Document:

Exhibit 10.14

 

EXECUTION COPY

 

EXECUTIVE
EMPLOYMENT AND NON-COMPETITION AGREEMENT

 

 

AGREEMENT, dated as of the 30th day of June, 2006,
by and among Hawkeye Renewables, LLC, a Delaware limited liability company (the
“Company”), Hawkeye Intermediate, LLC, a Delaware
limited liability company (“Holdings”), Hawkeye
Holdings, Inc., a Delaware corporation (“IPO Corp.”), and
J.D. Schlieman, a resident of Iowa (the “Executive”).

WHEREAS, the Company is engaged primarily in the business of
constructing, owning, managing and operating ethanol plants (the “Business”);

WHEREAS, the Company and Holdings have entered into a Membership
Interest Purchase Agreement dated as of May 11, 2006 (the “Purchase Agreement”) among the Company, Holdings, Hawkeye
Holdings, L.L.C. (the “Seller”), THL
Hawkeye Acquisition Partners (“THL”), THL
Acquisition Partners II (“THL II”), THL
Acquisition Partners III (“THL III”,
collectively with THL and THL II, the “Investors”) and
the other parties thereto (the “Transaction”);

WHEREAS, the Company desires to continue to engage the services of the Executive
and the Executive desires to continue to be employed by the Company until the Conversion
(as defined below);

WHEREAS, IPO Corp. desires to engage the services of the Executive and
the Executive desires to continue to be employed by the IPO Corp. from and
after the Conversion as defined below;

WHEREAS, the Company and IPO Corp. desire to be assured that the unique
and expert services of the Executive will be substantially available to the
Company and IPO Corp., and that the Executive is willing and able to render
such services on the terms and conditions hereinafter set forth; and

WHEREAS, the Company and IPO Corp. desire to be assured that the
confidential information and good will of the Company and IPO Corp. will be
preserved for the exclusive benefit of the Company and IPO Corp.;

NOW, THEREFORE, in consideration of such employment and the mutual
covenants and promises herein contained, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Company, Holdings and the Executive agree as follows:

Section 1.               Employment
and Position.  Subject to Section 2,
the Company hereby agrees to continue to employ the Executive as its President
and Chief Financial Officer, and the Executive hereby agrees to continue such
employment under and subject to the terms and conditions hereinafter set forth.  From and after the date that the equity
securities of Holdings are converted to common stock of IPO Corp. in accordance
with Section 3.6 of the Securityholders Agreement (the “Conversion”),
all references to Company in this Agreement shall mean IPO 

 

Corp.  In no
event will the substitution of IPO Corp. as the Company under this Agreement
constitute a termination of employment under this Agreement.

Section 2.               Term.  The term of employment under this Agreement
shall begin on the date hereof and, unless sooner terminated as provided in
Section 6, shall conclude on the three year anniversary of the date hereof (the
“Term”). 
The Term shall automatically renew for an additional one year period at
the end of the initial Term and each successive year thereafter unless either
party provides the other with written notice of termination at least 30 days’
prior to the end of such initial Term or successive one year term thereafter.

Section 3.               Duties.  The Executive shall perform services in a
managerial capacity in a manner consistent with the Executive’s position as President
and Chief Financial Officer, subject to the general supervision of the Board of
Directors of the Company (the “Board”) and the
terms of the Amended and Restated Limited Liability Company Agreement dated the
date hereof, among the Executive, Holdings, the Seller, the Investors and the
other parties thereto (the “LLC Agreement”),
the Limited Liability Company Securityholders Agreement dated the date hereof,
among the Executive, Holdings, the Seller, the Investors and the other parties
thereto (the “Securityholders Agreement”) and,
after the date of the Conversion, the by-laws of IPO Corp.; provided, however,
that no amendment or modification of the LLC Agreement, the Securityholders
Agreement or the by-laws of IPO Corp. after the date hereof which would have
the effect of altering any of the terms of this Agreement shall be effective
without the consent of the Executive.  The
Executive hereby agrees to devote his full business time and best efforts to
the faithful performance of such duties and to the promotion and forwarding of the
business and affairs of the Company for the Term.

Section 4.               Compensation;
Equity Participation.

Section 4.01           Compensation.  (a) Salary.  In consideration of the services rendered by
the Executive under this Agreement, the Company shall pay the Executive a base
salary at the rate of $250,000 per calendar year (the “Base Salary”).  The Base Salary shall be paid in such
installments and at such times as the Company pays its regularly salaried executives
and shall be subject to all necessary withholding taxes, FICA contributions and
similar deductions.  The Board will
review annually the Base Salary payable to Executive hereunder and may, in its
sole discretion, increase but not decrease, the Executive’s rate of
compensation.  Any such increased Base
Salary shall be and become the “Base Salary”
for purposes of this Agreement.

                (b)           Annual Bonus.  During the Term, the Executive shall be
eligible to receive an annual bonus in an amount up to two hundred percent (200%)
of the Base Salary (the “Annual Bonus”).  The Annual Bonus shall be calculated and
payable in accordance with and based on operating performance targets
established by the Board by reference to the budget approved from time to time
by the Board for such fiscal year (the “Annual Budget”).  The Annual Bonus will be calculated and
payable in accordance with formula to be agreed to by the Company and the
Executive after the date hereof.  The
parties each will use their commercially reasonable efforts (including taking the
actions described in Section 13.01 hereof) to structure and pay such
Annual Bonus so as to comply with the requirements of Internal Revenue
Code Section 409A in order to ensure that any amounts paid or payable as an
Annual Bonus are not subject to the additional 20% income tax.  The
Annual Bonus shall be paid within thirty (30) days after receipt
of audited 

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financial statements by the
Company for the applicable fiscal year.  For
purposes of determining any Annual Bonus for 2006 (assuming projected bonuses
for 2006 have been accrued on the Company’s monthly balance sheets for each
month preceding the closing of the Transaction), the Executive shall be deemed
to have commenced employment hereunder as of the first day of such fiscal year.  Any compensation paid to the Executive as the Annual
Bonus shall be in addition to the Base Salary. 
Annual Bonus performance criteria are subject to annual review and
change by the Board relative to key strategic objectives for the year; provided
that, the Executive’s Annual Bonus opportunity provided for hereunder (i.e., the percentage of Base Salary) may not be modified
without the Executive’s prior written consent. 
Upon calculation of the Annual Bonus, the Board shall be provided with a
summary of the Executive’s compensation and other payments received by the
Executive from the Company for the preceding fiscal year, including but not
limited to, Base Salary, Annual Bonus, expenses, and related party
transactions.

Section 4.02: 
Profits Interest.   The Executive shall be granted on the date
hereof one million eighty-three thousand three-hundred and thirty three
(1,083,333) Class B common units in Holdings representing 2.499% of the
outstanding common equity interests of Holdings on the date hereof (the “Employee Units”).  The
Employee Units shall participate in distribution of Holdings and shall be
subject to vesting and the other terms contained in (i) the LLC Agreement, and
(ii) that certain Restricted Unit Agreement of even date between the Executive
and Holdings (“Restricted Unit Agreement”),
which is incorporated herein by reference.

Section 5.   Benefits.  In addition to the compensation detailed in
Section 4 of this Agreement, the Executive shall be entitled to the following
additional benefits:

Section 5.01.  Paid Vacation.  The Executive shall be entitled to 15 paid
vacation per calendar year, such vacation to extend for such periods and shall
be taken at such intervals as shall be appropriate and consistent with the
proper performance of the Executive’s duties hereunder.

Section 5.02.          Insurance
Coverage.  During the Term, the
Executive and the Executive’s family shall be eligible for participation in and
shall receive benefits under welfare benefit plans, practices, policies and
programs provided by the Company which provide benefits and coverage levels
which are at least equal to the benefits and coverage levels made available to executives
of the Company immediately prior to the date hereof.  The Company may, at its election and for its
benefit, insure the Executive against disability, accidental loss or death and
the Executive shall submit to such physical examinations and supply such
information as may be required in connection therewith.

Section 5.03.          Reimbursement
of Expenses.  The Company
shall reimburse the Executive for all reasonable and necessary expenses
actually incurred by the Executive directly in connection with the business
affairs of the Company and the performance of his duties hereunder upon
presentation of proper receipts or other proof of expenditure and subject to
such guidelines established by the Company from time to time.  The Executive shall comply with such guidelines
and reporting requirements with respect to such expenses as the Board may
establish from time to time.

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Section 5.04.          Other
Benefit Plans.  During the Term, the
Executive shall be entitled to participate in all incentive, savings, retirement
and pension plans, practices, policies and programs applicable generally to
other executives of the Company, including but not
limited to, an equity incentive plan maintained by the Company; provided,
however, that if the Company does not provide retirement or pension plans after
the date of the Conversion, the Executive shall be entitled to participate in
any such plans that may, in the Company’s discretion, be maintained by Hawkeye
Renewables, LLC.

Section 6.               Termination.  This Agreement shall be terminated at the end
of the Term or earlier as follows:

Section 6.01.          Death.  This Agreement shall automatically terminate
upon the death of the Executive.

Section 6.02.          Permanent
Disability.  In the event of any
physical or mental disability of the Executive rendering the Executive unable
to perform his duties hereunder for a period of at least 120 days out of any
twelve-month period (a “Disability”),
this Agreement shall terminate automatically. 
Any determination of Disability shall be made by the Board in
consultation with a qualified physician or physicians selected by the Board and
reasonably acceptable to the Executive. 
The failure of the Executive to submit to a reasonable examination by
such physician or physicians shall act as an estoppel to any objection by the Executive
to the determination of disability by the Board.

Section 6.03.          By the
Company For Cause.  The employment of
the Executive may be terminated by the Company for Cause (as defined below) at
any time effective upon written notice to the Executive.  For purposes hereof, the term “Cause” shall mean:

(a)           the Executive’s
admission, confession, or plea bargain to or conviction in a court of law of
any felony or other crime involving moral turpitude or the Executive’s commission
of any other act or any omission to act involving dishonesty, disloyalty or
fraud involving the Company which is material;

(b)           engaging in conduct
that is demonstrably and materially injurious to the business, reputation,
character, or community standing of the Company;

(c)           continued material failure to
perform the duties described in Section 3 for 15 days after written notice from
the Company to the Employee providing a detailed description of the failure
constituting cause;

(d)           gross
negligence or willful misconduct with respect to the Company that is demonstrably and materially
injurious to the Company; or

(e)           breach of any
restrictive covenant with the Company not cured within 15 days of written
notice from the Company to the Executive providing a detailed description of
the activities constituting Cause.

Section 6.04.          By the
Company without Cause.  The Company
may terminate the Executive’s employment at any time without Cause effective
upon 60 days prior written notice to 

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the Executive, provided  that, in lieu of
such prior written notice, the Company may continue to pay the Executive’s
compensation and provide the benefits contemplated hereunder for such 60-day
period and for purposes of Section 7.02 the Executive’s termination date shall
be considered to be the end of such 60-day period.  Expiration or termination of the Term as
provided for in Section 2 shall not constitute termination without Cause.

Section 6.05.          By the Executive
Voluntarily.  The Executive may
terminate this Agreement at any time without Good Reason effective upon at
least 60 days prior written notice to the Company.

Section 6.06.          By the Executive
for Good Reason.  The Executive may
terminate this Agreement effective upon written notice to the Company for Good
Reason.  Such notice must provide a
detailed explanation of the Good Reason. 
Any such termination shall be treated for purposes of this Agreement as
a termination by the Company without Cause. 
For this purpose, the term “Good Reason”
shall mean:  (i) a material
diminution in or assignment of duties inconsistent with Executive’s position
prior to the date of this Agreement or a change in the Executive’s direct
reporting relationship, provided, however, that a change in title shall not
itself be considered a material diminution; (ii)  a reduction in Base
Salary or a reduction in Annual Bonus (it being understood that the failure to
receive an Annual Bonus or a reduced Annual Bonus due to failure to meet applicable
performance targets shall not be considered a reduction in Annual Bonus
hereunder); or (iii) any breach of this Agreement by Company, provided, the
Company is provided written notice of such breach by Executive and is provided
15 days to cure such breach; or (iv) any material breach of the Securityholders’
Agreement or LLC Agreement by the Company which has an adverse impact upon
Executive and which is not cured within 15 days after written notice of such
breach is provided by Executive to the Company.

Section
7.               Termination Payments
and Benefits.

Section 7.01.          Death, Voluntary
Termination, Termination For Cause. 
Upon any termination of this Agreement either (i) voluntarily by the Executive
other than for Good Reason, (ii) by the Company for Cause as provided in
Section 6.03 or (iii) as a result of the Executive’s death or permanent Disability,
except as otherwise specifically provided, all payments, salary and other
benefits hereunder shall cease at the effective date of termination.  Notwithstanding the foregoing, the Executive
shall be entitled to receive from the Company (i) all salary earned or accrued
through the date the Executive’s employment is terminated, (ii) reimbursement
for any and all monies advanced in connection with the Executive’s employment
for reasonable and necessary expenses incurred by the Executive through the
date the Executive’s employment is terminated and (iii) all other payments and
benefits to which the Executive may be entitled under the terms of any
applicable compensation arrangement or benefit plan or program of the Company
or Holdings, including any earned and accrued, but unused vacation pay ((i)
through (iii) collectively, “Accrued Benefits”),
except that, for this purpose, Accrued Benefits shall not include any
entitlement to severance under any Company severance policy generally
applicable to the Company’s salaried employees. 
In addition, in the event of the Executive’s death or Disability, the
Executive (or his estate, executors, administrators, heirs, beneficiaries and
legal representatives, or family as the case may be) shall be entitled to
receive (i) an amount equal to (a) the projected Annual Bonus for the year
in which the termination occurs (calculated as set forth in Section 7.02
below) multiplied  by  a fraction, 

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the numerator of which is the number of days in the
current fiscal year prior to the date of the termination, and the denominator
of which is 365 and (ii) at no cost to the Executive or his family, the
same or equivalent medical, dental, and life insurance coverages as in effect
for the Executive and his family immediately prior to the termination of his
employment for a period of twelve (12) months after the Executive’s termination
of employment after which time, the Executive’s and his family’s rights under
the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) shall
apply.

Section 7.02.          Termination
without Cause or for Good Reason.  In
the event that this Agreement is terminated by the Company without Cause or by
the Executive for Good Reason, except as otherwise specifically provided, all
payments, salary and other benefits hereunder shall cease at the effective date
of termination.  Notwithstanding the
foregoing, the Executive shall be entitled to receive, (i) his Accrued
Benefits, except that, for this purpose, Accrued Benefits shall not include any
entitlement to severance under any Company severance policy generally
applicable to the Company’s salaried employees, (ii) as long as the
Executive does not violate the provisions of Section 8 and Section 9 hereof,
severance pay equal to (a) the Executive’s then current monthly Base Salary,
payable in accordance with the Company’s regular pay schedule, for twelve (12)
months from the date of termination of employment, plus (b) a lump sum
cash payment in an amount equal to the Executive’s projected Annual Bonus for
the fiscal year in which the termination occurs (with the amount of such Annual
Bonus being determined based on the Company’s actual year-to-date
performance (through the end of the month immediately preceding termination)
compared to the Company’s year-to-date targets (through the end of
the month immediately preceding termination), as set forth in the Company’s
Annual Budget, and (iii)  at no cost to the Executive or his family, the
same or equivalent medical, dental, and life insurance coverages as in effect
for the Executive and his family immediately prior to the termination of his
employment, until the earlier of (a) the expiration of the period for which he
receives severance pay pursuant to clause (ii) above or (b) the date the
Executive has commenced new employment and has thereby become eligible for
comparable benefits, subject to the Executive’s rights under COBRA.

Section 7.03.          Accrued
Benefits.  Notwithstanding anything
else herein to the contrary, all Accrued Benefits to which the Executive (or
his estate or beneficiary) is entitled shall be payable in cash promptly upon
termination, except as otherwise specifically provided herein, or under the
terms of any applicable policy, plan or program.

Section 7.04.          Survival
of Certain Provisions.  Provisions of
this Agreement shall survive any termination of employment if so provided
herein or if necessary or desirable fully to accomplish the purposes of such
provision, including, without limitation, the obligations of the Executive
under Section 8 and 9 hereof.  The obligation
of the Company to make payments to or on behalf of the Executive under Section
7 hereof is expressly conditioned upon the Executive’s continued full
performance of obligations under Section 8 and Section 9 hereof.  The Executive recognizes that, except as
expressly provided in Section 7, no compensation is earned after termination of
employment.

Section 7.05.          No Other
Benefits.  Except as specifically
provided in this Section 7, the Executive shall not be entitled to any
compensation, severance or other benefits from the Company or any of its
subsidiaries or affiliates upon the termination of this Agreement for any 

6

reason whatsoever. 
Acceptance by the Executive of performance by the Company shall constitute
full settlement of any claims that the Executive might otherwise assert against
the Company, its affiliates or any of their respective shareholders, partners,
directors, officers, employees or agents relating to such termination or
arising out of this Agreement. 
Notwithstanding the foregoing, nothing contained in this Section 7.05
shall be deemed a release by Executive of any benefits he may be entitled to
under any other written agreements between the Company and the Executive,
including, without limitation, the Restricted Unit Agreement.

Section
8.               Proprietary
Information; Inventions in the Field. 
For purposes of Sections 8 and 9, “Company” shall
include Holdings and its subsidiaries.

Section 8.01.          Proprietary
Information.  In the course of service
to the Company, the Executive will have access to confidential specifications,
know-how, strategic or technical data, marketing research data, product
research and development data, manufacturing techniques, confidential customer
lists, sources of supply and trade secrets, all of which are confidential and
may be proprietary and are owned or used by the Company, or any of its
subsidiaries or affiliates.  Such
information shall hereinafter be called “Proprietary Information”
and shall include any and all items enumerated in the preceding sentence and
coming within the scope of the business of the Company or any of its
subsidiaries or affiliates as to which the Executive may have access, whether
conceived or developed by others or by the Executive alone or with others
during the period of service to the Company, whether or not conceived or
developed during regular working hours. 
Proprietary Information shall not include (i) any records, data or
information which are in the public domain prior to, during or after the period
of service by the Executive provided the same are not in the public domain as a
consequence of disclosure directly or indirectly by the Executive in violation of
this Agreement, or (ii) general industry knowledge or know-how.

Section 8.02.          Fiduciary
Obligations.  The Executive agrees
that Proprietary Information is of critical importance to the Company and a
violation of this Section 8.02 and Section 8.03 would seriously and irreparably
impair and damage the Company’s business. 
The Executive agrees that he shall keep all Proprietary Information in a
fiduciary capacity for the sole benefit of the Company.

Section 8.03.          Non-Use
and Non-Disclosure.  The Executive
shall not during the Term or at any time thereafter (a) disclose, directly or
indirectly, any Proprietary Information to any person other than the Company or
executives thereof at the time of such disclosure who, in the reasonable
judgment of the Executive, need to know such Proprietary Information or such
other persons to the extent required in the course of the Executive’s service
to the Company or (b) use any Proprietary Information, directly or indirectly,
for his own benefit or for the benefit of any other person or entity other than
the Company.  At the termination of his
employment, the Executive shall deliver to the Company all notes, letters,
documents and records which may contain Proprietary Information which are then
in his possession or control and shall destroy any and all copies and summaries
thereof.

Section 8.04.          Assignment
of Inventions.  The Executive agrees
to assign and transfer to the Company or its designee, without any separate
remuneration or compensation, his entire right, title and interest in and to
all Inventions in the Field (as defined below), together with all 

7

United States and foreign rights with respect thereto,
and at the Company’s expense to execute and deliver all appropriate patent and
copyright applications for securing United States and foreign patents and
copyrights on Inventions in the Field and to perform all lawful acts, including
giving testimony, and to execute and deliver all such instruments that may be
necessary or proper to vest all such Inventions in the Field and patents and
copyrights with respect thereto in the Company, and to assist the Company in
the prosecution or defense of any interference which may be declared involving
any of said patent applications, patents, copyright applications or
copyrights.  For the purposes of this
Agreement, the words “Inventions in the Field”
shall include any discovery, process, design, development, improvement,
application, technique, or invention, whether patentable or copyrightable or
not and whether reduced to practice or not, conceived or made by the Executive,
individually or jointly with others (whether on or off the Company’s premises
or during or after normal working hours) while in the employ of the Company,
and which was or is directly or indirectly related to the Business of the
Company, or which resulted or results from any work performed by the Executive
or agent thereof during the Term.

Section 8.05           Return
of Documents.  All notes, letters,
documents, records, tapes and other media of every kind and description
relating to the business, present or otherwise, of the Company or its
affiliates and any copies, in whole or in part, thereof (collectively, the “Documents”), whether or not prepared by the Executive, shall
be the sole and exclusive property of the Company.  The Executive shall safeguard all Documents
and shall surrender to the Company at the time his employment terminates, or at
such earlier time or times as the Board or its designee may specify, all
Documents then in the Executive’s possession or control.

Section
9.               Restrictions on Activities
of the Executive

Section 9.01.          Acknowledgments.  The Executive and Company agree that he is
being employed hereunder in a key capacity with the Company and that the
Company is engaged in a highly competitive business and that the success of the
Company’s business in the marketplace depends upon its goodwill and reputation
for quality and dependability.  The Executive
and Company further agree that reasonable limits may be placed on his ability
to compete against the Company as provided herein to the extent that they
protect and preserve the legitimate business interests and good will of the
Company.

Section
9.02.          Non-Competition.

Executive shall not, directly or indirectly for the longer of (i) three
(3) years from the Closing Date (as defined in the Purchase Agreement) or (ii)
one (1) year following termination of employment for any or no reason, own,
manage, engage in, operate, control, work for, consult with, render services
for, do business with, maintain any interest in (proprietary, financial or
otherwise) or participate in the ownership, management, operation or control
of, any business, whether in corporate, proprietorship or partnership form or
otherwise, engaged in the Business; provided, however, that the
restrictions contained in this Section 9.02 shall not restrict the acquisition
by the Executive, directly or indirectly, of less than 2% of the outstanding
capital stock of any publicly traded company engaged in the Business.

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Section 9.03.          Non-Solicitation.

Executive agrees he or she shall not, and shall cause, if applicable,
their directors, officers and employees not to, directly or indirectly, for the
longer of (i) three (3) years from the Closing Date or (ii) one (1) year
following termination of employment for any or no reason, (a) cause, solicit,
induce or encourage any employees of the Company to leave such employment or
hire or employ any such individual; or (b) cause, induce or encourage any
material client, customer, supplier, or licensor of the Company (including any
existing or former customer of the Company and any person that becomes a client
or customer of the Company after the Closing Date) to terminate or modify any
such actual or prospective relationship.

Section 9.04.          THE EXECUTIVE
REPRESENTS AND WARRANTS THAT THE KNOWLEDGE, SKILLS AND ABILITIES HE POSSESSES
AT THE TIME OF COMMENCEMENT OF EMPLOYMENT HEREUNDER ARE SUFFICIENT TO PERMIT
HIM, IN THE EVENT OF TERMINATION OF HIS EMPLOYMENT HEREUNDER, TO EARN A
LIVELIHOOD SATISFACTORY TO HIMSELF WITHOUT VIOLATING ANY PROVISION OF SECTION 8
OR 9 HEREOF, FOR EXAMPLE, BY USING SUCH KNOWLEDGE, SKILLS AND ABILITIES, OR
SOME OF THEM, IN THE SERVICE OF A NON-COMPETITOR.

Section 10.  Remedies.  It is specifically understood and agreed that
any breach of the provisions of Section 8 or 9 of this Agreement is likely to
result in irreparable injury to the Company and that the remedy at law alone
will be an inadequate remedy for such breach, and that in addition to any other
remedy it may have, the Company shall be entitled to enforce the specific
performance of this Agreement by the Executive and to seek both temporary and
permanent injunctive relief (to the extent permitted by law) without bond.  Neither the right to obtain such relief nor
the obtaining of such relief shall be exclusive or preclude the Company from
any other remedy.

Section 11.  Severable
Provisions.  The provisions of this
Agreement are severable and the invalidity of any one or more provisions shall
not affect the validity of any other provision. 
In the event that a court of competent jurisdiction shall determine that
any provision of this Agreement or the application thereof is unenforceable in
whole or in part because of the duration or scope thereof, the parties hereto
agree that said court in making such determination shall have the power to
reduce the duration and scope of such provision to the extent necessary to make
it enforceable, and that the Agreement in its reduced form shall be valid and
enforceable to the full extent permitted by law.

Section 12.  Notices.  All notices hereunder, to be effective, shall
be in writing and shall be delivered by hand, facsimile or mailed by certified
mail, postage and fees prepaid, as follows:

9

	
  If to the Company,

  	
   

  	
   

  
	
  Holdings or IPO Corp.:

  	
   

  	
  Hawkeye Intermediate, LLC

  
	
   

  	
   

  	
  21050 140th Street

  
	
   

  	
   

  	
  Iowa Falls, IA 50126

  
	
   

  	
   

  	
  Facsimile No: (641) 648-8925

  
	
   

  	
   

  	
  Attention: President

  
	
   

  	
   

  	
   

  
	
  With copies to:

  	
   

  	
  Thomas H. Lee Partners, L.P.

  
	
   

  	
   

  	
  100 Federal Street

  
	
   

  	
   

  	
  Boston, MA 02110

  
	
   

  	
   

  	
  Facsimile No: (617) 227-3514

  
	
   

  	
   

  	
  Attention: 

  	
  Scott Sperling

  
	
   

  	
   

  	
   

  	
  Thomas Hagerty

  
	
   

  	
   

  	
   

  	
  Soren Oberg

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Weil, Gotshal & Manges LLP

  
	
   

  	
   

  	
  100 Federal Street

  
	
   

  	
   

  	
  Boston, MA 02110

  
	
   

  	
   

  	
  Facsimile No: (617) 772-8333

  
	
   

  	
   

  	
  Attention: James Westra and Marilyn French

  
	
   

  	
   

  	
   

  
	
  If to the Executive:

  	
   

  	
  J.D. Schlieman

  
	
   

  	
   

  	
  1330 Fairway Avenue

  
	
   

  	
   

  	
  Story City, Iowa 50248

  

 

 

or
to such other address as a party may notify the other pursuant to a notice
given in accordance with this Section 12.

Section 13.             Miscellaneous.

Section 13.01.        Amendment.  This Agreement constitutes the entire
Agreement between the parties hereto with regard to the subject matter hereof,
superseding all prior understandings and agreements, whether written or oral.  This Agreement may not be amended or revised
except by a writing signed by the parties. 
Notwithstanding any other provision of this Agreement to the contrary,
the parties shall in good faith amend this Agreement to the limited extent
necessary to comply with the requirements under Internal Revenue Code Section
409A in order to ensure that any amounts paid or payable hereunder are not
subject to the additional 20% income tax thereunder while maintaining to the
maximum extent practicable the original intent of this Agreement.

Section 13.02.        Assignment
and Transfer.  The provisions of this
Agreement shall be binding on and shall inure to the benefit of any such
successor in interest to the Company and Holdings.  Neither this Agreement nor any of the rights,
duties or obligations of the Executive shall be assignable by the Executive.  However, all rights of the Executive under
this Agreement shall inure to the benefit of and be enforceable by the
Executive’s personal or legal 

10

representatives, estates, executors, administrators,
heirs and beneficiaries.  All amounts
payable to the Executive hereunder shall be paid, in the event of the Executive’s
death, to the Executive’s estate, heirs or representatives.

Section 13.03         Waiver of
Breach.  A waiver by the Company or
the Executive of any breach of any provision of this Agreement by the other
party shall not operate or be construed as a waiver of any other or subsequent
breach by the other party.

Section 13.04.        Entire
Agreement.  This Agreement (together
with the other agreements expressly referenced herein) contain the entire
agreement of the parties with respect to the subject matter hereof and
supersedes all prior agreements among the parties with respect to such subject
matter.

Section 13.05         Withholding.  The Company shall be entitled to withhold
from any amounts to be paid or benefits provided to the Executive hereunder any
federal, state, local, or foreign withholding or other taxes or charges which
it is from time to time required to withhold. 
The Company shall be entitled to rely on an opinion of counsel if any
question as to the amount or requirement of any such withholding shall arise.

Section 13.06.        Captions.  Captions herein have been inserted solely for
convenience of reference and in no way define, limit or describe the scope or
substance of any provision of this Agreement.

Section 13.07         Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and shall have the same
effect as if the signatures hereto and thereto were on the same instrument.

Section 13.08         Governing
Law.  This Agreement shall be
construed under and enforced in accordance with the laws of the State of Iowa.

[Remainder of page
left intentionally blank]

 

11

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

	
   

  	
  HAWKEYE RENEWABLES, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Bruce Rastetter

  
	
   

  	
  Name: Bruce Rastetter

  
	
   

  	
  Title: CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HAWKEYE INTERMEDIATE,
  LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Bruce Rastetter

  
	
   

  	
   

  	
  Name: Bruce Rastetter

  
	
   

  	
  Title: CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HAWKEYE HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bruce Rastetter

  
	
   

  	
  Name: Bruce Rastetter

  
	
   

  	
  Title: CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ J.D. Schlieman

  
	
   

  	
  J.D. SCHLIEMAN

  
				

 

 

12Exhibit 10.17

 

EXECUTION COPY

 

 

FIRST LIEN CREDIT AGREEMENT

 

dated as of

 

June 30, 2006,

 

among

 

HAWKEYE INTERMEDIATE, LLC,

 

THL - HAWKEYE ACQUISITION LLC

(to be merged with and into HAWKEYE RENEWABLES, LLC),

 

THE LENDERS PARTY HERETO

 

and

 

CREDIT SUISSE,

 

as Administrative Agent and Collateral Agent

 

 

CREDIT SUISSE SECURITIES (USA) LLC

 

and

 

BANC OF AMERICA SECURITIES LLC,

 

as Joint Lead Arrangers and Joint Bookrunners

 

and

 

GOLDMAN SACHS CREDIT PARTNERS L.P.,

 

as Joint Bookrunner

 

 

 

	
  Table of Contents

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SCHEDULES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  
	
   

  	
   

  	
   

  
	
  Definitions

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  Defined
  Terms

  	
  1

  
	
  SECTION 1.02.

  	
  Terms
  Generally

  	
  32

  
	
  SECTION 1.03.

  	
  Classification
  of Loans and Borrowings

  	
  33

  
	
  SECTION 1.04.

  	
  Rounding

  	
  33

  
	
  SECTION 1.05.

  	
  References
  to Agreements and Laws

  	
  33

  
	
  SECTION 1.06.

  	
  Times
  of Day

  	
  33

  
	
  SECTION 1.07.

  	
  Timing
  of Payment or Performance

  	
  33

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
   

  	
   

  	
   

  
	
  The Credits

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  Commitments

  	
  34

  
	
  SECTION 2.02.

  	
  Loans

  	
  34

  
	
  SECTION 2.03.

  	
  Borrowing
  Procedure

  	
  36

  
	
  SECTION 2.04.

  	
  Evidence
  of Debt; Repayment of Loans

  	
  37

  
	
  SECTION 2.05.

  	
  Fees

  	
  37

  
	
  SECTION 2.06.

  	
  Interest
  on Loans

  	
  38

  
	
  SECTION 2.07.

  	
  Default
  Interest

  	
  39

  
	
  SECTION 2.08.

  	
  Alternate
  Rate of Interest

  	
  39

  
	
  SECTION 2.09.

  	
  Termination
  and Reduction of Commitments

  	
  39

  
	
  SECTION 2.10.

  	
  Conversion
  and Continuation of Borrowings

  	
  40

  
	
  SECTION 2.11.

  	
  Repayment
  of Term Borrowings

  	
  42

  
	
  SECTION 2.12.

  	
  Optional
  Prepayment

  	
  42

  
	
  SECTION 2.13.

  	
  Mandatory
  Prepayments

  	
  43

  
	
  SECTION 2.14.

  	
  Reserve
  Requirements; Change in Circumstances

  	
  45

  
	
  SECTION 2.15.

  	
  Change
  in Legality

  	
  46

  
	
  SECTION 2.16.

  	
  Indemnity

  	
  47

  
	
  SECTION 2.17.

  	
  Pro
  Rata Treatment

  	
  47

  
	
  SECTION 2.18.

  	
  Sharing
  of Setoffs

  	
  48

  
	
  SECTION 2.19.

  	
  Payments

  	
  48

  
	
  SECTION 2.20.

  	
  Taxes

  	
  49

  
	
  SECTION 2.21.

  	
  Assignment
  of Commitments Under Certain Circumstances; Duty to Mitigate

  	
  51

  
	
  SECTION 2.22.

  	
  Swingline
  Loans

  	
  52

  

 

i

 

	
  SECTION 2.23.

  	
  Letters
  of Credit

  	
  54

  
	
  SECTION 2.24.

  	
  Incremental
  Credit Extensions

  	
  58

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  	
   

  
	
  Representations and Warranties

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Organization;
  Powers

  	
  60

  
	
  SECTION 3.02.

  	
  Authorization

  	
  60

  
	
  SECTION 3.03.

  	
  Enforceability

  	
  61

  
	
  SECTION 3.04.

  	
  Governmental
  Approvals

  	
  61

  
	
  SECTION 3.05.

  	
  Financial
  Statements

  	
  61

  
	
  SECTION 3.06.

  	
  No
  Material Adverse Change

  	
  62

  
	
  SECTION 3.07.

  	
  Title
  to Properties; Possession Under Leases

  	
  62

  
	
  SECTION 3.08.

  	
  Subsidiaries

  	
  63

  
	
  SECTION 3.09.

  	
  Litigation;
  Compliance with Laws

  	
  63

  
	
  SECTION 3.10.

  	
  Agreements

  	
  63

  
	
  SECTION 3.11.

  	
  Federal
  Reserve Regulations

  	
  63

  
	
  SECTION 3.12.

  	
  Investment
  Company Act

  	
  63

  
	
  SECTION 3.13.

  	
  Tax
  Returns

  	
  64

  
	
  SECTION 3.14.

  	
  No
  Material Misstatements

  	
  64

  
	
  SECTION 3.15.

  	
  Employee
  Benefit Plans

  	
  64

  
	
  SECTION 3.16.

  	
  Environmental
  Matters

  	
  65

  
	
  SECTION 3.17.

  	
  Security
  Documents

  	
  65

  
	
  SECTION 3.18.

  	
  Location
  of Real Property and Leased Premises

  	
  65

  
	
  SECTION 3.19.

  	
  Labor
  Matters

  	
  65

  
	
  SECTION 3.20.

  	
  Solvency

  	
  66

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  	
   

  	
   

  
	
  Conditions of Lending

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  All
  Credit Events

  	
  66

  
	
  SECTION 4.02.

  	
  First Credit
  Event

  	
  67

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
   

  	
   

  	
   

  
	
  Affirmative Covenants

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
  Existence;
  Compliance with Laws; Businesses and Properties

  	
  70

  
	
  SECTION 5.02.

  	
  Insurance

  	
  70

  
	
  SECTION 5.03.

  	
  Taxes

  	
  71

  
	
  SECTION 5.04.

  	
  Financial
  Statements, Reports, etc

  	
  71

  
	
  SECTION 5.05.

  	
  Litigation
  and Other Notices

  	
  73

  

 

ii

 

	
  SECTION 5.06.

  	
  Information
  Regarding Collateral

  	
  73

  
	
  SECTION 5.07.

  	
  Maintaining
  Records; Access to Properties and Inspections; Maintenance of Ratings

  	
  74

  
	
  SECTION 5.08.

  	
  Use
  of Proceeds

  	
  74

  
	
  SECTION 5.09.

  	
  Further
  Assurances

  	
  74

  
	
  SECTION 5.10.

  	
  Interest
  Rate Protection

  	
  76

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  	
   

  	
   

  
	
  Negative Covenants

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  Indebtedness

  	
  77

  
	
  SECTION 6.02.

  	
  Liens

  	
  80

  
	
  SECTION 6.03.

  	
  Sale
  and Lease-Back Transactions

  	
  83

  
	
  SECTION 6.04.

  	
  Investments,
  Loans and Advances

  	
  83

  
	
  SECTION 6.05.

  	
  Mergers,
  Consolidations, and Sales of Assets

  	
  85

  
	
  SECTION 6.06.

  	
  Restricted
  Payments; Restrictive Agreements

  	
  88

  
	
  SECTION 6.07.

  	
  Transactions
  with Affiliates

  	
  92

  
	
  SECTION 6.08.

  	
  Business
  of Holdings, Borrower and Subsidiaries

  	
  93

  
	
  SECTION 6.09.

  	
  Other
  Indebtedness and Agreements

  	
  93

  
	
  SECTION 6.10.

  	
  Capital
  Expenditures

  	
  94

  
	
  SECTION 6.11.

  	
  Interest
  Coverage Ratio

  	
  95

  
	
  SECTION 6.12.

  	
  Maximum
  Total Leverage Ratio

  	
  95

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  	
   

  	
   

  
	
  Events of Default

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
   

  	
   

  	
   

  
	
  The Administrative Agent and the Collateral Agent

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  
	
   

  	
   

  	
   

  
	
  Miscellaneous

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
  Notices

  	
  101

  
	
  SECTION 9.02.

  	
  Survival
  of Agreement

  	
  102

  
	
  SECTION 9.03.

  	
  Binding
  Effect

  	
  102

  
	
  SECTION 9.04.

  	
  Successors
  and Assigns

  	
  103

  
	
  SECTION 9.05.

  	
  Expenses;
  Indemnity

  	
  107

  
	
  SECTION 9.06.

  	
  Right
  of Setoff

  	
  109

  

 

iii

 

	
  SECTION 9.07.

  	
  Applicable
  Law

  	
  109

  
	
  SECTION 9.08.

  	
  Waivers;
  Amendment

  	
  109

  
	
  SECTION 9.09.

  	
  Interest
  Rate Limitation

  	
  110

  
	
  SECTION 9.10.

  	
  Entire
  Agreement

  	
  111

  
	
  SECTION 9.11.

  	
  WAIVER
  OF JURY TRIAL

  	
  111

  
	
  SECTION 9.12.

  	
  Severability

  	
  111

  
	
  SECTION 9.13.

  	
  Counterparts

  	
  111

  
	
  SECTION 9.14.

  	
  Headings

  	
  112

  
	
  SECTION 9.15.

  	
  Jurisdiction;
  Consent to Service of Process

  	
  112

  
	
  SECTION 9.16.

  	
  Confidentiality

  	
  112

  
	
  SECTION 9.17.

  	
  USA
  PATRIOT Act Notice

  	
  113

  

 

	
  Schedule 1.01(a)

  	
  -

  	
  Subsidiary
  Guarantors

  
	
  Schedule 1.01(b)

  	
  -

  	
  Mortgaged
  Property

  
	
  Schedule 1.01(c)

  	
  -

  	
  Disqualified
  Institutions

  
	
  Schedule 2.01

  	
  -

  	
  Lenders
  and Commitments

  
	
  Schedule 3.08

  	
  -

  	
  Subsidiaries

  
	
  Schedule 3.09

  	
  -

  	
  Litigation

  
	
  Schedule 3.17(a)

  	
  -

  	
  UCC
  Filing Offices

  
	
  Schedule 3.17(c)

  	
  -

  	
  Mortgage
  Filing Offices

  
	
  Schedule 3.18(a)

  	
  -

  	
  Owned
  Real Property

  
	
  Schedule 3.18(b)

  	
  -

  	
  Leased
  Real Property

  
	
  Schedule 4.02(a)

  	
  -

  	
  Local
  Counsel

  
	
  Schedule 6.01

  	
  -

  	
  Existing
  Indebtedness

  
	
  Schedule 6.02

  	
  -

  	
  Existing
  Liens

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
  Form
  of Administrative Questionnaire

  
	
  Exhibit B

  	
  -

  	
  Form
  of Assignment and Acceptance

  
	
  Exhibit C

  	
  -

  	
  Form
  of Borrowing Request

  
	
  Exhibit D

  	
  -

  	
  Form
  of First Lien Guarantee and Collateral Agreement

  
	
  Exhibit E

  	
  -

  	
  Form
  of Intercreditor Agreement

  
	
  Exhibit F

  	
  -

  	
  Form
  of First Lien Mortgage

  
	
  Exhibit G

  	
  -

  	
  Form
  of Non-Bank Certificate

  
	
  Exhibit H-1

  	
  -

  	
  Form
  of First Lien Trademark Security Agreement

  
	
  Exhibit H-2

  	
  -

  	
  Form
  of First Lien Patent Security Agreement

  
	
  Exhibit H-3

  	
  -

  	
  Form
  of First Lien Copyright Security Agreement

  

 

iv

 

FIRST
LIEN CREDIT AGREEMENT dated as of June 30, 2006 (this “Agreement”), among HAWKEYE
INTERMEDIATE, LLC, a Delaware limited liability company, THL - HAWKEYE
ACQUISITION LLC, a Delaware limited liability company (“Merger Sub”) to be
merged with and into HAWKEYE RENEWABLES, LLC, a Delaware limited liability
company (the “Company”),
the LENDERS (as defined herein), and CREDIT SUISSE, as administrative agent (in
such capacity, the “Administrative
Agent”) and as collateral agent (in such capacity, the “Collateral Agent”)
for the Lenders.

 

RECITALS

 

A.            Pursuant to the Purchase Agreement (such term
and each other capitalized term used but not defined in these recitals having
the meaning set forth in Article I) (a) Hawkeye Holdings, L.L.C. (the
“Seller”)
will contribute 100% of the membership interests of the Company to Holdings
(which Equity Interests shall be Qualified Capital Stock or shall have terms
reasonably acceptable to the Arrangers), (b) certain affiliates of Thomas
H. Lee Partners, L.P. and certain other investors (collectively, the “Investors”) will
acquire, for cash consideration, directly or indirectly, approximately 80% of
the Equity Interests in Holdings from the Seller (the “Acquisition”) with
the Seller retaining the remaining approximately 20% of the Equity Interests in
Holdings and (c) Merger Sub will be merged with and into the Company, with
the Company surviving as a wholly owned subsidiary of Holdings.

