Document:

Exhibit 10.2

    

    Exhibit
      10.2

    

    Execution
      Version

    
      

      

    

     

    The
      Hain
      Celestial Group, Inc.

     

    

    

    $150,000,000
      Senior Notes

    due
      May 2, 2016

    

     

    ________________

     

    Note
      Purchase Agreement

     

    ________________

     

    Dated
      as
      of May 2, 2006

     

     

    
      

      

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Table
      of Contents

     

    
      
         

        
          	
                  SECTION

                	
                  HEADING

                	
                  PAGE

                
	 	 	 
	
                  SECTION 1.

                	
                  AUTHORIZATION
                    OF NOTES

                	
                  1

                
	
                  Section 1.1.

                	
                  Description
                    of Notes

                	
                  1

                
	
                  Section 1.2.

                	
                  Interest
                    Rate

                	
                  1

                
	
                  SECTION 2.

                	
                  SALE
                    AND PURCHASE OF NOTES

                	
                  2

                
	
                  Section 2.1.

                	
                  Notes

                	
                  2

                
	
                  Section
                    2.2.

                	
                  Subsidiary
                    Guaranty

                	
                  2

                
	
                  SECTION 3.

                	
                  CLOSING

                	
                  3

                
	
                  SECTION 4.

                	
                  CONDITIONS
                    TO CLOSING

                	
                  3

                
	
                  Section
                    4.1.

                	
                  Representations
                    and Warranties

                	
                  3

                
	
                  Section 4.2.

                	
                  Performance;
                    No Default

                	
                  3

                
	
                  Section 4.3.

                	
                  Compliance
                    Certificates

                	
                  4

                
	
                  Section 4.4.

                	
                  Opinions
                    of Counsel

                	
                  4

                
	
                  Section 4.5.

                	
                  Purchase
                    Permitted by Applicable Law, Etc

                	
                  4

                
	
                  Section 4.6.

                	
                  Sale
                    of Other Notes

                	
                  5

                
	
                  Section 4.7.

                	
                  Payment
                    of Special Counsel Fees

                	
                  5

                
	
                  Section 4.8.

                	
                  Private
                    Placement Number

                	
                  5

                
	
                  Section 4.9.

                	
                  Changes
                    in Corporate Structure

                	
                  5

                
	
                  Section
                    4.10.

                	
                  Subsidiary
                    Guaranty

                	
                  5

                
	
                  Section 4.11.

                	
                  Funding
                    Instructions

                	
                  5

                
	
                  Section 4.12.

                	
                  Proceedings
                    and Documents

                	
                  5

                
	
                  SECTION 5.

                	
                  REPRESENTATIONS
                    AND WARRANTIES OF THE COMPANY

                	
                  5

                
	
                  Section 5.1.

                	
                  Organization;
                    Power and Authority

                	
                  5

                
	
                  Section 5.2.

                	
                  Authorization,
                    Etc

                	
                  6

                
	
                  Section 5.3.

                	
                  Disclosure

                	
                  6

                
	
                  Section 5.4.

                	
                  Organization
                    and Ownership of Shares of Subsidiaries; Affiliates

                	
                  6

                
	
                  Section 5.5.

                	
                  Financial
                    Statements; Material Liabilities

                	
                  7

                
	
                  Section 5.6.

                	
                  Compliance
                    with Laws, Other Instruments, Etc

                	
                  7

                
	
                  Section 5.7.

                	
                  Governmental
                    Authorizations, Etc

                	
                  7

                
	
                  Section 5.8.

                	
                  Litigation;
                    Observance of Agreements, Statutes and Orders

                	
                  8

                
	
                  Section 5.9.

                	
                  Taxes

                	
                  8

                
	
                  Section 5.10.

                	
                  Title
                    to Property; Leases

                	
                  8

                
	
                  Section 5.11.

                	
                  Licenses,
                    Permits, Etc

                	
                  9

                
	
                  Section 5.12.

                	
                  Compliance
                    with ERISA

                	
                  9

                
	
                  Section 5.13.

                	
                  Private
                    Offering by the Company

                	
                  10

                

        

        
          
            
            

          

          
            -i-

            
              

            

          

          
            
            

          

        

        

        
          	
                  Section 5.14.

                	
                  Use
                    of Proceeds; Margin Regulations

                	
                  10

                
	
                  Section 5.15.

                	
                  Existing
                    Debt; Future Liens

                	
                  10

                
	
                  Section 5.16.

                	
                  Foreign
                    Assets Control Regulations, Etc

                	
                  11

                
	
                  Section 5.17.

                	
                  Status
                    under Certain Statutes

                	
                  11

                
	
                  Section 5.18.

                	
                  Environmental
                    Matters

                	
                  11

                
	
                  Section 5.19.

                	
                  Notes
                    Rank Pari Passu

                	
                  12

                
	
                  SECTION 6.

                	
                  REPRESENTATIONS
                    OF THE PURCHASER

                	
                  12

                
	
                  Section 6.1.

                	
                  Purchase
                    for Investment

                	
                  12

                
	
                  Section 6.2.

                	
                  Accredited
                    Investor

                	
                  12

                
	
                  Section 6.3.

                	
                  Source
                    of Funds

                	
                  12

                
	
                  SECTION 7.

                	
                  INFORMATION
                    AS TO COMPANY

                	
                  14

                
	
                  Section 7.1.

                	
                  Financial
                    and Business Information

                	
                  14

                
	
                  Section 7.2.

                	
                  Officer’s
                    Certificate

                	
                  17

                
	
                  Section 7.3.

                	
                  Visitation

                	
                  17

                
	
                  SECTION 8.

                	
                  PAYMENT
                    OF THE NOTES

                	
                  18

                
	
                  Section 8.1.

                	
                  Required
                    Prepayments

                	
                  18

                
	
                  Section 8.2.

                	
                  Optional
                    Prepayments with Make-Whole Amount

                	
                  18

                
	
                  Section 8.3.

                	
                  Allocation
                    of Partial Prepayments

                	
                  18

                
	
                  Section 8.4.

                	
                  Rejectable
                    Offer of Prepayment Following Certain Asset Sales

                	
                  18

                
	
                  Section 8.5.

                	
                  Maturity;
                    Surrender, Etc.

                	
                  19

                
	
                  Section 8.6.

                	
                  Purchase
                    of Notes

                	
                  19

                
	
                  Section 8.7.

                	
                  Make-Whole
                    Amount for the Notes

                	
                  19

                
	
                  SECTION 9.

                	
                  AFFIRMATIVE
                    COVENANTS

                	
                  20

                
	
                  Section 9.1.

                	
                  Compliance
                    with Law

                	
                  20

                
	
                  Section 9.2.

                	
                  Insurance

                	
                  21

                
	
                  Section 9.3.

                	
                  Maintenance
                    of Properties

                	
                  21

                
	
                  Section 9.4.

                	
                  Payment
                    of Taxes and Claims

                	
                  21

                
	
                  Section 9.5.

                	
                  Corporate
                    Existence, Etc

                	
                  21

                
	
                  Section
                    9.6.

                	
                  Designation
                    of Subsidiaries

                	
                  21

                
	
                  Section 9.7.

                	
                  Notes
                    to Rank Pari Passu

                	
                  22

                
	
                  Section 9.8.

                	
                  Additional
                    Subsidiary Guarantors

                	
                  22

                
	
                  Section 9.9.

                	
                  Books
                    and Records

                	
                  23

                
	
                  SECTION 10.

                	
                  NEGATIVE
                    COVENANTS

                	
                  23

                
	
                  Section 10.1.

                	
                  Consolidated
                    Debt to Consolidated EBITDA

                	
                  23

                
	
                  Section
                    10.2.

                	
                  Priority
                    Debt

                	
                  23

                
	
                  Section 10.3.

                	
                  Limitation
                    on Liens

                	
                  23

                
	
                  Section 10.4.

                	
                  Sales
                    of Asset

                	
                  25

                
	
                  Section 10.5.

                	
                  Merger
                    and Consolidation

                	
                  26

                

        

        
          
            
            

          

          
            -ii-

            
              

            

          

          
            
            

          

        

        

        
          	
                  Section 10.6.

                	
                  Transactions
                    with Affiliates

                	
                  27

                
	
                  Section 10.7.

                	
                  Terrorism
                    Sanctions Regulations

                	
                  27

                
	
                  Section 10.8.

                	
                  Line
                    of Business

                	
                  27

                
	
                  SECTION 11.

                	
                  EVENTS
                    OF DEFAULT

                	
                  30

                
	
                  SECTION 12.

                	
                  REMEDIES
                    ON DEFAULT, ETC

                	
                  30

                
	
                  Section 12.1.

                	
                  Acceleration

                	
                  30

                
	
                  Section 12.2.

                	
                  Other
                    Remedies

                	
                  30

                
	
                  Section 12.3.

                	
                  Rescission

                	
                  31

                
	
                  Section 12.4.

                	
                  No
                    Waivers or Election of Remedies, Expenses, Etc

                	
                  31

                
	
                  SECTION 13.

                	
                  REGISTRATION;
                    EXCHANGE; SUBSTITUTION OF NOTES

                	
                  31

                
	
                  Section 13.1.

                	
                  Registration
                    of Notes

                	
                  31

                
	
                  Section 13.2.

                	
                  Transfer
                    and Exchange of Notes

                	
                  32

                
	
                  Section
                    13.3.

                	
                  Transfer
                    Restrictions

                	
                  32

                
	
                  Section 13.4.

                	
                  Replacement
                    of Notes

                	
                  32

                
	
                  SECTION 14.

                	
                  PAYMENTS
                    ON NOTES

                	
                  33

                
	
                  Section 14.1.

                	
                  Place
                    of Payment

                	
                  33

                
	
                  Section 14.2.

                	
                  Home
                    Office Payment

                	
                  33

                
	
                  SECTION 15.

                	
                  EXPENSES,
                    ETC

                	
                  33

                
	
                  Section 15.1.

                	
                  Transaction
                    Expenses

                	
                  33

                
	
                  Section 15.2.

                	
                  Survival

                	
                  34

                
	
                  SECTION 16.

                	
                  SURVIVAL
                    OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT

                	
                  34

                
	
                  SECTION 17.

                	
                  AMENDMENT
                    AND WAIVER

                	
                  34

                
	
                  Section 17.1.

                	
                  Requirements

                	
                  34

                
	
                  Section 17.2.

                	
                  Solicitation
                    of Holders of Notes

                	
                  34

                
	
                  Section 17.3.

                	
                  Binding
                    Effect, Etc

                	
                  35

                
	
                  Section 17.4.

                	
                  Notes
                    Held by Company, Etc

                	
                  35

                
	
                  SECTION 18.

                	
                  NOTICES

                	
                  35

                
	
                  SECTION 19.

                	
                  REPRODUCTION
                    OF DOCUMENTS

                	
                  36

                
	
                  SECTION 20.

                	
                  CONFIDENTIAL
                    INFORMATION

                	
                  37

                
	
                  SECTION 21.

                	
                  SUBSTITUTION
                    OF PURCHASER

                	
                  37

                

        

        
          
            
            

          

          
            -iii-

            
              

            

          

          
            
            

          

        

        

        
          	
                  SECTION 22.

                	
                  MISCELLANEOUS

                	
                  37

                
	
                  Section 22.1.

                	
                  Successors
                    and Assigns

                	
                  37

                
	
                  Section 22.2.

                	
                  Payments
                    Due on Non-Business Days

                	
                  38

                
	
                  Section 22.3.

                	
                  Accounting
                    Terms

                	
                  38

                
	
                  Section 22.4.

                	
                  Severability

                	
                  38

                
	
                  Section 22.5.

                	
                  Construction

                	
                  38

                
	
                  Section 22.6.

                	
                  Counterparts

                	
                  38

                
	
                  Section 22.7.

                	
                  Governing
                    Law

                	
                  38

                
	
                  Section 22.8.

                	
                  Jurisdiction
                    and Process; Waiver of Jury Trial

                	
                  39

                

        

        

        

      

    

     

    

    
      
        
        

      

      
        -iv-

        
          

        

      

      
        
        

      

    

     

     

    
      
         

        
          	
                  Schedule A

                	
                  —

                	
                  Information
                    Relating to Purchasers

                
	 	 	 
	
                  Schedule B

                	
                  —

                	
                  Defined
                    Terms

                
	 	 	 
	
                  Schedule 4.9

                	
                  —

                	
                  Changes
                    in Corporate Structure

                
	 	 	 
	
                  Schedule 5.4

                	
                  —

                	
                  Subsidiaries
                    of the Company, Ownership of Subsidiary Stock,
                    Affiliates

                
	 	 	 
	
                  Schedule 5.5

                	
                  —

                	
                  Financial
                    Statements

                
	 	 	 
	
                  Schedule 5.11

                	
                  —

                	
                  Licenses,
                    Permits, Etc.

                
	 	 	 
	
                  Schedule 5.15

                	
                  —

                	
                  Existing
                    Debt

                
	 	 	 
	
                  Schedule 10.3

                	
                  —

                	
                  Existing
                    Liens

                
	 	 	 
	
                  Exhibit 1

                	
                  —

                	
                  Form
                    of Senior Notes, due May 2, 2016

                
	 	 	 
	
                  Exhibit 2.2

                	
                  —

                	
                  Form
                    of Subsidiary Guaranty

                
	 	 	 
	
                  Exhibit 4.4(a)

                	
                  —

                	
                  Form
                    of Opinion of Associate General Counsel to the Company

                
	 	 	 
	
                  Exhibit 4.4(b)

                	
                  —

                	
                  Form
                    of Opinion of Special Counsel to the Company

                
	 	 	 
	
                  Exhibit 4.4(c)

                	
                  —

                	
                  Form
                    of Opinion of Special Counsel to the Purchasers

                
	 	 	 
	
                  Exhibit 10.5

                	
                  —

                	
                  Form
                    of Assumption Agreement

                
	 	 	 

        

        

      

    

     

    
      
        
        

      

      
        -v-

        
          

        

      

      
        
        

      

    

    The
      Hain Celestial Group, Inc.

    58
      South Service Road

    Melville,
      NY 11747

     

    $150,000,000
      Senior Notes

     

    due
      May 2, 2016

     

    Dated
      as
      of

     

    May 2,
      2006

     

    To
      the
      Purchasers listed in

    the
      attached Schedule A:

     

    Ladies
      and Gentlemen:

     

    The
      Hain
      Celestial Group, Inc.,
      a
      Delaware corporation (the “Company”),
      agrees
      with the Purchasers listed in the attached Schedule A (the “Purchasers”)
      to this
      Note Purchase Agreement (this “Agreement”)
      as
      follows:

     

    
      	
              Section 1.

            	
              Authorization
                of Notes.

            

    

     

    Section 1.1. 
      Description
      of Notes.
      The
      Company will authorize the issue and sale of the following Senior Notes:

     

    

    
      	
               

              Issue

               

            	
               

              Aggregate
                Principal Amount

               

            	
               

              Interest
                Rate

               

            	
               

              Maturity
                Date

               

            
	
               

              Senior
                Notes

               

            	
               

              $150,000,000

               

            	
               

              5.98%
                (6.23% in accordance with
Section 1.2(b))

               

            	
               

              May 2,
                2016

               

            

    

     

    The
      Senior Notes described above are referred to as the “Notes”
      (such
      term shall also include any such notes issued in substitution therefor pursuant
      to Section 13 of this Agreement). The Notes shall be substantially in the form
      set out in Exhibit 1, with such changes therefrom, if any, as may be approved
      by
      the Purchasers and the Company. Certain capitalized terms used in this Agreement
      are defined in Schedule B; references to a “Schedule” or an “Exhibit” are,
      unless otherwise specified, to a Schedule or an Exhibit attached to this
      Agreement.

     

    Section 1.2. 
      Interest
      Rate. (a) The
      Notes
      shall bear interest (computed on the basis of a 360-day year of twelve 30-day
      months) on the unpaid principal thereof from the date of issuance at the
      Applicable Interest Rate then in effect payable semi-annually in arrears on
      the
      2nd day of May and November and at maturity, commencing on November 2,
      2006, until such principal

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    sum
      shall
      have become due and payable (whether at maturity, upon notice of prepayment
      or
      otherwise) and interest (so computed) on any overdue principal, interest or
      Make-Whole Amount from the due date thereof (whether by acceleration or
      otherwise) at the applicable Default Rate until paid.

     

    (b)
      If,
      during a Transition Period, the Consolidated Debt to Consolidated EBITDA ratio
      exceeds 3.5 to 1.00, as evidenced by an Officer’s Certificate delivered pursuant
      to Section 7.2(a), the interest rate payable on the Notes shall be increased
      by
      0.25%, commencing on the first day of the first fiscal quarter following the
      fiscal quarter in respect of which such Certificate was delivered and continuing
      until the Company has provided an Officer’s Certificate pursuant to Section
      7.2(a) demonstrating that, as of the end of the fiscal quarter in respect of
      which such Certificate is delivered, the Consolidated Debt to Consolidated
      EBITDA ratio is not more than 3.5 to 1.0.  Following delivery of an
      Officer’s Certificate demonstrating that the Consolidated Debt to Consolidated
      EBITDA ratio did not exceed 3.5 to 1.0, the additional 0.25% interest shall
      cease to accrue or be payable for any fiscal quarter subsequent to the fiscal
      quarter in respect of which such Certificate is delivered.

     

    
      	
              Section 2.

            	
              Sale
                and Purchase of Notes.

            

    

     

    Section 2.1. 
      Notes.
      Subject
      to the terms and conditions of this Agreement, the Company will issue and sell
      to each Purchaser and each Purchaser will purchase from the Company, at the
      Closing provided for in Section 3, the Notes in the principal amount
      specified opposite such Purchaser’s name in Schedule A at the purchase price of
      100% of the principal amount thereof. The obligations of each Purchaser
      hereunder are several and not joint obligations and each Purchaser shall have
      no
      obligation and no liability to any Person for the performance or nonperformance
      by any other Purchaser hereunder.

     

    Section
      2.2.  Subsidiary
      Guaranty. (a) The
      payment by the Company of all amounts due with respect to the Notes and the
      performance by the Company of its obligations under this Agreement will be
      absolutely and unconditionally guaranteed by the Subsidiary Guarantors pursuant
      to the Subsidiary Guaranty Agreement dated as of even date herewith, which
      shall
      be substantially in the form of Exhibit 2.2 attached hereto, and otherwise
      in
      accordance with the provisions of Section 9.6 hereof (the “Subsidiary
      Guaranty”).

     

    (b) The
      holders of the Notes agree to discharge and release any Subsidiary Guarantor
      from the Subsidiary Guaranty upon the written request of the Company,
provided
      that
      (i) such Subsidiary Guarantor has been released and discharged (or will be
      released and discharged concurrently with the release of such Subsidiary
      Guarantor under the Subsidiary Guaranty) as an obligor and guarantor under
      and
      in respect of the Bank Credit Agreement and the Company so certifies to the
      holders of the Notes in a certificate of a Responsible Officer, (ii) at the
      time of such release and discharge, the Company shall deliver a certificate
      of a
      Responsible Officer to the holders of the Notes stating that no Default or
      Event
      of Default exists or will exist upon such release, and (iii) if any fee or
      other form of consideration is given to any holder of Debt of the Company
      expressly for the purpose of such release, holders of the Notes shall receive
      equivalent consideration (a “Collateral
      Release”).

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    

     

    
      	
              Section 3.

            	
              Closing.

            

    

     

    The
      sale
      and purchase of the Notes to be purchased by each Purchaser shall occur at
      the
      offices of Chapman and Cutler LLP, 111 West Monroe Street, Chicago, Illinois
      at
      10:00 a.m. Central time, at a closing (the “Closing
      Date”)
      on
      May 2, 2006 or on such other Business Day thereafter on or prior to
      May 31, 2006 as may be agreed upon by the Company and the Purchasers. On
      the Closing Date, the Company will deliver to each Purchaser the Notes to be
      purchased by such Purchaser in the form of a single Note (or such greater number
      of Notes in denominations of at least $100,000 as such Purchaser may request)
      dated the date of the Closing Date and registered in such Purchaser’s name (or
      in the name of such Purchaser’s nominee), against delivery by such Purchaser to
      the Company or its order of immediately available funds in the amount of the
      purchase price therefor by wire transfer of immediately available funds for
      the
      account of the Company to Account Number 9428438565, at Bank of America,
      Melville, New York, ABA Number 0260-0959-3, in the Account Name of “The Hain
      Celestial Group, Inc.” If, on the Closing Date, the Company shall fail to tender
      such Notes to any Purchaser as provided above in this Section 3, or any of
      the conditions specified in Section 4 shall not have been fulfilled to any
      Purchaser’s satisfaction, such Purchaser shall, at such Purchaser’s election, be
      relieved of all further obligations under this Agreement, without thereby
      waiving any rights such Purchaser may have by reason of such failure or such
      nonfulfillment.

     

    
      	
              Section 4.

            	
              Conditions
                to Closing.

