Document:

exv10w5

 

Exhibit 10.5

AGREEMENT

     This Agreement entered into as of this 27th day of April, 2004 between All
American Pet Company Inc., a New York corporation (the “Company”) and Mr. George LaCapra.

     WHEREAS, Mr. George LaCapra has agreed to advance the Company up to $150,000 pursuant to a
Non-Negotiable Promissory Note in the form attached hereto; and

     WHEREAS, the Company is agreeable to issuing an additional $50,000 in lieu of warrants to
purchase shares of the Company’s Common Stock as additional compensation for the loan being made to
the Company.

     NOW, THEREFORE, the parties hereto agree as follows:

     1. Loan to Company. Mr. George LaCapra agrees to advance to the Company, by way of
loan, up to $150,000, such advances to be evidenced by a Non-Negotiable Promissory Note in the form
attached hereto as Exhibit A (the “Note”).

     2. In consideration of the Loan to the Company, the Company agrees to compensate Mr. LaCapra
$50,000 in lieu of a Common Stock Purchase Warrant. In addition, the Company agrees to pay Mr.
LaCapra’s legal fees not to exceed $10,000.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 
	 
	 	ALL AMERICAN PET COMPANY, INC.

 	 
	 
	 	By:  	/s/ Barry Schwartz
 	 
	 	 	Barry Schwartz, President 	 
	 	 	 	 

	 	 	 	 	 
	 	 	 
	 	/s/ Mr. George LaCapra
 	 
	 	Mr. George LaCapra 	 
	 	 	 
	 

 

 

NON-NEGOTIABLE PROMISSORY NOTE

	 	 	 
	$200,000.00

	 	New York, New York

April 27, 2004

     FOR VALUE RECEIVED, the undersigned ALL AMERICAN PET COMPANY, INC., a New York corporation
(“Borrower”) promises to pay on April 26, 2005, to Mr. George LaCapra (“Lender”), the principal sum
of up to Two Hundred Thousand Dollars ($200,000.00), pursuant to advances made to the Borrower as
detailed on Schedule A hereto, with interest on the unpaid principal balance from the date of each
such advance until paid, at the rate of ten percent (10%) per annum during the time this Promissory
Note remains outstanding and unpaid. Principal and interest shall be payable at Lenders Address,
135 South Main Street, Thomaston, CT 06787 or any other place which is designated by the Lender in
writing to the Borrower.

     Interest on the unpaid principal sum shall be computed on the basis of a 360-day year and will
be paid on the due date of this Promissory Note. This Promissory Note may be prepaid at anytime
without penalty or premium.

     This Promissory Note has been issued pursuant to an Agreement between the Borrower and the
Lender pursuant to which the Lender will be compensated an additional $50,000 in lieu of any
Warrants to purchase shares of the Borrower’s Common Stock.

     This Promissory Note may not be changed or cancelled, except in writing.

     This Promissory Note will be governed by the laws of the State of New York.

	 	 	 	 	 
	 	ALL AMERICAN PET COMPANY INC.

 	 
	 	By:  	/s/ Barry Schwartz
 	 
	 	 	Barry Schwartz, President 	 
	 	 	 	 
	 

 

 

Mr. George LaCapra

c/o Quality Rolling & Deburring Co., Inc.

1135 South Main Street

Thomaston, CT 06787

April 27, 2005

All American Pet Company

242 South Spalding Drive

Beverly Hills, CA 90212

	 	 	 
	Re:

	 	All American Pet Company Inc.

Ladies and Gentlemen:

     This will memorialize our various discussions and conversations about the obligations of the
All American Pet Company Inc. (“AAPC”), to George LaCapra (“Mr. LaCapra”) under the Loan Agreement,
dated April 27, 2004 (collectively the “Loan Agreement”).

     As we have discussed, AAPC has been seeking sources of investment or financing for its
business and has asked Mr. LaCapra to restructure his entitlements under the Loan Agreement. Based
on representations made concerning (a) the viability of AAPC and (b) the lack of available
alternative sources of funds, Mr. LaCapra is willing to restructure his interests and entitlements
under the Loan Agreement to allow AAPC to enter into a transaction with United California Factors
(“UCF”) under which AAPC is expected to factor its accounts and its receivables to UCF.

     In connection with and to allow the UCF transaction to occur, and upon the consideration of
the mutual covenants contained herein, LaCapra, AAPC, hereby agree as follows:

	1.	 	AAPC will enter into an Agreement with UCF whereby AAPC will factor its receivables and will
obtain production financing from UCF (the “UCF Agreement”). Bershan and Schwartz shall
personally guarantee the UCF Agreement if and to the extent required by UCF. LaCapra will not
guarantee the UCF Agreement.

	2.	 	Upon receipt of a copy of the executed UCF Agreement and his approval of its terms, LaCapra
will enter into an Intercreditor Agreement with UCF under which he will subordinate his
interest in certain of the collateral granted to him by AAPC in connection with the Loan
Agreement as more particularly provided in that Intercreditor Agreement.

	3.	 	LaCapra will accept full and final payment in the total amount of $250,000.00 in satisfaction
of his entitlements under the Loan Agreement upon full and complete compliance, time being
of the essence, with the following:

	 	a)	 	Payment Schedule and due dates:

	 	 	 	 	 	 	 	 	 
	(i)
	 	April 30, 2005	 	$	5,000.00	 
	(ii)
	 	May 31, 2005	 	$	5,000.00	 

 

 

	 	 	 	 	 	 	 	 	 
	(iii)
	 	June 30, 2005	 	$	5,000.00	 
	(iv)
	 	July 31, 2005	 	$	10,000.00	 
	(v)
	 	August 31, 2005	 	$	15,000.00	 
	(vi)
	 	September 30, 2005	 	$	210,000.00	 

	 	b)	 	In addition to payment as above provided, AAPC, will immediately upon request provide
to LaCapra, at no cost to LaCapra, such financial information and records as he may from
time to time request including but not in any way limited to the sales numbers, pending
orders, amounts receivable, amounts payable, contract expectancies, amounts outstanding
or amounts paid to UCF, trial balances and general ledgers. LaCapra does not hereby
restrict the type or the amount of financial information he may obtain and request from
the corporation by virtue of the foregoing recitation.

	4.	 	After AAPC’s full compliance with the foregoing, LaCapra will (a) return any Promissory Note
evidencing any obligation from AAPC to LaCapra marked “Paid.”
	 
	5.	 	Except as specifically modified by the terms of this Agreement, the Loan Agreement is not
affected hereby and shall remain in full force and effect. Nothing herein shall be construed
to impair LaCapra’s security under the Loan Agreement nor to limit or impair any rights or
powers that LaCapra now enjoys or may hereafter enjoy under the Loan Agreement for recovery of
the indebtedness secured thereby except as expressly modified herein.
	 
	6.	 	The Loan Agreement is hereby ratified and confirmed by AAPC, and every provision, covenant,
warranty, representation, condition, obligation, right and power contained in and under the
Loan Agreement as amended and modified, shall continue in full force and effect, affected by
this Agreement only to the extent of the amendments and modifications expressly set forth
herein. AAPC, individually and collectively affirm that (a) there exists no defense to the
enforcement of the Loan Agreement and executes the within agreement intending to be legally
bound thereby and (b) each has received good and valuable consideration in connection with the
present agreement.
	 
	7.	 	The covenants and agreements herein set forth shall bind and inure to the benefit of the
parties hereto and their respective heirs, executors, administrators, successors and assigns.
	 
	8.	 	The consummation of the transactions hereby contemplated and the performance of the
obligations of AAPC, Bershan and/or Schwartz under the Loan Documents, as amended hereby, will
not result in the breach of, or constitute default under, any mortgage, security deed, deed of
trust, lease, bank loan or credit agreement, trust agreement or other instrument to which
AAPC, Bershan and/or Schwartz is a party or by he may be bound or affected.
	 
	9.	 	This agreement shall be construed in accordance with the laws of the State of Connecticut.
	 
	10.	 	This agreement may be signed in counterparts.

 

 

     In witness whereof, the parties put their hands and seals intending to be bound hereby.

	 	 	 	 	 
	 	 	 
	 	/s/ George LaCapra	 
	 	George LaCapra 	 
	 	 	 
	 

Received, Reviewed and Agreed:

ALL AMERICAN PET COMPANY

	 	 	 	 	 
	 	 	 
	By  	/s/ Barry Schwartz	 	 
	 	Barry Schwartz 	 	 
	 	 	 	 
	 

	 	 	 
	cc:

	 	Andy Saulitis, EsquireEXHIBIT 10.17

EXECUTION COPY

 

BRAND
SERVICES, INC.

 

This AMENDMENT AGREEMENT (this “Amendment”) is dated as of June 8, 2006, and entered into by
and among BRAND SERVICES, INC. (“Borrower”), THE
FINANCIAL INSTITUTIONS LISTED ON THE SIGNATURE PAGES HEREOF (“Lenders”), CREDIT SUISSE, as administrative agent for Lenders
(in such capacity, “Administrative Agent”),
and, solely for purposes of Section 10 hereof, the CREDIT SUPPORT PARTIES LISTED ON THE SIGNATURE PAGES
HEREOF, and is made with reference to that certain Amended and
Restated Credit Agreement dated as of July 29, 2005, by and among Borrower, the
lenders from time to time party thereto (the “Existing
Lenders”) and Administrative Agent (the “Existing
Credit Agreement”). 
Capitalized terms used herein without definition shall have the same
meanings herein as set forth in the Existing Credit Agreement or the Restated
Credit Agreement (as defined below), as applicable.

I.              PURSUANT
TO THE EXISTING CREDIT AGREEMENT, THE EXISTING LENDERS HAVE EXTENDED, AND HAVE
AGREED TO EXTEND, CREDIT TO BORROWER.

II.            BORROWER HAS INFORMED ADMINISTRATIVE AGENT THAT PARENT
INTENDS TO EFFECT AN INITIAL PUBLIC OFFERING PURSUANT TO WHICH IT WILL OFFER
AND SELL SHARES OF PARENT’S COMMON STOCK IN AN UNDERWRITTEN OFFERING REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION (THE “IPO”) AND WILL RAISE
APPROXIMATELY $250,000,000 OF GROSS CASH PROCEEDS THEREFROM (THE “IPO
PROCEEDS”).

III.           IN CONNECTION WITH THE FOREGOING, (I) BORROWER HAS
REQUESTED THAT LENDERS EXTEND CREDIT IN THE FORM OF SENIOR SECURED TERM LOANS
(“SUPPLEMENTAL TERM LOANS”) TO BORROWER ON THE RESTATEMENT
DATE (AS DEFINED BELOW) IN AN AGGREGATE PRINCIPAL AMOUNT OF $100,000,000
SUBJECT TO THE TERMS AND CONDITIONS SET FORTH HEREIN AND IN THE RESTATED CREDIT
AGREEMENT, (II) BORROWER WILL OFFER TO PURCHASE (THE “SENIOR
SUBORDINATED NOTES TENDER OFFER”) ALL OF ITS ISSUED AND
OUTSTANDING SENIOR SUBORDINATED NOTES AND WILL CONCURRENTLY SOLICIT CONSENTS
FROM THE HOLDERS THEREOF (THE “SENIOR

 

SUBORDINATED NOTES CONSENT SOLICITATION”) TO AMEND THE
SENIOR SUBORDINATED NOTE INDENTURE TO ELIMINATE SUBSTANTIALLY ALL OF THE
RESTRICTIVE COVENANTS AND ELIMINATE OR MODIFY CERTAIN EVENT OF DEFAULT AND
RELATED PROVISIONS CONTAINED THEREIN, (III) BORROWER WILL, WITH THE
PROCEEDS OF THE SUPPLEMENTAL TERM LOANS (AND/OR ANY PORTION OF THE IPO PROCEEDS
CONTRIBUTED TO BORROWER BY PARENT), PURCHASE ALL OF THE SENIOR SUBORDINATED
NOTES VALIDLY TENDERED AND NOT WITHDRAWN IN CONNECTION WITH THE SENIOR
SUBORDINATED NOTES TENDER OFFER (THE “SENIOR SUBORDINATED
NOTES REPURCHASE”), (IV) PARENT WILL, WITH THE IPO PROCEEDS (AND/OR
ANY PORTION OF THE PROCEEDS OF THE SUPPLEMENTAL TERM LOANS DIVIDENDED OR
DISTRIBUTED TO PARENT BY BORROWER), (A) REPURCHASE ALL ISSUED AND OUTSTANDING
PARENT JUNIOR SUBORDINATED NOTES (AS DEFINED IN THE EXISTING CREDIT AGREEMENT)
(THE “PARENT JUNIOR SUBORDINATED NOTES REPURCHASE”), (B) REDEEM ALL OF
ITS OUTSTANDING SHARES OF SPONSOR PREFERRED STOCK (AS DEFINED IN THE EXISTING
CREDIT AGREEMENT) AND PAY ALL ACCRUED AND UNPAID DIVIDENDS THEREON (THE “SPONSOR
PREFERRED STOCK REDEMPTION”) AND (C) REPURCHASE UP TO $35,000,000 OF
PARENT COMMON STOCK ISSUED TO HOLDINGS’ CLASS A UNIT HOLDERS IN CONNECTION WITH
THE LIQUIDATION OF HOLDINGS (“PARENT COMMON STOCK
REPURCHASE”), (V) PARENT AND BORROWER WILL PAY PREPAYMENT
PENALTIES OR TENDER PREMIUMS (COLLECTIVELY, THE “PREPAYMENT
PENALTIES”) IN CONNECTION WITH THE SENIOR SUBORDINATED NOTES REPURCHASE, THE
PARENT JUNIOR SUBORDINATED NOTES REPURCHASE AND THE SPONSOR PREFERRED STOCK
REDEMPTION AND (VI) FEES AND EXPENSES INCURRED IN CONNECTION WITH THE
FOREGOING (THE “TRANSACTION COSTS”) WILL BE PAID (SUCH
TRANSACTIONS DESCRIBED IN CLAUSES (I) THROUGH (VI) ABOVE, THE “TRANSACTIONS”).

IV.           BORROWER AND LENDERS DESIRE TO AMEND AND RESTATE THE
EXISTING CREDIT AGREEMENT, EFFECTIVE UPON AND SUBJECT TO THE CONSUMMATION OF
THE PARENT IPO AND TO THE OTHER APPLICABLE CONDITIONS SET FORTH BELOW, IN THE
FORM OF THE SECOND AMENDED AND RESTATED CREDIT AGREEMENT ATTACHED HERETO AS
EXHIBIT A (THE “RESTATED CREDIT AGREEMENT”) TO (I) SET
FORTH THE TERMS AND CONDITIONS UNDER WHICH LENDERS WILL MAKE THE SUPPLEMENTAL
TERM LOANS TO BORROWER, (II) TERMINATE THE COMMITMENTS (THE “EXISTING
REVOLVING LOAN COMMITMENTS”) WITH RESPECT TO THE EXISTING $50,000,000
REVOLVING CREDIT FACILITY (THE “EXISTING
REVOLVING CREDIT FACILITY”) AND TO ESTABLISH NEW COMMITMENTS TO MAKE
REVOLVING LOANS TO BORROWER PURSUANT TO SUBSECTION 2.1A(I) OF THE RESTATED
CREDIT AGREEMENT IN AN AGGREGATE PRINCIPAL AMOUNT OF UP TO $75,000,000 (THE “NEW
REVOLVING LOAN COMMITMENTS”), (III) INCREASE THE SYNTHETIC LETTER OF
CREDIT COMMITMENTS FROM

 

ii

 

$15,000,000 TO $35,000,000,
(IV) TERMINATE LC FACILITY COMMITMENTS AND THE OBLIGATIONS OF THE LC
FACILITY LENDERS TO ISSUE LC FACILITY LETTERS OF CREDIT PURSUANT TO THE
$20,000,000 STAND-ALONE LETTER OF CREDIT FACILITY UNDER THE EXISTING CREDIT
AGREEMENT (THE “LC FACILITY”), (V) PROVIDE FOR AN
UNCOMMITTED INCREMENTAL TERM LOAN FACILITY IN AN AGGREGATE PRINCIPAL AMOUNT OF
UP TO $100,000,000 AND (VI) MAKE CERTAIN OTHER AMENDMENTS SET FORTH HEREIN
OR IN THE RESTATED CREDIT AGREEMENT, IN EACH CASE SUBJECT TO THE TERMS,
CONDITIONS AND AGREEMENTS SET FORTH HEREIN AND IN THE RESTATED CREDIT AGREEMENT
(SUCH AMENDMENTS DESCRIBED IN CLAUSES (I) THROUGH (VI) ABOVE, THE “IPO
AMENDMENTS”).

V.            BORROWER
HAS FURTHER REQUESTED THAT THE LENDERS CONSENT TO THE TRANSACTIONS AND WAIVE
COMPLIANCE BY PARENT AND BORROWER WITH CERTAIN PROVISIONS OF THE EXISTING
CREDIT AGREEMENT TO PERMIT THE CONSUMMATION OF THE TRANSACTIONS AND THE USE OF
THE IPO PROCEEDS AS CONTEMPLATED HEREBY.

VI.           BORROWER HAS FURTHER REQUESTED THAT THE EXISTING CREDIT
AGREEMENT BE AMENDED TO REDUCE THE INTEREST RATE MARGINS APPLICABLE TO THE U.S.
DOLLAR TERM LOANS (WHICH REDUCED MARGINS SHALL ALSO APPLY TO THE SUPPLEMENTAL
TERM LOANS) AND THE SYNTHETIC LETTER OF CREDIT LOANS (AND THE INTEREST RATE
MARGIN COMPONENT OF THE LETTER OF CREDIT FACILITY FEE IN RESPECT OF THE
SYNTHETIC LETTERS OF CREDIT) (THE “REPRICING
AMENDMENT”).

VII.         EACH LENDER UNDER THE RESTATED CREDIT AGREEMENT THAT AGREES
TO MAKE SUPPLEMENTAL TERM LOANS (EACH SUCH LENDER, A “SUPPLEMENTAL
TERM LENDER”) IS WILLING TO EXTEND CREDIT TO BORROWER IN THE FORM OF SUPPLEMENTAL
TERM LOANS ON THE TERMS AND SUBJECT TO THE CONDITIONS SET FORTH HEREIN AND IN
THE RESTATED CREDIT AGREEMENT AND WILL, ON THE RESTATEMENT DATE, MAKE SUCH
SUPPLEMENTAL TERM LOANS TO BORROWER IN THE MANNER CONTEMPLATED BY
SECTION 1 HEREOF AND IN ACCORDANCE WITH THE RESTATED CREDIT AGREEMENT.

VIII.        THE PERSONS IDENTIFIED ON SCHEDULE I HERETO (THE “NEW
REVOLVING LENDERS”) ARE WILLING TO PROVIDE THE NEW REVOLVING LOAN
COMMITMENTS ON THE RESTATEMENT DATE, ON THE TERMS AND SUBJECT TO THE CONDITIONS
SET FORTH HEREIN AND IN THE RESTATED CREDIT AGREEMENT.

IX.           THE PERSONS IDENTIFIED ON SCHEDULE II HERETO (THE “INCREASING
SYNTHETIC LETTER OF CREDIT LENDERS”) ARE WILLING TO PROVIDE AN
AGGREGATE OF $20,000,000 OF ADDITIONAL SYNTHETIC LETTER OF CREDIT COMMITMENTS
ON THE RESTATEMENT DATE, ON THE TERMS

 

iii

 

AND SUBJECT TO THE CONDITIONS SET
FORTH HEREIN AND IN THE RESTATED CREDIT AGREEMENT.

X.            ON
OCTOBER 16, 2002, THE DATE ON WHICH THE INITIAL LOANS WERE MADE UNDER
THE EXISTING CREDIT AGREEMENT, (A) BORROWER, EACH CREDIT SUPPORT PARTY (AS
DEFINED BELOW) AND ADMINISTRATIVE AGENT ENTERED INTO THE SECURITY AGREEMENT,
(B) PARENT AND ADMINISTRATIVE AGENT ENTERED INTO THE PARENT GUARANTY AND
(C) THE SUBSIDIARY GUARANTORS AND ADMINISTRATIVE AGENT ENTERED INTO THE
SUBSIDIARY GUARANTY, PURSUANT TO WHICH, AMONG OTHER THINGS, THE CREDIT SUPPORT
PARTIES GUARANTEED THE OBLIGATIONS OF BORROWER UNDER THE EXISTING CREDIT
AGREEMENT AND PROVIDED SECURITY THEREFOR. 
EACH CREDIT SUPPORT PARTY EXPECTS TO REALIZE SUBSTANTIAL DIRECT AND
INDIRECT BENEFITS AS A RESULT OF THE CONSUMMATION OF THE TRANSACTIONS
CONTEMPLATED BY THE RESTATED CREDIT AGREEMENT AND EACH CREDIT SUPPORT PARTY IS
WILLING TO REAFFIRM ITS OBLIGATIONS UNDER THE SECURITY AGREEMENT, THE PARENT
GUARANTY AND THE SUBSIDIARY GUARANTY, AS APPLICABLE, AND THE OTHER COLLATERAL
DOCUMENTS.

ACCORDINGLY, IN CONSIDERATION OF THE REPRESENTATIONS,
WARRANTIES, COVENANTS AND AGREEMENTS HEREIN CONTAINED, THE PARTIES HERETO AGREE
AS FOLLOWS:

 

A.            Supplemental
Term Loans.

1.             Subject
to the terms and conditions set forth herein and in the Restated Credit
Agreement, each Supplemental Term Lender agrees, severally and not jointly, to
make a Supplemental Term Loan to Borrower in Dollars on the Restatement Date in
a principal amount equal to such Supplemental Term Lender’s Supplemental Term
Loan Commitment as set forth on Schedule 2.1 to the Restated Credit
Agreement.  For purposes hereof, a person
shall become a Supplemental Term Lender and a party to the Restated Credit
Agreement (upon the effectiveness of the IPO Amendments and the Restated Credit
Agreement) by executing and delivering to Administrative Agent, on or prior to
5:00 p.m. (New York City time) on June 1, 2006, a signature page to this
Amendment.  Each Supplemental Term Lender’s
Supplemental Term Loan Commitment shall expire immediately and without further
action on September 30, 2006 if the Restatement Date does not occur on or
before that date.

2.             Each
Supplemental Term Lender shall fund its Supplemental Term Loans to
Administrative Agent on the Restatement Date, in the manner contemplated by the
Restated Credit Agreement.  The
Supplemental Term Loan Commitments of the Supplemental Term Lenders are several
and not joint, and no Supplemental Term Lender shall be responsible for any
other Supplemental Term Lender’s failure to make any Supplemental Term
Loan.  The obligations of each
Supplemental Term Lender to make Supplemental Term Loans on the Restatement
Date are subject to (a) the satisfaction or waiver in accordance with the
Restated Credit Agreement of each of the conditions set forth in subsection 4.1
of the Restated Credit

 

iv

 

Agreement and (b)
the Restated Credit Agreement and the IPO Amendments having become effective in
accordance with Section 8 hereof.

3.             The
proceeds of the Supplemental Term Loans shall be applied by Borrower (or, to
the extent any such proceeds are dividended or distributed to Parent by
Borrower, by Parent), together with the IPO Proceeds (to the extent any IPO
Proceeds are contributed by Parent to Borrower), solely (i) to finance
(a) the Senior Subordinated Notes Repurchase, (b) the Parent Junior
Subordinated Notes Repurchase, (c) the Sponsor Preferred Stock Redemption
and (d) the Parent Common Stock Repurchase, (ii) to pay the Prepayment
Penalties and (iii) to pay the Transaction Costs.

4.             Borrower
agrees to pay each Supplemental Term Lender a ticking fee equal to 0.50% per
annum of such Supplemental Term Lender’s Supplemental Term Loan Commitment
(calculated on the basis of the actual number of days elapsed in a 360-day
year), beginning to accrue on August 1, 2006 and payable to each Supplemental
Term Lender on the earlier of (i) the expiration of the Supplemental Term Loan
Commitments and (ii) the occurrence of the Restatement Date.

B.            Revolving
Loan Commitments.

1.             On
the Restatement Date, (i) all existing Revolving Loans and all other
amounts owed under the Existing Credit Agreement with respect to Revolving
Loans and Existing Revolving Loan Commitments shall be paid in full and (ii) the
Existing Revolving Loan Commitments shall be terminated in whole.

2.             Each
New Revolving Lender hereby agrees that, effective upon the Restatement Date,
it shall have made a New Revolving Loan Commitment in the amount set forth next
to such New Revolving Lender’s name on Schedule I hereto.  All such New Revolving Loan Commitments shall
constitute “Revolving Loan Commitments” and all New Revolving Lenders shall
constitute “Revolving Lenders”, in each case for all purposes of the Restated
Credit Agreement and the other Loan Documents. 
The Requisite Lenders hereby consent to the establishment of the New
Revolving Loan Commitments.

3.             Each
New Revolving Lender shall be deemed to, and hereby agrees to, effective upon
the Restatement Date, have irrevocably purchased a participation in each
Revolving Letter of Credit issued and outstanding immediately prior to the
effectiveness of the Restated Credit Agreement and any drawings honored
thereunder in an amount equal to such New Revolving Lender’s Pro Rata Share of
the maximum amount that is or at any time may become available to be drawn
thereunder.

C.            Additional
Synthetic Letter of Credit Commitments.

1.             Each
Increasing Synthetic Letter of Credit Lender hereby agrees that, effective upon
the Restatement Date, (i) in respect of each Increasing Synthetic Letter of
Credit Lender that is a Synthetic Letter of Credit Lender immediately prior to
the Restatement Date, such Increasing Synthetic Letter of Credit Lender’s
Synthetic Letter of Credit Commitment

 

v

 

in effect
immediately prior to the Restatement Date shall be increased by the amount set
forth next to such Increasing Synthetic Letter of Credit Lender’s name on
Schedule II hereto, and (ii) in respect of each Increasing Synthetic Letter of
Credit Lender that is not a Synthetic Letter of Credit Lender immediately prior
to the Restatement Date, such Increasing Synthetic Letter of Credit Lender’s
Synthetic Letter of Credit Commitment shall be the amount set forth next to
such Increasing Synthetic Letter of Credit Lender’s name on Schedule II
hereto.  All such additional Synthetic
Letter of Credit Commitments shall constitute “Synthetic Letter of Credit
Commitments” and all Increasing Synthetic Letter of Credit Lenders shall
constitute “Synthetic Letter of Credit Lenders”, in each case for all purposes
of the Restated Credit Agreement and the other Loan Documents.  The Requisite Lenders hereby consent to the
increase in the Synthetic Letter of Credit Commitments resulting from the
additional Synthetic Letter of Credit Commitments being provided by the
Increasing Synthetic Letter of Credit Lenders hereunder.

2.             Each
Increasing Synthetic Letter of Credit Lender shall be deemed to, and hereby
agrees to, effective upon the Restatement Date, have irrevocably purchased from
each Synthetic Letter of Credit Issuing Lender a participation in each
Synthetic Letter of Credit issued by such Synthetic Letter of Credit Issuing
Lender and outstanding immediately prior to the effectiveness of the Restated
Credit Agreement and any drawings honored thereunder in an amount equal to such
Increasing Synthetic Letter of Credit Lender’s Pro Rata Share (with the
calculation thereof to be made after giving effect to the increase in the
amount of the Synthetic Letter of Credit Commitments as contemplated hereby) of
the maximum amount that is or at any time may become available to be drawn
thereunder.

3.             On
the Restatement Date, each Increasing Synthetic Letter of Credit Lender shall
deposit with Administrative Agent such Synthetic Letter of Credit Lender’s
Credit-Linked Deposit equal to the amount set forth next to such Increasing
Synthetic Letter of Credit Lender’s name on Schedule II hereto.

D.            Termination
of LC Facility.  On the Restatement
Date, (i) all LC Facility Loans and all other amounts owed under the Existing
Credit Agreement with respect to LC Facility Loans and LC Facility Commitments
shall be paid in full, (ii) each existing LC Facility Letter of Credit will be
deemed to be a Synthetic Letter of Credit issued under the Restated Credit
Agreement and (iii) the LC Facility Commitments shall be terminated in whole.

E.             Consent
and Waiver.  The Requisite Lenders
hereby consent to the Transactions and hereby waive compliance by Parent and
Borrower with the provisions of subsections 7.5, 7.7, 7.9 and 7.12 of the
Existing Credit Agreement to the extent (but only to the extent necessary) to
permit Parent and Borrower to consummate the Transactions.  The Requisite Lenders hereby further waive
compliance by the Borrower with the provisions of subsection 2.4B(iii)(c)
of the Existing Credit Agreement with respect to the IPO Proceeds.

F.             Amendments
to the Credit Agreement to Effect Repricing Amendment.  Effective as of the Repricing
Amendment Effective Date (as defined below):

1.             Subsection
1.1 of the Existing Credit Agreement is hereby amended to add the definition of
the following term in appropriate alphabetical order:

 

vi

 

“Specified Ratings Condition” means Borrower shall have
received a corporate family rating of B1 or higher from Moody’s and an
organization rating of B+ or higher from S&P, in each case with no negative
outlook (the “Specified Ratings”); provided
that the Specified Ratings Condition shall only remain satisfied for so long as
(i) neither Moody’s shall have reduced its corporate family rating, nor S&P
shall have reduced its organization rating, to a ratings category below the
Specified Ratings (a “Ratings Event”)
and (ii) neither Moody’s nor S&P shall have withdrawn or otherwise ceased
to publish its rating with respect to the Borrower (a “Ratings
Withdrawal”).

 

2.             The
definition of each of the following terms in subsection 1.1 of the Existing
Credit Agreement is hereby amended to read in its entirety as follows:

“Base Rate Margin”
means, for any day, (i) with respect to any Revolving Loan, the margin over
Base Rate used in determining the rate of interest on Base Rate Loans pursuant
to subsection 2.2A, and (ii) with respect to any U.S. Dollar Term Loan or
Synthetic Letter of Credit Loan, 1.25%; provided that, with respect to
clause (ii) above, upon the satisfaction of the Specified Ratings Condition (as
evidenced by an Officer’s Certificate of Borrower certifying such satisfaction
delivered to Administrative Agent) and for so long as the Specified Ratings
Condition shall remain satisfied, “Base Rate Margin” shall mean, for any day,
1.00%.

“LIBOR Rate Margin” means, for any day, (i) with respect to
any Revolving Loan, the margin over the Adjusted LIBOR Rate used in determining
the rate of interest on LIBOR Rate Loans pursuant to subsection 2.2A, and (ii)
with respect to any U.S. Dollar Term Loan or Synthetic Letter of Credit Loan,
2.25%; provided that, with respect to clause (ii) above, upon the satisfaction
of the Specified Ratings Condition (as evidenced by an Officer’s Certificate of
Borrower certifying such satisfaction delivered to Administrative Agent) and
for so long as the Specified Ratings Condition shall remain satisfied, “LIBOR
Rate Margin” shall mean, for any day, 2.00%.

 

3.             Subsection
2.2A of the Existing Credit Agreement is hereby amended:

(1)  by deleting “2.00%”
and substituting therefor the words “the Base Rate Margin” in clause (iii)(a)
thereof;

(2)  by deleting “3.00%”
and substituting therefor the words “the LIBOR Rate Margin” in clause (iii)(b)
thereof;

(3)  by inserting
the phrase “with respect to any Revolving Loan” immediately after the phrase “the
Base Rate Margin and the LIBOR Rate Margin” appearing in the second line of
clause (v) thereof; and

(4)  by adding a
new clause (vii) that reads as follows:

“Notwithstanding anything in this Agreement to the
contrary, the Specified Ratings Condition shall in no event be considered to be
or remain satisfied (a) after an Event of Default shall have occurred and be
continuing or (b) following the first Business Day

 

vii

after the occurrence of a Ratings Event or a Ratings
Withdrawal.  If the rating system of
Moody’s or S&P shall change, or if either such rating agency shall cease to
be in the business of providing corporate credit ratings, Borrower and the
applicable Lenders shall negotiate in good faith to amend the definition of the
term “Specified Ratings Condition” to reflect such changed rating system, or
the unavailability of ratings from such rating agency and, pending the
effectiveness of any such amendment, each of the Base Rate Margin and the LIBOR
Rate Margin with respect to any U.S. Dollar Term Loan or Synthetic Letter of
Credit Loan shall be determined without regard to whether or not the Specified
Ratings Condition shall have been satisfied.”

G.            Amendment
and Restatement of Credit Agreement to Effect the IPO Amendments.  Effective as of the Restatement
Date, the Existing Credit Agreement is hereby amended and restated in the form
of the Restated Credit Agreement (it being understood and agreed that, except
as otherwise set forth on Schedule III hereto, all schedules and exhibits to
the Existing Credit Agreement shall continue to constitute schedules and
exhibits to the Restated Credit Agreement, in the forms thereof immediately
prior to the Restatement Date).  Upon the
effectiveness of the Restated Credit Agreement, (a) each Term B Loan and Supplemental Term B Loan outstanding under the Existing
Credit Agreement immediately prior to such effectiveness shall be deemed to be
an Existing U.S. Dollar Term Loan under the Restated Credit Agreement, (b) each
Supplemental Canadian Dollar Term B Loan outstanding under the
Existing Credit Agreement immediately prior to such effectiveness shall be
deemed to be a Canadian Dollar Term Loan under the Restated
Credit Agreement and (c) each Letter of Credit outstanding under the Existing
Credit Agreement (other than a LC Facility Letter of Credit, with respect to
which the provisions of Section 4 hereof shall apply) shall be deemed to be a
Letter of Credit of the same type under the Restated Credit Agreement.

H.            Effectiveness
of Repricing Amendment and IPO Amendments.

1.             The
Repricing Amendment shall become effective as of the first date (the “Repricing Amendment Effective Date”) on which Administrative
Agent (or its counsel) shall have received (including, without limitation,
delivery via facsimile or electronic mail in accordance with the Existing
Credit Agreement) duly executed counterparts hereof that, when taken together,
bear the signatures of (A) Borrower, (B) Administrative Agent,
(C) each Credit Support Party, (D) the Requisite Lenders (as defined
in the Existing Credit Agreement), (E) each Term Lender holding a U.S.
Dollar Term Loan and (F) each Synthetic Letter of Credit Lender (in the
case of each of clauses (E) and (F), after giving effect to any prior or
concurrent assignment, whether pursuant to the mandatory assignment provisions
set forth in subsection 2.9 of the Existing Credit Agreement or otherwise).

2.             The
IPO Amendments and the amendment and restatement of the Existing Credit
Agreement effected hereby in connection therewith shall become effective as of
the first date, occurring on or prior to September 30, 2006, on which the
following conditions have been satisfied (such date, the “Restatement
Date”):

viii

 

(1)  each of the
conditions set forth in subsection 4.1 of the Restated Credit Agreement shall
have been satisfied or waived in accordance with the Restated Credit Agreement;

(2)  there shall
be no outstanding Revolving Loans, Swing Line Loans, Synthetic Letter of Credit
Loans or unreimbursed drawings under any Revolving Letter of Credit on the Restatement
Date; and

(3)  Administrative
Agent (or its counsel) shall have received (including, without limitation,
delivery via facsimile or electronic mail in accordance with the Existing
Credit Agreement) duly executed counterparts hereof that, when taken together,
bear the signatures of (A) Borrower, (B) Administrative Agent,
(C) each Credit Support Party, (D) the Requisite Lenders (as defined
in the Existing Credit Agreement), (E) each Supplemental Term Lender,
(F) each New Revolving Lender and (G) each Increasing Synthetic
Letter of Credit Lender.

I.              Representations
and Warranties.  In order to induce
Lenders to enter into this Amendment, each of Borrower and, as applicable, each
Credit Support Party represents and warrants to Administrative Agent and each
Lender that, as of the Repricing Amendment Effective Date and as of the
Restatement Date, the following statements are true, correct and complete:

1.             Corporate
Power and Authority.  Each of
Borrower and each Credit Support Party has all requisite corporate power and
authority to enter into this Amendment and, with respect to Borrower, to carry
out the transactions contemplated by the Restated Credit Agreement.

2.             Authorization
of Agreements.  The execution and
delivery of this Amendment and, with respect to Borrower, the performance of
the Restated Credit Agreement have been duly authorized by all necessary
corporate action on the part of Borrower and each Credit Support Party.

3.             No
Conflict.  The execution and delivery
by Borrower and each Credit Support Party of this Amendment and the performance
by Borrower of the Restated Credit Agreement do not and will not
(i) violate any provision of any law or any governmental rule or
regulation applicable to Parent or any of its Subsidiaries, the Organizational
Documents of Parent or any of its Subsidiaries or any order, judgment or decree
of any court or other Government Authority binding on Parent or any of its
Subsidiaries, (ii) conflict with, result in a breach of or constitute
(with due notice or lapse of time or both) a default under any Contractual
Obligation of Parent or any of its Subsidiaries, (iii) result in or
require the creation or imposition of any Lien upon any of the properties or
assets of Parent or any of its Subsidiaries (other than Liens created under any
of the Loan Documents in favor of Administrative Agent on behalf of Lenders or
as otherwise permitted under the Restated Credit Agreement), or
(iv) require any approval of stockholders or any approval or consent of
any Person under any Contractual Obligation of Parent or any of its
Subsidiaries, except for such approvals or consents which will be obtained on
or before the Restatement Date and except, in each case, to the extent such

ix

 

violation, conflict,
breach or failure to obtain such approval or consent could not reasonably be
expected to result in a Material Adverse Effect.

4.             Governmental
Consents.  The execution and delivery
by each of Borrower and each Credit Support Party of this Amendment and the
performance by Borrower of the Restated Credit Agreement do not and will not
require any Governmental Authorization, except as has been duly obtained and is
in full force and effect unless the failure to obtain such Governmental
Authorization could not reasonably be expected to have a Material Adverse
Effect.

5.             Binding
Obligation.  This Amendment has been
duly executed and delivered by Borrower and each Credit Support Party and is
the legally valid and binding obligation of each of Borrower and each Credit
Support Party, enforceable against each of Borrower and each Credit Support
Party in accordance with its terms, except as may be limited by bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium or similar laws
relating to or limiting creditors’ rights generally or by equitable principles
(whether considered in a proceeding in equity or at law) relating to
enforceability.

6.             Incorporation
of Representations and Warranties from Credit Agreement.  The representations and warranties contained
in Section 5 of the Existing Credit Agreement (with respect to the
Repricing Amendment Effective Date) or the Restated Credit Agreement (with
respect to the Restatement Date), as the case may be, are and will be true,
correct and complete in all material respects on and as of the Repricing
Amendment Effective Date or the Restatement Date, as the case may be, to the
same extent as though made on and as of such dates, except to the extent such
representations and warranties specifically relate to an earlier date, in which
case they were true, correct and complete in all material respects on and as of
such earlier date.

7.             Absence
of Default.  No event has occurred
and is continuing or will result from the consummation of the transactions
contemplated by this Amendment that would constitute an Event of Default or a
Potential Event of Default.

J.             Acknowledgement
and Consent.

1.             Parent
and each Subsidiary of Borrower (each individually a “Credit
Support Party” and collectively, the “Credit
Support Parties”) hereby acknowledges that it has read this
Amendment (including the Restated Credit Agreement) and consents to the terms
hereof and further hereby affirms, confirms and agrees that (i) notwithstanding
the effectiveness of this Amendment or the Restated Credit Agreement, the
obligations of such Credit Support Party under each of the Loan Documents to
which such Credit Support Party is a party shall not be impaired and each of
the Loan Documents to which such Credit Support Party is a party are, and shall
continue to be, in full force and

x

 

effect and are
hereby confirmed and ratified in all respects, (ii) its guaranty of all of the
Obligations and the pledge of and/or grant of a security interest in its assets
as Collateral to secure such Obligations, all as provided in the Guaranties,
the Security Agreement and the other Collateral Documents as originally
executed, and acknowledges and agrees that each such guaranty, pledge and/or
grant continues in full force and effect in respect of, and to secure, the
Obligations under the Restated Credit Agreement and the other Loan Documents,
and (iii) all the representations and warranties made by or relating to it
contained in the Restated Credit Agreement and the other Loan Documents are
true and correct in all material respects on and as of the Restatement Date
with the same effect as though made on and as of the Restatement Date, except
to the extent such representations and warranties expressly relate to an earlier
date.

2.             Parent
and each Subsidiary of Borrower acknowledges and agrees that nothing in this
Amendment, the Restated Credit Agreement or any other Loan Document shall be
deemed to require the consent of such Credit Support Party to any future
amendments to the Credit Agreement.

K.            Miscellaneous.

1.             Reference
to and Effect on the Credit Agreement and the Other Loan Documents.  On and after the Repricing Amendment
Effective Date, each reference in the Existing Credit Agreement to “this
Agreement”, “hereunder”, “hereof”, “herein” or words of like import, and each
reference to the Existing Credit Agreement in any other Loan Document, shall be
deemed a reference to the Existing Credit Agreement as amended to give effect
to the Repricing Amendment, and on and after the Restatement Date, each such
reference shall mean and be a reference to, from and after the replacement of
the terms of the Existing Credit Agreement by the terms of the Restated Credit
Agreement, the Restated Credit Agreement. 
This Amendment shall constitute a “Loan Document” for all purposes of
the Existing Credit Agreement, the Restated Credit Agreement and the other Loan
Documents.

2.             No
Novation.  Neither this Amendment nor
the effectiveness of the Restated Credit Agreement shall extinguish the obligations
for the payment of money outstanding under the Existing Credit Agreement or
discharge or release the Lien or priority of any Loan Document or any other
security therefor or any guaranty thereof. 
Nothing herein contained shall be construed as a substitution or
novation of the Obligations outstanding under the Existing Credit Agreement or
instruments guaranteeing or securing the same, which shall remain in full force
and effect, except as modified hereby or by instruments executed concurrently herewith.  Nothing expressed or implied in this
Amendment, the Restated Credit Agreement or any other document contemplated
hereby or thereby shall be construed as a release or other discharge of
Borrower under the Existing Credit Agreement or Borrower or any other Loan
Party under any other Loan Document (as defined in the Existing Credit
Agreement) from any of its obligations and liabilities thereunder.  The Existing Credit Agreement and each of the
other Loan Documents (as defined in the Existing Credit Agreement) shall remain
in full force and effect, until and except as modified hereby or thereby in
connection herewith or therewith.  This
Amendment shall constitute a Loan Document for all purposes of the Existing Credit
Agreement and the Restated Credit Agreement.

3.             Fees
and Expenses.  Borrower acknowledges
that all costs, fees and expenses as described in subsection 10.2 of the
Restated Credit Agreement incurred by Administrative Agent or its counsel
(including, without limitation, the reasonable fees, expenses and disbursements
of Cravath, Swaine & Moore LLP, counsel to Administrative Agent) with

xi

 

respect to this
Amendment, the Restated Credit Agreement and the documents and transactions
contemplated hereby shall be for the account of Borrower.  Borrower further agrees to pay to
Administrative Agent such fees in the amounts and at the times separately
agreed pursuant to the Arrangement Fee Letter dated May 31, 2006, among
Borrower, Administrative Agent, the Co-Arrangers and the other party identified
therein, with such fees to be distributed as provided therein.

4.             Headings.  Section and subsection headings in this
Amendment are included herein for convenience of reference only and shall not
constitute a part of this Amendment for any other purpose or be given any
substantive effect.

5.             Applicable
Law.  THIS
AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL
LAWS OF THE STATE OF NEW YORK (INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF
THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO
CONFLICT OF LAWS PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF ANOTHER LAW.

6.             Counterparts.  This Amendment may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which when so executed and delivered shall be deemed an original, but all
such counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and
attached to a single counterpart so that all signature pages are physically
attached to the same document.

*  *  * 
*  *

 

xii

 

IN
WITNESS WHEREOF,
the parties hereto have caused this Amendment to be duly executed and delivered
by their respective officers thereunto duly authorized as of the date first
written above.

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  BRAND
  SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CREDIT
  SUPPORT PARTIES

  
	
   

  	
  (for
  purposes of Section 10 only):

  
	
   

  	
   

  
	
   

  	
  BRAND INTERMEDIATE HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  BRAND SCAFFOLD BUILDERS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  BRAND SCAFFOLD RENTAL &

  
	
   

  	
  ERECTION,

  
	
   

  	
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

13

 

 

	
   

  	
  HIGHTOWER
  STAFFING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  BRAND
  SCAFFOLD SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  BRAND
  STAFFING SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  BRAND
  SPECIAL EVENTS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  BRAND
  SCAFFOLD ERECTORS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

14

 

 

	
   

  	
  SCAFFOLD
  BUILDING SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  SKYVIEW
  STAFFING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  BRANDCRAFT LABOR, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  SKYVIEW
  SAFETY SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  SCAFFOLD-JAX,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  MIKE BROWN-GRANDSTANDS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

15

 

 

	
   

  	
  KWIKRIG,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  LEVITATOR,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  LEVITATOR
  OF CALIFORNIA, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  BRAND
  SCAFFOLD RENTAL & ERECTION 

  
	
   

  	
  OF
  CALIFORNIA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  ALUMA
  SYSTEMS CONCRETE

  
	
   

  	
  CONSTRUCTION,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

16

 

	
   

  	
  BRAND/ALUMA
  REAL ESTATE HOLDING,

  
	
   

  	
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  ALUMA
  SYSTEMS CONCRETE

  
	
   

  	
  CONSTRUCTION
  OF CALIFORNIA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  BRAND
  SPECIAL SERVICES GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

17

 

 

	
   

  	
   

  	
  ADMINISTRATIVE
  AGENT:

  
	
   

  	
   

  	
   

  
	
   

  	
  CREDIT
  SUISSE, CAYMAN

  
	
   

  	
  ISLANDS
  BRANCH,
  individually and as

  
	
   

  	
  Administrative
  Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

18

 

 

	
  Name of
  Institution:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

19

EXHIBIT A TO

BRAND SERVICES INC.

AMENDMENT AGREEMENT

DATED AS OF JUNE 8, 2006

 

SECOND
AMENDED AND RESTATED CREDIT AGREEMENT

dated
as of July 29, 2005,

as
amended as of June
8, 2006,

and
as further amended and restated as of [•], 2006(1)

AMONG

BRAND
SERVICES, INC.,

as
Borrower,

THE
LENDERS LISTED HEREIN,

as Lenders,

AND

CREDIT SUISSE,

as Administrative Agent

 

JPMORGAN
CHASE BANK, N.A.,

as
Syndication Agent,

ANTARES
CAPITAL CORPORATION,

GENERAL
ELECTRIC CAPITAL CORPORATION,

and

CALYON NEW YORK BRANCH,

as
Co-Documentation Agents,

AND

CREDIT
SUISSE SECURITIES (USA) LLC

and

J.P. MORGAN SECURITIES INC.,

as
Co-Arrangers

 

(1)Effective date of IPO Amendments (as defined in the Amendment
Agreement) to be inserted.

 

 

TABLE OF CONTENTS

	
   

  	
   

  	
   

  	
  Page No.

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.

  	
  DEFINITIONS

  	
  3

  
	
   

  	
  1.1

  	
  Certain Defined Terms.

  	
  3

  
	
   

  	
  1.2

  	
  Accounting Terms; Utilization of GAAP for Purposes
  of Calculations Under Agreement.

  	
  37

  
	
   

  	
  1.3

  	
  Other Definitional Provisions and Rules of
  Construction.

  	
  37

  
	
  SECTION 2.

  	
  AMOUNTS AND TERMS OF COMMITMENTS AND LOANS

  	
  38

  
	
   

  	
  2.1

  	
  Commitments; Making of Loans; the Register;
  Notes; Bankers’ Acceptances.

  	
  38

  
	
   

  	
  2.2

  	
  Interest on the Loans.

  	
  47

  
	
   

  	
  2.3

  	
  Fees.

  	
  52

  
	
   

  	
  2.4

  	
  Repayments, Prepayments and Reductions in
  Revolving Loan Commitments; General Provisions Regarding Payments;
  Application of Proceeds of Collateral and Payments Under Guaranties.

  	
  53

  
	
   

  	
  2.5

  	
  Use of Proceeds.

  	
  63

  
	
   

  	
  2.6

  	
  Special Provisions Governing LIBOR Rate Loans
  and BA Loans.

  	
  64

  
	
   

  	
  2.7

  	
  Increased Costs; Taxes; Capital Adequacy.

  	
  66

  
	
   

  	
  2.8

  	
  Statement of Lenders; Obligation of Lenders and
  Issuing Lenders to Mitigate.

  	
  71

  
	
   

  	
  2.9

  	
  Replacement of a Lender.

  	
  71

  
	
   

  	
  2.10

  	
  Incremental Term Loans.

  	
  73

  
	
  SECTION 3.

  	
  LETTERS OF CREDIT

  	
  74

  
	
   

  	
  3.1

  	
  Issuance of Letters of Credit and Lenders’
  Purchase of Participations Therein.

  	
  74

  
	
   

  	
  3.2

  	
  Letter of Credit Fees.

  	
  79

  
	
   

  	
  3.3

  	
  Drawings and Reimbursement of Amounts Paid Under
  Letters of Credit.

  	
  79

  
	
   

  	
  3.4

  	
  Obligations Absolute.

  	
  85

  
	
   

  	
  3.5

  	
  Nature of Issuing Lenders’ Duties.

  	
  86

  
	
   

  	
  3.6

  	
  Credit-Linked Deposits.

  	
  87

  

 

 

 

	
  SECTION 4.

  	
  CONDITIONS TO LOANS AND LETTERS OF CREDIT

  	
  89

  
	
   

  	
  4.1

  	
  Conditions to Supplemental Term Loans.

  	
  89

  
	
   

  	
  4.2

  	
  Conditions to All Loans.

  	
  92

  
	
   

  	
  4.3

  	
  Conditions to Letters of Credit.

  	
  93

  
	
  SECTION 5.

  	
  BORROWER’S REPRESENTATIONS AND WARRANTIES

  	
  93

  
	
   

  	
  5.1

  	
  Organization, Powers, Qualification, Good
  Standing, Business and Subsidiaries.

  	
  93

  
	
   

  	
  5.2

  	
  Authorization of Borrowing, etc.

  	
  94

  
	
   

  	
  5.3

  	
  Financial Condition.

  	
  95

  
	
   

  	
  5.4

  	
  No Material Adverse Change.

  	
  96

  
	
   

  	
  5.5

  	
  Title to Properties; Liens; Real Property;
  Intellectual Property.

  	
  96

  
	
   

  	
  5.6

  	
  Litigation; Adverse Facts.

  	
  97

  
	
   

  	
  5.7

  	
  Payment of Taxes.

  	
  97

  
	
   

  	
  5.8

  	
  Performance of Agreements; Material Contracts.

  	
  97

  
	
   

  	
  5.9

  	
  Governmental Regulation.

  	
  98

  
	
   

  	
  5.10

  	
  Securities Activities.

  	
  98

  
	
   

  	
  5.11

  	
  Employee Benefit Plans.

  	
  98

  
	
   

  	
  5.12

  	
  Certain Fees.

  	
  99

  
	
   

  	
  5.13

  	
  Environmental Protection.

  	
  99

  
	
   

  	
  5.14

  	
  Employee Matters.

  	
  100

  
	
   

  	
  5.15

  	
  Solvency.

  	
  100

  
	
   

  	
  5.16

  	
  Matters Relating to Collateral.

  	
  100

  
	
   

  	
  5.17

  	
  Disclosure.

  	
  101

  
	
   

  	
  5.18

  	
  Subordinated Indebtedness.

  	
  102

  
	
   

  	
  5.19

  	
  Leasehold Property.

  	
  102

  
	
  SECTION 6.

  	
  BORROWER’S AFFIRMATIVE COVENANTS

  	
  102

  
	
   

  	
  6.1

  	
  Financial Statements and Other Reports.

  	
  102

  
	
   

  	
  6.2

  	
  Corporate Existence, etc.

  	
  107

  
	
   

  	
  6.3

  	
  Payment of Taxes and Claims; Tax Consolidation.

  	
  107

  
	
   

  	
  6.4

  	
  Maintenance of Properties; Insurance;
  Application of Net Insurance/Condemnation Proceeds.

  	
  108

  
	
   

  	
  6.5

  	
  Inspection Rights; Lender Meeting.

  	
  110

  

 

ii

 

 

	
   

  	
  6.6

  	
  Compliance with Laws, etc.

  	
  110

  
	
   

  	
  6.7

  	
  Environmental Matters.

  	
  110

  
	
   

  	
  6.8

  	
  Execution of Subsidiary Guaranty and Personal
  Property Collateral Documents After the Restatement Date.

  	
  112

  
	
   

  	
  6.9

  	
  Matters Relating to Additional Real Property
  Collateral.

  	
  113

  
	
  SECTION 7.

  	
  BORROWER’S NEGATIVE COVENANTS

  	
  114

  
	
   

  	
  7.1

  	
  Indebtedness.

  	
  114

  
	
   

  	
  7.2

  	
  Liens and Related Matters.

  	
  116

  
	
   

  	
  7.3

  	
  Investments; Acquisitions.

  	
  118

  
	
   

  	
  7.4

  	
  Contingent Obligations.

  	
  120

  
	
   

  	
  7.5

  	
  Restricted Junior Payments.

  	
  121

  
	
   

  	
  7.6

  	
  Financial Covenants.

  	
  122

  
	
   

  	
  7.7

  	
  Restriction on Fundamental Changes; Asset Sales.

  	
  122

  
	
   

  	
  7.8

  	
  Capital Expenditures.

  	
  124

  
	
   

  	
  7.9

  	
  Transactions with Shareholders and Affiliates.

  	
  125

  
	
   

  	
  7.10

  	
  Limitations on Sales and Lease-Backs.

  	
  126

  
	
   

  	
  7.11

  	
  Conduct of Business.

  	
  126

  
	
   

  	
  7.12

  	
  Amendments or Waivers of Certain Agreements;
  Amendments of Documents Relating to Indebtedness.

  	
  126

  
	
   

  	
  7.13

  	
  Fiscal Year.

  	
  127

  
	
  SECTION 8.

  	
  EVENTS OF DEFAULT

  	
  127

  
	
   

  	
  8.1

  	
  Failure to Make Payments When Due.

  	
  127

  
	
   

  	
  8.2

  	
  Default in Other Agreements.

  	
  127

  
	
   

  	
  8.3

  	
  Breach of Certain Covenants.

  	
  128

  
	
   

  	
  8.4

  	
  Breach of Warranty.

  	
  128

  
	
   

  	
  8.5

  	
  Other Defaults Under Loan Documents.

  	
  128

  
	
   

  	
  8.6

  	
  Involuntary Bankruptcy; Appointment of Receiver,
  etc.

  	
  128

  
	
   

  	
  8.7

  	
  Voluntary Bankruptcy; Appointment of Receiver,
  etc.

  	
  129

  
	
   

  	
  8.8

  	
  Judgments and Attachments.

  	
  129

  
	
   

  	
  8.9

  	
  Dissolution.

  	
  129

  
	
   

  	
  8.10

  	
  Employee Benefit Plans.

  	
  129

  
	
   

  	
  8.11

  	
  Change in Control.

  	
  129

  

 

 

iii

 

	
   

  	
  8.12

  	
  Invalidity of Loan Documents; Failure of
  Security; Repudiation of Obligations.

  	
  130

  
	
  SECTION 9.

  	
  ADMINISTRATIVE AGENT

  	
  131

  
	
   

  	
  9.1

  	
  Appointment.

  	
  131

  
	
   

  	
  9.2

  	
  Powers and Duties; General Immunity.

  	
  132

  
	
   

  	
  9.3

  	
  Independent Investigation by Lenders; No
  Responsibility For Appraisal of Creditworthiness.

  	
  133

  
	
   

  	
  9.4

  	
  Right to Indemnity.

  	
  134

  
	
   

  	
  9.5

  	
  Successor Administrative Agent and Swing Line
  Lender.

  	
  134

  
	
   

  	
  9.6

  	
  Collateral Documents and Guaranties.

  	
  135

  
	
   

  	
  9.7

  	
  Duties of Other Agents.

  	
  135

  
	
   

  	
  9.8

  	
  Administrative Agent May File Proofs of Claim.

  	
  136

  
	
  SECTION 10.

  	
  MISCELLANEOUS

  	
  136

  
	
   

  	
  10.1

  	
  Successors and Assigns; Assignments and
  Participations in Loans and Letters of Credit.

  	
  136

  
	
   

  	
  10.2

  	
  Expenses.

  	
  142

  
	
   

  	
  10.3

  	
  Indemnity.

  	
  142

  
	
   

  	
  10.4

  	
  Set-Off; Security Interest in Deposit Accounts.

  	
  143

  
	
   

  	
  10.5

  	
  Ratable Sharing.

  	
  144

  
	
   

  	
  10.6

  	
  Amendments and Waivers.

  	
  145

  
	
   

  	
  10.7

  	
  Independence of Covenants.

  	
  146

  
	
   

  	
  10.8

  	
  Notices; Effectiveness of Signatures.

  	
  146

  
	
   

  	
  10.9

  	
  Survival of Representations, Warranties and
  Agreements.

  	
  147

  
	
   

  	
  10.10

  	
  Failure or Indulgence Not Waiver; Remedies
  Cumulative.

  	
  147

  
	
   

  	
  10.11

  	
  Marshalling; Payments Set Aside.

  	
  147

  
	
   

  	
  10.12

  	
  Severability.

  	
  148

  
	
   

  	
  10.13

  	
  Obligations Several; Independent Nature of
  Lenders’ Rights; Damage Waiver.

  	
  148

  
	
   

  	
  10.14

  	
  Release of Security Interest or Guaranty.

  	
  148

  
	
   

  	
  10.15

  	
  Applicable Law.

  	
  149

  
	
   

  	
  10.16

  	
  Construction of Agreement; Nature of
  Relationship.

  	
  149

  
	
   

  	
  10.17

  	
  Consent to Jurisdiction and Service of Process.

  	
  149

  

 

 

iv

 

	
   

  	
  10.18

  	
  Waiver of Jury Trial.

  	
  150

  
	
   

  	
  10.19

  	
  Confidentiality.

  	
  150

  
	
   

  	
  10.20

  	
  Counterparts; Effectiveness.

