Document:

Exhibit 10.1

 

CREDIT AGREEMENT

 

Dated as of August 13, 2010

 

among

 

AMPHENOL CORPORATION,

as a Borrower and a Guarantor

 

and

 

CERTAIN OF ITS SUBSIDIARIES,

as Designated Borrowers,

 

and

 

CERTAIN OF ITS SUBSIDIARIES,

as Guarantors

 

BANK OF AMERICA, N.A,

as Administrative Agent, Swing Line Lender

and

L/C Issuer,

 

J.P. MORGAN SECURITIES INC.

as Syndication Agent

 

and

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

CREDIT AGRICOLE CORPORATE & INVESTMENT BANK NY,

DEUTSCHE BANK SECURITIES INC.,

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH

and

TD BANK, N.A.

as Co-Documentation Agents

 

and

 

The Other Lenders Party Hereto

 

BANC OF AMERICA SECURITIES LLC and

J.P. MORGAN SECURITIES INC.

as Joint Book Runners

and

BANC OF AMERICA SECURITIES LLC,

J.P. MORGAN SECURITIES INC. and

WELLS FARGO SECURITIES, LLC

as Joint Lead Arrangers

 

 

TABLE OF CONTENTS

 

	
  Section

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I DEFINITIONS AND
  ACCOUNTING TERMS

  	
   

  	
  1

  
	
  1.01

  	
  Defined Terms

  	
   

  	
  1

  
	
  1.02

  	
  Other Interpretive Provisions

  	
   

  	
  26

  
	
  1.03

  	
  Accounting Terms

  	
   

  	
  27

  
	
  1.04

  	
  Exchange Rates; Currency Equivalents

  	
   

  	
  27

  
	
  1.05

  	
  Additional Alternative Currencies

  	
   

  	
  28

  
	
  1.06

  	
  Change of Currency

  	
   

  	
  28

  
	
  1.07

  	
  Times of Day

  	
   

  	
  29

  
	
  1.08

  	
  Letter of Credit Amounts

  	
   

  	
  29

  
	
  ARTICLE II THE COMMITMENTS
  AND CREDIT EXTENSIONS

  	
   

  	
  29

  
	
  2.01

  	
  Committed Loans

  	
   

  	
  29

  
	
  2.02

  	
  Borrowings, Conversions and Continuations of Committed
  Loans

  	
   

  	
  30

  
	
  2.03

  	
  Letters of Credit

  	
   

  	
  32

  
	
  2.04

  	
  Swing Line Loans

  	
   

  	
  40

  
	
  2.05

  	
  Prepayments

  	
   

  	
  42

  
	
  2.06

  	
  Termination or Reduction of Commitments

  	
   

  	
  43

  
	
  2.07

  	
  Repayment of Loans

  	
   

  	
  43

  
	
  2.08

  	
  Interest

  	
   

  	
  44

  
	
  2.09

  	
  Fees

  	
   

  	
  44

  
	
  2.10

  	
  Computation of Interest and Fees

  	
   

  	
  45

  
	
  2.11

  	
  Evidence of Debt

  	
   

  	
  45

  
	
  2.12

  	
  Payments Generally; Administrative Agent’s Clawback

  	
   

  	
  46

  
	
  2.13

  	
  Sharing of Payments by Lenders

  	
   

  	
  48

  
	
  2.14

  	
  Designated Borrowers

  	
   

  	
  48

  
	
  2.15

  	
  Cash Collateral

  	
   

  	
  50

  
	
  2.16

  	
  Defaulting Lenders

  	
   

  	
  50

  
	
  ARTICLE III TAXES, YIELD
  PROTECTION AND ILLEGALITY

  	
   

  	
  52

  
	
  3.01

  	
  Taxes

  	
   

  	
  52

  
	
  3.02

  	
  Illegality

  	
   

  	
  54

  
	
  3.03

  	
  Inability to Determine Rates

  	
   

  	
  55

  
	
  3.04

  	
  Increased Costs

  	
   

  	
  55

  
	
  3.05

  	
  Compensation for Losses

  	
   

  	
  57

  
	
  3.06

  	
  Mitigation Obligations; Replacement of Lenders

  	
   

  	
  58

  
	
  3.07

  	
  Survival

  	
   

  	
  58

  
	
  ARTICLE IV GUARANTY

  	
   

  	
  58

  
	
  4.01

  	
  The Guaranty

  	
   

  	
  58

  
	
  4.02

  	
  Obligations Unconditional

  	
   

  	
  59

  
	
  4.03

  	
  Reinstatement

  	
   

  	
  60

  
	
  4.04

  	
  Certain Additional Waivers

  	
   

  	
  60

  
	
  4.05

  	
  Remedies

  	
   

  	
  61

  
	
  4.06

  	
  Rights of Contribution

  	
   

  	
  61

  
	
  4.07

  	
  Guarantee of Payment; Continuing Guarantee

  	
   

  	
  61

  
	
  ARTICLE V CONDITIONS
  PRECEDENT TO CREDIT EXTENSIONS

  	
   

  	
  61

  
	
  5.01

  	
  Conditions of Initial Credit Extension

  	
   

  	
  61

  

 

ii

 

	
  5.02

  	
  Conditions to all Credit Extensions

  	
   

  	
  62

  
	
  ARTICLE VI REPRESENTATIONS
  AND WARRANTIES

  	
   

  	
  63

  
	
  6.01

  	
  Existence, Qualification and Power

  	
   

  	
  63

  
	
  6.02

  	
  Authorization; No Contravention

  	
   

  	
  64

  
	
  6.03

  	
  Financial Statements

  	
   

  	
  64

  
	
  6.04

  	
  No Material Adverse Effect

  	
   

  	
  65

  
	
  6.05

  	
  Ownership of Property; Liens

  	
   

  	
  65

  
	
  6.06

  	
  Litigation

  	
   

  	
  65

  
	
  6.07

  	
  Taxes

  	
   

  	
  65

  
	
  6.08

  	
  Government Regulation

  	
   

  	
  66

  
	
  6.09

  	
  Employee Benefit Plans

  	
   

  	
  66

  
	
  6.10

  	
  Environmental Protection

  	
   

  	
  66

  
	
  6.11

  	
  Disclosure

  	
   

  	
  67

  
	
  6.12

  	
  Representations as to Foreign Obligors

  	
   

  	
  67

  
	
  6.13

  	
  Anti-Terrorism Laws

  	
   

  	
  68

  
	
  ARTICLE VII AFFIRMATIVE
  COVENANTS

  	
   

  	
  68

  
	
  7.01

  	
  Financial Statements and Other Reports

  	
   

  	
  68

  
	
  7.02

  	
  Preservation of Existence, Etc.

  	
   

  	
  72

  
	
  7.03

  	
  Payment of Taxes and Claims; Tax Consolidation

  	
   

  	
  72

  
	
  7.04

  	
  Maintenance of Properties; Insurance

  	
   

  	
  73

  
	
  7.05

  	
  Inspection Rights

  	
   

  	
  73

  
	
  7.06

  	
  Compliance with Laws

  	
   

  	
  73

  
	
  7.07

  	
  Additional Subsidiary Guarantors

  	
   

  	
  73

  
	
  7.08

  	
  Transactions with Affiliates

  	
   

  	
  74

  
	
  7.09

  	
  Conduct of Business

  	
   

  	
  74

  
	
  7.10

  	
  Fiscal Year

  	
   

  	
  74

  
	
  7.11

  	
  Use of Proceeds

  	
   

  	
  74

  
	
  ARTICLE VIII NEGATIVE
  COVENANTS

  	
   

  	
  74

  
	
  8.01

  	
  Indebtedness

  	
   

  	
  74

  
	
  8.02

  	
  Liens

  	
   

  	
  75

  
	
  8.03

  	
  Priority Indebtedness

  	
   

  	
  75

  
	
  8.04

  	
  Investments; Joint Ventures

  	
   

  	
  75

  
	
  8.05

  	
  Restricted Payments

  	
   

  	
  76

  
	
  8.06

  	
  Financial Covenants

  	
   

  	
  77

  
	
  8.07

  	
  Fundamental Changes; Asset Sales

  	
   

  	
  77

  
	
  8.08

  	
  Amendment of Certain Documents

  	
   

  	
  77

  
	
  ARTICLE IX EVENTS OF DEFAULT
  AND REMEDIES

  	
   

  	
  78

  
	
  9.01

  	
  Events of Default

  	
   

  	
  78

  
	
  9.02

  	
  Remedies Upon Event of Default

  	
   

  	
  79

  
	
  9.03

  	
  Application of Funds

  	
   

  	
  80

  
	
  ARTICLE X ADMINISTRATIVE
  AGENT

  	
   

  	
  81

  
	
  10.01

  	
  Appointment and Authority

  	
   

  	
  81

  
	
  10.02

  	
  Rights as a Lender

  	
   

  	
  81

  
	
  10.03

  	
  Exculpatory Provisions

  	
   

  	
  81

  
	
  10.04

  	
  Reliance by Administrative Agent

  	
   

  	
  82

  
	
  10.05

  	
  Delegation of Duties

  	
   

  	
  82

  
	
  10.06

  	
  Resignation of Administrative Agent

  	
   

  	
  83

  
	
  10.07

  	
  Non-Reliance on Administrative Agent and Other Lenders

  	
   

  	
  83

  
	
  10.08

  	
  No Other Duties, Etc.

  	
   

  	
  84

  
	
  10.09

  	
  Administrative Agent May File Proofs of Claim

  	
   

  	
  84

  
	
  10.10

  	
  Guaranty Matters

  	
   

  	
  84

  

 

iii

 

	
  ARTICLE XI
  MISCELLANEOUS

  	
   

  	
  85

  
	
  11.01

  	
  Amendments, Etc.

  	
   

  	
  85

  
	
  11.02

  	
  Notices; Effectiveness; Electronic Communication

  	
   

  	
  86

  
	
  11.03

  	
  No Waiver; Cumulative Remedies

  	
   

  	
  87

  
	
  11.04

  	
  Expenses; Indemnity; Damage Waiver

  	
   

  	
  88

  
	
  11.05

  	
  Payments Set Aside

  	
   

  	
  89

  
	
  11.06

  	
  Successors and Assigns

  	
   

  	
  90

  
	
  11.07

  	
  Treatment of Certain Information; Confidentiality

  	
   

  	
  93

  
	
  11.08

  	
  Right of Setoff

  	
   

  	
  94

  
	
  11.09

  	
  Interest Rate Limitation

  	
   

  	
  94

  
	
  11.10

  	
  Counterparts; Integration; Effectiveness

  	
   

  	
  94

  
	
  11.11

  	
  Survival of Representations and Warranties

  	
   

  	
  95

  
	
  11.12

  	
  Severability

  	
   

  	
  95

  
	
  11.13

  	
  Replacement of Lenders

  	
   

  	
  95

  
	
  11.14

  	
  Governing Law; Jurisdiction; Etc.

  	
   

  	
  96

  
	
  11.15

  	
  Waiver of Jury Trial

  	
   

  	
  97

  
	
  11.16

  	
  USA PATRIOT Act Notice

  	
   

  	
  97

  
	
  11.17

  	
  Judgment Currency

  	
   

  	
  97

  
	
  11.18

  	
  No Advisory or Fiduciary Relationship

  	
   

  	
  98

  
	
  11.19

  	
  Termination of Existing Credit Agreement

  	
   

  	
  98

  

 

iv

 

SCHEDULES

 

1.01                                   Mandatory Cost
Formulae

2.01                                   Commitments and
Applicable Percentages

6.01(c)                     Subsidiaries

6.06                                   Litigation

8.04                                   Existing
Investments

11.02                             Administrative
Agent’s Office; Certain Addresses for Notices

 

EXHIBITS

Form of

 

A                                              Committed Loan
Notice

B                                                Swing Line Loan
Notice

C                                                Revolving Note

D                                               Swing Line Note

E                                                 Compliance
Certificate

F                                                 Assignment and
Assumption

G                                                Joinder
Agreement

H                                               Designated Borrower
Request and Assumption Agreement

I                                                    Designated
Borrower Notice

 

v

 

CREDIT AGREEMENT

 

This
CREDIT AGREEMENT (this “Agreement”) is entered into as of August 13,
2010,  among AMPHENOL CORPORATION,  a  Delaware
corporation (the “Company”), certain Subsidiaries of the Company party
hereto pursuant to Section 2.14 (each a “Designated Borrower”
and, together with the Company, the “Borrowers” and, each a “Borrower”),
certain Subsidiaries of the Company from time to time party hereto (each a “Subsidiary
Guarantor” and together with the Company, the “Guarantors”), each
lender from time to time party hereto (collectively, the “Lenders” and
individually, a “Lender”), and BANK OF AMERICA, N.A.,  as Administrative Agent, Swing Line Lender and L/C Issuer.

 

The
Company has requested that the Lenders provide a revolving credit facility, and
the Lenders are willing to do so on the terms and conditions set forth herein.

 

In
consideration of the mutual covenants and agreements herein contained, the
parties hereto covenant and agree as follows:

 

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

 

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

 

“Accounts
Receivable Facility” means the Existing A/R Facility and any accounts
receivable financing program entered into by the Company and/or any of its Subsidiaries
on terms customary for accounts receivable financings; provided, in each
case, that there is no recourse thereunder against the Company or any of its
Subsidiaries for any default by any account obligor in the payment of its
obligations in connection with the accounts receivable subject to such program,
except to the extent that such recourse is limited substantially to the same
extent as under the Existing A/R Facility as in effect on the Closing Date; provided,
further, that any accounts receivable financing program shall cease to
constitute an “Accounts Receivable Facility” in the event the attributes
described in the foregoing proviso cease to exist with regard to such program.

 

“Accounts Receivable Facility Amount” means, at any
time, the principal component of financing then outstanding under any Accounts
Receivable Facility.

 

“Acquisition”
means the acquisition by the Company or any of its Subsidiaries (by purchase or
otherwise) in a single transaction or in a series of related transactions, of
all or substantially all of the business, property or fixed assets of, or at
least a majority of the stock or other evidence of beneficial ownership of, any
Person or any division, business unit or line of business of any Person.

 

“Administrative
Agent” means Bank of America in its capacity as administrative agent under
any of the Loan Documents, or any successor administrative agent.

 

“Administrative
Agent’s Office” means, with respect to any currency, the Administrative
Agent’s address and, as appropriate, account as set forth on Schedule 11.02
with respect to such currency, or such other address or account with respect to
such currency as the Administrative Agent may from time to time notify to the
Company and the Lenders.

 

“Administrative
Questionnaire” means an Administrative Questionnaire in a form supplied by
the Administrative Agent.

 

 

“Affiliate”,
as applied to any Person, means any other Person directly or indirectly
controlling, controlled by, or under common control with, that Person. For the
purposes of this definition, “control” (including, with correlative meanings,
the terms “controlling”, “controlled by” and “under common control with”), as
applied to any Person, means the possession, directly or indirectly, of the
power to (i) vote 10% or more of the Voting Stock of such Person or (ii) direct
or cause the direction of the management and policies of that Person, whether
through the ownership of voting securities or by contract or otherwise.

 

“Aggregate
Commitments” means the Commitments of all the Lenders.  The aggregate principal amount of the
Aggregate Commitments in effect on the Closing Date is ONE BILLION DOLLARS
($1,000,000,000).

 

“Agreement”
means this Credit Agreement.

 

“Alternative
Currency” means each of Euro, Sterling, Yen  and
each other currency (other than Dollars) that is approved in accordance with Section 1.05.

 

“Alternative
Currency Equivalent” means, at any time, with respect to any amount
denominated in Dollars, the equivalent amount thereof in the applicable
Alternative Currency as determined by the Administrative Agent or the L/C
Issuer, as the case may be, at such time on the basis of the Spot Rate
(determined in respect of the most recent Revaluation Date) for the purchase of
such Alternative Currency with Dollars.

 

“Alternative
Currency Sublimit” means an amount equal to the lesser of the Aggregate
Commitments and $100,000,000.  The
Alternative Currency Sublimit is part of, and not in addition to, the Aggregate
Commitments.

 

“Applicable
Foreign Obligor Documents” has the meaning specified in Section 6.12(a).

 

“Applicable
Percentage” means with respect to any Lender at any time, the percentage of
the Aggregate Commitments represented by such Lender’s Commitment at such
time.  If the Commitment of each Lender
to make Loans and the obligation of the L/C Issuer to make L/C Credit
Extensions have been terminated pursuant to Section 9.02 or if the
Aggregate Commitments have expired, then the Applicable Percentage of each
Lender shall be determined based on the Applicable Percentage of such Lender
most recently in effect, giving effect to any subsequent assignments.  The initial Applicable Percentage of each
Lender is set forth opposite the name of such Lender on Schedule 2.01
or in the Assignment and Assumption pursuant to which such Lender becomes a
party hereto, as applicable.

 

“Applicable
Rate” means, as of any date, the following percentage per annum, based upon
(a) the most recently publicly announced Debt Rating or (b) the Consolidated
Leverage Ratio as set forth in the most recent Compliance Certificate received
by the Administrative Agent pursuant to Section 7.01(c) prior to
such date, whichever results in the lower Applicable Rate determined in
accordance with the table set forth below:

 

2

 

Applicable Rate

 

	
  Pricing
  Level

  	
   

  	
  Debt Rating or

  Consolidated

  Leverage Ratio

  	
   

  	
  Commitment

  Fee

  	
   

  	
  Eurocurrency Rate

  Loans and Letter of

  Credit Fee

  	
   

  	
  Base Rate

  Loans

  	
   

  
	
  1

  	
   

  	
  > BBB+ / Baa1 or

  < 0.5:1.0

  	
   

  	
  0.25

  	
  %

  	
  1.75

  	
  %

  	
  0.75

  	
  %

  
	
  2

  	
   

  	
  BBB+ / Baa1 or <

  1.0:1.0 but >

  0.5:1.0

  	
   

  	
  0.30

  	
  %

  	
  2.00

  	
  %

  	
  1.00

  	
  %

  
	
  3

  	
   

  	
  BBB / Baa2 or

  < 1.5:1.0 but

  > 1.0:1.0

  	
   

  	
  0.35

  	
  %

  	
  2.25

  	
  %

  	
  1.25

  	
  %

  
	
  4

  	
   

  	
  BBB- / Baa3 or

  < 2.0:1.0 but

  > 1.5:1.0

  	
   

  	
  0.45

  	
  %

  	
  2.50 

  	
  %

  	
  1.50

  	
  %

  
	
  5

  	
   

  	
  BB+ / Ba1 or

  < 2.5:1.0 but

  > 2.0:1.0

  	
   

  	
  0.55

  	
  %

  	
  3.00

  	
  %

  	
  2.00

  	
  %

  
	
  6

  	
   

  	
  < BB/Ba2 or

  > 2.50:1.0

  	
   

  	
  0.70

  	
  %

  	
  3.25

  	
  %

  	
  2.25

  	
  %

  

 

The
Applicable Rate as of any date shall be determined based upon whichever of the
Debt Rating or the Consolidated Leverage Ratio as of such date results in the
lower Applicable Rate; provided, however, if the Debt Rating is more
than two Pricing Levels below the Consolidated Leverage Ratio at any time, the
Applicable Rate shall be based on the Pricing Level two levels above the Debt
Rating at such time.  Subject to the
proviso in the preceding sentence, upon notice by the Company of a change in
the Debt Rating pursuant to Section 7.01(k)(i) or receipt by the
Administrative Agent of a Compliance Certificate pursuant to Section 7.01(c)
indicating a change in the Consolidated Leverage Ratio, the Applicable Rate
shall be determined based upon whichever of the most recently publicly
announced Debt Rating or the Consolidated Leverage Ratio identified in the most
recently delivered Compliance Certificate delivered pursuant to Section
7.01(c) results in the lower Applicable Rate, and any change to the
Applicable Rate as a result thereof shall be effective as of the first Business
Day immediately following the date of delivery by the Company to the
Administrative Agent of the notice of a change in the Debt Rating pursuant to Section 7.01(k)(i)
or as of the first Business Day immediately following the date a Compliance
Certificate is delivered pursuant to Section 7.01(c), as the case
may be.  Notwithstanding the foregoing,
the Applicable Rate in effect from the Closing Date through the first Business
Day immediately following the earlier of (y) the date a Compliance Certificate
is required to be delivered pursuant to Section 7.01(c) for the fiscal
quarter ending June 30, 2010 or (z) the date of delivery by the Company to the
Administrative Agent of notice of a change in Debt Rating pursuant to Section
7.01(k)(i) shall be determined based upon Pricing Level 3.

 

“Applicable
Time” means, with respect to any borrowings and payments in any Alternative
Currency, the local time in the place of settlement for such Alternative
Currency as may be determined by the Administrative Agent or the L/C Issuer, as
the case may be, to be necessary for timely settlement on the relevant date in
accordance with normal banking procedures in the place of payment.

 

“Applicant
Borrower” has the meaning specified in Section 2.14.

 

3

 

“Approved
Fund” means any Fund that is administered or managed by (a) a Lender, (b)
an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.

 

“Asset
Sale” means the sale by the Company or any of its Subsidiaries to any Third
Party of (i) any of the stock or other ownership interests of any of the
Company’s Subsidiaries, (ii) substantially all of the assets of any
division or line of business of the Company or any of its Subsidiaries, or
(iii) any other assets (whether tangible or intangible) of the Company or
any of its Subsidiaries outside of the ordinary course of business (other than (a) accounts
receivable sold pursuant to any Accounts Receivable Facility permitted by Section
8.01(c)(ii) and (b) any other such assets to the extent that the aggregate
value of such assets sold in any single transaction or related series of
transactions is equal to $1,000,000 or less).

 

“Assignee
Group” means two or more Eligible Assignees that are Affiliates of one
another or two or more Approved Funds managed by the same investment advisor.

 

“Assignment
and Assumption” means an assignment and assumption entered into by a Lender
and an Eligible Assignee (with the consent of any party whose consent is
required by Section 11.06(b)), and accepted by the Administrative
Agent, in substantially the form of Exhibit F or any other form
approved by the Administrative Agent.

 

“Attributable
Indebtedness” means, on any date, (a) in respect of any Capital Lease of
any Person, the capitalized amount thereof that would appear on a balance sheet
of such Person prepared as of such date in accordance with GAAP, (b) in respect
of any Synthetic Lease Obligation, the capitalized amount of the remaining
lease payments under the relevant lease that would appear on a balance sheet of
such Person prepared as of such date in accordance with GAAP if such lease were
accounted for as a Capital Lease and (c) in respect of any Accounts Receivable
Facility, the Accounts Receivable Facility Amount.

 

“Audited
Financial Statements” means the audited consolidated balance sheet of the
Company and its Subsidiaries for the fiscal year ended December 31, 2009,
and the related consolidated statements of income or operations, shareholders’
equity and cash flows for such fiscal year of the Company and its Subsidiaries,
including the notes thereto.

 

“Availability
Period” means the period from and including the Closing Date to the
earliest of (a) the Maturity Date, (b) the date of termination of the Aggregate
Commitments pursuant to Section 2.06, and (c) the date of
termination of the commitment of each Lender to make Loans and of the
obligation of the L/C Issuer to make L/C Credit Extensions pursuant to Section 9.02.

 

“Bank
of America” means Bank of America, N.A. and its successors.

 

“BAS”
means Banc of America Securities LLC and its successors.

 

“Base
Rate” means for any day a fluctuating rate per annum equal to the highest
of (a) the Federal Funds Rate plus 1/2 of 1%, (b) the rate of interest in
effect for such day as publicly announced from time to time by Bank of America
as its “prime rate” and (c) the Eurocurrency Rate plus 1.00%.  The “prime rate” is a rate set by Bank of
America based upon various factors including Bank of America’s costs and
desired return, general economic conditions and other factors, and is used as a
reference point for pricing some loans, which may be priced at, above, or below
such announced rate.  Any change in such
rate announced by Bank of America shall take effect at the opening of business
on the day specified in the public announcement of such change.

 

4

 

“Base
Rate Committed Loan” means a Committed Loan that is a Base Rate Loan.

 

“Base
Rate Loan” means a Loan that bears
interest based on the Base Rate.  All
Base Rate Loans shall be denominated in Dollars.

 

“Borrower”
and “Borrowers” each has the meaning specified in the introductory
paragraph hereto.

 

“Borrower
Materials” has the meaning specified in Section 7.01.

 

“Borrowing”
means a Committed Borrowing or a Swing Line Borrowing, as the context may
require.

 

“Business
Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact
closed in, New York, New York or the state where the Administrative Agent’s
Office with respect to Obligations denominated in Dollars is located and:

 

(a)           if such day relates to any interest
rate settings as to a Eurocurrency Rate Loan denominated in Dollars, any
fundings, disbursements, settlements and payments in Dollars in respect of any
such Eurocurrency Rate Loan, or any other dealings in Dollars to be carried out
pursuant to this Agreement in respect of any such Eurocurrency Rate Loan, means
any such day on which dealings in deposits in Dollars are conducted by and
between banks in the London interbank eurodollar market;

 

(b)           if such day relates to any interest
rate settings as to a Eurocurrency Rate Loan denominated in Euro, any fundings,
disbursements, settlements and payments in Euro in respect of any such
Eurocurrency Rate Loan, or any other dealings in Euro to be carried out
pursuant to this Agreement in respect of any such Eurocurrency Rate Loan, means
a TARGET Day;

 

(c)           if such day relates to any interest
rate settings as to a Eurocurrency Rate Loan denominated in a currency other
than Dollars or Euro, means any such day on which dealings in deposits in the
relevant currency are conducted by and between banks in the London or other
applicable offshore interbank market for such currency; and

 

(d)           if such day relates to any fundings,
disbursements, settlements and payments in a currency other than Dollars or
Euro in respect of a Eurocurrency Rate Loan denominated in a currency other
than Dollars or Euro, or any other dealings in any currency other than Dollars
or Euro to be carried out pursuant to this Agreement in respect of any such
Eurocurrency Rate Loan (other than any interest rate settings), means any such
day on which banks are open for foreign exchange business in the principal
financial center of the country of such currency.

 

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

 

“Cash
Collateralize” means to pledge and deposit with or deliver to the
Administrative Agent, for the benefit of the Administrative Agent, L/C Issuer
or Swing Line Lender (as applicable) and the Lenders, as collateral for L/C
Obligations, Obligations in respect of Swing Line Loans or obligations of
Lenders to fund participations in respect of either thereof (as the context may
require), cash or deposit account balances or, if the L/C Issuer or Swing Line
Lender benefitting from such collateral shall agree in its sole 

 

5

 

discretion,
other credit support, in each case pursuant to documentation in form and
substance satisfactory to (a) the Administrative Agent and (b) the L/C Issuer
or the Swing Line Lender (as applicable). 
“Cash Collateral” shall have a meaning correlative to the
foregoing and shall include the proceeds of such cash collateral and other
credit support.

 

“Cash
Equivalents” means (i) marketable securities (a) issued or directly and
unconditionally guaranteed as to interest and principal by the United States
Government or (b) issued by any agency of the United States the obligations of
which are backed by the full faith and credit of the United States, in each
case maturing within 24 months after the date of acquisition thereof; (ii)
marketable direct obligations issued by any state of the United States of
America or any political subdivision of any such state or any public
instrumentality thereof, in each case maturing within 24 months after the date
of acquisition thereof and having, at the time of the acquisition thereof, an
investment grade rating generally obtainable from either S&P or Moody’s;
(iii) commercial paper maturing no more than 12 months from the date of
creation thereof and having, at the time of the acquisition thereof, a rating
of at least A-2 from S&P or at least P-2 from Moody’s; (iv) domestic and
Eurodollar certificates of deposit or bankers’ acceptances maturing within 24
months after the date of acquisition thereof and issued or accepted by any
Lender or by any other commercial bank that has combined capital and surplus of
not less than $250,000,000; (v) repurchase agreements with a term of not more
than 30 days for underlying securities of the types described in clauses (i),
(ii) and (iv) above entered into with any commercial bank meeting the
requirements specified in clause (iv) above or with any securities dealer of
recognized national standing, (vi) shares of investment companies that are
registered under the Investment Company Act of 1940 and that invest solely in
one or more of the types of investments referred to in clauses (i) through (v)
above, and (vii) in the case of any Foreign Subsidiary, high quality,
short-term liquid Investments made by such Foreign Subsidiary in the ordinary
course of managing its surplus cash position in a manner consistent with past
practices.

 

“Change
in Law” means the occurrence, after the date of this Agreement (or, in the
case of an Eligible Assignee, after the date such Eligible Assignee becomes a
party to this Agreement), of any of the following: (a) the adoption or taking
effect of any law, rule, regulation or treaty, (b) any change in any law, rule,
regulation or treaty or in the administration, interpretation or application
thereof by any Governmental Authority or (c) the making or issuance of any
request, guideline or directive (whether or not having the force of law) by any
Governmental Authority; provided, however, for purposes of this
Agreement, the Dodd-Frank Wall Street Reform and Consumer Protection Act and
all requests, guidelines or directives in connection therewith are deemed to have
gone into effect and adopted after the date of this Agreement.

 

“Change
of Control” means an event or series of events by which:

 

(a)           any “person” or “group” (as such
terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act
of 1934, but excluding any employee benefit plan of such person or its
subsidiaries, and any person or entity acting in its capacity as trustee, agent
or other fiduciary or administrator of any such plan) becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act
of 1934, except that a person or group shall be deemed to have “beneficial
ownership” of all securities that such person or group has the right to acquire
(such right, an “option right”), whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of 35%
or more of the Voting Stock of the Company on a fully-diluted basis (and taking
into account all such securities that such person or group has the right to
acquire pursuant to any option right); or

 

(b)           during any period of 12 consecutive
months, a majority of the members of the board of directors or other equivalent
governing body of the Company cease to be composed of 

 

6

 

individuals
(i) who were members of that board or equivalent governing body on the first
day of such period, (ii) whose election or nomination to that board or
equivalent governing body was approved by individuals referred to in
clause (i) above constituting at the time of such election or nomination
at least a majority of that board or equivalent governing body or (iii) whose
election or nomination to that board or other equivalent governing body was
approved by individuals referred to in clauses (i) and (ii) above
constituting at the time of such election or nomination at least a majority of
that board or equivalent governing body.

 

“Closing
Date” means August 13, 2010.

 

“Commitment”
means, as to each Lender, its obligation to (a) make Committed Loans to the
Borrowers pursuant to Section 2.01, (b) purchase participations in
L/C Obligations, and (c) purchase participations in Swing Line Loans, in an
aggregate principal amount at any one time outstanding not to exceed the Dollar
amount set forth opposite such Lender’s name on Schedule 2.01 or in
the Assignment and Assumption pursuant to which such Lender becomes a party
hereto, as applicable, as such amount may be adjusted from time to time in
accordance with this Agreement.

 

“Committed
Borrowing” means a borrowing consisting of simultaneous Committed Loans of
the same Type, in the same currency and, in the case of Eurocurrency Rate
Loans, having the same Interest Period made by each of the Lenders pursuant to Section 2.01.

 

“Committed
Loan” has the meaning specified in Section 2.01.

 

“Committed
Loan Notice” means a notice of (a) a Committed Borrowing, (b) a conversion
of Committed Loans from one Type to the other, or (c) a continuation of
Eurocurrency Rate Loans, pursuant to Section 2.02(a), which, if in
writing, shall be substantially in the form of Exhibit A.

 

“Commitment
Fee” has the meaning specified in Section 2.09(a).

 

“Company”
has the meaning specified in the introductory paragraph hereto.

 

“Compliance
Certificate” means a certificate substantially in the form of Exhibit E.

 

“Consolidated
Corporation” has the meaning specified in Section 6.07.

 

“Consolidated
EBITDA” means, for any period, for the Company and its Subsidiaries on a
consolidated basis, an amount equal to Consolidated Net Income for such period plus
(a) the following to the extent deducted in calculating such Consolidated Net
Income: (i) Consolidated Interest Expense for such period, (ii) the provision
for Federal, state, local and foreign income taxes payable by the Company and
its Subsidiaries for such period, (iii) depreciation and amortization expense,
(iv) other non-cash charges for such period, (v) all non-cash losses for such
period, (vi) any expenses or charges incurred in connection with any
Equity Issuances (including upfront fees payable in respect of bank
facilities), (vii) any restructuring charges or reserves or non-recurring cash
charges in an aggregate amount in the case of the cash portion thereof not to
exceed $5,000,000 in any consecutive twelve month period ending on any date of
determination, (viii) any fees and expenses related to Acquisitions and
Investments permitted hereunder and (ix) any deduction for minority interest
expense, minus (b) to the extent included in calculating Consolidated
Net Income for such period, all non-cash income or gains for such period, all
as determined in accordance with GAAP.

 

“Consolidated
Funded Indebtedness” means, without duplication, as of any date of
determination, (a) the aggregate stated balance sheet amount of all
Indebtedness of the Company and its Subsidiaries 

 

7

 

under
clauses (a), (b) and (c) of the definition of “Indebtedness” (but only to the
extent, in the case of said clause (c), of any drawings honored under letters
of credit and not yet reimbursed by the Company or any of its Subsidiaries), as
determined on a consolidated basis in accordance with GAAP plus (b) the
Accounts Receivable Facility Amount.

 

“Consolidated
Interest Expense” means, for any period, for the Company and its Subsidiaries
on a consolidated basis, the sum of all interest, premium payments, debt
discount, fees, charges and related expenses of the Company and its
Subsidiaries in connection with borrowed money (including capitalized interest
and other fees and charges incurred under any Accounts Receivable Facility) or
in connection with the deferred purchase price of assets, but excluding,
however, any interest expense not payable in cash during such period, in each
case to the extent treated as interest in accordance with GAAP.

 

“Consolidated
Interest Coverage Ratio” means, as of the last day of any fiscal quarter of
the Company, the ratio of (a) Consolidated EBITDA for the period of the four
prior fiscal quarters ending on such date to (b) Consolidated Interest Expense
for such period, each as determined on a consolidated basis in accordance with
GAAP.

 

“Consolidated
Leverage Ratio” means, as of the last day of any fiscal quarter of the
Company, the ratio of (a) Consolidated Funded Indebtedness as of such date  to  (b)
Consolidated EBITDA for the period of the four fiscal quarters ended on such
date.

 

“Consolidated
Net Income” means, for any period, for the Company and its Subsidiaries on
a consolidated basis, the net income of the Company and its Subsidiaries
(excluding extraordinary gains and extraordinary losses) for that period,
determined on a consolidated basis in accordance with GAAP.

 

“Consolidated
Net Tangible Assets” means the aggregate amount of assets included on the
consolidated balance sheet of the Company as of the most recent fiscal quarter
end for which such consolidated balance sheet is available, minus (a) all
current liabilities, except for current maturities of long-term debt and
current maturities of obligations under Capital Leases, and (b) total goodwill
and other intangible assets, all as set forth on the most recent consolidated
balance sheet of the Company and its consolidated Subsidiaries and computed in
accordance with GAAP.

 

“Consolidated
Total Assets” means, as of any date of determination, all assets of the
Company and its Subsidiaries as determined in accordance with GAAP.

 

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

 

“Credit
Extension” means each of the following: (a) a Borrowing and (b) an L/C
Credit Extension.

 

“Debt
Rating” means, as of any date of determination, the rating as  determined by the Ratings Agencies (collectively, the “Debt
Ratings”) of the Company’s non-credit-enhanced, senior unsecured long-term
debt; provided that if a Debt Rating is issued by each of the Rating
Agencies and there is a split rating, then the higher of such Debt Ratings
shall apply (with the Debt Rating for Pricing Level 1 being the highest
and the Debt Rating for Pricing Level 6 being the lowest), unless there is
a split in Debt Ratings of more than one level, in which case the Pricing Level
that is one level lower than the level of the higher Debt Rating shall apply.

 

8

 

“Debtor
Relief Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of
creditors, moratorium, rearrangement, receivership, insolvency, reorganization,
or similar debtor relief Laws of the United States or other applicable
jurisdictions from time to time in effect and affecting the rights of creditors
generally.

 

“Default”
means any event or condition that constitutes an Event of Default or that, with
the giving of any notice, the passage of time, or both, would be an Event of
Default.

 

“Default
Rate” means (a) when used with respect to Obligations other than Letter of
Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the
Applicable Rate, if any, applicable to Base Rate Loans plus (iii) 2% per
annum; provided, however, that with respect to a Eurocurrency
Rate Loan, the Default Rate shall be an interest rate equal to the interest
rate (including any Applicable Rate and any Mandatory Cost) otherwise
applicable to such Eurocurrency Rate Loan plus 2% per annum, and (b) when used
with respect to Letter of Credit Fees, a rate equal to the Applicable Rate plus
2% per annum.

 

“Defaulting
Lender” means, subject to Section 2.16(b), any Lender (a) has failed
to perform any of its funding obligations hereunder, including in respect of
its Loans or participations in respect of Letters of Credit or Swing Line
Loans, within three (3) Business Days of the date required to be funded by it
hereunder, unless such obligation is the subject of a good faith dispute, (b) has
notified the Borrower or the Administrative Agent that it does not intend to
comply with its funding obligations or has made a public statement to that
effect with respect to its funding obligations hereunder or under other
agreements generally in which it commits to extend credit, (c) has failed,
within three (3) Business Days after request by the Administrative Agent, to
confirm in a manner satisfactory to the Administrative Agent that it will
comply with its funding obligations, unless such obligation is the subject of a
good faith dispute, or (d) has, or has a direct or indirect parent company that
has, (i) become the subject of a proceeding under any Debtor Relief Law, (ii)
had a receiver, conservator, trustee, administrator, assignee for the benefit of
creditors or similar Person charged with reorganization or liquidation of its
business or a custodian appointed for it or (iii) taken any action in
furtherance of, or indicated its consent to, approval of or acquiescence in any
such proceeding or appointment; provided, that, a Lender shall not be a
Defaulting Lender solely by virtue of the ownership or acquisition of any
Equity Interests in that Lender or any direct or indirect parent company
thereof by a Governmental Authority.

 

“Designated
Borrower” has the meaning specified in the introductory paragraph hereto.

 

“Designated
Borrower Notice” has the meaning specified in Section 2.14.

 

“Designated
Borrower Obligations” means all advances to, and debts, liabilities,
obligations, covenants and duties of, the Designated Borrowers arising under
any Loan Document or otherwise with respect to any Loan or Letter of Credit,
whether direct or indirect (including those acquired by assumption), absolute
or contingent, due or to become due, now existing or hereafter arising and
including interest and fees that accrue after the commencement by or against
any Designated Borrower or any Affiliate thereof of any proceeding under any
Debtor Relief Laws naming such Person as the debtor in such proceeding,
regardless of whether such interest and fees are allowed claims in such
proceeding.

 

“Designated
Borrower Request and Assumption Agreement” has the meaning specified in Section 2.14.

 

“Dollar”
and “$” mean lawful money of the United States.

 

“Dollar
Equivalent” means, at any time, (a) with respect to any amount
denominated in Dollars, such amount, and (b) with respect to any amount
denominated in any Alternative Currency, the equivalent 

 

9

 

amount
thereof in Dollars as determined by the Administrative Agent or the L/C Issuer,
as the case may be, at such time on the basis of the Spot Rate (determined in
respect of the most recent Revaluation Date) for the purchase of Dollars with
such Alternative Currency.

 

“Domestic
Subsidiary” means any Subsidiary that is organized under the laws of any
political subdivision of the United States.

 

“Eligible
Assignee” means (a) a Lender; (b) an Affiliate of a Lender (unless a
transfer to such Affiliate would result in increased costs to any Borrower);
(c) an Approved Fund; and (d) any other Person (other than a natural person)
approved by (i) the Administrative Agent, the L/C Issuer and the Swing Line
Lender, and (ii) unless an Event of Default has occurred and is continuing, the
Company (each such approval not to be unreasonably withheld); provided
that notwithstanding the foregoing, “Eligible Assignee” shall not include (A)
the Company or any of the Company’s Affiliates or Subsidiaries or (B) any
Defaulting Lender or any of its Subsidiaries, or any direct or indirect parent
company of such Defaulting Lender, or any Person who, upon becoming a Lender
hereunder, would constitute any of the foregoing Persons described in this
clause (B); and provided  further, however, that an
Eligible Assignee shall include only a Lender, an Affiliate of a Lender or
another Person, which, through its Lending Offices, is capable of lending the
applicable Alternative Currencies to the relevant Borrowers without the
imposition of any additional Indemnified Taxes.

 

“EMU”
means the economic and monetary union in accordance with the Treaty of Rome
1957, as amended by the Single European Act 1986, the Maastricht Treaty of 1992
and the Amsterdam Treaty of 1998.

 

“EMU
Legislation” means the legislative measures of the European Council for the
introduction of, changeover to or operation of a single or unified European
currency.

 

“Environmental
Claims” means any and all administrative, regulatory or judicial actions,
suits, demands, demand letters, claims, liens, notices of noncompliance or
violation, investigations (other than internal reports prepared by the Company
or any of its Subsidiaries (i) in the ordinary course of such Person’s business
or (ii) as required in connection with a financing transaction or an
acquisition or disposition of real estate) or proceedings relating in any way
to any Environmental Law (for purposes of this definition, “Claims”),
including (a) any and all Claims by governmental or regulatory authorities for
enforcement, cleanup, removal, response, remedial or other actions or damages
pursuant to any applicable Environmental Law and (b) any and all Claims by any
Third Party seeking damages, contribution, indemnification, cost recovery,
compensation or injunctive relief resulting from Hazardous Materials or arising
from alleged injury or threat of injury to health, safety or the environment.

 

“Environmental
Laws” means any and all applicable present and future laws, statutes,
ordinances, rules, regulations, requirements, restrictions, permits, orders,
and determinations of any governmental authority that have the force and effect
of law, and that pertain to pollution (including hazardous, toxic or dangerous
substances), or protection of natural resources or the environment, whether
federal, state, or local, domestic or foreign including environmental response
laws such as the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended by the Superfund Amendments and
Reauthorization Act of 1986 and as the same may be further amended (hereinafter
collectively called “CERCLA”).

 

“Equity
Interests” means, with respect to any Person, all of the shares of capital
stock of (or other ownership or profit interests in) such Person, all of the
warrants, options or other rights for the purchase or acquisition from such
Person of shares of capital stock of (or other ownership or profit interests
in) such Person, and all of the other ownership or profit interests in such
Person (including partnership, 

 

10

 

member
or trust interests therein), whether voting or nonvoting, and whether or not
such shares, warrants, options, rights or other interests are outstanding on
any date of determination.

 

“Equity
Issuance” means any issuance by the Company or any Subsidiary to any Person
of shares of its Equity Interests, other than (a) any issuance of shares of its
Equity Interests pursuant to the exercise of options or warrants, (b) any
issuance of shares of its Equity Interests pursuant to the conversion of any
debt securities to equity or the conversion of any class equity securities to
any other class of equity securities, (c) any issuance of options or warrants
relating to its Equity Interests, (d) any issuance by the Company of shares of
its Equity Interests as consideration for a Permitted Acquisition and (e) any
issuance of shares of Equity Interests from a Subsidiary to the Company or any
other Subsidiary.  The term “Equity
Issuance” shall not be deemed to include any Asset Sale.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, and any
regulations promulgated thereunder.

 

“ERISA
Affiliate” means any trade or business (whether or not incorporated) under
common control with the Company or any of its Subsidiaries within the meaning
of Section 414(b) or (c) of the Internal Revenue Code or (for purposes of
provisions of the Internal Revenue Code relating to Section 412 of the Internal
Revenue Code) Section 414(m) or (o) of the Internal Revenue Code.

 

“ERISA
Event” means any of the following events or occurrences if such event or
occurrence could, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect:  (i) the
failure to make a required contribution to a Pension Plan; (ii) a withdrawal by
the Company, any of its Subsidiaries or any ERISA Affiliate from a Pension Plan
subject to Section 4063 of ERISA during a plan year in which it was a
substantial employer (as defined in Section 4001(a)(2) of ERISA), or a
cessation of operation which is treated as such a withdrawal under Section
4062(e) of ERISA; (iii) a complete or partial withdrawal by the Company, any of
its Subsidiaries or any ERISA Affiliate from a Multiemployer Plan or
notification that a Multiemployer Plan is in reorganization or is insolvent
pursuant to Section 4241 or 4245 of ERISA; (iv) the filing of a notice of
intent to terminate, the treatment of a Plan amendment as a termination under
Section 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC
to terminate, in each case with respect to a Pension Plan or Multiemployer
Plan; (v) an event or condition which might reasonably be expected to
constitute grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Pension Plan or Multiemployer Plan;
(vi) the imposition of any liability upon the Company, any of its Subsidiaries
or any ERISA Affiliate under Title IV of ERISA (other than with respect to PBGC
premiums due but not delinquent under Section 4007 of ERISA) upon the Company,
any of its Subsidiaries or any ERISA Affiliate; (vii) the imposition of a Lien
pursuant to Section 430(k) of the Internal Revenue Code or pursuant to ERISA
with respect to any Pension Plan; (viii) receipt from the Internal Revenue
Service of notice of the failure of any Pension Plan (or any other Plan
intended to qualify under Section 401(a) of the Internal Revenue Code) to
qualify under Section 401(a) of the Internal Revenue Code, or the failure of
any trust forming part of any Pension Plan to qualify for exemption from
taxation under Section 501(a) of the Internal Revenue Code; or (ix) the
violation of any applicable foreign law, or an event or occurrence that is
comparable to any of the foregoing events or occurrences, in either case with
respect to a Plan that is not subject to regulation under ERISA by reason of
Section 4(b)(4) of ERISA.

 

“Euro”
and “EUR” mean the lawful currency of the Participating Member States
introduced in accordance with the EMU Legislation.

 

“Eurocurrency
Rate” means:

 

11

 

(a) for any Interest Period with respect to a
Eurocurrency Rate Loan, the rate per annum equal to (i) the British
Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters
(or such other commercially available source providing quotations of BBA LIBOR
as may be designated by the Administrative Agent from time to time) at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, for deposits in the relevant currency
(for delivery on the first day of such Interest Period) with a term equivalent
to such Interest Period or (ii) if such rate is not available at such time
for any reason, the rate per annum determined by the Administrative Agent to be
the rate at which deposits in the relevant currency for delivery on the first
day of such Interest Period in Same Day Funds in the approximate amount of the
Eurocurrency Rate Loan being made, continued or converted and with a term
equivalent to such Interest Period would be offered by Bank of America’s London
Branch (or other Bank of America branch or Affiliate) to major banks in the
London or other offshore interbank market for such currency at their request at
approximately 11:00 a.m. (London time) two Business Days prior to the
commencement of such Interest Period; and

 

(b) for any interest rate calculation with
respect to a Base Rate Loan on any date, the rate per annum equal to (i) BBA
LIBOR, at approximately 11:00 a.m. London time determined two London
Banking Days prior to such date for Dollar deposits being delivered in the
London interbank market for a term of one month commencing that day or (ii) if
such published rate is not available at such time for any reason, the rate per
annum determined by the Administrative Agent to be the rate at which deposits
in Dollars for delivery on the date of determination in same day funds in the
approximate amount of the Base Rate Loan being made or maintained with a term
equal to one month would be offered by Bank of America’s London Branch to major
banks in the London interbank eurodollar market at their request at the date
and time of determination.

 

“Eurocurrency
Rate Loan” means a Committed Loan that bears interest at a rate based on
clause (a) of the definition of “Eurocurrency Rate.”  Eurocurrency Rate Loans may be denominated in
Dollars or in an Alternative Currency. 
All Committed Loans denominated in an Alternative Currency must be
Eurocurrency Rate Loans.

 

“Event
of Default” has the meaning specified in Section 9.01.

 

“Excluded
Taxes” means, with respect to the Administrative Agent, any Lender, the L/C
Issuer or any other recipient of any payment to be made by or on account of any
obligation of any Borrower hereunder, (a) taxes imposed on or measured by
its overall net income (however denominated), and franchise taxes imposed on it
(in lieu of net income taxes), by the jurisdiction (or any political
subdivision thereof) under the laws of which such recipient is organized or in
which its principal office is located or, in the case of any Lender, in which
its applicable Lending Office is located, (b) any branch profits taxes
imposed by the United States or any similar tax imposed by any other
jurisdiction in which such Borrower is located and (c) except as provided
in the following sentence, in the case of a Foreign Lender (other than an
assignee pursuant to a request by the Company under Section 11.13),
any withholding tax that is imposed on amounts payable to such Foreign Lender
at the time such Foreign Lender becomes a party hereto (or designates a new
Lending Office) or is attributable to such Foreign Lender’s failure or
inability (other than as a result of a Change in Law) to comply with Section 3.01(e),
except 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 applicable Borrower with respect to such
withholding tax pursuant to Section 3.01(a).  Notwithstanding anything to the contrary
contained in this definition, “Excluded Taxes” shall not include any
withholding tax imposed at any time on payments made by or on behalf of a
Foreign Obligor to any Lender hereunder or under any other Loan Document, provided
that such Lender shall have complied with the last paragraph of Section 3.01(e).

 

12

 

“Existing
A/R Facility” means that certain Receivables Purchase Agreement dated as of
July 31, 2006 by and among Amphenol Funding Corp., a Delaware corporation,
as seller, the Company, individually and as initial servicer, Atlantic Asset
Securitization LLC, as conduit purchaser and Credit Agricole Corporate and
Investment Bank New York Branch (f/k/a Calyon New York Branch), as
administrative agent, as the same may be amended, modified or supplemented from
time to time in accordance with the terms hereof and thereof.

 

“Existing
Credit Agreement” means that certain Credit Agreement dated as of July 15,
2005 among the Company, certain of its Subsidiaries, Bank of America, N.A., as
administrative agent, and the other lenders party thereto.

 

“Federal
Funds Rate” means, for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of
the Federal Reserve System arranged by Federal funds brokers on such day, as
published by the Federal Reserve Bank of New York on the Business Day next
succeeding such day; provided that (a) if such day is not a
Business Day, the Federal Funds Rate for such day shall be such rate on such
transactions on the next preceding Business Day as so published on the next
succeeding Business Day, and (b) if no such rate is so published on such
next succeeding Business Day, the Federal Funds Rate for such day shall be the
average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%)
charged to Bank of America on such day on such transactions as determined by
the Administrative Agent.

 

“Fee
Letter” means the letter agreement, dated July 9, 2010, among the
Company, Bank of America and BAS.

 

“Foreign
Lender” means any Lender that is organized under the laws of a jurisdiction
other than that in which the applicable Borrower is resident for tax
purposes.  For purposes of this
definition, the United States, each State thereof and the District of Columbia
shall be deemed to constitute a single jurisdiction.

 

“Foreign
Obligor” means a Designated Borrower that is a Foreign Subsidiary.

 

“Foreign
Subsidiary” means a Subsidiary that is not a Domestic Subsidiary.

 

“FRB”
means the Board of Governors of the Federal Reserve System of the United
States.

 

“Fronting Exposure” means, at any time there
is a Defaulting Lender, (a) with respect to the L/C Issuer, such
Defaulting Lender’s Applicable Percentage of the outstanding L/C Obligations
other than L/C Obligations as to which such Defaulting Lender’s participation
obligation has been reallocated to other Lenders or Cash Collateralized in
accordance with the terms hereof and (b) with respect to the Swing Line
Lender, such Defaulting Lender’s Applicable Percentage of Swing Line Loans
other than Swing Line Loans as to which such Defaulting Lender’s participation
obligation has been reallocated to other Lenders or Cash Collateralized in
accordance with the terms hereof.

 

“Fully
Satisfied” means, with respect to the Obligations as of any date, that, as
of such date, (a) all principal of and interest accrued to such date which
constitute Obligations shall have been paid in full in cash, (b) all fees,
expenses and other amounts then due and payable which constitute Obligations
shall have been paid in cash, (c) all outstanding Letters of Credit shall
have been (i) terminated, (ii) fully Cash Collateralized or
(iii) secured by one or more letters of credit on terms and conditions,
and with one or more financial institutions, reasonably satisfactory to the L/C
Issuer and (d) the Commitments shall have expired or been terminated in
full.

 

13

 

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

 

“GAAP”
means generally accepted accounting principles in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board and the
American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or such other
principles as may be approved by a significant segment of the accounting profession
in the United States, that are applicable to the circumstances as of the date
of determination, consistently applied.

 

“Governmental
Authority” means the government of the United States or any other nation,
or of 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 (including
any supra-national bodies such as the European Union or the European Central
Bank).

 

“Guarantee”
means, as to any Person, any obligation of such Person guaranteeing or intended
to guarantee any Indebtedness of any other Person (the “Primary Obligor”)
in any manner, whether directly or indirectly, including, without limitation,
any obligation of such Person, whether or not contingent, (i) to purchase
any such Indebtedness or any property constituting direct or indirect security
therefor, (ii) to advance or supply funds (A) for the purchase or
payment of any such Indebtedness or (B) to maintain working capital or
equity capital of the Primary Obligor or otherwise to maintain the net worth or
solvency of the Primary Obligor, (iii) to purchase property, Equity
Interests or services primarily for the purpose of assuring the owner of any
such Indebtedness of the ability of the Primary Obligor to make payment of such
Indebtedness or (iv) otherwise to assure or hold harmless the owner of
such Indebtedness against loss in respect thereof; provided, however,
that the term “Guarantee” shall not include endorsements of instruments for
deposit or collection in the ordinary course of business.  The amount of any Guarantee shall be deemed
to be an amount equal to the stated or determinable amount of the Indebtedness
in respect of which such Guarantee is made or, if not stated or determinable,
the maximum reasonably anticipated liability in respect thereof (assuming such
Person is required to perform thereunder) as determined by such Person in good
faith.  The term “Guarantee” as a verb
has a corresponding meaning.

 

“Guarantors”
means a collective reference to (a) the Company, in its capacity as a
guarantor of the Designated Borrower Obligations and (b) the Subsidiary
Guarantors.

 

“Guaranty”
means the Guaranty made by the Guarantors in favor of the Administrative Agent
and the Lenders pursuant to Article IV hereof.

 

“Hazardous
Materials” means any substance that is defined or listed as a hazardous,
toxic or dangerous substance under any present or future applicable
Environmental Law or that is otherwise regulated or prohibited or subject to
investigation or remediation under any present or future applicable
Environmental Law because of its hazardous, toxic, or dangerous properties,
including (i) any substance that is a “hazardous substance” under CERCLA
(as defined in the definition of “Environmental Laws”) and
(ii) petroleum wastes or products.

 

“Indebtedness”,
as applied to any Person at a particular time, means without duplication, all
of the following, whether or not included as indebtedness or liabilities in
accordance with GAAP:

 

14

 

(a)           all obligations of such Person for
borrowed money and all obligations of such Person evidenced by bonds,
debentures, notes, loan agreements or other similar instruments;

 

(b)           that portion of obligations with
respect to Capital Leases that is properly classified as a liability on a
balance sheet of such Person in conformity with GAAP,

 

(c)           any obligation incurred by such
Person in connection with banker’s acceptances and the maximum aggregate amount
from time to time available for drawing under all outstanding letters of credit
issued for the account of such Person together, without duplication, with the
amount of all honored but unreimbursed drawings thereunder;

 

(d)           all monetary obligations of such
Person under any Swap Contract;

 

(e)           all obligations of such Person to pay
for all or any part of the deferred purchase price of property or services
(excluding any such obligations incurred under ERISA, any trade accounts
payable in the ordinary course of business and earn out obligations related to
any Permitted Acquisitions), including, without limitation, purchase money
Indebtedness, which purchase price (a) is due more than six months from
the date of incurrence of the obligation in respect thereof and (b) would
be shown on the liability side of the balance sheet of such Person in
accordance with GAAP;

 

(f)            all indebtedness referred to in clauses
(a) through (e) above secured by any Lien on any property or asset
owned or held by that Person regardless of whether the indebtedness secured
thereby shall have been assumed by that Person or is nonrecourse to the credit
of that Person;

 

(g)           the Attributable Indebtedness of
Synthetic Lease Obligations and any Accounts Receivable Facility;

 

(h)           all Guarantees of such Person in
respect of any of the foregoing; and

 

(i)            all Indebtedness of the types
referred to in clauses (a) through (g) above of any partnership or
joint venture (other than a joint venture that is itself a corporation or
limited liability company) in which the Company or any Subsidiary is a general
partner or a joint venturer to the extent the Company or any Subsidiary is
liable for such Indebtedness pursuant to applicable Law.

 

“Indemnified
Taxes” means Taxes other than Excluded Taxes.

 

“Indemnitees”
has the meaning specified in Section 11.04(b).

 

“Information”
has the meaning specified in Section 11.07.

 

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

 

“Interest
Payment Date” means, (a) as to any Loan other than a Base Rate Loan,
the last day of each Interest Period applicable to such Loan and the Maturity
Date; provided, however, that if any Interest Period for a
Eurocurrency Rate Loan exceeds three months, the respective dates that fall
every 

 

15

 

three
months after the beginning of such Interest Period shall also be Interest Payment
Dates; and (b) as to any Base Rate Loan (including a Swing Line Loan), the
last Business Day of each March, June, September and December and the
Maturity Date.

 

“Interest
Period” means, as to each Eurocurrency Rate Loan, the period commencing on
the date such Eurocurrency Rate Loan is disbursed or converted to or continued
as a Eurocurrency Rate Loan and ending on the date one, two, three or six
months thereafter, as selected by the Company in its Committed Loan Notice or,
nine or twelve months thereafter, as requested by the Company and consented to
by all Lenders; provided that:

 

(i)            any Interest Period that would
otherwise end on a day that is not a Business Day shall be extended to the next
succeeding Business Day unless such Business Day falls in another calendar
month, in which case such Interest Period shall end on the next preceding
Business Day;

 

(ii)           any Interest Period that begins on
the last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Business Day of the calendar month at the end of
such Interest Period; and

 

(iii)          no Interest Period shall extend beyond
the Maturity Date.

 

“Internal
Revenue Code” means the Internal Revenue Code of 1986, as amended to the
Closing Date and from time to time thereafter, and any successor statute.

 

“Investment”
means (i) any purchase or other acquisition by the Company or any of its
Subsidiaries of, or of a beneficial interest in, any Equity Interests of any
other Person (other than a Person that prior to such purchase or acquisition
was a Subsidiary of the Company), (ii) any loan, advance (other than
advances to employees for moving, entertainment and travel expenses, drawing
accounts and similar expenditures in the ordinary course of business) or
capital contribution by the Company or any of its Subsidiaries to any Third
Party, including all indebtedness and accounts receivable from that Third Party
that are not current assets or did not arise from sales to that Third Party in
the ordinary course of business, or (iii) the designation of any Person as
an Unrestricted Subsidiary.  The amount
of any Investment shall be (A) the original cost of such Investment
(determined, in the case of an Investment described in clause (iii) above,
as provided in the definition of “Subsidiary”), without any adjustments for
increases or decreases in value, or write-ups, write-downs or write-offs with
respect to such Investment, minus (B) the lesser of (1) the
aggregate amount of any repayments, redemptions, dividends or distributions
thereon or proceeds from the sale thereof, in each case to the extent of cash
payments (including any cash received by way of deferred payment pursuant to,
or monetization of, a note receivable or otherwise, but only as and when so
received) actually received by the Company or the applicable Subsidiary of the
Company, and (2) the aggregate amount described in the immediately
preceding clause (A).

 

“IRS”
means the United States Internal Revenue Service.

 

“ISP”
means, with respect to any Letter of Credit, the “International Standby
Practices 1998” published by the Institute of International Banking Law &
Practice (or such later version thereof as may be in effect at the time of issuance).

 

“Issuer
Documents” means with respect to any Letter of Credit, the Letter of Credit
Application, and any other document, agreement and instrument entered into by
the L/C Issuer and the Company (or any Subsidiary) or in favor of the L/C
Issuer and relating to any such Letter of Credit.

 

16

 

“Joinder
Agreement” means a joinder agreement substantially in the form of Exhibit G
executed and delivered by a direct or indirect Domestic Subsidiary that is a
Material Subsidiary in accordance with the provisions of Section 7.07.

 

“Joint
Lead Arrangers” means BAS, J.P. Morgan Securities Inc. and Wells Fargo
Securities, LLC.

 

“Joint
Venture” means a joint venture, partnership or other similar arrangement,
whether in corporate, partnership or other legal form; provided that in
no event shall any corporate Subsidiary of any Person be considered to be a
Joint Venture to which such Person is a party.

 

“Laws”
means as to any Person, any law, treaty, executive order, rule or
regulation or determination of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.

 

“L/C
Advance” means, with respect to each Lender, such Lender’s funding of its
participation in any L/C Borrowing in accordance with its Applicable
Percentage.  All L/C Advances shall be denominated in Dollars.

 

“L/C
Borrowing” means an extension of credit resulting from a drawing under any
Letter of Credit which has not been reimbursed on the date when made or
refinanced as a Committed Borrowing.  All L/C Borrowings shall be denominated in
Dollars.

 

“L/C
Credit Extension” means, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof, or the increase of the amount
thereof.

 

“L/C
Issuer” means Bank of America in its capacity as issuer of Letters of
Credit hereunder, or any successor issuer of Letters of Credit hereunder.

 

“L/C
Obligations” means, as at any date of determination, the then Dollar
Equivalent of the aggregate amount available to be drawn under all outstanding
Letters of Credit plus the aggregate of all Unreimbursed Amounts,
including all L/C Borrowings.  For
purposes of computing the amount available to be drawn under any Letter of
Credit, the amount of such Letter of Credit shall be determined in accordance
with Section 1.08.  For all
purposes of this Agreement, if on any date of determination a Letter of Credit
has expired by its terms but any amount may still be drawn thereunder by reason
of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be
deemed to be “outstanding” in the amount so remaining available to be drawn.

 

“Lender”
has the meaning specified in the introductory paragraph hereto and, as the
context requires, includes the L/C Issuer and the Swing Line Lender.

 

“Lending
Office” means, as to any Lender, the office or offices of such Lender
described as such in such Lender’s Administrative Questionnaire, or such other
office or offices as a Lender may from time to time notify the Company and the
Administrative Agent.

 

“Letter
of Credit” means any letter of credit issued hereunder.  A Letter of Credit may be a commercial Letter
of Credit or a standby Letter of Credit. 
Letters of Credit may be issued in Dollars or in an Alternative
Currency.

 

“Letter
of Credit Application” means an application and agreement for the issuance
or amendment of a Letter of Credit in the form from time to time in use by the
L/C Issuer.

 

17

 

“Letter
of Credit Expiration Date” means the day that is five days prior to the
Maturity Date then in effect (or, if such day is not a Business Day, the next
preceding Business Day).

 

“Letter
of Credit Fee” has the meaning specified in Section 2.03(h).

 

“Letter
of Credit Sublimit” means an amount equal to $75,000,000.  The Letter of Credit Sublimit is part of, and
not in addition to, the Aggregate Commitments.

 

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

 

“Loan”
means an extension of credit by a Lender to a Borrower under Article II
in the form of a Committed Loan or a Swing Line Loan.

 

“Loan
Documents” means this Agreement, each Designated Borrower Request and
Assumption Agreement, each Note, each Issuer Document, the Fee Letter and any
agreement creating or perfecting rights in Cash Collateral pursuant to the
provisions of Section 2.15 of this Agreement, each as amended,
modified, supplemented, extended, renewed, restated or substituted from time to
time.

 

“Loan
Party” means the Company, each Designated Borrower and each Subsidiary
Guarantor, and “Loan Parties” means all such Persons, collectively.

 

“London
Banking Day” means any day on which dealings in Dollar deposits are
conducted by and between banks in the London interbank eurodollar market.

 

“Mandatory
Cost” means, with respect to any period, the percentage rate per annum
determined in accordance with Schedule 1.01.

 

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

 

“Material
Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the business, assets, operations, properties or financial
condition of the Company and its Subsidiaries taken as a whole; (b) a
material impairment of the ability of the Loan Parties, taken as a whole, to
perform their obligations under this Agreement or any other Loan Document; or (c) a
material impairment of the rights and remedies of the Administrative Agent and
Lenders under this Agreement or any other Loan Document.

 

“Material
Subsidiary” means any Subsidiary with respect to which either of the
following criteria has been met:  (a) the
aggregate revenue generated by such Subsidiary equals or exceeds an amount
equal to five percent (5%) of the consolidated aggregate revenues generated by
the Company and its Subsidiaries for the period of four consecutive fiscal
quarters most recently ended or (b) the aggregate book value of the assets
of such Subsidiary equals or exceeds five percent (5%) of the then current book
value of all the assets of the Company and its Subsidiaries.

 

“Maturity
Date” means August 13, 2014.

 

“Moody’s”
means Moody’s Investors Service, Inc. and any successor thereto.

 

18

 

“Multiemployer
Plan” means a “multiemployer plan”, within the meaning of Section 4001(a)(3) of
ERISA, with respect to which the Company, any of its Subsidiaries or any ERISA
Affiliate may have liability.

 

“Non-Consenting
Lender” has the meaning specified in Section 11.13.

 

“Note”
means a Revolving Note or a Swing Line Note, as the context may require.

 

“Obligations”
means all advances to, and debts, liabilities and obligations of, any Loan
Party arising under any Loan Document or otherwise with respect to any Loan or
Letter of Credit, whether direct or indirect (including those acquired by
assumption), absolute or contingent, due or to become due, now existing or
hereafter arising and including interest and fees that accrue after the
commencement by or against any Loan Party or any Affiliate thereof of any
proceeding under any Debtor Relief Laws naming such Person as the debtor in
such proceeding, regardless of whether such interest and fees are allowed
claims in such proceeding.

 

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

 

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

 

“Outstanding
Amount” means (i) with respect to Committed Loans on any date, the Dollar
Equivalent of the aggregate outstanding principal amount thereof after giving
effect to any borrowings and prepayments or repayments of such Committed Loans
occurring on such date; (ii) with respect to Swing Line Loans on any date,
the aggregate outstanding principal amount thereof after giving effect to any
borrowings and prepayments or repayments of such Swing Line Loans occurring on
such date; and (iii) with respect to any L/C Obligations on any date, the
Dollar Equivalent of the aggregate outstanding amount of such L/C Obligations
on such date after giving effect to any L/C Credit Extension occurring on such
date and any other changes in the aggregate amount of the L/C Obligations as of
such date, including as a result of any reimbursements by the Company of
Unreimbursed Amounts.