            

    

     

    Each
      Purchaser’s obligation to purchase and pay for the Notes to be sold to such
      Purchaser at the Closing is subject to the fulfillment to such Purchaser’s
      satisfaction, prior to or at the Closing, of the following conditions applicable
      to the Closing Date:

     

    Section
      4.1.Representations
      and Warranties.

     

    (a) Representations
      and Warranties of the Company. The
      representations and warranties of the Company in this Agreement shall be correct
      when made and at the time of the Closing.

     

    (b) Representations
      and Warranties of the Subsidiary Guarantors. The
      representations and warranties of the Subsidiary Guarantors in the Subsidiary
      Guaranty shall be correct when made and at the time of the Closing.

     

    Section 4.2.Performance;
      No Default. 
      The
      Company and each Subsidiary Guarantor shall have performed and complied with
      all
      agreements and conditions contained in this Agreement and the Subsidiary
      Guaranty required to be performed or complied with by the Company and each
      such
      Subsidiary Guarantor prior to or at the Closing, and after giving effect to
      the
      issue and sale of the Notes (and the application of the proceeds thereof as
      contemplated by Section 5.14), no Default or Event of Default shall have
      occurred and be continuing. Neither the Company nor any Subsidiary shall have
      entered into any transaction since the date of the Memorandum that would have
      been prohibited by Section 10 hereof had such Sections applied since such
      date.

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    

     

    Section 4.3.Compliance
      Certificates.

     

    (a)
      Officer’s
      Certificate of the Company.
      The
      Company shall have delivered to such Purchaser an Officer’s Certificate, dated
      the Closing Date, certifying that the conditions specified in Sections 4.1,
      4.2 and 4.9 have been fulfilled.

     

    (b)
      Secretary’s
      Certificate of the Company.
      The
      Company shall have delivered to such Purchaser a certificate, dated the Closing
      Date, certifying as to the resolutions attached thereto and other corporate
      proceedings relating to the authorization, execution and delivery of the Notes
      and this Agreement.

     

    (c)
      Officer’s
      Certificate of the Subsidiary Guarantors. Each
      Subsidiary Guarantor shall have delivered to such Purchaser an Officer’s
      Certificate, dated the Closing Date, certifying that the conditions specified
      in
      Sections 4.1(b), 4.2 and 4.9 have been fulfilled.

     

    (d)
      Secretary’s
      Certificate of the Subsidiary Guarantors. Each
      Subsidiary Guarantor shall have delivered to such Purchaser a certificate,
      dated
      the Closing Date, certifying as to the resolutions attached thereto and other
      corporate proceedings relating to the authorization, execution and delivery
      of
      the Subsidiary Guaranty.

     

    Section 4.4.
      Opinions
      of Counsel. Such
      Purchaser shall have received opinions in form and substance satisfactory to
      such Purchaser, dated the Closing Date (a) from Denise M. Faltischek, Esq.,
      Associate General Counsel of the Company, covering the matters set forth in
      Exhibit 4.4(a) and covering such other matters incident to the transactions
      contemplated hereby as such Purchaser or its counsel may reasonably request
      (and
      the Company hereby instructs its counsel to deliver such opinion to the
      Purchasers), (b) from Cahill Gordon
      & Reindel LLP,
      special
      counsel for the Company, covering the matters set forth in Exhibit 4.4(b)
      and covering such other matters incident to the transactions contemplated hereby
      as such Purchaser or its counsel may reasonably request (and the Company hereby
      instructs its counsel to deliver such opinion to the Purchasers), and
      (c) from Chapman and Cutler LLP, the Purchasers’ special counsel in
      connection with such transactions, substantially in the form set forth in
      Exhibit 4.4(c) and covering such other matters incident to such
      transactions as such Purchaser may reasonably request.

     

    Section 4.5. 
      Purchase
      Permitted by Applicable Law, Etc. On
      the
      date of the Closing such Purchaser’s purchase of Notes shall (a) be
      permitted by the laws and regulations of each jurisdiction to which such
      Purchaser is subject, without recourse to provisions (such as
      section 1405(a)(8) of the New York Insurance Law) permitting limited
      investments by insurance companies without restriction as to the character
      of
      the particular investment, (b) not violate any applicable law or regulation
      (including, without limitation, Regulation T, U or X of the Board of
      Governors of the Federal Reserve System) and (c) not subject such Purchaser
      to any tax, penalty or liability under or pursuant to any applicable law or
      regulation, which law or regulation was not in effect on the date hereof. If
      requested by such Purchaser, such Purchaser shall have received an Officer’s
      Certificate certifying as to such matters of fact as such Purchaser may
      reasonably specify to enable such Purchaser to determine whether such purchase
      is so permitted.

    
      
        
        

      

      
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    Section 4.6.
      Sale
      of Other Notes. 
      Contemporaneously with the Closing the Company shall sell to each other
      Purchaser and each other Purchaser shall purchase the Notes to be purchased
      by
      it at the Closing as specified in Schedule A.

     

    Section 4.7.
      Payment
      of Special Counsel Fees.
      Without
      limiting the provisions of Section 15.1, the Company shall have paid on or
      before the Closing Date, the reasonable fees, reasonable charges and reasonable
      disbursements of the Purchasers’ special counsel referred to in Section 4.4
      to the extent reflected in a statement of such counsel rendered to the Company
      at least one Business Day prior to the Closing Date.

     

    Section 4.8.
      Private
      Placement Number. A
      Private
      Placement Number issued by Standard & Poor’s CUSIP Service Bureau (in
      cooperation with the Securities Valuation Office of the National Association
      of
      Insurance Commissioners) shall have been obtained for the Notes.

     

    Section 4.9.
      Changes
      in Corporate Structure.  Neither
      the Company nor any Subsidiary Guarantor shall have changed its jurisdiction
      of
      organization or, except as reflected in Schedule 4.9, been a party to any merger
      or consolidation, or shall have succeeded to all or any substantial part of
      the
      liabilities of any other entity, at any time following the date of the most
      recent financial statements referred to in Schedule 5.5.

     

    Section
      4.10.  Subsidiary
      Guaranty. The
      Subsidiary Guaranty shall have been duly authorized, executed and delivered
      by
      each Subsidiary Guarantor, shall constitute the legal, valid and binding
      contract and agreement of each Subsidiary Guarantor and such Purchaser shall
      have received a true, correct and complete copy thereof.

     

    Section 4.11. 
      Funding
      Instructions. At
      least
      three Business Days prior to the date of the Closing, each Purchaser shall
      have
      received written instructions signed by a Responsible Officer on letterhead
      of
      the Company confirming the information specified in Section 3 including
      (i) the name and address of the transferee bank, (ii) such transferee
      bank’s ABA number and (iii) the account name and number into which the
      purchase price for the Notes is to be deposited.

     

    Section 4.12. 
      Proceedings
      and Documents. All
      corporate and other organizational proceedings in connection with the
      transactions contemplated by this Agreement and all documents and instruments
      incident to such transactions shall be reasonably satisfactory to such Purchaser
      and its special counsel, and such Purchaser and its special counsel shall have
      received all such counterpart originals or certified or other copies of such
      documents as such Purchaser or such special counsel may reasonably
      request.

     

    Section 5.        
      Representations
      and Warranties of the Company.

     

    The
      Company represents and warrants to each Purchaser that:

     

    Section 5.1. 
      Organization;
      Power and Authority.
      The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of its jurisdiction of incorporation, and is duly qualified
      as a
      foreign corporation and is in good standing in each jurisdiction in which such
      qualification is required by law, other than those jurisdictions as to

    
      
        
        

      

      
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    which
      the
      failure to be so qualified or in good standing would not, individually or in
      the
      aggregate, reasonably be expected to have a Material Adverse Effect. The Company
      has the corporate power and authority to own or hold under lease the properties
      it purports to own or hold under lease, to transact the business it transacts
      and proposes to transact, to execute and deliver this Agreement and the Notes
      and to perform the provisions hereof and thereof.

     

    Section 5.2. 
      Authorization,
      Etc. This
      Agreement and the Notes to be issued on the Closing Date have been duly
      authorized by all necessary corporate action on the part of the Company, and
      this Agreement constitutes, and upon execution and delivery thereof each such
      Note will constitute, a legal, valid and binding obligation of the Company
      enforceable against the Company in accordance with its terms, except as such
      enforceability may be limited by (i) applicable bankruptcy, insolvency,
      reorganization, moratorium or other similar laws affecting the enforcement
      of
      creditors’ rights generally and (ii) general principles of equity
      (regardless of whether such enforceability is considered in a proceeding in
      equity or at law).

     

    Section 5.3. 
      Disclosure. The
      Company, through its agent, Banc of America Securities LLC, has delivered to
      you
      and each Other Purchaser a copy of a Private Placement Memorandum, dated April,
      2006 (the “Memorandum”),
      relating to the transactions contemplated hereby. The Memorandum fairly
      describes, in all material respects, the general nature of the business and
      principal properties of the Company and its Restricted Subsidiaries. This
      Agreement, the Memorandum, the documents, certificates or other writings
      delivered to the Purchasers by or on behalf of the Company in connection with
      the transactions contemplated hereby and listed on Schedule 5.3 hereto, and
      the financial statements listed in Schedule 5.5, in each case, delivered to
      the Purchasers prior to April 13, 2006 (this Agreement, the Memorandum and
      such documents, certificates or other writings and such financial statements
      being referred to, collectively, as the “Disclosure
      Documents”),
      taken
      as a whole, do not contain any untrue statement of a material fact or omit
      to
      state any material fact necessary to make the statements therein not misleading
      in the light of the circumstances under which they were made. Except as
      disclosed in the Disclosure Documents, since June 30, 2005, there has been
      no change in the financial condition, operations, business or properties of
      the
      Company or any of its Restricted Subsidiaries except changes that individually
      or in the aggregate would not reasonably be expected to have a Material Adverse
      Effect. There is no fact known to the Company that would reasonably be expected
      to have a Material Adverse Effect that has not been set forth herein or in
      the
      Disclosure Documents.

     

    Section 5.4. 
      Organization
      and Ownership of Shares of Subsidiaries; Affiliates. (a) Schedule 5.4
      contains (except as noted therein) complete and correct lists (i) of the
      Company’s Restricted and Unrestricted Subsidiaries, showing, as to each
      Subsidiary, the correct name thereof, the jurisdiction of its organization,
      and
      the percentage of shares of each class of its capital stock or similar equity
      interests outstanding owned by the Company and each other Subsidiary, and all
      other Investments of the Company and its Restricted Subsidiaries, (ii) of
      the Company’s Affiliates, other than Subsidiaries and other than individuals
      described in clause (iii) below, and (iii) of the Company’s directors and
      senior officers.

     

    (b)
      All
      of
      the outstanding shares of capital stock or similar equity interests of each
      Subsidiary shown in Schedule 5.4 as being owned by the Company and its
      Subsidiaries have 

    
      
        
        

      

      
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    been
      validly issued, are fully paid and nonassessable and are owned by the Company
      or
      another Subsidiary free and clear of any Lien (except as otherwise disclosed
      in
      Schedule 5.4).

     

    (c)
      Each
      Subsidiary identified in Schedule 5.4 is a corporation or other legal
      entity duly organized, validly existing and in good standing under the laws
      of
      its jurisdiction of organization, and is duly qualified as a foreign corporation
      or other legal entity and is in good standing in each jurisdiction in which
      such
      qualification is required by law, other than those jurisdictions as to which
      the
      failure to be so qualified or in good standing would not, individually or in
      the
      aggregate, reasonably be expected to have a Material Adverse Effect. Each such
      Subsidiary has the corporate or other power and authority to own or hold under
      lease the properties it purports to own or hold under lease and to transact
      the
      business it transacts and proposes to transact.

     

    (d)
      No
      Subsidiary is a party to, or otherwise subject to, any legal restriction or
      any
      agreement (other than this Agreement, the agreements listed on Schedule 5.4
      and customary limitations imposed by corporate law statutes) restricting the
      ability of such Subsidiary to pay dividends out of profits or make any other
      similar distributions of profits to the Company or any of its Subsidiaries
      that
      owns outstanding shares of capital stock or similar equity interests of such
      Subsidiary.

     

    Section 5.5. 
      Financial
      Statements; Material Liabilities. The
      Company has delivered to each Purchaser copies of the financial statements
      of
      the Company and its Subsidiaries listed on Schedule 5.5. All of said
      financial statements (including in each case the related schedules and notes)
      fairly present in all material respects the consolidated financial position
      of
      the Company and its Subsidiaries as of the respective dates specified in such
      Schedule and the consolidated results of their operations and cash flows for
      the
      respective periods so specified and have been prepared in accordance with GAAP
      consistently applied throughout the periods involved except as set forth in
      the
      notes thereto (subject, in the case of any interim financial statements, to
      normal year-end adjustments). The Company and its Subsidiaries do not have
      any
      Material liabilities that are not disclosed on such financial statements or
      otherwise disclosed in the Disclosure Documents.

     

    Section 5.6. 
      Compliance
      with Laws, Other Instruments, Etc. The
      execution, delivery and performance by the Company of this Agreement and the
      Notes will not (a) contravene, result in any breach of, or constitute a
      default under, or result in the creation of any Lien in respect of any property
      of the Company or any Subsidiary under, any indenture, mortgage, deed of trust,
      loan, purchase or credit agreement, lease, corporate charter or by-laws, or
      any
      other agreement or instrument to which the Company or any Subsidiary is bound
      or
      by which the Company or any Subsidiary or any of their respective properties
      may
      be bound or affected, (b) conflict with or result in a breach of any of the
      terms, conditions or provisions of any order, judgment, decree, or ruling of
      any
      court, arbitrator or Governmental Authority applicable to the Company or any
      Subsidiary, or (c) violate any provision of any statute or other
      rule or regulation of any Governmental Authority applicable to the Company
      or any Subsidiary. 

     

    Section 5.7. 
      Governmental
      Authorizations, Etc. No
      consent, approval or authorization of, or registration, filing or declaration
      with, any Governmental Authority is required in 

    
      
        
        

      

      
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    connection
      with the execution, delivery or performance by the Company of this Agreement
      or
      the Notes. 

     

    Section 5.8. 
      Litigation;
      Observance of Agreements, Statutes and Orders. (a) There
      are no actions, suits, investigations or proceedings pending or, to the
      knowledge of the Company, threatened against or affecting the Company or any
      Restricted Subsidiary or any property of the Company or any Restricted
      Subsidiary in any court or before any arbitrator of any kind or before or by
      any
      Governmental Authority that, individually or in the aggregate, would reasonably
      be expected to have a Material Adverse Effect.

     

    (b)
      Neither
      the Company nor any Restricted Subsidiary is in default under any term of any
      agreement or instrument to which it is a party or by which it is bound, or
      any
      order, judgment, decree or ruling of any court, arbitrator or Governmental
      Authority or is in violation of any applicable law, ordinance, rule or
      regulation (including without limitation Environmental Laws or the USA Patriot
      Act) of any Governmental Authority, which default or violation, individually
      or
      in the aggregate, would reasonably be expected to have a Material Adverse
      Effect.

     

    Section 5.9. 
      Taxes. The
      Company and its Subsidiaries have filed all tax returns that are required to
      have been filed in any jurisdiction, and have paid all taxes shown to be due
      and
      payable on such returns and all other taxes and assessments levied upon them
      or
      their properties, assets, income or franchises, to the extent such taxes and
      assessments have become due and payable and before they have become delinquent,
      except for any taxes and assessments (a) the amount of which is not
      individually or in the aggregate Material or (b) the amount, applicability
      or validity of which is currently being contested in good faith by appropriate
      proceedings and with respect to which the Company or a Subsidiary, as the case
      may be, has established adequate reserves in accordance with GAAP. The Company
      knows of no basis for any other tax or assessment that would reasonably be
      expected to have a Material Adverse Effect. The charges, accruals and reserves
      on the books of the Company and its Subsidiaries in respect of federal, state
      or
      other taxes for all fiscal periods are adequate. The federal income tax
      liabilities of the Company and its Subsidiaries have been finally determined
      (whether by reason of completed audits or the statute of limitations having
      run)
      for all fiscal years up to and including the fiscal year ended June 30,
      2002.

     

    Section 5.10. 
      Title
      to Property; Leases. The
      Company and its Restricted Subsidiaries have good and sufficient title to their
      respective properties which the Company and its Restricted Subsidiaries own
      or
      purport to own that individually or in the aggregate are Material, including
      all
      such properties reflected in the most recent audited balance sheet referred
      to
      in Section 5.5 or purported to have been acquired by the Company or any
      Restricted Subsidiary after said date (except as sold or otherwise disposed
      of
      in the ordinary course of business or no longer used or useful in the conduct
      of
      their respective businesses), in each case free and clear of Liens prohibited
      by
      this Agreement. All leases that individually or in the aggregate are Material
      are valid and subsisting and are in full force and effect in all material
      respects.

    
      
        
        

      

      
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    Section 5.11. 
      Licenses,
      Permits, Etc.
      Except
      as disclosed in Schedule 5.11,

     

    (a)
      the
      Company and its Restricted Subsidiaries own or possess all licenses, permits,
      franchises, authorizations, patents, copyrights, proprietary software, service
      marks, trademarks and trade names, or rights thereto (collectively, “Intellectual
      Property”),
      that
      individually or in the aggregate are Material, without known conflict with
      the
      rights of others;

     

    (b)
      to
      the
      best knowledge of the Company, no product of the Company or any of its
      Restricted Subsidiaries infringes in any Material respect any Intellectual
      Property owned by any other Person; and

     

    (c)
      to
      the
      best knowledge of the Company, there is no Material violation by any Person
      of
      any right of the Company or any of its Restricted Subsidiaries with respect
      to
      any Intellectual Property owned or used by the Company or any of its Restricted
      Subsidiaries.

     

    Section 5.12.
      Compliance
      with ERISA. (a) The
      Company and, in the case of any ERISA controlled group penalties and
      liabilities, each ERISA Affiliate have operated and administered each Plan
      in
      compliance with all applicable laws except for such instances of noncompliance
      as have not resulted in and would not reasonably be expected to result in a
      Material Adverse Effect. Neither the Company nor any ERISA Affiliate has
      incurred any liability pursuant to Title I or IV of ERISA or the penalty or
      excise tax provisions of the Code relating to Plans, and no event, transaction
      or condition has occurred or exists that would reasonably be expected to result
      in the incurrence of any such liability by the Company, in the case of any
      ERISA
      controlled group liabilities, or any ERISA Affiliate, or in the imposition
      of
      any Lien on any of the rights, properties or assets of the Company or any ERISA
      Affiliate, in either case pursuant to Title I or IV of ERISA or to such
      penalty or excise tax provisions or to section 401(a)(29) or 412 of the
      Code or section 4068 of ERISA, other than such liabilities or Liens as would
      not
      be individually or in the aggregate Material.

     

    (b)
      The
      present value of the aggregate benefit liabilities under each of the Plans
      subject to Title IV of ERISA (other than Multiemployer Plans), determined
      as of the end of such Plan’s most recently ended plan year on the basis of the
      actuarial assumptions specified for funding purposes in such Plan’s most recent
      actuarial valuation report, did not exceed the aggregate current value of the
      assets of such Plan allocable to such benefit liabilities by more than
      $10,000,000 in the aggregate for all Plans. The term “benefit
      liabilities”
      has the
      meaning specified in section 4001 of ERISA and the terms “current
      value”
      and
“present
      value”
      have the
      meaning specified in section 3 of ERISA.

     

    (c)
      The
      Company and its ERISA Affiliates have not incurred any withdrawal liabilities
      (and are not subject to contingent withdrawal liabilities) under
      section 4201 or 4204 of ERISA in respect of Multiemployer Plans that
      individually or in the aggregate are Material.

     

    (d)
      The
      expected post-retirement benefit obligation (determined as of the last day
      of
      the Company’s most recently ended fiscal year in accordance with Financial
      Accounting Standards 

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    Board
      Statement No. 106, without regard to liabilities attributable to
      continuation coverage mandated by section 4980B of the Code) of the Company
      and its Subsidiaries is not Material.

     

    (e)
      The
      execution and delivery of this Agreement and the issuance and sale of the Notes
      hereunder will not involve any transaction that is subject to the prohibitions
      of Section 406(a) of ERISA or in connection with which a tax would be
      imposed pursuant to Section 4975(c)(1)(A)-(D) of the Code. The
      representation by the Company in the first sentence of this Section 5.12(e)
      is made in reliance upon and subject to the accuracy of each Purchaser’s
      representation in Section 6.3 as to the sources of the funds to be used to
      pay the purchase price of the Notes to be purchased by such
      Purchaser.

     

    Section 5.13. 
      Private
      Offering by the Company. Neither
      the Company nor anyone acting on the Company’s behalf has offered the Notes or
      any similar securities for sale to, or solicited any offer to buy any of the
      same from, or otherwise approached or negotiated in respect thereof with, any
      Person other than the Purchasers and not more than 50 other Institutional
      Investors, each of which has been offered the Notes in connection with a private
      sale for investment. Neither the Company nor anyone acting on its behalf has
      taken, or will take, any action that would subject the issuance or sale of
      the
      Notes to the registration requirements of Section 5 of the Securities Act
      or to the registration requirements of any securities or blue sky laws of any
      applicable jurisdiction.