  	
  151

  

 

 

v

 

EXHIBITS

 

	
  I

  	
   

  	
  FORM OF NOTICE OF
  BORROWING

  
	
  II

  	
   

  	
  FORM OF NOTICE OF
  CONVERSION/CONTINUATION

  
	
  III

  	
   

  	
  FORM OF REQUEST FOR
  ISSUANCE

  
	
  IV

  	
   

  	
  FORM OF TERM NOTE

  
	
  V

  	
   

  	
  FORM OF REVOLVING NOTE

  
	
  VI

  	
   

  	
  FORM OF SWING LINE NOTE

  
	
  VII

  	
   

  	
  FORM OF SYNTHETIC LETTER
  OF CREDIT NOTE

  
	
  VIII

  	
   

  	
  FORM OF COMPLIANCE
  CERTIFICATE

  
	
  IX

  	
   

  	
  FORM OF ASSIGNMENT
  AGREEMENT

  
	
  X

  	
   

  	
  FORM OF FINANCIAL
  CONDITION CERTIFICATE

  
	
  XI

  	
   

  	
  SUBSIDIARY GUARANTY

  
	
  XII

  	
   

  	
  SECURITY AGREEMENT

  
	
  XIII

  	
   

  	
  PARENT GUARANTY

  
	
  XIV

  	
   

  	
  FORM OF COLLATERAL ACCESS
  AGREEMENT

  

 

vi

 

SCHEDULES

 

	
  2.1

  	
   

  	
  LENDERS’ COMMITMENTS AND PRO RATA SHARES

  
	
  4.1D

  	
   

  	
  LOCAL COUNSEL

  
	
  5.1

  	
   

  	
  SUBSIDIARIES OF BORROWER

  
	
  5.5B

  	
   

  	
  REAL PROPERTY

  
	
  5.5C

  	
   

  	
  INTELLECTUAL PROPERTY

  
	
  5.6

  	
   

  	
  LITIGATION

  
	
  5.7

  	
   

  	
  TAXES

  
	
  5.8

  	
   

  	
  MATERIAL CONTRACTS

  
	
  5.11

  	
   

  	
  CERTAIN EMPLOYEE BENEFIT PLANS

  
	
  5.13

  	
   

  	
  ENVIRONMENTAL MATTERS

  
	
  7.1

  	
   

  	
  CERTAIN EXISTING INDEBTEDNESS

  
	
  7.2

  	
   

  	
  CERTAIN EXISTING LIENS

  
	
  7.3

  	
   

  	
  CERTAIN EXISTING INVESTMENTS

  
	
  7.4

  	
   

  	
  CERTAIN CONTINGENT OBLIGATIONS

  

 

vii

BRAND SERVICES, INC.

This SECOND
AMENDED AND RESTATED CREDIT AGREEMENT
is dated as of [·], 2006,(2) and entered into by and among
BRAND SERVICES, INC., a Delaware corporation (“Borrower”), THE FINANCIAL INSTITUTIONS
FROM TIME TO TIME PARTY HERETO (each individually referred to herein
as a “Lender” and collectively as “Lenders”) and CREDIT SUISSE (formerly
known as Credit Suisse First Boston, acting through its Cayman Islands Branch) (“Credit Suisse”), as administrative agent for
Lenders (in such capacity, “Administrative Agent”).

(2)  Effective date of IPO Amendments (as defined in the
Amendment Agreement) to be inserted.

PRELIMINARY STATEMENTS

A.            Borrower, Administrative Agent and
the lenders party thereto previously entered into the Amended and Restated Credit
Agreement dated as of July 29, 2005 (the “Existing
Credit Agreement”), under which the lenders party thereto extended,
and agreed to extend, credit to Borrower in the form of (i) U.S. Dollar term loans in an
aggregate principal amount of $258,000,000 (of which approximately $228,366,326
aggregate principal amount (the “Existing U.S. Dollar Term
Loans”) is outstanding immediately prior to the Restatement Date
(such term and each other capitalized term used but not defined in these
preliminary statements having the meaning given it in subsection 1.1)),
(ii) Canadian Dollar terms loans in an aggregate principal amount of the
Canadian Dollar Equivalent of $57,000,000 (of which approximately C$69,798,600
aggregate principal amount (the “Canadian Dollar Term Loans”)
is outstanding immediately prior to the Restatement Date), (iii) revolving
loans at any time and from time to time prior to the Revolving Loan Commitment
Termination Date (as defined in the Existing Credit Agreement), in an aggregate
principal amount at any time outstanding not in excess of $50,000,000 under a
revolving credit facility (the “Existing Revolving Credit
Facility”), (iv) Swing Line Loans at any time and from time to
time prior to the Revolving Loan Commitment Termination Date, in an aggregate
principal amount at any time outstanding not in excess of $15,000,000,
(v) LC Facility Letters of Credit in an aggregate face amount not in
excess of $20,000,000 under a letter of credit facility (the “LC Facility”) and (vi) Synthetic Letters of Credit in
an aggregate face amount not in excess of $15,000,000.

B.            Borrower has informed Administrative Agent that Parent
intends to effect an initial public offering pursuant to which it will offer
and sell shares of Parent’s common stock in an underwritten offering registered
with the Securities and Exchange Commission (the “IPO”)
and will raise approximately $250,000,000 of gross cash proceeds therefrom (the
“IPO Proceeds”).

C.            In connection with the foregoing, (a) Borrower has
requested that Lenders extend credit in the form of senior secured term loans (“Supplemental Term Loans”) to

 

 

Borrower on the
Restatement Date in an aggregate principal amount of $100,000,000, subject to
the terms and conditions set forth herein and in the Amendment Agreement, the
proceeds of which will be used by Borrower (or, to the extent any such proceeds
are dividended or distributed to Parent by Borrower, by Parent), together with
the IPO Proceeds (to the extent any IPO Proceeds are contributed by Parent to
Borrower), solely (i) to finance (1) the Senior Subordinated Notes
Repurchase, (2) the Parent Junior Subordinated Notes Purchase,
(3) the Sponsor Preferred Stock Redemption and (4) the Parent Common Stock
Repurchase (each as defined below), (ii) to pay the Prepayment Penalties
(as defined below) and (iii) to pay the Transaction Costs (as defined
below), (b) Borrower will offer to purchase (the “Senior
Subordinated Notes Tender Offer”) all of its issued and outstanding
Senior Subordinated Notes and will concurrently solicit consents from the
holders thereof (the “Senior Subordinated Notes
Consent Solicitation”) to amend the Senior Subordinated Note
Indenture to eliminate substantially all of the restrictive covenants and
eliminate or modify certain event of default and related provisions contained
therein, (c) Borrower will, with the proceeds of the Supplemental Term Loans
(and/or any portion of the IPO Proceeds contributed to Borrower by Parent),
purchase all of the Senior Subordinated Notes validly tendered and not withdrawn
in connection with the Senior Subordinated Notes Tender Offer (the “Senior Subordinated Notes Repurchase”), (d) Parent will,
with the IPO Proceeds (and/or any portion of the proceeds of the Supplemental
Term Loans dividended or distributed to Parent by Borrower), (i) repurchase all
issued and outstanding Parent Junior Subordinated Notes (as defined in the
Existing Credit Agreement) (the “Parent Junior Subordinated
Notes Repurchase”), (ii) redeem all of its outstanding shares of
Sponsor Preferred Stock (as defined in the Existing Credit Agreement) and pay
all accrued and unpaid dividends thereon (the “Sponsor
Preferred Stock Redemption”) and (iii) repurchase up to $35,000,000
of Parent common stock issued to Holdings’ class A unit holders in connection
with the liquidation of Holdings (“Parent Common Stock
Repurchase”), (e) Parent and Borrower will pay prepayment
penalties or tender premiums (collectively, the “Prepayment
Penalties”) in connection with the Senior Subordinated Notes
Repurchase, the Parent Junior Subordinated Notes Repurchase and the Sponsor
Preferred Stock Redemption and (f) fees and expenses incurred in
connection with the foregoing (the “Transaction Costs”)
will be paid (such transactions described in clauses (a) through (f)
above, together with the execution, delivery and performance by the Loan
Parties of the Loan Documents to which they are a party and the making of the
borrowings hereunder, collectively, the “Transactions”).

D.            Borrower and Lenders desire to amend and
restate the Existing Credit Agreement in the form hereof to (a) set forth the
terms and conditions under which Lenders will make the Supplemental Term Loans,
(b) reflect certain amendments effectuated pursuant to the Amendment Agreement,
including (i) the termination of the commitments with respect to the
Existing Revolving Credit Facility and the establishment of new commitments to
make Revolving Loans in an aggregate principal amount of up to $75,000,000,
(ii) the increase in Synthetic Letter of Credit Commitments from $15,000,000 to
$35,000,000, (iii) the termination of the LC Facility and (iv) the
reduction in interest rate margins applicable to the Existing U.S. Dollar Term
Loans (which reduced margins shall also apply to the Supplemental Term Loans)
and the Synthetic Letter of Credit Loans (and the interest rate margin
component of the letter of credit facility fee in respect of the Synthetic
Letters of Credit) and (c) make certain other amendments thereto.

2

E.             Lenders are willing to extend such credit
to Borrower on the terms and subject to the conditions set forth herein and in
the Amendment Agreement.

F.             The amendment and restatement of this
Agreement shall become effective as provided in the Amendment Agreement.

Accordingly,
the parties hereto
agree as follows:

Section
1.              DEFINITIONS

1.1                               Certain Defined Terms.

The following terms used
in this Agreement shall have the following meanings:

“Additional
Mortgaged Property” has the meaning assigned to that term in
subsection 6.9.

“Additional Mortgages” has the meaning assigned to that term in
subsection 6.9.

“Additional Costs” means, for any period,
solely to the extent deducted in determining Net Income for such period,
(i) Transaction Costs for such period (and, to the extent relevant for any
period, Transaction Costs (as defined in the Existing Credit Agreement) for
such period); and (ii) Severance Costs for such period.

“Adjusted
LIBOR Rate” means, for any Interest Rate Determination Date with
respect to an Interest Period for a LIBOR Rate Loan, the rate per annum
obtained by dividing (i) the rate per annum determined by Administrative
Agent at approximately 11:00 A.M. (London time) on the date that is two
Business Days prior to the commencement of such Interest Period by reference to
the British Bankers’ Association Interest Settlement Rates for deposits in
Dollars (as set forth by any service selected by Administrative Agent that has
been nominated by the British Bankers’ Association as an authorized information
vendor for the purpose of displaying such rates) for a period equal to such
Interest Period (to the extent that an interest rate is not ascertainable
pursuant to the foregoing clause (i) of this definition, such rate per annum
shall be the interest rate per annum determined by Administrative Agent to be
the average of the rates per annum at which deposits in Dollars are offered for
such relevant Interest Period to major banks in the London interbank market in
London, England by Administrative Agent at approximately 11:00 A.M. (London
time) on the date that is two Business Days prior to the beginning of such
Interest Period) by (ii) a percentage equal to 100% minus the stated
maximum rate of all reserve requirements (including any marginal, emergency,
supplemental, special or other reserves) applicable on such Interest Rate
Determination Date to any member bank of the Federal Reserve System in respect
of “Eurocurrency Liabilities” as defined in Regulation D (or any successor
category of liabilities under Regulation D).

“Administrative
Agent” has the meaning assigned to that term in the preamble to this
Agreement and also means and includes any successor Administrative Agent
appointed pursuant to subsection 9.5A.

 

3

“Affected
Lender” has the meaning assigned to that term in
subsection 2.6C.

“Affected
Loans” has the meaning assigned to that term in
subsection 2.6C.

“Affiliate”,
as applied to any Person, means any other Person directly or indirectly
controlling, controlled by, or under common control with, that Person. For the
purposes of this definition, “control” (including, with correlative meanings,
the terms “controlling”, “controlled by” and “under common control with”), as
applied to any Person, means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of that
Person, whether through the ownership of voting securities or by contract or
otherwise.

“Agents”
means Administrative Agent, Syndication Agent, Co-Arrangers, and Co-Documentation Agents.

“Agreement”
means this Amended and Restated Credit Agreement dated as of [·],
2006(3), as it may be amended, restated, supplemented or otherwise modified
from time to time in accordance with the terms hereof.

(3)  Effective date of IPO Amendments (as defined in the
Amendment Agreement) to be inserted.

 

“Aluma Acquisition” means the acquisition by Borrower of
substantially all the assets and assumption of certain of the liabilities of
Aluma Enterprises, Inc., which was consummated on or about July 29, 2005.

“Amendment
Agreement” means the Amendment Agreement dated as of June 8, 2006,
effecting, among other things, the matters referred to in paragraph D of
the preliminary statements to this Agreement and the amendment and restatement
of the Existing Credit Agreement.

“Applicable Leverage Ratio” means the
Leverage Ratio calculated as of the date for which a Pricing Certificate has
been delivered pursuant to subsection 6.1(iv) and such Applicable Leverage
Ratio shall remain in effect as set forth in subsections 2.4B(iii)(c) and
2.4B(iii)(e).

“Applicable
Stamping Fee” means, with respect to each accepted or advanced BA
Loan by a Canadian Dollar Term Lender on any date, 3.25%.

“Approved
Fund” means a Fund that is administered or managed by (i) a
Lender, (ii) an Affiliate of a Lender or (iii) an entity or an
Affiliate of an entity that administers or manages a Lender.

“Asset Sale”
means the sale by Parent or any of
its Subsidiaries to any Person other than Borrower or any of its wholly-owned
Subsidiaries of (i) any of the stock of any of Parent’s Subsidiaries,
(ii) substantially all of the assets of any division or line of business
of Borrower or any of its Subsidiaries, or (iii) any other assets (whether
tangible or intangible) of Borrower or any of its Subsidiaries (other than
(a) inventory sold in the ordinary course of

 

4

business,
(b) equipment sold to customers of Borrower and its Subsidiaries in the
ordinary course of business consistent with past business practices,
(c) obsolete or worn out equipment in an aggregate principal amount not to
exceed $20,000,000 in any Fiscal Year, (d) sales, assignments, transfers
or dispositions of accounts in the ordinary course of business for purposes of
collection and (e) any such other assets to the extent that the aggregate
value of such assets sold in any single transaction or related series of
transactions is equal to $500,000 or less).

“Assignment
Agreement” means an Assignment Agreement in substantially the form
of Exhibit IX annexed hereto.

“Available
Excess Cash Flow Amount” means, on any
date of determination, an amount equal to (i) the cumulative amount of
Excess Cash Flow for each Fiscal Year (commencing with Fiscal Year 2006), and
ending prior to the date of determination, minus (ii) the sum at
the time of determination of (a) the aggregate amount of prepayments of
Loans required to be made pursuant to subsection 2.4B(iii)(e) through the date
of determination (it being understood that, for purposes of this definition,
Excess Cash Flow for any Fiscal Year shall not be included until after any such
prepayment shall have been made) and (b) the aggregate amount of
Investments made since the Restatement Date through the date of determination
pursuant to clause (b) of subsection 7.3(vii).

“BA Discount
Proceeds” means, with respect to any BA Loan, an amount calculated
on the date of acceptance and purchase or advance of such BA Loan by
multiplying (a) the face or principal amount of such BA Loan by (b) the
quotient of one divided by the sum of one plus the product of (i) the BA
Discount Rate applicable to such BA Loan multiplied by (ii) a fraction, the
numerator of which is the term of such BA Loan measured in days (commencing on
the date of acceptance and purchase or advance and ending on, but excluding,
the maturity date thereof) and the denominator of which is 365; with such
quotient being rounded up or down to the nearest fifth decimal place, with
..000005 being rounded up.

“BA Discount
Rate” means (i) with respect to an issue of Bankers’ Acceptances to
be accepted by a Schedule I Lender, the CDOR Rate at or about 10:00 a.m.
(Toronto time) on the date of issuance and acceptance of such Bankers’
Acceptances for bankers’ acceptances having a comparable face value and an
identical maturity date to the face value and maturity date of such Bankers’
Acceptances, and (ii) with respect to an issue of Bankers’ Acceptances or a BA
Equivalent Loan to be accepted or advanced by any other Canadian Dollar Term
Lender, the rate established pursuant to clause (i) above plus 0.10% per annum.

“BA
Equivalent Loans” means, in relation to a Loan by way of BA Loans,
an advance in Canadian Dollars made by a Non-Acceptance Lender pursuant to
Section 2.1F(ix).

“BA Loans”
means the acceptance and purchase of Bankers’ Acceptances and BA Equivalent
Loans; provided that reference to the amount or principal amount of a BA
Loan shall mean the full face amount of the applicable Bankers’ Acceptances or
Discount Notes issued in connection therewith.

5

“Bankers’
Acceptance” means a Draft denominated in Canadian Dollars drawn by
Borrower and accepted and purchased by a Canadian Dollar Term Lender as
provided in Section 2.1F and includes a depository bill issued in accordance
with the Depository Bills and Notes Act (Canada).

“Bankruptcy Code”
means Title 11 of the United States Code entitled “Bankruptcy”, as now and
hereafter in effect, or any successor statute.

“Base Rate”
means, at any time, the higher of (i) the Prime Rate or (ii) the rate
which is 1⁄2 of 1% in excess of the Federal Funds Effective Rate.  Any change in the Base Rate due to a change
in the Prime Rate or the Federal Funds Effective Rate shall be effective on the
effective date of such change.

“Base Rate
Loans” means Loans bearing interest at rates determined by reference
to the Base Rate as provided in subsection 2.2A.

“Base Rate
Margin” means, for any day, 1.25%; provided that upon the
satisfaction of the Specified Ratings Condition (as evidenced by an Officer’s
Certificate of Borrower certifying such satisfaction delivered to
Administrative Agent) and for so long as the Specified Ratings Condition shall
remain satisfied, “Base Rate Margin” shall mean, for any day, 1.00%.

“Borrower” has the meaning assigned to that
term in the preamble to this Agreement.

“Borrower Certificate of Incorporation”
means the Certificate of Incorporation of Borrower, in the form delivered to
Administrative Agent and Lenders prior to the execution of the Amendment
Agreement and as such Certificate of Incorporation may be further amended from
time to time thereafter to the extent permitted under subsection 7.12.

“Business Day”
means (i) for all purposes other than as covered by clause (ii)
below, any day excluding Saturday, Sunday and any day which is a legal holiday
under the laws of the State of New York or Toronto, Canada, or is a day on
which banking institutions located in such state are authorized or required by
law or other governmental action to close, and (ii) with respect to all
notices, determinations, fundings and payments in connection with the Adjusted
LIBOR Rate or any LIBOR Rate Loans, any day that is a Business Day described in
clause (i) above and that is also a day for trading by and between
banks in Dollar deposits in the London interbank market.

“Canadian
Dollar Equivalent” means, on any date of determination, with respect
to any amount in Dollars, the equivalent in Canadian Dollars of such amount as
determined by Administrative Agent using the Exchange Rate then in effect.

“Canadian
Dollar Term Lender” means any Lender with an outstanding Canadian
Dollar Term Loan.

6

“Canadian Dollar Term Loan
Exposure”, with
respect to any Lender, means, as of any date of determination, the outstanding
principal amount of the Canadian Dollar Term Loan of that Lender.

“Canadian
Dollar Term Loans” has the meaning assigned to that term in the
preliminary statements to this Agreement.

“Canadian Dollars”
and “C$” shall mean the lawful money of
Canada.

“Canadian
Prime Rate” means the higher of (a) the rate of interest per annum
determined from time to time by Administrative Agent (in consultation with its
Toronto branch) as being its Toronto branch’s reference rate then in effect for
determining interest rates on Canadian Dollar denominated commercial loans made
in Canada, and (b) the one-month CDOR Rate plus 0.75% per annum.

“Canadian
Prime Rate Loan” shall mean any Canadian Dollar Term Loan bearing
interest at a rate determined by reference to the Canadian Prime Rate.

“CapEx
Pull-Forward Amount” has the meaning assigned to that term in
subsection 7.8(i).

“Capital
Expenditures” means, for any period, the sum of the aggregate of all
expenditures (whether paid in cash or other consideration or accrued as a
liability and including that portion of Capital Leases which is capitalized on
the consolidated balance sheet of Borrower and its Subsidiaries) by Borrower
and its Subsidiaries during that period that, in conformity with GAAP, are
included in “additions to property, plant or equipment” or comparable items
reflected in the consolidated statement of cash flows of Borrower and its
Subsidiaries.  For purposes of this
definition, the purchase price of equipment that is purchased simultaneously
with the trade-in of existing equipment or with insurance proceeds shall be
included in Capital Expenditures only to the extent of the gross amount of such
purchase price less the credit granted by the seller of such equipment for the
equipment being traded in at such time or the amount of such proceeds, as the
case may be; provided, that Capital Expenditures shall not include
Investments made under subsection 7.3(xi).

“Capital
Lease”, as applied to any Person, means any lease of any property
(whether real, personal or mixed) by that Person as lessee that, in conformity
with GAAP, is accounted for as a capital lease on the balance sheet of that
Person.

“Capital
Stock” means the capital stock or other equity interests of a
Person.

“Cash”
means money, currency or a credit balance in a Deposit Account.

“Cash
Equivalents” means, as at any date of determination,
(i) marketable securities (a) issued or directly and unconditionally
guaranteed as to interest and principal by the United States Government or
(b) issued by any agency of the United States the obligations of which are
backed by the full faith and credit of the United States, in each case maturing
within

7

one year after such
date; (ii) marketable direct obligations issued by any state of the United
States of America or any political subdivision of any such state or any public
instrumentality thereof, in each case maturing within one year after such date
and having, at the time of the acquisition thereof, the highest rating
obtainable from either Standard & Poor’s (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”); (iii) commercial paper
maturing no more than nine months from the date of creation thereof, which is
issued by (A) a corporation (other than any Loan Party) organized under the
laws of the United States of America or any state thereof or the District of
Columbia and having, at the time of the acquisition thereof, a rating of at
least A-1 from S&P or at least P-1 from Moody’s or (B) any
Lender (or its holding company); (iv) time deposits, certificates of
deposit or bankers’ acceptances maturing within one year after such date and
issued or accepted by any Lender or by any commercial bank organized under the
laws of the United States of America or any state thereof or the District of
Columbia that (a) is at least “adequately capitalized” (as defined in the
regulations of its primary Federal banking regulator) and (b) has
Tier 1 capital (as defined in such regulations) of not less than
$500,000,000; (v) shares of any money market mutual fund that (a) has
at least 95% of its assets invested continuously in the types of investments
referred to in clauses (i) through (iii) above, (b) has net assets of
not less than $1,000,000,000, and (c) has the highest rating obtainable
from either S&P or Moody’s; (vi) short-term tax-exempt securities rated not
lower than MIG-1/1+ by either Moody’s or S&P with provisions for liquidity
or maturity accommodations of 183 days or less, (vii) investments in
so-called “auction rate securities” rated AAA or higher by S&P or Aaa or
higher by Moody’s and which have a reset date not more than 90 days from
the acquisition thereof and (viii) any interest bearing account in Canadian
dollars maintained with a Schedule A Bank in Canada.

“Cash
Interest Expense” means, for any period, Interest Expense for such
period excluding, however, any interest expense not payable in Cash (including
amortization of discount and amortization of debt issuance costs).

“CDOR Rate”
means, as of any day with respect to a BA Loan and the Interest Period selected
by Borrower for such BA Loan, or otherwise as applicable, the per annum
interest rate equal to (i) the average of the annual rates for Canadian Dollar
bankers acceptances for a term equal to such Interest Period (or a term as
closely possible comparable to such Interest Period) or such other specified
period quoted (at approximately 10:00 a.m. (Toronto time) on such day) on the
Reuters Monitor Money Rates Service, CDOR page “Canadian Interbank Bid BA Rates”,
and (ii) if such rate is not available on such day, the rate for such date will
be the annual discount rate (rounded upward to the nearest whole multiple of
1/100 of 1%) as of 10:00 a.m. (Toronto time) on such day at which
Administrative Agent’s Toronto branch is then offering to purchase Canadian
Dollar bankers acceptances for a term approximately equal to such Interest
Period (or a term as closely possible comparable to such Interest Period), or
such other specified period, accepted by it.

“Change in
Control” means any of the following: 
(i) any Person acting in concert with one or more other Persons
(other than the Sponsor and its Affiliates) shall have acquired beneficial
ownership, directly or indirectly, of Securities of Parent (or other Securities
convertible into such Securities) representing more than 35% of the combined
voting power of all Securities of Parent entitled to vote in the election of
members of the Governing Body of

8

Parent (other than
Securities having such power only by reason of the happening of a contingency),
and the percentage of the combined voting power of all such Securities of
Parent owned and controlled by such Person or Persons exceeds the percentage of
the combined voting power of all such Securities of Parent owned and controlled
by the Sponsor and its Affiliates; (ii)  the occurrence of a change in the
composition of the Governing Body of Parent or Borrower such that a majority of
the members of any such Governing Body are not Continuing Directors;
(iii) the failure at any time of Parent to legally and beneficially own
and control 100% of the issued and outstanding shares of capital stock of
Borrower or the failure at any time of Parent to have the ability to elect all
of the Governing Body of Borrower; and (iv) the occurrence of any “Change of
Control” as defined in any indenture governing any Permitted Additional
Subordinated Financing.  As used herein,
the term “beneficially own” or “beneficial ownership” shall have the meaning
set forth in the Exchange Act and the rules and regulations promulgated
thereunder.

“Class”
means, as applied to Lenders, each of the following three classes of
Lenders:  (i) Lenders having Term
Loan Exposure, (ii)  Lenders having Revolving Loan Exposure, and
(iii) Lenders having Synthetic Letter of Credit Exposure.

“Co-Arrangers”
means Credit Suisse Securities (USA) LLC and J.P. Morgan Securities Inc.

“Co-Documentation
Agents” means Antares Capital Corporation, General Electric Capital
Corporation and Calyon New York Branch.

“Collateral”
means, collectively, all of the real, personal and mixed property (including
Capital Stock) in which Liens are purported to be granted pursuant to the
Collateral Documents as security for the Obligations.

“Collateral Access Agreement” means any
landlord waiver, mortgagee waiver, bailee letter or any similar acknowledgement
or agreement of any landlord or mortgagee in respect of any Real Property Asset
where any Collateral is located or any warehouseman or processor in possession
of any inventory or equipment of any Loan Party, substantially in the form of Exhibit XIV
annexed hereto, with such changes as may be agreed by Borrower and
Administrative Agent in the reasonable exercise of its discretion.

“Collateral
Account” has the meaning assigned to that term in the Security
Agreement.

“Collateral
Documents” means the Security Agreement, the Mortgages and all other
instruments or documents delivered by any Loan Party pursuant to this Agreement
or any of the other Loan Documents in order to grant to Administrative Agent,
on behalf of Lenders, a Lien on any real, personal or mixed property of that
Loan Party as security for the Obligations.

“Commercial
Letter of Credit” means any letter of credit or similar instrument
issued for the purpose of providing the primary payment mechanism in connection
with the

9

purchase of any
materials, goods or services by Borrower or any of its Subsidiaries in the
ordinary course of business of Borrower or such Subsidiary.

“Commitments”
means the commitments of Lenders to make Loans as set forth in
subsection 2.1A and subsection 3.3.

“Compliance
Certificate” means a certificate substantially in the form of Exhibit VIII
annexed hereto.

“Concrete Construction Asset Sale” means the sale of all of the assets of
Aluma Systems Concrete Construction, LLC, a Delaware limited liability company,
to one or more Persons in one transaction or a series of transactions.

“Contingent
Obligation”, as applied to any Person, means any direct or indirect
liability, contingent or otherwise, of that Person (i) with respect to any
Indebtedness, lease, dividend or other obligation of another if the primary
purpose or intent thereof by the Person incurring the Contingent Obligation is
to provide assurance to the obligee of such obligation of another that such
obligation of another will be paid or discharged, or that any agreements
relating thereto will be complied with, or that the holders of such obligation
will be protected (in whole or in part) against loss in respect thereof,
(ii) with respect to any letter of credit issued for the account of that
Person or as to which that Person is otherwise liable for reimbursement of
drawings, or (iii) under Hedge Agreements. 
Contingent Obligations shall include (a) the direct or indirect
guaranty, endorsement (otherwise than for collection or deposit in the ordinary
course of business), co-making, discounting with recourse or sale with
recourse by such Person of the obligation of another, (b) the obligation
to make take-or-pay or similar payments if required regardless of
non-performance by any other party or parties to an agreement, and (c) any
liability of such Person for the obligation of another through any agreement
(contingent or otherwise) (1) to purchase, repurchase or otherwise acquire
such obligation or any security therefor, or to provide funds for the payment
or discharge of such obligation (whether in the form of loans, advances, stock
purchases, capital contributions or otherwise) or (2) to maintain the
solvency or any balance sheet item, level of income or financial condition of
another if, in the case of any agreement described under subclauses (1) or
(2) of this sentence, the primary purpose or intent thereof is as described in
the preceding sentence.  The amount of
any Contingent Obligation shall be equal to the amount of the obligation so
guaranteed or otherwise supported or, if less, the amount to which such
Contingent Obligation is specifically limited.

“Continuing
Directors” means as of any date of determination, any member of the
Board of Directors of Parent or Borrower who (i) was a member of such
Board of Directors on the Restatement Date or (ii) was nominated for
election or elected to such Board of Directors with the affirmative vote of a
majority of the Continuing Directors who were members of such Board of
Directors at the time of such nomination or election.

“Contractual
Obligation”, as applied to any Person, means any provision of any
Security issued by that Person or of any material indenture, mortgage, deed of
trust, contract, undertaking, agreement or other instrument to which that
Person is a party or by which it or any of its properties is bound or to which
it or any of its properties is subject.

10

“Credit-Linked
Deposit” means, as to each Synthetic Letter of Credit Lender, the
cash deposit made by such Synthetic Letter of Credit Lender as contemplated by
subsection 3.6A (or made by its (direct or indirect) predecessor in
interest and acquired by such Synthetic Letter of Credit Lender upon assignment
to it of all or any portion of another Synthetic Letter of Credit Lender’s
rights and obligations under such other Lender’s Synthetic Letter of Credit
Commitment pursuant to subsection 2.9 or 10.1B, as the case may be), as
such deposit may be (i) reduced from time to time pursuant to the terms of
this Agreement and (ii) reduced or increased from time to time pursuant to
assignments to or by such Synthetic Letter of Credit Lender pursuant to
subsection 2.9 or 10.1B.  The
initial amount of each Synthetic Letter of Credit Lender’s Credit Linked
Deposit shall be equal to the amount of its initial Synthetic Letter of Credit
Commitment.

“Credit
Suisse” has the meaning assigned to that term in the preamble to
this Agreement.

“Currency
Agreement” means any foreign exchange contract, currency swap
agreement, futures contract, option contract, synthetic cap or other similar
agreement or arrangement to which Borrower or any of its Subsidiaries is a
party.

“Current Assets” means, as at any date of determination,
the total assets of Borrower and its Subsidiaries on a consolidated basis which
may properly be classified as current assets in conformity with GAAP, excluding
Cash and Cash Equivalents.

“Current Liabilities” means, as at any date of determination,
the total liabilities of Borrower and its Subsidiaries on a consolidated basis
which may properly be classified as current liabilities in conformity with
GAAP.

“Declined
Proceeds” has the meaning assigned to that term in subsection
2.4B(iv)(c).

“Deposit
Account” means a demand, time, savings, passbook or similar account
maintained with a Person engaged in the business of banking, including a
savings bank, savings and loan association, credit union or trust company.

“Discount
Note” means a non-interest-bearing promissory note or depository
note (within the meaning of the Depository Bills and Notes
Act (Canada)) denominated in Canadian Dollars issued by Borrower to
a Non-Acceptance Lender to evidence a BA Equivalent Loan.

“Dollar
Equivalent” means, on any date of determination, (a) with respect to
any amount denominated in Dollars, such amount, and (b) with respect to any
amount denominated in Canadian Dollars, the equivalent in Dollars of such
amount as determined by Administrative Agent using the Exchange Rate.

“Dollars”
and the sign “$” mean the lawful
money of the United States of America.

11

“Domestic
Subsidiary” means any Subsidiary of Borrower that is incorporated or
organized under the laws of the United States of America, any state thereof or
in the District of Columbia.

“Draft”
has the meaning assigned to that term in subsection 2.1F(vi).

“EBITDA”
means, for any period, the sum, without duplication, of the amounts for such
period of (i) Net Income, (ii) Interest Expense,
(iii) provisions for taxes based on the income of Borrower and its
Subsidiaries, (iv) total depreciation expense, (v) total amortization
expense, (vi) any Additional Costs during such period, and (vii) other
non-cash items (other than any such non-cash item to the extent it represents
an accrual of or reserve for cash expenditures in any future period), but only,
in the case of clauses (ii)-(vii), to the extent deducted in the
calculation of Net Income, less other non-cash items added in the
calculation of Net Income (other than any such non-cash item to the extent it
results in the receipt of cash payments in any future period), all of the
foregoing as determined on a consolidated basis for Borrower and its
Subsidiaries in conformity with GAAP.

“Eligible Assignee” means (i) any Lender, any Affiliate
of any Lender and any Approved Fund of any Lender; and (ii) (a) a
commercial bank organized under the laws of the United States or any state
thereof; (b) a savings and loan association or savings bank organized
under the laws of the United States or any state thereof; (c) a commercial
bank organized under the laws of any other country or a political subdivision
thereof; provided that (1) such bank is acting through a branch or
agency located in the United States or (2) such bank is organized under
the laws of a country that is a member of the Organization for Economic
Cooperation and Development or a political subdivision of such country; and
(d) any other entity that is an “accredited investor” (as defined in
Regulation D under the Securities Act) that extends credit or buys loans
as one of its businesses including insurance companies, mutual funds and lease
financing companies; provided that neither Borrower nor any Affiliate of
Borrower shall be an Eligible Assignee.

“Employee
Benefit Plan” means any “employee benefit plan” as defined in
Section 3(3) of ERISA which is maintained or contributed to by Borrower,
any of its Subsidiaries or any of their respective ERISA Affiliates, or with
respect to which there is any potential outstanding liability of Borrower.

“Environmental
Claim” means any investigation, notice, notice of violation, claim,
action, suit, proceeding, demand, abatement order or other order or directive
(conditional or otherwise), by any Government Authority or any other Person,
arising (i) pursuant to or in connection with any actual or alleged
violation of any Environmental Law, (ii) in connection with any Hazardous
Materials or any actual or alleged Hazardous Materials Activity, or
(iii) in connection with any actual or alleged damage, injury, threat or
harm to health, safety, natural resources or the environment.

“Environmental
Laws” means any and all current or future statutes, ordinances,
orders, rules, regulations, guidance documents, judgments, Governmental
Authorizations, or any other requirements of any Government Authority relating
to (i) environmental matters, including

 

12

those relating to
any Hazardous Materials Activity, (ii) the generation, use, storage,
transportation or disposal of Hazardous Materials, or (iii) occupational
safety and health, industrial hygiene, land use or the protection of human,
plant or animal health or welfare, in any manner applicable to Borrower or any
of its Subsidiaries or any Facility.

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

“ERISA
Affiliate”, as applied to any Person, means (i) any corporation
that is a member of a controlled group of corporations within the meaning of
Section 414(b) of the Internal Revenue Code of which that Person is a
member; (ii) any trade or business (whether or not incorporated) that is a
member of a group of trades or businesses under common control within the
meaning of Section 414(c) of the Internal Revenue Code of which that
Person is a member; and (iii) any member of an affiliated service group
within the meaning of Section 414(m) or (o) of the Internal Revenue Code
of which that Person, any corporation described in clause (i) above or any
trade or business described in clause (ii) above is a member.  Any former ERISA Affiliate of a Person or any
of its Subsidiaries shall continue to be considered an ERISA Affiliate of such
Person or such Subsidiary within the meaning of this definition with respect to
the period such entity was an ERISA Affiliate of such Person or such Subsidiary
and with respect to liabilities arising after such period for which such Person
or such Subsidiary could be liable under the Internal Revenue Code or ERISA.

“ERISA Event”
means (i) a “reportable event” within the meaning of Section 4043 of
ERISA and the regulations issued thereunder with respect to any Pension Plan
(excluding those for which the provision for 30-day notice to the PBGC
has been waived by regulation); (ii) the failure to meet the minimum
funding standard of Section 412 of the Internal Revenue Code with respect
to any Pension Plan (whether or not waived in accordance with
Section 412(d) of the Internal Revenue Code) or the failure to make by its
due date a required installment under Section 412(m) of the Internal
Revenue Code with respect to any Pension Plan or the failure to make any
required contribution to a Multiemployer Plan; (iii) the provision by the
administrator of any Pension Plan pursuant to Section 4041(a)(2) of ERISA
of a notice of intent to terminate such plan in a distress termination
described in Section 4041(c) of ERISA; (iv) the withdrawal by
Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates
from any Pension Plan with two or more contributing sponsors or the termination
of any such Pension Plan, in either case which results in liability pursuant to
Section 4063 or 4064 of ERISA; (v) the institution by the PBGC of
proceedings to terminate any Pension Plan, or the occurrence of any event or
condition which might constitute grounds under ERISA for the termination of, or
the appointment of a trustee to administer, any Pension Plan; (vi) the
imposition of liability on Borrower, any of its Subsidiaries or any of their
respective ERISA Affiliates pursuant to Section 4062(e) or 4069 of ERISA
or by reason of the application of Section 4212(c) of ERISA;
(vii) the withdrawal of Borrower, any of its Subsidiaries or any of their
respective ERISA Affiliates in a complete or partial withdrawal (within the
meaning of Sections 4203 and 4205 of ERISA) from any Multiemployer Plan if
there is any potential withdrawal liability therefor, or the receipt by
Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates
of notice from any Multiemployer Plan that it is in reorganization or
insolvency pursuant to Section 4241 or 4245 of ERISA, or that it intends
to terminate or has

13

terminated under
Section 4041A or 4042 of ERISA; (viii) the assertion of a material
claim (other than routine claims for benefits) against any Employee Benefit
Plan other than a Multiemployer Plan or the assets thereof, or against
Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates
in connection with any Employee Benefit Plan; (ix) receipt from the Internal
Revenue Service of notice of the failure of any Pension Plan (or any other
Employee Benefit Plan intended to be qualified under Section 401(a) of the
Internal Revenue Code) to qualify under Section 401(a) of the Internal
Revenue Code, or the failure of any trust forming part of any Pension Plan to
qualify for exemption from taxation under Section 501(a) of the Internal
Revenue Code; or (x) the imposition of a Lien pursuant to
Section 401(a)(29) or 412(n) of the Internal Revenue Code or pursuant to
ERISA with respect to any Pension Plan.

“Event of
Default” means each of the events set forth in Section 8.

“Excess Cash
Flow” means, for any period, an amount (if positive) equal to
(i) the sum, without duplication, of the amounts for such period of
(a) EBITDA and (b) the Working Capital Adjustment minus
(ii) the sum, without duplication, of the amounts for such period of
(a) voluntary and scheduled repayments of Total Debt made in cash
(excluding repayments of Revolving Loans except to the extent the Revolving
Loan Commitments are permanently reduced in connection with such repayments),
(b) Capital Expenditures made in cash (net of any proceeds of any related
financings with respect to such expenditures), (c) Cash Interest Expense,
(d) the provision for current taxes based on the income of Borrower and
its Subsidiaries and payable in cash with respect to such period, and
(e) to the extent not included in the Working Capital Adjustment,
(A) any Additional Costs actually paid in cash during such period, (B) any
cash consideration paid by Borrower or any of its Subsidiaries in connection
with any Permitted Acquisitions (net of any amount of Indebtedness incurred or
assumed in connection therewith and except to the extent financed with the
proceed of any issuance of equity Securities) actually made during such period
and as and to the extent permitted under subsection 7.3(xi), and
(C) Restricted Junior Payments actually made in cash during such period
and as and to the extent permitted under subsection 7.5.

“Exchange Act”
means the Securities Exchange Act of 1934, as amended from time to time, and
any successor statute.

“Exchange
Rate” means, on any date of determination, (a) for purposes of
determining the Dollar Equivalent, the spot rate at which Canadian Dollars may
be exchanged into Dollars one Business Day prior to the Prior Restatement Date
as set forth on the relevant Bloomberg Key Cross Currency Rate Page at
approximately 11:00 a.m. (New York City time) on such date or, if such spot
rate is not available on the relevant Bloomberg Key Cross Currency Rate Page,
such spot rate as quoted by Credit Suisse at approximately 11:00 a.m. (New York
City time) on such date and (b) for purposes of determining the Canadian Dollar
Equivalent, the spot rate at which Dollars may be exchanged into Canadian
Dollars one Business Day prior to the Prior Restatement Date as set forth on
the relevant Bloomberg Key Cross Currency Rate Page at approximately 11:00 a.m.
(New York City time) on such date or, if such spot rate is not available on the
relevant Bloomberg Key Cross Currency Rate Page, such spot rate as quoted by
Credit Suisse at approximately 11:00 a.m. (New York City time) on such date.

14

“Existing
Credit Agreement” has the meaning assigned to that term in the
preliminary statements to this Agreement.

“Existing U.S. Dollar Term Loans” has the meaning assigned to that term in
the preliminary statements to this Agreement.

“Facilities”
means any and all real property (including all buildings, fixtures or other
improvements located thereon) now, hereafter or heretofore owned, leased,
operated or used by any of the Loan Parties or any of their respective
predecessors or Affiliates.

“Federal
Funds Effective Rate” means, for any period, a fluctuating interest
rate equal for each day during such period to the weighted average of the rates
on overnight Federal funds transactions with members of the Federal Reserve
System arranged by Federal funds brokers, as published for such day (or, if
such day is not a Business Day, for the next preceding Business Day) by the
Federal Reserve Bank of New York, or, if such rate is not so published for any
day which is a Business Day, the average of the quotations for such day on such
transactions received by Administrative Agent from three Federal funds brokers
of recognized standing selected by Administrative Agent.

“Financial
Plan” has the meaning assigned to that term in
subsection 6.1(xii).

“First
Priority” means, with respect to any Lien purported to be created in
any Collateral pursuant to any Collateral Document, that (i) such Lien is
perfected and has priority over any other Lien on such Collateral (other than
Liens permitted pursuant to subsection 7.2) and (ii) such Lien is the only Lien (other than Liens permitted
pursuant to subsection 7.2) to which such Collateral is subject.

“Fiscal
Quarter” means a fiscal quarter of any Fiscal Year.

“Fiscal Year”
means the fiscal year of the Loan Parties ending on December 31 of each
calendar year.  For purposes of this Agreement,
any particular Fiscal Year shall be designated by reference to the calendar
year in which such Fiscal Year ends.

“Flood Hazard
Property” means any Real Property Asset subject to a Mortgage
located in an area designated by the Federal Emergency Management Agency as
having special flood or mud slide hazards.

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

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

“Funding and
Payment Office” means (i) the office of Administrative Agent
and Swing Line Lender located at Eleven Madison Avenue, New York, New York
10010-3629 or (ii) such other office of Administrative Agent and Swing
Line Lender as may from time to

15

time hereafter be
designated as such in a written notice delivered by Administrative Agent and
Swing Line Lender to Borrower and each Lender.

“Funding Date”
means the date of the funding of a Loan.

“GAAP”
means, subject to the limitations on the application thereof set forth in
subsection 1.2, generally accepted accounting principles set forth in
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as may be approved by a significant segment of the accounting
profession, in each case as the same are applicable to the circumstances as of
the date of determination.

“Governing
Body” means the board of directors or other body having the power to
direct or cause the direction of the management and policies of a Person that
is a corporation, partnership, trust or limited liability company.

“Government
Authority” means any political subdivision or department thereof,
any other governmental or regulatory body, commission, central bank, board,
bureau, organ or instrumentality or any court, in each case whether federal,
state, local or foreign.

“Governmental
Authorization” means any permit, license, registration,
authorization, plan, directive, consent, order or consent decree of or from, or
notice to, any Government Authority.

“Granting Lender” has the meaning assigned
to that term in subsection 10.1B(iii).

“Guaranties”
means the Parent Guaranty and the Subsidiary Guaranty.

“Hazardous
Materials” means (i) any chemical, material or substance at any
time defined as or included in the definition of “hazardous substances”, “hazardous
wastes”, “hazardous materials”, “extremely hazardous waste”, “acutely hazardous
waste”, “radioactive waste”, “biohazardous waste”, “pollutant”, “toxic
pollutant”, “contaminant”, “restricted hazardous waste”, “infectious waste”, “toxic
substances”, or any other term or expression intended to define, list or
classify substances by reason of properties harmful to health, safety or the
indoor or outdoor environment (including harmful properties such as
ignitability, corrosivity, reactivity, carcinogenicity, toxicity, reproductive
toxicity, “TCLP toxicity” or “EP toxicity” or words of similar import under any
applicable Environmental Laws); (ii) any oil, petroleum, petroleum
fraction or petroleum derived substance; (iii) any drilling fluids,
produced waters and other wastes associated with the exploration, development
or production of crude oil, natural gas or geothermal resources; (iv) any
flammable substances or explosives; (v) any radioactive materials;
(vi) any asbestos-containing materials; (vii) urea formaldehyde foam
insulation; (viii) electrical equipment which contains any oil or
dielectric fluid containing polychlorinated biphenyls; (ix) pesticides; and
(x) any other chemical, material or substance, exposure to which is
prohibited, limited or regulated by any Government Authority or which may or
could pose a

16

hazard to the
health and safety of the owners, occupants or any Persons in the vicinity of
any Facility or to the indoor or outdoor environment.

“Hazardous
Materials Activity” means any past, current, proposed or threatened
activity, event or occurrence involving any Hazardous Materials, including the
use, manufacture, possession, storage, holding, presence, existence, location,
Release, threatened Release, discharge, placement, generation, transportation,
processing, construction, treatment, abatement, removal, remediation, disposal,
disposition or handling of any Hazardous Materials, and any corrective action
or response action with respect to any of the foregoing.

“Hedge
Agreement” means an Interest Rate Agreement or a Currency Agreement
designed to hedge against fluctuations in interest rates or currency values,
respectively.

“Holdings” means Brand Holdings, LLC, a
Delaware limited liability company.

“Incremental Term Lender” means a Lender that has an Incremental
Term Loan Commitment and/or that has an outstanding Incremental Term Loan.

“Incremental Term Loan Amount” means, at any time, the excess, if any,
of (a) $100,000,000 over (b) the aggregate amount of all Incremental
Term Loan Commitments established prior to such time pursuant to
subsection 2.10.

“Incremental Term Loan Assumption
Agreement” means
an Incremental Term Loan Assumption Agreement among, and in form and substance
reasonably satisfactory to, Borrower, Administrative Agent and one or more
Incremental Term Lenders.

“Incremental Term Loan Commitment” means the commitment of an Incremental
Term Lender to make Incremental Term Loans to Borrower pursuant to
subsection 2.10.

“Incremental Term Loan Maturity
Date” means the
final maturity date of any Incremental Term Loan, as set forth in the
applicable Incremental Term Loan Assumption Agreement.

“Incremental Term Loan Repayment
Dates” means the
dates scheduled for the repayment of principal of any Incremental Term Loan, as
set forth in the applicable Incremental Term Loan Assumption Agreement.

“Incremental Term Loans” means Term Loans made by Incremental
Term Lenders to Borrower pursuant to subsection 2.1A(v).  Incremental Term Loans may be made in the
form of additional U.S. Dollar Term Loans or, to the extent permitted by
subsection 2.10 and provided for in the relevant Incremental Term Loan
Assumption Agreement, Other Term Loans.

“Indebtedness”,
as applied to any Person, means (i) all indebtedness for borrowed money,
(ii) that portion of obligations with respect to Capital Leases that is
properly classified as a liability on a balance sheet in conformity with GAAP,
(iii) notes payable and

17

drafts accepted
representing extensions of credit whether or not representing obligations for
borrowed money, (iv) any obligation owed for all or any part of the
deferred purchase price of property or services (excluding any such obligations
incurred under ERISA), which purchase price is (a) due more than six
months from the date of incurrence of the obligation in respect thereof or (b)
evidenced by a note or similar written instrument, and (v) all indebtedness secured by any Lien on any
property or asset owned or held by that Person regardless of whether the
indebtedness secured thereby shall have been assumed by that Person or is
nonrecourse to the credit of that Person. 
Obligations under Interest Rate Agreements and Currency Agreements
constitute (1) in the case of Hedge Agreements, Contingent Obligations,
and (2) in all other cases, Investments, and in neither case constitute
Indebtedness.  Notwithstanding the
foregoing, “Indebtedness” shall not include
obligations arising under agreements of Parent, Borrower or any of its
Subsidiaries providing for indemnification, adjustment of purchase price or
other post-closing payment adjustments, wholly contingent earn-outs or other
similar obligations, or from guarantees or letters of credit, surety bonds or
performance bonds securing any obligation of Parent, Borrower or such
Subsidiary pursuant to such agreement (except to the extent of unreimbursed
drawings thereunder), in each case, incurred in connection with the disposition
or acquisition of any business, assets or Subsidiary.

“Indemnified
Liabilities” has the meaning assigned to that term in
subsection 10.3.

“Indemnitee”
has the meaning assigned to that term in subsection 10.3.

“Intellectual
Property” means all patents, trademarks, tradenames, copyrights,
technology, software, know-how and processes used in or necessary for the
conduct of the business of Borrower and its Subsidiaries as currently conducted
that are material to the condition (financial or otherwise), business or
operations of Borrower and its Subsidiaries, taken as a whole.

“Interest
Expense” means, for any period, total interest expense (including
that portion attributable to Capital Leases in accordance with GAAP and
capitalized interest) of Borrower and its Subsidiaries on a consolidated basis
with respect to all outstanding Indebtedness of Borrower and its Subsidiaries,
including all commissions, discounts and other fees and charges owed with
respect to letters of credit and bankers’ acceptance financing, net costs under
Interest Rate Agreements and amounts referred to in subsection 2.3 payable
to Administrative Agent and Lenders that is considered interest expense in
accordance with GAAP, but excluding, however, any such amounts referred to in
subsection 2.3 on or before the Original Closing Date.

“Interest
Payment Date” means (i) with respect to any Base Rate Loan or
Canadian Prime Rate Loan, the last Business Day of March, June, September and
December of each year, commencing on the first such date to occur after the
Original Closing Date, and (ii) with respect to any LIBOR Rate Loan, the
last day of each Interest Period applicable to such Loan; provided that
in the case of each Interest Period of longer than three months “Interest
Payment Date” shall also include each date that is three months, or a multiple
thereof, after the commencement of such Interest Period.

18

“Interest
Period” has the meaning assigned to that term in
subsection 2.2B.

“Interest
Rate Agreement” means any interest rate swap agreement, interest
rate cap agreement, interest rate collar agreement or other similar agreement
or arrangement to which Parent or any of its Subsidiaries is a party.

“Interest
Rate Determination Date”, with respect to any Interest Period for
LIBOR Rate Loans, means the second Business Day prior to the first day of such
Interest Period.

“Interest
Rate Differential” means an amount (expressed as a percentage per
annum) determined from time to time by Administrative Agent in consultation
with Borrower that represents the excess of the Adjusted LIBOR Rate at the time
of determination over the rate of return per annum payable to the Synthetic
Letter of Credit Lenders by Administrative Agent on the Credit-Linked Deposits
at such time.  On the Restatement Date,
the Interest Rate Differential is 0.10% per annum.

“Internal
Revenue Code” means the Internal Revenue Code of 1986, as amended to
the date hereof and from time to time hereafter, and any successor statute.

“Investment”
means (i) any direct or indirect purchase or other acquisition by Parent
or any of its Subsidiaries of, or of a beneficial interest in, any Securities
of any other Person (including any Subsidiary of Borrower), (ii) any
direct or indirect redemption, retirement, purchase or other acquisition for
value, by any Subsidiary of Borrower from any Person other than Borrower or any
of its Subsidiaries, of any equity Securities of such Subsidiary, (iii) any
direct or indirect loan, advance (other than advances to employees for moving,
entertainment and travel expenses, drawing accounts and similar expenditures in
the ordinary course of business) or capital contribution by Parent or any of
its Subsidiaries to any other Person, including all indebtedness and accounts
receivable from that other Person that are not current assets or did not arise
from sales to that other Person in the ordinary course of business, or
(iv) Interest Rate Agreements or Currency Agreements not constituting
Hedge Agreements. The amount of any Investment shall be the original cost of
such Investment plus the cost of all additions thereto, without any
adjustments for increases or decreases in value, or write-ups, write-downs or
write-offs with respect to such Investment (other than adjustments for the
repayment of, or the refund of capital with respect to, the original principal
amount of any such Investment).

“IP
Collateral” means, collectively, the Intellectual Property that
constitutes Collateral under the Security Agreement.

“IPO” has the meaning assigned to that term
in the preliminary statements to this Agreement.

“IPO Proceeds”
has the meaning assigned to that term in the preliminary statements to this
Agreement.

“Issuing
Lender” means any Revolving Issuing Lender or Synthetic Letter of
Credit Issuing Lender.

19

“Joint
Venture” means a joint venture, partnership or other similar
arrangement, whether in corporate, partnership or other legal form.

“Leasehold
Property” means any leasehold interest of any Loan Party as lessee
under any lease of real property.

“Lender”
and “Lenders” means the Persons
identified as “Lenders” and listed on the signature pages of the Amendment
Agreement, together with their successors and permitted assigns pursuant to
subsection 10.1, and the term “Lenders” shall include Swing Line Lender
unless the context otherwise requires; provided that the term “Lenders”, when used in the context of a
particular Commitment, shall mean Lenders having that Commitment.

“Letter of
Credit” and “Letters of Credit”
means (i) Revolving Letters of Credit and (ii) Synthetic Letters of
Credit.

“Leverage
Ratio” means, as at any date, the ratio of (a) Total Debt as at
such date (net of the aggregate amount of unrestricted Cash and Cash
Equivalents on hand as at such date of Borrower and its Domestic Subsidiaries)
to (b) EBITDA for the consecutive four Fiscal Quarters ending on such date.

“LIBOR Rate
Loans” means Loans bearing interest at rates determined by reference
to the Adjusted LIBOR Rate as provided in subsection 2.2A.

“LIBOR Rate
Margin” means, for any day, (i) with respect to any Revolving Loan,
2.50%, and (ii) with respect to any U.S. Dollar Term Loan or Synthetic Letter
of Credit Loan, 2.25%; provided that upon the satisfaction of the
Specified Ratings Condition (as evidenced by an Officer’s Certificate of
Borrower certifying such satisfaction delivered to Administrative Agent) and
for so long as the Specified Ratings Condition shall remain satisfied, “LIBOR
Rate Margin” shall mean (i) with respect to any Revolving Loan, 2.25%, and (ii)
with respect to any U.S. Dollar Term Loan or Synthetic Letter of Credit Loan,
2.00%.

“Lien”
means any lien, mortgage, pledge, assignment, security interest, charge or
encumbrance of any kind (including any conditional sale or other title
retention agreement, any lease in the nature thereof, and any agreement to give
any security interest) and any option, trust or other preferential arrangement
having the practical effect of any of the foregoing.

“Loan”
or “Loans” means one or more of
the Term Loans, Revolving Loans, Swing Line Loans or Synthetic Letter of Credit
Loans or any combination thereof.

“Loan
Documents” means the Amendment Agreement, this Agreement, each
Incremental Term Loan Assumption Agreement, the Notes, the Letters of Credit
(and any applications for, or reimbursement agreements or other documents or
certificates executed by Borrower in favor of an Issuing Lender relating to,
the Letters of Credit), the Guaranties and the Collateral Documents.

20

“Loan Party”
means each of Parent, Borrower and any of Borrower’s Subsidiaries from time to
time executing a Loan Document, and the “Loan Parties” means all such Persons,
collectively.

“Margin Stock”
has the meaning assigned to that term in Regulation U of the Board of Governors
of the Federal Reserve System as in effect from time to time.

“Material
Adverse Effect” means (i) a material adverse effect upon the
business, operations, properties, assets or condition (financial or otherwise)
of Parent and its Subsidiaries taken as a whole or (ii) the material
impairment of the ability of any Loan Party to perform, or of Administrative
Agent or Lenders to enforce, the Obligations.

“Material
Contract” means any contract or other arrangement to which Parent or
any of its Subsidiaries is a party (other than the Loan Documents) for which
breach, nonperformance, cancellation or failure to renew could reasonably be
expected to have a Material Adverse Effect.

“Material Real Property” means, as of any
date of determination, (i) any fee interest in real property of any Loan Party
having a fair market value of $4,000,000 or more and (ii) a Leasehold Property
reasonably determined by Administrative Agent to be of material value as
Collateral or of material importance to the operations of Borrower and where
Borrower or any Subsidiary Guarantor holds on a regular basis at such Leasehold
Property personal property with a fair market value in excess of (or such
Borrower or Subsidiary Guarantor anticipates that the fair market value of such
personal property held on a regular basis will, at any time during the term of
such lease, exceed) $10,000,000.

“Material Subsidiary” means any Domestic
Subsidiary which, on a consolidated basis for such Domestic Subsidiary and its
Subsidiaries, holds, owns or contributes, as the case may be, 5% or more of the
gross revenues, assets or EBITDA of Borrower and its Subsidiaries, on a consolidated
basis.

“Maturing
Amount” has the meaning assigned to that term in subsection
2.1F(iv).

“Maximum
Consolidated Net Capital Expenditures Amount” has the meaning
assigned to that term in subsection 7.8.

“Mortgage”
means (i) a security instrument (whether designated as a deed of trust or
a mortgage or by any similar title) executed and delivered by any Loan Party,
substantially in the form agreed upon by Borrower and Administrative Agent as
of the Original Closing Date or in such other form as may be approved by
Administrative Agent in its sole discretion, in each case with such changes
thereto as may be recommended by Administrative Agent’s local counsel based on
local laws or customary local mortgage or deed of trust practices, or
(ii) at Administrative Agent’s option, in the case of an Additional
Mortgaged Property, an amendment to an existing Mortgage, in form satisfactory
to Administrative Agent, adding such Additional Mortgaged Property to the Real
Property Assets encumbered by such existing

21

Mortgage, in
either case as such security instrument or amendment may be amended,
supplemented or otherwise modified from time to time.  “Mortgages” means all such instruments.

“Multiemployer
Plan” means any Pension Plan that is a “multiemployer plan” as
defined in Section 3(37) of ERISA.

“Net Asset
Sale Proceeds”, with respect to any Asset Sale, means Cash payments
(including any Cash received by way of deferred payment pursuant to, or by
monetization of, a note receivable or otherwise, but only as and when so
received) received from such Asset Sale, net of any bona fide direct costs,
fees and expenses incurred in connection with such Asset Sale, including,
without limitation, (i) income taxes reasonably estimated to be actually
payable within two years of the date of such Asset Sale as a result of any gain
recognized in connection with such Asset Sale, (ii) payment of the
outstanding principal amount of, premium or penalty, if any, and interest on
any Indebtedness (other than the Loans) that is secured by a Lien on the stock
or assets in question and that is required to be repaid under the terms thereof
as a result of such Asset Sale and (iii) all reasonable and customary
legal, investment banking, brokerage, accounting and other professional fees,
sales commissions and disbursements and all other reasonable fees, expenses and
charges, in each case actually incurred in connection with such Asset Sale.

“Net Debt
Securities Proceeds” has the meaning assigned to that term in
subsection 2.4B(iii)(d).

“Net Equity
Securities Proceeds” has the meaning assigned to that term in
subsection 2.4B(iii)(c).

