Document:

EXHIBIT 10.6

AMENDMENT
TO CREDIT AGREEMENT

This AMENDMENT TO
CREDIT AGREEMENT (“Amendment”) is entered into as of April 24, 2007,
by USANA HEALTH SCIENCES, INC., a Utah corporation (together with its
successors, “Borrower”), and BANK OF AMERICA, N.A., a national banking
association (together with its successors and assigns, “Bank”).

RECITALS

A.            Borrower and Bank are parties to
that certain Credit Agreement dated as of June 16, 2004, as amended by
that certain Waiver and Amendment to Credit Agreement dated as of
February 2, 2006 and as amended by that certain Amendment to Credit
Agreement dated as of May 17, 2006 (as the same may be amended, modified
or extended from time to time, the “Credit Agreement”) and the related
Loan Documents described therein.

B.            Pursuant to the terms of the Credit
Agreement, Bank has made and does make available to Borrower a revolving line
of credit in the amount of $25,000,000, which amount, by agreement of Borrower
and Bank, could be increased to $40,000,000.

C.            Borrower has requested that Bank
increase the amount of the revolving line of credit to $40,000,000, which Bank
has agreed to do on the terms and conditions set forth in this Amendment.

NOW,
THEREFORE, in consideration of the foregoing, the mutual
covenants and agreements herein contained, and for other good and valuable
consideration receipt of which is hereby acknowledged, Borrower and Bank hereby
agree as follows:

1.             Definitions; Interpretation.  All capitalized terms used in this Amendment
and not otherwise defined herein have the meanings specified in the Credit
Agreement.  The rules of construction and
interpretation specified in Sections 1.02 and 1.05 of the
Credit Agreement also apply to this Amendment and are incorporated herein by
this reference.

2.             Amendments to Credit Agreement.  The Credit Agreement is amended as follows:

(a)           Amendment to Definitions.  In Section 1.01, amendments are
made to the definitions, as follows:

(i)            Commitment.  The definition of “Commitment” is amended and
restated to read as follows:

“Commitment” means
the obligation of Bank to make Loans and L/C Credit Extensions hereunder in an
aggregate principal amount at any one time not to exceed $40,000,000, as such
amount may be adjusted from time to time in accordance with this Agreement.

(b)           Deletion of Section 2.11.  Section 2.11 is hereby deleted.

(c)           Amendment to Section 6.12.  Subsection (b) of Section 6.12 is
hereby amended and restated to read as follows:

(b)           Minimum EBITDA.  Maintain on a consolidated basis, as of the
end of each fiscal quarter of Borrower, for the period of the four prior fiscal
quarters ending on such date, Consolidated EBITDA equal to or greater than
Fifty Million Dollars ($50,000,000).

(d)           Amendment to Schedule 5.06.  Schedule 5.06 is hereby amended
and restated as set forth in Schedule 5.06 attached hereto.

3.             Amendments to Note.  In the heading of the Note,
the reference to the amount of $25,000,000 is amended and restated to be a
reference to the amount of $40,000,000 and in the first paragraph of the Note,
the reference to the amount of Twenty-five Million Dollars ($25,000,000) is
amended and restated to be a reference to the amount of Forty Million Dollars
($40,000,000).

4.             Conditions to Effectiveness.  Notwithstanding anything contained herein to
the contrary, this Amendment shall become effective when each of the following
conditions is fully and simultaneously satisfied; provided that each
such condition is fully and simultaneously satisfied on or before
April 30, 2006:

(a)           Delivery of Amendment.  Borrower and Bank shall have executed and
delivered counterparts of this Amendment to each other;

(b)           Payment of Fees.  Borrower shall have paid to Bank an amendment
fee in the amount of Fifteen Thousand Dollars ($15,000) in respect of Bank’s
agreement to enter into this Amendment;

(c)           Confirmation of Guarantors.  Each Guarantor shall have executed and
delivered to Bank a Consent of Guarantors in the form of Annex 1
hereto;

(d)           Corporate Authority.  Bank shall have received such evidence of
corporate authority and action as Bank shall request demonstrating that the
execution, delivery and performance of this Amendment has been duly authorized
by Borrower;

(e)           Certificate of Responsible Officer.  Borrower shall deliver to Bank a certificate
signed by a Responsible Officer of Borrower certifying that, before and after
giving effect to such increase, (i) the representations and warranties
contained in Article V of the Credit Agreement and the other Loan
Documents are true and correct on and as of the date hereof, except to the
extent that such representations and warranties specifically refer to an
earlier date, in which case they are true and correct as of such earlier date,
and except that for purposes of such certificate, the representations and
warranties contained in subsections (a) and (b) of Section 5.05 of
the Credit Agreement shall be deemed to refer to the most recent statements
furnished pursuant to clauses (a) and (b), respectively, of Section 6.01
of the Credit Agreement, and (ii) no Default or Event of Default exists.

(f)            Representations True; No Default.  The representations of Borrower as set forth
in Article V of the Credit Agreement shall be true on and as of the
date of this Amendment with the same force and effect as if made on and as of
this date or, if any such representation or warranty is stated to have been
made as of or with respect to a specific date, as of or with respect to such
specific date.  No Event of Default and
no event which, with notice or lapse of time or both, would constitute an Event
of Default, shall have occurred and be continuing or will occur as a result of
the execution of this Amendment; and

(g)           Other Documents.  Bank shall have received such other
documents, instruments, and undertakings as Bank may reasonably request.

5.             Representations and Warranties.  Borrower hereby represents and warrants to
Bank that each of the representations and warranties set forth in Article V
of the Credit Agreement is true and correct as if made on and as of the date of
this Amendment or, if any such representation or warranty is stated to have
been made as of or with respect to a specific date, as of or with respect to
such specific date.  Borrower expressly
agrees that it shall be an additional Event of Default under the Credit
Agreement if any representation or warranty made by the Borrower hereunder
shall prove to have been incorrect in any material respect when made.

6.             No Further Amendment.  Except as expressly modified by this
Amendment, the Credit Agreement and the other Loan Documents shall remain
unmodified and in full force and effect and the parties hereby ratify their
respective obligations thereunder.

7.             Reservation of Rights.  Borrower acknowledges and agrees that the
execution and delivery by Bank of this Amendment shall not be deemed to create
a course of dealing or otherwise obligate Bank to forbear or execute similar
amendments under the same or similar circumstances in the future.

8.             Miscellaneous.

(a)           Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF WASHINGTON; PROVIDED
THAT BANK SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

(b)           Counterparts.  This Amendment may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

(c)           Integration.  This Amendment, together with the other Loan
Documents, comprises the complete, final and integrated agreement of the
parties on the subject matter hereof and thereof and supersedes all prior agreements,
written or oral, on such subject matter.

(d)           Severability.  Any provision of this Amendment that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions thereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

(e)           Oral Agreements.  ORAL AGREEMENTS OR ORAL COMMITMENTS
TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT
ARE NOT ENFORCEABLE UNDER WASHINGTON LAW.

IN
WITNESS WHEREOF, Borrower and Bank have caused this Amendment
to be duly executed as of the date first above written.

	
  

  	
  USANA HEALTH SCIENCES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gilbert A. Fuller

  
	
   

  	
  Name:

  	
  Gilbert A. Fuller

  
	
   

  	
  Title:

  	
  Exec. Vice Pres. and CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James J. Teichman

  
	
   

  	
  Name:

  	
  James J. Teichman

  
	
   

  	
  Title:

  	
  Vice PresidentExhibit
10.52

 

 

CREDIT
AGREEMENT

Dated as of May 2, 2007

between

NIC INC.,

as Borrower,

BANK OF
AMERICA, N.A.,

as Lender and L/C Issuer

 

 

TABLE OF CONTENTS

	
  Section

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I.

  	
   

  	
  DEFINITIONS AND ACCOUNTING TERMS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.01

  	
   

  	
  Defined Terms

  	
   

  	
  1

  
	
  1.02

  	
   

  	
  Other Interpretive Provisions

  	
   

  	
  17

  
	
  1.03

  	
   

  	
  Accounting Terms

  	
   

  	
  18

  
	
  1.04

  	
   

  	
  Rounding

  	
   

  	
  18

  
	
  1.05

  	
   

  	
  Times of Day

  	
   

  	
  18

  
	
  1.06

  	
   

  	
  Letter of Credit Amounts

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II.

  	
   

  	
  THE COMMITMENTS AND CREDIT EXTENSIONS

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.01

  	
   

  	
  Committed Loans

  	
   

  	
  19

  
	
  2.02

  	
   

  	
  Committed Borrowings, Conversions and Continuations
  of Committed Loans

  	
   

  	
  19

  
	
  2.03

  	
   

  	
  Letters of Credit

  	
   

  	
  20

  
	
  2.04

  	
   

  	
  Prepayments

  	
   

  	
  28

  
	
  2.05

  	
   

  	
  Termination or Reduction of Commitments

  	
   

  	
  28

  
	
  2.06

  	
   

  	
  Repayment of Loans

  	
   

  	
  28

  
	
  2.07

  	
   

  	
  Interest

  	
   

  	
  28

  
	
  2.08

  	
   

  	
  Fees

  	
   

  	
  29

  
	
  2.09

  	
   

  	
  Computation of Interest and Fees

  	
   

  	
  29

  
	
  2.10

  	
   

  	
  Evidence of Debt

  	
   

  	
  30

  
	
  2.11

  	
   

  	
  Payments Generally

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III.

  	
   

  	
  TAXES, YIELD PROTECTION AND ILLEGALITY

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.01

  	
   

  	
  Taxes

  	
   

  	
  31

  
	
  3.02

  	
   

  	
  Illegality

  	
   

  	
  32

  
	
  3.03

  	
   

  	
  Inability to Determine Rates

  	
   

  	
  32

  
	
  3.04

  	
   

  	
  Increased Costs

  	
   

  	
  32

  
	
  3.05

  	
   

  	
  Compensation for Losses

  	
   

  	
  34

  
	
  3.06

  	
   

  	
  Mitigation Obligations

  	
   

  	
  34

  
	
  3.07

  	
   

  	
  Survival

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV.

  	
   

  	
  CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.01

  	
   

  	
  Conditions of Initial Credit Extension

  	
   

  	
  35

  
	
  4.02

  	
   

  	
  Conditions to all Credit Extensions

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V.

  	
   

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.01

  	
   

  	
  Existence, Qualification and Power

  	
   

  	
  37

  
	
  5.02

  	
   

  	
  Authorization; No Contravention

  	
   

  	
  37

  
	
  5.03

  	
   

  	
  Governmental Authorization; Other Consents

  	
   

  	
  37

  
	
  5.04

  	
   

  	
  Binding Effect

  	
   

  	
  37

  
	
  5.05

  	
   

  	
  Financial Statements; No Material Adverse Effect; No
  Internal Control Event

  	
   

  	
  38

  

 

 i
 

 

	
  5.06

  	
   

  	
  Litigation

  	
   

  	
  38

  
	
  5.07

  	
   

  	
  No Default

  	
   

  	
  39

  
	
  5.08

  	
   

  	
  Ownership of Property; Liens

  	
   

  	
  39

  
	
  5.09

  	
   

  	
  Environmental Compliance

  	
   

  	
  39

  
	
  5.10

  	
   

  	
  Insurance

  	
   

  	
  39

  
	
  5.11

  	
   

  	
  Taxes

  	
   

  	
  39

  
	
  5.12

  	
   

  	
  ERISA Compliance

  	
   

  	
  39

  
	
  5.13

  	
   

  	
  Subsidiaries

  	
   

  	
  40

  
	
  5.14

  	
   

  	
  Margin Regulations; Investment Company Act; Public
  Utility Holding Company Act

  	
   

  	
  40

  
	
  5.15

  	
   

  	
  Disclosure

  	
   

  	
  41

  
	
  5.16

  	
   

  	
  Compliance with Laws

  	
   

  	
  41

  
	
  5.17

  	
   

  	
  Taxpayer Identification Number

  	
   

  	
  41

  
	
  5.18

  	
   

  	
  Intellectual Property; Licenses, Etc

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI.

  	
   

  	
  AFFIRMATIVE COVENANTS

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.01

  	
   

  	
  Financial Statements

  	
   

  	
  41

  
	
  6.02

  	
   

  	
  Certificates; Other Information

  	
   

  	
  42

  
	
  6.03

  	
   

  	
  Notices

  	
   

  	
  43

  
	
  6.04

  	
   

  	
  Payment of Obligations

  	
   

  	
  44

  
	
  6.05

  	
   

  	
  Preservation of Existence, Etc

  	
   

  	
  44

  
	
  6.06

  	
   

  	
  Maintenance of Properties

  	
   

  	
  44

  
	
  6.07

  	
   

  	
  Maintenance of Insurance

  	
   

  	
  44

  
	
  6.08

  	
   

  	
  Compliance with Laws

  	
   

  	
  44

  
	
  6.09

  	
   

  	
  Books and Records

  	
   

  	
  45

  
	
  6.10

  	
   

  	
  Inspection Rights

  	
   

  	
  45

  
	
  6.11

  	
   

  	
  Use of Proceeds

  	
   

  	
  45

  
	
  6.12

  	
   

  	
  Financial Covenants.

  	
   

  	
  45

  
	
  6.13

  	
   

  	
  Additional Guarantors

  	
   

  	
  46

  
	
  6.14

  	
   

  	
  Acquisitions

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII.

  	
   

  	
  NEGATIVE COVENANTS

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.01

  	
   

  	
  Liens

  	
   

  	
  46

  
	
  7.02

  	
   

  	
  Investments

  	
   

  	
  48

  
	
  7.03

  	
   

  	
  Indebtedness

  	
   

  	
  48

  
	
  7.04

  	
   

  	
  Fundamental Changes

  	
   

  	
  49

  
	
  7.05

  	
   

  	
  Dispositions

  	
   

  	
  50

  
	
  7.06

  	
   

  	
  Restricted Payments

  	
   

  	
  50

  
	
  7.07

  	
   

  	
  Change in Nature of Business

  	
   

  	
  51

  
	
  7.08

  	
   

  	
  Transactions with Affiliates

  	
   

  	
  51

  
	
  7.09

  	
   

  	
  Burdensome Agreements

  	
   

  	
  51

  
	
  7.10

  	
   

  	
  Use of Proceeds

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  	
  EVENTS OF DEFAULT AND REMEDIES

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.01

  	
   

  	
  Events of Default

  	
   

  	
  51

  
	
  8.02

  	
   

  	
  Remedies Upon Event of Default

  	
   

  	
  53

  
	
  8.03

  	
   

  	
  Application of Funds

  	
   

  	
  54

  

 

 ii
 

 

	
  ARTICLE IX.

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.01

  	
   

  	
  Amendments, Etc

  	
   

  	
  55

  
	
  9.02

  	
   

  	
  Notices; Effectiveness; Electronic Communications

  	
   

  	
  55

  
	
  9.03

  	
   

  	
  No Waiver; Cumulative Remedies

  	
   

  	
  57

  
	
  9.04

  	
   

  	
  Expenses; Indemnity; Damage Waiver

  	
   

  	
  57

  
	
  9.05

  	
   

  	
  Successors and Assigns

  	
   

  	
  58

  
	
  9.06

  	
   

  	
  Treatment of Certain Information; Confidentiality

  	
   

  	
  61

  
	
  9.07

  	
   

  	
  Right of Setoff

  	
   

  	
  62

  
	
  9.08

  	
   

  	
  Interest Rate Limitation

  	
   

  	
  62

  
	
  9.09

  	
   

  	
  Counterparts; Integration; Effectiveness

  	
   

  	
  63

  
	
  9.10

  	
   

  	
  Survival of Representations and Warranties

  	
   

  	
  63

  
	
  9.11

  	
   

  	
  Severability

  	
   

  	
  63

  
	
  9.12

  	
   

  	
  Governing Law; Jurisdiction; Etc

  	
   

  	
  63

  
	
  9.13

  	
   

  	
  Waiver of Jury Trial

  	
   

  	
  64

  
	
  9.14

  	
   

  	
  No Advisory or Fiduciary Responsibility

  	
   

  	
  65

  
	
  9.15

  	
   

  	
  USA PATRIOT Act Notice

  	
   

  	
  65

  
	
  9.16

  	
   

  	
  Time of the Essence

  	
   

  	
  65

  
	
  9.17

  	
   

  	
  No Oral Agreements

  	
   

  	
  65

  

 

SCHEDULES

	
  1.01

  	
   

  	
  Initial Guarantors

  	
   

  	
   

  
	
  2.01

  	
   

  	
  Commitment

  	
   

  	
   

  
	
  5.06

  	
   

  	
  Litigation

  	
   

  	
   

  
	
  5.09

  	
   

  	
  Environmental Matters

  	
   

  	
   

  
	
  5.13

  	
   

  	
  Subsidiaries and Other Equity Investments

  	
   

  	
   

  
	
  7.01

  	
   

  	
  Existing Liens

  	
   

  	
   

  
	
  7.03

  	
   

  	
  Existing Indebtedness

  	
   

  	
   

  
	
  9.02

  	
   

  	
  The Lender’s Office, Certain Addresses for Notices

  	
   

  	
   

  

 

EXHIBITS

	
  Form of

  	
   

  	
   

  	
   

  	
   

  
	
  A

  	
   

  	
  Committed Loan Notice

  	
   

  	
   

  
	
  B

  	
   

  	
  Note

  	
   

  	
   

  
	
  C

  	
   

  	
  Compliance Certificate

  	
   

  	
   

  

 

 iii

CREDIT AGREEMENT

CREDIT AGREEMENT
(this “Agreement”) is entered into as of May
2, 2007, between NIC INC., a Colorado corporation (“Borrower”) and BANK OF AMERICA, N.A.,
as the Lender (in such capacity, the “Lender”) and
L/C Issuer.

Borrower has requested that the Lender provide a
revolving credit facility, and the Lender is willing to do so on the terms and
conditions set forth herein.

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

ARTICLE
I.

DEFINITIONS
AND ACCOUNTING TERMS

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

“Acquisition”  means any transaction or series of related
transactions for the purpose of or resulting, directly or indirectly, in (a)
the  acquisition by  a Loan Party of all or substantially all of
the assets of a Person, or of any line of business or division of a Person, or
(b) the acquisition by a Loan Party of amore than of 50% of the Equity Interests
of any Person (other  than a Person that
is already a Subsidiary of such Loan Party), or otherwise causing any Person to
become a Subsidiary of such Loan Party, or (c) a merger or consolidation or any
other combination by a Loan Party with another Person (other than a Person that
is a Loan Party); provided that (i) the Loan Party is the surviving
entity or (ii) after giving effect to such merger or consolidation, such other
Person has become a Loan Party; provided  further that in no event
shall the formation or establishment of a Subsidiary that becomes a Loan Party
or the capitalization of or transfer to such Subsidiary that becomes a Loan
Party of any existing assets or business of any Loan Party constitute an
Acquisition.

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

“Agreement”
means this Credit Agreement.

“Applicable  Rate” means, from time to time, the following percentages
per annum, based upon the Leverage Ratio as set forth in the most recent
Compliance Certificate received by the Lender pursuant to Section
6.02(b):

 1
 

Applicable
Rate

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Eurodollar

  Rate +

  	
   

  	
  Base

  	
   

  
	
  Pricing

  Level

  	
   

  	
  Leverage

  Ratio

  	
   

  	
  Commitment

  Fee

  	
   

  	
  Letters of

  Credit

  	
   

  	
  Rate

  +

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  ≤1.25:1.00

  	
   

  	
  0.10

  	
  %

  	
  1.00

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  >1.25:1.00

  	
   

  	
  0.15

  	
  %

  	
  1.25

  	
  %

  	
  0

  	
   

  

Any increase or decrease
in the Applicable Rate resulting from a change in the Leverage Ratio shall
become effective commencing on the 5th Business Day immediately following the
date a Compliance Certificate is delivered pursuant to Section
6.02(b); provided, however, that if a Compliance
Certificate is not delivered when due in accordance with such Section, then
Pricing Level 2 shall apply commencing on the 5th Business Day following the
date such Compliance Certificate was required to have been delivered.  The Applicable Rate in effect from the
Closing Date through June 30, 2007 shall be determined based upon Pricing Level
1.

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

“Audited  Financial  Statements”
means the audited consolidated balance sheet of Borrower and its Subsidiaries
for the fiscal year ended December 31, 2005, and the related consolidated
statements of income or operations, shareholders’ equity and cash flows for
such fiscal year of Borrower and its Subsidiaries, including the notes thereto.

“Availability  Period” means the period from and including the Closing Date
to the earliest of (a) the Maturity Date, (b) the date of termination of the
Commitments pursuant to Section 2.05,
and (c) the date of termination of the commitment of the Lender to make Loans
and of the obligation of the L/C Issuer to make L/C Credit Extensions pursuant
to Section 8.02.

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

 2
 

“Base  Rate” means for any day a fluctuating rate per annum equal
to the higher of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of
interest in effect for such day as publicly announced from time to time by Bank
of America as its “prime rate.”  The “prime
rate” is a rate set by Bank of America based upon various factors including
Bank of America’s costs and desired return, general economic conditions and
other factors, and is used as a reference point for pricing some loans, which
may be priced at, above, or below such announced rate.  Any change in such rate announced by Bank of
America shall take effect at the opening of business on the day specified in
the public announcement of such change.

“Base Rate Committed Loan”
means a Committed Loan that is a Base Rate Loan.

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

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

“Borrower  Materials” has the means information provided by or on
behalf of Borrower hereunder.

“Business  Day” means any day other than a Saturday, Sunday or other
day on which commercial banks are authorized to close under the Laws of, or are
in fact closed in, the state where Lender’s Office is located and, if such day
relates to any Eurodollar Rate Loan, means any such day on which dealings in
Dollar deposits are conducted by and between banks in the London interbank
eurodollar market.