     

    Section 5.14. 
      Use
      of Proceeds; Margin Regulations. The
      Company will apply the proceeds of the sale of the Notes to refinance existing
      Debt and for general corporate purposes of the Company. No part of the proceeds
      from the sale of the Notes hereunder will be used, directly or indirectly,
      for
      the purpose of buying or carrying any margin stock within the meaning of
      Regulation U of the Board of Governors of the Federal Reserve System
      (12 CFR 221), or for the purpose of buying or carrying or trading in
      any securities under such circumstances as to involve the Company in a violation
      of Regulation X of said Board (12 CFR 224) or to involve any broker or
      dealer in a violation of Regulation T of said Board (12 CFR 220).
      Margin stock does not constitute more than 5% of the value of the consolidated
      assets of the Company and its Subsidiaries and the Company does not have any
      present intention that margin stock will constitute more than 5% of the value
      of
      such assets. As used in this Section, the terms “margin
      stock”
      and
“purpose
      of buying or carrying”
      shall
      have the meanings assigned to them in said Regulation U.

     

    Section 5.15. 
      Existing
      Debt; Future Liens.
      (a) Except as described therein, Schedule 5.15 sets forth a complete
      and correct list of all outstanding Debt of the Company and its Restricted
      Subsidiaries as of March 31, 2006, since which date there has been no
      Material change in the amounts, interest rates, sinking funds, installment
      payments or maturities of the Debt of the Company or its Restricted
      Subsidiaries. Neither the Company nor any Restricted Subsidiary is in default
      and no waiver of default is currently in effect, in the payment of any principal
      or interest on any Debt of the Company or such Restricted Subsidiary, and no
      event or condition exists with respect to any Debt of the Company or any
      Restricted Subsidiary, that would permit (or that with notice or the lapse
      of
      time, or both, would permit) one or more Persons to cause such Debt to become
      due and payable before its stated maturity or before its regularly scheduled
      dates of payment.

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    

     

    (b)
      Except
      as
      disclosed in Schedule 5.15, neither the Company nor any Restricted
      Subsidiary has agreed or consented to cause or permit in the future (upon the
      happening of a contingency or otherwise) any of its property, whether now owned
      or hereafter acquired, to be subject to a Lien not permitted by
      Section 10.3.

     

    (c)
      Neither
      the Company nor any Subsidiary is a party to, or otherwise subject to any
      provision contained in, any instrument evidencing Debt of the Company or such
      Subsidiary, any agreement relating thereto or any other agreement (including,
      but not limited to, its charter or other organizational document) which limits
      the amount of, or otherwise imposes restrictions on the incurring of, Debt
      of
      the Company, except as specifically indicated in
      Schedule 5.15.

     

    Section 5.16. 
      Foreign
      Assets Control Regulations, Etc. (a) Neither
      the sale of the Notes by the Company hereunder nor its use of the proceeds
      thereof will violate the Trading with the Enemy Act, as amended, or any of
      the
      foreign assets control regulations of the United States Treasury Department
      (31
      CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or
      executive order relating thereto.

     

    (b)
      Neither
      the Company nor any Subsidiary is a Person described or designated in the
      Specially Designated Nationals and Blocked Persons List of the Office of Foreign
      Assets Control or in Section 1 of the Anti-Terrorism Order or, to the
      knowledge of the Company, engages in any dealings or transactions with any
      such
      Person. The Company and its Subsidiaries are in compliance, in all material
      respects, with the USA Patriot Act.

     

    (c)
      No
      part
      of the proceeds from the sale of the Notes hereunder will be used, directly
      or
      indirectly, for any payments to any governmental official or employee, political
      party, official of a political party, candidate for political office, or anyone
      else acting in an official capacity, in order to obtain, retain or direct
      business or obtain any improper advantage, in violation of the United States
      Foreign Corrupt Practices Act of 1977, as amended, assuming in all cases that
      such Act applies to the Company.

     

    Section 5.17. 
      Status
      under Certain Statutes. Neither
      the Company nor any Restricted Subsidiary is an “investment company” registered
      or required to be registered under the Investment Company Act of 1940, as
      amended, or is subject to regulation under the ICC Termination Act of 1995,
      as
      amended, or the Federal Power Act, as amended.

     

    Section 5.18.Environmental
      Matters.
      (a) Neither the Company nor any Restricted Subsidiary has knowledge of any
      liability or has received any written notice of any liability under or violation
      of any Environmental Law, and no proceeding has been instituted alleging any
      liability under or violation of any Environmental Law against the Company or
      any
      of its Restricted Subsidiaries or any of their respective real properties now
      or
      formerly owned, leased or operated by any of them, or other assets, except,
      in
      each case, such as would not reasonably be expected to result in a Material
      Adverse Effect.

     

    (b)
      Neither
      the Company nor any Restricted Subsidiary has knowledge of any facts which
      would
      give rise to any liability under or violation of any Environmental Law related
      to real properties or other assets now or formerly owned, leased or operated
      by
      any of them or 

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    their
      use, except, in each case, such as would not reasonably be expected to result
      in
      a Material Adverse Effect.

     

    (c)
      Neither
      the Company nor any of its Restricted Subsidiaries has stored any Hazardous
      Materials on real properties now or formerly owned, leased or operated by any
      of
      them or has disposed of any Hazardous Materials in each case in violation of
      any
      Environmental Laws in each case in any manner that would reasonably be expected
      to result in a Material Adverse Effect.

     

    (d)
      All
      buildings on all real properties now owned, leased or operated by the Company
      or
      any of its Restricted Subsidiaries are in compliance with applicable
      Environmental Laws, except where failure to comply would not reasonably be
      expected to result in a Material Adverse Effect.

     

    Section 5.19.
      Notes
      Rank Pari Passu.
      The
      obligations of the Company under this Agreement and the Notes rank pari
      passu
      in right
      of payment with all other senior unsecured Debt (actual or contingent) of the
      Company, including, without limitation, all senior unsecured Debt of the Company
      described in Schedule 5.15 hereto.

     

    
      	
              Section 6.

            	
              Representations
                of the Purchaser.

            

    

     

    Section 6.1. 
      Purchase
      for Investment. Each
      Purchaser severally represents that it is purchasing the Notes for its own
      account or for one or more separate accounts maintained by it or for the account
      of one or more pension or trust funds and not with a view to the distribution
      thereof, provided
      that the
      disposition of such Purchaser’s or such pension or trust funds’ property shall
      at all times be within such Purchaser’s or such pension or trust funds’
control.

     

    Section 6.2. 
      Accredited
      Investor.
      Each
      Purchaser represents that it is an “accredited investor” (as defined in Rule
      501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) acting
      for
      its own account (and not for the account of others) or as a fiduciary or agent
      for others (which others are also “accredited investors”). Each
      Purchaser further represents that such Purchaser has had the opportunity to
      ask
      questions of the Company and received answers concerning the terms and
      conditions of the sale of the Notes. Each Purchaser understands that the Notes
      have not been registered under the Securities Act and may be resold only if
      registered pursuant to the provisions of the Securities Act or if an exemption
      from registration is available, except under circumstances where neither such
      registration nor such an exemption is required by law, and that the Company
      is
      not required to register the Notes. 

     

    Section 6.3. 
      Source
      of Funds.
      Each
      Purchaser severally represents that at least one of the following statements
      is
      an accurate representation as to each source of funds (a “Source”)
      to be
      used by such Purchaser to pay the purchase price of the Notes to be purchased
      by
      such Purchaser hereunder:

     

    (a)
      the
      Source is an “insurance company general account” (as the term is defined in the
      United States Department of Labor’s Prohibited Transaction Exemption
      (“PTE”)
      95-60)
      in respect of which the reserves and liabilities (as defined by the annual
      

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    statement
      for life insurance companies approved by the National Association of Insurance
      Commissioners (the “NAIC
      Annual Statement”))
      for
      the general account contract(s) held by or on behalf of any employee benefit
      plan together with the amount of the reserves and liabilities for the general
      account contract(s) held by or on behalf of any other employee benefit plans
      maintained by the same employer (or affiliate thereof as defined in PTE 95-60)
      or by the same employee organization in the general account do not exceed 10%
      of
      the total reserves and liabilities of the general account (exclusive of separate
      account liabilities) plus surplus as set forth in the NAIC Annual Statement
      filed with such Purchaser’s state of domicile; or

     

    (b)
      the
      Source is a separate account that is maintained solely in connection with such
      Purchaser’s fixed contractual obligations under which the amounts payable, or
      credited, to any employee benefit plan (or its related trust) that has any
      interest in such separate account (or to any participant or beneficiary of
      such
      plan (including any annuitant)) are not affected in any manner by the investment
      performance of the separate account; or

     

    (c)
      the
      Source is either (i) an insurance company pooled separate account, within the
      meaning of PTE 90-1 or (ii) a bank collective investment fund, within the
      meaning of the PTE 91-38 and, except as disclosed by such Purchaser to the
      Company in writing pursuant to this clause (c), no employee benefit plan or
      group of plans maintained by the same employer or employee organization
      beneficially owns more than 10% of all assets allocated to such pooled separate
      account or collective investment fund; or

     

    (d)
      the
      Source constitutes assets of an “investment fund” (within the meaning of Part V
      of PTE 84-14 (the “QPAM
      Exemption”))
      managed by a “qualified professional asset manager” or “QPAM” (within the
      meaning of Part V of the QPAM Exemption), no employee benefit plan’s assets that
      are included in such investment fund, when combined with the assets of all
      other
      employee benefit plans established or maintained by the same employer or by
      an
      affiliate (within the meaning of Section V(c)(1) of the QPAM Exemption) of
      such
      employer or by the same employee organization and managed by such QPAM, exceed
      20% of the total client assets managed by such QPAM, the conditions of Part
      I(c)
      and (g) of the QPAM Exemption are satisfied, neither the QPAM nor a person
      controlling or controlled by the QPAM (applying the definition of “control” in
      Section V(e) of the QPAM Exemption) owns a 5% or more interest in the Company
      and (i) the identity of such QPAM and (ii) the names of all employee benefit
      plans whose assets are included in such investment fund have been disclosed
      to
      the Company in writing pursuant to this clause (d); or

     

    (e)
      the
      Source constitutes assets of a “plan(s)” (within the meaning of Section IV of
      PTE 96-23 (the “INHAM
      Exemption”))
      managed by an “in-house asset manager” or “INHAM” (within the meaning of Part IV
      of the INHAM exemption), the conditions of Part I(a), (g) and (h) of the INHAM
      Exemption are satisfied, neither the INHAM nor a person controlling or
      controlled by the INHAM (applying the definition of “control” in Section IV(d)
      of the INHAM Exemption) owns a 5% or more interest in the Company and (i) the
      identity of such INHAM and (ii) the name(s) of the employee benefit plan(s)
      

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    whose
      assets constitute the Source have been disclosed to the Company in writing
      pursuant to this clause (e); or

     

    (f)
      the
      Source is a governmental plan; or

     

    (g)
      the
      Source is one or more employee benefit plans, or a separate account or trust
      fund comprised of one or more employee benefit plans, each of which has been
      identified to the Company in writing pursuant to this clause (g);
      or

     

    (h)
      the
      Source does not include assets of any employee benefit plan, other than a plan
      exempt from the coverage of ERISA.

     

    As
      used
      in this Section 6.3, the terms “employee
      benefit plan,” “governmental
      plan,”
      and
“separate
      account”
      shall
      have the respective meanings assigned to such terms in section 3 of
      ERISA.

     

    
      	
              Section 7.

            	
              Information
                as to Company.

            

    

     

    Section 7.1. 
      Financial
      and Business Information.
      The
      Company shall deliver to each holder of Notes that is an Institutional
      Investor:

     

    (a)
      Quarterly
      Statements—
within
      60 days after the end of each quarterly fiscal period in each fiscal year of
      the
      Company (other than the last quarterly fiscal period of each such fiscal year),
      

     

    (i)
      a
      consolidated balance sheet of the Company and its Subsidiaries as at the end
      of
      such quarter, and

     

    (ii)
      consolidated
      statements of income, changes in shareholders’ equity and cash flows of the
      Company and its Subsidiaries, for such quarter and (in the case of the second
      and third quarters) for the portion of the fiscal year ending with such quarter,
      

     

    setting
      forth in each case in comparative form the figures for the corresponding periods
      in the previous fiscal year, all in reasonable detail, prepared in accordance
      with GAAP applicable to quarterly financial statements generally, and certified
      by a Senior Financial Officer as fairly presenting, in all material respects,
      the financial position of the companies being reported on and their results
      of
      operations and cash flows, subject to changes resulting from year-end
      adjustments, provided
      that
      filing with the Securities and Exchange Commission within the time period
      specified above the Company’s Quarterly Report on Form 10-Q prepared in
      compliance with the requirements therefor shall be deemed to satisfy the
      requirements of this Section 7.1(a);

     

    (b)
      Annual
      Statements—
within
      105 days after the end of each fiscal year of the Company, 

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    

     

    (i)
      a
      consolidated balance sheet of the Company and its Subsidiaries, as at the end
      of
      such year, and

     

    (ii)
      consolidated
      statements of income, changes in shareholders’ equity and cash flows of the
      Company and its Subsidiaries, for such year,

     

    setting
      forth in each case in comparative form the figures for the previous fiscal
      year,
      all in reasonable detail, prepared in accordance with GAAP, and accompanied
      by
      an opinion thereon of independent certified public accountants of recognized
      national standing, which opinion shall state that such financial statements
      present fairly, in all material respects, the financial position of the
      companies being reported upon and their results of operations and cash flows
      and
      have been prepared in conformity with GAAP, and that the examination of such
      accountants in connection with such financial statements has been made in
      accordance with generally accepted auditing standards, and that such audit
      provides a reasonable basis for such opinion in the circumstances, provided
      that
      filing with the Securities and Exchange Commission within the time period
      specified above of the Company’s Annual Report on Form 10-K for such fiscal year
      (together with the Company’s annual report to shareholders, if any, prepared
      pursuant to Rule 14a-3 under the Exchange Act) prepared in accordance with
      the requirements therefor shall be deemed to satisfy the requirements of this
      Section 7.1(b);

     

    (c)
      Consolidated
      Statements of Unrestricted Subsidiaries - if
      one or
      more Unrestricted Subsidiaries shall either (i) own more than 10% of the total
      consolidated assets of the Company and its Subsidiaries, or (ii) account for
      more than 10% of the consolidated gross revenues of the Company and its
      Subsidiaries, determined in each case in accordance with GAAP, then, within
      the
      respective periods provided in Section 7.1(a) and (b) above, the Company shall
      deliver to each holder of Notes that is an Institutional Investor, unaudited
      financial statements of the character and for the dates and periods as in said
      Sections 7.1(a) and (b) covering such group of Unrestricted Subsidiaries (on
      a
      consolidated basis), together with a consolidating statement reflecting
      eliminations or adjustments required to reconcile the financial statements
      of
      such group of Unrestricted Subsidiaries to the financial statements delivered
      pursuant to Sections 7.1(a) and (b); 

     

    (d)
      SEC
      and Other Reports—
except
      for filings referred to in Section 7.1(a) and (b) above, promptly upon
      their becoming available and, to the extent applicable, one copy of
      (i) each financial statement, report, notice or proxy statement sent by the
      Company or any Subsidiary to public securities holders generally, and
      (ii) each regular or periodic report, each registration statement (without
      exhibits except as expressly requested by such holder), and each prospectus
      and
      all amendments thereto filed by the Company or any Subsidiary with the
      Securities and Exchange Commission and of all press releases and other
      statements made available generally by the Company or any Subsidiary to the
      public concerning developments that are Material; provided,
      that the
      Company shall be deemed to have made such delivery of the items in clauses
      (i)
      and (ii) of this Section 7.1(d) if it shall have timely made such items
      available on “EDGAR”;

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    

     

    (e)
      Notice
      of Default or Event of Default—
      promptly, and in any event within five Business Days after a Responsible Officer
      becomes aware of the existence of any Default or Event of Default or the
      occurrence or existence of any event or circumstance that in the reasonable
      judgment of the Company is likely to become a Default or Event of Default,
      a
      written notice specifying the nature and period of existence thereof and what
      action the Company is taking or proposes to take with respect
      thereto;

     

    (f)
      ERISA
      Matters—
      promptly, and in any event within five Business Days after a Responsible Officer
      becomes aware of any of the following, a written notice setting forth the nature
      thereof and the action, if any, that the Company or an ERISA Affiliate proposes
      to take with respect thereto:

     

    (i)
      with
      respect to any Plan, any reportable event, as defined in 

     

    Section 4043(c)
      of ERISA and the regulations thereunder, for which notice thereof has not been
      waived pursuant to such regulations as in effect on the date thereof and which
      would reasonably be expected to result in a Material Adverse Effect;
      or

     

    (ii)
      the
      taking by the PBGC of steps to institute, or the threatening by the PBGC of
      the
      institution of, proceedings under Section 4042 of ERISA for the termination
      of, or the appointment of a trustee to administer, any Plan, or the receipt
      by
      the Company or any ERISA Affiliate of a notice from a Multiemployer Plan that
      such action has been taken by the PBGC with respect to such Multiemployer Plan;
      or

     

    (iii)
      any
      event, transaction or condition that would result in the incurrence of any
      liability by the Company (or in the case of any ERISA controlled group
      liabilities, any ERISA Affiliate) pursuant to Title I or IV of ERISA or the
      imposition of a penalty or excise tax under the provisions of the Code relating
      to employee benefit plans, or the imposition of any Lien on any of the rights,
      properties or assets of the Company or any ERISA Affiliate pursuant to
      Title I or IV of ERISA or such penalty or excise tax provisions, if such
      liability or Lien, taken together with any other such liabilities or Liens
      then
      existing, would reasonably be expected to have a Material Adverse
      Effect;

     

    (g)
      Notices
      from Governmental Authority —
      promptly, and in any event within 30 days of receipt thereof, copies of any
      notice to the Company or any Subsidiary from any federal or state Governmental
      Authority relating to any order, ruling, statute or other law or regulation
      that
      would reasonably be expected to have a Material Adverse Effect; and

     

    (h)
      Requested
      Information—
with
      reasonable promptness, such other data and information relating to the business,
      operations, affairs, financial condition, assets or properties of the Company
      or
      any of its Subsidiaries or relating to the ability of the Company to perform
      its
      obligations hereunder and under the Notes as from time to time may be reasonably
      requested by any such holder of Notes or such information regarding

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

     

    the
      Company required to satisfy the requirements of 17 C.F.R. §230.144A, as
      amended from time to time, in connection with any contemplated transfer of
      the
      Notes.

     

    Section 7.2. 
      Officer’s
      Certificate.
      Each
      set of financial statements delivered to a holder of Notes pursuant to
      Section 7.1(a) or Section 7.1(b) hereof shall be accompanied by a
      certificate of a Senior Financial Officer setting forth:

     

    (a)
      Covenant
      Compliance—
the
      information required in order to establish whether the Company was in compliance
      with the requirements of Section 10.1 through Section 10.5 hereof,
      inclusive, during the quarterly or annual period covered by the statements
      then
      being furnished (including with respect to each such Section, where applicable,
      the calculations of the maximum or minimum amount, ratio or percentage, as
      the
      case may be, permissible under the terms of such Sections, and the calculation
      of the amount, ratio or percentage then in existence); and

     

    (b)
      Event
      of Default—
a
      statement that such officer has reviewed the relevant terms hereof and such
      review shall not have disclosed the existence during the quarterly or annual
      period covered by the statements then being furnished of any condition or event
      that constitutes a Default or an Event of Default or, if any such condition
      or
      event existed or exists, specifying the nature and period of existence thereof
      and what action the Company shall have taken or proposes to take with respect
      thereto.

     

    Section 7.3. 
      Visitation.
      The
      Company shall permit the representatives of each holder of Notes that is an
      Institutional Investor:

     

    (a)
      No
      Default—
if
      no
      Default or Event of Default then exists, at the expense of such holder and
      upon
      reasonable prior notice to the Company, to visit the principal executive office
      of the Company, to discuss the affairs, finances and accounts of the Company
      and
      its Subsidiaries with the Company’s officers, and (with the consent of the
      Company, which consent will not be unreasonably withheld) its independent public
      accountants, and (with the consent of the Company, which consent will not be
      unreasonably withheld) to visit the other offices and properties of the Company
      and each Restricted Subsidiary, all at such reasonable times during normal
      business hours and as often as may be reasonably requested in writing;
      and

     

    (b)
      Default—
if
      a
      Default or Event of Default then exists, at the expense of the Company, to
      visit
      and inspect any of the offices or properties of the Company or any Restricted
      Subsidiary, to examine (other than information governed by a written
      confidentiality agreement which prohibits such access) all their respective
      books of account, records, reports and other papers, to make copies and extracts
      therefrom, and to discuss their respective affairs, finances and accounts with
      their respective officers and independent public accountants (and by this
      provision the Company authorizes said accountants to discuss the affairs,
      finances and accounts of the Company and its Subsidiaries), all at such times
      during normal business hours and as often as may be requested.

