Document:

Security Agreement

    EXHIBIT
      10.11

     

     

    SECURITY
      AGREEMENT

     

    made
      by

     

    PRC
      WILLISTON LLC

     

    in
      favor of

     

    D.B.
      ZWIRN SPECIAL OPPORTUNITIES FUND, L.P.

     

    as
      Administrative Agent

     

    Dated
      as of February 16, 2007

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF CONTENTS

     

    Page

     

    ARTICLE
      I

    DEFINITIONS;
      TERMS GENERALLY

     

    
      	Section 1.01	Definitions	
              1

            
	Section 1.02	Terms Generally; Rules of
              Construction	
              3

            

    

       

    ARTICLE
      II

    GRANT
      OF
      SECURITY INTEREST

    
       

      
        	Section 2.01	Grant of Security Interest	
                3

              
	Section 2.02	Authorization to File Financing
                Statements	
                4

              
	Section 2.03	Other Actions	
                4

              

      

         

    

    ARTICLE
      III

    REPRESENTATIONS
      AND WARRANTIES

    
       

      
        	Section 3.01	Debtor’s Legal Status	
                6

              
	Section 3.02	Concerning Collateral, Etc.	
                7

              
	Section 3.03	Perfected First Priority Liens	
                7

              

      

    

     

    ARTICLE
      IV

    COVENANTS

    
      
         

        
          	Section 4.01	Debtor’s Legal Status	
                  8

                
	Section 4.02	Concerning Collateral, Etc.	
                  8

                
	Section 4.03	Further Assurances	
                  9

                

        

      

    

     

    ARTICLE
      V

    RIGHTS
      AND REMEDIES

    
      
         

        
          	Section 5.01	Rights and Remedies	
                  10

                
	Section 5.02	Securities and Deposits	
                  12

                
	Section 5.03	Notification to Account Debtors
                  and Other
                  Persons Obligated on Collateral	
                  12

                
	Section 5.04	Standards for Exercising Rights
                  and
                  Remedies	
                  12

                
	Section 5.05	No Retention in Satisfaction	
                  13

                
	Section 5.06	Performance by Administrative Agent	
                  13

                
	Section 5.07	Administrative Agent’s Appointment as
                  Attorney-in-Fact, Etc.	
                  14

                
	Section 5.08	Waiver	
                  15

                
	Section 5.09	No Release	
                  16

                
	Section 5.10	Duty of Administrative Agent	
                  17

                
	Section 5.11	Payment of Expenses, Indemnities,
                  Etc.	
                  18

                
	Section 5.12	Overdue Amounts	
                  19

                

        

      

    

     

    ARTICLE
      VI

    MISCELLANEOUS

     

    
      
        
          	Section 6.01	Notices	
                  19

                
	Section 6.02	Amendments	
                  19

                
	Section 6.03	No Waiver	
                  19

                
	Section 6.04	Remedies Cumulative: Non-Exclusive;
                  Etc	
                  19

                
	Section 6.05	Successors and Assigns	
                  20

                
	Section 6.06	Severability	
                  
                    20

                  

                
	Section 6.07	Survival; Revival; Restatement	
                  
                    20

                  

                
	Section 6.08	Counterparts	
                  21

                
	Section 6.09	Acknowledgments	
                  
                    21

                  

                
	Section 6.10	GOVERNING LAW; CONSENT TO
                  JURISDICTION	
                  
                    21

                  

                
	Section 6.11	ENTIRE AGREEMENT	
                  
                    23

                  

                
	Section 6.12	Relation to Other Security
                  Instruments	
                  
                    23

                  

                
	Section 6.13	Authority of Administrative Agent	
                  23

                
	Section 6.14	Interest Rate Limitation	
                  23

                

        

      

    

    

    Exhibit
      A
      - Form
      of
      Perfection Certificate

     

    Schedule
      1 - Filings
      and Other Actions Required to Perfect Security Interest

    Schedule
      2 - Existing
      Liens

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    SECURITY
      AGREEMENT

     

    This
      SECURITY
      AGREEMENT,
      dated
      as of February 16, 2007, is between PRC Williston LLC, a Delaware limited
      liability company (the “Debtor”),
      and
      D.B. Zwirn Special Opportunities Fund, L.P., as administrative agent (in such
      capacity, together with its successors and assigns in such capacity, the
“Administrative
      Agent”)
      for
      the financial institutions from time to time parties to the Credit Agreement
      of
      even date herewith (the “Credit
      Agreement”),
      among
      the Debtor, the Lenders parties thereto and the Administrative
      Agent.

     

    R
      E C I T A L S

     

    WHEREAS,
      the
      Debtor has requested that the Lenders provide certain loans to and extensions
      of
      credit on behalf of the Debtor;

     

    WHEREAS,
      the
      Lenders have agreed to make such loans and extensions of credit subject to
      the
      terms of the Credit Agreement; and

     

    WHEREAS,
      it is a
      condition precedent to the obligations of the Lenders to make their respective
      loans and extensions of credit under the Credit Agreement that the Debtor
      execute and deliver this Agreement;

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and agreements contained herein and for
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, the parties hereto agree as follows:

     

    ARTICLE
      I

    DEFINITIONS;
      TERMS GENERALLY

     

    Section
      1.01  Definitions.
      As used
      herein:

     

    (a)  terms
      defined herein have the meanings given such terms herein; 

     

    (b)  unless
      otherwise defined herein, terms defined in the Credit Agreement and used herein
      have the meanings given to them in the Credit Agreement;

     

    (c)  unless
      otherwise defined herein, terms defined in the Uniform Commercial Code (as
      defined herein) and used herein have the same meanings herein as therein
      defined; provided, however, that if a term is defined in Article 9 of the
      Uniform Commercial Code differently than in another Article of the Uniform
      Commercial Code, then such term has the meaning specified in Article 9;
      and

     

    (d)  The
      following terms have the following meanings: 

     

    “Agreement”
means
      this Security Agreement.

     

    “Collateral”
has
      the
      meaning given such term in Section 2.01.

     

    “Event
      of Default”
means
      an “Event of Default” under the Credit Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Obligations”
means
      the collective reference to the payment and performance when due of all
      indebtedness, liabilities, obligations and undertakings of the Debtor and its
      Subsidiaries (including, without limitation, all Indebtedness) of every kind
      or
      description arising out of or outstanding under, advanced or issued pursuant,
      or
      evidenced by, the Secured Documents, including, without limitation, the unpaid
      principal of and interest on the Loans and all other obligations and liabilities
      of the Debtor and its Subsidiaries (including, without limitation, interest
      accruing at the then applicable rate provided in the Credit Agreement after
      the
      maturity of the Loans and interest accruing after the filing of any petition
      in
      bankruptcy, or the commencement of any insolvency, reorganization or like
      proceeding, relating to the Debtor, whether or not a claim for post-filing
      or
      post-petition interest is allowed in such proceeding) to the Secured Creditors,
      whether direct or indirect, absolute or contingent, due or to become due, or
      now
      existing or hereafter incurred, arising out of or outstanding under, advanced
      or
      issued pursuant, or evidenced by, the Secured Documents, and whether on account
      of principal, interest, premium, reimbursement obligations, payments in respect
      of an early termination date, fees, indemnities, costs, expenses or otherwise
      (including, without limitation, all costs, fees and disbursements of counsel
      to
      the Secured Creditors that are required to be paid by the Debtor pursuant to
      the
      terms of any Secured Documents).

     

    “Property”
means
      any interest in any kind of property or asset, whether real, personal or mixed,
      or tangible or intangible, including, without limitation, cash, securities,
      accounts and contract rights.

     

    “Secured
      Creditors”
means
      the collective reference to the Administrative Agent, the Lenders and the
      Lenders and Affiliates of the Lenders that are parties to Secured Swap
      Agreements.

     

    “Secured
      Documents”
means
      the collective reference to the Credit Agreement, the other Loan Documents,
      each
      Secured Swap Agreement and any other document made, delivered or given in
      connection with any of the foregoing.

     

    “Secured
      Swap Agreement”
means
      any swap agreement, cap, floor, collar, forward agreement or other exchange
      or
      protection agreements relating to crude oil, natural gas or other Hydrocarbons
      or interest rates or currencies between the Borrower or any Subsidiary of the
      Borrower and any Lender or any Affiliate of any Lender while such Person (or,
      in
      the case of an Affiliate of a Lender, the Person affiliated therewith) is a
      Lender, including any such agreement between such Persons in existence prior
      to
      the date hereof. For the avoidance of doubt, an agreement ceases to be a Secured
      Swap Agreement if the Person that is the counterparty to the Borrower or a
      Subsidiary of the Borrower under such agreement ceases to be a Lender under
      the
      Credit Agreement (or, in the case of an Affiliate of a Lender, the Person
      affiliated therewith ceases to be a Lender under the Credit
      Agreement).

     

    “Uniform
      Commercial Code”
means
      the Uniform Commercial Code as from time to time in effect in the State of
      New
      York; provided, however, that, in the event that, by reason of mandatory
      provisions of law, any of the attachment, perfection or priority of the
      Administrative Agent’s security interest in any Collateral is governed by the
      Uniform Commercial Code as in effect in a jurisdiction other than the State
      of
      New York, the term “Uniform Commercial Code” shall mean the Uniform Commercial
      Code as in effect in such other jurisdiction for purposes of the provisions
      hereof relating to such attachment, perfection, the effect thereof or priority
      and for purposes of definitions related to such provisions.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Section
      1.02  Terms
      Generally; Rules of Construction.
      The
      definitions of terms herein shall apply equally to the singular and plural
      forms
      of the terms defined. Whenever the context may require, any pronoun shall
      include the corresponding masculine, feminine and neuter forms. The words
“include”, “includes” and “including” shall be deemed to be followed by the
      phrase “without limitation”. The word “will” shall be construed to have the same
      meaning and effect as the word “shall”. Unless the context requires otherwise
(a)
      any
      definition of or reference to any agreement, instrument or other document herein
      shall be construed as referring to such agreement, instrument or other document
      as from time to time amended, supplemented or otherwise modified (subject to
      any
      restrictions on such amendments, supplements or modifications set forth herein
      or in the Secured Documents); (b)
      any
      reference herein to any law shall be construed as referring to such law as
      amended, modified, codified or reenacted, in whole or in part, and in effect
      from time to time; (c)
      any
      reference herein to any Person shall be construed to include such Person’s
      successors and assigns (subject to the restrictions contained herein);
(d)
      the
      words “herein”, “hereof” and “hereunder”, and words of similar import, shall be
      construed to refer to this Agreement in its entirety and not to any particular
      provision hereof; (e)
      with
      respect to the determination of any time period, the word “from” means “from and
      including” and the word “to” means “to and including” and (f)
      any
      reference herein to Articles, Sections or Exhibits shall be construed to refer
      to Articles and Sections of, or Exhibits to, this Agreement. No provision of
      this Agreement or any other Secured Document shall be interpreted or construed
      against any Person solely because such Person or its legal representative
      drafted such provision. Each covenant contained herein shall be construed
      (absent express provision to the contrary) as being independent of each other
      covenant contained herein, so that compliance with any one covenant shall not
      (absent such an express contrary provision) be deemed to excuse compliance
      with
      any other covenant, and where any provision herein refers to action to be taken
      by any Person, or which such Person is prohibited from taking, such provision
      shall be applicable whether such action is taken directly or indirectly by
      such
      Person. Whenever pursuant to this Agreement, the Administrative Agent exercises
      any right given to it to approve or disapprove, or any arrangement or term
      is to
      be satisfactory to the Administrative Agent, the decision of the Administrative
      Agent to approve or disapprove or to decide whether arrangements or terms are
      satisfactory or unsatisfactory shall (except as otherwise specifically herein
      provided) be in the sole discretion of the Administrative Agent and shall be
      final and conclusive.

     

    ARTICLE
      II

    GRANT
      OF SECURITY INTEREST

     

    Section
      2.01  Grant
      of Security Interest.
      As
      collateral security for the prompt and complete payment and performance when
      due
      (whether at the stated maturity, by acceleration or otherwise) of the
      Obligations, the Debtor hereby pledges, assigns and transfers to the
      Administrative Agent, and hereby grants to the Administrative Agent, a
      continuing security interest in, lien on and right of setoff against, all of
      the
      following Property, wherever located, whether now owned or at any time hereafter
      acquired by the Debtor or in which the Debtor now has or at any time in the
      future may acquire any right, title or interest, and all proceeds and products
      of, and all supporting obligations and all collateral security and guarantees
      given by any Person with respect to, the following (collectively, the
“Collateral”):
      all
      personal and fixture Property of every kind and nature including without
      limitation all goods (including inventory, equipment and any accessions
      thereto), instruments (including promissory notes), documents, accounts
      (including health-care-insurance receivables), chattel paper (whether tangible
      or electronic), deposit accounts, letter-of-credit rights (whether or not the
      letter of credit is evidenced by a writing), securities and all
      other

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

      investment
        property, supporting obligations, any other contract rights or rights to
        the
        payment of money, insurance claims and proceeds, and all general intangibles
        (including all payment intangibles). Notwithstanding anything herein to the
        contrary, in no event shall the security interest granted under this Section
        2.01 attach to any lease, license, contract, property rights or agreement
        to
        which the Debtor is a party or any of its rights or interests thereunder
        if and
        for so long as the grant of such security interest shall constitute or result
        in
(a)
        the
        abandonment, invalidation or unenforceability of any right, title or interest
        of
        the Debtor therein or (b)
        in a
        breach or termination pursuant to the terms of, or a default under, any such
        lease, license, contract property rights or agreement (other than to the
        extent
        that any such term would be rendered ineffective pursuant to Sections 9-406,
        9-407, 9-408 or 9-409 of the Uniform Commercial Code), provided, however
        that
        such security interest shall attach immediately at such time as the condition
        causing such abandonment, invalidation or unenforceability shall be remedied
        and
        to the extent severable, shall attach immediately to any portion of such
        lease,
        license, contract, property rights or agreement that does not result in any
        of
        the consequences specified in clauses (a)
        or
(b)
        above.

    

     

    Section
      2.02  Authorization
      to File Financing Statements.
      The
      Debtor hereby irrevocably authorizes the Administrative Agent at any time and
      from time to time to file in any filing office in any relevant jurisdiction
      any
      financing statements and amendments thereto that (a)
      indicate
      the Collateral (i)
      as all
      assets of the Debtor or words of similar effect, regardless of whether any
      particular asset comprised in the Collateral falls within the scope of Article
      9
      of the Uniform Commercial Code or such jurisdiction or (ii)
      as being
      of an equal or lesser scope or with greater detail; and (b)
      provide
      any other information required by part 5 of Article 9 of the Uniform Commercial
      Code, or such other jurisdiction, for the sufficiency or filing office
      acceptance of any financing statement or amendment, including (i)
      whether
      the Debtor is an organization, the type of organization and any organizational
      identification number issued to the Debtor and (ii)
      in the
      case of a financing statement filed as a fixture filing or indicating Collateral
      as as-extracted collateral or timber to be cut, a sufficient description of
      real
      property to which the Collateral relates. The Debtor agrees to furnish any
      such
      information to the Administrative Agent promptly upon the Administrative Agent’s
      request. The Debtor also ratifies its authorization for the Administrative
      Agent
      to have filed in any relevant jurisdiction any like initial financing statements
      or amendments thereto if filed prior to the date hereof.

     

    Section
      2.03  Other
      Actions.
      To
      further the attachment, perfection and priority of, and the ability of the
      Administrative Agent to enforce, the Administrative Agent’s security interest in
      the Collateral, and without limitation on the Debtor’s other obligations in this
      Agreement, the Debtor agrees, in each case at the Debtor’s expense, to take the
      following actions with respect to the following Collateral:

     

    (a)  Promissory
      Notes and Tangible Chattel Paper.
      If the
      Debtor shall at any time hold or acquire any promissory notes or tangible
      chattel paper, the Debtor shall forthwith endorse, assign and deliver the same
      to the Administrative Agent, accompanied by such instruments of transfer or
      assignment duly executed in blank as the Administrative Agent may from time
      to
      time specify.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (b)  Deposit
      Accounts.
      For
      each deposit account that the Debtor at any time opens or maintains, the Debtor
      shall, at the Administrative Agent’s request and option, pursuant to an
      agreement in form and substance satisfactory to the Administrative Agent, either
      (i)
      cause
      the depositary bank to comply at any time with instructions from the
      Administrative Agent to such depositary bank directing the disposition of funds
      from time to time credited to such deposit account, without further consent
      of
      the Debtor or (ii)
      arrange
      for the Administrative Agent to become the customer of the depositary bank
      with
      respect to the deposit account, with the Debtor being permitted, only with
      the
      consent of the Administrative Agent, to exercise rights to withdraw funds from
      such deposit account. The provisions of this Section 2.03(b) shall not apply
      to
(A)
      any
      deposit account for which the Debtor, the depositary bank and the Administrative
      Agent have entered into a cash collateral agreement specially negotiated among
      the Debtor, the depositary bank and the Administrative Agent for the specific
      purpose set forth therein; (B)
      a
      deposit account for which the Administrative Agent is the depositary bank and
      is
      in automatic control and (C)
      deposit
      accounts specially and exclusively used for payroll, payroll taxes and other
      employee wage and benefit payments to or for the benefit of the Debtor’s
      salaried employees.

     

    (c)  Investment
      Property.
      If the
      Debtor shall at any time hold or acquire any certificated securities, the Debtor
      shall forthwith endorse, assign and deliver the same to the Administrative
      Agent, accompanied by such instruments of transfer or assignment duly executed
      in blank as the Administrative Agent may from time to time specify. If any
      securities now or hereafter acquired by the Debtor are uncertificated and are
      issued to the Debtor or its nominee directly by the issuer thereof, the Debtor
      shall immediately notify the Administrative Agent thereof and, at the
      Administrative Agent’s request and option, pursuant to an agreement in form and
      substance satisfactory to the Administrative Agent, either (i)
      cause
      the issuer to agree to comply with instructions from the Administrative Agent
      as
      to such securities, without further consent of the Debtor or such nominee,
      or
(ii)
      arrange
      for the Administrative Agent to become the registered owner of the securities.
      If any securities, whether certificated or uncertificated, or other investment
      property now or hereafter acquired by the Debtor are held by the Debtor or
      its
      nominee through a securities intermediary or commodity intermediary, the Debtor
      shall immediately notify the Administrative Agent thereof and, at the
      Administrative Agent’s request and option, pursuant to an agreement in form and
      substance satisfactory to the Administrative Agent, either (A)
      cause
      such securities intermediary or (as the case may be) commodity intermediary
      to
      agree to comply with entitlement orders or other instructions from the
      Administrative Agent to such securities intermediary as to such securities
      or
      other investment property, or (as the case may be) to apply any value
      distributed on account of any commodity contract as directed by the
      Administrative Agent to such commodity intermediary, in each case without
      further consent of the Debtor or such nominee or (B)
      in the
      case of financial assets or other investment property held through a securities
      intermediary, arrange for the Administrative Agent to become the entitlement
      holder with respect to such investment property, with the Debtor being
      permitted, only with the consent of the Administrative Agent, to exercise rights
      to withdraw or otherwise deal with such investment property. The provisions
      of
      this Section 2.03(c) shall not apply to any financial assets credited to a
      securities account for which the Administrative Agent is the securities
      intermediary.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (d)  Collateral
      in the Possession of a Bailee.
      If any
      Collateral is at any time in the possession of a bailee, the Debtor shall
      promptly notify the Administrative Agent thereof and, at the Administrative
      Agent’s request and option, shall promptly obtain an acknowledgement from the
      bailee, in form and substance satisfactory to the Administrative Agent, that
      the
      bailee holds such Collateral for the benefit of the Administrative Agent, and
      that such bailee agrees to comply, without further consent of the Debtor, with
      instructions from the Administrative Agent as to such Collateral. 

     

    (e)  Electronic
      Chattel Paper and Transferable Records.
      If the
      Debtor at any time holds or acquires an interest in any electronic chattel
      paper
      or any “transferable record,” as that term is defined in Section 201 of the
      federal Electronic Signatures in Global and National Commerce Act, or in Section
      16 of the Uniform Electronic Transactions Act as in effect in any relevant
      jurisdiction, the Debtor shall promptly notify the Administrative Agent thereof
      and, at the request and option of the Administrative Agent, shall take such
      action as the Administrative Agent may reasonably request to vest in the
      Administrative Agent control, under Section 9-105 of the Uniform Commercial
      Code, of such electronic chattel paper or control under Section 201 of the
      federal Electronic Signatures in Global and National Commerce Act or, as the
      case may be, Section 16 of the Uniform Electronic Transactions Act, as so in
      effect in such jurisdiction, of such transferable record. 

     

    (f)  Letter-of-Credit
      Rights.
      If the
      Debtor is at any time a beneficiary under a letter of credit, the Debtor shall
      promptly notify the Administrative Agent thereof and, at the request and option
      of the Administrative Agent, the Debtor shall, pursuant to an agreement in
      form
      and substance satisfactory to the Administrative Agent, either (i)
      arrange
      for the issuer and any confirmer or other nominated Person of such letter of
      credit to consent to an assignment to the Administrative Agent of the proceeds
      of the letter of credit or (ii)
      arrange
      for the Administrative Agent to become the transferee beneficiary of the letter
      of credit, with the Administrative Agent agreeing, in each case, that the
      proceeds of the letter to credit are to be applied as provided in the Credit
      Agreement.