“Net Income”
means, for any period, the net income (or loss) of Borrower and its
Subsidiaries on a consolidated basis for such period taken as a single
accounting period determined in conformity with GAAP; provided that
there shall be excluded (i) the income (or loss) of any Person (other than
a Subsidiary of Borrower) in which any other Person (other than Borrower or any
of its Subsidiaries) has a joint interest, except to the extent of the amount
of dividends or other distributions actually paid to Borrower or any of its
Subsidiaries by such Person during such period, (ii) the income (or loss)
of any Person accrued prior to the date it becomes a Subsidiary of Borrower or
is merged into or consolidated with Borrower or any of its Subsidiaries or that
Person’s assets are acquired by Borrower or any of its Subsidiaries,
(iii) the income of any Subsidiary of Borrower to the extent that the
declaration or payment of dividends or similar distributions by that Subsidiary
of that income is not at the time permitted by operation of the terms of its
charter or any agreement, instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to that Subsidiary, (iv) any after-tax
gains or losses attributable to asset sales or returned surplus assets of any
Pension Plan, and (v) (to the extent not included in clauses
(i) through (iv) above) any net extraordinary gains or net non-cash
extraordinary losses.

“Net
Insurance/Condemnation Proceeds” means any Cash payments or proceeds
received by Parent or any of its Subsidiaries (i) under any business
interruption or

22

casualty insurance
policy in respect of a covered loss thereunder or (ii) as a result of the
taking of any assets of Parent or any of its Subsidiaries by any Person
pursuant to the power of eminent domain, condemnation or otherwise, or pursuant
to a sale of any such assets to a purchaser with such power under threat of
such a taking, in each case net of any actual and reasonable documented costs
incurred by Parent or any of its Subsidiaries in connection with the adjustment
or settlement of any claims of Parent or such Subsidiary in respect thereof and
any proceeds or awards required to be paid to a creditor (other than Lenders)
which holds a first-priority Lien permitted under the Loan Documents on the
property which is the subject of such casualty or condemnation event described
above.

“Non-Acceptance
Lender” means a Canadian Dollar Term Lender that does not accept
Bankers’ Acceptances.

“Non-US
Lender” means a Lender that is organized under the laws of any
jurisdiction other than the United States or any state or other political
subdivision thereof.

“Notes”
means one or more of the Term Notes, Revolving Notes, Swing Line Note or any
combination thereof.

“Notice of
Borrowing” means a notice substantially in the form of Exhibit I
annexed hereto.

“Notice of
Conversion/Continuation” means a notice substantially in the form of
Exhibit II annexed hereto.

“Obligations”
means all obligations of every nature of each Loan Party from time to time owed
to Administrative Agent, any other Agent, Lenders or any of them under the Loan
Documents, whether for principal, interest, reimbursement of amounts drawn
under Letters of Credit, fees, expenses, indemnification or otherwise.

“Officer”
means the president, chief executive officer, a vice president, chief financial
officer, treasurer, general partner (if an individual), managing member (if an
individual) or other individual appointed by the Governing Body or the
Organizational Documents of a corporation, partnership, trust or limited
liability company to serve in a similar capacity as the foregoing.

“Officer’s
Certificate”, as applied to any Person that is a corporation,
partnership, trust or limited liability company, means a certificate executed
on behalf of such Person by one or more Officers of such Person or one or more
Officers of a general partner or a managing member if such general partner or
managing member is a corporation, partnership, trust or limited liability
company.

“Operating
Lease”, as applied to any Person, means any lease (including leases
that may be terminated by the lessee at any time) of any property (whether
real, personal or mixed) that is not a Capital Lease other than any such lease
under which that Person is the lessor.

23

“Organizational
Documents” means the documents (including Bylaws, if applicable)
pursuant to which a Person that is a corporation, partnership, trust or limited
liability company is organized.

“Original
Closing Date” means October 16, 2002.

“Other Term
Loans” has the meaning assigned to that term in subsection 2.10.

“Parent” means Brand Energy &
Infrastructure Services, Inc., a Delaware corporation (f/k/a Brand Intermediate
Holdings, Inc.).

“Parent Certificate of Incorporation” means
the Second Amended and Restated Certificate of Incorporation of Parent, in the
form delivered to Administrative Agent and Lenders prior to the execution of
the Amendment Agreement and as such Second Amended and Restated Certificate of
Incorporation may be further amended from time to time thereafter to the extent
permitted under subsection 7.12.

“Parent Guaranty” means
the Parent Guaranty dated as of the Original Closing Date, entered into by
Parent in favor of Administrative Agent for the benefit of Lenders, a copy of
which is attached as Exhibit XIII hereto, as such Parent Guaranty may be
amended, restated, supplemented or otherwise modified from time to time.

“Participant”
means a purchaser of a participation in the rights and obligations under this
Agreement pursuant to subsection 10.1C.

“Patriot Act” means the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001 (USA PATRIOT Act).

“PBGC”
means the Pension Benefit Guaranty Corporation or any successor thereto.

“Pension Plan”
means any Employee Benefit Plan, other than a Multiemployer Plan, that is
subject to Section 412 of the Internal Revenue Code or Section 302 of
ERISA.

“Permitted
Acquisition” has the meaning assigned to that term in subsection
7.3(xi).

“Permitted
Additional Subordinated Financing” means the issuance by Borrower of
unsecured Indebtedness that (i) is expressly subordinated to the prior payment
in full in cash of the Secured Obligations (as defined in the Security
Agreement) on terms and conditions no less favorable to Lenders than the terms
and conditions set forth in the Senior Subordinated Notes, (ii) will not mature
prior to the date that is one year after the Term Loan Maturity Date, (iii) has
no scheduled amortization or payments of principal prior to the Term Loan
Maturity Date, and (iv) has covenant, default and remedy provisions no more
restrictive, or mandatory prepayment, repurchase or redemption provisions no
more onerous or expansive in scope, taken as a whole, than those set forth in
the Senior Subordinated Notes (prior to giving

24

effect to the
amendments to the Senior Subordinated Note Indenture in connection with the
Senior Subordinated Notes Consent Solicitation).

“Permitted
Encumbrances” means the following types of Liens (excluding any such
Lien imposed pursuant to Section 401(a)(29) or 412(n) of the Internal
Revenue Code or by ERISA, any such Lien relating to or imposed in connection
with any Environmental Claim but including any of the foregoing to the extent
such Liens are not delinquent or are being contested in good faith by
appropriate proceedings and excluding any such Lien expressly prohibited by any
applicable terms of any of the Collateral Documents):

(i)            Liens for taxes, assessments or
governmental charges or claims the payment of which is not, at the time,
required by subsection 6.3;

(ii)           statutory Liens of landlords, Liens
of collecting banks under the UCC on items in the course of collection,
statutory Liens and rights of set-off of banks, statutory Liens of carriers,
warehousemen, mechanics, repairmen, workmen and materialmen, and other Liens
imposed by law, in each case incurred in the ordinary course of business
(a) for amounts not yet overdue or (b) for amounts that are overdue
and that (in the case of any such amounts overdue for a period in excess of
30 days) are being contested in good faith by appropriate proceedings, so
long as (1) such reserves or other appropriate provisions, if any, as
shall be required by GAAP shall have been made for any such contested amounts,
and (2) in the case of a Lien with respect to any portion of the
Collateral, such contest proceedings conclusively operate to stay the sale of
any portion of the Collateral on account of such Lien;

(iii)          Liens incurred or deposits made in the
ordinary course of business in connection with workers’ compensation,
unemployment insurance and other types of governmental insurance benefits or
social security, or to secure the performance of tenders, statutory
obligations, insurance obligations, surety and appeal bonds, bids, leases,
government contracts, trade contracts, performance and return-of-money bonds
and other similar obligations (exclusive of obligations for the payment of
borrowed money), so long as no foreclosure, sale or similar proceedings have
been commenced with respect to any portion of the Collateral on account
thereof;

(iv)          any attachment or judgment Lien not
constituting an Event of Default under subsection 8.8;

(v)           (a) licenses (with respect to
Intellectual Property and other property), leases (other than leases of
scaffolding equipment) or subleases granted to third parties in accordance with
any applicable terms of the Collateral Documents and not interfering in any
material respect with the ordinary conduct of the business of Borrower or any
of its Subsidiaries or resulting in a material diminution in the value of any
Collateral as security for the Obligations and (b) leases of scaffolding
equipment granted to customers of Borrower or any of its Subsidiaries in the
ordinary conduct of the business of Borrower or any such Subsidiary;

 

25

(vi)          (a) easements, rights-of-way,
restrictions, encroachments, and other minor defects or irregularities in
title, in each case which do not and will not interfere in any material respect
with the ordinary conduct of the business of Borrower or any of its
Subsidiaries or result in a material diminution in the value of any Collateral
as security for the Obligations; and (b) in the case of any property covered by
a Mortgage, encumbrances disclosed in the title insurance policy issued to, and
reasonably approved by, Administrative Agent;

(vii)         any (a) interest or title of a
lessor or sublessor under any lease not prohibited by this Agreement,
(b) Lien or restriction that the interest or title of such lessor or
sublessor may be subject to, or (c) subordination of the interest of the
lessee or sublessee under such lease to any Lien or restriction referred to in
the preceding clause (b), so long as the holder of such Lien or
restriction agrees to recognize the rights of such lessee or sublessee under
such lease;

(viii)        Liens arising from filing UCC financing
statements relating solely to leases not prohibited by this Agreement;

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

(x)            any zoning or similar law or right
reserved to or vested in any governmental office or agency to control or
regulate the use of any real property;

(xi)           Liens granted pursuant to the
Collateral Documents; and

(xii)          Liens securing obligations (other than
obligations representing Indebtedness for borrowed money) under operating,
reciprocal easement or similar agreements entered into in the ordinary course
of business of Borrower and its Subsidiaries.

“Person”
means and includes natural persons, corporations, limited partnerships, general
partnerships, limited liability companies, limited liability partnerships,
joint stock companies, Joint Ventures, associations, companies, trusts, banks,
trust companies, land trusts, business trusts or other organizations, whether
or not legal entities, and governments (whether federal, state or local,
domestic or foreign, and including political subdivisions thereof) and agencies
or other administrative or regulatory bodies thereof.

“Pledged
Collateral” means, collectively, the “Pledged Shares” and the “Pledged
Debt”, each as defined in the Security Agreement.

“Potential
Event of Default” means a condition or event that, after notice or
lapse of time or both, would constitute an Event of Default.

“Pricing
Certificate” means an Officer’s Certificate of Borrower certifying
the Leverage Ratio as at the last day of any Fiscal Quarter and setting forth the
calculation of such

26

Leverage Ratio in
reasonable detail, which Officer’s Certificate may be delivered to
Administrative Agent at any time on or after the date of delivery by Borrower
of the Compliance Certificate with respect to the period ending on the last day
of such Fiscal Quarter.

“Prime Rate”
means the rate of interest per annum determined from time to time by
Administrative Agent as its prime rate in effect at its principal office in New
York City and notified to Borrower.  The
Prime Rate is a reference rate and does not necessarily represent the lowest or
best rate actually charged to any customer. 
Administrative Agent or any other Lender may make commercial loans or
other loans at rates of interest at, above or below the Prime Rate.

“Prior
Restatement Date” means July 29, 2005.

“Proceedings”
means any action, suit, proceeding (whether administrative, judicial or
otherwise), governmental investigation or arbitration.

“Property Sale-Leaseback” means any sale or
transfer of real property acquired after the Restatement (other than any such
real property acquired in a Permitted Acquisition) by Borrower or any of its
Subsidiaries to any other Person and with respect to which Borrower or any such
Subsidiary becomes and remain liable as lessee, guarantor or other surety with
respect to any such lease.

“Pro Forma Basis” means, as of any date of
determination, the compliance of Borrower with the financial covenants set
forth in subsection 7.6A and 7.6B as of the last day of the four Fiscal Quarter
period most recently ended prior to such date of determination for which the
relevant financial information is available (the “Compliance Period”), after giving effect on a pro forma basis to any Permitted Acquisitions
made during such Compliance Period and any dispositions made during such
Compliance Period (other than sales of inventory in the ordinary course of
business and dispositions of obsolete equipment) on the following basis:

(i)            any Indebtedness
incurred or assumed by Borrower or any of its Subsidiaries in connection with
such Permitted Acquisitions and any Indebtedness repaid in connection with such
Permitted Acquisitions or dispositions shall be deemed to have been incurred or
repaid, respectively, as of the first day of the Compliance Period;

(ii)           if such
Indebtedness incurred or assumed by Borrower or any of its Subsidiaries in
connection with such Permitted Acquisitions has a floating or formula rate,
then the rate of interest for such Indebtedness for the applicable period shall
be computed as if the rate in effect for such Indebtedness on the relevant
measurement date had been the applicable rate for the entire applicable period;

(iii)          income statement
items (whether positive or negative) attributable to the property or business
acquired or disposed of in such Permitted Acquisitions or dispositions shall be
included as if such acquisitions or dispositions took place on the first day of
such Compliance Period on a pro forma basis;
and

27

(iv)          any historical
extraordinary non-recurring costs or expenses or other verifiable costs or
expenses that will not continue after the acquisition or disposition date may
be eliminated and other expenses and cost reductions may be reflected so long
as such pro forma adjustments are
(a) directly attributable to such Permitted Acquisition or disposition,
(b) expected to have a continuing impact on Borrower and its Subsidiaries
and (c) factually supportable.

All pro forma adjustments shall be approved
for use in such calculations by Administrative Agent.

“Pro Rata
Share” means (i) with respect to all payments, computations and
other matters relating to the Term Loan of any Lender, the percentage obtained
by dividing (x) the Term Loan Exposure of that Lender by (y) the
aggregate Term Loan Exposure of all Lenders, (ii) with respect to all
payments, computations and other matters relating to the Canadian Dollar Term
Loan of any Lender, the percentage obtained by dividing (x) the Canadian
Dollar Term Loan Exposure of that Lender by (y) the aggregate Canadian
Dollar Term Loan Exposure of all Lenders, (iii) with respect to all payments,
computations and other matters relating to the Revolving Loan Commitment or the
Revolving Loans of any Lender or any Revolving Letters of Credit issued or
participations therein deemed purchased by any Lender or any assignments of any
Swing Line Loans deemed purchased by any Lender, the percentage obtained by
dividing (x) the Revolving Loan Exposure of that Lender by (y) the
aggregate Revolving Loan Exposure of all Lenders, (iv) with respect to all
payments, computations and other matters relating to the Synthetic Letter of
Credit Commitment or the Synthetic Letter of Credit Loans of any Synthetic
Letter of Credit Lender or any Synthetic Letters of Credit issued or
participations therein deemed purchased by any Synthetic Letter of Credit
Lender, the percentage obtained by dividing (x) the Synthetic Letter of
Credit Exposure of that Synthetic Letter of Credit Lender by (y) the
aggregate Synthetic Letter of Credit Exposure of all Lenders, and (v) for
all other purposes with respect to each Lender, the percentage obtained by
dividing (x) the sum of the Term Loan Exposure of that Lender plus
the Revolving Loan Exposure of that Lender plus the Synthetic Letter of
Credit Exposure of that Lender by (y) the sum of the aggregate Term Loan
Exposure of all Lenders plus the aggregate Revolving Loan Exposure of
all Lenders plus the aggregate Synthetic Letter of Credit Exposure of
all Lenders, in any such case as the applicable percentage may be adjusted by
assignments permitted pursuant to subsection 10.1.  The initial Pro Rata Share of each Lender as
of the Restatement Date for purposes of each of clauses (iii) and (iv) of
the preceding sentence is set forth opposite the name of that Lender on Schedule 2.1
annexed to this Agreement.

“PTO”
means the United States Patent and Trademark Office or any successor or
substitute office in which filings are necessary or, in the opinion of
Administrative Agent, desirable in order to create or perfect Liens on any IP
Collateral.

“Purchase
Money Indebtedness” means Indebtedness of Borrower or any other
Subsidiary of Borrower incurred in connection with the purchase of assets or
other property for the business of such Borrower or such Subsidiary for the
purposes of financing all or any part of the purchase price or cost of
construction or improvement of property, plant or equipment used in the
business of Borrower or such Subsidiary; provided that (x) the recourse
of the Lenders with respect to such Indebtedness is limited solely to such
Borrower or such Subsidiary, as the

28

case may be, (y)
the only Lien granted by such Borrower or such Subsidiary, as the case may be,
securing such Indebtedness (which amount shall not exceed 125% of the purchase
price of the asset or property (net of taxes and soft costs)) is on the assets
or other property so purchased (and the proceeds of such assets or other
property) and (z) such Indebtedness is without recourse to any other Loan
Party.

“Real
Property Asset” means, at any time of determination, any interest
then owned by any Loan Party in any real property.

“Reference Lender” means Credit Suisse.

“Refunded
Swing Line Loans” has the meaning assigned to that term in
subsection 2.1A(ii).

“Register”
has the meaning assigned to that term in subsection 2.1D.

“Regulation D”
means Regulation D of the Board of Governors of the Federal Reserve
System, as in effect from time to time.

“Related
Agreements” means, collectively, the Parent Certificate of
Incorporation, the Borrower Certificate of Incorporation, the Senior
Subordinated Note Indenture and any indenture governing any Permitted
Additional Subordinated Financing.

“Release”
means any release, spill, emission, leaking, pumping, pouring, injection,
escaping, deposit, disposal, discharge, dispersal, dumping, leaching or
migration of Hazardous Materials into the indoor or outdoor environment
(including the abandonment or disposal of any barrels, containers or other
closed receptacles containing any Hazardous Materials), including the movement
of any Hazardous Materials through the air, soil, surface water or groundwater.

“Repayable Net Asset Sale Proceeds” has the meaning
assigned to that term in subsection 2.4B(iii)(a).

“Request for
Issuance” means a request substantially in the form of Exhibit III
annexed hereto.

“Requisite
Class Lenders” means, at any time of determination, (i) for
Lenders holding Term Loans, Lenders holding more than 50% of the aggregate Term
Loan Exposure of all Lenders, (ii) for Lenders holding Revolving Loan
Commitments, Lenders holding more than 50% of the aggregate Revolving Loan
Exposure of all Lenders, and (iii) for Lenders holding Synthetic Letter of
Credit Commitments, Lenders holding more than 50% of the aggregate Synthetic
Letter of Credit Exposure of all Lenders.

“Requisite
Lenders” means Lenders having or holding more than 50% of the sum of
the aggregate Term Loan Exposure of all Lenders plus the aggregate
Revolving Loan Exposure of all Lenders plus the aggregate Synthetic
Letter of Credit Exposure of all Lenders.

 

29

 

“Restatement
Date” means [·], 2006.(4)

(4)  Effective date of IPO Amendments (as defined in the
Amendment Agreement) to be inserted.

 

“Restricted
Junior Payment” means (i) any dividend or other distribution,
direct or indirect, on account of any shares of any class of stock of Borrower
or Parent now or hereafter outstanding, except a dividend payable solely in
shares of that class of stock to the holders of that class, (ii) any
redemption, retirement, sinking fund or similar payment, purchase or other
acquisition for value, direct or indirect, of any shares of any class of stock
of Borrower or Parent now or hereafter outstanding, (iii) any payment made
to retire, or to obtain the surrender of, any outstanding warrants, options or
other rights to acquire shares of any class of stock of Borrower or Parent now
or hereafter outstanding, and (iv) any payment or prepayment of principal
of, premium, if any, or interest on, or redemption, purchase, retirement,
defeasance (including in-substance or legal defeasance), sinking fund or
similar payment with respect to, any Subordinated Indebtedness.

“Revolving Issuing Lender” means the
Revolving Lender that agrees or is otherwise obligated to issue such Revolving
Letter of Credit, determined as provided in subsection 3.1B(ii).

“Revolving LC Reimbursement
Date” has the meaning assigned to that term in
subsection 3.3B(i).

“Revolving
Lender” means a Lender that has a Revolving Loan Commitment and/or
that has an outstanding Revolving Loan.

“Revolving Letter of Credit” or “Revolving Letters of Credit” means
Commercial Letters of Credit and Standby Letters of Credit issued or to be
issued by Revolving Issuing Lenders for the account of Borrower pursuant to
subsection 3.1.

“Revolving Letter of Credit Usage” means, as
at any date of determination, the sum of (i) the maximum aggregate amount which
is or at any time thereafter may become available for drawing under all
Revolving Letters of Credit then outstanding plus (ii) the aggregate
amount of all drawings under Revolving Letters of Credit honored by Revolving
Issuing Lenders and not theretofore reimbursed out of the proceeds of Revolving
Loans pursuant to subsection 3.3B or otherwise reimbursed by Borrower.

“Revolving
Loan Commitment” means the commitment of a Revolving Lender to make
Revolving Loans to Borrower pursuant to subsection 2.1A(i), and “Revolving Loan Commitments” means such
commitments of all Revolving Lenders in the aggregate.

“Revolving
Loan Commitment Termination Date” means [·],
2011.(5)

(5)  Date
that is five years after the Restatement Date to be inserted.

“Revolving
Loan Exposure”, with respect to any Revolving Lender, means, as of
any date of determination (i) prior to the termination of the Revolving
Loan Commitments, that Lender’s Revolving Loan Commitment, and (ii) after
the termination of the Revolving Loan

30

Commitments, the
sum of (a) the aggregate outstanding principal amount of the Revolving
Loans of that Lender plus (b) in the event that Lender is a
Revolving Issuing Lender, the aggregate Revolving Letter of Credit Usage in
respect of all Revolving Letters of Credit issued by that Lender (in each case
net of any participations purchased by other Revolving Lenders in such Letters
of Credit or in any unreimbursed drawings thereunder) plus (c) the
aggregate amount of all participations purchased by that Revolving Lender in
any outstanding Revolving Letters of Credit or any unreimbursed drawings under
any Revolving Letters of Credit plus (d) in the case of Swing Line
Lender, the aggregate outstanding principal amount of all Swing Line Loans (net
of any assignments thereof purchased by other Revolving Lenders) plus
(e) the aggregate amount of all assignments purchased by that Lender in
any outstanding Swing Line Loans.

“Revolving
Loans” means the Loans made by Revolving Lenders to Borrower
pursuant to subsection 2.1A(i).

“Revolving
Notes” means (i) the promissory notes of Borrower issued
pursuant to subsection 2.1E and/or (ii) any promissory notes issued
by Borrower pursuant to the second to last sentence of subsection 10.1B(i)
in connection with assignments of the Revolving Loan Commitments and Revolving
Loans of any Revolving Lenders, in each case substantially in the form of Exhibit V
annexed hereto, as they may be amended, restated, supplemented or otherwise
modified from time to time.

“Schedule I
Lender” means any Canadian Dollar Term Lender named in Schedule I to
the Bank Act (Canada).

“Securities”
means any stock, shares, partnership interests, voting trust certificates,
certificates of interest or participation in any profit-sharing agreement or
arrangement, options, warrants, bonds, debentures, notes, or other evidences of
indebtedness, secured or unsecured, convertible, subordinated, certificated or
uncertificated, or otherwise, or in general any instruments commonly known as “securities”
or any certificates of interest, shares or participations in temporary or
interim certificates for the purchase or acquisition of, or any right to
subscribe to, purchase or acquire, any of the foregoing.

“Securities
Act” means the Securities Act of 1933, as amended from time to time,
and any successor statute.

“Security
Agreement” means the Security Agreement dated as of the Original
Closing Date, entered into by Borrower, Parent and the Subsidiary Guarantors in
favor of Administrative Agent for the benefit of Lenders, a copy of which is
attached as Exhibit XII hereto, as such Security Agreement may
thereafter be amended, restated, supplemented or otherwise modified from time
to time.

“Senior Subordinated Note Indenture” means
that certain Indenture dated as of
October 16, 2002, between Borrower, as issuer, and The Bank of New York Trust
Company of Florida, N.A., as trustee, as such Indenture may be amended,
restated, supplemented or otherwise modified from time to time to the extent
permitted under subsection 7.12.

31

“Senior
Subordinated Notes” means the 12% Senior Subordinated Notes due 2012
of Borrower, issued pursuant to the Senior Subordinated Note Indenture.

“Severance Costs” means, for any period,
recruitment costs, relocation expenses and other severance costs (including
related legal expenses) of Borrower and its Subsidiaries incurred in connection
with (i) a restructuring of the operations of Borrower and its Subsidiaries,
(ii) the Aluma Acquisition or (iii) a Permitted Acquisition; provided
that the calculation of any such Severance Costs shall be set forth in an
Officer’s Certificate in form and substance reasonably satisfactory to
Administrative Agent which shall be delivered to Administrative Agent, together
with its delivery of any financial statements required to be delivered pursuant
to subsection 6.1; and provided, further that the aggregate
amount of such Severance Costs shall not exceed $5,000,000 in any Fiscal Year.

“Solvent”,
with respect to any Person, means that as of the date of determination both
(i)(a) the then fair saleable value of the property of such Person is
(1) greater than the total amount of liabilities (including contingent
liabilities) of such Person and (2) not less than the amount that will be
required to pay the probable liabilities on such Person’s then existing debts
as they become absolute and due considering all financing alternatives and
potential asset sales reasonably available to such Person; (b) such Person’s
capital is not unreasonably small in relation to its business or any
contemplated or undertaken transaction; and (c) such Person does not
intend to incur, or believe (nor should it reasonably believe) that it will
incur, debts beyond its ability to pay such debts as they become due; and
(ii) such Person is “solvent” within the meaning given that term and
similar terms under applicable laws relating to fraudulent transfers and
conveyances.  For purposes of this
definition, the amount of any contingent liability at any time shall be
computed as the amount that, in light of all of the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability.

“SPC” has the meaning assigned to that term
in subsection 10.1B(iii).

“Specified
Equity Proceeds” means, with respect to any Net Equity Securities
Proceeds, the amount thereof minus the amount of the prepayment of Loans
required to be made pursuant to subsection 2.4B(iii)(c) in respect thereof; provided
that, with respect to any Net Equity Securities Proceeds received by Parent,
such Net Equity Securities Proceeds shall only constitute Specified Equity
Proceeds to the extent they shall have been contributed to Borrower by Parent.

“Specified
Ratings Condition” means Borrower shall have received a corporate
family rating of B1 or higher from Moody’s and an organization rating of B+ or
higher from S&P, in each case with no negative outlook (the “Specified Ratings”); provided that the Specified
Ratings Condition shall only remain satisfied for so long as (i) neither Moody’s
shall have reduced its corporate family rating, nor S&P shall have reduced
its organization rating, to a ratings category below the Specified Ratings (a “Ratings Event”) and (ii) neither Moody’s nor S&P shall
have withdrawn or otherwise ceased to publish its rating with respect to the
Borrower (a “Ratings Withdrawal”).

32

“Sponsor”
means JPMorgan Partners, LLC.

“Standby
Letter of Credit” means any standby letter of credit or similar
instrument issued for the purpose of supporting (i) Indebtedness of
Borrower or any of its Subsidiaries in respect of industrial revenue or
development bonds or financings, (ii) workers’ compensation liabilities of
Borrower or any of its Subsidiaries, (iii) the obligations of third party
insurers of Borrower or any of its Subsidiaries arising by virtue of the laws
of any jurisdiction requiring third party insurers, (iv) obligations with
respect to Capital Leases or Operating Leases of Borrower or any of its
Subsidiaries, and (v) performance, payment, deposit or surety obligations
of Borrower or any of its Subsidiaries, in any case if required by law or
governmental rule or regulation or in accordance with custom and practice in
the industry.

“Subordinated
Indebtedness” means the (i) Senior Subordinated Notes,
(ii) any Permitted Additional Subordinated Financing and (iii) any
other Indebtedness of Parent and its Subsidiaries incurred from time to time and
subordinated in right of payment to the Obligations.

“Subsidiary”,
with respect to any Person, means any corporation, partnership, trust, limited
liability company, association, Joint Venture or other business entity of which
more than 50% of the total voting power of shares of stock or other ownership
interests entitled (without regard to the occurrence of any contingency) to
vote in the election of the members of the Governing Body is at the time owned
or controlled, directly or indirectly, by that Person or one or more of the
other Subsidiaries of that Person or a combination thereof.

“Subsidiary
Guarantor” means any Domestic Subsidiary of Borrower that is a party
to the Subsidiary Guaranty on the Restatement Date and each Subsidiary that
becomes a party thereto after the Restatement Date pursuant to
subsection 6.8.

“Subsidiary
Guaranty” means the Subsidiary Guaranty dated as of the Original
Closing Date, entered into by the Subsidiary Guarantors party thereto in favor
of Administrative Agent for the benefit of Lenders (to be executed and
delivered by additional Subsidiaries of Borrower from time to time thereafter
in accordance with subsection 6.8), a copy of which is attached as Exhibit XI
hereto, as such Subsidiary Guaranty may be amended, restated, supplemented or
otherwise modified from time to time.

“Supplemental
Collateral Agent” has the meaning assigned to that term in
subsection 9.1B.

“Supplemental
Term Loan Commitment” means the commitment of a Lender to make a
Supplemental Term Loan to Borrower on the Restatement Date pursuant to
subsection 2.1A(iii), and “Supplemental Term Loan
Commitments” means such commitments of all Lenders in the aggregate.

“Supplemental
Term Loans” means the Loans made by Lenders to Borrower on the
Restatement Date pursuant to subsection 2.1A(iii).

33

“Swing Line
Lender” means Credit Suisse, or any Person serving as a successor
Administrative Agent hereunder, in its capacity as Swing Line Lender hereunder.

“Swing Line
Loan Commitment” means the commitment of Swing Line Lender to make
Swing Line Loans to Borrower pursuant to subsection 2.1A(ii).

“Swing Line
Loans” means the Loans made by Swing Line Lender to Borrower
pursuant to subsection 2.1A(ii).

“Swing Line
Note” means (i) the promissory note of Borrower issued pursuant
to subsection 2.1E and/or (ii) any promissory note issued by Borrower
to any successor Administrative Agent and Swing Line Lender pursuant to the
last sentence of subsection 9.5B, in each case substantially in the form
of Exhibit VI annexed hereto, as it may be amended, restated,
supplemented or otherwise modified from time to time.

“Syndication
Agent” means JPMorgan Chase Bank, N.A.

“Synthetic
Letter of Credit” or “Synthetic
Letters of Credit” means Standby Letters of Credit issued or to be
issued by Synthetic Letter of Credit Issuing Lenders pursuant to
subsection 3.1.

“Synthetic
Letter of Credit Commitment” means the commitment of a Synthetic
Letter of Credit Lender to acquire participations in Synthetic Letters of
Credit and make Synthetic Letter of Credit Loans pursuant to subsection
2.1A(iv), and “Synthetic Letter of Credit Commitments”
means such commitments of all Synthetic Letter of Credit Lenders in the
aggregate.

“Synthetic
Letter of Credit Exposure”, with respect to any Synthetic Letter of
Credit Lender, means, as of any date of determination (i) prior to the
termination of the Synthetic Letter of Credit Commitments, that Synthetic
Letter of Credit Lender’s Synthetic Letter of Credit Commitment, and (ii) after
the termination of the Synthetic Letter of Credit Commitments, the sum of
(a) the aggregate outstanding principal amount of the Synthetic Letter of
Credit Loans of that Synthetic Letter of Credit Lender plus (b) in
the event that Synthetic Letter of Credit Lender is a Synthetic Letter of
Credit Issuing Lender, the aggregate Synthetic Letter of Credit Usage in
respect of all Synthetic Letters of Credit issued by that Synthetic Letter of
Credit Lender (in each case net of any participations purchased by other
Synthetic Letter of Credit Lenders in such Synthetic Letters of Credit or in
any unreimbursed drawings thereunder) plus (c) the aggregate amount
of all participations purchased by that Synthetic Letter of Credit Lender in
any outstanding Synthetic Letters of Credit or any unreimbursed drawings under
any Synthetic Letters of Credit.

“Synthetic
Letter of Credit Facility Maturity Date” means January 15, 2012.

“Synthetic
Letter of Credit Issuing Lender” means the Synthetic Letter of
Credit Lender that agrees or is otherwise obligated to issue such Letter of
Credit, determined as provided in subsection 3.1B.

34

“Synthetic
Letter of Credit Lender” means a Lender that has a Synthetic Letter
of Credit Commitment and/or that has an outstanding Synthetic Letter of Credit
Loan.

“Synthetic
Letter of Credit Loans” means the loans deemed made by Synthetic
Letter of Credit Lenders to Borrower pursuant to subsection 3.3B and
subsection 3.3C.

“Synthetic
Letter of Credit Notes” means (i) the promissory notes of
Borrower issued pursuant to subsection 2.1E and/or (ii) any
promissory notes issued by Borrower pursuant to the second to last sentence of
subsection 10.1B(i) in connection with assignments of the Synthetic Letter
of Credit Commitments and Synthetic Letter of Credit Loans of any Synthetic
Letter of Credit Lenders, in each case substantially in the form of Exhibit VII
annexed hereto, as they may be amended, restated, supplemented or otherwise
modified from time to time.

“Synthetic
Letter of Credit Reimbursement Date” has the meaning assigned to
that term in subsection 3.3B(ii).

“Synthetic
Letter of Credit Usage” means, as at any date of determination, the
sum of (i) the maximum aggregate amount which is or at any time thereafter
may become available for drawing under all Synthetic Letters of Credit then
outstanding plus (ii) the aggregate amount of all drawings under
Synthetic Letters of Credit honored by Synthetic Letter of Credit Issuing
Lenders and not theretofore reimbursed by Borrower.

“Tax”
or “Taxes” means any present or
future tax, levy, impost, duty, charge, fee, deduction or withholding of any
nature and whatever called, by whomsoever, on whomsoever and wherever imposed,
levied, collected, withheld or assessed, including interest, penalties,
additions to tax and any similar liabilities with respect thereto; except that,
in the case of a Lender, there shall be excluded (i) taxes that are
imposed on the overall net income or net profits (including franchise taxes
imposed in lieu thereof) (a) by the United States, (b) by any other
Government Authority under the laws of which such Lender is organized or has
its principal office or maintains its applicable lending office, or (c) by
any jurisdiction solely as a result of a present or former connection between
such Lender and such jurisdiction (other than any such connection arising
solely from such Lender having executed, delivered or performed its obligations
or received a payment under, or enforced, any of the Loan Documents), and
(ii) any branch profits taxes imposed by the United States or any similar
tax imposed by any other jurisdiction in which such Lender is located.

“Term Loan
Exposure”, with respect to any Lender, means, as of any date of
determination, the outstanding principal amount of the Term Loans of that
Lender, with the aggregate principal amount of any Canadian Dollar Term Loan
being the Dollar Equivalent of such Loan.

“Term Loan Maturity Date” means
January 15, 2012.

“Term Lender”
means any Lender with an outstanding Term Loan.

35

 

“Term
Loans” means,
collectively, the Existing U.S. Dollar Term Loans and, unless the context shall
otherwise require, the Supplemental Term Loans, the Canadian Dollar Term Loans
and any Incremental Term Loan.

“Term Notes”
means (i) the promissory notes of Borrower issued pursuant to
subsection 2.1E and/or (ii) any promissory notes issued by Borrower
pursuant to the second to last sentence of subsection 10.1B(i) in
connection with assignments of the Term Loans of any Lenders, in each case
substantially in the form of Exhibit IV annexed hereto, as they may
be amended, restated, supplemented or otherwise modified from time to time.

“Title
Company” means one or more title insurance companies reasonably
satisfactory to Administrative Agent.

“Total Debt”
means, as at any date of determination, the aggregate stated balance sheet
amount of all Indebtedness of Borrower and its Subsidiaries, determined on a
consolidated basis in accordance with GAAP.

“Total
Utilization of Revolving Loan Commitments” means, as at any date of
determination, the sum of (i) the aggregate principal amount of all
outstanding Revolving Loans plus (ii) the aggregate principal
amount of all outstanding Swing Line Loans plus (iii) the Revolving
Letter of Credit Usage.

“Total
Utilization of Synthetic Letter of Credit Commitments” means, as at
any date of determination, the sum of (i) the aggregate principal amount
of all outstanding Synthetic Letter of Credit Loans plus (ii) the
Synthetic Letter of Credit Usage.

“Transaction
Costs” has the meaning assigned to that term in the preliminary
statements to this Agreement.

“Transactions”
has the meaning assigned to that term in the preliminary statements to this
Agreement.

“UCC”
means the Uniform Commercial Code as in effect in any applicable jurisdiction.

“Unfunded
Advances/Participations” means (i) with respect to
Administrative Agent, the aggregate amount, if any (a) made available to
Borrower on the assumption that each applicable Lender has made its portion of
the applicable Loan available to Administrative Agent as contemplated by
subsection 2.1C and (b) with respect to which a corresponding amount shall
not in fact have been made available to Administrative Agent by any such Lender
(other than the Administrative Agent in its capacity as a Lender), (ii) with
respect to the Swing Line Lender, the aggregate amount, if any, of
participations in respect of any outstanding Swing Line Loan that shall not
have been funded by the Revolving Lenders (other than the Administrative Agent
in its capacity as a Revolving Lender) in accordance with subsection 2.1A(i),
and (iii) with respect to any Issuing Lender, the aggregate amount, if any, of
participations in respect of any outstanding

36

Letter of Credit
disbursement that shall not have been funded by the applicable Lenders (other
than the Administrative Agent in its capacity as a Lender) in accordance with
subsection 3.3.

“U.S. Dollar Term
Loans” means the Existing U.S. Dollar Term Loans and the
Supplemental Term Loans.

“Working Capital” means, as at any date of determination,
the excess (or deficit) of Current Assets over Current Liabilities.

“Working Capital Adjustment” means, for any period on a consolidated
basis, the amount (which may be a negative number) by which Working Capital as
of the beginning of such period exceeds (or is less than) Working Capital as of
the end of such period.

1.2                               Accounting Terms;
Utilization of GAAP for Purposes of Calculations Under Agreement.

Except as otherwise
expressly provided in this Agreement, all accounting terms not otherwise
defined herein shall have the meanings assigned to them in conformity with
GAAP.  Financial statements and other information
required to be delivered by Borrower to Lenders pursuant to clauses (ii),
(iii) and (xii) of subsection 6.1 shall be prepared in accordance with
GAAP as in effect at the time of such preparation (and delivered together with
the reconciliation statements provided for in subsection 6.1(v)).  Calculations in connection with the
definitions, covenants and other provisions of this Agreement shall utilize
GAAP as in effect on the date of determination, applied in a manner consistent
with that used in preparing the financial statements referred to in
subsection 5.3.  If at any time any
change in GAAP would affect the computation of any financial ratio or
requirement set forth in any Loan Document, and Borrower, Administrative Agent
or Requisite Lenders shall so request, Administrative Agent, Lenders and
Borrower shall negotiate in good faith to amend such ratio or requirement to
preserve the original intent thereof in light of such change in GAAP (subject
to the approval of Requisite Lenders); provided that, until so amended,
such ratio or requirement shall continue to be computed in accordance with GAAP
prior to such change therein and Borrower shall provide to Administrative Agent
and Lenders reconciliation statements provided for in subsection 6.1(v).

1.3                               Other Definitional
Provisions and Rules of Construction.

A.    Any of the terms
defined herein may, unless the context otherwise requires, be used in the
singular or the plural, depending on the reference.

B.    References to “Sections”
and “subsections” shall be to Sections and subsections, respectively, of this
Agreement unless otherwise specifically provided.  Section and subsection headings in this
Agreement are included herein for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose or be given any
substantive effect.

C.    The use in any of the
Loan Documents of the word “include” or “including”, when following any general
statement, term or matter, shall not be construed to limit such

37

statement, term or matter to the
specific items or matters set forth immediately following such word or to
similar items or matters, whether or not nonlimiting language (such as “without
limitation” or “but not limited to” or words of similar import) is used with
reference thereto, but rather shall be deemed to refer to all other items or
matters that fall within the broadest possible scope of such general statement,
term or matter.

Section 2.              AMOUNTS AND TERMS OF COMMITMENTS AND LOANS

2.1                               Commitments; Making of
Loans; the Register; Notes; Bankers’ Acceptances.

A.            Commitments.  Subject to the terms and conditions of this
Agreement and in reliance upon the representations and warranties of Borrower
herein set forth, each Lender hereby severally agrees to make the Loans as
described in subsections 2.1A(i), 2.1A(iii), 2.1A(iv) and 2.1A(v) and
Swing Line Lender hereby agrees to make the Swing Line Loans as described in
subsection 2.1A(ii).

(i)            Revolving Loans.  Each Revolving Lender severally agrees,
subject to the limitations set forth below with respect to the maximum amount
of Revolving Loans permitted to be outstanding from time to time, to lend to
Borrower from time to time during the period from the Restatement Date to but
excluding the Revolving Loan Commitment Termination Date an aggregate amount
not exceeding its Pro Rata Share of the aggregate amount of the Revolving Loan
Commitments to be used for the purposes identified in subsection 2.5B. The
amount of each Revolving Lender’s Revolving Loan Commitment is set forth
opposite its name on Schedule 2.1 annexed hereto and the aggregate
amount of the Revolving Loan Commitments is $75,000,000; provided that
the Revolving Loan Commitments of Revolving Lenders shall be adjusted to give
effect to any assignments of the Revolving Loan Commitments pursuant to
subsection 10.1B and shall be reduced from time to time by the amount of
any reductions thereto made pursuant to subsection 2.4.  Each Revolving Lender’s Revolving Loan
Commitment shall expire on the Revolving Loan Commitment Termination Date and
all Revolving Loans and all other amounts owed hereunder with respect to the
Revolving Loans and the Revolving Loan Commitments shall be paid in full no
later than that date.  Amounts borrowed
under this subsection 2.1A(i) may be repaid and reborrowed to but
excluding the Revolving Loan Commitment Termination Date.

Anything contained in
this Agreement to the contrary notwithstanding, the Revolving Loans and the
Revolving Loan Commitments shall be subject to the limitation that in no event
shall the Total Utilization of Revolving Loan Commitments at any time exceed
the Revolving Loan Commitments then in effect.

(ii)           Swing
Line Loans.

(a)           General Provisions.  Swing Line Lender hereby agrees, subject to
the limitations set forth below with respect to the maximum amount of Swing
Line Loans permitted to be outstanding from time to time, to make a portion of
the Revolving Loan Commitments available to Borrower from time to time

 

38

during the period from
the Restatement Date to but excluding the Revolving Loan Commitment Termination
Date by making Swing Line Loans to Borrower in an aggregate amount not
exceeding the amount of the Swing Line Loan Commitment to be used for the
purposes identified in subsection 2.5B, notwithstanding the fact that such
Swing Line Loans, when aggregated with Swing Line Lender’s outstanding
Revolving Loans and Swing Line Lender’s Pro Rata Share of the Revolving Letter
of Credit Usage then in effect, may exceed Swing Line Lender’s Revolving Loan
Commitment.  The amount of the Swing Line
Loan Commitment is $15,000,000; provided that any reduction of the
Revolving Loan Commitments made pursuant to subsection 2.4 that reduces
the aggregate Revolving Loan Commitments to an amount less than the then
current amount of the Swing Line Loan Commitment shall result in an automatic
corresponding reduction of the Swing Line Loan Commitment to the amount of the
Revolving Loan Commitments, as so reduced, without any further action on the
part of Borrower, Administrative Agent or Swing Line Lender.  The Swing Line Loan Commitment shall expire
on the Revolving Loan Commitment Termination Date and all Swing Line Loans and
all other amounts owed hereunder with respect to the Swing Line Loans shall be
paid in full no later than that date. 
Amounts borrowed under this subsection 2.1A(ii) may be repaid and
reborrowed to but excluding the Revolving Loan Commitment Termination Date.

Anything contained
in this Agreement to the contrary notwithstanding, the Swing Line Loans and the
Swing Line Loan Commitment shall be subject to the limitation that in no event
shall the Total Utilization of Revolving Loan Commitments at any time exceed
the Revolving Loan Commitments then in effect.

(b)           Swing Line Loan Prepayment with
Proceeds of Revolving Loans.  With
respect to any Swing Line Loans that have not been voluntarily prepaid by
Borrower pursuant to subsection 2.4B(i), Swing Line Lender may, at any time
in its sole and absolute discretion, deliver to Administrative Agent (with a
copy to Borrower), no later than 10:00 A.M. (New York City time) on the
first Business Day in advance of the proposed Funding Date, a notice requesting
Revolving Lenders to make Revolving Loans that are Base Rate Loans on such
Funding Date in an amount equal to the amount of such Swing Line Loans (the “Refunded Swing Line Loans”) outstanding on the date such
notice is given.  Borrower hereby
acknowledges and agrees to the giving of such notice and approves the borrowing
of the Revolving Loans effected thereby. 
Anything contained in this Agreement to the contrary notwithstanding,
(1) the proceeds of such Revolving Loans made by Revolving Lenders other
than Swing Line Lender shall be immediately delivered by Administrative Agent
to Swing Line Lender (and not to Borrower) and applied to repay a corresponding
portion of the Refunded Swing Line Loans and (2) on the day such Revolving
Loans are made, Swing Line Lender’s Pro Rata Share of the Refunded Swing Line
Loans shall be deemed to be paid with the proceeds of a Revolving Loan made by
Swing Line Lender, and

 

39

such portion of the Swing
Line Loans deemed to be so paid shall no longer be outstanding as Swing Line
Loans and shall no longer be due under the Swing Line Note, if any, of Swing
Line Lender but shall instead constitute part of Swing Line Lender’s
outstanding Revolving Loans and shall be due under the Revolving Note, if any,
of Swing Line Lender.  Borrower hereby
authorizes Administrative Agent and Swing Line Lender to charge any accounts
Administrative Agent and/or Swing Line Lender may have in Borrower’s name (up
to the amount available in each such account) in order to immediately pay Swing
Line Lender the amount of the Refunded Swing Line Loans to the extent the
proceeds of such Revolving Loans made by Revolving Lenders, including the
Revolving Loan deemed to be made by Swing Line Lender, are not sufficient to
repay in full the Refunded Swing Line Loans. 
If any portion of any such amount paid (or deemed to be paid) to Swing
Line Lender should be recovered by or on behalf of Borrower from Swing Line
Lender in any bankruptcy proceeding, in any assignment for the benefit of
creditors or otherwise, the loss of the amount so recovered shall be ratably
shared among all Lenders in the manner contemplated by subsection 10.5.

(c)           Swing Line Loan Assignments.  If for any reason (1) Revolving Loans
are not made upon the request of Swing Line Lender as provided in the
immediately preceding paragraph in an amount sufficient to repay any amounts
owed to Swing Line Lender in respect of any outstanding Swing Line Loans or
(2) the Revolving Loan Commitments are terminated at a time when any Swing
Line Loans are outstanding, each Revolving Lender shall be deemed to, and
hereby agrees to, have purchased an assignment of such outstanding Swing Line
Loans in an amount equal to its Pro Rata Share (calculated, in the case of the
foregoing clause (2), immediately prior to such termination of the
Revolving Loan Commitments) of the unpaid amount of such Swing Line Loans
together with accrued interest thereon. 
Upon one Business Day’s notice from Swing Line Lender, each Revolving
Lender shall deliver to Swing Line Lender an amount equal to its respective
assignment in same day funds at the Funding and Payment Office.  In order to further evidence such assignment
(and without prejudice to the effectiveness of the assignment provisions set
forth above), each Revolving Lender agrees to enter into an Assignment
Agreement at the request of Swing Line Lender in form and substance reasonably
satisfactory to Swing Line Lender.  In
the event any Revolving Lender fails to make available to Swing Line Lender the
amount of such Revolving Lender’s assignment as provided in this paragraph,
Swing Line Lender shall be entitled to recover such amount on demand from such
Revolving Lender together with interest thereon at the rate customarily used by
Swing Line Lender for the correction of errors among banks for three Business
Days and thereafter at the Base Rate.  In
the event Swing Line Lender receives a payment of any amount in which other
Revolving Lenders have purchased assignments as provided in this paragraph,
Swing Line Lender shall promptly distribute to each such other Revolving Lender
its Pro Rata Share of such payment.

40

(d)           Revolving Lenders’ Obligations.  Anything contained herein to the contrary
notwithstanding, each Revolving Lender’s obligation to make Revolving Loans for
the purpose of repaying any Refunded Swing Line Loans pursuant to
subsection 2.1A(ii)(b) and each Revolving Lender’s obligation to purchase
an assignment of any unpaid Swing Line Loans pursuant to the immediately
preceding paragraph shall be absolute and unconditional and shall not be
affected by any circumstance, including (1) any set-off, counterclaim,
recoupment, defense or other right which such Revolving Lender may have against
Swing Line Lender, Borrower or any other Person for any reason whatsoever;
(2) the occurrence or continuation of an Event of Default or a Potential
Event of Default; (3) any adverse change in the business, operations,
properties, assets, condition (financial or otherwise) or prospects of Parent
or any of its Subsidiaries; (4) any breach of this Agreement or any other
Loan Document by any party thereto; or (5) any other circumstance,
happening or event whatsoever, whether or not similar to any of the foregoing; provided
that such obligations of each Revolving Lender are subject to the condition
that (x) Swing Line Lender believed in good faith that all conditions
under Section 4 to the making of the applicable Refunded Swing Line Loans
or other unpaid Swing Line Loans, as the case may be, were satisfied at the
time such Refunded Swing Line Loans or unpaid Swing Line Loans were made or
(y) the satisfaction of any such condition not satisfied had been waived
in accordance with subsection 10.6 prior to or at the time such Refunded
Swing Line Loans or other unpaid Swing Line Loans were made.

(iii)          Supplemental Term Loans.  Each Lender that has a Supplemental Term Loan
Commitment severally agrees to lend to Borrower on the Restatement Date an
amount in Dollars not exceeding the amount of its Supplemental Term Loan
Commitment to be used for the purposes identified in subsection 2.5A.  The amount of each Lender’s Supplemental Term
Loan Commitment is set forth opposite its name on Schedule 2.1
annexed hereto and the aggregate amount of the Supplemental Term Loan
Commitments is $100,000,000.  Each Lender’s
Supplemental Term Loan Commitment shall expire immediately and without further
action on September 30, 2006 if the Supplemental Term Loans are not made on or
before that date.  Borrower may make only
one borrowing under the Supplemental Term Loan Commitments.  Supplemental Term Loans which are
subsequently repaid or prepaid may not be reborrowed.

(iv)          Synthetic Letter of Credit
Commitment.  Each Synthetic Letter of
Credit Lender severally agrees, subject to the limitations set forth in
subsection 3.1A with respect to the Total Utilization of Synthetic Letter
of Credit Commitments, (i) to acquire participations in Synthetic Letters
of Credit pursuant to subsection 3.1C and (ii) to make Synthetic
Letter of Credit Loans to Borrower pursuant to subsection 3.3B(ii) from
time to time during the period from the Restatement Date to (with respect to
Synthetic Letter of Credit Loans) but excluding the Synthetic Letter of Credit
Facility Maturity Date in an aggregate amount not exceeding its Pro Rata Share
of the aggregate amount of the Synthetic Letter of Credit Commitments to be
used for the purposes identified in subsection 2.5B.  The aggregate amount of the Synthetic Letter
of Credit Commitments is

41

$35,000,000; provided
that the Synthetic Letter of Credit Commitments of Synthetic Letter of Credit
Lenders shall be adjusted to give effect to any assignments of the Synthetic
Letter of Credit Loan Commitments pursuant to subsection 10.1B and shall
be reduced from time to time by the amount of any reductions thereto made
pursuant to subsection 2.4.  Each
Synthetic Letter of Credit Lender’s Synthetic Letter of Credit Commitment shall
expire on the Synthetic Letter of Credit Facility Maturity Date and all
Synthetic Letter of Credit Loans and all other amounts owed hereunder with
respect to the Synthetic Letter of Credit Loans and the Synthetic Letter of
Credit Commitments shall be paid in full no later than that date.  Synthetic Letter of Credit Loans may be
prepaid from time to time pursuant to subsection 2.4B(i) without reducing
the Synthetic Letter of Credit Commitments; provided, however,
that the amount of each such prepayment shall be applied to replenish the
Credit-Linked Deposits in accordance with subsection 2.4 except to the
extent that a voluntary reduction of the Synthetic Letter of Credit Commitments
is made simultaneously with such prepayment; and provided  further
that Synthetic Letter of Credit Loans may not be reborrowed except pursuant to
subsection 3.3B(ii).

(v)           Incremental Term Loan Commitment.  Each Lender having an Incremental Term Loan
Commitment, severally and not jointly, hereby agrees, subject to the terms and
conditions and relying upon the representations and warranties set forth herein
and in the applicable Incremental Term Loan Assumption Agreement, to make
Incremental Term Loans to Borrower, in Dollars in an aggregate principal amount
not to exceed its Incremental Term Loan Commitment.  Amounts paid or prepaid in respect of
Incremental Term Loans may not be reborrowed.

B.            Borrowing
Mechanics.  Term Loans or
Revolving Loans made on any Funding Date (other than Revolving Loans made
pursuant to a request by Swing Line Lender pursuant to subsection 2.1A(i)
or Revolving Loans made pursuant to subsection 3.3B) shall be in an
aggregate minimum amount of (a) for Term Loans, $2,500,000 and multiples
of $500,000 in excess of that amount (except with respect to any borrowing of
Incremental Term Loans, to the extent otherwise provided in the related
Incremental Term Loan Assumption Agreement) and (b) for Revolving Loans,
$2,000,000 and multiples of $500,000 in excess of that amount.  Swing Line Loans made on any Funding Date
shall be in an aggregate minimum amount of $500,000 and multiples of $100,000
in excess of that amount.  Whenever
Borrower desires that Lenders make Term Loans or Revolving Loans it shall
deliver to Administrative Agent a duly executed Notice of Borrowing no later
than 12:00 Noon (New York City time) at least three Business Days in advance of
the proposed Funding Date (in the case of a LIBOR Rate Loan) or at least one
Business Day in advance of the proposed Funding Date (in the case of a Base
Rate Loan).  Whenever Borrower desires
that Swing Line Lender make a Swing Line Loan, it shall deliver to Swing Line
Lender, with a copy to Administrative Agent, a duly executed Notice of
Borrowing no later than 12:00 Noon (New York City time) on the proposed Funding
Date.  Term Loans and Revolving Loans may
be continued as or converted into Base Rate Loans, Canadian Prime Rate Loans,
LIBOR Rate Loans and/or BA Loans in the manner provided in
subsection 2.2D.  In lieu of
delivering a Notice of Borrowing, Borrower may give Administrative Agent
telephonic notice by the required time of any proposed borrowing under this
subsection 2.1B; provided that such

 

42

notice shall be promptly confirmed in writing by delivery
of a duly executed Notice of Borrowing to Administrative Agent on or before the
applicable Funding Date.

Neither Administrative
Agent nor any Lender shall incur any liability to Borrower in acting upon any
telephonic notice referred to above that Administrative Agent believes in good
faith to have been given by an Officer or other person authorized to borrow on
behalf of Borrower or for otherwise acting in good faith under this subsection 2.1B
or under subsection 2.2D, and upon funding of Loans by Lenders, and upon
conversion or continuation of the applicable basis for determining the interest
rate with respect to any Loans pursuant to subsection 2.2D, in each case
in accordance with this Agreement, pursuant to any such telephonic notice
Borrower shall have effected Loans or a conversion or continuation, as the case
may be, hereunder.

Borrower shall notify
Administrative Agent prior to the funding of any Loans in the event that any of
the matters to which Borrower is required to certify in the applicable Notice
of Borrowing is no longer true and correct as of the applicable Funding Date,
and the acceptance by Borrower of the proceeds of any Loans shall constitute a
re-certification by Borrower, as of the applicable Funding Date, as to the
matters to which Borrower is required to certify in the applicable Notice of
Borrowing.

Except as otherwise
provided in subsections 2.6B, 2.6C and 2.6G, a Notice of Borrowing for, or
a Notice of Conversion/Continuation for conversion to, or continuation of, a
LIBOR Rate Loan or a BA Loan (or telephonic notice in lieu thereof) shall be
irrevocable, and Borrower shall be bound to make a borrowing or to effect a
conversion or continuation in accordance therewith.

C.    Disbursement
of Funds.  All Loans (other
than Swing Line Loans) shall be made by Lenders simultaneously and
proportionately to their respective Pro Rata Shares, it being understood that
neither Administrative Agent nor any Lender shall be responsible for any
default by any other Lender in that other Lender’s obligation to make a Loan
requested hereunder nor shall the Commitment of any Lender to make the
particular type of Loan requested be increased or decreased as a result of a
default by any other Lender in that other Lender’s obligation to make a Loan
requested hereunder.  Promptly after
receipt by Administrative Agent of a Notice of Borrowing pursuant to
subsection 2.1B (or telephonic notice in lieu thereof), Administrative
Agent shall notify each Lender for that type of Loan of the proposed
borrowing.  Each such Lender shall make
the amount of its Loan available to Administrative Agent not later than 2:00
P.M. (New York City time) on the applicable Funding Date, in same day funds in
Dollars, at the Funding and Payment Office. 
Except as provided in subsection 2.1A(ii) or subsection 3.3B
with respect to Revolving Loans used to repay Refunded Swing Line Loans or to
reimburse any Revolving Issuing Lender or Synthetic Letter of Credit Lender, as
the case may be, for the amount of a drawing under a Revolving Letter of Credit
or Synthetic Letter of Credit, as the case may be, issued by it and with
respect to any Swing Line Loans, upon satisfaction or waiver of the conditions
precedent specified in subsections 4.1 (in the case of Loans made on the
Restatement Date) and 4.2 (in the case of all Loans), Administrative Agent
shall make the proceeds of such Loans available to Borrower on the applicable
Funding Date, in same day funds in Dollars equal to the proceeds of all such
Loans received by Administrative Agent from Lenders.  In the case of

 

43

Swing Line Loans, upon satisfaction
or waiver of the conditions precedent specified in subsection 4.2, Swing Line
Lender shall make the amount of its Swing Line Loan available to Borrower not
later than 2:00 P.M. (New
York City time) on the applicable Funding Date, in same day funds in Dollars
and pursuant to the instructions in the Notice of Borrowing for such Swing Line
Loan.

Unless Administrative
Agent shall have been notified by any Lender prior to a Funding Date for any
Loans that such Lender does not intend to make available to Administrative
Agent the amount of such Lender’s Loan requested on such Funding Date, Administrative
Agent may assume that such Lender has made such amount available to
Administrative Agent on such Funding Date and Administrative Agent may, in its
sole discretion, but shall not be obligated to, make available to Borrower a
corresponding amount on such Funding Date. 
If such corresponding amount is not in fact made available to
Administrative Agent by such Lender, Administrative Agent shall be entitled to
recover such corresponding amount on demand from such Lender together with
interest thereon, for each day from such Funding Date until the date such
amount is paid to Administrative Agent, at the customary rate set by
Administrative Agent for the correction of errors among banks for three
Business Days and thereafter at the Base Rate. 
If such Lender does not pay such corresponding amount forthwith upon
Administrative Agent’s demand therefor, Administrative Agent shall promptly
notify Borrower and Borrower shall immediately pay such corresponding amount to
Administrative Agent together with interest thereon, for each day from such
Funding Date until the date such amount is paid to Administrative Agent, at the
rate payable under this Agreement for Base Rate Loans.  Nothing in this subsection 2.1C shall be
deemed to relieve any Lender from its obligation to fulfill its Commitments
hereunder or to prejudice any rights that Borrower may have against any Lender
as a result of any default by such Lender hereunder.