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

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

“Change of Control”
means, with respect to any Person, an event or series of events by which:

(a)           any “person” or “group”
(as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, but excluding any employee benefit plan of such person or its
subsidiaries, and any person or entity acting in its capacity as trustee, agent
or other fiduciary or administrator of any such plan) becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act
of 1934, except that a person or group shall be deemed to have “beneficial
ownership” of all securities that such person or group has the right to
acquire, whether such right is exercisable immediately or only after the
passage of time (such right, an “option right”)), directly or indirectly, of
50% or more of the equity securities of such Person entitled to vote for
members of the board of directors or equivalent governing body of such Person
on a fully-diluted basis (and taking into account all such securities that such
person or group has the right to acquire pursuant to any option right);

 3
 

(b)           during any period of 24
consecutive months, a majority of the members of the board of directors or
other equivalent governing body of such Person cease to be composed of
individuals (i) who were members of that board or equivalent governing body on
the first day of such period, (ii) whose election or nomination to that board
or equivalent governing body was approved by individuals referred to in clause
(i) above constituting at the time of such election or nomination at least a
majority of that board or equivalent governing body or (iii) whose election or
nomination to that board or other equivalent governing body was approved by
individuals referred to in clauses (i) and (ii) above constituting at the time
of such election or nomination at least a majority of that board or equivalent
governing body (excluding, in the case of both clause (ii) and clause (iii),
any individual whose initial nomination for, or assumption of office as, a
member of that board or equivalent governing body occurs as a result of an
actual or threatened solicitation of proxies or consents for the election or
removal of one or more directors by any person or group other than a
solicitation for the election of one or more directors by or on behalf of the
board of directors); or

(c)           any individual(s) or
entity(s) acting in concert shall have acquired by contract or otherwise, or
shall have entered into a contract or arrangement that, upon consummation
thereof, will result in its or their acquisition of the power to exercise,
directly or indirectly, a controlling influence over the management or policies
of such Person, or control over the equity securities of such Person entitled
to vote for members of the board of directors or equivalent governing body of
such Person on a fully-diluted basis (and taking into account all such securities
that such individual(s) or entity(s)  or
group has the right to acquire pursuant to any option right) representing 50%
or more of the combined voting power of such securities.

“Closing  Date” means the first date all the conditions precedent in Section 4.01 are satisfied or waived in accordance with Section 9.01.

“Code” means the
Internal Revenue Code of 1986.

“Commitment”
means the Lender’s obligation to (a) make Committed Loans to Borrower pursuant
to Section 2.01, and (b) purchase
participations in L/C Obligations, in an aggregate principal amount at any one
time outstanding not to exceed the amount set forth opposite the Lender’s name
on Schedule 2.01, as such amount may be
adjusted from time to time in accordance with this Agreement.

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

“Committed  Loan” has the meaning specified in Section 2.01.

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

“Compliance Certificate”
means a certificate substantially in the form of Exhibit C.

 4
 

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

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

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

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

“Default” means
any event or condition that constitutes an Event of Default or that, with the
giving of any notice, the passage of time, or both, would be an Event of
Default.

“Default  Rate” means (a) when used with respect to Obligations other
than L/C Fees an interest rate equal to (i) the Base Rate plus
(ii) the Applicable Rate, if any, applicable to Base Rate Loans plus (iii) 2% per annum; provided, however,
that with respect to a Eurodollar Rate Loan, the Default Rate shall be an
interest rate equal to the interest rate (including any Applicable Rate)
otherwise applicable to such Loan plus 2% per annum, and (b) when used with respect
to L/C Fees, a rate equal to the Applicable Rate plus 2% per annum.

“Disposition” or
“Dispose” means the sale, transfer,
license, lease or other disposition (including any sale and leaseback
transaction) of any property by any Person, including any sale, assignment,
transfer or other disposal, with or without recourse, of any notes or accounts
receivable or any rights and claims associated therewith.

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

“EBITDA” means,
for any period, an amount equal to net income for such period (less income or
plus loss for such period from discontinued operations and extraordinary items)
plus (i) amounts deducted in the
computation thereof for (a) income taxes, (b) interest expense, (c)
depreciation, depletion or amortization and (d) other non-cash expenses, losses
or charges (including, without limitation, non-cash expenses for recognized
pursuant to Financial Accounting Standards Board Statement No. 123(R)
(Share-Based Payments), but excluding any accounts receivable or inventory
write-offs); provided that if any such non-cash expense becomes a cash charge
in a future period, EBITDA will be adjusted by the amount of such cash charge,
and minus (ii) all non-cash items added in
the computation thereof.

“Environmental  Laws” means any and all Federal, state, local, and foreign
statutes, laws, regulations, ordinances, rules, judgments, orders, decrees,
permits, concessions, grants, franchises, licenses, agreements or governmental
restrictions relating to pollution and the

 5
 

protection of the
environment or the release of any materials into the environment, including
those related to hazardous substances or wastes, air emissions and discharges
to waste or public systems.

“Environmental  Liability” means any liability, contingent or otherwise
(including any liability for damages, costs of environmental remediation,
fines, penalties or indemnities), of Borrower, any other Loan Party or any of
their respective Subsidiaries 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, with respect to any Person, all of the
shares of capital stock of (or other ownership or profit interests in) such
Person, all of the warrants, options or other rights for the purchase or
acquisition from such Person of shares of capital stock of (or other ownership
or profit interests in) such Person, all of the securities convertible into or
exchangeable for shares of capital stock of (or other ownership or profit
interests in) such Person or warrants, rights or options for the purchase or
acquisition from such Person of such shares (or such other interests), and all
of the other ownership or profit interests in such Person (including
partnership, member or trust interests therein), whether voting or nonvoting,
and whether or not such shares, warrants, options, rights or other interests
are outstanding on any date of determination.

“ERISA” means
the Employee Retirement Income Security Act of 1974.

“ERISA  Affiliate” means any trade or business (whether or not
incorporated) under common control with Borrower within the meaning of Section
414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes
of provisions relating to Section 412 of the Code).

“ERISA  Event” means (a) a Reportable Event with respect to a
Pension Plan; (b) a withdrawal by Borrower or any ERISA Affiliate from a
Pension Plan subject to Section 4063 of ERISA during a plan year in which it
was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a
cessation of operations that is treated as such a withdrawal under Section
4062(e) of ERISA; (c) a complete or partial withdrawal by Borrower or any ERISA
Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan
is in reorganization; (d) the filing of a notice of intent to terminate, the
treatment of a Plan amendment as a termination under Section 4041 or 4041A of
ERISA, or the commencement of proceedings by the PBGC to terminate a Pension
Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds
under Section 4042 of ERISA for the termination of, or the appointment of a
trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the
imposition of any liability under Title IV of ERISA, other than for PBGC
premiums due but not delinquent under Section 4007 of ERISA, upon Borrower or
any ERISA Affiliate.

“Eurodollar  Base  Rate” has the
meaning specified in the definition of Eurodollar Rate.

 6
 

“Eurodollar  Rate” means for any Interest Period with respect to a
Eurodollar Rate Loan, a rate per annum determined by the Lender pursuant to the
following formula:

	
  Eurodollar

  	
   

  	
  Eurodollar Base
  Rate

  
	
  Rate  =

  	
   

  	
  1.00 –
  Eurodollar Reserve

  Percentage

  

Where,

“Eurodollar Base Rate” means, for such Interest Period the rate
per annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”),
as published by Reuters (or other commercially available source providing
quotations of BBA LIBOR as designated by the Lender from time to time) at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, for Dollar deposits (for delivery on the
first day of such Interest Period) with a term equivalent to such Interest
Period.  If such rate is not available at
such time for any reason, then the “Eurodollar Base Rate” for such
Interest Period shall be the rate per annum determined by the Lender to be the
rate at which deposits in Dollars for delivery on the first day of such
Interest Period in same day funds in the approximate amount of the Eurodollar
Rate Loan being made, continued or converted by Bank of America and with a term
equivalent to such Interest Period would be offered by Bank of America’s London
Branch to major banks in the London interbank eurodollar market at their
request at approximately 11:00 a.m. (London time) two Business Days prior to
the commencement of such Interest Period.

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

“Eurodollar  Rate  Loan” means a
Committed Loan that bears interest at a rate based on the Eurodollar Rate.

“Event  of  Default” has
the meaning specified in Section 8.01.

“Excluded  Taxes” means, with respect to the Lender, the L/C Issuer or
any other recipient of any payment to be made by or on account of any
obligation of Borrower hereunder, (a) taxes imposed on or measured by its
overall net income (however denominated), and franchise taxes imposed on it (in
lieu of net income taxes), by the jurisdiction (or any political subdivision
thereof) under the laws of which such recipient is organized or in which its
principal office is located or, in the case of the Lender, in which its
applicable Lending Office is located,

 7
 

and (b) any branch
profits taxes imposed by the United States or any similar tax imposed by any
other jurisdiction in which Borrower is located.

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

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

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

“GAAP” means
generally accepted accounting principles in the United States set forth in the
opinions and pronouncements of the Accounting Principles Board and the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or such other principles as may be
approved by a significant segment of the accounting profession in the United
States, that are applicable to the circumstances as of the date of
determination, consistently applied.

“Governmental  Authority” means the government of the United States or any
other nation, or of any political subdivision thereof, whether state or local,
and any agency, authority, instrumentality, regulatory body, court, central
bank or other entity exercising executive, legislative, judicial, taxing,
regulatory or administrative powers or functions of or pertaining to government
(including any supra-national bodies such as the European Union or the European
Central Bank).

“Guarantee”
means, as to any Person, any (a) any obligation, contingent or otherwise, of
such Person guaranteeing or having the economic effect of guaranteeing any
Indebtedness or other obligation payable or performable by another Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any
obligation of such Person, direct or indirect, (i) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation, (ii) to purchase or lease property, securities or services
for the purpose of assuring the obligee in respect of such Indebtedness or
other obligation of the payment or performance of such Indebtedness or other
obligation, (iii) to maintain working capital, equity capital or any other
financial statement condition or liquidity or level of income or cash flow of
the primary obligor so as to enable the primary obligor to pay such
Indebtedness or other obligation, or (iv) entered into for the purpose of
assuring in any other manner the obligee

 8
 

in respect of such
Indebtedness or other obligation of the payment or performance thereof or to
protect such obligee against loss in respect thereof (in whole or in part), or
(b) any Lien on any assets of such Person securing any Indebtedness or other
obligation of any other Person, whether or not such Indebtedness or other
obligation is assumed by such Person (or any right, contingent or otherwise, of
any holder of such Indebtedness to obtain any such Lien); provided, that “Guarantee”
shall not include obligations relating to the endorsement of checks, drafts or
other items for collection in the ordinary course of business.  The amount of any Guarantee shall be deemed
to be an amount equal to the stated or determinable amount of the related
primary obligation, or portion thereof, in respect of which such Guarantee is
made or, if not stated or determinable, the maximum reasonably anticipated
liability in respect thereof as determined by the guaranteeing Person in good
faith.  The term “Guarantee” as a verb
has a corresponding meaning.

“Guarantor”
means, collectively, collectively, (a)the initial Guarantors listed on Schedule
1.01; (b) each Material Subsidiary that hereafter becomes a party to the
Guaranty in accordance with Section 6.13;
and (c) each Non-Material Subsidiary that now or hereafter elects to become a
party to the Guaranty provided that such Non-Material Subsidiary delivers to
the Lender documents of the types referred to in clauses (iii) and (iv) of Section 4.01(a) and favorable opinions of counsel to such
Non-Material Subsidiary (which shall cover, among other things, the legality,
validity, binding effect and enforceability of the Guaranty), all in form,
content and scope reasonably satisfactory to the Lender.

“Guaranty” means
the Guaranty made by the Guarantors in favor of the Lender, in form and
substance satisfactory to the Lender.

“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.

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

(a)           all obligations of such
Person for borrowed money and all obligations of such Person evidenced by
bonds, debentures, notes, loan agreements or other similar instruments;

(b)           all direct or
contingent obligations of such Person arising under letters of credit
(including standby and commercial), bankers’ acceptances, bank guaranties,
surety bonds and similar instruments;

(c)           net obligations of such
Person under any Swap Contract;

(d)           all obligations of such
Person to pay the deferred purchase price of property or services (other than
(i) trade accounts payable in the ordinary course of business and, in each
case, not past due for more than 60 days after the due date that was set when
such trade payable or account payable was created or (ii) expenses accrued in
the ordinary course of business);

 9
 

(e)           indebtedness (excluding
prepaid interest thereon) secured by a Lien on property owned or being
purchased by such Person (including indebtedness arising under conditional
sales or other title retention agreements), whether or not such indebtedness
shall have been assumed by such Person or is limited in recourse;

(f)            capital leases and
Synthetic Lease Obligations;

(g)           all obligations of such
Person to purchase, redeem, retire, defease or otherwise make any payment in
respect of any Equity Interest in such Person or any other Person, valued, in
the case of a redeemable preferred interest, at the greater of its voluntary or
involuntary liquidation preference plus accrued and unpaid dividends;
and

(h)           all Guarantees of such
Person in respect of any of the foregoing.

For all purposes hereof, the Indebtedness of any
Person shall include the Indebtedness of any partnership or joint venture
(other than a joint venture that is itself a corporation or limited liability
company) in which such Person is a general partner or a joint venturer, unless
such Indebtedness is expressly made non-recourse to such Person.  The amount of any net obligation under any
Swap Contract on any date shall be deemed to be the Swap Termination Value
thereof as of such date.  The amount of
any capital lease or Synthetic Lease Obligation as of any date shall be deemed
to be the amount of Attributable Indebtedness in respect thereof as of such
date.

“Indemnified Taxes”
means Taxes other than Excluded Taxes.

“Indemnitees”
has the meaning specified in Section 9.04(b).

“Information”
has the meaning specified in Section 9.07.

“Interest  Payment  Date” means,
(a) as to any Loan other than a Base Rate Loan, the last day of each Interest
Period applicable to such Loan and the Maturity Date; and (b) as to any Base Rate
Loan, the last Business Day of each March, June, September and December and the
Maturity Date.

“Interest  Period” means, as to each Eurodollar Rate Loan, the period
commencing on the date such Eurodollar Rate Loan is disbursed or converted to
or continued as a Eurodollar Rate Loan and ending on the date one, two or three
months thereafter, as selected by Borrower in its Committed Loan Notice; provided
that:

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

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

 10
 

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

“Internal  Control  Event” means a
material weakness in, or fraud that involves management or other employees who
have a significant role in, Borrower’s internal controls over financial
reporting, in each case as described in the Securities Laws.

“Investment”
means, as to any Person, any direct or indirect acquisition or investment by
such Person, whether by means of (a) the purchase or other acquisition of
capital stock or other securities of another Person, (b) a loan, advance or
capital contribution to, Guarantee or assumption of debt of, or purchase or
other acquisition of any other debt or equity participation or interest in,
another Person, including any partnership or joint venture interest in such
other Person and any arrangement pursuant to which the investor Guarantees
Indebtedness of such other Person, or (c) the purchase or other acquisition (in
one transaction or a series of transactions) of assets of another Person that
constitute a business unit.  For purposes
of covenant compliance, the amount of any Investment shall be the amount
actually invested, without adjustment for subsequent increases or decreases in
the value of such Investment.

“IRS” means the
United States Internal Revenue Service.

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

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

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

“L/C Advance”
means the Lender’s funding of its participation in any L/C Borrowing.

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

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

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

 11
 

“L/C Expiration Date”
means the day that is 365 days after the Maturity Date then in effect (or, if
such day is not a Business Day, the next preceding Business Day).

“L/C Fee” has
the meaning specified in Section 2.03(i).

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

“L/C Obligations”
means, as at any date of determination, the aggregate amount available to be
drawn under all outstanding Letters of Credit plus
the aggregate of all Unreimbursed Amounts, including all L/C Borrowings.  For purposes of computing the amount available
to be drawn under any Letter of Credit, the amount of such Letter of Credit
shall be determined in accordance with Section 1.06.  For all purposes of this Agreement, if on any
date of determination a Letter of Credit has expired by its terms but any amount
may still be drawn thereunder by reason of the operation of Rule 3.14 of the
ISP, such Letter of Credit shall be deemed to be “outstanding” in the amount so
remaining available to be drawn.

“L/C Sublimit”
means an amount equal to $5,000,000.00. 
The L/C Sublimit is part of, and not in addition to, the Commitments.

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

“Lending  Office” means the office or offices of the Lender described
as such in Schedule 10.2, or such other
office or offices as the Lender may from time to time notify Borrower.

“Letter  of  Credit” means
any standby letter of credit issued hereunder.

“Leverage Ratio”
means, as of any date of determination, the ratio of (a) Total Funded Debt as
of such date to (b) EBITDA for the period of the 12 months then ended.

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

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

“Loan  Documents” means this Agreement, the Note, each Issuer
Document and the Guaranty.

“Loan  Parties” means, collectively, Borrower and each Person
(other than the Lender or the L/C Issuer) executing a Loan Document including,
without limitation, each Guarantor.

 12
 

“Material  Adverse  Effect” means
(a) a material adverse change in, or a material adverse effect upon, the
operations, business, properties, liabilities (actual or contingent) or
condition (financial or otherwise) or prospects of Borrower and its
Subsidiaries taken as a whole; (b) a material impairment of the ability of the
Borrower or any Material Subsidiary to perform its obligations under any Loan
Document to which it is a party; or (c) a material adverse effect upon the
legality, validity, binding effect or enforceability against any Loan Party of
any Loan Document to which it is a party.

“Material Subsidiary”
means a Subsidiary other than a Non-Material Subsidiary.

“Maturity  Date” means May 1, 2009; provided, however, that if such
date is not a Business Day, the Maturity Date shall be the next preceding
Business Day.

“Multiemployer  Plan” means any employee benefit plan of the type described
in Section 4001(a)(3) of ERISA, to which Borrower or any ERISA Affiliate makes
or is obligated to make contributions, or during the preceding five plan years,
has made or been obligated to make contributions.

“Non-Material Subsidiary”
means a Subsidiary that (a) at no time during the then current fiscal year or
the two then preceding fiscal years of the Borrower, constituted more than
three percent (3%) of consolidated total assets (as shown on the Borrower’s
consolidated balance sheet) or (b) accounted for no more than three percent
(3%) of the gross revenues of the Borrower and its Subsidiaries, determined on
a consolidated basis, in respect of any one or more of the then preceding
twelve (12) fiscal quarters of the Borrower or (c) accounted for no more than
three percent (3%) of the EBITDA of the Borrower and its Subsidiaries,
determined on a consolidated basis, in respect of any one or more of the then
preceding twelve (12) fiscal quarters of the Borrower or (d) accounted for no
more than three percent (3%) of the net income of the Borrower and its
Subsidiaries, determined on a consolidated basis, in respect of any one or more
of the then preceding twelve (12) fiscal quarters of the Borrower.

“Note” means a
promissory note made by Borrower in favor of the Lender evidencing Loans made
by the Lender, substantially in the form of Exhibit B.

“Obligations”
means all advances to, and debts, liabilities, obligations, covenants and
duties of, any Loan Party arising under any Loan Document or otherwise with
respect to any Loan or Letter of Credit, whether direct or indirect (including
those acquired by assumption), absolute or contingent, due or to become due,
now existing or hereafter arising and including interest and fees that accrue
after the commencement by or against any Loan Party or any Affiliate thereof of
any proceeding under any Debtor Relief Laws naming such Person as the debtor in
such proceeding, regardless of whether such interest and fees are allowed
claims in such proceeding.

“Organization  Documents” means, (a) with respect to any corporation, the
certificate or articles of incorporation and the bylaws (or equivalent or
comparable constitutive documents with respect to any non-U.S. jurisdiction);
(b) with respect to any limited liability company, the certificate or articles
of formation or organization and operating agreement; (c) with respect to any
series of a limited liability company the certificate of designation and
operating agreement

 13
 

and (d) with respect to
any partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation or
organization and any agreement, instrument, filing or notice with respect
thereto filed in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its formation or
organization and, if applicable, any certificate or articles of formation or
organization of such entity.

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

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

“Participant”
has the meaning specified in Section 9.06(d).

“PBGC” means the
Pension Benefit Guaranty Corporation.

“PCAOB” means
the Public Company Accounting Oversight Board.

“Pension  Plan” means any “employee pension benefit plan” (as such
term is defined in Section 3(2) of ERISA), other than a Multiemployer Plan,
that is subject to Title IV of ERISA and is sponsored or maintained by Borrower
or any ERISA Affiliate or to which Borrower or any ERISA Affiliate contributes
or has an obligation to contribute, or in the case of a multiple employer or
other plan described in Section 4064(a) of ERISA, has made contributions at any
time during the immediately preceding five plan years.

“Permitted Acquisition”
means an Acquisition by the Borrower or any other Loan Party of Persons and/ or
assets where (i) no Default or Event of Default exists either before or after
the proposed Permitted Acquisition, and (ii) the Persons or assets to be
acquired are in (or used in) a business substantially related or incidental to
those lines of business conducted by the Borrower and its Subsidiaries and the
prior, effective written consent or approval of such Acquisition by the board
of directors, executive committee or equivalent governing body, or the
stockholders, as appropriate, of the other party or parties has been obtained,
and would not be perceived by the Person or assets to be acquired as hostile in
nature; provided, that, without the prior written consent of the Lender, the
purchase price of any Acquisition (including assumed liabilities in connection
with such Acquisition) will not exceed $3,000,000, and the aggregate purchase
price of all Acquisitions until the Maturity Date (including assumed
liabilities in connection with such Acquisitions) will not exceed $10,000,000.

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

 14
 

“Plan” means any
“employee benefit plan” (as such term is defined in Section 3(3) of ERISA)
established by Borrower or, with respect to any such plan that is subject to
Section 412 of the Code or Title IV of ERISA, any ERISA Affiliate.

“Platform” means
IntraLinks or another similar electronic system.

“Register” has
the meaning specified in Section 9.06(c).

“Registered Public
Accounting Firm” has the meaning specified in the Securities Laws
and shall be independent of Borrower as prescribed by the Securities Laws.

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

“Reportable Event”
means any of the events set forth in Section 4043(c) of ERISA, other than
events for which the 30 day notice period has been waived.

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

“Responsible  Officer” means the chief executive officer, president, chief
financial officer, treasurer  and, solely
for purposes of notices given pursuant to Article II, any
other officer or employee of the applicable Loan Party so designated by any of
the foregoing officers in a notice to the Lender.  Any document delivered hereunder that is
signed by a Responsible Officer of a Loan Party shall be conclusively presumed
to have been authorized by all necessary corporate, partnership and/or other
action on the part of such Loan Party and such Responsible Officer shall be
conclusively presumed to have acted on behalf of such Loan Party.

“Restricted  Payment” means any dividend or other distribution (whether
in cash, securities or other property) with respect to any capital stock or
other Equity Interest of 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 capital stock or other Equity Interest
or on account of any return of capital to Borrower’s stockholders, partners or
members (or the equivalent Person thereof).

“Restricted
Subsidiary” means a Subsidiary that is not a Guarantor.