     

    ARTICLE
      III

    REPRESENTATIONS
      AND WARRANTIES

     

    The
      Debtor hereby unconditionally represents and warrants to the Administrative
      Agent, as of the date hereof and at all times during the terms of this
      Agreement, as follows:

     

    Section
      3.01  Debtor’s
      Legal Status. 

     

    (a)  The
      Debtor has previously delivered to the Administrative Agent a certificate signed
      by the Debtor and entitled “Perfection Certificate” in substantially the form
      attached hereto as Exhibit
      A
      (the
“Perfection
      Certificate”);

     

    (b)  the
      Debtor’s exact legal name is that indicated on the Perfection Certificate and on
      the signature page hereof;

     

    (c)  the
      Debtor is an organization of the type, and is organized in the jurisdiction
      set
      forth in the Perfection Certificate;

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (d)  the
      Perfection Certificate accurately sets forth the Debtor’s organizational
      identification number or accurately states that the Debtor has
      none;

     

    (e)  all
      other
      information set forth on the Perfection Certificate pertaining to the Debtor
      is
      accurate and complete; and

     

    (f)  there
      has
      been no change in any information provided in the Perfection Certificate since
      the date on which it was executed by the Debtor.

     

    Section
      3.02  Concerning
      Collateral, Etc.

     

    (a)  The
      Debtor is the owner of or has other rights in or power to transfer the
      Collateral, free from any right or claim or any Person or any adverse lien,
      security interest or other encumbrance, except for the security interests and
      liens permitted by the Credit Agreement;

     

    (b)  no
      dispute, right of setoff (other than by operation of law or pursuant to the
      Loan
      Documents), counterclaim or defense exists with respect to all or any part
      of
      the Collateral; 

     

    (c)  there
      are
      no restrictions on transfer (that have not been waived or otherwise consented
      to) in any agreement or document (other than the Loan Documents) governing
      the
      Collateral or any other agreement relating thereto which would limit or restrict
      (i)
      the
      grant of a security interest or lien in the Collateral; (ii)
      the
      perfection of such security interest or lien or (iii)
      the
      exercise of remedies in respect of such perfected security interest in the
      Collateral; in each case, as contemplated by this Agreement;

     

    (d)  the
      performance by the Debtor of its obligations hereunder will not result in the
      creation of any security interest or lien on any Collateral other than the
      security interest and lien granted hereunder;

     

    (e)  none
      of
      the Collateral constitutes, or is the proceeds of, “farm products” as defined in
      Section 9-102(a)(34) of the Uniform Commercial Code;

     

    (f)  none
      of
      the account debtors or other Persons obligated on any of the Collateral is
      a
      governmental authority covered by the Federal Assignment of Claims Act or like
      federal, state or local statute or rule in respect of such
      Collateral;

     

    (g)  the
      Debtor holds no commercial tort claims; 

     

    (h)  the
      Debtor has at all times operated its business in compliance with all applicable
      provisions of the federal Fair Labor Standards Act, as amended, and with all
      applicable provisions of federal, state and local statutes and ordinances
      dealing with the control, shipment, storage or disposal of hazardous materials
      or substances.

     

    Section
      3.03  Perfected
      First Priority Liens.
      The
      security interests granted pursuant to this Agreement (a) upon completion of
      the
      filings and other actions specified on Schedule
      1
      (which,
      in the case of all filings and other documents referred to on said Schedule,
      have been delivered to the Administrative Agent in completed and duly executed
      form) will constitute valid perfected security interests in all of the
      Collateral in favor of the Administrative Agent, for the ratable benefit of
      the
      Lenders, as collateral security for the Obligations, enforceable in accordance
      with the terms hereof against all creditors of the Debtor and any Persons
      purporting to purchase any Collateral from the Debtor and (b) are prior to
      all
      other Liens on the Collateral in existence on the date hereof except for (i)
      unrecorded Liens expressly permitted by the Credit Agreement which have priority
      over the Liens created by this Agreement by operation of law and (ii) Liens
      described on Schedule
      2.

     

    
      
        
        

      

      
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    ARTICLE
      IV

    COVENANTS

     

    The
      Debtor hereby unconditionally covenants and agrees with the Administrative
      Agent, until the entire Obligations shall have been paid in full as
      follows:

     

    Section
      4.01  Debtor’s
      Legal Status.

     

    (a)  Without
      providing at least thirty (30) days prior written notice to the Administrative
      Agent, the Debtor will not change its name or its organizational identification
      number;

     

    (b)  the
      Debtor will not change its type of organization, jurisdiction of organization
      or
      other legal structure without the prior written consent of the Administrative
      Agent.

     

    Section
      4.02  Concerning
      Collateral, Etc.

     

    (a)  The
      Collateral, to the extent not delivered to the Administrative Agent pursuant
      to
      Section 2.03, will be kept at those locations listed on the Perfection
      Certificate and the Debtor will not remove the Collateral from such locations,
      without providing at least thirty days prior written notice to the
      Administrative Agent;

     

    (b)  except
      for the security interest herein granted and liens permitted by the Credit
      Agreement (including Excepted Liens), the Debtor shall be the owner of or have
      other rights in the Collateral free from any right or claim of any other Person,
      lien, security interest or other encumbrance, and the Debtor shall promptly
      give
      notice to the Administrative Agent of, and shall defend against, any suit,
      action, proceeding or lien that involves the Collateral or that could adversely
      affect the security interest and lien granted by it hereunder, and the Debtor
      shall defend the security interest and lien created by this Agreement against
      the claims and demands of all Persons whomsoever;

     

    (c)  the
      Debtor shall not and shall cause any Subsidiary to not pledge, mortgage or
      create or suffer to exist any right of any Person in or claim by any Person
      to
      the Collateral, or any security interest, lien or encumbrance in the Collateral
      in favor of any Person, other than the Administrative Agent, except for liens
      permitted by Section 10.03 of the Credit Agreement;

     

    
      
        
        

      

      
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    (d)  the
      Debtor will keep the Collateral in good repair, working order, and condition
      (ordinary wear and tear excepted) and will not use the same in violation of
      any
      policy of insurance thereon or in any manner prohibited by the Credit
      Agreement;

     

    (e)  as
      provided in the Credit Agreement, the Debtor will permit the Administrative
      Agent, or its designee, to inspect the Collateral;

     

    (f)  the
      Debtor will promptly pay and discharge, or make reasonable and customary efforts
      to cause to be paid and discharged, all delay rentals, royalties, expenses
      and
      indebtedness pertaining to the Collateral and will do all other things necessary
      to keep unimpaired its rights with respect thereto and prevent any forfeiture
      thereof or default thereunder. The Debtor will, and will cause each Subsidiary
      to, pay its obligations (including Tax liabilities of the Debtor and all of
      its
      Subsidiaries and any agreement material to the business or operations of the
      Debtor or its Affiliates) as required by the Credit Agreement.

     

    (g)  the
      Debtor will furnish to the Administrative Agent from time to time, upon
      Administrative Agent’s reasonable request, statements and schedules further
      identifying and describing the Collateral and such other reports in connection
      with the Collateral as the Administrative Agent may request, all in reasonable
      detail; and

     

    (h)  the
      Debtor will not, and will not permit any Subsidiary to, sell, assign, farm-out,
      convey, dispose, abandon or otherwise transfer any of the Collateral, except
      as
      permitted by the Credit Agreement.

     

    Section
      4.03  Further
      Assurances.
      At any
      time and from time to time, upon the request of the Administrative Agent, and
      at
      the sole expense of the Debtor, the Debtor will promptly and duly give, execute,
      deliver, indorse, file or record any and all financing statements, continuation
      statements, amendments, notices (including, without limitation, notifications
      to
      financial institutions and any other Person), contracts, agreements,
      assignments, certificates, or other instruments, obtain any and all governmental
      or third party approvals and consents, perform or cause to be performed any
      and
      all further acts and provide such further assurances as may be necessary,
      desirable, advisable or proper, in the Administrative Agent’s opinion, to carry
      out more effectively the purposes and intents of this Agreement or to create,
      perfect, establish the priority of, or to preserve the validity, perfection
      or
      priority of, the security interest granted by this Agreement, or to enable
      the
      Administrative Agent to enforce its rights, remedies, powers and privileges
      under the Secured Documents or with respect to such security interest or to
      otherwise obtain or preserve the full benefits of the Secured Documents and
      the
      rights, powers and privileges therein granted. Without limiting the obligations
      of the Debtor under this Section 4.03 or under any other provision of this
      Agreement, upon the request of the Administrative Agent, the Debtor shall take
      or cause to be taken all actions requested by the Administrative Agent to:
      (a)
      correct
      any defect, error, or omission which may be discovered in the contents of the
      Secured Documents or in the execution or acknowledgment thereof; (b)
      cause
      the Administrative Agent’s name to be noted as Administrative Agent on any
      certificate of title for a titled good if such notation is a condition to
      attachment, perfection or priority of, or ability of the Administrative Agent
      to
      enforce, the Administrative Agent’s security interest in such Collateral;
(c)

     

    
      
        
        

      

      
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      cause
        the
        Administrative Agent to have “control” (within the meaning of Sections 9-104,
        9-105, 9-106 and 9-107 of the Uniform Commercial Code) over any deposit
        accounts, electronic chattel paper, investment property or letter-of-credit
        rights, including, without limitation, executing and delivering any agreements,
        in form and substance satisfactory to the Administrative Agent, with securities
        intermediaries, issuers or other Persons in order to establish “control”;
(d)
        cause
        the Administrative Agent to be a “protected purchaser” (as defined in Section
        8-303 of the Uniform Commercial Code); (e)
        comply
        with any provision of any statute, regulation or treaty of the United States
        as
        to any Collateral if compliance with such provision is a condition to
        attachment, perfection or priority of, or ability of the Administrative Agent
        to
        enforce, the Administrative Agent’s security interest hereunder; (f)
        obtain
        governmental and other third party waivers, consents and approvals in form
        and
        substance satisfactory to the Administrative Agent, including, without
        limitation, any consent of any licensor, lessor or other Person obligated
        on
        Collateral and (g)
        take all
        actions under any earlier versions of the Uniform Commercial Code or under
        any
        other law, as reasonably determined by the Administrative Agent to be applicable
        in any relevant Uniform Commercial Code or other jurisdiction. This Section
        4.03
        and the obligations imposed on the Debtor by this Section 4.03 shall be
        interpreted as broadly as possible in favor of the Administrative Agent in
        order
        to effectuate the purpose and intent of this Agreement.

    

     

    ARTICLE
      V

    RIGHTS
      AND REMEDIES

     

    Section
      5.01  Rights
      and Remedies. 

     

    (a)  Upon
      the
      occurrence and during the continuance of an Event of Default, the Administrative
      Agent may exercise, in addition to all other rights and remedies granted to
      it
      in the Secured Documents and in any other instrument or agreement securing,
      evidencing or relating to the Obligations, all rights and remedies of a
      Administrative Agent under the Uniform Commercial Code or any other applicable
      law or otherwise available at law or equity. Without limiting the generality
      of
      the foregoing, the Administrative Agent, without demand of performance or other
      demand, presentment, protest, advertisement or notice of any kind (except any
      notice required by law referred to below) to or upon the Debtor or any other
      Person (all and each of which demands, defenses, advertisements and notices
      are
      hereby waived), may in such circumstances forthwith collect, receive,
      appropriate and realize upon the Collateral, or any part thereof, and/or may
      forthwith sell, lease, assign, give option or options to purchase, or otherwise
      dispose of and deliver the Collateral or any part thereof (or contract to do
      any
      of the foregoing), in one or more parcels at public or private sale or sales,
      at
      any exchange, broker’s board or office of the Administrative Agent or elsewhere
      upon such terms and conditions as it may deem advisable and at such prices
      as it
      may deem best, for cash or on credit or for future delivery without assumption
      of any credit risk. The Administrative Agent and any other Secured Creditor
      shall have the right upon any such public sale or sales, and, to the extent
      permitted by law, upon any such private sale or sales, to purchase the whole
      or
      any part of the Collateral, and any such Person purchasing at any such sale
      shall have the right to credit upon the amount of the bid made therefor, to
      the
      extent necessary to satisfy such bid, the Obligations owing to such Person,
      or
      if such Person holds less than all of the Obligations, the pro rata part thereof
      owing to such Person, accounting to all other Persons not joining in such bid
      in
      cash for the portion of such bid or bids apportionable to such non-bidding
      Persons. It shall not be necessary that the Administrative Agent take possession
      of the Collateral or any part thereof, prior to the time that any sale pursuant
      to the provisions of this Section 5.01(a) is conducted, and it shall not

     

    
      
        
        

      

      
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      be
        necessary that the Collateral or any part thereof be present at the location
        of
        such sale. If applicable to any particular item of Collateral, the Debtor
        further agrees, at the Administrative Agent’s request, to assemble the
        Collateral and make it available to the Administrative Agent at places which
        the
        Administrative Agent shall reasonably select, whether at the Debtor’s premises
        or elsewhere. Any such sale or transfer by the Administrative Agent either
        to
        itself, any other Secured Creditor or to any other Person shall be absolutely
        free from any claim of right by the Debtor, including any equity or right
        of
        redemption, stay or appraisal which the Debtor has or may have under any
        rule of
        law, regulation or statute now existing or hereafter adopted (and the Debtor
        hereby waives any rights it may have in respect thereof). Upon any such sale
        or
        transfer, the Administrative Agent shall have the right to deliver, assign
        and
        transfer to the purchaser or transferee thereof the Collateral so sold or
        transferred. Any and all statements of fact or other recitals made in any
        bill
        of sale or assignment or other instrument evidencing any foreclosure sale
        hereunder, the nonpayment of the Obligations, the occurrence of any Event
        of
        Default, the Secured Creditors having declared all or a portion of such
        Obligations to be due and payable, the notice of time, place, and terms of
        sale
        and of the Properties to be sold having been duly given, or any other act
        or
        thing having been duly done by the Administrative Agent, shall be taken as
        prima
        facie evidence of the truth of the facts so stated and recited.

    

     

    (b)  The
      Administrative Agent shall apply the net proceeds of any action taken by it
      pursuant to Section 5.01(a) or elsewhere herein if so specified, after deducting
      all reasonable costs and expenses of every kind incurred in connection therewith
      or incidental to the care, retaking, holding, preparing for sale, lease or
      other
      disposition, or the sale, lease or other disposition, of the Collateral, or
      in
      any way relating to the Collateral, the collection of the Obligations, or the
      enforcement of the rights of the Administrative Agent hereunder and under the
      other Loan Documents, including, without limitation, reasonable attorneys’ fees
      and disbursements, to the payment in whole or in part of the Obligations in
      accordance with Section 11.02(c) of the Credit Agreement. To the extent
      permitted by applicable law, the Debtor waives all claims, damages and demands
      it may acquire against the Administrative Agent or any other Secured Creditor
      arising out of the exercise by any of them of any rights hereunder. If any
      notice of a proposed sale or other disposition of Collateral shall be required
      by law, then the Debtor hereby acknowledges and agrees that ten (10) days prior
      written notice of such sale or disposition shall be reasonable notice. In
      addition, the Debtor waives any and all rights that it may have to a judicial
      hearing in advance of the enforcement of any of the Administrative Agent’s
      rights and remedies hereunder, including, without limitation, its right
      following an Event of Default to take immediate possession of the Collateral
      and
      to exercise its rights and remedies with respect thereto.

     

    (c)  In
      the
      event that the Administrative Agent elects not to sell the Collateral, the
      Administrative Agent retains its rights to dispose of or utilize the Collateral
      or any part or parts thereof in any manner authorized or permitted by law or
      in
      equity, and to apply the proceeds of the same towards payment of the
      Obligations. Each and every method of disposition of the Collateral described
      in
      this Agreement shall constitute disposition in a commercially reasonable
      manner.

     

    (d)  The
      Debtor shall remain liable for any deficiency if the proceeds of any sale or
      other disposition of the Collateral are insufficient to pay the Obligations
      and
      the reasonable fees and disbursements of any attorneys employed by the
      Administrative Agent to collect such deficiency.

     

    
      
        
        

      

      
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    (e)  The
      Administrative Agent may appoint any Person as agent to perform any act or
      acts
      necessary or incident to any sale or transfer of the Collateral.

     

    Section
      5.02  Securities
      and Deposits.
      The
      Administrative Agent may at any time following and during the continuance of
      an
      Event of Default, at its option, transfer to itself or any nominee any
      securities constituting Collateral, receive any income thereon and hold such
      income as additional collateral or apply it to the Obligations. Whether or
      not
      any Obligations are due, the Administrative Agent may following and during
      the
      continuance of an Event of Default demand, sue for, collect, or make any
      settlement or compromise which it deems desirable with respect to the
      Collateral. Regardless of the adequacy of Collateral or any other security
      for
      the Obligations, if an Event of Default shall have occurred and be continuing,
      then the Administrative Agent and the other Secured Creditors are hereby
      authorized at any time and from time to time, to the fullest extent permitted
      by
      law, to set off and apply any and all deposits or other sums at any time
      credited or held by or due from, and other obligations (of whatsoever kind)
      at
      any time owing by, the Administrative Agent or the Secured Creditors to or
      for
      the credit or the account of the Debtor against any of and all the obligations
      of the Debtor owed to the Administrative Agent or the Secured Creditors now
      or
      hereafter existing under this Agreement, irrespective of whether or not the
      Administrative Agent or any other Secured Creditor shall have made any demand
      under this Agreement and although such obligations may be
      unmatured.

     

    Section
      5.03  Notification
      to Account Debtors and Other Persons Obligated on Collateral.
      If an
      Event of Default shall have occurred and be continuing, then the Debtor shall,
      at the request and option of the Administrative Agent, notify account debtors
      and other Persons obligated on any of the Collateral of the security interest
      of
      the Administrative Agent in any account, as-extracted collateral, chattel paper,
      general intangible, instrument or other Collateral and that payment thereof
      is
      to be made directly to the Administrative Agent or to any financial institution
      designated by the Administrative Agent as the Administrative Agent’s agent
      therefor, and the Administrative Agent may itself, if an Event of Default shall
      have occurred and be continuing, without notice to or demand upon the Debtor,
      so
      notify account debtors and other Persons obligated on Collateral. After the
      making of such a request or the giving of any such notification, the Debtor
      shall hold any proceeds of collection of accounts, as-extracted collateral,
      chattel paper, general intangibles, instruments and other Collateral received
      by
      the Debtor as trustee for the Administrative Agent without commingling the
      same
      with other funds of the Debtor and shall turn the same over to the
      Administrative Agent in the identical form received, together with any necessary
      endorsements or assignments. The Administrative Agent shall apply the proceeds
      of collection of accounts, as-extracted collateral, chattel paper, general
      intangibles, instruments and other Collateral received by the Administrative
      Agent to the Obligations in accordance with Section 5.01(b), such proceeds
      to be
      immediately credited after final payment in cash or other immediately available
      funds of the items giving rise to them.

     

    Section
      5.04  Standards
      for Exercising Rights and Remedies.
      To the
      extent that applicable law imposes duties on the Administrative Agent to
      exercise remedies in a commercially reasonable manner, the Debtor acknowledges
      and agrees that it is not commercially unreasonable for the Administrative
      Agent: (a)
      to fail
      to incur expenses reasonably

     

    
      
        
        

      

      
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      deemed
        significant by the Administrative Agent to prepare Collateral for disposition
        or
        otherwise to fail to complete raw material or work in process into finished
        goods or other finished products for disposition; (b)
        to fail
        to obtain third party consents for access to Collateral to be disposed of,
        or to
        obtain or, if not required by other law, to fail to obtain governmental or
        third
        party consents for the collection or disposition of Collateral to be collected
        or disposed of; (c)
        to fail
        to exercise collection remedies against account debtors or other Persons
        obligated on Collateral or to fail to remove liens or encumbrances on or
        any
        adverse claims against Collateral; (d)
        to
        exercise collection remedies against account debtors and other Persons obligated
        on Collateral directly or through the use of collection agencies and other
        collection specialists; (e)
        to
        advertise dispositions of Collateral through publications or media of general
        circulation, whether or not the Collateral is of a specialized nature;
(f)
        to
        contact other Persons, whether or not in the same business as the Debtor,
        for
        expressions of interest in acquiring all or any portion of the Collateral;
        (g)
        to hire
        one or more professional auctioneers to assist in the disposition of Collateral,
        whether or not the collateral is of a specialized nature; (h)
        to
        dispose of Collateral by utilizing Internet sites that provide for the auction
        of assets of the types included in the Collateral or that have the reasonable
        capability of doing so, or that match buyers and sellers of assets; (i)
        to
        dispose of assets in wholesale rather than retail markets; (j)
        to
        disclaim disposition warranties; (k)
        to
        purchase insurance or credit enhancements to insure the Administrative Agent
        against risks of loss, collection or disposition of Collateral or to provide
        to
        the Administrative Agent a guaranteed return from the collection or disposition
        of Collateral or (l)
        to the
        extent deemed appropriate by the Administrative Agent, to obtain the services
        of
        other brokers, investment bankers, consultants and other professionals to
        assist
        the Administrative Agent in the collection or disposition of any of the
        Collateral. The Debtor acknowledges that the purpose of this Section 5.04
        is to
        provide non-exhaustive indications of what actions or omissions by the
        Administrative Agent would fulfill the Administrative Agent’s duties under the
        Uniform Commercial Code or other law or any other relevant jurisdiction in
        the
        Administrative Agent’s exercise of remedies against the Collateral and that
        other actions or omissions by the Administrative Agent shall not be deemed
        to
        fail to fulfill such duties solely on account of not being indicated in this
        Section 5.04. Without limitation upon the foregoing, nothing contained in
        this
        Section 5.04 shall be construed to grant any rights to the Debtor or to impose
        any duties on the Administrative Agent that would not have been granted or
        imposed by this Agreement or by applicable law in the absence of this Section
        5.04. 