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

     

    

     

    
      	
              Section 8.

            	
              Payment
                of the Notes.

            

    

     

    Section 8.1. 
      Required
      Prepayments. The
      entire unpaid principal amount of the Notes shall become due and payable on
      May 2, 2016.

     

    Section 8.2. 
      Optional
      Prepayments with Make-Whole Amount.
      The
      Company may, at its option, upon notice as provided below, prepay at any time
      all, or from time to time any part of the Notes, in an amount not less than
      10%
      of the original aggregate principal amount of the Notes to be prepaid in the
      case of a partial prepayment, at 100% of the principal amount so prepaid,
      together with accrued and unpaid interest thereon to the date of such
      prepayment, plus the Make-Whole Amount determined for the prepayment date with
      respect to such principal amount of each Note then outstanding. The Company
      will
      give each holder of Notes written notice of each optional prepayment under
      this
      Section 8.2 not less than 15 days and not more than 60 days prior to the
      date fixed for such prepayment. Each such notice shall specify such date, the
      aggregate principal amount of the Notes to be prepaid on such date, the
      principal amount of each Note held by such holder to be prepaid (determined
      in
      accordance with Section 8.3), and the interest to be paid on the prepayment
      date with respect to such principal amount being prepaid, and shall be
      accompanied by a certificate of a Senior Financial Officer as to the estimated
      respective Make-Whole Amount due in connection with such prepayment (calculated
      as if the date of such notice were the date of the prepayment), setting forth
      the details of such computation. Two Business Days prior to such prepayment,
      the
      Company shall deliver to each holder of Notes to be prepaid a certificate of
      a
      Senior Financial Officer specifying the calculation of each such Make-Whole
      Amount as of the specified prepayment date.

     

    Section 8.3. 
      Allocation
      of Partial Prepayments.
      In the
      case of each partial prepayment of the Notes pursuant to the provisions of
      Section 8.2, the principal amount of the Notes shall be allocated among all
      of the Notes at the time outstanding in proportion, as nearly as practicable,
      to
      the respective unpaid principal amounts thereof.

     

    Section 8.4. 
      Rejectable
      Offer of Prepayment Following Certain Asset Sales.
      If the
      Company uses a portion of the net proceeds received from a sale of a
“substantial part” of its assets to prepay or retire Senior Debt of the Company
      and/or its Restricted Subsidiaries in accordance with the terms of
      Section 10.4(2) hereof, the Company shall offer to prepay each outstanding
      Note in a principal amount that equals the Ratable Portion for such Note, and
      (ii) any such prepayment of the Notes shall be made at par, together with
      accrued interest thereon to the date of such prepayment, but without the payment
      of the Make-Whole Amount. Any offer of prepayment of the Notes pursuant to
      this
      Section 8.4 shall be given to each holder of the Notes by written notice
      delivered not less than fifteen (15) days and not more than sixty (60) days
      prior to the proposed prepayment date. Each such notice shall state that it
      is
      given pursuant to this Section 8.4 and that the offer set forth in such
      notice must be accepted by such holder in writing and shall also set forth
      (i) the prepayment date, (ii) a description of the circumstances which
      give rise to the proposed prepayment, and (iii) a calculation of the
      Ratable Portion for such holder’s Notes. Each holder of the Notes which desires
      to have its Notes prepaid shall notify the Company in writing delivered not
      less
      than three (3) Business Days prior to the proposed prepayment date of its
      acceptance of such offer of prepayment. A failure by a holder of Notes to

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

     

    respond
      to an offer of prepayment made pursuant to this Section 8.4 shall be deemed
      to
      constitute a rejection of such offer by such holder. 

     

    Section 8.5. 
      Maturity;
      Surrender, Etc.
      In the
      case of each prepayment of Notes pursuant to this Section 8, the principal
      amount of each Note to be prepaid shall mature and become due and payable on
      the
      date fixed for such prepayment, together with interest on such principal amount
      accrued to such date and the applicable Make-Whole Amount. From and after such
      date, unless the Company shall fail to pay such principal amount when so due
      and
      payable, together with the interest and Make-Whole Amount as aforesaid, interest
      on such principal amount shall cease to accrue. Any Note paid or prepaid in
      full
      shall be surrendered to the Company and cancelled and shall not be reissued,
      and
      no Note shall be issued in lieu of any prepaid principal amount of any
      Note.

     

    Section 8.6. 
      Purchase
      of Notes.
      The
      Company will not and will not permit any Affiliate to purchase, redeem, prepay
      or otherwise acquire, directly or indirectly, any of the outstanding Notes
      except (a) upon the payment or prepayment of the Notes in accordance with the
      terms of this Agreement and the Notes or (b) pursuant to a written offer to
      purchase any outstanding Notes made by the Company or an Affiliate pro rata
      to
      the holders of the Notes upon the same terms and conditions. The Company will
      promptly cancel all Notes acquired by it or any Affiliate pursuant to any
      payment, prepayment or purchase of Notes pursuant to any provision of this
      Agreement and no Notes may be issued in substitution or exchange for any such
      Notes.

     

    Section 8.7. 
      Make-Whole
      Amount for the Notes.
      The
      term “Make-Whole
      Amount”
      means
      with respect to any Note an amount equal to the excess, if any, of the
      Discounted Value of the Remaining Scheduled Payments with respect to the Called
      Principal of such Note, minus
      the
      amount of such Called Principal, provided
      that the
      Make-Whole Amount may in no event be less than zero. For the purposes of
      determining the Make-Whole Amount, the following terms have the following
      meanings with respect to the Called Principal of such Note:

     

    “Called
      Principal”
      means,
      the principal of any Note that is to be prepaid pursuant to Section 8.2 or
      has become or is declared to be immediately due and payable pursuant to
      Section 12.1, as the context requires.

     

    “Discounted
      Value”
      means,
      the amount obtained by discounting all Remaining Scheduled Payments from their
      respective scheduled due dates to the Settlement Date with respect to such
      Called Principal, in accordance with accepted financial practice and at a
      discount factor (applied on the same periodic basis as that on which interest
      on
      such Note is payable) equal to the Reinvestment Yield.

     

    “Reinvestment
      Yield”
      means,
      0.50% plus the yield to maturity calculated by using (i) the yields
      reported, as of 10:00 A.M. (New York City time) on the second Business
      Day preceding the Settlement Date on screen “PX-1” on the Bloomberg Financial
      Market Service (or such other information service as may replace Bloomberg)
      for
      actively traded U.S. Treasury securities
      having a
      maturity equal to the Remaining Average Life of such Called Principal as of
      such
      Settlement Date,
      or
      (ii) if such yields are not reported as of such time or the yields reported
      as of such time are not ascertainable, the Treasury 

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

     

    Constant
      Maturity Series Yields reported, for the latest day for which such yields have
      been so reported as of the second Business Day preceding the Settlement Date,
      in
      Federal Reserve Statistical Release H.15 (519) (or any comparable successor
      publication)
      for
      actively traded U.S. Treasury securities having a constant maturity equal to
      the
      Remaining Average Life of such Called Principal as of such Settlement Date.
      In
      either
      case,
      the
      yield will be determined, if necessary, by (a) converting U.S. Treasury
      bill quotations to bond-equivalent yields in accordance with accepted financial
      practice and (b) interpolating linearly on a straight line basis between
      (1) the actively traded U.S. Treasury security with the maturity closest to
      and greater than the Remaining Average Life and (2) the actively traded
      U.S. Treasury security with the maturity closest to and less than the Remaining
      Average Life.

     

    “Remaining
      Average Life”
      means,
      the number of years (calculated to the nearest one-twelfth year) obtained by
      dividing (i) such Called Principal into (ii) the sum of the products
      obtained by multiplying (a) the principal component of each Remaining
      Scheduled Payment by (b) the number of years (calculated to the nearest
      one-twelfth year) that will elapse between the Settlement Date and the scheduled
      due date of such Remaining Scheduled Payment.

     

    “Remaining
      Scheduled Payments”
      means,
      all payments of such Called Principal and interest thereon that would be due
      after the Settlement Date if no payment of such Called Principal were made
      prior
      to its scheduled due date, provided
      that if
      such Settlement Date is not a date on which interest payments are due to be
      made
      under the terms of such Note, then the amount of the next succeeding scheduled
      interest payment will be reduced by the amount of interest accrued to such
      Settlement Date and required to be paid on such Settlement Date pursuant to
      Section 8.2 or 12.1.

     

    “Settlement
      Date”
      means,
      the date on which such Called Principal is to be prepaid pursuant to
      Section 8.2 or has become or is declared to be immediately due and payable
      pursuant to Section 12.1, as the context requires.

     

    
      	
              Section 9.

            	
              Affirmative
                Covenants.

            

    

     

    The
      Company covenants that so long as any of the Notes are outstanding:

     

    Section 9.1. 
      Compliance
      with Law.
      Without
      limiting Section 10.7, the Company will, and will cause each of its
      Subsidiaries to, comply with all laws, ordinances or governmental rules or
      regulations to which each of them is subject, including, without limitation,
      ERISA, the USA Patriot Act and Environmental Laws, and will obtain and maintain
      in effect all licenses, certificates, permits, franchises and other governmental
      authorizations necessary to the ownership of their respective properties or
      to
      the conduct of their respective businesses, in each case to the extent necessary
      to ensure that non-compliance with such laws, ordinances or governmental rules
      or regulations or failures to obtain or maintain in effect such licenses,
      certificates, permits, franchises and other governmental authorizations would
      not, individually or in the aggregate, reasonably be expected to have a Material
      Adverse Effect.

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

     

    

     

    Section 9.2. 
      Insurance.
      The
      Company will, and will cause each of its Restricted Subsidiaries to, maintain,
      with financially sound and reputable insurers, insurance with respect to their
      respective properties and businesses against such casualties and contingencies,
      of such types, on such terms and in such amounts (including deductibles,
      co-insurance and self-insurance, if adequate reserves are maintained with
      respect thereto) as is customary in the case of entities of established
      reputations engaged in the same or a similar business and similarly situated
      except for any non-maintenance that would not reasonably be expected to have
      a
      Material Adverse Effect. 

     

    Section 9.3. 
      Maintenance
      of Properties.
      The
      Company will, and will cause each of its Restricted Subsidiaries to, maintain
      and keep, or cause to be maintained and kept, their respective properties in
      good repair, working order and condition (other than ordinary wear and tear),
      so
      that the business carried on in connection therewith may be properly conducted
      at all times, provided
      that
      this Section shall not prevent the Company or any Restricted Subsidiary
      from discontinuing the operation and the maintenance of any of its properties
      if
      such discontinuance is desirable in the conduct of its business and the Company
      has concluded that such discontinuance would not, individually or in the
      aggregate, reasonably be expected to have a Material Adverse
      Effect.

     

    Section 9.4. 
      Payment
      of Taxes and Claims.
      The
      Company will, and will cause each of its Subsidiaries to, file all tax returns
      required to be filed in any jurisdiction and to pay and discharge all taxes
      shown to be due and payable on such returns and all other taxes, assessments,
      governmental charges, or levies imposed on them or any of their properties,
      assets, income or franchises, to the extent such taxes and assessments have
      become due and payable and before they have become delinquent and all claims
      for
      which sums have become due and payable that have or might become a Lien on
      properties or assets of the Company or any Subsidiary not permitted by
      Section 10.3, provided
      that
      neither the Company nor any Subsidiary need pay any such tax or assessment
      or
      claims if (i) the amount, applicability or validity thereof is contested by
      the Company or such Subsidiary on a timely basis in good faith and in
      appropriate proceedings, and the Company or a Subsidiary has established
      adequate reserves therefor in accordance with GAAP on the books of the Company
      or such Subsidiary or (ii) the non-filing or nonpayment, as the case may
      be, of all such taxes and assessments in the aggregate would not reasonably
      be
      expected to have a Material Adverse Effect.

     

    Section 9.5. 
      Corporate
      Existence, Etc.
      Subject
      to Sections 10.4
      and
      10.5, the Company will at all times preserve and keep in full force and effect
      its corporate existence, and will at all times preserve and keep in full force
      and effect the corporate existence of each of its Restricted Subsidiaries
      (unless merged into the Company or a Restricted Subsidiary) and all rights
      and
      franchises of the Company and its Restricted Subsidiaries unless, in the good
      faith judgment of the Company, the termination of or failure to preserve and
      keep in full force and effect such corporate existence, right or franchise
      would
      not, individually or in the aggregate, reasonably be expected to have a Material
      Adverse Effect.

     

    Section
      9.6.  Designation
      of Subsidiaries. The
      Company may from time to time cause any Subsidiary (other than a Subsidiary
      Guarantor) to be designated as an Unrestricted Subsidiary or any Unrestricted
      Subsidiary to be designated a Restricted Subsidiary; provided,

    
      
        
        

      

      
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    however,
      that at
      the time of such designation and immediately after giving effect thereto, (a)
      no
      Default or Event of Default exists or would exist under the terms of this
      Agreement, (b) the Company and its Restricted Subsidiaries would be in
      compliance with all of the covenants set forth in this Section 9 and Section
      10
      if tested on the date of such action and (c) in the case of a Restricted
      Subsidiary being designated as an Unrestricted Subsidiary, such
      Restricted Subsidiary does not own, directly or indirectly, any Debt or capital
      stock of the Company or any other Restricted Subsidiary and
      provided,
      further,
      that
      once a Subsidiary has been designated an Unrestricted Subsidiary, it shall
      not
      thereafter be redesignated as a Restricted Subsidiary on more than one occasion
      and once a Subsidiary has been designated a Restricted Subsidiary, it shall
      not
      thereafter be redesignated as an Unrestricted Subsidiary on more than one
      occasion and provided,
      further,
      the
      designation of a Restricted Subsidiary as an Unrestricted Subsidiary will be
      considered as a sale of such Subsidiary for purposes of Section 10.4.
      Within
      ten (10) days following any designation described above, the Company will
      deliver to you a notice of such designation accompanied by a certificate signed
      by a Senior Financial Officer of the Company certifying compliance with all
      requirements of this Section 9.6 and setting forth all information required
      in
      order to establish such compliance.

     

    Section 9.7. 
      Notes
      to Rank Pari Passu. The
      Notes
      and all other obligations of the Company under this Agreement are and at all
      times shall remain direct and unsecured obligations of the Company ranking
      pari
      passu
      as
      against the assets of the Company with all other Notes from time to time issued
      and outstanding hereunder without any preference among themselves and
pari
      passu
      with all
      other present and future unsecured Debt (actual or contingent) of the Company
      which is not expressed to be subordinate or junior in rank to any other
      unsecured Debt of the Company.

     

    Section 9.8. 
      Additional
      Subsidiary Guarantors.
       The
      Company will cause any Subsidiary which is required by the terms of the Bank
      Credit Agreement (which requirement has not been waived by the lenders
      thereunder) to become a party to, or otherwise guarantee, Debt in respect of
      the
      Bank Credit Agreement, to enter into the Subsidiary Guaranty and deliver to
      each
      of the holders of the Notes (concurrently with the incurrence of any such
      obligation pursuant to the Bank Credit Agreement) the following
      items:

     

    (a)
      a
      joinder
      agreement in respect of the Subsidiary Guaranty;

     

    (b)
      a
      certificate signed by an authorized Responsible Officer of the Company making
      representations and warranties to the effect of those contained in
      Sections 5.4, 5.6 and 5.7, with respect to such Subsidiary and the
      Subsidiary Guaranty, as applicable; and

     

    (c)
      an
      opinion of counsel (who may be in-house counsel for the Company) addressed
      to
      each of the holders of the Notes satisfactory to the Required Holders, to the
      effect that the Subsidiary Guaranty by such Person has been duly authorized,
      executed and delivered and that the Subsidiary Guaranty constitutes the legal,
      valid and binding contract and agreement of such Person enforceable in
      accordance with its terms, except as an enforcement of such terms may be limited
      by bankruptcy, insolvency, fraudulent conveyance and similar laws affecting
      the
      enforcement of creditors’ rights generally and by general equitable
      principles.

    
      
        
        

      

      
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    Section 9.9. 
      Books
      and Records. The
      Company will, and will cause each of its Restricted Subsidiaries to, maintain
      proper books of record and account in conformity with GAAP and all applicable
      requirements of any Governmental Authority having legal or regulatory
      jurisdiction over the Company or such Restricted Subsidiary, as the case may
      be.

     

    
      	
              Section 10.

            	
              Negative
                Covenants.

            

    

     

    The
      Company covenants that so long as any of the Notes are outstanding:

     

    Section 10.1. 
      Consolidated
      Debt to Consolidated EBITDA.
      The
      Company will not permit the ratio of Consolidated Debt to Consolidated EBITDA
      (Consolidated EBITDA to be calculated as at the end of each fiscal quarter
      for
      the four consecutive fiscal quarters then ended) to exceed 3.5 to 1.00;
provided,
      however, that
      the
      ratio of Consolidated Debt to Consolidated EBITDA may exceed 3.5 to 1.00 at
      any
      time during the Transition Period if such ratio of Consolidated Debt to
      Consolidated EBITDA exceeded 3.5 to 1.00 as a direct result of the Company
      or
      any Restricted Subsidiary creating, assuming, incurring, guaranteeing or
      otherwise becoming liable in respect of Acquisition Debt so long as the ratio
      of
      Consolidated Debt to Consolidated EBITDA at all times during the Transition
      Period shall not exceed 4.0 to 1.00.

     

    Section
      10.2.  Priority
      Debt.
      The
      Company will not at any time permit the aggregate amount of all Priority Debt
      to
      exceed 20% of Consolidated Net Worth (Consolidated Net Worth to be determined
      as
      of the end of the then most recently ended fiscal quarter of the
      Company).

     

    Section 10.3. 
      Limitation
      on Liens.
      The
      Company will not, and will not permit any of its Restricted Subsidiaries to,
      directly or indirectly create, incur, assume or permit to exist (upon the
      happening of a contingency or otherwise) any Lien on or with respect to any
      property or asset (including, without limitation, any document or instrument
      in
      respect of goods or accounts receivable) of the Company or any such Restricted
      Subsidiary, whether now owned or held or hereafter acquired, or any income
      or
      profits therefrom, or assign or otherwise convey any right to receive income
      or
      profits (unless it makes, or causes to be made, effective provision whereby
      the
      Notes will be equally and ratably secured with any and all other obligations
      thereby secured, such security to be pursuant to an agreement reasonably
      satisfactory to the Required Holders and, in any such case, the Notes shall
      have
      the benefit, to the fullest extent that, and with such priority as, the holders
      of the Notes may be entitled under applicable law, of an equitable Lien on
      such
      property), except:

     

    (a)
      Liens
      for
      taxes, assessments or other governmental charges that are not yet due and
      payable or the payment of which is not at the time required by
      Section 9.4;

     

    (b)
      any
      attachment or judgment Lien, unless the judgment it secures shall not, within
      60
      days after the entry thereof, have been discharged or execution thereof stayed
      pending appeal, or shall not have been discharged within 60 days after the
      expiration of any such stay;

     

    (c)
      Liens
      incidental to the conduct of business or the ownership of properties and assets
      (including landlords’, carriers’, warehousemen’s, mechanics’, materialmen’s

    
      
        
        

      

      
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    and
      other
      similar Liens for sums not yet due and payable) and Liens to secure the
      performance of bids, tenders, leases, or trade contracts, or to secure statutory
      obligations (including obligations under workers compensation, unemployment
      insurance and other social security legislation), surety or appeal bonds or
      other Liens incurred in the ordinary course of business and not in connection
      with the borrowing of money;

     

    (d)
      leases
      or
      subleases granted to others, easements, rights-of-way, restrictions and other
      similar charges or encumbrances, in each case incidental to the ownership of
      property or assets or the ordinary conduct of the business of the Company or
      any
      of its Restricted Subsidiaries, or Liens incidental to minor survey exceptions
      and the like, provided
      that
      such Liens do not, in the aggregate, materially detract from the value of such
      property;

     

    (e)
      Liens
      securing Debt of a Restricted Subsidiary to the Company or to a Restricted
      Subsidiary;

     

    (f)
      Liens
      existing as of the date of Closing and reflected in
      Schedule 10.3;

     

    (g)
      Liens
      incurred after the date of Closing given to secure the payment of the purchase
      price incurred in connection with the acquisition, construction or improvement
      of property (other than accounts receivable or inventory) useful and intended
      to
      be used in carrying on the business of the Company or a Restricted Subsidiary,
      including Liens existing on such property at the time of acquisition or
      construction thereof or Liens incurred within 365 days of such acquisition
      or
      completion of such construction or improvement, provided
      that
      (i) the Lien shall attach solely to the property acquired, purchased,
      constructed or improved; (ii) at the time of acquisition, construction or
      improvement of such property (or, in the case of any Lien incurred within three
      hundred sixty-five (365) days of such acquisition or completion of such
      construction or improvement, at the time of the incurrence of the Debt secured
      by such Lien), the aggregate amount remaining unpaid on all Debt secured by
      Liens on such property, whether or not assumed by the Company or a Restricted
      Subsidiary, shall not exceed the lesser of (y) the cost of such
      acquisition, construction or improvement or (z) the Fair Market Value of
      such property (as determined in good faith by one or more officers of the
      Company); and (iii) at the time of such incurrence and after giving effect
      thereto, no Default or Event of Default would exist;

     

    (h)
      any
      Lien
      existing on property of a Person immediately prior to its being consolidated
      with or merged into the Company or a Restricted Subsidiary or its becoming
      a
      Restricted Subsidiary, or any Lien existing on any property acquired by the
      Company or any Restricted Subsidiary at the time such property is so acquired
      (whether or not the Debt secured thereby shall have been assumed), provided
      that
      (i) no such Lien shall have been created or assumed in contemplation of
      such consolidation or merger or such Person’s becoming a Restricted Subsidiary
      or such acquisition of property, (ii) each such Lien shall extend solely to
      the item or items of property so acquired and, if required by the terms of
      the
      instrument originally creating such Lien, other property which is an improvement
      to or is acquired for specific use in connection with such acquired property,
      

    
      
        
        

      

      
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    and
      (iii) at the time of such incurrence and after giving effect thereto, no
      Default or Event of Default would exist; 

     

    (i)
      any
      extensions, renewals or replacements of any Lien permitted by the preceding
      subparagraphs (f), (g) and (h) of this Section 10.3, provided
      that
      (i) no additional property shall be encumbered by such Liens, (ii) the
      unpaid principal amount of the Debt or other obligations secured thereby shall
      not be increased on or after the date of any extension, renewal or replacement,
      and (iii) at such time and immediately after giving effect thereto, no
      Default or Event of Default shall have occurred and be continuing; 

     

    (j)
      Liens
      on
      accounts receivable of the Company and its Restricted Subsidiaries to the extent
      such Liens arise solely by reason of a Permitted Securitization Transaction;
      provided
      that no
      such Lien shall extend to or cover any property of the Company or any Restricted
      Subsidiary other than such accounts receivable subject to such Permitted
      Securitization Transaction; and

     

    (k)
      Liens
      securing Priority Debt of the Company or any Restricted Subsidiary, provided
      that the
      aggregate principal amount of any such Priority Debt shall be permitted by
      Section 10.2.