D.    The Register. Administrative
Agent, acting solely for these purposes as an agent of Borrower (it being
acknowledged that Administrative Agent, in such capacity, and its officers,
directors, employees, agent and affiliates shall constitute Indemnitees under
subsection 10.3), shall maintain (and
make available for inspection by Borrower and Lenders upon reasonable prior
notice at reasonable times) at its address referred to in subsection 10.8
a register for the recordation of, and shall record, the name and address of
each Lender, and the Commitments and Loans of each Lender from time to time (the
“Register”).  Borrower, Administrative Agent and Lenders
shall deem and treat the Persons listed as Lenders in the Register as the
holders and owners of the corresponding Commitments and Loans listed therein
for all purposes hereof; all amounts owed with respect to any Commitment or
Loan shall be owed to the Lender listed in the Register as the owner thereof;
and any request, authority or consent of any Person who, at the time of making
such request or giving such authority or consent, is listed in the Register as
a Lender shall be conclusive and binding on any subsequent holder, assignee or
transferee of the corresponding Commitments or Loans.  Each Lender shall record on its internal
records (and make available for inspection by Administrative Agent upon
reasonable prior notice) the amount of its Loans and Commitments and each
payment in respect hereof, and any such recordation shall be conclusive and
binding on Borrower, absent manifest error, subject to the entries in the
Register, which shall, absent manifest error, govern in the event of any
inconsistency with any Lender’s records. 
Failure to make any recordation in the Register

 

44

or in any Lender’s records, or any error in such recordation, shall not
affect any Loans or Commitments or any Obligations in respect of any Loans.

E.     Notes.  At the request of any Lender,
Borrower shall execute and deliver  on the Restatement Date and from time
to time thereafter (or as required by subsection 10.1B(i)), (i) to
such Lender (1) if such Lender holds a Term Loan, a Term Note
substantially in the form of Exhibit IV annexed hereto to evidence
such Lender’s Term Loan and with other appropriate insertions, (2) if such
Lender holds a Revolving Loan Commitment, a Revolving Note substantially in the
form of Exhibit V annexed hereto to evidence such Lender’s
Revolving Loans, in the principal amount of such Lender’s Revolving Loan
Commitment and with other appropriate insertions, and (3) if such Lender holds
a Synthetic Letter of Credit Commitment, a Synthetic Letter of Credit Note
substantially in the form of Exhibit VII annexed hereto to evidence
such Lender’s Synthetic Letter of Credit Loans, in the principal amount of such
Lender’s Synthetic Letter of Credit Commitment, and (ii) to the Swing Line
Lender, if the requesting Lender is the Swing Line Lender, a Swing Line Note
substantially in the form of Exhibit VI annexed hereto to evidence
the Swing Line Lender’s Swing Line Loans, in the principal amount of the Swing
Line Loan Commitment and with other appropriate insertions.

F.     Bankers’ Acceptances.

(i)            Administrative Agent, promptly
following receipt of a Notice of Conversion/Continuation requesting BA Loans,
shall advise each Canadian Dollar Term Lender of the face or principal amount
and term of each BA Loan to be accepted (and purchased) or advanced by it.  The aggregate face or principal amount of BA
Loans to be accepted or advanced by a Canadian Dollar Term Lender shall be determined
by Administrative Agent by reference to such Canadian Dollar Term Lender’s Pro
Rata Share of the issue or advance of BA Loans, except that the aggregate face
amount of Bankers’ Acceptances to be accepted by the Canadian Dollar Term
Lenders shall be increased or reduced by Administrative Agent in its sole
discretion as may be necessary to ensure that the face amount of the Bankers’
Acceptance to be accepted by each applicable Canadian Dollar Term Lender would
be C$100,000 or a whole multiple thereof. 
For greater certainty, the foregoing requirement for a minimum face
amount and a whole multiple of C$100,000 shall not apply to BA Equivalent
Loans.

(ii)           On the date specified in a Notice of
Conversion/Continuation on which a BA Loan is to be made, Administrative Agent
shall advise Borrower as to Administrative Agent’s determination of the BA
Discount Rate for the BA Loans to be purchased or advanced, as the case may be.

(iii)          Borrower shall issue and each Canadian
Dollar Term Lender shall accept and subsequently purchase the Bankers’
Acceptance accepted by it at the applicable BA Discount Rate.  Subject to clause (iv) below, each Canadian
Dollar Term Lender shall provide Administrative Agent, for the account of
Borrower, the BA Discount Proceeds less the Applicable Stamping Fee payable by
Borrower with respect to the Bankers’ Acceptance.

 

45

(iv)          In the event Borrower requests a
continuation of BA Loans for a further Interest Period, or requests conversion
from Canadian Prime Rate Loans into BA Loans in accordance with Section 2.2D,
Administrative Agent shall make arrangements satisfactory to it to ensure the
BA Discount Proceeds from the replacement BA Loans are applied to repay the
face amount of the maturing BA Loans or the principal amount of such loans to
be converted (the “Maturing Amount”)
and Borrower shall concurrently pay to Administrative Agent any positive
difference between the Maturing Amount and such BA Discount Proceeds.

(v)           Each Canadian Dollar Term Lender may
from time to time hold, sell, rediscount or otherwise dispose of any or all
Bankers’ Acceptances accepted and purchased by it.

(vi)          In order to facilitate the issuance of
Bankers’ Acceptances pursuant to this Agreement, Borrower hereby authorizes
each of the Canadian Dollar Term Lenders, and appoints each of the Canadian
Dollar Term Lenders as Borrower’s attorney, to complete, sign and endorse
drafts or depository bills (as defined in the Depository
Bills and Notes Act (Canada) (each such executed draft or bill being
herein referred to as a “Draft”) on its
behalf in handwritten form or by facsimile or mechanical signature or otherwise
in accordance with the applicable Notice of Conversion/Continuation and, once
so completed, signed and endorsed to accept them as Bankers’ Acceptances under
this Agreement and then if applicable, purchase, discount or negotiate such
Bankers’ Acceptances in accordance with the provisions of this Agreement.  Drafts so completed, signed, endorsed and
negotiated on behalf of Borrower by a Canadian Dollar Term Lender shall bind
Borrower as fully and effectively as if so performed by an authorized Officer
of Borrower.  Each draft of a Bankers’
Acceptance completed, signed or endorsed by a Canadian Dollar Term Lender shall
mature on the last day of the term thereof. 
All Bankers’ Acceptances to be accepted by a particular Canadian Dollar
Term Lender shall, at the option of such Canadian Dollar Term Lender, be issued
in the form of depository bills made payable originally to and deposited with
The Depository for Securities Limited pursuant to the Depository
Bills and Notes Act (Canada).

(vii)         Any Drafts to be used for Bankers’
Acceptances which are held by a Canadian Dollar Term Lender shall be held in
safekeeping with the same degree of care as if they were such Canadian Dollar
Term Lender’s own property being kept at the place at which they are to be
held.  Borrower may, by written notice to
Administrative Agent, designate persons other than authorized Officers
authorized to give Administrative Agent instructions regarding the manner in
which Drafts are to be completed and the times at which they are to be issued; provided,
however, that receipt by Administrative Agent of a Notice of
Conversion/Continuation requesting an advance or continuation into, Bankers’
Acceptances shall be deemed to be sufficient authority from authorized Officers
or such designated persons for each of the Canadian Dollar Term Lenders to
complete, and issue drafts in accordance with such notice.  None of Administrative Agent or the Canadian
Dollar Term Lenders nor any of their respective directors, officers, employees
or representatives shall be liable for any action taken or omitted to be taken
by any of them

46

under this Section
2.1F(vii) except for their own respective gross negligence or willful
misconduct as determined by a final judgment of a court of competent
jurisdiction.

(viii)        Borrower waives presentment for payment
and any other defense to the payment of any amounts due to a Canadian Dollar
Term Lender in respect of a Bankers’ Acceptance accepted and purchased by it
pursuant to this Agreement which might exist solely by reason of the Bankers’
Acceptance being held, at the maturity thereof, by the Canadian Dollar Term
Lender in its own right and Borrower agrees not to claim any days of grace if
the Canadian Dollar Term Lender as holder sues Borrower on the Bankers’
Acceptance for payment of the amount payable by Borrower thereunder.  Each Bankers’ Acceptance shall mature and the
face amount thereof shall be due and payable on the last day of the Interest
Period applicable thereto.

(ix)           Whenever Borrower requests a Canadian
Dollar Term Loan under this Agreement by way of Bankers’ Acceptances, each
Non-Acceptance Lender shall, in lieu of accepting a Bankers’ Acceptance, make a
BA Equivalent Loan by way of Discount Note in an amount equal to the
Non-Acceptance Lender’s Pro Rata Share of the BA Loan.  All terms of this Agreement applicable to
Bankers’ Acceptances and Drafts shall apply equally to Discount Notes
evidencing BA Equivalent Loans with such changes as may in the context be
necessary.  For greater certainty:

(a)           the term of a Discount Note shall be
the same as the Interest Period for Bankers’ Acceptances accepted on the same
date of the Borrowing in respect of the same BA Loan;

(b)           an acceptance fee will be payable in
respect of a Discount Note and shall be calculated at the same rate and in the
same manner as the Applicable Stamping Fee in respect of a Bankers’ Acceptance;
and

(c)           the proceeds from a BA Equivalent
Loan shall be equal to the BA Discount Proceeds of the Discount Note.

2.2                               Interest on the Loans.

A.            Rate of Interest.  Subject to the provisions of
subsections 2.6 and 2.7, each Loan (other than a Swing Line Loan or a BA
Loan) shall bear interest on the unpaid principal amount thereof from the date
made through maturity (whether by acceleration or otherwise) at a rate
determined by reference to the Base Rate, the Canadian Prime Rate or the
Adjusted LIBOR Rate.  Subject to the
provisions of subsection 2.7, each Swing Line Loan shall bear interest on
the unpaid principal amount thereof from the date made through maturity
(whether by acceleration or otherwise) at a rate determined by reference to the
Base Rate.  Subject to the provisions of
subsections 2.6 and 2.7, the interest component in respect of each BA Loan
shall be as provided in subsection 2.2A(iii). 
The applicable basis for determining the rate of interest with respect
to any Term Loan or any Revolving Loan shall be selected by Borrower
initially at the time a Notice of Borrowing is given with respect to such Loan
pursuant to subsection 2.1B, and the basis for determining the interest
rate with respect to any Term Loan

47

or any Revolving Loan may be changed from time to time
pursuant to subsection 2.2D.  If on
any day a Term Loan or a Revolving Loan is outstanding with respect to
which notice has not been delivered to Administrative Agent in accordance with
the terms of this Agreement specifying the applicable basis for determining the
rate of interest, then for that day that Loan shall bear interest determined by
reference to the Base Rate or the Canadian Prime Rate, as applicable.

(i)            Subject to the provisions of subsections 2.2E,
2.2G and 2.7, the Revolving Loans shall bear interest through maturity as
follows:

(a)           if a Base Rate Loan, then at the sum
of the Base Rate plus the Base Rate Margin; or

(b)           if a LIBOR Rate Loan, then at the sum
of the Adjusted LIBOR Rate plus the LIBOR Rate Margin.

(ii)           Subject to the provisions of
subsections 2.2E, 2.2G and 2.7, the U.S. Dollar Term Loans and the Synthetic
Letter of Credit Loans shall bear interest through maturity (a) if a Base
Rate Loan, then at the sum of the Base Rate plus the Base Rate Margin or
(b) if a LIBOR Rate Loan, then at the sum of the Adjusted LIBOR Rate plus
the LIBOR Rate Margin.

(iii)          Subject to the provisions of
subsections 2.2E, 2.2G and 2.7, (a) Canadian Dollar Term Loans that are
Canadian Prime Rate Loans shall bear interest through maturity at the sum of
the Canadian Prime Rate plus 2.25%, and (b) in respect of Canadian
Dollar Term Loans that are BA Loans Borrower shall pay to each Canadian Dollar
Term Lender that accepts or advances a BA Loan, as a condition of and at the
time of such acceptance or advance, a fee at the rate of the then Applicable
Stamping Fee calculated on the basis of a year of 365 days on the face
amount at maturity (or the principal amount in the case of a BA Equivalent Loan)
of such Bankers’ Acceptance for the period from and including the date of
acceptance (or advance in the case of a BA Equivalent Loan) of such Bankers’
Acceptance for the period from and including the date of acceptance to but
excluding the maturity date of such Bankers’ Acceptance.

(iv)          Notwithstanding anything in this
Agreement to the contrary, the Specified Ratings Condition shall in no event be
considered to be or remain satisfied (a) after an Event of Default shall have
occurred and be continuing or (b) following the first Business Day after the
occurrence of a Ratings Event or a Ratings Withdrawal.  If the rating system of Moody’s or S&P
shall change, or if either such rating agency shall cease to be in the business
of providing corporate credit ratings, Borrower and the applicable Lenders
shall negotiate in good faith to amend the definition of the term “Specified
Ratings Condition” to reflect such changed rating system, or the unavailability
of ratings from such rating agency and, pending the effectiveness of any such
amendment, each of the Base Rate Margin and the LIBOR Rate Margin shall be
determined without regard to whether or not the Specified Ratings Condition
shall have been satisfied.

48

(v)           Subject to the provisions of
subsections 2.2E, 2.2G and 2.7, the Swing Line Loans shall bear interest
through maturity at the sum of the Base Rate plus the applicable Base
Rate Margin for Revolving Loans.

B.    Interest
Periods.  In connection with
each LIBOR Rate Loan and BA Loan, Borrower may, pursuant to the applicable
Notice of Borrowing or Notice of Conversion/Continuation, as the case may be,
select an interest period (each an “Interest Period”) to be applicable to
such Loan, which Interest Period shall be, at Borrower’s option, (a) in respect
of LIBOR Rate Loans, either a one, two, three or six month period (or a nine or
twelve month period if, at the time of the relevant LIBOR Rate Loan, all
Lenders participating therein agree to make an interest period of such duration
available) and (b) in respect of BA Loans, either a one, two, three or six
month period (in each case subject to availability); provided that:

(i)            the initial Interest Period for any
LIBOR Rate Loan or BA Loan shall commence on the Funding Date in respect of
such Loan, in the case of a Loan initially made as a LIBOR Rate Loan or BA
Loan, as applicable, or on the date specified in the applicable Notice of
Conversion/Continuation, in the case of a Loan converted to a LIBOR Rate Loan
or BA Loan, as applicable;

(ii)           in the case of immediately successive
Interest Periods applicable to a LIBOR Rate Loan or BA Loan continued as such
pursuant to a Notice of Conversion/Continuation, each successive Interest
Period shall commence on the day on which the next preceding Interest Period
expires;

(iii)          if an Interest Period for a LIBOR Rate
Loan would otherwise expire on a day that is not a Business Day, such Interest
Period shall expire on the next succeeding Business Day; provided that,
if any Interest Period would otherwise expire on a day that is not a Business
Day but is a day of the month after which no further Business Day occurs in
such month, such Interest Period shall expire on the next preceding Business
Day;

(iv)          no BA Loan shall mature on a day which
is not a Business Day and if any Interest Period for a BA Loan would otherwise
expire on a day that is not a Business Day, such Interest Period shall expire
on the next succeeding Business Day;

(v)           if Borrower fails to provide a Notice
of Conversion/Continuation in respect of BA Loans within the time period
required in subsection 2.2D, such BA Loans shall automatically be converted
into Canadian Prime Rate Loans on the last day of the Interest Period
applicable thereto;

(vi)          any Interest Period for a LIBOR Rate
Loan that begins on the last Business Day of a calendar month (or on a day for
which there is no numerically corresponding day in the calendar month at the
end of such Interest Period) shall, subject to clause (v) of this
subsection 2.2B, end on the last Business Day of a calendar month;

49

(vii)         no Interest Period with respect to any
portion of the Term Loans shall extend beyond the Term Loan Maturity Date and
no Interest Period with respect to any portion of the Revolving Loans shall
extend beyond the Revolving Loan Commitment Termination Date;

(viii)        no Interest Period with respect to any
type of Term Loans shall extend beyond a date on which Borrower is
required to make a scheduled payment of principal of such type of
Term Loans, unless the sum of (a) the aggregate principal amount of
such type of Term Loans that are Base Rate Loans plus (b) the
aggregate principal amount of such type of Term Loans that are LIBOR Rate
Loans with Interest Periods expiring on or before such date equals or exceeds
the principal amount required to be paid on such type of Term Loans on
such date;

(ix)           no Interest Period with respect to
any portion of the Revolving Loans shall extend beyond the date on which a
permanent reduction of the Revolving Loan Commitments is scheduled to occur
unless the sum of (a) the aggregate principal amount of Revolving Loans
that are Base Rate Loans plus (b) the aggregate principal amount of
Revolving Loans that are LIBOR Rate Loans with Interest Periods expiring on or
before such date plus (c) the excess of the Revolving Loan
Commitments then in effect over the aggregate principal amount of Revolving
Loans then outstanding equals or exceeds the permanent reduction of the
Revolving Loan Commitments that is scheduled to occur on such date;

(x)            there shall be no more than 12
Interest Periods outstanding at any time; and

(xi)           in the event Borrower fails to
specify an Interest Period for any LIBOR Rate Loan or BA Loan in the applicable
Notice of Borrowing or Notice of Conversion/Continuation, Borrower shall be
deemed to have selected an Interest Period of one month or 30 days, as
applicable.

C.    Interest
Payments.  Subject to the
provisions of subsection 2.2E, interest on each Loan shall be payable in
arrears on and to each Interest Payment Date applicable to that Loan, upon any
prepayment of that Loan (to the extent accrued on the amount being prepaid) and
at maturity (including final maturity); provided that in the event any
Swing Line Loans or any Revolving Loans that are Base Rate Loans are prepaid
pursuant to subsection 2.4B(i), interest accrued on such Loans through the
date of such prepayment shall be payable on the next succeeding Interest
Payment Date applicable to Base Rate Loans (or, if earlier, at final maturity).

D.    Conversion
or Continuation.  Subject to the
provisions of subsection 2.6, Borrower shall have the option (i) to
convert at any time all or any part of its outstanding Term Loans, Synthetic
Letter of Credit Loans or Revolving Loans equal to the Dollar Equivalent of
$2,500,000 and multiples of the Dollar Equivalent of $500,000 in excess of that
amount from Loans bearing interest at a rate determined by reference to one
basis to Loans bearing interest at a rate determined by reference to an
alternative basis or (ii) upon the expiration of any Interest Period
applicable to a LIBOR Rate Loan or a BA Loan, to continue all or any portion of
such

50

Loan equal to the Dollar Equivalent
of $2,500,000 and multiples of the Dollar Equivalent of $500,000 in excess of
that amount as a LIBOR Rate Loan or a BA Loan; provided, however,
that a LIBOR Rate Loan may only be converted into a Base Rate Loan and a BA
Loan may only be converted into a Canadian Prime Rate Loan on the expiration
date of an Interest Period applicable thereto.

Borrower shall deliver a
duly executed Notice of Conversion/Continuation to Administrative Agent no
later than 12:00 Noon (New York City time) at least one Business Day in advance
of the proposed conversion date (in the case of a conversion to a Base Rate
Loan or a Canadian Prime Rate Loan) and at least three Business Days in advance
of the proposed conversion/continuation date (in the case of a conversion to,
or a continuation of, a LIBOR Rate Loan or a BA Loan).  In lieu of delivering a Notice of
Conversion/Continuation, Borrower may give Administrative Agent telephonic
notice by the required time of any proposed conversion/continuation under this
subsection 2.2D; provided that such notice shall be promptly
confirmed in writing by delivery of a duly executed Notice of
Conversion/Continuation to Administrative Agent on or before the proposed
conversion/continuation date.  Upon
receipt of written or telephonic notice of any proposed conversion/continuation
under this subsection 2.2D, Administrative Agent shall promptly notify
each applicable Lender of the Loan subject to the Notice of
Conversion/Continuation.

E.     Default
Rate.  If any principal of or interest
on any Loan or any fees or other amount payable by Borrower hereunder is not
paid when due, whether at stated maturity, upon acceleration or otherwise, such
overdue amount shall thereafter bear interest (including post-petition interest
in any proceeding under the Bankruptcy Code or other applicable bankruptcy
laws) payable upon demand at a rate that is 2% per annum in excess of the
interest rate otherwise payable under this Agreement with respect to the
applicable Loans (or, in the case of any such fees and other amounts, at a rate
which is 2% per annum in excess of the interest rate otherwise payable under
this Agreement for Base Rate Loans); provided that, in the case of LIBOR
Rate Loans and BA Loans, upon the expiration of the Interest Period in effect
at the time any such increase in interest rate is effective such LIBOR Rate
Loans or BA Loans, as applicable, shall thereupon become Base Rate Loans or
Canadian Prime Rate Loans, as applicable, and shall thereafter bear interest
payable upon demand at a rate which is 2% per annum in excess of the interest
rate otherwise payable under this Agreement for Base Rate Loans or Canadian
Prime Rate Loans, as applicable.  Payment
or acceptance of the increased rates of interest provided for in this subsection 2.2E
is not a permitted alternative to timely payment and shall not constitute a
waiver of any Event of Default or otherwise prejudice or limit any rights or
remedies of Administrative Agent or any Lender.

F.     Computation
of Interest.  Interest on the
Loans shall be computed on the basis of a 360-day year, in each case for
the actual number of days elapsed in the period during which it accrues.  In computing interest on any Loan, the date
of the making of such Loan or the first day of an Interest Period applicable to
such Loan or, with respect to a Base Rate Loan or a Canadian Prime Rate Loan
being converted from a LIBOR Rate Loan or a BA Loan, as applicable, the date of
conversion of such LIBOR Rate Loan or BA Loan to such Base Rate Loan or
Canadian Prime Rate Loan, as the case may be, shall be included, and the date
of payment of such Loan or the expiration date of an Interest Period applicable
to such Loan or, with respect to

51

a Base Rate Loan or a Canadian
Prime Rate Loan being converted to a LIBOR Rate Loan or a BA Loan, as
applicable, the date of conversion of such Base Rate Loan or Canadian Prime
Rate Loan to such LIBOR Rate Loan or BA Loan, as the case may be, shall be
excluded; provided that if a Loan is repaid on the same day on which it
is made, one day’s interest shall be paid on that Loan.

G.    Maximum
Rate.  Notwithstanding the foregoing
provisions of this subsection 2.2, in no event shall the rate of interest
payable by Borrower with respect to any Loan exceed the maximum rate of interest
permitted to be charged under applicable law.

2.3                               Fees.

A.    Commitment
Fees.  Borrower
agrees to pay to Administrative Agent, for distribution to each Revolving
Lender in proportion to that Lender’s Pro Rata Share, commitment fees for the
period from and including the Original Closing Date to and excluding the Revolving Loan Commitment Termination Date equal to
the average of the daily excess of the Revolving Loan Commitments over the sum
of (i) the aggregate principal amount of outstanding Revolving Loans (but
not any outstanding Swing Line Loans) plus (ii) the Revolving
Letter of Credit Usage multiplied by  a rate per annum equal to the
percentage set forth in the table below opposite the Leverage Ratio for the
four Fiscal Quarter period for which the applicable Pricing Certificate has
been delivered pursuant to subsection 6.1(iv):

	
  Leverage Ratio

  	
   

  	
  Commitment

  Fee Percentage

  	
   

  
	
  2.50:1.00 or greater

  	
   

  	
  0.50

  	
  %

  
	
  Less than 2.50:1.00

  	
   

  	
  0.375

  	
  %

  

 

such commitment fees to
be calculated on the basis of a 360-day year and the actual number of
days elapsed and to be payable quarterly in arrears on the last Business Day of
March, June, September and December of each year, commencing on the first such
date to occur after the Original Closing Date, and on the Revolving Loan
Commitment Termination Date.  Upon
delivery of the Pricing Certificate by Borrower to Administrative Agent
pursuant to subsection 6.1(iv), the applicable commitment fee percentage
shall automatically be adjusted in accordance with such Pricing Certificate,
such adjustment to become effective on the next succeeding Business Day
following the receipt by Administrative Agent of such Pricing Certificate; provided
that, if at any time a Pricing Certificate is not delivered at the time
required pursuant to subsection 6.1(iv), from the time such Pricing
Certificate was required to be delivered until delivery of such Pricing
Certificate, the applicable commitment fee percentage shall be the maximum
percentage amount set forth above.

B.    Other Fees.  Borrower agrees to pay to Administrative
Agent such fees in the amounts and at the times separately agreed upon between
Borrower and Administrative Agent or Co-Arrangers, as the case may be.

52

2.4                               Repayments, Prepayments
and Reductions in Revolving Loan Commitments; General Provisions Regarding
Payments; Application of Proceeds of Collateral and Payments Under Guaranties.

A.    Scheduled Payments of Term
Loans.

(i)            U.S. Dollar Term Loans.  Borrower shall make principal payments in
Dollars on the U.S. Dollar Term Loans (other than Other Term Loans) in
installments on the dates and in the amounts set forth below:

	
  Date

  	
   

  	
  Scheduled Repayment

  of U.S. Dollar Term Loans

  	
   

  
	
  September 30, 2005

  	
   

  	
  $

  	
  575,000.00

  	
   

  
	
  December 31, 2005

  	
   

  	
  $

  	
  575,000.00

  	
   

  
	
  March 31, 2006

  	
   

  	
  $

  	
  575,000.00

  	
   

  
	
  June 30, 2006

  	
   

  	
  $

  	
  575,000.00

  	
   

  
	
  September 30, 2006

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  December 31, 2006

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  March 31, 2007

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  June 30, 2007

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  September 30, 2007

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  December 31, 2007

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  March 31, 2008

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  June 30, 2008

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  September 30, 2008

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  December 31, 2008

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  March 31, 2009

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  June 30, 2009

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  September 30, 2009

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  December 31, 2009

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  March 31, 2010

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  June 30, 2010

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  September 30, 2010

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  December 31, 2010

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  March 31, 2011

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  June 30, 2011

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  September 30, 2011

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  December 31, 2011

  	
   

  	
  $

  	
  825,000.00

  	
   

  
	
  Term Loan Maturity Date

  	
   

  	
  $

  	
  309,641,325.77

  	
   

  
	
  TOTAL:

  	
   

  	
  $

  	
  330,091,325.77

  	
   

  

 

 

53

 

; provided that
the scheduled installments of principal of the U.S. Dollar Term Loans set forth
above shall be reduced in connection with any voluntary or mandatory
prepayments of the U.S. Dollar Term Loans in accordance with
subsection 2.4B(iv); and provided, further, that the U.S.
Dollar Term Loans and all other amounts owed hereunder with respect to the U.S.
Dollar Term Loans shall be paid in full no later than the Term Loan Maturity
Date, and the final installment payable by Borrower in respect of the U.S.
Dollar Term Loans on such date shall be in an amount, if such amount is different
from that specified above, sufficient to repay all amounts owing by Borrower
under this Agreement with respect to the U.S. Dollar Term Loans.

(ii)           Canadian Dollar Term Loans.  Borrower shall make principal payments in
Canadian Dollars on the Canadian Dollar Term Loans in installments on the dates
and in the amounts set forth below:

	
  Date

  	
   

  	
  Scheduled Repayment

  of Canadian Dollar Term Loans

  	
   

  
	
  September 30, 2005

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  December 31, 2005

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  March 31, 2006

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  June 30, 2006

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  September 30, 2006

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  December 31, 2006

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  March 31, 2007

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  June 30, 2007

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  September 30, 2007

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  December 31, 2007

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  March 31, 2008

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  June 30, 2008

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  September 30, 2008

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  December 31, 2008

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  March 31, 2009

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  June 30, 2009

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  September 30, 2009

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  December 31, 2009

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  March 31, 2010

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  June 30, 2010

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  September 30, 2010

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  December 31, 2010

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  March 31, 2011

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  June 30, 2011

  	
   

  	
  C$

  	
  176,000.00

  	
   

  

 

54

 

	
  Date

  	
   

  	
  Scheduled Repayment

  of Canadian Dollar Term Loans

  	
   

  
	
  September 30, 2011

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  December 31, 2011

  	
   

  	
  C$

  	
  176,000.00

  	
   

  
	
  Term Loan Maturity Date

  	
   

  	
  C$

  	
  65,750,600.00

  	
   

  
	
  TOTAL:

  	
   

  	
  C$

  	
  70,326,600.00

  	
   

  

 

 

; provided that
the scheduled installments of principal of the Canadian Dollar Term Loans set
forth above shall be reduced in connection with any voluntary or mandatory
prepayments of the Canadian Dollar Term Loans in accordance with
subsection 2.4B(iv); and provided, further, that the
Canadian Dollar Term Loans and all other amounts owed hereunder with respect to
the Canadian Dollar Term Loans shall be paid in full no later than the Term
Loan Maturity Date, and the final installment payable by Borrower in respect of
the Canadian Dollar Term Loans on such date shall be in an amount, if such
amount is different from that specified above, sufficient to repay all amounts
owing by Borrower under this Agreement with respect to the Canadian Dollar Term
Loans.

(iii)          Other Term Loans.  Borrower shall make principal payments in
Dollars on the Other Term Loans in installments on each Incremental Term Loan
Repayment Date and in the amounts set forth for such date in the applicable
Incremental Term Loan Assumption Agreement; provided that the scheduled
installments of principal of the Other Term Loans shall be reduced in
connection with voluntary or mandatory prepayments of the Other Term Loans in
accordance with subsection 2.4B(iv); and provided further, that the
Other Term Loans and all other amounts owed hereunder with respect to the Other
Term Loans shall be paid in full no later than the Incremental Term Loan
Maturity Date, and the final amount payable by Borrower in respect of the Other
Term Loans shall be in an amount sufficient to repay all amounts owing by Borrower
under the applicable Incremental Term Loan Assumption Agreement with respect to
the Other Term Loans.

B.            Prepayments and Unscheduled Reductions in Commitments.

(i)            Voluntary Prepayments.  Borrower may, upon written or telephonic
notice to Administrative Agent on or prior to 12:00 Noon (New York City time)
on the date of prepayment, which notice, if telephonic, shall be promptly
confirmed in writing, at any time and from time to time prepay any Swing Line
Loan on any Business Day in whole or in part in an aggregate minimum amount of
$500,000 and multiples of $100,000 in excess of that amount.  Borrower may, upon not less than one Business
Day’s prior written or telephonic notice, in the case of Base Rate Loans or
Canadian Prime Rate Loans, and three Business Days’ prior written or telephonic
notice, in the case of LIBOR Rate Loans or BA Loans, in each case given to
Administrative Agent by 12:00 Noon (New York City time) on the date required
and, if given by telephone, promptly confirmed in writing to Administrative
Agent (who shall promptly notify each Lender for the Loans to be prepaid), at
any time and from time to time prepay any Loans on any Business Day in whole or
in part in an aggregate minimum amount of (a) for Term

 

55

Loans, the Dollar
Equivalent of $2,500,000 and multiples of the Dollar Equivalent of $500,000 in
excess of that amount and (b) for Revolving Loans, $1,000,000 and multiples of
$500,000 in excess of that amount; provided, however, that (x) a
LIBOR Rate Loan may only be prepaid on the expiration of the Interest Period
applicable thereto unless Borrower pays on such date of prepayment all amounts
owing to Lenders under subsection 2.6D and (y) BA Loans may not be repaid
on any day other than the last day of an Interest Period applicable thereto; provided
further that Borrower shall be permitted to defease any BA Loan by
depositing with Administrative Agent an amount (as specified by Administrative
Agent) sufficient to pay all amounts that will be due in respect of such BA
Loan at the end of the Interest Period applicable thereto.  Notice of prepayment having been given as
aforesaid shall be irrevocable and the principal amount of the Loans specified
in such notice shall become due and payable on the prepayment date specified
therein.  Any such voluntary prepayment
shall be applied as specified in subsection 2.4B(iv).

(ii)           Voluntary Reductions of
Commitments.  Borrower may, upon not
less than three Business Days’ prior written or telephonic notice confirmed in
writing to Administrative Agent (who shall promptly notify each Revolving
Lender or Synthetic Letter of Credit Lender, as the case may be, of such
notice), at any time and from time to time terminate in whole or permanently
reduce in part, without premium or penalty, (a) the Revolving Loan
Commitments in an amount up to the amount by which the Revolving Loan
Commitments exceed the Total Utilization of Revolving Loan Commitments at the
time of such proposed termination or reduction; provided that any such
partial reduction of the Revolving Loan Commitments shall be in an aggregate
minimum amount of $1,000,000 and multiples of $500,000 in excess of that
amount, and (b) the Synthetic Letter of Credit Commitments in an amount up
to the amount by which the Synthetic Letter of Credit Commitments exceed the
Total Utilization of Synthetic Letter of Credit Commitments at the time of such
proposed termination or reduction; provided that any such partial
reduction of the Synthetic Letter of Credit Commitments shall be in an
aggregate minimum amount of $1,000,000 and multiples of $500,000 in excess of
that amount.  Borrower’s notice to
Administrative Agent shall designate the date (which shall be a Business Day)
of such termination or reduction and the amount of any partial reduction, and
such termination or reduction of the Revolving Loan Commitments or Synthetic
Letter of Credit Commitments, as the case may be, shall be effective on the
date specified in Borrower’s notice and shall reduce the Revolving Loan
Commitment or Synthetic Letter of Credit Commitment, as the case may be, of
each Revolving Lender or Synthetic Letter of Credit Lender, respectively,
proportionately to its Pro Rata Share. 
Any such voluntary reduction of the Revolving Loan Commitments or
Synthetic Letter of Credit Commitments, as the case may be, shall be applied as
specified in subsection 2.4B(iv).

(iii)          Mandatory Prepayments.  The Loans shall be prepaid in the amounts and
under the circumstances set forth below, all such prepayments and/or reductions
to be applied as set forth below or as more specifically provided in
subsection 2.4B(iv):

56

(a)           Prepayments From Net Asset Sale
Proceeds.  Within 3 Business Days of
receipt by Parent or any of its Subsidiaries of any Net Asset Sale Proceeds in
respect of Asset Sales in an aggregate amount in excess of $5,000,000 in any
Fiscal Year (any such Net Asset Sale Proceeds being the “Repayable Net Asset Sale Proceeds”),
Borrower shall either (1) prepay the Loans in an aggregate amount equal to 100%
of such Repayable Net Asset Sale Proceeds or (2) so long as no Potential Event
of Default or Event of Default shall have occurred and be continuing, deliver
to Administrative Agent an Officer’s Certificate setting forth (x) that portion
of such Repayable Net Asset Sale Proceeds that Parent or such Subsidiary
intends to reinvest in equipment or other productive assets of the general type
used in the business of Parent and its Subsidiaries within 365 days of such date of receipt
and (y) the proposed use of such portion of the Net Asset Sale Proceeds and
such other information with respect to such reinvestment as Administrative
Agent may reasonably request, and Parent shall, or shall cause one or more of
its Subsidiaries to, promptly and diligently apply such portion to such
reinvestment purposes; provided, however, that pending such
reinvestment, such portion of the Repayable Net Asset Sale Proceeds shall be
applied to prepay outstanding Revolving Loans (without a reduction in Revolving
Loan Commitments) to the full extent thereof. 
In addition, Borrower shall, no later than 365 days after receipt of such Repayable Net Asset Sale
Proceeds that have not theretofore been applied to the Obligations or that have
not been so reinvested as provided above, make an additional prepayment of the
Loans in the full amount of all such Repayable Net Asset Sale Proceeds.

(b)           Prepayments from Net
Insurance/Condemnation Proceeds.  No
later than the third Business Day following the date of receipt by
Administrative Agent or by Parent or any of its Subsidiaries of any Net
Insurance/Condemnation Proceeds that are required to be applied to prepay the
Loans pursuant to the provisions of subsection 6.4C, Borrower shall prepay
the Loans in an aggregate amount equal to 100% of such Net
Insurance/Condemnation Proceeds.

(c)           Prepayments Due to Issuance of
Equity Securities.  On the first
Business Day following receipt by Parent or any of its Subsidiaries of the Cash
proceeds (any such proceeds, net of underwriting discounts and commissions and
other reasonable costs and expenses associated therewith, including reasonable
legal fees and expenses, being “Net Equity Securities
Proceeds”) from the issuance of any equity Securities of Parent or
any of its Subsidiaries (other than the IPO Proceeds), Borrower shall apply an
aggregate amount equal to 50% of such Net Equity Securities Proceeds to prepay
the Loans; provided that (i) if the Applicable Leverage Ratio is
less than 3.00:1.00, but greater than or equal to 2.50:1.00, at the time of
such issuance (after giving pro forma effect
to the intended application of such proceeds), the amount of such prepayment
shall be reduced to 25% of such Net Equity Securities Proceeds and (ii) if
the Applicable Leverage Ratio is less than 2.50:1.00 at the time of such
issuance (after giving pro

57

forma effect to the intended application of
such proceeds), no portion of such Net Equity Securities Proceeds shall be
required to be prepaid (except as shall be prepaid in such intended
application).

(d)           Prepayments Due to Issuance of
Debt Securities.  On the first
Business Day following receipt by Parent or any of its Subsidiaries of the Cash
proceeds (any such proceeds, net of underwriting discounts and commissions and
other reasonable costs and expenses associated therewith, including reasonable
legal fees and expenses, being “Net Debt Securities
Proceeds”) from the issuance of any debt Securities of Parent or any
of its Subsidiaries (other than Indebtedness permitted pursuant to
subsection 7.1, other than as set forth in subsection 7.1(x)),
Borrower shall prepay the Loans in an aggregate amount equal to 100% of such
Net Debt Securities Proceeds.

(e)           Prepayments from Excess Cash Flow.  In the event that there shall be Excess Cash
Flow for any Fiscal Year, Borrower shall, no later than 90 days (the “Excess Cash Flow Payment Date”) (or no
later than 5 Business Days after any earlier date on which Borrower may be
required to deliver year-end financial statements pursuant to subsection
6.1(iii); provided that such date is no later than the Excess Cash Flow
Payment Date) after the end of such Fiscal Year, prepay the Loans in an
aggregate amount equal to 50% of such Excess Cash Flow; provided that
(i) for any Fiscal Year in which the Applicable Leverage Ratio as at the
last day thereof is less than 3.00:1.00, but greater than or equal to
2.50:1.00, the amount of such prepayment shall be reduced to 25% of such Excess
Cash Flow and (ii) for any Fiscal Year in which the Applicable Leverage
Ratio as at the last day thereof is less than 2.50:1.00, no portion of the
Excess Cash Flow shall be required to be prepaid; and provided, further,
that such mandatory prepayment shall be required only in an amount equal to the
amount necessary to reduce the Applicable Leverage Ratio, as at the last day of
the immediately preceding Fiscal Year, to 2.50:1.00.

(f)            Calculations of Net Proceeds
Amounts; Additional Prepayments Based on Subsequent Calculations.  Concurrently with any prepayment of the Loans
pursuant to subsections 2.4B(iii)(a)-(e), Borrower shall deliver to
Administrative Agent an Officer’s Certificate demonstrating the calculation of
the amount of the applicable Net Asset Sale Proceeds, Net Insurance/Condemnation
Proceeds, Net Equity Securities Proceeds, Net Debt Securities Proceeds or
Excess Cash Flow, as the case may be, that gave rise to such prepayment and/or
reduction.  In the event that Borrower
shall subsequently determine that the actual amount was greater than the amount
set forth in such Officer’s Certificate, Borrower shall promptly make an
additional prepayment of the Loans in an amount equal to the amount of such
excess, and Borrower shall concurrently therewith deliver to Administrative
Agent an Officer’s Certificate demonstrating the derivation of the additional
amount resulting in such excess.

58

 

(g)           Prepayments Due to Reductions or
Restrictions of Revolving Loan Commitments. 
Borrower shall from time to time prepay first the Swing Line
Loans and second the Revolving Loans to the extent necessary so that the
Total Utilization of Revolving Loan Commitments shall not at any time exceed
the Revolving Loan Commitments then in effect.

(h)           Prepayments Due to Reductions or
Restrictions of Synthetic Letter of Credit Commitments.  Borrower shall from time to time prepay the
Synthetic Letter of Credit Loans to the extent necessary so that the Total
Utilization of Synthetic Letter of Credit Commitments shall not at any time
exceed the Synthetic Letter of Credit Commitments then in effect.

(iv)          Application
of Prepayments.

(a)           Application of Voluntary
Prepayments by Type of Loans and Order of Maturity.  Any voluntary prepayments pursuant to
subsection 2.4B(i) shall be applied as specified by Borrower in the
applicable notice of prepayment; provided that in the event Borrower
fails to specify the Loans to which any such prepayment shall be applied, such
prepayment shall be applied first to repay outstanding Swing Line Loans
to the full extent thereof, second to repay outstanding Revolving Loans
and/or Synthetic Letter of Credit Loans, as the case may be, to the full extent
thereof, and third to repay outstanding Term Loans to the full extent
thereof.  Any voluntary prepayments of
the Revolving Loans and the Synthetic Letter of Credit Loans pursuant to
subsection 2.4B(i) shall be applied to prepay the Revolving Loans and the
Synthetic Letter of Credit Loans on a pro rata basis
(in accordance with the respective outstanding principal amounts thereof).  Any voluntary prepayments of Synthetic Letter
of Credit Loans shall, to the extent of the excess of the Synthetic Letter of
Credit Commitments (determined after giving effect to any reductions of the
Synthetic Letter of Credit Commitments occurring simultaneously with such
prepayments) over the Total Utilization of Synthetic Letter of Credit
Commitments, be retained by Administrative Agent and applied to increase the
amount of each Synthetic Letter of Credit Lender’s Credit-Linked Deposit in an
amount equal to such Synthetic Letter of Credit Lender’s Pro Rata Share of such
excess.  Any voluntary prepayments of
Term Loans pursuant to subsection 2.4B(i) shall be applied to prepay U.S.
Dollar Term Loans, Canadian Dollar Term Loans or Other Term Loans as directed
by Borrower and to reduce the scheduled installments of principal of all
Term Loans so selected on a pro rata basis
with respect to each remaining scheduled installment of principal of such Term
Loans set forth in subsection 2.4A or in the applicable Incremental Term
Loan Assumption Agreement, as the case may be.

(b)           Application of Mandatory
Prepayments by Type of Loans.  Except
as provided in subsection 2.4D, any amount required to be applied as a
mandatory prepayment of the Loans pursuant to subsections 2.4B(iii)(a)-(f)
shall be applied, subject to subsection 2.4B(iv)(c), to prepay all Term Loans
to the full extent

59

thereof; provided
that, at all times after the payment in full of all Term Loans under this
Agreement, any such amount shall be applied first to prepay the Swing
Line Loans to the full extent thereof, and second, to the extent of any
remaining portion of such amount, to prepay the Revolving Loans and/or the
Synthetic Letter of Credit Loans, as the case may be, to the full extent
thereof.

(c)           Notice of Mandatory Prepayments;
Right of Term Lenders to Decline Mandatory Prepayments.  Borrower shall deliver written notice of the
proposed date and amount of any mandatory prepayment required to be made
pursuant to subsection 2.4B(iii) by no later than 12:00 noon (New York City
time) at least five Business Days prior to the date of such proposed mandatory
prepayment.  Administrative Agent shall
promptly notify the Term Lenders of the proposed date and amount of such
mandatory prepayment.  Notwithstanding
anything to the contrary set forth herein, any Term Lender may elect, by notice to Administrative Agent in
writing or by fax in the manner specified in such notice at least three
Business Days prior to the proposed date of such mandatory prepayment, to decline
all (but not a portion) of its pro rata
share of such mandatory prepayment (such declined amounts, the “Declined Proceeds”).  By prompt notice from Administrative Agent,
any Declined Proceeds shall be offered to the Term Lenders not so declining
such mandatory prepayment (with such Term Lenders having the right to decline
any mandatory prepayment with Declined Proceeds by notice to Administrative
Agent in writing or by fax in the manner specified in such notice at least two
Business Days prior to the proposed date of such mandatory prepayment).  To the extent Term Lenders elect to decline
their pro rata share of such Declined
Proceeds, any remaining Declined Proceeds may be retained by Borrower.

(d)           Application of Mandatory
Prepayments of Term Loans to Term Loans and the Scheduled Installments of
Principal Thereof.  Any mandatory
prepayments of the Term Loans pursuant to subsection 2.4B(iii) shall be
allocated pro rata between the Term Loans and
Other Term Loans and applied to prepay all Term Loans and Other Term Loans
on a pro rata basis (in accordance with the
Dollar Equivalent of the respective outstanding principal amounts thereof) and
shall be applied to reduce the scheduled installments of principal of all
Term Loans and Other Term Loans as set forth in subsection 2.4A or in
the applicable Incremental Term Loan Assumption Agreement, as the case may be,
on a pro rata basis (in accordance with the
Dollar Equivalent of the respective outstanding principal amounts thereof) to
each remaining scheduled installment of principal of such Term Loans and Other
Term Loans set forth in subsection 2.4A or in the applicable Incremental
Term Loan Assumption Agreement, as the case may be, that is unpaid at the time
of such prepayment.  The Canadian Dollar
Equivalent of the portion of any mandatory prepayments allocable to the
Canadian Dollar Term Loans in accordance with the immediately preceding
sentence shall be paid to Administrative Agent in Canadian Dollars.

60

(e)           Application of Mandatory
Prepayments of Revolving Loans and Synthetic Letter of Credit Loans.  Any mandatory prepayments of the Revolving
Loans or the Synthetic Letter of Credit Loans, as the case may be, pursuant to
subsection 2.4B(iii) shall be applied to prepay the Revolving Loans and
the Synthetic Letter of Credit Loans on a pro rata basis
(in accordance with the respective outstanding principal amounts thereof).  Any mandatory prepayments of Synthetic Letter
of Credit Loans shall, to the extent of the excess of the Synthetic Letter of
Credit Commitments (determined after giving effect to any reductions of the
Synthetic Letter of Credit Commitments occurring simultaneously with such
prepayments) over the Total Utilization of Synthetic Letter of Credit
Commitments, be retained by Administrative Agent and applied to increase the
amount of each Synthetic Letter of Credit Lender’s Credit-Linked Deposit in an
amount equal to such Synthetic Letter of Credit Lender’s Pro Rata Share of such
excess.

(f)            Application of Prepayments to
Base Rate Loans, Canadian Prime Rate Loans, LIBOR Rate Loans and BA Loans.  Considering Term Loans, Revolving Loans and
Synthetic Letter of Credit Loans being prepaid separately, any voluntary
prepayment thereof, and any mandatory prepayment thereof whereby all Term
Lenders shall have accepted such mandatory prepayment, shall be applied first
pro rata to Base Rate Loans and Canadian
Prime Rate Loans to the full extent thereof before pro rata
application to LIBOR Rate Loans and BA Loans, in each case in a manner that
minimizes the amount of any payments required to be made by Borrower pursuant
to subsection 2.6D.  If some but not
all Term Lenders shall have accepted any mandatory prepayment made pursuant to
subsection 2.4B(iii), then the aggregate amount of such mandatory prepayment
shall be allocated ratably to each outstanding Term Loan of the accepting Term
Lenders, regardless of whether such Term Loans are Base Rate Loans, Canadian
Prime Rate Loans, LIBOR Rate Loans or BA Loans (and in the case of all such
LIBOR Rate Loans and BA Loans, such mandatory prepayment shall be allocated
ratably among all such Term Loans as to which a single Interest Period is in
effect).

C.    General Provisions Regarding Payments.

(i)            Manner and Time of Payment.  All payments by Borrower of principal,
interest, fees and other Obligations shall be made in Dollars (or, in the case
of the Canadian Dollar Term Loans, in Canadian Dollars) in same day funds,
without defense, setoff or counterclaim, free of any restriction or condition,
and delivered to Administrative Agent not later than 12:00 Noon (New York City
time) on the date due at the Funding and Payment Office for the account of
Lenders; funds received by Administrative Agent after that time on such due
date shall be deemed to have been paid by Borrower on the next succeeding
Business Day.  Borrower hereby authorizes
Administrative Agent to charge any accounts Administrative Agent may have in
Borrower’s name in order to cause timely payment to be made to Administrative
Agent

61

of all principal,
interest, fees and expenses due hereunder (subject to sufficient funds being
available in its accounts for that purpose).

(ii)           Application of Payments to
Principal and Interest.  Except as
provided in subsection 2.2C, all payments in respect of the principal
amount of any Loan shall include payment of accrued interest on the principal
amount being repaid or prepaid, and all such payments (and, in any event, any
payments in respect of any Loan on a date when interest is due and payable with
respect to such Loan) shall be applied to the payment of interest before
application to principal.

(iii)          Apportionment of Payments.  Aggregate principal and interest payments in
respect of Term Loans, Synthetic Letter of Credit Loans, Swing Line Loans and
Revolving Loans shall be apportioned among all outstanding Loans to which such
payments relate, in each case proportionately to Lenders’ respective Pro Rata
Shares.  Administrative Agent shall
promptly distribute to each Lender its Pro Rata Share of all such payments
received by Administrative Agent and the commitment fees of such Lender, if
any, when received by Administrative Agent pursuant to subsection 2.3.
Notwithstanding the foregoing provisions of this subsection 2.4C(iii), if,
pursuant to the provisions of subsection 2.6C, any Notice of
Conversion/Continuation is withdrawn as to any Affected Lender or if any
Affected Lender makes Base Rate Loans or Canadian Prime Rate Loans in lieu of
its Pro Rata Share of any LIBOR Rate Loans or BA Loans, as applicable,
Administrative Agent shall give effect thereto in apportioning payments
received thereafter.

(iv)          Payments on Business Days.  Whenever any payment to be made hereunder
shall be stated to be due on a day that is not a Business Day, such payment
shall be made on the preceding Business Day.

(v)           Notation of Payment.  Each Lender agrees that before disposing of
any Note held by it, or any part thereof (other than by granting participations
therein), that Lender will make a notation thereon of all Loans evidenced by
that Note and all principal payments previously made thereon and of the date to
which interest thereon has been paid; provided that the failure to make
(or any error in the making of) a notation of any Loan made under such Note
shall not limit or otherwise affect the obligations of Borrower hereunder or
under such Note with respect to any Loan or any payments of principal or
interest on such Note.

D.    Application of Proceeds of
Collateral and Payments after Event of Default.

Upon the occurrence and
during the continuation of an Event of Default, either if requested by
Requisite Lenders or upon termination of the Revolving Loan Commitments
(a) all payments received on account of the Obligations, whether from
Borrower, from any Guarantor or otherwise, shall be applied by Administrative
Agent against the Obligations and (b) all proceeds received by
Administrative Agent in respect of any sale of, collection from, or other
realization upon all or any part of the Collateral under any Collateral
Document may, in the

62

discretion of
Administrative Agent, be held by Administrative Agent as Collateral for, and/or
(then or at any time thereafter) applied in full or in part by Administrative
Agent against, the applicable Secured Obligations (as defined in such
Collateral Document), in each case in the following order of priority:

(i)            to the payment of all costs and
expenses of such sale, collection or other realization, all other expenses,
liabilities and advances made or incurred by Administrative Agent in connection
therewith, and all amounts for which Administrative Agent is entitled to
compensation (including the fees described in subsection 2.3B),
reimbursement and indemnification under any Loan Document and all advances made
by Administrative Agent thereunder for the account of the applicable Loan Party,
and to the payment of all costs and expenses paid or incurred by Administrative
Agent in connection with the Loan Documents, all in accordance with
subsections 9.4, 10.2 and 10.3 and the other terms of this Agreement and
the Loan Documents;

(ii)           thereafter, to the payment of accrued
fees described in subsection 2.3A or B or subsection 3.2 and accrued
interest, in each case for the ratable benefit of the Lenders to whom such fees
and interest are owed;

(iii)          thereafter, to the payment of Unfunded
Advances/Participations (the amounts so applied to be distributed between or
among Administrative Agent, the Swing Line Lender and any Issuing Lender pro rata in accordance with the amount of Unfunded
Advances/Participations owed to them);

(iv)          thereafter, to the payment of the
principal amount of all Loans (including, without limitation, the principal
amount of Swing Line Loans and assignments of Swing Line Loans that have been
purchased under subsection 2.1A(ii)(c)) for the ratable benefit of the
Lenders (including, without limitation, the Swing Line Lender in its capacity
as such and as a Revolving Lender);

(v)           thereafter, to the payment of all
other Obligations for the ratable benefit of the holders thereof (subject to
the provisions of subsection 2.4C(ii) hereof); and

(vi)          thereafter, to the payment to or upon
the order of such Loan Party or to whomsoever may be lawfully entitled to
receive the same or as a court of competent jurisdiction may direct.

2.5                               Use of Proceeds.

A.    Supplemental Term Loans.  The proceeds of the Supplemental Term Loans
shall be applied by Borrower solely for the purposes specified in the
preliminary statements to this Agreement.

B.    Revolving Loans; Swing Line Loans.  The proceeds of any Revolving
Loans, Synthetic Letter of Credit Loans and any Swing Line Loans shall be
applied by Borrower for working capital and other general corporate purposes,
which may include the making of

63

intercompany loans to any of
Borrower’s Subsidiaries, in accordance with subsection 7.1(iv), for their
own general corporate purposes and to finance Permitted Acquisitions.

C.     Margin Regulations.  No portion of the proceeds of any
borrowing under this Agreement shall be used by Borrower or any of its
Subsidiaries in any manner that might cause the borrowing or the application of
such proceeds to violate Regulation U, Regulation T or Regulation X
of the Board of Governors of the Federal Reserve System or any other regulation
of such Board or to violate the Exchange Act, in each case as in effect on the
date or dates of such borrowing and such use of proceeds.

D.    Incremental Term Loans.  The proceeds of the Incremental
Term Loans shall be applied by Borrower only for the purposes specified in the
applicable Incremental Term Loan Assumption Agreement.

2.6                               Special Provisions
Governing LIBOR Rate Loans and BA Loans.

Notwithstanding any other
provision of this Agreement to the contrary, the following provisions shall
govern with respect to LIBOR Rate Loans and BA Loans as to the matters covered:

A.    Determination
of Applicable Interest Rate.  As soon as
practicable after 10:00 A.M. (New York City time) on each Interest Rate
Determination Date, Administrative Agent shall determine (which determination
shall, absent manifest error, be conclusive and binding upon all parties) the
interest rate that shall apply to the LIBOR Rate Loans for which an interest
rate is then being determined for the applicable Interest Period and shall
promptly give notice thereof (in writing or by telephone confirmed in writing)
to Borrower and each Lender.

B.    Inability to Determine
Applicable Interest Rate.

(i)            In
the event that Administrative Agent shall have determined (which determination
shall be conclusive and binding upon all parties hereto), on any Interest Rate
Determination Date that by reason of circumstances affecting the London
interbank market adequate and fair means do not exist for ascertaining the
interest rate applicable to such Loans on the basis provided for in the
definition of Adjusted LIBOR Rate, Administrative Agent shall on such date give
notice (by telefacsimile or by telephone confirmed in writing) to Borrower and
each Lender of such determination, whereupon (i) no Loans may be made as,
or converted to, LIBOR Rate Loans until such time as Administrative Agent
notifies Borrower and Lenders that the circumstances giving rise to such notice
no longer exist and (ii) any Notice of Borrowing or Notice of
Conversion/Continuation given by Borrower with respect to the Loans in respect
of which such determination was made shall be deemed to be for a Base Rate
Loan.

(ii)           In the event that Administrative
Agent (in consultation with its Toronto branch) shall have reasonably
determined (which determination shall, absent clearly demonstrable error, be
final and conclusive and binding upon all parties hereto) that there does not
exist a normal market in Canada for the purchase and sale of bankers’

64

 

acceptances, then,
and in any such event, Administrative Agent shall within a reasonable time
thereafter give notice (if by telephone confirmed in writing) to Borrower and
each of the Canadian Dollar Term Lenders of such determination.  Thereafter, BA Loans shall no longer be
available until such time as Administrative Agent notifies Borrower and the
Canadian Dollar Term Lenders that the circumstances giving rise to such notice
by Administrative Agent no longer exist (which notice Administrative Agent
agrees to give at such time when such circumstances no longer exist), and any
Notice of Borrowing or Notice of Conversion/Continuation given by Borrower with
respect to BA Loans that have not yet been incurred shall be deemed rescinded
by Borrower.  Any maturing BA Loans shall
thereafter, and until contrary notice is provided by Administrative Agent, be
continued as a Canadian Prime Rate Loan.

C.    Illegality or Impracticability
of LIBOR Rate Loans.  In the
event that on any date any Lender shall have determined (which determination
shall be conclusive and binding upon all parties hereto but shall be made only
after consultation with Borrower and Administrative Agent) that the making,
maintaining or continuation of its LIBOR Rate Loans (i) has become
unlawful as a result of compliance by such Lender in good faith with any law,
treaty, governmental rule, regulation, guideline or order (or would conflict
with any such treaty, governmental rule, regulation, guideline or order not
having the force of law even though the failure to comply therewith would not be
unlawful) or (ii) has become impracticable, or would cause such Lender
material hardship, as a result of contingencies occurring after the date of
this Agreement which materially and adversely affect the London interbank
market or the position of such Lender in that market, then, and in any such
event, such Lender shall be an “Affected Lender” and it
shall on that day give notice (by telefacsimile or by telephone confirmed in
writing) to Borrower and Administrative Agent of such determination (which
notice Administrative Agent shall promptly transmit to each other Lender).  Thereafter (a) the obligation of the
Affected Lender to make Loans as, or to convert Loans to, LIBOR Rate Loans
shall be suspended until such notice shall be withdrawn by the Affected Lender,
(b) to the extent such determination by the Affected Lender relates to a
LIBOR Rate Loan then being requested by Borrower pursuant to a Notice of
Borrowing or a Notice of Conversion/Continuation, the Affected Lender shall
make such Loan as (or convert such Loan to, as the case may be) a Base Rate
Loan, (c) the Affected Lender’s obligation to maintain its outstanding
LIBOR Rate Loans (the “Affected
Loans”) shall be terminated at the earlier to occur of
the expiration of the Interest Period then in effect with respect to the
Affected Loans or when required by law, and (d) the Affected Loans shall
automatically convert into Base Rate Loans on the date of such
termination.  Notwithstanding the
foregoing, to the extent a determination by an Affected Lender as described
above relates to a LIBOR Rate Loan then being requested by Borrower pursuant to
a Notice of Borrowing or a Notice of Conversion/Continuation, Borrower shall
have the option, subject to the provisions of subsection 2.6D, to rescind
such Notice of Borrowing or Notice of Conversion/Continuation as to all Lenders
by giving notice (by telefacsimile or by telephone confirmed in writing) to
Administrative Agent of such rescission on the date on which the Affected
Lender gives notice of its determination as described above (which notice of
rescission Administrative Agent shall promptly transmit to each other
Lender).  Except as provided in the
immediately preceding sentence, nothing in this subsection 2.6C shall
affect the obligation of

65

 

any Lender other than an Affected
Lender to make or maintain Loans as, or to convert Loans to, LIBOR Rate Loans
in accordance with the terms of this Agreement.