 

“Overnight
Rate” means, for any day, (a) with respect to any amount denominated
in Dollars, the greater of (i) the Federal Funds Rate and (ii) an
overnight rate determined by the Administrative Agent, the L/C Issuer, or the
Swing Line Lender, as the case may be, in accordance with banking industry rules on
interbank compensation, and (b) with respect to any amount denominated in
an Alternative Currency, the rate of interest per annum at which overnight
deposits in the applicable Alternative Currency, in an amount approximately
equal to the amount with respect to which such rate is being determined, would
be offered for such day by a branch or Affiliate of Bank of America in the
applicable offshore interbank market for such currency to major banks in such
interbank market.

 

“Participant”
has the meaning specified in Section 11.06(d).

 

“Participating
Member State” means each state so described in any EMU Legislation.

 

19

 

“Patriot Act” shall mean the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism (USA PATRIOT ACT) Act of 2001 (Title III of Pub. L. No. 107-56
(signed into law October 26, 2001)), as amended or modified from time to
time.

 

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

 

“PBGC
Agreements” means that certain Settlement Agreement effective as of May 14,
1997, by and between the Company and the PBGC, and that certain Negative Pledge
Undertaking dated May 19, 1997, from the Company for the benefit of the
PBGC, in each case as amended from time to time after the Closing Date in
accordance with Section 8.08(b).

 

“Pension
Plan” means a pension plan as defined in Section 3(2) of ERISA
(other than a Multiemployer Plan), with respect to which the Company, any of
its Subsidiaries or any ERISA Affiliate may have any liability.

 

“Permitted
Acquisition” means any Acquisition by the Company or any of its
Subsidiaries that satisfies the following conditions:

 

(a)           the Property acquired (or the
Property of the Person acquired) in such Acquisition is used or useful in a
similar business;

 

(b)           in the case of an Acquisition of the
Equity Interest of any Person, the board of directors (or other comparable
governing body) of such other Person shall have approved the Acquisition; and

 

(c)           (i) no Default or Event of
Default shall exist and be continuing immediately before or immediately after
giving effect thereto, (ii) the representations and warranties made by the
Loan Parties in any Loan Document shall be true and correct in all material
respects at and as if made as of the date of such Acquisition (after giving
effect thereto) except to the extent such representations and warranties
expressly relate to an earlier date, (iii) upon giving effect to such
Acquisition on a Pro Forma Basis, the Loan Parties would be in compliance with
the financial covenants set forth in Section 8.06 as of the most
recent fiscal quarter for which the Company has delivered financial statements
pursuant to Section 7.01(a) or (b), and (iv) to
the extent the aggregate consideration for such Acquisition exceeds
$100,000,000, the Company shall have delivered to the Administrative Agent a
certificate demonstrating that, upon giving effect to such Acquisition on a Pro
Forma Basis, the Loan Parties would be in compliance with the financial
covenants set forth in Section 8.06 as of the most recent fiscal
quarter for which the Company has delivered financial statements pursuant to Section 7.01(a) or
(b).

 

“Permitted
Encumbrances” means the following types of Liens:

 

(a)           Liens (other than any Lien imposed
pursuant to Section 430(k) of the Internal Revenue Code or by ERISA
or any Lien in favor of the PBGC) for taxes, fees, assessments or other
governmental charges which are not delinquent or remain payable without
penalty, or to the extent that payment thereof is otherwise not, at the time,
required by Section 7.03;

 

(b)           Liens in respect of property or
assets imposed by law, such as carriers’, warehousemen’s, mechanics’, landlords’,
materialmen’s, repairmen’s or other similar Liens arising in the ordinary
course of business, in each case so long as such Liens do not, individually or
in the aggregate, have a Material Adverse Effect;

 

20

 

(c)           Liens (other than any Lien imposed
pursuant to Section 430(k) of the Internal Revenue Code or by ERISA
or any Lien in favor of the PBGC) incurred or deposits made in the ordinary
course of business in connection with workers’ compensation, unemployment
insurance and other types of social security, or to secure the performance of
tenders, statutory obligations, surety and appeal bonds, bids, leases,
government contracts, performance and return-of-money bonds and other similar
obligations incurred in the ordinary course of business (exclusive of
obligations in respect of payments for borrowed money);

 

(d)           Liens incurred in the ordinary course
of business on securities to secure repurchase and reverse repurchase obligations
in respect of such securities;

 

(e)           Liens consisting of judgment or
judicial attachment liens in circumstances not constituting an Event of Default
under Section 9.01(h);

 

(f)            easements, rights-of-way,
restrictions, minor defects or irregularities of title and other similar
encumbrances not interfering in any material respect with the business of the
Company and its Subsidiaries, taken as a whole;

 

(g)           Liens arising solely by virtue of (i) any
statutory or common law provision relating to bankers’ liens, rights of set-off
or similar rights and remedies with respect to deposit accounts or other funds
maintained with a creditor depository institution or (ii) any contractual
netting arrangement with respect to deposit accounts maintained by any Subsidiaries
of the Company in the United Kingdom, to the extent such arrangement secures
the repayment of any overdraft charged against any such account on a net
credit/debit balance basis with the other such accounts; provided that
(in the case of both clause (i) and (ii) above) the applicable
deposit account is not a cash collateral account;

 

(h)           any interest or title of a lessor, or
secured by a lessor’s interest under, any lease permitted by this Agreement;

 

(i)            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;

 

(j)            Liens on goods the purchase price of
which is financed by a commercial letter of credit issued for the account of
the Company or any of its Subsidiaries; provided that such Lien secures
only the obligations of the Company or such Subsidiary in respect of such
commercial letter of credit to the extent permitted under this Agreement; and

 

(k)           leases or subleases granted to others
not interfering in any material respect with the business of the Company and
its Subsidiaries, taken as a whole.

 

“Permitted
Liens” means those Liens permitted to exist pursuant to Section 8.02.

 

“Person”
means and includes natural persons, corporations, limited partnerships, general
partnerships, limited liability companies, limited liability partnerships,
joint stock companies, Joint Ventures, associations, companies, trusts, banks,
trust companies, land trusts, business trusts or other organizations, whether
or not legal entities, Governmental Authority or other entity.

 

“Plan”
means an employee benefit plan (as defined in Section 3(3) of ERISA)
which Company or any of its Subsidiaries sponsors or maintains, or to which
Company or any of its Subsidiaries makes, is 

 

21

 

making
or is obligated to make contributions, or to which Company or any of its
Subsidiaries may have any liability, and includes any Pension Plan.

 

“Platform”
has the meaning specified in Section 7.01.

 

“Priority Indebtedness”  means, as of any date, the sum (without duplication) of the
(a) outstanding unsecured Indebtedness of the Subsidiaries that are not a
Designated Borrower or a Guarantor, other than Indebtedness owed to any Loan
Party, and (b) Indebtedness of the Company and its Subsidiaries secured by
Liens not otherwise permitted by Section 8.02(a) – (d).

 

“Pro
Forma Basis” means, for purposes of calculating the financial covenants set
forth in Section 8.06 (including for purposes of determining the Applicable
Rate) or for purposes of calculating compliance with any other covenant
hereunder, that any Asset Sale, Acquisition or Restricted Payment shall be
deemed to have occurred as of the first day of the most recent four fiscal
quarter period preceding the date of such transaction for which the Company has
delivered financial statements pursuant to Section 7.01(a) or (b).  In connection with the foregoing, (a) with
respect to any Asset Sale (i) income statement and cash flow statement
items (whether positive or negative) attributable to the property disposed of
shall be excluded to the extent relating to any period occurring prior to the
date of such transaction and (ii) Indebtedness which is retired shall be
excluded and deemed to have been retired as of the first day of the applicable
period and (b) with respect to any Acquisition (i) income statement
items (whether positive or negative) attributable to the Person or property
acquired shall be included to the extent relating to any period applicable in such
calculations to the extent (A) such items are not otherwise included in
such income statement items for the Company and its Subsidiaries in accordance
with GAAP or in accordance with any defined terms set forth in Section 1.01
and (B) such items are supported by audited or historical financial
statements, or other information reasonably satisfactory to the Administrative
Agent, (ii) income statement items may also be adjusted to reflect
reasonably identifiable and supportable net cost savings or a reasonably
identifiable and supportable increase in sales volume determined in good faith
by the Company and reasonably satisfactory to the Administrative Agent and (iii) any
Indebtedness incurred or assumed by the Company or any Subsidiary (including
the Person or property acquired) in connection with such transaction and any
Indebtedness of the Person or property acquired which is not retired in
connection with such transaction (A) shall be deemed to have been incurred
as of the first day of the applicable period and (B) 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.

 

“Ratings
Agencies” means S&P and Moody’s and “Ratings Agency” means any
one of them.

 

“Real
Estate” has the meaning specified in Section 7.01(j).

 

“Register”
has the meaning specified in Section 11.06(c).

 

“Related
Parties” means, with respect to any Person, such Person’s Affiliates and
the partners, directors, officers, employees, agents and advisors of such
Person and of such Person’s Affiliates.

 

“Request
for Credit Extension” means (a) with respect to a Borrowing,
conversion or continuation of Committed Loans, a Committed Loan Notice, (b) with
respect to an L/C Credit Extension, a Letter of Credit Application, and (c) with
respect to a Swing Line Loan, a Swing Line Loan Notice.

 

“Required
Lenders” means, as of any date of determination, Lenders having more than
50% of the Aggregate Commitments or, if the commitment of each Lender to make
Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have
been terminated pursuant to Section 9.02, Lenders 

 

22

 

holding
in the aggregate more than 50% of the Total Outstandings (with the aggregate
amount of each Lender’s risk participation and funded participation in L/C
Obligations and Swing Line Loans being deemed “held” by such Lender for
purposes of this definition); provided that the Commitment of, and the
portion of the Total Outstandings held or deemed held by, any Defaulting Lender
shall be excluded for purposes of making a determination of Required Lenders.

 

“Responsible
Officer” means, with respect to any Person, its chief executive officer,
president or any vice president, managing director, treasurer, controller or
other officer of such Person having substantially the same authority and
responsibility; provided, that, with respect to compliance with
financial covenants, “Responsible Officer” means the chief financial officer,
treasurer or controller of the Company, or any other officer of the Company
having substantially the same authority and responsibility.   Any document delivered hereunder that is
signed by a Responsible Officer of a Loan Party shall be conclusively presumed
to have been authorized by all necessary corporate, partnership and/or other
action on the part of such Loan Party, and such Responsible Officer shall be
conclusively presumed to have acted on behalf of such Loan Party.

 

“Restricted
Acquisition Subsidiary” means (i) a Subsidiary of the Company that is
or was (a) first created or acquired by the Company or any of its
Subsidiaries after the Closing Date in connection with an Acquisition and (b) designated
as a “Restricted Acquisition Subsidiary” pursuant to a written notice delivered
by the Company to the Administrative Agent prior to the consummation of such
Acquisition; provided that the Company may, by written notice to the
Administrative Agent, redesignate any Restricted Acquisition Subsidiary as a
Subsidiary that is not a Restricted Acquisition Subsidiary.

 

“Restricted
Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any capital stock or other Equity
Interest of the Company or any Subsidiary (except a dividend payable solely in
shares of common stock of the Company payable solely in shares of that class of
stock to holders of that class), any payment (whether in cash, securities or
other property), including any sinking fund or similar deposit, on account of
the purchase, redemption, retirement, acquisition, cancellation or termination
of any such capital stock or other Equity Interest, or on account of any return
of capital to the Company’s stockholders, partners or members (or the
equivalent Person thereof) and any payment made to retire, or to obtain the
surrender of, any outstanding warrants, options or other rights to acquire
shares of any class of stock of the Company now or hereafter outstanding.

 

“Revaluation
Date” means (a) with respect to any Loan denominated in an Alternative
Currency, each of the following:  (i) each
date of a Borrowing of a Eurocurrency Rate Loan denominated in such Alternative
Currency, (ii) each date of a continuation of a Eurocurrency Rate Loan
denominated in such Alternative Currency pursuant to Section 2.02,
and (iii) such additional dates as the Administrative Agent shall determine
provided the Company receives prompt notice thereof; and (b) with respect
to any Letter of Credit denominated in an Alternative Currency, each of the
following:  (i) each date of
issuance of a Letter of Credit denominated in such Alternative Currency, (ii) each
date of an amendment of any such Letter of Credit having the effect of
increasing the amount thereof (solely with respect to the increased amount), (iii) each
date of any payment by the L/C Issuer under any Letter of Credit denominated in
such Alternative Currency, and (iv) such additional dates as the
Administrative Agent or the L/C Issuer shall determine provided the Company
receives prompt notice thereof.

 

“Revolving
Note” has the meaning specified in Section 2.11.

 

“S&P”
means Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc. and any successor thereto.

 

23

 

“Same
Day Funds” means (a) with respect to disbursements and payments in
Dollars, immediately available funds, and (b) with respect to
disbursements and payments in an Alternative Currency, same day or other funds
as may be determined by the Administrative Agent or the L/C Issuer, as the case
may be, to be customary in the place of disbursement or payment for the
settlement of international banking transactions in the relevant Alternative
Currency.

 

“SEC”
means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

 

“Special
Notice Currency” means at any time an Alternative Currency, other than the
currency of a country that is a member of the Organization for Economic
Cooperation and Development at such time located in North America or Europe.

 

“Spot
Rate” for a currency means the rate determined by the Administrative Agent
or the L/C Issuer, as applicable, to be the rate quoted by the Person acting in
such capacity as the spot rate for the purchase by such Person of such currency
with another currency through its principal foreign exchange trading office at
approximately 11:00 a.m.  on the
date two Business Days prior to the date as of which the foreign exchange
computation is made; provided  that the
Administrative Agent or the L/C Issuer may obtain such spot rate from another
financial institution designated by the Administrative Agent or the L/C Issuer
if the Person acting in such capacity does not have as of the date of
determination a spot buying rate for any such currency; and provided  further
that the L/C Issuer may use such spot rate quoted on the date as of which the
foreign exchange computation is made in the case of any Letter of Credit
denominated in an Alternative Currency.

 

“Sterling”
and “£” mean the lawful currency of the United Kingdom.

 

“Subsidiary”
means, with respect to any Person, any corporation, partnership, limited
liability company, association, joint venture or other business entity of which
more than 50% of the total voting power of shares of stock or other ownership
interests entitled (without regard to the occurrence of any contingency) to
vote in the election of the Person or Persons (whether directors, managers,
trustees or other Persons performing similar functions) having the power to
direct or cause the direction of the management and policies thereof is at the
time owned or controlled, directly or indirectly, by that Person or one or more
of the other Subsidiaries of that Person or a combination thereof; provided
that, with respect to the Company or any of its Subsidiaries, the term “Subsidiary”
shall not include any Unrestricted Subsidiary or any special purpose entity
that is a party to any Accounts Receivable Facility; and provided, further
that the Company shall be permitted from time to time to (i) designate any
Unrestricted Subsidiary as a “Subsidiary” of the Company hereunder by written
notice to Administrative Agent, so long as (a) no Default or Event of
Default shall have occurred and be continuing or shall be caused thereby and
(b) the provisions of Section 7.07 shall have been complied
with in respect of such newly-designated Subsidiary, or (ii) designate any
Subsidiary of the Company, or any Person that, as a result of the acquisition
after the Closing Date by the Company or any of its Subsidiaries of any equity
securities of such Person, would otherwise be a Subsidiary of the Company
hereunder, to be an “Unrestricted Subsidiary” by written notice to the
Administrative Agent so long as (1) after giving effect to such
designation as an Investment in such Unrestricted Subsidiary (calculated as an
amount equal to the sum of (X) the net worth of the Subsidiary or other
Person so designated (the “Designated Person”) immediately prior to such
designation (such net worth to be calculated, in the case of a Designated
Person that is a Subsidiary of the Company, without regard to any Obligations
of such Subsidiary under the Subsidiary Guaranty) and (Y) the aggregate
principal amount of any Indebtedness owed by the Designated Person to the
Company or any of its Subsidiaries immediately prior to such designation, all
calculated, except as set forth in the parenthetical to clause (X) above,
on a consolidated basis in accordance with GAAP), the Company shall be in
compliance with the provisions of Section 8.04(g), 

 

24

 

(2) no
Subsidiary is a Subsidiary of such Unrestricted Subsidiary, (3) on or
promptly after the date of designation of such Person as such Unrestricted
Subsidiary, such Unrestricted Subsidiary shall enter into a tax sharing
agreement with the Company that provides (as determined by the Company in good
faith) for an appropriate allocation of tax liabilities and benefits,
(4) no recourse whatsoever (whether by contract or by operation of law or
otherwise) may be had to the Company or any of its Subsidiaries or any of their
respective properties or assets for any obligations of such Unrestricted
Subsidiary except to the extent that the aggregate maximum amount of such
recourse constitutes (X) an Investment permitted under Section 8.04(g) or
(Y) a Guarantee permitted hereunder and (5) no Default or Event of
Default shall have occurred and be continuing or shall be caused thereby.

 

“Subsidiary
Guarantors” means each Domestic Subsidiary that is a Material Subsidiary
identified as a “Subsidiary Guarantor” on the signature pages hereto and
each other Domestic Subsidiary that is a Material Subsidiary that joins as a
Subsidiary Guarantor pursuant to Section 7.07.

 

“Swap
Contract” means any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity
options, forward commodity contracts, equity or equity index swaps or options,
bond or bond price or bond index swaps or options or forward bond or forward
bond price or forward bond index transactions, interest rate options, forward
foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement.

 

“Swing
Line” means the revolving credit facility made available by the Swing Line
Lender pursuant to Section 2.04.

 

“Swing
Line Borrowing” means a borrowing of a Swing Line Loan pursuant to Section 2.04.

 

“Swing
Line Lender” means Bank of America in its capacity as provider of Swing
Line Loans, or any successor swing line lender hereunder.

 

“Swing
Line Loan” has the meaning specified in Section 2.04(a).

 

“Swing
Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to Section 2.04(b),
which, if in writing, shall be substantially in the form of Exhibit B.

 

“Swing
Line Note” has the meaning specified in Section 2.11.

 

“Swing
Line Sublimit” means an amount equal to the lesser of (a) $20,000,000
and (b) the Aggregate Commitments. 
The Swing Line Sublimit is part of, and not in addition to, the
Aggregate Commitments.

 

“Synthetic
Lease Obligation” means the monetary obligation of a Person under a
so-called synthetic or off-balance sheet lease which, upon the insolvency or bankruptcy
of such Person, would be characterized as the indebtedness of such Person
(without regard to accounting treatment).

 

“TARGET
Day” means any day on which the Trans-European Automated Real-time Gross
Settlement Express Transfer (TARGET) payment system (or, if such payment system
ceases to be operative, such other payment system (if any) determined by
the Administrative Agent to be a suitable replacement) is open for the
settlement of payments in Euro.

 

25

 

“Taxes”
means all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental
Authority, including any interest, additions to tax or penalties applicable
thereto.

 

“Third
Party” means any Person other than the Company or any of its Subsidiaries.

 

“Total
Outstandings” means the aggregate Outstanding Amount of all Loans and all
L/C Obligations.

 

“Type”
means, with respect to a Committed Loan, its character as a Base Rate Loan or a
Eurocurrency Rate Loan.

 

“United
States” and “U.S.” mean the United States of America.

 

“Unreimbursed
Amount” has the meaning specified in Section 2.03(c)(i).

 

“Unrestricted
Subsidiary” means any corporate Subsidiary of the Company (determined
without giving effect to the provisos set forth in the definition of “Subsidiary”)
that is designated by the Company as an “Unrestricted Subsidiary” as provided
in the definition of “Subsidiary”.

 

“Voting
Stock” means, with respect to any Person, securities of such Person having
ordinary voting power (without regard to the occurrence of any contingency) to
vote in the election of directors of such Person.

 

“Wholly
Owned Subsidiary” means a Subsidiary of the Company, the Equity Interest of
which is 100% owned and controlled, directly or indirectly, by the Company.

 

“Yen”
and “¥” mean the lawful currency of Japan.

 

1.02        Other Interpretive Provisions.  With reference to this Agreement and each
other Loan Document, unless otherwise specified herein or in such other Loan
Document:

 

(a)           The definitions of terms herein shall apply equally to the
singular and plural forms of the terms defined. 
Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms.  The words “include,” “includes”
and “including” shall be deemed to be followed by the phrase “without
limitation.”  The word “will”
shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise, (i) any
definition of or reference to any agreement, instrument or other document
(including any Organization Document) shall be construed as referring to such
agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein or in any other Loan
Document), (ii) any reference herein to any Person shall be construed to
include such Person’s successors and assigns, (iii) the words “hereto,”
“herein,” “hereof” and “hereunder,” and words of similar
import when used in any Loan Document, shall be construed to refer to such Loan
Document in its entirety and not to any particular provision thereof, (iv) all
references in a Loan Document to Articles, Sections, Exhibits and Schedules
shall be construed to refer to Articles and Sections of, and Exhibits and
Schedules to, the Loan Document in which such references appear, (v) any
reference to any law shall include all statutory and regulatory provisions
consolidating, amending, replacing or interpreting such law and any reference
to any law or regulation shall, unless otherwise specified, refer to such law
or regulation as amended, modified or supplemented from time to time, and (vi) the

 

26

 

words
“asset” and “property” shall be construed to have 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.

 

(b)           In the computation of periods of time from a specified
date to a later specified date, the word “from” means “from and
including;” the words “to” and “until” each mean “to but
excluding;” and the word “through” means “to and including.”

 

(c)           Section headings herein and in the other Loan
Documents are included for convenience of reference only and shall not affect
the interpretation of this Agreement or any other Loan Document.

 

1.03        Accounting Terms.

 

(a)           Generally.  All accounting terms not specifically or completely
defined herein shall be construed in conformity with, and all financial data
(including financial ratios and other financial calculations) required to be
submitted pursuant to this Agreement shall be prepared in conformity with,
GAAP, as in effect from time to time, applied consistently throughout the
periods reflected therein, except as otherwise specifically prescribed
herein.

 

(b)           Changes
in GAAP.  If at any time any change
in GAAP would affect the computation of any financial ratio or requirement set
forth in any Loan Document, and either the Company or the Required Lenders
shall so request, the Administrative Agent, the Lenders and the Company shall
negotiate in good faith to amend such ratio or requirement to preserve the
original intent thereof in light of such change in GAAP (subject to the
approval of the Required Lenders); provided  that, until so
amended, (i) such ratio or requirement shall continue to be computed in
accordance with GAAP prior to such change therein and (ii) the Company
shall provide to the Administrative Agent and the Lenders financial statements
and other documents required under this Agreement or as reasonably requested
hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP.

 

(c)           Pro
Forma Basis.  Notwithstanding the
above, the parties hereto acknowledge and agree that all calculations of
financial covenants in Section 8.06 (including for purposes of
determining the Applicable Rate) shall be made on a Pro Forma Basis.

 

1.04        Exchange Rates; Currency Equivalents.

 

(a)           The
Administrative Agent or the L/C Issuer, as applicable, shall determine the Spot
Rates as of each Revaluation Date to be used for calculating Dollar Equivalent
amounts of Credit Extensions and Outstanding Amounts denominated in Alternative
Currencies.  Such Spot Rates shall become
effective as of such Revaluation Date and shall be the Spot Rates employed in
converting any amounts between the applicable currencies until the next
Revaluation Date to occur.  Except for
purposes of financial statements delivered by Loan Parties hereunder or
calculating financial covenants hereunder or except as otherwise provided
herein, the applicable amount of any currency (other than Dollars) for purposes
of the Loan Documents shall be such Dollar Equivalent amount as so determined
by the Administrative Agent or the L/C Issuer, as applicable.

 

(b)           Wherever
in this Agreement in connection with a Committed Borrowing, conversion,
continuation or prepayment of a Eurocurrency Rate Loan or the issuance,
amendment or extension of a Letter of Credit, an amount, such as a required
minimum or multiple amount, is expressed in Dollars, but such Committed
Borrowing, Eurocurrency Rate Loan or Letter of Credit is denominated in an
Alternative 

 

27

 

Currency,
such amount shall be the relevant Alternative Currency Equivalent of such
Dollar amount (rounded to the nearest unit of such Alternative Currency, with
0.5 of a unit being rounded upward), as determined by the Administrative Agent
or the L/C Issuer, as the case may be.

 

1.05        Additional Alternative Currencies.

 

(a)           The
Company may from time to time request that Eurocurrency Rate Loans be made
and/or Letters of Credit be issued in a currency other than those specifically
listed in the definition of “Alternative Currency;” provided that such
requested currency is a lawful currency (other than Dollars) that is readily
available and freely transferable and convertible into Dollars.  In the case of any such request with respect
to the making of Eurocurrency Rate Loans, such request shall be subject to the
approval of the Administrative Agent and the Lenders; and in the case of any
such request with respect to the issuance of Letters of Credit, such request
shall be subject to the approval of the Administrative Agent and the L/C
Issuer.

 

(b)           Any
such request shall be made to the Administrative Agent not later than
11:00 a.m., ten Business Days prior to the date of the desired Credit
Extension (or such other time or date as may be agreed by the Administrative
Agent and, in the case of any such request pertaining to Letters of Credit, the
L/C Issuer, in its or their sole discretion). 
In the case of any such request pertaining to Eurocurrency Rate Loans,
the Administrative Agent shall promptly notify each Lender thereof; and in the
case of any such request pertaining to Letters of Credit, the Administrative
Agent shall promptly notify the L/C Issuer thereof.  Each Lender (in the case of any such request
pertaining to Eurocurrency Rate Loans) or the L/C Issuer (in the case of a
request pertaining to Letters of Credit) shall notify the Administrative Agent,
not later than 11:00 a.m., seven Business Days after receipt of such
request whether it consents, in its sole discretion, to the making of
Eurocurrency Rate Loans or the issuance of Letters of Credit, as the case may
be, in such requested currency.

 

(c)           Any
failure by a Lender or the L/C Issuer, as the case may be, to respond to such
request within the time period specified in the preceding sentence shall be
deemed to be a refusal by such Lender or the L/C Issuer, as the case may be, to
permit Eurocurrency Rate Loans to be made or Letters of Credit to be issued in
such requested currency.  If the
Administrative Agent and all the Lenders consent to making Eurocurrency Rate
Loans in such requested currency, the Administrative Agent shall so notify the
Company, and such currency shall thereupon be deemed for all purposes to be an
Alternative Currency hereunder for purposes of any Committed Borrowings of
Eurocurrency Rate Loans; and if the Administrative Agent and the L/C Issuer
consent to the issuance of Letters of Credit in such requested currency, the
Administrative Agent shall so notify the Company, and such currency shall
thereupon be deemed for all purposes to be an Alternative Currency hereunder
for purposes of any Letter of Credit issuances. 
If the Administrative Agent shall fail to obtain consent to any request
for an additional currency under this Section 1.05, the
Administrative Agent shall promptly so notify the Company.

 

1.06        Change of Currency.

 

(a)           Each
obligation of the Borrowers to make a payment denominated in the national
currency unit of any member state of the European Union that adopts the Euro as
its lawful currency after the Closing Date shall be redenominated into Euro at
the time of such adoption (in accordance with the EMU Legislation).  If, in relation to the currency of any such
member state, the basis of accrual of interest expressed in this Agreement in
respect of that currency shall be inconsistent with any convention or practice
in the London interbank market for the basis of accrual of interest in respect
of the Euro, such expressed basis shall be replaced by such convention or
practice with effect from the date on which such member state adopts the Euro
as its lawful currency; provided that if any Committed Borrowing in the 

 

28

 

currency
of such member state is outstanding immediately prior to such date, such
replacement shall take effect, with respect to such Committed Borrowing, at the
end of the then current Interest Period.

 

(b)           Each
provision of this Agreement shall be subject to such reasonable changes of
construction as the Administrative Agent may from time to time specify to be
appropriate to reflect the adoption of the Euro by any member state of the
European Union and any relevant market conventions or practices relating to the
Euro.

 

(c)           Each
provision of this Agreement also shall be subject to such reasonable changes of
construction as the Administrative Agent may from time to time specify to be
appropriate to reflect a change in currency of any other country and any
relevant market conventions or practices relating to the change in currency.

 

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

 

1.08        Letter of Credit Amounts.   Unless otherwise specified herein, the
amount of a Letter of Credit at any time shall be deemed to be the Dollar
Equivalent of the stated amount of such Letter of Credit in effect at such
time; provided, however, that with respect to any Letter of
Credit that, by its terms or the terms of any Issuer Document related thereto,
provides for one or more automatic increases in the stated amount thereof, the
amount of such Letter of Credit shall be deemed to be the Dollar Equivalent of
the maximum stated amount of such Letter of Credit after giving effect to all
such increases, whether or not such maximum stated amount is in effect at such
time.

 

ARTICLE II

THE COMMITMENTS AND CREDIT EXTENSIONS

 

2.01        Committed Loans.

 

Subject
to the terms and conditions set forth herein, each Lender severally agrees to
make loans (each such loan, a “Committed Loan”) to the Borrowers in
Dollars or in one or more Alternative Currencies from time to time, on any
Business Day during the Availability Period, in an aggregate amount not to exceed
at any time outstanding the amount of such Lender’s Commitment; provided,
however, that after giving effect to any Committed Borrowing,
(i) the Total Outstandings shall not exceed the Aggregate Commitments,
(ii) the aggregate Outstanding Amount of the Committed Loans of any
Lender, plus such Lender’s Applicable Percentage of the Outstanding
Amount of all L/C Obligations, plus such Lender’s Applicable Percentage
of the Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s
Commitment and (iii) the aggregate Outstanding Amount of all Committed
Loans denominated in an Alternative Currency plus the aggregate Outstanding
Amount of all L/C Obligations denominated in an Alternative Currency shall not
exceed the Alternative Currency Sublimit. 
Each Lender may, at its option, make any Committed Loan available to any
Designated Borrower that is a Foreign Subsidiary by causing any foreign or
domestic branch or Affiliate of such Lender to make such Committed Loan; provided
that any exercise of such option shall not affect the obligation of such
Designated Borrower to repay such Committed Loan in accordance with the terms
of this Agreement.  Within the limits of
each Lender’s Commitment, and subject to the other terms and conditions hereof,
the Borrowers may borrow under this Section 2.01, prepay under Section 2.05,
and reborrow under this Section 2.01.  Committed Loans may be Base Rate Loans or
Eurocurrency Rate Loans, as further provided herein.  All Committed Loans made on the Closing Date
shall be Base Rate Loans.

 

29

 

2.02        Borrowings, Conversions and
Continuations of Committed Loans.

 

(a)           Each
Committed Borrowing, each conversion of Committed Loans from one Type to the
other, and each continuation of Eurocurrency Rate Loans shall be made upon the
Company’s irrevocable notice to the Administrative Agent, which may be given by
telephone.  Each such notice must be
received by the Administrative Agent not later than 11:00 a.m.
(i) three Business Days prior to the requested date of any Borrowing of,
conversion to or continuation of Eurocurrency Rate Loans denominated in Dollars
or of any conversion of Eurocurrency Rate Loans denominated in Dollars to Base
Rate Committed Loans, (ii) four Business Days (or five Business Days in
the case of a Special Notice Currency) prior to the requested date of any
Borrowing or continuation of Eurocurrency Rate Loans denominated in Alternative
Currencies, and (iii) on the requested date of any Borrowing of Base Rate
Committed Loans; provided, however, that if the Company wishes to
request Eurocurrency Rate Loans having an Interest Period other than one, two,
three or six months in duration as provided in the definition of “Interest
Period”, the applicable notice must be received by the Administrative Agent not
later than 11:00 a.m. (i) four Business Days prior to the requested
date of such Borrowing, conversion or continuation of Eurocurrency Rate Loans
denominated in Dollars, or (ii) five Business Days (or six Business Days
in the case of a Special Notice Currency) prior to the requested date of such
Borrowing, conversion or continuation of Eurocurrency Rate Loans denominated in
Alternative Currencies, whereupon the Administrative Agent shall give prompt
notice to the Lenders of such request and determine whether the requested
Interest Period is acceptable to all of them. 
Each telephonic notice by the Company pursuant to this Section 2.02(a) must
be confirmed promptly by delivery to the Administrative Agent of a written Committed
Loan Notice, appropriately completed and signed by a Responsible Officer of the
Company.  Each Borrowing of, conversion
to or continuation of Eurocurrency Rate Loans shall be in a principal amount of
$5,000,000 or a whole multiple of $1,000,000 in excess thereof.  Except as provided in Sections 2.03(c) and
2.04(c), each Committed Borrowing of or conversion to Base Rate
Committed Loans shall be in a principal amount of $1,000,000 or a whole
multiple of $100,000 in excess thereof. 
Each Committed Loan Notice (whether telephonic or written) shall specify
(i) whether the Company is requesting a Committed Borrowing, a conversion
of Committed Loans from one Type to the other, or a continuation of
Eurocurrency Rate Loans, (ii) the requested date of the Borrowing,
conversion or continuation, as the case may be (which shall be a Business Day),
(iii) the principal amount of Committed Loans to be borrowed, converted or
continued, (iv) the Type of Committed Loans to be borrowed or to which
existing Committed Loans are to be converted, (v) if applicable, the
duration of the Interest Period with respect thereto, (vi) the currency of
the Committed Loans to be borrowed, and (vii) if applicable, the
Designated Borrower.  If the Company
fails to specify a currency in a Committed Loan Notice requesting a Borrowing,
then the Committed Loans so requested shall be made in Dollars.  If the Company fails to specify a Type of
Committed Loan in a Committed Loan Notice or if the Company fails to give a
timely notice requesting a conversion or continuation, then the applicable
Committed Loans shall be made as, or converted to, Base Rate Loans; provided,
however, that in the case of a failure to timely request a continuation
of Committed Loans denominated in an Alternative Currency, such Loans shall be
continued as Eurocurrency Rate Loans in their original currency with an
Interest Period of one month.  Any
automatic conversion to Base Rate Loans shall be effective as of the last day
of the Interest Period then in effect with respect to the applicable
Eurocurrency Rate Loans.  If the Company
requests a Borrowing of, conversion to, or continuation of Eurocurrency Rate
Loans in any such Committed Loan Notice, but fails to specify an Interest
Period, it will be deemed to have specified an Interest Period of one
month.  No Committed Loan may be
converted into or continued as a Committed Loan denominated in a different
currency, but instead must be prepaid in the original currency of such
Committed Loan and reborrowed in the other currency.

 

(b)           Following
receipt of a Committed Loan Notice, the Administrative Agent shall promptly
notify each Lender of the amount (and currency) of its Applicable Percentage of
the applicable Committed Loans, and if no timely notice of a conversion or
continuation is provided by the Company, 

 

30

 

the
Administrative Agent shall notify each Lender of the details of any automatic
conversion to Base Rate Loans or continuation of Committed Loans denominated in
a currency other than Dollars, in each case as described in the preceding
subsection.  In the case of a Committed
Borrowing, each Lender shall make the amount of its Committed Loan available to
the Administrative Agent in Same Day Funds at the Administrative Agent’s Office
for the applicable currency not later than 1:00 p.m., in the case of any
Committed Loan denominated in Dollars, and not later than the Applicable Time
specified by the Administrative Agent in the case of any Committed Loan in an
Alternative Currency, in each case on the Business Day specified in the
applicable Committed Loan Notice.  Upon
satisfaction of the applicable conditions set forth in Section 5.02
(and, if such Borrowing is the initial Credit Extension, Section 5.01),
the Administrative Agent shall make all funds so received available to the
Company or the other applicable Borrower in like funds as received by the
Administrative Agent either by (i) crediting the account of such Borrower
on the books of Bank of America with the amount of such funds or (ii) wire
transfer of such funds, in each case in accordance with instructions provided
to (and reasonably acceptable to) the Administrative Agent by the Company; provided,
however, that if, on the date the Committed Loan Notice with respect to
such Borrowing denominated in Dollars is given by the Company, there are L/C
Borrowings outstanding, then the proceeds of such Borrowing, first,
shall be applied to the payment in full of any such L/C Borrowings, and, second,
shall be made available to the applicable Borrower as provided above.

 

(c)           Except
as otherwise provided herein, a Eurocurrency Rate Loan may be continued or
converted only on the last day of an Interest Period for such Eurocurrency Rate
Loan.  During the existence of a Default
or an Event of Default, if the Required Lenders so elect, (i) no Loans may
be converted to or continued as Eurocurrency Rate Loans (whether in Dollars or
any Alternative Currency) and (ii) any or all of the then outstanding
Eurocurrency Rate Loans denominated in an Alternative Currency shall be
prepaid, or redenominated into Dollars in the amount of the Dollar Equivalent
thereof, on the last day of the then current Interest Period with respect
thereto.

 

(d)           The
Administrative Agent shall promptly notify the Company and the Lenders of the
interest rate applicable to any Interest Period for Eurocurrency Rate Loans
upon determination of such interest rate. 
At any time that Base Rate Loans are outstanding, the Administrative
Agent shall notify the Company and the Lenders of any change in Bank of America’s
prime rate used in determining the Base Rate promptly following the public
announcement of such change.

 

(e)           After
giving effect to all Committed Borrowings, all conversions of Committed Loans
from one Type to the other, and all continuations of Committed Loans as the
same Type, there shall not be more than fifteen  Interest
Periods in effect with respect to Committed Loans.

 

(f)            The
Company may at any time and from time to time, upon prior written notice by the
Company to the Administrative Agent, increase the Aggregate Commitments (but
not the Letter of Credit Sublimit, Alternative Currency Sublimit or the Swing
Line Sublimit) by up to $500,000,000 in excess of the Aggregate Commitments in
effect on the Closing Date with additional Commitments from any existing Lender
or new Commitments from any other Person selected by the Company and approved
by the Administrative Agent; provided that:

 

(i)            any such increase shall be in a minimum principal amount
of $10,000,000 and in integral multiples of $5,000,000 in excess thereof and
the Company may make a maximum of three requests;

 

(ii)           no Default or Event of Default shall exist and be
continuing at the time of any such increase;

 

31

 

(iii)          no existing Lender shall be under any obligation to
increase its Commitment and any such decision whether to increase its
Commitment shall be in such Lender’s sole and absolute discretion;

 

(iv)          any new Lender shall join this Agreement by executing such
joinder documents required by the Administrative Agent; and

 

(v)           as a condition precedent to such increase, the Company
shall deliver to the Administrative Agent a certificate dated as of the date of
such increase signed by a Responsible Officer of each Loan Party (A) certifying
and attaching the resolutions adopted by such Loan Party approving or
consenting to such increase or the resultant increased amount, (B) in the
case of any Borrower, certifying that, before and after giving effect to such
increase, (1) the representations and warranties contained in Article VI
and the other Loan Documents are true and correct in all material respects on
and as of the date of such increase, except to the extent that such
representations and warranties specifically refer to an earlier date, in which
case they are true and correct in all material respects as of such earlier
date, and except that for purposes of this Section 2.02(f), the
representations and warranties contained in subsections (a) and (b) of
Section 6.03 shall be deemed to refer to the most recent statements
furnished pursuant to clauses (a) and (b), respectively, of Section 7.01,
and (2) no Default or Event of Default exists and (C) certifying that
notice, if any, required to be given to the PBCG under the PBGC Agreements has
been properly and timely given.

 

The
Company shall prepay any Committed Loans owing by it and outstanding on the
date of any such increase (and pay any additional amounts required pursuant to Section 3.05)
to the extent necessary to keep the outstanding Committed Loans ratable with
any revised Commitments arising from any nonratable increase in the Commitments
under this Section.  In connection with
any such increase in the Aggregate Commitments, Schedule 2.01 shall be
revised by the Administrative Agent to reflect the new Commitments and
distributed to the Company and the Lenders.

 

2.03        Letters of Credit.

 

(a)           The
Letter of Credit Commitment.

 

(i)            Subject to the terms and conditions set forth herein, (A) the
L/C Issuer agrees, in reliance upon the agreements of the Lenders set forth in
this Section 2.03, (1) from time to time on any Business Day
during the period from the Closing Date until the Letter of Credit Expiration
Date, to issue Letters of Credit denominated in Dollars or in one or more
Alternative Currencies for the account of the Company, and to amend  or extend Letters of Credit previously issued by it, in
accordance with subsection (b) below, and (2) to honor drawings
under the Letters of Credit; and (B) the Lenders severally agree to
participate in Letters of Credit issued for the account of the Company and any
drawings thereunder; provided that after giving effect to any L/C Credit
Extension with respect to any Letter of Credit, (v) the Total Outstandings
shall not exceed the Aggregate Commitments, (x) the aggregate Outstanding
Amount of the Committed Loans of any Lender, plus such Lender’s
Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus
such Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line
Loans shall not exceed such Lender’s Commitment, (y) the Outstanding
Amount of the L/C Obligations shall not exceed the Letter of Credit Sublimit
and (z) the aggregate Outstanding Amount of the L/C Obligations
denominated in an Alternative Currency plus the aggregate Outstanding Amount of
Committed Loans denominated in an Alternative Currency shall not exceed the
Alternative Currency Sublimit.  Each
request by the Company for the issuance or amendment of a Letter of Credit
shall be deemed to be a representation by the Company that the 

 

32

 

L/C
Credit Extension so requested complies with the conditions set forth in the
proviso to the preceding sentence. 
Within the foregoing limits, and subject to the terms and conditions
hereof, the Company’s ability to obtain Letters of Credit shall be fully
revolving, and accordingly the Company may, during the foregoing period, obtain
Letters of Credit to replace Letters of Credit that have expired or that have
been drawn upon and reimbursed.

 

(ii)           The L/C Issuer shall not issue any Letter of Credit, if:

 

(A)          subject
to Section 2.03(b)(iii),  the expiry
date of such requested Letter of Credit would occur more than twelve months
after the date of issuance or last extension, unless the Required Lenders have
approved such expiry date; or

 

(B)           the
expiry date of such requested Letter of Credit would occur after the Letter of
Credit Expiration Date, unless all the Lenders have approved such expiry date.

 

(iii)          The L/C Issuer shall not be under any obligation to issue
any Letter of Credit if:

 

(A)          any
order, judgment or decree of any Governmental Authority or arbitrator shall by
its terms purport to enjoin or restrain the L/C Issuer from issuing such Letter
of Credit, or any Law applicable to the L/C Issuer or any request or directive
(whether or not having the force of law) from any Governmental Authority with
jurisdiction over the L/C Issuer shall prohibit, or request that the L/C Issuer
refrain from, the issuance of letters of credit generally or such Letter of
Credit in particular or shall impose upon the L/C Issuer with respect to such
Letter of Credit any restriction, reserve or capital requirement (for which the
L/C Issuer is not otherwise compensated hereunder) not in effect on the Closing
Date, or shall impose upon the L/C Issuer any unreimbursed loss, cost or
expense which was not applicable on the Closing Date and which the L/C Issuer
in good faith deems material to it;

 

(B)           the
issuance of such Letter of Credit would violate one or more policies of the L/C
Issuer;

 

(C)           except
as otherwise agreed by the Administrative Agent and the L/C Issuer or as
identified on Schedule 2.03, such Letter of Credit is in an initial
stated amount less than $50,000, in the case of a commercial Letter of Credit,
or $100,000, in the case of a standby Letter of Credit; or

 

(D)          except as otherwise agreed by the Administrative
Agent and the L/C Issuer, such Letter of Credit is to be denominated in a
currency other than Dollars or an Alternative Currency; or

 

(E)           any
Lender is at that time a Defaulting Lender, unless the L/C Issuer has entered
into arrangements, including the delivery of Cash Collateral, satisfactory to
the L/C Issuer (in its sole discretion) with the Company or such Lender to
eliminate the L/C Issuer’s actual or potential Fronting Exposure (after giving
effect to Section 2.16(a)(iv)) with respect to the Defaulting
Lender arising from either the Letter of Credit then proposed to be issued or
that Letter of Credit and all other L/C Obligations as to which the L/C Issuer
has actual or potential Fronting Exposure, as it may elect in its sole
discretion.

 

33

 

(iv)          The L/C Issuer shall be under no obligation to amend any
Letter of Credit if (A) the L/C Issuer would have no obligation at such time to
issue such Letter of Credit in its amended form under the terms hereof, or (B)
the beneficiary of such Letter of Credit does not accept the proposed amendment
to such Letter of Credit.

 

(v)           The L/C Issuer shall act on behalf of the Lenders with
respect to any Letters of Credit issued by it and the documents associated
therewith, and the L/C Issuer shall have all of the benefits and immunities
(A) provided to the Administrative Agent in Article X with
respect to any acts taken or omissions suffered by the L/C Issuer in connection
with Letters of Credit issued by it or proposed to be issued by it and Issuer
Documents pertaining to such Letters of Credit as fully as if the term “Administrative
Agent” as used in Article X included the L/C Issuer with respect to such
acts or omissions, and (B) as additionally provided herein with respect to the
L/C Issuer.

 

(b)           Procedures
for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of
Credit.

 

(i)            Each Letter of Credit shall be issued or amended, as the
case may be, upon the request of the Company delivered to the L/C Issuer (with
a copy to the Administrative Agent) in the form of a Letter of Credit
Application, appropriately completed and signed by a Responsible Officer of the
Company.  Such Letter of Credit
Application must be received by the L/C Issuer and the Administrative Agent not
later than 11:00 a.m.  at least two
Business Days (or such later date and time as the Administrative Agent and the
L/C Issuer may agree in a particular instance in their sole discretion) prior
to the proposed issuance date or date of amendment, as the case may be.  In the case of a request for an initial
issuance of a Letter of Credit, such Letter of Credit Application shall specify
in form and detail reasonably satisfactory to the L/C Issuer: (A) the proposed
issuance date of the requested Letter of Credit (which shall be a Business
Day); (B) the amount and requested currency thereof and in the absence of
specification of currency shall be deemed a request for a Letter of Credit
denominated in Dollars; (C) whether such Letter of Credit shall be a commercial
Letter of Credit or a standby Letter of Credit, (D) the expiry date thereof;
(E) the name and address of the beneficiary thereof; (F) the documents to be
presented by such beneficiary in case of any drawing thereunder; (G) the full
text of any certificate to be presented by such beneficiary in case of any
drawing thereunder; and (H) such other matters as the L/C Issuer may reasonably
require.  In the case of a request for an
amendment of any outstanding Letter of Credit, such Letter of Credit Application
shall specify in form and detail reasonably satisfactory to the L/C Issuer (A)
the Letter of Credit to be amended; (B) the proposed date of amendment thereof
(which shall be a Business Day); (C) the nature of the proposed amendment; and
(D) such other matters as the L/C Issuer may reasonably require.  Additionally, the Company shall furnish to
the L/C Issuer and the Administrative Agent such other documents and
information pertaining to such requested Letter of Credit issuance or
amendment, including any Issuer Documents, as the L/C Issuer or the
Administrative Agent may reasonably require.

 

(ii)           Promptly after receipt of any Letter of Credit
Application, the L/C Issuer will confirm with the Administrative Agent (by
telephone or in writing) that the Administrative Agent has received a copy of
such Letter of Credit Application from the Company and, if not, the L/C Issuer
will provide the Administrative Agent with a copy thereof.  Unless the L/C Issuer has received written
notice from any Lender, the Administrative Agent or any Loan Party, at least
one Business Day prior to the requested date of issuance or amendment of the
applicable Letter of Credit, that one or more applicable conditions contained
in Article V shall not then be satisfied, then, subject to the terms and
conditions hereof, the L/C Issuer shall, on the requested date, issue a Letter
of Credit for the account of the Company or enter into the applicable
amendment, as the 

 

34

 

case
may be, in each case in accordance with the L/C Issuer’s usual and customary
business practices.  Immediately upon the
issuance of each Letter of Credit, each Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the L/C Issuer a risk
participation in such Letter of Credit in an amount equal to the product of
such Lender’s Applicable Percentage times the amount of such Letter of
Credit.

 

(iii)          If the Company so requests in any applicable Letter of
Credit Application, the L/C Issuer may, in its sole and absolute discretion,
agree to issue a Letter of Credit that has automatic extension provisions
(each, an “Auto-Extension Letter of Credit”); provided that any
such Auto-Extension Letter of Credit must permit the L/C Issuer to prevent any
such extension at least once in each twelve-month period (commencing with the
date of issuance of such Letter of Credit) by giving prior notice to the
beneficiary thereof not later than a day (the “Non-Extension Notice Date”)
in each such twelve-month period to be agreed upon at the time such Letter of
Credit is issued.  Unless otherwise
directed by the L/C Issuer, the Company shall not be required to make a
specific request to the L/C Issuer for any such extension.  Once an Auto-Extension Letter of Credit has
been issued, the Lenders shall be deemed to have authorized (but may not
require) the L/C Issuer to permit the extension of such Letter of Credit at any
time to an expiry date not later than the Letter of Credit Expiration Date; provided,
however, that the L/C Issuer shall not permit any such extension if
(A) the L/C Issuer has determined that it would not be permitted, or would
have no obligation, at such time to issue such Letter of Credit in its revised
form (as extended) under the terms hereof (by reason of the provisions of
clause (ii) or (iii) of Section 2.03(a) or otherwise), or
(B) it has received notice (which may be by telephone or in writing) on or
before the day that is five Business Days before the Non-Extension Notice
Date from the Administrative Agent, any Lender or the Company that one or
more of the applicable conditions specified in Section 5.02 is not then
satisfied, and in each such case directing the L/C Issuer not to permit such
extension.

 

(iv)          Promptly after its delivery of any Letter of Credit or any
amendment to a Letter of Credit to an advising bank with respect thereto or to
the beneficiary thereof, the L/C Issuer will also deliver to the Company and
the Administrative Agent a true and complete copy of such Letter of Credit or
amendment.

 

(c)           Drawings
and Reimbursements; Funding of Participations.

 

(i)            Upon receipt from the beneficiary of any Letter of Credit
of any notice of a drawing under such Letter of Credit, the L/C Issuer shall
notify the Company and the Administrative Agent thereof.  In the case of a Letter of Credit denominated
in an Alternative Currency, the Company shall reimburse the L/C Issuer in such
Alternative Currency, unless (A) the L/C Issuer (at its option) shall have
specified in such notice that it will require reimbursement in Dollars, or (B)
in the absence of any such requirement for reimbursement in Dollars, the
Company shall have notified the L/C Issuer promptly following receipt of the
notice of drawing that the Company will reimburse the L/C Issuer in Dollars.  In the case of any such reimbursement in
Dollars of a drawing under a Letter of Credit denominated in an Alternative
Currency, the L/C Issuer shall notify the Company of the Dollar Equivalent of
the amount of the drawing promptly following the determination thereof.  Not later than 3:00 p.m. on the date of
any payment by the L/C Issuer under a Letter of Credit to be reimbursed in
Dollars if the L/C Issuer delivers notice of such payment by 11:00 a.m. on such
date (or, if notice of such payment by the L/C Issuer is made after 11:00 a.m.,
not later than 10:00 a.m. on the succeeding Business Day), or the Applicable
Time on the date of any payment by the L/C Issuer (or the next succeeding
Business Day, as the case may be) under a Letter of Credit to be reimbursed in
an Alternative Currency (each such date, an “Honor Date”), the Company
shall reimburse the L/C 

 

35

 

Issuer
through the Administrative Agent in an amount equal to the amount of such
drawing and in the applicable currency. 
If the Company fails to so reimburse the L/C Issuer by such time, the
Administrative Agent shall promptly notify each Lender of the Honor Date, the
amount of the unreimbursed drawing (expressed in Dollars in the amount of the
Dollar Equivalent thereof in the case of a Letter of Credit denominated in an
Alternative Currency) (the “Unreimbursed Amount”), and the amount of
such Lender’s Applicable Percentage thereof. 
In such event, the Company shall be deemed to have requested a Committed
Borrowing of Base Rate Loans to be disbursed on the Honor Date in an amount
equal to the Unreimbursed Amount, without regard to the minimum and multiples
specified in Section 2.02 for the principal amount of Base Rate
Loans, but subject to the amount of the unutilized portion of the Aggregate
Commitments and the conditions set forth in Section 5.02 (other than the
delivery of a Committed Loan Notice). 
Any notice given by the L/C Issuer or the Administrative Agent pursuant
to this Section 2.03(c)(i) may be given by telephone if immediately
confirmed in writing; provided that the lack of such an immediate
confirmation shall not affect the conclusiveness or binding effect of such
notice.

 

(ii)           Each Lender shall upon any notice pursuant to Section 2.03(c)(i)
make funds available (and the Administrative Agent may apply Cash Collateral
provided for this purpose) for the account of the L/C Issuer, in Dollars, at
the Administrative Agent’s Office for Dollar-denominated payments in an amount
equal to its Applicable Percentage of the Unreimbursed Amount not later than
1:00 p.m. on the Business Day specified in such notice by the
Administrative Agent, whereupon, subject to the provisions of Section 2.03(c)(iii),
each Lender that so makes funds available shall be deemed to have made a Base
Rate Committed Loan to the Company in such amount.  The Administrative Agent shall remit the
funds so received to the L/C Issuer in Dollars.

 

(iii)          With respect to any Unreimbursed Amount that is not fully
refinanced by a Committed Borrowing of Base Rate Loans because the conditions
set forth in Section 5.02 cannot be satisfied or for any other reason,
the Company shall be deemed to have incurred from the L/C Issuer an L/C
Borrowing in the amount of the Unreimbursed Amount that is not so refinanced,
which L/C Borrowing shall be due and payable on demand (together with interest)
and shall bear interest at the Default Rate. 
In such event, each Lender’s payment to the Administrative Agent for the
account of the L/C Issuer pursuant to Section 2.03(c)(ii) shall be
deemed payment in respect of its participation in such L/C Borrowing and shall
constitute an L/C Advance from such Lender in satisfaction of its participation
obligation under this Section 2.03.

 

(iv)          Until a Lender funds its Committed Loan or L/C Advance
pursuant to this Section 2.03(c) to reimburse the L/C Issuer for
any amount drawn under any Letter of Credit, interest in respect of such Lender’s
Applicable Percentage of such amount shall be solely for the account of the L/C
Issuer.

 

(v)           Each Lender’s obligation to make Committed Loans or L/C
Advances to reimburse the L/C Issuer for amounts drawn under Letters of Credit,
as contemplated by this Section 2.03(c), shall be absolute and
unconditional and shall not be affected by any circumstance, including (A) any
setoff, counterclaim, recoupment, defense or other right which such Lender may
have against the L/C Issuer, the Company, any Subsidiary or any other Person
for any reason whatsoever; (B) the occurrence or continuance of a Default or
Event of Default, or (C) any other occurrence, event or condition, whether or
not similar to any of the foregoing; provided, however, that each
Lender’s obligation to make Committed Loans pursuant to this Section 2.03(c)
is subject to the conditions set forth in Section 5.02 (other than
delivery by the Company of a Committed Loan Notice).  No such making of an L/C Advance shall
relieve or otherwise impair the obligation of the Company to reimburse the L/C
Issuer for the amount of 

 

36

 

any
payment made by the L/C Issuer under any Letter of Credit, together with
interest as provided herein.

 

(vi)          If any Lender fails to make available to the Administrative
Agent for the account of the L/C Issuer any amount required to be paid by such
Lender pursuant to the foregoing provisions of this Section 2.03(c)
by the time specified in Section 2.03(c)(ii), then, without
limiting the other provisions of this Agreement, the L/C Issuer shall be
entitled to recover from such Lender (acting through the Administrative Agent),
on demand, such amount with interest thereon for the period from the date such
payment is required to the date on which such payment is immediately available
to the L/C Issuer at a rate per annum equal to the applicable Overnight Rate
from time to time in effect.  A
certificate of the L/C Issuer submitted to any Lender (through the
Administrative Agent) with respect to any amounts owing under this
clause (vi) shall be conclusive absent manifest error.

 

(d)           Repayment
of Participations.

 

(i)            At any time after the L/C Issuer has made a payment under
any Letter of Credit and has received from any Lender such Lender’s L/C Advance
in respect of such payment in accordance with Section 2.03(c), if
the Administrative Agent receives for the account of the L/C Issuer any payment
in respect of the related Unreimbursed Amount or interest thereon (whether
directly from the Company or otherwise, including proceeds of Cash Collateral
applied thereto by the Administrative Agent), the Administrative Agent will
distribute to such Lender its Applicable Percentage thereof (appropriately
adjusted, in the case of interest payments, to reflect the period of time
during which such Lender’s L/C Advance was outstanding) in Dollars and in the
same funds as those received by the Administrative Agent.

 

(ii)           If any payment received by the Administrative Agent for
the account of the L/C Issuer pursuant to Section 2.03(c)(i) is
required to be returned under any of the circumstances described in Section 11.05
(including pursuant to any settlement entered into by the L/C Issuer in its
discretion), each Lender shall pay to the Administrative Agent for the account
of the L/C Issuer its Applicable Percentage thereof on demand of the
Administrative Agent, plus interest thereon from the date of such demand to the
date such amount is returned by such Lender, at a rate per annum equal to the
applicable Overnight Rate from time to time in effect.  The obligations of the Lenders under this
clause shall survive the payment in full of the Obligations and the termination
of this Agreement.

 

(e)           Obligations
Absolute.  The obligation of the
Company to reimburse the L/C Issuer for each drawing under each Letter of
Credit and to repay each L/C Borrowing shall be absolute, unconditional and
irrevocable, and shall be paid strictly in accordance with the terms of this
Agreement under all circumstances, including the following:

 

(i)            any lack of validity or enforceability of such Letter of
Credit, this Agreement, or any other Loan Document;

 

(ii)           the existence of any claim, counterclaim, setoff, defense
or other right that the Company or any Subsidiary may have at any time against
any beneficiary or any transferee of such Letter of Credit (or any Person for
whom any such beneficiary or any such transferee may be acting), the L/C Issuer
or any other Person, whether in connection with this Agreement, the
transactions contemplated hereby or by such Letter of Credit or any agreement
or instrument relating thereto, or any unrelated transaction;

 

37

 

(iii)          any draft, demand, certificate or other document presented
under such 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; or any loss or delay in the transmission or otherwise of any
document required in order to make a drawing under such Letter of Credit;

 

(iv)          any payment by the L/C Issuer under such Letter of Credit
against presentation of a draft or certificate that does not strictly comply
with the terms of such Letter of Credit; or any payment made by the L/C Issuer
under such Letter of Credit to any Person purporting to be a trustee in
bankruptcy, debtor-in-possession, assignee for the benefit of creditors,
liquidator, receiver or other representative of or successor to any beneficiary
or any transferee of such Letter of Credit, including any arising in connection
with any proceeding under any Debtor Relief Law;

 

(v)           any adverse change in the relevant exchange rates or in
the availability of the relevant Alternative Currency to the Company or any
Subsidiary or in the relevant currency markets generally; or

 

(vi)          any other circumstance or happening whatsoever, whether or
not similar to any of the foregoing, including any other circumstance that
might otherwise constitute a defense available to, or a discharge of, the
Company or any Subsidiary.

 

The
Company shall promptly examine a copy of each Letter of Credit and each
amendment thereto that is delivered to it and, in the event of any claim of
noncompliance with the Company’s instructions or other irregularity, the
Company will immediately notify the L/C Issuer.

 

(f)            Role
of L/C Issuer.  Each Lender and the
Company agree that, in paying any drawing under a Letter of Credit, the L/C
Issuer shall not have any responsibility to obtain any document (other than any
sight draft, certificates and documents expressly required by the Letter of
Credit) or to ascertain or inquire as to the validity or accuracy of any such
document or the authority of the Person executing or delivering any such
document.  None of the L/C Issuer, the
Administrative Agent, any of their respective Related Parties nor any
correspondent, participant or assignee of the L/C Issuer shall be liable to any
Lender for (i) any action taken or omitted in connection herewith at the
request or with the approval of the Lenders or the Required Lenders, as
applicable; (ii) any action taken or omitted in the absence of gross negligence
or willful misconduct; or (iii) the due execution, effectiveness, validity or
enforceability of any document or instrument related to any Letter of Credit or
Issuer Document.  The Company hereby
assumes all risks of the acts or omissions of any beneficiary or transferee
with respect to its use of any Letter of Credit; provided, however,
that this assumption is not intended to, and shall not, preclude the Company’s
pursuing such rights and remedies as it may have against the beneficiary or
transferee at law or under any other agreement. 
None of the L/C Issuer, the Administrative Agent, any of their
respective Related Parties nor any correspondent, participant or assignee of
the L/C Issuer shall be liable or responsible for any of the matters described
in clauses (i) through (vi) of Section 2.03(e); provided,
however, that anything in such clauses to the contrary notwithstanding,
the Company may have a claim against the L/C Issuer, and the L/C Issuer may be
liable to the Company, to the extent, but only to the extent, of any direct, as
opposed to consequential or exemplary, damages suffered by the Company which
were caused by the L/C Issuer’s willful misconduct or gross negligence or the
L/C Issuer’s willful failure to pay under any Letter of Credit after the presentation
to it by the beneficiary of a sight draft and certificate(s) strictly complying
with the terms and conditions of a Letter of Credit.  In furtherance and not in limitation of the
foregoing, the L/C Issuer may accept documents that appear on their face to be
in order, without responsibility for further investigation and the L/C Issuer
shall not be responsible for the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign a Letter of
Credit or the rights or benefits thereunder or proceeds thereof, in whole or in
part, which may prove to be invalid or ineffective for any reason.

 

38

 

(g)           Applicability
of ISP and UCP.  Unless otherwise expressly agreed
by the L/C Issuer and the Company when a Letter of Credit is issued, (i) the
rules of the ISP shall apply to each standby Letter of Credit, and (ii) the
rules of the Uniform Customs and Practice for Documentary Credits, as most
recently published by the International Chamber of Commerce at the time of
issuance shall apply to each commercial Letter of Credit and, in either case,
to the extent not inconsistent with and if requested by any Borrower in the
applicable Letter of Credit Application, the laws of the State of New York.

 

(h)           Letter
of Credit Fees.  The Company shall
pay to the Administrative Agent for the account of each Lender in accordance
with its Applicable Percentage, in Dollars, a Letter of Credit fee (the “Letter
of Credit Fee”)  for each
standby and each commercial Letter of Credit equal to the Applicable Rate times
the Dollar Equivalent of the daily amount available to be drawn under such
Letter of Credit; provided, however, any Letter of Credit Fees
otherwise payable for the account of a Defaulting Lender with respect to any
Letter of Credit as to which such Defaulting Lender has not provided Cash
Collateral satisfactory to the L/C Issuer pursuant to this Section 2.03
shall be payable, to the maximum extent permitted by applicable Law, to the
other Lenders in accordance with the upward adjustments in their respective
Applicable Percentages allocable to such Letter of Credit pursuant to Section
2.16(a)(iv), with the balance of such fee, if any, payable to the L/C
Issuer for its own account.  For purposes
of computing the daily amount available to be drawn under any Letter of Credit,
the amount of such Letter of Credit shall be determined in accordance with Section 1.08.  Letter of Credit Fees shall be (i) computed
on a quarterly basis in arrears and (ii) due and payable on the last Business
Day of each March, June, September and December, commencing with the first
such date to occur after the issuance of such Letter of Credit, on the Letter
of Credit Expiration Date and thereafter on demand.  If there is any change in the Applicable Rate
during any quarter, the daily amount available to be drawn under each Letter of
Credit shall be computed and multiplied by the Applicable Rate separately for
each period during such quarter that such Applicable Rate was in effect.

 

(i)            Fronting
Fee and Documentary and Processing Charges Payable to L/C Issuer.  The Company shall pay directly to the L/C
Issuer for its own account, in Dollars, a fronting fee (i) with respect to each
commercial Letter of Credit, at the rate per annum specified in the Fee Letter
computed on the Dollar Equivalent of the amount of such Letter of Credit, and
payable upon the issuance thereof, (ii) with respect to any amendment of a
commercial Letter of Credit increasing the amount of such Letter of Credit, at
a rate separately agreed between the Company and the L/C Issuer, computed on
the Dollar Equivalent of the amount of such increase, and payable upon the
effectiveness of such amendment, and (iii) with respect to each standby Letter
of Credit, at the rate per annum specified in the Fee Letter computed on the
Dollar Equivalent of the daily amount available to be drawn under such Letter
of Credit on a quarterly basis in arrears. 
Such fronting fee shall be due and payable on the last Business Day of
each March, June, September and December in respect of the most recently-ended
quarterly period (or portion thereof, in the case of the first payment),
commencing with the first such date to occur after the issuance of such Letter
of Credit, on the Letter of Credit Expiration Date and thereafter on
demand.  For purposes of computing the
daily amount available to be drawn under any Letter of Credit, the amount of
such Letter of Credit shall be determined in accordance with Section 1.08.  In addition, the Company shall pay directly
to the L/C Issuer for its own account, in Dollars, the customary issuance,
presentation, amendment and other processing fees, and other standard costs and
charges, of the L/C Issuer relating to letters of credit as from time to time
in effect.  Such customary fees and
standard costs and charges are due and payable on demand and are nonrefundable.

 

(j)            Conflict
with Issuer Documents.  In the event
of any conflict between the terms hereof and the terms of any Issuer Document,
the terms hereof shall control.

 

39

 

(k)           Letters
of Credit Issued for Subsidiaries. 
Notwithstanding that a Letter of Credit issued or outstanding hereunder
is in support of any obligations of, or is for the account of, a Subsidiary,
the Company shall be obligated to reimburse the L/C Issuer hereunder for any
and all drawings under such Letter of Credit. 
The Company hereby acknowledges that the issuance of Letters of Credit
for the account of Subsidiaries inures to the benefit of the Company, and that
the Company’s business derives substantial benefits from the businesses of such
Subsidiaries.