“Sarbanes-Oxley”
means the Sarbanes-Oxley Act of 2002.

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

“Securities Laws”
means the Securities Act of 1933, the Securities Exchange Act of 1934,
Sarbanes-Oxley and the applicable accounting and auditing principles, rules,
standards and practices promulgated, approved or incorporated by the SEC or the
PCAOB.

 15
 

“Subordinated Liabilities”
means liabilities subordinated to the Obligations in a manner reasonably
acceptable to the Lender.

“Subsidiary” of
a Person means a corporation, partnership, joint venture, limited liability
company, series of a limited liability company or other business entity of
which a majority of the shares of securities or other interests having ordinary
voting power for the election of directors or other governing body (other than
securities or interests having such power only by reason of the happening of a
contingency) are at the time beneficially owned, or the management of which is
otherwise controlled, directly, or indirectly through one or more
intermediaries, or both, by such Person. 
Unless otherwise specified, all references herein to a “Subsidiary” or
to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of Borrower.

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

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

“Synthetic Lease Obligation”
means the monetary obligation of a Person under (a) a so-called synthetic,
off-balance sheet or tax retention lease, or (b) an agreement for the use or
possession of property creating obligations that do not appear on the balance
sheet of such Person but which, upon the insolvency or bankruptcy of such
Person, would be characterized as the indebtedness of such Person (without
regard to accounting treatment).

“Tangible Net Worth”
means the value of total assets (including leaseholds and leasehold
improvements and reserves against assets but excluding goodwill, patents,
trademarks, trade names, organization expense, unamortized debt discount and
expense, capitalized or deferred research and development costs, deferred
marketing expenses, and other like

 16
 

intangibles, and monies
due from Affiliates, officers, directors, employees, shareholders, members or managers)
less Total Liabilities, including but not limited to accrued and deferred
income taxes, but excluding the non-current portion of Subordinated
Liabilities.

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

“Threshold Amount” means  $1,000,000.

“Total Funded  Debt” means all outstanding Indebtedness.

“Total  Liabilities” means the sum of current liabilities plus long
term liabilities.

“Total  Outstandings” means the aggregate Outstanding Amount of all
Loans and all L/C Obligations.

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

“Unfunded  Pension  Liability”
means the excess of a Pension Plan’s benefit liabilities under Section
4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets,
determined in accordance with the assumptions used for funding the Pension Plan
pursuant to Section 412 of the Code for the applicable plan year.

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

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

1.02        Other Interpretive
Provisions.  With reference to this
Agreement and each other Loan Document, unless otherwise specified herein or in
such other Loan Document:

(a)           The
definitions of terms herein shall apply equally to the singular and plural
forms of the terms defined.  Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms.  The words “include,”
“includes” and “including” shall be deemed to be followed by the
phrase “without limitation.”  The word “will”
shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise, (i)
any definition of or reference to any agreement, instrument or other document
(including any Organization Document) shall be construed as referring to such
agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein or in any other Loan
Document), (ii) any reference herein to any Person shall be construed to
include such Person’s successors and assigns, (iii) the words “herein,” “hereof”
and “hereunder,” and words of similar import when used in any Loan
Document, shall be construed to refer to such Loan Document in its entirety and
not to any particular provision thereof, (iv) all references in a Loan Document
to Articles, Sections, Exhibits and Schedules shall be construed to refer to
Articles and Sections of, and Exhibits and Schedules to, the Loan Document in
which such references appear, (v) any reference to any law shall include all
statutory and regulatory provisions

 17
 

consolidating, amending, replacing or interpreting such law and any
reference to any law or regulation shall, unless otherwise specified, refer to
such law or regulation as amended, modified or supplemented from time to time,
and (vi) the words “asset” and “property” shall be construed to
have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, securities, accounts and
contract rights.

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

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

1.03        Accounting Terms.  (a)  Generally.  All accounting terms not specifically or
completely defined herein shall be construed in conformity with, and all
financial data (including financial ratios and other financial calculations)
required to be submitted pursuant to this Agreement shall be prepared in
conformity with, GAAP applied on a consistent basis, as in effect from time to
time, applied in a manner consistent with that used in preparing the Audited
Financial Statements, except as otherwise specifically prescribed herein.

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

(c)           Consolidation
of Variable Interest Entities.  All
references herein to consolidated financial statements of Borrower and its
Subsidiaries or to the determination of any amount for Borrower and its
Subsidiaries on a consolidated basis or any similar reference shall, in each
case, be deemed to include each variable interest entity that Borrower is
required to consolidate pursuant to FASB Interpretation No. 46 — Consolidation
of Variable Interest Entities: an interpretation of ARB No. 51 (January 2003)
as if such variable interest entity were a Subsidiary as defined herein.

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

1.05        Times of Day.  Unless otherwise specified, all references
herein to times of day shall be references to Central time (daylight saving or
standard, as applicable).

 18

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

ARTICLE
II.

THE COMMITMENTS AND CREDIT EXTENSIONS

2.01        Committed Loans.  Subject to the terms and conditions set forth
herein, the Lender agrees to make loans (each such loan, a “Committed  Loan”)
to Borrower from time to time, on any Business Day during the Availability
Period, in an aggregate amount not to exceed at any time outstanding the amount
of the Commitment; provided, however, that after giving effect to any Committed
Borrowing, the Total Outstandings shall not exceed the Commitment.  Within the limits of the Commitment, and
subject to the other terms and conditions hereof, Borrower may borrow under
this Section 2.01, prepay under Section 2.04 and reborrow under this Section 2.01.  Committed Loans may be Base Rate Loans or
Eurodollar Rate Loans, as further provided herein.

2.02        Committed Borrowings,
Conversions and Continuations of Committed Loans.  (a)  Each Committed Borrowing, each
conversion of Committed Loans from one Type to the other, and each continuation
of Eurodollar Rate Loans shall be made upon Borrower’s irrevocable notice to
the Lender, which may be given by telephone. 
Each such notice must be received by the Lender not later than 11:00
a.m. (i) three Business Days prior to the requested date of any Committed
Borrowing of, conversion to or continuation of Eurodollar Rate Loans or of any
conversion of Eurodollar Rate Loans to Base Rate Committed Loans, and (ii) on
the requested date of any Committed Borrowing of Base Rate Committed
Loans.  Each telephonic notice by
Borrower pursuant to this Section 2.02(a)
must be confirmed promptly by delivery to the Lender of a written Committed
Loan Notice, appropriately completed and signed by a Responsible Officer of
Borrower.  Each Committed Borrowing of,
conversion to or continuation of Eurodollar Rate Loans shall be in a principal
amount of $1,000,000 or a whole multiple of $250,000 in excess thereof.  Except as provided in Section 2.03(c), each Committed Borrowing
of or conversion to Base Rate Committed Loans shall be in a principal amount of
$500,000 or a whole multiple of $100,000 in excess thereof.  Each Committed Loan Notice (whether
telephonic or written) shall specify (i) whether Borrower is requesting a
Committed Borrowing, a conversion of Committed Loans from one Type to the
other, or a continuation of Eurodollar Rate Loans, (ii) the requested date of
the Committed Borrowing, conversion or continuation, as the case may be (which
shall be a Business Day), (iii) the principal amount of Committed Loans to be
borrowed, converted or continued, (iv) the Type of Committed Loans to be
borrowed or to which existing Committed Loans are to be converted, and (v) if
applicable, the duration of the Interest Period with respect thereto.  If Borrower fails to specify a Type of
Committed Loan in a Committed Loan Notice or if Borrower fails to give a timely
notice requesting a conversion or continuation, then the applicable Committed
Loans shall be made as, or converted to, Base Rate Loans.  Any such automatic conversion to Base Rate
Loans shall be effective as of the last day of

 19
 

the Interest
Period then in effect with respect to the applicable Eurodollar Rate
Loans.  If Borrower requests a Committed
Borrowing of, conversion to, or continuation of Eurodollar Rate Loans in any
such Committed Loan Notice, but fails to specify an Interest Period, it will be
deemed to have specified an Interest Period of one month.

(b)           Following receipt of a
Committed Loan Notice for a Committed Borrowing and upon satisfaction of the
applicable conditions set forth in Section
4.02 (and, if such Committed Borrowing is the initial Credit
Extension, Section 4.01), the
Lender shall make the funds so requested available to Borrower either by (i)
crediting the account of Borrower on the books of Bank of America with the
amount of such funds or (ii) wire transfer of such funds, in each case in
accordance with instructions provided to (and reasonably acceptable to) the
Lender by Borrower; provided, however, that if, on the date the
Committed Loan Notice with respect to such Committed Borrowing is given by
Borrower, there are L/C Borrowings outstanding, then the proceeds of such
Committed Borrowing first, shall be applied, to the payment in full of
any such L/C Borrowings, and second, shall be made available to Borrower
as provided above.

(c)           Except as otherwise
provided herein, a Eurodollar Rate Loan may be continued or converted only on
the last day of an Interest Period for such Eurodollar Rate Loan.  During the existence of a Default, no Loans
may be requested as, converted to or continued as Eurodollar Rate Loans, and
during the existence of an Event of Default the Lender may demand that any or
all of the then outstanding Eurodollar Rate Loans be converted immediately to
Base Rate Committed Loans and Borrower agrees to pay all amounts due under Section 3.05 in accordance with the terms
thereof due to any such conversion.

(d)           The Lender shall
promptly notify Borrower of the interest rate applicable to any Interest Period
for Eurodollar Rate Loans upon determination of such interest rate.

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

2.03        Letters of Credit.  (a)  The
Letter of Credit Commitment.

(i)            Subject
to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in
reliance upon the agreements of the Lender set forth in this Section 2.03, (1) from time to time on any
Business Day during the period from the Closing Date until the L/C Expiration
Date, to issue Letters of Credit for the account of Borrower or its
Subsidiaries, and to amend or extend Letters of Credit previously issued by it,
in accordance with subsection (b) below, and (2) to honor drawings under the
Letters of Credit; and (B) the Lender agrees to participate in Letters of
Credit issued for the account of Borrower or its Subsidiaries and any drawings
thereunder; provided that after giving effect to any L/C Credit
Extension with respect to any Letter of Credit, (x) the Total Outstandings
shall not exceed the Commitment, or (y) the Outstanding Amount of the L/C
Obligations shall not exceed the L/C Sublimit. 
Each request by Borrower for the issuance or amendment of a Letter of
Credit shall be deemed to be a representation by Borrower that the L/C Credit
Extension so requested complies with the conditions set forth in the proviso to
the preceding sentence.  Within the
foregoing limits, and subject to the terms and conditions hereof, Borrower’s
ability to obtain Letters of Credit shall be fully revolving,  and accordingly

 20
 

Borrower may,
during the foregoing period, obtain Letters of Credit to replace Letters of
Credit that have expired or that have been drawn upon and reimbursed.

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

(A)          the expiry date of such
requested Letter of Credit would occur more than twelve months after the date
of issuance or last extension, unless the Lender has approved such expiry date;
or

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

(iii)          The
L/C Issuer shall be under no obligation to issue any Letter of Credit if:

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

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

(C)           except as otherwise
agreed by the Lender and the L/C Issuer, such Letter of Credit is in an initial
stated amount less than $10,000;

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

(E)           a default of the Lender’s
obligations to fund under Section 2.03(c)
exists, unless the L/C Issuer has entered into satisfactory arrangements with
Borrower or the Lender to eliminate the L/C Issuer’s risk with respect to the
Lender; or

(F)           UNLESS SPECIFICALLY PROVIDED FOR IN THIS AGREEMENT,
SUCH LETTER OF CREDIT CONTAINS ANY PROVISIONS FOR AUTOMATIC REINSTATEMENT OF
THE STATED AMOUNT AFTER ANY DRAWING THEREUNDER.

(iv)          The
L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would not be
permitted at such time to issue such Letter of Credit in its amended form under
the terms hereof.

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

 21
 

(vi)          The
L/C Issuer shall act on behalf of the Lender with respect to any Letters of
Credit issued by it and the documents associated therewith, and the L/C Issuer
shall have all of the benefits and immunities as additionally provided herein
with respect to the L/C Issuer.

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

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

(ii)           Promptly
after receipt of any L/C Application at the address set forth in Section 9.02 for receiving L/C Applications
and related correspondence, the L/C Issuer will confirm with the Lender (by
telephone or in writing) that the Lender has received a copy of such L/C
Application from Borrower and, if not, the L/C Issuer will provide the Lender
with a copy thereof.  Unless the L/C
Issuer has received written notice from the Lender or any Loan Party, at least
one Business Day prior to the requested date of issuance or amendment of the
applicable Letter of Credit, that one or more applicable conditions in Article IV shall not then be satisfied,
then, subject to the terms and conditions hereof, the L/C Issuer shall, on the
requested date, issue a Letter of Credit for the account of Borrower (or the
applicable Subsidiary) or enter into the applicable amendment, as the case may
be, in each case in accordance with the L/C Issuer’s usual and customary
business practices.  Immediately upon the
issuance of each Letter of Credit, the Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the L/C Issuer a risk
participation in such Letter of Credit in the amount of such Letter of Credit.

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

 22
 

(iv)          If
Borrower so requests in any applicable L/C Application, the L/C Issuer may, in
its sole and absolute discretion, agree to issue a Letter of Credit that has
automatic extension provisions (each, an “Auto-Extension
Letter of Credit”); provided that any such Auto-Extension Letter of
Credit must permit the L/C Issuer to prevent any such extension at least once
in each twelve-month period (commencing with the date of issuance of such
Letter of Credit) by giving prior notice to the beneficiary thereof not later
than a day (the “Non-Extension Notice Date”)
in each such twelve-month period to be agreed upon at the time such Letter of
Credit is issued.  Unless otherwise
directed by the L/C Issuer, Borrower shall not be required to make a specific
request to the L/C Issuer for any such extension.  Once an Auto-Extension Letter of Credit has been
issued, the Lender shall be deemed to have authorized (but may not require) the
L/C Issuer to permit the extension of such Letter of Credit at any time to an
expiry date not later than the L/C Expiration Date; provided, however, that the
L/C Issuer shall not permit any such extension if (A) the L/C Issuer has
determined that it would not be permitted, or would have no obligation, at such
time to issue such Letter of Credit in its revised form (as extended) under the
terms hereof (by reason of the provisions of clause (ii) or (iii) of Section 2.03(a) or otherwise), or (B) it
has received notice (which may be by telephone or in writing) on or before the
day that is five Business Days before the Non-Extension Notice Date (1) from
the Lender that the Lender has elected not to permit such extension, (2) from
the Lender or Borrower that one or more of the applicable conditions specified
in Section 4.02 is not then
satisfied or (3) from the Borrower that the Borrower does not desire such
extension (without the need to provide any reason for such desire), and in each
such case directing the L/C Issuer not to permit such extension.

(v)           If
Borrower so requests in any applicable Letter of Credit Application, the L/C
Issuer may, in its sole and absolute discretion, agree to issue a Letter of
Credit that permits the automatic reinstatement of all or a portion of the
stated amount thereof after any drawing thereunder (each, an “Auto-Reinstatement Letter of Credit”).  Unless otherwise directed by the L/C Issuer,
Borrower shall not be required to make a specific request to the L/C Issuer to
permit such reinstatement.  Once an
Auto-Reinstatement Letter of Credit has been issued, except as provided in the
following sentence, the Lender shall be deemed to have authorized (but may not
require) the L/C Issuer to reinstate all or a portion of the stated amount
thereof in accordance with the provisions of such Letter of Credit.  Notwithstanding the foregoing, if such
Auto-Reinstatement Letter of Credit permits the L/C Issuer to decline to
reinstate all or any portion of the stated amount thereof after a drawing
thereunder by giving notice of such non-reinstatement within a specified number
of days after such drawing (the “Non-Reinstatement
Deadline”), the L/C Issuer shall not permit such reinstatement if it
has received a notice (which may be by telephone or in writing) on or before
the day that is five Business Days before the Non-Reinstatement Deadline (A)
from the Lender that the Lender has elected not to permit such reinstatement,
(B) from the Lender or Borrower that one or more of the applicable conditions
specified in Section 4.02 is not
then satisfied (treating such reinstatement as an L/C Credit Extension for
purposes of this clause), or (C) from the Borrower that the Borrower does not
desire such reinstatement (without the need to provide any reason for such
desire) and, in each case, directing the L/C Issuer not to permit such
reinstatement.

(c)           Drawings and
Reimbursements; Funding of Participations.

(i)            Upon
receipt from the beneficiary of any Letter of Credit of any notice of a drawing
under such Letter of Credit, the L/C Issuer shall notify Borrower and the
Lender thereof.

 23
 

Not later than
11:00 a.m. on the date of any payment by the L/C Issuer under a Letter of
Credit (each such date, an “Honor Date”),
Borrower shall reimburse the L/C Issuer through the Lender in an amount equal
to the amount of such drawing.  If
Borrower fails to so reimburse the L/C Issuer by such time, Borrower shall be
deemed to have requested a Committed Borrowing of Base Rate Loans to be
disbursed on the Honor Date in an amount equal to the amount of the
unreimbursed drawing (the “Unreimbursed
Amount”), without regard to the minimum and multiples specified in Section 2.02 for the principal amount of Base
Rate Loans, but subject to the amount of the unutilized portion of the
Commitment and the conditions set forth in Section
4.02 (other than the delivery of a Committed Loan Notice).  Any notice given by the L/C Issuer or the
Lender pursuant to this Section 2.03(c)(i)
may be given by telephone if promptly confirmed in writing; provided that the
lack of such a prompt confirmation shall not affect the conclusiveness or
binding effect of such notice.

(ii)           The
Lender shall upon any notice pursuant to Section
2.03(c)(i) make funds available for the account of the L/C Issuer in
an amount equal to the Unreimbursed Amount, whereupon, subject to the
provisions of Section 2.03(c)(iii),
the Lender shall be deemed to have made a Base Rate Committed Loan to Borrower
in such amount and the Lender shall remit such funds to the L/C Issuer.

(iii)          With
respect to any Unreimbursed Amount that is not fully refinanced by a Committed
Borrowing of Base Rate Loans because the conditions set forth in Section 4.02 cannot be satisfied or for any
other reason, Borrower shall be deemed to have incurred from the L/C Issuer an
L/C Borrowing in the amount of the Unreimbursed Amount that is not so
refinanced, which L/C Borrowing shall be due and payable on demand (together
with interest) and shall bear interest at the Default Rate.  In such event, the Lender’s payment to the
L/C Issuer pursuant to Section 2.03(c)(ii)
shall be deemed payment in respect of its participation in such L/C Borrowing
and shall constitute an L/C Advance from the Lender in satisfaction of its
participation obligation under this Section
2.03.

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

(v)           The
Lender’s obligation to make Committed Loans or L/C Advances to reimburse the
L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section 2.03(c), shall be absolute and
unconditional and shall not be affected by any circumstance, including (A) any
setoff, counterclaim, recoupment, defense or other right which the Lender may
have against the L/C Issuer, Borrower or any other Person for any reason whatsoever;
(B) the occurrence or continuance of a Default, or (C) any other occurrence,
event or condition, whether or not similar to any of the foregoing; provided,
however, that the Lender’s obligation to make Committed Loans pursuant
to this Section 2.03(c) is subject
to the conditions set forth in Section 4.02
(other than delivery by Borrower of a Committed Loan Notice).  No such making of an L/C Advance shall
relieve or otherwise impair the obligation of Borrower to reimburse the L/C
Issuer for the amount of any payment made by the L/C Issuer under any Letter of
Credit, together with interest as provided herein.

 24
 

(vi)          If
the Lender fails to make available to the L/C Issuer any amount required to be
paid by the Lender pursuant to the foregoing provisions of this Section 2.03(c), the L/C Issuer shall be
entitled to recover from the Lender, on demand, such amount with interest
thereon for the period from the date such payment is required to the date on
which such payment is immediately available to the L/C Issuer at a rate per
annum equal to the greater of the Federal Funds Rate and a rate determined by
the L/C issuer in accordance with banking industry rules on interbank
compensation, plus any administrative, processing or similar fees
customarily charged by the LC/ Issuer in connection with the foregoing.  If the Lender pays such amount (with interest
and fees as aforesaid), the amount so paid shall constitute the Lender’s
Committed Loan included in the relevant Committed Borrowing or L/C Advance in
respect of the relevant L/C Borrowing, as the case may be.  A certificate of the L/C Issuer submitted to
the Lender with respect to any amounts owing under this clause (vi) shall be
conclusive absent manifest error.

(d)           Repayment of
Participations.

(i)            At
any time after the L/C Issuer has made a payment under any Letter of Credit and
has received from the Lender the L/C Advance in respect of such payment in
accordance with Section 2.03(c),
if the Lender receives for the account of the L/C Issuer any payment in respect
of the related Unreimbursed Amount or interest thereon (whether directly from
Borrower or otherwise, including proceeds of Cash Collateral applied thereto by
the Lender), the Lender will use such funds to repay the L/C Advance.

(ii)           If
any payment received by the Lender for the account of the L/C Issuer pursuant
to Section 2.03(c)(i) is required
to be returned under any of the circumstances described in Section 9.05 (including pursuant to any
settlement entered into by the L/C Issuer in its discretion), the Lender shall
pay to the L/C Issuer the amount thereof. 
The obligations of the Lender under this clause shall survive the
payment in full of the Obligations and the termination of this Agreement.