 

B.            The Borrower has requested (a) the
Lenders to extend credit in the form of (i) Term Loans on the Closing
Date, in an aggregate principal amount not in excess of $500,000,000,
(ii) Revolving Loans at any time and from time to time prior to the
Revolving Credit Maturity Date, in an aggregate principal amount at any time
outstanding not in excess of $50,000,000, (b) the Swingline Lender to
extend credit in the form of Swingline Loans, in an aggregate principal amount
at any time outstanding not in excess of $10,000,000 and (c) the Issuing
Bank to issue Letters of Credit, in an aggregate face amount at any time
outstanding not in excess of $20,000,000.

 

C.            The Lenders are willing to extend such credit
to the Borrower and the Issuing Bank is willing to issue Letters of Credit for
the account of the Borrower, in each case on the terms and subject to the
conditions set forth herein. Accordingly, the parties hereto agree as follows:

 

ARTICLE I

 

Definitions

 

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

 

“ABR”, when used in
reference to any Loan or Borrowing, refers to whether such Loan, or the Loans
comprising such Borrowing, are bearing interest at a rate determined by
reference to the Alternate Base Rate.

 

 

“Acquisition” shall
have the meaning assigned to such term in the recitals.

 

“Additional Lender”
has the meaning set forth in Section 2.24(a).

 

“Adjusted LIBO Rate”
shall mean, with respect to any Eurodollar Borrowing for any Interest Period,
an interest rate per annum equal to the product of (a) the LIBO Rate in
effect for such Interest Period and (b) Statutory Reserves.

 

“Administration Fees”
shall have the meaning assigned to such term in Section 2.05(b).

 

“Administrative Agent”
shall have the meaning assigned to such term in the preamble.

 

“Administrative Questionnaire”
shall mean an Administrative Questionnaire in the form of Exhibit A, or such
other form as may be supplied from time to time by the Administrative Agent.

 

“Affiliate” shall
mean, when used with respect to a specified person, another person that
directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the person specified; provided, however, that no Lender (nor any
of its Affiliates) shall be deemed to be an Affiliate of Holdings, the Borrower
or any of their Subsidiaries as a result of the Lenders and their Affiliates
holding in the aggregate, directly or indirectly, 20% or less of the Equity
Interests of Holdings.

 

“Aggregate Revolving Credit Exposure”
shall mean the aggregate amount of the Lenders’ Revolving Credit Exposures.

 

“Agreement” shall have
the meaning assigned to such term in the preamble.

 

“Alternate Base Rate”
shall mean, for any day, a rate per annum equal to the greater of (a) the
Prime Rate in effect on such day and (b) the Federal Funds Effective Rate
in effect on such day plus 1/2 of 1%. Any change in the Alternate Base
Rate due to a change in the Prime Rate or the Federal Funds Effective Rate
shall be effective on the effective date of such change in the Prime Rate or
the Federal Funds Effective Rate, as the case may be.

 

“Applicable Percentage”
shall mean, for any day, (a) with respect to any Eurodollar Term Loan,
4.00%, (b) with respect to any ABR Term Loan, 3.00%, (c) with respect
to any Swingline Loan, the applicable percentage set forth below under the
caption “ABR Spread”, (d) with respect to any Eurodollar Revolving Loan or
ABR Revolving Loan, the applicable percentage set forth below under the caption
“Eurodollar Spread” or “ABR Spread”, and (e) with respect to the
Commitment Fee, the applicable percentage set forth below under the caption “Fee
Percentage”, as the case may be (in the case of clauses (c), (d) and (e)
above, based upon the Total Leverage Ratio as of the relevant date of
determination):

 

2

 

	
  Total Leverage Ratio

  	
   

  	
  Eurodollar Spread

  	
   

  	
  ABR Spread

  	
   

  	
  Fee Percentage

  	
   

  
	
  Category 1

   

  Greater than 3.25 to 1.00

  	
   

  	
  4.00

  	
  %

  	
  3.00

  	
  %

  	
  0.500

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Category 2

   

  Less than or equal to 3.25 to 1.00

  	
   

  	
  3.75

  	
  %

  	
  2.75

  	
  %

  	
  0.375

  	
  %

  

 

Each
change in the Applicable Percentage resulting from a change in the Total
Leverage Ratio shall be effective with respect to all Revolving Credit
Commitments, Revolving Loans, Swingline Loans and Letters of Credit outstanding
on and after the date of delivery to the Administrative Agent of the financial
statements required by Section 5.04(a) or (b) and certificates required by
Section 5.04(c) indicating such change until and including the date
immediately preceding the next date of delivery of such financial statements
and certificates indicating another such change. Notwithstanding the foregoing,
until Holdings shall have delivered the financial statements required by
Section 5.04(a) or (b) and the certificate required by Section 5.04(c)
covering a period that includes the first fiscal quarter of Holdings ended
after the Closing Date, the Total Leverage Ratio shall be deemed to be in
Category 1 for purposes of determining the Applicable Percentage. In
addition, (a) at any time during which Holdings has failed to deliver the
financial statements required by Section 5.04(a) or (b) or the
certificates required by Section 5.04(c) by the date required thereunder,
or (b) at any time after the occurrence and during the continuance of an Event
of Default, the Total Leverage Ratio shall be deemed to be in Category 1
for the purposes of determining the Applicable Percentage.

 

“Arrangers” shall mean
Credit Suisse Securities (USA) LLC and Banc of America Securities LLC in their
capacity as joint lead arrangers for the Credit Facilities.

 

“Asset Sale” shall
mean the sale, transfer or other disposition (by way of merger, casualty,
condemnation or otherwise) by the Borrower or any of the Subsidiaries to any
person other than the Borrower or any Subsidiary of (a) any Equity
Interests of any of the Subsidiaries or (b) any other assets of the
Borrower or any of the Subsidiaries.

 

“Assignment and Acceptance”
shall mean an assignment and acceptance entered into by a Lender and an
assignee, and accepted by the Administrative Agent, substantially in the form
of Exhibit B or such other form as shall be reasonably approved by the
Administrative Agent.

 

“Board” shall mean the
Board of Governors of the Federal Reserve System of the United States of
America.

 

3

 

“Borrower” shall mean
(a) prior to the consummation of the Merger, Merger Sub, and (b) upon and after
consummation of the Merger, the Company as the surviving entity of the Merger.

 

“Borrowing” shall mean
(a) Loans of the same Class and Type made, converted or continued on the
same date and, in the case of Eurodollar Loans, as to which a single Interest
Period is in effect, or (b) a Swingline Loan.

 

“Borrowing Request”
shall mean a request by the Borrower in accordance with the terms of
Section 2.03 and substantially in the form of Exhibit C, or such
other form as shall be approved by the Administrative Agent.

 

“Business Day” shall
mean any day other than a Saturday, Sunday or day on which banks in New York
City are generally authorized or required by law to close; provided, however,
that when used in connection with a Eurodollar Loan (including with respect to
all notices and determinations in connection therewith and any payments of
principal, interest or other amounts thereon), the term “Business Day” shall
also exclude any day on which banks are generally not open for dealings in
dollar deposits in the London interbank market.

 

“Capital Expenditures”
shall mean, for any period, the additions to property, plant and equipment and
other capital expenditures of Holdings and its Subsidiaries that are (or should
be) set forth in a consolidated statement of cash flows of Holdings; provided, that Capital Expenditures shall
not include any such expenditures which constitute (a) a Permitted
Acquisition, (b) to the extent permitted by this Agreement, a reinvestment of
the Net Cash Proceeds of any Asset Sale in accordance with
Section 2.13(b), (c) expenditures of proceeds of insurance settlements,
condemnation awards and other settlements in respect of lost, destroyed,
damaged or condemned assets or other property to the extent such expenditures
are made to replace or repair such lost, destroyed, damaged or condemned
assets, equipment or other property or otherwise to acquire, maintain, develop,
construct, improve, upgrade or repair assets or properties useful in the
business of the Borrower and the Subsidiaries, (d) interest capitalized during
such period, (e) expenditures that are accounted for as capital expenditures of
such person and that actually are paid for by a third party and for which none
of the Borrower or any of its Subsidiaries has provided or is required to
provide or incur, directly or indirectly, any consideration or obligation to
such third party or any other person (whether before, during or after such
period), (f) the book value of any asset owned by such person prior to or
during such period as a result of such person reusing or beginning to reuse
such asset during such period without a corresponding expenditure actually
having been made in such period; provided,
that (i) any expenditure necessary in order to permit such asset to be reused
shall be included as a Capital Expenditure during the period that such
expenditure actually is made and (ii) such book value shall have been included
in Capital Expenditures when such asset was originally acquired, and (g) the
purchase price of property purchased during such period to the extent the
consideration therefor consists of any combination of (i) used or surplus
property traded in at the time of such purchase and (ii) the proceeds of a
concurrent sale of used or surplus property, in each case, in the ordinary
course of business.

 

4

 

“Capital Lease Obligations”
of any person shall mean the obligations of such person to pay rent or other
amounts under any lease of (or other arrangement conveying the right to use)
real or personal property, or a combination thereof, which obligations are
required to be classified and accounted for as capital leases on a balance
sheet of such person under GAAP, and the amount of such obligations shall be
the capitalized amount thereof determined in accordance with GAAP.

 

“CECF Percentage”
shall mean, with respect to any date, 0%; provided,
however, if the Total Leverage
Ratio as of the end of last fiscal quarter for which financial statements have
been delivered is less than 3.50 to 1.00, then the CECF Percentage with respect
to such date shall mean 25%; provided,
further, however, that if the Total Leverage Ratio
as of the end of last fiscal quarter for which financial statements have been
delivered is less than 3.00, to 1.00, then the CECF percentage with respect to
such date shall mean 50%.

 

A
“Change in Control”
shall be deemed to have occurred if:

 

(a)           the Permitted Investors cease to have the
power, directly or indirectly, to vote or direct the voting of Equity Interests
of Holdings representing a majority of the ordinary voting power for the
election of directors (or equivalent governing body) of Holdings; provided, that the occurrence of the
foregoing event shall not be deemed a Change of Control if,

 

(i)            any time prior to the consummation of a
Qualified Public Offering, and for any reason whatsoever, (A) the Permitted
Investors otherwise have the right, directly or indirectly, to designate (and
do so designate) a majority of the board of directors of Holdings or (B) the
Permitted Investors own, directly or indirectly, of record and beneficially an
amount of Equity Interests of Holdings having ordinary voting power that is
equal to or more than 50% of the amount of Equity Interests of Holdings having
ordinary voting power owned, directly or indirectly, by the Permitted Investors
of record and beneficially as of the Closing Date (determined by taking into
account any stock splits, stock dividends or other events subsequent to the
Closing Date that changed the amount of Equity Interests, but not the
percentage of Equity Interests, held by the Permitted Investors) and such
ownership by the Permitted Investors represents the largest single block of
Equity Interests of Holdings having ordinary voting power held by any person or
related group for purposes of Section 13(d) of the Securities Exchange Act
of 1934, or

 

(ii)           at any time after the consummation of a
Qualified Public Offering, and for any reason whatsoever, (A) no “person” or “group”
(as such terms are used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934 as in effect on the date hereof, but excluding any
employee benefit plan of such person and its Subsidiaries, and any person or
entity acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan), excluding the Permitted Investors, shall
become the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under
such Act), directly or indirectly, of more than the 

 

5

 

greater
of (x) 35% of outstanding Equity Interests of Holdings having ordinary voting
power and (y) the percentage of the then outstanding Equity Interests of
Holdings having ordinary voting power owned, directly or indirectly,
beneficially and of record by the Permitted Investors, and (B) during each
period of twelve consecutive months, a majority of the board of directors of
Holdings shall consist of the Continuing Directors; or

 

(b)           any change in control (or similar event,
however denominated) with respect to Holdings, the Borrower or any Subsidiary
shall occur under and as defined in the Second Lien Credit Agreement or in
respect of Material Indebtedness of Holdings, the Borrower or any Subsidiary;
or

 

(c)           Holdings shall directly own, beneficially and
of record, less than 100% of the issued and outstanding Equity Interests of the
Borrower.

 

“Change in Law” shall
mean (a) the adoption of any law, rule or regulation after the date of this
Agreement, (b) any change in any law, rule or regulation or in the
interpretation or application thereof by any Governmental Authority after the
date of this Agreement or (c) compliance by any Lender or the Issuing Bank (or,
for purposes of Section 2.14, by any lending office of such Lender or by such
Lender’s or Issuing Bank’s holding company, if any) with any request, guideline
or directive (whether or not having the force of law) of any Governmental
Authority made or issued after the date of this Agreement.

 

“Class”, when used in
reference to any Loan or Borrowing, refers to whether such Loan, or the Loans
comprising such Borrowing, are Revolving Loans, Term Loans or Swingline Loans,
and, when used in reference to any Commitment, refers to whether such
Commitment is a Revolving Credit Commitment, Term Loan Commitment or Swingline
Commitment.

 

“Closing Date” shall
mean June 30, 2006.

 

“Code” shall mean the
Internal Revenue Code of 1986, as amended from time to time, or any legislation
successor thereto.

 

“Collateral” shall
mean all property and assets of the Loan Parties, now owned or hereafter
acquired, upon which a Lien is purported to be created by any Security
Document, and shall include the Mortgaged Properties.

 

“Collateral Agent”
shall have the meaning assigned to such term in the preamble.

 

“Commitments” shall
mean the Revolving Credit Commitments, Term Loan Commitments and Swingline
Commitment.

 

“Commitment Fee” shall
have the meaning assigned to such term in Section 2.05(a).

 

“Company” shall have
the meaning assigned to such term in the preamble.

 

6

 

“Confidential Information Memorandum”
shall mean the Confidential Information Memorandum dated June 2006, relating to
the syndication of the Credit Facilities.

 

“Consolidated EBITDA”
shall mean, for any period, Consolidated Net Income for such period plus

 

(a)           without duplication and to the extent
deducted in determining such Consolidated Net Income, the sum of

 

(i)            consolidated interest expense for such
period,

 

(ii)           consolidated income, franchise or similar tax
expense for such period,

 

(iii)          foreign currency translation gain or loss,

 

(iv)          all amounts attributable to depreciation and
amortization for such period,

 

(v)           fees and expenses incurred in connection with
the Transactions, any Investment permitted under Section 6.04, the issuance of
Equity Interests or Indebtedness or any exchange, refinancing or other early
extinguishment of Indebtedness permitted by this Agreement (in each case,
whether or not consummated),

 

(vi)          any non-cash charges, including those
resulting from any amortization, write-up, write-down or write-off of assets
with respect to assets revalued upon the application of purchase accounting
(including tangible and intangible assets, goodwill, deferred financing costs
and inventory (including any adjustment reflected in the “cost of goods sold”
or similar line item of the financial statements)) in connection with the
Transactions, Permitted Acquisitions or any merger, consolidation or similar
transaction not prohibited by this Agreement, but excluding the write-down of
current assets in the ordinary course of business,

 

(vii)         letter of credit fees,

 

(viii)        non-recurring or unusual cash charges
(including startup costs) for such period in an amount not to exceed
$3,500,000,

 

(ix)           to the extent actually reimbursed, expenses
incurred to the extent covered by indemnification provisions in any agreement
in connection with a Permitted Acquisition,

 

(x)            to the extent covered by insurance, expenses
with respect to liability or casualty events, business interruption or product
recalls,

 

7

 

(xi)           management fees permitted under Section 6.07,

 

(xii)          any unrealized losses on Hedging Agreements;
and

 

(xiii)         if applicable, the Cure Amount in accordance
with Article VII,

 

minus
(b) without duplication, the sum of

 

(i)            all cash payments made during such period on
account of non-cash charges added to Consolidated Net Income (except as set
forth in clause (a)(viii) above) in a previous period,

 

(ii)           any Restricted Payments made by Holdings to
Parent pursuant to Section 6.06(a)(viii) (A), (F) and (G),

 

(iii)          non-recurring or unusual gains for such
period to the extent added in determining Consolidated Net Income, and

 

(iv)          any unrealized gains on Hedging Agreements;

 

provided, however, that for the purposes of determining the
Total Leverage Ratio, (A) there shall be included in determining Consolidated
EBITDA for any period, without duplication, the Consolidated EBITDA of any
person, line of business or facility acquired (other than in the ordinary
course of business) by the Borrower or any of its Subsidiaries during such
period on a Pro Forma Basis, and (B) there shall be excluded in determining
Consolidated EBITDA for any period, without duplication, the Consolidated EBITDA
of any person, line of business or facility that is the subject of an Asset
Sale by the Borrower or any of its Subsidiaries during such period on a Pro
Forma Basis.

 

For
purposes of determining the Interest Coverage Ratio, the Total Leverage Ratio
and any Pro Forma Basis calculations required by this Agreement, Consolidated
EBITDA of Holdings will be deemed to be equal to (i) for the fiscal
quarter ended on September 30, 2005, $45.7 million, (ii) for the
fiscal quarter ended on December 31, 2005, $45.7 million,
(iii) for the fiscal quarter ended on March 31, 2006,
$45.7 million, and (iv) for the fiscal quarter ended June 30, 2006,
$45.7 million.

 

“Consolidated Interest Expense”
shall mean, for any period with respect to any person (a) the interest expense
payable in cash for such period, determined on a consolidated basis in
accordance with GAAP (including imputed interest expense in respect of Capital
Lease Obligations and Synthetic Lease Obligations but excluding (i) fees
and expenses associated with the consummation of the Transactions, (ii) annual
agency fees paid to the Administrative Agent, and (iii) fees and expenses
associated with any Investment permitted by Section 6.04, issuance of
Indebtedness or Equity Interests, whether or not consummated minus (b) interest
income earned during such period which is paid or payable in cash. For purposes
of the foregoing, (A) interest expense shall be determined after giving
effect to any accruals during such period by such person with respect to
interest rate Hedging Agreements that represent amounts that are paid or 

 

8

 

payable
or receivable in cash and (B) Consolidated Interest Expense shall exclude
upfront costs associated with any Hedging Agreement.

 

“Consolidated Net Income”
shall mean, for any period with respect to any person, the net income or loss
of such person for such period determined on a consolidated basis in accordance
with GAAP; provided, that there
shall be excluded (without duplication):

 

(a)           the income of any Subsidiary (other than a
Loan Party) to the extent that the declaration or payment of dividends or
similar distributions by such Subsidiary of that income is not at the time
permitted by operation of the terms of its charter or any agreement,
instrument, judgment, decree, statute, rule or governmental regulation
applicable to such Subsidiary,

 

(b)           the income or loss of any person accrued
prior to the date (i) it becomes a Subsidiary or is merged into or consolidated
with such person or (ii) its assets are acquired by such person or its
Subsidiaries,

 

(c)           the income or loss in respect of any
Investment in a joint venture (other than a Subsidiary) except to the extent of
the amount of dividends or other distributions actually paid to such person
during such period,

 

(d)           after-tax gains and losses realized upon the
sale or other disposition of any property that is sold or otherwise disposed of
other than in the ordinary course of business, and

 

(e)           extraordinary, gains, losses or charges.

 

“Continuing Directors”
means the directors of Holdings on the Closing Date, as elected or appointed
after giving effect to the Acquisition and the other transactions contemplated
hereby, and each other director, if, in each case, such other director’s
nomination for election to the board of directors of Holdings is recommended by
a majority of the then Continuing Directors or such other director receives the
vote of the Permitted Investors in his or her election by the stockholders of
Holdings.

 

“Control” shall mean
the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a person, whether through the
ownership of voting securities, by contract or otherwise, and the terms “Controlling” and “Controlled” shall
have meanings correlative thereto.

 

“Corporate Taxpayer”
shall mean a standalone corporation that is the “common parent” of a
consolidated, combined, unitary or other similar (as the case may be) Tax group
that includes the Borrower and the Subsidiaries.

 

“Credit Event” shall
have the meaning assigned to such term in Section 4.01.

 

“Credit Facilities”
shall mean the revolving credit, swingline, letter of credit and term loan
facilities provided for by this Agreement.

 

9

 

“Credit Increase” has
the meaning set forth in Section 2.24(a).

 

“Cumulative Excess Cash Flow”
as of any date, an amount equal to the excess, if any, of (a) the sum of
Excess Cash Flow for each fiscal year of Holdings ended on or after December 31,
2007 and prior to such date for which audited financial statements have been
delivered pursuant to Section 5.04 over (b) the aggregate principal
amount of all optional prepayments of Term Loans and Revolving Loans (to the
extent accompanied by a permanent reduction of the Revolving Credit
Commitments) made during such fiscal year; provided,
that the excess of (a) over (b) shall not be less than zero for any fiscal
year.

 

“Cure Amount” shall
have the meaning assigned to such term in Article VII.

 

“Cure Right” shall
have the meaning assigned to such term in Article VII.

 

“Current Assets” shall
mean, at any time, the consolidated current assets (other than cash, Permitted
Investments) of Holdings, the Borrower and the Subsidiaries.

 

“Current Liabilities”
shall mean, at any time, the consolidated current liabilities of Holdings, the
Borrower and the Subsidiaries at such time, but excluding, without duplication,
(a) the current portion of any long term Indebtedness and (b) outstanding
Revolving Loans and Swingline Loans.

 

“Declined Proceeds”
shall have the meaning assigned to such term in Section 2.13(f).

 

“Default” shall mean
any event or condition which constitutes an Event of Default or which upon
notice, lapse of time or both would constitute an Event of Default.

 

“Defaulting Lender”
shall mean any Lender that (a) has failed to fund any portion of the Revolving
Loans, Term Loans or participations in the L/C Exposure required to be funded
by it hereunder within one Business Day of the date required to be funded by it
hereunder, (b) has otherwise failed to pay to the Administrative Agent or any
other Lender any other amount required to be paid by it hereunder within one
Business Day of the date when due, unless the subject of a good faith dispute
or (c) is insolvent or is the subject of a bankruptcy or insolvency proceeding.

 

“Disqualified Institutions”
shall mean those institutions set forth on Schedule 1.01(c) hereto.

 

“Disqualified Stock”
shall mean any Equity Interest that, by its terms (or by the terms of any
security or other Equity Interest into which it is convertible or for which it
is exchangeable), or upon the happening of any event, (a) matures (excluding
any maturity as the result of an optional redemption by the issuer thereof) or
is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise,
or is redeemable at the option of the holder thereof, in whole or in part, or
requires the payment of any cash dividend or any other scheduled payment
constituting a return of capital, in each case at any time on or prior to the
date which is ninety-one (91) days after the Term Loan 

 

10

 

Maturity
Date, or (b) is convertible into or exchangeable (unless at the sole option of
the issuer thereof) for (i) Indebtedness or (ii) any Equity Interest
referred to in clause (a) above, in each case at any time prior to the date
which is ninety-one (91) days after the Term Loan Maturity Date.

 

“dollars” or “$” shall mean lawful
money of the United States of America.

 

“Domestic Subsidiaries”
shall mean all Subsidiaries incorporated or organized under the laws of the
United States of America, any State thereof or the District of Columbia.

 

“ECF Percentage” shall
mean, with respect to any fiscal year, 50%; provided,
however, if the Total Leverage
Ratio as of the end of a fiscal year is less than 2.00 to 1.00, then the ECF
Percentage with respect to such fiscal year shall mean 25%.

 

“Environmental Laws”
shall mean all applicable Federal, state, local and foreign laws (including
common law), treaties, regulations, rules, ordinances, codes, decrees,
judgments, directives, orders (including consent orders), and agreements having
the force and effect of law in each case, relating to protection of the
environment, natural resources, or to human health and safety as it relates to
Hazardous Materials exposure, the presence or Release of Hazardous Materials in
the environment, or the generation, manufacture, processing, distribution, use,
treatment, storage, transport, recycling or handling of, or the arrangement for
such activities with respect to, Hazardous Materials.

 

“Environmental Liability”
shall mean all liabilities, obligations, damages, losses, claims, actions,
suits, judgments, orders, fines, penalties, fees, expenses and costs (including
administrative oversight costs, natural resource damages and remediation
costs), whether contingent or otherwise, arising out of or relating to
(a) compliance or non-compliance with any Environmental Law, (b) the
generation, use, handling, transportation, storage, treatment or disposal of
any Hazardous Materials, (c) exposure to any Hazardous Materials,
(d) the Release of any Hazardous Materials or (e) any contract,
agreement or other consensual arrangement pursuant to which liability is
assumed or imposed with respect to any of the foregoing.

 

“Equity Contribution” shall
mean the cash amounts contributed by the Investors towards the payment of the
purchase price for the Acquisition.

 

“Equity Interests”
shall mean shares of capital stock, partnership interests, membership interests
in a limited liability company, beneficial interests in a trust or other equity
interests in any person.

 

“ERISA” shall mean the
Employee Retirement Income Security Act of 1974, as the same may be amended
from time to time.

 

“ERISA Affiliate”
shall mean any trade or business (whether or not incorporated) that, together
with the Borrower, is treated as a single employer under Section 414(b) or
(c) of the Code, or solely for purposes of Section 302 of ERISA and
Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.

 

11

 

“ERISA Event” shall
mean (a) any “reportable event”, as defined in Section 4043 of ERISA
or the regulations issued thereunder, with respect to a Plan (other than an
event for which the 30-day notice period is waived); (b) the existence
with respect to any Plan of an “accumulated funding deficiency” (as defined in
Section 412 of the Code or Section 302 of ERISA), whether or not
waived; (c) the filing pursuant to Section 412(d) of the Code or
Section 303(d) of ERISA of an application for a waiver of the minimum
funding standard with respect to any Plan; (d) the incurrence by the
Borrower or any of its ERISA Affiliates of any liability under Title IV of
ERISA with respect to the termination of any Plan or the withdrawal or partial
withdrawal of the Borrower or any of its ERISA Affiliates from any Plan or
Multiemployer Plan; (e) the receipt by the Borrower or any of its ERISA
Affiliates from the PBGC or a plan administrator of any notice relating to the
intention to terminate any Plan or Plans or to appoint a trustee to administer
any Plan; (f) the adoption of any amendment to a Plan that would require
the provision of security pursuant to Section 401(a)(29) of the Code or Section
307 of ERISA; (g) the receipt by the Borrower or any of its ERISA
Affiliates of any notice, or the receipt by any Multiemployer Plan from the
Borrower or any of its ERISA Affiliates of any notice, concerning the
imposition of Withdrawal Liability or a determination that a Multiemployer Plan
is, or is expected to be, insolvent or in reorganization, within the meaning of
Title IV of ERISA; (h) the occurrence of a “prohibited transaction”
(within the meaning of Section 4975 of the Code) with respect to which the
Borrower or any of the Subsidiaries is a “disqualified person” (within the
meaning of Section 4975 of the Code) or with respect to which the Borrower or
any such Subsidiary could otherwise be liable; or (i) any other
extraordinary event or condition with respect to a Plan or Multiemployer Plan
(other than liabilities arising under clauses (a) through (h) above and
any liabilities for routine plan contributions and claims for benefits) that
could result in liability of the Borrower or any Subsidiary.

 

“Eurodollar”, when
used in reference to any Loan or Borrowing, refers to whether such Loan, or the
Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate.

 

“Event of Default”
shall have the meaning assigned to such term in Article VII.

 

“Excess Cash Flow”
shall mean, for any fiscal year of Holdings, the excess of:

 

(a)           the sum, without duplication, of

 

(i)            Consolidated EBITDA for such fiscal year,

 

(ii)           reductions to noncash working capital of
Holdings and its Subsidiaries for such fiscal year (i.e., the decrease, if any, in Current Assets minus Current
Liabilities from the beginning to the end of such fiscal year),

 

(iii)          foreign currency translation gains received
in cash, to the extent not otherwise included in calculating Consolidated
EBITDA, and

 

12

 

(iv)          extraordinary, unusual or nonrecurring cash
gains (other than gains on Asset Sales), to the extent not otherwise included
in calculating Consolidated EBITDA, minus

 

(b)           the sum, without duplication, of

 

(i)            the amount of any taxes payable in cash by
Holdings and its Subsidiaries with respect to such fiscal year (to the extent
not otherwise deducted in calculating Consolidated EBITDA),

 

(ii)           consolidated interest expense for such fiscal
year, to the extent payable in cash and not otherwise deducted in calculating
Consolidated EBITDA,

 

(iii)          foreign currency translation losses payable
in cash, to the extent not otherwise deducted in calculating Consolidated
EBITDA,

 

(iv)          Capital Expenditures made in cash in
accordance with Section 6.10 during such fiscal year, except to the extent
financed with the proceeds of long-term Indebtedness,

 

(v)           permanent repayments of long-term
Indebtedness (other than Loans but including Capital Lease Obligations) made by
the Borrower and the Subsidiaries during such fiscal year, but only to the
extent that such repayments (A) by their terms cannot be reborrowed or redrawn
and (B) are not financed with the proceeds of long-term Indebtedness,

 

(vi)          additions to noncash working capital for such
fiscal year (i.e., the increase,
if any, in Current Assets minus Current Liabilities from the beginning to the
end of such fiscal year),

 

(vii)         Tax Distributions and Specified Tax Payments
paid during such fiscal year, to the extent not otherwise deducted in
calculating Consolidated EBITDA,

 

(viii)        Restricted Payments made by Holdings under
Section 6.06(a)(viii) (other than clause (C) thereof)

 

(ix)           letter of credit fees, to the extent not
otherwise deducted in calculating Consolidated EBITDA,

 

(x)            extraordinary, unusual or nonrecurring cash
charges, to the extent not otherwise deducted in calculating Consolidated
EBITDA,

 

(xi)           fees and expenses incurred in connection with
the Transactions, any Investment permitted under Section 6.04, the issuance of
Equity Interests or Indebtedness or any exchange, refinancing or other early
extinguishment of Indebtedness permitted by this Agreement (in each case,
whether or not consummated),

 

13

 

(xii)          cash charges added to Consolidated EBITDA
pursuant to clause (a)(viii) thereof,

 

(xiii)         management fees permitted by Section 6.07, to
the extent not otherwise deducted in calculating Consolidated EBITDA,

 

(xiv)        cash used to consummate a Permitted
Acquisition (including, without duplication, cash used to make a Restricted
Payment under Section 6.06(a)(viii)(C)) except to the extent financed with
the proceeds of long-term Indebtedness,

 

(xv)         cash used to make Investments pursuant to
Section 6.04(o), except to the extent financed with the proceeds of the
issuance of Equity Interests or Cumulative Excess Cash Flow,

 

(xvi)        cash expenditures in respect of Hedging
Agreements, to the extent not otherwise deducted in calculating Consolidated
EBITDA,

 

(xvii)       Cure Amount, if any, and

 

(xviii)      to the extent added to Consolidated Net
Income, cash losses from any sale or disposition outside the ordinary course of
business.

 

“Excluded Taxes” shall
mean, with respect to the Administrative Agent, any Lender, the Issuing Bank or
any other recipient of any payment to be made by or on account of any
obligation of the Borrower hereunder, (a) income or franchise taxes
imposed on (or measured by) its net income or any similar taxes as a result of
a present or former connection between such recipient and the jurisdiction
imposing such tax (or any political subdivision thereof), other than any such
connection arising solely from such recipient having executed, delivered or
performed its obligations or received a payment under, or enforced, this
Agreement or any other Loan Document, (b) any branch profits taxes imposed
by the United States of America or any similar tax imposed by any other
jurisdiction described in clause (a) above and (c) in the case of a
Foreign Lender (other than an assignee pursuant to a request by the Borrower
under Section 2.21(a)), any withholding tax that (i) is imposed on
amounts payable to such Foreign Lender at the time such Foreign Lender becomes
a party to this Agreement (or designates a new lending office) or (ii) is
attributable to such Foreign Lender’s failure to comply with
Section 2.20(e) without regard to the proviso of the first sentence or the
last sentence therein, except in the case of clause (i) to the extent that
such Foreign Lender (or its assignor, if any) was entitled, at the time of
designation of a new lending office (or assignment), to receive additional
amounts from the Borrower with respect to such withholding tax pursuant to
Section 2.20(a).

 

“Existing Debt” shall
mean (a) all Indebtedness under the Credit Agreement dated as of
February 24, 2005, as amended, among the Company, the Seller, the lenders
party thereto, and Credit Suisse and (b) certain existing indebtedness of
the Seller in an aggregate outstanding principal amount of approximately
$53,700,000.

 

14

 

“Existing Letters of Credit”
shall mean all letters of credit issued and outstanding on the Closing Date
under the Credit Agreement dated as of February 24, 2005, as amended,
among the Company, the Seller, the lenders party thereto, and Credit Suisse.

 

“Federal Funds Effective Rate”
shall mean, for any day, the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers, as published on the next succeeding Business Day by the
Federal Reserve Bank of New York, or, if such rate is not so published for
any day that is a Business Day, the average of the quotations for the day for
such transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it.

 

“Fee Letter” shall
mean the Second Amended and Restated Fee Letter, dated June 13, 2006,
among the Borrower, Credit Suisse, Bank of America, N.A., Goldman Sachs Credit
Partners, L.P., Morgan Stanley Senior Funding, Inc., Morgan Stanley & Co.
Incorporated and the Arrangers.

 

“Fees” shall mean the
Commitment Fees, the Administration Fees, the L/C Participation Fees and the
Issuing Bank Fees.

 

“Financial Officer” of
any person shall mean the chief executive officer, chief financial officer, any
vice president, principal accounting officer, treasurer, assistant treasurer or
controller of such person.

 

“Foreign Lender” shall
mean any Lender that is organized under or whose primary lending office is
subject to the laws of a jurisdiction other than that in which the Borrower is
located. For purposes of this definition, the United States of America, each
State thereof and the District of Columbia shall be deemed to constitute a
single jurisdiction.

 

“Foreign Subsidiary”
shall mean any Subsidiary that is not a Domestic Subsidiary.

 

“GAAP” shall mean
United States generally accepted accounting principles.

 

“Governmental Authority”
shall mean the government of the United States of America or any other nation,
any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other
entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government.

 

“Granting Lender”
shall have the meaning assigned to such term in Section 9.04(i).

 

“Guarantee” of or by
any person shall mean any obligation, contingent or otherwise, of such person
guaranteeing or having the economic effect of guaranteeing any Indebtedness or
other obligation of any other person (the “primary
obligor”) in any manner, whether directly or indirectly, and
including any obligation of such person, 

 

15

 

direct
or indirect, (a) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness or other obligation or to purchase
(or to advance or supply funds for the purchase of) any security for the
payment of such Indebtedness or other obligation, (b) to purchase or lease
(including pursuant to Synthetic Lease Obligations, if applicable) property,
securities or services for the purpose of assuring the owner of such
Indebtedness or other obligation of the payment of such Indebtedness or other
obligation, (c) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to
enable the primary obligor to pay such Indebtedness or other obligation or
(d) as an account party in respect of any letter of credit or letter of
guaranty issued to support such Indebtedness or other obligation; provided, however,
that the term “Guarantee” shall not include endorsements for collection or
deposit in the ordinary course of business or customary and reasonable
indemnity obligations in effect on the Closing Date or entered into in
connection with any acquisition or disposition of assets permitted under this
Agreement. The amount of any Guarantee shall be deemed to be an amount equal to
the stated or determinable amount of the primary obligation, or portion
thereof, in respect of which such Guarantee is made or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof
as determined by the guaranteeing person in good faith.

 

“Guarantee and Collateral Agreement”
shall mean the First Lien Guarantee and Collateral Agreement, substantially in
the form of Exhibit D, among the Loan Parties party thereto and the
Collateral Agent for the benefit of the Secured Parties.

 

“Guarantors” shall
mean Holdings and the Subsidiary Guarantors.

 

“Hazardous Materials”
shall mean any petroleum (including crude oil or fraction thereof) or petroleum
products or byproducts, or any pollutant, contaminant, or hazardous or toxic
substances, materials or wastes defined, or regulated as such by, or pursuant
to, any Environmental Law, or which require removal, remediation or reporting
under any Environmental Law, including asbestos, or asbestos containing
material, radioactive material, polychlorinated biphenyls and urea formaldehyde
insulation.

 

“Hedging Agreement”
shall mean any agreement with respect to any swap, forward, future, cap,
collar, floor or derivative transaction or option or similar agreement
involving, or settled by reference to, one or more rates, currencies, fuel or
other commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk
or value or any similar transaction or any combination of these transactions; provided, however,
that no phantom stock or similar plan providing for payments and on account of
services provided by current or former directors, officers, members of
management, employees or consultants of Holdings, the Borrower or any
Subsidiary shall be a Hedging Agreement.

 

“Holdings” shall mean
Hawkeye Intermediate, LLC.

 

“Incremental Amendment”
has the meaning set forth in Section 2.24(b).

 

“Incremental Facility Closing Date”
has the meaning set forth in Section 2.24(a).

 

16

 

“Incremental Term Loans”
has the meaning set forth in Section 2.24(b).

 

“Indebtedness” of any
person shall mean, without duplication, (a) all obligations of such person
for borrowed money, (b) all obligations of such person evidenced by bonds,
debentures, notes or similar instruments, (c) all obligations of such
person under conditional sale or other title retention agreements relating to
property or assets purchased by such person, (d) all obligations of such
person issued or assumed as the deferred purchase price of property or services
(excluding (i) trade accounts payable and accrued obligations incurred in
the ordinary course of business and (ii) any earn-out obligation until
such obligation appears in the liabilities section of the balance sheet of such
person, (iii) any earn-out obligation that appears in the liabilities
section of the balance sheet to the extent (A) such person is indemnified
for the payment thereof by a solvent person reasonably acceptable to the
Administrative Agent or (B) amounts applied to the payment therefor are in
escrow), (e) all Indebtedness of others secured by any Lien on property
owned or acquired by such person, whether or not the obligations secured
thereby have been assumed, (f) all Guarantees by such person of
Indebtedness of others, (g) all Capital Lease Obligations of such person,
(h) all obligations of such person as an account party in respect of
letters of credit or letters of guaranty and (i) all obligations of such
person in respect of bankers’ acceptances. The Indebtedness of any person shall
include the Indebtedness of any partnership in which such person is a general
partner to the extent such person is liable therefor as a result of such person’s
ownership interest in, or other relationship with, such other person, except to
the extent the terms of such Indebtedness provide that such person is not
liable therefor. The amount of Indebtedness of any person under clause (e)
above shall be deemed to equal the lesser of (x) the aggregate unpaid
amount of such Indebtedness secured by such Lien and (y) the fair market
value of the property encumbered thereby as determined by such person in good
faith.

 

“Indemnified Taxes”
shall mean Taxes other than Excluded Taxes and Other Taxes.

 

“Intellectual Property Security
Agreement” shall mean any of the following agreements executed
on or after the Closing Date (a) a First Lien Trademark Security Agreement
substantially in the form of Exhibit H-1, (b) a First Lien Patent Security
Agreement substantially in the form of Exhibit H-2 or (c) a First
Lien Copyright Security Agreement substantially in the form of
Exhibit H-3.

 

“Intercreditor Agreement”
shall mean the Intercreditor Agreement, substantially in the form of
Exhibit E, among the Borrower, Holdings, the Subsidiaries of the Borrower
from time to time party thereto, the Collateral Agent and the Collateral Agent
(under and as defined in the Second Lien Credit Agreement).

 

“Interest Coverage Ratio”
shall mean, with respect to Holdings and its Subsidiaries as of the end of any
fiscal quarter of Holdings for the four fiscal quarters then ended, the ratio
of (a) Consolidated EBITDA for such period to (b) Consolidated
Interest Expense for such period. For purposes of determining the Interest
Coverage Ratio for the period of four consecutive quarters ended on
September 30, 2006, 

 

17

 

December 31,
2006 and March 31, 2007, Consolidated Interest Expense shall be deemed to
be equal to (i) the Consolidated Interest Expense for the fiscal quarter
ended on or about September 30, 2006, multiplied by 4, (ii) the Consolidated
Interest Expense for the two consecutive fiscal quarters ended on or about
December 31, 2006, multiplied by 2 and (iii) the Consolidated
Interest Expense for the three consecutive fiscal quarters ended on or about
March 31, 2007, multiplied by 4/3, respectively.

 

“Interest Payment Date”
shall mean (a) with respect to any ABR Loan (including any Swingline
Loan), the last day of each March, June, September and December, commencing
with September 30, 2006, and (b) with respect to any Eurodollar Loan,
the last day of the Interest Period applicable to the Borrowing of which such
Loan is a part and, in the case of a Eurodollar Borrowing with an Interest
Period of more than three months’ duration, each day that would have been an
Interest Payment Date had successive Interest Periods of three months’ duration
been applicable to such Borrowing.

 

“Interest Period”
shall mean, with respect to any Eurodollar Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically
corresponding day (or, if there is no numerically corresponding day, on the
last day) in the calendar month that is 1, 2, 3 or 6 (or 9 or
12, if agreed to or available to all of the participating Lenders) months
thereafter, as the Borrower may elect; provided,
however, that if any Interest
Period would end on a day other than a Business Day, such Interest Period shall
be extended to the next succeeding Business Day unless such next succeeding
Business Day would fall in the next calendar month, in which case such Interest
Period shall end on the next preceding Business Day. Interest shall accrue from
and including the first day of an Interest Period to but excluding the last day
of such Interest Period. For purposes hereof, the date of a Borrowing initially
shall be the date on which such Borrowing is made and thereafter shall be the
effective date of the most recent conversion or continuation of such Borrowing.

 

“Investments” shall
have the meaning assigned to such term in Section 6.04.

 

“Investors” shall have
the meaning assigned to such term in the recitals.

 

“Issuing Bank” shall
mean, as the context may require, (a) Credit Suisse, acting through any of
its Affiliates or branches, in its capacity as the issuer of Letters of Credit
hereunder, and (b) any other Lender that may become an Issuing Bank
pursuant to Section 2.23(i) or 2.23(k), with respect to Letters of Credit
issued by such Lender. The Issuing Bank may, in its discretion, arrange for one
or more Letters of Credit to be issued by Affiliates or branches of the Issuing
Bank, in which case the term “Issuing Bank” shall include any such Affiliate or
branch with respect to Letters of Credit issued by such Affiliate or branch.

 

“Issuing Bank Fees”
shall have the meaning assigned to such term in Section 2.05(c).

 

“L/C Backstop” shall
mean, in respect of any Letter of Credit, (a) a letter of credit delivered
to the Issuing Bank which may be drawn by the Issuing Bank to satisfy any 

 

18

 

obligations
of the Borrower in respect of such Letter of Credit, which letter of credit
shall be in an amount equal to 104.0% of the amount of such Letter of Credit
and shall be issued by a bank reasonably satisfactory to, and shall be in form
and substance reasonably satisfactory to, the Issuing Bank or (b) cash or
Permitted Investments deposited with the Issuing Bank to satisfy any obligation
of the Borrower in respect of such Letter of Credit, in an amount equal to
104.0% of the amount of such Letter of Credit.