 

2.04        Swing Line Loans.

 

(a)           The
Swing Line.  Subject to the terms and
conditions set forth herein, the Swing Line Lender agrees, in reliance upon the
agreements of the other Lenders set forth in this Section 2.04, to
make loans in Dollars (each such loan, a “Swing Line Loan”) to the
Company from time to time on any Business Day during the Availability Period in
an aggregate amount not to exceed at any time outstanding the amount of the
Swing Line Sublimit, notwithstanding the fact that such Swing Line Loans, when
aggregated with the Applicable Percentage of the Outstanding Amount of
Committed Loans and L/C Obligations of the Lender acting as Swing Line Lender,
may exceed the amount of such Lender’s Commitment; provided, however,
that after giving effect to any Swing Line Loan, (i) the Total
Outstandings shall not exceed the Aggregate Commitments, and (ii) the
aggregate Outstanding Amount of the Committed Loans of any Lender, plus
such Lender’s Applicable Percentage of the Outstanding Amount of all L/C
Obligations, plus such Lender’s Applicable Percentage of the Outstanding
Amount of all Swing Line Loans shall not exceed such Lender’s Commitment, and provided,
further, that the Company shall not use the proceeds of any Swing Line
Loan to refinance any outstanding Swing Line Loan.  Within the foregoing limits, and subject to
the other terms and conditions hereof, the Company may borrow under this Section 2.04,
prepay under Section 2.05, and reborrow under this Section 2.04.  Each Swing Line Loan shall be a Base Rate
Loan.  Immediately upon the making of a
Swing Line Loan, each Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the Swing Line Lender a risk
participation in such Swing Line Loan in an amount equal to the product of such
Lender’s Applicable Percentage times the amount of such Swing Line Loan.

 

(b)           Borrowing
Procedures.  Each Swing Line
Borrowing shall be made upon the Company’s irrevocable notice to the Swing Line
Lender and the Administrative Agent, which may be given by telephone.  Each such notice must be received by the
Swing Line Lender and the Administrative Agent not later than
1:00 p.m.  on the requested
borrowing date, and shall specify (i) the amount to be borrowed, which shall be
a minimum of $100,000, and (ii) the requested borrowing date, which shall be a
Business Day.  Each such telephonic
notice must be confirmed promptly by delivery to the Swing Line Lender and the
Administrative Agent of a written Swing Line Loan Notice, appropriately
completed and signed by a Responsible Officer of the Company.  Promptly after receipt by the Swing Line
Lender of any telephonic Swing Line Loan Notice, the Swing Line Lender will
confirm with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has also received such Swing Line Loan Notice and, if not,
the Swing Line Lender will notify the Administrative Agent (by telephone or in
writing) of the contents thereof.  Unless
the Swing Line Lender has received notice (by telephone or in writing) from the
Administrative Agent (including at the request of any Lender) prior to
2:00 p.m. on the date of the proposed Swing Line Borrowing (A) directing
the Swing Line Lender not to make such Swing Line Loan as a result of the
limitations set forth in the proviso to the first sentence of Section 2.04(a),
or (B) that one or more of the applicable conditions specified in Section
5.02 is not then satisfied, then, subject to the terms and conditions
hereof, the Swing Line Lender will, not later than 3:00 p.m. on the
borrowing date specified in such Swing Line Loan Notice, make the amount of its
Swing Line Loan available to the Company at its office by crediting the account
of the Company on the books of the Swing Line Lender in Same Day Funds.

 

40

 

(c)           Refinancing
of Swing Line Loans.

 

(i)            The Company agrees to repay all Swing Line Loans within
four Business Days of demand therefor by the Swing Line Lender.  Any such demand by the Swing Line Lender
shall be in its sole and absolute discretion. 
If the Company fails to repay the Swing Line Loans within four Business
Days of demand therefor, the Swing Line Lender shall request, on behalf of the
Company (which hereby irrevocably authorizes the Swing Line Lender to so
request on its behalf), that each Lender make a Base Rate Committed Loan in an
amount equal to such Lender’s Applicable Percentage of the amount of Swing Line
Loans then outstanding.  Such request
shall be made in writing (which written request shall be deemed to be a
Committed Loan Notice for purposes hereof) and in accordance with the
requirements of Section 2.02, without regard to the minimum and
multiples specified therein for the principal amount of Base Rate Loans, but
subject to the unutilized portion of the Aggregate Commitments and the
conditions set forth in Section 5.02. 
The Swing Line Lender shall furnish the Company with a copy of the
applicable Committed Loan Notice concurrently with delivering such notice to
the Administrative Agent.  Each Lender
shall make an amount equal to its Applicable Percentage of the amount specified
in such Committed Loan Notice available to the Administrative Agent in Same Day
Funds (and the Administrative Agent may apply Cash Collateral available with
respect to the applicable Swing Line Loan) for the account of the Swing Line
Lender at the Administrative Agent’s Office for Dollar-denominated payments not
later than 1:00 p.m. on the day specified in such Committed Loan Notice,
whereupon, subject to Section 2.04(c)(ii), each Lender that so
makes funds available shall be deemed to have made a Base Rate Committed Loan
to the Company in such amount.  The
Administrative Agent shall remit the funds so received to the Swing Line
Lender.

 

(ii)           If for any reason any Swing Line Loan cannot be refinanced
by such a Committed Borrowing in accordance with Section 2.04(c)(i),
the request for Base Rate Committed Loans submitted by the Swing Line Lender as
set forth herein shall be deemed to be a request by the Swing Line Lender that
each of the Lenders fund its risk participation in the relevant Swing Line Loan
and each Lender’s payment to the Administrative Agent for the account of the
Swing Line Lender pursuant to Section 2.04(c)(i) shall be deemed
payment in respect of such participation.

 

(iii)          If any Lender fails to make available to the Administrative
Agent for the account of the Swing Line Lender any amount required to be paid
by such Lender pursuant to the foregoing provisions of this Section 2.04(c)
by the time specified in Section 2.04(c)(i), the Swing Line Lender
shall be entitled to recover from such Lender (acting through the
Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment is required to the date on which such payment
is immediately available to the Swing Line Lender at a rate per annum equal to
the applicable Overnight Rate from time to time in effect.  A certificate of the Swing Line Lender
submitted to any Lender (through the Administrative Agent) with respect to any
amounts owing under this clause (iii) shall be conclusive absent manifest
error.

 

(iv)          Each Lender’s obligation to make Committed Loans or to
purchase and fund risk participations in Swing Line Loans pursuant to this Section 2.04(c)
shall be absolute and unconditional and shall not be affected by any
circumstance, including (A) any setoff, counterclaim, recoupment, defense or
other right which such Lender may have against the Swing Line Lender, the
Company or any other Person for any reason whatsoever, (B) the occurrence or
continuance of a Default or Event of Default, or (C) any other occurrence,
event or condition, whether or not similar to any of the foregoing; provided,
however, that each Lender’s obligation to make Committed Loans pursuant
to this Section 2.04(c) is subject to the conditions set forth in 

 

41

 

Section
5.02.  No such funding of risk
participations shall relieve or otherwise impair the obligation of the Company
to repay Swing Line Loans, together with interest as provided herein.

 

(d)           Repayment
of Participations.

 

(i)            At any time after any Lender has purchased and funded a
risk participation in a Swing Line Loan, if the Swing Line Lender receives any
payment on account of such Swing Line Loan, the Swing Line Lender will
distribute to such Lender its Applicable Percentage of such payment
(appropriately adjusted, in the case of interest payments, to reflect the
period of time during which such Lender’s risk participation was funded) in the
same funds as those received by the Swing Line Lender.

 

(ii)           If any payment received by the Swing Line Lender in
respect of principal or interest on any Swing Line Loan is required to be
returned by the Swing Line Lender under any of the circumstances described in Section 11.05
(including pursuant to any settlement entered into by the Swing Line Lender in
its discretion), each Lender shall pay to the Swing Line Lender its Applicable
Percentage thereof on demand of the Administrative Agent, plus interest thereon
from the date of such demand to the date such amount is returned, at a rate per
annum equal to the applicable Overnight Rate. 
The Administrative Agent will make such demand upon the request of the
Swing Line Lender.  The obligations of
the Lenders under this clause shall survive the payment in full of the
Obligations and the termination of this Agreement.

 

(e)           Interest
for Account of Swing Line Lender. 
The Swing Line Lender shall be responsible for invoicing the Company for
interest on the Swing Line Loans.  Until
a Lender funds its Base Rate Committed Loan or risk participation pursuant to
this Section 2.04 to refinance such Lender’s Applicable Percentage
of any Swing Line Loan, interest in respect of such Applicable Percentage shall
be solely for the account of the Swing Line Lender.

 

(f)            Payments
Directly to Swing Line Lender.  The
Company shall make all payments of principal and interest in respect of the
Swing Line Loans directly to the Swing Line Lender.

 

2.05        Prepayments.

 

(a)           Each
Borrower may, upon notice from the Company to the Administrative Agent, at any
time or from time to time voluntarily prepay Committed Loans in whole or in
part without premium or penalty; provided that (i) such notice must
be received by the Administrative Agent not later than 11:00 a.m.
(A) three Business Days prior to any date of prepayment of Eurocurrency
Rate Loans denominated in Dollars, (B) four Business Days (or five, in the case
of prepayment of Loans denominated in Special Notice Currencies) prior to any
date of prepayment of Eurocurrency Rate Loans denominated in Alternative
Currencies, and (C) on the date of prepayment of Base Rate Committed
Loans; (ii) any prepayment of Eurocurrency Rate Loans denominated in
Dollars shall be in a principal amount of $5,000,000 or a whole multiple of
$1,000,000 in excess thereof; (iii) any prepayment of Eurocurrency Rate
Loans denominated in Alternative Currencies shall be in a minimum principal
amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof; and
(iv) any prepayment of Base Rate Committed Loans shall be in a principal
amount of $1,000,000 or a whole multiple of $100,000 in excess thereof or, in
each case, if less, the entire principal amount thereof then outstanding.  Each such notice shall specify the date and
amount of such prepayment and the Type(s) of Committed Loans to be prepaid and,
if Eurocurrency Loans are to be prepaid, the Interest Period(s) of such
Loans.  The Administrative Agent will
promptly notify each Lender of its receipt of each such notice, and of the
amount of such Lender’s Applicable Percentage of such prepayment.  If such notice is given by the Company, the
applicable Borrower shall make such prepayment and the payment amount specified
in such notice shall be due and 

 

42

 

payable
on the date specified therein.  Any
prepayment of a Eurocurrency Rate Loan shall be accompanied by all accrued
interest on the amount prepaid, together with any additional amounts required
pursuant to Section 3.05. 
Subject to Section 2.16, each such prepayment shall be applied to
the Committed Loans of the Lenders in accordance with their respective
Applicable Percentages.

 

(b)           The
Company may, upon notice to the Swing Line Lender (with a copy to the
Administrative Agent), at any time or from time to time, voluntarily prepay
Swing Line Loans in whole or in part without premium or penalty; provided
that (i) such notice must be received by the Swing Line Lender and the
Administrative Agent not later than 1:00 p.m. on the date of the
prepayment, and (ii) any such prepayment shall be in a minimum principal amount
of $100,000.  Each such notice shall
specify the date and amount of such prepayment. 
If such notice is given by the Company, the Company shall make such
prepayment and the payment amount specified in such notice shall be due and
payable on the date specified therein.

 

(c)           If
for any reason the Total Outstandings at any time exceed the Aggregate
Commitments then in effect, the Company shall within two Business Days prepay
Loans and/or Cash Collateralize the L/C Obligations in an aggregate amount
equal to such excess; provided, however, that the Company shall
not be required to Cash Collateralize the L/C Obligations pursuant to this Section 2.05(c)
unless after the prepayment in full of the Loans the Total Outstandings exceed
the Aggregate Commitments then in effect. 
If for any reason the Outstanding Amount of all Swing Line Loans exceeds
the Swing Line Sublimit, the Company shall within two Business Days prepay the
Swing Line Loans in aggregate amount equal to such excess.  The Administrative Agent may, at any time and
from time to time after the initial deposit of such Cash Collateral, request
that additional Cash Collateral be provided in order to protect against the
results of exchange rate fluctuations.

 

2.06        Termination or Reduction of
Commitments.

 

The
Company may, upon notice to the Administrative Agent, terminate the Aggregate
Commitments, or from time to time permanently reduce the Aggregate Commitments;
provided that (i) any such notice shall be received by the
Administrative Agent not later than 11:00 a.m. three Business Days prior
to the date of termination or reduction, (ii) any such partial reduction shall
be in an aggregate amount of $5,000,000 or any whole multiple of $500,000 in
excess thereof, (iii) the Company shall not terminate or reduce the Aggregate
Commitments if, after giving effect thereto and to any concurrent prepayments
hereunder, the Total Outstandings would exceed the Aggregate Commitments, and
(iv) if, after giving effect to any reduction of the Aggregate Commitments, the
Alternative Currency Sublimit, the Letter of Credit Sublimit or the Swing Line
Sublimit exceeds the amount of the Aggregate Commitments, such Sublimit shall
be automatically reduced by the amount of such excess.  The Administrative Agent will promptly notify
the Lenders of any such notice of termination or reduction of the Aggregate
Commitments.  The amount of any such
Aggregate Commitment reduction shall not be applied to the Alternative Currency
Sublimit, the Letter of Credit Sublimit or the Swing Line Sublimit unless
otherwise specified by the Company.  Any
reduction of the Aggregate Commitments shall be applied to the Commitment of
each Lender according to its Applicable Percentage.  All fees accrued until the effective date of
any termination of the Aggregate Commitments shall be paid on the effective
date of such termination.

 

2.07        Repayment of Loans.

 

(a)           Each
Borrower shall repay to the Lenders on the Maturity Date the aggregate
principal amount of Committed Loans made to such Borrower outstanding on such
date.

 

43

 

(b)           The
Company shall repay each Swing Line Loan on the earlier to occur of (i) the
date within one (1) Business Day of demand therefor by the Swing Line
Lender and (ii) the Maturity Date.

 

2.08        Interest.

 

(a)           Subject
to the provisions of subsection (b) below, (i) each Eurocurrency
Rate Loan shall bear interest on the outstanding principal amount thereof for
each Interest Period at a rate per annum equal to the Eurocurrency Rate for
such Interest Period plus the Applicable Rate plus (in the case
of a Eurocurrency Rate Loan of any Lender which is lent from a Lending Office
in the United Kingdom or a Participating Member State) the Mandatory Cost; (ii) each
Base Rate Committed Loan shall bear interest on the outstanding principal
amount thereof from the applicable borrowing date at a rate per annum equal to
the Base Rate plus the Applicable Rate; and (iii) each Swing Line
Loan shall bear interest on the outstanding principal amount thereof from the
applicable borrowing date at a rate per annum equal to the Base Rate plus
the Applicable Rate.

 

(b)           (i)            If
any amount payable by any Borrower under any Loan Document is not paid when due
(without regard to any applicable grace periods), whether at stated maturity,
by acceleration or otherwise, such amount shall thereafter bear interest at a
fluctuating interest rate per annum at all times equal to the Default Rate to
the fullest extent permitted by applicable Laws.

 

(ii)           Accrued and unpaid interest on past due amounts (including
interest on past due interest) shall be due and payable upon demand.

 

(c)           Interest
on each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein.  Interest hereunder shall be due and payable
in accordance with the terms hereof before and after judgment, and before and
after the commencement of any proceeding under any Debtor Relief Law.

 

2.09        Fees.

 

In
addition to certain fees described in subsections (h) and (i) of
Section 2.03:

 

(a)           Commitment
Fee.  The Company shall pay to the
Administrative Agent for the account of each Lender in accordance with its
Applicable Percentage, a commitment fee (the “Commitment Fee”) in
Dollars equal to the product of (i) Applicable Rate times (ii) the
actual daily amount by which the Aggregate Commitments exceed the sum of (y) the
Outstanding Amount of the Committed Loans and (z) the Outstanding Amount
of L/C Obligations, subject to adjustment as provided in Section 2.16.  The Commitment Fee shall accrue at all times
during the Availability Period, including at any time during which one or more
of the conditions in Article V is not met, and shall be due and
payable quarterly in arrears on the last Business Day of each March, June, September and
December, commencing with the first such date to occur after the Closing Date,
and on the Maturity Date; provided, that (A) no Commitment
Fee shall accrue on the Commitment of a Defaulting Lender so long as such
Lender shall be a Defaulting Lender and (B) any Commitment Fee accrued
with respect to the Commitment of a Defaulting Lender during the period prior
to the time such Lender became a Defaulting Lender and unpaid at such time
shall not be payable by the Company so long as such Lender shall be a
Defaulting Lender.  The Commitment Fee
shall be calculated quarterly in arrears, and if there is any change in the
Applicable Rate during any quarter, the actual daily amount shall be computed
and multiplied by the Applicable Rate separately for each period during such
quarter that such Applicable Rate was in effect.  For purposes of clarification, Swing Line
Loans shall not be considered outstanding for purposes of determining the
unused portion of the Aggregate Commitments.

 

44

 

(b)           Other
Fees.  The Company shall pay to the
Joint Lead Arrangers and the Administrative Agent for their own respective
accounts, in Dollars, fees in the amounts and at the times specified in the Fee
Letter.  Such fees shall be fully earned
when paid and shall not be refundable for any reason whatsoever.

 

2.10        Computation of Interest and Fees.

 

(a)           All computations of interest for Base
Rate Loans (including Base Rate Loans determined by reference to the
Eurocurrency Rate) shall be made on the basis of a year of 365 or 366 days, as
the case may be, and actual days elapsed. 
All other computations of fees and interest shall be made on the basis
of a 360-day year and actual days elapsed (which results in more fees or
interest, as applicable, being paid than if computed on the basis of a 365-day
year), or, in the case of interest in respect of Committed Loans denominated in
Alternative Currencies as to which market practice differs from the foregoing,
in accordance with such market practice. 
Interest shall accrue on each Loan for the day on which the Loan is
made, and shall not accrue on a Loan, or any portion thereof, for the day on
which the Loan or such portion is paid, provided that any Loan that is
repaid on the same day on which it is made shall, subject to Section 2.12(a),
bear interest for one day.  Each
determination by the Administrative Agent of an interest rate or fee hereunder
shall be conclusive and binding for all purposes, absent manifest error.

 

(b)           If,
as a result of any restatement of or other adjustment to the financial
statements of the Company (other than any restatement or other adjustment of
the financial statements of the Company solely due to any change in GAAP which
occurred after the completion of the applicable period for which such financial
statements were prepared but for which the Company was nonetheless required to
restate the financial statements for such period in accordance with such
changes in GAAP) or for any other reason, the Company or the Lenders determine
that (i) the Consolidated Leverage Ratio as calculated by the Company as
of any applicable date was inaccurate and (ii) a proper calculation of the
Consolidated Leverage Ratio would have resulted in higher pricing for such
period, each Borrower shall immediately and retroactively be obligated to pay
to the Administrative Agent for the account of the applicable Lenders or the
L/C Issuer, as the case may be, promptly on demand by the Administrative Agent
(or, after the occurrence of an actual or deemed entry of an order for relief
with respect to such Borrower under the Bankruptcy Code of the United States,
automatically and without further action by the Administrative Agent, any
Lender or the L/C Issuer), an amount equal to the excess of the amount of
interest and fees that should have been paid for such period over the amount of
interest and fees actually paid for such period.  This paragraph shall not limit the rights of
the Administrative Agent, any Lender or the L/C Issuer, as the case may be,
under Section 2.03(c)(iii), 2.03(h) or 2.08(b) or
under Article IX.  The
Borrowers’ obligations under this paragraph shall survive the termination of
the Commitments of all of the Lenders and the repayment of all other
Obligations hereunder.

 

2.11        Evidence of Debt.

 

(a)           The
Credit Extensions made by each Lender shall be evidenced by one or more
accounts or records maintained by such Lender and by the Administrative Agent
in the ordinary course of business.  The
accounts or records maintained by the Administrative Agent and each Lender
shall be conclusive absent manifest error of the amount of the Credit
Extensions made by the Lenders to the Borrowers and the interest and payments
thereon.  Any failure to so record or any
error in doing so shall not, however, limit or otherwise affect the obligation
of the Borrowers hereunder to pay any amount owing with respect to the
Obligations.  In the event of any
conflict between the accounts and records maintained by any Lender and the
accounts and records of the Administrative Agent in respect of such matters, the
accounts and records of the Administrative Agent shall control in the absence
of manifest error.  Upon the request of
any Lender to a Borrower made through the Administrative Agent, such Borrower
shall execute and 

 

45

 

deliver
to such Lender (through the Administrative Agent) a Note, which shall evidence
such Lender’s Loans to such Borrower in addition to such accounts or
records.  Each such Note shall (i) in
the case of Committed Loans, be in the form of Exhibit C (a “Revolving
Note”) and (ii) in the case of Swing Line Loans, be in the form of Exhibit D
(a “Swing Line Note”).  Each
Lender may attach schedules to a Note and endorse thereon the date, Type (if
applicable), amount, currency and maturity of its Loans and payments with
respect thereto.

 

(b)           In
addition to the accounts and records referred to in subsection (a), each
Lender and the Administrative Agent shall maintain in accordance with its usual
practice accounts or records evidencing the purchases and sales by such Lender
of participations in Letters of Credit and Swing Line Loans.  In the event of any conflict between the
accounts and records maintained by the Administrative Agent and the accounts
and records of any Lender in respect of such matters, the accounts and records
of the Administrative Agent shall control in the absence of manifest error.

 

2.12        Payments Generally; Administrative
Agent’s Clawback.

 

(a)           General.  All payments to be made by the Borrowers
shall be made without deduction for any counterclaim or setoff.  Except as otherwise expressly provided herein
and except with respect to principal of and interest on Loans denominated in an
Alternative Currency, all payments by the Borrowers hereunder shall be made to
the Administrative Agent, for the account of the respective Lenders to which
such payment is owed, at the applicable Administrative Agent’s Office in
Dollars and in Same Day Funds not later than 2:00 p.m. on the date
specified herein.  Except as otherwise
expressly provided herein, all payments by the Borrowers hereunder with respect
to principal and interest on Loans denominated in an Alternative Currency shall
be made to the Administrative Agent, for the account of the respective Lenders
to which such payment is owed, at the applicable Administrative Agent’s Office
in such Alternative Currency and in Same Day Funds not later than the
Applicable Time specified by the Administrative Agent on the dates specified
herein.  Without limiting the generality
of the foregoing, the Administrative Agent may, to the extent permitted by
applicable Law, require that any payments due under this Agreement be made in
the United States.  If, for any reason,
any Borrower is prohibited by any Law from making any required payment
hereunder in an Alternative Currency, such Borrower shall make such payment in
Dollars in the Dollar Equivalent of the Alternative Currency payment
amount.  The Administrative Agent will
promptly distribute to each Lender its Applicable Percentage (or other
applicable share as provided herein) of such payment in like funds as received
by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative
Agent (i) after 2:00 p.m., in the case of payments in Dollars, or
(ii) after the Applicable Time specified by the Administrative Agent in
the case of payments in an Alternative Currency, shall in each case be deemed
received on the next succeeding Business Day and any applicable interest or fee
shall continue to accrue.  If any payment
to be made by any Borrower shall come due on a day other than a Business Day,
payment shall be made on the next following Business Day, and such extension of
time shall be reflected in computing interest or fees, as the case may be.

 

(b)           (i)  Funding by Lenders; Presumption by
Administrative Agent.  Unless the
Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Committed Borrowing of Eurocurrency Rate Loans (or, in the
case of any Committed Borrowing of Base Rate Loans, prior to 12:00 noon on the
date of such Committed Borrowing) that such Lender will not make available to
the Administrative Agent such Lender’s share of such Committed Borrowing, the
Administrative Agent may assume that such Lender has made such share available
on such date in accordance with Section 2.02 (or, in the case of a
Committed Borrowing of Base Rate Loans, that such Lender has made such share
available in accordance with and at the time required by Section 2.02)
and may, in reliance upon such assumption, make available to the applicable
Borrower a corresponding amount.  In such
event, if a Lender has not in fact made its share of the applicable Committed
Borrowing 

 

46

 

available
to the Administrative Agent, then the applicable Lender agrees to pay to the
Administrative Agent forthwith on demand such corresponding amount in Same Day
Funds with interest thereon, for each day from and including the date such
amount is made available to such Borrower to but excluding the date of payment
to the Administrative Agent, at the Overnight Rate.  If such Lender’s share of the applicable
Committed Borrowing is not made available to the Administrative Agent by such
Lender within three Business Days of the date such amount is made available to
the applicable Borrower, the Administrative Agent shall also be entitled to
recover such amount with interest thereon at the rate per annum applicable to
Base Rate Loans hereunder, on demand, from the applicable Borrower.  If such Lender pays its share of the
applicable Committed Borrowing to the Administrative Agent, then the amount so
paid shall constitute such Lender’s Committed Loan included in such Committed
Borrowing.  Any payment by such Borrower
shall be without prejudice to any claim such Borrower may have against a Lender
that shall have failed to make such payment to the Administrative Agent.

 

(ii)           Payments by Borrowers; Presumptions by Administrative
Agent.  Unless the Administrative
Agent shall have received notice from a Borrower prior to the date on which any
payment is due to the Administrative Agent for the account of the Lenders or
the L/C Issuer hereunder that such Borrower will not make such payment, the
Administrative Agent may assume that such Borrower has made such payment on
such date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders or the L/C Issuer, as the case may be, the amount
due.  In such event, if such Borrower has
not in fact made such payment, then each of the Lenders or the L/C Issuer, as
the case may be, severally agrees to repay to the Administrative Agent
forthwith on demand the amount so distributed to such Lender or the L/C Issuer,
in Same Day Funds with interest thereon, for each day from and including the
date such amount is distributed to it to but excluding the date of payment to
the Administrative Agent, at the Overnight Rate.

 

A
notice of the Administrative Agent to any Lender or Borrower with respect to
any amount owing under this subsection (b) shall be conclusive,
absent manifest error.

 

(c)           Failure
to Satisfy Conditions Precedent.  If
any Lender makes available to the Administrative Agent funds for any Loan to be
made by such Lender to any Borrower as provided in the foregoing provisions of
this Article II, and such funds are not made available to such
Borrower by the Administrative Agent because the conditions to the applicable
Credit Extension set forth in Article V are not satisfied or waived
in accordance with the terms hereof, the Administrative Agent shall promptly
return such funds (in like funds as received from such Lender) to such Lender,
without interest.

 

(d)           Obligations
of Lenders Several.  The obligations
of the Lenders hereunder to make Committed Loans, to fund participations in
Letters of Credit and Swing Line Loans and to make payments pursuant to Section 11.04(c) are
several and not joint.  The failure of
any Lender to make any Committed Loan, to fund any such participation or to
make any payment under Section 11.04(c) on any date required hereunder
shall not relieve any other Lender of its corresponding obligation to do so on
such date, and no Lender shall be responsible for the failure of any other
Lender to so make its Committed Loan, to purchase its participation or to make
its payment under Section 11.04(c).

 

(e)           Funding
Source.  Nothing herein shall be
deemed to obligate any Lender to obtain the funds for any Loan in any
particular place or manner or to constitute a representation by any Lender that
it has obtained or will obtain the funds for any Loan in any particular place
or manner.

 

47

 

2.13        Sharing of Payments by Lenders.

 

If
any Lender shall, by exercising any right of setoff or counterclaim or
otherwise, obtain payment in respect of any principal of or interest on any of
the Committed Loans made by it, or the participations in L/C Obligations or in
Swing Line Loans held by it resulting in such Lender’s receiving payment of a
proportion of the aggregate amount of such Committed Loans or participations
and accrued interest thereon greater than its pro  rata share
thereof as provided herein, then the Lender receiving such greater proportion
shall (a) notify the Administrative Agent of such fact, and (b) purchase
(for cash at face value) participations in the Committed Loans and
subparticipations in L/C Obligations and Swing Line Loans of the other Lenders,
or make such other adjustments as shall be equitable, so that the benefit of
all such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective
Committed Loans and other amounts owing them, provided that:

 

(i)            if any such participations or subparticipations are
purchased and all or any portion of the payment giving rise thereto is
recovered, such participations or subparticipations shall be rescinded and the
purchase price restored to the extent of such recovery, without interest; and

 

(ii)           the provisions of this Section shall not be construed
to apply to (x) any payment made by or on behalf of a Borrower pursuant to
and in accordance with the express terms of this Agreement (including the
application of funds arising from the existence of a Defaulting Lender), (y) the
application of Cash Collateral provided for in Section 2.15 or (z) any
payment obtained by a Lender as consideration for the assignment of or sale of
a participation in any of its Committed Loans or subparticipations in L/C
Obligations or Swing Line Loans to any assignee or participant, other than an
assignment, participation or subparticipation to the Company or any Subsidiary
thereof (as to which the provisions of this Section shall apply).

 

Each
Loan Party consents to the foregoing and agrees, to the extent it may
effectively do so under applicable law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against such
Loan Party rights of setoff and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of such Loan Party in the
amount of such participation.

 

2.14        Designated Borrowers.

 

(a)           The
Company may at any time, upon not less than ten Business Days’ notice from the
Company to the Administrative Agent (or such shorter period as may be agreed by
the Administrative Agent in its sole discretion), designate any additional
Wholly Owned  Subsidiary of the Company (an “Applicant
Borrower”) as a Designated Borrower to receive Loans hereunder by
delivering to the Administrative Agent (which shall promptly deliver counterparts
thereof to each Lender) a duly executed notice and agreement in substantially
the form of Exhibit H (a “Designated Borrower Request and
Assumption Agreement”).  The parties
hereto acknowledge and agree that prior to any Applicant Borrower becoming
entitled to utilize the credit facilities provided for herein, the
Administrative Agent and the Lenders shall have received such supporting
resolutions, incumbency certificates, opinions of counsel and other documents
or information, in form, content and scope reasonably satisfactory to the
Administrative Agent, as may be required by the Administrative Agent in its
reasonable discretion, and Notes signed by such new Borrowers to the extent any
Lenders so request.  If the
Administrative Agent and the Required Lenders agree that an Applicant Borrower
shall be entitled to receive Loans hereunder, then promptly following receipt
of all such requested resolutions, incumbency certificates, opinions of counsel
and other documents or information, the Administrative Agent shall send a
notice in substantially the form of Exhibit I (a “Designated
Borrower Notice”) to the Company and the Lenders specifying the 

 

48

 

effective
date upon which the Applicant Borrower shall constitute a Designated Borrower
for purposes hereof, whereupon each of the Lenders agrees to permit such
Designated Borrower to receive Loans hereunder, on the terms and conditions set
forth herein, and each of the parties agrees that such Designated Borrower
otherwise shall be a Borrower for all purposes of this Agreement; provided
that no Committed Loan Notice or Letter of Credit Application may be submitted
by or on behalf of such Designated Borrower until the date five Business Days
after such effective date.

 

(b)           The
Obligations of the Company and each Designated Borrower that is a Domestic
Subsidiary shall be joint and several in nature regardless of which such Person
actually receives Credit Extensions hereunder or the amount of such Credit
Extensions received or the manner in which the Administrative Agent or any
Lender accounts for such Credit Extensions on its books and records.  Each of the obligations of the Company and
each Designated Borrower that is a Domestic Subsidiary with respect to Credit
Extensions made to it, and each such Borrower’s obligations arising as a result
of the joint and several liability of such Borrower hereunder, with respect to
Credit Extensions made to and other Obligations owing by the Company and the
other Borrowers that are Domestic Subsidiaries hereunder, shall be separate and
distinct obligations, but all such obligations shall be primary obligations of
each such Borrower.

 

(c)          The
Obligations of the Designated Borrowers that are Foreign Subsidiaries shall be
joint and several in nature (unless such joint and several liability (i) shall
result in adverse tax consequences to any Borrower or (ii) is not
permitted by any Law applicable to such Designated Borrower, in which either
such case, the liability of such Designated Borrower shall be several in
nature) regardless of which such Person actually receives Credit Extensions
hereunder or the amount of such Credit Extensions received or the manner in
which the Administrative Agent or any Lender accounts for such Credit Extensions
on its books and records.  Each of the
obligations of each Designated Borrower that is a Foreign Subsidiary with
respect to Credit Extensions made to it, and each such Borrower’s obligations
arising as a result of the joint and several liability (if any) of such
Borrower hereunder, with respect to Credit Extensions made to and other
Obligations owing by the other Borrowers that are Foreign Subsidiaries
hereunder, shall be separate and distinct obligations, but all such obligations
shall be primary obligations of each such Borrower.

 

(d)           Each
Subsidiary of the Company that is or  becomes a “Designated
Borrower” pursuant to this Section 2.14 hereby irrevocably appoints
the Company as its agent for all purposes relevant to this Agreement and each
of the other Loan Documents, including (i) the giving and receipt of
notices, (ii) the execution and delivery of all documents, instruments and
certificates contemplated herein and all modifications hereto, and
(iii) the receipt of the proceeds of any Loans made by the Lenders, to any
such Designated Borrower hereunder.  Any
acknowledgment, consent, direction, certification or other action which might
otherwise be valid or effective only if given or taken by all Borrowers, or by
each Borrower acting singly, shall be valid and effective if given or taken
only by the Company, whether or not any such other Borrower joins therein.  Any notice, demand, consent, acknowledgement,
direction, certification or other communication delivered to the Company in
accordance with the terms of this Agreement shall be deemed to have been
delivered to each Designated Borrower.

 

(e)           The
Company may from time to time, upon not less than ten Business Days’ notice
from the Company to the Administrative Agent (or such shorter period as may be
agreed by the Administrative Agent in its sole discretion), terminate a
Designated Borrower’s status as such, provided that there are no
outstanding Loans payable by such Designated Borrower, or other amounts payable
by such Designated Borrower on account of any Loans made to it, as of the
effective date of such termination.  The
Administrative Agent will promptly notify the Lenders of any such termination
of a Designated Borrower’s status.

 

49

 

2.15        Cash Collateral.

 

(a)           Certain Credit Support Events.  Upon the request of the Administrative Agent
or the L/C Issuer (i) if the L/C Issuer has honored any full or partial
drawing request under any Letter of Credit and such drawing has resulted in an
L/C Borrowing or (ii) if, as of the Letter of Credit Expiration Date, any
L/C Obligation for any reason remains outstanding, the Borrowers shall, in each
case, immediately Cash Collateralize the then Outstanding Amount of all L/C
Obligations.  At any time that there shall
exist a Defaulting Lender, immediately upon the request of the Administrative
Agent, the L/C Issuer or the Swing Line Lender, the Borrowers shall deliver to
the Administrative Agent Cash Collateral in an amount sufficient to cover all
Fronting Exposure (after giving effect to Section 2.16(a)(iv) and
any Cash Collateral provided by the Defaulting Lender).

 

(b)           Grant of Security Interest.  All Cash Collateral (other than credit
support not constituting funds subject to deposit) shall be maintained in blocked,
non-interest bearing deposit accounts at the Administrative Agent.  Each Borrower, and to the extent provided by
any Lender, such Lender, hereby grants to (and subjects to the control of) the
Administrative Agent, for the benefit of the Administrative Agent, the L/C
Issuer and the Lenders (including the Swing Line Lender) and agrees to
maintain, a first priority security interest in all such cash, deposit accounts
and all balances therein, and all other property so provided as collateral
pursuant hereto, and in all balances therein, and all other property so
provided as collateral pursuant hereto, and in all proceeds of the foregoing,
all as security for the obligations to which such Cash Collateral may be
applied pursuant to Section 2.15(c).  If at any time the Administrative Agent
determines that Cash Collateral is subject to any right or claim of any Person
other than the Administrative Agent as herein provided, or that the total
amount of such Cash Collateral is less than the applicable Fronting Exposure
and other obligations secured thereby, the Borrowers or the relevant Defaulting
Lender will, promptly upon demand by the Administrative Agent, pay or provide
to the Administrative Agent additional Cash Collateral in an amount sufficient
to eliminate such deficiency.

 

(c)           Application.  Notwithstanding anything to the contrary
contained in this Agreement, Cash Collateral provided under any of this Section 2.15
or Sections 2.03, 2.04, 2.05, 2.16 or 9.02
in respect of Letters of Credit or Swing Line Loans shall be held and applied
in satisfaction of the specific L/C Obligations, Swing Line Loans, obligations
to fund participations therein (including, as to Cash Collateral provided by a
Defaulting Lender, any interest accrued on such obligation) and other obligations
for which the Cash Collateral was so provided, prior to any other application
of such property as may be provided herein.

 

(d)           Release.  Cash Collateral (or the appropriate portion
thereof) provided to reduce Fronting Exposure or other obligations shall be
released promptly following (i) the elimination of the applicable Fronting
Exposure or other obligations giving rise thereto (including by the termination
of Defaulting Lender status of the applicable Lender) or (ii) the
Administrative Agent’s good faith determination that there exists excess Cash
Collateral; provided, however, (x) that Cash Collateral
furnished by or on behalf of a Loan Party shall not be released during the
continuance of a Default or Event of Default (and following application as
provided in this Section 2.15 may be otherwise applied in
accordance with Section 9.03) and (y) the Person providing
Cash Collateral and the L/C Issuer or Swing Line Lender, as applicable, may
agree that Cash Collateral shall not be released but instead held to support
future anticipated Fronting Exposure or other obligations.

 

2.16        Defaulting Lenders.

 

(a)           Adjustments.  Notwithstanding anything to the contrary
contained in this Agreement, if any Lender becomes a Defaulting Lender, then,
until such time as that Lender is no longer a Defaulting Lender, to the extent
permitted by applicable Law:

 

50

 

(i)            Waivers and
Amendment.  The Defaulting Lender’s
right to approve or disapprove any amendment, waiver or consent with respect to
this Agreement shall be restricted as set forth in Section 11.01.

 

(ii)           Reallocation of
Payments.  Any payment of principal,
interest, fees or other amount received by the Administrative Agent for the
account of that Defaulting Lender (whether voluntary or mandatory, at maturity,
pursuant to Article IX or otherwise, and including any amounts made
available to the Administrative Agent by that Defaulting Lender pursuant to Section 11.08),
shall be applied at such time or times as may be determined by the
Administrative Agent as follows: first, to the payment of any amounts
owing by that Defaulting Lender to the Administrative Agent hereunder; second,
to the payment on a pro  rata basis of any amounts owing by that
Defaulting Lender to the L/C Issuer or Swing Line Lender hereunder; third,
if so determined by the Administrative Agent or requested by the L/C Issuer or
Swing Line Lender, to be held as Cash Collateral for future funding obligations
of that Defaulting Lender of any participation in any Swing Line Loan or Letter
of Credit; fourth, as the Company may request (so long as no Default or
Event of Default exists), to the funding of any Loan in respect of which that
Defaulting Lender has failed to fund its portion thereof as required by this
Agreement, as determined by the Administrative Agent; fifth, if so
determined by the Administrative Agent and the Borrowers, to be held in a
non-interest bearing deposit account and released in order to satisfy
obligations of that Defaulting Lender to fund Loans under this Agreement; sixth,
to the payment of any amounts owing to the Lenders, the L/C Issuer or Swing
Line Lender as a result of any judgment of a court of competent jurisdiction
obtained by any Lender, the L/C Issuer or Swing Line Lender against that
Defaulting Lender as a result of that Defaulting Lender’s breach of its
obligations under this Agreement; seventh, to the payment of any amounts
owing to the Borrowers as a result of any judgment of a court of competent
jurisdiction obtained by the Borrowers against that Defaulting Lender as a
result of that Defaulting Lender’s breach of its obligations under this
Agreement; and eighth, to that Defaulting Lender or as otherwise
directed by a court of competent jurisdiction; provided, that, if
(x) such payment is a payment of the principal amount of any Loans or L/C
Borrowings in respect of which that Defaulting Lender has not fully funded its
appropriate share and (y) such Loans or L/C Borrowings were made at a time
when the conditions set forth in Section 5.02 were satisfied or
waived, such payment shall be applied solely to the pay the Loans of, and L/C
Borrowings owed to, all non-Defaulting Lenders on a pro  rata
basis prior to being applied to the payment of any Loans of, or L/C Borrowings
owed to, that Defaulting Lender.  Any
payments, prepayments or other amounts paid or payable to a Defaulting Lender
that are applied (or held) to pay amounts owed by a Defaulting Lender or to
post Cash Collateral pursuant to this Section 2.16(a)(ii) shall
be deemed paid to and redirected by that Defaulting Lender, and each Lender
irrevocably consents hereto.

 

(iii)          Certain Fees.  The Defaulting Lender (x) shall not be
entitled to receive any Commitment Fee pursuant to Section 2.09(a) for
any period during which such Lender is a Defaulting Lender (and the Company
shall not be required to pay any such fee that otherwise would have been
required to have been paid to such Defaulting Lender) and (y) shall be
limited in its right to receive Letter of Credit Fees as provided in Section 2.03(h).

 

(iv)          Reallocation of
Applicable Percentages to Reduce Fronting Exposure.  During any period in which there is a
Defaulting Lender, for purposes of computing the amount of the obligation of
each non-Defaulting Lender to acquire, refinance or fund participations in
Letters of Credit or Swing Line Loans pursuant to Sections 2.03 and 2.04,
the “Applicable Percentage” of each non-Defaulting Lender shall be computed
without giving effect to the Commitment of that Defaulting Lender; provided,
that, (x) each such reallocation shall be given effect only if, at
the

 

51

 

date
the applicable Lender becomes a Defaulting Lender, no Default or Event of
Default exists; and (y) the aggregate obligation of each non-Defaulting
Lender to acquire, refinance or fund participations in Letters of Credit and
Swing Line Loans shall not exceed the positive difference, if any, of (1) the
Commitment of that non-Defaulting Lender minus (2) the aggregate
Outstanding Amount of the Revolving Loans of that Lender.

 

(b)           Defaulting Lender Cure.  If the Company, the Administrative Agent,
Swing Line Lender and the L/C Issuer agree in writing in their sole discretion
that a Defaulting Lender should no longer be deemed to be a Defaulting Lender,
the Administrative Agent will so notify the parties hereto, whereupon as of the
effective date specified in such notice and subject to any conditions set forth
therein (which may include arrangements with respect to any Cash Collateral),
that Lender will, to the extent applicable, purchase that portion of
outstanding Loans of the other Lenders or take such other actions as the
Administrative Agent may determine to be necessary to cause the Revolving Loans
and funded and unfunded participations in Letters of Credit and Swing Line
Loans to be held on a pro  rata basis by the Lenders in accordance
with their Applicable Percentages (without giving effect to Section 2.16(a)(iv)),
whereupon that Lender will cease to be a Defaulting Lender; provided, that,
no adjustments will be made retroactively with respect to fees accrued or
payments made by or on behalf of the Borrowers while that Lender was a
Defaulting Lender; provided, further, that, except to the
extent otherwise expressly agreed by the affected parties, no change hereunder
from Defaulting Lender to Lender will constitute a waiver or release of any
claim of any party hereunder arising from that Lender having been a Defaulting
Lender.

 

ARTICLE III

TAXES, YIELD PROTECTION AND ILLEGALITY

 

3.01        Taxes.

 

(a)           Payments
Free of Taxes.  Any and all payments
by or on account of any obligation of the respective Borrowers hereunder or
under any other Loan Document shall be made free and clear of and without
reduction or withholding for any Indemnified Taxes or Other Taxes, provided
that if the applicable Borrower shall be required by applicable law to deduct
any Indemnified Taxes or any Other Taxes from such payments, then (i) the
sum payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section 3.01) the Administrative Agent, Lender or L/C Issuer,
as the case may be, receives an amount equal to the sum it would have received
had no such deductions been made, (ii) such Borrower shall make such
deductions and (iii) such Borrower shall timely pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable
law.

 

(b)           Payment
of Other Taxes by the Borrowers. 
Without limiting the provisions of subsection (a) above, each
Borrower shall timely pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

 

(c)           Indemnification
by the Borrowers.  Each Borrower
shall indemnify the Administrative Agent, each Lender and the L/C Issuer,
within 10 days after demand therefor, for the full amount of any Indemnified
Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section 3.01)
paid by the Administrative Agent, such Lender or the L/C Issuer, as the case
may be, 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 a Borrower by a Lender or the
L/C Issuer (with a copy to the 

 

52

 

Administrative
Agent), or by the Administrative Agent on its own behalf or on behalf of a
Lender or the L/C Issuer, shall be conclusive absent manifest error.

 

(d)           Evidence
of Payments.  As soon as practicable
after any payment of Indemnified Taxes or Other Taxes by any Borrower to a
Governmental Authority, such Borrower shall deliver to the Administrative Agent
the original or a certified copy of a receipt issued by such Governmental
Authority evidencing such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

 

(e)           Status
of Lenders.  Any Foreign Lender that
is entitled to an exemption from or reduction of withholding tax under the law
of the jurisdiction in which a Borrower is resident for tax purposes, or any
treaty to which such jurisdiction is a party, with respect to payments
hereunder or under any other Loan Document shall deliver to the Company (with a
copy to the Administrative Agent), at the time or times prescribed by
applicable law or reasonably requested by the Company or the Administrative
Agent, such properly completed and executed documentation prescribed by
applicable law as will permit such payments to be made without withholding or
at a reduced rate of withholding.  In
addition, any Lender, if requested by the Company or the Administrative Agent,
shall deliver such other documentation prescribed by applicable law or
reasonably requested by the Company or the Administrative Agent as will enable
the Company or the Administrative Agent to determine whether or not such
Lender, the Administrative Agent or the L/C Issuer is subject to backup
withholding or information reporting requirements.  Each Lender, the Administrative Agent or the
L/C Issuer shall promptly notify the Company at any time it determines that it
is no longer in a position to provide any previously delivered certificate or
form.

 

Without
limiting the generality of the foregoing, in the event that a Borrower is
resident for tax purposes in the United States, any Foreign Lender shall
deliver to Company and the Administrative Agent (in such number of copies as
shall be requested by the recipient) on or prior to the date on which such
Foreign Lender becomes a Lender under this Agreement (and from time to time
thereafter upon the request of the Company or the Administrative Agent, but
only if such Foreign Lender is legally entitled to do so), whichever of the
following is applicable:

 

(i)            properly completed and duly executed copies of Internal
Revenue Service Form W-8BEN (or any subsequent versions thereof or
successors thereto) claiming eligibility for benefits of an income tax treaty
to which the United States is a party,

 

(ii)           properly completed and duly executed copies of Internal
Revenue Service Form W-8ECI (or any subsequent versions thereof or
successors thereto) claiming an exemption for effectively connected income,

 

(iii)          in the case of a Foreign Lender claiming the benefits of
the exemption for portfolio interest under section 881(c) of the Internal
Revenue Code, (x) a certificate to the effect that such Foreign Lender is
not (A) a “bank” within the meaning of section 881(c)(3)(A) of the
Internal Revenue Code, (B) a “10 percent shareholder” of the applicable
Borrower within the meaning of section 881(c)(3)(B) of the Internal
Revenue Code, or (C) a “controlled foreign corporation” described in
section 881(c)(3)(C) of the Internal Revenue Code and (y) duly
completed copies of Internal Revenue Service Form W-8BEN (or any
subsequent versions thereof or successors thereto), or

 

(iv)          any other form prescribed by applicable law as a basis for
claiming exemption from or a reduction in United States Federal withholding tax
properly completed and duly

 

53

 

executed
together with such supplementary documentation as may be prescribed by
applicable law to permit the Company to determine the withholding or deduction
required to be made.

 

Without
limiting the obligations of the Lenders set forth above regarding delivery of
certain forms and documents to establish each Lender’s status for U.S.  withholding tax purposes, each Lender agrees
promptly to deliver to the Administrative Agent or the Company, as the
Administrative Agent or the Company shall reasonably request, on or prior to
the Closing Date, and in a timely fashion thereafter, such other documents and
forms required by any relevant taxing authorities under the Laws of any other
jurisdiction, duly executed and completed by such Lender, as are required under
such Laws to confirm such Lender’s entitlement to any available exemption from,
or reduction of, applicable withholding taxes in respect of all payments to be
made to such Lender outside of the U.S. by the Borrowers pursuant to this
Agreement or otherwise to establish such Lender’s status for withholding tax
purposes in such other jurisdiction. 
Each Lender shall promptly (i) notify the Administrative Agent of any
change in circumstances which would modify or render invalid any such  claimed exemption or reduction, and (ii) take
such steps as shall not be materially disadvantageous to it, in the reasonable
judgment of such Lender, and as may be reasonably necessary (including the
re-designation of its Lending Office) to avoid any requirement of applicable Laws
of any such jurisdiction that any Borrower make any deduction or withholding
for taxes from amounts payable to such Lender. 
Additionally, each of the Borrowers shall promptly deliver to the
Administrative Agent or any Lender, as the Administrative Agent or such Lender
shall reasonably request, on or prior to the Closing Date, and in a timely
fashion thereafter, such documents and forms required by any relevant taxing
authorities under the Laws of any jurisdiction, duly executed and completed by
such Borrower, as are required to be furnished by such Lender or the
Administrative Agent under such Laws in connection with any payment by the
Administrative Agent or any Lender of Taxes or Other Taxes, or otherwise in
connection with the Loan Documents, with respect to such jurisdiction.

 

(f)            Treatment
of Certain Refunds.  If the
Administrative Agent, any Lender or the L/C Issuer determines, in its sole
discretion exercised in good faith, that it has received a refund of any Taxes
or Other Taxes as to which it has been indemnified by any Borrower or with
respect to which any Borrower has paid additional amounts pursuant to this
Section, it shall pay to such Borrower an amount equal to such refund (but only
to the extent of indemnity payments made, or additional amounts paid, by such
Borrower under this Section with respect to the Taxes or Other Taxes
giving rise to such refund), net of all out-of-pocket expenses of the
Administrative Agent, such Lender or the L/C Issuer, 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 each Borrower,
upon the request of the Administrative Agent, such Lender or the L/C Issuer,
agrees to repay the amount paid over to such Borrower (plus any penalties,
interest or other charges imposed by the relevant Governmental Authority) to
the Administrative Agent, such Lender or the L/C Issuer in the event the
Administrative Agent, such Lender or the L/C Issuer is required to repay such
refund to such Governmental Authority. 
This subsection shall not be construed to require the Administrative
Agent, any Lender or the L/C Issuer to make available its tax returns (or any
other information relating to its taxes that it deems confidential) to any
Borrower or any other Person.

 

3.02        Illegality.

 

If
any Lender determines that as a result of any Change in Law it becomes
unlawful, or any Governmental Authority asserts that it is unlawful, for any
Lender or its applicable Lending Office to make, maintain or fund Loans whose
interest is determined by reference to the Eurocurrency Rate (whether
denominated in Dollars or an Alternative Currency), or to determine or charge
interest rates based upon the Eurocurrency Rate, or any Governmental Authority
has imposed material restrictions on the authority of such Lender to purchase
or sell, or to take deposits of, Dollars or any Alternative Currency in the
applicable interbank market, then, on notice thereof by such Lender to the
Company 

 

54

 

through
the Administrative Agent, (i) any obligation of such Lender to make or continue
Eurocurrency Rate Loans in the affected currency or currencies or, in the case
of Eurocurrency Rate Loans in Dollars, to convert Base Rate Committed Loans to
Eurocurrency Rate Loans, shall be suspended and (ii) if such notice asserts the
illegality of such Lender making or maintaining Base Rate Loans the interest
rate on which is determined by reference to the Eurocurrency Rate component of
the Base Rate, the interest rate on which Base Rate Loans of such Lender shall,
if necessary to avoid such illegality, be determined by the Administrative
Agent without reference to the Eurocurrency Rate component of the Base Rate, in
each case until such Lender notifies the Administrative Agent and the Company
that the circumstances giving rise to such determination no longer exist.  Upon receipt of such notice, (x) the
Borrowers shall, upon demand from such Lender (with a copy to the
Administrative Agent), prepay or, if applicable and such Loans are denominated
in Dollars, convert all such Eurocurrency Rate Loans of such Lender to Base
Rate Loans (the interest rate on which Base Rate Loans of such Lender shall, if
necessary to avoid such illegality, be determined by the Administrative Agent
without reference to the Eurocurrency Rate component of the Base Rate), either
on the last day of the Interest Period therefor, if such Lender may lawfully
continue to maintain such Eurocurrency Rate Loans to such day, or immediately,
if such Lender may not lawfully continue to maintain such Eurocurrency Rate
Loans and (y) if such notice asserts the illegality of such Lender determining
or charging interest rates based upon the Eurocurrency Rate, the Administrative
Agent shall during the period of such suspension compute the Base Rate
applicable to such Lender without reference to the Eurocurrency Rate component
thereof until the Administrative Agent is advised in writing by such Lender
that it is no longer illegal for such Lender to determine or charge interest
rates based upon the Eurocurrency Rate. 
Upon any such prepayment or conversion, the Borrowers shall also pay
accrued interest on the amount so prepaid or converted.

 

3.03        Inability to Determine Rates.

 

If
the Required Lenders determine that for any reason in connection with any
request for a Eurocurrency Rate Loan or a conversion to or continuation thereof
that (a) adequate and reasonable means do not exist for determining the
Eurocurrency Rate for any requested Interest Period with respect to a proposed
Eurocurrency Rate Loan (whether denominated in Dollars or an Alternative
Currency) or in connection with an existing or proposed Base Rate Loan or
(b) the Eurocurrency Rate for any requested Interest Period with respect
to a proposed Eurocurrency Rate Loan does not adequately and fairly reflect the
cost to such Lenders of funding such Eurocurrency Rate Loan, the Administrative
Agent will promptly so notify the Company and each Lender.  Thereafter, (x) the obligation of the Lenders
to make or maintain Eurocurrency Rate Loans in the affected currency or
currencies shall be suspended, and (y) in the event of a determination
described in the preceding sentence with respect to the Eurocurrency Rate
component of the Base Rate, the utilization of the Eurocurrency Rate component
in determining the Base Rate shall be suspended, in each case until the
Administrative Agent (upon the instruction of the Required Lenders) revokes
such notice.  Upon receipt of such
notice, the Company may revoke any pending request for a Borrowing of,
conversion to or continuation of Eurocurrency Rate Loans in the affected
currency or currencies or, failing that, will be deemed to have converted such
request into a request for a Committed Borrowing of Base Rate Loans in the
amount specified therein.

 

3.04        Increased Costs.

 

(a)           Increased
Costs Generally.  If any Change in
Law shall:

 

(i)            impose, modify or deem applicable any reserve, special
deposit, compulsory loan, insurance charge or similar requirement against
assets of, deposits with or for the account of, or credit extended or
participated in by, any Lender (except (A) any reserve requirement contemplated
by Section 3.04(e) and (B) the requirements of the Bank of England
and the 

 

55

 

Financial
Services Authority or the European Central Bank reflected in the Mandatory
Cost, other than as set forth below) or the L/C Issuer;

 

(ii)           subject any Lender or the L/C Issuer to any tax of any
kind whatsoever with respect to this Agreement, any Letter of Credit, any
participation in a Letter of Credit or any Eurocurrency Rate Loan made by it,
or change the basis of taxation of payments to such Lender or the L/C Issuer in
respect thereof (except for Indemnified Taxes or Other Taxes covered by Section 3.01
and the imposition of, or any change in the rate of, any Excluded Tax payable
by such Lender or the L/C Issuer);

 

(iii)          result in the Mandatory Cost, as calculated hereunder, not
representing the cost to any Lender of complying with the requirements of the
Bank of England and/or the Financial Services Authority or the European Central
Bank in relation to its making, funding or maintaining Eurocurrency Rate Loans;
or

 

(iv)          impose on any Lender or the L/C Issuer any other condition,
cost or expense affecting this Agreement or Eurocurrency Rate 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, by an amount which such Lender deems to be material in its sole
discretion, of making or maintaining any Loan the interest on which is
determined by reference to the Eurocurrency Rate (or of maintaining its
obligation to make any such Loan), or to increase the cost to such Lender or
the L/C Issuer of participating in, issuing or maintaining any Letter of Credit
(or of maintaining its obligation to participate in or to issue any Letter of
Credit), or to reduce the amount of any sum received or receivable by such
Lender or the L/C Issuer hereunder (whether of principal, interest or any other
amount) then, upon request of such Lender or the L/C Issuer, the Company will
pay (or cause the applicable Designated Borrower to pay) to such Lender or the
L/C Issuer, as the case may be, such additional amount or amounts as will
compensate such Lender or the L/C Issuer, as the case may be, for such
additional costs incurred or reduction suffered.

 

(b)           Capital
Requirements.  If any Lender or the
L/C Issuer determines that any Change in Law affecting such Lender or the L/C
Issuer or any Lending Office of such Lender or such Lender’s or the L/C Issuer’s
holding company, if any, regarding capital requirements has or would have the
effect of reducing the rate of return on such Lender’s or the L/C Issuer’s
capital or on the capital of such Lender’s or the L/C Issuer’s holding company,
if any, as a consequence of this Agreement, the Commitments of such Lender or
the Loans made by, or participations in Letters of Credit held by, such Lender,
or the Letters of Credit issued by the L/C Issuer, to a level below that which
such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding
company could have achieved but for such Change in Law (taking into
consideration such Lender’s or the L/C Issuer’s policies and the policies of
such Lender’s or the L/C Issuer’s holding company with respect to capital
adequacy), by an amount deemed by such Lender to be material in its sole
discretion then from time to time the Company will pay (or cause the applicable
Designated Borrower to pay) to such Lender or the L/C Issuer, as the case may
be, such additional amount or amounts as will compensate such Lender or the L/C
Issuer or such Lender’s or the L/C Issuer’s holding company for any such
reduction suffered.

 

(c)           Certificates
for Reimbursement.  A certificate of
a Lender or the L/C Issuer setting forth the amount or amounts necessary to
compensate such Lender or the L/C Issuer or its holding company, as the case
may be, as specified in subsection (a) or (b) of this Section, showing the
calculation thereof, in reasonable detail, and delivered to the Company
shall be conclusive absent manifest error. 
The Company shall pay (or cause the applicable Designated Borrower to
pay) such Lender or the L/C Issuer, as the case may be, the amount shown as due
on any such certificate within 10 days after receipt thereof.

 

56

 

(d)           Delay
in Requests.  Failure or delay on the
part of any Lender or the L/C Issuer to demand compensation pursuant to the
foregoing provisions of this Section shall not constitute a waiver of such
Lender’s or the L/C Issuer’s right to demand such compensation, provided
that no Borrower shall be required to compensate a Lender or the L/C Issuer
pursuant to the foregoing provisions of this Section for any increased
costs incurred or reductions suffered more than 120 days prior to the date that
such Lender or the L/C Issuer, as the case may be, notifies the Company of the
Change in Law giving rise to such increased costs or reductions and of such
Lender’s or the L/C Issuer’s intention to claim compensation therefor (except
that, if the Change in Law giving rise to such increased costs or reductions is
retroactive, then the 120-day period referred to above shall be extended to
include the period of retroactive effect thereof).

 

(e)           Additional Reserve Requirements.  The Company shall pay (or cause the
applicable Designated Borrower to pay) to each Lender,  (i)
as long as such Lender shall be required to maintain reserves with respect to
liabilities or assets consisting of or including Eurocurrency funds or deposits
(currently known as “Eurocurrency liabilities”), additional interest on the
unpaid principal amount of each Eurocurrency Rate Loan equal to the actual
costs of such reserves allocated to such Loan by such Lender (as determined by
such Lender in good faith, which determination shall be conclusive), and (ii)
as long as such Lender shall be required to comply with any reserve ratio
requirement or analogous requirement of any other central banking or financial
regulatory authority imposed in respect of the maintenance of the Commitments
or the funding of the Eurocurrency Rate Loans, such additional costs (expressed
as a percentage per annum and rounded upwards, if necessary, to the nearest
five decimal places) equal to the actual costs allocated to such Commitment or
Loan by such Lender (as determined by such Lender in good faith, which
determination shall be conclusive), which in each case shall be due and payable
on each date on which interest is payable on such Loan, provided the
Company shall have received at least 10 days’ prior notice (with a copy to the
Administrative Agent) of such additional interest or costs from such
Lender.  If a Lender fails to give notice
10 days prior to the relevant Interest Payment Date, such additional interest
or costs shall be due and payable 10 days from receipt of such notice.

 

3.05        Compensation for Losses.

 

Upon
demand of any Lender (with a copy to the Administrative Agent) from time to
time, the Company shall promptly compensate (or cause the applicable Designated
Borrower to compensate) such Lender for and hold such Lender harmless from any
loss, cost or expense incurred by it as a result of:

 

(a)           any continuation, conversion, payment or prepayment of any
Loan other than a Base Rate Loan on a day other than the last day of the
Interest Period for such Loan (whether voluntary, mandatory, automatic, by
reason of acceleration, or otherwise);

 

(b)           any failure by any Borrower (for a reason other than the
failure of such Lender to make a Loan) to prepay, borrow, continue or convert
any Loan other than a Base Rate Loan on the date or in the amount notified by
the Company or the applicable Designated Borrower; or

 

(c)           any assignment of a Eurocurrency Rate Loan on a day other
than the last day of the Interest Period therefor as a result of a request by
the Company pursuant to Section 11.13;

 

including
any loss of any foreign exchange losses and any loss or expense (but excluding loss
of margin) arising from the liquidation or reemployment of funds obtained by it
to maintain such Loan, from fees payable to terminate the deposits from which
such funds were obtained or from the performance of any foreign exchange
contract.

 

57

 

For
purposes of calculating amounts payable by the Company (or the applicable
Designated Borrower) to the Lenders under this Section 3.05, each
Lender shall be deemed to have funded each Eurocurrency Rate Loan made by it at
the Eurocurrency Rate for such Loan by a matching deposit or other borrowing in
the offshore interbank market for such currency for a comparable amount and for
a comparable period, whether or not such Eurocurrency Rate Loan was in fact so
funded.

 

3.06        Mitigation Obligations; Replacement
of Lenders.

 

(a)           Designation of a Different Lending Office.  If any Lender requests compensation under Section 3.04,
or any Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 3.01,
or if any Lender gives a notice pursuant to Section 3.02, then such
Lender shall use reasonable efforts to designate a different Lending Office for
funding or booking its Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the
reasonable judgment of such Lender, such designation or assignment (i) would
eliminate or reduce amounts payable pursuant to Section 3.01 or 3.04,
as the case may be, in the future, or eliminate the need for the notice
pursuant to Section 3.02, as applicable, and (ii) in each case,
would not subject such Lender to any unreimbursed cost or expense and would not
otherwise be disadvantageous to such Lender. 
The Company hereby agrees to pay (or to cause the applicable Designated
Borrower to pay) all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.

 

(b)           Replacement
of Lenders.  If any Lender requests compensation
under Section 3.04, if any Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 3.01, or if any Lender gives
notice pursuant to Section 3.02, the Company may replace such Lender in
accordance with Section 11.13.

 

3.07        Survival.

 

All
of the Borrowers’ obligations under Sections 3.01, 3.02, 3.04
and 3.05 shall survive termination of the Aggregate Commitments and
repayment of all other Obligations hereunder.

 

ARTICLE IV

GUARANTY

 

4.01        The Guaranty.

 

(a)           Each
of the Subsidiary Guarantors hereby jointly and severally guarantees to each
Lender and the Administrative Agent as hereinafter provided, as primary obligor
and not as surety, the prompt payment of the Obligations in full when due
(whether at stated maturity, as a mandatory prepayment, by acceleration, as a
mandatory cash collateralization or otherwise) strictly in accordance with the
terms thereof.  The Subsidiary Guarantors
hereby further agree that if any of the Obligations are not paid in full when
due (whether at stated maturity, as a mandatory prepayment, by acceleration, as
a mandatory cash collateralization or otherwise), the Subsidiary Guarantors
will, jointly and severally, promptly pay the same, without any demand or
notice whatsoever, and that in the case of any extension of time of payment or
renewal of any of the Obligations, the same will be promptly paid in full when
due (whether at extended maturity, as a mandatory prepayment, by acceleration,
as a mandatory cash collateralization or otherwise) in accordance with the
terms of such extension or renewal.

 

(b)           The
Company hereby guarantees to each Lender and the Administrative Agent as
hereinafter provided, as primary obligor and not as surety, the prompt payment
of the Designated Borrower Obligations 

 

58

 

in
full when due (whether at stated maturity, as a mandatory prepayment, by
acceleration, as a mandatory cash collateralization or otherwise) strictly in
accordance with the terms thereof.  The
Company hereby further agrees that if any of the Designated Borrower
Obligations are not paid in full when due (whether at stated maturity, as a
mandatory prepayment, by acceleration, as a mandatory cash collateralization or
otherwise), the Company will promptly pay the same, without any demand or
notice whatsoever, and that in the case of any extension of time of payment or
renewal of any of the Designated Borrower Obligations, the same will be
promptly paid in full when due (whether at extended maturity, as a mandatory
prepayment, by acceleration, as a mandatory cash collateralization or
otherwise) in accordance with the terms of such extension or renewal.

 

(c)           Notwithstanding
any provision to the contrary contained herein or in any other of the Loan
Documents, the obligations of each Guarantor under this Agreement and the other
Loan Documents shall be limited to an aggregate amount equal to the largest
amount that would not render such obligations subject to avoidance under the
Debtor Relief Laws or any comparable provisions of any applicable state law.

 

4.02        Obligations Unconditional.

 

(a)           The
obligations of the Subsidiary Guarantors under Section 4.01(a) are joint
and several, irrevocable, absolute and unconditional, irrespective of the
value, genuineness, validity, regularity or enforceability of any of the Loan
Documents or any other agreement or instrument referred to therein, or any
substitution, release, impairment or exchange of any other guarantee of or
security for any of the Obligations, and, to the fullest extent permitted by
applicable law, irrespective of any other circumstance whatsoever which might
otherwise constitute a legal or equitable discharge or defense of a surety or
guarantor, it being the intent of this Section 4.02(a) that the
obligations of the Subsidiary Guarantors hereunder shall be absolute and
unconditional under any and all circumstances. 
Each Subsidiary Guarantor agrees that such Subsidiary Guarantor shall
have no right of subrogation, indemnity, reimbursement or contribution against
the Company or any other Subsidiary Guarantor for amounts paid under this Article
IV until such time as the Obligations have been Fully Satisfied.

 

(b)           The
obligations of the Company under Section 4.01(b) are irrevocable,
absolute and unconditional, irrespective of the value, genuineness, validity,
regularity or enforceability of any of the Loan Documents or any other
agreement or instrument referred to therein, or any substitution, release,
impairment or exchange of any other guarantee of or security for any of the
Designated Borrower Obligations, and, to the fullest extent permitted by
applicable law, irrespective of any other circumstance whatsoever which might
otherwise constitute a legal or equitable discharge or defense of a surety or
guarantor, it being the intent of this Section 4.02(b) that the
obligations of the Company hereunder shall be absolute and unconditional under
any and all circumstances.  The Company
agrees that  it shall have no right of
subrogation, indemnity, reimbursement or contribution against the any
Designated Borrower for amounts paid under this Article IV until such
time as the Designated Borrower Obligations have been Fully Satisfied.

