Document:

Execution
	 

	 
		INTERCREDITOR AGREEMENT
	 

	 
		THIS INTERCREDITOR AGREEMENT
		(“Intercreditor Agreement”) dated as of May 15, 2007 is by and
		between WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association, as
		successor to Congress Financial Corporation, a Delaware corporation, as
		Revolving Loan Agent (as defined below) for the Revolving Loan Lenders (as
		defined below) and THE BANK OF NEW YORK, a New York banking corporation, as
		collateral agent for the Trustee (as defined below) and the Noteholders (as
		defined below) (in such capacity, together with its successors and assigns, if
		any, in such capacity, the “Noteholder Collateral Agent”). Revolving
		Loan Agent and Noteholder Collateral Agent are sometimes individually referred
		to herein as a “Creditor” and collectively as
		“Creditors.”
	 

	 
		W
		I T
		N E
		S S
		E T
		H:
	 

	 
		WHEREAS, Revolving Loan Agent, Revolving
		Loan Lenders and the Debtors (as such term is defined below) have entered into
		a Third Amended and Restated Loan and Security Agreement, dated as of the date
		hereof (as amended, supplemented, and restated or otherwise modified from time
		to time, the “Loan Agreement”) pursuant to which Debtors may borrow
		and, subject to the terms and conditions specified therein, the Revolving Loan
		Agent, on behalf of the Revolving Loan Lenders will from time to time make
		loans in an aggregate principal amount of up to $35,000,000 and arrange for
		letter of credit accommodations in an amount of up to $10,000,000 at any one
		time outstanding to provide funds for the ongoing working capital needs of
		Debtors, which financing arrangements with Debtors are secured by certain
		assets and properties of Debtors; and
	 

	 
		WHEREAS, the Debtors and the Noteholder
		Collateral Agent and Noteholders entered into an Indenture, dated as of the
		date hereof (as amended, supplemented, restated or otherwise modified from time
		to time, the “Note Indenture”) with The Bank of New York, as trustee
		(“Trustee”) governing the rights and duties of Debtors thereunder and
		under the Senior Secured Floating Rate Notes due 2012 in the original aggregate
		principal amount of $185,000,000 (together with any notes issued in exchange
		for such notes and any additional notes issued under the Note Indenture, the
		“Notes”) which Notes are secured by certain assets and properties of
		Debtor; 
	 

	 
		WHEREAS, each of the Creditors desires to
		enter into this Intercreditor Agreement to (i) confirm the relative
		priority of the security interests of Creditors in the assets and properties of
		Debtor and (ii) provide for the orderly sharing among them, in accordance with
		such priorities, of proceeds of such assets and properties upon any foreclosure
		thereon or other disposition thereof.
	 

	 
		NOW THEREFORE, in consideration of the
		mutual benefits accruing to Creditors hereunder and other good and valuable
		consideration, the receipt and sufficiency of which is hereby acknowledged, the
		parties hereto do hereby agree as follows:
	 

	 
		1. DEFINITIONS
	 

	 
		As used above and in this Intercreditor
		Agreement, the following terms shall have the meanings ascribed to them
		below:
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		1.1 “Agreements”
		shall mean, collectively, the Revolving Loan Agreements and the Noteholder
		Agreements.
	 

	 
		1.2 “Capital Stock Assets” shall mean all Capital Stock of Atlantic Express
		Transportation Corp. owned by Atlantic Express Transportation Group, Inc., and
		all Capital Stock of each direct or indirect subsidiary of Atlantic Express
		Transportation Corp. owned by the Atlantic Express Transportation Corp. or any
		such subsidiary, and in each case all proceeds thereof.
	 

	 
		1.3 “Capital Stock” shall mean, with respect to any Person, any and
		all shares, interests (including membership interests in limited liability
		companies), participations, rights (including options, warrants and the like
		convertible or exercisable into shares of Capital Stock) or other equivalents
		(however designated, whether voting or non-voting) of such Person’s
		capital, whether outstanding on, or issued after, the Effective Date.
	 

	 
		1.4 “Collateral”
		shall mean all of the property and interests in property, real or personal,
		tangible or intangible, now owned or hereafter acquired by Debtors or any of
		Obligors in or upon which any or all of Creditors at any time has a Lien, and
		including, without limitation, all proceeds of such property and interests in
		property.
	 

	 
		1.5 “Creditors”
		shall mean, collectively, Noteholder Collateral Agent, on behalf or itself, the
		Trustee and the Noteholders, and Revolving Loan Agent, on behalf of itself and
		the Revolving Loan Lenders and their respective successors and assigns. Each of
		Noteholder Collateral Agent and Revolving Loan Agent being sometimes referred
		to herein individually as a “Creditor”.
	 

	 
		1.6 “Debtors”
		shall mean Atlantic Express Transportation Corp., a New York corporation, and
		substantially all of the subsidiaries of Atlantic Express Transportation Group,
		Inc., and Atlantic Express Transportation Corp., as more particularly set forth
		on Schedule 1 hereto and their respective successors and assigns,
		including, without limitation, a receiver, trustee or debtor-in-possession on
		behalf of such person or on behalf of any such successor or assign.
	 

	 
		1.7 “Enforcement Action” shall mean the exercise by any Creditor of any of
		its material enforcement rights and remedies as a secured creditor under its
		Agreements with respect to the Collateral, applicable law or otherwise at any
		time following the occurrence and during the continuance of an event of default
		under its Agreements (including, without limitation, the solicitation of bids
		from third parties to conduct the liquidation of the Collateral, the engagement
		or retention of sales brokers, marketing agents, investment bankers,
		accountants, appraisers, auctioneers or other third parties for the purposes of
		valuing, marketing, promoting and selling the Collateral, the commencement of
		any action to foreclose on the security interests or liens of such Creditor in
		all or any material portion of the Collateral, notification of account debtors
		to make payments to such Creditor (in the case of Revolving Loan Agent), any
		action to take possession of all or any material portion of the Collateral or
		commencement of any legal proceedings or actions against or with respect to all
		or any portion of the Collateral).
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		1.8 “Fixtures”
		shall mean all fixtures of Debtors, whether now owned and hereafter acquired
		and wherever located and proceeds of the foregoing. The term
		“fixtures” as used in this definition shall mean heating,
		ventilating, air conditioning equipment, boilers, generators, plumbing and
		electrical equipment, wall and floor coverings, walls and ceilings and other
		similar equipment installed in and affixed to the Real Property and any other
		similar equipment which is so related to any particular Real Property that an
		interest therein arises under applicable real estate law.
	 

	 
		1.9 “Insolvency Proceeding” shall mean, as to any Debtor, any of the
		following, occurring after the date hereof: (a) any case or proceeding with
		respect to such Debtor under the U.S. Bankruptcy Code, any other federal, state
		or provincial bankruptcy, insolvency, reorganization or other law affecting
		creditors’ rights generally or any other or similar proceedings of any
		other jurisdiction or otherwise seeking any stay, reorganization, arrangement,
		liquidation, dissolution, composition or readjustment of the obligations and
		indebtedness of such Debtor or (b) any proceeding seeking the appointment of
		any receiver, administrative receiver, receiver and manager, examiner, judicial
		custodian, trustee, liquidator, official manager, administrator or similar
		official for any Debtor or any material part of its properties or (c) any
		proceedings for liquidation, dissolution or other winding up of the business of
		such Debtor or (d) the sale of all or substantially all of the assets or
		capital stock of such Debtor or (e) any assignment for the benefit of creditors
		or any marshaling of assets of such Debtor.
	 

	 
		1.10 “Lien” shall
		mean any mortgage, deed of trust, pledge, hypothecation, assignment, deposit
		arrangement, security interest, encumbrance (including, but not limited to,
		easements, rights of way and the like), lien (statutory or other), security
		agreement or transfer intended as security, including without limitation, any
		conditional sale or other title retention agreement, the interest of a lessor
		under a capital lease or any financing lease having substantially the same
		economic effect as any of the foregoing.
	 

	 
		1.11 “Motor Vehicles” shall mean all motor vehicles, tractors, trailers
		and other like property, whether or not title thereto is governed by a
		certificate of title or ownership.
	 

	 
		1.12 “Note Indenture” shall have the meaning set forth in the second
		recital of the Intercreditor Agreement.
	 

	 
		1.13 “Noteholder Agreements” shall mean, collectively, (a) the Note Indenture,
		(b) the Notes, (c) the Security Agreement, dated of even date herewith, among
		the Debtors and Noteholder Collateral Agent, and (d) all other notes,
		mortgages, deeds of trust, instruments, guarantees and other agreements,
		documents and instruments at any time executed and/or delivered by any Debtor,
		Obligor or any other person with, to or in favor of Noteholder Collateral Agent
		or Noteholders in connection therewith or related thereto, as all of the
		foregoing now exist or may hereafter be amended, modified, supplemented,
		extended, renewed, restated, refinanced, replaced or restructured. 
	 

	 
		1.14 “Noteholder Collateral” shall mean the Noteholder First Priority Real
		Property Collateral and the Noteholder Motor Vehicle Collateral.
	 

	 
		 
	 

	 
	 

	 

	 
		1.15 “Noteholder Debt” shall mean any and all obligations, liabilities
		and indebtedness of every kind, nature and description owing by Debtors or any
		of Obligors to the Noteholders, Trustee and Noteholder Collateral Agent under
		the Noteholder Agreements, including, principal, interest, charges, fees,
		premiums, indemnities and expenses, however evidenced, whether as principal,
		surety, endorser, guarantor or otherwise, whether now existing or hereafter
		arising, whether arising before, during or after the initial or any renewal
		term of the Noteholder Agreements or after the commencement of any case with
		respect to Debtor or any of Obligors under the U.S. Bankruptcy Code or any
		similar statute (including the payment of interest and other amounts which
		would accrue and become due but for the commencement of such case, whether or
		not such amounts are allowed or allowable in whole or in part in such case),
		whether direct or indirect; absolute or contingent, joint or several, due or
		not due, primary or secondary, liquidated or unliquidated, secured or
		unsecured, and whether arising directly or howsoever acquired by the
		Noteholders.
	 

	 
		1.16 “Noteholder First Priority Real Property
		Collateral” shall mean all of the
		Real Property of Debtors and Obligors (including without limitation the Real
		Property of Metro Affiliates, Inc. located at 220 Old Town Road, East Setauket,
		New York, the Real Property of Atlantic Queens Bus Corp. located at 44 North
		Dunton Avenue, Medford, New York, the Real Property of Metro Affiliates, Inc.
		located at 107 Lawson Boulevard, Oceanside, New York, the Real Property of
		Jersey Business Land Co., Inc. located at 230 Red Lion Road, South Hampton, New
		Jersey) and the proceeds of any disposition thereof; provided,
		that, Noteholder First Priority Real Property Collateral
		shall not include the Revolving Loan First Priority Real Property
		Collateral.
	 

	 
		1.17 “Noteholder Motor Vehicle Collateral” shall mean all of the Motor Vehicles owned by
		Debtors in which Noteholder Collateral Agent has a Lien and the proceeds of any
		disposition thereof.
	 

	 
		1.18 “Noteholders” shall mean collectively, the holders of
		Noteholder Debt and their respective successors and assigns; sometimes being
		referred to herein individually as a “Noteholder”.
	 

	 
		1.19 “Obligors”
		shall mean, individually and collectively, any person liable on or in respect
		of the Revolving Loan Debt or the Noteholder Debt, and its successors and
		assigns, including, without limitation, a receiver, trustee or
		debtor-in-possession on behalf of such person or on behalf of any such
		successor or assign, other than Debtors.
	 

	 
		1.20 “Person” or
		“person” shall mean any individual, sole proprietorship,
		partnership, corporation (including, without imitation, any corporation which
		elects subchapter S status under the Internal Revenue Code of 1986, as
		amended), limited liability company, limited liability partnership, business
		trust, unincorporated association, joint stock company, trust, joint venture,
		or other entity or any government or any agency or instrumentality or political
		subdivision thereof.
	 

	 
		1.21 “Real Property” shall mean all real property of Debtors and
		Obligors, whether now owned or hereafter acquired and wherever located,
		including leasehold interests, together
	 

	 
		 
	 

	 
	 

	 

	 
		with all Fixtures located thereon and all
		licenses, easements and appurtenances relating thereto, wherever located and
		the proceeds of all of the foregoing.
	 

	 
		1.22 “Revolving Loan Agent” shall mean Wachovia Bank, National Association,
		in its capacity as agent pursuant to the Loan Agreement, acting for the benefit
		and on behalf of Revolving Loan Lenders, and its successors and assigns (and
		including, without limitation, any successor, assignee or additional person at
		any time acting as agent for the benefit of or on behalf of it and/or Revolving
		Loan Lenders).
	 

	 
		1.23 “Revolving Loan Agreements” shall mean, collectively, (a) the Loan Agreement
		and (b) all agreements, documents and instruments at any time executed and/or
		delivered by any Debtor, Obligor or any other person with, to or in favor of
		Revolving Loan Agent or Revolving Loan Lenders in connection therewith or
		related thereto, as all of the foregoing now exist or may hereafter be amended,
		modified, supplemented, extended, renewed, restated, refinanced, replaced or
		restructured (in whole or in part and including any agreements with, to or in
		favor of any other lender or group of lenders that at any time refinances,
		replaces or succeeds to all or any portion of the Revolving Loan Debt).
	 

	 
		1.24 “Revolving Loan Collateral” shall mean all Collateral except for the
		Noteholder Motor Vehicle Collateral.
	 

	 
		1.25 “Revolving Loan Debt” shall mean, all obligations, liabilities and
		indebtedness of every kind, nature and description owing by Debtor or any of
		Obligors to Revolving Loan Agent and Revolving Loan Lenders, including
		principal, interest, charges, fees, premiums, indemnities and expenses, however
		evidenced, whether as principal, surety, endorser, guarantor or otherwise,
		whether arising under the Revolving Loan Agreements or otherwise (including,
		without limitation the “Obligations” as such term is defined in the
		Revolving Loan Agreements), whether now existing or hereafter arising, whether
		arising before, during or after the initial or any renewal term of the
		Revolving Loan Agreements or after the commencement of any case with respect to
		any Debtor or any of Obligors under the U.S. Bankruptcy Code or any similar
		statute (including the payment of interest and other amounts which would accrue
		and become due but for the commencement of such case, whether or not such
		amounts are allowed or allowable in whole or in part in such case), whether
		direct or indirect, absolute or contingent, joint or several, due or not due,
		primary or secondary, liquidated or unliquidated, secured or unsecured, and
		whether arising directly or howsoever acquired by Revolving Loan Agent or
		Revolving Loan Lenders.
	 

	 
		1.26 “Revolving Loan First Priority Real Property
		Collateral” shall mean the Real
		Property of Metro Affiliates, Inc. located at 46-81 Metropolitan Avenue,
		Ridgewood, New York and the proceeds thereof.
	 

	 
		1.27 “Revolving Loan Lenders” shall mean, collectively, Wachovia Bank, National
		Association and its successors and assigns (including any other lender or group
		of lenders that at any time succeeds to or refinances, replaces or substitutes
		for all or any portion of the Revolving Loan Debt at any time and from time to
		time in accordance with Section
		4.2(c) hereof); sometimes being
		referred to herein individually as a “Revolving Loan Lender”.
	 

	 
		 
	 

	 
	 

	 

	 
		1.28 “Revolving Loan Priority Amount” shall mean the sum of (a) (i) the outstanding
		principal amount of Revolving Loan Debt not to exceed $38,000,000 in the
		aggregate, plus (ii) the aggregate amount of Letter of Credit
		Accommodations and LC Advances (as such terms are defined in the Revolving Loan
		Agreements) in an amount not to exceed $10,000,000, plus (iii) the
		outstanding principal amount of any other Revolving Loan Debt (in excess of the
		Revolving Loan Debt referenced in clause (i) above) to the extent that such
		Revolving Loan Debt is permitted under clause (14) of the definition of
		“Permitted Indebtedness” contained in the Indenture, plus (b) accrued
		but unpaid interest on and fees and charges payable in connection with the
		Revolving Loan Debt set forth in clause (a) above (including, without
		limitation, interest and fees accruing during any Insolvency Proceeding whether
		or not allowable in whole or in part therein), plus (c)
		Revolving Loan Agent’s costs and expenses paid or incurred and other
		payments made in connection with collecting the Revolving Loan Debt and
		enforcing Revolving Loan Lenders’ rights and remedies under the Revolving
		Loan Agreements and applicable law, to the extent that such costs, expenses and
		payments are chargeable to or are required to be paid or reimbursed by Debtors
		under the Revolving Loan Agreements (including, without limitation, such
		amounts arising during any Insolvency Proceeding whether or not allowable in
		whole or in part therein).
	 

	 
		1.29 “Secured Debt” shall mean either the Noteholder Debt or the
		Revolving Loan Debt, or any or all of these, as the case may be.
	 

	 
		All terms defined in the Uniform Commercial
		Code, unless otherwise defined herein shall have the meanings set forth
		therein. All references to any term in the plural shall include the singular
		and all references to any term in the singular shall include the plural.

	 

	 
		2. SECURITY INTERESTS; PRIORITIES; REMEDIES
	 

	 
		2.1 Acknowledgement of Liens. Each Creditor hereby acknowledges that:
	 

	 
		(a) Noteholder Collateral Agent, for the
		benefit of the Noteholders, has been granted a Lien upon the Collateral
		pursuant to the Noteholder Agreements to secure the Noteholder Debt;
	 

	 
		(b) Revolving Loan Agent, for the benefit of
		Revolving Loan Lenders has been granted a Lien upon all of the Collateral
		(other than the Noteholder Motor Vehicle Collateral) pursuant to the Revolving
		Loan Agreements to secure the Revolving Loan Debt; and
	 

	 
		(c) Neither the Revolving Loan Agent nor the
		Noteholder Collateral Agent has a Lien on the Capital Stock Assets.
	 

	 
		2.2 Priority of Liens. Notwithstanding the time of incurrence of any Secured
		Debt, the order or method of attachment or perfection of any Liens securing any
		Secured Debt, the time or order of filing or recording of financing statements
		or other documents filed or recorded to perfect any Lien upon any Collateral,
		the rules for determining priority under any law governing relative priorities
		of Liens on the Collateral or any conflicting terms or conditions which may be
		contained in any of the Agreements: 
	 

	 
		 
	 

	 
	 

	 

	 
		(a) The following Lien priorities shall
		strictly apply in defining the respective Lien priorities of each Creditor in
		the Revolving Loan Collateral (other than the Noteholder First Priority Real
		Property Collateral): 
	 

	 
		(i) first: the Liens
		upon such Collateral of Revolving Agent and Revolving Loan Lenders to the full
		extent of the Revolving Loan Debt; and
	 

	 
		(ii) second: the
		Liens upon such Collateral of Noteholder Collateral Agent, Trustee and
		Noteholders to the full extent of the Noteholder Debt.
	 

	 
		(b) The following Lien priorities shall
		strictly apply in defining the respective Lien priorities of each Creditor in
		the Noteholder First Priority Real Property Collateral: 
	 

	 
		(i) first: the Liens
		upon such Collateral of Noteholder Collateral Agent, Trustee and Noteholders to
		the full extent of the Noteholder Debt; and 
	 

	 
		(ii) second: the
		Liens upon such Collateral of Revolving Loan Agent and Revolving Loan Lenders
		to the full extent of the Revolving Loan Debt.
	 

	 
		(c) Only Noteholder Collateral Agent has a
		Lien on the Noteholder Motor Vehicle Collateral.
	 

	 
		(d) Notwithstanding anything to the contrary
		contained herein, the principal amount of the Revolving Loan Debt in excess of
		Revolving Loan Priority Amount shall not be entitled to the benefit of the
		priority of the Liens of Revolving Loan Agent provided for in this
		Section 2.2.
	 

	 
		2.3 Proceeds of Revolving Loan Collateral. Subject to Section 2.7
		below, the proceeds of any sale, disposition or other realization upon all or
		any part of the Revolving Loan Collateral (other than Noteholder First Priority
		Real Property Collateral) in connection with an Enforcement Action shall be
		applied in the following order of priorities:
	 

	 
		(a) first, to
		Revolving Loan Agent for the payment in full in cash or other immediately
		available funds of the outstanding Revolving Loan Debt up to the Revolving Loan
		Priority Amount, in such order as may be provided in the Revolving Loan
		Agreements;
	 

	 
		(b) second, to the
		Noteholder Collateral Agent for the payment in full in cash or other
		immediately available funds of all of the Noteholder Debt in such order as may
		be provided in the Noteholder Agreements;
	 

	 
		(c) third, to the
		Revolving Loan Agent for the payment of the Revolving Debt in excess of the
		Revolving Loan Priority Amount until the Revolving Debt has been paid in full
		in cash or other immediately available funds; and
	 

	 
		(d) fourth, to the
		Debtors, or their respective successors or assigns or as required by applicable
		law.
	 

	 
		 
	 

	 
	 

	 

	 
		2.4 Proceeds of Noteholder First Priority Real Property
		Collateral. Subject to Section 2.7
		below, the proceeds of any sale, disposition or other realization upon all or
		any part of the Noteholder First Priority Real Property Collateral shall be
		applied in the following order of priorities:
	 

	 
		(a) first, to the
		Noteholder Collateral Agent for the payment of the Noteholder Debt until such
		Noteholder Debt has been paid in full in cash or other immediately available
		funds, in such order as may be provided in the Noteholder Agreements; 
	 

	 
		(b) second, to the
		Revolving Loan Agent for the payment in full in cash or other immediately
		available funds of the outstanding Revolving Loan Debt up to the Revolving
		Priority Amount, in such order as may be provided for in the Revolving Loan
		Agreements; and 
	 

	 
		(c) third, to the
		Revolving Loan Agent for the payment of the Revolving Debt in excess of the
		Revolving Loan Priority Amount until the Revolving Debt has been paid in full
		in cash or other immediately available funds; and
	 

	 
		(d) fourth, to the
		Debtors, or their respective successors or assigns or as required by applicable
		law.
	 

	 
		2.5 Proceeds of Noteholder Motor Vehicle
		Collateral. Subject to Section 2.7
		below, the proceeds of any sale, disposition or other realization upon all or
		any part of the Noteholder Motor Vehicle Collateral shall be applied to the
		payment in full in cash or other immediately available funds of the Noteholder
		Debt in whatever manner and order Noteholder Collateral Agent chooses in
		accordance with the Noteholder Agreements and applicable law. 
	 

	 
		2.6 Priorities Unaffected by Action on
		Inaction. The lien priorities provided
		in Section 2.2 shall not be altered or otherwise affected by any
		amendment, modification, supplement, extension, renewal, restatement,
		replacement or refinancing of the Revolving Loan Debt or the Noteholder Debt
		nor by any action or inaction which any Creditor may take or fail to take in
		respect of the Collateral.
	 

	 
		2.7 Perfection; No Contest of Liens. Subject to Section 4.5,
		each Creditor shall be solely responsible for perfecting and maintaining the
		perfection of its Lien in and to each item constituting the Collateral in which
		such Creditor has been granted a Lien. The foregoing provisions of this
		Intercreditor Agreement are intended solely to govern the respective Lien
		priorities as between the Creditors and shall not impose on any Creditor any
		obligations in respect of the disposition of proceeds of foreclosure on any
		Collateral which would conflict with prior perfected claims therein in favor of
		any other person or any order or decree of any court or other governmental
		authority or any applicable law. Each Creditor agrees that it will not contest
		the validity, perfection, priority or enforceability of the Liens upon the
		Collateral of the other Creditors and that as between Creditors, the terms of
		this Intercreditor Agreement shall govern even if part or all of the Revolving
		Loan Debt or the Noteholder Debt or the Liens securing payment and performance
		thereof are avoided, disallowed, set aside or otherwise invalidated in any
		judicial proceeding or otherwise.
	 

	 
		2.8 Right to Enforce Security Interests.
	 

	 
		 
	 

	 
	 

	 

	 
		(a) With respect to (i) the Noteholder
		Collateral Agent, so long as any Noteholder Debt remains outstanding and (ii)
		the Revolving Loan Agent, so long as any Revolving Loan Debt remains
		outstanding, the Agent with the senior Lien on any of the Collateral will have
		the sole and exclusive right to control, administer, account for and otherwise
		deal with such Collateral, and to determine the manner of every sale or other
		disposition of such Collateral upon enforcement of such Agent’s interest
		therein or the enforcement of any other right or remedy with respect thereto.
		The Agent with the senior Lien on any of the Collateral may foreclose on such
		Collateral in any order in which it in its sole discretion, deems
		appropriate.
	 

	 
		(b) The Noteholder Collateral Agent will
		have the sole and exclusive right to control, administer, account for and
		otherwise deal with the Noteholder Motor Vehicle Collateral, and to determine
		the manner of every sale or other disposition of the Noteholder Motor Vehicle
		Collateral in connection with an Enforcement Action. The Collateral Agent may
		foreclose on the Noteholder Motor Vehicle Collateral in any order in which it
		in its sole discretion deems appropriate.
	 

	 
		2.9 Rights of Creditor with the Most Senior
		Lien.
	 

	 
		(a) Notwithstanding anything to the contrary
		contained in any of the Agreements, only the Creditor with the most senior Lien
		in the Collateral shall have the right to restrict or permit, or approve or
		disapprove, the sale, transfer or other disposition of such Collateral in
		connection with an Enforcement Action. To the extent any Collateral is sold or
		otherwise disposed of by or on behalf of or at the request of the Creditor with
		the senior Lien (including by the Debtor with the consent of the Creditor with
		the most senior Lien in the Collateral) in connection with an Enforcement
		Action, each Creditor with a junior Lien on such Collateral shall: (i) be
		deemed to have automatically and without further action released and terminated
		any Liens it may have on such Collateral, (ii) be deemed to have authorized the
		Creditor with the most senior Lien to file UCC amendments and terminations
		covering the Collateral so sold or otherwise disposed of on behalf of each
		Creditor with a junior Lien, (iii) promptly upon the request of the
		Creditor with the most senior Lien in the Collateral execute and deliver such
		other release documents and confirmations of the authorization to file UCC
		amendments and terminations (and other release documents) provided for herein,
		in each case as the Creditor with the most senior Lien in the Collateral may
		require in connection with such sale or other disposition by or on behalf of
		such Creditor (including by the Debtor with the consent of the Creditor with
		the most senior Lien in the Collateral) to evidence and effectuate such
		termination and release, provided,
		that, any such release or UCC amendment or termination by or
		on behalf of Creditor or Creditors, as the case may be, with a junior Lien in
		such Collateral shall not extend to or otherwise affect any of the rights, if
		any, of such Creditor’s rights to the proceeds from any such sale or other
		disposition of such Collateral upon the payment and satisfaction in full of the
		indebtedness owing to the Creditor with the most senior Lien, and (iv) be
		deemed to have consented under the Agreements of the each Creditor with a
		junior Lien thereon and the Lenders or Noteholders, as the case may be, for
		whom such Creditor is acting to such sale or other disposition. Any sale or
		other disposition of any of the Collateral by the Creditor with the most senior
		lien thereon (other than sales supervised by a court) under the Uniform
		Commercial Code or other applicable law shall be conducted in a
		commercially
	 

	 
		 
	 

	 
	 

	 

	 
		reasonable manner under the circumstances
		based on such information available to the Creditor with the most senior Lien
		thereon relevant to such determination.
	 

	 
		(b) To the extent that the Revolving Loan
		Priority Amount has been paid in full but Revolving Debt remains outstanding,
		Revolving Loan Agent shall, at its option, or at the written request of
		Noteholder Collateral Agent, turn over the enforcement proceedings with respect
		to Revolving Loan Collateral to Noteholder Collateral Agent, and at all times
		thereafter, Noteholder Collateral Agent shall be deemed to be the Creditor with
		the most senior Lien for purposes of this Section 2.9;
		provided, that, the
		priorities of payment in respect of the Secured Debt set forth herein shall
		remain unchanged.
	 

	 
		2.10 Rights of Junior Creditor. Each Creditor with a junior Lien on any Collateral
		will not, directly or indirectly, (a) exercise any of its rights or remedies
		upon a default or event of default by Debtor or any of Obligors under its
		Agreements against such Collateral, or (b) seek to foreclose or realize upon
		(judicially or non judicially) its junior Lien on such Collateral or assert any
		claims or interest therein (including, without limitation, by setoff or
		notification of account debtors) or (c) take any other action that would
		interfere in any manner with the rights of the Creditor with the most senior
		Lien in such Collateral. Notwithstanding the foregoing, if Insolvency
		Proceeding shall be commenced against any Debtor, each Creditor shall be
		entitled to file proofs of claim and commence other proceedings in order to
		evidence and protect its interest in the Collateral so long as such filings are
		not in any manner inconsistent with the provisions of this Intercreditor
		Agreement.
	 

	 
		2.11 Access to Noteholder First Priority Real Property
		Collateral.
	 

	 
		(a) In the event that Noteholder Collateral
		Agent or, subject to the provisions of this Intercreditor Agreement, Revolving
		Loan Agent shall acquire control or possession of any of the Noteholder First
		Priority Real Property Collateral, or shall, through the exercise of remedies
		under its Agreements, sell or otherwise transfer any of the Real Property of
		any Debtor to any third party (a “Third Party Purchaser”), Noteholder Collateral Agent shall permit
		Revolving Loan Agent (or require as a condition of such sale to a Third Party
		Purchaser that the Third Party Purchaser agree to permit Revolving Loan Agent),
		at its option, to enter and use any or all of the Noteholder First Priority
		Real Property Collateral during normal business hours in order to inspect any
		Collateral, remove or take any action with respect to any Revolving Loan
		Collateral (other than any Noteholder First Priority Real Property Collateral)
		or to enforce Revolving Loan Agent’s and Revolving Loan Lenders’
		rights with respect to any such Revolving Loan Collateral, including, but not
		limited to, the examination and removal of such Revolving Loan Collateral and
		the examination and duplication of the books and records of the applicable
		Debtor related to such Revolving Loan Collateral or to otherwise handle, deal
		with or dispose of any such Revolving Loan Collateral, such right to include,
		without limiting the generality of the foregoing, the right to conduct one or
		more public or private sales or auctions thereon. The access and use rights of
		Revolving Loan Agent set forth in this Section as to the Noteholder First
		Priority Real Property Collateral, to the extent applicable, shall continue
		until the date one hundred twenty (120) days after the earlier of (i) the date
		Revolving Loan Agent receives written notice from Noteholder Collateral Agent
		that Noteholder Collateral Agent has commenced a foreclosure proceeding or
		other legal proceeding to take possession of such Noteholder First Priority
		Real Property Collateral or to appoint a receiver of rents or (ii) the date
		that Revolving
	 

	 
		 
	 

	 
	 

	 

	 
		Loan Agent commences an Enforcement Action
		with respect to the Collateral subject to its senior Lien. In no event shall
		the use by Revolving Loan Agent of the Noteholder First Priority Real Property
		Collateral constitute an assumption by Revolving Loan Agent or any Revolving
		Loan Lender of the Noteholder Agreements.
	 

	 
		(b) Revolving Loan Lenders shall indemnify
		and hold harmless Noteholder Collateral Agent, Noteholders and any Third Party
		Purchaser from and against (i) any loss, liability, claim, damage or expense
		arising out of any claim asserted by any third party as a result of any acts or
		omissions by Revolving Loan Agent in connection with the exercise by Revolving
		Loan Agent, of the rights of access and use set forth in this Section 2.11 and
		(ii) any damage to any of the Noteholder First Priority Real Property
		Collateral caused by any act of Revolving Loan Agent. In no event shall
		Revolving Loan Agent have any liability to Noteholder Collateral Agent,
		Noteholders, or any Third Party Purchaser pursuant to this Section 2.11 or
		otherwise solely as a result of any condition on or with respect to the
		Noteholder First Priority Real Property Collateral existing prior to the date
		of the exercise by Revolving Loan Agent of its rights under this
		Section 2.11.
	 

	 
		2.12 Access to Revolving Loan First Priority Real Property
		Collateral.
	 

	 
		(a) In the event that Revolving Loan Agent
		or, subject to the provisions of this Intercreditor Agreement, Noteholder
		Collateral Agent, shall acquire control or possession of any of the Revolving
		Loan First Priority Real Property Collateral, or shall, through the exercise of
		remedies under its Agreements, sell or otherwise transfer any of the Real
		Property of any Debtor to any third party (a “Third Party Purchaser”), Revolving Loan Agent shall permit Noteholder
		Collateral Agent (or require as a condition of such sale to a Third Party
		Purchaser that the Third Party Purchaser agree to permit Noteholder Collateral
		Agent), at its option, to enter and use any or all of the Revolving Loan First
		Priority Real Property Collateral during normal business hours in order to
		inspect any Collateral, remove or take any action with respect to the
		Noteholder Collateral or to enforce Noteholder Collateral Agent’s rights
		with respect to the Noteholder Collateral, including, but not limited to, the
		examination and removal of such Noteholder Collateral and the examination and
		duplication of the books and records of the applicable Debtor related to such
		Noteholder Collateral or to otherwise handle, deal with or dispose of any such
		Noteholder Collateral, such right to include, without limiting the generality
		of the foregoing, the right to conduct one or more public or private sales or
		auctions thereon. The rights of access and use of Noteholder Collateral Agent
		set forth in this Section as to the Revolving Loan First Priority Real Property
		Collateral, to the extent applicable, shall continue until the date one hundred
		twenty (120) days after the earlier of (i) the date Noteholder Collateral Agent
		receives written notice from Revolving Loan Agent that Revolving Loan Agent has
		commenced a foreclosure proceeding or other legal proceeding to take possession
		of such Revolving Loan First Priority Real Property Collateral or to appoint a
		receiver of rents or (ii) the date that Noteholder Collateral Agent commences
		an Enforcement Action with respect to the Collateral subject to its senior
		Lien. In no event shall the use by Noteholder Collateral Agent of the Revolving
		Loan First Priority Real Property Collateral constitute an assumption by
		Noteholders of the Revolving Loan Agreements.
	 

	 
		(b) Noteholders shall indemnify and hold
		harmless Revolving Loan Agent and Revolving Loan Lenders and any Third Party
		Purchaser from and against (i) any loss,
	 

	 
		 
	 

	 
	 

	 

	 
		liability, claim, damage or expense arising
		out of any claim asserted by any third party as a result of any acts or
		omissions by Noteholder Collateral Agent in connection with the exercise by
		Noteholder Collateral Agent, of the rights of access and use set forth in this
		Section 2.12 and (ii) any damage to any of the Revolving Loan
		First Priority Real Property Collateral caused by any act of Noteholder
		Collateral Agent. In no event shall Noteholder Collateral Agent and Noteholders
		have any liability to Revolving Loan Agent or any Third Party Purchaser
		pursuant to this Section
		2.12 or otherwise solely as a result of
		any condition on or with respect to the Revolving Loan First Priority Real
		Property Collateral existing prior to the date of the exercise by Noteholder
		Collateral Agent of its rights under this Section 2.12.
	 

	 
		2.13 Right to Cure.
		Revolving Loan Agent shall have the right one (1) time in any twelve (12) month
		period, but not any obligation, to cure any events of default under the
		Noteholder Agreements for the account of Debtor or any of Obligors within
		fifteen (15) days after the receipt by Revolving Loan Agent of written notice
		of such event of default from the Creditor or thereafter with the consent of
		Creditor. In no event shall Revolving Loan Agent, by virtue of the payment of
		amounts or performance of any obligation required to be paid or performed by
		Debtor or any of Obligors, be deemed to have assumed any obligation of Debtor
		or any of Obligors to Noteholders or any other person.
	 

	 
		2.14 Notices of Default. Each Creditor shall give to the others concurrently
		with the giving thereof to Debtor, (a) a copy of any written notice by such
		Creditor of either a default or an event of default under its Agreements with
		Debtors, or written notice of demand of payment from Debtors, and (b) any
		written notice sent by such Creditor to Debtors at any time an event of default
		under such Creditor’s Agreements exists stating such Creditor’s
		intention to exercise any of its enforcement rights or remedies, including
		written notice pertaining to any foreclosure on any of the Collateral or other
		judicial or non judicial remedy in respect thereof, and any legal process
		served or filed in connection therewith; provided,
		that the failure of any party to give notice as required
		hereby shall not affect the relative priorities of Creditor’s respective
		Liens as provided herein or the validity or effectiveness of any such notice as
		against any Debtor and shall not give rise to any claim or cause of action by
		any Creditor against the other Creditors. Each Creditor shall, upon the request
		of the other, provide to such other Creditor a statement of the amount of the
		indebtedness of Debtors then owing to it. Debtors hereby authorize and consent
		to each Creditor sending any such notices and other information to the
		other.
	 

	 
		2.15 Access to Books and Records. In the event that any of Creditors shall, in the
		exercise of its respective rights under its Agreements or otherwise, receive
		possession or control of any books and records of Debtors or any of Obligors
		which contain information identifying or pertaining to any of the property of
		Debtors or any of Obligors in which the other Creditors have been granted a
		Lien, it shall notify the other Creditors that it has received such books and
		records and shall, as promptly as practicable thereafter, make available to the
		other Creditors such books and records for inspection and duplication.
	 

	 
		3. REPRESENTATIONS AND WARRANTIES
	 

	 
		3.1 Additional Revolving Loan Agent
		Representations. Revolving Loan Agent
		hereby represents and warrants to the Noteholder Collateral Agent and each
		Noteholder that:
	 

	 
		 
	 

	 
	 

	 

	 
		(a) the execution, delivery and performance
		of this Intercreditor Agreement by the Revolving Loan Agent, on behalf of each
		Revolving Loan Lender is within the powers of such Revolving Loan Agent under
		the Revolving Loan Agreements, and has been duly authorized by such Revolving
		Loan Agent on behalf of the Revolving Loan Lender;
	 

	 
		(b) the Revolving Loan Agent has been duly
		directed to execute, deliver and perform this Intercreditor Agreement, on
		behalf of the Revolving Loan Lender pursuant to the terms of the Revolving Loan
		Agreements, and this Intercreditor Agreement constitutes the legal, valid and
		binding obligations of Revolving Loan Agent, enforceable against the Revolving
		Loan Agent, in its capacity as agent under the Revolving Loan Agreements, and
		Revolving Loan Lenders in accordance with its terms and shall be binding on
		each of them; 
	 

	 
		(c) as of the date hereof, no default or
		event of default, or event which with notice or passage of time or both would
		constitute an event of default exists or has occurred under the Revolving Loan
		Agreements; and
	 

	 
		(d) the Revolving Loan Debt is not subject
		to any lien, security interest, financing statements, subordination, assignment
		or other claim.
	 

	 
		3.2 Additional Noteholder Representations. Noteholder Collateral Agent hereby represents and
		warrants to the Revolving Loan Agent and each Revolving Loan Lender
		that:
	 

	 
		(a) the execution, delivery and performance
		of this Agreement by the Noteholder Collateral Agent, on behalf of each
		Noteholder is within the powers of the Noteholder Collateral Agent under the
		Indenture, and has been duly authorized by such Noteholder Collateral Agent on
		behalf of the Noteholders.
	 

	 
		(b) the requisite majority of Noteholders
		have consented to the Noteholder Collateral Agent’s execution, deliverance
		and performance of this Intercreditor Agreement, on behalf of the Noteholders
		pursuant to the terms of the Indenture and the other Noteholder Agreements and
		this Agreement constitutes the legal, valid and binding obligations of each
		Noteholder, enforceable against the Noteholder Collateral Agent, in its
		capacity as collateral agent under the Noteholder Agreements, and each
		Noteholder in accordance with its terms and shall be binding on each of
		them;
	 

	 
		(c) as of the date hereof, no default or
		event of default, or event which with notice or passage of time or both would
		constitute an event of default exists or has occurred under the Noteholder
		Agreements; and
	 

	 
		(d) the Noteholder Debt is not subject to
		any lien, security interest, financing statements, subordination, assignment or
		other claim, except to the extent that such holder or beneficiary thereof is
		bound by the terms hereof.
	 

	 
		4. MISCELLANEOUS
	 

	 
		4.1 Amendments. Any
		waiver, permit, consent or approval by any of Creditors of or under any
		provision, condition or covenant to this Intercreditor Agreement must be in
		writing and shall be effective only to the extent it is set forth in writing
		and as to the specific facts or
	 

	 
		 
	 

	 
	 

	 

	 
		circumstances covered thereby. Any amendment
		of this Intercreditor Agreement must be in writing and signed by each of the
		parties to be bound thereby.
	 

	 
		4.2 Successors and Assigns.
	 

	 
		(a) This Intercreditor Agreement shall be
		binding upon each Creditor and its successors and assigns and shall inure to
		the benefit of each Creditor and its successors, participants and
		assigns.
	 

	 
		(b) Each Creditor reserves the right to
		grant participations in, or otherwise sell, assign, transfer or negotiate all
		or any part of, or any interest in, the Revolving Loan Debt and the Noteholder
		Debt; provided, that, no
		Creditor shall be obligated to give any notices to or otherwise in any manner
		deal directly with any participant in the Revolving Loan Debt or the Noteholder
		Debt, as the case may be, and no participant shall be entitled to any rights or
		benefits under this Intercreditor Agreement except through the Creditor with
		which it is a participant. In connection with any participation or other
		transfer or assignment, a Creditor (i) may, subject to its Agreements, disclose
		to such assignee, participant or other transferee or assignee all documents and
		information which such Creditor now or hereafter may have relating to Debtor,
		any of Obligors or the Collateral and (ii) shall disclose to such participant
		or other transferee or assignee the existence and terms and conditions of this
		Intercreditor Agreement. In the case of an assignment or transfer, the assignee
		or transferee acquiring any interest in the Revolving Loan Debt or the
		Noteholder Debt, as the case may be, shall, to the extent such assignee or
		transferee is not represented by a Creditor, execute and deliver to each of
		Creditors a written acknowledgement of receipt of a copy of this Intercreditor
		Agreement and the written agreement by such person to be bound by the terms of
		this Intercreditor Agreement.
	 

	 
		(c) In connection with any assignment or
		transfer of any or all of the Revolving Loan Debt or the Noteholder Debt, or
		any or all rights of any Creditor in the property of Debtors or any of Obligors
		(other than pursuant to a participation), each Creditor agrees to execute and
		deliver an agreement containing terms substantially identical to those
		contained herein in favor of any such assignee or transferee and, in addition,
		will execute and deliver an agreement containing terms substantially identical
		to those contained herein in favor of any third person who succeeds to or
		refinances, replaces or substitutes for any or all of financing of Debtor and
		of any of Obligors, whether such successor or replacement financing occurs by
		transfer, assignment, “takeout” or any other means or vehicle.

	 

	 
		4.3 Insolvency. This
		Intercreditor Agreement shall be applicable both before and after the filing of
		any petition by or against any Debtor or any of Obligors under the U.S.
		Bankruptcy Code and all converted or succeeding cases in respect thereof, and
		all references herein to Debtor or any of Obligors shall be deemed to apply to
		a trustee for Debtor or any of Obligors and Debtor or any of Obligors as
		debtor-in-possession. The relative rights of Creditors to repayment of the
		Revolving Loan Debt or the Noteholder Debt, respectively, and in or to any
		distributions from or in respect of Debtor or any of Obligors or any Collateral
		or proceeds of Collateral, shall continue after the filing thereof on the same
		basis as prior to the date of the petition, subject to any court order
		approving the financing of, or use of cash collateral by, Debtor or any of
		Obligors as debtor-in-possession.
	 

	 
		 
	 

	 
	 

	 

	 
		4.4 Bankruptcy Financing. If any Debtor shall become subject to a proceeding
		under the U.S. Bankruptcy Code and if Revolving Loan Agent desires to permit
		the use of cash collateral or to provide financing to Debtors under either
		Section 363 or Section 364 of the U.S. Bankruptcy Code, Noteholder Collateral
		Agent and Noteholders agree as follows: (a) adequate notice shall have been
		provided for such financing or use of cash collateral if Noteholder Collateral
		Agent receive notice three (3) business days prior to the entry of the order
		approving such financing or use of cash collateral and (b) no objection will be
		raised by Noteholder Collateral Agent to any such financing on the ground of a
		failure to provide “adequate protection” for the Liens of Noteholder
		Collateral Agent or any other grounds, provided,
		that, (i) Noteholder Collateral Agent retains a Lien on
		the Collateral (including proceeds thereof arising after the commencement of
		such proceeding) and obtains a replacement Lien on post-petition Collateral to
		the same extent and with the same priority as existed prior to the commencement
		of the proceeding under the U.S. Bankruptcy Code, and (ii) the maximum amount
		outstanding under such post-petition financing, together with the aggregate
		principal amount of the pre-petition Revolving Loan Debt, shall not exceed the
		Revolving Loan Priority Amount. For purposes of this Section, notice of a
		proposed financing or use of cash collateral shall be deemed given when given,
		in the manner prescribed by Section
		4.6 hereof, to Noteholder Collateral
		Agent.
	 

	 
		4.5 Bailee for Perfection. Each Creditor hereby appoints each other Creditor, and
		each hereby agrees to serve, as agent and bailee for the other Creditors for
		the limited purpose of perfecting their respective Liens on the Collateral
		which may at any time be in its possession or under its control during the term
		of this Intercreditor Agreement. The Creditor having the most senior Lien
		thereon shall not have any duty to protect or preserve any rights pertaining to
		any of the Collateral in its possession and each of the other Creditors hereby
		waives and releases the Creditor holding the most senior Lien from all claims
		and liabilities at any time arising pursuant to the role of such senior
		Creditor as agent and bailee with respect to the Collateral in its actual
		possession (or control) other than gross negligence or willful misconduct. The
		Creditor with the most senior Lien on any Collateral shall, after all
		obligations of Debtor to it have been fully and finally paid and performed,
		deliver the remainder of Collateral, if any, and the books and records relating
		to such Collateral in its possession (or under its control) to the Creditor
		with the next most senior Lien as set forth herein, except in the event and to
		the extent that (a) such senior Creditor has retained or otherwise acquired
		such Collateral in full or partial satisfaction of the Obligations owing to
		such senior Creditor, (b) such Collateral is sold or otherwise disposed of by
		such Creditor or by Debtor as provided herein or (c) except as may otherwise be
		required by applicable law or any court order.
	 

	 
		4.6 Notices. All
		notices, requests and demands to or upon the respective parties hereto shall be
		in writing and shall be deemed duly given, made or received: if delivered in
		person, immediately upon delivery; if by telex, telegram or facsimile
		transmission, immediately upon sending and upon confirmation of receipt; if by
		nationally recognized overnight courier service with instructions to deliver
		the next business day, one (1) business day after sending; and if mailed by
		certified mail, return receipt requested, five (5) days after mailing to the
		parties at their addresses set forth below (or to such other addresses as the
		parties may designate in accordance with the provisions of this
		Section):
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				  To Revolving Loan Agents: 
				

			 	
				
				   
				

			 	
				
				  Wachovia Bank, National
				  Association
 1133 Avenue of the
				  Americas
 New York, New York
				  10036
 Attention: Portfolio
				  Manager
 Fax: (212) 545-4283
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  To Noteholder Collateral
				  Agent:
				

			 	
				
				   
				

			 	
				
				  The Bank of New York 

				  Corporate Trust Department 

				  101 Barclay Street, Floor 8W 

				  New York, New York 10286 

				  Attention: Julie Salovitch Miller

				  Fax: 212-815-[    ]
				

			 

 

	 
		 
	 

	 
		Any of the above Creditors may change the
		address(es) to which all notices, requests and other communications are to be
		sent by giving written notice of such address change to the other Creditor in
		conformity with this Section
		4.6, but such change shall not be
		effective until notice of such change has been received by the other
		Creditors.
	 

	 
		4.7 Counterparts; Effective Date. This Intercreditor Agreement may be executed in any
		number of counterparts, each of which shall be an original with the same force
		and effect as if the signatures thereto and hereto were upon the same
		instrument. Delivery of an executed counterpart of a signature page to this
		Intercreditor Agreement by facsimile shall be effective as delivery of a
		manually executed counterpart of this Intercreditor Agreement. This Agreement
		shall become effective (the “Effective Date”) when (i) the Loan
		Agreement has been duly executed and delivered by each party thereto and is
		effective by its terms, (ii) the Indenture has been duly executed and delivered
		by each party thereto and is effective by its terms, and (iii) counterparts of
		this Intercreditor Agreement has been duly executed and delivered on behalf of
		each party hereto
	 

	 
		4.8 Governing Law.
		The validity, interpretation and enforcement of this Intercreditor Agreement
		and any dispute arising out of the relationship between the parties hereto
		whether in contract, tort, equity or otherwise, shall be governed by the
		internal laws of the State of New York but excluding any principles of
		conflicts of law or other rule of law that would cause the application of the
		law of any jurisdiction other than the laws of the State of New York.
	 

	 
		4.9 Consent to Jurisdiction; Waiver of Jury
		Trial. Each of the parties hereto
		hereby irrevocably consents to the non-exclusive jurisdiction of Supreme Court
		of New York, New York County and the United States District Court for the
		Southern District of New York, New York County and waives trial by jury in any
		action or proceeding with respect to this Intercreditor Agreement. The Bank of
		New York executes this Agreement solely in its capacity as Noteholder
		Collateral Agent, and as such there is no recourse against The Bank of New
		York, individually
	 

	 
		4.10 Complete Agreement. This written Intercreditor Agreement is intended by
		the parties as a final expression of their agreement and is intended as a
		complete statement of the terms and conditions of their agreement.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		4.11 No Third Parties Benefitted. Except as expressly provided in Section 4.2,
		this Intercreditor Agreement is solely for the benefit of the Creditors and
		their respective successors, participants and assigns, and no other person
		shall have any right, benefit, priority or interest under, or because of the
		existence of, this Intercreditor Agreement.
	 

	 
		4.12 Disclosures; Non-Reliance. Each Creditor has the means to, and shall in the
		future remain, fully informed as to the financial condition and other affairs
		of Debtors and no Creditor shall have any obligation or duty to disclose any
		such information to any other Creditor. Except as expressly set forth in this
		Intercreditor Agreement, the parties hereto have not otherwise made to each
		other nor do they hereby make to each other any warranties, express or implied,
		nor do they assume any liability to each other with respect to: (a) the
		enforceability, validity, value or collectability of any of the Revolving Loan
		Debt or the Noteholder Debt or any guarantee or security which may have been
		granted to any of them in connection therewith, (b) any Debtor’s or
		Obligors’ title to or right to transfer any of the Collateral, or (c) any
		other matter except as expressly set forth in this Intercreditor
		Agreement.
	 

	 
		4.13 Term. This
		Intercreditor Agreement is a continuing agreement and shall remain in full
		force and effect until the indefeasible satisfaction in full of all of the
		Revolving Loan Debt and the Noteholder Debt.
	 

	 
		[REMAINDER OF THIS PAGE INTENTIONALLY LEFT
		BLANK]
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		IN WITNESS WHEREOF, the parties have caused
		this Intercreditor Agreement to be duly executed as of the day and year first
		above-written.
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  WACHOVIA BANK, NATIONAL
				  ASSOCIATION,
     as
				  Revolving Loan Agent
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 
 By:
				

			 	
				
				  /s/ Herbert C. Korn
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  THE BANK OF NEW YORK, solely in its
				  capacity
     as
				  Noteholder Collateral Agent
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 
 By:
				

			 	
				
				  /s/ Julie Salovitch-Miller
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		Intercreditor Agreement
	 

	 
		 
	 

	 
	 

	 

	 
		The undersigned hereby acknowledges and
		agrees to the foregoing terms and provisions. By its signature below, the
		undersigned agrees that it will, together with its successors and assigns, be
		bound by the provisions hereof.
	 

	 
		The undersigned agrees that any of Creditors
		holding Collateral does so as bailee (under the UCC) for each other of
		Creditors which has a Lien on such Collateral and is hereby authorized to and
		may turn over to such other Creditor upon request therefor any such Collateral,
		after all obligations and indebtedness of the undersigned to the bailee
		Creditor have been fully paid and performed.
	 

	 
		The undersigned acknowledges and agrees
		that: (i) although it may sign this Intercreditor Agreement it’s not a
		party hereto and does not and will not receive any right, benefit, priority or
		interest under or because of the existence of the foregoing Intercreditor
		Agreement, and (ii) it will execute and deliver such additional documents and
		take such additional action as may be necessary or desirable in the reasonable
		opinion of any of Creditors to effectuate the provisions and purposes of the
		foregoing Intercreditor Agreement.
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  ATLANTIC EXPRESS TRANSPORTATION
				  CORP.
				

			 
	
				
				   
				

			 	
				
				  180 JAMAICA CORP.
				

			 
	
				
				   
				

			 	
				
				  AMBOY BUS CO., INC.
				

			 
	
				
				   
				

			 	
				
				  ATLANTIC ESCORTS INC.
				

			 
	
				
				   
				

			 	
				
				  ATLANTIC EXPRESS COACHWAYS,
				  INC.
				

			 
	
				
				   
				

			 	
				
				  ATLANTIC EXPRESS NEW ENGLAND,
				  INC.
				

			 
	
				
				   
				

			 	
				
				  ATLANTIC EXPRESS OF CALIFORNIA,
				  INC.
				

			 
	
				
				   
				

			 	
				
				  ATLANTIC EXPRESS OF ILLINOIS,
				  INC.
				

			 
	
				
				   
				

			 	
				
				  ATLANTIC EXPRESS OF L.A. INC.

				

			 
	
				
				   
				

			 	
				
				  ATLANTIC EXPRESS OF MISSOURI
				  INC.
				

			 
	
				
				   
				

			 	
				
				  ATLANTIC EXPRESS OF NEW JERSEY,
				  INC.
				

			 
	
				
				   
				

			 	
				
				  ATLANTIC EXPRESS OF PENNSYLVANIA,
				  INC.
				

			 
	
				
				   
				

			 	
				
				  ATLANTIC PARATRANS OF NYC,
				  INC.
				

			 
	
				
				   
				

			 	
				
				  ATLANTIC PARATRANS, INC.
				

			 
	
				
				   
				

			 	
				
				  ATLANTIC QUEENS BUS CORP.
				

			 
	
				
				   
				

			 	
				
				  ATLANTIC TRANSIT, CORP.
				

			 
	
				
				   
				

			 	
				
				  ATLANTIC-HUDSON, INC.
				

			 
	
				
				   
				

			 	
				
				  BLOCK 7932, INC.
				

			 
	
				
				   
				

			 	
				
				  BROOKFIELD TRANSIT INC.
				

			 
	
				
				   
				

			 	
				
				  COURTESY BUS CO., INC.
				

			 
	
				
				   
				

			 	
				
				  FIORE BUS SERVICE, INC.
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				

			 	
				
				  By:
				

			 	
				
				  /s/ Nathan Schlenker
				

			 
	
				
				   
				

			 	
				
				  Name: 
				

			 
	
				
				   
				

			 	
				
				  Title: 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		Intercreditor Agreement
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  GROOM TRANSPORTATION, INC.
				

			 
	
				
				   
				

			 	
				
				  GVD LEASING CO., INC.
				

			 
	
				
				   
				

			 	
				
				  JAMES MCCARTY LIMO SERVICE,
				  INC.
				

			 
	
				
				   
				

			 	
				
				  JERSEY BUSINESS LAND CO.,
				  INC.
				

			 
	
				
				   
				

			 	
				
				  K. CORR, INC.
				

			 
	
				
				   
				

			 	
				
				  MERIT TRANSPORTATION CORP.
				

			 
	
				
				   
				

			 	
				
				  METRO AFFILIATES, INC.
				

			 
	
				
				   
				

			 	
				
				  METROPOLITAN ESCORT SERVICE,
				  INC.
				

			 
	
				
				   
				

			 	
				
				  MIDWAY LEASING INC.
				

			 
	
				
				   
				

			 	
				
				  R. FIORE BUS SERVICE, INC.
				

			 
	
				
				   
				

			 	
				
				  RAYBERN BUS SERVICE, INC.
				

			 
	
				
				   
				

			 	
				
				  RAYBERN CAPITAL CORP.
				

			 
	
				
				   
				

			 	
				
				  RAYBERN EQUITY CORP.
				

			 
	
				
				   
				

			 	
				
				  ROBERT L. MCCARTHY & SON,
				  INC.
				

			 
	
				
				   
				

			 	
				
				  STATEN ISLAND BUS, INC.
				

			 
	
				
				   
				

			 	
				
				  TEMPORARY TRANSIT SERVICE,
				  INC.
				

			 
	
				
				   
				

			 	
				
				  ATLANTIC EXPRESS OF UPSTATE NEW
				  YORK, INC.
				