D.    Compensation For Breakage or
Non-Commencement of Interest Periods.  Borrower shall compensate each Lender, upon written request by that
Lender pursuant to subsection 2.8, for all reasonable losses, expenses and
liabilities (including any interest paid by that Lender to lenders of funds
borrowed by it to make or carry its LIBOR Rate Loans or BA Loans and any loss,
expense or liability sustained by that Lender in connection with the
liquidation or re-employment of such funds) which that Lender may sustain:
(i) if for any reason (other than a default by that Lender) a borrowing of
any LIBOR Rate Loan or any BA Loan does not occur on a date specified therefor
in a Notice of Borrowing or a telephonic request therefor, or a conversion to
or continuation of any LIBOR Rate Loan or any BA Loan does not occur on a date
specified therefor in a Notice of Conversion/Continuation or a telephonic
request therefor, (ii) if any prepayment or other principal payment or any
conversion of any of its LIBOR Rate Loans or BA Loans (including any prepayment
or conversion occasioned by the circumstances described in
subsection 2.6C) occurs on a date prior to the last day of an Interest
Period applicable to that Loan, (iii) if any prepayment of any of its
LIBOR Rate Loans or BA Loans is not made on any date specified in a notice of
prepayment given by Borrower, or (iv) as a consequence of any other
default by Borrower in the repayment of its LIBOR Rate Loans or BA Loans when
required by the terms of this Agreement.

E.     Booking of LIBOR Rate Loans.  Any Lender may make, carry or transfer LIBOR Rate Loans at, to, or for
the account of any of its branch offices or the office of an Affiliate of that
Lender.

F.     Assumptions Concerning
Funding of LIBOR Rate Loans.  Calculation of all amounts payable to a Lender under this
subsection 2.6 and under subsection 2.7A shall be made as though that
Lender had funded each of its LIBOR Rate Loans through the purchase of a LIBOR
deposit bearing interest at the rate obtained pursuant to clause (i) of
the definition of Adjusted LIBOR Rate in an amount equal to the amount of such
LIBOR Rate Loan and having a maturity comparable to the relevant Interest
Period, whether or not its LIBOR Rate Loans had been funded in such manner.

G.    LIBOR Rate Loans and BA Loans
After Default.  After the
occurrence of and during the continuation of a Potential Event of Default or an
Event of Default, (i) Borrower may not have a Loan be made or maintained
as, or converted to, a LIBOR Rate Loan or a BA Loan after the expiration of any
Interest Period then in effect for that Loan and (ii) subject to the
provisions of subsection 2.6D, any Notice of Borrowing or Notice of
Conversion/Continuation given by Borrower with respect to a requested borrowing
or conversion/continuation that has not yet occurred shall be deemed to be for
a Base Rate Loan or a Canadian Prime Rate Loan, as applicable, or, if the
conditions to making a Loan set forth in subsection 4.2 cannot then be
satisfied, to be rescinded by Borrower.

2.7                               Increased Costs; Taxes;
Capital Adequacy.

 

66

A.            Compensation for Increased Costs.  Subject to the provisions of subsection 2.7B (which shall be
controlling with respect to the matters covered thereby), in the event that any
Lender (including any Issuing Lender) shall determine (which determination
shall, absent manifest error, be final and conclusive and binding upon all
parties hereto) that any law, treaty or governmental rule, regulation or order,
or any change therein or in the interpretation, administration or application
thereof (including the introduction of any new law, treaty or governmental
rule, regulation or order), or any determination of a court or other Government
Authority, in each case that becomes effective after the Restatement Date, or
compliance by such Lender with any guideline, request or directive issued or
made after the Restatement Date by any central bank or other Government
Authority (whether or not having the force of law):

(i)            subjects such Lender to any
additional Tax with respect to this Agreement or any of its obligations
hereunder (including with respect to issuing or maintaining any Letters of
Credit or purchasing or maintaining any participations therein or maintaining
any Commitment hereunder) or any payments to such Lender of principal,
interest, fees or any other amount payable hereunder;

(ii)           imposes, modifies or holds applicable
any reserve, special deposit, compulsory loan, insurance charge or similar
requirement against assets held by, or deposits or other liabilities in or for
the account of, or advances or loans by, or other credit extended by, or any
other acquisition of funds by, any office of such Lender (other than any such
reserve or other requirements with respect to LIBOR Rate Loans that are
reflected in the definition of LIBOR Rate); or

(iii)          imposes any other condition (other
than with respect to Taxes) on or affecting such Lender or its obligations
hereunder or the London or Canadian interbank markets;

and the result of any of
the foregoing is to increase the cost to such Lender of agreeing to make,
making or maintaining its Loans or Commitments or agreeing to issue, issuing or
maintaining any Letter of Credit or agreeing to purchase, purchasing or
maintaining any participation therein or to reduce any amount received or
receivable by such Lender with respect thereto; then, in any such case,
Borrower shall promptly pay to such Lender, upon receipt of the statement
referred to in subsection 2.8A, such additional amount or amounts (in the
form of an increased rate of, or a different method of calculating, interest or
otherwise as such Lender in its sole discretion shall determine) as may be
necessary to compensate such Lender for any such increased cost or reduction in
amounts received or receivable hereunder.

B.    Taxes.

(i)            Payments to Be Free and Clear.  All sums payable by Borrower under this
Agreement and the other Loan Documents shall be paid free and clear of, and
without any deduction or withholding on account of, any Tax imposed, levied,
collected, withheld or assessed by or within the United States of America or
any political subdivision in or of the United States of America or any other
jurisdiction from or to which a payment is made by or on behalf of Borrower or
by any federation or organization of which the

67

United States of
America or any such jurisdiction is a member at the time of payment, except to
the extent such Taxes are imposed by law.

(ii)           Grossing-up of Payments.  If Borrower or any other Person is required
by law to make any deduction or withholding on account of any such Tax from any
sum paid or payable by Borrower to Administrative Agent or any Lender under any
of the Loan Documents:

(a)           Borrower shall notify Administrative
Agent of any such requirement or any change in any such requirement as soon as
Borrower becomes aware of it;

(b)           Borrower shall pay any such Tax when
such Tax is due, such payment to be made (if the liability to pay is imposed on
Borrower) for its own account or (if that liability is imposed on Administrative
Agent or such Lender, as the case may be) on behalf of and in the name of
Administrative Agent or such Lender;

(c)           the sum payable by Borrower in
respect of which the relevant deduction, withholding or payment is required
shall be increased to the extent necessary to ensure that, after the making of
that deduction, withholding or payment, Administrative Agent or such Lender, as
the case may be, receives on the due date a net sum equal to what it would have
received had no such deduction, withholding or payment been required or made;
and

(d)           within 30 days after paying any
sum from which it is required by law to make any deduction or withholding, and
within 30 days after the due date of payment of any Tax which it is
required by clause (b) above to pay, Borrower shall deliver to
Administrative Agent evidence satisfactory to the other affected parties of
such deduction, withholding or payment and of the remittance thereof to the
relevant taxing or other authority;

provided that no such amount shall be required to
be paid to any Lender under clause (c) above except to the extent that any
change after the date on which such Lender became a Lender in any such
requirement for a deduction, withholding or payment as is mentioned therein
shall result in an increase in the rate of such deduction, withholding or
payment from that in effect on the date on which such Lender became a Lender,
in respect of payments to such Lender.

(iii)          Evidence of Exemption from U.S.
Withholding Tax.

(a)           Each Non-US Lender shall, to the extent not previously delivered under
the Existing Credit Agreement, deliver to Administrative Agent and to Borrower,
on or prior to the Restatement Date or on or prior to the date of the
Assignment Agreement pursuant to which it becomes a Lender, and at such other
times as may be necessary in the determination of Borrower or Administrative
Agent (each in the reasonable exercise of its discretion), two original copies
of

68

Internal Revenue
Service Form W-8BEN (claiming eligibility of the Non-US Lender for
benefits of an income tax treaty to which the United States is a party) or W-8ECI
(or any successor forms) properly completed and duly executed by such Lender,
or, in the case of a Non-US Lender claiming exemption from United States
federal withholding tax under Section 881(c) of the Internal Revenue Code
with respect to payments of “portfolio interest”, a form W-8BEN, and a
certificate of such Lender certifying that such Lender is not (i) a “bank”
for purposes of Section 881(c)(3)(A) of the Internal Revenue Code,
(ii) a ten-percent shareholder (within the meaning of
Section 881(c)(3)(B) of the Internal Revenue Code) of Borrower or Parent
or (iii) a controlled foreign corporation related to Borrower (within the
meaning of Section 864(d)(4) of the Internal Revenue Code) in each case
together with any other certificate or statement of exemption required under
the Internal Revenue Code or the regulations issued thereunder to establish
that such Lender is not subject to United States withholding tax with respect
to any payments to such Lender of interest payable under any of the Loan
Documents.

(b)           Each Non-US Lender, to the
extent it does not act or ceases to act for its own account with respect to any
portion of any sums paid or payable to such Lender under any of the Loan
Documents (for example, in the case of a typical participation by such Lender),
shall, to the extent not previously delivered under the Existing Credit
Agreement, deliver to Administrative Agent and to Borrower, on or prior to the
Restatement Date or on or prior to the date of the Assignment Agreement
pursuant to which it becomes a Lender, or on such later date when such Lender
ceases to act for its own account with respect to any portion of any such sums
paid or payable, and at such other times as may be necessary in the
determination of Borrower or Administrative Agent (each in the reasonable
exercise of its discretion), (1) two original copies of the forms or
statements required to be provided by such Lender under
subsection 2.7B(iii)(a), properly completed and duly executed by such
Lender, to establish that the portion of any such sums paid or payable with
respect to which such Lender acts for its own account is not subject to United
States withholding tax, and (2) two original copies of Internal Revenue
Service Form W-8IMY (or any successor forms) properly completed and duly
executed by such Lender, together with any information, if any, such Lender
chooses to transmit with such form, and any other certificate or statement of
exemption required under the Internal Revenue Code or the regulations issued
thereunder, to establish that such Lender is not acting for its own account
with respect to a portion of any such sums payable to such Lender.

(c)           Each Non-US Lender hereby
agrees, from time to time after the initial delivery by such Lender of such
forms, whenever a lapse in time or change in circumstances renders such forms,
certificates or other evidence so delivered obsolete or inaccurate in any
material respect, that such Lender shall promptly (1) deliver to
Administrative Agent and to Borrower two original copies of renewals,
amendments or additional or successor forms, properly completed and

 

69

duly executed by
such Lender, together with any other certificate or statement of exemption
required in order to confirm or establish that such Lender is not subject to
United States withholding tax with respect to payments to such Lender under the
Loan Documents and, if applicable, that such Lender does not act for its own
account with respect to any portion of such payment, or (2) notify
Administrative Agent and Borrower of its inability to deliver any such forms,
certificates or other evidence.

(d)           Borrower shall not be required to pay
any additional amount to any Non-US Lender under clause (c) of
subsection 2.7B(ii), (1) with respect to any Tax required to be
deducted or withheld on the basis of the information, certificates or statements
of exemption such Lender chooses to transmit with an Internal Revenue Service
Form W-8IMY pursuant to subsection 2.7B(iii)(b)(2) or (2) if such Lender
shall have failed to satisfy the requirements of clause (a), (b) or (c)(1)
of this subsection 2.7B(iii); provided that if such Lender shall
have satisfied the requirements of subsection 2.7B(iii)(a) on the date
such Lender became a Lender, nothing in this subsection 2.7B(iii)(d) shall
relieve Borrower of its obligation to pay any amounts pursuant to subsection 2.7B(ii)(c)
in the event that, as a result of any change in any applicable law, treaty or
governmental rule, regulation or order, or any change in the interpretation,
administration or application thereof, such Lender is no longer properly
entitled to deliver forms, certificates or other evidence at a subsequent date
establishing the fact that such Lender is not subject to withholding as
described in subsection 2.7B(iii)(a).

(iv)          Refunds.  If Administrative Agent or a Lender receives
a refund of any Tax as to which it has been indemnified by Borrower or with
respect to which Borrower has paid additional amounts pursuant to this
Section 2.7B, it shall pay over such refund to Borrower (but only to the
extent of indemnity payments made, or additional amounts paid, by Borrower
under this Section 2.7B with respect to the Tax giving rise to such
refund), net of all out-of-pocket expenses of Administrative Agent or such
Lender (including any Tax imposed with respect to such refund) as is determined
by Administrative Agent or Lender in good faith and in its sole discretion, and
without interest (other than any interest paid by the relevant taxing or other
authority with respect to such refund); provided that Borrower, upon the
request of Administrative Agent or such Lender, agrees to repay as soon as
reasonably practicable the amount paid over to Borrower (plus any penalties,
interest or other charges imposed by the relevant taxing or other authority) to
Administrative Agent or such Lender in the event Administrative Agent or such
Lender is required to repay such refund to such taxing or other authority. This
Section 2.7B(iv) shall not be construed to require Administrative Agent or
any Lender to make available its Tax returns (or any other information relating
to its Taxes which it deems confidential) to Borrower or any other person.

C.    Capital Adequacy Adjustment.  If any Lender shall have
determined that the adoption, effectiveness, phase-in or applicability after
the Restatement Date of any law, rule or regulation (or any provision thereof)
regarding capital adequacy, or any change therein or in the interpretation or
administration thereof by any Government Authority charged with the

70

interpretation or administration
thereof, or compliance by any Lender with any guideline, request or directive
regarding capital adequacy (whether or not having the force of law) of any such
Government Authority, has or would have the effect of reducing the rate of
return on the capital of such Lender or any corporation controlling such Lender
as a consequence of, or with reference to, such Lender’s Loans or Commitments
or Letters of Credit or participations therein or other obligations hereunder
with respect to the Loans or the Letters of Credit to a level below that which
such Lender or such controlling corporation could have achieved but for such
adoption, effectiveness, phase-in, applicability, change or compliance (taking
into consideration the policies of such Lender or such controlling corporation
with regard to capital adequacy), then from time to time, within five Business
Days after receipt by Borrower from such Lender of the statement referred to in
subsection 2.8A, Borrower shall pay to such Lender such additional amount
or amounts as will compensate such Lender or such controlling corporation on an
after-tax basis for such reduction.

2.8                               Statement of Lenders;
Obligation of Lenders and Issuing Lenders to Mitigate.

A.            Statements.  Each Lender claiming compensation or
reimbursement pursuant to subsection 2.6D, 2.7 or 2.8B shall deliver to
Borrower (with a copy to Administrative Agent) a written statement, setting
forth in reasonable detail the basis of the calculation of such compensation or
reimbursement, which statement shall be conclusive and binding upon all parties
hereto absent manifest error.

B.    Mitigation.  Each Lender and Issuing Lender agrees that,
as promptly as practicable after the officer of such Lender or Issuing Lender
responsible for administering the Loans or Letters of Credit of such Lender or
Issuing Lender, as the case may be, becomes aware of the occurrence of an event
or the existence of a condition that would cause such Lender to become an
Affected Lender or that would entitle such Lender or Issuing Lender to receive
payments under subsection 2.7, use reasonable effort to make, issue,
fund or maintain the Commitments of such Lender or the Affected Loans or
Letters of Credit of such Lender or Issuing Lender through another lending or
letter of credit office of such Lender or Issuing Lender, if (i) as a
result thereof the circumstances which would cause such Lender to be an
Affected Lender would cease to exist or the additional amounts which would
otherwise be required to be paid to such Lender or Issuing Lender pursuant to
subsection 2.7 would be materially reduced and (ii) as determined by
such Lender or Issuing Lender in its sole discretion, such action would not
otherwise be disadvantageous to such Lender or Issuing Lender; provided
that such Lender or Issuing Lender will not be obligated to utilize such other
lending or letter of credit office pursuant to this subsection 2.8B unless
Borrower agrees to pay all incremental expenses incurred by such Lender or
Issuing Lender as a result of utilizing such other lending or letter of credit
office as described above.

2.9                               Replacement of a Lender.

If Borrower receives a
statement of amounts due pursuant to subsection 2.8A from a Lender, a
Revolving Lender defaults in its obligations to fund a Revolving Loan pursuant
to this Agreement, a Lender (a “Non-Consenting Lender”)
refuses to consent to an amendment,

 

71

modification or
waiver of this Agreement that, pursuant to subsection 10.6, requires
consent of 100% of the Lenders (and such amendment, modification or waiver
shall have been approved by Requisite Lenders) or 100% of the Lenders with
Obligations directly affected or a Lender becomes an Affected Lender (any such
Lender, a “Subject Lender”), so long as
(i) no Event of Default shall have occurred and be continuing and Borrower
has obtained a commitment from another Lender or an Eligible Assignee to
purchase at par the Subject Lender’s Loans and assume the Subject Lender’s
Commitments and all other obligations of the Subject Lender hereunder,
(ii) such Lender is not an Issuing Lender with respect to any Letters of
Credit outstanding (unless all such Letters of Credit are terminated or
arrangements acceptable to such Issuing Lender (such as a “back-to-back” letter
of credit) are made) and (iii), if applicable, the Subject Lender is unwilling
to withdraw the notice delivered to Borrower pursuant to subsection 2.8
and/or is unwilling to remedy its default upon 10 days prior written
notice to the Subject Lender and Administrative Agent, Borrower may require the
Subject Lender to assign all of its Loans and Commitments to such other Lender,
Lenders, Eligible Assignee or Eligible Assignees pursuant to the provisions of
subsection 10.1B; provided that, prior to or concurrently with such
replacement, (1) the Subject Lender shall have received payment in full of
all principal, interest, fees and other amounts (including an amount equal to
the amount of its Credit-Linked Deposit (if any) and all amounts under
subsections 2.6D, 2.7 and/or 2.8B (if applicable)) through such date of
replacement and a release from its obligations under the Loan Documents,
(2) the processing fee required to be paid by subsection 10.1B(i), if
applicable, shall have been paid to Administrative Agent by Borrower, and
(3) all of the requirements for such assignment contained in
subsection 10.1B, including, without limitation, the consent of
Administrative Agent (if required) and the receipt by Administrative Agent of
an executed Assignment Agreement executed by the assignee (Administrative Agent
being granted hereby an irrevocable power of attorney (which power is coupled
with an interest) to execute and deliver, on behalf of such Subject Lender as
assignor, any Assignment Agreement necessary to effectuate any assignment of
such Subject Lender’s interests hereunder in the circumstances contemplated by
this subsection 2.9) and other supporting documents, have been fulfilled, and
(4) in the event such Subject Lender is a Non-Consenting Lender,
each assignee shall consent, at the time of such assignment, to each matter in
respect of which such Subject Lender was a Non-Consenting Lender and Borrower
also requires each other Subject Lender that is a Non-Consenting Lender
to assign its Loans and Commitments. Alternatively, if a Lender is a
Non-Consenting Lender solely because it refused to consent to an amendment,
modification or waiver that required the consent of 100% of Lenders with
Obligations directly affected thereby (which amendment, modification or waiver
did not accordingly require the consent of 100% of all Lenders), the Loans and
Commitments of such Non-Consenting Lender that are subject to the assignments
required by this subsection 2.9 may, at the option of Borrower, include
only those Loans and Commitments that constitute the Obligations directly
affected by the amendment, modification or waiver to which such Non-Consenting
Lender refused to provide its consent. Without the consent of Administrative
Agent, the Credit-Linked Deposit funded by any Synthetic Letter of Credit
Lender shall not be released in connection with any assignment of its Synthetic
Letter of Credit Commitment, but shall instead be purchased by the relevant
assignee and continue to be held for application (if not already applied)
pursuant to subsections 3.3B(ii) and 3.3C(i)(b) in respect of such
assignee’s obligations under the Synthetic Letter of Credit Commitment assigned
to it.

72

2.10                        Incremental Term Loans.

(i)            Borrower may, by written notice to
Administrative Agent from time to time, request Incremental Term Loan
Commitments in an amount not to exceed the Incremental Term Loan Amount from
one or more Incremental Term Lenders, which may include any existing Lender; provided that each Incremental Term Lender, if not already a Lender
hereunder, shall be subject to the approval of Administrative Agent (which
approval shall not be unreasonably withheld or delayed). Such notice shall set
forth (a) the amount of the Incremental Term Loan Commitments being requested
(which shall be in minimum increments of $5,000,000 and a minimum amount of
$25,000,000 or such lesser amount equal to the remaining Incremental Term Loan
Amount), (b) the date on which such Incremental Term Loan Commitments are
requested to become effective (which shall not be less than 10 Business
Days nor more than 60 days after the date of such notice), and
(c) whether such Incremental Term Loan Commitments are commitments to make
additional U.S. Dollar Term Loans or commitments to make term loans with terms
different from the U.S. Dollar Term Loans (“Other Term
Loans”).

(ii)           Borrower and each Incremental Term
Lender shall execute and deliver to Administrative Agent an Incremental Term
Loan Assumption Agreement and such other documentation as Administrative Agent
shall reasonably specify to evidence the Incremental Term Loan Commitment of
each Incremental Term Lender. Each Incremental Term Loan Assumption Agreement
shall specify the terms of the Incremental Term Loans to be made thereunder; provided
that, without the prior written consent of the Requisite Lenders, (a) the
final maturity date of any Other Term Loans shall be no earlier than the Term
Loan Maturity Date, (b) the average life to maturity of the Other Term
Loans shall be no shorter than the average life to maturity of the U.S. Dollar
Term Loans and (c) if the initial yield on such Other Term Loans (as
determined by Administrative Agent to be equal to the sum of (1) the margin
above the Adjusted LIBOR Rate on such Other Term Loans and (2) if such Other
Term Loans are initially made at a discount or the Lenders making the same
receive a fee directly or indirectly from Parent, Borrower or any Subsidiary of
Borrower for doing so (the amount of such discount or fee, expressed as a
percentage of the Other Term Loans, being referred to herein as “OID”), the amount of such OID divided by the lesser of (A)
the average life to maturity of such Other Term Loans and (B) four) exceeds by
more than 50 basis points (the amount of such excess above 50 basis points
being referred to herein as the “Yield Differential”)
the LIBOR Rate Margin then in effect for U.S. Dollar Term Loans, then the LIBOR
Rate Margin then in effect for U.S. Dollar Term Loans shall automatically be
increased by the Yield Differential, effective upon the making of the Other
Term Loans. Administrative Agent shall promptly notify each Lender as to the
effectiveness of each Incremental Term Loan Assumption Agreement. Each of the
parties hereto hereby agrees that, upon the effectiveness of any Incremental
Term Loan Assumption Agreement, this Agreement shall be deemed amended to the
extent (but only to the extent) necessary to reflect the existence and terms of
the Incremental Term Loan Commitment and the Incremental Term Loans evidenced thereby.

73

(iii)          Notwithstanding the foregoing, no
Incremental Term Loan Commitment shall become effective under this
subsection 2.10 unless (a) on the date of such effectiveness, the
conditions set forth in subsections 4.2B(i), (ii), (iii) and (iv) shall be
satisfied, (b) after giving effect to the making of any Incremental Term Loans
and the use of the proceeds thereof, Borrower would be in pro forma
compliance with the financial covenants set forth in subsections 7.6A and 7.6B
as of and for the most recently ended period of four consecutive fiscal
quarters for which financial statements have been delivered pursuant to
subsection 6.1 (assuming for the purposes of subsection 7.6B that such
transactions occurred at the end of such period and for the purposes of
subsection 7.6A that such transactions occurred at the beginning of such
period), (c) Administrative Agent shall have received an Officer’s Certificate
of Borrower as to clauses (a) and (b) (with reasonably detailed calculations in
the case of clause (b)) dated such date, and (d) except as otherwise
specified in the applicable Incremental Term Loan Assumption Agreement,
Administrative Agent shall have received legal opinions, board resolutions and
other closing certificates reasonably requested by Administrative Agent and
consistent with those delivered on the Restatement Date under
subsection 4.1.

(iv)          Each of the parties hereto hereby
agrees that Administrative Agent may, in consultation with Borrower, take any
and all action as may be reasonably necessary to ensure that all Incremental
Term Loans (other than Other Term Loans), when originally made, are included in
each borrowing of outstanding U.S. Dollar Term Loans on a pro rata
basis. This may be accomplished by requiring each outstanding applicable LIBOR
Rate Loan to be converted into a Base Rate Loan on the date of each Incremental
Term Loan, or by allocating a portion of each Incremental Term Loan to each
outstanding applicable LIBOR Rate Loan on a pro rata basis.
Any conversion of LIBOR Rate Loans to Base Rate Loans required by the preceding
sentence shall be subject to subsection 2.6.  If any Incremental Term Loan is to be
allocated to an existing Interest Period for a LIBOR Rate Loan, then the interest
rate thereon for such Interest Period and the other economic consequences
thereof shall be as set forth in the applicable Incremental Term Loan
Assumption Agreement. In addition, to the extent any Incremental Term Loans are
not Other Term Loans, the scheduled amortization payments under
subsection 2.4A(i) required to be made after the making of such
Incremental Term Loans shall be ratably increased by the aggregate principal
amount of such Incremental Term Loans.

Section 3.              LETTERS OF CREDIT

3.1                               Issuance of Letters of
Credit and Lenders’ Purchase of Participations Therein.

A.            Letters
of Credit.

(i)            Revolving Letters of Credit. 
In addition to Borrower requesting that Revolving Lenders make Revolving
Loans pursuant to subsection 2.1A(i) and that Swing Line Lender make Swing
Line Loans pursuant to subsection 2.1A(ii), Borrower may request, in
accordance with the provisions of this subsection 3.1, from time to time
during the period from the Restatement Date to but excluding the 30th
day prior to the Revolving

 

74

Loan Commitment
Termination Date, that one or more Revolving Lenders issue Revolving Letters of
Credit payable on a sight basis for the account of Borrower for the purposes
specified in the definitions of Commercial Letters of Credit and Standby
Letters of Credit.  Subject to the terms
and conditions of this Agreement and in reliance upon the representations and
warranties of Borrower herein set forth, any one or more Revolving Lenders may,
but (except as provided in subsection 3.1B(iii)) shall not be obligated
to, issue such Revolving Letters of Credit in accordance with the provisions of
this subsection 3.1; provided that Borrower shall not request that
any Revolving Lender issue (and no Revolving Lender shall issue):

(a)           any Revolving Letter of Credit if, after giving effect to such
issuance, the Total Utilization of Revolving Loan Commitments would exceed the
Revolving Loan Commitments then in effect;

(b)           any Revolving Letter of Credit if, after giving effect to such
issuance, the Revolving Letter
of Credit Usage would exceed $35,000,000;

(c)           any Standby Letter of Credit having
an expiration date later than the earlier of (1) ten days prior to the
Revolving Loan Commitment Termination Date and (2) the date which is one
year from the date of issuance of such Standby Letter of Credit; provided
that the immediately preceding clause (2) shall not prevent any Revolving
Issuing Lender from agreeing that a Standby Letter of Credit will automatically
be extended for one or more successive periods not to exceed one year each
unless such Revolving Issuing Lender elects not to extend for any such
additional period; and provided, further, that such Revolving
Issuing Lender shall elect not to extend such Standby Letter of Credit if it
has knowledge that an Event of Default has occurred and is continuing (and has
not been waived in accordance with subsection 10.6) at the time such
Revolving Issuing Lender must elect whether or not to allow such extension;

(d)           any Standby Letter of Credit issued
for the purpose of supporting (1) trade payables or (2) any
Indebtedness constituting “antecedent debt” (as that term is used in
Section 547 of the Bankruptcy Code);

(e)           any Commercial Letter of Credit
having an expiration date (1) later than the earlier of (x) the date
which is 30 days prior to the Revolving Loan Commitment Termination Date
and (y) the date which is 180 days from the date of issuance of such
Commercial Letter of Credit or (2) that is otherwise unacceptable to the
applicable Revolving Issuing Lender in its reasonable discretion; or

(f)            any Revolving Letter of Credit
denominated in a currency other than Dollars.

(ii)           Synthetic Letters of Credit.  In addition, Borrower may request, in
accordance with the provisions of this subsection 3.1, from time to time during
the period

 

75

from the
Restatement Date to but excluding the 30th day prior to the Synthetic Letter of
Credit Facility Maturity Date, that one or more Synthetic Letter of Credit
Lenders issue Synthetic Letters of Credit payable on a sight basis for the
account of Borrower for the purposes specified in the definition of Standby
Letters of Credit.  Subject to the terms
and conditions of this Agreement and in reliance upon the representations and
warranties of Borrower herein set forth, any one or more Synthetic Letter of
Credit Lenders may, but (except as provided in subsection 3.1B(iii)) shall
not be obligated to, issue such Letter of Credit in accordance with the
provisions of this subsection 3.1; provided that Borrower shall not
request that any Synthetic Letter of Credit Lender issue (and no Synthetic
Letter of Credit Lender shall issue):

(a)  any Synthetic Letter of Credit if, after
giving effect to such issuance, the Total Utilization of Synthetic Letter of
Credit Commitments would exceed the lesser of (1) the Synthetic Letter of
Credit Commitments then in effect and (2) the aggregate amount of the
Credit-Linked Deposits outstanding at such time;

(b)  any Synthetic Letter of Credit having an
expiration date later than the earlier of (1) ten days prior to the Synthetic
Letter of Credit Facility Maturity Date and (2) the date which is one year from
the date of issuance of such Synthetic Letter of Credit; provided that
the immediately preceding clause (2) shall not prevent any Issuing Lender from
agreeing that a Synthetic Letter of Credit will automatically be extended for
one or more successive periods not to exceed one year each unless such
Synthetic Letter of Credit Issuing Lender elects not to extend for any such
additional period; and provided, further, that such Synthetic
Letter of Credit Issuing Lender shall elect not to extend such Synthetic Letter
of Credit if it has knowledge that an Event of Default has occurred and is
continuing (and has not been waived in accordance with subsection 10.6) at the
time such Synthetic Letter of Credit Issuing Lender must elect whether or not
to allow such extension;

(c)  any Synthetic Letter of Credit issued for the
purpose of supporting (1) trade payables or (2) any Indebtedness constituting “antecedent
debt” (as that term is used in Section 547 of the Bankruptcy Code); or

(d)  any Synthetic Letter of Credit denominated in
a currency other than Dollars.

B.    Mechanics of Issuance.

(i)            Request for Issuance.  Whenever Borrower desires the issuance of a
Letter of Credit, it shall deliver to the proposed Issuing Lender (with a copy
to Administrative Agent if Administrative Agent is not the proposed Issuing
Lender) a Request for Issuance of Letter of Credit, substantially in the form
of Exhibit III annexed hereto no later than 12:00 Noon (New York
City time) at least three Business Days (in the case of Standby Letters of
Credit) or five Business Days (in the case of Commercial Letters of Credit), or

76

in each case such
shorter period as may be agreed to by the Issuing Lender in any particular
instance, in advance of the proposed date of issuance.  The Issuing Lender, in its reasonable
discretion, may require changes in the text of the proposed Letter of Credit or
any documents described in or attached to the Request for Issuance.  In furtherance of the provisions of
subsection 10.8, and not in limitation thereof, Borrower may submit
Requests for Issuance by telefacsimile and Administrative Agent and Issuing
Lenders may rely and act upon any such Request for Issuance without receiving
an original signed copy thereof.  No
Letter of Credit shall require payment against a conforming demand for payment
to be made thereunder on the same business day (under the laws of the
jurisdiction in which the office of the Issuing Lender to which such demand for
payment is required to be presented is located) that such demand for payment is
presented if such presentation is made after 10:00 A.M. (in the time zone
of such office of the Issuing Lender) on such business day.

(ii)           Borrower shall notify the applicable
Issuing Lender (and Administrative Agent, if Administrative Agent is not such
Issuing Lender) prior to the issuance of any Letter of Credit in the event that
any of the matters to which Borrower is required to certify in the applicable
Request for Issuance is no longer true and correct as of the proposed date of
issuance of such Letter of Credit, and upon the issuance of any Letter of
Credit Borrower shall be deemed to have re-certified, as of the date of such
issuance, as to the matters to which Borrower is required to certify in the
applicable Request for Issuance.

(iii)          Determination of Issuing Lender.  (a) Upon receipt by a proposed Revolving
Issuing Lender of a Request for Issuance pursuant to subsection 3.1B(i)
requesting the issuance of a Revolving Letter of Credit, (1) in the event
Administrative Agent is the proposed Revolving Issuing Lender, Administrative
Agent shall be the Revolving Issuing Lender with respect to such Revolving
Letter of Credit, notwithstanding the fact that the Revolving Letter of Credit
Usage with respect to such Revolving Letter of Credit and with respect to all
other Revolving Letters of Credit issued by Administrative Agent, when
aggregated with Administrative Agent’s outstanding Revolving Loans and Swing
Line Loans, may exceed Administrative Agent’s Revolving Loan Commitment then in
effect, and (2) in the event any other Revolving Lender is the proposed
Revolving Issuing Lender, such Revolving Lender shall promptly notify Borrower
and Administrative Agent whether or not, in its sole discretion, it has elected
to issue such Revolving Letter of Credit, and (x) if such Revolving Lender
so elects to issue such Revolving Letter of Credit it shall be the Revolving
Issuing Lender with respect thereto and (y) if such Revolving Lender fails
to so promptly notify Borrower and Administrative Agent or declines to issue
such Revolving Letter of Credit, Borrower may request Administrative Agent or
another Revolving Lender to be the Revolving Issuing Lender with respect to
such Revolving Letter of Credit in accordance with the provisions of this
subsection 3.1B; and (b) upon receipt by a proposed Synthetic Letter
of Credit Issuing Lender of a Request for Issuance pursuant to subsection
3.1B(i) requesting the issuance of a Synthetic Letter of Credit, (1) in
the event Administrative Agent is the proposed Synthetic Letter of Credit
Issuing Lender, Administrative Agent 

77

shall be the
Synthetic Letter of Credit Issuing Lender with respect to such Synthetic Letter
of Credit, notwithstanding the fact that the Synthetic Letter of Credit Usage
with respect to such Synthetic Letter of Credit and with respect to all other
Synthetic Letters of Credit issued by Administrative Agent, may exceed
Administrative Agent’s Synthetic Letter of Credit Commitment then in effect,
and (2) in the event any other Synthetic Letter of Credit Lender is the
proposed Issuing Lender, such Synthetic Letter of Credit Lender shall promptly
notify Borrower and Administrative Agent whether or not, in its sole
discretion, it has elected to issue such Synthetic Letter of Credit, and
(x) if such Synthetic Letter of Credit Lender so elects to issue such
Synthetic Letter of Credit it shall be the Synthetic Letter of Credit Issuing
Lender with respect thereto and (y) if such Synthetic Letter of Credit
Lender fails to so promptly notify Borrower and Administrative Agent or
declines to issue such Synthetic Letter of Credit, Borrower may request
Administrative Agent or another Synthetic Letter of Credit Lender to be the
Synthetic Letter of Credit Issuing Lender with respect to such Synthetic Letter
of Credit in accordance with the provisions of this subsection 3.1B.

(iv)          Issuance of Letter of Credit.  Upon satisfaction or waiver (in accordance
with subsection 10.6) of the conditions set forth in subsection 4.3,
the Issuing Lender shall issue the requested Letter of Credit in accordance
with the Issuing Lender’s standard operating procedures.

(v)           Notification to Revolving Lenders
and Synthetic Letter of Credit Lenders. 
Upon the issuance of or amendment to any Letter of Credit the applicable
Issuing Lender shall promptly notify Administrative Agent and Borrower of such
issuance or amendment in writing and such notice shall be accompanied by a copy
of such Letter of Credit or amendment. 
Upon receipt of such notice (or, if Administrative Agent is the Issuing
Lender, together with such notice), Administrative Agent shall notify each
Revolving Lender or Synthetic Letter of Credit Lender, as the case may be, in
writing of such issuance or amendment and the amount of such Revolving Lender’s
or Synthetic Letter of Credit Lender’s, as the case may be, respective
participation in such Letter of Credit or amendment.

C.    Purchase of
Participations in Letters of Credit. 
Immediately upon the issuance of (i) each Revolving Letter of
Credit, each Revolving Lender shall be deemed to, and hereby agrees to, have
irrevocably purchased from the Revolving Issuing Lender a participation in such
Revolving Letter of Credit and any drawings honored thereunder in an amount
equal to such Revolving Lender’s Pro Rata Share of the maximum amount that is
or at any time may become available to be drawn thereunder and (ii) each
Synthetic Letter of Credit, each Synthetic Letter of Credit Lender shall be
deemed to, and hereby agrees to, have irrevocably purchased from the Synthetic
Letter of Credit Issuing Lender a participation in such Synthetic Letter of
Credit and any drawings honored thereunder in an amount equal to such Synthetic
Letter of Credit Lender’s Pro Rata Share of the maximum amount that is or at
any time may become available to be drawn thereunder.

78

3.2                               Letter of Credit Fees.

Borrower agrees to pay
the following amounts with respect to Letters of Credit issued hereunder:

(i)            with respect to any Revolving Letter
of Credit, (a) a fronting fee, payable directly to the applicable
Revolving Issuing Lender for its own account, equal to 0.25% per annum of the
daily amount available to be drawn under such Revolving Letter of Credit and
(b) a letter of credit fee, payable to Administrative Agent for the
account of Revolving Lenders, equal to the applicable LIBOR Rate Margin for the
Revolving Loans multiplied by the daily amount available to be drawn under such
Revolving Letter of Credit, each such fronting fee or letter of credit fee to
be payable in arrears on and to (but excluding) the last Business Day of March,
June, September and December of each year and computed on the basis of a 360-day
year for the actual number of days elapsed; and

(ii)           with respect to any Synthetic Letter
of Credit, (a) a fronting fee, payable directly to the applicable
Synthetic Letter of Credit Issuing Lender for its own account, equal to 0.25%
per annum of the daily amount available to be drawn under such Synthetic Letter
of Credit and (b) a letter of credit facility fee, payable to
Administrative Agent for the account of Synthetic Letter of Credit Lenders,
equal to (1) the sum of (x) the applicable LIBOR Rate Margin for the
Synthetic Letter of Credit Loans and (y) the Interest Rate Differential
multiplied by (2) the daily amount of the difference between (x) the
Synthetic Letter of Credit Commitments less (y) any outstanding Synthetic
Letter of Credit Loans, each such fronting fee or letter of credit fee to be
payable in arrears on and to (but excluding) the last Business Day of March,
June, September and December of each year and computed on the basis of a
360-day year for the actual number of days elapsed;

(iii)          with respect to the issuance,
amendment or transfer of each Letter of Credit and each payment of a drawing
made thereunder (without duplication of the fees payable under any of
clauses (i) - (ii) above), documentary and processing charges payable
directly to the applicable Issuing Lender for its own account in accordance with
such Issuing Lender’s standard schedule for such charges in effect at the time
of such issuance, amendment, transfer or payment, as the case may be.

(iv)          For purposes of calculating any fees
payable under clause (i) of this subsection 3.2, the daily
amount available to be drawn under any Letter of Credit shall be determined as
of the close of business on any date of determination.  Promptly upon receipt by Administrative Agent
of any amount described in clause (i)(b) or clause (ii)(b) of this
subsection 3.2, Administrative Agent shall distribute to each Revolving
Lender or Synthetic Letter of Credit Lender, as the case may be, its Pro Rata
Share of such amount.

3.3                               Drawings and Reimbursement
of Amounts Paid Under Letters of Credit.

A.            Responsibility of Issuing Lender
With Respect to Drawings.  In
determining whether to honor any drawing under any Letter of Credit by the
beneficiary thereof,

79

the Issuing Lender shall be responsible only to examine the
documents delivered under such Letter of Credit with reasonable care so as to
ascertain whether they appear on their face to be in accordance with the terms
and conditions of such Letter of Credit.

B.    Reimbursement
by Borrower of Amounts Paid Under Letters of Credit.

(i)                            Reimbursement by
Borrower of Amounts Paid Under Revolving Letters of Credit.  In the event a Revolving Issuing Lender has
determined to honor a drawing under a Revolving Letter of Credit issued by it,
such Revolving Issuing Lender shall immediately notify Borrower and
Administrative Agent, and Borrower shall reimburse such Revolving Issuing
Lender on or before the Business Day immediately following the date on which
such drawing is honored (the “Revolving LC Reimbursement
Date”) in an amount in Dollars and in same day funds equal to the
amount of such payment; provided that, anything contained in this
Agreement to the contrary notwithstanding, (a) unless Borrower shall have notified
Administrative Agent and such Revolving Issuing Lender prior to 10:00 A.M. (New
York City time) on the date such drawing is honored that Borrower intends to
reimburse such Revolving Issuing Lender for the amount of such payment with
funds other than the proceeds of Revolving Loans, Borrower shall be deemed to
have given a timely Notice of Borrowing to Administrative Agent requesting
Revolving Lenders to make Revolving Loans that are Base Rate Loans on the
Revolving LC Reimbursement Date in an amount in Dollars equal to the amount of
such payment and (b) subject to satisfaction or waiver of the conditions
specified in subsection 4.2B, Revolving Lenders shall, on the Revolving LC
Reimbursement Date, make Revolving Loans that are Base Rate Loans in the amount
of such payment, the proceeds of which shall be applied directly by
Administrative Agent to reimburse such Revolving Issuing Lender for the amount
of such payment; and provided, further, that if for any reason
proceeds of Revolving Loans are not received by such Revolving Issuing Lender
on the Revolving LC Reimbursement Date in an amount equal to the amount of such
payment, Borrower shall reimburse such Revolving Issuing Lender, on demand, in
an amount in same day funds equal to the excess of the amount of such payment
over the aggregate amount of such Revolving Loans, if any, which are so
received.  Nothing in this subsection
3.3B(i) shall be deemed to relieve any Revolving Lender from its obligation to
make Revolving Loans on the terms and conditions set forth in this Agreement,
and Borrower shall retain any and all rights it may have against any Revolving
Lender resulting from the failure of such Revolving Lender to make such
Revolving Loans under this subsection 3.3B.

(ii)           Reimbursement by Borrower of
Amounts Paid Under Synthetic Letters of Credit.  In the event a Synthetic Letter of Credit
Issuing Lender has determined to honor a drawing under a Synthetic Letter of
Credit issued by it, such Synthetic Letter of Credit Issuing Lender shall
immediately notify Borrower and Administrative Agent, and Borrower shall reimburse
such Synthetic Letter of Credit Issuing Lender on or before the Business Day
immediately following the date on which such drawing is honored (the “Synthetic Letter of Credit Reimbursement Date”) in an amount in Dollars and in same day
funds equal to the amount of such payment; provided that, anything
contained in this Agreement to the contrary notwithstanding, (a) unless
Borrower shall have 

80

notified
Administrative Agent and such Synthetic Letter of Credit Issuing Lender prior
to 10:00 A.M. (New York City time) on the date such drawing is honored that
Borrower intends to reimburse such Synthetic Letter of Credit Issuing Lender
for the amount of such payment with funds other than the proceeds of Synthetic
Letter of Credit Loans, Borrower shall be deemed to have given a timely Notice
of Borrowing to Administrative Agent requesting Synthetic Letter of Credit
Lenders to make Synthetic Letter of Credit Loans that are Base Rate Loans on
the Synthetic Letter of Credit Reimbursement Date in an amount in Dollars equal
to the amount of such payment and (b) subject to satisfaction or waiver of
the conditions specified in subsection 4.2B, Synthetic Letter of Credit Lenders
shall, on the Synthetic Letter of Credit Reimbursement Date, make Synthetic
Letter of Credit Loans that are Base Rate Loans in the amount of such payment,
the proceeds of which shall be applied directly by Administrative Agent to
reimburse such Synthetic Letter of Credit Issuing Lender for the amount of such
payment; provided  further, that each Synthetic Letter of Credit
Lender hereby irrevocably authorizes Administrative Agent to fund such
Synthetic Letter of Credit Lender’s Synthetic Letter of Credit Loans by
withdrawing an amount equal to the amount of each of such Synthetic Letter of
Credit Lender’s Synthetic Letter of Credit Loans from such Synthetic Letter of
Credit Lender’s Credit-Linked Deposit; and provided  further, that
if for any reason proceeds of Synthetic Letter of Credit Loans are not received
by such Synthetic Letter of Credit Issuing Lender on the Synthetic Letter of
Credit Reimbursement Date in an amount equal to the amount of such payment,
Borrower shall reimburse such Synthetic Letter of Credit Issuing Lender, on
demand, in an amount in same day funds equal to the excess of the amount of
such payment over the aggregate amount of such Synthetic Letter of Credit
Loans, if any, which are so received. 
Nothing in this subsection 3.3B(ii) shall be deemed to relieve any
Synthetic Letter of Credit Lender from its obligation to make Synthetic Letter
of Credit Loans on the terms and conditions set forth in this Agreement, and
Borrower shall retain any and all rights it may have against any Synthetic
Letter of Credit Lender resulting from the failure of such Synthetic Letter of
Credit Lender to make such Synthetic Letter of Credit Loans under this
subsection 3.3B.

C.    Payment by
Lenders of Unreimbursed Amounts Paid Under Letters of Credit.

(i)            (a) 
Payment by Revolving Lenders. 
In the event that Borrower shall fail for any reason to reimburse any
Revolving Issuing Lender as provided in subsection 3.3B(i) in an amount
equal to the amount of any payment by such Revolving Issuing Lender under a
Revolving Letter of Credit issued by it, such Revolving Issuing Lender shall
promptly notify Administrative Agent who will notify each other Revolving
Lender of the unreimbursed amount of such honored drawing and of such other
Revolving Lender’s respective participation therein based on such Revolving
Lender’s Pro Rata Share.  Each Revolving
Lender shall make available to Administrative Agent for the benefit of such
Revolving Issuing Lender an amount equal to its respective participation, in
Dollars and in same day funds, at the Funding and Payment Office, not later
than 12:00 Noon (New York City time) on the first Business Day after the
date notified by Administrative

81

Agent.  In the event that any Revolving Lender fails
to make available to Administrative Agent for the benefit of such Revolving
Issuing Lender on such Business Day the amount of such Revolving Lender’s
participation in such Revolving Letter of Credit as provided in this
subsection 3.3C(i)(a), such Revolving Issuing Lender shall be entitled to
recover such amount on demand from such Revolving Lender together with interest
thereon at the rate customarily used by such Revolving Issuing Lender for the
correction of errors among banks for three Business Days and thereafter at the
Base Rate.  Nothing in this
subsection 3.3C(i)(a) shall be deemed to prejudice the right of any
Revolving Lender to recover from any Revolving Issuing Lender any amounts made
available by such Revolving Lender to such Revolving Issuing Lender pursuant to
this subsection 3.3C(i)(a) in the event that it is determined by the final
judgment of a court of competent jurisdiction that the payment with respect to
a Letter of Credit by such Revolving Issuing Lender in respect of which payment
was made by such Revolving Lender constituted gross negligence or willful
misconduct on the part of such Revolving Issuing Lender.

(b)           Payment by Synthetic Letter of
Credit Lenders.  In the event that
Borrower shall fail for any reason to reimburse any Synthetic Letter of Credit
Issuing Lender as provided in subsection 3.3B(ii) in an amount equal to
the amount of any payment by such Synthetic Letter of Credit Issuing Lender
under a Synthetic Letter of Credit issued by it, such Synthetic Letter of
Credit Issuing Lender shall promptly notify Administrative Agent, who will,
upon request by any Synthetic Letter of Credit Lender, notify each Synthetic
Letter of Credit Lender of the unreimbursed amount of such honored drawing and
of such Synthetic Letter of Credit Lender’s respective participation therein based
on such Synthetic Letter of Credit Lender’s Pro Rata Share.  Each Synthetic Letter of Credit Lender hereby
irrevocably authorizes Administrative Agent to make such payment available to
such Synthetic Letter of Credit Issuing Lender on the first Business Day after
the date notified by Administrative Agent in an amount equal to such Synthetic
Letter of Credit Lender’s respective participation from such Synthetic Letter
of Credit Lender’s Credit-Linked Deposit. 
In the event that Administrative Agent reasonably determines that
applicable law or the order of any court or other Government Authority stays or
prohibits Administrative Agent from making available to such Synthetic Letter
of Credit Issuing Lender on such Business Day the full amount of each Synthetic
Letter of Credit Lender’s participation in such Synthetic Letter of Credit as
provided in this subsection 3.3C(i)(b), such Synthetic Letter of Credit
Issuing Lender shall, without further act, become the owner of, and succeed to
the rights of such Synthetic Letter of Credit Lender with respect to, a portion
of such Synthetic Letter of Credit Lender’s Credit-Linked Deposit in an amount
equal to the amount of the portion of such participation not so made available,
together with all interest, fees, amounts payable pursuant to
subsection 3.6D and all other amounts payable thereon.  Nothing in this subsection 3.3C(i)(b)
shall be deemed to prejudice the right of any Lender to recover from any
Synthetic Letter of Credit

82

Issuing Lender any
amounts made available by such Synthetic Letter of Credit Lender to such
Synthetic Letter of Credit Issuing Lender pursuant to this
subsection 3.3C(i)(b) in the event that it is determined by the final
judgment of a court of competent jurisdiction that the payment with respect to
a Synthetic Letter of Credit by such Synthetic Letter of Credit Issuing Lender
in respect of which payment was made by such Synthetic Letter of Credit Lender
constituted gross negligence or willful misconduct on the part of such
Synthetic Letter of Credit Issuing Lender.

(ii)           Distribution to Lenders of
Reimbursements Received From Borrower. 
(a)  In the event that any Revolving Issuing Lender shall have
been reimbursed by other Revolving Lenders pursuant to subsection 3.3C(i)
for all or any portion of any payment by such Issuing Lender under a Revolving
Letter of Credit issued by it, such Issuing Lender shall distribute to
Administrative Agent on behalf of each other Revolving Lender that has paid all
amounts payable by it under subsection 3.3C(i) with respect to such
payment such other Revolving Lender’s Pro Rata Share of all payments
subsequently received by such Issuing Lender from Borrower in reimbursement of
such payment under such Letter of Credit when such payments are received.  Any such distribution shall be made to such
other Revolving Lender.

(b)(1)  In the
event that any Synthetic Letter of Credit Issuing Lender shall have been
reimbursed by Synthetic Letter of Credit Lenders pursuant to subsection 3.3C(i)
for all or any portion of any payment by such Issuing Lender under a Synthetic
Letter of Credit issued by it, such Issuing Lender shall distribute to
Administrative Agent on behalf of each Synthetic Letter of Credit Lender that
has paid all amounts payable by it under subsection 3.3C(i) with respect
to such payment such Synthetic Letter of Credit Lender’s Pro Rata Share of all
payments subsequently received by such Issuing Lender from Borrower in
reimbursement of such payment under such Letter of Credit when such payments
are received.  Any such distribution
shall, subject to the last sentence of this subsection 3.3C(ii)(b)(1), be
made to such Synthetic Letter of Credit Lender. 
Any distribution to be made to the Synthetic Letter of Credit Lenders
pursuant to this subsection 3.3C(ii)(b)(1) shall, to the extent of the
excess of the Synthetic Letter of Credit Commitments over the Total Utilization
of Synthetic Letter of Credit Commitments, be retained by Administrative Agent
and applied to increase the amount of each Synthetic Letter of Credit Lender’s
Credit-Linked Deposit in an amount equal to such Synthetic Letter of Credit
Lender’s Pro Rata Share of such excess.

                (2)  Without limiting the obligations of
Borrower under subsection 2.6D or subsection 3.6D, in the event that
a drawing under a Synthetic Letter of Credit (A) that has been reimbursed
with the proceeds of Synthetic Letter of Credit Loans that were funded by
withdrawals from the Credit-Linked Deposits as provided in subsection 3.3B(ii)
or (B) for which payment to the Synthetic Letter of Credit Issuing Lender
by the Synthetic Letter of Credit Lenders has been funded by withdrawals from
the Credit-Linked Deposits as provided in subsection 3.3C(i)(b), in either
case shall be reimbursed by Borrower on a day other than the last day of an
interest period or period of investment applicable to the Credit-Linked
Deposits, Administrative Agent may elect to

83

invest the amount so
reimbursed in overnight or short-term cash equivalent investments until the end
of the interest period or scheduled investment termination date at the time in
effect and Borrower shall pay to Administrative Agent on the last day of such
interest period or such scheduled investment termination date, the amount, if
any, by which the interest accrued on a like amount of the Credit-Linked
Deposits at the Adjusted LIBOR Rate for the interest period or period of
investment in effect therefor shall exceed the interest actually earned through
the investment of the amount so reimbursed for the period from the date of such
reimbursement through the end of the applicable interest period or period of
investment, as determined by Administrative Agent in good faith (which
determination shall, absent manifest error, be final and conclusive and binding
on all parties hereto) and set forth in the request for payment delivered to
Borrower.  No delay in, or failure to
deliver, any such request for payment by Administrative Agent shall in any way
relieve or diminish the obligations of Borrower to pay to Administrative Agent
the amount of interest required to be paid as provided above in the preceding
sentence.  In the event that Borrower
shall fail to pay any amount due under this paragraph, the return payable by
Administrative Agent to the Synthetic Letter of Credit Lenders on their
Credit-Linked Deposits under subsection 3.6B(iii) shall be reduced by a
corresponding amount, and the Synthetic Letter of Credit Lenders shall, without
further act, succeed to the rights of Administrative Agent with respect to such
amount due from Borrower, ratably according to the amounts of their respective
Credit-Linked Deposits.

D.    Interest on
Amounts Paid Under Letters of Credit.

(i)            Payment of Interest by Borrower.  Borrower agrees to pay to each Issuing
Lender, with respect to payments under any Letters of Credit issued by it,
interest on the amount paid by such Issuing Lender in respect of each such
payment from the date a drawing is honored to but excluding the date such
amount is reimbursed by Borrower (including any such reimbursement out of the
proceeds of Revolving Loans or Synthetic Letter of Credit Loans pursuant to
subsection 3.3B) at a rate equal to (a) with respect to Revolving
Letters of Credit, (1) for the period from the date such drawing is
honored to but excluding the Revolving LC Reimbursement Date, the rate then in
effect under this Agreement with respect to Revolving Loans that are Base Rate
Loans and (2) thereafter, a rate which is 2% per annum in excess of the
rate of interest otherwise payable under this Agreement with respect to
Revolving Loans that are Base Rate Loans, and (b) with respect to
Synthetic Letters of Credit, (1) for the period from the date such drawing
is honored to but excluding the Synthetic Letter of Credit Reimbursement Date,
the rate then in effect under this Agreement with respect to Term Loans that
are Base Rate Loans and (2) thereafter, a rate which is 2% per annum in
excess of the rate of interest otherwise payable under this Agreement with
respect to Term Loans that are Base Rate Loans. 
Interest payable pursuant to this subsection 3.3D(i) shall be
computed on the basis of a 360-day year for the actual number of days elapsed
in the period during which it accrues and shall be payable on demand or, if no
demand is made, on the date on which the related drawing under a Letter of
Credit is reimbursed in full.

(ii)           Distribution of Interest Payments
by Issuing Lender.  Promptly upon
receipt by any Issuing Lender of any payment of interest pursuant to
subsection 3.3D(i)

84

with respect to a
payment under a Letter of Credit issued by it, (a) such Issuing Lender
shall distribute to Administrative Agent on behalf of each other Revolving Lender
or Synthetic Letter of Credit Lender, as the case may be, out of the interest
received by such Issuing Lender in respect of the period from the date such
drawing is honored to but excluding the date on which such Issuing Lender is
reimbursed for the amount of such payment (including any such reimbursement out
of the proceeds of Revolving Loans or Synthetic Letter of Credit Loans pursuant
to subsection 3.3B), the amount that such other Revolving Lender or
Synthetic Letter of Credit Lender, as the case may be, would have been entitled
to receive in respect of the letter of credit fee that would have been payable
in respect of such Letter of Credit for such period pursuant to
subsection 3.2 if no drawing had been honored under such Letter of Credit,
and (b) in the event such Issuing Lender shall have been reimbursed by
other Revolving Lenders or Synthetic Letter of Credit Lenders, as the case may
be, pursuant to subsection 3.3C(i) for all or any portion of such payment,
such Issuing Lender shall distribute to Administrative Agent on behalf of each
other Revolving Lender or Synthetic Letter of Credit Lender, as the case may
be, that has paid all amounts payable by it under subsection 3.3C(i) with
respect to such payment such other Revolving Lender’s Pro Rata Share or
Synthetic Letter of Credit Lender’s Pro Rata Share, as the case may be, of any
interest received by such Issuing Lender in respect of that portion of such
payment so reimbursed by other Revolving Lenders or Synthetic Letter of Credit
Lenders, as the case may be, for the period from the date on which such Issuing
Lender was so reimbursed by other Revolving Lenders or Synthetic Letter of
Credit Lenders, as the case may be, to but excluding the date on which such
portion of such payment is reimbursed by Borrower.  Administrative Agent shall distribute any
such amounts to a Revolving Lender or Synthetic Letter of Credit Lender, as the
case may be.

3.4                               Obligations Absolute.

The obligation of
Borrower to reimburse each Revolving Issuing Lender and each Synthetic Letter
of Credit Lender, as the case may be, for payments under the Letters of Credit
issued by it, and to repay any Revolving Loans made by Revolving Lenders
pursuant to subsection 3.3B(i), and any Synthetic Letter of Credit Loans
made by Synthetic Letter of Credit Lenders pursuant to
subsection 3.3B(ii), as the case may be, and the obligations of Revolving
Lenders and Synthetic Letter of Credit Lenders, as the case may be, under
subsection 3.3C(i)(a) and 3.3C(i)(b), respectively, shall be unconditional
and irrevocable and shall be paid strictly in accordance with the terms of this
Agreement under all circumstances including any of the following circumstances:

(i)            any lack of validity or
enforceability of any Letter of Credit;

(ii)           the existence of any claim, set-off,
defense or other right which Borrower or any Lender may have at any time
against a beneficiary or any transferee of any Letter of Credit (or any Persons
for whom any such transferee may be acting), any Issuing Lender or other Revolving
Lender or Synthetic Letter of Credit Lender or any other Person or, in the case
of a Revolving Lender or Synthetic Letter of Credit Lender, against Borrower,
whether in connection with this Agreement, the transactions contemplated

 

85

herein or any
unrelated transaction (including any underlying transaction between Borrower or
one of its Subsidiaries and the beneficiary for which any Letter of Credit was
procured);

(iii)          any draft or other document presented
under any Letter of Credit proving to be forged, fraudulent, invalid or
insufficient in any respect or any statement therein being untrue or inaccurate
in any respect;

(iv)          payment by the applicable Issuing
Lender under any Letter of Credit against presentation of a draft or other
document which does not substantially comply with the terms of such Letter of
Credit;

(v)           any adverse change in the business,
operations, properties, assets, condition (financial or otherwise) or prospects
of Parent or any of its Subsidiaries;

(vi)          any breach of this Agreement or any
other Loan Document by any party thereto;

(vii)         any other circumstance or happening
whatsoever, whether or not similar to any of the foregoing; or

(viii)        the fact that an Event of Default or a
Potential Event of Default shall have occurred and be continuing;

provided, in each case, that payment by the
applicable Issuing Lender under the applicable Letter of Credit shall not have
constituted gross negligence or willful misconduct of such Issuing Lender under
the circumstances in question (as determined by a final judgment of a court of
competent jurisdiction).