    

     

    Section
      5.05  No
      Retention in Satisfaction.
      Except
      as may be expressly applicable pursuant to Section 9-620 of the Uniform
      Commercial Code, no action taken or omission to act by the Administrative Agent
      or the Secured Creditors hereunder, including, without limitation, any exercise
      of voting or consensual rights or any other action taken or inaction, shall
      be
      deemed to constitute a retention of the Collateral in satisfaction of the
      Obligations or otherwise to be in full satisfaction of the Obligations, and
      the
      Obligations shall remain in full force and effect, until the Administrative
      Agent and the Secured Creditors shall have applied payments (including, without
      limitation, collections from Collateral) towards the payment in full of the
      Obligations.

     

    Section
      5.06  Performance
      by Administrative Agent.
      If the
      Debtor fails to perform or comply with any of its agreements contained herein
      within the applicable grace periods, the Administrative Agent, at its option,
      but without any obligation so to do, may perform or comply, or otherwise cause
      performance or compliance, with such agreement. In addition, in the
      Administrative Agent’s discretion, if the Debtor fails to do so, the
      Administrative Agent may discharge taxes and other encumbrances at any time
      levied or placed on any of the Collateral, maintain any of the Collateral,
      make
      repairs thereto and pay any necessary filing fees or insurance premiums. The
      Debtor agrees to reimburse the Administrative Agent on demand for all
      expenditures so made. The Administrative Agent shall have no obligation to
      the
      Debtor to make any such expenditures, nor shall the making thereof be construed
      as the waiver or cure of any Default or Event of Default.

     

    
      
        
        

      

      
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    Section
      5.07  Administrative
      Agent’s Appointment as Attorney-in-Fact, Etc.

     

    (a)  The
      Debtor hereby irrevocably constitutes and appoints the Administrative Agent
      with
      full power of substitution, as its true and lawful attorney-in-fact with full
      irrevocable power and authority in the place and stead of the Debtor and in
      the
      name of the Debtor, or in the Administrative Agent’s own name, for the purpose
      of carrying out the terms of this Agreement, to take any and all reasonably
      appropriate action and to execute any and all documents and instruments which
      may be reasonably necessary or desirable to accomplish the purposes of this
      Agreement, and, without limiting the generality of the foregoing, the Debtor
      hereby gives the Administrative Agent the power and right, on behalf of the
      Debtor, without notice to or assent by the Debtor, to do any or all of the
      following:

     

    (i)  pay
      or
      discharge taxes and liens levied or placed on or threatened against the
      Collateral; 

     

    (ii)  execute,
      in connection with any sale provided for herein, any endorsements, assignments
      or other instruments of conveyance or transfer with respect to the Collateral;
      and

     

    (iii)  (A)
      direct
      any party liable for any payment under any of the Collateral to make payment
      of
      any and all moneys due or to become due thereunder directly to the
      Administrative Agent or as the Administrative Agent shall direct; (B)
      ask or
      demand for, collect, and receive payment of and receipt for, any and all moneys,
      claims and other amounts due or to become due at any time in respect of or
      arising out of any Collateral; (C)
      in the
      name of the Debtor or its own name, or otherwise, take possession of and indorse
      and collect any check, draft, note, acceptance or other instrument for the
      payment of moneys due with respect to any Collateral and commence and prosecute
      any suits, actions or proceedings at law or in equity in any court of competent
      jurisdiction to collect the Collateral or any portion thereof and to enforce
      any
      other right in respect of any Collateral; (D)
      in the
      name of the Debtor or in its own name, exercise all rights, powers, privileges
      and remedies to which the Debtor would be entitled as the owner of the
      Collateral; (E)
      defend
      any suit, action or proceeding brought against the Debtor with respect to any
      Collateral; (F)
      settle,
      compromise or adjust any such suit, action or proceeding and, in connection
      therewith, give such discharges or releases as the Administrative Agent may
      deem
      appropriate; (G)
      arrange
      for the transfer of the Collateral on the books of the issuer or any other
      Person to the name of the Administrative Agent or to the name of the
      Administrative Agent’s nominee; (H)
      file and
      prosecute registration and transfer applications with the appropriate federal,
      state, local or other agencies or authorities with respect to trademarks,
      copyrights and patentable inventions and processes; (I)
      exercise
      voting rights with respect to voting securities; (J)
      execute,
      deliver and record in connection with any sale or other disposition of any
      Collateral, endorsements, assignments or other instruments of conveyance or
      transfer with respect to such 

     

    
      
        
        

      

      
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      Collateral
        and (K)
        generally, sell, transfer, pledge and make any agreement with respect to
        or
        otherwise deal with any of the Collateral as fully and completely as though
        the
        Administrative Agent were the absolute owner thereof for all purposes, and
        do,
        at the Administrative Agent’s option and the Debtor’s expense, at any time, or
        from time to time, all acts and things which the Administrative Agent deems
        necessary to protect, preserve or realize upon the Collateral and the
        Administrative Agent’s security interests therein and to effect the intent of
        this Agreement, all as fully and effectively as the Debtor might do.

    

     

    (b)  The
      Debtor hereby ratifies all that said attorneys shall lawfully do or cause to
      be
      done by virtue and in compliance hereof. All powers, authorizations and agencies
      contained in this Agreement are coupled with an interest and are irrevocable
      until this Agreement is terminated and the security interests created hereby
      are
      released.

     

    (c)  The
      expenses of the Administrative Agent incurred in connection with actions
      undertaken as provided in this Section 5.07, shall be payable by the Debtor
      to
      the Administrative Agent on demand.

     

    (d)  THE
      POWERS CONFERRED ON THE ADMINISTRATIVE AGENT HEREUNDER ARE SOLELY TO PROTECT
      ITS
      INTERESTS IN THE COLLATERAL AND SHALL NOT IMPOSE ANY DUTY UPON IT TO EXERCISE
      ANY SUCH POWERS. THE ADMINISTRATIVE AGENT SHALL BE ACCOUNTABLE ONLY FOR THE
      AMOUNTS THAT IT ACTUALLY RECEIVES AS A RESULT OF THE EXERCISE OF SUCH POWERS,
      AND NEITHER IT NOR ANY OF ITS EMPLOYEES OR AGENTS SHALL BE RESPONSIBLE TO THE
      DEBTOR FOR ANY ACT OR FAILURE TO ACT (INCLUDING FOR SUCH PERSON’S OWN ORDINARY
      NEGLIGENCE), EXCEPT FOR THE ADMINISTRATIVE AGENT’S OWN GROSS NEGLIGENCE OR
      WILLFUL MISCONDUCT.

     

    Anything
      in this Section 5.07 to the contrary notwithstanding, the Administrative Agent
      agrees that it will not exercise any rights under the power of attorney provided
      for in this Section 5.07 unless an Event of Default shall have occurred and
      be
      continuing.

     

    Section
      5.08  Waiver.
      To the
      fullest extent permitted by law, the Debtor hereby irrevocably and
      unconditionally waives and releases: (a)
      all
      benefits that might accrue to the Debtor by virtue of any present or future
      moratorium law or other law exempting the Collateral from attachment, levy
      or
      sale on execution or providing for any appraisement, valuation, stay of
      execution, exemption from civil process, redemption or extension of time for
      payment; (b)
      diligence, presentment, protest, demand for payment and notice of default or
      nonpayment to or upon the Debtor with respect to the Obligations or notice
      of
      the Secured Creditors’ intention to accelerate maturity of obligations or of the
      Secured Creditors’ election to exercise or their actual exercise of any right,
      remedy or recourse provided for hereunder or any other Secured Document and
      any
      other notice of any kind whatsoever; (c)
      any
      rights, legal and equitable, to a marshalling of assets or a sale in inverse
      order of alienation (the Debtor acknowledges and agrees that in exercising
      any
      rights under or with respect to the Collateral, the Administrative Agent is
      under no obligation to marshal any Collateral; the Administrative Agent may,
      in
      its absolute discretion, realize upon the Collateral in any order and in any
      manner it so elects and may, in its absolute discretion, apply the proceeds
      of
      any or all the Collateral to the Obligations in any order and in any manner
      it
      so elects); (d)

     

    
      
        
        

      

      
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      any
        right
        to require the Administrative Agent to proceed against any other Person,
        exhaust
        any Collateral or other security for the Obligations, or to have any other
        Person liable on the Obligations joined with the Debtor in any suit arising
        out
        of the Obligations or this Agreement, or pursue any other remedy in the
        Administrative Agent’s power; (e)
        until
        all of the Obligations shall have been paid in full in cash, any right to
        subrogation and the Debtor waives the right to enforce any remedy which the
        Administrative Agent has or may hereafter have against any other Person liable
        on the Obligations, and waives any benefit of and any right to participate
        in
        any other security whatsoever now or hereafter held by the Administrative
        Agent;
(f)
        any and
        all legal rights which might otherwise require the Administrative Agent to
        enforce its rights by judicial process (it being understood that the
        Administrative Agent may enforce its rights hereunder without prior judicial
        process or judicial hearing); (g)
        and the
        Debtor agrees not to assert any rights or privileges which it may acquire
        under
        the Uniform Commercial Code, any analogous common law rights or privileges
        or
        any other applicable law; (h)
        the
        right to plead any and all statutes of limitation as a defense to any demand
        secured by or made pursuant to this Agreement; (i)
        all
        claims, damages and demands it may acquire against the Secured Creditors
        arising
        out of the exercise by them of any rights hereunder; (j)
        any
        notice of or proof of reliance by the Administrative Agent or any Person
        upon
        the provision of collateral contemplated hereby or acceptance of the provision
        of collateral contemplated hereby; the Obligations, and any of them, shall
        conclusively be deemed to have been created, contracted or incurred, or renewed,
        extended, amended or waived, in reliance upon the provision of collateral
        contemplated hereby and no notice of creation of the Obligations or any
        extension of credit already or hereafter contracted by or extended to the
        Debtor
        or any other Person need be given to the Debtor; (k)
        any and
        all notice of the creation, accrual, modification, rearrangement, renewal
        or
        extension for any period of any of the Obligations of any other Person liable
        on
        the Obligations from time to time and (l)
        any
        defense arising by reason of any disability or other defense of any other
        Person
        or by reason of the cessation from any cause whatsoever of the liability
        of any
        other Person. If any law referred to in this Agreement and now in force,
        of
        which the Debtor or its successor or successors might take advantage despite
        the
        provisions hereof, shall hereafter be repealed or cease to be in force, such
        law
        shall thereafter be deemed not to constitute any part of the contract herein
        contained or to preclude the operation or application of the provisions
        hereof.

    

     

    Section
      5.09  No
      Release.
      Neither
      the Debtor nor any other Person hereafter obligated for payment of all or any
      part of the Obligations shall be relieved of such obligation by reason of:
      (a)
      the
      failure of the Administrative Agent or any other Secured Creditor to comply
      with
      any request of the Debtor or any other Person so obligated to foreclose the
      security interest and lien of the Collateral or to enforce any provision
      hereunder or under any other Secured Document; (b)
      the
      release, regardless of consideration, of the Collateral or any portion thereof
      or interest therein or the addition of any other Property to the Collateral
      or
      the release of any other collateral or credit support arrangement securing
      the
      Obligations; (c)
      the
      release, regardless of consideration, of any party liable, either directly
      or
      indirectly, for the Obligations or for any covenant herein or in any other
      Secured Document; (d)
      any
      agreement or stipulation between any subsequent owner of the Collateral and
      the
      Administrative Agent or any other Secured Creditor extending, renewing,
      rearranging or in any other way modifying the terms of this Agreement without
      first having obtained the consent of, given notice to or paid any consideration
      to the Debtor or such other Person, and in such event the Debtor, all guarantors
      and all such other Persons shall continue to be liable to make payment according
      to the terms of any such extension or modification agreement unless

     

    
      
        
        

      

      
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      expressly
        released and discharged in writing by the Administrative Agent; or (e)
        by any
        other act or occurrence save and except the complete payment of the Obligations
        and the complete fulfillment of all obligations hereunder and under the Secured
        Documents. The Debtor authorizes the Administrative Agent and each other
        Secured
        Creditor, without notice or demand and without any reservation of rights
        against
        the Debtor and without affecting the Debtor’s liability hereunder or on the
        Obligations, and without impairing the security interest and lien and rights
        of
        the Administrative Agent or the other Secured Creditors hereunder, from time
        to
        time to (i)
        take or
        hold any other Property of any type from any other Person as security for
        the
        Obligations, and exchange, enforce, waive and release any or all of such
        other
        Property; (ii)
        apply
        the Collateral or such other Property and direct the order or manner of sale
        thereof as the Administrative Agent may in its discretion determine;
(iii)
        renew,
        extend for any period, accelerate, modify, compromise, settle or release
        any of
        the obligations of any other Person liable on the Obligations in respect
        to any
        or all of the Obligations or other security for the Obligations; (iv)
        waive,
        enforce, modify, amend or supplement any of the provisions of any Secured
        Document with any Person other than the Debtor and (v)
        release
        or substitute any other Person liable on the Obligations. The security interest
        and lien and other security rights of the Administrative Agent hereunder
        shall
        not be impaired by any indulgence, moratorium or release granted by the
        Administrative Agent including, but not limited to, any renewal, extension
        or
        modification which the Secured Creditors may grant with respect to any of
        the
        Obligations, or any surrender, compromise, release, renewal, extension, exchange
        or substitution which the Secured Creditors may grant in respect of the
        Collateral or any part thereof or any interest therein, or any release or
        indulgence granted to any endorser, guarantor or surety of any of the
        Obligations. To the maximum extent permitted by law, all rights of the
        Administrative Agent and the other Secured Creditors, all security interests
        hereunder, and all obligations of the Debtor hereunder, shall be absolute
        and
        unconditional irrespective of: (A)
        any lack
        of validity or enforceability of any of the Obligations or any other agreement
        or instrument relating thereto, including any of the Secured Documents;
(B)
        any
        change in the time, manner or place of payment of, or in any other term of,
        all
        or any part of the Obligations, or any other amendment or waiver of or any
        consent to any departure from any of the Secured Documents, or any other
        agreement or instrument relating thereto; (C)
        any
        exchange, release, or non-perfection of any other collateral, or any release
        or
        amendment or waiver of or consent to departure from any Secured Document
        or any
        guaranty for all or any of the Obligations or (D)
        any
        other circumstance that might otherwise constitute a defense available to,
        or a
        discharge of, the Debtor. Each successor and assign of the Debtor, including
        without limitation, a holder of a security interest or lien subordinate to
        the
        security interest and lien created hereby (without implying that the Debtor
        has,
        except as expressly provided herein or in the Credit Agreement, a right to
        grant
        an interest in, or a subordinate a security interest or lien on, the
        Collateral), by acceptance of its interest or lien agrees that it shall be
        bound
        by the waivers contained herein, as if it gave the waiver
        itself.

    

     

    Section
      5.10  Duty
      of Administrative Agent.
      The
      Administrative Agent’s sole duty with respect to the custody, safekeeping and
      physical preservation of the Collateral in its possession, under Section 9-207
      of the Uniform Commercial Code or otherwise, shall be to deal with it in the
      same manner as the Administrative Agent deals with similar Property for its
      own
      account and shall be deemed to have exercised reasonable care in the custody
      and
      preservation of the Collateral in its possession if the Collateral is accorded
      treatment substantially equal to that which comparable secured parties accord
      comparable collateral. The Administrative Agent shall not be liable for failure
      to demand, collect or realize upon any

     

    
      
        
        

      

      
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      of
        the
        Collateral or for any delay in doing so or shall be under any obligation
        to
        sell, otherwise dispose of, or collect or receive payments upon, any Collateral
        upon the request of the Debtor or any other Person or to take any other action
        whatsoever with regard to the Collateral or any part thereof. Anything herein
        to
        the contrary notwithstanding, the Debtor shall remain obligated and liable
        under
        each contract or agreement comprised in the Collateral to be observed or
        performed by the Debtor thereunder. The Administrative Agent shall not have
        any
        obligation or liability under any such contract or agreement by reason of
        or
        arising out of this Agreement or the receipt by the Administrative Agent
        of any
        payment relating to any of the Collateral, nor shall the Administrative Agent
        be
        obligated in any manner to perform any of the obligations of the Debtor under
        or
        pursuant to any such contract or agreement, to make inquiry as to the nature
        or
        sufficiency of any payment received by the Administrative Agent in respect
        of
        the Collateral or as to the sufficiency of any performance by any party under
        any such contract or agreement, to present or file any claim, to take any
        action
        to enforce any performance or to collect the payment of any amounts which
        may
        have been assigned to the Administrative Agent or to which the Administrative
        Agent may be entitled at any time or times. THE
        POWERS CONFERRED ON THE ADMINISTRATIVE AGENT ARE SOLELY TO PROTECT THE
        ADMINISTRATIVE AGENT’S INTERESTS IN THE COLLATERAL AND SHALL NOT IMPOSE ANY DUTY
        UPON THE ADMINISTRATIVE AGENT TO EXERCISE ANY SUCH POWERS. THE ADMINISTRATIVE
        AGENT SHALL BE ACCOUNTABLE ONLY FOR AMOUNTS THAT IT ACTUALLY RECEIVES AS
        A
        RESULT OF THE EXERCISE OF SUCH POWERS, AND IT SHALL NOT BE RESPONSIBLE TO
        THE
        DEBTOR FOR ANY ACT OR FAILURE TO ACT HEREUNDER, EXCEPT FOR ITS OWN GROSS
        NEGLIGENCE OR WILLFUL MISCONDUCT.

    

     

    Section
      5.11  Payment
      of Expenses, Indemnities, Etc.

     

    (a)  The
      Debtor agrees to pay or reimburse the Administrative Agent and each other
      Secured Creditor for all out-of-pocket expenses incurred by such Person,
      including the reasonable fees, charges and disbursements of any counsel for
      such
      Person, in connection with the enforcement or protection of its rights in
      connection with this Agreement or any other Loan Document, including, without
      limitation, all costs and expenses incurred in connection with (i)
      the
      custody, use or preservation of, or the sale of, collection from or other
      realization upon, any of the Collateral, including the reasonable expenses
      of
      re-taking, holding, preparing for sale or lease, selling or otherwise disposing
      of or realizing on the Collateral; (ii)
      the
      exercise or enforcement of any rights or remedies granted hereunder or under
      any
      of the other document or agreement executed or delivered in connection herewith
      or otherwise available to it (whether at law, in equity or otherwise) or
(iii)
      the
      failure by the Debtor to perform or observe any of the provisions hereof or
      otherwise enforcing or preserving any rights under this Agreement and the other
      Loan Documents.

     

    (b)  The
      Debtor agrees to pay, and to save the Administrative Agent and the Secured
      Creditors harmless from, any and all liabilities with respect to, or resulting
      from any delay in paying, any and all Other Taxes which may be payable or
      determined to be payable with respect to any of the Collateral or in connection
      with any of the transactions contemplated by this Agreement.

     

    
      
        
        

      

      
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    (c)  THE
      DEBTOR AGREES TO PAY, AND TO INDEMNIFY AND SAVE THE ADMINISTRATIVE AGENT AND
      THE
      SECURED CREDITORS HARMLESS FROM, ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES,
      DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS, EXPENSES OR DISBURSEMENTS
      OF ANY KIND OR NATURE WHATSOEVER WITH RESPECT TO THE EXECUTION, DELIVERY,
      ENFORCEMENT, PERFORMANCE AND ADMINISTRATION OF THIS AGREEMENT TO THE EXTENT
      THE
      DEBTOR WOULD BE REQUIRED TO DO SO PURSUANT TO THE CREDIT AGREEMENT. THE
      LIABILITIES OF THE DEBTOR AS SET FORTH IN THIS SECTION 5.11 SHALL SURVIVE THE
      TERMINATION OF THIS AGREEMENT AND THE REPAYMENT OF THE
      OBLIGATIONS.

     

    (d)  All
      amounts due under this Section 5.11 shall be payable promptly after written
      demand therefor.

     

    Section
      5.12  Overdue
      Amounts.
      Until
      paid, all amounts due and payable by the Debtor hereunder shall be a debt
      secured by the Collateral and shall bear, whether before or after judgment,
      interest from and including the due date to but excluding the date of payment
      at
      the Post Default Rate.

     

    ARTICLE
      VI

    MISCELLANEOUS

     

    Section
      6.01  Notices.
      All
      notices and other communications provided for herein shall be given in the
      manner and subject to the terms of Section 13.01 of the Credit
      Agreement.