 

(c)           Without
limiting the generality of the foregoing subsections (a) and (b), it is agreed
that, to the fullest extent permitted by law, the occurrence of any one or more
of the following shall not alter or impair the liability of any Guarantor
hereunder which shall remain absolute and unconditional as described above:

 

(i)            at any time or from time to time, without notice to any
Guarantor, the time for any performance of or compliance with any of the
Obligations shall be extended, or such performance or compliance shall be
waived;

 

59

 

(ii)           any of the acts mentioned in any of the provisions of any
of the Loan Documents  or any other
agreement or instrument referred to in the Loan Documents shall be done or
omitted;

 

(iii)          the maturity of any of the Obligations shall be
accelerated, or any of the Obligations shall be modified, supplemented or
amended in any respect, or any right under any of the Loan Documents or any
other agreement or instrument referred to in the Loan Documents shall be waived
or any other guarantee of any of the Obligations or any security therefor shall
be released, impaired or exchanged in whole or in part or otherwise dealt with;
or

 

(iv)          any of the Obligations shall be determined to be void or
voidable (including, without limitation, for the benefit of any creditor of any
Guarantor) or shall be subordinated to the claims of any Person (including,
without limitation, any creditor of any Guarantor).

 

With
respect to its obligations hereunder, each Guarantor hereby expressly waives
diligence, presentment, demand of payment, protest and all notices whatsoever,
and any requirement that the Administrative Agent or any Lender exhaust any
right, power or remedy or proceed against any Person under any of the Loan
Documents or any other agreement or instrument referred to in the Loan
Documents or against any other Person under any other guarantee of, or security
for, any of the Obligations.

 

4.03        Reinstatement.

 

(a)           The
obligations of the Subsidiary Guarantors under this Article IV shall be
automatically reinstated if and to the extent that for any reason any payment
by or on behalf of any Person in respect of the Obligations is rescinded or
must be otherwise restored by any holder of any of the Obligations, whether as
a result of any proceedings in bankruptcy or reorganization or otherwise, and
each Subsidiary Guarantor agrees that it will indemnify the Administrative
Agent and each Lender on demand for all reasonable costs and expenses
(including, without limitation, fees and expenses of counsel) incurred by the
Administrative Agent or such Lender in connection with such rescission or
restoration, including any such costs and expenses incurred in defending
against any claim alleging that such payment constituted a preference,
fraudulent transfer or similar payment under any bankruptcy, insolvency or
similar law.

 

(b)           The
obligations of the Company under this Article IV shall be automatically
reinstated if and to the extent that for any reason any payment by or on behalf
of any Person in respect of the Designated Borrower Obligations is rescinded or
must be otherwise restored by any holder of any of the Designated Borrower
Obligations, whether as a result of any proceedings in bankruptcy or
reorganization or otherwise, and the Company agrees that it will indemnify the
Administrative Agent and each Lender on demand for all reasonable costs and
expenses (including, without limitation, fees and expenses of counsel) incurred
by the Administrative Agent or such Lender in connection with such rescission
or restoration, including any such costs and expenses incurred in defending
against any claim alleging that such payment constituted a preference,
fraudulent transfer or similar payment under any bankruptcy, insolvency or
similar law.

 

4.04        Certain Additional Waivers.

 

Each
Guarantor agrees that such Guarantor shall have no right of recourse to
security for the Obligations, except through the exercise of rights of
subrogation pursuant to Section 4.02 and through the exercise of rights
of contribution pursuant to Section 4.06.

 

60

 

4.05        Remedies.

 

(a)           The
Subsidiary Guarantors agree that, to the fullest extent permitted by law, as
between the Subsidiary Guarantors, on the one hand, and the Administrative Agent
and the Lenders, on the other hand, the Obligations may be declared to be
forthwith due and payable as provided in Section 9.02 (and shall be
deemed to have become automatically due and payable in the circumstances
provided in said Section 9.02) for purposes of Section 4.01(a)
notwithstanding any stay, injunction or other prohibition preventing such
declaration (or preventing the Obligations from becoming automatically due and
payable) as against any other Person and that, in the event of such declaration
(or the Obligations being deemed to have become automatically due and payable),
the Obligations (whether or not due and payable by any other Person) shall
forthwith become due and payable by the Subsidiary Guarantors for purposes of Section
4.01(a).

 

(b)           The
Company agrees that, to the fullest extent permitted by law, as between the
Company, on the one hand, and the Administrative Agent and the Lenders, on the
other hand, the Designated Borrower Obligations may be declared to be forthwith
due and payable as provided in Section 9.02 (and shall be deemed to have
become automatically due and payable in the circumstances provided in said Section
9.02) for purposes of Section 4.01(b) notwithstanding any stay,
injunction or other prohibition preventing such declaration (or preventing the
Designated Borrower Obligations from becoming automatically due and payable) as
against any other Person and that, in the event of such declaration (or the
Designated Borrower Obligations being deemed to have become automatically due
and payable), the Designated Borrower Obligations (whether or not due and
payable by any other Person) shall forthwith become due and payable by the
Company for purposes of Section 4.01(b).

 

4.06        Rights of Contribution.

 

The
Subsidiary Guarantors hereby agree as among themselves that, in connection with
payments made hereunder, each Subsidiary Guarantor shall have a right of
contribution from each other Subsidiary Guarantor in accordance with applicable
Law.  Such contribution rights shall be
subordinate and subject in right of payment to the Obligations until such time
as the Obligations have been Fully Satisfied, and none of the Subsidiary
Guarantors shall exercise any such contribution rights until the Obligations
have been Fully Satisfied.

 

4.07        Guarantee of Payment; Continuing
Guarantee.

 

(a)           The
guarantee given by the Subsidiary Guarantors in this Article IV is a
guaranty of payment and not of collection, is a continuing guarantee, and shall
apply to all Obligations whenever arising.

 

(b)           The
guarantee given by the Company in this Article IV is a guaranty of
payment and not of collection, is a continuing guarantee, and shall apply to
all Designated Borrower Obligations whenever arising.

 

ARTICLE V

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

 

5.01        Conditions of Initial Credit
Extension.  The
obligation of the L/C Issuer and each Lender to make its initial Credit
Extension hereunder is subject to satisfaction of the following conditions
precedent:

 

(a)           Receipt by the Administrative Agent of the following:

 

61

 

(i)            executed counterparts of this
Agreement and the other Loan Documents, each properly executed by a Responsible
Officer of the signing Loan Party and, in the case of this Agreement, by each
Lender;

 

(ii)           copies of the Organizational
Documents of each Loan Party certified to be true and complete as of a recent
date by the appropriate Governmental Authority of the state or other
jurisdiction of its incorporation or organization, where applicable, and certified
by a secretary or assistant secretary of such Loan Party to be true and correct
as of the Closing Date;

 

(iii)          such certificates of resolutions or
other action, incumbency certificates and/or other certificates of Responsible
Officers of each Loan Party as the Administrative Agent may require evidencing
the identity, authority and capacity of each Responsible Officer thereof
authorized to act as a Responsible Officer in connection with this Agreement
and the other Loan Documents to which such Loan Party is a party;

 

(iv)          such documents and certifications as
the Administrative Agent may reasonably require to evidence that each Loan
Party is duly organized or formed, and that the Company and each Subsidiary
Guarantor is validly existing, in good standing and qualified to engage in
business in its jurisdiction of formation;

 

(v)           a favorable opinion of Pillsbury
Winthrop Shaw Pittman LLP, special counsel to the Loan Parties and Edward C.
Wetmore, general counsel for the Company, addressed to the Administrative Agent
and each Lender party to this Agreement on the Closing Date;

 

(vi)          a certificate signed by a Responsible
Officer of the Company certifying (A) that the conditions specified in Sections 5.02(a)
and (b) have been satisfied; and (B) that there has been no event or
circumstance since the date of the Audited Financial Statements that has had or
could be reasonably expected to have, either individually or in the aggregate,
a Material Adverse Effect; and

 

(vii)         evidence that the Existing Credit
Agreement has been or concurrently with the Closing Date is being terminated,
all loans thereunder shall have been repaid and all Liens securing obligations
under the Existing Credit Agreement have been or concurrently with the Closing
Date are being released; and

 

(b)           Any fees required to be paid on or before the Closing Date
shall have been paid.

 

(c)           Unless waived by the Administrative Agent, the Company
shall have paid all reasonable fees, charges and disbursements of counsel to
the Administrative Agent to the extent invoiced prior to or on the Closing
Date.

 

5.02        Conditions to all Credit Extensions.

 

The
obligation of each Lender and the L/C Issuer to honor any Request for Credit
Extension (other than a Committed Loan Notice requesting only a conversion of
Committed Loans to the other Type, or a continuation of Eurocurrency Rate
Loans) is subject to the following conditions precedent:

 

(a)           The representations and warranties of the Company and each
other Loan Party contained in Article VI or any other Loan Document
or which are contained in any document 

 

62

 

furnished
at any time under or in connection herewith or therewith, shall be true and
correct in all material respects on and as of the date of such Credit Extension,
except to the extent that such representations and warranties specifically
refer to an earlier date, in which case they shall be true and correct as of
such earlier date.

 

(b)           No Default or Event of Default shall exist, or would
result from such proposed Credit Extension or the application of the proceeds
thereof.

 

(c)           The Administrative Agent and, if applicable, the L/C
Issuer or the Swing Line Lender shall have received a Request for Credit
Extension in accordance with the requirements hereof.

 

(d)           If the applicable Borrower is a Designated Borrower, then
the conditions of Section 2.14 to the designation of such Borrower
as a Designated Borrower shall have been met to the satisfaction of the
Administrative Agent.

 

(e)           In the case of a Credit Extension to be denominated in an
Alternative Currency, there shall not have occurred any change in national or
international financial, political or economic conditions or currency exchange
rates or exchange controls which in the reasonable opinion of the Administrative
Agent (in the case of any Loans to be denominated in an Alternative Currency)
or the L/C Issuer (in the case of any Letter of Credit to be denominated in an
Alternative Currency) would make it impracticable for such Credit Extension to
be denominated in the relevant Alternative Currency.

 

Each
Request for Credit Extension (other than a Committed Loan Notice requesting
only a conversion of Committed Loans to the other Type or a continuation of
Eurocurrency Rate Loans) submitted by any Borrower shall be deemed to be a
representation and warranty that the conditions specified in Sections 5.02(a)
and (b) have been satisfied on and as of the date of the applicable
Credit Extension.

 

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

 

In
order to induce the Lenders to enter into this Agreement and to make the Loans,
to induce the L/C Issuer to issue Letters of Credit and to induce other Lenders
to purchase participations therein, the Borrowers represent and warrant to each
Lender, on the date of this Agreement, on each date of any Credit Extension,
that the following statements are true, correct and complete:

 

6.01        Existence, Qualification and Power.

 

(a)           Each
Loan Party (i) is a corporation, partnership, trust or limited liability
company duly organized, validly existing and in good standing under the Laws of
its jurisdiction of organization and (ii) has all requisite power and authority
to own and operate its properties and to carry on its business as now conducted
and as proposed to be conducted.  Each
Loan Party has all requisite power and authority to enter into the Loan
Documents to which it is a party and to carry out the transactions contemplated
thereby.

 

(b)           Each
Loan Party is qualified to do business and in good standing in every
jurisdiction where its assets are located and wherever necessary to carry out
its business and operations, except to the extent that the failure to be so
qualified or in good standing has not had and will not have a Material Adverse
Effect.

 

63

 

(c)           All of the Subsidiaries of the Company as of the
Closing Date and their jurisdictions of organization are identified in Schedule 6.01(c) annexed
hereto.  The Equity Interests of each of
the Subsidiaries of the Company identified in Schedule 6.01(c) annexed
hereto is duly authorized, validly issued, fully paid and nonassessable and
none of the capital stock constitutes Margin Stock.  Schedule 6.01(c) annexed hereto
correctly sets forth, as of the Closing Date, the ownership interest of the
Company and each of its Subsidiaries in each of the Subsidiaries of the Company
identified therein.  To the best
knowledge of the Company, each Material Subsidiary as of the Closing Date has
been so designated on said Schedule 6.01(c).

 

6.02        Authorization; No Contravention.

 

(a)           The execution, delivery and performance of the Loan
Documents have been duly authorized by all necessary corporate action on the
part of each Loan Party that is a party thereto.

 

(b)           The execution, delivery and performance by Loan
Parties of the Loan Documents to which they are parties and the consummation of
the transactions contemplated by the Loan Documents do not and will not
(i) violate any provision of any material law or any material governmental
rule or regulation applicable to the Company or any of its Material
Subsidiaries or any other Loan Party, the Organizational Documents of the
Company or any of its Subsidiaries, or any material order, judgment or decree
of any court or other agency of government binding on the Company or any of its
Material Subsidiaries or any other Loan Party, (ii) conflict with, result
in a breach of or constitute (with due notice or lapse of time or both) a
default under any Contractual Obligation of the Company or any of its Material
Subsidiaries or any other Loan Party, or (iii) result in or require the
creation or imposition of any Lien under any such Contractual Obligation upon
any of the properties or assets of the Company or any of its Subsidiaries.

 

(c)           The execution, delivery and performance by the Loan
Parties of the Loan Documents to which they are parties and the consummation of
the transactions contemplated by the Loan Documents do not and will not require
any registration with, consent or approval of, or notice to, or other action
to, with or by, any federal, state or other governmental authority or
regulatory body except any thereof that have been obtained and are in full
force and effect.

 

(d)           Each of the Loan Documents has been duly executed
and delivered by each Loan Party that is a party thereto and is the legally
valid and binding obligation of such Loan Party, enforceable against such Loan
Party in accordance with its respective terms, except as may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws relating to
or limiting creditors’ rights generally or by equitable principles relating to
enforceability.

 

6.03        Financial Statements.

 

(a)           The Audited Financial Statements (i) were
prepared in conformity with GAAP, except as otherwise noted therein and (ii) fairly
present, in all material respects, the financial position (on a consolidated
basis) of the entities described in such financial statements as at the
respective dates thereof and the results of operations and cash flows (on a
consolidated basis) of the entities described therein for each of the periods
then ended.

 

(b)           The unaudited consolidated balance sheet of the
Company and its Subsidiaries dated March 31, 2010, and the related
consolidated statements of income or operations, shareholders’ equity and cash
flows for the fiscal quarter ended on that date (i) were prepared in
accordance with GAAP consistently applied throughout the period covered
thereby, except as otherwise expressly noted therein, 

 

64

 

and
(ii) fairly present, in all material respects, the financial condition of
the Company and its Subsidiaries as of the date thereof and their results of
operations for the period covered thereby, subject, in the case of
clauses (i) and (ii), to the absence of footnotes and to normal
year-end audit adjustments.

 

(c)           The consolidated operating and related budgets of
the Company and its Subsidiaries delivered pursuant to Section 7.01(i) were
prepared in good faith based upon assumptions believed by the Company to be reasonable
at the time when made and at the time when delivered pursuant to Section 7.01(i) (it
being understood that the forecasts contained therein are subject to
significant uncertainties and contingencies, many of which are beyond the
control of the Company, and no assurance can be given that the forecasts will
be realized).

 

6.04        No Material Adverse Effect.

 

Since
December 31, 2009, no event or change has occurred that has caused or
evidences, either in any case or in the aggregate, a Material Adverse Effect.

 

6.05        Ownership of Property; Liens.

 

The
Company and each of its Subsidiaries have good title to, or leasehold interests
in, all properties that are necessary for the conduct of their respective
businesses as now conducted and as proposed to be conducted, free and clear of
all Liens (other than Permitted Liens), except where the failure to have such
good title or leasehold interests could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

6.06        Litigation.

 

Except
as set forth in Schedule 6.06 annexed hereto, there are no actions,
suits, proceedings, arbitrations or governmental investigations (whether or not
purportedly on behalf of the Company or any of its Subsidiaries) at law or in
equity, or before or by any federal, state, municipal or other governmental
department, commission, board, bureau, agency or instrumentality, domestic or
foreign (including any Environmental Claims) that are pending or, to the
knowledge of the Company, threatened against or affecting the Company or any of
its Subsidiaries that, individually or in the aggregate (taking into
consideration, among other things, the ability of the Company and its
Subsidiaries to obtain indemnification in respect thereof from Persons that are
willing and able to honor any existing indemnification obligations with respect
thereto), could reasonably be expected to result in a Material Adverse
Effect.  For the avoidance of doubt, if
any actions, suits, proceedings, arbitrations or governmental investigations
identified on Schedule 6.06 annexed hereto shall result in a Material
Adverse Effect, the Loan Parties hereby agree that the Lenders shall be under
no obligation to make any Loan and the L/C Issuers shall be under no obligation
to issue or extend any Letter of Credit hereunder.

 

6.07        Taxes.

 

Each
of the Company, each of its Subsidiaries and each other corporation (each a “Consolidated
Corporation”) with whom the Company or any of its Subsidiaries joins in the
filing of a consolidated return has filed all Federal income tax returns and
other material tax returns and reports, domestic and foreign, required to be
filed by it, and has paid all material taxes, assessments, fees and other
governmental charges levied or imposed upon it or its respective properties,
income or assets to the extent the same have become due and payable, except
those which are not yet delinquent or which are being contested in good
faith.  Each of the Company, each of its
Subsidiaries and each Consolidated Corporation has paid, or has provided
adequate reserves (in the good faith judgment of the management of the Company)
in accordance with GAAP (or, in the case of a Foreign Subsidiary, appropriate
reserves 

 

65

 

under
generally accepted accounting principles in the applicable jurisdiction), for
the payment of, all such material taxes, assessments, fees and charges relating
to all prior taxable years and the current taxable year of the Company, each of
its Subsidiaries and each Consolidated Corporation.  To the best knowledge of the Company, there
is no proposed tax assessment against the Company, any of its Subsidiaries or
any Consolidated Corporation that could reasonably be expected to have a Material
Adverse Effect.

 

6.08        Government Regulation.

 

Neither
the making of any extension of credit hereunder, nor the use of any of the
proceeds thereof, will violate the provisions of Regulation T, U or X of the
Board of Governors of the Federal Reserve System.  None of the Company, any Person Controlling
the Company, or any Subsidiary is or is required to be registered as an “investment
company” under the Investment Company Act of 1940.

 

6.09        Employee Benefit Plans.

 

(a)           The Company and each of its Subsidiaries is in
compliance with all applicable provisions of ERISA, the Internal Revenue Code
and other applicable federal, state or foreign law with respect to each Plan,
and has performed all of its obligations under each Plan, except to the extent
that failure to comply, individually or in the aggregate, could not reasonably
be expected to have a Material Adverse Effect. 
The Company, each of its Subsidiaries and each ERISA Affiliate has made
all required contributions to any Plan subject to Section 412 or Section 430
of the Internal Revenue Code, except to the extent that a failure to do so
could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

 

(b)           There are no pending or, to the best knowledge of
the Company, threatened claims, actions or lawsuits, or action by any
Governmental Authority, with respect to any Pension Plan which, individually or
in the aggregate, have resulted or could reasonably be expected to result in a
Material Adverse Effect.

 

(c)           (i) No ERISA Event has occurred or is reasonably
expected to occur; (ii) no Pension Plan is in “at risk status” as defined
in Section 430(i)(4) of the Code, except to the extent such status
could not reasonably be expected to have a Material Adverse Effect if such
Pension Plan or Pension Plans were then terminated, unless such Pension Plan is
not reasonably likely to be terminated; and (iii) neither the Company nor
any of its Subsidiaries nor any ERISA Affiliate has engaged in a transaction
that could be subject to Section 4069 or 4212(c) of ERISA that,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

 

6.10        Environmental Protection.

 

The
Company and each of its Subsidiaries is in compliance with all applicable
Environmental Laws in respect of the conduct of its business and the ownership
of its property, except such noncompliance as could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.  Without limiting the effect of the preceding
sentence:

 

(a)           neither the Company nor any of its Subsidiaries has
received a complaint, order, citation, notice or other written communication
with respect to the existence or alleged existence of a violation of, or
liability arising under, any Environmental Law, the outcome of which,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect; and

 

(b)           to the best of the Company’s knowledge, there are no
environmental, health or safety conditions, in each case relating to exposure
to, or release or threatened release of, Hazardous Materials 

 

66

 

existing
or reasonably expected to exist at any real property owned, operated or leased
by the Company or any of its Subsidiaries, including off-site waste treatment
or disposal facilities used by the Company or its Subsidiaries, which could
reasonably be expected to require any construction or other capital costs or
clean-up obligations to be incurred prior to the Maturity Date in order to
assure compliance with any applicable Environmental Law, including provisions
regarding clean-up, to the extent that any of such conditions, construction or
other capital costs or clean-up obligations, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.

 

6.11        Disclosure.

 

All
factual information (taken as a whole) furnished by or on behalf of the Company
or any of its Subsidiaries to the Administrative Agent or any Lender in writing
on or before the Closing Date (including any such information contained in the
Confidential Information Memorandum or in any Loan Document or any other
document, certificate or written statement furnished to the Lenders by or on
behalf of the Company or any of its Subsidiaries) for use in connection with
the transactions contemplated by this Agreement is true and correct in all
material respects and does not omit to state a material fact necessary in order
to make the statements contained herein and therein, taken as a whole, not
misleading at such time in light of the circumstances in which the same were
made, it being understood that, for purposes of this Section 6.11,
such factual information does not include projections and pro forma financial
information.  Any projections and pro
forma financial information contained in such materials are based upon good
faith estimates and assumptions believed by the Company to be reasonable at the
time made, it being recognized by the Lenders that such projections as to
future events are not to be viewed as facts and that actual results during the
period or periods covered by any such projections may differ from the projected
results.

 

6.12        Representations as to Foreign
Obligors.

 

The
Company and each Foreign Obligor represents and warrants to the Administrative
Agent and the Lenders that:

 

(a)           Such Foreign Obligor is subject to civil and
commercial Laws with respect to its obligations under this Agreement and the
other Loan Documents to which it is a party (collectively as to such Foreign
Obligor, the “Applicable Foreign Obligor Documents”), and the execution,
delivery and performance by such Foreign Obligor of the Applicable Foreign
Obligor Documents constitute and will constitute private and commercial acts
and not public or governmental acts. 
Neither such Foreign Obligor nor any of its property has any immunity
from jurisdiction of any court or from any legal process (whether through
service or notice, attachment prior to judgment, attachment in aid of
execution, execution or otherwise) under the laws of the jurisdiction in which
such Foreign Obligor is organized and existing in respect of its obligations
under the Applicable Foreign Obligor Documents.

 

(b)           The Applicable Foreign Obligor Documents are in
proper legal form under the Laws of the jurisdiction in which such Foreign
Obligor is organized and existing for the enforcement thereof against such
Foreign Obligor under the Laws of such jurisdiction, and to ensure the
legality, validity, enforceability, priority or admissibility in evidence of
the Applicable Foreign Obligor Documents. 
It is not necessary to ensure the legality, validity, enforceability,
priority or admissibility in evidence of the Applicable Foreign Obligor
Documents that the Applicable Foreign Obligor Documents be filed, registered or
recorded with, or executed or notarized before, any court or other authority in
the jurisdiction in which such Foreign Obligor is organized and existing or
that any registration charge or stamp or similar tax be paid on or in respect
of the Applicable Foreign Obligor Documents or any other document, except for (i) any

 

67

 

such
filing, registration, recording, execution or notarization as has been made or
is not required to be made until the Applicable Foreign Obligor Document or any
other document is sought to be enforced and (ii) any charge or tax as has
been timely paid.

 

(c)           There is no tax, levy, impost, duty, fee, assessment
or other governmental charge, or any deduction or withholding, imposed by any
Governmental Authority in or of the jurisdiction in which such Foreign Obligor
is organized and existing either (i) on or by virtue of the execution or
delivery of the Applicable Foreign Obligor Documents or (ii) on any
payment to be made by such Foreign Obligor pursuant to the Applicable Foreign
Obligor Documents, except as has been disclosed to the Administrative Agent.

 

(d)           The execution, delivery and performance of the
Applicable Foreign Obligor Documents executed by such Foreign Obligor are,
under applicable foreign exchange control regulations of the jurisdiction in
which such Foreign Obligor is organized and existing, not subject to any
notification or authorization except (i) such as have been made or
obtained or (ii) such as cannot be made or obtained until a later date (provided
that any notification or authorization described in clause (ii) shall
be made or obtained as soon as is reasonably practicable).

 

6.13        Anti-Terrorism Laws.

 

Neither any Loan Party nor any of its Subsidiaries
is an “enemy” or an “ally of the enemy” within the meaning of Section 2 of
the Trading with the Enemy Act of the United States of America (50 U.S.C. App.
§§ 1 et seq.) (the “Trading
with the Enemy Act”), as amended. 
The use of the proceeds of the Loans will not violate (a)
the Trading with the Enemy Act, as amended, (b) any of the foreign
assets control regulations of the United States Treasury Department (31 CFR,
Subtitle B, Chapter V, as amended) or any enabling legislation or executive
order relating thereto or (c) the Patriot Act.  None of the Loan Parties (i)
is a blocked person described in Section 1 of the Anti-Terrorism Order or (ii)
to the best of its knowledge, engages in any dealings or transactions, or is
otherwise associated, with any such blocked person.

 

ARTICLE VII

AFFIRMATIVE COVENANTS

 

The
Company covenants and agrees that, so long as any of the Commitments hereunder
shall remain in effect and until payment in full of all of the Loans and other
Obligations and the cancellation or expiration of all Letters of Credit, unless
Required Lenders shall otherwise give prior written consent, the Company shall
perform, and shall cause each of its Subsidiaries to perform, all covenants in
this Article VII.

 

7.01        Financial Statements and Other
Reports.

 

The
Company will deliver to the Administrative Agent and each Lender, in form and
detail satisfactory to the Administrative Agent and the Required Lenders:

 

(a)           (i) no later than the date on which such
financial statements are filed with the SEC but in any event no later than 45
days after the end of each of the first three fiscal quarters of each fiscal
year, the consolidated balance sheet of the Company, its Subsidiaries and its
Unrestricted Subsidiaries as at the end of the first three fiscal quarters of
each fiscal year and the related consolidated statements of income,

 

68

 

stockholders’
equity and cash flows of the Company, its Subsidiaries and its Unrestricted
Subsidiaries for such fiscal quarter and for the period from the beginning of
the then current fiscal year to the end of such fiscal quarter, and (ii) promptly
when available but in any event no later than 45 days after the end of each of
the first three fiscal quarters of each fiscal year, the consolidated balance
sheet of the Company and its Subsidiaries as at the end of each fiscal quarter
and the related consolidated statements of income, stockholders’ equity and
cash flows of the Company and its Subsidiaries for such fiscal quarter and for
the period from the beginning of the then current fiscal year to the end of
such fiscal quarter, setting forth in each case (under both clauses (i) and
(ii) above) in comparative form the corresponding figures for the
corresponding periods of the previous fiscal year, all in reasonable detail and
certified (in the case of both clauses (i) and (ii) above) by the
chief financial officer of the Company that they fairly present, in all
material respects, the financial condition of the Company, its Subsidiaries and
its Unrestricted Subsidiaries or the Company and its Subsidiaries, as the case
may be, as at the dates indicated and the results of their operations and their
cash flows for the periods indicated, subject to changes resulting from audit
and normal year-end adjustments;

 

(b)           (i) no later than the date on which such
financial statements are filed with the SEC and in any event no later than 90
days after the end of each fiscal year, the audited consolidated balance sheet
of the Company, its Subsidiaries and its Unrestricted Subsidiaries as at the
end of each fiscal year and the related consolidated statements of income,
stockholders’ equity and cash flows of the Company, its Subsidiaries and its
Unrestricted Subsidiaries for such fiscal year, (ii) promptly when
available but in any event no later than 90 days after the end of each fiscal
year, the audited consolidated balance sheet of the Company and its
Subsidiaries as at the end of such fiscal year and the related consolidated
statements of income, stockholders’ equity and cash flows of the Company and
its Subsidiaries for such fiscal year, setting forth in each case (under both
clauses (i) and (ii) above) in comparative form the corresponding
figures for the previous fiscal year, all in reasonable detail and certified
(in the case of both clauses (i) and (ii) above) by the chief
financial officer of the Company that they fairly present, in all material
respects, the financial condition of the Company and its Subsidiaries as at the
end of such fiscal year and the results of their operations and their cash
flows for such fiscal year and (iii) in the case of both clauses (i) and (ii) above,
a report thereon of a firm of independent certified public accountants of
recognized national standing selected by the Company, which report shall be
unqualified as to the scope of audit or as to the going concern status of the
Company, its Subsidiaries and its Unrestricted Subsidiaries or the Company and
its Subsidiaries, as the case may be (in either case, taken as a whole), and
shall state that such consolidated financial statements fairly present, in all
material respects, the consolidated financial condition of the Company, its
Subsidiaries and its Unrestricted Subsidiaries or the Company and its
Subsidiaries, as the case may be, as at the end of such fiscal year and the
results of their operations and their cash flows for such fiscal year in
conformity with GAAP applied on a basis consistent with prior years (except as
otherwise disclosed in such financial statements) and that the examination by
such accountants in connection with such consolidated financial statements has
been made in accordance with generally accepted auditing standards;

 

(c)           together with each delivery of financial statements
of the Company and its Subsidiaries pursuant to subdivisions (a) and (b) above,
a Compliance Certificate of the Company (i) stating that the applicable
Responsible Officer does not have knowledge of the existence, as at the date of
such Compliance Certificate, of any condition or event that constitutes a
Default or Event of Default, or, if any such condition or event exists,
specifying the nature and period of existence thereof and what action the
Company has taken, is taking and proposes to take with respect thereto; (ii) demonstrating
in reasonable detail compliance during and at the end of the applicable
accounting periods with the covenants set forth in Section 8.06 and
with any specific dollar amounts specified in respect of any restrictions
contained in any other provisions of Article VIII (which delivery
may, unless the Administrative Agent, or a Lender requests executed originals,
be by electronic communication including fax or email and shall be deemed to be
an original authentic counterpart thereof for all purposes); and (iii) setting
forth any change in the

 

69

 

identity
of any of the Subsidiaries or Unrestricted Subsidiaries of the Company since
the Closing Date (or, if applicable, since the date of the most recent
Compliance Certificate delivered to Lenders in accordance with this clause
(c));

 

(d)           together with each delivery of consolidated
financial statements of the Company and its Subsidiaries pursuant to Section 7.01(b) above,
a written statement by the independent certified public accountants giving the
report thereon stating whether, in connection with their audit examination, any
condition or event that constitutes an Event of Default under Section 8.06
has come to their attention and, if such a condition or event has come to their
attention, specifying the nature thereof, except to the extent that the
delivery of such statement would be prohibited by professional auditing
standards applicable to such matters;

 

(e)           promptly after the transmission thereof by the
Company or any of its Subsidiaries to the SEC, copies of any filings on Form 10-K,
10-Q, or 8-K and any effective registration statements (and, upon the
effectiveness thereof, any material amendments thereto) filed with the SEC (but
not any exhibits to any such registration statement or amendment (except as
provided below) or any registration statement on Form S-8), and copies of
all financial statements, proxy statements, notices and reports that the
Company or any of its Subsidiaries actually sends to the holders of any
publicly-issued securities of the Company or any of its Subsidiaries in their
capacity as such holders (in each case to the extent not theretofore delivered
to Lenders pursuant to this Agreement and in each case including, to the extent
requested by Administrative Agent, any schedules and exhibits thereto), in each
case as so transmitted to the SEC;

 

(f)            promptly upon any Responsible Officer of the Company
obtaining actual knowledge of any condition or event that constitutes a Default
or an Event of Default, a written notice specifying the nature and period of
existence of such condition or event, and what action the Company has taken, is
taking and proposes to take with respect thereto;

 

(g)           promptly upon any Responsible Officer of the Company
obtaining actual knowledge of (i) the institution of any action, suit,
proceeding (whether administrative, judicial or otherwise), governmental
investigation or arbitration against or affecting the Company or any of its
Subsidiaries or any property of the Company or any of its Subsidiaries (collectively,
“Proceedings”) not previously disclosed in writing by the Company to
Lenders or any material development in any Proceeding that, in any such case,
could reasonably be expected to give rise to a Material Adverse Effect, written
notice thereof together with such other information as may be reasonably
available to the Company to enable Lenders and their counsel to evaluate such
matters;

 

(h)           promptly upon any Responsible Officer of the Company
obtaining knowledge of the occurrence or forthcoming occurrence of any ERISA
Event, a written notice specifying the nature thereof and what action the
Company, any of its Subsidiaries or any of their respective ERISA Affiliates
has taken, is taking or proposes to take with respect thereto; promptly upon
receipt thereof, copies of any notice received by the Company, any of its
Subsidiaries or any of their respective ERISA Affiliates from the Internal
Revenue Service, the Department of Labor or the PBGC or from a Multiemployer
Plan sponsor concerning any ERISA Event; concurrently with the delivery of such
notices to the PBGC, to the extent not otherwise delivered to Administrative
Agent under this Agreement, copies of all notices delivered to the PBGC
pursuant to Sections 3.3, 3.4 and 4.4 of the Settlement Agreement, effective as
of May 14, 1997, between Company and the PBGC; promptly upon execution
thereof, copies of all amendments, modifications, waivers or supplements to the
PBGC Agreements;

 

(i)            as soon as practicable and in any event no later
than 60 days after the beginning of each fiscal year, consolidated operating
and related budgets for the Company and its Subsidiaries for each

 

70

 

fiscal
quarter of such fiscal year, in reasonable detail as customarily prepared by
management of the Company for its internal use and setting forth an explanation
of the principal assumptions on which such budgets are based;

 

(j)            promptly upon any Responsible Officer of the Company
obtaining knowledge of any one or more of the following environmental matters
the existence of which, either individually or when aggregated with all other
such matters, would reasonably be expected to result in a Material Adverse
Effect, a written notice specifying in reasonable detail the nature thereof:

 

(i)            any pending or threatened Environmental Claim
against the Company or any of its Subsidiaries or any land, buildings and
improvements owned or leased by the Company or any of its Subsidiaries (but
excluding all operating fixtures and equipment, whether or not incorporated
into improvements) (collectively, “Real Estate”);

 

(ii)           any condition or occurrence that (x) results in
noncompliance by the Company or any of its Subsidiaries with any applicable
Environmental Law or (y) could reasonably be anticipated to form the basis
of an Environmental Claim against the Company or any of its Subsidiaries or any
Real Estate;

 

(iii)          any condition or occurrence on any Real Estate that
could reasonably be anticipated to cause such Real Estate to be subject to any
restrictions on the ownership, occupancy, use or transferability of such Real
Estate under any Environmental Law; or

 

(iv)          the taking of any removal or remedial action in
response to the actual or alleged presence of any Hazardous Material on any
Real Estate;

 

(k)           promptly upon any Responsible Officer of the Company
obtaining actual knowledge thereof, written notice of:

 

(i)            any announcement by Moody’s or S&P of any change
in a Debt Rating;

 

(ii)           any change in accounting policies or financial
reporting practices by the Company or any Subsidiary that has a material impact
on the consolidated financial statements of the Company and its Subsidiaries;

 

(iii)          of any matter that has resulted or could reasonably
be expected to result in a Material Adverse Effect, including (A) breach
or non-performance of, or any default under, a Contractual Obligation of the
Company or any Subsidiary; or (B) any dispute, litigation, investigation,
proceeding or suspension between the Company or any Subsidiary and any
Governmental Authority; and

 

(l)            with reasonable promptness, such other information
and data with respect to the Company or any of its Subsidiaries as from time to
time may be reasonably requested by the Administrative Agent on its own behalf
or on behalf of Required Lenders.

 

Each
notice pursuant to this Section shall be accompanied by a statement of a
Responsible Officer of the Company setting forth details of the occurrence
referred to therein and stating what action the Company has taken and proposes
to take with respect thereto.  Each
notice pursuant to this Section shall describe with particularity any and
all provisions of this Agreement and any other Loan Document that have been
breached.

 

71

 

Documents
required to be delivered pursuant to Section 7.01(a) or (b) or
Section 7.01(e) (to the extent any such documents are included
in materials otherwise filed with the SEC) may be delivered electronically and
if so delivered, shall be deemed to have been delivered on the date (i) on
which the Company posts such documents, or provides a link thereto on the
Company’s website on the Internet at the website address listed on Schedule 11.02;
or (ii) on which such documents are posted on the Company’s behalf on an
Internet or intranet website, if any, to which each Lender and the
Administrative Agent have access (whether a commercial, third-party website or
whether sponsored by the Administrative Agent); provided that: (A) the
Company shall deliver paper copies of such documents to the Administrative
Agent or any Lender upon its request to the Company to deliver such paper
copies until a written request to cease delivering paper copies is given by the
Administrative Agent or such Lender and (B) the Company shall notify the
Administrative Agent and each Lender (by telecopier or electronic mail) of the
posting of any such documents and provide to the Administrative Agent by
electronic mail electronic versions (i.e., soft copies) of such
documents.  The Administrative Agent
shall have no obligation to request the delivery of or to maintain paper copies
of the documents referred to above, and in any event shall have no
responsibility to monitor compliance by the Company with any such request by a
Lender for delivery, and each Lender shall be solely responsible for requesting
delivery to it or maintaining its copies of such documents.

 

Each
Borrower hereby acknowledges that (a) the Administrative Agent and/or BAS
will make available to the Lenders and the L/C Issuer materials and/or
information provided by or on behalf of such Borrower hereunder (collectively, “Borrower
Materials”) by posting the Borrower Materials on IntraLinks or another
similar electronic system (the “Platform”) and (b) certain of the
Lenders may be “public-side” Lenders (i.e., Lenders
that do not wish to receive material non-public information with respect to any
Borrower or its securities) (each, a “Public Lender”).  Each Borrower hereby agrees that (w) all
Borrower Materials that are to be made available to Public Lenders shall be
clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that
the word “PUBLIC” shall appear prominently on the first page thereof; (x) by
marking Borrower Materials “PUBLIC,” the Borrowers shall be deemed to have
authorized the Administrative Agent, BAS, the L/C Issuer and the Lenders to
treat such Borrower Materials as not containing any material non-public
information with respect to the Borrowers or their respective securities for
purposes of United States Federal and state securities laws (provided, however,
that to the extent such Borrower Materials constitute Information, they shall
be treated as set forth in Section 11.07); (y) all Borrower
Materials marked “PUBLIC” are permitted to be made available through a portion
of the Platform designated “Public Investor;” and (z) the Administrative
Agent and BAS shall be entitled to treat any Borrower Materials that are not
marked “PUBLIC” as being suitable only for posting on a portion of the Platform
not designated “Public Investor.”

 

7.02        Preservation of Existence, Etc.

 

Except
as permitted under Section 8.07, the Company will, and will cause
each of its Subsidiaries to, at all times preserve and keep in full force and
effect (i) its legal existence (except, in the case of a Subsidiary of the
Company only, to the extent that failure to do so could not reasonably be
expected to have a Material Adverse Effect) and (ii) all rights and
franchises material to its business (except, in any case, to the extent that
failure to do so could not reasonably be expected to have a Material Adverse
Effect).

 

7.03        Payment of Taxes and Claims; Tax
Consolidation.

 

The
Company will, and will cause each of its Subsidiaries to, pay all material
taxes, assessments and other governmental charges imposed upon it or any of its
properties or assets or in respect of any of its income, businesses or
franchises before any material penalty accrues thereon, and all lawful material
claims (including claims for labor, services, materials and supplies) for sums
that have become due and 

 

72

 

payable
and that by law have become or could reasonably be expected to become a
material Lien upon any of the properties or assets of the Company or any of its
Subsidiaries; provided that no such charge or claim need be paid if it
is being contested in good faith and by proper proceedings, so long as it has
maintained adequate reserves (in the good faith judgment of the Company or such
Subsidiary) with respect thereto in accordance with GAAP.

 

7.04        Maintenance of Properties;
Insurance.

 

(a)           (i) The Company will, and will cause each of
its Subsidiaries to, maintain or cause to be maintained in good repair, working
order and condition, ordinary wear and tear excepted, all material properties
used or useful in the business of the Company and its Subsidiaries (including
all Intellectual Property) and (ii) from time to time will make or cause
to be made all appropriate repairs, renewals and replacements thereof, in each
case except to the extent that failure to do so could not reasonably be
expected to have a Material Adverse Effect.

 

(b)           The Company will, and will cause each of its
Material Subsidiaries to, at all times maintain in full force and effect, with
insurance companies which the Company believes (in the good faith judgment of
the Company’s management) are financially sound and responsible at the time the
relevant coverage is placed or renewed, insurance in at least such amounts and
against at least such risks (and with such risk retentions) as are usually
insured against in the same general area by companies engaged in the same or a
similar business.  The Company shall
furnish to Lenders, upon written request from the Administrative Agent, information
presented in reasonable detail as to the insurance so carried.

 

7.05        Inspection Rights.

 

The
Company shall, and shall cause each of its Material Subsidiaries to, permit any
authorized representatives designated by the Administrative Agent or Required
Lenders to visit and inspect any of the properties of the Company or of any of
its Material Subsidiaries, to inspect, copy and make abstracts from its and
their financial and accounting records, and to discuss its and their affairs,
finances and accounts with its and their officers and independent public
accountants (provided that the Company may, if it so chooses, be present at or
participate in any such discussion), all upon reasonable notice and at such
reasonable times during normal business hours and as often as may reasonably be
requested.

 

7.06        Compliance with Laws.

 

The
Company shall comply, and shall cause each of its Subsidiaries to comply, in
all material respects, with the requirements of all applicable Laws, rules,
regulations and orders (including all Environmental Laws) of any governmental
authority having jurisdiction over it, except such as may be contested in good
faith or as to which a bona fide dispute may exist and except to the extent
that noncompliance therewith could not reasonably be expected to cause,
individually or in the aggregate, a Material Adverse Effect.

 

7.07        Additional Subsidiary Guarantors.

 

In
the event that any Person (other than a Restricted Acquisition Subsidiary)
becomes a Domestic Subsidiary that is a Material Subsidiary after the Closing
Date, the Company will promptly notify the Administrative Agent of that fact
and cause such Material Subsidiary to promptly thereafter (and in any event
with 30 days) (a) execute and deliver to the Administrative Agent a
Joinder Agreement and (b) deliver to the Administrative Agent documents of
the types referred to in clauses (ii), (iii) and (iv) of Section 5.01(a) and
favorable opinions of counsel to such Person (which shall cover, among other
things, 

 

73

 

the
legality, validity, binding effect and enforceability of the documentation
referred to in clause (a)), all in form, content and scope reasonably
satisfactory to the Administrative Agent.

 

7.08        Transactions with Affiliates.

 

The
Company shall, and shall cause each of its Subsidiaries to, conduct all
transactions with any of its Affiliates (other than the Company or any of its
Subsidiaries) upon terms that are substantially as favorable to Company or such
Subsidiary as it would obtain in a comparable arm’s-length transaction with a
Person not an Affiliate of the Company or such Subsidiary; provided that
the foregoing restrictions shall not apply to (a) reasonable and customary
fees paid to members of the board of directors of the Company and its
Subsidiaries, (b) transactions otherwise expressly permitted hereunder
between the Company or any of its Subsidiaries and any such Affiliate, and
(c) transactions between the Company or any of its Subsidiaries and any
special purpose entity established in connection with an Accounts Receivable
Facility.

 

7.09        Conduct of Business.

 

From
and after the Closing Date, the Company shall, and shall cause its Subsidiaries
(taken as a whole) to, engage primarily in (i) the lines of business
carried on by the Company and its Subsidiaries on the Closing Date and (ii) other
businesses or activities that are reasonably similar thereto or that constitute
a reasonable extension, development or expansion thereof or that are ancillary
or reasonably related thereto.

 

7.10        Fiscal Year.

 

The
Company shall maintain its fiscal year-end at December 31 of each year; provided
that the Company may, upon prior written notice to the Administrative Agent,
change such fiscal year-end.

 

7.11        Use of Proceeds.

 

The
Borrowers shall use the proceeds of the Credit Extensions to refinance existing
indebtedness and for general corporate purposes not in contravention of any Law
or of any Loan Document.

 

ARTICLE VIII

NEGATIVE COVENANTS

 

The
Company covenants and agrees that, so long as any of the Commitments hereunder
shall remain in effect and until payment in full of all of the Loans and other
Obligations and the cancellation or expiration of all Letters of Credit, unless
Required Lenders shall otherwise give prior written consent, the Company shall
perform, and shall cause each of its Subsidiaries to perform, all covenants in
this Article VIII.

 

8.01        Indebtedness.

 

The Company shall not, and shall not permit any of its Subsidiaries to,
directly or indirectly, create, incur, assume or guaranty, or otherwise become
or remain directly or indirectly liable with respect to, any Indebtedness,
except:

 

(a)           Each Loan Party may become and remain liable with
respect to the Obligations;

 

74

 

(b)           the Company and its Subsidiaries may become and
remain liable with respect to Indebtedness in respect of Capital Leases in an
aggregate amount not to exceed at any time $50,000,000;

 

(c)           the Company and its Subsidiaries may become and
remain liable with respect to (i) purchase money Indebtedness and (ii) non-recourse
Indebtedness and obligations of the Company and its Subsidiaries in connection
with any Accounts Receivable Facility, collectively in an aggregate outstanding
principal amount not to exceed $100,000,000 at any time;

 

(d)           the Foreign Subsidiaries of the Borrower may become
and remain liable with respect to Indebtedness in an aggregate outstanding
principal amount not to exceed $250,000,000 at any time; and

 

(e)           any other Indebtedness of the Company and its
Subsidiaries, provided that, the incurrence of any such Indebtedness is not
prohibited by Section 8.03.

 

8.02        Liens.

 

The
Company shall not, and shall not permit any of its Subsidiaries to, directly or
indirectly, create, incur, assume or permit to exist any Lien on or with
respect to any property or asset of any kind (including any document or
instrument in respect of goods or accounts receivable) of the Company or any of
its Subsidiaries, whether now owned or hereafter acquired, except:

 

(a)           Permitted Encumbrances;

 

(b)           Liens granted to secure Indebtedness in respect of
Capital Leases permitted under Section 8.01(b);

 

(c)           Liens granted to secure (i) purchase money
Indebtedness and (ii) Indebtedness in connection with any Accounts
Receivable Facility, in each case as permitted under Section 8.01(c);

 

(d)           Liens granted to secure Indebtedness of the Foreign
Subsidiaries of the Borrower in an aggregate outstanding principal amount not
to exceed $250,000,000 at any time; and

 

(e)           other Liens securing any Indebtedness of the Company
and its Subsidiaries that is not prohibited by Section 8.03.

 

8.03        Priority Indebtedness.

 

The
Company shall not permit the aggregate amount of all Priority Indebtedness at
any time to exceed 15% of Consolidated Net Tangible Assets.

 

8.04        Investments; Joint Ventures.

 

The
Company shall not, and shall not permit any of its Subsidiaries to, directly or
indirectly, make or own any Investment in any Person, including any Joint
Venture, except:

 

(a)           the Company and its Subsidiaries may make and own
Investments in Cash Equivalents;

 

75

 

(b)           the Company and its Subsidiaries may make loans and
advances to officers, directors and employees of the Company or any of its
Subsidiaries (i) to finance the purchase of capital stock of the Company
and (ii) in an aggregate principal amount not to exceed $5,000,000 at any
time outstanding for additional purposes not contemplated by the foregoing
clause (i);

 

(c)           Permitted Acquisitions;

 

(d)           the Company and its Subsidiaries may make and own
Investments consisting of any non-cash proceeds received by the Company or any
of its Subsidiaries in connection with any Asset Sale permitted under Section 8.07(e);

 

(e)           the Company and its Subsidiaries may continue to own
the Investments owned by them and described in Schedule 8.04
annexed hereto and the Company and its Subsidiaries may make and own
Investments purchased with the proceeds of the sale of any Investments
permitted under this Section 8.04(e);

 

(f)            the Company and its Subsidiaries may make and own
Investments in special purpose entities established to purchase accounts
receivable from the Company or any of its Subsidiaries pursuant to an Accounts
Receivable Facility permitted pursuant to Section 8.01(c)(ii); and

 

(g)           the Company and its Subsidiaries may make and own
Investments in addition to those permitted under clauses (a) through (f) above,
in an aggregate amount at any time not to exceed $100,000,000.

 

8.05        Restricted Payments.

 

The
Company shall not, and shall not permit any of its Subsidiaries to, directly or
indirectly, declare, order, pay, make or set apart any sum for any Restricted
Payment except that, so long as no Default or Event of Default has occurred and
is continuing at the time of any action described below or would be caused
thereby, the Company may:

 

(a)           repurchase shares of its capital stock (together
with options or warrants in respect of any thereof) held by officers, directors
and employees of the Company so long as such repurchase is pursuant to, and in
accordance with the terms of, management and/or employee stock plans, stock subscription
agreements or shareholder agreements;

 

(b)           purchase, redeem or otherwise acquire shares of
common stock of the Company or warrants or options to acquire any such shares
with proceeds received by the Company from the substantially concurrent equity
contributions or issuances of new shares of its common stock;

 

(c)           redeem or exchange, in whole or in part, any capital
stock of the Company for shares of another class of capital stock of the
Company or rights to acquire shares of such other class of capital stock; provided
that such other class of capital stock contains terms and provisions (taken as
a whole, and taking into account the relative amounts of the shares of each
class of capital stock involved in such redemption or exchange) that are at least
as advantageous to Lenders as those contained in the capital stock redeemed or
exchanged therefor; and

 

(d)           make other Restricted Payments; provided that
(i) no Default or Event of Default exists prior to and after giving effect
to such Restricted Payment and (ii) after giving effect to any 

 

76

 

such
Restricted Payment on a Pro Forma Basis, the Consolidated Leverage Ratio is not
greater than 2.75 to 1.0.

 

8.06        Financial Covenants.

 

(a)           Consolidated Interest Coverage Ratio.  The Company shall not permit the Consolidated
Interest Coverage Ratio as of the end of any fiscal quarter of the Company to
be less than 3.0 to 1.0

 

(b)           Consolidated Leverage Ratio.  The Company shall not permit the Consolidated
Leverage Ratio as of the end of any fiscal quarter of the Company to be greater
than 3.25 to 1.0.

 

All
calculations of financial covenants in this Section 8.06 (including
for purposes of determining the Applicable Rate) shall be made on a Pro Forma
Basis.

 

8.07        Fundamental Changes; Asset Sales.

 

The
Company shall not, and shall not permit any of its Subsidiaries to, enter into
any transaction of merger or consolidation, or liquidate, wind up or dissolve
itself (or suffer any liquidation or dissolution), or convey, sell, lease or
sub-lease (as lessor or sublessor), transfer or otherwise dispose of, in one
transaction or a series of transactions, all or any part of its business,
property or assets, whether now owned or hereafter acquired, except:

 

(a)           any Subsidiary of the Company may be merged with or
into the Company or any other Subsidiary of the Company, and any Subsidiary of
the Company may be liquidated, wound up or dissolved, or all or any part of its
business, property or assets (including capital stock of any Subsidiary of the
Company) may be conveyed, sold, leased, transferred or otherwise disposed of,
in one transaction or a series of transactions, to the Company or any other
Subsidiary of the Company; provided that in the case of any such merger
involving the Company, the Company shall be the continuing or surviving
corporation;

 

(b)           the Company or any Subsidiary may merge or
consolidate with any Person in connection with a Permitted Acquisition; provided
that in the case of any such merger involving the Company, the Company shall be
the continuing or surviving corporation;

 

(c)           the Company and its Subsidiaries may dispose of
obsolete, worn out or surplus property in the ordinary course of business and
sell or discount without recourse accounts receivable arising in the ordinary
course of business in connection with the compromise or collection thereof;

 

(d)           the Company and its Subsidiaries may sell or
otherwise dispose of other assets in transactions that do not constitute Asset
Sales; and

 

(e)           the Company and its Subsidiaries may make Asset
Sales; provided that the Loan Parties shall not be permitted to sell all
or substantially all of their assets taken as a whole.

 

8.08        Amendment of Certain Documents.

 

(a)           The Company shall not amend, modify or change, nor
shall it permit any Loan Party to amend, modify or change, its Organizational
Documents in any manner which could adversely affect the rights of the
Administrative Agent or the Lenders.

 

77

 

(b)           The Company shall not, and shall not permit any of
its Subsidiaries to, amend or otherwise change any of the terms of the PBGC
Agreements in any manner with respect to the granting, continuation or
termination of Liens on any of the assets of the Company or its Subsidiaries or
the priority of the PBGC or the Lenders with respect to any such Liens.

 

ARTICLE IX

EVENTS OF DEFAULT AND REMEDIES

 

9.01        Events of Default.

 

Any
of the following shall constitute an Event of Default:

 

(a)           Non-Payment.  (i) Failure by any Borrower to pay any
installment of principal of any Loan in the currency required hereunder when
due from such Borrower, whether at stated maturity, by acceleration, by
mandatory prepayment or otherwise or failure by any Borrower to pay when due
any L/C Obligation; or (ii) within five days after the date due, failure
by any Borrower to pay any interest on any Loan or on any  L/C Obligation; or (iii) failure by any
Loan Party to pay any fee or any other amount due from such Loan Party under
this Agreement or under any other Loan Document within five days after the date
due; or

 

(b)           Cross-Default.  (i) Failure of the Company or any of its
Subsidiaries to pay when due any principal of or interest on or any other
amount payable in respect of one or more items of Indebtedness (other than
Indebtedness referred to in subsection (a) above) with an aggregate
principal amount of $30,000,000 or more beyond the end of any grace or notice
period provided therefor; or (ii) breach or default by the Company or any
of its Subsidiaries with respect to any other material term of (A) one or
more items of Indebtedness in the aggregate principal amount of $30,000,000 or
(B) any loan agreement, mortgage, indenture or other agreement relating to
such item(s) of Indebtedness, if such breach or default continues after
any applicable grace or notice period provided therefor and the effect of such
breach or default is to cause, or to permit the holder or holders of that
Indebtedness (or a trustee on behalf of such holder or holders) to cause, that
Indebtedness to become or be declared due and payable prior to its stated
maturity or the stated maturity of any underlying obligation, as the case may
be; or

 

(c)           Specific Covenants.  Any Loan Party fails to perform or observe
any term, covenant or agreement contained in any of Section 7.01(f) or
Article VIII; or

 

(d)           Representations and Warranties.  Any representation, warranty, certification
or other statement made by the Company or any of its Subsidiaries in any Loan
Document or in any statement or certificate at any time given by the Company or
any of its Subsidiaries in writing pursuant hereto or thereto or in connection
herewith or therewith shall be false in any material respect on the date as of
which made; or

 

(e)           Other Defaults.  Any Loan Party shall default in the
performance of or compliance with any term contained in this Agreement or any
of the other Loan Documents, other than any such term referred to in any other
subsection of this Article IX, and such default shall not have been
remedied or waived within 30 days after receipt by the Company of notice from
Administrative Agent or any Lender of such default; or

 

(f)            Involuntary Bankruptcy; Appointment of
Receiver, Etc.  (i) A
court having jurisdiction in the premises shall enter a decree or order for
relief in respect of the Company or 

 

78

 

any
of its Material Subsidiaries in an involuntary case under any Debtor Relief
Law, which decree or order is not stayed; or any other similar relief shall be
granted under any applicable federal, state or foreign law; or (ii) an
involuntary case shall be commenced against the Company or any of its Material
Subsidiaries under any Debtor Relied Law; or a decree or order of a court
having jurisdiction in the premises for the appointment of a receiver,
liquidator, sequestrator, trustee, custodian or other officer having similar
powers over the Company or any of its Material Subsidiaries, or over all or a
substantial part of its property, shall have been entered; or there shall have
occurred the involuntary appointment of an interim receiver, trustee or other
custodian of the Company or any of its Material Subsidiaries for all or a
substantial part of its property; or a warrant of attachment, execution or
similar process shall have been issued against any substantial part of the
property of the Company or any of its Material Subsidiaries, and any such event
described in this clause (ii) shall continue for 60 days unless dismissed
or discharged; or

 

(g)           Voluntary Bankruptcy; Appointment of Receiver, Etc.  (i) The Company or any of its
Material Subsidiaries shall have an order for relief entered with respect to it
or commence a voluntary case under any Debtor Relief Law, or shall consent to
the entry of an order for relief in an involuntary case, or to the conversion
of an involuntary case to a voluntary case, under any such law, or shall
consent to the appointment of or taking possession by a receiver, trustee or
other custodian for all or a substantial part of its property; or the Company
or any of its Material Subsidiaries shall make any assignment for the benefit
of creditors; or (ii) the Company or any of its Material Subsidiaries
shall fail generally, or shall admit in writing its inability, to pay its debts
as such debts become due; or the board of directors of the Company or any of
its Material Subsidiaries (or any committee thereof) shall adopt any resolution
or otherwise authorize any action to approve any of the actions referred to in
clause (i) above or this clause (ii); or

 

(h)           Judgments and Attachments.  Any money judgments, writs or warrants of
attachment or similar processes involving in the aggregate at any time an
amount in excess of $30,000,000 (to the extent such amount is not adequately
covered by insurance as to which the insurance company has not disputed
coverage in writing) shall be entered or filed against the Company or any of
its Subsidiaries or any of their respective assets and shall remain
undischarged, unvacated or unstayed for a period of 60 days; or

 

(i)            ERISA.  An ERISA Event shall occur with respect to a
Pension Plan or Multiemployer Plan; or

 

(j)            Change of Control.  There occurs any Change of Control; or

 

(k)           Invalidity of Loan Documents.  At any time after the execution and delivery
thereof, (i) any material provision of any Loan Document, at any time
after its execution and delivery and for any reason other than as expressly
permitted hereunder or satisfaction in full of all the Obligations, ceases to
be in full force and effect; or (ii) any Loan Party shall deny in writing
its obligations under any Loan Document to which it is a party.

 

9.02        Remedies Upon Event of Default.

 

If
any Event of Default occurs and is continuing, the Administrative Agent shall,
at the request of, or may, with the consent of, the Required Lenders, take any
or all of the following actions:

 

(a)           declare the commitment of each Lender to make Loans
and any obligation of the L/C Issuer to make L/C Credit Extensions to be
terminated, whereupon such commitments and obligation shall be terminated;

 

79

 

(b)           declare the unpaid principal amount of all
outstanding Loans, all interest accrued and unpaid thereon, and all other
amounts owing or payable hereunder or under any other Loan Document to be
immediately due and payable, without presentment, demand, protest or other
notice of any kind, all of which are hereby expressly waived by the Borrowers;

 

(c)           require that the Company Cash Collateralize the L/C
Obligations (in an amount equal to the then Outstanding Amount thereof); and

 

(d)           exercise on behalf of itself and the Lenders all
rights and remedies available to it and the Lenders under the Loan Documents;

 

provided, however,
that upon the occurrence of an Event of Default under Section 9.01(f) or
(g) or an actual or deemed entry of an order for relief with
respect to any Borrower under the Debtor Relief Laws, the obligation of each
Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit
Extensions shall automatically terminate, the unpaid principal amount of all
outstanding Loans and all interest and other amounts as aforesaid shall
automatically become due and payable, and the obligation of the Company to Cash
Collateralize the L/C Obligations as aforesaid shall automatically become
effective, in each case without further act of the Administrative Agent or any
Lender.

 

9.03        Application of Funds.

 

After
the exercise of remedies provided for in Section 9.02 (or after the
Loans have automatically become immediately due and payable and the L/C
Obligations have automatically been required to be Cash Collateralized as set
forth in the proviso to Section 9.02), any amounts received on
account of the Obligations shall be applied by the Administrative Agent in the
following order:

 

First, to payment of
that portion of the Obligations constituting fees, indemnities, expenses and
other amounts (including fees, charges and disbursements of counsel to the
Administrative Agent and amounts payable under Article III) payable
to the Administrative Agent in its capacity as such;

 

Second, to payment of
that portion of the Obligations constituting fees, indemnities and other
amounts (other than principal, interest and Letter of Credit Fees) payable to
the Lenders and the L/C Issuer (including 
fees, charges and disbursements of counsel to the respective Lenders and
the L/C Issuer and amounts payable under Article III), ratably
among them in proportion to the respective amounts described in this clause Second
payable to them;

 

Third, to payment of
that portion of the Obligations constituting accrued and unpaid Letter of
Credit Fees and interest on the Loans, L/C Borrowings and other Obligations,
ratably among the Lenders and the L/C Issuer in proportion to the respective
amounts described in this clause Third payable to them;

 

Fourth, to payment of
that portion of the Obligations constituting unpaid principal of the Loans and
L/C Borrowings, ratably among the Lenders and the L/C Issuer in proportion to
the respective amounts described in this clause Fourth held by them;

 

Fifth, to the
Administrative Agent for the account of the L/C Issuer, to Cash Collateralize
that portion of L/C Obligations comprised of the aggregate undrawn amount of
Letters of Credit; and

 

Last, the balance,
if any, after all of the Obligations have been indefeasibly paid in full, to
the Company or as otherwise required by Law.

 

80

 

Subject
to Sections 2.03(c) and 2.15, amounts used to Cash
Collateralize the aggregate undrawn amount of Letters of Credit pursuant to
clause Fifth above shall be applied to satisfy drawings under such
Letters of Credit as they occur.  If any
amount remains on deposit as Cash Collateral after all Letters of Credit have
either been fully drawn or expired, such remaining amount shall be applied to
the other Obligations, if any, in the order set forth above.

 

ARTICLE X

ADMINISTRATIVE AGENT

 

10.01      Appointment and Authority.

 

Each
of the Lenders and the L/C Issuer hereby irrevocably appoints Bank of America
to act on its behalf as the Administrative Agent hereunder and under the other
Loan Documents and authorizes the Administrative Agent to take such actions on
its behalf and to exercise such powers as are delegated to the Administrative
Agent by the terms hereof or thereof, together with such actions and powers as
are reasonably incidental thereto.  The
provisions of this Article are solely for the benefit of the
Administrative Agent, the Lenders and the L/C Issuer, and neither any Borrower
nor any other Loan Party shall have rights as a third party beneficiary of any
of such provisions.

 

10.02      Rights as a Lender.

 

The
Person serving as the Administrative 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 the Administrative Agent and the term “Lender” or “Lenders”
shall, unless otherwise expressly indicated or unless the context otherwise
requires, include the Person serving as the Administrative Agent hereunder in
its individual capacity.  Such Person and
its Affiliates may accept deposits from, lend money to, act as the financial
advisor or in any other advisory capacity for and generally engage in any kind
of business with the Borrowers or any Subsidiary or other Affiliate thereof as
if such Person were not the Administrative Agent hereunder and without any duty
to account therefor to the Lenders.

 

10.03      Exculpatory Provisions.

 

The
Administrative Agent shall not have any duties or obligations except those
expressly set forth herein and in the other Loan Documents.  Without limiting the generality of the
foregoing, the Administrative Agent:

 

(a)           shall not be subject to any fiduciary or other
implied duties, regardless of whether a Default has occurred and is continuing;

 

(b)           shall not have any duty to take any discretionary
action or exercise any discretionary powers, except discretionary rights and
powers expressly contemplated hereby or by the other Loan Documents that the
Administrative Agent is required to exercise as directed in writing by the
Required Lenders (or such other number or percentage of the Lenders as shall be
expressly provided for herein or in the other Loan Documents), provided
that the Administrative Agent shall not be required to take any action that, in
its opinion or the opinion of its counsel, may expose the Administrative Agent
to liability or that is contrary to any Loan Document or applicable law; and

 

(c)           shall not, except as expressly set forth herein and
in the other Loan Documents, have any duty to disclose, and shall not be liable
for the failure to disclose, any information relating to any of the Borrowers
or any of their respective Affiliates that is communicated to or 

 

81

 

obtained
by the Person serving as the Administrative Agent or any of its Affiliates in
any capacity.

 

The
Administrative Agent shall not be liable for any action taken or not taken by
it (i) with the consent or at the request of the Required Lenders (or such
other number or percentage of the Lenders as shall be necessary, or as the
Administrative Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Sections 11.01 and 9.02) or (ii) in
the absence of its own gross negligence or willful misconduct.  The Administrative Agent shall be deemed not
to have knowledge of any Default unless and until notice describing such
Default is given to the Administrative Agent by the Company, a Lender or the
L/C Issuer.

 

The
Administrative Agent shall not be responsible for or have any duty to ascertain
or inquire into (i) any statement, warranty or representation made in or
in connection with this Agreement or any other Loan Document, (ii) the
contents of any certificate, report or other document delivered hereunder or
thereunder or in connection herewith or therewith, (iii) the performance
or observance of any of the covenants, agreements or other terms or conditions
set forth herein or therein or the occurrence of any Default, (iv) the validity,
enforceability, effectiveness or genuineness of this Agreement, any other Loan
Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Article V or elsewhere
herein, other than to confirm receipt of items expressly required to be
delivered to the Administrative Agent.

 

10.04      Reliance by Administrative Agent.

 

The
Administrative 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 (including any electronic
message, Internet or intranet website posting or other distribution)
believed by it to be genuine and to have been signed, sent or otherwise
authenticated by the proper Person.  The
Administrative Agent also may 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. 
In determining compliance with any condition hereunder to the making of
a Loan, or the issuance of a Letter of Credit, that by its terms must be
fulfilled to the satisfaction of a Lender or the L/C Issuer, the Administrative
Agent may presume that such condition is satisfactory to such Lender or the L/C
Issuer unless the Administrative Agent shall have received notice to the
contrary from such Lender or the L/C Issuer prior to the making of such Loan or
the issuance of such Letter of Credit. 
The Administrative Agent may consult with legal counsel (who may be
counsel for the Company), independent accountants and other experts selected by
it, and shall not be liable for any action taken or not taken by it in
accordance with the advice of any such counsel, accountants or experts.

 

10.05      Delegation of Duties.

 

The
Administrative Agent may perform any and all of its duties and exercise its
rights and powers hereunder or under any other Loan Document by or through any
one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such
sub-agent may perform any and all of its duties and exercise its rights and
powers by or through their respective Related Parties.  The exculpatory provisions of this
Article shall apply to any such sub-agent and to the Related Parties of
the Administrative 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 Administrative Agent.