 

“L/C Commitment” shall
mean the commitment of the Issuing Bank to issue Letters of Credit pursuant to
Section 2.23.

 

“L/C Fee Payment Date”
shall have the meaning assigned to such term in Section 2.05(c).

 

“L/C Disbursement”
shall mean a payment or disbursement made by the Issuing Bank pursuant to a
Letter of Credit.

 

“L/C Exposure” shall
mean at any time the sum of (a) the aggregate undrawn amount of all
outstanding Letters of Credit at such time and (b) the aggregate principal
amount of all L/C Disbursements that have not yet been reimbursed at such time.
The L/C Exposure of any Revolving Credit Lender at any time shall equal its Pro
Rata Percentage of the aggregate L/C Exposure at such time.

 

“L/C Participation Fee”
shall have the meaning assigned to such term in Section 2.05(c).

 

“Lenders” shall mean
(a) the persons listed on Schedule 2.01 (other than any such person
that has ceased to be a party hereto pursuant to an Assignment and Acceptance)
and (b) any person that has become a party hereto pursuant to an
Assignment and Acceptance. Unless the context clearly indicates otherwise, the
term “Lenders” shall include the Swingline Lender.

 

“Letter of Credit”
shall mean any letter of credit issued (or, in the case of an Existing Letter
of Credit, deemed issued) pursuant to Section 2.23.

 

“LIBO Rate” shall
mean, with respect to any Eurodollar Borrowing for any Interest Period, the
rate per annum determined by the Administrative Agent at approximately
11:00 a.m. (London time) on the date that is two Business Days prior to
the commencement of such Interest Period by reference to the British Bankers’
Association Interest Settlement Rates for deposits in dollars (as set forth by
Reuters) for a period equal to such Interest Period; provided, that to the extent that an interest rate is not
ascertainable pursuant to the foregoing provisions of this definition, the “LIBO
Rate” shall be the interest rate per annum determined by the Administrative
Agent to be the average of the rates per annum at which deposits in dollars are
offered for such relevant Interest Period to major banks in the London
interbank market in London, England by the Administrative Agent at
approximately 11:00 a.m. (London time) on the date that is two Business
Days prior to the beginning of such Interest Period.

 

19

 

“Lien” shall mean,
with respect to any asset, (a) any mortgage, deed of trust, lien
(statutory or otherwise), pledge, hypothecation, encumbrance, collateral
assignment, charge or security interest in, on or of such asset, and
(b) the interest of a vendor or a lessor under any conditional sale
agreement, capital lease or title retention agreement (or any financing lease
having substantially the same economic effect as any of the foregoing) relating
to such asset.

 

“Loan Documents” shall
mean this Agreement, the Security Documents and the promissory notes, if any,
executed and delivered pursuant to Section 2.04(e).

 

“Loan Parties” shall
mean the Borrower and the Guarantors.

 

“Loans” shall mean the
Revolving Loans, the Term Loans and the Swingline Loans.

 

“Margin Stock” shall
have the meaning assigned to such term in Regulation U.

 

“Material Adverse Effect”
shall mean (a) a material adverse effect on the business, assets,
operations or financial condition of Holdings and its Subsidiaries, taken as a
whole, (b) a material adverse effect on the ability of the Loan Parties
(taken as a whole) to perform any of their material obligations under any Loan
Documents or (c) a material adverse effect on any material rights or remedies
available to the Lenders under any Loan Document taken as a whole.

 

“Material Indebtedness”
shall mean Indebtedness (other than the Loans and Letters of Credit), or
obligations in respect of one or more Hedging Agreements, of any one or more of
Holdings and its Subsidiaries in an aggregate principal amount exceeding
$20,000,000. For purposes of determining Material Indebtedness, the “principal
amount” of the obligations of Holdings, the Borrower or any Subsidiary in
respect of any Hedging Agreement at any time shall be the maximum aggregate
amount (giving effect to any netting agreements) that Holdings, the Borrower or
such Subsidiary would be required to pay if such Hedging Agreement were
terminated at such time.

 

“Merger” shall mean
the merger of Merger Sub with and into the Company, with the Company as the
surviving entity of such merger.

 

“Merger Sub” shall
have the meaning assigned to such term in the preamble.

 

“Moody’s” shall mean
Moody’s Investors Service, Inc., or any successor thereto.

 

“Mortgaged Properties”
shall mean, initially, the fee owned real properties of the Loan Parties
specified on Schedule 1.01(b), and shall include each other parcel of fee
owned real property and improvements thereto with respect to which a Mortgage
is granted to secure the Obligations.

 

“Mortgages” shall mean
the mortgages, deeds of trust and other security documents granting a Lien on
any fee owned real property or interest therein to secure 

 

20

 

the
Obligations, each substantially in the form of Exhibit F or such other
form as shall be reasonably approved by the Collateral Agent.

 

“Multiemployer Plan”
shall mean a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

 

“Net Cash Proceeds”
shall mean (a) with respect to any Asset Sale, the proceeds thereof in the
form of cash and Permitted Investments (including any such proceeds
subsequently received (as and when received) in respect of noncash
consideration initially received), net of (i) out-of-pocket expenses
(including reasonable and customary broker’s fees or commissions, investment
banking fees, consultant fees, legal fees, survey costs, title insurance
premiums, and related search and recording charges, transfer, recording and
similar taxes incurred by Holdings and the Subsidiaries in connection therewith
and the Borrower’s good faith estimate of income taxes paid or payable in
connection with such sale) incurred in connection with such Asset Sale
(including, in the case of any Asset Sale in respect of property of any Foreign
Subsidiary, taxes payable upon the repatriation of any such proceeds),
(ii) amounts provided as a reserve, in accordance with GAAP, against any
liabilities under any indemnification obligations or purchase price adjustment
associated with such Asset Sale (provided,
that to the extent and at the time any such amounts are released from such
reserve, such amounts shall constitute Net Cash Proceeds), (iii) the
principal amount, premium or penalty, if any, interest and other amounts on any
Indebtedness which is secured by the asset sold and which is repaid (other than
(A) any such Indebtedness assumed or repaid by the purchaser and
(B) Indebtedness hereunder or under the Second Lien Credit Agreement); and
(b) with respect to any incurrence of Indebtedness or issuance of any
Equity Interests, the cash proceeds thereof, net of all taxes (including, in
the case of such Indebtedness incurred, or Equity Interests issued, by a
Foreign Subsidiary, taxes payable upon the repatriation of any such proceeds) and
customary fees, commissions, costs and other expenses incurred by Holdings, the
Borrower and the Subsidiaries in connection therewith.

 

“Not Otherwise Applied”
means, with reference to any amount of Net Cash Proceeds of any transaction or
event or of Cumulative Excess Cash Flow, that such amount was not
(a) required to be applied to prepay the Loans pursuant to
Section 2.13, or the “Loans” pursuant to and as defined in the Second Lien
Credit Agreement and (b) previously applied in determining the permissibility
of a transaction under the Loan Documents where such permissibility was (or may
have been or concurrently will be) contingent on receipt of such amount or
utilization of such amount for a specified purpose.

 

“Obligations” shall
mean all obligations defined as “Obligations” in the Guarantee and Collateral
Agreement and the other Security Documents.

 

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

 

21

 

“Parent” shall mean a
person formed for the purpose of owning all of the Equity Interests, directly
or indirectly, of Holdings; provided,
however, that any such person
shall cease to be the “Parent” at any time that it owns, directly or
indirectly, less than all of the Equity Interests of Holdings.

 

“PBGC” shall mean the
Pension Benefit Guaranty Corporation referred to and defined in ERISA.

 

“Permitted Acquisition”
shall mean any acquisition by the Borrower or any Subsidiary (or Holdings so
long as Holdings complies with Section 6.06(a)(viii)(C)) of all or substantially
all the assets of, or all the Equity Interests in, a Person or division or line
of business of a Person if, immediately after giving effect thereto,
(a) no Default or Event of Default has occurred and is continuing or would
result therefrom, (b) each Subsidiary formed for purposes of or resulting
from such acquisition shall be a Domestic Subsidiary, (c) all of the
Equity Interests of each Subsidiary formed for the purpose of or resulting from
such acquisition shall be owned directly by the Borrower or a Subsidiary and
all actions required to be taken with respect to each such acquired or newly
formed Subsidiary under Sections 5.09 have been taken, (d) Holdings,
the Borrower and the Subsidiaries are in compliance, on a pro forma basis after giving effect to
such acquisition with the covenants contained in Sections 6.11 and 6.12
recomputed as at the last day of the most recently ended fiscal quarter of
Holdings for which financial statements are available, as if such acquisition
had occurred on the first day of each relevant period for testing such
compliance and (e) the Borrower has delivered to the Administrative Agent
a certificate of a Responsible Officer to the effect set forth in
clauses (a), (b), (c) and (d) above, together with all relevant financial
information for the Person or assets to be acquired and reasonably detailed
calculations demonstrating satisfaction of the requirement set forth in
clause (d) above.

 

“Permitted Investments”
shall mean:

 

(a) direct
obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States of America (or by any agency
thereof to the extent such obligations are backed by the full faith and credit
of the United States of America), in each case maturing within one year from
the date of acquisition thereof;

 

(b) investments
in commercial paper maturing within 270 days from the date of acquisition
thereof and having, at such date of acquisition, the highest credit rating
obtainable from S&P or from Moody’s;

 

(c) investments
in certificates of deposit, banker’s acceptances and time deposits maturing
within one year from the date of acquisition thereof issued or guaranteed by or
placed with, and money market deposit accounts issued or offered by, the
Administrative Agent or any domestic office of any commercial bank organized
under the laws of the United States of America or any State thereof that has a
combined capital and surplus and undivided profits of not less than
$500,000,000;

 

22

 

(d) fully
collateralized repurchase agreements with a term of not more than 30 days
for securities described in clause (a) above and entered into with a
financial institution satisfying the criteria of clause (c) above;

 

(e) investments
in “money market funds” within the meaning of Rule 2a-7 of the Investment
Company Act of 1940, as amended, substantially all of whose assets are invested
in investments of the type described in clauses (a) through (d) above;

 

(f) investments
in so-called “auction rate” securities rated AAA or higher by S&P or Aaa or
higher by Moody’s and which have a reset date not more than 90 days from the
date of acquisition thereof; and

 

(g) other
short-term investments utilized by Foreign Subsidiaries in accordance with
normal investment practices for cash management in investments of a type
analogous to the foregoing.

 

“Permitted Investors”
shall mean (a) the Sponsor and (b) the members of management of the
Parent, Holdings and its Subsidiaries who are investors, directly or
indirectly, in the Parent or Holdings (collectively, the “Management Investors”);
provided, however, that for purposes of the
definition of “Change in Control”, if the portion of the Equity Interests of
Holdings having ordinary voting power (within the meaning of such definition)
allocable to Management Investors at any time exceeds, in the aggregate, 35% of
the total amount of all such Equity Interests at such time, then the Permitted
Investors shall be deemed not to own or have the power to vote or direct the
voting of the amount of such excess.

 

“Permitted Project Debt”
shall mean Indebtedness of a Project Subsidiary incurred to finance the
acquisition of property relating to and the construction, start up and
operation of an ethanol plant owned by such Project Subsidiary; provided, that (a) such Indebtedness
is not Guaranteed by Holdings, the Borrower or any other Subsidiary;
(b) such Indebtedness is not secured by a Lien on any assets of Holdings,
the Borrower or any other Subsidiary; (c) both immediately prior and after
giving effect to any incurrence of such Indebtedness, (1) no Default shall
exist or result therefrom and (2) Holdings and its Subsidiaries will be in
Pro Forma Compliance with the covenants set forth in Sections 6.11 and
6.12; and (d) all incurrences of Permitted Project Debt, in the aggregate,
may fund the construction, start up or operation of no more than two ethanol
plants.

 

“Permitted Refinancing”
shall mean Indebtedness of Holdings, the Borrower or any Subsidiary issued or incurred
(including by means of the extension or renewal of existing Indebtedness) to
refinance, refund, extend, renew or replace existing Indebtedness (“Refinanced Indebtedness”);
provided, that (a) the
principal amount (or, if incurred with original issue discount, the aggregate
accreted value) of such refinancing, refunding, extending, renewing or
replacing Indebtedness (the “New Indebtedness”) is not greater than the principal
amount of such Refinanced Indebtedness plus the amount of any premiums or penalties
and accrued and unpaid interest paid thereon and reasonable fees and expenses,
in each case associated with such refinancing, refunding, extension, 

 

23

 

renewal
or replacement (or, to the extent such principal amount is greater, the excess
is otherwise permitted by Section 6.01 and shall not constitute Permitted
Refinancing Indebtedness), (b) if such Refinanced Indebtedness is
Permitted Senior Debt, Permitted Subordinated Debt, Indebtedness under the Second
Lien Credit Agreement or any other Indebtedness that is Material Indebtedness
(or a Permitted Refinancing thereof), such New Indebtedness has a final
maturity that is no sooner than the final maturity of, and a weighted average
life to maturity that is not earlier than the remaining weighted average life
of, such Refinanced Indebtedness, (c) if such Refinanced Indebtedness or
any Guarantees thereof are subordinated to the Obligations, such New
Indebtedness and any Guarantees thereof remain so subordinated on terms no less
favorable to the Lenders, (d) the obligors in respect of such Refinanced
Indebtedness immediately prior to such refinancing, refunding, extending,
renewing or replacing are the only obligors on such New Indebtedness, except to
the extent any other person would be permitted to Guarantee such New
Indebtedness under Section 6.01 or to make an Investment in, and such new
obligor’s obligations in respect of such refinancing is treated as an
Investment in, such person pursuant to Section 6.04 and (e) if such
Refinanced Indebtedness is Permitted Senior Debt, Permitted Subordinated Debt,
Indebtedness under the Second Lien Credit Agreement or any other Indebtedness
that is Material Indebtedness (or a Permitted Refinancing thereof), such New
Indebtedness contains mandatory redemption (or similar provisions), covenants
and events of default which, taken as a whole, are determined in good faith by
a Financial Officer of the Borrower to be no less favorable in any material
respect to Holdings, the Borrower or the applicable Subsidiary and the Lenders
than the mandatory redemption (or similar provisions), covenants and events of
default or Guarantees, if any, in respect of such Refinanced Indebtedness; provided, further,
however, that Permitted Refinancing
shall not include Indebtedness of the Borrower or a Guarantor that refinances,
refunds or replaces (i) any Permitted Project Debt or (ii) any other
Indebtedness of a Subsidiary (other than a Subsidiary Guarantor) except to the
extent the Borrower would be permitted to make an Investment in, and such
refinancing is treated as an Investment in, such Subsidiary pursuant to
Section 6.04.

 

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

 

“Plan” shall mean any
employee pension benefit plan as defined in Section 3(2) of ERISA (other
than a Multiemployer Plan) subject to the provisions of Title IV of ERISA
or Section 412 of the Code or Section 307 of ERISA, and in respect of
which the Borrower or any ERISA Affiliate is (or, if such plan were terminated,
would under Section 4069 of ERISA be deemed to be) an “employer” as
defined in Section 3(5) of ERISA.

 

“Pledged Collateral”
shall have the meaning assigned to such term in the Guarantee and Collateral
Agreement.

 

“Post-Acquisition Period”
shall mean, with respect to any Permitted Acquisition, the period beginning on
the date such Permitted Acquisition is consummated and ending 

 

24

 

on
the last day of the sixth full consecutive fiscal quarter immediately following
the date on which such Permitted Acquisition is consummated.

 

“Prepayment Asset Sale”
shall mean any Asset Sale, other than an Asset Sale permitted by
Section 6.05(b) (other than clause (x) thereof), to the extent that
(a) the aggregate Net Cash Proceeds realized in a single transaction or
series of related transactions exceed $1,000,000; and (b) the aggregate
Net Cash Proceeds of all such Asset Sales during any fiscal year exceed
$5,000,000.

 

“Prime Rate” shall
mean the rate of interest per annum announced from time to time by Credit
Suisse as its prime rate in effect at its principal office in New York City;
each change in the Prime Rate shall be effective as of the opening of business
on the date such change is announced as being effective. The Prime Rate is a
reference rate and does not necessarily represent the lowest or best rate
actually available.

 

“Pro Forma Basis”, “Pro Forma Compliance”
and “Pro Forma Effect”
mean, with respect to compliance with any test or covenant hereunder in respect
of any Specified Transactions, the following adjustments in connection
therewith shall be deemed to have occurred as of the first day of the
applicable period of measurement in such test or covenant:  (a) income statement items (whether
positive or negative) attributable to the property or Person subject to such
Specified Transaction, (i) in the case of an Asset Sale of all or substantially
all of the Equity Interests in any Subsidiary or of any division, product line,
or facility used for operations of the Borrower or any of its Subsidiaries,
shall be excluded, and (ii) in the case of a Permitted Acquisition or
investment described in the definition of “Specified Transaction”, shall be
included, (b) any retirement of Indebtedness, and (c) any
Indebtedness incurred or assumed by the Borrower or any of its Subsidiaries in
connection therewith and if such Indebtedness has a floating or formula rate,
shall have an implied rate of interest for the applicable period for purposes
of this definition determined by utilizing the rate which is or would be in
effect with respect to such Indebtedness as at the relevant date of
determination; provided, that the
foregoing pro forma adjustments may be applied to any such test or covenant
solely to the extent that such adjustments are consistent with the definition
of “Consolidated EBITDA” and may take into account reasonably identifiable and
factually supportable cost savings for which the necessary steps have been
implemented or are reasonably expected to be implemented within 18 months after
the closing of the relevant Specified Transaction.

 

“Project Subsidiary”
shall mean a Subsidiary of the Borrower formed solely for the purpose of
acquiring property relating to and the constructing and operating of one or
more ethanol plants (but not to exceed two, in the aggregate, for all Project
Subsidiaries) financed in whole or in part by Permitted Project Debt.

 

“Pro Rata Percentage”
of any Revolving Credit Lender at any time shall mean the percentage of the
Total Revolving Credit Commitment represented by such Lender’s Revolving Credit
Commitment. In the event the Revolving Credit Commitments shall have expired or
been terminated, the Pro Rata Percentages of any Revolving Credit 

 

25

 

Lender
shall be determined on the basis of the Revolving Credit Commitments most
recently in effect, giving effect to any subsequent assignments.

 

“Purchase Agreement”
shall mean the Membership Interest Purchase Agreement dated as of May 11,
2006, by and among the Seller, the Company, Merger Sub, THL Hawkeye Acquisition
Partners, THL Hawkeye Acquisition Partners II and THL Hawkeye Acquisition
Partners III.

 

“Qualified Capital Stock”
of any person shall mean any Equity Interest of such person that is not
Disqualified Stock.

 

“Qualified Public Offering”
shall mean the initial underwritten public offering of common Equity Interests
of either (a) Holdings or (b) Parent pursuant to an effective
registration statement filed with the Securities and Exchange Commission in
accordance with the Securities Act of 1933, as amended, that results in at
least $50,000,000 of Net Cash Proceeds to Holdings or Parent.

 

“Register” shall have
the meaning assigned to such term in Section 9.04(d).

 

“Regulation U” shall
mean Regulation U of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

 

“Regulation X”
shall mean Regulation X of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof.

 

“Related Fund” shall
mean, with respect to any Lender that is a fund or commingled investment
vehicle that invests in bank loans, any other fund that invests in bank loans
and is managed or advised by the same investment advisor as such Lender or by
an Affiliate of such investment advisor.

 

“Related Parties”
shall mean, with respect to any specified person, such person’s Affiliates and
the respective directors, officers, employees, agents and advisors of such
person and such person’s Affiliates.

 

“Release” shall mean
any release, spill, emission, leaking, dumping, injection, pouring, deposit,
disposal, discharge, dispersal, leaching or migration into or through the
environment or within or upon any building, structure, facility or fixture.

 

“Repayment Date” shall
have the meaning given such term in Section 2.11.

 

“Required Lenders”
shall mean, at any time, Lenders having Loans (excluding Swingline Loans), L/C
Exposure, Swingline Exposure and unused Revolving Credit Commitments and Term
Loan Commitments representing more than 50% of the sum of all Loans outstanding
(excluding Swingline Loans), L/C Exposure, Swingline Exposure and unused
Revolving Credit Commitments and Term Loan Commitments at such time; provided, that any Defaulting Lender shall
be excluded for purposes of making a determination of Required Lenders.

 

26

 

“Responsible Officer”
of any person shall mean any executive officer or Financial Officer of such
person and any other officer or similar official thereof responsible for the
administration of the obligations of such person in respect of this Agreement.

 

“Restricted Payment”
shall mean any dividend or other distribution (whether in cash, securities or
other property) with respect to any Equity Interests in Holdings, the Borrower
or any Subsidiary, or any payment (whether in cash, securities or other
property), including any sinking fund or similar deposit, on account of the
purchase, redemption, retirement, acquisition, cancelation or termination of
any Equity Interests in Holdings, the Borrower or any Subsidiary or any option,
warrant or other right to acquire any such Equity Interests in Holdings, the
Borrower or any Subsidiary.

 

“Revolving Commitment Increase”
has the meaning set forth in Section 2.24(a).

 

“Revolving Commitment Increase Lender”
has the meaning set forth in Section 2.24(b).

 

“Revolving Credit Borrowing”
shall mean a Borrowing comprised of Revolving Loans.

 

“Revolving Credit Commitment”
shall mean, with respect to each Lender, the commitment of such Lender to make
Revolving Loans (and acquire participations in Letters of Credit and Swingline
Loans) hereunder as set forth on Schedule 2.01, or in the Assignment and
Acceptance pursuant to which such Lender assumed its Revolving Credit
Commitment, as applicable, as the same may be (a) reduced from time to
time pursuant to Section 2.09 and (b) reduced or increased from time
to time pursuant to assignments by or to such Lender pursuant to
Section 9.04.

 

“Revolving Credit Exposure”
shall mean, with respect to any Lender at any time, the aggregate principal
amount at such time of all outstanding Revolving Loans of such Lender, plus the aggregate amount at such time of
such Lender’s L/C Exposure, plus
the aggregate amount at such time of such Lender’s Swingline Exposure.

 

“Revolving Credit Lender”
shall mean a Lender with a Revolving Credit Commitment or any Revolving Credit
Exposure.

 

“Revolving Credit Maturity Date”
shall mean June 30, 2011.

 

“Revolving Loans”
shall mean the revolving loans made by the Lenders to the Borrower pursuant to
paragraph (b) of Section 2.01.

 

“Second Lien Credit Agreement”
shall mean the Second Lien Credit Agreement dated as of June 30, 2006,
among the Borrower, Holdings, the lenders from time to time party thereto and
Credit Suisse, as administrative agent and collateral agent, as amended,
restated, supplemented or otherwise modified from time to time.

 

27

 

“Second Lien Guarantee and Collateral
Agreement” shall mean the Second Lien Guarantee and Collateral
Agreement, among the Borrower, Holdings, the Subsidiaries party thereto and the
Collateral Agent, dated the Closing Date.

 

“Second Priority Lien”
shall mean, with respect to any Collateral, the second priority Lien therein
created under the “Security Documents” (as defined in the Second Lien Credit
Agreement).

 

“Secured Parties”
shall have the meaning assigned to such term in the Guarantee and Collateral
Agreement.

 

“Security Documents”
shall mean the Mortgages, the Guarantee and Collateral Agreement, the
Intercreditor Agreement, the Intellectual Property Security Agreements and each
of the other instruments and documents executed and delivered pursuant to any
of the foregoing or pursuant to Section 5.09.

 

“Seller” shall have
the meaning assigned to such term in the recitals.

 

“Solvent” means, with
respect to any person, (a) the consolidated fair value of the assets of
such person and its Subsidiaries, at a fair valuation, will exceed their
consolidated debts and liabilities, subordinated, contingent or otherwise;
(b) the consolidated present fair saleable value of the property of such
person and its Subsidiaries will be greater than the amount that will be
required to pay the probable liability of their consolidated debts and other
liabilities, subordinated, contingent or otherwise, as such debts and other
liabilities become absolute and matured; (c) such person and its
Subsidiaries will be able to pay their consolidated debts and liabilities,
subordinated, contingent or otherwise, as such debts and liabilities become
absolute and matured; and (d) such person and its Subsidiaries, taken as a
whole, will not have unreasonably small capital with which to conduct the
business in which they are engaged.

 

“SPC” shall have the
meaning assigned to such term in Section 9.04(i).

 

“S&P” shall mean
Standard & Poor’s Ratings Group, Inc.

 

“Specified Tax Benefits”
shall mean tax benefits directly or indirectly attributable to (a) any
step-up in the tax basis of any assets of Holdings (or Parent, as applicable)
or its Subsidiaries attributable to (i) the consummation of the
Transactions; (ii) the consummation of a Qualified Public Offering
(including all transactions consummated in connection with such Qualified
Public Offering); (iii) the execution of that certain Indemnity Escrow
Agreement (the “Escrow
Agreement”) by and among Holdings, Hawkeye Holdings, L.L.C., THL
Hawkeye Acquisition Partners, THL Hawkeye Acquisition Partners II and THL
Hawkeye Acquisition Partners III, dated June 30, 2006; (iv) the
execution of that certain Tax Receivable Agreement (the “Tax Receivable Agreement”)
to be entered into by and among Parent (if any), Hawkeye Holdings, L.L.C.,
Thomas H. Lee Equity Fund VI, L.P., Thomas H. Lee Parallel Fund VI, L.P.,
Thomas H. Lee Parallel (DT) Fund VI, L.P., Putnam Investment Holdings, LLC,
Putnam Investments Employees Security Company III LLC, and THL Coinvestment
Partners, L.P.; (v) any payments made pursuant to either the Escrow
Agreement or the Tax 

 

28

 

Receivable
Agreement; and (b) any deductible interest paid by Holdings (or Parent, as
applicable) on account of either the Escrow Agreement or the Tax Receivable
Agreement.

 

“Specified Tax Payments”
shall mean Restricted Payments or other payments by Parent (if any), Holdings
or the Borrower to current or former Affiliates or members of Parent (if any),
Holdings (or directors, officers or employees of Parent (if any), Holdings, the
Borrower or any Subsidiary or any current or former Affiliate thereof) in
respect of any taxable year of Holdings computed as follows: (a) for so
long as Holdings is not a Corporate Taxpayer, an amount equal to the excess of
(x) the amount of U.S. federal, state and local income taxes that would
have been payable by Holdings and its Subsidiaries in respect of such taxable
year if Holdings were a Corporate Taxpayer (without taking into account the
Specified Tax Benefits) over (y) the amount of Tax Distributions made in
respect of such taxable year, and (b) in the event Holdings becomes a
Corporate Taxpayer, an amount equal to the excess of (i) the amount U.S.
federal, state and local income taxes that would have been payable by Holdings
and its Subsidiaries (without taking account the Specified Tax Benefits) over
(ii) the actual U.S. federal, state and local income taxes payable by
Holdings and its Subsidiaries in respect of such taxable year; provided, however,
that (x) the Specified Tax Payments made in any fiscal year of Holdings
shall not exceed $20,000,000 and (y) Specified Tax Payments shall not be
paid prior to the time such tax period ends and the amount determinable under
clauses (a) and (b) is ascertained; provided,
further, that for the avoidance of doubt, Specified Tax Payments
shall be made quarterly at or about the dates that estimated income tax
payments are required to be paid and at or about the time of the filing of the
annual income tax return (all as contemplated in the Tax Receivable Agreement).

 

“Specified Transaction”
means, with respect to any period, any Investment, Asset Sale, incurrence or
repayment of Indebtedness, Restricted Payment, Incremental Term Loan or
Revolving Commitment Increase that by the terms of this Agreement requires “Pro
Forma Compliance” with a test or covenant hereunder or requires such test or
covenant to be calculated on a “Pro Forma Basis”.

 

“Sponsor” shall mean
Thomas H. Lee Partners L.P. and its Affiliates.

 

“Sponsor Agreement”
shall mean the Management Agreement dated as of June 30, 2006, among
Holdings, the Borrower and THL Managers VI, LLC.

 

“Statutory Reserves”
shall mean a fraction (expressed as a decimal), the numerator of which is the
number one and the denominator of which is the number one minus the aggregate
of the maximum reserve percentages (including any marginal, special, emergency
or supplemental reserves) expressed as a decimal established by the Board and
any other banking authority, domestic or foreign, to which any Lender
(including any branch, Affiliate, or other fronting office making or holding a
Loan) is subject for Eurocurrency Liabilities (as defined in Regulation D
of the Board). Eurodollar Loans shall be deemed to constitute Eurocurrency
Liabilities as defined in Regulation D of the Board) and to be subject to
such reserve requirements without benefit of or credit for proration,
exemptions or offsets that may be available from time to time to 

 

29

 

any
Lender under such Regulation D. Statutory Reserves shall be adjusted
automatically on and as of the effective date of any change in any reserve
percentage.

 

“subsidiary” shall
mean, with respect to any person (herein referred to as the “parent”), any
corporation, partnership, limited liability company, association or other
business entity of which securities or other ownership interests representing
more than 50% of the ordinary voting power or more than 50% of the general
partnership interests are, at the time any determination is being made, owned,
Controlled or held by the parent, one or more subsidiaries of the parent or a
combination thereof.

 

“Subsidiary” shall
mean any subsidiary of Holdings or the Borrower; provided, that so long as D&W Railroad, LLC is not a
wholly owned Subsidiary of Holdings, it shall not be considered a Subsidiary
for the purposes of Article VII.

 

“Subsidiary Guarantor”
shall mean each Subsidiary listed on Schedule 1.01(a), and each other
Subsidiary that is or becomes a party to the Guarantee and Collateral
Agreement, excluding (a) D&W Railroad, LLC, so long as it is not a
wholly owned Subsidiary of Holdings, and (b) any Project Subsidiary.

 

“Swingline Commitment”
shall mean the commitment of the Swingline Lender to make loans pursuant to
Section 2.22, as the same may be reduced from time to time pursuant to
Section 2.09.

 

“Swingline Exposure”
shall mean, at any time, the aggregate principal amount at such time of all
outstanding Swingline Loans. The Swingline Exposure of any Revolving Credit
Lender at any time shall equal its Pro Rata Percentage of the aggregate
Swingline Exposure at such time.

 

“Swingline Lender”
shall mean Credit Suisse, acting through any of its Affiliates or branches, in
its capacity as lender of Swingline Loans hereunder.

 

“Swingline Loan” shall
mean any loan made by the Swingline Lender pursuant to Section 2.22.

 

“Synthetic Lease Obligations”
shall mean all monetary obligations of a person under (a) a so-called synthetic,
off-balance sheet or tax retention lease or (b) an agreement for the use
or possession of any property (whether real, personal or mixed) creating
obligations which do not appear on the balance sheet of such person, but which,
upon the insolvency or bankruptcy of such person, would be characterized as
Indebtedness of such person (without regard to accounting treatment).

 

“Tax Distributions”
shall mean, so long as Holdings is not a Corporate Taxpayer, Restricted
Payments by Holdings in respect of any taxable year in an aggregate amount not
exceeding the amount of United States Federal, state and local income taxes
(not otherwise paid by Holdings or any of its Subsidiaries) that would have
been paid by Holdings and its Subsidiaries in respect of such taxable year if
Holdings were a Corporate Taxpayer, taking into account all applicable
deductions and tax benefits (including tax benefits that are attributable to
Specified Tax Benefits); provided,
however, that such 

 

30

 

Restricted
Payments shall not be paid prior to the time such applicable tax period ends
and the amount of such Restricted Payments is ascertained; provided, further, that for the avoidance
of doubt, Tax Distributions shall be made quarterly, at or about the dates that
estimated income tax payments are required to be paid.

 

“Taxes” shall mean any
and all present or future taxes, levies, imposts, duties, deductions, charges,
liabilities or withholdings imposed by any Governmental Authority.

 

“Term Borrowing” shall
mean a Borrowing comprised of Term Loans.

 

“Term Lender” shall
mean a Lender with a Term Loan Commitment or an outstanding Term Loan.

 

“Term Loan Commitment”
shall mean, with respect to each Lender, the commitment of such Lender to make
Term Loans hereunder as set forth on Schedule 2.01, or in the Assignment
and Acceptance pursuant to which such Lender assumed its Term Loan Commitment,
as applicable, as the same may be (a) reduced from time to time pursuant
to Section 2.09 and (b) reduced or increased from time to time
pursuant to assignments by or to such Lender pursuant to Section 9.04.

 

“Term Loan Maturity Date”
shall mean June 30, 2012.

 

“Term Loans” shall
mean the term loans made by the Lenders to the Borrower pursuant to paragraph (a)
of Section 2.01.

 

“Total Debt” shall
mean, at any time with respect to any person and its Subsidiaries, the total
Indebtedness of such person in respect of borrowed money or Capital Lease
Obligations, determined on a consolidated basis, minus the amount of
unrestricted cash and Permitted Investments of such person that are not subject
to a Lien, other than any Lien in favor of the Secured Parties and the Second
Priority Lien.

 

“Total Leverage Ratio”
shall mean, with respect to Holdings and its Subsidiaries as of the end of any
fiscal quarter of Holdings, the ratio of Total Debt on such date to
Consolidated EBITDA for the period of four consecutive fiscal quarters most
recently ended on or prior to such date.

 

“Total Revolving Credit Commitment”
shall mean, at any time, the aggregate amount of the Revolving Credit
Commitments, as in effect at such time. The Total Revolving Credit Commitment
as of the Closing Date is $50,000,000.

 

“Transactions” shall
mean, collectively, (a) the execution, delivery and performance by the
parties thereto of the Purchase Agreement and the consummation of the
transactions contemplated thereby, including the Equity Contribution, the
Acquisition, the Merger and the repayment of the Existing Debt, (b) the
execution, delivery and performance by the Loan Parties of the Loan Documents
to which they are a party and the execution, delivery and performance by the
Loan Parties of the Second Lien Credit Agreement (and the “Loan Documents” as
defined therein) and the making of the 

 

31

 

Borrowings
hereunder and the borrowings thereunder and use of the proceeds thereof, and
(c) the payment of related fees and expenses.

 

“Type”, when used in
respect of any Loan or Borrowing, shall refer to the Rate by reference to which
interest on such Loan or on the Loans comprising such Borrowing is determined.
For purposes hereof, the term “Rate” shall mean the Adjusted LIBO Rate and the
Alternate Base Rate.

 

“Uniform Commercial Code”
or “UCC”
means the Uniform Commercial Code as in effect in any applicable jurisdiction
from time to time.

 

“USA PATRIOT Act”
shall mean The Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of
Pub. L. No. 107-56 (signed into law October 26, 2001)).

 

“Weighted Average Life to Maturity”
means, when applied to any Indebtedness at any date, the number of years
obtained by dividing:  (i) the sum
of the products obtained by multiplying (a) the amount of each then
remaining installment, sinking fund, serial maturity or other required payments
of principal, including payment at final maturity, in respect thereof, by
(b) the number of years (calculated to the nearest one-twelfth) that will
elapse between such date and the making of such payment; by (ii) the then
outstanding principal amount of such Indebtedness.

 

“wholly owned Subsidiary”
of any person shall mean a subsidiary of such person of which securities
(except for directors’ qualifying shares) or other ownership interests
representing 100% of the Equity Interests are, at the time any determination is
being made, owned, Controlled or held by such person or one or more wholly
owned Subsidiaries of such person or by such person and one or more wholly owned
Subsidiaries of such person.

 

“Withdrawal Liability”
shall mean liability to a Multiemployer Plan as a result of a complete or
partial withdrawal from such Multiemployer Plan, as such terms are defined in
Part I of Subtitle E of Title IV of ERISA.

 

SECTION 1.02. Terms Generally. The
definitions in Section 1.01 shall apply equally to both 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”; and the words “asset” and “property”
shall be construed as having the same meaning and effect and to refer to any
and all tangible and intangible assets and properties, including cash,
securities, accounts and contract rights. 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 of this Agreement unless the
context shall otherwise require. All references herein to Articles, Sections,
Exhibits and Schedules shall be deemed references to Articles and Sections of,
and Exhibits and Schedules to, this Agreement unless the context shall 

 

32

 

otherwise require. Except as otherwise expressly
provided herein, (a) any reference in this Agreement to any Loan Document or
any other agreement, instrument or document shall mean such document as
amended, restated, amended and restated, supplemented or otherwise modified
from time to time and (b) all terms of an accounting or financial nature shall
be construed in accordance with GAAP, as in effect from time to time; provided, however,
that if the Borrower notifies the Administrative Agent that the Borrower wishes
to amend any covenant in Article VI or any related definition to eliminate
the effect of any change in GAAP or the application thereof occurring after the
date of this Agreement on the operation of such covenant (or if the
Administrative Agent notifies the Borrower that the Required Lenders wish to
amend Article VI or any related definition for such purpose), then the
Borrower and the Administrative Agent shall negotiate in good faith to amend
such covenant and related definitions (subject to the approval of the Required
Lenders) to preserve the original intent thereof in light of such changes in
GAAP; provided, that the Borrower’s
compliance with such covenant shall be determined on the basis of GAAP as
applied and in effect immediately before the relevant change in GAAP or the
application thereof became effective, until such covenant is amended.

 

SECTION 1.03. Classification of Loans and
Borrowings. For
purposes of this Agreement, Loans may be classified and referred to by Class (e.g., a “Revolving Loan”) or by Type (e.g., a “Eurodollar Loan”) or by Class and
Type (e.g., a “Eurodollar
Revolving Loan”). Borrowings also may be classified and referred to by Class (e.g., a “Revolving Credit Borrowing”) or
by Type (e.g., a “Eurodollar
Borrowing”) or by Class and Type (e.g.,
a “Eurodollar Revolving Credit Borrowing”).

 

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

 

SECTION 1.05. References to Agreements and Laws.
Unless otherwise expressly provided herein, (a) references to
organization documents, agreements (including the Loan Documents) and other
contractual instruments shall be deemed to include all subsequent amendments,
amendments and restatements, restatements, supplements and other modifications
thereto, but only to the extent that such amendments, amendments and
restatements, restatements, supplements and other modifications are not
prohibited by any Loan Document; and (b) references to any law, statute, rule
or regulation shall include all statutory and regulatory provisions
consolidating, amending, replacing, supplementing or interpreting such Law.

 

SECTION 1.06. Times of Day. Unless
otherwise specified, all references herein to times of day shall be references
to Eastern time (daylight or standard, as applicable).

 

SECTION 1.07. Timing of Payment or Performance.
When the payment of any obligation or the performance of any covenant, duty
or obligation is stated to be due or 

 

33

 

performance required on a day which is not a Business
Day, the date of such payment or performance shall extend to the immediately
succeeding Business Day and such extension of time shall be reflected in
computing interest or fees, as the case may be; provided, that with respect to any payment of interest on or
principal of Eurodollar Rate Loans, if such extension would cause any such
payment to be made in the next succeeding calendar month, such payment shall be
made on the immediately preceding Business Day.

 

ARTICLE II

 

The Credits

 

SECTION 2.01. Commitments. Subject
to the terms and conditions herein set forth, each Lender agrees, severally and
not jointly, (a)  to make a Term Loan to
the Borrower on the Closing Date in a principal amount not to exceed its
Term Loan Commitment, and (b)  to make
Revolving Loans to the Borrower, at any time and from time to time on and
after the Closing Date, and until the earlier of the Revolving Credit Maturity
Date and the termination of the Revolving Credit Commitment of such Lender in
accordance with the terms hereof, in an aggregate principal amount at any time
outstanding that will not result in such Lender’s Revolving Credit
Exposure exceeding such Lender’s Revolving Credit Commitment; provided, however,
that the aggregate principal amount of Revolving Loans and Swingline Loans made
on the Closing Date shall not exceed $10,000,000. Within the limits set forth
in clause (b) of the preceding sentence and subject to the terms,
conditions and limitations set forth herein, the Borrower may borrow, pay or
prepay and reborrow Revolving Loans. Amounts paid or prepaid in respect of Term
Loans may not be reborrowed.

 

SECTION 2.02. Loans. (a)  Each Loan (other than Swingline Loans) shall
be made as part of a Borrowing consisting of Loans made by the Lenders ratably
in accordance with their applicable Commitments; provided, however, that the failure of any Lender to make
any Loan shall not in itself relieve any other Lender of its obligation to lend
hereunder (it being understood, however, that no Lender shall be responsible
for the failure of any other Lender to make any Loan required to be made by
such other Lender). Except for Loans deemed made pursuant to
Section 2.02(f) and subject to Section 2.22, the Loans comprising any
Borrowing shall be in an aggregate principal amount that is (i) an
integral multiple of $500,000 and not less than $2,000,000 or (ii) equal
to the remaining available balance of the applicable Commitments.

 

(b)   Subject to Sections 2.02(f), 2.08 and
2.15, each Borrowing shall be comprised entirely of ABR Loans or Eurodollar
Loans as the Borrower may request pursuant to Section 2.03. Each Lender
may at its option make any Eurodollar Loan by causing any domestic or foreign
branch or Affiliate of such Lender to make such Loan; provided, that any exercise of such option
shall not affect the obligation of the Borrower to repay such Loan in
accordance with the terms of this Agreement. Borrowings of more than one Type
may be outstanding at the same time; provided,
however, that the Borrower shall not be entitled to request any
Borrowing that, if made, would result in more than twelve Eurodollar
Borrowings outstanding hereunder at any time. For 

 

34

 

purposes of the foregoing, Borrowings having different
Interest Periods, regardless of whether they commence on the same date, shall
be considered separate Borrowings.

 

(c)   Except with respect to Loans deemed made
pursuant to Section 2.02(f) and subject to Section 2.22, each Lender
shall make each Loan to be made by it hereunder on the proposed date thereof by
wire transfer of immediately available funds to such account in New York City
as the Administrative Agent may designate not later than 1:00 p.m., New
York City time, and the Administrative Agent shall promptly credit the amounts
so received to an account designated by the Borrower in the applicable
Borrowing Request or, if a Borrowing shall not occur on such date because any
condition precedent herein specified shall not have been met, return the
amounts so received to the respective Lenders.