			 
	
				
				   
				

			 	
				
				  TRANSCOMM, INC.
				

			 
	
				
				   
				

			 	
				
				  WINSALE, INC.
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				

			 	
				
				  By:
				

			 	
				
				  /s/ Nathan Schlenker
				

			 
	
				
				   
				

			 	
				
				  Name: 
				

			 
	
				
				   
				

			 	
				
				  Title:
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		Intercreditor Agreement
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 1
	 

	 
		Debtors
	 

	 
		ATLANTIC EXPRESS TRANSPORTATION CORP.

	 

	 
		180 JAMAICA CORP.
	 

	 
		AMBOY BUS CO., INC.
	 

	 
		ATLANTIC ESCORTS INC.
	 

	 
		ATLANTIC EXPRESS COACHWAYS, INC.
	 

	 
		ATLANTIC EXPRESS NEW ENGLAND, INC.
	 

	 
		ATLANTIC EXPRESS OF CALIFORNIA, INC.
	 

	 
		ATLANTIC EXPRESS OF ILLINOIS, INC.
	 

	 
		ATLANTIC EXPRESS OF L.A. INC.
	 

	 
		ATLANTIC EXPRESS OF MISSOURI INC.
	 

	 
		ATLANTIC EXPRESS OF NEW JERSEY, INC.
	 

	 
		ATLANTIC EXPRESS OF PENNSYLVANIA,
		INC.
	 

	 
		ATLANTIC PARATRANS OF NYC, INC.
	 

	 
		ATLANTIC PARATRANS, INC.
	 

	 
		ATLANTIC QUEENS BUS CORP.
	 

	 
		ATLANTIC TRANSIT, CORP.
	 

	 
		ATLANTIC-HUDSON, INC.
	 

	 
		BLOCK 7932, INC.
	 

	 
		BROOKFIELD TRANSIT INC.
	 

	 
		COURTESY BUS CO., INC.
	 

	 
		FIORE BUS SERVICE, INC.
	 

	 
		GROOM TRANSPORTATION, INC.
	 

	 
		GVD LEASING CO., INC.
	 

	 
		JAMES MCCARTY LIMO SERVICE, INC.
	 

	 
		JERSEY BUSINESS LAND CO., INC.
	 

	 
		K. CORR, INC.
	 

	 
		MERIT TRANSPORTATION CORP.
	 

	 
		METRO AFFILIATES, INC.
	 

	 
		METROPOLITAN ESCORT SERVICE, INC.
	 

	 
		MIDWAY LEASING INC.
	 

	 
		R. FIORE BUS SERVICE, INC.
	 

	 
		RAYBERN BUS SERVICE, INC.
	 

	 
		RAYBERN CAPITAL CORP.
	 

	 
		RAYBERN EQUITY CORP.
	 

	 
		ROBERT L. MCCARTHY & SON, INC.
	 

	 
		STATEN ISLAND BUS, INC.
	 

	 
		TEMPORARY TRANSIT SERVICE, INC.
	 

	 
		ATLANTIC EXPRESS OF UPSTATE NEW YORK,
		INC.
	 

	 
		TRANSCOMM, INC.
	 

	 
		WINSALE, INC.
	 

	 
		 
	 

	 
		Intercreditor AgreementExecution
	 

	 
		THIRD AMENDED AND RESTATED LOAN AND SECURITY
		AGREEMENT
	 

	 
		by and among
	 

	 
		ATLANTIC EXPRESS TRANSPORTATION CORP.

	 

	 
		and the other parties named on the signature
		pages hereto
	 

	 
		as Borrowers
	 

	 
		WACHOVIA BANK, NATIONAL ASSOCIATION 
	 

	 
		as Agent
	 

	 
		and
	 

	 
		THE LENDERS FROM TIME TO TIME PARTY
		HERETO
	 

	 
		as Lenders
	 

	 
		Dated: May 15, 2007
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		TABLE OF CONTENTS
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  Page
				

			 
	
	
				
				  SECTION 1. DEFINITIONS
				

			 	
				
				  2
				

			 
	
				
				  SECTION 2. CREDIT FACILITIES
				

			 	
				
				  25
				

			 
	
	
				
				  2.1
				

			 	
				
				   
				

			 	
				
				  Revolving Loans
				

			 	
				
				  25
				

			 
	
				
				  2.2
				

			 	
				
				   
				

			 	
				
				  Letter of Credit Accommodations and
				  LC Advances
				

			 	
				
				  26
				

			 
	
				
				  2.3
				

			 	
				
				   
				

			 	
				
				  Joint and Several Liability
				

			 	
				
				  30
				

			 
	
				
				  2.4
				

			 	
				
				   
				

			 	
				
				  Commitments
				

			 	
				
				  31
				

			 
	
				
				  SECTION 3. INTEREST AND FEES
				

			 	
				
				  31
				

			 
	
	
				
				  3.1
				

			 	
				
				   
				

			 	
				
				  Interest
				

			 	
				
				  31
				

			 
	
				
				  3.2
				

			 	
				
				   
				

			 	
				
				  Fees
				

			 	
				
				  32
				

			 
	
				
				  3.3
				

			 	
				
				   
				

			 	
				
				  Changes in Laws and Increased Costs
				  of Loans
				

			 	
				
				  32
				

			 
	
				
				  SECTION 4. CONDITIONS
				  PRECEDENT
				

			 	
				
				  34
				

			 
	
	
				
				  4.1
				

			 	
				
				   
				

			 	
				
				  Conditions Precedent to Initial
				  Loans and Letter of Credit Accommodations
				

			 	
				
				  34
				

			 
	
				
				  4.2
				

			 	
				
				   
				

			 	
				
				  Conditions Precedent to All Loans
				  and Letter of Credit Accommodations
				

			 	
				
				  37
				

			 
	
				
				  SECTION 5. GRANT AND PERFECTION OF
				  SECURITY INTEREST
				

			 	
				
				  38
				

			 
	
	
				
				  5.1
				

			 	
				
				   
				

			 	
				
				  Grant of Security Interest
				

			 	
				
				  38
				

			 
	
				
				  5.2
				

			 	
				
				   
				

			 	
				
				  Perfection of Security
				  Interests
				

			 	
				
				  39
				

			 
	
				
				  5.3
				

			 	
				
				   
				

			 	
				
				  Exclusions from Collateral
				

			 	
				
				  43
				

			 
	
				
				  SECTION 6. COLLECTION AND
				  ADMINISTRATION
				

			 	
				
				  43
				

			 
	
	
				
				  6.1
				

			 	
				
				   
				

			 	
				
				  Borrowers’ Loan Accounts

				

			 	
				
				  43
				

			 
	
				
				  6.2
				

			 	
				
				   
				

			 	
				
				  Statements
				

			 	
				
				  44
				

			 
	
				
				  6.3
				

			 	
				
				   
				

			 	
				
				  Collection of Accounts
				

			 	
				
				  44
				

			 
	
				
				  6.4
				

			 	
				
				   
				

			 	
				
				  Payments
				

			 	
				
				  45
				

			 
	
				
				  6.5
				

			 	
				
				   
				

			 	
				
				  Authorization to Make Loans
				

			 	
				
				  46
				

			 
	
				
				  6.6
				

			 	
				
				   
				

			 	
				
				  Use of Proceeds
				

			 	
				
				  46
				

			 
	
				
				  6.7
				

			 	
				
				   
				

			 	
				
				  Appointment of Administrative
				  Borrower as Agent for Requesting Loans and Receipts of Loans and
				  Statements
				

			 	
				
				  47
				

			 
	
				
				  6.8
				

			 	
				
				   
				

			 	
				
				  Pro Rata Treatment
				

			 	
				
				  47
				

			 
	
				
				  6.9
				

			 	
				
				   
				

			 	
				
				  Sharing of Payments, Etc.
				

			 	
				
				  48
				

			 
	
				
				  6.10
				

			 	
				
				   
				

			 	
				
				  Settlement Procedures
				

			 	
				
				  49
				

			 
	
				
				  6.11
				

			 	
				
				   
				

			 	
				
				  Obligations Several; Independent
				  Nature of Lenders’ Rights
				

			 	
				
				  51
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		(i)
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
			
				
				  6.12
				

			 	
				
				   
				

			 	
				
				  Bank Products
				

			 	
				
				  51
				

			 
	
				
				  SECTION 7. COLLATERAL REPORTING AND
				  COVENANTS
				

			 	
				
				  51
				

			 
	
	
				
				  7.1
				

			 	
				
				   
				

			 	
				
				  Collateral Reporting
				

			 	
				
				  51
				

			 
	
				
				  7.2
				

			 	
				
				   
				

			 	
				
				  Accounts Covenants
				

			 	
				
				  52
				

			 
	
				
				  7.3
				

			 	
				
				   
				

			 	
				
				  Intentionally Deleted
				

			 	
				
				  53
				

			 
	
				
				  7.4
				

			 	
				
				   
				

			 	
				
				  Equipment and Real Property
				  Covenants
				

			 	
				
				  53
				

			 
	
				
				  7.5
				

			 	
				
				   
				

			 	
				
				  Power of Attorney
				

			 	
				
				  53
				

			 
	
				
				  7.6
				

			 	
				
				   
				

			 	
				
				  Right to Cure
				

			 	
				
				  54
				

			 
	
				
				  7.7
				

			 	
				
				   
				

			 	
				
				  Access to Premises
				

			 	
				
				  55
				

			 
	
				
				  SECTION 8. REPRESENTATIONS AND
				  WARRANTIES
				

			 	
				
				  55
				

			 
	
	
				
				  8.1
				

			 	
				
				   
				

			 	
				
				  Corporate Existence, Power and
				  Authority
				

			 	
				
				  55
				

			 
	
				
				  8.2
				

			 	
				
				   
				

			 	
				
				  Name; State of Organization; Chief
				  Executive Office; Collateral Locations
				

			 	
				
				  56
				

			 
	
				
				  8.3
				

			 	
				
				   
				

			 	
				
				  Financial Statements; No Material
				  Adverse Change
				

			 	
				
				  56
				

			 
	
				
				  8.4
				

			 	
				
				   
				

			 	
				
				  Priority of Liens; Title to
				  Properties
				

			 	
				
				  56
				

			 
	
				
				  8.5
				

			 	
				
				   
				

			 	
				
				  Tax Returns
				

			 	
				
				  57
				

			 
	
				
				  8.6
				

			 	
				
				   
				

			 	
				
				  Litigation
				

			 	
				
				  57
				

			 
	
				
				  8.7
				

			 	
				
				   
				

			 	
				
				  Compliance with Other Agreements and
				  Applicable Laws
				

			 	
				
				  57
				

			 
	
				
				  8.8
				

			 	
				
				   
				

			 	
				
				  Environmental Compliance
				

			 	
				
				  57
				

			 
	
				
				  8.9
				

			 	
				
				   
				

			 	
				
				  Employee Benefits
				

			 	
				
				  58
				

			 
	
				
				  8.10
				

			 	
				
				   
				

			 	
				
				  Bank Accounts
				

			 	
				
				  59
				

			 
	
				
				  8.11
				

			 	
				
				   
				

			 	
				
				  Intellectual Property
				

			 	
				
				  59
				

			 
	
				
				  8.12
				

			 	
				
				   
				

			 	
				
				  Subsidiaries; Affiliates;
				  Capitalization; Solvency
				

			 	
				
				  60
				

			 
	
				
				  8.13
				

			 	
				
				   
				

			 	
				
				  Labor Disputes
				

			 	
				
				  61
				

			 
	
				
				  8.14
				

			 	
				
				   
				

			 	
				
				  Restrictions on Subsidiaries
				

			 	
				
				  61
				

			 
	
				
				  8.15
				

			 	
				
				   
				

			 	
				
				  Material Contracts
				

			 	
				
				  61
				

			 
	
				
				  8.16
				

			 	
				
				   
				

			 	
				
				  Payable Practices
				

			 	
				
				  61
				

			 
	
				
				  8.17
				

			 	
				
				   
				

			 	
				
				  Interrelated Businesses
				

			 	
				
				  61
				

			 
	
				
				  8.18
				

			 	
				
				   
				

			 	
				
				  Accuracy and Completeness of
				  Information
				

			 	
				
				  62
				

			 
	
				
				  8.19
				

			 	
				
				   
				

			 	
				
				  Survival of Warranties;
				  Cumulative
				

			 	
				
				  62
				

			 
	
				
				  SECTION 9. AFFIRMATIVE AND NEGATIVE
				  COVENANTS
				

			 	
				
				  62
				

			 
	
	
				
				  9.1
				

			 	
				
				   
				

			 	
				
				  Maintenance of Existence
				

			 	
				
				  62
				

			 
	
				
				  9.2
				

			 	
				
				   
				

			 	
				
				  New Collateral Locations
				

			 	
				
				  63
				

			 
	
				
				  9.3
				

			 	
				
				   
				

			 	
				
				  Compliance with Laws, Regulations,
				  Etc.
				

			 	
				
				  63
				

			 
	
				
				  9.4
				

			 	
				
				   
				

			 	
				
				  Payment of Taxes and Claims
				

			 	
				
				  64
				

			 
	
				
				  9.5
				

			 	
				
				   
				

			 	
				
				  Insurance
				

			 	
				
				  64
				

			 
	
				
				  9.6
				

			 	
				
				   
				

			 	
				
				  Financial Statements and Other
				  Information
				

			 	
				
				  65
				

			 
	
				
				  9.7
				

			 	
				
				   
				

			 	
				
				  Sale of Assets, Consolidation,
				  Merger, Dissolution, Etc.
				

			 	
				
				  66
				

			 
	
				
				  9.8
				

			 	
				
				   
				

			 	
				
				  Encumbrances
				

			 	
				
				  68
				

			 
	
				
				  9.9
				

			 	
				
				   
				

			 	
				
				  Indebtedness
				

			 	
				
				  70
				

			 
	
				
				  9.10
				

			 	
				
				   
				

			 	
				
				  Loans, Investments, Etc.
				

			 	
				
				  74
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		(ii)
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
			
				
				  9.11
				

			 	
				
				   
				

			 	
				
				  Dividends and Redemptions
				

			 	
				
				  77
				

			 
	
				
				  9.12
				

			 	
				
				   
				

			 	
				
				  Transactions with Affiliates
				

			 	
				
				  78
				

			 
	
				
				  9.13
				

			 	
				
				   
				

			 	
				
				  Compliance with ERISA
				

			 	
				
				  78
				

			 
	
				
				  9.14
				

			 	
				
				   
				

			 	
				
				  End of Fiscal Years; Fiscal
				  Quarters
				

			 	
				
				  79
				

			 
	
				
				  9.15
				

			 	
				
				   
				

			 	
				
				  Change in Business
				

			 	
				
				  79
				

			 
	
				
				  9.16
				

			 	
				
				   
				

			 	
				
				  Limitation of Restrictions Affecting
				  Subsidiaries
				

			 	
				
				  79
				

			 
	
				
				  9.17
				

			 	
				
				   
				

			 	
				
				  Minimum EBITDA
				

			 	
				
				  80
				

			 
	
				
				  9.18
				

			 	
				
				   
				

			 	
				
				  License Agreements
				

			 	
				
				  80
				

			 
	
				
				  9.19
				

			 	
				
				   
				

			 	
				
				  After Acquired Real Property
				

			 	
				
				  81
				

			 
	
				
				  9.20
				

			 	
				
				   
				

			 	
				
				  Senior Management
				

			 	
				
				  81
				

			 
	
				
				  9.21
				

			 	
				
				   
				

			 	
				
				  Inactive Subsidiaries
				

			 	
				
				  81
				

			 
	
				
				  9.22
				

			 	
				
				   
				

			 	
				
				  Costs and Expenses
				

			 	
				
				  82
				

			 
	
				
				  9.23
				

			 	
				
				   
				

			 	
				
				  Further Assurances
				

			 	
				
				  82
				

			 
	
				
				  SECTION 10. EVENTS OF DEFAULT AND
				  REMEDIES
				

			 	
				
				  82
				

			 
	
	
				
				  10.1
				

			 	
				
				   
				

			 	
				
				  Events of Default
				

			 	
				
				  83
				

			 
	
				
				  10.2
				

			 	
				
				   
				

			 	
				
				  Remedies
				

			 	
				
				  84
				

			 
	
				
				  SECTION 11. JURY TRIAL WAIVER; OTHER
				  WAIVERS AND CONSENTS; GOVERNING LAW
				

			 	
				
				  88
				

			 
	
	
				
				  11.1
				

			 	
				
				   
				

			 	
				
				  Governing Law; Choice of Forum;
				  Service of Process; Jury Trial Waiver
				

			 	
				
				  88
				

			 
	
				
				  11.2
				

			 	
				
				   
				

			 	
				
				  Waiver of Notices
				

			 	
				
				  89
				

			 
	
				
				  11.3
				

			 	
				
				   
				

			 	
				
				  Amendments and Waivers
				

			 	
				
				  89
				

			 
	
				
				  11.4
				

			 	
				
				   
				

			 	
				
				  Waiver of Counterclaims
				

			 	
				
				  91
				

			 
	
				
				  11.5
				

			 	
				
				   
				

			 	
				
				  Indemnification
				

			 	
				
				  91
				

			 
	
				
				  SECTION 12. THE AGENT.
				

			 	
				
				  92
				

			 
	
	
				
				  12.1
				

			 	
				
				   
				

			 	
				
				  Appointment, Powers and
				  Immunities
				

			 	
				
				  92
				

			 
	
				
				  12.2
				

			 	
				
				   
				

			 	
				
				  Reliance by Agent
				

			 	
				
				  93
				

			 
	
				
				  12.3
				

			 	
				
				   
				

			 	
				
				  Events of Default.
				

			 	
				
				  93
				

			 
	
				
				  12.4
				

			 	
				
				   
				

			 	
				
				  Wachovia in its Individual
				  Capacity
				

			 	
				
				  93
				

			 
	
				
				  12.5
				

			 	
				
				   
				

			 	
				
				  Indemnification
				

			 	
				
				  94
				

			 
	
				
				  12.6
				

			 	
				
				   
				

			 	
				
				  Non-Reliance on Agent and Other
				  Lenders
				

			 	
				
				  94
				

			 
	
				
				  12.7
				

			 	
				
				   
				

			 	
				
				  Failure to Act
				

			 	
				
				  94
				

			 
	
				
				  12.8
				

			 	
				
				   
				

			 	
				
				  Additional Loans
				

			 	
				
				  95
				

			 
	
				
				  12.9
				

			 	
				
				   
				

			 	
				
				  Concerning the Collateral and the
				  Related Financing Agreements
				

			 	
				
				  95
				

			 
	
				
				  12.10
				

			 	
				
				   
				

			 	
				
				  Field Audit, Examination Reports and
				  other Information; Disclaimer by Lenders
				

			 	
				
				  95
				

			 
	
				
				  12.11
				

			 	
				
				   
				

			 	
				
				  Collateral Matters
				

			 	
				
				  96
				

			 
	
				
				  12.12
				

			 	
				
				   
				

			 	
				
				  Agency for Perfection
				

			 	
				
				  97
				

			 
	
				
				  12.13
				

			 	
				
				   
				

			 	
				
				  Successor Agent
				

			 	
				
				  98
				

			 
	
				
				  SECTION 13. TERM OF AGREEMENT;
				  MISCELLANEOUS.
				

			 	
				
				  98
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		(iii)
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
			
				
				  13.1
				

			 	
				
				   
				

			 	
				
				  Term
				

			 	
				
				  98
				

			 
	
				
				  13.2
				

			 	
				
				   
				

			 	
				
				  Interpretative Provisions
				

			 	
				
				  100
				

			 
	
				
				  13.3
				

			 	
				
				   
				

			 	
				
				  Notices
				

			 	
				
				  101
				

			 
	
				
				  13.4
				

			 	
				
				   
				

			 	
				
				  Partial Invalidity
				

			 	
				
				  102
				

			 
	
				
				  13.5
				

			 	
				
				   
				

			 	
				
				  Confidentiality
				

			 	
				
				  102
				

			 
	
				
				  13.6
				

			 	
				
				   
				

			 	
				
				  Successors
				

			 	
				
				  103
				

			 
	
				
				  13.7
				

			 	
				
				   
				

			 	
				
				  Assignments; Participations
				

			 	
				
				  104
				

			 
	
				
				  13.8
				

			 	
				
				   
				

			 	
				
				  Entire Agreement
				

			 	
				
				  106
				

			 
	
				
				  13.9
				

			 	
				
				   
				

			 	
				
				  Counterparts, Etc.
				

			 	
				
				  106
				

			 
	
				
				  SECTION 14. ACKNOWLEDGMENT AND
				  RESTATEMENT
				

			 	
				
				  106
				

			 
	
	
				
				  14.1
				

			 	
				
				   
				

			 	
				
				  Existing Obligations
				

			 	
				
				  106
				

			 
	
				
				  14.2
				

			 	
				
				   
				

			 	
				
				  Acknowledgment of Security
				  Interests
				

			 	
				
				  107
				

			 
	
				
				  14.3
				

			 	
				
				   
				

			 	
				
				  Existing Financing Agreements

				

			 	
				
				  107
				

			 
	
				
				  14.4
				

			 	
				
				   
				

			 	
				
				  Restatement
				

			 	
				
				  107
				

			 
	
				
				  14.5
				

			 	
				
				   
				

			 	
				
				  Release
				

			 	
				
				  108
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
		(iv)
	 

	 
		 
	 

	 
	 

	 

	 
		INDEX TO
	 

	 
		EXHIBITS AND SCHEDULES
	 

	 
		 
	 

	 
			
				
				  Exhibit A
				

			 	
				
				   
				

			 	
				
				  Form of Assignment and
				  Acceptance
				

			 
	
				
				  Exhibit B
				

			 	
				
				   
				

			 	
				
				  Information Certificate
				

			 
	
				
				  Exhibit C
				

			 	
				
				   
				

			 	
				
				  Form of Compliance
				  Certificate
				

			 
	
				
				  Schedule 1.43
				

			 	
				
				   
				

			 	
				
				  Existing Letters of Credit
				

			 
	
				
				  Schedule 8.9
				

			 	
				
				   
				

			 	
				
				  Multiemployer Plans
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		-i-
	 

	 
		 
	 

	 
	 

	 

	 
		THIRD AMENDED AND RESTATED LOAN AND
		SECURITY AGREEMENT
	 

	 
		This Third Amended and Restated Loan and
		Security Agreement, dated May 15, 2007, is entered into by and among Atlantic
		Express Transportation Corp., a New York corporation (“Parent”),
		Amboy Bus Co., Inc., a New York corporation (“Amboy”), Atlantic
		Escorts Inc., a New York corporation (“Atlantic Escorts”), Atlantic
		Express Coachways, Inc., a New Jersey corporation (“Coachways”),
		Atlantic Express New England, Inc., a Massachusetts corporation
		(“AE-NE”), Atlantic Express of California, Inc., a California
		corporation (“AE-CA”), Atlantic Express of Illinois, Inc., an
		Illinois corporation (“AE-I”), Atlantic Express of L.A., Inc., a
		California corporation (“AELA”), Atlantic Express of Missouri Inc., a
		Missouri corporation (“AE Missouri”), Atlantic Express of New Jersey,
		Inc., a New Jersey corporation (“AENJ”), Atlantic Express of
		Pennsylvania, Inc., a Delaware corporation (“AEP”), Atlantic Express
		of Upstate New York, Inc., formerly known as T NT Bus Service, Inc., a New York
		corporation (“AE Upstate”), Atlantic Transit Corp., a New York
		corporation (“ATC”), Atlantic-Hudson, Inc., a New York corporation
		(“AH”), Atlantic Paratrans, Inc., a New York corporation
		(“AP”), Atlantic Paratrans of NYC, Inc., a New York corporation
		(“APNY”), Atlantic Queens Bus Corp., a New York corporation
		(“AQ”), Block 7932, Inc., a New York corporation (“Block”),
		Brookfield Transit Inc., a New York corporation (“Brookfield”),
		Courtesy Bus Co., Inc., a New York corporation (“Courtesy”), Fiore
		Bus Service, Inc., a Massachusetts corporation (“Fiore”), Groom
		Transportation, Inc., a Massachusetts corporation (“Groom”), G.V.D.
		Leasing Co., Inc., a New York corporation (“GVD”), James McCarthy
		Limo Service, Inc., a Massachusetts corporation (“Limo”), Jersey
		Business Land Co., Inc., a New Jersey corporation (“JBL”), K. Corr,
		Inc., a New York corporation (“Corr”), Merit Transportation Corp., a
		New York corporation (“Merit”), Metro Affiliates, Inc., a New York
		corporation (“Metro”), Metropolitan Escort Service, Inc., a New York
		corporation (“Metropolitan Escort”), Midway Leasing Inc., a New York
		corporation (“Midway”), 180 Jamaica Corp., a New York corporation
		(“Jamaica”), R. Fiore Bus Service, Inc., a Massachusetts corporation
		(“FBS”), Raybern Bus Service, Inc., a New York corporation
		(“RBS”), Raybern Capital Corp., a New York corporation
		(“RBC”), Raybern Equity Corp., a New York corporation
		(“REC”), Robert L. McCarthy & Son, Inc., a Massachusetts
		corporation (“McCarthy”), Staten Island Bus, Inc., a New York
		corporation (“SI-Bus”), Temporary Transit Service, Inc., a New York
		corporation (“TTS”), Transcomm, Inc., a Massachusetts corporation
		(“Transcomm”), Winsale, Inc., a New Jersey corporation
		(“Winsale” and together with Parent, Amboy, Atlantic Escorts,
		Coachways, AE-NE, AE-CA, AE-I, AELA, AE Missouri, AENJ, AEP, AE Upstate, ATC,
		AH, AP, APNY, AQ, Block, Brookfield, Courtesy, Fiore, Groom, GVD, Limo, JBL,
		Corr, Merit, Metro, Metropolitan Escort, Midway, Jamaica, FBS, RBS, RBC, REC,
		McCarthy, SI-Bus, TTS and Transcomm, each individually a “Borrower”
		and collectively, “Borrowers”), the parties hereto from time to time
		as guarantors (each individually a “Guarantor” and collectively,
		“Guarantors” as hereinafter further defined), the parties hereto from
		time to time as lenders, whether by execution of this Agreement or an
		Assignment and Acceptance (each individually, a “Lender” and
		collectively, “Lenders”), and Wachovia Bank, National Association, in
		its capacity as agent for Lenders (in such capacity, “Agent”).

	 

	 
		W I T N E S S E T H:
	 

	 
		WHEREAS, Agent, Lenders, Borrowers and
		certain of their affiliates have entered into financing arrangements pursuant
		to which Lenders have made loans and advances and provided 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		other financial accommodations to Borrowers
		as set forth in the Second Amended and Restated Loan and Security Agreement,
		dated April 22, 2004, by and among Agent, Lenders, Borrowers and certain of
		their affiliates, as amended by Amendment No. 1 to Second Amended and Restated
		Loan and Security Agreement, dated as of June 14, 2004, Amendment No. 2 to
		Second Amended and Restated Loan and Security Agreement, dated as of September
		15, 2004, Amendment No. 3 to Second Amended and Restated Loan and Security
		Agreement, dated as of October 14, 2004, Amendment No. 4 to Second Amended and
		Restated Loan and Security Agreement, dated as of January 5, 2005, Amendment
		No. 5 to Second Amended and Restated Loan and Security Agreement, dated as of
		March 3, 2005, Amendment No. 6 to Second Amended and Restated Loan and Security
		Agreement, dated as of April 13,
		2005, Amendment No. 7 to Second Amended
		and Restated Loan and Security Agreement, dated as of April 29, 2005,
		Amendment No. 8 to Second Amended and Restated Loan and Security Agreement,
		dated as of June 30, 2005, Amendment No. 9 to Second Amended and Restated Loan
		and Security Agreement, dated as of August 15, 2005, Amendment No. 10 to Second
		Amended and Restated Loan and Security Agreement, dated as of August 25, 2005,
		Amendment No. 11 to Second Amended and Restated Loan and Security
		Agreement, dated as of November 3, 2005, Amendment No. 12 to Second
		Amended and Restated Loan and Security Agreement, dated as of August 31, 2006,
		and Amendment No. 13 to Second Amended and Restated Loan and Security
		Agreement, dated as of October 12, 2006 (the “Existing Loan
		Agreement”, and together with all agreements, documents and instruments at
		any time executed and/or delivered in connection therewith or related thereto,
		as from time to time amended, modified, supplemented, extended, renewed,
		restated or replaced, collectively, the “Existing Financing
		Agreements”);
	 

	 
		WHEREAS, Borrowers have requested that Agent
		and Lenders amend and restate the Existing Loan Agreement and continue the
		existing financing arrangements with Borrowers pursuant to which Lenders may
		make loans and provide other financial accommodations to Borrowers; and
	 

	 
		WHEREAS, Agent, and Lenders have agreed to
		amend and restate the Existing Loan Agreement and each Lender (severally and
		not jointly) has agreed to continue to make such loans and provide such other
		financial accommodations to Borrowers on a pro
		rata basis according to its Commitment (as defined below) on
		the terms and conditions set forth herein and Agent has agreed to continue to
		act as agent for Lenders on the terms and conditions set forth herein and the
		other Financing Agreements;
	 

	 
		NOW, THEREFORE, in consideration of the
		mutual conditions and agreements set forth herein, and for other good and
		valuable consideration, the receipt and sufficiency of which is hereby
		acknowledged, the parties hereto agree as follows:
	 

	 
		SECTION 1. DEFINITIONS
	 

	 
		For purposes of this Agreement, the
		following terms shall have the respective meanings given to them below:
	 

	 
		1.1 “Accounts” shall mean, as to
		each Borrower and Guarantor, all present and future rights of such Borrower and
		Guarantor to payment of a monetary obligation, whether or not earned by
		performance, which is not evidenced by chattel paper or an instrument, (a) for
		
	 

	 
		 
	 

	 
		 
	 

	 
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		property that has been or is to be sold,
		leased, licensed, assigned, or otherwise disposed of, (b) for services rendered
		or to be rendered, (c) for a secondary obligation incurred or to be incurred,
		or (d) arising out of the use of a credit or charge card or information
		contained on or for use with the card.
	 

	 
		1.2 “Adjusted Eurodollar Rate”
		shall mean, with respect to each Interest Period for any Eurodollar Rate Loan,
		the rate per annum (rounded upwards, if necessary, to the next one-sixteenth
		(1/16) of one (1%) percent) determined by dividing (a) the Eurodollar Rate for
		such Interest Period by (b) a percentage equal to: (i) one (1) minus (ii) the
		Reserve Percentage. For purposes hereof, “Reserve Percentage” shall
		mean the reserve percentage, expressed as a decimal, prescribed by any United
		States or foreign banking authority for determining the reserve requirement
		which is or would be applicable to deposits of United States dollars in a
		non-United States or an international banking office of Reference Bank used to
		fund a Eurodollar Rate Loan or any Eurodollar Rate Loan made with the proceeds
		of such deposit, whether or not the Reference Bank actually holds or has made
		any such deposits or loans. The Adjusted Eurodollar Rate shall be adjusted on
		and as of the effective day of any change in the Reserve Percentage.
	 

	 
		1.3 “AETG” shall mean Atlantic
		Express Transportation Group, Inc., a New York corporation.
	 

	 
		1.4 “Administrative Borrower”
		shall mean Parent, in its capacity as Administrative Borrower on behalf of
		itself and the other Borrowers pursuant to Section 6.7 hereof and it successors
		and assigns in such capacity.
	 

	 
		1.5 “Affiliate” shall mean, with
		respect to a specified Person, any other Person which directly or indirectly,
		through one or more intermediaries, controls or is controlled by or is under
		common control with such Person, and without limiting the generality of the
		foregoing, includes (a) any Person which beneficially owns or holds five (5%)
		percent or more of any class of Voting Stock of such Person or other equity
		interests in such Person, (b) any Person of which such Person beneficially owns
		or holds five (5%) percent or more of any class of Voting Stock or in which
		such Person beneficially owns or holds five (5%) percent or more of the equity
		interests and (c) any director or executive officer of such Person. For the
		purposes of this definition, the term “control” (including with
		correlative meanings, the terms “controlled by” and “under
		common control with”), as used with respect to any Person, means the
		possession, directly or indirectly, of the power to direct or cause the
		direction of the management and policies of such Person, whether through the
		ownership of Voting Stock, by agreement or otherwise. The term
		“Affiliate” shall not be deemed to include any holder of Warrants
		solely as a consequence of its ownership of any Warrants.
	 

	 
		1.6 “Agent” shall mean Wachovia
		Bank, National Association, in its capacity as agent on behalf of Lenders
		pursuant to the terms hereof and any replacement or successor agent
		hereunder.
	 

	 
		1.7 “Agent Payment Account” shall
		mean account no. 5000000030279 of Agent at Wachovia Bank, National Association,
		or such other account of Agent as Agent may from time 
	 

	 
		 
	 

	 
		 
	 

	 
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		to time designate to Administrative Borrower
		as the Agent Payment Account for purposes of this Agreement and the other
		Financing Agreements.
	 

	 
		1.8 “Aggregate Obligation Limit”
		shall mean, at any time the amount equal to the lesser of:
	 

	 
		(a) eighty-five (85%) percent of the
		aggregate Net Amount of Eligible Accounts of all Borrowers minus
		Reserves;
	 

	 
		 or 
	 

	 
		(b) $45,000,000.
	 

	 
		1.9 “Assignment and Acceptance”
		shall mean an Assignment and Acceptance substantially in the form of Exhibit A
		attached hereto (with blanks appropriately completed) delivered to Agent in
		connection with an assignment of a Lender’s interest hereunder in
		accordance with the provisions of Section 13.7 hereof.
	 

	 
		1.10 “Bank Product Provider” shall
		mean Agent, any Lender, any Affiliate of any Lender or other financial
		institution (in each case as to any such Lender, Affiliate or other financial
		institution to the extent approved by Agent) that provides any Bank Products to
		Borrowers or Guarantors.
	 

	 
		1.11 “Bank Products” shall mean
		any one or more of the following types or services or facilities provided to a
		Borrower by a Bank Product Provider: (a) credit cards or stored value cards or
		(b) cash management or related services, including (i) the automated
		clearinghouse transfer of funds for the account of a Borrower pursuant to
		agreement or overdraft for any accounts of Borrowers maintained at Agent or any
		Bank Product Provider that are subject to the control of Agent pursuant to any
		Deposit Account Control Agreement to which Agent or such Bank Product Provider
		is a party, as applicable, and (ii) controlled disbursement services and (c)
		Hedge Agreements if and to the extent permitted hereunder. Any of the foregoing
		shall only be included in the definition of the term “Bank Products”
		to the extent that the Bank Product Provider has been approved by Agent.

	 

	 
		1.12 “Bankruptcy Code” shall mean
		the United States Bankruptcy Code, being Title 11 of the United States Code, as
		the same now exists or may from time to time hereafter be amended, modified,
		recodified or supplemented, together with all official rules, regulations and
		interpretations thereunder or related thereto.
	 

	 
		1.13 “Benefit Plan” means an
		employee benefit plan (as defined in Section 3(3) of ERISA) which any Borrower
		or Guarantor sponsors, maintains, or to which it makes, is making, or is
		obligated to make contributions, or in the case of a Multiemployer Plan has
		made contributions at any time during the immediately preceding six (6) plan
		years.
	 

	 
		1.14 “Blocked Accounts” shall have
		the meaning set forth in Section 6.3 hereof.
	 

	 
		 
	 

	 
		 
	 

	 
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		1.15 “Borrowing Base” shall mean,
		at any time the amount equal to the lesser of: 
	 

	 
		(a) eighty-five (85%) percent of the
		aggregate Net Amount of Eligible Accounts of all Borrowers minus
		Reserves;
	 

	 
		 or 
	 

	 
		(b) $35,000,000.
	 

	 
		1.16 “Business Day” shall mean any
		day other than a Saturday, Sunday, or other day on which commercial banks are
		authorized or required to close under the laws of the State of New York, or the
		State of North Carolina, and a day on which Agent is open for the transaction
		of business, except that if a determination of a Business Day shall relate to
		any Eurodollar Rate Loans, the term Business Day shall also exclude any day on
		which banks are closed for dealings in dollar deposits in the London interbank
		market or other applicable Eurodollar Rate market.
	 

	 
		1.17 “Capital Leases” shall mean,
		as applied to any Person, any lease of (or any agreement conveying the right to
		use) any property (whether real, personal or mixed) by such Person as lessee
		which in accordance with GAAP, is required to be reflected as a liability on
		the balance sheet of such Person.
	 

	 
		1.18 “Capital Stock” shall mean,
		with respect to any Person, any and all shares, interests, participations or
		other equivalents (however designated) of such Person’s capital stock or
		partnership, limited liability company or other equity interests at any time
		outstanding, and any and all rights, warrants or options exchangeable for or
		convertible into such capital stock or other interests (but excluding any debt
		security that is exchangeable for or convertible into such capital
		stock).
	 

	 
		1.19 “Cash Equivalents” shall
		mean, at any time, (a) any evidence of Indebtedness with a maturity date of
		ninety (90) days or less issued or directly and fully guaranteed or insured by
		the United States of America or any agency or instrumentality thereof;
		provided, that, the full faith and credit of the United States of America is
		pledged in support thereof; (b) certificates of deposit or bankers’
		acceptances with a maturity of ninety (90) days or less of any financial
		institution that is a member of the Federal Reserve System having combined
		capital and surplus and undivided profits of not less than $250,000,000; (c)
		commercial paper (including variable rate demand notes) with a maturity of
		ninety (90) days or less issued by a corporation (except an Affiliate of any
		Borrower or Guarantor) organized under the laws of any State of the United
		States of America or the District of Columbia and rated at least A-1 by
		Standard & Poor’s Ratings Service, a division of The McGraw-Hill
		Companies, Inc. or at least P-1 by Moody’s Investors Service, Inc.; (d)
		repurchase obligations with a term of not more than thirty (30) days for
		underlying securities of the types described in clause (a) above entered into
		with any financial institution having combined capital and surplus and
		undivided profits of not less than $250,000,000; (e) repurchase agreements and
		reverse repurchase agreements relating to marketable direct obligations issued
		or unconditionally guaranteed by the United States of America or issued by any
		governmental agency thereof and backed by the full faith and credit of the
		United States of America, in each case maturing within ninety (90) days or less
		from the date of acquisition; provided, that, the terms of such agreements
		comply with the guidelines set forth 
	 

	 
		 
	 

	 
		 
	 

	 
		5
	 

	 
		 
	 

	 
	 

	 

	 
		in the Federal Financial Agreements of
		Depository Institutions with Securities Dealers and Others, as adopted by the
		Comptroller of the Currency on October 31, 1985; and (f) investments in money
		market funds and mutual funds which invest substantially all of their assets in
		securities of the types described in clauses (a) through (e) above.
	 

	 
		1.20 “Change of Control” shall
		mean (a) the transfer (in one transaction or a series of transactions) of all
		or substantially all of the assets of any Borrower or Guarantor to any Person
		or group (as such term is used in Section 13(d)(3) of the Exchange Act), other
		than as permitted in Section 9.7 hereof; (b) the liquidation or dissolution of
		any Borrower or Guarantor or the adoption of a plan by the stockholders of any
		Borrower or Guarantor relating to the dissolution or liquidation of such
		Borrower or Guarantor, other than as permitted in Section 9.7 hereof; (c) the
		acquisition by any Person or group (as such term is used in Section 13(d)(3) of
		the Exchange Act), except for one or more Permitted Holders, of beneficial
		ownership, directly or indirectly, of more than fifty (50%) percent of the
		aggregate voting power of the total outstanding Voting Stock of Parent or AETG
		or the Board of Directors of Parent or AETG; (d) during any period of two (2)
		consecutive years, individuals who at the beginning of such period constituted
		the Board of Directors of any Borrower or Guarantor (together with any new
		directors who have been appointed by any Permitted Holder, or whose nomination
		for election by the stockholders of Parent or AETG, as the case may be, was
		approved by a vote of at least sixty-six and two-thirds (66 2/3%) percent of
		the directors then still in office who were either directors at the beginning
		of such period or whose election or nomination for election was previously so
		approved) cease for any reason to constitute a majority of the Board of
		Directors of AETG or Parent then still in office; (e) the failure of AETG to
		own directly or indirectly at least fifty-one (51%) percent of the voting power
		of the total outstanding Voting Stock of Parent or (f) the failure of Parent to
		own directly or indirectly one hundred (100%) percent of the voting power of
		the total outstanding Voting Stock of any other Borrower or Guarantor.
	 

	 
		1.21 “Code” shall mean the
		Internal Revenue Code of 1986, as the same now exists or may from time to time
		hereafter be amended, modified, recodified or supplemented, together with all
		rules, regulations and interpretations thereunder or related thereto.
	 

	 
		1.22 “Collateral” shall have the
		meaning set forth in Section 5 hereof.
	 

	 
		1.23 “Collateral Access Agreement”
		shall mean an agreement in writing, in form and substance satisfactory to
		Agent, from any lessor of premises to any Borrower or Guarantor, or any other
		person to whom any Collateral is consigned or who has custody, control or
		possession of any such Collateral or is otherwise the owner or operator of any
		premises on which any of such Collateral is located, pursuant to which such
		lessor, consignee or other person, inter alia, acknowledges the first priority
		security interest of Agent in such Collateral, agrees to waive any and all
		claims such lessor, consignee or other person may, at any time, have against
		such Collateral, whether for processing, storage or otherwise, and agrees to
		permit Agent access to, and the right to remain on, the premises of such
		lessor, consignee or other person so as to exercise Agent’s rights and
		remedies and otherwise deal with such Collateral and in the case of any
		consignee or other person who at any time has custody, control or possession of
		any Collateral, acknowledges that it holds and will hold possession of the
		Collateral for the benefit of Agent and Lenders and agrees to follow all
		instructions of Agent with respect thereto.
	 

	 
		 
	 

	 
		 
	 

	 
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		1.24 “Commitment” shall mean, at
		any time, as to each Lender, the principal amount set forth below such
		Lender’s signature on the signatures pages hereto designated as the
		Commitment or on Schedule 1 to the Assignment and Acceptance Agreement pursuant
		to which such Lender became a Lender hereunder in accordance with the
		provisions of Section 13.7 hereof, as the same may be adjusted from time to
		time in accordance with the terms hereof; sometimes being collectively referred
		to herein as “Commitments”.
	 

	 
		1.25 “Credit Facility” shall mean
		the Loans and Letter of Credit Accommodations provided to or for the benefit of
		any Borrower pursuant to Sections 2.1 and 2.2 hereof.
	 

	 
		1.26 “Default” shall mean an act,
		condition or event which with notice or passage of time or both would
		constitute an Event of Default.
	 

	 
		1.27 “Defaulting Lender” shall
		have the meaning set forth in Section 6.10 hereof.
	 

	 
		1.28 “Deposit Account Control
		Agreement” shall mean an agreement in writing, in form and substance
		satisfactory to Agent, by and among Agent, the Borrower or Guarantor with a
		deposit account at any bank and the bank at which such deposit account is at
		any time maintained which provides that such bank will comply with instructions
		originated by Agent directing disposition of the funds in the deposit account
		without further consent by such Borrower or Guarantor and such other terms and
		conditions as Agent may require. 
	 

	 
		1.29 “EBITDA” shall mean, for any
		period, net income or loss of Parent and its Subsidiaries before income or loss
		from discontinued operations for such period, determined on a consolidated
		basis in accordance with GAAP, plus (a) to the extent deducted in computing
		such consolidated net income or loss, without duplication, an amount equal to
		the sum of (i) income tax expense, plus (ii)
		Interest Expense, plus (iii) depreciation and amortization expense,
		plus (iv) non-cash extraordinary or nonrecurring losses or
		non-recurring expenses including non-cash impairment charges, plus (v) the
		amount of cash capital contributions to Parent described in Section 9.17
		hereof, minus (b) to the extent added in computing such consolidated
		net income or loss, without duplication, extraordinary or non-recurring income
		or gains.
	 

	 
		1.30 “EBITDA Capital Contribution
		Deadline” shall mean the earlier of (a) forty-five (45) days after
		the end of any month and (b) the date of the receipt by Agent of the monthly
		financial statements described in Section 9.6(a)(i) hereof for such
		month.
	 

	 
		1.31 “Eligible Accounts” shall
		mean Accounts created by a Borrower which are and continue to be acceptable to
		Agent based on the criteria set forth below. In general, Accounts shall be
		Eligible Accounts if:
	 

	 
		(a) such Accounts arise from the actual and
		bona fide sale and delivery of goods by such Borrower or rendition of services
		by such Borrower in the ordinary course of its business which transactions are
		completed in accordance with the terms and provisions contained in any
		documents related thereto;
	 

	 
		(b) such Accounts are not unpaid more than
		ninety (90) days after the date of the original invoice for them;
	 

	 
		 
	 

	 
		 
	 

	 
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		(c) such Accounts comply with the terms and
		conditions contained in Section 7.2(b) of this Agreement;
	 

	 
		(d) such Accounts do not arise from sales on
		consignment, guaranteed sale, sale and return, sale on approval, or other terms
		under which payment by the account debtor may be conditional or
		contingent;
	 

	 
		(e) the chief executive office of the
		account debtor with respect to such Accounts is located in the United States of
		America or Canada (provided, that, at any time promptly upon Agent’s
		request, such Borrower shall execute and deliver, or cause to be executed and
		delivered, such other agreements, documents and instruments as may be required
		by Agent to perfect the security interests of Agent in those Accounts of an
		account debtor with its chief executive office or principal place of business
		in Canada in accordance with the applicable laws of the Province of Canada in
		which such chief executive office or principal place of business is located and
		take or cause to be taken such other and further actions as Agent may request
		to enable Agent as secured party with respect thereto to collect such Accounts
		under the applicable Federal or Provincial laws of Canada) or, at Agent’s
		option, if the chief executive office and principal place of business of the
		account debtor with respect to such Accounts is located other than in the
		United States of America or Canada, then if either: (i) the account debtor has
		delivered to such Borrower an irrevocable letter of credit issued or confirmed
		by a bank satisfactory to Agent and payable only in the United States of
		America and in U.S. dollars, sufficient to cover such Account, in form and
		substance satisfactory to Agent and if required by Agent, the original of such
		letter of credit has been delivered to Agent or Agent’s agent and the
		issuer thereof, and such Borrower has complied with the terms of Section 5.2(f)
		hereof with respect to the assignment of the proceeds of such letter of credit
		to Agent or naming Agent as transferee beneficiary thereunder, as Agent may
		specify, or (ii) such Account is subject to credit insurance payable to Agent
		issued by an insurer and on terms and in an amount acceptable to Agent, or
		(iii) such Account is otherwise acceptable in all respects to Agent (subject to
		such lending formula with respect thereto as Agent may determine);
	 

	 
		(f) such Accounts do not consist of progress
		billings (such that the obligation of the account debtors with respect to such
		Accounts is conditioned upon such Borrower’s satisfactory completion of
		any further performance under the agreement giving rise thereto), bill and hold
		invoices or retainage invoices, except (i) as to bill and hold invoices, if
		Agent shall have received an agreement in writing from the account debtor, in
		form and substance satisfactory to Agent, confirming the unconditional
		obligation of the account debtor to take the goods related thereto and pay such
		invoice, and (ii) in the sole determination of Agent, retainage invoices in
		respect of which the New York City Department of Education is the account
		debtor and for which Agent has received evidence, satisfactory to Agent, that
		all services to be performed by such Borrower have been completed; 
	 

	 
		(g) the account debtor with respect to such
		Accounts has not asserted a counterclaim, defense or dispute and is not owed
		any amounts that may give rise to any right of setoff or recoupment against
		such Accounts (but the portion of the Accounts of such account debtor in excess
		of the amount at any time and from time to time owed by such Borrower to such
		account debtor or claimed owed by such account debtor may be deemed Eligible
		Accounts),
	 

	 
		 
	 

	 
		 
	 

	 
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		(h) there are no facts, events or
		occurrences which would impair the validity, enforceability or collectability
		of such Accounts or reduce the amount payable or delay payment thereunder;
		
	 

	 
		(i) such Accounts are subject to the first
		priority, valid and perfected security interest of Agent and any goods giving
		rise thereto are not, and were not at the time of the sale thereof, subject to
		any liens except those permitted in this Agreement that are subject to an
		intercreditor agreement in form and substance satisfactory to Agent between the
		holder of such security interest or lien and Agent;
	 

	 
		(j) neither the account debtor nor any
		officer or employee of the account debtor with respect to such Accounts is an
		officer, employee, agent or other Affiliate of any Borrower or
		Guarantor;
	 

	 
		(k) the account debtors with respect to such
		Accounts are not any foreign government, the United States of America, any
		State, political subdivision, department, agency or instrumentality thereof,
		unless, if the account debtor is the United States of America, any State,
		political subdivision, department, agency or instrumentality thereof, upon
		Agent’s request, the Federal Assignment of Claims Act of 1940, as amended
		or any similar State or local law, if applicable, has been complied with in a
		manner satisfactory to Agent; 
	 

	 
		(l) there are no proceedings or actions
		which are threatened or pending against the account debtors with respect to
		such Accounts which might result in any material adverse change in any such
		account debtor’s financial condition (including, without limitation, any
		bankruptcy, dissolution, liquidation, reorganization or similar proceeding);
		
	 

	 
		(m) such Accounts of a single account debtor
		or its Affiliates do not constitute more than twenty-five (25%) percent (or
		fifty (50%) percent in the case of Accounts owed by the New York City
		Department of Education) of all otherwise Eligible Accounts, net of retainages
		included therein (but the portion of the Accounts not in excess of such
		percentage may be deemed Eligible Accounts);
	 

	 
		(n) such Accounts are not owed by an account
		debtor who has Accounts unpaid more than ninety (90) days after the date of the
		original invoice for them which constitute more than fifty (50%) percent of the
		total Accounts of such account debtor;
	 

	 
		(o) the account debtor is not located in a
		state requiring the filing of a Notice of Business Activities Report or similar
		report in order to permit such Borrower to seek judicial enforcement in such
		State of payment of such Account, unless such Borrower has qualified to do
		business in such state or has filed a Notice of Business Activities Report or
		equivalent report for the then current year or such failure to file and
		inability to seek judicial enforcement is capable of being remedied without any
		material delay or material cost;
	 

	 
		(p) such Accounts are owed by account
		debtors whose total indebtedness to such Borrower does not exceed the credit
		limit with respect to such account debtors as determined by such Borrower from
		time to time, to the extent such credit limit as to any account debtor is
		established consistent with the current practices of such Borrower as of the
		date hereof 
	 

	 
		 
	 

	 
		 
	 

	 
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		and such credit limit is acceptable to Agent
		(but the portion of the Accounts not in excess of such credit limit may be
		deemed Eligible Accounts); and 
	 

	 
		(q) such Accounts are owed by account
		debtors deemed creditworthy at all times by Agent.
	 

	 
		The criteria for Eligible Accounts set forth
		above may only be changed and any new criteria for Eligible Accounts may only
		be established by Agent in good faith based on either: (i) an event, condition
		or other circumstance arising after the date hereof, or (ii) an event,
		condition or other circumstance existing on the date hereof to the extent Agent
		has no written notice thereof from a Borrower prior to the date hereof, in
		either case under clause (i) or (ii) which adversely affects or could
		reasonably be expected to adversely affect the Accounts in the good faith
		determination of Agent. Any Accounts which are not Eligible Accounts shall
		nevertheless be part of the Collateral. 
	 

	 
		1.32 “Eligible Transferee” shall
		mean (a) any Lender, (b) the parent company of any Lender and/or any Affiliate
		of such Lender which is at least fifty (50%) percent owned by such Lender or
		its parent company; (c) any person (whether a corporation, partnership, trust
		or otherwise) that is engaged in the business of making, purchasing, holding or
		otherwise investing in bank loans and similar extensions of credit in the
		ordinary course of its business and is administered or managed by a Lender or
		with respect to any Lender that is a fund which invests in bank loans and
		similar extensions of credit, any other fund that invests in bank loans and
		similar extensions of credit and is managed by the same investment advisor as
		such Lender or by an Affiliate of such investment advisor, and in each case is
		approved by Agent; and (d) any other commercial bank, financial institution or
		“accredited investor” (as defined in Regulation D under the
		Securities Act of 1933) approved by Agent, provided, that, (i) neither any
		Borrower nor any Guarantor or any Affiliate of any Borrower or Guarantor shall
		qualify as an Eligible Transferee and (ii) no Person to whom any Indebtedness
		which is in any way subordinated in right of payment to any other Indebtedness
		of any Borrower or Guarantor shall qualify as an Eligible Transferee, except as
		Agent may otherwise specifically agree.
	 

	 
		1.33 “Environmental Laws” shall
		mean all foreign, Federal, State and local laws (including common law),
		legislation, rules, codes, licenses, permits (including any conditions imposed
		therein), authorizations, judicial or administrative decisions, injunctions or
		agreements between any Borrower or Guarantor and any Governmental Authority,
		(a) relating to pollution and the protection, preservation or restoration of
		the environment (including air, water vapor, surface water, ground water,
		drinking water, drinking water supply, surface land, subsurface land, plant and
		animal life or any other natural resource), or to human health or safety, (b)
		relating to the exposure to, or the use, storage, recycling, treatment,
		generation, manufacture, processing, distribution, transportation, handling,
		labeling, production, release or disposal, or threatened release, of Hazardous
		Materials, or (c) relating to all laws with regard to recordkeeping,
		notification, disclosure and reporting requirements respecting Hazardous
		Materials. The term “Environmental Laws” includes (i) the Federal
		Comprehensive Environmental Response, Compensation and Liability Act of 1980,
		the Federal Superfund Amendments and Reauthorization Act, the Federal Water
		Pollution Control Act of 1972, the Federal Clean Water Act, the Federal Clean
		Air Act, the Federal Resource Conservation and Recovery Act of 1976 (including
		the Hazardous and Solid Waste Amendments thereto), the 
	 

	 
		 
	 

	 
		 
	 

	 
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		Federal Solid Waste Disposal and the Federal
		Toxic Substances Control Act, the Federal Insecticide, Fungicide and
		Rodenticide Act, and the Federal Safe Drinking Water Act of 1974, (ii)
		applicable state counterparts to such laws and (iii) any common law or
		equitable doctrine that may impose liability or obligations for injuries or
		damages due to, or threatened as a result of, the presence of or exposure to
		any Hazardous Materials.
	 

	 
		1.34 “Equipment” shall mean, as to
		each Borrower and Guarantor, all of such Borrower’s and Guarantor’s
		now owned and hereafter acquired equipment, wherever located, including
		machinery, data processing and computer equipment (whether owned or licensed
		and including embedded software), vehicles, tools, furniture, fixtures, all
		attachments, accessions and property now or hereafter affixed thereto or used
		in connection therewith, and substitutions and replacements thereof, wherever
		located.
	 

	 
		1.35 “ERISA” shall mean the
		Employee Retirement Income Security Act of 1974, together with all rules,
		regulations and interpretations thereunder or related thereto.
	 

	 
		1.36 “ERISA Affiliate” shall mean
		any person required to be aggregated with any Borrower, any Guarantor or any of
		its or their respective Subsidiaries under Sections 414(b), 414(c), 414(m) or
		414(o) of the Code.
	 

	 
		1.37 “ERISA Event” shall mean (a)
		any “reportable event”, as defined in Section 4043(c) of ERISA or the
		regulations issued thereunder, with respect to a Benefit Plan; (b) the adoption
		of any amendment to a Benefit Plan that would require the provision of security
		pursuant to Section 401(a)(29) of the Code or Section 307 of ERISA; (c) the
		existence with respect to any Benefit Plan of an “accumulated funding
		deficiency” (as defined in Section 412 of the Code or Section 302 of
		ERISA), whether or not waived; (d) the filing pursuant to Section 412 of the
		Code or Section 303(d) of ERISA of an application for a waiver of the minimum
		funding standard with respect to any Benefit Plan; (e) the occurrence of a
		“prohibited transaction” with respect to which any Borrower,
		Guarantor or any of its or their respective Subsidiaries is a
		“disqualified person” (within the meaning of Section 4975 of the
		Code) or with respect to which any Borrower, Guarantor or any of its or their
		respective Subsidiaries could otherwise be liable; (f) a complete or partial
		withdrawal by any Borrower, Guarantor or any ERISA Affiliate from a
		Multiemployer Plan or a cessation of operations which is treated as such a
		withdrawal or notification that a Multiemployer Plan is in reorganization; (g)
		the filing of a notice of intent to terminate, the treatment of a Benefit Plan
		amendment as a termination under Section 4041 or 4041A of ERISA, or the
		commencement of proceedings by the Pension Benefit Guaranty Corporation to
		terminate a Benefit Plan; (h) an event or condition which might reasonably be
		expected to constitute grounds under Section 4042 of ERISA for the termination
		of, or the appointment of a trustee to administer, any Benefit Plan; (i) the
		imposition of any liability under Title IV of ERISA, other than the Pension
		Benefit Guaranty Corporation premiums due but not delinquent under Section 4007
		of ERISA, upon any Borrower, Guarantor or any ERISA Affiliate in excess of
		$500,000 and (j) any other event or condition with respect to a Benefit Plan
		including any Benefit Plan subject to Title IV of ERISA maintained, or
		contributed to, by any ERISA Affiliate that could reasonably be expected to
		result in liability of any Borrower in excess of $500,000.
	 