3.5                               Nature of Issuing Lenders’
Duties.

As between Borrower and
any Issuing Lender, Borrower assumes all risks of the acts and omissions of, or
misuse of the Letters of Credit issued by such Issuing Lender by, the
respective beneficiaries of such Letters of Credit.  In furtherance and not in limitation of the
foregoing, such Issuing Lender shall not be responsible for:  (i) the form, validity, sufficiency,
accuracy, genuineness or legal effect of any document submitted by any party in
connection with the application for and issuance of any such Letter of Credit,
even if it should in fact prove to be in any or all respects invalid,
insufficient, inaccurate, fraudulent or forged; (ii) the validity or
sufficiency of any instrument transferring or assigning or purporting to
transfer or assign any such Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason; (iii) failure of the beneficiary of
any such Letter of Credit to comply fully with any conditions required in order
to draw upon such Letter of Credit; (iv) errors, omissions, interruptions
or delays in transmission or delivery of any messages, by mail, cable,
telegraph, telex or otherwise, whether or not they be in cipher;
(v) errors in interpretation of technical terms; (vi) any loss or
delay in the transmission or otherwise of any document required in order to
make a drawing under any such Letter of Credit

 

86

or of the proceeds
thereof; (vii) the misapplication by the beneficiary of any such Letter of
Credit of the proceeds of any drawing under such Letter of Credit; or
(viii) any consequences arising from causes beyond the control of such
Issuing Lender, including any act or omission by a Government Authority, and
none of the above shall affect or impair, or prevent the vesting of, any of such
Issuing Lender’s rights or powers hereunder.

In furtherance and
extension and not in limitation of the specific provisions set forth in the
first paragraph of this subsection 3.5, any action taken or omitted by any
Issuing Lender under or in connection with the Letters of Credit issued by it
or any documents and certificates delivered thereunder, if taken or omitted in
good faith, shall not put such Issuing Lender under any resulting liability to
Borrower.

Notwithstanding anything
to the contrary contained in this subsection 3.5, Borrower shall retain
any and all rights it may have against any Issuing Lender for any liability
arising solely out of the gross negligence or willful misconduct of such
Issuing Lender, as determined by a final judgment of a court of competent
jurisdiction.

3.6                               Credit-Linked Deposits.

A.            Credit-Linked Deposits.  On the
Restatement Date, each Synthetic Letter of Credit Lender shall have deposited
with Administrative Agent such Synthetic Letter of Credit Lender’s
Credit-Linked Deposit.  The Credit-Linked
Deposits have been and shall continue to be held by Administrative Agent in (or
credited to) one or more operating and/or investment accounts of, and
established by, Administrative Agent under its sole and exclusive control and
maintained at the office of Administrative Agent located at 11 Madison Avenue,
New York, New York 10010 (or such other office as Administrative Agent shall
from time to time designate to the Synthetic Letter of Credit Lenders).  Administrative Agent shall use the Credit-Linked
Deposits (i) to fund the Synthetic Letter of Credit Loans on behalf of the
Synthetic Letter of Credit Lenders pursuant to subsection 3.3B(ii) and
(ii) to fund the payments on behalf of the Synthetic Letter of Credit
Lenders to be made to the Synthetic Letter of Credit Issuing Lenders as (and to
the extent) required by subsection 3.3C(i)(b).  Administrative Agent shall not be required to
return any portion of a Credit-Linked Deposit to the holder of such
Credit-Linked Deposit unless either (I) the Synthetic Letter of Credit
Commitments have been terminated and either (A) all Synthetic Letters of
Credit have been cancelled and returned to the respective Issuing Lender or
(B) pursuant to Section 8 Borrower has provided cash collateral in
accordance with the Security Agreement for the maximum amount that may at any
time be drawn under all Synthetic Letters of Credit then outstanding or
(II) the Synthetic Letter of Credit Commitments have been reduced and, as
a result of such reduction, the amount of such Synthetic Letter of Credit
Lender’s Credit-Linked Deposit exceeds the greater of (A) the amount of
such Synthetic Letter of Credit Lender’s Synthetic Letter of Credit Commitment
and (B) the sum of such Synthetic Letter of Credit Lender’s Pro Rata Share
of the undrawn portion of all outstanding Synthetic Letters of Credit (to the
extent of so much of such undrawn portion as has not been adequately secured by
the posting of cash collateral by Borrower in accordance with the Security
Agreement) and such Synthetic Letter of Credit Lender’s Pro Rata Share of all
unreimbursed drawings under Synthetic Letters of Credit.  No Person other than Administrative Agent
shall have a right of withdrawal from any Credit-Linked Deposit or any other
right or power with

 

87

respect to the Credit-Linked Deposits.  Notwithstanding anything herein to the
contrary, the obligation of each Synthetic Letter of Credit Lender to fund its
participation in Synthetic Letters of Credit shall be satisfied in full upon
the funding of its Credit-Linked Deposit (except that such obligation shall be
restored in the event that Administrative Agent reasonably determines that
applicable law or the order of any Government Authority prohibits Administrative
Agent from using a Synthetic Letter of Credit Lender’s Credit-Linked Deposit as
described above due to the bankruptcy or insolvency of such Synthetic Letter of
Credit Lender or due to any Lien in favor of creditors of such Synthetic Letter
of Credit Lender).

B.            Use and Investment of Credit-Linked Deposits. 
Each of Administrative Agent, each Issuing Lender and each Synthetic
Letter of Credit Lender hereby acknowledges and agrees (i) that each
Synthetic Letter of Credit Lender has funded its Credit-Linked Deposit to
Administrative Agent for application to fund such Lender’s obligation to make
Synthetic Letter of Credit Loans in the manner contemplated by
subsection 3.3B or to make available an amount equal to its respective
participation in Synthetic Letters of Credit in the manner contemplated by
subsection 3.3C, (ii) that Administrative Agent may invest the funds
on deposit in the Credit-Linked Deposits in such investments as may be
determined from time to time by Administrative Agent in its discretion and
(iii) that Administrative Agent shall pay to each holder of a
Credit-Linked Deposit a return on such Credit-Linked Deposit (except as
otherwise provided in subsection 3.3C(ii)(b)(2) or subsection 3.6E)
equal to the excess of the Adjusted LIBOR Rate for a 3-month interest period
(or a shorter period, as necessary to avoid any interest period extending
beyond the stated expiration date of the Synthetic Letter of Credit relating to
such Credit-Linked Deposit) over the Interest Rate Differential, in arrears on
the last day of the interest period applicable to such Credit-Linked Deposit
(or, if earlier, the date on which an amount on deposit in such Credit-Linked
Deposit is either (x) used to fund a payment under
subsection 3.3B(ii) or 3.3C(i)(b), or (y) returned to the holder of
such Credit-Linked Deposit).

C.            Ownership of Credit-Linked Deposits. 
Borrower shall have no right, title or interest in or to the
Credit-Linked Deposits, it being acknowledged and agreed by the parties hereto
that the funding of the Credit-Linked Deposits by the Synthetic Letter of
Credit Lenders and the application of the Credit-Linked Deposits in the manner
contemplated by subsections 3.3B and 3.3C constitute agreements among
Administrative Agent, each Issuing Lender and each Synthetic Letter of Credit
Lender with respect to the participations in the Synthetic Letters of Credit
and do not constitute any loan or extension of credit to Borrower directly by
the Synthetic Letter of Credit Lenders.

D.            Compensation for Breakage and Other Costs. 
In the event that a drawing is made under a Synthetic Letter of Credit
on a date other than the last day of an interest period or period of investment
with respect to the Credit-Linked Deposits relating to such Letter of Credit,
Borrower shall compensate Administrative Agent, upon written request by
Administrative Agent pursuant to subsection 2.8, for all reasonable
losses, expenses and liabilities (including any interest paid by Administrative
Agent to lenders of funds borrowed by it to make or carry any payments to an
Issuing Lender while any investments with respect to a Credit-Linked Deposit
were being liquidated) that Administrative Agent may sustain as a result of
such event.  Without limiting the
foregoing, if any Credit-Linked Deposits previously withdrawn as provided
herein shall be subsequently reimbursed by 
Borrower or any other Loan

 

88

Party other than on the last day of a period of
investment with respect to the Credit-Linked Deposits, Administrative Agent
shall invest the amount so reimbursed in overnight or short-term cash
equivalent investments until the end of such period of investment and Borrower
shall pay to Administrative Agent, upon Administrative Agent’s request
therefor, the amount, if any, by which the interest accrued on a like amount of
the Credit-Linked Deposits at the Adjusted LIBOR Rate for such period of
investment shall exceed the interest earned through the investment of the
amount so reimbursed for the period from the date of such reimbursement through
the end of such period of investment, as determined by Administrative Agent
(such determination to be conclusive absent manifest error) and set forth in
the request for payment delivered to Borrower. 
If Borrower shall fail to pay an amount due under the preceding
sentence, the interest payable by Administrative Agent to the applicable
Lenders on their Credit-Linked Deposits under subsection 3.6B shall be
correspondingly reduced and each such Lender shall without further act succeed,
ratably in accordance with its Pro Rata Share, to the rights of Administrative
Agent with respect to such amount.  In
addition, Borrower shall pay to Administrative Agent from time to time upon
demand Administrative Agent’s actual and reasonable administrative costs for
investing the Credit-Linked Deposits. 
Without limiting the obligations of the Lenders under
subsection 9.4 of this Agreement, and without limiting the obligations of
Borrower under this paragraph, all amounts payable by Borrower under this
paragraph shall be indemnified by the holders of the affected Credit-Linked
Deposits in proportion to the amount of their respective affected Credit-Linked
Deposits to the extent not paid by Borrower.

E.             Change in Circumstances.  If
Administrative Agent is not offering Dollar deposits (in the applicable
amounts) in the London interbank market, or if Administrative Agent determines
that adequate and fair means do not exist for ascertaining the Adjusted LIBOR
Rate for the Credit-Linked Deposits (or any part of any thereof), then the
Credit-Linked Deposits (or such parts, as applicable) shall be invested so as
to earn a return equal to the greater of the Federal Funds Effective Rate and a
rate determined by Administrative Agent in accordance with banking industry
rules on interbank compensation.

Section
4.              CONDITIONS TO LOANS AND
LETTERS OF CREDIT

The obligations of
Lenders to make Loans and the issuance of Letters of Credit hereunder are
subject to the satisfaction of the following conditions.

4.1                               Conditions to Supplemental
Term Loans.

The obligations of
Lenders to make the Supplemental Term Loans on the Restatement Date are, in
addition to the conditions precedent specified in subsection 4.2, subject
to prior or concurrent satisfaction of the following conditions:

A.            Loan Party Documents.  On or before the Restatement Date, Borrower
shall, and shall cause each other Loan Party to, deliver to Lenders (or to
Administrative Agent with sufficient originally executed copies, where
appropriate, for each Lender) the following with respect to Borrower or such
Loan Party, as the case may be, each, unless otherwise noted, dated the
Restatement Date:

 

89

(i)            A certificate, dated the Restatement
Date and signed by the Secretary or an Assistant Secretary of Parent and
Borrower, certifying that (A) except as set forth on any schedule attached
thereto, the Organizational Documents of Parent, Borrower and each other Loan
Party previously delivered on the Original Closing Date (or such later date on
which such Person became a Loan Party) have not been amended since the date of
such delivery, (B) attached thereto are resolutions duly adopted by the
Governing Body of Parent, Borrower and each other Loan Party approving and
authorizing the execution, delivery and performance of the Amendment Agreement
(including Exhibit A thereto in the form of this Agreement) and the
other Loan Documents to which such Person is a party, as applicable, and, in
the case of Borrower, the borrowings hereunder, and that such resolutions have
not been modified, rescinded or amended and are in full force and effect, (C)
attached thereto is a certificate as to the good standing of Parent, Borrower
and each other Loan Party, each dated as of a recent date prior to the
Restatement Date from the Secretary of State (or equivalent Government
Authority) of the state of its organization, and (D) as to the incumbency and
specimen signature of each officer executing the Amendment Agreement and any
other Loan Document or any other document delivered in connection therewith on
behalf of such Loan Party;

(ii)           A certificate of another officer as
to the incumbency and specimen signature of the Secretary or Assistant
Secretary executing the certificate pursuant to clause (i) above;

(iii)          Executed originals of the Loan
Documents being entered into on the Restatement Date to which such Person is a
party; and

(iv)          Such other documents as Administrative
Agent or Co-Arrangers may reasonably request.

B.    Fees.  Borrower shall have paid to Administrative
Agent, for distribution (as appropriate) to Administrative Agent and Lenders,
all fees and other amounts due and payable on or prior to the Restatement Date,
including (i) all accrued and unpaid fees pursuant to subsection 3.2 in
respect of the LC Facility and the Existing Revolving Credit Facility, (ii) all
accrued and unpaid commitment fees pursuant to subsection 2.3 in respect of the
Existing Revolving Credit Facility and (iii) to the extent invoiced,
reimbursement or payment of all out-of-pocket expenses required to
reimbursed or paid by Borrower hereunder or under any other Loan Document.

C.    Representations
and Warranties; No Default; Performance of Agreements.  Borrower shall have delivered to
Administrative Agent an Officer’s Certificate, in form and substance
satisfactory to Administrative Agent, confirming compliance with the conditions
precedent set forth in subsections 4.2B(i), (ii), (iii) and (iv).

D.    Opinions of
Counsel to Loan Parties. 
Administrative Agent shall have received, on behalf of itself and
Lenders, originally executed copies of a written opinion of (i) Mayer, Brown, Rowe & Maw LLP, counsel for the Loan Parties and
(ii) each local counsel set forth on Schedule 4.1D annexed hereto, in
each case (a) in form and substance reasonably

90

satisfactory to Administrative
Agent and its counsel, (b) addressed to Administrative Agent, Lenders and
Issuing Lenders, (c) dated as of the Restatement Date and (d) covering such
matters as Administrative Agent acting on behalf of Lenders and Issuing Lenders
may reasonably request (this Agreement constituting a written request by
Borrower to such counsel to deliver such opinions to Administrative Agent).

E.     Amendment
Agreement.  The IPO Amendments (as
defined in the Amendment Agreement) and the amendment and restatement of the
Existing Credit Agreement effected thereby in connection therewith pursuant to
the Amendment Agreement shall have become effective in accordance with its
terms.

F.     Solvency
Assurances.  On the Restatement
Date, Administrative Agent and Lenders shall have received a Financial Condition Certificate dated the Restatement Date and signed
by the chief financial officer of Borrower, substantially in the
form of Exhibit X annexed hereto and with appropriate attachments,
in each case demonstrating that, after giving effect to the consummation of the
transactions contemplated by the Loan Documents, each of Parent, Borrower and
each Subsidiary Guarantor will be Solvent.

G.    Necessary
Governmental Authorizations and Consents; Expiration of Waiting Periods, Etc.  Borrower shall have obtained all material
Governmental Authorizations and all consents of other Persons, in each case
that are necessary or advisable in connection with the transactions
contemplated by the Loan Documents and the continued operation of the business
conducted by Parent and its Subsidiaries in substantially the same manner as
conducted prior to the Restatement Date. 
Each such Governmental Authorization and consent shall be in full force
and effect, except in a case where the failure to obtain or maintain a
Governmental Authorization or consent, either individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect.  All applicable waiting periods shall have
expired without any action being taken or threatened by any competent authority
that would restrain, prevent or otherwise impose material adverse conditions on
the transactions contemplated by the Loan Documents or the financing
thereof.  No action, request for stay,
petition for review or rehearing, reconsideration, or appeal with respect to
any of the foregoing shall be pending, and the time for any applicable
Government Authority to take action to set aside its consent on its own motion
shall have expired.

H.    Security
Interests; Collateral Documents. 
The Collateral Documents shall be in full force and effect on the
Restatement Date, and each document (including Uniform Commercial Code
financing statements and modifications to the Mortgages referred to in
subsection 5.16B (and, to the extent reasonably requested by
Administrative Agent, opinions of local counsel relating to such Mortgage modifications
in form and substance reasonably satisfactory to Administrative Agent and title
insurance policies or, to the extent available, bring down endorsements to the
existing title insurance policies previously issued to Administrative Agent, in
each case dated as of the Restatement Date, insuring the Lien of each Mortgage
as a First Priority Lien, together with such endorsements as Administrative
Agent shall reasonably request)) required by law or reasonably requested by
Administrative Agent to be filed, registered or recorded in order to create or
continue in favor of Administrative Agent, for the benefit of Lenders, a valid,
legal and, if applicable, upon such filing and recording perfected First
Priority

 

91

security interest in the entire
personal and mixed property Collateral shall have been delivered to
Administrative Agent.  The Pledged
Collateral shall be duly and validly pledged under the Collateral Documents to
Administrative Agent, for the benefit of Lenders, and certificates representing
such Pledged Collateral, accompanied by instruments of transfer and stock
powers endorsed in blank, shall have been delivered to Administrative Agent.

I.      Consummation of IPO and Refinancing Transactions.  Parent and Borrower shall have
consummated (or, substantially contemporaneously with the making of the
Supplemental Term Loans on the Restatement Date, shall consummate) (i) the
IPO in accordance with applicable law and the rules and regulations of the
Securities and Exchange Commission (and shall have received the IPO Proceeds),
(ii) the Senior Subordinated Notes Repurchase (and, if fewer than all the
Senior Subordinated Notes shall have been so purchased, the Senior Subordinated
Note Indenture shall have been amended pursuant to the Senior Subordinated
Notes Consent Solicitation), all in accordance with applicable law and the
Senior Subordinated Note Indenture, (iii) the Parent Junior Subordinated
Notes Repurchase, (iv) the Sponsor Preferred Stock Redemption and (v) the
Parent Common Stock Repurchase.

J.     Existing Indebtedness to Remain Outstanding.  Administrative Agent shall have
received an Officer’s Certificate of Borrower stating that, after giving effect
to the transactions contemplated by this Agreement, the Loan Parties shall not
have outstanding any Indebtedness or preferred equity interests other than
Indebtedness under the Loan Documents and other Indebtedness permitted pursuant
to subsection 7.1.

K.    PATRIOT
ACT.  The Lenders shall have received to
the extent requested, all documentation and other information required by
regulatory authorities under applicable “know your customer” and anti-money
laundering rules and regulations, including the USA PATRIOT Act.

4.2                               Conditions to All Loans.

The obligations of
Lenders to make Loans on each Funding Date are subject to the following further
conditions precedent:

A.    Administrative Agent shall have received before that
Funding Date, in accordance with the provisions of subsection 2.1B, an
originally executed Notice of Borrowing, in each case signed by a duly
authorized Officer of Borrower.

B.    As of that Funding Date:

(i)            The representations and warranties
contained herein and in the other Loan Documents shall be true, correct and
complete in all material respects on and as of that Funding Date to the same
extent as though made on and as of that date, except to the extent such
representations and warranties specifically relate to an earlier date, in which
case such representations and warranties shall have been true, correct and
complete in all material respects on and as of such earlier date; provided
that where a representation and

 

92

warranty is already
qualified as to materiality, the materiality qualifier in this clause shall be
disregarded for purposes of this condition;

(ii)           No event shall have occurred and be
continuing or would result from the consummation of the borrowing contemplated
by such Notice of Borrowing that would constitute an Event of Default or a Potential
Event of Default;

(iii)          Each Loan Party shall have performed
in all material respects all agreements and satisfied all conditions which this
Agreement provides shall be performed or satisfied by it on or before that
Funding Date; and

(iv)          No order, judgment or decree of any
arbitrator or Government Authority shall purport to enjoin or restrain any
Lender from making the Loans to be made by it on that Funding Date.

4.3                               Conditions to Letters of
Credit.

The issuance of any
Letter of Credit hereunder (whether or not the applicable Issuing Lender is
obligated to issue such Letter of Credit) is subject to the following
conditions precedent:

A.            On or before the date of issuance
of such Letter of Credit, Administrative Agent shall have received, in accordance
with the provisions of subsection 3.1B(i), an originally executed Request
for Issuance (or a facsimile copy thereof) in each case signed by a duly
authorized Officer of Borrower, together with all other information specified
in subsection 3.1B(i) and such other documents or information as the
applicable Issuing Lender may reasonably require in connection with the
issuance of such Letter of Credit.

B.            On the date of issuance of such
Letter of Credit, all conditions precedent described in subsection 4.2B
shall be satisfied to the same extent as if the issuance of such Letter of
Credit were the making of a Loan and the date of issuance of such Letter of
Credit were a Funding Date.

Section 5.              BORROWER’S REPRESENTATIONS AND WARRANTIES

In order to induce
Lenders to enter into this Agreement and to make the Loans, to induce Issuing
Lenders to issue Letters of Credit and to induce Revolving Lenders or Synthetic
Letter of Credit Lenders, as the case may be, to purchase participations
therein, Borrower represents and warrants to each Lender:

5.1                               Organization, Powers,
Qualification, Good Standing, Business and Subsidiaries.

A.            Organization and Powers.  Each Loan Party is a corporation,
partnership, trust or limited liability company duly organized and in good
standing under the laws of its jurisdiction of organization as specified in Schedule 5.1
annexed hereto.  Each Loan Party has all
requisite power and authority to own and operate its properties, to carry on
its

93

business as now conducted and as proposed to be conducted
(except, in each case, where a lack of such corporate power and authority could
not be expected to have, individually or in the aggregate, a Material Adverse
Effect), to enter into the Loan Documents to which it is a party and to carry
out the transactions contemplated thereby.

B.            Qualification and Good Standing.  Each Loan Party is qualified to do business
and is in good standing to the extent required under the laws of its
jurisdiction of incorporation and is duly qualified to do business and is in
good standing as a foreign corporation to the extent required under the laws of
each jurisdiction where the nature of its business and operations requires such
qualification, except in jurisdictions where the failure to be so qualified or
in good standing has not had and could not reasonably be expected to result in
a Material Adverse Effect.

C.            Conduct of Business.  Parent and its Subsidiaries
are engaged only in the businesses permitted to be engaged in pursuant to
subsection 7.11.

D.            Subsidiaries.  All of the Subsidiaries of Parent and their
jurisdictions of organization as of the Restatement Date are identified in Schedule 5.1
annexed hereto, as said Schedule 5.1 may be supplemented from time
to time pursuant to the provisions of subsection 6.1(xv).  The Capital Stock of each of the Subsidiaries
of Parent identified in Schedule 5.1 annexed hereto (as so
supplemented) is a corporation, partnership, trust or limited liability company
duly authorized, validly issued, fully paid and nonassessable and none of such
Capital Stock constitutes Margin Stock. 
Each of the Subsidiaries of Parent identified in Schedule 5.1
annexed hereto (as so supplemented) is duly organized, validly existing and in
good standing under the laws of its respective jurisdiction of organization set
forth therein, has all requisite power and authority to own and operate its
properties and to carry on its business as now conducted and as proposed to be
conducted, and is qualified to do business and in good standing in every
jurisdiction where it is necessary to carry out its business and operations, in
each case except where failure to be so qualified or in good standing or a lack
of such power and authority has not had and could not reasonably be expected to
result in a Material Adverse Effect.  Schedule 5.1
annexed hereto (as so supplemented) correctly sets forth as of the Restatement
Date the identity of all Material Subsidiaries and the ownership interest of
Parent and each of its Subsidiaries in each of the Subsidiaries of Parent
identified therein.

5.2                               Authorization of
Borrowing, etc.

A.            Authorization.  The Transactions have been duly authorized by
all necessary action on the part of each Loan Party that is a party to any Loan
Document or other agreement or instrument relating to the Transactions.

B.            No Conflict.  The consummation of the Transactions will not
(i) violate any provision of any law or any governmental rule or
regulation applicable to Parent or any of its Subsidiaries, the Organizational
Documents of Parent or any of its Subsidiaries or any order, judgment or decree
of any court or other Government Authority binding on Parent or any of its
Subsidiaries, (ii) conflict with, result in a breach of or constitute
(with due notice or lapse of time or both) a default under any Contractual
Obligation of Parent or any of its Subsidiaries,

94

(iii) result in or require the creation or imposition
of any Lien upon any of the properties or assets of Parent or any of its
Subsidiaries (other than any Liens created under any of the Loan Documents in
favor of Administrative Agent on behalf of Lenders or as otherwise permitted
under this Agreement), or (iv) require any approval of stockholders or any
approval or consent of any Person under any Contractual Obligation of Parent or
any of its Subsidiaries, except for such approvals or consents which will be
obtained on or before the Restatement Date and except, in each case, to the extent
such violation, conflict, breach or failure to obtain such approval or consent could
not reasonably be expected to result in a Material Adverse Effect.

C.    Governmental
Consents.  The Transactions do
not and will not require any Governmental Authorization, except as has been
duly obtained and is in full force and effect unless the failure to obtain such
Governmental Authorization could not reasonably be expected to have a Material
Adverse Effect.

D.    Binding
Obligation.  The Amendment
Agreement and each of the other Loan Documents has been duly executed and
delivered by each Loan Party that is a party thereto and is the legally valid
and binding obligation of such Loan Party, enforceable against such Loan Party
in accordance with its respective terms, except as may be limited by
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or
similar laws relating to or limiting creditors’ rights generally or by
equitable principles (whether considered in a proceeding in equity or at law)
relating to enforceability.

5.3                               Financial Condition.

Borrower has heretofore
delivered to Lenders, (i) the audited consolidated balance sheet of Parent
and its Subsidiaries as at December 31, 2005 and the related consolidated
statements of operations, stockholders’ equity and cash flows of Parent and its
Subsidiaries for the Fiscal Year then ended and (ii) the unaudited
consolidated balance sheets of Borrower and its Subsidiaries as at March 31,
2006 and the related unaudited consolidated statements of operations and cash
flows of Parent and its Subsidiaries for the period then ended.  All such statements were prepared in
conformity with GAAP and fairly present, in all material respects, the
financial position (on a consolidated basis) of the entities described in such
financial statements as at the respective dates thereof and the results of
operations and cash flows (on a consolidated basis) of the entities described
therein for each of the periods then ended, subject, in the case of any such
unaudited financial statements, to changes resulting from audit and normal year-end
adjustments.  Neither Parent nor any of
its Subsidiaries has any Contingent Obligation, contingent liability or
liability for taxes, long-term lease or unusual forward or long-term commitment
that is not reflected in the foregoing financial statements or the notes
thereto or that is otherwise contemplated or permitted under this Agreement
and, as of any Funding Date subsequent to the Restatement Date, is not
reflected in the most recent financial statements delivered to Lenders pursuant
to subsection 6.1 or the notes thereto and that, in any such case, is material
in relation to the business, operations, properties, assets, condition
(financial or otherwise) or prospects of Parent or any of its Subsidiaries
taken as a whole.

 

95

 

5.4                               No Material Adverse Change.

Since December 31, 2005, no event or change has
occurred that has resulted in or evidences, either in any case or in the aggregate,
a Material Adverse Effect.

5.5                               Title to Properties;
Liens; Real Property; Intellectual Property.

A.            Title to Properties; Liens.  Except to the extent that the failure to do
so could not reasonably be expected to have a Material Adverse Effect, Parent
and its Subsidiaries have (i) good, sufficient and legal title to (in the
case of fee interests in real property), (ii) valid leasehold interests in
(in the case of leasehold interests in real or personal property), or
(iii) good title to (in the case of all other personal property), all of
their respective properties and assets reflected in the financial statements
referred to in subsection 5.3 or in the most recent financial statements
delivered pursuant to subsection 6.1, in each case except for assets
disposed of since the date of such financial statements in the ordinary course
of business or as otherwise permitted under subsection 7.7.  Except as permitted by this Agreement or any
other Loan Document, all such properties and assets are free and clear of
Liens.

B.    Real
Property.  As of the
Restatement Date, Schedule 5.5B annexed hereto contains a true,
accurate and complete list of (i) all fee interests in any Real Property
Assets and (ii) all leases, subleases or assignments of leases (together with
all amendments, modifications, supplements, renewals or extensions of any
thereof) affecting each Real Property Asset, regardless of whether a Loan Party
is the landlord or tenant (whether directly or as an assignee or successor in
interest) under such lease, sublease or assignment.  Except as specified in Schedule 5.5B
annexed hereto, each agreement listed in clause (ii) of the immediately
preceding sentence is in full force and effect and Borrower does not have
knowledge of any default that has occurred and is continuing thereunder, and
each such agreement constitutes the legally valid and binding obligation of
each applicable Loan Party, enforceable against such Loan Party in accordance
with its terms, except as enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or limiting creditors’
rights generally or by equitable principles.

C.    Intellectual
Property.  As of the Restatement Date, Parent and its
Subsidiaries own or have the right to use, all Intellectual Property used in
the conduct of their business, except where the failure to own or have such
right to use, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.  Each of Parent and its Subsidiaries has taken
all reasonable steps to protect its Intellectual Property and maintain all
registrations and pending applications thereto. 
Other than as set forth on Schedule 5.6, no claim has been
asserted and is pending by any Person challenging or questioning the use of any
such Intellectual Property or the validity or effectiveness of any such
Intellectual Property, except for such claims that in the aggregate could not
reasonably be expected to result in a Material Adverse Effect.  The use of such Intellectual Property by
Parent and its Subsidiaries and the anticipated use does not violate any
license or infringe on the rights of any Person, except for such claims and
infringements that, in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect.  All
federal and state and all foreign registrations of and applications for
Intellectual Property, and material unregistered Intellectual Property, that
are

 

96

owned or licensed by Borrower or
any of its Subsidiaries on the Restatement Date are described on Schedule 5.5C
annexed hereto.

5.6                               Litigation; Adverse Facts.

Other than as set forth
on Schedule 5.6, there are no Proceedings (whether or not purportedly on
behalf of Parent or any of its Subsidiaries) at law or in equity, or before or
by any court or other Government Authority (including any Environmental Claims)
that are pending or, to the knowledge of Parent, threatened against or
affecting Parent or any of its Subsidiaries or any property of Parent or any of
its Subsidiaries and that, individually or in the aggregate, could reasonably
be expected to result in a Material Adverse Effect.  Neither Parent nor any of its Subsidiaries (i) is
in violation of any applicable laws (including Environmental Laws) that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect, or (ii) is subject to or in default with respect
to any final judgments, writs, injunctions, decrees, rules or regulations of
any court or other Government Authority that, individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect.

5.7                               Payment of Taxes.

Except to the extent
permitted by subsection 6.3, all Tax returns and reports of the Loan
Parties required to be filed by any of them have been timely filed, and all
Taxes shown on such tax returns to be due and payable and all Taxes,
assessments, fees and other governmental charges upon the Loan Parties and upon
their respective properties, assets, income, businesses and franchises that are
due and payable have been paid when due except for any such Tax, assessment,
fee or charge that is being actively contested by such Loan Party in good faith
and by appropriate proceedings; provided that such reserves or other
appropriate provisions, if any, as shall be required in accordance with GAAP
shall have been made or provided therefor. 
Except as set forth on Schedule 5.7, none of Parent or any
of its Subsidiaries has received written notice from any taxing authority of
any assessment (or proposed assessment) against any of the Loan Parties that is
not being actively contested by such Loan Party in good faith and by
appropriate proceedings; provided that such reserves or other appropriate
provisions, if any, as shall be required in accordance with GAAP shall have
been made or provided therefor.

5.8                               Performance of Agreements;
Material Contracts.

A.            No Loan Party is in default in the
performance, observance or fulfillment of any of the obligations, covenants or
conditions contained in any of its Contractual Obligations, and no condition
exists that, with the giving of notice or the lapse of time or both, would
constitute such a default, except where (i) such default or defaults are being
contested in good faith by appropriate proceedings or (ii) the consequences,
direct or indirect, of such default or defaults, if any, could not reasonably
be expected to result in a Material Adverse Effect.

B.    Schedule 5.8 contains a true,
correct and complete list of all the Material Contracts in effect on the
Restatement Date.  Except as described on
Schedule 5.8, all such Material Contracts are in full force and
effect and no material defaults currently exist thereunder.

 

97

5.9                               Governmental Regulation.

No Loan Party is subject
to regulation under the Federal Power Act, the Interstate Commerce Act or the
Investment Company Act of 1940 or under any other federal or state statute or
regulation which may limit its ability to incur Indebtedness or which may
otherwise render all or any portion of the Obligations unenforceable.

5.10                        Securities Activities.

A.            No Loan Party is engaged
principally, or as one of its important activities, in the business of
extending credit for the purpose of purchasing or carrying any Margin Stock.

B.            Following application of the
proceeds of each Loan, not more than 25% of the value of the assets (either of
Borrower only or of the Loan Parties on a consolidated basis) subject to the
provisions of subsection 7.2 or 7.7 or subject to any restriction
contained in any agreement or instrument, between Borrower and any Lender or
any Affiliate of any Lender, relating to Indebtedness and within the scope of
subsection 8.2, will be Margin Stock.

5.11                        Employee Benefit Plans.

A.            Each of the Loan Parties and each
of their respective ERISA Affiliates are in compliance in all material respects
with all applicable provisions and requirements of ERISA and the regulations
and published interpretations thereunder with respect to each Employee Benefit
Plan, and have performed all their obligations under each Employee Benefit
Plan.  Each Employee Benefit Plan that is
intended to qualify under Section 401(a) of the Internal Revenue Code has
received a favorable determination letter from the Internal Revenue Service
that it is so qualified and since the date of each most recent letter, there
has been no event, condition or circumstance that has adversely affected or is
likely to adversely affect such qualified status.

B.    No ERISA Event has occurred or is
reasonably expected to occur.

C.    Except to the extent
required under Section 4980B of the Internal Revenue Code or other applicable law or except as set forth in Schedule 5.11
annexed hereto, no Employee Benefit Plan provides health or welfare benefits
(through the purchase of insurance or otherwise) for any retired or former
employee of any Loan Party or any of their respective ERISA Affiliates.

D.    As of the most recent valuation date for any Pension Plan, and excluding
for purposes of such computation all Pension Plans which have no unfunded
benefit liabilities (as defined in Section 4001(a)(18) of ERISA), the sum of:

(i)            the unfunded benefit liabilities (as
defined in Section 4001(a)(18) of ERISA) individually or in the aggregate for
all Pension Plans to which any Loan Party has ever contributed; and

 

98

 

(ii)           the potential liability that the Loan
Party could reasonably be expected to incur as the result of the unfunded
benefit liabilities (as defined in Section 4001(a)(18) of ERISA), individually
or in the aggregate, for all Pension Plans to which no Loan Party has ever
contributed (assuming amortization of such unfunded benefit liabilities over
ten years);

 

does
not exceed $2,000,000.

E.     As of the most recent
valuation date for each Multiemployer Plan for which the actuarial report is
available, the potential liability of the Loan Parties and their respective
ERISA Affiliates for a complete withdrawal from such Multiemployer Plan (within
the meaning of Section 4203 of ERISA), when aggregated with such potential
liability for a complete withdrawal from all Multiemployer Plans, based on
information available pursuant to Section 4221(e) of ERISA, does not
exceed $2,000,000.

5.12                        Certain Fees.

No broker’s or finder’s
fee or commission will be payable with respect to this Agreement or any of the
transactions contemplated hereby and Borrower hereby indemnifies Lenders
against, and agrees that it will hold Lenders harmless from, any claim, demand
or liability for any such broker’s or finder’s fees alleged to have been
incurred in connection herewith or therewith and any expenses (including
reasonable fees, expenses and disbursements of counsel) arising in connection
with any such claim, demand or liability.

5.13                        Environmental Protection.

Except as set forth in Schedule 5.13
annexed hereto:

(i)            none of the Loan Parties nor any of
their respective current Facilities or operations nor, to Borrower’s knowledge,
any of the Loan Parties’ respective former Facilities or operations, are
subject to any outstanding written order, consent decree or settlement
agreement with any Person relating to (a) any Environmental Law,
(b) any Environmental Claim, or (c) any Hazardous Materials Activity
that, in each case, individually or in the aggregate, could reasonably be
expected to result in a Material Adverse Effect;

(ii)           none of the Loan Parties has
received any letter or request for information under Section 104 of
the Comprehensive Environmental Response, Compensation, and Liability Act (42
U.S.C. § 9604) or any comparable state law;

(iii)          there are and, to Borrower’s
knowledge, have been no conditions, occurrences, or Hazardous Materials
Activities that could reasonably be expected to form the basis of an
Environmental Claim against Parent or any of its Subsidiaries that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect;

 

99

 

(iv)          none of the Loan Parties nor, to
Borrower’s knowledge, any predecessor of any of the Loan Parties has filed any
notice under any Environmental Law indicating past or present treatment of
Hazardous Materials at any Facility, and none of the Loan Parties’ operations
involves the generation, transportation, treatment, storage or disposal of
hazardous waste, as defined under 40 C.F.R. Parts 260-270 or any
state equivalent;

(v)           compliance with all current or
reasonably foreseeable future requirements pursuant to or under Environmental
Laws would not, individually or in the aggregate, be reasonably expected to
result in a Material Adverse Effect.

5.14                        Employee Matters.

There is no strike or
work stoppage in existence or threatened involving any of the Loan Parties that
could reasonably be expected to result in a Material Adverse Effect.

5.15                        Solvency.

Each Loan Party is and,
upon the incurrence of any Obligations by such Loan Party on any date on which
this representation is made, will be, Solvent.

5.16                        Matters Relating to
Collateral.

A.            Collateral Documents; Liens.

(i)            The Collateral Documents are
effective to create in favor of Administrative Agent for the benefit of the
Lenders, a legal, valid and enforceable security interest in the Collateral and
the proceeds thereof and (a) with respect to all Pledged Collateral
previously delivered to and in possession of Administrative Agent, the Liens
created under the Collateral Documents constitute, or in the case of Pledged Collateral
to be delivered to Administrative Agent on or after the Restatement Date, the
Liens created under the Collateral Documents will constitute, fully perfected
First Priority Liens on, and security interests in, all right, title and
interest of the Loan Parties in such Pledged Collateral, and (b) together with
the financing statements previously filed, the Liens created under the
Collateral Documents constitute fully perfected First Priority Liens on, and
security interests in, all right, title and interest of the Loan Parties in all
such Collateral as to which a security interest may be perfected by such a
filing (other than Intellectual Property).

(ii)           The short-form intellectual property
security agreements currently on file with the PTO, together with the financing
statements previously filed, constitute fully perfected First Priority Liens
on, and security interests in, all right, title and interest of the Loan
Parties in the IP Collateral in which a security interest may be perfected by
filing in the United States and its territories and possessions (it being
understood that subsequent recordings with the PTO may be necessary to perfect
a Lien on IP Collateral acquired by the Loan Parties on or after the
Restatement Date).

 

100

(iii)          The Mortgages create in favor of
Administrative Agent for the benefit of the Lenders, legal, valid and
enforceable Liens on all of the Loan Parties’ right, title and interest in and
to the Real Property Assets thereunder and the proceeds thereof, and when the
modifications referred to in subsection 5.16B are recorded, the Mortgages will
constitute fully perfected First Priority Liens on, and security interests in,
all right, title and interest of the Loan Parties in the Real Property Assets
thereunder and the proceeds thereof to secure the Obligations.

B.    Governmental
Authorizations.  No action, consent
or approval of, registration or filing with or any other action by any
Government Authority is or will be required in connection with the transactions
contemplated hereby, except for (a) the filing of UCC financing statements
and filings with the PTO, (b) the recordation of modifications to the
Mortgages reflecting, among other things, the making of the Supplemental Term
Loans, and (c) such as have been made or obtained and are in full force
and effect.

C.    Absence of
Third-Party Filings.  Except such as may
have been filed in favor of Administrative Agent as contemplated by
subsection 5.16A and to evidence permitted lease obligations and other
Liens permitted pursuant to subsection 7.2, (i) no effective UCC
financing statement, fixture filing or other instrument similar in effect
covering all or any part of the Collateral is on file in any filing or
recording office and (ii) no effective filing covering all or any part of
the IP Collateral is on file in the PTO.

D.    Margin
Regulations.  The pledge of the
Pledged Collateral pursuant to the Collateral Documents does not violate
Regulation T, U or X of the Board of Governors of the Federal Reserve
System.

E.     Information
Regarding Collateral.  All written
information supplied to Administrative Agent by or on behalf of any Loan Party
with respect to any of the Collateral (in each case taken as a whole with
respect to any particular Collateral) is accurate and complete in all material
respects.

5.17                        Disclosure.

No material
representation or warranty of the Loan Parties contained in any Loan Document
or in any other document, certificate or written statement furnished to Lenders
by or on behalf of any of the Loan Parties for use in connection with the
transactions contemplated by this Agreement contains any untrue statement of a
material fact or omits to state a material fact (known to Borrower, in the case
of any document not furnished by it) necessary in order to make the statements
contained herein or therein not misleading in light of the circumstances in
which the same were made.  Any
projections, including forecasts, budgets, forward-looking statements and pro forma financial information (the “Projections”) contained in such materials
are based upon good faith estimates and assumptions believed by Borrower to be
reasonable at the time made, it being recognized by Lenders that such
Projections are not to be viewed as facts and that actual results during the
period or periods covered by any such Projections may differ from the projected
results.  There are no facts known (or
which should upon the reasonable exercise of diligence be known) to Borrower
(other than matters of a general economic nature) that,

 

101

individually or in
the aggregate, could reasonably be expected to result in a Material Adverse
Effect and that have not been disclosed herein or in such other documents,
certificates and statements furnished to Lenders for use in connection with the
transactions contemplated hereby.

5.18                        Subordinated Indebtedness.

The Obligations
constitute senior indebtedness that is entitled to the benefits of the
subordination provisions of all Subordinated Indebtedness of Parent and its
Subsidiaries (including without limitation, the Senior Subordinated Notes and
any Permitted Additional Subordinated Financing).

5.19                        Leasehold Property.

As of the Restatement
Date, neither Borrower nor any of the Subsidiary Guarantors has any Leasehold
Property that is a Material Real Property.

Section 6.              BORROWER’S AFFIRMATIVE COVENANTS

Borrower covenants and
agrees that, so long as any of the Commitments hereunder shall remain in effect
and until payment in full of all of the Loans and other Obligations and the
cancellation or expiration of all Letters of Credit, unless Requisite Lenders
shall otherwise give prior written consent, Borrower shall perform, and shall
cause each other Loan Party to perform, all covenants in this Section 6.

6.1                               Financial Statements and
Other Reports.

Borrower will maintain,
and cause Parent and the Subsidiaries to maintain, a system of accounting
established and administered in accordance with sound business practices to
permit preparation of financial statements in conformity with GAAP.  Borrower will deliver to Administrative Agent
for distribution to Lenders:

(i)            Events of Default, etc.:  Within 3 Business Days of any Officer of
Borrower obtaining knowledge (a) of any condition or event that
constitutes an Event of Default or Potential Event of Default, or becoming
aware that any Lender has given any notice (other than to Administrative Agent)
or taken any other action with respect to a claimed Event of Default or Potential
Event of Default, (b) that any Person has given any notice to any of the
Loan Parties or taken any other action with respect to a claimed default or
event or condition of the type referred to in subsection 8.2, (c) of
any condition or event that is required to be disclosed in a current report
filed by any Loan Party with the Securities and Exchange Commission on Form 8-K
or would be required if such Loan Party was required to file such reports under
the Exchange Act, or (d) of the occurrence of any event or change that has
caused or evidences, either in any case or in the aggregate, a Material Adverse
Effect, an Officer’s Certificate specifying the nature and period of existence
of such condition, event or change, or specifying the notice given or action
taken by any such Person and the nature of such claimed Event of Default,

 

102

 

Potential Event of
Default, default, event or condition, and what action such Loan Party has
taken, is taking and proposes to take with respect thereto;

(ii)           Quarterly Financials:  as soon as available and in any event within
the earlier of (a) 45 days after the end of each of the first three Fiscal
Quarters of each Fiscal Year and (b) if Borrower is a public reporting company
at such time, such earlier date as the Securities and Exchange Commission
requires the filing of such information (or, if Borrower is required to file
such information on a Form 10-Q with the Securities and  Exchange Commission, promptly following such
filing), (a) the consolidated balance sheet of Parent and its Subsidiaries
as at the end of such Fiscal Quarter and the related consolidated statements of
operations and cash flows of Parent and
its Subsidiaries for such Fiscal Quarter and for the period from the beginning
of the then current Fiscal Year to the end of such Fiscal Quarter, setting
forth in each case in comparative form the corresponding figures for the
corresponding periods of the previous Fiscal Year and the corresponding figures
from the Financial Plan for the current Fiscal Year, all in reasonable detail
and certified by the chief financial officer of Parent that they fairly present, in all material
respects, the financial condition of Parent and
its Subsidiaries as at the dates indicated and the results of their operations
and their cash flows for the periods indicated, subject to changes resulting
from audit and normal year-end adjustments, and (b) a narrative report
describing the operations of Parent and
its Subsidiaries in the form prepared for presentation to senior management for
such Fiscal Quarter and for the period from the beginning of the then current
Fiscal Year to the end of such Fiscal Quarter (it being understood that the
foregoing requirements may be satisfied by delivery of Borrower’s report to the
Securities and Exchange Commission on Form 10-Q);

(iii)          Year-End Financials:  as soon as available and in any event within
the earlier of (a) 90 days after the end of each Fiscal Year or (b) if
Borrower is a public reporting company at such time, such earlier date as the
Securities and Exchange Commission requires the filing of such information (or,
if Borrower is required to file such information on a Form 10-K with the
Securities and Exchange Commission, promptly following such filing),
(a) the consolidated balance sheet of Parent and its Subsidiaries as at
the end of such Fiscal Year and the related consolidated statements of
operations, stockholders’ equity and cash flows of Parent and its Subsidiaries
for such Fiscal Year, setting forth in each case in comparative form the
corresponding figures for the previous Fiscal Year and the corresponding
figures from the Financial Plan for the Fiscal Year covered by such financial
statements, all in reasonable detail and certified by the chief financial
officer of Parent that they fairly present, in all material respects, the
financial condition of Parent and its Subsidiaries as at the dates indicated
and the results of their operations and their cash flows for the periods
indicated, (b) a narrative report describing the operations of Parent and
its Subsidiaries in the form prepared for presentation to senior management for
such Fiscal Year (it being understood that the foregoing requirements may be
satisfied by delivery of Borrower’s report to the Securities and Exchange
Commission on Form 10-K), and (c) in the case of such consolidated
financial statements, a report thereon of Ernst & Young LLP or other independent certified public
accountants of recognized national standing selected by

 

103

Parent and reasonably
satisfactory to Administrative Agent, which report shall be unqualified, shall
express no doubts about the ability of Parent and its Subsidiaries to continue
as a going concern, and shall state that such consolidated financial statements
fairly present, in all material respects, the consolidated financial position
of Parent and its Subsidiaries as at the dates indicated and the results of
their operations and their cash flows for the periods indicated in conformity
with GAAP applied on a basis consistent with prior years (except as otherwise
disclosed in such financial statements) and that the examination by such
accountants in connection with such consolidated financial statements has been
made in accordance with generally accepted auditing standards;

(iv)          Pricing and Compliance Certificates:  together with each delivery of financial
statements pursuant to subdivisions (ii) and (iii) above, a Compliance
Certificate signed by a financial Officer (a) stating that the signers
have reviewed the terms of this Agreement and have made, or caused to be made
under their supervision, a review in reasonable detail of the transactions and
condition of Parent and its Subsidiaries during the accounting period covered
by such financial statements and that such review has not disclosed the
existence during or at the end of such accounting period, and that the signers
do not have knowledge of the existence as at the date of such Compliance
Certificate, of any condition or event that constitutes an Event of Default or
Potential Event of Default, or, if any such condition or event existed or
exists, specifying the nature and period of existence thereof and what action
Borrower has taken, is taking and proposes to take with respect thereto, and
(b) demonstrating in reasonable detail compliance during and at the end of
the applicable accounting periods with the restrictions contained in
Section 7, in each case to the extent compliance with such restrictions is
required to be tested at the end of the applicable accounting period; in
addition, on or before the 45th day following the end of each Fiscal
Quarter, a Pricing Certificate demonstrating in reasonable detail the
calculation of the Leverage Ratio as of the end of the four-Fiscal Quarter
period then ended;

(v)           Reconciliation Statements:  if, as a result of any change in accounting
principles and policies from those used in the preparation of the audited
financial statements referred to in subsection 5.3, the consolidated
financial statements of Parent and its Subsidiaries delivered pursuant to
subdivisions (ii), (iii) or (xii) of this subsection 6.1 will differ
in any material respect from the consolidated financial statements that would
have been delivered pursuant to such subdivisions had no such change in
accounting principles and policies been made, then (a) together with the
first delivery of financial statements pursuant to subdivision (ii), (iii)
or (xii) of this subsection 6.1 following such change, consolidated
financial statements of Parent and its Subsidiaries for (y) the current
Fiscal Year to the effective date of such change and (z) two full Fiscal Years
immediately preceding the Fiscal Year in which such change is made, in each
case prepared on a pro forma
basis as if such change had been in effect during such periods, and
(b) together with each delivery of financial statements pursuant to
subdivision (ii), (iii) or (xii) of this subsection 6.1 following
such change, if required pursuant to subsection 1.2, a written statement
of the chief accounting officer or chief financial officer of Borrower setting
forth the differences (including any differences that

 

104

would affect any
calculations relating to the financial covenants set forth in
subsection 7.6) which would have resulted if such financial statements had
been prepared without giving effect to such change;

(vi)          Accountants’ Certification:  together with each delivery of consolidated
financial statements pursuant to subdivision (iii) above, a written
statement by the independent certified public accountants giving the report
thereon (a) stating that their audit examination has included a review of
the terms of this Agreement and the other Loan Documents as they relate to
accounting matters, (b) stating whether, in connection with their audit
examination, any condition or event that constitutes an Event of Default or
Potential Event of Default has come to their attention and, if such a condition
or event has come to their attention, specifying the nature and period of
existence thereof; provided that such accountants shall not be liable by
reason of any failure to obtain knowledge of any such Event of Default or
Potential Event of Default that would not be disclosed in the course of their
audit examination, and (c) stating that based on their audit examination
nothing has come to their attention that causes them to believe either or both
that the information contained in the certificates delivered therewith pursuant
to subdivision (iv) above is not correct or that the matters set forth in
the Compliance Certificates delivered therewith pursuant to clause (b) of
subdivision (iv) above for the applicable Fiscal Year are not stated in
accordance with the terms of this Agreement;

(vii)         Accountants’ Reports:  promptly upon receipt thereof (unless
restricted by applicable professional standards), copies of all material
reports submitted to Parent or Borrower by independent certified public
accountants in connection with each annual, interim or special audit of the
financial statements of Parent and its Subsidiaries made by such accountants,
including any comment letter submitted by such accountants to management in
connection with their annual audit;

(viii)        SEC Filings and Press Releases:  promptly upon their becoming available,
copies of (a) all financial statements, reports, notices and proxy
statements sent or made available generally by Parent and/or Borrower to its
security holders or by any of their respective Subsidiaries to its security
holders other than Parent and/or Borrower or another Subsidiary of Parent
and/or Borrower, (b) all regular and periodic reports and all registration
statements (other than on Form S-8 or a similar form) and prospectuses,
if any, filed by Parent and/or Borrower or any of their respective Subsidiaries
with any securities exchange or with the Securities and Exchange Commission or
any governmental or private regulatory authority, and (c) all press
releases and other statements made available generally by Parent and/or
Borrower or any of their respective Subsidiaries to the public concerning
material developments in the business of Parent and/or Borrower or any of their
respective Subsidiaries that are required to be disclosed in a current report
filed by Parent and/or Borrower or any of their respective Subsidiaries with
the Securities and Exchange Commission on Form 8-K or would be required to
be so disclosed if Parent and/or Borrower or such Subsidiary were required to
file such reports under the Exchange Act;

 

105

(ix)           Litigation or Other Proceedings:  (a) promptly upon any Officer of any
Loan Party obtaining knowledge of (1) the institution of, or non-frivolous
threat of, any Proceeding against or affecting any Loan Party or any property
of any Loan Party not previously disclosed in writing by any Loan Party to
Lenders or (2) any material development in any Proceeding that, in any
case:

(x)            if adversely determined, has a
reasonable possibility of giving rise to a Material Adverse Effect; or

(y)           seeks to enjoin or otherwise prevent
the consummation of, or to recover any damages or obtain relief as a result of,
the transactions contemplated hereby;

written notice thereof together with such other information as may be
reasonably available to Borrower to enable Lenders and their counsel to
evaluate such matters; and (b) promptly upon request by Administrative
Agent, a schedule of all Proceedings delivered by Borrower to its independent
certified public accountants in connection with the report prepared by them on
the consolidated financial statements of Parent and its Subsidiaries for each
Fiscal Year, and promptly after request by Administrative Agent such other
information as may be reasonably requested by Administrative Agent to enable
Administrative Agent and its counsel to evaluate any of such Proceedings;

(x)            ERISA Events:  promptly upon becoming aware of the
occurrence of or forthcoming occurrence of any ERISA Event, a written notice specifying
the nature thereof, what action Parent, any of its Subsidiaries or any of their
respective ERISA Affiliates has taken, is taking or proposes to take with
respect thereto and, when known, any action taken or threatened by the Internal
Revenue Service, the Department of Labor or the PBGC with respect thereto;

(xi)           ERISA Notices:  with reasonable promptness, copies of
(a) all notices received by Parent, any of its Subsidiaries or any of
their respective ERISA Affiliates from a Multiemployer Plan sponsor concerning
an ERISA Event and (b) copies of such other documents or governmental reports
or filings relating to any Employee Benefit Plan as Administrative Agent shall
reasonably request;

(xii)          Financial Plans:  as soon as practicable and in any event no
later than 90 days after the beginning of each Fiscal Year, a consolidated
plan and financial forecast for such Fiscal Year (the “Financial
Plan” for such Fiscal Year) prepared in reasonable detail by an
Officer of Borrower and in form and substance substantially consistent with the
financial projections previously provided to Lenders pursuant to
subsection 4.1, including (a) a forecasted consolidated balance
sheets and forecasted consolidated statements of operations and cash flows of
Parent and its Subsidiaries for such Fiscal Year, together with a pro forma Compliance Certificate for
such Fiscal Year and an explanation of the assumptions on which such forecasts
are based and (b) such other information and projections as Administrative
Agent may reasonably request;

 

106

(xiii)         Insurance:  as soon as practicable after any material
change in insurance coverage maintained by the Loan Parties notice thereof to
Administrative Agent specifying the changes and reasons therefor;

(xiv)        Governing Body:  with reasonable promptness, written notice of
any change in the Governing Body of Parent or Borrower;

(xv)         New Subsidiaries:  promptly upon any Person becoming a
Subsidiary of Parent or Borrower, a written notice setting forth with respect
to such Person (a) the date on which such Person became such Subsidiary
and (b) all of the data required to be set forth in Schedule 5.1
annexed hereto with respect to all Subsidiaries of the Loan Parties (it being
understood that such written notice shall be deemed to supplement Schedule 5.1
annexed hereto for all purposes of this Agreement);

(xvi)        Subordinated Debt Notices:  promptly upon receipt by Parent or any of its
Subsidiaries of any notice with respect to any Subordinated Indebtedness, and
promptly upon the giving of notice by Parent or any of its Subsidiaries with
respect to any Subordinated Indebtedness, in each case relating to any default
or payment or prepayment of principal or premium, if any, redemption, purchase,
retirement, defeasance (including in-substance or legal defeasance),
sinking fund or similar payment with respect to such Subordinated Indebtedness,
a copy of such notice; and

(xvii)       Other Information:  with reasonable promptness, such other
information and data with respect to any Loan Party as from time to time may be
reasonably requested by any Lender.

6.2                               Corporate Existence, etc.

Except as permitted under
subsection 7.7, Borrower will, and will cause each of the other Loan
Parties to, at all times preserve and keep in full force and effect its
existence in the jurisdiction of organization specified on Schedule 5.1
and all rights and franchises material to its business; provided, however,
that no Loan Party shall be required to preserve any such right or franchise if
the Governing Body of such Loan Party shall determine that the preservation
thereof is no longer desirable in the conduct of the business of such Loan
Party and that the loss thereof could not reasonably be expected to have a
Material Adverse Effect.

6.3                               Payment of Taxes and
Claims; Tax Consolidation.

A.            Borrower will, and will cause each
of the other Loan Parties to, pay all taxes, assessments and other governmental
charges imposed upon it or any of its properties or assets or in respect of any
of its income, businesses or franchises before any penalty accrues thereon, and
all claims (including claims for labor, services, materials and supplies) for
sums that have become due and payable and that by law have or may become a Lien
upon any of its properties or assets, prior to the time when any penalty or
fine shall be incurred with respect thereto; provided that no such tax,
assessment, charge or claim need be paid if it is being contested in good faith
by appropriate proceedings, so long as (i) such reserve or other

 

107

appropriate provision, if any, as shall be required in
conformity with GAAP shall have been made therefor and (ii) in the case of
a charge, tax, assessment or claim which has or may become a Lien against any
of the Collateral, such proceedings conclusively operate to stay the sale of
any portion of the Collateral to satisfy such charge or claim.

B.                                    Borrower will not, nor
will it permit any of the other Loan Parties to, file or consent to the filing
of any consolidated income tax return with any Person (other than Parent or any
of its Subsidiaries).

6.4                               Maintenance of Properties;
Insurance; Application of Net Insurance/ Condemnation Proceeds.

A.                                    Maintenance of Properties.  Except to the extent that the failure to do
so could not reasonably be expected to have a Material Adverse Effect, Borrower
will, and will cause each of the other Loan Parties to, (i) with respect to all
material properties used or useful in the business of the Loan Parties,
maintain or cause to be maintained such material properties in good repair,
working order and condition, ordinary wear and tear excepted, and from time to
time make or cause to be made all appropriate repairs, renewals and
replacements thereof and (ii) with respect to Intellectual Property,
maintain such Intellectual Property as valid and enforceable and from time to
time make or cause to be made all appropriate filings thereof.

B.                            Insurance. 
Borrower will maintain or cause to be maintained, with financially sound
and reputable insurers, such public liability insurance, third party property
damage insurance, business interruption insurance and casualty insurance with
respect to liabilities, losses or damage in respect of the assets, properties
and businesses of the Loan Parties as may customarily be carried or maintained
under similar circumstances by corporations of established reputation engaged
in similar businesses, in each case in such amounts (giving effect to
self-insurance), with such deductibles, covering such risks and otherwise on
such terms and conditions as shall be customary for corporations similarly
situated in the industry.  Without
limiting the generality of the foregoing, Borrower will maintain or cause to be
maintained (i) flood insurance with respect to each Flood Hazard Property
that is located in a community that participates in the National Flood
Insurance Program, in each case in compliance with any applicable regulations
of the Board of Governors of the Federal Reserve System, and
(ii) replacement value casualty insurance on the Collateral under such
policies of insurance, with such insurance companies, in such amounts, with
such deductibles, and covering such risks as are at all times satisfactory to
Administrative Agent in its commercially reasonable judgment. Each such policy
of insurance shall (a) name Administrative Agent for the benefit of
Lenders as an additional insured thereunder as its interests may appear and
(b) in the case of each business interruption and casualty insurance
policy, (x) contain a loss payable clause or endorsement, satisfactory in
form and substance to Administrative Agent, that names Administrative Agent for
the benefit of Lenders as the loss payee thereunder for any covered loss in excess
of $5,000,000 and (y) provides for at least 30 days prior written
notice to Administrative Agent of any modification or cancellation of such
policy.