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

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

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

(iii)          any
draft, demand, certificate or other document presented under such Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect
or any statement

 25
 

therein being
untrue or inaccurate in any respect; or any loss or delay in the transmission
or otherwise of any document required in order to make a drawing under such
Letter of Credit;

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

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

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

(f)            Role of L/C Issuer.  The Lender and Borrower agree that, in paying
any drawing under a Letter of Credit, the L/C Issuer shall not have any
responsibility to obtain any document (other than any sight draft, certificates
and documents expressly required by the Letter of Credit) or to ascertain or
inquire as to the validity or accuracy of any such document or the authority of
the Person executing or delivering any such document.  None of the L/C Issuer, any of its Related
Parties nor any correspondent, participant or assignee of the L/C Issuer shall
be liable to the Lender for (i) any action taken or omitted in connection
herewith at the request or with the approval of the Lender; (ii) any action
taken or omitted in the absence of gross negligence or willful misconduct; or
(iii) the due execution, effectiveness, validity or enforceability of any
document or instrument related to any Letter of Credit or Issuer Document.  Borrower hereby assumes all risks of the acts
or omissions of any beneficiary or transferee with respect to its use of any
Letter of Credit; provided, however, that this assumption is not
intended to, and shall not, preclude Borrower’s pursuing such rights and
remedies as it may have against the beneficiary or transferee at law or under
any other agreement.  None of the L/C
Issuer, any of its Related Parties nor any correspondent, participant or
assignee of the L/C Issuer, shall be liable or responsible for any of the
matters described in clauses (i) through (v) of Section 2.03(e); provided, however, that
anything in such clauses to the contrary notwithstanding, Borrower may have a
claim against the L/C Issuer, and the L/C Issuer may be liable to Borrower, to
the extent, but only to the extent, of any direct, as opposed to consequential
or exemplary, damages suffered by Borrower which Borrower proves were caused by
the L/C Issuer’s willful misconduct or gross negligence or the L/C Issuer’s
willful failure to pay under any Letter of Credit after the presentation to it
by the beneficiary of a sight draft and certificate(s) strictly complying with
the terms and conditions of a Letter of Credit. 
In furtherance and not in limitation of the foregoing, the L/C Issuer
may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or information
to the contrary, and the L/C Issuer shall not be responsible for the validity
or sufficiency of any instrument

 26
 

transferring
or assigning or purporting to transfer or assign a Letter of Credit or the
rights or benefits thereunder or proceeds thereof, in whole or in part, which
may prove to be invalid or ineffective for any reason.

(g)           Cash Collateral.  Upon the request of the Lender, (i) if the
L/C Issuer has honored any full or partial drawing request under any Letter of
Credit and such drawing has resulted in an L/C Borrowing, or (ii) if, as of the
L/C Expiration Date, any L/C Obligation for any reason remains outstanding,
Borrower shall, in each case, immediately Cash Collateralize the then
Outstanding Amount of all L/C Obligations. 
Sections 2.05 and 8.02(c) set forth certain additional
requirements to deliver Cash Collateral hereunder.  For purposes hereof, “Cash  Collateralize”
means to pledge and deposit with or deliver to the Lender, for the benefit of
itself and the L/C Issuer, as collateral for the L/C Obligations, cash or
deposit account balances pursuant to documentation in form and substance
satisfactory to the Lender and the L/C Issuer. 
Derivatives of such term have corresponding meanings.  Borrower hereby grants to the Lender, for the
benefit of itself and the L/C Issuer, a security interest in all such cash,
deposit accounts and all balances therein and all proceeds of the
foregoing.  Cash collateral shall be
maintained in blocked, non-interest bearing deposit accounts at Bank of
America.

(h)           Applicability of ISP.  Unless otherwise expressly agreed by the L/C
Issuer and Borrower when a Letter of Credit is issued, the rules of the ISP
shall apply to standby Letter of Credit.

(i)            L/C Fees.  Borrower shall pay to the Lender a L/C fee
(the “L/C Fee”) for each Letter of
Credit equal to the Applicable Rate times the daily  amount available to be drawn under such
Letter of Credit.  For purposes of
computing the daily amount available to be drawn under any Letter of Credit,
the amount of such Letter of Credit shall be determined in accordance with Section 1.06.  L/C Fees shall be (i) due and payable on the
first Business Day after the end of each March, June, September and December,
commencing with the first such date to occur after the issuance of such Letter
of Credit, on the L/C Expiration Date and thereafter on demand and (ii)
computed on a quarterly basis in arrears. 
If there is any change in the Applicable Rate during any quarter, the
daily amount available to be drawn under each standby Letter of Credit shall be
computed and multiplied by the Applicable Rate separately for each period
during such quarter that such Applicable Rate was in effect.  Notwithstanding anything to the contrary
contained herein, upon the request of the Lender, while any Event of Default
exists, all L/C Fees shall accrue at the Default Rate.

(j)            Processing Charges
Payable to L/C Issuer. Borrower shall pay directly to the L/C Issuer for
its own account the customary issuance, presentation, amendment and other
processing fees, and other standard costs and charges, of the L/C Issuer
relating to letters of credit as from time to time in effect.  Such individual customary fees and standard
costs and charges are due and payable on demand and are nonrefundable.

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

(l)            Letters of Credit
Issued for Subsidiaries. 
Notwithstanding that a Letter of Credit issued or outstanding hereunder
is in support of any obligations of, or is for the account of, a Subsidiary,
Borrower shall be obligated to reimburse the L/C Issuer hereunder for any and
all

 27
 

drawings under
such Letter of Credit.  Borrower hereby
acknowledges that the issuance of Letters of Credit for the account of
Subsidiaries inures to the benefit of Borrower, and that Borrower’s business
derives substantial benefits from the businesses of such Subsidiaries.

2.04        Prepayments.  (a) 
Borrower may, upon notice to the Lender, at any time or from time to
time voluntarily prepay Committed Loans in whole or in part without premium or
penalty; provided that (i) such notice must be received by the Lender
not later than 11:00 a.m. (A) three Business Days prior to any date of
prepayment of Eurodollar Rate Loans and (B) on the date of prepayment of Base
Rate Committed Loans; (ii) any prepayment of Eurodollar Rate Loans shall be in
a principal amount of $1,000,000 or a whole multiple of $250,000 in excess
thereof; and (iii) any prepayment of Base Rate Committed Loans shall be in a
principal amount of $500,000 or a whole multiple of $100,000 in excess thereof
or, in each case, if less, the entire principal amount thereof then
outstanding.  Each such notice shall
specify the date and amount of such prepayment and the Type(s) of Committed
Loans to be prepaid and, if Eurodollar Rate Loans are to be prepaid, the
Interest Period(s) of such Loans.  If
such notice is given by Borrower, Borrower shall make such prepayment and the
payment amount specified in such notice shall be due and payable on the date
specified therein.  Any prepayment of a
Eurodollar Rate Loan shall be accompanied by all accrued interest on the amount
prepaid, together with any additional amounts required pursuant to Section 3.05.  Each such prepayment shall be applied to the
Committed Loans of the Lender.

(b)           If for any reason the
Total Outstandings at any time exceed the Commitment then in effect, Borrower
shall immediately prepay Loans and/or Cash Collateralize the L/C Obligations in
an aggregate amount equal to such excess; provided, however, that
Borrower shall not be required to Cash Collateralize the L/C Obligations
pursuant to this Section 2.04(c)
unless after the prepayment in full of the Loans the Total Outstandings exceed
the Commitment then in effect.

2.05        Termination or Reduction
of Commitments.  Borrower may, upon
notice to the Lender, terminate the Commitment, or from time to time
permanently reduce the Commitment; provided that (i) any such notice
shall be received by the Lender not later than 11:00 a.m. five Business Days
prior to the date of termination or reduction, (ii) any such partial reduction
shall be in an aggregate amount of $2,000,000 or any whole multiple of
$1,000,000 in excess thereof, (iii) Borrower shall not terminate or reduce the
Commitment if, after giving effect thereto and to any concurrent prepayments
hereunder, the Total Outstandings would exceed the Commitment, and (iv) if,
after giving effect to any reduction of the Commitment, the L/C Sublimit exceeds
the amount of the Commitment, such Sublimit shall be automatically reduced by
the amount of such excess.  All fees
accrued until the effective date of any termination of the Commitment shall be
paid on the effective date of such termination.

2.06        Repayment of Loans.  Borrower shall repay to the Lender on the
Maturity Date the aggregate principal amount of Committed Loans outstanding on
such date.

2.07        Interest.  (a) 
Subject to the provisions of subsection (b) below, (i) each Eurodollar
Rate Loan shall bear interest on the outstanding principal amount thereof for
each Interest Period at a rate per annum equal to the Eurodollar Rate for such
Interest Period plus the Applicable Rate; and (ii) each Base Rate
Committed Loan shall bear interest on the outstanding

 28
 

principal
amount thereof from the applicable borrowing date at a rate per annum equal to
the Base Rate plus the Applicable Rate.

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

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

(iii)          Upon
the request of the Lender, while any Event of Default exists, Borrower shall
pay interest on the principal amount of all outstanding Obligations hereunder
at a fluctuating interest rate per annum at all times equal to the Default Rate
to the fullest extent permitted by applicable Laws.

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

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

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

(a)           Commitment Fee.  Borrower shall pay to the Lender, a
commitment fee equal to the Applicable Rate times the actual daily
amount by which the Commitment exceeds the sum of (i) the Outstanding Amount of
Committed Loans and (ii) the Outstanding Amount of L/C Obligations.  The commitment fee shall accrue at all times
during the Availability Period, including at any time during which one or more
of the conditions in Article IV is
not met, and shall be due and payable quarterly in arrears on the last Business
Day of each March, June, September and December, commencing with the first such
date to occur after the Closing Date, and on the last day of the Availability
Period.  The commitment fee shall be
calculated quarterly in arrears, and if there is any change in the Applicable
Rate during any quarter, the actual daily amount shall be computed and
multiplied by the Applicable Rate separately for each period during such
quarter that such Applicable Rate was in effect.

2.09        Computation of Interest
and Fees.  All computations of
interest for Base Rate Loans when the Base Rate is determined by Bank of
America’s “prime rate” shall be made on the basis of a year of 365 or 366 days,
as the case may be, and actual days elapsed. 
All other computations of fees and interest shall be made on the basis
of a 360-day year and actual days elapsed (which results in more fees or
interest, as applicable, being paid than if computed on the basis of a 365-day
year).  Interest shall accrue on each
Loan for the day on which the Loan is

 29
 

made, and
shall not accrue on a Loan, or any portion thereof, for the day on which the
Loan or such portion is paid, provided that any Loan that is repaid on
the same day on which it is made shall, subject to Section 2.11(a), bear interest for one day.  Each determination by the Lender of an
interest rate or fee hereunder shall be conclusive and binding for all
purposes, absent manifest error.

2.10        Evidence of Debt.  (a) 
The Credit Extensions made by the Lender shall be evidenced by one or
more accounts or records maintained by the Lender in the ordinary course of
business.  The accounts or records
maintained by the Lender shall be conclusive absent manifest error of the
amount of the Credit Extensions made by the Lender to Borrower and the interest
and payments thereon.  Any failure to so
record or any error in doing so shall not, however, limit or otherwise affect
the obligation of Borrower hereunder to pay any amount owing with respect to
the Obligations.  Upon the request of the
Lender, Borrower shall execute and deliver to the Lender a Note, which shall
evidence the Lender’s Loans in addition to such accounts or records.  The Lender may attach schedules to its Note
and endorse thereon the date, Type (if applicable), amount and maturity of its
Loans and payments with respect thereto.

(b)           In addition to the
accounts and records referred to in subsection (a), the Lender shall maintain
in accordance with its usual practice accounts or records evidencing the
purchases and sales by the Lender of participations in Letters of Credit.

2.11        Payments  Generally. 
(a)(i)  General.  All payments to be made by Borrower shall be
made without condition or deduction for any counterclaim, defense, recoupment
or setoff.  Except as otherwise expressly
provided herein, all payments by Borrower hereunder shall be made to the
Lender, at the Lender’s Office in Dollars and in immediately available funds
not later than 12:00 noon on the date specified herein.  All payments received by the Lender after
12:00 noon shall be deemed received on the next succeeding Business Day and any
applicable interest or fee shall continue to accrue.  If any payment to be made by Borrower shall
come due on a day other than a Business Day, payment shall be made on the next
following Business Day, and such extension of time shall be reflected in
computing interest or fees, as the case may be.

(ii)           On
each date when the payment of any principal, interest or fees are due hereunder
or under any Note, Borrower agrees to maintain on deposit in an ordinary checking
account maintained by Borrower with the Lender (as such account shall be
designated by Borrower in a written notice to the Lender from time to time, the
“Borrower Account”) an amount sufficient
to pay such principal, interest or  fees
in full on such date.  Borrower hereby
authorizes the Lender (A) to deduct automatically all principal, interest or
fees when due hereunder or under any Note from the Borrower Account, and (B) if
and to the extent any payment of principal, interest or fees under this Agreement
or any Note is not made when due to deduct 
any such amount from any or all of the accounts of Borrower maintained
at the Lender.  The Lender agrees to
provide written notice to Borrower of any automatic deduction made pursuant to
this Section 2.11(a)(ii) showing in
reasonable detail the amounts of such deduction.  The Lender agrees to reimburse Borrower for
any amounts deducted from such accounts in excess of amount due hereunder and
under any other Loan Documents.

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

 30
 

Lender that it has obtained or will obtain the funds for any Loan in
any particular place or manner.

ARTICLE
III.

TAXES, YIELD PROTECTION AND ILLEGALITY

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

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

(c)           Indemnification
by Borrower.  Borrower shall
indemnify the Lender and the L/C Issuer, within 10 days after demand therefor,
for the full amount of any Indemnified Taxes or Other Taxes (including
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to
amounts payable under this Section) paid by the Lender or the L/C Issuer, as the
case may be, and any penalties, interest and reasonable expenses arising
therefrom or with respect thereto, whether or not such Indemnified Taxes or
Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority; provided, that if the Borrower reasonably believes that
such Taxes were not correctly or legally asserted, the Lender or the L/C
Issuer, as the case may be, will use reasonable efforts to cooperate with the
Borrower to obtain a refund of such Taxes so long as such efforts would not, in
the reasonable determination of the Lender or the L/C Issuer, as the case may
be, result in any additional costs, expenses or risks or otherwise be
disadvantageous to it.  A certificate as
to the amount of such payment or liability delivered to Borrower by the Lender
or the L/C Issuer shall be conclusive absent manifest error.

(d)           Evidence
of Payments.  As soon as practicable
after any payment of Indemnified Taxes or Other Taxes by Borrower to a
Governmental Authority, Borrower shall deliver to the Lender 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 Lender.

(e)           Status
of Lender.  The Lender, if requested
by Borrower, shall deliver such documentation prescribed by applicable law or
reasonably requested by Borrower as will enable Borrower to determine whether
or not the Lender is subject to backup withholding or information reporting
requirements and, if so subject, to give effect to any exemption from or
reduction in the rate of withholding.

 31
 

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

3.02        Illegality.  If the Lender determines that any Law has
made it unlawful, or that any Governmental Authority has asserted that it is
unlawful, for the Lender or its applicable Lending Office to make, maintain or
fund Eurodollar Rate Loans, or to determine or charge interest rates based upon
the Eurodollar Rate, or any Governmental Authority has imposed material
restrictions on the authority of the Lender to purchase or sell, or to take
deposits of, Dollars in the London interbank market, then, on notice thereof by
the Lender to Borrower, any obligation of the Lender to make or continue Eurodollar
Rate Loans or to convert Base Rate Committed Loans to Eurodollar Rate Loans
shall be suspended until the Lender notifies Borrower that the circumstances
giving rise to such determination no longer exist.  Upon receipt of such notice, Borrower shall,
upon demand from the Lender, prepay or, if applicable, convert all Eurodollar
Rate Loans to Base Rate Loans, either on the last day of the Interest Period
therefor, if the Lender may lawfully continue to maintain such Eurodollar Rate
Loans to such day, or immediately, if the Lender may not lawfully continue to
maintain such Eurodollar Rate Loans. 
Upon any such prepayment or conversion, Borrower shall also pay accrued
interest on the amount so prepaid or converted and all amounts due under Section 3.05 in accordance with the terms
thereof due to such prepayment or conversion.

3.03        Inability to Determine
Rates.  If the Lender determines in
connection with any request for a Eurodollar Rate Loan or a conversion to or
continuation thereof that (a) Dollar deposits are not being offered to banks in
the London interbank eurodollar market for the applicable amount and Interest
Period of such Eurodollar Rate Loan, (b) adequate and reasonable means do not
exist for determining the Eurodollar Base Rate for any requested Interest
Period with respect to a proposed Eurodollar Rate Loan, or (c) the Eurodollar
Base Rate for any requested Interest Period with respect to a proposed
Eurodollar Rate Loan does not adequately and fairly reflect the cost to the
Lender of funding such Loan, the Lender will promptly so notify Borrower.  Thereafter, the obligation of the Lender to
make or maintain Eurodollar Rate Loans shall be suspended until the Lender
revokes such notice.  Upon receipt of
such notice, Borrower may revoke any pending request for a Committed Borrowing
of, conversion to or continuation of Eurodollar Rate Loans or, failing that,
will be deemed to have converted such request into a request for a Committed
Borrowing of Base Rate Loans in the amount specified therein.

 32
 

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

(i)            impose, modify or deem applicable any
reserve, special deposit, compulsory loan, insurance charge or similar
requirement against assets of, deposits with or for the account of, or credit
extended or participated in by, the Lender (except any reserve requirement
reflected in the Eurodollar Rate) or the L/C Issuer;

(ii)           subject the Lender or the L/C Issuer to any
tax of any kind whatsoever with respect to this Agreement, any Letter of
Credit, any participation in a Letter of Credit or any Eurodollar Rate Loan
made by it, or change the basis of taxation of payments to the Lender or the
L/C Issuer in respect thereof (except for Indemnified Taxes or Other Taxes
covered by Section 3.01 and the imposition of, or any change in the rate of,
any Excluded Tax payable by the Lender or the L/C Issuer); or

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

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

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

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

 33
 

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

3.05        Compensation for Losses.  Upon demand of the Lender from time to time,
Borrower shall promptly compensate the Lender for and hold the Lender harmless
from any loss, cost or expense incurred by it as a result of:

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

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

including any loss of anticipated profits and any loss
or expense arising from the liquidation or reemployment of funds obtained by it
to maintain such Loan or from fees payable to terminate the deposits from which
such funds were obtained.  Borrower shall
also pay any customary administrative fees charged by the Lender in connection
with the foregoing.  For purposes of
calculating amounts payable by Borrower to the Lender under this Section 3.05, the Lender shall be deemed to have funded each
Eurodollar Rate Loan made by it at the Eurodollar Base Rate used in determining
the Eurodollar Rate for such Loan by a matching deposit or other borrowing in
the London interbank eurodollar market for a comparable amount and for a
comparable period, whether or not such Eurodollar Rate Loan was in fact so
funded.  Any demand for compensation
shall set forth in reasonable detail the amount and method of determining the
loss, cost or expenses claimed.

3.06        Mitigation Obligations.  If the Lender requests compensation under Section 3.04, or Borrower is required to
pay any additional amount to the Lender or any Governmental Authority for the
account of the Lender pursuant to Section
3.01, or if the Lender gives a notice pursuant to Section 3.02, then the 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 the
Lender, such designation or assignment (i) would eliminate or reduce amounts
payable pursuant to Section  3.01 or 3.04,
as the case may be, in the future, or eliminate the need for the notice
pursuant to Section 3.02, as
applicable, and (ii) in each case, would not subject the Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to the
Lender.  Borrower hereby agrees to pay
all reasonable costs and expenses incurred by the Lender in connection with any
such designation or assignment.

 34
 

3.07        Survival.  All of Borrower’s obligations under this Article III shall survive termination of
the Commitment and repayment of all other Obligations hereunder.

ARTICLE
IV.

CONDITIONS
PRECEDENT TO CREDIT EXTENSIONS

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

(a)           The
Lender’s receipt of the following, each of which shall be originals or
telecopies (followed promptly by originals) unless otherwise specified, each
properly executed by a Responsible Officer of the signing Loan Party, each
dated the Closing Date (or, in the case of certificates of governmental
officials, a recent date before the Closing Date) and each in form and
substance reasonably satisfactory to the Lender:

(i)            counterparts of this Agreement executed by
the Borrower, sufficient in number for distribution to the Lender and Borrower;

(ii)           counterparts of the Guaranty executed by
each Guarantor, sufficient in number for distribution to the Lender and
Borrower;

(iii)          a Note executed by Borrower in favor of the
Lender;

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

(v)           such documents and certifications as the
Lender may reasonably require to evidence that each Loan Party is duly
organized or formed, and that each Loan Party is validly existing, in good
standing and qualified to engage in business in each jurisdiction where its
ownership, lease or operation of properties or the conduct of its business
requires such qualification, except to the extent that failure to do so could
not reasonably be expected to have a Material Adverse Effect;

(vi)          a favorable opinion of counsel to the Loan
Parties reasonably acceptable to the Lender addressed to the Lender, as to the
matters set forth concerning the Loan Parties and the Loan Documents in form
and substance reasonably satisfactory to the Lender;

(vii)         a certificate of a Responsible Officer of each
Loan Party either (A) attaching copies of all consents, licenses and approvals
required in connection with the execution, delivery and performance by such
Loan Party and the validity against such Loan Party of the Loan Documents to
which it is a party, and such consents, licenses and approvals shall be in full
force and effect, or (B) stating that no such consents, licenses or approvals
are so required;

 35
 

(viii)        a certificate signed by a Responsible Officer
of Borrower certifying (A) that the conditions specified in Sections 4.02(a) and (b) have been satisfied, and (B) that there
has been no event or circumstance since the date of the Audited Financial
Statements that has had or could be reasonably expected to have, either
individually or in the aggregate, a Material Adverse Effect;

(ix)           evidence that all insurance required to be
maintained pursuant to the Loan Documents has been obtained and is in effect;

(x)            a duly completed Compliance Certificate as of
the last day of the fiscal quarter of Borrower most recently ended prior to the
Closing Date, signed by a Responsible Officer of Borrower; and

(xi)           such other assurances, certificates,
documents, consents or opinions as the Lender or the L/C Issuer reasonably may
require.

(b)           Any
fees required to be paid on or before the Closing Date shall have been paid.

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

(d)           The
Closing Date shall have occurred on or before May 2, 2007.

4.02        Conditions to all Credit
Extensions.  The obligation of the
Lender to honor any Request for Credit Extension is subject to the following
conditions precedent:

(a)           The
representations and warranties of each Loan Party contained in Article V or any other Loan Document, or
which are contained in any document furnished at any time under or in
connection herewith or therewith, shall be true and correct in all material
respects on and as of the date of such Credit Extension, except to the extent
that such representations and warranties specifically refer to an earlier date,
in which case they shall be true and correct in all material respects as of
such earlier date, and except that for purposes of this Section 4.02, the representations and
warranties contained in subsections (a)
and (b) of Section 5.05 shall be deemed to refer to
the most recent statements furnished pursuant to clauses (a) and (b),
respectively, of Section 6.01.

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

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

 36

(d)           The
Lender shall have received, in form and substance reasonably satisfactory to
it, such other assurances, certificates, documents or consents related to the
foregoing as the Lender reasonably may require.

Each Request for Credit Extension submitted by
Borrower shall be deemed to be a representation and warranty that the
conditions specified in Sections 4.02(a)
and (b) have been satisfied on and as of
the date of the applicable Credit Extension.

