insured at the premises
where such equipment or device is located consists of or contains more than 25
grams of plutonium or uranium 233 or any combination thereof, or more than 250
grams of uranium 235,

(d)         any structure, basin, excavation, premises or
place prepared or used for the storage or disposal of waste, and includes the
site on which any of the foregoing is located, all operations conducted on such
site and all premises used for such operations; “nuclear reactor” means any
apparatus designed or used to sustain nuclear fission in a self-supporting
chain reaction or to contain a critical mass of fissionable material;

 (With respect
to injury to or destruction of property, the word “injury” or “destruction,”

 (“property damage” includes all
forms of radioactive contamination of property,

 (includes all
forms of radioactive contamination of property.

V.             The inception dates and thereafter of all
original policies affording coverages specified in this paragraph (3), whether
new, renewal or replacement, being policies which become effective on or after
1st May, 1960, provided this paragraph (3) shall not be applicable to

(i)             Garage and Automobile Policies issued by the
Reassured on New York risks, or

(ii)          statutory liability insurance required under
Chapter 90, General Laws of Massachusetts, until 90 days following
approval of the Broad Exclusion Provision by the Governmental Authority having
jurisdiction thereof.

(4)          Without in any way restricting the operation
of paragraph (1) of this Clause, it is understood and agreed that paragraphs
(2) and (3) above are not applicable to original liability policies of the
Reassured in Canada and that with respect to such policies this Clause shall be
deemed to include the Nuclear Energy Liability Exclusion Provisions adopted by
the Canadian Underwriters’ Association or the Independent Insurance Conference
of Canada.

 

*NOTE.     The words printed in italics in the Limited Exclusion Provision and in
the Broad Exclusion Provision shall apply only in relation to original
liability policies which include a Limited Exclusion Provision or a Broad
Exclusion Provision containing those words.

 

21/9/67

N.M.A. 1590

 

2

 

Nuclear
Incident Exclusion Clause Reinsurance - No. 4

 

(1)          This reinsurance does
not cover any loss or liability accruing to the Reassured as a member of, or
subscriber to, any association of insurers formed for the purpose of covering
nuclear energy risks or as a direct or indirect reinsurer of any such member,
subscriber or association.

 

(2)          Without in any way
restricting the operations of Nuclear Incident Exclusion Clause No. 1B -
Liability, No. 2 - Physical Damage, No. 3 - Boiler and Machinery and paragraph
(1) of this clause, it is understood and agreed that for all purposes as
respects the reinsurance assumed by the Reinsurer from the Reassured, all
original insurance policies or contracts of the Reassured (new, renewal and
replacement) shall be deemed to include the applicable existing Nuclear Clause
and/or Nuclear Exclusion Clause(s) in effect at the time and any subsequent
revisions thereto as agreed upon and approved by the Insurance Industry and/or
a qualified Advisory or Rating Bureau.

 

 

Pollution
Exclusion Clause - General Liability - Reinsurance

 

A.           This reinsurance
excludes all loss and/or liability accruing to the reinsured company as a
result of:

 

1.               bodily injury or
property damage arising out of the actual, alleged or threatened discharge,
dispersal, release or escape of pollutants:

 

a.               at or from premises
owned, rented or occupied by a named insured;

 

b.              at or from any site
or location used by or for a named insured or others for the handling, storage,
disposal, processing or treatment of waste;

 

c.               which are at any
time transported, handled, stored, treated, disposed of, or processed as waste
by or for a named insured or any person or organization for whom a named
insured may be legally responsible; or

 

d.              at or from any site
or location on which a named insured or any contractors or subcontractors
working directly or indirectly on behalf of a named insured are performing
operations:

 

(i)             if the pollutants are
brought on or to the site or location in connection with such operations; or

 

(ii)          if the operations are to
test for, monitor, clean up, remove, contain, treat, detoxify or neutralize the
pollutants;

 

2.               any governmental
direction or request that a named insured test for, monitor, clean up, remove,
contain, treat, detoxify or neutralize pollutants.

 

B.             Subparagraphs A(1)(a)
and A(1)(d)(i) above do not apply to bodily injury or property damage caused by
heat, smoke or fumes from a hostile fire.

 

C.             “Hostile fire” means
a fire which becomes uncontrollable or breaks out from where it was intended to
be.

 

D.            “Pollutants” means any
solid, liquid, gaseous or thermal irritant or contaminant, including smoke,
vapor, soot, fumes, acids, alkalis, chemicals and waste.  Waste includes material to be recycled,
reconditioned or reclaimed.

 

BRMA 39C

 

 

War
Risk Exclusion Clause (Reinsurance)

 

As regards interests which at time of loss or damage are on shore, no
liability shall attach hereto in respect of any loss or damage which is
occasioned by war, invasion, hostilities, acts of foreign enemies, civil war,
rebellion, insurrection, military or usurped power, or martial law or
confiscation by order of any government or public authority.

 

Nevertheless, this clause shall not be construed to apply to loss or
damage occasioned by riots, strikes, civil commotion, vandalism or malicious
damage.

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