 

108

 

C.                            Application of Net Insurance/Condemnation
Proceeds.

(i)                                     Business Interruption Insurance. 
Upon receipt by any Loan Party of any business interruption insurance
proceeds constituting Net Insurance/Condemnation Proceeds, (a) so long as
no Event of Default or Potential Event of Default shall have occurred and be
continuing, such Loan Party may retain and apply such Net
Insurance/Condemnation Proceeds for working capital purposes, and (b) if
an Event of Default or Potential Event of Default shall have occurred and be
continuing, Borrower shall apply an amount equal to such Net
Insurance/Condemnation Proceeds to prepay the Loans as provided in
subsection 2.4B;

(ii)                                  Net Insurance/Condemnation Proceeds
Received by Borrower.  Upon receipt by any Loan Party of any Net
Insurance/Condemnation Proceeds (other than from business interruption
insurance) in excess of $2,500,000, (a) so long as no Event of Default or
Potential Event of Default shall have occurred and be continuing, Borrower
shall, or shall cause any other Loan Party to, promptly and diligently apply such
Net Insurance/Condemnation Proceeds to pay or reimburse the costs of repairing,
restoring or replacing the assets in respect of which such Net
Insurance/Condemnation Proceeds were received or, to the extent not so applied,
to prepay the Loans as provided in subsection 2.4B, and (b) if an
Event of Default or Potential Event of Default shall have occurred and be
continuing, Borrower shall apply an amount equal to 100% of such Net
Insurance/Condemnation Proceeds to prepay the Loans as provided in subsection 2.4B.

(iii)                               Net Insurance/Condemnation Proceeds
Received by Administrative Agent.  Upon receipt
by Administrative Agent of any Net Insurance/Condemnation Proceeds as loss
payee, (a) if and to the extent Borrower would have been required to apply
such Net Insurance/Condemnation Proceeds (if it had received them directly) to
prepay the Loans, Administrative Agent shall, and Borrower hereby authorizes
Administrative Agent to, apply such Net Insurance/Condemnation Proceeds to
prepay the Loans as provided in subsection 2.4B, and (b) to the
extent the foregoing clause (a) does not apply and (1) the aggregate
amount of such Net Insurance/Condemnation Proceeds received (and reasonably
expected to be received) by Administrative Agent in respect of any covered loss
does not exceed $10,000,000,
Administrative Agent shall deliver such Net Insurance/Condemnation Proceeds to
Borrower, and Borrower shall, or shall cause any other Loan Party to, as soon
as reasonably practicable, apply such Net Insurance/Condemnation Proceeds to the
costs of repairing, restoring, or replacing the assets in respect of which such
Net Insurance/Condemnation Proceeds were received, and (2) if the
aggregate amount of Net Insurance/Condemnation Proceeds received (and
reasonably expected to be received) by Administrative Agent in respect of any
covered loss exceeds $10,000,000,
Administrative Agent shall hold such Net Insurance/Condemnation Proceeds
pursuant to the terms of the Security Agreement and, so long as Borrower or any
other Loan Party proceeds diligently to repair, restore or replace the assets
of such Loan Party in respect of which such Net Insurance/Condemnation Proceeds
were received, Administrative Agent shall from time to time disburse to such
Loan Party from the Collateral Account, to the extent of any such Net
Insurance/Condemnation Proceeds remaining therein in respect of the applicable

 

109

covered loss, amounts
necessary to pay the cost of such repair, restoration or replacement after the
receipt by Administrative Agent of invoices or other documentation reasonably
satisfactory to Administrative Agent relating to the amount of costs so
incurred and the work performed (including, if required by Administrative
Agent, lien releases and architects’ certificates); provided,  however,
that if at any time Administrative Agent reasonably determines that such
repair, restoration or replacement cannot be completed with the Net
Insurance/Condemnation Proceeds then held by Administrative Agent for such purpose,
together with funds otherwise available to Borrower for such purpose, or that
such repair, restoration or replacement cannot be completed within 365 days after the receipt by
Administrative Agent of such Net Insurance/Condemnation Proceeds, Administrative
Agent shall, and Borrower hereby authorizes Administrative Agent to, apply such
Net Insurance/ Condemnation Proceeds to prepay the Loans as provided in
subsection 2.4B.

6.5                               Inspection Rights; Lender
Meeting.

A.            Inspection Rights.  Borrower shall, and shall cause each of the
other Loan Parties to, permit any authorized representatives designated by any
Lender to visit and inspect any of the properties of any Loan Party, to
inspect, copy and take extracts from its and their financial and accounting
records, and to discuss its and their affairs, finances and accounts with its
and their officers and independent public accountants (provided that
Parent or its Subsidiaries may, if it so chooses, be present at or participate
in any such discussion), all upon reasonable notice and, except during the
continuance of an Event of Default, no more than once per year.

B.            Lender Meeting.  During the continuance of an Event of
Default, Borrower will, upon the request of Administrative Agent or Requisite
Lenders, participate in a meeting of Administrative Agent and Lenders to be
held at Borrower’s principal offices (or at such other location as may be
agreed to by Borrower and Administrative Agent) at such time as may be agreed
to by Borrower and Administrative Agent.

6.6                               Compliance with Laws, etc.

Borrower shall comply,
and shall cause each of the other Loan Parties to comply, with the requirements
of all applicable laws, rules, regulations and orders of any Government
Authority (including all Environmental Laws), noncompliance with which could
reasonably be expected to result in, individually or in the aggregate, a
Material Adverse Effect.

6.7                               Environmental Matters.

A.            Environmental Disclosure.  Borrower will deliver to Administrative Agent
and Lenders:

(i)            Environmental Audits and Reports.  As soon as practicable following receipt
thereof, copies of all environmental audits, investigations, analyses and
reports of any kind or character, whether prepared by personnel of Parent or
any of its Subsidiaries or by independent consultants, governmental authorities
or any other Persons, with

 

110

respect to significant
environmental matters at any Facility that, individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect or with
respect to any Environmental Claims that, individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect;

(ii)           Notice of Certain Releases,
Remedial Actions, Etc.  Promptly upon
the occurrence thereof, written notice describing in reasonable detail
(a) any Release required to be reported to any federal, state or local
governmental or regulatory agency under any applicable Environmental Laws,
(b) any remedial action taken by any Loan Party or any other Person in
response to (1) any Hazardous Materials Activities the existence of which
could reasonably be expected to result in one or more Environmental Claims
having, individually or in the aggregate, a Material Adverse Effect, or
(2) any Environmental Claims that, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect.

(iii)          Written Communications Regarding
Environmental Claims, Releases, Etc. 
As soon as practicable following the sending or receipt thereof by any
Loan Party, a copy of any and all written communications with respect to
(a) any Environmental Claims that, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect, (b) any
Release required to be reported to any federal, state or local governmental or
regulatory agency, and (c) any request for information from any
governmental agency that suggests such agency is investigating whether such
Loan Party may be potentially responsible for any Hazardous Materials Activity
that, individually or in the aggregate, could reasonably be expected to result
in a Material Adverse Effect.

(iv)          Notice of Certain Proposed Actions
Having Environmental Impact.  Prompt
written notice describing in reasonable detail (a) any proposed
acquisition of stock, assets, or property by any Loan Party that could
reasonably be expected to (1) expose any Loan Party to, or result in,
Environmental Claims that could reasonably be expected to result in, individually
or in the aggregate, a Material Adverse Effect or (2) affect the ability
of any Loan Party to maintain in full force and effect all material
Governmental Authorizations required under any Environmental Laws for its
operations and (b) any proposed action to be taken by any Loan Party to
commence manufacturing or other industrial operations or to modify current
operations in a manner that could reasonably be expected to subject the Loan
Parties to any material additional obligations or requirements under any
Environmental Laws that could reasonably be expected to result in, individually
or in the aggregate, a Material Adverse Effect.

B.    Borrower’s
Actions Regarding Hazardous Materials Activities, Environmental Claims and
Violations of Environmental Laws.

(i)            Remedial Actions Relating to
Hazardous Materials Activities. 
Borrower shall, in compliance with all applicable Environmental Laws,
promptly undertake, and shall cause each other Loan Party promptly to
undertake, any and all investigations, studies, sampling, testing, abatement,
cleanup, removal, remediation or other response actions necessary to remove,
remediate, clean up or abate any Hazardous Materials

 

111

Activity on, under or
about any Facility that is in violation of any Environmental Laws or that
presents a material risk of giving rise to an Environmental Claim that could
reasonably be expected to result, individually or in the aggregate, in a
Material Adverse Effect.

(ii)           Actions with Respect to
Environmental Claims and Violations of Environmental Laws.  Borrower shall promptly take, and shall cause
each other Loan Party promptly to take, any and all actions necessary to
(i) cure any violation of applicable Environmental Laws by Borrower or such
Loan Party that could reasonably be expected to result in, individually or in
the aggregate, a Material Adverse Effect and (ii) make an appropriate
response to any Environmental Claim against any Loan Party and discharge any
obligations it may have to any Person thereunder where failure to do so could
reasonably be expected to result in, individually or in the aggregate, a
Material Adverse Effect.

6.8                               Execution of Subsidiary
Guaranty and Personal Property Collateral Documents After the Restatement Date.

A.            Execution of Subsidiary Guaranty and
Personal Property Collateral Documents. 
In the event that any Person becomes a Material Subsidiary of Borrower
after the Restatement Date, Borrower will promptly notify Administrative Agent
of that fact and cause such Material Subsidiary to execute and deliver to
Administrative Agent a counterpart of the Subsidiary Guaranty and the Security
Agreement and to take all such further actions and execute all such further
documents and instruments as may be necessary or, in the opinion of
Administrative Agent, desirable to create in favor of Administrative Agent, for
the benefit of Lenders, a valid and perfected First Priority Lien on all of the
personal and mixed property assets of such Material Subsidiary described in the
applicable forms of Collateral Documents. 
In addition, as provided in the Security Agreement, Borrower shall, or
shall cause the Material Subsidiary that owns the Capital Stock of such Person,
to execute and deliver to Administrative Agent a supplement to the Security
Agreement and to deliver to Administrative Agent all certificates representing
such Capital Stock of such Person (accompanied by irrevocable undated stock
powers, duly endorsed in blank).

B.            Foreign Subsidiaries.  In the event that any Person becomes a
Foreign Subsidiary of Borrower after the Restatement Date, Borrower will
promptly notify Administrative Agent of that fact and, if such Subsidiary is
directly owned by Borrower or a Domestic Subsidiary, cause such Subsidiary to
execute and deliver to Administrative Agent such documents and instruments and
take such further actions as may be necessary, or in the reasonable opinion of
Administrative Agent, desirable to create in favor of Administrative Agent, for
the benefit of Lenders, a valid and perfected First Priority Lien on 65% of the
capital stock of such Foreign Subsidiary.

C.            Subsidiary Organizational Documents,
Legal Opinions, Etc.  In the event that
any Person becomes a Material Subsidiary after the Restatement Date, Borrower
shall deliver to Administrative Agent, together with such Loan Documents,
(i) certified copies of such Material Subsidiary’s Organizational
Documents, together with a good standing certificate from

 

112

the Secretary of State of the jurisdiction of its
organization, (ii) a certificate executed by the secretary or similar
officer of such Material Subsidiary as to (a) the fact that the attached
resolutions of the Governing Body of such Material Subsidiary approving and
authorizing the execution, delivery and performance of such Loan Documents are
in full force and effect and have not been modified or amended and (b) the
incumbency and signatures of the officers of such Material Subsidiary executing
such Loan Documents, (iii) an executed supplement to the Security
Agreement evidencing the pledge of the Capital Stock of such Material
Subsidiary by Borrower or a Subsidiary of Borrower that owns such Capital
Stock, accompanied by certificates evidencing such Capital Stock, together with
irrevocable undated stock powers duly endorsed in blank and satisfactory in
form and substance to Administrative Agent, and (iv) a favorable opinion
of counsel to such Material Subsidiary, in form and substance satisfactory to
Administrative Agent and its counsel, as to (a) the due organization and
good standing of such Material Subsidiary, (b) the due authorization,
execution and delivery by such Material Subsidiary of such Loan Documents,
(c) the enforceability of such Loan Documents against such Material
Subsidiary and (d) such other matters (including matters relating to the
creation and perfection of Liens in any Collateral pursuant to such Loan
Documents) as Administrative Agent may reasonably request, all of the foregoing
to be satisfactory in form and substance to Administrative Agent and its
counsel.

6.9                               Matters Relating to
Additional Real Property Collateral.

A.            Additional Mortgages, Etc.  From and after the Restatement Date, in the
event that (i) Parent, Borrower or any Subsidiary Guarantor acquires any
Material Real Property or (ii) at the time any Person becomes a Subsidiary
Guarantor, such Person owns or holds any Material Real Property, in either case
excluding any such Real Property Asset the encumbrancing of which requires the
consent of any applicable lessor or then-existing senior lienholder, where
Parent and its Subsidiaries have attempted in good faith, but are unable, to
obtain such lessor’s or senior lienholder’s consent (any such non-excluded
Material Real Property described in the foregoing clause (i) or (ii) being
an “Additional Mortgaged Property”), Parent, Borrower or such
Subsidiary Guarantor shall deliver to Administrative Agent, as soon as
practicable after such Person acquires such Additional Mortgaged Property or
becomes a Subsidiary Guarantor, as the case may be, a fully executed and
notarized Mortgage in proper form for recording in all appropriate places in
all applicable jurisdictions, encumbering the interest of such Loan Party in
such Additional Mortgaged Property and such opinions, appraisal, documents,
title insurance, environmental reports that may be reasonably required by
Administrative Agent.

B.            Real Estate Appraisals.  Borrower shall, and shall cause each of the
other Loan Parties to, permit an independent real estate appraiser reasonably
satisfactory to Administrative Agent, upon reasonable notice, to visit and
inspect any Additional Mortgaged Property for the purpose of preparing an
appraisal of such Additional Mortgaged Property satisfying the requirements of
any applicable laws and regulations (in each case to the extent required under
such laws and regulations as determined by Administrative Agent in its
discretion).

 

113

C.            Collateral Access Agreement. From and after the Restatement Date, in the event that (i) Parent,
Borrower or any Subsidiary Guarantor acquires any Leasehold Property or (ii) at
the time any Person becomes a Subsidiary Guarantor, such Person owns or holds
any Leasehold Property, in either case, (x) that is not a Material Real
Property and (y) where Parent, Borrower or any such Subsidiary Guarantor holds
on a regular basis at such Leasehold Property, personal property with a fair
market value in excess of (or Parent, Borrower or such Subsidiary Guarantor
anticipates that the fair market value of such personal property held on a
regular basis will, at any time during the term of such lease, equal to or
exceed) $7,500,000, Parent, Borrower or such Subsidiary Guarantor, as the case
may be, shall use its respective commercially reasonable efforts to deliver to
Administrative Agent, as soon as practicable after such Person acquires such
Leasehold Property or becomes a Subsidiary Guarantor, as the case may be, a
fully executed Collateral Access Agreement.

D.            Optional Guaranty.  In the
event that any Subsidiary of Parent executes a guaranty of the Senior
Subordinated Notes, any Permitted Additional Subordinated Financing or any
other Subordinated Indebtedness in a principal amount of $10,000,000 or more,
Borrower will cause such Subsidiary to execute and deliver to Administrative
Agent a counterpart of the Subsidiary Guaranty and Security Agreement, and
cause each such Subsidiary to take, all such further action and execute all
such further documents and instruments as may be necessary in the opinion of
Administrative Agent, desirable to create in favor of Administrative Agent, for
the benefit of Lenders, a valid First Priority Lien on substantially all
personal property and all Material Real Property of each such Subsidiary
described in the applicable forms of Collateral Documents.

Section
7.              BORROWER’S NEGATIVE
COVENANTS

Borrower covenants and
agrees that, so long as any of the Commitments hereunder shall remain in effect
and until payment in full of all of the Loans and other Obligations and the
cancellation or expiration of all Letters of Credit, unless Requisite Lenders
shall otherwise give prior written consent, Borrower shall perform, and shall
cause each of the other Loan Parties to perform, all covenants in this
Section 7.

7.1                               Indebtedness.

Parent and Borrower shall
not, and shall not permit any of their respective Subsidiaries to, directly or
indirectly, create, incur, assume or guaranty, or otherwise become or remain
directly or indirectly liable with respect to, any Indebtedness, except:

(i)            Loan Parties may become and remain
liable with respect to the Obligations;

(ii)           Parent, Borrower and their respective
Subsidiaries may become and remain liable with respect to Contingent
Obligations permitted by subsection 7.4 and, upon any matured obligations
actually arising pursuant thereto, the Indebtedness corresponding to the
Contingent Obligations so extinguished;

 

114

 

(iii)          Borrower and its Subsidiaries may
become and remain liable with respect to Indebtedness in respect of (a) Capital
Leases and (b) Purchase Money Indebtedness aggregating (with respect to clauses
(a) and (b)) not in excess of $25,000,000
outstanding at any one time;

(iv)          Borrower may become and remain liable
with respect to Indebtedness to any Subsidiary Guarantor, and any Subsidiary of
Borrower may become and remain liable with respect to Indebtedness to Borrower
or any other Subsidiary Guarantor of Borrower; provided that
(a) all such intercompany Indebtedness shall be evidenced by promissory
notes pledged to Administrative Agent, for benefit of Lenders, pursuant to the
Security Agreement, (b) all such intercompany Indebtedness owed by
Borrower to any Subsidiary Guarantor shall be subordinated in right of payment
to the payment in full of the Obligations pursuant to the terms of the
applicable promissory notes or an intercompany subordination agreement,
(c) any payment by any Subsidiary of Borrower under any guaranty of the
Obligations shall result in a pro  tanto reduction of the amount
of any intercompany Indebtedness owed by such Subsidiary to Borrower or to any
of its Subsidiaries for whose benefit such payment is made, and (d) the
aggregate principal amount of all Indebtedness of all Subsidiaries of Borrower
that are not Subsidiary Guarantors to Borrower and the Subsidiary Guarantors
(other than any such Indebtedness incurred in connection with the consummation
of the Aluma Acquisition) shall not exceed $30,000,000 at any time outstanding;

(v)           Borrower may remain liable with
respect to Indebtedness evidenced by the Senior Subordinated Notes in an
aggregate principal amount not to exceed the principal amount of Senior
Subordinated Notes not tendered pursuant to the Senior Subordinated Notes
Tender Offer as of the Restatement Date;

(vi)          Borrower or a Subsidiary of Borrower
may become and remain liable with respect to Indebtedness of any Person assumed
in connection with any acquisition of such Person permitted under subsection 7.3
and a Person that becomes a direct or indirect wholly-owned Subsidiary of
Borrower as a result of any acquisition permitted under subsection 7.3 may
remain liable with respect to Indebtedness existing on the date of such
acquisition; provided that such Indebtedness was not created in
anticipation of such acquisition; and provided, further that such Indebtedness does not in
the aggregate exceed at any time outstanding $20,000,000;

(vii)         Foreign Subsidiaries of Borrower may
become and remain liable with respect to other Indebtedness in an aggregate
principal amount not to exceed $20,000,000
at any time outstanding;

(viii)        Borrower and its Subsidiaries, as
applicable, may remain liable with respect to, Indebtedness existing on the
Restatement Date and described in Schedule 7.1 annexed hereto;

(ix)           Borrower and its Subsidiaries, as
applicable, may become and remain liable with respect to Indebtedness which
refinances, refunds or replaces the Indebtedness

 

115

described in Schedule
7.1, pursuant to documentation in form and substance reasonably
satisfactory to Administrative Agent; provided that (w) such refinancing
Indebtedness shall be incurred by Borrower or such applicable Subsidiary, as
the case may be, that incurred the Indebtedness being refinanced that is
described in Schedule 7.1, (x) the maturity date of such refinancing
Indebtedness shall be no earlier than the maturity date of the Indebtedness
described in Schedule 7.1 that is being refinanced, (y) the weighted
average life to maturity of such refinancing Indebtedness at the time of such
refinancing is no less than the weighted average life to maturity of the
Indebtedness being refinanced, and (z) the aggregate principal amount of such
refinancing Indebtedness shall be less than the lesser of (1) the sum of the
aggregate principal amount of the Indebtedness being refinanced as of the date
of such refinancing plus all related costs, fees and expenses related to
the refinancing and (2) the aggregate principal amount of such Indebtedness as
of the Restatement Date;

(x)            Borrower may become and remain liable
with respect to Indebtedness constituting Permitted Additional Subordinated
Financing in an aggregate principal amount not to exceed $100,000,000 to the
extent the full amount of the Net Debt Securities Proceeds of such Permitted
Additional Subordinated Financing is used solely (a) to finance the Cash
consideration payable in a Permitted Acquisition (including the refinancing of
Indebtedness of the Acquired Entity and the payment of related fees and
expenses) or (b) to prepay outstanding Term Loans pursuant to
subsection 2.4B(i); provided
that (1) Borrower shall be in compliance on a pro forma basis after giving effect to any incurrence of
Permitted Additional Subordinated Financing (after giving pro forma
effect to the application of the proceeds thereof) with each of the financial
covenants set forth in subsection 7.6, (2) no Event of Default or
Potential Event of Default shall have occurred and be continuing or would
result from such incurrence, and (3) Borrower shall have delivered to
Administrative Agent an Officer’s Certificate to the effect set forth in the
foregoing clauses (1) and (2) and a Compliance Certificate to evidence
clause (1); and

(xi)           Borrower and its Subsidiaries may become
and remain liable with respect to other Indebtedness in an aggregate principal
amount not to exceed $30,000,000 at any time outstanding.

7.2                               Liens and Related Matters.

A.            Prohibition on Liens. 
Each of Parent and Borrower shall not, and shall not permit any of its
Subsidiaries to, directly or indirectly, create, incur, assume or permit to
exist any Lien on or with respect to any property or asset of any kind
(including any document or instrument in respect of goods or accounts
receivable) of Parent, Borrower or such Subsidiary, whether now owned or
hereafter acquired, or any income or profits therefrom, or file or permit the
filing of, or permit to remain in effect, any financing statement or other
similar notice of any Lien with respect to any such property, asset, income or
profits under the UCC or under any similar recording or notice statute, except:

(i)            Permitted Encumbrances;

 

116

(ii)           Liens on any asset existing at the
time of acquisition of such asset by Borrower or a Subsidiary, or Liens to
secure the payment of all or any part of the purchase price of an asset upon
the acquisition of such asset by Borrower or a Subsidiary or to secure any
Indebtedness permitted hereby incurred by Borrower or a Subsidiary at the time
of or within ninety days after the acquisition of such asset, which
Indebtedness is incurred for the purpose of financing all or any part of the
purchase price thereof; provided, however, that the Lien shall
apply only to the asset so acquired and proceeds thereof; and provided, further,
that all such Liens do not in the aggregate secure Indebtedness in excess of $25,000,000 at any time;

(iii)          Liens existing on the Restatement Date
and described in Schedule 7.2 annexed hereto;

(iv)          Other Liens securing Indebtedness in
an aggregate amount not to exceed $15,000,000
at any time outstanding; and

(v)           Liens on assets of Foreign
Subsidiaries securing Indebtedness permitted pursuant to subsection 7.1(vii).

B.            Equitable Lien in Favor of
Lenders.  If Parent or any of its
Subsidiaries shall create or assume any Lien upon any of its properties or
assets, whether now owned or hereafter acquired, other than Liens excepted by
the provisions of subsection 7.2A, it shall make or cause to be made
effective provision whereby the Obligations will be secured by such Lien
equally and ratably with any and all other Indebtedness secured thereby as long
as any such Indebtedness shall be so secured; provided that, notwithstanding
the foregoing, this covenant shall not be construed as a consent by Requisite
Lenders to the creation or assumption of any such Lien not permitted by the
provisions of subsection 7.2A.

C.            No Further Negative Pledges.  Neither Parent nor any of its Subsidiaries
shall enter into any agreement (other than an agreement prohibiting only the
creation of Liens securing Subordinated Indebtedness) prohibiting the creation
or assumption of any Lien upon any of its properties or assets, whether now
owned or hereafter acquired, except with respect to specific property
encumbered to secure payment of particular Indebtedness or to be sold pursuant
to an executed agreement with respect to an Asset Sale.

D.            No Restrictions on Subsidiary
Distributions to Borrower or Other Subsidiaries. 
Parent will not, and will not permit any of its Subsidiaries to, create
or otherwise cause or suffer to exist or become effective any consensual
encumbrance or restriction of any kind on the ability of any such Subsidiary to
(i) pay dividends or make any other distributions on any of such
Subsidiary’s Capital Stock owned by Borrower or any other Subsidiary of
Borrower, (ii) repay or prepay any Indebtedness owed by such Subsidiary to
Borrower or any other Subsidiary of Borrower, (iii) make loans or advances
to Borrower or any other Subsidiary of Borrower, or (iv) transfer any of
its property or assets to Borrower or any other Subsidiary of Borrower, except
(a) as provided in this Agreement and (b) as may be provided in an agreement
with respect to an Asset Sale (but solely with respect to the assets subject to
such Asset Sale).

 

117

7.3                               Investments; Acquisitions.

Each of Parent and
Borrower shall not, and shall not permit any of its Subsidiaries to, directly
or indirectly, make or own any Investment in any Person, including any Joint
Venture, or acquire, by purchase or otherwise, all or substantially all the
business, property or fixed assets of, or Capital Stock or other ownership interest
of any Person, or any division or line of business of any Person except:

(i)            Parent and its Subsidiaries may make
and own Investments in Cash Equivalents (and may continue to hold such
Investments notwithstanding that such Investments may no longer qualify as a
Cash Equivalent);

(ii)           Parent and its Subsidiaries may
continue to own the Investments owned by them as of the Restatement Date in any
Subsidiaries of Parent, Parent may make and own additional equity Investments
in Borrower and Borrower and Subsidiary Guarantors may make and own additional
equity Investments in their respective Subsidiary Guarantors;

(iii)          Borrower and its Subsidiaries may make
intercompany loans to the extent permitted under subsection 7.1(iv);

(iv)          Borrower and its Subsidiaries may make
Capital Expenditures permitted by subsection 7.8;

(v)           Borrower and its Subsidiaries may
continue to own the Investments owned by them on the Restatement Date and
described in Schedule 7.3 annexed hereto;

(vi)          Borrower and its Subsidiaries may make
additional Investments in their respective wholly-owned Foreign Subsidiaries; provided
that (a) the amount of all such Investments constituting equity
Investments (other than any such equity Investments made in connection with the
consummation of the Aluma Acquisition) does not exceed $30,000,000 in the aggregate for all such Investments since the
Original Closing Date and (b) the amount of all such Investments
constituting loans or advances permitted under subsection 7.1(iv) (other
than any such loans or advances made in connection with the consummation of the
Aluma Acquisition) does not exceed $30,000,000 in aggregate principal amount at
any time outstanding;

(vii)         Borrower and its Subsidiaries may make
and own other Investments (a) in an aggregate amount not to exceed at any
time $25,000,000, (b) in an amount not to exceed the Available Excess Cash
Flow Amount immediately prior to the making of such Investment or (c) to
the extent such Investment is financed with Specified Equity Proceeds within
six months after Borrower’s receipt thereof (to the extent such Specified
Equity Proceeds shall not have been utilized to make Capital Expenditures
pursuant to subsection 7.8(ii)); provided that the amount of
Investments permitted under this clause (vii) shall be reduced on a
dollar-for-dollar basis by the amount of any Contingent Obligations incurred
pursuant to clause (b) of subsection 7.4(vii).

 

118

(viii)        Borrower may acquire and hold
obligations of one or more officers or other employees of Borrower or its
Subsidiaries in connection with such officers’ or employees’ acquisition of
shares of Parent’s common stock in an aggregate amount at any time outstanding
not to exceed $7,500,000 (to the extent that such acquisition and holding do
not violate any applicable law or regulation);

(ix)           Borrower and its Subsidiaries may
receive and hold promissory notes and other non-cash consideration received in
connection with any Asset Sale permitted by subsection 7.7;

(x)            Borrower and its Subsidiaries may
acquire Securities in connection with the satisfaction or enforcement of
Indebtedness or claims due or owing to Borrower or any of its Subsidiaries or
as security for any such Indebtedness or claim;

(xi)           Borrower and its Subsidiaries may
acquire all or substantially all the assets of a Person or line of business of
such Person, or not less than 100% of the equity interests (other than
directors’ qualifying shares) of a Person (referred to herein as the “Acquired Entity”); provided that (a) such
acquisition was not preceded by an unsolicited tender offer for such equity
interests by, or proxy contest initiated by, Borrower or any of its
Subsidiaries; (b) the Acquired Entity shall be in a similar line of
business as that of Borrower and its Subsidiaries as conducted during the
current and most recent calendar year (or in a line of business that is
reasonably ancillary or otherwise reasonably related or complementary thereto);
and (c) at the time of such transaction (i) both before and after
giving effect thereto, no Event of Default or Potential Event of Default shall
have occurred and be continuing; (ii) Borrower would be in compliance with
each of the financial covenants set forth in subsection 7.6 as of the most
recently completed period of four consecutive fiscal quarters ending prior to
such transaction for which the financial statements and certificates required
by subsections 6.1(ii) or 6.1(iii), as the case may be, and 6.1(iv) have been
delivered or for which comparable financial statements have been filed with the
Securities and Exchange Commission, after giving pro forma
effect to such transaction and to any other event occurring after such period
as to which pro forma recalculation is appropriate
(including any other transaction described in this subsection 7.3(xi) occurring
after such period) as if such transaction had occurred as of the first day of
such period (with respect to any such transaction occurring during any period
for which the maximum Leverage Ratio permitted by subsection 7.6B is
greater than 3.50:1.00, assuming, for purposes of pro forma
compliance with subsection 7.6B, that the maximum Leverage Ratio permitted at
the time by such subsection was in fact 0.25 to 1.00 less than the ratio
actually provided for in such subsection at such time); (iii) after giving
effect to such acquisition, the sum of (x) the amount of unused and
available Revolving Loan Commitments and (y) the aggregate amount of
unrestricted Cash and Cash Equivalents on hand of the Borrower and its
Subsidiaries shall not be less than $10,000,000; (iv) Borrower shall have
complied with, and shall have caused the Acquired Entity to comply with, the
requirements of subsections 6.8 and 6.9, to the extent applicable, on or
promptly following the closing date of such acquisition; and (v) Borrower
shall have delivered a certificate of a financial Officer, certifying as to the
foregoing and containing reasonably detailed calculations in

 

119

support thereof, in form
and substance satisfactory to Administrative Agent (any acquisition of an
Acquired Entity meeting all the criteria of this subsection 7.3(xi) being
referred to herein as a “Permitted Acquisition”);
and

(xii)          wholly-owned Foreign Subsidiaries may
make Investments in other wholly-owned Foreign Subsidiaries.

7.4                               Contingent Obligations.

Each of Parent and Borrower shall not, and shall not
permit any of its Subsidiaries to, directly or indirectly, create or become or
remain liable with respect to any Contingent Obligation, except:

(i)            (a) Subsidiaries of Borrower
may become and remain liable with respect to Contingent Obligations in respect
of the Subsidiary Guaranty, (b) Parent may become and remain liable with
respect to Contingent Obligations in respect of the Parent Guaranty,
(c) Loan Parties may become and remain liable with respect to Contingent
Obligations in respect of obligations of any other Loan Party and
(d) Foreign Subsidiaries may become and remain liable with respect to Contingent
Obligations in respect of obligations of any other Foreign Subsidiary;

(ii)           Parent and Subsidiaries of Borrower
may become and remain liable with respect to Contingent Obligations in respect
of the Indebtedness under the Senior Subordinated Note Indenture and any
indenture governing any Permitted Additional Subordinated Financing; provided
that (a) no guaranty by Parent or any Subsidiary of Borrower of such
Indebtedness shall be permitted unless Parent or such Subsidiary shall have
also provided a guaranty of, and provided security for, the Obligations
(substantially on the terms set forth in the Parent Guaranty, the Subsidiary
Guaranty and the Security Agreement (as set forth in subsection 6.8)) and
(b) such guaranty shall be subordinated to the guaranty of the Obligations
on terms at least as favorable to Lenders as those contained in the
subordination provisions of such Indebtedness;

(iii)          Borrower may become and remain liable
with respect to Contingent Obligations in respect of Letters of Credit;

(iv)          Borrower may become and remain liable
with respect to Contingent Obligations under Hedge Agreements entered into for
non-speculative purposes;

(v)           Borrower and its Subsidiaries may
become and remain liable with respect to Contingent Obligations in respect of
customary indemnification and purchase price adjustment obligations incurred in
connection with Asset Sales or other sales of assets consistent with past
business practices;

(vi)          Borrower and its Subsidiaries, as
applicable, may remain liable with respect to Contingent Obligations existing
on the Restatement Date and described in Schedule 7.4 annexed
hereto; and

 

120

(vii)         Borrower and its Subsidiaries may
become and remain liable with respect to other Contingent Obligations; provided
that the maximum aggregate liability, contingent or otherwise, of Borrower and
its Subsidiaries in respect of all such Contingent Obligations shall at no time
exceed the sum of (a) $20,000,000 and
(b) an amount equal to the unused portion of the amount of Investments
permitted to be made pursuant to subsection 7.3(vii).

7.5                               Restricted Junior Payments.

Parent
and Borrower shall not, and shall not permit any of their respective
Subsidiaries to, directly or indirectly, declare, order, pay, make or set apart
any sum for any Restricted Junior Payment; provided that
(i) Borrower may make regularly scheduled payments of interest in respect
of any Senior Subordinated Notes that remain outstanding as of the Restatement
Date pursuant to subsection 7.1(v) and any Permitted Additional
Subordinated Financing in accordance with the terms of, and only to the extent
required by, and subject to the subordination provisions contained in the
Senior Subordinated Note Indenture or the indenture governing any such
Permitted Additional Subordinated Financing, as the case may be, as any such
indenture may be amended from time to time to the extent permitted under
subsection 7.12B, (ii) Borrower may make Restricted Junior Payments to
Parent (a) in an aggregate amount not to exceed $2,000,000 in any Fiscal Year, to the
extent necessary to permit Parent to pay its overhead expenses and (b) in
an amount necessary to permit Parent to discharge the consolidated tax
liabilities of Parent and its Subsidiaries paid in cash, in each case so long
as Parent applies the amount of any such Restricted Junior Payment for such
purpose, (iii) Borrower may make Restricted Junior Payments to pay
Additional Costs in accordance with the definition of Additional Costs, and (iv) so
long as (A) no Event of Default or Potential Event of Default shall have
occurred and be continuing on the date such Restricted Junior Payment is
declared or to be made, nor would an Event of Default or Potential Event of
Default result from the making of such Restricted Junior Payment, (B) after
giving effect to the making of such Restricted Junior Payment Borrower shall be
in pro forma compliance with each
of the covenants contained in subsection 7.6 for the most recent full Fiscal
Quarter immediately preceding the date of the payment of such Restricted Junior
Payment for which the relevant financial information has been delivered
pursuant to clauses (ii) and (iii) of subsection 6.1, and (C) Borrower shall
have delivered to Administrative Agent an Officer’s Certificate in form and
substance satisfactory to Administrative Agent (including a calculation of the
compliance with the covenants contained in subsection 7.6) certifying as to the
accuracy of the foregoing clauses (A) and (B) above, (1) Borrower may make
Restricted Junior Payments to Parent to the extent necessary to permit Parent
to purchase, redeem, acquire or otherwise retire for value shares of Capital
Stock of Parent held by directors, officers or employees of Parent or Borrower
or any of their respective Subsidiaries, or options on any such shares or
related stock appreciation rights or similar securities owned by such
directors, officers or employees (or their estates of beneficiaries under their
estates), in all cases only upon death, disability, retirement, termination of
employment or pursuant to the terms of such stock option plan or any other
agreement under which such shares of Capital Stock, options, related rights or
similar securities were issued, in an aggregate amount not to exceed $5,000,000
in any Fiscal Year; provided that Borrower may carry forward to each
succeeding Fiscal Year the aggregate amount of Restricted Payments permitted
(but not made)

 

121

pursuant to this clause
(iv)(1) in prior Fiscal Years, with up to a maximum amount of $10,000,000 over
the term of this Agreement and (2) Borrower may make Restricted Junior Payments
in an aggregate amount not to exceed $3,000,000 in any Fiscal Year; provided
that Borrower may carry forward to each succeeding Fiscal Year the aggregate
amount of Restricted Payments permitted (but not made) pursuant to this clause
(iv)(2) in prior Fiscal Years, with up to a maximum amount of $10,000,000
during the term of this Agreement.

7.6                               Financial Covenants.

A.            Minimum Interest Coverage Ratio.  Each Loan Party shall not permit the ratio of
(i) EBITDA to (ii) Cash Interest Expense, in each case calculated on
a Pro Forma Basis, for any four-Fiscal Quarter period ending during any of the
periods set forth below to be less than the correlative ratio indicated:

	
  Period

  	
   

  	
  Minimum Interest 

  Coverage Ratio

  	
   

  
	
  Restatement Date through
  September 30, 2007

  	
   

  	
  2.75
  to 1.00

  	
   

  
	
  October 1, 2007 and
  thereafter

  	
   

  	
  3.00
  to 1.00

  	
   

  

 

B.            Maximum Leverage Ratio.  Each Loan Party shall not permit the Leverage
Ratio, calculated on a Pro Forma Basis as of the last day of the most recently
ended Fiscal Quarter ending during any of the periods set forth below to exceed
the correlative ratio indicated:

	
  Period

  	
   

  	
  Maximum Leverage Ratio

  	
   

  
	
  Restatement Date through
  September 30, 2006

  	
   

  	
  4.75
  to 1.00

  	
   

  
	
  October 1, 2006, through
  December 31, 2006

  	
   

  	
  4.50
  to 1.00

  	
   

  
	
  January 1, 2007, through
  September 30, 2007

  	
   

  	
  4.25
  to 1.00

  	
   

  
	
  October 1, 2007, through
  December 31, 2007

  	
   

  	
  4.00
  to 1.00

  	
   

  
	
  January 1, 2008, through
  December 31, 2008

  	
   

  	
  3.75
  to 1.00

  	
   

  
	
  January 1, 2009, through
  December 31, 2009

  	
   

  	
  3.50
  to 1.00

  	
   

  
	
  January 1, 2010 and
  thereafter

  	
   

  	
  3.00
  to 1.00

  	
   

  

 

7.7                               Restriction on Fundamental
Changes; Asset Sales.

Each of Parent and
Borrower shall not, and shall not permit any of its Subsidiaries to, alter the
corporate, capital or legal structure of Parent or any of its Subsidiaries, or
enter into any transaction of merger or consolidation, or liquidate, wind-up or
dissolve itself (or suffer any

 

122

liquidation or
dissolution), or convey, sell, lease or sub-lease (as lessor or sublessor),
transfer or otherwise dispose of, in one transaction or a series of
transactions, all or any part of its business, property or assets (including
its notes or receivables and Capital Stock of a Subsidiary, whether newly
issued or outstanding), whether now owned or hereafter acquired, except:

(i)            (x) any Subsidiary of Borrower
may be merged with or into Borrower or any wholly-owned Subsidiary Guarantor,
or be liquidated, wound up or dissolved, or all or any part of its business,
property or assets may be conveyed, sold, leased, transferred or otherwise
disposed of, in one transaction or a series of transactions, to Borrower or any
wholly-owned Subsidiary Guarantor; provided that, in the case of such a
merger, Borrower or such wholly-owned Subsidiary Guarantor shall be the
continuing or surviving Person, (y) any Foreign Subsidiary of Borrower may
be merged with or into any other Foreign Subsidiary of Borrower, or be
liquidated, wound up or dissolved, or all or any part of its business, property
or assets may be conveyed, sold, leased, transferred or otherwise disposed of,
in one transaction or a series of transactions, to any Foreign Subsidiary of
Borrower and (z)(1) Borrower and any Subsidiary of Borrower may convert
from a corporation to a limited liability company (or, in respect of any
Canadian Subsidiary, an unlimited liability company), or vice versa, and
(2) any Subsidiary of Borrower may change its jurisdiction of
incorporation or formation, in either case so long as (a) if any such
Subsidiary was a Domestic Subsidiary before giving effect to such conversion or
change, it will continue to be a Domestic Subsidiary after giving effect to
such conversion or change, (b) if any such Subsidiary was a Subsidiary
Guarantor before giving effect to such conversion or change, it will continue
to be a Subsidiary Guarantor after giving effect to such conversion or change,
(c) in the case of the conversion of Borrower from a corporation to a
limited liability company, Borrower shall provide in its limited liability
company constituent documents that its membership interests shall constitute “Securities”
within the meaning of Article 8 of the Delaware UCC and one or more
certificates representing all such membership interests shall be pledged by
Parent to Administrative Agent, for the benefit of Lenders, promptly following
such conversion of Borrower, (d) if the Capital Stock of such Subsidiary was
pledged to Administrative Agent (or to any Supplemental Collateral Agent), for
the benefit of Lenders, before giving effect to such conversion or change, it
will continue to be (or will immediately become) pledged to Administrative
Agent (or to a Supplemental Collateral Agent), for the benefit of Lenders,
after giving effect to such conversion or change, (e) Borrower shall
deliver a written notice under subsection 6.1(xv) with respect to such
Subsidiary as though such Subsidiary had become a Subsidiary of Parent or
Borrower as a result of such conversion or change (it being understood that
such written notice shall be deemed to supplement Schedule 5.1
annexed hereto for all purposes of this Agreement), and (f) Borrower
shall, and shall cause the other Loan Parties to, give notice of such
conversion or change in accordance with the Security Agreement, deliver updated
schedules to the Security Agreement, take such other actions as may be required
under the Security Agreement, this Agreement, and the other Loan Documents, and
take such further actions (including, without limitation, actions similar to
those contemplated by subsections 6.8 and 6.9 of this Agreement) as may be
necessary or, in the opinion of Administrative Agent, desirable in order to continue
and maintain the existence, 

 

123

attachment, perfection,
and priority of all Liens in favor of Administrative Agent (or any Supplemental
Collateral Agent), for the benefit of Lenders, on the Capital Stock or assets
of such Subsidiary as in effect before giving effect to such conversion or
change;

(ii)           Borrower and its Subsidiaries may
sell or otherwise dispose of assets in transactions that do not constitute
Asset Sales; provided that the consideration received for such assets
shall be in an amount at least equal to the fair market value thereof;

(iii)          Notwithstanding clause (ii)
above, Borrower and its Subsidiaries may dispose of obsolete, worn out or
surplus property in the ordinary course of business;

(iv)          Borrower and its Subsidiaries may make
(A) the Concrete Construction Asset Sale and (B) Asset Sales (other than the
Concrete Construction Asset Sale) of assets having a fair market value not in
excess of $20,000,000 in any
Fiscal Year and $40,000,000 in the aggregate for all such Asset Sales since the
Original Closing Date; provided that (a) the consideration received
for such assets shall be in an amount at least equal to the fair market value
thereof; (b) the sole consideration received shall consist of not less
than 80% in Cash; and (c) the proceeds of such Asset Sales shall be
applied as required by subsection 2.4B(iii)(a) or subsection 2.4D;

(v)           in order to resolve disputes that
occur in the ordinary course of business, Borrower and its Subsidiaries may
discount or otherwise compromise for less than the face value thereof, notes or
accounts receivable;

(vi)          Borrower or a Subsidiary may sell or
dispose of shares of Capital Stock of any of its Subsidiaries in order to
qualify members of the Governing Body of the Subsidiary if required by
applicable law; and

(vii)         Any Person may substantially
simultaneously be merged or consolidated with or into Borrower or any
Subsidiary if the acquisition of the Capital Stock of such Person by Borrower
or such Subsidiary would have been permitted pursuant to subsection 7.3; provided
that (a) in the case of Borrower, Borrower shall be the continuing or
surviving Person, (b) if a Subsidiary is not the surviving or continuing
Person, the surviving Person becomes a Subsidiary and complies with the
provisions of subsection 6.8 and (c) no Potential Event of Default or
Event of Default shall have occurred or be continuing after giving effect
thereto.

7.8                               Capital Expenditures.

(i)            Each of Parent and Borrower shall
not, and shall not permit its Subsidiaries to, make or incur Capital
Expenditures net of any proceeds received by Borrower from the sale of
scaffolding (other than new scaffolding), in any Fiscal Year indicated below,
in an aggregate amount in excess of the corresponding amount (the “Maximum Consolidated Net Capital Expenditures Amount”) set
forth below opposite such Fiscal Year; provided that (a) the Maximum
Consolidated Net Capital Expenditures Amount for any Fiscal Year shall be
increased by an amount equal to the

124

excess, if any, of the
Maximum Consolidated Net Capital Expenditures Amount for the previous Fiscal
Year over the actual amount of Capital Expenditures (net of any proceeds
received by Borrower or any Subsidiary from the sale of scaffolding equipment
(other than scaffolding inventory held for sale in the ordinary course of
business)) for such previous Fiscal Year and (b) the Maximum Consolidated Net
Capital Expenditures Amount that would otherwise be permitted in any such
Fiscal Year pursuant to this subsection 7.8 (including as a result of the
application of clause (a) above) may be increased by an amount not to
exceed $10,000,000 (the “CapEx Pull-Forward Amount”).  The actual CapEx Pull-Forward Amount in respect
of any such Fiscal Year shall reduce, on a dollar-for-dollar basis, the Maximum
Consolidated Net Capital Expenditures Amount applicable to the immediately
succeeding Fiscal Year (provided that, other than in respect of the 2012
Fiscal Year, the Company may apply the CapEx Pull-Forward Amount in such
immediately succeeding Fiscal Year):

 

	
  Fiscal Year

  	
   

  	
  Maximum

  Consolidated Net

  Capital

  Expenditures

  	
   

  
	
  2006

  	
   

  	
  $55,000,000

  	
   

  
	
  2007

  	
   

  	
  $55,000,000

  	
   

  
	
  2008

  	
   

  	
  $55,000,000

  	
   

  
	
  2009 and each Fiscal Year
  thereafter

  	
   

  	
  $45,000,000

  	
   

  

 

(ii)           Notwithstanding anything contained
herein to the contrary, Borrower and its Subsidiaries may make or incur Capital
Expenditures actually made or incurred with Specified Equity Proceeds within
six months after Borrower’s receipt thereof (to the extent such Specified
Equity Proceeds shall not have been utilized to make Investments pursuant to
clause (c) of subsection 7.3(vii); provided that the aggregate
amount of all such Capital Expenditures made or incurred after the Restatement
Date shall not exceed $40,000,000.

7.9                               Transactions with
Shareholders and Affiliates.

Each of Parent and
Borrower shall not, and shall not permit any of its Subsidiaries to, directly
or indirectly, enter into or permit to exist any transaction (including the purchase,
sale, lease or exchange of any property or the rendering of any service) with
any holder of 10% or more of any class of equity Securities of Parent or
Borrower or with any Affiliate of Parent or Borrower or of any such holder, on
terms that are less favorable to Borrower or such other Loan Party, as the case
may be, than those that might be obtained at the time from Persons who are not
such a holder or Affiliate; provided that the foregoing restriction
shall not apply to (i) any

 

125

transaction
between Parent or Borrower and any of the wholly-owned Subsidiaries of Parent
or between any of the wholly-owned Subsidiaries of Parent or
(ii) reasonable and customary fees paid to members of the Governing Bodies
of Parent and its Subsidiaries.

7.10                        Limitations on Sales and
Lease-Backs.

Each of Parent and
Borrower shall not, and shall not permit any of its Subsidiaries to, directly
or indirectly, become or remain liable as lessee or as a guarantor or other
surety with respect to any lease, whether an Operating Lease or a Capital
Lease, of any property (whether real, personal or mixed), whether now owned or
hereafter acquired, (i) that Parent or any of its Subsidiaries has sold or
transferred or is to sell or transfer to any other Person (other than Parent or
any of its Subsidiaries) or (ii) that Parent or any of its Subsidiaries
intends to use for substantially the same purpose as any other property that
has been or is to be sold or transferred by Parent or any of its Subsidiaries
to any Person (other than Parent or any of its Subsidiaries) in connection with
such lease; provided, however, that Borrower and its Subsidiaries
may become and remain liable as lessee, guarantor or other surety with respect
to any such lease, to the extent that the aggregate proceeds resulting from the
sale of any such property in connection with any such transaction, together
with the Net Asset Sales Proceeds that are not Repayable Net Asset Sale
Proceeds pursuant to subsection 2.4B(iii), shall not exceed $3,000,000 in any
Fiscal Year; and provided, further, that Borrower and its
Subsidiaries may make Property Sale-Leasebacks.

7.11                        Conduct of Business.

From and after the
Restatement Date, Borrower shall not, and shall not permit any of its
Subsidiaries to, engage in any business other than (i) the businesses
engaged in by Borrower and its Subsidiaries on the Restatement Date and similar
lines of business (including businesses that are reasonably ancillary or
otherwise reasonably related or complementary thereto) and (ii) such other
lines of business as may be consented to by Requisite Lenders.  Parent shall not (i) engage in any
business other than entering into and performing its obligations under and in
accordance with the Loan Documents and Related Agreements to which it is a
party and activities incidental to its being a public reporting company or
(ii) own any assets other than (a) the Capital Stock of Borrower and
(b) Cash and Cash Equivalents in an amount not to exceed $500,000 at any one time for the
purpose of paying general operating expenses of Parent or otherwise holding
such Cash or Cash Equivalent pending application.

7.12                        Amendments or Waivers of
Certain Agreements; Amendments of Documents Relating to Indebtedness.

A.            Amendments or Waivers of Certain
Agreements; Indebtedness.  Neither
Parent nor Borrower nor any of its Subsidiaries will agree to any material
amendment to, or waive any of its material rights under, any Related Agreement
after the Restatement Date without in each case obtaining the prior written
consent of Requisite Lenders to such amendment or waiver.

B.            Amendments of Documents Relating to
Subordinated Indebtedness. 
Borrower shall not, and shall not permit any of its Subsidiaries to,
amend or otherwise change

 

126

the terms of any Subordinated Indebtedness, or make any
payment consistent with an amendment thereof or change thereto, if the effect
of such amendment or change is to increase the interest rate on such
Subordinated Indebtedness, change (to earlier dates) any dates upon which
payments of principal or interest are due thereon, change any event of default
or condition to an event of default with respect thereto (other than to
eliminate any such event of default or increase any grace period related
thereto), change the redemption, prepayment or defeasance provisions thereof,
change the subordination provisions thereof (or of any guaranty thereof), or
change any collateral therefor (other than to release such collateral), or if
the effect of such amendment or change, together with all other amendments or
changes made, is to increase materially the obligations of the obligor
thereunder or to confer any additional rights on the holders of such Subordinated
Indebtedness (or a trustee or other representative on their behalf) which would
be adverse to Borrower or Lenders.

7.13                        Fiscal Year.

Neither Parent nor
Borrower shall change its Fiscal Year-end from December 31.

Section
8.              EVENTS OF DEFAULT

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

8.1                               Failure to Make Payments
When Due.

Failure by Borrower to
pay any installment of principal of any Loan when due, whether at stated
maturity, by acceleration, by notice of voluntary prepayment, by mandatory
prepayment or otherwise; failure by Borrower to pay when due any amount payable
to an Issuing Lender in reimbursement of any drawing under a Letter of Credit;
or failure by Borrower to pay any interest on any Loan or any fee or any other
amount due under this Agreement within 3 Business Days after the date due; or

8.2                               Default in Other
Agreements.

(i)            Failure of any Loan Party to pay
when due any principal of or interest on or any other amount payable in respect
of one or more items of Indebtedness (other than Indebtedness referred to in
subsection 8.1) or Contingent Obligations in an individual principal
amount of $10,000,000 or more or
with an aggregate principal amount of $10,000,000
or more, in each case beyond the end of any grace period provided therefor; or

(ii)           breach or default by any Loan Party
with respect to any other material term of (a) one or more items of
Indebtedness or Contingent Obligations in the individual or aggregate principal
amounts referred to in clause (i) above or (b) any loan agreement,
mortgage, indenture or other agreement relating to such item(s) of Indebtedness
or Contingent Obligation(s), if the effect of such breach or default is to
cause, or to permit the holder or holders of that Indebtedness or Contingent
Obligation(s) (or a trustee on

 

127

behalf of such holder or
holders) to cause, that Indebtedness or Contingent Obligation(s) to become or
be declared due and payable prior to its stated maturity or the stated maturity
of any underlying obligation, as the case may be (upon the giving or receiving
of notice, lapse of time, both, or otherwise); or

8.3                               Breach of Certain
Covenants.

Failure of Borrower to
perform or comply with any term or condition contained in subsection 2.5,
6.1(i), or 6.2 or Section 7 of this Agreement; or

8.4                               Breach of Warranty.

Any representation,
warranty, certification or other statement made by Borrower or any of the other
Loan Parties in any Loan Document or in any statement or certificate at any
time given by any of the Loan Parties in writing pursuant hereto or thereto or
in connection herewith or therewith shall be false in any material respect on
the date as of which made; or

8.5                               Other Defaults Under Loan
Documents.

Any Loan Party shall
default in the performance of or compliance with any term contained in this
Agreement or any of the other Loan Documents, other than any such term referred
to in any other subsection of this Section 8, and such default shall
not have been remedied or waived within 30
days after the earlier of (i) an Officer of Borrower or such Loan Party
becoming aware of such default or (ii) receipt by Borrower and such Loan Party
of notice from Administrative Agent or any Lender of such default; or

8.6                               Involuntary Bankruptcy; Appointment of Receiver,
etc.

(i)            A court having jurisdiction in the
premises shall enter a decree or order for relief in respect of Parent,
Borrower or any Material Subsidiary of Parent in an involuntary case under the
Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar
law now or hereafter in effect, which decree or order is not stayed; or any
other similar relief shall be granted under any applicable federal or state
law; or

(ii)           an involuntary case shall be
commenced against Parent, Borrower or any other Material Subsidiary of Parent
under the Bankruptcy Code or under any other applicable bankruptcy, insolvency
or similar law now or hereafter in effect; or a decree or order of a court
having jurisdiction in the premises for the appointment of a receiver,
liquidator, sequestrator, trustee, custodian or other officer having similar
powers over Parent, Borrower or any Material Subsidiary of Parent, or over all
or a substantial part of its property, shall have been entered; or there shall
have occurred the involuntary appointment of an interim receiver, trustee or
other custodian of Parent, Borrower or any Material Subsidiary of Parent for
all or a substantial part of its property; or a warrant of attachment,
execution or similar process shall have been issued against any substantial
part of the property of Parent, Borrower or any Material Subsidiary of Parent,
and any

 

128

such event described in
this clause (ii) shall continue for 60 days unless dismissed, bonded
or discharged; or

8.7                               Voluntary Bankruptcy; Appointment of Receiver,
etc.

(i)            Parent, Borrower or any Material
Subsidiary of Parent shall have an order for relief entered with respect to it
or commence a voluntary case under the Bankruptcy Code or under any other
applicable bankruptcy, insolvency or similar law now or hereafter in effect, or
shall consent to the entry of an order for relief in an involuntary case, or to
the conversion of an involuntary case to a voluntary case, under any such law,
or shall consent to the appointment of or taking possession by a receiver,
trustee or other custodian for all or a substantial part of its property; or
Parent, Borrower or any Material Subsidiary of Parent shall make any assignment
for the benefit of creditors; or

(ii)           Parent, Borrower or any Material
Subsidiary of Parent shall be unable, or shall fail generally, or shall admit
in writing its inability, to pay its debts as such debts become due; or the
Governing Body of Parent, Borrower or any Material Subsidiary of Parent (or any
committee thereof) shall adopt any resolution or otherwise authorize any action
to approve any of the actions referred to in clause (i) above or this
clause (ii); or

8.8                               Judgments and Attachments.

Any money judgment, writ
or warrant of attachment or similar process involving (i) in any
individual case an amount in excess of $10,000,000
or (ii) in the aggregate at any time an amount in excess of $10,000,000 (in either case not
adequately covered by insurance as to which a solvent and unaffiliated
insurance company has acknowledged coverage) shall be entered or filed against
Parent or any of its Subsidiaries or any of their respective assets and shall
remain undischarged, unvacated, unbonded or unstayed for a period of
60 days (or in any event later than five days prior to the date of any
proposed sale thereunder); or

8.9                               Dissolution.

Any order, judgment or
decree shall be entered against Borrower or any other Loan Party decreeing the
dissolution or split up of Borrower or such other Loan Party and such order
shall remain undischarged or unstayed for a period in excess of 30 days;
or

8.10                        Employee Benefit Plans.

There shall occur one or
more ERISA Events which individually or in the aggregate results in or might
reasonably be expected to result in liability of any Loan Party in excess of
$5,000,000 during the term of this Agreement; or there shall exist an amount of
liability from unfunded benefit liabilities, calculated in accordance with the
provisions of subsection 5.11D, which exceeds $5,000,000; or

8.11                        Change in Control.

A Change in Control shall
have occurred; or

 

129

8.12                        Invalidity of Loan
Documents; Failure of Security; Repudiation of Obligations.

At any time after the
execution and delivery thereof, (i) any Loan Document or any provision
thereof, for any reason other than the satisfaction in full of all Obligations,
shall cease to be in full force and effect (other than in accordance with its
terms) or shall be declared to be null and void, (ii) Administrative Agent
shall not have or shall cease to have (or Borrower or any other Loan Party
shall assert in writing that Administrative Agent does not have or has ceased
to have) a valid and perfected First Priority Lien in any Collateral purported
to be covered by the Collateral Documents, in each case for any reason other
than the failure of Administrative Agent or any Lender to take any action
within its control and except to the extent that (a) such event relates to
assets of Borrower or any of its Subsidiaries which are, individually and in
the aggregate, immaterial and (b) such event is insured under a title insurance
policy issued to Administrative Agent for the benefit of Lenders and the
relevant insurer accepts in writing liability for any loss or damage sustained
by Administrative Agent as a result of it ceasing to have a valid and perfected
First Priority Lien under the insured Mortgage and acknowledges in writing that
the insured Mortgage is fully covered by the title insurance policy and that
Administrative Agent’s recovery is not subject to any restrictions other than
the provisions, conditions and stipulations set forth in the relevant title
insurance policy, or (iii) any Loan Party shall contest the validity or
enforceability of any Loan Document or any provision thereof in writing or deny
in writing that it has any further liability, including with respect to future
advances by Lenders, under any Loan Document or any provision thereof to which
it is a party.