     

    Section
      6.02  Amendments.
      No
      amendment, supplement or modification of this Agreement, and no waiver of any
      provision of this Agreement or consent to any departure by the Debtor therefrom,
      shall in any event be effective unless the same shall be effectuated in
      accordance with Section 13.02(b) of the Credit Agreement, and then any such
      waiver or consent shall be effective only in the specific instance and for
      the
      purpose for which given. 

     

    Section
      6.03  No
      Waiver.
      No
      failure on the part of the Administrative Agent or any other Secured Creditor
      to
      exercise and no delay in exercising, and no course of dealing with respect
      to,
      any right, power or privilege, or any abandonment or discontinuance of steps
      to
      enforce such right, power or privilege, under this Agreement or any other
      Secured Document shall operate as a waiver thereof, nor shall any single or
      partial exercise of any right, power or privilege under this Agreement or any
      other Secured Document preclude any other or further exercise thereof or the
      exercise of any other right, power or privilege. 

     

    Section
      6.04  Remedies
      Cumulative: Non-Exclusive; Etc.
      All
      rights, remedies, and recourses of the Administrative Agent and the other
      Secured Creditors granted in the this Agreement and the other Secured Documents
      and any other pledge of collateral, or otherwise available at law or equity:
      (a)
      shall be
      cumulative and concurrent; (b)
      may be
      pursued separately, successively, or concurrently against the Debtor or others
      obligated for payment of the Obligations, or against Collateral or any other
      collateral, or any one or more of them, at the sole discretion of the
      Administrative Agent or the Secured Creditors; (c)
      may be
      exercised as often as occasion therefor shall arise, it being agreed by the
      Debtor that the exercise

     

    
      
        
        

      

      
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      or
        failure to exercise or the beginning, or the abandonment, or the delay of
        any of
        same, shall in no event be construed as a waiver or release thereof or of
        any
        other right, remedy, or recourse; (d)
        are
        intended to be, and shall be, nonexclusive; (e)
        shall
        not be conditioned upon the Administrative Agent or any other Secured Creditor
        exercising or pursuing any remedy in relation to the Collateral prior to
        the
        Administrative Agent or any other Secured Creditor bringing suit to recover
        the
        Obligations and (f)
        in the
        event the Administrative Agent or any other Secured Creditor elects to bring
        suit on the Obligations and obtains a judgment against the Debtor prior to
        the
        exercise of any remedies in relation to the Collateral, all liens and security
        interests, including the lien and security interest of this Agreement, shall
        remain in full force and effect and may be exercised at the Administrative
        Agent’s option.

    

     

    Section
      6.05  Successors
      and Assigns.
      This
      Agreement creates a continuing security interest in the Collateral and the
      provisions of this Agreement shall be binding upon the Debtor and its successors
      and permitted assigns and shall inure, together with all the rights and remedies
      of the Administrative Agent hereunder, to the benefit of the Administrative
      Agent and the Secured Creditors and their respective successors and assigns;
      provided that the Debtor may not assign, transfer or delegate any of its rights
      or obligations under this Agreement without the prior written consent of the
      Administrative Agent and the Lenders, and any such purported assignment,
      transfer or delegation shall be null and void. 

     

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

     

    Section
      6.07  Survival;
      Revival; Restatement.
      All
      covenants, agreements, representations and warranties made by the Debtor herein
      and in the certificates (including, without limitation, the Perfection
      Certificate) or other instruments delivered in connection with or pursuant
      to
      this Agreement or any other Loan Document to which it is a party shall be
      considered to have been relied upon by the Administrative Agent and the other
      Secured Creditors and shall survive the execution and delivery of this Agreement
      and the making of any Loans, regardless of any investigation made by any such
      other party or on its behalf and notwithstanding that the Administrative Agent
      or any Secured Creditor may have had notice or knowledge of any Default or
      incorrect representation or warranty at the time any credit is extended
      hereunder, and shall continue in full force and effect as long as the principal
      of or any accrued interest on any Loan or any fee or any other amount payable
      under the Credit Agreement is outstanding and unpaid and so long as the
      Commitments have not expired or terminated. The provisions of Section 5.11
      shall
      survive and remain in full force and effect regardless of the consummation
      of
      the transactions contemplated hereby, the repayment of the Loans, the expiration
      or termination of the Commitments or the termination of this Agreement, any
      other Loan Document or any provision hereof or thereof. To the extent that
      any
      payments on the Obligations or proceeds of any Collateral are subsequently
      invalidated, declared to be fraudulent or preferential, set aside or required
      to
      be repaid to a trustee, debtor in possession, receiver or other Person under
      any
      bankruptcy law, common law or equitable cause, then to such extent, the
      Obligations so satisfied shall be revived and

     

    
      
        
        

      

      
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      continue
        as if such payment or proceeds had not been received and the Administrative
        Agent’s and the Secured Creditors’ liens, security interests, rights, powers and
        remedies under this Agreement and each other Loan Document shall continue
        in
        full force and effect. In such event, each Loan Document shall be automatically
        reinstated and the Debtor shall take such action as may be reasonably requested
        by the Administrative Agent or the Secured Creditors to effect such
        reinstatement.

    

     

    Section
      6.08  Counterparts.
      This
      Agreement may be executed in counterparts (and by different parties hereto
      on
      different counterparts), each of which shall constitute an original, but all
      of
      which when taken together shall constitute a single contract. In making proof
      of
      this Agreement, it shall not be necessary to produce or account for any
      counterpart other than one signed by the party against which enforcement is
      sought. Delivery of an executed counterpart of a signature page of this
      Agreement by facsimile shall be effective as delivery of a manually executed
      counterpart of this Agreement. 

     

    Section
      6.09  Acknowledgments.
      The
      Debtor hereby acknowledges that (a)
      it has
      been advised by counsel in the negotiation, execution and delivery of this
      Agreement and the other Secured Documents to which it is a party; (b)
      neither
      the Administrative Agent nor any Secured Creditor has any fiduciary relationship
      with or duty to the Debtor arising out of or in connection with this Agreement
      or any of the other Loan Documents, and the relationship between the Debtor,
      on
      the one hand, and the Administrative Agent and the Secured Creditors, on the
      other hand, in connection herewith or therewith is solely that of debtor and
      creditor; and (c)
      no joint
      venture is created hereby or by the other Loan Documents or otherwise exists
      by
      virtue of the transactions contemplated hereby among the Secured Creditors
      or
      among the Debtor and the Secured Creditors. Each of the parties hereto
      specifically agrees that it has a duty to read this Agreement, the Security
      Instruments and the other Loan Documents and agrees that it is charged with
      notice and knowledge of the terms of this Agreement, the Security Instruments
      and the other Loan Documents; that it has in fact read this Agreement, the
      Security Instruments and the other Loan Documents and is fully informed and
      has
      full notice and knowledge of the terms, conditions and effects thereof; that
      it
      has been represented by independent legal counsel of its choice throughout
      the
      negotiations preceding its execution of this Agreement and the Security
      Instruments; and has received the advice of its attorney in entering into this
      Agreement and the Security Instruments; and that it recognizes that certain
      of
      the terms of this Agreement and the Security Instruments result in one party
      assuming the liability inherent in some aspects of the transaction and relieving
      the other party of its responsibility for such liability. EACH
      PARTY HERETO AGREES AND COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR
      ENFORCEABILITY OF ANY EXCULPATORY PROVISION OF THIS AGREEMENT AND THE SECURITY
      INSTRUMENTS ON THE BASIS THAT THE PARTY HAD NO NOTICE OR KNOWLEDGE OF SUCH
      PROVISION OR THAT THE PROVISION IS NOT “CONSPICUOUS.”

     

    Section
      6.10  GOVERNING
      LAW; CONSENT TO JURISDICTION. 

     

    (a)  THIS
      AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
      OF
      THE STATE OF NEW YORK.

     

    
      
        
        

      

      
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    (b)  ANY
      LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN
      DOCUMENT SHALL BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE
      UNITED STATES OF AMERICA LOCATED IN THE BOURROGH OF MANHATTAN, AND, BY EXECUTION
      AND DELIVERY OF THIS AGREEMENT, EACH OF THE PARTIES HEREBY ACCEPTS FOR ITSELF
      AND (TO THE EXTENT PERMITTED BY LAW) IN RESPECT OF ITS PROPERTY, GENERALLY
      AND
      UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH PARTY HEREBY
      IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION
      TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH
      IT
      MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING
      IN
      SUCH RESPECTIVE JURISDICTIONS. THIS SUBMISSION TO JURISDICTION IS NON-EXCLUSIVE
      AND DOES NOT PRECLUDE A PARTY FROM OBTAINING JURISDICTION OVER ANOTHER PARTY
      IN
      ANY COURT OTHERWISE HAVING JURISDICTION.

     

    (c)  EACH
      PARTY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE
      AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES
      THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO IT AT THE ADDRESS
      SPECIFIED IN SECTION 13.01 OF THE CREDIT AGREEMENT (OR SUCH OTHER ADDRESS AS
      IS
      SPECIFIED PURSUANT TO SECTION 13.01 OF THE CREDIT AGREEMENT), AS APPLICABLE,
      SUCH SERVICE TO BECOME EFFECTIVE THIRTY (30) DAYS AFTER SUCH MAILING. NOTHING
      HEREIN SHALL AFFECT THE RIGHT OF A PARTY OR ANY HOLDER OF A NOTE TO SERVE
      PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS
      OR
      OTHERWISE PROCEED AGAINST ANOTHER PARTY IN ANY OTHER
      JURISDICTION.

     

    (d)  EACH
      PARTY HEREBY (i)
      IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
      LAW,
      TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT
      OR
      ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN; (ii)
      IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT
      IT
      MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, EXEMPLARY,
      PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO,
      ACTUAL DAMAGES; (iii)
      CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OR AGENT OF COUNSEL FOR
      ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED THAT SUCH
      PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
      WAIVERS AND (iv) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS
      AGREEMENT, THE OTHER LOAN DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY
      AND
      THEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED
      IN THIS SECTION 6.10.

     

    
      
        
        

      

      
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    Section
      6.11  ENTIRE
      AGREEMENT. THIS WRITTEN AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE
      FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE
      OF
      PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES HERETO.
      THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
      PARTIES.

     

    Section
      6.12  Relation
      to Other Security Instruments.
      The
      provisions of this Agreement supplement the provisions of any real estate
      mortgage or deed of trust, pledge agreement or other Security Instrument granted
      by the Debtor to the Administrative Agent which secures the payment or
      performance of any of the Obligations. Nothing contained in any such real estate
      mortgage, deed of trust, pledge agreement or other Security Instrument shall
      derogate from any of the rights or remedies of the Administrative Agent
      hereunder. 

     

    Section
      6.13  Authority
      of Administrative Agent.
      The
      Debtor acknowledges that the rights and responsibilities of the Administrative
      Agent under this Agreement with respect to any action taken by the
      Administrative Agent or the exercise or non-exercise by the Administrative
      Agent
      of any option, voting right, request, judgment or other right or remedy provided
      for herein or resulting or arising out of this Agreement shall, as between
      the
      Administrative Agent and the Lenders, be governed by the Credit Agreement and
      by
      such other agreements with respect thereto as may exist from time to time among
      them, but, as between the Administrative Agent and the Debtor, the
      Administrative Agent shall be conclusively presumed to be acting as agent for
      the Lenders with full and valid authority so to act or refrain from acting,
      and
      the Debtor shall be under no obligation, or entitlement, to make any inquiry
      respecting such authority.

     

    Section
      6.14  Interest
      Rate Limitation.
      It is
      the intention of the parties hereto that each party shall conform strictly
      to
      usury laws applicable to it. Accordingly, if the transactions contemplated
      hereby would be usurious as to any party under laws applicable to it (including
      the laws of the United States of America and the State of Texas or any other
      jurisdiction whose laws may be mandatorily applicable to such party
      notwithstanding the other provisions of this Agreement), then, in that event,
      notwithstanding anything to the contrary in any of the Secured Documents or
      any
      agreement entered into in connection with or as security for the Obligations,
      it
      is agreed as follows: (a)
      the
      aggregate of all consideration which constitutes interest under law applicable
      to any party that is contracted for, taken, reserved, charged or received by
      such party under any of the Secured Documents or agreements or otherwise in
      connection with the Obligations shall under no circumstances exceed the maximum
      amount allowed by such applicable law, and any excess shall be canceled
      automatically and if theretofore paid shall be credited by such party on the
      principal amount of the Obligations (or, to the extent that the principal amount
      of the Obligations shall have been or would thereby be paid in full, refunded
      by
      such party); and (b)
      in the
      event that the maturity of the Obligations is accelerated by reason of an
      election of the holder thereof resulting from any Event of Default under this
      Agreement or otherwise, or in the event of any required or permitted prepayment,
      then such consideration that constitutes interest under law applicable to any
      party may never include more than the maximum amount allowed by such applicable
      law, and excess interest, if any, provided for in this Agreement or otherwise
      shall be canceled automatically by such party as of the date of such
      acceleration or prepayment and, if theretofore paid, shall be credited by such
      party on the principal amount of the Obligations (or, to the extent that the
      principal amount of the Obligations shall have been or would thereby be paid
      in
      full, refunded by such party). 

     

    [Remainder
      of Page Intentionally Left Blank] 

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

       

    

    IN
      WITNESS WHEREOF,
      intending to be legally bound, the Debtor has caused this Agreement to be duly
      executed as of the date first above written.

     

     

    
      	 	
              PRC
                WILLISTON LLC

               

              By:
                 /s/
                Wayne P.
                Hall                              

              Name:
                Wayne P. Hall

              Title:
                 Chief
                Executive Officer

            

    

    

    

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    PERFECTION
      CERTIFICATE

    (UCC
      Financing Statements)

     

    The
      undersigned, the Chief Executive Officer of PRC Williston LLC, a Delaware
      limited liability company (the “Debtor”),
      with
      reference to that certain Security Agreement dated as of February ___, 2007
      (the
“Security
      Agreement”,
      with
      terms defined in such Security Agreement having the same meanings herein as
      specified therein), between the Debtor and D.B. Zwirn Special Opportunities
      Fund, L.P. (the “Administrative
      Agent”),
      hereby certifies to the Administrative Agent as follows:

     

    Section
      1.    Name.
      The
      exact legal name of the Debtor as that name appears on its Certificate of
      Organization is as follows: PRC Williston LLC.

     

    Section
      2.    Other
      Identifying Factors.
      

     

    (a)    The
      following is a mailing address for the Debtor: PRC Williston LLC, 5100
      Westheimer Road, Suite 200, Houston, Texas 77056.

     

    (b)    The
      following is the type of organization of the Debtor: limited liability
      company.

     

    (c)    The
      following is the jurisdiction of the Debtor’s organization:
      Delaware.

     

    (d)    The
      following is the Debtor’s state issued organizational identification number:
      DE4281692.

     

    Section
      3.    Other
      Names, etc.

     

    (a)    The
      following is a list of all other names (including trade names or similar
      appellations) used by the Debtor, or any other business or organization to
      which
      the Debtor became the successor by merger, consolidation, acquisition, change
      in
      form, nature or jurisdiction of organization or otherwise, now or at any time
      during the past five years: N/A.

     

    (b)    Attached
      hereto as Schedule
      3
      is the
      information required in Section 2 for any other business or organization to
      which the Debtor became the successor by merger, consolidation, acquisition
      of
      assets, change in form, nature or jurisdiction of organization or otherwise,
      now
      or at any time during the past five years.

     

    Section
      4.    Current
      Locations.
      

     

    (a)    The
      following are all locations in the United States of America in which the Debtor
      maintains any books or records relating to any of the Collateral consisting
      of
      accounts, instruments, chattel paper, general intangibles or mobile goods:
      PRC
      Williston LLC, 5100 Westheimer Road, Suite 200, Houston, Texas
      77056.

     

     

     

     

    
      
        
          EXHIBIT
            A

          PRC
            SECURITY AGREEMENT

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)    The
      following are all locations in the United States of America where any of the
      Collateral consisting of inventory or equipment (other than as related to its
      oil and gas properties) is located: North Dakota.

     

    (c)    The
      following are the names and addresses of all Persons or entities other than
      the
      Debtor, such as lessees, consignees, warehousemen or purchasers of chattel
      paper, which have possession or are intended to have possession of any of the
      Collateral consisting of instruments, chattel paper, inventory or equipment:
      N/A.

     

    Section
      5.    Prior
      Locations.
      

     

    Set
      forth
      below is the information required by Section 4(b) or (c) at which, or other
      Person with which, any of the Collateral consisting of inventory or equipment
      (other than as related to its oil and gas properties) has been previously held
      at any time during the past twelve months: N/A.

     

    Section
      6. Unusual
      Transactions.
      All of
      the Collateral has been originated by the Debtor in the ordinary course of
      the
      Debtor’s business or consists of goods which have been acquired by the Debtor in
      the ordinary course from a Person in the business of selling goods of that
      kind.
      N/A

     

    [Remainder
      of Page Intentionally Left Blank]

    
       

       

       

       

       

      
        
          
            EXHIBIT
              A

            PRC
              SECURITY AGREEMENT

          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

    

    IN
      WITNESS WHEREOF,
      intending to be legally bound, the Debtor has caused this Agreement to be duly
      executed as of the date first above written.

     

     

    
      	 	
              PRC
                WILLISTON LLC

               

              By:
                /s/ Wayne P.
                Hall                                      

              Wayne
                P. Hall, Chief Executive Officer

            

    

    

    
 

     

    
       

      
        
          
            EXHIBIT
              A

            PRC
              SECURITY AGREEMENT

          

        

        
          
          

          
            

          

        

        
          
          

        

Schedule
        1

    

    

    Filings
      and Other Actions Required to Perfect Security Interest

    

    File
      UCC-1 with Secretary of State of Delaware.

    

     

     

     

    
 

    
      
        Schedule
          1

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      2

    

    Existing
      Liens

    

    None

     

     

     

     

     

     

     

    
      
        
          Schedule
            2

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    Schedule
      3

    

    Information

    

    None

    
 

     

     

     

     

     

    Schedule
      3Guaranty and Pledge Agreement

    EXHIBIT
      10.12

    

    

    GUARANTY
      AND PLEDGE AGREEMENT

    

    

    DATED
      AS OF

    FEBRUARY
      16, 2007

    
 

    MADE
      BY

    

    

    PETRO
      RESOURCES CORPORATION

    

    

    IN
      FAVOR OF

    

    

    D.B.
      ZWIRN SPECIAL OPPORTUNITIES FUND, L.P.,

    AS
      ADMINISTRATIVE AGENT

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF CONTENTS

     

    Page

     

    
      	ARTICLE I
              Definitions	
              1

            
	Section 1.01	Definitions	
              1

            
	Section 1.02	Other Definitional Provisions	
              3

            
	Section 1.03	Rules of Interpretation	
              4

            
	 	 	 
	ARTICLE II
              Guarantee	
              4

            
	Section 2.01	Guarantee	
              4

            
	Section 2.02	Intentionally Omitted	
              4

            
	Section 2.03	No Subrogation	
              5

            
	Section 2.04	Guaranty Amendments, Etc. with respect
              to the
              Borrower Obligations 	
              5

            
	Section 2.05	Waivers	
              5

            
	Section 2.06	Guaranty Absolute and Unconditional	
              6

            
	Section 2.07	Reinstatement	
              7

            
	Section 2.08	Payments	
              7

            
	 	 	
               

            
	ARTICLE III Grant
              of
              Security Interest	
              8

            
	Section 3.01	Grant of Security Interest	
              8

            
	Section 3.02	Transfer of Pledged Securities	
              8

            
	 	 	
               

            
	ARTICLE IV Representations
              and Warranties	
              8

            
	Section 4.01	Representations in Credit Agreement	
              9

            
	Section 4.02	Title; No Other Liens	
              9

            
	Section 4.03	Perfected First Priority Liens	
              9

            
	Section 4.04	Guarantor Information	
              9

            
	Section 4.05	Pledged Securities	
              9

            
	Section 4.06	Benefit to the Guarantor	
              
                10

              

            
	Section 4.07	Solvency	
              10

            
	 	
            	 
	ARTICLE V
              Covenants	
              10

            
	Section 5.01	Maintenance of Perfected Security Interest;
              Further Documentation	
              10

            
	Section 5.02	Changes in Locations, Name, Etc	
              11

            
	Section 5.03	Pledged Securities	
              11

            
	Section 5.04	Liens	
              12

            
	Section 5.05	Debt	
              12

            
	 	 	
               

            
	ARTICLE VI Remedial
              Provisions	
              12

            
	Section 6.01	Code and Other Remedies	
              12

            
	Section 6.02	Pledged Securities	
              13

            
	Section 6.03	Private Sales of Pledged Securities	
              15

            
	Section 6.04	Waiver; Deficiency	
              16

            
	Section 6.05	Non-Judicial Enforcement	
              16

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      Page

    

    
      	 	 	 
	ARTICLE VII The
              Administrative Agent	
              
                16

              

            
	Section 7.01	Administrative Agent’s Appointment as
              Attorney-in-Fact, Etc	
              
                16

              

            
	Section 7.02	Duty of Administrative Agent	
              
                18

              

            
	Section 7.03	Execution of Financing Statements	
              
                18

              

            
	Section 7.04	Authority of Administrative Agent	
              
                19

              

            
	 	 	
               

            
	ARTICLE VIII Subordination
              of Indebtedness	
              
                19

              

            
	Section 8.01	Subordination of All Guarantor
              Claims	
              
                19

              

            
	Section 8.02	Claims in Bankruptcy	
              19

            
	Section 8.03	Payments Held in Trust	
              
                20

              

            
	Section 8.04	Liens Subordinate	
              
                20

              

            
	Section 8.05	Notation of Records	
              20

            
	 	 	 
	ARTICLE IX
              Miscellaneous	
              20

            
	Section 9.01	Waiver	
              20

            
	Section 9.02	Notices	
              20

            
	Section 9.03	Payment of Expenses, Indemnities,
              Etc	
              21

            
	Section 9.04	Amendments in Writing	
              21

            
	Section 9.05	Successors and Assigns	
              21

            
	Section 9.06	Survival; Revival; Reinstatement	
              21

            
	Section 9.07	Counterparts; Integration;
              Effectiveness	
              22

            
	Section 9.08	Severability	
              22

            
	Section 9.09	Set-Off	
              23

            
	Section 9.10	Governing Law; Submission to
              Jurisdiction	
              23

            
	Section 9.11	Headings	
              24

            
	Section 9.12	Acknowledgments	
              24

            
	Section 9.13	Additional Guarantors and
              Guarantors	
              25

            
	Section 9.14	Releases	
              25

            
	Section 9.15	Acceptance	
              26

            

    

     

    SCHEDULES:

    1    Notice
      Addresses of Guarantor

    2    Description
      of Pledged Securities

    3    Filings
      and Other Actions Required to Perfect Security Interests

    4    Location
      of Jurisdiction of Organization and Chief Executive Office

    5    Debt

    

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    This
      GUARANTY AND PLEDGE AGREEMENT, dated as of February
      16, 2007, is
      made by
PETRO
      RESOURCES CORPORATION,
      a
Delaware
      corporation (the
      “Guarantor”)
      in
      favor of D.B.
      ZWIRN SPECIAL OPPORTUNITIES FUND, L.P.
      as
      administrative agent (in such capacity, together with its successors in such
      capacity, the “Administrative
      Agent”),
      for
      the lenders (the “Lenders”)
      from
      time to time parties to the Credit Agreement, dated of even date herewith (as
      amended, supplemented or otherwise modified from time to time, the “Credit
      Agreement”),
      among
      PRC Williston LLC (the “Borrower”),
      the
      Lenders and the Administrative Agent.