     

    Section 10.4. 
      Sales
      of Assets. The
      Company will not, and will not permit any Restricted Subsidiary to, sell, lease
      or otherwise dispose of any substantial part (as defined below) of the assets
      of
      the Company and its Restricted Subsidiaries; provided,
      however,
      that the
      Company or any Restricted Subsidiary may sell, lease or otherwise dispose of
      assets constituting a substantial part of the assets of the Company and its
      Restricted Subsidiaries if such
      assets
      are sold in an arms length transaction and, at such time and after giving effect
      thereto, no Default or Event of Default shall have occurred and be continuing
      and an amount equal to the net proceeds received from such sale, lease or other
      disposition (but only with respect to that portion of such assets that exceeds
      the definition of “substantial part” set forth below) shall be used within 365
      days of such sale, lease or disposition, in any combination:

     

    (1)
      to
      acquire productive assets used or useful in carrying on the business of the
      Company and its Restricted Subsidiaries and having a value at least equal to
      the
      value of such assets sold, leased or otherwise disposed of; and/or

     

    (2)
      to
      prepay
      or retire Senior Debt of the Company and/or its Restricted Subsidiaries,
provided
      that the
      Company shall offer to prepay a portion of the Notes on a pro rata basis in
      accordance with Section 8.4 hereof.

     

    As
      used
      in this Section 10.4, a sale, lease or other disposition of assets shall be
      deemed to be a “substantial
      part”
      of the
      assets of the Company and its Restricted Subsidiaries if the book value of
      such
      assets, when added to the book value of all other assets sold, leased or
      otherwise disposed of by the Company and its Restricted Subsidiaries during
      the
      period of 12 consecutive months ending on the date of such sale, lease or other
      disposition, exceeds 10% of the book value of Consolidated Total Assets,
      determined as of the end of the fiscal quarter immediately 

    
      
        
        

      

      
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    preceding
      such sale, lease or other disposition;
      provided
      that
      there shall be excluded from any determination of a “substantial part” any
      (i) sale or disposition of assets in the ordinary course of business of the
      Company and its Restricted Subsidiaries, (ii) any transfer of assets from
      the Company to any Restricted Subsidiary or from any Restricted Subsidiary
      to
      the Company or a Restricted Subsidiary and (iii) any sale or transfer of
      property acquired by the Company or any Restricted Subsidiary after the date
      of
      this Agreement to any Person within 365 days following the acquisition or
      construction of such property by the Company or any Restricted Subsidiary if
      the
      Company or a Restricted Subsidiary shall concurrently with such sale or
      transfer, lease such property, as lessee. For purposes of clarification, the
      sale by the Company or any Restricted Subsidiary of accounts receivable to
      any
      Person (other than the Company or any Restricted Subsidiary) pursuant to a
      Permitted Securitization Transaction shall be included in the determination
      of a
“substantial part.”

     

    Section 10.5. 
      Merger
      and Consolidation.
      The
      Company will not, and will not permit any of its Restricted Subsidiaries to,
      consolidate with or merge with any other Person or convey, transfer or lease
      substantially all of its assets in a single transaction or series of
      transactions to any Person; provided
      that:

     

    (1)
      any
      Restricted Subsidiary of the Company may (x) consolidate with or merge
      with, or convey, transfer or lease substantially all of its assets in a single
      transaction or series of transactions to, (i) the Company or a Restricted
      Subsidiary so long as in any merger or consolidation involving the Company,
      the
      Company shall be the surviving or continuing corporation or (ii) any other
      Person so long as the survivor is the Restricted Subsidiary, or (y) convey,
      transfer or lease all of its assets in compliance with the provisions of
      Section 10.4; and 

     

    (2)
      the
      foregoing restriction does not apply to the consolidation or merger of the
      Company with, or the conveyance, transfer or lease of substantially all of
      the
      assets of the Company in a single transaction or series of transactions to,
      any
      Person so long as:

     

    (a)
      the
      successor formed by such consolidation or the survivor of such merger or the
      Person that acquires by conveyance, transfer or lease substantially all of
      the
      assets of the Company as an entirety, as the case may be (the “Successor
      Corporation”),
      shall
      be a solvent entity organized and existing under the laws of the United States
      of America, any State thereof or the District of Columbia;

     

    (b)
      if
      the
      Company is not the Successor Corporation, such Successor Corporation shall
      have
      executed and delivered to each holder of Notes its assumption of the due and
      punctual performance and observance of each covenant and condition of this
      Agreement and the Notes (pursuant to an assumption agreement substantially
      in
      the form attached hereto as Exhibit 10.5), and the Successor Corporation shall
      have caused to be delivered to each holder of Notes (A) an opinion of
      nationally recognized independent counsel, to the effect that all agreements
      or
      instruments effecting such assumption are enforceable in accordance with their
      terms and (B) an acknowledgment from each Subsidiary Guarantor that the
      Subsidiary Guaranty continues in full force and effect; and

    
      
        
        

      

      
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    (c)
      immediately
      after giving effect to such transaction no Default or Event of Default would
      exist. 

     

    Section 10.6. 
      Transactions
      with Affiliates.
      The
      Company will not and will not permit any Restricted Subsidiary to enter into
      directly or indirectly any Material transaction or Material group of related
      transactions (including without limitation the purchase, lease, sale or exchange
      of properties of any kind or the rendering of any service) with any Affiliate
      (other than the Company or a Restricted Subsidiary), except in the ordinary
      course and upon fair and reasonable terms that are not materially less favorable
      to the Company or such Restricted Subsidiary, taken as a whole, than would
      be
      obtainable in a comparable arm’s-length transaction with a Person not an
      Affiliate.

     

    Section 10.7. 
      Terrorism Sanctions Regulations.
      The
      Company will not and will not permit any Subsidiary to (a) become a Person
      described or designated in the Specially Designated Nationals and Blocked
      Persons List of the Office of Foreign Assets Control or in Section 1 of the
      Anti-Terrorism Order or (b) knowingly engage in any dealings or
      transactions with any such Person.

     

    Section 10.8. 
      Line
      of Business.
      The
      Company will not and will not permit any Restricted Subsidiary to engage in
      any
      business if, as a result, the general nature of the business in which the
      Company and its Restricted Subsidiaries, taken as a whole, would then be engaged
      would be substantially changed from the general nature of the business in which
      the Company and its Restricted Subsidiaries, taken as a whole, are engaged
      on
      the date of this Agreement.

     

    
      	
              Section 11.

            	
              Events
                of Default.

            

    

     

    An
      “Event
      of Default”
      shall
      exist if any of the following conditions or events shall occur and be
      continuing:

     

    (a)
      the
      Company defaults in the payment of any principal or Make-Whole Amount, if any,
      on any Note when the same becomes due and payable, whether at maturity or at
      a
      date fixed for prepayment or by declaration or otherwise; or

     

    (b)
      the
      Company defaults in the payment of any interest on any Note for more than five
      Business Days after the same becomes due and payable; or

     

    (c)
      the
      Company defaults in the performance of or compliance with any term contained
      in
      Section 10 or any Subsidiary Guarantor defaults in the performance of or
      compliance with any term of the Subsidiary Guaranty in each case beyond any
      period of grace or cure period provided with respect thereto; or 

     

    (d)
      the
      Company defaults in the performance of or compliance with any term contained
      herein (other than those referred to in paragraphs (a), (b) and (c) of this
      Section 11) and such default is not remedied within 30 days after the
      earlier of (i) a Responsible Officer obtaining actual knowledge of such
      default or (ii) the Company receiving written notice of such default from
      any holder of a Note (any such written 

    
      
        
        

      

      
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    notice
      to
      be identified as a “notice of default” and to refer specifically to this
      paragraph (d) of Section 11); or

     

    (e)
      any
      Subsidiary Guaranty ceases to be a legally valid, binding and enforceable
      obligation or contract of a Subsidiary Guarantor (other than upon a release
      of
      any Subsidiary Guarantor from a Subsidiary Guaranty in accordance with the
      terms
      of Section 2.2(b) hereof), or any Subsidiary Guarantor or any party by,
      through or on account of any such Person, challenges the validity, binding
      nature or enforceability of any such Subsidiary Guaranty; or

     

    (f)
      any
      representation or warranty made in writing by or on behalf of the Company or
      any
      Subsidiary Guarantor in this Agreement or any Subsidiary Guaranty or by any
      officer of the Company or any Subsidiary Guarantor in any writing furnished
      in
      connection with the transactions contemplated hereby or by any Subsidiary
      Guaranty proves to have been false or incorrect in any material respect on
      the
      date as of which made; or

     

    (g)
      (i) the
      Company or any Restricted Subsidiary is in default (as principal or as guarantor
      or other surety) in the payment of any principal of or premium or make-whole
      amount or interest (in the payment amount of at least $100,000) on any Debt
      other than the Notes that is outstanding in an aggregate principal amount of
      at
      least $15,000,000 beyond any period of grace provided with respect thereto,
      or
      (ii) the Company or any Restricted Subsidiary is in default in the
      performance of or compliance with any term of any instrument, mortgage,
      indenture or other agreement relating to any Debt other than the Notes in an
      aggregate principal amount of at least $15,000,000 or any other condition
      exists, and as a consequence of such default or condition such Debt has become,
      or has been declared, due and payable, or (iii) as a consequence of the
      occurrence or continuation of any event or condition (other than the passage
      of
      time or the right of the holder of Debt to convert such Debt into equity
      interests), the Company or any Restricted Subsidiary has become obligated to
      purchase or repay Debt other than the Notes before its regular maturity or
      before its regularly scheduled dates of payment in an aggregate outstanding
      principal amount of at least $15,000,000; provided
      that
      no
      Default or Event of Default shall exist under this Section 11(g) if any Target
      Company defaults in the payment of Due On Sale Debt on the date such Target
      Company is acquired by the Company or any Restricted Subsidiary if such Due
      On
      Sale Debt is repaid in full within 1 Business Day of the date such Target
      Company is acquired by the Company or any Restricted Subsidiary; or

     

    (h)
      the
      Company, any Material Subsidiary or any Subsidiary Guarantor (i) is
      generally not paying, or admits in writing its inability to pay, its debts
      as
      they become due, (ii) files, or consents by answer or otherwise to the
      filing against it of, a petition for relief or reorganization or arrangement
      or
      any other petition in bankruptcy, for liquidation or to take advantage of any
      bankruptcy, insolvency, reorganization, moratorium or other similar law of
      any
      jurisdiction, (iii) makes an assignment for the benefit of its creditors,
      (iv) consents to the appointment of a custodian, receiver, trustee or other
      officer with similar powers with respect to it or with respect to any
      substantial part of its property, 

    
      
        
        

      

      
        -28-

        
          

        

      

      
        
        

      

    

     

    (v) is
      adjudicated as insolvent or to be liquidated, or (vi) takes corporate
      action for the purpose of any of the foregoing; or

     

    (i)
      a
      court
      or governmental authority of competent jurisdiction enters an order appointing,
      without consent by the Company, any of its Material Subsidiaries or any
      Subsidiary Guarantor, a custodian, receiver, trustee or other officer with
      similar powers with respect to it or with respect to any substantial part of
      its
      property, or constituting an order for relief or approving a petition for relief
      or reorganization or any other petition in bankruptcy or for liquidation or
      to
      take advantage of any bankruptcy or insolvency law of any jurisdiction, or
      ordering the dissolution, winding-up or liquidation of the Company, any of
      its
      Material Subsidiaries or any Subsidiary Guarantor, or any such petition shall
      be
      filed against the Company, any of its Material Subsidiaries or any Subsidiary
      Guarantor and such petition shall not be dismissed within 60 days;
      or

     

    (j)
      a
      final
      judgment or judgments at any one time outstanding for the payment of money
      aggregating in excess of $15,000,000 are rendered against one or more of the
      Company, its Restricted Subsidiaries or any Subsidiary Guarantor and which
      judgments are not, within 60 days after entry thereof, bonded, discharged or
      stayed pending appeal, or are not discharged within 60 days after the expiration
      of such stay; or

     

    (k)
      if
      (i) any Plan shall fail to satisfy the minimum funding standards of ERISA
      or the Code for any plan year or part thereof or a waiver of such standards
      or
      extension of any amortization period is sought or granted under Section 412
      of the Code, (ii) a notice of intent to terminate any Plan in an
      involuntary or distress termination shall have been filed with the PBGC or
      the
      PBGC shall have instituted proceedings under Section 4042 of ERISA to
      terminate or appoint a trustee to administer any Plan or the PBGC shall have
      notified the Company or any ERISA Affiliate that a Plan may become a subject
      of
      any such proceedings, (iii) the aggregate “amount of unfunded benefit
      liabilities” (within the meaning of Section 4001(a)(18) of ERISA) under all
      Plans, determined in accordance with Title IV of ERISA, shall exceed
      $15,000,000, (iv) the Company or in the case of any ERISA controlled group
      liability, any ERISA Affiliate, shall have incurred any liability pursuant
      to
      Title I or IV of ERISA or the penalty or excise tax provisions of the Code
      relating to employee benefit plans, (v) the Company or any ERISA Affiliate
      withdraws from any Multiemployer Plan, or (vi) the Company or any
      Subsidiary establishes or amends any employee welfare benefit plan that provides
      post-employment welfare benefits in a manner that could increase the liability
      of the Company or any Subsidiary thereunder; and any such event or events
      described in clauses (i) through (vi) above, either individually or together
      with any other such event or events, could reasonably be expected to have a
      Material Adverse Effect.

     

    As
      used
      in Section 11(k), the terms “employee
      benefit plan”
      and
“employee
      welfare benefit plan”
      shall
      have the respective meanings assigned to such terms in Section 3 of
      ERISA.

    
      
        
        

      

      
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              Section 12.

            	
              Remedies
                on Default, Etc.

            

    

     

    Section 12.1. 
      Acceleration.
      (a) If an Event of Default with respect to the Company described in
      paragraph (h) or (i) of Section 11 (other than an Event of Default
      described in clause (i) of paragraph (h) or described in clause (vi) of
      paragraph (h) by virtue of the fact that such clause encompasses clause (i)
      of
      paragraph (h)) has occurred, all the Notes then outstanding shall automatically
      become immediately due and payable.

     

    (b)
      If
      any
      other Event of Default has occurred and is continuing, any holder or holders
      of
      more than 50% in aggregate principal amount of the Notes at the time outstanding
      may at any time at its or their option, by notice or notices to the Company,
      declare all the Notes then outstanding to be immediately due and
      payable.

     

    (c)
      If
      any
      Event of Default described in paragraph (a) or (b) of Section 11 has
      occurred and is continuing with respect to any Notes, any holder or holders
      of
      Notes at the time outstanding affected by such Event of Default may at any
      time,
      at its or their option, by notice or notices to the Company, declare all the
      Notes held by such holder or holders to be immediately due and
      payable.

     

    Upon
      any
      Note’s becoming due and payable under this Section 12.1, whether
      automatically or by declaration, such Note will forthwith mature and the entire
      unpaid principal amount of such Note, plus (i) all accrued and unpaid
      interest thereon (including, but not limited to, interest accrued thereon at
      the
      Default Rate) and (ii) the Make-Whole Amount determined in respect of such
      principal amount (to the full extent permitted by applicable law), shall all
      be
      immediately due and payable, in each and every case without presentment, demand,
      protest or further notice, all of which are hereby waived. The Company
      acknowledges, and the parties hereto agree, that each holder of a Note has
      the
      right to maintain its investment in the Notes free from repayment by the Company
      (except as herein specifically provided for) and that the provision for payment
      of a Make-Whole Amount by the Company in the event that the Notes are prepaid
      or
      are accelerated as a result of an Event of Default, is intended to provide
      compensation for the deprivation of such right under such
      circumstances.

     

    Section 12.2. 
      Other
      Remedies.
      If any
      Default or Event of Default has occurred and is continuing, and irrespective
      of
      whether any Notes have become or have been declared immediately due and payable
      under Section 12.1, the holder of any Note at the time outstanding may
      proceed to protect and enforce the rights of such holder by an action at law,
      suit in equity or other appropriate proceeding, whether for the specific
      performance of any agreement contained herein or in any Note, or for an
      injunction against a violation of any of the terms hereof or thereof, or in
      aid
      of the exercise of any power granted hereby or thereby or by law or
      otherwise.

     

    Section 12.3. 
      Rescission.
      At any
      time after the Notes have been declared due and payable pursuant to
      clause (b) or (c) of Section 12.1, the holders of more than 50% in
      aggregate principal amount of the Notes then outstanding, by written notice
      to
      the Company, may rescind and annul any such declaration and its consequences
      if
      (a) the Company has paid all overdue interest on the Notes, all principal
      of and Make-Whole Amount on any Notes that are due and payable and are unpaid
      other than by reason of such declaration, and all interest on such overdue
      principal and 

    
      
        
        

      

      
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    Make-Whole
      Amount and (to the extent permitted by applicable law) any overdue interest
      in
      respect of the Notes, at the Default Rate, (b) neither the Company nor any
      other Person shall have paid any amounts which have become due solely by reason
      of such declaration, (c) all Events of Default and Defaults, other than
      non-payment of amounts that have become due solely by reason of such
      declaration, have been cured or have been waived pursuant to Section 17,
      and (d) no judgment or decree has been entered for the payment of any
      monies due pursuant hereto or to any Notes. No rescission and annulment under
      this Section 12.3 will extend to or affect any subsequent Event of Default
      or Default or impair any right consequent thereon.

     

    Section 12.4. 
      No
      Waivers or Election of Remedies, Expenses, Etc.
      No
      course of dealing and no delay on the part of any holder of any Note in
      exercising any right, power or remedy shall operate as a waiver thereof or
      otherwise prejudice such holder’s rights, powers or remedies. No right, power or
      remedy conferred by this Agreement or by any Note upon any holder thereof shall
      be exclusive of any other right, power or remedy referred to herein or therein
      or now or hereafter available at law, in equity, by statute or otherwise.
      Without limiting the obligations of the Company under Section 15, the
      Company will pay to the holder of each Note on demand such further amount as
      shall be sufficient to cover all costs and expenses of such holder incurred
      in
      any enforcement or collection under this Section 12, including, without
      limitation, reasonable attorneys’ fees, expenses and disbursements.

     

    Section 13.         
      Registration;
      Exchange; Substitution of Notes.