 

(d)   Unless the Administrative Agent shall have
received notice from a Lender prior to the date of any Borrowing that such
Lender will not make available to the Administrative Agent such Lender’s
portion of such Borrowing, the Administrative Agent may assume that such Lender
has made such portion available to the Administrative Agent on the date of such
Borrowing in accordance with paragraph (c) above and the Administrative
Agent may, in reliance upon such assumption, make available to the Borrower on
such date a corresponding amount. If the Administrative Agent shall have so
made funds available then, to the extent that such Lender shall not have made
such portion available to the Administrative Agent, such Lender and the
Borrower severally agree to repay to the Administrative Agent forthwith on
demand such corresponding amount together with interest thereon, for each day
from the date such amount is made available to the Borrower to but excluding
the date such amount is repaid to the Administrative Agent at (i) in the
case of the Borrower, a rate per annum equal to the interest rate applicable at
the time to the Loans comprising such Borrowing and (ii) in the case of
such Lender, a rate determined by the Administrative Agent to represent its
cost of overnight or short-term funds (which determination shall be conclusive
absent manifest error). If such Lender shall repay to the Administrative Agent
such corresponding amount, such amount shall constitute such Lender’s Loan as
part of such Borrowing for purposes of this Agreement and (x) Borrower’s
obligation to repay the Administrative Agent such corresponding amount pursuant
to this Section 2.02(d) shall cease and (y) if the Borrower pays such
amount to the Administrative Agent, the amount so paid shall constitute a
repayment of such Borrowing by such amount.

 

(e)   Notwithstanding any other provision of this
Agreement, the Borrower shall not be entitled to request any Eurodollar
Revolving Credit Borrowing if the Interest Period requested with respect
thereto would end after the Revolving Credit Maturity Date.

 

(f)   If the Issuing Bank shall not have received
from the Borrower the payment required to be made by Section 2.23(e)
within the time specified in such Section, the Issuing Bank will promptly
notify the Administrative Agent of the L/C Disbursement and the Administrative
Agent will promptly notify each Revolving Credit Lender of such L/C
Disbursement and its Pro Rata Percentage thereof. Each Revolving Credit Lender
shall pay by wire transfer of immediately available funds to the Administrative
Agent not later

 

35

 

than 2:00 p.m., New York City time, on such date (or,
if such Revolving Credit Lender shall have received such notice later than
12:00 (noon), New York City time, on any day, not later than 10:00 a.m., New
York City time, on the immediately following Business Day), an amount equal to
such Lender’s Pro Rata Percentage of such L/C Disbursement (it being understood
that such amount shall be deemed to constitute an ABR Revolving Loan of such
Lender and such payment shall be deemed to have reduced the L/C Exposure), and
the Administrative Agent will promptly pay to the Issuing Bank amounts so
received by it from the Revolving Credit Lenders. The Administrative Agent will
promptly pay to the Issuing Bank any amounts received by it from the Borrower
pursuant to Section 2.23(e) prior to the time that any Revolving Credit
Lender makes any payment pursuant to this paragraph (f); any such amounts
received by the Administrative Agent thereafter will be promptly remitted by
the Administrative Agent to the Revolving Credit Lenders that shall have made
such payments and to the Issuing Bank, as their interests may appear. If any
Revolving Credit Lender shall not have made its Pro Rata Percentage of such L/C
Disbursement available to the Administrative Agent as provided above, such
Lender and the Borrower severally agree to pay interest on such amount, for
each day from and including the date such amount is required to be paid in
accordance with this paragraph to but excluding the date such amount is paid,
to the Administrative Agent for the account of the Issuing Bank at (i) in the
case of the Borrower, a rate per annum equal to the interest rate applicable to
Revolving Loans pursuant to Section 2.06(a), and (ii) in the case of such
Lender, for the first such day, the Federal Funds Effective Rate, and for each
day thereafter, the Alternate Base Rate.

 

SECTION 2.03. Borrowing Procedure.
In order to request a Borrowing (other than a Swingline Loan or a deemed
Borrowing pursuant to Section 2.02(f), as to which this Section 2.03
shall not apply), the Borrower shall notify the Administrative Agent of such
request by telephone (a) in the case of a Eurodollar Borrowing, not later
than 1:00 p.m., New York City time, three Business Days before a
proposed Borrowing, and (b) in the case of an ABR Borrowing, not later than
1:00 p.m., New York City time, one Business Day before a proposed
Borrowing. Each such telephonic Borrowing Request shall be irrevocable, and
shall be confirmed promptly by hand delivery or fax to the Administrative Agent
of a written Borrowing Request and shall specify the following information:
(i) whether the Borrowing then being requested is to be a Term Borrowing
or a Revolving Credit Borrowing, and whether such Borrowing is to be a
Eurodollar Borrowing or an ABR Borrowing; (ii) the date of such Borrowing
(which shall be a Business Day); (iii) the number and location of the
account to which funds are to be disbursed; (iv) the amount of such
Borrowing; and (v) if such Borrowing is to be a Eurodollar Borrowing, the
Interest Period with respect thereto; provided,
however, that notwithstanding any
contrary specification in any Borrowing Request, each requested Borrowing shall
comply with the requirements set forth in Section 2.02. If no election as
to the Type of Borrowing is specified in any such notice, then the requested Borrowing
shall be a Eurodollar Borrowing. If no Interest Period with respect to any
Eurodollar Borrowing is specified in any such notice, then the Borrower shall
be deemed to have selected an Interest Period of one month’s duration. The
Administrative Agent shall promptly advise the applicable Lenders of any notice
given pursuant to this Section 2.03 (and the contents thereof), and of
each Lender’s portion of the requested Borrowing.

 

36

 

SECTION 2.04. Evidence of Debt; Repayment of
Loans. (a)  The Borrower
hereby unconditionally promises to pay to the Administrative Agent for the
account of each Lender (i) the principal amount of each Term Loan of such
Lender as provided in Section 2.11 and (ii) the then unpaid principal
amount of each Revolving Loan of such Lender on the Revolving Credit Maturity
Date. The Borrower hereby promises to pay to the Swingline Lender the then
unpaid principal amount of each Swingline Loan on the Revolving Credit Maturity
Date.

 

(b)   Each Lender shall maintain in accordance
with its usual practice an account or accounts evidencing the indebtedness of
the Borrower to such Lender resulting from each Loan made by such Lender from
time to time, including the amounts of principal and interest payable and paid
to such Lender from time to time under this Agreement.

 

(c)   The Administrative Agent shall maintain
accounts in which it will record (i) the amount of each Loan made
hereunder, the Class and Type thereof and, if applicable, the Interest Period
applicable thereto, (ii) the amount of any principal or interest due and
payable or to become due and payable from the Borrower to each Lender hereunder
and (iii) the amount of any sum received by the Administrative Agent hereunder
from the Borrower or any Guarantor and each Lender’s share thereof.

 

(d)   The entries made in the accounts maintained
pursuant to paragraphs (b) and (c) above shall be prima facie evidence of the existence and
amounts of the obligations therein recorded; provided,
however, that the failure of any
Lender or the Administrative Agent to maintain such accounts or any error
therein shall not in any manner affect the obligations of the Borrower to repay
the Loans in accordance with the terms of this Agreement.

 

(e)   Any Lender may request that Loans made by it
hereunder be evidenced by a promissory note. In such event, the Borrower shall
execute and deliver to such Lender a promissory note payable to such Lender and
its permitted registered assigns in form and substance reasonably acceptable to
the Administrative Agent. Notwithstanding any other provision of this
Agreement, in the event any Lender shall request and receive such a promissory
note, the interests represented by such note shall at all times (including
after any assignment of all or part of such interests pursuant to
Section 9.04) be represented by one or more promissory notes payable to
the payee named therein or its registered assigns.

 

SECTION 2.05. Fees. (a)  The Borrower agrees to pay to each Revolving
Credit Lender, through the Administrative Agent, on the last day of March,
June, September and December, commencing with September 30, 2006, in each
year and on each date on which the Revolving Credit Commitment of such Lender
shall expire or be terminated as provided herein, a commitment fee (a “Commitment Fee”)
equal to the Applicable Percentage per annum on the daily unused amount of the
Revolving Credit Commitment of such Lender during the preceding quarter (or
other period commencing with the Closing Date or ending with the Revolving
Credit Maturity Date or the date on which the Revolving Credit Commitment of
such Lender shall expire or be terminated). All Commitment Fees shall be
computed on the basis of the actual number of days elapsed in 

 

37

 

a year of 360 days. For purposes of calculating
Commitment Fees only, no portion of the Revolving Credit Commitments shall be
deemed utilized as a result of outstanding Swingline Loans.

 

(b)   The Borrower agrees to pay to the
Administrative Agent, for its own account, the administrative fees set forth in
the Fee Letter at the times and in the amounts specified therein (the “Administration Fees”).

 

(c)   The Borrower agrees to pay (i) to each
Revolving Credit Lender, through the Administrative Agent, on the last day of
March, June, September and December of each year commencing with
September 30, 2006, and on the date on which the Revolving Credit
Commitment of such Lender shall be terminated as provided herein (each an “L/C Fee Payment Date”),
a fee (an “L/C
Participation Fee”) calculated on such Lender’s Pro Rata
Percentage of the daily aggregate L/C Exposure (excluding the portion thereof
attributable to unreimbursed L/C Disbursements) during the preceding quarter
(or shorter period commencing with the date hereof or ending with the Revolving
Credit Maturity Date or the date on which all Letters of Credit have been
canceled or have expired and the Revolving Credit Commitments of all Lenders shall
have been terminated) at a rate per annum equal to the Applicable Percentage
from time to time used to determine the interest rate on Revolving Credit
Borrowings comprised of Eurodollar Loans pursuant to Section 2.06, and
(ii) to the Issuing Bank (A) with respect to each outstanding Letter
of Credit a fronting fee that shall accrue at a rate of 0.125% per annum (or
such lesser rate as shall be separately agreed upon between the Borrower and
the Issuing Bank) on the undrawn amount of such Letter of Credit, payable
quarterly in arrears on the last day of March, June, September and December in
each year commencing with September 30, 2006, and upon expiration of the
applicable Letter of Credit and (B) the Issuing Bank’s standard fees with
respect to the issuance, amendment, renewal or extension of any Letter of
Credit issued by such Issuing Bank or processing of drawings thereunder (the
fees in this clause (ii) being collectively the “Issuing Bank Fees”).
All L/C Participation Fees and Issuing Bank Fees shall be computed on the basis
of the actual number of days elapsed in a year of 360 days.

 

(d)   All Fees shall be paid, in immediately
available funds, to the Administrative Agent for distribution, if and as
appropriate, among the Lenders except that the Issuing Bank Fees shall be paid
directly to the Issuing Bank. Once paid, none of the Fees shall be refundable
under any circumstances.

 

SECTION 2.06. Interest on Loans.
(a)  Subject to the provisions of
Section 2.07, the Loans comprising each ABR Borrowing, including each
Swingline Loan, shall bear interest (computed on the basis of the actual number
of days elapsed over a year of 365 or 366 days, as the case may be, when
the Alternate Base Rate is determined by reference to the Prime Rate and over a
year of 360 days at all other times and calculated from and including the
date of such Borrowing to but excluding the date of repayment thereof) at a
rate per annum equal to the Alternate Base Rate plus the Applicable Percentage
in effect from time to time.

 

38

 

(b)   Subject to the provisions of
Section 2.07, the Loans comprising each Eurodollar Borrowing shall bear
interest (computed on the basis of the actual number of days elapsed over a
year of 360 days) at a rate per annum equal to the Adjusted LIBO Rate for
the Interest Period in effect for such Borrowing plus the Applicable Percentage
in effect from time to time.

 

(c)   Interest on each Loan shall be payable on
the Interest Payment Dates applicable to such Loan except as otherwise provided
in this Agreement. The applicable Alternate Base Rate or Adjusted LIBO Rate for
each Interest Period or day within an Interest Period, as the case may be,
shall be determined by the Administrative Agent, and such determination shall
be conclusive absent manifest error.

 

SECTION 2.07. Default Interest. If
the Borrower shall default in the payment when due of any principal of or
interest on any Loan or reimbursement of any L/C Disbursement or payment of any
fee or other amount due hereunder, by acceleration or otherwise, or under any
other Loan Document, then, until such defaulted amount shall have been paid in
full, to the extent permitted by law, such overdue amount shall bear interest
(after as well as before judgment), payable on demand, (a) in the case of
principal of a Loan, at the rate otherwise applicable to such Loan pursuant to
Section 2.06 plus 2.00% per annum and (b) in all other cases, at a rate per
annum (computed on the basis of the actual number of days elapsed over a year
of 365 or 366 days, as the case may be, when determined by reference to the
Prime Rate and over a year of 360 days at all other times) equal to the rate
that would be applicable to an ABR Revolving Loan plus 2.00% per annum.

 

SECTION 2.08. Alternate Rate of Interest.
In the event, and on each occasion, that on the day two Business Days prior to
the commencement of any Interest Period for a Eurodollar Borrowing the
Administrative Agent shall have reasonably determined that dollar deposits in
the principal amounts of the Loans comprising such Borrowing are not generally
available in the London interbank market, or that the rates at which dollar
deposits are being offered in the London interbank market will not adequately
and fairly reflect the cost to any participating Lender of making or
maintaining its Eurodollar Loan during such Interest Period, or that reasonable
means do not exist for ascertaining the Adjusted LIBO Rate for such Interest
Period, the Administrative Agent shall, as soon as practicable thereafter, give
written or fax notice of such determination to the Borrower and the Lenders. In
the event of any such determination, until the Administrative Agent shall have
advised the Borrower and the participating Lenders that the circumstances
giving rise to such notice no longer exist (which the Administrative Agent
agrees to give promptly after such circumstances no longer exist), any request
by the Borrower for a Eurodollar Borrowing pursuant to Section 2.03 or
2.10 shall be deemed to be a request for an ABR Borrowing. Each
determination by the Administrative Agent under this Section 2.08 shall be
conclusive absent manifest error.

 

SECTION 2.09. Termination and Reduction of
Commitments. (a)  The Term
Loan Commitments shall automatically terminate upon the making of the Term
Loans on the Closing Date. The Revolving Credit Commitments and the Swingline
Commitment shall automatically terminate on the Revolving Credit Maturity Date.
The L/C

 

39

 

Commitment shall automatically terminate on the
earlier to occur of (i) the termination of the Revolving Credit
Commitments and (ii) the date 10 days prior to the Revolving Credit
Maturity Date, unless otherwise agreed by the Issuing Bank and the Borrower.
Notwithstanding the foregoing, all the Commitments shall automatically
terminate at 5:00 p.m., New York City time, on June 30, 2006, if the
initial Credit Event shall not have occurred by such time.

 

(b)   Upon at least three Business Days’ prior
written or fax notice to the Administrative Agent, the Borrower may at any time
in whole permanently terminate, or from time to time in part permanently
reduce, the Term Loan Commitments, the Revolving Credit Commitments or the
Swingline Commitment; provided, however, that (i) each partial
reduction of the Term Loan Commitments or the Revolving Credit Commitments
shall be in an integral multiple of $1,000,000 and in a minimum amount of
$5,000,000 (and $1,000,000 in the case of the Swingline Commitment) and
(ii) the Total Revolving Credit Commitment shall not be reduced to an
amount that is less than the Aggregate Revolving Credit Exposure then in effect
(after giving effect to any repayment or prepayment effected simultaneously
therewith). Any notice given by the Borrower pursuant to this Section 2.09(b)
shall be irrevocable; provided,
that any such notice delivered by the Borrower may state that such notice is
conditioned upon the effectiveness of other financing arrangements, in which
case such notice may be revoked by the Borrower (by notice to the
Administrative Agent on or prior to the specified effective date) if such
condition is not satisfied.

 

(c)   Each reduction in the Term Loan Commitments
or the Revolving Credit Commitments hereunder shall be made ratably among the
Lenders in accordance with their respective applicable Commitments; provided, that the Swingline Commitment
shall not be reduced unless the Revolving Commitment is reduced to an amount
less than the Swingline Commitment then in effect (and then only to the extent
of such deficit). The Borrower shall pay to the Administrative Agent for the
account of the Revolving Credit Lenders, on the date of each termination or
reduction of the Revolving Credit Commitments, the Commitment Fees on the
amount of the Revolving Credit Commitments so terminated or reduced accrued to
but excluding the date of such termination or reduction.

 

SECTION 2.10. Conversion and Continuation of
Borrowings. The Borrower shall have the right at any time upon
prior written or fax notice (or telephone notice promptly confirmed by written
or fax notice) to the Administrative Agent (a) not later than
1:00 p.m., New York City time, one Business Day prior to conversion, to
convert any Eurodollar Borrowing into an ABR Borrowing, (b) not later than
11:00 a.m., New York City time, three Business Days prior to conversion or
continuation, to convert any ABR Borrowing into a Eurodollar Borrowing or to
continue any Eurodollar Borrowing as a Eurodollar Borrowing for an additional
Interest Period, and (c) not later than 1:00 p.m., New York City
time, three Business Days prior to conversion, to convert the Interest Period
with respect to any Eurodollar Borrowing to another permissible Interest
Period, subject in each case to the following:

 

40

 

(i)  each conversion or continuation shall be made
pro rata among the Lenders in accordance with the respective principal amounts
of the Loans comprising the converted or continued Borrowing;

 

(ii)  if less than all the outstanding principal
amount of any Borrowing shall be converted or continued, then each resulting
Borrowing shall satisfy the limitations specified in Sections 2.02(a) and
2.02(b) regarding the principal amount and maximum number of Borrowings of the
relevant Type;

 

(iii)  each conversion shall be effected by each
Lender and the Administrative Agent by recording for the account of such Lender
the Type of such Loan of such Lender resulting from such conversion and
reducing the Loan (or portion thereof) of such Lender being converted by an
equivalent principal amount; accrued interest on any Eurodollar Loan (or
portion thereof) being converted shall be paid by the Borrower at the time of
conversion;

 

(iv)  if any Eurodollar Borrowing is converted at a
time other than the end of the Interest Period applicable thereto, the Borrower
shall pay, upon demand, any amounts due to the Lenders pursuant to
Section 2.16;

 

(v)  any portion of a Borrowing maturing or
required to be repaid in less than one month may not be converted into or
continued as a Eurodollar Borrowing;

 

(vi)  any portion of a Eurodollar Borrowing that
cannot be converted into or continued as a Eurodollar Borrowing by reason of
the immediately preceding clause shall be automatically converted at the end of
the Interest Period in effect for such Borrowing into an ABR Borrowing;
and

 

(vii)  upon notice to the Borrower from the
Administrative Agent given at the request of the Required Lenders, after the
occurrence and during the continuance of an Event of Default, no outstanding
Loan may be converted into, or continued as, a Eurodollar Loan.

 

Each
notice pursuant to this Section 2.10 shall be irrevocable and shall refer
to this Agreement and specify (i) the identity and amount of the Borrowing
that the Borrower requests be converted or continued, (ii) whether such
Borrowing is to be converted to or continued as a Eurodollar Borrowing or an
ABR Borrowing, (iii) if such notice requests a conversion, the date
of such conversion (which shall be a Business Day) and (iv) if such
Borrowing is to be converted to or continued as a Eurodollar Borrowing, the
Interest Period with respect thereto. If no Interest Period is specified in any
such notice with respect to any conversion to or continuation as a Eurodollar
Borrowing, the Borrower shall be deemed to have selected an Interest Period of
one month’s duration. The Administrative Agent shall advise the Lenders of any
notice given pursuant to this Section 2.10 and of each Lender’s portion of
any converted or continued Borrowing. If the Borrower shall not have given
notice in accordance with this Section 2.10 to continue any Borrowing into
a subsequent Interest Period (and shall not otherwise have given 

 

41

 

notice
in accordance with this Section 2.10 to convert such Borrowing), such
Borrowing shall, at the end of the Interest Period applicable thereto (unless
repaid pursuant to the terms hereof), automatically be continued into a
Eurodollar Borrowing with an Interest Period of one month’s duration. This
Section shall not apply to Swingline Loans.

 

SECTION 2.11. Repayment of Term Borrowings.
(a)  The Borrower shall pay to the
Administrative Agent, for the account of the Term Lenders, on March 31,
June 30, September 30 and December 31 in each year (commencing
on September 30, 2006) and on the Term Loan Maturity Date (each such date
being called a “Repayment
Date”), a principal amount of the Term Loans (as adjusted from
time to time pursuant to Sections 2.11(b), 2.12 and 2.13(f)) equal to
$1,250,000 on each Repayment Date prior to the Term Loan Maturity Date and
$471,250,000 on the Term Loan Maturity Date, together in each case with accrued
and unpaid interest on the principal amount to be paid to but excluding the
date of such payment.

 

(b)   In the event and on each occasion that the
Term Loan Commitments shall be reduced or shall expire or terminate other than
as a result of the making of a Term Loan, the installments payable on each
Repayment Date shall be reduced pro rata by an aggregate amount equal to the
amount of such reduction, expiration or termination.

 

(c)   To the extent not previously paid, all Term
Loans shall be due and payable on the Term Loan Maturity Date, together with
accrued and unpaid interest on the principal amount to be paid to but excluding
the date of payment.

 

(d)   All repayments pursuant to this
Section 2.11 shall be subject to Section 2.16, but shall otherwise be
without premium or penalty.

 

SECTION 2.12. Optional Prepayment.
(a)  The Borrower shall have the right at
any time and from time to time to prepay any Borrowing, in whole or in part,
upon at least three Business Days’ prior written or fax notice (or telephone
notice promptly confirmed by written or fax notice) in the case of Eurodollar
Loans, or written or fax notice (or telephone notice promptly confirmed by
written or fax notice) at least one Business Day prior to the date of
prepayment in the case of ABR Loans, to the Administrative Agent before
1:00 p.m., New York City time; provided,
however, that each partial prepayment shall be in an amount that is
an integral multiple of $1,000,000 and not less than $5,000,000.

 

(b)   Optional prepayments of Term Loans shall be
applied against the remaining scheduled installments of principal due in
respect of the Term Loans under Section 2.11 in the manner specified by
the Borrower or, if not so specified on or prior to the date of such optional
prepayment, in direct order of maturity.

 

(c)   Each notice of prepayment shall specify the
prepayment date and the principal amount of each Borrowing (or portion thereof)
to be prepaid, shall be irrevocable and shall commit the Borrower to prepay
such Borrowing by the amount stated therein on the date stated therein; provided, that if a notice of optional
prepayment is given in connection with a conditional notice of termination of
the Commitments as 

 

42

 

contemplated by Section 2.09, then such notice of
prepayment may be revoked if such notice of termination is revoked in
accordance with Section 2.09. All prepayments under this Section 2.12
shall be subject to Section 2.16 but otherwise without premium or penalty.
All Eurodollar Loan prepayments under this Section 2.12 shall be
accompanied by accrued and unpaid interest on the principal amount to be
prepaid to but excluding the date of payment.

 

SECTION 2.13. Mandatory Prepayments.
(a)  In the event of any termination of
all the Revolving Credit Commitments, the Borrower shall, on the date of such
termination, repay or prepay all outstanding Revolving Credit Borrowings and
all outstanding Swingline Loans and replace or cause to be canceled (or provide
L/C Backstop or make other arrangements reasonably satisfactory to the
Administrative Agent and the Issuing Bank with respect to) all outstanding
Letters of Credit. If, after giving effect to any partial reduction of the
Revolving Credit Commitments, the Aggregate Revolving Credit Exposure would
exceed the Total Revolving Credit Commitment, then the Borrower shall, on the date
of such reduction, repay or prepay Revolving Credit Borrowings or Swingline
Loans (or a combination thereof) and, after the Revolving Credit Borrowings and
Swingline Loans shall have been repaid or prepaid in full, replace or cause to
be canceled (or provide L/C Backstop or make other arrangements reasonably
satisfactory to the Administrative Agent and the Issuing Bank with respect to)
Letters of Credit in an amount sufficient to eliminate such excess.

 

(b)   Not later than the fifth Business Day
following the receipt by Holdings or any of its Subsidiaries of Net Cash
Proceeds in respect of any Prepayment Asset Sale, the Borrower shall apply an
amount equal to 100% of the Net Cash Proceeds received by Holdings or any of
its Subsidiaries with respect thereto (subject to the restrictions set forth
herein) to prepay outstanding Loans in accordance with Section 2.13(f); provided, however,
that if (i) prior to the date any such prepayment is required to be made,
the Borrower notifies the Administrative Agent of its intent to reinvest such
Net Cash Proceeds in assets of a kind then used or usable in the business of
the Borrower and the Subsidiaries and (ii) no Event of Default shall have
occurred and shall be continuing at the time of such notice, then the Borrower
shall not be required to prepay Loans hereunder in respect of such Net Cash
Proceeds to the extent that such Net Cash Proceeds are so reinvested within one
year after the date of receipt of such Net Cash Proceeds (or, within such
one-year period, the Borrower or any of its Subsidiaries enters into a binding
commitment to so reinvest in such Net Cash Proceeds, and such Net Cash Proceeds
are so reinvested within 180 days after such binding commitment is so entered
into).

 

(c)   No later than the earlier of (i) 125
days after the end of each fiscal year of the Borrower, commencing with the
fiscal year ending on December 31, 2007, and (ii) the fifth Business
Day following the date on which the financial statements with respect to such
fiscal year are delivered pursuant to Section 5.04(a), the Borrower shall
prepay outstanding Loans in accordance with Section 2.13(f) in an
aggregate principal amount equal to the excess, if any, of (i) the
applicable ECF Percentage of Excess Cash Flow for the fiscal year then ended
over (ii) the aggregate principal amount of Term Loans and the Revolving
Loans (to the extent accompanied by a permanent reduction of the Revolving
Credit Commitments) prepaid pursuant to Section 2.12 during such fiscal
year.

 

43

 

(d)   In the event that Holdings or any of its
Subsidiaries shall receive Net Cash Proceeds from the issuance or incurrence of
Indebtedness (other than any cash proceeds from the issuance or incurrence of
Indebtedness permitted pursuant to Section 6.01), the Borrower shall,
substantially simultaneously with (and in any event not later than the fifth
Business Day next following) the receipt of such Net Cash Proceeds, apply an
amount equal to 100% of such Net Cash Proceeds to prepay outstanding Loans in
accordance with Section 2.13(f).

 

(e)   Substantially simultaneously with (and in
any event no later than the fifth Business Day following) the receipt by Parent
or Holdings of Net Cash Proceeds from a Qualified Public Offering, the Borrower
shall prepay outstanding Loans in accordance with Section 2.13(f) in an
aggregate principal amount equal to $50,000,000; provided, that if Holdings or Parent complete an offering of
Equity Interests that would be a Qualified Public Offering but for the fact
that the Net Cash Proceeds therefrom are less than $50,000,000, then
(i) the Borrower shall prepay Loans in an aggregate principal amount equal
to 100% of such Net Cash Proceeds and (ii) the Borrower shall prepay Loans
from any subsequent public offerings of such Equity Interests (beginning with
the next succeeding public offering) in an aggregate principal amount equal to
the excess of (x) $50,000,000 over (y) the Net Cash Proceeds of the
amount prepaid pursuant to clause (i).

 

(f)   So long as any Term Loans are outstanding,
mandatory prepayments of outstanding Loans under this Agreement shall be
allocated ratably among the Term Lenders that accept the same and applied
against the remaining scheduled installments of principal due in respect of the
Term Loans of such Lenders under Section 2.11 in the direct order of
maturity. Any Term Lender may elect, by notice to the Administrative Agent at
or prior to the time and in the manner specified by the Administrative Agent,
prior to any prepayment of Term Loans required to be made by the Borrower
pursuant to this Section (other than pursuant to Section 2.13(e)), to
decline all (but not a portion) of its pro rata share of such prepayment (such
declined amounts, the “Declined
Proceeds”). Any Declined Proceeds shall be offered to the Term
Lenders not so declining such prepayment (with such Term Lenders having the
right to decline any prepayment with Declined Proceeds at the time and in the
manner specified by the Administrative Agent). Any remaining Declined Proceeds
(and, after the repayment in full of all outstanding Term Loans, any other
amounts referred to in paragraph (b), (c) or (d) above that are required
to be used to prepay Loans hereunder) shall be used, first, to prepay Revolving
Loans and Swingline Loans (without any corresponding permanent reduction in the
Revolving Credit Commitments) and, second, as may be required pursuant to the
mandatory prepayment provisions of the Second Lien Credit Agreement.

 

(g)   The Borrower shall deliver to the Administrative
Agent, at or prior to the time of each prepayment required under this
Section 2.13, (i) a certificate signed by a Financial Officer of the
Borrower setting forth in reasonable detail the calculation of the amount of
such prepayment and (ii) to the extent practicable, at least three
Business Days prior written notice of such prepayment. Each notice of
prepayment shall specify the prepayment date, the Type of each Loan being
prepaid and the principal amount of each Loan (or portion thereof) to be prepaid; provided, however, that if at the time of any 

 

44

 

prepayment pursuant to this Section 2.13 there
shall be outstanding Term Borrowings of different Types or Eurodollar Term
Borrowings with different Interest Periods, and if some but not all Term
Lenders shall have accepted such mandatory prepayment, then the aggregate
amount of such mandatory prepayment shall be allocated ratably to each
outstanding Term Borrowing of the accepting Term Lenders. All prepayments of
Borrowings under this Section 2.13 shall be subject to Section 2.16,
but shall otherwise be without premium or penalty.

 

SECTION 2.14. Reserve Requirements; Change in
Circumstances. (a) 
Notwithstanding any other provision of this Agreement, if any Change in
Law shall impose, modify or deem applicable any reserve, special deposit or
similar requirement against assets of, deposits with or for the account of or
credit extended by any Lender or the Issuing Bank (except any such reserve
requirement which is reflected in the Adjusted LIBO Rate) or shall impose on
such Lender or the Issuing Bank or the London interbank market any other
condition affecting this Agreement or Eurodollar Loans made by such Lender or
any Letter of Credit or participation therein, and the result of any of the
foregoing shall be to increase the cost to such Lender or the Issuing Bank of
making or maintaining any Eurodollar Loan or increase the cost to any Lender of
issuing or maintaining any Letter of Credit or purchasing or maintaining a
participation therein or to reduce the amount of any sum received or receivable
by such Lender or the Issuing Bank hereunder (whether of principal, interest or
otherwise) by an amount deemed by such Lender or the Issuing Bank to be
material, then the Borrower will pay to such Lender or the Issuing Bank, as the
case may be, upon demand such additional amount or amounts as will compensate
such Lender or the Issuing Bank, as the case may be, for such additional costs
incurred or reduction suffered.

 

(b)   If any Lender or the Issuing Bank shall have
determined that any Change in Law regarding capital adequacy has or would have
the effect of reducing the rate of return on such Lender’s or the Issuing Bank’s
capital or on the capital of such Lender’s or the Issuing Bank’s holding
company, if any, as a consequence of this Agreement or the Loans made or
participations in Loans purchased by such Lender pursuant hereto or the Letters
of Credit issued by the Issuing Bank pursuant hereto to a level below that
which such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s
holding company could have achieved but for such Change in Law (taking into
consideration such Lender’s or the Issuing Bank’s policies and the policies of
such Lender’s or the Issuing Bank’s holding company with respect to capital
adequacy) by an amount deemed by such Lender or the Issuing Bank to be
material, then from time to time the Borrower shall pay to such Lender or the
Issuing Bank, as the case may be, such additional amount or amounts as will
compensate such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s
holding company for any such reduction suffered.

 

(c)   A certificate of a Lender or the Issuing
Bank setting forth the amount or amounts necessary to compensate such Lender or
the Issuing Bank or its holding company, as applicable, as specified in
paragraph (a) or (b) above shall be delivered to the Borrower, shall
describe the applicable Change in Law, the resulting costs incurred or
reduction suffered (including a calculation thereof), certifying that such
Lender is generally charging such amounts to similarly situated borrowers and
shall be conclusive 

 

45

 

absent manifest error. The Borrower shall pay such
Lender or the Issuing Bank, as applicable, the amount shown as due on any such
certificate delivered by it within 30 days after its receipt of the same.

 

(d)   Failure or delay on the part of any Lender
or the Issuing Bank to demand compensation for any increased costs or reduction
in amounts received or receivable or reduction in return on capital shall not
constitute a waiver of such Lender’s or the Issuing Bank’s right to demand such
compensation; provided, that the
Borrower shall not be under any obligation to compensate any Lender or the
Issuing Bank under paragraph (a) or (b) above with respect to increased
costs or reductions with respect to any period prior to the date that is
120 days prior to such request; provided,
further, that the foregoing limitation
shall not apply to any increased costs or reductions arising out of the
retroactive application of any Change in Law within such 120-day period. The
protection of this Section shall be available to each Lender and the Issuing
Bank regardless of any possible contention of the invalidity or inapplicability
of the Change in Law that shall have occurred or been imposed.

 

(e)   Notwithstanding anything in this
Section 2.14 to the contrary, this Section 2.14 shall not apply to
any Change in Law with respect to Excluded Taxes, which shall be governed
exclusively by Section 2.20.

 

SECTION 2.15. Change in Legality.
(a)  Notwithstanding any other provision
of this Agreement, if any Change in Law shall make it unlawful for any
Lender to make or maintain any Eurodollar Loan or to give effect to its
obligations as contemplated hereby with respect to any Eurodollar Loan, then,
by written notice to the Borrower and to the Administrative Agent:

 

(i)  such Lender may declare that Eurodollar Loans
will not thereafter (for the duration of such unlawfulness) be made by such
Lender hereunder (or be continued for additional Interest Periods) and ABR
Loans will not thereafter (for such duration) be converted into Eurodollar
Loans, whereupon any request for a Eurodollar Borrowing (or to convert an ABR
Borrowing to a Eurodollar Borrowing or to continue a Eurodollar Borrowing for
an additional Interest Period) shall, as to such Lender only, be deemed a
request for an ABR Loan (or a request to continue an ABR Loan as such for an
additional Interest Period or to convert a Eurodollar Loan into an ABR Loan, as
the case may be), unless such declaration shall be subsequently withdrawn; and

 

(ii)  such Lender may require that all outstanding
Eurodollar Loans made by it be converted to ABR Loans, in which event all such
Eurodollar Loans shall be automatically converted to ABR Loans as of the
effective date of such notice as provided in paragraph (b) below.

 

In
the event any Lender shall exercise its rights under clause (i) or
(ii) above, all payments and prepayments of principal that would otherwise
have been applied to repay the Eurodollar Loans that would have been made by
such Lender or the converted

 

46

 

Eurodollar
Loans of such Lender shall instead be applied to repay the ABR Loans made by
such Lender in lieu of, or resulting from the conversion of, such Eurodollar
Loans.

 

(b)   For purposes of this Section 2.15, a
notice to the Borrower by any Lender shall be effective as to each Eurodollar
Loan made by such Lender, if lawful, on the last day of the Interest Period
then applicable to such Eurodollar Loan; in all other cases such notice shall
be effective on the date of receipt by the Borrower. Such Lender shall withdraw
such notice promptly following any date on which it becomes lawful for such
Lender to make and maintain Eurodollar Loans or give effect to its obligations
as contemplated hereby with respect to any Eurodollar Loan.

 

SECTION 2.16. Indemnity. The
Borrower shall indemnify each Lender against any loss or expense that such
Lender may sustain or incur as a consequence of (a) any event, other than
a default by such Lender in the performance of its obligations hereunder, which
results in (i) such Lender receiving or being deemed to receive any amount
on account of the principal of any Eurodollar Loan prior to the end of the
Interest Period in effect therefor, (ii) the conversion of any Eurodollar
Loan to an ABR Loan, or the conversion of the Interest Period with respect to any
Eurodollar Loan, in each case other than on the last day of the Interest Period
in effect therefor, or (iii) any Eurodollar Loan to be made by such Lender
(including any Eurodollar Loan to be made pursuant to a conversion or
continuation under Section 2.10) not being made after notice of such Loan
shall have been given by the Borrower hereunder (any of the events referred to
in this clause (a) being called a “Breakage Event”) or (b) any default in
the making of any payment or prepayment required to be made hereunder; provided, that the Borrower shall not so
indemnify any Lender for losses or expenses incurred as a result of a mandatory
prepayment pursuant to Section 2.13 in which one or more Lenders has
elected to decline its pro rata share of such prepayment pursuant to
Section 2.13(f). In the case of any Breakage Event, such loss shall
include an amount equal to the excess, as reasonably determined by such Lender,
of (i) its cost of obtaining funds for the Eurodollar Loan that is the
subject of such Breakage Event for the period from the date of such Breakage
Event to the last day of the Interest Period in effect (or that would have been
in effect) for such Loan over (ii) the amount of interest likely to be
realized by such Lender in redeploying the funds released or not utilized by
reason of such Breakage Event for such period. A certificate of any Lender
setting forth any amount or amounts which such Lender is entitled to receive
pursuant to this Section 2.16 shall be delivered to the Borrower and shall
be conclusive absent manifest error.

 

SECTION 2.17. Pro Rata Treatment.
Except as provided below in this Section 2.17 with respect to Swingline
Loans and as required under Section 2.13, 2.14, 2.15 or 2.21, each
Borrowing, each payment or prepayment of principal of any Borrowing, each
payment of interest on the Loans, each payment of the Commitment Fees, each
reduction of the Term Loan Commitments or the Revolving Credit Commitments and
each conversion of any Borrowing to or continuation of any Borrowing as a Borrowing
of any Type shall be allocated pro rata among the Lenders in accordance with
their respective applicable Commitments (or, if such Commitments shall have
expired or been terminated, in accordance with the respective principal amounts
of their outstanding Loans). For purposes of determining the available
Revolving Credit 

 

47

 

Commitments of the Lenders at any time, each
outstanding Swingline Loan shall be deemed to have utilized the Revolving
Credit Commitments of the Lenders (including those Lenders which shall not have
made Swingline Loans) pro rata in accordance with such respective Revolving
Credit Commitments. Each Lender agrees that in computing such Lender’s portion
of any Borrowing to be made hereunder, the Administrative Agent may, in its
discretion, round each Lender’s percentage of such Borrowing to the next higher
or lower whole dollar amount.

 

SECTION 2.18. Sharing of Setoffs.
Each Lender agrees that if it shall, through the exercise of a right of banker’s
lien, setoff or counterclaim against the Borrower or any other Loan Party, or
pursuant to a secured claim under Section 506 of Title 11 of the
United States Code or other security or interest arising from, or in lieu of,
such secured claim, received by such Lender under any applicable bankruptcy,
insolvency or other similar law or otherwise, or by any other means, obtain
payment (voluntary or involuntary) in respect of any Loan or L/C Disbursement
as a result of which the unpaid principal portion of its Loans and
participations in L/C Disbursements shall be proportionately less than the
unpaid principal portion of the Loans and participations in L/C Disbursements
of any other Lender, it shall be deemed simultaneously to have purchased from
such other Lender at face value, and shall promptly pay to such other Lender
the purchase price for, a participation in the Loans and L/C Exposure of such
other Lender, so that the aggregate unpaid principal amount of the Loans and
L/C Exposure and participations in Loans and L/C Exposure held by each Lender
shall be in the same proportion to the aggregate unpaid principal amount of all
Loans and L/C Exposure then outstanding as the principal amount of its Loans
and L/C Exposure prior to such exercise of banker’s lien, setoff or
counterclaim or other event was to the principal amount of all Loans and L/C
Exposure outstanding prior to such exercise of banker’s lien, setoff or
counterclaim or other event; provided,
however, that (i) if any
such purchase or purchases or adjustments shall be made pursuant to this
Section 2.18 and the payment giving rise thereto shall thereafter be
recovered, such purchase or purchases or adjustments shall be rescinded to the
extent of such recovery and the purchase price or prices or adjustment restored
without interest and (ii) the provisions of this Section 2.18 shall
not be construed to apply to any payment made by the Borrower pursuant to and
in accordance with the express terms of this Agreement or any payment obtained by
a Lender as consideration for the assignment of or sale of a participation in
any of its Loans to any assignee or participant. The Borrower expressly
consents to the foregoing arrangements and agrees that any Lender holding a
participation in a Loan or L/C Disbursement deemed to have been so purchased
may exercise any and all rights of banker’s lien, setoff or counterclaim with
respect to any and all moneys owing by the Borrower and Holdings to such Lender
by reason thereof as fully as if such Lender had made a Loan directly to the
Borrower in the amount of such participation.

 

SECTION 2.19. Payments. (a)  The Borrower shall make each payment
(including principal of or interest on any Borrowing or any L/C Disbursement or
any Fees or other amounts) hereunder and under any other Loan Document not
later than 1:00 p.m., New York City time, on the date when due in
immediately available dollars, without setoff, defense or counterclaim. Each
such payment (other than (i) Issuing Bank Fees, which shall be paid directly
to the Issuing Bank, and (ii) principal of and interest on 

 

48

 

Swingline Loans, which shall be paid directly to the
Swingline Lender except as otherwise provided in Section 2.22(e)) shall be
made to the Administrative Agent at its offices at Eleven Madison Avenue, New
York, NY 10010. All payments hereunder and under the other Loan Documents shall
be made in dollars. The Administrative Agent shall distribute any such payments
received by it for the account of any other person to the appropriate recipient
promptly following receipt thereof.

 

(b)   Except as otherwise expressly provided
herein, whenever any payment (including principal of or interest on any
Borrowing or any Fees or other amounts) hereunder or under any other Loan
Document shall become due, or otherwise would occur, on a day that is not a
Business Day, such payment may be made on the next succeeding Business Day, and
such extension of time shall in such case be included in the computation of
interest or Fees, if applicable.

 

SECTION 2.20. Taxes. (a)  Any and all payments by or on account of any
obligation of the Borrower or any other Loan Party hereunder or under any other
Loan Document shall be made free and clear of and without deduction for any
Indemnified Taxes or Other Taxes; provided,
that if any Indemnified Taxes or Other Taxes are required to be withheld or
deducted from such payments, then (i) the sum payable shall be increased
as necessary so that after making all required deductions or withholdings
(including deductions or withholdings applicable to additional sums payable
under this Section) the Administrative Agent, Lender or Issuing Bank (as the
case may be) receives an amount equal to the sum it would have received had no
such deductions or withholdings been made, (ii) the Borrower or such Loan
Party shall make such deductions or withholdings and (iii) the Borrower or
such Loan Party shall pay the full amount deducted or withheld to the relevant
Governmental Authority in accordance with applicable law.