     

    R
      E C I T A L S

     

    A.    The
      Borrower has entered into that certain Credit Agreement dated as of the date
      hereof.

     

    B.    It
      is a
      condition precedent to the obligation of the Lenders to make their respective
      extensions of credit to the Borrower under the Credit Agreement that the
      Guarantor shall have executed and delivered this Agreement to the Administrative
      Agent for the ratable benefit of the Lenders.

     

    C.    Now,
      therefore, in consideration of the premises herein and to induce the
      Administrative Agent and the Lenders to enter into the Credit Agreement and
      to
      induce the Lenders to make their respective extensions of credit to the Borrower
      thereunder, the Guarantor hereby agrees with the Administrative Agent, for
      the
      ratable benefit of the Lenders, as follows:

     

    ARTICLE
      I

    Definitions

     

    Section
      1.01  Definitions.

     

    (a)  Unless
      otherwise defined herein, terms defined in the Credit Agreement and used herein
      have the meanings given to them in the Credit Agreement, and all uncapitalized
      terms which are defined in the UCC on the date hereof are used herein as so
      defined.

     

    (b)  The
      following terms have the following meanings:

     

    “Agreement”
means
      this Guaranty and Pledge Agreement, as the same may be amended, restated,
      supplemented or otherwise modified from time to time.

     

    “Bankruptcy
      Code”
means
      title 11, United States Code, as amended from time to time.

     

    “Borrower
      Obligations”
means
      the collective reference to the payment and performance of all Indebtedness
      and
      all obligations of the Borrower and its Subsidiaries under the Guaranteed
      Documents, including, without limitation, the unpaid principal of and interest
      on the Loans and all other obligations and liabilities of the Borrower and
      its
      Subsidiaries (including, without limitation, interest accruing at the then
      applicable rate provided in the Credit Agreement after the maturity of the
      Loans
      and interest accruing after the filing of any petition in bankruptcy, or the
      commencement of any insolvency, reorganization or like proceeding, relating
      to
      the Borrower, whether or not a claim for post-filing or post-petition interest
      is allowed in such proceeding) to the Guaranteed Creditors, whether direct
      or
      indirect, absolute or contingent, due or to become due, or now existing or
      hereafter incurred, which

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    may
      arise
      under, out of, or in connection with, the Guaranteed Documents, whether on
      account of principal, interest, reimbursement obligations, payments in respect
      of an early termination date, fees, indemnities, costs, expenses or otherwise
      (including, without limitation, all fees and disbursements of counsel to the
      Guaranteed Creditors that are required to be paid by the Borrower pursuant
      to
      the terms of any Guaranteed Documents).

     

    “Collateral”
has
      the
      meaning assigned such term in Section
      3.01.

     

    “Guaranteed
      Creditors”
means
      the collective reference to the Administrative Agent, the Lenders and the
      Affiliates of Lenders that are parties to Guaranteed Swap
      Agreements.

     

    “Guaranteed
      Documents”
means
      the collective reference to the Credit Agreement, the other Loan Documents,
      each
      Guaranteed Swap Agreement and any other document made, delivered or given in
      connection with any of the foregoing.

     

    “Guaranteed
      Swap Agreement”
means
      any Swap Agreement between the Borrower or any of its Subsidiaries and any
      Lender or any Affiliate of any Lender while such Person (or, in the case of
      an
      Affiliate of a Lender, the Person affiliated therewith) is a Lender regardless
      of when such Swap Agreement was entered into. For the avoidance of doubt, a
      Swap
      Agreement ceases to be a Guaranteed Swap Agreement if the Person that is the
      counterparty to the Borrower or one of its Subsidiaries under a Swap Agreement
      ceases to be a Lender under the Credit Agreement (or, in the case of an
      Affiliate of a Lender, the Person affiliated therewith ceases to be a Lender
      under the Credit Agreement).

     

    “Guarantor
      Obligations”
means
      with respect to the Guarantor, the collective reference to (a) the Borrower
      Obligations and (b) all obligations and liabilities of the Guarantor which
      may
      arise under or in connection with any Guaranteed Document to which the Guarantor
      is a party, in each case, whether on account of principal, interest, guarantee
      obligations, reimbursement obligations, payments in respect of an early
      termination date, fees, indemnities, costs, expenses or otherwise (including,
      without limitation, all fees and disbursements of counsel to any Guaranteed
      Creditor under any Guaranteed Document).

     

    “Guarantor”
has
      the
      meaning given such term in the opening paragraph hereof.

     

    “Issuers”
means
      the collective reference to each issuer of a Pledged Security.

     

    “LLC”
means,
      with respect to the Guarantor, each limited liability company described or
      referred to in Schedule 2 in which the Guarantor has an interest.

     

    “LLC
      Agreement”
means,
      with respect to the Guarantor, each operating agreement relating to an LLC,
      as
      each agreement has heretofore been, and may hereafter be, amended, restated,
      supplemented or otherwise modified from time to time.

     

    “Obligations”
means:
      (a) in the case of the Borrower, the Borrower Obligations and (b) in the case
      of
      the Guarantor, its Guarantor Obligations.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    “Guarantor
      Claims”
has
      the
      meaning assigned to such term in Section 8.01.

     

    “Partnership”
means,
      with respect to the Guarantor, each partnership described or referred to in
      Schedule 2 in which the Guarantor has an interest.

     

    “Partnership
      Agreement”
means,
      with respect to the Guarantor, each partnership agreement governing a
      Partnership, as each such agreement has heretofore been, and may hereafter
      be,
      amended, restated, supplemented or otherwise modified.

     

    “Pledged
      LLC Interests”
means,
      with respect to the Guarantor, all right, title and interest of the Guarantor
      as
      a member of each LLC and all right, title and interest of the Guarantor in,
      to
      and under each LLC Agreement.

     

    “Pledged
      Partnership Interests”
means,
      with respect to the Guarantor, all right, title and interest of the Guarantor
      as
      a limited or general partner in all Partnerships and all right, title and
      interest of the Guarantor in, to and under the Partnership
      Agreements.

     

    “Pledged
      Securities”
means:
      (a) the Equity Interests described or referred to in Schedule 2 (as the same
      may
      be supplemented from time to time pursuant to a Supplement); and (b) (i) the
      certificates or instruments, if any, representing such Equity Interests, (ii)
      all dividends (cash, Equity Interests or otherwise), cash, instruments, rights
      to subscribe, purchase or sell and all other rights and Property from time
      to
      time received, receivable or otherwise distributed in respect of or in exchange
      for any or all of such securities, (iii) all replacements, additions to and
      substitutions for any of the Property referred to in this definition, including,
      without limitation, claims against third parties, (iv) the proceeds, interest,
      profits and other income of or on any of the Property referred to in this
      definition, (v) all security entitlements in respect of any of the foregoing,
      if
      any and (vi) all books and records relating to any of the Property referred
      to
      in this definition.

     

    “Proceeds”
means
      all “proceeds” as such term is defined in Section 9-102(64) of
      the
      Uniform Commercial Code in effect in the State of New York on the date hereof
      and, in any event, shall include, without limitation, all dividends or other
      income from the Pledged Securities, collections thereon or distributions or
      payments with respect thereto.

     

    “Securities
      Act”
shall
      mean the Securities Act of 1933, as amended.

     

    “UCC”
means
      the Uniform Commercial Code as from time to time in effect in the State of
      New
      York; provided, however, that, in the event that, by reason of mandatory
      provisions of law, any of the attachment, perfection or priority of the
      Administrative Agent’s and the Guaranteed Creditors’ security interest in any
      Collateral is governed by the Uniform Commercial Code as in effect in a
      jurisdiction other than the State of New York, the term “UCC” shall mean the
      Uniform Commercial Code as in effect in such other jurisdiction for purposes
      of
      the provisions hereof relating to such attachment, perfection, the effect
      thereof or priority and for purposes of definitions related to such
      provisions.

     

    Section
      1.02  Other
      Definitional Provisions.
      Where
      the context requires, terms relating to the Collateral or any part thereof,
      when
      used in relation to a Guarantor, refer to the Guarantor’s Collateral or the
      relevant part thereof.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    Section
      1.03  Rules
      of Interpretation.
      Section
      1.03 and Section 1.04 of the Credit Agreement are hereby incorporated herein
      by
      reference and shall apply to this Agreement, mutatis
      mutandis.

     

    ARTICLE
      II

    Guarantee

     

    Section
      2.01  Guarantee.

     

    (a)  The
      Guarantor hereby unconditionally and irrevocably, guarantees to the Guaranteed
      Creditors and each of their respective successors, indorsees, transferees and
      assigns, the prompt and complete payment in cash and performance by the Borrower
      when due (whether at the stated maturity, by acceleration or otherwise) of
      the
      Borrower Obligations. This is a guarantee of payment and not collection and
      the
      liability of the Guarantor is primary and not secondary.

     

    (b)  Anything
      herein or in any other Loan Document to the contrary notwithstanding, the
      maximum liability of the Guarantor hereunder and under the other Loan Documents
      shall in no event exceed the amount which can be guaranteed by the Guarantor
      under applicable federal and state laws relating to the insolvency of debtors
      (after giving effect to the right of contribution established in Error!
      Reference source not found.).

     

    (c)  The
      Guarantor agrees that the Borrower Obligations may at any time and from time
      to
      time exceed the amount of the liability of the Guarantor hereunder without
      impairing the guarantee contained in this ARTICLE
      II
      or
      affecting the rights and remedies of any Guaranteed Creditor
      hereunder.

     

    (d)  The
      Guarantor agrees that if the maturity of the Borrower Obligations is accelerated
      by bankruptcy or otherwise, such maturity shall also be deemed accelerated
      for
      the purpose of this guarantee without demand or notice to the Guarantor. The
      guarantee contained in this ARTICLE
      II
      shall
      remain in full force and effect until all the Borrower Obligations shall have
      been satisfied by payment in full in cash and all of the Commitments are
      terminated, notwithstanding that from time to time during the term of the Credit
      Agreement, no Borrower Obligations may be outstanding.

     

    (e)  No
      payment made by any Person (other than a payment made by the Guarantor) or
      received or collected by any Guaranteed Creditor from any Person (other than
      a
      payment received or collected from the Guarantor) by virtue of any action or
      proceeding or any set-off or appropriation or application, at any time or from
      time to time in reduction of or in payment of the Borrower Obligations shall
      be
      deemed to modify, reduce, release or otherwise affect the liability of the
      Guarantor hereunder which shall, notwithstanding any such payment (other than
      any payment made by the Guarantor in respect of the Borrower Obligations or
      any
      payment received or collected from the Guarantor in respect of the Borrower
      Obligations), remain liable for the Borrower Obligations up to the maximum
      liability of the Guarantor hereunder until the Borrower Obligations are paid
      in
      full in cash and all of the Commitments are terminated.

     

    Section
      2.02  Intentionally
      Omitted.
      

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    Section
      2.03  No
      Subrogation.
      Notwithstanding any payment made by the Guarantor hereunder or any set-off
      or
      application of funds of the Guarantor by any Guaranteed Creditor, the Guarantor
      shall not be entitled to be subrogated to any of the rights of any Guaranteed
      Creditor against the Borrower or any other guarantor or any collateral security
      or guarantee or right of offset held by any Guaranteed Creditor for the payment
      of the Borrower Obligations, nor shall the Guarantor seek or be entitled to
      seek
      any indemnity, exoneration, participation, contribution or reimbursement from
      the Borrower or any other Guarantor in respect of payments made by the Guarantor
      hereunder, until all amounts owing to the Guaranteed Creditors by the Borrower
      on account of the Borrower Obligations are irrevocably and indefeasibly paid
      in
      full in cash and all of the Commitments are terminated. If any amount shall
      be
      paid to the Guarantor on account of such subrogation rights at any time when
      all
      of the Borrower Obligations shall not have been irrevocably and indefeasibly
      paid in full in cash, such amount shall be held by the Guarantor in trust for
      the Guaranteed Creditors, and shall, forthwith upon receipt by the Guarantor,
      be
      turned over to the Administrative Agent in the exact form received by the
      Guarantor (duly indorsed by the Guarantor to the Administrative Agent, if
      required), to be applied against the Borrower Obligations, whether matured
      or
      unmatured, in accordance with Section 11.02(c) of the Credit
      Agreement.

     

    Section
      2.04  Guaranty
      Amendments, Etc. with respect to the Borrower Obligations.
      The
      Guarantor shall remain obligated hereunder, and the Guarantor’s obligations
      hereunder shall not be released, discharged or otherwise affected,
      notwithstanding that, without any reservation of rights against the Guarantor
      and without notice to, demand upon or further assent by the Guarantor (which
      notice, demand and assent requirements are hereby expressly waived by the
      Guarantor), (a)
      any
      demand for payment of any of the Borrower Obligations made by any Guaranteed
      Creditor may be rescinded by such Guaranteed Creditor or otherwise and any
      of
      the Borrower Obligations continued; (b)
      the
      Borrower Obligations, the liability of any other Person upon or for any part
      thereof or any collateral security or guarantee therefor or right of offset
      with
      respect thereto, may, from time to time, in whole or in part, be renewed,
      extended, amended, modified, accelerated, compromised, waived, surrendered
      or
      released by, or any indulgence or forbearance in respect thereof granted by,
      any
      Guaranteed Creditor; (c)
      any
      Guaranteed Document may be amended, modified, supplemented or terminated, in
      whole or in part, as the Guaranteed Creditors may deem advisable from time
      to
      time; (d)
      any
      collateral security, guarantee or right of offset at any time held by any
      Guaranteed Creditor for the payment of the Borrower Obligations may be sold,
      exchanged, waived, surrendered or released; (e)
      any
      additional guarantors, makers or endorsers of the Borrower’s Obligations may
      from time to time be obligated on the Borrower’s Obligations or any additional
      security or collateral for the payment and performance of the Borrower’s
      Obligations may from time to time secure the Borrower’s Obligations; or
(f)
      any
      other event shall occur which constitutes a defense or release of sureties
      generally. No Guaranteed Creditor shall have any obligation to protect, secure,
      perfect or insure any Lien at any time held by it as security for the Borrower
      Obligations or for the guarantee contained in this ARTICLE
      II
      or any
      Property subject thereto.

     

    Section
      2.05  Waivers.
      The
      Guarantor hereby waives any and all notice of the creation, renewal, extension
      or accrual of any of the Borrower Obligations and notice of or proof of reliance
      by any Guaranteed Creditor upon the guarantee contained in this ARTICLE
      II
      or
      acceptance of the guarantee contained in this ARTICLE
      II;
      the
      Borrower Obligations, and any of them, shall conclusively be deemed to have
      been
      created, contracted or incurred, or renewed, extended, amended or waived, in
      reliance upon the guarantee contained in this 

     

    
      
        
        

      

      
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      ARTICLE
        II
        and no
        notice of creation of the Borrower Obligations or any extension of credit
        already or hereafter contracted by or extended to the Borrower need be given
        to
the Guarantor;
        and all dealings between the Borrower and the Guarantor, on the one hand,
        and
        the Guaranteed Creditors, on the other hand, likewise shall be conclusively
        presumed to have been had or consummated in reliance upon the guarantee
        contained in this ARTICLE
        II.
        The
        Guarantor waives diligence, presentment, protest, demand for payment and
        notice
        of default or nonpayment to or upon the Borrower or the Guarantor with respect
        to the Borrower Obligations.

    

     

    Section
      2.06  Guaranty
      Absolute and Unconditional.
      

     

    (a)  The
      Guarantor understands and agrees that the guarantee contained in this
ARTICLE
      II
      is, and
      shall be construed as, a continuing, completed, absolute and unconditional
      guarantee of payment, and the Guarantor hereby waives any defense of a surety
      or
      guarantor or any other Guarantor on any obligations arising in connection with
      or in respect of any of the following and hereby agrees that its obligations
      hereunder shall not be discharged or otherwise affected as a result of any
      of
      the following: 

     

    (i)  the
      invalidity or unenforceability of any Guaranteed Document, any of the Borrower
      Obligations or any other collateral security therefor or guarantee or right
      of
      offset with respect thereto at any time or from time to time held by any
      Guaranteed Creditor;

     

    (ii)  any
      defense, set-off or counterclaim (other than a defense of payment or
      performance) which may at any time be available to or be asserted by the
      Borrower or any other Person against any Guaranteed Creditor;

     

    (iii)  the
      insolvency, bankruptcy arrangement, reorganization, adjustment, composition,
      liquidation, disability, dissolution or lack of power of the Borrower or any
      other guarantor or any other Person at any time liable for the payment of all
      or
      part of the Obligations, including any discharge of, or bar or stay against
      collecting, any Obligation (or any part of them or interest therein) in or
      as a
      result of such proceeding;

     

    (iv)  any
      sale,
      lease or transfer of any or all of the assets of the Borrower, or any changes
      in
      the shareholders of the Borrower;

     

    (v)  any
      change in the corporate existence (including its constitution, laws, rules,
      regulations or power), structure or ownership of the Guarantor or in the
      relationship between the Borrower and the Guarantor;

     

    (vi)  the
      fact
      that any Collateral or Lien contemplated or intended to be given, created or
      granted as security for the repayment of the Obligations shall not be properly
      perfected or created, or shall prove to be unenforceable or subordinate to
      any
      other Lien, it being recognized and agreed by the Guarantor that it is not
      entering into this Agreement in reliance on, or in contemplation of the benefits
      of, the validity, enforceability, collectability or value of any of the
      Collateral for the Obligations;

     

    (vii)  the
      absence of any attempt to collect the Obligations or any part of them from
      the
      Guarantor;

     

    
      
        
        

      

      
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    (viii)  (A)
      any
      Guaranteed Creditor’s election, in any proceeding instituted under chapter 11 of
      the Bankruptcy Code, of the application of Section 1111(b)(2) of the Bankruptcy
      Code; (B) any borrowing or grant of a Lien by the Borrower, as
      debtor-in-possession, or extension of credit, under Section 364 of the
      Bankruptcy Code; (C) the disallowance, under Section 502 of the Bankruptcy
      Code,
      of all or any portion of any Guaranteed Creditor’s claim (or claims) for
      repayment of the Obligations; (D) any use of cash collateral under Section
      363
      of the Bankruptcy Code; (E) any agreement or stipulation as to the provision
      of
      adequate protection in any bankruptcy proceeding; (F) the avoidance of any
      Lien
      in favor of the Guaranteed Creditors or any of them for any reason; or (G)
      failure by any Guaranteed Creditor to file or enforce a claim against the
      Borrower or its estate in any bankruptcy or insolvency case or proceeding;
      or

     

    (ix)  any
      other
      circumstance or act whatsoever, including any action or omission of the type
      described in Section
      2.04
      (with or
      without notice to or knowledge of the Borrower or the Guarantor), which
      constitutes, or might be construed to constitute, an equitable or legal
      discharge of the Borrower for the Borrower Obligations, or of the Guarantor
      under the guarantee contained in this ARTICLE
      II,
      in
      bankruptcy or in any other instance.