	 
		 
	 

	 
		 
	 

	 
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		1.38 “Eurodollar Rate” shall mean
		with respect to the Interest Period for a Eurodollar Rate Loan, the interest
		rate per annum equal to the arithmetic average of the rates of interest per
		annum (rounded upwards, if necessary, to the next one-sixteenth (1/16) of one
		(1%) percent) at which Reference Bank is offered deposits of United States
		dollars in the London interbank market (or other Eurodollar Rate market
		selected by a Borrower or Administrative Borrower on behalf of such Borrower
		and approved by Agent) on or about 9:00 a.m. (New York time) two (2)
		Business Days prior to the commencement of such Interest Period in amounts
		substantially equal to the principal amount of the Eurodollar Rate Loans
		requested by and available to such Borrower in accordance with this Agreement,
		with a maturity of comparable duration to the Interest Period selected by or on
		behalf of a Borrower.
	 

	 
		1.39 “Eurodollar Rate Loans” shall
		mean any Loans or portion thereof on which interest is payable based on the
		Adjusted Eurodollar Rate in accordance with the terms hereof.
	 

	 
		1.40 “Event of Default” shall mean
		the occurrence or existence of any event or condition described in Section 10.1
		hereof.
	 

	 
		1.41 “Excess Availability” shall
		mean, the amount, as determined by Agent, calculated at any date, equal to: (a)
		the Borrowing Base minus (b) the sum of: (i) the amount of all then outstanding
		and unpaid Obligations (but not including for this purpose any outstanding
		Letter of Credit Accommodations or LC Advances), plus (ii) the aggregate amount
		of all then outstanding and unpaid trade payables and other obligations of such
		Borrower which are outstanding more than sixty (60) days past due as of such
		time (other than trade payables or other obligations being contested or
		disputed by such Borrower in good faith), plus (iii) without duplication, the
		amount of checks issued by such Borrower to pay trade payables and other
		obligations which are more than sixty (60) days past due as of such time (other
		than trade payables or other obligations being contested or disputed by such
		Borrower in good faith), but not yet sent.
	 

	 
		1.42 “Exchange Act” shall mean the
		Securities Exchange Act of 1934, together with all rules, regulations and
		interpretations thereunder or related thereto.
	 

	 
		1.43 “Existing Letters of Credit”
		shall mean, collectively, the letters of credit issued for the account of a
		Borrower or Guarantor or for which such Borrower or Guarantor is otherwise
		liable listed on Schedule 1.43 hereto, as the same now exist or may hereafter
		be amended, modified, supplemented, extended, renewed, restated or
		replaced.
	 

	 
		1.44 “Existing Senior Noteholder
		Agreements” shall mean, collectively, the following (as the same have
		heretofore been amended, modified or supplemented): (a) the Existing Senior
		Note Indenture; (b) the Existing Senior Secured Notes; and (c) all other
		agreements, documents and instruments at any time executed and/or delivered by
		Borrowers or any Person with, to or in favor of Existing Senior Noteholder
		Collateral Agent or Existing Senior Noteholders in connection therewith or
		related thereto; sometimes being referred to herein individually as an
		“Existing Senior Noteholder Agreement”.
	 

	 
		1.45 “Existing Senior Noteholder
		Collateral Agent” shall mean The Bank of New York.
	 

	 
		 
	 

	 
		 
	 

	 
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		1.46 “Existing Senior Noteholder
		Debt” shall mean all obligations, liabilities and indebtedness of every
		kind, nature and description owing by Borrowers and Guarantors to Existing
		Senior Noteholder Collateral Agent and Existing Senior Noteholders under the
		Existing Senior Noteholder Agreements.
	 

	 
		1.47 “Existing Senior Noteholders”
		shall mean, collectively, the holders of the Existing Senior Secured
		Notes.
	 

	 
		1.48 “Existing Senior Note
		Indenture” shall mean the Indenture, dated April 22, 2004, among Parent,
		as Issuer, the guarantors named therein, and The Bank of New York, as Trustee
		and Collateral Agent, as amended by the First Supplemental Indenture, dated as
		of March 3, 2005, the Second Supplemental Indenture, dated as of June 30, 2005,
		and the Third Supplemental Indenture, dated as of March 31, 2006.
	 

	 
		1.49 “Existing Senior Secured
		Notes” shall mean the 12% Senior Secured Notes due 2008 and the Senior
		Secured Floating Rate Notes due 2008, in each case issued by Parent to Existing
		Senior Noteholders pursuant to the Existing Senior Note Indenture.
	 

	 
		1.50 “Existing Subordinated Note”
		shall mean the Second Amended and Restated Senior Unsecured Term Note, dated
		August 5, 2004, by Parent in favor of Airlie Opportunity Master Fund
		Ltd.
	 

	 
		1.51 “Existing Third Priority
		Collateral Agent” shall mean Airlie Opportunity Capital Management, L.P.,
		a Delaware limited partnership.
	 

	 
		1.52 “Existing Third Priority
		Debt” shall mean all obligations, liabilities and Indebtedness of every
		kind, nature or description owing by Borrowers or Guarantors to Existing Third
		Priority Collateral Agent and Existing Third Priority Noteholders under the
		Existing Third Priority Noteholder Agreements.
	 

	 
		1.53 “Existing Third Priority
		Noteholder Agreements” shall mean collectively, the following (as the same
		have heretofore been amended, modified or supplemented): (a) the Existing Third
		Priority Note Purchase Agreement, (b) the Existing Third Priority Notes, and
		(c) all other agreements, documents and instruments at any time executed
		and/or delivered by Borrowers or Guarantors with, to or in favor of Existing
		Third Priority Collateral Agent or Existing Third Priority Noteholders in
		connection therewith or related thereto; sometimes being referred to herein
		individually as a “Existing Third Priority Noteholder
		Agreement”.
	 

	 
		1.54 “Existing Third Priority
		Noteholders” shall mean collectively the holders of the Existing Third
		Priority Notes.
	 

	 
		1.55 “Existing Third Priority Note
		Purchase Agreement” shall mean the Note and Warrant Purchase Agreement,
		dated as of March 3, 2005, among Parent and Existing Third Priority Collateral
		Agent, as the same has heretofore been amended, modified or
		supplemented.
	 

	 
		1.56 “Existing Third Priority
		Notes” shall mean, collectively, the Third Priority Senior Note due 2008
		and the PIK interest notes issued to Existing Third Priority Noteholders
		pursuant to the Existing Third Priority Note Purchase Agreement.
	 

	 
		 
	 

	 
		 
	 

	 
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		1.57 “Fee Letter” shall mean the
		letter agreement, dated of even date herewith, by and between Administrative
		Borrower and Agent setting forth certain fees payable by Borrowers to Agent,
		for the benefit of itself and Lenders, as the same now exists or may hereafter
		be amended, modified, supplemented, extended, renewed, restated or
		replaced.
	 

	 
		1.58 “Financing Agreements” shall
		mean, collectively, this Agreement and all notes, guarantees, security
		agreements, deposit account control agreements, investment property control
		agreements, intercreditor agreements and all other agreements, documents and
		instruments now or at any time hereafter executed and/or delivered by any
		Borrower or Obligor in connection with this Agreement; provided,
		that, in no event shall the term Financing Agreements be
		deemed to include any Hedge Agreement.
	 

	 
		1.59 “GAAP” shall mean generally
		accepted accounting principles in the United States of America as in effect
		from time to time as set forth in the opinions and pronouncements of the
		Accounting Principles Board and the American Institute of Certified Public
		Accountants and the statements and pronouncements of the Financial Accounting
		Standards Board which are applicable to the circumstances as of the date of
		determination consistently applied, except that, for purposes of Sections 9.17
		hereof, GAAP shall be determined on the basis of such principles in effect on
		the date hereof and consistent with those used in the preparation of the most
		recent audited financial statements delivered to Agent prior to the date
		hereof.
	 

	 
		1.60 “Governmental Authority”
		shall mean any nation or government, any state, province, or other political
		subdivision thereof, any central bank (or similar monetary or regulatory
		authority) thereof, and any entity exercising executive, legislative, judicial,
		regulatory or administrative functions of or pertaining to government.
	 

	 
		1.61 “Guarantors” shall mean,
		collectively, any Person that at any time after the date hereof becomes party
		to a guarantee in favor of Agent or any Lender or otherwise liable on or with
		respect to the Obligations or who is the owner of any property which is
		security for the Obligations (other than Borrowers), together with their
		respective successors and assigns; each sometimes being referred to herein
		individually as a “Guarantor”.
	 

	 
		1.62 “Hazardous Materials” shall
		mean any hazardous, toxic or dangerous substances, materials and wastes,
		including hydrocarbons (including naturally occurring or man-made petroleum and
		hydrocarbons), flammable explosives, asbestos, urea formaldehyde insulation,
		radioactive materials, biological substances, polychlorinated biphenyls,
		pesticides, herbicides and any other kind and/or type of pollutants or
		contaminants (including materials which include hazardous constituents),
		sewage, sludge, industrial slag, solvents and/or any other similar substances,
		materials, or wastes and including any other substances, materials or wastes
		that are or become regulated under any Environmental Law (including any that
		are or become classified as hazardous or toxic under any Environmental
		Law).
	 

	 
		1.63 “Hedge Agreement” shall mean
		an agreement between any Borrower or Guarantor and any Bank Product Provider
		that is a rate swap agreement, basis swap, forward rate agreement, commodity
		swap, interest rate option, forward foreign exchange agreement, spot foreign
		exchange agreement, rate cap agreement rate, floor agreement, rate collar
		agreement, currency swap agreement, cross-currency rate swap agreement,
		currency option, any other 
	 

	 
		 
	 

	 
		 
	 

	 
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		similar agreement (including any option to
		enter into any of the foregoing or a master agreement for any the foregoing
		together with all supplements thereto) for the purpose of protecting against or
		managing exposure to fluctuations in interest or exchange rates, currency
		valuations or commodity prices; sometimes being collectively referred to herein
		as “Hedge Agreements”. 
	 

	 
		1.64 “Inactive Subsidiaries” shall
		mean, collectively, the following: Atlantic Paratrans of Arizona, Inc., an
		Arizona corporation (“AP-AZ”), 201 West Sotello Realty, Inc., a
		California corporation (“Sotello”), Wrightholm Bus Line, Inc., a
		Vermont corporation (“Wrightholm”), Airport Services, Inc., a
		Massachusetts corporation (“Airport”), McIntire Transportation, Inc.,
		a Massachusetts corporation (“McIntire”), Central New York
		Reorganization Corp. (f/k/a Central New York Coach Sales & Service, Inc.),
		a New York corporation (“Central”), Jersey Bus Sales, Inc., a New
		Jersey corporation (“Jersey”), Atlantic-Chittenango Real Property
		Corp., a New York corporation (“Chittenango”), Atlantic-Conn.
		Transit, Inc., a Connecticut corporation (“Atlantic Conn.”), Atlantic
		Paratrans of Pennsylvania, Inc., a Pennsylvania corporation (“APPA”),
		Mountain-Atlantic, Inc., a Vermont corporation (“Mountain”), and
		Atlantic Express of South Carolina, Inc., a South Carolina corporation
		(“AESC”); each sometimes being referred to herein individually as an
		“Inactive Subsidiary”.
	 

	 
		1.65 “Indebtedness” shall mean,
		with respect to any Person, any liability, whether or not contingent, (a) in
		respect of borrowed money (whether or not the recourse of the lender is to the
		whole of the assets of such Person or only to a portion thereof) or evidenced
		by bonds, notes, debentures or similar instruments; (b) representing the
		balance deferred and unpaid of the purchase price of any property or services
		(except any such balance that constitutes an account payable to a trade
		creditor (whether or not an Affiliate) created, incurred, assumed or guaranteed
		by such Person in the ordinary course of business of such Person in connection
		with obtaining goods, materials or services that is not overdue by more than
		ninety (90) days, unless the trade payable is being contested in good faith);
		(c) all obligations as lessee under leases which have been, or should be, in
		accordance with GAAP recorded as Capital Leases; (d) any contractual
		obligation, contingent or otherwise, of such Person to pay or be liable for the
		payment of any indebtedness described in this definition of another Person,
		including, without limitation, any such indebtedness, directly or indirectly
		guaranteed, or any agreement to purchase, repurchase, or otherwise acquire such
		indebtedness, obligation or liability or any security therefor, or to provide
		funds for the payment or discharge thereof, or to maintain solvency, assets,
		level of income, or other financial condition; (e) all obligations with respect
		to redeemable stock and redemption or repurchase obligations under any Capital
		Stock or other equity securities issued by such Person; (f) all reimbursement
		obligations and other liabilities of such Person with respect to surety bonds
		(whether bid, performance or otherwise), letters of credit, banker’s
		acceptances, drafts or similar documents or instruments issued for such
		Person’s account; (g) all indebtedness of such Person in respect of
		indebtedness of another Person for borrowed money or indebtedness of another
		Person otherwise described in this definition which is secured by any
		consensual lien, security interest, collateral assignment, conditional sale,
		mortgage, deed of trust, or other encumbrance on any asset of such Person,
		whether or not such obligations, liabilities or indebtedness are assumed by or
		are a personal liability of such Person, all as of such time; (h) all
		obligations, liabilities and indebtedness of such Person (marked to market)
		arising under swap agreements, cap agreements and collar agreements and other
		agreements or arrangements designed to protect such person against fluctuations
		in interest rates or currency or commodity values; (i) all obligations owed by
		such Person under License Agreements with respect to non-
	 

	 
		 
	 

	 
		 
	 

	 
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		refundable, advance or minimum guarantee
		royalty payments; and (j) the principal and interest portions of all rental
		obligations of such Person under any synthetic lease or similar off-balance
		sheet financing where such transaction is considered to be borrowed money for
		tax purposes but is classified as an operating lease in accordance with
		GAAP.
	 

	 
		1.66 “Information Certificate”
		shall mean, collectively, the Information Certificate of Borrowers and
		Guarantors constituting Exhibit B hereto containing material information with
		respect to Borrowers and Guarantors, their respective businesses and assets
		provided by or on behalf of Borrowers and Guarantors to Agent in connection
		with the preparation of this Agreement and the other Financing Agreements and
		the financing arrangements provided for herein.
	 

	 
		1.67 “Intellectual Property” shall
		mean, as to each Borrower and Guarantor, such Borrower’s and
		Guarantor’s now owned and hereafter arising or acquired: patents, patent
		rights, patent applications, copyrights, works which are the subject matter of
		copyrights, copyright registrations, trademarks, trade names, trade styles,
		trademark and service mark applications, and licenses and rights to use any of
		the foregoing; all extensions, renewals, reissues, divisions, continuations,
		and continuations-in-part of any of the foregoing; all rights to sue for past,
		present and future infringement of any of the foregoing; inventions, trade
		secrets, formulae, processes, compounds, drawings, designs, blueprints,
		surveys, reports, manuals, and operating standards; goodwill (including any
		goodwill associated with any trademark or the license of any trademark);
		customer and other lists in whatever form maintained; trade secret rights,
		copyright rights, rights in works of authorship, domain names and domain name
		registration; software and contract rights relating to computer software
		programs, in whatever form created or maintained.
	 

	 
		1.68 “Intercreditor Agreement”
		shall mean the Intercreditor Agreement, dated of even date herewith, by and
		between Agent and Noteholder Collateral Agent, as acknowledged and agreed to by
		Borrowers and Guarantor, as the same now exists or may hereafter be amended,
		modified, supplemented, extended, renewed, restated or replaced.
	 

	 
		1.69 “Interest Expense” shall
		mean, for any period, as to any Person, as determined in accordance with GAAP,
		the total interest expense of such Person and its Subsidiaries on a
		consolidated basis for such period, whether paid or accrued (including the
		interest component of Capital Leases for such period), including, without
		limitation, all bank fees, commissions, discounts and other fees and charges
		owed with respect to letters of credit, banker’s acceptances or similar
		instruments which, in accordance with GAAP, are required to be accounted for as
		interest expense and fees payable pursuant to Section 3.2 hereof.
	 

	 
		1.70 “Interest Period” shall mean
		for any Eurodollar Rate Loan, a period of approximately one (1), two (2), or
		three (3) months duration as any Borrower (or Administrative Borrower on behalf
		of such Borrower) may elect, the exact duration to be determined in accordance
		with the customary practice in the applicable Eurodollar Rate market; provided,
		that, such Borrower (or Administrative Borrower on behalf of such Borrower) may
		not elect an Interest Period which will end after the last day of the
		then-current term of this Agreement.
	 

	 
		 
	 

	 
		 
	 

	 
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		1.71 “Interest Rate” shall mean,
		
	 

	 
		(a) Subject to clause (b) of this definition
		below:
	 

	 
		(i) as to Loans which are Prime Rate Loans,
		a rate equal to the Prime Rate, 
	 

	 
		(ii) as to Loans which are Eurodollar Rate
		Loans, a rate equal to two and one-quarter (2.25%) percent per annum in excess
		of the Adjusted Eurodollar Rate (in each case, based on the Eurodollar Rate
		applicable for the Interest Period selected by a Borrower, or by Administrative
		Borrower on behalf of such Borrower, as in effect three (3) Business Days after
		the date of receipt by Agent of the request of or on behalf of such Borrower
		for such Eurodollar Rate Loans in accordance with the terms hereof, whether
		such rate is higher or lower than any rate previously quoted to any Borrower or
		Guarantor).
	 

	 
		(b) Notwithstanding anything to the contrary contained
		in clause (a) of this definition, the Interest Rate shall mean (i) the rate of
		two (2%) percent per annum in excess of the Prime Rate as to Loans which are
		Prime Rate Loans, and (ii) the rate of four and one-quarter (4.25%) percent per
		annum in excess of the Adjusted Eurodollar Rate as to Eurodollar Rate Loans, at
		Agent’s option, or at the written direction of Required Lenders, without
		notice, (A) either (1) for the period on and after the date of termination or
		non-renewal hereof until such time as all Obligations are indefeasibly paid and
		satisfied in full in immediately available funds, or (2) for the period from
		and after the date of the occurrence of any Event of Default, and for so long
		as such Event of Default is continuing as determined by Agent and (B)on the
		Revolving Loans to any Borrower at any time outstanding in excess of the
		Borrowing Base or on LC Advances to any Borrower at any time outstanding in
		excess of the Letter of Credit Facility Limit (whether or not such excess(es)
		arise or are made with or without Agent’s or any Lender’s knowledge
		or consent and whether made before or after an Event of Default).
	 

	 
		1.72 “Inventory” shall mean, as to
		each Borrower and Guarantor, all of such Borrower’s and Guarantor’s
		now owned and hereafter existing or acquired goods, wherever located, which (a)
		are leased by such Borrower or Guarantor as lessor; (b) are held by such
		Borrower for sale or lease or to be furnished under a contract of service; (c)
		are furnished by such Borrower or Guarantor under a contract of service; or (d)
		consist of raw materials, work in process, finished goods or materials used or
		consumed in its business.
	 

	 
		1.73 “Investment Property Control
		Agreement” shall mean an agreement in writing, in form and substance
		satisfactory to Agent, by and among Agent, any Borrower or Guarantor (as the
		case may be) and any securities intermediary, commodity intermediary or other
		person who has custody, control or possession of any investment property of
		such Borrower or Guarantor acknowledging that such securities intermediary,
		commodity intermediary or other person has custody, control or possession of
		such investment property on behalf of Agent, that it will comply with
		entitlement orders originated by Agent with respect to such investment
		property, or other instructions of Agent, or (as the case may be) apply any
		value distributed on account of any commodity contract as directed by Agent, in
		each case, without the further consent of such Borrower or Guarantor and
		including such other terms and conditions as Agent may require.
	 

	 
		 
	 

	 
		 
	 

	 
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		1.74 “Junior Participants” shall
		mean, collectively, GSCP II Holdings (AE), L.L.C., a Delaware limited
		liability company, and GSC Recovery II, L.P., a Delaware limited
		partnership.
	 

	 
		1.75 “Junior Participation
		Agreement” shall mean the Junior Participation Agreement, dated as of
		October 14, 2004, as amended by Amendment No. 1 to Junior Participation
		Agreement, dated as of November 8, 2005, and Amendment No. 2 and Consent to
		Junior Participation Agreement, dated as of October 12, 2006, among Wachovia,
		Junior Participants and GSC Recovery II Asset Trust.
	 

	 
		1.76 “LC Advances” shall mean any
		payments made by Agent on behalf of Lenders in respect of amounts drawn under
		Letter of Credit Accommodations or funded obligations incurred by Agent or any
		Lender in respect of any Letter of Credit Accommodations, including without
		limitation, any of the same made after termination or non-renewal of this
		Agreement or the other Financing Agreements with respect to any Letter of
		Credit Accommodations extended prior to such termination or non-renewal.

	 

	 
		1.77 “Lenders” shall mean the
		financial institutions who are signatories hereto as Lenders and other persons
		made a party to this Agreement as a Lender in accordance with Section 13.7
		hereof, and their respective successors and assigns; each sometimes being
		referred to herein individually as a “Lender”.
	 

	 
		1.78 “Letter of Credit
		Accommodations” shall mean, collectively, the letters of credit,
		merchandise purchase or other guaranties which are from time to time either (a)
		issued or opened by Agent or any Lender for the account of any Borrower or
		Obligor or (b) with respect to which Agent or Lenders have agreed to indemnify
		the issuer or guaranteed to the issuer the performance by any Borrower or
		Obligor of its obligations to such issuer (including, without limitation, the
		Existing Letters of Credit); sometimes being referred to herein individually as
		“Letter of Credit Accommodation”.
	 

	 
		1.79 “Letter of Credit
		Availability” shall mean, at any time, the Letter of Credit Facility Limit
		minus the sum of (a) the aggregate outstanding amount of Letter of Credit
		Accommodations and (b) the aggregate outstanding principal amount of LC
		Advances.
	 

	 
		1.80 “Letter of Credit Facility
		Limit” shall mean $10,000,000.
	 

	 
		1.81 “License Agreements” shall
		have the meaning set forth in Section 8.11 hereof.
	 

	 
		1.82 “Loans” shall mean the
		Revolving Loans and LC Advances.
	 

	 
		1.83 “Material Adverse Effect”
		shall mean a material adverse effect on (a) the financial condition, business,
		performance, prospects, or operations of Borrowers or the legality, validity or
		enforceability of this Agreement or any of the other Financing Agreements; (b)
		the legality, validity, enforceability, perfection or priority of the security
		interests and liens of Agent upon the Collateral; (c) the Collateral or its
		value, (d) the ability of Borrowers, taken as a whole, to repay the Obligations
		or of Borrowers, taken as a whole, to perform their obligations under this
		Agreement or any of the other Financing Agreements as and when to be performed;
		or (e) the ability of Agent or any Lender to enforce the Obligations or realize
		upon the Collateral or 
	 

	 
		 
	 

	 
		 
	 

	 
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		otherwise with respect to the rights and
		remedies of Agent and Lenders under this Agreement or any of the other
		Financing Agreements.
	 

	 
		1.84 “Material Contract” shall
		mean (a) any contract or other agreement (other than the Financing Agreements),
		written or oral, of any Borrower or Guarantor involving monetary liability by
		any Borrower or Guarantor to any Person in an amount in excess of $3,000,000 in
		any fiscal year of Borrowers, (b) any contract or other agreement, written or
		oral, of any Borrower or Guarantor involving the performance of services by any
		Borrower or Guarantor for any Person where the monetary liability of such
		Person is in an amount in excess of $7,500,000 in any fiscal year, and (c) any
		other contract or other agreement (other than the Financing Agreements),
		whether written or oral, to which any Borrower or Guarantor is a party as to
		which the breach, nonperformance, cancellation or failure to renew by any party
		thereto would have a Material Adverse Effect.
	 

	 
		1.85 “Maximum Credit” shall mean
		the amount equal to the sum of the Revolving Loan Limit plus the Letter of
		Credit Facility Limit (without giving effect to any repayments of LC
		Advances).
	 

	 
		1.86 “Mortgages” shall mean,
		individually and collectively, each of the following (as the same now exist or
		may hereafter be amended, modified, supplemented, extended, renewed, restated
		or replaced): (a) the Amended and Restated Mortgage, Assignment of Leases and
		Rents, Security Agreement and Fixture Filing, dated December 22, 2000, by
		Metro, Midway and Atlantic-Queens in favor of Agent, with respect to the Real
		Property and related assets of such Borrowers located in Ridgewood, New York,
		East Setauket, New York, Medford, New York and Oceanside, New York, as modified
		by the Spreader, Subordination, Amendment and Restatement of Mortgage, dated as
		of December 24, 2003, Modification No. 1 to Spreader, Subordination, Amendment
		and Restatement of Mortgage, dated as of April 22, 2004, and Modification No. 2
		to Spreader, Subordination, Amendment and Restatement of Mortgage, dated of
		even date herewith; and (b) the Amended and Restated Mortgage, Assignment of
		Leases and Rents, Security Agreement and Fixture Filing, dated December 22,
		2000, by JBL in favor of Agent with respect to the Real Property and related
		assets of such Borrower located in South Hampton, New Jersey, as modified by
		the Spreader, Subordination, Amendment and Restatement of Mortgage, dated as of
		December 24, 2003, Modification No. 1 to Spreader, Subordination, Amendment and
		Restatement of Mortgage, dated as of April 22, 2004, and Modification No. 2 to
		Spreader, Subordination, Amendment and Restatement of Mortgage, dated of even
		date herewith.
	 

	 
		1.87 “Multiemployer Plan” shall
		mean a “multi-employer plan” as defined in Section 4001(a)(3) of
		ERISA which is or was at any time during the current year or the immediately
		preceding six (6) years contributed to by any Borrower, Guarantor or any ERISA
		Affiliate.
	 

	 
		1.88 “Net Amount of Eligible
		Accounts” shall mean, as to any Borrower, the gross amount of the Eligible
		Accounts of such Borrower less (a) sales, excise or similar taxes included in
		the amount thereof and (b) returns, discounts, claims, credits and allowances
		of any nature at any time issued, owing, granted, outstanding, available or
		claimed with respect thereto.
	 

	 
		 
	 

	 
		 
	 

	 
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		1.89 “Net Cash Proceeds” shall
		mean the aggregate cash proceeds payable to any Borrower or Guarantor (and
		received by Agent) in respect of the sale price for any asset(s) (including,
		without limitation, Capital Stock) of such Borrower or Guarantor, net of the
		direct costs relating to such sale (including, without limitation, legal,
		accounting and investment banking fees, and sales commissions), taxes paid or
		payable as a result thereof, and amounts required to be applied to the
		repayment of Indebtedness secured by a lien on the asset or assets that are the
		subject of such sale. Net Cash Proceeds shall exclude any non-cash proceeds
		received from any sale but shall include such proceeds when and as converted by
		any Borrower or Guarantor to cash and received by Agent in accordance with the
		terms hereof. 
	 

	 
		1.90 “Noteholder Agreements” shall
		mean, collectively, the following (as the same now exist or may hereafter be
		amended, modified, supplemented, extended, renewed, restated or replaced): (a)
		the Note Indenture; (b) the Senior Secured Notes; (c) the Security Agreement,
		dated of even date herewith, among Borrowers and Noteholder Collateral Agent;
		and (d) all other agreements, documents and instruments at any time executed
		and/or delivered by any Borrower or any Person with, to or in favor of
		Noteholder Collateral Agent in connection therewith or related thereto;
		sometimes being referred to herein individually as a “Noteholder
		Agreement”.
	 

	 
		1.91 “Noteholder Collateral Agent”
		shall mean The Bank of New York, and its successors and assigns.
	 

	 
		1.92 “Noteholder Debt” shall mean
		all obligations, liabilities and indebtedness of every kind, nature and
		description owing by Parent or any Borrower or Guarantor to Noteholder
		Collateral Agent and Noteholders, including principal, interest, charges, fees,
		premiums, indemnities, costs and expenses, however evidenced, whether as
		principal, surety, endorser, guarantor or otherwise, arising under the
		Noteholder Agreements.
	 

	 
		1.93 “Noteholders” shall mean the
		holders of the Senior Secured Notes and their respective successors and
		assigns.
	 

	 
		1.94 “Note Indenture” shall mean
		the Indenture, dated of even date herewith, made by Parent, as Issuer, The Bank
		of New York, as Trustee and the guarantors named therein, as same now exists or
		may hereafter be amended, modified, supplemented, extended, renewed, restated
		or replaced.
	 

	 
		1.95 “Obligations” shall mean
		shall mean (a) any and all Loans, Letter of Credit Accommodations and all other
		obligations, liabilities and indebtedness of every kind, nature and description
		owing by any or all of Borrowers to Agent or any Lender and/or any of their
		Affiliates, including principal, interest, charges, fees, costs and expenses,
		however evidenced, whether as principal, surety, endorser, guarantor or
		otherwise, arising under this Agreement or any of the other Financing
		Agreements, whether now existing or hereafter arising, whether arising before,
		during or after the initial or any renewal term of this Agreement or after the
		commencement of any case with respect to such Borrower under the United States
		Bankruptcy Code or any similar statute (including the payment of interest and
		other amounts which would accrue and become due but for the commencement of
		such case, whether or not such amounts are allowed or allowable in whole or in
		part in such case), whether direct or indirect, absolute or 
	 

	 
		 
	 

	 
		 
	 

	 
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		contingent, joint or several, due or not
		due, primary or secondary, liquidated or unliquidated, or secured or unsecured,
		and (b) for purposes only of Section 5.1 hereof and subject to the priority in
		right of payment set forth in Section 6.4 hereof, all obligations, liabilities
		and indebtedness of every kind, nature and description owing by any or all of
		Borrowers or Guarantors to Agent or any Bank Product Provider arising under or
		pursuant to any Bank Products, whether now existing or hereafter arising,
		provided, that, (i) as to
		any such obligations, liabilities and indebtedness arising under or pursuant to
		a Hedge Agreement, the same shall only be included within the Obligations if
		upon Agent’s request, Agent shall have entered into an agreement, in form
		and substance satisfactory to Agent, with the Bank Product Provider that is a
		counterparty to such Hedge Agreement, as acknowledged and agreed to by
		Borrowers and Guarantors, providing for the delivery to Agent by such
		counterparty of information with respect to the amount of such obligations and
		providing for the other rights of Agent and such Bank Product Provider in
		connection with such arrangements, (ii) any Bank Product Provider, other than
		Wachovia and its Affiliates, shall have delivered written notice to Agent that
		(A) such Bank Product Provider has entered into a transaction to provide Bank
		Products to a Borrower and Guarantor and (B) the obligations arising pursuant
		to such Bank Products provided to Borrowers and Guarantors constitute
		Obligations entitled to the benefits of the security interest of Agent granted
		hereunder, and Agent shall have accepted such notice in writing and (iii) in no
		event shall any Bank Product Provider acting in such capacity to whom such
		obligations, liabilities or indebtedness are owing be deemed a Lender for
		purposes hereof to the extent of and as to such obligations, liabilities or
		indebtedness except that each reference to the term “Lender” in
		Sections 12.1, 12.2, 12.3(b), 12.6, 12.7, 12.9, 12.12 and 13.6 hereof shall be
		deemed to include such Bank Product Provider and in no event shall the approval
		of any such person in its capacity as Bank Product Provider be required in
		connection with the release or termination of any security interest or lien of
		Agent. Notwithstanding anything to the contrary contained herein,
		“Obligations” shall include Bank Products for purposes of the
		definition of “Revolving Loan Debt” set forth in the Intercreditor
		Agreement.
	 

	 
		1.96 “Obligor” shall mean any
		guarantor, endorser, acceptor, surety or other person liable on or with respect
		to the Obligations or who is the owner of any property which is security for
		the Obligations (including, without limitation, Guarantors), other than
		Borrowers.
	 

	 
		1.97 “Parent” shall mean Atlantic
		Express Transportation Corp., a New York corporation, and its successors and
		assigns.
	 

	 
		1.98 “Participant” shall mean any
		financial institution that acquires and holds a participation in the interest
		of any Lender in any of the Loans and Letter of Credit Accommodations in
		conformity with the provisions of Section 13.7 of this Agreement governing
		participations.
	 

	 
		1.99 “Permitted Holders” shall
		mean, collectively, GSCP (NJ), Inc., a Delaware corporation, and its
		affiliates, including GSCP II Holdings (AE), LLC, GSC Recovery II, L.P., GSC
		Partners CDO Fund, Ltd., and their respective successors and assigns.
	 

	 
		1.100 “Person” or
		“person” shall mean any individual, sole proprietorship, partnership,
		corporation (including any corporation which elects subchapter S status under
		the Code), limited liability company, limited liability partnership, business
		trust, unincorporated association, joint 
	 

	 
		 
	 

	 
		 
	 

	 
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		stock corporation, trust, joint venture or
		other entity or any government or any agency or instrumentality or political
		subdivision thereof.
	 

	 
		1.101 “Plan of Reorganization”
		shall mean the First Amended Joint Plan of Reorganization of Atlantic Express
		and its Subsidiaries dated July 21, 2003, as confirmed by order of the United
		States Bankruptcy Court for the Southern District of New York on September 4,
		2003 and all amendments, supplements and modifications thereto.
	 

	 
		1.102 “Prime Rate” shall mean the
		rate from time to time publicly announced by Wachovia Bank, National
		Association, or its successors, as its prime rate, whether or not such
		announced rate is the best rate available at such bank.
	 

	 
		1.103 “Prime Rate Loans” shall
		mean any Loans or portion thereof on which interest is payable based on the
		Prime Rate in accordance with the terms hereof.
	 

	 
		1.104 “Pro Rata Share” shall mean
		as to any Lender, the fraction (expressed as a percentage) the numerator of
		which is such Lender’s Commitment and the denominator of which is the
		aggregate amount of all of the Commitments of Lenders, as adjusted from time to
		time in accordance with the provisions of Section 13.7 hereof; provided, that,
		if the Commitments have been terminated, the numerator shall be the unpaid
		amount of such Lender’s Loans and its interest in the Letter of Credit
		Accommodations and the denominator shall be the aggregate amount of all unpaid
		Loans and Letter of Credit Accommodations. 
	 

	 
		1.105 “Provision for Taxes” shall
		mean an amount equal to all taxes imposed on or measured by net income, whether
		Federal, State, Provincial, county or local, and whether foreign or domestic,
		that are paid or payable by any Person in respect of any period in accordance
		with GAAP.
	 

	 
		1.106 “Real Property” shall mean
		all now owned and hereafter acquired real property of each Borrower and
		Guarantor, including leasehold interests, together with all buildings,
		structures, and other improvements located thereon and all licenses, easements
		and appurtenances relating thereto, wherever located, including the real
		property and related assets more particularly described in the
		Mortgages.
	 

	 
		1.107 “Receivables” shall mean all
		of the following now owned or hereafter arising or acquired property of each
		Borrower and Guarantor: (a) all Accounts; (b) all interest, fees, late charges,
		penalties, collection fees and other amounts due or to become due or otherwise
		payable in connection with any Account; (c) all payment intangibles of such
		Borrower or Guarantor; (d) letters of credit, indemnities, guarantees, security
		or other deposits and proceeds thereof issued payable to any Borrower or
		Guarantor or otherwise in favor of or delivered to any Borrower or Guarantor in
		connection with any Account; or (e) all other accounts, contract rights,
		chattel paper, instruments, notes, general intangibles and other forms of
		obligations owing to any Borrower or Guarantor, whether from the sale and lease
		of goods or other property, licensing of any property (including Intellectual
		Property or other general intangibles), rendition of services or from loans or
		advances by any Borrower or Guarantor or to or for the benefit of any third
		person (including loans or advances to any Affiliates or Subsidiaries of any
		Borrower or Guarantor) or otherwise associated with any Accounts, Inventory or
		general intangibles of any 
	 

	 
		 
	 

	 
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		Borrower or Guarantor (including, without
		limitation, choses in action, causes of action, tax refunds, tax refund claims,
		any funds which may become payable to any Borrower or Guarantor in connection
		with the termination of any Benefit Plan or other employee benefit plan and any
		other amounts payable to any Borrower or Guarantor from any Benefit Plan or
		other employee benefit plan, rights and claims against carriers and shippers,
		rights to indemnification, business interruption insurance and proceeds
		thereof, casualty or any similar types of insurance and any proceeds thereof
		and proceeds of insurance covering the lives of employees on which any Borrower
		or Guarantor is a beneficiary).
	 

	 
		1.108 “Records” shall mean, as to
		each Borrower and Guarantor, all of such Borrower’s and Guarantor’s
		present and future books of account of every kind or nature, purchase and sale
		agreements, invoices, ledger cards, bills of lading and other shipping
		evidence, statements, correspondence, memoranda, credit files and other data
		relating to the Collateral or any account debtor, together with the tapes,
		disks, diskettes and other data and software storage media and devices, file
		cabinets or containers in or on which the foregoing are stored (including any
		rights of any Borrower or Guarantor with respect to the foregoing maintained
		with or by any other person).
	 

	 
		1.109 “Reference Bank” shall mean
		Wachovia Bank, National Association, or such other bank as Agent may from time
		to time designate.
	 

	 
		1.110 “Register” shall have the
		meaning set forth in Section 13.7 hereof.
	 

	 
		1.111 “Required Lenders” shall
		mean, at any time, those Lenders whose Pro Rata Shares aggregate sixty-six and
		two-thirds (66 2/3%) percent or more of the aggregate of the Commitments of all
		Lenders, or if the Commitments shall have been terminated, Lenders to whom at
		least sixty-six and two-thirds (66 2/3%) percent of the then outstanding
		Obligations are owing.
	 

	 
		1.112 “Reserves” shall mean as of
		any date of determination, such amounts as Agent may from time to time
		establish and revise in good faith reducing the amount of Loans and Letter of
		Credit Accommodations which would otherwise be available to any Borrower under
		the lending formula(s) provided for herein: (a) to reflect events, conditions,
		contingencies or risks which, as determined by Agent in good faith, adversely
		affect, or would have a reasonable likelihood of adversely affecting, either
		(i) the Collateral or any other property which is security for the Obligations
		or its value or (ii) the assets, business or prospects of any Borrower or
		Obligor or (iii) the security interests and other rights of Agent or any Lender
		in the Collateral (including the enforceability, perfection and priority
		thereof) or (b) to reflect Agent’s good faith belief that any collateral
		report or financial information furnished by or on behalf of any Borrower or
		Obligor to Agent is or may have been incomplete, inaccurate or misleading in
		any material respect or (c) to reflect outstanding Letter of Credit
		Accommodations and LC Advances as provided in Section 2.2 hereof or (d) in
		respect of any state of facts which Agent determines in good faith constitutes
		a Default or an Event of Default. Without limiting the generality of the
		foregoing, Reserves may be established (i) to reflect that dilution with
		respect to the Accounts (based on the ratio of the aggregate amount of non-cash
		reductions in Accounts for any period to the aggregate dollar amount of the
		sales of Borrower for such period) as calculated by Agent for any period is or
		is reasonably anticipated to be greater than five (5%) percent and (ii) to
		reflect 
	 

	 
		 
	 

	 
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		obligations, liabilities or indebtedness
		(contingent or otherwise) of Borrowers or Guarantors to Agent or any Bank
		Product Provider arising under or in connection with any Bank Products or as
		such Bank Product Provider may otherwise require in connection therewith to the
		extent that such obligations, liabilities or indebtedness constitute
		Obligations as such term is defined herein or otherwise receive the benefit of
		the security interest of Agent in any Collateral. To the extent Agent may
		revise the lending formulas used to determine the Borrowing Base or establish
		new criteria or revise existing criteria for Eligible Accounts so as to address
		any circumstances, condition, event or contingency in a manner satisfactory to
		Agent, Agent shall not establish a Reserve for the same purpose. The amount of
		any Reserve established by Agent shall have a reasonable relationship to the
		event, condition or other matter which is the basis for such reserve as
		determined by Agent in good faith.
	 

	 
		1.113 “Revolving Loan Limit” shall
		mean $35,000,000.
	 

	 
		1.114 “Revolving Loans” shall mean
		the loans now or hereafter made by or on behalf of any Lender or by Agent for
		the account of any Lender on a revolving basis pursuant to the Credit Facility
		(involving advances, repayments and readvances) as set forth in Section 2.1
		hereof.
	 

	 
		1.115 “Rolling Stock” shall mean
		all motor vehicles and buses of Borrowers and Guarantors, whether now owned or
		hereafter acquired.
	 

	 
		1.116 “Secured Parties” shall
		mean, collectively, (a) Agent, (b) Lenders, and (c) Bank Product Providers (to
		the extent approved by Agent).
	 

	 
		1.117 “Senior Secured Notes” shall
		mean Parent’s Senior Secured Floating Rate Notes due 2012 issued pursuant
		to the Note Indenture.
	 

	 
		1.118 “Solvent” shall mean, at any
		time with respect to any Person, that at such time such Person (a) is able to
		pay its debts as they mature and has (and has a reasonable basis to believe it
		will continue to have) sufficient capital (and not unreasonably small capital)
		to carry on its business consistent with its practices as of the date hereof,
		and (b) the assets and properties of such Person at a fair valuation (and
		including as assets for this purpose at a fair valuation all rights of
		subrogation, contribution or indemnification arising pursuant to any guarantees
		given by such Person) are greater than the Indebtedness of such Person, and
		including subordinated and contingent liabilities computed at the amount which,
		such person has a reasonable basis to believe, represents an amount which can
		reasonably be expected to become an actual or matured liability (and including
		as to contingent liabilities arising pursuant to any guarantee the face amount
		of such liability as reduced to reflect the probability of it becoming a
		matured liability).
	 

	 
		1.119 “Special Agent Advances”
		shall have the meaning set forth in Section 12.11 hereof.
	 

	 
		1.120 “Subsidiary” or
		“subsidiary” shall mean, with respect to any Person, any corporation,
		limited liability company, limited liability partnership or other limited or
		general partnership, trust, association or other business entity of which an
		aggregate of at least a majority of the outstanding Capital Stock or other
		interests entitled to vote in the election of the board of directors of such
		corporation (irrespective of whether, at the time, Capital Stock of any
		other
	 

	 
		 
	 

	 
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		class or classes of such corporation shall
		have or might have voting power by reason of the happening of any contingency),
		managers, trustees or other controlling persons, or an equivalent controlling
		interest therein, of such Person is, at the time, directly or indirectly, owned
		by such Person and/or one or more subsidiaries of such Person.
	 

	 
		1.121 “Termination Date” shall
		have the meaning set forth in Section 13.1 hereof.
	 

	 
		1.122 “UCC” shall mean the Uniform
		Commercial Code as in effect in the State of New York, and any successor
		statute, as in effect from time to time (except that terms used herein which
		are defined in the Uniform Commercial Code as in effect in the State of New
		York on the date hereof shall continue to have the same meaning notwithstanding
		any replacement or amendment of such statute except as Agent may otherwise
		determine). 
	 

	 
		1.123 “Voting Stock” shall mean
		with respect to any Person, (a) one (1) or more classes of Capital Stock of
		such Person having general voting powers to elect at least a majority of the
		board of directors, managers or trustees of such Person, irrespective of
		whether at the time Capital Stock of any other class or classes have or might
		have voting power by reason of the happening of any contingency, and (b) any
		Capital Stock of such Person convertible or exchangeable without restriction at
		the option of the holder thereof into Capital Stock of such Person described in
		clause (a) of this definition.
	 

	 
		1.124 “Wachovia” shall mean
		Wachovia Bank, National Association, in its individual capacity, and its
		successors and assigns.
	 

	 
		1.125 “Warrants” shall mean the
		warrants to purchase up to 162,900 shares of common stock of Parent, which
		warrants were issued in connection with the issuance of the Existing Senior
		Secured Notes and the Existing Third Priority Notes.
	 

	 
		SECTION 2. CREDIT FACILITIES
	 

	 
		2.1 Revolving Loans.
	 

	 
		(a) Subject to and upon the terms and
		conditions contained herein, each Lender severally (and not jointly) agrees to
		make its Pro Rata Share of Revolving Loans to each Borrower from time to time
		in amounts requested by such Borrower (or Administrative Borrower on behalf of
		such Borrower) up to the amount outstanding at any time equal to the Borrowing
		Base.
	 

	 
		(b) Agent may, in its discretion, from time to time,
		upon not less than five (5) days prior notice to Administrative Borrower,
		reduce the lending formula with respect to Eligible Accounts. The amount of any
		decrease in the lending formulas shall have a reasonable relationship to the
		event, condition or circumstance which is the basis for such decrease as
		determined by Agent in good faith. In determining whether to reduce the lending
		formula, Agent may consider events, conditions, contingencies or risks which
		are also considered in determining Eligible Accounts, or in establishing
		Reserves.
	 

	 
		(c) Except in Agent’s discretion, with
		the consent of all Lenders, or as otherwise provided herein, (i) the aggregate
		amount of the Loans, and the Letter of Credit
	 

	 
		 
	 

	 
		 
	 

	 
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		Accommodations outstanding at any time shall
		not exceed the Maximum Credit, (ii) the aggregate principal amount of the
		Revolving Loans outstanding at any time shall not exceed the Borrowing Base,
		(iii) the aggregate outstanding amount of Letter of Credit Accommodations and
		LC Advances shall not exceed the Letter of Credit Facility Limit, then in
		effect, and (iv) the aggregate amount of the Revolving Loans, LC Advances, and
		Letter of Credit Accommodations outstanding at any time not exceed the
		Aggregate Obligation Limit (without giving effect to Reserves established in
		respect of outstanding Letter of Credit Accommodations and LC Advances pursuant
		to Section 2.2 hereof).
	 

	 
		(d) In the event that the aggregate
		principal amount of the Revolving Loans outstanding to Borrowers exceeds the
		Borrowing Base then in effect, or the aggregate amount of the outstanding
		Letter of Credit Accommodations and LC Advances exceeds the Letter of Credit
		Facility Limit then in effect or the aggregate amount of the Revolving Loans,
		LC Advances and Letter of Credit Accommodations outstanding at any time exceeds
		the Aggregate Obligation Limit then in effect (without giving effect to
		Reserves established in respect of outstanding Letter of Credit Accommodations
		and LC Advances pursuant to Section 2.2 hereof), such event shall not
		limit, waive or otherwise affect any rights of Agent or Lenders in such
		circumstances or on any future occasions and Borrowers shall, upon demand by
		Agent, which may be made at any time or from time to time, immediately repay to
		Agent the entire amount of any such excess(es) for which payment is
		demanded.
	 

	 
		2.2 Letter of Credit Accommodations and LC
		Advances.
	 

	 
		(a) Subject to and upon the terms and
		conditions contained herein, at the request of a Borrower (or Administrative
		Borrower on behalf of such Borrower), Agent agrees, for the ratable risk of
		each Lender according to its Pro Rata Share, to provide or arrange for Letter
		of Credit Accommodations for the account of such Borrower containing terms and
		conditions acceptable to Agent and the issuer thereof . Any payments made by or
		on behalf of Agent or any Lender to any issuer thereof and/or related parties
		in connection with the Letter of Credit Accommodations provided to or for the
		benefit of a Borrower shall constitute LC Advances to such Borrower pursuant to
		this Section 2 (or Revolving Loans or Special Agent Advances, as the case may
		be).
	 

	 
		(b) In addition to any charges, fees or
		expenses charged by any bank or issuer in connection with the Letter of Credit
		Accommodations, Borrowers shall pay to Agent, for the benefit of Lenders, a
		letter of credit fee at a rate equal to one (1%) percent per annum, on the
		daily outstanding balance of the Letter of Credit Accommodations for the
		immediately preceding month (or part thereof), payable in arrears as of the
		first day of each succeeding month, except that Agent may, and upon the written
		direction of Required Lenders shall, require Borrowers to pay to Agent for the
		ratable benefit of Lenders such letter of credit fee, at a rate equal to
		three (3%) percent per annum on such daily outstanding balance for: (i)
		the period from and after the date of termination hereof until Agent and
		Lenders have received full and final payment of all Obligations
		(notwithstanding entry of a judgment against any Borrower) and (ii) the period
		from and after the date of the occurrence of an Event of Default for so long as
		such Event of Default is continuing as determined by Agent. Such letter of
		credit fee shall be calculated on the basis of a three hundred sixty (360) day
		year and actual days elapsed and the obligation of Borrowers to pay such fee
		shall survive the termination of this Agreement.
	 

	 
		 
	 

	 
		 
	 

	 
		26
	 

	 
		 
	 

	 
	 

	 

	 
		(c) The Borrower requesting such Letter of
		Credit Accommodation (or Administrative Borrower on behalf of such Borrower)
		shall give Agent two (2) Business Days’ prior written notice of such
		Borrower’s request for the issuance of a Letter of Credit Accommodation.
		Such notice shall be irrevocable and shall specify the original face amount of
		the Letter of Credit Accommodation requested, the effective date (which date
		shall be a Business Day and in no event shall be a date less than ten (10) days
		prior to the end of the then current term of this Agreement) of issuance of
		such requested Letter of Credit Accommodation, whether such Letter of Credit
		Accommodations may be drawn in a single or in partial draws, the date on which
		such requested Letter of Credit Accommodation is to expire (which date shall be
		a Business Day), the purpose for which such Letter of Credit Accommodation is
		to be issued, and the beneficiary of the requested Letter of Credit
		Accommodation. The Borrower requesting the Letter of Credit Accommodation (or
		Administrative Borrower on behalf of such Borrower) shall attach to such notice
		the proposed terms of the Letter of Credit Accommodation. 
	 

	 
		(d) In addition to being subject to the
		satisfaction of the applicable conditions precedent contained in Section 4
		hereof and the other terms and conditions contained herein, no Letter of Credit
		Accommodations shall be available unless each of the following conditions
		precedent have been satisfied in a manner satisfactory to Agent: (i) the
		Borrower requesting such Letter of Credit Accommodation (or Administrative
		Borrower on behalf of such Borrower) shall have delivered to the proposed
		issuer of such Letter of Credit Accommodation at such times and in such manner
		as such proposed issuer may require, an application, in form and substance
		satisfactory to such proposed issuer and Agent, for the issuance of the Letter
		of Credit Accommodation and such other documents as may be required pursuant to
		the terms thereof, and the form and terms of the proposed Letter of Credit
		Accommodation shall be satisfactory to Agent and such proposed issuer, (ii) as
		of the date of issuance, no order of any court, arbitrator or other
		Governmental Authority shall purport by its terms to enjoin or restrain money
		center banks generally from issuing letters of credit of the type and in the
		amount of the proposed Letter of Credit Accommodation, and no law, rule or
		regulation applicable to money center banks generally and no request or
		directive (whether or not having the force of law) from any Governmental
		Authority with jurisdiction over money center banks generally shall prohibit,
		or request that the proposed issuer of such Letter of Credit Accommodation
		refrain from, the issuance of letters of credit generally or the issuance of
		such Letters of Credit Accommodation; and (iii) the Letter of Credit
		Availability, on the date of the proposed issuance of any Letter of Credit
		Accommodations, shall be equal to or greater than an amount equal to one
		hundred (100%) percent of the face amount thereof and all other commitments and
		obligations made or incurred by Agent with respect thereto. Effective on the
		issuance of each Letter of Credit Accommodation or LC Advance, a Reserve shall
		be established in the applicable amount set forth in Section
		2.2(d)(iii).
	 

	 
		(e) Except in Agent’s discretion, with
		the consent of all Lenders, the amount of all outstanding Letter of Credit
		Accommodations, all LC Advances and all other commitments and obligations made
		or incurred by Agent or any Lender in connection therewith shall not at any
		time exceed the Letter of Credit Facility Limit then in effect. 
	 

	 
		(f) Borrowers and Guarantors shall indemnify
		and hold Agent and Lenders harmless from and against any and all losses,
		claims, damages, liabilities, costs and expenses which Agent or any Lender may
		suffer or incur in connection with any Letter of Credit
	 

	 
		 
	 

	 
		27
	 

	 
		 
	 

	 
	 

	 

	 
		Accommodations and any documents, drafts or
		acceptances relating thereto, including any losses, claims, damages,
		liabilities, costs and expenses due to any action taken by any issuer or
		correspondent with respect to any Letter of Credit Accommodation, except for
		such losses, claims, damages, liabilities, costs or expenses that are a direct
		result of the gross negligence or wilful misconduct of Agent or any Lender as
		determined pursuant to a final non-appealable order of a court of competent
		jurisdiction. Each Borrower and Guarantor assumes all risks with respect to the
		acts or omissions of the drawer under or beneficiary of any Letter of Credit
		Accommodation and for such purposes the drawer or beneficiary shall be deemed
		such Borrower’s agent. Each Borrower and Guarantor assumes all risks for,
		and agrees to pay, all foreign, Federal, State and local taxes, duties and
		levies relating to any goods subject to any Letter of Credit Accommodations or
		any documents, drafts or acceptances thereunder. Each Borrower and Guarantor
		hereby releases and holds Agent and Lenders harmless from and against any acts,
		waivers, errors, delays or omissions, whether caused by any Borrower,
		Guarantor, by any issuer or correspondent or otherwise with respect to or
		relating to any Letter of Credit Accommodation, except for the gross negligence
		or wilful misconduct of Agent or any Lender as determined pursuant to a final,
		non-appealable order of a court of competent jurisdiction. The provisions of
		this Section 2.2(f) shall survive the payment of Obligations and the
		termination of this Agreement.
	 

	 
		(g) Each Borrower and Guarantor hereby
		irrevocably authorizes and directs any issuer of a Letter of Credit
		Accommodation to name such Borrower or Guarantor as the account party therein
		and to deliver to Agent all instruments, documents and other writings and
		property received by issuer pursuant to the Letter of Credit Accommodations and
		to accept and rely upon Agent’s instructions and agreements with respect
		to all matters arising in connection with the Letter of Credit Accommodations
		or the applications therefor. Nothing contained herein shall be deemed or
		construed to grant any Borrower or Guarantor any right or authority to pledge
		the credit of Agent or any Lender in any manner. Agent and Lenders shall have
		no liability of any kind with respect to any Letter of Credit Accommodation
		provided by an issuer other than Agent or any Lender unless Agent has duly
		executed and delivered to such issuer the application or a guarantee or
		indemnification in writing with respect to such Letter of Credit Accommodation.
		Borrowers and Guarantors shall be bound by any reasonable interpretation made
		in good faith by Agent, or any other issuer or correspondent under or in
		connection with any Letter of Credit Accommodation or any documents, drafts or
		acceptances thereunder, notwithstanding that such interpretation may be
		inconsistent with any instructions of any Borrower or Guarantor. 
	 

	 
		(h) So long as no Event of Default exists or
		has occurred and is continuing, a Borrower may (i) approve or resolve any
		questions of non-compliance of documents, (ii) give any instructions as to
		acceptance or rejection of any documents or goods, (iii) execute any and all
		applications for steamship or airway guaranties, indemnities or delivery
		orders, and (iv) with Agent’s consent, grant any extensions of the
		maturity of, time of payment for, or time of presentation of, any drafts,
		acceptances, or documents, and agree to any amendments, renewals, extensions,
		modifications, changes or cancellations of any of the terms or conditions of
		any of the applications, Letter of Credit Accommodations, or documents, drafts
		or acceptances thereunder or any letters of credit included in the
		Collateral.
	 