 

(b)   In addition, the Borrower shall pay any
Other Taxes to the relevant Governmental Authority in accordance with
applicable law.

 

(c)   The Borrower shall indemnify the
Administrative Agent, each Lender and the Issuing Bank, within 30 days after
written demand therefor, for the full amount of any Indemnified Taxes or Other
Taxes paid by the Administrative Agent, such Lender or the Issuing Bank, as the
case may be, on or with respect to any payment by or on account of any
obligation of the Borrower or any other Loan Party hereunder or under any other
Loan Document (including Indemnified Taxes or Other Taxes imposed or asserted
on or attributable to amounts payable under this Section) and any penalties,
interest and reasonable expenses arising therefrom or with respect thereto,
whether or not such Indemnified Taxes or Other Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. A certificate as to
the amount of such payment or liability delivered to the Borrower by a Lender
or the Issuing Bank, or by the Administrative Agent on behalf of itself, a
Lender or the Issuing Bank, shall be conclusive absent manifest error.

 

(d)   As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by the Borrower or any other Loan Party to a
Governmental Authority, the 

 

49

 

Borrower shall deliver to the Administrative Agent the
original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of the return reporting such payment or other
evidence of such payment reasonably satisfactory to the Administrative Agent.

 

(e)   Any Foreign Lender that is entitled to an
exemption from or reduction of withholding tax under the law of the
jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall
deliver to the Borrower (with a copy to the Administrative Agent), on or prior
to the date a payment is to be made to such Lender under this Agreement or
promptly upon learning that any such documentation expired or became obsolete,
at the reasonable request of the Borrower, such properly completed and executed
documentation prescribed by applicable law or reasonably requested by the
Borrower as will permit such payments to be made without withholding or at a
reduced rate of withholding; provided,
that such Lender is legally entitled to complete, execute and deliver such
documentation. Such completion, execution or delivery will not be required if,
in such Lender’s judgment, it would materially prejudice the legal position of
such Lender. In addition, each Foreign Lender shall (a) furnish on or
before the date it becomes a party to the Agreement either (i) two
accurate and complete originally executed copies of U.S. Internal Revenue
Service (“IRS”)
Form W-8BEN (or successor form) or (ii) two accurate and complete
originally executed copies of IRS Form W-8ECI (or successor form), certifying,
in either case, to such Foreign Lender’s legal entitlement to an exemption or
reduction from U.S. federal withholding tax with respect to all interest
payments hereunder, and (b) provide a new Form W-8BEN (or successor form)
or Form W-8ECI (or successor form) upon the expiration or obsolescence of any
previously delivered form to reconfirm any complete exemption from, or any
entitlement to a reduction in, U.S. federal withholding tax with respect to any
interest payment hereunder; provided,
that any Foreign Lender that is not a “bank” within the meaning of Section
881(c)(3)(A) of the Code and is relying on the so-called “portfolio interest
exemption” shall also furnish a “Non-Bank Certificate” in the form of
Exhibit G together with a Form W-8BEN. Notwithstanding any other provision
of this paragraph, a Foreign Lender shall not be required to deliver any form
pursuant to this paragraph that such Foreign Lender is not legally able to
deliver.

 

(f)   Any Lender that is a United States person,
as defined in Section 7701(a)(30) of the Code, and is not an exempt recipient
within the meaning of Treasury Regulations Section 1.6049-4(c) shall deliver to
the Borrower (with a copy to the Administrative Agent) two accurate and
complete original signed copies of IRS Form W-9, or any successor form that
such person is entitled to provide at such time in order to comply with United
States back-up withholding requirements.

 

(g)   If the Administrative Agent, a Lender or an
Issuing Bank determines, in its sole discretion, that it has received a refund
of any Indemnified Taxes or Other Taxes as to which it has been indemnified by
the Borrower or with respect to which the Borrower has paid additional amounts
pursuant to this Section, it shall pay to the Borrower an amount equal to such
refund (but only to the extent of indemnity payments made, or additional
amounts paid, by the Borrower under this Section with respect to the 

 

50

 

Indemnified Taxes or Other Taxes giving rise to such
refund), net of all out-of-pocket expenses of the Administrative Agent, such
Lender or such Issuing Bank, as the case may be, and without interest (other
than any interest paid by the relevant Governmental Authority with respect to
such refund), provided, that the
Borrower, upon the request of the Administrative Agent, such Lender or such
Issuing Bank, agrees to repay the amount paid over to the Borrower (plus any
penalties, interest or other charges imposed by the relevant governmental
Authority) to the Administrative Agent, such Lender or such Issuing Bank in the
event the Administrative Agent, such Lender or such Issuing Bank is required to
repay such refund to such Governmental Authority. This paragraph shall not be
construed to require the Administrative Agent, any Lender or any Issuing Bank
to make available its tax returns (or any other information relating to its
taxes that it deems confidential) to the Borrower or any other person.

 

(h)   Failure or delay on the part of any Lender
or the Issuing Bank to demand compensation for any Indemnified Taxes or Other
Taxes shall not constitute a waiver of such Lender’s or the Issuing Bank’s
right to demand such compensation; provided,
that the Borrower shall not be under any obligation to compensate any Lender or
the Issuing Bank under paragraph (a), (b) or (c) above with respect to
Indemnified Taxes or Other Taxes with respect to any period prior to the date
that is 120 days prior to such request; provided,
further, that the foregoing
limitation shall not apply to any increased costs or reductions arising out of
the retroactive application of any Indemnified Taxes or Other Taxes within such
120-day period. The protection of this Section shall be available to each
Lender and the Issuing Bank regardless of any possible contention of the
invalidity or inapplicability of the Indemnified Taxes or Other Taxes that
shall have occurred or been imposed.

 

SECTION 2.21. Assignment of Commitments Under
Certain Circumstances; Duty to Mitigate. (a)  In the event (i) any Lender or the Issuing
Bank delivers a certificate requesting compensation pursuant to
Section 2.14, (ii) any Lender or the Issuing Bank delivers a notice
described in Section 2.15, (iii) the Borrower is required to pay any
additional amount to any Lender or the Issuing Bank or any Governmental
Authority on account of any Lender or the Issuing Bank pursuant to
Section 2.20 or (iv) any Lender shall become a Defaulting Lender or
(v) any Lender refuses to consent to any amendment, waiver or other
modification of any Loan Document requested by the Borrower that requires the
consent of a greater percentage of the Lenders than the Required Lenders and
such amendment, waiver or other modification is consented to by the Required
Lenders, the Borrower may, upon notice to such Lender or the Issuing Bank, as
the case may be, and the Administrative Agent, require such Lender or the
Issuing Bank to transfer and assign (in accordance with and subject to the
restrictions contained in Section 9.04, other than 9.04(b)(iv)(B)), all of
its interests, rights and obligations under this Agreement (or, in the case of
clause (iv) above, all of its interests, rights and obligation with respect to
the Class of Loans or Commitments that is the subject of the related consent,
amendment, waiver or other modification) to an assignee that shall assume such
assigned obligations (which assignee may be another Lender, if a Lender accepts
such assignment); provided, that
(x) the Borrower shall have received the prior written consent of the
Administrative Agent (and, if a Revolving Credit Commitment is being assigned,
of the Issuing Bank and the Swingline Lender) with 

 

51

 

regard to the identity of the assignee, which consents
shall not unreasonably be withheld or delayed, and (y) such assignee (or
the Borrower, in the case of amounts then due and payable by it) shall have
paid to the affected Lender or the Issuing Bank in immediately available funds
an amount equal to the sum of the principal of and interest accrued to the date
of such payment on the outstanding Loans or L/C Disbursements of such Lender or
the Issuing Bank, respectively, plus all Fees and other amounts accrued for the
account of such Lender or the Issuing Bank hereunder with respect thereto
(including any amounts under Sections 2.14 and 2.16); provided, further,
that if prior to receipt of notice of any such transfer and assignment the
circumstances or event that resulted in such Lender’s or the Issuing Bank’s
claim for compensation under Section 2.14, notice under Section 2.15
or the amounts paid pursuant to Section 2.20, as the case may be, cease to
cause such Lender or the Issuing Bank to suffer increased costs or reductions
in amounts received or receivable or reduction in return on capital, or cease
to have the consequences specified in Section 2.15, or cease to result in
amounts being payable under Section 2.20, as the case may be (including as
a result of any action taken by such Lender or the Issuing Bank pursuant to
paragraph (b) below), or if such Lender or the Issuing Bank shall waive
its right to claim further compensation under Section 2.14 in respect of
such circumstances or event or shall withdraw its notice under
Section 2.15 or shall waive its right to further payments under Section 2.20
in respect of such circumstances or event or shall consent to the proposed
amendment, waiver, consent or other modification, as the case may be, then such
Lender or the Issuing Bank shall not thereafter be required to make any such
transfer and assignment hereunder. Each Lender hereby grants to the
Administrative Agent an irrevocable power of attorney (which power is coupled
with an interest) to execute and deliver, on behalf of such Lender as assignor,
any Assignment and Acceptance necessary to effectuate any assignment of such
Lender’s interests hereunder in respect of the circumstances contemplated by
this Section 2.21(a).

 

(b)   If (i) any Lender or the Issuing Bank
shall request compensation under Section 2.14, (ii) any Lender or the
Issuing Bank delivers a notice described in Section 2.15 or (iii) the
Borrower is required to pay any additional amount to any Lender or the Issuing
Bank or any Governmental Authority on account of any Lender or the Issuing
Bank, pursuant to Section 2.20, then such Lender or the Issuing Bank shall
use reasonable efforts (which shall not require such Lender or the Issuing Bank
to incur an unreimbursed loss or unreimbursed cost or expense or otherwise take
any action inconsistent with its internal policies or legal or regulatory
restrictions or suffer any disadvantage or burden deemed by it to be
significant) (x) to file any certificate or document reasonably requested
by the Borrower or (y) to assign its rights and delegate and transfer its
obligations hereunder to another of its offices, branches or affiliates, if
such filing or assignment would reduce its claims for compensation under
Section 2.14 or enable it to withdraw its notice pursuant to
Section 2.15 or would reduce amounts payable pursuant to Section 2.20,
as the case may be, in the future. The Borrower hereby agrees to pay all
reasonable out-of-pocket costs and expenses incurred by any Lender or the
Issuing Bank in connection with any such filing or assignment, delegation and
transfer.

 

SECTION 2.22. Swingline Loans. (a)  Swingline Commitment. Subject to the terms
and conditions herein set forth, the Swingline Lender agrees to make loans to
the 

 

52

 

Borrower at any time and from time to time on or after
the Closing Date and until the earlier of the Revolving Credit Maturity Date
and the termination of the Revolving Credit Commitments, in an aggregate
principal amount at any time outstanding that will not result in (i) the
aggregate principal amount of all Swingline Loans exceeding $10,000,000 in the
aggregate or (ii) the Aggregate Revolving Credit Exposure, after giving
effect to any Swingline Loan, exceeding the Total Revolving Credit Commitment.
Each Swingline Loan shall be in a principal amount that is an integral multiple
of $250,000. The Swingline Commitment may be terminated or reduced from time to
time as provided herein. Within the foregoing limits, the Borrower may borrow,
pay or prepay and reborrow Swingline Loans hereunder, subject to the terms,
conditions and limitations set forth herein.

 

(b)   Swingline Loans. The Borrower shall notify
the Swingline Lender by fax, or by telephone (promptly confirmed by fax), not
later than 12:00 noon, New York City time, on the day of a proposed Swingline
Loan. Such notice shall be delivered on a Business Day, shall be irrevocable
and shall refer to this Agreement and shall specify the requested date (which
shall be a Business Day) and amount of such Swingline Loan. The Swingline
Lender shall make each Swingline Loan available to the Borrower by means of a
credit to an account designated by the Borrower promptly on the date such
Swingline Loan is so requested.

 

(c)   Prepayment. The Borrower shall have the right
at any time and from time to time to prepay any Swingline Loan, in whole or in
part, upon giving written or fax notice (or telephone notice promptly confirmed
by written, or fax notice) to the Swingline Lender before 1:00 p.m., New
York City time, on the date of prepayment at the Swingline Lender’s address for
notices specified in Section 9.01; provided,
that any such notice delivered by the Borrower may state that such notice is
conditioned upon the effectiveness of other financing arrangements, in which
case such notice may be revoked by the Borrower (by notice to the Administrative
Agent on or prior to the specified effective date) if such condition is not
satisfied.

 

(d)   Interest. Each Swingline Loan shall be an ABR
Loan and, subject to the provisions of Section 2.07, shall bear interest
as provided in Section 2.06(a).

 

(e)   Participations. The Swingline Lender may by
written notice given to the Administrative Agent not later than
11:00 a.m., New York City time, on any Business Day require the Revolving
Credit Lenders to acquire participations on such Business Day in all or a
portion of the Swingline Loans outstanding. Such notice shall specify the
aggregate amount of Swingline Loans in which Revolving Credit Lenders will
participate. The Administrative Agent will, promptly upon receipt of such
notice, give notice to each Revolving Credit Lender, specifying in such notice
such Lender’s Pro Rata Percentage of such Swingline Loan or Loans. In
furtherance of the foregoing, each Revolving Credit Lender hereby absolutely
and unconditionally agrees, upon receipt of notice as provided above, to pay to
the Administrative Agent, for the account of the Swingline Lender, such
Revolving Credit Lender’s Pro Rata Percentage of such Swingline Loan or Loans.
Each Revolving Credit Lender acknowledges and agrees that its obligation to
acquire participations in Swingline Loans pursuant to this paragraph is 

 

53

 

absolute and unconditional and shall not be affected
by any circumstance whatsoever, including the occurrence and continuance of a
Default or an Event of Default, and that each such payment shall be made
without any offset, abatement, withholding or reduction whatsoever. Each
Revolving Credit Lender shall comply with its obligation under this paragraph
by wire transfer of immediately available funds, in the same manner as provided
in Section 2.02(c) with respect to Loans made by such Lender (and
Section 2.02(c) shall apply, mutatis
mutandis, to the payment obligations of the Lenders) and the
Administrative Agent shall promptly pay to the Swingline Lender the amounts so
received by it from the Lenders. The Administrative Agent shall notify the
Borrower of any participations in any Swingline Loan acquired pursuant to this
paragraph and thereafter payments in respect of such Swingline Loan shall be
made to the Administrative Agent and not to the Swingline Lender. Any amounts
received by the Swingline Lender from the Borrower (or other party on behalf of
the Borrower) in respect of a Swingline Loan after receipt by the Swingline
Lender of the proceeds of a sale of participations therein shall be promptly
remitted to the Administrative Agent; any such amounts received by the
Administrative Agent shall be promptly remitted by the Administrative Agent to
the Lenders that shall have made their payments pursuant to this paragraph and
to the Swingline Lender, as their interests may appear. The purchase of
participations in a Swingline Loan pursuant to this paragraph shall not relieve
the Borrower (or other party liable for obligations of the Borrower) of any
default in the payment thereof.

 

SECTION 2.23. Letters of Credit.
(a)  General.
The Borrower may request the issuance of a Letter of Credit for its own account
or for the account of any of its Subsidiaries (in which case the Borrower and
any such Subsidiary shall be co-applicants with respect to such Letter of
Credit), in a form reasonably acceptable to the Administrative Agent and the
Issuing Bank, at any time and from time to time on or after the Closing Date
and prior to the earlier to occur of (i) the termination of the Revolving
Credit Commitments and (ii) the date that is 10 Business Days prior to the
Revolving Credit Maturity Date. This Section shall not be construed to impose
an obligation upon the Issuing Bank to issue any Letter of Credit that is
inconsistent with the terms and conditions of this Agreement. All Letters of
Credit shall be denominated in dollars. On and as of the Closing Date each
Existing Letter of Credit shall be deemed to constitute a Letter of Credit
issued hereunder on the Closing Date.

 

(b)   Notice of Issuance, Amendment, Renewal, Extension; Certain
Conditions. In
order to request the issuance of a Letter of Credit (or to amend, renew or
extend an existing Letter of Credit), the Borrower shall hand deliver or fax to
the Issuing Bank and the Administrative Agent (reasonably in advance of the
requested date of issuance, amendment, renewal or extension) a notice
requesting the issuance of a Letter of Credit, or identifying the Letter of
Credit to be amended, renewed or extended, the date of issuance, amendment,
renewal or extension, the date on which such Letter of Credit is to expire
(which shall comply with paragraph (c) below), the amount of such Letter
of Credit, the name and address of the beneficiary thereof and such other
information as shall be necessary to prepare such Letter of Credit. A Letter of
Credit shall be issued, amended, renewed or extended only if, and upon
issuance, amendment, renewal or extension of each Letter of Credit the Borrower
shall be deemed to represent and warrant

 

54

 

that, after giving effect to such issuance, amendment,
renewal or extension (i) the L/C Exposure shall not exceed $20,000,000 and
(ii) the Aggregate Revolving Credit Exposure shall not exceed the Total
Revolving Credit Commitment.

 

(c)   Expiration Date. Each Letter of Credit shall expire at the close of
business on the earlier of the date one year after the date of the issuance of
such Letter of Credit and the date that is five Business Days prior to the
Revolving Credit Maturity Date, unless such Letter of Credit expires by its
terms on an earlier date; provided,
however, that a Letter of Credit
may, upon the request of the Borrower, include a provision whereby such Letter
of Credit shall be renewed automatically for additional consecutive periods of
12 months or less (but not beyond the date that is five Business Days prior to
the Revolving Credit Maturity Date) unless the Issuing Bank notifies the
beneficiary thereof at least 30 days (or such longer period as may be
specified in such Letter of Credit) prior to the then-applicable expiration
date that such Letter of Credit will not be renewed.

 

(d)   Participations. By the issuance of a Letter of Credit and without any
further action on the part of the Issuing Bank or the Lenders, the Issuing Bank
hereby grants to each Revolving Credit Lender, and each such Lender hereby
acquires from the Issuing Bank, a participation in such Letter of Credit equal
to such Lender’s Pro Rata Percentage of the aggregate amount available to be
drawn under such Letter of Credit, effective upon the issuance of such Letter
of Credit. In consideration and in furtherance of the foregoing, each Revolving
Credit Lender hereby absolutely and unconditionally agrees to pay to the
Administrative Agent, for the account of the Issuing Bank, such Lender’s Pro
Rata Percentage of each L/C Disbursement made by the Issuing Bank and not
reimbursed by the Borrower (or, if applicable, another party pursuant to its
obligations under any other Loan Document) forthwith on the date due as
provided in Section 2.02(f). Each Revolving Credit Lender acknowledges and
agrees that its obligation to acquire participations pursuant to this paragraph
in respect of Letters of Credit is absolute and unconditional and shall not be
affected by any circumstance whatsoever, including the occurrence and
continuance of a Default or an Event of Default, and that each such payment
shall be made without any offset, abatement, withholding or reduction whatsoever.

 

(e)   Reimbursement.
If the Issuing Bank shall make any L/C Disbursement in respect of a
Letter of Credit, the Borrower shall pay to the Administrative Agent an amount
equal to such L/C Disbursement not later than 10:00 a.m., New York City
time, on the immediately following Business Day.

 

(f)   Obligations Absolute. The Borrower’s obligations to reimburse
L/C Disbursements as provided in paragraph (e) above shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement, under any and all circumstances whatsoever,
and irrespective of:

 

(i)  any lack of validity or enforceability of any
Letter of Credit or any Loan Document, or any term or provision therein;

 

55

 

(ii)  any amendment or waiver of or any consent to
departure from all or any of the provisions of any Letter of Credit or any Loan
Document;

 

(iii)  the existence of any claim, setoff, defense
or other right that the Borrower, any other party guaranteeing, or otherwise
obligated with, the Borrower, any Subsidiary or any other person may at any
time have against the beneficiary under any Letter of Credit, the Issuing Bank,
the Administrative Agent or any Lender or any other person, whether in
connection with this Agreement, any other Loan Document or any other related or
unrelated agreement or transaction (other than payment in full of such L/C
Disbursements);

 

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

 

(v)  payment by the Issuing Bank under a Letter of
Credit against presentation of a draft or other document that does not comply
with the terms of such Letter of Credit; and

 

(vi)  any other act or omission to act or delay of
any kind of the Issuing Bank, the Lenders, the Administrative Agent or any
other person or any other event or circumstance whatsoever, whether or not similar
to any of the foregoing, that might, but for the provisions of this Section,
constitute a legal or equitable discharge of the Borrower’s obligations
hereunder.

 

Without
limiting the generality of the foregoing, it is expressly understood and agreed
that the absolute and unconditional obligation of the Borrower hereunder to
reimburse L/C Disbursements will not be excused by the gross negligence, bad
faith or wilful misconduct of the Issuing Bank. However, the foregoing shall
not be construed to excuse the Issuing Bank from liability to the Borrower to
the extent of any direct damages (as opposed to consequential damages, claims
in respect of which are hereby waived by the Borrower to the extent permitted
by applicable law) suffered by the Borrower that are caused by the Issuing Bank’s
gross negligence, bad faith, wilful misconduct or breach of its obligations in
determining whether drafts and other documents presented under a Letter of
Credit comply with the terms thereof; it is understood that the Issuing Bank
may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or
information to the contrary and, in making any payment under any Letter of
Credit (i) the Issuing Bank’s exclusive reliance on the documents
presented to it under such Letter of Credit as to any and all matters set forth
therein, including reliance on the amount of any draft presented under such
Letter of Credit, whether or not the amount due to the beneficiary thereunder
equals the amount of such draft and whether or not any document presented
pursuant to such Letter of Credit proves to be insufficient in any respect, if
such document on its face appears to be in order, and whether or not any other
statement or any other document presented pursuant to such Letter of Credit
proves to be forged or invalid or any statement therein proves to be inaccurate
or untrue in any respect whatsoever and (ii) any noncompliance in any
immaterial respect of the documents

 

56

 

presented
under such Letter of Credit with the terms thereof shall, in each case, be
deemed not to constitute gross negligence, bad faith or wilful misconduct of
the Issuing Bank or a breach of its obligations.

 

(g)   Disbursement Procedures. The Issuing Bank shall, promptly
following its receipt thereof, examine all documents purporting to represent a
demand for payment under a Letter of Credit. The Issuing Bank shall as promptly
as possible give telephonic notification, confirmed by fax, to the
Administrative Agent and the Borrower of such demand for payment and whether
the Issuing Bank has made or will make an L/C Disbursement thereunder; provided, that any failure to give or
delay in giving such notice shall not relieve the Borrower of its obligation to
reimburse the Issuing Bank and the Revolving Credit Lenders with respect to any
such L/C Disbursement.

 

(h)   Interim Interest. If the Issuing Bank shall
make any L/C Disbursement in respect of a Letter of Credit, then, unless the
Borrower shall reimburse such L/C Disbursement in full on the same day that
such LC Disbursement is made, the unpaid amount thereof shall bear interest for
the account of the Issuing Bank, for each day from and including the date of
such L/C Disbursement, to but excluding the earlier of the date of payment by
the Borrower or the date on which interest shall commence to accrue thereon as
provided in Section 2.02(f), at the rate per annum that would apply to
such amount if such amount were an ABR Revolving Loan.

 

(i)   Removal of the Issuing Bank. The Issuing Bank
may be removed at any time by the Borrower by notice to the Issuing Bank, the
Administrative Agent and the Lenders. Upon the acceptance of any appointment as
the Issuing Bank hereunder by a Lender that shall agree to serve as successor
Issuing Bank, such successor shall succeed to and become vested with all the
interests, rights and obligations of the retiring Issuing Bank. At the time
such removal shall become effective, the Borrower shall pay all accrued and
unpaid fees pursuant to Section 2.05(c)(ii). The acceptance of any
appointment as the Issuing Bank hereunder by a successor Lender shall be
evidenced by an agreement entered into by such successor, in a form reasonably
satisfactory to the Borrower and the Administrative Agent, and, from and after
the effective date of such agreement, (i) such successor Lender shall have
all the rights and obligations of the previous Issuing Bank under this
Agreement and the other Loan Documents and (ii) references herein and in
the other Loan Documents to the term “Issuing Bank” shall be deemed to refer to
such successor or to any previous Issuing Bank, or to such successor and all
previous Issuing Banks, as the context shall require. After the resignation or
removal of the Issuing Bank hereunder, the retiring Issuing Bank shall remain a
party hereto and shall continue to have all the rights and obligations of an
Issuing Bank under this Agreement and the other Loan Documents with respect to
Letters of Credit issued by it prior to such removal, but shall not be required
to issue additional Letters of Credit.

 

(j)   Cash Collateralization. If any Event of Default shall occur and
be continuing, the Borrower shall, on the Business Day it receives notice from
the Administrative Agent or the Required Lenders (or, if the maturity of the
Loans has been accelerated, Revolving Credit Lenders holding participations in
outstanding Letters of 

 

57

 

Credit representing greater than 50% of the aggregate
undrawn amount of all outstanding Letters of Credit) thereof and of the amount
to be deposited, deposit in an account with the Collateral Agent, for the
benefit of the Revolving Credit Lenders, an amount in cash equal to the L/C
Exposure as of such date. Such deposit shall be held by the Collateral Agent as
collateral for the payment and performance of the Obligations. The Collateral
Agent shall have exclusive dominion and control, including the exclusive right
of withdrawal, over such account. Other than any interest earned on the
investment of such deposits in Permitted Investments, which investments shall
be made at the option and sole discretion of the Collateral Agent, such
deposits shall not bear interest. Interest or profits, if any, on such
investments shall accumulate in such account. Moneys in such account shall (i)
automatically be applied by the Administrative Agent to reimburse the Issuing
Bank for L/C Disbursements for which it has not been reimbursed, (ii) be held
for the satisfaction of the reimbursement obligations of the Borrower for the
L/C Exposure at such time and (iii) if the maturity of the Loans has been
accelerated (but subject to the consent of Revolving Credit Lenders holding
participations in outstanding Letters of Credit representing greater than 50%
of the aggregate undrawn amount of all outstanding Letters of Credit), be
applied to satisfy the Obligations. If the Borrower is required to provide an
amount of cash collateral hereunder as a result of the occurrence of an Event
of Default, such amount (to the extent not applied as aforesaid) shall be
returned to the Borrower within three Business Days after all Events of Default
have been cured or waived.

 

(k)   Additional Issuing Banks. The Borrower may, at any time and from
time to time with the consent of the Administrative Agent (which consent shall
not be unreasonably withheld or delayed) and such Lender, designate one or more
additional Lenders to act as an issuing bank under the terms of this Agreement.
Any Lender designated as an issuing bank pursuant to this paragraph (k) shall
be deemed to be an “Issuing Bank” (in addition to being a Lender) in respect of
Letters of Credit issued or to be issued by such Lender, and, with respect to
such Letters of Credit, such term shall thereafter apply to the other Issuing
Bank and such Lender.

 

SECTION 2.24. Incremental Credit Extensions. (a)  The Borrower may at any time or from time to
time after the Closing Date, by notice to the Administrative Agent (whereupon
the Administrative Agent shall promptly deliver a copy to each of the Lenders),
request (i) one or more additional tranches of term loans (the “Incremental Term Loans”)
or (ii) one or more increases in the amount of the Revolving Credit Commitments
(each such increase, a “Revolving
Commitment Increase” and, together with any Incremental Term
Loans, a “Credit
Increase”); provided,
that (i) both at the time of any such request and upon the effectiveness
of any Incremental Amendment referred to below, no Default or Event of Default
shall exist and (ii) the Borrower shall be in Pro Forma Compliance with
each of the covenants set forth in Sections 6.11 and 6.12. Each Credit
Increase shall be in an aggregate principal amount that is not less than $20,000,000
(or such lower amount that either (a) represents all remaining
availability under the limit set forth in the next sentence or (b) is
acceptable to the Administrative Agent). Notwithstanding anything to the
contrary herein, the aggregate amount of the Credit Increases shall not exceed
$100,000,000. The Incremental Term Loans (a) shall rank pari passu in right of payment and of
security with the Revolving Credit Loans and 

 

58

 

the Term Loans, (b) shall not mature earlier than
the Term Loan Maturity Date and shall not require scheduled payments of
principal at a rate exceeding quarterly payments in the amount of 0.25% of the
original principal amount thereof and (c) except as set forth above, shall
be treated substantially the same as the Term Loans with respect to covenants,
events of default, voting and mandatory and voluntary prepayments. Each notice
from the Borrower pursuant to this Section shall set forth the requested amount
and proposed terms of the relevant Credit Increases. Incremental Term Loans may
be made, and Revolving Commitment Increases may be provided, by any existing
Lender (and each existing Term Lender will have the right to make a portion of
any Incremental Term Loan and each existing Revolving Credit Lender will have
the right to provide a portion of any Revolving Commitment Increase, in each
case on terms permitted in this Section 2.24 and otherwise on terms
reasonably acceptable to the Administrative Agent) or by any other bank or other
financial institution (any such other bank or other financial institution being
called an “Additional
Lender”), provided,
that the Administrative Agent and the Borrower, and, in the case of any
Revolving Credit Increase, the Issuing Bank and the Swingline Lender shall have
consented (in each case, not to be unreasonably withheld or delayed) to such
Lender’s or Additional Lender’s making such Incremental Term Loans or providing
such Revolving Commitment Increases, if such consent would be required under
Section 9.04(b) for an assignment of Loans or Revolving Credit
Commitments, as applicable, to such Lender or Additional Lender.

 

(b)   Commitments in respect of Credit Increases
shall become Commitments (or in the case of a Revolving Commitment Increase to
be provided by an existing Revolving Credit Lender, an increase in such Lender’s
applicable Revolving Credit Commitment) under this Agreement pursuant to an
amendment (an “Incremental
Amendment”) to this Agreement and, as appropriate, the other
Loan Documents, executed by the Borrower, each Lender agreeing to provide such
Commitment, if any, each Additional Lender, if any, and the Administrative
Agent. The Incremental Amendment may, without the consent of any other Lenders,
effect such amendments to this Agreement and the other Loan Documents as may be
necessary or appropriate, in the reasonable opinion of the Administrative Agent
and the Borrower, to effect the provisions of this Section. The effectiveness
of any Incremental Amendment shall be subject to the satisfaction on the date
thereof (each, an “Incremental
Facility Closing Date”) of each of the conditions set forth in
Section 4.01 (it being understood that all references to “the date of such
Credit Event” or similar language in such Section 4.01 shall be deemed to
refer to the effective date of such Incremental Amendment). The Borrower may
use the proceeds of Incremental Term Loans for any purpose not prohibited by
this Agreement. No Lender shall be obligated to provide any Credit Increases,
unless it so agrees. Upon each increase in the Revolving Credit Commitments
pursuant to this Section, each Revolving Credit Lender immediately prior to
such increase will automatically and without further act be deemed to have
assigned to each Lender providing a portion of the Revolving Commitment
Increase (each a “Revolving
Commitment Increase Lender”) in respect of such increase, and
each such Revolving Commitment Increase Lender will automatically and without
further act be deemed to have assumed, a portion of such Revolving Credit
Lender’s participations hereunder in outstanding Letters of Credit and
Swingline Loans such that, after giving effect to each such deemed assignment
and assumption of participations, the percentage of the aggregate outstanding
(i) participations hereunder in 

 

59

 

Letters of Credit and (ii) participations
hereunder in Swingline Loans held by each Revolving Credit Lender (including
each such Revolving Commitment Increase Lender) will equal the percentage of
the aggregate Revolving Credit Commitments of all Revolving Credit Lenders
represented by such Revolving Credit Lender’s Revolving Credit Commitment and
(b) if, on the date of such increase, there are any Revolving Loans
outstanding, such Revolving Loans shall on or prior to the effectiveness of
such Revolving Commitment Increase be prepaid from the proceeds of additional
Revolving Loans made hereunder (reflecting such increase in Revolving Credit
Commitments), which prepayment shall be accompanied by accrued interest on the
Revolving Loans being prepaid and any costs incurred by any Lender in
accordance with Section 2.16.

 

(c)   This Section 2.24 shall supersede any
provisions in Section 2.18 or 9.08 to the contrary.

 

ARTICLE III

 

Representations and Warranties

 

Each
of Holdings and the Borrower represents and warrants (it being understood that,
for purposes of the representations and warranties made in the Loan Documents
on the Closing Date, such representations and warranties shall be construed as
though the Transactions have been consummated) to the Administrative Agent, the
Collateral Agent, the Issuing Bank and each of the Lenders that:

 

SECTION 3.01. Organization; Powers.
Holdings, the Borrower and each of the Subsidiaries (a) is duly organized
or formed, validly existing and in good standing under the laws of the
jurisdiction of its organization, except where the failure to be in good
standing could not reasonably be expected to have a Material Adverse Effect,
(b) has all requisite power and authority to own its property and assets
and to carry on its business as now conducted and as proposed to be conducted,
except where the failure to have such power and authority could not reasonably
be expected to result in a Material Adverse Effect, (c) is qualified to do
business in, and is in good standing in, every jurisdiction where its
ownership, lease or operation of properties or the conduct of its business
requires such qualification, except where the failure to so qualify could not reasonably
be expected to result in a Material Adverse Effect, and (d) has the
requisite power and authority to execute, deliver and perform its obligations
under each of the Loan Documents and each other agreement or instrument
contemplated thereby to which it is a party.

 

SECTION 3.02. Authorization. The
execution, delivery and performance of the Loan Documents, including the
granting of Liens, borrowing of Loans and the use of the proceeds therefrom,
(a) have been duly authorized by all requisite corporate or limited
liability company and, if required, stockholder or member action and
(b) will not (i) violate (A) any provision of any applicable
law, statute, rule or regulation, or of the certificate or articles of
incorporation or other constitutive documents or by-laws or operating agreement
of any Loan Party, (B) any applicable order of any Governmental Authority
or (C) any provision of any indenture, agreement or other instrument to
which 

 

60

 

Holdings or any of its Subsidiaries is a party or by
which any of them or any of their property is bound (other than the Existing
Debt), (ii) be in conflict with, result in a breach of or constitute
(alone or with notice or lapse of time or both) a default under, or give rise
to any right to accelerate or to require the prepayment, repurchase or
redemption of any obligation under any such indenture, agreement or other
instrument (other than the Existing Debt) or (iii) result in the creation
or imposition of any Lien upon or with respect to any property or assets now
owned or hereafter acquired by Holdings, the Borrower or any Subsidiary (other
than Liens created or permitted hereunder or under the Security Documents and
the Second Priority Lien); except with respect to any violation, conflict,
breach, default, acceleration, prepayment, repurchase, redemption or creation
or imposition of any Lien referred to in clauses (i) through (iii), to the
extent that such violation, conflict, breach, default, acceleration, prepayment,
repurchase, redemption or creation or imposition of Lien could not reasonably
be expected to result in a Material Adverse Effect.

 

SECTION 3.03. Enforceability. This
Agreement has been duly executed and delivered by Holdings and the Borrower and
constitutes, and each other Loan Document when executed and delivered by each
Loan Party thereto will constitute, a legal, valid and binding obligation of
such Loan Party enforceable against such Loan Party in accordance with its
terms, except as may be limited by bankruptcy, insolvency, fraudulent transfer,
reorganization, receivership, moratorium or similar laws of general
applicability relating to or limiting creditors’ rights generally or by general
equity principles.

 

SECTION 3.04. Governmental Approvals.
Except to the extent the failure to obtain or make could not reasonably be
expected to result in a Material Adverse Effect, no action, consent or approval
of, registration or filing with or any other action by any Governmental
Authority is necessary or will be required in connection with the Loan
Documents, except for (a) the filing of Uniform Commercial Code financing
statements and filings with the United States Patent and Trademark Office and
the United States Copyright Office, (b) recordation of the Mortgages and
(c) such as have been made or obtained and are in full force and effect.

 

SECTION 3.05. Financial Statements.
(a)  The Borrower has heretofore
furnished to the Administrative Agent the Company’s consolidated balance sheets
and related statements of income, stockholder’s equity and cash flows
(i) as of and for the fiscal year ended December 31, 2005, audited by
and accompanied by the report of KPMG LLP, independent public accountants, and
(ii) as of and for the fiscal quarter ended March 31, 2006, and each
fiscal quarter ended after March 31, 2006 and at least 45 days before
the Closing Date, certified by its chief financial officer (or officer with
reasonably equivalent responsibilities). Such financial statements present
fairly in all material respects the financial condition and results of
operations and cash flows of the Company and its consolidated subsidiaries as
of such dates and for such periods. Such balance sheets and the notes thereto
disclose all material liabilities, direct or contingent, of the Company and its
consolidated subsidiaries as of the dates thereof. Such financial statements
were prepared in accordance with GAAP consistently applied throughout the
period covered thereby, except as otherwise noted therein and, subject, in the
case of 

 

61

 

unaudited financial statements, to year-end audit
adjustments and the absence of footnotes.

 

(b)   The Borrower has heretofore delivered to the
Administrative Agent its unaudited pro forma consolidated balance sheet and
related pro forma statements of income and cash flows as of the fiscal quarter
ended March 31, 2006, prepared giving effect to the Transactions as if
they had occurred, with respect to such balance sheet, on such date and, with
respect to such other financial statements, on the first day of the four-fiscal
quarter period ending on such date. Such pro forma financial statements have
been prepared in good faith by the Borrower, based on the assumptions believed
by the Borrower on the Closing Date to be reasonable, are based in all material
respects on the information reasonably available to the Borrower as of the date
of delivery thereof, reflect in all material respects the adjustments required
to be made to give effect to the Transactions it being understood that actual
results may vary from such projected results and such variations may be
material.

 

SECTION 3.06. No Material Adverse Change.
Since the Closing Date, no event, change or condition has occurred that
(individually or in the aggregate) has had, or could reasonably be expected to
have, a Material Adverse Effect.

 

SECTION 3.07. Title to Properties; Possession
Under Leases. (a)  Each of
Holdings, the Borrower and the Subsidiaries has good and indefeasible title in
fee simple to, or valid leasehold interests in, all its material properties and
assets (including all Mortgaged Property). Other than (i) minor defects in
title that do not materially interfere with its ability to conduct its business
or to utilize such assets for their intended purposes and (ii) except
where the failure to have such title or other property interests described
above could not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect, all such material properties and assets
are free and clear of Liens, other than Liens expressly permitted by
Section 6.02.

 

(b)   None of Holdings, the Borrower or the
Subsidiaries has knowledge of the continuance of any default under any lease to
which it is a party and, to each of their knowledge, all such leases are in
full force and effect, except to the extent any such default or lack of
enforceability could not reasonably be expected to have a Material Adverse
Effect.

 

(c)   As of the Closing Date, neither Holdings nor
the Borrower has received any notice of, nor has any knowledge of, any pending
or contemplated condemnation proceeding affecting the Mortgaged Properties or
any sale or disposition thereof in lieu of condemnation.

 

(d)   As of the Closing Date, immediately
following the consummation of the Transactions, none of Holdings, the Borrower
or any of the Subsidiaries is obligated under any right of first refusal,
option or other contractual right to sell, assign or otherwise dispose of any
material Mortgaged Property or any interest therein.

 

62

 

SECTION 3.08. Subsidiaries. As of
the Closing Date, Holdings does not have any Subsidiaries other than the
Borrower and Subsidiaries of the Borrower. Schedule 3.08 sets forth as of
the Closing Date a list of all Subsidiaries of Holdings and the percentage
ownership interest of Holdings therein. The shares of capital stock or other
ownership interests so indicated on Schedule 3.08 are fully paid and
non-assessable and are owned by Holdings, directly or indirectly, free and
clear of all Liens (other than Liens created under the Security Documents, any
Second Priority Lien and any Liens permitted hereby).

 

SECTION 3.09. Litigation; Compliance with Laws.
(a)  There are no actions, suits or
proceedings at law or in equity or by or before any Governmental Authority now
pending or, to the knowledge of Holdings or the Borrower, threatened in writing
against Holdings or the Borrower or any Subsidiary or any business, property or
rights of any such person (i) that purport to affect or pertain to any
Loan Document or (ii) could reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect.

 

(b)   Other than as could not reasonably be
expected to result in a Material Adverse Effect, none of Holdings, the Borrower
or any of the Subsidiaries or any of their respective material properties is in
violation of, nor will the continued operation of their material properties as
currently operated violate, any applicable law, rule or regulation (including
any zoning, building, ordinance, code or approval or any building permits) or
any restrictions of record or agreements affecting the Mortgaged Property, or
is in default with respect to any judgment, writ, injunction, decree or order
of any Governmental Authority, where any such violation or default could
reasonably be expected to result in a Material Adverse Effect.

 

SECTION 3.10. Agreements. Other
than as could not reasonably be expected to result in a Material Adverse
Effect, none of Holdings, the Borrower or any of the Subsidiaries is in default
under any indenture or other agreement or instrument evidencing Indebtedness,
or any other material agreement or instrument to which it is a party or by
which it or any of its properties or assets are bound.

 

SECTION 3.11. Federal Reserve Regulations.
(a)  None of Holdings, the Borrower or
any of the Subsidiaries is engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of buying or
carrying Margin Stock.

 

(b)   No part of the proceeds of any Loan or any
Letter of Credit will be used to purchase or carry any margin stock or to
extend credit to others for the purpose of purchasing or carrying any margin
stock in violation of Regulation U or X issued by the Board.

 

SECTION 3.12. Investment Company Act.
None of Holdings, the Borrower or any Subsidiary is an “investment company” as
defined in, or subject to regulation under, the Investment Company Act of 1940.

 

63

 

SECTION 3.13. Tax Returns. Each of
Holdings, the Borrower and the Subsidiaries has, except where the failure to so
file or pay could not be reasonably expected to have a Material Adverse Effect,
filed or caused to be filed all Federal, state and other tax returns required
to have been filed by it and has paid, caused to be paid, or made provisions
for the payment of all taxes due and payable by it and all material assessments
received by it, except such taxes and assessments that are not overdue by more
than 30 days or the amount or validity of which are being contested in
good faith by appropriate proceedings and for which Holdings, the Borrower or
such Subsidiary, as applicable, shall have set aside on its books adequate
reserves.