 

82

 

10.06      Resignation of Administrative
Agent.

 

The
Administrative Agent may at any time give notice of its resignation to the
Lenders, the L/C Issuer and the Company. 
Upon receipt of any such notice of resignation, the Required Lenders shall
have the right, with the consent of the Company (not to be unreasonably
withheld), unless an Event of Default shall have occurred and is continuing, in
which case the consent of the Company shall not be required, to appoint a
successor, which shall be a bank with an office in the United States, or an
Affiliate of any such bank with an office in the United States.  If no such successor shall have been so
appointed by the Required Lenders and shall have accepted such appointment
within 30 days after the retiring Administrative Agent gives notice of its
resignation, then the retiring Administrative Agent may on behalf of the
Lenders and the L/C Issuer, appoint a successor Administrative Agent meeting
the qualifications set forth above subject to the consent of the Company (not
to be unreasonably withheld), unless an Event of Default shall have occurred
and is continuing, in which case the consent of the Company shall not be
required; provided that if the Administrative Agent shall notify the
Company and the Lenders that no qualifying Person has accepted such appointment
or has been approved by the Company and the Lenders, then such resignation
shall nonetheless become effective in accordance with such notice and (1) the
retiring Administrative Agent shall be discharged from its duties and
obligations hereunder and under the other Loan Documents and (2) all
payments, communications and determinations provided to be made by, to or
through the Administrative Agent shall instead be made by or to each Lender and
the L/C Issuer directly, until such time as the Required Lenders appoint a
successor Administrative Agent as provided for above in this Section.  Upon the acceptance of a successor’s
appointment as Administrative Agent hereunder, such successor shall succeed to
and become vested with all of the rights, powers, privileges and duties of the
retiring (or retired) Administrative Agent, and the retiring Administrative
Agent shall be discharged from all of its duties and obligations hereunder or
under the other Loan Documents (if not already discharged therefrom as provided
above in this Section).  The fees payable
by the Company to a successor Administrative Agent shall be the same as those
payable to its predecessor unless otherwise agreed between the Company and such
successor.  After the retiring
Administrative Agent’s resignation hereunder and under the other Loan
Documents, the provisions of this Article and Section 11.04
shall continue in effect for the benefit of such retiring Administrative 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 the retiring Administrative
Agent was acting as Administrative Agent.

 

Any
resignation by Bank of America as Administrative Agent pursuant to this
Section shall also constitute its resignation as L/C Issuer and Swing Line
Lender.  Upon the acceptance of a
successor’s appointment as Administrative Agent hereunder, (a) such
successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring L/C Issuer and Swing Line Lender, (b) the
retiring L/C Issuer and Swing Line Lender shall be discharged from all of their
respective duties and obligations hereunder or under the other Loan Documents,
and (c) the successor L/C Issuer shall issue letters of credit in
substitution for the Letters of Credit, if any, outstanding at the time of such
succession or make other arrangements satisfactory to the retiring L/C Issuer
to effectively assume the obligations of the retiring L/C Issuer with respect
to such Letters of Credit.

 

10.07      Non-Reliance on Administrative
Agent and Other Lenders.

 

Each
Lender and the L/C Issuer acknowledges that it has, independently and without
reliance upon the Administrative Agent or any other Lender or any of their
Related Parties 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 and the L/C
Issuer also acknowledges that it will, independently and without reliance upon
the Administrative Agent or any other Lender or any of their Related Parties
and based on such documents and information as it shall from time to time deem
appropriate, continue to 

 

83

 

make
its own decisions in taking or not taking action under or based upon this
Agreement, any other Loan Document or any related agreement or any document
furnished hereunder or thereunder.

 

10.08      No Other Duties, Etc.

 

Anything
herein to the contrary notwithstanding, none of the Joint Book Runners, the
Joint Lead Arrangers, Syndication Agent or Co-Documentation Agents listed on
the cover page hereof shall have any powers, duties or responsibilities
under this Agreement or any of the other Loan Documents, except in its
capacity, as applicable, as the Administrative Agent, a Lender or the L/C
Issuer hereunder.

 

10.09      Administrative Agent
May File Proofs of Claim.

 

In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to any Loan Party, the Administrative Agent (irrespective
of whether the principal of any Loan or L/C Obligation shall then be due and
payable as herein expressed or by declaration or otherwise and irrespective of
whether the Administrative Agent shall have made any demand on any Borrower)
shall be entitled and empowered, by intervention in such proceeding or
otherwise

 

(a)           to file and prove a claim for the whole amount of
the principal and interest owing and unpaid in respect of the Loans, L/C
Obligations and all other Obligations that are owing and unpaid and to file
such other documents as may be necessary or advisable in order to have the
claims of the Lenders, the L/C Issuer and the Administrative Agent (including
any claim for the reasonable compensation, expenses, disbursements and advances
of the Lenders, the L/C Issuer and the Administrative Agent and their
respective agents and counsel and all other amounts due the Lenders, the L/C
Issuer and the Administrative Agent under Sections 2.03(i) and
(j), 2.09 and 11.04) allowed in such judicial proceeding;
and

 

(b)           to collect and receive any monies or other property
payable or deliverable on any such claims and to distribute the same;

 

and
any custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Lender and the L/C Issuer to make such payments to the Administrative Agent
and, in the event that the Administrative Agent shall consent to the making of
such payments directly to the Lenders and the L/C Issuer, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Administrative Agent and its agents and
counsel, and any other amounts due the Administrative Agent under Sections 2.09
and 11.04.

 

Nothing
contained herein shall be deemed to authorize the Administrative Agent to
authorize or consent to or accept or adopt on behalf of any Lender or the L/C
Issuer any plan of reorganization, arrangement, adjustment or composition
affecting the Obligations or the rights of any Lender or to authorize the
Administrative Agent to vote in respect of the claim of any Lender in any such
proceeding.

 

10.10      Guaranty Matters.

 

The
Lenders and the L/C Issuer irrevocably authorize the Administrative Agent, at
its option and in its discretion, to release any Subsidiary Guarantor from its
obligations under the Guaranty if such Person ceases to be a Subsidiary as a
result of a transaction permitted hereunder.

 

84

 

ARTICLE XI

MISCELLANEOUS

 

11.01      Amendments, Etc.

 

No
amendment or waiver of any provision of this Agreement or any other Loan
Document, and no consent to any departure by the Company or any other Loan
Party therefrom, shall be effective unless in writing signed by the Required
Lenders and the Company or the applicable Loan Party, as the case may be, and
acknowledged by the Administrative Agent, and each such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given; provided, however, that no such amendment, waiver or
consent shall:

 

(a)           extend or increase the Commitment of any Lender (or
reinstate any Commitment terminated pursuant to Section 9.02)
without the written consent of such Lender;

 

(b)           postpone any date fixed by this Agreement or any
other Loan Document for any payment of principal, interest, fees or other amounts
due to the Lenders (or any of them) hereunder or under any other Loan Document
without the written consent of each Lender directly affected thereby;

 

(c)           reduce the principal of, or the rate of interest
specified herein on, any Loan or L/C Borrowing, or (subject to clause (iv) of
the second proviso to this Section 11.01) any fees or other amounts
payable hereunder or under any other Loan Document without the written consent
of each Lender directly affected thereby; provided, however, that
only the consent of the Required Lenders shall be necessary to amend the
definition of “Default Rate” or to waive any obligation of any Borrower to pay
interest or Letter of Credit Fees at the Default Rate;

 

(d)           change Section 2.13 or Section 9.03
in a manner that would alter the pro rata sharing of payments and Credit
Extensions required thereby in a manner adverse to any Lender without the
written consent of such Lender;

 

(e)           amend Section 1.05(a),  Section 1.06
or the definition of “Alternative Currency” without the written consent of each
Lender;

 

(f)            change any provision of this Section or the
definition of “Required Lenders” or any other provision hereof specifying the
number or percentage of Lenders required to amend, waive or otherwise modify
any rights hereunder or make any determination or grant any consent hereunder
without the written consent of each Lender; or

 

(g)           release the Company or any Designated Borrower or
all or substantially all of the Subsidiary Guarantors, from its or their
obligations under the Loan Documents without the written consent of each Lender
directly affected thereby;

 

and,
provided  further, that (i) no amendment, waiver or consent
shall, unless in writing and signed by the L/C Issuer in addition to the
Lenders required above, affect the rights or duties of the L/C Issuer under
this Agreement or any Issuer Document relating to any Letter of Credit issued
or to be issued by it; (ii) no amendment, waiver or consent shall, unless
in writing and signed by the Swing Line Lender in addition to the Lenders
required above, affect the rights or duties of the Swing Line Lender under this
Agreement; (iii) no amendment, waiver or consent shall, unless in writing and
signed by the Administrative Agent in addition to the Lenders required above,
affect the rights or duties of the Administrative Agent under this 

 

85

 

Agreement
or any other Loan Document and (iv) the Fee Letter may be amended, or
rights or privileges thereunder waived, in a writing executed only by the
parties thereto.  Notwithstanding
anything to the contrary herein, no Defaulting Lender shall have any right to
approve or disapprove any amendment, waiver or consent hereunder, except that (x) the
Commitment of any Defaulting Lender may not be increased or extended without
the consent of such Lender and (y) any waiver, amendment or modification
requiring the consent of all Lenders or each affected Lender that by its terms
affects any Defaulting Lender more adversely than other affected Lenders shall
require the consent of such Defaulting Lender.

 

11.02      Notices; Effectiveness;
Electronic Communication.

 

(a)           Notices Generally.  Except in the case of notices and other
communications expressly permitted to be given by telephone (and except as
provided in subsection (b) below), all 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 telecopier as follows, and all notices and other communications
expressly permitted hereunder to be given by telephone shall be made to the
applicable telephone number, as follows:

 

(i)            if to the Borrowers, the Administrative Agent, the
L/C Issuer or the Swing Line Lender, to the address, telecopier number,
electronic mail address or telephone number specified for such Person on Schedule 11.02;
and

 

(ii)           if to any other Lender, to the address, telecopier
number, electronic mail address or telephone number specified in its
Administrative Questionnaire (including, as appropriate, notices delivered
solely to the Person designated by a Lender on its Administrative Questionnaire
then in effect for the delivery of notices that may contain material non-public
information relating to the Company).

 

Notices
sent by hand or overnight courier service, or mailed by certified or registered
mail, shall be deemed to have been given when received; notices sent by
telecopier shall be deemed to have been given when sent (except that, if not
given during normal business hours for the recipient, shall be deemed to have
been given at the opening of business on the next business day for the
recipient).  Notices delivered through
electronic communications to the extent provided in subsection (b) below,
shall be effective as provided in such subsection (b).

 

(b)           Electronic Communications.  Notices and other communications to the
Lenders and the L/C Issuer hereunder may be delivered or furnished by
electronic communication (including e-mail and Internet or intranet websites)
pursuant to procedures approved by the Administrative Agent, provided
that the foregoing shall not apply to notices to any Lender or the L/C Issuer
pursuant to Article II if such Lender or the L/C Issuer, as
applicable, has notified the Administrative Agent that it is incapable of
receiving notices under such Article by electronic communication.  The Administrative Agent or the Company may,
in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it, provided
that approval of such procedures may be limited to particular notices or
communications.

 

Unless
the Administrative Agent otherwise prescribes, (i) notices and other
communications from the Administrative Agent to the Lenders and the L/C Issuer
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 such notice or other communication is
not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on
the next business day for the recipient, and (ii) notices or
communications posted to an Internet or intranet 

 

86

 

website
shall be deemed received upon the deemed receipt by the intended recipient at
its e-mail address as described in the foregoing clause (i) of
notification that such notice or communication is available and identifying the
website address therefor.

 

(c)           The Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS
AVAILABLE.”  THE AGENT PARTIES (AS
DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER
MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR
ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED
OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM
VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION
WITH THE BORROWER MATERIALS OR THE PLATFORM. 
In no event shall the Administrative Agent or any of its Related Parties
(collectively, the “Agent Parties”) have any liability to any Borrower,
any Lender, the L/C Issuer or any other Person for losses, claims, damages,
liabilities or expenses of any kind (whether in tort, contract or otherwise)
arising out of any Borrower’s or the Administrative Agent’s transmission of the
items delivered by any Borrower to the Administrative Agent pursuant to Sections
7.01, 7.02 or 7.03 or any other materials and/or information
at the request of any Borrower through the Internet, except to the extent that
such losses, claims, damages, liabilities or expenses result from the gross
negligence or willful misconduct of such Agent Party; provided, however,
that in no event shall any Agent Party have any liability to any Borrower, any
Lender, the L/C Issuer or any other Person for indirect, special, incidental,
consequential or punitive damages (as opposed to direct or actual damages).

 

(d)           Change of Address, Etc.  Each of the Borrowers, the Administrative
Agent, the L/C Issuer and the Swing Line Lender may change its address,
telecopier or telephone number for notices and other communications hereunder
by notice to the other parties hereto. 
Each other Lender may change its address, telecopier or telephone number
for notices and other communications hereunder by notice to the Company, the
Administrative Agent, the L/C Issuer and the Swing Line Lender.  In addition, each Lender agrees to notify the
Administrative Agent from time to time to ensure that the Administrative Agent
has on record (i) an effective address, contact name, telephone number,
telecopier number and electronic mail address to which notices and other
communications may be sent and (ii) accurate wire instructions for such
Lender.

 

(e)           Reliance by Administrative Agent, L/C Issuer and
Lenders.  The Administrative Agent, the
L/C Issuer and the Lenders shall be entitled to rely and act upon any notices
(including telephonic Committed Loan Notices and Swing Line Loan Notices) from
a Responsible Officer of any Borrower even if (i) such notices were not
made in a manner specified herein, were incomplete or were not preceded or
followed by any other form of notice specified herein, or (ii) the terms
thereof, as understood by the recipient, varied from any confirmation
thereof.  All telephonic notices to and
other telephonic communications with the Administrative Agent may be recorded
by the Administrative Agent, and each of the parties hereto hereby consents to
such recording.

 

11.03      No Waiver; Cumulative Remedies.

 

No
failure by any Lender or the Administrative Agent to exercise, and no delay by
any such Person in exercising, any right, remedy, power or privilege hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of
any right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or
privilege.  The rights, remedies, powers
and privileges herein provided are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by law.

 

87

 

11.04      Expenses; Indemnity; Damage
Waiver.

 

(a)           Costs and Expenses.  The Company shall pay (i) all reasonable
out-of-pocket expenses incurred by the Administrative Agent and its Affiliates
(including the reasonable fees, charges and disbursements of counsel for the
Administrative Agent), in connection with the syndication of the credit
facilities provided for herein, the preparation, negotiation, execution,
delivery and administration of this Agreement and the other Loan Documents or
any amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), (ii) all reasonable out-of-pocket expenses incurred by the
L/C Issuer in connection with the issuance, amendment, renewal or extension of
any Letter of Credit or any demand for payment thereunder and (iii) all
reasonable out-of-pocket expenses incurred by the Administrative Agent, any
Lender or the L/C Issuer (including the reasonable fees, charges and disbursements
of any counsel for the Administrative Agent, any Lender or the L/C Issuer) in
connection with the enforcement or protection of its rights (A) in
connection with this Agreement and the other Loan Documents, including its
rights under this Section, or (B) in connection with the Loans made or
Letters of Credit issued hereunder, including all such out-of-pocket expenses
incurred during any workout, restructuring or negotiations in respect of such
Loans or Letters of Credit.

 

(b)           Indemnification by the Company.  The Company shall indemnify the
Administrative Agent, each Lender and the L/C Issuer, and each Related Party of
any of the foregoing Persons (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses (including the reasonable fees,
charges and disbursements of any counsel for any Indemnitee), and shall
indemnify and hold harmless each Indemnitee from all fees and time charges and
disbursements for attorneys who may be employees of any Indemnitee, incurred by
any Indemnitee or asserted against any Indemnitee by any third party or by any
Borrower or any other Loan Party arising out of, in connection with, or as a
result of (i) the execution or delivery of this Agreement, any other Loan
Document or any agreement or instrument contemplated hereby or thereby, the
performance by the parties hereto of their respective obligations hereunder or
thereunder, the consummation of the transactions contemplated hereby or
thereby, or, in the case of the Administrative Agent and its Related Parties
only, the administration of this Agreement and the other Loan Documents,
(ii) any Loan or Letter of Credit or the use or proposed use of the
proceeds therefrom (including any refusal by the L/C Issuer to honor a demand
for payment under a Letter of Credit if the documents presented in connection
with such demand do not strictly comply with the terms of such Letter of
Credit), (iii) any actual or alleged presence or release of Hazardous
Materials on or originating from any property owned or operated by any Borrower
or any of its Subsidiaries, or any Environmental Claim against or affecting any
Borrower or any of its Subsidiaries, or (iv) any actual or prospective
claim, litigation, investigation or proceeding relating to any of the
foregoing, whether based on contract, tort or any other theory, whether brought
by a third party or by the Company or any other Loan Party, and regardless of
whether any Indemnitee is a party thereto, in all cases, whether or not caused
by or arising, in whole or in part, out of the comparative, contributory or
sole negligence of the Indemnitee; provided that such indemnity shall
not, as to any Indemnitee, be available to the extent that such losses, claims,
damages, liabilities or related expenses (x) are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted
from the gross negligence or willful misconduct of such Indemnitee,
(y) result from a claim brought by the Company or any other Loan Party
against an Indemnitee for breach in bad faith of such Indemnitee’s obligations
hereunder or under any other Loan Document, if the Company or such other Loan
Party has obtained a final and nonappealable judgment in its favor on such
claim as determined by a court of competent jurisdiction or (z) related to
Hazardous Materials that are unrelated to the Company or any of its
Subsidiaries and that are first used, released, disposed or otherwise emitted
by a Person other than the Company or any of its Subsidiaries at or on any 

 

88

 

property
after such property has been transferred to any Indemnitee or its successors or
assigns by foreclosure, deed-in-lieu of foreclosure or similar transfer.

 

(c)           Reimbursement by Lenders.  To the extent that the Company for any reason
fails to indefeasibly pay any amount required under subsection (a) or (b) of
this Section to be paid by it to the Administrative Agent, the L/C Issuer
or any Related Party of any of the foregoing, each Lender severally agrees to
pay to the Administrative Agent, the L/C Issuer or such Related Party, as the
case may be, such Lender’s Applicable Percentage (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 or the L/C
Issuer in its capacity as such, or against any Related Party of any of the
foregoing acting for the Administrative Agent or L/C Issuer in connection with
such capacity.  The obligations of the
Lenders under this subsection (c) are subject to the provisions of Section 2.12(d).

 

(d)           Waiver of Consequential Damages, Etc.  To the fullest extent permitted by applicable
law, no Loan Party shall assert, and hereby waives, any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or
punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement, any other Loan Document or
any agreement or instrument contemplated hereby, the transactions contemplated
hereby or thereby, any Loan or Letter of Credit or the use of the proceeds
thereof.  No Indemnitee referred to in
subsection (b) above shall be liable for any damages arising from the
use by unintended recipients of any information or other materials distributed
by it through telecommunications, electronic or other information transmission
systems in connection with this Agreement or the other Loan Documents or the
transactions contemplated hereby or thereby.

 

(e)           Payments.  All amounts due under this Section shall
be payable not later than ten Business Days after demand therefor.

 

(f)            Survival.  The agreements in this Section 11.04
shall survive the resignation of the Administrative Agent and the L/C Issuer,
the replacement of any Lender, the termination of the Aggregate Commitments and
the repayment, satisfaction or discharge of all the other Obligations.

 

11.05      Payments Set Aside.

 

To
the extent that any payment by or on behalf of any Borrower is made to the
Administrative Agent, the L/C Issuer or any Lender, or the Administrative
Agent, the L/C Issuer or any Lender exercises its right of setoff, and such
payment or the proceeds of such setoff or any part thereof is subsequently
invalidated, declared to be fraudulent or preferential, set aside or required
(including pursuant to any settlement entered into by the Administrative Agent,
the L/C Issuer or such Lender in its discretion) to be repaid to a trustee,
receiver or any other party, in connection with any proceeding under any Debtor
Relief Law or otherwise, then (a) to the extent of such recovery, the
obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or
such setoff had not occurred, and (b) each Lender and the L/C Issuer
severally agrees to pay to the Administrative Agent upon demand its applicable
share (without duplication) of any amount so recovered from or repaid by the
Administrative Agent, plus interest thereon from the date of such demand to the
date such payment is made at a rate per annum equal to the applicable Overnight
Rate from time to time in effect, in the applicable currency of such recovery
or payment.  The obligations of the
Lenders and the L/C Issuer under clause (b) of the preceding sentence
shall survive the payment in full of the Obligations and the termination of
this Agreement.

 

89

 

11.06      Successors and Assigns.

 

(a)           Successors and Assigns Generally.  The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby, except that no Loan Party
may assign or otherwise transfer any of its rights or obligations hereunder
without the prior written consent of the Administrative Agent and each Lender
and no Lender may assign or otherwise transfer any of its rights or obligations
hereunder except (i) to an Eligible Assignee in accordance with the
provisions of subsection (b) of this Section, (ii) by way of participation
in accordance with the provisions of subsection (d) of this Section,
or (iii) by way of pledge or assignment of a security interest subject to
the restrictions of subsection (f) of this Section (and any other
attempted assignment or transfer by any party hereto shall be null and
void).  Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in subsection (d) of this
Section and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent, the L/C Issuer and the Lenders)
any legal or equitable right, remedy or claim under or by reason of this Agreement.

 

(b)           Assignments by Lenders.  Any Lender may at any time assign to one or
more Eligible Assignees all or a portion of its rights and obligations under
this Agreement (including all or a portion of its Commitment and the Loans
(including for purposes of this subsection (b), participations in L/C
Obligations and in Swing Line Loans) at the time owing to it); provided
that:

 

(i)            except in the case of an assignment of the entire
remaining amount of the assigning Lender’s Commitment and the Loans at the time
owing to it or in the case of an assignment to a Lender or an Affiliate of a
Lender or an Approved Fund with respect to a Lender, the aggregate amount of
the Commitment (which for this purpose includes Loans outstanding thereunder)
or, if the Commitment is not then in effect, the principal outstanding balance
of the Loans of the assigning Lender subject to each such assignment,
determined as of the date the Assignment and Assumption with respect to such
assignment is delivered to the Administrative Agent or, if “Trade Date” is
specified in the Assignment and Assumption, as of the Trade Date, shall not be
less than $5,000,000  unless each of
the Administrative Agent and, so long as no Event of Default has occurred and
is continuing, the Company otherwise consents (each such consent not to be
unreasonably withheld or delayed); provided, however, that
concurrent assignments to members of an Assignee Group and concurrent
assignments from members of an Assignee Group to a single Eligible Assignee (or
to an Eligible Assignee and members of its Assignee Group) will be treated as a
single assignment for purposes of determining whether such minimum amount has
been met; provided, further, that the Company shall be deemed to
have consented to any such assignment unless it shall object thereto by written
notice to the Administrative Agent within fifteen (15) Business Days after
having received notice thereof.

 

(ii)           any assignment of a Commitment must be approved by
the Administrative Agent, the L/C Issuer and the Swing Line Lender, such
approval not to be unreasonably withheld or delayed, unless the Person that is
the proposed assignee is itself a Lender or an Affiliate of a Lender (whether
or not the proposed assignee would otherwise qualify as an Eligible Assignee);
and

 

(iii)          the parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Assumption, together with
a processing and recordation fee in the amount  of
$3,500; provided, however, that the Administrative Agent may, in
its sole discretion, elect to waive such processing and recordation fee in the
case of any assignment.  The Eligible 

 

90

 

Assignee,
if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire.

 

(iv)          Certain
Additional Payments.  In
connection with any assignment of rights and obligations of any Defaulting
Lender hereunder, no such assignment shall be effective unless and until, in
addition to the other conditions thereto set forth herein, the parties to the
assignment shall make such additional payments to the Administrative Agent in
an aggregate amount sufficient, upon distribution thereof as appropriate (which
may be outright payment, purchases by the assignee of participations or
subparticipations, or other compensating actions, including funding, with the
consent of the Company and the Administrative Agent, the applicable pro rata
share of Loans previously requested but not funded by the Defaulting Lender, to
each of which the applicable assignee and assignor hereby irrevocably consent),
to (x) pay and satisfy in full all payment liabilities then owed by such
Defaulting Lender to the Administrative Agent or any Lender hereunder (and
interest accrued thereon) and (y) acquire (and fund as appropriate) its
full pro rata share of all Loans and participations in Letters of Credit and
Swing Line Loans in accordance with its Applicable Percentage.  Notwithstanding the foregoing, in the event
that any assignment of rights and obligations of any Defaulting Lender
hereunder shall become effective under applicable Law without compliance with
the provisions of this paragraph, then the assignee of such interest shall be
deemed to be a Defaulting Lender for all purposes of this Agreement until such
compliance occurs.

 

Subject
to acceptance and recording thereof by the Administrative Agent pursuant to
subsection (c) of this Section, from and after the effective date
specified in each Assignment and Assumption, the Eligible Assignee thereunder
shall be a party to this Agreement and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Lender
under this Agreement, and the assigning Lender thereunder shall, to the extent
of the interest assigned by such Assignment and Assumption, be released from
its obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the 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 3.01, 3.04,
3.05, and 11.04 with respect to facts and circumstances occurring
prior to the effective date of such assignment. 
Upon request, each Borrower (at its expense) shall execute and deliver a
Note to the assignee Lender.  Any
assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this subsection shall be treated for purposes
of this Agreement as a sale by such Lender of a participation in such rights
and obligations in accordance with subsection (d) of this Section.

 

(c)           Register.  The Administrative Agent, acting solely for
this purpose as an agent of the Borrowers (and such agency being solely for tax
purposes), shall maintain at the Administrative Agent’s Office a copy of each
Assignment and Assumption delivered to it and a register for the recordation of
the names and addresses of the Lenders, and the Commitments of, and principal
amounts of the Loans and L/C Obligations owing to, each Lender pursuant to the
terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, absent manifest error, and the Borrowers, the Administrative 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.  In addition, the Administrative Agent shall
maintain on the Register information regarding the designation, and revocation
of designation, of any Lender as a Defaulting Lender.  The Register shall be available for
inspection by each of the Borrowers and the L/C Issuer at any reasonable time
and from time to time upon reasonable prior notice.  In addition, at any time that a request for a
consent for a material or substantive change to the Loan Documents is pending,
any Lender may request and receive from the Administrative Agent a copy of the
Register.

 

91

 

(d)           Participations.  Any Lender may at any time, without the
consent of, or notice to, any Borrower or the Administrative Agent, sell
participations to any Person (other than a natural person, a Defaulting Lender
or the Company or any of the Company’s Affiliates or Subsidiaries) (each, a “Participant”)
in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans
(including such Lender’s participations in L/C Obligations and/or Swing Line
Loans) owing to it); provided that (i) such Lender’s obligations
under this Agreement shall remain unchanged, (ii) such Lender shall remain
solely responsible to the other parties hereto for the performance of such
obligations and (iii) the Borrowers, the Administrative Agent, the Lenders
and the L/C Issuer shall continue to deal solely and directly with such Lender
in connection with such Lender’s rights and obligations under this Agreement.

 

Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any  provision of this Agreement; provided
that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, waiver or other
modification described in the first proviso to Section 11.01 that
affects such Participant.  Subject to
subsection (e) of this Section, each Borrower agrees that each
Participant shall be entitled to the benefits of Sections 3.01, 3.04
and 3.05  to the same extent as if it were
a Lender and had acquired its interest by assignment pursuant to
subsection (b) of this Section. 
To the extent permitted by law, each Participant also shall be entitled
to the benefits of Section 11.08  as though it
were a Lender, provided such Participant agrees to be subject to Section 2.13
as though it were a Lender.

 

(e)           Limitation upon Participant Rights.  A Participant shall not be entitled to
receive any greater payment under Section 3.01, 3.04  or 3.05 than the applicable Lender would have been
entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the
Company’s prior written consent.  A
Participant that would be a Foreign Lender if it were a Lender shall not be
entitled to the benefits of Section 3.01 unless the Company is
notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrowers, to comply with Section 3.01(e) as
though it were a Lender.

 

(f)            Certain Pledges.  Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement
(including under its Note(s), if any) to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve
Bank; provided that no such pledge or assignment shall release such
Lender from any of its obligations hereunder or substitute any such pledgee or
assignee for such Lender as a party hereto.

 

(g)           Electronic Execution of Assignments.  The words “execution,” “signed,” “signature,”
and words of like import in any Assignment and Assumption shall be deemed to
include electronic signatures or the keeping of records in electronic form,
each of which shall be of the same legal effect, validity or enforceability as
a manually executed signature or the use of a paper-based recordkeeping system,
as the case may be, to the extent and as provided for in any applicable law,
including the Federal Electronic Signatures in Global and National Commerce
Act, the New York State Electronic Signatures and Records Act, or any other
similar state laws based on the Uniform Electronic Transactions Act.

 

(h)           Resignation as L/C Issuer or Swing Line Lender after
Assignment. 
Notwithstanding anything to the contrary contained herein, if at any
time Bank of America assigns all of its Commitment and Loans pursuant to
subsection (b) above, Bank of America may, (i) upon 30 days’
notice to the Company and the Lenders, resign as L/C Issuer and/or (ii) upon
30 days’ notice to the Company, resign as Swing Line Lender.  In the event of any such resignation as L/C
Issuer or Swing Line Lender, the Company shall be entitled to appoint from
among the Lenders a successor L/C Issuer or Swing Line Lender hereunder; provided,
however, that no failure by the Company to appoint any such successor
shall 

 

92

 

affect
the resignation of Bank of America as L/C Issuer or Swing Line Lender, as the
case may be.  If Bank of America resigns
as L/C Issuer, it shall retain all the rights, powers, privileges and duties of
the L/C Issuer hereunder with respect to all Letters of Credit outstanding as
of the effective date of its resignation as L/C Issuer and all L/C Obligations
with respect thereto (including the right to require the Lenders to make Base
Rate Committed Loans or fund risk participations in Unreimbursed Amounts
pursuant to Section 2.03(c)). 
If Bank of America resigns as Swing Line Lender, it shall retain all the
rights of the Swing Line Lender provided for hereunder with respect to Swing
Line Loans made by it and outstanding as of the effective date of such
resignation, including the right to require the Lenders to make Base Rate
Committed Loans or fund risk participations in outstanding Swing Line Loans
pursuant to Section 2.04(c). 
Upon the appointment of a successor L/C Issuer and/or Swing Line Lender,
(a) such successor shall succeed to and become vested with all of the
rights, powers, privileges and duties of the retiring L/C Issuer or Swing Line
Lender, as the case may be, and (b) the successor L/C Issuer shall issue
letters of credit in substitution for the Letters of Credit, if any,
outstanding at the time of such succession or make other arrangements
satisfactory to Bank of America to effectively assume the obligations of Bank
of America with respect to such Letters of Credit.  No Lender shall be required to become an L/C
Issuer or a Swing Line Lender without its consent.

 

11.07      Treatment of Certain Information;
Confidentiality.

 

Each
of the Administrative Agent, the Lenders and the L/C Issuer agrees to maintain
the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its Affiliates and to its and its
Affiliates’ respective partners, directors, officers, employees, agents,
advisors and representatives (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (b) to
the extent requested by any regulatory authority purporting to have
jurisdiction over it (including any self-regulatory authority, such as the
National Association of Insurance Commissioners); provided that unless
specifically prohibited by applicable law or court order in the reasonable
judgment of such Lender or counsel, such Lender shall use its commercially
reasonable efforts to notify the Company of any request by any regulatory
authority or representative thereof of the National Association of Insurance
Commissioners (other than any such request in connection with any examination
of the financial condition of such Lender by such governmental agency or the
National Association of Insurance Commissioners) for disclosure of any such
non-public information prior to disclosure of such information, (c) to the
extent required by applicable laws or regulations or by any subpoena or similar
legal process, (d) to any other party hereto, (e) in connection with
the exercise of any remedies hereunder or under any other Loan Document or any
action or proceeding relating to this Agreement or any other Loan Document or
the enforcement of rights hereunder or thereunder, (f) subject to an
agreement containing provisions substantially the same as those of this
Section, to (i) any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this
Agreement or (ii) any actual or prospective counterparty (or its advisors)
to any swap or derivative transaction relating to a Borrower and its
obligations, (g) with the consent of the Company or (h) to the extent
such Information (x) becomes publicly available other than as a result of
a breach of this Section by such Person or (y) becomes available
to the Administrative Agent, any Lender, the L/C Issuer or any of their
respective Affiliates on a nonconfidential basis from a source other than the
Company.

 

For
purposes of this Section, “Information” means all information received
from the Company or any Subsidiary relating to the Company or any Subsidiary or
any of their respective businesses, other than any such information that is
available to the Administrative Agent, any Lender or the L/C Issuer on a
nonconfidential basis prior to disclosure by the Company or any Subsidiary, provided
that, in the case of information received from the Company or any Subsidiary
after the date hereof, such information is clearly identified at the time of
delivery as confidential.  Any Person
required to maintain the confidentiality of Information as provided in this
Section shall be considered to have complied with its 

 

93

 

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 to its own
confidential information.

 

Each
of the Administrative Agent, the Lenders and the L/C Issuer acknowledges that (a) the
Information may include material non-public information concerning the Company
or a Subsidiary, as the case may be, (b) it has developed compliance
procedures regarding the use of material non-public information and (c) it
will handle such material non-public information in accordance with applicable
Law, including Federal and state securities Laws.

 

11.08      Right of Setoff.

 

If
an Event of Default shall have occurred and be continuing, each Lender, the L/C
Issuer and each of their respective Affiliates is hereby authorized at any time
and from time to time, to the fullest extent permitted by applicable law, to
set off and apply any and all deposits (general or special, time or demand,
provisional or final, in whatever currency) at any time held and other
obligations (in whatever currency) at any time owing by such Lender, the L/C
Issuer or any such Affiliate to or for the credit or the account of any
Borrower or any other Loan Party against any and all of the obligations of such
Borrower or such Loan Party then due and payable under this Agreement or any
other Loan Document to such Lender or the L/C Issuer, irrespective of whether
or not such Lender or the L/C Issuer shall have made any demand under this
Agreement or any other Loan Document; provided, that, in the
event that any Defaulting Lender shall exercise any such right of setoff, (x) all
amounts so set off shall be paid over immediately to the Administrative Agent
for further application in accordance with the provisions of Section 2.16
and, pending such payment, shall be segregated by such Defaulting Lender from
its other funds and deemed held in trust for the benefit of the Administrative
Agent and the Lenders and (y) the Defaulting Lender shall provide promptly
to the Administrative Agent a statement describing in reasonable detail the
Obligations owing to such Defaulting Lender as to which it exercised such right
of setoff..  The rights of each Lender,
the L/C Issuer and their respective Affiliates under this Section are in
addition to other rights and remedies (including other rights of setoff) that
such Lender, the L/C Issuer or their respective Affiliates may have.  Each Lender and the L/C Issuer agrees to
notify the Company and the Administrative Agent promptly after any such setoff
and application, provided that the failure to give such notice shall not
affect the validity of such setoff and application.

 

11.09      Interest Rate Limitation.

 

Notwithstanding
anything to the contrary contained in any Loan Document, the interest paid or
agreed to be paid under the Loan Documents shall not exceed the maximum rate of
non-usurious interest permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender
shall receive interest in an amount that exceeds the Maximum Rate, the excess
interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the Company. 
In determining whether the interest contracted for, charged, or received
by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person
may, to the extent permitted by applicable Law, (a) characterize any
payment that is not principal as an expense, fee, or premium rather than
interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of
interest throughout the contemplated term of the Obligations hereunder.

 

11.10      Counterparts; Integration;
Effectiveness.

 

This
Agreement may be executed in counterparts (and by different parties hereto in
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract.  This Agreement and the other Loan Documents
constitute the entire contract among the parties relating to the subject matter
hereof and supersede any and all previous agreements and 

 

94

 

understandings,
oral or written, relating to the subject matter hereof.  Except as provided in Section 5.01,
this Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received
counterparts hereof that, when taken together, bear the signatures of each of
the other parties hereto.  Delivery of an
executed counterpart of a signature page of this Agreement by telecopy
shall be effective as delivery of a manually executed counterpart of this
Agreement.

 

11.11      Survival of Representations and
Warranties.

 

All
representations and warranties made hereunder and in any other Loan Document or
other document delivered pursuant hereto or thereto or in connection herewith
or therewith shall survive the execution and delivery hereof and thereof.  Such representations and warranties have been
or will be relied upon by the Administrative Agent and each Lender, regardless
of any investigation made by the Administrative Agent or any Lender or on their
behalf and notwithstanding that the Administrative Agent or any Lender may have
had notice or knowledge of any Default at the time of any Credit Extension, and
shall continue in full force and effect as long as any Loan or any other
Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit
shall remain outstanding.

 

11.12      Severability.

 

If
any provision of this Agreement or the other Loan Documents is held to be
illegal, invalid or unenforceable, (a) the legality, validity and
enforceability of the remaining provisions of this Agreement and the other Loan
Documents shall not be affected or impaired thereby and (b) the parties
shall endeavor in good faith negotiations to replace the illegal, invalid or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the illegal, invalid or unenforceable
provisions.  The invalidity of a
provision in a particular jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.  Without limiting the foregoing provisions of
this Section 11.12, if and to the extent that the enforceability of
any provisions in this Agreement relating to Defaulting Lenders shall be
limited by Debtor Relief Laws, as determined in good faith by the
Administrative Agent, the L/C Issuer or the Swing Line Lender, as applicable,
then such provisions shall be deemed to be in effect only to the extent not so
limited.

 

11.13      Replacement of Lenders.

 

If
(a) any Lender requests compensation under Section 3.04, (b) the
Company is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Sections
3.01 or 3.04, (c) any Lender is subject to illegality under Section 3.02,
(d) a Lender (a “Non-Consenting Lender”) does not consent to a
proposed change, waiver, discharge or termination with respect to any Loan
Document that has been approved by the Required Lenders as provided in Section 11.01
but requires unanimous consent of all Lenders or all Lenders directly affected
thereby (as applicable) or (e) any Lender is a Defaulting Lender, then the
Company may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in, and
consents required by, Section 11.06), all of its interests, rights
and obligations under this Agreement and the related Loan Documents to an
assignee that shall assume such obligations (which assignee may be another Lender,
if a Lender accepts such assignment), provided that:

 

(i)            Administrative Agent shall have received the
assignment fee specified in Section 11.06(b);

 

95

 

(ii)           such Lender shall have received payment of an amount
equal to the outstanding principal of its Loans and L/C Advances, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder
and under the other Loan Documents (including any amounts under Section 3.05)
from the assignee (to the extent of such outstanding principal and accrued
interest and fees) or the Company or applicable Designated Borrower (in the
case of all other amounts);

 

(iii)          in the case of any such assignment resulting from a
claim for compensation under Section 3.04 or payments required to
be made pursuant to Section 3.01, such assignment will result in a
reduction in such compensation or payments thereafter;

 

(iv)          such assignment does not conflict with applicable
Laws; and

 

(v)           in the case of any such assignment resulting from a
Non-Consenting Lender’s failure to consent to a proposed change, waiver,
discharge or termination with respect to any Loan Document, the applicable
replacement bank, financial institution or Fund consents to the proposed
change, waiver, discharge or termination; provided that the failure by
such Non-Consenting Lender to execute and deliver an Assignment and Assumption
shall not impair the validity of the removal of such Non-Consenting Lender and
the mandatory assignment of such Non-Consenting Lender’s Commitments and
outstanding Loans and participations in L/C Obligations and Swing Line Loans
pursuant to this Section 11.13 shall nevertheless be effective
without the execution by such Non-Consenting Lender of an Assignment and
Assumption.

 

A
Lender shall not be required to make any such assignment or delegation if,
prior thereto, as a result of a waiver by such Lender or otherwise, the
circumstances entitling the Company to require such assignment and delegation
cease to apply.

 

11.14      Governing Law; Jurisdiction; Etc.

 

(a)           GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD
TO NEW YORK CONFLICTS OF LAWS PRINCIPLES.

 

(b)           SUBMISSION TO JURISDICTION.  EACH BORROWER AND EACH OTHER LOAN PARTY
IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE
NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW
YORK CITY AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF
NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE
PARTIES HERETO 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 COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE 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 OR IN ANY OTHER
LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER
OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT 

 

96

 

AGAINST
ANY BORROWER OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY
JURISDICTION.

 

(c)           WAIVER OF VENUE.  EACH BORROWER AND EACH OTHER LOAN PARTY
IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN
PARAGRAPH (B) OF THIS SECTION. 
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 

(d)           SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY CONSENTS TO
SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 11.02.  NOTHING IN THIS AGREEMENT WILL AFFECT THE
RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
APPLICABLE LAW.

 

11.15      Waiver of Jury Trial.

 

EACH
PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON 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 BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

 

11.16      USA PATRIOT Act Notice.

 

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

 

11.17      Judgment Currency.

 

If,
for the purposes of obtaining judgment in any court, it is necessary to convert
a sum due hereunder or any other Loan Document in one currency into another
currency, the rate of exchange used shall be that at which in accordance with
normal banking procedures the Administrative Agent could purchase the first
currency with such other currency on the Business Day preceding that on which
final judgment is given.  The obligation
of each Borrower in respect of any such sum due from it to the Administrative
Agent or the Lenders hereunder or under the other Loan Documents shall,
notwithstanding any judgment in a currency (the “Judgment Currency”)
other than that in which such sum is denominated in accordance with the
applicable provisions of this Agreement (the “Agreement Currency”), be 

 

97

 

discharged
only to the extent that on the Business Day following receipt by the
Administrative Agent of any sum adjudged to be so due in the Judgment Currency,
the Administrative Agent may in accordance with normal banking procedures
purchase the Agreement Currency with the Judgment Currency.  If the amount of the Agreement Currency so
purchased is less than the sum originally due to the Administrative Agent from
any Borrower in the Agreement Currency, such Borrower agrees, as a separate
obligation and notwithstanding any such judgment, to indemnify the
Administrative Agent or the Person to whom such obligation was owing against such
loss.  If the amount of the Agreement
Currency so purchased is greater than the sum originally due to the
Administrative Agent in such currency, the Administrative Agent agrees to
promptly return the amount of any excess to such Borrower (or to any other
Person who may be entitled thereto under applicable law).

 

11.18      No Advisory or Fiduciary
Relationship.

 

In
connection with all aspects of each transaction contemplated hereby (including
in connection with any amendment, waiver or other modification hereof or of any
other Loan Document), each Borrower acknowledges and agrees, and acknowledges its Affiliates’
understanding, that: (a)(i) the arranging and other services
regarding this Agreement provided by the Administrative Agent, the Joint Lead
Arrangers and the Lenders, are arm’s-length commercial transactions between
each Borrower and its
Affiliates, on the one hand, and the Administrative Agent, the Joint Lead
Arrangers and the Lenders, on the other hand, (ii) each
Borrower has consulted its own legal, accounting, regulatory and tax advisors
to the extent it has deemed appropriate, and (iii) each
Borrower is capable of evaluating, and understands and accepts, the terms,
risks and conditions of the transactions contemplated hereby and by the other
Loan Documents; (b)(i) the Administrative Agent, each Joint
Lead Arranger and each Lender each is and has been acting solely as a principal
and, except as expressly agreed in writing by the relevant parties, has not
been, is not and will not be acting as an advisor, agent or fiduciary, for each
Borrower or any of its Affiliates or any other Person and (ii) neither the Administrative Agent nor
either Joint Lead Arranger nor any Lender has any obligation to any Borrower or
any of its Affiliates with respect to the transactions contemplated hereby
except those obligations expressly set forth herein and in the other Loan
Documents; and (c) the
Administrative Agent, the Joint Lead Arrangers and the Lenders and their
respective Affiliates may be engaged in a broad range of transactions that
involve interests that differ from those of such Borrower and its Affiliates,
and neither the Administrative Agent nor either Joint Lead Arranger nor any
Lender has any obligation to disclose any of such interests to such Borrower or
its Affiliates.  To the fullest extent
permitted by law, each Borrower hereby waives and releases, any claims that it
may have against the Administrative Agent, the Joint Lead Arrangers or any
Lender with respect to any breach or alleged breach of agency or fiduciary duty
in connection with any aspect of any transaction contemplated hereby.

 

11.19      Termination of Existing Credit
Agreement.

 

Lenders
which are parties to the Existing Credit Agreement (and which constitute “Required
Lenders” under and as defined in the Existing Credit Agreement) hereby waive
any advance notice requirement for terminating the commitments under the
Existing Credit Agreement, and the Borrowers and the applicable Lenders agree
that the Existing Credit Agreement and the commitments thereunder shall be
terminated on the date hereof (except for any provisions thereof which by their
terms survive termination thereof).

 

98Exhibit 4.1

 

Execution Version

 

 

REGAL ENTERTAINMENT
GROUP

 

 

AND

 

 

WELLS FARGO BANK,
NATIONAL ASSOCIATION

 

 

AS TRUSTEE

 

 

9.125% SENIOR NOTES DUE
2018

 

 

INDENTURE

 

 

DATED AS OF AUGUST 16,
2010

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I Definitions and Incorporation by Reference

  	
  1

  
	
  Section 1.01

  	
  Definitions

  	
  1

  
	
  Section 1.02

  	
  Other
  Definitions

  	
  20

  
	
  Section 1.03

  	
  Incorporation by Reference of Trust Indenture Act

  	
  21

  
	
  Section 1.04

  	
  Rules of
  Construction

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE II
  The Securities

  	
  22

  
	
  Section 2.01

  	
  Amount of Securities; Issuable in Series

  	
  22

  
	
  Section 2.02

  	
  Form and Dating

  	
  23

  
	
  Section 2.03

  	
  Execution and Authentication

  	
  23

  
	
  Section 2.04

  	
  Registrar and Paying Agent

  	
  24

  
	
  Section 2.05

  	
  Paying Agent To Hold Money in Trust

  	
  24

  
	
  Section 2.06

  	
  Holder Lists

  	
  24

  
	
  Section 2.07

  	
  Replacement Securities

  	
  24

  
	
  Section 2.08

  	
  Outstanding Securities

  	
  25

  
	
  Section 2.09

  	
  Temporary Securities

  	
  25

  
	
  Section 2.10

  	
  Cancellation

  	
  25

  
	
  Section 2.11

  	
  Defaulted Interest

  	
  26

  
	
  Section 2.12

  	
  CUSIP Numbers, Common Codes or ISINs

  	
  27

  
	
  Section 2.13

  	
  Computation of Interest

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE III
  Redemption

  	
  27

  
	
  Section 3.01

  	
  Notices to Trustee

  	
  27

  
	
  Section 3.02

  	
  Selection of Securities To Be Redeemed

  	
  27

  
	
  Section 3.03

  	
  Notice of Redemption

  	
  28

  
	
  Section 3.04

  	
  Effect of Notice of Redemption

  	
  28

  
	
  Section 3.05

  	
  Deposit of Redemption Price

  	
  28

  
	
  Section 3.06

  	
  Securities Redeemed in Part

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV
  Covenants

  	
  29

  
	
  Section 4.01

  	
  Payment of Securities

  	
  29

  
	
  Section 4.02

  	
  Corporate Existence

  	
  29

  
	
  Section 4.03

  	
  Payment of Taxes and Other Claims

  	
  30

  
	
  Section 4.04

  	
  Maintenance of Properties

  	
  30

  
	
  Section 4.05

  	
  Limitation on Consolidated Indebtedness

  	
  30

  
	
  Section 4.06

  	
  Limitation on Restricted Payments

  	
  31

  
	
  Section 4.07

  	
  Limitation on Transactions with Affiliates

  	
  34

  
	
  Section 4.08

  	
  Limitation on Liens Securing Indebtedness

  	
  35

  
	
  Section 4.09

  	
  Limitation on Dividend and Other Payment Restrictions
  Affecting Subsidiaries

  	
  35

  
	
  Section 4.10

  	
  Future Guarantors

  	
  37

  
	
  Section 4.11

  	
  Change of Control

  	
  37

  
	
  Section 4.12

  	
  Provision
  of Financial Information

  	
  38

  

 

i

 

	
  Section 4.13

  	
  Statement as to Compliance

  	
  38

  
	
  Section 4.14

  	
  Waiver of Certain Covenants

  	
  38

  
	
  Section 4.15

  	
  Further Instruments and Acts

  	
  39

  
	
  Section 4.16

  	
  Payment for Consent

  	
  39

  
	
  Section 4.17

  	
  Covenant
  Suspension

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE V
  Successor Company

  	
  40

  
	
  Section 5.01

  	
  Consolidation

  	
  40

  
	
  Section 5.02

  	
  Successor Substituted

  	
  41

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI
  Defaults and Remedies

  	
  41

  
	
  Section 6.01

  	
  Events of Default

  	
  41

  
	
  Section 6.02

  	
  Acceleration; Rescission and Annulment

  	
  43

  
	
  Section 6.03

  	
  Other Remedies

  	
  44

  
	
  Section 6.04

  	
  Waiver of Past Defaults

  	
  44

  
	
  Section 6.05

  	
  Control by Majority

  	
  44

  
	
  Section 6.06

  	
  Limitation on Suits

  	
  45

  
	
  Section 6.07

  	
  Rights of Holders to Receive Payment

  	
  45

  
	
  Section 6.08

  	
  Collection Suit by Trustee

  	
  45

  
	
  Section 6.09

  	
  Trustee May File Proofs of Claim

  	
  45

  
	
  Section 6.10

  	
  Priorities

  	
  46

  
	
  Section 6.11

  	
  Undertaking for Costs

  	
  46

  
	
  Section 6.12

  	
  Waiver of Stay or Extension Laws

  	
  46

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII
  Trustee

  	
  46

  
	
  Section 7.01

  	
  Duties of Trustee

  	
  46

  
	
  Section 7.02

  	
  Rights of
  Trustee

  	
  48

  
	
  Section 7.03

  	
  Individual Rights of Trustee

  	
  48

  
	
  Section 7.04

  	
  Trustee’s Disclaimer

  	
  48

  
	
  Section 7.05

  	
  Notice of Defaults

  	
  49

  
	
  Section 7.06

  	
  Reports by Trustee to Holders

  	
  49

  
	
  Section 7.07

  	
  Compensation and Indemnity

  	
  49

  
	
  Section 7.08

  	
  Replacement of Trustee

  	
  50

  
	
  Section 7.09

  	
  Successor Trustee by Merger

  	
  50

  
	
  Section 7.10

  	
  Eligibility; Disqualification

  	
  51

  
	
  Section 7.11

  	
  Preferential Collection of Claims Against Company

  	
  51

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII
  Discharge of Indenture; Defeasance

  	
  51

  
	
  Section 8.01

  	
  Discharge of Liability on Securities; Defeasance

  	
  51

  
	
  Section 8.02

  	
  Conditions to Defeasance

  	
  52

  
	
  Section 8.03

  	
  Application
  of Trust Money

  	
  53

  
	
  Section 8.04

  	
  Repayment to Company

  	
  54

  
	
  Section 8.05

  	
  Indemnity for Government Obligations

  	
  54

  
	
  Section 8.06

  	
  Reinstatement

  	
  54

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX
  Amendments

  	
  54

  
	
  Section 9.01

  	
  Without Consent of Holders

  	
  54

  

 

ii

 

	
  Section 9.02

  	
  With Consent of Holders

  	
  55

  
	
  Section 9.03

  	
  Compliance with Trust Indenture Act

  	
  56

  
	
  Section 9.04

  	
  Revocation and Effect of Consents and Waivers

  	
  56

  
	
  Section 9.05

  	
  Notation on or Exchange of Securities

  	
  56

  
	
  Section 9.06

  	
  Trustee To Sign Amendments

  	
  56

  
	
   

  	
   

  	
   

  
	
  ARTICLE X
  Guarantees

  	
  57

  
	
  Section 10.01

  	
  Subsidiary Guarantees

  	
  57

  
	
  Section 10.02

  	
  Execution
  and Delivery of Subsidiary Guarantees

  	
  59

  
	
  Section 10.03

  	
  Limitation on Liability; Termination, Release and Discharge

  	
  59

  
	
  Section 10.04

  	
  Right of Contribution

  	
  60

  
	
  Section 10.05

  	
  No Subrogation

  	
  60

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI
  Miscellaneous

  	
  61

  
	
  Section 11.01

  	
  Trust Indenture Act Controls

  	
  61

  
	
  Section 11.02

  	
  Notices

  	
  61

  
	
  Section 11.03

  	
  Communication by Holders with Other Holders

  	
  62

  
	
  Section 11.04

  	
  Certificate and Opinion as to Conditions

  	
  62

  
	
  Section 11.05

  	
  Statements Required in Certificate or Opinions

  	
  62

  
	
  Section 11.06

  	
  When Securities Disregarded

  	
  63

  
	
  Section 11.07

  	
  Rules by Trustee, Paying Agent and Registrar

  	
  63

  
	
  Section 11.08

  	
  Legal Holidays

  	
  63

  
	
  Section 11.09

  	
  Governing Law

  	
  63

  
	
  Section 11.10

  	
  No Recourse Against Others

  	
  63

  
	
  Section 11.11

  	
  Successors

  	
  64

  
	
  Section 11.12

  	
  Separability Clause

  	
  64

  
	
  Section 11.13

  	
  Reliance on Financial Data

  	
  64

  
	
  Section 11.14

  	
  Multiple Originals

  	
  64

  
	
  Section 11.15

  	
  Table of Contents; Headings

  	
  64

  
	
  Section 11.16

  	
  U.S.A. Patriot Act

  	
  64

  

 

	
  Exhibit A

  	
   

  	
  Provisions Relating to the
  Securities

  
	
  Appendix I to Exhibit A

  	
   

  	
  Form of Initial
  Security

  
	
  Exhibit B

  	
   

  	
  Form of Certificate to
  Be Delivered in Connection with Transfers Pursuant to Regulation S

  
	
  Exhibit C

  	
   

  	
  Form of Supplemental
  Indenture to Add Guarantors

  

 

iii

 

INDENTURE dated as of August 16,
2010, between REGAL ENTERTAINMENT GROUP, a Delaware corporation (the “Company”),
and Wells Fargo Bank, National Association, as Trustee (the “Trustee”).  Certain capitalized terms used herein have
the respective meanings set forth in Article I hereof.

 

For and in consideration of
the premises and the purchase of the Securities by the Holders thereof, each
party agrees as follows for the benefit of the other party and for the equal
and ratable benefit of the Holders of (i) the Company’s 9.125% Senior
Notes due 2018, issued on the date hereof (the “Initial Securities”),
(ii) if and when issued, an unlimited principal amount of additional
9.125% Senior Notes due 2018 that may be offered from time to time in one or
more series subsequent to the Issue Date as provided for in this Indenture (the
“Additional Securities”) and (iii) if and when issued, any of the
Company’s 9.125% Senior Notes due 2018 that may be issued from time to time in
exchange for Additional Securities in an offer registered under the Securities
Act as provided in a Registration Rights Agreement (the “Exchange Securities”)
or if and when issued pursuant to a private exchange of Additional Securities
(the “Private Exchange Securities,” and together with the Exchange
Securities, the Initial Securities and Additional Securities, the “Securities”):

 

ARTICLE I

 

DEFINITIONS AND INCORPORATION BY
REFERENCE

 

Section 1.01           Definitions.

 

“Acquired Indebtedness” of any particular Person means
Indebtedness of any other Person existing at the time such other Person merged
with or into or became a Subsidiary of such particular Person or assumed by
such particular Person in connection with the acquisition of assets from any
other Person, and not incurred by such other Person in connection with, or in
contemplation of, such other Person merging with or into such particular Person
or becoming a Subsidiary of such particular Person or such acquisition.

 

“Additional Interest” means the additional
interest, if any, to be paid on any Additional Securities pursuant to any
Registration Rights Agreement as described in Exhibit A.  All references in this Indenture to “interest”
shall include any Additional Interest.

 

“Affiliate” means, with respect to any specified Person:
(i) any other Person directly or indirectly controlling or controlled by
or under direct or indirect common control with such specified Person; or
(ii) any other Person that owns, directly or indirectly, 10% or more of
such Person’s Capital Stock or any officer or director of any such Person or
other Person or with respect to any natural Person, any person having a
relationship with such Person by blood, marriage or adoption not more remote
than first cousin.  For the purposes of this definition, “control” when
used with respect to any specified Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing.

 

1

 

“Applicable Premium” means, with respect to any Securities on
any redemption date, the greater of: (1) 1.0% of the principal amount of
the Security; or (2) the excess, if any, of (a) the present value at
such redemption date of (i) the redemption price of the Security at August 15,
2014 (such redemption price being set forth in the paragraph 5(c) of the
Securities set forth in Appendix I to Exhibit A), plus (ii) all required interest
payments due on such Security through August 15, 2014 (excluding accrued
but unpaid interest to the redemption date), computed using a discount rate
equal to the Treasury Rate as of such redemption date plus 50 basis points; over (b) the
principal amount of such Security.

 

“Bankruptcy Laws” means the bankruptcy laws of the United
States and the law of any other jurisdiction relating to bankruptcy,
insolvency, winding up, liquidation, reorganization or relief of debtors.

 

“Bankruptcy
Order” means any court order made in a proceeding pursuant to or
within the meaning of any Bankruptcy Law, containing an adjudication of
bankruptcy or insolvency, or providing for liquidation, winding up, dissolution
or reorganization, or appointing a Custodian of a debtor or of all or any
substantial part of a debtor’s property, or providing for the staying,
arrangement, adjustment or composition of indebtedness or other relief of a
debtor.

 

“Board of Directors” means the Board of Directors of the
Company or any committee of such Board of Directors duly authorized to act
under this Indenture.

 

“Board Resolution” means a copy of a resolution, certified by
the Secretary of the Company to have been duly adopted by the Board of
Directors and to be in full force and effect on the date of such certification,
and delivered to the Trustee.

 

“Business Day” means any day other than a Saturday or Sunday
or other day on which banks in New York, New York, or the city in which the
Corporate Trust Office is located, or, if no Security is outstanding, the city
in which the principal corporate trust office of the Trustee is located, are
authorized or required to be closed.

 

“Capital Lease Obligations” of any Person means, at the time
any determination is to be made, the amount of the liability in respect of a
capital lease that would at that time be required to be capitalized on a
balance sheet in accordance with GAAP.

 

“Capital Stock” of any Person means any and all shares, interests,
participations or other equivalents (however designated) of such Person’s
capital stock, including preferred stock, any rights (other than debt
securities convertible into capital stock), warrants or options to acquire such
capital stock, whether now outstanding or issued after the date of this
Indenture.

 

“Cash Equivalents” means: (i) United States dollars;
(ii) securities issued or directly and fully guaranteed or insured by the
United States government or any agency or instrumentality; (iii) certificates
of deposit and eurodollar time deposits with maturities of six months or less
from the date of acquisition, bankers’ acceptances with maturities not
exceeding six months and overnight bank deposits, in each case with any United
States domestic commercial bank having capital and surplus in excess of
$500.0 million and a Keefe Bank Watch Rating of “B” or better;
(iv) repurchase obligations with a term of not more than seven days for
underlying securities of the types described in clauses (ii) and (iii) above
entered into with any 

 

2

 

financial institution meeting
the qualifications specified in clause (iii) above; (v) commercial
paper having one of the two highest rating categories obtainable from Moody’s
or S&P in each case maturing within six months after the date of
acquisition; (vi) readily marketable direct obligations issued by any
State of the United States of America or any political subdivision thereof
having one of the two highest rating categories obtainable from Moody’s or
S&P; and (vii) investments in money market funds which invest at least
95% of their assets in securities of the types described in
clauses (i) through (vi) of this definition.

 

“Change of Control” means the occurrence of, after the date
of this Indenture, any of the following events: (i) any “person” or “group”
as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act other than one or more Permitted Holders is or becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except
that such person or group shall be deemed to have “beneficial ownership” of all
shares that any such person or group has the right to acquire, whether such
right is exercisable immediately or only after the passage of time), directly
or indirectly, by way of merger, consolidation or other business combination or
purchase of 50% or more of the total voting power of the Voting Stock of the
Company; (ii) the adoption of a plan relating to the liquidation or dissolution
of the Company; (iii) the sale, lease, transfer or other conveyance, in
one or a series of related transactions, of all or substantially all of the
assets of the Company and its Subsidiaries, taken as a whole, to any Person
other than one or more Permitted Holders; (iv) the first day on which a
majority of the members of the Board of Directors are not Continuing Directors;
or (v) a change of control under any of the indentures relating to the
Existing Notes (to the extent obligations under such Existing Notes are
outstanding at such time).

 

“Company” means the Person named as the “Company” in the
first paragraph of this Indenture, until a successor Person shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter “Company”
shall mean such successor Person.  To the extent necessary to comply with
the requirements of the provisions of Sections 310 through 317 of the TIA as
they are applicable to the Company, the term “Company” shall include any other
obligor with respect to the Securities for the purposes of complying with such
provisions.

 

“Consolidated EBITDA” means, with respect to any Person for
any period, the Consolidated Net Income (Loss) of such Person for such period
increased (to the extent deducted in determining Consolidated Net Income
(Loss)) by the sum of:

 

(i)         deferred
lease expenses;

 

(ii)           all
income taxes of such Person and its Subsidiaries paid or accrued in accordance
with GAAP for such period (other than income taxes attributable to
extraordinary, unusual or non-recurring gains or losses);

 

(iii)       Consolidated
Interest Expense of such Person and its Subsidiaries for such period;

 

(iv)       depreciation
expense of such Person and its Subsidiaries for such period;

 

3

 

(v)        amortization
expense of such Person and its Subsidiaries for such period including
amortization of capitalized debt issuance costs;

 

(vi)       any
other non-cash charges of such Person and its Subsidiaries for such period
(including non-cash expenses recognized in accordance with Financial Accounting
Standard Number 106), all determined on a consolidated basis in accordance
with GAAP; and

 

(vii)      any
fees, expenses, charges or premiums relating to any issuance of Capital Stock
or issuance, repayment, refinancing, amendment or modification of Indebtedness
(in each case, whether or not successful), including, without limitation any
fees, expenses or charges related to the offering of the Securities;

 

provided,
further, that, solely with
respect to calculations of the Consolidated EBITDA Ratio:

 

(i)         Consolidated
EBITDA shall include the effects of incremental contributions the Company
reasonably believes in good faith could have been achieved during the relevant
period as a result of a Theatre Completion had such Theatre Completion occurred
as of the beginning of the relevant period; provided,
however, that such incremental
contributions were identified and quantified in good faith in an Officers’
Certificate delivered to the Trustee at the time of any calculation of the
Consolidated EBITDA Ratio;

 

(ii)        Consolidated EBITDA shall be calculated on a pro forma basis
after giving effect to any motion picture theatre or screen that was
permanently or indefinitely closed for business, at any time on or subsequent to
the first day of such period as if such theatre or screen was closed for the
entire period; and

 

(iii)       All preopening expense and theatre
closure expense which reduced (increased) Consolidated Net Income (Loss) during
any applicable period shall be added to (subtracted from) Consolidated EBITDA.

 

“Consolidated EBITDA Ratio” of any Person means, for any
period, the ratio of Consolidated EBITDA to Consolidated Interest Expense for
such period (other than any non-cash Consolidated Interest Expense attributable
to any amortization or write-off of deferred financing costs); provided that, in making such computation:

 

(i)         if
the Company or any Subsidiary:

 

(a)        has
Incurred any Indebtedness subsequent to the commencement of the period for
which the Consolidated EBITDA Ratio is being calculated and on or prior to the
date on which the event for which the calculation of the Consolidated EBITDA
Ratio is made, then the Consolidated EBITDA Ratio will be calculated giving pro
forma effect to such Incurrence of Indebtedness and the use of the proceeds
therefrom as if the same had occurred at the beginning of the applicable
four-quarter reference period (except that in making such computation, 

 

4

 

the amount of Indebtedness under any revolving credit
facility outstanding on the date of such calculation will be deemed to be:

 

(1)       the
average daily balance of such Indebtedness during such four fiscal quarters or
such shorter period for which such facility was outstanding; or

 

(2)       if such
facility was created after the end of such four fiscal quarters, the average
daily balance of such Indebtedness during the period from the date of creation
of such facility to the date of such calculation); and

 

the discharge of any other
Indebtedness repaid, repurchased, defeased or otherwise discharged with the
proceeds of such new Indebtedness as if such discharge had occurred on the
first day of such period; or

 

(b)        has
repaid, repurchased, defeased or otherwise discharged any Indebtedness since
the beginning of the period that is no longer outstanding on such date of
determination or if the transaction giving rise to the need to calculate the
Consolidated EBITDA Ratio involves a discharge of Indebtedness (in each case
other than Indebtedness Incurred under any revolving credit facility unless
such Indebtedness has been permanently repaid and the related commitment
terminated), Indebtedness, Consolidated EBITDA and Consolidated Interest
Expense for such period will be calculated after giving effect on a pro forma
basis to such discharge of such Indebtedness, including with the proceeds of
such new Indebtedness, as if such discharge had occurred on the first day of
such period.

 

(ii)           the
Consolidated Interest Expense attributable to interest on any Indebtedness
computed on a pro forma basis and bearing a floating interest rate shall be
computed as if the rate in effect on the date of computation had been the
applicable rate for the entire period; and

 

(iii)          with
respect to any Indebtedness which bears, at the option of such Person, a fixed
or floating rate of interest, such Person shall apply, at its option, either
the fixed or floating rate.

 

“Consolidated Interest Expense” of any Person means, without
duplication, for any period, as applied to any Person: (i) the sum of
(a) the aggregate of the interest expense on Indebtedness of such Person
and its consolidated Subsidiaries for such period, on a consolidated basis,
including, without limitation: (1) amortization of debt discount;
(2) the net cost under Interest Rate Protection Agreements (including
amortization of discounts); (3) the interest portion of any deferred
payment obligation; and (4) accrued interest; plus (b) the interest component of the Capital Lease
Obligations paid, accrued and/or scheduled to be paid or accrued by such Person
and its consolidated Subsidiaries during such period  (other than any contingent rent paid on
Capital Lease Obligations that is deemed to be interest for purposes of GAAP or
any interest expense attributable to Deemed Capitalized Leases), minus (ii) the cash interest income 

 

5

 

(exclusive of deferred
financing fees) of such Person and its consolidated Subsidiaries during such
period, in each case as determined in accordance with GAAP consistently
applied.