	 
		 
	 

	 
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		(i) At any time an Event of Default exists
		or has occurred and is continuing, Agent shall have the right and authority to,
		and Borrowers shall not, without the prior written consent of Agent, (i)
		approve or resolve any questions of non-compliance of documents, (ii) give any
		instructions as to acceptance or rejection of any documents or goods, (iii)
		execute any and all applications for steamship or airway guaranties,
		indemnities or delivery orders, (iv) grant any extensions of the maturity of,
		time of payments for, or time of presentation of, any drafts, acceptances, or
		documents, and (v) agree to any amendments, renewals, extensions,
		modifications, changes or cancellations of any of the terms or conditions of
		any of the applications, Letter of Credit Accommodations, or documents, drafts
		or acceptances thereunder or any letters of credit included in the Collateral.
		Agent may take such actions either in its own name or in any Borrower’s
		name.
	 

	 
		(j) Any rights, remedies, duties or
		obligations granted or undertaken by any Borrower or Guarantor to any issuer or
		correspondent in any application for any Letter of Credit Accommodation, or any
		other agreement in favor of any issuer or correspondent relating to any Letter
		of Credit Accommodation, shall be deemed to have been granted or undertaken by
		such Borrower or Guarantor to Agent for the ratable benefit of Lenders. Any
		duties or obligations undertaken by Agent to any issuer or correspondent in any
		application for any Letter of Credit Accommodation, or any other agreement by
		Agent in favor of any issuer or correspondent to the extent relating to any
		Letter of Credit Accommodation, shall be deemed to have been undertaken by
		Borrowers and Guarantors to Agent for the ratable benefit of Lenders and to
		apply in all respects to Borrowers and Guarantors.
	 

	 
		(k) Immediately upon the issuance or
		amendment of any Letter of Credit Accommodation, each Lender shall be deemed to
		have irrevocably and unconditionally purchased and received, without recourse
		or warranty, an undivided interest and participation to the extent of such
		Lender’s Pro Rata Share of the liability with respect to such Letter of
		Credit Accommodation (including, without limitation, all Obligations with
		respect thereto).
	 

	 
		(l) Each Borrower is irrevocably and
		unconditionally obligated, without presentment, demand or protest, to pay to
		Agent any amounts paid by an issuer of a Letter of Credit Accommodation with
		respect to such Letter of Credit Accommodation (whether through the borrowing
		of LC Advances in accordance with Section 2.2(a) or otherwise). In the event
		that any Borrower fails to pay Agent on the date of any payment under a Letter
		of Credit Accommodation in an amount equal to the amount of such payment, such
		Borrower shall be deemed to have automatically requested an LC Advance in such
		amount and Agent shall promptly notify each Lender of the unreimbursed amount
		of such payment and each Lender agrees, upon one (1) Business Day’s
		notice, to fund to Agent the purchase of its participation in the LC Advance in
		an amount equal to its Pro Rata Share. The obligation of each Lender to deliver
		to Agent an amount equal to its respective participation pursuant to the
		foregoing sentence is absolute and unconditional and such remittance shall be
		made notwithstanding the occurrence or continuance of any Event of Default, the
		failure to satisfy any other condition set forth in Section 4 or any other
		event or circumstance. If such amount is not made available by a Lender when
		due, Agent shall be entitled to recover such amount on demand from such Lender
		with interest thereon, for each day from the date such amount was due until the
		date such amount is paid to Agent at the interest rate provided for in Section
		6.10(d) hereof. To the extent that the 
	 

	 
		 
	 

	 
		 
	 

	 
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		making of a LC Advance would cause the
		Letter of Credit Facility Limit to be exceeded, Borrower shall be deemed to
		have requested a Revolving Loan, in the same amount.
	 

	 
		2.3 Joint and Several Liability. Each Borrower shall be jointly and severally liable
		for all amounts due to Agent and Lenders under this Agreement and the other
		Financing Agreements, regardless of which Borrower actually receives the Loans
		or Letter of Credit Accommodations hereunder or the amount of such Loans
		received or the manner in which Agent or any Lender accounts for such Loans,
		Letter of Credit Accommodations or other extensions of credit on its books and
		records. All references herein or in any of the other Financing Agreements to
		any of the obligations of Borrowers to make any payment hereunder or thereunder
		shall constitute joint and several obligations of Borrowers. The Obligations
		with respect to Loans made to a Borrower, and the Obligations arising as a
		result of the joint and several liability of a Borrower hereunder, with respect
		to Loans made to the other Borrower, shall be separate and distinct
		obligations, but all such other Obligations shall be primary obligations of all
		Borrowers. The Obligations arising as a result of the joint and several
		liability of a Borrower hereunder with respect to Loans, Letter of Credit
		Accommodations or other extensions of credit made to the other Borrower shall,
		to the fullest extent permitted by law, be unconditional irrespective of (a)
		the validity or enforceability, avoidance or subordination of the Obligations
		of the other Borrower or of any promissory note or other document evidencing
		all or any part of the Obligations of the other Borrower, (b) the absence of
		any attempt to collect the Obligations from the other Borrower, any Obligor or
		any other security therefor, or the absence of any other action to enforce the
		same, (c) the waiver, consent, extension, forbearance or granting of any
		indulgence by Agent or any Lender with respect to any provisions of any
		instrument evidencing the Obligations of the other Borrower, or any part
		thereof, or any other agreement now or hereafter executed by the other Borrower
		and delivered to Agent or any Lender, (d) the failure by Agent or any Lender to
		take any steps to perfect and maintain its security interest in, or to preserve
		its rights and maintain its security or collateral for the Obligations of the
		other Borrower, (e) the election of Agent and Lenders in any proceeding
		instituted under the Bankruptcy Code, of the application of Section 1111(b)(2)
		of the Bankruptcy Code, (f) the disallowance of all or any portion of the
		claim(s) of Agent or any Lender for the repayment of the Obligations of the
		other Borrower under Section 502 of the Bankruptcy Code, or (g) any other
		circumstances which might constitute a legal or equitable discharge or defense
		of an Obligor or of the other Borrower. With respect to the Obligations arising
		as a result of the joint and several liability of a Borrower hereunder with
		respect to Loans, Letter of Credit Accommodations or other extensions of credit
		made to the other Borrower hereunder, each Borrower waives, until the
		Obligations shall have been paid in full and this Agreement shall have been
		terminated, any right to enforce any right of subrogation or any remedy which
		Agent or any Lender now has or may hereafter have against any Borrower or
		Obligor and any benefit of, and any right to participate in, any security or
		collateral given to Agent or any Lender. At any time an Event of Default exists
		or has occurred and is continuing, Agent may proceed directly and at once,
		without notice, against any Borrower to collect and recover the full amount, or
		any portion of the Obligations, without first proceeding against the other
		Borrower or any other Person, or against any security or collateral for the
		Obligations. Each Borrower consents and agrees that Agent and Lenders shall be
		under no obligation to marshal any assets in favor of Borrower(s) or against or
		in payment of any or all of the Obligations. 
	 

	 
		 
	 

	 
		 
	 

	 
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		2.4 Commitments. The
		aggregate amount of each Lender’s Pro Rata Share of the Revolving Loans,
		LC Advances and Letter of Credit Accommodations shall not exceed the amount of
		such Lender’s Commitment, as the same may from time to time be amended in
		accordance with the provisions hereof.
	 

	 
		SECTION 3. INTEREST AND FEES
	 

	 
		3.1 Interest.

	 

	 
		(a) Borrowers shall pay to Agent, for the
		benefit of Lenders, interest on the outstanding principal amount of the
		Revolving Loans and LC Advances at the Interest Rate. All interest accruing
		hereunder on and after the date of any Event of Default or termination hereof
		shall be payable on demand.
	 

	 
		(b) Each Borrower (or Administrative
		Borrower on behalf of such Borrower) may from time to time request Eurodollar
		Rate Loans or may request that Prime Rate Loans be converted to Eurodollar Rate
		Loans or that any existing Eurodollar Rate Loans continue for an additional
		Interest Period. Such request from a Borrower (or Administrative Borrower on
		behalf of such Borrower) shall specify the amount of the Eurodollar Rate Loans
		or the amount of the Prime Rate Loans to be converted to Eurodollar Rate Loans
		or the amount of the Eurodollar Rate Loans to be continued (subject to the
		limits set forth below) and the Interest Period to be applicable to such
		Eurodollar Rate Loans. Subject to the terms and conditions contained herein,
		three (3) Business Days after receipt by Agent of such a request from a
		Borrower (or Administrative Borrower on behalf of such Borrower), such
		Eurodollar Rate Loans shall be made or Prime Rate Loans shall be converted to
		Eurodollar Rate Loans or such Eurodollar Rate Loans shall continue, as the case
		may be, provided, that, (i) no Default or Event of Default shall exist or have
		occurred and be continuing, (ii) no party hereto shall have sent any notice of
		termination of this Agreement, (iii) such Borrower (or Administrative Borrower
		on behalf of such Borrower) shall have complied with such customary procedures
		as are established by Agent and specified by Agent to Administrative Borrower
		from time to time for requests by Borrowers for Eurodollar Rate Loans, (iv) no
		more than four (4) Interest Periods may be in effect at any one time, (v) the
		aggregate amount of the Eurodollar Rate Loans must be in an amount not less
		than $10,000,000 or an integral multiple of $1,000,000 in excess thereof, (vi)
		the maximum amount of the Eurodollar Rate Loans in the aggregate at any time
		requested by Borrowers shall not exceed the amount equal to eighty (80%)
		percent of the lowest principal amount of the Revolving Loans which it is
		anticipated will be outstanding during the applicable Interest Period, in each
		case as determined by Agent in good faith (but with no obligation of Agent or
		Lenders to make such Revolving Loans), and (vii) Agent and each Lender shall
		have determined that the Interest Period or Adjusted Eurodollar Rate is
		available to Agent and such Lender and can be readily determined as of the date
		of the request for such Eurodollar Rate Loan by such Borrower. Any request by
		or on behalf of a Borrower for Eurodollar Rate Loans or to convert Prime Rate
		Loans to Eurodollar Rate Loans or to continue any existing Eurodollar Rate
		Loans shall be irrevocable. Notwithstanding anything to the contrary contained
		herein, Agent and Lenders shall not be required to purchase United States
		Dollar deposits in the London interbank market or other applicable Eurodollar
		Rate market to fund any Eurodollar Rate Loans, but the provisions hereof shall
		be deemed to apply as if Agent and Lenders had purchased such deposits to fund
		the Eurodollar Rate Loans.
	 

	 
		 
	 

	 
		 
	 

	 
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		(c) Any Eurodollar Rate Loans shall
		automatically convert to Prime Rate Loans upon the last day of the applicable
		Interest Period, unless Agent has received and approved a request to continue
		such Eurodollar Rate Loan at least three (3) Business Days prior to such last
		day in accordance with the terms hereof. Any Eurodollar Rate Loans shall, at
		Agent’s option, upon notice by Agent to Parent, be subsequently converted
		to Prime Rate Loans in the event that this Agreement shall terminate or not be
		renewed. Borrowers shall pay to Agent, for the benefit of Lenders, upon demand
		by Agent (or Agent may, at its option, charge any loan account of any Borrower)
		any amounts required to compensate any Lender or Participant for any loss
		(including loss of anticipated profits), cost or expense incurred by such
		person, as a result of the conversion of Eurodollar Rate Loans to Prime Rate
		Loans pursuant to any of the foregoing.
	 

	 
		(d) Interest shall be payable by Borrowers
		to Agent, for the account of Lenders, monthly in arrears not later than the
		first day of each calendar month and shall be calculated on the basis of a
		three hundred sixty (360) day year and actual days elapsed. The interest rate
		on non-contingent Obligations (other than Eurodollar Rate Loans) shall increase
		or decrease by an amount equal to each increase or decrease in the Prime Rate
		effective on the first day of the month after any change in such Prime Rate is
		announced based on the Prime Rate in effect on the last day of the month in
		which any such change occurs. In no event shall charges constituting interest
		payable by Borrowers to Agent and Lenders exceed the maximum amount or the rate
		permitted under any applicable law or regulation, and if any such part or
		provision of this Agreement is in contravention of any such law or regulation,
		such part or provision shall be deemed amended to conform thereto.
	 

	 
		3.2 Fees. 
	 

	 
		(a) Borrowers shall pay to Agent, for the
		account of Lenders, monthly an unused line fee at a rate equal to one-half of
		one (.50%) percent per annum calculated upon the amount by which the Maximum
		Credit exceeds the average daily principal balance of the outstanding Loans and
		Letter of Credit Accommodations during the immediately preceding month (or part
		thereof) while this Agreement is in effect and for so long thereafter as any of
		the Obligations are outstanding, which fee shall be payable on the first day of
		each month in arrears. 
	 

	 
		(b) Borrowers agree to pay to Agent the
		other fees and amounts set forth in the Fee Letter in the amounts and at the
		times specified therein.
	 

	 
		3.3 Changes in Laws and Increased Costs of Loans.

	 

	 
		(a) If after the date hereof, either (i) any
		change in, or in the interpretation of, any law or regulation is introduced,
		including, without limitation, with respect to reserve requirements, applicable
		to Lender or any banking or financial institution from whom any Lender borrows
		funds or obtains credit (a “Funding Bank”), or (ii) a Funding Bank or
		any Lender complies with any future guideline or request from any central bank
		or other Governmental Authority or (iii) a Funding Bank or any Lender
		determines that the adoption of any applicable law, rule or regulation
		regarding capital adequacy, or any change therein, or any change in the
		interpretation or administration thereof by any Governmental Authority, central
		bank or comparable agency charged with the interpretation or administration
		thereof has or 
	 

	 
		 
	 

	 
		 
	 

	 
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		would have the effect described below, or a
		Funding Bank or any Lender complies with any request or directive regarding
		capital adequacy (whether or not having the force of law) of any such
		authority, central bank or comparable agency, and in the case of any event set
		forth in this clause (iii), such adoption, change or compliance has or would
		have the direct or indirect effect of reducing the rate of return on any
		Lender’s capital as a consequence of its obligations hereunder to a level
		below that which Lender could have achieved but for such adoption, change or
		compliance (taking into consideration the Funding Bank’s or Lender’s
		policies with respect to capital adequacy) by an amount deemed by such Lender
		to be material, and the result of any of the foregoing events described in
		clauses (i), (ii) or (iii) is or results in an increase in the cost to any
		Lender of funding or maintaining the Loans, the Letter of Credit Accommodations
		or its Commitment, then Borrowers and Guarantors shall from time to time upon
		demand by Agent pay to Agent additional amounts sufficient to indemnify Lenders
		against such increased cost on an after-tax basis (after taking into account
		applicable deductions and credits in respect of the amount indemnified). A
		certificate as to the amount of such increased cost shall be submitted to
		Administrative Borrower by Agent and shall be conclusive, absent manifest
		error.
	 

	 
		(b) If prior to the first day of any
		Interest Period, (i) Agent shall have determined in good faith (which
		determination shall be conclusive and binding upon Borrowers and Guarantors)
		that, by reason of circumstances affecting the relevant market, adequate and
		reasonable means do not exist for ascertaining the Eurodollar Rate for such
		Interest Period, (ii) Agent has received notice from the Required Lenders that
		the Eurodollar Rate determined or to be determined for such Interest Period
		will not adequately and fairly reflect the cost to Lenders of making or
		maintaining Eurodollar Rate Loans during such Interest Period, or (iii) Dollar
		deposits in the principal amounts of the Eurodollar Rate Loans to which such
		Interest Period is to be applicable are not generally available in the London
		interbank market, Agent shall give telecopy or telephonic notice thereof to
		Administrative Borrower as soon as practicable thereafter, and will also give
		prompt written notice to Administrative Borrower when such conditions no longer
		exist. If such notice is given (A) any Eurodollar Rate Loans requested to be
		made on the first day of such Interest Period shall be made as Prime Rate
		Loans, (B) any Loans that were to have been converted on the first day of such
		Interest Period to or continued as Eurodollar Rate Loans shall be converted to
		or continued as Prime Rate Loans and (C) each outstanding Eurodollar Rate Loan
		shall be converted, on the last day of the then-current Interest Period
		thereof, to Prime Rate Loans. Until such notice has been withdrawn by Agent, no
		further Eurodollar Rate Loans shall be made or continued as such, nor shall any
		Borrower (or Administrative Borrower on behalf of any Borrower) have the right
		to convert Prime Rate Loans to Eurodollar Rate Loans.
	 

	 
		(c) Notwithstanding any other provision
		herein, if the adoption of or any change in any law, treaty, rule or regulation
		or final, non-appealable determination of an arbitrator or a court or other
		Governmental Authority or in the interpretation or application thereof
		occurring after the date hereof shall make it unlawful for Agent or any Lender
		to make or maintain Eurodollar Rate Loans as contemplated by this Agreement,
		(i) Agent or such Lender shall promptly give written notice of such
		circumstances to Administrative Borrower (which notice shall be withdrawn
		whenever such circumstances no longer exist), (ii) the commitment of such
		Lender hereunder to make Eurodollar Rate Loans, continue Eurodollar Rate Loans
		as such and convert Prime Rate Loans to Eurodollar Rate Loans shall forthwith
		be canceled and, until such time as it shall no longer be unlawful for such
		Lender to make or maintain Eurodollar Rate 
	 

	 
		 
	 

	 
		 
	 

	 
		33
	 

	 
		 
	 

	 
	 

	 

	 
		Loans, such Lender shall then have a
		commitment only to make a Prime Rate Loan when a Eurodollar Rate Loan is
		requested and (iii) such Lender’s Loans then outstanding as Eurodollar
		Rate Loans, if any, shall be converted automatically to Prime Rate Loans on the
		respective last days of the then current Interest Periods with respect to such
		Loans or within such earlier period as required by law. If any such conversion
		of a Eurodollar Rate Loan occurs on a day which is not the last day of the then
		current Interest Period with respect thereto, Borrowers and Guarantors shall
		pay to such Lender such amounts, if any, as may be required pursuant to Section
		3.3(d) hereof
	 

	 
		(d) Borrowers and Guarantors shall indemnify
		Agent and each Lender and to hold Agent and each Lender harmless from any loss
		or expense which Agent or such Lender may sustain or incur as a consequence of
		(i) default by Borrower in making a borrowing of, conversion into or extension
		of Eurodollar Rate Loans after such Borrower (or Administrative Borrower on
		behalf of such Borrower) has given a notice requesting the same in accordance
		with the provisions of this Loan Agreement, (ii) default by any Borrower in
		making any prepayment of a Eurodollar Rate Loan after such Borrower has given a
		notice thereof in accordance with the provisions of this Agreement, and (iii)
		the making of a prepayment of Eurodollar Rate Loans on a day which is not the
		last day of an Interest Period with respect thereto. With respect to Eurodollar
		Rate Loans, such indemnification may include an amount equal to the excess, if
		any, of (A) the amount of interest which would have accrued on the amount so
		prepaid, or not so borrowed, converted or extended, for the period from the
		date of such prepayment or of such failure to borrow, convert or extend to the
		last day of the applicable Interest Period (or, in the case of a failure to
		borrow, convert or extend, the Interest Period that would have commenced on the
		date of such failure) in each case at the applicable rate of interest for such
		Eurodollar Rate Loans provided for herein over (B) the amount of interest (as
		determined by such Agent or such Lender) which would have accrued to Agent or
		such Lender on such amount by placing such amount on deposit for a comparable
		period with leading banks in the interbank Eurodollar market. This covenant
		shall survive the termination or non-renewal of this Loan Agreement and the
		payment of the Obligations.
	 

	 
		SECTION 4. CONDITIONS
		PRECEDENT
	 

	 
		4.1 Conditions Precedent to Initial Loans and Letter of
		Credit Accommodations. Each of the
		following is a condition precedent to Agent and Lenders making the initial
		Loans and providing the initial Letter of Credit Accommodations
		hereunder:
	 

	 
		(a) Agent shall have received, in form and
		substance satisfactory to Agent, all releases, terminations and such other
		documents as Agent may request to evidence and effectuate the (i) termination
		by Existing Senior Noteholder Collateral Agent and Existing Senior Noteholders
		of their financing arrangements with Borrowers and Guarantors under the
		Existing Senior Noteholder Agreements (other than the obligations under the
		Warrants, certain equity registration rights and the obligations set forth in
		Section 8.03 of the Existing Senior Note Indenture (as in effect on the date
		hereof), including the obligation to redeem the Existing Senior Secured Notes
		in accordance with the Existing Senior Note Indenture; provided, that Borrowers
		shall have or shall have caused to be deposited with the Trustee under the
		Existing Senior Note Indenture the full amount of necessary to redeem all of
		the Existing Senior Secured Notes) and the termination and release by it or
		them, as the case may be, of any interest in and to any assets 
	 

	 
		 
	 

	 
		 
	 

	 
		34
	 

	 
		 
	 

	 
	 

	 

	 
		and properties of each Borrower and
		Guarantor, duly authorized, executed and delivered by it or each of them,
		including, but not limited to, (A) UCC termination statements for all UCC
		financing statements previously filed by it or any of them or their
		predecessors, as secured party and any Borrower or Guarantor, as debtor; and
		(B) satisfactions and discharges of any mortgages, deeds of trust or deeds to
		secure debt by any Borrower or Guarantor in favor of it or any of them, in form
		acceptable for recording with the appropriate Governmental Authority, or (ii)
		assignment of the Existing Senior Noteholder Debt or security interests in
		favor of them to Noteholder Collateral Agent; 
	 

	 
		(b) Agent shall have received, in form and
		substance satisfactory to Agent, all releases, terminations and such other
		documents as Agent may request to evidence and effectuate the termination by
		Existing Third Priority Collateral Agent and Existing Third Priority
		Noteholders of their respective financing arrangements with Borrowers and
		Guarantors under the Existing Third Priority Noteholder Agreements (other than
		the obligations under the Warrants and certain equity registration rights) and
		the termination and release by it or them, as the case may be, of any interest
		in and to any assets and properties of each Borrower and Guarantor, duly
		authorized, executed and delivered by it or each of them, including, but not
		limited to, (i) UCC termination statements for all UCC financing statements
		previously filed by it or any of them or their predecessors, as secured party
		and any Borrower or Guarantor, as debtor; and (ii) satisfactions and discharges
		of any mortgages, deeds of trust or deeds to secure debt by any Borrower or
		Guarantor in favor of it or any of them, in form acceptable for recording with
		the appropriate Governmental Authority; 
	 

	 
		(c) Agent shall have received, in form and
		substance satisfactory to Agent, all releases, terminations and such other
		documents as Agent may request to evidence and effectuate the termination by
		Airlie Opportunity Master Fund Ltd. of its financing arrangements with Parent
		with respect to the Existing Subordinated Note; 
	 

	 
		(d) Agent shall have received, in form and
		substance satisfactory to Agent, a letter agreement between Wachovia and Junior
		Participants, providing for among other things the termination of the Junior
		Participation Agreement, which letter shall be duly executed and delivered by
		Junior Participants;
	 

	 
		(e) no motion, action or proceeding shall be
		pending against any Borrower or Guarantor (or their predecessors) by any
		creditor or other party-in-interest in the Bankruptcy Court or in any other
		court of competent jurisdiction which would if successful have a Material
		Adverse Effect;
	 

	 
		(f) all requisite corporate action and
		proceedings in connection with this Agreement and the other Financing
		Agreements shall be satisfactory in form and substance to Agent, and Agent
		shall have received all information and copies of all documents, including
		records of requisite corporate action and proceedings which Agent may have
		requested in connection therewith, such documents where requested by Agent or
		its counsel to be certified by appropriate corporate officers or Governmental
		Authority (and including a copy of the certificate of incorporation of each
		Borrower and Guarantor certified by the Secretary of such Borrower or
		Guarantor, as the case may be, which shall set forth the same complete
		corporate name of such Borrower or Guarantor as is set forth herein and such
		document as shall set forth the 
	 

	 
		 
	 

	 
		 
	 

	 
		35
	 

	 
		 
	 

	 
	 

	 

	 
		organizational identification number of each
		Borrower or Guarantor, if one is issued in its jurisdiction of
		incorporation);
	 

	 
		(g) no material adverse change shall have
		occurred in the assets, business or prospects of Borrowers since the date of
		Agent’s latest field examination (not including for this purpose the field
		review referred to in clause (g) below) and no change or event shall have
		occurred which would impair the ability of any Borrower or Obligor to perform
		its obligations hereunder or under any of the other Financing Agreements to
		which it is a party or of Agent or any Lender to enforce the Obligations or
		realize upon the Collateral;
	 

	 
		(h) Agent shall have completed a field
		review of the Records and such other information with respect to the Collateral
		as Agent may require to determine the amount of Loans available to Borrowers
		(including, without limitation, or roll-forwards of Accounts in a manner
		satisfactory to Agent, together with such supporting documentation as may be
		necessary or appropriate, and other documents and information that will enable
		Agent to accurately identify and verify the Collateral), the results of which
		in each case shall be satisfactory to Agent, not more than three (3) Business
		Days prior to the date hereof;
	 

	 
		(i) Agent shall have received, in form and
		substance satisfactory to Agent, all consents, waivers, acknowledgments and
		other agreements from third persons which Agent may deem necessary or desirable
		in order to permit, protect and perfect its security interests in and liens
		upon the Collateral or to effectuate the provisions or purposes of this
		Agreement and the other Financing Agreements, including, without limitation,
		Collateral Access Agreements by owners and lessors of leased premises of each
		Borrower and by processors and warehouses at which Collateral is
		located;
	 

	 
		(j) the Excess Availability as determined by
		Agent, as of the date hereof, shall be not less than $20,000,000 after giving
		effect to the outstanding Loans and the Loans to be made in connection with the
		transactions hereunder;
	 

	 
		(k) Agent shall have received, in form and
		substance satisfactory to Agent, Deposit Account Control Agreements by and
		among Agent, each Borrower and Guarantor, as the case may be and each bank
		where such Borrower (or Guarantor) has a deposit account as provided for in
		Section 5.2 hereof, in each case, duly authorized, executed and delivered by
		such bank and Borrower or Guarantor, as the case may be (or Agent shall be the
		bank’s customer with respect to such deposit account as Agent may
		specify);
	 

	 
		(l) Agent shall have received, in form and
		substance satisfactory to Agent, the Intercreditor Agreement, as duly
		authorized, executed and delivered by Noteholder Collateral Agent and
		acknowledged by Borrowers and Guarantors;
	 

	 
		(m) Agent shall have received evidence, in
		form and substance satisfactory to Agent, that Parent has received not less
		than $182,000,000 in immediately available funds (which amount shall include
		any funds deposited with the Trustee under the Existing Senior Note Indenture
		for redemption of the Existing Senior Secured Notes) as the gross proceeds of
		the Senior Secured Notes pursuant to the terms of the Noteholder Agreements, on
		terms and conditions satisfactory to Agent and its counsel; 
	 

	 
		 
	 

	 
		 
	 

	 
		36
	 

	 
		 
	 

	 
	 

	 

	 
		(n) Agent shall have received true, correct
		and complete copies of each of the Noteholder Agreements, which shall each be
		in form and substance satisfactory to Agent;
	 

	 
		(o) Agent shall have received evidence, in
		form and substance satisfactory to Agent, that Agent has a valid perfected
		first priority security interest in all of the Collateral, except as otherwise
		permitted herein;
	 

	 
		(p) Agent shall have received, in form and
		substance satisfactory to Agent, valid and effective endorsements to title
		insurance policies issued by a company and agent acceptable to Agent: (i)
		insuring the priority, amount and sufficiency of the Mortgages, (ii) insuring
		against matters that would be disclosed by surveys and (iii) containing any
		legally available endorsements, assurances or affirmative coverage requested by
		Agent for protection of its interests;
	 

	 
		(q) Agent shall have received copies of the
		Employment Contracts between Parent and each of Domenic Gatto and Nathan
		Schlenker, each of which shall be in form and substances satisfactory to Agent
		and satisfy the requirements of Section 9.20 hereof;
	 

	 
		(r) Agent shall have received evidence of
		insurance and loss payee endorsements required hereunder and under the other
		Financing Agreements, in form and substance satisfactory to Agent, and
		certificates of insurance policies and/or endorsements naming Agent as loss
		payee;
	 

	 
		(s) Agent shall have received, in form and
		substance satisfactory to Agent, such opinion letters of counsel to Borrowers
		and Guarantors with respect to the Financing Agreements and such other matters
		as Agent may request; and
	 

	 
		(t) the other Financing Agreements and all
		instruments and documents hereunder and thereunder shall have been duly
		executed and delivered to Agent, in form and substance satisfactory to
		Agent.
	 

	 
		4.2 Conditions Precedent to All Loans and Letter of Credit
		Accommodations. Each of the following
		is an additional condition precedent to the Loans and/or providing Letter of
		Credit Accommodations to Borrowers, including the initial Loans and Letter of
		Credit Accommodations and any future Loans and Letter of Credit Accommodations:
		
	 

	 
		(a) all representations and warranties
		contained herein and in the other Financing Agreements shall be true and
		correct with the same effect as though such representations and warranties had
		been made on and as of the date of the making of each such Loan or providing
		each such Letter of Credit Accommodation and after giving effect thereto,
		except to the extent that such representations and warranties expressly relate
		solely to an earlier date (in which case such representations and warranties
		shall have been true and accurate on and as of such earlier date);
	 

	 
		(b) no law, regulation, order, judgment or
		decree of any Governmental Authority shall exist, and no action, suit,
		investigation, litigation or proceeding shall be pending or threatened in any
		court or before any arbitrator or Governmental Authority, which (i) purports to
		enjoin, prohibit, restrain or otherwise affect (A) the making of the Loans or
		providing the 
	 

	 
		 
	 

	 
		 
	 

	 
		37
	 

	 
		 
	 

	 
	 

	 

	 
		Letter of Credit Accommodations, or (B) the
		consummation of the transactions contemplated pursuant to the terms hereof or
		the other Financing Agreements or (ii) has or has a reasonable likelihood of
		having a Material Adverse Effect; and
	 

	 
		(c) no Default or Event of Default shall
		exist or have occurred and be continuing on and as of the date of the making of
		such Loan or providing each such Letter of Credit Accommodation and after
		giving effect thereto. 
	 

	 
		SECTION 5. GRANT AND PERFECTION OF
		SECURITY INTEREST
	 

	 
		5.1 Grant of Security Interest. To secure payment and performance of all Obligations,
		each Borrower and Guarantor hereby grants to Agent, for itself and the benefit
		of the other Secured Parties, a continuing security interest in, a lien upon,
		and a right of set off against, and hereby assigns to Agent, for itself and the
		benefit of the other Secured Parties, as security, all personal and real
		property and fixtures, and interests in property and fixtures, of each Borrower
		and Guarantor, whether now owned or hereafter acquired or existing, and
		wherever located (together with all other collateral security for the
		Obligations at any time granted to or held or acquired by Agent or any Lender,
		collectively, the “Collateral”), including:
	 

	 
		(a) all Accounts;
	 

	 
		(b) all general intangibles, including,
		without limitation, all Intellectual Property; 
	 

	 
		(c) all goods, including, without
		limitation, Inventory and Equipment;
	 

	 
		(d) all Real Property and fixtures;
	 

	 
		(e) all chattel paper, including, without
		limitation, all tangible and electronic chattel paper;
	 

	 
		(f) all instruments, including, without
		limitation, all promissory notes;
	 

	 
		(g) all documents;
	 

	 
		(h) all deposit accounts;
	 

	 
		(i) all letters of credit, banker’s
		acceptances and similar instruments and including all letter-of-credit
		rights;
	 

	 
		(j) all supporting obligations and all
		present and future liens, security interests, rights, remedies, title and
		interest in, to and in respect of Receivables and other Collateral, including
		(i) rights and remedies under or relating to guaranties, contracts of
		suretyship, letters of credit and credit and other insurance related to the
		Collateral, (ii) rights of stoppage in transit, replevin, repossession,
		reclamation and other rights and remedies of an unpaid vendor, lienor or
		secured party, (iii) goods described in invoices, documents, contracts or
		instruments with respect to, or otherwise representing or evidencing,
		Receivables or other 
	 

	 
		 
	 

	 
		 
	 

	 
		38
	 

	 
		 
	 

	 
	 

	 

	 
		Collateral, including returned, repossessed
		and reclaimed goods, and (iv) deposits by and property of account debtors or
		other persons securing the obligations of account debtors;
	 

	 
		(k) all (i) investment property (including
		securities, whether certificated or uncertificated, securities accounts,
		security entitlements, commodity contracts or commodity accounts) and (ii)
		monies, credit balances, deposits and other property of any Borrower or
		Guarantor now or hereafter held or received by or in transit to Agent, any
		Lender or its Affiliates or at any other depository or other institution from
		or for the account of any Borrower or Guarantor, whether for safekeeping,
		pledge, custody, transmission, collection or otherwise;
	 

	 
		(l) all commercial tort claims, including,
		without limitation, those identified in the Information Certificate;
	 

	 
		(m) to the extent not otherwise described
		above, all Receivables; 
	 

	 
		(n) all Records; and
	 

	 
		(o) all products and proceeds of the
		foregoing, in any form, including insurance proceeds and all claims against
		third parties for loss or damage to or destruction of or other involuntary
		conversion of any kind or nature of any or all of the other Collateral.
	 

	 
		5.2 Perfection of Security Interests.
	 

	 
		(a) Each Borrower and Guarantor irrevocably
		and unconditionally authorizes Agent (or its agent) to file at any time and
		from time to time such financing statements with respect to the Collateral
		naming Agent or its designee as the secured party and such Borrower or
		Guarantor as debtor, as Agent may require, and including any other information
		with respect to such Borrower or Guarantor or otherwise required by part 5 of
		Article 9 of the Uniform Commercial Code of such jurisdiction as Agent may
		determine, together with any amendment and continuations with respect thereto,
		which authorization shall apply to all financing statements filed on, prior to
		or after the date hereof. Each Borrower and Guarantor hereby ratifies and
		approves all financing statements naming Agent or its designee as secured party
		and such Borrower or Guarantor, as the case may be, as debtor with respect to
		the Collateral (and any amendments with respect to such financing statements)
		filed by or on behalf of Agent prior to the date hereof and ratifies and
		confirms the authorization of Agent to file such financing statements (and
		amendments, if any). Each Borrower and Guarantor hereby authorizes Agent to
		adopt on behalf of such Borrower and Guarantor any symbol required for
		authenticating any electronic filing. In the event that the description of the
		collateral in any financing statement naming Agent or its designee as the
		secured party and any Borrower or Guarantor as debtor includes assets and
		properties of such Borrower or Guarantor that do not at any time constitute
		Collateral, whether hereunder, under any of the other Financing Agreements or
		otherwise, the filing of such financing statement shall nonetheless be deemed
		authorized by such Borrower or Guarantor to the extent of the Collateral
		included in such description and it shall not render the financing statement
		ineffective as to any of the Collateral or otherwise affect the financing
		statement as it applies to any of the Collateral. In no event shall any
		Borrower or Guarantor at any time file, or permit or cause to be filed, any
		correction statement or termination statement with respect to any 
	 

	 
		 
	 

	 
		 
	 

	 
		39
	 

	 
		 
	 

	 
	 

	 

	 
		financing statement (or amendment or
		continuation with respect thereto) naming Agent or its designee as secured
		party and such Borrower or Guarantor as debtor.
	 

	 
		(b) Each Borrower and Guarantor does not
		have any chattel paper (whether tangible or electronic) or instruments as of
		the date hereof, except as set forth in the Information Certificate. In the
		event that any Borrower or Guarantor shall be entitled to or shall receive any
		chattel paper or instrument after the date hereof, Borrowers and Guarantors
		shall promptly notify Agent thereof in writing. Promptly upon the receipt
		thereof by or on behalf of any Borrower or Guarantor (including by any agent or
		representative), such Borrower or Guarantor shall deliver, or cause to be
		delivered to Agent, all tangible chattel paper and instruments that such
		Borrower or Guarantor has or may at any time acquire, accompanied by such
		instruments of transfer or assignment duly executed in blank as Agent may from
		time to time specify, in each case except as Agent may otherwise agree. At
		Agent’s option, each Borrower and Guarantor shall, or Agent may at any
		time on behalf of any Borrower or Guarantor, cause the original of any such
		instrument or chattel paper to be conspicuously marked in a form and manner
		acceptable to Agent with the following legend referring to chattel paper or
		instruments as applicable: “This [chattel paper][instrument] is subject to
		the security interest of Wachovia Bank, National Association, as Agent and any
		sale, transfer, assignment or encumbrance of this [chattel paper][instrument]
		violates the rights of such secured party.”
	 

	 
		(c) In the event that any Borrower or
		Guarantor shall at any time hold or acquire an interest in any electronic
		chattel paper or any “transferable record” (as such term is defined
		in Section 201 of the Federal Electronic Signatures in Global and National
		Commerce Act or in Section 16 of the Uniform Electronic Transactions Act as in
		effect in any relevant jurisdiction), such Borrower or Guarantor shall promptly
		notify Agent thereof in writing. Promptly upon Agent’s request, such
		Borrower or Guarantor shall take, or cause to be taken, such actions as Agent
		may request to give Agent control of such electronic chattel paper under
		Section 9-105 of the UCC and control of such transferable record under Section
		201 of the Federal Electronic Signatures in Global and National Commerce Act
		or, as the case may be, Section 16 of the Uniform Electronic Transactions Act,
		as in effect in such jurisdiction.
	 

	 
		(d) Each Borrower and Guarantor does not
		have any deposit accounts as of the date hereof, except as set forth in the
		Information Certificate. Borrowers and Guarantors shall not, directly or
		indirectly, after the date hereof open, establish or maintain any deposit
		account unless each of the following conditions is satisfied: (i) Agent shall
		have received not less than five (5) Business Days prior written notice of the
		intention of any Borrower or Guarantor to open or establish such account which
		notice shall specify in reasonable detail and specificity acceptable to Agent
		the name of the account, the owner of the account, the name and address of the
		bank at which such account is to be opened or established, the individual at
		such bank with whom such Borrower or Guarantor is dealing and the purpose of
		the account, (ii) the bank where such account is opened or maintained shall be
		acceptable to Agent, and (iii) on or before the opening of such deposit
		account, such Borrower or Guarantor shall as Agent may specify either (A)
		deliver to Agent a Deposit Account Control Agreement with respect to such
		deposit account duly authorized, executed and delivered by such Borrower or
		Guarantor and the bank at which such deposit account is opened and maintained
		or (B) arrange for Agent to become the customer of the bank with respect to the
		deposit account on terms and conditions acceptable to Agent. The terms of this
		subsection (d) shall not apply to deposit accounts 
	 

	 
		 
	 

	 
		 
	 

	 
		40
	 

	 
		 
	 

	 
	 

	 

	 
		specifically and exclusively used for
		payroll, payroll taxes and other employee wage and benefit payments to or for
		the benefit of any Borrower’s or Guarantor’s salaried employees.
		
	 

	 
		(e) No Borrower or Guarantor owns or holds,
		directly or indirectly, beneficially or as record owner or both, any investment
		property, as of the date hereof, or have any investment account, securities
		account, commodity account or other similar account with any bank or other
		financial institution or other securities intermediary or commodity
		intermediary as of the date hereof, in each case except as set forth in the
		Information Certificate.
	 

	 
		(i) In the event that any Borrower or
		Guarantor shall be entitled to or shall at any time after the date hereof hold
		or acquire any certificated securities, such Borrower or Guarantor shall
		promptly endorse, assign and deliver the same to Agent, accompanied by such
		instruments of transfer or assignment duly executed in blank as Agent may from
		time to time specify. If any securities other than the Capital Stock of a
		Subsidiary, now or hereafter acquired by any Borrower or Guarantor are
		uncertificated and are issued to such Borrower or Guarantor or its nominee
		directly by the issuer thereof, such Borrower or Guarantor shall immediately
		notify Agent thereof and shall as Agent may specify, either (A) cause the
		issuer to agree to comply with instructions from Agent as to such securities,
		without further consent of any Borrower or Guarantor or such nominee, or (B)
		arrange for Agent to become the registered owner of the securities. 
	 

	 
		(ii) Borrowers and Guarantors shall not,
		directly or indirectly, after the date hereof open, establish or maintain any
		investment account, securities account, commodity account or any other similar
		account (other than a deposit account) with any securities intermediary or
		commodity intermediary unless each of the following conditions is satisfied:
		(A) Agent shall have received not less than five (5) Business Days prior
		written notice of the intention of such Borrower or Guarantor to open or
		establish such account which notice shall specify in reasonable detail and
		specificity acceptable to Agent the name of the account, the owner of the
		account, the name and address of the securities intermediary or commodity
		intermediary at which such account is to be opened or established, the
		individual at such intermediary with whom such Borrower or Guarantor is dealing
		and the purpose of the account, (B) the securities intermediary or commodity
		intermediary (as the case may be) where such account is opened or maintained
		shall be acceptable to Agent, and (C) on or before the opening of such
		investment account, securities account or other similar account with a
		securities intermediary or commodity intermediary, such Borrower or Guarantor
		shall as Agent may specify either (1) execute and deliver, and cause to be
		executed and delivered to Agent, an Investment Property Control Agreement with
		respect thereto duly authorized, executed and delivered by such Borrower or
		Guarantor and such securities intermediary or commodity intermediary or (2)
		arrange for Agent to become the entitlement holder with respect to such
		investment property on terms and conditions acceptable to Agent.
	 

	 
		(f) Borrowers and Guarantors are not the
		beneficiary or otherwise entitled to any right to payment under any letter of
		credit, banker’s acceptance or similar instrument as of the date hereof,
		except as set forth in the Information Certificate. In the event that any
		Borrower or Guarantor shall be entitled to or shall receive any right to
		payment under any letter of credit, banker’s acceptance or any similar
		instrument, whether as beneficiary thereof or otherwise after the date hereof,
		such Borrower or Guarantor shall promptly notify Agent thereof in writing.
		
	 

	 
		 
	 

	 
		 
	 

	 
		41
	 

	 
		 
	 

	 
	 

	 

	 
		Such Borrower or Guarantor shall
		immediately, as Agent may specify, either (i) deliver, or cause to be delivered
		to Agent, with respect to any such letter of credit, banker’s acceptance
		or similar instrument, the written agreement of the issuer and any other
		nominated person obligated to make any payment in respect thereof (including
		any confirming or negotiating bank), in form and substance satisfactory to
		Agent, consenting to the assignment of the proceeds of the letter of credit to
		Agent by such Borrower or Guarantor and agreeing to make all payments thereon
		directly to Agent or as Agent may otherwise direct or (ii) cause Agent to
		become, at Borrowers’ expense, the transferee beneficiary of the letter of
		credit, banker’s acceptance or similar instrument (as the case may
		be).
	 

	 
		(g) Borrowers and Guarantors do not have any
		commercial tort claims as of the date hereof, except as set forth in the
		Information Certificate. In the event that any Borrower or Guarantor shall at
		any time after the date hereof have any commercial tort claims in excess of
		$1,000,000, such Borrower or Guarantor shall promptly notify Agent thereof in
		writing, which notice shall (i) set forth in reasonable detail the basis for
		and nature of such commercial tort claim and (ii) include the express grant by
		such Borrower or Guarantor to Agent of a security interest in such commercial
		tort claim (and the proceeds thereof). In the event that such notice does not
		include such grant of a security interest, the sending thereof by such Borrower
		or Guarantor to Agent shall be deemed to constitute such grant to Agent. Upon
		the sending of such notice, any commercial tort claim described therein shall
		constitute part of the Collateral and shall be deemed included therein. Without
		limiting the authorization of Agent provided in Section 5.2(a) hereof or
		otherwise arising by the execution by such Borrower or Guarantor of this
		Agreement or any of the other Financing Agreements, Agent is hereby irrevocably
		authorized from time to time and at any time to file such financing statements
		naming Agent or its designee as secured party and such Borrower or Guarantor as
		debtor, or any amendments to any financing statements, covering any such
		commercial tort claim as Collateral. In addition, each Borrower and Guarantor
		shall promptly upon Agent’s request, execute and deliver, or cause to be
		executed and delivered, to Agent such other agreements, documents and
		instruments as Agent may require in connection with such commercial tort
		claim.
	 

	 
		(h) Borrowers and Guarantors do not have any
		goods, documents of title or other Collateral in the custody, control or
		possession of a third party as of the date hereof, except as set forth in the
		Information Certificate and except for goods located in the United States in
		transit to a location of a Borrower or Guarantor permitted herein in the
		ordinary course of business of such Borrower or Guarantor in the possession of
		the carrier transporting such goods. In the event that any goods, documents of
		title (other than in respect of Rolling Stock) or other Collateral are at any
		time after the date hereof in the custody, control or possession of any other
		person not referred to in the Information Certificate or such carriers,
		Borrowers and Guarantors shall promptly notify Agent thereof in writing.
		Promptly upon Agent’s request, Borrowers and Guarantors shall deliver to
		Agent a Collateral Access Agreement duly authorized, executed and delivered by
		such person and the Borrower or Guarantor that is the owner of such
		Collateral.
	 

	 
		(i) Borrowers and Guarantors shall take any
		other actions reasonably requested by Agent from time to time to cause the
		attachment, perfection and first priority of (except to the extent otherwise
		permitted in Section 9.8 hereof), and the ability of Agent to enforce, the
		security interest of Agent in any and all of the Collateral, including, without
		limitation, (i) executing, delivering and, where appropriate, filing financing
		statements and 
	 

	 
		 
	 

	 
		 
	 

	 
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		amendments relating thereto under the UCC or
		other applicable law, to the extent, if any, that any Borrower’s or
		Guarantor’s signature thereon is required therefor, (ii) causing
		Agent’s name to be noted as secured party on any Certificate of Title for
		a titled good if such notation is a condition to attachment, perfection or
		priority of, or ability of Agent to enforce, the security interest of Agent in
		such Collateral, (iii) complying with any provision of any statute, regulation
		or treaty of the United States as to any Collateral if compliance with such
		provision is a condition to attachment, perfection or priority of, or ability
		of Agent to enforce, the security interest of Agent in such Collateral, (iv)
		obtaining the consents and approvals of any Governmental Authority or third
		party, including, without limitation, any consent of any licensor, lessor or
		other person obligated on Collateral, and taking all actions required by any
		earlier versions of the UCC or by other law, as applicable in any relevant
		jurisdiction.
	 

	 
		5.3 Exclusions from Collateral. Notwithstanding anything to the contrary set forth in
		Section 5.1 above, the types or items of Collateral described in such Section
		shall not include:
	 

	 
		(a) any rights or interests in any contract,
		lease, permit, license, charter or license agreement covering real or personal
		property, as such, if under the terms of such contract, lease, permit, license,
		charter or license agreement, or applicable law with respect thereto, the valid
		grant of a security interest or lien therein to Agent and Lenders is prohibited
		and such prohibition has not been or is not waived or the consent of the other
		party to such contract, lease, permit, license, charter or license agreement
		has not been or is not otherwise obtained or under applicable law such
		prohibition cannot be waived; provided, that, the foregoing exclusion shall in
		no way be construed (i) to apply if any such prohibition is unenforceable under
		Sections 9-406, 9-407 or 9-408 of the UCC or other applicable law or (ii) so as
		to limit, impair or otherwise affect Agent’s unconditional continuing
		security interests in and liens upon any rights or interests of such Borrower
		or Guarantor in or to monies due or to become due under any such contract,
		lease, permit, license, charter or license agreement (including any
		Receivables);
	 

	 
		(b) any Equipment which is, or at the time
		of any Borrower’s or Guarantor’s acquisition thereof shall be,
		subject to a purchase money mortgage or other purchase money lien or security
		interest (including Capital Leases) permitted under Section 9.8 hereof if the
		valid grant of a security interest or lien to Lender in such item of Equipment
		is prohibited by the terms of the agreement between such Borrower or Guarantor
		and the holder of such purchase money mortgage or other purchase money lien or
		security interest or under applicable law and such prohibition has not been or
		is not waived, or the consent of the holder of the purchase money mortgage or
		other purchase money lien or security interest has not been or is not otherwise
		obtained, or under applicable law such prohibition cannot be waived;
	 

	 
		(c) all Rolling Stock; and
	 

	 
		(d) all Capital Stock of Parent and its
		Subsidiaries.
	 

	 
		SECTION 6. COLLECTION AND
		ADMINISTRATION
	 

	 
		6.1 Borrowers’ Loan Accounts. Agent shall maintain one or more loan account(s) on
		its books in which shall be recorded (a) all Loans, Letter of Credit 
	 

	 
		 
	 

	 
		 
	 

	 
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		Accommodations and other Obligations and the
		Collateral, (b) all payments made by or on behalf of any Borrower or Guarantor
		and (c) all other appropriate debits and credits as provided in this Agreement,
		including fees, charges, costs, expenses and interest. All entries in the loan
		account(s) shall be made in accordance with Agent’s customary practices as
		in effect from time to time.
	 

	 
		6.2 Statements.
		Agent shall render to Administrative Borrower each month a statement setting
		forth the balance in the Borrowers’ loan account(s) maintained by Agent
		for Borrowers pursuant to the provisions of this Agreement, including
		principal, interest, fees, costs and expenses. Each such statement shall be
		subject to subsequent adjustment by Agent but shall, absent manifest errors or
		omissions, be considered correct and deemed accepted by Borrowers and
		Guarantors and conclusively binding upon Borrowers and Guarantors as an account
		stated except to the extent that Agent receives a written notice from
		Administrative Borrower of any specific exceptions of Administrative Borrower
		thereto within thirty (30) days after the date such statement has been received
		by Parent. Until such time as Agent shall have rendered to Administrative
		Borrower a written statement as provided above, the balance in any
		Borrower’s loan account(s) shall be presumptive evidence of the amounts
		due and owing to Agent and Lenders by Borrowers and Guarantors.
	 

	 
		6.3 Collection of Accounts.
	 

	 
		(a) Borrowers shall establish and maintain,
		at their expense, blocked accounts or lockboxes and related blocked accounts
		(in either case, “Blocked Accounts”), as Agent may specify, with such
		banks as are acceptable to Agent into which Borrowers shall promptly deposit
		and direct their respective account debtors to directly remit all payments on
		Receivables and all payments constituting proceeds of Inventory or other
		Collateral in the identical form in which such payments are made, whether by
		cash, check or other manner. Borrowers shall deliver, or cause to be delivered
		to Agent a Deposit Account Control Agreement duly authorized, executed and
		delivered by each bank where a Blocked Account is maintained as provided in
		Section 5.2 hereof or at any time and from time to time Agent may become the
		bank’s customer with respect to any of the Blocked Accounts and promptly
		upon Agent’s request, Borrowers shall execute and deliver such agreements
		and documents as Agent may require in connection therewith. Each Borrower and
		Guarantor agrees that all payments made to such Blocked Accounts or other funds
		received and collected by Agent or any Lender, whether in respect of the
		Receivables, as proceeds of Inventory or other Collateral or otherwise shall be
		treated as payments to Agent and Lenders in respect of the Obligations and
		therefore shall constitute the property of Agent and Lenders to the extent of
		the then outstanding Obligations.
	 

	 
		(b) For purposes of calculating the amount
		of the Revolving Loans available to each Borrower, such payments will be
		applied (conditional upon final collection) to the Obligations on the Business
		Day of receipt by Agent of immediately available funds in the Agent Payment
		Account provided such payments and notice thereof are received in accordance
		with Agent’s usual and customary practices as in effect from time to time
		and within sufficient time to credit such Borrower’s loan account on such
		day, and if not, then on the next Business Day. For the purposes of calculating
		interest on the Obligations, such payments or other funds received will be
		applied (conditional upon final collection) to the Obligations one (1) Business
		Day following the date of receipt of immediately available funds by Agent in
		the Agent Payment 
	 

	 
		 
	 

	 
		 
	 

	 
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		Account provided such payments or other
		funds and notice thereof are received in accordance with Agent’s usual and
		customary practices as in effect from time to time and within sufficient time
		to credit such Borrower’s loan account on such day, and if not, then on
		the next Business Day. In the event that at any time or from time to time there
		are no Loans outstanding, Agent shall be entitled to an administrative fee in
		an amount equivalent to the Interest Rate for Prime Rate Loans (on a per annum
		basis) multiplied by the amount of the funds received in the Blocked Account
		for such day as calculated by Agent in accordance with its customary practice.
		The economic benefit of the timing in the application of payments (and the
		administrative charge with respect thereto, if applicable) shall be for the
		sole benefit of Agent.
	 

	 
		(c) Each Borrower and Guarantor and their
		respective shareholders, directors, employees, agents, Subsidiaries or other
		Affiliates shall, acting as trustee for Agent, receive, as the property of
		Agent, any monies, checks, notes, drafts or any other payment relating to
		and/or proceeds of Accounts or other Collateral which come into their
		possession or under their control and immediately upon receipt thereof, shall
		deposit or cause the same to be deposited in the Blocked Accounts, or remit the
		same or cause the same to be remitted, in kind, to Agent. In no event shall the
		same be commingled with any Borrower’s or Guarantor’s own funds.
		Borrowers agree to reimburse Agent on demand for any amounts owed or paid to
		any bank or other financial institution at which a Blocked Account or any other
		deposit account or investment account is established or any other bank,
		financial institution or other person involved in the transfer of funds to or
		from the Blocked Accounts arising out of Agent’s payments to or
		indemnification of such bank, financial institution or other person. The
		obligations of Borrowers to reimburse Agent for such amounts pursuant to this
		Section 6.3 shall survive the termination of this Agreement.
	 

	 
		6.4 Payments.

	 

	 
		(a) All Obligations shall be payable to the
		Agent Payment Account as provided in Section 6.3 or such other place as Agent
		may designate from time to time. Agent shall apply payments received or
		collected from any Borrower or Guarantor or for the account of any Borrower or
		Guarantor (including the monetary proceeds of collections or of realization
		upon any Collateral) as follows: first, to pay
		any fees, indemnities or expense reimbursements then due to Agent and Lenders
		from any Borrower or Guarantor; second, to pay
		interest due in respect of any Loans (and including any Special Agent
		Advances); third, to pay or prepay principal in respect of Special Agent
		Advances; fourth, to pay principal due in respect of the Loans and to
		pay Obligations then due arising under or pursuant to any Hedge Agreements of a
		Borrower or Guarantor with a Bank Product Provider (up to the amount of any
		then effective Reserve established in respect of such Obligations), on a
		pro rata basis;
		fifth, to pay or prepay any other Obligations, whether or not
		then due, in such order and manner as Agent determines or to be held as cash
		collateral in connection with any Letter of Credit Accommodations or other
		contingent Obligations (but not including for this purpose any Obligations
		arising under or pursuant to any Bank Products); and sixth, to pay or
		prepay any Obligations arising under or pursuant to any Bank Products (other
		than to the extent provided for above) on a pro
		rata basis. Notwithstanding anything to the contrary
		contained in this Agreement, (i) unless so directed by Administrative Borrower,
		or unless a Default or an Event of Default shall exist or have occurred and be
		continuing, Agent shall not apply any payments which it receives to any
		Eurodollar Rate Loans, except (A) on the expiration date of the Interest Period
		applicable to any such Eurodollar
	 

	 
		 
	 

	 
		 
	 

	 
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		Rate Loans or (B) in the event that there
		are no outstanding Prime Rate Loans and (ii) to the extent any Borrower uses
		any proceeds of the Loans or Letter of Credit Accommodations to acquire rights
		in or the use of any Collateral or to repay any Indebtedness used to acquire
		rights in or the use of any Collateral, payments in respect of the Obligations
		shall be deemed applied first to the Obligations arising from Loans and Letter
		of Credit Accommodations that were not used for such purposes and second to the
		Obligations arising from Loans and Letter of Credit Accommodations the proceeds
		of which were used to acquire rights in or the use of any Collateral in the
		chronological order in which such Borrower acquired such rights in or the use
		of such Collateral.
	 

	 
		(b) At Agent’s option, all principal,
		interest, fees, costs, expenses and other charges provided for in this
		Agreement or the other Financing Agreements may be charged directly to the loan
		account(s) of any Borrower maintained by Agent. Borrowers and Guarantors shall
		make all payments to Agent and Lenders on the Obligations free and clear of,
		and without deduction or withholding for or on account of, any setoff,
		counterclaim, defense, duties, taxes, levies, imposts, fees, deductions,
		withholding, restrictions or conditions of any kind. If after receipt of any
		payment of, or proceeds of Collateral applied to the payment of, any of the
		Obligations, Agent or any Lender is required to surrender or return such
		payment or proceeds to any Person for any reason, then the Obligations intended
		to be satisfied by such payment or proceeds shall be reinstated and continue
		and this Agreement shall continue in full force and effect as if such payment
		or proceeds had not been received by Agent or such Lender. Borrowers and
		Guarantors shall be liable to pay to Agent, and do hereby indemnify and hold
		Agent and Lenders harmless for the amount of any payments or proceeds
		surrendered or returned. This Section 6.4(b) shall remain effective
		notwithstanding any contrary action which may be taken by Agent or any Lender
		in reliance upon such payment or proceeds. This Section 6.4 shall survive the
		payment of the Obligations and the termination of this Agreement.
	 