ARTICLE
V.

REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants to the Lender that:

5.01        Existence, Qualification
and Power.  Each Loan Party (a) is
duly organized or formed, validly existing and, as applicable, in good standing
under the Laws of the jurisdiction of its incorporation, organization or
designation, (b) has all requisite power and authority and all requisite
governmental licenses, authorizations, consents and approvals to (i) own or
lease its assets and carry on its business and (ii) execute, deliver and
perform its obligations under the Loan Documents to which it is a party, and
(c) is duly qualified and is licensed and, as applicable, in good standing
under the Laws of each jurisdiction where its ownership, lease or operation of
properties or the conduct of its business requires such qualification or
license; except in each case referred to in clause (b)(i), or (c), to the
extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect.

5.02        Authorization; No
Contravention.  The execution,
delivery and performance by each Loan Party of each Loan Document to which such
Person is party, have been duly authorized by all necessary corporate or other
organizational action, and do not and will not (a) contravene the terms of any
of such Person’s Organization Documents; (b) conflict with or result in any
breach or contravention of, or the creation of any Lien under, or require any
payment to be made under (i) any Contractual Obligation to which such Person is
a party or affecting such Person or the properties of such Person or any of its
Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental
Authority or any arbitral award to which such Person or its property is
subject; or (c) violate any Law.

5.03        Governmental
Authorization; Other Consents.  No
approval, consent, exemption, authorization, or other action by, or notice to,
or filing with, any Governmental Authority or any other Person is necessary or
required in connection with the execution, delivery or performance by, or
enforcement against, any Loan Party of this Agreement or any other Loan
Document.

5.04        Binding Effect.  This Agreement has been, and each other Loan
Document, when delivered hereunder, will have been, duly executed and delivered
by each Loan Party that is party thereto. 
This Agreement constitutes, and each other Loan Document when so
delivered will constitute, a legal, valid and binding obligation of such Loan
Party, enforceable against each Loan Party that is party thereto in accordance
with its terms, except as enforceability may be limited by Debtor Relief Laws
and subject to equitable remedies.

 37
 

5.05        Financial Statements; No
Material Adverse Effect; No Internal Control Event.  (a)              The
Audited Financial Statements (i) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise
expressly noted therein; (ii) fairly present in all material respects the
consolidated financial condition of Borrower and its Subsidiaries as of the
date thereof and their consolidated results of operations for the period
covered thereby in accordance with GAAP consistently applied throughout the
period covered thereby, except as otherwise expressly noted therein; and (iii)
show all material indebtedness and other liabilities, direct or contingent, of
Borrower and its Subsidiaries as of the date thereof, including liabilities for
taxes, material commitments and Indebtedness.

(b)           The
unaudited consolidated balance sheets of Borrower and its Subsidiaries dated  December 31, 2006, and the related consolidated
statements of income or operations, shareholders’ equity and cash flows for the
fiscal quarter ended on that date (i) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise
expressly noted therein, and (ii) fairly present in all material respects the
consolidated financial condition of Borrower and its Subsidiaries as of the
date thereof and their consolidated results of operations for the period
covered thereby, subject, in the case of clauses (i) and (ii), to the absence
of footnotes and to normal year-end audit adjustments.

(c)           Since
the date of the Audited Financial Statements, there has been no event or
circumstance, either individually or in the aggregate, that has had or could reasonably
be expected to have a Material Adverse Effect.

(d)           To
the best knowledge of Borrower, no Internal Control Event exists or has
occurred since the date of the Audited Financial Statements that has resulted
in or could reasonably be expected to result in a misstatement in any material
respect, in any financial information delivered or to be delivered to the
Lender, of (i) covenant compliance calculations provided hereunder or (ii) the
assets, liabilities, financial condition or results of operations of Borrower
and its Subsidiaries on a consolidated basis.

(e)           The
consolidated pro forma balance sheets of Borrower and its Subsidiaries as at
December 31, 2006, and the related consolidated pro forma statements of income
and cash flows of Borrower and its Subsidiaries for the 12 months then ended,
certified by the chief financial officer or treasurer of Borrower, copies of
which have been furnished to the Lender, fairly present in all material
respects the consolidated pro forma financial condition of Borrower and its
Subsidiaries as at such date and the consolidated pro forma results of
operations of Borrower and its Subsidiaries for the period ended on such date,
all in accordance with GAAP, subject to the absence of footnotes and to normal
year-end audit adjustments.

(f)            The
forecasts delivered pursuant to Section
6.01(c) were prepared in good faith on the basis of the assumptions
stated therein, which assumptions were believed to be fair in light of the
conditions existing at the time of delivery of such forecasts, and represented,
at the time of delivery, Borrower’s best estimate of its future financial
condition and  performance.

5.06        Litigation.  There are no actions, suits, proceedings,
claims or disputes pending or, to the knowledge of Borrower after due and
diligent investigation, threatened or contemplated, at law, in equity, in
arbitration or before any Governmental Authority, by or

 38
 

against any Loan Party or their Subsidiaries or against any of its
respective properties or revenues that (a) purport to affect or pertain to this
Agreement or any other Loan Document, or any of the transactions contemplated
hereby, or (b) except as specifically disclosed in Schedule 5.06, either individually or in the aggregate, if
determined adversely, could reasonably be expected to have a Material Adverse
Effect, and there has been no adverse change in the status, or financial effect
on any Loan Party, of the matters described on Schedule 5.06.

5.07        No  Default. 
Neither any Loan Party nor any Subsidiary thereof is in default under or
with respect to any Contractual Obligation that could, either individually or
in the aggregate, reasonably be expected to have a Material Adverse
Effect.  No Default has occurred and is
continuing or would result from the consummation of the transactions
contemplated by this Agreement or any other Loan Document.

5.08        Ownership of Property;
Liens.  Each Loan Party and each
Subsidiary thereof has good record and marketable title in fee simple to, or
valid leasehold interests in, all real property necessary or used in the
ordinary conduct of its business, except for such defects in title as could
not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.  The property of
each Loan Party is subject to no Liens, other than Liens permitted by Section
7.01.

5.09        Environmental Compliance.  The Loan Parties and the Subsidiaries thereof
conduct in the ordinary course of business a review of the effect of existing
Environmental Laws and claims alleging potential liability or responsibility
for violation of any Environmental Law on their respective businesses,
operations and properties, and as a result thereof Borrower has reasonably
concluded that, except as specifically disclosed in Schedule 5.09, such Environmental Laws and claims could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

5.10        Insurance.  The properties of each Loan Party are insured
with financially sound and reputable insurance companies not Affiliates of
Borrower, in such amounts (after giving effect to any self-insurance compatible
with the following standards), with such deductibles and covering such risks as
are customarily carried by companies engaged in similar businesses and owning
similar properties in localities where such Loan Party operates.

5.11        Taxes.  The Loan Parties have filed all Federal,
state and other material tax returns and reports required to be filed, and have
paid all Federal, state and other material taxes, assessments, fees and other
governmental charges levied or imposed upon them or their properties, income or
assets otherwise due and payable, except those which are being contested in
good faith by appropriate proceedings diligently conducted and for which
adequate reserves have been provided in accordance with GAAP.  There is no proposed tax assessment against
any Loan Party or any Subsidiary thereof that would, if made, have a Material
Adverse Effect.

5.12        ERISA  Compliance. 
(a)  Each Plan is in compliance in
all material respects with the applicable provisions of ERISA, the Code and
other Federal or state Laws.  Each Plan
that is intended to qualify under Section 401(a) of the Code has received a
favorable determination letter from the IRS or an application for such a letter
is currently being processed by the IRS with respect thereto and, to the best
knowledge of Borrower, nothing has occurred which could

 39
 

reasonably be expected to prevent, or cause the loss of, such
qualification.  Borrower and each ERISA
Affiliate have made all required contributions to each Plan subject to Section
412 of the Code, and no application for a funding waiver or an extension of any
amortization period pursuant to Section 412 of the Code has been made with
respect to any Plan.

(b)           There
are no pending or, to the best knowledge of Borrower, threatened claims,
actions or lawsuits, or action by any Governmental Authority, with respect to
any Plan that could be reasonably be expected to have a Material Adverse
Effect.  There has been no prohibited
transaction or violation of the fiduciary responsibility rules with respect to
any Plan that has resulted or could reasonably be expected to result in a
Material Adverse Effect.

(c)           (i)
No ERISA Event has occurred or is reasonably expected to occur; (ii) no Pension
Plan has any Unfunded Pension Liability; (iii) neither Borrower nor any ERISA
Affiliate has incurred, or reasonably expects to incur, any liability under
Title IV of ERISA with respect to any Pension Plan (other than premiums due and
not delinquent under Section 4007 of ERISA); (iv) neither Borrower nor any
ERISA Affiliate has incurred, or reasonably expects to incur, any liability
(and no event has occurred which, with the giving of notice under Section 4219
of ERISA, would result in such liability) under Section 4201 or 4243 of ERISA
with respect to a Multiemployer Plan; and (v) neither Borrower nor any ERISA
Affiliate has engaged in a transaction that could be subject to Section 4069 or
4212(c) of ERISA.

5.13        Subsidiaries.  As of the Closing Date, Borrower has no
Subsidiaries other than those specifically disclosed in Part (a) of Schedule 5.13, and all of the outstanding Equity Interests in
such Subsidiaries have been validly issued, are fully paid and nonassessable
and are owned by a Loan Party in the amounts specified on Part (a) of Schedule 5.13 free and clear of all Liens.  Borrower has no equity investments in any
other corporation or entity other than those specifically disclosed in Part(b) of Schedule 5.13.  All of
the outstanding Equity Interests in Borrower have been validly issued and are
fully paid and nonassessable.

5.14        Margin Regulations;
Investment Company Act; Public Utility Holding Company Act.  (a) 
Borrower is not engaged and will not engage, principally or as one of
its important activities, in the business of purchasing or carrying margin
stock (within the meaning of Regulation U issued by the FRB), or extending
credit for the purpose of purchasing or carrying margin stock.  Following the application of the proceeds of
each Committed Borrowing or drawing under each Letter of Credit, not more than
25% of the value of the assets (either of Borrower only or of Borrower and its
Subsidiaries on a consolidated basis) subject to the provisions of Section 7.01 or Section 7.05 or subject to any restriction contained in any
agreement or instrument between Borrower and the Lender or any Affiliate of the
Lender relating to Indebtedness and within the scope of Section 8.01(e) will be margin stock.

(b)           None
of Borrower, any Person Controlling Borrower, or any Subsidiary (i) is a “holding
company,” or a “subsidiary company” of a “holding company,” or an “affiliate”
of a “holding company” or of a “subsidiary company” of a “holding company,”
within the meaning of the Public Utility Holding Company Act of 1935, or (ii)
is or is required to be registered as an “investment company” under the
Investment Company Act of 1940.

 40
 

5.15        Disclosure.  Borrower has disclosed to the Lender all
agreements, instruments and corporate or other restrictions to which any Loan
Party or any Subsidiary thereof 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.  No report,
financial statement, certificate or other information furnished (whether in
writing or orally) by or on behalf of any Loan Party to the Lender in
connection with the transactions contemplated hereby and the negotiation of
this Agreement or delivered hereunder or under any other Loan Document (in each
case, 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, Borrower represents only that such information was
prepared in good faith based upon assumptions believed to be reasonable at the
time.

5.16        Compliance  with  Laws.  Each Loan Party and each Subsidiary thereof
is in compliance in all material respects with the requirements of all Laws and
all orders, writs, injunctions and decrees applicable to it or to its
properties, except in such instances in which (a) such requirement of Law or
order, writ, injunction or decree is being contested in good faith by
appropriate proceedings diligently conducted or (b) the failure to comply
therewith, either individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect.

5.17        Taxpayer  Identification  Number.  Borrower’s true
and correct U.S. taxpayer identification number is set forth on Schedule 10.02.

5.18        Intellectual Property;
Licenses, Etc.  The Loan Parties own,
or possess the right to use, all of the trademarks, service marks, trade names,
copyrights, patents, patent rights, franchises, licenses and other intellectual
property rights that are reasonably necessary for the operation of their
respective businesses, without conflict with the rights of any other Person.  To the best knowledge of Borrower, no slogan
or other advertising device, product, process, method, substance, part or other
material now employed, or now contemplated to be employed, by any Loan Party
infringes upon any rights held by any other Person.  No claim or litigation regarding any of the
foregoing is pending or, to the best knowledge of Borrower, threatened, which,
either individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

ARTICLE
VI.

AFFIRMATIVE COVENANTS

So long as the Lender shall have any Commitment
hereunder, any Loan or other Obligation hereunder shall remain unpaid or
unsatisfied, or any Letter of Credit shall remain outstanding, Borrower shall,
and shall (except in the case of the covenants set forth in Sections 6.01, 6.02, and 6.03) cause each Loan Party to:

6.01        Financial  Statements. 
Deliver to the Lender in form and detail satisfactory to the Lender:

 41
 

(a)           as
soon as available, but in any event within 90 days after the end of each fiscal
year of Borrower, a consolidated balance sheet of Borrower and its Subsidiaries
as at the end of such fiscal year, and the related consolidated statements of
income or operations, shareholders’ equity and cash flows for such fiscal year,
setting forth in each case in comparative form the figures for the previous
fiscal year, all in reasonable detail and prepared in accordance with GAAP,
such consolidated statements to be audited and accompanied by (i) a report and
opinion of an independent certified public accounting firm of nationally
recognized standing reasonably acceptable to the Lender, which report and
opinion shall be prepared in accordance with generally accepted auditing
standards and applicable Securities Laws and shall not be subject to any “going
concern” or like qualification or exception or any qualification or exception
as to the scope of such audit or with respect to the absence of any material
misstatement and (ii) an opinion of such Registered Public Accounting Firm
independently assessing Borrower’s internal controls over financial reporting
in accordance with Item 308 of SEC Regulation S-K, PCAOB Auditing Standard No.
2, and Section 404 of Sarbanes-Oxley expressing a conclusion that contains no
statement that there is a material weakness in such internal controls, except
for such material weaknesses as to which the Lender does not object; and

(b)           as
soon as available, but in any event within 45 days after the end of each of the
first three fiscal quarters of each fiscal year of Borrower, a consolidated
balance sheet of Borrower and its Subsidiaries as at the end of such fiscal
quarter, and the related consolidated statements of income or operations,
shareholders’ equity and cash flows for such fiscal quarter and for the portion
of Borrower’s fiscal year then ended, setting forth in each case in comparative
form the figures for the corresponding fiscal quarter of the previous fiscal
year and the corresponding portion of the previous fiscal year, all in
reasonable detail, such consolidated statements to be certified by the chief
executive officer, chief financial officer, treasurer or controller of Borrower
as fairly presenting in all material respects the consolidated financial
condition, results of operations, shareholders’ equity and cash flows of Borrower
and its Subsidiaries in accordance with GAAP, subject only to normal year-end
audit adjustments and the absence of footnotes; and

(c)           as
soon as available, but in any event at least 15 days before the end of each
fiscal year of Borrower, forecasts prepared by management of Borrower, in form
reasonably satisfactory to the Lender, of consolidated statements of income or
operations and cash flow estimates of Borrower and its Subsidiaries on an
annual basis for the immediately following fiscal year (including the fiscal
year in which the Maturity Date occurs).

6.02        Certificates; Other
Information.  Deliver to the Lender
in form and detail satisfactory to the Lender:

(a)           concurrently
with the delivery of the financial statements referred to in Sections 6.01(a) and (b), a duly completed
Compliance Certificate signed by the chief executive officer, chief financial
officer, treasurer or controller of Borrower;

(b)           promptly
after any request by the Lender, copies of any detailed audit reports,
management letters or recommendations submitted to the board of directors (or
the audit committee of the board of directors) of Borrower by independent
accountants in connection with the accounts or books of Borrower or any
Subsidiary, or any audit of any of them;

 42
 

(c)           promptly
after the same are available, copies of each annual report, proxy or financial
statement or other report or communication sent to the stockholders of
Borrower, and copies of all annual, regular, periodic and special reports and
registration statements which Borrower may file or be required to file with the
Securities and Exchange Commission under Section 13 or 15(d) of the Securities
Exchange Act of 1934, and not otherwise required to be delivered to the Lender
pursuant hereto;

(d)           promptly
after the furnishing thereof, copies of any statement or report furnished to
any holder of debt securities of any Loan Party pursuant to the terms of any
indenture, loan or credit or similar agreement and not otherwise required to be
furnished to the Lender pursuant to Section 6.01 or any other clause of this
Section 6.02;

(e)           promptly,
and in any event within five Business Days after receipt thereof by any Loan
Party or any Subsidiary thereof, copies of each notice or other correspondence
received from the Securities and Exchange Commission  (or comparable agency in any applicable
non-U.S. jurisdiction) concerning any investigation or possible investigation
or other inquiry by such agency regarding financial or other operational
results of any Loan Party or any Subsidiary thereof; and

(f)            promptly,
such additional information regarding the business, financial or corporate
affairs of any Loan Party, or compliance with the terms of the Loan Documents,
as the Lender may from time to time reasonably request.

6.03        Notices.  Promptly notify the Lender:

(a)           of
the occurrence of any Default;

(b)           of
any matter that has resulted or could reasonably be expected to result in a
Material Adverse Effect, including (i) breach or non-performance of, or any
default under, a Contractual Obligation of any Loan Party or any Subsidiary
thereof; (ii) any dispute, litigation, investigation, proceeding or suspension
between any Loan Party or any Subsidiary thereof and any Governmental
Authority; or (iii) the commencement of, or any material development in, any
litigation or proceeding affecting any Loan Party or any Subsidiary thereof,
including pursuant to any applicable Environmental Laws;

(c)           of
the occurrence of any ERISA Event;

(d)           of
any material change in accounting policies or financial reporting practices by
any Loan Party, and

(e)           of
the determination by the Registered Public Accounting Firm providing the
opinion required under Section 6.01(a)(ii) (in connection with its preparation
of such opinion) or Borrower’s determination at any time of the occurrence or
existence of any Internal Control Event.

Each notice pursuant to this Section shall be
accompanied by a statement of a Responsible Officer of Borrower setting forth
details of the occurrence referred to therein and stating what action Borrower
has taken and proposes to take with respect thereto.  Each notice pursuant to

 43
 

Section 6.03(a) shall describe
with particularity any and all provisions of this Agreement and any other Loan
Document that have been breached.

6.04        Payment of Obligations.  Pay and discharge as the same shall become
due and payable, all its obligations and liabilities, including (a) all tax
liabilities, assessments and governmental charges or levies upon it or its
properties or assets, unless the same are being contested in good faith by
appropriate proceedings diligently conducted and adequate reserves in
accordance with GAAP are being maintained by the applicable Loan Party; (b) all
lawful claims which, if unpaid, would by law become a Lien upon its property, unless the same are being contested in
good faith by appropriate proceedings diligently conducted and adequate
reserves in accordance with GAAP are being maintained by the applicable Loan
Party; and (c) all Indebtedness, as and when due and payable, but subject to
any subordination provisions contained in any instrument or agreement
evidencing or relating to such Indebtedness except to the extent that failure
to pay or discharge any such Indebtedness could not reasonably be expected to
result in a Material Adverse Effect.

6.05        Preservation of Existence,
Etc.  (a) Preserve, renew and
maintain in full force and effect its legal existence and good standing under
the Laws of the jurisdiction of its organization except in a transaction
permitted by Section 7.04 or 7.05; (b) take all reasonable action to
maintain all rights, privileges, permits, licenses and franchises necessary or
desirable in the normal conduct of its business, except to the extent that
failure to do so could not reasonably be expected to have a Material Adverse
Effect; and (c) preserve or renew all of its registered patents, trademarks,
trade names and service marks, the non-preservation of which could reasonably
be expected to have a Material Adverse Effect.

6.06        Maintenance  of  Properties.  (a) Maintain, preserve and protect all of its
material properties and equipment necessary in the operation of its business in
good working order and condition, ordinary wear, tear and obsolescence
excepted; (b) make all necessary repairs thereto and renewals and replacements
thereof except where the failure to do so could not reasonably be expected to
have a Material Adverse Effect; and (c) use the standard of care typical in the
industry in the operation and maintenance of its facilities.

6.07        Maintenance  of  Insurance.  Maintain with financially sound and reputable
insurance companies not Affiliates of Borrower, insurance with respect to its
properties and business against loss or damage of the kinds customarily insured
against by Persons engaged in the same or similar business, of such types and
in such amounts (after giving effect to any self-insurance compatible with the
following standards) as are customarily carried under similar circumstances by
such other Persons; provided that in any event Borrower will provide the Lender
not less than 30 days’ prior written notice of any termination, lapse,
cancellation or material change in the types and amounts of such insurance.

6.08        Compliance  with  Laws.  Comply in all material respects with the
requirements of all Laws and all orders, writs, injunctions and decrees
applicable to it or to its business or property, except in such instances in
which (a) such requirement of Law or order, writ, injunction or decree is being
contested in good faith by appropriate proceedings diligently conducted; or (b)
the failure to comply therewith could not reasonably be expected to have a
Material Adverse Effect.

 44
 

6.09        Books  and  Records.  (a) 
Maintain proper books of record and account, in which full, true and
correct entries in conformity with GAAP consistently applied shall be made of
all financial transactions and matters involving the assets and business of
Borrower or such Subsidiary, as the case may be; and (b) maintain such books of
record and account in material conformity with all applicable requirements of
any Governmental Authority having regulatory jurisdiction over such Loan Party.

6.10        Inspection  Rights. 
Permit representatives and independent contractors of the Lender to
visit and inspect any of its properties, to examine its corporate, financial
and operating records, and make copies thereof or abstracts therefrom, and to
discuss its affairs, finances and accounts with its directors, officers, and
independent public accountants, all at the expense of Borrower and at such reasonable
times during normal business hours and as often as may be reasonably desired,
upon reasonable advance notice to Borrower; provided, however,
that so long as no Event of Default has occurred and is continuing Borrower’s
obligation to pay the expenses of any of the foregoing will be limited to (i)
one inspection per year (measured from the date of the Agreement and each
anniversary thereof) at Lender’s discretion and (B) any further inspections
resulting from the Lender’s good faith belief that conditions exist that could
result in a Material Adverse Effect; provided, further, that when
an Event of Default exists the Lender (or any of their respective
representatives or independent contractors) may do any of the foregoing at the
expense of Borrower at any time during normal business hours and without
advance notice.