     

    Section 13.1. 
      Registration
      of Notes.
      The
      Company shall keep at its principal executive office a register for the
      registration and registration of transfers of Notes. The name and address of
      each holder of one or more Notes, each transfer thereof and the name and address
      of each transferee of one or more Notes shall be registered in such register.
      Prior to due presentment for registration of transfer, the Person in whose
      name
      any Note shall be registered shall be deemed and treated as the owner and holder
      thereof for all purposes hereof, and the Company shall not be affected by any
      notice or knowledge to the contrary. The Company shall give to any holder of
      a
      Note that is an Institutional Investor promptly upon request therefor, a
      complete and correct copy of the names and addresses of all registered holders
      of Notes.

     

    Section 13.2. 
      Transfer
      and Exchange of Notes.
      Subject
      to the limitation in Section 13.3, upon surrender of any Note to the
      Company at the address and to the attention of the designated officer (all
      as
      specified in Section 18(iii)), for registration of transfer or exchange
      (and in the case of a surrender for registration of transfer accompanied by
      a
      written instrument of transfer duly executed by the registered holder of such
      Note or such holder’s attorney duly authorized in writing and accompanied by the
      relevant name, address and other information for notices of each transferee
      of
      such Note or part thereof), within ten Business Days thereafter, the Company
      shall execute and deliver, at the Company’s expense (except as provided below),
      one or more new Notes (as requested by the holder thereof) in exchange therefor,
      in an aggregate principal amount equal to the unpaid principal amount of the
      surrendered Note. Each such new Note shall be payable to such Person as such
      holder may request and shall be substantially in the form of the Note originally
      issued hereunder. Each such new Note shall be dated and bear interest from
      the
      date to which interest shall have been paid on the surrendered Note or dated
      the
      date of the surrendered Note if no interest shall have been paid thereon. The
      Company may require 

    
      
        
        

      

      
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    payment
      of a sum sufficient to cover any stamp tax or governmental charge imposed in
      respect of any such transfer of Notes. Notes shall not be transferred in
      denominations of less than $500,000, provided
      that if
      necessary to enable the registration of transfer by a holder of its entire
      holding of Notes, one Note may be in a denomination of less than $500,000.
      Any
      transferee, by its acceptance of a Note registered in its name (or the name
      of
      its nominee), shall be deemed to have (i) agreed to the confidentiality
      provisions set forth in Section 20 hereof, (ii) made the representation set
      forth in Sections 6.2 and 6.3, provided,
      that in
      lieu thereof such holder may (in reliance upon information provided by the
      Company, which shall not be unreasonably withheld) make a representation to
      the
      effect that the purchase by any holder of any Note will not constitute a
      non-exempt prohibited transaction under section 406(a) of ERISA and (iii)
      submitted to jurisdiction and service of process as provided in
      Section 22.8 hereof.

     

    The
      Notes
      have not been registered under the Securities Act or under the securities laws
      of any state and the holders agree that the Notes may not be transferred or
      resold unless registered under the Securities Act and all applicable state
      securities laws or unless an exemption from the requirement for such
      registration is available. 

     

    Section
      13.3.  Transfer
      Restrictions.
      Each
      Purchaser agrees that so long as no Default or Event of Default exists, without
      the prior written consent of the Company, such Purchaser (and each transferee
      by
      its acceptance of a Note shall be deemed to have agreed that it) will not
      knowingly transfer or assign the Notes to any Person which is, or is known
      by
      such Purchaser to be controlled by, a Person who has a line of business that
      involves consumer packaged food products or personal care products with sales
      equal to or greater than $25,000,000 during the 12 months prior to such transfer
      or assignment.

     

    Section 13.4. 
      Replacement
      of Notes.
      Upon
      receipt by the Company at the address and to the attention of the designated
      officer (all as specified in Section 18(iii)) of evidence reasonably
      satisfactory to it of the ownership of and the loss, theft, destruction or
      mutilation of any Note (which evidence shall be, in the case of an Institutional
      Investor, notice from such Institutional Investor of such ownership and such
      loss, theft, destruction or mutilation), and

     

    (a)
      in
      the
      case of loss, theft or destruction, of indemnity reasonably satisfactory to
      it
      (provided
      that if
      the holder of such Note is, or is a nominee for, an original Purchaser or
      another holder of a Note with a minimum net worth of at least $50,000,000 or
      a
      Qualified Institutional Buyer, such Person’s own unsecured agreement of
      indemnity shall be deemed to be satisfactory), or

     

    (b)
      in
      the
      case of mutilation, upon surrender and cancellation thereof,

     

    the
      Company at its own expense shall execute and deliver not more than five Business
      Days following satisfaction of such conditions, in lieu thereof, a new Note,
      dated and bearing interest from the date to which interest shall have been
      paid
      on such lost, stolen, destroyed or mutilated Note or dated the date of such
      lost, stolen, destroyed or mutilated Note if no interest shall have been paid
      thereon.

    
      
        
        

      

      
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              Section 14.

            	
              Payments
                on Notes.

            

    

     

    Section 14.1. 
      Place
      of Payment.
      Subject
      to Section 14.2, payments of principal, Make-Whole Amount and interest
      becoming due and payable on the Notes shall be made in New York,
      New York at the principal office of Bank of America, N.A. in such
      jurisdiction. The Company may at any time, by notice to each holder of a Note,
      change the place of payment of the Notes so long as such place of payment shall
      be either the principal office of the Company in such jurisdiction or the
      principal office of a bank or trust company in such jurisdiction.

     

    Section 14.2. 
      Home
      Office Payment.
      So long
      as any Purchaser or such Purchaser’s nominee shall be the holder of any Note,
      and notwithstanding anything contained in Section 14.1 or in such Note to
      the contrary, the Company will pay all sums becoming due on such Note for
      principal, Make-Whole Amount and interest by the method and at the address
      specified for such purpose for such Purchaser on Schedule A hereto, or by
      such other method or at such other address as such Purchaser shall have from
      time to time specified to the Company in writing for such purpose, without
      the
      presentation or surrender of such Note or the making of any notation thereon,
      except that upon written request of the Company made concurrently with or
      reasonably promptly after payment or prepayment in full of any Note, such
      Purchaser shall surrender such Note for cancellation, reasonably promptly after
      any such request, to the Company at its principal executive office or at the
      place of payment most recently designated by the Company pursuant to
      Section 14.1. Prior to any sale or other disposition of any Note held by
      any Purchaser or such Purchaser’s nominee, such Person will, at its election,
      either endorse thereon the amount of principal paid thereon and the last date
      to
      which interest has been paid thereon or surrender such Note to the Company
      in
      exchange for a new Note or Notes pursuant to Section 13.2. The Company will
      afford the benefits of this Section 14.2 to any Institutional Investor that
      is the direct or indirect transferee of any Note.

     

    
      	
              Section 15.

            	
              Expenses,
                Etc.

            

    

     

    Section 15.1. 
      Transaction
      Expenses.
      Whether
      or not the transactions contemplated hereby are consummated, the Company will
      pay all reasonable costs and expenses (including reasonable attorneys’ fees of a
      special counsel for the Purchasers and, if reasonably required by the Required
      Holders, local or other counsel) incurred by each Purchaser and each other
      holder of a Note in connection with such transactions and in connection with
      any
      amendments, waivers or consents under or in respect of this Agreement or the
      Notes (whether or not such amendment, waiver or consent becomes effective),
      including, without limitation the reasonable: (a) costs and expenses
      incurred in enforcing or defending (or determining whether or how to enforce
      or
      defend) any rights under this Agreement or the Notes or in responding to any
      subpoena or other legal process or informal investigative demand issued in
      connection with this Agreement or the Notes, or by reason of being a holder
      of
      any Note, and (b) costs and expenses, including financial advisors’ fees,
      incurred in connection with the insolvency or bankruptcy of the Company or
      any
      Subsidiary or in connection with any work-out or restructuring of the
      transactions contemplated hereby and by the Notes. The Company will pay, and
      will save each Purchaser and each other holder of a Note harmless from, all
      claims in respect of any fees, costs or expenses if any, of brokers and finders
      (other than those, if any, retained by a Purchaser or other holder in connection
      with its purchase of the Notes).

    
      
        
        

      

      
        -33-

        
          

        

      

      
        
        

      

    

     

    

     

    Section 15.2. 
      Survival.
      The
      obligations of the Company under this Section 15 will survive the payment
      or transfer of any Note, the enforcement, amendment or waiver of any provision
      of this Agreement or the Notes, and the termination of this
      Agreement.

     

    
      	
              Section 16.

            	
              Survival
                of Representations and Warranties; Entire Agreement.
                

            

    

     

    All
      representations and warranties contained herein shall survive the execution
      and
      delivery of this Agreement and the Notes, the purchase or transfer by any
      Purchaser of any such Note or portion thereof or interest therein and the
      payment of any Note may be relied upon by any subsequent holder of any such
      Note, regardless of any investigation made at any time by or on behalf of any
      Purchaser or any other holder of any such Note. All statements contained in
      any
      certificate or other instrument delivered by or on behalf of the Company
      pursuant to this Agreement shall be deemed representations and warranties of
      the
      Company under this Agreement. Subject to the preceding sentence, this Agreement
      and the Notes embody the entire agreement and understanding between the
      Purchasers and the Company and supersede all prior agreements and understandings
      relating to the subject matter hereof.

     

    
      	
              Section 17.

            	
              Amendment
                and Waiver.

            

    

     

    Section 17.1. 
      Requirements.
      (a)
      This Agreement and the Notes may be amended, and the observance of any term
      hereof or of the Notes may be waived (either retroactively or prospectively),
      with (and only with) the written consent of the Company and the Required
      Holders, except that (i) no amendment or waiver of any of the provisions of
      Section 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term (as it is used
      in any such Section), will be effective as to any holder of Notes unless
      consented to by such holder of Notes in writing, and (ii) no such amendment
      or waiver may, without the written consent of all of the holders of Notes at
      the
      time outstanding affected thereby, (A) subject to the provisions of
      Section 12 relating to acceleration or rescission, change the amount or
      time of any prepayment or payment of principal of, or reduce the rate or change
      the time of payment or method of computation of interest (if such change results
      in a decrease in the interest rate) or of the Make-Whole Amount on, the Notes,
      (B) change the percentage of the principal amount of the Notes the holders
      of which are required to consent to any such amendment or waiver, or
      (C) amend any of Section 8, 11(a), 11(b), 12, 17 or 20. 

     

    Section 17.2. 
      Solicitation
      of Holders of Notes.

     

    (a)
      Solicitation.
      The
      Company will provide each holder of the Notes (irrespective of the amount of
      Notes then owned by it) with sufficient information to enable such holder to
      make an informed and considered decision with respect to any proposed amendment,
      waiver or consent in respect of any of the provisions hereof or of the Notes.
      The Company will deliver executed or true and correct copies of each amendment,
      waiver or consent effected pursuant to the provisions of this Section 17 to
      each holder of outstanding Notes promptly following the date on which it is
      executed and delivered by, or receives the consent or approval of, the requisite
      holders of Notes.

     

    (b)
      Payment.
      The
      Company will not directly or indirectly pay or cause to be paid any
      remuneration, whether by way of supplemental or additional interest, fee or
      otherwise, or grant any security or provide other credit support, to any holder
      of Notes as consideration for or as an 

    
      
        
        

      

      
        -34-

        
          

        

      

      
        
        

      

    

     

    inducement
      to the entering into by any holder of Notes of any waiver or amendment of any
      of
      the terms and provisions hereof unless such remuneration is concurrently paid,
      or security is concurrently granted or other credit support is concurrently
      provided, on the same terms, ratably to each holder of Notes then outstanding
      even if such holder did not consent to such waiver or amendment.

     

    (c)
      Consent
      in Contemplation of Transfer.
      Any
      consent made pursuant to this Section 17 by a holder of Notes that has
      transferred or has agreed to transfer its Notes to the Company, any Subsidiary
      or any Affiliate of the Company and has provided or has agreed to provide such
      written consent as a condition to such transfer shall be void and of no force
      or
      effect except solely as to such holder, and any amendments effected or waivers
      granted or to be effected or granted that would not have been or would not
      be so
      effected or granted but for such consent (and the consents of all other holders
      of Notes that were acquired under the same or similar conditions) shall be
      void
      and of no force or effect except solely as to such holder.

     

    Section 17.3. 
      Binding
      Effect, Etc.
      Any
      amendment or waiver consented to as provided in this Section 17 applies
      equally to all holders of Notes and is binding upon them and upon each future
      holder of any Note and upon the Company without regard to whether such Note
      has
      been marked to indicate such amendment or waiver. No such amendment or waiver
      will extend to or affect any obligation, covenant, agreement, Default or Event
      of Default not expressly amended or waived or impair any right consequent
      thereon. No course of dealing between the Company and the holder of any Note
      nor
      any delay in exercising any rights hereunder or under any Note shall operate
      as
      a waiver of any rights of any holder of such Note. As used herein, the term
      “this Agreement” and references thereto shall mean this Agreement as it may from
      time to time be amended or supplemented.

     

    Section 17.4. 
      Notes
      Held by Company, Etc.
      Solely
      for the purpose of determining whether the holders of the requisite percentage
      of the aggregate principal amount of Notes then outstanding approved or
      consented to any amendment, waiver or consent to be given under this Agreement
      or the Notes, or have directed the taking of any action provided herein or
      in
      the Notes to be taken upon the direction of the holders of a specified
      percentage of the aggregate principal amount of Notes then outstanding, Notes
      directly or indirectly owned by the Company or any of its Affiliates shall
      be
      deemed not to be outstanding.

     

    
      	
              Section 18.

            	
              Notices.

            

    

     

    All
      notices and communications provided for hereunder shall be in writing and shall
      be effective (a) when delivered, (b) when transmitted by telecopy (or
      other facsimile device) if the sender on the same day sends a confirming copy
      of
      such notice by a recognized overnight delivery service (charges prepaid),
      (c) the day following the day on which the same has been delivered to a
      recognized overnight delivery service (with charges prepaid) or (d) the third
      Business Day following the day on which the same is sent by certified mail
      or
      registered mail (with charges prepaid). Any such notice must be
      sent:

     

    (i)
      if
      to a
      Purchaser or such Purchaser’s nominee, to such Purchaser or such Purchaser’s
      nominee at the address specified for such communications in Schedule A to

    
      
        
        

      

      
        -35-

        
          

        

      

      
        
        

      

    

     

    this
      Agreement, or at such other address as such Purchaser or such Purchaser’s
      nominee shall have specified to the Company in writing pursuant to this
      Section 18;

     

    (ii)
      if
      to any
      other holder of any Note, to such holder at such address as such other holder
      shall have specified to the Company in writing pursuant to this Section 18,
      or

     

    (iii)
      if
      to the
      Company, to the Company at its address set forth at the beginning hereof to
      the
      attention of the Chief Financial Officer, with a copy to the General Counsel
      and
      a copy (which shall not constitute notice) to Cahill Gordon & Reindel LLP,
      80 Pine St., New York, New York 10005, Attn: Geoffrey E. Liebmann (facsimile:
      212-269-5420), or at such other address as the Company shall have specified
      to
      the holder of each Note in writing.

     

    
      	
              Section 19.

            	
              Reproduction
                of Documents.

            

    

     

    This
      Agreement and all documents relating thereto, including, without limitation,
      (a) consents, waivers and modifications that may hereafter be executed,
      (b) documents received by any Purchaser at the Closing (except the Notes
      themselves), and (c) financial statements, certificates and other
      information previously or hereafter furnished to any Purchaser, may be
      reproduced by such Purchaser by any photographic, photostatic, electronic,
      digital, or other similar process and such Purchaser may destroy any original
      document so reproduced. The Company agrees and stipulates that, to the extent
      permitted by applicable law, any such reproduction shall be admissible in
      evidence as the original itself in any judicial or administrative proceeding
      (whether or not the original is in existence and whether or not such
      reproduction was made by such Purchaser in the regular course of business)
      and
      any enlargement, facsimile or further reproduction of such reproduction shall
      likewise be admissible in evidence. This Section 19 shall not prohibit the
      Company or any other holder of Notes from contesting any such reproduction
      to
      the same extent that it could contest the original, or from introducing evidence
      to demonstrate the inaccuracy of any such reproduction.

     

    
      	
              Section 20.

            	
              Confidential
                Information.

            

    

     

    For
      the
      purposes of this Section 20, “Confidential
      Information”
means
      information delivered to any Purchaser by or on behalf of the Company or any
      Subsidiary in connection with the transactions contemplated by or otherwise
      pursuant to this Agreement that is proprietary in nature and that was clearly
      marked or labeled or otherwise adequately identified when received by such
      Purchaser as being confidential information of the Company or such Subsidiary,
      provided
      that
      such term does not include information that (a) was publicly known or
      otherwise known to such Purchaser prior to the time of such disclosure,
      (b) subsequently becomes publicly known through no act or omission by such
      Purchaser or any Person acting on such Purchaser’s behalf, (c) otherwise
      becomes known to such Purchaser other than through disclosure by the Company
      or
      any Subsidiary or (d) constitutes financial statements delivered to such
      Purchaser under Section 7.1 that are otherwise publicly available. Each
      Purchaser will maintain the confidentiality of such Confidential Information
      in
      accordance with procedures adopted by such Purchaser in good faith to protect
      confidential information of third parties delivered to such 

    
      
        
        

      

      
        -36-

        
          

        

      

      
        
        

      

    

     

    Purchaser,
      provided
      that
      such Purchaser may deliver or disclose Confidential Information to (i) such
      Purchaser’s directors, trustees, officers, employees, agents, attorneys and
      affiliates (to the extent such disclosure reasonably relates to the
      administration of the investment represented by such Purchaser’s Notes), such
      Purchaser’s financial advisors and other professional advisors, in each case,
      who agree to hold confidential the Confidential Information substantially in
      accordance with the terms of this Section 20, (ii) any other holder of
      any Note, (iii) any Institutional Investor to which such Purchaser sells or
      offers to sell such Note or any part thereof or any participation therein (if
      such Person has agreed in writing prior to its receipt of such Confidential
      Information to be bound by the provisions of this Section 20),
      (iv) any federal or state regulatory authority having jurisdiction over
      such Purchaser, (v) the National Association of Insurance Commissioners or
      any similar organization, or any nationally recognized rating agency that
      requires access to information about such Purchaser’s investment portfolio, or
      (vi) any other Person to which such delivery or disclosure may be necessary
      or appropriate (w) to effect compliance with any law, rule, regulation or
      order applicable to such Purchaser, (x) in response to any subpoena or
      other legal process, (y) in connection with any litigation to which such
      Purchaser is a party or (z) if an Event of Default has occurred and is
      continuing, to the extent such Purchaser may reasonably determine such delivery
      and disclosure to be necessary or appropriate in the enforcement or for the
      protection of the rights and remedies under such Purchaser’s Notes, the
      Subsidiary Guaranty and this Agreement. Each holder of a Note, by its acceptance
      of a Note, will be deemed to have agreed to be bound by and to be entitled
      to
      the benefits of this Section 20 as though it were a party to this
      Agreement. On reasonable request by the Company in connection with the delivery
      to any holder of a Note of information required to be delivered to such holder
      under this Agreement or requested by such holder (other than a holder that
      is a
      party to this Agreement or its nominee), such holder will enter into an
      agreement with the Company embodying the provisions of this
      Section 20.

     

    
      	
              Section 21.

            	
              Substitution
                of Purchaser.

            

    

     

    Each
      Purchaser shall have the right to substitute any one of its Affiliates as the
      purchaser of the Notes that it has agreed to purchase hereunder, by written
      notice to the Company, which notice shall be signed by both such Purchaser
      and
      such Affiliate, shall contain such Affiliate’s agreement to be bound by this
      Agreement and shall contain a confirmation by such Affiliate of the accuracy
      with respect to it of the representations set forth in Section 6. Upon receipt
      of such notice, any reference to such Purchaser in this Agreement (other than
      in
      this Section 21), shall be deemed to refer to such Affiliate in lieu of such
      original Purchaser. In the event that such Affiliate is so substituted as a
      Purchaser hereunder and such Affiliate thereafter transfers to such original
      Purchaser all of the Notes then held by such Affiliate, upon receipt by the
      Company of notice of such transfer, any reference to such Affiliate as a
“Purchaser” in this Agreement (other than in this Section 21), shall no longer
      be deemed to refer to such Affiliate, but shall refer to such original
      Purchaser, and such original Purchaser shall again have all the rights of an
      original holder of the Notes under this Agreement.

     

    
      	
              Section 22.

            	
              Miscellaneous.

            

    

     

    Section 22.1. 
      Successors
      and Assigns.
      All
      covenants and other agreements contained in this Agreement by or on behalf
      of
      any of the parties hereto bind and inure to the benefit of their

    
      
        
        

      

      
        -37-

        
          

        

      

      
        
        

      

    

     

    respective
      successors and assigns (including, without limitation, any subsequent holder
      of
      a Note) whether so expressed or not.