	 
		6.5 Authorization to Make
		Loans. Agent and Lenders are authorized
		to make the Loans and provide the Letter of Credit Accommodations based upon
		telephonic or other instructions received from anyone purporting to be an
		officer of Administrative Borrower or any Borrower or other authorized person
		or, at the discretion of Agent, if such Loans are necessary to satisfy any
		Obligations. All requests for Loans or Letter of Credit Accommodations
		hereunder shall specify the date on which the requested advance is to be made
		or Letter of Credit Accommodations established (which day shall be a Business
		Day) and the amount of the requested Loan. Requests received after 1:00 p.m.
		New York time on any day shall be deemed to have been made as of the opening of
		business on the immediately following Business Day. All Loans and Letter of
		Credit Accommodations under this Agreement shall be conclusively presumed to
		have been made to, and at the request of and for the benefit of, any Borrower
		or Guarantor when deposited to the credit of any Borrower or Guarantor or
		otherwise disbursed or established in accordance with the instructions of any
		Borrower or Guarantor or in accordance with the terms and conditions of this
		Agreement.
	 

	 
		6.6 Use of Proceeds.
		Borrowers shall use the initial proceeds of the Loans provided by Agent to
		Borrowers hereunder only for: (a) payments to each of the persons listed in the
		disbursement direction letter furnished by Borrowers to Agent on or about the
		date hereof and (b) costs, expenses and fees in connection with the
		preparation, negotiation, execution and delivery of this Agreement and the
		other Financing Agreements. All other Loans made or Letter
	 

	 
		 
	 

	 
		 
	 

	 
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		of Credit Accommodations provided to or for
		the benefit of any Borrower pursuant to the provisions hereof shall be used by
		such Borrower only for general operating, working capital and other proper
		corporate purposes of such Borrower not otherwise prohibited by the terms
		hereof. None of the proceeds will be used, directly or indirectly, for the
		purpose of purchasing or carrying any margin security or for the purposes of
		reducing or retiring any indebtedness which was originally incurred to purchase
		or carry any margin security or for any other purpose which might cause any of
		the Loans to be considered a “purpose credit” within the meaning of
		Regulation U of the Board of Governors of the Federal Reserve System, as
		amended.
	 

	 
		6.7 Appointment of Administrative Borrower as Agent for
		Requesting Loans and Receipts of Loans and Statements.
	 

	 
		(a) Each Borrower hereby irrevocably
		appoints and constitutes Administrative Borrower as its agent to request and
		receive Loans and Letter of Credit Accommodations pursuant to this Agreement
		and the other Financing Agreements from Agent or any Lender in the name or on
		behalf of such Borrower. Agent and Lenders may disburse the Loans to such bank
		account of Administrative Borrower or a Borrower or otherwise make such Loans
		to a Borrower and provide such Letter of Credit Accommodations to a Borrower as
		Administrative Borrower may designate or direct, without notice to any other
		Borrower or Obligor. Notwithstanding anything to the contrary contained herein,
		Agent may at any time and from time to time require that Loans to or for the
		account of any Borrower be disbursed directly to an operating account of such
		Borrower.
	 

	 
		(b) Administrative Borrower hereby accepts
		the appointment by Borrowers to act as the agent of Borrowers pursuant to this
		Section 6.7. Administrative Borrower shall ensure that the disbursement of any
		Loans to each Borrower requested by or paid to or for the account of Parent, or
		the issuance of any Letter of Credit Accommodations for a Borrower hereunder,
		shall be paid to or for the account of such Borrower.
	 

	 
		(c) Each Borrower and other Guarantor hereby
		irrevocably appoints and constitutes Administrative Borrower as its agent to
		receive statements on account and all other notices from Agent and Lenders with
		respect to the Obligations or otherwise under or in connection with this
		Agreement and the other Financing Agreements.
	 

	 
		(d) Any notice, election, representation,
		warranty, agreement or undertaking by or on behalf of any other Borrower or any
		Guarantor by Administrative Borrower shall be deemed for all purposes to have
		been made by such Borrower or Guarantor, as the case may be, and shall be
		binding upon and enforceable against such Borrower or Guarantor to the same
		extent as if made directly by such Borrower of Guarantor.
	 

	 
		(e) No purported termination of the
		appointment of Administrative Borrower as agent as aforesaid shall be
		effective, except after ten (10) days’ prior written notice to
		Agent.
	 

	 
		6.8 Pro Rata Treatment. Except to the extent otherwise provided in this
		Agreement: (a) the making and conversion of Loans shall be made among the
		Lenders based on their respective Pro Rata Shares as to the Loans and (b) each
		payment on account of any Obligations to or for the account of one or more of
		Lenders in respect of any Obligations due on
	 

	 
		 
	 

	 
		 
	 

	 
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		a particular day shall be allocated among
		the Lenders entitled to such payments based on their respective Pro Rata Shares
		and shall be distributed accordingly.
	 

	 
		6.9 Sharing of Payments, Etc.
	 

	 
		(a) Each Borrower and Guarantor agrees that,
		in addition to (and without limitation of) any right of setoff, banker’s
		lien or counterclaim Agent or any Lender may otherwise have, each Lender shall
		be entitled, at its option (but subject, as among Agent and Lenders, to the
		provisions of Section 12.3(b) hereof), to offset balances held by it for the
		account of such Borrower or Guarantor at any of its offices, in dollars or in
		any other currency, against any principal of or interest on any Loans owed to
		such Lender or any other amount payable to such Lender hereunder, that is not
		paid when due (regardless of whether such balances are then due to such
		Borrower or Guarantor), in which case it shall promptly notify Administrative
		Borrower and Agent thereof; provided, that, such Lender’s failure to give
		such notice shall not affect the validity thereof.
	 

	 
		(b) If any Lender (including Agent) shall
		obtain from any Borrower or Guarantor payment of any principal of or interest
		on any Loan owing to it or payment of any other amount under this Agreement or
		any of the other Financing Agreements through the exercise of any right of
		setoff, banker’s lien or counterclaim or similar right or otherwise (other
		than from Agent as provided herein), and, as a result of such payment, such
		Lender shall have received more than its Pro Rata Share of the principal of the
		Loans or more than its share of such other amounts then due hereunder or
		thereunder by any Borrower or Guarantor to such Lender than the percentage
		thereof received by any other Lender, it shall promptly pay to Agent, for the
		benefit of Lenders, the amount of such excess and simultaneously purchase from
		such other Lenders a participation in the Loans or such other amounts,
		respectively, owing to such other Lenders (or such interest due thereon, as the
		case may be) in such amounts, and make such other adjustments from time to time
		as shall be equitable, to the end that all Lenders shall share the benefit of
		such excess payment (net of any expenses that may be incurred by such Lender in
		obtaining or preserving such excess payment) in accordance with their
		respective Pro Rata Shares or as otherwise agreed by Lenders. To such end all
		Lenders shall make appropriate adjustments among themselves (by the resale of
		participation sold or otherwise) if such payment is rescinded or must otherwise
		be restored.
	 

	 
		(c) Each Borrower and Guarantor agrees that
		any Lender purchasing a participation (or direct interest) as provided in this
		Section may exercise, in a manner consistent with this Section, all rights of
		setoff, banker’s lien, counterclaim or similar rights with respect to such
		participation as fully as if such Lender were a direct holder of Loans or other
		amounts (as the case may be) owing to such Lender in the amount of such
		participation.
	 

	 
		(d) Nothing contained herein shall require
		any Lender to exercise any right of setoff, banker’s lien, counterclaims
		or similar rights or shall affect the right of any Lender to exercise, and
		retain the benefits of exercising, any such right with respect to any other
		Indebtedness or obligation of any Borrower or Guarantor. If, under any
		applicable bankruptcy, insolvency or other similar law, any Lender receives a
		secured claim in lieu of a setoff to which this Section applies, such Lender
		shall, to the extent practicable, assign such rights to Agent for the benefit
		of Lenders and, in any event, exercise its rights in respect of such secured
		claim in a
	 

	 
		 
	 

	 
		 
	 

	 
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		manner consistent with the rights of Lenders
		entitled under this Section to share in the benefits of any recovery on such
		secured claim.
	 

	 
		6.10 Settlement Procedures.
	 

	 
		(a) In order to administer the Credit
		Facility in an efficient manner and to minimize the transfer of funds between
		Agent and Lenders, Agent may, at its option, subject to the terms of this
		Section, make available, on behalf of Lenders, the full amount of the Loans
		requested or charged to any Borrower’s loan account(s) or otherwise to be
		advanced by Lenders pursuant to the terms hereof, without requirement of prior
		notice to Lenders of the proposed Loans.
	 

	 
		(b) With respect to all Loans made by Agent
		on behalf of Lenders as provided in this Section, the amount of each
		Lender’s Pro Rata Share of the outstanding Loans shall be computed weekly,
		and shall be adjusted upward or downward on the basis of the amount of the
		outstanding Loans as of 5:00 p.m. New York time on the Business Day immediately
		preceding the date of each settlement computation; provided, that, Agent
		retains the absolute right at any time or from time to time to make the above
		described adjustments at intervals more frequent than weekly, but in no event
		more than twice in any week. Agent shall deliver to each of the Lenders after
		the end of each week, or at such lesser period or periods as Agent shall
		determine, a summary statement of the amount of outstanding Loans for such
		period (such week or lesser period or periods being hereinafter referred to as
		a “Settlement Period”). If the summary statement is sent by Agent and
		received by a Lender prior to 12:00 p.m. New York time, then such Lender shall
		make the settlement transfer described in this Section by no later than 3:00
		p.m. New York time on the same Business Day and if received by a Lender after
		12:00 p.m. New York time, then such Lender shall make the settlement transfer
		by not later than 3:00 p.m. New York time on the next Business Day following
		the date of receipt. If, as of the end of any Settlement Period, the amount of
		a Lender’s Pro Rata Share of the outstanding Loans is more than such
		Lender’s Pro Rata Share of the outstanding Loans as of the end of the
		previous Settlement Period, then such Lender shall forthwith (but in no event
		later than the time set forth in the preceding sentence) transfer to Agent by
		wire transfer in immediately available funds the amount of the increase.
		Alternatively, if the amount of a Lender’s Pro Rata Share of the
		outstanding Loans in any Settlement Period is less than the amount of such
		Lender’s Pro Rata Share of the outstanding Loans for the previous
		Settlement Period, Agent shall forthwith transfer to such Lender by wire
		transfer in immediately available funds the amount of the decrease. The
		obligation of each of the Lenders to transfer such funds and effect such
		settlement shall be irrevocable and unconditional and without recourse to or
		warranty by Agent. Agent and each Lender agrees to mark its books and records
		at the end of each Settlement Period to show at all times the dollar amount of
		its Pro Rata Share of the outstanding Loans and Letter of Credit
		Accommodations. Each Lender shall only be entitled to receive interest on its
		Pro Rata Share of the Loans to the extent such Loans have been funded by such
		Lender. Because the Agent on behalf of Lenders may be advancing and/or may be
		repaid Loans prior to the time when Lenders will actually advance and/or be
		repaid such Loans, interest with respect to Loans shall be allocated by Agent
		in accordance with the amount of Loans actually advanced by and repaid to each
		Lender and the Agent and shall accrue from and including the date such Loans
		are so advanced to but excluding the date such Loans are either repaid by
		Borrowers or actually settled with the applicable Lender as described in this
		Section.
	 

	 
		 
	 

	 
		 
	 

	 
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		(c) To the extent that Agent has made any
		such amounts available and the settlement described above shall not yet have
		occurred, upon repayment of any Loans by a Borrower, Agent may apply such
		amounts repaid directly to any amounts made available by Agent pursuant to this
		Section. In lieu of weekly or more frequent settlements, Agent may, at its
		option, at any time require each Lender to provide Agent with immediately
		available funds representing its Pro Rata Share of each Loan, prior to
		Agent’s disbursement of such Loan to Borrower. In such event, all Loans
		under this Agreement shall be made by the Lenders simultaneously and
		proportionately to their Pro Rata Shares. No Lender shall be responsible for
		any default by any other Lender in the other Lender’s obligation to make a
		Loan requested hereunder nor shall the Commitment of any Lender be increased or
		decreased as a result of the default by any other Lender in the other
		Lender’s obligation to make a Loan hereunder.
	 

	 
		(d) If Agent is not funding a particular
		Loan to a Borrower (or Administrative Borrower for the benefit of such
		Borrower) pursuant to this Section on any day, Agent may assume that each
		Lender will make available to Agent such Lender’s Pro Rata Share of the
		Loan requested or otherwise made on such day and Agent may, in its discretion,
		but shall not be obligated to, cause a corresponding amount to be made
		available to or for the benefit of such Borrower on such day. If Agent makes
		such corresponding amount available to a Borrower and such corresponding amount
		is not in fact made available to Agent by such Lender, Agent shall be entitled
		to recover such corresponding amount on demand from such Lender together with
		interest thereon for each day from the date such payment was due until the date
		such amount is paid to Agent at the Federal Funds Rate for each day during such
		period (as published by the Federal Reserve Bank of New York or at Agent’s
		option based on the arithmetic mean determined by Agent of the rates for the
		last transaction in overnight Federal funds arranged prior to 9:00 a.m. (New
		York City time) on that day by each of the three leading brokers of Federal
		funds transactions in New York City selected by Agent) and if such amounts are
		not paid within three (3) Business Days of Agent’s demand, at the highest
		Interest Rate provided for in Section 3.1 hereof applicable to Prime Rate
		Loans. During the period in which such Lender has not paid such corresponding
		amount to Agent, notwithstanding anything to the contrary contained in this
		Agreement or any of the other Financing Agreements, the amount so advanced by
		Agent to or for the benefit of any Borrower shall, for all purposes hereof, be
		a Loan made by Agent for its own account. Upon any such failure by a Lender to
		pay Agent, Agent shall promptly thereafter notify Administrative Borrower of
		such failure and Borrowers shall pay such corresponding amount to Agent for its
		own account within five (5) Business Days of Administrative Borrower’s
		receipt of such notice. A Lender who fails to pay Agent its Pro Rata Share of
		any Loans made available by the Agent on such Lender’s behalf, or any
		Lender who fails to pay any other amount owing by it to Agent, is a
		“Defaulting Lender”. Agent shall not be obligated to transfer to a
		Defaulting Lender any payments received by Agent for the Defaulting
		Lender’s benefit, nor shall a Defaulting Lender be entitled to the sharing
		of any payments hereunder (including any principal, interest or fees). Amounts
		payable to a Defaulting Lender shall instead be paid to or retained by Agent.
		Agent may hold and, in its discretion, relend to a Borrower the amount of all
		such payments received or retained by it for the account of such Defaulting
		Lender. For purposes of voting or consenting to matters with respect to this
		Agreement and the other Financing Agreements and determining Pro Rata Shares,
		such Defaulting Lender shall be deemed not to be a “Lender” and such
		Lender’s Commitment shall be deemed to be zero (0). This Section shall
		remain effective with respect to a Defaulting Lender until such default is
		cured. The operation of this Section shall not be construed to increase
		or
	 

	 
		 
	 

	 
		 
	 

	 
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		otherwise affect the Commitment of any
		Lender, or relieve or excuse the performance by any Borrower or Obligor of
		their duties and obligations hereunder.
	 

	 
		(e) Nothing in this Section or elsewhere in
		this Agreement or the other Financing Agreements shall be deemed to require
		Agent to advance funds on behalf of any Lender or to relieve any Lender from
		its obligation to fulfill its Commitment hereunder or to prejudice any rights
		that any Borrower may have against any Lender as a result of any default by any
		Lender hereunder in fulfilling its Commitment.
	 

	 
		6.11 Obligations Several; Independent Nature of Lenders’
		Rights. The obligation of each Lender
		hereunder is several, and no Lender shall be responsible for the obligation or
		commitment of any other Lender hereunder. Nothing contained in this Agreement
		or any of the other Financing Agreements and no action taken by the Lenders
		pursuant hereto or thereto shall be deemed to constitute the Lenders to be a
		partnership, an association, a joint venture or any other kind of entity. The
		amounts payable at any time hereunder to each Lender shall be a separate and
		independent debt, and subject to Section 12.3 hereof, each Lender shall be
		entitled to protect and enforce its rights arising out of this Agreement and it
		shall not be necessary for any other Lender to be joined as an additional party
		in any proceeding for such purpose.
	 

	 
		6.12 Bank Products.
		Borrowers and Guarantors, or any of their Subsidiaries, may (but no such Person
		is required to) request that Bank Product Providers provide or arrange for such
		Person to obtain Bank Products from Bank Product Providers, and each Bank
		Product Provider may, in its sole discretion, provide or arrange for such
		Person to obtain the requested Bank Products. Borrowers and Guarantors or any
		of their Subsidiaries that obtains Bank Products shall indemnify and hold
		Agent, each Lender and their respective Affiliates harmless from any and all
		obligations now or hereafter owing to any other Person by any Bank Product
		Provider in connection with any Bank Products other than for gross negligence
		or willful misconduct on the part of any such indemnified Person. This Section
		6.12 shall survive the payment of the Obligations and the termination of this
		Agreement. Borrower and its Subsidiaries acknowledge and agree that the
		obtaining of Bank Products from Bank Product Providers (a) is in the sole
		discretion of such Bank Product Provider, and (b) is subject to all rules and
		regulations of such Bank Product Provider.
	 

	 
		SECTION 7. COLLATERAL REPORTING AND
		COVENANTS
	 

	 
		7.1 Collateral Reporting.
	 

	 
		(a) Borrowers shall provide Agent with the
		following documents in a form satisfactory to Agent: 
	 

	 
		(i) on a daily basis, a schedule of sales
		made, credits issued and cash received;
	 

	 
		(ii) as soon as possible after the end of
		each month (but in any event within ten (10) Business Days after the end
		thereof), on a monthly basis or more frequently as Agent may request,
		(A) agings of accounts payable and accounts
		receivable separately
	 

	 
		 
	 

	 
		 
	 

	 
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		identifying retainage amounts, and (B)
		reports with respect to contract renewals, terminations and new contracts
		constituting Material Contracts, 
	 

	 
		(iii) upon Agent’s request, (A) copies
		of customer statements and credit memos, remittance advices and reports, and
		copies of deposit slips and bank statements, and (B) such other reports as to
		the Collateral as Agent shall request from time to time. 
	 

	 
		(b) If any Borrower’s or
		Guarantor’s records or reports of the Collateral are prepared or
		maintained by an accounting service, contractor, shipper or other agent, such
		Borrower and Guarantor hereby irrevocably authorizes such service, contractor,
		shipper or agent to deliver such records, reports, and related documents to
		Agent and to follow Agent’s instructions with respect to further services
		at any time that an Event of Default exists or has occurred and is
		continuing.
	 

	 
		7.2 Accounts Covenants.
	 

	 
		(a) Borrowers shall notify Agent promptly
		of: (i) any material delay in any Borrower’s performance of any of its
		material obligations to any account debtor or the assertion of any material
		claims, offsets, defenses or counterclaims by any account debtor, or any
		material disputes with account debtors, or any settlement, adjustment or
		compromise thereof, (ii) all material adverse information known to any Borrower
		or Guarantor relating to the financial condition of any account debtor and
		(iii) any event or circumstance which, to the best of any Borrower’s or
		Guarantor’s knowledge, would cause Agent to consider any then existing
		Accounts as no longer constituting Eligible Accounts. No credit, discount,
		allowance or extension or agreement for any of the foregoing shall be granted
		to any account debtor without Agent’s consent, except in the ordinary
		course of a Borrower’s or Guarantor’s business in accordance with
		practices and policies previously disclosed in writing to Agent and except as
		set forth in the schedules delivered to Agent pursuant to Section 7.1(a) above.
		So long as no Event of Default exists or has occurred and is continuing,
		Borrowers and Guarantors shall settle, adjust or compromise any claim, offset,
		counterclaim or dispute with any account debtor. At any time that an Event of
		Default exists or has occurred and is continuing, Agent shall, at its option,
		have the exclusive right to settle, adjust or compromise any claim, offset,
		counterclaim or dispute with account debtors or grant any credits, discounts or
		allowances.
	 

	 
		(b) With respect to each Account: (i) the
		amounts shown on any invoice delivered to Agent or schedule thereof delivered
		to Agent shall be true and complete, (ii) no payments shall be made thereon
		except payments immediately delivered to Agent pursuant to the terms of this
		Agreement, (iii) no credit, discount, allowance or extension or agreement for
		any of the foregoing shall be granted to any account debtor except as reported
		to Agent in accordance with this Agreement and except for credits, discounts,
		allowances or extensions made or given in the ordinary course of each
		Borrower’s business in accordance with practices and policies previously
		disclosed to Agent, (iv) there shall be no setoffs, deductions, contras,
		defenses, counterclaims or disputes existing or asserted with respect thereto
		except as reported to Agent in accordance with the terms of this Agreement, (v)
		none of the transactions giving rise thereto will violate any applicable
		foreign, Federal, State or local laws or regulations, all documentation
		relating thereto will be legally sufficient under such laws and regulations and
		all such documentation will be legally enforceable in accordance with its
		terms.
	 

	 
		 
	 

	 
		 
	 

	 
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		(c) Agent shall have the right at any time
		or times, in Agent’s name or in the name of a nominee of Agent, to verify
		the validity, amount or any other matter relating to any Receivables or other
		Collateral, by mail, telephone, facsimile transmission or otherwise. When no
		Event of Default has occurred and is continuing, Agent shall give
		Administrative Borrower at least one (1) Business Day’s prior telephonic
		notice of any such verification.
	 

	 
		7.3 Intentionally Deleted.
	 

	 
		7.4 Equipment and Real Property Covenants. With
		respect to the Equipment and Real Property owned by any Borrower or Guarantor:
		(a) upon Agent’s request, Borrowers and Guarantors shall, at their expense
		at any time or times as Agent may request on or after an Event of Default,
		deliver or cause to be delivered to Agent written appraisals as to the Real
		Property located in Ridgewood, New York in form, scope and methodology
		acceptable to Agent and by an appraiser acceptable to Agent, addressed to Agent
		and upon which Agent is expressly permitted to rely; (b) Borrowers shall
		maintain the vehicles in accordance with the maintenance system utilized by
		Borrowers on the date hereof and otherwise in a manner acceptable to Agent;
		each Borrower shall keep the Equipment in good order, repair, running and
		marketable condition (ordinary wear and tear excepted); (c) Borrowers and
		Guarantors shall use the Equipment and Real Property with all reasonable care
		and caution and in accordance with applicable standards of any insurance and in
		conformity with all applicable laws; (d) the Equipment is and shall be used in
		the business of Borrowers and Guarantors and not for personal, family,
		household or farming use; (e) Borrowers and Guarantors shall not remove any
		Equipment from the locations set forth or permitted herein, except to the
		extent necessary to have any Equipment repaired or maintained in the ordinary
		course of its business or to move Equipment directly from one location set
		forth or permitted herein to another such location and except for the movement
		of motor vehicles used by or for the benefit of such Borrower or Guarantor in
		the ordinary course of business; (f) the Equipment is now and shall remain
		personal property and Borrowers and Guarantors shall not permit any of the
		Equipment to be or become a part of or affixed to real property; and (g) each
		Borrower and Guarantor assumes all responsibility and liability arising from
		the use of the Equipment and Real Property.
	 

	 
		7.5 Power of Attorney. Each Borrower and Guarantor hereby irrevocably
		designates and appoints Agent (and all persons designated by Agent) as such
		Borrower’s and Guarantor’s true and lawful attorney-in-fact, and
		authorizes Agent, in such Borrower’s, Guarantor’s or Agent’s
		name, to: (a) at any time an Event of Default exists or has occurred and is
		continuing (i) demand payment on Receivables or other Collateral, (ii) enforce
		payment of Receivables by legal proceedings or otherwise, (iii) exercise all of
		such Borrower’s or Guarantor’s rights and remedies to collect any
		Receivable or other Collateral, (iv) sell or assign any Receivable upon such
		terms, for such amount and at such time or times as the Agent deems advisable,
		(v) settle, adjust, compromise, extend or renew an Account, (vi) discharge and
		release any Receivable, (vii) prepare, file and sign such Borrower’s or
		Guarantor’s name on any proof of claim in bankruptcy or other similar
		document against an account debtor or other obligor in respect of any
		Receivables or other Collateral, (viii) notify the post office authorities to
		change the address for delivery of remittances from account debtors or other
		obligors in respect of Receivables or other proceeds of Collateral to an
		address designated by Agent, and open and dispose of all mail addressed to such
		Borrower or Guarantor and handle and store all mail relating to the Collateral;
		(ix) prepare, complete and execute any documents on behalf of any
	 

	 
		 
	 

	 
		 
	 

	 
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		Borrower or Guarantor, as the case may be,
		in order to issue a manufacturer’s statement of origin,
		manufacturer’s certificate of origin and other certificates, statements,
		bills of sale or other evidence of the transfer by any Borrower or Guarantor,
		as the case may be, of any vehicle of Borrower or Guarantor, as the case may
		be, and in order to cause a certificate of title with respect to any vehicle to
		be issued, and (x) do all acts and things which are necessary, in Agent’s
		determination, to fulfill such Borrower’s or Guarantor’s obligations
		under this Agreement and the other Financing Agreements and (b) at any time to
		(i) take control in any manner of any item of payment in respect of Receivables
		or constituting Collateral or otherwise received in or for deposit in the
		Blocked Accounts or otherwise received by Agent or any Lender, (ii) have access
		to any lockbox or postal box into which remittances from account debtors or
		other obligors in respect of Receivables or other proceeds of Collateral are
		sent or received, (iii) endorse such Borrower’s or Guarantor’s name
		upon any items of payment in respect of Receivables or constituting Collateral
		or otherwise received by Agent and any Lender and deposit the same in
		Agent’s account for application to the Obligations, (iv) endorse such
		Borrower’s or Guarantor’s name upon any chattel paper, document,
		instrument, invoice, or similar document or agreement relating to any
		Receivable or any goods pertaining thereto or any other Collateral, including
		any warehouse or other receipts, or bills of lading and other negotiable or
		non-negotiable documents, (v) clear Inventory the purchase of which was
		financed with Letter of Credit Accommodations through U.S. Customs or foreign
		export control authorities in such Borrower’s or Guarantor’s name,
		Agent’s name or the name of Agent’s designee, and to sign and deliver
		to customs officials powers of attorney in such Borrower’s or
		Guarantor’s name for such purpose, and to complete in such Borrower’s
		or Guarantor’s or Agent’s name, any order, sale or transaction,
		obtain the necessary documents in connection therewith and collect the proceeds
		thereof, and (vi) sign such Borrower’s or Guarantor’s name on any
		verification of Receivables and notices thereof to account debtors or any
		secondary obligors or other obligors in respect thereof. Each Borrower and
		Guarantor hereby releases Agent and Lenders and their respective officers,
		employees and designees from any liabilities arising from any act or acts under
		this power of attorney and in furtherance thereof, whether of omission or
		commission, except as a result of Agent’s or any Lender’s own gross
		negligence or wilful misconduct as determined pursuant to a final
		non-appealable order of a court of competent jurisdiction.
	 

	 
		7.6 Right to Cure.
		Agent may, at its option, upon notice to Administrative Borrower, (a) cure any
		default by any Borrower or Guarantor under any material agreement with a third
		party that affects the Collateral, its value or the ability of Agent to
		collect, sell or otherwise dispose of the Collateral or the rights and remedies
		of Agent or any Lender therein or the ability of any Borrower or Guarantor to
		perform its obligations hereunder or under any of the other Financing
		Agreements, (b) pay or bond on appeal any judgment entered against any Borrower
		or Guarantor, and/or (c) discharge taxes, liens, security interests or other
		encumbrances at any time levied on or existing with respect to the Collateral
		and pay any amount, incur any expense or perform any act which, in Agent’s
		judgment, is necessary or appropriate to preserve, protect, insure or maintain
		the Collateral and the rights of Agent and Lenders with respect thereto. Agent
		may add any amounts so expended to the Obligations and charge any
		Borrower’s account therefor, such amounts to be repayable by Borrowers on
		demand. Agent and Lenders shall be under no obligation to effect such cure,
		payment or bonding and shall not, by doing so, be deemed to have assumed any
		obligation or liability of any Borrower or Guarantor. Any payment made or other
		action taken by Agent or any Lender under this Section
	 

	 
		 
	 

	 
		 
	 

	 
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		shall be without prejudice to any right to
		assert an Event of Default hereunder and to proceed accordingly.
	 

	 
		7.7 Access to Premises. From time to time as requested by Agent, at the cost
		and expense of Borrowers, (a) Agent or its designee (accompanied by no more
		than one (1) representative of each Lender) shall have complete access to all
		of each Borrower’s and Guarantor’s premises during normal business
		hours and after notice to Parent, or at any time and without notice to
		Administrative Borrower if an Event of Default exists or has occurred and is
		continuing, for the purposes of inspecting, verifying and auditing the
		Collateral and all of each Borrower’s and Guarantor’s books and
		records, including the Records, and (b) each Borrower and Guarantor shall
		promptly furnish to Agent such copies of such books and records or extracts
		therefrom as Agent may request, and Agent or any Lender or Agent’s
		designee may use during normal business hours such of any Borrower’s and
		Guarantor’s personnel, equipment, supplies and premises as may be
		reasonably necessary for the foregoing and if an Event of Default exists or has
		occurred and is continuing for the collection of Receivables and realization of
		other Collateral.
	 

	 
		SECTION 8. REPRESENTATIONS AND
		WARRANTIES
	 

	 
		Each Borrower and Guarantor hereby
		represents and warrants to Agent and Lenders the following (which shall survive
		the execution and delivery of this Agreement), the truth and accuracy of which
		are a continuing condition of the making of Loans and providing Letter of
		Credit Accommodations to Borrowers:
	 

	 
		8.1 Corporate Existence, Power and Authority. Each Borrower and Guarantor is a corporation duly
		organized and in good standing under the laws of its state of incorporation and
		is duly qualified as a foreign corporation and in good standing in all states
		or other jurisdictions where the nature and extent of the business transacted
		by it or the ownership of assets makes such qualification necessary, except for
		those jurisdictions in which the failure to so qualify would not have a
		material adverse effect on such Borrower’s or Guarantor’s financial
		condition, results of operation or business or the rights of Agent in or to any
		of the Collateral. The execution, delivery and performance of this Agreement,
		the other Financing Agreements and the transactions contemplated hereunder and
		thereunder (a) are all within each Borrower’s and Guarantor’s
		corporate powers, (b) have been duly authorized, (c) are not in contravention
		of law or the terms of any Borrower’s or Guarantor’s certificate of
		incorporation, by-laws, or other organizational documentation, or any
		indenture, agreement or undertaking to which any Borrower or Guarantor is a
		party or by which any Borrower or Guarantor or its property are bound and (d)
		will not result in the creation or imposition of, or require or give rise to
		any obligation to grant, any lien, security interest, charge or other
		encumbrance upon any property of any Borrower or Guarantor other than in favor
		of the Agent, the Lenders, the Noteholder Collateral Agent and the Noteholders
		as permitted in Section 9.8 hereof. This Agreement and the other Financing
		Agreements to which any Borrower or Guarantor is a party constitute legal,
		valid and binding obligations of such Borrower and Guarantor enforceable in
		accordance with their respective terms.
	 

	 
		 
	 

	 
		 
	 

	 
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		8.2 Name; State of Organization; Chief Executive Office;
		Collateral Locations.
	 

	 
		(a) The exact legal name of each Borrower
		and Guarantor is as set forth on the signature page of this Agreement and in
		the Information Certificate. No Borrower or Guarantor has, during the five
		years prior to the date of this Agreement, been known by or used any other
		corporate or fictitious name or been a party to any merger or consolidation, or
		acquired all or substantially all of the assets of any Person, or acquired any
		of its property or assets out of the ordinary course of business, except as set
		forth in the Information Certificate.
	 

	 
		(b) Each Borrower and Guarantor is an
		organization of the type and organized in the jurisdiction set forth in the
		Information Certificate. The Information Certificate accurately sets forth the
		organizational identification number of each Borrower and Guarantor or
		accurately states that such Borrower or Guarantor has none and accurately sets
		forth the federal employer identification number of each Borrower and
		Guarantor.
	 

	 
		(c) The chief executive office and mailing
		address of each Borrower and Guarantor and each Borrower’s and
		Guarantor’s Records concerning Accounts are located only at the address
		identified as such in the Information Certificate and its only other places of
		business and the only other locations of Collateral, if any, are the addresses
		set forth in Schedule 8.2 to the Information Certificate, subject to the rights
		of any Borrower or Guarantor to establish new locations in accordance with
		Section 9.2 hereof. The Information Certificate correctly identifies any of
		such locations which are not owned by a Borrower or Guarantor and sets forth
		the owners and/or operators thereof.
	 

	 
		8.3 Financial Statements; No Material Adverse
		Change. All financial statements
		relating to AETG, any Borrower or Guarantor which have been or may hereafter be
		delivered by any Borrower or Guarantor to Agent and Lenders have been prepared
		in accordance with GAAP (except as to any interim financial statements, to the
		extent such statements are subject to normal year-end adjustments and do not
		include any notes) and fairly present in all material respects the financial
		condition and the results of operation of such Borrower and Guarantor as at the
		dates and for the periods set forth therein. Except as disclosed in any interim
		financial statements furnished by Borrowers and Guarantors to Agent prior to
		the date of this Agreement, there has been no act, condition or event which has
		had or is reasonably likely to have a Material Adverse Effect since the date of
		the most recent audited financial statements of any Borrower or Guarantor
		furnished by any Borrower or Guarantor to Agent prior to the date of this
		Agreement. 
	 

	 
		8.4 Priority of Liens; Title to Properties. The security interests and liens granted to Agent
		under this Agreement and the other Financing Agreements constitute valid and
		perfected first priority liens and security interests in and upon the
		Collateral subject only to the liens indicated on Schedule 8.4 to the
		Information Certificate and the other liens permitted under Section 9.8 hereof.
		Each Borrower and Guarantor has good and marketable fee simple title to or
		valid leasehold interests in all of its Real Property and good, valid and
		merchantable title to all of its other properties and assets subject to no
		liens, mortgages, pledges, security interests, encumbrances or charges of any
		kind, except those granted to Agent and such others as are specifically listed
		on Schedule 8.4 to the Information Certificate or permitted under Section 9.8
		hereof.
	 

	 
		 
	 

	 
		 
	 

	 
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		8.5 Tax Returns.
		AETG and each Borrower and Guarantor has filed, or caused to be filed, in a
		timely manner all tax returns, reports and declarations which are required to
		be filed by it. All information in such tax returns, reports and declarations
		is complete and accurate in all material respects. Except to the extent
		discharged under the Plan of Reorganization or to the extent the Plan of
		Reorganization provides that such taxes are not required to be paid when due,
		AETG and each Borrower and Guarantor has paid or caused to be paid all taxes
		due and payable or claimed due and payable in any assessment received by it,
		except taxes the validity of which are being contested in good faith by
		appropriate proceedings diligently pursued and available to AETG, such Borrower
		or Guarantor and with respect to which adequate reserves have been set aside on
		its books and taxes set forth in Schedule E to the Information Certificate.
		Adequate provision has been made for the payment of all accrued and unpaid
		Federal, State, county, local, foreign and other taxes whether or not yet due
		and payable and whether or not disputed.
	 

	 
		8.6 Litigation.
		Except as set forth on Schedule 8.6 to the Information Certificate, (a) there
		is no investigation by any Governmental Authority pending, or to the best of
		any Borrower’s or Guarantor’s knowledge threatened, against or
		affecting AETG, any Borrower or Guarantor, its or their assets or business and
		(b) there is no action, suit, proceeding or claim by any Person pending, or to
		the best of any Borrower’s or Guarantor’s knowledge threatened,
		against AETG, any Borrower or Guarantor or its or their assets or goodwill, or
		against or affecting any transactions contemplated by this Agreement, in each
		case, which if adversely determined against AETG, such Borrower or Guarantor
		has or could reasonably be expected to have a Material Adverse Effect. 
	 

	 
		8.7 Compliance with Other Agreements and Applicable
		Laws.
	 

	 
		(a) Borrowers and Guarantors are not in
		default in any respect under, or in violation in any respect of the terms of,
		any material agreement, contract, instrument, lease or other commitment to
		which it is a party or by which it or any of its assets are bound. Borrowers
		and Guarantors are in compliance in all material respects with the requirements
		of all applicable laws, rules, regulations and orders of any Governmental
		Authority relating to their respective businesses, including, without
		limitation, those set forth in or promulgated pursuant to the Occupational
		Safety and Health Act of 1970, as amended, the Fair Labor Standards Act of
		1938, as amended, ERISA, the Code, as amended, and the rules and regulations
		thereunder, and all Environmental Laws.
	 

	 
		(b) Borrowers and Guarantors have obtained
		all material permits, licenses, approvals, consents, certificates, orders or
		authorizations of any Governmental Authority required for the lawful conduct of
		its business (the “Permits”). All of the Permits are valid and
		subsisting and in full force and effect. There are no actions, claims or
		proceedings pending or to the best of any Borrower’s or Guarantor’s
		knowledge, threatened that seek the revocation, cancellation, suspension or
		modification of any of the Permits.
	 

	 
		8.8 Environmental Compliance.
	 

	 
		(a) Except as set forth on Schedule 8.8 to
		the Information Certificate, Borrowers, Guarantors and any Subsidiary of any
		Borrower or Guarantor have not generated,
	 

	 
		 
	 

	 
		 
	 

	 
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		used, stored, treated, transported,
		manufactured, handled, produced or disposed of any Hazardous Materials, on or
		off its premises (whether or not owned by it) in any manner which at any time
		violates in any material respect any applicable Environmental Law or Permit,
		and the operations of Borrowers, Guarantors and any Subsidiary of any Borrower
		or Guarantor complies in all material respects with all Environmental Laws and
		all Permits.
	 

	 
		(b) Except as set forth on Schedule 8.8 to
		the Information Certificate, there has been no investigation by any
		Governmental Authority or any proceeding, complaint, order, directive, claim,
		citation or notice by any Governmental Authority or any other person nor is any
		pending or to the best of any Borrower’s or Guarantor’s knowledge
		threatened, with respect to any non-compliance with or violation of the
		requirements of any Environmental Law by any Borrower or Guarantor and any
		Subsidiary of any Borrower or Guarantor or the release, spill or discharge,
		threatened or actual, of any Hazardous Material or the generation, use,
		storage, treatment, transportation, manufacture, handling, production or
		disposal of any Hazardous Materials or any other environmental, health or
		safety matter, which adversely affects or could reasonably be expected to
		adversely affect in any material respect any Borrower or Guarantor or its or
		their business, operations or assets or any properties at which such Borrower
		or Guarantor has transported, stored or disposed of any Hazardous
		Materials.
	 

	 
		(c) Except as set forth on Schedule 8.8 to
		the Information Certificate, Borrowers, Guarantors and their Subsidiaries have
		no material liability (contingent or otherwise) in connection with a release,
		spill or discharge, threatened or actual, of any Hazardous Materials or the
		generation, use, storage, treatment, transportation, manufacture, handling,
		production or disposal of any Hazardous Materials.
	 

	 
		(d) Borrowers, Guarantors and their
		Subsidiaries have all Permits required to be obtained or filed in connection
		with the operations of Borrowers and Guarantors under any Environmental Law and
		all of such licenses, certificates, approvals or similar authorizations and
		other Permits are valid and in full force and effect.
	 

	 
		8.9 Employee Benefits
	 

	 
		(a) Except with respect to a delinquency in
		filing reports with respect to a 401(k) plan, neither Parent, any Borrower nor
		any Subsidiary of a Borrower has engaged in any transaction in connection with
		which Parent, such Borrower or such Subsidiary or any of their ERISA Affiliates
		could be subject to either a civil penalty assessed pursuant to Section 502(i)
		of ERISA or a tax imposed by Section 4975 of the Code, including any
		accumulated funding deficiency described in Section 8.9(c) hereof and any
		deficiency with respect to vested accrued benefits described in Section 8.9(d)
		hereof which could reasonably be expected to result in liabilities to any
		Borrower or Guarantor in an aggregate amount in excess of $100,000.
	 

	 
		(b) No liability to the Pension Benefit
		Guaranty Corporation has been or is expected by Parent, any Borrower or any
		Subsidiary of a Borrower to be incurred with respect to any employee pension
		benefit plan of Parent, such Borrower or any such Subsidiary or any of its
		ERISA Affiliates. There has been no reportable event (within the meaning of
		Section 4043(c) of ERISA) or any other event or condition with respect to any
		employee pension benefit plan of
	 

	 
		 
	 

	 
		 
	 

	 
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		 Parent, any such Borrower or any such
		Subsidiary or any of their ERISA Affiliates which presents a risk of
		termination of any such plan by the Pension Benefit Guaranty
		Corporation.
	 

	 
		(c) Except as set forth in the pre-petition
		claim of Division 1181 A.T.U. New York Welfare Fund and Division 1181 A.T.U.
		New York Employees Pension Fund which claim has been settled pursuant to the
		Order Approving Compromise and Settlement with Division 1181 A.T.U. New York
		Welfare Fund and Division 1181 A.T.U. New York Employees Pension Fund, dated
		October 2, 2003, full payment has been made of all amounts which Parent, any
		Borrower or any Subsidiary of a Borrower or any of their ERISA Affiliates is
		required under Section 302 of ERISA and Section 412 of the Code to have paid
		under the terms of each employee pension benefit plan as contributions to such
		plan as of the last day of the most recent fiscal year of such plan ended prior
		to the date hereof, and no accumulated funding deficiency (as defined in
		Section 302 of ERISA and Section 412 of the Code), whether or not waived,
		exists with respect to any employee pension benefit plan, including any penalty
		or tax described in Section 8.9(a) hereof and any deficiency with respect to
		vested accrued benefits described in Section 8.9(d) hereof which could
		reasonably be expected to result in liabilities to any Borrower or Guarantor in
		an aggregate amount in excess of $500,000.
	 

	 
		(d) The current value of all vested accrued
		benefits under all employee pension benefit plans maintained by Parent, any
		Borrower or any Subsidiary of a Borrower that are subject to Title IV of ERISA
		does not exceed the current value of the assets of such plans allocable to such
		vested accrued benefits, including any penalty or tax described in Section
		8.8(a) hereof and any accumulated funding deficiency described in Section
		8.8(c) hereof. The terms “current value” and “accrued
		benefit” have the meanings specified in ERISA which could reasonably be
		expected to result in liabilities to any Borrower or Guarantor in an aggregate
		amount of $500,000.
	 

	 
		(e) Except as set forth on Schedule 8.9
		hereto, none of Parent, any Borrower or any Subsidiary of a Borrower or any of
		their ERISA Affiliates is or has ever been obligated to contribute to any
		“multiemployer plan” (as such term is defined in Section 4001(a)(3)
		of ERISA) that is subject to Title IV of ERISA.
	 

	 
		8.10 Bank Accounts.
		All of the deposit accounts, investment accounts or other accounts in the name
		of or used by any Borrower or Guarantor maintained at any bank or other
		financial institution are set forth on Schedule 8.10 to the Information
		Certificate, subject to the right of each Borrower and Guarantor to establish
		new accounts in accordance with Section 5.2 hereof.
	 

	 
		8.11 Intellectual Property. Each Borrower and Guarantor owns or licenses or
		otherwise has the right to use all Intellectual Property necessary for the
		operation of its business as presently conducted or proposed to be conducted.
		As of the date hereof, Borrowers and Guarantors do not have any Intellectual
		Property registered, or subject to pending applications, in the United States
		Patent and Trademark Office or any similar office or agency in the United
		States, any State thereof, any political subdivision thereof or in any other
		country, other than those described in Schedule 8.11 to the Information
		Certificate and has not granted any licenses with respect thereto other than as
		set forth in Schedule 8.11 to the Information Certificate. No event has
		occurred which permits or would permit after notice or passage of time or both,
		the
	 

	 
		 
	 

	 
		 
	 

	 
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		revocation, suspension or termination of
		such rights. To the best of any Borrower’s and Guarantor’s knowledge,
		no slogan or other advertising device, product, process, method, substance or
		other Intellectual Property or goods bearing or using any Intellectual Property
		presently contemplated to be sold by or employed by any Borrower or Guarantor
		infringes any patent, trademark, servicemark, tradename, copyright, license or
		other Intellectual Property owned by any other Person presently and no claim or
		litigation is pending or threatened against or affecting any Borrower or
		Guarantor contesting its right to sell or use any such Intellectual Property.
		Schedule 8.11 to the Information Certificate sets forth all of the agreements
		or other arrangements of each Borrower and Guarantor pursuant to which such
		Borrower or Guarantor has a license or other right to use any trademarks,
		logos, designs, representations or other Intellectual Property (other than
		generally commercially available computer software) owned by another person as
		in effect on the date hereof and the dates of the expiration of such agreements
		or other arrangements of such Borrower or Guarantor as in effect on the date
		hereof (collectively, together with such agreements or other arrangements as
		may be entered into by any Borrower or Guarantor after the date hereof,
		collectively, the “License Agreements” and individually, a
		“License Agreement”). No trademark, servicemark, copyright or other
		Intellectual Property at any time used by any Borrower or Guarantor which is
		owned by another person, or owned by such Borrower or Guarantor subject to any
		security interest, lien, collateral assignment, pledge or other encumbrance in
		favor of any person other than Agent, is affixed to any Eligible Vehicle or
		Eligible New Vehicle, except (a) to the extent permitted under the term of the
		license agreements listed on Schedule 8.11 to the Information Certificate and
		(b) to the extent the sale of Inventory to which such Intellectual Property is
		affixed is permitted to be sold by such Borrower or Guarantor under applicable
		law (including the United States Copyright Act of 1976).
	 

	 
		8.12 Subsidiaries; Affiliates; Capitalization;
		Solvency.
	 

	 
		(a) Each Borrower and Guarantor does not
		have any direct or indirect Subsidiaries or Affiliates and is not engaged in
		any joint venture or partnership except as set forth in Schedule 8.12 and
		Exhibit A to the Information Certificate. No Inactive Subsidiary owns or holds
		any material assets or properties, has any Indebtedness (other than
		intercompany Indebtedness to Parent, other Borrowers or other Inactive
		Subsidiaries), has granted any liens on any of its assets (other than liens
		which have been satisfied) or conducts or engages in any active business or
		commercial activity.
	 

	 
		(b) Each Borrower and Guarantor is the
		record and beneficial owner of all of the issued and outstanding shares of
		Capital Stock of each of the Subsidiaries listed on Schedule 8.12 to the
		Information Certificate as being owned by such Borrower or Guarantor and there
		are no proxies, irrevocable or otherwise, with respect to such shares and no
		equity securities of any of the Subsidiaries are or may become required to be
		issued by reason of any options, warrants, rights to subscribe to, calls or
		commitments of any kind or nature and there are no contracts, commitments,
		understandings or arrangements by which any Subsidiary is or may become bound
		to issue additional shares of it Capital Stock or securities convertible into
		or exchangeable for such shares, other than the Warrants.
	 

	 
		(c) The issued and outstanding shares of
		Capital Stock of each Borrower and Guarantor are directly and beneficially
		owned and held by the persons indicated in the Information Certificate, and in
		each case all of such shares have been duly authorized and are
	 

	 
		 
	 

	 
		 
	 

	 
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		fully paid and non-assessable, free and
		clear of all claims, liens, pledges and encumbrances of any kind.
	 

	 
		(d) Borrowers and Guarantors, on a
		consolidated basis, will be Solvent after the Effective Date, the creation of
		the Obligations, the security interests of Agent and the other transaction
		contemplated hereunder.
	 

	 
		8.13 Labor Disputes.
	 

	 
		(a) Set forth on Schedule 8.13 to the
		Information Certificate is a list (including dates of termination) of all
		collective bargaining or similar agreements between or applicable to each
		Borrower and Guarantor and any union, labor organization or other bargaining
		agent in respect of the employees of any Borrower or Guarantor on the date
		hereof.
	 

	 
		(b) There is (i) no significant unfair labor
		practice complaint pending against any Borrower or Guarantor or, to the best of
		any Borrower’s or Guarantor’s knowledge, threatened against it,
		before the National Labor Relations Board, and no significant grievance or
		significant arbitration proceeding arising out of or under any collective
		bargaining agreement is pending on the date hereof against any Borrower or
		Guarantor or, to best of any Borrower’s or Guarantor’s knowledge,
		threatened against it, and (ii) no significant strike, labor dispute, slowdown
		or stoppage is pending against any Borrower or Guarantor or, to the best of any
		Borrower’s or Guarantor’s knowledge, threatened against any Borrower
		or Guarantor.
	 

	 
		8.14 Restrictions on Subsidiaries. Except for restrictions contained in this Agreement or
		any other agreement with respect to Indebtedness of any Borrower or Guarantor
		permitted hereunder as in effect on the date hereof, there are no contractual
		or consensual restrictions on any Borrower or Guarantor or any of its
		Subsidiaries which prohibit or otherwise restrict (a) the transfer of cash or
		other assets (i) between any Borrower or Guarantor and any of its or their
		Subsidiaries or (ii) between any Subsidiaries of any Borrower or Guarantor or
		(b) the ability of any Borrower or Guarantor or any of its or their
		Subsidiaries to incur Indebtedness or grant security interests to Agent or any
		Lender in the Collateral.
	 

	 
		8.15 Material Contracts. Schedule 8.15 to the Information Certificate sets
		forth all Material Contracts to which any Borrower or Guarantor is a party or
		is bound as of the date hereof. Borrowers and Guarantors have delivered true,
		correct and complete copies of such Material Contracts to Agent on or before
		the date hereof. Borrowers and Guarantors are not in breach or in default in
		any material respect of or under any Material Contract and have not received
		any notice of the intention of any other party thereto to terminate any
		Material Contract.
	 

	 
		8.16 Payable Practices. Each Borrower and Guarantor have not made any material
		change in the historical accounts payable practices from those in effect
		immediately prior to the date hereof.
	 

	 
		8.17 Interrelated Businesses. Borrowers and Guarantors make up a related
		organization of various entities constituting one single and economic
		enterprise so that Borrowers and Guarantor share an identity of interests such
		that any benefit received by any one of them benefits the others. Each Borrower
		and Guarantor renders services to or for the benefit of the other Borrowers
		and/or Guarantors, as the case may be, purchases or sells and supplies
	 

	 
		 
	 

	 
		 
	 

	 
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		goods to or from or for the benefit of the
		other Borrowers and Guarantors (including, without limitation, the payment by
		Borrowers and Guarantors of Indebtedness of the other Borrowers and Guarantors)
		and provide administrative, marketing, payroll and management services to or
		for the benefit of the other Borrowers and Guarantors. Borrowers and Guarantors
		have centralized accounting and legal services, and common officers and
		directors.
	 

	 
		8.18 Accuracy and Completeness of Information. All information furnished by or on behalf of any
		Borrower or Guarantor in writing to Agent or any Lender in connection with this
		Agreement or any of the other Financing Agreements or any transaction
		contemplated hereby or thereby, including all information on the Information
		Certificate is true and correct in all material respects on the date as of
		which such information is dated or certified and does not omit any material
		fact necessary in order to make such information not misleading. No event or
		circumstance has occurred which has had or could reasonably be expected to have
		a Material Adverse Affect, which has not been fully and accurately disclosed to
		Agent in writing prior to the date hereof.
	 

	 
		8.19 Survival
		of Warranties; Cumulative. All
		representations and warranties contained in this Agreement or any of the other
		Financing Agreements shall survive the execution and delivery of this Agreement
		and shall be deemed to have been made again to Agent and Lenders on the date of
		each additional borrowing or other credit accommodation hereunder and shall be
		conclusively presumed to have been relied on by Agent and Lenders regardless of
		any investigation made or information possessed by Agent or any Lender. The
		representations and warranties set forth herein shall be cumulative and in
		addition to any other representations or warranties which any Borrower or
		Guarantor shall now or hereafter give, or cause to be given, to Agent or any
		Lender.
	 

	 
		SECTION 9. AFFIRMATIVE AND NEGATIVE
		COVENANTS
	 

	 
		9.1 Maintenance of Existence.
	 

	 
		(a) Each Borrower and Guarantor shall, at
		all times, to preserve, renew and keep in full force and effect its corporate
		existence and rights and franchises with respect thereto and maintain in full
		force and effect all licenses, trademarks, tradenames, approvals,
		authorizations, leases, contracts and Permits necessary to carry on the
		business as presently or proposed to be conducted, except as permitted in
		Section 9.7 hereto. 
	 

	 
		(b) No Borrower or Guarantor shall change
		its name unless each of the following conditions is satisfied: (i) Agent shall
		have received not less than thirty (30) days prior written notice from
		Administrative Borrower of such proposed change in its corporate name, which
		notice shall accurately set forth the new name; and (ii) Agent shall have
		received a copy of the amendment to the Certificate of Incorporation of such
		Borrower or Guarantor providing for the name change certified by the Secretary
		of State of the jurisdiction of incorporation or organization of such Borrower
		or Guarantor as soon as it is available.
	 

	 
		(c) No Borrower or Guarantor shall change
		its chief executive office or its mailing address or organizational
		identification number (or if it does not have one, shall not acquire one)
		unless Agent shall have received not less than thirty (30) days’ prior
		written notice
	 

	 
		 
	 

	 
		 
	 

	 
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		from Administrative Borrower of such
		proposed change, which notice shall set forth such information with respect
		thereto as Agent may require and Agent shall have received such agreements as
		Agent may reasonably require in connection therewith. No Borrower or Guarantor
		shall change its type of organization, jurisdiction of organization or other
		legal structure.
	 

	 
		9.2 New Collateral Locations. Each Borrower and Guarantor may only open any new
		location within the continental United States provided such Borrower or
		Guarantor (a) gives Agent twenty (20) days prior written notice of the intended
		opening of any such new location (or as soon as practically possible but in any
		event no later than five (5) days after Borrower or any Collateral is located
		at such location) and (b) executes and delivers, or causes to be executed and
		delivered, to Agent such agreements, documents, and instruments as Agent may
		deem reasonably necessary or desirable to protect its interests in the
		Collateral at such location.
	 

	 
		9.3 Compliance with Laws, Regulations, Etc.
	 

	 
		(a) Each Borrower and Guarantor shall, and
		shall cause each Subsidiary to, at all times, comply in all material respects
		with all laws, rules, regulations, licenses, approvals, orders and other
		Permits applicable to it and duly observe all requirements of any foreign,
		Federal, State or local Governmental Authority, including ERISA, the Code, the
		Occupational Safety and Health Act of 1970, as amended, the Fair Labor
		Standards Act of 1938, as amended, and all statutes, rules, regulations,
		orders, permits and stipulations relating to environmental pollution and
		employee health and safety, including all of the Environmental Laws.
	 

	 
		(b) Borrowers and Guarantors shall give
		written notice to Agent immediately upon any Borrower’s or
		Guarantor’s receipt of any notice of, or any Borrower’s or
		Guarantor’s otherwise obtaining knowledge of, (i) the occurrence of any
		event involving the release, spill or discharge, threatened or actual, of any
		Hazardous Material or (ii) any investigation, proceeding, complaint, order,
		directive, claims, citation or notice with respect to: (A) any non-compliance
		with or violation of any Environmental Law by any Borrower or Guarantor or (B)
		the release, spill or discharge, threatened or actual, of any Hazardous
		Material other than in the ordinary course of business and other than as
		permitted under any applicable Environmental Law, in each case, which has or
		would reasonably be expected to have a Material Adverse Effect. Copies of all
		environmental surveys, audits, assessments, feasibility studies and results of
		remedial investigations shall be promptly furnished, or caused to be furnished,
		by such Borrower or Guarantor to Agent. Each Borrower and Guarantor shall take
		prompt action to respond to any material non-compliance with any of the
		Environmental Laws and shall regularly report to Agent on such response.