 

SECTION 3.14. No Material Misstatements.
As of the Closing Date, to the knowledge of Holdings and the Borrower, the
Confidential Information Memorandum and other written information, reports,
financial statements, exhibits and schedules furnished by or on behalf of Holdings
or the Borrower to the Administrative Agent or the Lenders (other than
projections and other forward looking information and information of a general
economic or industry specific nature) on or prior to the Closing Date in
connection with the transactions contemplated hereby or the negotiation of any
Loan Document or included therein or delivered pursuant thereto (taken as a
whole) did not and, as of the Closing Date, does not contain any material
misstatement of fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not materially misleading. The projections were prepared in good faith on
the basis of reasonable assumptions in light of the conditions existing at the
time of delivery of such projections, and represented, at the time of delivery
thereof, a reasonable good faith estimate of future financial performance by
Holdings and the Borrower (it being understood that such forecasts or
projections are subject to significant uncertainties and contingencies, many of
which are beyond the control of Holdings and the Borrower, and that Holdings
and the Borrower make no representation as to the attainability of such
forecasts or projections or as to whether such forecasts or projections will be
achieved or will materialize and that actual results may vary from projected
results and such variances may be material).

 

SECTION 3.15. Employee Benefit Plans.
Each of the Borrower and its ERISA Affiliates is in compliance, with respect to
each benefit plan or arrangement, with the applicable provisions of ERISA and
the Code and the regulations and published interpretations thereunder, except
for such non-compliance that could not reasonably be expected to have a
Material Adverse Effect. No ERISA Event has occurred or is reasonably expected
to occur that, when taken together with all other such ERISA Events, could
reasonably be expected to result in a Material Adverse Effect. The present
value of all benefit liabilities under each Plan (based on the assumptions used
for purposes of Statement of Financial Accounting Standards No. 87) did
not, as of the last annual valuation date applicable thereto, exceed by more
than $20,000,000 the fair market value of the assets of such Plan, and the
present value of all benefit liabilities of all underfunded Plans (based on the
assumptions used for purposes of Statement of Financial Accounting Standards
No. 87) did not, as of the last annual valuation dates applicable thereto,
exceed by more than $20,000,000 the fair market value of the assets of all such
underfunded Plans.

 

64

 

SECTION 3.16. Environmental Matters.
Except with respect to any matters that, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect, none
of Holdings, the Borrower or any of the Subsidiaries (i) has failed to
comply with any Environmental Law or to obtain, maintain or comply with any
permit, license or other approval required under any Environmental Law,
(ii) has become subject to any Environmental Liability, (iii) has
received notice of any claim with respect to any Environmental Liability or
(iv) knows of any condition, event or circumstance that could reasonably be
expected to result in any Environmental Liability.

 

SECTION 3.17. Security Documents.
All filings and other actions necessary to perfect and protect the Liens on the
Collateral created under, and in the manner contemplated by, the Security
Documents have been duly made or taken or otherwise provided for in a manner
reasonably acceptable to Collateral Agent and are in full force and effect and
the Security Documents create in favor of the Collateral Agent for the benefit
of the Secured Parties a valid and, together with such filings and other
actions, perfected first priority Lien in the Collateral, securing the payment
of the Obligations, subject to Liens permitted by Section 6.02. The Loan
Parties are the legal and beneficial owners of the Collateral free and clear of
any Lien, except for the Liens created or permitted under the Loan Documents.

 

SECTION 3.18. Location of Real Property and Leased
Premises.  (a)  Schedule 3.18(a) lists completely and
correctly (in all material respects) as of the Closing Date all real property
owned by the Borrower and the Subsidiaries and the addresses thereof. Except as
otherwise provided in Schedule 3.18(a), the Borrower and the Subsidiaries own
in fee all the real property set forth on such schedule, except to the extent
the failure to have such title could not reasonably be expected to have a
Material Adverse Effect.

 

(b)   Schedule 3.18(b) lists completely and
correctly (in all material respects) as of the Closing Date all real property
leased by the Borrower and the Subsidiaries and the addresses thereof. Except
as otherwise provided on Schedule 3.18(b), the Borrower and the Subsidiaries
have valid leasehold interests in all the real property set forth on such
schedule, except to the extent the failure to have such title could not
reasonably be expected to have a Material Adverse Effect.

 

SECTION 3.19. Labor Matters. Except
as in the aggregate has not had and could not be reasonably expected to have a
Material Adverse Effect, as of the Closing Date, (a) there are no strikes,
lockouts or slowdowns against Holdings, the Borrower or any Subsidiary pending
or, to the knowledge of Holdings or the Borrower, threatened in writing,
(b) the hours worked by and payments made to employees of Holdings, the
Borrower and the Subsidiaries have not been in violation of the Fair Labor
Standards Act or any other applicable Federal, state, local or foreign law
dealing with such matters, (c) all payments due from Holdings, the
Borrower or any Subsidiary, or for which any claim may be made against Holdings,
the Borrower or any Subsidiary, on account of wages and employee health and
welfare insurance and other benefits, have been paid or accrued as a liability
on the books of Holdings, the Borrower or such Subsidiary and 

 

65

 

(d) the consummation of the Transactions will not
give rise to any right of termination or right of renegotiation on the part of
any union under any collective bargaining agreement to which Holdings, the
Borrower or any Subsidiary is bound.

 

SECTION 3.20. Solvency. On the
Closing Date after giving effect to the Transactions, the Loan Parties, taken
as a whole, are Solvent.

 

ARTICLE IV

 

Conditions of Lending

 

The
obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters
of Credit hereunder are subject to the satisfaction of the following
conditions:

 

SECTION 4.01. All Credit Events. On
the date of the making of each Loan, including the making of a Swingline Loan
and on the date of each issuance, amendment, extension or renewal of a Letter
of Credit (each such event being called a “Credit Event”; it being understood that the
conversion into or continuation of a Eurodollar Loan does not constitute a
Credit Event):

 

(a)   The Administrative Agent shall have received
a notice of such Loan as required by Section 2.03 (or such notice shall
have been deemed given in accordance with Section 2.02) or, in the case of
the issuance, amendment, extension or renewal of a Letter of Credit, the
Issuing Bank and the Administrative Agent shall have received a notice
requesting the issuance, amendment, extension or renewal of such Letter of
Credit as required by Section 2.23(b) or, in the case of the Borrowing of
a Swingline Loan, the Swingline Lender and the Administrative Agent shall have
received a notice requesting such Swingline Loan as required by
Section 2.22(b).

 

(b)   The representations and warranties set forth
in Article III and in each other Loan Document shall be true and correct
in all material respects on and as of the date of such Credit Event with the
same effect as though made on and as of such date, except to the extent such
representations and warranties expressly relate to an earlier date, in which
case they shall be true and correct in all material respects as of such earlier
date; provided, however, that solely for purposes of
representations and warranties made on the Closing Date with respect to the
Company and its subsidiaries, such representations and warranties shall be
limited in all respects to the Specified Representations (as defined below). “Specified Representations”
shall mean the representations and warranties in Sections 3.01, 3.02, 3.03,
3.11, 3.12, 3.17 and 3.20.

 

(c)   At the time of and immediately after such
Credit Event, no Default or Event of Default shall have occurred and be
continuing.

 

Each
Credit Event (other than a conversion of Loans to another Type or a
continuation of Eurodollar Loans) shall be deemed to constitute a
representation and warranty by the Borrower and Holdings on the date of such
Credit Event as to the matters specified in paragraphs (b) and (c) of this
Section 4.01.

 

66

 

SECTION 4.02. First Credit Event.
On the Closing Date:

 

(a)   The Administrative Agent shall have
received, on behalf of itself, the Lenders and the Issuing Bank, an opinion of
(i) Weil, Gotshal & Manges LLP, counsel for the Loan Parties, and (ii)
each local counsel listed on Schedule 4.02(a), in each case (A) dated the
Closing Date and (B) addressed to the Issuing Bank, the Administrative Agent
and the Lenders, and (C) in form and substance reasonably satisfactory to
the Administrative Agent.

 

(b)   The Administrative Agent shall have received
(i) a copy of the certificate or articles of incorporation or organization,
including all amendments thereto, of each Loan Party, certified as of a recent
date by the Secretary of State of the state of its organization, and a
certificate as to the good standing of each Loan Party as of a recent date,
from such Secretary of State; (ii) a certificate of the Secretary or
Assistant Secretary of each Loan Party dated the Closing Date and certifying
(A) that attached thereto is a true and complete copy of the by-laws or
operating (or limited liability company) agreement of such Loan Party as in
effect on the Closing Date and at all times since a date prior to the date of
the resolutions described in clause (B) below, (B) that attached
thereto is a true and complete copy of resolutions duly adopted by the Board of
Directors (or equivalent body) of such Loan Party authorizing the execution,
delivery and performance of the Loan Documents to which such person is a party
and, in the case of the Borrower, the borrowings hereunder, and that such
resolutions have not been modified, rescinded or amended and are in full force
and effect, (C) that the certificate or articles of incorporation or
organization of such Loan Party have not been amended since the date of the
last amendment thereto shown on the certificate of good standing furnished pursuant
to clause (i) above, and (D) as to the incumbency and specimen
signature of each officer executing any Loan Document or any other document
delivered in connection herewith on behalf of such Loan Party; and (iii) a
certificate of another officer as to the incumbency and specimen signature of
the Secretary or Assistant Secretary executing the certificate pursuant to
clause (ii) above.

 

(c)   The Administrative Agent shall have received
a certificate, dated the Closing Date and signed by a Financial Officer of the
Borrower, confirming compliance with the conditions precedent set forth in
paragraphs (b) and (c) of Section 4.01.

 

(d)   The Administrative Agent shall have received
all Fees and other amounts due and payable on or prior to the Closing Date, including,
to the extent invoiced at least one Business Day prior to the Closing Date,
reimbursement or payment of all out-of-pocket expenses required to be
reimbursed or paid by the Borrower hereunder or under any other Loan Document.

 

(e)   The Security Documents shall have been duly
executed by each Loan Party that is to be a party thereto and shall be in full
force and effect and each document, except as otherwise provided or agreed to
by the Administrative Agent and the Borrower (including each Uniform Commercial
Code financing statement) required by law or reasonably requested by the
Administrative Agent or the Collateral Agent to be filed, registered or
recorded in order to create in favor of the Collateral Agent for the benefit of

 

67

 

the Secured Parties a valid, legal and perfected first
priority (except to the extent otherwise provided therein) security interest in
and Lien on the Collateral (subject to any Lien (other than any Second Priority
Lien) expressly permitted by Section 6.02) described in the Security Documents
shall have been prepared and delivered to the Collateral Agent on the Closing
Date. The Pledged Collateral shall have been duly and validly pledged under the
Guarantee and Collateral Agreement to the Collateral Agent, for the ratable
benefit of the Secured Parties, and all certificates or instruments (if any),
except as otherwise provided or agreed to by the Administrative Agent and the
Borrower, representing Pledged Collateral consisting of certificated equity
securities issued by the Borrower or any Subsidiary or instruments issued by
Holdings, the Borrower or any Subsidiary, accompanied by instruments of
transfer and stock powers endorsed in blank, shall be in the actual possession
of the Collateral Agent.

 

(f)   The Collateral Agent shall, except as
otherwise provided or agreed to by the Administrative Agent and the Borrower,
have received the results of searches of the Uniform Commercial Code filings
(or equivalent filings) made with respect to the Loan Parties in the states (or
other jurisdictions) of formation of such person, together with copies of the
financing statements (or similar documents) disclosed by such search, and
accompanied by evidence reasonably satisfactory to the Collateral Agent that
the Liens indicated in any such financing statement (or similar document) would
be permitted under Section 6.02 or have been or will be contemporaneously
released or terminated.

 

(g)   (i)  Each of the Security
Documents, in form and substance reasonably satisfactory to the Administrative
Agent, relating to each of the Mortgaged Properties shall, except as otherwise
provided or agreed to by the Administrative Agent and the Borrower, have been
duly executed by the parties thereto and delivered to the Collateral Agent and
shall be in full force and effect, (ii) each of such Mortgaged Properties
shall not be subject to any Lien other than those permitted under
Section 6.02, (iii) each of such Security Documents shall, except as
otherwise provided or agreed to by the Administrative Agent and the Borrower,
have been filed and recorded in the recording office as specified on Schedule
3.17(c) (or a lender’s title insurance policy, in form and substance reasonably
acceptable to the Collateral Agent, insuring such Security Document as a first
lien on such Mortgaged Property (subject to any Lien permitted by
Section 6.02) shall have been received by the Collateral Agent) and, in
connection therewith, the Collateral Agent shall have received evidence reasonably
satisfactory to it of each such filing and recordation and (iv) the
Collateral Agent shall have received such other documents, including a policy
or policies (or binding commitments therefor) of title insurance issued by a
nationally recognized title insurance company, together with such endorsements,
coinsurance and reinsurance as may be reasonably requested by the Collateral
Agent and the Lenders, insuring the Mortgages as valid first liens on the
Mortgaged Properties, free of Liens other than those permitted under
Section 6.02, together with such surveys, as reasonably requested by the
Collateral Agent.

 

(h)   The Administrative Agent shall have received
a certificate as to coverage under the insurance policies required by
Section 5.02.

 

68

 

(i)   The Acquisition shall be consummated
substantially simultaneously with the initial funding of Loans on the Closing
Date and the Administrative Agent shall be satisfied that the Merger will be
consummated on the Closing Date immediately after the initial funding of the
Loans, in each case in accordance with and on the terms described in the
Purchase Agreement, and no material provision or condition of the Purchase
Agreement shall have been waived, amended, supplemented or otherwise modified
in a manner that is adverse in any material respect to the interests of the
Lenders without the prior written consent of the Administrative Agent. The
Company, as the survivor of the Merger, shall execute this Agreement in order
to acknowledge its obligations as the Borrower. The Administrative Agent shall
have received copies of the Purchase Agreement and all certificates, opinions
and other documents delivered thereunder, certified by a Financial Officer as
being complete and correct.

 

(j)   The Investors shall have made the Equity
Contribution in an aggregate amount not less than $250,000,000. The Second Lien
Credit Agreement shall have been executed and delivered by the parties thereto,
the conditions thereunder shall be satisfied and the Borrower shall have
received gross cash proceeds of not less than $150,000,000 from the borrowing
of loans thereunder.

 

(k)   All amounts due or outstanding in respect of
the Existing Debt shall have been (or substantially simultaneously with the
initial funding of the Loans on the Closing Date shall be) paid in full, all
commitments (if any) in respect thereof terminated and all guarantees (if any)
thereof and security (if any) therefor discharged and released. After giving
effect to the Transactions, Holdings and its Subsidiaries shall have
outstanding no indebtedness or Disqualified Stock other than
(i) Indebtedness under the Loan Documents and under the Second Lien Credit
Agreement, (ii) Capital Lease Obligations permitted under the Purchase
Agreement and (iii) Indebtedness permitted by Section 6.01.

 

(l)   The Administrative Agent shall have received
a certificate from the chief financial officer (or officer with reasonably
equivalent responsibilities) of Holdings certifying that Holdings and its
subsidiaries, on a consolidated basis after giving effect to the Transactions,
are Solvent as of the Closing Date.

 

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

 

(n)   The Administrative Agent shall have received
unaudited consolidated balance sheets and related statements of income,
stockholders’ equity and cash flows of the Company for each fiscal quarter
ended after March 31, 2006, and at least 45 days prior to the Closing
Date, all certified by one of its Financial Officers as fairly presenting in
all material respects the financial condition and results of operations of the
Company and its consolidated subsidiaries on a consolidated basis in accordance
with GAAP consistently applied, subject to normal year-end audit adjustments
and the absence of footnotes.

 

69

 

(o)   The Administrative Agent shall have received
a pro forma consolidated balance sheet and related pro forma consolidated
statement of income and cash flows of the Borrower as of and for the
twelve-month period ending on the last day of the most recently completed
four-fiscal quarter period ended at least 45 days prior to the Closing Date,
prepared after giving effect to the Transactions as if the Transactions had
occurred as of such date (in the case of such balance sheet) or at the
beginning of such period (in the case of such other financial statements).

 

ARTICLE V

 

Affirmative Covenants

 

Each
of Holdings and the Borrower covenants and agrees with each Lender that until
the Commitments have been terminated and the principal of and interest on each
Loan, all Fees and all other expenses or amounts payable under any Loan
Document (including amounts drawn under Letters of Credit) shall have been paid
in full and all Letters of Credit have been canceled or have expired (or the
Borrower shall have provided L/C Backstop or made other arrangements reasonably
satisfactory to the Administrative Agent and the Issuing Bank with respect
thereto), each of Holdings and the Borrower will, and will cause each of their
Subsidiaries to:

 

SECTION 5.01. Existence; Compliance with Laws;
Businesses and Properties. (a) 
Do or cause to be done all things reasonably necessary to preserve,
renew and keep in full force and effect its legal existence under the laws of
its jurisdiction of organization, except as otherwise expressly permitted under
Section 6.05.

 

(b)   Other than as could not reasonably be
expected to have a Material Adverse Effect, (i) do or cause to be done all
things reasonably necessary to obtain, preserve, renew, extend and keep in full
force and effect the material rights, licenses, permits, franchises,
authorizations, patents, copyrights, trademarks and trade names necessary or
desirable to the conduct of its business, (ii) maintain and operate such
business in substantially the manner in which it is presently conducted and
operated, (iii) comply in all material respects with applicable laws,
rules, regulations and decrees and orders of any Governmental Authority
(including Environmental Laws and ERISA), whether now in effect or hereafter
enacted and (iv)  maintain and preserve all property necessary or
desirable to the conduct of such business and keep such property in good
repair, working order and condition and from time to time make, or cause to be
made, all needed repairs, renewals, additions, improvements and replacements
thereto necessary or desirable to the conduct of its business.

 

SECTION 5.02. Insurance. (a)  Except if the failure to do so could not
reasonably be expected to cause a Material Adverse Effect, keep its insurable
properties adequately insured at all times by financially sound and reputable
insurers to such extent and against such risks, including fire and other risks
insured against by extended coverage, as is customary with companies in the same
or similar businesses operating in the same or similar locations.

 

70

 

(b)   Cause all such policies covering any
Collateral to be endorsed or otherwise amended to include a customary lender’s
loss payable endorsement, in form and substance reasonably satisfactory to the
Administrative Agent and the Collateral Agent, to the extent available on
commercially reasonable terms, cause each such policy to provide that it shall
not be canceled, modified or not renewed (i) by reason of nonpayment of
premium unless not less than 10 days’ prior written notice thereof is
given by the insurer to the Administrative Agent and the Collateral Agent
(giving the Administrative Agent and the Collateral Agent the right to cure defaults
in the payment of premiums) or (ii) for any other reason unless not less
than 30 days’ prior written notice thereof is given by the insurer to the
Administrative Agent and the Collateral Agent. Upon the reasonable request of
the Administrative Agent or the Collateral Agent, deliver to the Administrative
Agent and the Collateral Agent, prior to the cancellation, modification or
nonrenewal of any such policy of insurance, a copy of a renewal or replacement
policy (or other evidence of renewal of a policy previously delivered to the
Administrative Agent and the Collateral Agent) together with evidence
reasonably satisfactory to the Administrative Agent and the Collateral Agent of
payment of the premium therefor.

 

(c)   Purchase Federal Emergency Management Agency
Standard Flood Hazard Determination Forms for each property on which
improvements are located, provide such forms to the Collateral Agent, and if at
any time the area in which any Mortgaged Property is located is designated a “flood
hazard area” in any Flood Insurance Rate Map published by the Federal Emergency
Management Agency (or any successor agency), obtain (to the extent available on
commercially reasonable terms) flood insurance in such total amount as the
Administrative Agent, may from time to time reasonably require, and otherwise
comply with the National Flood Insurance Program as set forth in the Flood
Disaster Protection Act of 1973, as it may be amended from time to time.

 

SECTION 5.03. Taxes. Pay and
discharge when due all taxes, assessments and governmental charges or levies
imposed upon it or upon its income or profits or in respect of its property,
before the same shall become overdue by more than 30 days; provided, however,
that such payment and discharge shall not be required with respect to any such
tax, assessment, charge or levy (i) so long as the validity or amount
thereof is (A) being contested in good faith, (B) by appropriate
proceedings diligently conducted and (C) with respect to which adequate
reserves in accordance with GAAP have been established or (ii) with
respect to which the failure to make payment could not reasonably be expected
to have a Material Adverse Effect;

 

SECTION 5.04. Financial Statements, Reports, etc.
In the case of Holdings, furnish to the Administrative Agent (who will
distribute to each Lender):

 

(a)   within 120 days after the end of each
fiscal year, its consolidated balance sheet and related statements of income,
stockholders’ equity and cash flows showing the financial condition of Holdings
and its consolidated Subsidiaries as of the close of such fiscal year and the
results of its operations and the operations of such persons during such year,
together with comparative figures for the immediately preceding fiscal year,
all in reasonable detail and prepared in accordance with GAAP, all audited by
KPMG LLP or 

 

71

 

other independent public accountants of recognized
national standing and accompanied by an opinion of such accountants (which
opinion shall be without a “going concern” or like qualification or exception
and without any qualification or exception as to the scope of such audit) to
the effect that such consolidated financial statements fairly present the
financial condition and results of operations of Holdings and its consolidated
Subsidiaries on a consolidated basis in accordance with GAAP;

 

(b)   within 60 days after the end of each of
the first three fiscal quarters of each fiscal year, its consolidated balance
sheet and related statements of income, stockholders’ equity and cash flows
showing the financial condition of Holdings and its consolidated Subsidiaries
as of the close of such fiscal quarter and the results of its operations and
the operations of such persons during such fiscal quarter and the then elapsed
portion of the fiscal year, and comparative figures for the same periods in the
immediately preceding fiscal year, all certified by one of its Financial
Officers as fairly presenting in all material respects the financial condition and
results of operations of Holdings and its consolidated Subsidiaries on a
consolidated basis in accordance with GAAP, subject to normal year-end audit
adjustments and the absence of footnotes;

 

(c)   concurrently with any delivery of financial
statements under paragraph (a) or (b) above, a certificate of a Financial
Officer of Holdings (i) certifying that to such Financial Officer’s
knowledge no Event of Default or Default has occurred or, if such an Event of
Default or Default has occurred, reasonably specifying the nature thereof and
(ii) setting forth computations in reasonable detail reasonably
satisfactory to the Administrative Agent demonstrating compliance with the
covenants contained in Sections 6.10, 6.11 and 6.12 and, in the case of a certificate
delivered with the financial statements required by paragraph (a) above
(commencing with the fiscal year ended December 31, 2007), setting forth
Holdings’ calculation of Excess Cash Flow; and concurrently with any delivery
of financial statements under paragraph (a) above, a certificate of the
accounting firm certifying that such accounting firm did not become aware of
any Event of Default under Sections 6.11 or 6.12 or, if such accounting
firm shall have become aware of such an Event of Default, specifying the nature
thereof (which certificate, is limited to such accounting matters and may
disclaim responsibility for legal interpretations);

 

(d)   within 60 days after the commencement
of each fiscal year of Holdings, a detailed consolidated budget for such fiscal
year (including a projected consolidated balance sheet and related statements
of projected operations and cash flows as of the end of and for such fiscal
year and setting forth the material assumptions used for purposes of preparing
such budget);

 

(e)   promptly after the same become publicly
available, copies of all periodic 10Q and 10K filings, which shall satisfy the
Borrower’s obligations under Sections 5.01(a) and (b) above (if containing
the items required thereby);

 

(f)   after the request by any Lender, all
documentation and other information that such Lender reasonably requests in
order to comply with its ongoing obligations under

 

72

 

applicable “know your customer” and anti-money
laundering rules and regulations, including the USA PATRIOT Act;

 

(g)   concurrently with the delivery of the
certificate pursuant to clause (c) above (or on such later date on which a
distribution may be made), a certificate of a Financial Officer of Holdings
setting forth computations of the amount of any Tax Distribution or Specified
Tax Payment made during the period covered thereby;

 

(h)   concurrently with the delivery of the
certificate delivered pursuant to clause (c) above with respect to the end of a
fiscal year, a certificate of a Financial Officer of Holdings setting forth the
amount of Capital Expenditures during the relevant fiscal year, any Rollover
Amount or Carryback Amount and the base amount for the next succeeding Fiscal
Year;

 

(i)   promptly, from time to time, such other
information regarding the operations, business affairs and financial condition
of Holdings, the Borrower or any Subsidiary, or compliance with the terms of
any Loan Document, as the Administrative Agent or any Lender may reasonably request;
and

 

(j)   Concurrently with the delivery of the
certificate delivered pursuant to clause (c) above with respect to the end of a
fiscal year, the Borrower shall deliver to the Collateral Agent a certificate
executed by a Responsible Officer of the Borrower attaching updated versions of
the Schedules (other than Schedule IV) to the First Lien Guarantee and
Collateral Agreement or in the alternative, setting forth any and all changes
to (or confirming that there has been no change in) the information set forth
in or contemplated by such Schedules since the date of the most recent
certificate delivered pursuant to this paragraph (j).

 

SECTION 5.05. Litigation and Other Notices.
Promptly upon any Responsible Officer of Holdings, the Borrower or any Subsidiary
becoming aware thereof, furnish to the Administrative Agent, the Issuing Bank
and each Lender notice of the following:

 

(a)   the occurrence of any Event of Default or
Default;

 

(b)   the filing or commencement of any action,
suit or proceeding, whether at law or in equity or by or before any
Governmental Authority, against the Borrower or any Affiliate thereof that
could reasonably be expected to result in a Material Adverse Effect;

 

(c)   the occurrence of any ERISA Event that,
alone or together with any other ERISA Events that have occurred, that has
resulted in or could reasonably be expected to result in a Material Adverse
Effect; and

 

(d)   the occurrence of any other event that has
resulted in, or could reasonably be expected to result in, a Material Adverse
Effect.

 

SECTION 5.06. Information Regarding Collateral.
Furnish to the Administrative Agent notice of any change (i) in any Loan
Party’s legal name, (ii) in the jurisdiction of organization or formation
of any Loan Party or (iii) in any Loan Party’s 

 

73

 

identity or corporate structure. Holdings and the
Borrower also agree to notify the Administrative Agent if any material portion
of the Collateral is damaged or destroyed.

 

SECTION 5.07. Maintaining Records; Access to
Properties and Inspections; Maintenance of Ratings. (a)  Keep proper books of record and account in
which full, true and correct entries in conformity with GAAP are made. Permit
any representatives designated by the Administrative Agent (or any Lender if
accompanying the Administrative Agent) to visit and inspect during normal
business hours the financial records and the properties of Holdings, the
Borrower or the Subsidiaries upon reasonable advance notice, and to make
extracts from and copies of such financial records, and permit any such
representatives to discuss the affairs, finances and condition of such person
with the officers thereof and independent accountants therefor; provided, that the Administrative Agent
shall give the Borrower an opportunity to participate in any discussions with
its accountants; provided, further, that in the absence of the
existence of an Event of Default, the Administrative Agent shall not exercise
its rights under this Section 5.07 more often than two times during any
fiscal year and only one such time shall be at the Borrower’s expense.

 

SECTION 5.08. Use of Proceeds. The
proceeds of the Term Loans, together with the Equity Contribution and loans
under the Second Lien Credit Agreement, shall be used solely to pay the cash
purchase price of the Acquisition, to repay the Existing Debt and to pay
related fees and expenses. The proceeds of the Revolving Loans and Swingline
Loans, shall be used for working capital and general corporate purposes (including
Permitted Acquisitions); provided,
however, that up to $10,000,000
of the Revolving Loans may be drawn on the Closing Date and used to pay a
distribution to the Investors to fund a portion of the cash purchase price of
the Acquisition, to repay a portion of the Existing Debt and to pay related
fees and expenses. The Letters of Credit shall be used solely to support
obligations of the Borrower and the Subsidiaries incurred for working capital
and general corporate purposes (including Permitted Acquisitions and Capital
Expenditures).

 

SECTION 5.09. Further Assurances.
(a)  From time to time duly authorize,
execute and deliver, or cause to be duly authorized, executed and delivered,
such additional instruments, certificates, financing statements, agreements or
documents, and take all reasonable actions (including filing UCC and other
financing statements but subject to the limitations set forth in the Security
Documents), as the Administrative Agent or the Collateral Agent may reasonably
request, for the purposes of perfecting the rights of the Administrative Agent,
the Collateral Agent and the Secured Parties with respect to the Collateral (or
with respect to any additions thereto or replacements or proceeds or products
thereof or with respect to any other property or assets hereafter acquired by
Holdings, the Borrower or any Subsidiary which may be deemed to be part of the
Collateral) pursuant hereto or thereto. Upon the exercise by the Administrative
Agent, the Collateral Agent or any Lender of any power, right, privilege or
remedy pursuant to this Agreement or the other Loan Documents which requires
any consent, approval, recording, qualification or authorization of any
Governmental Authority, each of Holdings and the Borrower will execute and
deliver, or will cause the execution and delivery of, all applications,
certifications, instruments and other documents and papers 

 

74

 

that the Administrative Agent, the Collateral Agent or
such Lender may reasonably be required to obtain from Holdings, the Borrower or
any other Loan Party for such governmental consent, approval, recording,
qualification or authorization.

 

(b)   With respect to any assets acquired by any
Loan Party after the Closing Date of the type constituting Collateral under the
Guarantee and Collateral Agreement and as to which the Collateral Agent, for
the benefit of the Secured Parties, does not have a perfected security
interest, on or prior to the date of delivery of the certificate under Section 5.04(c)
following the date of such acquisition (i) execute and deliver to the
Administrative Agent and the Collateral Agent such amendments to the Guarantee
and Collateral Agreement or such other Security Documents as the Collateral
Agent deems necessary to grant to the Collateral Agent, for the benefit of the
Secured Parties, a security interest in such assets and (ii) take all actions
necessary to grant to, or continue on behalf of, the Collateral Agent, for the
benefit of the Secured Parties, a perfected security interest in such assets
(subject only to Liens permitted under Section 6.02), including the filing of
UCC financing statements in such jurisdictions as may be required by the
Guarantee and Collateral Agreement or as may be reasonably requested by the
Administrative Agent or the Collateral Agent.

 

(c)   With respect to any fee interest in any real
property (other than fee property of a Project Subsidiary prior to the time the
Permitted Project Debt is repaid in full) located in the United States with a
book value in excess of $5,000,000 (as reasonably estimated by the Borrower)
acquired after the Closing Date by any Loan Party (including as a result of a
Permitted Acquisition of a Person that owns such real property), within 60 days
following the date of such acquisition (i) execute and deliver a Mortgage
in favor of the Collateral Agent, for the benefit of the Secured Parties,
covering such real property and complying with the provisions herein and in the
Security Documents, (ii) provide the Secured Parties with title and
extended coverage insurance in an amount equal to the book value of such real
property, and if applicable, flood insurance, all in accordance with the
standards for deliveries contemplated on the Closing Date, (iii) if
requested by the Administrative Agent make available counsel reasonably
satisfactory to the Administrative Agent and the Collateral Agent to advise the
Administrative Agent and the Collateral Agent with respect to the form and
substance of the applicable Mortgage and (iv) deliver to the Administrative
Agent, upon the Administrative Agent’s request, a copy of any consultant’s
reports, environmental site assessments or other material documents, if any, in
the possession of the Borrower or any other Loan Party.

 

(d)   With respect to any Subsidiary (other than a
Foreign Subsidiary or a Project Subsidiary) created or acquired after the
Closing Date, and with respect to any Project Subsidiary upon payment in full
of all Permitted Project Debt of such Project Subsidiary, on or prior to the
date of delivery of the certificate under Section 5.04(c) following such
creation or the date of such acquisition, or payment, as the case may be
(i) execute and deliver to the Administrative Agent and the Collateral
Agent such amendments to the Guarantee and Collateral Agreement as the
Administrative Agent or the Collateral Agent deems necessary to grant to the
Collateral Agent, for the benefit of the Secured Parties, a valid, perfected
security interest in the Equity Interests in such new Subsidiary that are owned
by any of the Loan Parties, (ii) deliver to the Collateral Agent the
certificates, 

 

75

 

representing any of such Equity Interests that
constitute certificated securities, together with undated stock powers, in
blank, executed and delivered by a duly authorized officer of the pledgor and
(iii) cause such Subsidiary (A) to become a party to the Guarantee
and Collateral Agreement and each Intellectual Property Security Agreement and
(B) to take such actions necessary to grant to the Collateral Agent, for
the benefit of the Secured Parties, a perfected security interest in any assets
required to be Collateral pursuant to the Guarantee and Collateral Agreement
and each Intellectual Property Security Agreement with respect to such
Subsidiary, including, if applicable, the recording of instruments in the
United States Patent and Trademark Office and the United States Copyright
Office and the filing of UCC financing statements in such jurisdictions as may
be required by the Guarantee and Collateral Agreement, any applicable
Intellectual Property Security Agreement or as may be reasonably requested by
the Administrative Agent or the Collateral Agent.

 

(e)   With respect to any Equity Interests in any
Foreign Subsidiary or Project Subsidiary that are acquired after the Closing
Date by any Loan Party (including as a result of formation of a new Foreign
Subsidiary or Project Subsidiary), on or prior to the date of delivery of the
certificate under Section 5.04(c) following the date of such acquisition
(or, in the case of a Project Subsidiary where Equity Interests are or will be
subject to a Lien in favor of lenders of the Permitted Project Debt, upon
payment in full of all Permitted Project Debt of such Subsidiary)
(i) execute and deliver to the Administrative Agent and the Collateral
Agent such amendments to the Guarantee and Collateral Agreement as the
Administrative Agent or the Collateral Agent reasonably deems necessary in
order to grant to the Collateral Agent, for the benefit of the Secured Parties,
a perfected security interest (subject only to Liens permitted under
Section 6.02) in the Equity Interests in such Foreign Subsidiary or such
Project Subsidiary that are owned by the Loan Parties (provided, that in no event shall more than
65% of the total outstanding voting Equity Interests in any Foreign Subsidiary
be required to be so pledged) and (ii) deliver to the Collateral Agent any
certificates representing any such Equity Interests that constitute
certificated securities, together with undated stock powers, in blank, executed
and delivered by a duly authorized officer of the pledgor, as the case may be,
and take such other action as may be necessary to perfect the security interest
of the Collateral Agent thereon.

 

SECTION 5.10. Interest Rate Protection.
No later than the 120th day after the Closing Date, the Borrower shall enter
into, and for a minimum of two years after the Closing Date maintain,
Hedging Agreements reasonably acceptable to the Administrative Agent such that,
after giving effect thereto, at least 50% of the aggregate principal amount of
its consolidated funded long-term Indebtedness is effectively subject to a
fixed or maximum interest rate.

 

ARTICLE VI

 

Negative Covenants

 

Each
of Holdings and the Borrower covenants and agrees that, until the Commitments
have been terminated and the principal of and interest on each Loan, all 

 

76

 

Fees
and all other expenses or amounts payable under any Loan Document (including
amounts drawn under Letters of Credit) have been paid in full and all Letters
of Credit have been canceled or have expired (or the Borrower shall have
provided L/C Backstop or made other arrangements reasonably satisfactory to the
Administrative Agent and the Issuing Bank with respect thereto), neither
Holdings nor the Borrower will, nor will they cause or permit any of their
Subsidiaries to:

 

SECTION 6.01. Indebtedness. Incur,
create, assume or permit to exist any Indebtedness, except:

 

(a) Indebtedness existing
on the Closing Date and set forth in Schedule 6.01 and any Permitted
Refinancing thereof;

 

(b) Indebtedness created
hereunder and under the other Loan Documents;

 

(c) Indebtedness under
the Second Lien Credit Agreement and the related loan documents in an aggregate
principal amount of up to $150,000,000 at any time outstanding, less the amount
of any principal payments made thereon after the Closing Date, and any
Permitted Refinancing in respect thereof;

 

(d) intercompany
Indebtedness of Holdings and its Subsidiaries to extent permitted by
Section 6.04;

 

(e) Indebtedness of the
Borrower or any of its Subsidiaries incurred to finance the acquisition,
construction or improvement of any asset, and any Permitted Refinancing
thereof; provided, that
(i) such Indebtedness (other than Permitted Refinancing) is incurred prior
to or within 270 days after such acquisition or the completion of such
construction or improvement and (ii) the aggregate principal amount of
Indebtedness permitted by this Section 6.01(e), when combined with the
aggregate principal amount of all Capital Lease Obligations incurred pursuant
to Section 6.01(f), shall not exceed $25,000,000 at any time outstanding;

 

(f) Capital Lease
Obligations in an aggregate principal amount, when combined with the aggregate
principal amount of all Indebtedness incurred pursuant to Section 6.01(e),
not in excess of $25,000,000 at any time outstanding;

 

(g) Indebtedness of the
Borrower and the Subsidiaries (A) assumed in connection with any Permitted
Acquisition (so long as such Indebtedness is not incurred in contemplation of
such Permitted Acquisition) or (B) owed to the seller of any property acquired
in a Permitted Acquisition on an unsecured, subordinated basis (which subordination
shall be on terms reasonably acceptable to the Administrative Agent) and, in
each case any Permitted Refinancing in respect of the foregoing; provided, that in each case, (i) such
Indebtedness is unsecured (other than as permitted by Section 6.02(d)),
(ii) both immediately prior and after giving effect thereto, (1) no
Default shall exist or result therefrom and (2) Holdings and its
Subsidiaries will be in Pro Forma Compliance with the covenants set forth in
Sections 6.11 and 6.12;

 

77

 

(h) unsecured
Indebtedness (“Permitted
Senior Debt”) of the Borrower; provided,
that (i) the aggregate principal amount of Indebtedness permitted by this
Section 6.01 (h) at any time outstanding shall not exceed
$100,000,000 (ii) both immediately prior and after giving effect to
incurring any such Indebtedness, (1) no Default shall exist or result
therefrom and (2) Holdings and its Subsidiaries will be in Pro Forma
Compliance with the covenants set forth in Sections 6.11 and 6.12, (iii) such
Indebtedness does not mature prior to the date 91 days after the Term Loan
Maturity Date, and does not require any scheduled amortization or other
scheduled payments of principal prior to the Term Loan Maturity Date (it being
understood that such Indebtedness may have mandatory prepayment, repurchase or
redemption provisions satisfying the requirement of clause (iv) hereof)
and (iv) such Indebtedness has terms (other than interest rate and
redemption premiums), taken as a whole, that are not materially less favorable
to the Borrower than the terms of senior unsecured debt securities of
comparable issuers issued in the capital markets;

 

(i) unsecured
subordinated Indebtedness (“Permitted Subordinated Debt”) of the Borrower; provided, that (i) the aggregate
principal amount of Indebtedness permitted by this Section 6.01(i) at any
time outstanding shall not exceed $150,000,000 (ii) both immediately prior
and after giving effect to incurring any such Indebtedness, (1) no Default
shall exist or result therefrom and (2) Holdings and the Subsidiaries will
be in Pro Forma Compliance with the covenants set forth in Sections 6.11
and 6.12, (iii) such Indebtedness does not mature prior to the date
91 days after the Term Loan Maturity Date and does not require any scheduled
amortization or other scheduled payments of principal prior to the Term Loan
Maturity Date (it being understood that such Indebtedness may have mandatory
prepayment, repurchase or redemptions provisions satisfying the requirement of
clause (iv) hereof), (iv) such Indebtedness has terms (other than
interest rate and redemption premiums), taken as a whole, that are not
materially less favorable to the Borrower than the terms of the senior
subordinated debt securities of comparable issuers issued in the capital
markets and (v) such Indebtedness (and any Guarantees thereof) are
subordinated to the Obligations (and any refinancing thereof) on terms no less
favorable to the Lenders than subordination terms customary for senior
subordinated debt securities of comparable issuers issued in the capital
markets or on terms reasonably acceptable to the Administrative Agent;

 

(j) Guarantees by
Holdings, the Borrower or any of their Subsidiaries of Indebtedness (other than
Permitted Project Debt) of the Borrower or any other Subsidiary otherwise
permitted hereunder; provided,
that (x) no guarantee of any Permitted Subordinated Debt, Permitted Senior Debt
or other subordinated Indebtedness that is Material Indebtedness (or any
Permitted Refinancing thereof) by any Subsidiary that is not a Loan Party shall
be permitted unless such Subsidiary shall have also provided a Guarantee of the
Obligations substantially on the terms set forth in the Guarantee and
Collateral Agreement and (y) if the Indebtedness being Guaranteed is
subordinated to the Obligations, such Guarantee shall be subordinated to the
Guarantee of the Obligations on terms at least as 

 

78

 

favorable to the Lenders
as those contained in the subordination of such Indebtedness;

 

(k) Indebtedness incurred
by Holdings and its Subsidiaries representing deferred compensation to
directors, officers, members of management, employees or consultants of
Holdings and its Subsidiaries incurred in the ordinary course of business;

 

(l) Indebtedness
consisting of promissory notes issued by Holdings or any of its Subsidiaries to
future, present or former directors, officers, members of management, employees
or consultants of Holdings or any of its Subsidiaries or their respective
estates, heirs, family members, spouses or former spouses to finance the
purchase or redemption of Equity Interests of Holdings permitted by Section
6.06;

 

(m) Indebtedness incurred
by Holdings or any of its Subsidiaries in a Permitted Acquisition or an Asset
Sale under agreements providing for indemnification, the adjustment of the
purchase price or similar adjustments;

 

(n) Indebtedness
consisting of obligations of Holdings or any of its Subsidiaries under deferred
compensation or other similar arrangements incurred by such person in
connection with the Transaction and Permitted Acquisitions;

 

(o) cash management
obligations and Indebtedness incurred by Holdings or any of its Subsidiaries in
respect of netting services, overdraft protections and similar arrangements in
each case in connection with cash management and deposit accounts;

 

(p) Indebtedness
consisting of (i) the financing of insurance premiums or (ii) take-or-pay
obligations of the Borrower or any of its Subsidiaries contained in supply
arrangements, in each case, in the ordinary course of business;

 

(q) Indebtedness incurred
by Holdings and its Subsidiaries constituting reimbursement obligations with
respect to letters of credit issued in the ordinary course of business in
respect of workers compensation claims, unemployment insurance, health,
disability or other employee benefits or property, casualty or liability
insurance or self-insurance or other Indebtedness with respect to such similar
reimbursement-type obligations; provided,
that upon the drawing of such letters of credit or the incurrence of such
Indebtedness, such obligations are reimbursed within 30 days following such
drawing or incurrence;

 

(r) obligations in
respect of surety, stay, customs and appeal bonds, performance bonds,
performance and completion guarantees and other obligations of a like nature
provided by the Borrower or any of its Subsidiaries or obligations in respect
of letters of credit related thereto, in each case in the ordinary course of
business; provided, that upon the
drawing of such letters of credit or the incurrence of such Indebtedness, such
obligations are reimbursed within 30 days following such drawing or incurrence;

 

79

 

(s) Indebtedness in
respect of Hedging Agreements entered into in the ordinary course of business
and not for speculative purposes;

 

(t) Indebtedness in
respect of any bankers’ acceptances supporting trade payables, warehouse
receipts or similar facilities entered into the ordinary course of business;

 

(u) Indebtedness (other
than for borrowed money) subject to Liens permitted under Section 6.02;

 

(v) other Indebtedness of
the Borrower or any of its Subsidiaries in an aggregate principal amount not
exceeding $25,000,000 at any time outstanding;

 

(w) Permitted Project
Debt; and

 

(x) all premiums (if
any), interest (including post-petition interest), fees, expenses, charges and
additional or contingent interest on obligations described in clauses (a)
through (w) above.