 

“Consolidated Net Income (Loss)” means, with respect to any
specified Person for any period, the aggregate of the Net Income of such Person
and its Subsidiaries for such period, on a consolidated basis, determined in
accordance with GAAP, provided, however,
in the case of the Company and its Subsidiaries, (i) Consolidated Net
Income shall not include management fees from Unrestricted Subsidiaries except
to the extent actually received by the Company and its Subsidiaries, (ii) accrued
but unpaid compensation expenses related to any stock appreciation, restricted
stock or stock option plans shall not be deducted until such time as such
expenses result in a cash expenditure and (iii) compensation expenses
related to tax payment plans implemented by the Company from time to time in
connection with the exercise and/or repurchase of restricted stock or stock
options shall not be deducted from Net Income to the extent of the related tax
benefits arising therefrom; provided,
further, that: (1) the Net Income of any Person that is not a
Subsidiary or that is accounted for by the equity method of accounting will be
included only to the extent of the amount of dividends, distributions or other
payments paid in cash to the specified Person or a Subsidiary of the specified
Person (or, in the case of a loss, only to the extent funded with cash from the
specified Person or a Subsidiary of the specified Person); and (2) any
non-cash goodwill or other intangible asset impairment charges incurred
subsequent to the Issue Date resulting from the application of SFAS No. 142
(or similar pronouncements) shall be excluded.

 

“Construction Indebtedness” means Indebtedness incurred by
the Company or its Subsidiaries in connection with the construction of motion
picture theatres or screens.

 

“Continuing
Directors” means,
as of any date of determination, any member of the Board of Directors who: (1) was
a member of the Board of Directors on the date of this Indenture; (2) was
nominated for election or elected to the Board of Directors with the approval
of a majority of the Continuing Directors who were members of such Board of
Directors at the time of such nomination or election; or (3) was nominated
for election pursuant to the provisions of the Stockholders Agreement as in
effect on the date of this Indenture.

 

“Corporate Trust Office” means the office of the Trustee at
which at any particular time its corporate trust business shall be principally
administered, which office at the date of execution of this Indenture is
located at Corporate Trust Services, 625 Marquette Ave., 11th Floor, MAC N9311-110, Minneapolis, Minnesota
55479, Attention:   Richard Prokosch.

 

“Credit Agreement” means that certain Sixth Amended and
Restated Credit Agreement, dated as of May 19, 2010, among Regal Cinemas
Corporation, a Delaware corporation, the lenders and issuers party thereto
party thereto from time to time, Credit Suisse AG, Cayman Islands Branch, as
administrative agent, and the other agents thereto, and any related notes,
collateral documents, letters of credit, guarantees and other documents, and
any appendices, exhibits or schedules to any of the foregoing, as any or all of
such agreements may be amended, restated, modified or supplemented from time to
time, together with any extensions, revisions, increases, refinancings,
renewals, refundings, restructurings or replacements thereof.

 

6

 

“Credit Facilities” means one or more (i) debt
facilities or commercial paper facilities, providing for revolving credit
loans, term loans, receivables financing (including through the sale of
receivables to lenders or to special purpose entities formed to borrow from
lenders against such receivables) or letters of credit, including, without
limitation, the Credit Agreement, (ii) debt securities, indentures or
other forms of debt financing (including convertible or exchangeable debt
instruments or bank guarantees or bankers’ acceptances), or
(iii) instruments or agreements evidencing any other Indebtedness, in each
case, with the same or different borrowers or issuers and, in each case, as
amended, supplemented, modified, extended, restructured, renewed, refinanced,
restated, replaced or refunded in whole or in part from time to time.

 

“Currency Hedging Obligations” means the obligations of any
Person pursuant to an arrangement designed to protect such Person against
fluctuations in currency exchange rates.

 

“Custodian”
means any receiver, interim receiver, receiver and manager, trustee, assignee,
liquidator, sequestrate or similar official under any Bankruptcy Law or any
other person with like powers.

 

“DCIP” means Digital Cinema Implementation Partners, LLC, a
Delaware limited liability company, and any similar Person with a primary
business purpose of facilitating the implementation of digital cinemas in
theatres and agreements and arrangements with respect to the financing of
digital cinema and any Person that is a direct or indirect parent thereof and
has no independent operations.

 

“Deemed Capitalized Leases” means obligations of the Company
or any Subsidiary of the Company that are classified as “capital lease
obligations” under GAAP due to the application of Emerging Issues Task Force
Regulation 97-10 or any subsequent pronouncement having similar effect and,
except for such regulation or pronouncement, such obligation would not
constitute Capital Lease Obligations.

 

“Default” means any event which is, or after notice or the
passage of time or both, would be, an Event of Default.

 

“Digital Projector Financing” means any financing arrangement
in respect of digital projector equipment for use in the ordinary course of
business in theatres owned, leased or operated by the Company and its
Subsidiaries.

 

“DTC” means The Depository Trust Company, a New York
corporation, and its successors.

 

“Equity Interests” means Capital Stock and all warrants,
options or other rights to acquire Capital Stock (but excluding any debt
security that is convertible into, or exchangeable for, Capital Stock).

 

“Equity Offering” means a public or private sale for cash by
the Company or of a direct or indirect parent of the Company (the proceeds of
which have been contributed to the Company) of common stock or preferred stock
(other than Redeemable Capital Stock), or options, warrants or rights with
respect to such Person’s common stock or preferred stock (other 

 

7

 

than Redeemable Capital
Stock), other than public offerings with respect to such Person’s common stock,
preferred stock (other than Redeemable Capital Stock), or options, warrants or
rights, registered on Form S-4 or S-8.

 

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

 

“Existing Notes” means (i) the 6.25% convertible senior
notes due 2011 issued by the Company, (ii) the 8.625% senior notes due
2019 issued by Regal Cinemas, and (iii) the 9.375% senior subordinated
notes due 2012 issued by Regal Cinemas.

 

“Fair Market Value” means, with respect to any asset or
property, the sale value that would be obtained in an arm’s-length transaction
between an informed and willing seller under no compulsion to sell and an
informed and willing buyer under no compulsion to buy.

 

“GAAP” means generally accepted accounting principles in the
United States as in effect on the Issue Date, consistently applied.

 

“Government Securities” means direct obligations (or
certificates representing an ownership interest in such obligations) of, or
obligations guaranteed by, the United States of America (including any agency
or instrumentality thereof) for the payment of which the full faith and credit
of the United States of America is pledged and which are not callable or
redeemable at the issuer’s option.

 

“Guarantee” means, with respect to any Person, any
obligation, contingent or otherwise, of such Person directly or indirectly
guaranteeing any Indebtedness or other obligation of any other Person and,
without limiting the generality of the foregoing, any obligation, direct or
indirect, contingent or otherwise, of such Person: (i) to purchase or pay
(or advance or supply funds for the purchase or payment of) such Indebtedness
or other obligation of such other Person (whether arising by virtue of
partnership arrangements, or by agreements to keep-well, to purchase assets,
goods, securities or services, to take-or-pay, or to maintain financial
statement conditions or otherwise); or (ii) entered into for purposes of
assuring in any other manner the obligee of such Indebtedness or other
obligation of the payment thereof or to protect such obligee against loss in
respect thereof (in whole or in part); provided
that the term “Guarantee” shall not include endorsements for collection or
deposit in the ordinary course of business. The term “Guarantee” used as a verb
has a corresponding meaning.

 

“Guaranteed Indebtedness” of any Person means, without
duplication, all Indebtedness of any other Person referred to in the definition
of Indebtedness and all dividends of other Persons for the payment of which, in
either case, such Person is directly or indirectly responsible or liable as
obligor, guarantor or otherwise.

 

“Guarantor” means each Subsidiary of the Company that provides
a Subsidiary Guarantee in accordance with the Indenture; provided that upon the
release or discharge of such Subsidiary from its Subsidiary Guarantee in
accordance with the Indenture, such Subsidiary shall cease to be a Guarantor.

 

“Guarantor Subordinated Obligation” means, with respect to a
Guarantor, any Indebtedness of such Guarantor (whether outstanding on the Issue
Date or thereafter Incurred) 

 

8

 

which is expressly subordinate
in right of payment to the obligations of such Guarantor under its Guarantee
pursuant to a written agreement.

 

“Hedging Obligation” of any Person means any Currency Hedging
Obligation entered into solely to protect the Company or any of its
Subsidiaries from fluctuations in currency exchange rates and not to speculate
on such fluctuations and any obligations of such Person pursuant to any
Permitted Interest Rate Protection Agreement.

 

“Holder” means the Person in whose name a Security is
registered on the Security register described in Section 2.04 as the
registered holder of any Security.

 

“Incur” means, with respect to any Indebtedness or other
obligation of any Person, to create, issue, incur (by merger, conversion,
exchange or otherwise), extend, assume, Guarantee or become liable in respect
of such Indebtedness or other obligation or the recording, as required pursuant
to GAAP or otherwise, of any such Indebtedness or obligation on the balance
sheet of such Person (and “Incurrence”
and “Incurred” shall have
meanings correlative to the foregoing); provided,
however, that a change in GAAP
that results in an obligation (including, without limitation, preferred stock,
temporary equity, mezzanine equity or similar classification) of such Person
that exists at such time, and is not theretofore classified as Indebtedness,
becoming Indebtedness shall not be deemed an Incurrence of such Indebtedness; provided further, however, that any Indebtedness or other
obligations of a Person existing at the time such Person becomes a Subsidiary
(whether by merger, consolidation, acquisition or otherwise) shall be deemed to
be Incurred by such Subsidiary at the time it becomes a Subsidiary; and provided further, however, that solely for purposes of
determining compliance with Section 4.05, amortization of debt discount
shall not be deemed to be the Incurrence of Indebtedness, provided that in the case of Indebtedness
sold at a discount, the amount of such Indebtedness Incurred shall at all times
be the aggregate principal amount at stated maturity.

 

“Indebtedness” means, with respect to any Person, without
duplication: (i) all indebtedness of such Person for borrowed money or for
the deferred purchase price of property or services, excluding (x) any
trade payables and other accrued current liabilities Incurred in the ordinary
course of business and (y) Deemed Capitalized Leases, but including,
without limitation, all obligations of such Person in connection with any
letters of credit and acceptances issued under letter of credit facilities,
acceptance facilities or other similar facilities, now or hereafter
outstanding; (ii) all obligations of such Person evidenced by bonds,
notes, debentures or other similar instruments; (iii) all indebtedness
created or arising under any conditional sale or other title retention agreement
with respect to property acquired by such Person (even if the rights and
remedies of the seller or lender under such agreement in the event of default
are limited to repossession or sale of such property), but excluding trade
accounts payable arising in the ordinary course of business; (iv) all
indebtedness referred to in clauses (i) through (iii) above of
other Persons and all dividends of other Persons, the payment of which is
secured by (or for which the holder of such indebtedness has an existing right,
contingent or otherwise, to be secured by) any Lien upon or in property
(including, without limitation, accounts and contract rights) owned by such
Person, even though such Person has not assumed or become liable for the
payment of such indebtedness; (v) all Guaranteed Indebtedness of such
Person; (vi) all obligations under Interest Rate Protection Agreements of
such Person; (vii) all Currency Hedging Obligations of such Person;
(viii) all Capital Lease Obligations of such Person; and 

 

9

 

(ix) any amendment,
supplement, modification, deferral, renewal, extension or refunding of any
liability of the types referred to in clauses (i) through
(viii) above.

 

“Indenture” means this instrument as originally executed (including
all exhibits and schedules hereto) and as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof.

 

“Interest Rate Protection Agreement” means any interest rate
protection agreement, interest rate future agreement, interest rate option
agreement, interest rate swap agreement, interest rate cap agreement, interest
rate collar agreement, interest rate hedge agreement, option or future contract
or other similar agreement or arrangement designed to protect the Company or
any of its Subsidiaries against fluctuations in interest rates.

 

“Investment Grade Rating” means a rating equal to or higher
than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by
S&P, or an equivalent rating by any other Rating Agency.

 

“Issue Date” means August 16, 2010.

 

“Lien” means any mortgage, lien (statutory or other), pledge,
security interest, encumbrance, claim, hypothecation, assignment for security,
deposit arrangement or preference or other security agreement of any kind or
nature whatsoever. A Person shall be deemed to own subject to a Lien any
property which it has acquired or holds subject to the interest of a vendor or
lessor under any conditional sale agreement, capital lease or other title
retention agreement relating to Indebtedness of such Person. The right of a
distributor to the return of its film held by a Person under a film licensing
agreement is not a Lien as used herein. Reservation of title under an operating
lease by the lessor and the interest of the lessee therein are not Liens as
used herein.

 

“Maturity” means, with respect to any Security, the date on
which the principal of such Security becomes due and payable as provided in
such Security or this Indenture, whether at the Stated Maturity or by
declaration of acceleration, call for redemption or otherwise.

 

“Moody’s” means Moody’s Investors Service, Inc. or any
successor to the rating agency business thereof.

 

“NCM”
means National
CineMedia, Inc., or its subsidiary National CineMedia, LLC, and any
successor entities thereto, respectively.

 

“Net Cash Proceeds,” with respect to any issuance or sale of
Capital Stock, means the cash proceeds of such issuance or sale net of attorneys’
fees, accountants’ fees, underwriters’ or placement agents’ fees, listing fees,
discounts or commissions and brokerage, consultant and other fees and charges
actually Incurred in connection with such issuance or sale and net of taxes
paid or payable as a result of such issuance or sale (after taking into account
any available tax credit or deductions and any tax sharing arrangements).

 

“Net Income” means, with respect to any specified Person, the
net income (loss) of such Person, determined in accordance with GAAP and before
any reduction in respect of preferred stock dividends, excluding, however, any
gain or loss (net of related costs, fees, 

 

10

 

expenses and with any related
provision for taxes on such gain or loss) realized in connection with: (a) any
asset sale or (b) the disposition of any securities by such Person or any
of its Subsidiaries or the extinguishment of any Indebtedness of such Person or
any of its Subsidiaries.

 

“Net Senior Secured Indebtedness” of any Person means, as of
any date of determination, (a) the aggregate amount of Senior Indebtedness
secured by a Lien (other than Capital Lease Obligations) of the Company and its
Subsidiaries as of such date, less (b) cash and Cash Equivalents of the
Company and its Subsidiaries, in each case determined on a consolidated basis
in accordance with GAAP.

 

“Non-Recourse Indebtedness” means Indebtedness as to which:
(i) none of the Company or any of its Subsidiaries: (a) provides
credit support (including any undertaking, agreement or instrument which would
constitute Indebtedness); or (b) is directly or indirectly liable.

 

“Obligations” means any principal (including reimbursement
obligations and guarantees), premium, if any, interest (including interest
accruing on or after the filing of, or which would have accrued but for the
filing of, any petition in bankruptcy or for reorganization relating to the
Company whether or not a claim for post-filing interest is allowed in such
proceedings), penalties, fees, expenses, indemnifications, reimbursements,
claims for rescission, damages, gross-up payments and other liabilities payable
under the documentation governing any Indebtedness or otherwise.

 

“Officer” means the Chief Executive Officer, any Executive
Vice President, any Senior Vice President and the Chief Financial Officer of
the Company.

 

“Officers’ Certificate” means a certificate signed by two
Officers.  Each such certificate shall include the statements provided for
in TIA Section 314(e) to the extent applicable.

 

“Opinion of Counsel” means a written opinion of counsel to
the Company or any other Person reasonably satisfactory to the Trustee.

 

“Permitted Holder” means Anschutz Company and any of its
Affiliates.

 

“Permitted Indebtedness” means the following:

 

(i)            Indebtedness
of the Company in respect of the Initial Securities issued on the Issue Date;

 

(ii)           Indebtedness
of the Company or any Subsidiary under Credit Facilities together with the
Guarantees thereunder and the issuance and creation of letters of credit and
bankers’ acceptances thereunder (with letters of credit and bankers’
acceptances being deemed to have a principal amount equal to the face amount
thereof) in an aggregate principal amount at any one time outstanding not to
exceed $1,850.0 million;

 

11

 

(iii)          Indebtedness
of the Company and its Subsidiaries under the Existing Notes;

 

(iv)          Indebtedness
of the Company or any of its Subsidiaries outstanding on the Issue Date (other
than the Existing Notes or Indebtedness outstanding under the Credit Facility);

 

(v)           Indebtedness
of the Company or any of its Subsidiaries consisting of Permitted Interest Rate
Protection Agreements;

 

(vi)          Indebtedness
of the Company or any of its Subsidiaries to any one or the other of them;

 

(vii)         Indebtedness
Incurred to renew, extend, refinance or refund (each, a “refinancing”)
the Existing Notes or any other Indebtedness outstanding on the Issue Date
(including the Initial Securities) in an aggregate principal amount not to
exceed the principal amount of the Indebtedness so refinanced plus the amount
of any premium required to be paid in connection with such refinancing pursuant
to the terms of the Indebtedness so refinanced or the amount of any premium reasonably
determined by the Company as necessary to accomplish such refinancing by means
of a tender offer or privately negotiated repurchase, plus the expenses of the
Company incurred in connection with such refinancing;

 

(viii)        Indebtedness
of any Subsidiary Incurred in connection with the Guarantee of any Indebtedness
of the Company or the Guarantors in accordance with the provisions of this
Indenture; provided that in the event such
Indebtedness that is being Guaranteed is a Subordinated Obligation or Guarantor
Subordinated Obligation, then the related Guarantee shall be subordinated in
right of payment to any Subsidiary Guarantee;

 

(ix)           Indebtedness
relating to Currency Hedging Obligations entered into solely to protect the
Company or any of its Subsidiaries from fluctuations in currency exchange rates
and not to speculate on such fluctuations;

 

(x)            Capital
Lease Obligations of the Company or any of its Subsidiaries;

 

(xi)           Indebtedness
of the Company or any of its Subsidiaries in connection with one or more
standby letters of credit or performance bonds issued in the ordinary course of
business or pursuant to self-insurance obligations;

 

(xii)          Indebtedness
represented by property, liability and workers’ compensation insurance (which
may be in the form of letters of credit);

 

(xiii)         Acquired
Indebtedness; provided that such
Indebtedness, if incurred by the Company, would be in compliance with
Section 4.05;

 

12

 

(xiv)        Indebtedness
of the Company or any of its Subsidiaries to an Unrestricted Subsidiary for
money borrowed; provided that
such Indebtedness is subordinated in right of payment to the Securities and the
Weighted Average Life of such Indebtedness is greater than the Weighted Average
Life of the Securities;

 

(xv)         Construction
Indebtedness in an aggregate principal amount that does not exceed $100.0
million at any time outstanding;

 

(xvi)        Indebtedness
of the Company or a Subsidiary not otherwise permitted to be Incurred pursuant
to clauses (i) through (xv) above which, together with any other
Indebtedness Incurred pursuant to this clause (xvi), has an aggregate principal
amount that does not exceed $500.0 million at any time outstanding; and

 

(xvii)       Indebtedness
incurred by the Company or any of its Subsidiaries with respect to Digital
Projector Financing in an aggregate principal amount incurred not to exceed
$200.0 million.

 

“Permitted Interest Rate Protection Agreements” means, with
respect to any Person, Interest Rate Protection Agreements entered into in
the ordinary course of business by such Person that are designed to protect
such Person against fluctuations in interest rates with respect to Permitted
Indebtedness and that have a notional amount no greater than the payment due
with respect to Permitted Indebtedness hedged thereby.

 

“Permitted Liens” means, with respect to any Person:

 

(i)            Liens
on the property and assets of the Company and any Guarantors securing
Indebtedness and Guarantees permitted to be Incurred under this Indenture
(other than Subordinated Obligations and Guarantor Subordinated Obligations) in
an aggregate principal amount not to exceed the greater of (a) the maximum
principal amount of Indebtedness that, as of the date such Indebtedness was
Incurred, and after giving effect to the Incurrence of such Indebtedness and
the application of proceeds therefrom on such date, would not cause the Senior
Secured Leverage Ratio of the Company to exceed 2.75 to 1.00 and (b) the
aggregate principal amount of Indebtedness permitted to be Incurred pursuant to
clause (ii) of the definition of “Permitted Indebtedness;” provided that in each case the Company may elect pursuant to
an Officers’ Certificate delivered to the Trustee to treat all or any portion
of the commitment under any Indebtedness as being Incurred at such time, in
which case any subsequent Incurrence of Indebtedness under such commitment
shall not be deemed, for purposes of this clause (i), to be an Incurrence at
such subsequent time;

 

(ii)           pledges
or deposits by such Person under workmen’s compensation laws, unemployment
insurance laws or similar legislation, or good faith deposits in connection
with bids, tenders, contracts (other than for the payment of Indebtedness) or
leases to which such Person is a party, or deposits to secure public or
statutory obligations of such Person or deposits of cash or United 

 

13

 

States government bonds to secure surety or appeal
bonds to which such Person is a party, or deposits as security for contested taxes
or import or customs duties or for the payment of rent, in each case Incurred
in the ordinary course of business;

 

(iii)          Liens
imposed by law, including carriers’, warehousemen’s and mechanics’ Liens and
other similar Liens, on the property of the Company or any Subsidiary, in each
case arising in the ordinary course of business and securing payment of
obligations that are not more than 60 days past due, or are being contested in
good faith by appropriate proceedings if a reserve or other appropriate provisions,
if any, as shall be required by GAAP shall have been made in respect thereof;

 

(iv)          Liens
for taxes, assessments or other governmental charges not yet subject to
penalties for non-payment or which are being contested in good faith by
appropriate proceedings provided appropriate reserves required pursuant to GAAP
have been made in respect thereof;

 

(v)           Liens
on the Capital Stock of Unrestricted Subsidiaries;

 

(vi)          Liens
in favor of issuers of surety or performance bonds or letters of credit or bankers’
acceptances issued pursuant to the request of and for the account of such
Person in the ordinary course of its business; provided,
however, that such letters of credit do
not constitute Indebtedness;

 

(vii)         encumbrances,
ground leases, easements or reservations of, or rights of others for, licenses,
rights of way, sewers, electric lines, telegraph and telephone lines and other
similar purposes, or zoning, building codes or other restrictions (including,
without limitation, minor defects or irregularities in title and similar
encumbrances) as to the use of real properties or liens incidental to the
conduct of the business of such Person or to the ownership of its properties
which do not in the aggregate materially adversely affect the value of said properties
or materially impair their use in the operation of the business of such Person;

 

(viii)        Liens
securing Hedging Obligations so long as the related Indebtedness is, and is
permitted to be under this Indenture, secured by a Lien on the same property
securing such Hedging Obligation;

 

(ix)           leases,
licenses, subleases and sublicenses of assets (including, without limitation,
real property and intellectual property rights) which do not materially
interfere with the ordinary conduct of the business of the Company and any of
its Subsidiaries taken as a whole;

 

(x)            judgment
Liens not giving rise to an Event of Default so long as such Lien is adequately
bonded and any appropriate legal proceedings which may have been duly initiated
for the review of such judgment have not been finally terminated or the period
within which such proceedings may be initiated has not expired;

 

14

 

(xi)           Liens
for the purpose of securing the payment of all or a part of the purchase price of
purchase money obligations or other payments Incurred to finance the
acquisition, improvement or construction of, assets or property acquired or
constructed in the ordinary course of business provided that:

 

(a)               the aggregate principal amount of Indebtedness
(excluding Acquisition Indebtedness) secured by such Liens does not exceed the
cost of the assets or property so acquired or constructed and such Indebtedness
(excluding Acquisition Indebtedness) does not exceed $100.0 million in the
aggregate at any one time outstanding and does not exceed the cost of assets or
property so acquired or constructed (provided,
however, that Deemed Capitalized
Leases shall not be subject to this clause (xi)(a)); and

 

(b)              such
Liens are created within 180 days of construction or acquisition of such assets
or property and do not encumber any other assets or property of the Company or
any Subsidiary other than such assets or property and assets affixed or
appurtenant thereto;

 

(xii)          Liens
arising solely by virtue of any statutory or common law provisions relating to
banker’s Liens, rights of set-off or similar rights and remedies as to deposit
accounts or other funds maintained with a depositary institution;

 

(xiii)         Liens
arising from Uniform Commercial Code financing statement filings regarding
operating leases entered into by the Company and its Subsidiaries in the
ordinary course of business;

 

(xiv)        Liens
existing on the Issue Date (excluding Liens relating to obligations under the
Credit Facilities and Liens of the kind referred to in clause (xi) above);

 

(xv)         Liens
on property or shares of stock of a Person at the time such Person becomes a
Subsidiary; provided, however, that such Liens are not created, Incurred
or assumed in connection with, or in contemplation of, such other Person
becoming a Subsidiary; provided further,
however, that any such Lien may not
extend to any other property owned by the Company or any Subsidiary;

 

(xvi)        Liens
on property at the time the Company or a Subsidiary acquired the property,
including any acquisition by means of a merger or consolidation with or into
the Company or any Subsidiary; provided, however, that such Liens are not
created, Incurred or assumed in connection with, or in contemplation of,
such acquisition; provided further, however, that such Liens may not extend to
any other property owned by the Company or any Subsidiary;

 

(xvii)       Liens
securing Indebtedness or other obligations of a Subsidiary owing to the Company
or another Subsidiary;

 

(xviii)      Liens
securing the Securities and any Subsidiary Guarantees;

 

15

 

(xix)         Liens
securing Indebtedness Incurred to refinance Indebtedness that was previously so
secured (other than Liens Incurred pursuant to clauses (i), (xxii) or
(xxiii)), provided that any such Lien is limited to all or part of the same
property or assets (plus improvements, accessions, proceeds or dividends or
distributions in respect thereof) that secured (or, under the written
arrangements under which the original Lien arose, could secure) the
Indebtedness being refinanced;

 

(xx)          any
interest or title of a lessor under any Capital Lease Obligation or operating
lease;

 

(xxi)         Liens
securing Construction Indebtedness not to exceed $100.0 million;

 

(xxii)        Liens
securing letters of credit in an amount not to exceed $30.0 million in the
aggregate at any one time; and

 

(xxiii)       other
Liens securing Indebtedness in an amount not to exceed $50.0 million in the
aggregate at any one time.

 

“Person” means any individual, corporation, partnership,
limited liability company, joint venture, association, joint stock company,
trust, estate, unincorporated organization or government or any agency or
political subdivision thereof.

 

“Preferred Stock” as applied to the Capital Stock of any
corporation, means Capital Stock of any class or classes (however designated)
which is preferred as to the payment of dividends, or as to the distribution of
assets upon any voluntary or involuntary liquidation or dissolution of such
corporation, over shares of Capital Stock of any other class of such
corporation.

 

“Rating
Agencies” means
Moody’s and S&P or if Moody’s or S&P or both shall not make a rating on
the Securities publicly available, a nationally recognized statistical rating
agency or agencies, as the case may be, selected by the Company that shall be
substituted for Moody’s or S&P or both, as the case may be.

 

“Redeemable Capital Stock” means any Capital Stock that,
either by its terms, by the terms of any security into which it is convertible
or exchangeable or otherwise, is or upon the happening of an event or passage
of time would be required to be redeemed prior to the final Stated Maturity of
the Securities or is mandatorily redeemable at the option of the holder thereof
at any time prior to such final Stated Maturity (except for any such Capital
Stock that would be required to be redeemed or is redeemable at the option of
the holder if the issuer thereof may redeem such Capital Stock for
consideration consisting solely of Capital Stock that is not Redeemable Capital
Stock), or is convertible into or exchangeable for debt securities at any time
prior to such final Stated Maturity at the option of the holder thereof.

 

“Regal
Cinemas” means Regal Cinemas Corporation, a Delaware corporation,
and any successor entities thereto.

 

16

 

“Registration Rights Agreement” means any registration rights
agreement executed in connection with an offering of any Additional Securities.

 

“Restricted Payments” has the meaning set forth in
Section 4.06.

 

“S&P” means Standard & Poor’s Ratings Service or
any successor to the rating agency business thereof.

 

“SEC” means the Securities and Exchange Commission.

 

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

 

“Senior Indebtedness” means, whether outstanding on the Issue
Date or thereafter issued, created, Incurred or assumed, all amounts
payable by the Company and its Subsidiaries under or in respect of Indebtedness
of the Company and its Subsidiaries, including the Securities, and premiums and
accrued and unpaid interest (including interest accruing on or after the filing
of any petition in bankruptcy or for reorganization relating to the Company or
any of its Subsidiaries at the rate specified in the documentation with respect
thereto whether or not a claim for post filing interest is allowed in such
proceeding) and fees relating thereto;
provided, however,
that Senior Indebtedness will not include:

 

(i)         any
obligation of the Company to any Subsidiary or any obligation of a Subsidiary
to the Company or another Subsidiary;

 

(ii)               any
liability for Federal, state, foreign, local or other taxes owed or owing by
the Company or any of its Subsidiaries;

 

(iii)               any
accounts payable or other liability to trade creditors arising in the ordinary
course of business (including Guarantees thereof or instruments evidencing such
liabilities);

 

(iv)               any
Indebtedness, Guarantee or obligation of the Company or any of its Subsidiaries
that is expressly subordinate or junior in right of payment to the notes or any
Subsidiary Guarantee; or

 

(v)                any
Capital Stock.

 

“Senior Secured Leverage Ratio” of any Person means, for any
period, the ratio of (a) Net Senior Secured Indebtedness of such Person
and its Subsidiaries as of the date of determination to (b) Consolidated
EBITDA of such Person for the four fiscal quarters for which internal financial
statements are available immediately preceding the date on which such
additional Indebtedness is Incurred; provided,
however, that if the Company or
any Subsidiary:

 

(i)         has
Incurred any Indebtedness since the beginning of such period that remains
outstanding on such date of determination or if the transaction giving rise to
the need to calculate the Senior Secured Leverage Ratio is an Incurrence of
Indebtedness, Indebtedness at the end of such period, Consolidated EBITDA
and Consolidated Interest Expense for such period will be calculated after
giving 

 

17

 

effect on a pro forma basis to such Indebtedness as if
such Indebtedness had been Incurred on the first day of such period (except
that in making such computation, the amount of Indebtedness under any revolving
credit facility outstanding on the date of such calculation will be deemed to
be:

 

(a)        the
average daily balance of such Indebtedness during such four fiscal quarters or
such shorter period for which such facility was outstanding; or

 

(b)        if
such facility was created after the end of such four fiscal quarters, the
average daily balance of such Indebtedness during the period from the date of
creation of such facility to the date of such calculation); and

 

the discharge of any other
Indebtedness repaid, repurchased, defeased or otherwise discharged with the
proceeds of such new Indebtedness as if such discharge had occurred on the
first day of such period; or

 

(ii)        has
repaid, repurchased, defeased or otherwise discharged any Indebtedness since
the beginning of the period that is no longer outstanding on such date of
determination or if the transaction giving rise to the need to calculate the
Senior Secured Leverage Ratio involves a discharge of Indebtedness (in each
case other than Indebtedness Incurred under any revolving credit facility
unless such Indebtedness has been permanently repaid and the related commitment
terminated), Indebtedness, Consolidated EBITDA and Consolidated Interest
Expense for such period will be calculated after giving effect on a pro forma
basis to such discharge of such Indebtedness, including with the proceeds of
such new Indebtedness, as if such discharge had occurred on the first day of
such period.

 

“Significant Subsidiary” means any Subsidiary that would be a
“Significant Subsidiary” of the Company within the meaning of Rule 1-02
under Regulation S-X promulgated by the SEC.

 

“Stated Maturity,” when used with respect to any Security or
any installment of interest thereof, means the date specified in such Security
as the fixed date on which the principal of such Security or such installment
of interest is due and payable.

 

“Stockholders
Agreement” means  the  Amended and Restated Stockholders Agreement, dated
May 14, 2002, between the Company and Anschutz Company.

 

“Subordinated Obligation” means any Indebtedness of the
Company that is subordinate or junior in right of payment to the Securities
pursuant to a written agreement.

 

“Subsidiary” of any person means: (i) any corporation of
which more than 50% of the outstanding shares of Capital Stock having ordinary
voting power for the election of directors is owned directly or indirectly by
such Person; and (ii) any partnership, limited liability company,
association, joint venture or other entity in which such Person, directly or
indirectly, has more than a 50% equity interest, and, except as otherwise
indicated herein, references to Subsidiaries shall refer to Subsidiaries of the
Company.  Notwithstanding the foregoing, for purposes hereof, an
Unrestricted Subsidiary shall not be deemed a Subsidiary of the Company other
than for 

 

18

 

purposes of the definition of “Unrestricted
Subsidiary” unless the Company shall have designated in writing to the Trustee
an Unrestricted Subsidiary as a Subsidiary.  A designation of an
Unrestricted Subsidiary as a Subsidiary may not thereafter be rescinded.

 

“Subsidiary Guarantee” means, individually, any Guarantee of
payment of the Securities pursuant to this Indenture by a Guarantor and any
supplemental indenture applicable thereto (including pursuant to Exhibit C),
and, collectively, all such Guarantees.  Any such Subsidiary Guarantee
will be in the form prescribed in this Indenture.

 

“Surviving Entity” has the meaning set forth in
Section 5.01.

 

“Theatre Completion” means any motion picture theatre or
screen which was first opened for business by the Company or a Subsidiary,
including through mergers, acquisitions or consolidations, during any
applicable period.

 

“TIA” means the Trust Indenture Act of 1939 (15
U.S.C.77aaa-77bbbb) as in effect on the Issue Date; provided, however,
that, in the event the TIA is amended after such date, “TIA” means, to the
extent required by any such amendments, the Trust Indenture Act of 1939 as so
amended.

 

“Trust Officer” means any officer within the corporate trust
department of the Trustee (or any successor group of the Trustee) with direct
responsibility for the administration of this Indenture and also means, with
respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of his knowledge of and familiarity with the
particular subject.

 

“Trustee” means the Person named as the “Trustee” in the
first paragraph of this instrument, until a successor Trustee shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee”
shall mean such successor Trustee.

 

“U.S. Dollars,” “United
States Dollars,” “US$”
and the symbol “$” each mean
currency of the United States of America.

 

“Uniform Commercial Code” means the New York Uniform
Commercial Code as in effect from time to time.

 

“Unrestricted Subsidiary” means a Subsidiary of the Company
designated in writing to the Trustee: (i) whose properties and assets, to
the extent they secure Indebtedness, secure only Non-Recourse Indebtedness; and
(ii) that has no Indebtedness other than Non-Recourse Indebtedness; and
(iii) that has no Subsidiaries other than Unrestricted Subsidiaries.  Notwithstanding the foregoing, DCIP shall be
an Unrestricted Subsidiary to the extent the Company acquires additional Equity
Interests in DCIP pursuant to a merger or acquisition such that DCIP becomes a
Subsidiary of the Company.

 

“Voting Stock” of a Person means all classes of Capital Stock
or other interests (including partnership interests) of such Person then
outstanding and normally entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or trustees
thereof.

 

19

 

“Weighted Average Life” means, as of any date, with respect
to any debt security, the quotient obtained by dividing (i) the sum of the
products of the number of years from such date to the dates of each successive
scheduled principal payment (including any sinking fund payment requirements)
of such debt security multiplied by the amount of such principal payment, by
(ii) the sum of all such principal payments.

 

“Wholly Owned Subsidiary” of any Person means a Subsidiary of
such Person, all of the Capital Stock (other than directors’ qualifying shares)
or other ownership interests of which shall at the time be owned by such Person
or by one or more Wholly Owned Subsidiaries of such Person or by such Person
and one or more Wholly Owned Subsidiaries of such Person.

 

Section 1.02           Other
Definitions.

 

	
  Term

  	
   

  	
  Defined in
  Section

  
	
  “Additional Securities”

  	
   

  	
  Recitals

  
	
  “Change of Control Offer”

  	
   

  	
  4.11

  
	
  “Change of Control Payment
  Date”

  	
   

  	
  4.11

  
	
  “Change of Control Purchase
  Price”

  	
   

  	
  4.11

  
	
  “covenant defeasance option”

  	
   

  	
  8.01

  
	
  “Covenant Suspension Event”

  	
   

  	
  4.17

  
	
  “Default Interest Payment
  Date”

  	
   

  	
  2.11

  
	
  “Default Interest Record
  Date”

  	
   

  	
  2.11

  
	
  “Event of Default”

  	
   

  	
  6.01

  
	
  “Exchange Securities”

  	
   

  	
  Recitals

  
	
  “Global Security”

  	
   

  	
  Exhibit A

  
	
  “Guarantor Obligations”

  	
   

  	
  10.01

  
	
  “Initial Securities”

  	
   

  	
  Recitals

  
	
  “legal defeasance option”

  	
   

  	
  8.01

  
	
  “Legal Holiday”

  	
   

  	
  11.08

  
	
  “OID”

  	
   

  	
  2.01

  
	
  “Paying Agent”

  	
   

  	
  2.04

  
	
  “Private Exchange
  Securities”

  	
   

  	
  Recitals

  
	
  “QIB”

  	
   

  	
  Exhibit A

  
	
  “Registered Exchange Offer”

  	
   

  	
  Exhibit A

  
	
  “Registrar”

  	
   

  	
  2.04

  
	
  “Relevant Person”

  	
   

  	
  11.13

  
	
  “Restricted Payments”

  	
   

  	
  4.06(a)

  
	
  “Reversion Date”

  	
   

  	
  4.17

  
	
  “Rule 144A”

  	
   

  	
  Exhibit A

  
	
  “Securities”

  	
   

  	
  Recitals

  
	
  “Securities Custodian”

  	
   

  	
  Exhibit A

  
	
  “Shelf Registration
  Statement”

  	
   

  	
  Exhibit A

  
	
  “Surviving Entity”

  	
   

  	
  5.01(a)

  
	
  “Suspended Covenants”

  	
   

  	
  4.17

  
	
  “Suspension Date”

  	
   

  	
  4.17

  
	
  “Suspension Period”

  	
   

  	
  4.17

  

 

20

 

Section 1.03           Incorporation by Reference of Trust Indenture
Act.  This Indenture shall be
subject to the provisions of the TIA that are required to be a part of this
Indenture and shall, to the extent applicable, be governed by such
provisions.  The following TIA terms have the following meanings:

 

“Commission” means the SEC.

 

“Indenture securities” means
the Securities.

 

“indenture Security Holder”
means a Holder.

 

“indenture to be Qualified”
means this Indenture.

 

“Indenture Trustee” or “institutional
Trustee” means the Trustee.

 

“obligor” on the indenture
securities means the Company and any other obligor on the indenture securities.

 

All other TIA terms used in
this Indenture that are defined by the TIA, defined by TIA reference to another
statute or defined by SEC rule have the meanings assigned to them by such
definitions.

 

Section 1.04           Rules of
Construction.  Unless the context otherwise requires:

 

(a)        a term
has the meaning assigned to it;

 

(b)        an
accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

 

(c)        “or”
is not exclusive;

 

(d)        “including”
means including without limitation;

 

(e)        words
in the singular include the plural and words in the plural include the
singular;

 

(f)         unsecured
Indebtedness shall not be deemed to be subordinate or junior to secured
Indebtedness merely by virtue of its nature as unsecured Indebtedness; and

 

(g)        the
principal amount of any non-interest bearing or other discount security at any
date shall be the principal amount thereof that would be shown on a balance
sheet of the issuer dated such date prepared in accordance with GAAP.

 

21

 

ARTICLE II

 

THE SECURITIES

 

Section 2.01           Amount of Securities; Issuable in Series. 
As provided for in Exhibit A hereto, the aggregate principal amount
of the Securities which may be authenticated and delivered under this Indenture
is unlimited.  All Securities shall be substantially identical in all
respects other than issue prices, issuance dates and denominations.  The
Securities may be issued in one or more series; provided, however,
that any Securities issued with original issue discount (“OID”) for
Federal income tax purposes shall not be issued as part of the same series as
any Securities that are issued with a different amount of OID or are not issued
with OID.

 

Subject to Section 2.03,
the Trustee shall authenticate Initial Securities for original issue on the
Issue Date in the aggregate principal amount of $275,000,000.  With
respect to any Securities issued after the Issue Date (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, Initial Securities pursuant to Section 2.07, 2.09
or 3.06 or Exhibit A), there shall be established in or pursuant to
a resolution of the Board of Directors, and subject to Section 2.03, set
forth, or determined in the manner provided in an Officers’ Certificate, or
established in one or more indentures supplemental hereto, prior to the
issuance of such Securities:

 

(a)        whether
such Securities shall be issued as part of a new or existing series of
Securities and the title of such Securities (which shall distinguish the
Securities of the series from Securities of any other series);

 

(b)        the
aggregate principal amount of such Securities that may be authenticated and
delivered under this Indenture (which shall be calculated without reference to
any Securities authenticated and delivered upon registration of transfer of, or
in exchange for, or in lieu of, other Securities of the same series pursuant to
Section 2.07, 2.09 or 3.06 or Exhibit A or any Securities
which, pursuant to Section 2.03, are deemed never to have been
authenticated and delivered hereunder);

 

(c)        the
issue price and issuance date of such Securities, including the date from which
interest on such Securities shall accrue;

 

(d)        if
applicable, that such Securities shall be issuable in whole or in part in the
form of one or more Global Securities and, in such case, the respective
depositories for such Global Securities, the form of any legend or legends that
shall be borne by any such Global Security in addition to or in lieu of those
set forth in Section 2.3(e) of Exhibit A and any
circumstances in addition to or in lieu of those set forth in Section 2.3
of Exhibit A in which any such Global Security may be exchanged in
whole or in part for Securities registered, and any transfer of such Global
Security in whole or in part may be registered, in the name or names of Persons
other than the depository for such Global Security or a nominee thereof; and

 

(e)        if
applicable, that such Securities shall not be issued in the form of Initial
Securities or Additional Securities, but shall be issued in the form of Private
Exchange Securities or Exchange Securities.

 

22

 

If any of the terms of any
series are established by action taken pursuant to a resolution of the Board of
Directors, a copy of an appropriate record of such action shall be certified by
the Secretary or any Assistant Secretary of the Company and delivered to the
Trustee at or prior to the delivery of the Officers’ Certificate or the trust
indenture supplemental hereto setting forth the terms of the series.

 

Section 2.02           Form and Dating. 
Provisions relating to the Securities are set forth in Exhibit A,
which is hereby incorporated in and expressly made part of this
Indenture.  The Securities of each series and the Trustee’s
certificate of authentication shall be substantially in the form of Appendix
I to Exhibit A which is hereby incorporated in and expressly made a
part of this Indenture. Without limiting the generality of the foregoing,
Securities offered and sold to QIBs in reliance on Rule 144A shall include
the form of assignment set forth in Appendix I to Exhibit A and
Securities offered and sold in offshore transactions in reliance on Regulation
S shall include the form of certificate set forth in Exhibit B. 
The Securities of each series may have notations, legends or endorsements
required by law, stock exchange rule, agreements to which the Company is
subject, if any, or usage; provided that
any such notation, legend or endorsement is in a form reasonably acceptable to
the Company.  Each Security shall be dated the date of its
authentication.  The terms of the Securities of each series set forth in Appendix
I to Exhibit A are part of the terms of this Indenture.

 

Section 2.03           Execution and Authentication. 
Two Officers (or one Officer and the Vice President and Secretary of the
Company) shall sign the Securities for the Company by manual or facsimile
signature.

 

If an Officer whose signature
is on a Security no longer holds that office at the time the Trustee
authenticates the Security, the Security shall be valid nevertheless.

 

At any time and from time to
time after the execution and delivery of this Indenture, the Company may
deliver Securities of any series executed by the Company to the Trustee for
authentication, together with a written order of the Company in the form of an
Officers’ Certificate for the authentication and delivery of such Securities,
and the Trustee in accordance with such written order of the Company shall
authenticate and deliver such Securities.

 

A Security shall not be valid
until an authorized signatory of the Trustee manually signs the certificate of
authentication on the Security.  The signature shall be conclusive
evidence that the Security has been authenticated under this Indenture.

 

The Trustee may appoint an
authenticating agent reasonably acceptable to the Company to authenticate the
Securities.  Unless limited by the terms of such appointment, an
authenticating agent may authenticate Securities whenever the Trustee may do
so.  Each reference in this Indenture to authentication by the Trustee
includes authentication by such agent.  An authenticating agent has the
same rights as any Registrar, Paying Agent or agent for service of notices and
demands.

 

The Trustee shall not be
required to authenticate such Securities if the issue thereof will adversely
affect the Trustee’s own rights, duties, indemnities or immunities under the
Securities and this Indenture.

 

23

 

Section 2.04           Registrar and Paying Agent. 
The Company shall maintain an office or agency where Securities may be
presented for registration of transfer or for exchange (the “Registrar”)
and an office or agency where Securities may be presented for payment (the “Paying
Agent”).  The Registrar shall keep a register of the Securities and of
their transfer and exchange.  The Company may have one or more
co-registrars and one or more additional paying agents.  The term “Paying
Agent” includes any additional paying agent and “Registrar” includes any
co-registrar.

 

The Company shall enter into
an appropriate agency agreement with any Registrar or Paying Agent not a party
to this Indenture, which shall incorporate the terms of the TIA.  The
agreement shall implement the provisions of this Indenture that relate to such
agent.  The Company shall notify the Trustee of the name and address of
any such agent.  If the Company fails to maintain a Registrar or Paying
Agent, the Trustee shall act as such and shall be entitled to appropriate
compensation therefor pursuant to Section 7.07.  The Company or any
of its domestic Wholly Owned Subsidiaries may act as Paying Agent, Registrar or
transfer agent.

 

The Company initially appoints
the Trustee as Registrar and Paying Agent in connection with the Securities.

 

Section 2.05           Paying Agent To Hold Money in Trust. 
Prior to each due date of the principal and interest (including any Additional
Interest) on any Security, the Company shall deposit with the Paying Agent a
sum sufficient to pay such principal and interest so becoming due.  The
Company shall require each Paying Agent (other than the Trustee) to agree in
writing that the Paying Agent shall hold in trust for the benefit of Holders or
the Trustee all money held by the Paying Agent for the payment of principal of
or interest on the Securities and shall notify the Trustee of any default by
the Company or any Guarantor in making any such payment.  If the Company
or a domestic Wholly Owned Subsidiary acts as Paying Agent, it shall segregate
the money held by it as Paying Agent and hold it as a separate trust
fund.  The Company at any time may require a Paying Agent to pay all money
held by it to the Trustee and to account for any funds disbursed by the Paying
Agent.  Upon complying with this Section, the Paying Agent (if other than
the Company or a domestic Wholly Owned Subsidiary) shall have no further
liability for the money delivered to the Trustee.

 

Section 2.06           Holder Lists.  The Trustee
shall preserve in as current a form as is reasonably practicable the most
recent list available to it of the names and addresses of Holders and shall
otherwise comply with TIA Section 312(a).  If the Trustee is not the
Registrar, the Company on its own behalf and on the behalf of each of the
Guarantors shall furnish to the Trustee, in writing at least five Business Days
before each interest payment date and at such other times as the Trustee may
request in writing, a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of Holders and the Company and
the Guarantors shall otherwise comply with TIA Section 312(a).

 

Section 2.07           Replacement Securities.  If a
mutilated security is surrendered to the Registrar or if the Holder of a
Security claims that such Security has been lost, destroyed or wrongfully
taken, the Company shall issue and the Trustee shall authenticate a replacement
Security if the requirements of Section 8-405 of the Uniform Commercial
Code are met and the Holder satisfies any other reasonable requirements of the
Trustee.  If required by the Trustee or

 

24

 

the
Company, such Holder shall furnish an indemnity bond sufficient in the judgment
of the Company and the Trustee to protect the Company, the Trustee, the Paying
Agent, the Registrar and any co-registrar from any loss which any of them may
suffer if a Security is replaced.  The Company and the Trustee may charge
the Holder for their expenses in replacing a Security.

 

Every replacement Security is
an additional obligation of the Company.

 

Section 2.08           Outstanding Securities. 
Securities outstanding at any time are all Securities authenticated by the
Trustee except for those canceled by it, those delivered to it for cancellation
and those described in this Section as not outstanding.  A Security
does not cease to be outstanding because the Company or an Affiliate of the
Company holds the Security.

 

If a Security is replaced
pursuant to Section 2.07, it ceases to be outstanding unless the Trustee
and the Company receive proof satisfactory to them that the replaced Security
is held by a protected purchaser.

 

If the Paying Agent segregates
and holds in trust, in accordance with this Indenture, on a redemption date or maturity
date money sufficient to pay all principal and interest payable on that date
with respect to the Securities (or portions thereof) to be redeemed or
maturing, as the case may be, and the Paying Agent is not prohibited from
paying such money to the Holders on that date pursuant to the terms of this
Indenture, then on and after that date such Securities (or portions thereof)
cease to be outstanding and interest, on them ceases to accrue.

 

Section 2.09           Temporary Securities.  Until
definitive Securities are ready for delivery, the Company may prepare and the
Trustee shall authenticate temporary Securities.  Temporary Securities
shall be substantially in the form of definitive Securities but may have
variations that the Company considers appropriate for temporary
Securities.  Without unreasonable delay, the Company shall prepare and the
Trustee shall authenticate definitive Securities and deliver them in exchange
for temporary Securities.  After the preparation of definitive Securities,
the temporary Securities shall be exchangeable for definitive Securities upon
surrender of the temporary Securities at any office or agency maintained by the
Company for that purpose and such exchange shall be without charge to the
Holder.  Upon surrender for cancellation of any one or more temporary
Securities, the Company shall execute, and the Trustee shall authenticate and
make available for delivery in exchange therefor, one or more definitive
Securities representing an equal principal amount of Securities.  Until so
exchanged, the Holder of temporary Securities shall in all respects be entitled
to the same benefits under this Indenture as a Holder of definitive Securities.

 

Section 2.10           Cancellation.  The Company at
any time may deliver Securities to the Trustee for cancellation.  The
Registrar and the Paying Agent shall forward to the Trustee any Securities
surrendered to them for registration of transfer, exchange or payment. 
The Trustee and no one else shall cancel (subject to the record retention
requirements of the Exchange Act) all Securities surrendered for registration
of transfer, exchange, payment or cancellation and deliver cancelled Securities
to the Company upon a written direction of the Company.  Except as
expressly permitted herein, the Company may not issue new Securities to replace
Securities it has redeemed, paid or delivered to the Trustee for cancellation.

 

25

 

If the Company or any
Guarantor acquires any of the Securities, such acquisition shall not operate as
a redemption or satisfaction of the Indebtedness represented by such Securities
unless and until the same are surrendered to the Trustee for cancellation
pursuant to this Section 2.10.  The Company may not issue new
Securities to replace Securities it has paid or delivered to the Trustee for
cancellation for any reason other than in connection with a registration of
transfer or exchange of such Securities.

 

At such time as all beneficial
interests in a Global Security have either been exchanged for definitive
Securities, transferred, redeemed, repurchased or canceled, such Global
Security shall be returned by DTC to the Trustee for cancellation or retained
and canceled by the Trustee.  At any time prior to such cancellation, if
any beneficial interest in a Global Security is exchanged for definitive
Securities, transferred in exchange for an interest in another Global Security,
redeemed, repurchased or canceled, the principal amount of Securities
represented by such Global Security shall be reduced and an adjustment shall be
made on the books and records of the Trustee (if it is then the Securities
Custodian for such Global Security) with respect to such Global Security, by
the Trustee or the Securities Custodian, to reflect such reduction.

 

Section 2.11           Defaulted Interest.  If the
Company defaults in a payment of interest on the Securities, the Company shall
pay the defaulted interest (plus interest on such defaulted interest at the
rate borne by the Securities to the extent lawful) in any lawful manner. 
The Company shall notify the Trustee in writing of the amount of defaulted
interest proposed to be paid on each Security and the date (not less than 30
days after such notice) of the proposed payment (the “Default Interest
Payment Date”), and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed to be paid in
respect of such defaulted interest or shall make arrangements satisfactory to
the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons
entitled to such defaulted interest as in this clause provided.  Thereupon
the Trustee shall fix a record date (the “Default Interest Record Date”)
for the payment of such defaulted interest, which date shall be not more than
15 days and not less than 10 days prior to the Default Interest Payment Date
and not less than 10 days after the receipt by the Trustee of the notice of the
proposed payment.  The Trustee shall promptly notify the Company of such
Default Interest Record Date, and in the name and at the expense of the
Company, shall cause notice of the proposed payment of such defaulted interest
and the Default Interest Record Date and Default Interest Payment Date therefor
to be given in the manner provided for in Section 11.02, not less than 10
days prior to such Default Interest Record Date.  Notice of the proposed
payment of such defaulted interest and the Default Interest Record Date and
Default Interest Payment Date therefor having been so given, such defaulted
interest shall be paid on the Default Interest Payment Date to the Persons in
whose names the Securities (or their respective predecessor Securities) are
registered at the close of business on such Default Interest Record Date and
shall no longer be payable.

 

The Company may make payment
of any defaulted interest in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities may be listed,
and upon such notice as may be required by such exchange, if, after notice
given by the Company to the Trustee of the proposed payment pursuant to this
clause, such manner of payment shall be deemed practicable by the Trustee.

 

26

 

Subject to the foregoing
provisions of this Section, each Security delivered under this Indenture upon
registration of, transfer of or in exchange for or in lieu of any other
Security shall carry the rights to interest accrued and unpaid, and to accrue, which
were carried by such other Security.

 

Section 2.12           CUSIP Numbers, Common Codes or ISINs. 
The Company in issuing the Securities may use “CUSIP” numbers, “Common Codes”
or “ISINs” (if then generally in use) and, if so, the Trustee shall use “CUSIP”
numbers, “Common Codes” or “ISINs” in notices of redemption as a convenience to
Holders; provided, however, that neither the Company nor the
Trustee shall have any responsibility for any defect in the “CUSIP” number, “Common
Code” or “ISIN” that appears on any Security, check, advice of payment or
redemption notice, and any such notice may state that no representation is made
as to the correctness of such numbers either as printed on the Securities or as
contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Securities, and any such
redemption shall not be affected by any defect in or omission of such
numbers.  The Company shall promptly notify the Trustee in writing of any
change in the CUSIP number, Common Code or ISIN.

 

Section 2.13           Computation of Interest. 
Interest on the Securities shall be computed on the basis of a 360-day year of
twelve 30-day months.

 

ARTICLE III

 

REDEMPTION

 

Section 3.01           Notices to Trustee.  If the
Company elects to redeem Securities pursuant to paragraph 5 of the Securities
(as set forth in Appendix I to Exhibit A), it shall notify the
Trustee in writing of the redemption date, the principal amount of Securities
to be redeemed, the redemption price and that such redemption is being made
pursuant to paragraph 5 of the Securities.

 

The Company shall give notice
to the Trustee provided for in this Section 3.01 at least 45 days but not
more than 60 days before the redemption date unless the Trustee consents to a
shorter period.  Such notice shall be accompanied by an Officers’
Certificate and an Opinion of Counsel from the Company to the effect that such
redemption will comply with the conditions herein.

 

Section 3.02           Selection of Securities To Be Redeemed. 
If fewer than all the Securities are to be redeemed at any time, not more than
60 days prior to the redemption date, the Trustee shall select the Securities
to be redeemed pro rata or by lot or by a method that complies with applicable
legal and securities exchange requirements, if any, and that the Trustee
considers fair and appropriate and in accordance with methods generally used at
the time of selection by fiduciaries in similar circumstances.  The
Trustee shall make the selection from outstanding Securities not previously
called for redemption.  The Trustee may select for redemption portions of
the principal of Securities that have denominations larger than $2,000. 
Securities and portions of them the Trustee selects shall be in amounts of
$2,000 or whole multiples of $1,000 in excess

 

27

 

thereof. 
Provisions of this Indenture that apply to Securities called for redemption
also apply to portions of Securities called for redemption.  The Trustee
shall notify the Company promptly of the Securities or portions of Securities
to be redeemed.

 

Section 3.03       Notice of Redemption.  At
least 30 days but not more than 60 days before a date for redemption of
Securities, the Company shall mail a notice of redemption by first-class mail
to each Holder of Securities to be redeemed at its registered address.

 

The notice shall identify the
Securities (or portion thereof) to be redeemed (including CUSIP numbers if any)
and shall state:

 

(a)        the
redemption date;

 

(b)        the
redemption price;

 

(c)        the
name and address of the Paying Agent;

 

(d)        that
Securities called for redemption must be surrendered to the Paying Agent to
collect the redemption price;

 

(e)        if
fewer than all the outstanding Securities are to be redeemed, or if a Security
is to be redeemed in part only, the identification and principal amounts of the
particular Securities (or portion thereof) to be redeemed;

 

(f)         that,
unless the Company defaults in making such redemption payment or the Paying
Agent is prohibited from making such payment pursuant to the terms of this
Indenture, interest on Securities (or portion thereof) called for redemption
ceases to accrue on and after the redemption date; and

 

(g)        that
no representation is made as to the correctness or accuracy of the CUSIP
number, if any, listed in such notice or printed on the Securities.

 

At the Company’s written
request, the Trustee shall give the notice of redemption in the Company’s name
and at the Company’s expense.  In such event, the Company shall provide
the Trustee with the information required by this Section at least 45 days
before the redemption date, unless the Trustee consents to a shorter period.

 

Section 3.04       Effect of Notice of Redemption. 
Once notice of redemption is mailed, Securities called for redemption become
due and payable on the redemption date and at the redemption price stated in
the notice.  Upon surrender to the Paying Agent, such Securities shall be
paid at the redemption price stated in the notice, plus accrued interest
(including any Additional Interest) to the redemption date (subject to the
right of Holders of record on the relevant record date to receive interest due
on the related interest payment date that is on or prior to the date of
redemption).  Failure to give notice or any defect in the notice to any
Holder shall not affect the validity of the notice to any other Holder.

 

Section 3.05       Deposit of Redemption Price. 
Prior to 10:00 a.m., New York City time, on the redemption date, the
Company shall deposit with the Paying Agent (or, if the

 

28

 

Company
or a domestic Wholly Owned Subsidiary is the Paying Agent, shall segregate and
hold in trust) money sufficient to pay the redemption price of and accrued
interest (including any Additional Interest) (subject to the right of Holders
of record on the relevant record date to receive interest (including any
Additional Interest) due on the related interest payment date that is on or
prior to the date of redemption) on all Securities to be redeemed on that date
other than Securities or portions of Securities called for redemption that have
been delivered by the Company to the Trustee for cancellation.

 

Section 3.06       Securities Redeemed in Part. 
Upon surrender of a Security that is redeemed in part, the Company shall
execute and the Trustee shall authenticate for the Holder (at the Company’s
expense) a new Security equal in principal amount to the unredeemed portion of
the Security surrendered.

 

ARTICLE IV

 

COVENANTS

 

Section 4.01       Payment of Securities.  The
Company shall promptly pay the principal of, premium, if any, and interest
(including any Additional Interest) on the Securities, in immediately available
funds, on the dates and in the manner provided in the Securities and in this
Indenture.  Principal, premium, if any, and interest (including any
Additional Interest) shall be considered paid on the date due if on such date
the Trustee or the Paying Agent holds in accordance with this Indenture money
sufficient to pay all principal, premium, if any, and interest then due and the
Trustee or the Paying Agent, as the case may be, is not prohibited from paying
such money to the Holders on that date pursuant to the terms of this Indenture.

 

The Company shall pay interest
on overdue principal at the rate specified therefore in the Securities, and it
shall pay interest on overdue installments of interest (including any
Additional Interest) at the rate borne by the Securities to the extent lawful.

 

The Company and the Guarantors
will pay any present or future stamp, court or documentary taxes or any other
excise or property taxes, charges or similar levies that arise in any
jurisdiction from the execution, delivery, enforcement or registration of the
Securities, any Subsidiary Guarantees, this Indenture or any other document or
instrument in relation thereof, or the receipt of any payments with respect to
the Securities or any Subsidiary Guarantees, excluding such taxes, charges or
similar levies imposed by any jurisdiction outside of the United States, the
jurisdiction of incorporation of any successor of the Company or any Guarantor
or any jurisdiction in which a Paying Agent is located, other than those
resulting from, or required to be paid in connection with, the enforcement of
the Securities, any Subsidiary Guarantees or any other such document or
instrument following the occurrence of any Event of Default with respect to the
Securities.  The Company or the Guarantors will indemnify the Holders for
any such taxes paid by such Holders.

 

Section 4.02       Corporate Existence.  Subject
to Article V, the Company will do or cause to be done all things necessary
to preserve and keep in full force and effect the corporate existence and
corporate power and authority of the Company and each Guarantor; provided,

 

29

 

however, that the Company shall not be required to preserve
any such corporate existence and corporate power and authority if the Company
shall determine that the preservation thereof is no longer desirable in the
conduct of the business of the Company and its Subsidiaries taken as a whole.

 

Section 4.03      Payment of Taxes and Other Claims. 
The Company will pay or discharge or cause to be paid or discharged, before the
same shall become delinquent,

 

(a)       all material
taxes, assessments and governmental charges levied or imposed upon the Company
or any Subsidiary or upon the income, profits or property of the Company or any
Subsidiary; and

 

(b)      all
material lawful claims for labor, materials and supplies, which, if unpaid,
might by law become a Lien upon the property of the Company or any Subsidiary
that could produce a material adverse effect on the consolidated financial
condition of the Company; provided, however, that the Company shall not be
required to pay or discharge or cause to be paid or discharged any such tax,
assessment, charge or claim whose amount, applicability or validity is being
contested in good faith by appropriate proceedings.

 

Section 4.04       Maintenance of Properties. 
The Company will cause all properties owned by the Company or any Subsidiary or
used or held for use in the conduct of its business or the business of any
Subsidiary to be maintained and kept in good condition, repair and working
order and supplied with all necessary equipment and will cause to be made all
necessary repairs, renewals, replacements, betterments and improvements
thereof, all as in the judgment of the Company may be necessary so that the
business carried on in connection therewith may be properly and advantageously
conducted at all times, except, in every case, as and to the extent that the
Company may be prevented by fire, strikes, lockouts, acts of God, inability to
obtain labor or materials, governmental restrictions, enemy action, civil
commotion or unavoidable casualty or similar causes beyond the control of the
Company; provided, however, that nothing in this
Section 4.04 shall prevent the Company from discontinuing the maintenance
of any such properties if such discontinuance is, in the judgment of the
Company, desirable in the conduct of its business or the business of any
Subsidiary and not disadvantageous in any material respect to the Holders.

 

Section 4.05       Limitation on Consolidated Indebtedness. (a) The
Company shall not, and shall not permit any of its Subsidiaries to, Incur any
Indebtedness (other than Permitted Indebtedness) unless after giving effect to
such event on a pro forma basis the Company’s Consolidated EBITDA Ratio
for the four full fiscal quarters immediately preceding such event for which
internal financial statements are available, taken as one period, is greater
than or equal to 2.00 to 1.00.

 

(b)        For
purposes of determining compliance with this Section 4.05, in the event
that an item of Indebtedness (or any portion thereof) meets the criteria of one
or more of the categories of Permitted Indebtedness or is entitled to be
Incurred pursuant to the ratio set forth in Section 4.05(a) hereof,
the Company shall, in its sole discretion, classify or reclassify, or later
divide, classify or reclassify, such item of Indebtedness (or any portion
thereof) in any manner that complies with this Section 4.05.

 

30

 

Section 4.06       Limitation on Restricted Payments. (a)
The Company shall not, and shall not permit its Subsidiaries to, directly or
indirectly:

 

(i)    declare or
pay any dividend on, or make any distribution in respect of, any shares of the
Company’s or any Subsidiary’s Capital Stock (excluding dividends or
distributions payable in shares of the Company’s Capital Stock or in options,
warrants or other rights to purchase such Capital Stock, but including
dividends or distributions payable in Redeemable Capital Stock or in options,
warrants or other rights to purchase Redeemable Capital Stock (other than dividends
on such Redeemable Capital Stock payable in shares of such Redeemable Capital
Stock)) held by any Person other than the Company or any of its Wholly Owned
Subsidiaries;

 

(ii)   purchase,
redeem or acquire or retire for value any Capital Stock of the Company or any
Affiliate thereof (other than any Wholly Owned Subsidiary of the Company) or
any options, warrants or other rights to acquire such Capital Stock; or

 

(iii)  purchase,
repurchase, redeem, defease or otherwise acquire or retire for value, prior to
scheduled maturity, scheduled repayment or scheduled sinking fund payment, any
Subordinated Obligations or Guarantor Subordinated Obligations (other than the
purchase, repurchase, redemption, defeasance or other acquisition or retirement
of Subordinated Obligations or Guarantor Subordinated Obligations purchased in
anticipation of satisfying a sinking fund obligation, principal installment or
final maturity, in each case due within one year of the date of purchase,
repurchase, redemption, defeasance or other acquisition or retirement);

 

(such payments or any other
actions described in (i), (ii) and (iii) above are collectively
referred to as “Restricted Payments”) unless at the time of and after
giving effect to the proposed Restricted Payment (the amount of any such
Restricted Payment, if other than cash, as determined by the Board of
Directors, whose determination shall be conclusive and evidenced by a Board
Resolution): (A) no Default or Event of Default shall have occurred and be
continuing; (B) the Company could incur $1.00 of additional Indebtedness
(other than Permitted Indebtedness) under the provisions of Section 4.05;
and (C) the aggregate amount of all Restricted Payments declared or made
after the Issue Date (including the proposed Restricted Payment) does not
exceed the sum of (excluding Restricted Payments permitted by Sections
4.06(b)(iii), 4.06(b)(iv), 4.06(b)(v), 4.06(b)(vi), 4.06(b)(vii) and
4.06(b)(ix)):

 

(1)       (x) Consolidated
EBITDA minus (y) 1.70 times Consolidated Interest Expense, each calculated
for the period (taken as one accounting period) from March 28, 2009 to the last
day of the Company’s fiscal quarter preceding the date of the applicable
proposed Restricted Payment; plus

 

(2)       100% of
the aggregate net proceeds, including the Fair Market Value of property other than
cash (as determined by the

 

31

 

Board of Directors, whose determination shall be
conclusive, except that for any property whose Fair Market Value exceeds $25.0
million such Fair Market Value shall be confirmed by an independent appraisal
obtained by the Company), received after the Issue Date by the Company from the
issuance or sale (other than to any of its Subsidiaries) of shares of Capital
Stock of the Company (other than Redeemable Capital Stock) or warrants, options
or rights to purchase such shares of Capital Stock; plus

 

(3)       100% of
the aggregate net proceeds, including the Fair Market Value of property other
than cash (as determined by the Board of Directors, whose determination shall
be conclusive, except that for any property whose Fair Market Value exceeds
$25.0 million such Fair Market Value shall be confirmed by an independent
appraisal obtained by the Company), received after the Issue Date by the
Company from debt securities that have been converted into or exchanged for
Capital Stock of the Company (other than Redeemable Capital Stock) to the
extent such debt securities were originally sold for such net proceeds plus the
aggregate cash received by the Company at the time of such conversion; plus

 

(4)       100% of
the principal amount of any of the Existing Notes that are converted into
Capital Stock of the Company (other than Redeemable Capital Stock) after the
Issue Date; plus

 

(5)       to the
extent not already included in Consolidated EBITDA, 100% of the aggregate
amount of cash and the Fair Market Value of marketable securities or other
property received by the Company or a Subsidiary following the Issue Date by
means of the sale (other than to the Company or a Subsidiary) of (a) an
Unrestricted Subsidiary, or (b) the property held by an Unrestricted
Subsidiary, or (c) the Capital Stock of an Unrestricted Subsidiary (other than
to the extent the Indebtedness in the Unrestricted Subsidiary constituted
Permitted Indebtedness), or receipt of a dividend or any other distribution
from an Unrestricted Subsidiary after the Issue Date; plus

 

(6)       in the
case of the designation of an Unrestricted Subsidiary as a Subsidiary after the
Issue Date, the Fair Market Value of the Company’s and its Subsidiaries’
aggregate interests in such Unrestricted Subsidiary (as determined by the Board
of Directors, whose determination shall be conclusive, except that if the Fair
Market Value of such interest exceeds $50.0 million such Fair Market Value
shall be confirmed by an independent appraisal obtained by the Company) at the
time of the designation of such Unrestricted Subsidiary as a Subsidiary.