	 

	 
		(c) Without limiting the generality of the
		foregoing, whenever Agent reasonably determines that there is non-compliance,
		or any condition which requires any action by or on behalf of any Borrower or
		Guarantor in order to avoid any non-compliance, with any Environmental Law,
		Borrowers shall, at Agent’s request and Borrowers’ expense: (i) cause
		an independent environmental engineer reasonably acceptable to Agent to conduct
		such tests of the site where non-compliance or alleged non-compliance with such
		Environmental Laws has occurred as to such non-compliance and prepare and
		deliver to Agent a report as to such non-compliance setting forth the results
		of such tests, a proposed plan for responding to any
	 

	 
		 
	 

	 
		 
	 

	 
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		environmental problems described therein,
		and an estimate of the costs thereof and (ii) provide to Agent a supplemental
		report of such engineer whenever the scope of such non-compliance, or such
		Borrower’s or Guarantor’s response thereto or the estimated costs
		thereof, shall change in any material respect.
	 

	 
		(d) Each Borrower and Guarantor shall
		indemnify and hold harmless Agent and Lenders and their respective directors,
		officers, employees, agents, invitees, representatives, successors and assigns,
		from and against any and all losses, claims, damages, liabilities, costs, and
		expenses (including reasonable attorneys’ fees and expenses) directly or
		indirectly arising out of or attributable to the use, generation, manufacture,
		reproduction, storage, release, threatened release, spill, discharge, disposal
		or presence of a Hazardous Material, including the costs of any required or
		necessary repair, cleanup or other remedial work with respect to any property
		of any Borrower or Guarantor and the preparation and implementation of any
		closure, remedial or other required plans. All representations, warranties,
		covenants and indemnifications in this Section 9.3 shall survive the payment of
		the Obligations and the termination of this Agreement.
	 

	 
		9.4 Payment of Taxes and Claims. Except to the extent discharged under the Plan of
		Reorganization or to the extent the Plan of Reorganization provides that such
		taxes, assessments, contributions or charges are not required to be paid when
		due, each Borrower and Guarantor shall, and shall cause any Subsidiary to, duly
		pay and discharge all taxes, assessments, contributions and governmental
		charges upon or against it or its properties or assets, except for taxes the
		validity of which are being contested in good faith by appropriate proceedings
		diligently pursued and available to such Borrower, Guarantor or Subsidiary, as
		the case may be, and with respect to which adequate reserves have been set
		aside on its books. Each Borrower and Guarantor shall be liable for any tax or
		penalties imposed on Agent or any Lender as a result of the financing
		arrangements provided for herein and each Borrower and Guarantor agrees to
		indemnify and hold Agent harmless with respect to the foregoing, and to repay
		to Agent, for the benefit of Lenders, on demand the amount thereof, and until
		paid by such Borrower or Guarantor such amount shall be added and deemed part
		of the Loans, provided, that, nothing contained herein shall be construed to
		require any Borrower or Guarantor to pay any income or franchise taxes
		attributable to the income of Lenders from any amounts charged or paid
		hereunder to Lenders. The foregoing indemnity shall survive the payment of the
		Obligations and the termination of this Agreement.
	 

	 
		9.5 Insurance. Each
		Borrower and Guarantor shall, and shall cause any Subsidiary to, at all times,
		maintain with financially sound and reputable insurers insurance with respect
		to the Collateral against loss or damage and all other insurance of the kinds
		and in the amounts customarily insured against or carried by corporations of
		established reputation engaged in the same or similar businesses and similarly
		situated. Said policies of insurance shall be reasonably satisfactory to Agent
		as to form, amount and insurer. Borrowers and Guarantors shall furnish
		certificates, policies or endorsements to Agent as Agent shall reasonably
		require as proof of such insurance, and, if any Borrower or Guarantor fails to
		do so, Agent is authorized, but not required, to obtain such insurance at the
		expense of Borrowers. All policies shall provide for at least thirty (30) days
		prior written notice to Agent of any cancellation or reduction of coverage and
		that Agent may act as attorney for each Borrower and Guarantor in obtaining,
		and at any time an Event of Default exists or has occurred and is continuing,
		adjusting, settling, amending
	 

	 
		 
	 

	 
		 
	 

	 
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		and canceling such insurance. Borrowers and
		Guarantors shall cause Agent to be named as a loss payee and an additional
		insured (but without any liability for any premiums) under such insurance
		policies and Borrowers and Guarantors shall obtain non-contributory
		lender’s loss payable endorsements to all insurance policies in form and
		substance satisfactory to Agent. Such lender’s loss payable endorsements
		shall specify that the proceeds of such insurance shall be payable to Agent as
		its interests may appear and further specify that Agent and Lenders shall be
		paid regardless of any act or omission by any Borrower, Guarantor or any of its
		or their Affiliates. Without limiting any other rights of Agent or Lenders, any
		insurance proceeds received by Agent at any time may be applied to payment of
		the Obligations, whether or not then due, in any order and in such manner as
		Agent and Required Lenders may determine. Upon application of such proceeds to
		the Loans, Loans may be available subject and pursuant to the terms hereof to
		be used for the costs of repair or replacement of the Collateral lost or
		damages resulting in the payment of such insurance proceeds.
	 

	 
		9.6 Financial Statements and Other
		Information.
	 

	 
		(a) Each Borrower and Guarantor shall, and
		shall cause any Subsidiary to, keep proper books and records in which true and
		complete entries shall be made of all dealings or transactions of or in
		relation to the Collateral and the business of such Borrower, Guarantor and its
		Subsidiaries in accordance with GAAP. Borrowers and Guarantors shall promptly
		furnish to Agent and Lenders all such financial and other information as Agent
		shall reasonably request relating to the Collateral and the assets, business
		and operations of Borrowers and Guarantors, and Borrower shall notify the
		auditors and accountants of Borrowers and Guarantors that Agent is authorized
		to obtain such information directly from them. Without limiting the foregoing,
		Borrowers and Guarantors shall furnish or cause to be furnished to Agent (with
		copies to sent to Lenders by Agent), the following: (i) within forty-five (45)
		days (or within fifty (50) days if such fiscal month is the end of a fiscal
		quarter, if Borrowers have received a filing extension from the Securities and
		Exchange Commission with respect to the filing of its quarterly report for that
		period) after the end of each fiscal month, unaudited consolidated financial
		statements and unaudited consolidating financial statements of Parent and its
		Subsidiaries (including in each case balance sheets, statements of income and
		loss, statements of cash flow, and statements of shareholders’ equity),
		all in reasonable detail, fairly presenting the financial position and the
		results of the operations of Parent and its Subsidiaries as of the end of and
		through such fiscal month, certified to be correct by the chief financial
		officer of Parent, subject to normal year-end adjustments and no footnotes and
		accompanied by a compliance certificate substantially in the form of Exhibit C
		hereto, along with a schedule in a form satisfactory to Agent of the
		calculations used in determining, as of the end of such month, whether
		Borrowers and Guarantors are in compliance with the covenants set forth in
		Sections 9.17 of this Agreement for such month and (ii) within ninety (90)
		days (or within 105 days, if the Borrowers have received a filing extension
		from the Securities and Exchange Commission with respect to their annual
		report) after the end of each fiscal year, audited consolidated financial
		statements and unaudited consolidating financial statements of Parent and its
		Subsidiaries (including in each case balance sheets, statements of income and
		loss, statements of cash flow, and statements of shareholders’ equity),
		and the accompanying notes thereto, all in reasonable detail, fairly presenting
		the financial position and the results of the operations of Parent and its
		Subsidiaries as of the end of and for such fiscal year, together with the
		unqualified opinion of independent certified public accountants with respect to
		the audited consolidated
	 

	 
		 
	 

	 
		 
	 

	 
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		financial statements, which accountants
		shall be an independent accounting firm selected by Borrowers and acceptable to
		Agent, that such audited consolidated financial statements have been prepared
		in accordance with GAAP, and present fairly the results of operations and
		financial condition of Parent and its Subsidiaries as of the end of and for the
		fiscal year then ended.
	 

	 
		(b) Borrowers and Guarantors shall promptly
		notify Agent in writing of the details of (i) any loss, damage, investigation,
		action, suit, proceeding or claim relating to Collateral having a value of more
		than $500,000 or which if adversely determined would result in any material
		adverse change in any Borrower’s or Guarantor’s business, properties,
		assets, goodwill or condition, financial or otherwise, (ii) any Material
		Contract being terminated or amended or any new Material Contract entered into
		(in which event Borrowers and Guarantors shall provide Agent with a copy of
		such Material Contract), (iii) any order, judgment or decree in excess of
		$1,000,000 shall have been entered against any Borrower or Guarantor or any of
		its or their properties or assets (other than any judgment for the payment of
		money to the extent covered by insurance), (iv) any notification of a material
		violation of laws or regulations received by any Borrower or Guarantor, (v) any
		ERISA Event, and (vi) the occurrence of any Default or Event of Default.

	 

	 
		(c) Borrowers and Guarantors shall promptly
		after the sending or filing thereof furnish or cause to be furnished to Agent
		copies of all reports which any Borrower or Guarantor sends to its stockholders
		generally and copies of all reports and registration statements which any
		Borrower or Guarantor files with the Securities and Exchange Commission, any
		national securities exchange or the National Association of Securities Dealers,
		Inc.
	 

	 
		(d) Administrative Borrower shall furnish or
		cause to be furnished to Agent such budgets, forecasts, projections and other
		information respecting the Collateral and the business of Borrowers and
		Guarantors, as Agent may, from time to time, reasonably request. Agent is
		hereby authorized to deliver a copy of any financial statement or any other
		information relating to the business of Borrowers and Guarantors to any court
		or other Governmental Authority or to any Lender or Participant or prospective
		Lender or Participant or any Affiliate of any Lender or Participant. Each
		Borrower and Guarantor hereby irrevocably authorizes and directs all
		accountants or auditors to deliver to Agent, at Borrowers’ expense, copies
		of the financial statements of any Borrower and Guarantor and any reports or
		management letters prepared by such accountants or auditors on behalf of any
		Borrower or Guarantor and to disclose to Agent and Lenders such information as
		they may have regarding the business of any Borrower and Guarantor. Any
		documents, schedules, invoices or other papers delivered to Agent or any Lender
		may be destroyed or otherwise disposed of by Agent or such Lender one (1) year
		after the same are delivered to Agent or such Lender, except as otherwise
		designated by Administrative Borrower to Agent or such Lender in
		writing.
	 

	 
		9.7 Sale of Assets, Consolidation, Merger, Dissolution,
		Etc. Each Borrower and Guarantor shall
		not, and shall not permit any Subsidiary to, directly or indirectly, 
	 

	 
		(a) merge into or with or consolidate with
		any other Person or permit any other Person to merge into or with or
		consolidate with it except that any wholly-owned Subsidiary of any Borrower may
		merge with and into or consolidate with any other wholly-
	 

	 
		 
	 

	 
		 
	 

	 
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		owned Subsidiary of Borrower, provided,
		that, each of the following conditions is satisfied as determined by Agent in
		good faith: (i) Agent shall have received not less than ten (10) Business
		Days’ prior written notice of the intention of such Subsidiaries to so
		merge or consolidate, which notice shall set forth in reasonable detail
		satisfactory to Agent, the persons that are merging or consolidating, which
		person will be the surviving entity, the locations of the assets of the persons
		that are merging or consolidating, and the material agreements and documents
		relating to such merger or consolidation, (ii) Agent shall have received such
		other information with respect to such merger or consolidation as Agent may
		reasonably request, (iii) as of the effective date of the merger or
		consolidation and after giving effect thereto, no Default or Event of Default
		shall exist or have occurred, (iv) Agent shall have received, true, correct and
		complete copies of all agreements, documents and instruments relating to such
		merger or consolidation, including, but not limited to, the certificate or
		certificates of merger to be filed with each appropriate Secretary of State
		(with a copy as filed promptly after such filing), (v) the surviving
		corporation shall be a Borrower and expressly confirm, ratify and assume the
		Obligations and the Financing Agreements to which it is a party in writing, in
		form and substance satisfactory to Agent, and Borrowers and Guarantors shall
		execute and deliver such other agreements, documents and instruments as Agent
		may request in connection therewith;
	 

	 
		(b) sell, issue, assign, lease, license,
		transfer, abandon or otherwise dispose of any Capital Stock or Indebtedness to
		any other Person or any of its assets to any other Person, except for
	 

	 
		(i) sales of Inventory in the ordinary
		course of business,
	 

	 
		(ii) transfers of vehicles from any Borrower
		or Guarantor to any other Borrower consistent with current practices in effect
		on the date hereof, and provided, that, any such transfer is effected subject
		to the existing lien on such vehicle in favor of Agent and Lenders,
	 

	 
		(iii) the sale, lease or other disposition
		of worn-out or obsolete Equipment or Equipment no longer used or useful in the
		business of any Borrower or Guarantor so long as any proceeds are paid to Agent
		and applied to the Obligations in accordance with Section 6.4 hereof to the
		extent Obligations are outstanding;
	 

	 
		(iv) the sublease(s) from time to time
		entered into by Borrowers, as lessors, in respect of the Real Property located
		at 3 North Street, Staten Island, New York; and
	 

	 
		(v) the issuance and sale by any Borrower or
		Guarantor of Capital Stock of such Borrower or Guarantor after the date hereof;
		provided, that, (A) Agent shall have received not less than ten (10) Business
		Days’ prior written notice of such issuance and sale by such Borrower or
		Guarantor, which notice shall specify the parties to whom such shares are to be
		sold, the terms of such sale, the total amount which it is anticipated will be
		realized from the issuance and sale of such stock and the Net Cash Proceeds
		which it is anticipated will be received by such Borrower or Guarantor from
		such sale, (B) such Borrower or Guarantor shall not be required to pay any cash
		dividends or repurchase or redeem such Capital Stock or make any other payments
		in respect thereof, except as otherwise permitted in Section 9.11 hereof, (C)
		the terms of such Capital Stock, and the terms and conditions of the purchase
		and sale
	 

	 
		 
	 

	 
		 
	 

	 
		67
	 

	 
		 
	 

	 
	 

	 

	 
		thereof, shall not include any terms that
		include any limitation on the right of any Borrower to request or receive Loans
		or Letter of Credit Accommodations or the right of any Borrower and Guarantor
		to amend or modify any of the terms and conditions of this Agreement or any of
		the other Financing Agreements or otherwise in any way relate to or affect the
		arrangements of Borrowers and Guarantors with Agent and Lenders or are more
		restrictive or burdensome to any Borrower or Guarantor than the terms of any
		Capital Stock in effect on the date hereof, (D) at least, eighty-five (85%)
		percent of the consideration for such sale, is in the form of cash or cash
		equivalents, (E) all of the proceeds of the sale and issuance of such Capital
		Stock shall be paid to Agent for application to the Obligations in such order
		and manner as Agent and Required Lenders may determine or shall be used to
		redeem the Senior Secured Notes as permitted under Section 9.9(f)(vii) hereof
		and (F) as of the date of such issuance and sale and after giving effect
		thereto, no Default or Event of Default shall exist or have occurred, provided
		that the foregoing conditions shall not apply to the issuance of Capital Stock
		pursuant to the Warrants; 
	 

	 
		(vi) the issuance by Parent of Capital Stock
		pursuant to the terms of the Warrants (as in effect on the date hereof); and
		
	 

	 
		(vii) wind up, liquidate or dissolve,
		except, that, any Inactive Subsidiary may wind up, liquidate or dissolve,
		provided, that, each of the following conditions is satisfied as determined by
		Agent: (i) no Borrower or Obligor shall assume any obligations or liabilities
		as a result of such winding up, liquidation or dissolution, or otherwise become
		liable in respect of any obligations or liabilities of the Person which is
		winding up, liquidating or dissolving, (ii) all of the assets and properties of
		such Person which is winding up, liquidating or dissolving shall be promptly
		distributed to its shareholders or partners, as the case may be, or validly
		transferred and assigned to any Borrower free and clear of all claims, liens,
		pledges and encumbrances of any kind, and (iii) on the date of and after giving
		effect to any such winding-up, dissolution or liquidation, no Event of Default
		shall exist or have occurred; and
	 

	 
		(c) agree to do any of the foregoing.

	 

	 
		9.8 Encumbrances.
		Each Borrower and Guarantor shall not, and shall not permit any Subsidiary to,
		create, incur, assume or suffer to exist any security interest, mortgage,
		pledge, lien, charge or other encumbrance of any nature whatsoever on any of
		its assets or properties, including the Collateral, or file or permit the
		filing of, or permit to remain in effect, any financing statement or other
		similar notice of any security interest or lien with respect to any such assets
		or properties, except: 
	 

	 
		(a) the security interests and liens of
		Agent for itself and the benefit of each of the other Secured Parties; 
	 

	 
		(b) liens securing the payment of taxes,
		assessments or other governmental charges or levies either not yet overdue or
		the validity of which are being contested in good faith by appropriate
		proceedings diligently pursued and available to such Borrower, or Guarantor or
		Subsidiary, as the case may be and with respect to which adequate reserves have
		been set aside on its books;
	 

	 
		 
	 

	 
		 
	 

	 
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		(c) non-consensual statutory liens (other
		than liens securing the payment of taxes) arising in the ordinary course of
		such Borrower’s, Guarantor’s or Subsidiary’s business to the
		extent: (i) such liens secure Indebtedness which is not overdue or (ii) such
		liens secure Indebtedness relating to claims or liabilities which are fully
		insured and being defended at the sole cost and expense and at the sole risk of
		the insurer (subject to deductibles) or being contested in good faith by
		appropriate proceedings diligently pursued and available to such Borrower,
		Guarantor or such Subsidiary, in each case prior to the commencement of
		foreclosure or other similar proceedings and with respect to which adequate
		reserves have been set aside on its books; 
	 

	 
		(d) zoning restrictions, easements,
		licenses, covenants and other restrictions affecting the use of Real Property
		which do not interfere in any material respect with the use of such Real
		Property or ordinary conduct of the business of such Borrower, Guarantor or
		such Subsidiary as presently conducted thereon or materially impair the value
		of the Real Property which may be subject thereto; 
	 

	 
		(e) purchase money security interests in
		Equipment (including Capital Leases) and purchase money mortgages on Real
		Property to secure Indebtedness permitted under Section 9.9(b) hereof;
		
	 

	 
		(f) pledges and deposits of cash by any
		Borrower or Guarantor after the date hereof in the ordinary course of business
		in connection with the payment of deductibles in respect of automobile
		liability insurance, workers’ compensation, unemployment insurance and
		other types of social security benefits consistent with the current practices
		of such Borrower or Guarantor as of the date hereof;
	 

	 
		(g) pledges and deposits of cash by any
		Borrower or Guarantor after the date hereof to secure the performance of
		tenders, bids, leases, trade contracts (other than for the repayment of
		Indebtedness), statutory obligations and other similar obligations in each case
		in the ordinary course of business consistent with the current practices of
		such Borrower or Guarantor as of the date hereof; provided, that, in connection
		with any performance bonds issued by a surety or other person, the issuer of
		such bond shall have waived in writing any rights in or to, or other interest
		in, any of the Collateral in an agreement, in form and substance satisfactory
		to Agent;
	 

	 
		(h) liens arising from (i) operating leases
		and the precautionary UCC financing statement filings in respect thereof and
		(ii) equipment or other materials which are not owned by any Borrower or
		Guarantor located on the premises of such Borrower or Guarantor (but not in
		connection with, or as part of, the financing thereof) from time to time in the
		ordinary course of business and consistent with current practices of such
		Borrower or Guarantor and the precautionary UCC financing statement filings in
		respect thereof;
	 

	 
		(i) the security interests in and mortgages
		and liens upon the Collateral and the Rolling Stock in favor of Noteholder
		Collateral Agent to secure the Noteholder Debt, provided, that, the security
		interests in and mortgages and liens upon the Collateral (other than certain
		Real Properties of Borrowers) in favor of Noteholder Collateral Agent are and
		shall at all
	 

	 
		 
	 

	 
		 
	 

	 
		69
	 

	 
		 
	 

	 
	 

	 

	 
		times be subject and subordinate to the
		security interests, and liens in such Collateral of Agent pursuant to the terms
		of the Intercreditor Agreement;
	 

	 
		(j) judgments and other similar liens
		arising in connection with court proceedings that do not constitute an Event of
		Default, provided, that, (i) such liens are being contested in good faith and
		by appropriate proceedings diligently pursued, (ii) adequate reserves or other
		appropriate provision, if any, as are required by GAAP have been made therefor,
		(iii) a stay of enforcement of any such liens is in effect and (iv) Agent may
		establish a Reserve with respect thereto; 
	 

	 
		(k) pledges and deposits of cash by any
		Borrower or Guarantor or their respective Subsidiaries in the ordinary course
		of business in an amount not in excess of the amounts set forth in Section
		9.9(k) hereof and otherwise consistent with the current practices of such
		Borrower or Guarantor as of the date hereof to secure Indebtedness permitted
		under Section 9.9(k) hereof; and
	 

	 
		(l) the security interests and liens set
		forth on Schedule 8.4 to the Information Certificate.
	 

	 
		9.9 Indebtedness.
		Each Borrower and Guarantor shall not, and shall not permit any Subsidiary to,
		incur, create, assume, become or be liable in any manner with respect to, or
		permit to exist, any Indebtedness, or guarantee, assume, endorse, or otherwise
		become responsible for (directly or indirectly) the Indebtedness or dividends
		of any other Person, except: 
	 

	 
		(a) the Obligations;
	 

	 
		(b) (i) purchase money Indebtedness
		(including Capital Leases) existing on the date hereof and listed on Schedule
		9.9 of the Information Certificate to the extent secured by purchase money
		security interests in Equipment (including Capital Leases), so long as such
		security interests do not apply to any property of such Borrower, Guarantor or
		Subsidiary other than the Equipment so acquired, and the Indebtedness secured
		thereby does not exceed the cost of the Equipment so acquired, as the case may
		be, and (ii) purchase money Indebtedness (including Capital Leases) arising
		after the date hereof to the extent secured by purchase money security
		interests in Equipment (including Capital Leases) so long as the aggregate
		principal amount of any such Indebtedness incurred after the date hereof does
		not exceed the sum of (A) $5,000,000 plus (B) the lesser of (1) the amount
		of any purchase money Indebtedness referred to in clause (i) above which is
		repaid after the date hereof or (2) $3,500,000 outstanding at anytime, and so
		long as such security interests do not apply to any property of such Borrower,
		Guarantor or Subsidiary other than the Equipment so acquired, and the
		Indebtedness secured thereby does not exceed the cost of the Equipment so
		acquired, as the case may be; 
	 

	 
		(c) guarantees by any Borrower or Guarantor
		of the Obligations of the other Borrowers or Guarantors in favor of Agent for
		the benefit of the Secured Parties;
	 

	 
		(d) the Indebtedness of any Borrower or
		Guarantor to any other Borrower or Guarantor pursuant to loans by any Borrower
		or Guarantor permitted under Section 9.10(g) hereof;
	 

	 
		 
	 

	 
		 
	 

	 
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		(e) unsecured Indebtedness of any Borrower
		or Guarantor arising after the date hereof to any third person (but not to any
		other Borrower or Guarantor), provided, that, each of the following conditions
		is satisfied as determined by Agent: (i) such Indebtedness shall be on terms
		and conditions acceptable to Agent and shall be subject and subordinate in
		right of payment to the right of Agent and Lenders to receive the prior
		indefeasible payment and satisfaction in full payment of all of the Obligations
		pursuant to the terms of an intercreditor agreement between Agent and such
		third party, in form and substance satisfactory to Agent, (ii) Agent shall have
		received not less than ten (10) days prior written notice of the intention of
		such Borrower or Guarantor to incur such Indebtedness, which notice shall set
		forth in reasonable detail satisfactory to Agent the amount of such
		Indebtedness, the person or persons to whom such Indebtedness will be owed, the
		interest rate, the schedule of repayments and maturity date with respect
		thereto and such other information as Agent may request with respect thereto,
		(iii) Agent shall have received true, correct and complete copies of all
		agreements, documents and instruments evidencing or otherwise related to such
		Indebtedness, (iv) except as Agent may otherwise agree in writing, all of the
		proceeds of the loans or other accommodations giving rise to such Indebtedness
		shall be paid to Agent for application to the Obligations in such order and
		manner as Agent and Required Lenders may determine, (v) as of the date of
		incurring such Indebtedness and after giving effect thereto, no Default or
		Event of Default shall exist or have occurred, (vi) such Borrower and Guarantor
		shall not, directly or indirectly, (A) amend, modify, alter or change the terms
		of such Indebtedness or any agreement, document or instrument related thereto,
		except, that, such Borrower or Guarantor may, after prior written notice to
		Agent, amend, modify, alter or change the terms thereof so as to extend the
		maturity thereof, or defer the timing of any payments in respect thereof, or to
		forgive or cancel any portion of such Indebtedness (other than pursuant to
		payments thereof), or to reduce the interest rate or any fees in connection
		therewith, or (B) redeem, retire, defease, purchase or otherwise acquire such
		Indebtedness (except pursuant to regularly scheduled payments permitted
		herein), or set aside or otherwise deposit or invest any sums for such purpose,
		and (vii) Borrowers and Guarantors shall furnish to Agent all notices or
		demands in connection with such Indebtedness either received by any Borrower or
		Guarantor or on its behalf promptly after the receipt thereof, or sent by any
		Borrower or Guarantor or on its behalf concurrently with the sending thereof,
		as the case may be;
	 

	 
		(f) Indebtedness to the Noteholders
		evidenced by or arising under the Noteholder Agreements (as in effect on the
		date hereof), provided, that:
	 

	 
		(i) the principal amount of such
		Indebtedness shall not exceed $185,000,000, as provided in the Noteholder
		Agreements (as in effect on the date hereof), less the aggregate amount of all
		repayments, repurchases or redemptions thereof, whether optional or mandatory,
		in respect thereof, plus interest thereon at the rate provided in the
		Noteholder Agreements as in effect on the date hereof,
	 

	 
		(ii) this Agreement is and shall at all
		times continue to be the “Credit Agreement” as such term is defined
		in the Note Indenture (as in effect on the date hereof) and is and shall be
		entitled to all of the rights and benefits thereof under the Note
		Indenture,
	 

	 
		(iii) any lien on the Collateral securing
		such Indebtedness shall at all times be subject to the terms of the
		Intercreditor Agreement,
	 

	 
		 
	 

	 
		 
	 

	 
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		(iv) as of the date hereof, no event of
		default, or event which with notice or passage of time or both would constitute
		an event of default exists, or has occurred under the Noteholder
		Agreements,
	 

	 
		(v) Agent shall have received true, correct
		and complete copies of all of the Noteholder Agreements (including all
		amendments and supplemental indentures with respect thereto), as duly
		authorized, executed and delivered by the parties thereto,
	 

	 
		(vi) Borrowers and Guarantors shall not,
		directly or indirectly, make, or be required to make, any payments in respect
		of such Indebtedness, except, that, Borrowers and Guarantors may make (A)
		regularly scheduled payments of interest in respect of such Indebtedness when
		due in accordance with the terms of the Senior Secured Notes and the Note
		Indenture (in each case as in effect on the date hereof), (B) payments for Net
		Proceeds Offers (as defined in the Noteholder Agreements as in effect on the
		date hereof), (C) payment of fees in respect of the Noteholder Debt in
		accordance with the terms of the Noteholder Agreements (as in effect on the
		date hereof), (D) payments of principal in respect of such Indebtedness when
		scheduled to mature in accordance with the terms of the Note Indenture (as in
		effect on the date hereof), and (E) payments in respect of such Indebtedness as
		permitted under clause (vii) below,
	 

	 
		(vii) Borrowers and Guarantors shall not,
		directly or indirectly, redeem, retire, defease, purchase or otherwise acquire
		all or any part of such Indebtedness other than at maturity, or set aside or
		otherwise deposit or invest any sums for such purpose, except that Borrowers
		and Guarantors may redeem some or all of the Senior Secured Notes with the
		proceeds of the issuance and sale by any Borrower or Guarantor of Capital Stock
		of such Borrower or Guarantor as permitted under Section 9.7 hereof on the
		terms and conditions set forth in Article III of the Note Indenture (as in
		effect on the date hereof); provided,
		that, (A) Excess Availability shall have been not less
		than $10,000,000 immediately prior to and immediately after giving effect to
		such redemption, and (B) as of the date of such redemption or after giving
		effect thereto, no Default or Event of Default shall have occurred and be
		continuing,
	 

	 
		(viii) Borrowers and Guarantors shall not,
		directly or indirectly, (A) amend, modify, alter or change any of the terms of
		such Indebtedness or any of the Noteholder Agreements as in effect on the date
		hereof, to amend, modify, alter or change the terms thereof so as to do any of
		the following: (1) shorten the maturity thereof, (2) increase the principal
		amount of such Indebtedness, (3) increase the frequency of the scheduled
		payments of interest or principal in respect of such Indebtedness, (4) increase
		the interest rate or any fees in connection therewith, (5) amend the Noteholder
		Agreements to include additional assets or properties of any Borrower or
		Guarantor as collateral to secure such Indebtedness, or (6) amend the
		Noteholder Agreements to include additional events of default or modify the
		provisions thereof so as to make the terms or conditions of the Noteholder
		Agreements more burdensome or restrictive then the terms as in effect on the
		date hereof or (B) make payments of principal or redeem, retire, defease,
		purchase or otherwise acquire such Indebtedness, or set aside or otherwise
		deposit or invest any sums for such purpose, except as permitted in clauses
		(vi) and (vii) above, and
	 

	 
		(ix) Borrowers shall furnish to Agent all
		notices or demands in connection with such Indebtedness either received by any
		Borrower or Guarantor or on its behalf
	 

	 
		 
	 

	 
		 
	 

	 
		72
	 

	 
		 
	 

	 
	 

	 

	 
		promptly after the receipt thereof, or sent
		by any Borrower or Guarantor or on its behalf concurrently with the sending
		thereof, as the case may be; 
	 

	 
		(g) guarantees of any Borrower or Guarantor
		of the Indebtedness of any other Borrower or Guarantor, provided, that, such
		guaranteed Indebtedness is permitted under this Section 9.9 hereof;
	 

	 
		(h) the Indebtedness of any Borrower or
		Guarantor to a surety or other person, in connection with the issuance of any
		performance bonds issued by such person consistent with the current practices
		of such Borrower or Guarantor as of the date hereof; provided, that, the
		conditions of Section 9.8(g) hereof have, in the determination of Agent been
		satisfied;
	 

	 
		(i) the Indebtedness set forth on Schedule
		9.9 to the Information Certificate; provided, that, (i) Borrowers and
		Guarantors may only make regularly scheduled payments of principal and interest
		in respect of such Indebtedness in accordance with the terms of the agreement
		or instrument evidencing or giving rise to such Indebtedness as in effect on
		the date hereof, (ii) Borrowers and Guarantors shall not, directly or
		indirectly, (A) amend, modify, alter or change the terms of such Indebtedness
		or any agreement, document or instrument related thereto as in effect on the
		date hereof except, that, Borrowers and Guarantors may, after prior written
		notice to Agent, amend, modify, alter or change the terms thereof so as to
		extend the maturity thereof, or defer the timing of any payments in respect
		thereof, or to forgive or cancel any portion of such Indebtedness (other than
		pursuant to payments thereof), or to reduce the interest rate or any fees in
		connection therewith, or (B) redeem, retire, defease, purchase or otherwise
		acquire such Indebtedness, or set aside or otherwise deposit or invest any sums
		for such purpose, and (iii) Borrowers and Guarantors shall furnish to Agent all
		notices or demands in connection with such Indebtedness either received by any
		Borrower or Guarantor or on its behalf, promptly after the receipt thereof, or
		sent by any Borrower or Guarantor or on its behalf, concurrently with the
		sending thereof, as the case may be;
	 

	 
		(j) any Indebtedness of Borrowers,
		Guarantors or any of their respective Subsidiaries under futures or forward
		hedging contracts or similar contractual arrangements intended to protect a
		Person against fluctuations in the price of fuel used the business of Borrowers
		and Guarantors; provided, that, such arrangements are not for speculative
		purposes and are unsecured; 
	 

	 
		(k) any Indebtedness of Borrowers,
		Guarantors or any of their respective Subsidiaries in respect of the financing
		of insurance premiums incurred in the ordinary course conduct of their
		respective businesses consistent with current practices in effect on the date
		hereof, provided, that, such Indebtedness is not secured by any assets of any
		Borrower, Guarantor or their respective Subsidiaries except for cash deposits
		in an aggregate amount not in excess of the amount equal to two months’ of
		premiums in respect of the insurance policies subject to the financing;
	 

	 
		(l) any obligations and other liabilities in
		an amount not to exceed the aggregate principal amount of $10,000,000 with
		respect to letters of credit issued for the account of Borrowers, Guarantors of
		any of their respective Subsidiaries to secure Borrowers’ or
	 

	 
		 
	 

	 
		 
	 

	 
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		Guarantors’ obligations under a vehicle
		lease (other than such leases constituting Capitalized Leases); and
	 

	 
		(m) Indebtedness of any Borrower or
		Guarantor entered into in the ordinary course of business pursuant to a Hedge
		Agreement; provided, that, (i) such
		arrangements are with a Bank Product Provider, (ii) such arrangements are not
		for speculative purposes, and (iii) such Indebtedness shall be unsecured,
		except to the extent such Indebtedness constitutes part of the Obligations
		arising under or pursuant to Hedge Agreements with a Bank Product Provider that
		are secured under the terms hereof;
	 

	 
		9.10 Loans, Investments, Etc. Each Borrower and Guarantor shall not, and shall not
		permit any Subsidiary to, directly or indirectly, make any loans or advance
		money or property to any person, or invest in (by capital contribution,
		dividend or otherwise) or purchase or repurchase the Capital Stock or
		Indebtedness or all or a substantial part of the assets or property of any
		person, or form or acquire any Subsidiaries, or agree to do any of the
		foregoing, except:
	 

	 
		(a) the endorsement of instruments for
		collection or deposit in the ordinary course of business;
	 

	 
		(b) investments in cash or Cash Equivalents,
		provided, that, (i) the Excess Availability is not less than $10,000,000,
		except during the months of August and September of each calendar year, the
		Excess Availability is not less than $5,000,000, (ii) no Default or Event of
		Default exists or has occurred and is continuing, and (iii) the terms and
		conditions of Section 5.2 hereof shall have been satisfied with respect to
		the deposit account, investment account or other account in which such cash or
		Cash Equivalents are held;
	 

	 
		(c) the existing equity investments of each
		Borrower and Guarantor as of the date hereof in its Subsidiaries, provided,
		that, no Borrower or Guarantor shall have any further obligations or
		liabilities to make any capital contributions or other additional investments
		or other payments to or in or for the benefit of any of such
		Subsidiaries;
	 

	 
		(d) loans and advances by any Borrower or
		Guarantor to employees of such Borrower or Guarantor not to exceed the
		principal amount of $100,000 in the aggregate at any time outstanding for: (i)
		reasonably and necessary work-related travel or other ordinary business
		expenses to be incurred by such employee in connection with their work for such
		Borrower or Guarantor, (ii) reasonable and necessary relocation expenses of
		such employees (including home mortgage financing for relocated employees), and
		(iii) for any purpose in compliance with all applicable laws, other than the
		purposes specified in clauses (i) and (ii) above, provided, that, the principal
		amount of all such loans and advances made to employees pursuant to this clause
		(iii) does not exceed the aggregate principal amount of $50,000 at any time
		outstanding; 
	 

	 
		(e) stock or obligations issued to any
		Borrower or Guarantor by any Person (or the representative of such Person) in
		respect of Indebtedness of such Person owing to such Borrower or Guarantor in
		connection with the insolvency, bankruptcy, receivership or reorganization of
		such Person or a composition or readjustment of the debts of such Person;
		provided, that, the original of any such stock or instrument evidencing such
		obligations shall be
	 

	 
		 
	 

	 
		 
	 

	 
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		promptly delivered to Agent, upon
		Agent’s request, together with such stock power, assignment or endorsement
		by such Borrower or Guarantor as Agent may request;
	 

	 
		(f) obligations of account debtors to any
		Borrower or Guarantor arising from Accounts which are past due evidenced by a
		promissory note made by such account debtor payable to such Borrower or
		Guarantor; provided, that, promptly upon the receipt of the original of any
		such promissory note by such Borrower or Guarantor, such promissory note shall
		be endorsed to the order of Agent by such Borrower or Guarantor and promptly
		delivered to Agent as so endorsed;
	 

	 
		(g) loans, advances and investments by a
		Borrower or Guarantor to another Borrower or Guarantor after the date hereof,
		provided, that, as to all
		of such loans, (i) the Indebtedness arising pursuant to any such loan shall not
		be evidenced by a promissory note or other instrument, unless the single
		original of such note or other instrument is promptly delivered to Agent upon
		its request to hold as part of the Collateral, with such endorsement and/or
		assignment by the payee of such note or other instrument as Agent may require,
		(ii) as of the date of any such loan and after giving effect thereto, the
		Borrower or Guarantor making such loan shall be Solvent, and (iii) as of the
		date of any such loan and after giving effect thereto, no Default or Event of
		Default shall exist or have occurred and be continuing,
	 

	 
		(h) the loans and advances (other than loans
		and advances between a Borrower or Guarantor to another Borrower or Guarantor)
		set forth on Schedule 9.10 to the Information Certificate; provided, that, as
		to such loans and advances, Borrowers and Guarantors shall not, directly or
		indirectly, amend, modify, alter or change the terms of such loans and advances
		or any agreement, document or instrument related thereto and Borrowers and
		Guarantors shall furnish to Agent all notices or demands in connection with
		such loans and advances either received by any Borrower or Guarantor or on its
		behalf, promptly after the receipt thereof, or sent by any Borrower or
		Guarantor or on its behalf, concurrently with the sending thereof, as the case
		may be, and
	 

	 
		(i) the purchase by any Borrower of all of
		the Capital Stock of any Person with its chief executive office and
		substantially all of its assets in the United States, provided,
		that, each of the following conditions is satisfied as
		determined by Agent:
	 

	 
		(i) Agent shall have received not less than
		thirty (30) days’ prior written notice of the proposed acquisition and
		such information with respect thereto as Agent may request, including (A) the
		proposed date of the acquisition, (B) the name, address, jurisdiction of
		incorporation and federal employer identification number of the person whose
		Capital Stock is being purchased, (C) a list and description of the assets of
		the Person whose Capital Stock is being purchased (including the addresses of
		the locations thereof and whether such locations are owned, leased or operated
		by a thirty party, and if leased or operated by a third party, the name and
		address of the lessor or third party), and (D) the total purchase price for the
		Capital Stock to be purchased (and the terms of payment of such purchase
		price),
	 

	 
		(ii) as of the date of such purchase and
		after giving effect thereto, no Event of Default or act, condition or event
		which with notice or passage of time or both would constitute an Event of
		Default, shall exist or have occurred and be continuing,
	 

	 
		 
	 

	 
		 
	 

	 
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		(iii) promptly upon Agent’s request,
		such Borrower shall deliver, or cause to be delivered to Agent, true, correct
		and complete copies of all agreements, documents and instruments relating to
		such acquisition,
	 

	 
		(iv) promptly upon such acquisition, such
		Borrower shall cause the Person whose Capital Stock is being purchased to
		execute and deliver to Agent, in form and substance satisfactory to Agent: (A)
		an absolute and unconditional guarantee of payment of all of the Obligations,
		(B) a general security agreement granting to Agent specify a first priority
		security interest in and lien upon all of the assets and properties of such
		Person (other than as permitted under Section 9.8 hereof), (C) related UCC
		financing statements and (D) such other agreements, documents and instruments
		as Agent, may reasonably require,
	 

	 
		(v) promptly upon Agent’s request, such
		Borrower shall execute and deliver, or cause to be executed and delivered, to
		Agent such other agreements, documents and instruments in connection with such
		acquisition as Agent may reasonably request, including, without limitation, UCC
		financing statements, Collateral Access Agreements and any amendments or
		supplements hereto,
	 

	 
		(vi) the assets and properties of the Person
		whose Capital Stock is being acquired by such Borrower shall be substantially
		consistent with, and related to, the business of such Borrower as currently
		conducted as of the date hereof,
	 

	 
		(vii) the assets of the Person whose Capital
		Stock is being acquired by Borrower (and the Capital Stock) shall be free and
		clear of any security interest, mortgage, pledge, lien, or other encumbrance
		and Agent shall have received evidence satisfactory to it of the same (other
		than security interests and liens permitted under Section 9.8 hereof),
	 

	 
		(viii) the acquisition by such Borrower of
		such Capital Stock shall not violate any law or regulation or any order or
		decree of any court or Governmental Authority in any respect and shall not and
		will not conflict with or result in the breach of, or constitute a default in
		any respect under, any agreement, document or instrument to which such Borrower
		is a party or may be bound, or result in the creation or imposition of any
		lien, charge or encumbrance upon any of the property of such Borrower (other
		than as permitted under Section 9.8 hereof) or any Affiliate or violate
		any provision of the Certificate of Incorporation or By-Laws of Such Borrower;
		
	 

	 
		(ix) such purchase shall be on commercially
		reasonable prices and terms and in a bona fide arms’ length transaction
		with a person other than an Affiliate,
	 

	 
		(x) such Borrower shall not become obligated
		with respect to any Indebtedness, nor any of their property become subject to
		any security interest, mortgage, pledge, lien, charge, or other encumbrance
		pursuant to such acquisition unless Borrower could incur such Indebtedness or
		create such security interest, mortgage, pledge, lien, charge, or other
		encumbrance hereunder or under the other Financing Agreements,
	 

	 
		(xi) Agent shall have received, in form and
		substance reasonably satisfactory to Agent, (A) evidence that Agent has first
		priority valid and perfected security interests in and liens upon the assets of
		the Person whose Capital Stock is being acquired subject 
	 

	 
		 
	 

	 
		 
	 

	 
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		to any security interests and liens as
		permitted in Section 9.8 hereof, (B) all Collateral Access Agreements and other
		consents, waivers, acknowledgments and other agreements from third persons
		which Agent may reasonably deem necessary or desirable in order to permit,
		protect and perfect its security interests in and liens upon the assets of the
		Person whose Capital Stock is being acquired, (C) the agreement of the seller
		consenting to the collateral assignment by such Subsidiary of all rights and
		remedies and claims for damages of such Subsidiary relating to the Collateral
		(including, without limitation, any bulk sales indemnification) under the
		agreements, documents and instruments relating to such acquisition and (D) such
		other agreements, documents and instruments as Agent may reasonably request in
		connection therewith,
	 

	 
		(xii) as of the date of such acquisition and
		after giving effect thereto (including the payment of all costs related to such
		acquisition), the Excess Availability of Borrowers shall be not less than
		$5,500,000, and
	 

	 
		(xiii) upon the effective date of the
		acquisition of such Capital Stock by such Borrower, Agent shall have received a
		certificate duly executed and delivered by Borrower in form and substance
		reasonably satisfactory to Agent, addressing all of the conditions set forth in
		this Section 9.10(i) (as modified to refer to the applicable acquisition),
		together with all schedules thereto, with respect to the acquisition of such
		assets and the representations and warranties contained therein shall be true
		and correct in all material respects.
	 

	 
		9.11 Dividends and Redemptions. Each Borrower and Guarantor shall not, directly or
		indirectly, declare or pay any dividends on account of any shares of class of
		any Capital Stock of such Borrower or Guarantor now or hereafter outstanding,
		or set aside or otherwise deposit or invest any sums for such purpose, or
		redeem, retire, defease, purchase or otherwise acquire any shares of any class
		of Capital Stock (or set aside or otherwise deposit or invest any sums for such
		purpose) for any consideration or apply or set apart any sum, or make any other
		distribution (by reduction of capital or otherwise) in respect of any such
		shares or agree to do any of the foregoing, except that:
	 

	 
		(a) any Borrower or Guarantor may declare
		and pay such dividends or redeem, retire, defease, purchase or otherwise
		acquire any shares of any class of Capital Stock for consideration in the form
		of shares of common stock (so long as after giving effect thereto no Change of
		Control or other Default or Event of Default shall exist or occur);
	 

	 
		(b) Borrowers and Guarantors may pay
		dividends to the extent permitted in Section 9.12 hereof; 
	 

	 
		(c) any Subsidiary of a Borrower or
		Guarantor may pay dividends to a Borrower;
	 

	 
		(d) Borrowers and Guarantors may repurchase
		Capital Stock consisting of common stock held by employees pursuant to any
		employee stock ownership plan thereof upon the termination, retirement or death
		of any such employee in accordance with the provisions of such plan, provided,
		that, as to any such repurchase, each of the following conditions is satisfied:
		(i) as of the date of the payment for such repurchase and after giving effect
		thereto, no Default or Event of Default shall exist or have occurred and be
		continuing, (ii) such repurchase shall be 
	 

	 
		 
	 

	 
		 
	 

	 
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		paid with funds legally available therefor,
		(iii) such repurchase shall not violate any law or regulation or the terms of
		any indenture, agreement or undertaking to which such Borrower or Guarantor is
		a party or by which such Borrower or Guarantor or its or their property are
		bound, and (iv) the aggregate amount of all payments for such repurchases in
		any calendar year shall not exceed $500,000.
	 

	 
		9.12 Transactions with Affiliates. Each Borrower and Guarantor shall not, directly or
		indirectly: 
	 

	 
		(a) purchase, acquire or lease any property
		from, or sell, transfer or lease any property to, any officer, director or
		other Affiliate of such Borrower or Guarantor, except in the ordinary course of
		and pursuant to the reasonable requirements of such Borrower’s or
		Guarantor’s business (as the case may be) and upon fair and reasonable
		terms no less favorable to such Borrower or Guarantor than such Borrower or
		Guarantor would obtain in a comparable arm’s length transaction with an
		unaffiliated person; or
	 

	 
		(b) make any payments (whether by dividend,
		loan or otherwise) of management, consulting or other fees for management or
		similar services, or of any Indebtedness owing to any officer, employee,
		shareholder, director or any other Affiliate of such Borrower or Guarantor,
		except (i) reasonable compensation to officers, employees and directors for
		services rendered to such Borrower or Guarantor in the ordinary course of
		business, (ii) payments by any such Borrower or Guarantor to AETG for actual
		and necessary reasonable out-of-pocket legal and accounting, insurance,
		marketing, payroll and similar types of services paid for by AETG on behalf of
		such Borrower or Guarantor, in the ordinary course of their respective
		businesses or as the same may be directly attributable to such Borrower or
		Guarantor, provided, that the aggregate amount of such payments in any fiscal
		year of Parent does not exceed $250,000, (iii) payments by any such Borrower or
		Guarantor to Parent for payment of taxes by or on behalf of AETG, in accordance
		with the Tax Sharing Agreement (as in effect on the date hereof), (iv)
		management fees in an amount not to exceed $500,000 annually paid to GSCP II
		Holdings, (AE), LLC, provided,
		that, as of the date of any such payment and after giving
		effect to such payment, no Default or Event of Default has occurred and is
		continuing, (v) common insurance policies among Borrowers, Guarantors, AETG and
		their Subsidiaries in accordance with past practice in effect on the date
		hereof for which Parent is reimbursed the premiums and deductible obligations
		attributable to such Affiliates of Parent, (vi) distributions or loans and
		advances to AETG in an aggregate amount not to exceed (A) $115,000 in fiscal
		year 2007, (B) $150,000 in fiscal year 2008, (C) $157,500 in fiscal year 2009,
		(D) $165,375 in fiscal year 2010, (E) $173,644 in fiscal year 2011, and (F)
		$182,326 in fiscal year 2012, provided,
		that, as of the date of any such payment and after giving
		effect to such payment, no Default or Event of Default has occurred and is
		continuing, (vii) payments in respect of the Senior Secured Notes in accordance
		with Section 9.9(f)(vi) hereof, and (viii) payments of all accrued fees and
		interest owed to Permitted Holders as of the date hereof from the proceeds of
		the Senior Secured Notes. 
	 

	 
		9.13 Compliance with ERISA.
		Each Borrower and Guarantor shall, and shall cause
		each of its ERISA Affiliates, to: (a) maintain each Benefit Plan in compliance
		in all material respects with the applicable provisions of ERISA, the Code and
		other Federal and State law; (b) cause each Benefit Plan which is qualified
		under Section 401(a) of the Code to maintain such qualification; (c) not
		terminate any of such Benefit Plans so as to incur any material liability
		
	 

	 
		 
	 

	 
		 
	 

	 
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		to the Pension Benefit Guaranty Corporation;
		(d) not allow or suffer to exist any prohibited transaction involving any of
		such Benefit Plans or any trust created thereunder which would subject such
		Borrower, Guarantor or such ERISA Affiliate to a material tax or penalty or
		other liability on prohibited transactions imposed under Section 4975 of the
		Code or ERISA; (e)make all required contributions to any Benefit Plan which it
		is obligated to pay under Section 302 of ERISA, Section 412 of the Code or the
		terms of such Benefit Plan; (e) not allow or suffer to exist any accumulated
		funding deficiency, whether or not waived, with respect to any such Benefit
		Plan; or (f) allow or suffer to exist any occurrence of a reportable event or
		any other event or condition which presents a material risk of termination by
		the Pension Benefit Guaranty Corporation of any such Benefit Plan that is a
		single employer plan, which termination could result in any material liability
		to the Pension Benefit Guaranty Corporation.
	 

	 
		9.14 End of Fiscal Years; Fiscal Quarters. Each Borrower and Guarantor shall, for financial
		reporting purposes, cause its, and each of its Subsidiaries’ (a) fiscal
		years to end on June 30th of each year and (b) fiscal quarters to end on
		September 30th, December 31st, March 31st and June 30th of each
		year.
	 

	 
		9.15 Change in Business. Each Borrower and Guarantor shall not engage in any
		business other than the business of such Borrower or Guarantor on the date
		hereof and any business reasonably related, ancillary or complimentary to the
		business in which such Borrower or Guarantor is engaged on the date
		hereof.
	 

	 
		9.16 Limitation of Restrictions Affecting
		Subsidiaries. Each Borrower and
		Guarantor shall not, directly, or indirectly, create or otherwise cause or
		suffer to exist any encumbrance or restriction which prohibits or limits the
		ability of any Subsidiary of such Borrower or Guarantor to (a) pay dividends or
		make other distributions or pay any Indebtedness owed to such Borrower or
		Guarantor or any Subsidiary of such Borrower or Guarantor; (b) make loans or
		advances to such Borrower or Guarantor or any Subsidiary of such Borrower or
		Guarantor, (c) transfer any of its properties or assets to such Borrower or
		Guarantor or any Subsidiary of such Borrower or Guarantor; or (d) 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 encumbrances and
		restrictions arising under (i) applicable law, (ii) this Agreement and the
		Noteholder Agreements, (iii) customary provisions restricting subletting or
		assignment of any lease governing a leasehold interest of such Borrower or
		Guarantor or any Subsidiary of such Borrower or Guarantor, (iv) customary
		restrictions on dispositions of real property interests found in reciprocal
		easement agreements of such Borrower or Guarantor or any Subsidiary of such
		Borrower or Guarantor, (v) any agreement relating to permitted Indebtedness
		incurred by a Subsidiary of such Borrower or Guarantor prior to the date on
		which such Subsidiary was acquired by such Borrower or such Guarantor and
		outstanding on such acquisition date, (vi) restrictions contained in purchase
		money Indebtedness permitted under Section 9.9 hereof to the extent such
		restrictions prohibit the creation or incurrence of security interests and
		liens on the assets purchased, and (vii) the extension or continuation of
		contractual obligations in existence on the date hereof; provided, that, any
		such encumbrances or restrictions contained in such extension or continuation
		are no less favorable to Agent and Lenders than those encumbrances and
		restrictions under or pursuant to the contractual obligations so extended or
		continued.
	 

	 
		 
	 

	 
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		9.17 Minimum EBITDA.
		At the end of each calendar month (commencing with the month ending August 31,
		2007), Parent and its Subsidiaries shall have EBITDA of not less than
		$26,000,000 for the twelve (12) consecutive month period then ended;
		provided, that, (a) Parent
		and its Subsidiaries shall not be required to comply with this Section for any
		July or August of any year in which Excess Availability is equal to or greater
		than $5,000,000 at all times during such month and for any other month of any
		year in which Excess Availability is equal to or greater than $8,000,000 at all
		times during such month; (b) solely for purposes of this Section 9.17, the
		calculation of EBITDA shall not include the effects of any non-cash accounting
		adjustments for FASB 133, and (c) to the extent Parent and its Subsidiaries
		have failed to maintain the minimum EBITDA required by this Section 9.17 as of
		the end of any such calendar month, to the extent that Parent receives a cash
		capital contribution from any of its Permitted Holders or AETG no later than
		the EBITDA Capital Contribution Deadline that would if it had been received
		prior to the end of such month meant that Parent was in compliance with this
		Section 9.17, then Parent and its Subsidiaries shall be deemed to have complied
		with this Section 9.17 for such month.
	 

	 
		9.18 License Agreements. (a) Each Borrower and Guarantor shall (i) promptly and
		faithfully observe and perform all of the material terms, covenants, conditions
		and provisions of the material License Agreements to which it is a party to be
		observed and performed by it, at the times set forth therein, if any, (ii) not
		do, permit, suffer or refrain from doing anything that could reasonably be
		expected to result in a default under or breach of any of the terms of any
		material License Agreement, (iii) not cancel, surrender, modify, amend, waive
		or release any material License Agreement in any material respect or any term,
		provision or right of the licensee thereunder in any material respect, or
		consent to or permit to occur any of the foregoing; except, that, subject to
		Section 9.18(b) hereof, such Borrower or Guarantor may cancel, surrender or
		release any material License Agreement in the ordinary course of the business
		of such Borrower or Guarantor; provided, that, such Borrower or Guarantor (as
		the case may be) shall give Agent not less than thirty (30) days prior written
		notice of its intention to so cancel, surrender and release any such material
		License Agreement, (iv) give Agent prompt written notice of any material
		License Agreement entered into by such Borrower or Guarantor after the date
		hereof, together with a true, correct and complete copy thereof and such other
		information with respect thereto as Agent may request, (v) give Agent prompt
		written notice of any material breach of any obligation, or any default, by any
		party under any material License Agreement, and deliver to Agent (promptly upon
		the receipt thereof by such Borrower or Guarantor in the case of a notice to
		such Borrower or Guarantor and concurrently with the sending thereof in the
		case of a notice from such Borrower or Guarantor) a copy of each notice of
		default and every other notice and other communication received or delivered by
		such Borrower or Guarantor in connection with any material License Agreement
		which relates to the right of such Borrower or Guarantor to continue to use the
		property subject to such License Agreement, and (vi) furnish to Agent, promptly
		upon the request of Agent, such information and evidence as Agent may
		reasonably require from time to time concerning the observance, performance and
		compliance by such Borrower or Guarantor or the other party or parties thereto
		with the material terms, covenants or provisions of any material License
		Agreement.
	 

	 
		(b) Each Borrower and Guarantor will either
		exercise any option to renew or extend the term of each material License
		Agreement to which it is a party in such manner as will cause the term of such
		material License Agreement to be effectively renewed or extended for the
		
	 

	 
		 
	 

	 
		 
	 

	 
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		period provided by such option and give
		prompt written notice thereof to Agent or give Agent prior written notice that
		such Borrower or Guarantor does not intend to renew or extend the term of any
		such material License Agreement or that the term thereof shall otherwise be
		expiring, not less than sixty (60) days prior to the date of any such
		non-renewal or expiration. In the event of the failure of such Borrower or
		Guarantor to extend or renew any material License Agreement to which it is a
		party, Agent shall have, and is hereby granted, the irrevocable right and
		authority, at its option, to renew or extend the term of such material License
		Agreement, whether in its own name and behalf, or in the name and behalf of a
		designee or nominee of Agent or in the name and behalf of such Borrower or
		Guarantor, as Agent shall determine at any time that an Event of Default shall
		exist or have occurred and be continuing. Agent may, but shall not be required
		to, perform any or all of such obligations of such Borrower or Guarantor under
		any of the License Agreements, including, but not limited to, the payment of
		any or all sums due from such Borrower or Guarantor thereunder. Any sums so
		paid by Agent shall constitute part of the Obligations.
	 