 

SECTION 6.02. Liens. Create, incur,
assume or permit to exist any Lien on any property or any income or revenues or
rights in respect of any thereof now owned or hereafter acquired by it, except:

 

(a) Liens on property of
the Borrower and the Subsidiaries existing on the Closing Date and set forth in
Schedule 6.02 and modifications, refinancings, extensions, renewals and
replacements thereof; provided,
that (i) the Lien does not extend to any additional property other than
(A) after-acquired property that is affixed or incorporated into the
property covered by such Lien or financed by Indebtedness permitted under
Section 6.01, and (B) proceeds and products thereof and (ii) the
modification, refinancing, extension, renewal and replacement thereof of the
obligations secured or benefited by such Liens (if such obligations constitute
Indebtedness) is permitted by Section 6.01;

 

(b) any Lien created
under the Loan Documents;

 

(c) Second Priority
Liens;

 

(d) any Lien existing on
any property acquired by the Borrower or any of its Subsidiaries after the Closing
Date (if such Lien existed prior to the acquisition of such asset) or existing
on any property or assets of any person that becomes a Subsidiary after the
Closing Date prior to the time such person becomes a Subsidiary, as the case
may be and any modification, refinancing, extension, renewal and replacement
thereof; provided, that
(i) such Lien is not created in contemplation of or in connection with
such acquisition or such person becoming a Subsidiary, (ii) in the case of
Liens securing purchase money Indebtedness or Capital Lease Obligations, such
Lien does not apply to any other property or assets of Holdings, the Borrower
or any Subsidiary (other than the proceeds or products thereof and
after-acquired property subjected to a Lien pursuant to terms 

 

80

 

existing at the time of
such acquisition, it being understood that such requirement shall not be
permitted to apply to any property to which such requirement would not have
applied but for such acquisition); provided,
that individual financings otherwise permitted to be secured hereunder provided
by one person (or its affiliates) may be cross collateralized to other such
financings provided by such person (or its affiliates), (iii) in the case of
Liens securing Indebtedness other than purchase money Indebtedness or
Capitalized Lease Obligations, such Liens do not extend to the property of any
person other than the person acquired or formed to make such acquisition and
the subsidiaries of such person and (iv) the Indebtedness secured thereby (or,
as applicable, any modifications, replacements, renewals or extensions thereof)
is permitted under Section 6.01;

 

(e) Liens for taxes
(i) which are not yet overdue for a period of more than 30 days, or,
(ii) if more than 30 days overdue (x) so long as the validity or
amount thereof is (A) being contested in good faith, (B) by
appropriate proceedings diligently conducted and (C) with respect to which
adequate reserves in accordance with GAAP have been established or (y) with
respect to which the failure to make payment could not reasonably be expected
to have a Material Adverse Effect;

 

(f) carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s, landlords, construction
contractors or other like Liens arising in the ordinary course of business and
securing obligations which are not overdue for a period of more than 30 days,
or, if more than 30 days overdue, (i) which are being contested in good
faith and by appropriate proceedings diligently conducted, if adequate reserves
with respect thereto are maintained on the books of the applicable person in
accordance with GAAP or (ii) with respect to which the failure to make
payment could not reasonably be expected to have a Material Adverse Effect;

 

(g) (i) Liens incurred
in the ordinary course of business in compliance with workmen’s compensation,
unemployment insurance and other social security laws or regulations,
(ii) Liens incurred in the ordinary course of business securing insurance
premiums or reimbursement obligations under insurance policies or (iii)
obligations in respect of letters of credit or bank guarantees that have been
posted by Holdings or any of its Subsidiaries to support the payment of the
items set forth in clauses (i) and (ii) of this Section 6.02(g);

 

(h) (i) deposits to
secure the performance of bids, trade contracts (other than Indebtedness for
borrowed money), leases, statutory obligations, surety, stay, customs and
appeal bonds, performance bonds, performance and completion guarantees and other
obligations of a like nature incurred in the ordinary course of business
(including Hedging Agreements) and (ii) obligations in respect of letters of
credit or bank guarantees that have been posted by the Borrower or any of its
Subsidiaries to support the payment of items set forth in clause (i) of this
Section 6.02(h);

 

81

 

(i) zoning restrictions,
easements, rights-of-way, restrictions on use of real property and other
similar encumbrances incurred in the ordinary course of business which, in the
aggregate, are not substantial in amount and do not materially detract from the
value of the property subject thereto or interfere with the ordinary conduct of
the business of Holdings or any of its Subsidiaries;

 

(j) purchase money
security interests in property acquired (or, in the case of improvements,
constructed) by the Borrower or any Subsidiary; provided, that (i) such security interests secure
Indebtedness permitted by Section 6.01, (ii) such security interests
are incurred, and the Indebtedness secured thereby is created, within
270 days after such acquisition (or construction), and (iii) such
security interests do not apply to any other property or assets of the Borrower
or any Subsidiary; provided, that
individual financings otherwise permitted to be secured hereunder provided by
one person (or its affiliates) may be cross collateralized to other such
financings provided by such person (or its affiliates);

 

(k) judgment Liens
securing judgments not constituting an Event of Default under Article VII;

 

(l) any interest or title
of a lessor or sublessor under any lease entered into by the Borrower or any of
its Subsidiaries in the ordinary course of business and covering only the
assets so leased and any Liens of such lessor’s or sublessor’s interest or
title;

 

(m) Liens (i) on
cash deposits and other funds maintained with a depositary institution, in each
case arising in the ordinary course of business by virtue of any statutory or
common law provision relating to banker’s liens, (ii) attaching to
commodity trading accounts or other brokerage accounts incurred in the ordinary
course of business, (iii) in favor of a banking institution arising as a matter
of law encumbering deposits (including the right of set-off) and which are
within the general parameters customary in the banking industry, (iv) relating
to a pooled deposit or sweep accounts of Holdings or any of its Subsidiaries to
permit satisfaction of overdraft or similar obligations incurred in the ordinary
course of business of such person or (v) relating to purchase orders and other
similar agreements entered into in the ordinary course of business;

 

(n) (i) leases,
subleases, licenses or sublicenses granted to any other person in the ordinary
course of business and (ii) the rights reserved or vested in any person by
the terms of any lease, license, franchise, grant or permit held by Holdings or
any of its Subsidiaries or by a statutory provision to terminate any such
lease, license, franchise, grant or permit or to require periodic payments as a
condition to the continuance thereof;

 

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

 

82

 

(p) Liens (i) (A) on
advances of cash or Permitted Investments in favor of the seller of any
property to be acquired in an Investment permitted pursuant to Section 6.04 to
be applied against the purchase price for such Investment, and (B) consisting
of an agreement to dispose of any property in an Asset Sale permitted under
Section 6.05, in each case, solely to the extent such Investment or Asset
Sale, as the case may be, would have been permitted on the date of the creation
of such Lien and (ii) on cash earnest money deposits made by Holdings or
any of its Subsidiaries in connection with any letter of intent or purchase
agreement permitted hereunder;

 

(q) Liens in favor of the
Borrower or any Subsidiary securing Indebtedness permitted under Section
6.04(a) or other obligations (other than Indebtedness) owed by the Borrower or
any of its Subsidiaries to the Borrower or any of its other Subsidiaries;

 

(r) Liens arising from
precautionary UCC financing statement filings (or similar filings under
applicable Law) regarding leases entered into by the Borrower or any of its
Subsidiaries in the ordinary course of business;

 

(s) Liens arising out of
conditional sale, title retention, consignment or similar arrangements for sale
of goods entered into by the Borrower or any of its Subsidiaries in the
ordinary course or business not prohibited by this Agreement;

 

(t) Liens on assets of
Project Subsidiaries securing Permitted Project Debt; and

 

(u) other Liens securing
Indebtedness or other obligations outstanding in an aggregate principal amount
not to exceed $15,000,000.

 

SECTION 6.03. Sale and Lease-Back Transactions.
Enter into any arrangement, directly or indirectly, with any person whereby it
shall sell or transfer any property, real or personal, used or useful in its
business, whether now owned or hereafter acquired, and thereafter rent or lease
such property or other property which it intends to use for substantially the
same purpose or purposes as the property being sold or transferred unless
(a) the sale or transfer of such property is permitted by Section 6.05 and
(b) any Capital Lease Obligations, Guarantees or Liens arising in
connection therewith are permitted by Sections 6.01 and 6.02, as
applicable.

 

SECTION 6.04. Investments, Loans and Advances.
Purchase, hold or acquire any Equity Interests or evidences of indebtedness of,
make or permit to exist any loans or advances to, or make or permit to exist
any investment in any other person, or purchase or otherwise acquire all or
substantially all the assets or business of any other person or assets
constituting a business unit, line of business or division of another person
(collectively, an “Investment”), except:

 

(a) Investments by Holdings,
the Borrower and the Subsidiaries in Holdings, the Borrower and the
Subsidiaries; provided, that
(i) the aggregate amount of Investments made after the Closing Date by
Loan Parties in 

 

83

 

Subsidiaries of Holdings
(other than D&W Railroad, LLC, so long as it is not a wholly-owned
Subsidiary) that are not Loan Parties (determined without regard to any
write-downs or write-offs of such Investments) shall not exceed $5,000,000 at
any time outstanding and (ii) Investments by Holdings and its Subsidiaries
in D&W Railroad, LLC may not exceed the amounts required to be
contributed by the Borrower to D&W Railroad, LLC pursuant to
Section 3.01(b) of the Limited Liability Company Agreement of D&W
Railroad, LLC dated as of December 20, 2005 as in effect on the date
hereof, other than any contributions used to materially extend the rail line.

 

(b) Investment in assets
that were Permitted Investments at the time made;

 

(c) Investments received
in connection with the bankruptcy or reorganization of, or settlement of
delinquent accounts or other disputes with, any person, in each case in the
ordinary course of business and upon foreclosure with respect to any secured
Investment or other transfer of title with respect to any secured Investment;

 

(d) Holdings and its
Subsidiaries may make loans and advances in the ordinary course of business to
their respective directors, officers, members of management, employees and
consultants in an aggregate principal amount at any time outstanding
(determined without regard to any write-downs or write-offs of such loans and
advances) not to exceed $5,000,000;

 

(e) the Borrower and the
Subsidiaries may enter into Hedging Agreements that (i) are required by
Section 5.10 or (ii) are not speculative in nature and are entered
into to hedge or mitigate risks to which the Borrower or a Subsidiary is
exposed in the conduct of its business;

 

(f) Permitted
Acquisitions;

 

(g) Investments
consisting of non-cash consideration received from an Asset Sale in compliance
with Section 6.05;

 

(h) Investments
consisting of extensions of credit in the nature of accounts receivable or
notes receivable arising from the grant of trade credit in the ordinary course
of business, and Investments received in satisfaction or partial satisfaction
thereof from financially troubled account debtors and other credits to
suppliers in the ordinary course of business;

 

(i) Investments
consisting of Indebtedness, Liens, sale and leaseback transactions, fundamental
changes, Asset Sales and Restricted Payments permitted under Section 6.01,
6.02, 6.03, 6.05 and 6.06, respectively;

 

(j) Investments existing
or contemplated on the date hereof and set forth on Schedule 6.04 and any
modification, replacement, renewal or extension thereof; provided, that the amount of the original
Investment is not increased 

 

84

 

except by the terms of
such Investment or as otherwise permitted by this Section 6.04;

 

(k) loans and advances to
Holdings in lieu of, and not in excess of the amount of (after giving effect to
any other loans, advances or Restricted Payments in respect thereof),
Restricted Payments permitted to be made to Holdings in accordance with Section
6.06;

 

(l) advances of payroll
payments to employees in the ordinary course of business;

 

(m) Guarantees by
Holdings or any of its Subsidiaries of leases (other than Capital Lease
Obligations) entered into in the ordinary course of business;

 

(n) Investments in the
ordinary course consisting of endorsements for collection or deposit; and

 

(o) additional
Investments (net of any cash repayment of or return on such Investments
theretofore received) (i) not to exceed $15,000,000 in any fiscal year (provided, that to the extent that the
aggregate amount of Investments made by Holdings and its Subsidiaries in any
fiscal year pursuant to this Section 6.04(o) (x) is less than the amount
permitted for such fiscal year, the amount of such difference may be carried
forward and used to make Investments in the succeeding fiscal years, and (y) is
greater than the amount permitted for such fiscal year (including any amount
carried forward pursuant to clause (x)), an amount of up to 100% of the amount
otherwise permitted for the immediately succeeding fiscal year may be
reallocated to such current fiscal year) and (ii) up to an amount equal to the
sum of (A) the aggregate amount of Net Cash Proceeds from any issuance of
Equity Interests (other than Disqualified Equity Issuances) after the Closing
Date, plus (B) the Cumulative
Excess Cash Flow, but only to the extent the amounts described in clauses (A)
and (B) above are Not Otherwise Applied.

 

SECTION 6.05. Mergers, Consolidations, and Sales
of Assets. (a)  Merge into
or consolidate with any other person, or permit any other person to merge into
or consolidate with it, except:

 

(i) any Subsidiary
may merge into (x) the Borrower in a transaction in which the Borrower is
the surviving corporation or the surviving person shall expressly assume the
obligations of such Borrower in a manner reasonably acceptable to the
Administrative Agent, or (y) any one or more other Subsidiaries; provided, that when any such Subsidiary is
a Loan Party (A) a Loan Party shall be the continuing or surviving person or
(B) to the extent constituting an Investment, such Investment must be an
Investment in or Indebtedness permitted by Sections 6.04 and 6.01,
respectively;

 

(ii) the Merger;

 

85

 

(iii) Holdings may
merge with Parent so long as (A) the continuing or surviving entity is or
becomes a party to this Agreement and each other Loan Document to which
Holdings is a party (in which case the term “Holdings” shall be deemed to refer
to such surviving entity for all purposes of the Loan Documents) and
(B) no Default exists or would result therefrom;

 

(iv) so long as no
Event of Default exists or would result therefrom, the Borrower or any of its
Subsidiaries may merge with any other person in order to effect an Investment
permitted pursuant to Section 6.04; provided,
that (A) if the continuing or surviving person is a Subsidiary, such Subsidiary
shall have complied with the requirements of Section 5.09, (B) to the
extent constituting an Investment, such Investment must be permitted under
Section 6.04 and (C) if the Borrower is a party thereto, the Borrower
shall be the continuing or surviving person or the surviving person shall
expressly assume the obligations of the Borrower in a manner reasonably
acceptable to the Administrative Agent;

 

(v) the Borrower
and the Subsidiaries may consummate a merger or consolidation, the purpose of
which is to effect an Asset Sale permitted pursuant to Section 6.05(b); provided, that if the Borrower is a party
thereto, (A) the Borrower shall be the continuing or surviving person or
the surviving person shall expressly assume the obligations of the Borrower in
a manner reasonably acceptable to the Administrative Agent and (B) the
Borrower or such continuing or surviving person shall continue to be a direct
wholly owned Subsidiary of Holdings; and

 

(vi) the Borrower
may merge with one of its Subsidiaries for the purpose of effecting an
Investment permitted pursuant to Section 6.04; provided, that (A) the Borrower shall be the continuing
or surviving person or the surviving person shall expressly assume the
obligations of the Borrower in a manner reasonably acceptable to the
Administrative Agent, and (B) the Borrower or such surviving person shall
continue to be a direct wholly owned Subsidiary of Holdings.

 

(b)   Make any Asset Sale except:

 

(i) Asset Sales of
obsolete, used, surplus or worn out property, whether now owned or hereafter
acquired, or of property no longer used or useful in the conduct of business of
the Borrower and the Subsidiaries, in each case in the ordinary course of
business;

 

(ii) Asset Sales
of inventory in the ordinary course of business;

 

(iii) Asset Sales
to the extent that (A) such property is exchanged for credit against the
purchase price of similar replacement property or (B) 

 

86

 

the proceeds of such
Asset Sale are promptly applied to the purchase price of such replacement
property;

 

(iv) Asset Sales
by the Borrower or any of its Subsidiaries to the Borrower or any of its
Subsidiaries (in each case including any such Asset Sales effected pursuant to
a merger, liquidation or dissolution); provided,
that if the transferor of such property is a Loan Party (x) the transferee
thereof must either be the Borrower or a Subsidiary Guarantor or (y) to the extent
such transaction constitutes an Investment, such transaction is permitted under
Section 6.04;

 

(v) Asset Sales
permitted by Sections 6.04, 6.05(a) and 6.06 and Liens permitted by
Section 6.02;

 

(vi) Asset Sales
of Permitted Investments;

 

(vii) Asset Sales
of accounts receivable in connection with the collection or compromise thereof;

 

(viii) leases,
subleases, licenses or sublicenses of property in the ordinary course of
business and which do not materially interfere with the business of the
Borrower and the Subsidiaries;

 

(ix) transfers of
property subject to casualty or condemnation proceeding (including in lieu
thereof) upon receipt of the Net Cash Proceeds therefor;

 

(x) Asset Sales
not otherwise permitted under this Section 6.05(b); provided, that (A) at the time of such
Asset Sales, no Event of Default shall exist or would result therefrom,
(B) the aggregate book value of all property disposed of in reliance on
this clause (x) shall not exceed $10,000,000 in any fiscal year and (C) the
purchase price for such property (if in excess of $1,000,000) shall be paid to
the Borrower or such Subsidiary for not less than 75% cash consideration;

 

(xi) Asset Sales
in the ordinary course of business consisting of the abandonment of
intellectual property rights which, in the reasonable good faith determination
of the Borrower, are not material to the conduct of the business of the
Borrower and the Subsidiaries;

 

(xii) Asset Sales
of Investments in joint ventures to the extent required by, or made pursuant to
buy/sell arrangements between the joint venture parties set forth in, joint
venture arrangements and similar binding arrangements (x) in substantially the
form as such arrangements are in effect on the Closing Date or (y) to the
extent that the Net Cash Proceeds of such Asset Sale are applied to prepay the
Term Loans pursuant to Section 2.13(b);

 

87

 

(xiii) Asset Sales
by any Subsidiary of the Borrower of all or substantially all of its assets
(upon voluntary liquidation or otherwise) to the Borrower or to another
Subsidiary; provided, that
(x) if the transferor in such a transaction is a Guarantor, then the
transferee must either be the Borrower or a Guarantor or (y) to the extent
constituting an Investment, such Investment must be an Investment permitted by
Section 6.04;

 

(xiv) Asset Sales
of real property and related assets in the ordinary course of business in
connection with relocation activities for directors, officers, members of
management, employees or consultants of Holdings and the Subsidiaries;

 

(xv) voluntary
terminations of Hedging Agreements other than those required to be maintained
by this Agreement; and

 

(xvi) the
expiration of any option agreement in respect of real or personal property.

 

SECTION 6.06. Restricted Payments; Restrictive
Agreements. (a)  Declare
or make, or agree to declare or make, directly or indirectly, any Restricted
Payment, or incur any obligation (contingent or otherwise) to do so except:

 

(i)  any Subsidiary may declare and make
Restricted Payments ratably to its equity holders;

 

(ii)  Holdings and its Subsidiaries may declare and
make Restricted Payments payable solely in the Equity Interests (other than
Disqualified Equity Interests) of such person;

 

(iii)  so long as no Event of Default shall have
occurred and be continuing or would result therefrom, Holdings may make
Restricted Payments with the Net Cash Proceeds received from any issuance by
Holdings of its Equity Interests (other than Disqualified Equity Interests) to
the extent Not Otherwise Applied;

 

(iv)  on the Closing Date, Holdings and its
Subsidiaries may consummate the Transaction;

 

(v)  to the extent constituting Restricted
Payments, Holdings and its Subsidiaries may enter into transactions expressly
permitted by Section 6.05 or 6.07;

 

(vi)  repurchases of Equity Interests of Holdings
deemed to occur upon exercise of stock options or warrants if such Equity
Interests represent a portion of the exercise price of such options or
warrants;

 

(vii)  Holdings may pay for the repurchase,
retirement or other acquisition or retirement for value of Equity Interests of
Holdings (or may make Restricted Payments to Parent to enable it to repurchase,
retire or otherwise acquire or retire 

 

88

 

for value Equity
Interests of Parent) held by any future, present or former director, officer,
member of management, employee or consultant of Parent, Holdings or any of its
Subsidiaries (or the estate, heirs, family members, spouse or former spouse of
any of the foregoing); provided,
that the aggregate amount of Restricted Payments made under this
clause (vii) does not exceed in any fiscal year $5,000,000 (with unused
amounts in any fiscal year being carried over to the two succeeding fiscal
years subject to a maximum (without giving effect to the following proviso) of
$10,000,000 in any fiscal year)); and provided,
further, that such amount in any
fiscal year may be increased by an amount not to exceed (A) the Net Cash
Proceeds from the sale of Equity Interests (other than Disqualified Equity
Interests) of Holdings (or Parent) to directors, officers, members of
management, employees or consultants of Parent, Holdings or of its Subsidiaries
(or the estate, heirs, family members, spouse or former spouse of any of the
foregoing) that occurs after the Closing Date plus (B) the amount of any
cash bonuses otherwise payable to directors, officers, members of management,
employees or consultants of Parent, Holdings or any of its Subsidiaries in
connection with the Transaction that are foregone in return for the receipt of
Equity Interests of Holdings (or Parent) pursuant to a deferred compensation
plan of such person (provided,
that Consolidated EBITDA is reduced as a result thereof) plus (C) the cash
proceeds of key man life insurance policies received by Parent, Holdings, the
Borrower or its Subsidiaries after the Closing Date (provided, that Holdings may elect to apply all or any
portion of the aggregate increase contemplated by clauses (A), (B) and (C) above
in any fiscal year);

 

(viii)  the Borrower may make Restricted Payments to
Holdings (and Holdings may make Restricted Payments to Parent):

 

(A)          the proceeds of which shall be used by
Holdings (or Parent) to (1) pay operating expenses of Parent, Holdings and its
Subsidiaries incurred in the ordinary course of business and other corporate
overhead costs and expenses (including administrative, legal, accounting and
similar expenses provided by third parties), which are reasonable and customary
and incurred in the ordinary course of business, plus any reasonable and
customary indemnification claims made by directors, officers, members of
management, employees or consultants of Parent or Holdings each to the extent
attributable to the ownership or operations of the Borrower and the
Subsidiaries and (2) pay its franchise or similar taxes and other similar fees,
taxes and expenses required to maintain Holdings’ corporate existence;

 

(B)           the proceeds of which will be used by
Holdings (or Parent) to make Restricted Payments permitted by clause (vii)
above;

 

(C)           to finance any Investment permitted to be
made pursuant to Section 6.04; provided,
that (A) such Restricted Payment shall be made substantially concurrently with
the closing of such Investment and (B) Holdings (or Parent) shall, immediately
following the closing thereof,

 

89

 

cause (1) all
property acquired (whether assets or Equity Interests) to be contributed to the
Borrower or one of its Subsidiaries or (2) the merger (to the extent permitted
in Section 6.05) of the person formed or acquired into the Borrower or one of
its Subsidiaries in order to consummate such Permitted Acquisition;

 

(D)          the proceeds of which shall be used by
Holdings (or Parent) to pay fees and expenses related to any unsuccessful
equity or debt offering permitted by this Agreement;

 

(E)           the proceeds of which shall be used to
make cash payments in lieu of issuing fractional shares in connection with the
exercise of warrants, options or other securities convertible into or
exchangeable for Equity Interests of Holdings (or Parent) or its Subsidiaries;

 

(F)           the proceeds of which shall be used by
Holdings (or Parent) to pay customary salary, bonuses and other benefits
payable to officers and employees of Holdings (or Parent) to the extent such
salaries, bonuses and other benefits are directly attributable and reasonably
allocated to the operations of the Borrower and the Subsidiaries;

 

(G)           the proceeds of which shall be used by
Holdings (or Parent) to pay amounts owing pursuant to the Sponsor Agreement,
tax sharing agreements, and other amounts of the type described in Section
6.07, in each case to the extent the applicable payment would be permitted
under Section 6.07 if such payment were to be made by the Borrower or its
Subsidiaries;

 

(H)          the proceeds of which are used to make
Tax Distributions;

 

(I)            the proceeds of which are used to make
Specified Tax Payments; and

 

(ix)  in addition to the foregoing, so long as no
Event of Default has occurred and is continuing, Holdings may make other
Restricted Payments in an amount not exceeding applicable CECF Percentage of
the Cumulative Excess Cash Flow that is Not Otherwise Applied.

 

(b)   Enter into, incur or permit to exist any
agreement or other arrangement that prohibits, restricts or imposes any
condition upon:

 

(i)   the ability of Holdings, the Borrower
or any Subsidiary to create, incur or permit to exist any Lien upon any of its
property or assets to secure the Obligations, or

 

(ii)  the ability of any Subsidiary to pay
dividends or other distributions with respect to any of its Equity Interests or
to make or repay loans or advances to 

 

90

 

the Borrower or any other
Subsidiary or to Guarantee Indebtedness of the Borrower or any other
Subsidiary; provided, that

 

(A)          the foregoing shall not apply to

 

(1)           restrictions and conditions imposed by law or
by any Loan Document or the Second Lien Credit Agreement,

 

(2)           customary restrictions and conditions contained
in agreements relating to an Asset Sale of a Subsidiary or any property pending
such sale, provided such
restrictions and conditions apply only to the Subsidiary or property that is to
be sold,

 

(3)           restrictions and conditions imposed on
(x) any Foreign Subsidiary by the terms of any Indebtedness of such
Foreign Subsidiary permitted to be incurred hereunder or (y) any Project
Subsidiary by the terms of the documentation governing any Permitted Project
Debt of such Project Subsidiary,

 

(4)           restrictions or conditions imposed by any
agreement relating to secured Indebtedness permitted by this Agreement if such
restrictions or conditions apply only to the property or assets securing such
Indebtedness,

 

(5)           are binding on a Subsidiary at the time such
Subsidiary first becomes a Subsidiary, so long as such restrictions were not
entered into solely in contemplation of such person becoming a Subsidiary,

 

(6)           restrictions and conditions imposed by the
terms of the documentation governing any Indebtedness of a Subsidiary of the
Borrower that is not a Loan Party, which indebtedness is permitted by
Section 6.01,

 

(7)           are customary provisions in joint venture
agreements and other similar agreements applicable to joint ventures permitted
under Section 6.04 or to D&W Railroad, LLC (so long as it is not a
wholly owned Subsidiary) and applicable solely to such joint venture entered
into in the ordinary course of business or to D&W Railroad, LLC (so
long as it is not a wholly owned Subsidiary), and

 

(8)           are negative pledges and restrictions on
Liens in favor of any holder of Indebtedness permitted under Section 6.01 but
only if such negative pledge or restriction expressly permits Liens for the
benefit of the Administrative Agent and/or the Collateral Agent and the Lenders
with respect to the credit 

 

91

 

facilities
established hereunder and the Obligations under the Loan Documents on a senior
basis and without a requirement that such holders of such Indebtedness be
secured by such Liens equally and ratably or on a junior basis; and

 

(B) clause (i) of the foregoing shall not
apply to customary provisions in leases, subleases, licenses, sublicenses and
other contracts restricting the assignment thereof.

 

SECTION 6.07. Transactions with Affiliates.
Except for transactions by or among Loan Parties, sell or transfer any property
or assets to, or purchase or acquire any property or assets from, or otherwise
engage in any other transactions with, any of its Affiliates, except:

 

(a) Holdings or any
Subsidiary may engage in any of the foregoing transactions at prices and on
terms and conditions not less favorable to Holdings or such Subsidiary than
could be obtained on an arm’s-length basis from unrelated third parties;

 

(b) Holdings and its
Subsidiaries may pay fees (so long as no Event of Default has occurred under
clauses (g)(i) and (h) of Article VII) and pay, expenses and make
indemnification payments to the Sponsor pursuant to and in accordance with the
Sponsor Agreement; provided, that
no Event of Default under clauses (g)(i) or (h) of Article VII has occurred and
is continuing;

 

(c) the payment of fees
and expenses in connection with the consummation of the Transaction;

 

(d) issuances by Holdings
and the Subsidiaries of Equity Interests not prohibited under this Agreement;

 

(e) customary fees
payable to any directors of Holdings and Parent and reimbursement of reasonable
out-of-pocket costs of the directors of Holdings and Parent, in the case of
Parent to the extent attributable to the operations of Holdings and its
Subsidiaries);

 

(f) employment and
severance arrangements entered into by Holdings and its Subsidiaries with their
officers and employees in the ordinary course of business;

 

(g) payments by Holdings
and its Subsidiaries to each other pursuant to tax sharing agreements among
Holdings and its Subsidiaries on customary terms;

 

(h) the payment of
customary fees and indemnities to directors, officers and employees of Holdings
and its Subsidiaries in the ordinary course of business;

 

(i) transactions pursuant
to permitted agreements in existence on the Closing Date and set forth on
Schedule 6.07 or any amendment thereto to the 

 

92

 

extent such an amendment
is not adverse to the interests of the Lenders in any material respect;

 

(j) Restricted Payments
permitted under Section 6.06;

 

(k) payments by Holdings
and its Subsidiaries to the Sponsor made for any customary financial advisory,
financing, underwriting or placement services or in respect of other investment
banking activities, including in connection with acquisitions or divestitures,
which payments are approved by a majority of the board of directors of
Holdings, in good faith; and

 

(l) loans and other
transactions among Holdings and its Subsidiaries to the extent permitted under
this Article VI.

 

SECTION 6.08. Business of Holdings, Borrower and
Subsidiaries. (a)  With
respect to Holdings, engage in any business activities or have any assets or
liabilities other than its ownership of the Equity Interests of the Borrower
and liabilities and activities incidental thereto including its liabilities
pursuant to the Loan Documents, the Second Lien Credit Agreement and related
loan documents, the Purchase Agreement and the related Transactions and any
transactions Holdings is permitted to engage in pursuant to this Article 6.

 

(b)   With respect to the Borrower and the
Subsidiaries, engage at any time in any business or business activity other
than the business conducted by it on the Closing Date (after giving effect to
the Transactions) and business activities reasonably incidental, ancillary or
related thereto.

 

SECTION 6.09. Other Indebtedness and Agreements.
(a)  Permit any waiver, supplement,
modification, amendment, termination, release, refinancing or refunding of
(i) the Second Lien Credit Agreement and the Second Lien Guarantee and
Collateral Agreement except to the extent such waiver, supplement,
modification, amendment, termination, release, refinancing or refunding is effected
in accordance with the Intercreditor Agreement or (ii) the provisions with
respect to the payment of fees set forth in the Sponsor Agreement, in each case
if the effect of such waiver, supplement, modification, amendment, termination
or release is adverse in any material respect to the interests of the Lenders.

 

(b)   (i)  Except for regular scheduled
payments of principal and interest as and when due (to the extent not
prohibited by applicable subordination provisions), make any distribution,
whether in cash, property, securities or a combination thereof, in respect of,
or pay, or offer or commit to pay, or directly or indirectly redeem,
repurchase, retire or otherwise acquire for consideration, or set apart any sum
for the aforesaid purposes, any Permitted Subordinated Debt, Permitted Senior
Debt or Indebtedness under the Second Lien Credit Agreement (other than with
(w) in the case of Indebtedness under the Second Lien Credit Agreement,
Declined Proceeds applied in accordance with the mandatory prepayment
provisions of the Second Lien Credit Agreement as contemplated by
Section 2.13(f), (x) the Net Cash Proceeds of a Qualified Public
Offering, to the extent 

 

93

 

Not Otherwise Applied and provided that no Default has occurred and is continuing,
(y) the proceeds of any Permitted Refinancing of any of the foregoing, or
(z) the Net Cash Proceeds of any issuance of Equity Interests of Holdings
(other than a Qualified Public Offering or Disqualified Equity Interests) to
the extent Not Otherwise Applied or the conversion of any such Indebtedness to
Equity Interests).

 

SECTION 6.10. Capital Expenditures.
(a)  Subject to paragraphs (b), (c)
and (d) below, permit the aggregate amount of Capital Expenditures made by Holdings
and its Subsidiaries in any fiscal year to exceed $10,000,000 (it being
understood that for the one fiscal year ended 2006, Capital Expenditures shall
be measured from the Closing Date through December 31, 2006).

 

(b)   Notwithstanding anything to the contrary
contained in paragraph (a) above, (i) to the extent that the aggregate
amount of Capital Expenditures made by Holdings and its Subsidiaries in any
fiscal year pursuant to Section 6.10(a) is less than the amount set forth
for such fiscal year, the amount of such difference (the “Rollover Amount”) may
be carried forward and used to make Capital Expenditures in either of the two
immediately succeeding fiscal years, and (ii) if the aggregate amount of
Capital Expenditures made by Holdings and its Subsidiaries in any fiscal year
is greater than the amount permitted for such fiscal year (including any
Rollover Amount), an amount of up to 100% of the amount otherwise available for
Capital Expenditures in the immediately succeeding fiscal year pursuant to paragraph (a)
may be reallocated to such current fiscal year (the “Carryback Amount”),
so long as the base amount of Capital Expenditures permitted by
Section 6.10(a) during the next succeeding fiscal year shall be reduced by
the Carryback Amount.

 

(c)   For any fiscal year during which a Permitted
Acquisition is consummated and for each fiscal year thereafter, the amount
available for Capital Expenditures otherwise permitted under Section 6.10(a)
shall increase by an amount equal to the amount of Capital Expenditures made by
the acquired person or business for the 36-month period immediately preceding
such Permitted Acquisition divided by 3.

 

(d)   Notwithstanding paragraph (a) above, the
Borrower and the Subsidiaries may make the following Capital Expenditures,
which shall not be treated as Capital Expenditures for the purposes of
paragraph (a), (i) Capital Expenditures made with the Net Cash
Proceeds of Equity Interests (other than Disqualified Equity Interests) issued
by Holdings after the Closing Date, Permitted Senior Debt and Permitted
Subordinated Debt, in each case, Not Otherwise Applied; (ii) Capital
Expenditures in an amount not to exceed Cumulative Excess Cash Flow that is Not
Otherwise Applied, and (iii) Capital Expenditures not exceeding $175,000,000
in the aggregate made in connection with the construction and start up of one
or more ethanol plants owned by the Borrower or a Subsidiary Guarantor.

 

94

 

SECTION 6.11. Interest Coverage Ratio.
Permit the Interest Coverage Ratio as of the end of any fiscal quarter ending
on or after September 30, 2006, to be less than the ratio set forth below
opposite the fiscal quarter end:

 

	
  Fiscal Quarter Ending

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  on or prior to December 31, 2008

  	
   

  	
  1.50 to 1.0

  	
   

  
	
  thereafter but on or prior to
  December 31, 2010

  	
   

  	
  1.75 to 1.0

  	
   

  
	
  after December 31, 2010

  	
   

  	
  2.00 to 1.0

  	
   

  

 

SECTION 6.12. Maximum Total Leverage Ratio. Permit the Total Leverage Ratio as of
the end of any fiscal quarter ending on or after September 30, 2006, to be
greater than the ratio set forth below opposite the fiscal quarter end:

 

	
  Fiscal Quarter Ending

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  on or prior to December 31, 2008

  	
   

  	
  6.50 to 1.0

  	
   

  
	
  thereafter but on or prior to
  December 31, 2010

  	
   

  	
  6.00 to 1.0

  	
   

  
	
  after December 31, 2010

  	
   

  	
  5.50 to 1.0

  	
   

  

 

ARTICLE VII

 

Events of Default

 

In
case of the happening of any of the following events (“Events of Default”):

 

(a) any representation or
warranty made or deemed made in any Loan Document or any representation,
warranty, statement or information contained in any report, certificate,
financial statement or other instrument furnished pursuant to any Loan
Document, shall prove to have been false or misleading in any material respect
when so made, deemed made or furnished;

 

(b) default shall be made
in the payment of any principal of any Loan when and as the same shall become
due and payable, whether at the due date thereof or at a date fixed for
mandatory prepayment thereof or by acceleration thereof or otherwise;

 

(c) default shall be made
in the payment of any reimbursement with respect to any L/C Disbursement,
interest on any Loan or L/C Disbursement or any Fee or other amount (other than
an amount referred to in (b) above) due under any Loan Document, when and
as the same shall become due and payable, and such default shall continue
unremedied for a period of three Business Days;

 

95

 

(d) default shall be made
in the due observance or performance by Holdings, the Borrower or any
Subsidiary of any covenant, condition or agreement contained in
Section 5.01(a) (with respect to the Borrower), 5.05(a) or 5.08 or in
Article VI;

 

(e) default shall be made
in the due observance or performance by Holdings, the Borrower or any
Subsidiary of any covenant, condition or agreement contained in any Loan
Document (other than those specified in clause (b), (c) or (d) above) and such
default shall continue unremedied for a period of 30 days after written
notice thereof from the Administrative Agent to the Borrower;

 

(f)
(i)  Holdings, the Borrower or any Subsidiary shall fail to pay any
principal or interest, regardless of amount, due in respect of any Material
Indebtedness, when and as the same shall become due and payable (after giving
effect to an applicable grace period), which failure enables or permits (with
or without the giving of notice, the lapse of time or both) the holder or
holders of such Material Indebtedness or any trustee or agent on its or their
behalf to cause any Material Indebtedness to become due, or to require the
prepayment, repurchase, redemption or defeasance thereof, prior to its
scheduled maturity or that is a failure to pay such indebtedness at its
maturity, or (ii) any other event or condition occurs that results in any
Material Indebtedness becoming due prior to its scheduled maturity or that
enables or permits (with or without the giving of notice, the lapse of time or
both) the holder or holders of any Material Indebtedness or any trustee or
agent on its or their behalf to cause any Material Indebtedness to become due,
or to require the prepayment, repurchase, redemption or defeasance thereof,
prior to its scheduled maturity; provided,
that clause (ii) shall not apply to secured Material Indebtedness that
becomes due as a result of the voluntary sale or transfer of the property or
assets securing such Material Indebtedness;

 

(g) an involuntary
proceeding shall be commenced or an involuntary petition shall be filed in a
court of competent jurisdiction seeking (i) relief in respect of Holdings,
the Borrower or any Subsidiary, or of a substantial part of the property or
assets of Holdings, the Borrower or a Subsidiary, under Title 11 of the
United States Code, as now constituted or hereafter amended, or any other
Federal, state or foreign bankruptcy, insolvency, receivership or similar law,
(ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for Holdings, the Borrower or any Subsidiary or
for a substantial part of the property or assets of Holdings, the Borrower or a
Subsidiary or (iii) the winding-up or liquidation of Holdings, the
Borrower or any Subsidiary; and such proceeding or petition shall continue
undismissed for 60 days or an order or decree approving or ordering any of
the foregoing shall be entered;

 

(h) Holdings, the
Borrower or any Subsidiary shall (i) voluntarily commence any proceeding
or file any petition seeking relief under Title 11 of the United States
Code, as now constituted or hereafter amended, or any other 

 

96

 

Federal, state or foreign
bankruptcy, insolvency, receivership or similar law, (ii) consent to the
institution of any proceeding or the filing of any petition described in (g)
above, (iii) apply for or consent to the appointment of a receiver,
trustee, custodian, sequestrator, conservator or similar official for Holdings,
the Borrower or any Subsidiary or for a substantial part of the property or
assets of Holdings, the Borrower or any Subsidiary, (iv) file an answer
admitting the material allegations of a petition filed against it in any such
proceeding, (v) make a general assignment for the benefit of creditors,
(vi) become unable, admit in writing its general inability or fail
generally to pay its debts as they become due or (vii) take any action for
the purpose of effecting any of the foregoing;

 

(i) one or more judgments
for the payment of money in an aggregate amount exceeding $20,000,000 shall be
rendered against Holdings, the Borrower, any Subsidiary or any combination
thereof and the same shall remain undischarged for a period of
60 consecutive days during which execution shall not be effectively
stayed, or any action shall be legally taken by a judgment creditor to levy
upon assets or properties of Holdings, the Borrower or any Subsidiary to
enforce any such judgment;

 

(j) an ERISA Event shall
have occurred that, when taken together with all other ERISA Events, could
reasonably be expected to result in liability of the Borrower and the
Subsidiaries in an aggregate amount exceeding $20,000,000;

 

(k) any Guarantee under
the Guarantee and Collateral Agreement for any reason shall cease to be in full
force and effect (other than in accordance with its terms or in accordance with
the terms of the other Loan Documents), or any Guarantor shall deny in writing
that it has any further liability under the Guarantee and Collateral Agreement
(other than as a result of the discharge of such Guarantor in accordance with
the terms of the Loan Documents);

 

(l) other than with respect
to de minimis items of Collateral
not exceeding $1 million in the aggregate, any Lien purported to be created by
any Security Document shall cease to be, or shall be asserted in writing by any
Loan Party not to be, a valid, perfected, first priority (except as otherwise
expressly provided in this Agreement or such Security Document) Lien on the
securities, assets or properties purported to be covered thereby, except to the
extent that any such loss of perfection or priority results from the failure of
the Collateral Agent to maintain possession of certificates representing
securities pledged under the Guarantee and Collateral Agreement or to file or
record any document delivered to it for filing or recording; or

 

(m) there shall have
occurred a Change in Control;

 

then,
and in every such event (other than an event with respect to Holdings or the
Borrower described in paragraph (g) or (h) above), and at any time
thereafter during the continuance of such event, the Administrative Agent may,
and at the request of the Required Lenders shall, by notice to the Borrower,
take either or both of the following 

 

97

 

actions,
at the same or different times:  (i) terminate forthwith the
Commitments and (ii) declare the Loans then outstanding to be forthwith
due and payable in whole or in part, whereupon the principal of the Loans so
declared to be due and payable, together with accrued interest thereon and any
unpaid accrued Fees and all other liabilities of the Borrower accrued hereunder
and under any other Loan Document, shall become forthwith due and payable,
without presentment, demand, protest or any other notice of any kind, all of
which are hereby expressly waived by the Borrower, anything contained herein or
in any other Loan Document to the contrary notwithstanding; and in any event
with respect to Holdings or the Borrower described in paragraph (g) or (h)
above, the Commitments shall automatically terminate and the principal of the
Loans then outstanding, together with accrued interest thereon and any unpaid
accrued Fees and all other liabilities of the Borrower accrued hereunder and
under any other Loan Document, shall automatically become due and payable,
without presentment, demand, protest or any other notice of any kind, all of
which are hereby expressly waived by the Borrower, anything contained herein or
in any other Loan Document to the contrary notwithstanding.