6.11        Use of Proceeds.  Use the proceeds of the Credit Extensions for
financing working capital, the issuance of letters of credit and general
corporate purposes not in contravention of any Law or of any Loan Document.

6.12        Financial Covenants.

(a)           Minimum
EBITDA.  Maintain on a consolidated
basis EBITDA equal to at least $12,000,000. 
This amount will be calculated at the end of each reporting period for
which this Agreement requires Borrower to deliver financial statements, using
the results of the twelve-month period ending with that reporting period.

(b)           Tangible
Net Worth.  Maintain on a
consolidated basis Tangible Net Worth equal to at least the sum of the
following:

(i)            $36,000,000; plus

(ii)           the net proceeds from any equity securities
issued after the date of this Agreement; plus

(iii)          any increase in stockholders’ equity
resulting from the conversion of debt securities to equity securities after the
date of this Agreement.

(c)           Maximum
Leverage Ratio.  Maintain on a
consolidated basis a Leverage Ratio not exceeding 1.5 to 1.0.  This ratio will be calculated at the end of
each reporting period for which this Agreement requires Borrower to deliver
financial statements, using the results of the twelve-month period ending with
that reporting period.

 45
 

6.13        Additional Guarantors.  Notify the Lender at the time that any Person
becomes a Material Subsidiary, and promptly thereafter (and in any event within
30 days), cause such Person to (a) become a Guarantor by executing and
delivering to the Lender a counterpart of the Guaranty or such other document
as the Lender shall deem appropriate for such purpose, and (b) deliver to the
Lender documents of the types referred to in clauses (iii) and (iv) of Section 4.01(a) and favorable opinions of
counsel to such Person (which shall cover, among other things, the legality,
validity, binding effect and enforceability of the documentation referred to in
clause (a)), all in form, content and scope reasonably satisfactory to the
Lender.

6.14        Acquisitions.  Prior to consummating any Acquisition the
Borrower shall have delivered to the Lender (in form and detail reasonably
satisfactory to the Lender) the following:

(i)            Simultaneously with, or as soon as practicable after,
the first public announcement of the intention the Borrower or a Subsidiary of
the Borrower to consummate an Acquisition, a brief summary of the substantive
terms thereof, or if available, a copy of the executed purchase or merger
agreement, together with a copy of such announcement;

(ii)           At least 10 days prior to the consummation of such Acquisition, a copy,
certified by a Responsible Officer of the Borrower, of the executed purchase
contract or merger agreement relating to such Acquisition, if available, or if
not available at such time as soon as practicable after entering into any such
purchase contract or merger agreement; and

(iii)          A certificate, executed
by a Responsible Officer of the Borrower, dated the date of consummation of
such Acquisition, certifying that immediately before and after giving effect to
such Acquisition (A) no Event of Default has occurred and is continuing or will
exist, (B) that the Borrower and its Subsidiaries will be in compliance on a
pro forma basis with each of the financial covenants specified in Section 6.12 as of the end of the fiscal quarter immediately
preceding such Acquisition for which financial statements have been delivered
pursuant to Section 6.01 for the four fiscal
quarter period preceding such fiscal quarter end, together with a reasonably
detailed worksheet setting forth the calculation of such ratios and (C) that
the Acquisition is a Permitted Acquisition.

ARTICLE
VII.

NEGATIVE COVENANTS

So long as the Lender shall have any Commitment
hereunder, any Loan or other Obligation hereunder shall remain unpaid or
unsatisfied, or any Letter of Credit shall remain outstanding, Borrower shall
not, nor shall it permit any Loan Party to, directly or indirectly:

7.01        Liens.  Create, incur, assume or suffer to exist any
Lien upon any of its property, assets or revenues, whether now owned or
hereafter acquired, other than the following:

(a)           Liens
pursuant to any Loan Document;

 46
 

(b)           Liens
existing on the date hereof and listed on Schedule
7.01 and any refinancing, refunding, renewal or extension thereof, provided
that (i) the property covered thereby is not changed, (ii) the amount secured
or benefited thereby is not increased except as contemplated by Section 7.03(b), (iii) the direct or any
contingent obligor with respect thereto is not changed, and (iv) and any
refinancing, refunding, renewal or extension of the obligations secured or
benefited thereby is permitted by Section
7.03(b);

(c)           Liens
for taxes not yet due or which are being contested in good faith and by appropriate
proceedings diligently conducted, if adequate reserves with respect thereto are
maintained on the books of the applicable Person in accordance with GAAP;

(d)           carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens arising
in the ordinary course of business which are not overdue for a period of more
than 30 days or which are being contested in good faith and by appropriate
proceedings diligently conducted, if adequate reserves with respect thereto are
maintained on the books of the applicable Person;

(e)           pledges
or deposits in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other social security legislation,
other than any Lien imposed by ERISA;

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

(g)           easements,
rights-of-way, restrictions and other similar encumbrances affecting real
property which, in the aggregate, are not substantial in amount, and which do
not in any case materially detract from the value of the property subject
thereto or materially interfere with the ordinary conduct of the business of
the applicable Person;

(h)           Liens
securing judgments for the payment of money not constituting an Event of
Default under Section 8.01(h);

(i)            Liens
securing Indebtedness permitted under Section
7.03(e); provided that (i) such Liens do not at any time
encumber any property other than the property financed by such Indebtedness and
(ii) the Indebtedness secured thereby does not exceed the cost or fair market
value, whichever is lower, of the property being acquired on the date of
acquisition;

(j)            Liens
securing Indebtedness (and any refinancing, refunding, renewal or extension
thereof) on property in existence at the time such property is acquired by a
Loan Party in connection with an Acquisition not prohibited by this Agreement;
provided, that (i) such Liens do not at any time encumber any property other
than the property so acquired, (ii) the amount secured or benefited thereby is
not increased, and (iii) the direct or any contingent obligor with respect
thereto is not changed;

(k)           Liens
under UCC § 4-210 and Liens in deposit accounts created under the standard
deposit agreement of any financial institution at which such Loan Party
maintains a deposit account;

 47
 

(l)            Liens
not otherwise permitted by this Section 7.01;
provided, that the aggregate amount of Indebtedness secured by Liens permitted
by this clause (l) shall not at any time exceed $1,000,000.

7.02        Investments.  Make any Investments, except:

(a)           Investments
held by Borrower or any Loan Party in the form of cash equivalents or
marketable debt securities;

(b)           Investments
existing on the date hereof set forth on Schedule
5.13.

(c)           Investments
of Borrower or any other Loan Party in any Borrower or any other Loan Party;

(d)           In
addition to any Investments in Restricted Subsidiaries set forth on Schedule 5.13, Investments of Borrower or
any other Loan Party in any wholly owned Restricted  Subsidiary up to $1,000,000 in the aggregate
from the date hereof through the Maturity Date; provided that intercompany
loans and advances shall count against the limitation in this subsection (d)
only to the extent such loans and advances have not been repaid;

(e)           Investments
consisting of extensions of credit in the nature of accounts receivable or
notes receivable arising from the grant of trade credit in the ordinary course
of business, and Investments received in satisfaction or partial satisfaction
thereof from financially troubled account debtors to the extent reasonably
necessary in order to prevent or limit loss;

(f)            Guarantees
permitted by Section 7.03;

(g)           Loans
and advances to officers, directors and employees of the Borrower or any Loan
Party that in an aggregate amount not to exceed $100,000 at any time
outstanding for travel, entertainment, relocation and analogous ordinary
business purposes and would not be prohibited by Sarbanes-Oxley;

(h)           Investments
incurred in order to consummate Acquisitions not prohibited by this Agreement;

(i)            Investments
in seller “take-back” notes arising in connection with a Disposition of assets
not prohibited by this Agreement; provided that the principal amount of any
such note does not exceed the fair market value of the assets so Disposed; and

(j)            other
Investments not permitted by this Section 7.02; provided, that the aggregate
value of all such other Investments made in any fiscal year shall not exceed
$1,000,000.

7.03        Indebtedness.  Create, incur, assume or suffer to exist any
Indebtedness, except:

(a)           Indebtedness
under the Loan Documents;

(b)           Indebtedness
outstanding on the date hereof and listed on Schedule
7.03 and any refinancing, refunding, renewal or extension thereof; provided
that (i) the amount of such

 48
 

Indebtedness is not increased at the time of such refinancing,
refunding, renewal or extension except by an amount equal to a reasonable premium
or other reasonable amount paid, and fees and expenses reasonably incurred, in
connection with such refinancing and by an amount equal to any existing
commitments unutilized thereunder and (ii) the terms relating to principal
amount, amortization, maturity, collateral (if any) and subordination (if any),
and other material terms taken as a whole, of any such refinancing, refunding,
renewing or extending Indebtedness, and of any agreement entered into and of
any instrument issued in connection therewith, are no less favorable in any
material respect to the Loan Parties or Lenders than the terms of any agreement
or instrument governing the Indebtedness being refinanced, refunded, renewed or
extended and the interest rate applicable to any such refinancing, refunding,
renewing or extending Indebtedness does not exceed the then applicable market
interest rate;

(c)           Guarantees
given by any Loan Party in respect of Indebtedness of any other Loan Party
otherwise not prohibited by this Agreement;

(d)           obligations
(contingent or otherwise) of a Loan Party existing or arising under any Swap
Contract, provided that (i) such obligations are (or were) entered into
by such Person in the ordinary course of business for the purpose of directly
mitigating risks associated with liabilities, commitments, investments, assets,
or property held or reasonably anticipated by such Person, or changes in the
value of securities issued by such Person, and not for purposes of speculation
or taking a “market view;” and (ii) such Swap Contract does not contain any
provision exonerating the non-defaulting party from its obligation to make
payments on outstanding transactions to the defaulting party;

(e)           Indebtedness
in respect of capital leases, Synthetic Lease Obligations and purchase money
obligations for fixed or capital assets within the limitations set forth in Section
7.01(i); provided, however, that the aggregate amount of all
such Indebtedness at any one time outstanding shall not exceed  $1,000,000;

(f)            Indebtedness
secured by Liens permitted by Section 7.01(j);

(g)           Indebtedness
owing to the Borrower or any of its Subsidiaries; and

(h)           other
Indebtedness not permitted by this Section 7.03; provided, that the aggregate
outstanding amount of all such other Indebtedness shall not exceed $1,000,000
at any time.

7.04        Fundamental  Changes. 
Merge, dissolve, liquidate, consolidate with or into another Person, or
Dispose of (whether in one transaction or in a series of transactions) all or
substantially all of its assets (whether now owned or hereafter acquired) to or
in favor of any Person, except that, so long as no Default exists or would
result therefrom:

(a)           any
Loan Party may consummate a Permitted Acquisition;

(b)           any
Loan Party other than the Borrower may merge with (i) Borrower, provided
that Borrower shall be the continuing or surviving Person, or (ii) any
Subsidiary of the Borrower, provided that when any wholly-owned
Subsidiary of the Borrower is merging with another Subsidiary of the Borrower,
the wholly-owned Subsidiary shall be the continuing or surviving

 49
 

Person, and, provided further that if a Guarantor is merging
with a Subsidiary of the Borrower that has not given a Guaranty, the Guarantor
shall be the surviving Person; and

(c)           any
Loan Party may Dispose of all or substantially all of its assets (upon
voluntary liquidation or otherwise) to Borrower or to any Subsidiary of the
Borrower; provided that if the transferor in such a transaction is a
wholly-owned Subsidiary of the Borrower, then the transferee must either be
Borrower or a wholly-owned Subsidiary of the Borrower and, provided further
that if the transferor of such assets is a Guarantor, the transferee must
either be Borrower or a Guarantor.

7.05        Dispositions.  Make any Disposition or enter into any
agreement to make any Disposition, except:

(a)           Dispositions
of obsolete or worn out property, whether now owned or hereafter acquired, in
the ordinary course of business;

(b)           Dispositions
of inventory in the ordinary course of business;

(c)           Dispositions
of equipment or real property to the extent that (i) such property is exchanged
for credit against the purchase price of similar replacement property or (ii)
the proceeds of such Disposition are reasonably promptly applied to the
purchase price of such replacement property;

(d)           Dispositions
of property or equipment to the extent that such Loan Party has determined it
is desirable in the conduct of its business to discontinue the operation and
maintenance of such property and equipment; provided that such Dispositions
(individually or in the aggregate) could not reasonably be expected to have a
Material Adverse Effect;

(e)           Dispositions
of property by any Subsidiary of the Borrower to Borrower or to a wholly-owned
Subsidiary of the Borrower; provided that if the transferor of such property
is a Guarantor, the transferee thereof must either be Borrower or a Guarantor;

(f)            Dispositions
permitted by Section 7.04;

(g)           Dispositions
of cash to satisfy obligations not prohibited by this Agreement; and

(h)           Dispositions
of cash in connection with Restricted Payments not prohibited by this
Agreement.

provided, however, that any
Disposition pursuant to clauses (a) through (g) shall be for fair market value.

7.06        Restricted  Payments. 
Declare or make, directly or indirectly, any Restricted Payment, or
incur any obligation (contingent or otherwise) to do so, or issue or sell any
Equity Interests, except that, so long as no Default shall have occurred and be
continuing at the time of any action described below or would result therefrom:

 50
 

(a)           each
Loan Party may make Restricted Payments to any Person that owns an Equity
Interest in such Loan Party, ratably according to their respective holdings of
the type of Equity Interest in respect of which such Restricted Payment is
being made;

(b)           each
Loan Party may declare and make dividend payments or other distributions
payable solely in the common stock or other common Equity Interests of such
Person; and

(c)           each
Loan Party may purchase, redeem or otherwise acquire Equity Interests issued by
it with the proceeds received from the substantially concurrent issue of new
shares of its common stock or other common Equity Interests.

7.07        Change  in  Nature
of  Business.  Engage in any
material line of business substantially different from those lines of business
conducted by the Loan Parties on the date hereof or any business substantially
related or incidental thereto.

7.08        Transactions  with  Affiliates.  Enter into any transaction of any kind with
any Affiliate of Borrower, whether or not in the ordinary course of business,
other than on fair and reasonable terms substantially as favorable to such Loan
Party as would be obtainable by such Loan Party at the time in a comparable arm’s
length transaction with a Person other than an Affiliate, provided that the
foregoing restriction shall not apply to transactions between or among Borrower
and any Loan Party or between or among any Loan Party other than the Borrower
and any other Loan Party.

7.09        Burdensome  Agreements. 
Enter into any Contractual Obligation (other than this Agreement or any
other Loan Document) that (a) limits the ability (i) of any Loan Party to make
Restricted Payments to the Borrower or its Subsidiaries or to otherwise
transfer property to the Borrower or its Subsidiaries, (ii) of any Loan Party
to Guarantee the Indebtedness of Borrower or its Subsidiaries or (iii) of any
Loan Party to create, incur, assume or suffer to exist Liens on property of
such Person; provided, however, that this clause (iii) shall not
prohibit any negative pledge incurred or provided in favor of any holder of
Indebtedness permitted under Section 7.03(e)
solely to the extent any such negative pledge relates to the property financed
by or the subject of such Indebtedness; or (b) requires the grant of a Lien to
secure an obligation of such Person if a Lien is granted to secure another
obligation of such Person.

7.10        Use of Proceeds.  Use the proceeds of any Credit Extension,
whether directly or indirectly, and whether immediately, incidentally or
ultimately, to purchase or carry margin stock (within the meaning of Regulation
U of the FRB) or to extend credit to others for the purpose of purchasing or
carrying margin stock or to refund indebtedness originally incurred for such
purpose.

ARTICLE
VIII.

EVENTS OF DEFAULT AND REMEDIES

8.01        Events of Default.  Any of the following shall constitute an “Event of Default”:

(a)           Non-Payment.  Any Loan Party fails to pay (i) when and as
required to be paid herein, any amount of principal of any Loan or any L/C
Obligation, or (ii) within three days after the

 51
 

same becomes due, any interest on any Loan or on any L/C Obligation, or
any fee due hereunder, or (iii) within five days after the same becomes due,
any other amount payable hereunder or under any other Loan Document; or

(b)           Specific
Covenants.  Borrower fails to perform
or observe any term, covenant or agreement contained in any of Section 6.01, 6.02, 6.03, 6.05, 6.10, 6.11, 6.12,
6.13, 6.14 or Article VII, or any Guarantor fails to
perform or observe any term, covenant or agreement contained in the Guaranty;
or

(c)           Other
Defaults.  Any Loan Party fails to
perform or observe any other covenant or agreement (not specified in subsection
(a) or (b) above) contained in any Loan Document on its part to be performed or
observed and such failure continues for 30 days after the Borrower or any other
Loan Party has knowledge thereof; or

(d)           Representations
and Warranties.  Any representation,
warranty, certification or statement of fact made or deemed made by or on
behalf of any Loan Party herein, in any other Loan Document, or in any document
delivered in connection herewith or therewith shall be incorrect or misleading
in any material respect when made or deemed made; or

(e)           Cross-Default.  (i) Any Loan Party (A) fails to make any
payment when due (whether by scheduled maturity, required prepayment,
acceleration, demand, or otherwise, but giving effect to any applicable grace
or cure period) in respect of any Indebtedness or Guarantee (other than
Indebtedness hereunder and Indebtedness under Swap Contracts) having an
aggregate principal amount (including undrawn committed or available amounts
and including amounts owing to all creditors under any combined or syndicated
credit arrangement) of more than the Threshold Amount, or (B) fails to observe
or perform any other agreement or condition relating to any such Indebtedness
or Guarantee or contained in any instrument or agreement evidencing, securing
or relating thereto, or any other event occurs, the effect of which default or
other event is to cause, or to permit the holder or holders of such
Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a
trustee or agent on behalf of such holder or holders or beneficiary or
beneficiaries) to cause, with the giving of notice if required, such Indebtedness
to be demanded or to become due or to be repurchased, prepaid, defeased or
redeemed (automatically or otherwise), or an offer to repurchase, prepay,
defease or redeem such Indebtedness to be made, prior to its stated maturity,
or such Guarantee to become payable or cash collateral in respect thereof to be
demanded; or (ii) there occurs under any Swap Contract an Early Termination
Date (as defined in such Swap Contract) resulting from (A) any event of default
under such Swap Contract as to which any Loan Party is the Defaulting Party (as
defined in such Swap Contract) or (B) any Termination Event (as so defined)
under such Swap Contract as to which any Loan Party is an Affected Party (as so
defined) and, in either event, the Swap Termination Value owed by such Loan
Party as a result thereof is greater than the Threshold Amount; or

(f)            Insolvency
Proceedings, Etc.  Any Loan Party
institutes or consents to the institution of any proceeding under any Debtor
Relief Law, or makes an assignment for the benefit of creditors; or applies for
or consents to the appointment of any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer for it or for all or
any material part of its property; or any receiver, trustee, custodian, conservator,
liquidator, rehabilitator or similar officer is appointed without the
application or consent of such Person and the appointment

 52
 

continues undischarged or unstayed for 60 calendar days; or any
proceeding under any Debtor Relief Law relating to any such Person or to all or
any material part of its property is instituted without the consent of such
Person and continues undismissed or unstayed for 60 calendar days, or an order
for relief is entered in any such proceeding; or

(g)           Inability
to Pay Debts; Attachment.  (i) Any
Loan Party becomes unable or admits in writing its inability or fails generally
to pay its debts as they become due, or (ii) any writ or warrant of attachment
or execution or similar process is issued or levied against all or any material
part of the property of any such Person and is not released, vacated or fully
bonded within 30 days after its issue or levy; or

(h)           Judgments.  There is entered against any Loan Party (i)
one or more final judgments or orders for the payment of money in an aggregate
amount (as to all such judgments or orders) exceeding the Threshold Amount (to
the extent not covered by independent third-party insurance as to which the
insurer does not dispute coverage), or (ii) any one or more non-monetary final
judgments that have, or could reasonably be expected to have, individually or
in the aggregate, a Material Adverse Effect and, in either case, (A)
enforcement proceedings are commenced by any creditor upon such judgment or
order, or (B) there is a period of 30 consecutive days during which a stay of
enforcement of such judgment, by reason of a pending appeal or otherwise, is
not in effect; or

(i)            ERISA.  (i) An ERISA Event occurs with respect to a
Pension Plan or Multiemployer Plan which has resulted or could reasonably be
expected to result in liability of Borrower under Title IV of ERISA to the
Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess
of the Threshold Amount, or (ii) Borrower or any ERISA Affiliate fails to pay
when due, after the expiration of any applicable grace period, any installment
payment with respect to its withdrawal liability under Section 4201 of ERISA
under a Multiemployer Plan in an aggregate amount in excess of the Threshold
Amount; or

(j)            Invalidity
of Loan Documents.  Any Loan
Document  or any provision thereof, at
any time after its execution and delivery and for any reason other than as
expressly permitted hereunder or thereunder or satisfaction in full of all the
Obligations, ceases to be in full force and effect; or any Loan Party or any
other Person contests in any manner the validity or enforceability of any Loan
Document or any provision thereof; or any Loan Party denies that it has any or
further liability or obligation under any Loan Document, or purports to revoke,
terminate or rescind any Loan Document or any provision thereof; or

(k)           Change
of Control.  There occurs any Change
of Control with respect to any Loan Party; or

(l)            Material
Adverse Effect.  There occurs any
event or circumstance that has a Material Adverse Effect.

8.02        Remedies Upon Event of
Default.  If any Event of Default
occurs and is continuing the Lender may take any or all of the following
actions:

 53
 

(a)           declare
the commitment of the Lender to make Loans and any obligation of the L/C Issuer
to make L/C Credit Extensions to be terminated, whereupon such commitment and
obligation shall be terminated;

(b)           declare
the unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any
other Loan Document to be immediately due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby expressly
waived by Borrower;

(c)           require
that Borrower Cash Collateralize the L/C Obligations (in an amount equal to the
then Outstanding Amount thereof); and

(d)           exercise
on behalf of itself and the L/C Issuer all rights and remedies available to it
and the L/C Issuer under the Loan Documents;

provided, however, that upon
the occurrence of an actual or deemed entry of an order for relief with respect
to Borrower under the Bankruptcy Code of the United States, the obligation of
the Lender to make Loans and any obligation of the L/C Issuer to make L/C
Credit Extensions shall automatically terminate, the unpaid principal amount of
all outstanding Loans and all interest and other amounts as aforesaid shall
automatically become due and payable, and the obligation of Borrower to Cash
Collateralize the L/C Obligations as aforesaid shall automatically become
effective, in each case without further act of the Lender.