	 
		9.19 After Acquired Real Property. If any Borrower or Guarantor hereafter acquires any
		Real Property, fixtures or any other property that is of the kind or nature
		described in the Mortgages and such Real Property, fixtures or other property
		is adjacent to, contiguous with or necessary or related to or used in
		connection with any Real Property then subject to a Mortgage, or if such Real
		Property is not adjacent to, contiguous with or related to or used in
		connection with such Real Property, then if such Real Property, fixtures or
		other property at any location (or series of adjacent, contiguous or related
		locations, and regardless of the number of parcels) has a fair market value in
		an amount equal to or greater than $200,000 (or if a Default or Event of
		Default exists, then regardless of the fair market value of such assets),
		without limiting any other rights of Agent or any Lender, or duties or
		obligations of any Borrower or Guarantor, promptly upon Agent’s request,
		such Borrower or Guarantor shall execute and deliver to Agent a mortgage, deed
		of trust or deed to secure debt, as Agent may determine, in form and substance
		substantially similar to the Mortgages and as to any provisions relating to
		specific state laws satisfactory to Agent and in form appropriate for recording
		in the real estate records of the jurisdiction in which such Real Property or
		other property is located granting to Agent a lien and mortgage on and security
		interest in such Real Property, fixtures or other property subject only to the
		first priority lien of the Noteholders until such time as the Noteholder Debt
		has been paid in full (and except as such Borrower or Guarantor would otherwise
		be permitted to incur hereunder or under the Mortgages or as otherwise
		consented to in writing by Agent) and such other agreements, documents and
		instruments as Agent may require in connection therewith.
	 

	 
		9.20 Senior Management. Parent shall not terminate Domenic Gatto as its Chief
		Executive Officer and President or Nathan Schlenker as its Chief Financial
		Officer, nor materially reduce their respective executive authorities, unless
		Agent shall have received at least ninety (90) days prior written notice
		thereof and a successor thereto, reasonably acceptable to Agent, is in place on
		or prior to the date of termination.
	 

	 
		9.21 Inactive Subsidiaries. Parent shall not permit any Inactive Subsidiary to own
		or hold any material assets or properties, have any Indebtedness (other than
		intercompany Indebtedness to Parent, other Borrowers or other Inactive
		Subsidiaries), grant any liens on any of its assets or conduct or engage in any
		active business or commercial activity. No Borrower or Guarantor shall,
		directly or indirectly, make any loans or advance money or property to any
		
	 

	 
		 
	 

	 
		 
	 

	 
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		Inactive Subsidiary, or invest any material
		asset in (by capital contribution, dividend or otherwise) or purchase or
		repurchase the Capital Stock or Indebtedness or any assets or property of any
		Inactive Subsidiary, or agree to do any of the foregoing.
	 

	 
		9.22 Costs and Expenses. Borrowers and Guarantors shall pay to Agent on demand
		all costs, expenses, filing fees and taxes paid or payable in connection with
		the preparation, negotiation, execution, delivery, recording, syndication,
		administration, collection, liquidation, enforcement and defense of the
		Obligations, Agent’s rights in the Collateral, this Agreement, the other
		Financing Agreements and all other documents related hereto or thereto,
		including any amendments, supplements or consents which may hereafter be
		contemplated (whether or not executed) or entered into in respect hereof and
		thereof, including: (a) all costs and expenses of filing or recording
		(including Uniform Commercial Code financing statement filing taxes and fees,
		documentary taxes, intangibles taxes and mortgage recording taxes and fees, if
		applicable); (b) costs and expenses and fees for insurance premiums,
		environmental audits, title insurance premiums, surveys, assessments,
		engineering reports and inspections, appraisal fees and search fees, costs and
		expenses of remitting loan proceeds, collecting checks and other items of
		payment, and establishing and maintaining the Blocked Accounts, together with
		Agent’s customary charges and fees with respect thereto; (c) charges, fees
		or expenses charged by any bank or issuer in connection with the Letter of
		Credit Accommodations; (d) costs and expenses of preserving and protecting the
		Collateral; (e) costs and expenses paid or incurred in connection with
		obtaining payment of the Obligations, enforcing the security interests and
		liens of Agent, selling or otherwise realizing upon the Collateral, and
		otherwise enforcing the provisions of this Agreement and the other Financing
		Agreements or defending any claims made or threatened against Agent or any
		Lender arising out of the transactions contemplated hereby and thereby
		(including preparations for and consultations concerning any such matters); (f)
		all out-of-pocket expenses and costs heretofore and from time to time hereafter
		incurred by Agent during the course of periodic field examinations of the
		Collateral and such Borrower’s or Guarantor’s operations, plus a per
		diem charge of $950 per person per day; and (g) the fees and disbursements of
		counsel (including legal assistants) to Agent (and Lenders, in connection with
		the costs and expenses set forth in clause (e) above, after the occurrence of
		an Event of Default, provided, that, Lenders select one counsel to represent
		all Lenders) in connection with any of the foregoing.
	 

	 
		9.23 Further Assurances. At the request of Agent at any time and from time to
		time, Borrowers and Guarantors shall, at their expense, duly execute and
		deliver, or cause to be duly executed and delivered, such further agreements,
		documents and instruments, and do or cause to be done such further acts as may
		be necessary or proper to evidence, perfect, maintain and enforce the security
		interests and the priority thereof in the Collateral and to otherwise
		effectuate the provisions or purposes of this Agreement or any of the other
		Financing Agreements. Agent may at any time and from time to time request a
		certificate from an officer of any Borrower or Guarantor representing that all
		conditions precedent to the making of Loans and providing Letter of Credit
		Accommodations contained herein are satisfied. In the event of such request by
		Agent, Agent and Lenders may, at Agent’s option, cease to make any further
		Loans or provide any further Letter of Credit Accommodations until Agent has
		received such certificate and, in addition, Agent has determined that such
		conditions are satisfied. 
	 

	 
		SECTION 10. EVENTS OF DEFAULT AND
		REMEDIES
	 

	 
		 
	 

	 
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		10.1 Events of Default. The occurrence or existence of any one or more of the
		following events are referred to herein individually as an “Event of
		Default”, and collectively as “Events of Default”: 
	 

	 
		(a) (i) any Borrower fails to pay any of the
		Obligations when due or (ii) any Borrower or Obligor fails to perform any of
		the covenants contained in Sections 9.3, 9.4, 9.13, 9.14, 9.15, and 9.16 of
		this Agreement and such failure shall continue for five (5) days; provided,
		that, such five (5) day period shall not apply in the case of: (A) any failure
		to observe any such covenant which is not capable of being cured at all or
		within such five (5) day period or which has been the subject of a prior
		failure within a six (6) month period or (B) an intentional breach by any
		Borrower or Obligor of any such covenant or (iii) any Borrower or Obligor fails
		to perform any of the terms, covenants, conditions or provisions contained in
		this Agreement or any of the other Financing Agreements other than those
		described in Sections 10.1(a)(i) and 10.1(a)(ii) above;
	 

	 
		(b) any representation, warranty or
		statement of fact made by any Borrower or Guarantor to Agent in this Agreement,
		the other Financing Agreements or any other written agreement, schedule,
		confirmatory assignment or otherwise shall when made or deemed made be false or
		misleading in any material respect; 
	 

	 
		(c) any Obligor revokes or terminates or
		purports to revoke or terminate or fails to perform any of the terms,
		covenants, conditions or provisions of any guarantee, endorsement or other
		agreement of such party in favor of Agent or any Lender;
	 

	 
		(d) any judgment for the payment of money is
		rendered against any Borrower or Obligor in excess of $500,000 in any one case
		or in excess of $1,000,000 in the aggregate (to the extent not covered by
		insurance where the insurer has assumed responsibility in writing for such
		judgment) and shall remain undischarged or unvacated for a period in excess of
		thirty (30) days or execution shall at any time not be effectively stayed, or
		any judgment other than for the payment of money, or injunction, attachment,
		garnishment or execution is rendered against any Borrower or Obligor or any of
		the Collateral having a value in excess of $500,000;
	 

	 
		(e) any Obligor (being a natural person or a
		general partner of an Obligor which is a partnership) dies or any Borrower or
		Obligor, which is a partnership, limited liability company, limited liability
		partnership or a corporation, dissolves or suspends or discontinues doing
		business;
	 

	 
		(f) any Borrower or Obligor makes an
		assignment for the benefit of creditors, makes or sends notice of a bulk
		transfer or calls a meeting of its creditors or principal creditors in
		connection with a moratorium or adjustment of the Indebtedness due to them;
		
	 

	 
		(g) a case or proceeding under the
		bankruptcy laws of the United States of America now or hereafter in effect or
		under any insolvency, reorganization, receivership, readjustment of debt,
		dissolution or liquidation law or statute of any jurisdiction now or hereafter
		in effect (whether at law or in equity) is filed against any Borrower or
		Obligor or all or any part of its properties and such petition or application
		is not dismissed within thirty (30) days after the date of its filing or any
		Borrower or Obligor shall file any answer admitting or not contesting 
	 

	 
		 
	 

	 
		 
	 

	 
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		such petition or application or indicates
		its consent to, acquiescence in or approval of, any such action or proceeding
		or the relief requested is granted sooner;
	 

	 
		(h) a case or proceeding under the
		bankruptcy laws of the United States of America now or hereafter in effect or
		under any insolvency, reorganization, receivership, readjustment of debt,
		dissolution or liquidation law or statute of any jurisdiction now or hereafter
		in effect (whether at a law or equity) is filed by any Borrower or Obligor or
		for all or any part of its property; 
	 

	 
		(i) any default in respect of any
		Indebtedness of any Borrower or Obligor (other than Indebtedness owing to Agent
		and Lenders hereunder), in any case in an amount in excess of $500,000, which
		default continues for more than the applicable cure period, if any, with
		respect thereto and/or is not waived in writing by the other parties thereto or
		any default by any Borrower or Obligor under any Material Contract, which
		default continues for more than the applicable cure period, if any, with
		respect thereto and/or is not waived in writing by the other parties
		thereto;
	 

	 
		(j) any material provision hereof or of any
		of the other Financing Agreements shall for any reason cease to be valid,
		binding and enforceable with respect to any party hereto or thereto (other than
		Agent) in accordance with its terms, or any such party shall challenge the
		enforceability hereof or thereof, or shall assert in writing, or take any
		action or fail to take any action based on the assertion that any provision
		hereof or of any of the other Financing Agreements has ceased to be or is
		otherwise not valid, binding or enforceable in accordance with its terms, or
		any security interest provided for herein or in any of the other Financing
		Agreements shall cease to be a valid and perfected first priority security
		interest in any of the Collateral purported to be subject thereto (except as
		otherwise permitted herein or therein);
	 

	 
		(k) an ERISA Event shall occur which results
		in or could reasonably be expected to result in liability of any Borrower in an
		aggregate amount in excess of $500,000;
	 

	 
		(l) any Change of Control without the
		consent of the Agent;
	 

	 
		(m) the indictment by any Governmental
		Authority, or as Agent may reasonably and in good faith determine, the
		threatened indictment by any Governmental Authority of any Borrower or Obligor
		of which any Borrower, Obligor or Agent receives notice, in either case, as to
		which there is a reasonable possibility of an adverse determination, in the
		good faith determination of Agent, under any criminal statute, or commencement
		or threatened commencement of criminal or civil proceedings against such
		Borrower or Obligor, pursuant to which statute or proceedings the penalties or
		remedies sought or available include forfeiture of (i) any of the Collateral
		having a value in excess of $500,000 or (ii) any other property of any Borrower
		or Guarantor which is necessary or material to the conduct of its business;
		or
	 

	 
		(n) there shall be an event of default under
		any of the other Financing Agreements.
	 

	 
		10.2 Remedies.

	 

	 
		 
	 

	 
		 
	 

	 
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		(a) At any time an Event of Default exists
		or has occurred and is continuing, Agent and Lenders shall have all rights and
		remedies provided in this Agreement, the other Financing Agreements, the UCC
		and other applicable law, all of which rights and remedies may be exercised
		without notice to or consent by any Borrower or Obligor, except as such notice
		or consent is expressly provided for hereunder or required by applicable law.
		All rights, remedies and powers granted to Agent and Lenders hereunder, under
		any of the other Financing Agreements, the UCC or other applicable law, are
		cumulative, not exclusive and enforceable, in Agent’s discretion,
		alternatively, successively, or concurrently on any one or more occasions, and
		shall include, without limitation, the right to apply to a court of equity for
		an injunction to restrain a breach or threatened breach by any Borrower or
		Obligor of this Agreement or any of the other Financing Agreements. Subject to
		Section 12 hereof, Agent may, and at the direction of the Required Lenders
		shall, at any time or times, proceed directly against any Borrower or Obligor
		to collect the Obligations without prior recourse to the Collateral.
	 

	 
		(b) Without limiting the generality of the
		foregoing, at any time an Event of Default exists or has occurred and is
		continuing, Agent may, at its option and shall upon the direction of the
		Required Lenders, (i) upon notice to Administrative Borrower, accelerate the
		payment of all Obligations and demand immediate payment thereof to Agent for
		itself and the benefit of Lenders (provided, that, upon the occurrence of any
		Event of Default described in Sections 10.1(g) and 10.1(h), all Obligations
		shall automatically become immediately due and payable), and (ii) terminate the
		Commitments and this Agreement (provided, that, upon the occurrence of any
		Event of Default described in Sections 10.1(g) and 10.1(h), the Commitments and
		any other obligation of the Agent or a Lender hereunder shall automatically
		terminate).
	 

	 
		(c) Without limiting the foregoing, at any
		time an Event of Default exists or has occurred and is continuing, Agent may,
		in its discretion, and upon the direction of the Required Lenders, shall (i)
		with or without judicial process or the aid or assistance of others, enter upon
		any premises on or in which any of the Collateral may be located and take
		possession of the Collateral or complete processing, manufacturing and repair
		of all or any portion of the Collateral, (ii) require any Borrower or Obligor,
		at Borrowers’ expense, to assemble and make available to Agent any part or
		all of the Collateral at any place and time designated by Agent, (iii) collect,
		foreclose, receive, appropriate, setoff and realize upon any and all
		Collateral, (iv) remove any or all of the Collateral from any premises on or in
		which the same may be located for the purpose of effecting the sale,
		foreclosure or other disposition thereof or for any other purpose, (v) sell,
		lease, transfer, assign, deliver or otherwise dispose of any and all Collateral
		(including entering into contracts with respect thereto, public or private
		sales at any exchange, broker’s board, at any office of Agent or
		elsewhere) at such prices or terms as Agent may deem reasonable, for cash, upon
		credit or for future delivery, with the Agent having the right to purchase the
		whole or any part of the Collateral at any such public sale, all of the
		foregoing being free from any right or equity of redemption of any Borrower or
		Obligor, which right or equity of redemption is hereby expressly waived and
		released by Borrowers and Obligors and/or (vi) terminate this Agreement. If any
		of the Collateral is sold or leased by Agent upon credit terms or for future
		delivery, the Obligations shall not be reduced as a result thereof until
		payment therefor is finally collected by Agent. If notice of disposition of
		Collateral is required by law, ten (10) days prior notice by Agent to
		Administrative Borrower designating the time and place of any public sale or
		the time after which any private sale or other intended disposition of
		Collateral is to be made, shall be deemed to be reasonable notice thereof and
		
	 

	 
		 
	 

	 
		 
	 

	 
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		Borrowers and Obligors waive any other
		notice. In the event Agent institutes an action to recover any Collateral or
		seeks recovery of any Collateral by way of prejudgment remedy, each Borrower
		and Obligor waives the posting of any bond which might otherwise be required.
		At any time an Event of Default exists or has occurred and is continuing, upon
		Agent’s request, Borrowers will either, as Agent shall specify, furnish
		cash collateral to the issuer to be used to secure and fund Agent’s
		reimbursement obligations to the issuer in connection with any Letter of Credit
		Accommodations or furnish cash collateral to Agent for the Letter of Credit
		Accommodations. Such cash collateral shall be in the amount equal to one
		hundred ten (110%) percent of the amount of the Letter of Credit Accommodations
		plus the amount of any fees and expenses payable in connection therewith
		through the end of the latest expiration date of such Letter of Credit
		Accommodations.
	 

	 
		(d) At any time or times that an Event of
		Default exists or has occurred and is continuing, Agent may, in its discretion,
		and upon the direction of the Required Lenders, Agent shall enforce the rights
		of any Borrower or Obligor against any account debtor, secondary obligor or
		other obligor in respect of any of the Accounts or other Receivables. Without
		limiting the generality of the foregoing, Agent may, in its discretion, and
		upon the direction of the Required Lenders, Agent shall at such time or times
		(i) notify any or all account debtors, secondary obligors or other obligors in
		respect thereof that the Receivables have been assigned to Agent and that Agent
		has a security interest therein and Agent may direct any or all accounts
		debtors, secondary obligors and other obligors to make payment of Receivables
		directly to Agent, (ii) extend the time of payment of, compromise, settle or
		adjust for cash, credit, return of merchandise or otherwise, and upon any terms
		or conditions, any and all Receivables or other obligations included in the
		Collateral and thereby discharge or release the account debtor or any secondary
		obligors or other obligors in respect thereof without affecting any of the
		Obligations, (iii) demand, collect or enforce payment of any Receivables or
		such other obligations, but without any duty to do so, and Agent and Lenders
		shall not be liable for any failure to collect or enforce the payment thereof
		nor for the negligence of its agents or attorneys with respect thereto and (iv)
		take whatever other action Agent may deem necessary or desirable for the
		protection of its interests and the interests of Lenders. At any time that an
		Event of Default exists or has occurred and is continuing, at Agent’s
		request, all invoices and statements sent to any account debtor shall state
		that the Accounts and such other obligations have been assigned to Agent and
		are payable directly and only to Agent and Borrowers and Obligors shall deliver
		to Agent such originals of documents evidencing the sale and delivery of goods
		or the performance of services giving rise to any Accounts as Agent may
		require. In the event any account debtor returns Inventory when an Event of
		Default exists or has occurred and is continuing, Borrowers shall, upon
		Agent’s request, hold the returned Inventory in trust for Agent, segregate
		all returned Inventory from all of its other property, dispose of the returned
		Inventory solely according to Agent’s instructions, and not issue any
		credits, discounts or allowances with respect thereto without Agent’s
		prior written consent. 
	 

	 
		(e) To the extent that applicable law
		imposes duties on Agent or any Lender to exercise remedies in a commercially
		reasonable manner (which duties cannot be waived under such law), each Borrower
		and Guarantor acknowledges and agrees that it is not commercially unreasonable
		for Agent or any Lender (i) to fail to incur expenses reasonably deemed
		significant by Agent or any Lender to prepare Collateral for disposition or
		otherwise to complete raw material or work in process into finished goods or
		other finished products for disposition, (ii) to 
	 

	 
		 
	 

	 
		 
	 

	 
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		fail to obtain third party consents for
		access to Collateral to be disposed of, or to obtain or, if not required by
		other law, to fail to obtain consents of any Governmental Authority or other
		third party for the collection or disposition of Collateral to be collected or
		disposed of, (iii) to fail to exercise collection remedies against account
		debtors, secondary obligors or other persons obligated on Collateral or to
		remove liens or encumbrances on or any adverse claims against Collateral, (iv)
		to exercise collection remedies against account debtors and other persons
		obligated on Collateral directly or through the use of collection agencies and
		other collection specialists, (v) to advertise dispositions of Collateral
		through publications or media of general circulation, whether or not the
		Collateral is of a specialized nature, (vi) to contact other persons, whether
		or not in the same business as any Borrower or Guarantor, for expressions of
		interest in acquiring all or any portion of the Collateral, (vii) to hire one
		or more professional auctioneers to assist in the disposition of Collateral,
		whether or not the collateral is of a specialized nature, (viii) to dispose of
		Collateral by utilizing Internet sites that provide for the auction of assets
		of the types included in the Collateral or that have the reasonable capability
		of doing so, or that match buyers and sellers of assets, (ix) to dispose of
		assets in wholesale rather than retail markets, (x) to disclaim disposition
		warranties, (xi) to purchase insurance or credit enhancements to insure Agent
		or Lenders against risks of loss, collection or disposition of Collateral or to
		provide to Agent or Lenders a guaranteed return from the collection or
		disposition of Collateral, or (xii) to the extent deemed appropriate by Agent,
		to obtain the services of other brokers, investment bankers, consultants and
		other professionals to assist Agent in the collection or disposition of any of
		the Collateral. Each Borrower and Guarantor acknowledges that the purpose of
		this Section is to provide non-exhaustive indications of what actions or
		omissions by Agent or any Lender would not be commercially unreasonable in the
		exercise by Agent or any Lender of remedies against the Collateral and that
		other actions or omissions by Agent or any Lender shall not be deemed
		commercially unreasonable solely on account of not being indicated in this
		Section. Without limitation of the foregoing, nothing contained in this Section
		shall be construed to grant any rights to any Borrower or Guarantor or to
		impose any duties on Agent or Lenders that would not have been granted or
		imposed by this Agreement or by applicable law in the absence of this
		Section.
	 

	 
		(f) For the purpose of enabling Agent to
		exercise the rights and remedies hereunder, each Borrower and Obligor hereby
		grants to Agent, to the extent assignable, an irrevocable, non-exclusive
		license (exercisable at any time an Event of Default shall exist or have
		occurred and for so long as the same is continuing) without payment of royalty
		or other compensation to any Borrower or Obligor, to use, assign, license or
		sublicense any of the trademarks, service-marks, trade names, business names,
		trade styles, designs, logos and other source of business identifiers and other
		Intellectual Property and general intangibles now owned or hereafter acquired
		by any Borrower or Obligor, wherever the same maybe located, including in such
		license reasonable access to all media in which any of the licensed items may
		be recorded or stored and to all computer programs used for the compilation or
		printout thereof.
	 

	 
		(g) Agent may apply the cash proceeds of
		Collateral actually received by Agent from any sale, lease, foreclosure or
		other disposition of the Collateral to payment of the Obligations, in
		accordance with Section 6.4 hereof. Borrowers and Guarantors shall remain
		liable to Agent and Lenders for the payment of any deficiency with interest at
		the highest rate provided for herein and all costs and expenses of collection
		or enforcement, including attorneys’ fees and expenses.
	 

	 
		 
	 

	 
		 
	 

	 
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		(h) Without limiting the foregoing, upon the
		occurrence of a Default or an Event of Default, (i) Agent and Lenders may, at
		Agent’s option, and upon the occurrence of an Event of Default at the
		direction of the Required Lenders, Agent and Lenders shall, without notice, (A)
		cease making Loans or arranging for Letter of Credit Accommodations or reduce
		the lending formulas or amounts of Loans and Letter of Credit Accommodations
		available to Borrowers and/or (B) terminate any provision of this Agreement
		providing for any future Loans or Letter of Credit Accommodations to be made by
		Agent and Lenders to Borrowers and (ii) Agent may, at its option, establish
		such Reserves as Agent determines, without limitation or restriction,
		notwithstanding anything to the contrary contained herein.
	 

	 
		SECTION 11. JURY TRIAL WAIVER; OTHER WAIVERS AND CONSENTS; GOVERNING
		LAW.
	 

	 
		11.1 Governing Law; Choice of Forum; Service of Process; Jury
		Trial Waiver.
	 

	 
		(a) The validity, interpretation and
		enforcement of this Agreement and the other Financing Agreements (except as
		otherwise provided therein) and any dispute arising out of the relationship
		between the parties hereto, whether in contract, tort, equity or otherwise,
		shall be governed by the internal laws of the State of New York but excluding
		any principles of conflicts of law or other rule of law that would cause the
		application of the law of any jurisdiction other than the laws of the State of
		New York.
	 

	 
		(b) Borrowers, Guarantors, Agent and Lenders
		irrevocably consent and submit to the non-exclusive jurisdiction of the Supreme
		Court of the State of New York, New York County and the United States District
		Court for the Southern District of New York, whichever Agent may elect, and
		waive any objection based on venue or forum non conveniens with respect to any
		action instituted therein arising under this Agreement or any of the other
		Financing Agreements or in any way connected with or related or incidental to
		the dealings of the parties hereto in respect of this Agreement or any of the
		other Financing Agreements or the transactions related hereto or thereto, in
		each case whether now existing or hereafter arising, and whether in contract,
		tort, equity or otherwise, and agree that any dispute with respect to any such
		matters shall be heard only in the courts described above (except that Agent
		and Lenders shall have the right to bring any action or proceeding against any
		Borrower or Guarantor or its or their property in the courts of any other
		jurisdiction which Agent deems necessary or appropriate in order to realize on
		the Collateral or to otherwise enforce its rights against any Borrower or
		Guarantor or its or their property).
	 

	 
		(c) Each Borrower and Guarantor hereby
		waives personal service of any and all process upon it and consents that all
		such service of process may be made by certified mail (return receipt
		requested) directed to its address set forth herein and service so made shall
		be deemed to be completed five (5) days after the same shall have been so
		deposited in the U.S. mails, or, at Agent’s option, by service upon any
		Borrower or Guarantor (or Administrative Borrower on behalf of such Borrower or
		Guarantor) in any other manner provided under the rules of any such courts.
		Within thirty (30) days after such service, such Borrower or Guarantor shall
		appear in answer to such process, failing which such Borrower or Guarantor
		shall be deemed in default and judgment may be entered by Agent against such
		Borrower or Guarantor for the amount of the claim and other relief
		requested.
	 

	 
		 
	 

	 
		 
	 

	 
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		(d) BORROWERS, GUARANTORS, AGENT AND LENDERS
		EACH HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR
		CAUSE OF ACTION ARISING UNDER THIS AGREEMENT OR ANY OF THE OTHER FINANCING
		AGREEMENTS OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE
		DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE OTHER
		FINANCING AGREEMENTS OR THE TRANSACTIONS RELATED HERETO OR THERETO IN EACH CASE
		WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT,
		EQUITY OR OTHERWISE. BORROWERS, GUARANTORS, AGENT AND LENDERS EACH HEREBY
		AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION
		SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT ANY BORROWER, ANY
		GUARANTOR, AGENT OR ANY LENDER MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF
		THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES
		HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.
	 

	 
		(e) Agent and Lenders shall not have any
		liability to any Borrower or Guarantor (whether in tort, contract, equity or
		otherwise) for losses suffered by such Borrower or Guarantor in connection
		with, arising out of, or in any way related to the transactions or
		relationships contemplated by this Agreement, or any act, omission or event
		occurring in connection herewith, unless it is determined by a final and
		non-appealable judgment or court order binding on Agent and such Lender, that
		the losses were the result of acts or omissions constituting gross negligence
		or willful misconduct. In any such litigation, Agent and Lenders shall be
		entitled to the benefit of the rebuttable presumption that it acted in good
		faith and with the exercise of ordinary care in the performance by it of the
		terms of this Agreement. Each Borrower and Guarantor: (i) certifies that
		neither Agent, any Lender nor any representative, agent or attorney acting for
		or on behalf of Agent or any Lender has represented, expressly or otherwise,
		that Agent and Lenders would not, in the event of litigation, seek to enforce
		any of the waivers provided for in this Agreement or any of the other Financing
		Agreements and (ii) acknowledges that in entering into this Agreement and the
		other Financing Agreements, Agent and Lenders are relying upon, among other
		things, the waivers and certifications set forth in this Section 11.1 and
		elsewhere herein and therein.
	 

	 
		11.2 Waiver of Notices. Each Borrower and Guarantor hereby expressly waives
		demand, presentment, protest and notice of protest and notice of dishonor with
		respect to any and all instruments and chattel paper, included in or evidencing
		any of the Obligations or the Collateral, and any and all other demands and
		notices of any kind or nature whatsoever with respect to the Obligations, the
		Collateral and this Agreement, except such as are expressly provided for
		herein. No notice to or demand on any Borrower or Guarantor which Agent or any
		Lender may elect to give shall entitle such Borrower or Guarantor to any other
		or further notice or demand in the same, similar or other circumstances.

	 

	 
		11.3 Amendments and Waivers.
	 

	 
		(a) Neither this Agreement nor any other
		Financing Agreement nor any terms hereof or thereof may be amended, waived,
		discharged or terminated unless such amendment, waiver, discharge or
		termination is in writing signed by the Required Lenders (or at
		Agent’s
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
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		option, by Agent with the written
		authorization of the Required Lenders), and as to amendments to any of the
		Financing Agreements to which Borrowers are a party (other than with respect to
		any provision of Section 12 hereof), by Borrowers; except, that, no such
		amendment, waiver, discharge or termination shall:
	 

	 
		(i) reduce the interest rate or any fees or
		extend the time of payment of principal, interest or any fees or reduce the
		principal amount of any Loan or Letter of Credit Accommodations, in each case
		without the consent of each Lender directly affected thereby,
	 

	 
		(ii) increase the Commitment of any Lender
		over the amount thereof then in effect or provided hereunder, in each case
		without the consent of the Lender directly affected thereby,
	 

	 
		(iii) release any Collateral or Guarantor
		(except as expressly required hereunder or under any of the other Financing
		Agreements or applicable law and except as permitted under Section 9.7 or
		Section 12.11(b) hereof), without the consent of all of Lenders, 
	 

	 
		(iv) reduce any percentage specified in the
		definition of Required Lenders, without the consent of all of Lenders,
	 

	 
		(v) consent to the assignment or transfer by
		any Borrower or Guarantor of any of their rights and obligations under this
		Agreement, without the consent of all of Lenders,
	 

	 
		(vi) amend, modify or waive any terms of
		this Section 11.3 hereof, without the consent of all of Lenders, 
	 

	 
		(vii) increase the Maximum Credit without
		the consent of each Lender; or
	 

	 
		(viii) increase the advance rates
		constituting part of the Borrowing Base, without the consent of all of
		Lenders.
	 

	 
		(b) Agent and Lenders shall not, by any act,
		delay, omission or otherwise be deemed to have expressly or impliedly waived
		any of its or their rights, powers and/or remedies unless such waiver shall be
		in writing and signed as provided herein. Any such waiver shall be enforceable
		only to the extent specifically set forth therein. A waiver by Agent or any
		Lender of any right, power and/or remedy on any one occasion shall not be
		construed as a bar to or waiver of any such right, power and/or remedy which
		Agent or any Lender would otherwise have on any future occasion, whether
		similar in kind or otherwise.
	 

	 
		(c) Notwithstanding anything to the contrary
		contained in Section 11.3(a) above, in connection with any amendment, waiver,
		discharge or termination, in the event that any Lender whose consent thereto is
		required shall fail to consent or fail to consent in a timely manner (such
		Lender being referred to herein as a “Non-Consenting Lender”), but
		the consent of any other Lenders to such amendment, waiver, discharge or
		termination that is required are obtained, if any, then Wachovia shall have the
		right, but not the obligation, at any time thereafter, and upon the exercise by
		Wachovia of such right, such Non-Consenting Lender shall have the obligation,
		to sell, assign and transfer to Wachovia or such Eligible Transferee as 

	 

	 
		 
	 

	 
		 
	 

	 
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		Wachovia may specify, the Commitment of such
		Non-Consenting Lender and all rights and interests of such Non-Consenting
		Lender pursuant thereto. Wachovia shall provide the Non-Consenting Lender with
		prior written notice of its intent to exercise its right under this Section,
		which notice shall specify on date on which such purchase and sale shall occur.
		Such purchase and sale shall be pursuant to the terms of an Assignment and
		Acceptance (whether or not executed by the Non-Consenting Lender), except that
		on the date of such purchase and sale, Wachovia, or such Eligible Transferee
		specified by Wachovia, shall pay to the Non-Consenting Lender (except as
		Wachovia and such Non-Consenting Lender may otherwise agree) the amount equal
		to: (i) the principal balance of the Loans held by the Non-Consenting Lender
		outstanding as of the close of business on the business day immediately
		preceding the effective date of such purchase and sale, plus (ii) amounts
		accrued and unpaid in respect of interest and fees payable to the
		Non-Consenting Lender to the effective date of the purchase (but in no event
		shall the Non-Consenting Lender be deemed entitled to any early termination
		fee), minus (iii) the amount of the closing fee received by the Non-Consenting
		Lender pursuant to the terms hereof or of any of the other Financing Agreements
		multiplied by the fraction, the numerator of which is the number of months
		remaining in the then current term of the Credit Facility and the denominator
		of which is the number of months in the then current term thereof. Such
		purchase and sale shall be effective on the date of the payment of such amount
		to the Non-Consenting Lender and the Commitment of the Non-Consenting Lender
		shall terminate on such date.
	 

	 
		(d) The consent of Agent shall be required
		for any amendment, waiver or consent affecting the rights or duties of Agent
		hereunder or under any of the other Financing Agreements, in addition to the
		consent of the Lenders otherwise required by this Section and the exercise by
		Agent of any of its rights hereunder with respect to Reserves or Eligible
		Accounts shall not be deemed an amendment to the advance rates provided for in
		this Section 11.3.
	 

	 
		(e) The consent of Agent and a Bank Product
		Provider that is providing Bank Products and has outstanding any such Bank
		Products at such time that are secured hereunder shall be required for any
		amendment to the priority of payment of Obligations arising under or pursuant
		to any Hedge Agreements of a Borrower or Guarantor or other Bank Products as
		set forth in Section 6.4(a) hereof.
	 

	 
		11.4 Waiver of Counterclaims. Each Borrower and Guarantor waives all rights to
		interpose any claims, deductions, setoffs or counterclaims of any nature (other
		then compulsory counterclaims) in any action or proceeding with respect to this
		Agreement, the Obligations, the Collateral or any matter arising therefrom or
		relating hereto or thereto.
	 

	 
		11.5 Indemnification.
		Each Borrower and Guarantor shall, jointly and severally, indemnify and hold
		Agent and each Lender, and its officers, directors, agents, employees, advisors
		and counsel and their respective Affiliates (each such person being an
		“Indemnitee”), harmless from and against any and all losses, claims,
		damages, liabilities, costs or expenses (including attorneys’ fees and
		expenses) imposed on, incurred by or asserted against any of them in connection
		with any litigation, investigation, claim or proceeding commenced or threatened
		related to the negotiation, preparation, execution, delivery, enforcement,
		performance or administration of this Agreement, any other Financing
		Agreements, or any undertaking or proceeding related to any of the transactions
		contemplated hereby or any act, omission, event or transaction related or
		attendant thereto, including amounts paid in settlement, court costs, and the
		
	 

	 
		 
	 

	 
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		fees and expenses of counsel except that
		Borrowers and Guarantors shall not have any obligation under this Section 11.5
		to indemnify an Indemnitee with respect to a matter covered hereby resulting
		from the gross negligence or willful misconduct of such Indemnitee as
		determined pursuant to a final, non-appealable order of a court of competent
		jurisdiction (but without limiting the obligations of Borrowers or Guarantors
		as to any other Indemnitee). To the extent that the undertaking to indemnify,
		pay and hold harmless set forth in this Section may be unenforceable because it
		violates any law or public policy, Borrowers and Guarantors shall pay the
		maximum portion which it is permitted to pay under applicable law to Agent and
		Lenders in satisfaction of indemnified matters under this Section. To the
		extent permitted by applicable law, no Borrower or Guarantor shall assert, and
		each Borrower and Guarantor 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 of the other Financing Agreements
		or any undertaking or transaction contemplated hereby. All amounts due under
		this Section shall be payable upon demand. The foregoing indemnity shall
		survive the payment of the Obligations and the termination or non-renewal of
		this Agreement.
	 

	 
		SECTION 12. THE AGENT.
	 

	 
		12.1 Appointment, Powers and Immunities . Each Lender irrevocably designates, appoints and
		authorizes Wachovia to act as Agent hereunder and under the other Financing
		Agreements with such powers as are specifically delegated to Agent by the terms
		of this Agreement and of the other Financing Agreements, together with such
		other powers as are reasonably incidental thereto. Agent (a) shall have no
		duties or responsibilities except those expressly set forth in this Agreement
		and in the other Financing Agreements, and shall not by reason of this
		Agreement or any other Financing Agreement be a trustee or fiduciary for any
		Lender; (b) shall not be responsible to Lenders for any recitals, statements,
		representations or warranties contained in this Agreement or in any of the
		other Financing Agreements, or in any certificate or other document referred to
		or provided for in, or received by any of them under, this Agreement or any
		other Financing Agreement, or for the value, validity, effectiveness,
		genuineness, enforceability or sufficiency of this Agreement or any other
		Financing Agreement or any other document referred to or provided for herein or
		therein or for any failure by any Borrower or any Obligor or any other Person
		to perform any of its obligations hereunder or thereunder; and (c) shall not be
		responsible to Lenders for any action taken or omitted to be taken by it
		hereunder or under any other Financing Agreement or under any other document or
		instrument referred to or provided for herein or therein or in connection
		herewith or therewith, except for its own gross negligence or willful
		misconduct as determined by a final non-appealable judgment of a court of
		competent jurisdiction. Agent may employ agents and attorneys-in-fact and shall
		not be responsible for the negligence or misconduct of any such agents or
		attorneys-in-fact selected by it in good faith. Agent may deem and treat the
		payee of any note as the holder thereof for all purposes hereof unless and
		until the assignment thereof pursuant to an agreement (if and to the extent
		permitted herein) in form and substance satisfactory to Agent shall have been
		delivered to and acknowledged by Agent. The identification of Bank One, NA and
		General Electric Capital Corporation, as co- documentation agents shall not
		create any rights in favor of any of them in such capacity nor subject them to
		any duties or obligations in such capacity.
	 

	 
		 
	 

	 
		 
	 

	 
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		12.2 Reliance by Agent.
		Agent shall be entitled to rely upon any
		certification, notice or other communication (including any thereof by
		telephone, telecopy, telex, telegram or cable) believed by it to be genuine and
		correct and to have been signed or sent by or on behalf of the proper Person or
		Persons, and upon advice and statements of legal counsel, independent
		accountants and other experts selected by Agent. As to any matters not
		expressly provided for by this Agreement or any other Financing Agreement,
		Agent shall in all cases be fully protected in acting, or in refraining from
		acting, hereunder or thereunder in accordance with instructions given by the
		Required Lenders or all of Lenders as is required in such circumstance, and
		such instructions of such Agents and any action taken or failure to act
		pursuant thereto shall be binding on all Lenders.
	 

	 
		12.3 Events of Default.
	 

	 
		(a) Agent shall not be deemed to have
		knowledge or notice of the occurrence of a Default or an Event of Default or
		other failure of a condition precedent to the Loans and Letter of Credit
		Accommodations hereunder, unless and until Agent has received written notice
		from a Lender, or a Borrower specifying such Event of Default or any
		unfulfilled condition precedent, and stating that such notice is a “Notice
		of Default or Failure of Condition”. In the event that Agent receives such
		a Notice of Default or Failure of Condition, Agent shall give prompt notice
		thereof to the Lenders. Agent shall (subject to Section 12.7) take such action
		with respect to any such Event of Default or failure of condition precedent as
		shall be directed by the Required Lenders; provided, that, unless and until
		Agent shall have received such directions, Agent may (but shall not be
		obligated to) take such action, or refrain from taking such action, with
		respect to or by reason of such Event of Default or failure of condition
		precedent, as it shall deem advisable in the best interest of Lenders. Without
		limiting the foregoing, and notwithstanding the existence or the occurrence of
		and continuance of an Event of Default or any other failure to satisfy any of
		the conditions precedent set forth in Section 4 of this Agreement to the
		contrary, the Agent may, pursuant to Sections 12.8 and 12.11(a), but shall have
		no obligation to, continue to make Loans and issue or cause to be issued Letter
		of Credit Accommodations for the ratable account and risk of Lenders from time
		to time if Agent believes making such Loans or issuing or causing to be issued
		such Letter of Credit Accommodations is in the best interests of
		Lenders.
	 

	 
		(b) Except with the prior written consent of
		Agent, no Lender may assert or exercise any enforcement right or remedy in
		respect of the Loans, Letter of Credit Accommodations or other Obligations, as
		against any Borrower or Obligor or any of the Collateral or other property of
		any Borrower or Obligor.
	 

	 
		12.4 Wachovia in its Individual Capacity. With respect to its Commitment and the Loans made and
		Letter of Credit Accommodations issued or caused to be issued by it (and any
		successor acting as Agent), so long as Wachovia shall be a Lender hereunder, it
		shall have the same rights and powers hereunder as any other Lender and may
		exercise the same as though it were not acting as Agent, and the term
		“Lender” or “Lenders” shall, unless the context otherwise
		indicates, include Wachovia in its individual capacity as Lender hereunder.
		Wachovia (and any successor acting as Agent) and its Affiliates may (without
		having to account therefor to any Lender) lend money to, make investments in
		and generally engage in any kind of business with Borrowers (and any of its
		Subsidiaries or Affiliates) as if it were not acting as Agent, and
	 

	 
		 
	 

	 
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		Wachovia and its Affiliates may accept fees
		and other consideration from any Borrower or Guarantor and any of its
		Subsidiaries and Affiliates for services in connection with this Agreement or
		otherwise without having to account for the same to Lenders.
	 

	 
		12.5 Indemnification.
		Lenders agree to indemnify Agent (to the extent not reimbursed by Borrowers
		hereunder and without limiting any obligations of Borrowers hereunder) ratably,
		in accordance with their Pro Rata Shares, for any and all claims of any kind
		and nature whatsoever that may be imposed on, incurred by or asserted against
		Agent (including by any Lender) arising out of or by reason of any
		investigation in or in any way relating to or arising out of this Agreement or
		any other Financing Agreement or any other documents contemplated by or
		referred to herein or therein or the transactions contemplated hereby or
		thereby (including the costs and expenses that Agent is obligated to pay
		hereunder) or the enforcement of any of the terms hereof or thereof or of any
		such other documents, provided, that, no Lender shall be liable for any of the
		foregoing to the extent it arises from the gross negligence or willful
		misconduct of the party to be indemnified as determined by a final
		non-appealable judgment of a court of competent jurisdiction. The foregoing
		indemnity shall survive the payment of the Obligations and the termination or
		non-renewal of this Agreement.
	 

	 
		12.6 Non-Reliance on Agent and Other Lenders. Each Lender agrees that it has, independently and
		without reliance on Agent or other Lender, and based on such documents and
		information as it has deemed appropriate, made its own credit analysis of
		Borrowers and Obligors and has made its own decision to enter into this
		Agreement and that it will, independently and without reliance upon Agent or
		any other Lender, and based on such documents and information as it shall deem
		appropriate at the time, continue to make its own analysis and decisions in
		taking or not taking action under this Agreement or any of the other Financing
		Agreements. Agent shall not be required to keep itself informed as to the
		performance or observance by any Borrower or Obligor of any term or provision
		of this Agreement or any of the other Financing Agreements or any other
		document referred to or provided for herein or therein or to inspect the
		properties or books of any Borrower or Obligor. Agent will use reasonable
		efforts to provide Lenders with any information received by Agent from any
		Borrower or Obligor which is required to be provided to Lenders or deemed to be
		requested by Lenders hereunder and with a copy of any Notice of Default or
		Failure of Condition received by Agent from any Borrower or any Lender;
		provided, that, Agent shall not be liable to any Lender for any failure to do
		so, except to the extent that such failure is attributable to Agent’s own
		gross negligence or willful misconduct as determined by a final non-appealable
		judgment of a court of competent jurisdiction. Except for notices, reports and
		other documents expressly required to be furnished to Lenders by Agent
		hereunder, Agent shall not have any duty or responsibility to provide any
		Lender with any other credit or other information concerning the affairs,
		financial condition or business of any Borrower or Obligor that may come into
		the possession of Agent.
	 

	 
		12.7 Failure to Act.
		Except for action expressly required of Agent hereunder and under the other
		Financing Agreements, Agent shall in all cases be fully justified in failing or
		refusing to act hereunder and thereunder unless it shall receive further
		assurances to its satisfaction from Lenders of their indemnification
		obligations under Section 12.5 hereof against any and all liability and expense
		that may be incurred by it by reason of taking or continuing to take any such
		action.
	 

	 
		 
	 

	 
		 
	 

	 
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		12.8 Additional Loans. Agent shall not make any Revolving Loans or provide
		any Letter of Credit Accommodations to any Borrower on behalf of Lenders
		intentionally and with actual knowledge that such Revolving Loans or Letter of
		Credit Accommodations would cause the aggregate amount of the total outstanding
		Revolving Loans and Letter of Credit Accommodations to exceed the Borrowing
		Base, without the prior consent of all Lenders, except, that, Agent may make
		such additional Loans or provide such additional Letter of Credit
		Accommodations on behalf of Lenders, intentionally and with actual knowledge
		that such Revolving Loans or Letter of Credit Accommodations will cause the
		total outstanding Revolving Loans and Letter of Credit Accommodations to exceed
		the Borrowing Base, as Agent may deem necessary or advisable in its discretion,
		provided, that: (a) the total principal amount of the additional Revolving
		Loans or additional Letter of Credit Accommodations to any Borrower which Agent
		may make or provide after obtaining such actual knowledge that the aggregate
		principal amount of the Revolving Loans equal or exceed the Borrowing Bases
		plus the amount of Special Agent Advances made pursuant to Section 12.11(a)(i)
		and (ii) hereof then outstanding, shall not exceed the aggregate amount equal
		to five (5%) of the Maximum Credit and shall not cause the total principal
		amount of the Loans and Letter of Credit Accommodations to exceed the Maximum
		Credit and (b) no such additional Revolving Loan or Letter of Credit
		Accommodation shall be outstanding more than ninety (90) days after the date
		such additional Revolving Loan or Letter of Credit Accommodation is made or
		issued (as the case may be), except as the Required Lenders may otherwise
		agree. Each Lender shall be obligated to pay Agent the amount of its Pro Rata
		Share of any such additional Revolving Loans or Letter of Credit
		Accommodations.
	 

	 
		12.9 Concerning the Collateral and the Related Financing
		Agreements. Each Lender authorizes and
		directs Agent to enter into this Agreement and the other Financing Agreements.
		Each Lender agrees that any action taken by Agent or Required Lenders in
		accordance with the terms of this Agreement or the other Financing Agreements
		and the exercise by Agent or Required Lenders of their respective powers set
		forth therein or herein, together with such other powers that are reasonably
		incidental thereto, shall be binding upon all of the Lenders.
	 

	 
		12.10 Field Audit, Examination Reports and other Information;
		Disclaimer by Lenders. By signing this
		Agreement, each Lender:
	 

	 
		(a) is deemed to have requested that Agent
		furnish such Lender, promptly after it becomes available, a copy of each field
		audit or examination report and report with respect to the Borrowing Base
		prepared or received by Agent (each field audit or examination report and
		report with respect to the Borrowing Base being referred to herein as a
		“Report” and collectively, “Reports”), appraisal and
		financial statements; 
	 

	 
		(b) expressly agrees and acknowledges that
		Agent (i) does not make any representation or warranty as to the accuracy of
		any Report, appraisal or financial statement or (ii) shall not be liable for
		any information contained in any Report, appraisal or financial
		statement;
	 

	 
		(c) expressly agrees and acknowledges that
		the Reports are not comprehensive audits or examinations, that Agent or any
		other party performing any audit or examination will inspect only specific
		information regarding Borrowers and Guarantors and will 
	 

	 
		 
	 

	 
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		rely significantly upon Borrowers’ and
		Guarantors’ books and records, as well as on representations of
		Borrowers’ and Guarantors’ personnel; and
	 

	 
		(d) agrees to keep all Reports confidential
		and strictly for its internal use in accordance with the terms of Section 13.5
		hereof, and not to distribute or use any Report in any other manner.
	 

	 
		12.11 Collateral Matters.
	 

	 
		(a) Agent may, at its option, from time to
		time, at any time on or after an Event of Default and for so long as the same
		is continuing or upon any other failure of a condition precedent to the Loans
		and Letter of Credit Accommodations hereunder, make such disbursements and
		advances (“Special Agent Advances”) which Agent, in its sole
		discretion, (i) deems necessary or desirable either to preserve or protect the
		Collateral or any portion thereof or (ii) to enhance the likelihood or maximize
		the amount of repayment by Borrowers and Guarantors of the Loans and other
		Obligations, provided, that, the aggregate principal amount of the Special
		Agent Advances pursuant to clauses (i) and (ii), plus the then outstanding
		principal amount of the additional Loans and Letter of Credit Accommodations
		which Agent may make or provide as set forth in Section 12.8 hereof, shall not
		exceed the aggregate amount of five (5%) percent of the Maximum Credit and
		shall not cause the total principal amount of Loans and Letters of Credit
		Accommodations to exceed the Maximum Credit or (iii) to pay any other amount
		chargeable to any Borrower or Guarantor pursuant to the terms of this Agreement
		or any of the other Financing Agreements consisting of (A) costs, fees and
		expenses and (B) payments to any issuer of Letter of Credit Accommodations.
		Special Agent Advances shall be repayable on demand and together with all
		interest thereon shall constitute Obligations secured by the Collateral.
		Special Agent Advances shall not constitute Loans but shall otherwise
		constitute Obligations hereunder. Interest on Special Agent Advances shall be
		payable at the Interest Rate then applicable to Prime Rate Loans and shall be
		payable on demand. Without limitation of its obligations pursuant to Section
		6.10, each Lender agrees that it shall make available to Agent, upon
		Agent’s demand, in immediately available funds, the amount equal to such
		Lender’s Pro Rata Share of each such Special Agent Advance. If such funds
		are not made available to Agent by such Lender, such Lender shall be deemed a
		Defaulting Lender and Agent shall be entitled to recover such funds, on demand
		from such Lender together with interest thereon for each day from the date such
		payment was due until the date such amount is paid to Agent at the Federal
		Funds Rate for each day during such period (as published by the Federal Reserve
		Bank of New York or at Agent’s option based on the arithmetic mean
		determined by Agent of the rates for the last transaction in overnight Federal
		funds arranged prior to 9:00 a.m. (New York City time) on that day by each of
		the three leading brokers of Federal funds transactions in New York City
		selected by Agent) and if such amounts are not paid within three (3) days of
		Agent’s demand, at the highest Interest Rate provided for in Section 3.1
		hereof applicable to Prime Rate Loans.
	 

	 
		(b) Lenders hereby irrevocably authorize
		Agent, at its option and in its discretion to release any security interest in,
		mortgage or lien upon, any of the Collateral (i) upon termination of the
		Commitments and payment and satisfaction of all of the Obligations and delivery
		of cash collateral to the extent required under Section 13.1 hereof, or (ii)
		constituting property being sold or disposed of if Administrative Borrower or
		any Borrower or Guarantor certifies to Agent that the sale or disposition is
		made in compliance with Section 9.7 hereof (and 
	 

	 
		 
	 

	 
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		Agent may rely conclusively on any such
		certificate, without further inquiry), or (iii) constituting property in which
		any Borrower or Guarantor did not own an interest at the time the security
		interest, mortgage or lien was granted or at any time thereafter, or (iv)
		having a value in the aggregate in any twelve (12) month period of less than
		$2,000,000, and to the extent Agent may release its security interest in and
		lien upon any such Collateral pursuant to the sale or other disposition
		thereof, such sale or other disposition shall be deemed consented to by
		Lenders, or (v) if required or permitted under the terms of any of the other
		Financing Agreements, including any intercreditor agreement, or (vi) approved,
		authorized or ratified in writing by all of Lenders. Except as provided above,
		Agent will not release any security interest in, mortgage or lien upon, any of
		the Collateral without the prior written authorization of all of Lenders. Upon
		request by Agent at any time, Lenders will promptly confirm in writing
		Agent’s authority to release particular types or items of Collateral
		pursuant to this Section.
	 

	 
		(c) Without any manner limiting Agent’s
		authority to act without any specific or further authorization or consent by
		the Required Lenders, each Lender agrees to confirm in writing, upon request by
		Agent, the authority to release Collateral conferred upon Agent under this
		Section. Agent shall (and is hereby irrevocably authorized by Lenders to)
		execute such documents as may be necessary to evidence the release of the
		security interest, mortgage or liens granted to Agent upon any Collateral to
		the extent set forth above; provided, that, (i) Agent shall not be required to
		execute any such document on terms which, in Agent’s opinion, would expose
		Agent to liability or create any obligations or entail any consequence other
		than the release of such security interest, mortgage or liens without recourse
		or warranty and (ii) such release shall not in any manner discharge, affect or
		impair the Obligations or any security interest, mortgage or lien upon (or
		obligations of any Borrower or Guarantor in respect of) the Collateral retained
		by such Borrower or Guarantor.
	 

	 
		(d) Agent shall have no obligation
		whatsoever to any Lender or any other Person to investigate, confirm or assure
		that the Collateral exists or is owned by any Borrower or Guarantor or is cared
		for, protected or insured or has been encumbered, or that any particular items
		of Collateral meet the eligibility criteria applicable in respect of the Loans
		or Letter of Credit Accommodations hereunder, or whether any particular
		reserves are appropriate, or that the liens and security interests granted to
		Agent pursuant hereto or any of the Financing Agreements or otherwise have been
		properly or sufficiently or lawfully created, perfected, protected or enforced
		or are entitled to any particular priority, or to exercise at all or in any
		particular manner or under any duty of care, disclosure or fidelity, or to
		continue exercising, any of the rights, authorities and powers granted or
		available to Agent in this Agreement or in any of the other Financing
		Agreements, it being understood and agreed that in respect of the Collateral,
		or any act, omission or event related thereto, Agent may act in any manner it
		may deem appropriate, in its discretion, given Agent’s own interest in the
		Collateral as a Lender and that Agent shall have no duty or liability
		whatsoever to any other Lender.
	 

	 
		12.12 Agency for Perfection. Each Lender hereby appoints Agent and each other
		Lender as agent and bailee for the purpose of perfecting the security interests
		in and liens upon the Collateral of Agent in assets which, in accordance with
		Article 9 of the UCC can be perfected only by possession (or where the security
		interest of a secured party with possession has priority over the security
		interest of another secured party) and Agent and each Lender hereby
		acknowledges that it holds possession of any such Collateral for the benefit of
		Agent as 
	 

	 
		 
	 

	 
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		secured party. Should any Lender obtain
		possession of any such Collateral, such Lender shall notify Agent thereof, and,
		promptly upon Agent’s request therefor shall deliver such Collateral to
		Agent or in accordance with Agent’s instructions.
	 

	 
		12.13 Successor Agent.
		Agent may resign as Agent upon thirty (30) days’ notice to Lenders and
		Parent. If Agent resigns under this Agreement, the Required Lenders shall
		appoint from among the Lenders a successor agent for Lenders. If no successor
		agent is appointed prior to the effective date of the resignation of Agent,
		Agent may appoint, after consulting with Lenders and Parent, a successor agent
		from among Lenders. Upon the acceptance by the Lender so selected of its
		appointment as successor agent hereunder, such successor agent shall succeed to
		all of the rights, powers and duties of the retiring Agent and the term
		“Agent” as used herein and in the other Financing Agreements shall
		mean such successor agent and the retiring Agent’s appointment, powers and
		duties as Agent shall be terminated. After any retiring Agent’s
		resignation hereunder as Agent, the provisions of this Section 12 shall inure
		to its benefit as to any actions taken or omitted by it while it was Agent
		under this Agreement. If no successor agent has accepted appointment as Agent
		by the date which is thirty (30) days after the date of a retiring Agent’s
		notice of resignation, the retiring Agent’s resignation shall nonetheless
		thereupon become effective and Lenders shall perform all of the duties of Agent
		hereunder until such time, if any, as the Required Lenders appoint a successor
		agent as provided for above.
	 

	 
		SECTION 13. TERM OF AGREEMENT; MISCELLANEOUS.
	 

	 
		13.1 Term.
	 

	 
		(a) This Agreement and the other Financing
		Agreements shall become effective as of the date set forth on the first page
		hereof and shall continue in full force and effect for a term ending on
		December 31, 2011 (the “Termination Date”). Borrowers may terminate
		this Agreement and the other Financing Agreements at any time upon ten (10)
		days prior written notice to Agent (which notice shall be irrevocable) and
		Agent may, at its option, and shall at the direction of Required Lenders,
		terminate this Agreement at any time on or after an Event of Default. Upon the
		Termination Date or any other effective date of termination of the Financing
		Agreements, Borrowers shall pay to Agent all outstanding and unpaid Obligations
		and shall furnish cash collateral to Agent (or at Agent’s option, a letter
		of credit issued for the account of Borrowers and at Borrowers’ expense,
		in form and substance satisfactory to Agent, by an issuer acceptable to Agent
		and payable to Agent as beneficiary) in such amounts as Agent determines are
		reasonably necessary to secure Agent and Lenders from loss, cost, damage or
		expense, including attorneys’ fees and expenses, in connection with any
		contingent Obligations, including issued and outstanding Letter of Credit
		Accommodations and checks or other payments provisionally credited to the
		Obligations and/or as to which Agent or any Lender has not yet received final
		and indefeasible payment and any continuing obligations of Agent or any Lender
		pursuant to any Deposit Account Control Agreement and for any of the
		Obligations arising under or in connection with any Bank Products in such
		amounts as the Bank Product Provider providing such Bank Products may require
		(unless such Obligations arising under or in connection with any Bank Products
		are paid in full in cash and terminated in a manner satisfactory to such Bank
		Product Provider). The amount of such cash collateral (or letter of credit, as
		Agent may determine) as to any Letter of Credit Accommodations shall be in the
		
	 

	 
		 
	 

	 
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		amount equal to one hundred ten (110%)
		percent of the amount of the Letter of Credit Accommodations plus the amount of
		any fees and expenses payable in connection therewith through the end of the
		latest expiration date of such Letter of Credit Accommodations. Such payments
		in respect of the Obligations and cash collateral shall be remitted by wire
		transfer in Federal funds to the Agent Payment Account or such other bank
		account of Agent, as Agent may, in its discretion, designate in writing to
		Administrative Borrower for such purpose. Interest shall be due until and
		including the next Business Day, if the amounts so paid by Borrowers to the
		Agent Payment Account or other bank account designated by Agent are received in
		such bank account later than 12:00 noon, New York time.
	 