 

(b)        Notwithstanding
Section 4.06(a), the Company or any of its Subsidiaries may:

 

32

 

(i)    pay
dividends on its Capital Stock within 60 days of the declaration thereof if, on
the declaration date, such dividends could have been paid in compliance with
the foregoing limitation;

 

(ii)       acquire,
redeem or retire Capital Stock in exchange for, or in connection with a
substantially concurrent issuance of, Capital Stock of the Company (other than
Redeemable Capital Stock);

 

(iii)      make
any purchase, repurchase, redemption, defeasance or other acquisition or
retirement of Subordinated Obligations of the Company or Guarantor Subordinated
Obligations of any Guarantor made by exchange for, or out of the proceeds of
the substantially concurrent sale of, Capital Stock of the Company (other than
Redeemable Capital Stock and other than Capital Stock issued or sold to a
Subsidiary or an employee stock ownership plan or similar trust to the extent
such sale to an employee stock ownership plan or similar trust is financed by
loans from or Guaranteed by the Company or any Subsidiary unless such loans
have been repaid with cash on or prior to the date of determination); provided, however,
that the net proceeds from such sale of Capital Stock will be excluded from
clause (2) of Section 4.06(a) hereof;

 

(iv)      make
any purchase, repurchase, redemption, defeasance or other acquisition or
retirement of Subordinated Obligations of the Company or Guarantor Subordinated
Obligations of any Guarantor made by exchange for, or out of the proceeds of
the substantially concurrent sale of, Subordinated Obligations of the Company
or any purchase, repurchase, redemption, defeasance or other acquisition or
retirement of Guarantor Subordinated Obligations made by exchange for or out of
the proceeds of the substantially concurrent sale of Guarantor Subordinated
Obligations that, in each case, is permitted to be Incurred pursuant to
Section 4.05 hereof;

 

(v)       in the
case of a Subsidiary, pay dividends (or in the case of any partnership or
limited liability company, any similar distribution) to the holders of its
Capital Stock on a pro rata basis;

 

(vi)      make
any purchase, repurchase, redemption, defeasance or other acquisition or
retirement of Capital Stock of the Company (A) deemed to occur upon the
exercise of stock options to the extent such Capital Stock represents a portion
of the exercise price of such options or (B) in connection with the terms of
any restricted stock agreement awarded to any employee, officer or director of
the Company or its Subsidiaries;

 

(vii)     make
other Restricted Payments in an aggregate amount not to exceed
$400.0 million;

 

(viii)    make
any purchase, repurchase, redemption, defeasance or other acquisition or
retirement for value of any Subordinated Obligation at a purchase price not
greater than 101% of the principal amount of

 

33

 

such Subordinated Obligation plus accrued and unpaid
interest in the event of a Change of Control in accordance with provisions
similar to Section 4.11 hereof; provided that, prior to or simultaneously
with such purchase, repurchase, redemption, defeasance or other acquisition or
retirement, the Company has made the Change of Control Offer (as defined
herein) as provided in such covenant with respect to the Securities and has
completed the repurchase or redemption of all such Securities validly tendered
for payment in connection with such Change of Control Offer; and

 

(ix)       the
declaration and payment of any dividend or distribution by the Company to the
holders of its Capital Stock on a pro rata basis (a) of the Capital Stock of
NCM or net proceeds from the sale or disposition of Capital Stock of NCM, or
(b) in an aggregate amount not to exceed $150.0 million during any twelve month
period.

 

Section 4.07           Limitation on Transactions with Affiliates. 
(a) The Company shall not, and shall not permit any of its Subsidiaries
to, directly or indirectly, enter into or suffer to exist any transaction or
series of related transactions (including, without limitation, the sale,
purchase, exchange or lease of assets, property or services) with any Affiliate
of the Company (other than a Wholly Owned Subsidiary of the Company) involving
aggregate consideration in excess of $5.0 million, unless: (i) such
transaction or series of transactions is on terms that are no less favorable to
the Company or such Subsidiary, as the case may be, than would be available at
the time of such transaction or series of transactions in a comparable
transaction in an arm’s-length dealing with an unaffiliated third party;
(ii) such transaction or series of transactions is in the best interests
of the Company; and (iii) with respect to a transaction or series of
transactions involving aggregate payments equal to or greater than $50.0
million, a majority of disinterested members of the Board of Directors determines
that such transaction or series of transactions complies with clauses
(i) and (ii) above, as evidenced by a Board Resolution.

 

(b)        Notwithstanding
the foregoing limitation, the Company and its Subsidiaries may enter into or
suffer to exist the following:

 

(i)     any
transaction pursuant to any contract in existence on the Issue Date;

 

(ii)    transactions
with a Person that is an Affiliate of the Company solely because the Company,
directly or indirectly, owns Capital Stock in, or controls, such Person;

 

(iii)   any
Restricted Payment permitted to be made pursuant to the provisions of
Section 4.06;

 

(iv)   any
transaction or series of transactions between the Company and one or more of
its Subsidiaries or between two or more of its Subsidiaries (provided that no more than 5% of the
equity interest in any such Subsidiary is owned, directly or indirectly (other
than by direct or indirect

 

34

 

ownership of an equity interest in the Company), by
any Affiliate of the Company other than a Subsidiary);

 

(v)    the
payment of compensation (including amounts paid pursuant to employee benefit
plans) for the personal services of, and indemnity provided on behalf of,
officers, directors and employees of the Company or any of its Subsidiaries;
and

 

(vi)   the
existence of, or the performance by the Company or any of its Subsidiaries of
its obligations under the terms of, any agreements that are described in the
Company’s Annual Report on Form 10-K for the fiscal year ended December 31,
2009, and any amendments thereto; provided, however, that the existence of, or the
performance by the Company or any of its Subsidiaries of its obligations under,
any future amendment to such agreements shall only be permitted by this clause
(vi) to the extent that the terms of any such amendment, taken as a whole,
are not more disadvantageous to the Company and its Subsidiaries in any
material respect than the terms of such agreements in effect on the Issue Date.

 

Section 4.08       Limitation on Liens Securing Indebtedness.  The
Company shall not, and shall not permit any of the Guarantors to, directly or
indirectly, create, Incur or suffer to exist any Lien (other than Permitted
Liens) upon any of its property or assets (including Capital Stock of Subsidiaries
of the Company), whether owned on the date of this Indenture or acquired after
that date, which Lien is securing any Indebtedness, unless contemporaneously
with the Incurrence of such Liens effective provision is made to secure the
Indebtedness due under this Indenture and the Securities or, in respect of
Liens on any Guarantor’s property or assets, any Subsidiary Guarantee of such
Subsidiary, equally and ratably with (or prior to in the case of Liens with
respect to Subordinated Obligations or Guarantor Subordinated Obligations) the
Indebtedness secured by such Lien for so long as such Indebtedness is so
secured.

 

Section 4.09       Limitation on Dividend and Other Payment
Restrictions Affecting Subsidiaries. (a) The Company shall
not, directly or indirectly, create or permit to exist or become effective any
encumbrance or restriction on the ability of any of its Subsidiaries to:

 

(i)     pay
dividends or make any other distributions on its Capital Stock to the Company
or any of its Subsidiaries, or with respect to any other interest or
participation in, or measured by, its profits, or pay any Indebtedness owed to
the Company or any of its Subsidiaries;

 

(ii)    make
loans or advances to the Company or any of its Subsidiaries; or

 

(iii)   transfer
any of its properties or assets to the Company or any of its Subsidiaries.

 

(b)        However,
the restrictions in Section 4.09(a) shall not apply to encumbrances or
restrictions existing under or by reason of:

 

35

 

(i)        agreements
governing Indebtedness as in effect on the Issue Date (including, without
limitation, the Indebtedness under the Existing Notes and the Credit
Facilities) and any amendments, modifications, restatements, renewals,
increases, supplements, refundings, replacements or refinancings thereof;
provided that such amendments, modifications, restatements, renewals,
increases, supplements, refundings, replacements or refinancings are not
materially more restrictive, taken as a whole, with respect to such dividend
and other payment restrictions than those contained in those agreements as in
effect on the Issue Date;

 

(ii)       the
Indenture and the Securities;

 

(iii)      applicable
law, rule, regulation or order;

 

(iv)      any
instrument governing Indebtedness or Capital Stock of a Person acquired by the
Company or any of its Subsidiaries as in effect at the time of such acquisition
(except to the extent such Indebtedness was incurred in connection with or in
contemplation of such acquisition), which encumbrance or restriction is not applicable
to any Person, or the properties or assets of any Person, other than the
Person, or the property or assets of the Person, so acquired; provided that, in
the case of Indebtedness, such Indebtedness was permitted by the terms of the
Indenture to be incurred;

 

(v)       any
agreement existing on the Issue Date to the extent and in the manner such
agreements are in effect on the Issue Date;

 

(vi)      customary
non-assignment provisions in leases, licenses, franchise agreements,
conveyances and other commercial agreements entered into in the ordinary course
of business;

 

(vii)     purchase
money obligations for property acquired in the ordinary course of business that
impose restrictions on the property so acquired of the nature described in
Section 4.09(a)(iii);

 

(viii)    any
agreement for the sale or other disposition of assets or Capital Stock of a
Subsidiary that restricts distributions by such Subsidiary pending its sale or
other disposition;

 

(ix)       Liens
securing Indebtedness otherwise permitted to be incurred pursuant to the
provisions of Section 4.08 that limit the right of the applicable Company or
any of its Subsidiaries to dispose of the assets subject to such Lien;

 

(x)        provisions
with respect to the disposition or distribution of assets or property in joint
venture agreements, stockholder agreements, asset sale agreements, stock sale
agreements and other similar agreements entered into in the ordinary course of
business;

 

36

 

(xi)       restrictions
on cash or other deposits or net worth imposed by customers under contracts
entered into in the ordinary course of business;

 

(xii)      restrictions
contained in the terms of Indebtedness permitted to be incurred under the
covenant described under Section 4.05; provided that such restrictions are
not materially more restrictive, taken as a whole, than the terms contained in
any of the Credit Facilities or the indentures governing the Existing Notes as
in effect on the Issue Date and that the management of the Company determines,
at the time of such financing, that such restrictions are not expected to
impair the Company’s ability to make payments as required under the Securities;
and

 

(xiii)     restrictions
that are not materially more restrictive, taken as a whole, than customary
provisions in comparable financings and that the management of the Company
determines will not materially impair the Company’s ability to make payments as
required under the Securities.

 

Section 4.10           Future Guarantors.  After the
Issue Date, the Company shall cause each Subsidiary which guarantees
obligations under any Indebtedness of the Company or any Guarantor to execute
and deliver to the Trustee a supplemental indenture pursuant to which such
Subsidiary shall unconditionally Guarantee, on a joint and several basis, the
full and prompt payment of the principal of, premium, if any, and interest
(including any Additional Interest), if any, on the Securities on a senior
unsecured basis. Each Subsidiary Guarantee will be limited to an amount not to
exceed the maximum amount that can be guaranteed by that Subsidiary without
rendering the Subsidiary Guarantee as it relates to such Subsidiary, voidable
under applicable law relating to fraudulent conveyance or fraudulent transfer
or similar laws affecting the rights of creditors generally. Notwithstanding
the foregoing, if a Guarantor is released and discharged in full from its
obligations under its Guarantees of all other Indebtedness of the Company and
any Guarantor, then the Subsidiary Guarantee of such Guarantor shall be
automatically and unconditionally released and discharged.

 

Section 4.11           Change of Control.  Upon the
occurrence of a Change of Control, the Company shall be required to make an
offer (a “Change of Control Offer”) to purchase all outstanding
Securities at a purchase price (the “Change of Control Purchase Price”)
equal to 101% of their principal amount plus accrued and unpaid interest
(including any Additional Interest), if any, to the date of purchase (subject
to the right of Holders of record on the relevant record date to receive
interest due on the relevant interest payment date).

 

Within 30 days following the
date upon which the Change of Control occurred, the Company must send, by first
class mail, a notice to each Holder, with a copy to the Trustee, which notice
shall govern the terms of the Change of Control Offer.  Such notice shall
state, among other things, the purchase date, which must be no earlier than 30
days nor later than 60 days from the date such notice is mailed, other than as
may be required by law (the “Change of Control Payment Date”).  The
Change of Control Offer is required to remain open for at least 20 Business
Days and until the close of business on the Change of Control Payment Date.

 

37

 

In the event that the Company
makes a Change of Control Offer to purchase the Securities pursuant to this
Section 4.11, the Company shall comply with any applicable securities laws
and regulations, including any applicable requirements of
Section 14(e) of, and Rule 14e-1 under, the Exchange Act.

 

Section 4.12           Provision
of Financial Information.

 

(a)        Notwithstanding
that the Company may not be subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act, the Company shall file with
the SEC and provide the Trustee and the Holders with such annual reports and
such information, documents and other reports as are specified in Sections 13
and 15(d) of the Exchange Act and applicable to a U.S. corporation subject
to such Sections, such information, documents and reports to be so filed and
provided at the times specified for the filing of such information, documents
and reports under such Sections; provided, however, that the Company shall not be so
obligated to file such information, documents and reports with the SEC if the
SEC does not permit such filings but shall still be obligated to provide such
information, documents and reports to the Trustee and the Holders. 
Delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee’s receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from any information contained therein, including the Company’s
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers’ Certificates).

 

(b)        In
addition, if Additional Securities are issued pursuant to Rule 144A,
unless the Company is then subject to the reporting requirements of
Section 13(d) or 15 of the Exchange Act, the Company will, upon
request, furnish to any prospective purchaser of Securities or beneficial owner
of Securities in connection with any sale thereof the information required by
Rule 144A(d)(4) under the Securities Act, until such time as the
Company has either exchanged the Securities for the Exchange Securities or
until such time as the Holders thereof have disposed of such Securities
pursuant to a Shelf Registration Statement.

 

Section 4.13           Statement as to Compliance. 
The Company shall deliver to the Trustee, within 90 days after the end of each
fiscal year ending after the date hereof (the fiscal year as of the date hereof
is the 52/53 week period ending on the Thursday after December 31), a
brief certificate of its principal executive officer, principal financial
officer or principal accounting officer stating whether, to such officer’s
knowledge, the Company is in compliance with all covenants and conditions to be
complied with by it under this Indenture in accordance with TIA
Section 314(a)(4).  For purposes of this Section 4.13, such
compliance shall be determined without regard to any period of grace or
requirement of notice under this Indenture.

 

When a Default has occurred
and is continuing or if the Trustee, any Holder or the trustee for or the
Holder of any other evidence of Indebtedness of the Company or any Subsidiary
gives any notice or takes any other action with respect to a claimed Default,
the Company shall deliver to the Trustee an Officers’ Certificate specifying
such Default, notice or other action within 10 Business Days of its occurrence.

 

Section 4.14           Waiver of Certain Covenants. 
The Company may omit in any particular instance to comply with any covenant or
condition set forth in Sections 4.03 to 4.11

 

38

 

and
Section 4.12(a), if before the time for such compliance, the Holders of a
majority in aggregate principal amount of the Securities at the time outstanding
shall, by written direction of such Holders, waive such compliance in such
instance with such covenant or condition, but no such waiver shall extend to or
affect such covenant or condition except to the extent so expressly waived,
and, until such waiver shall become effective, the obligations of the Company
and the duties of the Trustee in respect of any such covenant or condition
shall remain in full force and effect.

 

Section 4.15    Further Instruments and Acts. 
Upon request of the Trustee, the Company shall execute and deliver such further
instruments and do such further acts as may be reasonably necessary or proper
to carry out more effectively the purpose of this Indenture.

 

Section 4.16    Payment for Consent.  The
Company shall not, and shall not permit any of its Subsidiaries to, directly or
indirectly, pay or cause to be paid any consideration, whether by way of
interest, fee or otherwise, to any Holder for or as an inducement to any
consent, waiver or amendment of any of the terms or provisions of this
Indenture or the Securities unless such consideration is offered to be paid or
is paid to all Holders that consent, waive or agree to amend in the time frame
set forth in the solicitation documents relating to such consent, waiver or
agreement.

 

Section 4.17    Covenant
Suspension. (a) During any period of time that: (i) the
Securities have Investment Grade Ratings from both Rating Agencies, and (ii) no
Default has occurred and is continuing under this Indenture (the occurrence of
the events described in the foregoing clauses (i) and (ii) being
collectively referred to as a “Covenant Suspension Event”), the Company
and its Subsidiaries shall not be subject to the following provisions of this
Indenture:

 

(1)        Section 4.05;

 

(2)        Section 4.06;

 

(3)        Section 4.07;

 

(4)        Section 4.08;

 

(5)        Section 4.09;

 

(6)        Section 4.10;
and

 

(7)        clause
(c) of Section 5.01.

 

(collectively, the “Suspended
Covenants”).

 

(b)        In the
event that the Company and its Subsidiaries are not subject to the Suspended
Covenants for any period of time commencing upon the date of a Covenant
Suspension Event (the “Suspension Date”), and on any subsequent date
(the “Reversion Date”) one or both of the Rating Agencies withdraws its
Investment Grade Rating or downgrades the rating assigned to the Securities
below an Investment Grade Rating or a Default or Event of

 

39

 

Default
occurs and is continuing, then the Company and its Subsidiaries shall
thereafter again be subject to the Suspended Covenants with respect to future
events.  The period of time between the
Suspension Date and the Reversion Date is referred to herein as the “Suspension
Period.”  Notwithstanding that the
Suspended Covenants may be reinstated, no Default or Event of Default shall be
deemed to have occurred as a result of a failure to comply with the Suspended
Covenants during the Suspension Period (or upon termination of the Suspension
Period or after that time based solely on events that occurred during the
Suspension Period).

 

(c)        On the
Reversion Date, all Indebtedness incurred during the Suspension Period shall be
classified to have been incurred or issued pursuant to Section 4.05 to the
extent such Indebtedness would be permitted to be incurred or issued thereunder
as of the Reversion Date and after giving effect to Indebtedness incurred or
issued prior to the Suspension Period and outstanding on the Reversion Date. To
the extent such Indebtedness would not be so permitted to be incurred or issued
pursuant to Section 4.05, such Indebtedness shall be deemed to have been
existing outstanding on the Issue Date, so that it is classified as permitted
under clause (iv) of the definition of “Permitted Indebtedness.”

 

(d)        Calculations
made after the Reversion Date of the amount available to be made as Restricted
Payments under Section 4.06 will be made as though such covenant had been
in effect from the Issue Date and throughout the Suspension Period.  Restricted Payments made during the
Suspension Period shall be deemed to have been made pursuant to clause (vii) of
Section 4.06(b).

 

ARTICLE V

 

SUCCESSOR COMPANY

 

Section 5.01          Consolidation.  The Company
shall not, in a single transaction or through a series of related transactions,
consolidate with or merge with or into any other Person (other than any Wholly
Owned Subsidiary) or sell, assign, transfer, lease or otherwise dispose of all
or substantially all of its properties and assets to any Person (other than any
Wholly Owned Subsidiary) or group of affiliated Persons unless at the time and
after giving effect thereto:

 

(a)        either:
(i) the Company shall be the continuing corporation; or (ii) the
Person (if other than the Company) formed by such consolidation or into which
the Company is merged or the Person which acquires by conveyance, transfer, lease
or disposition the properties and assets of the Company substantially as an
entirety (the “Surviving Entity”) shall be a corporation duly organized
and validly existing under the laws of the United States of America, any state
thereof or the District of Columbia and shall, in either case, expressly assume
all the Obligations of the Company under the Securities and the Indenture and
its obligations under any Registration Rights Agreement;

 

(b)        immediately
after giving effect to such transaction on a pro forma basis, no Default or
Event of Default shall have occurred and be continuing; and

 

(c)        immediately
after giving effect to such transaction on a pro forma basis, except in the
case of the consolidation or merger of any Subsidiary with or into the

 

40

 

Company,
the Company (or the Surviving Entity if the Company is not the continuing
corporation) could incur $1.00 of additional Indebtedness (other than Permitted
Indebtedness) pursuant to Section 4.05.

 

In connection with any
consolidation, merger, transfer or lease contemplated hereby, the Company shall
deliver, or cause to be delivered, to the Trustee, in form and substance
reasonably satisfactory to the Trustee, an Officers’ Certificate and an Opinion
of Counsel, each stating that such consolidation, merger, transfer or lease and
the supplemental indenture in respect thereto comply with the provisions
described herein and that all conditions precedent herein provided for or
relating to such transaction have been complied with.

 

Section 5.02           Successor Substituted.  Upon
any consolidation or merger or any transfer of all or substantially all of the
assets of the Company in accordance with Section 5.01, the successor
corporation formed by such a consolidation or into which the Company is merged
or to which such transfer is made shall succeed to, shall be substituted for
and may exercise every right and power of the Company under the Securities and
this Indenture, with the same effect as if such successor corporation had been
named as the Company herein.  In the event of any transaction (other than
a lease) described and listed in Section 5.01 in which the Company is not
the continuing corporation, the successor Person formed or remaining shall
succeed to, be substituted for and may exercise every right and power of the
Company, and the Company shall be discharged from all obligations and covenants
under the Securities and this Indenture.

 

ARTICLE VI

 

DEFAULTS AND REMEDIES

 

Section 6.01           Events of Default.  “Event of
Default,” wherever used herein, means any one of the following events (whatever
the reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

 

(a)        default
in the payment of any interest (including any Additional Interest) on any
Security when it becomes due and payable and continuance of such default for a
period of 30 days;

 

(b)        default
in the payment of the principal of or premium, if any, on any Security at its
Maturity (upon acceleration, optional redemption, required purchase or
otherwise);

 

(c)        failure
to comply with the requirements of Article V;

 

(d)        default
in the performance, or breach, of any covenant or warranty of the Company
contained in this Indenture (other than a default in the performance, or
breach, of a covenant or warranty which is specifically dealt with in clause
(a), (b) or (c) above) and continuance of such default or breach for
a period of 60 days after written notice shall have been given to the Company
by the Trustee or to the Company and the Trustee by the Holders of at least 25%
in aggregate principal amount of the Securities then outstanding;

 

41

 

(e)        (i) one
or more defaults in the payment of principal of or premium, if any, on
Indebtedness of the Company or any Significant Subsidiary, aggregating $25.0
million or more, when the same becomes due and payable at the stated maturity
thereof, and such default or defaults shall have continued after any applicable
grace period and shall not have been cured or waived or (ii) Indebtedness
of the Company or any Significant Subsidiary, aggregating $25.0 million or
more, shall have been accelerated or otherwise declared due and payable, or
required to be prepaid or repurchased (other than by regularly scheduled
prepayment) prior to the stated maturity thereof;

 

(f)         any
holder of any Indebtedness in excess of $25.0 million in the aggregate of the
Company or any Significant Subsidiary shall notify the Trustee of the intended
sale or disposition of any assets of the Company or any Significant Subsidiary
that have been pledged to or for the benefit of such Person to secure such
Indebtedness or shall commence proceedings, or take action (including by way of
set-off) to retain in satisfaction of any such Indebtedness, or to collect on,
seize, dispose of or apply, any such asset of the Company or any Significant
Subsidiary pursuant to the terms of any agreement or instrument evidencing any
such Indebtedness of the Company or any Significant Subsidiary or in accordance
with applicable law;

 

(g)        one or
more final judgments or orders shall be rendered against the Company or any
Significant Subsidiary for the payment of money, either individually or in an
aggregate amount, in excess of $25.0 million and shall not be discharged and
either (i) an enforcement proceeding shall have been commenced by any
creditor upon such judgment or order or (ii) there shall have been a
period of 60 consecutive days during which a stay of enforcement of such
judgment or order, by reason of a pending appeal or otherwise, was not in
effect;

 

(h)        the
Company or any Significant Subsidiary pursuant to or under or within the
meaning of any Bankruptcy Law:

 

(i)     commences
a voluntary case or proceeding;

 

(ii)    consents
to the entry of a Bankruptcy Order in an involuntary case or proceeding or the
commencement of any case against it;

 

(iii)   consents
to the appointment of a Custodian of it or for any substantial part of its
property;

 

(iv)   makes a
general assignment for the benefit of its creditors or files a proposal or
other scheme of arrangement involving the rescheduling or composition of its
indebtedness;

 

(v)    files a
petition in bankruptcy or an answer or consent seeking reorganization or
relief; or

 

(vi)   consents
to the filing of such petition in bankruptcy or the appointment of or taking
possession by a Custodian;

 

42

 

(i)         a
court of competent jurisdiction in any involuntary case or proceeding enters a
Bankruptcy Order against the Company or any Significant Subsidiary, and such
Bankruptcy Order remains unstayed and in effect for 60 consecutive days;

 

(j)         a
Custodian shall be appointed out of court with respect to the Company or any
Significant Subsidiary, or with respect to all or any substantial part of the
property of the Company or any Significant Subsidiary; and

 

(k)        except
as permitted by this Indenture, any Subsidiary Guarantee shall be held in any
judicial proceeding to be unenforceable or invalid or shall cease for any
reason to be in full force and effect or any Guarantor, or any Person acting on
behalf of any Guarantor, shall deny or disaffirm its obligations under its
Subsidiary Guarantee.

 

Section 6.02           Acceleration; Rescission and Annulment. 
(a) If an Event of Default (other than an Event of Default specified in
Section 6.01(h), (i) or (j)) shall occur and is continuing, then and
in every such case the Trustee, by notice to the Company, or the Holders of not
less than 25% in aggregate principal amount of the Securities outstanding, by
notice to the Company and the Trustee, may declare the principal of, premium,
if any, and accrued and unpaid interest (including any Additional Interest), if
any, on all the Securities to be due and payable.  If an Event of Default
specified in Section 6.01(h), (i) or (j) shall occur and is
continuing, then the principal of, premium, if any, and accrued and unpaid
interest (including any Additional Interest), if any, on, all the Securities
shall automatically become and be immediately due and payable without any
declaration or other act on the part of the Trustee or any Holder.  The
Company shall deliver to the Trustee, within 10 days after the occurrence
thereof, notice of any default or acceleration referred to in Sections
6.01(d) and 6.01(e).

 

(b)        At any
time after a declaration of acceleration has been made, but before a judgment
or decree for payment of the money due has been obtained by the Trustee as
provided hereinafter in this Article VI, the Holders of a majority in
aggregate principal amount of the outstanding Securities, by written notice to
the Company and the Trustee, may rescind and annul such declaration and its
consequences if:

 

(i)     the
Company has paid or deposited, or caused to be paid or deposited, with the
Trustee a sum sufficient to pay:

 

(A)      all sums
paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel;

 

(B)       all
overdue interest (including Additional Interest, if any) on all Securities;

 

(C)       the
principal of (and premium, if any, on) any Securities that has become due
otherwise than by such declaration of acceleration and interest thereon at the
rate borne by the Securities; and

 

43

 

(D)      to the
extent that payment of such interest is lawful, interest upon overdue interest
(including any Additional Interest) at the rate borne by the Securities; and

 

(ii)   all Events
of Default, other than the non-payment of principal of the Securities which
have become due solely by such declaration of acceleration, have been cured or
waived as provided in Section 6.04.

 

No such rescission shall
affect any subsequent default or impair any right consequent thereon.

 

(c)        Notwithstanding
Section 6.02(b), in the event of a declaration of acceleration in respect
of the Securities because an Event of Default specified in Section 6.01(e) shall
have occurred and be continuing, such declaration of acceleration shall be
automatically annulled if the Indebtedness that is the subject of such Event of
Default (i) is Indebtedness in the  form of a Capital Lease Obligation,
(ii) has been discharged or the holders thereof have rescinded their
declaration of acceleration in respect of such Indebtedness, and
(iii) written notice of such discharge or rescission, as the case may be,
shall have been given to the Trustee by the Company and countersigned by the
holders of such Indebtedness or a trustee, fiduciary or agent for such holders,
within 30 days after such declaration of acceleration in respect of the
Securities, and no other Event of Default has occurred during such 30-day
period which has not been cured or waived during such period.

 

Section 6.03    Other Remedies.  If an Event
of Default occurs and is continuing, the Trustee may pursue any available
remedy to collect the payment of principal of or interest on the Securities or
to enforce the performance of any provision of the Securities or this
Indenture.

 

The Trustee may maintain a
proceeding even if it does not possess any of the Securities or does not
produce any of them in the proceeding.  A delay or omission by the Trustee
or any Holder in exercising any right or remedy accruing upon an Event of
Default shall not impair the right or remedy or constitute a waiver of or
acquiescence in the Event of Default.  No remedy is exclusive of any other
remedy.  All available remedies are cumulative.

 

Section 6.04    Waiver of Past Defaults. 
Subject to Section 6.02, the Holders of a majority in aggregate principal
amount of the Securities then outstanding by notice to the Trustee may waive an
existing Default and its consequences except (a) a Default in the payment
of the principal of or interest on a Security, (b) a Default arising from
a failure to make or consummate a Change of Control Offer in accordance with
the provisions of Section 4.11, or (c) a Default in respect of a
provision that under Section 9.02 cannot be amended without the consent of
each Holder affected.  When a Default is waived, it is deemed cured, but
no such waiver shall extend to any subsequent or other Default or impair any
consequent right.

 

Section 6.05    Control by Majority.  The
Holders of a majority in aggregate principal amount of the Securities then
outstanding may direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee or of exercising any trust or power
conferred on the Trustee with respect to the Securities.  However, the
Trustee may refuse to follow any direction that conflicts with law or this
Indenture or, subject to Section 7.01, that

 

44

 

the
Trustee determines is unduly prejudicial to the rights of other Holders or
would involve the Trustee in personal liability; provided, however,
that subject to Section 315 of the TIA, the Trustee may take any other
action deemed proper by the Trustee that is not inconsistent with such direction. 
Prior to taking any action hereunder, the Trustee shall be entitled to
reasonable indemnification against all losses and expenses caused by taking or
not taking such action.

 

Section 6.06    Limitation on Suits.  A
Holder may not pursue any remedy with respect to this Indenture or the
Securities unless:

 

(a)        such
Holder shall have previously given to the Trustee written notice of a
continuing Event of Default;

 

(b)        the
Holders of at least 25% in aggregate principal amount of the Securities then
outstanding shall have made a written request, and such Holder of or Holders
shall have offered reasonable indemnity, to the Trustee to pursue such
proceeding as trustee; and

 

(c)        the
Trustee has failed to institute such proceeding and has not received from the
Holders of at least a majority in aggregate principal amount of the Securities
outstanding a direction inconsistent with such request, within 60 days after
such notice, request and offer.

 

The foregoing limitations on
the pursuit of remedies by a Holder shall not apply to a suit instituted by a
Holder of Securities for the enforcement of payment of the principal of or
interest on such Security on or after the applicable due date specified in such
Security.  A Holder may not use this Indenture to prejudice the rights of
another Holder or to obtain a preference or priority over another Holder.

 

Section 6.07    Rights of Holders to Receive Payment. 
Notwithstanding any other provision of this Indenture, the right of any Holder
to receive payment of principal of and interest on the securities held by such
Holder, on or after the respective due dates expressed in the Securities, or to
bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder.

 

Section 6.08   Collection Suit by Trustee. 
If an Event of Default specified in Section 6.01(a) or
(b) occurs and is continuing, the Trustee may recover judgment in its own
name and as trustee of an express trust against the Company for the whole
amount then due and owing (together with interest on any unpaid interest to the
extent lawful) and the amounts provided for in Section 7.07.

 

Section 6.09    Trustee May File Proofs of Claim. 
The Trustee may file such proofs of claim and other papers or documents as may
be necessary or advisable in order to have the claims of the Trustee and the
Holders allowed in any judicial proceedings relative to the Company, its
creditors or its property and, unless prohibited by law or applicable regulations,
may vote on behalf of the Holders in any election of a trustee in bankruptcy or
other Person performing similar functions, and any Custodian in any such
judicial proceeding is hereby authorized by each Holder to make payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any

 

45

 

amount
due it for the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and its counsel, and any other amounts due the Trustee
under Section 7.07.

 

Section 6.10    Priorities.  If the Trustee
collects any money or property pursuant to this Article VI, it shall pay
out the money or property in the following order:

 

FIRST: to the Trustee for
amounts due under Section 7.07;

 

SECOND: to Holders for amounts
due and unpaid on the securities for principal and interest, ratably, without
preference or priority of any kind, according to the amounts due and payable on
the Securities for principal and interest respectively; and

 

THIRD: to the Company.

 

The Trustee may fix a record
date and payment date for any payment to Holders pursuant to this
Section.  At least 15 days before such record date, the Company shall mail
to each Holder and the Trustee a notice that states the record date, the
payment date and amount to be paid.

 

Section 6.11    Undertaking for Costs.  In
any suit for the enforcement of any right or remedy under this Indenture or in
any suit against the Trustee for any action taken or omitted by it as Trustee,
a court in its discretion may require the filing by any party litigant in the
suit of an undertaking to pay the costs of the suit, and the court in its
discretion may assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in the suit, having due regard to the merits and
good faith of the claims or defenses made by the party litigant.  This
Section does not apply to a suit by the Trustee, a suit by a Holder
pursuant to Section 6.07 or a suit by Holders of more than 10% in
aggregate principal amount of the Securities.

 

Section 6.12    Waiver of Stay or Extension Laws. 
The Company (to the extent it may lawfully do so) shall not at any time insist
upon, or plead, or in any manner whatsoever claim or take the benefit or
advantage of, any stay or extension law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this
Indenture; and the Company (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and shall not
hinder, delay or impede the execution of any power herein granted to the
Trustee, but shall suffer and permit the execution of every such power as
though no such law had been enacted.

 

ARTICLE VII

 

TRUSTEE

 

Section 7.01    Duties of Trustee.  (a) 
If an Event of Default has occurred and is continuing, the Trustee shall
exercise the rights and powers vested in it by this Indenture and use the same
degree of care and skill in their exercise as a prudent Person would exercise
or use under the circumstances in the conduct of such Person’s own affairs.

 

(b)        Except
during the continuance of an Event of Default:

 

46

 

(i)        the Trustee undertakes to perform such duties and only
such duties as are specifically set forth in this Indenture and no implied
covenants or obligations shall be read into this Indenture against the Trustee;
and

 

(ii)       in the absence of bad faith on its part, the Trustee
may conclusively rely, as to the truth of the statements and the correctness of
the opinions expressed therein, upon certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture.  However,
the Trustee shall examine the certificates and opinions to determine whether or
not they conform to the requirements of this Indenture (but need not confirm or
investigate the accuracy of mathematical calculations or other facts stated
therein).

 

(c)        The Trustee may not be relieved from liability for its
own negligent action, its own negligent failure to act or its own willful
misconduct, except that:

 

(i)        this subsection (c) does not limit the effect of
subsection (b) of this Section;

 

(ii)       the Trustee shall not be liable for any error of
judgment made in good faith by a Trust Officer unless it is proved that the
Trustee was negligent in ascertaining the pertinent facts; and

 

(iii)      the Trustee shall not be liable with respect to
any action it takes or omits to take in good faith in accordance with a
direction received by it pursuant to Section 6.05.

 

(d)        Every provision of this Indenture that in any way
relates to the Trustee is subject to subsections (a), (b) and (c) of
this Section.

 

(e)        The Trustee shall not be liable for interest on any
money received by it except as the Trustee may agree in writing with the
Company.

 

(f)         Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

 

(g)        No provision of this Indenture shall require the
Trustee to expend or risk its own funds or otherwise incur financial liability
in the performance of any of its duties hereunder or in the exercise of any of
its rights or powers.

 

(h)        Every provision of this Indenture relating to the
conduct or affecting the liability of or affording protection to the Trustee
shall be subject to the provisions of this Section and to the provisions
of the TIA, and the provisions of this Article VII shall apply to the
Trustee in its role as Registrar, Paying Agent and Security Custodian.

 

(i)         The Trustee shall not be deemed to have notice
of a Default or an Event of Default unless (a) the Trustee has received
written notice thereof from the Company or any Holder or (b) a Trust
Officer shall have actual knowledge thereof.

 

47

 

(j)         Except with respect to Section 4.01, the
Trustee shall have not duty to inquire as to the performance of the Company
with respect to the covenants contained in Article 4.  In addition,
the Trustee shall not be deemed to have knowledge of an Event of Default except
(i) any Default or Event of Default occurring pursuant to Sections 4.01,
6.01(a) or 6.01(b) or (ii) any Default or Event of Default of
which the Trustee shall have received written notification or obtained actual
knowledge.

 

Section 7.02           Rights of Trustee.  Subject to 315(a) through 315(d) of
the TIA:

 

(a)        The Trustee may rely on any document believed by it to
be genuine and to have been signed or presented by the proper person.  The
Trustee need not investigate any fact or matter stated in the document. 
The Trustee may, however, in its discretion make such further inquiry or
investigation into such facts or matters as it may see fit and, if the Trustee
shall determine to make such further inquiry or investigation, it shall be
entitled to examine the books, records and premises of the Company, personally
or by agent or attorney.

 

(b)        Before the Trustee acts or refrains from acting, it
may require an Officers’ Certificate or an Opinion of Counsel.  The
Trustee shall not be liable for any action it takes or omits to take in good
faith in reliance on the Officers’ Certificate or Opinion of Counsel.

 

(c)        The Trustee may act through agents and shall not be
responsible for the misconduct or negligence of any agent appointed with due
care.

 

(d)        The Trustee shall not be liable for any action it
takes or omits to take in good faith that it believes to be authorized or
within its rights or powers; provided, however, that the Trustee’s conduct does
not constitute willful misconduct or negligence.

 

(e)        The Trustee may consult with counsel of its selection,
and the advice or opinion of counsel with respect to legal matters relating to
this Indenture and the Securities shall be full and complete authorization and
protection from liability in respect to any action taken, omitted or suffered
by it hereunder in good faith and in accordance with the advice or opinion of
such counsel.

 

(f)         The permissive rights of the Trustee to do things
enumerated in this Indenture shall not be construed as a duty unless so
specified herein.

 

Section 7.03           Individual Rights of
Trustee.  The Trustee
in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or its Affiliate with the
same rights it would have if it were not Trustee.  Any Paying Agent,
Registrar or co-registrar may do the same with like rights.  However, the
Trustee must comply with Sections 7.10 and 7.11.

 

Section 7.04           Trustee’s Disclaimer.  The Trustee shall not be responsible for
and makes no representation as to the validity, priority or adequacy of this
Indenture or the Securities, it shall not be accountable for the Company’s use
of the proceeds from the Securities, and it shall not be responsible for any
statement of the Company in this Indenture or in any document issued in
connection with the sale of the Securities or in the Securities other than the
Trustee’s certificate of authentication.

 

48

 

Section 7.05           Notice of Defaults.  If a Default or Event of Default occurs
and is continuing and if it is known to the Trustee, the Trustee shall mail to
each Holder notice of the Default or Event of Default within 90 days after it is
known to a Trust Officer or written notice of it is received by the
Trustee.  Except in the case of a Default or Event of Default in payment
of principal of or interest on any Security, the Trustee may withhold the
notice if and so long as a committee of its Trust Officers in good faith
determines that withholding the notice is in the interests of Holders.

 

Section 7.06           Reports by Trustee to
Holders.  As promptly
as practicable after each December 31 beginning with December 31,
2010, and in any event prior to February 28 in each year thereafter, the
Trustee shall mail to each Holder a brief report for such preceding year that
complies with TIA Section 313(a), if and to the extent required by such
subsection.  The Trustee shall also comply with TIA Section 313(b) and
(c).

 

A copy of each report at the
time of its mailing to Holders shall be filed with the SEC and each stock
exchange (if any) on which the Securities are listed.  The Company agrees
to notify promptly the Trustee whenever the Securities become listed on any
stock exchange and of any delisting thereof.

 

Section 7.07           Compensation and
Indemnity. 
The Company shall pay to the Trustee and any predecessor Trustee from time to
time such compensation for its services as shall from time to time be agreed to
in writing by the Company and the Trustee.  The Trustee’s compensation
shall not be limited by any law on compensation of a trustee of an express
trust.  The Company shall reimburse the Trustee upon request for all
reasonable out-of-pocket expenses incurred or made by it, including costs of
collection, in addition to the compensation for its services.  Such
expenses shall include the reasonable compensation and expenses, disbursements
and advances of the Trustee’s agents, counsel, accountants and experts. 
The Company shall indemnify the Trustee against any and all loss, liability or
expense (including reasonable attorneys’ fees) incurred by it in connection
with the acceptance and administration of this trust and the performance of its
duties hereunder.  The Trustee shall notify the Company promptly of any
claim for which it may seek indemnity.  Failure by the Trustee to so
notify the Company shall not relieve the Company of its obligations
hereunder.  The Company shall defend the claim and the Trustee may have
separate counsel and the Company shall pay the fees and expenses of such
counsel.  The Company need not reimburse any expenses or indemnify against
any loss, liability or expense incurred by the Trustee through the Trustee’s
own willful misconduct, negligence or bad faith.  The Company need not pay
for any settlement made by the Trustee without the Company’s consent, such
consent not to be unreasonably withheld.  All indemnifications and
releases from liability granted hereunder to the Trustee shall extend to its
officers, directors, employees, agents, successors and assigns.

 

To secure the Company’s
payment obligations in this Section, the Trustee shall have a lien prior to the
Securities on all money or property held or collected by the Trustee other than
money or property held in trust to pay principal of and interest on particular
Securities.

 

The Company’s payment
obligations pursuant to this Section shall survive the resignation or
removal of the Trustee and the discharge of this Indenture.  When the
Trustee incurs expenses after the occurrence of a Default specified in
Section 6.01(h), (i) or (j) with

 

49

 

respect to the Company,
the expenses are intended to constitute expenses of administration under the
Bankruptcy Law.

 

The provisions of this
Section shall survive the resignation or removal of the Trustee and the
termination of this Indenture.

 

Section 7.08           Replacement of Trustee.  The Trustee may resign at any time by so
notifying the Company.  The Holders of a majority in aggregate principal
amount of the Securities then outstanding may remove the Trustee by so
notifying the Trustee and may appoint a successor Trustee.  The Company
shall remove the Trustee if:

 

(a)        the Trustee fails to comply with Section 7.10;

 

(b)        the Trustee is adjudged bankrupt or insolvent;

 

(c)        a receiver or other public officer takes charge of the
Trustee or its property; or

 

(d)        the Trustee otherwise becomes incapable of acting.

 

If the Trustee resigns, is
removed by the Company or by the Holders a majority in aggregate principal
amount of the Securities then outstanding and such Holders do not reasonably
promptly appoint a successor Trustee, or if a vacancy exists in the office of
Trustee for any reason (the Trustee in such event being referred to herein as
the retiring Trustee), the Company shall promptly appoint a successor Trustee.

 

A successor Trustee shall
deliver a written acceptance of its appointment to the retiring Trustee and to
the Company.  Thereupon the resignation or removal of the retiring Trustee
shall become effective, and the successor Trustee shall have all the rights,
powers and duties of the Trustee under this Indenture.  The successor
Trustee shall mail a notice of its succession to Holders.  The retiring
Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee, subject to the lien provided for in Section 7.07.

 

If a successor Trustee does
not take office within 30 days after the retiring Trustee resigns or is
removed, the retiring Trustee or the Holders of 10% in aggregate principal
amount of the Securities then outstanding may petition any court of competent
jurisdiction for the appointment of a successor Trustee.

 

If the Trustee fails to comply
with Section 7.10, any Holder who has been a bona fide Holder of a
Security for at least six months may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

 

Notwithstanding the
replacement of the Trustee pursuant to this Section, the Company’s obligations
under Section 7.07 shall continue for the benefit of the retiring Trustee.

 

Section 7.09           Successor Trustee by
Merger.  If the
Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another
corporation or banking association, the resulting, surviving or transferee
corporation or

 

50

 

banking
association without any further act shall be the successor Trustee.  In
case at the time such successor or successors by merger, conversion or
consolidation to the Trustee shall succeed to the trusts created by this
Indenture any of the Securities shall have been authenticated but not
delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Securities so
authenticated; and in case at that time any of the Securities shall not have
been authenticated; any such successor to the Trustee may authenticate such
Securities either in the name of any predecessor hereunder or in the name of
the successor to the Trustee; and in all such cases such certificates shall
have the full force which it is anywhere in the Securities or in this Indenture
provided  that the certificate of
the Trustee shall have.

 

Section 7.10           Eligibility;
Disqualification. 
The Trustee shall at all times satisfy the requirements of TIA
Section 310(a).  The Trustee shall have (or, in the case of a
corporation included in a bank holding company system, the related bank holding
company shall have) a combined capital and surplus of at least $50,000,000 as
set forth in its (or its related bank holding company’s) most recent published
annual report of condition.  The Trustee shall comply with TIA
Section 310(b), subject to the penultimate paragraph thereof; provided,
however, that there shall be excluded from the operation of TIA
Section 310(b)(1) any indenture or indentures under which other
securities or certificates of interest or participation in other securities of
the Company are outstanding if the requirements for such exclusion set forth in
TIA Section 310(b)(1) are met.

 

Section 7.11           Preferential
Collection of Claims Against Company.  The Trustee shall comply with TIA Section 311(a),
excluding any creditor relationship listed in TIA Section 311(b):  A
Trustee who has resigned or been removed shall be subject to TIA
Section 311(a) to the extent indicated.

 

ARTICLE VIII

 

DISCHARGE OF INDENTURE; DEFEASANCE

 

Section 8.01           Discharge of Liability
on Securities; Defeasance.  (a) When (i) either (A) all outstanding
Securities that have been authenticated (other than Securities replaced
pursuant to Section 2.07 and Securities for whose payment money has been
deposited in trust and thereafter repaid to the Company) have been delivered by
the Company to the Trustee for cancellation or (B) all outstanding
Securities that have not been delivered by the Company to the Trustee for
cancellation have become due and payable, whether at Maturity or upon
redemption or will become due and payable within one year or are to be called
for redemption within one year under arrangements satisfactory to the Trustee
for the giving of notice of redemption pursuant to Article III and the
Company irrevocably deposits or causes to be deposited with the Trustee funds
in trust solely for the benefit of the Holders, cash in U.S. dollars,
non-callable Government Securities, or a combination thereof, in such amounts
as will be sufficient without consideration of any reinvestment of interest, to
pay and discharge the entire Indebtedness on such Securities not theretofore
delivered to the Trustee for cancellation for principal, premium, if any, and
accrued interest (including Additional Interest, if any) to the date of
Maturity or redemption; (ii) no Default or Event of Default shall have
occurred and be

 

51

 

continuing
on the date of such deposit or shall occur as a result of such deposit and such
deposit will not result in a breach or violation of, or constitute a default
under, any other instrument to which the Company or any Guarantor is a party or
by which the Company or any Guarantor is bound; (iii) the Company or any
Guarantor has paid or caused to be paid all sums payable by it under this
Indenture and the Securities; and (iv) the Company has delivered
irrevocable instructions to the Trustee under this Indenture to apply the
deposited money toward the payment of such Securities at Maturity or the
redemption date, as the case may be, then upon demand of the Company
(accompanied by an Officers’ Certificate and an Opinion of Counsel to the
Trustee stating that all conditions precedent specified herein relating to the
satisfaction and discharge of this Indenture have been complied with) this
Indenture shall cease to be of further effect with respect to the Securities
and the Trustee shall acknowledge satisfaction and discharge of this Indenture,
at the cost and expense of the Company.

 

(b)        Subject to Sections 8.01(c) and 8.02, the Company
may, at its option, and at any time elect to terminate (i) all of its and
the Guarantors’ obligations under the Securities, any Subsidiary Guarantees and
this Indenture (“legal defeasance option”) or (ii) its and the
Guarantors’ obligations under Section 5.01(c) and Sections 4.05,
4.06, 4.07, 4.08, 4.09, 4.10, 4.11, and 4.12 and the operation of
Section 6.01(c) (with respect to a Event of Default due to a failure
to meet obligations under Section 5.01(c)) and Sections 6.01(d), (e),
(f) and (g) (“covenant defeasance option”).  The Company
may exercise its legal defeasance option notwithstanding its prior exercise of
its covenant defeasance option.

 

If the Company exercises its
legal defeasance option, payment of the Securities may not be accelerated
because of an Event of Default.  If the Company exercises its covenant
defeasance option, payment of the Securities may not be accelerated because of
an Event of Default specified in Sections 6.01(d) (with respect to
Sections 4.05, 4.06, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12 and 5.01(c)), (e),
(f) or (g).

 

Upon satisfaction of the
conditions set forth herein and upon request of the Company, the Trustee shall
acknowledge in writing the discharge of those obligations that the Company
terminates.

 

(c)        Notwithstanding subsections (a) and
(b) above, the Company’s obligations in Sections 2.03, 2.04, 2.05, 2.06,
2.07, 2.08, 2.09, 4.01, 4.02, 4.03, 4.13, 7.07, 7.08, 8.03, 8.04, 8.05 and 8.06
shall survive until the Securities have been paid in full.  Thereafter,
the Company’s obligations in Sections 7.07, 8.04, 8.05 and 8.06 shall survive.

 

Section 8.02           Conditions to
Defeasance. 
The Company may exercise its legal defeasance option or its covenant defeasance
option only if:

 

(a)        The Company shall irrevocably have deposited or caused
to be deposited with the Trustee (or another trustee satisfying the
requirements of Section 7.10 who shall agree to comply with the provisions
of this Article VIII applicable to it) as trust funds in trust for the
benefit of the Holders of the Securities, cash in U.S. Dollars, non-callable
Government Securities or a combination thereof, in such amounts as will be
sufficient, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to
the Trustee, to pay and discharge and which shall be applied by

 

52

 

the
Trustee (or other qualifying trustee) to pay the principal of (and premium, if
any) and interest (including any Additional Interest) on the outstanding
Securities on the Stated Maturity (or redemption date, if applicable) of such
principal (and premium, if any) or installment of interest; provided that the Trustee shall have been
irrevocably instructed to apply such money or the proceeds of such Government
Securities to said payments with respect to the Securities.  Before such a
deposit, the Company may give the Trustee, in accordance with Section 3.01
hereof, a notice of its election to redeem all of the outstanding Securities at
a future date in accordance with Article III, which notice shall be
irrevocable;

 

(b)        No Default or Event of Default shall have occurred and
be continuing on the date of such deposit or, insofar as Section 6.01(h),
(i) or (j) is concerned, at any time during the period ending on the
91st day after the date of such deposit (it being understood that this
condition shall not be deemed satisfied until the expiration of such period);

 

(c)        the deposit does not constitute a default hereunder or
under any other material agreement binding on the Company;

 

(d)        the Company delivers to the Trustee an Opinion of
Counsel to the effect that the trust resulting from the deposit does not
constitute, or is qualified as, a regulated investment company under the
Investment Company Act of 1940;

 

(e)        in the case of the legal defeasance option, the
Company shall have delivered to the Trustee an Opinion of Counsel stating that
(i) the Company has received from, or there has been published by, the
Internal Revenue Service a ruling, or (ii) since the date of this
Indenture there has been a change in the applicable U.S. Federal income tax
law, in either case to the effect that, and based thereon such Opinion of
Counsel shall confirm that, the Holders will not recognize income, gain or loss
for U.S. Federal income tax purposes as a result of such legal defeasance and
will be subject to U.S. Federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such defeasance had
not occurred;

 

(f)         in the case of the covenant defeasance option,
the Company shall have delivered to the Trustee an Opinion of Counsel to the
effect that the Holders will not recognize income, gain or loss for U.S.
Federal income tax purposes as a result of such covenant defeasance and will be
subject to U.S. Federal income tax on the same amounts, in the same manner and
at the same times as would have been the case if such covenant defeasance had
not occurred; and

 

(g)        the Company delivers to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that all conditions
precedent to the defeasance and discharge of the Securities as contemplated by
this Article VIII have been complied with.

 

Section 8.03           Application of Trust Money.

 

The Trustee shall hold in
trust money or Government Securities deposited with it pursuant to this
Article VIII.  It shall apply the deposited money and the money from
Government Securities through the Paying Agent and in accordance with this Indenture
to the payment of principal of and interest on the Securities.

 

53

 

Section 8.04           Repayment to Company.  The Trustee and the Paying Agent shall
promptly turn over to the Company upon request any excess money or securities
held by them at any time.

 

Subject to any applicable
abandoned property law, the Trustee and the Paying Agent shall pay to the
Company upon request any money held by them for the payment of principal,
premium, if any, or interest that remains unclaimed for two years, and,
thereafter, Holders entitled to the money must look to the Company for payment
as general creditors.

 

Section 8.05           Indemnity for
Government Obligations.  The Company shall pay and shall indemnify the Trustee against
any tax, fee or other charge imposed on or assessed against deposited
Government Securities or the principal and interest received on such Government
Securities.

 

Section 8.06           Reinstatement.  If the Trustee or Paying Agent is unable
to apply any money or Government Securities in accordance with this
Article VIII by reason of any legal proceeding or by reason of any order
or judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the Company’s obligations under this Indenture
and the Securities shall be revived and reinstated as though no deposit had
occurred pursuant to this Article VIII until such time as the Trustee or
Paying Agent is permitted to apply all such money or Government Securities in
accordance with this Article VIII; provided, however, that, if the Company has made
any payment of interest on or principal of any Securities because of the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Securities to receive such payment from the money or
Government Securities held by the Trustee or Paying Agent.

 

ARTICLE IX

 

AMENDMENTS

 

Section 9.01           Without Consent of
Holders.  The Company,
the Guarantors and the Trustee may amend this Indenture or the Securities or the
Guarantees without notice to or consent of any Holder:

 

(a)        to cure any ambiguity, omission, defect or
inconsistency;

 

(b)        to comply with Article V;

 

(c)        to provide for uncertificated Securities in addition
to or in place of certificated Securities; provided, however, that the uncertificated
Securities are issued in registered form for purposes of
Section 163(f) of Title 26 of the United States Code or in a manner
such that the uncertificated Securities are described in
Section 163(f)(2)(B) of Title 26 of the United States Code;

 

(d)        to add Guarantees with respect to the Securities or to
secure the Securities;

 

54

 

(e)        to add to the covenants of the Company for the benefit
of the Holders or to surrender any right or power herein conferred upon the
Company;

 

(f)         to comply with any requirements of the SEC in
connection with qualifying, or maintaining the qualification of, this Indenture
under the TIA; or

 

(g)        to make any change that does not adversely affect the
rights of any Holder.

 

After an amendment under this
Section becomes effective, the Company shall mail to Holders a notice
briefly describing such amendment.  The failure to give such notice to all
Holders, or any defect therein, shall not impair or affect the validity of an
amendment under this Section.

 

Section 9.02           With Consent of
Holders.  The Company,
the Guarantors and the Trustee may modify or amend this Indenture or the
Securities or the Guarantees without notice to any Holder but with the written consent
of the Holders of not less than a majority in aggregate principal amount of the
Securities then outstanding (including consents obtained in connection with a
tender offer or exchange offer for the Securities).  However, without the
consent of each Holder affected thereby, a modification or amendment may not:

 

(a)        change the Stated Maturity of the principal of, or any
installment of interest (including Additional Interest) on, any Security, or
reduce the principal amount thereof or the rate of interest (including
Additional Interest, if any) thereon or any premium payable upon the redemption
thereof, or change the coin or currency in which the principal of any Security
or any premium or the interest (including Additional Interest) thereon is
payable, or impair the right to institute suit for the enforcement of any such
payment after the Stated Maturity thereof (or, in the case of redemption, on or
after the redemption date);

 

(b)        reduce the amount of, or change the coin or currency
of, or impair the right to institute suit for the enforcement of, the Change of
Control Purchase Price;

 

(c)        reduce the percentage in principal amount of the
outstanding Securities, the consent of whose Holders is required for any such
supplemental indenture, or the consent of whose Holders is required for any
waiver (of compliance with certain provisions of this Indenture or certain
defaults hereunder and their consequences) provided for in this Indenture; or

 

(d)        modify any of the provisions of this Section or
Sections 6.04, 6.07 and 4.14, except to increase the percentage of outstanding
Securities the consent of whose Holders is required for such actions or to
provide that certain other provisions of this Indenture cannot be modified or
waived without the consent of the Holder of each Security affected thereby.

 

It shall not be necessary for
the consent of the Holders under this Section to approve the particular
form of any proposed amendment, but it shall be sufficient if such consent
approves the substance thereof.

 

55

 

After an amendment under this
Section becomes effective, the Company shall mail to Holders a notice
briefly describing such amendment.  The failure to give such notice to all
Holders, or any defect therein, shall not impair or affect the validity of an
amendment under this Section.

 

Section 9.03           Compliance with Trust
Indenture Act. 
Every amendment to this Indenture or the Securities shall comply with the TIA
as then in effect.

 

Section 9.04           Revocation and Effect
of Consents and Waivers.  A consent to an amendment or a waiver by a Holder of a Security
shall bind the Holder and every subsequent Holder of that Security or portion
of the Security that evidences the same debt as the consenting Holder’s
Security, even if notation of the consent or waiver is not made on the
Security.  However, any such Holder or subsequent Holder may revoke the
consent or waiver as to such Holder’s Security or portion of the Security if
the Trustee receives the notice of revocation before the date the amendment or
waiver becomes effective.  After an amendment or waiver becomes effective,
it shall bind every Holder.  An amendment or waiver becomes effective upon
the execution of such amendment or waiver by the Trustee.

 

The Company may, but shall not
be obligated to, fix a record date for the purpose of determining the Holders
entitled to give their consent or take any other action described above or
required or permitted to be taken pursuant to this Indenture.  Such record
date shall be a date not more than 30 days prior to the first solicitation of
Holders generally in connection therewith and no later than the date such
solicitation is completed.  If a record date is fixed, then
notwithstanding the immediately preceding paragraph or
Section 316(c) of the TIA, those Persons who were Holders at such
record date (or their duly designated proxies), and only those Persons, shall
be entitled to give such consent or to revoke any consent previously given or
to take any such action, whether or not such Persons continue to be Holders
after such record date.  No such consent shall be valid or effective for
more than 180 days after such record date.

 

For all purposes of this
Indenture, all Initial Securities, Additional Securities of the same series,
Exchange Securities for the same series of Securities and Private Exchange
Securities for the same series of Securities shall vote together as one series
of Securities under this Indenture.

 

Section 9.05           Notation on or
Exchange of Securities.  If an amendment changes the terms of a Security, the Trustee may
require the Holder of the Security to deliver such Security to the
Trustee.  The Trustee may place an appropriate notation on the Security
regarding the changed terms and return such Security to the Holder. 
Alternatively, if the Company or the Trustee so determines, the Company in
exchange for the Security shall issue and the Trustee shall authenticate a new
Security that reflects the changed terms.  Failure to make the appropriate
notation or to issue a new Security shall not affect the validity of such
amendment.

 

Section 9.06           Trustee To Sign
Amendments. 
The Trustee shall sign any amendment authorized pursuant to this
Article IX if the amendment does not adversely affect the rights, duties,
liabilities or immunities of the Trustee.  If it does, the Trustee may but
need not sign it.  In signing such amendment the Trustee shall be entitled
to receive indemnity reasonably satisfactory to it and to receive, in addition
to the documents required by Section 11.04 and

 

56

 

(subject
to Section 7.01) shall be fully protected in relying upon, an Officers’
Certificate and an Opinion of Counsel stating that such amendment is authorized
or permitted by this Indenture and is a legal, valid and binding obligation of
the Company.

 

ARTICLE X

 

GUARANTEES

 

Section 10.01         Subsidiary Guarantees.  In the event that a Subsidiary is
required to become a Guarantor pursuant to Section 4.10, then such
Guarantor shall execute a supplement to this Indenture pursuant to Section 10.02
and upon such execution shall become a party to this Indenture, will have all
the rights and be subject to all of the obligations of a Guarantor under this
Indenture and agrees to be bound by all of the provisions of this Indenture
applicable to a Guarantor, including this Article X, and to perform all of
the obligations and agreements of a Guarantor under this Indenture.

 

Subject to the provisions
of this Article X, each Guarantor fully, unconditionally and irrevocably
guarantees, as primary obligor and not merely as surety, jointly and severally
with any other Guarantor, to each Holder of the Securities and the Trustee, the
full and punctual payment when due, whether at maturity, by acceleration, by
redemption or otherwise, of the principal of, premium, if any, and interest
(including Additional Interest), if any, on the Securities and all other
obligations and liabilities of the Company under this Indenture (including
without limitation interest accruing after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding, relating to the Company or any Guarantor whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding and the
obligations under Section 7.07) (all the foregoing being hereinafter
collectively called the “Guarantor Obligations”).  Each Guarantor
agrees that the Guarantor Obligations shall rank equally in right of payment
with other senior unsecured Indebtedness of such Guarantor, except to the extent
such other Indebtedness is subordinate to the Guarantor Obligations.  Each
Guarantor further agrees (to the extent permitted by law) that the Guarantor
Obligations may be extended or renewed, in whole or in part, without notice or
further assent from it, and that it will remain bound under this Article X
notwithstanding any extension or renewal of any Guarantor Obligation.

 

Each Guarantor waives
presentation to, demand of payment from and protest to the Company of any of
the Guarantor Obligations and also waives notice of protest for
non-payment.  Each Guarantor waives notice of any default under the
Securities or the Guarantor Obligations.

 

Each Guarantor further agrees
that its Guarantee herein constitutes a Guarantee of payment when due (and not
a Guarantee of collection) and waives any right to require that any resort be
had by any Holder to any security held for payment of the Guarantor
Obligations.

 

Except as set forth in
Section 10.02, the obligations of each Guarantor hereunder shall not be
subject to any reduction, limitation, impairment or termination for any reason
(other than payment of the Guarantor Obligations in full), including any claim
of waiver, release,

 

57

 

surrender, alteration or
compromise, and shall not be subject to any defense of setoff, counterclaim,
recoupment or termination whatsoever or by reason of the invalidity, illegality
or unenforceability of the Guarantor Obligations or otherwise.  Without
limiting the generality of the foregoing, the obligations of each Guarantor
herein shall not be discharged or impaired or otherwise affected by
(a) the failure of any Holder to assert any claim or demand or to enforce
any right or remedy against the Company or any other person under, this Indenture,
the Securities or any other agreement or otherwise; (b) any extension or
renewal granted; (c) any rescission, waiver, amendment or modification of
any of the terms or provisions of this Indenture, the Securities or any other
agreement; (d) the release of any security held by any Holder or the
Trustee for the Guarantor Obligations or any of them; (e) the failure of
any Holder to exercise any right or remedy against any other Guarantor;
(f) any change in the ownership of the Company; (g) any default,
failure or delay, willful or otherwise, in the performance of the Guarantor
Obligations; or (h) any other act or thing or omission or delay to do any
other act or thing which may or might in any manner or to any extent vary the
risk of any Guarantor or would otherwise operate as a discharge of such
Guarantor as a matter of law or equity.

 

Subject to the provisions of
Section 4.10, each Guarantor agrees that its Guarantee herein shall remain
in full force and effect until payment in full of all the Guarantor Obligations
or such Guarantor is released from its Guarantee in compliance with
Section 10.03 hereof.  Each Guarantor further agrees that its
Guarantee herein shall continue to be effective or be reinstated, as the case
may be, if at any time payment, or any part thereof, of principal of or
interest on any of the Guarantor Obligations is rescinded or must otherwise be
restored by any Holder upon the bankruptcy or reorganization of the Company or
otherwise.

 

In furtherance of the
foregoing and not in limitation of any other right which any Holder has at law
or in equity against any Guarantor by virtue hereof, upon the failure of the
Company to pay any of the Guarantor Obligations when and as the same shall
become due, whether at maturity, by acceleration, by redemption or otherwise,
each Guarantor hereby promises to and will, upon receipt of written demand by
the Trustee, forthwith pay, or cause to be paid, in cash, to the Holders an
amount equal to the sum of (i) the unpaid amount of such Guarantor Obligations
then due and owing and (ii) accrued and unpaid interest on such Guarantor
Obligations then due and owing (but only to the extent not prohibited by law).