     

    Section 22.2. 
      Payments
      Due on Non-Business Days.
      Anything in this Agreement or the Notes to the contrary notwithstanding (but
      without limiting the requirement in Section 8.5 that the notice of any
      optional prepayment specify a Business Day as the date fixed for such
      prepayment), any payment of principal of or Make-Whole Amount or interest on
      any
      Note that is due on a date other than a Business Day shall be made on the next
      succeeding Business Day without including the additional days elapsed in the
      computation of the interest payable on such next succeeding Business Day;
      provided that if the maturity date of any Note is a date other than a Business
      Day, the payment otherwise due on such maturity date shall be made on the next
      succeeding Business Day and shall include the additional days elapsed in the
      computation of interest payable on such next succeeding Business
      Day.

     

    Section 22.3. 
      Accounting
      Terms.
      All
      accounting terms used herein which are not expressly defined in this Agreement
      have the meanings respectively given to them in accordance with GAAP. Except
      as
      otherwise specifically provided herein, (i) all computations made pursuant
      to this Agreement shall be made in accordance with GAAP, and (ii) all
      financial statements shall be prepared in accordance with GAAP.

     

    Section 22.4. 
      Severability.
      Any
      provision of this Agreement that is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining
      provisions hereof, and any such prohibition or unenforceability in any
      jurisdiction shall (to the full extent permitted by law) not invalidate or
      render unenforceable such provision in any other jurisdiction.

     

    Section 22.5. 
      Construction.
      Each
      covenant contained herein shall be construed (absent express provision to the
      contrary) as being independent of each other covenant contained herein, so
      that
      compliance with any one covenant shall not (absent such an express contrary
      provision) be deemed to excuse compliance with any other covenant. Where any
      provision herein refers to action to be taken by any Person, or which such
      Person is prohibited from taking, such provision shall be applicable whether
      such action is taken directly or indirectly by such Person.

     

    For
      the
      avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall
      be deemed to be a part hereof.

     

    Section 22.6. 
      Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      an original but all of which together shall constitute one instrument. Each
      counterpart may consist of a number of copies hereof, each signed by less than
      all, but together signed by all, of the parties hereto.

     

    Section 22.7. 
      Governing
      Law.
      This
      Agreement shall be construed and enforced in accordance with, and the rights
      of
      the parties shall be governed by, the law of the State of New York
      excluding choice-of-law principles of the law of such State that would permit
      the application of the laws of a jurisdiction other than such
      State.

    
      
        
        

      

      
        -38-

        
          

        

      

      
        
        

      

    

     

    

     

    Section 22.8. 
      Jurisdiction
      and Process; Waiver of Jury Trial.
       (a) The
      Company and each Purchaser irrevocably submits to the non-exclusive jurisdiction
      of any New York State or federal court sitting in the Borough of Manhattan,
      The
      City of New York, over any suit, action or proceeding arising out of or relating
      to this Agreement or the Notes. To the fullest extent permitted by applicable
      law, the Company irrevocably waives and agrees not to assert, by way of motion,
      as a defense or otherwise, any claim that it is not subject to the jurisdiction
      of any such court, any objection that it may now or hereafter have to the laying
      of the venue of any such suit, action or proceeding brought in any such court
      and any claim that any such suit, action or proceeding brought in any such
      court
      has been brought in an inconvenient forum.

     

    (b)
      The
      Company and each Purchaser consent to process being served on it by the Company
      or any Purchaser in any suit, action or proceeding of the nature referred to
      in
      Section 22.8(a) by mailing a copy thereof by registered or certified mail
      (or any substantially similar form of mail), postage prepaid, return receipt
      requested, to it at its address specified in Section 18 or at such other
      address of which such Person shall then have been notified pursuant to said
      Section. The Company and each Purchaser agree that such service upon receipt
      (i) shall be deemed in every respect effective service of process upon it
      in any such suit, action or proceeding and (ii) shall, to the fullest
      extent permitted by applicable law, be taken and held to be valid personal
      service upon and personal delivery to it. Notices hereunder shall be
      conclusively presumed received as evidenced by a delivery receipt furnished
      by
      the United States Postal Service or any reputable commercial delivery
      service.

     

    (c)
      Nothing
      in this Section 22.8 shall affect the right of the Company or any holder of
      a Note to serve process in any manner permitted by law, or limit any right
      that
      the holders of any of the Notes may have to bring proceedings against the
      Company in the courts of any appropriate jurisdiction or to enforce in any
      lawful manner a judgment obtained in one jurisdiction in any other
      jurisdiction.

     

    (d)
      The
      parties hereto hereby waive trial by jury in any action brought on or with
      respect to this Agreement, the Notes or any other document executed in
      connection herewith or therewith.

     

    (e)
      Each
      holder of a Note, by its acceptance of a Note, will be deemed to be bound by
      and
      to be entitled to the benefits of this Section 22.8 as though it were a party
      to
      this Agreement.

     

    *
      * * *
      *

    
      
        
        

      

      
        -39-

        
          

        

      

      
        
        

      

    

     

    The
      execution hereof by the Purchasers shall constitute a contract among the Company
      and the Purchasers for the uses and purposes hereinabove set forth. This
      Agreement may be executed in any number of counterparts, each executed
      counterpart constituting an original but all together only one
      agreement.

     

    

    Very
      truly yours,

    

    The
      Hain
      Celestial Group, Inc.

    

    

    By 
      /s/
      Ira J. Lamel

          
      Name:  Ira
      J.
      Lamel

          
      Title:    Executive
      Vice President and Chief

      
                      
Financial Officer

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Accepted
      as of the first date written above.

    

    ING
      Life
      Insurance and Annuity Company

    ING
      USA
      Annuity and Life Insurance Company

    ReliaStar
      Life Insurance Company

    ReliaStar
      Life Insurance Company of New York

    

    By: ING
      Investment Management LLC, as Agent

    

    

    

    By  
      /s/
      James V. Wittich

    Name:
       James V. Wittich

    Title:   
      Senior Vice President

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Accepted
      as of the first date written above.

    

    The
      Guardian Life Insurance Company of America

    

    

    

    By 
      /s/
      Brian Keating

          
      Name:  Brian Keating

           Title:   
      Director, Fixed Income

    

    

    Berkshire
      Life Insurance Company of America

    

    

    

    By 
      /s/
      Brian Keating

          
      Name:  Brian Keating

           Title:   
      Director, Fixed Income

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Accepted
      as of the first date written above.

    

    United
      of
      Omaha Life Insurance Company

    

    

    

    By
       /s/
      Curtis R. Caldwell

          
      Name:  Curtis R. Caldwell

          
      Title:    Vice President

    

    

    Companion
      Life Insurance Company

    

    

    

    By 
      /s/
      Curtis R. Caldwell

          
      Name: Curtis R. Caldwell

          
      Title:   Authorized Signer

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Accepted
      as of the first date written above.

    

    Modern
      Woodmen of America

    

    

    

    By
       /s/
      W.
      Kenny Massey

          
      Name:  W. Kenny Massey

           Title:   
      President & CEO

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Accepted
      as of the first date written above.

    

    Life
      Insurance Company of the Southwest

    

    

    

    By 
      /s/
      J.
      Michael Mancini, Jr.

          
      Name: J. Michael Mancini, Jr.

          
      Title:   Vice President

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Accepted
      as of the first date written above.

    

    The
      Travelers Indemnity Company

    

    

    

    By
       /s/
      David D. Rowland

          
      Name: David D. Rowland

          
      Title:   Senior Vice President

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Accepted
      as of the first date written above.

    

    American
      International Life Assurance Company of New York

    First
      SunAmerica Life Insurance Company

    Merit
      Life Insurance Co.

    The
      United States Life Insurance Company in the City of New York

    The
      Variable Annuity Life Insurance Company

    

    By: AIG
      Global Investment Corp., investment adviser

    

    

    

    By 
      /s/
      Peter DeFazio

          
Name:
      Peter DeFazio

          
Title:  
      Vice President

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Accepted
      as of the first date written above.

    

    AgFirst
      Farm Credit Bank

    

    

    

    By
       /s/
      R.
      Scott Higgins

          
      Name:  R.
      Scott
      Higgins

          
      Title:    Vice
      President

                       
      Sentinel Asset Management

    

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Defined
      Terms

     

    As
      used
      herein, the following terms have the respective meanings set forth below or
      set
      forth in the Section hereof following such term:

     

    “Acquisition
      Debt”
      means
      any Debt incurred in connection with the acquisition by the Company or any
      Restricted Subsidiary of any Person or line of business, provided,
      that,
      at such time and after giving effect to such acquisition, the Company and its
      Restricted Subsidiaries are in compliance with Section 10.8.

     

    “Affiliate”
      means,
      at any time, and with respect to any Person, (a) any other Person that at
      such time directly or indirectly through one or more intermediaries Controls,
      or
      is Controlled by, or is under common Control with, such first Person, and
      (b) any Person beneficially owning or holding, directly or indirectly, 10%
      or more of any class of voting or equity interests of the Company or any
      Subsidiary or any Person of which the Company and its Subsidiaries beneficially
      own or hold, in the aggregate, directly or indirectly, 10% or more of any class
      of voting or equity interests. As used in this definition, “Control”
      means
      the possession, directly or indirectly, of the power to direct or cause the
      direction of the management and policies of a Person, whether through the
      ownership of voting securities, by contract or otherwise. Unless the context
      otherwise clearly requires, any reference to an “Affiliate”
      is a
      reference to an Affiliate of the Company.

     

    “Anti-Terrorism
      Order”
      means
      Executive Order No. 13,224 of September 24, 2001, Blocking Property and
      Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support
      Terrorism, 66 U.S. Fed. Reg. 49, 079 (2001), as amended.

     

    “Applicable
      Interest Rate”
      means
      either (a) 5.98% per annum, or (b) 6.23% per annum during the
      applicable period in which the Consolidated Debt to Consolidated EBITDA ratio
      exceeds 3.50 to 1.0 in accordance with the terms of Section 1.2(b).

     

    “Bank
      Credit Agreement”
      means
      the Amended and Restated Credit Agreement dated as of May 2, 2006 by and
      among the Company, certain Subsidiaries of the Company named therein, Bank
      of
      America, N.A., as administrative agent, and the other financial institutions
      party thereto, as amended, restated, joined, supplemented or otherwise modified
      from time to time, and any renewals, extensions or replacements thereof, which
      constitute the primary bank credit facility of the Company and its
      Subsidiaries.

     

    “Business
      Day”
      means
      any day other than a Saturday, a Sunday or a day on which commercial banks
      in
      New York, New York are required or authorized to be closed.

     

    “Capital
      Lease”
      means,
      at any time, a lease with respect to which the lessee is required concurrently
      to recognize the acquisition of an asset and the incurrence of a liability
      in
      accordance with GAAP.

     

    “Capital
      Lease Obligation”
      means,
      with respect to any Person and a Capital Lease, the amount of the obligation
      of
      such Person as the lessee under such Capital Lease which would, in accordance
      with GAAP, appear as a liability on a balance sheet of such Person.

     

    “Closing”
      is
      defined in Section 3.

     

    “Code”
      means
      the Internal Revenue Code of 1986, as amended from time to time, and the rules
      and regulations promulgated thereunder from time to time.

     

    “Company”
      means
      The Hain Celestial Group, Inc., a Delaware corporation.

     

    “Confidential
      Information”
      is
      defined in Section 20.

     

    “Consolidated
      Debt”
      means as
      of any date of determination the total amount of all Debt of the Company and
      its
      Restricted Subsidiaries determined on a consolidated basis in accordance with
      GAAP.

     

    “Consolidated
      EBITDA”
      shall
      mean, for any period, Consolidated Net Income for such period, plus, to the
      extent deducted in computing such Consolidated Net Income and without
      duplication, (a) depreciation, depletion, if any, and amortization expense
      for such period, (b) Consolidated Interest Expense for such period,
      (c) income tax expense for such period, (d) other non cash charges for
      such period, (e) reasonable and customary acquisition or merger charges,
      restructuring charges that are both non cash and non-recurring and impairment
      of
      assets write-offs that are both non cash and non-recurring, (f) reasonable
      and customary charges which arise from the existence and subsequent write-off
      of
      duplicative facilities related directly an acquisition consummated by the
      Company or any Restricted Subsidiaries, and (g) cumulative non cash change
      in accounting effects or non cash extraordinary items, and minus the sum of
      (y) all extraordinary or unusual gains, and (z) all interest income
      all as determined in accordance with GAAP. For purposes of calculating
      Consolidated EBITDA for any period of four consecutive quarters, if during
      such
      period the Company or any Restricted Subsidiary shall have acquired or disposed
      of any Person or acquired or disposed of all or substantially all of the
      operating assets of any Person, Consolidated EBITDA for such period shall be
      calculated after giving pro forma effect thereto as if such transaction occurred
      on the first day of such period.

     

    “Consolidated
      Interest Expense”
      shall
      mean, for any period, the gross interest expense of the Company and its
      Restricted Subsidiaries deducted in the calculation of Consolidated Net Income
      for such period, determined on a consolidated basis in accordance with
      GAAP.

     

    “Consolidated
      Net Income”
      shall
      mean, for any period, the consolidated net income (or loss) of the Company
      and
      its Restricted Subsidiaries for such period, determined on a consolidated basis
      in accordance with GAAP.

     

    “Consolidated
      Net Worth” shall
      mean the consolidated stockholder’s equity of the Company and its Restricted
      Subsidiaries, as defined according to GAAP.

     

    “Consolidated
      Total Assets”
      means,
      as of any date of determination, the total amount of all assets of the Company
      and its Restricted Subsidiaries, determined on a consolidated basis in
      accordance with GAAP.

     

    “Debt” means,
      with respect to any Person, without duplication,

     

    (a)
      its
      liabilities for borrowed money;

     

    (b)
      its
      liabilities for the deferred purchase price of property acquired by such Person
      (excluding accounts payable and other accrued liabilities arising in the
      ordinary course of business but including, without limitation, all liabilities
      created or aris-ing under any conditional sale or other title retention
      agreement with respect to any such property);

     

    (c)
      its
      Capital Lease Obligations; 

     

    (d)
      its
      liabilities for borrowed money secured by any Lien with respect to any property
      owned by such Person (whether or not it has assumed or otherwise become liable
      for such liabilities); and

     

    (e)
      Guarantees
      by such Person with respect to liabilities of a type described in any of clauses
      (a) through (d) hereof.

     

    Debt
      of
      any Person shall include all obligations of such Person of the character
      described in clauses (a) through (e) to the extent such Person remains legally
      liable in respect thereof notwithstanding that any such obligation is deemed
      to
      be extinguished under GAAP. 

     

    “Default”
      means an
      event or condition the occurrence or existence of which would, with the lapse
      of
      time or the giving of notice or both, become an Event of Default.

     

    “Default
      Rate”
      means
      with respect to the Notes that rate of interest that is 2% per annum above
      the
      Applicable Interest Rate.

     

    “Due
      On Sale Debt”
      means
      any Debt of a Person being acquired by the Company or a Restricted Subsidiary
      that becomes due as a result of the consummation of such acquisition by the
      Company or a Restricted Subsidiary. 

     

    “Environmental
      Law”
      shall
      mean any applicable law, ordinance, rule, regulation, or policy having the
      force
      of law of any Governmental Authority relating to pollution or protection of
      the
      environment or to the use, handling, transportation, treatment, storage,
      disposal, release or discharge of Hazardous Materials, including, without
      limitation, the Comprehensive Environmental Response, Compensation and Liability
      Act of 1980, as amended (42 U.S.C. Section 9601, et seq.), the Hazardous
      Materials Transportation Act, as amended (49 U.S.C. Sections 1801, et
      seq.), the Resource Conservation and Recovery Act, as amended (42 U.S.C.
      Sections 6901, et seq.), and the rules and regulations promulgated pursuant
      thereto.

     

    “ERISA”
      means
      the Employee Retirement Income Security Act of 1974, as amended from time to
      time, and the rules and regulations promulgated thereunder from time to time
      in
      effect.

     

    “ERISA
      Affiliate”
      means
      any trade or business (whether or not incorporated) that is treated as a single
      employer together with the Company under section 414 of the
      Code.

     

    “Event
      of Default”
      is
      defined in Section 11.

     

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

     

    “Fair
      Market Value” means,
      at
      any time and with respect to any property, the sale value of such property
      that
      would be realized in an arm’s-length sale at such time between an informed and
      willing buyer and an informed and willing seller (neither being under a
      compulsion to buy or sell), as reasonably determined in the good faith opinion
      of the Company’s board of directors.

     

    “GAAP”
      means
      those generally accepted accounting principles as in effect from time to time
      in
      the United States of America; provided that, if the Company notifies the
      Required Holders that the Company wishes to amend any negative covenants (or
      any
      definition hereof) to eliminate the effect of any change in generally accepted
      accounting principles on the operation of such covenant or definition, then
      the
      Company's compliance with such covenant or the meaning of such definition shall
      be determined on the basis of generally accepted accounting principles in effect
      immediately before the relevant change in generally accepted accounting
      principles became effective, until either such notice is withdrawn or such
      covenant is amended in a manner satisfactory to the Company and the Required
      Holders.

     

    “Governmental
      Authority”
      means

     

    (a)
      the
      government of

     

    (i)
      the
      United States of America or any state or other political subdivision thereof,
      or

     

    (ii)
      any
      jurisdiction in which the Company or any Restricted Subsidiary conducts all
      or
      any part of its business, or which has jurisdiction over any properties of
      the
      Company or any Restricted Subsidiary, or

     

    (b)
      any
      entity exercising executive, legislative, judicial, regulatory or administrative
      functions of, or pertaining to, any such government.

     

    “Government
      Obligations”
      shall
      mean direct obligations of the United States of America or any agency or
      instrumentality of the United States of America, the payment or guarantee of
      which constitutes a full faith and credit obligation of the United States of
      America.

     

    “Guaranty”
      means,
      with respect to any Person, any obligation (except the endorsement in the
      ordinary course of business of negotiable instruments for deposit or collection)
      of such Person guaranteeing or in effect guaranteeing any Debt, dividend or
      other obligation of any other Person in any manner, whether directly or
      indirectly, including (without limitation) obligations incurred through an
      agreement, contingent or otherwise, by such Person:

     

    (a)
      to
      purchase such Debt or obligation or any property constituting security therefor
      primarily for the purpose of assuring the owner of such Debt or obligation
      of
      the ability of any other Person to make payment of the Debt or
      obligation;

     

    (b)
      to
      advance or supply funds (i) for the purchase or payment of such Debt or
      obligation, or (ii) to maintain any working capital or other balance sheet
      condition or any income statement condition of any other Person or otherwise
      to
      advance or make available funds for the purchase or payment of such Debt or
      obligation;

     

    (c)
      to
      lease
      properties or to purchase properties or services primarily for the purpose
      of
      assuring the owner of such Debt or obligation of the ability of any other Person
      to make payment of the Debt or obligation; or

     

    (d)
      otherwise
      to assure the owner of such Debt or obligation against loss in respect
      thereof.

     

    In
      any
      computation of the Debt or other liabilities of the obligor under any Guaranty,
      the Debt or other obligations that are the subject of such Guaranty shall be
      assumed to be direct obligations of such obligor, provided
      that the
      amount of such Debt outstanding for purposes of this Agreement shall not exceed
      the maximum amount of Debt that is the subject of such Guaranty. 

     

    “Hazardous
      Materials”
      shall
      mean any explosives, radioactive materials, or other materials, wastes,
      substances, or chemicals regulated as toxic or hazardous or as a pollutant,
      contaminant or waste under any applicable Environmental Law.

     

    “holder”
      means,
      with respect to any Note, the Person in whose name such Note is registered
      in
      the register maintained by the Company pursuant to
      Section 13.1.

     

    “Institutional
      Investor”
      means
      (a) any original purchaser of a Note, (b) any holder of more than
      $2,000,000 of the aggregate principal amount of the Notes then outstanding,
      and
      (c) any bank, trust company, savings and loan association or other
      financial institution, any pension plan, any investment company, any insurance
      company, any broker or dealer, or any other similar financial institution or
      entity, regardless of legal form.

     

    “Intellectual
      Property”
      is
      defined in Section 5.11.

     

    “Investments”
      shall
      mean all investments, in cash or by delivery of property made, directly or
      indirectly in any Person, whether by acquisition of shares of capital stock,
      Debt or other obligations or securities or by loan, advance, capital
      contribution or otherwise.

     

    ÒLienÓ
      means
      any
      mortgage, pledge, security interest, hypothecation, assignment, deposit
      arrangement, encumbrance, or preference, priority or other security agreement
      or
      preferential arrangement of any kind or nature whatsoever (including, without
      limitation, any conditional sale or other title retention agreement, any Capital
      Lease and any financing lease having substantially the same economic effect
      as
      any of the foregoing).

     

    “Make-Whole
      Amount”
      shall
      have the meaning set forth in Section 8.7 with respect to any
      Note.

     

    “Material”
      means
      material in relation to the business, operations, affairs, financial condition,
      assets or properties of the Company and its Restricted Subsidiaries taken as
      a
      whole.