     

    (b)  When
      making any demand hereunder or otherwise pursuing its rights and remedies
      hereunder against the Guarantor, any Guaranteed Creditor may, but shall be
      under
      no obligation to, join or make a similar demand on or otherwise pursue or
      exhaust such rights and remedies as it may have against the Borrower or any
      other Person or against any collateral security or guarantee for the Borrower
      Obligations or any right of offset with respect thereto, and any failure by
      any
      Guaranteed Creditor to make any such demand, to pursue such other rights or
      remedies or to collect any payments from the Borrower or any other Person or
      to
      realize upon any such collateral security or guarantee or to exercise any such
      right of offset, or any release of the Borrower or any other Person or any
      such
      collateral security, guarantee or right of offset, shall not relieve the
      Guarantor of any obligation or liability hereunder, and shall not impair or
      affect the rights and remedies, whether express, implied or available as a
      matter of law, of any Guaranteed Creditor against the Guarantor. For the
      purposes hereof, “demand” shall include the commencement and continuance of any
      legal proceedings.

     

    Section
      2.07  Reinstatement.
      The
      guarantee contained in this ARTICLE
      II
      shall
      continue to be effective, or be reinstated, as the case may be, if at any time
      payment, or any part thereof, of any of the Borrower Obligations is rescinded
      or
      must otherwise be restored or returned by any Guaranteed Creditor upon the
      insolvency, bankruptcy, dissolution, liquidation or reorganization of the
      Borrower or the Guarantor, or upon or as a result of the appointment of a
      receiver, intervenor or conservator of, or trustee or similar officer for,
      the
      Borrower or the Guarantor or any substantial part of its Property, or otherwise,
      all as though such payments had not been made.

     

    Section
      2.08  Payments.
      The
      Guarantor hereby guarantees that payments hereunder will be paid to the
      Administrative Agent, for the ratable benefit of the Guaranteed Creditors,
      without set-off, deduction or counterclaim, in dollars, in immediately available
      funds, at the offices of the Administrative Agent specified in Section 13.01
      of
      the Credit Agreement.

     

    
      
        
        

      

      
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    ARTICLE
      III

    Grant
      of Security Interest

     

    Section
      3.01  Grant
      of Security Interest.
      The
      Guarantor hereby pledges, assigns and transfers to the Administrative Agent,
      and
      hereby grants to the Administrative Agent, for the ratable benefit of the
      Guaranteed Creditors, a security interest in all of the following Property
      now
      owned or at any time hereafter acquired by the Guarantor or in which the
      Guarantor now has or at any time in the future may acquire any right, title
      or
      interest (collectively, the “Collateral”),
      as
      collateral security for the prompt and complete payment and performance when
      due
      (whether at the stated maturity, by acceleration or otherwise) of the
      Guarantor’s Obligations:

     

    (1)  all
      Pledged Securities;

     

    (2)  all
      books
      and records pertaining to the Collateral; and

     

    (3)  to
      the
      extent not otherwise included, all Proceeds and products of any and all of
      the
      foregoing, all Supporting Obligations (as defined in the UCC) in respect of
      any
      of the foregoing and all collateral security and guarantees given by any Person
      with respect to any of the foregoing.

     

    Section
      3.02  Transfer
      of Pledged Securities.
      To the
      extent the Pledged Securities constitute “securities” under Article 8 of the
      UCC, all certificates or instruments representing or evidencing such Pledged
      Securities shall be delivered to and held by the Administrative Agent or a
      Person designated by the Administrative Agent and shall be in suitable form
      for
      transfer by delivery, or shall be accompanied by duly executed instruments
      of
      transfer or assignment in blank, and accompanied by any required transfer tax
      stamps to effect the pledge and delivery of the Pledged Securities to the
      Administrative Agent. Notwithstanding the preceding sentence, at the
      Administrative Agent’s reasonable discretion, to the extent the Pledged
      Securities constitute “securities” under Article 8 of the UCC, all such Pledged
      Securities must be delivered or transferred in such manner as to permit the
      Administrative Agent to be a “protected purchaser” to the extent of its security
      interest as provided in Section 8-303 of the UCC (if the Administrative Agent
      otherwise qualifies as a protected purchaser). During the continuance of an
      Event of Default, the Administrative Agent shall have the right, at any time
      in
      its discretion and without notice, to transfer to or to register in the name
      of
      the Administrative Agent or any of its nominees any or all of the Pledged
      Securities, subject only to the revocable rights specified in Section
      6.03.
      In
      addition, during the continuance of an Event of Default, the Administrative
      Agent shall have the right at any time to exchange certificates or instruments
      representing or evidencing Pledged Securities for certificates or instruments
      of
      smaller or larger denominations. 

     

    ARTICLE
      IV

    Representations
      and Warranties

     

    To
      induce
      the Administrative Agent and the Lenders to enter into the Credit Agreement
      and
      to induce the Lenders to make their respective extensions of credit to the
      Borrower thereunder and to induce the Lenders (and their Affiliates) to enter
      into Swap Agreements with the Borrower and its Subsidiaries, the Guarantor
      hereby represents and warrants to the Administrative Agent and each Lender
      that:

     

    
      
        
        

      

      
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    Section
      4.01  Representations
      in Credit Agreement.
      The
      Guarantor hereby incorporates by reference the representations and warranties
      set forth in Sections 8.01, 8.02, 803 and 8.07 of the Credit Agreement
mutatis
      mutandis
      and
      makes such representations and warranties as of the date hereof, as if they
      were
      fully set forth herein.

     

    Section
      4.02  Title;
      No Other Liens.
      Except
      for the security interest granted to the Administrative Agent for the ratable
      benefit of the Guaranteed Creditors pursuant to this Agreement, the Guarantor
      is
      the record and beneficial owner of its respective items of the Collateral free
      and clear of any and all Liens and has rights in or the power to transfer each
      item of the Collateral in which a Lien is granted by it hereunder, free and
      clear of any Lien. No financing statement or other public notice with respect
      to
      all or any part of the Collateral is on file or of record in any public office,
      except such as have been filed in favor of the Administrative Agent, for the
      ratable benefit of the Guaranteed Creditors, pursuant to this Agreement or
      the
      other Security Instruments.

     

    Section
      4.03  Perfected
      First Priority Liens.
      Subject
      to applicable laws concerning possession and perfection of uncertificated
      securities, the security interests granted pursuant to this Agreement
(a)
      upon the
      completion of the filings and the other actions specified on Schedule 3
      constitute valid perfected security interests in all of the Collateral in favor
      of the Administrative Agent, for the ratable benefit of the Guaranteed
      Creditors, as collateral security for the Guarantor’s Obligations, enforceable
      in accordance with the terms hereof against all creditors of the Guarantor
      and
      any Persons purporting to purchase any Collateral from the Guarantor and
(b)
      are
      prior to all other Liens on the Collateral in existence on the date
      hereof.

     

    Section
      4.04  Guarantor
      Information.
      On the
      date hereof, the correct legal name of the Guarantor, all names and trade names
      that the Guarantor has used in the last five years, the Guarantor's jurisdiction
      of organization and each jurisdiction of organization of the Guarantor over
      the
      last five years, organizational number, taxpayer identification number, and
      the
      location(s) of the Guarantor's chief executive office or sole place of business
      over the last five years are specified on Schedule 4.

     

    Section
      4.05  Pledged
      Securities.
      

     

    (a)  The
      Pledged Securities required to be pledged hereunder and under the Credit
      Agreement by the Guarantor are listed in Schedule 2. The Pledged Securities
      pledged by the Guarantor hereunder constitute all the issued and outstanding
      shares of all classes of the Equity Interests of each Issuer owned by the
      Guarantor. All of the Pledged Securities have been duly and validly issued
      and
      are fully paid and nonassessable; and the Guarantor is the record and beneficial
      owner of, and has good title to, the Pledged Securities pledged by it hereunder,
      free of any and all Liens or options in favor of, or claims of, any other
      Person, except the security interest created by this Agreement, and has rights
      in or the power to transfer the Pledged Securities in which a Lien is granted
      by
      it hereunder, free and clear of any Lien.

     

    (b)  There
      are
      no restrictions on transfer (that have not been waived or otherwise consented
      to) in the LLC Agreement governing any Pledged LLC Interest and the Partnership
      Agreement governing any Pledged Partnership Interest or any other agreement
      relating thereto which would limit or restrict (i)
      the
      grant of a security interest in the Pledged LLC Interests and the Pledged
      Partnership Interests, (ii)
      the
      perfection of such security interest or (iii)
      the
      exercise of remedies in respect of such perfected security interest in the
      Pledged LLC Interests and the Pledged Partnership Interests, in each case,
      as
      contemplated by this Agreement. Upon the exercise of remedies in respect of
      the
      Pledged LLC Interests and the Pledged Partnership Interests, a transferee or
      assignee of a membership interest or partnership interest, as the case may
      be,
      of such LLC or Partnership, as the case may be, shall become a member or
      partner, as the case may be, of such LLC or Partnership, as the case may be,
      entitled to participate in the management thereof (subject to any limitations
      in
      any partnership agreement applicable to management of the partnership by a
      limited partner) and, upon the transfer of the entire interest of the Guarantor,
      the Guarantor shall cease to be a member or partner, as the case may
      be.

     

    
      
        
        

      

      
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    Section
      4.06  Benefit
      to the Guarantor.
      The
      Borrower is a member of an affiliated group of companies that includes the
      Guarantor, and the Borrower and the Guarantor are engaged in related businesses.
      The Borrower is the wholly-owned subsidiary of the Guarantor and the Guarantor’s
      guaranty and surety obligations pursuant to this Agreement reasonably may be
      expected to benefit, directly or indirectly, it; and it has determined that
      this
      Agreement is necessary and convenient to the conduct, promotion and attainment
      of the business of the Guarantor and the Borrower.

     

    Section
      4.07  Solvency.
      The
      Guarantor (a)
      is not
      insolvent as of the date hereof and will not be rendered insolvent as a result
      of this Agreement (after giving effect to Error!
      Reference source not found.),
      (b)
      is not
      engaged in a business or a transaction, or about to engage in a business or
      a
      transaction, for which any Property remaining with it constitutes unreasonably
      small capital, and (c)
      does not
      intend to incur, or believe it will incur, Debt that will be beyond its ability
      to pay as such Debt matures.

     

    ARTICLE
      V

    Covenants

     

    The
      Guarantor covenants and agrees with the Administrative Agent and the Lenders
      that, from and after the date of this Agreement until the Borrower Obligations
      shall have been paid in full in cash and all of the Commitments shall have
      terminated:

     

    Section
      5.01  Maintenance
      of Perfected Security Interest; Further Documentation.
      The
      Guarantor agrees that:

     

    (a)  it
      shall
      maintain the security interest created by this Agreement as a perfected security
      interest having at least the priority described in Section
      4.03
      and
      shall defend such security interest against the claims and demands of all
      Persons whomsoever.

     

    (b)  it
      will
      furnish to the Administrative Agent from time to time statements and schedules
      further identifying and describing the Collateral and such other reports in
      connection with the Collateral as the Administrative Agent may reasonably
      request, all in reasonable detail.

     

    (c)  At
      any
      time and from time to time, upon the written request of the Administrative
      Agent, and at the sole expense of the Guarantor, it will promptly and duly
      execute and deliver, and have recorded, such further instruments and documents
      and take such further actions as the Administrative Agent may reasonably deem
      necessary for the purpose of obtaining or preserving the full benefits of this
      Agreement and of the rights and powers herein granted, including, without
      limitation, the delivery of certificated securities and the filing of any
      financing or continuation statements under the UCC (or other similar laws)
      in
      effect in any jurisdiction with respect to the security interests created
      hereby.

     

    
      
        
        

      

      
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    Section
      5.02  Changes
      in Locations, Name, Etc.
      The
      Guarantor recognizes that financing statements pertaining to the Collateral
      have
      been or may be filed where the Guarantor maintains any Collateral or is
      organized. Without limitation of Section 9.01(n) of the Credit Agreement or
      any
      other covenant herein, the Guarantor will not cause or permit any change in
      its
(a)
      corporate name or in any trade name used to identify it in the conduct of its
      business or in the ownership of its Properties, (b)
      the
      location of its chief executive office or principal place of business,
(c)
      its
      identity or corporate structure or in the jurisdiction in which it is
      incorporated or formed, (d)
      its
      jurisdiction of organization or its organizational identification number in
      such
      jurisdiction of organization or (e)
      its
      federal taxpayer identification number, unless, in each case, the Guarantor
      shall have first (i)
      notified
      the Administrative Agent of such change at least thirty (30) days prior to
      the
      effective date of such change, and (ii)
      taken
      all action reasonably requested by the Administrative Agent for the purpose
      of
      maintaining the perfection and priority of the Administrative Agent's security
      interests under this Agreement. In any notice furnished pursuant to this
Section
      5.02,
      the
      Guarantor will expressly state in a conspicuous manner that the notice is
      required by this Agreement and contains facts that may require additional
      filings of financing statements or other notices for the purposes of continuing
      perfection of the Administrative Agent's security interest in the Collateral.
      At
      the request of the Administrative Agent, on or prior to the occurrence of such
      event, the Guarantor shall cause the Borrower to provide to the Administrative
      Agent and the Lenders an opinion of counsel, in form and substance reasonably
      satisfactory to the Administrative Agent, to the effect that such event will
      not
      impair the validity of the security interests hereunder, the perfection and
      priority thereof, the enforceability of the Loan Documents, and such other
      matters as may be reasonably requested by the Administrative Agent.

     

    Section
      5.03  Pledged
      Securities.

     

    (a)  If
      the
      Guarantor shall become entitled to receive or shall receive any stock
      certificate (including, without limitation, any certificate representing a
      stock
      dividend or a distribution in connection with any reclassification, increase
      or
      reduction of capital or any certificate issued in connection with any
      reorganization), option or rights in respect of the Equity Interests of any
      Issuer, whether in addition to, in substitution of, as a conversion of, or
      in
      exchange for, any of the Pledged Securities, or otherwise in respect thereof,
      the Guarantor shall accept the same as the agent of the Guaranteed Creditors,
      hold the same in trust for the Guaranteed Creditors, segregated from other
      Property of the Guarantor, and deliver the same forthwith to the Administrative
      Agent in the exact form received, duly indorsed by the Guarantor to the
      Administrative Agent, if required, together with an undated stock power covering
      such certificate duly executed in blank by the Guarantor and with, if the
      Administrative Agent so requests, signature guaranteed, to be held by the
      Administrative Agent, subject to the terms hereof, as additional collateral
      security for the Obligations.

     

    
      
        
        

      

      
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    (b)  Without
      the prior written consent of the Administrative Agent, the Guarantor will not
      (i)
      unless
      otherwise expressly permitted hereby or under the other Loan Documents, vote
      to
      enable, or take any other action to permit, any Issuer to issue any Equity
      Interests of any nature or to issue any other securities convertible into or
      granting the right to purchase or exchange for any Equity Interests of any
      nature of any Issuer, (ii)
      sell,
      assign, transfer, exchange, or otherwise dispose of, or grant any option with
      respect to, the Pledged Securities or Proceeds thereof (except pursuant to
      a
      transaction expressly permitted by the Credit Agreement), (iii)
      create,
      incur or permit to exist any Lien or option in favor of, or any claim of any
      Person with respect to, any of the Pledged Securities or Proceeds thereof,
      or
      any interest therein, except for the security interests created by this
      Agreement or (iv)
      enter
      into any agreement or undertaking restricting the right or ability of the
      Guarantor or the Administrative Agent to sell, assign or transfer any of the
      Pledged Securities or Proceeds thereof.

     

    (c)  The
      Guarantor shall furnish to the Administrative Agent such stock powers and other
      instruments as may be required by the Administrative Agent to assure the
      transferability of the Pledged Securities when and as often as may be reasonably
      requested by the Administrative Agent.

     

    (d)  The
      Pledged Securities will at all times constitute not less than 100% of the Equity
      Interests of the Issuer thereof owned by the Guarantor. The Guarantor will
      not
      permit any Issuer of any of the Pledged Securities to issue any new shares
      of
      any class of Equity Interests of such Issuer without the prior written consent
      of the Administrative Agent.

     

    Section
      5.04  Liens.
      The
      Guarantor will not create, incur, assume or permit to exist any Lien on any
      of
      its Properties (now owned or hereafter acquired) except (a) Liens securing
      the
      payment of any Borrower Obligations and (b) Excepted Liens.

     

    Section
      5.05  Debt.
      The
      Gurantor will not incur, create, assume or suffer to exist any Debt,
      except

     

    (a)  the
      guaranty provided hereunder; 

     

    (b)  accounts
      payable and accrued expenses, liabilities or other obligations to pay the
      deferred purchase price of Property or services, from time to time incurred
      in
      the ordinary course of business that are not greater than sixty (60) days past
      the date of receipt of the invoice or delinquent or that are being contested
      in
      good faith by appropriate action and for which adequate reserves have been
      maintained in accordance with GAAP; and

     

    (c)  Debt
      existing on the Effective Date and set forth on Schedule 5 hereto.

     

    
      
        
        

      

      
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    ARTICLE
      VI

    Remedial
      Provisions

     

    Section
      6.01  Code
      and Other Remedies.
      

     

    (a)  Upon
      the
      occurrence and during the continuance of an Event of Default, the Administrative
      Agent, on behalf of the Guaranteed Creditors, may exercise, in addition to
      all
      other rights and remedies granted to them in this Agreement, the other Loan
      Documents and in any other instrument or agreement securing, evidencing or
      relating to the Obligations, all rights and remedies of a secured party under
      the UCC or any other applicable law or otherwise available at law or equity.
      Without limiting the generality of the foregoing, the Administrative Agent,
      without demand of performance or other demand, presentment, protest,
      advertisement or notice of any kind (except any notice required by law referred
      to below) to or upon the Guarantor or any other Person (all and each of which
      demands, defenses, advertisements and notices are hereby waived), may in such
      circumstances forthwith collect, receive, appropriate and realize upon the
      Collateral, or any part thereof, and/or may forthwith sell, assign, give option
      or options to purchase, or otherwise dispose of and deliver the Collateral
      or
      any part thereof (or contract to do any of the foregoing), at public or private
      sale or sales, at any exchange, broker’s board or office of any Guaranteed
      Creditor or elsewhere upon such terms and conditions as it may deem advisable
      and at such prices as it may deem best, for cash or on credit or for future
      delivery without assumption of any credit risk. Upon any such sale or transfer,
      the Administrative Agent shall have the right to deliver, assign and transfer
      to
      the purchaser or transferee thereof the Collateral so sold or transferred.
      The
      Administrative Agent shall apply the net proceeds of any action taken by it
      pursuant to this Section
      6.01,
      after
      deducting all reasonable costs and expenses of every kind incurred in connection
      therewith or incidental to the care or safekeeping of any of the Collateral
      or
      in any way relating to the Collateral or the rights of the Administrative Agent
      and the Guaranteed Creditors hereunder, including, without limitation,
      reasonable attorneys’ fees and disbursements, to the payment in whole or in part
      of the Obligations, in accordance with Section 11.02(c) of the Credit Agreement,
      and only after such application and after the payment by the Administrative
      Agent of any other amount required by any provision of law, including, without
      limitation, Section 9-615 of the UCC, need the Administrative Agent account
      for
      the surplus, if any, to the Guarantor. To the extent permitted by applicable
      law, the Guarantor waives all claims, damages and demands it may acquire against
      the Administrative Agent or any Guaranteed Creditor arising out of the exercise
      by them of any rights hereunder except to the extent caused by the gross
      negligence or willful misconduct of the Administrative Agent or such Guaranteed
      Creditor or their respective agents. 

     

    (b)  In
      the
      event that the Administrative Agent elects not to sell the Collateral, the
      Administrative Agent retains its rights to dispose of or utilize the Collateral
      or any part or parts thereof in any manner authorized or permitted by law or
      in
      equity, and to apply the proceeds of the same towards payment of the
      Obligations. Each and every method of disposition of the Collateral described
      in
      this Agreement shall constitute disposition in a commercially reasonable
      manner.

     

    (c)  The
      Administrative Agent may appoint any Person as agent to perform any act or
      acts
      necessary or incident to any sale or transfer of the Collateral.

     

    Section
      6.02  Pledged
      Securities.