8.03        Application of Funds.  After the exercise of remedies provided for
in Section 8.02 (or after the
Loans have automatically become immediately due and payable and the L/C
Obligations have automatically been required to be Cash Collateralized as set
forth in the proviso to Section 8.02),
any amounts received on account of the Obligations shall be applied by the
Lender in the following order:

First, to payment of that portion of
the Obligations constituting fees, indemnities, expenses and other amounts
(including fees, charges and disbursements of counsel to the Lender (including
fees and time charges for attorneys who may be employees of the Lender) and
amounts payable under Article III)
payable to the Lender in its capacity as such;

Second, to payment of that portion
of the Obligations constituting fees, indemnities and other amounts (other than
principal, interest and L/C Fees) payable to the L/C Issuer (including fees,
charges and disbursements of counsel to the L/C Issuer (including fees and time
charges for attorneys who may be employees of the L/C  Issuer) and amounts payable under Article III);

Third, to payment of that portion of
the Obligations constituting accrued and unpaid L/C Fees and interest on the
Loans, L/C Borrowings and other Obligations, ratably among the Lender and the
L/C Issuer in proportion to the respective amounts described in this clause Third
payable to them;

Fourth, to payment of that portion
of the Obligations constituting unpaid principal of the Loans and L/C
Borrowings, ratably among the Lender and the L/C Issuer in proportion to the
respective amounts described in this clause Fourth held by them;

 54
 

Fifth, to Lender for the account of
the L/C Issuer, to Cash Collateralize that portion of L/C Obligations comprised
of the aggregate undrawn amount of Letters of Credit; and

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

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

ARTICLE
IX.

MISCELLANEOUS

9.01        Amendments, Etc.  No amendment or waiver of any provision of
this Agreement or any other Loan Document, and no consent to any departure by
Borrower or any other Loan Party therefrom, shall be effective unless in
writing signed by the Lender and Borrower or the applicable Loan Party, as the
case may be, and each such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given; provided,
however, that no amendment, waiver or consent shall, unless in writing
and signed by the L/C Issuer in addition to the Lender, affect the rights or
duties of the L/C Issuer under this Agreement or any Issuer Document relating
to any Letter of Credit issued or to be issued by it.

9.02        Notices; Effectiveness;
Electronic Communications.  (a)  Notices Generally.  Except in the case of notices and other
communications expressly permitted to be given by telephone (and except as
provided in subsection (b) below), all notices and other communications
provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by
telecopier to, and all notices and other communications expressly permitted
hereunder to be given by telephone shall be made to, the address, telecopier
number, electronic mail address or telephone number specified for such Person
on Schedule 9.02; and

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

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

 55
 

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

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

(d)           Change
of Address, Etc.  Each of Borrower,
the Lender and the L/C Issuer may change its address, telecopier or telephone
number for notices and other communications hereunder by notice to the other
parties hereto.

(e)           Reliance
by the Lender and L/C Issuer.  The
Lender and the L/C Issuer shall be entitled to rely and act upon any notices
(including telephonic Committed Loan Notices) purportedly given by or on behalf
of Borrower even if (i) such notices were not made in a manner specified
herein, were incomplete or were not preceded or followed by any other form of
notice specified herein, or (ii) the terms thereof, as understood by the
recipient, varied from any confirmation thereof.  Borrower shall indemnify The Lender, the L/C
Issuer and the Related Parties of each of them from all losses, costs, expenses
and liabilities resulting from the reliance by such Person on each notice purportedly
given by or on behalf of Borrower.  All
telephonic notices to and other telephonic communications with the Lender may
be recorded by the Lender, and each of the parties hereto hereby consents to
such recording.

 56

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

9.04        Expenses; Indemnity;
Damage Waiver.  (a)  Costs and Expenses.  Borrower shall pay (i) all reasonable out of
pocket expenses incurred by the Lender and its Affiliates (including the
reasonable fees, charges and disbursements of counsel for the Lender), in
connection with the preparation, negotiation, execution, delivery and
administration of this Agreement and the other Loan Documents or any
amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), (ii) all reasonable out of pocket expenses incurred by the L/C
Issuer in connection with the issuance, amendment, renewal or extension of any
Letter of Credit or any demand for payment thereunder and (iii) all out of
pocket expenses incurred by the Lender or the L/C Issuer (including the fees,
charges and disbursements of any counsel for the Lender or the L/C Issuer), and
shall pay all fees and time charges for attorneys who may be employees of the
Lender or the L/C Issuer, in connection with the enforcement or protection of
its rights (A) in connection with this Agreement and the other Loan Documents,
including its rights under this Section, or (B) in connection with the Loans
made or Letters of Credit issued hereunder, including all such out of pocket
expenses incurred during any workout, restructuring or negotiations in respect
of such Loans or Letters of Credit.

(b)           Indemnification
by Borrower.  Borrower shall
indemnify the Lender and the L/C Issuer, and each Related Party of any of the
foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from,
any and all losses, claims, damages, liabilities and related expenses
(including the fees, charges and disbursements of any counsel for any
Indemnitee), and shall indemnify and hold harmless each Indemnitee from all
fees and time charges and disbursements for attorneys who may be employees of any
Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by
any third party or by Borrower or any other Loan Party arising out of, in
connection with, or as a result of (i) the execution or delivery of this
Agreement, any other Loan Document or any agreement or instrument contemplated
hereby or thereby, the performance by the parties hereto of their respective
obligations hereunder or thereunder, or the consummation of the transactions
contemplated hereby or thereby, or the administration of this Agreement and the
other Loan Documents, (ii) any Loan or Letter of Credit or the use or proposed
use of the proceeds therefrom (including any refusal by the L/C Issuer to honor
a demand for payment under a Letter of Credit if the documents presented in
connection with such demand do not strictly comply with the terms of such
Letter of Credit), (iii) any actual or alleged presence or release of Hazardous
Materials on or from any property owned or operated by Borrower or any of its
Subsidiaries, or any Environmental Liability related in any way to 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, whether brought by a third party or by
Borrower or any other Loan Party, and regardless of whether any Indemnitee is a
party thereto, in all cases, whether or not caused by or arising, in whole or
in part, out of the

 57
 

comparative, contributory or sole negligence of the Indemnitee; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses (x) are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Indemnitee or (y) result from a claim brought by Borrower or any other
Loan Party against an Indemnitee for breach in bad faith of such Indemnitee’s
obligations hereunder or under any other Loan Document, if Borrower or such
Loan Party has obtained a final and nonappealable judgment in its favor on such
claim as determined by a court of competent jurisdiction.

(c)           Waiver
of Consequential Damages, Etc.  To
the fullest extent permitted by applicable law, 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, any other Loan Document or any agreement or instrument contemplated
hereby, the transactions contemplated hereby or thereby, any Loan or Letter of
Credit or the use of the proceeds thereof. 
No Indemnitee referred to in subsection (b) above shall be liable for
any damages arising from the use by unintended recipients of any information or
other materials distributed to such unintended recipients by such Indemnitee
through telecommunications, electronic or other information transmission
systems in connection with this Agreement or the other Loan Documents or the
transactions contemplated hereby or thereby other than for direct or actual
damages resulting from the gross negligence or willful misconduct of such
Indemnitee as determined by a final and nonappealable judgment of a court of
competent jurisdiction.

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

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

9.05         Payments
Set Aside.  To the extent that
any payment by or on behalf of Borrower is made to the Lender or the L/C
Issuer, or the Lender or the L/C Issuer exercises its right of setoff, and such
payment or the proceeds of such setoff or any part thereof is subsequently
invalidated, declared to be fraudulent or preferential, set aside or required
(including pursuant to any settlement entered into by the Lender or the L/C
Issuer in its discretion) to be repaid to a trustee, receiver or any other
party, in connection with any proceeding under any Debtor Relief Law or
otherwise, then to the extent of such recovery, the obligation or part thereof
originally intended to be satisfied shall be revived and continued in full
force and effect as if such payment had not been made or such setoff had not
occurred.

9.06        Successors and Assigns.  (a)  Successors
and Assigns Generally.  The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted
hereby, except that neither Borrower nor any other Loan Party may assign or
otherwise transfer any of its rights or obligations hereunder without the prior
written consent of the Lender and the L/C Issuer, and the Lender and the L/C
Issuer may not assign or otherwise transfer any of its rights or obligations
hereunder except (i) to an assignee in accordance with the provisions of
subsection (b) of this Section, (ii) by way of participation in

 58
 

accordance with the provisions of subsection (d) of this Section, or
(iii) by way of pledge or assignment of a security interest subject to the
restrictions of subsection (f) of this Section (and any other attempted
assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby, Participants
to the extent provided in subsection (d) of this Section and, to the extent
expressly contemplated hereby, the Related Parties of the Lender and the L/C
Issuer) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

(b)           Assignments
by Lender.  The Lender may at any
time 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 (including for purposes of this subsection (b), participations in
L/C Obligations) at the time owing to it); provided that any such
assignment shall be subject to the following conditions:

(i)            Proportionate Amounts.  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 with respect to the Loans or the Commitment
assigned;

(ii)           Required Consents.  No consent shall be required for any
assignment except:

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

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

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

(iv)          No Assignment to Foreign Lenders or
Natural Persons.  No such assignment
shall be made to a Foreign Lender or a natural person.

From and after the effective date of an assignment,
the assignee thereunder shall be a party to this Agreement and, to the extent
of the interest assigned, have the rights and obligations of the Lender under
this Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned, be released from its obligations under this Agreement (and,
in the case of an assignment of all of the Lender’s rights and obligations
under this Agreement, the Lender shall cease to be a party hereto) but shall
continue to be entitled to the benefits of Sections 3.01, 3.04, 3.05,
and 9.04 with respect to facts and
circumstances occurring prior to the effective date of such assignment.  Upon request, Borrower (at its expense) shall
execute and deliver a Note to the assignee Lender.  Any assignment or transfer by the Lender of
rights or obligations under this Agreement that does not comply with this
subsection shall be treated for purposes of this

 59
 

Agreement as a sale by the Lender of a participation
in such rights and obligations in accordance with subsection (d) of this
Section.

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

(d)           Participations.  The Lender may at any time, without the
consent of, or notice to, Borrower, sell participations to any Person (other
than a Foreign Lender, a natural person or Borrower or any of Borrower’s
Affiliates or Subsidiaries) (each, a “Participant”)
in all or a portion of the Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans
(including the Lender’s participations in L/C Obligations) owing to it); provided
that (i) the Lender’s obligations under this Agreement shall remain unchanged,
(ii) the Lender shall remain solely responsible to the other parties hereto for
the performance of such obligations and (iii) Borrower and the L/C Issuer shall
continue to deal solely and directly with the Lender in connection with the
Lender’s rights and obligations under this Agreement.  Any agreement or instrument pursuant to which
the Lender sells such a participation shall provide that the 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 the Lender will not, without the consent of the Participant, agree
to any amendment, waiver or other modification described in the first proviso
to Section 9.01 that affects such
Participant.  Subject to subsection (e)
of this Section, Borrower agrees that each Participant shall be entitled to the
benefits of Sections 3.01, 3.04 and
3.05 to the same extent as if it
were the Lender and had acquired its interest by assignment pursuant to
subsection (b) of this Section.  To the
extent permitted by law, each Participant also shall be entitled to the benefits
of Section 9.08 as though it were
the Lender, provided such Participant agrees to be subject to Section 2.12 as though it were a Lender.

(e)           Limitations
upon Participant Rights.  A
Participant shall not be entitled to receive any greater payment under Section 3.01 or 3.04 than the 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 Borrower’s prior written
consent.

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

 60
 

(g)           Electronic
Execution of Assignments.  The words “execution,”
“signed,” “signature,” and words of like import in any assignment shall be
deemed to include electronic signatures or the keeping of records in electronic
form, each of which shall be of the same legal effect, validity or
enforceability as a manually executed signature or the use of a paper-based
recordkeeping system, as the case may be, to the extent and as provided for in
any applicable law, including the Federal Electronic Signatures in Global and
National Commerce Act, the Missouri Uniform Electronic Transactions Act, or any
other similar state laws based on the Uniform Electronic Transactions Act.

(h)           Deemed
Consent of Borrower.  If the consent
of Borrower to an assignment is required hereunder, Borrower shall be deemed to
have given its consent five Business Days after the date notice thereof has
been delivered to Borrower by the Lender unless such consent is expressly
refused by Borrower prior to such fifth Business Day.

(i)            Resignation
as L/C Issuer.  Notwithstanding
anything to the contrary contained herein, if at any time Bank of America
assigns all of its Commitment and Loans pursuant to subsection (b) above, Bank
of America may, upon 30 days’ notice to Borrower, resign as L/C Issuer.  In the event of any such resignation as L/C
Issuer, Borrower shall be entitled to appoint from among the assignee Lenders a
successor L/C Issuer hereunder; provided, however, that no
failure by Borrower to appoint any such successor shall affect the resignation
of Bank of America as L/C Issuer.  If
Bank of America resigns as L/C Issuer, it shall retain all the rights, powers,
privileges and duties of the L/C Issuer hereunder with respect to all Letters
of Credit outstanding as of the effective date of its resignation as L/C Issuer
and all L/C Obligations with respect thereto (including the right to require
the Lender to make Base Rate Committed Loans or fund risk participations in
Unreimbursed Amounts pursuant to Section
2.03(c)).  Upon the
appointment of a successor L/C Issuer, (a) such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the
retiring L/C Issuer, as the case may be, and (b) the successor L/C Issuer shall
issue letters of credit in substitution for the Letters of Credit, if any,
outstanding at the time of such succession or make other arrangements
satisfactory to Bank of America to effectively assume the obligations of Bank
of America with respect to such Letters of Credit.

9.07        Treatment of Certain
Information; Confidentiality.  Each
of the Lender and the L/C Issuer agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to
its Affiliates and to its and its Affiliates’ respective partners, directors,
officers, employees, agents, advisors and representatives (it being understood
that the Persons to whom such disclosure is made will be informed of the
confidential nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority, purporting
to have jurisdiction over it  (including
any self-regulatory authority, such as the National Association of Insurance
Commissioners), (c) to the extent required by applicable laws or regulations or
by any subpoena or similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies hereunder or under any other Loan
Document or any action or proceeding relating to this Agreement or any other
Loan Document or the enforcement of rights hereunder or thereunder, (f) subject
to an agreement containing provisions substantially the same as those of this
Section, to (i) any assignee of or Participant in, or any prospective assignee
of or Participant in, any of its rights or obligations under this Agreement or
(ii) any actual or prospective

 61
 

counterparty (or its advisors) to any swap or derivative transaction
relating to Borrower and its obligations, (g) with the consent of Borrower or
(h) to the extent such Information (x) becomes publicly available other than as
a result of a breach of this Section or (y) becomes available to the Lender,
the L/C Issuer or any of their respective Affiliates on a nonconfidential basis
from a source other than Borrower.  For
purposes of this Section, “Information”
means all information received from Borrower or any Subsidiary relating to
Borrower or any Subsidiary or any of their respective businesses, other than
any such information that is available to the Lender or the L/C Issuer on a
nonconfidential basis prior to disclosure by Borrower or any Subsidiary, provided
that, in the case of information received from Borrower or any Subsidiary after
the date hereof, such information is clearly identified at the time of delivery
as confidential.  Any Person required to
maintain the confidentiality of Information as provided in this Section shall
be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential
information.  Each of the Lender and the
L/C Issuer acknowledges that (a) the Information may include material
non-public information concerning Borrower or a Subsidiary, as the case may be,
(b) it has developed compliance procedures regarding the use of material
non-public information and (c) it will handle such material non-public
information in accordance with applicable Law, including Federal and state
securities Laws.

9.08        Right of Setoff.  If an Event of Default shall have occurred
and be continuing, the Lender, the L/C Issuer and each of their respective
Affiliates is hereby authorized at any time and from time to time, to the
fullest extent permitted by applicable law, to set off and apply any and all
deposits (general or special, time or demand, provisional or final, in whatever
currency) at any time held and other obligations (in whatever currency) at any
time owing by the Lender, the L/C Issuer or any such Affiliate  to or for the credit or the account of
Borrower or any other Loan Party against any and all of the obligations of
Borrower or such Loan Party now or hereafter existing under this Agreement or
any other Loan Document to the Lender or the L/C Issuer or any such Affiliate,
irrespective of whether or not the Lender or the L/C Issuer shall have made any
demand under this Agreement or any other Loan Document and although such
obligations of Borrower or such Loan Party may be contingent or unmatured or
are owed to a branch or office of the Lender or the L/C Issuer different from
the branch or office holding such deposit or obligated on such indebtedness;
provided, however that the Lender, the L/C Issuer and each of their respective
Affiliates may not setoff and apply such deposits or other obligations to the
extent such deposits or obligations consist of any fees set pursuant to state
statute or regulation, county resolution, or municipal ordinance, or similar
official governmental action, and any tax receipts collected for any
governmental entity.  The rights of the
Lender, the L/C Issuer and their respective Affiliates under this Section are
in addition to other rights and remedies (including other rights of setoff)
that the Lender, the L/C Issuer or their respective Affiliates may have.  The Lender and the L/C Issuer agrees to
notify Borrower and the Lender promptly after any such setoff and application, provided
that the failure to give such notice shall not affect the validity of such
setoff and application.

9.09        Interest Rate Limitation.  Notwithstanding anything to the contrary
contained in any Loan Document, the interest paid or agreed to be paid under
the Loan Documents shall not exceed the maximum rate of non-usurious interest
permitted by applicable Law (the “Maximum
Rate”).  If the Lender shall receive interest in an
amount that exceeds the Maximum Rate, the excess interest shall be applied to
the principal of the Loans or, if it exceeds such unpaid

 62
 

principal, refunded to Borrower. 
In determining whether the interest contracted for, charged, or received
by the Lender exceeds the Maximum Rate, such Person may, to the extent
permitted by applicable Law, (a) characterize any payment that is not principal
as an expense, fee, or premium rather than interest, (b) exclude voluntary
prepayments and the effects thereof, and (c) amortize, prorate, allocate, and
spread in equal or unequal parts the total amount of interest throughout the
contemplated term of the Obligations hereunder.

9.10        Counterparts; Integration;
Effectiveness.  This Agreement may be
executed in counterparts (and by different parties hereto in different
counterparts), each of which shall constitute an original, but all of which
when taken together shall constitute a single contract.  This Agreement and the other Loan Documents
constitute the entire contract among the parties relating to the subject matter
hereof and supersede any and all previous agreements and understandings, oral
or written, relating to the subject matter hereof.  Except as provided in Section 4.01, this Agreement shall become
effective when it shall have been executed by the Lender and when the Lender
shall have received counterparts hereof that, when taken together, bear the
signatures of each of the other parties hereto. 
Delivery of an executed counterpart of a signature page of this
Agreement by telecopy shall be effective as delivery of a manually executed
counterpart of this Agreement.

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

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

9.13        Governing Law;
Jurisdiction; Etc.  (a)  GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF MISSOURI.

(b)           SUBMISSION
TO JURISDICTION.  BORROWER AND EACH
OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS
PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF
MISSOURI SITTING IN JACKSON COUNTY AND OF THE UNITED STATES DISTRICT COURT OF
THE WESTERN DISTRICT OF MISSOURI, AND ANY

 63
 

APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH
ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH MISSOURI STATE COURT
OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL
COURT.  EACH OF THE PARTIES HERETO AGREES
THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND
MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER
MANNER PROVIDED BY LAW.  NOTHING IN THIS
AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE LENDER
OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST BORROWER OR ANY OTHER LOAN
PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

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

(d)           SERVICE
OF PROCESS.  EACH PARTY HERETO
IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES
IN SECTION 9.02.  NOTHING IN THIS AGREEMENT WILL AFFECT THE
RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
APPLICABLE LAW.

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

 64
 

9.15        No Advisory or Fiduciary
Responsibility.  In connection with
all aspects of each transaction contemplated hereby, Borrower and each other
Loan Party acknowledges and agrees, and acknowledges its Affiliates’
understanding, that: (i) the credit facilities provided for hereunder and any
related arranging or other services in connection therewith (including in
connection with any amendment, waiver or other modification hereof or of any
other Loan Document) are an arm’s-length commercial transaction between
Borrower, each other Loan Party and their respective Affiliates, on the one
hand, and the Lender, on the other hand, and Borrower and each other Loan Party
is capable of evaluating and understanding and understands and accepts the
terms, risks and conditions of the transactions contemplated hereby and by the
other Loan Documents (including any amendment, waiver or other modification
hereof or thereof); (ii) in connection with the process leading to such
transaction, the Lender is and has been acting solely as a principal and is not
the financial advisor, agent or fiduciary, for Borrower, any other Loan Party
or any of their respective Affiliates, stockholders, creditors or employees or
any other Person; (iii) the Lender has not assumed and will not assume an
advisory, agency or fiduciary responsibility in favor of Borrower or any other
Loan Party with respect to any of the transactions contemplated hereby or the
process leading thereto, including with respect to any amendment, waiver or
other modification hereof or of any other Loan Document (irrespective of
whether the Lender has advised or is currently advising Borrower, any other
Loan Party or any of their respective Affiliates on other matters) and the
Lender has no obligation to Borrower, any other Loan Party or any of their
respective Affiliates with respect to the transactions contemplated hereby
except those obligations expressly set forth herein and in the other Loan
Documents; (iv) the Lender and its Affiliates may be engaged in a broad range
of transactions that involve interests that differ from those of Borrower, the
other Loan Parties and their respective Affiliates, and the Lender has no
obligation to disclose any of such interests by virtue of any advisory, agency
or fiduciary relationship; and (v) the Lender has not provided and will not
provide any legal, accounting, regulatory or tax advice with respect to any of
the transactions contemplated hereby (including any amendment, waiver or other
modification hereof or of any other Loan Document) and each of Borrower and the
other Loan Parties has consulted its own legal, accounting, regulatory and tax
advisors to the extent it has deemed appropriate.  Each of Borrower and the other Loan Parties
hereby waives and releases, to the fullest extent permitted by law, any claims
that it may have against the Lender with respect to any breach or alleged
breach of agency or fiduciary duty.