 

Notwithstanding
anything to the contrary contained in this Article VII, in the event that the Borrower
fails to comply with the requirements of any financial covenant set forth in
Section 6.11 or 6.12 as of the end of any fiscal quarter, Holdings shall have
the right (the “Cure
Right”) (at any time during such fiscal quarter or thereafter
until the date that is 20 days after the date the certificate calculating
such financial covenants is required to be delivered pursuant to Section
5.04(c)) to (i) issue Qualified Capital Stock for cash or otherwise
receive cash contributions to the common equity of Holdings and
(ii) contribute the Net Cash Proceeds therefrom (the “Cure Amount”) to the
Borrower as common equity (which proceeds are Not Otherwise Applied), and
thereupon such financial covenants shall be recalculated giving effect to the
following pro forma adjustments: (i) Consolidated EBITDA shall be
increased, for all purposes of this Agreement (other than the computation of
Total Leverage Ratio for the purposes of determining Applicable Percentage,
CECF Percentage and ECF Percentage), including determining compliance or Pro
Forma Compliance with Sections 6.11 and 6.12 as of the end of such fiscal
quarter and applicable subsequent periods that include such fiscal quarter by
an amount equal to the Cure Amount; and (ii) if, after giving effect to
the foregoing recalculations (but not, for the avoidance doubt, taking into
account any repayment of Indebtedness in connection therewith), the
requirements of all such financial covenants shall be satisfied, then the
requirements of such financial covenants shall be deemed satisfied as of the
relevant date of determination with the same effect as though there had been no
failure to comply therewith at such date, and the applicable breach or default
of such financial covenants that had occurred shall be deemed cured for the
purposes of this Agreement. Notwithstanding anything herein to the contrary,
(x) in each four fiscal quarter period there shall be a period of at least
one fiscal quarter in which the Cure Right is not exercised, (y) the Cure
Amount shall be no greater than the amount required for purposes of complying
with such financial covenants and (z) upon Administrative Agent’s receipt
of a notice from Holdings or the Borrower that Holdings intends to exercise the
Cure Right, until the 20th day following date of delivery of the certificate
under Section 5.04(c), none of Administrative Agent or any Lender shall
exercise the right to accelerate the Loans or terminate the Commitments and
none of 

 

98

 

Administrative
Agent, Collateral Agent or any other Lender or Secured Party shall exercise any
right to foreclose on or take possession of the Collateral solely on the basis
of an Event of Default having occurred and being continuing under Section 6.11
or 6.12.

 

ARTICLE VIII

 

The Administrative Agent and the Collateral Agent

 

Each
of the Lenders and the Issuing Bank hereby irrevocably appoints the
Administrative Agent and the Collateral Agent (the Administrative Agent and the
Collateral Agent are referred to collectively as the “Agents”) its agent
and authorizes the Agents to take such actions on its behalf and to exercise
such powers as are delegated to such Agent by the terms of the Loan Documents,
together with such actions and powers as are reasonably incidental thereto.
Without limiting the generality of the foregoing, the Agents are hereby
expressly authorized to execute any and all documents (including releases) with
respect to the Collateral and the rights of the Secured Parties with respect
thereto, as contemplated by and in accordance with the provisions of this
Agreement and the Security Documents. The Lenders acknowledge and agree that
the Collateral Agent shall also act, subject to and in accordance with the
terms of the Intercreditor Agreement, as the collateral agent for the lenders
under the Second Lien Credit Agreement.

 

The
bank serving as the Administrative Agent and/or the Collateral Agent hereunder
shall have the same rights and powers in its capacity as a Lender as any other
Lender and may exercise the same as though it were not an Agent, and such bank
and its Affiliates may accept deposits from, lend money to and generally engage
in any kind of business with Holdings, the Borrower or any Subsidiary or other
Affiliate thereof as if it were not an Agent hereunder.

 

Neither
Agent shall have any duties or obligations except those expressly set forth in
the Loan Documents. Without limiting the generality of the foregoing, (a)
neither Agent shall be subject to any fiduciary or other implied duties,
regardless of whether a Default or Event of Default has occurred and is
continuing, (b) neither Agent shall have any duty to take any discretionary
action or exercise any discretionary powers, except discretionary rights and
powers expressly contemplated hereby that such Agent is instructed in writing
to exercise by the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary under the circumstances as provided in Section
9.08), and (c) except as expressly set forth in the Loan Documents, neither
Agent shall have any duty to disclose, nor shall it be liable for the failure
to disclose, any information relating to Holdings, the Borrower or any of the
Subsidiaries that is communicated to or obtained by the bank serving as
Administrative Agent and/or Collateral Agent or any of its Affiliates in any
capacity. Neither Agent shall be liable for any action taken or not taken by it
with the consent or at the request of the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary under the
circumstances as provided in Section 9.08) or in the absence of its own
gross negligence, bad faith or willful misconduct or material breach of the
Loan Documents. Neither Agent shall be deemed to have knowledge of any Default or
Event of Default unless and until written notice thereof is given to such Agent
by Holdings, the Borrower

 

99

 

or
a Lender, and neither Agent shall be responsible for or have any duty to
ascertain or inquire into (i) any statement, warranty or representation
made in or in connection with any Loan Document, (ii) the contents of any
certificate, report or other document delivered thereunder or in connection
therewith, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth in any Loan Document,
(iv) the validity, enforceability, effectiveness or genuineness of any
Loan Document or any other agreement, instrument or document, or (v) the
satisfaction of any condition set forth in Article IV or elsewhere in any
Loan Document, other than to confirm receipt of items expressly required to be
delivered to such Agent.

 

Each
Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument,
document or other writing believed by it to be genuine and to have been signed
or sent by the proper person. Each Agent may also rely upon any statement made
to it orally or by telephone and believed by it to have been made by the proper
person, and shall not incur any liability for relying thereon. Each Agent may
consult with legal counsel (who may be counsel for the Borrower or any
Affiliate thereof), independent accountants and other experts selected by it,
and shall not be liable for any action taken or not taken by it in good faith
and in accordance with the advice of any such counsel, accountants or experts.

 

Each
Agent may perform any and all its duties and exercise its rights and powers by
or through any one or more sub-agents appointed by it. Each Agent and any such
sub-agent may perform any and all its duties and exercise its rights and powers
by or through their respective Related Parties. The exculpatory provisions of
the preceding paragraphs shall apply to any such sub-agent and to the Related
Parties of each Agent and any such sub-agent, and shall apply to their
respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Agent.

 

Subject
to the appointment and acceptance of a successor Agent as provided below,
either Agent may resign at any time by notifying in writing the Lenders, the
Issuing Bank and the Borrower. Upon receipt of any such notice of resignation
of the Administrative Agent or the Collateral Agent, the Required Lenders shall
have the right, with the consent of the Borrower (such consent not to be
unreasonably withheld, and provided,
that no such consent of the Borrower shall be required if an Event of Default
has occurred and is continuing under paragraphs (g)(i) or (h) of
Article VII), to appoint a successor which shall be a commercial banking
institution organized under the laws of the United States or any State or a
United States branch or agency of a commercial banking institution, in each
case having a combined capital and surplus of at least $500,000,000 and which
shall otherwise be approved by the Borrower, such approval not to be
unreasonably withheld or delayed (and shall not be required if an Event of
Default has occurred and is continuing under paragraphs (g)(i) or (h) of
Article VII). Upon the acceptance of its appointment as Agent hereunder by
a successor, such successor shall succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Agent, and the retiring
Agent shall be discharged from its duties and obligations hereunder. The fees
payable by the Borrower to a successor Agent shall be the same as those payable
to its predecessor unless otherwise agreed between the Borrower and such
successor. After an Agent’s resignation hereunder, the provisions of this
Article and 

 

100

 

Section 9.05
shall continue in effect for the benefit of such retiring Agent, its sub-agents
and their respective Related Parties in respect of any actions taken or omitted
to be taken by any of them while acting as Agent.

 

Each
Arranger, in its capacity as such, shall have no duties or responsibilities,
and shall incur no liability, under this Agreement or any other Loan Document.

 

Each
Lender acknowledges that it has, independently and without reliance upon the
Agents, the Arrangers or any other Lender and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender also acknowledges that it
will, independently and without reliance upon the Agents, the Arrangers or any
other Lender and based on such documents and information as it shall from time
to time deem appropriate, continue to make its own decisions in taking or not
taking action under or based upon this Agreement or any other Loan Document,
any related agreement or any document furnished hereunder or thereunder.

 

To
the extent required by any applicable law, the Administrative Agent may
withhold from any interest payment to any Lender an amount equivalent to any
applicable withholding tax. If the Internal Revenue Service or any other
Governmental Authority asserts a claim that the Administrative Agent did not
properly withhold tax from amounts paid to or for the account of any Lender
because the appropriate form was not delivered or was not properly executed or
because such Lender failed to notify the Administrative Agent of a change in
circumstance which rendered the exemption from, or reduction of, withholding
tax ineffective or for any other reason, such Lender shall indemnify the
Administrative Agent fully for all amounts paid, directly or indirectly, by the
Administrative Agent as tax or otherwise, including any penalties or interest
and together with all expenses (including legal expenses, allocated internal
costs and out-of-pocket expenses) incurred.

 

ARTICLE IX

 

Miscellaneous

 

SECTION 9.01. Notices. Notices and
other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by fax, as follows:

 

(a)   if to the Borrower or Holdings, to it at
21050 140th Street, Iowa Falls, IA 50126, Attention of: J.D.
Schlieman and Tim Callahan (Fax No. (641) 648-8925)), cc: (which shall not
constitute notice) Angela Fontana, Esq., Weil, Gotshal & Manges, LLP,
200 Crescent Court, Suite 300, Dallas, TX 75201;

 

(b)   if to Credit Suisse as an Agent, or as Issuing
Bank or Swingline Lender, to Credit Suisse, Eleven Madison Avenue, New York, NY
10010, Attention of Agency Group (Fax No. (212) 325-8304); and

 

101

 

(c)   if to a Lender, to it at its address (or fax
number) set forth on Schedule 2.01 or in the Assignment and Acceptance pursuant
to which such Lender shall have become a party hereto.

 

All
notices and other communications given to any party hereto in accordance with
the provisions of this Agreement shall be deemed to have been given on the date
of receipt if delivered by hand or overnight courier service or sent by fax or
on the date five Business Days after dispatch by certified or registered mail
if mailed, in each case delivered, sent or mailed (properly addressed) to such
party as provided in this Section 9.01 or in accordance with the latest
unrevoked direction from such party given in accordance with this
Section 9.01. As agreed to among Holdings, the Borrower, the
Administrative Agent and the applicable Lenders from time to time in writing,
notices and other communications may also be delivered or furnished by e-mail; provided, that the foregoing shall not
apply to notices pursuant to Article II or to compliance and no Event of
Default certificates delivered pursuant to Section 5.04(c) unless otherwise
agreed by the Applicable Agent; provided,
further, that approval of such
procedures may be limited to particular notices or communications. All such
notices and other communications sent to an e-mail address shall be deemed
received upon the sender’s receipt of an acknowledgement from the intended
recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), provided, that if not given during the normal business hours
of the recipient, such notice or communication shall be deemed to have been
given at the opening of business on the next Business Day for the recipient.

 

SECTION 9.02. Survival of Agreement.
All covenants, agreements, representations and warranties made by the Borrower
or Holdings herein and in the certificates or other instruments prepared or
delivered in connection with or pursuant to this Agreement or any other Loan
Document, shall be considered to have been relied upon by the Lenders and the
Issuing Bank and shall survive the making by the Lenders of the Loans and the
issuance of Letters of Credit by the Issuing Bank, regardless of any
investigation made by the Lenders or the Issuing Bank or on their behalf, 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 this
Agreement or any other Loan Document is outstanding and unpaid or any Letter of
Credit is outstanding and so long as the Commitments have not been terminated.
The provisions of Sections 2.14, 2.16, 2.20 and 9.05 shall remain
operative and in full force and effect regardless of the expiration of the term
of this Agreement, the consummation of the transactions contemplated hereby,
the repayment of any of the Loans, the expiration of the Commitments, the
expiration of any Letter of Credit, the invalidity or unenforceability of any
term or provision of this Agreement or any other Loan Document, or any
investigation made by or on behalf of the Administrative Agent, the Collateral
Agent, any Lender or the Issuing Bank.

 

SECTION 9.03. Binding Effect. This
Agreement shall become effective when it shall have been executed by the
Borrower, Holdings and 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.

 

102

 

SECTION 9.04. Successors and Assigns.
(a)  Whenever in this Agreement any of
the parties hereto is referred to, such reference shall be deemed to include
the permitted successors and assigns of such party; and all covenants, promises
and agreements by or on behalf of the Borrower, Holdings, the Administrative
Agent, the Collateral Agent, the Issuing Bank or the Lenders that are contained
in this Agreement shall bind and inure to the benefit of their respective
successors and assigns.

 

(b)   Each Lender may assign to one or more
assignees all or a portion of its interests, rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans at the
time owing to it); provided, however, that (i) each of the
Administrative Agent and the Borrower must give its prior written consent to
such assignment (which consent shall not be unreasonably withheld or delayed), provided, that the consent of the Borrower
shall not be required to any such assignment (A) made to a
Lender (other than to Disqualified Institutions) or an Affiliate or Related
Fund of a Lender (other than to Disqualified Institutions) or
(B) during the continuance of any Event of Default arising under
clause (b), (c), (g)(i), or (h) of Article VII, (ii) in the case
of any assignment of a Revolving Credit Commitment, each of the Issuing Bank
and the Swingline Lender must give its prior written consent (which consent
shall not be unreasonably withheld or delayed), (iii) (A) in the case
of any assignment, other than assignments to any Lender or any Affiliate or Related
Fund thereof, the amount of the Revolving Credit Commitment of the assigning
Lender (or, in the case of an assignment of Loans after the Revolving Credit
Commitment has expired or been terminated, the aggregate principal amount of
the loans of the assigning Lenders) subject to each such assignment (determined
as of the date of the Assignment and Acceptance with respect to such assignment
is delivered to the Administrative Agent) shall not be less than $5,000,000
(or, if less, the entire remaining amount of such Lender’s Revolving Credit
Commitment (or Loans)) and shall be in an amount that is an integral multiple
of $1,000,000 (or the entire remaining amount of such Lender’s Revolving Credit
Commitment (or Loans) of the applicable Class) and the amount of the Term Loan
Commitment or Term Loans of the assigning Lender subject to each such
assignment (determined as of the date of the Assignment and Acceptance with
respect to such assignment is delivered to the Administrative Agent) shall not
be less than $1,000,000 (or if less, the entire remaining amount of such Lender’s
Term Loan Commitment or Term Loans) and shall be in an amount that is an
integral multiple of $1,000,000 (or the entire remaining amount of such Lender’s
Term Loan Commitment or Term Loans of the applicable Class), provided, however,
that simultaneous assignments to two or more Related Funds shall be combined
for purposes of determining whether the minimum assignment requirement is met,
and (B) in the case of any assignment to a Lender (other than to
Disqualified Institutions) or any Affiliate or Related Fund thereof (other than
to Disqualified Institutions), after giving effect to such assignment, the
aggregate Revolving Credit Commitments (or Loans) or Term Loan Commitments or
Term Loans, as applicable, of the assigning Lender and its Affiliates and
Related Funds shall be zero or not less than $1,000,000 and the aggregate
Revolving Credit Commitments (or Loans) or Term Loan Commitments or Term Loans,
as applicable, of the assignee Lenders and their Affiliates and Related Funds
shall be not less than $1,000,000, (iv) the parties to each such
assignment shall execute and deliver to the Administrative Agent an Assignment
and Acceptance (such Assignment and Acceptance to be (A) electronically executed
and 

 

103

 

delivered to the Administrative Agent via an
electronic settlement system then acceptable to the Administrative Agent (or,
if previously agreed with the Administrative Agent, manually), and
(B) delivered together with a processing and recordation fee of $3,500,
unless waived or reduced by the Administrative Agent in its sole discretion, provided, that only one such fee shall be
payable in connection with simultaneous assignments by or to two or more Related
Funds) and (v) the assignee, if it shall not be a Lender immediately prior
to the assignment, shall deliver to the Administrative Agent an Administrative
Questionnaire. Upon acceptance and recording pursuant to paragraph (e) of
this Section 9.04, from and after the effective date specified in each
Assignment and Acceptance, (A) the assignee thereunder shall be a party
hereto and, to the extent of the interest assigned by such Assignment and
Acceptance, have the rights and obligations of a Lender under this Agreement
and (B) the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Acceptance, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of
Sections 2.14, 2.16, 2.20 and 9.05 with respect to facts and circumstances
occurring prior to the effective date of such assignment, as well as to any
Fees accrued for its account and not yet paid). Any assignment or transfer that
does not comply with this paragraph shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (f) of this Section 9.04.

 

(c)   By executing and delivering an Assignment
and Acceptance, the assigning Lender thereunder and the assignee thereunder
shall be deemed to confirm to and agree with each other and the other parties
hereto as follows:  (i) such assigning Lender warrants that it
is the legal and beneficial owner of the interest being assigned thereby free
and clear of any adverse claim and that its Term Loan Commitment and Revolving
Credit Commitment, and the outstanding balances of its Term Loans and Revolving
Loans, in each case without giving effect to assignments thereof which have not
become effective, are as set forth in such Assignment and Acceptance,
(ii) except as set forth in (i) above, such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this
Agreement, or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement, any other Loan Document or any other
instrument or document furnished pursuant hereto, or the financial condition of
Holdings, the Borrower or any Subsidiary or the performance or observance by
Holdings, the Borrower or any Subsidiary of any of its obligations under this
Agreement, any other Loan Document or any other instrument or document
furnished pursuant hereto; (iii) such assignee represents and warrants that
it is legally authorized to enter into such Assignment and Acceptance;
(iv) such assignee confirms that it has received a copy of this Agreement,
together with copies of the most recent financial statements referred to in
Section 3.05(a) or delivered pursuant to Section 5.04, the
Intercreditor Agreement and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
such Assignment and Acceptance; (v) such assignee will independently and
without reliance upon the Administrative Agent, the Collateral Agent, such
assigning Lender or any other Lender and based on such 

 

104

 

documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under this Agreement; (vi) such assignee agrees to be bound by the
terms of the Intercreditor Agreement; (vii) such assignee appoints and
authorizes the Administrative Agent and the Collateral Agent to take such
action as agent on its behalf and to exercise such powers under this Agreement
as are delegated to the Administrative Agent and the Collateral Agent,
respectively, by the terms hereof, together with such powers as are reasonably
incidental thereto; and (viii) such assignee agrees that it will perform
in accordance with their terms all the obligations which by the terms of this
Agreement are required to be performed by it as a Lender.

 

(d)   The Administrative Agent, acting for this purpose
as an agent of the Borrower, shall maintain at one of its offices in The City
of New York a copy of each Assignment and Acceptance delivered to it and a
register for the recordation of the names and addresses of the Lenders and any
changes thereto, whether by assignment or otherwise, and the Commitment of, and
principal amount of the Loans (and related interest amount and fees with
respect to such Loan) owing and paid to, each Lender pursuant to the terms
hereof from time to time (the “Register”). The entries in the Register shall be
conclusive and the Borrower, the Administrative Agent, the Issuing Bank, the
Collateral Agent and the Lenders may treat each person whose name is recorded
in the Register pursuant to the terms hereof as a Lender hereunder for all
purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by the Borrower, the Issuing Bank,
the Collateral Agent and any Lender, at any reasonable time and from time to
time upon reasonable prior notice.

 

(e)   Upon its receipt of, and consent to, a duly
completed Assignment and Acceptance executed by an assigning Lender and an
assignee, an Administrative Questionnaire completed in respect of the assignee
(unless the assignee shall already be a Lender hereunder), the processing and
recordation fee referred to in paragraph (b) above, if applicable, and the
written consent of the Administrative Agent, the Borrower, the Swingline Lender
and the Issuing Bank to such assignment (in each case to the extent required
pursuant to paragraph (b) above) and any applicable tax forms, the
Administrative Agent shall (i) accept such Assignment and Acceptance and
(ii) promptly record the information contained therein in the Register. No
assignment shall be effective unless it has been recorded in the Register as
provided in this paragraph (e).

 

(f)   Each Lender may without the consent of the
Borrower, the Swingline Lender, the Issuing Bank or the Administrative Agent
sell participations to one or more banks or other persons (other than to
Disqualified Institutions) in all or a portion of its rights and obligations
under this Agreement (including all or a portion of its Commitment and the
Loans owing to it); provided, however, that (i) such Lender’s
obligations under this Agreement shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance
of such obligations, (iii) the participating banks or other persons shall
be entitled to the benefit of the cost protection provisions contained in
Sections 2.14, 2.16 and 2.20 to the same extent as if they were Lenders
(but, with respect to any particular participant, to no greater extent than the
Lender that sold the participation to such participant and in the case of
Section 2.20, only if such 

 

105

 

participant shall have provided any form of
information that it would have been required to provide under such Section if
it were a Lender), (iv) such Lender shall maintain a Register
substantially in the form described in Section 9.04(d) (the “Participant
Register”) and (v) the Borrower, the Administrative Agent, the Issuing Bank and
the Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement, and
such Lender shall retain the sole right to enforce the obligations of the
Borrower relating to the Loans or L/C Disbursements and to approve any
amendment, modification or waiver of any provision of this Agreement (other
than amendments, modifications or waivers decreasing any fees payable to such
participating bank or person hereunder or the amount of principal of or the
rate at which interest is payable on the Loans in which such participating bank
or person has an interest, extending any scheduled principal payment date or
date fixed for the payment of interest on the Loans in which such participating
bank or person has an interest, increasing or extending the Commitments in
which such participating bank or person has an interest or releasing any
Guarantor (other than in connection with the sale of such Guarantor in a
transaction permitted by Section 6.05) or all or substantially all of the
Collateral). Each Lender selling a participation to a participant (i) shall
keep a register, meeting the requirements of Treasury Regulation Section
5f.103-1(c), of each such participation, specifying such participant’s
entitlement to payments of principal and interest with respect to such
participation, and (ii) shall provide the Administrative Agent and the Borrower
with the applicable forms, certificates and statements described in Section
2.20(e) hereof, prior to the times such participant receives payments with
respect to such participation, as if such participant was a Lender hereunder.

 

(g)   Any Lender or participant may, in connection
with any assignment or participation or proposed assignment or participation
pursuant to this Section 9.04, disclose to the assignee or participant or
proposed assignee or participant any information relating to the Borrower
furnished to such Lender by or on behalf of the Borrower; provided, that prior to any such
disclosure of information designated by the Borrower as confidential, each such
assignee or participant or proposed assignee or participant shall execute an
agreement whereby such assignee or participant shall agree (subject to
customary exceptions) to preserve the confidentiality of such confidential
information on terms no less restrictive than those applicable to the Lenders
pursuant to Section 9.16.

 

(h)   Any Lender may at any time assign all or any
portion of its rights under this Agreement to secure extensions of credit to
such Lender or in support of obligations owed by such Lender; provided, that no such assignment shall
release a Lender from any of its obligations hereunder or substitute any such
assignee for such Lender as a party hereto.

 

(i)   Notwithstanding anything to the contrary
contained herein, any Lender (a “Granting Lender”) may grant to a special
purpose funding vehicle (an “SPC”), identified as such in writing from time to time
by the Granting Lender to the Administrative Agent and the Borrower, the option
to provide to the Borrower all or any part of any Loan that such Granting
Lender would otherwise be obligated to make to the Borrower pursuant to this
Agreement; provided,
that (i) nothing herein shall constitute a commitment by any SPC to
make any Loan and (ii) if an SPC elects not to exercise such 

 

106

 

option or otherwise fails to provide all or any part
of such Loan, the Granting Lender shall be obligated to make such Loan pursuant
to the terms hereof. The making of a Loan by an SPC hereunder shall utilize the
Commitment of the Granting Lender to the same extent, and as if, such Loan were
made by such Granting Lender. Each party hereto hereby agrees that (i) neither
the grant to any SPC nor the exercise by any SPC of such option shall increase
the costs or expenses or otherwise increase or change the obligations of the
Borrower hereunder and (ii) no SPC shall be liable for any indemnity or similar
payment obligation under this Agreement (all liability for which shall remain
with the Granting Lender) and (iii) the Granting Lender shall for all purposes
remain the Lender of record hereunder. In addition, notwithstanding anything to
the contrary contained in this Section 9.04, any SPC may (i) with notice
to, but without the prior written consent of, the Borrower and the
Administrative Agent and without paying any processing fee therefor, assign all
or a portion of its interests in any Loans to the Granting Lender and
(ii) disclose on a confidential basis any non-public information relating
to its funding of Loans to any rating agency, commercial paper dealer or
provider of any surety, guarantee or credit or liquidity enhancement to such
SPC.

 

(j)   Neither Holdings nor the Borrower shall
assign or delegate any of its rights or duties hereunder (other than in a
transaction permitted by Section 6.05(a)) without the prior written
consent of the Administrative Agent, the Issuing Bank and each Lender, and any
attempted assignment without such consent shall be null and void.

 

SECTION 9.05. Expenses; Indemnity.
(a)  The Borrower and Holdings agree,
jointly and severally, to pay all reasonable out-of-pocket expenses incurred by
the Arrangers, the Administrative Agent, the Collateral Agent, the Issuing Bank
and the Swingline Lender in connection with the syndication of the Credit
Facilities and the preparation and administration of this Agreement and the
other Loan Documents or in connection with any amendments, modifications or
waivers of the provisions hereof or thereof (whether or not the transactions
hereby or thereby contemplated shall be consummated) or incurred by the
Arrangers, the Administrative Agent, the Collateral Agent, the Issuing Bank,
the Swingline Lender or any Lender in connection with the enforcement or
protection of its rights in connection with this Agreement and the other Loan
Documents or in connection with the Loans made or Letters of Credit issued
hereunder, including reasonable fees, disbursements and other charges of
Cravath, Swaine & Moore LLP, counsel for the Administrative Agent and
the Collateral Agent, and, in connection with any such enforcement or
protection, reasonable fees, disbursements and other charges of one outside
counsel and one local counsel in any jurisdiction as the Arrangers, the
Administrative Agent, the Collateral Agent, the Issuing Bank, the Swingline
Lender or any Lender determine to be reasonably necessary.

 

(b)   The Borrower and Holdings agree, jointly and
severally, to indemnify each Arranger, the Administrative Agent, the Collateral
Agent, each Lender, the Issuing Bank, the Swingline Lender and each Related Party
of any of the foregoing persons and their successors and assigns (each such
person being called an “Indemnitee”)
against, and to hold each Indemnitee harmless from, any and all costs, expenses
(including reasonable fees, out-of-pocket disbursements and other charges of
one primary counsel and one local counsel to the Indemnitees taken as a whole
in each relevant jurisdiction; provided,
that if 

 

107

 

(a) one or more Indemnitees shall have reasonably
concluded that there may be legal defenses available to it that are different
from or in addition to those available to one or more other Indemnitees or
(b) the representation of the Indemnitees (or any portion thereof) by the
same counsel would be inappropriate due to actual or potential differing
interests between them, then such expenses shall include the reasonable fees,
out-of-pocket disbursements and other charges of one separate counsel to such
Indemnitees, taken as a whole, in each relevant jurisdiction, and liabilities
of such Indemnitee arising out of or in connection with (i) the execution
or delivery of this Agreement or any other Loan Document or any agreement or
instrument contemplated thereby, the performance by the parties thereto of
their respective obligations thereunder or the consummation of the Transactions
and the other transactions contemplated thereby (including the syndication of
the Credit Facilities), (ii) the use of the proceeds of the Loans or
issuance of Letters of Credit, (iii) any claim, litigation, investigation
or proceeding relating to any of the foregoing, whether or not any Indemnitee
is a party thereto (and regardless of whether such matter is initiated by a
third party or by the Borrower, any other Loan Party or any of their respective
Affiliates), or (iv) any actual or alleged presence or Release of
Hazardous Materials on any property currently or formerly owned or operated by
Holdings, the Borrower or any of the Subsidiaries, or any Environmental
Liability related in any way to Holdings, the Borrower or the Subsidiaries; provided, that such indemnity shall not,
as to any Indemnitee, be available to the extent that such costs, expenses or
liabilities resulted from the gross negligence, bad faith or willful misconduct
of such Indemnitee (or its Related Parties) or material breach of its (or its
Related Parties’) obligations hereunder or relate to the presence or Release of
Hazardous Materials that first occur at any property owned by Holdings or the
Borrower after such property is transferred to any Indemnitee or its successors
or assigns by foreclosure, deed-in-lieu of foreclosure or similar transfer.

 

(c)   To the extent that Holdings and the Borrower
fail to pay any amount required to be paid by them to the Administrative Agent,
the Collateral Agent, the Issuing Bank or the Swingline Lender under
paragraph (a) or (b) of this Section, each Lender severally agrees to pay
to the Administrative Agent, the Collateral Agent, the Issuing Bank or the
Swingline Lender, as the case may be, such Lender’s pro rata share (determined
as of the time that the applicable unreimbursed expense or indemnity payment is
sought) of such unpaid amount; provided,
that the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against the
Administrative Agent, the Collateral Agent, the Issuing Bank or the Swingline
Lender in its capacity as such. For purposes hereof, a Lender’s “pro rata share”
shall be determined based upon its share of the sum of the Aggregate Revolving
Credit Exposure, outstanding Term Loans and unused Commitments at the time.

 

(d)   To the extent permitted by applicable law,
no party hereto shall assert, and each party hereto hereby waives, any claim
against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, this Agreement or any
agreement or instrument contemplated hereby, the Transactions, any Loan or
Letter of Credit or the use of the proceeds thereof.

 

108

 

(e)   The provisions of this Section 9.05
shall survive the expiration of the term of this Agreement, the consummation of
the transactions contemplated hereby, the repayment of any of the Loans, the
expiration of the Commitments, the expiration of any Letter of Credit, the
invalidity or unenforceability of any term or provision of this Agreement or
any other Loan Document, or any investigation made by or on behalf of the
Administrative Agent, the Collateral Agent, any Lender or the Issuing Bank. All
amounts due under this Section 9.05 shall be payable within 30 days after
written demand therefor.

 

SECTION 9.06. Right of Setoff. If
an Event of Default shall have occurred and be continuing, each Lender is
hereby authorized at any time and from time to time, except to the extent
prohibited 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
indebtedness at any time owing by such Lender to or for the credit or the
account of the Borrower or Holdings against any of and all the obligations of
the Borrower or Holdings now or hereafter existing under this Agreement and
other Loan Documents held by such Lender, irrespective of whether or not such
Lender shall have made any demand under this Agreement or such other Loan
Document and although such obligations may be unmatured. The rights of each Lender
under this Section 9.06 are in addition to other rights and remedies
(including other rights of setoff) which such Lender may have.

 

SECTION 9.07. Applicable Law. THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS (OTHER THAN LETTERS OF CREDIT AND AS
EXPRESSLY SET FORTH IN OTHER LOAN DOCUMENTS) SHALL BE CONSTRUED IN ACCORDANCE
WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. EACH LETTER OF CREDIT
SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OR
RULES DESIGNATED IN SUCH LETTER OF CREDIT, OR IF NO SUCH LAWS OR RULES ARE
DESIGNATED, THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS MOST
RECENTLY PUBLISHED AND IN EFFECT, ON THE DATE SUCH LETTER OF CREDIT WAS ISSUED,
BY THE INTERNATIONAL CHAMBER OF COMMERCE (THE “UNIFORM CUSTOMS”) AND, AS TO
MATTERS NOT GOVERNED BY THE UNIFORM CUSTOMS, THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 9.08. Waivers; Amendment.
(a)  No failure or delay of the
Administrative Agent, the Collateral Agent, any Lender or the Issuing Bank in
exercising any power or right hereunder or under any other Loan Document shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce
such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and remedies of the
Administrative Agent, the Collateral Agent, the Issuing Bank and the Lenders
hereunder and under the other Loan Documents are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver
of any provision of this Agreement or any other Loan Document or consent to any
departure by the Borrower or any other Loan Party therefrom shall in any event
be effective unless the same shall be permitted by paragraph (b) below,
and then such waiver or consent shall be 

 

109

 

effective only in the specific instance and for the
purpose for which given. No notice or demand on the Borrower or Holdings in any
case shall entitle the Borrower or Holdings to any other or further notice or
demand in similar or other circumstances.

 

(b)   Subject to Section 2.24, neither this
Agreement nor any other Loan Document nor any provision hereof or thereof may
be waived, amended or modified except pursuant to an agreement or agreements in
writing entered into by the Required Lenders and the Loan Parties that are
party thereto and are affected by such waiver, amendment or modification; provided, however,
that no such agreement shall (i) decrease the principal amount of, or
extend the maturity of or any scheduled principal payment date or date for the
payment of any interest on any Loan or any date for reimbursement of an L/C
Disbursement, or waive or forgive any such payment or any part thereof, or
decrease the rate of interest on any Loan or L/C Disbursement, without the
prior written consent of each Lender directly adversely affected thereby (it
being understood that any change to the component definitions of the financial
covenants contained in Article VI shall only require the consent of the
Borrower and the Required Lenders), (ii) increase or extend the
Commitment or decrease or extend the date for payment of any Fees of any Lender
without the prior written consent of such Lender, (iii) amend or
modify the pro rata requirements of Section 2.17, the provisions of
Section 9.04(j) (it being understood that any change to Section 6.05 shall
only require approval of the Required Lenders) or the provisions of this
Section (except as set forth below) or release all or substantially all of the
Guarantors or all or substantially all of the Collateral, without the prior
written consent of each Lender, (iv) modify the protections afforded
to an SPC pursuant to the provisions of Section 9.04(i) without the
written consent of such SPC or (v) reduce the percentage contained in the
definition of the term “Required Lenders” without the prior written consent of
each Lender (it being understood that with the consent of the Required Lenders,
additional extensions of credit pursuant to this Agreement may be included in
the determination of the Required Lenders on substantially the same basis as
the Commitments and extensions of credit thereunder on the date hereof and this
Section may be amended to reflect such extension of credit); provided, further,
that no such agreement shall amend, modify or otherwise affect the rights or
duties of the Administrative Agent, the Collateral Agent, the Issuing Bank or
the Swingline Lender hereunder or under any other Loan Document without the
prior written consent of the Administrative Agent, the Collateral Agent, the
Issuing Bank or the Swingline Lender.

 

SECTION 9.09. Interest Rate Limitation.
Notwithstanding anything herein to the contrary, if at any time the interest
rate applicable to any Loan or participation in any L/C Disbursement, together
with all fees, charges and other amounts which are treated as interest on such
Loan or participation in such L/C Disbursement under applicable law
(collectively the “Charges”),
shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for,
charged, taken, received or reserved by the Lender holding such Loan or
participation in accordance with applicable law, the rate of interest payable
in respect of such Loan or participation hereunder, together with all Charges
payable in respect thereof, shall be limited to the Maximum Rate and, to the
extent lawful, the interest and Charges that would have been payable in respect
of such Loan or participation but were not payable as a result of the operation
of this Section 9.09 shall be cumulated and the interest and Charges
payable to such Lender in respect of other Loans 

 

110

 

or participations or periods shall be increased (but
not above the Maximum Rate therefor) until such cumulated amount shall have
been received by such Lender.

 

SECTION 9.10. Entire Agreement.
This Agreement, the Fee Letter and the other Loan Documents constitute the
entire contract between the parties relative to the subject matter hereof. Any
other previous agreement among the parties with respect to the subject matter
hereof is superseded by this Agreement and the other Loan Documents. Nothing in
this Agreement or in the other Loan Documents, expressed or implied, is
intended to confer upon any person (other than the parties hereto and thereto,
their respective successors and assigns permitted hereunder (including any
Affiliate of the Issuing Bank that issues any Letter of Credit) and, to the
extent expressly contemplated hereby, the Indemnitees, the Arrangers, the
Related Parties of each of the Administrative Agent, the Collateral Agent, the
Issuing Bank and the Lenders) any rights, remedies, obligations or liabilities
under or by reason of this Agreement or the other Loan Documents.

 

SECTION 9.11. WAIVER OF JURY TRIAL.
EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS
AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS. EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 9.11.

 

SECTION 9.12. Severability. In the
event any one or more of the provisions contained in this Agreement or in any
other Loan Document should be held invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions
contained herein and therein shall not in any way be affected or impaired
thereby (it being understood that the invalidity of a particular provision in a
particular jurisdiction shall not in and of itself affect the validity of such
provision in any other jurisdiction). The parties shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to
that of the invalid, illegal or unenforceable provisions.

 

SECTION 9.13. 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, and shall become
effective as provided in Section 9.03. Delivery of an executed signature 

 

111

 

page to this Agreement by facsimile transmission shall
be as effective as delivery of a manually signed counterpart of this Agreement.

 

SECTION 9.14. 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 are not to affect the
construction of, or to be taken into consideration in interpreting, this
Agreement.

 

SECTION 9.15. Jurisdiction; Consent
to Service of Process. (a)  Each of
Holdings and the Borrower hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of any New York
State court or Federal court of the United States of America sitting in
New York City, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Agreement or the other Loan
Documents, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding may be heard and determined in such
New York State or, to the extent permitted by law, in such Federal court.
Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law. Nothing in this
Agreement shall affect any right that the Administrative Agent, the Collateral
Agent, the Issuing Bank or any Lender may otherwise have to bring any action or
proceeding relating to this Agreement or the other Loan Documents against the
Borrower, Holdings or their respective properties in the courts of any
jurisdiction.

 

(b)   Each of Holdings and the Borrower hereby
irrevocably and unconditionally waives, to the fullest extent it may legally
and effectively do so, any objection which it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Agreement or the other Loan Documents in any New York State or
Federal court. Each of the parties hereto hereby irrevocably waives, to the
fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

 

(c)   Each party to this Agreement irrevocably
consents to service of process in the manner provided for notices in
Section 9.01. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

 

SECTION 9.16. Confidentiality. Each
of the Administrative Agent, the Collateral Agent, the Issuing Bank and the
Lenders agrees to maintain the confidentiality of the Information (as defined
below), except that Information may be disclosed (a) to its and its
Affiliates’ officers, directors, employees and agents, including accountants,
legal counsel and other advisors (it being understood that the persons to whom
such disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential) in connection
with the transactions contemplated or permitted hereby, (b) to the extent
requested by any regulatory authority, (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process (provided, that the Administrative Agent,
Collateral Agent, Issuing Bank or Lender that 

 

112

 

discloses any Information pursuant to this
clause (c) shall provide Borrower and Holdings with prompt notice of such
disclosure to the extent permitted by applicable law), (d) to the extent
reasonably necessary in connection with the exercise of any remedies hereunder
or under the other Loan Documents or any suit, action or proceeding relating to
the enforcement of its rights hereunder or thereunder, (e) subject to an
agreement containing provisions substantially the same as those of this
Section 9.16 (or as otherwise may be acceptable to Borrower and Holdings),
to (i) any actual or prospective assignee of or participant in any of its
rights or obligations under this Agreement and the other Loan Documents or
(ii) any actual or prospective counterparty (or its advisors) to any swap
or derivative transaction relating to Holdings, the Borrower, any Subsidiary or
any Affiliate thereof or any of their respective obligations, (f) with the
written consent of Holdings or the Borrower or (g) to the extent such
Information becomes publicly available other than as a result of a breach of
this Section 9.16. For the purposes of this Section, “Information” shall mean all information
received from the Borrower or Holdings and related to the Borrower or Holdings
or their business, other than any such information that is publicly available
to the Administrative Agent, the Collateral Agent, the Issuing Bank or any
Lender, other than by reason of disclosure by Administrative Agent, the
Collateral Agent, the Issuing Bank or any Lender. Any person required to
maintain the confidentiality of Information as provided in this
Section 9.16 shall be considered to have complied with its obligation to
do so if such person has exercised the same degree of care to maintain the
confidentiality of such Information as such person would accord its own
confidential information.

 

SECTION 9.17. USA PATRIOT Act Notice.
Each Lender and the Administrative Agent (for itself and not on behalf of any
Lender) hereby notifies Holdings and the Borrower that pursuant to the
requirements of the USA PATRIOT Act, it is required to obtain, verify and
record information that identifies Holdings and the Borrower, which information
includes the name and address of Holdings and the Borrower and other
information that will allow such Lender or the Administrative Agent, as
applicable, to identify Holdings and the Borrower in accordance with the USA
PATRIOT Act.

 

113

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

	
   

  	
  HAWKEYE
  INTERMEDIATE, LLC,

  
	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/
  Bruce Rastetter

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Bruce Rastetter

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THL-HAWKEYE
  ACQUISITION LLC,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/
  Bruce Rastetter

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Bruce Rastetter

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CREDIT
  SUISSE, CAYMAN ISLANDS BRANCH, individually and as Administrative Agent,
  Collateral Agent, Swingline Lender and Issuing Bank,

  
	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/
  James Moran

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  James Moran

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  Managing Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/
  Gregory S. Richards

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Gregory S. Richards

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  Associate

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MORGAN
  STANLEY SENIOR FUNDING, INC., as a Lender,

  
	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/
  John McCann

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  John McCann

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  Vice President

  	
   

  

 

114

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