	 
		(b) No termination of this Agreement or the
		other Financing Agreements shall relieve or discharge any Borrower or Guarantor
		of its respective duties, obligations and covenants under this Agreement or the
		other Financing Agreements until all Obligations have been fully and finally
		discharged and paid, and Agent’s continuing security interest in the
		Collateral and the rights and remedies of Agent and Lenders hereunder, under
		the other Financing Agreements and applicable law, shall remain in effect until
		all such Obligations have been fully and finally discharged and paid.
		Accordingly, each Borrower and Guarantor waives any rights it may have under
		the UCC to demand the filing of termination statements with respect to the
		Collateral and Agent shall not be required to send such termination statements
		to Borrowers or Guarantors, or to file them with any filing office, unless and
		until this Agreement shall have been terminated in accordance with its terms
		and all Obligations paid and satisfied in full in immediately available
		funds.
	 

	 
		(c) If for any reason this Agreement is
		terminated prior to the Termination Date, in view of the impracticality and
		extreme difficulty of ascertaining actual damages and by mutual agreement of
		the parties as to a reasonable calculation of Agent’s and each
		Lender’s lost profits as a result thereof, Borrowers agree to pay to Agent
		for itself and the ratable benefit of Lenders, upon the effective date of such
		termination, an early termination fee in the amount equal to
	 

	 
		 
	 

	 
			
				
				  Amount
				

			 	
				
				   
				

			 	
				
				  Period
				

			 
	
				
				  (i) 3% of Maximum Credit
				

			 	
				
				   
				

			 	
				
				  From the date hereof to and
				  including the first anniversary of the date hereof
				

			 
	
				
				  (ii) 11⁄2 % of Maximum
				  Credit
				

			 	
				
				   
				

			 	
				
				  From and after the first anniversary
				  of the date hereof to and including the second anniversary of the date
				  hereof
				

			 
	
				
				  (iii) 1% of Maximum Credit
				

			 	
				
				   
				

			 	
				
				  From and after the second
				  anniversary of the date hereof to but not including the Termination
				  Date.
				

			 

 

	 
		Such early termination fee shall be presumed
		to be the amount of damages sustained by Agent and Lenders as a result of such
		early termination and Borrowers and Guarantors agree that it is reasonable
		under the circumstances currently existing. In addition, Agent and Lenders
		shall be entitled to such early termination fee upon the occurrence of any
		Event of Default described in 
	 

	 
		 
	 

	 
		99
	 

	 
		 
	 

	 
	 

	 

	 
		Sections 10.1(g) and 10.1(h) hereof, even if
		Agent and Lenders do not exercise the right to terminate this Agreement, but
		elect, at their option, to provide financing to any Borrower or permit the use
		of cash collateral under the United States Bankruptcy Code. The early
		termination fee provided for in this Section 13.1 shall be deemed included in
		the Obligations.
	 

	 
		13.2 Interpretative Provisions.
	 

	 
		(a) All terms used herein which are defined
		in Article 1, Article 8 or Article 9 of the UCC shall have the meanings given
		therein unless otherwise defined in this Agreement. 
	 

	 
		(b) All references to the plural herein
		shall also mean the singular and to the singular shall also mean the plural
		unless the context otherwise requires. 
	 

	 
		(c) All references to any Borrower,
		Guarantor, Agent and Lenders pursuant to the definitions set forth in the
		recitals hereto, or to any other person herein, shall include their respective
		successors and assigns. 
	 

	 
		(d) The words “hereof”,
		“herein”, “hereunder”, “this Agreement” and words
		of similar import when used in this Agreement shall refer to this Agreement as
		a whole and not any particular provision of this Agreement and as this
		Agreement now exists or may hereafter be amended, modified, supplemented,
		extended, renewed, restated or replaced. 
	 

	 
		(e) The word “including” when used
		in this Agreement shall mean “including, without limitation” and the
		word “will” when used in this Agreement shall be construed to have
		the same meaning and effect as the word “shall”. 
	 

	 
		(f) An Event of Default shall exist or
		continue or be continuing until such Event of Default is waived in accordance
		with Section 11.3 or is cured in a manner satisfactory to Agent and Required
		Lenders, if such Event of Default is capable of being cured as determined by
		Agent and Required Lenders. 
	 

	 
		(g) All references to the term “good
		faith” used herein when applicable to Agent or any Lender shall mean,
		notwithstanding anything to the contrary contained herein or in the UCC,
		honesty in fact in the conduct or transaction concerned. Borrowers and
		Guarantors shall have the burden of proving any lack of good faith on the part
		of Agent or any Lender alleged by any Borrower or Guarantor at any time.
		
	 

	 
		(h) Any accounting term used in this
		Agreement shall have, unless otherwise specifically provided herein, the
		meaning customarily given in accordance with GAAP, and all financial
		computations hereunder shall be computed unless otherwise specifically provided
		herein, in accordance with GAAP as consistently applied and using the same
		method for inventory valuation as used in the preparation of the financial
		statements of Parent most recently received by Agent prior to the date hereof.
		Notwithstanding anything to the contrary contained in GAAP or any
		interpretations or other pronouncements by the Financial Accounting Standards
		Board or otherwise, the term “unqualified opinion” as used herein to
		refer to opinions or reports provided by accountants shall mean an opinion or
		report that is not only unqualified but also does not include any explanatory
		note or language, including any explanation, supplemental 
	 

	 
		 
	 

	 
		100
	 

	 
		 
	 

	 
	 

	 

	 
		comment or other comment concerning the
		ability of the applicable person to continue as a going concern or
		otherwise.
	 

	 
		(i) 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”.
	 

	 
		(i) Unless otherwise expressly provided
		herein, (i) references herein to any agreement, document or instrument shall be
		deemed to include all subsequent amendments, modifications, supplements,
		extensions, renewals, restatements or replacements with respect thereto, but
		only to the extent the same are not prohibited by the terms hereof or of any
		other Financing Agreement, and (ii) references to any statute or regulation are
		to be construed as including all statutory and regulatory provisions
		consolidating, amending, replacing, recodifying, supplementing or interpreting
		the statute or regulation.
	 

	 
		(j) The captions and headings of this
		Agreement are for convenience of reference only and shall not affect the
		interpretation of this Agreement.
	 

	 
		(i) This Agreement and other Financing
		Agreements may use several different limitations, tests or measurements to
		regulate the same or similar matters. All such limitations, tests and
		measurements are cumulative and shall each be performed in accordance with
		their terms.
	 

	 
		(k) This Agreement and the other Financing
		Agreements are the result of negotiations among and have been reviewed by
		counsel to Agent and the other parties, and are the products of all parties.
		Accordingly, this Agreement and the other Financing Agreements shall not be
		construed against Agent or Lenders merely because of Agent’s or any
		Lender’s involvement in their preparation.
	 

	 
		13.3 Notices. All
		notices, requests and demands hereunder shall be in writing and deemed to have
		been given or made: if delivered in person, immediately upon delivery; if by
		telex, telegram or facsimile transmission, immediately upon sending and upon
		confirmation of receipt; if by nationally recognized overnight courier service
		with instructions to deliver the next Business Day, one (1) Business Day after
		sending; and if by certified mail, return receipt requested, five (5) days
		after mailing. All notices, requests and demands upon the parties are to be
		given to the following addresses (or to such other address as any party may
		designate by notice in accordance with this Section):
	 

	 
		 
	 

	 
			
				
				  If to any Borrower or
				  Guarantor:
				

			 	
				
				   
				

			 	
				
				  Atlantic Express Transportation
				  Corp. 
 7 North Street 

				  Staten Island, New York 10302 

				  Attention: President 

				  Telephone No.: 718-442-7000 

				  Telecopy No.: 718-442-5105
				

			 
	
				
				  with a copy to:
				

			 	
				
				   
				

			 	
				
				  Silverman Sclar Byrne Shin &
				  Byrne P.C. 
 381 Park Avenue South
				  
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		101
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  New York, New York 10016 

				  Attention: John Shin, Esq. 

				  Telephone No.: 212-779-8600 

				  Telecopy No.: 212-779-8858
				

			 
	
				
				  
 If to Agent:
				

			 	
				
				   
				

			 	
				
				  Wachovia Bank, National
				  Association
 1133 Avenue of the
				  Americas
 New York, New York
				  10036
 Attn: Portfolio Manager —
				  Atlantic Express
 Telephone No.:
				  212-840-2000
 Telecopy No.:
				  212-545-4283
				

			 

 

	 
		13.4 Partial Invalidity. If any provision of this Agreement is held to be
		invalid or unenforceable, such invalidity or unenforceability shall not
		invalidate this Agreement as a whole, but this Agreement shall be construed as
		though it did not contain the particular provision held to be invalid or
		unenforceable and the rights and obligations of the parties shall be construed
		and enforced only to such extent as shall be permitted by applicable
		law.
	 

	 
		13.5 Confidentiality.
	 

	 
		(a) Agent and each Lender shall use all
		reasonable efforts to keep confidential, in accordance with its customary
		procedures for handling confidential information and safe and sound lending
		practices, any non-public information supplied to it by any Borrower, Guarantor
		or AETG pursuant to this Agreement which is clearly and conspicuously marked as
		confidential at the time such information is furnished by such Borrower to
		Agent or such Lender, provided, that, nothing contained herein shall limit the
		disclosure of any such information: (i) to the extent required by statute,
		rule, regulation, subpoena or court order, (ii) to bank examiners and other
		regulators in connection with their ordinary course reviews of each
		Lender’s and their Affiliates business, (iii) to bank examiners and other
		regulators, auditors and/or accountants, in connection with any litigation to
		which Agent or such Lender is a party, (iv) to any Lender or Participant (or
		prospective Lender or Participant) or to any Affiliate of any Lender so long as
		such Lender or Participant (or prospective Lender or Participant) or Affiliate
		shall have been instructed to treat such information as confidential in
		accordance with this Section 13.5, or (v) to counsel for Agent or any Lender or
		Participant (or prospective Lender or Participant).
	 

	 
		(b) In the event that Agent or any Lender
		receives a request or demand to disclose any confidential information pursuant
		to any subpoena or court order, Agent or such Lender, as the case may be,
		agrees (i) to the extent permitted by applicable law or if permitted by
		applicable law, to the extent Agent or such Lender determines in good faith
		that it will not create any risk of liability to Agent or such Lender, Agent or
		such Lender will promptly notify Administrative Borrower of such request so
		that Administrative Borrower may seek a protective order or other appropriate
		relief or remedy and (ii) if disclosure of such information is required,
		disclose such information and, subject to reimbursement by Borrowers of
		Agent’s or such Lender’s expenses, cooperate with Administrative
		Borrower in the reasonable efforts to obtain an order or other reliable
		assurance that confidential treatment will be accorded to such portion of the
		disclosed information which Administrative Borrower so designates, to the
		extent 
	 

	 
		 
	 

	 
		102
	 

	 
		 
	 

	 
	 

	 

	 
		permitted by applicable law or if permitted
		by applicable law, to the extent Agent or such Lender determines in good faith
		that it will not create any risk of liability to Agent or such Lender.
	 

	 
		(c) In no event shall this Section 13.5 or
		any other provision of this Agreement, any of the other Financing Agreements or
		applicable law be deemed: (i) to apply to or restrict disclosure of information
		that has been or is made public by any Borrower, Guarantor or any third party
		or otherwise becomes generally available to the public other than as a result
		of a disclosure in violation hereof, (ii) to apply to or restrict disclosure of
		information that was or becomes available to Agent or any Lender (or any
		Affiliate of any Lender) on a non-confidential basis from a person other than a
		Borrower or Guarantor, (iii) to require Agent or any Lender to return any
		materials furnished by a Borrower or Guarantor to Agent or a Lender or prevent
		Agent or a Lender from responding to routine informational requests in
		accordance with the Code of Ethics for the Exchange of Credit Information
		promulgated by The Robert Morris Associates or other applicable industry
		standards relating to the exchange of credit information. The obligations of
		Agent and Lenders under this Section 13.5 shall supersede and replace the
		obligations of Agent and Lenders under any confidentiality letter signed prior
		to the date hereof.
	 

	 
		(d) Notwithstanding anything to the contrary
		set forth herein or in any of the other Financing Agreements or any other
		written or oral understanding or agreement, (i) any obligations of
		confidentiality contained herein, in any of the other Financing Agreements or
		any such other understanding or agreement do not apply and have not applied
		from the commencement of discussions between the parties to the tax treatment
		and tax structure of the transactions contemplated herein (and any related
		transactions or arrangements), and (ii) each party (and each of its employees,
		representatives, or other agents) may disclose to any and all persons the tax
		treatment and tax structuring of the transactions contemplated herein and all
		materials of any kind (including opinions or other tax analyses) that are
		provided to such party relating to such tax treatment and tax structure, all
		within the meaning of Treasury Regulation Section 1.6011-4; provided,
		that, each party recognizes that the privilege that it may,
		in its discretion, maintain with respect to the confidentiality of a
		communication relating to the transactions contemplated herein, including a
		confidential communication with its attorney or a confidential communication
		with a federally authorized tax practitioner under Section 7525 of the Internal
		Revenue Code, is not intended to be affected by the foregoing. Borrowers and
		Guarantors do not intend to treat the Loans and related transactions as being a
		“reportable transaction” (within the meaning of Treasury Regulation
		Section 1.6011-4). In the event Borrowers or Guarantors determine to take any
		action inconsistent with such intention, it will promptly notify Agent thereof.
		Each Borrower and Guarantor acknowledges that one or more of Lenders may treat
		its Loans as part of a transaction that is subject to Treasury Regulation
		Section 1.6011-4 or Section 301.6112-1, and the Agent and such Lender or
		Lenders, as applicable, may file such IRS forms or maintain such lists and
		other records as they may determine is required by such Treasury
		Regulations.
	 

	 
		13.6 Successors. This
		Agreement, the other Financing Agreements and any other document referred to
		herein or therein shall be binding upon and inure to the benefit of and be
		enforceable by Agent, Lenders, Borrowers, Guarantors and their respective
		successors and assigns, except that no Borrower or Guarantor may assign its
		rights under this Agreement, the other Financing Agreements and any other
		document referred to herein or therein without the prior written consent of
		Agent and Lenders. Any such purported assignment without such 
	 

	 
		 
	 

	 
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		express prior written consent shall be void.
		No Lender may assign its rights and obligations under this Agreement without
		the prior written consent of Agent, except as provided in Section 13.7
		hereof. The terms and provisions of this Agreement and the other Financing
		Agreements are for the purpose of defining the relative rights and obligations
		of Borrowers, Guarantors, Agent and Lenders with respect to the transactions
		contemplated hereby and there shall be no third party beneficiaries of any of
		the terms and provisions of this Agreement or any of the other Financing
		Agreements.
	 

	 
		13.7 Assignments; Participations.
	 

	 
		(a) Each Lender may, with the prior written
		consent of Agent (which shall not be unreasonably withheld, provided, that,
		Agent may withhold its consent to any assignment from a Lender to another
		Lender if such Lender’s Commitment as a result of such assignment would
		exceed that of the Commitment of Agent, individually, as a Lender), assign all
		or, if less than all, a portion equal to at least $5,000,000 in the aggregate
		for the assigning Lender, of such rights and obligations under this Agreement
		to one or more Eligible Transferees (but not including for this purpose any
		assignments in the form of a participation), each of which assignees shall
		become a party to this Agreement as a Lender by execution of an Assignment and
		Acceptance; provided, that, (A) such transfer or assignment will not be
		effective until recorded by Agent on the Register, and (B) Agent shall have
		received for its sole account payment of a processing fee from the assigning
		Lender or the assignee in the amount of $5,000. Any Lender may assign its
		rights and delegate its obligations under this Agreement and the other
		Financing Agreements, without the prior written consent of or payment of any
		processing fee to Agent (but in any event with notice to Agent) to any of its
		present and future Subsidiaries or Affiliates.
	 

	 
		(b) Agent shall maintain a register of the
		names and addresses of Lenders, their Commitments and the principal amount of
		their Loans (the “Register”). Agent shall also maintain a copy of
		each Assignment and Acceptance delivered to and accepted by it and shall modify
		the Register to give effect to each Assignment and Acceptance. The entries in
		the Register shall be conclusive and binding for all purposes, absent manifest
		error, and any Borrowers, Obligors, Agent and Lenders may treat each Person
		whose name is recorded in the Register as a Lender hereunder for all purposes
		of this Agreement. The Register shall be available for inspection by
		Administrative Borrower and any Lender at any reasonable time and from time to
		time upon reasonable prior notice.
	 

	 
		(c) Upon such execution, delivery,
		acceptance and recording, from and after the effective date specified in each
		Assignment and Acceptance, the assignee thereunder shall be a party hereto and
		to the other Financing Agreements and, to the extent that rights and
		obligations hereunder have been assigned to it pursuant to such Assignment and
		Acceptance, have the rights and obligations (including, without limitation, the
		obligation to participate in Letter of Credit Accommodations) of a Lender
		hereunder and thereunder and the assigning Lender shall, to the extent that
		rights and obligations hereunder have been assigned by it pursuant to such
		Assignment and Acceptance, relinquish its rights and be released from its
		obligations under this Agreement.
	 

	 
		(d) By execution and delivery of an
		Assignment and Acceptance, the assignor and assignee thereunder confirm to and
		agree with each other and the other parties hereto as
	 

	 
		 
	 

	 
		 
	 

	 
		104
	 

	 
		 
	 

	 
	 

	 

	 
		follows: (i) other than as provided in such Assignment
		and Acceptance, the assigning Lender makes no representation or warranty and
		assumes no responsibility with respect to any statements, warranties or
		representations made in or in connection with this Agreement or any of the
		other Financing Agreements or the execution, legality, enforceability,
		genuineness, sufficiency or value of this Agreement or any of the other
		Financing Agreements furnished pursuant hereto, (ii) the assigning Lender makes
		no representation or warranty and assumes no responsibility with respect to the
		financial condition of any Borrower, Obligor or any of their Subsidiaries or
		the performance or observance by any Borrower or Obligor of any of the
		Obligations; (iii) such assignee confirms that it has received a copy of this
		Agreement and the other Financing Agreements, together with such other
		documents and information it has deemed appropriate to make its own credit
		analysis and decision to enter into such Assignment and Acceptance, (iv) such
		assignee will, independently and without reliance upon the assigning Lender,
		Agent and based on such documents and information as it shall deem appropriate
		at the time, continue to make its own credit decisions in taking or not taking
		action under this Agreement and the other Financing Agreements, (v) such
		assignee appoints and authorizes Agent to take such action as agent on its
		behalf and to exercise such powers under this Agreement and the other Financing
		Agreements as are delegated to Agent by the terms hereof and thereof, together
		with such powers as are reasonably incidental thereto, and (vi) such assignee
		agrees that it will perform in accordance with their terms all of the
		obligations which by the terms of this Agreement and the other Financing
		Agreements are required to be performed by it as a Lender. Agent and Lenders
		may furnish any information concerning any Borrower or Obligor in the
		possession of Agent or any Lender from time to time to assignees and
		Participants.
	 

	 
		(e) Each Lender may sell participations to one or more
		banks or other entities in or to all or a portion of its rights and obligations
		under this Agreement and the other Financing Agreements (including, without
		limitation, all or a portion of its Commitments and the Loans owing to it and
		its participation in the Letter of Credit Accommodations, without the consent
		of Agent or the other Lenders); provided, that, (i) such Lender’s
		obligations under this Agreement (including, without limitation, its Commitment
		hereunder) and the other Financing Agreements shall remain unchanged, (ii) such
		Lender shall remain solely responsible to the other parties hereto for the
		performance of such obligations, and Borrowers, Guarantors, the other Lenders
		and Agent shall continue to deal solely and directly with such Lender in
		connection with such Lender’s rights and obligations under this Agreement
		and the other Financing Agreements, and (iii) the Participant shall not have
		any rights under this Agreement or any of the other Financing Agreements (the
		Participant’s rights against such Lender in respect of such participation
		to be those set forth in the agreement executed by such Lender in favor of the
		Participant relating thereto) and all amounts payable by any Borrower or
		Obligor hereunder shall be determined as if such Lender had not sold such
		participation.
	 

	 
		(f) Nothing in this Agreement shall prevent or prohibit
		any Lender from pledging its Loans hereunder to a Federal Reserve Bank in
		support of borrowings made by such Lenders from such Federal Reserve Bank;
		provided, that, no such pledge shall release such Lender from any of its
		obligations hereunder or substitute any such pledgee for such Lender as a party
		hereto.
	 

	 
		 
	 

	 
		 
	 

	 
		105
	 

	 
		 
	 

	 
	 

	 

	 
		(g) Borrowers and Guarantors shall assist
		Agent or any Lender permitted to sell assignments or participations under this
		Section 13.7 in whatever manner reasonably necessary in order to enable or
		effect any such assignment or participation, including (but not limited to) the
		execution and delivery of any and all agreements, notes and other documents and
		instruments as shall be requested and the delivery of informational materials,
		appraisals or other documents for, and the participation of relevant management
		in meetings and conference calls with, potential Lenders or Participants.
		Borrowers shall certify the correctness, completeness and accuracy, in all
		material respects, of all descriptions of Borrowers and Guarantors and their
		affairs provided, prepared or reviewed by any Borrower or Guarantor that are
		contained in any selling materials and all other information provided by it and
		included in such materials. 
	 

	 
		13.8 Entire Agreement. This Agreement, the other Financing Agreements, any
		supplements hereto or thereto, and any instruments or documents delivered or to
		be delivered in connection herewith or therewith represents the entire
		agreement and understanding concerning the subject matter hereof and thereof
		between the parties hereto, and supersede all other prior agreements,
		understandings, negotiations and discussions, representations, warranties,
		commitments, proposals, offers and contracts concerning the subject matter
		hereof, whether oral or written. In the event of any inconsistency between the
		terms of this Agreement and any schedule or exhibit hereto, the terms of this
		Agreement shall govern.
	 

	 
		13.9 Counterparts, Etc.. This Agreement or any of the other Financing
		Agreements may be executed in any number of counterparts, each of which shall
		be an original, but all of which taken together shall constitute one and the
		same agreement. Delivery of an executed counterpart of this Agreement or any of
		the other Financing Agreements by telefacsimile shall have the same force and
		effect as the delivery of an original executed counterpart of this Agreement or
		any of such other Financing Agreements. Any party delivering an executed
		counterpart of any such agreement by telefacsimile shall also deliver an
		original executed counterpart, but the failure to do so shall not affect the
		validity, enforceability or binding effect of such agreement.
	 

	 
		SECTION 14. ACKNOWLEDGMENT AND
		RESTATEMENT
	 

	 
		14.1 Existing Obligations. Each Borrower and Guarantor hereby acknowledges,
		confirms and agrees that, as of the close of business on May 14, 2007,
		Borrowers are indebted to Agent and Lenders in respect of Revolving Loans under
		the Existing Loan Agreement in the aggregate principal amount of $544,353.75,
		Supplemental Loans under the Existing Loan Agreement in the aggregate principal
		amount of $3,500,000, and Letter of Credit Accommodations under the Existing
		Loan Agreement in the aggregate principal amount of $6,500,000, and LC Advances
		under the Existing Loan Agreement in the aggregate principal amount of
		$3,500,000, in each case together with all interest accrued and accruing
		thereon (to the extent applicable), and all fees, costs, expenses and other
		charges relating thereto, all of which are unconditionally owing by Borrowers
		and Guarantors to Agent and Lenders, without offset, defense or counterclaim of
		any kind, nature or description whatsoever.
	 

	 
		 
	 

	 
		 
	 

	 
		106
	 

	 
		 
	 

	 
	 

	 

	 
		14.2 Acknowledgment of Security Interests.
	 

	 
		(a) Each Borrower and Guarantor hereby acknowledges,
		confirms and agrees that Agent on behalf of Lenders shall continue to have a
		security interest in and lien upon the Collateral heretofore granted to Agent
		and Lenders pursuant to the Existing Financing Agreements to secure the
		Obligations, as well as any Collateral granted under this Agreement or under
		any of the other Financing Agreements or otherwise granted to or held by Agent
		or any Lender.
	 

	 
		(b) The liens and security interests of Agent and
		Lenders in the Collateral shall be deemed to be continuously granted and
		perfected from the earliest date of the granting and perfection of such liens
		and security interests to Agent and Lenders, whether under the Existing
		Financing Agreements, this Agreement or any of the other Financing
		Agreements.
	 

	 
		14.3 Existing Financing
		Agreements. Each Borrower hereby
		acknowledges, confirms and agrees that: (a) the Existing Financing Agreements
		have been duly executed and delivered by Borrowers and Guarantors and are in
		full force and effect as of the date hereof and (b) the agreements and
		obligations of Borrowers and Guarantors contained in the Existing Financing
		Agreements constitute the legal, valid and binding obligations of Borrowers and
		Guarantors enforceable against each of them in accordance with their respective
		terms and Borrowers and Guarantors have no valid defense to the enforcement of
		such obligations and (c) Agent on behalf of Lenders is entitled to all of the
		rights and remedies provided for in favor of Agent and Lenders in the Existing
		Financing Agreements, as amended and restated by this Agreement.
	 

	 
		14.4 Restatement.
	 

	 
		(a) Except as otherwise stated in Section 14.2 hereof
		and this Section 14.4, as of the date hereof, the terms, conditions,
		agreements, covenants, representations and warranties set forth in the Existing
		Financing Agreements are hereby amended and restated in their entirety, and as
		so amended and restated, replaced and superseded, by the terms, conditions,
		agreements, covenants, representations and warranties set forth in this
		Agreement and the other Financing Agreements. The amendment and restatement
		contained herein shall not, in any manner, be construed to constitute payment
		of, or impair, limit, cancel or extinguish, or constitute a novation in respect
		of, the Indebtedness and other obligations and liabilities of Borrowers or
		Guarantors evidenced by or arising under the Existing Financing Agreements, and
		the liens and security interests in the Collateral (as such term is defined
		herein) of Agent and Lenders securing such Indebtedness and other obligations
		and liabilities, which shall not in any manner be impaired, limited,
		terminated, waived or released, but shall continue in full force and effect in
		favor of Agent for the benefit of Lenders.
	 

	 
		(b) The principal amount of the Loans and the amount of
		the Letters of Credit Accommodations outstanding as of the date hereof under
		the Existing Financing Agreements shall be allocated to the Loans and Letter of
		Credit Accommodations hereunder in such manner and in such amounts as Agent
		shall determine.
	 

	 
		 
	 

	 
		 
	 

	 
		107
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		 14.5 Release. Each Borrower and Guarantor for
		itself and its successors and assigns does hereby remise, release, discharge
		and hold Agent and Lenders, their respective officers, directors, agents and
		employees and their respective predecessors, successors and assigns harmless
		from all claims, demands, debts, sums of money, accounts, damages, judgments,
		financial obligations, actions, causes of action, suits at law or in equity, of
		any kind or nature whatsoever, whether or not now existing or known, which any
		Borrower, Guarantor or their respective successors or assigns has had or may
		now or hereafter claim to have against Agent, any Lender or their respective
		officers, directors, agents and employees and their respective predecessors,
		successors and assigns in any way arising from or connected with the Existing
		Financing Agreement or the arrangements set forth therein or transactions
		thereunder up to and including the date hereof, except to the extent
		Administrative Borrower shall notify Agent in writing of any specific
		exceptions to charges for interest, fees, costs and expenses set forth in the
		most recent monthly statement of Borrower’s loan account sent by Agent to
		Administrative Borrower prior to the date hereof pursuant to the Existing
		Financing Agreements within thirty (30) days after the date hereof.

	 

	 
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		BLANK]
	 

	 
		 
	 

	 
		 
	 

	 
		108
	 

	 
		 
	 

	 
	 

	 

	 
		IN WITNESS WHEREOF, Agent, Lenders,
		Borrowers and Guarantors have caused these presents to be duly executed as of
		the day and year first above written.
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  BORROWERS
 

				  ATLANTIC EXPRESS TRANSPORTATION CORP.

				  AMBOY BUS CO., INC. 

				  ATLANTIC ESCORTS INC.

				  ATLANTIC EXPRESS COACHWAYS, INC. 

				  ATLANTIC EXPRESS NEW ENGLAND, INC. 

				  ATLANTIC EXPRESS OF CALIFORNIA, INC. 

				  ATLANTIC EXPRESS OF ILLINOIS, INC. 

				  ATLANTIC EXPRESS OF L.A., INC.

				  ATLANTIC EXPRESS OF MISSOURI INC. 

				  ATLANTIC EXPRESS OF NEW JERSEY, INC. 

				  ATLANTIC EXPRESS OF PENNSYLVANIA, INC. 

				  ATLANTIC EXPRESS OF UPSTATE NEW YORK, INC.
				  
 ATLANTIC TRANSIT CORP. 

				  ATLANTIC-HUDSON, INC. 

				  ATLANTIC PARATRANS, INC. 

				  ATLANTIC PARATRANS OF NYC, INC. 

				  ATLANTIC QUEENS BUS CORP. 

				  BLOCK 7932, INC. 

				  BROOKFIELD TRANSIT INC. 

				  COURTESY BUS CO., INC. 

				  FIORE BUS SERVICE, INC. 

				  GROOM TRANSPORTATION, INC. 

				  G.V.D. LEASING CO., INC. 

				  JAMES MCCARTHY LIMO SERVICE, INC. 

				  JERSEY BUSINESS LAND CO., INC. 

				  K. CORR, INC. 

				  MERIT TRANSPORTATION CORP. 

				  METRO AFFILIATES, INC. 

				  METROPOLITAN ESCORT SERVICE, INC. 

				  MIDWAY LEASING INC. 

				  180 JAMAICA CORP. 

				  R. FIORE BUS SERVICE, INC. 

				  RAYBERN BUS SERVICE, INC. 

				  RAYBERN CAPITAL CORP. 

				  RAYBERN EQUITY CORP. 

				  ROBERT L. MCCARTHY & SON, INC. 

				  STATEN ISLAND BUS, INC. 

				  TEMPORARY TRANSIT SERVICE, INC. 

				  TRANSCOMM, INC. 

				  WINSALE, INC.
				

			 
	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  By:
				

			 	
				
				    /s/ Nathan Schlenker
				

			 
	
				
				   
				

			 	
				
				  
 Title:
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				  AGENT AND LENDERS

				  
 WACHOVIA BANK, NATIONAL ASSOCIATION,
				  
 as Agent and as Lender
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  By:
				

			 	
				
				  /s/ Herbert C. Korn
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				

			 
	
				
				  
 Title:
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT A
	 

	 
		TO
	 

	 
		THIRD AMENDED AND RESTATED LOAN AND SECURITY
		AGREEMENT
	 

	 
		Form of Assignment and Acceptance
		Agreement
	 

	 
		ASSIGNMENT AND ACCEPTANCE AGREEMENT
	 

	 
		This ASSIGNMENT AND ACCEPTANCE AGREEMENT
		(this “Assignment and Acceptance”) dated as of _____________, 200_ is
		made between ________________________ (the “Assignor”) and
		____________________ (the “Assignee”).
	 

	 
		W I T N E S S E T H:
	 

	 
		WHEREAS, Wachovia Bank, National
		Association, in its capacity as agent pursuant to the Loan Agreement (as
		hereinafter defined) acting for and on behalf of the financial institutions
		which are parties thereto as lenders (in such capacity, “Agent”), and
		the financial institutions which are parties to the Loan Agreement as lenders
		(individually, each a “Lender” and collectively, “Lenders”)
		have entered into financing arrangements pursuant to which Agent and Lenders
		may make loans and advances and provide other financial accommodations to
		Atlantic Express Transportation Corp., a New York corporation
		(“Parent”), and certain of its subsidiaries (collectively,
		“Borrowers”) as set forth in the Third Amended and Restated Loan and
		Security Agreement, dated May 15, 2007, by and among Borrowers, certain of
		their affiliates, Agent and Lenders (as the same now exists or may hereafter be
		amended, modified, supplemented, extended, renewed, restated or replaced, the
		“Loan Agreement”), and the other agreements, documents and
		instruments referred to therein or at any time executed and/or delivered in
		connection therewith or related thereto (all of the foregoing, together with
		the Loan Agreement, as the same now exist or may hereafter be amended,
		modified, supplemented, extended, renewed, restated or replaced, being
		collectively referred to herein as the “Financing Agreements”);
		
	 

	 
		WHEREAS, as provided under the Loan
		Agreement, Assignor committed to making Loans (the “Committed Loans”)
		to Borrowers in an aggregate amount not to exceed $___________ (the
		“Commitment”);
	 

	 
		WHEREAS, Assignor wishes to assign to
		Assignee [part of the] [all] rights and obligations of Assignor under the Loan
		Agreement in respect of its Commitment in an amount equal to $______________
		(the “Assigned Commitment Amount”) on the terms and subject to the
		conditions set forth herein and Assignee wishes to accept assignment of such
		rights and to assume such obligations from Assignor on such terms and subject
		to such conditions;
	 

	 
		NOW, THEREFORE, in consideration of the
		foregoing and the mutual agreements contained herein, the parties hereto agree
		as follows:
	 

	 
		1. Assignment and Acceptance.
	 

	 
		(a) Subject to the terms and conditions of
		this Assignment and Acceptance, Assignor hereby sells, transfers and assigns to
		Assignee, and Assignee hereby purchases, assumes and undertakes from Assignor,
		without recourse and without representation or warranty (except as provided in
		this Assignment and Acceptance) an interest in (i) the Commitment and each of
		the Committed Loans of Assignor and (ii) all related rights, benefits,
		obligations, 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		liabilities and indemnities of the Assignor
		under and in connection with the Loan Agreement and the other Financing
		Agreements, so that after giving effect thereto, the Commitment of Assignee
		shall be as set forth below and the Pro Rata Share of Assignee shall be _______
		(__%) percent.
	 

	 
		(b) With effect on and after the Effective
		Date (as defined in Section 5 hereof), Assignee shall be a party to the Loan
		Agreement and succeed to all of the rights and be obligated to perform all of
		the obligations of a Lender under the Loan Agreement, including the
		requirements concerning confidentiality and the payment of indemnification,
		with a Commitment in an amount equal to the Assigned Commitment Amount.
		Assignee agrees that it will perform in accordance with their terms all of the
		obligations which by the terms of the Loan Agreement are required to be
		performed by it as a Lender. It is the intent of the parties hereto that the
		Commitment of Assignor shall, as of the Effective Date, be reduced by an amount
		equal to the Assigned Commitment Amount and Assignor shall relinquish its
		rights and be released from its obligations under the Loan Agreement to the
		extent such obligations have been assumed by Assignee; provided, that, Assignor
		shall not relinquish its rights under Sections 2.1, 6.4, 6.8 and 6.9 of the
		Loan Agreement to the extent such rights relate to the time prior to the
		Effective Date.
	 

	 
		(c) After giving effect to the assignment
		and assumption set forth herein, on the Effective Date Assignee’s
		Commitment will be $_____________.
	 

	 
		(d) After giving effect to the assignment
		and assumption set forth herein, on the Effective Date Assignor’s
		Commitment will be $______________ (as such amount may be further reduced by
		any other assignments by Assignor on or after the date hereof).
	 

	 
		2. Payments.

	 

	 
		(a) As consideration for the sale,
		assignment and transfer contemplated in Section 1 hereof, Assignee shall
		pay to Assignor on the Effective Date in immediately available funds an amount
		equal to $____________, representing Assignee’s Pro Rata Share of the
		principal amount of all Committed Loans.
	 

	 
		(b) Assignee shall pay to Agent the
		processing fee in the amount specified in Section 13.7(a) of the Loan
		Agreement. 
	 

	 
		3. Reallocation of Payments. Any interest, fees and other payments accrued to the
		Effective Date with respect to the Commitment, Committed Loans and outstanding
		Letter of Credit Accommodations shall be for the account of Assignor. Any
		interest, fees and other payments accrued on and after the Effective Date with
		respect to the Assigned Commitment Amount shall be for the account of Assignee.
		Each of Assignor and Assignee agrees that it will hold in trust for the other
		party any interest, fees and other amounts which it may receive to which the
		other party is entitled pursuant to the preceding sentence and pay to the other
		party any such amounts which it may receive promptly upon receipt.
	 

	 
		4. Independent Credit Decision. Assignee acknowledges that it has received a copy of
		the Loan Agreement and the Schedules and Exhibits thereto, together with copies
		of the most recent financial statements of Parent and its Subsidiaries, and
		such other documents and information as it has deemed appropriate to make its
		own credit and legal analysis and decision to enter into this Assignment and
		Acceptance and agrees that it will, independently and without reliance upon
		Assignor, Agent or any Lender and based on such documents and information as it
		
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		shall deem appropriate at the time, continue
		to make its own credit and legal decisions in taking or not taking action under
		the Loan Agreement.
	 

	 
		5. Effective Date; Notices.
	 

	 
		(a) As between Assignor and Assignee, the
		effective date for this Assignment and Acceptance shall be _______________,
		200_ (the “Effective Date”); provided, that, the following conditions
		precedent have been satisfied on or before the Effective Date:
	 

	 
		(i) this Assignment and Acceptance shall be
		executed and delivered by Assignor and Assignee;
	 

	 
		(ii) the consent of Agent as required for an
		effective assignment of the Assigned Commitment Amount by Assignor to Assignee
		shall have been duly obtained and shall be in full force and effect as of the
		Effective Date;
	 

	 
		(iii) written notice of such assignment,
		together with payment instructions, addresses and related information with
		respect to Assignee, shall have been given to Administrative Borrower and
		Agent; 
	 

	 
		(iv) Assignee shall pay to Assignor all
		amounts due to Assignor under this Assignment and Acceptance; and
	 

	 
		(v) the processing fee referred to in
		Section 2(b) hereof shall have been paid to Agent.
	 

	 
		(b) Promptly following the execution of this
		Assignment and Acceptance, Assignor shall deliver to Administrative Borrower
		and Agent for acknowledgment by Agent, a Notice of Assignment in the form
		attached hereto as Schedule 1.
	 

	 
		[6. Agent. [INCLUDE
		ONLY IF ASSIGNOR IS AN AGENT]
	 

	 
		(a) Assignee hereby appoints and authorizes
		Assignor in its capacity as Agent to take such action as agent on its behalf to
		exercise such powers under the Loan Agreement as are delegated to Agent by
		Lenders pursuant to the terms of the Loan Agreement.
	 

	 
		(b) Assignee shall assume no duties or
		obligations held by Assignor in its capacity as Agent under the Loan
		Agreement.]
	 

	 
		7. Withholding Tax.
		Assignee (a) represents and warrants to Assignor, Agent and Borrowers that
		under applicable law and treaties no tax will be required to be withheld by
		Assignee, Agent or Borrowers with respect to any payments to be made to
		Assignee hereunder or under any of the Financing Agreements, (b) agrees to
		furnish (if it is organized under the laws of any jurisdiction other than the
		United States or any State thereof) to Agent and Borrowers prior to the time
		that Agent or Borrowers are required to make any payment of principal, interest
		or fees hereunder, duplicate executed originals of either U.S. Internal Revenue
		Service Form W-8BEN or W-8ECI, as applicable (wherein Assignee claims
		entitlement to the benefits of a tax treaty that provides for a complete
		exemption from U.S. federal income withholding tax on all payments hereunder)
		and agrees to provide new such Forms upon the expiration of any previously
		delivered form or comparable statements in accordance with applicable U.S. law
		and regulations and amendments thereto, duly executed and completed by
		Assignee, and (c)agrees to 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		comply with all applicable U.S. laws and
		regulations with regard to such withholding tax exemption.
	 

	 
		8. Representations and Warranties.
	 

	 
		(a) Assignor represents and warrants that
		(i)it is the legal and beneficial owner of the interest being assigned by it
		hereunder and that such interest is free and clear of any security interest,
		lien, encumbrance or other adverse claim, (ii)it is duly organized and existing
		and it has the full power and authority to take, and has taken, all action
		necessary to execute and deliver this Assignment and Acceptance and any other
		documents required or permitted to be executed or delivered by it in connection
		with this Assignment and Acceptance and to fulfill its obligations hereunder,
		(iii)no notices to, or consents, authorizations or approvals of, any Person are
		required (other than any already given or obtained) for its due execution,
		delivery and performance of this Assignment and Acceptance, and apart from any
		agreements or undertakings or filings required by the Loan Agreement, no
		further action by, or notice to, or filing with, any Person is required of it
		for such execution, delivery or performance, and (iv)this Assignment and
		Acceptance has been duly executed and delivered by it and constitutes the
		legal, valid and binding obligation of Assignor, enforceable against Assignor
		in accordance with the terms hereof, subject, as to enforcement, to bankruptcy,
		insolvency, moratorium, reorganization and other laws of general application
		relating to or affecting creditors’ rights and to general equitable
		principles.
	 

	 
		(b) Assignor makes no representation or
		warranty and assumes no responsibility with respect to any statements,
		warranties or representations made in or in connection with the Loan Agreement
		or any of the other Financing Agreements or the execution, legality, validity,
		enforceability, genuineness, sufficiency or value of the Loan Agreement or any
		other instrument or document furnished pursuant thereto. Assignor makes no
		representation or warranty in connection with, and assumes no responsibility
		with respect to, the solvency, financial condition or statements of Borrowers,
		Guarantors or any of their respective Affiliates, or the performance or
		observance by Borrowers, Guarantors or any other Person, of any of its
		respective obligations under the Loan Agreement or any other instrument or
		document furnished in connection therewith.
	 

	 
		(c) Assignee represents and warrants that
		(i)it is duly organized and existing and it has full power and authority to
		take, and has taken, all action necessary to execute and deliver this
		Assignment and Acceptance and any other documents required or permitted to be
		executed or delivered by it in connection with this Assignment and Acceptance,
		and to fulfill its obligations hereunder, (ii) no notices to, or consents,
		authorizations or approvals of, any Person are required (other than any already
		given or obtained) for its due execution, delivery and performance of this
		Assignment and Acceptance, and apart from any agreements or undertakings or
		filings required by the Loan Agreement, no further action by, or notice to, or
		filing with, any Person is required of it for such execution, delivery or
		performance; and (iii) this Assignment and Acceptance has been duly executed
		and delivered by it and constitutes the legal, valid and binding obligation of
		Assignee, enforceable against Assignee in accordance with the terms hereof,
		subject, as to enforcement, to bankruptcy, insolvency, moratorium,
		reorganization and other laws of general application relating to or affecting
		creditors’ rights to general equitable principles.
	 

	 
		9. Further Assurances. Assignor and Assignee each hereby agree to execute and
		deliver such other instruments, and take such other action, as either party may
		reasonably request in connection with the transactions contemplated by this
		Assignment and Acceptance, including 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		the delivery of any notices or other
		documents or instruments to Borrowers or Agent, which may be required in
		connection with the assignment and assumption contemplated hereby.
	 

	 
		10. Miscellaneous
	 

	 
		(a) Any amendment or waiver of any provision
		of this Assignment and Acceptance shall be in writing and signed by the parties
		hereto. No failure or delay by either party hereto in exercising any right,
		power or privilege hereunder shall operate as a waiver thereof and any waiver
		of any breach of the provisions of this Assignment and Acceptance shall be
		without prejudice to any rights with respect to any other for further breach
		thereof.
	 

	 
		(b) All payments made hereunder shall be
		made without any set-off or counterclaim.
	 

	 
		(c) Assignor and Assignee shall each pay its
		own costs and expenses incurred in connection with the negotiation,
		preparation, execution and performance of this Assignment and
		Acceptance.
	 

	 
		(d) This Assignment and Acceptance may be
		executed in any number of counterparts and all of such counterparts taken
		together shall be deemed to constitute one and the same instrument.
	 

	 
		(e) THIS ASSIGNMENT AND ACCEPTANCE SHALL BE
		GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.
		Assignor and Assignee each irrevocably submits to the non-exclusive
		jurisdiction of any State or Federal court sitting in New York County, New York
		over any suit, action or proceeding arising out of or relating to this
		Assignment and Acceptance and irrevocably agrees that all claims in respect of
		such action or proceeding may be heard and determined in such New York State or
		Federal court. Each party to this Assignment and Acceptance hereby irrevocably
		waives, to the fullest extent it may effectively do so, the defense of an
		inconvenient forum to the maintenance of such action or proceeding.
	 

	 
		(f) ASSIGNOR AND ASSIGNEE EACH HEREBY
		KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A
		TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF,
		UNDER, OR IN CONNECTION WITH THIS ASSIGNMENT AND ACCEPTANCE, THE LOAN
		AGREEMENT, ANY OF THE OTHER FINANCING AGREEMENTS OR ANY RELATED DOCUMENTS AND
		AGREEMENTS OR ANY COURSE OF CONDUCT, COURSE OF DEALING, OR STATEMENTS (WHETHER
		ORAL OR WRITTEN).
	 

	 
		IN WITNESS WHEREOF, Assignor and Assignee
		have caused this Assignment and Acceptance to be executed and delivered by
		their duly authorized officers as of the date first above written.
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  [ASSIGNOR]
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By:
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  
 Title:
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  [ASSIGNEE]
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By:
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  
 Title:
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 
 

	 
		SCHEDULE 1
	 

	 
		NOTICE OF ASSIGNMENT AND ACCEPTANCE
	 

	 
		___, 20__
	 

	 
			
				
				  To: 
				

			 	
				
				  Wachovia Bank, National Association,
				  as Agent
				

			 

 

	 
		1133 Avenue of the Americas
	 

	 
		New York, New York 10036
	 

	 
		Re: Atlantic Express Transportation
		Corp.
	 

	 
		Ladies and Gentlemen:
	 

	 
		Wachovia Bank, National Association, in its
		capacity as agent pursuant to the Loan Agreement (as hereinafter defined)
		acting for and on behalf of the financial institutions which are parties
		thereto as lenders (in such capacity, “Agent”), and the financial
		institutions which are parties to the Loan Agreement as lenders (individually,
		each a “Lender” and collectively, “Lenders”) have entered
		into financing arrangements pursuant to which Agent and Lenders may make loans
		and advances and provide other financial accommodations to Atlantic Express
		Transportation Corp., a New York corporation, and certain of its subsidiaries
		(collectively, “Borrowers”) as set forth in the Third Amended and
		Restated Loan and Security Agreement, dated May 15, 2007, by and among
		Borrowers, certain of their affiliates, Agent and Lenders (as the same now
		exists or may hereafter be amended, modified, supplemented, extended, renewed,
		restated or replaced, the “Loan Agreement”), and the other
		agreements, documents and instruments referred to therein or at any time
		executed and/or delivered in connection therewith or related thereto (all of
		the foregoing, together with the Loan Agreement, as the same now exist or may
		hereafter be amended, modified, supplemented, extended, renewed, restated or
		replaced, being collectively referred to herein as the “Financing
		Agreements”). Capitalized terms not otherwise defined herein shall have
		the respective meanings ascribed thereto in the Loan Agreement.
	 

	 
		1. We hereby give you notice of, and request
		your consent to, the assignment by __________________________ (the
		“Assignor”) to ___________________________ (the “Assignee”)
		such that after giving effect to the assignment Assignee shall have an interest
		equal to ________ (__%) percent of the total Commitments pursuant to the
		Assignment and Acceptance Agreement attached hereto (the “Assignment and
		Acceptance”). We understand that the Assignor’s Commitment shall be
		reduced by $_____________, as the same may be further reduced by other
		assignments on or after the date hereof.
	 

	 
		2. Assignee agrees that, upon receiving the
		consent of Agent to such assignment, Assignee will be bound by the terms of the
		Loan Agreement as fully and to the same extent as if the Assignee were the
		Lender originally holding such interest under the Loan Agreement.
	 

	 
		3. The following administrative details
		apply to Assignee:
	 

	 
			
				
				   
				

			 	
				
				  (A)
				

			 	
				
				  Notice address:
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Assignee name: 
	 

	 
		Address: 
	 

	 
		Attention: 
	 

	 
		Telephone: 
	 

	 
		Telecopier: 
	 

	 
			
				
				   
				

			 	
				
				  (B)
				

			 	
				
				  Payment instructions:
				

			 

 

	 
		Account No.: 
	 

	 
		At: 
	 

	 
		Reference:
	 

	 
		Attention:
	 

	 
		4. You are entitled to rely upon the
		representations, warranties and covenants of each of Assignor and Assignee
		contained in the Assignment and Acceptance.
	 

	 
		IN WITNESS WHEREOF, Assignor and Assignee
		have caused this Notice of Assignment and Acceptance to be executed by their
		respective duly authorized officials, officers or agents as of the date first
		above mentioned.
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  Very truly yours,
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  [NAME OF ASSIGNOR]
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  [NAME OF ASSIGNEE]
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 	
				
				   
				

			 

 

	 
		ACKNOWLEDGED AND ASSIGNMENT
	 

	 
		CONSENTED TO:
	 

	 
		 
	 

	 
			
				
				  WACHOVIA BANK, NATIONAL ASSOCIATION,
				  as Agent
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  
 By: 
				

			 	
				
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Title:
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT B
	 

	 
		TO
	 

	 
		THIRD AMENDED AND RESTATED LOAN AND SECURITY
		AGREEMENT
	 

	 
		Information Certificate
	 

	 
		See attached
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT C
	 

	 
		TO
	 

	 
		THIRD AMENDED AND RESTATED LOAN AND SECURITY
		AGREEMENT
	 

	 
		Form of Compliance Certificate

	 

	 
			
				
				  To:
				

			 	
				
				  Wachovia Bank, National Association,
				  as Agent
				

			 

 

	 
		1133 Avenue of the Americas
	 

	 
		New York, New York 10036
	 

	 
		Ladies and Gentlemen:
	 

	 
		I hereby certify to you pursuant to Section
		9.6 of the Loan Agreement (as defined below) as follows:
	 

	 
		1. I am the duly elected Chief Financial
		Officer of Atlantic Express Transportation Corp., a New York corporation
		(“Administrative Borrower”). Capitalized terms used herein without
		definition shall have the meanings given to such terms in the Third Amended and
		Restated Loan and Security Agreement, dated May 15, 2007, by and among Wachovia
		Bank, National Association, as agent for the financial institutions party
		thereto as lenders (in such capacity, “Agent”), and the financial
		institutions party thereto as lenders (collectively, “Lenders”),
		Administrative Borrower, and certain of its affiliates and subsidiaries (as
		amended, modified or supplemented, from time to time, the “Loan
		Agreement”).
	 

	 
		2. I have reviewed the terms of the Loan
		Agreement, and have made, or have caused to be made under my supervision, a
		review in reasonable detail of the transactions and the financial condition of
		Borrowers and Guarantors, during the immediately preceding fiscal month.

	 

	 
		3. The review described in Section 2 above
		did not disclose the existence during or at the end of such fiscal month, and I
		have no knowledge of the existence and continuance on the date hereof, of any
		condition or event which constitutes a Default or an Event of Default, except
		as set forth on Schedule I attached hereto. Described on Schedule I attached
		hereto are the exceptions, if any, to this Section 3 listing, in detail, the
		nature of the condition or event, the period during which it has existed and
		the action which any Borrower or Guarantor has taken, is taking, or proposes to
		take with respect to such condition or event.
	 

	 
		4. I further certify that, based on the
		review described in Section 2 above, no Borrower or Guarantor has not at any
		time during or at the end of such fiscal month, except as specifically
		described on Schedule II attached hereto or as permitted by the Loan Agreement,
		done any of the following:
	 

	 
		(a) Changed its respective corporate name,
		or transacted business under any trade name, style, or fictitious name, other
		than those previously described to you and set forth in the Financing
		Agreements.
	 

	 
		(b) Changed the location of its chief
		executive office, changed its jurisdiction of incorporation, changed its type
		of organization or changed the location of or disposed of any of its properties
		or assets (other than pursuant to the sale of Inventory in the ordinary course
		of its business or as otherwise permitted by Section 9.7 of the Loan
		Agreement), or established any new asset locations.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		(c) Materially changed the terms upon which
		it sells goods (including sales on consignment) or provides services, nor has
		any vendor or trade supplier to any Borrower or Guarantor during or at the end
		of such period materially adversely changed the terms upon which it supplies
		goods to any Borrower or Guarantor.
	 

	 
		(d) Permitted or suffered to exist any
		security interest in or liens on any of its properties, whether real or
		personal, other than as specifically permitted in the Financing
		Agreements.
	 

	 
		(e) Received any notice of, or obtained
		knowledge of any of the following not previously disclosed to Agent: (i) the
		occurrence of any event involving the release, spill or discharge of any
		Hazardous Material in violation of applicable Environmental Law in a material
		respect or (ii) any investigation, proceeding, complaint, order, directive,
		claims, citation or notice with respect to: (A) any non-compliance with or
		violation of any applicable Environmental Law by any Borrower or Guarantor in
		any material respect or (B) the release, spill or discharge of any Hazardous
		Material in violation of applicable Environmental Law in a material respect or
		(C) the generation, use, storage, treatment, transportation, manufacture,
		handling, production or disposal of any Hazardous Materials in violation of
		applicable Environmental Laws in a material respect or (D) any other
		environmental, health or safety matter, which has a material adverse effect on
		any Borrower or Guarantor or its business, operations or assets or any
		properties at which such Borrower or Guarantor transported, stored or disposed
		of any Hazardous Materials.
	 

	 
		(f) Become aware of, obtained knowledge of,
		or received notification of, any breach or violation of any material covenant
		contained in any instrument or agreement in respect of Indebtedness for money
		borrowed by any Borrower or Guarantor.
	 

	 
		5. Attached hereto as Schedule III are the
		calculations used in determining, as of the end of such fiscal month whether
		Borrowers and Guarantors are in compliance with the covenants set forth in
		Sections 9.17 of the Loan Agreement for such fiscal month.
	 

	 
		The foregoing certifications are made and
		delivered this day of ___________, 20__.
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Very truly yours,
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   ATLANTIC EXPRESS TRANSPORTATION
				  CORP., on behalf of each of the Borrowers
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 1.43
	 

	 
		TO
	 

	 
		THIRD AMENDED AND RESTATED LOAN AND SECURITY
		AGREEMENT
	 

	 
		Existing Letters of Credit
	 

	 
		 
	 

	 
			
				
				  Issuing 

				  Bank
				

			 	
				
				   
				

			 	
				
				  Letter of Credit No.
				

			 	
				
				   
				

			 	
				
				  Beneficiary
				

			 	
				
				   
				

			 	
				
				  Face Amount
				

			 	
				
				   
				

			 	
				
				  Expiration Date
				

			 	
				
				   
				

			 
	
				
				  Wachovia Bank, National
				  Association
				

			 	
				
				   
				

			 	
				
				  SM208167W
				

			 	
				
				   
				

			 	
				
				  Liberty Mutual Insurance
				  Company
				

			 	
				
				   
				

			 	
				
				  $6,500,000
				

			 	
				
				   
				

			 	
				
				  5/10/08
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Total
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  $6,500,000
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 8.9
	 

	 
		TO
	 

	 
		THIRD AMENDED AND RESTATED LOAN AND SECURITY
		AGREEMENT
	 

	 
		Multiemployer Plans
	 

	 
		 
	 

	 
			
				
				  Company
				

			 	
				
				   
				

			 	
				
				  Plan Description
				

			 
	
				
				  Amboy Bus Co., Inc.

				  Atlantic Queens Bus Corp.

				  Metropolitan Escort Service, Inc.
				

			 	
				
				   
				

			 	
				
				  Local 1181-1061
				

			 
	
				
				  Atlantic Express of L.A.
				  Inc.
 Atlantic Express of California,
				  Inc.
				

			 	
				
				   
				

			 	
				
				  Local 571 Retirement Trust
				  Fund
 Western Alliance Trust Fund
				  (mechanics)
				

			 
	
				
				  Atlantic Express of Missouri
				  Inc
				

			 	
				
				   
				

			 	
				
				  LIUNA National Industry Pension
				  Fund

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