     

    “Material
      Adverse Effect”
      means a
      material adverse effect on (a) the business, operations, financial
      condition, assets or properties of the Company and its Restricted Subsidiaries
      taken as a whole, or (b) the ability of the Company to perform its
      obligations under this Agreement and the Notes, (c) the ability of any
      Subsidiary Guarantor to perform its obligations under the Subsidiary Guaranty
      or
      (d) the validity or enforceability of this Agreement, the Notes or the
      Subsidiary Guaranty.

     

    “Material
      Subsidiary” means,
      at
      any time, any Restricted Subsidiary of the Company which, together with all
      other Restricted Subsidiaries of such Restricted Subsidiary, accounts for more
      than (i) 5% of the consolidated assets of the Company and its Restricted
      Subsidiaries or (ii) 5% of consolidated revenue of the Company and its
      Restricted Subsidiaries.

     

    “Memorandum”
      is
      defined in Section 5.3.

     

    “Moody’s”
      shall
      mean Moody Investors Service, Inc. 

     

    “Multiemployer
      Plan”
      means
      any Plan that is a “multiemployer plan” (as such term is defined in
      Section 4001(a)(3) of ERISA).

     

    “Notes”
      is
      defined in Section 1 of this Agreement.

     

    “Officer’s
      Certificate”
      means a
      certificate of a Senior Financial Officer or of any other officer of the Company
      whose responsibilities extend to the subject matter of such
      certificate.

     

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

     

    “Permitted
      Securitization Transaction”
      means
      any transaction or group of transactions typically referred to as a
      securitization in which the Company or any Restricted Subsidiary sells, directly
      or indirectly through another Person, its accounts receivable on a limited
      recourse basis (i.e.,
      other
      than for recourse relating to, e.g.,
      certain
      bad acts or breaches of representations or warranties) provided
      that
      (i) each such transaction is treated as a legal true sale to a special
      purpose bankruptcy remote entity that obtains debt financing to finance the
      purchase price, and (ii) each such transaction qualifies as a sale under
      GAAP.

     

    “Person”
      means an
      individual, partnership, corporation, limited liability company, association,
      trust, unincorporated organization, or a government or agency or political
      subdivision thereof.

     

    “Plan”
      means an
“employee benefit plan” (as defined in Section 3(3) of ERISA) that is or,
      within the preceding five years, has been established or maintained, or to
      which
      contributions are or, within the preceding five years, have been made or
      required to be made, by the Company or any ERISA Affiliate or with respect
      to
      which the Company or any ERISA Affiliate may have any liability.

     

    “Priority
      Debt”
      means
      (without duplication), as of the date of any determination thereof, the sum
      of
      (i) all unsecured Debt of Restricted Subsidiaries (including all Guaranties
      of Debt of the Company but excluding (x) Debt owing to the Company or any
      Restricted Subsidiary, (y) Debt outstanding at the time such Person became
      a Restricted Subsidiary (other than an Unrestricted Subsidiary which is
      designated as a Restricted Subsidiary pursuant to Section 9.6 hereof),
      provided that such Debt shall have not been incurred in contemplation of such
      person becoming a Restricted Subsidiary, and (z) all Guaranties of Debt of
      the Company by any Restricted Subsidiary which has also guaranteed the Notes
      and
      (ii) all Debt of the Company and its Restricted Subsidiaries secured by
      Liens other than Debt secured by Liens permitted by subparagraphs (a)
      through (k), inclusive, of Section 10.3.

     

    “property”
      or
“properties”
      means,
      unless otherwise specifically limited, real or personal property of any kind,
      tangible or intangible, choate or inchoate.

     

    “Purchasers”
      means
      the purchasers of the Notes named in Schedule A hereto.

     

    “QPAM
      Exemption”
      means
      Prohibited Transaction Class Exemption 84-14 issued by the United States
      Department of Labor.

     

    “Qualified
      Institutional Buyer” means
      any
      Person who is a qualified institutional buyer within the meaning of such term
      as
      set forth in Rule 144(a)(1) under the Securities Act.

     

    “Ratable
      Portion”
      means,
      with respect to any Note, an amount equal to the product of (x) the amount
      equal
      to the net proceeds being so applied to the prepayment of Senior Debt in
      accordance with Section 10.4(2), multiplied by (y) a fraction the numerator
      of which is the outstanding principal amount of such Note and the denominator
      of
      which is the aggregate principal amount of Senior Debt of the Company and its
      Restricted Subsidiaries being prepaid pursuant to Sections 8.4
      and 10.4(2).

     

    “Required
      Holders”
      means,
      at any time, the holders of more than 50% in principal amount of the Notes
      at
      the time outstanding (exclusive of Notes then owned by the Company or any of
      its
      Affiliates and any Notes held by parties who are contractually required to
      abstain from voting with respect to matters affecting the holders of the
      Notes).

     

    “Responsible
      Officer”
      means
      any Senior Financial Officer and any other officer of the Company with
      responsibility for the administration of the relevant portion of this
      Agreement.

     

    “Restricted
      Subsidiary”
      means
      any Subsidiary in which: (i) at least a majority of the voting securities are
      owned by the Company and/or one or more Restricted Subsidiaries and
      (ii) the Company has not designated an Unrestricted Subsidiary by notice in
      writing given to the holders of the Notes. 

     

    “S&P”
      means
      Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies,
      Inc.

     

    “Securities
      Act”
      means
      the Securities Act of 1933, as amended from time to time.

     

    “Senior
      Debt”
      means,
      as of the date of any determination thereof, all Consolidated Debt, other than
      Subordinated Debt.

     

    “Senior
      Financial Officer”
      means
      the chief financial officer, principal accounting officer, treasurer or
      comptroller of the Company.

     

    “Subordinated
      Debt”
      means
      all unsecured Debt of the Company which shall contain or have applicable thereto
      subordination provisions providing for the subordination thereof to other Debt
      of the Company (including, without limitation, the obligations of the Company
      under this Agreement).

     

    “Subsidiary”
      means,
      as to any Person, any corporation, association or other business entity in
      which
      such Person or one or more of its Subsidiaries or such Person and one or more
      of
      its Subsidiaries owns sufficient equity or voting interests to enable it or
      them
      (as a group) ordinarily, in the absence of contingencies, to elect a majority
      of
      the directors (or Persons performing similar functions) of such entity, and
      any
      partnership or joint venture if more than a 50% interest in the profits or
      capital thereof is owned by such Person or one or more of its Subsidiaries
      or
      such Person and one or more of its Subsidiaries (unless such partnership can
      and
      does ordinarily take major business actions without the prior approval of such
      Person or one or more of its Subsidiaries). Unless the context otherwise clearly
      requires, any reference to a “Subsidiary” is a reference to a Subsidiary of the
      Company.

     

    “Subsidiary
      Guarantor”
      means
      each Subsidiary which is party to the Subsidiary Guaranty.

     

    “Subsidiary
      Guaranty” is
      defined in Section 2.2 of this Agreement.

     

    “Target
      Company”
      means
      any Person that (i) is acquired by the Company or any Restricted Subsidiary
      and
      is designated as a Restricted Subsidiary on the date such Target Company is
      so
      acquired, and (ii) is an obligor of any Due On Sale Debt.

     

    “Transition
      Period”
      means
      the period commencing on the date the Company or any Restricted Subsidiary
      acquires any Person or line of business, provided
      that at
      such time and after giving effect thereto the Company and its Restricted
      Subsidiaries are in compliance with Section 10.8, and ending on the last day
      of
      the fourth full fiscal quarter following the date of the consummation of such
      acquisition.

     

    “Unrestricted
      Subsidiary” means
      any
      Subsidiary so designated by the Company.

     

    “USA
      Patriot Act”
      means
      United States Public Law 107-56, Uniting and Strengthening America by Providing
      Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT
      ACT)
      Act of 2001, as amended from time to time, and the rules and regulations
      promulgated thereunder from time to time in effect.Exhibit 10.23 (Form of Award Notice - Restricted Stock Award)

    
      

    

    Exhibit
      10.23

    CELADON
      GROUP, INC.

    2006
      OMNIBUS INCENTIVE PLAN

    

    

    AWARD
      NOTICE

    

    

    
      	
               

              GRANTEE:

            	 	 
	
               

              TYPE
                OF AWARD:

            	 	
              Restricted
                Stock Award

            
	
               

              NUMBER
                OF SHARES:

            	 	 
	
               

              DATE
                OF GRANT:

            	 	 

    

    

    

        1.     Grant
      of Restricted Stock.
      This
      Award Notice serves to notify you that Celadon Group, Inc., a Delaware
      corporation (the “Company”),
      hereby grants to you, under the Company’s 2006 Omnibus Incentive Plan (the
“Plan”),
      a
      Restricted Stock Award (the “Award”),
      on
      the terms and conditions set forth in this Award Notice and the Plan, of the
      number of shares set forth above (“Restricted
      Shares”)
      of the
      Company’s common stock, par value $0.033 per share (the “Common
      Stock”),
      set
      forth above. The Plan is incorporated herein by reference and made a part of
      this Award Notice. A copy of the Plan is available from the Company’s Chief
      Financial Officer upon request. You should review the terms of this Award Notice
      and the Plan carefully. The capitalized terms used in this Award Notice are
      defined in the Plan.

    

        2.     Restrictions
      and Vesting.
      Subject
      to the terms and conditions set forth in this Award Notice and the Plan,
      provided you are still in the employment or service of the Company or any
      Subsidiary at that time, one or more portions of the Restricted Shares shall
      vest, and the restrictions thereon shall lapse, as of the dates specified in
      the
      table below (the “Vesting Dates”) if (and only if) the Company achieves at least
      the Adjusted Earnings Per Share (as defined below) indicated on the table below
      for the performance period applicable to each such Vesting Date. Any fractional
      share resulting from proration shall vest on the last Vesting Date. To the
      extent the Company achieves Adjusted Earnings Per Share equal to or greater
      than
      the target for any subsequent Vesting Date, then all shares eligible for vesting
      at such higher target level shall immediately vest; provided, however, with
      the
      exception of a Permitted Tax Sale (as hereinafter defined) any Restricted Shares
      that vest prior to the applicable regularly scheduled Vesting Date set forth
      below must be held by you (you cannot sell, transfer, or otherwise dispose
      such
      Restricted Shares) until after such regularly scheduled Vesting Date. A
“Permitted Tax Sale” shall mean a sale of that number of Restricted Shares
      sufficient to pay taxes on the Restricted Shares that vested at an assumed
      45%
      tax rate. Any Restricted Shares that do not vest as of a particular Vesting
      Date
      nevertheless shall be eligible for vesting, and shall vest, if the Company
      achieves the applicable Adjusted Earnings Per Share target for a subsequent
      Vesting Date.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
               

              Adjusted
                EPS 

              Performance

              Target

            	
               

               

               

              Vesting
                Date and Performance Period

            	
              Percentage
                of Shares 

              Subject
                to Vesting and Release from 

              Restrictions
                for the Performance 

              Period
                Ended on the Vesting Date

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 

    

    

        For
      purposes
      of this Award Notice, “Adjusted
      Earnings Per Share”
means
      the Company’s consolidated diluted earnings per share for the just completed
      fiscal year as set forth in the final audit for the Company’s consolidated group
      and adjusted up or down by the amount compensation expense is increased or
      decreased in such audit by changes in the Common Stock price reported by NASDAQ
      and the effect of any accelerated vesting of restricted stock
      awards.

    

        3.     Determination
      of Vesting.
      Between
      the end of fiscal___ and ____ and the Vesting Date, the Company’s Compensation
      Committee (the “Committee”)
      shall
      review the Company’s financial statements to determine the Adjusted Earnings Per
      Share. Based upon that review and determination, the Committee shall then
      instruct the Company as to whether any of the Restricted Shares shall vest
      and
      be released from the restrictions thereon.

    

        4.     Adjustment
      for Certain Events.
      The
      Yearly Performance Goal and number of Restricted Shares will be adjusted ratably
      in accordance with Section 6.2 of the Plan.

    

        5.     Effect
      of
      Death or Other Termination of Employment.
      In the
      event of your death or the termination of your employment or service to the
      Company or any Subsidiary for any reason prior to the complete vesting of the
      Restricted Shares, including the review and determination of results by the
      Committee as provided in Section 3, the unvested portion of the Restricted
      Shares shall be forfeited as of the date of your death or such termination.
      

    

        6.     Effect
      of
      Change In Control.

    

            (a)     In
      General.
      Upon
      the occurrence of a Change In Control (as defined below), any unvested portion
      of the Restricted Shares shall immediately vest as of the date of the occurrence
      of such event. 

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

            (b)     “Change
      In Control” Defined.
      The
      term “Change
      In Control”
means
      a
      change in control of the Company of a nature that would be required to be
      reported in response to Item 5.01 of a Current Report on Form 8-K, as
      in effect on December 31, 2004, pursuant to Section 13 or 15(d) of the
      Exchange Act; provided that, without limitation, a Change In Control shall
      be
      deemed to have occurred at such time as: 

    

        (i)     Any
      “person” within the meaning of Section 14(d)(2) of the Exchange Act and
      Section 13(d)(3) of the Exchange Act, other than a Permitted Holder becomes
      the “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act,
      directly or indirectly, of fifty percent (50%) or more of the combined voting
      power of the outstanding securities of the Company ordinarily having the right
      to vote in the election of directors; provided, however, that the following
      will
      not constitute a Change In Control: any acquisition by any corporation if,
      immediately following such acquisition, more than seventy-five percent (75%)
      of
      the outstanding securities of the acquiring corporation (or the parent thereof)
      ordinarily having the right to vote in the election of directors is beneficially
      owned by all or substantially all of those persons who, immediately prior to
      such acquisition, were the beneficial owners of the outstanding securities
      of
      the Company ordinarily having the right to vote in the election of directors;
      

    

        (ii)     Individuals
      who constitute the Board on January 12, 2006, (the “Incumbent
      Board”)
      have
      ceased for any reason to constitute at least a majority thereof, provided that
      any person becoming a director after January 12, 2006, whose election, or
      nomination for election by the Company’s stockholders, was approved by a vote of
      at least three-fourths (3/4) of the directors comprising the Incumbent Board,
      either by a specific vote or by approval of the proxy statement of the Company
      in which such person is named as a nominee for director without objection to
      such nomination (other than an election or nomination of an individual whose
      initial assumption of office is in connection with an actual or threatened
      “election contest” relating to the election of directors of the Company, as such
      terms are used in Rule 14a-11 under the Exchange Act as in effect on
      January 23, 2000, or “tender offer,” as such term is used in
      Section 14(d) of the Exchange Act), shall be, for purposes of the Plan,
      considered as though such person were a member of the Incumbent Board;

    

        (iii)     Upon
      the
      consummation by the Company of a reorganization, merger, or consolidation,
      other
      than one with respect to which all or substantially all of those persons who
      were the beneficial owners, immediately prior to such reorganization, merger
      or
      consolidation, of outstanding securities of the Company ordinarily having the
      right to vote in the election of directors own, immediately after such
      transaction, more than seventy-five percent (75%) of the outstanding securities
      of the resulting corporation ordinarily having the right to vote in the election
      of directors; or 

    

        (iv)     Upon
      the
      approval by the Company’s stockholders of a complete liquidation and dissolution
      of the Company or the sale or other disposition of all or substantially all
      of
      the assets of the Company other than to a Subsidiary.

    

            (c)     “Permitted
      Holder” Defined.
      The
      term “Permitted
      Holder”
means:
      (i) the Company or a Subsidiary or (ii) any employee benefit plan
      sponsored by the Company or any Subsidiary.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

        7.     Book-Entry
      Registration.
      The
      Restricted Shares initially will be evidenced by book-entry registration only,
      without the issuance of a certificate representing the Restricted
      Shares.

    

        8.     Issuance
      of Shares.
      Subject
      to Sections 9 and 13 of this Award Notice, upon the vesting of any
      Restricted Shares pursuant to this Award Notice, the Company shall issue a
      certificate representing such vested Restricted Shares as promptly as
      practicable following the date of vesting. The Restricted Shares may be issued
      during your lifetime only to you, or after your death to your designated
      beneficiary, or, in the absence of such beneficiary, to your duly qualified
      personal representative.

    

        9.     Withholding.
      You
      shall pay to the Company, or make other arrangements satisfactory to the Company
      regarding the payment of, any federal, state, or local taxes of any kind
      required by applicable law to be withheld with respect to the Restricted Shares
      awarded under this Award Notice. Your right to receive the Restricted Shares
      under this Award Notice is subject to, and conditioned on, your payment of
      such
      withholding amounts.

    

        10.    Nonassignability.
      The
      Restricted Shares and the right to vote such shares and to receive dividends
      thereon, may not, except as otherwise provided in the Plan, be sold, assigned,
      transferred, pledged, or encumbered in any way prior to the vesting of such
      shares, whether by operation of law or otherwise, except by will or the laws
      of
      descent and distribution. After vesting, the sale or other transfer of the
      shares of Common Stock shall be subject to applicable laws, regulations, and
      stock exchange or quotation system rules.

    

        11.     Rights
      as
      a Stockholder; Limitation on Rights.
      Unless
      the Award is cancelled as provided in Section 5 or 6 of this Award Notice,
      prior
      to the vesting of the Restricted Shares, you will have all of the other rights
      of a stockholder with respect to the Restricted Shares so awarded, including,
      but not limited to, the right to receive such cash dividends, if any, as may
      be
      declared on such shares from time to time and the right to vote (in person
      or by
      proxy) such shares at any meeting of stockholders of the Company. Neither the
      Plan, the granting of the Award, nor this Award Notice gives you any right
      to
      remain in the employment or service of the Company or any
      Subsidiary.

    

        12.    Rights
      of the Company and Subsidiaries.
      This
      Award Notice does not affect the right of the Company or any Subsidiary to
      take
      any corporate action whatsoever, including without limitation its right to
      recapitalize, reorganize, or make other changes in its capital structure or
      business, merge or consolidate, issue bonds, notes, shares of Common Stock
      or
      other securities, including preferred stock, or options therefor, dissolve
      or
      liquidate, or sell or transfer any part of its assets or business.

    

        13.    Restrictions
      on Issuance of Shares.
      If at
      any time the Company determines that the listing, registration, or qualification
      of the Restricted Shares upon any securities exchange or quotation system,
      or
      under any state or federal law, or the approval of any governmental agency,
      is
      necessary or advisable as a condition to the issuance of a certificate
      representing any vested Restricted Shares, such issuance may not be made in
      whole or in part unless and until such listing, registration, qualification
      or
      approval shall have been effected or obtained free of any conditions not
      acceptable to the Company. 

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

        14.     Plan
      Controls.
      This
      Award is subject to all of the provisions of the Plan, which is hereby
      incorporated by reference, and is further subject to all the interpretations,
      amendments, rules, and regulations that may from time to time be promulgated
      and
      adopted by the Committee pursuant to the Plan. In the event of any conflict
      among the provisions of the Plan and this Award Notice, the provisions of the
      Plan will be controlling and determinative. 

    

        15.     Amendment.
      Except
      as otherwise provided by the Plan, the Company may only alter, amend, or
      terminate this Award with your consent. 

    

        16.     Governing
      Law.
      This
      Award Notice shall be governed by and construed in accordance with the laws
      of
      the State of Delaware, except as superseded by applicable federal law, without
      giving effect to its conflicts of law provisions. 

    

        17.     Notices.
      All
      notices and other communications to the Company required or permitted under
      this
      Award Notice shall be written, and shall be either delivered personally or
      sent
      by registered or certified first-class mail, postage prepaid and return receipt
      requested, or by telex or telecopier, addressed to the Company’s office at
      9503 East 33rd
      Street,
      One Celadon Drive, Indianapolis, Indiana 46235, Attn: Chief Financial
      Officer. Each such notice and other communication delivered personally shall
      be
      deemed to have been given when delivered. Each such notice and other
      communication delivered by mail shall be deemed to have been given when it
      is
      deposited in the United States mail in the manner specified herein, and each
      such notice and other communication delivered by telex or telecopier shall
      be
      deemed to have been given when it is so transmitted and the appropriate answer
      back is received.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    ACKNOWLEDGEMENT

    

    The
      undersigned acknowledges receipt of, and understands and agrees to be bound
      by,
      this Award Notice and the Plan. The undersigned further acknowledges that this
      Award Notice and the Plan set forth the entire understanding between him or
      her
      and the Company regarding the Restricted Stock granted by this Award Notice
      and
      that this Award Notice and the Plan supersede all prior oral and written
      agreements on that subject.

    

    

    
      	
              Dated:
                _______________, 20___

            	 
	 	 
	 	
              Grantee:

            
	 	 
	 	 
	 	 
	 	 
	 	
              Celadon
                Group, Inc.

            
	 	 
	 	 
	 	
              By:

            	 
	 	
              Name:

            	 
	 	
              Title:

            	 

    

    

    Back
      to Form 10-Q

    
      
        
        

      

      
        6

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