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

9.17        Time of the Essence.  Time is of the essence of the Loan Documents.

9.18        No Oral Agreements.  The following notice is given to comply with
§ 432.045 of the Revised Statutes of Missouri:

Oral
agreements or commitments to loan money, extend credit or to forbear from
enforcing repayment of a debt including promises to extend or renew such debt
are not enforceable,

 65
 

regardless
of the legal theory upon which it is based that is in any way related to the
credit agreement. To protect you (borrower(s)) and us (creditor) from
misunderstanding or disappointment, any agreements we reach covering such matters
are contained in this writing, which is the complete and exclusive statement of
the agreement between us, except as we may later agree in writing to modify it.

As used in this section, the term “this writing” is
deemed to include all Loan Documents.

 66

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

	
  

  	
  NIC INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 S-1
 

 

	
  

  	
  BANK OF AMERICA, N.A., as

  
	
   

  	
  the Lender and L/C Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: John P. Mills

  
	
   

  	
   

  
	
   

  	
  Title: Senior Vice President

  

 

 S-2

SCHEDULE
1.01

INITIAL GUARANTORS

	
  COMPANY

  	
   

  	
  Jurisdiction

  
	
  Alabama
  Interactive, LLC

  	
   

  	
  Alabama

  
	
  Arkansas
  Information Consortium, LLC

  	
   

  	
  Arkansas

  
	
  Colorado
  Interactive, LLC

  	
   

  	
  Colorado

  
	
  Hawaii
  Information Consortium, LLC

  	
   

  	
  Hawaii

  
	
  Idaho
  Information Consortium, LLC

  	
   

  	
  Idaho

  
	
  Indiana
  Interactive, LLC

  	
   

  	
  Indiana

  
	
  Iowa
  Interactive, LLC

  	
   

  	
  Iowa

  
	
  Kansas
  Information Consortium, Inc.

  	
   

  	
  Kansas

  
	
  Kentucky
  Interactive LLC

  	
   

  	
  Kentucky

  
	
  Local Government
  Online Indiana, LLC

  	
   

  	
  Indiana

  
	
  Maine
  Information Network, LLC

  	
   

  	
  Maine

  
	
  Montana
  Interactive, LLC

  	
   

  	
  Montana

  
	
  NICUSA, Inc.
  (Formerly, National Information Con USA, Inc.)

  	
   

  	
  Kansas

  
	
  National
  Information Consortium Technologies, LLC

  	
   

  	
  California

  
	
  Nebraska
  Interactive, LLC

  	
   

  	
  Nebraska

  
	
  Rhode Island
  Interactive, LLC

  	
   

  	
  Rhode Island

  
	
  South Carolina
  Interactive, LLC

  	
   

  	
  South Carolina

  
	
  Utah
  Interactive, LLC

  	
   

  	
  Utah

  
	
  Vermont
  Information Consortium, LLC

  	
   

  	
  Vermont

  
	
  Virginia
  Interactive, LLC

  	
   

  	
  Virginia

  

 

SCHEDULE
2.01

COMMITMENT

	
  Lender

  	
   

  	
  Commitment

  
	
   

  	
   

  	
   

  
	
  Bank of America,
  N.A.

  	
   

  	
  $

  	
  10,000,000.00

  

 

SCHEDULE
5.06

LITIGATION

NONE

SCHEDULE
5.09

ENVIRONMENTAL MATTERS

NONE

SCHEDULE
5.13

SUBSIDIARIES

AND OTHER EQUITY INVESTMENTS

Part (a).             Subsidiaries.

	
  Company

  	
   

  	
  Jurisdiction

  	
   

  
	
  Alabama Interactive, LLC

  	
   

  	
  Alabama **

  	
   

  
	
  Arizona Interactive, LLC

  	
   

  	
  Arizona **

  	
   

  
	
  Arkansas Information Consortium, LLC

  	
   

  	
  Arkansas **

  	
   

  
	
  Bay Interactive, LLC

  	
   

  	
  California **

  	
   

  
	
  Colorado Interactive, LLC

  	
   

  	
  Colorado **

  	
   

  
	
  Construction Registry Services, LLC

  	
   

  	
  Utah **

  	
   

  
	
  eGov Service Corporation

  	
   

  	
  Colorado **

  	
   

  
	
  Florida Information Consortium, Inc.

  	
   

  	
  Florida **

  	
   

  
	
  Florida Interactive, LLC

  	
   

  	
  Florida **

  	
   

  
	
  Hawaii Information Consortium, LLC

  	
   

  	
  Hawaii **

  	
   

  
	
  Idaho Information Consortium, LLC

  	
   

  	
  Idaho **

  	
   

  
	
  Indiana Interactive, LLC

  	
   

  	
  Indiana** 

  	
   

  
	
  Intelligent Decision Technologies, LLC

  	
   

  	
  Colorado **

  	
   

  
	
  Iowa Interactive, LLC

  	
   

  	
  Iowa **

  	
   

  
	
  Kansas Information Consortium Merger Company, LLC

  	
   

  	
  Kansas **

  	
   

  
	
  Kansas Information Consortium, Inc.

  	
   

  	
  Kansas **

  	
   

  
	
  Kentucky Interactive, LLC

  	
   

  	
  Kentucky **

  	
   

  
	
  Local Government Online Indiana, LLC

  	
   

  	
  Kansas **

  	
   

  
	
  Maine Information Network, LLC

  	
   

  	
  Maine **

  	
   

  
	
  Michigan Local Interactive, LLC

  	
   

  	
  Michigan **

  	
   

  
	
  Montana Interactive, LLC

  	
   

  	
  Montana **

  	
   

  
	
  National Information Consortium Technologies, LLC

  	
   

  	
  California **

  	
   

  
	
  National Online Registries, LLC

  	
   

  	
  Colorado **

  	
   

  
	
  National Retail Registries LLC

  	
   

  	
  Colorado **

  	
   

  
	
  Nebraska Interactive, LLC

  	
   

  	
  Nebraska **

  	
   

  
	
  New York Information Consortium, LLC

  	
   

  	
  New York **

  	
   

  
	
  NIC Commerce, LLC

  	
   

  	
  Colorado **

  	
   

  

 

 

	
  NIC Conquest, LLC

  	
   

  	
  Colorado **

  	
   

  
	
  NIC Solutions, LLC

  	
   

  	
  Colorado **

  	
   

  
	
  NICUSA, Inc. (formerly National Information
  Consortium USA, Inc.)

  	
   

  	
  Kansas *

  	
   

  
	
  Oklahoma Interactive, LLC

  	
   

  	
  Oklahoma **

  	
   

  
	
  Rhode Island Interactive, LLC

  	
   

  	
  Rhode Island **

  	
   

  
	
  South Carolina Interactive, LLC

  	
   

  	
  South Carolina **

  	
   

  
	
  Tennessee Information Consortium, Inc.

  	
   

  	
  Tennessee **

  	
   

  
	
  Texas Local Interactive, LLC

  	
   

  	
  Texas **

  	
   

  
	
  Utah Interactive, LLC

  	
   

  	
  Utah **

  	
   

  
	
  Vermont Information Consortium, LLC

  	
   

  	
  Vermont **

  	
   

  
	
  Virginia Interactive, LLC

  	
   

  	
  Virginia **

  	
   

  
	
  West Virginia Interactive, LLC

  	
   

  	
  West Virginia **

  	
   

  

 

* Wholly owned subsidiary
of NIC Inc.

** Wholly owned
subsidiary of NICUSA, Inc

Part (b).             Other Equity Investments.

eGovernment Solutions
Limited - Private joint venture (less than 15% passive ownership interest)

In October 2000,
NIC made an initial $0.5 million cash investment in e-Government Solutions
Limited (“eGS”), a private joint venture giving NIC initial ownership of 40% of
the ordinary shares of eGS.  The purpose
of the eGS joint venture, based in London, England, was to deliver eGovernment
services throughout Western Europe, with initial efforts to focus on the United
Kingdom.  In September 2001, the joint
venture agreement was modified and reduced NIC’s obligation to make future cash
contributions to the joint venture and gave NIC ownership of 47% of the
ordinary shares of eGS.  In December
2002, the joint venture agreement was again modified and, among other changes,
eliminated NIC’s obligation to make future cash contributions to the joint
venture, reduced NIC’s ownership to 20% and eliminated NIC’s participation on
the board of directors.  The investment
had been accounted for under the equity method. 
As a result of the modification to the joint venture agreement in
December 2002, the Company began to account for its investment in eGS under the
cost method and had no investment balance remaining in eGS after the
modification.  NIC’s cash contributions since
the inception of the joint venture have totaled approximately $1.0
million.  At December 31, 2006, the
Company’s ownership interest in eGS was approximately 14%.

SCHEDULE 7.01

EXISTING LIENS

NONE

SCHEDULE
7.03

EXISTING INDEBTEDNESS

NIC Credit Summary

As of: 4/30/07

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Current

  	
   

  	
  Silverlake

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In Support

  	
   

  	
  L/C

  	
   

  	
  Bank

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Availability

  	
   

  	
  Demand

  	
   

  	
   

  	
   

  
	
  Beneficiary

  	
   

  	
  of Portal

  	
   

  	
  Amount

  	
   

  	
  Issuing

  	
   

  	
  L/C #

  	
   

  	
  Expires

  	
   

  	
  Note #

  	
   

  	
  under Note

  	
   

  	
  Note Maturity

  	
   

  	
  Collateral

  	
   

  
	
  RLI*

  	
   

  	
  Tennessee

  	
   

  	
  $

  	
  1,000,000.00

  	
   

  	
  LaSalle

  	
   

  	
  S546103

  	
   

  	
  10/3/2007

  	
   

  	
  5113768

  	
   

  	
  $

  	
  1,000,000.00

  	
   

  	
  10/3/2007

  	
   

  	
  Unsecured

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ME

  	
   

  	
  New England Interactive

  	
   

  	
  $

  	
  158,148.00

  	
   

  	
  GWB

  	
   

  	
  5113741

  	
   

  	
  7/14/2007

  	
   

  	
  5113741

  	
   

  	
  $

  	
  158,148.00

  	
   

  	
  7/14/2007

  	
   

  	
  Unsecured

  	
   

  
	
  LOC increased to
  $158,148 in May 2007 - same expiration terms

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Parkway Properties

  	
   

  	
  South Carolina lease

  	
   

  	
  $

  	
  57,862.42

  	
   

  	
  GWB

  	
   

  	
  5E+06

  	
   

  	
  5/27/2007

  	
   

  	
  5167366

  	
   

  	
  $

  	
  57,862.42

  	
   

  	
  5/27/2007

  	
   

  	
  Unsecured

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NNN One Nashville Place, LLC

  	
   

  	
  Nashville Lease

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  GWB

  	
   

  	
  5E+06

  	
   

  	
  10/14/2007

  	
   

  	
  5166681

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  10/14/2007

  	
   

  	
  Unsecured

  	
   

  
	
  Letter of Credit Totals

  	
   

  	
   

  	
   

  	
  $

  	
  1,316,010.42

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  1,316,010.42

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

SCHEDULE
9.02

THE LENDER’S OFFICE,

CERTAIN ADDRESSES FOR NOTICES

NIC INC.:

10540 South Ridgeview
Road

Olathe, KS 66061

Attention: Stephen M.
Kovzan

Telephone: 913-498-3468

Telecopier: 913-498-3472

Electronic Mail:
stevek@nicusa.com

Website Address:                www.nicusa.com

U.S. Taxpayer
Identification Number: 52-2077581

LENDER:

The Lender’s Office

(for payments and Requests for Credit Extensions):

Bank of America, N.A.

Street Address

Mail Code:

City, State ZIP Code

Attention:  Joe Healy

Telephone:  816.292.4253

Telecopier:  214.530.2922

Electronic Mail:  joe.b.healy@bankofamerica.com

ABA# 026009593

 1
 

L/C ISSUER:

Standby Letters of Credit:

Bank of America, N.A.

Trade Operations-Los Angeles #22621

1000 W. Temple Street, 7th Floor

CA9-705-07-05

Los Angeles, CA 90012-1514

Attention:                                         Tai Anh Lu

Officer

Telephone:  213.481.7840

Telecopier:  213.580.8442

Electronic Mail:

tai_anh.lu@bankofamerica.com]

Bank of America, N.A.

Trade Operations

One Fleet Way

Mail Code: PA6-580-02-30

Scranton, PA  18507

Attention:                                         Alfonso (Al)
Malave

Telephone:  570.330.4212

Telecopier:  570.330.4186

Electronic Mail:

alfonso.malave@bankofamerica.com]

Bankers Acceptance

Bank of America, N.A.

Trade Operations-Los Angeles

1000 W. Temple Street, 7th Floor

CA9-705-07-05

Los Angeles, CA 90012-1514

Attention:                                         Frantz
Bellevue

Vice President

Telephone:  213.580.8476

Telecopier:  213.580.8444

Electronic Mail:

frantz.bellevue@bankofamerica.com]

 2

EXHIBIT A

FORM OF COMMITTED LOAN NOTICE

Date:                        ,
          

To:          Bank
of America, N.A., as the Lender

Ladies and Gentlemen:

Reference is made to that certain Credit Agreement,
dated as of May 2, 2007 (as amended, restated, extended, supplemented or
otherwise modified in writing from time to time, the “Agreement;”
the terms defined therein being used herein as therein defined), between NIC Inc., a Colorado corporation
(the “Borrower”) and Bank of America, N.A.,
as the Lender and L/C Issuer.

The undersigned hereby requests (select one):

A Committed Borrowing of
Committed Loans                A
conversion or continuation of Committed Loans

1.             On
                                                                
(a Business Day).

2.             In
the amount of $                                        .

3.             Comprised of                                                                       .

[Type
of Committed Loan requested]

4.             For
Eurodollar Rate Loans:  with an Interest
Period of          months.

The Committed Borrowing, if any, requested herein
complies with the provisos to the first sentence of Section 2.01 of the
Agreement.

	
  

  	
  NIC INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 A-1

EXHIBIT B

FORM OF NOTE

	
  $10,000,000.00

  	
   

  	
  May 2, 2007

  

 

FOR VALUE RECEIVED, the undersigned (“Borrower”), hereby promises to pay to BANK OF AMERICA, N.A.
or registered assigns (“Lender”), in
accordance with the provisions of the Agreement (as hereinafter defined), the
principal amount of each Loan from time to time made by the Lender to Borrower
under that certain Credit Agreement, dated as of May 2, 2007
(as amended, restated, extended, supplemented or otherwise modified in writing
from time to time, the “Agreement;” the
terms defined therein being used herein as therein defined), among Borrower and
Bank of America, N.A., as the Lender and the L/C Issuer.

Borrower promises to pay interest on the unpaid
principal amount of each Loan from the date of such Loan until such principal
amount is paid in full, at such interest rates and at such times as provided in
the Agreement.  All payments of principal
and interest shall be made to the Lender in Dollars in immediately available
funds at the Lender’s Office.  If any
amount is not paid in full when due hereunder, such unpaid amount shall bear
interest, to be paid upon demand, from the due date thereof until the date of
actual payment (and before as well as after judgment) computed at the per annum
rate set forth in the Agreement.

This Note is the Note referred to in the Agreement, is
entitled to the benefits thereof and may be prepaid in whole or in part subject
to the terms and conditions provided therein. 
This Note is also entitled to the benefits of the Guaranty.  Upon the occurrence and continuation of one
or more of the Events of Default specified in the Agreement, all amounts then
remaining unpaid on this Note shall become, or may be declared to be,
immediately due and payable all as provided in the Agreement.  Loans made by the Lender shall be evidenced
by one or more loan accounts or records maintained by the Lender in the
ordinary course of business. The Lender may also attach schedules to this Note
and endorse thereon the date, amount and maturity of its Loans and payments
with respect thereto.

Borrower, for itself, its successors and assigns,
hereby waives diligence, presentment, protest and demand and notice of protest,
demand, dishonor and non-payment of this Note.

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF MISSOURI.

	
  

  	
  NIC INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 B-1
 

LOANS AND PAYMENTS WITH RESPECT THERETO

	
  Date

  	
   

  	
  Type of

  Loan

  Made

  	
   

  	
  Amount

  of Loan

  Made

  	
   

  	
  End of

  Interest

  Period

  	
   

  	
  Amount

  of

  Principal

  or

  Interest

  Paid

  This

  Date

  	
   

  	
  Outstanding

  Principal

  Balance

  This Date

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 B-2

EXHIBIT C

FORM OF COMPLIANCE CERTIFICATE

Financial
Statement Date:                                  ,

To:          Bank of America, N.A., as the Lender

Ladies and Gentlemen:

Reference is made to that certain Credit Agreement,
dated as of May 2, 2007 (as amended, restated,
extended, supplemented or otherwise modified in writing from time to time, the “Agreement;”
the terms defined therein being used herein as therein defined), between NIC Inc., a Colorado corporation (“Borrower”)
and Bank of America, N.A., as the Lender and the L/C Issuer.

The undersigned Responsible Officer hereby certifies
as of the date hereof that he/she is the                                                   
of Borrower, and that, as such, he/she is authorized to execute and deliver
this Certificate to the Lender on the behalf of Borrower, and that:

[Use
following paragraph 1 for fiscal year-end
financial statements]

1.             Attached
hereto as Schedule 1 are the year-end audited
financial statements required by Section 6.01(a) of the Agreement for the
fiscal year of Borrower ended as of the above date, together with the report
and opinion of an independent certified public accountant required by such
section.

[Use
following paragraph 1 for fiscal quarter-end
financial statements]

1.             Attached
hereto as Schedule 1 are the unaudited financial
statements required by Section 6.01(b) of the Agreement for the fiscal quarter
of Borrower ended as of the above date. 
Such financial statements fairly present in all material respects the
financial condition, results of operations and cash flows of Borrower and its
Subsidiaries in accordance with GAAP as at such date and for such period,
subject only to normal year-end audit adjustments and the absence of footnotes.

2.             The
undersigned has reviewed and is familiar with the terms of the Agreement and
has made, or has caused to be made under his/her supervision, a detailed review
of the transactions and condition (financial or otherwise) of Borrower during
the accounting period covered by the attached financial statements.

3.             A
review of the activities of Borrower during such fiscal period has been made
under the supervision of the undersigned with a view to determining whether
during such fiscal period Borrower performed and observed all its Obligations
under the Loan Documents, and

 C-1
 

[select
one:]

[to the best knowledge of the undersigned during
such fiscal period, Borrower performed and observed each covenant and condition
of the Loan Documents applicable to it, and no Default has occurred and is
continuing.]

—or—

[the following covenants or conditions have not
been performed or observed and the following is a list of each such Default and
its nature and status:]

4.             The
representations and warranties of Borrower contained in Article V of the
Agreement, and/or any representations and warranties of Borrower or any other
Loan Party that are contained in any document furnished at any time under or in
connection with the Loan Documents, are true and correct in all material
respects on and as of the date hereof, except to the extent that such
representations and warranties specifically refer to an earlier date, in which
case they are true and correct in all material respects as of such earlier
date, and except that for purposes of this Compliance Certificate, the
representations and warranties contained in subsections (a) and (b) of Section
5.05 of the Agreement shall be deemed to refer to the most recent statements
furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the
Agreement, including the statements in connection with which this Compliance
Certificate is delivered.

5.             The
financial covenant analyses and information set forth on Schedules 2
and 3 attached hereto are true and accurate
in all material respects on and as of the date of this Certificate.

IN WITNESS WHEREOF, the
undersigned has executed this Certificate as of                                         ,
                  .

	
  

  	
  NIC INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 C-2
 

For the Quarter/Year
ended                                       (“Statement Date”)

SCHEDULE 2

to the
Compliance Certificate

($ in 000’s)

	
  I.              Section
  6.12(a) – Minimum EBITDA.

  	
   

  	
   

  	
   

  
	
                  A.            net income:

  	
   

  	
  $

  	
   

  	
   

  
	
                  B.            less income
  or plus loss from discontinued operations
  and extraordinary items:

  	
   

  	
  $

  	
   

  	
   

  
	
                  C.            plus income
  taxes:

  	
   

  	
  $

  	
   

  	
   

  
	
                  D.            plus interest
  expense:

  	
   

  	
  $

  	
   

  	
   

  
	
                  E.             plus
  depreciation, depletion and amortization:

  	
   

  	
  $

  	
   

  	
   

  
	
                  F.             plus non-cash
  expenses, losses or charges deducted from net income:

  	
   

  	
  $

  	
   

  	
   

  
	
                  G.            minus
  non-cash items included in income

  	
   

  	
  $

  	
   

  	
   

  
	
                  H.            Total EBITDA:

  	
   

  	
  $

  	
   

  	
   

  
	
                  I.              Excess (deficient) for covenant compliance (Line I.H.
  less $12,000,000):

  	
   

  	
  $

  	
   

  	
   

  
	
  II.Section 6.12(b) –Tangible Net Worth.

  	
   

  	
   

  	
   

  
	
                  A.            Tangible Net Worth at Statement Date:

  	
   

  	
   

  	
   

  
	
                                  1.   Total
  Tangible Assets:

  	
   

  	
  $

  	
   

  	
   

  
	
                                  2.   Total
  Liabilities (minus non-current portion of Subordinated Liabilities):

  	
   

  	
  $

  	
   

  	
   

  
	
                                  3.   Tangible
  Net Worth (Line II.A.1 less Line II.A.2):

  	
   

  	
  $

  	
   

  	
   

  
	
                  B.            1.   $36,000,000:

  	
   

  	
  $

  	
   

  	
   

  
	
                                  2.   plus the net proceeds from any equity securities issued
  after the date of the Agreement:

  	
   

  	
  $

  	
   

  	
   

  
	
                                  3.   plus any increase in stockholder’s equity resulting from
  the conversion of debt securities to equity security after the date of this
  Agreement:

  	
   

  	
  $

  	
   

  	
   

  

 

 C-3
 

 

	
                                  4.             Minimum
  Required Tangible Net Worth (II.B.1 plus II.B.2 plus II.B.3):

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
                  C.            Excess (deficient) for covenant compliance (Line II.A.3
  less II.B.4):

  	
   

  	
  $

  	
   

  	
   

  
	
  III.           Section
  6.12(h) – Total Funded Debt to EBITDA Ratio.

  	
   

  	
   

  	
   

  
	
                  A.            Total Funded Debt

  	
   

  	
  $

  	
   

  	
   

  
	
                  B.            EBITDA (from I.H)

  	
   

  	
  $

  	
   

  	
   

  
	
                  C.            Ratio (Line III.A. ÷ Line III.B):

  	
   

  	
  to 1.0

  	
   

  
	
  Minimum Required:

  	
   

  	
  1.5 to 1.0

  	
   

  

 

 C-4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]