     

    (a)  Unless
      an
      Event of Default shall have occurred and be continuing and the Administrative
      Agent shall have given notice to the Guarantor of the Administrative Agent’s
      intent to exercise its corresponding rights pursuant to Section
      6.02(c),
      the
      Guarantor shall be permitted to receive all cash dividends paid in respect
      of
      the Pledged Securities paid in the normal course of business of the relevant
      Issuer (other than liquidating or distributing dividends), to the extent
      permitted by Section 10.04 of the Credit Agreement. Any 

     

    
      
        
        

      

      
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      sums
        paid
        upon or in respect of any Pledged Securities upon the liquidation or dissolution
        of any issuer of any Pledged Securities, any distribution of capital made
        on or
        in respect of any Pledged Securities or any property distributed upon or
        with
        respect to any Pledged Securities pursuant to the recapitalization or
        reclassification of the capital of any issuer of Pledged Securities or pursuant
        to the reorganization thereof shall, unless otherwise subject to a perfected
        security interest in favor of the Administrative Agent, be delivered to the
        Administrative Agent to be held by it hereunder as additional collateral
        security for the Obligations. If any sum of money or property so paid or
        distributed in respect of any Pledged Securities shall be received by the
        Guarantor, the Guarantor shall, until such money or property is paid or
        delivered to the Administrative Agent, hold such money or property in trust
        for
        the Administrative Agent, segregated from other funds of the Guarantor, as
        additional security for the Obligations.

    

     

    (b)  Unless
      an
      Event of Default shall have occurred and be continuing and the and the
      Administrative Agent shall have given notice to the Guarantor of the
      Administrative Agent’s intent to exercise its corresponding rights pursuant to
Section
      6.02(c),
      the
      Guarantor shall be entitled to exercise all voting, consent and corporate,
      partnership or limited liability company rights with respect to the Pledged
      Securities; provided, however, that no vote shall be cast, consent given or
      right exercised or other action taken by the Guarantor that would impair the
      Collateral, be inconsistent with or result in any violation of any provision
      of
      the Credit Agreement, this Agreement or any other Loan Document or, without
      the
      prior consent of the Administrative Agent and the Lenders, enable or permit
      any
      issuer of Pledged Securities to issue any Equity Interest or to issue any other
      securities convertible into or granting the right to purchase or exchange for
      any Stock of any issuer of Pledged Securities other than as permitted by the
      Credit Agreement.

     

    (c)  Upon
      the
      occurrence and during the continuance of an Event of Default, upon notice by
      the
      Administrative Agent of its intent to exercise such rights to the Guarantor,
      (i)
      the
      Administrative Agent shall have the right to receive any and all cash dividends,
      payments, Property or other Proceeds paid in respect of the Pledged Securities
      and make application thereof to the Borrower Obligations in accordance with
      Section 11.02(c) of the Credit Agreement, and (ii)
      any or
      all of the Pledged Securities shall be registered in the name of the
      Administrative Agent or its nominee, and (iii)
      the
      Administrative Agent or its nominee may exercise (A)
      all
      voting, consent, corporate, partnership or limited liability company and other
      rights pertaining to such Pledged Securities at any meeting of shareholders,
      partners or members (or other equivalent body), as the case may be, of the
      relevant Issuer or Issuers or otherwise and (B) any and all rights of
      conversion, exchange and subscription and any other rights, privileges or
      options pertaining to such Pledged Securities as if it were the absolute owner
      thereof (including, without limitation, the right to exchange at its discretion
      any and all of the Pledged Securities upon the merger, consolidation,
      reorganization, recapitalization or other fundamental change in the
      organizational structure of any Issuer, or upon the exercise by the Guarantor
      or
      the Administrative Agent of any right, privilege or option pertaining to such
      Pledged Securities, and in connection therewith, the right to deposit and
      deliver any and all of the Pledged Securities with any committee, depositary,
      transfer agent, registrar or other designated agency upon such terms and
      conditions as the Administrative Agent may determine), all without liability
      except to account for Property actually received by it, but the Administrative
      Agent shall have no duty to the Guarantor to exercise any such right, privilege
      or option and shall not be responsible for any failure to do so or delay in
      so
      doing.

     

    
      
        
        

      

      
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    (d)  Upon
      the
      occurrence and during the continuance of an Event of Default, in order to permit
      the Administrative Agent to exercise the voting and other consensual rights
      that
      it may be entitled to exercise pursuant hereto and to receive all dividends
      and
      other distributions that it may be entitled to receive hereunder, (i)
      the
      Guarantor shall promptly execute and deliver (or cause to be executed and
      delivered) to the Administrative Agent all such proxies, dividend payment orders
      and other instruments as the Administrative Agent may from time to time
      reasonably request and (ii)
      without
      limiting the effect of clause (i) above, the Guarantor hereby grants to the
      Administrative Agent an irrevocable proxy to vote all or any part of the Pledged
      Securities and to exercise all other rights, powers, privileges and remedies
      to
      which a holder of the Pledged Securities would be entitled (including giving
      or
      withholding written consents of shareholders, partners or members, as the case
      may be, calling special meetings of shareholders, partners or members, as the
      case may be, and voting at such meetings), which proxy shall be effective,
      automatically and without the necessity of any action (including any transfer
      of
      any Pledged Securities on the record books of the Issuer thereof) by any other
      Person (including the Issuer of such Pledged Securities or
      any
      officer or agent thereof).

     

    (e)  The
      Guarantor hereby authorizes and instructs each Issuer of any Pledged Securities
      pledged by the Guarantor hereunder to (i)
      comply
      with any instruction received by it from the Administrative Agent in writing
      that (A) states that an Event of Default has occurred and is continuing and
      (B)
      is otherwise in accordance with the terms of this Agreement, without any other
      or further instructions from the Guarantor, and the Guarantor agrees that each
      Issuer shall be fully protected in so complying, and (ii)
      unless
      otherwise expressly permitted hereby, pay any dividends or other payments with
      respect to the Pledged Securities directly to the Administrative
      Agent.

     

    (f)  Upon
      the
      occurrence and during the continuance of an Event of Default, if the Issuer
      of
      any Pledged Securities is the subject of bankruptcy, insolvency, receivership,
      custodianship or other proceedings under the supervision of any Governmental
      Authority, then all rights of the Guarantor in respect thereof to exercise
      the
      voting and other consensual rights which the Guarantor would otherwise be
      entitled to exercise with respect to the Pledged Securities issued by such
      Issuer shall cease, and all such rights shall thereupon become vested in the
      Administrative Agent who shall thereupon have the sole right to exercise such
      voting and other consensual rights, but the Administrative Agent shall have
      no
      duty to exercise any such voting or other consensual rights and shall not be
      responsible for any failure to do so or delay in so doing.

     

    Section
      6.03  Private
      Sales of Pledged Securities.
      

     

    (a)  The
      Guarantor recognizes that the Administrative Agent may be unable to effect
      a
      public sale of any or all the Pledged Securities, by reason of certain
      prohibitions contained in the Securities Act and applicable state securities
      laws or otherwise or may determine that a public sale is impracticable or not
      commercially reasonable and, accordingly, and may resort to one or more private
      sales thereof to a restricted group of purchasers which will be obliged to
      agree, among other things, to acquire such securities for their own account
      for
      investment and not with a view to the distribution or resale thereof. The
      Guarantor acknowledges and agrees that any such private sale may result in
      prices and 

     

    
      
        
        

      

      
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      other
        terms less favorable than if such sale were a public sale and, notwithstanding
        such circumstances, agrees that any such private sale shall be deemed to
        have
        been made in a commercially reasonable manner. The Administrative Agent shall
        be
        under no obligation to delay a sale of any of the Pledged Securities for
        the
        period of time necessary to permit the Issuer thereof to register such
        securities for public sale under the Securities Act, or under applicable
        state
        securities laws, even if such Issuer would agree to do so.

    

     

    (b)  The
      Guarantor agrees to use commercially reasonable efforts to do or cause to be
      done all such other acts as may reasonably be necessary to make such sale or
      sales of all or any portion of the Pledged Securities pursuant to this
Section
      6.03
      valid
      and binding and in compliance with any and all other applicable Governmental
      Requirements. The Guarantor further agrees that a breach of any of the covenants
      contained in this Section
      6.03
      will
      cause irreparable injury to the Guaranteed Creditors, that the Guaranteed
      Creditors have no adequate remedy at law in respect of such breach and, as
      a
      consequence, that each and every covenant contained in this Section
      6.03
      shall be
      specifically enforceable against the Guarantor, and the Guarantor hereby waives
      and agrees not to assert any defenses against an action for specific performance
      of such covenants except for a defense that no Event of Default has occurred
      or
      is continuing under the Credit Agreement.

     

    Section
      6.04  Waiver;
      Deficiency.
      The
      Guarantor shall remain liable for any deficiency if the proceeds of any sale
      or
      other disposition of the Collateral are insufficient to pay its Obligations
      and
      the fees and disbursements of any attorneys employed by the Administrative
      Agent
      or any Guaranteed Creditor to collect such deficiency.

     

    Section
      6.05  Non-Judicial
      Enforcement.
      The
      Administrative Agent may enforce its rights hereunder without prior judicial
      process or judicial hearing, and to the extent permitted by law, the Guarantor
      expressly waives any and all legal rights which might otherwise require the
      Administrative Agent to enforce its rights by judicial process.

     

    ARTICLE
      VII

    The
      Administrative Agent

     

    Section
      7.01  Administrative
      Agent’s Appointment as Attorney-in-Fact, Etc.

     

    (a)  The
      Guarantor hereby irrevocably constitutes and appoints the Administrative Agent
      and any officer or agent thereof, with full power of substitution, as its true
      and lawful attorney-in-fact with full irrevocable power and authority in the
      place and stead of the Guarantor and in the name of the Guarantor or in its
      own
      name, for the purpose of carrying out the terms of this Agreement, to take
      any
      and all reasonably appropriate action and to execute any and all documents
      and
      instruments which may be reasonably necessary or desirable to accomplish the
      purposes of this Agreement, and, without limiting the generality of the
      foregoing, the Guarantor hereby gives the Administrative Agent the power and
      right, on behalf of the Guarantor, without notice to or assent by the Guarantor,
      to do any or all of the following:

     

    
      
        
        

      

      
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    (i)  in
      the
      name of the Guarantor or its own name, or otherwise, take possession of and
      indorse and collect any check, draft, note, acceptance or other instrument
      for
      the payment of moneys due with respect to any Collateral and file any claim
      or
      take any other action or proceeding in any court of law or equity or otherwise
      deemed appropriate by the Administrative Agent for the purpose of collecting
      any
      such moneys due with respect to any other Collateral whenever
      payable;

     

    (ii)  unless
      being disputed under Section 9.04 of the Credit Agreement, pay or discharge
      Taxes and Liens levied or placed on or threatened against the Collateral, effect
      any repairs or any insurance called for by the terms of this Agreement or any
      other Loan Document and pay all or any part of the premiums therefor and the
      costs thereof; 

     

    (iii)  execute,
      in connection with any sale provided for in Section
      6.01
      or
Section
      6.03,
      any
      endorsements, assignments or other instruments of conveyance or transfer with
      respect to the Collateral; and

     

    (iv)  (A)
      direct any party liable for any payment under any of the Collateral to make
      payment of any and all moneys due or to become due thereunder directly to the
      Administrative Agent or as the Administrative Agent shall direct; (B) ask or
      demand for, collect, and receive payment of and receipt for, any and all moneys,
      claims and other amounts due or to become due at any time in respect of or
      arising out of any Collateral; (C) commence and prosecute any suits, actions
      or
      proceedings at law or in equity in any court of competent jurisdiction to
      collect the Collateral or any portion thereof and to enforce any other right
      in
      respect of any Collateral; (D) defend any suit, action or proceeding brought
      against the Guarantor with respect to any Collateral; (E) settle, compromise
      or
      adjust any such suit, action or proceeding and, in connection therewith, give
      such discharges or releases as the Administrative Agent may deem appropriate;
      and (F) generally, sell, transfer, pledge and make any agreement with respect
      to
      or otherwise deal with any of the Collateral as fully and completely as though
      the Administrative Agent were the absolute owner thereof for all purposes,
      and
      do, at the Administrative Agent’s option and the Guarantor’s expense, at any
      time, or from time to time, all acts and things which the Administrative Agent
      deems necessary to protect, preserve or realize upon the Collateral and the
      Administrative Agent’s and the Guaranteed Creditors’ security interests therein
      and to effect the intent of this Agreement, all as fully and effectively as
      the
      Guarantor might do.

     

    Anything
      in this Section
      7.01(a)
      to the
      contrary notwithstanding, the Administrative Agent agrees that it will not
      exercise any rights under the power of attorney provided for in this
Section
      7.01(a)
      unless
      an Event of Default shall have occurred and be continuing.

     

    (b)  If
      the
      Guarantor fails to perform or comply with any of its agreements contained herein
      within the applicable grace periods, the Administrative Agent, at its option,
      but without any obligation so to do, may perform or comply, or otherwise cause
      performance or compliance, with such agreement.

     

    (c)  The
      expenses of the Administrative Agent incurred in connection with actions
      undertaken as provided in this Section
      7.01,
      together with interest thereon at a rate per annum equal to the post-default
      rate specified in Section 3.02(b) of the Credit Agreement, but in no event
      to
      exceed the Highest Lawful Rate, from the date of payment by the Administrative
      Agent to the date reimbursed by the Guarantor, shall be payable by the Guarantor
      to the Administrative Agent on demand.

     

    
      
        
        

      

      
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    (d)  The
      Guarantor hereby ratifies all that said attorneys shall lawfully do or cause
      to
      be done by virtue and in compliance hereof. All powers, authorizations and
      agencies contained in this Agreement are coupled with an interest and are
      irrevocable until this Agreement is terminated.

     

    Section
      7.02  Duty
      of Administrative Agent.
      The
      Administrative Agent’s sole duty with respect to the custody, safekeeping and
      physical preservation of the Collateral in its possession, under
      Section 9-207
      of
      the UCC or otherwise, shall be to deal with it in the same manner as the
      Administrative Agent deals with similar Property for its own account and shall
      be deemed to have exercised reasonable care in the custody and preservation
      of
      the Collateral in its possession if the Collateral is accorded treatment
      substantially equal to that which comparable secured parties accord comparable
      collateral. Neither the Administrative Agent, any Guaranteed Creditor nor any
      of
      their Related Parties shall be liable for failure to demand, collect or realize
      upon any of the Collateral or for any delay in doing so or shall be under any
      obligation to sell or otherwise dispose of any Collateral upon the request
      of
      the Guarantor or any other Person or to take any other action whatsoever with
      regard to the Collateral or any part thereof. The powers conferred on the
      Administrative Agent and the Guaranteed Creditors hereunder are solely to
      protect the Administrative Agent’s and the Guaranteed Creditors’ interests in
      the Collateral and shall not impose any duty upon the Administrative Agent
      or
      any Guaranteed Creditor to exercise any such powers. The Administrative Agent
      and the Guaranteed Creditors shall be accountable only for amounts that they
      actually receive as a result of the exercise of such powers, and neither they
      nor any of their Related Parties shall be responsible to the Guarantor for
      any
      act or failure to act hereunder, except for their own gross negligence or
      willful misconduct. To the fullest extent permitted by applicable law, the
      Administrative Agent shall be under no duty whatsoever to make or give any
      presentment, notice of dishonor, protest, demand for performance, notice of
      non-performance, notice of intent to accelerate, notice of acceleration, or
      other notice or demand in connection with any Collateral or the Obligations,
      or
      to take any steps necessary to preserve any rights against the Guarantor or
      other Person or ascertaining or taking action with respect to calls,
      conversions, exchanges, maturities, tenders or other matters relative to any
      Collateral, whether or not it has or is deemed to have knowledge of such
      matters. The Guarantor, to the extent permitted by applicable law, waives any
      right of marshaling in respect of any and all Collateral, and waives any right
      to require the Administrative Agent or any Guaranteed Creditor to proceed
      against any Person, exhaust any Collateral or enforce any other remedy which
      the
      Administrative Agent or any Guaranteed Creditor now has or may hereafter have
      against any Person.

     

    Section
      7.03  Execution
      of Financing Statements.
      Pursuant to the UCC and any other applicable law, the Guarantor authorizes
      the
      Administrative Agent to file or record financing statements and other filing
      or
      recording documents or instruments with respect to the Collateral without the
      signature of the Guarantor in such form and in such offices as the
      Administrative Agent reasonably determines appropriate to perfect the security
      interests of the Administrative Agent under this Agreement. A photographic
      or
      other reproduction of this Agreement shall be sufficient as a financing
      statement or other filing or recording document or instrument for filing or
      recording in any jurisdiction.

     

    
      
        
        

      

      
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    Section
      7.04  Authority
      of Administrative Agent.
      The
      Guarantor acknowledges that the rights and responsibilities of the
      Administrative Agent under this Agreement with respect to any action taken
      by
      the Administrative Agent or the exercise or non-exercise by the Administrative
      Agent of any option, voting right, request, judgment or other right or remedy
      provided for herein or resulting or arising out of this Agreement shall, as
      between the Administrative Agent and the Guaranteed Creditors, be governed
      by
      the Credit Agreement and by such other agreements with respect thereto as may
      exist from time to time among them, but, as between the Administrative Agent
      and
      the Guarantor, the Administrative Agent shall be conclusively presumed to be
      acting as agent for the Guaranteed Creditors with full and valid authority
      so to
      act or refrain from acting, and the Guarantor shall not be under any obligation,
      or entitlement, to make any inquiry respecting such authority.

     

    ARTICLE
      VIII

    Subordination
      of Indebtedness

     

    Section
      8.01  Subordination
      of All Guarantor Claims.
      As used
      herein, the term “Guarantor
      Claims”
shall
      mean all debts and obligations of the Borrower owing to the Guarantor, whether
      such debts and obligations now exist or are hereafter incurred or arise, or
      whether the obligation of the debtor thereon be direct, contingent, primary,
      secondary, several, joint and several, or otherwise, and irrespective of whether
      such debts or obligations be evidenced by note, contract, open account, or
      otherwise, and irrespective of the Person or Persons in whose favor such debts
      or obligations may, at their inception, have been, or may hereafter be created,
      or the manner in which they have been or may hereafter be acquired by. After
      and
      during the continuation of an Event of Default, the Guarantor shall not receive
      or collect, directly or indirectly, from any other Guarantor in respect thereof
      any amount upon the Guarantor Claims.

     

    Section
      8.02  Claims
      in Bankruptcy.
      In the
      event of receivership, bankruptcy, reorganization, arrangement, debtor’s relief,
      or other insolvency proceedings involving the Guarantor, the Administrative
      Agent on behalf of the Administrative Agent and the Guaranteed Creditors shall
      have the right to prove their claim in any proceeding, so as to establish their
      rights hereunder and receive directly from the receiver, trustee or other court
      custodian, dividends and payments which would otherwise be payable upon
      Guarantor Claims. The Guarantor hereby assigns such dividends and payments
      to
      the Administrative Agent for the benefit of the Administrative Agent and the
      Guaranteed Creditors for application against the Borrower Obligations as
      provided under Section 11.02(c) of the Credit Agreement. Should the
      Administrative Agent or Guaranteed Creditor receive, for application upon the
      Obligations, any such dividend or payment which is otherwise payable to the
      Guarantor, and which shall constitute a credit upon the Guarantor Claims, then
      upon payment in full in cash of the Borrower Obligations and the termination
      of
      all of the Commitments, the intended recipient shall become subrogated to the
      rights of the Administrative Agent and the Guaranteed Creditors to the extent
      that such payments to the Administrative Agent and the Guaranteed Creditors
      on
      the Guarantor Claims have contributed toward the liquidation of the Obligations,
      and such subrogation shall be with respect to that proportion of the Obligations
      which would have been unpaid if the Administrative Agent and the Guaranteed
      Creditors had not received dividends or payments upon the Guarantor
      Claims.

     

    
      
        
        

      

      
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    Section
      8.03  Payments
      Held in Trust.
      In the
      event that, notwithstanding Section
      8.01
      and
Section
      8.02,
      the
      Guarantor should receive any funds, payments, claims or distributions which
      is
      prohibited by such Sections, then it agrees: (a)
      to hold
      in trust for the Administrative Agent and the Guaranteed Creditors an amount
      equal to the amount of all funds, payments, claims or distributions so received,
      and (b)
      that it
      shall have absolutely no dominion over the amount of such funds, payments,
      claims or distributions except to pay them promptly to the Administrative Agent,
      for the benefit of the Guaranteed Creditors; and the Guarantor covenants
      promptly to pay the same to the Administrative Agent.

     

    Section
      8.04  Liens
      Subordinate.
      The
      Guarantor agrees that, until the Borrower Obligations are paid in full in cash
      and the termination of all of the Commitments, any Liens securing payment of
      the
      Guarantor Claims shall be and remain inferior and subordinate to any Liens
      securing payment of the Obligations, regardless of whether such encumbrances
      in
      favor of the Guarantor, the Administrative Agent or any Guaranteed Creditor
      presently exist or are hereafter created or attach. Without the prior written
      consent of the Administrative Agent, the Guarantor, during the period in which
      any of the Borrower Obligations are outstanding or the Commitments are in
      effect, shall not (a)
      exercise
      or enforce any creditor’s right it may have against any debtor in respect of the
      Guarantor Claims, or (b)
      foreclose, repossess, sequester or otherwise take steps or institute any action
      or proceeding (judicial or otherwise, including without limitation the
      commencement of or joinder in any liquidation, bankruptcy, rearrangement,
      debtor’s relief or insolvency proceeding) to enforce any Lien securing payment
      of the Guarantor Claims held by it.

     

    Section
      8.05  Notation
      of Records.
      Upon
      the request of the Administrative Agent, all promissory notes and all accounts
      receivable ledgers or other evidence of the Guarantor Claims accepted by or
      held
      by the Guarantor shall contain a specific written notice thereon that the
      indebtedness evidenced thereby is subordinated under the terms of this
      Agreement.