THEN (i) upon the occurrence of any
Event of Default described in subsection 8.6 or 8.7, each of (a) the
unpaid principal amount of and accrued interest on the Loans, (b) an
amount equal to the maximum amount that may at any time be drawn under all
Letters of Credit then outstanding (whether or not any beneficiary under any
such Letter of Credit shall have presented, or shall be entitled at such time
to present, the drafts or other documents or certificates required to draw
under such Letter of Credit), and (c) all other Obligations shall
automatically become immediately due and payable, without presentment, demand,
protest or other requirements of any kind, all of which are hereby expressly
waived by Borrower, and the obligation of each Lender to make any Loan, the
obligation of Administrative Agent to issue any Letter of Credit and the right
of any Lender to issue any Letter of Credit hereunder shall thereupon
terminate, and (ii) upon the occurrence and during the continuation of any
other Event of Default, Administrative Agent shall, upon the written request or
with the written consent of Requisite Lenders, by written notice to Borrower,
declare all or any portion of the amounts described in clauses (a) through
(c) above to be, and the same shall forthwith become, immediately due and
payable, and the obligation of each Lender to make any Loan, the obligation of
Administrative Agent to issue any Letter of Credit and the right of any Lender
to issue any Letter of Credit hereunder shall thereupon terminate; provided
that the foregoing shall not affect in any way the obligations of Revolving
Lenders or Synthetic Letter of Credit Lenders, as the case may be, under
subsection 3.3C(i) or the obligations of Revolving Lenders to purchase
assignments of any unpaid Swing Line Loans as provided in
subsection 2.1A(ii).

 

130

Any amounts described in
clause (b) above, when received by Administrative Agent, shall be held by
Administrative Agent pursuant to the terms of the Security Agreement and shall
be applied as therein provided.

Section
9.              ADMINISTRATIVE AGENT

9.1                               Appointment.

A.                                    Appointment of Administrative Agent.  Credit Suisse is hereby appointed
Administrative Agent hereunder and under the other Loan Documents.  Each Lender hereby authorizes Administrative
Agent to act as its agent in accordance with the terms of this Agreement and
the other Loan Documents.  Administrative
Agent agrees to act upon the express conditions contained in this Agreement and
the other Loan Documents, as applicable. 
The provisions of this Section 9 are solely for the benefit of
Administrative Agent and Lenders and no Loan Party shall have rights as a third
party beneficiary of any of the provisions thereof.  In performing its functions and duties under
this Agreement, Administrative Agent (other than as provided in
subsection 2.1D) shall act solely as an agent of Lenders and does not
assume and shall not be deemed to have assumed any obligation towards or
relationship of agency or trust with or for Borrower or any other Loan Party.

B.                            Appointment of Supplemental Collateral
Agents.  It is the purpose of this
Agreement and the other Loan Documents that there shall be no violation of any
law of any jurisdiction denying or restricting the right of banking
corporations or associations to transact business as agent or trustee in such
jurisdiction.  It is recognized that in
case of litigation under this Agreement or any of the other Loan Documents, and
in particular in case of the enforcement of any of the Loan Documents, or in
case Administrative Agent deems that by reason of any present or future law of
any jurisdiction it may not exercise any of the rights, powers or remedies
granted herein or in any of the other Loan Documents or take any other action
which may be desirable or necessary in connection therewith, it may be
necessary that Administrative Agent appoint an additional individual or
institution as a separate trustee, co-trustee, collateral agent or collateral
co-agent (any such additional individual or institution being referred to
herein individually as a “Supplemental Collateral Agent” and collectively as “Supplemental
Collateral Agents”).

In the event that
Administrative Agent appoints a Supplemental Collateral Agent with respect to
any Collateral, (i) each and every right, power, privilege or duty
expressed or intended by this Agreement or any of the other Loan Documents to
be exercised by or vested in or conveyed to Administrative Agent with respect
to such Collateral shall be exercisable by and vest in such Supplemental
Collateral Agent to the extent, and only to the extent, necessary to enable
such Supplemental Collateral Agent to exercise such rights, powers and
privileges with respect to such Collateral and to perform such duties with
respect to such Collateral, and every covenant and obligation contained in the
Loan Documents and necessary to the exercise or performance thereof by such
Supplemental Collateral Agent shall run to and be enforceable by either
Administrative Agent or such Supplemental Collateral Agent, and (ii) the
provisions of this Section 9 and of subsections 10.2 and 10.3 that refer
to Administrative Agent shall inure to the benefit of such Supplemental
Collateral Agent and all references therein to Administrative

 

131

Agent shall be
deemed to be references to Administrative Agent and/or such Supplemental
Collateral Agent, as the context may require.

Should any instrument in
writing from Borrower or any other Loan Party be required by any Supplemental
Collateral Agent so appointed by Administrative Agent for more fully and
certainly vesting in and confirming to him or it such rights, powers,
privileges and duties, Borrower shall, or shall cause such Loan Party to,
execute, acknowledge and deliver any and all such instruments promptly upon
request by Administrative Agent.  In case
any Supplemental Collateral Agent, or a successor thereto, shall die, become
incapable of acting, resign or be removed, all the rights, powers, privileges
and duties of such Supplemental Collateral Agent, to the extent permitted by
law, shall vest in and be exercised by Administrative Agent until the
appointment of a new Supplemental Collateral Agent.

9.2                               Powers and Duties; General
Immunity.

A.                                    Powers; Duties Specified.  Each Lender irrevocably authorizes
Administrative Agent to take such action on such Lender’s behalf and to
exercise such powers, rights and remedies hereunder and under the other Loan
Documents as are specifically delegated or granted to Administrative Agent by
the terms hereof and thereof, together with such powers, rights and remedies as
are reasonably incidental thereto. 
Administrative Agent shall have only those duties and responsibilities
that are expressly specified in this Agreement and the other Loan
Documents.  Administrative Agent may
exercise such powers, rights and remedies and perform such duties by or through
its agents or employees.  Administrative
Agent shall not have, by reason of this Agreement or any of the other Loan
Documents, a fiduciary relationship in respect of any Lender or Borrower; and
nothing in this Agreement or any of the other Loan Documents, expressed or
implied, is intended to or shall be so construed as to impose upon
Administrative Agent any obligations in respect of this Agreement or any of the
other Loan Documents except as expressly set forth herein or therein.

B.                            No Responsibility for Certain Matters.  No Agent shall be responsible to any Lender
for the execution, effectiveness, genuineness, validity, enforceability,
collectibility or sufficiency of this Agreement or any other Loan Document or
for any representations, warranties, recitals or statements made herein or
therein or made in any written or oral statements or in any financial or other
statements, instruments, reports or certificates or any other documents
furnished or made by such Agent to Lenders or by or on behalf of any Loan Party
to such Agent or any Lender in connection with the Loan Documents and the
transactions contemplated thereby or for the financial condition or business
affairs of Borrower or any other Person liable for the payment of any
Obligations, nor shall such Agent be required to ascertain or inquire as to the
performance or observance of any of the terms, conditions, provisions,
covenants or agreements contained in any of the Loan Documents or as to the use
of the proceeds of the Loans or the use of the Letters of Credit or as to the
existence or possible existence of any Event of Default or Potential Event of
Default.  Anything contained in this
Agreement to the contrary notwithstanding, Administrative Agent shall not have
any liability arising from confirmations of the amount of outstanding Loans,
the Revolving Letter of Credit Usage or the Synthetic Letter of Credit Usage or
the component amounts thereof.

 

132

C.                            Exculpatory Provisions.  No Agent or any of its officers, directors,
employees or agents shall be liable to Lenders for any action taken or omitted
by such Agent under or in connection with any of the Loan Documents except to
the extent caused by such Agent’s gross negligence or willful misconduct.  An Agent shall be entitled to refrain from any
act or the taking of any action (including the failure to take an action) in
connection with this Agreement or any of the other Loan Documents or from the
exercise of any power, discretion or authority vested in it hereunder or
thereunder unless and until such Agent shall have received instructions in
respect thereof from Requisite Lenders (or such other Lenders as may be
required to give such instructions under subsection 10.6) and, upon
receipt of such instructions from Requisite Lenders (or such other Lenders, as
the case may be), such Agent shall be entitled to act or (where so instructed)
refrain from acting, or to exercise such power, discretion or authority, in
accordance with such instructions. 
Without prejudice to the generality of the foregoing, (i) each
Agent shall be entitled to rely, and shall be fully protected in relying, upon
any communication, instrument or document believed by it to be genuine and
correct and to have been signed or sent by the proper person or persons, and
shall be entitled to rely and shall be protected in relying on opinions and
judgments of attorneys (who may be attorneys for Parent and its Subsidiaries),
accountants, experts and other professional advisors selected by it; and
(ii) no Lender shall have any right of action whatsoever against an Agent
as a result of such Agent acting or (where so instructed) refraining from
acting under this Agreement or any of the other Loan Documents in accordance
with the instructions of Requisite Lenders (or such other Lenders as may be
required to give such instructions under subsection 10.6).

D.                            Agents Entitled to Act as Lender.  The agency hereby created shall in no way
impair or affect any of the rights and powers of, or impose any duties or
obligations upon, an Agent in its individual capacity as a Lender
hereunder.  With respect to its
participation in the Loans and the Letters of Credit, an Agent shall have the
same rights and powers hereunder as any other Lender and may exercise the same
as though it were not performing the duties and functions delegated to it
hereunder, and the term “Lender” or “Lenders” or any similar term shall, unless
the context clearly otherwise indicates, include each Agent in its individual
capacity.  An Agent and its Affiliates
may accept deposits from, lend money to, acquire equity interests in and
generally engage in any kind of commercial banking, investment banking, trust,
financial advisory or other business with Parent or any of its Affiliates as if
it were not performing the duties specified herein, and may accept fees and
other consideration from any Loan Party for services in connection with this
Agreement and otherwise without having to account for the same to Lenders.

9.3                               Independent Investigation
by Lenders; No Responsibility For Appraisal of Creditworthiness.

Each Lender agrees that
it has made its own independent investigation of the financial condition and
affairs of the Loan Parties in connection with the making of the Loans and the
issuance of Letters of Credit hereunder and that it has made and shall continue
to make its own appraisal of the creditworthiness of the Loan Parties. No Agent
shall have any duty or responsibility, either initially or on a continuing
basis, to make any such investigation or any such appraisal on behalf of
Lenders or to provide any Lender with any credit or other information with
respect thereto, whether coming into its possession before the making of the

 

133

Loans or at any
time or times thereafter, and no Agent shall have any responsibility with
respect to the accuracy of or the completeness of any information provided to
Lenders.

9.4                               Right to Indemnity.

Each Lender, in
proportion to its Pro Rata Share, severally agrees to indemnify each Agent and
its officers, directors, employees, agents, attorneys, professional advisors
and Affiliates to the extent that any such Person shall not have been
reimbursed by any Loan Party, for and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses (including counsel fees and disbursements and fees and disbursements
of any financial advisor engaged by Agents) or disbursements of any kind or
nature whatsoever which may be imposed on, incurred by or asserted against an
Agent or and other such Persons in exercising the powers, rights and remedies
of an Agent or performing duties of an Agent hereunder or under the other Loan
Documents or otherwise in its capacity as Agent in any way relating to or
arising out of this Agreement or the other Loan Documents; provided that
no Lender shall be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of an Agent resulting from such Agent’s gross negligence or willful
misconduct.  If any indemnity furnished
to an Agent or any other such Person for any purpose shall, in the opinion of
such Agent, be insufficient or become impaired, such Agent may call for
additional indemnity and cease, or not commence, to do the acts indemnified
against until such additional indemnity is furnished.

9.5                               Successor Administrative
Agent and Swing Line Lender.

A.                                    Successor Administrative Agent.  Any Agent may resign at any time by giving
30 days’ prior written notice thereof to Lenders and Borrower.  Upon any such notice of resignation,
Requisite Lenders may, with prior written consent of Borrower (which consent
shall not be unreasonably withheld) appoint a successor Administrative Agent; provided
that no consent of Borrower shall be required during the occurrence of an Event
of Default hereunder.  Upon the
acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, that successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Administrative Agent and the retiring Administrative Agent
shall be discharged from its duties and obligations under this Agreement. After
any retiring Agent’s resignation hereunder as an Agent, the provisions of this
Section 9 shall inure to its benefit as to any actions taken or omitted to
be taken by it while it was an Agent under this Agreement.

B.                            Successor Swing Line Lender.  Any resignation of Administrative Agent
pursuant to subsection 9.5A shall also constitute the resignation of
Credit Suisse or its successor as Swing Line Lender, and any successor
Administrative Agent appointed pursuant to subsection 9.5A shall, upon its
acceptance of such appointment, become the successor Swing Line Lender for all
purposes hereunder.  In such event
(i) Borrower shall prepay any outstanding Swing Line Loans made by the
retiring or removed Administrative Agent in its capacity as Swing Line Lender,
(ii) upon such prepayment, the retiring Administrative Agent and Swing
Line Lender shall surrender any Swing Line Note held by it to Borrower for
cancellation, and (iii) if so requested by the successor Administrative
Agent and Swing Line Lender in accordance

 

134

with subsection 2.1E, Borrower
shall issue a new Swing Line Note to the successor Administrative Agent and
Swing Line Lender substantially in the form of Exhibit VI annexed hereto,
in the principal amount of the Swing Line Loan Commitment then in effect and
with other appropriate insertions.

9.6                               Collateral Documents and
Guaranties.

Each Lender hereby
further authorizes Administrative Agent, on behalf of and for the benefit of
Lenders, to enter into each Collateral Document as secured party and to be the
agent for and representative of Lenders under each Guaranty and each Lender
agrees to be bound by the terms of each Collateral Document and each Guaranty; provided
that Administrative Agent shall not (i) enter into or consent to any
material amendment, modification, termination or waiver of any provision
contained in any Collateral Document or Guaranty or (ii) release any
Collateral (except as otherwise expressly permitted or required pursuant to the
terms of this Agreement or the applicable Collateral Document), in each case
without the prior consent of Requisite Lenders (or, if required pursuant to
subsection 10.6, all Lenders); provided, further, however,
that, without further written consent or authorization from Lenders,
Administrative Agent may execute any documents or instruments necessary to
(a) release any Lien encumbering any item of Collateral that is the
subject of a sale or other disposition of assets permitted by this Agreement or
to which Requisite Lenders have otherwise consented, (b) release any
Subsidiary Guarantor from the Subsidiary Guaranty if all of the Capital Stock
of such Subsidiary Guarantor is sold to any Person (other than an Affiliate of
Borrower) pursuant to a sale or other disposition permitted hereunder or to
which Requisite Lenders have otherwise consented or (c) subordinate the
Liens of Administrative Agent, on behalf of Lenders, to any Liens permitted by
subsection 7.2; provided that, in the case of a sale of such item
of Collateral or stock referred to in subdivision (a) or (b), the
requirements of subsection 10.14 are satisfied.  Anything contained in any of the Loan
Documents to the contrary notwithstanding, Borrower, Administrative Agent and each
Lender hereby agree that (1) no Lender shall have any right individually
to realize upon any of the Collateral under any Collateral Document or to
enforce any Guaranty, it being understood and agreed that all powers, rights
and remedies under the Collateral Documents and the Guaranties may be exercised
solely by Administrative Agent for the benefit of Lenders in accordance with
the terms thereof, and (2) in the event of a foreclosure by Administrative
Agent on any of the Collateral pursuant to a public or private sale,
Administrative Agent or any Lender may be the purchaser of any or all of such
Collateral at any such sale and Administrative Agent, as agent for and
representative of Lenders (but not any Lender or Lenders in its or their
respective individual capacities unless Requisite Lenders shall otherwise agree
in writing) shall be entitled, for the purpose of bidding and making settlement
or payment of the purchase price for all or any portion of the Collateral sold
at any such public sale, to use and apply any of the Obligations as a credit on
account of the purchase price for any collateral payable by Administrative
Agent at such sale.

9.7                               Duties of Other Agents.

Co-Documentation Agents, Syndication
Agent and each of the Co-Arrangers shall have no right (except, in the
case of Co-Arrangers, such rights as are expressly set forth herein), power,
obligation, liability, responsibility or duty under this Agreement other than
those

 

135

applicable to all
Lenders as such.  Without limiting the
foregoing, none of such Agents shall have or be deemed to have a fiduciary
relationship with any Lender.

9.8                               Administrative Agent May
File Proofs of Claim.

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

(i)            to file and prove a claim for the
whole amount of principal and interest owing and unpaid in respect of the Loans
and any other Obligations that are owing and unpaid and to file such other
papers or documents as may be necessary or advisable in order to have the
claims of Lenders and Agents (including any claim for the reasonable
compensation, expenses, disbursements and advances of Lenders and Agents and
their agents and counsel and all other amounts due Lenders and Agents under
subsections 2.3 and 10.2) allowed in such judicial proceeding, and

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

and any custodian,
receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender to make
such payments to Administrative Agent and, in the event that Administrative
Agent shall consent to the making of such payments directly to Lenders, to pay
to Administrative Agent any amount due for the reasonable compensation,
expenses, disbursements and advances of Agents and their agents and counsel,
and any other amounts due Agents under subsections 2.3 and 10.2.

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

Section 10.            MISCELLANEOUS

10.1                        Successors and Assigns;
Assignments and Participations in Loans and Letters of Credit.

A.            General.  This Agreement shall be binding upon the
parties hereto and their respective successors and assigns and shall inure to
the benefit of the parties hereto and the successors and assigns of Lenders (it
being understood that Lenders’ rights of assignment are subject to the further
provisions of this subsection 10.1). 
Neither Borrower’s rights or

 

136

obligations hereunder nor any interest therein may be
assigned or delegated by Borrower without the prior written consent of all
Lenders (and any attempted assignment or transfer by Borrower without such
consent shall be null and void).  No
sale, assignment or transfer or participation of any Revolving Letter of Credit
or Synthetic Letter of Credit, as the case may be (or any participation
therein), may be made separately from a sale, assignment, transfer or
participation of a corresponding interest in the Revolving Loan Commitment and
the Revolving Loans of the Revolving Lenders or in the Synthetic Letter of
Credit Commitment and the Synthetic Letter of Credit Loans of the Synthetic
Letter of Credit Lenders, as the case may be, effecting such sale, assignment,
transfer or participation.  Anything
contained herein to the contrary notwithstanding, except as provided in
subsection 2.1A(ii) and subsection 10.5, the Swing Line Loan
Commitment and the Swing Line Loans of Swing Line Lender may not be sold,
assigned or transferred as described below to any Person other than a successor
Administrative Agent and Swing Line Lender to the extent contemplated by
subsection 9.5.  Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns
permitted hereby and, to the extent expressly contemplated hereby, the
Affiliates of each of Administrative Agent and Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

B.    Assignments.

(i)            Amounts and Terms
of Assignments.  Any Lender may
assign to one or more Eligible Assignees all or any portion of its rights and
obligations under this Agreement; provided that (a), except
(1) in the case of an assignment of the entire remaining amount of the
assigning Lender’s rights and obligations under this Agreement or (2) in
the case of an assignment to a Lender or an Affiliate of a Lender or an
Approved Fund of a Lender, the aggregate amount of the Revolving Loan Exposure,
Term Loan Exposure or
Synthetic Letter of Credit Exposure, as
the case may be, of the assigning Lender and the assignee subject to each such
assignment shall not be less than $5,000,000, in the case of any assignment of
a Revolving Loan, the Dollar Equivalent of $1,000,000, in the case of any
assignment of a Term Loan, or $2,500,000, in the case of any assignment of a Synthetic
Letter of Credit Loan, unless each of
Administrative Agent and, so long as no Event of Default has occurred and is
continuing, Borrower otherwise consents (each such consent not to be
unreasonably withheld or delayed and related Approved Funds shall be
treated as one assignor or assignee, as the case may be, for purposes of the
minimum assignment requirement),
(b) each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender’s rights and obligations under
this Agreement with respect to the Loan or the Commitment assigned,
(c) the parties to each assignment shall electronically execute and
deliver to Administrative Agent an Assignment Agreement via an electronic
settlement system acceptable to Administrative Agent (or, if previously agreed
with Administrative Agent, manually execute and deliver to Administrative Agent
an Assignment Agreement), and shall pay to Administrative Agent a processing
and recordation fee of $3,500 (which fee may be waived or reduced at the sole
discretion of Administrative Agent and only one such fee shall be payable in
the case of simultaneous assignments to or by two or more Approved Funds), and the Eligible Assignee, if it shall not be
a Lender, shall deliver to

 

137

Administrative
Agent information reasonably requested by Administrative Agent, including such
forms, certificates or other evidence, if any, with respect to United States
federal income tax withholding matters and with respect to information requested
under the Patriot Act as the assignee under such Assignment Agreement may be
required to deliver to Administrative Agent pursuant to
subsection 2.7B(iii), (d) in the case of an assignment of all or a
portion of a Revolving Loan Commitment of any Lender, Administrative Agent,
Swing Line Lender and each Revolving Issuing Lender shall have given their
prior written consent to such assignment, (e) in
the case of an assignment of all or a portion of a Synthetic Letter of
Credit Commitment of any Lender, Administrative
Agent and each Synthetic Letter of Credit Issuing Lender shall have given their prior written consent to such
assignment, and (f), except in
the case of an assignment to another Lender (and except as provided in
subclauses (d) and (e) of this sentence), an Affiliate of a Lender or an
Approved Fund of a Lender, Administrative Agent and, if no Event of Default has
occurred and is continuing, Borrower, shall have consented thereto (which
consent shall not be unreasonably withheld); provided that no consent
of Borrower shall be required for an assignment during the primary syndication
of the Supplemental Term Loans to Persons identified by Administrative Agent to
Borrower on or prior to the Restatement Date.  Upon such execution, delivery and consent, from and after the
effective date specified in such Assignment Agreement, (y) the assignee
thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment
Agreement, shall have the rights and obligations of a Lender hereunder and
(z) the assigning Lender thereunder shall, to the extent that rights and
obligations hereunder have been assigned by it pursuant to such Assignment
Agreement, relinquish its rights (other than any rights which survive the
termination of this Agreement under subsection 10.9B) and be released from
its obligations under this Agreement (and, in the case of an Assignment
Agreement covering all or the remaining portion of an assigning Lender’s rights
and obligations under this Agreement, such Lender shall cease to be a party
hereto; provided that, anything contained in any of the Loan Documents
to the contrary notwithstanding, if such Lender is the Issuing Lender with
respect to any outstanding Letters of Credit such Lender shall continue to have
all rights and obligations of an Issuing Lender with respect to such Letters of
Credit until the cancellation or expiration of such Letters of Credit and the
reimbursement of any amounts drawn thereunder). 
The assigning Lender shall, upon the effectiveness of such
assignment or as promptly thereafter as practicable, surrender its Notes, if
any, to Administrative Agent for cancellation, and thereupon new Notes shall,
if so requested by the assignee and/or the assigning Lender in accordance with
subsection 2.1E, be issued to the assignee and/or to the assigning Lender,
substantially in the form of Exhibit IV, Exhibit V or Exhibit
VII annexed hereto, as the case may be, with appropriate insertions, to
reflect the new Commitments and/or outstanding Term Loans, Revolving Loans or
Synthetic Letter of Credit Loans, as the case may be, of the assignee and/or
the assigning Lender.  Without the
consent of Administrative Agent, the Credit-Linked Deposit funded by any
Synthetic Letter of Credit Lender shall not be released in connection with any
assignment of its Synthetic Letter of Credit Commitment, but shall instead be
purchased by the relevant assignee and continue to be held for application (if
not already applied) pursuant to subsections 3.3B(ii) and 3.3C(i)(b) in
respect of such

 

138

assignee’s obligations
under the Synthetic Letter of Credit Commitment assigned to it.  Other
than as provided in subsection 2.1A(ii) and subsection 10.5, any
assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this subsection 10.1B shall be treated
for purposes of this Agreement as a sale by such Lender of a participation in
such rights and obligations in accordance with subsection 10.1C.

(ii)           Acceptance by Administrative
Agent; Recordation in Register.  Upon
its receipt of an Assignment Agreement executed by an assigning Lender and an
assignee representing that it is an Eligible Assignee, together with the
processing and recordation fee referred to in subsection 10.1B(i) (if
applicable) and any forms, certificates or other evidence with respect to
United States federal income tax withholding matters that such assignee may be
required to deliver to Administrative Agent pursuant to
subsection 2.7B(iii), Administrative Agent shall, if Administrative Agent
has consented to the assignment evidenced thereby (to the extent such consent
is required pursuant to subsection 10.1B(i)), (a) accept such
Assignment Agreement by executing a counterpart thereof as provided therein
(which acceptance shall evidence any required consent of Administrative Agent
to such assignment) and (b) record the information contained therein in
the Register.  Administrative Agent shall
maintain a copy of each Assignment Agreement delivered to and accepted by it as
provided in this subsection 10.1B(ii).

(iii)          Special Purpose Funding Vehicles.  Notwithstanding anything to the contrary
contained in this subsection 10.1B, any Lender (a “Granting Lender”) may grant to a special purpose funding
vehicle (a “SPC”), identified as
such in writing from time to time by the Granting Lender to Administrative
Agent, the option to provide to Borrower all or any part of any Loan that such
Granting Lender would otherwise be obligated to make to Borrower; provided
that (i) nothing herein shall constitute a commitment by any SPC to make any
Loan and (ii) if an SPC elects not to exercise such option or otherwise fails
to provide all or any part of such Loan, the Granting Lender shall be obligated
to make such Loan.  The making of a
Supplemental Term Loan, Synthetic Letter of Credit Loan or Revolving Loan by an
SPC hereunder shall utilize the Supplemental Term Loan Commitment, Synthetic
Letter of Credit Commitment or Revolving Loan Commitment, as applicable, of the
Granting Lender to the same extent, and as if, such Loan were made by such
Granting Lender.  Each party hereto
hereby agrees that no SPC shall be liable for any indemnity or similar payment
obligation under this Agreement (all liability for which shall remain with the
Granting Lender).  In furtherance of the
foregoing, each party hereto hereby agrees (which agreement shall survive the
termination of this Agreement) that, prior to the date that is one year and one
day after the payment in full of all outstanding commercial paper or other
senior indebtedness of any SPC, it will not institute against, or join any
other person in instituting against, such SPC any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under the laws of the United
States or any State thereof.  In
addition, notwithstanding anything to the contrary contained in this subsection
10.1, any SPC may (i) with notice to, but without the prior written consent of,
Administrative Agent and without paying any processing fee therefor, assign all
or a portion of its

 

139

interests in any Loan to
the Granting Lender or to any financial institutions (consented to by Administrative
Agent) providing liquidity and/or credit support to or for the account of such
SPC to support the funding or maintenance of any Loans and (ii) disclose on a
confidential basis any non-public information relating to its Loans to any
rating agency, commercial paper dealer or provider of any surety, guarantee or
credit or liquidity enhancement to such SPC. 
This section may not be amended without the written consent of each SPC.

C.    Participations.  Any Lender may, without the consent of, or
notice to, Borrower or Administrative Agent, sell participations to one or more
Persons (other than a natural Person or Borrower or any of its Affiliates) in
all or a portion of such Lender’s rights and/or obligations under this
Agreement; provided that (i) such Lender’s obligations under this
Agreement shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (iii) Borrower, Administrative Agent and Lenders shall continue to
deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under this Agreement. 
Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; provided that such agreement or
instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver directly affecting
(i) the extension of the regularly scheduled maturity of any portion of
the principal amount of or interest on any Loan allocated to such participation
or (ii) a reduction of the principal amount of or the rate of interest
payable on any Loan allocated to such participation.  Subject to the further provisions of this
subsection 10.1C, Borrower agrees that each Participant shall be entitled
to the benefits of subsections 2.6D and 2.7 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to
subsection 10.1B.  To the extent
permitted by law, each Participant also shall be entitled to the benefits of
subsection 10.4 as though it were a Lender, provided such
Participant agrees to be subject to subsection 10.5 as though it were a
Lender.  A Participant shall not be
entitled to receive any greater payment under subsections 2.6D and 2.7 than the
applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant unless the sale of the participation to
such Participant is made with Borrower’s prior written consent.  A Participant that would be a Non-US Lender
if it were a Lender shall not be entitled to the benefits of
subsection 2.7 unless Borrower is notified of the participation sold to
such Participant and such Participant agrees, for the benefit of Borrower, to
comply with subsection 2.7B(iii) as though it were a Lender.  Each Lender that sells a participation in any
Loan, Commitment or other interest to a Participant shall, as agent of Borrower
solely for the purpose of this Section 10.1C, record in book entries maintained
by such Lender the name and amount of the participating interest of each
Participant entitled to receive payments in respect of such participating
interest.

D.    Pledges and
Assignments.  Any Lender may at
any time pledge or assign a security interest in all or any portion of its
Loans, and the other Obligations owed to such Lender, to secure obligations of
such Lender, including without limitation any pledge or assignment to secure
obligations to any Federal Reserve Bank; provided that (i) no
Lender shall be relieved of any of its obligations hereunder as a result of any
such assignment or pledge and

 

140

(ii) in no event shall any
assignee or pledgee be considered to be a “Lender” or be entitled to require
the assigning Lender to take or omit to take any action hereunder.

E.     Information.  Each Lender may furnish any information
concerning Parent and its Subsidiaries in the possession of that Lender from
time to time to assignees and participants (including prospective assignees and
participants), subject to subsection 10.19.

F.     Agreements
of Lenders.  Each Lender listed
on the signature pages hereof hereby agrees (i) that it is an Eligible
Assignee described in clause (ii) of the definition thereof;
(ii) that it has experience and expertise in the making of loans such as
the Loans; and (iii) that it will make its Loans for its own account in
the ordinary course of its business and without a view to distribution of such
Loans within the meaning of the Securities Act or the Exchange Act or other
federal securities laws (it being understood that, subject to the provisions of
this subsection 10.1, the disposition of such Loans or any interests
therein shall at all times remain within its exclusive control).  By executing and delivering an Assignment
Agreement, the assigning Lender thereunder and the assignee thereunder shall be
deemed to confirm to and agree with each other and the other parties hereto as
follows:  (i) such assigning Lender warrants that it is the
legal and beneficial owner of the interest being assigned thereby free and
clear of any adverse claim and that its Commitment and the outstanding balances
of its Loans, in each case without giving effect to assignments thereof which
have not become effective, are as set forth in such Assignment Agreement,
(ii) except as set forth in clause (i) above, such assigning Lender
makes no representation or warranty and assumes no responsibility with respect
to any statements, warranties or representations made in or in connection with
this Agreement, or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Agreement, any other Loan Document or
any other instrument or document furnished pursuant hereto, or the financial
condition of Borrower or any of its Subsidiaries or the performance or
observance by Borrower or any of its Subsidiaries of any of its obligations
under this Agreement, any other Loan Document or any other instrument or
document furnished pursuant hereto, (iii) such assignee represents and
warrants that it is legally authorized to enter into such Assignment Agreement,
(iv) such assignee confirms that it has received a copy of this Agreement,
together with copies of the most recent financial statements referred to in
subsection 5.3 or delivered pursuant to subsection 6.1 and such other documents
and information as it has deemed appropriate to make its own credit analysis
and decision to enter into such Assignment Agreement, (v) such assignee
will independently and without reliance upon Administrative Agent, Collateral
Agent, such assigning Lender or any other Lender and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own credit decisions in taking or not taking action under this Agreement, (vi)
such assignee appoints and authorizes Administrative Agent and Collateral Agent
to take such action as agent on its behalf and to exercise such powers under
this Agreement as are delegated to Administrative Agent and Collateral Agent,
respectively, by the terms hereof, together with such powers as are reasonably
incidental thereto, and (vii) such assignee agrees that it will perform in
accordance with their terms all the obligations which by the terms of this
Agreement are required to be performed by it as a Lender.

 

141

10.2                        Expenses.

Whether or not the
transactions contemplated hereby shall be consummated, Borrower agrees to pay
promptly (i) all reasonable costs and expenses of negotiation, preparation
and execution of the Loan Documents and any consents, amendments, waivers or other
modifications thereto; (ii) all costs and expenses of furnishing all
opinions by counsel for Borrower (including any opinions requested by Agents or
Lenders as to any legal matters arising hereunder) and of each Loan Party’s
performance of and compliance with all agreements and conditions on its part to
be performed or complied with under this Agreement and the other Loan Documents
including with respect to confirming compliance with environmental, insurance
and solvency requirements; (iii) all reasonable fees, expenses and
disbursements of counsel to Administrative Agent (including allocated costs of
internal counsel) in connection with the negotiation, preparation, execution
and administration of the Loan Documents and any consents, amendments, waivers
or other modifications thereto and any other documents or matters requested by
Borrower; (iv) all costs and expenses of creating and perfecting Liens in
favor of Administrative Agent on behalf of Lenders pursuant to any Collateral
Document, including filing and recording fees, expenses and taxes, stamp or
documentary taxes, search fees, title insurance premiums, and reasonable fees,
expenses and disbursements of counsel to Administrative Agent and of counsel
providing any opinions that Administrative Agent or Requisite Lenders may
request in respect of the Collateral Documents or the Liens created pursuant
thereto; (v) all costs and expenses (including the reasonable fees,
expenses and disbursements of any auditors, accountants or appraisers and any
environmental or other consultants, advisors and agents employed or retained by
Administrative Agent or its counsel) of obtaining and reviewing any appraisals
provided for under subsection 6.9B and any environmental audits or reports
provided for under subsection 6.9A; (vi) all costs and expenses
incurred by Administrative Agent in connection with the custody or preservation
of any of the Collateral; (vii) all other costs and expenses incurred by
Administrative Agent in connection with the syndication of the  Commitments; (viii) all costs and expenses,
including reasonable attorneys’ fees (including reasonable allocated costs of
internal counsel) and fees, costs and expenses of accountants, advisors and
consultants, incurred by Administrative Agent and its counsel relating to
efforts to (a) evaluate or assess any Loan Party, its business or
financial condition and (b) protect, evaluate, assess or dispose of any of the
Collateral; and (ix) all costs and expenses, including reasonable attorneys’
fees (including reasonable allocated costs of internal counsel), reasonable
fees, costs and expenses of accountants, advisors and consultants and costs of
settlement, incurred by Administrative Agent and Lenders in enforcing any
Obligations of or in collecting any payments due from any Loan Party hereunder
or under the other Loan Documents (including in connection with the sale of,
collection from, or other realization upon any of the Collateral or the
enforcement of the Loan Documents) or in connection with any refinancing or
restructuring of the credit arrangements provided under this Agreement in the
nature of a “work-out” or pursuant to any insolvency or bankruptcy proceedings.

10.3                        Indemnity.

In addition to the
payment of expenses pursuant to subsection 10.2, whether or not the
transactions contemplated hereby shall be consummated, Borrower agrees to
defend (subject to Indemnitees’ selection of counsel), indemnify, pay and hold
harmless Agents and

 

142

Lenders (including
Issuing Lenders), and the officers, directors (or, if applicable, trustees
and/or advisors), employees, agents and Affiliates of Agents and Lenders
(collectively called the “Indemnitees”),
from and against any and all Indemnified Liabilities (as hereinafter defined); provided
that Borrower shall not have any obligation to any Indemnitee hereunder with
respect to any Indemnified Liabilities to the extent such Indemnified
Liabilities arise from the gross negligence or willful misconduct of that
Indemnitee as determined by a final judgment of a court of competent
jurisdiction.

As used herein, “Indemnified Liabilities” means, collectively, any and all
liabilities, obligations, losses, damages (including natural resource damages),
penalties, actions, judgments, suits, claims (including Environmental Claims),
costs (including the reasonable costs of any investigation, study, sampling,
testing, abatement, cleanup, removal, remediation or other response action
necessary to remove, remediate, clean up or abate any Hazardous Materials
Activity), expenses and disbursements of any kind or nature whatsoever
(including the reasonable fees and disbursements of counsel for Indemnitees in
connection with any investigative, administrative or judicial proceeding
commenced or threatened by any Person, whether or not any such Indemnitee shall
be designated as a party or a potential party thereto, and any fees or expenses
incurred by Indemnitees in enforcing this indemnity), whether direct, indirect
or consequential and whether based on any federal, state or foreign laws,
statutes, rules or regulations (including securities and commercial laws,
statutes, rules or regulations and Environmental Laws), on common law or
equitable cause or on contract or otherwise, that may be imposed on, incurred
by, or asserted against any such Indemnitee, in any manner relating to or
arising out of (i) this Agreement or the other Loan Documents or the
transactions contemplated hereby or thereby (including Lenders’ agreement to
make the Loans hereunder or the use or intended use of the proceeds thereof or
the issuance of Letters of Credit hereunder or the use or intended use of any
thereof, the failure of an Issuing Lender to honor a drawing under a Letter of
Credit as a result of any act or omission, whether rightful or wrongful, of any
present or future de jure or de facto Government Authority, or any enforcement
of any of the Loan Documents (including any sale of, collection from, or other
realization upon any of the Collateral or the enforcement of the Guaranties),
but not including any amounts with respect to Taxes (which are addressed
exclusively in subsection 2.7B), (ii) the statements contained in the
commitment letter delivered by any Lender to Borrower with respect thereto, or
(iii) any Environmental Claim or any Hazardous Materials Activity relating
to or arising from, directly or indirectly, any past or present activity,
operation, land ownership, or practice of any Loan Party.

To the extent that the
undertakings to defend, indemnify, pay and hold harmless set forth in this
subsection 10.3 may be unenforceable in whole or in part because they are
violative of any law or public policy, Borrower shall contribute the maximum
portion that it is permitted to pay and satisfy under applicable law to the payment
and satisfaction of all Indemnified Liabilities incurred by Indemnitees or any
of them.

10.4                        Set-Off; Security Interest
in Deposit Accounts.

In addition to any rights
now or hereafter granted under applicable law and not by way of limitation of
any such rights, upon the occurrence of any Event of Default each Lender is
hereby authorized by Borrower at any time or from time to time, without notice
to Borrower or

 

143

to any other
Person, any such notice being hereby expressly waived, to set off and to
appropriate and to apply any and all deposits (general or special, time or
demand, provisional or final, including Indebtedness evidenced by certificates
of deposit, whether matured or unmatured, but not including trust accounts) and
any other Indebtedness at any time held or owing by that Lender or any
Affiliate of that Lender to or for the credit or the account of Borrower and
each other Loan Party against and on account of the Obligations of Borrower or any
other Loan Party to that Lender (or any Affiliate of that Lender) or to any
other Lender (or any Affiliate of any other Lender) under this Agreement, the
Letters of Credit and participations therein and the other Loan Documents,
including all claims of any nature or description arising out of or connected
with this Agreement, the Letters of Credit and participations therein or any
other Loan Document, irrespective of whether or not (i) that Lender shall
have made any demand hereunder or (ii) the principal of or the interest on
the Loans or any amounts in respect of the Letters of Credit or any other
amounts due hereunder shall have become due and payable pursuant to
Section 8 and although said obligations and liabilities, or any of them,
may be contingent or unmatured.  Borrower
hereby further grants to Administrative Agent and each Lender a security
interest in all deposits and accounts maintained with Administrative Agent or
such Lender as security for the Obligations.

10.5                        Ratable Sharing.

Lenders hereby agree
among themselves that if any of them shall, whether by voluntary payment (other
than a voluntary prepayment of Loans made and applied in accordance with the
terms of this Agreement), by realization upon security, through the exercise of
any right of set-off or banker’s lien, by counterclaim or cross action or by
the enforcement of any right under the Loan Documents or otherwise, or as
adequate protection of a deposit treated as cash collateral under the
Bankruptcy Code, receive payment or reduction of a proportion of the aggregate
amount of principal, interest, amounts payable in respect of Letters of Credit,
fees and other amounts then due and owing to that Lender hereunder or under the
other Loan Documents (collectively, the “Aggregate Amounts Due”
to such Lender) that is greater than the proportion received by any other
Lender in respect of the Aggregate Amounts Due to such other Lender, then the
Lender receiving such proportionately greater payment shall (i) notify
Administrative Agent and each other Lender of the receipt of such payment and
(ii) apply a portion of such payment to purchase assignments (which it
shall be deemed to have purchased from each seller of an assignment
simultaneously upon the receipt by such seller of its portion of such payment)
of the Aggregate Amounts Due to the other Lenders so that all such recoveries
of Aggregate Amounts Due shall be shared by all Lenders in proportion to the
Aggregate Amounts Due to them; provided that if all or part of such
proportionately greater payment received by such purchasing Lender is
thereafter recovered from such Lender upon the bankruptcy or reorganization of
Borrower or otherwise, those purchases shall be rescinded and the purchase
prices paid for such assignments shall be returned to such purchasing Lender
ratably to the extent of such recovery, but without interest.  Borrower expressly consents to the foregoing
arrangement and agrees that any purchaser of an assignment so purchased may
exercise any and all rights of a Lender as to such assignment as fully as if
that Lender had complied with the provisions of subsection 10.1B with
respect to such assignment.  In order to
further evidence such assignment (and without prejudice to the effectiveness of
the assignment provisions set

 

144

forth above), each
purchasing Lender and each selling Lender agree to enter into an Assignment
Agreement at the request of a selling Lender or a purchasing Lender, as the
case may be, in form and substance reasonably satisfactory to each such Lender.

10.6                        Amendments and Waivers.

No amendment,
modification, termination or waiver of any provision of this Agreement or of
the Notes, and no consent to any departure by Borrower therefrom, shall in any
event be effective without the written concurrence of Requisite Lenders; provided
that no such amendment, modification, termination, waiver or consent shall,
without the consent of (a) each Lender with Obligations directly affected
(whose consent shall be sufficient for any such amendment, modification,
termination or waiver without the consent of Requisite Lenders) (1) reduce
the principal amount of any Loan, (2) postpone the scheduled final
maturity date or any scheduled principal payment of any Loan, (3) postpone
the date on which any interest or any fees are payable, (4) decrease the
interest rate borne by any Loan (other than any waiver of any increase in the
interest rate applicable to any of the Loans pursuant to subsection 2.2E)
or the amount of any fees payable hereunder, (5) reduce the amount or
postpone the due date of any amount payable in respect of any Letter of Credit,
(6) extend the expiration date of any Revolving Letter of Credit beyond
the Revolving Loan Commitment Termination Date, (7) extend the expiration
date of any Synthetic Letter of Credit beyond the Synthetic Letter of Credit
Facility Maturity Date, (8) change in any manner the obligations of
(x) Revolving Lenders relating to the purchase of participations in
Revolving Letters of Credit or (y) Synthetic Letter of Credit Lenders
relating to the purchase of participations in Synthetic Letters of Credit, or
(9) increase the amount of any of the Commitments; (b) each Lender,
(1) change in any manner the definition of “Class” or the definition of “Pro
Rata Share” or the definition of “Requisite Class Lenders” or the definition of
“Requisite Lenders” (except for any changes resulting solely from an increase
in Commitments approved by Requisite Lenders or the addition of a class of
loans under this Agreement approved by Requisite Lenders), (2) change in
any manner any provision of this Agreement that, by its terms, expressly
requires the approval or concurrence of all Lenders, (3) increase the
maximum duration of Interest Periods permitted hereunder, (4) release any
Lien granted in favor of Administrative Agent with respect to all or
substantially all of the Collateral or release Parent from its obligations under the Parent Guaranty or release
any Subsidiary Guarantor from its obligations under the Subsidiary Guaranty, in
each case other than in accordance with the terms of the Loan Documents or (5) change in any manner or waive
the provisions contained in subsection 8.1 or this
subsection 10.6.  In addition,
(i) any amendment, modification, termination or waiver of any of the
provisions contained in Section 4 shall be effective only if evidenced by
a writing signed by or on behalf of Administrative Agent and Requisite Lenders,
(ii) no amendment, modification, termination or waiver of any provision of
any Note shall be effective without the written concurrence of the Lender which
is the holder of that Note, (iii) no amendment, modification, termination
or waiver of any provision of subsection 2.1A(ii) or of any other
provision of this Agreement relating to the Swing Line Loan Commitment or the
Swing Line Loans shall be effective without the written concurrence of Swing
Line Lender, (iv) no amendment, modification, termination or waiver of any
provision of Section 3 shall be effective without the written concurrence
of Administrative Agent and, with respect to the purchase of participations in
Letters of Credit, without the written concurrence of

 

145

each Issuing
Lender that has issued an outstanding Letter of Credit or has not been
reimbursed for a payment under a Letter of Credit, and (v) no amendment,
modification, termination or waiver of any provision of Section 9 or of
any other provision of this Agreement which, by its terms, expressly requires
the approval or concurrence of Administrative Agent (and, as applicable, any
other Agent) shall be effective without the written concurrence of
Administrative Agent (and, as applicable such other Agent), and (vi) no amendment, modification,
termination or waiver of any provision of subsection 2.4 that has the
effect of changing any voluntary or mandatory prepayments, or Commitment
reductions applicable to a Class in a manner that disproportionately
disadvantages such Class relative to any other Class shall be effective without
the written concurrence of Requisite Class Lenders of such affected Class (it
being understood and agreed that any amendment, modification, termination or
waiver of any such provision which only postpones or reduces any voluntary
or mandatory prepayment, or Commitment reduction from those set forth in
subsection 2.4 with respect to one Class but not any other Class shall be
deemed to disproportionately disadvantage such one Class but not to
disproportionately disadvantage any such other Class for purposes of this
clause (vi)).  Administrative
Agent may, but shall have no obligation to, with the concurrence of any Lender,
execute amendments, modifications, waivers or consents on behalf of that
Lender.  Any waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
it was given.  No notice to or demand on
Borrower in any case shall entitle Borrower to any other or further notice or
demand in similar or other circumstances. 
Any amendment, modification, termination, waiver or consent effected in
accordance with this subsection 10.6 shall be binding upon each Lender at
the time outstanding, each future Lender and, if signed by Borrower, on
Borrower.

10.7                        Independence of Covenants.

All covenants hereunder
shall be given independent effect so that if a particular action or condition
is not permitted by any of such covenants, the fact that it would be permitted
by an exception to, or would otherwise be within the limitations of, another
covenant shall not avoid the occurrence of an Event of Default or Potential
Event of Default if such action is taken or condition exists.

10.8                        Notices; Effectiveness of
Signatures.

Unless otherwise
specifically provided herein, any notice or other communication herein required
or permitted to be given shall be in writing and may be personally served, or
sent by telefacsimile or United States mail or courier service and shall be
deemed to have been given when delivered in person or by courier service, upon
receipt of telefacsimile in complete and legible form, or three (3) Business
Days after depositing it in the United States mail with postage prepaid and
properly addressed; provided that notices to Administrative Agent, Swing
Line Lender and any Issuing Lender shall not be effective until received.  For the purposes hereof, the address of each
party hereto shall be as set forth under such party’s name on the signature
pages to the Existing Credit Agreement or (i) as to Borrower and
Administrative Agent, such other address as shall be designated by such Person
in a written notice delivered to the other parties hereto and (ii) as to
each other party, such other address as shall be designated by such party in
written notice delivered to Administrative Agent.  Electronic mail and Internet and intranet
websites may be used to distribute routine communications, such as financial
statements and

 

146

other information;
provided, however, that no signature with respect to any notice,
request, agreement, waiver, amendment or other document or any notice that is
intended to have binding effect may be sent by electronic mail (other than an
electronic mail attachment in “PDF” (or other comparable) format).

Loan Documents and
notices under the Loan Documents may be transmitted and/or signed by
telefacsimile.  The effectiveness of any
such documents and signatures shall, subject to applicable law, have the same
force and effect as an original copy with manual signatures and shall be
binding on all Loan Parties, Agents and Lenders.  Administrative Agent may also require that
any such documents and signature be confirmed by a manually-signed copy
thereof; provided, however, that the failure to request or
deliver any such manually-signed copy shall not affect the effectiveness of any
facsimile document or signature.

10.9                        Survival of
Representations, Warranties and Agreements.

A.            All representations, warranties and
agreements made herein shall survive the execution and delivery of this Agreement
and the making of the Loans and the issuance of the Letters of Credit
hereunder.

B.    Notwithstanding
anything in this Agreement or implied by law to the contrary, the agreements of
Borrower set forth in subsections 2.6D, 2.7, 10.2, 10.3, 10.4, 10.17 and 10.18
and the agreements of Lenders set forth in subsections 9.2C, 9.4, 10.5 and
10.18 shall survive the payment of the Loans, the cancellation or expiration of
the Letters of Credit and the reimbursement of any amounts drawn thereunder,
and the termination of this Agreement.

10.10                 Failure or Indulgence Not
Waiver; Remedies Cumulative.

No failure or delay on
the part of an Agent or any Lender in the exercise of any power, right or
privilege hereunder or under any other Loan Document shall impair such power,
right or privilege or be construed to be a waiver of any default or
acquiescence therein, nor shall any single or partial exercise of any such
power, right or privilege preclude other or further exercise thereof or of any
other power, right or privilege.  All
rights and remedies existing under this Agreement and the other Loan Documents
are cumulative to, and not exclusive of, any rights or remedies otherwise
available.

10.11                 Marshalling; Payments Set
Aside.

Neither any Agent nor any
Lender shall be under any obligation to marshal any assets in favor of Borrower
or any other party or against or in payment of any or all of the
Obligations.  To the extent that Borrower
makes a payment or payments to Administrative Agent or Lenders (or to Administrative
Agent for the benefit of Lenders), or Agents or Lenders enforce any security
interests or exercise their rights of setoff, and such payment or payments or
the proceeds of such enforcement or setoff or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside and/or
required to be repaid to a trustee, receiver or any other party under any
bankruptcy law, any other state or federal law, common law or any equitable
cause, then, to the extent of such recovery, the obligation or part thereof
originally

 

147

intended to be
satisfied, and all Liens, rights and remedies therefor or related thereto,
shall be revived and continued in full force and effect as if such payment or
payments had not been made or such enforcement or setoff had not occurred.

10.12                 Severability.

In case any provision in
or obligation under this Agreement or the Notes shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of
the remaining provisions or obligations, or of such provision or obligation in
any other jurisdiction, shall not in any way be affected or impaired thereby.

10.13                 Obligations Several;
Independent Nature of Lenders’ Rights; Damage Waiver.

The obligations of
Lenders hereunder are several and no Lender shall be responsible for the
obligations or Commitments of any other Lender hereunder.  Nothing contained herein or in any other Loan
Document, and no action taken by Lenders pursuant hereto or thereto, shall be
deemed to constitute Lenders, or Lenders and Borrower, as a partnership, an
association, a Joint Venture or any other kind of entity. The amounts payable
at any time hereunder to each Lender shall be a separate and independent debt,
and each Lender shall be entitled to protect and enforce its rights arising out
of this Agreement and it shall not be necessary for any other Lender to be
joined as an additional party in any proceeding for such purpose.

To the extent permitted
by law, each Loan Party shall not assert, and hereby waives, any claim against
any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with or as a result of this Agreement (including,
without limitation, subsection 2.1C hereof), any other Loan Document, any
transaction contemplated by the Loan Documents, any Loan or the use of proceeds
thereof.

10.14                 Release of Security
Interest or Guaranty.

Upon the proposed sale or
other disposition of any Collateral that is permitted by this Agreement or to
which Requisite Lenders have otherwise consented, or the sale or other
disposition of all of the Capital Stock of a Subsidiary Guarantor to any Person
(other than an Affiliate of Borrower) permitted by this Agreement or to which
Requisite Lenders have otherwise consented, for which a Loan Party desires to
obtain a security interest release or a release of the Subsidiary Guaranty from
Administrative Agent, such Loan Party shall deliver an Officer’s Certificate
(i) stating that the Collateral or the Capital Stock subject to such
disposition is being sold or otherwise disposed of in compliance with the terms
hereof and (ii) specifying the Collateral or Capital Stock being sold or
otherwise disposed of in the proposed transaction.  Upon the receipt of such Officer’s
Certificate, Administrative Agent shall, at such Loan Party’s expense, so long
as Administrative Agent (a) has no reason to believe that the facts stated
in such Officer’s Certificate are not true and correct and (b), if the sale or
other disposition of such item of Collateral or Capital Stock constitutes an
Asset Sale, shall have received evidence satisfactory

 

148

to it that
arrangements satisfactory to it have been made for delivery of the Net Asset
Sale Proceeds if and as required by subsection 2.4, execute and deliver
such releases of its security interest in such Collateral or such Subsidiary
Guaranty, as may be reasonably requested by such Loan Party.

10.15                 Applicable Law.

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

10.16                 Construction of Agreement;
Nature of Relationship.

Each of the parties
hereto acknowledges that (i) it has been represented by counsel in the
negotiation and documentation of the terms of this Agreement, (ii) it has
had full and fair opportunity to review and revise the terms of this Agreement,
(iii) this Agreement has been drafted jointly by all of the parties
hereto, and (iv) neither Administrative Agent nor any Lender or other Agent has
any fiduciary relationship with or duty to Borrower arising out of or in
connection with this Agreement or any of the other Loan Documents, and the
relationship between Administrative Agent, the other Agents and Lenders, on one
hand, and Borrower, on the other hand, in connection herewith or therewith is
solely that of debtor and creditor. 
Accordingly, each of the parties hereto acknowledges and agrees that the
terms of this Agreement shall not be construed against or in favor of another
party.

10.17                 Consent to Jurisdiction
and Service of Process.

ALL
JUDICIAL PROCEEDINGS BROUGHT AGAINST BORROWER ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY OBLIGATIONS THEREUNDER, MAY
BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE
STATE, COUNTY AND CITY OF NEW YORK.  BY
EXECUTING AND DELIVERING THIS AGREEMENT, BORROWER, FOR ITSELF AND IN CONNECTION
WITH ITS PROPERTIES, IRREVOCABLY

(I)            ACCEPTS GENERALLY AND
UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS;

(II)           WAIVES ANY DEFENSE OF FORUM NON CONVENIENS;

(III)         AGREES THAT SERVICE OF ALL PROCESS IN
ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED
MAIL, RETURN RECEIPT REQUESTED, TO BORROWER AT ITS ADDRESS PROVIDED IN
ACCORDANCE WITH SUBSECTION 10.8;

 

149

(IV)         AGREES THAT SERVICE AS PROVIDED IN
CLAUSE (III) ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER
BORROWER IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES
EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT;

(V)          AGREES THAT LENDERS RETAIN THE RIGHT
TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS
AGAINST BORROWER IN THE COURTS OF ANY OTHER JURISDICTION; AND

(VI)         AGREES THAT THE PROVISIONS OF THIS
SUBSECTION 10.17 RELATING TO JURISDICTION AND VENUE SHALL BE BINDING AND
ENFORCEABLE TO THE FULLEST EXTENT PERMISSIBLE UNDER NEW YORK GENERAL
OBLIGATIONS LAW SECTION 5-1402 OR OTHERWISE.

10.18                 Waiver of Jury Trial.

EACH OF
THE PARTIES TO THIS AGREEMENT HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A
JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR ANY DEALINGS BETWEEN THEM
RELATING TO THE SUBJECT MATTER OF THIS LOAN TRANSACTION OR THE LENDER/BORROWER
RELATIONSHIP THAT IS BEING ESTABLISHED.  The scope of
this waiver is intended to be all-encompassing of any and all disputes that may
be filed in any court and that relate to the subject matter of this
transaction, including contract claims, tort claims, breach of duty claims and
all other common law and statutory claims. 
Each party hereto acknowledges that this waiver is a material inducement
to enter into a business relationship, that each has already relied on this
waiver in entering into this Agreement, and that each will continue to rely on
this waiver in their related future dealings. 
Each party hereto further warrants and represents that it has reviewed
this waiver with its legal counsel and that it knowingly and voluntarily waives
its jury trial rights following consultation with legal counsel.  THIS WAIVER
IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING
(OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS
SUBSECTION 10.18 AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER
SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR TO ANY
OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS MADE HEREUNDER.  In the event of litigation, this Agreement
may be filed as a written consent to a trial by the court.

10.19                 Confidentiality.

Each Lender shall hold
all non-public information obtained pursuant to the requirements of this
Agreement in accordance with such Lender’s customary procedures for

 

150

handling
confidential information of this nature, it being understood and agreed by
Borrower that in any event a Lender may make disclosures (a) to its
and its Affiliates’ directors, officers, employees, trustees and agents,
including accountants, legal counsel and other advisors (it being understood
that the Persons to whom such disclosure is made will be informed of the
confidential nature of such information and instructed to keep such information
confidential), (b) to the extent requested by any Government Authority (provided
that such Lender shall notify Borrower of any request by any Government
Authority), (c) to the extent required by applicable laws or regulations
or by any subpoena or similar legal process, (d) to any other party to
this Agreement, (e) in connection with the exercise of any remedies
hereunder or any suit, action or proceeding relating to this Agreement or the
enforcement of rights hereunder, (f) subject to an agreement containing
provisions substantially the same as those of this subsection 10.19, to
(i) any Eligible Assignee of or participant in, or any prospective
Eligible Assignee of or Participant in, any of its rights or obligations under
this Agreement, (ii) any pledgee referred to in subsection 10.1D or
(iii) any direct or indirect contractual counterparty or prospective
counterparty (or such contractual counterparty’s or prospective counterparty’s
professional advisor) to any credit derivative transaction relating to
obligations of Borrower, (g) with the consent of Borrower, (h) to the
extent such information (i) becomes publicly available other than as a
result of a breach of this subsection 10.19 or (ii) becomes available
to Administrative Agent or any Lender on a nonconfidential basis from a source
other than Borrower or (i) to the National Association of Insurance
Commissioners or any other similar organization or any nationally recognized
rating agency that requires access to information about a Lender’s or its
Affiliates’ investment portfolio in connection with ratings issued with respect
to such Lender or its Affiliates and that no written or oral communications
from counsel to an Agent and no information that is or is designated as
privileged or as attorney work product may be disclosed to any Person unless
such Person is a Lender or a participant hereunder; provided that,
unless specifically prohibited by applicable law or court order, each Lender
shall notify Borrower of any request by any Government Authority or
representative thereof (other than any such request in connection with any
examination of the financial condition of such Lender by such Government
Authority) for disclosure of any such non-public information prior to
disclosure of such information; and provided, further, that in no
event shall any Lender be obligated or required to return any materials
furnished by Borrower or any of its Subsidiaries.  In addition, Administrative Agent and Lenders
may disclose the existence of this Agreement and information about this Agreement
to market data collectors, similar service providers to the lending industry,
and service providers to Administrative Agent and Lenders.

10.20                 Counterparts;
Effectiveness.

This Agreement and any
amendments, waivers, consents or supplements hereto or in connection herewith
may be executed in any number of counterparts and by different parties hereto
in separate counterparts, each of which when so executed and delivered shall be
deemed an original, but all such counterparts together shall constitute but one
and the same instrument; signature pages may be detached from multiple separate
counterparts and attached to a single counterpart so that all signature pages
are physically attached to the same document. 
This Agreement shall become effective as provided for in the Amendment
Agreement.

 

151

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]