 

Each Guarantor further agrees
that, as between such Guarantor, on the one hand, and the Holders, on the other
hand, (x) the maturity of the Guarantor Obligations guaranteed hereby may
be accelerated as provided in this Indenture for the purposes of its Guarantee
herein, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the Guarantor Obligations guaranteed hereby and
(y) in the event of any such declaration of acceleration of such Guarantor
Obligations, such Guarantor Obligations (whether or not due and payable) shall
forthwith become due and payable by the Guarantor for the purposes of this
Guarantee.

 

Each Guarantor also agrees to
pay any and all costs and expenses (including reasonable attorneys’ fees and
expenses) incurred by the Trustee or the Holders in enforcing any rights under
this Section.

 

58

 

Section 10.02         Execution and Delivery of Subsidiary Guarantees.

 

To evidence its Subsidiary
Guarantee, each Subsidiary that is required to become a Guarantor hereby agrees
to execute a supplement to this Indenture, substantially in the form of Exhibit C
hereto, and deliver it to the Trustee. 
Each such supplement to this Indenture shall be executed on behalf of
the applicable Guarantor by either manual or facsimile signature of one Officer
or other person duly authorized by all necessary corporate action of such
Guarantor who shall have been duly authorized to so execute by all requisite
corporate action.  The validity and enforceability of any Guarantee shall
not be affected by the fact that it is not affixed to any particular Security.

 

Each of the Guarantors hereby
agrees that its Guarantee shall remain in full force and effect notwithstanding
any failure to endorse on each Security a notation of such Guarantee.

 

If an Officer of a Guarantor
whose signature is on this Indenture or a Guarantee no longer holds that office
at the time the Trustee authenticates the Security on which such Guarantee is
endorsed or at any time thereafter, such Guarantor’s Guarantee of such Security
shall nevertheless be valid,

 

The delivery of any Security
by the Trustee, after the authentication thereof hereunder, shall constitute
due delivery of any Guarantee set forth in this Indenture on behalf of each
Guarantor.

 

Section 10.03         Limitation on
Liability; Termination, Release and Discharge.  (a) Any term or provision of this
Indenture to the contrary notwithstanding, the obligations of each Guarantor
hereunder will be limited to the maximum amount as will, after giving effect to
all other contingent and fixed liabilities of such Guarantor (including,
without limitation, any Guarantees under the Credit Agreement) and after giving
effect to any collections from or payments made by or on behalf of any other
Guarantor in respect of the obligations of such other Guarantor under its
Guarantee or pursuant to its contribution obligations under this Indenture,
result in the obligations of such Guarantor under its Guarantee not
constituting a fraudulent conveyance or fraudulent transfer under federal or
state law and not otherwise being void or voidable under any similar laws
affecting the rights of creditors generally.

 

(b)        The Company shall not permit any Guarantor to
consolidate with or merge with or into any person (other than another
Guarantor) and shall not permit the conveyance, transfer or lease of
substantially all of the assets of any Guarantor unless:

 

(i)        the resulting, surviving or transferee Person shall be
a corporation, partnership, trust or limited liability company organized and
existing under the laws of the United States of America, any State of the
United States or the District of Columbia and such Person (if not such
Guarantor) shall expressly assume, by supplemental indenture, executed and
delivered to the Trustee, all the obligations of such Guarantor under its
Subsidiary Guarantee;

 

(ii)       immediately after giving effect to such transaction
(and treating any Indebtedness that becomes an obligation of the resulting,
surviving or transferee Person or any Subsidiary as a result of such
transaction as

 

59

 

having been Incurred by such Person or such Subsidiary
at the time of such transaction), no Default or Event of Default shall have
occurred and be continuing;

 

(iii)      the Company shall have delivered to the Trustee
an Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger or transfer and such supplemental indenture (if any)
comply with this Indenture; or

 

(iv)      the transaction is made in compliance with
Section 5.01 (other than clause (c) of Section 5.01).

 

Upon the sale or disposition
of a Guarantor (by merger, consolidation, the sale of its Capital Stock or the
sale of all or substantially all of its assets (other than by lease)) and
whether or not the Guarantor is the surviving corporation in such transaction
to a Person which is not the Company or a Subsidiary, such Guarantor will be
automatically released from all its obligations under this Indenture and its
Subsidiary Guarantee; provided, however, that (1) no Default or
Event of Default will have occurred or be continuing or would occur as a
consequence of a release of the obligations of such Guarantor; and (2) all
the obligations of such Guarantor under any Indebtedness of the Company or any
Guarantor terminate upon consummation of such transaction.

 

(c)        Each Guarantor shall be deemed released from all its
obligations under this Indenture and its Subsidiary Guarantee if all the
conditions to legal defeasance set forth in Article VIII hereof are
satisfied in accordance herewith.

 

(d)        Each Guarantor shall be released from its obligations
under this Indenture and its Subsidiary Guarantee if the Company designates
such Guarantor as an Unrestricted Subsidiary and such designation complies with
the other applicable provisions of this Indenture.

 

Section 10.04         Right of Contribution.  Each Guarantor hereby agrees that to the
extent that any Guarantor shall have paid more than its proportionate share of
any payment made on the obligations under the Guarantees, such Guarantor shall
be entitled to seek and receive contribution from and against the Company, or
any other Guarantor who has not paid its proportionate share of such
payment.  The provisions of this Section 10.04 shall in no respect
limit the obligations and liabilities of each Guarantor to the Trustee and the
Holders and each Guarantor shall remain liable to the Trustee and the Holders
for the full amount guaranteed by such Guarantor hereunder.

 

Section 10.05         No Subrogation.  Notwithstanding any payment or payments
made by each Guarantor hereunder, no Guarantor shall be entitled to be
subrogated to any of the rights of the Trustee or any Holder against the
Company or any other Guarantor or any collateral security or guarantee or right
of offset held by the Trustee or any Holder for the payment of the Guarantor
Obligations, nor shall any Guarantor seek or be entitled to seek any
contribution or reimbursement from the Company or any other Guarantor in
respect of payments made by such Guarantor hereunder, until all amounts owing
to the Trustee and the Holders by the Company on account of the Guarantor
Obligations are paid in full.  If any amount shall be paid to any

 

60

 

Guarantor
on account of such subrogation rights at any time when all of the Guarantor Obligations
shall not have been paid in full, such amount shall be held by such Guarantor
in trust for the Trustee and the Holders, segregated from other funds of such
Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over
to the Trustee in the exact form received by such Guarantor (duly indorsed by
such Guarantor to the Trustee, if required), to be applied against the
Guarantor Obligations.

 

ARTICLE XI

 

MISCELLANEOUS

 

Section 11.01         Trust Indenture Act
Controls. 
If any provision of this Indenture limits, qualifies or conflicts with another
provision that is required to be included in this Indenture by the TIA, the
required provision shall control.

 

Section 11.02         Notices.  Any notice or communication shall be in
writing and delivered in person or mailed by first-class mail or sent by
facsimile (with a hard copy delivered in person or by mail promptly thereafter)
and addressed as follows:

 

if to the Company:

 

Regal Entertainment Group

7132 Regal Lane

Knoxville, Tennessee 37918

Attention of:       General
Counsel

Facsimile:           (865)
922-6085

 

with copies (which shall
not constitute notice) to:

 

Hogan Lovells US, LLP

One Tabor Center, Suite 1500

1200 Seventeenth Street

Denver, Colorado 80202

Attention of:       Richard
J. Mattera, Esq.

Facsimile:           (303)
899-7333

 

if to the Trustee:

 

Wells Fargo Bank, National
Association

Corporate Trust Services

625 Marquette Ave., 11th Floor

MAC N9311-110

Minneapolis, Minnesota 55479

Attention of:       Richard Prokosch

 

The Company or the Trustee by
notice to the other may designate additional or different addresses for
subsequent notices or communications.  Where this Indenture provides for

 

61

 

notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice.  Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such waiver.

 

Any notice or communication
mailed to a Holder shall be mailed to the Holder at the Holder’s address as it
appears on the registration books of the Registrar and shall be sufficiently given
if so mailed within the time prescribed.

 

Failure to mail a notice or
communication to a Holder or any defect in it shall not affect its sufficiency
with respect to other Holders.  If a notice or communication is mailed in
the manner provided above, it is duly given, whether or not. the addressee
receives it.

 

Section 11.03         Communication by
Holders with Other Holders.  Holders may communicate pursuant to TIA
Section 312(b) with other Holders with respect to their rights under
this Indenture or the Securities.  The Company, the Trustee, the Registrar
and anyone else shall have the protection of TIA Section 312(c).

 

Section 11.04         Certificate and
Opinion as to Conditions.  Upon any request or application by the Company to the Trustee to
take or refrain from taking any action under this Indenture, the Company shall
furnish to the Trustee:

 

(a)        an Officers’ Certificate in form and substance
reasonably satisfactory to the Trustee stating that, in the opinion of the
signers, all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with; and

 

(b)        an Opinion of Counsel in form and substance reasonably
satisfactory to the Trustee stating that, in the opinion of such counsel, all
such conditions precedent have been complied with.

 

Section 11.05         Statements Required in
Certificate or Opinions.  Each certificate or opinion with respect to compliance with a
covenant or condition provided for in this Indenture shall include:

 

(a)        a statement that the individual making such
certificate or opinion has read such covenant or condition;

 

(b)        a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based;

 

(c)        a statement that, in the opinion of such individual,
he has made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or condition has
been complied with; and

 

(d)        a statement as to whether or not, in the opinion of
such individual, such covenant or condition has been complied with.

 

62

 

In any case where several
matters are required to be certified by, or covered by an opinion of, any specified
Person, it is not necessary that all such matters be certified by, or covered
by, the opinion of, only one such Person, or that they be so certified or
covered by only one document, but one such Person may certify or give an
opinion with respect to some matters and one or more other such Persons as to
other matters, and any such Person may certify or give an opinion as to such
matters in one or several documents.

 

Any certificate or opinion of
an officer of the Company may be based, insofar as it relates to legal matters,
upon a certificate or opinion of, or representations by, counsel, unless such
officer knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to the matters upon which
his certificate or opinion is based are erroneous.  Any such certificate
or Opinion of Counsel may be based, insofar as it relates to factual matters,
upon a certificate or opinion of, or representations by, an officer or officers
of the Company stating that the information with respect to such factual
matters is in the possession of the Company, unless such counsel knows, or in
the exercise of reasonable care should know, that the certificate or opinion or
representations with respect to such matters are erroneous.

 

Where any Person is required
to make, give or execute two or more applications, requests, consents,
certificates, statements, opinions or other instruments under this Indenture,
they may, but need not, be consolidated and form one instrument.

 

Section 11.06         When Securities
Disregarded. 
In determining whether the Holders of the required principal amount of
Securities have concurred in any direction, waiver or consent, Securities owned
by the Company or the Guarantors or by any Person directly or indirectly
controlling or controlled by or under direct or indirect common control with of
them shall be disregarded and deemed not to be outstanding, except that, for
the purpose of determining whether the Trustee shall be protected in relying on
any such direction, waiver or consent, only Securities that a Trust Officer
knows are so owned shall be so disregarded.  Also, subject to the
foregoing, only Securities outstanding at the time shall be considered in any
such determination.

 

Section 11.07         Rules by Trustee,
Paying Agent and Registrar.  The Trustee may make reasonable rules for
action by or a meeting of Holders.  The Registrar and the Paying Agent or
co-registrar may make reasonable rules for their functions.

 

Section 11.08         Legal Holidays.  A “Legal Holiday” is a Saturday, a
Sunday or a day on which banking institutions are not required to be open in
the States of New York or Missouri.  If a payment date is a Legal Holiday,
payment shall be made on the next succeeding day that is not a Legal Holiday,
and no interest shall accrue for the intervening period.  If a regular
record date is a Legal Holiday, the record date shall not be affected.

 

Section 11.09         Governing Law.  THIS INDENTURE, THE SECURITIES AND THE
GUARANTEES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.

 

Section 11.10         No Recourse Against
Others.  A director,
officer, employee or stockholder, as such, of the Company and the Guarantors
shall not have any liability for any

 

63

 

obligations
of the Company or the Guarantors under the Securities, the Guarantees or this
Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation.  By accepting a Security, each Holder shall
waive and release all such liability.  The waiver and release shall be
part of the consideration for the issue of the Securities.

 

Section 11.11         Successors.  All agreements of the Company any each
Guarantor in this Indenture and the Securities and the Guarantees shall bind
their respective successors.  All agreements of the Trustee in this
Indenture shall bind its successors.

 

Section 11.12         Separability Clause.  In case any provision in this Indenture
or in the Securities shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

 

Section 11.13         Reliance on Financial
Data.  In computing
any amounts under this Indenture: (a) to the extent relevant, the Company
shall use audited financial statements of the Company, its Subsidiaries, any
Person that would become a Subsidiary in connection with the transaction that
requires the computation and any Person from which the Company or a Subsidiary
has acquired an operating business, or is acquiring an operating business in
connection with the transaction that requires the computation (each such Person
whose financial statements are relevant in computing any particular amount, a “Relevant
Person”) for the period or portions of the period to which the computation
relates for which audited financial statements are available on the date of
computation and unaudited financial statements and other current financial data
based on the books and records of the Relevant Person or Relevant Persons, as
the case may be, to the extent audited financial statements for the period or
any portion of the period to which the computation relates are not available on
the date of computation; and (b) the Company shall be permitted to rely in
good faith on the financial statements and other financial data derived from
the books and records of any Relevant Person that are available on the date of
the computation.

 

Section 11.14         Multiple Originals.  The parties may sign any number of copies
of this Indenture.  Each signed copy shall be an original, but all of them
together represent the same agreement.  One signed copy is enough to prove
this Indenture.

 

Section 11.15         Table of Contents;
Headings. 
The table of contents, cross-reference sheet and headings of the Articles and
Sections of this Indenture have been inserted for convenience of reference
only, are not intended to be considered a part hereof and shall not modify or
restrict any of the terms or provisions hereof.

 

Section 11.16         U.S.A. Patriot Act.  The parties hereto
acknowledge that in accordance with Section 326 of the U.S.A. Patriot Act,
the Trustee, like all financial institutions and in order to help fight the
funding of terrorism and money laundering, is required to obtain, verify, and
record information that identifies each person or legal entity that establishes
a relationship or opens an account with the Trustee.  The parties to this Indenture agree that they
will provide the Trustee with such information as it may request in order for
the Trustee to satisfy the requirements of the U.S.A. Patriot Act.

 

[signature page follows]

 

64

 

SIGNATURES

 

IN WITNESS WHEREOF, the
parties have caused this Indenture to be duly executed as of the date first
written above.

 

	
   

  	
  COMPANY

  
	
   

  	
   

  
	
   

  	
  REGAL ENTERTAINMENT GROUP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Amy E. Miles

  
	
   

  	
   

  	
  Name: Amy E. Miles

  
	
   

  	
   

  	
  Title: Chief Executive
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TRUSTEE

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK,
  NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Richard Prokosch

  
	
   

  	
   

  	
  Name: Richard
  Prokosch

  
	
   

  	
   

  	
  Title: Vice President

  

 

[Signature Page to Indenture]

 

 

EXHIBIT A

 

PROVISIONS RELATING TO
INITIAL

SECURITIES AND EXCHANGE SECURITIES

 

I.  DEFINITIONS

 

For the purposes of this Exhibit A
the following terms shall have the meanings indicated below:

 

“Additional Securities” means any 9.125% Senior Notes due
2018, to be originally issued from time to time, excluding Exchange Securities
and Private Exchange Securities, in one or more series as provided for in this
Indenture.

 

“Applicable Procedures” means, with respect to any
transfer or transaction involving a Regulation S Global Security or beneficial
interest therein, the rules and procedures of the Depository for such
Global Security, Euroclear and Clearstream, in each case to the extent
applicable to such transaction and as in effect from time to time.

 

“Clearstream” means Clearstream Luxembourg, a société
anonyme.

 

“Definitive Security” means a certificated Security bearing,
if required, the restricted securities legend set forth in
Section 2.3(e)(i).

 

“Depository” means The Depository Trust Company, its nominees
and their respective successors.

 

“Distribution Compliance Period,” with respect to any
Securities, means the period of 40 consecutive days beginning on and including
the later of (i) the day on which such Securities are first offered to
persons other than distributors (as defined in Regulation S under the
Securities Act) in reliance on Regulation S, notice of which day shall be
promptly given by the Company to the Trustee and (ii) the issue date of
such Securities.

 

“Euroclear” means Euroclear Clearance System Plc.

 

“Exchange Securities” means any 9.125% Senior Notes due 2018
to be issued pursuant to this Indenture in connection with a Registered
Exchange Offer pursuant to a Registration Rights Agreement.

 

“Global Securities Legend” means the legend appearing under
such title on Appendix I to this Exhibit A.

 

“Initial Securities” means the 9.125% Senior Notes due 2018
in the aggregate principal amount of $275,000,000 issued on August 16,
2010.

 

“Private Exchange” means an offer by the Company, pursuant to
any Registration Rights Agreement, to issue and deliver to certain purchasers,
in exchange for the Securities held

 

A-1

 

by such purchasers as part of
their initial distribution, a like aggregate principal amount of Private
Exchange Securities.

 

“Private Exchange Securities” means any 9.125% Senior Notes
due 2018 to be issued pursuant to this Indenture in connection with a Private
Exchange pursuant to a Registration Rights Agreement.

 

“Purchase Agreement” means the underwriting agreement
relating to the Initial Securities and any purchase or underwriting agreement
relating to any future sale of Additional Securities by the Company.

 

“QIB” means a “qualified institutional buyer” as defined in
Rule 144A.

 

“Registered Exchange Offer” means any offer by the Company,
pursuant to a Registration Rights Agreement, to certain Holders of Additional
Securities, to issue and deliver to such Holders, in exchange for the
Additional Securities, a like aggregate principal amount of Exchange Securities
registered under the Securities Act.

 

“Registered Securities” means all Initial Securities and
Additional Securities initially offered and sold pursuant to a registration
statement filed with the Commission (not including in a Registered Exchange
Offer or pursuant to a Shelf Registration Statement).

 

“Registration Rights Agreement” means any registration rights
agreement relating to any Additional Securities.

 

“Regulation S” means Regulation S under the Securities Act.

 

“Regulation S Securities” means any Additional Securities
offered and sold in offshore transactions in reliance on Regulation S.

 

“Restricted Securities Legend” means any of the restricted
securities legends set forth in Section 2.3(e)(i) herein.

 

“Rule 144A” means Rule 144A under the Securities
Act.

 

“Rule 144A Securities” means any Additional Securities
offered and sold to QIBs in reliance on Rule 144A.

 

“Securities” means the Initial Securities, the Additional
Securities, the Exchange Securities and the Private Exchange Securities,
treated as a single class.

 

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

 

“Securities Custodian” means the custodian with respect to a
Global Security (as appointed by the Depository) or any successor person
thereto, who shall initially be the Trustee.

 

A-2

 

“Shelf Registration Statement” means a registration statement
filed by the Company in connection with the offer and sale of Additional
Securities or Private Exchange Securities pursuant to a Registration Rights
Agreement.

 

“Transfer Restricted Securities” means Definitive Securities
and any other Securities that bear or are required to bear the legend set forth
in Section 2.3(e)(i) hereto.

 

1.1  Other Definitions.

 

	
  Term

  	
   

  	
  Defined in Section

  
	
  “Agent Members”

  	
   

  	
  2.1(b)

  
	
  “Global Security”

  	
   

  	
  2.1(b)

  
	
  “Regulation S Global
  Security”

  	
   

  	
  2.1(b)

  
	
  “Rule 144A Global
  Security”

  	
   

  	
  2.1(b)

  

 

II.  THE SECURITIES

 

2.1  Form and Dating.  (a)  General.  The Initial Securities and any Additional Securities
will be offered and sold by the Company, from time to time, pursuant to one or
more Purchase Agreements.  The Initial Securities have been registered
under the Securities Act.  Unless
registered or exempt from registration under the Securities Act, any Additional
Securities will be resold, initially only to QIBs in reliance on Rule 144A
and to non-U.S. persons in reliance on Regulation S.  Additional
Securities so issued may thereafter be transferred to, among others, QIBs and
purchasers in reliance on Regulation S, subject to the restrictions on
transfers set forth herein.

 

(b) Global Securities.  Registered
Securities shall be issued initially in the form of one or more permanent
global Securities in definitive, fully registered form (collectively, the “Registered
Global Security”) without interest coupons and bearing the Global
Securities Legend, which shall be deposited on behalf of the purchasers of the
Securities represented thereby with the Securities Custodian, and registered in
the name of the Depository or a nominee of the Depository, duly executed by the
Company and authenticated by the Trustee as provided in this Indenture.

 

Rule 144A Securities
shall be issued initially in the form of one or more permanent global
Securities in definitive, fully registered form (collectively, the “Rule 144A
Global Security”) and Regulation S Securities shall be issued initially in
the form of one or more global Regulation S global Securities (collectively,
the “Regulation S Global Security”), in each case without interest
coupons and bearing the Global Securities Legend and Restricted Securities
Legend, which shall be deposited on behalf of the purchasers of the Securities
represented thereby with the Securities Custodian, and registered in the name
of the Depository or a nominee of the Depository, duly executed by the Company
and authenticated by the Trustee as provided in this Indenture.

 

The Registered Global
Security, the Rule 144A Global Security and the Regulation S Global
Security are each referred to herein as a “Global Security” and are
collectively referred to herein as “Global Securities”; provided that the term “Global Security”
when used in this Section 2.1(b) and in Sections 2.1(c), 2.3(g)(i),
2.3(h)(i) and 2.4 shall also

 

A-3

 

include any Security in global
form issued in connection with a Registered Exchange Offer.  The aggregate
principal amount of the Global Securities may from time to time be increased or
decreased by adjustments made on the records of the Trustee and the Depository
or its nominee and on the schedules thereto as hereinafter provided.

 

(c) Book-Entry Provisions.  This
Section 2.1(c) shall apply only to a Global Security deposited with
or on behalf of the Depository.

 

The Company shall execute and
the Trustee shall, in accordance with this Section 2.1(c) and
pursuant to an order of the Company, authenticate and deliver initially one or
more Global Securities that (a) shall be registered in the name of the
Depository for such Global Security or Global Securities or the nominee of such
Depository and (b) shall be delivered by the Trustee to such Depository or
pursuant to such Depository’s instructions or held by the Trustee as Securities
Custodian.

 

Members of, or participants
in, the Depository (“Agent Members”) shall have no rights under this
indenture with respect to any Global Security held on their behalf by the
Depository or by the Trustee as Securities Custodian or under such Global
Security, and the Depository may be treated by the Company, the Trustee and any
agent of the Company or the Trustee as the absolute owner of such Global
Security for all purposes whatsoever. Notwithstanding the foregoing, nothing
herein shall prevent the Company, the Trustee or any agent of the Company or
the Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Depository or impair, as between the Depository
and its Agent Members, the operation of customary practices of such Depository
governing the exercise of the rights of a holder of a beneficial interest in
any Global Security.

 

(d)  Definitive Securities.  Except as
provided in Section 2.3, owners of beneficial interests in Global
Securities shall not be entitled to receive physical delivery of certificated
Securities.

 

2.2  Authentication.  The Trustee
shall authenticate and deliver: (a) Initial Securities for original issue
in an aggregate principal amount of $275,000,000; (b) any Additional
Securities, if and when issued pursuant to the Indenture; and (c) any
Exchange Securities for issue only in a Registered Exchange Offer or any
Private Exchange Securities for issue only in a Private Exchange, respectively,
pursuant to a Registration Rights Agreement, for a like principal amount of
Additional Securities, in each case upon a written order of the Company signed
by two Officers or by an Officer and either a Treasurer or an Assistant
Treasurer or a Secretary or an Assistant Secretary of the Company.  Such
order shall specify the amount of the Securities to be authenticated and the
date on which the original issue of Securities is to be authenticated and
whether the Securities are to be Initial Securities, Additional Securities,
Exchange Securities or Private Exchange Securities.

 

2.3  Transfer and Exchange.  (a) 
Transfer and Exchange of Definitive
Securities.  When Definitive Securities are presented to
the Registrar or a co-registrar with a request:

 

(i) to register the
transfer of such Definitive Securities; or

 

A-4

 

(ii) to exchange such
Definitive Securities for an equal principal amount of Definitive Securities of
other authorized denominations, the Registrar or co-registrar shall register
the transfer or make the exchange as requested if its reasonable requirements
for such transaction are met; provided, however, that the Definitive Securities
surrendered for transfer or exchange:

 

(1) shall
be duly endorsed or accompanied by a written instrument of transfer in form
reasonably satisfactory to the Company and the Registrar or co-registrar, duly
executed by the Holder thereof or his attorney duly authorized in writing; and

 

(2) are
being transferred, or exchanged pursuant to an effective registration statement
under the Securities Act or pursuant to clause (A), (B) or (C) below,
and are accompanied by the following additional information and documents, as
applicable:

 

(A) if
such Definitive Securities are being delivered to the Registrar by a Holder for
registration in the name of such Holder, without transfer, a certification from
such Holder to that effect; or

 

(B) if
such Definitive Securities are being transferred to the Company, a
certification to that effect; or

 

(C) if
such Definitive Securities are being transferred pursuant to an exemption from
registration in accordance with Rule 144 under the Securities Act or
pursuant to or in compliance with an exemption from the registration
requirements of the Securities Act other than Rule 144, Rule 903 or
Rule 904, (i) a certification to that effect and (ii) if the
Company so requests, an opinion of counsel or other evidence reasonably
satisfactory to it as to the compliance with the restrictions set forth in the
legend set forth in Section 2.3(e)(i).

 

(b) Restrictions on Transfer of a Definitive Security for
a Beneficial Interest in a Global Security.  A Definitive
Security may not be exchanged for a beneficial interest in a Global Security
except upon satisfaction of the requirements set forth below.  Upon
receipt by the Trustee of a Definitive Security, duly endorsed or accompanied
by a written instrument of transfer in form reasonably satisfactory to the
Company and the Registrar, together with;

 

(i) certification (in the
form set forth on the reverse side of the Security) and, in the case of a
Definitive Security being transferred outside the United States in an offshore
transaction within the meaning of Regulation S, a signed letter substantially
in the form of Exhibit B; and

 

(ii) written instructions
directing the Trustee to make, or to direct the Securities Custodian to make,
an adjustment on its books and records with respect to such Global Security to
reflect an increase in the aggregate principal amount of the Securities
represented by the Global Security, such instructions to contain information regarding
the Depository account to be credited with such increase, then the Trustee
shall cancel such Definitive Security and cause, or direct the Securities
Custodian to cause, in accordance with the standing instructions and procedures
existing between the Depository and the Securities Custodian, the aggregate
principal

 

A-5

 

amount of Securities
represented by the Global Security to be increased by the aggregate principal
amount of the Definitive Security to be exchanged and shall credit or cause to
be credited to the account of the Person specified in such instructions a
beneficial interest in the Global Security equal to the principal amount of the
Definitive Security so canceled.  If no Global Securities are then
outstanding and the Global Security has not been previously exchanged for
certificated securities pursuant to Section 2.4, the Company shall issue
and the Trustee shall authenticate, upon written order of the Company in the
form of an Officers’ Certificate, a new Global Security in the appropriate
principal amount.

 

(c) Transfer
and Exchange of Global Securities.

 

(i) The transfer and
exchange of Global Securities or beneficial interests therein shall be effected
through the Depository, in accordance with this Indenture (including applicable
restrictions on transfer set forth herein, if any) and the procedures of the
Depository therefor.  A transferor of a beneficial interest in a Global
Security shall deliver a written order given in accordance with the Depository’s
procedures containing information regarding the participant account of the
Depository to be credited with a beneficial interest in the Global Security and
such account shall be credited in accordance with such instructions with a
beneficial interest in the Global Security and the account of the Person making
the transfer shall be debited by an amount equal to the beneficial interest in
the Global Security being transferred.  Transfers by an owner of a
beneficial interest in the Rule 144A Global Security to a transferee who
takes delivery of such interest through the Regulation S Global Security,
whether before or after the expiration of the Distribution Compliance Period,
shall be made only upon receipt by the Trustee of a certification (in the form
provided on the reverse side of the Securities) from the transferor to the
effect that such transfer is being made in accordance with Regulation S or (if
available) Rule 144 under the Securities Act or pursuant to and in
compliance with the registration requirements of the Securities Act other than
Rule 144, Rule 903 or Rule 904 and that, if such transfer is
being made prior to the expiration of the Distribution Compliance Period, the
interest transferred shall be held immediately thereafter through Euroclear or
Clearstream.

 

(ii) If the proposed
transfer is a transfer of a beneficial interest in one Global Security to a
beneficial interest in another Global Security, the Registrar shall reflect on
its books and records the date and an increase in the principal amount of the
Global Security to which such interest is being transferred in an amount equal
to the principal amount of the interest to be so transferred, and the Registrar
shall reflect on its books and records the date and a corresponding decrease in
the principal amount of Global Security from which such interest is being
transferred.

 

(iii) Notwithstanding any
other provisions of this Exhibit A (other than the provisions set
forth in Section 2.4), a Global Security may not be transferred as a whole
except by the Depository to a nominee of the Depository or by a nominee of the
Depository to the Depository or another nominee of the Depository or by the
Depository or any such nominee to a successor Depository or a nominee of such
successor Depository.

 

(iv) In the event that a Rule 144A
Global Security or Regulation S Global Security is exchanged for Securities in
definitive registered form pursuant to Section 2.4 prior to the
consummation of a Registered Exchange Offer or the effectiveness of a Shelf
Registration Statement with respect to such Securities, such Securities may be
exchanged only in accordance

 

A-6

 

with such procedures as are
substantially consistent with the provisions of this Section 2.3
(including, if applicable, the certification requirements set forth on the
reverse of the Securities intended to ensure that such transfers comply with
Rule 144A, Regulation S or such other applicable exemption from
registration under the Securities Act, as the case may be) and such other
procedures as may from time to time be adopted by the Company.

 

(d) Restrictions on Transfer of Regulation S Global
Security.  (i)  Prior to the expiration of the
Distribution Compliance Period, interests in the Regulation S Global Security
may only be held through Euroclear or Clearstream.  During the
Distribution Compliance Period, beneficial ownership interests in the
Regulation S Global Security may only be sold, pledged or transferred through
Euroclear or Clearstream in accordance with the Applicable Procedures and only
(1) so long as such security is eligible for resale pursuant to
Rule 144A, to a person whom the selling holder reasonably believes is a
QIB that purchases for its own account or for the account of a QIB to whom
notice is given that the resale, pledge or transfer is being made in reliance
on Rule 144A, (2) in an offshore transaction in accordance with
Regulation S, (3) pursuant to an exemption from registration under the
Securities Act provided by Rule 144 (if applicable) under the Securities
Act, or (4) pursuant to an effective registration statement under the
Securities Act, in each case in accordance with any applicable securities laws
of any state of the United States.  Prior to the expiration of the
Distribution Compliance Period, transfers by an owner of a beneficial interest
in the Regulation S Global Security to a transferee who takes delivery of such
interest through the Rule 144A Global Security shall be made only in
accordance with Applicable Procedures and upon receipt by the Trustee of a
written certification from the transferor of the beneficial interest in the
form provided on the reverse of the Security to the effect that such transfer
is being made to a QIB within the meaning of Rule 144A in a transaction
meeting the requirements of Rule 144A.  Such written certification
shall no longer be required after the expiration of the Distribution Compliance
Period.

 

(ii) Upon the expiration
of the Distribution Compliance Period, beneficial ownership interests in the
Regulation S Global Security shall be transferable in accordance with
applicable law and the other terms of this Indenture.

 

(e) Legend.

 

(i) Except as permitted
by the following paragraphs (ii), (iii), (iv) and (v), each certificate
evidencing the Rule 144A Global Security, the Definitive Securities and
the Regulation S Global Security (prior to the expiration of the Distribution
Compliance Period) (and all Securities issued in exchange therefor or in
substitution thereof), shall bear a legend in substantially the following form:

 

THIS SECURITY (OR ITS
PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION
UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE “SECURITIES ACT”), AND THIS
SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE
OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF
THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE
RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

 

A-7

 

THE HOLDER OF THIS SECURITY
AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY MAY BE
OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) IN THE UNITED
STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN
A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE
UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER
THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR
(IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT, IN EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE WITH
ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND
(B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY
PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN
(A) ABOVE.

 

Prior to the Distribution
Compliance Period, each Regulation S Global Security will also bear the
following additional legend:

 

THIS SECURITY (OR ITS
PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION ORIGINALLY EXEMPT FROM
REGISTRATION UNDER THE SECURITIES ACT, AND MAY NOT BE TRANSFERRED IN THE
UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY U.S. PERSON EXCEPT
PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS. TERMS USED ABOVE HAVE
THE MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE SECURITIES ACT.

 

Each Definitive Security will
also bear the following additional legend:

 

IN CONNECTION WITH ANY
TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH
CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY
REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

 

(ii) Upon any sale or
transfer of a Transfer Restricted Security (including any Transfer Restricted
Security represented by a Global Security) pursuant to Rule 144 under the
Securities Act or pursuant to and in compliance with an exemption from the
registration requirements of the Securities Act other than Rule 144,
Rule 903 or Rule 904:

 

(A) in
the case of any Transfer Restricted Security that is a Definitive Security, the
Registrar shall permit the Holder thereof to exchange such Transfer Restricted
Security for a Definitive Security that does not bear the legends set forth
above and rescind any restriction on the transfer of such Transfer Restricted
Security; and

 

A-8

 

(B) in
the case of any Transfer Restricted Security that is represented by a Global
Security, the Registrar shall permit the beneficial owner thereof to exchange
such Transfer Restricted Security for a beneficial interest in a Global
Security that does not bear the legends set forth above and rescind any
restriction on the transfer of such Transfer Restricted Security, in either
case, if the Holder certifies in writing to the Registrar that its request for
such exchange was made in reliance on Rule 144 or in reliance on an
exemption from the registration requirements of the Securities Act other than
Rule 144, Rule 903 or Rule 904 (such certification to be in the
form set forth on the reverse of the Security).

 

(iii) After a transfer of
any Additional Securities or Private Exchange Securities, as the case may be,
during the period of the effectiveness of a Shelf Registration Statement with
respect to such Additional Securities or Private Exchange Securities, all
requirements pertaining to restricted legends on such Additional Security or
such Private Exchange Securities will cease to apply, and a global Additional
Security or Private Exchange Security without restricted legends will be
available to the transferee of the beneficial interests in such Additional Securities
or Private Exchange Securities.  Upon the occurrence of any of the
circumstances described in this paragraph, the Company will deliver an Officers’
Certificate to the Trustee instructing the Trustee to issue Securities without
legends.

 

(iv) Upon the
consummation of a Registered Exchange Offer with respect to any Additional
Securities pursuant to which certain Holders of such Additional Securities are
offered Exchange Securities in exchange for their Additional Securities,
Exchange Securities in global form without restrictive legends will be
available to Holders or beneficial owners that exchange such Additional
Securities (or beneficial interests therein) in such Registered Exchange
Offer.  Upon the occurrence of any of the circumstances described in this
paragraph, the Company will deliver an Officers’ Certificate to the Trustee
instructing the Trustee to issue Securities without restricted legends.

 

(v) Upon the consummation
of a Private Exchange with respect to any Additional Securities pursuant to
which Holders of such Additional Securities are offered Private Exchange
Securities in exchange for their Additional Securities, as the case may be, all
requirements pertaining to such Additional Securities that Additional
Securities issued to certain Holders be issued in global form will continue to
apply, and Private Exchange Securities in global form with, to the extent
required by applicable law, the Restricted Securities Legend will be available
to Holders that exchange such Additional Securities in such Private Exchange.

 

(vi) Upon a sale or
transfer after the expiration of the Distribution Compliance Period of any
Security acquired pursuant to Regulation S, all requirements that such Security
bear any Restricted Securities Legend shall cease to apply and the requirements
requiring any such Security be issued in global form shall continue to apply.

 

(f) Cancellation or Adjustment of Global Security. 
At such time as all beneficial interests in a Global Security have either been
exchanged for certificated or Definitive Securities, redeemed, repurchased or
canceled, such Global Security shall be returned by the Depository to the
Trustee for cancellation or retained and canceled by the Trustee.  At any
time prior to such

 

A-9

 

cancellation, if any
beneficial interest in a Global Security is exchanged for certificated or
Definitive Securities, redeemed, repurchased or canceled, the principal amount
of Securities represented by such Global Security shall be reduced and an
adjustment shall be made on the books and records of the Trustee (if it is then
the Securities Custodian for such Global Security) with respect to such Global
Security, by the Trustee or the Securities Custodian, to reflect such reduction.

 

(g) Obligations
with Respect to Transfers and Exchanges of Securities.

 

(i) To permit
registrations of transfers and exchanges, the Company shall execute and the
Trustee shall authenticate certificated Securities, Definitive Securities and
Global Securities at the Registrar’s or co-registrar’s request.

 

(ii) No service charge
shall be made for any registration of transfer or exchange, but the Company or
the Trustee may require payment of a sum sufficient to cover any transfer tax,
assessments, or similar governmental charge payable in connection therewith
(other than any such transfer taxes, assessments or similar governmental charge
payable upon exchange or registration of transfer pursuant to Sections 3.06,
4.11 and 9.05 of this Indenture).

 

(iii) The Registrar or
co-registrar shall not be required to register the transfer of or exchange of
any Security for a period beginning 15 days before the mailing of a notice of
redemption or an offer to repurchase Securities or 15 days before an interest
payment date.

 

(iv) Prior to the due
presentation for registration of transfer of any Security, the Company, the
Trustee, the Paying Agent, the Registrar or any co-registrar may deem and treat
the person in whose name a Security is registered as the absolute owner of such
Security for the purpose of receiving payment of principal of and interest on
such Security and for all other purposes whatsoever, whether or not such
Security is overdue, and none of the Company, the Trustee, the Paying Agent,
the Registrar or any co-registrar shall be affected by notice to the contrary.

 

(v) All Securities issued
upon any registration of transfer or exchange pursuant to the terms of this
Indenture shall evidence the same debt and shall be entitled to the same
benefits under this Indenture as the Securities surrendered upon such
registration of transfer or exchange.

 

(h) No
Obligation of the Trustee.

 

(i) The Trustee shall
have no responsibility or obligation to any beneficial owner of a Global
Security, a member of, or a participant in the Depository or any other Person
with respect to the accuracy of the records of the Depository or its nominee or
of any participant or member thereof, with respect to any ownership interest in
the Securities or with respect to the delivery to any participant, member,
beneficial owner or other Person (other than the Depository) of any notice
(including any notice of redemption or repurchase) or the payment of any
amount, under or with respect to such Securities.  All notices and
communications to be given to the Holders and all payments to be made to
Holders under the Securities shall be given or made only to the registered
Holders (which shall be the Depository or its nominee in the case of a Global
Security).  The rights of beneficial owners in any Global Security shall
be exercised only through the Depository subject to the applicable
rules and procedures of the Depository.  The Trustee

 

A-10

 

may rely and shall be fully
protected in relying upon information furnished by the Depository with respect
to its members, participants and any beneficial owners.

 

(ii) The Trustee shall
have no obligation or duty to monitor, determine or inquire as to compliance
with any restrictions on transfer imposed under this Indenture or under
applicable law with respect to any transfer of any interest in any Security
(including any transfers between or among Depository participants, members or
beneficial owners in any Global Security) other than to require delivery of
such certificates and other documentation or evidence as are expressly required
by, and to do so if and when expressly required by, the terms of this
Indenture, and to examine the same to determine substantial compliance as to
form with the express requirements hereof.

 

2.4 Certificated Securities.

 

(a) Any Global Security
deposited with the Depository or with the Trustee as Securities Custodian
pursuant to Section 2.1(b) shall be transferred to the beneficial
owners thereof in the form of certificated Securities in an aggregate principal
amount equal to the principal amount of such Global Security, in exchange for
such Global Security, only if (i) the Depository notifies the Company that
it is unwilling or unable to continue as a Depository for such Global Security
or if at any time the Depository ceases to be a “clearing agency” registered
under the Exchange Act, and a successor depositary is not appointed by the
Company within 90 days of such notice, or (ii) a Default or an Event of
Default has occurred and is continuing under the Indenture or (iii) the
Company, in its sole discretion, notifies the Trustee in writing that it elects
to cause the issuance of certificated Securities under this Indenture.

 

(b) Any Global Security
that is transferable to the beneficial owners thereof pursuant to this
Section 2.4 shall be surrendered by the Depository to the Trustee located
in the Borough of Manhattan, The City of New York, to be so transferred, in
whole or from time to time in part, without charge (although the Company may
require payment of a sum sufficient to cover any tax or governmental charge
imposed in connection therewith), and the Trustee shall authenticate and
deliver, upon such transfer of each portion of such Global Security, an equal
aggregate principal amount of certificated Securities of authorized
denominations.  Certificated Securities issued in exchange for any portion
of a Global Security transferred pursuant to this Section shall be
executed, authenticated and delivered only in denominations of $2,000 and any
integral multiple of $1,000 in excess thereof and registered in such names as
the Depository shall direct.  Any certificated Security delivered in
exchange for an interest in the Rule 144A Global Security or the
Regulation S Global Security shall, except as otherwise provided by
Section 2.3(c), bear the Restricted Securities Legend.

 

(c) The registered Holder
of a Global Security may grant proxies and otherwise authorize any Person,
including Agent Members and Persons that may hold interests through Agent
Members, to take any action that a Holder is entitled to take under this
Indenture or the Securities.

 

(d) In the event of the
occurrence of any of the events specified in Section 2.4(a)(i),
(ii) or (iii), the Company will promptly make available to the Trustee a

 

A-11

 

reasonable supply of
certificated Securities in definitive, fully registered form without interest
coupons.

 

A-12

 

APPENDIX I

To EXHIBIT A

 

[FORM OF
FACE OF INITIAL SECURITY]

 

9.125%
Senior Notes due 2018

 

	
  [No.]

  	
   

  	
  CUSIP No.

  
	
   

  	
   

  	
  ISIN

  

 

REGAL ENTERTAINMENT GROUP, a
Delaware corporation, promises to pay to Cede & Co., or registered
assigns, the principal sum of
                       
Dollars (         ) on August 15,
2018.

 

Interest Payment Dates: February 15
and August 15, commencing February 15, 2011.

 

Record Dates: February 1
and August 1.

 

A-13

 

IN WITNESS WHEREOF, the
parties have caused this instrument to be duly executed as of the
         day of
                        ,
2010.

 

	
   

  	
  REGAL ENTERTAINMENT GROUP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

 

Wells Fargo Bank, National
Association as Trustee, certifies that

this is one of the Securities referred to in the

Indenture.

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Officer

  	
   

  

 

Additional provisions
of this Security are set forth on the other side of this Security.

 

A-14

 

[FORM OF
REVERSE SIDE OF INITIAL SECURITY]

 

9.125%
Senior Notes due 2018

 

[Global Securities
Legend]

 

UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO.  OR SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES
OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE.

 

1.  Interest.
Regal Entertainment Group, a Delaware corporation (the “Company”),
promises to pay interest on the principal amount of this Security at the rate
per annum shown above.  The Company will pay interest semiannually, in
arrears, on February 15 and August 15 of each year, commencing February 15,
2011, in immediately available funds.  Interest on the Securities will
accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from the date of issuance.  Interest shall be
computed on the basis of a 360-day year of twelve 30-day months.  The
Company shall pay interest on overdue principal at the rate borne by the
Securities plus 1% per annum, and it shall pay interest on overdue installments
of interest at the rate borne by the Securities to the extent lawful.

 

2.  Method of Payment

 

The Company will pay interest
on the Securities (except defaulted interest) to the Persons who are registered
holders of Securities at the close of business on the February 1 or August 1
next preceding the interest payment date even if Securities are canceled after
the record date and on or before the interest payment date.  Holders must
surrender Securities to a Paying Agent to collect principal payments.  The
Company will pay principal and interest in money of the United States of
America that at the time of payment is legal tender for payment of public and
private debts.  Payments in respect of the Securities represented by a
Global Security (including principal, premium and interest) will be made by
wire transfer of immediately available funds to the accounts specified by The
Depository Trust Company.  The Company will

 

A-15

 

make all payments in respect
of a certificated Security (including principal, premium and interest) by
mailing a check to the registered address of each Holder thereof; provided,
however, that payments on the Securities may also be made, in the
case of a Holder of at least $1,000,000 aggregate principal amount of
Securities, by wire transfer to a U.S. dollar account maintained by the payee
with a bank in the United States if such Holder elects payment by wire transfer
by giving written notice to the Trustee or the Paying Agent to such effect
designating such account no later than 30 days immediately preceding the
relevant due date for payment (or such other date as the Trustee may accept in
its discretion).

 

3.  Paying Agent and Registrar

 

Initially, Wells Fargo Bank,
National Association (the “Trustee”), will act as Paying Agent and
Registrar.  The Company may appoint and change any Paying Agent, Registrar
or co-registrar without notice.  The Company or any of its domestic Wholly
Owned Subsidiaries may act as Paying Agent, Registrar or co-registrar.

 

4.  Indenture

 

The Company issued the
Securities under an Indenture dated as of August 16, 2010 (the “Indenture”),
between the Company and the Trustee.  The terms of the Securities include
those stated in the Indenture and those made part of the Indenture by reference
to the Trust Indenture Act of 1939 (15 U.S.C. 77aaa-77bbbb) as in effect on the
date of the Indenture (the “TIA”).  Terms defined in the Indenture
and not defined herein have the meanings ascribed thereto in the
Indenture.  The Securities are subject to all such terms, and Holders are
referred to the Indenture and the TIA for a statement of those terms.

 

The Securities are senior
unsecured obligations of the Company and can be issued in an initial amount of
up to $275,000,000 and additional amounts as part of the same series or new
series under the Indenture which are unlimited (subject to Sections 2.01 and
2.10 of the Indenture).  The Indenture imposes certain limitations on the
ability of the Company and its Subsidiaries to, among other things, incur
additional indebtedness, pay dividends or make distributions in respect of
their capital stock, purchase or redeem capital stock, enter into transactions
with stockholders or certain affiliates, create liens or consolidate, merge or
sell all or substantially all of the Company’s assets, other than in certain
transactions between the Company and one or more of its Wholly Owned
Subsidiaries.  These limitations are subject to significant exceptions.

 

5.  Optional Redemption

 

(a)  Except as set forth
below, the Securities may not be redeemed prior to August 15, 2014.

 

(b)  At any time prior to
August 15, 2014, the Company may redeem the Securities in whole at any
time or in part from time to time at a redemption price equal to 100% of the
principal amount of the Securities redeemed plus the Applicable Premium as of,
and accrued and unpaid interest and Additional Interest, if any, to the
redemption date (subject to the rights of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date that
is on or prior to the date of redemption).

 

A-16

 

(c)  At any time on or after August 15, 2014, the
Company may redeem the Securities in whole at any time or in part from time to
time at the following redemption prices (expressed in percentages of principal
amount), plus accrued and unpaid interest and Additional Interest, if any, to
the redemption date (subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date that
is on or prior to the date of redemption), if redeemed during the 12-month
period beginning on or after August 15 of the years set forth below:

 

	
  Period

  	
   

  	
  Redemption Price

  	
   

  
	
  2014

  	
   

  	
  104.563

  	
  %

  
	
  2015

  	
   

  	
  102.281

  	
  %

  
	
  2016
  and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(d)  At any time prior to August 15, 2013,
the Company may on any one or more occasions redeem up to 35% of the original
aggregate principal amount of the Securities with the Net Cash Proceeds of one
or more Equity Offerings at a redemption price of 109.125% of the principal
amount thereof, plus accrued and unpaid interest and Additional Interest, if
any, to the redemption date (subject to the right of holders of record on the
relevant record date to receive interest due on the relevant interest payment
date); provided that

 

(1)  at least 65% of the original aggregate
principal amount of the Securities remains outstanding after each such
redemption; and

 

(2)  the redemption occurs within 90 days after
the closing of such Equity Offering.

 

6.  Mandatory
Redemption

 

The Company will not be
required to make mandatory redemption or sinking fund payments with respect to
the Securities.

 

7.  Notice of Redemption

 

Notice of redemption will be
mailed by first class mail at least 30 days but not more than 60 days before
the redemption date to each Holder of Securities to be redeemed at its
registered address.  Securities in denominations larger than $2,000 may be
redeemed in part but only in whole multiples of $1,000.  If money
sufficient to pay the redemption price of and accrued interest on all
Securities (or portions thereof) to be redeemed on the redemption date is
deposited with the Paying Agent on or before the redemption date and certain
other conditions are satisfied, on and after such date interest ceases to
accrue on such Securities (or such portions thereof) called for redemption.

 

8.  Repurchase of Securities
at the Option of Holders upon Change of Control

 

Upon a Change of Control, the
Company will be required to make an offer, subject to certain conditions
specified in the Indenture, to repurchase all the Securities of each Holder at
a purchase price equal to 101% of the principal amount of Securities to be
repurchased

 

A-17

 

plus accrued and unpaid
interest and Additional Interest, if any, to the date of purchase (subject to
the right of Holders of record on the relevant record date to receive interest
due on the interest payment date that is on or prior to the date of purchase)
as provided in, and subject to the terms of, the Indenture.

 

9.  Denominations; Transfer;
Exchange

 

The Securities are in
registered form without coupons in denominations of $2,000 and whole multiples
of $1,000 in excess thereof.  A Holder may transfer or exchange Securities
in accordance with the Indenture.  Upon any transfer or exchange, the
Registrar and the Trustee may require a Holder, among other things, to furnish
appropriate endorsements or transfer documents and to pay any taxes required by
law or permitted by the Indenture.  The Registrar need not register the
transfer of or exchange any Securities selected for redemption (except, in the
case of a Security to be redeemed in part, the portion of the Security not to
be redeemed) or to transfer or exchange any Securities for a period of 15 days
prior to a selection of Securities to be redeemed or 15 days before an interest
payment date.

 

10.  Persons Deemed Owners

 

The registered Holder of this
Security may be treated as the owner of it for all purposes.

 

11.  Unclaimed Money

 

If money for the payment of
principal, premium or interest remains unclaimed for two years, the Trustee or
Paying Agent shall pay the money back to the Company at its written request
unless an abandoned property law designates another Person.  After any
such payment, Holders entitled to the money must look only to the Company and
not to the Trustee for payment.

 

12.  Discharge and Defeasance

 

Subject to certain conditions
set forth in the Indenture, the Company at any time may terminate some of or
all its obligations under the Securities and the Indenture if the Company
deposits with the Trustee money or Government Securities for the payment of
principal and interest on the Securities to redemption or maturity, as the case
may be.

 

13.  Amendment, Waiver

 

Subject to certain exceptions
set forth in the Indenture, (i) the Indenture or the Securities may be
amended without notice to any Holder but with the written consent of the
Holders of at least a majority in aggregate principal amount of the outstanding
Securities and (ii) any default or noncompliance with any provision may be
waived with the written consent of the Holders of at least a majority in
aggregate principal amount of the outstanding Securities.  Subject to
certain exceptions set forth in the Indenture, without the consent of any
Holder of Securities, the Company and the Trustee may amend the Indenture or
the Securities: (i) to cure any ambiguity, omission, defect or
inconsistency; (ii) to comply with Article V of the Indenture;
(iii) to provide for uncertificated Securities in addition to or in place
of certificated Securities; (iv) to add additional Guarantees with respect
to the Securities; (v) to secure the

 

A-18

 

Securities; (vi) to add
additional covenants of the Company or to surrender rights and powers conferred
on the Company; (vii) to make any change that does not adversely affect
the rights of any Holder; or (viii) to comply with the requirements of the
SEC in order to effect or maintain the qualification of the Indenture under the
TIA.

 

14.  Defaults and Remedies

 

If an Event of Default occurs
and is continuing, the Trustee or the Holders of at least 25% in aggregate
principal amount of the Securities then outstanding, subject to certain
limitations, may declare all the Securities to be immediately due and
payable.  Certain events of bankruptcy or insolvency are Events of Default
and shall result in the Securities being immediately due and payable upon the
occurrence of such Events of Default without any further act of the Trustee or
any Holder.

 

Holders of Securities may not
enforce the Indenture or the Securities except as provided in the
Indenture.  The Trustee may refuse to enforce the Indenture or the
Securities unless it receives reasonable indemnity or security.  Subject
to certain limitations, Holders of a majority in aggregate principal amount of
the Securities then outstanding may direct the Trustee in its exercise of any
trust or power under the Indenture.  The Holders of a majority in
aggregate principal amount of the Securities then outstanding, by written notice
to the Company and the Trustee, may rescind any declaration of acceleration and
its consequences if the rescission would not conflict with any judgment or
decree, and if all existing Events of Default have been cured or waived except
non-payment of principal or interest that has become due solely because of the
acceleration.

 

15.  Trustee Dealings with the
Company

 

Subject to certain limitations
imposed by the TIA, the Trustee under the Indenture, in its individual or any
other capacity, may become the owner or pledgee of Securities and may otherwise
deal with and collect obligations owed to it by the Company or its Affiliates
and may otherwise deal with the Company or its Affiliates with the same rights
it would have if it were not Trustee.

 

16.  No Recourse Against Others

 

A director, officer, employee
or stockholder, as such, of the Company shall not have any liability for any
obligations of the Company under the Securities or the Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation.  By accepting a Security, each Holder waives and releases all
such liability.  The waiver and release are part of the consideration for
the issue of the Securities.

 

17.  Authentication

 

This Security shall not be
valid until an authorized signatory of the Trustee (or an authenticating agent)
manually signs the certificate of authentication on the other side of this
Security.

 

A-19

 

18.  Abbreviations

 

Customary abbreviations may be
used in the name of a Holder or an assignee, such as TEN COM (=tenants in
common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with
rights of survivorship and not as tenants in common), CUST (=custodian), and
U/G/M/A (=Uniform Gift to Minors Act).

 

19.  Governing
Law

 

THIS SECURITY SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

 

20.  ISINs and CUSIP Numbers

 

Pursuant to a recommendation
promulgated by the Committee on Uniform Security Identification Procedures, the
Company has caused ISINs and/or CUSIP numbers to be printed on the Securities
and has directed the Trustee to use ISINs and/or CUSIP numbers in notices of
redemption as a convenience to Holders.  No representation is made as to
the accuracy of such numbers either as printed on the Securities or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

 

A Holder of Securities may
upon written request and without charge to the Holder receive a copy of the
Indenture which has in it the text of this Security.  Requests may be made
to:

 

Regal Entertainment Group

7132 Regal Lane

Knoxville, Tennessee 37918

Attention: General Counsel

(865) 922-1123

 

A-20

 

ASSIGNMENT FORM

 

To assign this
Security, fill in the form below: I or we assign and transfer this Security to

 

	
   

  

(Print or type assignee’s
name, address and zip code)

 

	
   

  

(Insert assignee’s soc. sec.
or tax I.D. No.)

 

and irrevocably appoint                                 agent
to transfer this Security on the books of the Company.  The agent may
substitute another to act for him.

 

	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Your Signature:

  	
   

  	
   

  
					

 

Sign exactly as your name
appears on the other side of this Security.

 

In connection with any
transfer of any of the Securities evidenced by this certificate occurring while
the Securities are Transfer Restricted Securities after the later of the date
of original issuance of such Securities and the last date, if any, on which such
Securities were owned by the Company or any Affiliate of the Company, the
undersigned confirms that such Securities are being transferred in accordance
with its terms:

 

CHECK ONE BOX BELOW

 

o      
(1) pursuant to an effective registration statement under the Securities
Act of 1933; or

 

o       (2) to a “qualified
institutional buyer” (as defined in Rule 144A under the Securities Act of
1933) that purchases for its own account or for the account of a qualified
institutional buyer to whom notice is given that such transfer is being made in
reliance on Rule 144A, in each case pursuant to and in compliance with
Rule 144A under the Securities Act of 1933; or

 

o      
(3) outside the United States in an offshore transaction within the
meaning of Regulation S under the Securities Act of 1933 in compliance with
Rule 904 under the Securities Act of 1933; or

 

o      
(4) pursuant to another available exemption from registration provided by
Rule 144 under the Securities Act of 1933; or

 

o      
(5) (i) pursuant to and in compliance with an exemption from the
registration requirements of the Securities Act of 1933 other than
Rule 144, Rule 903 or Rule 904 and in compliance with the
transfer restrictions contained in the Indenture and any applicable blue sky
securities laws of any State in the United States and (ii) the
restrictions on

 

A-21

 

transfer contained in the
Indenture and the Restricted Securities Legend are not required in order to
maintain compliance with the Securities Act.

 

Unless one of the boxes is
checked, the Trustee will refuse to register any of the Securities evidenced by
this certificate in the name of any person other than the registered holder
thereof; provided, however, that if boxes (4) or
(5) are checked, the Trustee may require, prior to registering any such
transfer of the Securities, such legal opinions, certifications and other
information as the Company has reasonably requested to confirm that such
transfer is being made pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act of 1933.

 

	
  Date:

  	
   

  	
   

  	
  Your

  
	
   

  	
   

  	
  Signature:

  	
   

  
	
  Signature

  	
   

  	
   

  
	
  Guarantee:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
						

 

Signature must be guaranteed
by a participant in a recognized signature guaranty medallion program or other
signature guarantor acceptable to the Trustee.

 

A-22

 

[TO BE ATTACHED TO
GLOBAL SECURITIES]

 

SCHEDULE OF INCREASES
OR DECREASES IN GLOBAL SECURITY

 

The initial principal amount
of this Global Security is
$        .  The following
increases or decreases in this Global Security have been made:

 

	
  Date of

  Exchange

  	
   

  	
  Amount of

  decrease

  in Principal

  Amount

  of this Global

  Security

  	
   

  	
  Amount of

  increase in

  Principal Amount

  of this Global

  Security

  	
   

  	
  Principal

  amount

  of this Global

  Security

  following such

  decrease or

  increase

  	
   

  	
  Signature
  of

  authorized

  signatory

  of Trustee or

  Securities

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-23

 

OPTION OF HOLDER TO
ELECT PURCHASE

 

If you want to elect to have
this Security purchased by the Company pursuant to Section 4.11 (Change of
Control) of the Indenture, check the box:  o

 

If you want to elect to have
only part of this Security purchased by the Company pursuant to Section 4.11
of the Indenture, state the amount:

 

$

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Your

  
	
   

  	
   

  	
  Signature

  	
   

  
	
  (Sign exactly as your name appears on the other side of
  the Security)

  
	
  Signature

  	
   

  	
   

  
	
  Guarantee:

  	
   

  	
   

  
							

Signature must be guaranteed
by a participant in a recognized signature guaranty medallion program or other
signature guarantor acceptable to the Trustee.

 

TO BE COMPLETED BY PURCHASER
IF (3) ABOVE IS CHECKED.

 

The undersigned represents and
warrants that it is purchasing this Security for its own account or an account
with respect to which it exercises sole investment discretion and that it and
any such account is a “qualified institutional buyer” within the meaning of
Rule 144A under the Securities Act of 1933, as amended, and is aware that
the sale to it is being made in reliance on Rule 144A and acknowledges
that it has received such information regarding the Company as the undersigned
has requested pursuant to Rule 144A or has determined not to request such
information and that it is aware that the transferor is relying upon the
undersigned’s foregoing representations in order to claim the exemption from
registration provided by Rule 144A.

 

 

	
   

  	
   

  
	
   

  	
  Dated:

  

 

A-24

 

EXHIBIT B

 

Form of
Certificate To Be Delivered

in Connection with Transfers

Pursuant to Regulation S

 

Wells Fargo Bank — DAPS Reorg.

MAC N9303-121

608 2nd Avenue South

Minneapolis, MN 55479

Telephone No.: (877) 872-4605

Fax No.: (866) 969-1290

Email: DAPSReorg@wellsfargo.com

 

	
  Re:

  	
  Regal
  Entertainment Group (the “Company”)

  
	
   

  	
  9.125%
  Senior Notes due 2018 (the “Securities”)

  

 

Ladies and Gentlemen:

 

In connection with our
proposed sale of $[     ] aggregate principal amount
of the Securities, we confirm that such sale has been effected pursuant to and
in accordance with Regulation S under the U.S. Securities Act of 1933, as
amended (the “Securities Act”), and, accordingly, we represent that:

 

(1)  the offer of the Securities was not made to a
person in the United States;

 

(2)  either (a) at the time the buy offer was
originated, the transferee was outside the United States or we and any person
acting on our behalf reasonably believed that the transferee was outside the
United States, or (b) the transaction was executed in, on or through the
facilities of a designated offshore securities market and neither we nor any
person acting on our behalf knows that the transaction has been prearranged
with a buyer in the United States;

 

(3)  no directed selling efforts have been made in
the United States in contravention of the requirements of
Rule 903(b) or Rule 904(b) of Regulation S, as applicable;

 

(4)  the transaction is not part of a plan or
scheme to evade the registration requirements of the Securities Act; and

 

(5)  we have advised the transferee of the
transfer restrictions applicable to the Securities.

 

B-1

 

You, the Company and counsel
for the Company are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceedings or official inquiry with respect to the
matters covered hereby.  Terms used in this certificate have the meanings
set forth in Regulation S.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name of Transferor]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized
  Signature

  

 

B-2

 

EXHIBIT C

 

FORM OF
SUPPLEMENTAL INDENTURE TO ADD GUARANTORS

 

This Supplemental Indenture,
dated as of
[              
      ], 20      
(this “Supplemental Indenture” or “Guarantee”), among [name of future Guarantor] (the “Guarantor”),
Regal Entertainment Group (together with its successors and assigns, the “Company”),
each other then existing Guarantor (if any) under the Indenture referred to
below, and Wells Fargo Bank, National Association, as Trustee under the
Indenture referred to below.

 

W I T N E S S E T H:

 

WHEREAS, the Company and the
Trustee have heretofore executed and delivered an Indenture, dated as of August
16, 2010 (as amended, supplemented, waived or otherwise modified, the “Indenture”),
providing for the issuance of 9.125% Senior Notes due 2018 of the Company (the “Securities”);

 

WHEREAS, Section 4.10 of
the Indenture provides that the Company is required to cause each Subsidiary
that Guarantees obligations under any Indebtedness of the Company or any
Guarantor to execute and deliver to the Trustee a supplemental indenture
pursuant to which such Subsidiary will unconditionally Guarantee, on a joint
and several basis, the full and prompt payment of the principal of, premium, if
any, and interest on the Securities on a senior unsecured basis; and

 

WHEREAS, pursuant to
Section 9.01 of the Indenture, the Trustee, the Company and the Guarantors
are authorized to execute and deliver this Supplemental Indenture to amend or
supplement the Indenture, without the consent of any Holder;

 

NOW, THEREFORE, in
consideration of the foregoing and for other good and valuable consideration,
the receipt of which is hereby acknowledged, the Guarantor, the Company, the
other Guarantors and the Trustee mutually covenant and agree for the equal and
ratable benefit of the Holders of the Securities as follows:

 

ARTICLE I

 

Definitions

 

SECTION 1.1  Defined Terms.  As used in this
Supplemental Indenture, terms defined in the Indenture or in the preamble or
recital hereto are used herein as therein defined, except that the term “Holders”
in this Guarantee shall refer to the term “Holders” as defined in the
Indenture and the Trustee acting on behalf or for the benefit of such
Holders.  The words “herein,” “hereof” and “hereby” and other words of
similar import used in this Supplemental Indenture refer to this Supplemental
Indenture as a whole and not to any particular section hereof.

 

C-1

 

ARTICLE II

 

Agreement to be Bound;
Guarantee

 

SECTION 2.1  Agreement to be Bound.  The
Guarantor hereby becomes a party to the Indenture as a Guarantor and as such
will have all of the rights and be subject to all of the obligations and
agreements of a Guarantor under the Indenture.  The Guarantor agrees to be
bound by all of the provisions of the Indenture applicable to a Guarantor and
to perform all of the obligations and agreements of a Guarantor under the Indenture.

 

SECTION 2.2  Guarantee.  The Guarantor agrees,
on a joint and several basis with all the existing Guarantors, to fully,
unconditionally and irrevocably Guarantee to each Holder of the Securities and
the Trustee the Guarantor Obligations pursuant to Article X of the
Indenture on a senior basis.

 

ARTICLE III

 

Miscellaneous

 

SECTION 3.1  Notices.  All notices and other
communications to the Guarantor shall be given as provided in the Indenture to
the Guarantor, at its address set forth below, with a copy to the Company as
provided in the Indenture for notices to the Company.

 

SECTION 3.2  Parties.  Nothing expressed or
mentioned herein is intended or shall be construed to give any Person, firm or
corporation, other than the Holders and the Trustee, any legal or equitable
right, remedy or claim under or in respect of this Supplemental indenture
or the Indenture or any provision herein or therein contained.

 

SECTION 3.3  Governing Law.  This Supplemental
Indenture shall be governed by, and construed in accordance with, the laws of
the State of New York.

 

SECTION 3.4  Ratification of Indenture; Supplemental
Indentures Part of Indenture.  Except as expressly amended
hereby, the Indenture is in all respects ratified and confirmed and all the
terms, conditions and provisions thereof shall remain in full force and
effect.  This Supplemental Indenture shall form a part of the Indenture
for all purposes, and every Holder of Securities heretofore or hereafter
authenticated and delivered shall be bound hereby.

 

SECTION 3.5  Trustee not Responsible.  The
Trustee shall not be responsible in any manner whatsoever for or in respect of
the validity or sufficiency of this Supplemental Indenture or for or in respect
of the recitals contained herein, all of which are made solely by the Company
and the Guarantors.

 

SECTION 3.6  Counterparts.  The parties hereto
may sign one or more copies of this Supplemental Indenture in counterparts, all
of which together shall constitute one and the same agreement.

 

C-2

 

SECTION 3.7  Headings.  The headings of the
Articles and the Sections in this Guarantee are for convenience of reference
only and shall not be deemed to alter or affect the meaning or interpretation
of any provisions hereof.

 

IN WITNESS WHEREOF, the
parties hereto have caused this Indenture to be duly executed as of the date
first above written.

 

	
   

  	
   

  	
  [GUARANTOR],

  
	
   

  	
   

  	
  as a Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Address]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WELLS FARGO BANK,
  NATIONAL ASSOCIATION, as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

C-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]