     

    ARTICLE
      IX

    Miscellaneous

     

    Section
      9.01  Waiver.
      No
      failure on the part of the Administrative Agent or any Lender to exercise and
      no
      delay in exercising, and no course of dealing with respect to, any right, power,
      privilege or remedy or any abandonment or discontinuance of steps to enforce
      such right, power, privilege or remedy under this Agreement or any other Loan
      Document shall operate as a waiver thereof, nor shall any single or partial
      exercise of any right, power, privilege or remedy under this Agreement or any
      other Loan Document preclude or be construed as a waiver of any other or further
      exercise thereof or the exercise of any other right, power, privilege or remedy.
      The remedies provided herein are cumulative and not exclusive of any remedies
      provided by law or equity.

     

    Section
      9.02  Notices.
      All
      notices and other communications provided for herein shall be given in the
      manner and subject to the terms of Section 13.01 of the Credit Agreement;
      provided that any such notice, request or demand to or upon the Guarantor shall
      be addressed to the Guarantor at its notice address set forth on Schedule
      1.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    Section
      9.03  Payment
      of Expenses, Indemnities, Etc.

     

    (a)  The
      Guarantor agrees to pay or reimburse each Guaranteed Creditor and the
      Administrative Agent for all out-of-pocket expenses incurred by such Person,
      including the fees, charges and disbursements of any counsel for the
      Administrative Agent or any Guaranteed Creditor, in connection with the
      enforcement or protection of its rights in connection with this Agreement or
      any
      other Loan Document, including, without limitation, all costs and expenses
      incurred in collecting against the Guarantor under the guarantee contained
      in
ARTICLE
      II
      or
      otherwise enforcing or preserving any rights under this Agreement and the other
      Loan Documents to which the Guarantor is a party.

     

    (b)  The
      Guarantor agrees to pay, and to save the Administrative Agent and the Guaranteed
      Creditors harmless from, any and all liabilities with respect to, or resulting
      from any delay in paying, any and all Other Taxes which may be payable or
      determined to be payable with respect to any of the Collateral or in connection
      with any of the transactions contemplated by this Agreement.

     

    (c)  The
      Guarantor agrees to pay, and to save the Administrative Agent and the Guaranteed
      Creditors harmless from, any and all liabilities, obligations, losses, damages,
      penalties, actions, judgments, suits, costs, expenses or disbursements of any
      kind or nature whatsoever with respect to the execution, delivery, enforcement,
      performance and administration of this Agreement to the extent the Borrower
      would be required to do so pursuant to Section 13.03 of the Credit
      Agreement.

     

    Section
      9.04  Amendments
      in Writing.
      None of
      the terms or provisions of this Agreement may be waived, amended, supplemented
      or otherwise modified except in accordance with Section 13.02 of the Credit
      Agreement.

     

    Section
      9.05  Successors
      and Assigns.
      The
      provisions of this Agreement shall be binding upon the Guarantor and its
      successors and assigns and shall inure to the benefit of the Administrative
      Agent and the Guaranteed Creditors and their respective successors and assigns.
      The Guarantor may not assign, transfer or delegate any of its rights or
      obligations under this Agreement without the prior written consent of the
      Administrative Agent and the Lenders, and any such purported assignment,
      transfer or delegation shall be null and void.

     

    Section
      9.06  Survival;
      Revival; Reinstatement.
      

     

    (a)  All
      covenants, agreements, representations and warranties made by the Guarantor
      herein and in the certificates or other instruments delivered in connection
      with
      or pursuant to this Agreement or any other Loan Document to which it is a party
      shall be considered to have been relied upon by the Administrative Agent and
      the
      Lenders and shall survive the execution and delivery of this Agreement and
      the
      making of any Loans, regardless of any investigation made by any such other
      party or on its behalf and notwithstanding that the Administrative Agent or
      any
      Lender may have had notice or knowledge of any Default or incorrect
      representation or warranty at the time any credit is extended
      hereunder, and shall continue in full force and effect as long as the principal
      of or any accrued interest on any Loan or any fee or any other amount payable
      under the Credit

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

       

      Agreement
        is outstanding and unpaid and so long as the Commitments have not expired
        or
        terminated. The provisions of Section
        9.03
        shall
        survive and remain in full force and effect regardless of the consummation
        of
        the transactions contemplated hereby, the repayment of the Loans and the
        Commitments or the termination of this Agreement, any other Loan Document
        or any
        provision hereof or thereof.

    

     

    (b)  To
      the
      extent that any payments on the Guarantor Obligations or proceeds of any
      Collateral are subsequently invalidated, declared to be fraudulent or
      preferential, set aside or required to be repaid to a trustee, debtor in
      possession, receiver or other Person under any bankruptcy law, common law or
      equitable cause, then to such extent, the Guarantor Obligations so satisfied
      shall be revived and continue as if such payment or proceeds had not been
      received and the Administrative Agent’s and the Guaranteed Creditors’ Liens,
      security interests, rights, powers and remedies under this Agreement and each
      other Loan Document shall continue in full force and effect. In such event,
      each
      Loan Document shall be automatically reinstated and the Borrower shall take
      such
      action as may be reasonably requested by the Administrative Agent and the
      Guaranteed Creditors to effect such reinstatement.

     

    Section
      9.07  Counterparts;
      Integration; Effectiveness.
      

     

    (a)  This
      Agreement may be executed in counterparts (and by different parties hereto
      on
      different counterparts), each of which shall constitute an original, but all
      of
      which when taken together shall constitute a single contract.

     

    (b)  This
      Agreement, the other Loan Documents and any separate letter agreements with
      respect to fees payable to the Administrative Agent constitute the entire
      contract among the parties relating to the subject matter hereof and thereof
      and
      supersede any and all previous agreements and understandings, oral or written,
      relating to the subject matter hereof and thereof. THIS
      AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG
      THE
      PARTIES HERETO AND THERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
      CONTEMPERANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
      UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 

     

    (c)  This
      Agreement shall become effective when it shall have been executed by the
      Administrative Agent and when the Administrative Agent shall have received
      counterparts hereof which, when taken together, bear the signatures of each
      of
      the other parties hereto, and thereafter shall be binding upon and inure to
      the
      benefit of the parties hereto, the Lenders and their respective successors
      and
      assigns. Delivery of an executed counterpart of a signature page of this
      Agreement by telecopy shall be effective as delivery of a manually executed
      counterpart of this Agreement.

     

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

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    Section
      9.09  Set-Off.
      If an
      Event of Default shall have occurred and be continuing, each Lender and each
      of
      its Affiliates is hereby authorized at any time and from time to time, to the
      fullest extent permitted by law, to set off and apply any and all deposits
      (general or special, time or demand, provisional or final) at any time held
      and
      other obligations (of whatsoever kind, including, without limitations
      obligations under Swap Agreements) at any time owing by such Lender or Affiliate
      to or for the credit or the account of the Guarantor against any of and all
      the
      obligations of the Guarantor owed to such Lender now or hereafter existing
      under
      this Agreement or any other Loan Document, irrespective of whether or not such
      Lender shall have made any demand under this Agreement or any other Loan
      Document and although such obligations may be unmatured. The rights of each
      Lender under this Section
      9.09
      are in
      addition to other rights and remedies (including other rights of setoff) which
      such Lender or its Affiliates may have.

     

    Section
      9.10  Governing
      Law; Submission to Jurisdiction.
      

     

    (a)  THIS
      AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
      OF
      THE STATE OF NEW YORK. NOTWITHSTANDING
      ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, IN THE EVENT THAT, BY
      REASON OF MANDATORY PROVISIONS OF LAW, ANY OF THE ATTACHMENT, PERFECTION OR
      PRIORITY OF THE SECURED PARTY’S SECURITY INTEREST IN ANY OF THE PLEDGED
      SECURITIES IS REQUIRED TO BE GOVERNED BY THE UNIFORM COMMERCIAL CODE AS IN
      EFFECT IN A JURISDICTION OTHER THAN THE STATE OF NEW YORK (THE “OTHER
      UNIFORM COMMERCIAL CODE”),
      THEN,
      FOR PURPOSES OF THE PROVISIONS HEREOF RELATING TO SUCH ATTACHMENT, PERFECTION,
      THE EFFECT THEREOF OR PRIORITY, AND FOR PURPOSES OF DEFINITIONS RELATED TO
      SUCH
      PROVISIONS, SUCH OTHER UNIFORM COMMERCIAL CODE SHALL CONTROL.

     

    (b)  ANY
      LEGAL
      ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
      SHALL BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES
      OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY
      OF THIS AGREEMENT, EACH OF THE PARTIES HEREBY ACCEPTS FOR ITSELF AND (TO THE
      EXTENT PERMITTED BY LAW) IN RESPECT OF ITS PROPERTY, GENERALLY AND
      UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH PARTY HEREBY
      IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION
      TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH
      IT
      MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING
      IN
      SUCH RESPECTIVE JURISDICTIONS. THIS SUBMISSION TO JURISDICTION IS NON-EXCLUSIVE
      AND DOES NOT PRECLUDE A PARTY FROM OBTAINING JURISDICTION OVER ANOTHER PARTY
      IN
      ANY COURT OTHERWISE HAVING JURISDICTION.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    (c)  EACH
      PARTY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE
      AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES
      THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO IT AT THE ADDRESS
      SPECIFIED IN SECTION 13.01 OF THE CREDIT AGREEMENT (OR SUCH OTHER ADDRESS AS
      IS
      SPECIFIED PURSUANT TO SECTION 13.01 OF THE CREDIT AGREEMENT) OR SCHEDULE 1
      HERETO, AS APPLICABLE, SUCH SERVICE TO BECOME EFFECTIVE THIRTY (30) DAYS AFTER
      SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE RIGHT OF A PARTY OR ANY HOLDER
      OF
      A NOTE TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE
      LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANOTHER PARTY IN ANY OTHER
      JURISDICTION.

     

    (d)  EACH
      PARTY HEREBY (1) IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
      PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
      TO
      THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN;
      (2)
      IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT
      IT
      MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, EXEMPLARY,
      PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO,
      ACTUAL DAMAGES; (3) CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OR
      AGENT OF COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
      OR IMPLIED THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
      ENFORCE THE FOREGOING WAIVERS, AND (4) ACKNOWLEDGES THAT IT HAS BEEN INDUCED
      TO
      ENTER INTO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND THE TRANSACTIONS
      CONTEMPLATED HEREBY AND THEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
      AND
      CERTIFICATIONS CONTAINED IN THIS SECTION 9.10.

     

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

     

    Section
      9.12  Acknowledgments.
      The
      Guarantor hereby acknowledges that:

     

    (a)  it
      has
      been advised by counsel in the negotiation, execution and delivery of this
      Agreement and the other Loan Documents to which it is a party;

     

    (b)  neither
      the Administrative Agent nor any Guaranteed Creditor has any fiduciary
      relationship with or duty to the Guarantor arising out of or in connection
      with
      this Agreement or any of the other Loan Documents, and the relationship between
      the Guarantor, on the one hand, and the Administrative Agent and Guaranteed
      Creditors, on the other hand, in connection herewith or therewith is solely
      that
      of debtor and creditor; 

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    (c)  no
      joint
      venture is created hereby or by the other Loan Documents or otherwise exists
      by
      virtue of the transactions contemplated hereby among the Guaranteed Creditors
      or
      among the Guarantor and the Guaranteed Creditors; and

     

    (d)  Each
      of
      the parties hereto specifically agrees that it has a duty to read this
      Agreement, the Security Instruments and the other Loan Documents and agrees
      that
      it is charged with notice and knowledge of the terms of this Agreement, the
      Security Instruments and the other Loan Documents; that it has in fact read
      this
      Agreement, the Security Instruments and the other Loan Documents and is fully
      informed and has full notice and knowledge of the terms, conditions and effects
      thereof; that it has been represented by independent legal counsel of its choice
      throughout the negotiations preceding its execution of this Agreement and the
      Security Instruments; and has received the advice of its attorney in entering
      into this Agreement and the Security Instruments; and that it recognizes that
      certain of the terms of this Agreement and the Security Instruments result
      in
      one party assuming the liability inherent in some aspects of the transaction
      and
      relieving the other party of its responsibility for such liability. EACH
      PARTY HERETO AGREES AND COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR
      ENFORCEABILITY OF ANY EXCULPATORY PROVISION OF THIS AGREEMENT AND THE OTHER
      SECURITY INSTRUMENTS ON THE BASIS THAT THE PARTY HAD NO NOTICE OR KNOWLEDGE
      OF
      SUCH PROVISION OR THAT THE PROVISION IS NOT “CONSPICUOUS.”

     

    Section
      9.13  Additional
      Guarantors and Guarantors.
      Each
      Subsidiary of the Borrower that is required to become a party to this Agreement
      pursuant to Section 9.14 of the Credit Agreement shall become an
      Guarantor
      for all
      purposes of this Agreement upon execution and delivery by such Subsidiary of
      an
      Assumption Agreement and shall thereafter have the same rights, benefits and
      obligations as the Guarantor party hereto on the date hereof. Any guarantor
      that
      is required to pledge Equity Interests of its Subsidiaries shall execute and
      deliver a Supplement, if such Equity Interests were not previously
      pledged.

     

    Section
      9.14  Releases.
      

     

    (a)  Release
      Upon Payment in Full.
      The
      grant of a security interest hereunder and all of rights, powers and remedies
      in
      connection herewith shall remain in full force and effect until the
      Administrative Agent has (i)
      retransferred and delivered all Collateral in its possession to the Guarantor,
      and (ii)
      executed
      a written release or termination statement and reassigned to the Guarantor
      without recourse or warranty any remaining Collateral and all rights conveyed
      hereby. Upon the complete payment of the Borrower Obligations, the termination
      of all of the Commitments and the compliance by the Guarantor with all covenants
      and agreements hereof, the Administrative Agent, at the expense of the Borrower,
      will promptly release, reassign and transfer the Collateral to the Guarantor
      and
      declare this Agreement to be of no further force or effect.

     

    (b)  Partial
      Releases.
      If any
      of the Collateral shall be sold, transferred or otherwise disposed of by the
      Guarantor in a transaction permitted by the Credit Agreement, then the
      Administrative Agent, at the request and sole expense of the Guarantor, shall
      promptly execute and deliver to the Guarantor all releases or other documents
      reasonably necessary or desirable for the release of the Liens created hereby
      on
      such Collateral and the Equity Interests of the Issuer thereof. At the request
      and sole expense of the Borrower, the Guarantor shall be released from its
      obligations hereunder in the event that all the Equity Interests of the
      Guarantor shall be sold, transferred or otherwise disposed of in a
      transaction

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

       

      permitted
        by the Credit Agreement; provided that the Borrower shall have delivered
        to the
        Administrative Agent, at least ten Business Days prior to the date of the
        proposed release, a written request of a Responsible Officer of the Borrower
        for
        release identifying the Guarantor and the terms of the sale or other disposition
        in reasonable detail, including the price thereof and any expenses in connection
        therewith, together with a certification by the Borrower stating that such
        transaction is in compliance with the Credit Agreement and the other Loan
        Documents.

    

     

    (c)  Retention
      in Satisfaction.
      Except
      as may be expressly applicable pursuant to Section 9-620
      of the
      UCC, no action taken or omission to act by the Administrative Agent or the
      Guaranteed Creditors hereunder, including, without limitation, any exercise
      of
      voting or consensual rights or any other action taken or inaction, shall be
      deemed to constitute a retention of the Collateral in satisfaction of the
      Obligations or otherwise to be in full satisfaction of the Obligations, and
      the
      Obligations shall remain in full force and effect, until the Administrative
      Agent and the Guaranteed Creditors shall have applied payments (including,
      without limitation, collections from Collateral) towards the Obligations in
      the
      full amount then outstanding or until such subsequent time as is provided in
      Section
      9.14(a).

     

    Section
      9.15  Acceptance.
      The
      Guarantor hereby expressly waives notice of acceptance of this Agreement,
      acceptance on the part of the Administrative Agent and the Guaranteed Creditors
      being conclusively presumed by their request for this Agreement and delivery
      of
      the same to the Administrative Agent.

     

     

    [Remainder
      of page intentionally left blank; signature page follows]

     

     

     

     

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

       

    

    IN
      WITNESS WHEREOF, each of the undersigned has caused this Guaranty and Pledge
      Agreement to be duly executed and delivered as of the date first above
      written.

     

    

    
      	GUARANTOR:	
              Petro Resources
                Corporation,

              a Delaware
                corporation

            
	 	 
	 	
              By: /s/
                Wayne P.
                Hall                                          

                    
                Name: Wayne P. Hall

                   
                 Title: Chief Executive Officer

            

    

     

     

    

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    Acknowledged
      and Agreed to as

    of
      the
      date first written above by:

    

    
      	 	 	 
	
              ADMINISTRATIVE
                AGENT:

            	
              D.
                B. ZWIRN SPECIAL OPPORTUNITIES FUND, L.P.

            
	 
 	 
 	 
 
	 	By:  	
              D.B.
                Zwirn Partners, LLC,

              
                its
                  general partner

              

            
	 	
               

               

            
	 	
              By: /s/
                illegible                                        

              Name:________________________

              Title:_________________________

            

    

     

     

     

     

    
 

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    Schedule
      1

     

    NOTICE
      ADDRESSES OF GUARANTOR

     

    

     

    Petro
      Resources Corporation

    

    

    

    

     

    

     

    
      
        
        

      

      
        Schedule
          1 - 1

        
          

        

      

      
        
        

      

    

    Schedule
      2

     

    DESCRIPTION
      OF PLEDGED SECURITIES

     

    

    

    Pledged
      Securities:

    

    
      	
               

              Owner

               

            	
               

              Issuer

               

            	
               

              Percentage

              Owned

               

            	
               

              Percentage

              Pledged

               

            	
               

              Class
                of Stock or

              other
                Equity Interest

               

            	
               

              No.
                of

              Shares

               

            	
               

              Certificate

              No.

               

            
	
               

              Petro
                Resources Corporation

               

            	
               

              PRC
                Williston LLC

               

            	
               

              100%

               

            	
               

              100%

               

            	
               

              Limited
                liability company

               

            	 	 

    

    

    

     

     

     

     

    
       

      
        
          
          

        

        
          Schedule
            2 - 1

          
            

          

        

        
          
          

        

         

      

    

    Schedule
      3

     

    FILINGS
      AND OTHER ACTIONS

    REQUIRED
      TO PERFECT SECURITY INTERESTS

     

    

     

    
      	
              1.

            	
              Filing
                of UCC-1 Financing Statement with respect to the Collateral with
                the
                Secretary of State of the State of
                Delaware.

            

    

     

    

     

    

     

     

     

     

     

    
       

      
        
          
          

        

        
          Schedule 3
            - 1

          
            

          

        

        
          
          

        

         

      

    

    Schedule
      4

     

    LOCATION
      OF JURISDICTION OF ORGANIZATION AND CHIEF EXECUTIVE OFFICE

     

    

     

    Legal
      name of the Guarantor: Petro Resources Corporation

    Address:
      

    All
      names
      and trade names that the Guarantor has used in the last five years:

    Jurisdictions
      of organization over the last five years: 

    Current
      jurisdiction of organization: 

    Organizational
      number: 

    Taxpayer
      identification number: 

    Location
      of chief executive office or sole place of business over the last five years:
      

    

    

    

    

    

     

     

    
       

      
        
          
          

        

        
          Schedule 4
            - 1

          
            

          

        

        
          
          

        

         

      

    

    Schedule
      5

     

    DEBT

     

    

     

    

     

     

     

     

     

    
       

      
        
          
          

        

        
          Schedule 5
            - 1

          
            

          

        

        
          
          

        

         

      

    

    ACKNOWLEDGMENT
      AND CONSENT

     

    The
      undersigned hereby acknowledges receipt of a copy of the Guaranty and Pledge
      Agreement dated as of February ___, 2007 (the “Guaranty
      and Pledge Agreement”),
      made
      by the Guarantor for the benefit of D.B. ZWIRN SPECIAL OPPORTUNITIES FUND,
      L.P.,
      as Administrative Agent. The undersigned agrees for the benefit of the
      Administrative Agent and the Guaranteed Creditors as follows:

     

    1.    The
      undersigned will be bound by the terms of the Guaranty and Pledge Agreement
      and
      will comply with such terms insofar as such terms are applicable to the
      undersigned.

     

    2.    The
      terms
      of Section
      6.01(a)
      and
Section
      6.03
      of the
      Guaranty and Pledge Agreement shall apply to it, mutatis
      mutandis,
      with
      respect to all actions that may be required of it pursuant to Section
      6.02(a)
      or
Section
      6.03
      of the
      Guaranty and Pledge Agreement.

     

     

    
      	 	
              [NAME
                OF ISSUER]

               

              By:
                ______________________________________

              Title:

               

               

              Address
                for Notices:

              ____________________________________

              ____________________________________

              ____________________________________

              Fax:
                ______________________________________

            

    

           

     

     

    * This
      consent is necessary only with respect to any Issuer which is not also an
      Guarantor. This consent may be modified or eliminated with respect to any Issuer
      that is not controlled by a Guarantor.

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